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

CHAPTER 4--S.F.No. 2
An act
relating to economic development; modifying certain economic
development fees, licensing provisions, and programs; modifying certain
occupational continuing education requirements; clarifying and modifying
regulation of medical gas system and manufactured home provisions; requiring
reports; appropriating money for jobs, economic development, and housing
purposes;amending Minnesota Statutes 2010, sections 116J.035, by adding
a subdivision; 116J.551, subdivision 1; 181.723, subdivision 5; 182.6553,
subdivision 6; 268A.15, subdivision 4; 326B.04, subdivision 2; 326B.091;
326B.098; 326B.13, subdivision 8; 326B.148, subdivision 1; 326B.42,
subdivisions 8, 9, 10, by adding subdivisions; 326B.435, subdivision 2;
326B.438; 326B.46, subdivisions 1, 1a, 1b, 2, 3; 326B.47, subdivisions 1, 3;
326B.49, subdivision 1; 326B.56, subdivision 1; 326B.58; 326B.82, subdivisions
2, 3, 7, 9; 326B.821, subdivisions 1, 5, 5a, 6, 7, 8, 9, 10, 11, 12, 15, 16, 18, 19,
20, 22, 23; 326B.865; 326B.89, subdivisions 6, 8; 327.32, subdivisions 1a, 1b,
1e, 1f, 7; 327.33, subdivision 2; 327C.095, subdivision 12; 341.321; Laws 2009,
chapter 78, article 1, section 18; proposing coding for new law in Minnesota
Statutes, chapters 116J; 326B; repealing Minnesota Statutes 2010, sections
326B.82, subdivisions 4, 6; 326B.821, subdivision 3; Laws 2007, chapter 135,
article 2, section 34.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS



Section 1. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING
APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2012
2013
Total

General
$
87,189,000
$
82,189,000
$
169,378,000

Workforce Development
17,451,000
17,451,000
34,902,000

Remediation
700,000
700,000
1,400,000

Workers' Compensation
22,574,000
22,574,000
45,148,000

Total
$
127,914,000
$
122,914,000
$
250,828,000


Sec. 2. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING.
    The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2012" and "2013" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2012, or
June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
year 2013. "The biennium" is fiscal years 2012 and 2013.

APPROPRIATIONS

Available for the Year

Ending June 30

2012
2013



Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.Total Appropriation
$
61,198,000
$
56,198,000

Appropriations by Fund

2012
2013

General
44,076,000
39,076,000

Remediation
700,000
700,000


Workforce
Development
16,422,000
16,422,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.


Subd. 2.Business and Community
Development
13,281,000
8,281,000

Appropriations by Fund

General
12,242,000
7,242,000

Remediation
700,000
700,000


Workforce
Development
339,000
339,000
(a) $700,000 the first year and $700,000 the
second year are from the remediation fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. This appropriation is available
until expended.
(b) $1,022,000 the first year and $1,022,000
the second year are from the general fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. The base funding for this program
is $1,272,000 each year beginning in fiscal
year 2014 and thereafter.
(c) $150,000 the first year is from the general
fund for a grant to WomenVenture for
women's business development programs
and for programs that encourage and assist
women to enter nontraditional careers in the
trades; manual and technical occupations;
science, technology, engineering, and
mathematics-related occupations; and green
jobs. This appropriation may be matched
dollar for dollar with any resources available
from the federal government for these
purposes with priority given to initiatives
that have a goal of increasing by at least ten
percent the number of women in occupations
where women currently comprise less than
25 percent of the workforce. This is a
onetime appropriation.
(d) $79,000 the first year is from the general
fund and $50,000 the first year is from the
workforce development fund for a grant to
the Metropolitan Economic Development
Association for continuing minority business
development programs in the metropolitan
area. This appropriation must be used for the
sole purpose of providing free or reduced
fee business consulting services to minority
entrepreneurs and contractors. This is a
onetime appropriation.
(e)(1) $356,000 the first year is a onetime
appropriation from the general fund for a
grant to BioBusiness Alliance of Minnesota
for bioscience business development
programs to promote and position the state
as a global leader in bioscience business
activities. These funds may be used to create,
recruit, retain, and expand biobusiness
activity in Minnesota; implement the
destination 2025 statewide plan; update
a statewide assessment of the bioscience
industry and the competitive position of
Minnesota-based bioscience businesses
relative to other states and other nations;
and develop and implement business and
scenario-planning models to create, recruit,
retain, and expand biobusiness activity in
Minnesota.
(2) The BioBusiness Alliance must report
each year by February 15 to the committees
of the house of representatives and the senate
having jurisdiction over bioscience industry
activity in Minnesota on the use of funds;
the number of bioscience businesses and
jobs created, recruited, retained, or expanded
in the state since the last reporting period;
the competitive position of the biobusiness
industry; and utilization rates and results of
the business and scenario-planning models
and outcomes resulting from utilization of
the business and scenario-planning models.
(f) $37,000 the first year is from the general
fund for a grant to the Minnesota Inventors
Congress, of which at least $3,700 must be
used for youth inventors. This is a onetime
appropriation.
(g)(1) $100,000 the first year is from the
workforce development fund for a grant
under Minnesota Statutes, section 116J.421,
to the Rural Policy and Development
Center at St. Peter, Minnesota. The grant
shall be used for research and policy
analysis on emerging economic and social
issues in rural Minnesota, to serve as a
policy resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions, to
provide interdisciplinary team approaches
to research and problem-solving in rural
communities, and to administer overall
operations of the center. This is a onetime
appropriation.
(2) The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a nonstate dollar.
Acceptable matching funds are nonstate
contributions that the center has received and
have not been used to match previous state
grants. Any funds not spent the first year are
available the second year.
(h) $189,000 the first year is from
the workforce development fund for
entrepreneur and small business development
direct professional business assistance in
Blue Earth, Brown, Faribault, Le Sueur,
Martin, Nicollet, Sibley, Watonwan, and
Waseca Counties. These services must
include, but are not limited to, preventure
assistance for individuals considering
starting a business. Funds must be awarded
to an organization or organizations that can
demonstrate leverage of at least an equal
amount of federal funds. Any balance in the
first year does not cancel but is available in
the second year. The grant recipient must
report to the commissioner by February 1
of each year that the organization receives
a grant with the number of customers
served; the amount of direct consulting hours
delivered; the number of new businesses
started; the amount of capital accessed for
business start-up or expansion; and the
number of jobs created and retained in each
county. The commissioner must report to
the house of representatives and senate
committees with jurisdiction over economic
development finance on the effectiveness
of these programs for assisting in the
development of entrepreneurs and small
businesses. This is a onetime appropriation.
(i) $757,000 the second year is from the
general fund and $339,000 the second year
is from the workforce development fund for
the business development competitive grant
pilot program.
(1) The commissioner shall develop and
implement a competitive grant program
for business development assistance
and services including, but not limited
to: minority business development,
women's business development, rural
business development, bioscience business
development, entrepreneur development,
and services to inventors. Of this amount,
up to five percent is for administration and
monitoring of the business development
competitive grant program.
(2) The commissioner must report to the
legislative committees having jurisdiction
over economic development issues by
January 10 each year on the following:
methodologies and processes for soliciting
and evaluating grant proposals; criteria and
methodology for selecting grant recipients;
methods and procedures for monitoring the
use of grant awards including expenditures
for administrative expenses by grant
recipients; and methods for measuring
outcomes and accomplishments of grant
recipients including but not limited to the
total number of new jobs created by each
grant recipient, average wage of new jobs
created, amount of private funds leveraged,
number of new businesses created and the
number of new jobs per business, return
on investment to the state, and ongoing
solicitation and feedback from interested
parties regarding ongoing improvement
and enhancement to the competitive grant
program. The commissioner must also report
on department expenditures related to the
administration and monitoring of grants
under this subdivision.
(j) $1,492,000 each year is from the general
fund for the Minnesota Trade Office.
(k) $3,000,000 the first year is from the
general fund for the Minnesota investment
fund under Minnesota Statutes, section
116J.8731. This is a onetime appropriation
and is available until spent.
(l) $2,000,000 the first year is from the
general fund for grants under Minnesota
Statutes, section 116J.571, for the
redevelopment program. This is a onetime
appropriation and is available until spent.
(m) $135,000 the first year is from the general
fund for a grant to Advocating Change
Together for training, technical assistance,
and resource materials for persons with
developmental and mental illness disabilities.
This is a onetime appropriation.
(n) $250,000 each year is from the general
fund for a grant to Enterprise Minnesota, Inc.,
for the small business growth acceleration
program under Minnesota Statutes, section
116O.115. This is a onetime appropriation.

Subd. 3.Workforce Development
46,898,000
46,898,000

Appropriations by Fund

General
30,815,000
30,815,000


Workforce
Development
16,083,000
16,083,000
(a) $4,196,000 each year is from the general
fund for the Minnesota job skills partnership
program under Minnesota Statutes, sections
116L.01 to 116L.17. If the appropriation for
either year is insufficient, the appropriation
for the other year is available. This
appropriation is available until spent.
(b) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.
(c) $5,928,000 each year is from the general
fund for the state services for the blind
activities.
(d) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
(e) $315,000 the first year is from the general
fund and $105,000 the first year is from the
workforce development fund for a grant
under Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide training to
hard-to-train individuals. This is a onetime
appropriation.
(f) $135,000 the first year is from the general
fund and $50,000 the first year is from the
workforce development fund for a grant
to Northern Connections in Perham to
implement and operate a workforce program
that provides one-stop supportive services
to individuals as they transition into the
workforce. This is a onetime appropriation.
(g) $5,245,000 each year is from the general
fund and $6,830,000 each year is from the
workforce development fund for extended
employment services for persons with severe
disabilities or related conditions under
Minnesota Statutes, section 268A.15. Of
the general fund appropriation, $125,000
each year is to supplement funds paid for
wage incentives for the community support
fund established in Minnesota Rules, part
3300.2045. Notwithstanding Minnesota
Rules, parts 3300.2030 to 3300.2055, the
commissioner may adjust contracts with
eligible extended employment providers in
order to achieve required reductions through
June 30, 2013.
(h) $1,555,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14. Grants
may be used for special projects for young
people with mental illness transitioning from
school to work and people with serious
mental illness receiving services through
a mental health court or civil commitment
court. Special projects must demonstrate
interagency collaboration.
(i) $130,000 the first year is from the general
fund and $175,000 the first year is from the
workforce development fund for a grant
under Minnesota Statutes, section 268A.03,
to Rise, Inc. for the Minnesota Employment
Center for People Who are Deaf or Hard
of Hearing. Money not expended the first
year is available the second year. This is a
onetime appropriation.
(j) $90,000 the first year is from the general
fund and $200,000 the first year is from the
workforce development fund for a grant to
Lifetrack Resources for its immigrant and
refugee collaborative program, including
those related to job-seeking skills and
workplace orientation, intensive job
development, functional work English, and
on-site job coaching. This appropriation may
also be used in Rochester. This is a onetime
appropriation.
(k) $1,375,000 the first year is from the
workforce development fund for the
Opportunities Industrialization Center
programs. The OIC State Council must
not be colocated with the Department of
Employment and Economic Development.
Of this amount, $3,000 may be used for
relocation expenses. This is a onetime
appropriation.
(l) $160,000 the first year is from the general
fund for a grant to Minnesota Diversified
Industries, Inc., to provide progressive
development and employment opportunities
for people with disabilities. This is a onetime
appropriation.
(m) $830,000 the second year is from the
general fund and $1,905,000 the second year
is from the workforce development fund for
the adult workforce development competitive
grant pilot program.
(1) The commissioner in consultation with
the Governor's Workforce Development
Council shall develop and implement
a competitive grant program for adult
workforce development activities including,
but not limited to: job training, job search,
job placement, preemployment and job
readiness skills, progressive development
and employment opportunities for people
with disabilities, employment services
targeted to people who are deaf or hard of
hearing, and transition to work from public
assistance. Of this amount, up to five percent
is for administration and monitoring of the
adult workforce development competitive
grant pilot program.
(2) The commissioner must report to the
legislative committees having jurisdiction
over economic development issues by
January 10 each year on the following:
methodologies and processes for soliciting
and evaluating grant proposals; criteria and
methodology for selecting grant recipients;
methods and procedures for monitoring the
use of grant awards including expenditures
for administrative expenses by grant
recipients; and methods for measuring
outcomes and accomplishments of grant
recipients including but not limited to the
total number of job placements by each grant
recipient, average wage of jobs in which
clients served by grant recipients are placed,
specific job skills developed and measures
of improved employability or employment
opportunities by the clients of the grant
recipients, amount of private funds leveraged,
return on investment to the state, and ongoing
solicitation and feedback from interested
parties regarding ongoing improvement
and enhancement to the competitive grant
program. The commissioner must also report
on department expenditures related to the
administration and monitoring of grants
under this subdivision.
(n) $3,500,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.
(o) $900,000 the first year is a onetime
appropriation from the workforce
development fund for grants for the
Minneapolis summer youth employment
program. The commissioner shall establish
criteria for awarding the grant.
(p) $300,000 the first year is from the
workforce development fund for a grant to
the Minneapolis learn-to-earn summer youth
employment program. This is a onetime
appropriation.
(q) $750,000 the first year is a onetime
appropriation from the workforce
development fund for a grant to the
Minnesota Alliance of Boys and Girls
Clubs to administer a statewide project
of youth jobs skills development. This
project, which may have career guidance
components, including health and life skills,
is to encourage, train, and assist youth in
job-seeking skills, workplace orientation,
and job site knowledge through coaching.
This grant requires a 25 percent match from
nonstate resources.
(r) $558,000 the first year is a onetime
appropriation from the workforce
development fund for grants to fund summer
youth employment in St. Paul. The
commissioner shall establish criteria for
awarding the grant.
(s) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota
Statutes, sections 116L.361 to 116L.366.
(t) $340,000 the first year is a onetime
appropriation from the workforce
development fund for grants to provide
interpreters for a regional transition program
that specializes in providing culturally
appropriate transition services leading to
employment for deaf, hard-of-hearing, and
deafblind students.
(u) $2,848,000 the second year is from the
workforce development fund for the youth
workforce development competitive grant
pilot program.
(1) The commissioner in consultation with
the Governor's Workforce Development
Council shall develop and implement a
competitive grant program to provide
workforce development activities and
training to youth in Minnesota. Of
this amount, up to five percent is for
administration and monitoring of the youth
workforce development competitive grant
pilot program.
(2) The commissioner must report to the
legislative committees having jurisdiction
over economic development issues by
January 10 each year on the following:
methodologies and processes for soliciting
and evaluating grant proposals; criteria and
methodology for selecting grant recipients;
methods and procedures for monitoring the
use of grant awards including expenditures
for administrative expenses by grant
recipients; and methods for measuring
outcomes and accomplishments of grant
recipients including but not limited to the
total number of youth served by each grant
recipient, number of job placements, job
search, training or placement services,
education or other employment-related
services, preemployment skill development,
average wage of jobs, amount of private
funds leveraged, return on investment
to the state, and ongoing solicitation
and feedback from interested parties
regarding ongoing improvement and
enhancement to the competitive grant
program. The commissioner must also report
on department expenditures related to the
administration and monitoring of grants
under this subdivision.
(3) In awarding grants under this subdivision,
consideration must be given to programs that
target deaf, hard of hearing, and deaf/blind
students.

Subd. 4.State-Funded Administration
1,019,000
1,019,000

Subd. 5.Competitive Grant Limitations
An organization that receives a direct
appropriation under this section is not
eligible to participate in competitive grant
programs established under this section
during the fiscal years in which the direct
appropriations are received.


Sec. 4. HOUSING FINANCE AGENCY

Subdivision 1.Total Appropriation
$
38,048,000
$
38,048,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.
This appropriation is for transfer to the
housing development fund for the programs
specified. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

Subd. 2.Challenge Program
6,955,000
6,955,000
For the economic development and housing
challenge program under Minnesota
Statutes, section 462A.33. Of this amount,
$1,208,000 each year shall be made available
during the first eight months of the fiscal
year exclusively for housing projects for
American Indians. Any funds not committed
to housing projects for American Indians in
the first eight months of the fiscal year shall
be available for any eligible activity under
Minnesota Statutes, section 462A.33.

Subd. 3.Housing Trust Fund
9,555,000
9,555,000
For deposit in the housing trust fund account,
for the purposes provided under Minnesota
Statutes, section 462A.201.

Subd. 4.Rental Assistance for Mentally Ill
2,638,000
2,638,000
For the rental housing assistance program for
persons with a mental illness or families with
an adult member with a mental illness under
Minnesota Statutes, section 462A.2097.

Subd. 5.Family Homeless Prevention
7,465,000
7,465,000
For the family homeless prevention and
assistance programs under Minnesota
Statutes, section 462A.204.

Subd. 6.Home Ownership Assistance Fund
797,000
797,000
For the home ownership assistance program
under Minnesota Statutes, section 462A.21,
subdivision 8.

Subd. 7.Affordable Rental Investment Fund
7,313,000
7,313,000
(a) For the affordable rental investment fund
program under Minnesota Statutes, section
462A.21, subdivision 8b. The appropriation
is to finance the acquisition, rehabilitation,
and debt restructuring of federally assisted
rental property and for making equity
take-out loans under Minnesota Statutes,
section 462A.05, subdivision 39.
(b) The owner of federally assisted rental
property must agree to participate in
the applicable federally assisted housing
program and to extend any existing
low-income affordability restrictions on the
housing for the maximum term permitted.
The owner must also enter into an agreement
that gives local units of government,
housing and redevelopment authorities,
and nonprofit housing organizations the
right of first refusal if the rental property
is offered for sale. Priority must be given
among comparable federally assisted rental
properties to properties with the longest
remaining term under an agreement for
federal assistance. Priority must also be
given among comparable rental housing
developments to developments that are or
will be owned by local government units, a
housing and redevelopment authority, or a
nonprofit housing organization.
(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and
debt restructuring of existing supportive
housing properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals, youth, and
families with children to maintain housing
stability.

Subd. 8.Housing Rehabilitation
2,449,000
2,449,000
For the housing rehabilitation program
under Minnesota Statutes, section 462A.05,
subdivision 14, for rental housing
developments.


Subd. 9.Homeownership Education,
Counseling, and Training
751,000
751,000
For the homeownership education,
counseling, and training program under
Minnesota Statutes, section 462A.209.
Notwithstanding Minnesota Statutes, section
462A.209, subdivision 7, paragraph (b),
more than one-half of the funds awarded
for foreclosure prevention and assistance
activities may be used for mortgage or
financial counseling services.

Subd. 10.Capacity-Building Grants
125,000
125,000
For nonprofit capacity-building grants
under Minnesota Statutes, section 462A.21,
subdivision 3b.



Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY

Subdivision 1.Total Appropriation
$
22,717,000
$
22,717,000

Appropriations by Fund

2012
2013

General
817,000
817,000


Workers'
Compensation
20,871,000
20,871,000


Workforce
Development
1,029,000
1,029,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Workers' Compensation
14,832,000
14,832,000
This appropriation is from the workers'
compensation fund.
$200,000 each year is for grants to the
Vinland Center for rehabilitation services.
Grants shall be distributed as the department
refers injured workers to the Vinland Center
for rehabilitation services.

Subd. 3.Labor Standards and Apprenticeship
1,846,000
1,846,000

Appropriations by Fund

General
817,000
817,000


Workforce
Development
1,029,000
1,029,000
(a) $817,000 each year is from the
general fund for the labor standards and
apprenticeship program.
(b) $879,000 each year is appropriated from
the workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178, and includes $100,000
for labor education and advancement
program grants and to expand and promote
registered apprenticeship training in
nonconstruction trade programs.
(c) $150,000 each year is appropriated
from the workforce development fund for
prevailing wage enforcement.

Subd. 4.General Support
6,039,000
6,039,000
This appropriation is from the workers'
compensation fund.



Sec. 6. BUREAU OF MEDIATION
SERVICES

Subdivision 1.Total Appropriation
$
1,584,000
$
1,584,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Mediation Services
1,516,000
1,516,000


Subd. 3.Labor Management Cooperation
Grants
68,000
68,000
$68,000 each year is for grants to area labor
management committees. Grants may be
awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.



Sec. 7. WORKERS' COMPENSATION
COURT OF APPEALS
$
1,703,000
$
1,703,000
This appropriation is from the workers'
compensation fund.


Sec. 8. BOARD OF ACCOUNTANCY
$
480,000
$
480,000





Sec. 9. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
774,000
$
774,000



Sec. 10. BOARD OF COSMETOLOGIST
EXAMINERS
$
1,046,000
$
1,046,000


Sec. 11. BOARD OF BARBER EXAMINERS
$
257,000
$
257,000



Sec. 12. MINNESOTA SCIENCE AND
TECHNOLOGY AUTHORITY
$
107,000
$
107,000


Sec. 13. TRANSFERS
The unexpended balance as of June 30,
2011, estimated to be $1,575,000, of funds
collected for unemployment insurance state
administration under Minnesota Statutes,
section 268.18, is transferred to the general
fund before the closing of fiscal year 2011.
In fiscal years 2012 and 2013, the
unexpended balance of funds collected for
unemployment insurance state administration
under Minnesota Statutes, section 268.18,
estimated to be $900,000 each year, is
transferred to the general fund before the
closing of each fiscal year.
The deposits in each year of the biennium
into the contingent account created under
Minnesota Statutes, section 268.199,
estimated to be $6,450,000 each year, shall
be transferred before the closing of each
fiscal year to the general fund.

ARTICLE 2
MISCELLANEOUS ECONOMIC DEVELOPMENT PROVISIONS

    Section 1. Minnesota Statutes 2010, section 116J.035, is amended by adding a
subdivision to read:
    Subd. 7. Monitoring pass-through grant recipients. The commissioner shall
monitor the activities and outcomes of programs and services funded by legislative
appropriations and administered by the department on a pass-through basis. Unless
amounts are otherwise appropriated for administrative costs, the commissioner may
retain up to five percent of the amount appropriated to the department for grants to
pass-through entities. Amounts retained are deposited to a special revenue account and
are appropriated to the commissioner for costs incurred in administering and monitoring
the pass-through grants.

    Sec. 2. Minnesota Statutes 2010, section 116J.551, subdivision 1, is amended to read:
    Subdivision 1. Grant account. A contaminated site cleanup and development grant
account is created in the special revenue fund, general fund, petroleum tank fund, and
remediation fund. Money in the any account may be used, as appropriated by law, to make
grants as provided in section 116J.554 and to pay for the commissioner's costs in reviewing
applications and making grants. Notwithstanding section 16A.28, money appropriated to
the account accounts for this program from any source is available until spent.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2010.

    Sec. 3. [116J.881] SMALL BUSINESS LOAN GUARANTEE PROGRAM.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given.
(b) "Borrower" means a small business receiving an eligible loan under this section.
(c) "Commissioner" means the commissioner of employment and economic
development.
(d) "Eligible loan" means a loan to a small business to be used for business
purposes exclusively in Minnesota, including: construction; remodeling or renovation;
leasehold improvements; the purchase of land and buildings; business acquisitions,
including employee stock ownership plan financing; machinery or equipment purchases,
maintenance, or repair; expenses related to moving into or within Minnesota; and working
capital when the working capital is secured by fixed assets.
(e) "Loan guarantee" means a guarantee of 70 percent of the loan amount provided
by a QED lender. The guaranteed portion of the loan must not exceed $1,500,000.
(f) "Loan guarantee trust fund" means a dedicated fund established under this
section for the purpose of compensation for defaulted loan guarantees and for program
administration.
(g) "Loan purchaser" means an institutional investor that purchases, holds, and
services small business loans on a nonrecourse basis from QED lenders participating in
the small business loan guarantee program.
(h) "Qualified economic development lender" or "QED lender" means a public entity
or a private nonprofit economic development organization whose headquarters is located
in Minnesota with not less than three years of active lending experience that provides
financing to small businesses in partnership with banks and other commercial lenders, and
that originates subordinated loans to small businesses for sale to the secondary market.
(i) "Secondary market" means the market in which loans are sold to investors, either
directly or through an intermediary.
(j) "Small business" means a business employing no more than 500 persons in
Minnesota.
(k) "Subordinated loan" means a loan secured by a lien that is lower in priority than
one or more specified other liens.
    Subd. 2. Loan guarantee program. A small business loan guarantee program to
support the origination and sale of eligible subordinated loans to the secondary market by
providing a credit enhancement in the form of a partial guarantee of small business loans
that are made to Minnesota businesses by a QED lender is created in the Department of
Employment and Economic Development. A loan guarantee shall be provided for eligible
loans under this section only when a bank or other commercial lender provides at least 50
percent of the total amount loaned to the small business. The loan guarantee shall apply
only to the portion of the loan that was made by the QED lender.
    Subd. 3. Required provisions. Loan guarantees under this section for loans to be
sold on the secondary market by QED lenders shall provide that:
(1) principal and interest payments made by the borrower under the terms of the loan
are applied by the loan purchaser to reduce the guaranteed and nonguaranteed portion of
the loan on a proportionate basis. The nonguaranteed portion shall not receive preferential
treatment over the guaranteed portion;
(2) the loan purchaser shall not accelerate repayment of the loan or exercise other
remedies if the borrower defaults, unless:
(i) the borrower fails to make a required payment of principal or interest;
(ii) the commissioner consents in writing; or
(iii) the loan guarantee agreement provides for accelerated repayment or other
remedies.
In the event of a default, the loan purchaser may not make a demand for payment
pursuant to the guarantee unless the commissioner agrees in writing that the default has
materially affected the rights or security of the parties, and finds that the loan purchaser is
entitled to receive payment pursuant to the loan guarantee;
(3) there is a written commitment from one or more secondary market investors to
purchase the loan, subject to the provision of a state loan guarantee;
(4) the QED lender has timely prepared and delivered to the commissioner, annually
by the date specified in the loan guarantee, an audited or reviewed financial statement
for the loan, prepared by a certified public accountant according to generally accepted
accounting principles, and documentation that the borrower used the loan proceeds solely
for purposes of its Minnesota operations;
(5) the commissioner has access to the original loan documents prior to approval of
the state credit enhancement to facilitate the sale of the loan to the secondary market;
(6) the QED lender maintains adequate records and documents concerning the
original loan so that the commissioner may determine the borrower's financial condition
and compliance with program requirements; and
(7) orderly liquidation of collateral securing the original loan is provided for in
the event of default, with an option on the part of the commissioner to acquire the loan
purchaser's interest in the assets pursuant to the loan guarantee.
    Subd. 4. Loan guarantee trust fund established. A loan guarantee trust fund
account in the special revenue fund is created in the state treasury to pay for defaulted
loan guarantees. The commissioner shall administer this fund and provide annual reports
concerning the performance of the fund to the chairs of the standing committees of the
house of representatives and senate having jurisdiction over economic development issues.
    Subd. 5. Limitation. At no time shall total outstanding loan guarantees for loans
sold to the secondary market exceed five times the amount on deposit in the loan guarantee
trust fund.
    Subd. 6. Guarantee fee. Participating QED lenders shall pay a fee to the fund of
0.25 percent of the principal amount of each guaranteed loan upon approval of each loan
guarantee. The guarantee fee, along with any interest earnings from the trust fund, shall
be used only for the administration of the small business loan guarantee program and
as additional loan loss reserves.
    Subd. 7. Loan guarantee application. The commissioner shall prepare a form for
QED lenders to use in applying for loan guarantees under this section. The form shall
include the following information:
(1) the name and contact information for the QED lender, including the name and
title of a contact person;
(2) the names of the financial institutions, including the names and titles of contact
persons, that are participating in the total financing being provided to the small business
borrower, along with the dollar amount of the loan provided by the financial institution;
(3) the percentage and dollar amount of the subordinated debt loan provided to the
Minnesota small business by the QED lender; and
(4) the loan guarantee amount that is requested from the program.
    Subd. 8. Notice and application process. Subject to the availability of funds under
subdivision 4, the commissioner shall publish a notice regarding the opportunity for QED
lenders to originate loans for which the loan guarantee may be secured as the loans are
prepared for sale to the secondary market. The commissioner shall decide whether to
provide a loan guarantee for each loan based on:
(1) the completeness of the loan guarantee application;
(2) the availability of funds in the loan guarantee trust fund; and
(3) execution of agreements that satisfy requirements established in subdivision 3.

    Sec. 4. Minnesota Statutes 2010, section 268A.15, subdivision 4, is amended to read:
    Subd. 4. Evaluation. The commissioner of employment and economic development
shall evaluate the extended employment program to determine whether the purpose of
extended employment as defined in subdivision 2 is being achieved. The evaluation
must include information for the preceding funding year derived from the independent
compliance audits of extended employment service providers submitted to the department
on or before October 31 of each year. The evaluation must include an assessment
of whether workers in the extended employment program are satisfied with their
employment. A written report of this evaluation must be prepared at least every two years
and made available to the public.

    Sec. 5. Minnesota Statutes 2010, section 341.321, is amended to read:
341.321 FEE SCHEDULE.
    (a) The fee schedule for professional licenses issued by the commission is as follows:
    (1) referees, $25 $45 for each initial license and each renewal;
    (2) promoters, $400 for each initial license and each renewal;
    (3) judges and knockdown judges, $25 $45 for each initial license and each renewal;
    (4) trainers, $25 $45 for each initial license and each renewal;
    (5) ring announcers, $25 $45 for each initial license and each renewal;
    (6) seconds, $25 $45 for each initial license and each renewal;
    (7) timekeepers, $25 $45 for each initial license and each renewal;
    (8) combatants, $25 $45 for each initial license and each renewal;
    (9) managers, $25 $45 for each initial license and each renewal; and
    (10) ringside physicians, $25 $45 for each initial license and each renewal.
In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
2, if applicable, an individual who applies for a combatant professional license on the
same day the combative sporting event is held shall pay a late fee of $100 plus the original
license fee of $45 at the time the application is submitted.
    (b) The fee schedule for amateur licenses issued by the commission is as follows:
    (1) referees, $10 $45 for each initial license and each renewal;
    (2) promoters, $100 $400 for each initial license and each renewal;
    (3) judges and knockdown judges, $10 $45 for each initial license and each renewal;
    (4) trainers, $10 $45 for each initial license and each renewal;
    (5) ring announcers, $10 $45 for each initial license and each renewal;
    (6) seconds, $10 $45 for each initial license and each renewal;
    (7) timekeepers, $10 $45 for each initial license and each renewal;
    (8) combatant, $10 $25 for each initial license and each renewal;
    (9) managers, $10 $45 for each initial license and each renewal; and
    (10) ringside physicians, $10 $45 for each initial license and each renewal.
    (c) The commission shall establish a contest fee for each combative sport contest.
The professional combative sport contest fee is $1,500 per event or not more than four
percent of the gross ticket sales, whichever is greater, as determined by the commission
when the combative sport contest is scheduled, except that the amateur combative sport
contest fee shall be $150 $500 or not more than four percent of the gross ticket sales,
whichever is greater. The commission shall consider the size and type of venue when
establishing a contest fee. The commission may establish the maximum number of
complimentary tickets allowed for each event by rule. An A professional or amateur
combative sport contest fee is nonrefundable.
    (d) All fees and penalties collected by the commission must be deposited in the
commission account in the special revenue fund.

    Sec. 6. Laws 2009, chapter 78, article 1, section 18, is amended to read:


Sec. 18. COMBATIVE SPORTS
COMMISSION
$
80,000
$
80,000
This is a onetime appropriation. The
Combative Sports Commission expires on
July 1, 2011, unless the commissioner of
finance determines that the commission's
projected expenditures for the fiscal biennium
ending June 30, 2013, will not exceed the
commission's projected revenues for the
fiscal biennium ending June 30, 2013, from
fees and penalties authorized in Minnesota
Statutes 2008, chapter 341.

    Sec. 7. REPEALER.
Laws 2007, chapter 135, article 2, section 34, is repealed.

ARTICLE 3
LABOR AND INDUSTRY

    Section 1. Minnesota Statutes 2010, section 181.723, subdivision 5, is amended to read:
    Subd. 5. Application. To obtain an independent contractor exemption certificate,
the individual must submit, in the manner prescribed by the commissioner, a complete
application and the certificate fee required under subdivision 14.
    (a) A complete application must include all of the following information:
    (1) the individual's full name;
    (2) the individual's residence address and telephone number;
    (3) the individual's business name, address, and telephone number;
    (4) the services for which the individual is seeking an independent contractor
exemption certificate;
    (5) the individual's Social Security number;
    (6) the individual's or the individual's business federal employer identification
number, if a number has been issued to the individual or the individual's business;
    (7) any information or documentation that the commissioner requires by rule that
will assist the department in determining whether to grant or deny the individual's
application; and
    (8) the individual's sworn statement that the individual meets all of the following
conditions:
    (i) maintains a separate business with the individual's own office, equipment,
materials, and other facilities;
    (ii) holds or has applied for a federal employer identification number or has filed
business or self-employment income tax returns with the federal Internal Revenue Service
if the person has performed services in the previous year for which the individual is
seeking the independent contractor exemption certificate;
    (iii) operates under contracts to perform specific services for specific amounts of
money and under which the individual controls the means of performing the services;
    (iv) incurs the main expenses related to the service that the individual performs
under contract;
    (v) is responsible for the satisfactory completion of services that the individual
contracts to perform and is liable for a failure to complete the service;
    (vi) receives compensation for service performed under a contract on a commission
or per-job or competitive bid basis and not on any other basis;
    (vii) may realize a profit or suffer a loss under contracts to perform service;
    (viii) has continuing or recurring business liabilities or obligations; and
    (ix) the success or failure of the individual's business depends on the relationship of
business receipts to expenditures.
    (b) Individuals who are applying for or renewing a residential building contractor or
residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81,
326B.815, 326B.821
to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules
promulgated pursuant thereto, may simultaneously apply for or renew an independent
contractor exemption certificate. The commissioner shall create an application form
that allows for the simultaneous application for both a residential building contractor
or residential remodeler license and an independent contractor exemption certificate.
If individuals simultaneously apply for or renew a residential building contractor or
residential remodeler license and an independent contractor exemption certificate using
the form created by the commissioner, individuals shall only be required to provide, in
addition to the information required by section 326B.83 and rules promulgated pursuant
thereto, the sworn statement required by paragraph (a), clause (8), and any additional
information required by this subdivision that is not also required by section 326B.83
and any rules promulgated thereto. When individuals submit a simultaneous application
on the form created by the commissioner for both a residential building contractor or
residential remodeler license and an independent contractor exemption certificate, the
application fee shall be $150. An independent contractor exemption certificate that is in
effect before March 1, 2009, shall remain in effect until March 1, 2013, unless revoked by
the commissioner or canceled by the individual.
    (c) Within 30 days of receiving a complete application and the certificate fee, the
commissioner must either grant or deny the application. The commissioner may deny
an application for an independent contractor exemption certificate if the individual has
not submitted a complete application and certificate fee or if the individual does not
meet all of the conditions for holding the independent contractor exemption certificate.
The commissioner may revoke an independent contractor exemption certificate if the
commissioner determines that the individual no longer meets all of the conditions for
holding the independent contractor exemption certificate, commits any of the actions
set out in subdivision 7, or fails to cooperate with a department investigation into the
continued validity of the individual's certificate. Once issued, an independent contractor
exemption certificate remains in effect for four years unless:
    (1) revoked by the commissioner; or
    (2) canceled by the individual.
    (d) If the department denies an individual's original or renewal application for
an independent contractor exemption certificate or revokes an independent contractor
exemption certificate, the commissioner shall issue to the individual an order denying or
revoking the certificate. The commissioner may issue an administrative penalty order to
an individual or person who commits any of the actions set out in subdivision 7. The
commissioner may file and enforce the unpaid portion of a penalty as a judgment in
district court without further notice or additional proceedings.
    (e) An individual or person to whom the commissioner issues an order under
paragraph (d) shall have 30 days after service of the order to request a hearing. The
request for hearing must be in writing and must be served on or faxed to the commissioner
at the address or facsimile number specified in the order by the 30th day after service of
the order. If the individual does not request a hearing or if the individual's request for a
hearing is not served on or faxed to the commissioner by the 30th day after service of the
order, the order shall become a final order of the commissioner and will not be subject to
review by any court or agency. The date on which a request for hearing is served by mail
shall be the postmark date on the envelope in which the request for hearing is mailed. If
the individual serves or faxes a timely request for hearing, the hearing shall be a contested
case hearing and shall be held in accordance with chapter 14.

    Sec. 2. Minnesota Statutes 2010, section 182.6553, subdivision 6, is amended to read:
    Subd. 6. Enforcement. This section shall be enforced by the commissioner under
section sections 182.66 and 182.661. A violation of this section is subject to the penalties
provided under section 182.666.

    Sec. 3. Minnesota Statutes 2010, section 326B.04, subdivision 2, is amended to read:
    Subd. 2. Deposits. Unless otherwise specifically designated by law: (1) all money
collected under sections 144.122, paragraph (f); 181.723; 326B.092 to 326B.096;
326B.101
to 326B.194; 326B.197; 326B.32 to 326B.399; 326B.43 to 326B.49; 326B.52
to 326B.59; 326B.802 to 326B.885; 326B.90 to 326B.998; 327.31 to 327.36; and
327B.01 to 327B.12, except penalties, is credited to the construction code fund; (2) all
fees collected under section 45.23 sections 326B.098 to 326B.099 in connection with
continuing education for residential contractors, residential remodelers, and residential
roofers any license, registration, or certificate issued pursuant to this chapter are credited
to the construction code fund; and (3) all penalties assessed under the sections set forth
in clauses (1) and (2) and all penalties assessed under sections 144.99 to 144.993 in
connection with any violation of sections 326B.43 to 326B.49 or 326B.52 to 326B.59 or
the rules adopted under those sections are credited to the assigned risk safety account
established by section 79.253.

    Sec. 4. Minnesota Statutes 2010, section 326B.091, is amended to read:
326B.091 DEFINITIONS.
    Subdivision 1. Applicability. For purposes of sections 326B.091 to 326B.098
326B.099, the terms defined in this section have the meanings given them.
    Subd. 2. Applicant. "Applicant" means a person who has submitted to the
department an application for a an initial or renewal license.
    Subd. 3. License. "License" means any registration, certification, or other form
of approval authorized by this chapter 326B and chapter 327B to be issued by the
commissioner or department as a condition of doing business or conducting a trade,
profession, or occupation in Minnesota. License includes specifically but not exclusively
an authorization issued by the commissioner or department: to perform electrical work,
plumbing or water conditioning work, high pressure piping work, or residential building
work of a residential contractor, residential remodeler, or residential roofer; to install
manufactured housing; to serve as a building official; or to operate a boiler or boat.
    Subd. 4. Licensee. "Licensee" means the person named on the license as the person
authorized to do business or conduct the trade, profession, or occupation in Minnesota.
    Subd. 5. Notification date. "Notification date" means the date of the written
notification from the department to an applicant that the applicant is qualified to take the
examination required for licensure.
    Subd. 5b. Qualifying individual. "Qualifying individual" means the individual
responsible for obtaining continuing education on behalf of a residential building
contractor, residential remodeler, or residential roofer licensed pursuant to sections
326B.801 to 326B.885.
    Subd. 6. Renewal deadline. "Renewal deadline," when used with respect to a
license, means 30 days before the date that the license expires.

    Sec. 5. Minnesota Statutes 2010, section 326B.098, is amended to read:
326B.098 CONTINUING EDUCATION.
    Subdivision 1. Applicability Department seminars. This section applies to
seminars offered by the department for the purpose of allowing enabling licensees to meet
continuing education requirements for license renewal.
    Subd. 2. Rescheduling. An individual who is registered with the department to
attend a seminar may reschedule one time only, to attend the same seminar on a date
within one year after the date of the seminar the individual was registered to attend.
    Subd. 3. Fees nonrefundable. All seminar fees paid to the department are
nonrefundable except for any overpayment of fees or if the department cancels the seminar.

    Sec. 6. [326B.0981] CONTINUING EDUCATION; NONDEPARTMENT
SEMINARS.
This section applies to seminars that are offered by an entity other than the
department for the purpose of enabling licensees to meet continuing education
requirements for license renewal.

    Sec. 7. Minnesota Statutes 2010, section 326B.13, subdivision 8, is amended to read:
    Subd. 8. Effective date of rules. A rule to adopt or amend the State Building Code
is effective 180 days after the filing of the rule with the secretary of state under section
14.16 or 14.26 publication of the rule's notice of adoption in the State Register. The rule
may provide for a later effective date. The rule may provide for an earlier effective date
if the commissioner or board proposing the rule finds that an earlier effective date is
necessary to protect public health and safety after considering, among other things, the
need for time for training of individuals to comply with and enforce the rule.

    Sec. 8. Minnesota Statutes 2010, section 326B.148, subdivision 1, is amended to read:
    Subdivision 1. Computation. To defray the costs of administering sections
326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in
connection with the construction of or addition or alteration to buildings and equipment or
appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge
receipts to award grants for code research and development and education.
    If the fee for the permit issued is fixed in amount the surcharge is equivalent to
one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June
30, 2011 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5,
whichever amount is greater. For all other permits, the surcharge is as follows:
    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the
surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition,
or alteration;
    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths
mill (.0004) of the value between $1,000,000 and $2,000,000;
    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths
mill (.0003) of the value between $2,000,000 and $3,000,000;
    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth
mill (.0002) of the value between $3,000,000 and $4,000,000;
    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth
mill (.0001) of the value between $4,000,000 and $5,000,000; and
    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth
mill (.00005) of the value that exceeds $5,000,000.

    Sec. 9. Minnesota Statutes 2010, section 326B.42, is amended by adding a subdivision
to read:
    Subd. 1b. Backflow prevention rebuilder. A "backflow prevention rebuilder" is an
individual who is qualified by training prescribed by the Plumbing Board and possesses
a master or journeyman plumber's license to engage in the testing, maintenance, and
rebuilding of reduced pressure zone type backflow prevention assemblies as regulated by
the plumbing code.

    Sec. 10. Minnesota Statutes 2010, section 326B.42, is amended by adding a
subdivision to read:
    Subd. 1c. Backflow prevention tester. A "backflow prevention tester" is an
individual who is qualified by training prescribed by the Plumbing Board to engage in
the testing of reduced pressure zone type backflow prevention assemblies as regulated by
the plumbing code.

    Sec. 11. Minnesota Statutes 2010, section 326B.42, subdivision 8, is amended to read:
    Subd. 8. Plumbing contractor. "Plumbing contractor" means a licensed contractor
whose responsible licensed plumber individual is a licensed master plumber.

    Sec. 12. Minnesota Statutes 2010, section 326B.42, subdivision 9, is amended to read:
    Subd. 9. Responsible licensed plumber individual. A contractor's "responsible
licensed plumber individual" means the licensed master plumber or licensed restricted
master plumber designated in writing by the contractor in the contractor's license
application, or in another manner acceptable to the commissioner, as the individual
responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules
adopted under these sections and sections 326B.50 to 326B.59, and all orders issued
under section 326B.082.

    Sec. 13. Minnesota Statutes 2010, section 326B.42, subdivision 10, is amended to read:
    Subd. 10. Restricted plumbing contractor. "Restricted plumbing contractor"
means a licensed contractor whose responsible licensed plumber individual is a licensed
restricted master plumber.

    Sec. 14. Minnesota Statutes 2010, section 326B.435, subdivision 2, is amended to read:
    Subd. 2. Powers; duties; administrative support. (a) The board shall have the
power to:
    (1) elect its chair, vice-chair, and secretary;
    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
and containing such other provisions as may be useful and necessary for the efficient
conduct of the business of the board;
    (3) adopt the plumbing code that must be followed in this state and any plumbing
code amendments thereto. The plumbing code shall include the minimum standards
described in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board
shall adopt the plumbing code and any amendments thereto pursuant to chapter 14 and
as provided in subdivision 6, paragraphs (b), (c), and (d);
    (4) review requests for final interpretations and issue final interpretations as provided
in section 326B.127, subdivision 5;
    (5) adopt rules that regulate the licensure, certification, or registration of plumbing
contractors, journeymen, unlicensed individuals, master plumbers, restricted master
plumbers, restricted journeymen, restricted plumbing contractors, backflow prevention
rebuilders and testers, water conditioning contractors, and water conditioning installers,
and other persons engaged in the design, installation, and alteration of plumbing systems
or engaged in or working at the business of water conditioning installation or service, or
engaged in or working at the business of medical gas system installation, maintenance, or
repair, except for those individuals licensed under section 326.02, subdivisions 2 and 3.
The board shall adopt these rules pursuant to chapter 14 and as provided in subdivision
6, paragraphs (e) and (f);
(6) adopt rules that regulate continuing education for individuals licensed as master
plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman
plumbers, water conditioning contractors, and water conditioning installers, and for
individuals certified under sections 326B.437 and 326B.438. The board shall adopt these
rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e) and (f);
    (7) refer complaints or other communications to the commissioner, whether oral or
written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
order that the commissioner has the authority to enforce pertaining to code compliance,
licensure, or an offering to perform or performance of unlicensed plumbing services;
    (8) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;
    (9) approve license reciprocity agreements;
    (10) select from its members individuals to serve on any other state advisory council,
board, or committee; and
    (11) recommend the fees for licenses, registrations, and certifications.
Except for the powers granted to the Plumbing Board, the 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 promulgated pursuant
thereto.
    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
    (c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards created pursuant
to 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 of labor and industry shall
supply necessary office space and supplies to assist the board in its duties.

    Sec. 15. [326B.437] REDUCED PRESSURE BACKFLOW PREVENTION
REBUILDERS AND TESTERS.
(a) No person shall perform or offer to perform the installation, maintenance, repair,
replacement, or rebuilding of reduced pressure zone backflow prevention assemblies
unless the person obtains a plumbing contractor's license. An individual shall not engage
in the testing, maintenance, repair, or rebuilding of reduced pressure zone backflow
prevention assemblies, as regulated by the Plumbing Code, unless the individual is
certified by the commissioner as a backflow prevention rebuilder.
(b) An individual shall not engage in testing of a reduced pressure zone backflow
prevention assembly, as regulated by the Plumbing Code, unless the individual possesses a
backflow prevention rebuilder certificate or is certified by the commissioner as a backflow
prevention tester.
(c) Certificates are issued for an initial period of two years and must be renewed
every two years thereafter for as long as the certificate holder installs, maintains, repairs,
rebuilds, or tests reduced pressure zone backflow prevention assemblies. For purposes
of calculating fees under section 326B.092, an initial or renewed backflow prevention
rebuilder or tester certificate shall be considered an entry level license.
(d) The Plumbing Board shall adopt expedited rules under section 14.389 that are
related to the certification of backflow prevention rebuilders and backflow prevention
testers. Section 326B.13, subdivision 8, does not apply to these rules. Notwithstanding the
18-month limitation under section 14.125, this authority expires on December 31, 2014.
(e) The department shall recognize certification programs that are a minimum of 16
contact hours and include the passage of an examination. The examination must consist of
a practical and a written component. This paragraph expires when the Plumbing Board
adopts rules under paragraph (d).

    Sec. 16. Minnesota Statutes 2010, section 326B.438, is amended to read:
326B.438 MEDICAL GAS SYSTEMS.
    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
this subdivision have the meanings given them.
    (b) "Medical gas" means medical gas as defined under the National Fire Protection
Association NFPA 99C Standard on Gas and Vacuum Systems.
    (c) "Medical gas system" means a level 1, 2, or 3 piped medical gas and vacuum
system as defined under the National Fire Protection Association NFPA 99C Standard on
Gas and Vacuum Systems.
    Subd. 2. License and certification required. A No person shall perform or offer
to perform the installation, maintenance, or repair of medical gas systems unless the
person obtains a contractor license. An individual shall not engage in the installation,
maintenance, or repair of a medical gas system unless the person individual possesses
a current Minnesota master or journeyman plumber's license and is certified by the
commissioner under rules adopted by the Minnesota Plumbing Board. The certification
must be renewed annually biennially for as long as the certificate holder engages in the
installation, maintenance, or repair of medical gas and vacuum systems. If a medical gas
and vacuum system certificate is not renewed within 12 months after its expiration the
medical gas and vacuum certificate is permanently forfeited.
    Subd. 3. Exemptions. (a) A person An individual who on August 1, 2010, holds
possesses a valid certificate authorized by meeting the requirements of the American
Society of Sanitary Engineering (ASSE) Standard 6010 and is a qualified brazer in
accordance with standards recommended by the provisions required in the National
Fire Protection Association under NFPA (NFPA) 99C is exempt from the licensing
requirements of subdivision 2 and may install, maintain, and repair a medical gas system.
This exemption applies only if the person individual maintains a valid certification
authorized by the ASSE in accordance with ASSE Standard 6010 and the brazer
qualifications in NFPA 99C, and is certified by the commissioner under rules adopted by
the Minnesota Plumbing Board.
    (b) A person who on August 1, 2010, possesses a current Minnesota master or
journeyman plumber's license and a valid certificate authorized by the ASSE in accordance
with standards recommended by the National Fire Protection Association under NFPA
99C is exempt from the requirements of subdivision 2 and may install, maintain, and repair
a medical gas system. This exemption applies only if a person maintains a valid Minnesota
master or journeyman plumber's license and valid certification authorized by the ASSE.
    Subd. 4. Fees. The fee for a medical gas certificate For the purpose of calculating
fees under section 326B.092, an initial or renewed medical gas certificate issued by the
commissioner according to subdivision 2 is $30 per year shall be considered a journeyman
level license.
EFFECTIVE DATE.The requirement under subdivision 2 and subdivision 3 that a
master journeyman plumber or exempt individual must be certified by the commissioner
and the fee in subdivision 4 are not effective until 180 days after the Minnesota Plumbing
Board adopts rules.

    Sec. 17. Minnesota Statutes 2010, section 326B.46, subdivision 1, is amended to read:
    Subdivision 1. License required. (a) No individual shall engage in or work at
the business of a master plumber, restricted master plumber, journeyman plumber, and
restricted journeyman plumber unless licensed to do so by the commissioner. A license
is not required for individuals performing building sewer or water service installation
who have completed pipe laying training as prescribed by the commissioner. A master
plumber may also work as a journeyman plumber, a restricted journeyman plumber,
and a restricted master plumber. A journeyman plumber may also work as a restricted
journeyman plumber. Anyone not so licensed may do plumbing work which complies with
the provisions of the minimum standards prescribed by the Plumbing Board on premises
or that part of premises owned and actually occupied by the worker as a residence, unless
otherwise forbidden to do so by a local ordinance.
    (b) No person shall engage in the business of planning, superintending, or installing
plumbing or shall install plumbing in connection with the dealing in and selling of
plumbing material and supplies unless at all times a licensed master plumber, or in cities
and towns with a population of fewer than 5,000 according to the last federal census, a
restricted master plumber, who shall be responsible for proper installation, is in charge of
the plumbing work of the person.
(c) Except as provided in subdivision 2 1a, no person shall perform or offer to
perform plumbing work with or without compensation unless the person obtains a
contractor's license. A contractor's license does not of itself qualify its holder to perform
the plumbing work authorized by holding a master, journeyman, restricted master, or
restricted journeyman license.

    Sec. 18. Minnesota Statutes 2010, section 326B.46, subdivision 1a, is amended to read:
    Subd. 1a. Exemptions from licensing. (a) An individual without a contractor
license may do plumbing work on the individual's residence in accordance with
subdivision 1, paragraph (a).
(b) An individual who is an employee working on the maintenance and repair of
plumbing equipment, apparatus, or facilities owned or leased by the individual's employer
and which is within the limits of property owned or leased, and operated or maintained by
the individual's employer, shall not be required to maintain a contractor license as long
as the employer has on file with the commissioner a current certificate of responsible
person. The certificate must be signed by the responsible individual. The responsible
individual must be a master plumber or, in an area of the state that is not a city or town
with a population of more than 5,000 according to the last federal census, a restricted
master plumber,. The certificate must be signed by the responsible individual and must
state that the person signing the certificate is responsible for ensuring that the maintenance
and repair work performed by the employer's employees comply complies with sections
326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to
326B.59, and all orders issued under section 326B.082. The employer must pay a filing
fee to file a certificate of responsible person individual with the commissioner. The
certificate shall expire two years from the date of filing. In order to maintain a current
certificate of responsible person individual, the employer must resubmit a certificate of
responsible person individual, with a filing fee, no later than two years from the date of the
previous submittal. The filing of the certificate of responsible person individual does not
exempt any employee of the employer from the requirements of this chapter regarding
individual licensing as a plumber or registration as a plumber's apprentice.
(c) If a contractor employs a licensed plumber, the licensed plumber does not need a
separate contractor license to perform plumbing work on behalf of the employer within
the scope of the licensed plumber's license.
(d) A person may perform and offer to perform building sewer or water service
installation without a contractor's license if the person is in compliance with the bond and
insurance requirements of subdivision 2.

    Sec. 19. Minnesota Statutes 2010, section 326B.46, subdivision 1b, is amended to read:
    Subd. 1b. Employment of master plumber or restricted master plumber. (a)
Each contractor must designate a responsible licensed plumber, who shall be responsible
for the performance of all plumbing work in accordance with sections 326B.41 to
326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all
orders issued under section 326B.082. A plumbing contractor's responsible licensed
plumber individual must be a master plumber. A restricted plumbing contractor's
responsible licensed plumber individual must be a master plumber or a restricted master
plumber. A plumbing contractor license authorizes the contractor to offer to perform
and, through licensed and registered individuals, to perform plumbing work in all areas
of the state. A restricted plumbing contractor license authorizes the contractor to offer
to perform and, through licensed and registered individuals, to perform plumbing work
in all areas of the state except in cities and towns with a population of more than 5,000
according to the last federal census.
(b) If the contractor is an individual or sole proprietorship, the responsible licensed
plumber individual must be the individual, proprietor, or managing employee. If the
contractor is a partnership, the responsible licensed plumber individual must be a general
partner or managing employee. If the contractor is a limited liability company, the
responsible licensed plumber individual must be a chief manager or managing employee.
If the contractor is a corporation, the responsible licensed plumber individual must be
an officer or managing employee. If the responsible licensed plumber individual is a
managing employee, the responsible licensed plumber individual must be actively engaged
in performing plumbing work on behalf of the contractor, and cannot be employed in any
capacity as a plumber for any other contractor. An individual may be the responsible
licensed plumber individual for only one contractor.
(c) All applications and renewals for contractor licenses shall include a verified
statement that the applicant or licensee has complied with this subdivision.

    Sec. 20. Minnesota Statutes 2010, section 326B.46, subdivision 2, is amended to read:
    Subd. 2. Bond; insurance. As a condition of licensing, each contractor (a) The
bond and insurance requirements of paragraphs (b) and (c) apply to each person who
performs or offers to perform plumbing work within the state, including any person who
offers to perform or performs sewer or water service installation without a contractor's
license. If the person performs or offers to perform any plumbing work other than sewer
or water service installation, then the person must meet the requirements of paragraphs
(b) and (c) as a condition of holding a contractor's license.
(b) Each person who performs or offers to perform plumbing work within the state
shall give and maintain bond to the state in the amount of at least $25,000 for (1) all
plumbing work entered into within the state or (2) all plumbing work and subsurface
sewage treatment work entered into within the state. If the bond is for both plumbing work
and subsurface sewage treatment work, the bond must comply with the requirements of
this section and section 115.56, subdivision 2, paragraph (e). The bond shall be for the
benefit of persons injured or suffering financial loss by reason of failure to comply with the
requirements of the State Plumbing Code and, if the bond is for both plumbing work and
subsurface sewage treatment work, financial loss by reason of failure to comply with the
requirements of sections 115.55 and 115.56. The bond shall be filed with the commissioner
and shall be written by a corporate surety licensed to do business in the state.
    In addition, as a condition of licensing, each contractor (c) Each person who
performs or offers to perform plumbing work within the state shall have and maintain in
effect public liability insurance, including products liability insurance with limits of at
least $50,000 per person and $100,000 per occurrence and property damage insurance
with limits of at least $10,000. The insurance shall be written by an insurer licensed to
do business in the state of Minnesota and. Each licensed master plumber person who
performs or offers to perform plumbing work within the state shall maintain on file
with the commissioner a certificate evidencing the insurance. In the event of a policy
cancellation, the insurer shall send written notice to the commissioner at the same time
that a cancellation request is received from or a notice is sent to the insured.

    Sec. 21. Minnesota Statutes 2010, section 326B.46, subdivision 3, is amended to read:
    Subd. 3. Bond and insurance exemption. If a master plumber or restricted master
plumber person who is in compliance with the bond and insurance requirements of
subdivision 2, employs a licensed plumber, the or an individual who has completed pipe
laying training as prescribed by the commissioner, that employee plumber shall not be
required to meet the bond and insurance requirements of subdivision 2. An individual who
is an employee working on the maintenance and repair of plumbing equipment, apparatus,
or facilities owned or leased by the individual's employer and which is within the limits of
property owned or leased, and operated or maintained by the individual's employer, shall
not be required to meet the bond and insurance requirements of subdivision 2.

    Sec. 22. Minnesota Statutes 2010, section 326B.47, subdivision 1, is amended to read:
    Subdivision 1. Registration; supervision; records. (a) All unlicensed individuals,
other than plumber's apprentices and individuals who have completed pipe laying training
as prescribed by the commissioner, must be registered under subdivision 3.
(b) A plumber's apprentice or registered unlicensed individual is authorized to
assist in the installation of plumbing only while under the direct supervision of a master,
restricted master, journeyman, or restricted journeyman plumber. The master, restricted
master, journeyman, or restricted journeyman plumber is responsible for ensuring that all
plumbing work performed by the plumber's apprentice or registered unlicensed individual
complies with the plumbing code. The supervising master, restricted master, journeyman,
or restricted journeyman must be licensed and must be employed by the same employer
as the plumber's apprentice or registered unlicensed individual. Licensed individuals
shall not permit plumber's apprentices or registered unlicensed individuals to perform
plumbing work except under the direct supervision of an individual actually licensed to
perform such work. Plumber's apprentices and registered unlicensed individuals shall not
supervise the performance of plumbing work or make assignments of plumbing work
to unlicensed individuals.
(c) Contractors employing plumber's apprentices or registered unlicensed individuals
to perform plumbing work shall maintain records establishing compliance with this
subdivision that shall identify all plumber's apprentices and registered unlicensed
individuals performing plumbing work, and shall permit the department to examine and
copy all such records.

    Sec. 23. Minnesota Statutes 2010, section 326B.47, subdivision 3, is amended to read:
    Subd. 3. Registration, rules, applications, renewals, and fees. An unlicensed
individual may register by completing and submitting to the commissioner an application
form provided by the commissioner, with all fees required by section 326B.092. A
completed application form must state the date the individual began training, the
individual's age, schooling, previous experience, and employer, and other information
required by the commissioner. The Plumbing Board may prescribe rules, not inconsistent
with this section, for the registration of unlicensed individuals. Applications for initial
registration may be submitted at any time. Registration must be renewed annually and
shall be for the period from July 1 of each year to June 30 of the following year.

    Sec. 24. Minnesota Statutes 2010, section 326B.49, subdivision 1, is amended to read:
    Subdivision 1. Application, examination, and license fees. (a) Applications for
master and journeyman plumber's licenses shall be made to the commissioner, with
all fees required by section 326B.092. Unless the applicant is entitled to a renewal,
the applicant shall be licensed by the commissioner only after passing a satisfactory
examination developed and administered by the commissioner, based upon rules adopted
by the Plumbing Board, showing fitness.
(b) All initial journeyman plumber's licenses shall be effective for more than one
calendar year and shall expire on December 31 of the year after the year in which the
application is made. All master plumber's licenses shall expire on December 31 of each
even-numbered year after issuance or renewal. The commissioner shall in a manner
determined by the commissioner, without the need for any rulemaking under chapter 14,
phase in the renewal of master and journeyman plumber's licenses from one year to two
years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be
two-year licenses.
(c) Applications for contractor licenses shall be made to the commissioner, with all
fees required by section 326B.092. All contractor licenses shall expire on December 31 of
each odd-numbered year after issuance or renewal.
(d) For purposes of calculating license fees and renewal license fees required under
section 326B.092:
(1) the following licenses shall be considered business licenses: plumbing contractor
and restricted plumbing contractor;
(2) the following licenses shall be considered master licenses: master plumber and
restricted master plumber;
(3) the following licenses shall be considered journeyman licenses: journeyman
plumber and restricted journeyman plumber; and
(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3,
shall be considered an entry level license.
(e) For each filing of a certificate of responsible person individual by an employer,
the fee is $100.
(f) The commissioner shall charge each person giving bond under section 326B.46,
subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a
licensed contractor.

    Sec. 25. Minnesota Statutes 2010, section 326B.56, subdivision 1, is amended to read:
    Subdivision 1. Bonds. (a) As a condition of licensing, each water conditioning
contractor shall give and maintain a bond to the state as described in paragraph (b).
No applicant for a water conditioning contractor or installer license who maintains the
bond under paragraph (b) shall be otherwise required to meet the bond requirements of
any political subdivision.
    (b) Each bond given to the state under this subdivision shall be in the total sum of
$3,000 conditioned upon the faithful and lawful performance of all water conditioning
installation or servicing done within the state. The bond shall be for the benefit of
persons suffering injuries or damages due to the work. The bond shall be filed with the
commissioner and shall be written by a corporate surety licensed to do business in this
state. The bond must remain in effect at all times while the application is pending and
while the license is in effect.

    Sec. 26. Minnesota Statutes 2010, section 326B.58, is amended to read:
326B.58 FEES; RENEWAL.
    (a) Each initial water conditioning master and water conditioning journeyman
license shall be effective for more than one calendar year and shall expire on December 31
of the year after the year in which the application is made.
(b) The commissioner shall in a manner determined by the commissioner, without
the need for any rulemaking under chapter 14, phase in the renewal of water conditioning
master and journeyman licenses from one year to two years. By June 30, 2011, all
renewed water conditioning contractor and installer licenses shall be two-year licenses.
The Plumbing Board may by rule prescribe for the expiration and renewal of licenses.
(c) All water conditioning contractor licenses shall expire on December 31 of the
year after issuance or renewal.
(d) For purposes of calculating license fees and renewal fees required under section
326B.092:
(1) a water conditioning journeyman license shall be considered a journeyman
license;
(2) a water conditioning master license shall be considered a master license; and
(3) a water conditioning contractor license shall be considered a business license.

    Sec. 27. Minnesota Statutes 2010, section 326B.82, subdivision 2, is amended to read:
    Subd. 2. Appropriate and related knowledge. "Appropriate and related
knowledge" means facts, information, or principles that are clearly relevant to the licensee
in performing licensee's responsibilities under a license issued by the commissioner.
These facts, information, or principles must convey substantive and procedural knowledge
as it relates to postlicensing issues and must be relevant to the technical aspects of a
particular area of continuing education regulated industry.

    Sec. 28. Minnesota Statutes 2010, section 326B.82, subdivision 3, is amended to read:
    Subd. 3. Classroom hour. "Classroom hour" means a 50-minute hour 50 minutes of
educational content.

    Sec. 29. Minnesota Statutes 2010, section 326B.82, subdivision 7, is amended to read:
    Subd. 7. Medical hardship. "Medical hardship" includes means a documented
physical disability or medical condition.

    Sec. 30. Minnesota Statutes 2010, section 326B.82, subdivision 9, is amended to read:
    Subd. 9. Regulated industries industry. "Regulated industries industry" means
residential contracting, residential remodeling, or residential roofing. Each of these is a
regulated industry any business, trade, profession, or occupation that requires a license
issued under this chapter or chapter 327B as a condition of doing business in Minnesota.

    Sec. 31. Minnesota Statutes 2010, section 326B.821, subdivision 1, is amended to read:
    Subdivision 1. Purpose. The purpose of this section is to establish standards
for residential building contractor continuing education. The standards must include
requirements for continuing education in the implementation of energy codes or energy
conservation measures applicable to residential buildings.

    Sec. 32. Minnesota Statutes 2010, section 326B.821, subdivision 5, is amended to read:
    Subd. 5. Content. (a) Continuing education consists of approved courses that
impart appropriate and related knowledge in the residential construction industry regulated
industries pursuant to sections 326B.802 to 326B.885 this chapter and other relevant
applicable federal and state laws, rules, and regulations. Courses may include relevant
materials that are included in licensing exams subject to the limitations imposed in
subdivision 11. The burden of demonstrating that courses impart appropriate and related
knowledge is upon the person seeking approval or credit.
    (b) Except as required for Internet continuing education, 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 as part of the course, the sponsor must provide students with a
syllabus containing, at a minimum, the course title, the times and dates of the course
offering, the name, address, and telephone number of the course sponsor and, the name
and affiliation of the 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 classroom hour approved by the commissioner. One
credit hour of continuing education is equivalent to 50 minutes of educational content.
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.
    (e) 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 duration of the
initial presentation. 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 credits for completion of an approved course may only be
used once for renewal of a specific license.
    (e) (f) Courses will be approved using the following guidelines:
(1) course content must demonstrate significant intellectual or practical content and
deal with matters directly related to the practice of residential construction in the regulated
industry, workforce safety, or the business of running a residential construction company
in the regulated industry. Courses may also address the professional responsibility or
ethical obligations of residential contractors to homeowners and suppliers a licensee
related to work in the regulated industry;
(2) the following courses may be automatically approved if they are specifically
designed for the residential construction regulated industry and are in compliance with
paragraph (f) (g):
(i) courses approved by the Minnesota Board of Continuing Legal Education; or
(ii) courses approved by the International Code Council, National Association of
Home Building, or other nationally recognized professional organization of the residential
construction regulated industry; and
(3) courses must be presented and attended in a suitable classroom or construction
setting, except for Internet education courses which must meet the requirements of
subdivision 5a. Courses presented via video recording, simultaneous broadcast, or
teleconference may be approved provided the sponsor is available at all times during the
presentation, except for Internet education courses which must meet the requirements
of subdivision 5a.
(f) (g) 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 skills, including typing, speed reading, or other
machines or equipment. Computer courses are allowed, if appropriate and related to the
residential construction regulated industry;
    (3) courses in sales promotion, including meetings held in conjunction with the
general business of the licensee;
    (4) courses in motivation, salesmanship, psychology, or personal time management;
    (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; or
(6) courses where any of the educational content of the course is the State Building
Code that include code provisions that have not been adopted into the State Building
Code unless the course materials clarify whether or not that the code provisions have
been officially adopted into a future version of the State Building Code and the effective
date of enforcement, if applicable.
(h) Nothing in this subdivision shall limit an authority expressly granted to the Board
of Electricity, Board of High Pressure Piping Systems, or Plumbing Board.

    Sec. 33. Minnesota Statutes 2010, section 326B.821, subdivision 5a, is amended to
read:
    Subd. 5a. 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) before the course is submitted for the commissioner's
approval. The IDECC 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. 34. Minnesota Statutes 2010, section 326B.821, subdivision 6, is amended to read:
    Subd. 6. Course approval. (a) Courses must be approved by the commissioner
in advance and will be approved on the basis of the applicant's compliance with the
provisions of this section relating to continuing education in the regulated industries. The
commissioner shall make the final determination as to the approval and assignment of
credit hours for courses. Courses must be at least one hour in length.
    Licensees requesting credit for continuing education courses that have not been
previously approved by the commissioner shall, on a form prescribed by the commissioner,
submit an application for approval of continuing education credit accompanied by a
nonrefundable fee of $20 for each course to be reviewed. To be approved, courses must be
in compliance with the provisions of this section governing the types of courses that will
and will not be approved.
    Approval will not be granted for time spent on meals or other unrelated activities.
Breaks may not be accumulated in order to dismiss the class early. Classes shall not be
offered by a provider to any one student for longer than eight hours in one day, excluding
meal breaks.
    (b) Application for course approval must be submitted on a form approved by the
commissioner at least 30 days before the course offering.
    (c) Approval must be granted for a subsequent offering of identical continuing
education courses without requiring a new application if a notice of the subsequent
offering is filed with the commissioner at least 30 days in advance of the date the course is
to be held. The commissioner shall deny future offerings of courses if they are found not
to be in compliance with the laws relating to course approval.

    Sec. 35. Minnesota Statutes 2010, section 326B.821, subdivision 7, is amended to read:
    Subd. 7. Courses open to all. All course offerings must be open to any interested
individuals. Access may be restricted by the sponsor based on class size only. Courses
must shall not be approved if attendance is restricted to any particular group of people,
except for company-sponsored courses allowed by applicable law.

    Sec. 36. Minnesota Statutes 2010, section 326B.821, subdivision 8, is amended to read:
    Subd. 8. Course sponsor. (a) Each course of study shall have at least one sponsor,
approved by the commissioner, who is responsible for supervising the program and
ensuring compliance with all relevant law. Sponsors may engage an additional approved
sponsor in order to assist the sponsor or to act as a substitute for the sponsor in the event
of an emergency or illness.
(b) Sponsors must submit an application and sworn statement stating they agree to
abide by the requirements of this section and any other applicable statute or rule pertaining
to residential construction continuing education in the regulated industry.
(c) A sponsor may also be an instructor.
(d) Failure to comply with requirements paragraph (b) may result in loss of sponsor
approval for up to two years in accordance with section 326B.082.

    Sec. 37. Minnesota Statutes 2010, section 326B.821, subdivision 9, is amended to read:
    Subd. 9. Responsibilities. A sponsor is responsible for:
    (1) ensuring compliance with all laws and rules relating to continuing educational
offerings governed by the commissioner;
    (2) ensuring that students are provided with current and accurate information relating
to the laws and rules governing their licensed activity the regulated industry;
    (3) supervising and evaluating courses and instructors. Supervision includes
ensuring that all areas of the curriculum are addressed without redundancy and that
continuity is present throughout the entire course;
    (4) ensuring that instructors are qualified to teach the course offering;
    (5) furnishing the commissioner, upon request, with copies of course and instructor
evaluations and. Evaluations must be completed by students at the time the course is
offered;
(6) furnishing the commissioner, upon request, with copies of the qualifications of
instructors. Evaluations must be completed by students at the time the course is offered
and by sponsors within five days after the course offering;
    (6) (7) investigating complaints related to course offerings or instructors. A copy
of the written complaint must be sent to the commissioner within ten days of receipt of
the complaint and a copy of the complaint resolution must be sent not more than ten
days after resolution is reached;
    (7) (8) maintaining accurate records relating to course offerings, instructors, tests
taken by students if required, and student attendance for a period of three years from the
date on which the course was completed. These records must be made available to the
commissioner upon request. In the event the sponsor ceases operations before termination
of the sponsor application, the sponsor must provide to the commissioner digital copies of
all course and attendance records of courses held for the previous three years;
    (8) (9) attending workshops or instructional programs as reasonably required by
the commissioner;
    (9) (10) providing course completion certificates within ten days of, but not before,
completion of the entire course. A sponsor may require payment of the course tuition as a
condition of receiving the course completion certificate. Course completion certificates
must be completed in their entirety. Course completion certificates must and shall contain
the following:
(i) the statement: "If you have any comments about this course offering, please mail
them to the Minnesota Department of Labor and Industry.";
(ii) the current address of the department must be included. A sponsor may require
payment of the course tuition as a condition for receiving the course completion certificate,
name of the provider, date and location of the course, educational program identification
provided by the department, and hours of instruction or continuing education hours; and
(iii) the licensee's or attendee's name and license, certificate, or registration number
or the last four digits of the licensee's or attendee's Social Security number; and
    (10) (11) notifying the commissioner in writing within ten days of any change in the
information in an application for approval on file with the commissioner.

    Sec. 38. Minnesota Statutes 2010, section 326B.821, 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.
Failure to have only qualified instructors teach at an approved course offering will result in
loss of course approval. Sponsors 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) four years' practical experience in the subject area being taught;
    (2) a college or graduate degree in the subject area being taught;
(3) direct experience in the development of laws, rules, or regulations related to the
residential construction regulated industry; or
(4) demonstrated expertise in the subject area being taught. Instructors providing
instruction related to electricity, plumbing, or high pressure piping systems must comply
with all applicable continuing education rules adopted by the Board of Electricity, the
Plumbing Board, or the Board of High Pressure Piping Systems.
    (c) Approved Qualified continuing education 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.

    Sec. 39. Minnesota Statutes 2010, section 326B.821, subdivision 11, is amended to
read:
    Subd. 11. Prohibited practices for sponsors and instructors. (a) In connection
with an approved continuing education course, sponsors and instructors shall not:
    (1) recommend or, promote, or disparage the specific services, products, processes,
procedures, or practices of a particular business person in the regulated industry;
    (2) encourage or recruit individuals students to engage the services of, or become
associated with, a particular business;
    (3) use materials for the sole purpose of promoting a particular business;
    (4) require students to participate in other programs or services offered by an
instructor or sponsor;
    (5) attempt, either directly or indirectly, to discover questions or answers on an
examination for a license;
    (6) disseminate to any other person specific questions, problems, or information
known or believed to be included in licensing examinations;
    (7) misrepresent any information submitted to the commissioner;
    (8) fail to reasonably cover, or ensure coverage of, all points, issues, and concepts
contained in the course outline approved by the commissioner during the approved
instruction; or
    (9) issue inaccurate course completion certificates.
    (b) Sponsors shall notify the commissioner within ten days of a felony or gross
misdemeanor conviction or of disciplinary action taken against an occupational or
professional license held by the sponsor or an instructor teaching an approved course. The
notification conviction or disciplinary action shall be grounds for the commissioner to
withdraw the approval of the sponsor and to disallow the use of the sponsor or instructor.

    Sec. 40. Minnesota Statutes 2010, section 326B.821, subdivision 12, is amended to
read:
    Subd. 12. Fees Course tuition. Fees Tuition for an approved course of study
and related materials must be clearly identified to students. In the event that a course is
canceled for any reason, all fees tuition must be returned within 15 days from the date of
cancellation. In the event that a course is postponed for any reason, students shall be given
the choice of attending the course at a later date or having their fees tuition refunded in
full within 15 days from the date of postponement. If a student is unable to attend a course
or cancels the registration in a course, sponsor policies regarding refunds shall govern.

    Sec. 41. Minnesota Statutes 2010, section 326B.821, subdivision 15, is amended to
read:
    Subd. 15. Advertising courses. (a) Paragraphs (b) to (g) govern the advertising
of continuing education courses.
    (b) Advertising must be truthful and not deceptive or misleading. Courses may
not be advertised as approved for continuing education credit unless approval has been
granted in writing by the commissioner.
    (c) Once a course is approved, all advertisement, pamphlet, circular, or other similar
materials pertaining to an approved course circulated or distributed in this state, must
prominently display the following statement:
    "This course has been approved by the Minnesota Department of Labor and Industry
for ....... (approved number of hours) hours for residential contractor ....... (regulated
industry) continuing education."
    (d) Advertising of approved courses must be clearly distinguishable from the
advertisement of other nonapproved courses and services.
    (e) Continuing education courses may not be advertised before approval unless the
course is described in any advertising as "approval pending." The sponsor must verbally
notify licensees students before commencement of the course if the course has been
denied credit, has not been approved for credit, or has only been approved for partial
credit by the commissioner.
    (f) The number of hours for which a course has been approved must be prominently
displayed on an advertisement for the course. If the course offering is longer than the
number of hours of credit to be given, it must be clear that credit is not earned for the
entire course.
    (g) The course approval number must not be included in any advertisement.

    Sec. 42. Minnesota Statutes 2010, section 326B.821, subdivision 16, is amended to
read:
    Subd. 16. Notice to students. At the beginning of each approved offering, the
following notice must be handed out in printed form or must be read to students:
    "This educational offering is recognized by the Minnesota Department of Labor and
Industry as satisfying ....... (insert number of hours approved) hours of credit toward
residential contractor (insert regulated industry) continuing education requirements."

    Sec. 43. Minnesota Statutes 2010, section 326B.821, subdivision 18, is amended to
read:
    Subd. 18. Falsification of reports or certificates. A licensee, its qualified person
qualifying individual, or an applicant found to have falsified an education report or
certificate to the commissioner shall be considered to have violated the laws relating to
the regulated industry for which the person has a license and shall be subject to censure,
limitation, condition, suspension, or revocation of the license or denial of the application
for licensure the enforcement provisions of section 326B.082.
    The commissioner reserves the right to audit a licensee's continuing education
records.

    Sec. 44. Minnesota Statutes 2010, section 326B.821, subdivision 19, is amended to
read:
    Subd. 19. Waivers and extensions. If a licensee provides documentation to the
commissioner that the licensee or its qualifying person is unable, and will continue to be
unable, to attend actual classroom course work because of a physical disability, medical
condition, or similar reason, attendance at continuing education courses shall be waived
for a period not to exceed one year. The commissioner shall require that the licensee or
its qualifying person satisfactorily complete a self-study program to include reading a
sufficient number of textbooks, or listening to a sufficient number of tapes, related to the
residential building contractor industry, as would be necessary for the licensee to satisfy
continuing educational credit hour needs. The commissioner shall award the licensee
credit hours for a self-study program by determining how many credit hours would
be granted to a classroom course involving the same material and giving the licensee
the same number of credit hours under this section. The licensee may apply each year
for a new waiver upon the same terms and conditions as were necessary to secure the
original waiver, and must demonstrate that in subsequent years, the licensee was unable to
complete actual classroom course work. The commissioner may request documentation
of the condition upon which the request for waiver is based as is necessary to satisfy
the commissioner of the existence of the condition and that the condition does preclude
attendance at continuing education courses.
    Upon written proof demonstrating a medical hardship, the commissioner shall
extend, for up to 90 days, the time period during which the continuing education must be
successfully completed. Loss of income from either attendance at courses or cancellation
of a license is not a bona fide financial hardship. Requests for extensions must be
submitted to the commissioner in writing no later than 60 days before the education is
due and must include an explanation with verification of the hardship, plus verification of
enrollment at an approved course of study on or before the extension period expires.

    Sec. 45. Minnesota Statutes 2010, section 326B.821, subdivision 20, is amended to
read:
    Subd. 20. Reporting requirements. Required Continuing education credits must
be reported by the sponsor in a manner prescribed by the commissioner. Licensees are
responsible for maintaining copies of course completion certificates.

    Sec. 46. Minnesota Statutes 2010, section 326B.821, subdivision 22, is amended to
read:
    Subd. 22. Continuing education approval. Continuing education courses must be
approved in advance by the commissioner of labor and industry. "Sponsor" means any
person or entity offering approved education.

    Sec. 47. Minnesota Statutes 2010, section 326B.821, subdivision 23, is amended to
read:
    Subd. 23. Continuing education fees. The following fees shall be paid to the
commissioner:
    (1) initial course approval, $20 for each hour or fraction of one hour of continuing
education course approval sought. Initial course approval expires on the last day of the
24th 36th month after the course is approved;
    (2) renewal of course approval, $20 per course. Renewal of course approval expires
on the last day of the 24th month after the course is renewed;
    (3) (2) initial sponsor approval, $100. Initial sponsor approval expires on the last
day of the 24th month after the sponsor is approved; and
    (4) (3) renewal of sponsor approval, $20 $100. Renewal of sponsor approval expires
on the last day of the 24th month after the sponsor is renewed.

    Sec. 48. Minnesota Statutes 2010, section 326B.865, is amended to read:
326B.865 SIGN CONTRACTOR; BOND.
    (a) A sign contractor may post a compliance bond with the commissioner,
conditioned that the sign contractor shall faithfully perform duties and comply with laws,
ordinances, rules, and contracts entered into for the installation of signs. The bond must
be renewed biennially and maintained for so long as determined by the commissioner.
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 annual 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 United States mail.
    (b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a
local unit of government that requires sign contractors to post a compliance bond. The
bond is in lieu of any compliance bond required by a local unit of government.
    (c) For purposes of this section, "sign" means a device, structure, fixture, or
placard using graphics, symbols, or written copy that is erected on the premises of an
establishment including the name of the establishment or identifying the merchandise,
services, activities, or entertainment available on the premises.
(d) Each person giving bond under this section shall pay a biennial bond filing fee of
$100 to the commissioner of labor and industry.
EFFECTIVE DATE.This section is effective January 1, 2012.

    Sec. 49. Minnesota Statutes 2010, section 326B.89, subdivision 6, is amended to read:
    Subd. 6. Verified application. To be eligible for compensation from the fund, an
owner or lessee shall serve on the commissioner a verified application for compensation
on a form approved by the commissioner. The application shall verify the following
information:
    (1) the specific grounds upon which the owner or lessee seeks to recover from
the fund:
    (2) that the owner or the lessee has obtained a final judgment in a court of competent
jurisdiction against a licensee licensed under section 326B.83;
    (3) that the final judgment was obtained against the licensee on the grounds
of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
performance that arose directly out of a contract directly between the licensee and the
homeowner or lessee that was entered into prior to the cause of action and that occurred
when the licensee was licensed and performing any of the special skills enumerated under
section 326B.802, subdivision 15;
    (4) the amount of the owner's or the lessee's actual and direct out-of-pocket loss on
the owner's residential real estate, on residential real estate leased by the lessee, or on new
residential real estate that has never been occupied or that was occupied by the licensee
for less than one year prior to purchase by the owner;
    (5) that the residential real estate is located in Minnesota;
    (6) that the owner or the lessee is not the spouse of the licensee or the personal
representative of the licensee;
    (7) the amount of the final judgment, any amount paid in satisfaction of the final
judgment, and the amount owing on the final judgment as of the date of the verified
application;
    (8) that the owner or lessee has diligently pursued remedies against all the judgment
debtors and all other persons liable to the judgment debtor in the contract for which the
owner or lessee seeks recovery from the fund; and
    (9) that the verified application is being served within two years after the judgment
became final.
    The verified application must include documents evidencing the amount of the
owner's or the lessee's actual and direct out-of-pocket loss. The owner's and the lessee's
actual and direct out-of-pocket loss shall not include any attorney fees, litigation costs
or fees, interest on the loss, and interest on the final judgment obtained as a result of the
loss or any costs not directly related to the value difference between what was contracted
for and what was provided. Any amount paid in satisfaction of the final judgment shall
be applied to the owner's or lessee's actual and direct out-of-pocket loss. An owner or
lessee may serve a verified application regardless of whether the final judgment has been
discharged by a bankruptcy court. A judgment issued by a court is final if all proceedings
on the judgment have either been pursued and concluded or been forgone, including all
reviews and appeals. For purposes of this section, owners who are joint tenants or tenants
in common are deemed to be a single owner. For purposes of this section, owners and
lessees eligible for payment of compensation from the fund shall not include government
agencies, political subdivisions, financial institutions, and any other entity that purchases,
guarantees, or insures a loan secured by real estate.

    Sec. 50. Minnesota Statutes 2010, section 326B.89, subdivision 8, is amended to read:
    Subd. 8. Administrative hearing. If an owner or a lessee timely serves a request
for hearing under subdivision 7, the commissioner shall request that an administrative law
judge be assigned and that a hearing be conducted under the contested case provisions of
chapter 14 within 45 days after the commissioner received the request for hearing, unless
the parties agree to a later date. The commissioner must notify the owner or lessee of the
time and place of the hearing at least 15 days before the hearing. Upon petition of the
commissioner, the administrative law judge shall continue the hearing up to 60 days and
upon a showing of good cause may continue the hearing for such additional period as the
administrative law judge deems appropriate.
At the hearing the owner or the lessee shall have the burden of proving by substantial
evidence under subdivision 6, clauses (1) to (8). Whenever an applicant's judgment
is by default, stipulation, or consent, or whenever the action against the licensee was
defended by a trustee in bankruptcy, the applicant shall have the burden of proving the
cause of action for fraudulent, deceptive, or dishonest practices, conversion of funds, or
failure of performance. Otherwise, the judgment shall create a rebuttable presumption
of the fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of
performance. This presumption affects the burden of producing evidence.
The administrative law judge shall issue findings of fact, conclusions of law, and
order. If the administrative law judge finds that compensation should be paid to the owner
or the lessee, the administrative law judge shall order the commissioner to make payment
from the fund of the amount it finds to be payable pursuant to the provisions of and in
accordance with the limitations contained in this section. The order of the administrative
law judge shall constitute the final decision of the agency in the contested case. The
commissioner or the owner or lessee may seek judicial review of the administrative law
judge's findings of fact, conclusions of law, and order shall be in accordance with sections
14.63 to 14.69.

    Sec. 51. Minnesota Statutes 2010, section 327.32, subdivision 1a, is amended to read:
    Subd. 1a. Requirement; used manufactured homes. No person shall sell or
offer for sale in this state any used manufactured home manufactured after June 14,
1976, or install for occupancy any used manufactured home manufactured after June
14, 1976, unless the used manufactured home complies with the Notice of Compliance
Form as provided in this subdivision. If manufactured after June 14, 1976, the home
must bear a label as required by the secretary. The Notice of Compliance Form shall be
signed by the seller and purchaser indicating which party is responsible for either making
or paying for any necessary corrections prior to the sale and transferring ownership of
the manufactured home.
The Notice of Compliance Form shall be substantially in the following form:
"Notice of Compliance Form as required in Minnesota Statutes,
section 327.32, subdivision 1
This notice must be completed and signed by the purchaser(s) and the seller(s) of the
used manufactured home described in the purchase agreement and on the bottom of this
notice before the parties transfer ownership of a used manufactured home constructed
after June 14, 1976.
Electric ranges and clothes dryers must have required four-conductor cords and plugs. For
the purpose of complying with the requirements of section 327B.06, a licensed retailer or
limited retailer shall retain at least one copy of the form required under this subdivision.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code
of Federal Regulations, title 24, section 3280.709 (g), and installed correctly in accordance
with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc.,
Code of Federal Regulations, title 24, section 3280.709 (g)).

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal
Regulations, title 24, section 3280.709 (a) and (d)(1) and (2), and installed correctly, in
accordance with their listing or standards.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
Smoke alarms are required to be installed and operational in accordance with Code of
Federal Regulations, title 24, section 3280.208.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
Carbon monoxide alarms or CO detectors that are approved and operational are required
to be installed within ten feet of each room lawfully used for sleeping purposes.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
Egress windows are required in every bedroom with at least one operable window with
a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with
the bottom of windows opening no more than 36 inches above the floor. Locks, latches,
operating handles, tabs, or other operational devices shall not be located more than 54
inches above the finished floor.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
The furnace compartment of the home is required to have interior finish with a flame
spread rating not exceeding 25 feet, as specified in the 1976 United States Department of
Housing and Urban Development Code governing manufactured housing construction.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
The water heater enclosure in this home is required to have interior finish with a flame
spread rating not exceeding 25 feet, as specified in the 1976 United States Department of
Housing and Urban Development Code governing manufactured housing construction.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
The home complies with the snowload and heat zone requirements for the state of
Minnesota as indicated by the data plate.

Complies ..........
Correction required ..........

Initialed by Responsible Party: Buyer ..........
Seller ..........
The parties to this agreement have initialed all required sections and agree by their
signature to complete any necessary corrections prior to the sale or transfer of ownership
of the home described below as listed in the purchase agreement. The state of Minnesota
or a local building official has the authority to inspect the home in the manner described in
Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was
properly executed as provided under the Manufactured Home Building Code.

Signature of Purchaser(s) of Home

..............................date..............................
..............................date..............................

...................................................................
...................................................................


Print name as appears on purchase
agreement
Print name as appears on purchase
agreement

Signature of Seller(s) of Home

..............................date..............................
..............................date..............................

...................................................................
...................................................................

Print name and license number, if applicable
Print name and license number, if applicable

(Street address of home at time of sale)

................................................................................................................................

(City/State/Zip).......................................................................................................

Name of manufacturer of home............................................................................

Model and year.....................................................................................................

Serial number........................................................................................................"
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 52. Minnesota Statutes 2010, section 327.32, subdivision 1b, is amended to read:
    Subd. 1b. Alternative design plan. An alternative frost-free design slab for a new
or used manufactured home that is submitted to the local building official, third-party
inspector, or the department, stamped by a licensed professional engineer or architect, and
is as being in compliance with either the federal installation standards in effect at the date
of manufacture, the manufacturer's installation manual, or the Minnesota State Building
Code, when applicable, shall be issued a permit by the department or approval within ten
days of being received by the approving authority.

    Sec. 53. Minnesota Statutes 2010, section 327.32, subdivision 1e, is amended to read:
    Subd. 1e. Reinstallation requirements for single-section used manufactured
homes. (a) All single-section used manufactured homes reinstalled less than 24 months
from the date of installation by the first purchaser must be reinstalled in compliance with
subdivision 1c. All single-section used manufactured homes reinstalled more than 24
months from the date of installation by the first purchaser may be reinstalled without
a frost-protected foundation if the home is reinstalled in compliance with Minnesota
Rules, chapter 1350, for above frost-line installations and the notice requirement of
subdivision 1f is complied with by the seller and the purchaser of the single-section used
manufactured home.
(b) The installer shall affix an installation seal issued by the department to the
outside of the home as required by the Minnesota State Building Code. The certificate
of installation issued by the installer of record shall clearly state that the home has been
reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and
for issuance of reinstallation seals shall follow the requirements of sections 326B.802
to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be
those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an
installation certificate for an above frost-line installation is issued to a single-section used
manufactured home being listed for sale, the purchase agreement must disclose that the
home is installed on a nonfrost-protected foundation and recommend that the purchaser
have the home inspected to determine the effects of frost on the home.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 54. Minnesota Statutes 2010, section 327.32, subdivision 1f, is amended to read:
    Subd. 1f. Notice requirement. The seller of the single-section used manufactured
home being reinstalled under subdivision 1e shall provide the following notice to the
purchaser and secure signatures of all parties to the purchase agreement on or before
signing a purchase agreement prior to submitting an application for an installation
certificate. Whenever a current owner of a manufactured home reinstalls the manufactured
home under subdivision 1e, the current owner is not required to comply with the notice
requirement under this subdivision. The notice shall be in at least 14-point font, except the
heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font.
The notice must be printed on a separate sheet of paper in a color different than the paper
on which the purchase agreement is printed. The notice becomes a part of the purchase
agreement and shall be substantially in the following form:
"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;
WHICH MAY VOID WARRANTY
It is recommended that the single-section used manufactured home being reinstalled
follow the instructions in the manufacturer's installation manual. By signing this notice,
the purchaser(s) are acknowledging they have elected to use footings placed above the
local frost line in accordance with the Minnesota State Building Code.
The seller has explained the differences between the manufacturer's installation
instructions and the installation system selected by the purchaser(s) with respect to
possible effects of frost on the manufactured home.
The purchaser(s) acknowledge by signing this notice that there is no manufacturer's
original warranty remaining on the home and recognize that any other extended or ancillary
warranty could be adversely affected if any applicable warranty stipulates that the home
be installed in accordance with the manufacturer's installation manual to remain effective.
After the reinstallation of the manufactured home, it is highly recommended that the
purchaser(s) have a licensed manufactured home installer recheck the home's installation
for any releveling needs or anchoring system adjustments each freeze-thaw cycle.
The purchaser(s) of the used manufactured home described below that is being reinstalled
acknowledge they have read this notice and have been advised to contact the manufacturer
of the home and/or the Department of Labor and Industry if they desire additional
information before signing this notice. It is the intent of this notice to inform the
purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system
for the reinstallation of the manufactured home as originally required by the home's
installation manual.
Plain language notice.
I understand that because this home will be installed with footings placed above the
local frost line, this home may be subject to adverse effects from frost heave that may
damage this home. Purchaser(s) initials: .......
I understand that the installation of this home with footings placed above the local
frost line could affect my ability to obtain a mortgage or mortgage insurance on this
home. Purchaser(s) initials: .......
I understand that the installation of this home with footings placed above the local
frost line could void my warranty on the home if any warranty is still in place on this
home. Purchaser(s) initials: .......

Signature of Purchaser(s)

..............................date..............................
..............................date..............................

...................................................................
...................................................................

Print name
Print name


(Street address of location where
manufactured home is being reinstalled)

..............................................................................................................................

(City/State/Zip)....................................................................................................

Name of manufacturer of home.........................................................................

Model and year...................................................................................................

Serial number.....................................................................................................
Name of licensed installer and license number or homeowner responsible for the
installation of the home as described above.

Installer name:...................................................................................................

License number:................................................................................................"
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 55. Minnesota Statutes 2010, section 327.32, subdivision 7, is amended to read:
    Subd. 7. Enforcement. All jurisdictions enforcing the State Building Code, in
accordance with sections 326B.101 to 326B.151, shall undertake or provide for the
administration and enforcement of the manufactured home installation rules promulgated
by the commissioner. Municipalities which have adopted the State Building Code may
provide installation inspection and plan review services in noncode areas of the state.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 56. Minnesota Statutes 2010, section 327.33, subdivision 2, is amended to read:
    Subd. 2. Fees. The commissioner shall by rule establish reasonable fees for seals,
installation seals and inspections which are sufficient to cover all costs incurred in the
administration of sections 327.31 to 327.35. The commissioner shall also establish by
rule a monitoring inspection fee in an amount that will comply with the secretary's fee
distribution program. This monitoring inspection fee shall be an amount paid by the
manufacturer for each manufactured home produced in Minnesota. The monitoring
inspection fee shall be paid by the manufacturer to the secretary. The rules of the
fee distribution program require the secretary to distribute the fees collected from all
manufactured home manufacturers among states approved and conditionally approved
based on the number of new manufactured homes whose first location after leaving the
manufacturer is on the premises of a distributor, dealer or purchaser in that state. Fees
for inspections in areas that have not adopted the State Building Code must be equal to
the fees for inspections in code areas of the state. Third party vendors may charge their
usual and normal charge for inspections.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 57. Minnesota Statutes 2010, section 327C.095, subdivision 12, is amended to
read:
    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.
    (a) If a manufactured home owner is required to move due to the conversion of all or a
portion of a manufactured home park to another use, the closure of a park, or cessation of
use of the land as a manufactured home park, the manufactured park owner shall, upon
the change in use, pay to the commissioner of management and budget for deposit in the
Minnesota manufactured home relocation trust fund under section 462A.35, the lesser
amount of the actual costs of moving or purchasing the manufactured home approved
by the neutral third party and paid by the Minnesota Housing Finance Agency under
subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured
home, and $6,000 for each multisection manufactured home, for which a manufactured
home owner has made application for payment of relocation costs under subdivision 13,
paragraph (c). The manufactured home park owner shall make payments required under
this section to the Minnesota manufactured home relocation trust fund within 60 days of
receipt of invoice from the neutral third party.
    (b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:
    (1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at
the park owner's expense;
    (2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;
    (3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;
    (4) the manufactured home owner has a pending eviction action for nonpayment of
lot rental amount under section 327C.09, which was filed against the manufactured home
owner prior to the mailing date of the closure statement under subdivision 1, and the writ
of recovery has been ordered by the district court;
    (5) the conversion of all or a portion of a manufactured home park to another use,
the closure of a park, or cessation of use of the land as a manufactured home park is the
result of a taking or exercise of the power of eminent domain by a governmental entity
or public utility; or
    (6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.
    (c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than $1,000,000 as of June 30 of each year, the commissioner of management and
budget shall annually assess each manufactured home park owner by mail the total amount
of $12 for each licensed lot in their park, payable on or before September 15 of each that
year. The commissioner of management and budget shall deposit the any payments in the
Minnesota manufactured home relocation trust fund. On or before July 15 of each year,
the commissioner of management and budget shall prepare and distribute to park owners a
letter explaining whether funds are being collected for that year, information about the
collection, an invoice for all licensed lots, and a sample form for the park owners to
collect information on which park residents have been accounted for. If assessed under
this paragraph, the park owner may recoup the cost of the $12 assessment as a lump
sum or as a monthly fee of no more than $1 collected from park residents together with
monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust
payment for lots in their park that are vacant or otherwise not eligible for contribution to
the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the
assessment accordingly.
    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 58. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber each section of Minnesota Statutes listed in
column A with the number listed in column B. The revisor shall also make necessary
cross-reference changes consistent with the renumbering.

Column A
Column B

326B.82, subd. 2
326B.091, subd. 2a

326B.82, subd. 3
326B.091, subd. 2b

326b.82, subd. 5
326B.091, subd. 2c

326B.82, subd. 7
326B.091, subd. 4a

326B.82, subd. 8
326B.091, subd. 5a

326B.82, subd. 9
326B.091, subd. 5c

326B.82, subd. 10
326B.091, subd. 7

326B.821, subd. 4
326B.0981, subd. 17

326B.821, subd. 5
326B.0981, subd. 3

326B.821, subd. 5a
326B.0981, subd. 4

326B.821, subd. 6
326B.0981, subd. 5

326B.821, subd. 7
326B.0981, subd. 6

326B.821, subd. 8
326B.099, subd. 1

326B.821, subd. 9
326B.099, subd. 2

326B.821, subd. 10
326B.099, subd. 3

326B.821, subd. 11
326B.099, subd. 4

326B.821, subd. 12
326B.0981, subd. 7

326B.821, subd. 13
326B.0981, subd. 8

326B.821, subd. 14
326B.0981, subd. 9

326B.821, subd. 15
326B.0981, subd. 10

326B.821, subd. 16
326B.0981, subd. 11

326B.821, subd. 17
326B.099, subd. 5

326B.821, subd. 18
326B.0981, subd. 12

326B.821, subd. 19
326B.0981, subd. 13

326B.821, subd. 20
326B.0981, subd. 14

326B.821, subd. 22
326B.0981, subd. 2

326B.821, subd. 23
326B.0981, subd. 15

326B.821, subd. 24
326B.0981, subd. 16

    Sec. 59. REPEALER.
Minnesota Statutes 2010, sections 326B.82, subdivisions 4 and 6; and 326B.821,
subdivision 3, are repealed.
EFFECTIVE DATE.This section is effective January 1, 2012.

ARTICLE 4
EFFECTIVE DATE

    Section 1. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this act is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.
Presented to the governor July 19, 2011
Signed by the governor July 20, 2011, 9:05 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569