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    Subdivision 1. Grounds. In addition to the grounds set forth in section 326B.082,
subdivision 11
, the commissioner may deny, suspend, limit, place conditions on, or revoke a
license or certificate of exemption, or may censure the person holding the license or certificate of
exemption, if the applicant, licensee, certificate of exemption holder, qualifying person, or affiliate
of an applicant, licensee, or certificate of exemption holder, or other agent owner:
    (1) has filed an application for licensure or a certificate of exemption which is incomplete in
any material respect or contains any statement which, in light of the circumstances under which it
is made, is false or misleading with respect to any material fact;
    (2) has engaged in a fraudulent, deceptive, or dishonest practice;
    (3) is permanently or temporarily enjoined by any court of competent jurisdiction from
engaging in or continuing any conduct or practice involving any aspect of the business;
    (4) has failed to reasonably supervise employees, agents, subcontractors, or salespersons, or
has performed negligently or in breach of contract, so as to cause injury or harm to the public;
    (5) has violated or failed to comply with any provision of sections 326.83 to 326.98, any rule
or order under sections 326.83 to 326.98, or any other law, rule, or order related to the duties and
responsibilities entrusted to the commissioner;
    (6) has been convicted of a violation of the State Building Code or has refused to comply
with a notice of violation or stop order issued by a certified building official, or in local
jurisdictions that have not adopted the State Building Code has refused to correct a violation of
the State Building Code when the violation has been documented or a notice of violation or stop
order issued by a certified building official has been received;
    (7) has failed to use the proceeds of any payment made to the licensee for the construction of,
or any improvement to, residential real estate, as defined in section 326.83, subdivision 17, for the
payment of labor, skill, material, and machinery contributed to the construction or improvement,
knowing that the cost of any labor performed, or skill, material, or machinery furnished for
the improvement remains unpaid;
    (8) has not furnished to the person making payment either a valid lien waiver as to any
unpaid labor performed, or skill, material, or machinery furnished for an improvement, or a
payment bond in the basic amount of the contract price for the improvement conditioned for the
prompt payment to any person or persons entitled to payment;
    (9) has engaged in an act or practice that results in compensation to an aggrieved owner or
lessee from the contractor recovery fund pursuant to section 36B.825, unless:
    (i) the applicant or licensee has repaid the fund twice the amount paid from the fund, plus
interest at the rate of 12 percent per year; and
    (ii) the applicant or licensee has obtained a surety bond in the amount of at least $40,000,
issued by an insurer authorized to transact business in this state;
    (10) has engaged in bad faith, unreasonable delays, or frivolous claims in defense of a
civil lawsuit or arbitration arising out of their activities as a licensee or certificate of exemption
holder under this chapter;
    (11) has had a judgment entered against them for failure to make payments to employees,
subcontractors, or suppliers, that the licensee has failed to satisfy and all appeals of the judgment
have been exhausted or the period for appeal has expired;
    (12) if unlicensed, has obtained a building permit by the fraudulent use of a fictitious license
number or the license number of another, or, if licensed, has knowingly allowed an unlicensed
person to use the licensee's license number for the purpose of fraudulently obtaining a building
permit; or has applied for or obtained a building permit for an unlicensed person;
    (13) has made use of a forged mechanic's lien waiver under chapter 514;
    (14) has provided false, misleading, or incomplete information to the commissioner or has
refused to allow a reasonable inspection of records or premises;
    (15) has engaged in an act or practice whether or not the act or practice directly involves
the business for which the person is licensed, that demonstrates that the applicant or licensee is
untrustworthy, financially irresponsible, or otherwise incompetent or unqualified to act under
the license granted by the commissioner; or
    (16) has failed to comply with requests for information, documents, or other requests from
the department within the time specified in the request or, if no time is specified, within 30 days of
the mailing of the request by the department.
    Subd. 2.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 3.[Repealed, 2007 c 140 art 13 s 3]
    Subd. 4.[Repealed, 2007 c 140 art 13 s 3]
History: 1991 c 306 s 15; 1993 c 245 s 26,27; 1995 c 169 s 4; 1996 c 439 art 4 s 3,4; 2001
c 208 s 22; 2007 c 140 art 8 s 16

Official Publication of the State of Minnesota
Revisor of Statutes