2007 Minnesota Statutes

326.975 [Repealed, 2007 c 135 art 2 s 40; 2007 c 140 art 13 s 3]
NOTE:Subdivision 1 was also amended by Laws 2007, chapter 135, article 4, section
8, to read as follows:
    "Subdivision 1. Generally. (a) In addition to any other fees, each applicant for a license
under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund. The contractor's
recovery fund is created in the state treasury and must be administered by the commissioner in the
manner and subject to all the requirements and limitations provided by section 82.43.
    (b) The purpose of this fund is:
    (1) to compensate any aggrieved owner or lessee of residential property located within this
state who obtains a final judgment in any court of competent jurisdiction against a licensee
licensed under section 326.84, on grounds of fraudulent, deceptive, or dishonest practices,
conversion of funds, or failure of performance arising directly out of any transaction when the
judgment debtor was licensed and performed any of the activities enumerated under section
326.83, subdivision 19, on the owner's residential property or on residential property rented by
the lessee, or on new residential construction which was never occupied prior to purchase by the
owner, or which was occupied by the licensee for less than one year prior to purchase by the
owner, and which cause of action arose on or after April 1, 1994; and
    (2) to reimburse the Department of Labor and Industry for all legal and administrative
expenses, including staffing costs, incurred in administering the fund.
     Nothing may obligate the fund for more than $50,000 per claimant, nor more than $75,000
per licensee.
     Nothing may obligate the fund for claims based on a cause of action that arose before
the licensee paid the recovery fund fee set in clause (1), or as provided in section 326.945,
subdivision 3 .
    (c) Should the commissioner pay from the contractor's recovery fund any amount in
settlement of a claim or toward satisfaction of a judgment against a licensee, the license shall be
automatically suspended upon the effective date of an order by the court authorizing payment
from the fund. No licensee shall be granted reinstatement until the licensee has repaid in full, plus
interest at the rate of 12 percent a year, twice the amount paid from the fund on the licensee's
account, and has obtained a surety bond issued by an insurer authorized to transact business in
this state in the amount of at least $40,000."
NOTE:Subdivision 1 was also amended by Laws 2007, chapter 140, article 12, section
9, to read as follows:
    "Subdivision 1. Generally. (a) In addition to any other fees, each applicant for a license
under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund. The contractor's
recovery fund is created in the state treasury and must be administered by the commissioner in the
manner and subject to all the requirements and limitations provided by section 82.43.
    (1) The purpose of this fund is:
    (i) to compensate any aggrieved owner or lessee of residential property located within this
state who obtains a final judgment in any court of competent jurisdiction against a licensee
licensed under section 326.84, on grounds of fraudulent, deceptive, or dishonest practices,
conversion of funds, or failure of performance arising directly out of any transaction when the
judgment debtor was licensed and performed any of the activities enumerated under section
326.83, subdivision 19, on the owner's residential property or on residential property rented by
the lessee, or on new residential construction which was never occupied prior to purchase by the
owner, or which was occupied by the licensee for less than one year prior to purchase by the
owner, and which cause of action arose on or after April 1, 1994; and
    (ii) to reimburse the Department of Commerce for all legal and administrative expenses,
including staffing costs, incurred in administering the fund;
    (2) nothing may obligate the fund for more than $50,000 per claimant, nor more than
$75,000 per licensee; and
    (3) nothing may obligate the fund for claims based on a cause of action that arose before
the licensee paid the recovery fund fee set in clause (1), or as provided in section 326.945,
subdivision 3 .
    (b) Should the commissioner pay from the contractor's recovery fund any amount in
settlement of a claim or toward satisfaction of a judgment against a licensee, the license shall be
automatically suspended upon the effective date of an order by the court authorizing payment
from the fund. No licensee shall be granted reinstatement until the licensee has repaid in full, plus
interest at the rate of 12 percent a year, twice the amount paid from the fund on the licensee's
account, and has obtained a surety bond issued by an insurer authorized to transact business in
this state in the amount of at least $40,000."