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326.945 Residential building contractors and remodelers; bond maintenance until license renewal.

Subdivision 1. Residential building contractors and remodelers licensed as of June 30, 1993. A residential building contractor or remodeler licensed under section 326.84 who had a license in effect as of June 30, 1993, must, until the license is renewed, continuously maintain the license bond which was posted with the commissioner under section 326.94 when the person was initially licensed.

Subd. 2. Residential building contractors and remodelers licensed on or after July 1, 1993. A residential building contractor or remodeler who obtains a license on or after July 1, 1993, but before April 1, 1994, must post a license bond with the commissioner, conditioned that the applicant shall faithfully perform the duties and in all things comply with all laws, ordinances, and rules pertaining to the license or permit applied for and all contracts entered into, and must continuously maintain the license bond until the license is renewed. The required license bond must be in the following amount:

(1) $5,000 for a residential building contractor or remodeler with annual gross receipts of $1,000,000 or less;

(2) $10,000 for a residential building contractor or remodeler with annual gross receipts of more than $1,000,000 but less than $5,000,000; or

(3) $15,000 for a residential building contractor or remodeler with annual gross receipts of $5,000,000 or more.

Subd. 3. Residential building contractors and remodelers; recovery fund fee prorated. A residential building contractor or remodeler licensed under section 326.84, who does not maintain a license bond under section 326.94, shall pay a one-twelfth share of the contractor's recovery fund fee set in section 326.975, subdivision 1, paragraph (a), clause (1), in lieu of the license bond for each month or any portion of a month the licensee is not bonded prior to license renewal.

HIST: 1994 c 404 s 2

Official Publication of the State of Minnesota
Revisor of Statutes