1998 Minnesota Statutes

     326.91 Denial, suspension, or revocation of licenses. 

    Subdivision 1.    Cause.  The commissioner may by order 
 deny, suspend, or revoke any license or may censure a licensee, 
 and may impose a civil penalty as provided for in section 
 45.027, subdivision 6, if the commissioner finds that the order 
 is in the public interest, and that the applicant, licensee, or 
 affiliate of an applicant or licensee, or other agent, owner, 
 partner, director, governor, shareholder, member, officer, 
 qualifying person, or managing employee of the applicant or 
 licensee or any person occupying a similar status or performing 
 similar functions:  

    (1) has filed an application for a license which is 
 incomplete in any material respect or contains any statement 
 which, in light of the circumstances under which it is made, is 
 false or misleading with respect to any material fact; 

    (2) has engaged in a fraudulent, deceptive, or dishonest 
 practice; 

    (3) is permanently or temporarily enjoined by any court of 
 competent jurisdiction from engaging in or continuing any 
 conduct or practice involving any aspect of the business; 

    (4) has failed to reasonably supervise employees, agents, 
 subcontractors, or salespersons, or has performed negligently or 
 in breach of contract, so as to cause injury or harm to the 
 public; 

    (5) has violated or failed to comply with any provision of 
 sections 326.83 to 326.98 or any rule or order under sections 
 326.83 to 326.98; 

    (6) has been shown to be incompetent, untrustworthy, or 
 financially irresponsible; 

    (7) has been convicted of a violation of the State Building 
 Code; 

    (8) has failed to use the proceeds of any payment made to 
 the licensee for the construction of, or any improvement to, 
 residential real estate, as defined in section 326.83, 
 subdivision 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; 

    (9) has not furnished to the person making payment either a 
 valid lien waiver as to any unpaid labor performed, or skill, 
 material, or machinery furnished for an improvement, or a 
 payment bond in the basic amount of the contract price for the 
 improvement conditioned for the prompt payment to any person or 
 persons entitled to payment; 

    (10) has engaged in conduct which was the basis for a 
 contractor's recovery fund payment pursuant to section 326.975, 
 which payment has not been reimbursed; 

    (11) has engaged in bad faith, unreasonable delays, or 
 frivolous claims in defense of a civil lawsuit arising out of 
 their activities as a licensee under this chapter; 

    (12) has had a judgment entered against them for failure to 
 make payments to employees or subcontractors, and all appeals of 
 the judgment have been exhausted or the period for appeal has 
 expired; 

    (13) 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 

    (14) has made use of forged mechanics' lien waivers under 
 chapter 514. 

    Subd. 2.    Administrative action.  Section 45.027 
 applies to any action taken by the commissioner in connection 
 with the administration of sections 326.83 to 326.991. 

    Nothing in this section prevents the commissioner from 
 denying, suspending, revoking, or restricting a license, or from 
 censuring a licensee based on acts or omissions not specifically 
 enumerated in this subdivision. 

    Subd. 3.    Certificate of exemption holders.  For cause 
 shown under subdivision 1 or 2, the commissioner may deny, 
 suspend, or revoke a certificate of exemption issued under 
 section 326.84, subdivision 3, clause (5), in the same manner as 
 a license.  

    Subd. 4.    Action against unlicensed persons.  Nothing 
 in this section prevents the commissioner from taking actions, 
 including cease and desist actions, against persons required to 
 be licensed under sections 326.83 to 326.991, based on conduct 
 that would provide grounds for administrative action against a 
 licensee under this section. 

    HIST: 1991 c 306 s 15; 1993 c 245 s 26,27; 1995 c 169 s 4; 
 1996 c 439 art 4 s 3,4