1.1                          A bill for an act 
  1.2             relating to occupations and professions; heating, 
  1.3             ventilating, and air filtering; creating an advisory 
  1.4             council and prescribing its powers and duties; 
  1.5             providing rulemaking; prescribing penalties; 
  1.6             appropriating money; amending Minnesota Statutes 1996, 
  1.7             section 116J.70, subdivision 2a; proposing coding for 
  1.8             new law as Minnesota Statutes, chapter 16C. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [16C.01] [DEFINITIONS.] 
  1.11     Subdivision 1.  [APPLICABILITY.] For purposes of this 
  1.12  chapter, the definitions in this section have the meanings given 
  1.13  them. 
  1.14     Subd. 2.  [APPRENTICE HEATING AND VENTILATING INSTALLER.] 
  1.15  "Apprentice heating and ventilating installer" is any person, 
  1.16  other than a licensed heating and ventilating installer or 
  1.17  licensed heating and ventilating contractor, who is engaged in 
  1.18  working as an employee of a licensed heating and ventilating 
  1.19  contractor under the supervision of a licensed heating and 
  1.20  ventilating installer when performing work on a heating and 
  1.21  ventilating system.  
  1.22     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  1.23  commissioner of administration. 
  1.24     Subd. 4.  [CONTRACTOR.] "Contractor" means a person, firm, 
  1.25  partnership, corporation, or other organization that performs 
  1.26  work under section 16C.02, subdivision 1. 
  1.27     Subd. 5.  [HEATING AND VENTILATING ADVISORY 
  2.1   COUNCIL.] "Heating and ventilating advisory council" means the 
  2.2   advisory council created by the commissioner under section 
  2.3   16C.04. 
  2.4      Subd. 6.  [HEATING AND VENTILATING CONTRACTOR.] "Heating 
  2.5   and ventilating contractor" means a person, firm, partnership, 
  2.6   limited liability company, corporation, or other organization or 
  2.7   entity that performs work on a heating and ventilating system 
  2.8   other than heating and ventilating system work on residential 
  2.9   real estate. 
  2.10     Subd. 7.  [HEATING AND VENTILATING INSTALLER.] "Heating and 
  2.11  ventilating installer" is any person who is personally working 
  2.12  on a heating and ventilating system.  
  2.13     Subd. 8.  [HEATING AND VENTILATING SYSTEM.] "Heating and 
  2.14  ventilating system" means a warm air heating, ventilating, or 
  2.15  air filtering system or appliance associated with those systems, 
  2.16  including, but not limited to, duct systems, warm air furnaces, 
  2.17  ventilation systems, air filtering systems, ducts, vents, vent 
  2.18  connectors, breaching, chimney liners, combustion air ducts, 
  2.19  gravity type venting systems, and power type venting systems. 
  2.20     Subd. 9.  [LICENSED CONTRACTOR.] "Licensed contractor" 
  2.21  means a person, firm, partnership, corporation, limited 
  2.22  liability company, or other organization holding a license to 
  2.23  perform work under section 16C.02, subdivision 1. 
  2.24     Subd. 10.  [MANAGING EMPLOYEE.] "Managing employee" means a 
  2.25  person who is regularly employed by a contractor and is actively 
  2.26  engaged in the business of heating and ventilating contracting 
  2.27  on behalf of the contractor. 
  2.28     Subd. 11.  [MUNICIPALITY.] "Municipality" means a 
  2.29  municipality as defined in section 16B.60, subdivision 3. 
  2.30     Subd. 12.  [QUALIFYING PERSON.] "Qualifying person" means 
  2.31  the individual who fulfills the examination and education 
  2.32  requirements for licensure on behalf of a licensed contractor. 
  2.33     Subd. 13.  [WORK.] "Work" means the erection, installation, 
  2.34  alteration, planning, repair, relocation, replacement, or design 
  2.35  of a heating and ventilating system or any of its related parts, 
  2.36  appliances, or equipment. 
  3.1      Sec. 2.  [16C.02] [LICENSING REQUIREMENTS.] 
  3.2      Subdivision 1.  [CONTRACTOR LICENSE.] No person, firm, 
  3.3   partnership, corporation, limited liability company, or other 
  3.4   organization may be in the business of performing work on 
  3.5   heating and ventilating systems unless it holds a valid license. 
  3.6      Subd. 2.  [QUALIFYING PERSON.] (a) The examination and 
  3.7   education requirements for contractor licensing under this 
  3.8   section must be fulfilled by a qualifying person designated by 
  3.9   the contractor.  For a sole proprietorship, the qualifying 
  3.10  person must be the proprietor or a managing employee.  For a 
  3.11  partnership, the qualifying person must be a general partner or 
  3.12  a managing employee.  For a limited liability company, the 
  3.13  qualifying person must be the chief manager or managing 
  3.14  employee.  For a corporation, the qualifying person must be a 
  3.15  majority shareholder, chief executive officers, or managing 
  3.16  employee. 
  3.17     (b) No person may act as a qualifying person for more than 
  3.18  the contractor unless: 
  3.19     (1) there is a common ownership of at least 25 percent of 
  3.20  each contractor for which the person acts as the qualifying 
  3.21  person; or 
  3.22     (2) one contractor is a subsidiary of another contractor 
  3.23  for which the same person acts as a qualifying person.  The term 
  3.24  "subsidiary" means a corporation of which at least 25 percent is 
  3.25  owned by the parent corporation. 
  3.26     (c) A licensed contractor must notify the commissioner of 
  3.27  administration within one month after the departure or 
  3.28  disqualification of the licensee's qualifying person for any 
  3.29  reason.  The licensed contractor shall have six months from the 
  3.30  qualifying person's departure or disqualification to obtain a 
  3.31  new qualifying person.  Failure to secure a new qualifying 
  3.32  person within this time will result in automatic termination of 
  3.33  the contractor's license. 
  3.34     Subd. 3.  [LICENSED INSTALLERS AND APPRENTICE 
  3.35  INSTALLERS.] No person may personally perform work on a heating 
  3.36  and ventilating system unless the person is an employee of a 
  4.1   licensed contractor and the person is either:  
  4.2      (1) a licensed heating and ventilating installer; or 
  4.3      (2) an apprentice heating and ventilating installer.  
  4.4      Subd. 4.  [RESPONSIBILITIES OF CONTRACTOR.] The licensed 
  4.5   contractor is responsible for compliance with all applicable 
  4.6   codes of all work performed by persons who are employed by a 
  4.7   licensed contractor. 
  4.8      Subd. 5.  [EXEMPTIONS.] The license requirements under 
  4.9   subdivisions 1 and 3 do not apply to: 
  4.10     (1) a material person, manufacturer, or retailer furnishing 
  4.11  finished products, materials, or articles of merchandise who 
  4.12  does not install or attach the items; 
  4.13     (2) an owner or owners of residential real estate who build 
  4.14  or improve residential real estate and who do the work 
  4.15  themselves; 
  4.16     (3) a person whose profession is otherwise subject to state 
  4.17  licensing when engaged in the activity that is the subject 
  4.18  licensure, including, but not limited to, plumbers, 
  4.19  electricians, pipefitters engaged in high pressure piping, and 
  4.20  persons involved in fire protection; or 
  4.21     (4) Habitat for Humanity, Builders Outreach Foundation, and 
  4.22  Heat's On, and their individual volunteers when engaged in 
  4.23  activities on their behalf. 
  4.24     Sec. 3.  [16C.03] [BOND; INSURANCE.] 
  4.25     Subdivision 1.  [BOND.] Licensed heating and ventilating 
  4.26  contractors must post a license bond of at least $25,000 with 
  4.27  the commissioner, conditioned that the applicant shall 
  4.28  faithfully perform the duties and in all things comply with all 
  4.29  laws, ordinances, and rules pertaining to the license or permit 
  4.30  applied for and all contracts entered into. The annual bond must 
  4.31  be continuous and maintained for as long as the licensee remains 
  4.32  licensed.  The aggregate liability of the surety on the bond to 
  4.33  any and all persons, regardless of the number of claims made 
  4.34  against the bond, may not exceed the amount of the bond.  The 
  4.35  bond may be canceled as to future liability by the surety upon 
  4.36  30 days' written notice mailed to the commissioner by regular 
  5.1   mail. 
  5.2      Subd. 2.  [INSURANCE.] Licensed heating and ventilating 
  5.3   contractors must have public liability insurance with limits of 
  5.4   at least $100,000 per occurrence, which must include at least 
  5.5   $10,000 property damage coverage.  The commissioner may increase 
  5.6   the minimum amount of insurance required if the commissioner 
  5.7   considers it to be in the public interest and necessary to 
  5.8   protect the interests of Minnesota consumers. 
  5.9      Sec. 4.  [16C.04] [ADVISORY COUNCIL.] 
  5.10     Subdivision 1.  [HEATING AND VENTILATING ADVISORY COUNCIL.] 
  5.11  The commissioner shall appoint eight persons to the heating and 
  5.12  ventilating advisory council.  At least four persons must 
  5.13  represent heating and ventilating contractors; at least one of 
  5.14  these members must represent contractors whose residential 
  5.15  heating and ventilating work represents at least 40 percent.  
  5.16  One member must be a representative of the commissioner; one 
  5.17  member must be a local official; one member must be a public 
  5.18  member; and one member must be a representative of organized 
  5.19  labor designated by the Minnesota AFL-CIO building trades.  The 
  5.20  member representing organized labor is not subject to the 
  5.21  membership term limits under section 15.059.  Of these eight 
  5.22  members, at least two members of the council must reside in 
  5.23  greater Minnesota, as defined in section 116O.02, subdivision 5. 
  5.24     Subd. 2.  [MEMBERSHIP TERMS.] The membership terms, 
  5.25  compensation, removal, and filling of vacancies of the council 
  5.26  are as provided in section 15.059. 
  5.27     Subd. 3.  [DUTIES.] The council shall advise the 
  5.28  commissioner on matters related to this chapter. 
  5.29     Sec. 5.  [16C.05] [FEES.] 
  5.30     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
  5.31  persons licensed under this chapter is $....... per year for a 
  5.32  licensed contractor and $....... per year for a licensed 
  5.33  installer.  The commissioner may adjust the fees under section 
  5.34  16A.1285 to recover the costs of administration and 
  5.35  enforcement.  The fees must be limited to the cost of license 
  5.36  administration and enforcement and must be deposited in the 
  6.1   state treasury and credited to the special revenue.  A fee of 
  6.2   $25 will be charged for a duplicate contractor or installer 
  6.3   license or an amended contractor license reflecting a change of 
  6.4   business name, address, or qualification. 
  6.5      Subd. 2.  [LOCAL SURCHARGE.] A local government unit may 
  6.6   place an amount no greater than $5 on each building permit that 
  6.7   requires a licensed heating and ventilating contractor for the 
  6.8   purpose of license verification.  The local government may 
  6.9   verify a license by facsimile machine. 
  6.10     Sec. 6.  [16C.06] [CONTINUING EDUCATION.] 
  6.11     Subdivision 1.  [STANDARDS.] The commissioner, in 
  6.12  consultation with the council, shall adopt standards for 
  6.13  continuing education requirements and course approval for 
  6.14  licensed contractors.  The standards must include requirements 
  6.15  for continuing education in the implementation of energy codes 
  6.16  applicable to buildings and other building codes.  Except for 
  6.17  the course content, the standards must be consistent with the 
  6.18  standards established for other professions licensed by the 
  6.19  state of Minnesota. 
  6.20     Subd. 2.  [HOURS.] A qualifying person of a licensee must 
  6.21  provide proof of completion of seven hours of continuing 
  6.22  education per year. 
  6.23     Subd. 3.  [ACCESSIBILITY.] To the extent possible, the 
  6.24  commissioner shall ensure that continuing education courses are 
  6.25  offered throughout the state and are easily accessible to all 
  6.26  licensees. 
  6.27     Sec. 7.  [16C.07] [NOTICE OF CHANGE.] 
  6.28     Written notice must be given to the commissioner by each 
  6.29  licensed contractor of a change in personal name, trade name, 
  6.30  qualifying person, address, or business location no later than 
  6.31  15 business days after the change.  The commissioner shall issue 
  6.32  an amended license, if required, for the unexpired period. 
  6.33     Sec. 8.  [16C.08] [APPLICATION AND EXAMINATION.] 
  6.34     Subdivision 1.  [FORM.] An applicant for a contractor or 
  6.35  installer license under this chapter must submit an application 
  6.36  to the commissioner, under oath, on a form prescribed by the 
  7.1   commissioner.  Within 30 business days of receiving all required 
  7.2   information, the commissioner must act on the license request.  
  7.3   If one of the categories in the application does not apply, the 
  7.4   applicant must state the reason.  The commissioner may refuse to 
  7.5   issue a license if the application is not complete or contains 
  7.6   unsatisfactory information. 
  7.7      Subd. 2.  [CONTENTS.] The application for a contractor's 
  7.8   license must include the following information regarding the 
  7.9   applicant: 
  7.10     (1) Minnesota workers' compensation insurance certificate; 
  7.11     (2) employment insurance account number; 
  7.12     (3) certificate of liability insurance; 
  7.13     (4) name and address of the applicant: 
  7.14     (i) name and address of the applicant's qualifying person, 
  7.15  if other than applicant; and 
  7.16     (ii) if the applicant is a sole proprietorship, the name 
  7.17  and address of the sole proprietor; if the applicant is a 
  7.18  partnership, the name and address of each partner; if the 
  7.19  applicant is a limited liability company, the name and address 
  7.20  of each governor and manager; if the applicant is a corporation, 
  7.21  the name and address of each of the corporate officers, 
  7.22  directors, and all shareholders holding more than ten percent of 
  7.23  the outstanding stock in the corporation; 
  7.24     (5) whether the applicant, an employee, or qualifying 
  7.25  person has ever been licensed in this or any other state and has 
  7.26  had a professional or vocational license refused, suspended, or 
  7.27  revoked, or has been the subject of administrative action; 
  7.28     (6) whether the applicant, qualifying person, or any of the 
  7.29  applicant's corporate or partnership directors, limited 
  7.30  liability company governors, officers, limited or general 
  7.31  partners, managers, all shareholders holding more than ten 
  7.32  percent of the share of the corporation that have been issued, 
  7.33  or all members holding more than ten percent of the voting power 
  7.34  of the membership interests that have been issued, has been 
  7.35  convicted of a crime that either related directly to the 
  7.36  business for which the license is sought or involved fraud, 
  8.1   misrepresentation, or misuse of funds; has suffered a judgment 
  8.2   in a civil action involving fraud, misrepresentation, 
  8.3   negligence, or breach of contract, or conversion within the ten 
  8.4   years prior to the submission of the application; or has had 
  8.5   government license or permit suspended or revoked as a result of 
  8.6   an action brought by a federal, state, or local governmental 
  8.7   unit or agency in this or another state; 
  8.8      (7) the applicant's and qualifying person's business 
  8.9   history for the past five years and whether the applicant, an 
  8.10  employee, or qualifying person has ever filed for bankruptcy or 
  8.11  protection from creditors or has any unsatisfied judgments 
  8.12  against the applicant, an employee, or qualifying person; 
  8.13     (8) where the applicant is a firm, partnership, sole 
  8.14  proprietorship, limited liability company, corporation, or 
  8.15  association, whether there has been a sale or transfer of the 
  8.16  business or other change in ownership, control, or name in the 
  8.17  last five years and the details of the change, and the names and 
  8.18  addresses of all prior, predecessor, subsidiary, affiliated, 
  8.19  parent, or related entities, and whether each such entity, or 
  8.20  its owners, officers, directors, members or shareholders holding 
  8.21  more than ten percent of the stock, or an employee has ever 
  8.22  taken or been subject to an action that is subject to clause 
  8.23  (5), (6), or (7) in the last ten years; and 
  8.24     (9) whether the qualifying person is the qualifying person 
  8.25  for more than one licensee.  For purposes of this subdivision, 
  8.26  applicant includes employees who exercise management or policy 
  8.27  control over heating and ventilating contracting in the state of 
  8.28  Minnesota, including affiliates, partners, directors, governors, 
  8.29  officers, limited or general partners, managers, all 
  8.30  shareholders holding more than ten percent of the shares that 
  8.31  have been issued, a shareholder holding more than ten percent of 
  8.32  the voting power of the shares that have been issued, or all 
  8.33  members holding more than ten percent of the membership 
  8.34  interests that have been issued or more than ten percent of the 
  8.35  voting power of the membership interests that have been issued. 
  8.36     The commissioner may require further information as the 
  9.1   commissioner deems appropriate to administer the provisions and 
  9.2   further the purposes of this chapter and shall take reasonable 
  9.3   steps to verify the information on all applications. 
  9.4      Subd. 3.  [LICENSE EXAMINATION.] (a) Each qualifying person 
  9.5   of a licensed contractor must satisfactorily complete a written 
  9.6   examination. The commissioner shall establish the examination 
  9.7   qualifications, including related experience and education, the 
  9.8   examination procedure, and the examination.  The examination 
  9.9   must include, at a minimum, the following areas: 
  9.10     (1) appropriate knowledge of technical terms commonly used 
  9.11  and the knowledge of reference materials and code books to be 
  9.12  used for technical information; and 
  9.13     (2) understanding of the general principles of business 
  9.14  management and other pertinent state laws. 
  9.15     The council shall advise the commissioner on the grading, 
  9.16  monitoring, and updating of examinations. 
  9.17     The contractor must provide evidence that they have 
  9.18  complied with the continuing education requirements of section 
  9.19  16C.06 in order for a renewal license to be issued. 
  9.20     (b) The examinations must be designed by the commissioner 
  9.21  in conjunction with the state building code division.  The 
  9.22  commissioner and the state building code division shall seek 
  9.23  advice on the grading, monitoring, and updating of examinations 
  9.24  and continuing education standards and requirements from the 
  9.25  Minnesota sheet metal air conditioning roof contractors 
  9.26  association, the Minnesota plumbing heating and cooling 
  9.27  contractors association, and a representative of an 
  9.28  investor-owned natural gas utility with experience working on 
  9.29  heating and ventilating systems. 
  9.30     Subd. 4.  [INSTALLER APPLICATION AND EXAM.] (a) The 
  9.31  commissioner shall establish the information required for the 
  9.32  installer's license application.  That information must contain 
  9.33  sufficient information for the commissioner to verify that the 
  9.34  applicant has the work experience and education required under 
  9.35  subdivision 5 and other information as the commissioner deems 
  9.36  appropriate to administer the provisions and further the 
 10.1   purposes of this chapter. 
 10.2      (b) Each installer must satisfactorily complete a written 
 10.3   examination in order to obtain a license.  The commissioner 
 10.4   shall establish the examination procedure and the examination.  
 10.5   The examination must include, at a minimum, the following areas: 
 10.6      (1) appropriate knowledge of technical terms used; 
 10.7      (2) appropriate knowledge of applicable codes, such as the 
 10.8   uniform mechanical code, uniform building code, the energy code, 
 10.9   as adopted in Minnesota; and 
 10.10     (3) any other knowledge required to properly perform work 
 10.11  on heating and ventilating systems.  
 10.12     The council shall advise the commissioner on the grading, 
 10.13  monitoring, and updating of examinations.  
 10.14     Subd. 5.  [ELIGIBILITY.] (a) Any person may take the 
 10.15  license examination.  After satisfactorily completing the 
 10.16  examination, an individual may be designated as the qualifying 
 10.17  person for a licensee at any time, if the individual has also 
 10.18  fulfilled the continuing education requirements set forth in 
 10.19  section 16C.06 in the manner required for the qualifying person 
 10.20  of a licensee. 
 10.21     (b) An apprentice heating and ventilating installer who has 
 10.22  completed four years of practical heating and ventilating work 
 10.23  experience and who has either: 
 10.24     (1) completed a heating and ventilating apprentice program 
 10.25  registered with the department of labor and industry, division 
 10.26  of voluntary apprenticeship; or 
 10.27     (2) has engaged in equivalent education, shall be eligible 
 10.28  to take the licensed installer's examination.  The commissioner 
 10.29  may adopt rules to evaluate whether the person's past practical 
 10.30  heating and ventilating work experience and education is 
 10.31  applicable in preparing for the licensed installer examination.  
 10.32     Sec. 9.  [16C.09] [LOCAL LICENSES.] 
 10.33     Except as provided in section 16C.14, a political 
 10.34  subdivision may not require a person licensed under this chapter 
 10.35  to also be licensed under an ordinance, law, rule, or regulation 
 10.36  of the political subdivision.  This section does not prohibit 
 11.1   charges for building permits or other charges not directly 
 11.2   related to licensure. 
 11.3      Sec. 10.  [16C.10] [DENIAL, SUSPENSION, OR REVOCATION OF 
 11.4   LICENSES.] 
 11.5      Subdivision 1.  [CAUSE.] The commissioner may by order 
 11.6   deny, suspend, or revoke a license or may censure a licensee, 
 11.7   and may impose a civil penalty of not more than $2,000 per 
 11.8   violation, if the commissioner finds that the order is in the 
 11.9   public interest, and that the applicant, licensee, or affiliate 
 11.10  of an applicant or licensee, or other agent, owner, partner, 
 11.11  director, governor, shareholder, member, officer, qualifying 
 11.12  person, or managing employee of the applicant or licensee or any 
 11.13  person occupying a similar status or performing similar 
 11.14  functions: 
 11.15     (1) has filed an application for a license that is 
 11.16  incomplete in any material respect or contains a statement that, 
 11.17  in light of the circumstances under which it is made, is false 
 11.18  or misleading with respect to any material fact; 
 11.19     (2) has engaged in a fraudulent, deceptive, or dishonest 
 11.20  practice; 
 11.21     (3) is permanently or temporarily enjoined by a court of 
 11.22  competent jurisdiction from engaging in or continuing any 
 11.23  conduct or practice involving any aspect of the business; 
 11.24     (4) has failed to reasonably supervise employees, agents, 
 11.25  subcontractors, or salespersons, or has performed negligently or 
 11.26  in breach of contract, so as to cause injury or harm to the 
 11.27  public; 
 11.28     (5) has violated or failed to comply with any provision of 
 11.29  this chapter or any rule or order under this chapter; 
 11.30     (6) has been shown to be incompetent, untrustworthy, or 
 11.31  financially irresponsible; 
 11.32     (7) has been convicted of a violation of the state building 
 11.33  code; 
 11.34     (8) has failed to use the proceeds of any payment made to 
 11.35  the licensee for the construction of, or any improvement to, 
 11.36  real estate for the payment of labor, skill, material, and 
 12.1   machinery contributed to the construction or improvement, 
 12.2   knowing that the cost of any labor performed, or skill, 
 12.3   material, or machinery furnished for the improvement remains 
 12.4   unpaid; 
 12.5      (9) has not furnished to the person making payment either a 
 12.6   valid lien waiver as to any unpaid labor performed, or skill, 
 12.7   material, or machinery furnished for an improvement, or a 
 12.8   payment bond in the basic amount of the contract price for the 
 12.9   improvement conditioned for the prompt payment to any person or 
 12.10  persons entitled to payment; 
 12.11     (10) has had a judgment entered against them for failure to 
 12.12  make payments to employees or subcontractors, and all appeals of 
 12.13  the judgment have been exhausted or the period for appeal has 
 12.14  expired; 
 12.15     (11) if unlicensed, has obtained a building permit by the 
 12.16  fraudulent use of a fictitious license number or the license 
 12.17  number of another, or, if licensed, has knowingly allowed an 
 12.18  unlicensed person to use the licensee's license number for the 
 12.19  purpose of fraudulently obtaining a building permit; or 
 12.20     (12) has made use of forged mechanics' lien waivers under 
 12.21  chapter 514. 
 12.22     Subd. 2.  [ADMINISTRATIVE ACTION.] The commissioner may use 
 12.23  the enforcement powers granted to the commissioner of commerce 
 12.24  under section 45.027 in any action taken by the commissioner in 
 12.25  connection with the administration of this chapter. 
 12.26     Nothing in this section prevents the commissioner from 
 12.27  denying, suspending, revoking, or restricting a license, or from 
 12.28  censuring a licensee based on acts or omissions not specifically 
 12.29  enumerated in this subdivision. 
 12.30     Sec. 11.  [16C.11] [PENALTIES.] 
 12.31     Subdivision 1.  [MISDEMEANOR.] A person required to be 
 12.32  licensed under this chapter who performs unlicensed work is 
 12.33  guilty of a misdemeanor. 
 12.34     Subd. 2.  [LIEN RIGHTS.] An unlicensed person who knowingly 
 12.35  violates this section has no right to claim a lien under section 
 12.36  514.01 and the lien is void.  Nothing in this section affects 
 13.1   the lien rights of material suppliers and licensed contractors 
 13.2   to the extent provided by law. 
 13.3      Subd. 3.  [COMMISSIONER ACTION.] The commissioner may bring 
 13.4   actions, including cease and desist actions, against a person 
 13.5   licensed or required to be licensed under this chapter to 
 13.6   protect the public health, safety, and welfare. 
 13.7      Sec. 12.  [16C.12] [BUILDING PERMIT CONDITIONED ON 
 13.8   LICENSURE.] 
 13.9      (a) A political subdivision shall not issue a building 
 13.10  permit to an unlicensed contractor who is required to be 
 13.11  licensed under this chapter.  The political subdivision shall 
 13.12  report the contractor applying for a building permit to the 
 13.13  commissioner who may bring an action against the person. 
 13.14     (b) A local government unit may not place a surcharge on a 
 13.15  license fee, and may not charge a separate fee to heating and 
 13.16  ventilating contractors. 
 13.17     Sec. 13.  [16C.13] [LICENSE RENEWAL.] 
 13.18     Subdivision 1.  [RENEWAL.] Licensed contractors and 
 13.19  installers whose applications have been properly and timely 
 13.20  filed and who have not received notice of denial of renewal are 
 13.21  considered to have been approved for renewal and may continue to 
 13.22  transact business whether or not the renewed license has been 
 13.23  received.  Applications are timely if received or postmarked by 
 13.24  March 1 of the renewal year.  Applications must be made on a 
 13.25  form approved by the commissioner. 
 13.26     Subd. 2.  [ANNUAL RENEWAL.] A license issued or renewed 
 13.27  after August 1, 1998, must be renewed annually. 
 13.28     Subd. 3.  [FAILURE TO APPLY.] A person who has failed to 
 13.29  make a timely application for renewal of a license by March 31 
 13.30  of the renewal year is unlicensed until the license has been 
 13.31  issued by the commissioner and is received by the applicant. 
 13.32     Subd. 4.  [REEXAMINATION NOT REQUIRED.] An examination is 
 13.33  not required for the renewal of a contractor or installer 
 13.34  license, except that a licensee who has failed to renew a 
 13.35  license for two years must retake the appropriate examination.  
 13.36  The commissioner may stagger the dates of license renewal. 
 14.1      Sec. 14.  [16C.14] [EXCEPTION.] 
 14.2      (a) The license requirements under section 16C.02 do not 
 14.3   apply to a contractor licensed by cities whose licensing 
 14.4   requirements exceed the requirements set forth in this chapter, 
 14.5   as determined by the commissioner of administration while 
 14.6   performing work on heating and ventilating systems in that city 
 14.7   where the contractor holds the appropriate city license or 
 14.8   licenses.  The license requirements under section 16C.02 do not 
 14.9   apply to a heating and ventilating contractor licensed by the 
 14.10  city of Saint Paul or the city of Minneapolis when performing 
 14.11  heating and ventilating work within the legal boundaries of one 
 14.12  of those municipalities, and holds the appropriating city 
 14.13  license or licenses. 
 14.14     (b) The commissioner may contract with the city of 
 14.15  Minneapolis and the city of Saint Paul to administer this 
 14.16  licensing program. 
 14.17     Sec. 15.  [16C.15] [LICENSE NUMBER; ADVERTISING.] 
 14.18     Subdivision 1.  [LICENSE NUMBER MUST BE DISPLAYED.] The 
 14.19  license number of a licensed contractor must be placed on all 
 14.20  building permits and building permit applications made to or 
 14.21  issued by the state or a political subdivision.  In 
 14.22  jurisdictions that have not adopted the state building code, the 
 14.23  license number must be placed on the site plan review or zoning 
 14.24  permit.  The license number must be on all contracts to perform 
 14.25  work for which a license is required.  The contractor's name and 
 14.26  license number must be displayed on all of the contractor's 
 14.27  vehicles. 
 14.28     Subd. 2.  [ADVERTISING.] The license number of a licensed 
 14.29  contractor must appear in any display advertising by that 
 14.30  licensee. 
 14.31     Subd. 3.  [BIDS AND CONTRACTS.] Bids and contracts entered 
 14.32  into by a licensed contractor must state that the person is 
 14.33  licensed and must state the license number. 
 14.34     The advisory council may develop materials and programs to 
 14.35  educate the public concerning licensing requirements and methods 
 14.36  for reporting unlicensed activity. 
 15.1      Sec. 16.  [16C.16] [CONFLICT OF LAWS.] 
 15.2      This chapter is not intended to conflict with and does not 
 15.3   supersede sections 326.37 to 326.45; 326.46 to 326.521; or 
 15.4   183.375 to 183.62.  This chapter supersedes sections 326.02 to 
 15.5   326.15 to the extent those sections conflict with this chapter. 
 15.6      Sec. 17.  [16C.17] [RULES.] 
 15.7      The commissioner may adopt rules to: 
 15.8      (1) set a fee under section 16C.06 for processing a heating 
 15.9   and ventilating license application; 
 15.10     (2) establish criteria for the qualifications of heating 
 15.11  and ventilating contractors and installers; and 
 15.12     (3) establish procedures for appeals of decisions of the 
 15.13  commissioner under chapter 14 and procedures allowing the 
 15.14  commissioner, before issuing a decision, to seek from the 
 15.15  heating and ventilating advisory council, and other 
 15.16  knowledgeable persons in the installation, construction, and 
 15.17  repair of heating and ventilating systems. 
 15.18     Sec. 18.  Minnesota Statutes 1996, section 116J.70, 
 15.19  subdivision 2a, is amended to read: 
 15.20     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
 15.21  "license" does not include the following:  
 15.22     (1) any occupational license or registration issued by a 
 15.23  licensing board listed in section 214.01 or any occupational 
 15.24  registration issued by the commissioner of health pursuant to 
 15.25  section 214.13; 
 15.26     (2) any license issued by a county, home rule charter city, 
 15.27  statutory city, township, or other political subdivision; 
 15.28     (3) any license required to practice the following 
 15.29  occupation regulated by the following sections:  
 15.30     (a) abstracters regulated pursuant to chapter 386; 
 15.31     (b) accountants regulated pursuant to chapter 326; 
 15.32     (c) adjusters regulated pursuant to chapter 72B; 
 15.33     (d) architects regulated pursuant to chapter 326; 
 15.34     (e) assessors regulated pursuant to chapter 270; 
 15.35     (f) athletic trainers regulated pursuant to chapter 148; 
 15.36     (g) attorneys regulated pursuant to chapter 481; 
 16.1      (h) auctioneers regulated pursuant to chapter 330; 
 16.2      (i) barbers regulated pursuant to chapter 154; 
 16.3      (j) beauticians regulated pursuant to chapter 155A; 
 16.4      (k) boiler operators regulated pursuant to chapter 183; 
 16.5      (l) chiropractors regulated pursuant to chapter 148; 
 16.6      (m) collection agencies regulated pursuant to chapter 332; 
 16.7      (n) cosmetologists regulated pursuant to chapter 155A; 
 16.8      (o) dentists, registered dental assistants, and dental 
 16.9   hygienists regulated pursuant to chapter 150A; 
 16.10     (p) detectives regulated pursuant to chapter 326; 
 16.11     (q) electricians regulated pursuant to chapter 326; 
 16.12     (r) embalmers regulated pursuant to chapter 149; 
 16.13     (s) engineers regulated pursuant to chapter 326; 
 16.14     (t) insurance brokers and salespersons regulated pursuant 
 16.15  to chapter 60A; 
 16.16     (u) certified interior designers regulated pursuant to 
 16.17  chapter 326; 
 16.18     (v) midwives regulated pursuant to chapter 148; 
 16.19     (w) morticians regulated pursuant to chapter 149; 
 16.20     (x) nursing home administrators regulated pursuant to 
 16.21  chapter 144A; 
 16.22     (y) optometrists regulated pursuant to chapter 148; 
 16.23     (z) osteopathic physicians regulated pursuant to chapter 
 16.24  147; 
 16.25     (aa) pharmacists regulated pursuant to chapter 151; 
 16.26     (bb) physical therapists regulated pursuant to chapter 148; 
 16.27     (cc) physician assistants regulated pursuant to chapter 
 16.28  147A; 
 16.29     (dd) physicians and surgeons regulated pursuant to chapter 
 16.30  147; 
 16.31     (ee) plumbers regulated pursuant to chapter 326; 
 16.32     (ff) podiatrists regulated pursuant to chapter 153; 
 16.33     (gg) practical nurses regulated pursuant to chapter 148; 
 16.34     (hh) professional fund raisers regulated pursuant to 
 16.35  chapter 309; 
 16.36     (ii) psychologists regulated pursuant to chapter 148; 
 17.1      (jj) real estate brokers, salespersons, and others 
 17.2   regulated pursuant to chapters 82 and 83; 
 17.3      (kk) registered nurses regulated pursuant to chapter 148; 
 17.4      (ll) securities brokers, dealers, agents, and investment 
 17.5   advisers regulated pursuant to chapter 80A; 
 17.6      (mm) steamfitters regulated pursuant to chapter 326; 
 17.7      (nn) teachers and supervisory and support personnel 
 17.8   regulated pursuant to chapter 125; 
 17.9      (oo) veterinarians regulated pursuant to chapter 156; 
 17.10     (pp) water conditioning contractors and installers 
 17.11  regulated pursuant to chapter 326; 
 17.12     (qq) water well contractors regulated pursuant to chapter 
 17.13  103I; 
 17.14     (rr) water and waste treatment operators regulated pursuant 
 17.15  to chapter 115; 
 17.16     (ss) motor carriers regulated pursuant to chapter 221; 
 17.17     (tt) professional corporations regulated pursuant to 
 17.18  chapter 319A; 
 17.19     (uu) real estate appraisers regulated pursuant to chapter 
 17.20  82B; 
 17.21     (vv) residential building contractors, residential 
 17.22  remodelers, residential roofers, manufactured home installers, 
 17.23  and specialty contractors regulated pursuant to chapter 326; 
 17.24     (ww) heating and ventilating contractors regulated under 
 17.25  chapter 16C; 
 17.26     (4) any driver's license required pursuant to chapter 171; 
 17.27     (5) any aircraft license required pursuant to chapter 360; 
 17.28     (6) any watercraft license required pursuant to chapter 
 17.29  86B; 
 17.30     (7) any license, permit, registration, certification, or 
 17.31  other approval pertaining to a regulatory or management program 
 17.32  related to the protection, conservation, or use of or 
 17.33  interference with the resources of land, air, or water, which is 
 17.34  required to be obtained from a state agency or instrumentality; 
 17.35  and 
 17.36     (8) any pollution control rule or standard established by 
 18.1   the pollution control agency or any health rule or standard 
 18.2   established by the commissioner of health or any licensing rule 
 18.3   or standard established by the commissioner of human services.  
 18.4      Sec. 19.  [INITIAL TEMPORARY LICENSES AND FEES.] 
 18.5      Heating and ventilating contractors and installers must 
 18.6   obtain temporary licenses.  Until July 31, 1998, the license fee 
 18.7   is $....... per year for contractors and $....... per year for 
 18.8   installers.  Licensees will not be required to satisfy the 
 18.9   examination requirement of Minnesota Statutes, section 16C.09, 
 18.10  subdivision 4, until August 4, 1998.  Licenses will not be 
 18.11  issued or renewed after that date if the examination requirement 
 18.12  is not satisfied. 
 18.13     Sec. 20.  [APPROPRIATION.] 
 18.14     $....... is appropriated from the general fund to the 
 18.15  commissioner of administration to administer sections 1 to 18.  
 18.16     Sec. 21.  [EFFECTIVE DATE.] 
 18.17     This act is effective August 1, 1997, for licenses 
 18.18  effective on and after August 1, 1998.