1.1                          A bill for an act
  1.2             relating to occupations and professions; providing for 
  1.3             the licensing of commercial heating, ventilating, or 
  1.4             cooling system contractors and residential mechanical 
  1.5             contractors; appropriating money; amending Minnesota 
  1.6             Statutes 1994, sections 326.83, subdivisions 10 and 
  1.7             13, and by adding subdivisions; 326.85, subdivision 1; 
  1.8             and 326.94, subdivision 1; Minnesota Statutes 1995 
  1.9             Supplement, sections 116J.70, subdivision 2a; and 
  1.10            326.84, subdivision 3; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 326. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.14  116J.70, subdivision 2a, is amended to read: 
  1.15     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
  1.16  "license" does not include the following:  
  1.17     (1) any occupational license or registration issued by a 
  1.18  licensing board listed in section 214.01 or any occupational 
  1.19  registration issued by the commissioner of health pursuant to 
  1.20  section 214.13; 
  1.21     (2) any license issued by a county, home rule charter city, 
  1.22  statutory city, township, or other political subdivision; 
  1.23     (3) any license required to practice the following 
  1.24  occupation regulated by the following sections:  
  1.25     (a) abstracters regulated pursuant to chapter 386; 
  1.26     (b) accountants regulated pursuant to chapter 326; 
  1.27     (c) adjusters regulated pursuant to chapter 72B; 
  1.28     (d) architects regulated pursuant to chapter 326; 
  2.1      (e) assessors regulated pursuant to chapter 270; 
  2.2      (f) athletic trainers regulated pursuant to chapter 148; 
  2.3      (g) attorneys regulated pursuant to chapter 481; 
  2.4      (h) auctioneers regulated pursuant to chapter 330; 
  2.5      (i) barbers regulated pursuant to chapter 154; 
  2.6      (j) beauticians regulated pursuant to chapter 155A; 
  2.7      (k) boiler operators regulated pursuant to chapter 183; 
  2.8      (l) chiropractors regulated pursuant to chapter 148; 
  2.9      (m) collection agencies regulated pursuant to chapter 332; 
  2.10     (n) cosmetologists regulated pursuant to chapter 155A; 
  2.11     (o) dentists, registered dental assistants, and dental 
  2.12  hygienists regulated pursuant to chapter 150A; 
  2.13     (p) detectives regulated pursuant to chapter 326; 
  2.14     (q) electricians regulated pursuant to chapter 326; 
  2.15     (r) embalmers regulated pursuant to chapter 149; 
  2.16     (s) engineers regulated pursuant to chapter 326; 
  2.17     (t) insurance brokers and salespersons regulated pursuant 
  2.18  to chapter 60A; 
  2.19     (u) certified interior designers regulated pursuant to 
  2.20  chapter 326; 
  2.21     (v) midwives regulated pursuant to chapter 148; 
  2.22     (w) morticians regulated pursuant to chapter 149; 
  2.23     (x) nursing home administrators regulated pursuant to 
  2.24  chapter 144A; 
  2.25     (y) optometrists regulated pursuant to chapter 148; 
  2.26     (z) osteopathic physicians regulated pursuant to chapter 
  2.27  147; 
  2.28     (aa) pharmacists regulated pursuant to chapter 151; 
  2.29     (bb) physical therapists regulated pursuant to chapter 148; 
  2.30     (cc) physician assistants regulated pursuant to chapter 
  2.31  147A; 
  2.32     (dd) physicians and surgeons regulated pursuant to chapter 
  2.33  147; 
  2.34     (ee) plumbers regulated pursuant to chapter 326; 
  2.35     (ff) podiatrists regulated pursuant to chapter 153; 
  2.36     (gg) practical nurses regulated pursuant to chapter 148; 
  3.1      (hh) professional fund raisers regulated pursuant to 
  3.2   chapter 309; 
  3.3      (ii) psychologists regulated pursuant to chapter 148; 
  3.4      (jj) real estate brokers, salespersons, and others 
  3.5   regulated pursuant to chapters 82 and 83; 
  3.6      (kk) registered nurses regulated pursuant to chapter 148; 
  3.7      (ll) securities brokers, dealers, agents, and investment 
  3.8   advisers regulated pursuant to chapter 80A; 
  3.9      (mm) steamfitters regulated pursuant to chapter 326; 
  3.10     (nn) teachers and supervisory and support personnel 
  3.11  regulated pursuant to chapter 125; 
  3.12     (oo) veterinarians regulated pursuant to chapter 156; 
  3.13     (pp) water conditioning contractors and installers 
  3.14  regulated pursuant to chapter 326; 
  3.15     (qq) water well contractors regulated pursuant to chapter 
  3.16  103I; 
  3.17     (rr) water and waste treatment operators regulated pursuant 
  3.18  to chapter 115; 
  3.19     (ss) motor carriers regulated pursuant to chapter 221; 
  3.20     (tt) professional corporations regulated pursuant to 
  3.21  chapter 319A; 
  3.22     (uu) real estate appraisers regulated pursuant to chapter 
  3.23  82B; 
  3.24     (vv) residential building contractors, residential 
  3.25  remodelers, residential roofers, manufactured home installers, 
  3.26  residential mechanical contractors, commercial heating, 
  3.27  ventilating, or cooling system contractors, and specialty 
  3.28  contractors regulated pursuant to chapter 326; 
  3.29     (4) any driver's license required pursuant to chapter 171; 
  3.30     (5) any aircraft license required pursuant to chapter 360; 
  3.31     (6) any watercraft license required pursuant to chapter 
  3.32  86B; 
  3.33     (7) any license, permit, registration, certification, or 
  3.34  other approval pertaining to a regulatory or management program 
  3.35  related to the protection, conservation, or use of or 
  3.36  interference with the resources of land, air, or water, which is 
  4.1   required to be obtained from a state agency or instrumentality; 
  4.2   and 
  4.3      (8) any pollution control rule or standard established by 
  4.4   the pollution control agency or any health rule or standard 
  4.5   established by the commissioner of health or any licensing rule 
  4.6   or standard established by the commissioner of human services. 
  4.7      Sec. 2.  Minnesota Statutes 1994, section 326.83, 
  4.8   subdivision 10, is amended to read: 
  4.9      Subd. 10.  [RESIDENTIAL MECHANICAL CONTRACTOR.] 
  4.10  "Residential mechanical contractor" means a person, sole 
  4.11  proprietor, partnership, joint venture, corporation, or other 
  4.12  organization which is in the business of erection, installation, 
  4.13  alteration, repair, relocation, replacement, addition to, use, 
  4.14  or maintenance of any heating, ventilating, cooling, process gas 
  4.15  piping, plumbing, fire protection hydronic and steam heating, or 
  4.16  refrigeration systems, incinerators, or other miscellaneous 
  4.17  heat-producing appliance, piping, or equipment or appliances 
  4.18  associated with those systems which is performed on residential 
  4.19  real estate, as defined in subdivision 17, and includes work on 
  4.20  any single-family dwelling or multiple-family housing unit where 
  4.21  each individual family apartment is individually conditioned by 
  4.22  a separate and independent unit or system. 
  4.23     Sec. 3.  Minnesota Statutes 1994, section 326.83, is 
  4.24  amended by adding a subdivision to read: 
  4.25     Subd. 10a.  [HVAC SYSTEM.] "HVAC system" means a heating, 
  4.26  ventilating, or cooling system or appliance associated with 
  4.27  those systems, including, but not limited to, air conditioning 
  4.28  systems, duct systems, warm air furnaces ventilation systems, 
  4.29  ducts, vent, vent connectors, breeching, chimney liners, 
  4.30  combustion air ducts, gravity type venting systems, and power 
  4.31  type venting systems. 
  4.32     Sec. 4.  Minnesota Statutes 1994, section 326.83, is 
  4.33  amended by adding a subdivision to read: 
  4.34     Subd. 10b.  [HVAC COMMERCIAL CONTRACTOR.] "HVAC commercial 
  4.35  contractor" means a person, firm, partnership, limited liability 
  4.36  company, corporation, or other organization or entity that 
  5.1   performs work on an HVAC system other than HVAC system work on 
  5.2   residential real estate as defined in subdivision 17. 
  5.3      Sec. 5.  Minnesota Statutes 1994, section 326.83, 
  5.4   subdivision 13, is amended to read: 
  5.5      Subd. 13.  [PUBLIC MEMBER.] "Public member" means a person 
  5.6   who is not, and never was, a residential building contractor, 
  5.7   residential remodeler, residential mechanical contractor, 
  5.8   residential roofer, or specialty contractor or the spouse of 
  5.9   such person, or a person who has no, or never has had a, 
  5.10  material financial interest in acting as a residential building 
  5.11  contractor, residential remodeler, or specialty contractor or a 
  5.12  directly related activity. 
  5.13     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  5.14  326.84, subdivision 3, is amended to read: 
  5.15     Subd. 3.  [EXEMPTIONS.] The license requirement does not 
  5.16  apply to: 
  5.17     (1) an employee of a licensee performing work for the 
  5.18  licensee; 
  5.19     (2) a material person, manufacturer, or retailer furnishing 
  5.20  finished products, materials, or articles of merchandise who 
  5.21  does not install or attach the items; 
  5.22     (3) an owner or owners of residential real estate who build 
  5.23  or improve residential real estate and who do the work 
  5.24  themselves or jointly with the owner's own bona fide employees.  
  5.25  This exemption does not apply to a person who engages in a 
  5.26  pattern of building or improving real estate for purposes of 
  5.27  resale.  Such a pattern is presumed to exist if the person 
  5.28  constructs or improves more than one property within any 
  5.29  12-month period; 
  5.30     (4) an architect or engineer engaging in professional 
  5.31  practice as defined in this chapter; 
  5.32     (5) a person whose total gross annual receipts from 
  5.33  projects regulated under this section do not exceed $15,000; 
  5.34     (6) a mechanical contractor; 
  5.35     (7) a plumber, electrician, a person involved in fire 
  5.36  protection, or other person whose profession is otherwise 
  6.1   subject to statewide licensing, when engaged in the activity 
  6.2   which is the subject of licensure; 
  6.3      (8) (7) specialty contractors who provide only one special 
  6.4   skill as defined in section 326.83; 
  6.5      (9) (8) a school district, or a technical college governed 
  6.6   under chapter 136C; 
  6.7      (10) (9) manufactured housing installers; and 
  6.8      (11) (10) Habitat for Humanity and Builders Outreach 
  6.9   Foundation, and their individual volunteers when engaged in 
  6.10  activities on their behalf. 
  6.11     To qualify for the exemption in clause (5), a person must 
  6.12  obtain a certificate of exemption from licensing from the 
  6.13  commissioner.  
  6.14     A certificate of exemption will be issued upon the 
  6.15  applicant's filing with the commissioner, an affidavit stating 
  6.16  that the applicant does not expect to exceed $15,000 in gross 
  6.17  annual receipts derived from contracting activities during the 
  6.18  calendar year for which the exemption is requested. 
  6.19     To renew the exemption in clause (5), the applicant must 
  6.20  file an affidavit stating that the applicant did not exceed 
  6.21  $15,000 in gross annual receipts during the past calendar year, 
  6.22  and the applicant does not expect to exceed $15,000 in gross 
  6.23  annual receipts during the calendar year for which the exemption 
  6.24  is requested. 
  6.25     If a person, operating under the exemption in clause (5), 
  6.26  exceeds $15,000 in gross receipts during any calendar year, the 
  6.27  person must immediately surrender the exemption certificate and 
  6.28  apply for the appropriate license.  The person must remain 
  6.29  licensed until such time as the person's gross annual receipts 
  6.30  during a calendar year fall below $15,000.  The person may then 
  6.31  apply for this exemption for the next calendar year. 
  6.32     Sec. 7.  [326.843] [HVAC COMMERCIAL CONTRACTORS.] 
  6.33     HVAC commercial contractors are subject to all of the 
  6.34  requirements of sections 326.83 to 326.98 and 326.991, except 
  6.35  for the following: 
  6.36     (1) HVAC commercial contractors are not members of the 
  7.1   advisory council under section 326.85; 
  7.2      (2) the examination requirement of section 326.89, 
  7.3   subdivision 3, for HVAC commercial contractors shall be 
  7.4   satisfied by successful completion of a written examination 
  7.5   designed especially for HVAC commercial contractors.  The 
  7.6   examination must be designed by the commissioner in conjunction 
  7.7   with the state building code division.  The commissioner and the 
  7.8   state building code division shall seek advice on the grading, 
  7.9   monitoring, and updating of examinations and continuing 
  7.10  education standards and requirements from the Minnesota sheet 
  7.11  metal air conditioning, roof contractors association; 
  7.12     (3) HVAC commercial contractors are not subject to the 
  7.13  recovery fund in section 326.975; and 
  7.14     (4) a local government unit may not place a surcharge on a 
  7.15  license fee, and may not charge a separate fee to HVAC 
  7.16  commercial contractors. 
  7.17     Sec. 8.  [326.844] [RESIDENTIAL MECHANICAL CONTRACTORS.] 
  7.18     Residential mechanical contractors are subject to all of 
  7.19  the requirements of sections 326.83 to 326.98 and 326.991, 
  7.20  except the recovery fund in section 326.975. 
  7.21     Sec. 9.  Minnesota Statutes 1994, section 326.85, 
  7.22  subdivision 1, is amended to read: 
  7.23     Subdivision 1.  [BUILDERS ADVISORY COUNCIL.] The 
  7.24  commissioner shall appoint eight nine persons to the builders 
  7.25  advisory council.  At least three members of the council must 
  7.26  reside in greater Minnesota, as defined in section 116O.02, 
  7.27  subdivision 5.  At least one member of the council must be a 
  7.28  residential building contractor, one a residential 
  7.29  remodeler, one residential mechanical contractor, one a 
  7.30  specialty contractor, one a representative of the commissioner, 
  7.31  one a local building official, one a public member, and one a 
  7.32  representative of organized labor designated by the AFL-CIO, 
  7.33  this member shall not be subject to the membership term limits 
  7.34  under section 15.059.  
  7.35     Sec. 10.  Minnesota Statutes 1994, section 326.94, 
  7.36  subdivision 1, is amended to read: 
  8.1      Subdivision 1.  [BOND.] (a) Licensed manufactured home 
  8.2   installers and licensed roofers must post a license bond with 
  8.3   the commissioner, conditioned that the applicant shall 
  8.4   faithfully perform the duties and in all things comply with all 
  8.5   laws, ordinances, and rules pertaining to the license or permit 
  8.6   applied for and all contracts entered into.  The annual bond 
  8.7   must be continuous and maintained for so long as the licensee 
  8.8   remains licensed.  The aggregate liability of the surety on the 
  8.9   bond to any and all persons, regardless of the number of claims 
  8.10  made against the bond, may not exceed the amount of the bond.  
  8.11  The bond may be canceled as to future liability by the surety 
  8.12  upon 30 days written notice mailed to the commissioner by 
  8.13  regular mail. 
  8.14     (b) A licensed roofer must post a bond of at least $5,000.  
  8.15     (c) A licensed residential mechanical contractor must post 
  8.16  a bond of at least $50,000. 
  8.17     (d) An HVAC commercial contractor must post a bond of at 
  8.18  least $5,000. 
  8.19     Sec. 11.  [326.985] [CONFLICT OF LAWS.] 
  8.20     Sections 326.83 to 326.98 with regard to residential 
  8.21  mechanical contractors are not intended to conflict with and do 
  8.22  not supersede sections 326.37 to 326.45 which includes, but is 
  8.23  not limited to, all new plumbing installations, including 
  8.24  additions, extensions, alterations, and replacements connected 
  8.25  with any water or sewage disposal system; sections 326.46 to 
  8.26  326.521 which includes, but is not limited to, hot water or 
  8.27  steam heating boilers, any system of steam or ammonia piping; or 
  8.28  sections 183.375 to 183.62.  Sections 326.83 to 326.98 supersede 
  8.29  sections 326.02 to 326.15 to the extent those sections conflict 
  8.30  with this section or sections 326.83 to 326.98. 
  8.31     Sec. 12.  [TEMPORARY LICENSES AND FEES.] 
  8.32     Until March 31, 1997, the license fee for residential 
  8.33  mechanical contractors and HVAC commercial contractors is $75 
  8.34  per year.  Licensees shall not be required to satisfy the 
  8.35  examination requirement of Minnesota Statutes, section 326.89, 
  8.36  subdivision 3, until April 4, 1997.  Licenses shall not be 
  9.1   issued or renewed after that date if the examination requirement 
  9.2   is not satisfied.  The applicant must complete the examination 
  9.3   as specified in Minnesota Statutes, section 326.89, by April 1, 
  9.4   1997.  
  9.5      Sec. 13.  [REVISOR'S INSTRUCTIONS.] 
  9.6      The revisor shall recodify Minnesota Statutes, section 
  9.7   326.83, subdivision 10, as section 326.83, subdivision 15a. 
  9.8      Sec. 14.  [APPROPRIATION.] 
  9.9      $....... is appropriated for the fiscal year ending June 
  9.10  30, 1997, from the general fund to the commissioner of commerce 
  9.11  for purposes of sections 1 to 9. 
  9.12     Sec. 15.  [EFFECTIVE DATE.] 
  9.13     This act is effective January 1, 1997.