1.1 	A bill for an act
1.2 	relating to housing; providing for the licensure of industrialized-modular building 
1.3 	contractors and salespeople; amending Minnesota Statutes 2004, sections 326.83, 
1.4 	by adding subdivisions; 326.84, subdivisions 1, 1b, 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 326.83, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 5a.Industrial-modular building. "Industrialized-modular building" 
1.9 	means any building which is of closed construction, meaning constructed in a manner 
1.10 	that concealed parts or that the processes of manufacture cannot be inspected at the 
1.11 	site, without disassembly, damage, or destruction, and which is made or assembled 
1.12 	in manufacturing facilities, off the building site, for installation, or assembly and 
1.13 	installation, on the building site. Industrialized-modular building includes, but is not 
1.14 	limited to, modular housing which is factory-built single-family and multifamily housing 
1.15 	including closed wall panelized housing and other modular, nonresidential buildings. 
1.16 	Industrialized-modular building does not include any structure subject to the requirements 
1.17 	of the National Manufactured Home Construction and Safety Standards Act of 1974.

1.18 	Sec. 2. Minnesota Statutes 2004, section 326.83, is amended by adding a subdivision 
1.19 	to read:
1.20 		Subd. 5b.Industrialized-modular building contractor. "Industrialized-modular 
1.21 	building contractor" means a person who is a licensed residential contractor as defined in 
1.22 	subdivision 15 and is in the business of selling, constructing a foundation for, installing, 
1.23 	and on-site completion of industrialized-modular building as defined in subdivision 5a, 
2.1 	or of contracting or offering to contract with an owner for the sale, construction of a 
2.2 	foundation for, installation, and on-site completion of industrialized-modular buildings. 
2.3 	An industrialized-modular building contractor may also contract or offer to contract with 
2.4 	an owner to improve existing real estate by adding an industrialized-modular addition to 
2.5 	existing real estate.

2.6 	Sec. 3. Minnesota Statutes 2004, section 326.84, subdivision 1, is amended to read:
2.7 		Subdivision 1.Persons required to be licensed. A person who meets the definition 
2.8 	of a residential remodeler as defined in section  326.83, subdivision 16, or a residential 
2.9 	building contractor as defined in section  326.83, subdivision 15, must be licensed as a 
2.10 	residential building contractor or residential remodeler. A person who meets the definition 
2.11 	of industrialized-modular building contractor as defined in section 326.83, subdivision 
2.12 	5b, must be licensed as a residential building contractor as defined in section 326.83, 
2.13 	subdivision 15.

2.14 	Sec. 4. Minnesota Statutes 2004, section 326.84, subdivision 1b, is amended to read:
2.15 		Subd. 1b.Prohibition. Except as provided in subdivision 3, no persons required 
2.16 	to be licensed by subdivision 1 may act or hold themselves out as residential building 
2.17 	contractors or,  residential remodelers, or industrialized-modular building contractors for 
2.18 	compensation without a valid license issued by the commissioner.

2.19 	Sec. 5. Minnesota Statutes 2004, section 326.84, subdivision 3, is amended to read:
2.20 		Subd. 3.Exemptions. The license requirement does not apply to:
2.21 	(1) an employee of a licensee performing work for the licensee;
2.22 	(2) a material person, manufacturer, or retailer furnishing finished products, 
2.23 	materials, or articles of merchandise who does not install or attach the items;
2.24 	(3) an industrialized-modular buildings manufacturer;
2.25 	(3) (4)  an owner or owners of residential real estate who build or improve residential 
2.26 	real estate and who do the work themselves or jointly with the owner's own bona fide 
2.27 	employees. This exemption does not apply to a person who engages in a pattern of 
2.28 	building or improving real estate for purposes of resale. Such a pattern is presumed to exist 
2.29 	if the person constructs or improves more than one property within any 24-month period;
2.30 	(4) (5)  an architect or engineer engaging in professional practice as defined in this 
2.31 	chapter;
2.32 	(5) (6)  a person whose total gross annual receipts from projects regulated under this 
2.33 	section do not exceed $15,000;
3.1 	(6) (7)  a mechanical contractor;
3.2 	(7) (8)  a plumber, electrician, or other person whose profession is otherwise subject 
3.3 	to statewide licensing, when engaged in the activity which is the subject of licensure;
3.4 	(8) (9)  specialty contractors who provide only one special skill as defined in section  
3.5 	326.83; 
3.6 	(9) (10)  a school district, or a technical college governed under chapter 136F;
3.7 	(10) (11)  manufactured housing installers; and
3.8 	(11) (12)  Habitat for Humanity and Builders Outreach Foundation, and their 
3.9 	individual volunteers when engaged in activities on their behalf.
3.10 	To qualify for the exemption in clause (5) (6), a person must obtain a certificate of 
3.11 	exemption from licensing from the commissioner.
3.12 	A certificate of exemption will be issued upon the applicant's filing with the 
3.13 	commissioner, an affidavit stating that the applicant does not expect to exceed $15,000 
3.14 	in gross annual receipts derived from contracting activities during the calendar year for 
3.15 	which the exemption is requested.
3.16 	To renew the exemption in clause (5) (6), the applicant must file an affidavit stating 
3.17 	that the applicant did not exceed $15,000 in gross annual receipts during the past calendar 
3.18 	year, and the applicant does not expect to exceed $15,000 in gross annual receipts during 
3.19 	the calendar year for which the exemption is requested.
3.20 	If a person, operating under the exemption in clause (5) (6), exceeds $15,000 in gross 
3.21 	receipts during any calendar year, the person must immediately surrender the exemption 
3.22 	certificate and apply for the appropriate license. The person must remain licensed until 
3.23 	such time as the person's gross annual receipts during a calendar year fall below $15,000. 
3.24 	The person may then apply for this exemption for the next calendar year.

3.25 	Sec. 6. EFFECTIVE DATE.
 3.26 	Sections 1 to 5 are effective August 1, 2006.