1.1                          A bill for an act 
  1.2             relating to occupations and professions; requiring 
  1.3             heating and ventilating contractors to be licensed; 
  1.4             creating an advisory council and prescribing its 
  1.5             powers and duties; providing for rulemaking; 
  1.6             prescribing penalties; appropriating money; amending 
  1.7             Minnesota Statutes 1998, section 116J.70, subdivision 
  1.8             2a; proposing coding for new law as Minnesota 
  1.9             Statutes, chapter 16F. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [16F.01] [DEFINITIONS.] 
  1.12     Subdivision 1.  [APPLICABILITY.] For purposes of this 
  1.13  chapter, the definitions in this section have the meanings given 
  1.14  them.  
  1.15     Subd. 2.  [APPLICANT.] "Applicant" means a contractor who 
  1.16  has filed an application for a license under this chapter. 
  1.17     Subd. 3.  [COMMERCIAL HEATING AND VENTILATING 
  1.18  CONTRACTOR.] "Commercial heating and ventilating contractor" 
  1.19  means a contractor that performs work on a commercial heating 
  1.20  and ventilating system. 
  1.21     Subd. 4.  [COMMERCIAL HEATING AND VENTILATING 
  1.22  SYSTEM.] "Commercial heating and ventilating system" means all 
  1.23  heating and ventilating systems except for residential heating 
  1.24  and ventilating systems. 
  1.25     Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
  1.26  commissioner of administration. 
  1.27     Subd. 6.  [CONTRACTOR.] "Contractor" means a person, firm, 
  2.1   partnership, limited liability company, corporation, or other 
  2.2   organization or entity that performs work on commercial or 
  2.3   residential heating and ventilating systems. 
  2.4      Subd. 7.  [HEATING AND VENTILATING SYSTEM.] "Heating and 
  2.5   ventilating system" means a heating, ventilating, or air 
  2.6   filtering system or an appliance associated with any of those 
  2.7   systems, including, but not limited to, ducts and duct systems, 
  2.8   ventilation systems, air filtering systems, warm air furnaces, 
  2.9   humidification and dehumidification systems, flue vents, vent 
  2.10  connectors from heating and ventilating appliances, breaching 
  2.11  and chimney liners, combustion air supplies, power type and 
  2.12  gravity venting systems, fans and fan systems including air 
  2.13  handlers and air-to-air heat exchangers, and heat recovery 
  2.14  ventilation systems, in either a commercial or residential 
  2.15  structure. 
  2.16     Subd. 8.  [LICENSED CONTRACTOR.] "Licensed contractor" 
  2.17  means a contractor holding a commercial or residential license 
  2.18  to perform work under section 16F.02.  
  2.19     Subd. 9.  [MUNICIPALITY.] "Municipality" means a 
  2.20  municipality as defined in section 16B.60, subdivision 3. 
  2.21     Subd. 10.  [QUALIFYING PERSON.] "Qualifying person" means 
  2.22  the individual who fulfills the examination and education 
  2.23  requirements for licensure on behalf of a licensed contractor. 
  2.24     Subd. 11.  [RESIDENTIAL HEATING AND VENTILATING 
  2.25  CONTRACTOR.] "Residential heating and ventilating contractor" 
  2.26  means a contractor that performs work on a residential heating 
  2.27  and ventilating system. 
  2.28     Subd. 12.  [RESIDENTIAL HEATING AND VENTILATING 
  2.29  SYSTEMS.] "Residential heating and ventilating systems" means a 
  2.30  heating and ventilating system in residential structures as 
  2.31  defined in the Minnesota Building Code. 
  2.32     Subd. 13.  [WORK.] "Work" means the erection, installation, 
  2.33  alteration, planning, repair, relocation, replacement, or design 
  2.34  of a heating and ventilating system or any of its related parts, 
  2.35  appliances, or equipment. 
  2.36     Sec. 2.  [16F.02] [LICENSING REQUIREMENTS.] 
  3.1      Subdivision 1.  [PERSONS REQUIRED TO BE LICENSED.] No 
  3.2   contractor may be in the business of performing work on a 
  3.3   commercial or residential heating and ventilating system without 
  3.4   holding the appropriate valid license. 
  3.5      Subd. 2.  [QUALIFYING PERSON.] (a) The examination and 
  3.6   education requirements for commercial heating and ventilating 
  3.7   contractor licensing and for residential heating and ventilating 
  3.8   contractor licensing must be fulfilled by a qualifying person 
  3.9   designated by the contractor.  The qualifying person must be a 
  3.10  sole proprietor, a person who is an employee of the contractor, 
  3.11  or a partner who actively works in the heating and ventilating 
  3.12  business of the contractor.  
  3.13     (b) No person may act as a qualifying person for more than 
  3.14  one licensed contractor unless: 
  3.15     (1) there is a common ownership of at least 25 percent of 
  3.16  each contractor for which the person acts as the qualifying 
  3.17  person; or 
  3.18     (2) one contractor is a subsidiary of another contractor 
  3.19  for which the same person acts as a qualifying person.  The term 
  3.20  "subsidiary" means a corporation of which at least 25 percent is 
  3.21  owned by the parent corporation. 
  3.22     (c) A licensed contractor must notify the commissioner 
  3.23  within one month after the departure or disqualification of the 
  3.24  contractor's qualifying person for any reason.  The contractor 
  3.25  has six months from the qualifying person's departure or 
  3.26  disqualification to obtain a new qualifying person.  Failure to 
  3.27  secure a new qualifying person within this time shall result in 
  3.28  automatic termination of the contractor's license. 
  3.29     Subd. 3.  [PERSONS WHO MAY PERFORM WORK.] Except as 
  3.30  described in subdivision 5, no person may perform work on 
  3.31  heating and ventilating systems unless the person is an employee 
  3.32  of a licensed contractor. 
  3.33     Subd. 4.  [RESPONSIBILITIES OF CONTRACTOR.] A licensed 
  3.34  contractor is responsible for compliance with all applicable 
  3.35  codes for all work performed by persons who are employed by the 
  3.36  contractor. 
  4.1      Subd. 5.  [EXEMPTIONS.] The license requirement does not 
  4.2   apply to: 
  4.3      (1) an employee of a licensed contractor performing work 
  4.4   for the contractor; 
  4.5      (2) a person, manufacturer, or retailer furnishing finished 
  4.6   products, materials, or articles of merchandise who does not 
  4.7   install or attach the items; 
  4.8      (3) an owner or owners of residential real estate who build 
  4.9   or improve residential real estate and who do the work 
  4.10  themselves; 
  4.11     (4) persons whose profession is otherwise subject to state 
  4.12  licensing when engaged in the activity which is the subject of 
  4.13  licensure, including but not limited to plumbers, electricians, 
  4.14  pipefitters engaged in high pressure piping, plumbers or 
  4.15  pipefitters engaged in installing or servicing burners in 
  4.16  heating or ventilating systems, and persons involved in fire 
  4.17  protection; or 
  4.18     (5) Habitat for Humanity, Builders Outreach Foundation, and 
  4.19  Heat's On, and their individual volunteers when engaged in 
  4.20  activities on their behalf. 
  4.21     Sec. 3.  [16F.05] [BOND; INSURANCE.] 
  4.22     Subdivision 1.  [BOND.] Licensed commercial heating and 
  4.23  ventilating contractors and licensed residential heating and 
  4.24  ventilating contractors must each post a license bond of at 
  4.25  least $25,000 with the commissioner, conditioned that the 
  4.26  contractor faithfully perform the duties and comply with all 
  4.27  laws, ordinances, and rules pertaining to the license or permit 
  4.28  applied for, and perform all contracts entered into.  The annual 
  4.29  bond must be continuous and maintained for so long as the 
  4.30  contractor remains licensed.  The aggregate liability of the 
  4.31  surety on the bond to any and all persons, regardless of the 
  4.32  number of claims made against the bond, may not exceed the 
  4.33  amount of the bond.  The bond may be canceled as to future 
  4.34  liability by the surety upon 30 days' written notice mailed to 
  4.35  the commissioner by regular mail. 
  4.36     Subd. 2.  [INSURANCE.] Licensed contractors must have 
  5.1   public liability insurance with limits of at least $100,000 per 
  5.2   occurrence, which must include at least $10,000 property damage 
  5.3   coverage.  The commissioner may increase the minimum amount of 
  5.4   insurance required for any class of licensed contractor if the 
  5.5   commissioner considers it to be in the public interest and 
  5.6   necessary to protect the interests of Minnesota consumers. 
  5.7      Sec. 4.  [16F.06] [HEATING AND VENTILATING ADVISORY 
  5.8   COUNCIL.] 
  5.9      Subdivision 1.  [APPOINTMENTS.] The commissioner shall 
  5.10  appoint seven persons to the heating and ventilating advisory 
  5.11  council.  At least four persons must represent heating and 
  5.12  ventilating contractors, two of whom represent contractors whose 
  5.13  residential heating and ventilating work represents at least 30 
  5.14  percent of their business and two of whom represent contractors 
  5.15  whose nonresidential heating and ventilating work represents 
  5.16  more than 70 percent of their business.  One member must be a 
  5.17  representative of the commissioner, one member must be a local 
  5.18  official, and one member must be a public member.  Of the seven 
  5.19  members, at least two must reside in greater Minnesota as 
  5.20  defined in section 116O.02, subdivision 5. 
  5.21     Subd. 2.  [MEMBERSHIP TERMS.] The membership terms, 
  5.22  compensation, removal, and filling of vacancies of the council 
  5.23  are as provided in section 15.059. 
  5.24     Subd. 3.  [DUTIES.] The council shall advise the 
  5.25  commissioner on matters related to this chapter. 
  5.26     Sec. 5.  [16F.07] [FEES.] 
  5.27     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
  5.28  contractors licensed under this chapter is $....... per year for 
  5.29  commercial heating and ventilating contractors and $....... per 
  5.30  year for residential heating and ventilating contractors.  The 
  5.31  commissioner may adjust the fees under section 16A.1285 to 
  5.32  recover the costs of administration and enforcement.  The fees 
  5.33  must be limited to the cost of license administration and 
  5.34  enforcement and must be deposited in the state treasury and 
  5.35  credited to the special revenue fund.  A fee of $25 shall be 
  5.36  charged for a duplicate license or an amended license reflecting 
  6.1   a change of business name, address, or qualification.  
  6.2      Subd. 2.  [LOCAL SURCHARGE.] A municipality may impose an 
  6.3   amount of not more than $5 on each building permit that requires 
  6.4   a licensed heating and ventilating contractor for the purpose of 
  6.5   license verification.  The municipality may verify a license by 
  6.6   facsimile machine. 
  6.7      Sec. 6.  [16F.08] [CONTINUING EDUCATION.] 
  6.8      Subdivision 1.  [STANDARDS.] The commissioner, in 
  6.9   consultation with the advisory council, shall adopt standards 
  6.10  for continuing education requirements and course approval for 
  6.11  commercial and residential licenses.  The standards must include 
  6.12  requirements for continuing education in the implementation of 
  6.13  energy codes applicable to commercial and residential buildings 
  6.14  and other building codes.  Except for course content, the 
  6.15  standards must be consistent with the standards established for 
  6.16  other professions licensed by the state.  The continuing 
  6.17  education may, at least in part, be the same for commercial and 
  6.18  residential licenses as determined by the commissioner. 
  6.19     Subd. 2.  [HOURS.] A qualifying person must provide proof 
  6.20  of completion of seven hours of continuing education per year. 
  6.21     Subd. 3.  [ACCESSIBILITY.] To the extent possible, the 
  6.22  commissioner shall ensure that continuing education courses are 
  6.23  offered throughout the state and are easily accessible to all 
  6.24  licensed contractors.  
  6.25     Sec. 7.  [16F.09] [NOTICE OF CHANGE.] 
  6.26     Written notice must be given to the commissioner by a 
  6.27  licensed contractor of any change in personal name, trade name, 
  6.28  qualifying person, address, or business location not later than 
  6.29  15 business days after the change.  The commissioner shall issue 
  6.30  an amended license, if required, for the unexpired period.  
  6.31     Sec. 8.  [16F.10] [APPLICATION AND EXAMINATION.] 
  6.32     Subdivision 1.  [FORM.] An applicant for a license under 
  6.33  this chapter must submit an application to the commissioner, 
  6.34  under oath, on a form prescribed by the commissioner.  Within 30 
  6.35  business days of receiving all required information, the 
  6.36  commissioner must act on the license request.  If one of the 
  7.1   categories in the application does not apply, the applicant must 
  7.2   state the reason.  The commissioner may refuse to issue a 
  7.3   license if the application is not complete or contains 
  7.4   unsatisfactory information. 
  7.5      Subd. 2.  [CONTENTS.] The application must include the 
  7.6   following information regarding the applicant: 
  7.7      (1) Minnesota workers' compensation insurance certificate; 
  7.8      (2) employment insurance account number; 
  7.9      (3) certificate of liability insurance; 
  7.10     (4) the name and address of the applicant; 
  7.11     (5) the name and address of the applicant's qualifying 
  7.12  person; 
  7.13     (6) the name and address of the sole proprietor if the 
  7.14  applicant is a sole proprietorship; 
  7.15     (7) the names and addresses of all the partners if the 
  7.16  applicant is a partnership; 
  7.17     (8) the names and addresses of the governor and manager if 
  7.18  the applicant is a limited liability company; 
  7.19     (9) the names and addresses of each corporate officer, 
  7.20  director, and shareholder holding more than ten percent of the 
  7.21  outstanding voting stock if the applicant is a corporation; 
  7.22     (10) whether the applicant, an employee, or a qualifying 
  7.23  person has ever been licensed as a contractor in this or any 
  7.24  other state, has had a professional or vocational license 
  7.25  refused, suspended, or revoked, or has been the subject of any 
  7.26  administrative action; 
  7.27     (11) whether the applicant, the qualifying person, a 
  7.28  corporate or partnership director, a limited liability company 
  7.29  governor, an officer, a limited or general partner, a manager, a 
  7.30  shareholder holding more than ten percent of the shares of the 
  7.31  corporation that have been issued, or a member holding more than 
  7.32  ten percent of the voting power of the membership interests that 
  7.33  have been issued, has been convicted of a crime that either 
  7.34  related directly to the business for which the license is sought 
  7.35  or involved fraud, misrepresentation, or misuse of funds; has 
  7.36  suffered a judgment in a civil action involving fraud, 
  8.1   misrepresentation, negligence, breach of contract, or conversion 
  8.2   within the ten years prior to the submission of the application; 
  8.3   or has had a government-issued contractor's license or 
  8.4   government-issued permit suspended or revoked as a result of an 
  8.5   action brought by a federal, state, or local governmental unit 
  8.6   or agency in this or any other state; 
  8.7      (12) the applicant's and qualifying person's business 
  8.8   history for the past five years and whether the applicant, an 
  8.9   employee, or the qualifying person has ever filed for bankruptcy 
  8.10  or protection from creditors or has any unsatisfied judgments 
  8.11  against the applicant, an employee, or the qualifying person; 
  8.12     (13) where the applicant is a firm, partnership, sole 
  8.13  proprietorship, limited liability company, corporation, or 
  8.14  association, whether there has been a sale or transfer of the 
  8.15  business or other change in ownership, control, or name in the 
  8.16  last five years and the details thereof; and the names and 
  8.17  addresses of all prior, predecessor, subsidiary, affiliated, 
  8.18  parent, or related entities, and whether each such entity, or an 
  8.19  owner, an officer, a director, or a shareholder holding more 
  8.20  than ten percent of the voting stock has ever taken or been 
  8.21  subject to an action that is subject to clause (11) or (12) or 
  8.22  this clause in the last ten years; and 
  8.23     (14) whether the qualifying person is the qualifying person 
  8.24  for more than one licensed contractor, and if so for whom.  
  8.25     The commissioner may require further information as the 
  8.26  commissioner deems appropriate to administer the provisions and 
  8.27  further the purposes of this chapter. 
  8.28     Subd. 3.  [EXAMINATION.] Each qualifying person must 
  8.29  satisfactorily complete a written examination for each type of 
  8.30  license requested.  The commissioner may establish the 
  8.31  examination qualifications, including related experience and 
  8.32  education, the examination procedure, and the examination.  The 
  8.33  examination must include, at a minimum, the following areas: 
  8.34     (1) appropriate knowledge of commonly used technical terms 
  8.35  and knowledge of reference materials and code books to be used 
  8.36  for technical information; and 
  9.1      (2) understanding of the general principles of business 
  9.2   management and other pertinent state laws.  
  9.3      Each examination must be designed for the specified type of 
  9.4   license requested.  The council shall advise the commissioner on 
  9.5   the grading, monitoring, and updating of examinations. 
  9.6      No examination may be required for renewal of a license.  
  9.7   However, in order for a renewal license to be issued, the 
  9.8   qualifying person must provide evidence that the continuing 
  9.9   education requirements of section 16F.08 have been complied with.
  9.10     Subd. 4.  [COMMERCIAL AND RESIDENTIAL HEATING AND 
  9.11  VENTILATING CONTRACTORS.] For commercial heating and ventilating 
  9.12  contractors, the examination requirement of subdivision 3 shall 
  9.13  be satisfied by successful completion of a separate written 
  9.14  examination designed especially for commercial heating and 
  9.15  ventilating contractors.  For residential heating and 
  9.16  ventilating contractors, the examination requirement of 
  9.17  subdivision 3 shall be satisfied by successful completion of a 
  9.18  separate written examination for residential heating and 
  9.19  ventilating contractors.  These examinations must be designed by 
  9.20  the commissioner in conjunction with the state building code 
  9.21  division.  The commissioner and the state building code division 
  9.22  shall seek advice on the grading, monitoring, and updating of 
  9.23  the examinations and continuing education standards and 
  9.24  requirements from the Sheet Metal, Air Conditioning and Roofing 
  9.25  Contractors' Association of Minnesota, the Minnesota Plumbing, 
  9.26  Heating, and Cooling Contractors' Association, and a 
  9.27  representative of an investor-owned natural gas utility with 
  9.28  experience working on heating and ventilating systems. 
  9.29     Subd. 5.  [ELIGIBILITY.] Any individual may take the 
  9.30  license examination.  After satisfactorily completing the 
  9.31  examination, an individual may be designated as the qualifying 
  9.32  person for a licensed contractor at any time if the individual 
  9.33  has also fulfilled the continuing education requirements in 
  9.34  section 16F.08 in the manner required for the qualifying person. 
  9.35     Sec. 9.  [16F.11] [LOCAL LICENSES.] 
  9.36     Except as provided in section 16F.16, a municipality may 
 10.1   not require a contractor licensed under this chapter to also be 
 10.2   licensed under any ordinance, law, rule, or regulation of the 
 10.3   municipality.  This section does not prohibit charges for 
 10.4   building permits or other charges not directly related to 
 10.5   licensure. 
 10.6      Sec. 10.  [16F.12] [DENIAL, SUSPENSION, OR REVOCATION OF 
 10.7   LICENSES.] 
 10.8      Subdivision 1.  [CAUSE.] The commissioner may by order 
 10.9   deny, suspend, or revoke any license or may censure a licensed 
 10.10  contractor, and may impose a civil penalty of not more than 
 10.11  $2,000 per violation, if the commissioner finds that the order 
 10.12  is in the public interest, and that the applicant, licensed 
 10.13  contractor, or affiliate of an applicant or licensed contractor, 
 10.14  or other agent, owner, partner, director, governor, shareholder, 
 10.15  member, officer, qualifying person, or managing employee of the 
 10.16  applicant or licensed contractor or any person occupying a 
 10.17  similar status or performing similar functions: 
 10.18     (1) has filed an application for a license which is 
 10.19  incomplete in any material respect or contains any statement 
 10.20  which, in light of the circumstances under which it is made, is 
 10.21  false or misleading with respect to any material fact; 
 10.22     (2) has engaged in a fraudulent, deceptive, or dishonest 
 10.23  practice; 
 10.24     (3) is permanently or temporarily enjoined by any court of 
 10.25  competent jurisdiction from engaging in or continuing any 
 10.26  conduct or practice involving any aspect of the business; 
 10.27     (4) has failed to reasonably supervise employees, agents, 
 10.28  subcontractors, or salespersons, or has performed negligently or 
 10.29  in breach of contract, so as to cause injury or harm to the 
 10.30  public; 
 10.31     (5) has violated or failed to comply with any provision of 
 10.32  this chapter or any rule or order under this chapter; 
 10.33     (6) has been shown to be incompetent, untrustworthy, or 
 10.34  financially irresponsible; 
 10.35     (7) has been convicted of a violation of the state building 
 10.36  code; 
 11.1      (8) has failed to use the proceeds of any payment made to 
 11.2   the licensed contractor for the construction of, or any 
 11.3   improvement to, real estate for the payment of labor, skill, 
 11.4   material, and machinery contributed to the construction or 
 11.5   improvement, knowing that the cost of any labor performed, or 
 11.6   skill, material, or machinery furnished for the improvement 
 11.7   remains unpaid; 
 11.8      (9) has not furnished to the person making payment either a 
 11.9   valid lien waiver as to any unpaid labor performed, or skill, 
 11.10  material, or machinery furnished for an improvement, or a 
 11.11  payment bond in the basic amount of the contract price for the 
 11.12  improvement conditioned for the prompt payment to any person or 
 11.13  persons entitled to payment; 
 11.14     (10) has had a judgment entered for failure to make 
 11.15  payments to employees or subcontractors, and all appeals of the 
 11.16  judgment have been exhausted or the period for appeal has 
 11.17  expired; 
 11.18     (11) if unlicensed, has obtained a building permit by the 
 11.19  fraudulent use of a fictitious license number or the license 
 11.20  number of another or, if licensed, has knowingly allowed an 
 11.21  unlicensed person to use the licensed contractor's license 
 11.22  number for the purpose of fraudulently obtaining a building 
 11.23  permit; or 
 11.24     (12) has made use of forged mechanics' lien waivers under 
 11.25  chapter 514.  
 11.26     Subd. 2.  [ADMINISTRATIVE ACTION.] The commissioner may use 
 11.27  the enforcement powers granted to the commissioner of commerce 
 11.28  under section 45.027 in any action taken by the commissioner in 
 11.29  connection with the administration of this chapter. 
 11.30     Nothing in this section prevents the commissioner from 
 11.31  denying, suspending, revoking, or restricting a license, or from 
 11.32  censuring a licensed contractor based on acts or omissions not 
 11.33  specifically enumerated in subdivision 1. 
 11.34     Sec. 11.  [16F.13] [PENALTIES.] 
 11.35     Subdivision 1.  [MISDEMEANOR.] A person required to be 
 11.36  licensed under this chapter who performs unlicensed work is 
 12.1   guilty of a misdemeanor. 
 12.2      Subd. 2.  [LIEN RIGHTS.] An unlicensed contractor who 
 12.3   knowingly violates this chapter has no right to claim a lien 
 12.4   under section 514.01 and the lien is void.  Nothing in this 
 12.5   section affects the lien rights of material suppliers and 
 12.6   licensed contractors to the extent provided by law. 
 12.7      Subd. 3.  [COMMISSIONER ACTION.] The commissioner may bring 
 12.8   actions, including cease and desist actions, against any person 
 12.9   licensed or required to be licensed under this chapter to 
 12.10  protect the public health, safety, and welfare. 
 12.11     Sec. 12.  [16F.14] [BUILDING PERMIT CONDITIONED ON 
 12.12  LICENSURE.] 
 12.13     (a) A municipality shall not issue a building permit to an 
 12.14  unlicensed contractor who is required to be licensed under this 
 12.15  chapter.  The political subdivision shall report the contractor 
 12.16  applying for a building permit to the commissioner, who may 
 12.17  bring an action against the contractor. 
 12.18     (b) A municipality may not place a surcharge on a permit 
 12.19  fee. 
 12.20     Sec. 13.  [16F.15] [LICENSE RENEWAL.] 
 12.21     Subdivision 1.  [RENEWAL.] Licensed contractors whose 
 12.22  applications have been properly and timely filed and who have 
 12.23  not received notice of denial of renewal are considered to have 
 12.24  been approved for renewal and may continue to transact business 
 12.25  whether or not the renewed license has been received.  
 12.26  Applications are timely if received or postmarked by March 1 of 
 12.27  the renewal year.  Applications must be made on a form approved 
 12.28  by the commissioner. 
 12.29     Subd. 2.  [ANNUAL RENEWAL.] All licenses are good for the 
 12.30  year issued and the following year, and then must be renewed 
 12.31  biennially. 
 12.32     Subd. 3.  [FAILURE TO APPLY.] A person who has failed to 
 12.33  make a timely application for renewal of a license by March 31 
 12.34  of the renewal year is unlicensed until the license has been 
 12.35  issued by the commissioner and is received by the applicant. 
 12.36     Subd. 4.  [REEXAMINATION NOT REQUIRED.] An examination is 
 13.1   not required for the renewal of a license, except that a 
 13.2   licensed contractor who has failed to renew a license for two 
 13.3   years must retake the examination. 
 13.4      Sec. 14.  [16F.16] [EXCEPTION.] 
 13.5      (a) The license requirements of section 16F.02 do not apply 
 13.6   to:  (1) a contractor with a heating and ventilating license 
 13.7   issued by a municipality whose licensing requirements exceed the 
 13.8   requirements in this chapter, as determined by the commissioner, 
 13.9   while performing work on heating and ventilating systems in that 
 13.10  municipality where the contractor holds the appropriate 
 13.11  municipal license or licenses; or (2) a contractor licensed by 
 13.12  the city of St. Paul or the city of Minneapolis when the 
 13.13  contractor is performing heating and ventilating work within the 
 13.14  legal boundaries of one of those cities and holds the 
 13.15  appropriate city license or licenses. 
 13.16     (b) The commissioner may contract with the city of 
 13.17  Minneapolis and with the city of St. Paul to administer the 
 13.18  licensing program under this chapter. 
 13.19     Sec. 15.  [16F.17] [LICENSE NUMBER; ADVERTISING.] 
 13.20     Subdivision 1.  [LICENSE NUMBER MUST BE DISPLAYED.] The 
 13.21  license number of a licensed contractor must be placed on all 
 13.22  building permits and building permit applications made to or 
 13.23  issued by the state or a municipality.  In jurisdictions that 
 13.24  have not adopted the state building code, the license number 
 13.25  must be placed on the site plan review or zoning permit.  The 
 13.26  license number must be on all contracts to perform work for 
 13.27  which a license is required.  The contractor's name and license 
 13.28  number must be displayed on all of the contractor's vehicles. 
 13.29     Subd. 2.  [ADVERTISING.] The license number of a licensed 
 13.30  contractor must appear in any display advertising by that 
 13.31  licensed contractor. 
 13.32     Subd. 3.  [BIDS AND CONTRACTS.] Bids and contracts entered 
 13.33  into by a licensed contractor must state that the person is 
 13.34  licensed and must state the license number or numbers. 
 13.35     Subd. 4.  [PUBLIC EDUCATION.] The heating and ventilating 
 13.36  advisory council may develop materials and programs to educate 
 14.1   the public concerning licensing requirements and methods for 
 14.2   reporting unlicensed activity. 
 14.3      Sec. 16.  [16F.18] [CONFLICT OF LAWS.] 
 14.4      This chapter is not intended to conflict with and does not 
 14.5   supersede sections 326.37 to 326.45; 326.46 to 326.521; or 
 14.6   183.375 to 183.62.  This chapter supersedes sections 326.02 to 
 14.7   326.15 to the extent those sections conflict with this chapter. 
 14.8      Sec. 17.  [16F.19] [RULES.] 
 14.9      The commissioner may adopt rules to: 
 14.10     (1) set a fee under section 16F.07 for processing a 
 14.11  commercial heating and ventilating license application and a 
 14.12  residential heating and ventilating license; 
 14.13     (2) establish criteria for the qualifications of commercial 
 14.14  and residential heating and ventilating contractors; and 
 14.15     (3) establish procedures for appeals of decisions of the 
 14.16  commissioner under chapter 14 and procedures allowing the 
 14.17  commissioner, before issuing a decision, to seek advice from the 
 14.18  heating and ventilating advisory council and other persons 
 14.19  knowledgeable in the installation, construction, and repair of 
 14.20  commercial or residential heating and ventilating systems. 
 14.21     Sec. 18.  [16F.20] [INITIAL TEMPORARY LICENSES AND FEES.] 
 14.22     Commercial and residential heating and ventilating 
 14.23  contractors must obtain temporary licenses by July 1, 2000, and 
 14.24  permanent licenses by July 1, 2002. 
 14.25     Sec. 19.  Minnesota Statutes 1998, section 116J.70, 
 14.26  subdivision 2a, is amended to read: 
 14.27     Subd. 2a.  [LICENSE; EXCEPTIONS.] "Business license" or 
 14.28  "license" does not include the following:  
 14.29     (1) any occupational license or registration issued by a 
 14.30  licensing board listed in section 214.01 or any occupational 
 14.31  registration issued by the commissioner of health pursuant to 
 14.32  section 214.13; 
 14.33     (2) any license issued by a county, home rule charter city, 
 14.34  statutory city, township, or other political subdivision; 
 14.35     (3) any license required to practice the following 
 14.36  occupation regulated by the following sections:  
 15.1      (i) abstracters regulated pursuant to chapter 386; 
 15.2      (ii) accountants regulated pursuant to chapter 326; 
 15.3      (iii) adjusters regulated pursuant to chapter 72B; 
 15.4      (iv) architects regulated pursuant to chapter 326; 
 15.5      (v) assessors regulated pursuant to chapter 270; 
 15.6      (vi) athletic trainers regulated pursuant to chapter 148; 
 15.7      (vii) attorneys regulated pursuant to chapter 481; 
 15.8      (viii) auctioneers regulated pursuant to chapter 330; 
 15.9      (ix) barbers regulated pursuant to chapter 154; 
 15.10     (x) beauticians regulated pursuant to chapter 155A; 
 15.11     (xi) boiler operators regulated pursuant to chapter 183; 
 15.12     (xii) chiropractors regulated pursuant to chapter 148; 
 15.13     (xiii) collection agencies regulated pursuant to chapter 
 15.14  332; 
 15.15     (xiv) cosmetologists regulated pursuant to chapter 155A; 
 15.16     (xv) dentists, registered dental assistants, and dental 
 15.17  hygienists regulated pursuant to chapter 150A; 
 15.18     (xvi) detectives regulated pursuant to chapter 326; 
 15.19     (xvii) electricians regulated pursuant to chapter 326; 
 15.20     (xviii) mortuary science practitioners regulated pursuant 
 15.21  to chapter 149A; 
 15.22     (xix) engineers regulated pursuant to chapter 326; 
 15.23     (xx) insurance brokers and salespersons regulated pursuant 
 15.24  to chapter 60A; 
 15.25     (xxi) certified interior designers regulated pursuant to 
 15.26  chapter 326; 
 15.27     (xxii) midwives regulated pursuant to chapter 148; 
 15.28     (xxiii) nursing home administrators regulated pursuant to 
 15.29  chapter 144A; 
 15.30     (xxiv) optometrists regulated pursuant to chapter 148; 
 15.31     (xxv) osteopathic physicians regulated pursuant to chapter 
 15.32  147; 
 15.33     (xxvi) pharmacists regulated pursuant to chapter 151; 
 15.34     (xxvii) physical therapists regulated pursuant to chapter 
 15.35  148; 
 15.36     (xxviii) physician assistants regulated pursuant to chapter 
 16.1   147A; 
 16.2      (xxix) physicians and surgeons regulated pursuant to 
 16.3   chapter 147; 
 16.4      (xxx) plumbers regulated pursuant to chapter 326; 
 16.5      (xxxi) podiatrists regulated pursuant to chapter 153; 
 16.6      (xxxii) practical nurses regulated pursuant to chapter 148; 
 16.7      (xxxiii) professional fund raisers regulated pursuant to 
 16.8   chapter 309; 
 16.9      (xxxiv) psychologists regulated pursuant to chapter 148; 
 16.10     (xxxv) real estate brokers, salespersons, and others 
 16.11  regulated pursuant to chapters 82 and 83; 
 16.12     (xxxvi) registered nurses regulated pursuant to chapter 
 16.13  148; 
 16.14     (xxxvii) securities brokers, dealers, agents, and 
 16.15  investment advisers regulated pursuant to chapter 80A; 
 16.16     (xxxviii) steamfitters regulated pursuant to chapter 326; 
 16.17     (xxxix) teachers and supervisory and support personnel 
 16.18  regulated pursuant to chapter 125; 
 16.19     (xl) veterinarians regulated pursuant to chapter 156; 
 16.20     (xli) water conditioning contractors and installers 
 16.21  regulated pursuant to chapter 326; 
 16.22     (xlii) water well contractors regulated pursuant to chapter 
 16.23  103I; 
 16.24     (xliii) water and waste treatment operators regulated 
 16.25  pursuant to chapter 115; 
 16.26     (xliv) motor carriers regulated pursuant to chapter 221; 
 16.27     (xlv) professional corporations regulated pursuant to 
 16.28  chapter 319A or professional firms regulated under chapter 319B; 
 16.29     (xlvi) real estate appraisers regulated pursuant to chapter 
 16.30  82B; 
 16.31     (xlvii) residential building contractors, residential 
 16.32  remodelers, residential roofers, manufactured home installers, 
 16.33  and specialty contractors regulated pursuant to chapter 326; 
 16.34     (xlviii) commercial and residential heating and ventilating 
 16.35  contractors regulated pursuant to chapter 16F; 
 16.36     (4) any driver's license required pursuant to chapter 171; 
 17.1      (5) any aircraft license required pursuant to chapter 360; 
 17.2      (6) any watercraft license required pursuant to chapter 
 17.3   86B; 
 17.4      (7) any license, permit, registration, certification, or 
 17.5   other approval pertaining to a regulatory or management program 
 17.6   related to the protection, conservation, or use of or 
 17.7   interference with the resources of land, air, or water, which is 
 17.8   required to be obtained from a state agency or instrumentality; 
 17.9   and 
 17.10     (8) any pollution control rule or standard established by 
 17.11  the pollution control agency or any health rule or standard 
 17.12  established by the commissioner of health or any licensing rule 
 17.13  or standard established by the commissioner of human services.  
 17.14     Sec. 20.  [APPROPRIATION.] 
 17.15     $....... is appropriated from the general fund to the 
 17.16  commissioner of administration to administer sections 1 to 17, 
 17.17  to be available for the biennium. 
 17.18     Sec. 21.  [EFFECTIVE DATE.] 
 17.19     Sections 1 to 20 are effective July 1, 1999.