STATE OF MINNESOTA DEPARTMENT OF LABOR AND INDUSTRY 443 Lafayette Road North St. Paul, Minnesota (651) or DIAL-DLI

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1 STATE OF MINNESOTA DEPARTMENT OF LABOR AND INDUSTRY 443 Lafayette Road North St. Paul, Minnesota (651) or DIAL-DLI MINNESOTA RESIDENTIAL BUILDING CONTRACTOR AND RESIDENTIAL REMODELER LICENSING REQUIREMENTS Minn. Stat General Licensing Requirements All residential building contractors and residential remodelers who contract with an owner to construct or improve dwellings for habitation by one to four families (including detached garages) and perform two or more special skills must obtain a license or certificate of exemption. The licensing requirement also applies to any person acting as a spec home builder. The licensing program is administered by the Minnesota Department of Labor and Industry. The licensing program requires only companies to obtain a license (in the case of an individual proprietorship, the proprietorship is licensed), unless exempt under one of the provisions noted below. Each company, however, must designate one individual who will serve as a qualifying person regardless of whether it is an individual proprietorship, partnership or corporation. The qualifying person is the individual who must take the required examination and fulfill the continuing education requirements. In the case of a sole proprietorship, the qualifying person must be the proprietor (owner) or a managing employee. For a partnership, the qualifying person must be a general partner or managing employee. For a corporation, the qualifying person must be a chief executive officer or managing employee. If the qualifying person is a managing employee, that person must be an employee who is regularly employed by the licensee and is actively engaged in the business of residential contracting or residential remodeling on behalf of the licensee. Contractor or Remodeler License The only difference between a residential building contractor and residential remodeler is that a remodeler can only work on existing structures whereas a residential building contractor can build new homes and work on existing structures. Exemptions from Licensure The following are exempt from the licensing requirements: Employees of a licensed contractor or remodeler; Material suppliers who do not install or attach the items; Owners doing work on their own property (unless they are engaged in building on speculation); X-19

2 Architects or engineers doing work within the scope of their practice; Persons whose annual gross receipts from their residential contracting or remodeling activities are less than $15,000. Gross receipts are defined as the total amount derived from residential contracting or remodeling activities, regardless of where the activities are performed (including other states), and must not be reduced by cost of goods sold, expenses, losses, or any other amount; Note: Any person claiming this exemption must obtain a certificate of exemption from licensure from the Department of Labor and Industry by filing an affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts during the calendar year for which the exemption is requested. The exemption certificate must be renewed annually. Once the person exceeds $15,000, the certificate of exemption must be immediately surrendered and application for a license must be filed. School districts and technical colleges; Plumbers, electricians and mechanical contractors; Specialty contractors who provide only one special skill (except residential roofers). Any person who only engages in activities found within one of the eight categories listed on the following page is not required to be licensed at this time (except residential roofers). For more information regarding the specific licensing requirements for persons who only engage in residential roofing activities please contact the Minnesota Department of Labor and Industry. Licensed residential building contractors and remodelers can engage in all of the special skill categories noted on the following page including roofing without obtaining a separate roofer license. X-20

3 Special skill means one of the following 8 categories: 1. EXCAVATION -excavation -trenching -grading -site grading 2. MASONRY/CONCRETE -drain systems -poured walls -slabs and poured-in-place footings -masonry walls -masonry fireplaces -masonry veneer -water resistance and waterproofing 3. CARPENTRY -rough framing -finish carpentry -doors, windows, and skylights -porches and decks (excluding concrete footings) -wood foundations -drywall installation (excluding taping and finishing) 4. INTERIOR FINISHING -floor covering -wood floors -cabinet and counter top installation -insulation and vapor barriers -interior or exterior painting -ceramic, marble, and quarry tile -ornamental guardrail and installation of prefabricated stairs -wallpapering 5. EXTERIOR FINISHING -siding -soffit, fascia and trim -exterior plaster and stucco -painting -rain carrying systems, including gutters and down spouts 6. DRYWALL AND PLASTER -installation -taping -finishing -interior plaster -painting -wallpapering 7. ROOFING * -roof coverings -roof sheathing -roof weatherproofing and insulation -repair of roof support system, but not construction of new roof support system * Roofers are required to obtain a license. Please contact the Department for further information. 8. GENERAL INSTALLATION SPECIALTIES -garage doors and openers -pools, spas, and hot tubs -fireplaces and wood stoves -asphalt paving and seal coating -exterior plaster and stucco -ornamental guardrail and prefabricated stairs X-21

4 License Application Process You can obtain the required license application at the Minnesota Department of Labor and Industry which is located at 443 Lafayette Road North, St. Paul, Minnesota, 55155, telephone: (651) or DIAL-DLI. ( ) Application forms can also be downloaded from our Web site: The license period for residential building contractors and remodelers is April 1st through March 31st. All licenses expire on March 31st of each year whether the license is issued for all or a portion of the license period. In order to maintain an active license, all licenses must be renewed by March 31st of each year whether the license is issued for all or a portion of the license period. Applicants must answer all questions and provide all information required on the application form. Failure to answer any question or attach the required documents will result in the application being returned to the applicant. All applications must include the following: A license fee of $ plus the appropriate Contractor s Recovery Fund fee (see Contractor s Recovery Fund section for further details). License fees for licenses issued for a portion of the license period cannot be prorated. (As an example, the license fees are $ whether or not the license is obtained in April or in December); Proof that the qualifying person has passed the examination; Certificate of liability insurance with limits of at least $100,000 per occurrence which must include at least $10,000 property damage coverage. Note: The company name listed as the Insured on the Certificate of Insurance must be identical to the company name listed on your license application. The Certificate Holder section of the Certificate of Insurance must indicate: Minnesota Department of Labor and Industry, Residential Building Contractors, 443 Lafayette Road N., St. Paul, Minnesota ; Minnesota workers compensation insurance certificate or a written explanation of why the applicant is exempt from workers compensation requirements. Minnesota workers compensation insurance certificate is required for those who have employees who are not the spouse, parent or child of the owner. Applicants who have no employees and have no intention of hiring employees (other than spouse, parent or child) during the next year should attach a written explanation with the license application stating that they are exempt for this reason. If uncertain regarding the need for workers compensation insurance, contact the Department s Workers Comp Division at (651) or Note: The company name listed as the Insured on the Certificate of Insurance must be identical to the company name listed on your license application. The Certificate Holder must indicate: Minnesota Department of Labor and Industry, Residential Building Contractors, 443 Lafayette Road N., St. Paul, Minnesota Unemployment insurance or a written explanation of why the applicant is exempt from unemployment insurance requirements. If uncertain regarding the need for unemployment insurance, contact the Minnesota Department of Jobs and Training at (651) ; X-22

5 Information regarding the applicants organizational structure including names and addresses of all officers, directors, shareholders, partners or employees who exercise management or policy control in the company. License Renewal Process All licenses expire on March 31st of each year whether the license is issued for all or a portion of the license period. ( License period is April 1st through March 31st) In order to maintain an active license, all licenses must be renewed by March 31st of each year whether the license is issued for all or a portion of the license period. Licensees will be sent a renewal notice each year in approximately mid-february with instructions on how to renew the license. Examination and Continuing Education Requirements The company s qualifying person must show proof that they have passed the required examination when applying for a license. Information regarding the exam and testing locations can be obtained from the testing company, PearsonVue, at , or on their Web site at: You can also register for the exam on PearsonVue s Web site. The company s qualifying person will be required to show proof that 7 hours of approved continuing education has been completed within each license period in order to renew their license whether the license is issued for all or a portion of the license period. (As an example, the qualifying person must obtain 7 hours of approved continuing education within each license period whether the license was obtained in April or December). At least one hour of the required credits for the licensee s first license period must contain information on lead abatement rules and safe lead abatement procedures. At least one hour each license period must include information relating to the implementation of energy codes applicable to building and other building codes designed to conserve energy. Examination preparation courses do not qualify for continuing education credits. It should be noted that the statute does not allow carry forward in relation to complying with the continuing education requirements. Therefore, each licensee will be required to complete 7 hours of approved continuing education within each license period in order to renew its license. Approved continuing education courses will be available through technical colleges, trade associations, private schools and a number of other sources. A list of approved continuing education sponsors and courses is available from the Department of Labor and Industry and can be found on our Web site: X-23

6 Contractor s Recovery Fund New license applicants and licensees renewing their license must pay a fee into the Contractor s Recovery Fund in addition to the license or renewal fee. The Fund will be administered by the Department and replaces the bonding requirement. The fee to be paid into the Fund is based upon the licensee s gross annual receipts according to the following scale: $100 fee if gross receipts are under $1,000,000 $150 fee if gross receipts are $1,000,000 to $5,000,000 $200 fee if gross receipts are over $5,000,000 Note: Failure to pay the appropriate Contractors Recovery Fund fee may result in disciplinary action being initiated against the licensee or applicant and may include civil penalties. The Department of Labor and Industry may conduct random audits to verify that the appropriate Contractor s Fund Fee was paid by the applicant or licensee. The purpose of the Fund is to provide reimbursement to a consumer who has suffered a financial loss as a result of a licensed residential building contractor or residential remodeler who has engaged in fraudulent, deceptive or dishonest practices, converted funds or failed to perform. No more than $75,000 per licensee may be paid from the Fund. Individuals who seek payment from the Fund, (in excess of conciliation court limits), must receive a final judgment in court against the licensee. The individual is then required to seek all other avenues or options for recovery of their loss prior to petitioning the court to approve payment from the Fund. To obtain payment, the individual must file a verified application to the court for an order directing payment from the fund for the amount of actual and direct out-ofpocket loss in the transaction, excluding interest and attorney fees. Judgments obtained against a licensee that are within the conciliation court limits are paid on an accelerated basis if the licensee does not appeal the judgment. No more than $15,000 per licensee may be paid under the accelerated process. Once payment from the fund is made, the license is automatically suspended. No reinstatement of a license is authorized until the licensee has repaid in full, plus interest, twice the amount paid from the Fund on the licensee s account. In addition, the licensee must obtain a surety bond in the amount of at least $40,000 prior to reinstatement of a license. These penalties are serious and therefore it is extremely important that licensees do not ignore customer complaints or problems which could result in a judgment being obtained against the licensee. Assumed Name Filing Information Any individual, corporation, partnership or limited partnership who is doing business in the State of Minnesota under a name other than the full name, (first and last), of each person involved in the business, or the legal corporate or partnership name, must file an assumed name. Example: John Smith Construction would not be required to file if John Smith is the owner of the business. However, Smith s Construction would be required to file because it does not contain the full first and last name of the owner. Similarly, the legally incorporated company ABC Construction does not need to file an assumed name because that is their legal corporate name. If they do business under any name other than the legal corporate name, an assumed name X-24

7 filing would be required. The reason for filing an assumed name is not to protect the name against use by other persons, but to provide information to the consumer on the identity of the business owner. Applications for assumed name filings may be obtained from the Secretary of State, 60 Empire Drive, St. Paul, MN 55155, telephone (651) Instructions for filing an assumed name are provided on the application form. Notification to Department of Any Change The law requires that licensees notify the Department of Labor and Industry, in writing, of any change in control, ownership, officers or directors, business name, license name, qualifying person, address, telephone number, or any changes to liability and property damage insurance information within 15 business days of the change. Although there is no charge for filing a name or address change, any change in business structure (i.e. individual proprietorship to corporation) requires a new license application and fees, and will result in the assignment of a new license number. Advertising The law requires that the license number be on all business cards, contracts, vehicles, all notices and statements relating to the filing of mechanics liens, or pursuant to section and all other advertising. The law does not require a specific size print or location for the license number. Penalties for Violating the Licensing Law A person whose company is required to be licensed and who performs unlicensed work as a residential building contractor or remodeler is guilty of a misdemeanor. Unlicensed activity in violation of an Order of the Commissioner of Labor and Industry is a gross misdemeanor. In addition, an unlicensed person who knowingly violates the law has no right to claim a lien under section and the lien is void. Individuals engaging in unlicensed activity, misrepresentation or fraud are subject to administrative and civil penalties. City, County and Township Requirements The license number of a contractor or remodeler must be placed on all building permits and building permit applications made to or issued by the State or a political subdivision (such as a city or county). In jurisdictions that have not adopted the State Building Code, the license number must be placed on the site plan review or zoning permit. A political subdivision shall not issue a building permit or zoning permit to an unlicensed residential building contractor or residential remodeler who is required to be licensed. The X-25

8 political subdivision is required to report any such person applying for a building permit or zoning permit to the Department of Labor and Industry who may take an action against the unlicensed contractor or remodeler. A local government unit may charge for building permits and other costs not directly related to licensure. In addition, a local government unit may impose a surcharge in an amount no greater than $5 on each permit for the purpose of license verification. Cities and counties cannot require a contractor who has a state license to obtain a local license for work that is covered under the state licensing requirements. They can, however, require a local license for certificate of exemption holders and specialty contractors, and state licensed contractors performing work outside the scope of the state license (i.e. work on city owned property such as curb cut-ins or sidewalks, HVAC installation or maintenance, or commercial work). X-26

9 STATE OF MINNESOTA DEPARTMENT OF LABOR AND INDUSTRY 443 Lafayette Road N. St. Paul, Minnesota (651) or DIAL-DLI RESIDENTIAL ROOFER LICENSING REQUIREMENTS General Licensing Requirements State law requires anyone who contracts with homeowners to perform residential roofing (which includes roof coverings, roof sheathing, roof weatherproofing and insulation, and repair of roof systems, but not construction of new roof systems) to be licensed as a residential roofer, residential building contractor, or residential remodeler. Contractors who offer other work in addition to roofing must be licensed as a building contractor or remodeler. The licensing program is administered by the Minnesota Department of Labor and Industry. Residential roofers are subject to all of the requirements of the Residential Building Contractor and Remodeler Licensing Law except that the amendments create a separate Residential Roofer license, bond and examination requirement. The licensing program requires only companies to obtain a license (in the case of an individual proprietorship, the proprietorship is licensed). Each company, however, must designate one individual who will serve as a qualifying person regardless of whether it is an individual proprietorship, partnership or corporation. The qualifying person is the individual who must take the required examination and fulfill the continuing education requirements. In the case of a sole proprietorship, the qualifying person must be the proprietor (owner) or a managing employee. For a partnership, the qualifying person must be a general partner or managing employee. For a corporation, the qualifying person must be a chief executive officer or managing employee. If the qualifying person is a managing employee, that person must be an employee who is regularly employed by the licensee and is actively engaged in the business of residential contracting or residential remodeling on behalf of the licensee. Exemptions from Licensure The following are exempt from the licensing requirements: Employees of a licensed contractor, remodeler or roofer; Material suppliers who no not install or attach the items; Owners doing work on their own property; X-27

10 Persons whose annual gross receipts from their residential roofer activities are less than $15,000. Gross annual receipts are the total amount derived from roofing activities and must not be reduced by cost of goods sold, expenses, losses, or any other amount. NOTE: Any person claiming this exemption must obtain a certificate of exemption from residential roofer licensing from the Department of Labor and Industry by filing an affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts during the calendar year for which the exemption is requested. The exemption certificate must be renewed annually. Once the person exceeds $15,000, the certificate of exemption must be immediately surrendered and application for a license must be filed. License Application Process You can obtain the required license application at the Minnesota Department of Labor and Industry which is located at 443 Lafayette Road N., St. Paul, Minnesota, , telephone: (651) or DIAL-DLI. The license period for residential roofers is April 1st through March 31. All licenses expire on March 31 of each year whether the license is issued for all or a portion of the license period. In order to maintain an active license, all licenses must be renewed by March 31 of each year. Applicants must answer all questions and provide all the required information on the application. Failure to answer any question or attach the required documents will result in the application being returned to the applicant. All applications must include the following: A license fee of $ Note: License fees for licenses issued for a portion of the license period cannot be prorated. (As an example, the license fees are $ whether or not the license is obtained in April or in December); Proof that the qualifying person has passed the required examination; Certificate of liability insurance with limits of at least $100,000 per occurrence which must include at least $10,000 property damage coverage. Note: The company name listed as the Insured on the Certificate of Insurance must be identical to the company name listed on your license application. The Certificate Holder section of the Certificate of Insurance must indicate: State of Minnesota, Department of Labor and Industry, 443 Lafayette Road N., St. Paul, Minnesota ; Minnesota workers compensation insurance certificate or a written explanation of why the applicant is exempt from workers compensation requirements. A Minnesota workers compensation insurance certificate is required for those who have employees who are not the spouse, parent or child of the owner. Applicants who have no employees and have no intention of hiring employees (other than spouse, parent or child) during the next year should attach a written explanation with the license application stating that they are exempt for this reason. If uncertain regarding the need for workers compensation insurance contact the X-28

11 Workers Compensation Division at (651) or DIAL-DLI. Note: The company name listed as the Insured on the Certificate of Insurance must be identical to the company name listed on your license application. The Certificate Holder must indicate: State of Minnesota, Department of Labor and Industry, 443 Lafayette Road N., St. Paul, Minnesota ; Unemployment insurance or proof that the applicant is exempt from unemployment insurance requirements. If uncertain regarding the need for unemployment insurance contact the Minnesota Department of Jobs and Training at (651) ; A surety bond in the amount of $5,000; Information regarding the applicant s organizational structure including names and addresses of officers, directors, shareholders, partners or employees who exercise management or policy control in the company. License Renewal Process All licenses expire on March 31 of each year whether the license is issued for all or a portion of the license period. License period is April 1 through March 31. In order to maintain an active license, all licenses must be renewed by March 31 of each year whether the license is issued for all or a portion of the license period. Licensees will be sent a renewal notice each year in approximately mid-february with instructions on how to renew a license. The annual license renewal fee is $ Examination and Continuing Education Requirements The company s qualifying person will be required to show proof that they have passed the prelicensing examination at the time of application. A bulletin of Information providing further details regarding the examination is available at the testing company s Web site at: PearsonVue s telephone number is The company s qualifying person will be required to show proof that 7 hours of approved continuing education has been completed within each license period in order to renew their license whether the license is issued for all or a portion of the license period. (As an example, the qualifying person must obtain 7 hours of approved continuing education within each license period whether the license was obtained in April or December). At least one hour of the required credits for the licensee s first license period must contain information on lead abatement rules and safe lead abatement procedures. At least one hour each license period must include information relating to the implementation of energy codes applicable to building and other building codes designed to conserve energy. Examination preparation courses do not qualify for continuing education credits. It should be noted that the statute does not allow carry forward in relation to complying with the continuing education X-29

12 requirements. Therefore, each licensee will be required to complete 7 hours of approved continuing education within each license period in order to renew its license. Approved continuing education courses will be available through technical colleges, trade associations, private schools and a number of other sources. A list of approved continuing education sponsors is available from the Department of Commerce. Assumed Name Filing Information Any individual, corporation, partnership or limited partnership who is doing business in the State of Minnesota under a name other than the full name of each person involved in the business, or the legal corporate or partnership name, must file an assumed name. Example: John Smith Construction would not be required to file if John Smith is the owner of the business. However, Smith s Construction would be required to file because it does not contain the full first and last name of the owner. Similarly, the legally incorporated company ABC Construction does not need to file an assumed name because that is their legal corporate name. If they do business under any name other than the legal corporate name, an assumed name filing would be required. The reason for filing an assumed name is not to protect the name against use by other persons, but to provide information to the consumer on the identity of the business owner. Applications for assumed name filings may be obtained from the Secretary of State, 180 State Office Building, St. Paul, MN 55155, telephone (651) Return the completed and signed form to the Secretary of State along with a $25 filing fee. Notification to Department of Any Change The law requires that licensees notify the Department of Commerce, in writing, of any change in control, ownership, officers or directors, business name, license name, qualifying person, address, telephone number, or any changes to liability and property damage insurance information within 15 business days of the change. Advertising The law requires that the license number be on all business cards, contracts and all other advertising including but not limited to signs, vehicles, published display ads, flyers and brochures. The law does not require a specific size print or location for the license number. Penalties for Violating the Law A person who is required to be licensed who performs unlicensed work as a Residential Roofer is guilty of a misdemeanor. An unlicensed person who knowingly violates the law has no right to claim a lien under section and the lien is void. Individuals engaging in unlicensed activity, misrepresentation or fraud are subject to administrative and civil penalties. X-30

13 City, County and Township Requirements The license number of a Residential Roofer must be placed on all building permits and building permit applications made to or issued by the State or a political subdivision. In jurisdictions that have not adopted the State Building Code, the license number must be placed on the site plan review or zoning permit. A political subdivision may not issue a building permit or zoning permit to an unlicensed Residential Roofer who is required to be licensed, and must report any such person applying for a building or zoning permit to the Department who may initiate disciplinary action against the unlicensed Residential Roofer. A political subdivision may charge for building permits and other costs not directly related to licensure. In addition, political subdivisions may impose up to a $5.00 surcharge on each building permit for the purpose of license verification. X-31

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