Bill Text: MN HF2482 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Construction loan changes made, and general liability loan provisions modified.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-23 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF2482 Detail]
Download: Minnesota-2011-HF2482-Introduced.html
1.2relating to labor and industry; making changes to construction loans; commercial
1.3general liability loans;amending Minnesota Statutes 2010, sections 47.20, by
1.4adding a subdivision; 326B.86, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 47.20, is amended by adding a subdivision
1.7to read:
1.8 Subd. 8a. Permitted inquiry in loan applications. If the purpose of a conventional
1.9loan or loan made under the authority granted in subdivision 1, clause (3) or (4), is to
1.10enable a borrower to purchase a one to four family dwelling for the borrower's primary
1.11residence, or to finance a home improvement as defined in section 327A.01, subdivision 9,
1.12a lender may require the loan applicant to disclose whether:
1.13(1) the dwelling will be or was newly constructed by a person or entity licensed
1.14under sections 326B.801 to 326B.885; or
1.15(2) the home improvement will be performed by a person or entity licensed under
1.16sections 326B.801 to 326B.885.
1.17If the construction or home improvement was not performed or planned to be performed by
1.18a licensed person or entity, the lender may refuse to make the requested loan. The license
1.19number may be obtained from the Department of Labor and Industry contractor Web site.
1.20 Sec. 2. Minnesota Statutes 2010, section 326B.86, subdivision 2, is amended to read:
1.21 Subd. 2. Insurance. Each licensee shall have and maintain in effect commercial
1.22general liability insurance, which includes premises and operations insurance and products
1.23and completed operations insurance, with limits of at least $100,000 per occurrence,
2.1$300,000 aggregate limit for bodily injury, and property damage insurance with limits of
2.2at least $25,000 or a policy with a single limit for bodily injury and property damage of
2.3$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written
2.4by an insurer licensed to do business in this state. To complete the sale of a policy for
2.5insurance for each licensee, the insurer must obtain a valid license available from the
2.6Department of Labor and Industry contractor Web site. Each licensee shall maintain
2.7on file with the commissioner a certificate evidencing the insurance. In the event of a
2.8policy cancellation, the insurer shall send written notice to the commissioner at the same
2.9time that a cancellation request is received from or a notice is sent to the insured. The
2.10commissioner may increase the minimum amount of insurance required for any licensee
2.11or class of licensees if the commissioner considers it to be in the public interest and
2.12necessary to protect the interests of Minnesota consumers.
1.3general liability loans;amending Minnesota Statutes 2010, sections 47.20, by
1.4adding a subdivision; 326B.86, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 47.20, is amended by adding a subdivision
1.7to read:
1.8 Subd. 8a. Permitted inquiry in loan applications. If the purpose of a conventional
1.9loan or loan made under the authority granted in subdivision 1, clause (3) or (4), is to
1.10enable a borrower to purchase a one to four family dwelling for the borrower's primary
1.11residence, or to finance a home improvement as defined in section 327A.01, subdivision 9,
1.12a lender may require the loan applicant to disclose whether:
1.13(1) the dwelling will be or was newly constructed by a person or entity licensed
1.14under sections 326B.801 to 326B.885; or
1.15(2) the home improvement will be performed by a person or entity licensed under
1.16sections 326B.801 to 326B.885.
1.17If the construction or home improvement was not performed or planned to be performed by
1.18a licensed person or entity, the lender may refuse to make the requested loan. The license
1.19number may be obtained from the Department of Labor and Industry contractor Web site.
1.20 Sec. 2. Minnesota Statutes 2010, section 326B.86, subdivision 2, is amended to read:
1.21 Subd. 2. Insurance. Each licensee shall have and maintain in effect commercial
1.22general liability insurance, which includes premises and operations insurance and products
1.23and completed operations insurance, with limits of at least $100,000 per occurrence,
2.1$300,000 aggregate limit for bodily injury, and property damage insurance with limits of
2.2at least $25,000 or a policy with a single limit for bodily injury and property damage of
2.3$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written
2.4by an insurer licensed to do business in this state. To complete the sale of a policy for
2.5insurance for each licensee, the insurer must obtain a valid license available from the
2.6Department of Labor and Industry contractor Web site. Each licensee shall maintain
2.7on file with the commissioner a certificate evidencing the insurance. In the event of a
2.8policy cancellation, the insurer shall send written notice to the commissioner at the same
2.9time that a cancellation request is received from or a notice is sent to the insured. The
2.10commissioner may increase the minimum amount of insurance required for any licensee
2.11or class of licensees if the commissioner considers it to be in the public interest and
2.12necessary to protect the interests of Minnesota consumers.
