264173 _�
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`� "{'X�'"�* � CITY OF sAINT PAITL Council / -� (
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�`� �-'� "� _ '_:� - O I GGZ/`�/`Ce Ordinance W 0. J5 7��
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Presented By
Referred To Committee: Date
Out of Committee By Date
An ordinance providing for the
licensing ;of building contractors;
establishing requirements and providing
penalties .
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
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(1) "Building contracting business" means the construction of a
new home , building or work done by a building contTO�ect loretheliance
with a guarantee of completion of a new building p � ' alteration ,
repair, replacement , remodeling, painting or redecorating, �
conversion, modernization, improvement or addition to any land or
building, or that portion thereof which is used or designed to be
used as a private residence or d�elling place , and shall include but
not be limited to the installation, construction, replaceools �rormhes
provement of driveways (conerete or blacktop) , swimming p , P ' �
garages , fallout shelters , centrai hea�ing or air conditioning systems , ;I
central vacuum cleaning systems, storm windows, awnings or fzre or
- burglar alarms and other improveme nts to structurecontractin��busi-
which is adjacent to a dwelling house. "Building g
ness" shall not include (a) the sale of goods or materials by a
seller who neither arranges to perform nor performs directly or
indirectly any work ar labor in connection with the installation
of or. application of the goods or' materiaZs , or (b) buildings owned
by or controlled by the state or any municipal subdivision thereof,
or (c ) work which is done by private parties not regularly engaged
in the building construction business without compensation.
COUNCILMEN Requested by Department of:
Yeas Nays
Christensen
Hozza In Favor
Levine
Rcedler Against BY
Sylvester ,
Tedesco
President Hunt
Form Approved by City Attorney
Adopted by Council: Date
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Certifi� P�ssed by Council Secretary BY �
,
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�or: Date Approved by Mayor for Submission to Council '�.�/ y�
By �
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(2) "Building contractor" means any p�rsan, other than a
bona fide employee of the owner, who owns or operates a buildYng
contracting� business or who undertakes or offers to undertake
or agrees to perform any new construction or improvement, wl3ether
or not such person is licensed or subject to the licensing re-
quirements of this chapter and whether or not such person is a
prime contractor or subcontractor with respect to the owner.
This shall not apply to any person who performs work without
compensation.
(3) "Building contract" means an oral or w�itten agreement
between a contractor and an owner for the per.formanee of a building
contract, and includes all labor, services, and ma.terials to be
furnished and performed thereunder.
(4) "Buil�ling contractor' s establishment" means any shop,
establishment, place ar premises where a building contractor's
business is carried on.
(5) "Licensee" means a person licensed to engage in the
building contracting pusiness under the provisions of this chapter.
{6) "Owne�" mean� any homeowner, tena.nt, or any other person
who orders, contracts for, or purchases the services of a building
contractor, or the person entitled to the perforcnance of the work
of a building contxactor pursuant to ,a. building con�.ract. :
(7) "Person"�tneatns`an-individu�i, f i�, par�.r�etship,
association, corporation, or other group acting as a unit, however
organized. ; .
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(8) "Director" means the director of the Office of Consumer
Af fairs. .
(9) "License committee" �ans the license committee for the
Saint Paul City Counci�l.
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Section 2. License Required.
(1) No person shall own, ma.intain, conduct, operate, engage
in the building contracting business or transact a building con-
tract after the provisi�ns of this ordinance become effective or
hold himself out a:s being able to do so after such date unless he
is licensed therefor pursuant to this chapter.
(2) A license issued pursuant to this section may not be
construed to authori�e the licensee to perform any particular
type of work or kind of business which is reserved to qualified
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licensees under separate provisions of state or local law;
nor shall any license or authority other than as is issued
or permitted pursuant to this section authorize a person to
engage in the building contracting business.
(3) Nothing in this chapter shall be construed to limit
or restrict the power of the City of Saint Paul to regulate the
quality, performa.nce, or character of the work of co�tractors
including a system of permits and inspections which are designed
to sec�a.re compliance with and aid in the enforcement of applicable
state and local building laws, or to enforce other laws necessary
for the protection of the public health and safety. Nothing
in this chapter limits the power of the �ity of Saint Paul to
adopt any system of permits requiring submission to and approval
by the city of plans and specifications for an installation prior
to the commencement of construction of the installation or of
inspection_ work done.
(4) Except when otherwise specifically exempted by the
provisions of this chapter, no person shall act in the capacity
of a building contractor unless authorized to do so by a license
isstted in accordance with the provisions of this chapter.
Section 3. Building Contractor' s License; l�equirements.
(1) Every application for a license shall be accompanied by
a bond, approved as to form by the city attorney, eacecuted by a
bonding or surety company authorized to do business in the State
of Minnesota, in the amount of 'I�aenty-Five Hundred Dollars ($2,500.00) ,
conditioned upon the assurance that during the term of such license
� the licensee will continue to comply with the provisions of this
chapter and all laws of the city and to assure that upon default
in the performance of any contract, the advance payments made
thereon, less the reasonable value of services actually rendered
to the date of such default, or the reasonable costs of completion
of the contract in the event of noncompletion thereof, will be
refunded to the purchaser, owner, or lessee with whom such contract
was ma.de. Both the homeowner and the ;city shal�' have a cause ot
action against' the bond for reirtn.bu�se�ent .�o� any dacna.ges suffered
as a result of noncompliance with the laws of the city.
(2) A buildi.ng cont�rae�o� shal-k, .prior to being allowed to
engage in business, furnish to the City of Saint Paul a copy of a
liability insuran�e policy c5r a �e�tif=3 cat� ; of insurance, namiv��
the city as a co-i�.sured under the terms of the policy. The
liability insurance policy shall provide bodily injury insurance,
includin death, in an amount not less than Twenty-Five Thousand
Dollars �$25,000.00) for all dama.ges arising out of bodily injury
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to, or death of, one person and, subject to the same limit for
each person in an amount of not less than Fifty Thousand DolTars
($50,000.00� on account of any one accident, and furthe� property
damage insurance in an amount not less than Five Thousand Dollars
($5,000.00) for all dama.ges to or destruction of property in any
one accident, and subject to that limit per accident, and workmen' s
compensation insurance. The applicant shall also furnish to the
c�ty, the employer social security account number, the unemployment
insurance account number, the state withholding tax account number
and the federal withhol'ding tax account number.
�(3) Any applicant for a license to engage in a building
contracting business under the provisions of this ordinance shall
first file with the Division of License and Permit Administratiqn
of the:� Department of Finance and Management Services a written
application for such license on a form to be provided by the
Division and such other information as is required.
(4) The applicant, prior ta .i$su�.nce of a li,cense by the
License Committee, shall register its ��te �witYi the Office of
Consumer Affairs and such other i:nformation as is deemed necessary
by the director. ; , � �
�� ection 4. L�iaense�; Display; Re�._ewals; Du�licate.
(1) All licenses shall be fo� a period of one year from the
date of is�uance and shall expire on the last day of the twelfth
month following issuance.
(2) No license sha11 be assignable or transferable except
as hereinafter provided. A license to conduct a building contracting
business issued to an individual may be assigned or transferred for
the rema.inder of the license period to a p�rtnership or corporation
if such individual is a member of such partnership or a stockholder
of such corporation owning not less than twenty-five (25) per cent
of the outstanding stock at the time of such assignment or transfer.
A license issu�d `�o a partnership ma.y be assigned or transferred
for the rema.inder . of the license period to any one member of such
partnership, provided he obtains the consent of all of the other
members of such partnership. The application for such transfer or
assignment must be accompanied by proof satisfactory to the License
Committee that the requirements herein provided have been complied
with. No assignment or transfer shall become effective unless and
until the endorsement of the transfer or assignment has been ma.de
on the face to the license by the License Committee and such license,
so endorsed, has been returned to the assignee or transferee. All
such endorsements shall be made upon payment of a fee of five dollars.
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(3) Each license :issued pursuant to this chapter' shall be
po,sted and kept posted in some conspicuous place in the building
contractor' s establishment if the licensee operates a regular
place of business.
(4) Any license which has not been suspended or revoked
may, upon the payment of the renewal fee prescribed by this �
chapter, be renewed for an additional period of one year from
its expiration, upon filing of an applicatin n for such renewal
on a form to be prescribed by the License Committee. Such
application� for renewal shall be f.iled at least 30 days prior
to the expiration date of the license. The Division of License
and Permi� Administration shall give written notice to the
licensee at least 60 days prior to expiration.
� (5) A duplicate license ma.y be issued for one lost, destroyed
or rnutilated upon appl.ication i�herefor on a form prescr�bed by the
License Commit�ee and the payment of the fee prescribed therefor
by this chapter. Each such duplicate license shall have the word
"duplicate" stamped across the face thereof and shall bear the
same number as the one it replaces.
r (6) A supplementary license may be issued for each additional
� place of business maintained by a licensee within the City of
Saint Paul upon application therefor on a form prescribed by the
License Co�mittee and the payment of the fee prescribed therefor
. by this chapter. Each such supplementary license shall have the
word "supplementary" starinped across the taee thereof and shall
bear the same number as the original. Any license i5sued €or a
particular place of business is limited to the specific location
as described in the application.
� (7) Prior �to issuanc�. or renewal of Frthe�license, the Office
of Consumer Affairs shall be required to review the application
and report ta�' �he ;I.�i���s'e� �omnn�,ttee•-3,t�`�reGOC�maendation, if any.
(8) The Building Department o€a,�the city,shall not issue a
building pert�:it,- to anyone� 'req�ir`ed to, i�e= licerts,ed under this
chapter who iFs not at', the tim�. .o£ ap��.ica.tion'for the permit ,
properly licensed.
Section 5. Fees.
(1) The fee for a license to conduct a building contracting
business shall be T�aenty Five Dollars ($25.00) and for each
renewal thereof the fee shall be Twenty Five Dollars ($25.00) . .
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(2) The fee for issuing each supplementary or duplicate
license Yor one lost , destroyed or mutilated shall be Five
Dollars (�5.00) .
(3) The fees hereinabove set forth shall be those for
licenses issued for the license period of one year.
(4) The Division of License and Permit Adminiatration of
the Department of Fin.ance and Management Services �hall refund
the fee paid by any applicant in the event the application for
a license is` denied, or the applicant for the license has pre-
deceased its issuance , or has been inducted into the military
service prior to its issuance. Such refunds should be paid p?.
after approval by the License Commi�tee . _- ---- �
(5) All fees collected shall be deposited in the general
revenue fund of the City of Saint Paul .
(6) No fee shall be required under this chapter for any
license applicant currently licex�aed or certified under other
state or local law when acting exelusively within the scope of
the craft or profession for which the license or certification
has been issued.
Section 6, powers and Duties �f the ,�,icense Committee .
To egrry out the provisions of this chapter, the License
Committee shall have the following powers and duties:
(1) To examine t$e qualifications and fitng�s �of applicara.ts
for license unde�r this chapter.
(2) To keep records of all licenses issued, suspendec� or
revoked.
Section 7. Refusal , sust�ension or Revocat,�on of License.
A license to conduct, operate , engage in and transact a building
contracting. business as a building contractor may be refused, sus-
pended or revoked, or renew.al refused, by the License Committee fo r
any one or more of the following causes :
(1) Fraud, misrepresentation or bribery in securing a license.
(2) The making of any false statement as to a material matter
in any application for a license .
(3) The business tr�nsactions of the contractor have been
marked by a practice 'o� fai�.u�^e to pe�rform its co�.tracts .
(4) Failure to d;i�a.pla�. tl�e license a�s .provided, in this chapter.
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(S) Violation of any provision of this chapter, or of any -
ruie or regulation or city law within the scope of regulating a
building contracting business for the protection of consumers.
(6) Violations by the licensee and/or persons acting under
the direction and control of the licensee of any federal or state
statute or: municipal ordinance arising out of and during the scope
of business �onducted by the licensee.
Section 8. Prohibited Acts.
'I'he fo].lowing acts are prohibited:
, (I) Abandonment or willful failure to perform and the failure
is not due to circumstances beyond the control of the licensee, any
building contract or project engaged in or undertaken by a building
contractor, or willful deviation from or disregard of plans Qr
specifications in any ma.terial respect without the consent of the
owner;
(2) 'Ma.king any substantial misrepresentation in the procure-
ment of a building contract, or making any fa1sQ pramise likely to
influence, pursuade or induce;
(3) Any fraud in the execution of or in the �iaterial alteration
of an� contract, mortgage, pramissory note or other document incident
to a build�.ng 'contracting transaction;
(4) Preparing or acceptin.g any mortga.ge, promissory note or
other evidence o� indebtedness upon the obligations -of a building
contract trans,�.ction with knowledge that it recites a greater
monetary obligation than the agreed consideration for the building
contracting wo�kt which constitut�s an abuse to the consumer;
(5) Directiy or indirectly publishing any advertisement
relating to i�ui:ldi�g contrac��:ng: business� which contains an
assertion, representation or- statemen�t of fact which is:<false,
- deceptive or misleading, provided that any advertisement which
is ��ubj:ect to �.nc�.� cqmplies with the then existing rules, regula-
tions or guides of the �'ederal �Trade Commission laws of the
State of Minnesota and the City of Saint Paul, shall not be deemed
false, deceptive or misleading; or by any meat�s of advertising or
purporting to offer the general public any building contractir�g work
with the intent not to accept contracts for the particular work or
the price which is advertised or offered to the .public;
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(6) Willful or deliberate disregard and violation of the
building, housing, sanit�,ry, health, and fire laws of this State
or the City of Sain't Paiul; ' . � '
(7) Willful °fai7.ux~�a to =noti�y th�e License Committee of any
change or control in IIwnersYiip, mar�g�ment `ar business name or
location;
(8) Conducting a bu�ilding contracting business in any name
other than the one in which the building contractor is licensed;
(9) Willful failure to comply with any order, demand or
requirement made by the License Committee pursuant to provisions
of this chapter; `
(10) As part of or in connection with the ind�cement to make
a building contract, no person shall promise or offer to pay credit
charges or allow to a buyer any compensation or reward for the
procurement of a building contract with others ;
(ii) No building contractor shall offer to pay a loan as an
inducement to enter into a building contract ;
(12) No acts , agreements or statements of a buper under a
building contract shal� constitute a waiver of any pro�isions of
this chapter ii'itended for the benefit or protection o� the buyer;
, (13) Displa.y of a false or forged license .
Section 9. Exceptions .
(1) No license under this chapter shall be required of any
person when acting in the particula r capacity or particular type of
transaction set forth in this section:
(a) An individual who performs labor or services for a
building contractor for wages or salary.
(b) Any retail clerk, clerical , administrative or other
employee . of a licensed building contractor as to a transaction
on the premises of the contractor.
(c) This chapter shall not apply to a building contract
otherwise within the purview of this local ,law which is made
prior to the effective date of the respective provisions of
this chapter governing such contracts .
(2) No license fee shall be required pursuant to this chapter
for any license applicant currently licensed or certified under other
state ar local law when acting exclusively within the scope of the
craft or profession for which the license or certification has been
issued.
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,Section 10.' Issuance, Refusal and Renewal of Licenses;
Temporary Licensing.
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(1) When an application has been filed with the Division
of License and P�rmit Administration of the Department of
Finance arid Mana.gement Services in proper form the License
Committee shall, within a period of ninety (90� days from the -
date �.k�ereof, issue or refuse the appropriate�: bu.ilding con-
tractor' s license to the applicant. If an application for a
license is refused, the License Committee shall send to the
applicant a written statement setting forth the reasons for
the refusal to grant the license.
• (2) The License Committee sl�all prescribe and furnish
such forms as it ma.y deem appropriate in connection with the
applications �or licenses and the issuance, renew�.l or termina-
tion thereof.
(3) 'An. appiicant for any license reguzred by the provisio�s
of this title shall file with the Division of License and Permit
Administration of the Department of Fina.nee and Ma:nagement
Services a written application which shall be signed and under
oath. As a par't of or in connection with such spplication,
the applicant shall furnish all informa.tion deemed necessary
by the License Comm�ttee to carry out the provisions of this
ordinarice. �
(4) Every building contractor licensee shall within ten (10)
days prior to a change of control in ownership, or of management,
or of change of address or trade name, notify the License Coc�n��tee
of such changes.
(5) Temporary licenses may be issued t�, any applican� for
� a lieen�e who files an application in proper -form and pays the
annua.l license fee therefor and complies with :the bondi�ng and
insurance requirements of the ordinance. � temporary license
sha�.l automa.ticall�r e�pi�e,Fat; th� time th� L�c,ense Cocr�ni�t+�e
either refuses to issue or grants the license.
Section �.�1. � Hearings'. �� { � .
No license sHall bc susge�ded ox. �evoked `until after a hearing
had before tYie i.icense Con�nit�ee upon notice �a�o the licensee of
at least ten (10) days at the address as stated in the license
�...applica�ion. The notice shall be served either personally or by
registered mail and shall state the date and place of hearing arid
set forth the ground or grounds constituting the :ch:arges against the
licensee. The licensee shall be heard in his defense either in
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person or by counsel and may produce witnesses and testi�y in
his behalf. A record of the hearing shall be taken and pre-
� served. The hearing may be adjourned from time to time. The
License Committee shall, after due deliberation, issue an
order modifying or continuing such license. For the purpose
of this chapter, the License Committee may administer oaths,
take testimony, subpoena witnesses and compel the production
of books, papers, records and documents deemed pertinent to the
subject of investigation.
Section 12. Violation and Penalties.
(1) Any person who shall own, conduct or operate a building
contracting business without a license therefor, or who shall
violate any of the provisions of this chapter for which no other
penalty is provicled in such provisions, or having had his license
suspended or revoked shall continue to engage in such business,
shall be guilty of a misdemeanor and upon conviction thereof,
be punished by a fine not to exceed Three Hundred Dollars ($300.00)
or imprisonment for not more than ninety (90) days, or both such
f ine and impr i s orunent.
(2) Any per5on.who shall knowingly aid or abet in the
violation of any pr`ovision of this chapter shall be guilty of a
misdemeanor. .
(3) The Office o�f Consumer Affai�s ma.y; in its discretion,
refuse to accept,, investigate, or mediate a complaint under the
provisions of this� ordinance ' from any �cansumer who shall know-
ingly hire a buildiflg contractor. whQ is iir�lice4nsed.
Section 13. Severability.
In ease any section of this ordinance is held invalid by
� a court of competent jurisdic�aon, the invalidity shall .extend
only �to the section affected, and other sections of this ordi-
nance shall contint�e in full force and effect.
a
WH17E - CITV CLERK . �
' GAN�,R"�,�DEPAR MEK,' � �- GITY OF SAINT PAITL Council /� �`
B4UE� S-�SiApyOR _ � � Fll@ NO. �--/`� ` �
4` ^
� . � ' � 0 rdin�cnce Ordinance N 0. �'��
Presented By
Referred To Committee: Date
Out of Committee By Date
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Section 14. Effective Date.
This ordinance sha.11 take effect and be in force sixty
(60) days from and after its passage, approval and publication.
COUNCILMEN
Yeas Nays � Requested by Department of;
Christensen
Hozza � In Favor
Levine
Roedler L Agalnst BY
Sylvester
��
President Hunt g 1974
�CT Form Approved by City Attorney
Adopted by Council: Date
Certified s by Council eta By
By
�: Approv Mayor: Date � '9 Approved by Mayor for Submission to Council
By� BY
PUBUSHEQ OCT 191974
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(2) e fee for issuing each supplementary or duplicate
license for e lost, destroyed or mutilated shall be Five
Dollars ($5.0 .
(3) The fe s hereinabove set forth shall be those for
licenses issued i the license period of one year.
(4) The Divisi n of License and Permit Administration of
the Department of Fin ce and Management Services shall refund
the fee paid by any ap icant in the event the application for
a license is denied, or he applicant for the license has pre-
deceased its issuance, or has been inducted into the military
service prior to its issua ce. Such refunds should be paid
after approval by the Licen e Committee.
(5) All fees collected all be deposited in the general
revenue fund of the City of Sai t Paul.
Section 6. Powers and Dutie of the License Committee.
To carry out the provisions of his chapter, the License
Committee shall have the °follo�ing `p ers and duties:
(1) To examine -the qu�lific,atiox� and fitness of applicants
for license under this chapter. - �
(2) To keep records of aIi licen'se's ' ssue-cix suspended or
revoked. _
. Section 7. Refusal �u.s ension or Revoc tion of License.
A license to conduct, operate, engage in a d transact a building
contracting business as a building contractor ma. be refused, sus-
pended or revoked, or renewal refused, by the Lic nse Committee for
any one or more of the following causes:
(1) Fraud, misrepresentation or bribery in se ring a license.
(2) The making of any false statement as to a erial matter
in any application for a license.
(3) The business transactions of the contractor ha been
marked by a practice of failure to perform its contracts.
(4) Failure to display the license as provided in thi chapter.
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(6) Willful or deliberate disregard and violation of the
building, ousing, sanitary, health, and fire laws of this state
or the Cit of Saint Paul;
(7) Wil ful failure to notify the License Committee of any
change or cont ol in ownership, management or business name or
location;
(8) Conduct'ng a building contracting business in any name
other than the one in which the building contractor is licensed;
` (9) Wi�,lful f ' lure to comply with any order, demand or
requirement �uade by e License Committee pursuant to provisions
of this chapter;
(10.} As p�rt of or 'n connection with the inducement to ma.ke
a building contract, no rson shall promise or offer to pay credit
charges or allow to a buy any compensation or reward for the
procurement of a building ntract with others;
(11) No building contra or shall offer to pay a loan as an
inducement to enter into a bu ding contract;
(�2� No acts, agreements o statements of a buyer under a
building contra�t shallvconstitu e ,a w�ive�: 4f any provisions of
this chapter intended far the b`en f'it or p�otection of the buyer;
(13) Displ`ay o£ �a false` cir �o ed 1i,�ense:
Section 9. �xceptions. �' ` `
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� No license�under this chapter sha be required of any person
when acting in the particular capacity particular type of
transaction set forth in this section:
°`� (1) An individual who performs labo or services for a
building contractor for wages or salary.
. �'' (2) ' Any retail clerk, clerical, admini trative or other
employee of a licensed building contractor a to a transaction
on the premises of the contractor.
`� (3) This chapter shall not apply to a bu lding contract
otherwise within the purview of this local law hich is ma.de '
prior to the effective date of the xespective p visions of
this chapter governing such contracts.
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�' �. j (4) , A�ay person Mho ia required bp the stste or loea� lsx tcr attsin
stsadsards oY co�rpeteney or ta4Perience a�s a prereqai��.te to �ngagia8 iri snch ,
craPt=a�' prc>feasion and �Im is :acting ezclusively xifihia tlLe' sac�pe of ��re c�raFt
or profesR3e�> !or Whi.ch he is c�rrea�ly lic�ttsed � to such other law.
, , � ��( I "l1�
-6-
�2) The fee for issuing each supplementary or duplicate
license` for one lost, destroyed or mutilated shall be Five
Dollars ($5 .00) .
(3) T�j.e fees hereinabove set forth shall be those for
licenses iss�ed for the license period of one year.
�
(4) The f�ivision of License and Permit Administration of
the Department ` Finance and Ma.nagement Services shall refund
the fee paid by�y applicant irt the event the application for
a license is denie�l, or the applicant for the license has pre-
deceased its issuan+�e, or has been inducted into the military
service prior to its�.issuance. Such refunds should be paid
after approval by the' License Committee.
(S) All fees coll cted shall be deposited in the general
revenue fund of the City�of Saint Paul.
�
,
ti
Section 6. Powers an Duties of the License Committee.
To carry out the provisi ns of this chapter, the License
Committee shall have the foll ing powers and duties:
(1) To examine the qualifi ations and fitness of applicants
for license under this chapter.
(2) To keep records of al1 1 censes issued, suspended or
revoked. �
Section 7 . Refusal Sus ension Revocation of License.
A license to conduct, operate, eng ge in and transact a building
contracting business as a building contr ctor may be refused, sus-
pended or revoked, or renewal refused, b the License Committee for
any one or more of the following causes:
(1) Fraud, misrepresentation or bribe y in securing a license.
�
(2) The making of any false statement �s to a ma.terial matter
in any application for a license. �
(3) The business transactions of the con�ractor have been
marked by a practice of failure to perform its +�ontracts.
• (4) Failure to display the license as prov�ded in this chapter.
,
. �-��---► i "� �
' y _ '
�$�
'-...
\
(6) Wil ful or deliberate disregard and violation of the
building, hous g, sanitary, health, and fire laws of this state
or the City of int Paul;
(7) Willful ailure to notify the License Committee of any
change or control i ownership, management or business name or
location; �
�a
(8) Conducting a uilding contracting business in any name
other than the one in w 'ch the building contractor is licensed;
(9) Willful failure o comply with any order, demand or
requirement ma.de by the Lic nse Committee pursuant to provisions
of this chapter;
�
(10) As part of or in con ection with the inducement to ma.ke
a building contract, no person hall promise or offer to pay credit
charges or allow to a buyer any ompensation or reward for the
procurement of a building contrac with others;
_ ,�
(11) No building contractor s � 11 offer to pay a loan as an
inducement to enter into a building ontract;
(12) No acts, agreements or stat ents of a buyer under a
building contract shall constitute a w iver of any provisions of
this chapter intended for the benefit o protection of the buyer;
(13) Display of a false or forged li ense.
Section 9 . Exceptions.
No license under this chapter shall be equired of any person
when acting in the particular capacity or par icular type of _
transaction set forth in this section:
(1) An individual who performs labor or s rvices for a
building contractor for wages or salary.
. (2) Any retail clerk, clerical, administrat 've or other
employee of a licensed building contractor as to transaction
on the premises of the contractor.
�.
� (3) This chapter shall not apply to a buildin� contract
otherwise within the purview of this local law which.. is made
prior to the effective date of the respective provisi�ons of
this chapter governing such contracts. �;
�
(4) Any person �ho is required by the state or local law � attsin standsrds
of competency or experience �s a prerec�isite to eagaging in 8uch craf't or profession
and r�hc is acting eacclusively xlthin the scop� of the crat't or prbYession for xhich
he 3a currently licensed purst�ant to such other ].a�►.
��yi 1 '�
-6-
(2) The ee for issuing each supplementary or duplicate
license for one ost, destroyed or mutilated shall be Five
Dollars ($5 .00) .
(3) The fees ereinabove set forth shall be those for
licenses issued for he license period of one year.
(4) The Division of License and Permit Administration of
the Department of Finan and Management Services shall refund
the fee paid by any appl ant in the event the application for
a license is denied, or t applicant for the license has pre-
deceased its issuance, or s been inducted into the military
service prior to its issuan . Such refunds should be paid
after approval by the Licens Committee.
(5) Al1 fees collected s 11 be deposited in the general
revenue fund of the City of Sai t Paul.
Section 6. Powers and Duties�, of the License Committee.
To carry out the provisions of�this chapter, the License
Committee shall have the following p�wers and duties: •
,
(1) To examine the qualification� and fitness of applicants
for license under this chapter.
(2) To keep records of all �license issued, suspended or
revoked. '��
Section 7 . Refusal Sus ension or Re cation of License.
A license to conduct, operate, engage i' and transact a building
contracting business as a building contractor�may be refused, sus-
pended or revoked, or renewal refused, by _the `�icense Committee for
any one or more of the following causes: �
(1) Fraud, misrepresentation or bribery in`� securing a license.
�
(2) The making of any false statement as to`'�,a material matter
in any application for a license. "�:
��.
��
(3) The business transactions of the contract��r have been
marked by a practice of failure to perform its cont�.cts.
. �,
(4) Failure to display the license as provided �'�n this chapter.
;.
. �a�� � � �
� � �t
_8_
(6) Willful or deliberate disregard ancl violation of the
buildin housing, sanitary, health, and fire laws of this state
or the Ci of Saint Paul;
(7) Wi lful failure to notify the License Committee of any
change or con rol in ownership, management or business name or
location;
(8) Conduct�'ng a building contracting business in any name
other than the one°�n which the building contractor is licensed;
�
(9) Willful fai ure to comply with any order, demand or
requirement made by th� License Committee pursuant to provisions
of this chapter; '�,�
(10) As part of or in�'a:connection with the inducement to make
a building contract, no per'` on shall promise or offer to pay credit
charges or allow to a buyer y compensation or reward for the
procurement of a building con act with others;
(11) No building contracto shall offer to pay a loan as an
inducement to enter into a buildi g contract;
(12) No acts, agreements or st tements of a buyer under a
building contract shall constitute a waiver of any provisions of
this chapter intended for the benefit r protection of the bu�er;
(13) Display of a false or forged ' cense.
Section 9. Exceptions.
No license under this chapter shall be equired of any person
when acting in the particular capacity or pa icular type: of
transaction set forth in this section:
(1) An individual who performs labor or s vices for a
building contractor for wages or salary.
. (2) Any retail clerk, clerical, administrati e or other
employee of a licensed building contractor as to a ransaction
on the premises of the contractor.
� (3) This chapter shall not apply to a building ontract
otherwise within the purview of this local law which i` made
prior to the effective date of the respective provisio of
this chapter governing such contracts .
(4) Any per$on who ia required by the sta.te or local law to a taiu sta�tdard8
of �o�petency or eaperienee as a prereqaisite to e�gaging in such cr or pra�'easion
and �ho is �ing eaclusiv�ely yrithin the scope cf the craf"t or proPes crn f'ar� �rhich
he is c�rrently licensed ptirsusnt• to sueh other lax.
� ��II ) �
, . ,,
-6-
(2) Th �ee for issuing each supplementary or duplicate
license for o e lost, destroyed or mutilated shall be Five
Dollars ($5.0 .
(3) The fq,es hereinabove set forth shall be those for
licenses issued �,or the license period of one year.
i
(4) The Divi�ion of License and Permit Administration of
the Department of F�;nance and Management Services shall refund
the fee paid by any �plicant in the event the application for
a license is denied, o,� the applicant for the license has pre-
deceased its issuance, pr has been inducted into the military
service prior to its is ance. Such refunds should be paid
after approval by the L�nse Committee.
3,
�
(S) Al1 fees collecte� shall be deposited in the general
revenue fund of the City of �aint Paul.
Section 6. Powers and Du� 'es of the License Committee.
To carry out the provisions ��f this chapter, the License
Committee shall have the followin�powers and duties :
(1) To examine the qualificat�ns and fitness of applicants
for license under this chapter.
(2) To keep records of all licen es issued, suspended or
revoked. �
�
�a
Section 7 . Refusal, Sus ension or R�vocation of License.
A license to conduct, operate, engage `'n and transact a building
contracting business as a building contracto : ma.y be refused, sus-
pended or revoked, or renewal refused, by the License Committee for
any one or more of the following causes: �"�
.,3
(1) Fraud, misrepresentation or bribery i� securing a license.
'�,
(2) The ma.king of any false statement as ta, a material matter
in any application for a license.
(3) The business transactions of the contrac�or have been
.
marked by a practice of failure to perform its cont�acts.
(4) Failure to display the license as provided in this chapter.
. �-�y I �) �
� �,
-8-
(6) W lful or deliberate disregard and violation of the
building, ho ing, sanitary, health, and fire laws of this state
or the City o Saint Paul;
(7) Willfu failure to notify the License Committee of any
change or control 'n ownership, management or business name or
location;
(8) Conducting building contracting business in any name
other than the one in ich the building contractor is licensed;
(9) Willful failure to comply with any order, demand or
requirement ma.de by the Li nse Committee pursuant to provisions
of this chapter;
(10) As part of or in co ection with the inducement to ma.ke
a building contract, no person hall promise or offer to pay credit
charges or allow to a buyer any ompensation or reward for the
procurement of a building contrac with others;
(11) No building contractor s 11 offer to pay a loan as an
inducement to enter into a building ontract;
(12) No acts, agreements or stat ents of a buyer under a
building contract shall constitute a w iver of any provisions of
this chapter intended for the benefit o protection of the buyer;
(13) Display of a false or forged li ense.
Section 9 . Exceptions.
No license under this chapter shall be equired of any person
when acting in the particular capacity or par icular type of .
transaction set forth in this section:
(1) An individual who performs labor or s rvices for a
building contractor for wages or salary.
. (2) Any retail clerk, clerical, administrat ve or other
employee of a licensed building contractor as to aatransaction
on the premises of the contractor. '•
� (3) This chapter shall not apply to a building contract
otherwise within the purview of this local law which is ma.de
prior to the effective date of the respective provisions of
this chapter governing such contracts.
(�+) Aqy person rl�o is require8 by the state or local lax to attain staadards
of competeacy or ex�erience as s prereq�isite to engaging in such �raPt or professioa
and xhc� is acting exclu�i�rely Mithin the scrope oP the craFt or profe�eion..for Which
he is currently licensed purauant to auch ot.her l.sw.
,
` � From the desk of � � �- 7 !
� � PIERRE N. REGNIER
Deputy Ciry Attorney
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� '� ���` CITY OF SAINT PAUL
OFFICE OF THE CITY ATTORNEY
August 26, 1974 � R. SCOTT DAVIES
• . .
M
�"'' -
Mr. John E. Christensen, Chairman
Legislation Committee of the
Saint Paul City Council
Seventh Floor
Building
Dear Sir:
You ha.ve submitted to our office for approval as to form
an ordina.nce providing for the licensing of building con-
tractors which is to be introduced by Councilman Roedler.
The legislative committee voted to refer this ordina.nce to
the Council with the recommendation that it be approved.
I am forwarding this ordina.nce to you with form approval,
and I would request that the following amendments be made
(�!�14� to this ordina.nce at the time it is introduced to Council;
�
' 1. Section 1 (1), second line should be amended by in-
� serting the word "buildingt' prior to the word "con-
y � �S tractor.
���"1 2 . Section 1 (2), second line, "construction" should be
��"� deleted, and the word "contracting" inserted.
�
3. Section 1 (5), the word "contractor" should be deleted,
and inserted in its place should be the word "con-
tracting."
4. Section 1 (6), in the third line prior to the word
"contractor" should be inserted the word "building."
5. Section 2 �1), in the first line after the words
"engage in' should be inserted "the building contract-
ing business"� and in the last line the word "section"
shrn�.ld be deleted and in its place, the word "chapter."
6. Section 2 (4), in the second line prior to the word
"contractor" should be inserted the word "building."
City Hall, Saint Paul, Minnesota 55102
612 298-5121
�A�19� ��a
�'"
aor� c�, � s�� i974
Yeas Nays
RO(EDLER
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�smn�T (�r) ,
• -
Mr. John E. Christensen
Page Two
August 26, 1974
7. Section 8 (1), in the third line, the word "building"
should be inserted before the word "contractor."
8 . Section 8 (S�, in the second line after the word
"contracting ' should be inserted the w�ord "business."
9. Section 8 (8) , in the second line prior to the word
"contractor", should be inserted the word "building."
10. Section 8 (11), in the first line prior to the word
"contractor", insert the word "building."
11. Section 9, in the first line� the word "contractor's"
should be deleted� and the following should be inserted
after the word "license": "under this chapter."
12 . Section 9 (1) , in the first line prior to the word
"contractor", insert the word "building."
13. Section 9 (2), delete the word "license", and insert
"licensed building."
14. Section 10 (1) prior to the word "contractor' s"� in-
sert the word �'building."
15. Section 10 (4), prior to the word "contractor", insert
the word "building."
The above suggested amendments do not change any of the mean-
ing and content of the ordinance, but are merely wha.t could
be considered housekeeping amendments which clarify certain
terms to avoid future disputes as to the interpretation of
certain terms . If you ha.ve any questions with regard to this
ma.tter, please feel free to contact this office at any time.
Yours truly,
�����
PIERRE N. REGNIER
Deputy City Attorney
PNR:er
Att.
cc:Robert Ma.ttson�. Cansumer Affairs
Councilman Patrick Roedler
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YA1CM 11M
CITY OF SAINT PAUL
OFFICE OF TI3E CITY COUNCIL
CITY HALL AND COURT HOUSE
SAINT PAUL, MINNESOTA 55102
September 3, 1974
Mrs. Rose Mix, City Clerk
Room 386 - City Hall
St. Paul , Minnesota
Dear Mrs. Mix:
The enclosed ordinance providing for the licensing of building
contractors, establishing requirements and providing penalties,
has been considered by the Legislation Committee and is referred
to the Council with the recott�nendation that it be approved.
�
John E. Christensen
Councilman
2�
. � r .
, , �,
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Me6irw•ru
Y��CM�111
FILED
CITY OF SAINT PAU� �� � �? �� ���
OFFICE OF THE CITY COUNC
CITY HALL AND COURT HOUSE CITY Cl.ERK'S QFFlC€
SAINT PAUL. MIN1\TESOTA 55102 ST PAUL.���N.
August 22, 1974
Mrs. Rose Mix
City Clerk
386 City Hall
Dear Mrs. Mix:
At its meeting on August 15, 1974 the Legislation Committee
approved an ordinance providing for the licensing of building
contractors and voted to refer this ordinance to the Council
with the recommendation that it be approved. The ordinance
was formerly referred to as "the home improvement ordinance."
The ordinance was sent to the City Attorney for approval as
to form with the request that he then send it to you.
Very truly yours,
� �.
OHN E. CHRISTENSEN, Chairman
Legislation Committee
JEC:mI
22
WHITE - CITY CLERK �641'73
PINK - �INANCE COIIIICll
CANARY -.6EPARTMENT GITY OF SAINT PALTL
BLUE -•MAYOR File NO.
, � .
" t �
, r in�nce Ordinance N 0.
.
Presented By
Referred To Committee: Date
Out of Committee By Date
An ordin nce providing for the licensing of building contractors;
establish g requirements and providing penalties .
THE COUNCIL THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1. Defin tions . As used herein, the term:
(1) "Building contra ting business" means the construction of a
new home, building or work do by a contractor in compliance with a
guarantee of completion of a ne building pro3ect , or the repair, replace-
ment , remodeling , alteration, con rsion, modernization, improvement, or
addition to any land or building, o that portion thereof which is used or
designed to be used as a private resi ence or dwelling place, and shall
include but not be limited to the insta lation, construction, replacement
or improvement of driveways (concrete or lacktop) , swimming pools, porches ,
garages, fallout shelters , central heating r air conditioning systems,
central vacuum cleaning systems , storm windo s, awnings or fire or burglar
alarms, and other improvements to structures r upon land which is ad�a-
cent to a dwelling house. "Building contractin business" shall not
include (a) the sale of goods or materials by a s ller who neither arranges
to �perform nor performs directly or indirectly any rk or labor in connec.-
tion with the installation of or application of the ods or materials, or
(b) buildings owned by or controlled by the state or a municipal subdi-
vision thereof , or (c) work which is done by private pa ies not regularly
engaged in the building construction business without com nsation.
COUNCILMEN
Yeas Nays Requested by Department of:
�SXt Roedler
�1���$� Ho z z a In Favor
Levine
���� Sylvester Against BY
�&�� Christensen
Tedesco
Mme.President��$(r Hunt Form Appcoved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY
. . - 2 - ������t.i
(2) "Building contractor" means any person, other than a bona fide
employ e of the owner , who owns or operates a building construction �usiness
or who u dertakes or offers to undertake or agrees to perform any new con-
struction or improvement , whether or not such person is licensed or subject
to the lic sing requirements of this chapter and whether or not such person
is a prime c ntractor or subcontractor with respect to the owner . This
shall not app to any person who performs work without compensation.
(3) "Bui ding contract" means an oral or written agreement between
a contractor and owner for the performance of a building contract, and
includes all labor , services, and materials to be furnished and performed
thereunder.
(4) "Building ontractor ' s establishment" means any shop , establi�h-
ment , place or premises where a building contractor ' s business is carried
on.
(5) "Licensee" mea s a person licensed to engage in the building
contractor business under t e provisions of this chapter.
(6) "Owner" means any omeowner, tenant , or any other person who
orders, contracts for, or pure ses the services of a building contractor ,
or the person entitled to the p formance of the work of a contractor
pursuant to a building contract .
(7) "Person" means an indiv dual, firm, partnership , association,
corporation, or other group acting a a unit , however organized.
(8) "Director" means the direc or of the Office of Consumer Affairs .
(9) "License committee" means th license committee for the Saint
Paul City Council .
Section 2. License Required.
(1) No person shall own, maintain, co duct , operate, engage in or
transact a building contract after the provisi ns of this ordinance become
effective or hold himself out as being able to o so after such date unless
he is licensed therefor pursuant to this sectio
(2) A license issued pursuant to this sec on may not be construed
to authorize the licensee to perform any particular type of work or kind
of business which is reserved to qualified licensees under separate provi-
sions of state or local law; nor shall any license or uthority other than
as is issued or permitted pursuant to this section auth rize a person to
engage in the building contracting business .
(3) Nothing in thi�schapter shall be construed to li it or restrict
the power of the City of Saint Paul to regulate the quality, erformance,
or character of the work of contractors including a system of ermits and
inspections which are designed to secure compliance with and ai in the
enforcement of applicable state and local building laws, or to e force
other laws necessary for the protection of the public health and afety.
Nothing in this chapter limits the power of the City of Saint Paul to
adopt any system of permits requiring submission to and approval b the
city of plans and specifications for an installation prior to the commence-
ment of construction of the installation or of inspection work done.
. . - 3 - �s4�.��
(4) Except when otherwise specifically exempted by the provisions
of th s chapter , no person shall act in the capacity of a contractor unless
autho zed to do so by a license issued in accordance with the provisions
of thi chapter.
S tion 3 . Building Contractor' s Licanse; Requirements.
(1) Every application for a license shall be accompanied by a bond ,
approved as form by the city attorney, executed by a bonding or surety
company autho zed to do business in the State of Minnesota, in the amount
of Twenty-Five undred Dollars ($2 ,500. 00) , conditioned upon the assurance
that during the erm of such license, the licensee will continue to comply
with the provisio s of this cIiapter and all laws of the city and to assure
that upon default the performance of any contract , the advance payments
made thereon, less e reasonable value of services actually rendered to
the date of such def lt , or the reasonable costs of completion of the con-
tract in the event or oncompletion thereof , will be refunded to the pur-
chaser , owner, or less with whom such contract was made. Both the home-
owner and the city shal have a cause of action agairis� the bond for reim-
bursement for any damages suffered as a result of noncompliance with the
laws of the citg.
(2) A building contr ctor shall, prior to being allowed to engage
in business , furnish to the C y of Saint Paul a copy of a liability insurance
policy or a certificate of insu ance , naming the city as a co-insured
under the terms of the policy. he liability insurance policy shall pro-
vide bodily in�ury insurance, inc uding death, in an amount not less than
Twenty-Five Thousand Dollars ($25 , 00. 00) for all damages arising out of
bodily in3ury to, or death of, one rson and, subject to the same limit
for each person, in an amount of not ess than Fifty Thousand Dollars
($50,000. 00) on account of any one ac dent , and further property damage
insurance in an amount not less than F ve Thousand Dollars ($5 , 000. 00)
for all damages to or destruction of pr erty in any one accident , and
sub3ect to that limit per accident , and rkmen' s compensation insurance.
The applicant shall also furnish to the c ty the employer social security
account number, the unemployment insurance account number , the state with-
holding tax account number and t�ie federal ithholding tax account number.
(3) Any applicant for a license to en age in a building contracting
business under the provisions of this ordinanc shall first file with the
Division of License and Permit Administration o the Department of Finance
and Management Services a written application fo such license on a form
to be provided by the Division and such other in rmation as is required.
(4) The applicant , prior to issuance of a 1 cense by the License
Committee, shall register its name with the Office o Consumer Affairs and
such other information as is deemed necessary by the irector .
Section 4 . Licenses• Dis la • Renewals • Du lica e.
(1) All licenses shall be for a period of one yea from the date
of �ssuance and shall expire on the last day of the twelft month following
issuance.
. - 4 - , �641'73
� .
(2) No license shall be assignable or transferalale except as
hereinafter provided . A license to conduct a #ililding contracting business
issued o an individual may be assigned or trafisferred for the remainder
of the 1 ense period to a partnership or corporation if such individual is
a member o such partnership or a stockholder of such corporation owning
not less th twenty-five (25) per cent of the outstanding stock at the
time of such ssignment or trasnfer . A license issued to a partnership
may be assigne or transferred for the remainder of the license period to
any one member such partnership, provided he obtains the consent of
all of the other embers of such partnership . The application for such
transfer or assign ent must be accompanied by proof satisfactory to the
License Committee t t the requirements herein provided have been complied
with. No assignment r trat�sfer shall become effective unless and until
the endorsement of the transfer or assignment Iias been made on the face to
the license by the Lice se Committee and sucIz license, so endorsed, has
been returned to the ass nee or traa�feree. All such endorsements shall
he made upon payment of a ee of �ive dollars.
(3) Each licnese iss ed pursuant to this chapter shall be posted
and kept posted in some consp 'cuous place in the building contractor ' s
establishment if the licensee perates a regular place of business.
(4) Any license which ha not been suspended or revoked may, upon
the payment of the renewal fee pr scribed by this chapter, be renewed for
an additional period of one year f om its expiration, upon filing of an
application for such renewal on a f rm to be prescribed by the License
Committee. Such application for ren wal shall be filed at least 30 days
prior to the expiration date of �he 1 cense. The Division of License
and Permit Administration shall give w itten notice to the licensee at
least 60 days prior to expiration.
(5) A dup'l�cate license may be is ued for one lost, destroyed or
mutilated upon application therefor on a rm prescribed by the License
Committee and tfie payment of the fee presc bed therefor by this chapter.
Each such duplicate license shall have the ord "duplicate" stamped across
the face thereof and shall bear the same num er as the one it replaces.
(6) A supplementary license may be iss ed for each additional place
of business maintained by a licensee within the City of Saint Paul upon
application therefor on a form prescribed by th License Committee and the
payment of the fee prescribed therefor by this c pter. Each such supple-
mentary license shall have the word "supplementar " stamped across the
face thereof and shall bear the same number as the original . Any license
issued for a particular place of business is limite to the specific loca-
tion as described in the application.
(7) Prior to issuance or renewal of the licens the Office of
Consumer Affairs shall be required to review the applica ion and report
to the License Committee its recommendation, if any.
(8) The Building Department of the city shall not i sue a building
permit to anyone required to be licensed u�ider this chapter o is not at
the time of ap��:ication for the permit properly licensed .
; - 5 - �s41
, � �3
Section 5 . Fees.
(1) The fee for a license to conduct a building contracting busi-
ness shall be Twenty Five Dollars ($25 . 00) and for each renewal thereof
the fe shall be Twanty Five Dollars ($25. 00) .
( ) The fee for issuing each supplementary or duplicate license
for one 1 st, destroyed or mutilated shall be Five Dollars ($5 . 00) .
(3) he fees Iiereinabove set forth sfiall be those for licenses
issued for th license period of one year.
(4) The D 'vision of License and Permit Administration of the
Department of Fina e and Management Services shall refund the fee paid
by any applicant in e event the application £or a license is denied, or
the applicant �or the icense fias predeceased its issuance, or has been
inducted into the milit y service prior to �ts issuance. Such refunds
should be paid a�ter �ppr val by tfie License Committee.
(5) All �ees collect d shall be deposited in the general revenue
�und of the City o� Saint Pau .
Section 6. Powers and Du es of the License Committee.
To carry out the provisions this chapter, the License Committee
shall have the following powers and ties :
(1) To examine tfie qualification and fitness of applicants for
license under this chapter .
(2) To keep records of all licenses ' ssued, suspended or revoked.
Section 7 . Refusal Sus ension or Revo ation of License.
A license to conduct , operate, engage in d trans,�et a building
contracting business as a building contractor may e re'fused, suspended or
revoked , or renewal refused , by the License Commit e for any one or more
of the following causes:
(1) Fraud , misrepresentation or bribery in sec ring a license.
(2) The making of any false statement as to a ma erial matter in
any application for a license.
(3) The business transactions of the contractor hav been marked
by a practice of failure to perform its contracts.
(4) Failure to display the license as provided in this hapter.
(5) Violation of any provision of this chapter, or of any ule or
regulation or city law within the scope of regulating a building c tracting
business for the protection of consumers .
(6) Violations by the licensee and/or persons acting under the
direction and control of tiie licensee of any federal or state statute o
municipal ordinance arising out of and during the scope of business con-
ducted hy the licensee.
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Sl�ction 8 . Prohibited Acts.
The folloar�ng acts are prohi&ited :
(1 AUandonment or willful failure to perform and the failure is
not due t circ�mstances beyond tIie control of the licensee, any building
contract o pro�ect engaged �n or undertaken by a contractor, or willful
deviation f om or disregard of plans or specifications in any material
respect with t the consent of tI�e own�r;
(2) Mak g any subatantial misrepresentation in the procurement
of a building con ract , or making any false promise likely to influence,
pursuade or induce,
(3) Any fraud n the execution of or in the material alteration of
any contract , mortgage, romissory note or otlier document incident to a
huilding contracting tra action;
(4) �reparing or ac epting any mortgage, promissory note or other
evidence of inde�tedness upo the obligations of a building contract trans-
action wi�h knowledge tl�at it ecites a greater monetary obligation than
the agreed consideration for tfi building contracting work, which con-
stitutes an abuse to the consume •
(5) Directly or indirectly ublishing any advertisement relating
to building contracting which contai an assertion, representation or
statement o� fact which is �alse, dec tive or misleading, provided that
any advertisement which is sub3ect to a d complies with the then existing
rules, regulations or guides of tIle Fede al Trade Commission laws of the
State of Minnesota and the City of Saint aul, sha11 not be deemed falae,
deceptive or misleading; or by any means o advertising or purporting to
offer the general public any building contra ting work with the intent not
to accept contracts for the particular work o the price which is adver-
tised or offered to the public;
(6) Willful or deliberate disregard and olation of the building ,
housing, sanitary, health, and firelaws of this s te or the City of Saint
Paul;
(7) Willful failure to notify the License Com ittee of any change
or control in ownership, management or business name o location;
(8) Conducting a building contracting business i any name other
than the one in which the contractor is licensed ;
(9) Will�ul failure to comply with any order, deman or requirement
made by the License Committee pursuant to provisions of this hapter;
(10) As pgrt of or in connection with the inducement to make a
building contract , no person shall promise or offer to pay credi charges
or allow to a buyer any compensation or reward for the procuremen of a
huilding contract tirith others ;
(11) No contractor sliall offer to pay a loan as an inducemen to
enter into a building contract ;
. .
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(12) No acts , agreements or statements o� a huyer undex a hui.lding
contract shall constitute a waiver o� any provisions o� this chapter in-
tended`for tlie bene�it or protection of the huyer;
�
(I ) Display of a false or forged license.
Sec ion 9. Exceptions.
No co tractor�s license sliall be required of any person when acting
in the partic ar capacity or particular type of transaction set forth in
this section:
(1) An in 'vidual who per£orms labor or services for a contractor
for wages or salary
(2) Any retail clerk, clerical, administrative or other employee
of a license contractor s to a transaction on th.e premises of the con-
tractor.
(3) This ct�apter sha 1 not ap�ly to a building contract otherwise
Frithin tIie purview of this l0 1 law wliich is made prior to the effective
date of the respective provisio s of this chapter governing such contracts.
Section 10. Issuance Ref al and Renewal of Licenses • Tem orar
Licensing.
(1) When an application has b n filed with the Division of License
and Permit Administration of the Depar ent of Finance and Management
Services in proper form, the License Com ittee shall, within a period of
ninety (90) days from the date thereof , i sue or refuse the appropriate
contractor � s license to the applicant . If an application for a license
is refused , the License Committee shall sen to the applicant a written
statement setting forth the reasons for the r fusalto grant the license.
(2) The License Committee shall prescri e and furnish such forms
as it may deem appropriate in connection with th applications for licenses
and the issuance, renewal or termination thereof .
(3) An applicant for any license required by the provisions of
this title shall file with the Division of License an Permit Administration
of the Department of Finance and Management Services a ritten application
which shall be signed and under oath. As a part of or i nonnection with
such application, the applicant shall furnish all informa on deemed
necessary by the License Committee to carry out the provis ns of this
ordinance.
(4) Every contractor licensee shall within ten (10) da s prior to
a change of control in ownership, or of management , or of chang of address
or trade name , notify the License Committee of such changes.
(5) Temporary licenses may be issued to any applicant for � license
who files an application in proper form and pays the annual license ee
tizerefor and complies with the bonding and insurance requirements of e
ordinance. A temporary license shall automatically expire at the time he
bicense Committee either refuses to issue or grants the license. �
. � - 8--_ ,�s4��
, , � 3
, ,�
Section 11 . Iiea'ririgs.
� No license sha11 be suspended or revoked until a�ter a hearing
had he License Committee upon notice to tlie licensee of at least
ten (1 days at tFie address as stated in the license application. The
notice s all be served eittier personally or by registered mail and shall
state the ate and place of IZearing and set fortfi the ground or grounds
constitutin the charges against the licensee. The licensee shall be
heard in his efense either in person or by counsel and may produce wit-
nesses and tes fy in his behalf . A record of the hearing shall be taken
and preserved . Iie hearing may be adjourned from time to time . The
License Committee sTiall, after due deliberation, issue an order modifying
or continuing sucli icense. For the purpose of this chapter, the License
Committee may admini ter oaths, take testimony, subpoena witnesses and
compel the production f books, papers , records and documents deemed per-
tinent to the sub�ect o investigation.
Section 12. Viola ion and Penalties.
(1) Any person who s all own, conduct or operate a building
contracting business without license therefor, or who shall violate any
of the provisions of this chap er for which no other penalty is provided
in such provisions, or fiaving h his license suspended or revoked shall
continue to engage in such busine s , shall be guilty of a misdemeanor and
upon conviction thereof , be pi�n�.sh d by a fine not to exceed Three Hundred
Dollars ($300. 00) or imprisonment f not more than ninety (90) days, or
both such fine and imprisonment.
(2j Any person who shall knowin ly aid or abet in the violation of
any provision of this chapter shall be g ilty of a misdemeanor .
(3) The Office of Consumer Affairs ay, in its discretion, refuse
to accept, investigate, or mediate a complai t under the provisions of
this ordinance from any consumer who shall kn wingly hire a building con-
tractor who is unlicensed.
Section 13. Severability.
In case any section of this ordinance is held invalid by a court
of competent �urisdiction, the invalidity shall exten only to the section
affected , and other sections of this ordinance shall co tinue in full force
and effect.
WH17E - CITV CLERK C01111C11 2641'73
PINK - FINANCE
CANARY.-bEPARTMENT GITY OF SAINT PAUL
BLlIE° -.MAYOR . Fll@ NO.
� ' ' � •
� ��
� Or in�nce Ordinance N0. .
Presented By
Referred To Committee: Date
Out of Committee By Date
Secti n 14 . Effective Date.
This ord ance shall take effect and be in force sixty (60) days
from and after it passage , approval and publication.
��
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COUIVCILMEN
Yeas Nays Requested by Department of:
�H� Ro ed 1 ez In Favor
�4���FiX Ho z z a
Levine
�X��� Sylvester Against By
�4@� Christensen
Tedesco
Mme.President BluX1�K Hunt
Form Approved by City Attorney
Adopted by Councii: Date
Certified Passed by Council Secretary BY
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY
. , 2-1��-l�1� �
�� '� � 1TY OF ��: iRIT �'AU !.
OFFICE OF CONSUMER AFFAIRS
R. SCOTT DAVIES RpgERT W. MATTSON
CITY ATTO�:NEY DIRECTOR
October l, 1974
Cauncil Pr.esident Ruby Hunt
and
Honnra�le Members o� the City Council
Oz� We�nesday, Septen►ber 25, 1974, an amer.dm�nt to Coun.cil File
�i 264173 , deala.ng with �he licensing of building con�cractors, was
� passed by the City Council. Tizis amendment exempted from the
i license requirement those persons licensed under other state
� . or lacal law acting exclusively within- the scope of such license.
; The Office of Consumer Affairs was not aware tha� this am2nd-
@ ment wo�.zld be offered and ciid not have an opportunity to comment
� upon its ramifi.cations for consumer protection at that time.
� Therefore, pursuant to i�s respons�bilities ar.dEr the cons�amer
� protection orc�inance, the Office during the last week has made
� a review and analysis of the irnpact of the recent amendment�
a
This information is provided to assist the Council in making an
� - inforaned dec�si.en based upon all relevant f�.cts.
� This amendment w�uld exclude from •the license requiremen.t several
� types of contractors against whic:h this aftice has received
� cc,mplaints: el�ctri.cal contraatars, plumbing contractors, air
" c�ndit.iarzing contractors, furnace contracta.rsf cement or bitu-
minous cont.ractors , and carpet szllers.
� � - Compla�nts against �uch excluded contxactors account for �0_out __ ..
� of a tota:, of ].Z3 complaints ir.valving �uilding contractors, or
� 44� of all �uch �ornplaints. These �omplaintG involved approxi-
, mately $32 ,000 out of $1i5, 000 in contract or disputed amounts ,
� or 27� of the total. Ir� 50�a of the complair.ts against excluded
� con�r�ctox•s, th� Gifice of Co�2s�.rner Affairs ���as able to wark
out a settlem�nt a.nvolv�r,.g either «ork completion or a manetary
adjustment. Tre a•��rdge settZem�nt amount in these cases was
$255. The over�ll success rate in deali�g with excluded con-
i.ractors was apnroxima��:e1y �he san:e as �or all building con-
tractorse The length of_ �ime :�nvolved in investigation of the
� cases �aas siightly longer.
�
� City Hall, Saint Paul, Minnesota 551U2
� 612 298-45G7
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� Page 2
October 1, 1°74
CounciZ President and Members
of the City Council
The most comznon types of problems exhibited in complaints
against contractors excluded under this amendment involved
poor workmanship or materials, in 33 out of 50 cases, disputed
amounts of the biZls, or f ailure to complete work.
The Office of Consumer Affairs has checked with other consumer
protection agencies in an effort to learn their experience
with contractors who would be excluded under this amendment.
The Minneapolis Consumer Affairs Office has received 150 com-
pl�ints i.n the home imgrovement field. Of these, 42, or approxi-
mately one-third, were against firms which would be excluded
under the amendment. In 1973, the St. Paul Better Business
Bureau had 3Z7 buildzng contractor complaints. The statistics
of �.lze Bureau are not based upon categories which provide full
information an the number of complaints against excluded busi-
nesses. However, the Bureau° s breakdown does indicat� at least
° 70 such complaints. At a Legislatior_ Committee hearing on this
ordinance, Mrs. Chenoweth of the Minnesota Consumer Services
Division stated that a substantial number of home improvement
} complaints received in her office are against established
R, companies. It is reas�nable to assume tYiat some of these com-
plaints would involve firms exciuded under the amendment.
The amendment is based upon a section of a proposed Minneapolis
ordinance . It should be noted that the Minx�eapolis Consumer
�•�..
- A£fairs Office is authorized to make recommendations on any
license issued by the city. The St. Paul Consumer Protection
Ordinance Number 15268 specifies that the Consumer Affairs
division may recommend through the City Council License Committee
the revocation of licenses for vendors found in violation of
the consumer protection laws. However, the licenses for most
contractors excluded under this amendment are granted through
the Building Department and do 1'10't Pc'3SS throucrh �he License
~:. _, _ _ Committee. _ _ . __, .� .
�= On the basis of the above information, it is the opinion of the
Office of Consumer Affairs that adequate protection of the
consumer requires that contractors excluded under the recent
4� amendment be fully covered by the provisi�ns of this ordinance.
We suggest that there are two possible ways in which this might
be done.
The first, simplest, a:�d, we believe, most preferable way to
insure that alI building contractors conform to all the con-
sumer protection elements which are embodied in this ordinance
is to retain the requirement that all building contractors be
licensed under the ordinance , but to waive the license fee for
those already holding a license under other state or local law.
�
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Page 3
October 1, 1974
Council President and Menbers
of the City Council
We are advised by counsel in the City Attorney' s Office that
such a waiver would be possible. The Office of Consumer Affairs
has no interest in imposing excessive financial obligation upon
any businessman. The motivation of the office has been and
remains to provide essential protection to the homeowner. The
insurance requirements of the ordinance have previously been
� modified to conform with requirements of other city licenses.
The ordinance requires no fee for registration with the Office
� of Consumer Affairs. The only additional cost to a building
� contract�ce�bondSeunlessrhetalready haslsuch ahbondsas�a condi-
$ perf orman
t tion of another license.
°k IInder the ordinance as presently written, all of the key ele-
,�
�; ments of consumer protection are specifically tied to t e
� requirement for a building contractor' s licen�e. These pro-
� " - -- "- tections include the requirement that the contractor have a _ ___. ___ —_
� performance bond against which the homeowner has recourse; that
�� he carry liability and property damage insurance; that as a
�; part of the license application pracedure the cnntractor register
;� with the Office of Consumer Affairs, and; that the Office of
��� Consumer Affairs forward its recommendations to the License
`"� Committee.
>;
� Further, and of primary importance, the ordin.ance states that
T - failure to comply with all of its provisions shall constitute
grounds for refusal, suspension, revocation, or rafusal to
� renew the license. The inclusion of this penalty is, in the
'`�; final analysis, the homeowner' s strongest protection under the
ordinance.
A possible second means for providing full consumex protection
Y under tY:is ardinance, vah�ch we believe to be less desirable,
� ` - � " '"'would be ta retain the present amendment but to further amend
� the ordinance so as ta require that building contractors licensed
under other law must also register with the Office of Consumer
Affairs and provide proof of bond and insurance as required in
� the ordinance. The ordinance should then also state that the
Office of Consumer Affairs may make licensing recommendations
to any city authority through which licenses are granted and
� that the Prohibited Acts section applies to all building
contractors, whether or not licensed under this ordinance.
This course would require substantially more amendm�nt to the
ordinance as presently written.
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Paae 4
October 1, 1974
Council President and N,e.ynbers
of the City Council
I ask that this letter and the accompanying statistical mate-
rial be entered into the Council recor�o discussnthis material
proposed Qrdinance. I shall be happy resent
with any member of the Council, and I anticipate being p
at the October 2nd reading of the vrdinance to make a brief
statement and to answer any further questions.
Very truly yours,
�4",,i,,,,,�,�., C.9 .
! CONNIE GREEN
Ac:ting Director
CG:cs
Enclosure - _ _._ _ _ _ _ _ _ _ __ __ _ _ ____ _
cc: Mayor Lawrence D. Cohen
Ms . Rose Mix, City Clerlc
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. '� • COMPLAINT ANALYSIS - BUILDING CONTRACTORS 4-" ����
� • v "
A
• e
EXCLUDED BY
TOTAL AMENDMENT $ EXCLUDED
Number of
Camalaints 113 5Q 44. 2�
Itimount of Contract
ar Dis ute $114,718. 84 $31,786. 95 27 •7�
�v�r�c�e Dispute $ 1,015. 2T $ 635.73 62. 6�
� Settlements* 55 ?_5 45. 5�
Tc�tal Amaunts of
Settlements $ 19,478. 20 $ 6,387.76 32 • $�
Average �lmount of
Settlements $ 354.15 $ 255. 51 72.1� '
Average Length of
: Investigation (months) 2. 27 2. 7 11. 9�]�onger
*Contracted work completed or monetary adjustment
�
TYPE OF COMPANY NO. OF COMPLAINTS � OF TOTAL
� � General Contractors 23 21.23
a
:;F Sidi.ng 8 ' '7. p'7 .
_ � Painting 4 3 .53
Roofing 12 10.61
Gutters 4 3 .53
Fences 1 . gg
Garages • 7 6.19
- *�lectricians 3 2 .65
.`i *Plumbers 9 7.96
*Cement ar IIituminous
___.. .. . __ .;: ,.
. _ ._ Contractors ._ 19 - _ 16. 81
*Air Conditioning 2 1.76
*Furnaces 7 6.19
. *Carpets 13 11. 50
*Would be excludea by amendment.
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Yeas Nays
CHRISTENSEN
HoZ� � 2641'73
� ��
ROEDLER �
SYLVESTER
�
PRESIDENT (HUNT) �