|The Contractor Association of MN (CAM) submitted comments supporting bills authored by Senator Justin Eichorn (Bemidji) and Rep. Shane Mekeland (Clear Lake). The bill prevents the use of any funds from the Contractor Recover Fund except for its intended use by providing clarifying language. The Contractor Recovery Fund is allowed for the following:
(1) compensate owners or lessees of residential real estate who meet the requirements
of this section;
(2) reimburse the department for all legal and administrative expenses, disbursements,
and costs, including staffing costs, incurred in administering and defending the fund;
(3) pay for educational or research projects in the field of residential contracting to
further the purposes of sections 326B.801 to 326B.825; and
(4) provide information to the public on residential contracting issues.
You can read the letter submitted by CAM below.
Date: March 8th, 2021
Rep. Shane Mekeland
215 State Office Building
St. Paul, MN 55155
Dear Rep. Mekeland:
On behalf of the Contractor!s Association of Minnesota, we are writing to express our support
for HF 762.
This bill will ensure that funds licensed contractors must, by statute, pay into the Contractor
Recovery Fund will not be allowed to be used for other purposes. In lean years, the fund has
been raided to cover other funding shortfalls.
Minnesota Statues 327A is a statutory requirement known as the “home warranty” provision.
This statutory requirement states that homeowners building new homes or remodeling their
homes are protected from structural issues. For example, if a homeowner builds a new home
and there are structural issues, the Contractor Recovery Account will ensure that a contractor
who is unable to fulfill their statutory obligations will make the homeowner whole when repairs
are made. HF 762 protects the Contractor Recovery Fund from being used for anything other than
protecting homeowners and making sure that these funds are available to the homeowner.
Chairperson – Contractors Association of Minnesota