Nebraska to Minnesota: residential contractor license reciprocity

1. 1Trade exam. Pass the destination's trade exam. Minnesota qualifying builder (QB) exam for a Residential Building Contractor license, or qualifying remodeler (QC) exam for a Residential Remodeler license, taken by the qualifying person at DLI's St. Paul offices or an outstate location. It is 110 multiple choice questions in five and a half hours, and 70 percent is a pass. Roughly 60 percent of the questions come from the Minnesota Residential Building Code and the rest from the statutes and rules governing residential contracting. Candidates are given two reference books in the exam room, the Minnesota State Residential Code 2020 edition and DLI's Reference Manual. The QB exam is also offered in Spanish on request. Results are mailed within two weeks; a failed candidate waits 30 days before reapplying..
2. 2Exam fee. Pay the exam fee ($50). Examination application fee of $50, printed on DLI's exam application form and set by Minn. Stat. 326B.092, subd. 1. It is separate from the license fee, is nonrefundable, and is charged again for each retake..
3. 3License fee. Pay the license or certificate fee ($180). Base license fee of $180 for the two-year license. A residential contractor, remodeler or roofer license is a business license for fee purposes under Minn. Stat. 326B.815, and licenses expire on March 31 two years after the application year. The fee is due after the qualifying person passes the exam and before the license is issued, and it is nonrefundable..
4. 4Other. Contractor Recovery Fund fee, paid on top of the license fee at application and at every renewal. It is scaled to the company's gross annual receipts from residential contracting in its most recent fiscal year: $320 under $1 million, $420 from $1 million to $5 million, and $520 over $5 million. The fund repays homeowners who hold a final judgment against a licensed contractor for fraudulent, deceptive or dishonest practices, conversion of funds or failure of performance, up to $100,000 per claimant and $550,000 per licensee. With the $180 base fee this makes a new license $500, $600 or $700 depending on the tier. If DLI pays a claim, the license is suspended until the contractor repays twice the amount plus interest and posts a surety bond of at least $40,000. ($320).
5. 5Insurance. Carry the required insurance. Commercial general liability insurance covering premises, operations, and products and completed operations, with limits of at least $100,000 per occurrence, $300,000 aggregate for bodily injury and $25,000 property damage, or a single limit of $300,000 per occurrence and $300,000 aggregate. The policy must be written by an insurer licensed in Minnesota, the certificate must be an agent-produced and agent-signed ACORD 25 or DLI form in the exact Secretary of State business name, and DLI must be named as certificate holder. Proof of compliance with Minnesota's workers' compensation law goes on a separate DLI-approved form. A certificate must stay on file with DLI; the insurer notifies DLI of any cancellation..
6. 6Business license. Obtain a business license. An active filing with the Minnesota Secretary of State, evidenced by a screen print of the Business Record Detail. It is required for every structure except an individual proprietorship or partnership trading under the full legal names of the individuals. The business may operate only under the exact name on that filing; any other trading name needs a separate assumed name (dba) filing, and that name must appear identically on the license application and the insurance certificate. The license cannot be issued or renewed while the filing is inactive, and a change of business structure means applying for a brand new license rather than renewing..
7. 7Other. A Minnesota registered agent, required of every out-of-state business except one based in a contiguous state (Iowa, Wisconsin, South Dakota or North Dakota). The application asks for the agent's name and Minnesota address, and signing it consents to service of process under Minn. Stat. 326B.855. Every applicant, resident or not, also consents to DLI itself acting as agent for service in proceedings under the residential contractor sections. The company must additionally give DLI a physical street address for the business and for the licensee; a post office box is not enough..
8. 8Background check. Complete a background check. Background disclosure form completed by every applicant as the statute defines that term, which reaches all affiliates, partners, directors, governors, officers, managers and anyone holding more than ten percent of the shares, membership interests or voting power, plus employees exercising management or policy control over the Minnesota work. A separate criminal background check form and a Disclosure of Business Owners, Partners, Officers and Members form are filed with the application, and every "yes" answer needs a written explanation..
9. 9Continuing education. Complete continuing education. 14 hours of DLI-approved continuing education per two-year period, completed by the qualifying person, with at least one hour on the Energy Code and at least one hour on business management strategies. The Q registration renews automatically once the hours are recorded, and the company's license cannot be renewed while the qualifying person's Q registration is inactive. The two expiration dates are often different. A Q registration left inactive for more than two years means retaking the license exam; under two years, the hours alone restore it..
10. 10Surety bond. Post a surety bond (if applicable). No surety bond is required of a Residential Building Contractor or Residential Remodeler. DLI states plainly that the Contractor Recovery Fund replaces bonding requirements, and Minn. Stat. 326B.86 requires a bond only from a Residential Roofer, at a penal sum of at least $15,000, and from a manufactured home installer, at $2,500. A bond of at least $40,000 becomes necessary only to reinstate a license after the recovery fund has paid a claim..

Published fees on this path total $230, excluding exam-vendor fees, bonds, and insurance.