Due to the health of the state’s Contractor Recovery Fund, effective July 1 the Minnesota Department of Labor & Industry (DLI) eliminated the $80 assessment that licensed residential building contractors pay as part of their two-year license.
The Contractor Recovery Fund compensates homeowners and lessees of residential property, up to $75,000, who have experienced direct out-of-pocket losses because of a Minnesota licensed contractor’s fraudulent, deceptive or dishonest practices.
The fund’s balance has stabilized over recent years as the state’s housing market has recovered and fund payouts have decreased accordingly.
With fewer funds withdrawn, DLI Commissioner Ken Pederson used his authority to eliminate this assessment. This is in addition to the DLI reducing most license fees by 40 percent over the past four years.