builders' digest

87
THIS ISSUE SPONSORED BY: THE MAGAZINE FOR BATC MEMBERS JULY - SEPT 2013 INDOOR SPRINKLERS S T R E E T IMPROVEMENT PARK FEE S DESIGN PROFESSIONAL LICENSURE R A D O N AWARENESS STATUTE OF REPOSE INDEMNIFI CATION EXTEND PRODUCT STEWARDSHIP PAINT TAX BILL 2013 LEGISLATIVE SESSION REVIEW INSIDE SPECIAL SECTION

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Member publication of the Builders Association of the Twin Cities

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  • THIS ISSUE SPONSORED BY:

    THE MAGAZ I NE FOR BATC MEMBERS

    JULY - SEPT 2013

    H O M EI N D O O RSPRINKLERSS T R E E TIMPROVEMENTPARK F EE SD E S I G NPROFESSIONALL I C E N S U R ER A D O NAWARENESSSTATUTE OFR E P O S EI NDEMN I F IC A T I O NE X T E N DP R O D U C TSTEWARDSHIPPAINT TAX BILL

    2013LEGISLATIVESESSIONREVIEW

    INSIDE

    SPECIALSECTION

  • CHEVROLET BUSINESS ELITE DEALERS

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    To find out what a Chevrolet Business Elite Dealer can do for your business,

    call or contact one of our experts.

    when it needs it from sales right through to service.

    WALSER CHEVROLETScott Miller

    (866) [email protected]

    JEFF BELZER CHEVROLETGeorge Miller

    (952) [email protected]

    FRIENDLY CHEVROLETHowie Lee

    (763) [email protected]

    LUTHER BROOKDALE CHEVROLETKristal Bechtold

    [email protected]

    MERIT CHEVROLETRon Hogan

    [email protected]

    SUBURBAN CHEVROLETDarin Trees

    [email protected]

  • 0DSOH*URYH&RRQ5DSLGV$SSOH9DOOH\(GLQD6W3DXO:RRGEXU\0SOV2XWOHW5RFKHVWHU

    For over 50 years our family business has been powered by sons and daughters. And now, with the installation of more than 400 solar panels and reflectors on the roof of our Saint Paul headquarters, were benefiting from a good deal of SUN power. In fact, up to 20% of our electricity now comes from Mother Nature. This brings us nice, warm feelings.

    Rest assured that Minnesotas appliance specialists now recycle all packaging and replaced appliances responsibly to help ensure a brighter tomorrow for future sons and daughters.

    now greener than ever

    a Minnesota family-owned business

    &DOOXVWRGD\IRUVSHFLDOSULFLQJDQGILQDQFLQJ(651) 726-1697 or warnersstellian.com/trade-partners

  • 4 Executive DirectorLetter

    6 A Word From OurPresident

    8 News

    10 Events Calendar

    12 COMPANY PROFILE:Gerhards

    14 Remodelers Corner

    18 BATC Board Q&A

    24 PROFILE:Housing First Chair, Bill Burgess

    62 Parade of HomesSM

    64 Welcome NewMembers

    66 Member Spike

    69 Get Smart AboutYour InsuranceRisk Compliance

    74 BATC Foundation

    78 MN Green Path

    82 Member News

    NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG JULY/SEPTEMBER 2013 BUILDERS DIGEST 3

    Advertising DirectoryAndersen Windows . . . . . . . . . . . . . . . . . . . . . . . .2, 3Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . .71Brock White Company . . . . . . . . . . . . . . . . . . . . . . .81Brush Masters . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10CenterPoint Energy . . . . . . . . . . . . . . . . . . . . . . . . .73Corporate 4 Insurance Agency Inc. . . . . . . . . . . . . .69ECCO Midwest, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .15Erosion Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61Friendly Chevrolet . . . . . . . . . . . . .Inside Front CoverHedberg Landscape & Masonry Supplies . . . . . . .19IDC-Automatic . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11In-Focus Systems . . . . . . . . . . . . . .Inside Back CoverInstalled Building Solutions . . . . . . . . . . . . . . . . . .77J.B. O'Meara Company . . . . . . . . . . . . . . . . . . . . . .75JL Schwieters Bldg. Supply/Const., Inc. . . . . . . . . .8J&W Asphalt, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .70James Hardie Building Products . . . . . . . . . . . . . .84Jeff Belzers Chevrolet . . . . . . . . . .Inside Front CoverLake Elmo Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . .65Lampert Lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

    Luther Brookdale Chevrolet . . . . .Inside Front CoverLyman Lumber Co. . . . . . . . . . . . . . . . . . . . . . . . . . .23Marvin Windows and Doors . . . . . . . . . . . . . . . . . . .7Merit Chevrolet . . . . . . . . . . . . . . .Inside Front CoverMinnesota Department of Health . . . . . . . . . . . . . .5Molin Concrete Products Company . . . . . . . . . . . .65NAHB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61Orion Home Systems . . . . . . . . . . . . . . . . . . . . . . . .81ProBuild . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Residential Warranty Company, LLC . . . . . . . . . . .65Schwieters Companies, Inc. . . . . . . . . . . . . . . . . . .67Shaw/Stewart Lumber Co. . . . . . . . . . . . . . . . . . . .83Southview Design . . . . . . . . . . . . . . . . . . . . . . . . . .63Stein Insurance Agency . . . . . . . . . . . . . . . . . . . . . .83Suburban Chevrolet . . . . . . . . . . . .Inside Front CoverSynergy Products, LLC . . . . . . . . . . . . . . . .Back CoverThermo-Tech Windows, Inc. . . . . . . . . . . . . . . . . . .79Trimpac, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61Walser Chevrolet . . . . . . . . . . . . . .Inside Front CoverWarners' Stellian Co., Inc. . . . . . . . . . . . . . . . . . . . . .1Wells Fargo Home Mortgage . . . . . . . . . . . . . . . . . .9

    table ofcontents

    BATC 2013 President,Pamela Belz, Senior HousingPartners, looks perfectly athome in DC as she heads into a meeting with ThirdDistrict Representative ErikPaulsen.

    2013 LEGISLATIVESESSION REVIEW

    SPECIAL SECTION: PAGES 25-60

    on the cover

  • WE HID IT.A nail is hidden somewhere inevery issue of the Builders Digest, including the oneyoure holding right now.

    It could be anywhere tuckedinto a photo or stuck in a draw-ing in a margin in the textbody even used as an excla-mation point at the end of aheadline. It resembles a real-lifenail and looks something likethis

    The nail above is just an example it is not the real one hidden forthis issues contest. Weve con-cealed the real one elsewhere inthis issue, and it could be a dif-ferent color or size. Keep in

    mind, the SpikeClub logos

    nail doesnotcount.Whenmem-bers

    find thenail, they

    can email orfax a note to the Builders Associ-ation of the Twin Cities, tellingwhat page its on. Participantswill be entered into a drawing towin a business-card size ad in thispublication or a set of memberlabels (non-electronic version).All other entries receive $20 inBATC Bucks. Entries must be re-ceived by August 15, 2013.

    Found the nail? Email the pagenumber of your guess to [email protected].

    Or, mail or fax to: BATC NailHunt, 2960 Centre Pointe Dr., Roseville, MN 55113Fax: 651.697.7575.

    FINDTHIS

    4 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    || EXECUTIVE DIRECTOR LETTER

    Found It.Charlie Bradburn,

    Automated Building Components

    found the nail on page 52 of the April-June 2013

    issue of theBuilders Digest

    ITS A GAME CHANGER

    When a single event ordecision has far-reachingand powerful implications,we call it a game changer.Though the phrase hasbecome clich, the world ofenergy efficiency and greencertification in Minnesotatruly experienced a gamechanger in early June whenthe NorthStarMLS went livewith two new fields allowingfor a Home Energy RatingSystem (HERS) score andgreen certification identifica-tion. The decision byNorthStarMLS was the resultof outreach by BATC, andsuggests a bright future forBATCs Green Path Programand our Home PerformanceReport (HPR).

    We want to express ourstrong thanks and apprecia-tion to John Mosey, CEO ofthe NorthStarMLS, his Boardof Directors, his staff team,and the Realtor Associationsfor their support in this neweffort to provide consumerswith valuable informationabout the performance oftheir new or newly remod-eled home. On the BATCside, recognition is due toour Green Path Committee,our Public Policy DirectorJames Vagle, who spearheadsour Green Path program,Dawnita Parmely, our Cre-ative Services Director whodesigned our HPR andWendy Danks, our Market-ing and CommunicationsDirector, who has integrated

    Green Path deeply into ourParade of HomesSM andRemodelers Showcase.

    BATC has been engagedin the green building spacefor some five years, the lasttwo with the Green Path pro-gram, and recognition onNorthStarMLS of HERS andgreen certification has longbeen sought. NorthStarMLSis one of the largest MLSservices in the country andits acknowledgement of thegreen space in housing trulyis a game changer in thelegitimacy it provides togreen building programs andthe data that we can minefrom MLS regardingconsumer behavior. In othermarkets in which the MLSdenotes green certification,certified homes tend to sellfaster and at a premium. Thisalso positions our market toreach the Millennial buyer,which research shows has apreference for energyefficient and sustainablehousing.

    If you are not yet familiarwith our Green Pathprogram, now is the time toconsider putting the homesyou build on the Green Paththrough energy tested oradvanced and master certifi-cation options. Its one clearway to demonstrate to yourcustomers the benefits ofnew and newly remodeledhomes against existing hous-ing stock. In fact, we thinkits a game changer.

    David SiegelBATC Executive Director

    Read more aboutthe MN GreenPath/NorthstarMLSWinning Combination onpage 78.

  • To order a free radon resistant toolkit contact:Tom Standke - [email protected]

    Can you tell the difference? We Cant.

    Build to the Gold Standard for Radon Resistant New Construction so the new homes you build

    dont suck in radon*

    www.HEALTH.STATE.MN.US/GOLDSTANDARDwww.HEALTH.ST

    Does your house suck?

    This house sucks This house doesnt

    * Radon is a soil gas that causes lung cancer and 48% of Minnesota homes have radon levels above the federal action level.

  • 6 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    || A WORD FROM OUR PRESIDENT

    Fellow Members,We can breathe a sigh of relief at the closing ofthe legislative session. In short, it was brutal.Our teamJames Vagle, Pete Coyle, and JuliePerrus along with BAM, did a great job.

    Although we have some solid pro-housinglegislators who gave their best, the currentpolitical makeup of the House, Senate andGovernors office is not friendly enough tohousing. BATC played incredible defense andwas successful in defeating or revising initia-tives that would have harmed us all, such asexcessive park fees, new street improvementdistricts, mandatory radon testing, insuranceissues with sub-contractors, environmentalstewardship requirements for paint and finishproducts, and of course the mammoth pro-posal to tax B2B services like design, legal,payroll and real estate commissions. Andalthough banning the Home Indoor SprinklerSystem Mandate was broadly supported byboth parties, again this year the Governorpromised a veto.

    The next step for the sprinkler initiativewill be the Administrative Law Judge (ALJ)process, which will begin when the Depart-ment of Labor and Industry releases theSONAR (Statement of Need and Reasonable-ness) on the new codes sometime thissummer.

    This has been an extremely long and frus-trating journey. The Governor said to let theprocess work, but again and again this stops athis desk. The following provides a brief his-tory:

    Our legislature has twice passed a billbanning the mandate and twice the Gov-ernor vetoed. Language supported by BATC was twiceamended onto omnibus bills receivingbroad bi-partisan support, but under thethreat of a Governors veto, it wasremoved from both bills in conferencecommittee reconciliation. In the code development process theCode Advisory Committee twice voted noby large margins. 40 of 42 other states have banned themandate; only California has adopted in

    full. Minnesota is one of eight who stillhavent resolved this issue. The public overwhelmingly opposes theHome Indoor Sprinkler System Mandate forall homes in two surveys taken over thepast two years. At one point the Governor appeared tobe willing to discuss a compromise fromthe two sides, then the next day steppedaway. It would seem the process has workedand the people have spoken but the Gov-ernor has not heard.

    This unfortunately underscores the reasonthat political activity is an essential element ofadvocacy efforts. Advocacy = lobbying +research + legal action + political fundraising,and they are all equally importantcomponents. One element of political activityis participation in support of candidates forelection. BATCs Housing First independentexpenditure fund is a crucial element. I amhappy to say BATC has a blue ribbon team onHousing First. They are true champions of ourindustry and they are reaching out to others tocontribute. We are growing Housing First intoa major entity to support pro-housing candi-dates in this next election cycle. Our new duesstructure will ensure our advocacy effortsblossom, but contributions are needed toboost us in the coming election cycle.

    Other groups like environmental interests,nursing, realtors, and local governmentshave all exceeded housing in political pres-ence and fundraising activity. The auto dealersand liquor lobby have excelled in this fordecades. They are the first call legislatorsmake when legislative issues affecting theirinterests are considered.

    We want to always be the first call legisla-tors make when housing interests arise, notcities, fire chiefs and environmental groups.This will happen through our continued com-mitment to advocacy, partnership building,and our growing Housing First political activ-ity. Please watch for and support HousingFirst initiatives and functions.

    There is much to be done, back to work!

    Congratulations to our toplobbyist Peter Coyle andthe Larkin Hoffman TeamBATC has worked with Pete Coyle asour chief lobbyist for a number ofyears, so when we learned his firmwon the first ever Lobbyist of theYear at the fourth annual Leaders inPublic Policy Awards, we werethrilled. The Awards are sponsoredby Capitol Report and Politics in Minnesota, and recognize individualsand organizations that have madesignificant contributions toward Min-nesotas political, public policy orcivic environment during the 2013session. The honor recognizes thatLarkin Hoffmans lobbying team hadthe most successful year for theirclients at the Capitol in 2013.

    We are very proud of our team fromLarkin Hoffman, and wholeheartedlyconcur with their selection as toplobbyists. Thanks to their hard work,we were able to turn what couldhave been a disastrous legislativesession into one with a number ofsuccesses. Read more about that inour special Legislative Session Wrapinside this issue of Builders Digest.

    You can send your congratulations toPete and the team at [email protected].

    Pamela BelzSenior Housing Partners

    GOOD ON YOU

    WE CAN NOW BREATHE A SIGH OF RELIEF

  • MARVIN DES IGN GALLERY by Shaw/Stewart 645 Johnson St. NE

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    Minnesota and Wisconsin651-439-3138ABC-CLC.com

    Automated Building Components-Millwork DivisionChanhassen

    952-937-9060ABCMillwork.com

    Custom Millwork, Inc.2298 N 2nd St. North Saint Paul651-770-2356

    CustomMillworkInc.com

    Fullerton-The Builders Choice Ellsworth - 715-273-5032Glencoe - 320-864-5103Osceola - 715-294-2000Watertown - 952-955-2237

    FullertonLBR.com

    Lampert LumberApple Valley Lake ElmoNorth Branch RockfordNorthfi eld St Croix Falls

    651-695-3600LampertLumber.com

    Scherer Bros. Lumber Co. Arden HillsHopkinsShakopee

    952-938-2741SchererBros.com

    Spring Lake Park Lumber 8329 Central Ave. NE

    Minneapolis763-784-3062SLPLumber.com

    Visit your local Marvin dealer today for more information and to discuss solutions for your next project.

    2013 Marvin Windows and Doors. All rights reserved. Registered trademark of Marvin Windows and Doors. ENERGY STAR and the ENERGY STAR certifi cation mark are registered U.S. marks.

    Whether its remodeling or replacement, Marvin has a solution. The broadest range of products combined with the most energy e@ cient options available means theres no better partner for exceeding your clients needs. Its all part of four generations of innovation and craftsmanship backed by an unwavering commitment to service and support from local retailers. Get a closer look at our extraordinary range of replacement and remodeling options with our new, updated catalog. Only at pros.myMarvin.com/catalog

    3:23 PM

  • In June more than a dozen BATC membersjoined over 750 builders from across the nationin Washington D.C. for the annual National

    Association of HomeBuilders (NAHB) Leg-islative Conference.They were there to urgelawmakers to supportpolicies that will keepthe housing recoverymoving forward andincrease housing oppor-tunities for allAmericans. BATC mem-bers met with theelected officials and/or

    staff from all of our congressional and US Sen-ate offices, including strong BATC supporterRep. Eric Paulsen (R) from Minnesotas ThirdCongressional District.

    Accounting ManagerRon DeCoux

    Administrative &Membership Assistant

    Heather Litchy

    Advertising SalesKori MeewesBrad Meewes

    BATC FoundationExecutive Director

    Perri Graham

    CommunicationsCoordinatorKaty Ervin

    Director of Administrative

    ServicesMaxine Miller

    Director of Public Policy & MN Green Path

    Executive DirectorJames Vagle

    Education CoordinatorBeth Graham

    Marketing & Events Manager Nicole Coon

    Marketing AssistantChristina Martin

    Membership DirectorDeb Earl

    Public Policy Assistant

    Mary Schweich

    Receptionist Emily Petermann

    The BUILDERS DIGEST magazine is the officialpublication of the Builders Association of the TwinCities (BATC). The BUILDERS DIGEST is publishedand distributed four times per year to its membersand others associated with the building industry.

    Neither the advertisers, nor BATC, will be responsible or liable for misinformation,misprints, typographical errors, etc., herein contained. For advertising rates,resource file or address change information, contact BATC. Suggestions, ideas andletters are welcome. If circumstances require, BATC reserves the right to increase ordecrease the number of BUILDERS DIGEST issues published on an annual basis.

    Builders Association of the Twin Cities (BATC)2960 Centre Pointe Drive, Roseville, MN 55113-1182Phone: 651-697-1954 | batc.org | Fax: 651-697-7599 | paradeofhomes.org

    PresidentPamela Belz

    Senior Housing Partners

    Builder Vice President

    Shawn NelsonNew Spaces

    Associate Vice President

    Kerry MulcroneKerry & Co.

    Past Associate Vice President

    John ZirbesLyman Lumber Co.

    SecretaryDaryl Doehr

    Marvin Windows andDoors

    TreasurerChris ContrerasRyland Homes

    Immediate Past President

    Curt ChristensenLee Lyn Construction,

    LLC

    Past President Council

    RepresentativeDoug Nelson

    Retired

    EXECUTIVE BOARD

    BOARD OF DIRECTORS

    BATC RemodelersSMJolynn Johnson

    Crystal Kitchen Center,Inc.

    Large VolumeBuilders

    Marv McDarisPulte Homes ofMinnesota, LLC

    Membership Pattie Martin

    Glowing Hearth &Home

    Parade of HomesSMPaul Donnay

    Donnay Homes, Inc.

    Public Policy Jason McCarty

    Westwood Professional Services, Inc.

    Small VolumeBuilders

    Gary KraemerJohn Kraemer & Sons

    Inc.

    National DirectorsKathe Ostrom

    C.N. Ostrom & Son

    At-Large MemberTodd Polifka

    Brush Masters

    At-Large MemberBrett Remme

    In-Focus Systems

    Executive DirectorDavid Siegel

    Editor/Director of Marketing & CommunicationsWendy Danks

    Creative Services Director/Graphic DesignerDawnita Parmely

    Graphic DesignerLaurie Spartz

    Creative Services CoordinatorCasey Hafner

    8 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    Rebates Anyone?BAMs Member Rebate Program helpedBATC members earn $8,898.00 in 2012

    (averaging $988.66 each) justby completing easy (no receiptsrequired), quarterly onlineforms about purchased materi-

    als from 40 national manufacturers.

    Learn more online at hbarebates.com (click on theBAM link).

    BATC Open Golf TournamentFull, Dinner Spots RemainThe BATC Open Golf Tournament set for August 6 at Prestwick Golf Club is SOLDOUT, but the dinner-only option is still avail-able at just $45.Register at www.BATC.org

    ParadeofHomes.org Upgrades AvailableShowcase your company, products and serv-ices with photos, testimonials, videos andmore to the huge ParadeofHomes.org audi-ence. See page 22 for more details.

    Did you miss the BATC Golf Tournament?Dont fret, the BATC FOUNDATION GOLFTOURNAMENT is just around the corner.Registration is now open for the 1st AnnualFoundation Golf Tournament and its fillingfast! Dont golf? Come just for the social hourand dinner.

    Scheduled for Tuesday, September 24 atthe Legends Golf Club in Prior Lake. Recog-nized by Golf Digest as Best in State andTop 10 Best New Upscale Courses in Amer-ica, Legends is an 18-hole championshipgolf course nestled in a wooded, yet marshyarea on the border of Lakeville and PriorLake.

    This golf tournament will benefit yourvery own BATC Foundation! Come out, sup-port a great cause and have a greatafternoon of golf. Contest and Tee sponsor-ships are available.

    Questions? Contact Perri Graham, Exec-utive Director of the BATC Foundation [email protected] or (651)697-7563.

    Note: This is a BATC "BONUS BUCK" event, worth astaggering $100 (in BATC Bucks).

    ||NEWS

    BATC Members Climb Capitol Hill

  • Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. 2012 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS967538 3/13-6/13

    Realizing a newly built dreamOur menu of simplified new construction financing is built to help accommodate the needs of todays homebuyers. With a dedication to excellent customer service, we can help you find a program to meet your needs.

    Builder Best program Protect your interest rates while you build your homeTemporary monthly payment reductions Purchase a reduced monthly payment for the

    early years of your loanFHA nancing Down payments as low as 3.5% for qualified borrowersDownpayment Assistance Programs (DAPs), Mortgage Revenue Bond (BOND) and

    Mortgage Credit Certicate (MCC) Down payment and closing cost help, lower interest rates, and/or additional tax benefitsCondominium nancing Purchase and refinance programs for low- and high-rise

    condominiums, with high-rise (over four stories) financing available up to $2 millionCustom-Home Construction Financing program - Financing for the construction of a home,

    plus a variety of permanent end loan financing products, to serve your specific needs

    James FisherRegional Builder, Sales Manager 651-430-9930 [email protected]

    Call today for more information.

  • 10 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    || EVENTS

    UPCOMING

    Register at www.batc.org

    JULYBATC Boat CruiseHosted by BATCRemodelersSM CouncilJuly 18, 2013Bayside Grill on Lake Minnetonka

    Nothing says summer like a jauntaboard "The Queen of Excelsior."Register at www.batc.org

    July Member OrientationJuly 25, 2013BATC Board Room

    Whether you are a NEW memberor have been around 20+ years,stop by and see what BATC canoffer you and your company!Register at www.batc.org

    AUGUSTBATC Open Golf TournamentAugust 6, 2013Prestwick Golf Club, Woodbury

    Our day of balls, birdies andbuilders is SOLD OUT but dinnerreservations are still available.Register at www.batc.org

    SEPT.2013 SponsorshipLuncheonSeptember 10, 2013

    BATC Seminar Room

    Join us as we launch our 2014sponsorship opportunities andthank our 2013 sponsors overlunch.Register with Heather at 651-697-7573 or [email protected]

    BATC Clay ShootBrought to you by theYoung Professionals

    September 17, 2013Minnesota Horse & Hunt Club,Prior Lake

    BATC's first ever Clay Shoot. Fabulous prizes and buffet dinner.Register at www.batc.org

    BATC Foundation Golf TournamentSeptember 24, 2013Legends Golf Club

    The BATC Foundations first golftournament.A BATC Bonus Buck event!Register at www.batc.org

    OCT.Member OrientationOctober 15, 2013BATC Board Room

    Whether you are a NEW memberor have been around 20+ years,stop by and see what BATC canoffer you and your company!Register at www.batc.org

    Houzz EventOctober 15, 2013Earle Brown Heritage Center,Minneapolis

    Hear from Houzz directly how tobenefit from one of housingshottest sites.Watch for more info. soon.

    Awards of Excellence GalaOctober 24, 2013Lafayette Club

    Join us as we honor the best ofthe best in the homebuildingindustry.More info. at www.batc.org

    find it all at www.batc.org

  • 12 BUILDERS DIGEST JULY/SEPTEMBER 2013

    THE KITCHEN ANDBATH STORE

    ONCE-IN-A-LIFETIMEEXPERIENCE

    A D V E R T O R I A L

    Anyone in the business of designingquality kitchens and baths will knowthat a state-of-the-art showroom with

    quality products, expert staff and a stream-

    lined selection process can make a big

    difference. The staff at Gerhards: The

    Kitchen and Bath Store (formally Kitchen

    Craft) are expertly trained to handle every

    kitchen and bath need from start to finish so

    that the experience is truly one of a kind.

    Our on-site design team, big screen

    visualizing room and interactive display

    vignettes make every Gerhards experience

    easy and enjoyable. For many of our

    customers, remodeling or designing a

    kitchen or bath is a once in a lifetime experi-

    ence so we work hard to make every trip to

    our showroom an unforgettable one, said

    Gerhards Store Manager, Cindy Thomes.

    Our Parent Company, First Supply LLC,

  • ing showerheads

    and body sprays.

    It wont be long

    before

    customers start

    singing praises

    for the shower

    selections,

    including the tech

    savvy Kohler Moxie

    Showerhead + Wire-

    less Speaker system.

    This blue tooth device

    will deliver seven

    hours of wireless music

    into your showerhead,

    or remove it and you

    can take it on the go.

    In line with the

    companys focus on

    interactive displays,

    customers can visualize

    the look of their project

    on a 63-inch TV in the

    companys conference room.

    Gerhards has the ability to display

    any design concept on their big

    screen so that customers can

    really visualize the outcome, as

    well as manipulate dozens of

    design options.

    Stop by and see this beautiful

    showroom. You will be impressed.

    Gerhards is open Monday

    through Friday from 9-5, Thurs-

    days from 9-8 and Saturdays from

    10-2, or for your convenience, by

    appointment. Visit their Twin

    Cities location at 13540 Wayzata

    Boulevard in Minnetonka or one

    of their other twelve locations

    throughout the Midwest.

    13540 Wayzata Blvd.Minnetonka, MN 55305952.544.0458

    Mon-Fri 9am - 5pmSat 10am - 2pmSun Closed

    Right: The Gerhards conference roomfeatures an interactive 63 TV displaysystem so that customers can easily

    visualize their design options.

    Below: Shower vignette featuringdozens of working showerheads and

    body sprays from Gerhards' top brands

    located in Madison, Wisconsin, is

    a fifth generation family business.

    A solid track record and years of

    experience working with builders,

    remodelers, property managers,

    plumbers and the retail public has

    made the company a standout in

    their field.

    First Supply has made a huge

    commitment to the Twin Cities

    market with a 50,000-square-foot

    distribution center in South St

    Paul, along with one of the first

    independently owned Kohler

    stores in Edina, and now the

    purchase of the Gerhards show-

    room from Kitchen Craft last

    February in Minnetonka.

    The experienced staff at

    Gerhards will walk you through

    the selection process for kitchen

    cabinets, countertops and bath

    products with top brands such as

    Kohler, Delta and Moen to name a

    few. We sell tile, stone, hardware,

    lights and have an interior

    designer on our staff. We are a full

    service showroom that can facili-

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    remodeling or new construction

    project from start to finish. The

    stunning showroom, however,

    can speak for itself.

    Inside the 5,000 square foot

    Minnetonka location, customers

    will be impressed by six stunning

    cabinet displays, a wine room, five

    bath vignettes and custom enter-

    tainment unit. Most impressive,

    however, is the working shower

    vignette featuring dozens of work-

    NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG JULY/SEPTEMBER 2013 BUILDERS DIGEST 13

  • JOIN THE BATC REMODELERS COUNCIL as weshare remodeling tips and ideas in each issue in theBuilders Digest. Dont miss our roundtables inperson, either. Watch BATC.org for details on the OCTOBER 15TH REMODELERS ROUNDTABLE & HOUZZ EVENT

    || REMODELERS CORNER

    Spending on home improvement andremodeling projects got off to a slowstart this year, but that slowdown isntanticipated to last long. The LIRA(Leading Indicator of RemodelingActivity) from the Harvard Joint Cen-ter for Housing Studies expectsspending by homeowners on improve-ment projects to accelerate as the yearprogresses.

    On top of the almost 10 percentgrowth reflected in U.S. Census Bureaufigures for 2012, the LIRA projectsstrong gains in homeowner remodelingspending continuing throughout 2013,with some moderation in the pace ofgrowth toward the end of the year.

    Existing home sales were upalmost nine percent last year, andhouse prices are increasing in mostmarkets across the country, says EricS. Belsky, managing director ofHarvards Joint Center for Housing.This has increased the home equity

    levels for most homeowners, encourag-ing them to reinvest in their homes.

    NAHB also mentioned the down-turn in the May 9th Eye on theEconomy. They noted that the down-turn came on the heels of stronggrowth through most of 2012.

    Both the Joint Center and NAHBagreed on the probable culprit for theslip. One possible explanation forremodelings slow start is the generalchallenges faced by builders andremodelers from rising building mate-rial costs and the availability ofworkers, noted NAHB.

    The strong growth that weve seenrecently is putting pressure on the cur-rent capacity of the homeimprovement industry, says KermitBaker, director of the RemodelingFutures Program at the Joint Center.Contractors and subcontractors arehaving more difficulty finding skilledlabor, and building materials costs are

    unusually volatile for this stage of arecovery.

    While the national news is a bit ofa downer, the good news is that theJoint Center is anticipating a 20 per-cent increase in remodeling spendingby the end of 2013.

    The other good news is that BATCsremodelers are incredibly upbeat. TheParade of Homes Remodelers Show-case remodelers reported good springtraffic, with Jolynn Johnson, CrystalKitchen Center remarking it was thebest event in 18 years.

    What a fabulous showcase! Thetraffic was steady and people weregreat. We had many quality conversa-tions and great feedback. People seemeager to update their homes in 2013,said Becky Zweber, Novare Renovation& Design.

    The fall Remodelers Showcase isset for September 27-29. We hope tosee you all there.

    14 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    photogallery

    June Remodelers RoundtableJUNE 18, 2013 - Programmatic Media and DigitalTrends was the topic of the most recent Remod-elers Roundtable. Simply stated programmaticbuying is the automated pur-chase of data-driven, tar-geted ads. Attendeesreceived an overview ofhow their ads could be de-livered to specific usersbased on the users webbrowsing history.

    Sponsored by:

    1 2

    REMODELING PROJECTSPENDING PREDICTEDTO RISE

    June Remodelers Roundtable: 1. Star Tribune online gurus Tim Haley andMarie Ross (not shown) explained the newest developments in online target-ing. 2. First row (left to right:) Jolynn Johnson, Crystal Kitchen Center, Inc.;Samantha Grose, JP & Co.; Ron Sonnek, Sicora, Inc.; and Bryan Ogle, OgleConstruction, Maintenance, Services, Inc.; Second Row (left to right): Kim-berly Bednar, Brush Masters and James Julkowski, Julkowski, Inc.

  • www.EccoMidwest.com

    Asbestos

    Lead

    Mold

    Corporate Facilities

    Industrial / Warehouse

    Multi-Tenant Housing

    Federal, State, & Local

    Educational Institutions

    Hospitals / Medical Facilities

    Airports / D.O.T.

    Correctional Facilities

    Retail Establishments

    Residential

    Sales / Project Management

    Dave Sobaski$3OBASKI %CCO-IDWESTCOM Je Dahl*$AHL %CCO-IDWESTCOM

    Andy Hines!(INES %CCO-IDWESTCOMAdministration

    Jennifer Hilsgen*(ILSGEN %CCO-IDWESTCOM Brenda Dahl"$AHL %CCO-IDWESTCOM

    Warehouse

    Steve McMorrow7AREHOUSE %CCO-IDWESTCOM

    Licensed Bonded Insured

    arehouseWIndustrial /

    FacilitiesCorporate

    InstitutionsEducational

    & LocalFederal, State,

    HousingenantMulti-TTe

    FacilitiesCorrectional

    .Airports / D.O.T T.

    Medical FacilitiesHospitals /

    Sales / Project Management

    Sales / Project Management

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    Residential

    EstablishmentsRetail

    arehouseWWarehouse

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  • Dont be left on shore!

  • Q&A

    18 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    || BATC BOARD OF DIRECTORS

    JOLYNN JOHNSONCrystal Kitchen Center, Inc.BATC Remodelers CouncilChair

    GARY KRAEMERPresident, John Kraemer& Sons, Inc.Small Volume BuildersCommittee Chair

    Why did you become involvedwith BATC? JOLYNN: Crystal Kitchen Centerfirst became involved with BATCto be a part of the RemodelersShowcase. Weve since beenmembers of BATC for over 18years. I joined BATCs RemodelersCouncil around 2006. My philoso-phy is that if Im going to be apart of something I need to betruly involved, and not just sit onthe sidelines. By being a part ofthe Council, I get information thatI might not otherwise be aware offor a long time. I also get to helpmake the Council better.

    How has your BATC membership added value toyour business? JOLYNN:With the knowledgethat I obtain it helps me to beaware of what is happening (e.g.:lead laws) in the industry, whichalternately helps the bottomline. Being in the RemodelersShowcase helps find futureclients and the advantage of let-ting them see our work in anon-threatening environment.Getting to know other remodel-ers, builders and associates helpswith networking and developingfriends for life

    What about your job inspiresyou the most? JOLYNN:Working on a great/fundesign and making my clientshappy!

    Whats your favorite room inthe house to remodel? JOLYNN: Definitely the Kitchen!Ive been designing and remodel-ing kitchens for the past 30 yearsand I still find it exciting. No twopeople are the same and no twokitchens are the same, so itsalways fun.When it comes to

    remodeling or building new,why do you prefer remodel-ing?JOLYNN: Remodeling is green,there are more challenges, and ifyou start with really good bonesyou can make any space evenbetter.

    Name one thing thats on yourbucket list? JOLYNN: Retirement!!! Travelingwill always be something that Ilook forward to.

    What was the best adviceyouve ever received orgiven? JOLYNN: Nineteen years ago asthe new owner of CKC, Jeff Ham-mer, the owner of Crystal CabinetWorks in Princeton, told me youcant move mountains by your-self and its only money.Several years later I got to saythose same words back to him!

    Whats your favorite app? JOLYNN: Youre talking to some-one who is computer illiterate! Ihad to look at my iPad to evenanswer this question! On vaca-tion I use my currency app. On aday-to-day basis I enjoy theMahjong solitaire matchinggame. I couldnt live without myphone though. I just love being soconnected (well, most the timeanyway).

    Why did you first becomeinvolved with BATC? GARY: I have always beenimpressed with and appreciativeof the builders, associates andstaff members who devote somuch time and energy into mak-ing this one of the best tradeassociations in the state. Havingbeen involved in the buildingbusiness my entire life I feel thatit was time for me to give backand do my part to improve thisgreat industry. We joined BATC in1984 and have been a Memberevery year since.

    What is your role as Chair ofBATCs Small Volume BuildersCommittee? GARY: Like much of the work atBATC, the staff does most of theheavy lifting. I am there to runthe committee meetings and getfeedback and opinions from otherSmall Volume Builders withregard to every aspect of Associa-tion work and interaction. As amember of the BATC Board, I helpbring forward the opinions andagenda of the Small VolumeBuilders.

    How has your BATC membership added value toyour business? GARY: Everyone knows that thereis strength in numbers. We are inone of the most competitiveindustries on earth, yet by work-ing together through BATC,builders and associates have astrong voice at the State Capitol.We have the first and best Paradeof Homes in the nation, and wehave access to great continuingeducation. The list goes on andon. Our company gains a tremen-dous amount of added value andwill always be a part of BATC.

    What about your job inspiresyou the most?

    GARY: The interaction with peo-ple, and being part of a team! Ilove working closely with ourclients, associates, architects,interior designers and everyoneinvolved on our team. I coachedbaseball for the last 24 summersand I love leading and being partof a team that always gives theirbest and has a chance to win. Iam inspired to give my best everyday and never let my teammatesdown.

    Whats the biggest advantage of being a smallvolume builder? GARY: Having the time to get toknow and serve our great clients.Many of my good friends havebuilt or remodeled with us andmany clients that I did not knowbefore working with them havebecome good friends.

    What was the best adviceyouve ever received orgiven? GARY:Hard work beats talentwhen talent doesnt work hard! Ialso like Nothing beats fun for agood time.

    Name one thing thats on yourbucket list. GARY: I would love to go intoouter space and orbit the earth! Iwould also like to see the Vikingswin a Super Bowl, but that is alittle farther fetched.

    Whats the farthest placeyouve traveled to? GARY: So far it is Rome, Italy. Mywife and I love to travel and arehoping to see Australia and NewZealand some day.

    What one technological deviceyou couldnt live without? GARY:My iPhone! I had it surgi-cally attached to my hand and itwould be painful to remove!

  • 20 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    photogallery

    ReBuild Happy Hour

    ReBuild Happy Hour, hosted by Mingle: (from left to right, top to bottom) 1. Kelly Aitkin with Deb Earl, BATC 2. Adam Ohlgart, Creative Lighting, with Brett Remme, In-Focus Systems 3. Shelby Allen, Gary Insurancenter and Mark Searles, Admit One 4. KellyDavert (at right), Mingle, welcomed attendees and introduced panelists Mark Allen, David Siegel, Dan Peinovich, Camaron Wooleyand Casey Van Winkle 5. David Siegel, BATC 6. Panelists Casey Van Winkle and Mark Allen 7. YPs paid attention and asked a lot ofquestions 8. Just one of the cool vignettes at Mingle 9. Dan Peinovich and Cameron Wooley 10. This kitchen display showed offwhite cabinetry beautifully 11. Small-space laundry genius

    APRIL 9, 2013 - BATC's Young Professionals Committee and the Minneapolis AreaAssociation of Realtors' (MAAR) YoPro Group joined forces over happy hour at MingleCabinetry Furnishings Design to discuss the current marketplace and address what's to comefor both industries.

    Hosted at Minglesstunning showroom

    1

    4 6

    8 97

    5

    2 3

    Presented by:

    10 11

    Panel of Experts: David Siegel (BATC), Dan Peinovich (Bell Mortgage), Cameron Woolley (Ryland Homes), Mark Allen (MAAR), Casey Van Winkle (First Class Mortgage), and John Canny (RE/MAX Advantage Plus).

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    2011

    STATS

    JAN 1 - MAY 31

    VISITS191,000

    UNIQUE VISITS131,225

    PAGE VIEWS1.3 MILLION

    2012

    VISITS250,000

    UNIQUE VISITS172,000

    PAGE VIEWS1.4 MILLION

    2013

    VISITS198,187

    UNIQUE VISITS137,470

    PAGE VIEWS1 MILLION

    2011191,000

    VISITS

    TSAATSSTTA

    2011250,000

    VISITS

    2012191,000

    VISITS

    TS

    Y 31

    198,187VISITS

    2013250,000

    2012AN 1 - MA AY 31J

    1.3 MILLIONAG PPAGE VIEWS

    131,225UNIQUE VISITS

    VISITS

    1.4 MILLIONAGE VIEWSPPAGE VIEWS

    172,000UNIQUE VISITS

    VISITS

    1.3 MILLIONAGE VIEWS

    131,225UNIQUE VISITS

    VISITS

    1 MILLIONAGE VIEWSPPAGE VIEWS

    137,470UNIQUE VISITS

    VISITS

    1.4 MILLIONAGE VIEWS

    172,000UNIQUE VISITS

  • 24 BUILDERS DIGEST JULY/SEPTEMBER 2013 NEWS EVERYDAY ON THE BLOG: WWW.BATC.ORG/BLOG

    || PROFILE

    As division president forthe States largest homebuilding firm, Lennar, BillBurgess faces challenges andsucceeds in getting toughjobs done everyday. So whenoutgoing chair and 2013BATC President, Pamela Belzwas looking for the nextchair for Housing First, ourIndependent ExpenditureFund or Super PAC, Bill washer natural first choice. And,with a challenging electionyear ahead, we are all luckythat he said yes.

    Bill is stepping up at acritical time. He explains,there are enough outsideinterests wanting to influencehomebuilding and often in away thats not beneficial tothe industry. I think itsimportant for us to get organ-ized, to have a voice, and tobe able to do that, you haveto have a Super PAC. Wehave to be able to raise fundsto support legislators thatsupport us.

    The recent legislativesession presented numerouschallenges. Our lobbyistsplayed defense much of the

    session,successfullypushingback legisla-tion that issure to reap-pear nextyear (readmore in

    BATCs legislativewrap). While wewere pleased tobuild strong, bi-partisan support onthe indoor sprinklermandate issue inseveral cases helpedby the dollars weinvested on races in 2012 Governor Dayton was simplynot going to back down.

    Thats why, for theupcoming legislative cycle,we need to be even moreproactive, Bill insists. Weset an ambitious goal tosupport pro homebuildingcandidates in the House andalso in the gubernatorial raceto make an impact on theseraces. This means we proba-bly need to raise around$700,000.

    Now thats an aggressivegoal, he says. But, every-body that weve talked tofrom our Associate members,Remodelers, to our Small,Medium and Large VolumeBuilders everybody under-stands the situation were inas an industry. Were justbeginning to come out of thispast housing depression andwe cant afford to haveadverse legislation put in ourway that will negativelyimpact our recovery.

    The first step to reachingthat goal was to get buy infrom members and BATCsboard. We went to the BATC

    board with our plan, anddiscovered that they under-stand how important thiselection cycle is, agreeing to amatching fund up to$300,000, says Bill. I thinkwere well on the way. Theresa lot needed and we still needto raise a lot more funds, butI think everybody under-stands and is receptive to it.

    No one who knows Bill issurprised at the passion andeffort hes devoting to Hous-ing First. His success atLennar exemplifies the samequalities.

    Born and raised in Illi-nois, Bill attended NorthCentral College there andthen joined Chicago-basedCambridge Homes in theirpurchasing division. In 1997,Bill moved to Lundgren Bros.Construction (LBC), then thefourth largest homebuilder inthe Twin Cities, as their VicePresident of Purchasing.When US Home acquiredLBC, he took over purchas-

    ing for both Orrin Thompsonand LBC. Then in 2008, Billtook over as President ofLennar. Hes been able tokeep Lennar as the top-ranked builder in the regionevery year since.

    Bill is married to Ann andthey have four kids. Katie,the oldest at 32, is an entre-preneur in her own right,running her own insuranceagency. Shelby is 18 andheading to the University ofSouth Dakota to major inbusiness. The two youngest,Emily, 15, and Will, 12, arestill at home and keep thingsinteresting along with theirboxer Molly and adoptedfeline, Todd.

    Its clear that Bills familyis incredibly important tohim and a great supportsystem. But his final wordswere clearly to BATCmembers, Help support anddefend our industry, donateto Housing First!

    OUR SUPER PACS SUPER CHAIRMeet Bill BurgessHousing First Chair and President, Lennar

    Written by Wendy Danks

    I THINK ITSIMPORTANT FORUS TO GETORGANIZED, TOHAVE A VOICE,AND TO BE ABLETO DO THAT, YOUHAVE TO HAVE ASUPER PAC. WEHAVE TO BE ABLETO RAISE FUNDSTO SUPPORTLEGISLATORSTHAT SUPPORTUS.

    For more information onHousing First, contact James Vagle,Public Policy Directorat 651-697-7578.To donate, contactMary Schweich at651-697-7572.

  • H O M E I N D O O R SPRINKLERSSTREET IMPROVEMENT PARK FEESDESIGN PROFESSIONAL L I C ENSURRADON AWARENESS STATUTE OREPOSE INDEMNIFICATION EXTENDPRODUCT STEWARDSHIP PAINT TAX BIL

    2013 LEGISLATIVESESSION REVIEW

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 1

    The 2013 legislative session was a remarkable journey for BATC andour lobbying team. After the November elections we knew we wouldface unique challenges at the Capitol with the DFL leading theHouse, Senate and Governors Office for the first time in nearly 25years. Our lobbying teams primary goal was to work to reduce theregulatory footprint that has grown throughout our industry over thepast two decades, while blocking or moderating proposals that wouldadd even more regulations and costs.

    Perhaps not surprisingly, our team spent the vast majority of theirtime on the latter. The volume of proposals offered that our industryopposed was high. All of this was on top of our primary policy issue,prohibiting the mandate of home indoor sprinkler systems in singlefamily homes over 4,500 square feet.

    With that as the background, Im especially pleased to sharemuch good news in this legislative session review. Our team was ableto successfully stop, redirect and modify most of the proposals we op-posed. The disappointment of the session undoubtedly lies with thenear-miss we had in passing a sprinkler mandate prohibition into law. However, I am confident we did every-thing we could to pursue this legislative avenue to solve this issue. We are not giving up, however, and wewill continue to work through other options in opposition to a sprinkler system mandate.

    Finally, Id like to thank our team. Their task is ambitious and challenging, and Im pleased to join thisgroup of professionals from BATC and our affiliates at BAM in working to create a better regulatory envi-ronment for you and your business. As a BATC member, YOU are part of our advocacy team. BATCsBoard of Directors has made long-term, strategic investments in advocacy to ensure that we are able to suc-cessfully represent and protect our industrys interests. This recap details the major issues that BATCworked on this session. I hope you find it to be a useful and insightful member resource.

    Thank you for your support for BATC and our industry. Best regards,

    Pamela BelzSenior Housing Partners and 2013 BATC President

    ME S S AG E F ROM TH E

    PRESIDENT

  • 2 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 3

    SESSION OVERVIEW

    HOME INDOOR SPRINKLER MANDATE PROHIBITION -------------------------- 7

    STREET IMPROVEMENT DISTRICTS -------------------------------------------------------------- 9

    PARK FEES FAIR MARKET VALUE -------------------------------------------------------------- 11

    PARK FEES PARK FACILITIES FEE ---------------------------------------------------------------- 12

    DESIGN PROFESSIONALS LICENSURE ------------------------------------------------------ 13

    INDEMNIFICATION ------------------------------------------------------------------------------------------ 15

    RADON AWARENESS ACT ------------------------------------------------------------------------------ 17

    STATUTE OF REPOSE ---------------------------------------------------------------------------------------- 19

    EXTENDED PRODUCT STEWARDSHIP PAINT -------------------------------------- 21

    TAX BILL ---------------------------------------------------------------------------------------------------------------- 23

    APPENDICES

    A -------------------------------------------------------------- STATUTE OF REPOST - CHAPTER 21

    B ------------------------------------------ MN RADON AWARENESS ACT - CHAPTER 43

    C -------------------------------------- PARK FEES - FAIR MARKET VALUE - CHAPTER 85

    D -------------------------------------------------------------- INDEMNIFICATION - CHAPTER 88

    E ------------------------------------ PAINT STEWARDSHIP PROGRAM - CHAPTER 114

    TABLE OFCONTENTS

  • 4 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    The 2013 legislative session will be remembered for the strong re-emergence of the states DFL party, whichcontrolled both the Minnesota House and Senate as well as the Governors office for the first time in a gen-eration. Collectively, DFL leaders set out ambitious goals to bring structural, progressive changes to Min-nesotas budget and government services. The road to completion was hectic at times, with tax proposalscoming and going up to the final minutes of the session. But, in the end, the session came to an on-time andorderly conclusion with a host of historic changes.

    2013 Legislative Session by the numbers:Senate Bills Introduced: 1682House Bills Introduced: 1862Bills Presented to the Governor: 81Bills Signed by the Governor: 81Bills Vetoed by the Governor: 0

    For BATC members, the session was dominated by proposals that raised questions and concerns. The re-sults were mostly positive, although the sprinkler mandate discussion remains unresolved after three years ofhard work seeking a solution.

    BATCs legislative efforts occur in concert with our statewide federation partner, the Builders Associa-tion of Minnesota (BAM). We engage the services of Larkin Hoffman, one of the most highly respected lob-bying firms in the state. (In fact, Larkin Hoffman just received the first ever Lobbyist of the Year award fromthe Capitol Report and Politics in Minnesota). We also brought on board one of the areas best issue-ori-ented public relations firms, Himle Rapp, to provide exceptional messaging and other support this session aswe worked in opposition to the home indoor sprinkler system mandate. And of course, we engage you, ourmembers. Through a variety of communications and committees, you provide feedback, help us prioritize is-sues and tell our story to your legislators.

    Its our honor to represent our members at the Capitol and with regulatory agencies. Were fortunate tohave a strong mix of dedicated individuals with significant experience in the homebuilding and legislativearenas anchoring our legislative team. Read on for more about how the 2013 legislative session unfolded.

    13 LEGISLATIVESE S S ION REV I EW

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 5

    THE TEAM

    DAVID SIEGELBATC EXECUTIVE

    DIRECTOR

    JAMES VAGLEBATC PUBLIC

    POLICY DIRECTOR

    PETER COYLEATTORNEY &

    LOBBYIST, LARKINHOFFMAN

    JULIE PERRUSATTORNEY &

    LOBBYIST, LARKINHOFFMAN

    MARY SCHWEICHBATC PUBLIC

    POLICY ASSISTANT

    PAMELA BELZBATC PRESIDENT

    TODD RAPPHIMLE RAPP

    SUSIE BELLHIMLE RAPP

    JASON MCCARTYBATC PUBLIC POLICYCOMMITTEE CHAIR

    REMI STONEBAM EXECUTIVEVICE PRESIDENT

    LARRY REDMONDLOBBYIST, REDMOND

    & ASSOCIATES

    BRIAN HALLORANLOBBYIST, REDMOND

    & ASSOCIATES

  • 6 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    THE SPRINKLERI S SUE GALVAN I Z ED

    UNFORTUNATELY,THE GOVERNORTWICE BLOCKED

    THE OPPORTUN I T Y TO

    LEAVE SPRINKLERSAS A HOMEOWNER

    CHOICE

    OUR MEMBERSHIP

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 7

    Sprinkler Mandate ProhibitionBATC Position: Support Sprinkler Mandate Prohibition

    Outcome: Provision failed in Conference Committee twice; is now expected to be addressed at theAdministrative Law Judge level later in 2013

    ISSUE BACKGROUND:

    BATCs top priority in the session was the removal of the home indoor sprinkler system mandate currentlyin the draft Minnesota building code. This mandate would require sprinkler systems in all homes 4,500square feet (includes finished/unfinished basements) and above. In 2011 and 2012, BATC & BAM success-fully advanced bills through the legislature to remove the mandate. However, both bills were vetoed by Gov-ernor Dayton.

    The home indoor sprinkler system mandate as proposed in the code would increase the cost of a newfour-bedroom, three-bathroom home by $9,000. If the home uses private well water, as many communitiesin the Twin Cities do, the costs can range from $15,000 to $20,000 once water pump and well improve-ments are considered. This cost does not include annual maintenance, higher property taxes, or the cost ifthe home indoor sprinkler system were to malfunction.

    2013 ACTIVITY:

    Early in the session, BATCs lobbying team focused its efforts on education. We worked to explain the im-portance of ensuring that home sprinklers are a choice, not a mandate to newly elected legislators. We ex-pected this issue to re-emerge prominently near the end of session, which it did. In late April, theMinnesota Senate adopted an amendment authored by Sen. David Senjem (R-Rochester) to the omnibusEconomic Development bill authored by Senator David Tomassoni (DFL-Chisholm) to remove the sprin-kler mandate from the forthcoming building code. The vote was an impressive 47-17 in favor of the amend-ment. We were heartened by this strong bipartisan vote, but the headwinds in Conference Committee wereagainst us, and the sprinkler mandate prohibition did not make it into the final committee report. While wehad strong Senate support, the House rejected our position, citing a potential veto of the entire omnibus billfrom Governor Dayton if the sprinkler language was included.

    In the final days of the session, Sen. Senjem again successfully amended the sprinkler mandate prohibi-tion language onto the omnibus Game and Fish bill. That language was also removed in Conference Com-mittee reconciliation.

    BATC members deserve a special mention for their exceptional work in making our case and buildingmomentum for our story. A growing, bipartisan super-majority of the legislature agrees with our core mes-sage: we build exceptionally safe homes, and while some regulation is necessary, this particular regulation isgovernment overreach that the public solidly opposes.

    Looking ahead, we will continue to look for any avenues to address this issue through the administrativelaw judge process, and in future legislative sessions.

  • 8 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    STREET IMPROVEMENT DISTRICTS

    CREATE A NEW MECHANISM FORLOCAL GOVERNMENTS

    WE SUCCESSFULLYNEGOTIATED A CARVE OUT

    FOR NEW HOMES

    TO COLLECT DOLLARSFOR STREET MAINTENANCE

    BATC MEMBERS ALREADY PAY

    STREET FEESAT THE TIME OF DEVELOPMENT

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 9

    Street Improvement Districts(HF 745/SF 607)

    Senate Author: Senator Jim Carlson (DFL-Eagan)

    House Author: Representative Ron Erhardt (DFL-Edina)

    BATC Position: Oppose original bill; neutral following BATC amendment adoption

    Outcome: Provision failed in omnibus Tax and omnibus Transportation bills

    ISSUE BACKGROUND:

    Proposed by the League of MN Cities for the past decade in an effort to create another tool for local govern-ments to raise revenue for street improvements, the initiative allowed cities to create districts in which theycan collect fees from new and existing properties. The fees must be connected to a streets improvementplan, but unlike existing special assessment authority the fee is not subject to the benefits test to ensure it isproportionate for the property value increase associated with the infrastructure improvement.

    2013 ACTIVITY:

    BATC objected to the proposal because new development already pays for street improvements and otherinfrastructure related to our projects. These are ultimately rolled into the lot costs, and we shouldnt have topay twice.

    Prior to the committee deadline we successfully negotiated an amendment that exempts new develop-ment from street improvement districts for three years following the development of the project. The lan-guage specifically exempts unoccupied parcels which covers model and spec homes.

    This issue is a top priority for local government groups who feel that this would be a more cost-effectiveway to maintain roads and infrastructure. The resistance was especially strong from a diverse coalition ofbusiness, higher education, religious and non-profit groups who claimed that this was a duplicative propertytax, essentially an end-run on the benefits test required for assessments today.

    The issue was vetted at multiple stops and bounced between the omnibus Tax and omnibus Transporta-tion Finance bills. In the end, there was not sufficient support among DFL conferees to support the bill andit failed to pass into law. However, looking ahead, it is very likely that this bill will pick up where it left off inthe 2014 session.

  • 10 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    PARKSWEVE ALWAYS AGREED THAT THEYARE AN IMPORTANT AMENIT Y

    BATCS INFLUENCEHELPED ENSURETHAT PARK FEES ARE FAIRLY PRICED

    BUT FEES MUST

    BE FAIR&

    NOT A CASH COWFOR LOCAL GOVERNMENTS

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 11

    Minneapolis Park Dedication Fee Fair Market Value(HF 321/SF 99)

    Senate Author: Senator Scott Dibble (DFL-Minneapolis)

    House Author: Representative Frank Hornstein (DFL-Minneapolis)

    BATC Position: Support Fair Market Value Provisions

    Outcome: Provision passed in the Economic Development omnibus bill and was signed into law asChapter 85

    ISSUE BACKGROUND:

    The City of Minneapolis has long sought specific authority to charge a park dedication fee on new commer-cial and residential development, but there was lingering uncertainty as to how the fee could be adminis-tered. The proposal required a nexus between the development paying the fee and the park creation andimprovement. The city also capped the park dedication fee at $1,500, placing it among the lowest in themetro area. Additionally, this bill was amended to include BATCs fair market value provision.

    2013 ACTIVITY:

    In discussions with Minneapolis Park Board representatives and the League of MN Cities, we were able torevive our park dedication fair-market value language from 2012 as an amendment. That language creates apathway to fairer, more accurate park fees by clarifying a process for negotiation between the developer andthe city for park fee rates. If that outcome is unsatisfactory, the developer can request a third-party ap-praisal. Park fees are unreasonably high in many cities because the high-point land values are used as thebasis for the fee. The fair market language would allow for an adjustment of the fees based on actual landvalues today.

    The House passed the bill which included our fair market value language. The Senate struggled to passthe bill as a stand-alone in the floor debate, so the bill was moved to the omnibus Economic DevelopmentFinance bill where both the minneapolis park fee and the fair market value provisions were passed as part ofthe larger measure.

  • 12 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    Park Facilities Fee(HF 511/SF 606)

    Senate Author: Senator Alice Johnson (DFL-Blaine)

    House Author: Representative Jerry Newton (DFL-Coon Rapids)

    BATC Position: Opposed to the bill

    Outcome: Provision stalled and was not brought forth for a hearing

    ISSUE BACKGROUND:

    This bill would create a new authority for local governments to raise revenue for parks in the form of a parkfacilities fee, which would be tacked on to annual property taxes. The city council would have to create aplan and fee schedule via ordinance and public hearing, but the park facilities fee would create a dedicatedrevenue stream for park creation very similar to the street improvement concept favored by cities.

    2013 ACTIVITY:

    In a moment of dj vu for our lobbying team, this bill mimicked the street improvements initiative in thatit was another duplicative regulatory tool for local governments to extract funds from new developments.As homebuilders, we already pay park fees at the time of development or building permit. Its unfair to dou-ble-tax new development for parks. After being scheduled for hearing in the House Government Opera-tions Committee twice, the bill was removed from consideration for the 2013 legislative session.

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 13

    Design Professionals Bill(HF 1052)

    Senate Author: Senator Jim Carlson (DFL-Eagan)

    House Author: Representative Debra Hilstrom (DFL-Brooklyn Center)

    BATC Position: Monitoring, pending clarification on remodeling industry impact

    Outcome: Bill laid over in committee; likely to come back in 2014

    ISSUE BACKGROUND:

    The long-time controversial design licensing bill appeared late in the 2013 committee season in an informa-tional hearing in the House Commerce Committee. BATC monitors this issue closely as there has been sig-nificant concern about the impact of this bill on our remodeling and design members. Major concernsinclude hindering our members ability to perform services in connection with the planning or design of in-terior spaces, preparation of documents relative to non-load bearing interior construction, programming,space planning, finishes, furniture, fixtures and equipment except in one- and two-family dwellings and lim-ited decorating consultation.

    2013 ACTIVITY:

    House Commerce Committee Chair Rep. Joe Atkins DFL-Inver Grove Heights introduced this as an issuethat will not disappear and an informational hearing was held to discuss the issue of licensed interior de-

    CONCERN ABOUTTHE IMPACT OFINTERIOR DESIGNLICENSURETHIS BILL WAS HEARD BUTDID NOT MOVE THIS SESSION

    WE CONTINUE TO ENGAGE

  • 14 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    sign (HF 1052). The chief author of the bill in the House, Rep. Debra Hilstrom DFL, Brooklyn Centerbegan the hearing by emphasizing the exemptions from the bill where interior design licensure would notapply or restrict:

    Architects, landscape architects, and engineers; Retail consultants for finishes, furnishings or cabinetry on behalf of a retailer; Salesperson selling surface materials, window treatments, displays, etc.; Residential designers, including kitchen or bath designer working within interior exempt spaces.

    Concerns against the licensure proposal focused on general opposition to the occupational licensure as a re-strictive measure that limits professional opportunities, noting that just three states currently license interiordesigners. No amendments were offered and no votes were taken during the hearing, which means this willnot become law in 2013. Rep. Hilstrom closed the informational hearing by stating the requirements ofthis bill pertain to licensed interior designers and not the broader interior design profession. Its been recog-nized for over 21 years in Minnesota that interior design of non-exempt spaces does affect the health, safetyand welfare of the public and its time to change this to a licensed practice.

    BATC has shared our interest and concern regarding the potentially negative impacts that this bill couldhave on our industry with proponents of the legislation. These legislators have expressed a willingness towork with us to find common ground as this issue moves forward next session.

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 15

    Indemnification/Risk Transfer(HF 644/SF 561)

    Senate Author: Senator Vicki Jensen (DFL-Owatonna)

    House Author: Representative Joe Atkins (DFL-Inver Grove Heights)

    BATC Position: Neutral on final bill

    Outcome: Provision passed and was signed into law as Chapter 88

    ISSUE BACKGROUND:

    As introduced, this bill attempted to change construction contract indemnification and insurance clauses bymaking them void and unenforceable. The MN Subcontractors Association began the session by pressingfor a blanket prohibition on these provisions.

    2013 ACTION:

    As introduced, this initiative had the potential to upset the long-established methodology by which thehomebuilding industry and the insurance industry have been operating. The bill moved through the com-mittee process and attracted significant opposition from commercial contractors and local governments whoserve as general contractors on municipal projects.

    At the heart of the debate was a discussion about individual company responsibility and the concernthat sub-contractors are vulnerable to being held liable for the mistakes and claims made against the gen-

    DEBATE ABOUT HOW GENERAL CONTRACTORS &THEIR SUB-CONTRACTORS AND TRADE PARTNERS

    HANDLE INSURANCEAND INDEMNIFICATIONG R A B B E D T H E S P O T L I G H T

    THAT ATTEMPTS TO STRIKE A MIDDLE GROUNDOF PROTECTION FOR SUB-CONTRACTORS

    WITHOUT UPSETTING THEI NDUS TRY IN SURANCE MARKE T

    A BILL WAS PASSED

  • 16 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    eral contractor and for which a sub-contractor had no involvement. This was balanced by lengthy discus-sions on the unique and inter-connected nature of our industry, which has led to the long-established risktransfer and indemnification model.

    The final bill permits contract clauses to allow for workers compensation, performance or paymentbonds, project-specific insurance and builders risk policies. This bill also protected contract clauses that re-quire insurance coverage for vicarious liability and warranty liability (homebuilders statutory warranties aswell as express and implied warranties).

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 17

    Minnesota Radon Awareness Act(HF 662/SF 887)

    Senate Author: Senator John Marty (DFL-Roseville)

    House Author: Representative Carolyn Laine (DFL-Columbia Heights)

    BATC Position: Support Fair Market Value Provisions

    Outcome: Provision passed and was signed into law as Chapter 43

    ISSUE BACKGROUND:

    Two bills aimed at raising public awareness of the health risks associated with radon were introduced in the2013 session. The first, Janets Law, required radon testing to be performed prior to completing a real es-tate transaction. The Healthy Homes Radon Disclosure Act required real estate transactions to include(1) disclosure language that spells out the health risks associated with radon, and (2) a statement from theMinnesota Department of Health urging potential homeowners to have a radon test performed.

    RADON AWARENESSWAS PROMINENT THIS SESSION

    WHILE THE TESTING MANDATE

    DIDNT PASSIN TO L AWA DISCLOSURE ON THEHEALTH RISKS ASSOCIATEWITH RADON EXPOSUREWILL NOW BE REQUIRED IN ALL

    RESIDENTIAL TRANSACTIONS

  • 18 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    Newly built homes are currently required to install a passive radon mitigation systemthese proposalsdont attempt to change that. The disclosure and testing requirements would apply to newly built homes atthe time of homeowner transaction.

    2013 ACTION:

    Janets Law (the mandatory testing bill) did not make the policy deadline and stalled for the session. TheHealthy Homes Radon Disclosure Act (mandatory disclosure bill) passed and now requires a mandatorystatement:

    The Minnesota Department of Health strongly recommends that ALLhomebuyers have an indoor radon test performed prior to purchase or takingoccupancy, and recommends having the radon levels mitigated if elevatedradon concentrations are found. Elevated radon concentrations can easily bereduced by a qualified, certified, or licensed, if applicable, radon mitigator.

    Every buyer of any interest in residential real property is notified that theproperty may present exposure to dangerous levels of indoor radon gas thatmay place the occupants at risk of developing radon-induced lung cancer.Radon, a Class A human carcinogen, is the leading cause of lung cancer innonsmokers and the second leading cause overall. The seller of any interest inresidential real property is required to provide the buyer with any informationon radon test results of the dwelling.

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 19

    Statute of Repose(HF 450/SF 392)

    Senate Author: Senator Ron Latz (DFL-St. Louis Park)

    House Author: Representative Joe Atkins (DFL-Inver Grove Heights)

    BATC Position: Neutral on final bill

    Outcome: Provision passed and was signed into law as Chapter 21

    ISSUE BACKGROUND:

    This bill proposed to modify the limits for contribution and indemnity actions for damages based on servicesor construction to improve real property. It aimed to extend by two years the current window for contribu-tion and indemnity claims (otherwise known as the statute of repose) of 12 years, bringing it to a total of 14years.

    2013 ACTION:

    The bill moved through the process with little discussion and passed unanimously in both bodies. The addi-tional two years does not affect the 10-year warranty or any homeowner actions against the builder. How-ever, in a scenario where a homeowner alleges a defect near year 10 of the warranty and does not initiatelegal action until near year 12 of the statute of repose, the additional two-year extension would allow forcontribution and indemnity claims by participating firms in a construction dispute.

    THE WARRANTY DEBATES.CHANGES TO STATUTE OF REPOSEFOR CONSTRUCTION CLAIMS

    BUILD IN A WINDOWFOR CONTRIBUTION & INDEMNITYACTIONS BETWEEN BUSINESSES

    WHILE MAINTAINING THE10-YEAR WARRANTY AS IS

  • 20 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    ENVIRONMENTALAWARENESS & PRODUCTSTEWARDSHIP CONTINUESTO EXPAND IN OUR

    INDUSTRYTHIS SESSION THE PAINT INDUSTRYWAS REQUIRED TO CREATE A

    STEWARDSHIP

    PLANTHAT THE S TATE WILLAPPROVE AND OVERSEE

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 21

    Extended Producer Responsibility(HF 865/SF 639)

    Senate Author: Senator Chris Eaton (DFL-Brooklyn Center)

    House Author: Representative Mike Sundin (DFL-Esko)

    BATC Position: Neutral

    Outcome: Provision passed as part of the omnibus Environment Finance bill, Chapter 114

    ISSUE BACKGROUND:

    Product stewardship means that all parties involved in designing, manufacturing, selling and using a producttake responsibility for environmental impacts at every stage of that products life.

    In particular, product stewardship requires manufacturers to share in the financial and physical responsi-bility for collecting and recycling products at the end of their useful lives. When manufacturers share thecosts of recycling products, they have an incentive to use recycled materials in new products and designproducts to be less toxic and easier to recycle, incorporating environmental concerns into the earliest phasesof product design.

    This bill required architectural paint manufacturers in Minnesota to organize and implement waste col-lection and recycling programs. It also required manufacturers of those products to identify which itemsthey accept and to develop a system to collect items, plus detail a public outreach and promotion plan. Theproposal required approval by the MPCA and implementation by 2015. (This plan was modeled after re-quirements for the collection and recycling of electronic products the state enacted in 2007.)

    2013 ACTION:

    The bill cleared policy committees in both bodies and was folded into the Omnibus Environment Financebill, which passed and was signed by Governor Dayton.

  • 22 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES22 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    THE BUDGETTAXES ARE GOING UPON HIGH-INCOME EARNERS

    SMOKERS & SOMEB2B TRANSACTIONS

    THE GOP CONTENDSTHAT THIS IS A VERY REALTHREAT TO OUR ECONOMIC

    RECOVERY& REGIONAL COMPETITIVENESS

    DFL CLAIMSTHE BUDGET IS HONEST &ADDITIONAL FUNDS ARE NEEDED TO

    BOOST EDUCATION& MAINTAIN QUALITY OF LIFE

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up 23

    Tax BillSenate Author: Senator Rod Skoe (DFL-Clearbrook)

    House Author: Representative Ann Lenczewski (DFL-Bloomington)

    BATC Position: Oppose B2B Sales Tax; Income Tax Provisions

    Outcome: B2B Income Tax and B2B Sales Tax provisions passed in the Tax omnibus bill and wassigned into law as Chapter 143

    ISSUE BACKGROUND:

    The key element in Governor Daytons original tax overhaul was to lower and broaden Minnesotas sales taxon personal and business services. The proposed broadening of the tax to business services included legal,public relations, design, advertising, and engineering services, among others, and was met with universal op-position from business groups throughout the state. For most BATC members the business-to-business salestax would increase project costs considerably.

    In mid-March, Governor Mark Dayton surprised many observers when he announced he was droppinghis proposal to extend the sales tax to business-to-business transactions. This set the race to final tax nego-tiations between the Governor, House and Senate in motion. All parties wanted increased revenue to makestructural budget changes, but the pathways to reach that goal were varied. The final bill was passed justminutes before adjournment.

    2013 ACTION:

    The state will raise an additional $2 billion in tax revenue to offset an earlier projected $627 million deficit(as well as funding new spending).

    Smokers will pay double the existing cigarette tax as the tax increases from $1.23 a pack to $2.83 a pack(an increase of $1.60 per pack).

    High-income earners will see an income tax increase. The rate will be 9.85 percent for those making$250,000 filing married-joint and for single filers making $150,000 or more.

    The business-to-business sales tax will become law including warehouse and storage sales tax (excludesfarm products, refrigerated storage, and electronic data storage) and sales tax on electronic and commercialequipment and repair (to include farm and capital equipment).

    The tax bill also includes financing to help Rochester handle the planned expansion of the Mayo Clinic,a project which BATC supported.

    Much of the spending will be geared toward education and property tax relief.

  • Thank YouWe want to thank all BATC members for their support, advocacy and commitment to our shared cause tocreate a better legislative environment within which your businesses can operate more effectively. It is anhonor to represent this industry.

    24 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    We encourage you to stay in touchwith us in the legislative interim

    The Voice, BATCs weekly e-newsletter

    Twitter

    STAYIN TOUCH

    BATC: @batctc

    Housing First: @housing_first

    James Vagle: @jvags

    David Siegel: @davidsiegel1

    Follow our BATCs blog atblog.batconline.org

    JASON McCARTY, ChairWestwood ProfessionalServices

    MARY SCHWEICHBATC, Public Policy Assistant

    PAMELA BELZSenior Housing Partners

    MORGAN BICKEL Lennar

    SCOTT BLOMProBuild

    GEORGE CUNDYCundy, Santine & Associate

    ROBERT ENGSTROMRobert EngstromCompanies

    LARRY FRANKArcon Development, Inc.

    PAUL HEUERStantec

    BILL KEENAN - Builders Development &Finance

    RICK KOTR.A. Kot Homes, Inc.

    FRANK KOTTSCHADENorth American Realty, Inc.

    GREG LIVERMONTAndersen Windows

    BOB MICHELSBob Michels Construction,Inc.

    SHAWN NELSONNew Spaces

    RYAN OHRIKO

    KATHLEEN OSTROMC.N. Ostrom & Son, Inc.

    RICK PACKERCentra Homes, LLC

    DAVID PATTBERGCentra Homes, LLC

    ALDEN PEARSONAcumen Legal Advisors,PLLC

    IAN PETERSONPulte Homes of MinnesotaLLC

    WILLIAN PRITCHARDPrudential

    RICHARD RIEMEERSMAImperial Homes, Inc.

    ROB SHAINESSCapstone Law, LLC

    JOSEPH SPRINGERFredrikson & Byron, P.A.

    JIM STANTONShamrock Builders, Inc

    STEVE WILLIAMSJMS Custom Homes

    PUBLIC POLICYC O M M I T T E E

  • A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES 2013 Legislative Wrap-Up APPENDICE A

    Appendices

    Statute of ReposeCHAPTER 21--H.F.No. 450

    Section 1. Minnesota Statutes 2012, section 541.051, is amended to read:

    541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES OR CONSTRUCTION TOIMPROVE REAL PROPERTY.

    Subdivision 1. Limitation; service or construction of real property; improvements. (a) Exceptwhere fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for anyinjury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective andunsafe condition of an improvement to real property, shall be brought against any person performing orfurnishing the design, planning, supervision, materials, or observation of construction or construction ofthe improvement to real property or against the owner of the real property more than two years after dis-covery of the injury, nor in any event shall such a cause of action accrue more than ten years after sub-stantial completion of the construction. Date of substantial completion shall be determined by the datewhen construction is sufficiently completed so that the owner or the owner's representative can occupy oruse the improvement for the intended purpose.

    (b) Notwithstanding paragraph (a), an action for contribution or indemnity arising out of the defectiveand unsafe condition of an improvement to real property may be brought no later than two years afterthe cause of action for contribution or indemnity has accrued, regardless of whether it accrued before orafter the ten-year period referenced in paragraph (a), provided that in no event may an action for contri-bution or indemnity be brought more than 14 years after substantial completion of the construction.

    (c) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury; provided,however, that in the case of an action for contribution or indemnity under. For purposes of paragraph (b),a cause of action for contribution or indemnity accrues upon the earlier of commencement of the actionagainst the party seeking contribution or indemnity, or payment of a final judgment, arbitration award, orsettlement arising out of the defective and unsafe condition.

    (d) Nothing in this section shall apply to actions for damages resulting from negligence in the mainte-nance, operation or inspection of the real property improvement against the owner or other person in pos-session.

    (e) The limitations prescribed in this section do not apply to the manufacturer or supplier of any equip-ment or machinery installed upon real property.

    Subd. 2. Action allowed; limitation. Notwithstanding the provisions of subdivision 1, paragraph (a),in the case of a cause of action described in subdivision 1, paragraph (a), which accrues during the ninthor tenth year after substantial completion of the construction, an action to recover damages may bebrought within two years after the date on which the cause of action accrued, but in no event may suchan action be brought more than 12 years after substantial completion of the construction. Nothing in thissubdivision shall limit the time for bringing an action for contribution or indemnity.

    Subd. 3. Not construed. Nothing in this section shall be construed as extending the period pre-scribed by the laws of this state for the bringing of any action.

    Subd. 4. Applicability. For the purposes of actions based on breach of the statutory warranties setforth in section 327A.02, or to actions based on breach of an express written warranty, such actions shallbe brought within two years of the discovery of the breach. In the case of an action under section327A.05, which accrues during the ninth or tenth year after the warranty date, as defined in section327A.01, subdivision 8, an action may be brought within two years of the discovery of the breach, but in

    *Underlined languagedenotes new lawadopted by the 2013MN Legislature.Stricken languagedenotes existing lawremoved by the 2013MN Legislature

  • APPENDICE B 2013 Legislative Wrap-Up A MEMBER BENEFIT OF THE BUILDERS ASSOCIATION OF THE TWIN CITIES

    no event may an action under section 327A.05 be brought more than 12 years after the effective war-ranty date. An action for contribution or indemnity arising out of actions described in this subdivision maybe brought no later than two years after the earlier of commencement of the action against the partyseeking contribution or indemnity, or payment of a final judgment, arbitration award, or settlement arisingout of the breach, provided that in no event may an action for contribution or indemnity arising out of anaction described in section 327A.05 be brought more than 14 years after the effective warranty date.

    EFFECTIVE DATE. This section is effective August 1, 2013, and applies to actions commenced on orafter that date.

    MN Radon Awareness ActCHAPTER 43--S.F.No. 887

    [144.496] MINNESOTA RADON AWARENESS ACT.

    Subdivision 1. Citation. This section may be cited as the "Minnesota Radon Awareness Act."Subd. 2. Definitions. (a) The following terms used in this section have the meanings given them.(b) "Buyer" means a person negotiating or offering to acquire for value, legal or equitable title, or the

    right to acquire legal or equitable title to residential legal property.(c) "Mitigation" means measures designed to permanently reduce indoor radon concentrations.(d) "Radon test" means a measurement of indoor radon concentrations according to established indus-

    try standards for residential real property.(e) "Residential real property" means property occupied as, or intended to be occupied as, a single-

    family residence, including a unit in a common interest community as defined in section 515B.1-103,clause (10), regardless of whether the unit is in a

    common interest community not subject to chapter 515B.(f) "Seller" means a person who owns legal or equitable title to residential real property.(g) "Elevated radon concentration" means a radon concentration at or above the United States Envi-

    ronmental Protection Agency's radon action level.Subd. 3. Radon disclosure. (a) Before signing an agreement to sell or transfer residential real prop-

    erty, the seller shall disclose in writing to the buyer any knowledge the seller has of radon concentrationsin the dwelling. The disclosure shall include:

    (1) whether a radon test or tests have