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GS(;L-7. State Licensing of Contractors (8) <br />The League opposes the_state's tnkeover of trade contractor licensine. <br />Licensing of general trade contractors and various other, activities has <br />long been a local prerogative, and the mechanism for license review, issuance, <br />and enforcement is already in place. The primary reason that local licensing <br />has been successful and therefore maintained at the local level In that <br />Inspection and enforcement personnel reside at the local level, know the area <br />and activities, and are familiar with local ordinance and restrictions, thus <br />providing better and faster enforcement. <br />Suggestions have been made to form a statewide licensing authority and <br />split the revenue among the licensing agency and various municipalities with the <br />cities maintaining enforcement tasks. It is questionable under this arrangement <br />if either the agency or municipalities would have enough funds to accomplish the <br />respective tasks. The current proposals seem to overly complicate the existing <br />system which is effectively regulating the contractors and may result in a <br />reduction of small contractors who operate in only a limited number of <br />communities. <br />GSGL-8. State Audits end City Financial Reporting, Requirements (8) <br />The League supports continuation of the existing auditing and financial <br />reporting requirements for cities. <br />Minnesota has one of the most modern and rigorous systems of oversight of <br />municipal finances in the nation. The state auditor currently reviews annual <br />financial reports of cities. Cities over 2,500 must have annual audits and the <br />state auditor has the authority to audit a city upon receipt of a petition. <br />There is no need to require cities under 2,500 to follow more rigorous <br />accounting requirements than presently exist or to have annual audits. <br />Additionally, the state auditor should not be given the power or <br />responsibility to audit local governments or their instrumentalities. The <br />League supports requirements that provide copies of local audits be sent to the <br />state auditor on a regular basis. The private sector is fully competent to <br />conduct governmental audits and may be more economical end practical than a <br />state agency. <br />-20- <br />