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06 <br /> �® Department of Administration <br /> MEMORANDUM <br /> DATE: June 27,2003 <br /> TO: All Municipalities, Building Officials,and Mechanical Contractors <br /> FROM: Thomas R. Joachim <br /> State Building Official <br /> SUBJECT: Statewide Surety Bond and Filing Fee Requirements for mechanical <br /> work per MS 326.992 in Minnesota. <br /> Law effective: July 1,2003 <br /> The State Legislature passed a law effective July 1, 2003 requiring anyone who installs gas <br /> piping,heating,ventilation, cooling, air conditioning, fuel burning or refrigeration (G/VHACR) <br /> equipment to post a $25,000 bond and file with the Department of Administration, Building <br /> Codes and Standards Division. <br /> This bond is for the benefit of persons suffering financial loss'by reason of the contractor's <br /> failure to comply with the requirements of the State Mechanical Code.Further,this statute <br /> provides this bond in lieu of bonds required by local political subdivisions required for work <br /> covered by the statute. <br /> A bond in the amount of$25,000 and an annual $15 filing fee must be filed with the Minnesota <br /> Department of Administration, Building Codes and Standards Division. The names of <br /> contractors who have submitted their yearly filing and bond will be posted on the Building <br /> Codes and Standards website: www.buildimwodes.admin.state.mn.us <br /> A copy of the Mechanical Surety,Bond and Fee filing form is enclosed. The form is also <br /> available for download on the Building Codes and Standards website. <br /> Minnesota Statute 326.992 [Bond requirement; gas, heating, ventilation, air conditioning, <br /> refrigeration (G/HVACR) contractors.] <br /> (a) A person contracting to do gas,heating, ventilation, cooling, air conditioning, fuel <br /> burning, or refrigeration work must give bond to the state in the amount of$25,000 for all work <br /> entered into within-the state. The bond must be for the benefit of persons suffering financial loss <br /> by reason of the contractor's failure to comply with the requirements of the State Mechanical <br /> Code. A bond given to the state must be filed with the commissioner of Administration and is in <br /> lieu of all other bonds to any political subdivision required for work covered by this section. The <br /> bond must be written by a corporate surety licensed to do business in the state. <br /> (b) The commissioner of administration may charge each person giving bond under this <br /> section an annual bond filing fee of$15. The money must be deposited in a special revenue fund <br /> and is appropriated to the commissioner to cover the cost of administering the bond program. <br /> Building Codes and Standards Division,408 Metro Square Building, 121 7th Place,St.Paul,MN 55101-2181 <br /> 651.296.4639 Fax: 651-297-1973 TTY: 1.800.627.3529 and ask for 296.9929 <br /> www.buildingcodes.admin.mn.us <br />