HF 647

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 01:35pm

A bill for an act
relating to commerce; renaming the division of insurance fraud; regulating
subpoenas issued by the commissioner; modifying certain continuing education
requirements; requiring and regulating an annual statement of actuarial opinions
of reserves and supporting documentation of property and casualty companies;
regulating certain stop loss coverage; modifying risk-based capital requirements
for certain insurers; regulating real estate appraiser licenses; modifying service
requests in connection with Public Utility Commission matters; repealing certain
unnecessary laws; amending Minnesota Statutes 2012, sections 45.0135; 45.027,
subdivision 2; 45.307; 45.43; 60A.235, subdivision 3, by adding a subdivision;
60A.62, subdivision 1; 82B.08, by adding a subdivision; 82B.094; 82B.095,
subdivision 2; 82B.10, subdivision 1; 82B.13, subdivisions 1, 4, 5, 8, by adding
a subdivision; 216.17, subdivisions 2, 4; 216B.18; 299C.40, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 60A; repealing
Minnesota Statutes 2012, sections 82B.095, subdivision 1; 115C.09, subdivision
3k; Laws 2000, chapter 488, article 3, section 37.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 45.0135, is amended to read:

45.0135 deleted text begin DIVISION OF INSURANCE deleted text end new text begin COMMERCE new text end FRAUD deleted text begin PREVENTION
deleted text end new text begin BUREAU new text end .

Subd. 2a.

Authorization.

The commissioner may appoint peace officers, as defined
in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as
defined in section 626.84, subdivision 1, paragraph (f), known as the deleted text begin Division of Insurance
deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end , to conduct investigations, and to make arrests under
sections 629.30 and 629.34. The jurisdiction of the law enforcement agency is limited to
offenses related to insurance fraud.

Subd. 2b.

Duties.

The deleted text begin Division of Insurance deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau
new text end shall:

(1) review notices and reports of insurance fraud submitted by authorized insurers,
their employees, and agents or producers;

(2) respond to notifications or complaints of suspected insurance fraud generated by
other law enforcement agencies, state or federal governmental units, or any other person;

(3) initiate inquiries and conduct investigations when the deleted text begin division deleted text end new text begin bureau new text end has reason
to believe that insurance fraud has been or is being committed; and

(4) report incidents of alleged insurance fraud disclosed by its investigations to
appropriate law enforcement agencies, including, but not limited to, the attorney general,
county attorneys, or any other appropriate law enforcement or regulatory agency, and shall
assemble evidence, prepare charges, and otherwise assist any law enforcement authority
having jurisdiction.

Subd. 2c.

Arrests and investigations.

The initial processing of a person arrested
by the deleted text begin Division of Insurance deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end for an offense within
its jurisdiction is the responsibility of the deleted text begin Division of Insurance Fraud Prevention deleted text end new text begin bureau
new text end unless otherwise directed by the law enforcement agency with primary jurisdiction.
Subsequent investigation shall be the responsibility of the deleted text begin Division of Insurance Fraud
Prevention deleted text end new text begin bureau new text end unless otherwise directed by the law enforcement agency with primary
jurisdiction. At the request of the primary jurisdiction, the deleted text begin Division of Insurance Fraud
Prevention deleted text end new text begin bureau new text end may assist in a subsequent investigation being carried out by the
primary jurisdiction.

Subd. 2d.

Policy for notice of investigations.

The deleted text begin Division of Insurance deleted text end new text begin Commerce
new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end must develop a policy for notifying the law enforcement agency
with primary jurisdiction when it has initiated investigation of any person within the
jurisdiction of that agency.

Subd. 2e.

Chief law enforcement officer.

The commissioner shall appoint a peace
officer employed full time to be the chief law enforcement officer and to be responsible
for the management of the deleted text begin Division of Insurance deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end .
The chief law enforcement officer shall possess the necessary police and management
experience to manage a law enforcement agency. The chief law enforcement officer
may appoint, discipline, and discharge all employees of the deleted text begin Division of Insurance Fraud
Prevention deleted text end new text begin bureau new text end . All police managerial and supervisory personnel must be full-time
employees of the deleted text begin Division of Insurance Fraud Prevention deleted text end new text begin bureau new text end . Supervisory personnel
must be on duty and available any time peace officers of the deleted text begin Division of Insurance Fraud
Prevention deleted text end new text begin bureau new text end are on duty.

Subd. 2f.

Compliance.

Except as otherwise provided in this section, the deleted text begin Division of
Insurance Fraud Prevention deleted text end new text begin Commerce Fraud Bureau new text end shall comply with all statutes and
administrative rules relating to the operation and management of a law enforcement agency.

Subd. 3.

Evidence, documentation, and related materials.

If the deleted text begin division deleted text end new text begin bureau
new text end seeks evidence, documentation, and related materials pertinent to an investigation, and the
matter is located outside of this state, the deleted text begin division deleted text end new text begin bureau new text end may designate representatives,
including officials of the state where the matter is located, to secure the matter or inspect
the matter on its behalf.

Subd. 4.

Confidentiality and immunity.

The provisions of chapter 13, including,
but not limited to, section 13.82, apply to the classification, disclosure, and collection of
data relating to the deleted text begin Division of Insurance deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end .

Subd. 5.

Annual report on activities and cost-effectiveness.

The deleted text begin Division of
Insurance deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end shall maintain records and information
in order to produce an annual report of its activities as may be prescribed by the
commissioner of commerce. The commissioner shall report annually to the house of
representatives and senate standing committees with jurisdiction over insurance issues
as to the activities of the deleted text begin division deleted text end new text begin bureau new text end and the cost-effectiveness of the programs
established by the deleted text begin division deleted text end new text begin bureau new text end .

Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention
account is created in the state treasury. Money received from assessments under subdivision
7 is deposited in the account. Money in this fund is appropriated to the commissioner of
commerce for the purposes specified in this section and sections 60A.951 to 60A.956.

Subd. 7.

Assessment.

Each insurer authorized to sell insurance in the state of
Minnesota, including surplus lines carriers, and having Minnesota earned premium the
previous calendar year shall remit an assessment to the commissioner for deposit in the
insurance fraud prevention account on or before June 1 of each year. The amount of the
assessment shall be based on the insurer's total assets and on the insurer's total written
Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13.
The assessment is calculated to be an amount up to the following:

	Total Assets	Assessment
	Less than $100,000,000		$	200
	$100,000,000 to $1,000,000,000		$	750
	Over $1,000,000,000		$	2,000
	Minnesota Written Premium	Assessment
	Less than $10,000,000		$	200
	$10,000,000 to $100,000,000		$	750
	Over $100,000,000		$	2,000

For purposes of this subdivision, the following entities are not considered to be
insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or
township mutuals organized under chapter 67A.

Subd. 8.

Investigations; health-related boards.

(a) The deleted text begin Division of Insurance
deleted text end new text begin Commerce new text end Fraud deleted text begin Prevention deleted text end new text begin Bureau new text end may consult with the appropriate health-related board
when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected
of insurance fraud.

(b) The deleted text begin division deleted text end new text begin bureau new text end shall, for any conviction involving or related to insurance,
send copies of all public data in its possession to the appropriate health-related licensing
board.

Sec. 2.

Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:

Subd. 2.

Power to compel production of evidence.

For the purpose of any
investigation, hearing, proceeding, or inquiry related to the duties and responsibilities
entrusted to the commissioner, the commissioner or a designated representative may
administer oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers, correspondence, memoranda,
agreements, or other documents or records that the commissioner considers relevant
or material to the inquiry.

new text begin A subpoena issued pursuant to this subdivision must state that the person to whom
the subpoena is directed may not disclose the fact that the subpoena was issued or the fact
that the requested records have been given to law enforcement personnel except:
new text end

new text begin (1) insofar as the disclosure is necessary to find and disclose the records; or
new text end

new text begin (2) pursuant to court order.
new text end

Sec. 3.

Minnesota Statutes 2012, section 45.307, is amended to read:

45.307 EDUCATION PROVIDER.

new text begin Subdivision 1. new text end

new text begin Duty to make records and data available to commissioner. new text end

A
person applying for approval as an education provider must make available upon request
such records and data required by the commissioner to administer the provisions and
further the purposes of this chapter.

new text begin Subd. 2. new text end

new text begin Responsibility for actions of coordinators and instructors. new text end

new text begin An
education provider is responsible for any actions taken by one or more of its coordinators
or instructors in the course of performing activities associated with license education
courses provided under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Responsibility for approval of coordinator. new text end

new text begin An education provider
must ensure that an individual acting as a coordinator on its behalf under this chapter has
received prior approval from the commissioner to act as a coordinator.
new text end

Sec. 4.

Minnesota Statutes 2012, section 45.43, is amended to read:

45.43 REPORTING REQUIREMENTS.

new text begin Subdivision 1. new text end

new text begin Course completions. new text end

Required education must be reported in a
manner prescribed by the commissioner within ten days of the course completion.

new text begin Subd. 2. new text end

new text begin Violations and penalties. new text end

new text begin (a) Each failure to report an individual licensee's
course completion in the manner prescribed by subdivision 1 constitutes a separate
violation.
new text end

new text begin (b) The commissioner may impose a civil penalty not to exceed $500 per violation
upon an education provider that violates subdivision 1.
new text end

Sec. 5.

new text begin [60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING
DOCUMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Statement of actuarial opinion. new text end

new text begin Every property and casualty
insurance company doing business in this state, unless otherwise exempted by the
domiciliary commissioner, shall annually submit the opinion of an appointed actuary
entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with
the appropriate National Association of Insurance Commissioners (NAIC) Property and
Casualty Annual Statement Instructions.
new text end

new text begin Subd. 2. new text end

new text begin Actuarial opinion summary. new text end

new text begin (a) Every property and casualty insurance
company domiciled in this state that is required to submit a statement of actuarial opinion
shall annually submit an actuarial opinion summary, written by the company's appointed
actuary. This actuarial opinion summary must be filed in accordance with the appropriate
NAIC Property and Casualty Annual Statement Instructions and must be considered as a
document supporting the actuarial opinion required in subdivision 1.
new text end

new text begin (b) A company licensed but not domiciled in this state shall provide the actuarial
opinion summary upon request.
new text end

new text begin Subd. 3. new text end

new text begin Actuarial report and workpapers. new text end

new text begin (a) An actuarial report and its
underlying workpapers as required by the appropriate NAIC Property and Casualty
Annual Statement Instructions must be prepared to support each actuarial opinion.
new text end

new text begin (b) If the insurance company fails to provide a supporting actuarial report and/or
workpapers at the request of the commissioner or the commissioner determines that
the supporting actuarial report or workpapers provided by the insurance company are
otherwise unacceptable to the commissioner, the commissioner may engage a qualified
actuary at the expense of the company to review the opinion and the basis for the opinion
and prepare the supporting actuarial report or workpapers.
new text end

new text begin Subd. 4. new text end

new text begin Liability. new text end

new text begin The appointed actuary shall not be liable for damages to any
person, other than the insurance company and the commissioner, for any act, error,
omission, decision, or conduct with respect to the actuary's opinion, except in cases of
fraud or willful misconduct on the part of the appointed actuary.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 31, 2013.
new text end

Sec. 6.

new text begin [60A.1296] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Actuarial opinion; public document. new text end

new text begin The statement of actuarial
opinion must be provided with the annual statement in accordance with the appropriate
National Association of Insurance Commissioners (NAIC) Property and Casualty Annual
Statement Instructions and must be treated as a public document.
new text end

new text begin Subd. 2. new text end

new text begin Supporting materials; confidential and privileged. new text end

new text begin (a) Documents,
materials, or other information in the possession or control of the Department of Commerce
that are considered an actuarial report, workpapers, or actuarial opinion summary
provided in support of the opinion, and any other material provided by the company to the
commissioner in connection with the actuarial report, workpapers, or actuarial opinion
summary, shall be confidential by law and privileged, shall not be subject to subpoena,
and shall not be subject to discovery or admissible in evidence in any private civil action.
new text end

new text begin (b) This provision shall not be construed to limit the commissioner's authority to:
new text end

new text begin (1) release the documents to the Actuarial Board for Counseling and Discipline
(ABCD) so long as the material is required for the purpose of professional disciplinary
proceedings and the ABCD establishes procedures satisfactory to the commissioner for
preserving the confidentiality of the documents; or
new text end

new text begin (2) use the documents, materials, or other information in furtherance of any
regulatory or legal action brought as part of the commissioner's official duties.
new text end

new text begin Subd. 3. new text end

new text begin Protections. new text end

new text begin Neither the commissioner nor any person who received
the documents, materials, or other information while acting under the authority of
the commissioner shall be permitted or required to testify in any private civil action
concerning any confidential documents, materials, or information subject to subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Exceptions. new text end

new text begin In order to assist in the performance of the commissioner's
duties, the commissioner:
new text end

new text begin (1) may share documents, materials, or other information, including the confidential
and privileged documents, materials, or information subject to subdivision 2 with other
state, federal, and international regulatory agencies; with the NAIC and its affiliates
and subsidiaries; and with state, federal, and international law enforcement authorities,
provided that the recipient agrees to maintain the confidentiality and privileged status
of the document, material, or other information and has the legal authority to maintain
confidentiality;
new text end

new text begin (2) may receive documents, materials, or information, including otherwise
confidential and privileged documents, materials, or information, from NAIC and its
affiliates and subsidiaries, and from regulatory and law enforcement officials of other
foreign or domestic jurisdictions, and shall maintain as confidential or privileged any
document, material, or information received with notice or the understanding that it is
confidential or privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and
new text end

new text begin (3) may enter into agreements governing sharing and use of information consistent
with subdivisions 2 to 4.
new text end

new text begin Subd. 5. new text end

new text begin Nonwaiver. new text end

new text begin No waiver of applicable privilege or claim of confidentiality
in the documents, materials, or information shall occur as a result of disclosure to the
commissioner under this section or as a result of sharing as authorized in subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 31, 2013.
new text end

Sec. 7.

Minnesota Statutes 2012, section 60A.235, subdivision 3, is amended to read:

Subd. 3.

Health plan policies issued as stop loss coverage.

(a) An insurance
company or health carrier issuing or renewing an insurance policy or other evidence of
coverage, that provides coverage to an employer for health care expenses incurred under
an employer-sponsored plan provided to the employer's employees, retired employees,
or their dependents, shall issue the policy or evidence of coverage as a health plan if the
policy or evidence of coverage:

(1) has a specific attachment point for claims incurred per individual that is lower
than deleted text begin $20,000 deleted text end new text begin $60,000 new text end ; or

(2) has an aggregate attachment point, for groups deleted text begin of 50 or fewer deleted text end new text begin that meet the
definition of a small employer as defined in section 62L.02, subdivision 26 new text end , that is lower
than the greater of:

deleted text begin (i) $4,000 times the number of group members;
deleted text end

deleted text begin (ii) deleted text end new text begin (i) new text end 120 percent of expected claims; or

deleted text begin (iii) $20,000 deleted text end new text begin (ii) $60,000 new text end ; or

(3) has an aggregate attachment point new text begin , new text end for groups deleted text begin of 51 or more deleted text end new text begin that do not meet
the definition of a small employer as defined in section 62L.02, subdivision 26, new text end that is
lower than 110 percent of expected claims.

(b) An insurer shall determine the number of persons in a group, for the purposes
of this section, on a consistent basis, at least annually. Where the insurance policy or
evidence of coverage applies to a contract period of more than one year, the dollar
amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length
of the contract period expressed in years.

(c) The commissioner may adjust the constant dollar amounts provided in paragraph
(a), clauses (1), (2), and (3), on January 1 of any year, based upon changes in the medical
component of the Consumer Price Index (CPI). Adjustments must be in increments of
$100 and must not be made unless at least that amount of adjustment is required. The
commissioner shall publish any change in these dollar amounts at least six months before
their effective date.

(d) A policy or evidence of coverage issued by an insurance company or health
carrier that provides direct coverage of health care expenses of an individual including a
policy or evidence of coverage administered on a group basis is a health plan regardless of
whether the policy or evidence of coverage is denominated as stop loss coverage.

Sec. 8.

Minnesota Statutes 2012, section 60A.235, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Certain stop loss policies; nonapplication. new text end

new text begin The requirements of
subdivision 3 do not apply to a stop loss policy issued or renewed to an employer that had
stop loss insurance in place prior to July 1, 2012, to the extent that the employer continues
to maintain stop loss insurance that complies with the following requirements:
new text end

new text begin (1) if specific coverage is included under the stop loss insurance, has a specific
attachment point for claims incurred per individual that is at least $20,000; and
new text end

new text begin (2) if aggregate coverage is included under the stop loss insurance, has an aggregate
attachment point, for groups that meet the definition of a small employer as defined in
section 62L.02, subdivision 26, that is no lower than the greater of:
new text end

new text begin (i) $4,000 times the number of group members;
new text end

new text begin (ii) 120 percent of expected claims; or
new text end

new text begin (iii) $20,000; and
new text end

new text begin (3) for groups that meet the definition of small employer as defined in section 62L.02,
subdivision 26, includes a claims settlement period in compliance with section 60A.236.
new text end

Sec. 9.

Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:

Subdivision 1.

Definition.

"Company action level event" means any of the
following events:

(1) the filing of a risk-based capital report by an insurer which indicates that:

(i) the insurer's total adjusted capital is greater than or equal to its regulatory action
level risk-based capital but less than its company action level risk-based capital; deleted text begin or
deleted text end

(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater
than or equal to its company action level risk-based capital but less than the product of its
authorized control level risk-based capital and deleted text begin 2.5 deleted text end new text begin 3.0 new text end and has a negative trend; new text begin or
new text end

new text begin (iii) if a property and casualty insurer, the insurer has total adjusted capital which
is greater than or equal to its company action level risk-based capital but less than the
product of its authorized control level risk-based capital and 3.0 and triggers the trend
test determined in accordance with the trend test calculation included in the property
and casualty risk-based capital instructions;
new text end

(2) the notification by the commissioner to the insurer of an adjusted risk-based
capital report that indicates an event in clause (1), provided the insurer does not challenge
the adjusted risk-based report under section 60A.66; or

(3) if, pursuant to section 60A.66, an insurer challenges an adjusted risk-based
capital report that indicates the event in clause (1), the notification by the commissioner to
the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 31, 2013.
new text end

Sec. 10.

Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Criminal history record check; fingerprints. new text end

new text begin (a) An applicant for a
license must:
new text end

new text begin (1) consent to a criminal history record check;
new text end

new text begin (2) submit a fingerprint card in a form acceptable to the commissioner; and
new text end

new text begin (3) pay the fee required to perform criminal history record checks with the Minnesota
Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
new text end

new text begin (b) The commissioner may contract for the collection and transmission of
fingerprints required under this chapter and may order the fee for collecting and
transmitting fingerprints to be payable directly to the contractor by the applicant. The
commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
new text end

new text begin (c) The commissioner must treat and maintain an applicant's fingerprints and any
criminal history record information obtained under this chapter as confidential and must
apply security measures consistent with the standards specified by the Criminal Justice
Information Services Division of the Federal Bureau of Investigation for the electronic
storage of fingerprints and necessary identifying information. The commissioner must
limit the use of records solely to the purposes authorized in this chapter. The fingerprints
and any criminal history record information must not be subject to subpoena, other than
one issued in a criminal action or investigation.
new text end

new text begin (d) The commissioner may receive criminal history record information from another
government agency in lieu of the Minnesota Bureau of Criminal Apprehension.
new text end

new text begin (e) This subdivision applies to an applicant for an initial license or a renewal license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015, and applies to
persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that
date who were not previously fingerprinted in compliance with the terms of this subdivision.
new text end

Sec. 11.

Minnesota Statutes 2012, section 82B.094, is amended to read:

82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.

(a) A certified residential real property appraiser or a certified general real property
appraiser, in good standing, may engage a trainee real property appraiser to assist in the
performance of real estate appraisals, provided that the certified residential real property
appraiser or a certified general real property appraiser:

(1) new text begin has been licensed in good standing as either a certified residential real property
appraiser or a certified general real property appraiser for a total of at least three years;
new text end

new text begin (2) has completed a course that is specifically oriented to the requirements and
responsibilities of supervisory appraisers and trainee appraisers;
new text end

new text begin (3) new text end has not been the subject of any license or certificate suspension or revocation or
has not been prohibited from supervising activities in this state or any other state within
the previous two years;

deleted text begin (2) deleted text end new text begin (4) new text end has no more than three trainee real property appraisers working under
supervision at any one time;

deleted text begin (3) deleted text end new text begin (5) new text end actively and personally supervises the trainee real property appraiser, which
includes ensuring that research of general and specific data has been adequately conducted
and properly reported, application of appraisal principles and methodologies has been
properly applied, that the analysis is sound and adequately reported, and that any analyses,
opinions, or conclusions are adequately developed and reported so that the appraisal
report is not misleading;

deleted text begin (4) deleted text end new text begin (6) new text end discusses with the trainee real property appraiser any necessary and
appropriate changes that are made to a report, involving any trainee appraiser, before it is
transmitted to the client. Changes not discussed with the trainee real property appraiser
that are made by the supervising appraiser must be provided in writing to the trainee real
property appraiser upon completion of the appraisal report;

deleted text begin (5) deleted text end new text begin (7) new text end accompanies the trainee real property appraiser on the inspections of the
subject properties and drive-by inspections of the comparable sales on all appraisal
assignments for which the trainee will perform work until the trainee appraiser is
determined to be competent, in accordance with the competency rule of USPAP for the
property type;

deleted text begin (6) deleted text end new text begin (8) new text end accepts full responsibility for the appraisal report by signing and certifying
that the report complies with USPAP; and

deleted text begin (7) deleted text end new text begin (9) new text end reviews and signs the trainee real property appraiser's appraisal report or
reports or if the trainee appraiser is not signing the report, states in the appraisal the name
of the trainee and scope of the trainee's significant contribution to the report.

(b) The supervising appraiser must review and sign the applicable experience log
required to be kept by the trainee real property appraiser.

(c) The supervising appraiser must notify the commissioner within ten days when
the supervision of a trainee real property appraiser has terminated or when the trainee
appraiser is no longer under the supervision of the supervising appraiser.

(d) The supervising appraiser must maintain a separate work file for each appraisal
assignment.

(e) The supervising appraiser must verify that any trainee real property appraiser that
is subject to supervision is properly licensed and in good standing with the commissioner.

Sec. 12.

Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Components on or after January 1, 2009 deleted text end new text begin Conformance to Appraiser
Qualifications Board criteria new text end .

deleted text begin (a) On or after January 1, 2009, an applicant for a class
of license must document that the applicant has met the education, experience, and
examination components in effect after January 1, 2008.
deleted text end

deleted text begin (b) deleted text end Qualifications for all levels of licensing must conform to the Real Property
Qualification Criteria established by the Appraisal Qualifications Board for implementation
effective January 1, deleted text begin 2008 deleted text end new text begin 2015 new text end .

Sec. 13.

Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) An applicant for a license must pass an examination
conducted by the commissioner. The examinations must be of sufficient scope to establish
the competency of the applicant to act as a real estate appraiser and must conform
with the current National Uniform Exam Content Outlines published by the Appraiser
Qualifications Board.

(b) A passing grade for a real estate appraiser licensing examination must be the cut
score defined by the Appraiser Qualifications Board criteria.

(c) To qualify for a license as a trainee real property appraiser, an applicant must
pass a current trainee real property appraiser examination. The examination must test the
applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
in this chapter.

(d) To qualify for a license as a licensed real property appraiser, an applicant must
pass a current uniform licensed real property appraiser examination approved by the
Appraiser Qualifications Board. The examination must test the applicant's knowledge of
appraisal terms, principles, theories, and ethics as provided in this chapter.

(e) To qualify for a license as a certified residential real property appraiser, an
applicant must pass a current uniform certified residential real property appraiser
examination approved by the Appraiser Qualifications Board. The examination must test
the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
in this chapter.

(f) To qualify for a license as a certified general real property appraiser, an applicant
must pass a current uniform certified general real property appraiser examination approved
by the Appraiser Qualifications Board. The examination must test the applicant's
knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.

new text begin (g) An applicant must complete the applicable education prerequisites in section
82B.13 and the experience requirements in section 82B.14 before the applicant takes the
examination required under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:

Subdivision 1.

Trainee real property appraiser deleted text begin or licensed real property
appraiser deleted text end .

new text begin (a) new text end As a prerequisite for licensing as a trainee real property appraiser deleted text begin or
licensed real property appraiser deleted text end , an applicant must present evidence satisfactory to the
commissioner that the person has successfully completed new text begin :
new text end

new text begin (1) new text end at least deleted text begin 90 classroom deleted text end new text begin 75 new text end hours of prelicense courses new text begin approved by the
commissioner new text end . deleted text begin The courses must consist deleted text end new text begin Fifteen new text end of new text begin the new text end 75 hours new text begin must include successful
completion new text end of deleted text begin general real estate appraisal principles and deleted text end the 15-hour national USPAP
course new text begin ; and
new text end

new text begin (2) in addition to the required hours under clause (1), a course that is specifically
oriented to the requirements and responsibilities of supervisory appraisers and trainee
appraisers new text end .

deleted text begin (a) After January 1, 2008, a trainee real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed at
least 75 hours of prelicense courses approved by the commissioner.
deleted text end

(b) deleted text begin After January 1, 2008, a licensed real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed
at least 150 hours of prelicense courses approved by the commissioner deleted text end new text begin All qualifying
education must be completed within the five-year period prior to the date of submission of
a trainee real property appraiser license application new text end .

Sec. 15.

Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Licensed real property appraiser. new text end

new text begin As a prerequisite for licensing as a
licensed real property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has successfully completed:
new text end

new text begin (1) at least 150 hours of prelicense courses approved by the commissioner. The
courses must consist of 75 hours of general real estate appraisal principles and the 15-hour
national USPAP course; and
new text end

new text begin (2) an associate degree or higher from an accredited college or university. In lieu of
the required degree, the applicant may present satisfactory documentation of successful
completion of 30 semester credit hours of instruction from an accredited college or
university.
new text end

Sec. 16.

Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:

Subd. 4.

Certified residential real property appraiser.

As a prerequisite for
licensing as a certified residential real property appraiser, an applicant must present
evidence satisfactory to the commissioner that the person has successfully completed new text begin :
new text end

new text begin (1) new text end at least deleted text begin 120 classroom deleted text end new text begin 200 new text end hours of prelicense courses new text begin approved by the
commissioner new text end , with particular emphasis on the appraisal of one to four unit residential
properties. Fifteen of the deleted text begin 120 deleted text end new text begin 200 new text end hours must include successful completion of the
15-hour national USPAP course deleted text begin . deleted text end new text begin ; and
new text end

deleted text begin After January 1, 2008, A certified residential real property appraiser applicant
must present evidence satisfactory to the commissioner that the person has successfully
completed:
deleted text end

deleted text begin (1) 200 hours of prelicense courses approved by the commissioner; and
deleted text end

(2) deleted text begin an associate deleted text end new text begin a bachelor's new text end degree new text begin or higher new text end from an accredited college or
university. deleted text begin In lieu of the required degree the applicant may present satisfactory
documentation of completion of 21 semester credit hours from an accredited college or
university covering the following subject matter courses: English composition; principles
of economics (micro or macro); finance; algebra, geometry, or higher mathematics;
statistics; computer science; and business or real estate law. If an applicant has completed
education requirements before January 1, 2008, no college degree is required.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:

Subd. 5.

Certified general real property appraiser.

As a prerequisite for
licensing as a certified general real property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has successfully completed new text begin :
new text end

new text begin (1) new text end at least deleted text begin 180 classroom deleted text end new text begin 300 new text end hours of prelicense courses new text begin approved by the
commissioner new text end , with particular emphasis on the appraisal of nonresidential properties.
Fifteen of the deleted text begin 180 deleted text end new text begin 300 new text end hours must include successful completion of the 15-hour national
USPAP course deleted text begin . deleted text end new text begin ; and
new text end

deleted text begin After January 1, 2008, A certified general real property appraiser applicant must
present evidence satisfactory to the commissioner that the person has successfully
completed:
deleted text end

deleted text begin (1) 300 hours of prelicense courses approved by the commissioner; and
deleted text end

(2) a bachelor's degree new text begin or higher new text end from an accredited college or university. deleted text begin In lieu of
the required degree the applicant may present satisfactory documentation of completion of
30 semester credit hours from an accredited college or university covering the following
subject matters courses: English composition; micro economics; macro economics;
finance; algebra, geometry, or higher mathematics; statistics; computer science; business
or real estate law; and two elective courses in accounting, geography, ag-economics,
business management, or real estate. If an applicant has complete education requirements
before January 1, 2008, no college degree is required.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:

Subd. 8.

Appraiser prelicense education.

new text begin (a) Credit toward the qualifying
education requirements of this section may also be obtained via the completion of a
degree in real estate from an accredited degree-granting college or university approved
by the Association to Advance Collegiate Schools of Business, or a regional or national
accreditation agency recognized by the United States Secretary of Education, provided
that the college or university has had its curriculum reviewed and approved by the
Appraiser Qualifications Board.
new text end

new text begin (b) new text end Notwithstanding section 45.22, a college or university real estate course may be
approved retroactively by the commissioner for appraiser prelicense education credit if:

(1) the course was offered by a college or university physically located in Minnesota;

(2) the college or university was an approved education provider at the time the
course was offered; and

(3) the commissioner's approval is made to the same extent in terms of courses and
hours and with the same time limits as those specified by the Appraiser Qualifications
Board.

Sec. 19.

Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:

Subd. 2.

Service of notice, order, or other document from commission.

Service of
all notices, orders, and other documents by the commission may be made by mail, personal
delivery, or electronic service upon any person or firm, or upon the president, general
manager, or other proper executive officer of any corporation interested. If any party has
appeared by attorney, such service must be made upon the attorney. Notwithstanding
section 14.62, orders and decisions may be served by mail, by personal delivery, or by
electronic service. The commission may provide electronic service to any person who has
provided an electronic address to the commission for service purposes. For purposes of this
section, the term "person" includes a natural person or an organization, whether for profit
or not for profit. new text begin Regulated utilities and state agencies must provide an electronic address
for electronic service purposes and must accept electronic service as official service.
new text end

Sec. 20.

Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:

Subd. 4.

Service by a party, participant, or other interested person.

When an
applicable statute or commission rule requires service of a filing or other document by a
party, participant, or other interested person upon persons on a service list maintained by the
commission, service may be made by personal delivery, mail, or electronic service, except
that electronic service may only be made upon persons on the official service list who have
previously agreed in writing to accept electronic service at an electronic address provided
to the commission for electronic service purposes. This section does not apply to the extent
another provision of this chapter or chapter 216A requires a specific method of service.
new text begin Regulated utilities and state agencies must provide an electronic address to the commission
for electronic service purposes and agree to accept electronic service as official service.
new text end

Sec. 21.

Minnesota Statutes 2012, section 216B.18, is amended to read:

216B.18 SERVICE OF NOTICE.

Service of notice of all hearings, investigations, and proceedings pending before
the commission and of complaints, reports, orders, and other documents must be
made personally, by electronic service as provided in section 216.17, or by mail as the
commission may direct. new text begin Regulated utilities and state agencies must provide an electronic
address to the commission for electronic service purposes and agree to accept electronic
service as official service.
new text end

Sec. 22.

Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located
in the Department of Public Safety and managed by the Bureau of Criminal Apprehension.
A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.

(c) "Law enforcement agency" means a Minnesota municipal police department,
the Metropolitan Transit Police, the Metropolitan Airports Police, the University of
Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit,
a Minnesota county sheriff's department, the Enforcement Division of the Department of
Natural Resources, new text begin the Commerce Fraud Bureau, new text end the Bureau of Criminal Apprehension,
or the Minnesota State Patrol.

Sec. 23. new text begin REVISOR INSTRUCTION.
new text end

new text begin Consistent with the name change in section 1, the revisor of statutes shall change
the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud
Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.
new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Petroleum tank release cleanup; PVC piping at residential
locations. new text end

new text begin Minnesota Statutes 2012, section 115C.09, subdivision 3k, new text end new text begin is repealed.
new text end

new text begin Subd. 2. new text end

new text begin Agricultural storage tank removal. new text end

new text begin Laws 2000, chapter 488, article
3, section 37, new text end new text begin is repealed.
new text end

new text begin Subd. 3. new text end

new text begin Prior appraiser qualification requirements. new text end

new text begin Minnesota Statutes 2012,
section 82B.095, subdivision 1, new text end new text begin is repealed.
new text end