SF 1541

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; regulating currency exchanges, 
  1.3             real estate brokers, real property appraisers, 
  1.4             residential contractors, and collection agencies; 
  1.5             modifying certain continuing education requirements; 
  1.6             regulating certain fees, costs, duties, rights, and 
  1.7             recovery fund amounts; amending Minnesota Statutes 
  1.8             2000, sections 45.0295; 53A.081, subdivision 2; 
  1.9             60K.19, subdivision 8; 72B.04, subdivisions 6 and 7; 
  1.10            80B.03, subdivision 4a; 82.22, subdivision 13; 82.24, 
  1.11            subdivision 8; 82.34, subdivision 15; 82B.14; 326.91, 
  1.12            subdivision 1; 326.975, subdivision 1; and 332.41; 
  1.13            repealing Minnesota Statutes 2000, section 83.25, 
  1.14            subdivision 2. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2000, section 45.0295, is 
  1.17  amended to read: 
  1.18     45.0295 [FEES.] 
  1.19     (a) The following fees shall be paid to the commissioner: 
  1.20     (1) for each hour or fraction of one hour of education 
  1.21  course approval for continuing education sought, $10; and 
  1.22     (2) for each continuing education course coordinator 
  1.23  approval, $100. 
  1.24     (b) All fees paid to the commissioner under this section 
  1.25  are nonrefundable, except that an overpayment of a fee shall be 
  1.26  returned upon proper application. 
  1.27     Sec. 2.  Minnesota Statutes 2000, section 53A.081, 
  1.28  subdivision 2, is amended to read: 
  1.29     Subd. 2.  [INVESTIGATION.] The commissioner may at any time 
  1.30  and shall at least once in each year investigate the currency 
  2.1   exchange business of any licensee and of every person, 
  2.2   partnership, association, and corporation engaged in the 
  2.3   business of operating a currency exchange in the manner provided 
  2.4   under section 45.027. 
  2.5      Sec. 3.  Minnesota Statutes 2000, section 60K.19, 
  2.6   subdivision 8, is amended to read: 
  2.7      Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
  2.8   subject to this section shall complete a minimum of 30 credit 
  2.9   hours of courses accredited by the commissioner during each 
  2.10  24-month licensing period.  Any person whose initial licensing 
  2.11  period extends more than six months shall complete 15 hours of 
  2.12  courses accredited by the commissioner during the initial 
  2.13  license period.  Any person teaching or lecturing at an 
  2.14  accredited course qualifies for 1-1/2 three times the number of 
  2.15  credit hours that would be granted to a person completing the 
  2.16  accredited course.  No more than 15 credit hours per licensing 
  2.17  period may be credited to a person for courses sponsored by, 
  2.18  offered by, or affiliated with an insurance company or its 
  2.19  agents.  Courses sponsored by, offered by, or affiliated with an 
  2.20  insurance company or agent may restrict its students to agents 
  2.21  of the company or agency. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 72B.04, 
  2.23  subdivision 6, is amended to read: 
  2.24     Subd. 6.  [EXCEPTIONS.] A person who on January 1, 1972, 
  2.25  meets all of the qualifications specified in subdivision 2 with 
  2.26  regard to the class of license applied for and, if experience is 
  2.27  one of the requisites, has gained the experience within the 
  2.28  three years next preceding January 1, 1972, shall be eligible 
  2.29  for the issuance of a license without taking an examination. 
  2.30     A person who has held a license of any given class or in 
  2.31  any field or fields within three years prior to the application 
  2.32  shall be entitled to a renewal of the license in the same class 
  2.33  or in the same fields without taking an examination. 
  2.34     A person applying for a license as a crop hail adjuster 
  2.35  shall not be required to comply with the requirements of 
  2.36  subdivision 5. 
  3.1      The commissioner may issue a license under sections 72B.01 
  3.2   to 72B.14 without an examination, if the applicant presents 
  3.3   sufficient and satisfactory evidence of having passed a similar 
  3.4   examination in another state and if the commissioner, with the 
  3.5   advice of the advisory board, has determined that the standards 
  3.6   of such other state are equivalent to those in Minnesota for the 
  3.7   class of license applied for.  Any applicant who presents 
  3.8   sufficient and satisfactory evidence of having successfully 
  3.9   completed all six parts of the insurance institute of America 
  3.10  program in adjusting or other programs approved by the 
  3.11  commissioner shall be entitled to an adjuster's license without 
  3.12  taking the examination prescribed in subdivision 5. 
  3.13     Sec. 5.  Minnesota Statutes 2000, section 72B.04, 
  3.14  subdivision 7, is amended to read: 
  3.15     Subd. 7.  [LICENSE TERM.] Every adjuster's and public 
  3.16  adjuster solicitor's license shall be for a term expiring on 
  3.17  October 31 next following the date of its issuance, and may be 
  3.18  renewed for the ensuing calendar year upon the timely filing of 
  3.19  an application for renewal.  (a) Initial licenses issued under 
  3.20  this section must be valid for a period not to exceed two 
  3.21  years.  Each initial license must expire on October 31 of the 
  3.22  expiration year assigned by the commissioner. 
  3.23     (b) Licenses issued under this section may be renewed upon 
  3.24  the timely filing of an application for renewal.  Every renewal 
  3.25  license is valid for a period of 24 months. 
  3.26     Sec. 6.  Minnesota Statutes 2000, section 80B.03, 
  3.27  subdivision 4a, is amended to read: 
  3.28     Subd. 4a.  Within three calendar business days of the date 
  3.29  of filing of the registration statement, the commissioner may by 
  3.30  order summarily suspend the effectiveness of the takeover offer 
  3.31  if the commissioner determines that the registration statement 
  3.32  does not contain all of the information specified in 
  3.33  subdivisions 2 and 6 or that the takeover offer materials 
  3.34  provided to offerees do not provide full disclosure to offerees 
  3.35  of all material information concerning the takeover offer.  The 
  3.36  suspension shall remain in effect only until the determination 
  4.1   following a hearing held pursuant to subdivision 5.  
  4.2      Sec. 7.  Minnesota Statutes 2000, section 82.22, 
  4.3   subdivision 13, is amended to read: 
  4.4      Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
  4.5   renewal date, all real estate salespersons and all real estate 
  4.6   brokers shall be required to successfully complete 30 hours of 
  4.7   real estate continuing education, either as a student or a 
  4.8   lecturer, in courses of study approved by the commissioner, 
  4.9   during each 24-month license period.  At least 15 of the 30 
  4.10  credit hours must be completed during the first 12 months of the 
  4.11  24-month licensing period.  Salespersons and brokers whose 
  4.12  initial license period extends more than 12 months are required 
  4.13  to complete 15 hours of real estate continuing education during 
  4.14  the initial license period.  Those licensees who will receive a 
  4.15  12-month license on July 1, 1995, because of the staggered 
  4.16  implementation schedule must complete 15 hours of real estate 
  4.17  continuing education as a requirement for renewal on July 1, 
  4.18  1996.  Licensees may not claim credit for continuing education 
  4.19  not actually completed as of the date their report of continuing 
  4.20  education compliance is filed. 
  4.21     (b) The commissioner shall adopt rules defining the 
  4.22  standards for course and instructor approval, and may adopt 
  4.23  rules for the proper administration of this subdivision.  The 
  4.24  commissioner may not approve a course which can be completed by 
  4.25  the student at home or outside the classroom without the 
  4.26  supervision of an instructor approved by the department of 
  4.27  commerce.  The commissioner has discretion to establish a pilot 
  4.28  program to explore delivery of accredited courses using new 
  4.29  delivery technology, including interactive technology.  This 
  4.30  pilot program expires on August 1, 2001 2002. 
  4.31     (c) Any program approved by Minnesota continuing legal 
  4.32  education shall be approved by the commissioner of commerce for 
  4.33  continuing education for real estate brokers and salespeople if 
  4.34  the program or any part thereof relates to real estate.  
  4.35     (d) As part of the continuing education requirements of 
  4.36  this section, the commissioner shall require that all real 
  5.1   estate brokers and salespersons receive: 
  5.2      (1) at least two hours of training during each license 
  5.3   period in courses in laws or regulations on agency 
  5.4   representation and disclosure; and 
  5.5      (2) at least two hours of training during each license 
  5.6   period in courses in state and federal fair housing laws, 
  5.7   regulations, and rules, or other antidiscrimination laws. 
  5.8      Clause (1) does not apply to real estate salespersons and 
  5.9   real estate brokers engaged solely in the commercial real estate 
  5.10  business who file with the commissioner a verification of this 
  5.11  status along with the continuing education report required under 
  5.12  paragraph (a). 
  5.13     (e) The commissioner is authorized to establish a procedure 
  5.14  for renewal of course accreditation. 
  5.15     Sec. 8.  Minnesota Statutes 2000, section 82.24, 
  5.16  subdivision 8, is amended to read: 
  5.17     Subd. 8.  [ACCRUED INTEREST.] (a) Each broker shall 
  5.18  maintain a pooled interest-bearing trust account for deposit of 
  5.19  client funds.  The interest accruing on the trust account, less 
  5.20  reasonable transaction costs, must be paid to the state 
  5.21  treasurer for deposit in the housing trust fund account created 
  5.22  under section 462A.201 unless otherwise specified pursuant to an 
  5.23  expressed written agreement between the parties to a transaction.
  5.24     (b) For an account created under paragraph (a), each broker 
  5.25  shall direct the financial institution to:  
  5.26     (1) pay the interest, less reasonable transaction costs, 
  5.27  computed in accordance with the financial institution's standard 
  5.28  accounting practice, at least quarterly, to the state treasurer; 
  5.29  and 
  5.30     (2) send a statement to the state treasurer showing the 
  5.31  name of the broker for whom the payment is made, the rate of 
  5.32  interest applied, the amount of service charges deducted, and 
  5.33  the account balance for the period in which the report is made. 
  5.34     The state treasurer shall credit the amount collected under 
  5.35  this subdivision to the housing trust fund account established 
  5.36  in section 462A.201. 
  6.1      (c) The financial institution must promptly notify the 
  6.2   commissioner if a draft drawn on the account is dishonored.  A 
  6.3   draft is not dishonored if a stop payment order is requested by 
  6.4   an issuer who has a good faith defense to payment on the draft. 
  6.5      Sec. 9.  Minnesota Statutes 2000, section 82.34, 
  6.6   subdivision 15, is amended to read: 
  6.7      Subd. 15.  Any sums received by the commissioner pursuant 
  6.8   to any provisions of this section shall be deposited in the 
  6.9   state treasury, and credited to the real estate education, 
  6.10  research and recovery fund, and said sums shall be allocated 
  6.11  exclusively for the purposes provided in this section.  All 
  6.12  moneys in the fund are appropriated annually to the commissioner 
  6.13  for the purposes of this section. 
  6.14     All money credited to the fund under section 462A.201 may 
  6.15  only be used for purposes under subdivision 6, clause (g).  
  6.16  Beginning in 1990, the commissioner must, on February 1 of each 
  6.17  year, review the amount of money spent or allocated for uses 
  6.18  under subdivision 6, clause (g), for the previous calendar 
  6.19  year.  If the amount spent or allocated is less than the amount 
  6.20  credited to the fund under section 462A.201 during the same 
  6.21  calendar year, the difference must be transferred from the fund 
  6.22  to the housing trust fund account established in section 
  6.23  462A.201.  If the fund balance exceeds $6,000,000, the 
  6.24  commissioner may suspend the fee imposed under subdivision 3. 
  6.25     Sec. 10.  Minnesota Statutes 2000, section 82B.14, is 
  6.26  amended to read: 
  6.27     82B.14 [EXPERIENCE REQUIREMENT.] 
  6.28     (a) As a prerequisite for licensing as a registered real 
  6.29  property appraiser or licensed real property appraiser, an 
  6.30  applicant must present evidence satisfactory to the commissioner 
  6.31  that the person has obtained 2,000 hours of experience in real 
  6.32  property appraisal. 
  6.33     As a prerequisite for licensing as a certified residential 
  6.34  real property appraiser, an applicant must present evidence 
  6.35  satisfactory to the commissioner that the person has obtained 
  6.36  2,500 hours of experience in real property appraisal. 
  7.1      As a prerequisite for licensing as a certified general real 
  7.2   property appraiser, an applicant must present evidence 
  7.3   satisfactory to the commissioner that the person has obtained 
  7.4   3,000 hours of experience in real property appraisal.  At least 
  7.5   50 percent, or 1,500 hours, must be in nonresidential appraisal 
  7.6   work. 
  7.7      (b) Each applicant for license under section 82B.11, 
  7.8   subdivision 3, 4, or 5, shall give under oath a detailed listing 
  7.9   of the real estate appraisal reports or file memoranda for which 
  7.10  experience is claimed by the applicant.  Upon request, the 
  7.11  applicant shall make available to the commissioner for 
  7.12  examination, a sample of appraisal reports that the applicant 
  7.13  has prepared in the course of appraisal practice. 
  7.14     (c) Applicants may not receive credit for experience 
  7.15  accumulated while unlicensed, if the experience is based on 
  7.16  activities which required a license under this section. 
  7.17     Sec. 11.  Minnesota Statutes 2000, section 326.91, 
  7.18  subdivision 1, is amended to read: 
  7.19     Subdivision 1.  [CAUSE.] The commissioner may by order 
  7.20  deny, suspend, or revoke any license or may censure a licensee, 
  7.21  and may impose a civil penalty as provided for in section 
  7.22  45.027, subdivision 6, if the commissioner finds that the order 
  7.23  is in the public interest, and that the applicant, licensee, or 
  7.24  affiliate of an applicant or licensee, or other agent, owner, 
  7.25  partner, director, governor, shareholder, member, officer, 
  7.26  qualifying person, or managing employee of the applicant or 
  7.27  licensee or any person occupying a similar status or performing 
  7.28  similar functions:  
  7.29     (1) has filed an application for a license which is 
  7.30  incomplete in any material respect or contains any statement 
  7.31  which, in light of the circumstances under which it is made, is 
  7.32  false or misleading with respect to any material fact; 
  7.33     (2) has engaged in a fraudulent, deceptive, or dishonest 
  7.34  practice; 
  7.35     (3) is permanently or temporarily enjoined by any court of 
  7.36  competent jurisdiction from engaging in or continuing any 
  8.1   conduct or practice involving any aspect of the business; 
  8.2      (4) has failed to reasonably supervise employees, agents, 
  8.3   subcontractors, or salespersons, or has performed negligently or 
  8.4   in breach of contract, so as to cause injury or harm to the 
  8.5   public; 
  8.6      (5) has violated or failed to comply with any provision of 
  8.7   sections 326.83 to 326.98 or any rule or order under sections 
  8.8   326.83 to 326.98; 
  8.9      (6) has been shown to be incompetent, untrustworthy, or 
  8.10  financially irresponsible; 
  8.11     (7) has been convicted of a violation failed to meet the 
  8.12  minimum standards of the State Building Code in the construction 
  8.13  or improvement of residential real estate; 
  8.14     (8) has failed to use the proceeds of any payment made to 
  8.15  the licensee for the construction of, or any improvement to, 
  8.16  residential real estate, as defined in section 326.83, 
  8.17  subdivision 17, for the payment of labor, skill, material, and 
  8.18  machinery contributed to the construction or improvement, 
  8.19  knowing that the cost of any labor performed, or skill, 
  8.20  material, or machinery furnished for the improvement remains 
  8.21  unpaid; 
  8.22     (9) has not furnished to the person making payment either a 
  8.23  valid lien waiver as to any unpaid labor performed, or skill, 
  8.24  material, or machinery furnished for an improvement, or a 
  8.25  payment bond in the basic amount of the contract price for the 
  8.26  improvement conditioned for the prompt payment to any person or 
  8.27  persons entitled to payment; 
  8.28     (10) has engaged in conduct which was the basis for a 
  8.29  contractor's recovery fund payment pursuant to section 326.975, 
  8.30  which payment has not been reimbursed; 
  8.31     (11) has engaged in bad faith, unreasonable delays, or 
  8.32  frivolous claims in defense of a civil lawsuit arising out of 
  8.33  their activities as a licensee under this chapter; 
  8.34     (12) has had a judgment entered against them for failure to 
  8.35  make payments to employees or subcontractors, and all appeals of 
  8.36  the judgment have been exhausted or the period for appeal has 
  9.1   expired; 
  9.2      (13) if unlicensed, has obtained a building permit by the 
  9.3   fraudulent use of a fictitious license number or the license 
  9.4   number of another, or, if licensed, has knowingly allowed an 
  9.5   unlicensed person to use the licensee's license number for the 
  9.6   purpose of fraudulently obtaining a building permit; or 
  9.7      (14) has made use of forged mechanics' lien waivers under 
  9.8   chapter 514. 
  9.9      Sec. 12.  Minnesota Statutes 2000, section 326.975, 
  9.10  subdivision 1, is amended to read: 
  9.11     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
  9.12  fees, each applicant for a license under sections 326.83 to 
  9.13  326.98 shall pay a fee to the contractor's recovery fund.  The 
  9.14  contractor's recovery fund is created in the state treasury and 
  9.15  must be administered by the commissioner in the manner and 
  9.16  subject to all the requirements and limitations provided by 
  9.17  section 82.34 with the following exceptions: 
  9.18     (1) each licensee who renews a license shall pay in 
  9.19  addition to the appropriate renewal fee an additional fee which 
  9.20  shall be credited to the contractor's recovery fund.  The amount 
  9.21  of the fee shall be based on the licensee's gross annual 
  9.22  receipts for the licensee's most recent fiscal year preceding 
  9.23  the renewal, on the following scale: 
  9.24            Fee           Gross Receipts
  9.25            $100          under $1,000,000
  9.26            $150          $1,000,000 to $5,000,000
  9.27            $200          over $5,000,000
  9.28  Any person who receives a new license shall pay a fee based on 
  9.29  the same scale; 
  9.30     (2) the sole purpose of this fund is to compensate any 
  9.31  aggrieved owner or lessee of residential property located within 
  9.32  this state who obtains a final judgment in any court of 
  9.33  competent jurisdiction against a licensee licensed under section 
  9.34  326.84, on grounds of fraudulent, deceptive, or dishonest 
  9.35  practices, conversion of funds, or failure of performance 
  9.36  arising directly out of any transaction when the judgment debtor 
 10.1   was licensed and performed any of the activities enumerated 
 10.2   under section 326.83, subdivision 19, on the owner's residential 
 10.3   property or on residential property rented by the lessee, or on 
 10.4   new residential construction which was never occupied prior to 
 10.5   purchase by the owner, or which was occupied by the licensee for 
 10.6   less than one year prior to purchase by the owner, and which 
 10.7   cause of action arose on or after April 1, 1994; 
 10.8      (3) nothing may obligate the fund for more than $50,000 per 
 10.9   claimant, nor more than $50,000 $100,000 per licensee; and 
 10.10     (4) nothing may obligate the fund for claims based on a 
 10.11  cause of action that arose before the licensee paid the recovery 
 10.12  fund fee set in clause (1), or as provided in section 326.945, 
 10.13  subdivision 3.  
 10.14     (b) Should the commissioner pay from the contractor's 
 10.15  recovery fund any amount in settlement of a claim or toward 
 10.16  satisfaction of a judgment against a licensee, the license shall 
 10.17  be automatically suspended upon the effective date of an order 
 10.18  by the court authorizing payment from the fund.  No licensee 
 10.19  shall be granted reinstatement until the licensee has repaid in 
 10.20  full, plus interest at the rate of 12 percent a year, twice the 
 10.21  amount paid from the fund on the licensee's account, and has 
 10.22  obtained a surety bond issued by an insurer authorized to 
 10.23  transact business in this state in the amount of at least 
 10.24  $40,000.  
 10.25     Sec. 13.  Minnesota Statutes 2000, section 332.41, is 
 10.26  amended to read: 
 10.27     332.41 [APPEALS.] 
 10.28     Subdivision 1.  [FILING OF APPEAL.] In the rejection of an 
 10.29  application for a license or the renewal thereof filed under 
 10.30  sections 332.31 to 332.45 or of the suspension or revocation of 
 10.31  a license granted under sections 332.31 to 332.45 the applicant 
 10.32  or licensee may within 90 days after receipt of notice of such 
 10.33  rejection, suspension, or revocation, file an appeal and 
 10.34  thereafter prosecute the appeal in accordance with the 
 10.35  provisions of the statutes governing appeal from, or review of, 
 10.36  decisions of administrative agencies in this state.  
 11.1      Subd. 2.  [SUPERSEDEAS.] The filing of an appeal from an 
 11.2   order of the commissioner of commerce rejecting an application 
 11.3   for a license by a collection agency engaged in business as of 
 11.4   July 1, 1969, or rejecting an application for the renewal of a 
 11.5   license, or suspending or revoking a license within 60 days 
 11.6   after the date of such order, shall operate as a supersedeas 
 11.7   which shall continue pending final determination of such appeal. 
 11.8      Appeal from a denial, suspension, revocation, or censure of 
 11.9   a license must be made according to chapter 14. 
 11.10     Sec. 14.  [REPEALER.] 
 11.11     Minnesota Statutes 2000, section 83.25, subdivision 2, is 
 11.12  repealed. 
 11.13     Sec. 15.  [EFFECTIVE DATE.] 
 11.14     Sections 1 to 7 and 9 to 14 are effective the day following 
 11.15  final enactment.