SF 1815

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; modifying various requirements
for licensees of the Department of Commerce; amending
Minnesota Statutes 2004, sections 60K.36, subdivision
2; 60K.37, subdivision 1; 60K.38, subdivision 1;
60K.39, subdivision 3; 82.31, subdivision 5; 82B.02,
by adding a subdivision; 82B.10, subdivision 4;
82B.11, subdivision 6; 82B.13, subdivisions 1, 3, 4,
5; 82B.14; 82B.19, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapters 45; 82B;
repealing Minnesota Statutes 2004, section 82B.221;
Minnesota Rules, part 2808.2200.

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

Section 1.

[45.21] APPLICATION FEES.

Subdivision 1.

Fee refunds.

Refunds must not be given
other than for overpayment of fees. Overpayment means any
payment of money in excess of a statutory fee or for a license
for which a person does not qualify. An overpayment of a fee
must be returned upon proper application by the applicant. If
an applicant requests a refund of an overpayment, the request
must be received by the commissioner within six months of the
date of deposit or the overpayment will be forfeited. An
overpayment of a fee may be returned to the person entitled to
it upon determination by the commissioner that an overpayment
was made.

Subd. 2.

Withdrawal of application.

An application that
is incomplete is considered withdrawn if the applicant does not
submit a complete application within six months of the date the
application was received. The application fee is nonrefundable
if an application is withdrawn according to this subdivision.

Sec. 2.

[45.22] LICENSE EDUCATION.

(a) License education courses must be approved in advance
by the commissioner. Each sponsor who offers a license
education course must have at least one coordinator, approved by
the commissioner, who is responsible for supervising the
educational program and assuring compliance with all laws and
rules. "Sponsor" means any person or entity offering approved
education.

(b) For coordinators with an initial approval date before
the effective date of this provision, approval will expire on
December 31, 2005. For courses with an initial approval date on
or before December 31, 2000, approval will expire on April 30,
2006. For courses with an initial approval date after January
1, 2001, but before the effective date of this provision,
approval will expire on April 30, 2007.

Sec. 3.

Minnesota Statutes 2004, section 60K.36,
subdivision 2, is amended to read:

Subd. 2.

Examination not required.

A resident individual
applying for a limited lines credit insurance, title insurance,
travel baggage insurance, mobile telephone insurance,or bail
bonds license is not required to take a written examination.

Sec. 4.

Minnesota Statutes 2004, section 60K.37,
subdivision 1, is amended to read:

Subdivision 1.

Resident insurance producer.

A person is
a resident of this state if that person resides in this state or
the principal place of business of that person is maintained in
this state. Application for a license claiming residency in
this state constitutes an election of residency in this state.
A license issued upon an application claiming residency in this
state is void if the licensee, while holding a resident license
in this state, obtains a resident license in, or claims to be a
resident of, any other state or jurisdiction or if the licensee
ceases to be a resident of this state. However, if the
applicant is a resident of a community or trade area, the border
of which is contiguous with the state line of this state, the
applicant may qualify for a resident license in this state and
at the same time hold a resident license from the contiguous
state.

Sec. 5.

Minnesota Statutes 2004, section 60K.38,
subdivision 1, is amended to read:

Subdivision 1.

Issuance.

(a) Unless denied a license
under section 60K.43, a person who has met the requirements of
sections 60K.36 and 60K.37 must be issued an insurance producer
license. An insurance producer may receive qualification for a
license in one or more of the lines of authority in paragraphs
(b) and (c).

(b) An individual insurance producer may receive
qualification for a license in one or more of the following
major lines:

(1) life insurance: coverage on human lives including
benefits of endowment and annuities, and may include benefits in
the event of death or dismemberment by accident and benefits for
disability income;

(2) accident and health or sickness insurance: coverage
for sickness, bodily injury, or accidental death, and may
include benefits for disability income;

(3) property insurance: coverage for the direct or
consequential loss or damage to property of every kind;

(4) casualty insurance: coverage against legal liability,
including that for death, injury, or disability, or damage to
real or personal property;

(5) variable life and variable annuity products insurance:
coverage provided under variable life insurance contracts and
variable annuities; and

(6) personal lines: property and casualty insurance
coverage sold to individuals and families for primarily
noncommercial purposes.

(c) An individual insurance producer may receive
qualification for a license in one or more of the following
limited lines:

(1) limited line credit insurance;

(2) farm property and liability insurance;

(3) title insurance;

(4) travel baggage insurance;

(5) mobile telephone insurance; and

(6) bail bonds; and

(6) any other line of insurance permitted under state laws
or rules.

Sec. 6.

Minnesota Statutes 2004, section 60K.39,
subdivision 3, is amended to read:

Subd. 3.

Change of address.

A nonresident producer who
moves from one state to another state or a resident producer who
moves from this state to another state shall file a change of
address and provide certification from the new resident state
within ten days of the change of legal residence. No fee or
license application is required.

Sec. 7.

Minnesota Statutes 2004, section 82.31,
subdivision 5, is amended to read:

Subd. 5.

Period for application.

An applicant who
obtains an acceptable score on a salesperson's examination must
file an application and obtain the license within one year of
the date of successful completion of the examination or a second
examination must be taken to qualify for the license. If a new
examination is required, prelicense education must be completed
in accordance with section 82.29, subdivision 8.

Sec. 8.

Minnesota Statutes 2004, section 82B.02, is
amended by adding a subdivision to read:

Subd. 16.

Uspap.

"USPAP" means the Uniform Standards of
Professional Appraisal Practice established by the Appraisal
Foundation.

Sec. 9.

[82B.095] APPRAISER QUALIFICATION COMPONENTS.

The three components required for a real property appraiser
license are education, experience, and examination. Applicants
for a class of license must document that they have met at least
the component criteria that were in effect at the time they
completed that component.

Sec. 10.

Minnesota Statutes 2004, section 82B.10,
subdivision 4, is amended to read:

Subd. 4.

Period for application.

An applicant who
obtains an acceptable score on an examination must file an
application and obtain the license within one year two years of
the date of successful completion of the examination or a second
examination must be taken to qualify for the license.

Sec. 11.

Minnesota Statutes 2004, section 82B.11,
subdivision 6, is amended to read:

Subd. 6.

Temporary practice.

(a) The commissioner shall
issue a license for temporary practice as a real estate
appraiser under subdivision 3, 4, or 5 to a person certified or
licensed by another state if:

(1) the property to be appraised is part of a federally
related transaction and the person is licensed to appraise
property limited to the same transaction value or complexity
provided in subdivision 3, 4, or 5;

(2) the appraiser's business is of a temporary nature; and

(3) the appraiser registers with the commissioner to obtain
a temporary license before conducting appraisals within the
state.

(b) The term of a temporary practice license is the lesser
of:

(1) the time required to complete the assignment; or

(2) six months, with one extension allowed.

The appraiser may request one extension of no more than six
months on a form provided by the commissioner. If more than 12
months are necessary to complete the assignment, a new temporary
application and fee is required.

Sec. 12.

Minnesota Statutes 2004, section 82B.13,
subdivision 1, is amended to read:

Subdivision 1.

Registered real property appraiser or
licensed real property appraiser.

As a prerequisite for
licensing as a registered real property appraiser or licensed
real property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has
successfully completed at least 90 classroom hours of prelicense
courses. The courses must consist of 75 hours of general real
estate appraisal principles and 15 hours related to standards of
professional appraisal practice and the provisions of this
chapter the 15-hour national USPAP course.

Sec. 13.

Minnesota Statutes 2004, section 82B.13,
subdivision 3, is amended to read:

Subd. 3.

Commissioner's approval; rules.

The courses and
instruction and procedures of courses must be approved by the
commissioner. The commissioner may adopt rules to administer
this section. These rules must, to the extent practicable,
conform to the rules adopted for real estate and insurance
education. The credit hours required under this section may be
credited to a person for distance education courses that meet
Appraiser Qualifications Board criteria.

Sec. 14.

Minnesota Statutes 2004, 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 at least 120 classroom hours
of prelicense courses, including 15 hours related to the
standards of professional appraisal practice and the provisions
of this chapter,with particular emphasis on the appraisal of
one to four unit residential properties. Fifteen of the 120
hours must include successful completion of the 15-hour national
USPAP course.

Sec. 15.

Minnesota Statutes 2004, 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 at
least 180 classroom hours of prelicense courses, including 15
hours related to the standards of professional appraisal
practice and the provisions of this chapter,with particular
emphasis on the appraisal of nonresidential properties. Fifteen
of the 180 hours must include successful completion of the
15-hour national USPAP course.

Sec. 16.

Minnesota Statutes 2004, section 82B.14, is
amended to read:

82B.14 EXPERIENCE REQUIREMENT.

(a) As a prerequisite for licensing as a licensed real
property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has obtained
2,000 hours of experience in real property appraisal.

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 obtained
2,500 hours of experience in real property appraisal obtained in
no fewer than 24 months.

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 obtained
3,000 hours of experience in real property appraisal obtained in
no fewer than 30 months. At least 50 percent, or 1,500 hours,
must be in nonresidential appraisal work.

(b) Each applicant for license under section 82B.11,
subdivision 3, 4, or 5, shall give under oath a detailed listing
of the real estate appraisal reports or file memoranda for which
experience is claimed by the applicant. Upon request, the
applicant shall make available to the commissioner for
examination, a sample of appraisal reports that the applicant
has prepared in the course of appraisal practice.

(c) Applicants may not receive credit for experience
accumulated while unlicensed, if the experience is based on
activities which required a license under this section.

Sec. 17.

Minnesota Statutes 2004, section 82B.19,
subdivision 1, is amended to read:

Subdivision 1.

License renewals.

A licensed real estate
appraiser shall present evidence satisfactory to the
commissioner of having met the continuing education requirements
of this chapter before the commissioner renews a license.

The basic continuing education requirement for renewal of a
license is the completion by the applicant either as a student
or as an instructor, during the immediately preceding term of
licensing, of at least 30 classroom hours of instruction in
courses or seminars that have received the approval of the
commissioner. Classroom hour credit must not be accepted for
courses of less than two hours.As part of the continuing
education requirements of this section, the commissioner shall
require that all real estate appraisers receive at least seven
hours of training each license period in courses in laws or
regulations on standards of professional practice successfully
complete the seven-hour national USPAP update course every two
years. If the applicant's immediately preceding term of
licensing consisted of 12 or more months, but fewer than 24
months, the applicant must provide evidence of completion of 15
hours of instruction during the license period. If the
immediately preceding term of licensing consisted of fewer than
12 months, no continuing education need be reported.The credit
hours required under this section may be credited to a person
for distance education courses that meet Appraiser
Qualifications Board criteria.

Sec. 18. REPEALER.

(a) Minnesota Statutes 2004, section 82B.221, is repealed.

(b) Minnesota Rules, part 2808.2200, is repealed.