SF 3503

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2022 03:39pm

A bill for an act
relating to commerce; real estate appraisers; making changes related to minimum
damage acquisition reports, continuing education, and investigations by the
commissioner; amending Minnesota Statutes 2020, sections 82B.03, by adding a
subdivision; 82B.07; 82B.19, by adding a subdivision; 82C.17, subdivision 2.

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

Section 1.

Minnesota Statutes 2020, section 82B.03, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Minimum damage acquisition report. new text end

new text begin A real estate appraiser may provide a
minimum damage acquisition report for purposes of section 117.036. When providing a
minimum acquisition damage report, a real estate appraiser is not engaged in real estate
appraisal activity and is not subject to this chapter.
new text end

Sec. 2.

Minnesota Statutes 2020, section 82B.07, is amended to read:

82B.07 POWERS OF THE COMMISSIONER.

new text begin (a) new text end The commissioner shall:

(1) receive applications for licenses;

(2) establish the procedures for processing applications for licensing;

(3) issue a license for appraisers;

(4) maintain a registry of the names and addresses of people licensed under this chapter;

(5) keep records and all application materials submitted to the commissioner;

(6) conduct investigations;

(7) deny, revoke, and suspend licenses; and

(8) take other actions necessary to carry out the purposes of this chapter.

new text begin (b) When conducting an investigation pursuant to paragraph (a), clause (6), that includes
a review of an appraisal report for compliance with USPAP, the commissioner must have
the report reviewed by a real estate appraiser in accordance with USPAP standards 3 and
4.
new text end

Sec. 3.

Minnesota Statutes 2020, section 82B.19, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Out-of-state continuing education credit. new text end

new text begin (a) For purposes of this subdivision,
the following terms having the meanings given:
new text end

new text begin (1) "asynchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board;
new text end

new text begin (2) "classroom course" means an educational process where there is no geographic
separation between the student and the instructor; and
new text end

new text begin (3) "synchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board.
new text end

new text begin (b) Notwithstanding section 45.30, subdivisions 1 and 6, the commissioner must grant
a licensee continuing education credit for a classroom course completed outside of Minnesota
or a synchronous educational offering if:
new text end

new text begin (1) the course has been approved for continuing education credit by the regulator of
appraisers in at least one other state or United States territory; and
new text end

new text begin (2) the licensee provides the commissioner with:
new text end

new text begin (i) a request for credit for a continuing education course completed outside of Minnesota;
new text end

new text begin (ii) a certificate of successful course completion from the educator; and
new text end

new text begin (iii) a fee to be determined by the commissioner.
new text end

new text begin (c) The commissioner must grant a licensee the same number of continuing education
credits for the classroom course as the number approved by the out-of-state appraisal
regulatory authority. If other states have approved a different number of continuing education
credits for a course, the commissioner must grant a licensee credit for the highest number
of credits approved by another state.
new text end

new text begin (d) This subdivision does not apply to asynchronous educational offerings.
new text end

Sec. 4.

Minnesota Statutes 2020, section 82C.17, subdivision 2, is amended to read:

Subd. 2.

Evidence.

(a) An appraisal management company can evidence that the fees
paid to an appraiser were reasonable and customary through:

(1) objective third-party information, including, but not limited to, government agency
fee schedules or academic studies. An academic study used must exclude appraisal
assignments ordered by an appraisal management company deleted text begin . The commissioner may establish
a fee scheduled for use by an appraisal management company deleted text end ; or

(2) reviewing each of the following factors and making adjustments to recent fees paid
for appraisal services performed in the market area:

(i) the type of property appraised;

(ii) the scope of the appraisal work;

(iii) the time in which the appraisal service must be performed;

(iv) appraiser qualifications;

(v) appraiser experience and professional record; and

(vi) appraiser work quality.

(b) The fees paid for a complex appraisal assignment shall reflect the increased time,
difficulty, and scope of work required.

(c) An appraisal management company shall maintain written documentation describing
and substantiating all methods and information used to determine the customary and
reasonable fees required by this section.