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HF 2024

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/21/2021 10:11pm

KEY: stricken = removed, old language.
underscored = added, new language.

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A bill for an act
relating to commerce; modifying various provisions governing or administered
by the Department of Commerce; making technical changes; establishing a working
group; requiring reports; amending Minnesota Statutes 2020, sections 60A.71,
subdivision 7; 79.55, subdivision 10; 80G.06, subdivision 1; 82.57, subdivisions
1, 5; 82.62, subdivision 3; 82.81, subdivision 12; 82B.021, subdivision 18; 82B.11,
subdivision 3; 332.33, subdivision 3; 386.375, subdivision 3; proposing coding
for new law in Minnesota Statutes, chapters 80G; 332; repealing Minnesota Statutes
2020, section 45.017.

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

Section 1.

Minnesota Statutes 2020, section 60A.71, subdivision 7, is amended to read:


Subd. 7.

Duration; fees.

(a) Each applicant for a reinsurance intermediary license shall
pay to the commissioner a fee of $200 for an initial two-year license and a fee of $150 for
each renewal. Applications shall be submitted on forms prescribed by the commissioner.

(b) Initial licenses issued under this chapter are valid for a period not to exceed 24 months
and expire on October 31 of the renewal year assigned by the commissioner. Each renewal
reinsurance intermediary license is valid for a period of 24 months. deleted text beginLicensees who submit
renewal applications postmarked or delivered on or before October 15 of the renewal year
may continue to transact business whether or not the renewal license has been received by
November 1. Licensees who submit applications postmarked or delivered after October 15
of the renewal year must not transact business after the expiration date of the license until
the renewal license has been received.
deleted text end

(c) All fees are nonreturnable, except that an overpayment of any fee may be refunded
upon proper application.

Sec. 2.

Minnesota Statutes 2020, section 79.55, subdivision 10, is amended to read:


Subd. 10.

Duties of commissionernew text begin; reportnew text end.

deleted text begin The commissioner shall issue a report by
March 1 of each year, comparing the average rates charged by workers' compensation
insurers in the state to the pure premium base rates filed by the association, as reviewed by
the Rate Oversight Commission. The Rate Oversight Commission shall review the
commissioner's report and if the experience indicates that rates have not reasonably reflected
changes in pure premiums, the rate oversight commission shall recommend to the legislature
appropriate legislative changes to this chapter.
deleted text end

new text begin (a) By March 1 of each year, the commissioner must issue a report that evaluates the
competitiveness of the workers' compensation market in Minnesota, in order to evaluate
whether the competitive rating law is working.
new text end

new text begin (b) The report under this subdivision must (1) compare the average rates charged by
workers' compensation insurers in Minnesota with the pure premium base rates filed by the
association, and (2) provide market information, including but not limited to the number of
carriers, market shares, the loss-cost multipliers used by companies, and the residual market
and self-insurance.
new text end

new text begin (c) The commissioner must provide the report to the Rate Oversight Commission for
review. If after reviewing the report the Rate Oversight Commission concludes that concerns
exist regarding the competitiveness of the workers' compensation market in Minnesota, the
Rate Oversight Commission must recommend to the legislature appropriate modifications
to this chapter.
new text end

Sec. 3.

Minnesota Statutes 2020, section 80G.06, subdivision 1, is amended to read:


Subdivision 1.

Surety bond requirement.

new text begin(a) new text endEvery dealer shall maintain a current,
valid surety bond issued by a surety company admitted to do business in Minnesota in an
amount based on the transactionsnew text begin conducted with Minnesota consumersnew text end (purchases from
and sales to consumers at retail) during the 12-month period prior to registration, or renewal,
whichever is applicable.

new text begin (b) new text endThe amount of the surety bond shall be as specified in the table below:

Transaction Amount in Preceding
12-month Period
Surety Bond Required
deleted text begin $25,000deleted text endnew text begin $0new text end to $200,000
$25,000
$200,000.01 to $500,000
$50,000
$500,000.01 to $1,000,000
$100,000
$1,000,000.01 to $2,000,000
$150,000
Over $2,000,000
$200,000

Sec. 4.

new text begin [80G.11] NOTIFICATION TO COMMISSIONER.
new text end

new text begin A dealer must notify the commissioner of any dealer representative termination within
ten days of the termination if the termination is based in whole or in part on a violation of
this chapter.
new text end

Sec. 5.

Minnesota Statutes 2020, section 82.57, subdivision 1, is amended to read:


Subdivision 1.

Amounts.

The following fees shall be paid to the commissioner:

(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for each
renewal thereof;

(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each renewal
thereof;

(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 for each
renewal thereof;

(d) a fee of $150 for each initial corporate, limited liability company, or partnership
license, and a fee of $100 for each renewal thereof;

(e) a fee for payment to the education, research and recovery fund in accordance with
section 82.86;

(f) a fee of $20 for each transfer;

deleted text begin (g) a fee of $50 for license reinstatement;
deleted text end

deleted text begin (h)deleted text endnew text begin (g)new text end a fee of $20 for reactivating a corporate, limited liability company, or partnership
license; and

deleted text begin (i)deleted text endnew text begin (h)new text end in addition to the fees required under this subdivision, individual licensees under
clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge as
permitted under that section.

Sec. 6.

Minnesota Statutes 2020, section 82.57, subdivision 5, is amended to read:


Subd. 5.

Initial license expiration; fee reduction.

deleted text begin If an initial license issued under
subdivision 1, paragraph (a), (b), (c), or (d) expires less than 12 months after issuance, the
license fee shall be reduced by an amount equal to one-half the fee for a renewal of the
license.
deleted text end new text begin An new text end new text begin initial license issued under this chapter expires in the year that results in the
term of the license being at least 12 months, but no more than 24 months.
new text end

Sec. 7.

Minnesota Statutes 2020, section 82.62, subdivision 3, is amended to read:


Subd. 3.

Timely renewals.

A person deleted text beginwhose application for a license renewal has not
been timely submitted and
deleted text end who has not received notice of approval of renewal may not
continue to transact business either as a real estate broker, salesperson, or closing agent
after June 30 of the renewal year until approval of renewal is received. Application for
renewal of a license is timely submitted ifdeleted text begin:deleted text end new text beginall requirements for renewal, including continuing
education requirements, have been completed and reported pursuant to section 45.43,
subdivision 1.
new text end

deleted text begin (1) all requirements for renewal, including continuing education requirements, have
been completed by June 15 of the renewal year; and
deleted text end

deleted text begin (2) the application is submitted before the renewal deadline in the manner prescribed
by the commissioner, duly executed and sworn to, accompanied by fees prescribed by this
chapter, and containing any information the commissioner requires.
deleted text end

Sec. 8.

Minnesota Statutes 2020, section 82.81, subdivision 12, is amended to read:


Subd. 12.

Fraudulent, deceptive, and dishonest practices.

(a) Prohibitions. For the
purposes of section 82.82, subdivision 1, clause (b), the following acts and practices constitute
fraudulent, deceptive, or dishonest practices:

(1) act on behalf of more than one party to a transaction without the knowledge and
consent of all parties;

(2) act in the dual capacity of licensee and undisclosed principal in any transaction;

(3) receive funds while acting as principal which funds would constitute trust funds if
received by a licensee acting as an agent, unless the funds are placed in a trust account.
Funds need not be placed in a trust account if a written agreement signed by all parties to
the transaction specifies a different disposition of the funds, in accordance with section
82.82, subdivision 1;

(4) violate any state or federal law concerning discrimination intended to protect the
rights of purchasers or renters of real estate;

(5) make a material misstatement in an application for a license or in any information
furnished to the commissioner;

(6) procure or attempt to procure a real estate license for deleted text beginhimself or herselfdeleted text endnew text begin the procuring
individual
new text end or any person by fraud, misrepresentation, or deceit;

(7) represent membership in any real estate-related organization in which the licensee
is not a member;

(8) advertise in any manner that is misleading or inaccurate with respect to properties,
terms, values, policies, or services conducted by the licensee;

(9) make any material misrepresentation or permit or allow another to make any material
misrepresentation;

(10) make any false or misleading statements, or permit or allow another to make any
false or misleading statements, of a character likely to influence, persuade, or induce the
consummation of a transaction contemplated by this chapter;

(11) fail within a reasonable time to account for or remit any money coming into the
licensee's possession which belongs to another;

(12) commingle with deleted text beginhis or herdeleted text endnew text begin the individual'snew text end own money or property trust funds or
any other money or property of another held by the licensee;

(13) new text begina new text enddemand from a sellernew text begin fornew text end a commission deleted text begintodeleted text endnew text begin ornew text end compensationnew text begin tonew text end which the licensee
is not entitled, knowing that deleted text beginhe or shedeleted text endnew text begin the individualnew text end is not entitled to the commissionnew text begin ornew text end
compensation;

(14) pay or give money or goods of value to an unlicensed person for any assistance or
information relating to the procurement by a licensee of a listing of a property or of a
prospective buyer of a property (this item does not apply to money or goods paid or given
to the parties to the transaction);

(15) fail to maintain a trust account at all times, as provided by law;

(16) engage, with respect to the offer, sale, or rental of real estate, in an anticompetitive
activity;

(17) represent on advertisements, cards, signs, circulars, letterheads, or in any other
manner, that deleted text beginhe or shedeleted text endnew text begin the individualnew text end is engaged in the business of financial planning unless
deleted text begin he or shedeleted text endnew text begin the individualnew text end provides a disclosure document to the client. The document must
be signed by the client and a copy must be left with the client. The disclosure document
must contain the following:

(i) the basis of fees, commissions, or other compensation received by deleted text beginhim or herdeleted text endnew text begin an
individual
new text end in connection with rendering of financial planning services or financial counseling
or advice in the following language:

"My compensation may be based on the following:

(a) ... commissions generated from the products I sell you;

(b) ... fees; or

(c) ... a combination of (a) and (b). [Comments]";

(ii) the name and address of any company or firm that supplies the financial services or
products offered or sold by deleted text beginhim or herdeleted text endnew text begin an individualnew text end in the following language:

"I am authorized to offer or sell products and/or services issued by or through the
following firm(s):

[List]

The products will be traded, distributed, or placed through the clearing/trading firm(s)
of:

[List]";

(iii) the license(s) held by the person under this chapter or chapter 60A or 80A in the
following language:

"I am licensed in Minnesota as a(n):

(a) ... insurance agent;

(b) ... securities agent or broker/dealer;

(c) ... real estate broker or salesperson;

(d) ... investment adviser"; and

(iv) the specific identity of any financial products or services, by category, for example
mutual funds, stocks, or limited partnerships, the person is authorized to offer or sell in the
following language:

"The license(s) entitles me to offer and sell the following products and/or services:

(a) ... securities, specifically the following: [List];

(b) ... real property;

(c) ... insurance; and

(d) ... other: [List]."

(b) Determining violation. A licensee shall be deemed to have violated this section if
the licensee has been found to have violated sections 325D.49 to 325D.66, by a final decision
or order of a court of competent jurisdiction.

(c) Commissioner's authority. Nothing in this section limits the authority of the
commissioner to take actions against a licensee for fraudulent, deceptive, or dishonest
practices not specifically described in this section.

Sec. 9.

Minnesota Statutes 2020, section 82B.021, subdivision 18, is amended to read:


Subd. 18.

Licensed real property appraiser.

"Licensed real property appraiser" means
an individual licensed under this chapter to perform appraisals on noncomplex one-family
to four-family residential units or agricultural property having a transactional value of less
than $1,000,000 and complex one-family to four-family residential units or agricultural
property having a transactional value of less than deleted text begin$250,000deleted text endnew text begin $400,000new text end.

Sec. 10.

Minnesota Statutes 2020, section 82B.11, subdivision 3, is amended to read:


Subd. 3.

Licensed residential real property appraiser.

A licensed residential real
property appraiser may appraise noncomplex residential property or agricultural property
having a transaction value less than $1,000,000 and complex residential or agricultural
property having a transaction value less than deleted text begin$250,000deleted text endnew text begin $400,000new text end.

Sec. 11.

Minnesota Statutes 2020, section 332.33, subdivision 3, is amended to read:


Subd. 3.

Termnew text begin and feesnew text end.

Licenses issued or renewed and registrations received by the
commissioner of commerce under sections 332.31 to 332.44 shall expire on June 30. Each
collection agency license shall plainly state the name and business address of the licensee,
and shall be posted in a conspicuous place in the office where the business is transacted.
The fee for each collection agency license is $500, and renewal is $400. The fee for each
collector registration and renewal is $10new text begin, which entitles the individual collector to work at
a licensee's business location or in another location as provided under subdivision 5b. An
additional branch license is not required for a location used under subdivision 5b
new text end. A collection
agency licensee who desires to carry on business in more than one place shall procure a
license for each place where the business is to be conducted.

Sec. 12.

new text begin [332.61] INFORMATIVE DISCLOSURE.
new text end

new text begin A lead generator must prominently make the following disclosure on all print, electronic,
and nonprint solicitations, including advertising on websites, radio, or television: "This
company does not actually provide any of the credit services you are seeking. We ONLY
refer you to companies that want to provide some or all of those services."
new text end

Sec. 13.

Minnesota Statutes 2020, section 386.375, subdivision 3, is amended to read:


Subd. 3.

Consumer education information.

(a) A person other than the mortgagor or
fee owner who transfers or offers to transfer an abstract of title shall present to the mortgagor
or fee owner basic information in plain English about abstracts of title. This information
must be sent in a form prepared and approved by the commissioner of commerce and must
contain at least the following items:

(1) a definition and description of abstracts of title;

(2) an explanation that holders of abstracts of title must maintain it with reasonable care;

(3) an approximate cost or range of costs to replace a lost or damaged abstract of title;new text begin
and
new text end

deleted text begin (4) an explanation that abstracts of title may be required to sell, finance, or refinance
real estate; and
deleted text end

deleted text begin (5)deleted text endnew text begin (4)new text end an explanation of options for storage of abstracts.

(b) The commissioner shall prepare the form for use under this subdivision as soon as
possible. This subdivision does not apply until 60 days after the form is approved by the
commissioner.

(c) A person violating this subdivision is subject to a penalty of $200 for each violation.

Sec. 14. new text beginCONSUMER DEBT COLLECTION LANGUAGE BARRIER WORKING
GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce shall convene a working
group to review language barriers and the effect on creditors, debt collectors, and limited
English proficient communities.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The working group consists of the following members:
new text end

new text begin (1) the commissioner of commerce or a designee;
new text end

new text begin (2) one member appointed by the Attorney General's Office;
new text end

new text begin (3) two members of the public representing creditors or debt collectors, appointed by
the industry and subject to approval by the commissioner of commerce;
new text end

new text begin (4) two members of the public representing consumer rights, appointed by consumer
rights advocate organizations and subject to approval by the commissioner of commerce;
new text end

new text begin (5) one member appointed by the Council for Minnesotans of African Heritage;
new text end

new text begin (6) one member appointed by the Minnesota Council on Latino Affairs;
new text end

new text begin (7) one member appointed by the Council on Asian-Pacific Minnesotans; and
new text end

new text begin (8) two members appointed by the Indian Affairs Council.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin (a) By January 1, 2022, the commissioner of commerce shall report
to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over commerce with the working group's recommendations
to address language barriers between creditors, debt collectors, and consumers.
new text end

new text begin (b) The working group shall examine:
new text end

new text begin (1) current practices for communicating with consumers in the consumer's preferred
language when attempting to collect a debt or enforce a lien;
new text end

new text begin (2) the availability of translation services or a written glossary of financial terms for
consumers whose primary language is not English; and
new text end

new text begin (3) state and federal laws involving these issues.
new text end

Sec. 15. new text beginCOLLECTION AGENCY EMPLOYEES; WORK FROM HOME.
new text end

new text begin An employee of a collection agency licensed under Minnesota Statutes, chapter 332,
may work from a location other than the licensee's business location if the licensee and
employee comply with all the requirements of Minnesota Statutes, section 332.33, that
would apply if the employee were working at the business location.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section expires May 31, 2022.
new text end

Sec. 16. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 45.017, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H2024-1

45.017 MEDICAL MALPRACTICE INSURANCE REPORT.

(a) The commissioner of commerce shall provide to the legislature annually a brief written report on the status of the market for medical malpractice insurance in Minnesota. The report must summarize, interpret, explain, and analyze information on that subject available to the commissioner, through annual statements filed by insurance companies, information obtained under paragraph (c), and other sources.

(b) The annual report must consider, to the extent possible, using definitions developed by the commissioner, Minnesota-specific data on market shares; premiums received; amounts paid to settle claims that were not litigated, claims that were settled after litigation began, and claims that were litigated to court judgment; amounts spent on processing, investigation, litigation, and otherwise handling claims; other sales and administrative costs; and the loss ratios of the insurers.

(c) Each insurance company that provides medical malpractice insurance in this state shall, no later than June 1 each year, file with the commissioner of commerce, on a form prescribed by the commissioner and using definitions developed by the commissioner, the Minnesota-specific data referenced in paragraph (b), other than market share, for the previous calendar year for that insurance company, shown separately for various categories of coverages including, if possible, hospitals, medical clinics, nursing homes, physicians who provide emergency medical care, obstetrician gynecologists, and ambulance services. An insurance company need not comply with this paragraph if its direct premium written in the state for the previous calendar year is less than $2,000,000.