1.1 	A bill for an act
1.2 	relating to commerce; providing for the licensing and regulation of certain 
1.3 	persons; establishing prelicense and continuing education requirements;
1.4 	amending Minnesota Statutes 2008, sections 45.22; 45.23; 60K.31, by adding a 
1.5 	subdivision; 60K.36, subdivision 4, by adding a subdivision; 60K.37, by adding 
1.6 	a subdivision; 60K.55, subdivision 2; 60K.56; 72B.02, subdivisions 2, 5, 6, 11, 
1.7 	by adding subdivisions; 72B.03; 72B.05; 72B.06; 72B.08, subdivisions 1, 2, 4; 
1.8 	72B.135, subdivisions 1, 2, 3; 82.32; 82B.05, subdivision 1; 82B.08, by adding 
1.9 	subdivisions; 82B.09, by adding a subdivision; 82B.10; 82B.13, subdivisions 
1.10 	4, 5, 6; 82B.19, subdivisions 1, 2; 82B.20, by adding a subdivision; proposing 
1.11 	coding for new law in Minnesota Statutes, chapters 45; 60K; 72B; 82; 82B; 
1.12 	repealing Minnesota Statutes 2008, sections 72B.02, subdivision 12; 72B.04; 
1.13 	82B.02; Minnesota Rules, parts 2808.0100; 2808.1000; 2808.1100; 2808.1200; 
1.14 	2808.1300; 2808.1400; 2808.1500; 2808.1600; 2808.1700; 2808.2000; 
1.15 	2808.2100; 2808.6000; 2808.7000; 2808.7100; 2809.0010; 2809.0020; 
1.16 	2809.0030; 2809.0040; 2809.0050; 2809.0060; 2809.0070; 2809.0080; 
1.17 	2809.0090; 2809.0100; 2809.0110; 2809.0120; 2809.0130; 2809.0140; 
1.18 	2809.0150; 2809.0160; 2809.0170; 2809.0180; 2809.0190; 2809.0200; 
1.19 	2809.0210; 2809.0220.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	Section 1. Minnesota Statutes 2008, section 45.22, is amended to read:
1.22 	45.22 LICENSE EDUCATION APPROVAL.
1.23 	License education courses must be approved in advance by the commissioner. Each 
1.24 	sponsor education provider who offers a license education course must be approved by 
1.25 	the commissioner. Each approved sponsor education provider must have at least one 
1.26 	coordinator who meets the criteria specified in Minnesota Rules, chapter 2809 this chapter, 
1.27 	and who is responsible for supervising the educational program and assuring compliance 
1.28 	with all laws and rules. "Sponsor" means any person or entity offering approved education.
2.1 	For courses with an initial approval date on or before December 31, 2000, approval 
2.2 	will expire on April 30, 2006. For courses with an initial approval date after January 1, 
2.3 	2001, but before August 1, 2005, approval will expire on April 30, 2007.

2.4 	Sec. 2. Minnesota Statutes 2008, section 45.23, is amended to read:
2.5 	45.23 LICENSE EDUCATION FEES.
2.6 	The following fees must be paid to the commissioner:
2.7 	(1) initial course approval, $10 for each hour or fraction of one hour of education 
2.8 	course approval sought. Initial course approval expires on the last day of the 24th month 
2.9 	after the course is approved;
2.10 	(2) renewal of course approval, $10 per course. Renewal of course approval expires 
2.11 	on the last day of the 24th month after the course is renewed;
2.12 	(3) initial sponsor education provider approval, $100. Initial sponsor education 
2.13 	provider approval issued under this section is valid for a period not to exceed 24 months 
2.14 	and expires on January 31 of the renewal year assigned by the commissioner. Active 
2.15 	sponsors education providers who have at least one approved coordinator as of the 
2.16 	effective date of this section are deemed to be approved sponsors education providers
2.17 	and are not required to submit an initial application for sponsor education provider
2.18 	approval; and
2.19 	(4) renewal of sponsor education provider approval, $10. Each renewal of sponsor
2.20 	education provider approval is valid for a period of 24 months. Active sponsors education 
2.21 	providers who have at least one approved coordinator as of the effective date of this 
2.22 	section will have an expiration date of January 31, 2008.

2.23 	Sec. 3. [45.25] DEFINITIONS.
2.24 		Subdivision 1.Scope. As used in sections 45.25 to 45.43, the terms defined in 
2.25 	this section have the meanings given them.
2.26 		Subd. 2.Appropriate and related knowledge. "Appropriate and related 
2.27 	knowledge" means facts, information, or principles that are clearly relevant to the licensee 
2.28 	in performing responsibilities under a license. These facts, information, or principles must 
2.29 	convey substantive and procedural knowledge as it relates to postlicensing issues and must 
2.30 	be relevant to the technical aspects of a particular area of continuing education.
2.31 		Subd. 3.Classroom hour. "Classroom hour" means a 50-minute hour. Breaks must 
2.32 	not be accumulated in order to dismiss the class early. Classes must not be offered to any 
2.33 	one student for longer than eight hours in one day, excluding meal breaks.
2.34 		Subd. 4.Commissioner. "Commissioner" means the commissioner of commerce.
3.1 		Subd. 5.Coordinator. "Coordinator" means an individual who is responsible for 
3.2 	monitoring approved educational offerings.
3.3 		Subd. 6.Education provider. "Education provider" means a person offering or 
3.4 	providing approved education.
3.5 		Subd. 7.Encrypted online examination. "Encrypted online examination" means 
3.6 	an examination offered over the Internet that is (1) inaccessible to anyone but the student 
3.7 	taking the examination, who must have a unique login and password to see it, and (2) 
3.8 	protected with security measures that make it unreadable if it is electronically stolen. In 
3.9 	addition, the student must not have the ability to download and save the examination in 
3.10 	any readable form.
3.11 		Subd. 8.Instructor. "Instructor" means an individual who (1) lectures in an 
3.12 	approved educational offering, or (2) creates an interactive Internet or self-study course.
3.13 		Subd. 9.Licensee. "Licensee" means a person licensed by the Department of 
3.14 	Commerce for whom an examination is required before licensure.
3.15 		Subd. 10.Overpayment. "Overpayment" means any payment of money in excess 
3.16 	of a statutory fee.
3.17 		Subd. 11.Person. "Person" means a natural person, firm, institution, partnership, 
3.18 	corporation, limited liability company, limited liability partnership, or association.
3.19 		Subd. 12.Proctor. "Proctor" means a disinterested third party with no conflict of 
3.20 	interest who verifies a student's identity and processes an affidavit testifying that the 
3.21 	student received no outside assistance with the course or examination.
3.22 		Subd. 13.Professional designation. "Professional designation" means a written, 
3.23 	proctored, and graded examination, the passage of which leads to a bona fide professional 
3.24 	designation used by licensees.

3.25 	Sec. 4. [45.26] PAYMENT OF FEES.
3.26 		Subdivision 1.Manner of payment. All fees must be paid by check, draft, or other 
3.27 	negotiable or nonnegotiable instrument or order of withdrawal that is drawn against funds 
3.28 	held by a financial institution. Cash will not be accepted.
3.29 		Subd. 2.Refunds. An overpayment of a course or coordinator approval fee 
3.30 	must be refunded within 90 days after a letter requesting the refund is received by the 
3.31 	commissioner and signed by the person making the overpayment.
3.32 	Refunds must not be given for other than overpayment of fees. A request for a 
3.33 	refund of an overpayment must be received by the commissioner within six months of 
3.34 	the date of deposit or it will be forfeited.

4.1 	Sec. 5. [45.27] FORMS.
4.2 	All forms required by this chapter must be made in the form set forth by the 
4.3 	commissioner. Forms may be duplicated, but must be readable. Computer generated lists 
4.4 	and forms with the same information as required in existing forms must be accepted by 
4.5 	the department if prior approval is granted by the department.

4.6 	Sec. 6. [45.28] TEXTBOOKS REQUIRED.
4.7 	All prelicense courses must require the use of a textbook or a detailed workbook. 
4.8 	The textbook or workbook must cover the subject matter of the course and must be current.

4.9 	Sec. 7. [45.29] INITIAL EDUCATION.
4.10 		Subdivision 1.Content. Successful completion of prelicense education includes 
4.11 	full-time attendance throughout the course, completion of required assignments or reading 
4.12 	material if applicable, and passage of an examination designed by the education provider 
4.13 	that is sufficiently comprehensive to measure the student's knowledge of all aspects of 
4.14 	the course.
4.15 	Prelicensing courses may include coverage of subject matter not prescribed in this 
4.16 	section. However, the subject matter must be presented in addition to, and must not be 
4.17 	substituted for, the course content or hours specified for the particular industry. A student 
4.18 	must not be required to pass an examination, or part of an examination, on this material in 
4.19 	order to be able to obtain a license.
4.20 		Subd. 2.Course submission. Courses must be submitted by the coordinator, 
4.21 	instructor, or education provider at least 30 days before the initial offering of the course.

4.22 	Sec. 8. [45.30] CONTINUING EDUCATION.
4.23 		Subdivision 1.Content. Continuing education consists of approved courses that 
4.24 	impart appropriate and related knowledge in the field for which approval is requested. The 
4.25 	burden of demonstrating that courses impart appropriate and related knowledge is upon 
4.26 	the person seeking approval or credit. The commissioner may approve any educational 
4.27 	offering approved by the regulatory agency of another state if it does not conflict 
4.28 	with Minnesota law, and any courses leading to a nationally recognized professional 
4.29 	designation used by licensees regulated by this chapter.
4.30 		Subd. 2.Examinations. Course examinations are required for interactive Internet 
4.31 	courses but are not required for other continuing education courses unless they are 
4.32 	required by the education provider. When certain prelicense courses are permitted to be 
5.1 	used for continuing education, the licensee must pass the same examination as is required 
5.2 	for those taking the course for prelicensing.
5.3 		Subd. 3.Textbooks. Textbooks are not required to be used for continuing education 
5.4 	courses unless the course is also approved as a prelicense course. If textbooks are not 
5.5 	used, students are to be provided with a syllabus containing, at a minimum, the course 
5.6 	title, the times and dates of the course offering, the names and addresses or telephone 
5.7 	numbers of the course coordinator and instructor, and a detailed outline of the subject 
5.8 	materials to be covered. Any written or printed material given to students must be of 
5.9 	readable quality and contain accurate and current information.
5.10 		Subd. 4.Credit earned. (a) Upon completion of approved courses, students must 
5.11 	earn one hour of continuing education credit for each hour approved by the commissioner. 
5.12 	Continuing education courses must be attended in their entirety in order to receive credit 
5.13 	for the number of approved hours.
5.14 	(b) Qualified instructors will earn three hours of continuing education credit for each 
5.15 	classroom hour of approved instruction that they deliver (1) independently, or (2) as 
5.16 	part of a team presentation in a course of two hours or less, if they attend the course in 
5.17 	its entirety. No more than half of the continuing education hours required for renewal of 
5.18 	a license may be earned as a qualified instructor at the rate of three hours of continuing 
5.19 	education credit for each classroom hour of approved instruction. No credit will be earned 
5.20 	if the licensee has previously obtained credit for the same course as either a student or 
5.21 	instructor during the same licensing period.
5.22 		Subd. 5.Nonapproved courses for continuing education. The following courses 
5.23 	will not be approved for credit:
5.24 	(1) courses designed solely to prepare students for passing a license examination;
5.25 	(2) courses in mechanical office or business skills, including typing, speed reading, 
5.26 	or other machines or equipment. Computer skills courses are allowed, if appropriate and 
5.27 	related to the industry to which the courses are directed;
5.28 	(3) courses in sales promotion, including meetings held in conjunction with the 
5.29 	general business of the licensee;
5.30 	(4) courses in motivation, salesmanship, psychology, time management, or 
5.31 	communication, except as prescribed in prelicense training;
5.32 	(5) courses related to office management or intended to improve the operation of the 
5.33 	licensee's business; and
5.34 	(6) courses that are primarily intended to impart knowledge of specific products of 
5.35 	specific companies, if the use of the product or products relates to the sales promotion or 
5.36 	marketing of one or more of the products discussed.
6.1 		Subd. 6.Course approval. (a) Courses must be approved by the commissioner in 
6.2 	advance. A course that is required by federal criteria or a reciprocity agreement to receive 
6.3 	a substantive review will be approved or disapproved on the basis of its compliance with 
6.4 	the provisions of laws and rules relating to the appropriate industry. At the commissioner's 
6.5 	discretion, a course that is not required by federal criteria or a reciprocity agreement to 
6.6 	receive a substantive review may be approved based on a qualified provider's certification 
6.7 	on a form specified by the commissioner that the course complies with the provisions of 
6.8 	this chapter and the laws and rules relating to the appropriate industry. For the purposes 
6.9 	of this section, a "qualified provider" is one of the following: (1) a degree-granting 
6.10 	institution of higher learning located within this state; (2) a private school licensed by the 
6.11 	Minnesota Office of Higher Education; or (3) when conducting courses for its members, a 
6.12 	bona fide trade association that staffs and maintains in this state a physical location that 
6.13 	contains course and student records and that has done so for not less than three years. 
6.14 	The commissioner may review any approved course and may cancel its approval with 
6.15 	regard to all future offerings. The commissioner must make the final determination as to 
6.16 	accreditation and assignment of credit hours for courses. Courses must be at least one hour 
6.17 	in length, except courses for real estate appraisers must be at least two hours in length.
6.18 	Individuals wishing to receive credit for continuing education courses that have not 
6.19 	been previously approved may submit the course information for approval. Courses 
6.20 	must be in compliance with the laws and rules governing the types of courses that will 
6.21 	and will not be approved.
6.22 	Approval will not include time spent on meals or other unrelated activities.
6.23 	(b) Courses must be submitted at least 30 days before the initial proposed course 
6.24 	offering.
6.25 	(c) Approval must be granted for a subsequent offering of identical continuing 
6.26 	education courses without requiring a new application. The commissioner must deny 
6.27 	future offerings of courses if they are found not to be in compliance with the laws relating 
6.28 	to course approval.
6.29 	(d) When either the content of an approved course or its method of instruction 
6.30 	changes, the course is no longer approved for license education credit. A new application 
6.31 	must be submitted for the changed course if the education provider intends to offer it for 
6.32 	license education credit.
6.33 		Subd. 7.Courses open to all. All course offerings must be open to any interested 
6.34 	individuals. Access may be restricted by the education provider based on class size only, 
6.35 	except that access to a course offering sponsored by, offered by, or affiliated with an 
6.36 	insurance company or agency may be restricted to agents of the company or agency. 
7.1 	Courses must not be approved if attendance is restricted to any particular group of people, 
7.2 	except for company-sponsored courses allowed by statute.

7.3 	Sec. 9. [45.305] PRELICENSE EDUCATION COURSES OFFERED OVER 
7.4 	THE INTERNET.
7.5 		Subdivision 1.Appraiser and insurance Internet prelicense courses. The design 
7.6 	and delivery of an appraiser prelicense education course or an insurance prelicense 
7.7 	education course must be approved by the International Distance Education Certification 
7.8 	Center (IDECC) before the course is submitted for commissioner's approval.
7.9 		Subd. 2.Real estate Internet prelicense courses. The design and delivery of a real 
7.10 	estate prelicense education course must be approved by either IDECC or the Association 
7.11 	of Real Estate License Law Officials before the course is submitted for the commissioner's 
7.12 	approval.
7.13 		Subd. 3.Academic credit Internet courses. Subdivisions 1 and 2 do not apply 
7.14 	to Internet prelicense courses offered for academic credit by an accredited college, 
7.15 	community college, or university that offers distance education programs and is approved 
7.16 	or accredited by the Commission on Colleges, a regional or national accreditation 
7.17 	association, or by an accrediting agency that is recognized by the United States Secretary 
7.18 	of Education. 
7.19 		Subd. 4.Interactive Internet course requirements. An interactive Internet 
7.20 	prelicense education course must:
7.21 	(1) specify the minimum system requirements;
7.22 	(2) provide encryption that ensures that all personal information, including the 
7.23 	student's name, address, and credit card number, cannot be read as it passes across the 
7.24 	Internet;
7.25 	(3) include technology to guarantee seat time;
7.26 	(4) include a high level of interactivity;
7.27 	(5) include graphics that reinforce the content;
7.28 	(6) include the ability for the student to contact an instructor within a reasonable 
7.29 	amount of time;
7.30 	(7) include the ability for the student to get technical support within a reasonable 
7.31 	amount of time;
7.32 	(8) include a statement that the student's information will not be sold or distributed 
7.33 	to any third party without prior written consent of the student. Taking the course does not 
7.34 	constitute consent;
8.1 	(9) be available 24 hours a day, seven days a week, excluding minimal down time 
8.2 	for updating and administration, except that this provision does not apply to live courses 
8.3 	taught by an actual instructor and delivered over the Internet;
8.4 	(10) provide viewing access to the online course at all times to the commissioner, 
8.5 	excluding minimal down time for updating and administration;
8.6 	(11) include a process to authenticate the student's identity;
8.7 	(12) inform the student and the commissioner how long after its purchase a course 
8.8 	will be accessible;
8.9 	(13) inform the student that license education credit will not be awarded for taking 
8.10 	the course after it loses its status as an approved course;
8.11 	(14) provide clear instructions on how to navigate through the course;
8.12 	(15) provide automatic bookmarking at any point in the course;
8.13 	(16) provide questions after each unit or chapter that must be answered before the 
8.14 	student can proceed to the next unit or chapter;
8.15 	(17) include a reinforcement response when a quiz question is answered correctly;
8.16 	(18) include a response when a quiz question is answered incorrectly;
8.17 	(19) include a comprehensive final examination covering all required topics;
8.18 	(20) allow the student to go back and review any unit at any time, except during the 
8.19 	final examination;
8.20 	(21) provide a course evaluation at the end of the course. At a minimum, the 
8.21 	evaluation must ask the student to report any difficulties caused by the online education 
8.22 	delivery method; and
8.23 	(22) provide a completion certificate when the course and exam have been completed 
8.24 	and the provider has verified the completion. Electronic certificates are sufficient.
8.25 		Subd. 5.Final examination. The final examination for a prelicense education 
8.26 	course offered over the Internet must be monitored by a proctor who certifies that the 
8.27 	student took the examination. The exam must be either a paper examination or an 
8.28 	encrypted online examination. The student must not be allowed to review the course 
8.29 	content once the examination has begun.

8.30 	Sec. 10. [45.306] CONTINUING EDUCATION COURSES OFFERED OVER 
8.31 	THE INTERNET.
8.32 		Subdivision 1.Appraiser Internet continuing education courses. The design and 
8.33 	delivery of an appraiser continuing education course must be approved by the International 
8.34 	Distance Education Certification Center (IDECC) before the course is submitted for the 
8.35 	commissioner's approval.
9.1 		 Subd. 2.Interactive Internet course requirements. An interactive Internet 
9.2 	continuing education course must:
9.3 	(1) specify the minimum system requirements;
9.4 	(2) provide encryption that ensures that all personal information, including the 
9.5 	student's name, address, and credit card number, cannot be read as it passes across the 
9.6 	Internet; 
9.7 	(3) include technology to guarantee seat time;
9.8 	(4) include a high level of interactivity;
9.9 	(5) include graphics that reinforce the content;
9.10 	(6) include the ability for the student to contact an instructor within a reasonable 
9.11 	amount of time;
9.12 	(7) include the ability for the student to get technical support within a reasonable 
9.13 	amount of time;
9.14 	(8) include a statement that the student's information will not be sold or distributed 
9.15 	to any third party without prior written consent of the student. Taking the course does not 
9.16 	constitute consent;
9.17 	(9) be available 24 hours a day, seven days a week, excluding minimal down time 
9.18 	for updating and administration, except that this provision does not apply to live courses 
9.19 	taught by an actual instructor and delivered over the Internet;
9.20 	(10) provide viewing access to the online course at all times to the commissioner, 
9.21 	excluding minimal down time for updating and administration;
9.22 	(11) include a process to authenticate the student's identity;
9.23 	(12) inform the student and the commissioner how long after its purchase a course 
9.24 	will be accessible;
9.25 	(13) inform the student that license education credit will not be awarded for taking 
9.26 	the course after it loses its status as an approved course;
9.27 	(14) provide clear instructions on how to navigate through the course;
9.28 	(15) provide automatic bookmarking at any point in the course;
9.29 	(16) provide questions after each unit or chapter that must be answered before the 
9.30 	student can proceed to the next unit or chapter;
9.31 	(17) include a reinforcement response when a quiz question is answered correctly;
9.32 	(18) include a response when a quiz question is answered incorrectly;
9.33 	(19) include a final examination;
9.34 	(20) allow the student to go back and review any unit at any time, except during the 
9.35 	final examination;
10.1 	(21) provide a course evaluation at the end of the course. At a minimum, the 
10.2 	evaluation must ask the student to report any difficulties caused by the online education 
10.3 	delivery method; and
10.4 	(22) provide a completion certificate when the course and exam have been completed 
10.5 	and the provider has verified the completion. Electronic certificates are sufficient.
10.6 		Subd. 3.Final examination. The final examination must be either an encrypted 
10.7 	online examination or a paper examination that is monitored by a proctor who certifies that 
10.8 	the student took the examination. The student must not be allowed to review the course 
10.9 	content once the examination has begun.

10.10 	Sec. 11. [45.307] EDUCATION PROVIDER.
10.11 	A person applying for approval as an education provider must make available upon 
10.12 	request such records and data required by the commissioner to administer the provisions 
10.13 	and further the purposes of this chapter.

10.14 	Sec. 12. [45.31] COURSE COORDINATOR.
10.15 		Subdivision 1.Requirement. Each course of study must have at least one 
10.16 	coordinator, approved by the commissioner, who is responsible for supervising the 
10.17 	program and assuring compliance with all laws and rules. Education providers may engage 
10.18 	an additional coordinator, approved for their providership, in order to assist the coordinator 
10.19 	or to act as a substitute for the coordinator in the event of an emergency or illness.
10.20 		Subd. 2.Approval. (a) The commissioner must approve as a coordinator a person 
10.21 	meeting one or more of the following criteria: at least three years of full-time experience 
10.22 	in the administration of an education program during the five-year period immediately 
10.23 	before the date of application, or a degree in education plus two years experience during 
10.24 	the immediately preceding five-year period in one of the regulated industries for which 
10.25 	courses are being approved, or a minimum of five years experience within the previous six 
10.26 	years in the regulated industry for which courses are held. A person applying for approval 
10.27 	as a course coordinator must make available upon request such records and data required 
10.28 	by the commissioner to administer the provisions and further the purposes of this chapter. 
10.29 	(b) Coordinator approval may not be transferred to an individual who has not 
10.30 	already been approved as an additional coordinator for the applicable license type for 
10.31 	the providership in question. An individual must be approved as a coordinator by the 
10.32 	commissioner before acting on behalf of an approved education provider.
10.33 		Subd. 3.Responsibilities. A coordinator is responsible for:
11.1 	(1) assuring compliance with all laws and rules relating to educational offerings 
11.2 	governed by the commissioner;
11.3 	(2) assuring that students are provided with current and accurate information relating 
11.4 	to the laws and rules governing their licensed activity;
11.5 	(3) supervising and evaluating courses and instructors. Supervision includes 
11.6 	assuring, especially when a course will be taught by more than one instructor, that all 
11.7 	areas of the curriculum are addressed without redundancy and that continuity is present 
11.8 	throughout the entire course;
11.9 	(4) ensuring that instructors are qualified to teach the course offering;
11.10 	(5) furnishing the commissioner, upon request, with copies of course and instructor 
11.11 	evaluations and qualifications of instructors. Evaluations must be completed by students 
11.12 	and coordinators;
11.13 	(6) investigating complaints related to course offerings and instructors and 
11.14 	forwarding a copy of the written complaints to the Department of Commerce;
11.15 	(7) maintaining accurate records relating to course offerings, instructors, tests taken 
11.16 	by students, and student attendance for a period of three years from the date on which 
11.17 	the course was completed. These records must be made available to the commissioner 
11.18 	upon request. In the event that an education provider ceases operation for any reason, the 
11.19 	coordinator is responsible for maintaining the records or providing a custodian for the 
11.20 	records acceptable to the commissioner. The coordinator must notify the commissioner 
11.21 	of the name and address of that person. In order to be acceptable to the commissioner, 
11.22 	custodians must agree to make copies of acknowledgments available to students at a 
11.23 	reasonable fee. Under no circumstances will the commissioner act as custodian of the 
11.24 	records;
11.25 	(8) ensuring that the coordinator is available to instructors and students throughout 
11.26 	course offerings and providing to the students and instructor the name of the coordinator 
11.27 	and a telephone number at which the coordinator can be reached;
11.28 	(9) attending workshops or instructional programs as reasonably required by the 
11.29 	commissioner;
11.30 	(10) providing course completion certificates within ten days of, but not before, 
11.31 	completion of the entire course. Course completion certificates must be completed in 
11.32 	their entirety. A coordinator may require payment of the course tuition as a condition for 
11.33 	receiving the course completion certificate;
11.34 	(11) notifying the commissioner immediately of any change in an application for the 
11.35 	course, coordinator, or instructor approval application; and
12.1 	(12) in conjunction with the instructor, assuring and certifying attendance of students 
12.2 	enrolled in courses.

12.3 	Sec. 13. [45.32] INSTRUCTORS.
12.4 		Subdivision 1.Requirement. Each course of study, except self-study courses, 
12.5 	must have an instructor who is qualified by education, training, or experience to ensure 
12.6 	competent instruction. In the case of a self-study course, this requirement applies to 
12.7 	the author of the course material. Failure to have only qualified instructors teach at an 
12.8 	approved course offering will result in loss of course approval. A person applying for 
12.9 	approval as an instructor must make available upon request such records and data required 
12.10 	by the commissioner to administer the provisions and further the purposes of this chapter.
12.11 		Subd. 2.Qualification for continuing education instructors. Qualified continuing 
12.12 	education instructors must have one of the following qualifications:
12.13 	(1) a four-year degree in any area plus two years practical experience in the subject 
12.14 	area being taught;
12.15 	(2) five years of practical experience in the subject area being taught; or
12.16 	(3) a college or graduate degree in the subject area being taught.
12.17 		Subd. 3.Qualifications for prelicensing instructors. Qualified prelicense 
12.18 	instructors must have one of the following qualifications:
12.19 	(1) a four-year degree in the industry for which the course is being taught;
12.20 	(2) a four-year degree with three years full-time experience in the industry for which 
12.21 	the course is being taught;
12.22 	(3) a four-year degree with three years full-time experience in the business or 
12.23 	profession relating to the subject being taught;
12.24 	(4) a postgraduate degree and completion of 45 hours of continuing education in the 
12.25 	industry for which the course is being taught;
12.26 	(5) a two-year degree in the industry for which the education is being given and 
12.27 	completion of 45 hours of continuing education in the industry for which the course is 
12.28 	being taught;
12.29 	(6) a two-year degree or certificate with five years full-time experience in the 
12.30 	industry for which the course is being taught;
12.31 	(7) a degree or certificate with five years full-time experience in the business or 
12.32 	profession relating to the subject being taught; or
12.33 	(8) eight years of experience in the subject area being taught, gained in the eight 
12.34 	years immediately preceding the first course offering taught.
12.35 		Subd. 4.Responsibilities. Approved instructors are responsible for:
13.1 	(1) compliance with all laws and rules relating to industry education;
13.2 	(2) providing students with current and accurate information;
13.3 	(3) maintaining an atmosphere conducive to learning in the classroom;
13.4 	(4) in conjunction with the coordinator, assuring and certifying attendance of 
13.5 	students enrolled in courses;
13.6 	(5) providing assistance to students and responding to questions relating to course 
13.7 	materials; and
13.8 	(6) attending the workshops or instructional programs that are required by the 
13.9 	commissioner.

13.10 	Sec. 14. [45.33] PROHIBITED PRACTICES FOR COORDINATORS AND 
13.11 	INSTRUCTORS.
13.12 		Subdivision 1.Prohibitions. In connection with an approved course, coordinators 
13.13 	and instructors must not:
13.14 	(1) recommend or promote the services or practices of a particular business;
13.15 	(2) encourage or recruit individuals to engage the services of, or become associated 
13.16 	with, a particular business;
13.17 	(3) use materials, clothing, or other evidences of affiliation with a particular entity;
13.18 	(4) require students to participate in other programs or services offered by the 
13.19 	instructor, coordinator, or education provider;
13.20 	(5) attempt, either directly or indirectly, to discover questions or answers on an 
13.21 	examination for a license;
13.22 	(6) disseminate to any other person specific questions, problems, or information 
13.23 	known or believed to be included in licensing examinations;
13.24 	(7) misrepresent any information submitted to the commissioner;
13.25 	(8) fail to cover, or ensure coverage of, all points, issues, and concepts contained in 
13.26 	the course outline approved by the commissioner during the approved instruction; and 
13.27 	(9) issue inaccurate course completion certificates.
13.28 		Subd. 2.Notification of disciplinary action. Coordinators must notify the 
13.29 	commissioner within ten days of a felony or gross misdemeanor conviction or of 
13.30 	disciplinary action taken against an occupational license held by the coordinator or an 
13.31 	instructor teaching an approved offering. The notification may be grounds to suspend, 
13.32 	deny, or revoke the approval of the coordinator and grounds to disallow the use of a 
13.33 	particular instructor.

13.34 	Sec. 15. [45.34] FEES.
14.1 	Fees for approved courses and related materials must be clearly identified to 
14.2 	students. In the event that a course is canceled for any reason, all fees must be returned 
14.3 	within 15 days from the date of cancellation. In the event that a course is postponed for 
14.4 	any reason, students must be given the choice of attending the course at a later date or of 
14.5 	having their fees refunded in full. If a student is unable to attend a course or cancels the 
14.6 	registration in a course, education provider policies regarding refunds will govern.

14.7 	Sec. 16. [45.35] FACILITIES.
14.8 	Each course of study, except self-study courses, must be conducted in a classroom or 
14.9 	other facility that is adequate to comfortably accommodate the faculty and the number of 
14.10 	students enrolled. The education provider may limit the number of students enrolled in a 
14.11 	course. Approved courses must not be held on the premises of a company doing business 
14.12 	in the regulated area, except for company-sponsored courses allowed by statute.

14.13 	Sec. 17. [45.36] SUPPLEMENTARY MATERIALS.
14.14 	An adequate supply of supplementary materials to be used or distributed in 
14.15 	connection with an approved course must be available in order to ensure that each student 
14.16 	receives all necessary materials. Outlines and any other materials that are reproduced 
14.17 	must be legible.

14.18 	Sec. 18. [45.37] ADVERTISING COURSES.
14.19 	(a) Paragraphs (b) to (f) govern the advertising of prelicense and continuing 
14.20 	education courses.
14.21 	(b) Advertising must be truthful and not deceptive or misleading. Courses must not 
14.22 	be advertised in any manner as approved unless approval has been granted in writing by 
14.23 	the commissioner.
14.24 	(c) No advertisement, pamphlet, circular, or other similar materials pertaining to an 
14.25 	approved offering may be circulated or distributed in this state, unless one of the following 
14.26 	statements is prominently displayed:
14.27 	For prelicense education courses, "This course has been approved by the Minnesota 
14.28 	Commissioner of Commerce for (relevant industry) prelicense education."
14.29 	For continuing education courses, "This course has been approved by the Minnesota 
14.30 	Commissioner of Commerce for ..... hours for (relevant industry) continuing 
14.31 	education."
14.32 	(d) Advertising of approved courses must be clearly distinguishable from the 
14.33 	advertisement of other nonapproved courses and services.
15.1 	(e) Courses must not be advertised before approval, unless the course is described in 
15.2 	the advertising as "approval pending" and that is, in fact, the case.
15.3 	(f) The number of hours for which a course has been approved must be prominently 
15.4 	displayed on an advertisement for the course. If the course offering is longer than the 
15.5 	number of hours of credit to be given, it must be clear that credit is not earned for the 
15.6 	entire course.

15.7 	Sec. 19. [45.38] NOTICE TO STUDENTS.
15.8 	At the beginning of each approved offering, the following notice must be handed 
15.9 	out in printed form or must be read to students: "This educational offering is recognized 
15.10 	by the Minnesota Commissioner of Commerce as satisfying ..... hours of credit toward 
15.11 	(choose one or more of the following as appropriate: prelicensing or continuing) (insert 
15.12 	appropriate industry) education requirements."

15.13 	Sec. 20. [45.39] AUDITS.
15.14 	The commissioner reserves the right to audit subject offerings with or without notice 
15.15 	to the education provider.

15.16 	Sec. 21. [45.40] FALSIFICATION OF REPORTS.
15.17 	A licensee or applicant found to have falsified an education report to the 
15.18 	commissioner will be considered to have violated the laws relating to the industry for 
15.19 	which the person has a license and will be subject to suspension or revocation of the 
15.20 	license or denial of the application for licensure.
15.21 	The commissioner reserves the right to audit a licensee's education records.

15.22 	Sec. 22. [45.41] DISCIPLINARY ACTION.
15.23 	The commissioner may deny, censure, suspend, or revoke the approval of a 
15.24 	coordinator or course and disallow the use of a qualified instructor if it is determined that 
15.25 	the coordinator, course, or instructor is not in compliance with this chapter.

15.26 	Sec. 23. [45.42] WAIVERS AND EXTENSIONS.
15.27 		Subdivision 1.Waivers. When a licensee documents to the commissioner's 
15.28 	satisfaction that the person is unable, and will continue to be unable, to attend actual 
15.29 	classroom course work or complete a self-study program because of a physical disability, 
15.30 	medical condition, or similar reason, attendance at continuing education courses may 
15.31 	be waived for a period not to exceed one year. The commissioner may require that the 
16.1 	individual read, listen to, or watch a sufficient number of materials related to that industry 
16.2 	as would be necessary for the licensee to satisfy educational credit hour needs. The 
16.3 	commissioner will award the licensee credit hours by determining how many credit hours 
16.4 	would be granted to a classroom course involving the same material.
16.5 		Subd. 2.Extensions. When a licensee documents to the commissioner's satisfaction 
16.6 	that the person is unable to complete continuing education requirements within the required 
16.7 	time period owing to a financial or medical hardship, the commissioner may extend, for up 
16.8 	to 90 days, the time period during which the continuing education must be successfully 
16.9 	completed. Loss of income from either attendance at courses or cancellation of a license is 
16.10 	not a bona fide financial hardship. Requests for extensions must be submitted in writing 
16.11 	no later than 60 days before the education is due and must include an explanation with 
16.12 	verification of the hardship, plus verification of enrollment in an approved course of study.
16.13 		Subd. 3.Exception. This section does not apply to appraiser license education.

16.14 	Sec. 24. [45.43] REPORTING REQUIREMENTS.
16.15 	Required education must be reported in a manner prescribed by the commissioner 
16.16 	within ten days of the course completion.

16.17 	Sec. 25. Minnesota Statutes 2008, section 60K.31, is amended by adding a subdivision 
16.18 	to read:
16.19 		Subd. 3a.Fingerprint. "Fingerprint" means an impression of the lines on the 
16.20 	finger taken for purpose of identification.

16.21 	Sec. 26. Minnesota Statutes 2008, section 60K.36, subdivision 4, is amended to read:
16.22 		Subd. 4.Course of study. The examination must be given only after the applicant 
16.23 	has completed a program of classroom studies in a school, through classroom study, 
16.24 	verifiable self-study, or a combination of both, which must not include a school course
16.25 	sponsored by, offered by, or affiliated with an insurance company or its producers; except 
16.26 	that this limitation does not preclude a bona fide professional association of insurance 
16.27 	producers, not acting on behalf of an insurer, from offering courses. The course of study 
16.28 	must consist of 30 hours of classroom study devoted to the basic fundamentals of insurance 
16.29 	for those seeking a Minnesota license for the first time and 7.5 20 hours devoted to the per 
16.30 	major line of authority in which the producer seeks to be licensed. The program of studies 
16.31 	or study course must have been approved by the commissioner in order to qualify under 
16.32 	this subdivision. If the applicant has been previously licensed for the particular line of 
16.33 	insurance in the state of Minnesota, the requirement of a program of studies or a study 
17.1 	course must be waived. A certification of compliance by the organization offering the 
17.2 	course must accompany the applicant's license application. This program of studies in a 
17.3 	school or a study course does not apply to limited lines farm property liability applicants 
17.4 	or to variable life and variable annuity applicants.

17.5 	Sec. 27. Minnesota Statutes 2008, section 60K.36, is amended by adding a subdivision 
17.6 	to read:
17.7 		Subd. 4a.Exemptions. A prelicensing program of studies does not apply to:
17.8 	(1) an applicant for the limited lines farm property liability line of authority or the 
17.9 	variable life and variable annuity line of authority;
17.10 	(2) an applicant who has received a two-year Minnesota vocational school degree in 
17.11 	insurance;
17.12 	(3) an applicant who has received a four-year college degree in business with an 
17.13 	insurance emphasis;
17.14 	(4) an applicant for the life line of authority who holds any of the following 
17.15 	professional designations or successor designations: Certified Employee Benefit Specialist 
17.16 	(CEBS), Chartered Financial Consultant (ChFC), Certified Insurance Counselor (CIC), 
17.17 	Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), Fellow of the Life 
17.18 	Management Institute (FLMI), or Life Underwriter Training Council Fellow (LUTCF);
17.19 	(5) an applicant for the health line of authority who holds any of the following 
17.20 	professional designations or successor designations: Registered Health Underwriter 
17.21 	(RHU), Certified Employee Benefit Specialist (CEBS), Registered Employee Benefits 
17.22 	Counselor (REBC), or Health Insurance Associate (HIA); or
17.23 	(6) an applicant for the Property, Casualty, or Personal Lines P & C lines of authority 
17.24 	who provides satisfactory evidence of currently holding any of the following professional 
17.25 	designations or successor designations: Accredited Advisor in Insurance (AAI), Associate 
17.26 	in Risk Management (ARM), Certified Insurance Counselor (CIC), or Chartered Property 
17.27 	and Casualty Underwriter (CPCU).

17.28 	Sec. 28. [60K.361] INSURANCE EDUCATION.
17.29 	(a) Prelicense education must consist of 20 hours of education per line of authority.
17.30 	(b) The first ten hours must be an introduction to insurance and insurance-related 
17.31 	concepts covering all of the major lines of authority except variable life and variable 
17.32 	annuities. The course must consist of the following:
17.33 	(1) rules, regulations, and law;
17.34 	(2) basic fundamentals of insurance;
18.1 	(3) property:
18.2 	(i) types of policies;
18.3 	(ii) policy provisions;
18.4 	(iii) perils, exclusions, deductibles, and liability; and
18.5 	(iv) evaluating needs;
18.6 	(4) casualty:
18.7 	(i) types of policies;
18.8 	(ii) policy provisions;
18.9 	(iii) perils, exclusions, deductibles, and liability; and
18.10 	(iv) evaluating needs;
18.11 	(5) life:
18.12 	(i) types of policies;
18.13 	(ii) policy provisions; and
18.14 	(iii) group insurance; and
18.15 	(6) accident and health:
18.16 	(i) types of policies;
18.17 	(ii) policy provisions; and
18.18 	(iii) group insurance.
18.19 	(c) The second ten hours of insurance prelicense education must be composed of 
18.20 	courses that cover a specific major line of authority and consist of the following:
18.21 	(1) life:
18.22 	(i) types of life insurance policies; and
18.23 	(ii) Minnesota laws, rules, and regulations pertinent to life insurance;
18.24 	(2) accident and health:
18.25 	(i) types of health insurance policies; and
18.26 	(ii) Minnesota laws, rules, and regulations pertinent to accident and health insurance;
18.27 	(3) property:
18.28 	(i) personal lines;
18.29 	(ii) commercial lines; and
18.30 	(iii) Minnesota laws, rules, and regulations pertinent to property insurance.
18.31 	(4) casualty:
18.32 	(i) personal lines;
18.33 	(ii) commercial lines; and
18.34 	(iii) Minnesota laws, rules, and regulations pertinent to casualty insurance; and
18.35 	(5) personal lines:
18.36 	(i) types of property/casualty personal lines insurance policies; and
19.1 	(ii) Minnesota laws, rules, and regulations pertinent to property/casualty personal 
19.2 	lines insurance.

19.3 	Sec. 29. Minnesota Statutes 2008, section 60K.37, is amended by adding a subdivision 
19.4 	to read:
19.5 		Subd. 2a.Criminal history record check; fingerprints. (a) An individual applying 
19.6 	for a resident insurance producer license must:
19.7 	(1) consent to a criminal history record check;
19.8 	(2) submit a fingerprint card in a form acceptable to the commissioner; and
19.9 	(3) pay the fee required to perform criminal history record checks with the Minnesota 
19.10 	Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
19.11 	(b) The commissioner may contract for the collection and transmission of 
19.12 	fingerprints required under this chapter and may order the fee for collecting and 
19.13 	transmitting fingerprints to be payable directly to the contractor by the applicant. The 
19.14 	commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
19.15 	(c) The commissioner must treat and maintain an applicant's fingerprints and any 
19.16 	criminal history record information obtained under this chapter as confidential and must 
19.17 	apply security measures consistent with the standards specified by the Criminal Justice 
19.18 	Information Services Division of the Federal Bureau of Investigation for the electronic 
19.19 	storage of fingerprints and necessary identifying information. The commissioner must 
19.20 	limit the use of records solely to the purposes authorized in this chapter. The fingerprints 
19.21 	and any criminal history record information must not be subject to subpoena, other than 
19.22 	one issued in a criminal action or investigation.
19.23 	(d) The commissioner may receive criminal history record information from another 
19.24 	government agency in lieu of the Minnesota Bureau of Criminal Apprehension.

19.25 	Sec. 30. Minnesota Statutes 2008, section 60K.55, subdivision 2, is amended to read:
19.26 		Subd. 2.Licensing fees. (a) In addition to fees provided for examinations and the 
19.27 	technology surcharge required under paragraph (d), each insurance producer licensed 
19.28 	under this chapter shall pay to the commissioner a fee of:
19.29 	(1) $50 for an initial life, accident and health, property, or casualty license issued to 
19.30 	an individual insurance producer, and a fee of $50 for each renewal;
19.31 	(2) $50 for an initial variable life and variable annuity license issued to an individual 
19.32 	insurance producer, and a fee of $50 for each renewal;
19.33 	(3) $50 for an initial personal lines license issued to an individual insurance 
19.34 	producer, and a fee of $50 for each renewal;
20.1 	(4) $50 for an initial limited lines license issued to an individual insurance producer, 
20.2 	and a fee of $50 for each renewal;
20.3 	(5) $200 for an initial license issued to a business entity, and a fee of $200 for each 
20.4 	renewal; and
20.5 	(6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.
20.6 	(b) Initial licenses issued to a business entity under this chapter are valid for a period 
20.7 	not to exceed 24 months and expire on October 31 of the renewal year assigned by the 
20.8 	commissioner. Initial licenses issued to an individual insurance producer under this 
20.9 	chapter before August 1, 2010, are valid for a period not to exceed 24 months and expire 
20.10 	on October 31 of the renewal year assigned by the commissioner. Each individual license 
20.11 	initially issued or renewed on or after August 1, 2010, expires on the last day of the birth 
20.12 	month of the producer in the year that will result in the term of the license being at least 
20.13 	12 months, but no more than 24 months. Beginning with the first license expiration on 
20.14 	the last day of the birth month of an individual producer as set forth in this paragraph, 
20.15 	all such licenses must after this date expire biennially on the last day of the birth month 
20.16 	of the individual producer that is two years subsequent to the preceding expiration date. 
20.17 	Each renewal insurance producer license is valid for a period of 24 months. Licensees 
20.18 	who submit renewal applications postmarked or delivered on or before October 15 of the 
20.19 	renewal year may continue to transact business whether or not the renewal license has been 
20.20 	received by November 1. Licensees who submit applications postmarked or delivered 
20.21 	after October 15 of the renewal year must not transact business after the expiration date 
20.22 	of the license until the renewal license has been received.
20.23 	(c) All fees are nonreturnable, except that an overpayment of any fee may be 
20.24 	refunded upon proper application.
20.25 	(d) In addition to the fees required under paragraph (a), individual insurance 
20.26 	producers shall pay, for each initial license and renewal, a technology surcharge of up to 
20.27 	$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted 
20.28 	under that section.

20.29 	Sec. 31. Minnesota Statutes 2008, section 60K.56, is amended to read:
20.30 	60K.56 CONTINUING INSURANCE EDUCATION.
20.31 		Subdivision 1.Definition. For the purposes of this section, "course" means a course, 
20.32 	program of instruction, or seminar of continuing insurance education. A "professional 
20.33 	designation examination" means a written, proctored, and graded examination the passage 
20.34 	of which leads to a bona fide insurance or financial planning professional designation used 
20.35 	by insurance producers.
21.1 		Subd. 2.Applicability. This section applies to all natural persons licensed by this 
21.2 	state to sell lines of insurance for which licensing examinations are required.
21.3 		Subd. 3.Exemptions. This section does not apply to persons soliciting or selling 
21.4 	solely on behalf of companies organized and operating according to chapter 67A.
21.5 		Subd. 4.Powers of the commissioner. (a) The commissioner shall make the final 
21.6 	determination as to accreditation and assignment of credit hours for courses.
21.7 	(b) The commissioner shall adopt procedures for reporting compliance with the 
21.8 	minimum education requirement.
21.9 	(c) The commissioner shall may adopt rules according to chapter 14 to carry out the 
21.10 	purposes of this section.
21.11 		Subd. 5.Criteria for course accreditation. (a) The commissioner may accredit a 
21.12 	course only to the extent it is designed to impart substantive and procedural knowledge of 
21.13 	the insurance field. The burden of demonstrating that the course satisfies this requirement 
21.14 	is on the individual or organization seeking accreditation. The commissioner shall approve 
21.15 	any educational program approved by Minnesota Continuing Legal Education relating to 
21.16 	the insurance field. The commissioner is authorized to establish a procedure for renewal 
21.17 	of course accreditation.
21.18 	(b) The commissioner shall approve or disapprove professional designation 
21.19 	examinations that are recommended for approval by the advisory task force. In order 
21.20 	for an insurance producer to receive full continuing education credit for a professional 
21.21 	designation examination, the producer must pass the examination. A producer may 
21.22 	not receive credit for classroom instruction preparing for the professional designation 
21.23 	examination and also receive continuing education credit for passing the professional 
21.24 	designation examination.
21.25 	(c) The commissioner may not accredit a course:
21.26 	(1) that is designed to prepare students for a license examination;
21.27 	(2) in sales promotion; or
21.28 	(3) in motivation, the art of selling, or psychology.
21.29 		Subd. 6.Minimum education requirement. Each person subject to this section 
21.30 	shall complete a minimum of 30 24 credit hours of courses accredited by the commissioner 
21.31 	during each 24-month licensing period. Any person whose initial licensing period extends 
21.32 	more than six months shall complete 15 hours of courses accredited by the commissioner 
21.33 	during the initial license period. Any person teaching or lecturing at an accredited 
21.34 	course qualifies for three times the number of credit hours that would be granted to a 
21.35 	person completing the accredited course. No more than one-half of the credit hours per 
21.36 	licensing period required under this section may be credited to a person for attending any 
22.1 	combination of courses either sponsored by, offered by, or affiliated with an insurance 
22.2 	company or its agents; or offered using new delivery technology, including computer, 
22.3 	interactive technology, and the Internet. For the purposes of this subdivision, a course 
22.4 	provided by a bona fide insurance trade association is not considered to be sponsored by, 
22.5 	offered by, or affiliated with an insurance company or its agents. A licensee may must
22.6 	obtain up to five three hours of the credit hours per licensing period from a class or classes 
22.7 	in the area of professional development including, but not limited to, best practices, ethics, 
22.8 	privacy protection, customer/client, personal and safety awareness, software applications, 
22.9 	agency management, claims settlement, business perpetuation, and disaster planning. 
22.10 	Courses sponsored by, offered by, or affiliated with an insurance company or agent may 
22.11 	restrict its students to agents of the company or agency.
22.12 		Subd. 7.Waiver of requirements. (a) The commissioner may grant a waiver or 
22.13 	an extension of time up to 90 days to complete the minimum education requirement to 
22.14 	an individual upon a showing of good cause. It is the licensed person's responsibility 
22.15 	to request a waiver or extension on a form prescribed by the commissioner. As of the 
22.16 	day the licensed person properly files a request for a waiver or extension, the license 
22.17 	remains in effect until the commissioner notifies the licensed person of the commissioner's 
22.18 	decision. The commissioner may approve a waiver or extension subject to any reasonable 
22.19 	conditions. The person's license remains in effect during the compliance period determined 
22.20 	by the commissioner. If the licensed person fails to comply with any reasonable conditions 
22.21 	imposed by the commissioner, the commissioner shall terminate the license. If the request 
22.22 	for a waiver or extension is denied by the commissioner, the licensed person shall have 30 
22.23 	days within which to satisfy the minimum education requirement involved in the request 
22.24 	for a waiver or extension. If the minimum education requirement is not satisfied within 
22.25 	the compliance period, the commissioner shall terminate the person's license.
22.26 	(b) Upon application on a form prescribed by the commissioner, the commissioner 
22.27 	may grant a waiver of the minimum education requirement to a licensee who is no longer 
22.28 	actively engaged in the solicitation and sale of insurance. A licensed person seeking a 
22.29 	waiver from the requirements of this section may be required to submit information to 
22.30 	the commissioner that substantiates the person's retirement or inactive status. A licensed 
22.31 	person receiving a waiver from the commissioner may maintain and renew a license but 
22.32 	may not solicit or sell new insurance business while this waiver is in effect. A licensee 
22.33 	may, for a fee, continue to service an insurance policy for which the licensee is the 
22.34 	producer of record, if the policy is in force at the time the waiver is granted. An insurer 
22.35 	may not terminate a service contract or refuse to pay compensation because the waiver 
22.36 	does not allow the licensee to solicit or sell new insurance.
23.1 	For the purposes of receiving renewal commissions and other benefits or 
23.2 	compensation from insurers, an agent receiving a waiver under this paragraph is 
23.3 	considered to be the holder of a valid insurance producer license in this state.
23.4 		Subd. 8.Reporting. (a) After completing the minimum education requirement, 
23.5 	each person subject to this section shall file or cause to be filed a compliance report in 
23.6 	accordance with the procedures adopted by the commissioner. A producer must not claim 
23.7 	credit for continuing education not actually completed at the date of filing the report.
23.8 	(b) An institution offering an accredited course shall comply with the procedure for 
23.9 	reporting compliance adopted by the commissioner.
23.10 	(c) If a person subject to this section completes a nonaccredited course, that person 
23.11 	may submit an application of the commissioner for approval of the course accompanied 
23.12 	by a fee of not more than $10 payable to the state of Minnesota for deposit in the general 
23.13 	fund. Upon a determination that the course satisfies the criteria for course accreditation, 
23.14 	the commissioner may approve the nonaccredited course and shall so inform the person.
23.15 		Subd. 9.Enforcement. If a person subject to this section fails to complete the 
23.16 	minimum education or reporting requirement or to pay the prescribed fees for any 
23.17 	licensing period, no license may be renewed or continued in force for that person for any 
23.18 	class of insurance beginning November 1 of the year the day after the renewal was due 
23.19 	and that person may not act as an insurance producer until the person has demonstrated 
23.20 	to the satisfaction of the commissioner that all requirements of this section have been 
23.21 	complied with or that a waiver or extension has been obtained.

23.22 	Sec. 32. Minnesota Statutes 2008, section 72B.02, subdivision 2, is amended to read:
23.23 		Subd. 2.Person. "Person" means a natural person an individual or business entity.

23.24 	Sec. 33. Minnesota Statutes 2008, section 72B.02, subdivision 5, is amended to read:
23.25 		Subd. 5.Independent adjuster. "Independent adjuster" means any a person who
23.26 	for another for money, commission or any other thing of value acts as an adjuster on 
23.27 	behalf of more than one insurer, or who holds out to do so.:
23.28 	(1) is an individual, a business entity, an independent contractor, or an employee of a 
23.29 	contractor, who contracts for compensation with insurers or self-insurers;
23.30 	(2) is treated for tax purposes by the insurer or self-insurer in a manner that is 
23.31 	consistent with the tax treatment of an independent contractor rather than the tax treatment 
23.32 	of an employee, as defined in the Internal Revenue Code, United States Code, title 26, 
23.33 	subtitle C; and
24.1 	(3) investigates, negotiates, or settles property, casualty, or workers' compensation 
24.2 	claims for insurers or for self-insurers.

24.3 	Sec. 34. Minnesota Statutes 2008, section 72B.02, subdivision 6, is amended to read:
24.4 		Subd. 6.Public adjuster. "Public adjuster" means an adjuster who hires out for 
24.5 	employment by members of the public for a fee, commission or any other thing of value, 
24.6 	and who, when so employed, acts solely to represent the interests of an insured named 
24.7 	in an insurance policy. any person who, for compensation or any other thing of value 
24.8 	on behalf of the insured:
24.9 	(1) acts or aids, solely in relation to first-party claims arising under insurance 
24.10 	contracts that insure the real or personal property of the insured, on behalf of an insured in 
24.11 	negotiating for, or effecting the settlement of, a claim for loss or damage covered by an 
24.12 	insurance contract;
24.13 	(2) advertises for employment as a public adjuster of insurance claims or solicits 
24.14 	business or represents himself or herself to the public as a public adjuster of first-party 
24.15 	insurance claims for losses or damages arising out of policies of insurance that insure real 
24.16 	or personal property; or
24.17 	(3) directly or indirectly solicits business, investigates or adjusts losses, or advises an 
24.18 	insured about first-party claims for losses or damages arising out of policies of insurance 
24.19 	that insure real or personal property for another person engaged in the business of 
24.20 	adjusting losses or damages covered by an insurance policy, for the insured.

24.21 	Sec. 35. Minnesota Statutes 2008, section 72B.02, subdivision 11, is amended to read:
24.22 		Subd. 11.Catastrophe or emergency situation. "Catastrophe or emergency 
24.23 	situation" means the occurrence of insured losses of such a number or severity that the 
24.24 	ordinary staff adjuster personnel complement of the insurer and the available independent 
24.25 	adjusters could not adjust all of the losses resulting from a common cause or related 
24.26 	causes in a reasonable time. an event that results in large numbers of deaths or injuries; 
24.27 	causes extensive damage or destruction of facilities that provide and sustain human 
24.28 	needs; produces an overwhelming demand on state and local response resources and 
24.29 	mechanisms; causes a severe long-term effect on general economic activity; or severely 
24.30 	affects state, local, and private sector capabilities to begin and sustain response activities. 
24.31 	A catastrophe must be declared by the governor of the state, district, or territory in which 
24.32 	the catastrophe occurred.

25.1 	Sec. 36. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.2 	to read:
25.3 		Subd. 15.Business entity. "Business entity" means a corporation, association, 
25.4 	partnership, limited liability company, limited liability partnership, or other legal entity.

25.5 	Sec. 37. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.6 	to read:
25.7 		Subd. 16.Fingerprint. "Fingerprint" means an impression of the lines on the 
25.8 	finger taken for purpose of identification.

25.9 	Sec. 38. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.10 	to read:
25.11 		Subd. 17.Home state. "Home state" means the District of Columbia and any state 
25.12 	or territory of the United States in which an adjuster maintains his, her, or its principal 
25.13 	place of residence or business and is licensed to act as a resident adjuster. If the resident 
25.14 	state does not license adjusters for the line of authority sought, the adjuster shall designate 
25.15 	as his, her, or its home state any state in which the adjuster is licensed and in good standing.

25.16 	Sec. 39. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.17 	to read:
25.18 		Subd. 18.Individual. "Individual" means a natural person.

25.19 	Sec. 40. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.20 	to read:
25.21 		Subd. 19.Insurer. "Insurer" means an insurance company.

25.22 	Sec. 41. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.23 	to read:
25.24 		Subd. 20.Uniform Individual Application. "Uniform Individual Application" 
25.25 	means the current version of the National Association of Insurance Commissioners 
25.26 	(NAIC) Uniform Individual Application for resident and nonresident individuals.

25.27 	Sec. 42. Minnesota Statutes 2008, section 72B.02, is amended by adding a subdivision 
25.28 	to read:
25.29 		Subd. 21.Uniform Business Entity Application. "Uniform Business Entity 
25.30 	Application" means the current version of the National Association of Insurance 
26.1 	Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident 
26.2 	business entities.

26.3 	Sec. 43. Minnesota Statutes 2008, section 72B.03, is amended to read:
26.4 	72B.03 LICENSES.
26.5 		Subdivision 1.Requirement; exceptions. Except as otherwise provided, no (a) A
26.6 	person shall not act or hold himself or herself out as an independent adjuster, public 
26.7 	adjuster, or public adjuster solicitor for money, a commission, or any other thing of value,
26.8 	unless such the person shall first obtain from the commissioner a license. No license 
26.9 	shall be required for:
26.10 	(1) a person acting in a catastrophe or emergency situation, and who has registered 
26.11 	with the commissioner for that purpose;
26.12 	(2) a nonresident adjuster who occasionally is in this state to adjust a single loss; 
26.13 	provided, however, that if a nonresident adjusts more than six losses in this state in 
26.14 	one year the adjuster must qualify for and receive a nonresident's license as provided 
26.15 	in sections 72B.01 to 72B.14, and provided the adjuster's domiciliary state affords a 
26.16 	like privilege. is licensed as an independent adjuster, public adjuster, or public adjuster 
26.17 	solicitor in accordance with this chapter, or is exempt from licensure as an independent 
26.18 	adjuster, public adjuster, or public adjuster solicitor under this chapter.
26.19 	(b) The definition of adjuster does not include, and a license as an adjuster is not 
26.20 	required of, the following:
26.21 	(1) attorneys-at-law admitted to practice in this state, when acting in the attorney's 
26.22 	professional capacity as an attorney;
26.23 	(2) a person employed solely to obtain facts surrounding a claim or to furnish 
26.24 	technical assistance to a licensed adjuster;
26.25 	(3) an individual who is employed to investigate suspected fraudulent insurance 
26.26 	claims but who does not adjust losses or determine claims payments;
26.27 	(4) a person who solely performs executive, administrative, managerial, or clerical 
26.28 	duties or any combination of these duties and who does not investigate, negotiate, or settle 
26.29 	claims with policyholders, claimants, or their legal representative;
26.30 	(5) a licensed health care provider or its employee who provides managed care 
26.31 	services so long as the services do not include the determination of compensability;
26.32 	(6) a managed care organization or any of its employees or an employee of any 
26.33 	organization providing managed care services so long as the services do not include the 
26.34 	determination of compensability;
26.35 	(7) a person who settles only reinsurance or subrogation claims;
27.1 	(8) an officer, director, manager, or employee of an authorized insurer, a surplus lines 
27.2 	insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer;
27.3 	(9) a United States manager of the United States branch of an alien insurer;
27.4 	(10) a person who investigates, negotiates, or settles life, accident and health, 
27.5 	annuity, or disability insurance claims;
27.6 	(11) an individual employee, under a self-insured arrangement, who adjusts claims 
27.7 	on behalf of his or her employer;
27.8 	(12) a licensed insurance producer, attorney-in-fact of a reciprocal insurer, or 
27.9 	managing general agent of the insurer to whom claim authority has been granted by the 
27.10 	insurer;
27.11 	(13) a person authorized to adjust workers' compensation or disability claims under 
27.12 	the authority of a third-party administrator license pursuant to section 60A.23, subdivision 
27.13 	8.
27.14 		Subd. 2.Classes of licenses. (a) Unless denied licensure pursuant to section 72B.08, 
27.15 	persons who have met the requirements of section 72B.04 must be issued an adjuster 
27.16 	license. There shall be four classes of licenses, as follows:
27.17 	(1) independent adjuster's license;
27.18 	(2) public adjuster's license;
27.19 	(3) public adjuster solicitor's license; and
27.20 	(4) crop hail adjuster's license.
27.21 	(b) The An independent adjuster and a public adjuster licenses shall be issued in at 
27.22 	least three fields each, as follows may qualify for a license in one or more of the following 
27.23 	lines of authority:
27.24 	(1) fire and allied lines, inland marine lines and including all perils under 
27.25 	homeowners policies property and casualty; or
27.26 	(2) all lines written as casualty insurance under section 60A.06, and including
27.27 	workers' compensation; and or
27.28 	(3) a combination of the fields described in clauses (1) and (2). Separate licenses 
27.29 	shall be required for each field, but the same person may obtain licenses in more than one 
27.30 	field. No person shall be licensed as both a public and independent adjuster. The license 
27.31 	shall state the class for which the person is licensed and, where applicable, the field in 
27.32 	which the person is licensed, and shall state the licensee's name and residence address, 
27.33 	the date of issuance and the date of expiration of the license and any other information 
27.34 	prescribed by the commissioner which is consistent with the purpose of the license crop.
27.35 	(c) Any person holding a license pursuant to this section is not required to hold any 
27.36 	other independent adjuster, public adjuster, insurance, or self-insurance administrator 
28.1 	license in this state pursuant to section 60A.23, subdivision 8, or any other provision, 
28.2 	provided that the person does not act as an adjuster with respect to life, health, or annuity 
28.3 	insurance, other than disability insurance.
28.4 	(d) An adjuster license remains in effect unless probated, suspended, revoked, or 
28.5 	refused as long as the fee set forth in section 72B.04, subdivision 10, is paid and all other 
28.6 	requirements for license renewal are met by the due date, otherwise, the license expires.
28.7 	(e) An adjuster whose license expires may, within 12 months of the renewal date, 
28.8 	be reissued an adjuster license upon receipt of the renewal request, as prescribed by the 
28.9 	commissioner, however, a penalty in the amount of double the unpaid renewal fee is 
28.10 	required to reissue the expired license.
28.11 	(f) An adjuster who is unable to comply with license renewal procedures and 
28.12 	requirements due to military service, long-term medical disability, or some other 
28.13 	extenuating circumstance may request a waiver of same and a waiver of any examination 
28.14 	requirement, fine, or other sanction imposed for failure to comply with renewal procedures.
28.15 	(g) An adjuster is subject to sections 72A.17 to 72A.32.
28.16 	(h) The adjuster must inform the commissioner by any means acceptable of any 
28.17 	change in resident or business addresses for the home state or in legal name within 30 
28.18 	days of the change.
28.19 	(i) The license must contain the licensee's name, address, and personal identification 
28.20 	number; the dates of issuance and expiration; and any other information the commissioner 
28.21 	deems necessary.
28.22 	(j) In order to assist in the performance of the commissioner's duties, the 
28.23 	commissioner may contract with nongovernmental entities, including the National 
28.24 	Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any 
28.25 	ministerial functions related to licensing that the commissioner may deem appropriate, 
28.26 	including the collection of fees and data.
28.27 		Subd. 3.Payment for services; unlawful practice. No insurer, agent, or other 
28.28 	representative of an insurer nor any adjuster shall pay any fee or other compensation to 
28.29 	any person for acting as an adjuster, or a public adjuster solicitor, except to a person 
28.30 	duly licensed to so act or to a person not required to be licensed by sections 72B.01 to 
28.31 	72B.14; and it shall be unlawful for any person to act as an independent adjuster, a 
28.32 	public adjuster or a public adjuster solicitor, who is not duly licensed, or excluded from 
28.33 	the licensing requirement.  

28.34 	Sec. 44. [72B.041] RESIDENT ADJUSTER LICENSE PROCEDURE AND 
28.35 	REQUIREMENTS; EXAMINATIONS; FEES.
29.1 		Subdivision 1.Application. (a) An individual applying for a resident adjuster 
29.2 	license must make application to the commissioner on the appropriate National 
29.3 	Association of Insurance Commissioners (NAIC) Uniform Individual Application in 
29.4 	a format prescribed by the commissioner and declare under penalty of suspension, 
29.5 	revocation, or refusal of the license that the statements made in the application are true, 
29.6 	correct, and complete to the best of the individual's knowledge and belief. Before 
29.7 	approving the application, the commissioner must find that the individual:
29.8 	(1) is at least 18 years of age;
29.9 	(2) is eligible to designate this state as the individual's home state;
29.10 	(3) is trustworthy, reliable, and of good reputation, evidence of which must be 
29.11 	determined by the commissioner;
29.12 	(4) has not committed any act that is a ground for probation, suspension, revocation, 
29.13 	or refusal of an adjuster's license as set forth in section 72B.08;
29.14 	(5) has successfully passed the examination for the lines of authority for which 
29.15 	the individual has applied; and
29.16 	(6) has paid the fees set forth in subdivision 9.
29.17 	An applicant for licensing as a public adjuster solicitor under sections 72B.01 to 
29.18 	72B.14 must be at least 18 years of age, must be competent and trustworthy, and must not 
29.19 	have been engaged in any practice which would be grounds for suspension or revocation 
29.20 	of a license under sections 72B.01 to 72B.14 within the three years next preceding the 
29.21 	date of the application.
29.22 	In the case of any applicant who has been convicted of a felony within the ten years 
29.23 	next preceding the date of the application, and who in the judgment of the commissioner, 
29.24 	meets the other qualifications, the commissioner may impose the additional requirement of 
29.25 	the filing of a bond in accordance with the requirements of section 72B.08, subdivision 8.
29.26 	(b) A business entity applying for a resident adjuster license must make application 
29.27 	to the commissioner on the appropriate NAIC Uniform Business Entity Application 
29.28 	in a format prescribed by the commissioner and declare under penalty of suspension, 
29.29 	revocation, or refusal of the license that the statements made in the application are true, 
29.30 	correct, and complete to the best of the business entity's knowledge and belief. Before 
29.31 	approving the application, the commissioner shall find that the business entity:
29.32 	(1) is eligible to designate this state as its home state;
29.33 	(2) has designated a licensed independent or public adjuster responsible for the 
29.34 	business entity's compliance with the insurance laws, rules, and regulations of this state;
29.35 	(3) has not committed an act that is a ground for probation, suspension, revocation, 
29.36 	or refusal of an adjuster's license as set forth in section 72B.08; and
30.1 	(4) has paid the fees set forth in subdivision 9.
30.2 		Subd. 2. Criminal history record check; fingerprints. (a) An individual applying 
30.3 	for a resident independent or public adjuster license must:
30.4 	(1) consent to a criminal history record check;
30.5 	(2) submit a fingerprint card in a form acceptable to the commissioner; and
30.6 	(3) pay the fee required to perform criminal history record checks with the Minnesota 
30.7 	Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
30.8 	(b) The commissioner may contract for the collection and transmission of 
30.9 	fingerprints required under this chapter and may order the fee for collecting and 
30.10 	transmitting fingerprints to be payable directly to the contractor by the applicant. The 
30.11 	commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
30.12 	(c) The commissioner must treat and maintain an applicant's fingerprints and any 
30.13 	criminal history record information obtained under this chapter as confidential and must 
30.14 	apply security measures consistent with the standards specified by the Criminal Justice 
30.15 	Information Services Division of the Federal Bureau of Investigation for the electronic 
30.16 	storage of fingerprints and necessary identifying information. The commissioner must 
30.17 	limit the use of records solely to the purposes authorized in this chapter. The fingerprints 
30.18 	and any criminal history record information must not be subject to subpoena, other than 
30.19 	one issued in a criminal action or investigation.
30.20 	(d) The commissioner may receive criminal history record information from another 
30.21 	government agency in lieu of the Minnesota Bureau of Criminal Apprehension.
30.22 	(e) The commissioner may require any documents reasonably necessary to verify the 
30.23 	information contained in the application.
30.24 	(f) All applicants for a license as a public adjuster must attach to their application 
30.25 	evidence that the bonding requirement in subdivision 3 has been satisfied.
30.26 		Subd. 3.Bonding. No initial or renewal public adjuster's license shall be issued to 
30.27 	any applicant unless there is on file with the commissioner a good and sufficient surety 
30.28 	bond, issued by an insurer authorized to do business in this state. The bond shall be in 
30.29 	the amount of $10,000 with the state of Minnesota as obligee, conditioned for the prompt 
30.30 	payment to any person entitled thereto, other than a partner or associate of the applicant, 
30.31 	of any amounts received by the applicant or to protect any person other than a partner or 
30.32 	associate of the applicant from loss resulting from fraud, dishonesty, forgery or theft 
30.33 	in connection with the applicant's duties under sections 72B.01 to 72B.14; provided, 
30.34 	however, that the aggregate liability of the surety to all persons for all losses shall, in no 
30.35 	event, exceed the amount of such bond. The bond shall remain in effect during the term 
30.36 	of the license, or until the surety is released from liability by the commissioner, or until 
31.1 	canceled by the surety. The surety may cancel a bond, without prejudice to any liability 
31.2 	which occurred prior to the cancellation, by giving at least 30 days' written notice to the 
31.3 	commissioner. In the event that the required bond is terminated, the public adjuster's 
31.4 	license shall automatically be suspended until a new bond is filed with the commissioner.
31.5 		Subd. 4.Examinations.  (a) An individual applying for an independent or public 
31.6 	adjuster license under this chapter must pass a written examination unless exempt pursuant 
31.7 	to subdivision 5. The examination must test the knowledge of the individual concerning 
31.8 	the lines of authority for which application is made, the duties and responsibilities of 
31.9 	an independent or public adjuster, and the insurance laws and regulations of this state. 
31.10 	Examinations required by this subdivision must be developed and conducted under rules 
31.11 	and regulations prescribed by the commissioner.
31.12 	(b) The commissioner may make arrangements, including contracting with an 
31.13 	outside testing service, for administering examinations.
31.14 	(c) An individual who fails to appear for the examination as scheduled or fails to 
31.15 	pass the examination must reapply for an examination and remit all required fees and 
31.16 	forms before being rescheduled for another examination.
31.17 	(d) The commissioner may by rule determine the period of time between failure of 
31.18 	an examination and reexamination.
31.19 	(e) A person shall not be eligible to take an examination if that person's license as an 
31.20 	independent adjuster or public adjuster has been revoked in this or any other state within 
31.21 	the three years next preceding the date of the application.
31.22 	(f) No examination shall be required for the timely renewal of a license, unless the 
31.23 	license has been revoked.
31.24 		Subd. 5.Exceptions. (a) An individual who applies for an adjuster license in this 
31.25 	state who is or was licensed in another state for the same lines of authority based on 
31.26 	an adjuster examination is not required to complete a prelicensing examination. This 
31.27 	exemption is only available if the person is currently licensed in another state or if that 
31.28 	state license has expired and the application is received by this state within 90 days of 
31.29 	expiration. The applicant must provide certification from the other state that the applicant's 
31.30 	license is currently in good standing or was in good standing at the time of expiration 
31.31 	or certification from the other state that its producer database records, maintained by 
31.32 	the NAIC, its affiliates, or its subsidiaries, indicate that the applicant or the applicant's 
31.33 	company is or was licensed in good standing. The certification must be of a license with 
31.34 	the same line of authority for which the individual has applied.
31.35 	(b) A person licensed as an adjuster in another state based on an adjuster examination 
31.36 	who establishes legal residency in this state must make application within 90 days to 
32.1 	become a resident adjuster licensee pursuant to this section, with the exception that no 
32.2 	prelicensing examination is required of this person.
32.3 	(c) A person who has held a license of any given class or in any field or fields within 
32.4 	three years prior to the application shall be entitled to a renewal of the license in the same 
32.5 	class or in the same fields without taking an examination.
32.6 	(d) A person applying for a license as a crop hail adjuster shall not be required to 
32.7 	comply with the requirements of subdivision 4.
32.8 		Subd. 6.License term. (a) Initial licenses issued to a business entity under this 
32.9 	section are valid for a period not to exceed 24 months. Each initial license must expire on 
32.10 	October 31 of the expiration year assigned by the commissioner. Initial licenses issued 
32.11 	to an individual adjuster under this chapter before August 1, 2010, are valid for a period 
32.12 	not to exceed 24 months and expire on October 31 of the renewal year assigned by the 
32.13 	commissioner. Each individual license initially issued or initially renewed on or after 
32.14 	August 1, 2010, must expire on the last day of the birth month of the adjuster in the year 
32.15 	that will result in the term of the license being at least 12 months, but no more than 24 
32.16 	months. Beginning with the first license expiration on the last day of the birth month of an 
32.17 	individual adjuster as set forth in this subdivision, all such licenses must after this date 
32.18 	expire biennially on the last day of the birth month of the individual adjuster that is two 
32.19 	years subsequent to the preceding expiration date.
32.20 	(b) Licenses issued under this section may be renewed upon the timely filing of an 
32.21 	application for renewal.
32.22 		Subd. 7.Renewal. An application for renewal of a license issued under sections 
32.23 	72B.01 to 72B.14 shall be on a form prescribed by the commissioner and shall be filed 
32.24 	with the commissioner with payment of the renewal fee prior to the expiration date 
32.25 	of the license.
32.26 		Subd. 8.Notice of changes. Each licensee or holder of a temporary permit shall 
32.27 	give written notice to the commissioner of any change in name, or residence address not 
32.28 	later than ten days after such change. The commissioner may, upon receipt of such notice, 
32.29 	issue an amendment to the license incorporating such changes.
32.30 		Subd. 9.Fees. A fee of $50 is imposed for each initial license or temporary permit 
32.31 	and $50 for each renewal thereof or amendment thereto. A fee of $20 is imposed for the 
32.32 	registration of each nonlicensed adjuster who is required to register under section 72B.06. 
32.33 	All fees shall be transmitted to the commissioner and shall be payable to the Department 
32.34 	of Commerce.

32.35 	Sec. 45. [72B.045] CONTINUING EDUCATION.
33.1 		Subdivision 1.Requirement. An individual who holds an adjuster license and who 
33.2 	is not exempt under this section must satisfactorily complete a minimum of 24 hours of 
33.3 	continuing education courses, of which three hours must be in ethics, reported to the 
33.4 	commissioner on a biennial basis in conjunction with his or her license renewal cycle.
33.5 		Subd. 2.Exceptions. This section does not apply to:
33.6 	(1) a licensee not licensed for one full year prior to the end of the applicable 
33.7 	continuing education biennium; or
33.8 	(2) a licensee holding a nonresident adjuster license who has met the continuing 
33.9 	education requirements of his or her designated home state.

33.10 	Sec. 46. Minnesota Statutes 2008, section 72B.05, is amended to read:
33.11 	72B.05 NONRESIDENTS.
33.12 	A nonresident person may become licensed under sections 72B.01 to 72B.14, 
33.13 	provided that the person meets all of the requirements of sections 72B.01 to 72B.14, and 
33.14 	complies with their provisions, and, on a form prescribed by the commissioner, appoints 
33.15 	the commissioner as the attorney upon whom may be served all legal process issued 
33.16 	in connection with any action or proceeding brought or pending in this state against or 
33.17 	involving the licensee and relating to transactions under the license; the appointment 
33.18 	shall be irrevocable and shall continue so long as any such action or proceeding could 
33.19 	arise or exist.
33.20 	Service of process must be made in compliance with section 45.028, subdivision 
33.21 	2. (a) Unless refused licensure pursuant to section 72B.08, a nonresident person shall 
33.22 	receive a nonresident adjuster license if:
33.23 	(1) the person is currently licensed in good standing as an adjuster in his, her, or 
33.24 	its resident or home state;
33.25 	(2) the person has submitted the proper request for licensure and has paid the fees 
33.26 	required by section 72B.041, subdivision 9;
33.27 	(3) the person has submitted or transmitted to the commissioner the appropriate 
33.28 	completed application for licensure; and
33.29 	(4) the person's designated home state awards nonresident adjuster licenses to 
33.30 	persons of this state on the same basis.
33.31 	(b) The commissioner may verify the adjuster's licensing status through any 
33.32 	appropriate database, including the producer database maintained by the National 
33.33 	Association of Insurance Commissioners, its affiliates, or its subsidiaries, or may request 
33.34 	certification of good standing as described in section 72B.041, subdivision 5.
34.1 	(c) As a condition to the continuation of a nonresident adjuster license, the licensee 
34.2 	must maintain a resident adjuster license in his, her, or its home state. The nonresident 
34.3 	adjuster license issued under this chapter must terminate and be surrendered immediately 
34.4 	to the commissioner if the resident adjuster license terminates for any reason, unless the 
34.5 	termination is due to the adjuster being issued a new resident adjuster license in his, her, or 
34.6 	its new home state. The new state resident adjuster license must have reciprocity with the 
34.7 	licensing nonresident states, otherwise, the nonresident adjuster license must terminate. 
34.8 	Notice of resident adjuster license termination must be given to any state that issued a 
34.9 	nonresident adjuster license. Notice must be given within 30 days of the termination date, 
34.10 	if terminated for change in the resident home state, then the notice must include both the 
34.11 	previous and current address. Maintaining a resident adjuster license is required for the 
34.12 	nonresident adjuster license to remain valid.

34.13 	Sec. 47. Minnesota Statutes 2008, section 72B.06, is amended to read:
34.14 	72B.06 CATASTROPHE OR EMERGENCY SITUATIONS.
34.15 	Any person acting as an independent adjuster in this state in a catastrophe or 
34.16 	emergency situation who is not a licensed adjuster, must register with the commissioner 
34.17 	within 72 hours of commencing any adjusting assignments. The registration shall be 
34.18 	made on such form as the commissioner shall prescribe and shall include the name 
34.19 	of the registrant, permanent home address and address for the period during which the 
34.20 	registration is effective, the categories of losses being adjusted by the registrant, the name 
34.21 	of the licensed independent adjuster or staff adjuster who will be supervising that adjuster, 
34.22 	and the name of the insurer or insurers in whose behalf the adjusting is being done. 
34.23 	No person shall register or be allowed to adjust losses under this provision unless that 
34.24 	person is under the supervision of a staff adjuster or a licensed independent adjuster. The 
34.25 	supervising adjuster shall indicate on the registration filing the period of time for which 
34.26 	the registration is being made, and no unlicensed person shall undertake to adjust losses 
34.27 	after the termination of the registration.
34.28 	Each registrant under this section shall promptly give written notice to the 
34.29 	commissioner of any change in address while in this state, or any other information stated 
34.30 	in the registration statement. (a) In the event of a declared catastrophe, an insurer must 
34.31 	notify the commissioner via an application for registration of each individual, not already 
34.32 	licensed in the state where the catastrophe has been declared, that will act as an emergency 
34.33 	independent adjuster on behalf of the insurer.
34.34 	(b) A person who is otherwise qualified to adjust claims, but not already licensed in 
34.35 	the state where the catastrophe has been declared, may act as an emergency independent 
35.1 	adjuster and adjust claims, if, within five days of deployment to adjust claims arising from 
35.2 	the declared catastrophe, the insurer notifies the commissioner by providing the following 
35.3 	information in a format prescribed by the commissioner:
35.4 	(1) the name of the individual;
35.5 	(2) the Social Security number of the individual;
35.6 	(3) the name of insurer the independent adjuster will represent;
35.7 	(4) the effective date of the contract between the insurer and independent adjuster;
35.8 	(5) the catastrophe or loss control number;
35.9 	(6) the catastrophe event name; and
35.10 	(7) other information the commissioner deems necessary.
35.11 	(c) An emergency independent adjuster's license or registration remains in force for 
35.12 	a period not to exceed 90 days, unless extended by the commissioner.
35.13 	The commissioner may summarily suspend or revoke the right of any person 
35.14 	adjusting in this state under the authority of this section to continue to adjust in this state, 
35.15 	if the commissioner finds that that person has engaged in any of the practices forbidden 
35.16 	to a licensed adjuster under sections 72B.01 to 72B.14. Notice of such suspension or 
35.17 	revocation may be given personally or by mail sent to the temporary address stated in the 
35.18 	registration. A duplicate copy of such notice shall be given to the supervising adjuster.

35.19 	Sec. 48. Minnesota Statutes 2008, section 72B.08, subdivision 1, is amended to read:
35.20 		Subdivision 1.Causes. The commissioner may place on probation, suspend, revoke, 
35.21 	or refuse to issue an initial or renewal or renew an adjuster's license or temporary permit 
35.22 	or may levy a civil penalty according to section 45.027, subdivision 6, or any combination 
35.23 	of the above actions for any of the following causes:
35.24 	(a) (1) failure to pass a required examination;
35.25 	(b) material (2) obtaining or attempting to obtain a license through misrepresentation 
35.26 	or fraud in obtaining or attempting to obtain a license or a temporary permit providing 
35.27 	incorrect, misleading, incomplete, or materially untrue information in the license 
35.28 	application;
35.29 	(c) willful violation of (3) violating any insurance law laws, rules, subpoena, or order 
35.30 	of the commissioner or of another state's insurance commissioner or of any provision of 
35.31 	sections 72B.01 to 72B.14;  
35.32 	(d) misappropriation, conversion or illegal withholding of moneys required to be 
35.33 	held in a fiduciary capacity (4) improperly withholding, misappropriating, or converting 
35.34 	any money or properties received in the course of doing insurance business;
36.1 	(e) materially (5) intentionally misrepresenting the terms and effect of any an actual 
36.2 	or proposed insurance contract or application for insurance, with intent to deceive, or 
36.3 	engaging in, or attempting to engage in, any fraudulent transaction with respect to a claim 
36.4 	or loss that the licensee or holder of a temporary permit is adjusting and, in the case of a 
36.5 	public adjuster solicitor, misrepresenting the services offered or the fees or commission 
36.6 	to be charged;
36.7 	(f) (6) conviction of a felony under the laws of this state, any other state, the United 
36.8 	States, or any foreign country;
36.9 	(g) (7) the licensee or holder of a temporary permit has demonstrated incompetency 
36.10 	or untrustworthiness to act as an adjuster or public adjuster solicitor;
36.11 	(h) (8) refusal to comply with any lawful order of the commissioner.;
36.12 	(9) having admitted or been found to have committed any insurance unfair trade 
36.13 	practice or fraud;
36.14 	(10) using fraudulent, coercive, or dishonest practices, or demonstrating 
36.15 	incompetence, untrustworthiness, or financial irresponsibility, in the conduct of insurance 
36.16 	business in this state or elsewhere;
36.17 	(11) having an insurance license, or its equivalent, probated, suspended, revoked, or 
36.18 	refused in any other state, province, district, or territory;
36.19 	(12) forging another's name to any document related to an insurance transaction;
36.20 	(13) cheating, including improperly using notes or any other reference material, to 
36.21 	complete an examination for an insurance license;
36.22 	(14) failing to comply with an administrative or court order imposing a child support 
36.23 	obligation; or
36.24 	(15) failing to pay state income tax or comply with any administrative or court order 
36.25 	directing payment of state income tax which remains unpaid.

36.26 	Sec. 49. Minnesota Statutes 2008, section 72B.08, subdivision 2, is amended to read:
36.27 		Subd. 2.Notice. If an application for a license or temporary permit is rejected by 
36.28 	the commissioner, the commissioner shall forthwith give written notice to the person 
36.29 	concerned, mailed to that person's last known address. The notice shall state the reason for 
36.30 	the action. In the event that the action by the commissioner is to refuse application for 
36.31 	licensure or renewal of an existing license, the commissioner must notify the applicant or 
36.32 	licensee in writing, advising of the reason for the refusal.

36.33 	Sec. 50. Minnesota Statutes 2008, section 72B.08, subdivision 4, is amended to read:
37.1 		Subd. 4.Suspension or revocation of license or permit. When the commissioner 
37.2 	has information, which if true, would be grounds for suspension, revocation, or refusal to 
37.3 	issue a renewal license or a temporary permit, the commissioner may order the licensee or 
37.4 	holder of the temporary permit to appear for a hearing pursuant to chapter 14, to determine 
37.5 	the facts of the case and to determine whether the license or permit should be suspended 
37.6 	or revoked, or whether it should not be renewed. The order shall fix the time and place for 
37.7 	the hearing. After the hearing, the commissioner shall enter an order either dismissing the 
37.8 	matter or suspending or revoking the license or temporary permit, or otherwise disposing 
37.9 	of the matter as the facts require. Pending the results of the hearing, the licensee or permit 
37.10 	holder may continue to act under the license or permit.
37.11 	The license of a business entity may be probated, suspended, revoked, or refused if 
37.12 	the commissioner finds, after a hearing, that:
37.13 	(1) its designated individual licensee's violation occurred while acting on behalf of 
37.14 	or representing the business entity;
37.15 	(2) the violation was known or should have been known by one or more of the 
37.16 	business entity's partners, officers, or managers;
37.17 	(3) the violation was not reported to the commissioner; and
37.18 	(4) corrective action was not taken.
37.19 	In addition to or in lieu of any applicable probation, suspension, revocation, or 
37.20 	refusal, a person may, after a hearing, additionally be subject to a civil fine according 
37.21 	to section 45.027, subdivision 6.
37.22 	The commissioner retains the authority to enforce the provisions of and impose 
37.23 	any penalty or remedy authorized by this chapter and section 45.027, subdivision 6, 
37.24 	against any person who is under investigation for or charged with a violation of this 
37.25 	chapter or sections 72A.17 to 72A.32, even if the person's license or registration has been 
37.26 	surrendered or has expired by operation of law.

37.27 	Sec. 51. [72B.105] RECORDS OF INDEPENDENT ADJUSTERS TO BE 
37.28 	RETAINED.
37.29 	An independent adjuster must maintain a copy of each contract between the 
37.30 	independent adjuster and the insurer or self-insurer and comply with the record retention 
37.31 	policy as agreed to in that contract.

37.32 	Sec. 52. [72B.106] STANDARDS OF CONDUCT OF INDEPENDENT 
37.33 	ADJUSTERS.
38.1 	(a) An independent adjuster must be honest and fair in all communications with the 
38.2 	insured, the insurer. and the public.
38.3 	(b) An independent adjuster must give policyholders and claimants prompt, 
38.4 	knowledgeable service and courteous, fair, and objective treatment at all times.
38.5 	(c) An independent adjuster must not give legal advice and must not deal directly 
38.6 	with any policyholder or claimant who is represented by legal counsel without the consent 
38.7 	for the legal counsel involved.
38.8 	(d) An independent adjuster must comply with all local, state, and federal privacy 
38.9 	and information security laws, if applicable.
38.10 	(e) An independent adjuster must identify himself or herself as an independent 
38.11 	adjuster and, if applicable, identify his or her employer when dealing with any 
38.12 	policyholder or claimant.
38.13 	(f) An independent adjuster must not have any financial interest in any adjustment or 
38.14 	acquire for himself or herself or any person any interest or title in salvage, without first 
38.15 	receiving written authority from the principal.

38.16 	Sec. 53. [72B.107] REPORTING OF ACTIONS OF ADJUSTER.
38.17 	(a) An adjuster must report to the commissioner any administrative action taken 
38.18 	against the adjuster in another jurisdiction or by another governmental agency in this state 
38.19 	within 30 days of the final disposition of the matter. The report must include a copy of the 
38.20 	order or consent order and any other relevant legal documents.
38.21 	(b) An adjuster must report to the commissioner any criminal action taken against 
38.22 	the adjuster in this or any jurisdiction within 30 days of the final disposition of the criminal 
38.23 	matter. The report must include a copy of the initial complaint filed, the final order issued 
38.24 	by the court, and any other relevant legal documents.

38.25 	Sec. 54. Minnesota Statutes 2008, section 72B.135, subdivision 1, is amended to read:
38.26 		Subdivision 1.Homeowner's Insured's right to cancel. A homeowner An insured
38.27 	who has entered into a contract with a public adjuster involving the business for which 
38.28 	the person was licensed, has the right to cancel the contract within 48 72 hours after the 
38.29 	contract has been signed. Cancellation is evidenced by the homeowner insured giving 
38.30 	written notice of cancellation to the public adjuster at the address stated in the contract. 
38.31 	Notice of cancellation, if given by mail, is effective upon deposit in a mailbox, properly 
38.32 	addressed to the public adjuster and postage prepaid. Notice of cancellation need not take 
38.33 	a particular form and is sufficient if it indicates, by any form of written expression, the 
38.34 	intention of the homeowner insured not to be bound by the contract.

39.1 	Sec. 55. Minnesota Statutes 2008, section 72B.135, subdivision 2, is amended to read:
39.2 		Subd. 2.Writing required; notice of right to cancel; notice of cancellation. (a) 
39.3 	Before entering a contract referred to in subdivision 1, the public adjuster must:
39.4 	(1) furnish the homeowner insured with a statement in boldface type of a minimum 
39.5 	size of ten points, in substantially the following form:
39.6 	"You, the homeowner insured, may cancel this contract at any time within 4872 
39.7 	hours after the contract has been signed between the homeowner insured and the public 
39.8 	adjuster. See attached notice of cancellation form for an explanation of this right."; and
39.9 	(2) furnish each homeowner insured, a fully completed form in duplicate, captioned, 
39.10 	"NOTICE OF CANCELLATION," which shall be attached to the contract and easily 
39.11 	detachable, and which shall contain in boldface type of a minimum size of ten points 
39.12 	the following information and statements:
39.13 	"NOTICE OF CANCELLATION

39.14		........
		
39.15		(enter date of contract)
		
39.16 	If you do not want to go forward with the contract with the public adjuster, you may 
39.17 	cancel the contract by mailing or delivering a signed and dated copy of this cancellation 
39.18 	notice or any other written notice, or send a telegram to (Name of Public Adjuster), at 
39.19 	(Address of Public Adjuster's Place of Business) not later than midnight of (Date). If you 
39.20 	cancel, any payments made by you under the contract will be returned within ten business 
39.21 	days following receipt by the public adjuster of your cancellation notice.

39.22		I HEREBY CANCEL THIS TRANSACTION.
	
39.23		........
		
39.24		(date)
			
39.25		........
		
39.26		(Homeowner's Insured's signature)"

39.27 	Sec. 56. Minnesota Statutes 2008, section 72B.135, subdivision 3, is amended to read:
39.28 		Subd. 3.Return of payments; compensation. Within ten days after a contract 
39.29 	referred to in subdivision 1 has been canceled, the public adjuster must tender to the 
39.30 	homeowner insured any payments made by the homeowner insured and any note or other 
39.31 	evidence of indebtedness. However, if the public adjuster has performed any emergency 
39.32 	services within the 48-hour 72-hour period, the public adjuster is entitled to compensation 
39.33 	for such services. Emergency services shall mean the removal of water, boarding up a 
39.34 	building, and reconnecting lights and heat.

40.1 	Sec. 57. [72B.136] ESCROW OR TRUST ACCOUNTS.
40.2 	A public adjuster who receives, accepts, or holds any funds on behalf of an insured, 
40.3 	towards the settlement of a claim for loss or damage, shall deposit the funds in a 
40.4 	non-interest-bearing escrow or trust account in a financial institution that is insured by 
40.5 	an agency of the federal government in the public adjuster's home state or where the 
40.6 	loss occurred.

40.7 	Sec. 58. [82.295] EDUCATION; COURSE CURRICULUM.
40.8 		Subdivision 1.Prelicense education. Prelicense education for a real estate 
40.9 	salesperson must consist of Course I, Course II, and Course III as described in this 
40.10 	section. Prelicense education for a real estate broker must consist of the broker course as 
40.11 	described in this section.
40.12 		 Subd. 2.Course I. (a) Introduction to Real Estate, one hour:
40.13 	(1) overview of course I:
40.14 	(i) course goals;
40.15 	(ii) attendance breaks;
40.16 	(iii) examination policy; and
40.17 	(iv) course and instructor evaluation;
40.18 	(2) scope of industry;
40.19 	(3) areas of specialization;
40.20 	(4) industry terminology;
40.21 	(5) professional standards and ethics; and
40.22 	(6) broker/salesperson relationship.
40.23 	(b) Title Closing, six hours:
40.24 	(1) examination of title:
40.25 	(i) history;
40.26 	(ii) examination of abstract;
40.27 	(iii) title insurance:
40.28 	(A) owners;
40.29 	(B) purchasers; and
40.30 	(C) mortgage; and
40.31 	(iv) title registration (torrens);
40.32 	(2) closing:
40.33 	(i) closing checklist;
40.34 	(ii) methods of closing;
40.35 	(A) closing through escrow; and
41.1 	(B) other;
41.2 	(iii) delivery of deed;
41.3 	(iv) responsibilities of buyer and seller;
41.4 	(A) taxes and liens;
41.5 	(B) reduction certificate (assumption statement);
41.6 	(C) insurance;
41.7 	(D) leases;
41.8 	(E) bill of sale;
41.9 	(F) title search;
41.10 	(G) survey;
41.11 	(H) certificate of occupancy;
41.12 	(I) violations (ordinances); and
41.13 	(J) apportionments;
41.14 	(v) adjournment of closing (settlement);
41.15 	(vi) Real Estate Settlement Procedures Act (RESPA):
41.16 	(A) lender requirements;
41.17 	(B) truth in lending (regulation Z); and
41.18 	(C) settlement (closing);
41.19 	(vii) responsibilities of broker;
41.20 	(viii) deeds:
41.21 	(A) parts of a deed:
41.22 	1. parties;
41.23 	2. consideration;
41.24 	3. words of conveyance;
41.25 	4. property description;
41.26 	5. appurtenances;
41.27 	6. habendum (estate);
41.28 	7. execution and acknowledgment; and
41.29 	8. seal;
41.30 	(B) delivery;
41.31 	(C) recording;
41.32 	(D) types of deeds:
41.33 	1. quitclaim;
41.34 	2. warranty deed and covenants;
41.35 	3. special warranty deed; and
41.36 	4. other;
42.1 	(E) covenants running with the land; and
42.2 	(F) validity;
42.3 	(3) search and examination of title:
42.4 	(i) object of search:
42.5 	(A) chain of title; and
42.6 	(B) recording acts;
42.7 	(ii) grantor-grantee system of indexing;
42.8 	(A) running the chain of title;
42.9 	(B) grantors;
42.10 	(C) mortgages;
42.11 	(D) lis pendens;
42.12 	(E) judgments;
42.13 	(F) liens;
42.14 	(G) taxes;
42.15 	(H) court with probate jurisdiction; and
42.16 	(I) special assessments; and
42.17 	(iii) lot and block indexing.
42.18 	(c) Real Estate Law, eight hours:
42.19 	(1) Real estate license law:
42.20 	(i) purpose of law and rules;
42.21 	(ii) administration of law:
42.22 	(A) Department of Commerce; and 
42.23 	(B) penalties for violation; and
42.24 	(iii) substantive provisions of law:
42.25 	(A) trust accounts;
42.26 	(B) prohibition of fraudulent, deceptive, or dishonest practices;
42.27 	(C) standards of conduct;
42.28 	(D) Real Estate Research and Recovery Fund; and
42.29 	(E) licensing and education requirements;
42.30 	(2) laws relating to agency;
42.31 	(3) subdivided land act:
42.32 	(i) scope of law;
42.33 	(ii) registration provisions; and
42.34 	(iii) licensing requirements;
42.35 	(4) Securities Act-potential applicability to real estate; and
42.36 	(5) appraiser licensing law.
43.1 	(d) Basic Law of Contracts, three hours:
43.2 	(1) definition;
43.3 	(2) essentials;
43.4 	(3) breach-remedies;
43.5 	(4) types of real estate contracts:
43.6 	(i) purchase agreement-parties to;
43.7 	(ii) listing agreement-parties to;
43.8 	(iii) contract for deed;
43.9 	(iv) options; and
43.10 	(v) lease; and
43.11 	(5) cancellation.
43.12 	(e) Principles of Financing, five hours:
43.13 	(1) types:
43.14 	(i) FHA;
43.15 	(ii) VA;
43.16 	(iii) Conventional/insured conventional;
43.17 	(iv) ARM;
43.18 	(v) other; and
43.19 	(vi) points;
43.20 	(2) sources of mortgage funds:
43.21 	(i) lenders;
43.22 	(ii) secondary mortgage market; and
43.23 	(iii) owner financing; and
43.24 	(3) usury.
43.25 	(f) Types and Classifications of Property, four hours:
43.26 	(1) residential construction, government regulation;
43.27 	(2) land development and use:
43.28 	(i) city planning; and
43.29 	(ii) zoning; and
43.30 	(3) condominiums, cooperatives, planned unit developments, common interest 
43.31 	communities, manufactured housing:
43.32 	(i) definitions;
43.33 	(ii) financing;
43.34 	(iii) licenses required to sell;
43.35 	(iv) homeowner's associations; and
43.36 	(v) bylaws.
44.1 	(g) Environmental Issues, three hours.
44.2 		Subd. 3.Course II. (a) Valuation, three hours:
44.3 	(1) evaluation vs. appraisal;
44.4 	(2) methods of valuation:
44.5 	(i) market approach;
44.6 	(ii) cost approach; and
44.7 	(iii) income approach; and
44.8 	(3) tax value.
44.9 	(b) Financing Applications, seven hours:
44.10 	(1) review of course I financing;
44.11 	(2) mortgages:
44.12 	(i) legal elements;
44.13 	(ii) theories:
44.14 	(A) lien; and
44.15 	(B) title;
44.16 	(iii) mortgage note; and
44.17 	(iv) assumption; and
44.18 	(3) foreclosure/default.
44.19 	(c) Contracts, 16 hours:
44.20 	(1) Review of course I contracts;
44.21 	(2) purchase agreement, essential elements;
44.22 	(3) listing agreement:
44.23 	(i) employment contract - broker; and
44.24 	(ii) essential elements; and
44.25 	(4) contract for deed, essential elements.
44.26 	(d) Fair housing, three hours:
44.27 	(1) Federal fair housing laws; and
44.28 	(2) state fair housing laws.
44.29 	(e) Real Estate Specialties, one hour.
44.30 		Subd. 4.Course III. Course III must be a 30-hour course consisting of one of the 
44.31 	courses in paragraphs (a) to (j).
44.32 	(a) Real Estate Appraisal:
44.33 	(1) nature, importance, and purposes of appraisals;
44.34 	(2) nature, importance, and characteristics of property and value;
44.35 	(3) principles controlling real estate value;
44.36 	(4) the appraisal process;
45.1 	(5) economic and neighborhood analysis;
45.2 	(6) considerations and fundamentals of site evaluation;
45.3 	(7) construction methods and materials;
45.4 	(8) architectural styles and utility;
45.5 	(9) cost approach; estimating costs and accrued depreciation;
45.6 	(10) analysis;
45.7 	(11) market data approach;
45.8 	(12) income approach; income and expense analysis, capitalization theory and 
45.9 	techniques;
45.10 	(13) reconciliation and final value estimate;
45.11 	(14) writing the report;
45.12 	(15) USPAP; and
45.13 	(16) course examination.
45.14 	(b) Closing Procedures:
45.15 	(1) overview of closing; persons present, protocol, timeliness;
45.16 	(2) review of purchase agreement, supplements, addendum;
45.17 	(3) compilation of data needed to prepare a closing file;
45.18 	(4) legal documents;
45.19 	(5) abstracts, title procedures;
45.20 	(6) review of settlement costs; buyer, seller;
45.21 	(7) closing statement; prorations and other math;
45.22 	(8) review of sample cases;
45.23 	(9) follow-up procedures; and
45.24 	(10) course examination.
45.25 	(c) Farm and Ranch Brokerage:
45.26 	(1) responsibilities of broker to seller and buyer;
45.27 	(2) selling options;
45.28 	(3) sources of financing;
45.29 	(4) factors in selecting a farm or ranch;
45.30 	(5) advantages and disadvantages of irrigation systems;
45.31 	(6) determination of farm and ranch value;
45.32 	(7) consideration in the constructing of purchase agreements; and
45.33 	(8) course examination.
45.34 	(d) Real Estate Finance:
45.35 	(1) introduction to the mortgage market;
45.36 	(2) sources of mortgage money;
46.1 	(3) real estate investment trusts and syndication;
46.2 	(4) mortgage banking;
46.3 	(5) financing residential properties;
46.4 	(6) financing income producing properties;
46.5 	(7) construction and land development loans;
46.6 	(8) special techniques used in financing real estate;
46.7 	(9) junior mortgages;
46.8 	(10) land contracts;
46.9 	(11) financing long-term leases; and
46.10 	(12) course examination.
46.11 	(e) Real Estate Investment:
46.12 	(1) real estate investments;
46.13 	(2) discounted cash flow analysis;
46.14 	(3) measuring investment returns;
46.15 	(4) estimation of real estate cash flows;
46.16 	(5) real estate financing;
46.17 	(6) the tax process;
46.18 	(7) acquisitions and operations;
46.19 	(8) dispositions and exchanges;
46.20 	(9) after-tax investment analysis;
46.21 	(10) speculative land investment;
46.22 	(11) multiple exchanges; and
46.23 	(12) course examination.
46.24 	(f) Real Estate Law:
46.25 	(1) the process of real estate law;
46.26 	(2) real estate brokerage;
46.27 	(3) contract for the sale of real estate;
46.28 	(4) property conveyance;
46.29 	(5) title insurance and closing;
46.30 	(6) property ownership and taxes;
46.31 	(7) estates in land and landlord/tenant relationships;
46.32 	(8) cooperatives, condominiums, and planned unit developments;
46.33 	(9) real estate lending and land use regulations; and
46.34 	(10) course examination.
46.35 	(g) Real Estate Management:
46.36 	(1) overview and economics of real estate management;
47.1 	(2) government involvement;
47.2 	(3) the management plan;
47.3 	(4) owner relations and record keeping;
47.4 	(5) marketing and leasing;
47.5 	(6) property operations:
47.6 	(i) tenant administration;
47.7 	(ii) physical plant maintenance; and
47.8 	(iii) staffing and employee relations;
47.9 	(7) residential management:
47.10 	(i) rental housing; and
47.11 	(ii) condominiums and cooperatives;
47.12 	(8) commercial management:
47.13 	(i) office building and special purpose properties; and
47.14 	(ii) shopping centers and retail properties;
47.15 	(9) the management office;
47.16 	(10) creative property management; and
47.17 	(11) course examination.
47.18 	(h) Business Brokerage:
47.19 	(1) business financial statements;
47.20 	(2) financial statement ratio analysis;
47.21 	(3) cash flow, rate of return, and break-even analysis;
47.22 	(4) competitive market analysis;
47.23 	(5) valuation of the business;
47.24 	(6) developing the business plan;
47.25 	(7) qualifying the buyer;
47.26 	(8) terms of the purchase agreement;
47.27 	(9) financing the business opportunity;
47.28 	(10) evaluation of business risk; and
47.29 	(11) course examination.
47.30 	(i) Commercial Real Estate:
47.31 	(1) types of commercial properties;
47.32 	(2) introduction to commercial real estate sales;
47.33 	(3) office leasing;
47.34 	(4) industrial leasing;
47.35 	(5) retail leasing;
47.36 	(6) business opportunity sales; and
48.1 	(7) course examination.
48.2 	(j) Residential Architecture and Construction:
48.3 	(1) architectural styles and designs;
48.4 	(2) blueprints and plans;
48.5 	(3) construction basics;
48.6 	(4) exteriors;
48.7 	(5) interiors;
48.8 	(6) mechanical systems; and
48.9 	(7) course examination.
48.10 	A combination course must consist of no more than three of the preceding ten subjects 
48.11 	and must devote at least ten hours to each subject. An education provider that proposes to 
48.12 	offer a combination course III must submit to the commissioner, as part of the application 
48.13 	for approval, an outline setting forth the subjects to be addressed and the number of hours 
48.14 	proposed to be devoted to each topic.
48.15 		Subd. 5.Broker course. The required course for real estate brokers must consist of 
48.16 	the subject hours in paragraphs (a) to (j).
48.17 	(a) Broker Licensing Requirements, three hours:
48.18 	(1) ownership and operational forms; and
48.19 	(2) Minnesota License Law Review.
48.20 	(b) Trust Account Requirements, two hours:
48.21 	(1) opening the trust account;
48.22 	(2) deposit requirements; and
48.23 	(3) trust account records.
48.24 	(c) Agency, five hours:
48.25 	(1) current statutes and agency law; and
48.26 	(2) statutory addenda and disclosures.
48.27 	(d) Antidiscrimination, three hours:
48.28 	(1) federal fair housing;
48.29 	(2) Americans with Disabilities Act; and
48.30 	(3) Minnesota Human Rights Act.
48.31 	(e) Real Estate Principles Update, one hour:
48.32 	(1) land improvement, estates;
48.33 	(2) legal descriptions;
48.34 	(3) governmental rights; and
48.35 	(4) property taxation and special assessments.
48.36 	(f) Real Estate Sale, Lease, and Transfer, two hours:
49.1 	(1) purchase agreement and addenda;
49.2 	(2) lease types and terms;
49.3 	(3) deed types and clauses; and
49.4 	(4) contract for deed.
49.5 	(g) Financing and Valuation Update, three hours:
49.6 	(1) sources of financing;
49.7 	(2) foreclosure law;
49.8 	(3) principles of value; and
49.9 	(4) methods of valuation.
49.10 	(h) Broker's Role in Closing, three hours:
49.11 	(1) prorating;
49.12 	(2) closing statements;
49.13 	(3) closing documents; and
49.14 	(4) deposit requirements.
49.15 	(i) Income Taxation, three hours:
49.16 	(1) tax rules of home ownership;
49.17 	(2) investment tax issues; and
49.18 	(3) sale of personal residence.
49.19 	(j) Employment Laws and Insurance, three hours:
49.20 	(1) Fair Labor Standards Act;
49.21 	(2) tax laws, withholding, reports;
49.22 	(3) independent contractor vs. employee;
49.23 	(4) State and Federal Unemployment Tax Act; and
49.24 	(5) errors and omissions insurance.
49.25 	(k) Final Exam.

49.26 	Sec. 59. Minnesota Statutes 2008, section 82.32, is amended to read:
49.27 	82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.
49.28 	(a) All real estate salespersons and all real estate brokers shall be required to 
49.29 	successfully complete 30 hours of real estate continuing education, either as a student or 
49.30 	a lecturer, in courses of study approved by the commissioner, during the initial license 
49.31 	period and during each succeeding 24-month license period. At least 15 of the 30 credit 
49.32 	hours must be completed during the first 12 months of the 24-month licensing period. 
49.33 	Licensees may not claim credit for continuing education not actually completed as of the 
49.34 	date their report of continuing education compliance is filed.
50.1 	(b) The commissioner may adopt rules defining the standards for course and 
50.2 	instructor approval, and may adopt rules for the proper administration of prelicense 
50.3 	instruction as required under section 82.29, subdivision 8, and continuing education 
50.4 	as required under this section and sections 82.29; 82.31, subdivisions 5 and 6; 82.33, 
50.5 	subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course which 
50.6 	can be completed by the student at home or outside the classroom without the supervision 
50.7 	of an instructor except accredited courses using new delivery technology, including 
50.8 	interactive technology, and the Internet. The commissioner may approve courses of study 
50.9 	in the real estate field offered in educational institutions of higher learning in this state or 
50.10 	courses of study in the real estate field developed by and offered under the auspices of the 
50.11 	National Association of Realtors, its affiliates, or private real estate schools. Courses in 
50.12 	motivation, salesmanship, psychology, or time management shall not be approved by the 
50.13 	commissioner for continuing education credit. The commissioner may approve courses in 
50.14 	any other subjects, including, but not limited to, communication, marketing, negotiation, 
50.15 	and technology for continuing education credit. 
50.16 	(c) Any program approved by Minnesota continuing legal education shall be 
50.17 	approved by the commissioner of commerce for continuing education for real estate 
50.18 	brokers and salespeople if the program or any part thereof relates to real estate.
50.19 	(d) (c) As part of the continuing education requirements of this section and sections 
50.20 	82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the 
50.21 	commissioner shall require that all real estate brokers and salespersons receive: 
50.22 	(1) at least one hour of training during each license period in courses in laws or 
50.23 	regulations on agency representation and disclosure; and
50.24 	(2) at least one hour of training during each license period in courses in state and 
50.25 	federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses 
50.26 	designed to help licensees to meet the housing needs of immigrant and other underserved 
50.27 	populations.
50.28 	Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers 
50.29 	engaged solely in the commercial real estate business who file with the commissioner 
50.30 	a verification of this status along with the continuing education report required under 
50.31 	paragraph (a).
50.32 	(e) (d) The commissioner is authorized to establish a procedure for renewal of 
50.33 	course accreditation.
50.34 	(f) (e) Approved continuing education courses may be sponsored or offered by 
50.35 	a broker of a real estate company and may be held on the premises of a company 
50.36 	licensed under this chapter. All continuing education course offerings must be open to 
51.1 	any interested individuals. Access may be restricted by the sponsoreducation provider 
51.2 	based on class size only. Courses must not be approved if attendance is restricted to any 
51.3 	particular group of people. A broker must comply with all continuing education rules 
51.4 	prescribed by the commissioner. The commissioner shall not approve any prelicense 
51.5 	instruction courses offered by, sponsored by, or affiliated with any person or company 
51.6 	licensed to engage in the real estate business.
51.7 	(g) (f) Credit may not be earned if the licensee has previously obtained credit for the 
51.8 	same course as either a student or instructor during the same licensing period.
51.9 	(h) (g) The real estate education course completion certificate must be in the form 
51.10 	set forth by the commissioner. Students are responsible for maintaining copies of course 
51.11 	completion certificates.
51.12 	(h) An approved prelicense 30-hour broker course may be used for continuing 
51.13 	education credit by a real estate salesperson or broker if the course is completed during 
51.14 	the appropriate licensing period.

51.15 	Sec. 60. [82B.021] DEFINITIONS.
51.16 		Subdivision 1.Scope. For the purposes of this chapter, the terms defined in this 
51.17 	section have the meanings given them.
51.18 		Subd. 2.Analysis. "Analysis" means a study of real estate or real property other 
51.19 	than estimating value.
51.20 		Subd. 3.Applicant. "Applicant" means an individual who has applied to the 
51.21 	commissioner of commerce pursuant to this chapter for a license as a real estate appraiser.
51.22 		Subd. 4.Appraisal assignment. "Appraisal assignment" means an engagement 
51.23 	for which an appraiser is employed or retained to act, or would be perceived by third 
51.24 	parties or the public as acting, as a disinterested third party in giving an unbiased analysis, 
51.25 	opinion, or conclusion relating to the nature, quality, value, or utility of named interests in, 
51.26 	or aspects of, identified real estate.
51.27 		Subd. 5.Appraisal Foundation or foundation. "Appraisal Foundation" or 
51.28 	"foundation" means the Appraisal Foundation established on November 30, 1987, as a 
51.29 	nonprofit corporation under the laws of Illinois.
51.30 		Subd. 6.Appraisal or real estate appraisal. "Appraisal" or "real estate appraisal" 
51.31 	means an analysis, opinion, or conclusion relating to the nature, quality, value, or utility 
51.32 	of named interests in, or aspects of, identified real estate for purposes of preparing an 
51.33 	appraisal report. An appraisal may be classified by subject matter into either a valuation 
51.34 	or an analysis.
52.1 		Subd. 7.Appraisal report. "Appraisal report" means an oral or written 
52.2 	communication of an appraisal for compensation that is not a contingent fee as defined in 
52.3 	section 82B.22 given or signed by a licensed real estate appraiser.
52.4 		Subd. 8.Appraisal Standards Board. "Appraisal Standards Board" means the 
52.5 	independent board of the Appraisal Foundation responsible for promulgation of minimum 
52.6 	appraisal standards for federally related transactions.
52.7 		Subd. 9.Appraiser Qualifications Board. "Appraiser Qualifications Board" means 
52.8 	the independent board of the Appraisal Foundation responsible for promulgation of 
52.9 	qualification criteria for licensure of real estate appraisers authorized to conduct appraisals 
52.10 	on federally related transactions, and for issuing or endorsing a uniform state real estate 
52.11 	appraiser qualification examination.
52.12 		Subd. 10.Board. "Board" means the Real Estate Appraisal Advisory Board 
52.13 	established under section 82B.05.
52.14 		Subd. 11.Certified general real property appraiser. "Certified general real 
52.15 	property appraiser" means an individual licensed under this chapter to perform appraisals 
52.16 	on all types of real property.
52.17 		Subd. 12.Certified residential real property appraiser. "Certified residential 
52.18 	real property appraiser" means an individual licensed under this chapter to perform 
52.19 	appraisals on one-family to four-family residential units or agricultural property regardless 
52.20 	of transaction value or complexity.
52.21 		Subd. 13.Commissioner. "Commissioner" means the commissioner of commerce.
52.22 		Subd. 14.Federal Appraisal Subcommittee. "Federal Appraisal Subcommittee" 
52.23 	means the appraisal subcommittee of the Federal Financial Institutions Examinations 
52.24 	Council under United States Code, title 12, section 3301 et. seq.
52.25 		Subd. 15.Federal financial institutions regulatory agency. "Federal financial 
52.26 	institutions regulatory agency" means the Board of Governors of the Federal Reserve 
52.27 	System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the 
52.28 	Currency, the Office of Thrift Supervision, or the National Credit Union Administration.
52.29 		Subd. 16.Federally related transaction. "Federally related transaction" means 
52.30 	any real estate related financial transaction that a federal financial institutions regulatory 
52.31 	agency or the federal Resolution Trust Corporation engages in, contracts for, or regulates; 
52.32 	and that requires the services of a licensed or certified real estate appraiser.
52.33 		Subd. 17.Foundation appraisal organization. "Foundation appraisal 
52.34 	organization" means a member private appraisal trade organization of the Appraisal 
52.35 	Foundation including, but not limited to, the following: American Institute of Real Estate 
52.36 	Appraisers, American Society of Appraisers, American Society of Farm Managers and 
53.1 	Rural Appraisers, International Association of Assessing Officers, International Right of 
53.2 	Way Association, National Association of Independent Fee Appraisers, National Society 
53.3 	of Real Estate Appraisers, or Society of Real Estate Appraisers.
53.4 		Subd. 18.Licensed real property appraiser. "Licensed real property appraiser" 
53.5 	means an individual licensed under this chapter to perform appraisals on noncomplex 
53.6 	one-family to four-family residential units or agricultural property having a transactional 
53.7 	value of less than $1,000,000 and complex one-family to four-family residential units or 
53.8 	agricultural property having a transactional value of less than $250,000.
53.9 		Subd. 19.Market analysis. "Market analysis" means a price opinion prepared by a 
53.10 	licensed real estate salesperson or broker for marketing purposes.
53.11 		Subd. 20.Person. "Person" means a natural person, firm, institution, partnership, 
53.12 	corporation, or association.
53.13 		Subd. 21.Real estate. "Real estate" means an identified parcel or tract of land, 
53.14 	including improvements, if any.
53.15 		Subd. 22.Real estate appraiser or real property appraiser. "Real estate 
53.16 	appraiser" or "real property appraiser" means a person who develops and communicates 
53.17 	appraisals on real property and holds a current, valid license issued under this chapter.
53.18 		Subd. 23.Real estate related financial transaction. "Real estate related financial 
53.19 	transaction" means any transaction involving the sale, lease, purchase, investment in, or 
53.20 	exchange of real property, including interests in property, or the financing thereof; the 
53.21 	refinancing of real property or interests in real property; and the use of real property or 
53.22 	interests in property as security for a loan or investments, including mortgage-backed 
53.23 	securities.
53.24 		Subd. 24.Real property. "Real property" means one or more defined interests, 
53.25 	benefits, and rights inherent in the ownership of real estate.
53.26 		Subd. 25.Residential real property or residential real estate. "Residential real 
53.27 	property" or "residential real estate" means property occupied by, or intended to be 
53.28 	occupied by, one to four families as their residence.
53.29 		Subd. 26.Standards of professional practice. "Standards of professional practice" 
53.30 	means the uniform standards of professional appraisal practice of the Appraisers Standards 
53.31 	Board of the Appraisal Foundation in effect as of January 1, 1991, or other version of 
53.32 	these standards the commissioner may by order designate.
53.33 		Subd. 27.Trainee real property appraiser. "Trainee real property appraiser" 
53.34 	means an individual licensed under this chapter to perform appraisals on residential 
53.35 	real property or agricultural acreage which does not require a net income capitalization 
53.36 	analysis under the uniform standards of professional appraisal practice.
54.1 		Subd. 28.Transaction value. "Transaction value" means:
54.2 	(1) for loans or other extensions of credit, the amount of the loan or extension of 
54.3 	credit;
54.4 	(2) for sales, leases, purchases, and investments in or exchanges of real property, the 
54.5 	market value of the real property interest involved; and
54.6 	(3) for the pooling of loans or interests in real property for resale or purchase, the 
54.7 	amount of the loan or market value of the real property calculated with respect to each 
54.8 	such loan or interest in real property.
54.9 		Subd. 29.USPAP. "USPAP" means the Uniform Standards of Professional 
54.10 	Appraisal Practice established by the Appraisal Foundation.
54.11 		Subd. 30.Valuation. "Valuation" means an estimate of value of real estate or 
54.12 	real property.

54.13 	Sec. 61. Minnesota Statutes 2008, section 82B.05, subdivision 1, is amended to read:
54.14 		Subdivision 1.Members. The Real Estate Appraiser Advisory Board consists 
54.15 	of 15 members appointed by the commissioner of commerce. Three of the members 
54.16 	must be public members, four must be consumers of appraisal services, and eight must 
54.17 	be real estate appraisers of whom not less than two members shall must be registered
54.18 	trainee real property appraisers, licensed real property appraisers, or certified residential 
54.19 	real property appraisers, not less than two members shall must be certified general real 
54.20 	property appraisers, and not less than one member shall must be certified by the Appraisal 
54.21 	Qualification Board of the Appraisal Foundation to teach the Uniform Standards of 
54.22 	Professional Appraisal Practice. The board is governed by section 15.0575.

54.23 	Sec. 62. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 
54.24 	to read:
54.25 		Subd. 8.Cancellation of license. A real estate appraiser's license must be 
54.26 	canceled by the commissioner for failure of a licensee to complete continuing education 
54.27 	requirements. In this case, the license must be returned to the commissioner within ten 
54.28 	days of receipt of notice of cancellation.

54.29 	Sec. 63. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 
54.30 	to read:
54.31 		Subd. 9.Reinstatement of license. Within two years of a license cancellation, a 
54.32 	person who was previously licensed may reinstate the license without examination by 
54.33 	completing the required application, paying the required fee for a new license application, 
55.1 	and reporting successful completion of all outstanding continuing education requirements 
55.2 	for the period during which the license was canceled. The license must be reinstated 
55.3 	without reexamination by completing the required instruction, filing an application, and 
55.4 	paying the fee for the license within two years of the cancellation date.

55.5 	Sec. 64. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 
55.6 	to read:
55.7 		Subd. 10.Withdrawal of license or application. A licensee or license applicant 
55.8 	may at any time file with the commissioner a request to withdraw from the status of 
55.9 	licensee or to withdraw a pending license application. Withdrawal from the status of 
55.10 	licensee or withdrawal of the license application becomes effective upon receipt by the 
55.11 	commissioner unless a revocation, suspension, or denial proceeding is pending when 
55.12 	the request to withdraw is filed or a proceeding to revoke, suspend, deny, or impose 
55.13 	condition upon the withdrawal is instituted within 30 days after the request to withdraw 
55.14 	is filed. If a proceeding is pending or instituted, withdrawal becomes effective at the 
55.15 	time and upon the conditions the commissioner by order determines. If no proceeding is 
55.16 	pending or instituted and withdrawal automatically becomes effective, the commissioner 
55.17 	must institute a revocation or suspension proceeding within one year after withdrawal 
55.18 	became effective and enter a revocation or suspension order as of the last date on which 
55.19 	the license was in effect.

55.20 	Sec. 65. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 
55.21 	to read:
55.22 		Subd. 11.Failure to renew license. If a license lapses or becomes ineffective due 
55.23 	to the licensee's failure to timely file a renewal application and the licensee continues 
55.24 	to conduct business for which a license is required, the commissioner must institute a 
55.25 	revocation or suspension proceeding within two years after the license was last effective 
55.26 	and enter a revocation or suspension order as of the last date on which the license was 
55.27 	in effect. 

55.28 	Sec. 66. Minnesota Statutes 2008, section 82B.09, is amended by adding a subdivision 
55.29 	to read:
55.30 		Subd. 3.Fees to federal appraisal subcommittee. In addition to the fees required 
55.31 	for licensure under this section, the commissioner must collect and remit such other fees 
55.32 	as are required by the Federal Appraisal Subcommittee.

56.1 	Sec. 67. Minnesota Statutes 2008, section 82B.10, is amended to read:
56.2 	82B.10 EXAMINATIONS.
56.3 		Subdivision 1.Generally. (a) An applicant for a license must pass an examination 
56.4 	conducted by the commissioner. The examinations must be of sufficient scope to establish 
56.5 	the competency of the applicant to act as a real estate appraiser and must conform 
56.6 	with the current National Uniform Exam Content Outlines published by the Appraiser 
56.7 	Qualifications Board.
56.8 	(b) A passing grade for a real estate appraiser licensing examination must be the cut 
56.9 	score defined by the Appraiser Qualifications Board criteria.
56.10 	(c) To qualify for a license as a trainee real property appraiser, an applicant must 
56.11 	pass a current trainee real property appraiser examination. The examination must test the 
56.12 	applicant's knowledge of appraisal terms, principles, theories, and ethics as provided 
56.13 	in this chapter.
56.14 	(d) To qualify for a license as a licensed real property appraiser, an applicant must 
56.15 	pass a current uniform licensed real property appraiser examination approved by the 
56.16 	Appraiser Qualifications Board. The examination must test the applicant's knowledge of 
56.17 	appraisal terms, principles, theories, and ethics as provided in this chapter.
56.18 	(e) To qualify for a license as a certified residential real property appraiser, an 
56.19 	applicant must pass a current uniform certified residential real property appraiser 
56.20 	examination approved by the Appraiser Qualifications Board. The examination must test 
56.21 	the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided 
56.22 	in this chapter.
56.23 	(f) To qualify for a license as a certified general real property appraiser, an applicant 
56.24 	must pass a current uniform certified general real property appraiser examination approved 
56.25 	by the Appraiser Qualifications Board. The examination must test the applicant's 
56.26 	knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.
56.27 		Subd. 2.Reexaminations. An examination must be required before renewal of a 
56.28 	license that has been suspended, or before the issuance of a license to a person whose 
56.29 	license has been ineffective for a period of two years. No reexamination is required of an 
56.30 	individual who has failed to renew an existing license because of absence from the state 
56.31 	while on active duty with the armed services of the United States of America.
56.32 		Subd. 3.Examination frequency. The commissioner shall must hold examinations 
56.33 	at times and places the commissioner determines.
56.34 		Subd. 4.Period for application. An applicant who obtains an acceptable score 
56.35 	on an examination must file an application and obtain the license within two years of 
57.1 	the date of successful completion of the examination or a second examination must be 
57.2 	taken to qualify for the license.
57.3 		Subd. 5.Renewal; examination. Except as provided in subdivision 2, no 
57.4 	examination is required for the renewal of a license. However, a licensee who has been 
57.5 	licensed in the state of Minnesota and who fails to renew the license for a period of two 
57.6 	years must be required by the commissioner to again take an examination.
57.7 		Subd. 6.Examination eligibility; revocation. No applicant may take an 
57.8 	examination if a license as a real estate appraiser has been revoked in this or another state 
57.9 	within two years of the date of the application.
57.10 		Subd. 7.Reciprocity. This section may be waived by the commissioner for 
57.11 	individuals of other jurisdictions if: (1) a written reciprocal licensing agreement is in effect 
57.12 	between the commissioner and the licensing officials of that jurisdiction, (2) the individual 
57.13 	is licensed in that jurisdiction, and (3) the licensing requirements of that jurisdiction are 
57.14 	substantially similar to the provisions of this chapter.
57.15 		Subd. 8.Fees. The commissioner may assess an examination fee sufficient to 
57.16 	recover the actual direct costs of holding the examination.
57.17 		Subd. 9.Cheating. The commissioner must not accept the scores of a person who 
57.18 	has cheated on an examination. Cheating on a real estate appraiser examination must be 
57.19 	grounds for denying an application for an appraiser's license.

57.20 	Sec. 68. Minnesota Statutes 2008, section 82B.13, subdivision 4, is amended to read:
57.21 		Subd. 4.Certified residential real property appraiser. As a prerequisite for 
57.22 	licensing as a certified residential real property appraiser, an applicant must present 
57.23 	evidence satisfactory to the commissioner that the person has successfully completed at 
57.24 	least 120 classroom hours of prelicense courses, with particular emphasis on the appraisal 
57.25 	of one to four unit residential properties. Fifteen of the 120 hours must include successful 
57.26 	completion of the 15-hour national USPAP course.
57.27 	After January 1, 2008, a certified residential real property appraiser applicant 
57.28 	must present evidence satisfactory to the commissioner that the person has successfully 
57.29 	completed:
57.30 	(1) 200 hours of prelicense courses approved by the commissioner; and
57.31 	(2) an associate degree from an accredited college or university. In lieu of the 
57.32 	required degree the applicant may present satisfactory documentation of completion of 
57.33 	21 semester credit hours from an accredited college or university covering the following 
57.34 	subject matter courses: English composition; principles of economics (micro or macro); 
57.35 	finance; algebra, geometry, or higher mathematics; statistics; introduction to computer 
58.1 	word processing/spreadsheets computer science; and business or real estate law. If an 
58.2 	applicant has completed education requirements before January 1, 2008, no college 
58.3 	degree is required.

58.4 	Sec. 69. Minnesota Statutes 2008, section 82B.13, subdivision 5, is amended to read:
58.5 		Subd. 5.Certified general real property appraiser. As a prerequisite for 
58.6 	licensing as a certified general real property appraiser, an applicant must present evidence 
58.7 	satisfactory to the commissioner that the person has successfully completed at least 180 
58.8 	classroom hours of prelicense courses, with particular emphasis on the appraisal of 
58.9 	nonresidential properties. Fifteen of the 180 hours must include successful completion of 
58.10 	the 15-hour national USPAP course.
58.11 	After January 1, 2008, a certified general real property appraiser applicant must 
58.12 	present evidence satisfactory to the commissioner that the person has successfully 
58.13 	completed:
58.14 	(1) 300 hours of prelicense courses approved by the commissioner; and
58.15 	(2) a bachelor's degree from an accredited college or university. In lieu of the 
58.16 	required degree the applicant may present satisfactory documentation of completion of 
58.17 	30 semester credit hours from an accredited college or university covering the following 
58.18 	subject matters courses: English composition; micro economics; macro economics; 
58.19 	finance; algebra, geometry, or higher mathematics; statistics; introduction to computer 
58.20 	word processing/spreadsheets computer science; business or real estate law; and two 
58.21 	elective courses in accounting, geography, ag-economics, business management, or real 
58.22 	estate. If an applicant has complete education requirements before January 1, 2008, no 
58.23 	college degree is required.

58.24 	Sec. 70. Minnesota Statutes 2008, section 82B.13, subdivision 6, is amended to read:
58.25 		Subd. 6.All appraiser license levels. To receive approval from the commissioner, 
58.26 	an appraiser prelicense education course must be at least 15 hours long. The required 
58.27 	course hours for all appraiser license levels include completion of the 15-hour national 
58.28 	USPAP course and specific core curriculum courses and hours in accordance with the real 
58.29 	property appraiser qualification criteria as defined by the Appraisal Qualifications Board:

58.30	Trainee
		
58.31	Basic appraisal principles
	30 hours
	
58.32	Basic appraisal procedures
	30 hours
	
58.33	The 15-hour national USPAP course or its equivalent
	15 hours
	
58.34	Trainee level total education requirements
	75 hours

59.1	Licensed
		
59.2	Basic appraisal principles
	30 hours
	
59.3	Basic appraisal procedures
	30 hours
	
59.4	The 15-hour national USPAP course or its equivalent
	15 hours
	
59.5	Residential market analysis and highest and best use
	15 hours
	
59.6	Residential appraiser site valuation and cost approach
	15 hours
	
59.7	Residential sales comparison and income approaches
	30 hours
	
59.8	Residential report writing and case studies
	15 hours
	
59.9	Licensed level total education requirements
	150 hours

59.10	Certified residential
		
59.11	Basic appraisal principles
	30 hours
	
59.12	Basic appraisal procedures
	30 hours
	
59.13	The 15-hour national USPAP course or its equivalent
	15 hours
	
59.14	Residential market analysis and highest and best use
	15 hours
	
59.15	Residential appraiser site valuation and cost approach
	15 hours
	
59.16	Residential sales comparison and income approaches
	30 hours
	
59.17	Residential report writing and case studies
	15 hours
	
59.18	Statistics, modeling, and finance
	15 hours
	
59.19	Advanced residential applications and case studies
	15 hours
	
59.20	Appraisal subject matter electives
	20 hours
	
59.21	(May include hours over minimum shown above in other modules)
		
59.22	Certified residential level total education requirements
	200 hours

59.23	Certified general
		
59.24	Basic appraisal principles
	30 hours
	
59.25	Basic appraisal procedures
	30 hours
	
59.26	The 15-hour national USPAP course or its equivalent
	15 hours
	
59.27	General appraiser market analysis and highest and best use
	30 hours
	
59.28	Statistics, modeling, and finance
	15 hours
	
59.29	General appraiser sales comparison approach
	30 hours
	
59.30	General appraiser site valuation and cost approach
	30 hours
	
59.31	General appraiser income approach
	60 hours
	
59.32	General appraiser report writing and case studies
	30 hours
	
59.33	Appraisal subject matter electives
	30 hours
	
59.34	(May include hours over minimum shown above in other modules)
		
59.35	Certified general level total education requirements
	300 hours

59.36 	Sec. 71. [82B.135] COURSE COMPLETION CERTIFICATIONS FOR REAL 
59.37 	ESTATE APPRAISER LICENSE.
59.38 		Subdivision 1.Submitting to commissioner. An applicant for a real estate appraiser 
59.39 	license must submit to the commissioner, along with an application for licensure, a copy 
60.1 	of the course completion certificate for all required prelicensing education coursework 
60.2 	applicable to the class of license sought.
60.3 		Subd. 2.Forms. The real estate appraiser prelicensing education course completion 
60.4 	certificate must be on forms provided by the commissioner.
60.5 		Subd. 3.Copies to be maintained. Students are responsible for maintaining copies 
60.6 	of course completion certificates.

60.7 	Sec. 72. Minnesota Statutes 2008, section 82B.19, subdivision 1, is amended to read:
60.8 		Subdivision 1.License renewals. (a) A licensed real estate appraiser shall must
60.9 	present evidence satisfactory to the commissioner of having met the continuing education 
60.10 	requirements of this chapter before the commissioner renews a license.
60.11 	The basic continuing education requirement for renewal of a license is the 
60.12 	completion by the applicant either as a student or as an instructor, during the immediately 
60.13 	preceding term of licensing, of at least 30 classroom hours of instruction in courses or 
60.14 	seminars that have received the approval of the commissioner. Classroom hour credit 
60.15 	must not be accepted for courses of less than two hours. As part of the continuing 
60.16 	education requirements of this section, the commissioner shall must require that all real 
60.17 	estate appraisers successfully complete the seven-hour national USPAP update course 
60.18 	every two years. If the applicant's immediately preceding term of licensing consisted of 
60.19 	12 six or more months, but fewer than 24 months, the applicant must provide evidence of 
60.20 	completion of 15 hours of instruction during the license period. The credit hours required 
60.21 	under this section may be credited to a person for distance education courses that meet 
60.22 	Appraiser Qualifications Board criteria. An approved prelicense education course may 
60.23 	be taken for continuing education credit.
60.24 	(b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete 
60.25 	the seven-hour national USPAP update course every two years.
60.26 	(c) Notwithstanding section 326.56, subdivision 2, a licensed real estate appraiser 
60.27 	returning from active military duty may be placed in active status for a period of up to 90 
60.28 	days pending completion of all continuing education requirements.

60.29 	Sec. 73. Minnesota Statutes 2008, section 82B.19, subdivision 2, is amended to read:
60.30 		Subd. 2.Rules. (a) The commissioner may adopt rules to assure that persons 
60.31 	renewing their licenses as licensed real estate appraisers have current knowledge of real 
60.32 	property appraisal theories, practices, and techniques that will provide a high degree 
60.33 	of service and protection to those members of the public with whom they deal in a 
60.34 	professional relationship under authority of their license.
61.1 	(b) To the extent the commissioner considers it appropriate, courses or parts of 
61.2 	courses may be considered to satisfy both continuing education requirements under this 
61.3 	section and continuing real estate education requirements.
61.4 	(c) As a prerequisite for course approval, sponsors shall education providers must
61.5 	submit proposed monitoring methods, and systems for recording attendance sufficient to 
61.6 	ensure that participants receive course credit only for portions actually attended.

61.7 	Sec. 74. [82B.195] STANDARDS OF CONDUCT.
61.8 		Subdivision 1.Compliance with uniform standards of professional appraisal 
61.9 	practice. In addition to an act compelled or prohibited by this chapter, an appraiser 
61.10 	must act according to the standards of professional appraisal practice defined in section 
61.11 	82B.021, subdivision 31.
61.12 		Subd. 2.Disclosure requirements. In addition to the requirements of the standards 
61.13 	of professional appraisal practice as defined by section 82B.021, subdivision 31, an 
61.14 	appraiser must, prior to performing any appraisal service which requires licensing 
61.15 	pursuant to this chapter, disclose in writing to the person contracting for the appraisal 
61.16 	service the information identified in clause (4). In addition, an appraiser must prepare a 
61.17 	written disclosure providing the information identified in clauses (1) to (13). The written 
61.18 	disclosure must be included as part of the final written appraisal report. As specified in 
61.19 	this subdivision, an appraiser must:
61.20 	(1) disclose who has employed the appraiser;
61.21 	(2) disclose who the appraisal is rendered for, if not the person who employed 
61.22 	the appraiser;
61.23 	(3) disclose the purpose of the appraisal, including an explanation of the difference 
61.24 	between the appraisal being given and an appraisal of fee simple market valuation;
61.25 	(4) disclose any conflict of interest or situation which might reasonably be perceived 
61.26 	to be a conflict of interest which must include, but not be limited to, the following 
61.27 	situations:
61.28 	(i) whether the appraiser has any ownership interest in the subject property or 
61.29 	contiguous properties;
61.30 	(ii) whether there is an ownership interest by a spouse, parent, or child of the 
61.31 	appraiser in the property or contiguous properties; and
61.32 	(iii) whether the appraiser has a continuing business relationship with one of the 
61.33 	parties, for example, any part-time or full-time employment of the appraiser, spouse, 
61.34 	children living at home, or dependent children.
62.1 	Failure to promptly give notification of a conflict must be considered a violation of 
62.2 	the standards of professional appraisal practice;
62.3 	(5) disclose that the appraisal is a reevaluation and identify the areas of difference 
62.4 	between the two appraisals and the justification for the changes;
62.5 	(6) disclose any facts concerning the valuation needed for loan purposes or similar 
62.6 	information that was provided to the appraiser before or during the appraisal;
62.7 	(7) disclose that the appraiser has not performed appraisals of the type requested or 
62.8 	for the type of property to be appraised as a regular part of the appraiser's business in the 
62.9 	preceding five-year period, provided that if the appraiser asserts qualification by training 
62.10 	or related experience to perform the appraisal, the appraiser must set forth the training or 
62.11 	experience and how it is applicable to the appraisal;
62.12 	(8) disclose the license classification of the appraiser and the types of appraisals that 
62.13 	the appraiser is authorized to conduct under the licensure;
62.14 	(9) disclose any lack of experience or training that would affect the ability of the 
62.15 	appraiser to perform the appraisal or could cause rejection of the appraisal by the party 
62.16 	requiring the appraisal;
62.17 	(10) disclose any appraisal on the same property made by the appraiser in the last 
62.18 	three years;
62.19 	(11) disclose all pertinent assumptions upon which a valuation based upon income 
62.20 	from the property is derived such as expected occupancy rates, rental rates, construction of 
62.21 	future improvements, roads, or highways;
62.22 	(12) prior to performing the appraisal, disclose whether the appraiser has previously 
62.23 	been to the property; and
62.24 	(13) disclose any other fact or circumstance that could bring the reliability of the 
62.25 	appraisal or the impartiality of the appraiser into question.
62.26 		Subd. 3.Additional requirements. In addition to the requirements of subdivisions 
62.27 	1 and 2, an appraiser must:
62.28 	(1) not knowingly make any of the following unacceptable appraisal practices:
62.29 	(i) include inaccurate or misleading factual data about the subject neighborhood, 
62.30 	site, improvements, or comparable sales;
62.31 	(ii) fail to comment on negative factors with respect to the subject neighborhood, 
62.32 	subject property, or proximity of the subject property to adverse influences;
62.33 	(iii) unless otherwise disclosed in the appraisal report, use comparables in the 
62.34 	valuation process that the appraiser has not at least personally inspected from the exterior 
62.35 	by driving by them;
63.1 	(iv) select and use inappropriate comparable sales or fail to use comparables that are 
63.2 	physically and by location the most similar to the subject property;
63.3 	(v) use data, particularly comparable sales data, that was provided by parties who 
63.4 	have a financial interest in the sale or financing of the subject property without the 
63.5 	appraiser's verification of the information from a disinterested source. For example, it 
63.6 	would be inappropriate for an appraiser to use comparable sales provided by the builder 
63.7 	of the subject property or a real estate broker who is handling the sale of the subject 
63.8 	property, unless the appraiser verifies the accuracy of the data provided through another 
63.9 	source. If a signed HUD Settlement Statement is used for this verification, the appraiser 
63.10 	must also verify the sale data with the buyer or county records. The appraiser must also 
63.11 	make an independent investigation to determine that the comparable sales provided were 
63.12 	the best ones available;
63.13 	(vi) use adjustments to the comparable sales that do not reflect the market's reaction 
63.14 	to the differences between the subject property and the comparables, or fail to make 
63.15 	adjustments when they are clearly indicated;
63.16 	(vii) develop a valuation conclusion that is based either partially or completely on 
63.17 	factors identified in chapter 363A, including race, color, creed, religion, sex, marital status, 
63.18 	status with regard to public assistance, disability, sexual orientation, familial status of the 
63.19 	owner or occupants of nearby property, or national origin of either the prospective owners 
63.20 	or occupants of the properties in the vicinity of the subject property; or
63.21 	(viii) develop a valuation conclusion that is not supported by available market data;
63.22 	(2) provide a resume, current within six months of the date it is provided, to anyone 
63.23 	who employs the appraiser, indicating all professional degrees and licenses held by the 
63.24 	appraiser; and
63.25 	(3) reject any request by the person who has employed the appraiser that is in conflict 
63.26 	with the requirements of Minnesota law or this chapter and withdraw from the appraisal 
63.27 	assignment if the employing party persists in the request.
63.28 		Subd. 4.Enforcement. Failure to comply with the provisions of this section is a 
63.29 	prohibited practice under section 82B.20, subdivision 2, clause (17).

63.30 	Sec. 75. Minnesota Statutes 2008, section 82B.20, is amended by adding a subdivision 
63.31 	to read:
63.32 		Subd. 3.Revocations. If the commissioner finds that any licensee or applicant is no 
63.33 	longer in existence or has ceased to do business as a real estate appraiser or is subject to 
63.34 	an adjudication of mental incompetence or to the control of a committee, conservator, or 
64.1 	guardian, or cannot be located after reasonable search, the commissioner may by order 
64.2 	revoke the license or deny the application of that person.

64.3 	Sec. 76.  REPEALER.
 64.4 	(a) Minnesota Statutes 2008, sections 72B.02, subdivision 12; 72B.04; and 82B.02,
64.5 	are repealed.
64.6 	(b) Minnesota Rules, parts 2808.0100; 2808.1000; 2808.1100; 2808.1200; 
64.7 	2808.1300; 2808.1400; 2808.1500; 2808.1600; 2808.1700; 2808.2000; 2808.2100; 
64.8 	2808.6000; 2808.7000; 2808.7100; 2809.0010; 2809.0020; 2809.0030; 2809.0040; 
64.9 	2809.0050; 2809.0060; 2809.0070; 2809.0080; 2809.0090; 2809.0100; 2809.0110; 
64.10 	2809.0120; 2809.0130; 2809.0140; 2809.0150; 2809.0160; 2809.0170; 2809.0180; 
64.11 	2809.0190; 2809.0200; 2809.0210; and 2809.0220, are repealed.

64.12 	Sec. 77. EFFECTIVE DATE.
 64.13 	Sections 1 to 76 are effective July 1, 2010.