<a id="pl.1.3"></a><var>1.3</var>management companies; regulating the real estate appraiser advisory board; <br/>
<a id="pl.1.4"></a><var>1.4</var>appropriating money;amending Minnesota Statutes 2008, sections 82B.05, <br/>
<a id="pl.1.5"></a><var>1.5</var>subdivision 5, by adding a subdivision; 82B.06; Minnesota Statutes 2009 <br/>
<a id="pl.1.6"></a><var>1.6</var>Supplement, section 82B.05, subdivision 1; proposing coding for new law as <br/>
<a id="pl.1.7"></a><var>1.7</var>Minnesota Statutes, chapter 82C.<br/>
<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.11"></a><var>1.11</var>    Section 1. <b>[82C.01] TITLE.</b><br/>
<a id="pl.1.12"></a><var>1.12</var>This chapter shall be known as the Minnesota Appraisal Management Company <br/>
<a id="pl.1.13"></a><var>1.13</var>Licensing and Regulation Act.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.1.14"></a><var>1.14</var>    Sec. 2. <b>[82C.02] DEFINITIONS.</b><br/>
<a id="pl.1.15"></a><var>1.15</var>    Subdivision 1. <b>Terms.</b> As used in this chapter, the terms in this section have the <br/>
<a id="pl.1.16"></a><var>1.16</var>meanings given them.<br/>
<a id="pl.1.17"></a><var>1.17</var>    Subd. 2. <b>Appraisal.</b> In conformance with the Uniform Standards of Professional <br/>
<a id="pl.1.18"></a><var>1.18</var>Appraisal Practice (USPAP), "appraisal" is defined as: (noun) the act or process of <br/>
<a id="pl.1.19"></a><var>1.19</var>developing an opinion of value; an opinion of value; (adjective) of or pertaining to <br/>
<a id="pl.1.20"></a><var>1.20</var>appraising and related functions such as appraisal practice or appraisal services. For <br/>
<a id="pl.1.21"></a><var>1.21</var>purposes of this chapter, all appraisals or assignments that are referred to involve one to <br/>
<a id="pl.1.22"></a><var>1.22</var>four unit single-family properties.<br/>
<a id="pl.1.23"></a><var>1.23</var>    Subd. 3. <b>Appraisal assignment.</b> "Appraisal assignment" means an engagement for <br/>
<a id="pl.1.24"></a><var>1.24</var>which an appraiser is employed or retained to act, as a disinterested third party in giving <br/>
<a id="pl.2.1"></a><var>2.1</var>an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility <br/>
<a id="pl.2.2"></a><var>2.2</var>of named interests in, or aspects of, identified real estate.<br/>
<a id="pl.2.3"></a><var>2.3</var>    Subd. 4. <b>Appraisal management company.</b> "Appraisal management company" <br/>
<a id="pl.2.4"></a><var>2.4</var>means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business <br/>
<a id="pl.2.5"></a><var>2.5</var>entity that directly or indirectly performs the following appraisal management services:<br/>
<a id="pl.2.6"></a><var>2.6</var>(1) administers networks of independent contractors and/or employee appraisers to <br/>
<a id="pl.2.7"></a><var>2.7</var>perform residential real estate appraisal assignments for clients;<br/>
<a id="pl.2.8"></a><var>2.8</var>(2) receives requests for residential real estate appraisal services from clients and, for <br/>
<a id="pl.2.9"></a><var>2.9</var>a fee paid by the client, enters into an agreement with one or more independent appraisers <br/>
<a id="pl.2.10"></a><var>2.10</var>to perform the real estate appraisal services contained in the request; or<br/>
<a id="pl.2.11"></a><var>2.11</var>(3) serves as a third-party broker of appraisal management services between clients <br/>
<a id="pl.2.12"></a><var>2.12</var>and appraisers.<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subd. 5. <b>Appraisal management services.</b> "Appraisal management services" <br/>
<a id="pl.2.14"></a><var>2.14</var>means the process of directly or indirectly performing any of the following functions on <br/>
<a id="pl.2.15"></a><var>2.15</var>behalf of a lender, financial institution, client, or any other person to:<br/>
<a id="pl.2.16"></a><var>2.16</var>(1) administer an appraiser panel;<br/>
<a id="pl.2.17"></a><var>2.17</var>(2) recruit, qualify, verify licensing or certification, and negotiate fees and service <br/>
<a id="pl.2.18"></a><var>2.18</var>level expectations with persons who are part of an appraiser panel;<br/>
<a id="pl.2.19"></a><var>2.19</var>(3) receive an order for an appraisal from one person, and deliver the order for the <br/>
<a id="pl.2.20"></a><var>2.20</var>appraisal to an appraiser that is part of an appraiser panel for completion;<br/>
<a id="pl.2.21"></a><var>2.21</var>(4) track and determine the status of orders for appraisals;<br/>
<a id="pl.2.22"></a><var>2.22</var>(5) conduct quality control of a completed appraisal prior to the delivery of the <br/>
<a id="pl.2.23"></a><var>2.23</var>appraisal to the person that ordered the appraisal; or<br/>
<a id="pl.2.24"></a><var>2.24</var>(6) provide a completed appraisal performed by an appraiser to one or more clients.<br/>
<a id="pl.2.25"></a><var>2.25</var>    Subd. 6. <b>Appraiser.</b> "Appraiser" means a person who is expected to perform <br/>
<a id="pl.2.26"></a><var>2.26</var>valuation services competently and in a manner that is independent, impartial, and <br/>
<a id="pl.2.27"></a><var>2.27</var>objective, and who is licensed under chapter 82B.<br/>
<a id="pl.2.28"></a><var>2.28</var>    Subd. 7. <b>Appraiser panel.</b> "Appraiser panel" means a network of licensed or <br/>
<a id="pl.2.29"></a><var>2.29</var>certified appraisers who are independent contractors to the appraisal management <br/>
<a id="pl.2.30"></a><var>2.30</var>company that have:<br/>
<a id="pl.2.31"></a><var>2.31</var>(1) responded to an invitation, request, or solicitation from an appraisal management <br/>
<a id="pl.2.32"></a><var>2.32</var>company, in any form, to perform appraisals for persons that have ordered appraisals <br/>
<a id="pl.2.33"></a><var>2.33</var>through the appraisal management company, or to perform appraisals for the appraisal <br/>
<a id="pl.2.34"></a><var>2.34</var>management company directly, on a periodic basis, as requested and assigned by the <br/>
<a id="pl.2.35"></a><var>2.35</var>appraisal management company; and<br/>
<a id="pl.3.1"></a><var>3.1</var>(2) been selected and approved by an appraisal management company to perform <br/>
<a id="pl.3.2"></a><var>3.2</var>appraisals for any client of the appraisal management company that has ordered an <br/>
<a id="pl.3.3"></a><var>3.3</var>appraisal through the appraisal management company, or to perform appraisals for the <br/>
<a id="pl.3.4"></a><var>3.4</var>appraisal management company directly, on a periodic basis, as assigned by the appraisal <br/>
<a id="pl.3.5"></a><var>3.5</var>management company.<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 8. <b>Appraisal review.</b> "Appraisal review" means the act of developing <br/>
<a id="pl.3.7"></a><var>3.7</var>and communicating an opinion about the quality of another appraiser's work that was <br/>
<a id="pl.3.8"></a><var>3.8</var>performed as part of an appraisal assignment, except that an examination of an appraisal <br/>
<a id="pl.3.9"></a><var>3.9</var>for grammatical, typographical, or other similar errors that do not make a substantive <br/>
<a id="pl.3.10"></a><var>3.10</var>valuation change shall not be an appraisal review.<br/>
<a id="pl.3.11"></a><var>3.11</var>    Subd. 9. <b>Client.</b> "Client" means any person or entity that contracts with, or <br/>
<a id="pl.3.12"></a><var>3.12</var>otherwise enters into an agreement with, an appraisal management company for the <br/>
<a id="pl.3.13"></a><var>3.13</var>performance of real estate appraisal services or appraisal management services. For <br/>
<a id="pl.3.14"></a><var>3.14</var>purposes of this chapter, the appraisal management company is the party engaging the <br/>
<a id="pl.3.15"></a><var>3.15</var>independent appraiser and can be the appraiser's client. However, this does not preclude <br/>
<a id="pl.3.16"></a><var>3.16</var>an appraisal management company from acting as a duly authorized agent for a lender.<br/>
<a id="pl.3.17"></a><var>3.17</var>    Subd. 10. <b>Commissioner.</b> "Commissioner" means the commissioner of commerce.<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 11. <b>Controlling person.</b> "Controlling person" means:<br/>
<a id="pl.3.19"></a><var>3.19</var>(1) any owner, officer, or director of an appraisal management company seeking to <br/>
<a id="pl.3.20"></a><var>3.20</var>offer appraisal management services in this state;<br/>
<a id="pl.3.21"></a><var>3.21</var>(2) an individual employed, appointed, or authorized by an appraisal management <br/>
<a id="pl.3.22"></a><var>3.22</var>company that has the authority to enter into a contractual relationship with other persons <br/>
<a id="pl.3.23"></a><var>3.23</var>for the performance of appraisal management services and has the authority to enter into <br/>
<a id="pl.3.24"></a><var>3.24</var>agreements with appraisers for the performance of appraisals;<br/>
<a id="pl.3.25"></a><var>3.25</var>(3) an individual who possesses, directly or indirectly, the power to direct or cause <br/>
<a id="pl.3.26"></a><var>3.26</var>the direction of the management or policies of an appraisal management company; or<br/>
<a id="pl.3.27"></a><var>3.27</var>(4) an individual who enters into:<br/>
<a id="pl.3.28"></a><var>3.28</var>(i) contractual relationships with clients for the performance of appraisal <br/>
<a id="pl.3.29"></a><var>3.29</var>management services; and<br/>
<a id="pl.3.30"></a><var>3.30</var>(ii) agreements with employed and independent appraisers for the performance <br/>
<a id="pl.3.31"></a><var>3.31</var>of real estate appraisal services.<br/>
<a id="pl.3.32"></a><var>3.32</var>    Subd. 12. <b>Employee.</b> "Employee" means an individual who is treated as an <br/>
<a id="pl.3.33"></a><var>3.33</var>employee for purposes of compliance with federal income tax laws.<br/>
<a id="pl.3.34"></a><var>3.34</var>    Subd. 13. <b>Person.</b> "Person" means a natural person, firm, partnership, limited <br/>
<a id="pl.3.35"></a><var>3.35</var>liability partnership, corporation, association, limited liability company, or other form of <br/>
<a id="pl.3.36"></a><var>3.36</var>business organization and the officers, directors, employees, or agents of that person.<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 14. <b>USPAP.</b> "USPAP" means the Uniform Standards of Professional <br/>
<a id="pl.4.2"></a><var>4.2</var>Appraisal Practice as established by the Appraisal Foundation. State and federal regulatory <br/>
<a id="pl.4.3"></a><var>4.3</var>authorities enforce the content of the current or applicable edition of USPAP.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.4"></a><var>4.4</var>    Sec. 3. <b>[82C.03] LICENSING.</b><br/>
<a id="pl.4.5"></a><var>4.5</var>    Subdivision 1. <b>Requirement.</b> It is unlawful for a person, corporation, partnership, <br/>
<a id="pl.4.6"></a><var>4.6</var>sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly <br/>
<a id="pl.4.7"></a><var>4.7</var>engage or attempt to engage in business as an appraisal management company, to directly <br/>
<a id="pl.4.8"></a><var>4.8</var>or indirectly engage or attempt to perform appraisal management services, or to advertise <br/>
<a id="pl.4.9"></a><var>4.9</var>or hold itself out as engaging in or conducting business as an appraisal management <br/>
<a id="pl.4.10"></a><var>4.10</var>company without first obtaining a license issued by the commissioner under the provisions <br/>
<a id="pl.4.11"></a><var>4.11</var>of this chapter.<br/>
<a id="pl.4.12"></a><var>4.12</var>    Subd. 2. <b>Owner requirements.</b> (a) An appraisal management company applying to <br/>
<a id="pl.4.13"></a><var>4.13</var>the commissioner for a license in this state may not be more than ten percent owned by <br/>
<a id="pl.4.14"></a><var>4.14</var>any person that is currently subject to any cease and desist order or injunctive order that <br/>
<a id="pl.4.15"></a><var>4.15</var>would preclude involvement with an appraisal management company, or that has ever:<br/>
<a id="pl.4.16"></a><var>4.16</var>(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification, <br/>
<a id="pl.4.17"></a><var>4.17</var>registration or license, or an appraisal management company license;<br/>
<a id="pl.4.18"></a><var>4.18</var>(2) been the subject of a final order revoking or denying an appraiser certification, <br/>
<a id="pl.4.19"></a><var>4.19</var>registration or license, or an appraisal management company license;  or<br/>
<a id="pl.4.20"></a><var>4.20</var>(3) a final order barring involvement in any industry or profession issued by this or <br/>
<a id="pl.4.21"></a><var>4.21</var>another state or federal regulatory agency.<br/>
<a id="pl.4.22"></a><var>4.22</var>(b) A person that owns more than ten percent of an appraisal management company <br/>
<a id="pl.4.23"></a><var>4.23</var>in this state shall:<br/>
<a id="pl.4.24"></a><var>4.24</var>(1) be of good moral character, as determined by the commissioner;<br/>
<a id="pl.4.25"></a><var>4.25</var>(2) submit to a background investigation, as determined by the commissioner; and<br/>
<a id="pl.4.26"></a><var>4.26</var>(3) certify to the commissioner that the person has never been the subject of an order <br/>
<a id="pl.4.27"></a><var>4.27</var>of certificate, registration or license suspension, revocation, or denial; cease and desist <br/>
<a id="pl.4.28"></a><var>4.28</var>order; injunctive order; or order barring involvement in an industry or profession issued <br/>
<a id="pl.4.29"></a><var>4.29</var>by this or another state or federal regulatory agency.<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subd. 3. <b>Designated controlling person requirements.</b> (a) <b>Designation.</b> Each <br/>
<a id="pl.4.31"></a><var>4.31</var>appraisal management company applying to the commissioner for a license in this state <br/>
<a id="pl.4.32"></a><var>4.32</var>shall designate a controlling person that will be the main contact for all communication <br/>
<a id="pl.4.33"></a><var>4.33</var>between the commissioner and the appraisal management company.<br/>
<a id="pl.4.34"></a><var>4.34</var>(b) <b>Requirements.</b> In order to serve as a designated controlling person of an <br/>
<a id="pl.4.35"></a><var>4.35</var>appraisal management company, a person must:<br/>
<a id="pl.5.1"></a><var>5.1</var>(1) certify to the commissioner that the person is not currently subject to any cease <br/>
<a id="pl.5.2"></a><var>5.2</var>and desist order or injunctive order that would preclude involvement with an appraisal <br/>
<a id="pl.5.3"></a><var>5.3</var>management company, and has never been the subject of an order suspending, revoking, <br/>
<a id="pl.5.4"></a><var>5.4</var>or denying a certification, registration, or license for real estate services, or a final order <br/>
<a id="pl.5.5"></a><var>5.5</var>barring involvement in any industry or profession issued by this or another state or federal <br/>
<a id="pl.5.6"></a><var>5.6</var>regulatory agency;<br/>
<a id="pl.5.7"></a><var>5.7</var>(2) be of good moral character, as determined by the commissioner; and<br/>
<a id="pl.5.8"></a><var>5.8</var>(3) submit to a background investigation, as determined by the commissioner.<br/>
<a id="pl.5.9"></a><var>5.9</var>    Subd. 4. <b>Application for license.</b> Application for an appraisal management <br/>
<a id="pl.5.10"></a><var>5.10</var>company license must be submitted on a form prescribed by the commissioner.<br/>
<a id="pl.5.11"></a><var>5.11</var>    Subd. 5. <b>Minimum information.</b> The application must, at a minimum, include <br/>
<a id="pl.5.12"></a><var>5.12</var>the following information:<br/>
<a id="pl.5.13"></a><var>5.13</var>(1) the name of the entity seeking registration;<br/>
<a id="pl.5.14"></a><var>5.14</var>(2) the business address or addresses of the entity seeking registration;<br/>
<a id="pl.5.15"></a><var>5.15</var>(3) telephone contact and e-mail information of the entity seeking registration;<br/>
<a id="pl.5.16"></a><var>5.16</var>(4) if the entity is not a corporation that is domiciled in this state, the name and <br/>
<a id="pl.5.17"></a><var>5.17</var>contact information for the company's agent for service of process in this state;<br/>
<a id="pl.5.18"></a><var>5.18</var>(5) the name, address, and contact information for an individual or corporation, <br/>
<a id="pl.5.19"></a><var>5.19</var>partnership, limited liability company, association, or other business entity that owns ten <br/>
<a id="pl.5.20"></a><var>5.20</var>percent or more of the appraisal management company;<br/>
<a id="pl.5.21"></a><var>5.21</var>(6) the name, address, and contact information for a controlling person or persons;<br/>
<a id="pl.5.22"></a><var>5.22</var>(7) a certification that the entity has a system and process in place to verify that a <br/>
<a id="pl.5.23"></a><var>5.23</var>person being added to the employment or appraiser panel of the appraisal management <br/>
<a id="pl.5.24"></a><var>5.24</var>company for appraisal services within this state holds an active appraisal license in this <br/>
<a id="pl.5.25"></a><var>5.25</var>state pursuant to chapter 82B if a license is required to perform appraisals;<br/>
<a id="pl.5.26"></a><var>5.26</var>(8) a certification that the entity has a system in place to review the work of all <br/>
<a id="pl.5.27"></a><var>5.27</var>employed and independent appraisers that are performing real estate appraisal services <br/>
<a id="pl.5.28"></a><var>5.28</var>for the appraisal management company on a periodic basis to verify that the real estate <br/>
<a id="pl.5.29"></a><var>5.29</var>appraisal assignments are being conducted in accordance with USPAP and chapter 82B;<br/>
<a id="pl.5.30"></a><var>5.30</var>(9) a certification that the entity maintains a detailed record of each service request <br/>
<a id="pl.5.31"></a><var>5.31</var>that it receives and the independent appraiser that performs the  real estate appraisal <br/>
<a id="pl.5.32"></a><var>5.32</var>services for the appraisal management company, pursuant to section 82C.13;<br/>
<a id="pl.5.33"></a><var>5.33</var>(10) a certification that the employees of the appraisal management company will be <br/>
<a id="pl.5.34"></a><var>5.34</var>appropriately trained and familiar with the appraisal process;<br/>
<a id="pl.5.35"></a><var>5.35</var>(11) a certification that the appraisal management company has a system and <br/>
<a id="pl.5.36"></a><var>5.36</var>process in place to verify that a person being added to the appraiser panel of the appraisal <br/>
<a id="pl.6.1"></a><var>6.1</var>management company holds a license in good standing in this state pursuant to chapter <br/>
<a id="pl.6.2"></a><var>6.2</var>82B; and<br/>
<a id="pl.6.3"></a><var>6.3</var>(12) an irrevocable Uniform Consent to Service of Process, pursuant to section <br/>
<a id="pl.6.4"></a><var>6.4</var>82C.07.<br/>
<a id="pl.6.5"></a><var>6.5</var>    Subd. 6. <b>Effective date of license.</b> Initial licenses issued under this chapter are <br/>
<a id="pl.6.6"></a><var>6.6</var>effective upon issuance and remain valid, subject to denial, suspension, or revocation <br/>
<a id="pl.6.7"></a><var>6.7</var>under this chapter, until the following August 31.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.8"></a><var>6.8</var>    Sec. 4. <b>[82C.04] TERM OF LICENSE.</b><br/>
<a id="pl.6.9"></a><var>6.9</var>Initial licenses issued under this chapter are valid for a period not to exceed one <br/>
<a id="pl.6.10"></a><var>6.10</var>year. Each initial license must expire on August 31 of the expiration year assigned by <br/>
<a id="pl.6.11"></a><var>6.11</var>the commissioner.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.12"></a><var>6.12</var>    Sec. 5. <b>[82C.05] LICENSE RENEWAL.</b><br/>
<a id="pl.6.13"></a><var>6.13</var>    Subdivision 1. <b>Term.</b> Licenses renewed under this chapter are valid for a period <br/>
<a id="pl.6.14"></a><var>6.14</var>of 12 months.<br/>
<a id="pl.6.15"></a><var>6.15</var>    Subd. 2. <b>Timely renewal.</b> (a) Application for timely renewal of a license is <br/>
<a id="pl.6.16"></a><var>6.16</var>considered timely filed if received by the commissioner before the date of the license <br/>
<a id="pl.6.17"></a><var>6.17</var>expiration.<br/>
<a id="pl.6.18"></a><var>6.18</var>(b) An application for renewal is considered properly filed if made upon a form <br/>
<a id="pl.6.19"></a><var>6.19</var>prescribed by the commissioner, accompanied by fees prescribed by this chapter, and <br/>
<a id="pl.6.20"></a><var>6.20</var>containing any information the commissioner requires.<br/>
<a id="pl.6.21"></a><var>6.21</var>(c) A licensee failing to make timely application for renewal of the license is <br/>
<a id="pl.6.22"></a><var>6.22</var>unlicensed until the renewal license has been issued by the commissioner and is received <br/>
<a id="pl.6.23"></a><var>6.23</var>by the licensee.<br/>
<a id="pl.6.24"></a><var>6.24</var>    Subd. 3. <b>Contents of renewal application.</b> Application for the renewal of an <br/>
<a id="pl.6.25"></a><var>6.25</var>existing license must contain the information specified in section 82C.03. However, only <br/>
<a id="pl.6.26"></a><var>6.26</var>the requested information having changed from the most recent prior application need <br/>
<a id="pl.6.27"></a><var>6.27</var>be submitted.<br/>
<a id="pl.6.28"></a><var>6.28</var>    Subd. 4. <b>Cancellation.</b> A licensee ceasing an activity or activities regulated by this <br/>
<a id="pl.6.29"></a><var>6.29</var>chapter and desiring to no longer be licensed shall so inform the commissioner in writing <br/>
<a id="pl.6.30"></a><var>6.30</var>and, at the same time, surrender the license and all other symbols or indicia of licensure.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.6.31"></a><var>6.31</var>    Sec. 6. <b>[82C.06] EXEMPTIONS.</b><br/>
<a id="pl.6.32"></a><var>6.32</var>This chapter does not apply to:<br/>
<a id="pl.7.1"></a><var>7.1</var>(1) a person that exclusively employs appraisers on an employer and employee <br/>
<a id="pl.7.2"></a><var>7.2</var>basis for the performance of appraisals, and:<br/>
<a id="pl.7.3"></a><var>7.3</var>(i) the employer is responsible for ensuring that the appraisals are performed by <br/>
<a id="pl.7.4"></a><var>7.4</var>employees in accordance with USPAP; and<br/>
<a id="pl.7.5"></a><var>7.5</var>(ii) the employer accepts all liability associated with the performance of the <br/>
<a id="pl.7.6"></a><var>7.6</var>appraisal by the employee;<br/>
<a id="pl.7.7"></a><var>7.7</var>(2) a department or unit within a financial institution that is subject to direct <br/>
<a id="pl.7.8"></a><var>7.8</var>regulation by an agency of the United States government, or to regulation by an agency of <br/>
<a id="pl.7.9"></a><var>7.9</var>this state, that receives a request for the performance of an appraisal from one employee of <br/>
<a id="pl.7.10"></a><var>7.10</var>the financial institution, and another employee of the same financial institution assigns the <br/>
<a id="pl.7.11"></a><var>7.11</var>request for the appraisal to an appraiser that is an independent contractor to the institution, <br/>
<a id="pl.7.12"></a><var>7.12</var>except that an appraisal management company that is a wholly owned subsidiary of <br/>
<a id="pl.7.13"></a><var>7.13</var>a financial institution shall not be considered a department or unit within a financial <br/>
<a id="pl.7.14"></a><var>7.14</var>institution to which the provisions of this chapter do not apply;<br/>
<a id="pl.7.15"></a><var>7.15</var>(3) a person that enters into an agreement, whether written or otherwise, with an <br/>
<a id="pl.7.16"></a><var>7.16</var>appraiser for the performance of an appraisal, and upon the completion of the appraisal, <br/>
<a id="pl.7.17"></a><var>7.17</var>the report of the appraiser performing the appraisal is signed by both the appraiser who <br/>
<a id="pl.7.18"></a><var>7.18</var>completed the appraisal and the appraiser who requested the completion of the appraisal, <br/>
<a id="pl.7.19"></a><var>7.19</var>except that an appraisal management company may not avoid the requirements of this <br/>
<a id="pl.7.20"></a><var>7.20</var>chapter by requiring that an employee of the appraisal management company that is an <br/>
<a id="pl.7.21"></a><var>7.21</var>appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal <br/>
<a id="pl.7.22"></a><var>7.22</var>panel of the appraisal management company; or<br/>
<a id="pl.7.23"></a><var>7.23</var>(4) any governmental agency performing appraisals on behalf of that level of <br/>
<a id="pl.7.24"></a><var>7.24</var>government or any agency performing ad valorem tax appraisals for county assessors.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.25"></a><var>7.25</var>    Sec. 7. <b>[82C.07] CONSENT TO SERVICE OF PROCESS.</b><br/>
<a id="pl.7.26"></a><var>7.26</var>Each entity applying for a license as an appraisal management company in this state <br/>
<a id="pl.7.27"></a><var>7.27</var>shall complete an irrevocable Uniform Consent to Service of Process as prescribed by <br/>
<a id="pl.7.28"></a><var>7.28</var>the commissioner.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.29"></a><var>7.29</var>    Sec. 8. <b>[82C.08] LICENSING FEES.</b><br/>
<a id="pl.7.30"></a><var>7.30</var>    Subdivision 1. <b>Establishment and retention.</b> The fees shall be retained by the <br/>
<a id="pl.7.31"></a><var>7.31</var>commissioner for the sole purpose of administering this licensing and regulation program.<br/>
<a id="pl.7.32"></a><var>7.32</var>    Subd. 2. <b>Amounts.</b> (a) Each application for initial licensure shall be accompanied <br/>
<a id="pl.7.33"></a><var>7.33</var>by a fee of $5,000.<br/>
<a id="pl.8.1"></a><var>8.1</var>(b) Each application for renewal of the license must be received prior to the two-year <br/>
<a id="pl.8.2"></a><var>8.2</var>expiration period with the renewal fee of $2,500.<br/>
<a id="pl.8.3"></a><var>8.3</var>    Subd. 3. <b>Forfeiture.</b> All fees are nonrefundable except that an overpayment of a fee <br/>
<a id="pl.8.4"></a><var>8.4</var>must be refunded upon proper application.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.5"></a><var>8.5</var>    Sec. 9. <b>[82C.09] INVESTIGATIONS AND SUBPOENAS.</b><br/>
<a id="pl.8.6"></a><var>8.6</var>The commissioner has under this chapter the same powers with respect to chapter <br/>
<a id="pl.8.7"></a><var>8.7</var>45.027, including the authority to impose a civil penalty not to exceed $10,000 per <br/>
<a id="pl.8.8"></a><var>8.8</var>violation.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.8.9"></a><var>8.9</var>    Sec. 10. <b>[82C.10] EMPLOYEE REQUIREMENTS.</b><br/>
<a id="pl.8.10"></a><var>8.10</var>An employee of the appraisal management company that has the responsibility to <br/>
<a id="pl.8.11"></a><var>8.11</var>review the work of employed and independent appraisers where the subject properties are <br/>
<a id="pl.8.12"></a><var>8.12</var>located within this state, which include the reviewer's opinion of value or concurrence <br/>
<a id="pl.8.13"></a><var>8.13</var>with the original appraiser's value, must be licensed according to chapter 82B and perform <br/>
<a id="pl.8.14"></a><var>8.14</var>the review assignments in compliance with USPAP and chapter 82B. This requirement <br/>
<a id="pl.8.15"></a><var>8.15</var>does not apply to employees who review appraisals for completeness and compliance in <br/>
<a id="pl.8.16"></a><var>8.16</var>connection with an appraisal management company's internal quality control processes, <br/>
<a id="pl.8.17"></a><var>8.17</var>but who do not perform appraisal reviews that are subject to Standard 3 of USPAP.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.8.18"></a><var>8.18</var>    Sec. 11. <b>[82C.11] LIMITATIONS.</b><br/>
<a id="pl.8.19"></a><var>8.19</var>An appraisal management company licensed in this state pursuant to this chapter <br/>
<a id="pl.8.20"></a><var>8.20</var>may enter into contracts or agreements for appraisal assignments in this state only with <br/>
<a id="pl.8.21"></a><var>8.21</var>an employee or independent appraiser holding an active Minnesota real estate appraiser <br/>
<a id="pl.8.22"></a><var>8.22</var>license pursuant to chapter 82B.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.8.23"></a><var>8.23</var>    Sec. 12. <b>[82C.12] ADHERENCE TO STANDARDS.</b><br/>
<a id="pl.8.24"></a><var>8.24</var>An appraisal management company must have a system in place to review the <br/>
<a id="pl.8.25"></a><var>8.25</var>work of all employed and independent appraisers that are performing real estate appraisal <br/>
<a id="pl.8.26"></a><var>8.26</var>assignments for the appraisal management company on a periodic basis to verify that <br/>
<a id="pl.8.27"></a><var>8.27</var>the real estate appraisal services are being conducted in accordance with USPAP and <br/>
<a id="pl.8.28"></a><var>8.28</var>chapter 82B. An appraisal management company is required to make referrals directly to <br/>
<a id="pl.8.29"></a><var>8.29</var>state appraiser regulatory authorities when a state licensed or certified appraiser violates <br/>
<a id="pl.8.30"></a><var>8.30</var>USPAP, applicable state law, or engages in other unethical or unprofessional conduct.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.8.31"></a><var>8.31</var>    Sec. 13. <b>[82C.13] RECORD KEEPING.</b><br/>
<a id="pl.9.1"></a><var>9.1</var>An appraisal management company must maintain a detailed record of each service <br/>
<a id="pl.9.2"></a><var>9.2</var>request that it receives and the employee appraiser or independent appraiser that performs <br/>
<a id="pl.9.3"></a><var>9.3</var>the appraisal assignment for the appraisal management company.<br/>
<a id="pl.9.4"></a><var>9.4</var>Records must be kept for a period of at least five years after the appraisal assignment <br/>
<a id="pl.9.5"></a><var>9.5</var>request is sent to the independent appraiser or completion of the appraisal report, <br/>
<a id="pl.9.6"></a><var>9.6</var>whichever period expires later.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.9.7"></a><var>9.7</var>    Sec. 14. <b>[82C.14] APPRAISER INDEPENDENCE; PROHIBITIONS.</b><br/>
<a id="pl.9.8"></a><var>9.8</var>(a) It is unlawful for any employee, director, officer, or agent of an appraisal <br/>
<a id="pl.9.9"></a><var>9.9</var>management company licensed in this state pursuant to this chapter to influence or attempt <br/>
<a id="pl.9.10"></a><var>9.10</var>to influence the development, reporting, or review of an appraisal through coercion, <br/>
<a id="pl.9.11"></a><var>9.11</var>extortion, collusion, compensation, inducement, intimidation, or bribery, including but <br/>
<a id="pl.9.12"></a><var>9.12</var>not limited to:<br/>
<a id="pl.9.13"></a><var>9.13</var>(1) withholding or threatening to withhold timely payment for an appraisal;<br/>
<a id="pl.9.14"></a><var>9.14</var>(2) withholding or threatening to withhold future business or assignments for an <br/>
<a id="pl.9.15"></a><var>9.15</var>employed or independent appraiser, or demoting or terminating or threatening to demote <br/>
<a id="pl.9.16"></a><var>9.16</var>or terminate an employed or independent appraiser;<br/>
<a id="pl.9.17"></a><var>9.17</var>(3) expressly or impliedly promising future business, assignments, promotions, or <br/>
<a id="pl.9.18"></a><var>9.18</var>increased compensation for an employed or independent appraiser;<br/>
<a id="pl.9.19"></a><var>9.19</var>(4) conditioning the request for an appraisal assignment on the payment of an <br/>
<a id="pl.9.20"></a><var>9.20</var>appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, <br/>
<a id="pl.9.21"></a><var>9.21</var>or on a preliminary estimate or opinion requested from an employed or independent <br/>
<a id="pl.9.22"></a><var>9.22</var>appraiser;<br/>
<a id="pl.9.23"></a><var>9.23</var>(5) requesting that an employed or independent appraiser provide an estimated, <br/>
<a id="pl.9.24"></a><var>9.24</var>predetermined, or desired valuation in an appraisal report, or provide estimated values or <br/>
<a id="pl.9.25"></a><var>9.25</var>comparable sales at any time prior to the completion of an appraisal assignment;<br/>
<a id="pl.9.26"></a><var>9.26</var>(6) providing to an employed or independent appraiser an anticipated, estimated, <br/>
<a id="pl.9.27"></a><var>9.27</var>encouraged, or desired value for a subject property or a proposed or target amount to be <br/>
<a id="pl.9.28"></a><var>9.28</var>loaned to the borrower, except that a copy of the sales contract for purchase transactions <br/>
<a id="pl.9.29"></a><var>9.29</var>may be provided;<br/>
<a id="pl.9.30"></a><var>9.30</var>(7) providing to an employed or independent appraiser, or any entity or person <br/>
<a id="pl.9.31"></a><var>9.31</var>related to the appraiser, stock, or other financial or nonfinancial benefits;<br/>
<a id="pl.9.32"></a><var>9.32</var>(8) allowing the removal of an employed or independent appraiser from a list of <br/>
<a id="pl.9.33"></a><var>9.33</var>qualified appraisers used by any entity, without prior written notice to the appraiser, which <br/>
<a id="pl.9.34"></a><var>9.34</var>notice must include documented evidence of the appraiser's violation of USPAP, chapter <br/>
<a id="pl.9.35"></a><var>9.35</var>82B, substandard performance, or otherwise improper or unprofessional behavior;<br/>
<a id="pl.10.1"></a><var>10.1</var>(9) request or require any employed or independent appraiser to provide the <br/>
<a id="pl.10.2"></a><var>10.2</var>appraisal management company or any of its employees, or any of its clients, with the <br/>
<a id="pl.10.3"></a><var>10.3</var>appraiser's digital signature;<br/>
<a id="pl.10.4"></a><var>10.4</var>(10) alter, amend, or change an appraisal report submitted by an appraiser, to include <br/>
<a id="pl.10.5"></a><var>10.5</var>removing or applying a signature, adding or deleting information from the appraisal report;<br/>
<a id="pl.10.6"></a><var>10.6</var>(11) require the appraiser to collect the fee from a borrower, homeowner, or other <br/>
<a id="pl.10.7"></a><var>10.7</var>person;<br/>
<a id="pl.10.8"></a><var>10.8</var>(12) require an appraiser to sign any indemnification agreement that would require <br/>
<a id="pl.10.9"></a><var>10.9</var>the appraiser to defend and hold harmless the appraisal management company or any of its <br/>
<a id="pl.10.10"></a><var>10.10</var>agents, or employees for any liability, damage, losses, or claims arising out of the services <br/>
<a id="pl.10.11"></a><var>10.11</var>performed by the appraisal management company or its agents, employees, or independent <br/>
<a id="pl.10.12"></a><var>10.12</var>contractors and not the services performed by the appraiser;<br/>
<a id="pl.10.13"></a><var>10.13</var>(13) use an appraiser directly selected or referred by any member of a loan <br/>
<a id="pl.10.14"></a><var>10.14</var>production staff for an individual assignment; or<br/>
<a id="pl.10.15"></a><var>10.15</var>(14) any other act or practice that impairs or attempts to impair an appraiser's <br/>
<a id="pl.10.16"></a><var>10.16</var>independence, objectivity, or impartiality.<br/>
<a id="pl.10.17"></a><var>10.17</var>(b) Nothing in paragraph (a) prohibits the appraisal management company from <br/>
<a id="pl.10.18"></a><var>10.18</var>requesting that an independent appraiser:<br/>
<a id="pl.10.19"></a><var>10.19</var>(1) consider additional appropriate property information;<br/>
<a id="pl.10.20"></a><var>10.20</var>(2) provide further detail, substantiation, or explanation for the appraiser's value <br/>
<a id="pl.10.21"></a><var>10.21</var>conclusion; or<br/>
<a id="pl.10.22"></a><var>10.22</var>(3) correct objective factual errors in an appraisal report.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.10.23"></a><var>10.23</var>    Sec. 15. <b>[82C.15] ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL </b><br/>
<a id="pl.10.24"></a><var>10.24</var><b>MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER.</b><br/>
<a id="pl.10.25"></a><var>10.25</var>Except within the first 30 days after an independent appraiser is first added to the <br/>
<a id="pl.10.26"></a><var>10.26</var>appraiser panel of an appraisal management company, an appraisal management company <br/>
<a id="pl.10.27"></a><var>10.27</var>may not remove an appraiser from its appraiser panel, or otherwise refuse to assign <br/>
<a id="pl.10.28"></a><var>10.28</var>requests for real estate appraisal services to an independent appraiser without:<br/>
<a id="pl.10.29"></a><var>10.29</var>(1) notifying the appraiser in writing of the reasons why the appraiser is being <br/>
<a id="pl.10.30"></a><var>10.30</var>removed from the appraiser panel or is not receiving appraisal requests from the appraisal <br/>
<a id="pl.10.31"></a><var>10.31</var>management company;<br/>
<a id="pl.10.32"></a><var>10.32</var>(2) if the appraiser is being removed from the panel for illegal conduct, having <br/>
<a id="pl.10.33"></a><var>10.33</var>determined that the appraiser has violated USPAP, or chapter 82B, taking into account the <br/>
<a id="pl.10.34"></a><var>10.34</var>nature of the alleged conduct or violation; and<br/>
<a id="pl.11.1"></a><var>11.1</var>(3) providing an opportunity for the appraiser to respond and appeal the notification <br/>
<a id="pl.11.2"></a><var>11.2</var>of the appraisal management company.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.11.3"></a><var>11.3</var>    Sec. 16. <b>[82C.16] DENIAL, SUSPENSION, REVOCATION OF LICENSES.</b><br/>
<a id="pl.11.4"></a><var>11.4</var>    Subdivision 1. <b>Powers of commissioner.</b> The commissioner may by order take any <br/>
<a id="pl.11.5"></a><var>11.5</var>or all of the following actions:<br/>
<a id="pl.11.6"></a><var>11.6</var>(1) bar a person from serving as an officer, director, partner, controlling person, <br/>
<a id="pl.11.7"></a><var>11.7</var>or any similar role at an appraisal management company, if such person has ever been <br/>
<a id="pl.11.8"></a><var>11.8</var>the subject of a final order suspending, revoking or denying a certification, registration <br/>
<a id="pl.11.9"></a><var>11.9</var>or license as a realtor, broker, or appraiser, or a final order barring involvement in any <br/>
<a id="pl.11.10"></a><var>11.10</var>industry or profession issued by this or another state or federal regulatory agency;<br/>
<a id="pl.11.11"></a><var>11.11</var>(2) deny, suspend, or revoke an appraisal management company license;<br/>
<a id="pl.11.12"></a><var>11.12</var>(3) censure an appraisal management company license; and<br/>
<a id="pl.11.13"></a><var>11.13</var>(4) impose a civil penalty as provided for in chapter 45.027.<br/>
<a id="pl.11.14"></a><var>11.14</var>(b) In order to take the action in paragraph (a), the commissioner must find:<br/>
<a id="pl.11.15"></a><var>11.15</var>(1) that the order is in the public interest; and<br/>
<a id="pl.11.16"></a><var>11.16</var>(2) that an officer, director, partner, employee, agent, controlling person or persons, <br/>
<a id="pl.11.17"></a><var>11.17</var>or any person occupying a similar status or performing similar functions, has:<br/>
<a id="pl.11.18"></a><var>11.18</var>(i) violated any provision of this chapter;<br/>
<a id="pl.11.19"></a><var>11.19</var>(ii) filed an application for a license that is incomplete in any material respect or <br/>
<a id="pl.11.20"></a><var>11.20</var>contains a statement that, in light of the circumstances under which it is made, is false or <br/>
<a id="pl.11.21"></a><var>11.21</var>misleading with respect to a material fact;<br/>
<a id="pl.11.22"></a><var>11.22</var>(iii) failed to maintain compliance with the affirmations made under section 80C.03, <br/>
<a id="pl.11.23"></a><var>11.23</var>subdivision 5;<br/>
<a id="pl.11.24"></a><var>11.24</var>(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, <br/>
<a id="pl.11.25"></a><var>11.25</var>or dishonest act or practice, whether or not the act or practice involves the appraisal <br/>
<a id="pl.11.26"></a><var>11.26</var>management company;<br/>
<a id="pl.11.27"></a><var>11.27</var>(v) engaged in an act or practice, whether or not the act or practice involves the <br/>
<a id="pl.11.28"></a><var>11.28</var>business of appraisal management, appraisal assignments, or real estate mortgage related <br/>
<a id="pl.11.29"></a><var>11.29</var>practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;<br/>
<a id="pl.11.30"></a><var>11.30</var>(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, <br/>
<a id="pl.11.31"></a><var>11.31</var>or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral <br/>
<a id="pl.11.32"></a><var>11.32</var>turpitude;<br/>
<a id="pl.11.33"></a><var>11.33</var>(vii) paid a civil penalty or been the subject of disciplinary action by the <br/>
<a id="pl.11.34"></a><var>11.34</var>commissioner, or an order of suspension or revocation, cease and desist order, or <br/>
<a id="pl.11.35"></a><var>11.35</var>injunction order, or an order barring involvement in an industry or profession issued by <br/>
<a id="pl.12.1"></a><var>12.1</var>this or any other state or federal regulatory agency or government-sponsored enterprise, <br/>
<a id="pl.12.2"></a><var>12.2</var>or by the secretary of Housing and Urban Development;<br/>
<a id="pl.12.3"></a><var>12.3</var>(viii) been found by a court of competent jurisdiction to have engaged in conduct <br/>
<a id="pl.12.4"></a><var>12.4</var>evidencing gross negligence, fraud, misrepresentation, or deceit;<br/>
<a id="pl.12.5"></a><var>12.5</var>(ix) refused to cooperate with an investigation or examination by the commissioner;<br/>
<a id="pl.12.6"></a><var>12.6</var>(x) failed to pay any fee or assessment imposed by the commissioner; or<br/>
<a id="pl.12.7"></a><var>12.7</var>(xi) failed to comply with state and federal tax obligations.<br/>
<a id="pl.12.8"></a><var>12.8</var>    Subd. 2. <b>Orders of the commissioner.</b> To begin a proceeding under this section, <br/>
<a id="pl.12.9"></a><var>12.9</var>the commissioner shall issue an order requiring the subject of the proceeding to show <br/>
<a id="pl.12.10"></a><var>12.10</var>cause why action should not be taken against the licensee according to this section. The <br/>
<a id="pl.12.11"></a><var>12.11</var>order must be calculated to give reasonable notice of the time and place for the hearing <br/>
<a id="pl.12.12"></a><var>12.12</var>and must state the reasons for entry of the order. The commissioner may by order <br/>
<a id="pl.12.13"></a><var>12.13</var>summarily suspend a license pending a final determination of an order to show cause. If a <br/>
<a id="pl.12.14"></a><var>12.14</var>license is summarily suspended, pending final determination of an order to show cause, a <br/>
<a id="pl.12.15"></a><var>12.15</var>hearing on the merits must be held within 30 days of the issuance of the order of summary <br/>
<a id="pl.12.16"></a><var>12.16</var>suspension. All hearings must be conducted under chapter 14. After the hearing, the <br/>
<a id="pl.12.17"></a><var>12.17</var>commissioner shall enter an order disposing of the matter as the facts require. If the <br/>
<a id="pl.12.18"></a><var>12.18</var>subject of the order fails to appear at a hearing after having been duly notified of it, the <br/>
<a id="pl.12.19"></a><var>12.19</var>subject is considered in default, and the proceeding may be determined against the subject <br/>
<a id="pl.12.20"></a><var>12.20</var>of the order upon consideration of the order to show cause, the allegations of which may <br/>
<a id="pl.12.21"></a><var>12.21</var>be considered to be true.<br/>
<a id="pl.12.22"></a><var>12.22</var>    Subd. 3. <b>Actions against lapsed license.</b> If a license lapses, is surrendered, <br/>
<a id="pl.12.23"></a><var>12.23</var>withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute <br/>
<a id="pl.12.24"></a><var>12.24</var>a proceeding under this subdivision within two years after the license was last effective <br/>
<a id="pl.12.25"></a><var>12.25</var>and enter a revocation or suspension order as of the last date  which the license was in <br/>
<a id="pl.12.26"></a><var>12.26</var>effect, and may impose a civil penalty as provided for in this section or section 45.027.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.12.27"></a><var>12.27</var>    Sec. 17. <b>APPROPRIATION.</b><br/>
<a id="pl.12.28"></a><var>12.28</var>    $223,000 in fiscal year 2011 is appropriated from the general fund to the <br/>
<a id="pl.12.29"></a><var>12.29</var>commissioner of commerce for implementing this article. The base appropriation for this <br/>
<a id="pl.12.30"></a><var>12.30</var>program is $119,000 in fiscal year 2012 and $123,000 in fiscal year 2013.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.12.33"></a><var>12.33</var>    Section 1. Minnesota Statutes 2009 Supplement, section 82B.05, subdivision 1, is <br/>
<a id="pl.12.34"></a><var>12.34</var>amended to read:<br/>
<a id="pl.13.1"></a><var>13.1</var>    Subdivision 1. <b>Members.</b> The Real Estate Appraiser Advisory Board consists of <br/>
<a id="pl.13.2"></a><var>13.2</var>15 nine members appointed by the commissioner of commerce. Three of the members <br/>
<a id="pl.13.3"></a><var>13.3</var>must be public members, four must be consumers of appraisal services, and eight three <br/>
<a id="pl.13.4"></a><var>13.4</var>must be real estate appraisers of whom not less than two members must be trainee real <br/>
<a id="pl.13.5"></a><var>13.5</var>property appraisers, licensed real property appraisers, or certified residential real property <br/>
<a id="pl.13.6"></a><var>13.6</var>appraisers, not less than two members and three must be certified general real property <br/>
<a id="pl.13.7"></a><var>13.7</var>appraisers, and not less than one member of those members must be certified by the <br/>
<a id="pl.13.8"></a><var>13.8</var>Appraisal Qualification Board of the Appraisal Foundation to teach the Uniform Standards <br/>
<a id="pl.13.9"></a><var>13.9</var>of Professional Appraisal Practice. Each of the three categories of members must include <br/>
<a id="pl.13.10"></a><var>13.10</var>at least one member who lives or works outside of the seven-county metropolitan area. <br/>
<a id="pl.13.11"></a><var>13.11</var>The board is governed by section 
         <statute_ref>15.0575</statute_ref>.<br/>
<a id="pl.13.12"></a><var>13.12</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.13.13"></a><var>13.13</var>    Sec. 2. Minnesota Statutes 2008, section 82B.05, subdivision 5, is amended to read:<br/>
<a id="pl.13.14"></a><var>13.14</var>    Subd. 5. <b>Conduct of meetings.</b> Places of regular board meetings must be decided <br/>
<a id="pl.13.15"></a><var>13.15</var>by the vote of members. Written notice must be given to each member of the time and <br/>
<a id="pl.13.16"></a><var>13.16</var>place of each meeting of the board at least ten days before the scheduled date of regular <br/>
<a id="pl.13.17"></a><var>13.17</var>board meetings. The board shall establish procedures for emergency board meetings and <br/>
<a id="pl.13.18"></a><var>13.18</var>other operational procedures, subject to the approval of the commissioner.<br/>
<a id="pl.13.19"></a><var>13.19</var>The members of the board shall elect a chair from among the members to preside <br/>
<a id="pl.13.20"></a><var>13.20</var>at board meetings.<br/>
<a id="pl.13.21"></a><var>13.21</var>A quorum of the board is eight five members.<br/>
<a id="pl.13.22"></a><var>13.22</var>The board shall meet at least once every six months as determined by a majority vote <br/>
<a id="pl.13.23"></a><var>13.23</var>of the members or a call of the commissioner. The chair of the board may call a meeting at <br/>
<a id="pl.13.24"></a><var>13.24</var>any other time, subject to the notice requirements of this section.<br/>
<a id="pl.13.25"></a><var>13.25</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.13.26"></a><var>13.26</var>    Sec. 3. Minnesota Statutes 2008, section 82B.05, is amended by adding a subdivision <br/>
<a id="pl.13.27"></a><var>13.27</var>to read:<br/>
<a id="pl.13.28"></a><var>13.28</var>    Subd. 7. <b>Enforcement reports.</b> The commissioner shall, on a regular basis, provide <br/>
<a id="pl.13.29"></a><var>13.29</var>the board with the commissioner's enforcement reports.<br/>
<a id="pl.13.30"></a><var>13.30</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.14.1"></a><var>14.1</var>    Sec. 4. Minnesota Statutes 2008, section 82B.06, is amended to read:<br/>
<a id="pl.14.2"></a><var>14.2</var><b>82B.06 POWERS OF THE BOARD.</b><br/>
<a id="pl.14.3"></a><var>14.3</var>The board shall make recommendations to the commissioner as the commissioner <br/>
<a id="pl.14.4"></a><var>14.4</var>requests or at the board's own initiative on:<br/>
<a id="pl.14.5"></a><var>14.5</var>(1) rules with respect to each category of licensed real estate appraiser, the type of <br/>
<a id="pl.14.6"></a><var>14.6</var>educational experience, appraisal experience, and equivalent experience that will meet <br/>
<a id="pl.14.7"></a><var>14.7</var>the requirements of this chapter;<br/>
<a id="pl.14.8"></a><var>14.8</var>(2) examination specifications for each category of licensed real estate appraiser, <br/>
<a id="pl.14.9"></a><var>14.9</var>to assist in providing or obtaining appropriate examination questions and answers, and <br/>
<a id="pl.14.10"></a><var>14.10</var>procedures for grading examinations;<br/>
<a id="pl.14.11"></a><var>14.11</var>(3) rules with respect to each category of licensed real estate appraiser, the <br/>
<a id="pl.14.12"></a><var>14.12</var>continuing education requirements for the renewal of licensing that will meet the <br/>
<a id="pl.14.13"></a><var>14.13</var>requirements provided in this chapter;<br/>
<a id="pl.14.14"></a><var>14.14</var>(4) periodic review of the standards for the development and communication of <br/>
<a id="pl.14.15"></a><var>14.15</var>real estate appraisals provided in this chapter and rules explaining and interpreting the <br/>
<a id="pl.14.16"></a><var>14.16</var>standards; and<br/>
<a id="pl.14.17"></a><var>14.17</var>(5) other matters necessary in carrying out the provisions of this chapter.<br/>
<a id="pl.14.18"></a><var>14.18</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010.<br/>