1.1A bill for an act1.2relating to commerce; providing for the licensing and regulation of appraisal 1.3management companies; regulating the real estate appraiser advisory board; 1.4appropriating money;amending Minnesota Statutes 2008, sections 82B.05, 1.5subdivision 5, by adding a subdivision; 82B.06; Minnesota Statutes 2009 1.6Supplement, section 82B.05, subdivision 1; proposing coding for new law as 1.7Minnesota Statutes, chapter 82C.1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.9ARTICLE 11.10REAL ESTATE APPRAISAL MANAGEMENT COMPANIES1.11    Section 1. [82C.01] TITLE.1.12This chapter shall be known as the Minnesota Appraisal Management Company 1.13Licensing and Regulation Act.1.14    Sec. 2. [82C.02] DEFINITIONS.1.15    Subdivision 1.Terms.As used in this chapter, the terms in this section have the 1.16meanings given them.1.17    Subd. 2.Appraisal.In conformance with the Uniform Standards of Professional 1.18Appraisal Practice (USPAP), "appraisal" is defined as: (noun) the act or process of 1.19developing an opinion of value; an opinion of value; (adjective) of or pertaining to 1.20appraising and related functions such as appraisal practice or appraisal services. For 1.21purposes of this chapter, all appraisals or assignments that are referred to involve one to 1.22four unit single-family properties.1.23    Subd. 3.Appraisal assignment."Appraisal assignment" means an engagement for 1.24which an appraiser is employed or retained to act, as a disinterested third party in giving 2.1an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility 2.2of named interests in, or aspects of, identified real estate.2.3    Subd. 4.Appraisal management company."Appraisal management company" 2.4means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business 2.5entity that directly or indirectly performs the following appraisal management services:2.6(1) administers networks of independent contractors and/or employee appraisers to 2.7perform residential real estate appraisal assignments for clients;2.8(2) receives requests for residential real estate appraisal services from clients and, for 2.9a fee paid by the client, enters into an agreement with one or more independent appraisers 2.10to perform the real estate appraisal services contained in the request; or2.11(3) serves as a third-party broker of appraisal management services between clients 2.12and appraisers.2.13    Subd. 5.Appraisal management services."Appraisal management services" 2.14means the process of directly or indirectly performing any of the following functions on 2.15behalf of a lender, financial institution, client, or any other person to:2.16(1) administer an appraiser panel;2.17(2) recruit, qualify, verify licensing or certification, and negotiate fees and service 2.18level expectations with persons who are part of an appraiser panel;2.19(3) receive an order for an appraisal from one person, and deliver the order for the 2.20appraisal to an appraiser that is part of an appraiser panel for completion;2.21(4) track and determine the status of orders for appraisals;2.22(5) conduct quality control of a completed appraisal prior to the delivery of the 2.23appraisal to the person that ordered the appraisal; or2.24(6) provide a completed appraisal performed by an appraiser to one or more clients.2.25    Subd. 6.Appraiser."Appraiser" means a person who is expected to perform 2.26valuation services competently and in a manner that is independent, impartial, and 2.27objective, and who is licensed under chapter 82B.2.28    Subd. 7.Appraiser panel."Appraiser panel" means a network of licensed or 2.29certified appraisers who are independent contractors to the appraisal management 2.30company that have:2.31(1) responded to an invitation, request, or solicitation from an appraisal management 2.32company, in any form, to perform appraisals for persons that have ordered appraisals 2.33through the appraisal management company, or to perform appraisals for the appraisal 2.34management company directly, on a periodic basis, as requested and assigned by the 2.35appraisal management company; and3.1(2) been selected and approved by an appraisal management company to perform 3.2appraisals for any client of the appraisal management company that has ordered an 3.3appraisal through the appraisal management company, or to perform appraisals for the 3.4appraisal management company directly, on a periodic basis, as assigned by the appraisal 3.5management company.3.6    Subd. 8.Appraisal review."Appraisal review" means the act of developing 3.7and communicating an opinion about the quality of another appraiser's work that was 3.8performed as part of an appraisal assignment, except that an examination of an appraisal 3.9for grammatical, typographical, or other similar errors that do not make a substantive 3.10valuation change shall not be an appraisal review.3.11    Subd. 9.Client."Client" means any person or entity that contracts with, or 3.12otherwise enters into an agreement with, an appraisal management company for the 3.13performance of real estate appraisal services or appraisal management services. For 3.14purposes of this chapter, the appraisal management company is the party engaging the 3.15independent appraiser and can be the appraiser's client. However, this does not preclude 3.16an appraisal management company from acting as a duly authorized agent for a lender.3.17    Subd. 10.Commissioner."Commissioner" means the commissioner of commerce.3.18    Subd. 11.Controlling person."Controlling person" means:3.19(1) any owner, officer, or director of an appraisal management company seeking to 3.20offer appraisal management services in this state;3.21(2) an individual employed, appointed, or authorized by an appraisal management 3.22company that has the authority to enter into a contractual relationship with other persons 3.23for the performance of appraisal management services and has the authority to enter into 3.24agreements with appraisers for the performance of appraisals;3.25(3) an individual who possesses, directly or indirectly, the power to direct or cause 3.26the direction of the management or policies of an appraisal management company; or3.27(4) an individual who enters into:3.28(i) contractual relationships with clients for the performance of appraisal 3.29management services; and3.30(ii) agreements with employed and independent appraisers for the performance 3.31of real estate appraisal services.3.32    Subd. 12.Employee."Employee" means an individual who is treated as an 3.33employee for purposes of compliance with federal income tax laws.3.34    Subd. 13.Person."Person" means a natural person, firm, partnership, limited 3.35liability partnership, corporation, association, limited liability company, or other form of 3.36business organization and the officers, directors, employees, or agents of that person.4.1    Subd. 14.USPAP."USPAP" means the Uniform Standards of Professional 4.2Appraisal Practice as established by the Appraisal Foundation. State and federal regulatory 4.3authorities enforce the content of the current or applicable edition of USPAP.4.4    Sec. 3. [82C.03] LICENSING.4.5    Subdivision 1.Requirement.It is unlawful for a person, corporation, partnership, 4.6sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly 4.7engage or attempt to engage in business as an appraisal management company, to directly 4.8or indirectly engage or attempt to perform appraisal management services, or to advertise 4.9or hold itself out as engaging in or conducting business as an appraisal management 4.10company without first obtaining a license issued by the commissioner under the provisions 4.11of this chapter.4.12    Subd. 2.Owner requirements.(a) An appraisal management company applying to 4.13the commissioner for a license in this state may not be more than ten percent owned by 4.14any person that is currently subject to any cease and desist order or injunctive order that 4.15would preclude involvement with an appraisal management company, or that has ever:4.16(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification, 4.17registration or license, or an appraisal management company license;4.18(2) been the subject of a final order revoking or denying an appraiser certification, 4.19registration or license, or an appraisal management company license;  or4.20(3) a final order barring involvement in any industry or profession issued by this or 4.21another state or federal regulatory agency.4.22(b) A person that owns more than ten percent of an appraisal management company 4.23in this state shall:4.24(1) be of good moral character, as determined by the commissioner;4.25(2) submit to a background investigation, as determined by the commissioner; and4.26(3) certify to the commissioner that the person has never been the subject of an order 4.27of certificate, registration or license suspension, revocation, or denial; cease and desist 4.28order; injunctive order; or order barring involvement in an industry or profession issued 4.29by this or another state or federal regulatory agency.4.30    Subd. 3.Designated controlling person requirements.(a) Designation. Each 4.31appraisal management company applying to the commissioner for a license in this state 4.32shall designate a controlling person that will be the main contact for all communication 4.33between the commissioner and the appraisal management company.4.34(b) Requirements. In order to serve as a designated controlling person of an 4.35appraisal management company, a person must:5.1(1) certify to the commissioner that the person is not currently subject to any cease 5.2and desist order or injunctive order that would preclude involvement with an appraisal 5.3management company, and has never been the subject of an order suspending, revoking, 5.4or denying a certification, registration, or license for real estate services, or a final order 5.5barring involvement in any industry or profession issued by this or another state or federal 5.6regulatory agency;5.7(2) be of good moral character, as determined by the commissioner; and5.8(3) submit to a background investigation, as determined by the commissioner.5.9    Subd. 4.Application for license.Application for an appraisal management 5.10company license must be submitted on a form prescribed by the commissioner.5.11    Subd. 5.Minimum information.The application must, at a minimum, include 5.12the following information:5.13(1) the name of the entity seeking registration;5.14(2) the business address or addresses of the entity seeking registration;5.15(3) telephone contact and e-mail information of the entity seeking registration;5.16(4) if the entity is not a corporation that is domiciled in this state, the name and 5.17contact information for the company's agent for service of process in this state;5.18(5) the name, address, and contact information for an individual or corporation, 5.19partnership, limited liability company, association, or other business entity that owns ten 5.20percent or more of the appraisal management company;5.21(6) the name, address, and contact information for a controlling person or persons;5.22(7) a certification that the entity has a system and process in place to verify that a 5.23person being added to the employment or appraiser panel of the appraisal management 5.24company for appraisal services within this state holds an active appraisal license in this 5.25state pursuant to chapter 82B if a license is required to perform appraisals;5.26(8) a certification that the entity has a system in place to review the work of all 5.27employed and independent appraisers that are performing real estate appraisal services 5.28for the appraisal management company on a periodic basis to verify that the real estate 5.29appraisal assignments are being conducted in accordance with USPAP and chapter 82B;5.30(9) a certification that the entity maintains a detailed record of each service request 5.31that it receives and the independent appraiser that performs the  real estate appraisal 5.32services for the appraisal management company, pursuant to section 82C.13;5.33(10) a certification that the employees of the appraisal management company will be 5.34appropriately trained and familiar with the appraisal process;5.35(11) a certification that the appraisal management company has a system and 5.36process in place to verify that a person being added to the appraiser panel of the appraisal 6.1management company holds a license in good standing in this state pursuant to chapter 6.282B; and6.3(12) an irrevocable Uniform Consent to Service of Process, pursuant to section 6.482C.07.6.5    Subd. 6.Effective date of license.Initial licenses issued under this chapter are 6.6effective upon issuance and remain valid, subject to denial, suspension, or revocation 6.7under this chapter, until the following August 31.6.8    Sec. 4. [82C.04] TERM OF LICENSE.6.9Initial licenses issued under this chapter are valid for a period not to exceed one 6.10year. Each initial license must expire on August 31 of the expiration year assigned by 6.11the commissioner.6.12    Sec. 5. [82C.05] LICENSE RENEWAL.6.13    Subdivision 1.Term.Licenses renewed under this chapter are valid for a period 6.14of 12 months.6.15    Subd. 2.Timely renewal.(a) Application for timely renewal of a license is 6.16considered timely filed if received by the commissioner before the date of the license 6.17expiration.6.18(b) An application for renewal is considered properly filed if made upon a form 6.19prescribed by the commissioner, accompanied by fees prescribed by this chapter, and 6.20containing any information the commissioner requires.6.21(c) A licensee failing to make timely application for renewal of the license is 6.22unlicensed until the renewal license has been issued by the commissioner and is received 6.23by the licensee.6.24    Subd. 3.Contents of renewal application.Application for the renewal of an 6.25existing license must contain the information specified in section 82C.03. However, only 6.26the requested information having changed from the most recent prior application need 6.27be submitted.6.28    Subd. 4.Cancellation.A licensee ceasing an activity or activities regulated by this 6.29chapter and desiring to no longer be licensed shall so inform the commissioner in writing 6.30and, at the same time, surrender the license and all other symbols or indicia of licensure.6.31    Sec. 6. [82C.06] EXEMPTIONS.6.32This chapter does not apply to:7.1(1) a person that exclusively employs appraisers on an employer and employee 7.2basis for the performance of appraisals, and:7.3(i) the employer is responsible for ensuring that the appraisals are performed by 7.4employees in accordance with USPAP; and7.5(ii) the employer accepts all liability associated with the performance of the 7.6appraisal by the employee;7.7(2) a department or unit within a financial institution that is subject to direct 7.8regulation by an agency of the United States government, or to regulation by an agency of 7.9this state, that receives a request for the performance of an appraisal from one employee of 7.10the financial institution, and another employee of the same financial institution assigns the 7.11request for the appraisal to an appraiser that is an independent contractor to the institution, 7.12except that an appraisal management company that is a wholly owned subsidiary of 7.13a financial institution shall not be considered a department or unit within a financial 7.14institution to which the provisions of this chapter do not apply;7.15(3) a person that enters into an agreement, whether written or otherwise, with an 7.16appraiser for the performance of an appraisal, and upon the completion of the appraisal, 7.17the report of the appraiser performing the appraisal is signed by both the appraiser who 7.18completed the appraisal and the appraiser who requested the completion of the appraisal, 7.19except that an appraisal management company may not avoid the requirements of this 7.20chapter by requiring that an employee of the appraisal management company that is an 7.21appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal 7.22panel of the appraisal management company; or7.23(4) any governmental agency performing appraisals on behalf of that level of 7.24government or any agency performing ad valorem tax appraisals for county assessors.7.25    Sec. 7. [82C.07] CONSENT TO SERVICE OF PROCESS.7.26Each entity applying for a license as an appraisal management company in this state 7.27shall complete an irrevocable Uniform Consent to Service of Process as prescribed by 7.28the commissioner.7.29    Sec. 8. [82C.08] LICENSING FEES.7.30    Subdivision 1.Establishment and retention.The fees shall be retained by the 7.31commissioner for the sole purpose of administering this licensing and regulation program.7.32    Subd. 2.Amounts.(a) Each application for initial licensure shall be accompanied 7.33by a fee of $5,000.8.1(b) Each application for renewal of the license must be received prior to the two-year 8.2expiration period with the renewal fee of $2,500.8.3    Subd. 3.Forfeiture.All fees are nonrefundable except that an overpayment of a fee 8.4must be refunded upon proper application.8.5    Sec. 9. [82C.09] INVESTIGATIONS AND SUBPOENAS.8.6The commissioner has under this chapter the same powers with respect to chapter 8.745.027, including the authority to impose a civil penalty not to exceed $10,000 per 8.8violation.8.9    Sec. 10. [82C.10] EMPLOYEE REQUIREMENTS.8.10An employee of the appraisal management company that has the responsibility to 8.11review the work of employed and independent appraisers where the subject properties are 8.12located within this state, which include the reviewer's opinion of value or concurrence 8.13with the original appraiser's value, must be licensed according to chapter 82B and perform 8.14the review assignments in compliance with USPAP and chapter 82B. This requirement 8.15does not apply to employees who review appraisals for completeness and compliance in 8.16connection with an appraisal management company's internal quality control processes, 8.17but who do not perform appraisal reviews that are subject to Standard 3 of USPAP.8.18    Sec. 11. [82C.11] LIMITATIONS.8.19An appraisal management company licensed in this state pursuant to this chapter 8.20may enter into contracts or agreements for appraisal assignments in this state only with 8.21an employee or independent appraiser holding an active Minnesota real estate appraiser 8.22license pursuant to chapter 82B.8.23    Sec. 12. [82C.12] ADHERENCE TO STANDARDS.8.24An appraisal management company must have a system in place to review the 8.25work of all employed and independent appraisers that are performing real estate appraisal 8.26assignments for the appraisal management company on a periodic basis to verify that 8.27the real estate appraisal services are being conducted in accordance with USPAP and 8.28chapter 82B. An appraisal management company is required to make referrals directly to 8.29state appraiser regulatory authorities when a state licensed or certified appraiser violates 8.30USPAP, applicable state law, or engages in other unethical or unprofessional conduct.8.31    Sec. 13. [82C.13] RECORD KEEPING.9.1An appraisal management company must maintain a detailed record of each service 9.2request that it receives and the employee appraiser or independent appraiser that performs 9.3the appraisal assignment for the appraisal management company.9.4Records must be kept for a period of at least five years after the appraisal assignment 9.5request is sent to the independent appraiser or completion of the appraisal report, 9.6whichever period expires later.9.7    Sec. 14. [82C.14] APPRAISER INDEPENDENCE; PROHIBITIONS.9.8(a) It is unlawful for any employee, director, officer, or agent of an appraisal 9.9management company licensed in this state pursuant to this chapter to influence or attempt 9.10to influence the development, reporting, or review of an appraisal through coercion, 9.11extortion, collusion, compensation, inducement, intimidation, or bribery, including but 9.12not limited to:9.13(1) withholding or threatening to withhold timely payment for an appraisal;9.14(2) withholding or threatening to withhold future business or assignments for an 9.15employed or independent appraiser, or demoting or terminating or threatening to demote 9.16or terminate an employed or independent appraiser;9.17(3) expressly or impliedly promising future business, assignments, promotions, or 9.18increased compensation for an employed or independent appraiser;9.19(4) conditioning the request for an appraisal assignment on the payment of an 9.20appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, 9.21or on a preliminary estimate or opinion requested from an employed or independent 9.22appraiser;9.23(5) requesting that an employed or independent appraiser provide an estimated, 9.24predetermined, or desired valuation in an appraisal report, or provide estimated values or 9.25comparable sales at any time prior to the completion of an appraisal assignment;9.26(6) providing to an employed or independent appraiser an anticipated, estimated, 9.27encouraged, or desired value for a subject property or a proposed or target amount to be 9.28loaned to the borrower, except that a copy of the sales contract for purchase transactions 9.29may be provided;9.30(7) providing to an employed or independent appraiser, or any entity or person 9.31related to the appraiser, stock, or other financial or nonfinancial benefits;9.32(8) allowing the removal of an employed or independent appraiser from a list of 9.33qualified appraisers used by any entity, without prior written notice to the appraiser, which 9.34notice must include documented evidence of the appraiser's violation of USPAP, chapter 9.3582B, substandard performance, or otherwise improper or unprofessional behavior;10.1(9) request or require any employed or independent appraiser to provide the 10.2appraisal management company or any of its employees, or any of its clients, with the 10.3appraiser's digital signature;10.4(10) alter, amend, or change an appraisal report submitted by an appraiser, to include 10.5removing or applying a signature, adding or deleting information from the appraisal report;10.6(11) require the appraiser to collect the fee from a borrower, homeowner, or other 10.7person;10.8(12) require an appraiser to sign any indemnification agreement that would require 10.9the appraiser to defend and hold harmless the appraisal management company or any of its 10.10agents, or employees for any liability, damage, losses, or claims arising out of the services 10.11performed by the appraisal management company or its agents, employees, or independent 10.12contractors and not the services performed by the appraiser;10.13(13) use an appraiser directly selected or referred by any member of a loan 10.14production staff for an individual assignment; or10.15(14) any other act or practice that impairs or attempts to impair an appraiser's 10.16independence, objectivity, or impartiality.10.17(b) Nothing in paragraph (a) prohibits the appraisal management company from 10.18requesting that an independent appraiser:10.19(1) consider additional appropriate property information;10.20(2) provide further detail, substantiation, or explanation for the appraiser's value 10.21conclusion; or10.22(3) correct objective factual errors in an appraisal report.10.23    Sec. 15. [82C.15] ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL 10.24MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER.10.25Except within the first 30 days after an independent appraiser is first added to the 10.26appraiser panel of an appraisal management company, an appraisal management company 10.27may not remove an appraiser from its appraiser panel, or otherwise refuse to assign 10.28requests for real estate appraisal services to an independent appraiser without:10.29(1) notifying the appraiser in writing of the reasons why the appraiser is being 10.30removed from the appraiser panel or is not receiving appraisal requests from the appraisal 10.31management company;10.32(2) if the appraiser is being removed from the panel for illegal conduct, having 10.33determined that the appraiser has violated USPAP, or chapter 82B, taking into account the 10.34nature of the alleged conduct or violation; and11.1(3) providing an opportunity for the appraiser to respond and appeal the notification 11.2of the appraisal management company.11.3    Sec. 16. [82C.16] DENIAL, SUSPENSION, REVOCATION OF LICENSES.11.4    Subdivision 1.Powers of commissioner.The commissioner may by order take any 11.5or all of the following actions:11.6(1) bar a person from serving as an officer, director, partner, controlling person, 11.7or any similar role at an appraisal management company, if such person has ever been 11.8the subject of a final order suspending, revoking or denying a certification, registration 11.9or license as a realtor, broker, or appraiser, or a final order barring involvement in any 11.10industry or profession issued by this or another state or federal regulatory agency;11.11(2) deny, suspend, or revoke an appraisal management company license;11.12(3) censure an appraisal management company license; and11.13(4) impose a civil penalty as provided for in chapter 45.027.11.14(b) In order to take the action in paragraph (a), the commissioner must find:11.15(1) that the order is in the public interest; and11.16(2) that an officer, director, partner, employee, agent, controlling person or persons, 11.17or any person occupying a similar status or performing similar functions, has:11.18(i) violated any provision of this chapter;11.19(ii) filed an application for a license that is incomplete in any material respect or 11.20contains a statement that, in light of the circumstances under which it is made, is false or 11.21misleading with respect to a material fact;11.22(iii) failed to maintain compliance with the affirmations made under section 80C.03, 11.23subdivision 5;11.24(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, 11.25or dishonest act or practice, whether or not the act or practice involves the appraisal 11.26management company;11.27(v) engaged in an act or practice, whether or not the act or practice involves the 11.28business of appraisal management, appraisal assignments, or real estate mortgage related 11.29practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;11.30(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, 11.31or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral 11.32turpitude;11.33(vii) paid a civil penalty or been the subject of disciplinary action by the 11.34commissioner, or an order of suspension or revocation, cease and desist order, or 11.35injunction order, or an order barring involvement in an industry or profession issued by 12.1this or any other state or federal regulatory agency or government-sponsored enterprise, 12.2or by the secretary of Housing and Urban Development;12.3(viii) been found by a court of competent jurisdiction to have engaged in conduct 12.4evidencing gross negligence, fraud, misrepresentation, or deceit;12.5(ix) refused to cooperate with an investigation or examination by the commissioner;12.6(x) failed to pay any fee or assessment imposed by the commissioner; or12.7(xi) failed to comply with state and federal tax obligations.12.8    Subd. 2.Orders of the commissioner.To begin a proceeding under this section, 12.9the commissioner shall issue an order requiring the subject of the proceeding to show 12.10cause why action should not be taken against the licensee according to this section. The 12.11order must be calculated to give reasonable notice of the time and place for the hearing 12.12and must state the reasons for entry of the order. The commissioner may by order 12.13summarily suspend a license pending a final determination of an order to show cause. If a 12.14license is summarily suspended, pending final determination of an order to show cause, a 12.15hearing on the merits must be held within 30 days of the issuance of the order of summary 12.16suspension. All hearings must be conducted under chapter 14. After the hearing, the 12.17commissioner shall enter an order disposing of the matter as the facts require. If the 12.18subject of the order fails to appear at a hearing after having been duly notified of it, the 12.19subject is considered in default, and the proceeding may be determined against the subject 12.20of the order upon consideration of the order to show cause, the allegations of which may 12.21be considered to be true.12.22    Subd. 3.Actions against lapsed license.If a license lapses, is surrendered, 12.23withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute 12.24a proceeding under this subdivision within two years after the license was last effective 12.25and enter a revocation or suspension order as of the last date  which the license was in 12.26effect, and may impose a civil penalty as provided for in this section or section 45.027.12.27    Sec. 17. APPROPRIATION.12.28    $223,000 in fiscal year 2011 is appropriated from the general fund to the 12.29commissioner of commerce for implementing this article. The base appropriation for this 12.30program is $119,000 in fiscal year 2012 and $123,000 in fiscal year 2013.12.31ARTICLE 212.32REAL ESTATE APPRAISER ADVISORY BOARD12.33    Section 1. Minnesota Statutes 2009 Supplement, section 82B.05, subdivision 1, is 12.34amended to read:13.1    Subdivision 1. Members. The Real Estate Appraiser Advisory Board consists of 13.215 nine members appointed by the commissioner of commerce. Three of the members 13.3must be public members, four must be consumers of appraisal services, and eight three13.4must be real estate appraisers of whom not less than two members must be trainee real 13.5property appraisers, licensed real property appraisers, or certified residential real property 13.6appraisers, not less than two members and three must be certified general real property 13.7appraisers, and not less than one member of those members must be certified by the 13.8Appraisal Qualification Board of the Appraisal Foundation to teach the Uniform Standards 13.9of Professional Appraisal Practice. Each of the three categories of members must include 13.10at least one member who lives or works outside of the seven-county metropolitan area.13.11The board is governed by section 
         15.0575.13.12EFFECTIVE DATE.This section is effective August 1, 2010.13.13    Sec. 2. Minnesota Statutes 2008, section 82B.05, subdivision 5, is amended to read:13.14    Subd. 5. Conduct of meetings. Places of regular board meetings must be decided 13.15by the vote of members. Written notice must be given to each member of the time and 13.16place of each meeting of the board at least ten days before the scheduled date of regular 13.17board meetings. The board shall establish procedures for emergency board meetings and 13.18other operational procedures, subject to the approval of the commissioner.13.19The members of the board shall elect a chair from among the members to preside 13.20at board meetings.13.21A quorum of the board is eight five members.13.22The board shall meet at least once every six months as determined by a majority vote 13.23of the members or a call of the commissioner. The chair of the board may call a meeting at 13.24any other time, subject to the notice requirements of this section.13.25EFFECTIVE DATE.This section is effective August 1, 2010.13.26    Sec. 3. Minnesota Statutes 2008, section 82B.05, is amended by adding a subdivision 13.27to read:13.28    Subd. 7.Enforcement reports.The commissioner shall, on a regular basis, provide 13.29the board with the commissioner's enforcement reports.13.30EFFECTIVE DATE.This section is effective August 1, 2010.14.1    Sec. 4. Minnesota Statutes 2008, section 82B.06, is amended to read:14.282B.06 POWERS OF THE BOARD.14.3The board shall make recommendations to the commissioner as the commissioner 14.4requests or at the board's own initiative on:14.5(1) rules with respect to each category of licensed real estate appraiser, the type of 14.6educational experience, appraisal experience, and equivalent experience that will meet 14.7the requirements of this chapter;14.8(2) examination specifications for each category of licensed real estate appraiser, 14.9to assist in providing or obtaining appropriate examination questions and answers, and 14.10procedures for grading examinations;14.11(3) rules with respect to each category of licensed real estate appraiser, the 14.12continuing education requirements for the renewal of licensing that will meet the 14.13requirements provided in this chapter;14.14(4) periodic review of the standards for the development and communication of 14.15real estate appraisals provided in this chapter and rules explaining and interpreting the 14.16standards; and14.17(5) other matters necessary in carrying out the provisions of this chapter.14.18EFFECTIVE DATE.This section is effective August 1, 2010.