<a id="pl.1.3"></a><var>1.3</var>related to staff adjusters, canceled licenses, and transfer fees; providing producer <br/>
<a id="pl.1.4"></a><var>1.4</var>training requirements for flood insurance products; regulating the Commerce <br/>
<a id="pl.1.5"></a><var>1.5</var>Fraud Bureau; requiring property and casualty actuarial opinions of reserves and <br/>
<a id="pl.1.6"></a><var>1.6</var>supporting documentation; regulating the agricultural cooperative health plan for <br/>
<a id="pl.1.7"></a><var>1.7</var>farmers; regulating real property appraisals; providing application, education, <br/>
<a id="pl.1.8"></a><var>1.8</var>and training requirements; regulating certain Public Utilities Commission <br/>
<a id="pl.1.9"></a><var>1.9</var>requests relating to service of notices, orders, and other documents; eliminating <br/>
<a id="pl.1.10"></a><var>1.10</var>the membership camping license requirement; repealing an obsolete collection <br/>
<a id="pl.1.11"></a><var>1.11</var>agency rule; correcting cross-references; making adjustments to various dollar <br/>
<a id="pl.1.12"></a><var>1.12</var>amounts as required by state law; providing for a method to periodically update <br/>
<a id="pl.1.13"></a><var>1.13</var>Minnesota Statutes to reflect the current dollar amounts as adjusted; amending <br/>
<a id="pl.1.14"></a><var>1.14</var>Minnesota Statutes 2012, sections 13.712, by adding a subdivision; 45.0135; <br/>
<a id="pl.1.15"></a><var>1.15</var>45.027, subdivision 2; 45.307; 45.43; 47.59, subdivisions 3, 6; 56.12; 56.125, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivision 2; 56.131, subdivisions 2, 6; 60A.62, subdivision 1; 72B.10; 82.62, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivision 7; 82.63, subdivision 8; 82A.06, subdivision 2; 82A.13, subdivision <br/>
<a id="pl.1.18"></a><var>1.18</var>1; 82A.18, subdivision 2; 82B.08, by adding a subdivision; 82B.094; 82B.095, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision 2; 82B.10, subdivision 1; 82B.13, subdivisions 1, 4, 5, 8, by adding <br/>
<a id="pl.1.20"></a><var>1.20</var>a subdivision; 82C.16, subdivision 1; 216.17, subdivisions 2, 4; 216B.18; <br/>
<a id="pl.1.21"></a><var>1.21</var>299C.40, subdivision 1; 325G.22, subdivision 1; 510.02, subdivision 1; 550.37, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivisions 4, 4a, 6, 10, 12a, 23, 24; Laws 2007, chapter 147, article 12, section <br/>
<a id="pl.1.23"></a><var>1.23</var>14, as amended; proposing coding for new law in Minnesota Statutes, chapters <br/>
<a id="pl.1.24"></a><var>1.24</var>60A; 60K; repealing Minnesota Statutes 2012, sections 82A.16; 82A.17; <br/>
<a id="pl.1.25"></a><var>1.25</var>82B.095, subdivision 1; 115C.09, subdivision 3k; Laws 2000, chapter 488, <br/>
<a id="pl.1.26"></a><var>1.26</var>article 3, section 37; Minnesota Rules, part 2870.1500.<br/>
<a id="pl.1.27"></a><var>1.27</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.1.30"></a><var>1.30</var>    Section 1. <b>[60K.366] PRODUCER TRAINING REQUIREMENTS FOR FLOOD </b><br/>
<a id="pl.1.31"></a><var>1.31</var><b>INSURANCE PRODUCTS.</b><br/>
<a id="pl.2.1"></a><var>2.1</var>An individual may not sell, solicit, or negotiate flood insurance through the National <br/>
<a id="pl.2.2"></a><var>2.2</var>Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer <br/>
<a id="pl.2.3"></a><var>2.3</var>for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b), <br/>
<a id="pl.2.4"></a><var>2.4</var>clauses (3), (4), and (6), and has in addition to the training otherwise required by this <br/>
<a id="pl.2.5"></a><var>2.5</var>chapter, satisfied the minimum training and education requirements established by the <br/>
<a id="pl.2.6"></a><var>2.6</var>Federal Emergency Management Agency (FEMA) for all insurance producers who sell <br/>
<a id="pl.2.7"></a><var>2.7</var>insurance through the NFIP and published at 70 Federal Register 52, 117.<br/>
<a id="pl.2.8"></a><var>2.8</var>Upon request of the commissioner, an issuer must demonstrate to the commissioner <br/>
<a id="pl.2.9"></a><var>2.9</var>that its appointed producers who sell flood insurance through the NFIP have complied <br/>
<a id="pl.2.10"></a><var>2.10</var>with the minimum training and education requirements established by FEMA.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.11"></a><var>2.11</var>    Sec. 2. Minnesota Statutes 2012, section 72B.10, is amended to read:<br/>
<a id="pl.2.12"></a><var>2.12</var><b>72B.10 STAFF ADJUSTERS.</b><br/>
<a id="pl.2.13"></a><var>2.13</var>A staff adjuster who adjusts losses or claims in this state shall not be subject to <br/>
<a id="pl.2.14"></a><var>2.14</var>the application, licensing, or examination requirements or other qualifications set forth <br/>
<a id="pl.2.15"></a><var>2.15</var>in sections 
         <statute_ref>72B.01</statute_ref> to 
         <statute_ref>72B.14</statute_ref>. Such a staff adjuster shall not, however, engage in any <br/>
<a id="pl.2.16"></a><var>2.16</var>of the practices forbidden to a licensee under section 
         <statute_ref>72B.08, subdivision 1</statute_ref>, clause<br/>
<a id="pl.2.17"></a><var>2.17</var> clauses (3), (4), (5), (6), (7), or (8) through (15). If the commissioner has information, <br/>
<a id="pl.2.18"></a><var>2.18</var>which if true, would establish that a staff adjuster has engaged or is engaging in any such <br/>
<a id="pl.2.19"></a><var>2.19</var>prohibited practices, the commissioner may issue an order for a hearing to determine the <br/>
<a id="pl.2.20"></a><var>2.20</var>facts involved. The order shall fix the time and place for hearing. The staff adjuster <br/>
<a id="pl.2.21"></a><var>2.21</var>and one or more representatives of the insurer or insurers employing the staff adjuster <br/>
<a id="pl.2.22"></a><var>2.22</var>shall make an appearance at the hearing unless the commissioner expressly waives the <br/>
<a id="pl.2.23"></a><var>2.23</var>appearance of one or more such parties. If, following the hearing, the commissioner <br/>
<a id="pl.2.24"></a><var>2.24</var>determines that the staff adjuster has engaged or is engaging in any prohibited practices, <br/>
<a id="pl.2.25"></a><var>2.25</var>the commissioner may impose a fine, not in excess of $500, on the staff adjuster or on the <br/>
<a id="pl.2.26"></a><var>2.26</var>employing insurer or insurers, or on both such parties. In addition, the commissioner may <br/>
<a id="pl.2.27"></a><var>2.27</var>order the employing insurer to suspend the staff adjuster from all duties for such period as <br/>
<a id="pl.2.28"></a><var>2.28</var>the commissioner may deem appropriate.<br/>
<a id="pl.2.29"></a><var>2.29</var>Any final order of the commissioner shall be subject to judicial review. Any hearing <br/>
<a id="pl.2.30"></a><var>2.30</var>or judicial review under this section shall be in accordance with the contested case <br/>
<a id="pl.2.31"></a><var>2.31</var>provisions of chapter 14.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.32"></a><var>2.32</var>    Sec. 3. Minnesota Statutes 2012, section 82.62, subdivision 7, is amended to read:<br/>
<a id="pl.2.33"></a><var>2.33</var>    Subd. 7. <b>Cancellation</b><b> Reinstatement</b><b> of</b><b> canceled</b><b> salesperson's or broker's </b><br/>
<a id="pl.2.34"></a><var>2.34</var><b>license.</b> A salesperson's or broker's license that has been canceled for failure of a licensee <br/>
<a id="pl.3.1"></a><var>3.1</var>to complete postlicensing education requirements must be returned to the commissioner <br/>
<a id="pl.3.2"></a><var>3.2</var>by the licensee's broker within ten days of receipt of notice of cancellation. The license<br/>
<a id="pl.3.3"></a><var>3.3</var> shall be reinstated without reexamination by completing the required instruction, filing <br/>
<a id="pl.3.4"></a><var>3.4</var>an application, and paying the fee for a salesperson's or broker's license within two years <br/>
<a id="pl.3.5"></a><var>3.5</var>of the cancellation date.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.6"></a><var>3.6</var>    Sec. 4. Minnesota Statutes 2012, section 82.63, subdivision 8, is amended to read:<br/>
<a id="pl.3.7"></a><var>3.7</var>    Subd. 8. <b>Procedure.</b> An application for automatic transfer shall be made only on <br/>
<a id="pl.3.8"></a><var>3.8</var>the form prescribed by the commissioner. The transfer is ineffective if the form is not <br/>
<a id="pl.3.9"></a><var>3.9</var>completed in its entirety.<br/>
<a id="pl.3.10"></a><var>3.10</var>The form shall be accompanied by a $10 $20 transfer fee, and the license renewal <br/>
<a id="pl.3.11"></a><var>3.11</var>fee, if applicable. Cash will not be accepted.<br/>
<a id="pl.3.12"></a><var>3.12</var>The signature of the broker from whom the salesperson is transferring must predate <br/>
<a id="pl.3.13"></a><var>3.13</var>the signature of the broker to whom the salesperson is transferring. The salesperson is <br/>
<a id="pl.3.14"></a><var>3.14</var>unlicensed for the period of time between the times and dates of both signatures. The <br/>
<a id="pl.3.15"></a><var>3.15</var>broker from whom the salesperson is transferring shall sign and date the transfer application <br/>
<a id="pl.3.16"></a><var>3.16</var>upon the request of the salesperson and shall destroy the salesperson's license immediately.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.3.17"></a><var>3.17</var>    Sec. 5. Minnesota Statutes 2012, section 82A.06, subdivision 2, is amended to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 2. <b>Partial transactional exemptions.</b> The following transactions are exempt <br/>
<a id="pl.3.19"></a><var>3.19</var>from the provisions of sections 
         <statute_ref>82A.03</statute_ref>; 
         <statute_ref>82A.04</statute_ref>; 
         <statute_ref>82A.05</statute_ref>; 
         <statute_ref>82A.07</statute_ref>; 
         <statute_ref>82A.08</statute_ref>; 
         <statute_ref>82A.11</statute_ref>, <br/>
<a id="pl.3.20"></a><var>3.20</var>subdivisions 2 and 4; and
<statute_ref>82A.14</statute_ref>; 
<statute_ref>82A.16</statute_ref>; and 
<statute_ref>82A.17</statute_ref>: any sale which is made to a <br/>
<a id="pl.3.21"></a><var>3.21</var>person who is not then physically present in this state, and any offer which invites an <br/>
<a id="pl.3.22"></a><var>3.22</var>offeree to attend a sales presentation in another state if:<br/>
<a id="pl.3.23"></a><var>3.23</var>(1) the offeror has given at least ten days prior written notice to the commissioner <br/>
<a id="pl.3.24"></a><var>3.24</var>of its intention to offer or sell membership camping contracts to residents of this state <br/>
<a id="pl.3.25"></a><var>3.25</var>pursuant to this exemption and paid a fee of $50;<br/>
<a id="pl.3.26"></a><var>3.26</var>(2) the offeror has demonstrated that the sales presentation will be made, and the <br/>
<a id="pl.3.27"></a><var>3.27</var>sale will be consummated, in a state which specifically regulates the offer and sale of <br/>
<a id="pl.3.28"></a><var>3.28</var>membership camping contracts;<br/>
<a id="pl.3.29"></a><var>3.29</var>(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees <br/>
<a id="pl.3.30"></a><var>3.30</var>who are residents of this state which contains substantially the same or greater disclosure <br/>
<a id="pl.3.31"></a><var>3.31</var>as is required by section 
         <statute_ref>82A.05</statute_ref>; and<br/>
<a id="pl.3.32"></a><var>3.32</var>(4) the offeror has filed a consent to service of process pursuant to section 
         <statute_ref>82A.22</statute_ref>.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.3.33"></a><var>3.33</var>    Sec. 6. Minnesota Statutes 2012, section 82A.13, subdivision 1, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subdivision 1. <b>Untrue statements filed in documents.</b> No person shall make <br/>
<a id="pl.4.2"></a><var>4.2</var>or cause to be made any untrue statement of a material fact in an application or other <br/>
<a id="pl.4.3"></a><var>4.3</var>document filed with the commissioner under this chapter, or omit to state in the application <br/>
<a id="pl.4.4"></a><var>4.4</var>or other document any material fact which is required to be stated therein, or fail to <br/>
<a id="pl.4.5"></a><var>4.5</var>notify the commissioner of any material change as required by sections section
<statute_ref>82A.07</statute_ref> <br/>
<a id="pl.4.6"></a><var>4.6</var>and 
<statute_ref>82A.16, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 7. Minnesota Statutes 2012, section 82A.18, subdivision 2, is amended to read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 2. <b>Civil penalty.</b> Any person who materially or repeatedly violates section <br/>
<statute_ref><a id="pl.4.9"></a><var>4.9</var>82A.03
         </statute_ref>, 
         <statute_ref>82A.05</statute_ref>, 
         <statute_ref>82A.09</statute_ref>, 
         <statute_ref>82A.13</statute_ref>, or 
<statute_ref>82A.14</statute_ref>, or 
<statute_ref>82A.16</statute_ref> shall be subject to a fine of not <br/>
<a id="pl.4.10"></a><var>4.10</var>more than $1,000 for each violation provided, however, that the total recovery arising from <br/>
<a id="pl.4.11"></a><var>4.11</var>the same failure to comply, but involving different purchasers, shall be limited to $5,000. A <br/>
<a id="pl.4.12"></a><var>4.12</var>fine authorized by this subdivision may be imposed in a civil action brought by the attorney <br/>
<a id="pl.4.13"></a><var>4.13</var>general on behalf of the state of Minnesota, and shall be deposited into the state treasury.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.4.14"></a><var>4.14</var>    Sec. 8. Minnesota Statutes 2012, section 82C.16, subdivision 1, is amended to read:<br/>
<a id="pl.4.15"></a><var>4.15</var>    Subdivision 1. <b>Powers of commissioner.</b> (a) The commissioner may by order <br/>
<a id="pl.4.16"></a><var>4.16</var>take any or all of the following actions:<br/>
<a id="pl.4.17"></a><var>4.17</var>(1) bar a person from serving as an officer, director, partner, controlling person, or <br/>
<a id="pl.4.18"></a><var>4.18</var>any similar role at an appraisal management company, if such person has ever been the <br/>
<a id="pl.4.19"></a><var>4.19</var>subject of a final order suspending, revoking, or denying a certification, registration, or <br/>
<a id="pl.4.20"></a><var>4.20</var>license as a real estate agent, broker, or appraiser, or a final order barring involvement in <br/>
<a id="pl.4.21"></a><var>4.21</var>any industry or profession issued by this or another state or federal regulatory agency;<br/>
<a id="pl.4.22"></a><var>4.22</var>(2) deny, suspend, or revoke an appraisal management company license;<br/>
<a id="pl.4.23"></a><var>4.23</var>(3) censure an appraisal management company license; and<br/>
<a id="pl.4.24"></a><var>4.24</var>(4) impose a civil penalty as provided for in chapter 
         <statute_ref>45.027</statute_ref>.<br/>
<a id="pl.4.25"></a><var>4.25</var>(b) In order to take the action in paragraph (a), the commissioner must find:<br/>
<a id="pl.4.26"></a><var>4.26</var>(1) that the order is in the public interest; and<br/>
<a id="pl.4.27"></a><var>4.27</var>(2) that an officer, director, partner, employee, agent, controlling person or persons, <br/>
<a id="pl.4.28"></a><var>4.28</var>or any person occupying a similar status or performing similar functions, has:<br/>
<a id="pl.4.29"></a><var>4.29</var>(i) violated any provision of this chapter;<br/>
<a id="pl.4.30"></a><var>4.30</var>(ii) filed an application for a license that is incomplete in any material respect or <br/>
<a id="pl.4.31"></a><var>4.31</var>contains a statement that, in light of the circumstances under which it is made, is false or <br/>
<a id="pl.4.32"></a><var>4.32</var>misleading with respect to a material fact;<br/>
<a id="pl.4.33"></a><var>4.33</var>(iii) failed to maintain compliance with the affirmations made under section 
         <statute_ref>80C.03<br/>
<a id="pl.4.34"></a><var>4.34</var></statute_ref> 82C.03, subdivision 5;<br/>
<a id="pl.5.1"></a><var>5.1</var>(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, <br/>
<a id="pl.5.2"></a><var>5.2</var>or dishonest act or practice, whether or not the act or practice involves the appraisal <br/>
<a id="pl.5.3"></a><var>5.3</var>management company;<br/>
<a id="pl.5.4"></a><var>5.4</var>(v) engaged in an act or practice, whether or not the act or practice involves the <br/>
<a id="pl.5.5"></a><var>5.5</var>business of appraisal management, appraisal assignments, or real estate mortgage related <br/>
<a id="pl.5.6"></a><var>5.6</var>practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;<br/>
<a id="pl.5.7"></a><var>5.7</var>(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, <br/>
<a id="pl.5.8"></a><var>5.8</var>or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral <br/>
<a id="pl.5.9"></a><var>5.9</var>turpitude;<br/>
<a id="pl.5.10"></a><var>5.10</var>(vii) paid a civil penalty or been the subject of disciplinary action by the <br/>
<a id="pl.5.11"></a><var>5.11</var>commissioner, or an order of suspension or revocation, cease and desist order, or <br/>
<a id="pl.5.12"></a><var>5.12</var>injunction order, or an order barring involvement in an industry or profession issued by <br/>
<a id="pl.5.13"></a><var>5.13</var>this or any other state or federal regulatory agency or government-sponsored enterprise, <br/>
<a id="pl.5.14"></a><var>5.14</var>or by the secretary of Housing and Urban Development;<br/>
<a id="pl.5.15"></a><var>5.15</var>(viii) been found by a court of competent jurisdiction to have engaged in conduct <br/>
<a id="pl.5.16"></a><var>5.16</var>evidencing gross negligence, fraud, misrepresentation, or deceit;<br/>
<a id="pl.5.17"></a><var>5.17</var>(ix) refused to cooperate with an investigation or examination by the commissioner;<br/>
<a id="pl.5.18"></a><var>5.18</var>(x) failed to pay any fee or assessment imposed by the commissioner; or<br/>
<a id="pl.5.19"></a><var>5.19</var>(xi) failed to comply with state and federal tax obligations.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.5.20"></a><var>5.20</var>    Sec. 9. Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, <br/>
<a id="pl.5.21"></a><var>5.21</var>chapter 344, section 4, subdivision 1, and Laws 2010, chapter 384, section 99, is amended <br/>
<a id="pl.5.22"></a><var>5.22</var>to read:<br/>
<a id="pl.5.23"></a><var>5.23</var>    Sec. 14. <b>AGRICULTURAL COOPERATIVE HEALTH PLAN FOR </b><br/>
<a id="pl.5.24"></a><var>5.24</var><b>FARMERS.</b><br/>
<a id="pl.5.25"></a><var>5.25</var>    Subdivision 1. <b>Pilot project requirements.</b> Notwithstanding contrary provisions of <br/>
<a id="pl.5.26"></a><var>5.26</var>Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project <br/>
<a id="pl.5.27"></a><var>5.27</var>administered by a trust sponsored by one or more agricultural cooperatives organized <br/>
<a id="pl.5.28"></a><var>5.28</var>under Minnesota Statutes, chapter 308A or 308B, or under a federal charter for the <br/>
<a id="pl.5.29"></a><var>5.29</var>purpose of offering health coverage to members of the cooperatives and their families, <br/>
<a id="pl.5.30"></a><var>5.30</var>provided the project satisfies the other requirements of Minnesota Statutes, chapter 62H:<br/>
<a id="pl.5.31"></a><var>5.31</var>    (1) Minnesota Statutes, section 
<statute_ref>62H.02</statute_ref>, paragraph (b), does not apply;<br/>
<a id="pl.5.32"></a><var>5.32</var>    (2) the notice period required under Minnesota Statutes, section 
<statute_ref>62H.02</statute_ref>, paragraph <br/>
<a id="pl.5.33"></a><var>5.33</var>(e), is 90 days;<br/>
<a id="pl.5.34"></a><var>5.34</var>    (3) (1) a joint self-insurance plan may elect to treat the sale of a health plan to or <br/>
<a id="pl.5.35"></a><var>5.35</var>for an employer that has only one eligible employee who has not waived coverage as the <br/>
<a id="pl.6.1"></a><var>6.1</var>sale of an individual health plan as allowed under Minnesota Statutes, section 
         <statute_ref>62L.02, <br/>
<a id="pl.6.2"></a><var>6.2</var>subdivision 26
         </statute_ref>;<br/>
<a id="pl.6.3"></a><var>6.3</var>(2) notwithstanding Minnesota Statutes, section 62H.05, the cooperative board of <br/>
<a id="pl.6.4"></a><var>6.4</var>trustees shall consist of a minimum of five and a maximum of nine trustees;<br/>
<a id="pl.6.5"></a><var>6.5</var>(3) notwithstanding any other provisions of state law, a trust created under Minnesota <br/>
<a id="pl.6.6"></a><var>6.6</var>Statutes, section 62H.05, may be identified as a "cooperative trust" if it is a part of an <br/>
<a id="pl.6.7"></a><var>6.7</var>agricultural cooperative health plan for farmers under this section;<br/>
<a id="pl.6.8"></a><var>6.8</var>(4) Minnesota Statutes, section 62H.11, does not apply, and notwithstanding <br/>
<a id="pl.6.9"></a><var>6.9</var>contrary provisions of Minnesota law, the agricultural cooperatives may undertake <br/>
<a id="pl.6.10"></a><var>6.10</var>activities directly and through agents, brokers, third-party administrators and other entities <br/>
<a id="pl.6.11"></a><var>6.11</var>to promote and market the health plan to members of the cooperatives prior to approval <br/>
<a id="pl.6.12"></a><var>6.12</var>of the joint self-insurance plan;<br/>
<a id="pl.6.13"></a><var>6.13</var>(5) the joint self-insurance plan is exempt from the requirement in Minnesota <br/>
<a id="pl.6.14"></a><var>6.14</var>Statutes, section 62H.01, to have 1,000 covered enrollees at initial enrollment when the <br/>
<a id="pl.6.15"></a><var>6.15</var>following conditions are met:<br/>
<a id="pl.6.16"></a><var>6.16</var>(i) the plan secures approval from the commissioner of commerce of marketing <br/>
<a id="pl.6.17"></a><var>6.17</var>materials, policy forms, and application forms prior to their use in securing preenrollment <br/>
<a id="pl.6.18"></a><var>6.18</var>commitments; and<br/>
<a id="pl.6.19"></a><var>6.19</var>(ii) the plan receives commitments in the form of executed letters of intent to <br/>
<a id="pl.6.20"></a><var>6.20</var>enroll from a minimum of 1,000 individuals within 12 months of approval of policy and <br/>
<a id="pl.6.21"></a><var>6.21</var>application forms by the commissioner of commerce;<br/>
<a id="pl.6.22"></a><var>6.22</var>(6) the plan must secure prior to initial enrollment aggregate stop-loss coverage and <br/>
<a id="pl.6.23"></a><var>6.23</var>individual stop-loss coverage provided by an insurance company licensed by the state of <br/>
<a id="pl.6.24"></a><var>6.24</var>Minnesota. The plan must submit the stop-loss insurance contract to the commissioner of <br/>
<a id="pl.6.25"></a><var>6.25</var>commerce at least 30 days prior to the proposed plan's effective date and at least 30 days <br/>
<a id="pl.6.26"></a><var>6.26</var>subsequent to any renewal date. Any excess or stop-loss insurance plan must contain a <br/>
<a id="pl.6.27"></a><var>6.27</var>provision that the excess or stop-loss insurer will give the plan and the commissioner of <br/>
<a id="pl.6.28"></a><var>6.28</var>commerce a minimum of 180 days notice of termination or nonrenewal. If the plan fails to <br/>
<a id="pl.6.29"></a><var>6.29</var>secure replacement coverage within 150 days after receipt of the notice of cancellation or <br/>
<a id="pl.6.30"></a><var>6.30</var>nonrenewal, the commissioner shall issue an order providing for the orderly termination of <br/>
<a id="pl.6.31"></a><var>6.31</var>the plan;<br/>
<a id="pl.6.32"></a><var>6.32</var>(7) the cooperative must establish a reserve fund, certified by an actuary to be <br/>
<a id="pl.6.33"></a><var>6.33</var>sufficient to cover unpaid claim liability for incurred but not reported liabilities in the <br/>
<a id="pl.6.34"></a><var>6.34</var>event of plan termination. Actuarial certification must include all maximum funding <br/>
<a id="pl.6.35"></a><var>6.35</var>requirements for plan fixed cost requirements and current claims liability requirements and <br/>
<a id="pl.6.36"></a><var>6.36</var>must include calculation for the reserve levels needed to fund all incurred but not reported <br/>
<a id="pl.7.1"></a><var>7.1</var>liabilities in the event of member or plan termination. All such reserve funds will be held <br/>
<a id="pl.7.2"></a><var>7.2</var>in protection of a cooperative trust, in accordance with the plan bylaws. An initial deposit <br/>
<a id="pl.7.3"></a><var>7.3</var>shall be made to the trust fund in an amount equal to the annual estimated reserve amount <br/>
<a id="pl.7.4"></a><var>7.4</var>for each of the members required for initial approval as provided by clause (5). In addition <br/>
<a id="pl.7.5"></a><var>7.5</var>to the initial deposit, monthly reserve funding will continue from a portion of billed rates <br/>
<a id="pl.7.6"></a><var>7.6</var>collected from participants which will be based on standard actuarial calculations. The <br/>
<a id="pl.7.7"></a><var>7.7</var>plan will provide scheduled financial reports to the commissioner of commerce for audit <br/>
<a id="pl.7.8"></a><var>7.8</var>of the financial health of the plan in meeting all plan liabilities;<br/>
<a id="pl.7.9"></a><var>7.9</var>    (4) (8) Minnesota Statutes, section 
         <statute_ref>297I.05, subdivision 12</statute_ref>, paragraph (c), applies; <br/>
<a id="pl.7.10"></a><var>7.10</var>and<br/>
<a id="pl.7.11"></a><var>7.11</var>    (5) (9) the trust must pay the assessment for the Minnesota Comprehensive Health <br/>
<a id="pl.7.12"></a><var>7.12</var>Association as provided under Minnesota Statutes, section 
         <statute_ref>62E.11</statute_ref>.<br/>
<a id="pl.7.13"></a><var>7.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.7.14"></a><var>7.14</var>    Sec. 10. <b> REPEALER.</b><br/>
<a id="pl.7.15"></a><var>7.15</var>    Subdivision 1. <b>Membership camping licensing requirement for salespersons or </b><br/>
<a id="pl.7.16"></a><var>7.16</var><b>brokers.</b>  Minnesota Statutes 2012, sections 82A.16; and 82A.17, are repealed.<br/>
<a id="pl.7.17"></a><var>7.17</var>    Subd. 2. <b>Collection agency license renewal; obsolete rule.</b> Minnesota Rules, part <br/>
<a id="pl.7.18"></a><var>7.18</var>2870.1500, is repealed.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.7.21"></a><var>7.21</var>    Section 1. Minnesota Statutes 2012, section 47.59, subdivision 3, is amended to read:<br/>
<a id="pl.7.22"></a><var>7.22</var>    Subd. 3. <b>Finance charge for loans.</b> (a) With respect to a loan, including a loan <br/>
<a id="pl.7.23"></a><var>7.23</var>pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a <br/>
<a id="pl.7.24"></a><var>7.24</var>financial institution may contract for and receive a finance charge on the unpaid balance of <br/>
<a id="pl.7.25"></a><var>7.25</var>the principal amount not to exceed the greater of:<br/>
<a id="pl.7.26"></a><var>7.26</var>(1) an annual percentage rate not exceeding 21.75 percent; or <br/>
<a id="pl.7.27"></a><var>7.27</var>(2) the total of:<br/>
<a id="pl.7.28"></a><var>7.28</var>(i) 33 percent per year on that part of the unpaid balance of the principal amount <br/>
<a id="pl.7.29"></a><var>7.29</var>not exceeding $750 $1,125; and<br/>
<a id="pl.7.30"></a><var>7.30</var>(ii) 19 percent per year on that part of the unpaid balance of the principal amount <br/>
<a id="pl.7.31"></a><var>7.31</var>exceeding $750 $1,125.<br/>
<a id="pl.8.1"></a><var>8.1</var>With respect to open-end credit pursuant to a credit card, the financial institution <br/>
<a id="pl.8.2"></a><var>8.2</var>may contract for and receive a finance charge on the unpaid balance of the principal <br/>
<a id="pl.8.3"></a><var>8.3</var>amount at an annual percentage rate not exceeding 18 percent per year.<br/>
<a id="pl.8.4"></a><var>8.4</var>(b) On a loan where the finance charge is calculated according to the method <br/>
<a id="pl.8.5"></a><var>8.5</var>provided for in paragraph (a), clause (2), the finance charge must be contracted for and <br/>
<a id="pl.8.6"></a><var>8.6</var>earned as provided in that provision or at the single annual percentage rate computed to <br/>
<a id="pl.8.7"></a><var>8.7</var>the nearest one-tenth of one percent that would earn the same total finance charge at <br/>
<a id="pl.8.8"></a><var>8.8</var>maturity of the contract as would be earned by the application of the graduated rates <br/>
<a id="pl.8.9"></a><var>8.9</var>provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms <br/>
<a id="pl.8.10"></a><var>8.10</var>and the calculations are made according to the actuarial method.<br/>
<a id="pl.8.11"></a><var>8.11</var>(c) With respect to a loan, the finance charge must be considered not to exceed <br/>
<a id="pl.8.12"></a><var>8.12</var>the maximum annual percentage rate permitted under this section if the finance charge <br/>
<a id="pl.8.13"></a><var>8.13</var>contracted for and received does not exceed the equivalent of the maximum annual <br/>
<a id="pl.8.14"></a><var>8.14</var>percentage rate calculated in accordance with Code of Federal Regulations, title 12, part <br/>
<a id="pl.8.15"></a><var>8.15</var>226, but using the definition of finance charge provided in this section.<br/>
<a id="pl.8.16"></a><var>8.16</var>(d) This subdivision does not limit or restrict the manner of calculating the finance <br/>
<a id="pl.8.17"></a><var>8.17</var>charge, whether by way of add-on, discount, discount points, precomputed charges, single <br/>
<a id="pl.8.18"></a><var>8.18</var>annual percentage rate, variable rate, interest in advance, compounding, average daily <br/>
<a id="pl.8.19"></a><var>8.19</var>balance method, or otherwise, if the annual percentage rate does not exceed that permitted <br/>
<a id="pl.8.20"></a><var>8.20</var>by this section. Discount points permitted by this paragraph and not collected but included <br/>
<a id="pl.8.21"></a><var>8.21</var>in the principal amount must not be included in the amount on which credit insurance <br/>
<a id="pl.8.22"></a><var>8.22</var>premiums are calculated and charged.<br/>
<a id="pl.8.23"></a><var>8.23</var>(e) With respect to a loan secured by real estate, if a finance charge is calculated or <br/>
<a id="pl.8.24"></a><var>8.24</var>collected in advance, or included in the principal amount of the loan, and the borrower <br/>
<a id="pl.8.25"></a><var>8.25</var>prepays the loan in full, the financial institution shall credit the borrower with a refund of <br/>
<a id="pl.8.26"></a><var>8.26</var>the charge to the extent that the annual percentage rate yield on the loan would exceed the <br/>
<a id="pl.8.27"></a><var>8.27</var>maximum rate permitted under paragraph (a), taking into account the prepayment. The <br/>
<a id="pl.8.28"></a><var>8.28</var>refund need not be made if it would be less than $5 $7.50.<br/>
<a id="pl.8.29"></a><var>8.29</var>(f) With respect to all other loans, if the finance charge is calculated or collected in <br/>
<a id="pl.8.30"></a><var>8.30</var>advance, or included in the principal amount of the loan, and the borrower prepays the <br/>
<a id="pl.8.31"></a><var>8.31</var>loan in full, the financial institution shall credit the borrower with a refund of the charge to <br/>
<a id="pl.8.32"></a><var>8.32</var>the extent the annual percentage rate yield on the loan would exceed the annual percentage <br/>
<a id="pl.8.33"></a><var>8.33</var>rate on the loan as originally determined under paragraph (a) and taking into account the <br/>
<a id="pl.8.34"></a><var>8.34</var>prepayment. The refund need not be made if it would be less than $5 $7.50.<br/>
<a id="pl.8.35"></a><var>8.35</var>(g) For the purpose of calculating the refund under this subdivision, the financial <br/>
<a id="pl.8.36"></a><var>8.36</var>institution may assume that the contract was paid before the date of prepayment according <br/>
<a id="pl.9.1"></a><var>9.1</var>to the schedule of payments under the loan and that all payments were paid on their due <br/>
<a id="pl.9.2"></a><var>9.2</var>dates.<br/>
<a id="pl.9.3"></a><var>9.3</var>(h) For loans repayable in substantially equal successive monthly installments, the <br/>
<a id="pl.9.4"></a><var>9.4</var>financial institution may calculate the refund under paragraph (f) as the portion of the <br/>
<a id="pl.9.5"></a><var>9.5</var>finance charge allocable on an actuarial basis to all wholly unexpired payment periods <br/>
<a id="pl.9.6"></a><var>9.6</var>following the date of prepayment, based on the annual percentage rate on the loan as <br/>
<a id="pl.9.7"></a><var>9.7</var>originally determined under paragraph (a), and for the purpose of calculating the refund <br/>
<a id="pl.9.8"></a><var>9.8</var>may assume that all payments are made on the due date.<br/>
<a id="pl.9.9"></a><var>9.9</var>(i) The dollar amounts in this subdivision and, subdivision 6, paragraph (a), clause <br/>
<a id="pl.9.10"></a><var>9.10</var>(4), and the dollar amount of original principal amount of closed-end credit in subdivision <br/>
<a id="pl.9.11"></a><var>9.11</var>6, paragraph (d), shall change periodically, as provided in this section, according to and to <br/>
<a id="pl.9.12"></a><var>9.12</var>the extent of changes in the implicit price deflator for the gross domestic product, 1987<br/>
<a id="pl.9.13"></a><var>9.13</var> 2005 = 100, compiled by the United States Department of Commerce, and hereafter <br/>
<a id="pl.9.14"></a><var>9.14</var>referred to as the index. The index for December 1991 2011 is the reference base index for <br/>
<a id="pl.9.15"></a><var>9.15</var>adjustments of dollar amounts.<br/>
<a id="pl.9.16"></a><var>9.16</var>(j) The designated dollar amounts shall change on July 1 of each even-numbered <br/>
<a id="pl.9.17"></a><var>9.17</var>year if the percentage of change, calculated to the nearest whole percentage point, <br/>
<a id="pl.9.18"></a><var>9.18</var>between the index for December of the preceding year and the reference base index is <br/>
<a id="pl.9.19"></a><var>9.19</var>ten percent or more; but<br/>
<a id="pl.9.20"></a><var>9.20</var>(1) the portion of the percentage change in the index in excess of a multiple of ten <br/>
<a id="pl.9.21"></a><var>9.21</var>percent shall be disregarded and the dollar amounts shall change only in multiples of ten <br/>
<a id="pl.9.22"></a><var>9.22</var>percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and<br/>
<a id="pl.9.23"></a><var>9.23</var>(2) the dollar amounts shall not change if the amounts required by this section <br/>
<a id="pl.9.24"></a><var>9.24</var>are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier <br/>
<a id="pl.9.25"></a><var>9.25</var>application of this section.<br/>
<a id="pl.9.26"></a><var>9.26</var>(k) If the index is revised, the percentage of change pursuant to this section shall <br/>
<a id="pl.9.27"></a><var>9.27</var>be calculated on the basis of the revised index. If a revision of the index changes the <br/>
<a id="pl.9.28"></a><var>9.28</var>reference base index, a revised reference base index shall be determined by multiplying the <br/>
<a id="pl.9.29"></a><var>9.29</var>reference base index then applicable by the rebasing factor furnished by the Department <br/>
<a id="pl.9.30"></a><var>9.30</var>of Commerce. If the index is superseded, the index referred to in this section is the one <br/>
<a id="pl.9.31"></a><var>9.31</var>represented by the Department of Commerce as reflecting most accurately changes in the <br/>
<a id="pl.9.32"></a><var>9.32</var>purchasing power of the dollar for consumers.<br/>
<a id="pl.9.33"></a><var>9.33</var>(l) The commissioner shall announce and publish:<br/>
<a id="pl.9.34"></a><var>9.34</var>(1) announce and publish on or before April 30 of each year in which dollar amounts <br/>
<a id="pl.9.35"></a><var>9.35</var>are to change, the changes in dollar amounts required by paragraph (j); and<br/>
<a id="pl.10.1"></a><var>10.1</var>(2) announce and publish promptly after the changes occur, changes in the index <br/>
<a id="pl.10.2"></a><var>10.2</var>required by paragraph (k) including, if applicable, the numerical equivalent of the <br/>
<a id="pl.10.3"></a><var>10.3</var>reference base index under a revised reference base index and the designation or title <br/>
<a id="pl.10.4"></a><var>10.4</var>of any index superseding the index.; and<br/>
<a id="pl.10.5"></a><var>10.5</var>(3) promptly notify the revisor of statutes in writing of the changes announced and <br/>
<a id="pl.10.6"></a><var>10.6</var>published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish <br/>
<a id="pl.10.7"></a><var>10.7</var>the changes in the next edition of Minnesota Statutes.<br/>
<a id="pl.10.8"></a><var>10.8</var>(m) A person does not violate this chapter with respect to a transaction otherwise <br/>
<a id="pl.10.9"></a><var>10.9</var>complying with this chapter if that person relies on dollar amounts either determined <br/>
<a id="pl.10.10"></a><var>10.10</var>according to paragraph (j), clause (2), or appearing in the last publication of the <br/>
<a id="pl.10.11"></a><var>10.11</var>commissioner announcing the then current dollar amounts.<br/>
<a id="pl.10.12"></a><var>10.12</var>(n) The adjustments provided in this section shall not be affected unless explicitly <br/>
<a id="pl.10.13"></a><var>10.13</var>provided otherwise by law.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.10.14"></a><var>10.14</var>    Sec. 2. Minnesota Statutes 2012, section 47.59, subdivision 6, is amended to read:<br/>
<a id="pl.10.15"></a><var>10.15</var>    Subd. 6. <b>Additional charges.</b> (a) For purposes of this subdivision, "financial <br/>
<a id="pl.10.16"></a><var>10.16</var>institution" includes a person described in subdivision 4, paragraph (a). In addition to the <br/>
<a id="pl.10.17"></a><var>10.17</var>finance charges permitted by this section, a financial institution may contract for and <br/>
<a id="pl.10.18"></a><var>10.18</var>receive the following additional charges that may be included in the principal amount <br/>
<a id="pl.10.19"></a><var>10.19</var>of the loan or credit sale unpaid balances:<br/>
<a id="pl.10.20"></a><var>10.20</var>(1) official fees and taxes;<br/>
<a id="pl.10.21"></a><var>10.21</var>(2) charges for insurance as described in paragraph (b);<br/>
<a id="pl.10.22"></a><var>10.22</var>(3) with respect to a loan or credit sale contract secured by real estate, the following <br/>
<a id="pl.10.23"></a><var>10.23</var>"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of <br/>
<a id="pl.10.24"></a><var>10.24</var>circumvention or evasion of this section:<br/>
<a id="pl.10.25"></a><var>10.25</var>(i) fees or premiums for title examination, abstract of title, title insurance, surveys, <br/>
<a id="pl.10.26"></a><var>10.26</var>or similar purposes;<br/>
<a id="pl.10.27"></a><var>10.27</var>(ii) fees for preparation of a deed, mortgage, settlement statement, or other <br/>
<a id="pl.10.28"></a><var>10.28</var>documents, if not paid to the financial institution;<br/>
<a id="pl.10.29"></a><var>10.29</var>(iii) escrows for future payments of taxes, including assessments for improvements, <br/>
<a id="pl.10.30"></a><var>10.30</var>insurance, and water, sewer, and land rents;<br/>
<a id="pl.10.31"></a><var>10.31</var>(iv) fees for notarizing deeds and other documents;<br/>
<a id="pl.10.32"></a><var>10.32</var>(v) appraisal and credit report fees; and<br/>
<a id="pl.10.33"></a><var>10.33</var>(vi) fees for determining whether any portion of the property is located in a flood <br/>
<a id="pl.10.34"></a><var>10.34</var>zone and fees for ongoing monitoring of the property to determine changes, if any, <br/>
<a id="pl.10.35"></a><var>10.35</var>in flood zone status;<br/>
<a id="pl.11.1"></a><var>11.1</var>(4) a delinquency charge on a payment, including the minimum payment due in <br/>
<a id="pl.11.2"></a><var>11.2</var>connection with open-end credit, not paid in full on or before the tenth day after its due <br/>
<a id="pl.11.3"></a><var>11.3</var>date in an amount not to exceed five percent of the amount of the payment or $5.20 $7.80, <br/>
<a id="pl.11.4"></a><var>11.4</var>whichever is greater;<br/>
<a id="pl.11.5"></a><var>11.5</var>(5) for a returned check or returned automatic payment withdrawal request, an <br/>
<a id="pl.11.6"></a><var>11.6</var>amount not in excess of the service charge limitation in section 
         <statute_ref>604.113</statute_ref>, except that, on <br/>
<a id="pl.11.7"></a><var>11.7</var>a loan transaction that is a consumer small loan as defined in section 
         <statute_ref>47.60</statute_ref>
<statute_ref>, subdivision <br/>
<a id="pl.11.8"></a><var>11.8</var>1
         </statute_ref>, paragraph (a), in which cash is advanced in exchange for a personal check, the civil <br/>
<a id="pl.11.9"></a><var>11.9</var>penalty provisions of section 
         <statute_ref>604.113</statute_ref>
<statute_ref>, subdivision 2</statute_ref>, paragraph (b), may not be demanded <br/>
<a id="pl.11.10"></a><var>11.10</var>or assessed against the borrower; and <br/>
<a id="pl.11.11"></a><var>11.11</var>(6) charges for other benefits, including insurance, conferred on the borrower that <br/>
<a id="pl.11.12"></a><var>11.12</var>are of a type that is not for credit.<br/>
<a id="pl.11.13"></a><var>11.13</var>(b) An additional charge may be made for insurance written in connection with the <br/>
<a id="pl.11.14"></a><var>11.14</var>loan or credit sale contract, which may be included in the principal amount of the loan or <br/>
<a id="pl.11.15"></a><var>11.15</var>credit sale unpaid balances:<br/>
<a id="pl.11.16"></a><var>11.16</var>(1) with respect to insurance against loss of or damage to property, or against <br/>
<a id="pl.11.17"></a><var>11.17</var>liability arising out of the ownership or use of property, if the financial institution furnishes <br/>
<a id="pl.11.18"></a><var>11.18</var>a clear, conspicuous, and specific statement in writing to the borrower setting forth the <br/>
<a id="pl.11.19"></a><var>11.19</var>cost of the insurance if obtained from or through the financial institution and stating that <br/>
<a id="pl.11.20"></a><var>11.20</var>the borrower may choose the person through whom the insurance is to be obtained;<br/>
<a id="pl.11.21"></a><var>11.21</var>(2) with respect to credit insurance or mortgage insurance providing life, accident, <br/>
<a id="pl.11.22"></a><var>11.22</var>health, or unemployment coverage, if the insurance coverage is not required by the <br/>
<a id="pl.11.23"></a><var>11.23</var>financial institution, and this fact is clearly and conspicuously disclosed in writing to <br/>
<a id="pl.11.24"></a><var>11.24</var>the borrower, and the borrower gives specific, dated, and separately signed affirmative <br/>
<a id="pl.11.25"></a><var>11.25</var>written indication of the borrower's desire to do so after written disclosure to the borrower <br/>
<a id="pl.11.26"></a><var>11.26</var>of the cost of the insurance; and<br/>
<a id="pl.11.27"></a><var>11.27</var>(3) with respect to the vendor's single interest insurance, but only (i) to the extent <br/>
<a id="pl.11.28"></a><var>11.28</var>that the insurer has no right of subrogation against the borrower; and (ii) to the extent that <br/>
<a id="pl.11.29"></a><var>11.29</var>the insurance does not duplicate the coverage of other insurance under which loss is <br/>
<a id="pl.11.30"></a><var>11.30</var>payable to the financial institution as its interest may appear, against loss of or damage <br/>
<a id="pl.11.31"></a><var>11.31</var>to property for which a separate charge is made to the borrower according to clause (1); <br/>
<a id="pl.11.32"></a><var>11.32</var>and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the <br/>
<a id="pl.11.33"></a><var>11.33</var>financial institution to the borrower setting forth the cost of the insurance if obtained from <br/>
<a id="pl.11.34"></a><var>11.34</var>or through the financial institution and stating that the borrower may choose the person <br/>
<a id="pl.11.35"></a><var>11.35</var>through whom the insurance is to be obtained.<br/>
<a id="pl.12.1"></a><var>12.1</var>(c) In addition to the finance charges and other additional charges permitted by <br/>
<a id="pl.12.2"></a><var>12.2</var>this section, a financial institution may contract for and receive the following additional <br/>
<a id="pl.12.3"></a><var>12.3</var>charges in connection with open-end credit, which may be included in the principal <br/>
<a id="pl.12.4"></a><var>12.4</var>amount of the loan or balance upon which the finance charge is computed:<br/>
<a id="pl.12.5"></a><var>12.5</var>(1) annual charges, not to exceed $50 per annum, payable in advance, for the <br/>
<a id="pl.12.6"></a><var>12.6</var>privilege of opening and maintaining open-end credit;<br/>
<a id="pl.12.7"></a><var>12.7</var>(2) charges for the use of an automated teller machine;<br/>
<a id="pl.12.8"></a><var>12.8</var>(3) charges for any monthly or other periodic payment period in which the borrower <br/>
<a id="pl.12.9"></a><var>12.9</var>has exceeded or, except for the financial institution's dishonor would have exceeded, <br/>
<a id="pl.12.10"></a><var>12.10</var>the maximum approved credit limit, in an amount not in excess of the service charge <br/>
<a id="pl.12.11"></a><var>12.11</var>permitted in section 
         <statute_ref>604.113</statute_ref>; <br/>
<a id="pl.12.12"></a><var>12.12</var>(4) charges for obtaining a cash advance in an amount not to exceed the service <br/>
<a id="pl.12.13"></a><var>12.13</var>charge permitted in section 
         <statute_ref>604.113</statute_ref>; and <br/>
<a id="pl.12.14"></a><var>12.14</var>(5) charges for check and draft copies and for the replacement of lost or stolen <br/>
<a id="pl.12.15"></a><var>12.15</var>credit cards.<br/>
<a id="pl.12.16"></a><var>12.16</var>(d) In addition to the finance charges and other additional charges permitted by this <br/>
<a id="pl.12.17"></a><var>12.17</var>section, a financial institution may contract for and receive a onetime loan administrative <br/>
<a id="pl.12.18"></a><var>12.18</var>fee not exceeding $25 in connection with closed-end credit, which may be included <br/>
<a id="pl.12.19"></a><var>12.19</var>in the principal balance upon which the finance charge is computed. This paragraph <br/>
<a id="pl.12.20"></a><var>12.20</var>applies only to closed-end credit in an original principal amount of $4,320 $6,480 or less. <br/>
<a id="pl.12.21"></a><var>12.21</var>The determination of an original principal amount must exclude the administrative fee <br/>
<a id="pl.12.22"></a><var>12.22</var>contracted for and received according to this paragraph.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.12.23"></a><var>12.23</var>    Sec. 3. Minnesota Statutes 2012, section 56.12, is amended to read:<br/>
<a id="pl.12.24"></a><var>12.24</var><b>56.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.</b><br/>
<a id="pl.12.25"></a><var>12.25</var>No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause <br/>
<a id="pl.12.26"></a><var>12.26</var>or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any <br/>
<a id="pl.12.27"></a><var>12.27</var>manner any statement or representation with regard to the rates, terms, or conditions for <br/>
<a id="pl.12.28"></a><var>12.28</var>the lending of money, credit, goods, or things in action which is false, misleading, or <br/>
<a id="pl.12.29"></a><var>12.29</var>deceptive. The commissioner may order any licensee to desist from any conduct which <br/>
<a id="pl.12.30"></a><var>12.30</var>the commissioner shall find to be a violation of the foregoing provisions.<br/>
<a id="pl.12.31"></a><var>12.31</var>The commissioner may require that rates of charge, if stated by a licensee, be stated <br/>
<a id="pl.12.32"></a><var>12.32</var>fully and clearly in such manner as the commissioner may deem necessary to prevent <br/>
<a id="pl.12.33"></a><var>12.33</var>misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements <br/>
<a id="pl.12.34"></a><var>12.34</var>of this section and section 
         <statute_ref>56.14</statute_ref>, a licensee may give the disclosures required by the <br/>
<a id="pl.12.35"></a><var>12.35</var>federal Truth-in-Lending Act. <br/>
<a id="pl.13.1"></a><var>13.1</var>A licensee may take a lien upon real estate as security for any loan exceeding $4,320<br/>
<a id="pl.13.2"></a><var>13.2</var> $6,480 in principal amount made under this chapter. The provisions of sections 
         <statute_ref>47.20</statute_ref> and <br/>
<statute_ref><a id="pl.13.3"></a><var>13.3</var>47.21
         </statute_ref> do not apply to loans made under this chapter, except as provided in this section. No <br/>
<a id="pl.13.4"></a><var>13.4</var>loan secured by a first lien on a borrower's primary residence shall be made pursuant to <br/>
<a id="pl.13.5"></a><var>13.5</var>this section if the proceeds of the loan are used to finance the purchase of the borrower's <br/>
<a id="pl.13.6"></a><var>13.6</var>primary residence, unless: <br/>
<a id="pl.13.7"></a><var>13.7</var>(1) the proceeds of the loan are used to finance the purchase of a manufactured <br/>
<a id="pl.13.8"></a><var>13.8</var>home or a prefabricated building; or<br/>
<a id="pl.13.9"></a><var>13.9</var>(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed <br/>
<a id="pl.13.10"></a><var>13.10</var>on a contract for deed.<br/>
<a id="pl.13.11"></a><var>13.11</var>If the proceeds of the loan are used to finance the purchase of the borrower's <br/>
<a id="pl.13.12"></a><var>13.12</var>primary residence, the licensee shall consent to the subsequent transfer of the real estate <br/>
<a id="pl.13.13"></a><var>13.13</var>if the existing borrower continues after transfer to be obligated for repayment of the <br/>
<a id="pl.13.14"></a><var>13.14</var>entire remaining indebtedness. The licensee shall release the existing borrower from all <br/>
<a id="pl.13.15"></a><var>13.15</var>obligations under the loan instruments, if the transferee (1) meets the standards of credit <br/>
<a id="pl.13.16"></a><var>13.16</var>worthiness normally used by persons in the business of making loans, including but not <br/>
<a id="pl.13.17"></a><var>13.17</var>limited to the ability of the transferee to make the loan payments and satisfactorily maintain <br/>
<a id="pl.13.18"></a><var>13.18</var>the property used as collateral, and (2) executes an agreement in writing with the licensee <br/>
<a id="pl.13.19"></a><var>13.19</var>whereby the transferee assumes the obligations of the existing borrower under the loan <br/>
<a id="pl.13.20"></a><var>13.20</var>instruments. Any such agreement shall not affect the priority, validity or enforceability <br/>
<a id="pl.13.21"></a><var>13.21</var>of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one <br/>
<a id="pl.13.22"></a><var>13.22</var>percent of the remaining unpaid principal balance in the event the loan is assumed by <br/>
<a id="pl.13.23"></a><var>13.23</var>the transferee and the existing borrower continues after the transfer to be obligated for <br/>
<a id="pl.13.24"></a><var>13.24</var>repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess <br/>
<a id="pl.13.25"></a><var>13.25</var>of one percent of the remaining unpaid principal balance in the event the remaining <br/>
<a id="pl.13.26"></a><var>13.26</var>indebtedness is assumed by the transferee and the existing borrower is released from all <br/>
<a id="pl.13.27"></a><var>13.27</var>obligations under the loan instruments, but in no event shall the fee exceed $240 $360.<br/>
<a id="pl.13.28"></a><var>13.28</var>A licensee making a loan under this chapter secured by a lien on real estate shall <br/>
<a id="pl.13.29"></a><var>13.29</var>comply with the requirements of section 
         <statute_ref>47.20, subdivision 8</statute_ref>. <br/>
<a id="pl.13.30"></a><var>13.30</var>No licensee shall conduct the business of making loans under this chapter within any <br/>
<a id="pl.13.31"></a><var>13.31</var>office, room, or place of business in which any other business is solicited or engaged in, <br/>
<a id="pl.13.32"></a><var>13.32</var>or in association or conjunction therewith, if the commissioner finds that the character <br/>
<a id="pl.13.33"></a><var>13.33</var>of the other business is such that it would facilitate evasions of this chapter or of the <br/>
<a id="pl.13.34"></a><var>13.34</var>rules lawfully made hereunder. The commissioner may promulgate rules dealing with <br/>
<a id="pl.13.35"></a><var>13.35</var>such other businesses.<br/>
<a id="pl.14.1"></a><var>14.1</var>No licensee shall transact the business or make any loan provided for by this chapter <br/>
<a id="pl.14.2"></a><var>14.2</var>under any other name or at any other place of business than that named in the license. No <br/>
<a id="pl.14.3"></a><var>14.3</var>licensee shall take any confession of judgment or any power of attorney. No licensee shall <br/>
<a id="pl.14.4"></a><var>14.4</var>take any note or promise to pay that does not accurately disclose the principal amount <br/>
<a id="pl.14.5"></a><var>14.5</var>of the loan, the time for which it is made, and the agreed rate or amount of charge, nor <br/>
<a id="pl.14.6"></a><var>14.6</var>any instrument in which blanks are left to be filled in after execution. Nothing herein is <br/>
<a id="pl.14.7"></a><var>14.7</var>deemed to prohibit the making of loans by mail or arranging for settlement and closing <br/>
<a id="pl.14.8"></a><var>14.8</var>of real estate secured loans by an unrelated qualified closing agent at a location other <br/>
<a id="pl.14.9"></a><var>14.9</var>than the licensed location.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.14.10"></a><var>14.10</var>    Sec. 4. Minnesota Statutes 2012, section 56.125, subdivision 2, is amended to read:<br/>
<a id="pl.14.11"></a><var>14.11</var>    Subd. 2. <b>Real estate as security.</b> A licensee may take a lien upon real estate as <br/>
<a id="pl.14.12"></a><var>14.12</var>security for any open-end loan at or after such time as the outstanding balance first exceeds <br/>
<a id="pl.14.13"></a><var>14.13</var>$4,320 $6,480. A subsequent reduction in the balance below $4,320 $6,480 has no effect <br/>
<a id="pl.14.14"></a><var>14.14</var>on the lien. A licensee may retain the security interest until it terminates the open-end <br/>
<a id="pl.14.15"></a><var>14.15</var>account. If there is no outstanding balance in the account and there is no commitment by <br/>
<a id="pl.14.16"></a><var>14.16</var>the licensee to a line of credit in excess of $4,320 $6,480, the licensee shall, within 20 <br/>
<a id="pl.14.17"></a><var>14.17</var>days following written demand by the borrower, deliver to the borrower a release of the <br/>
<a id="pl.14.18"></a><var>14.18</var>mortgage on any real property taken as security for the open-end loan agreement. A real <br/>
<a id="pl.14.19"></a><var>14.19</var>estate mortgage authorized for a financial institution secures all advances and obligations <br/>
<a id="pl.14.20"></a><var>14.20</var>thereunder from the date of recording.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.14.21"></a><var>14.21</var>    Sec. 5. Minnesota Statutes 2012, section 56.131, subdivision 2, is amended to read:<br/>
<a id="pl.14.22"></a><var>14.22</var>    Subd. 2. <b>Additional charges.</b> In addition to the charges provided for by this section <br/>
<a id="pl.14.23"></a><var>14.23</var>and section 
         <statute_ref>56.155</statute_ref>, and notwithstanding section 
         <statute_ref>47.59, subdivision 6</statute_ref>, to the contrary, no <br/>
<a id="pl.14.24"></a><var>14.24</var>further or other amount whatsoever, shall be directly or indirectly charged, contracted for, <br/>
<a id="pl.14.25"></a><var>14.25</var>or received for the loan made, except actual out of pocket expenses of the licensee to <br/>
<a id="pl.14.26"></a><var>14.26</var>realize on a security after default, and except for the following additional charges which <br/>
<a id="pl.14.27"></a><var>14.27</var>may be included in the principal amount of the loan: <br/>
<a id="pl.14.28"></a><var>14.28</var>(a) lawful fees and taxes paid to any public officer to record, file, or release security;<br/>
<a id="pl.14.29"></a><var>14.29</var>(b) with respect to a loan secured by an interest in real estate, the following closing <br/>
<a id="pl.14.30"></a><var>14.30</var>costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention <br/>
<a id="pl.14.31"></a><var>14.31</var>or evasion of this section; provided the costs do not exceed one percent of the principal <br/>
<a id="pl.14.32"></a><var>14.32</var>amount or $400 $600, whichever is greater:<br/>
<a id="pl.14.33"></a><var>14.33</var>(1) fees or premiums for title examination, abstract of title, title insurance, surveys, <br/>
<a id="pl.14.34"></a><var>14.34</var>or similar purposes;<br/>
<a id="pl.15.1"></a><var>15.1</var>(2) fees, if not paid to the licensee, an employee of the licensee, or a person related <br/>
<a id="pl.15.2"></a><var>15.2</var>to the licensee, for preparation of a mortgage, settlement statement, or other documents, <br/>
<a id="pl.15.3"></a><var>15.3</var>fees for notarizing mortgages and other documents, and appraisal fees;<br/>
<a id="pl.15.4"></a><var>15.4</var>(c) the premium for insurance in lieu of perfecting and releasing a security interest to <br/>
<a id="pl.15.5"></a><var>15.5</var>the extent that the premium does not exceed the fees described in paragraph (a);<br/>
<a id="pl.15.6"></a><var>15.6</var>(d) discount points and appraisal fees may not be included in the principal amount of <br/>
<a id="pl.15.7"></a><var>15.7</var>a loan secured by an interest in real estate when the loan is a refinancing for the purpose of <br/>
<a id="pl.15.8"></a><var>15.8</var>bringing the refinanced loan current and is made within 24 months of the original date of <br/>
<a id="pl.15.9"></a><var>15.9</var>the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for <br/>
<a id="pl.15.10"></a><var>15.10</var>the purpose of bringing the refinanced loan current if new funds advanced to the customer, <br/>
<a id="pl.15.11"></a><var>15.11</var>not including closing costs or delinquent installments, exceed $1,000 $1,500; and<br/>
<a id="pl.15.12"></a><var>15.12</var>(e) the onetime loan administrative fee in section 
         <statute_ref>47.59, subdivision 6</statute_ref>, paragraph (d). <br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.15.13"></a><var>15.13</var>    Sec. 6. Minnesota Statutes 2012, section 56.131, subdivision 6, is amended to read:<br/>
<a id="pl.15.14"></a><var>15.14</var>    Subd. 6. <b>Discount points.</b> A loan made under this section that is secured by real <br/>
<a id="pl.15.15"></a><var>15.15</var>estate and that is in a principal amount of $12,000 $18,000 or more and has a maturity <br/>
<a id="pl.15.16"></a><var>15.16</var>of 60 months or more may contain a provision permitting discount points, if the loan <br/>
<a id="pl.15.17"></a><var>15.17</var>does not provide a loan yield in excess of the maximum rate of interest permitted by this <br/>
<a id="pl.15.18"></a><var>15.18</var>section. Loan yield means the annual rate of return obtained by a licensee computed as <br/>
<a id="pl.15.19"></a><var>15.19</var>the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid <br/>
<a id="pl.15.20"></a><var>15.20</var>in full, the licensee must make a refund to the borrower to the extent that the loan yield <br/>
<a id="pl.15.21"></a><var>15.21</var>will exceed the maximum rate of interest provided by this section when the prepayment is <br/>
<a id="pl.15.22"></a><var>15.22</var>taken into account. Discount points permitted by this subdivision and not collected but <br/>
<a id="pl.15.23"></a><var>15.23</var>included in the principal amount must not be included in the amount on which credit <br/>
<a id="pl.15.24"></a><var>15.24</var>insurance premiums are calculated and charged.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.15.25"></a><var>15.25</var>    Sec. 7. Minnesota Statutes 2012, section 325G.22, subdivision 1, is amended to read:<br/>
<a id="pl.15.26"></a><var>15.26</var>    Subdivision 1. <b>Personal liability of buyer limited.</b> If the seller or lender <br/>
<a id="pl.15.27"></a><var>15.27</var>repossesses or voluntarily accepts surrender of personal property in which the seller or <br/>
<a id="pl.15.28"></a><var>15.28</var>lender has a security interest arising out of a consumer credit transaction and the aggregate <br/>
<a id="pl.15.29"></a><var>15.29</var>amount of the credit extended in the transaction was $3,000 $6,900 or less, the buyer is not <br/>
<a id="pl.15.30"></a><var>15.30</var>personally liable to the seller or lender for the unpaid balance of the debt arising from the <br/>
<a id="pl.15.31"></a><var>15.31</var>consumer credit transaction, and the seller or lender is not obligated to resell the collateral.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.15.32"></a><var>15.32</var>    Sec. 8. Minnesota Statutes 2012, section 510.02, subdivision 1, is amended to read:<br/>
<a id="pl.16.1"></a><var>16.1</var>    Subdivision 1. <b>Exemption.</b> The homestead may include any quantity of land not <br/>
<a id="pl.16.2"></a><var>16.2</var>exceeding 160 acres. The exemption per homestead, whether the exemption is claimed <br/>
<a id="pl.16.3"></a><var>16.3</var>by one or more debtors, may not exceed $300,000 $390,000 or, if the homestead is used <br/>
<a id="pl.16.4"></a><var>16.4</var>primarily for agricultural purposes, $750,000 $975,000, exclusive of the limitations set <br/>
<a id="pl.16.5"></a><var>16.5</var>forth in section 
         <statute_ref>510.05</statute_ref>. <br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.16.6"></a><var>16.6</var>    Sec. 9. Minnesota Statutes 2012, section 550.37, subdivision 4, is amended to read:<br/>
<a id="pl.16.7"></a><var>16.7</var>    Subd. 4. <b>Personal goods.</b> (a) All wearing apparel, one watch, utensils, and <br/>
<a id="pl.16.8"></a><var>16.8</var>foodstuffs of the debtor and the debtor's family.<br/>
<a id="pl.16.9"></a><var>16.9</var>(b) Household furniture, household appliances, phonographs, radio and television <br/>
<a id="pl.16.10"></a><var>16.10</var>receivers of the debtor and the debtor's family, not exceeding $4,500 $10,350 in value.<br/>
<a id="pl.16.11"></a><var>16.11</var>(c) The debtor's aggregate interest, not exceeding $1,225 $2,817.50 in value, in <br/>
<a id="pl.16.12"></a><var>16.12</var>wedding rings or other religious or culturally recognized symbols of marriage exchanged <br/>
<a id="pl.16.13"></a><var>16.13</var>between the debtor and spouse at the time of the marriage and in the debtor's possession.<br/>
<a id="pl.16.14"></a><var>16.14</var>The exemption provided by this subdivision may not be waived except with regard <br/>
<a id="pl.16.15"></a><var>16.15</var>to purchase money security interests. Except for a pawnbroker's possessory lien, a <br/>
<a id="pl.16.16"></a><var>16.16</var>nonpurchase money security interest in the property exempt under this subdivision is void.<br/>
<a id="pl.16.17"></a><var>16.17</var>If a debtor has property of the type which would qualify for the exemption under <br/>
<a id="pl.16.18"></a><var>16.18</var>clause (b), of a value in excess of $4,500 $10,350 an itemized list of the exempt property, <br/>
<a id="pl.16.19"></a><var>16.19</var>together with the value of each item listed, shall be attached to the security agreement <br/>
<a id="pl.16.20"></a><var>16.20</var>at the time a security interest is taken, and a creditor may take a nonpurchase money <br/>
<a id="pl.16.21"></a><var>16.21</var>security interest in the excess over $4,500 $10,350 by requiring the debtor to select the <br/>
<a id="pl.16.22"></a><var>16.22</var>exemption in writing at the time the loan is made.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.16.23"></a><var>16.23</var>    Sec. 10. Minnesota Statutes 2012, section 550.37, subdivision 4a, is amended to read:<br/>
<a id="pl.16.24"></a><var>16.24</var>    Subd. 4a. <b>Adjustment of dollar amounts.</b> (a) Except for subdivisions 5 and 7, the <br/>
<a id="pl.16.25"></a><var>16.25</var>dollar amounts in this section shall change periodically as provided in this subdivision to <br/>
<a id="pl.16.26"></a><var>16.26</var>the extent of changes in the implicit price deflator for the gross national domestic product, <br/>
<a id="pl.16.27"></a><var>16.27</var>1972 2005 = 100, compiled by the United States Department of Commerce, and hereafter <br/>
<a id="pl.16.28"></a><var>16.28</var>referred to as the index. The index for December 1980 2011 is the reference base index.<br/>
<a id="pl.16.29"></a><var>16.29</var>(b) The designated dollar amounts shall change on July 1 of each even-numbered <br/>
<a id="pl.16.30"></a><var>16.30</var>year if the percentage of change, calculated to the nearest whole percentage point, between <br/>
<a id="pl.16.31"></a><var>16.31</var>the index for December of the preceding year and the reference base index is ten percent <br/>
<a id="pl.16.32"></a><var>16.32</var>or more. The portion of the percentage change in the index in excess of a multiple of ten <br/>
<a id="pl.16.33"></a><var>16.33</var>percent shall be disregarded and the dollar amounts shall change only in multiples of ten <br/>
<a id="pl.16.34"></a><var>16.34</var>percent of the amounts stated in this section.<br/>
<a id="pl.17.1"></a><var>17.1</var>(c) If the index is revised, the percentage of change pursuant to this section shall <br/>
<a id="pl.17.2"></a><var>17.2</var>be calculated on the basis of the revised index. If a revision of the index changes the <br/>
<a id="pl.17.3"></a><var>17.3</var>reference base index, a revised reference base index shall be determined by multiplying the <br/>
<a id="pl.17.4"></a><var>17.4</var>reference base index then applicable by the rebasing factor furnished by the Department <br/>
<a id="pl.17.5"></a><var>17.5</var>of Commerce. If the index is superseded, the index referred to in this section is the one <br/>
<a id="pl.17.6"></a><var>17.6</var>represented by the Department of Commerce as reflecting most accurately changes in the <br/>
<a id="pl.17.7"></a><var>17.7</var>purchasing power of the dollar for consumers.<br/>
<a id="pl.17.8"></a><var>17.8</var>(d) The commissioner of commerce shall announce and publish:<br/>
<a id="pl.17.9"></a><var>17.9</var>(1) announce and publish on or before April 30 of each year in which dollar amounts <br/>
<a id="pl.17.10"></a><var>17.10</var>are to change, the changes in dollar amounts required by paragraph (b); and<br/>
<a id="pl.17.11"></a><var>17.11</var>(2) announce and publish promptly after the changes occur, changes in the index <br/>
<a id="pl.17.12"></a><var>17.12</var>required by paragraph (c) including, if applicable, the numerical equivalent of the <br/>
<a id="pl.17.13"></a><var>17.13</var>reference base index under a revised reference base index and the designation or title <br/>
<a id="pl.17.14"></a><var>17.14</var>of any index superseding the index.; and<br/>
<a id="pl.17.15"></a><var>17.15</var>(3) promptly notify the revisor of statutes in writing of the changes announced and <br/>
<a id="pl.17.16"></a><var>17.16</var>published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish <br/>
<a id="pl.17.17"></a><var>17.17</var>the changes in the next edition of Minnesota Statutes.<br/>
<a id="pl.17.18"></a><var>17.18</var>(e) A person does not violate this chapter with respect to a transaction otherwise <br/>
<a id="pl.17.19"></a><var>17.19</var>complying with this chapter if the person relies on dollar amounts either determined <br/>
<a id="pl.17.20"></a><var>17.20</var>according to paragraph (b) or appearing in the last publication of the commissioner <br/>
<a id="pl.17.21"></a><var>17.21</var>announcing the then current dollar amounts.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.17.22"></a><var>17.22</var>    Sec. 11. Minnesota Statutes 2012, section 550.37, subdivision 6, is amended to read:<br/>
<a id="pl.17.23"></a><var>17.23</var>    Subd. 6. <b>Tools of trade.</b> The tools, implements, machines, instruments, office <br/>
<a id="pl.17.24"></a><var>17.24</var>furniture, stock in trade, and library reasonably necessary in the trade, business, or <br/>
<a id="pl.17.25"></a><var>17.25</var>profession of the debtor, not exceeding $5,000 $11,500 in value.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.17.26"></a><var>17.26</var>    Sec. 12. Minnesota Statutes 2012, section 550.37, subdivision 10, is amended to read:<br/>
<a id="pl.17.27"></a><var>17.27</var>    Subd. 10. <b>Insurance proceeds.</b> All money received by, or payable to, a surviving <br/>
<a id="pl.17.28"></a><var>17.28</var>spouse or child from insurance payable at the death of a spouse, or parent, not exceeding <br/>
<a id="pl.17.29"></a><var>17.29</var>$20,000 $46,000. The $20,000 $46,000 exemption provided by this subdivision shall be <br/>
<a id="pl.17.30"></a><var>17.30</var>increased by $5,000 $11,500 for each dependent of the surviving spouse or child.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.17.31"></a><var>17.31</var>    Sec. 13. Minnesota Statutes 2012, section 550.37, subdivision 12a, is amended to read:<br/>
<a id="pl.17.32"></a><var>17.32</var>    Subd. 12a. <b>Motor vehicles.</b> One motor vehicle to the extent of a value not <br/>
<a id="pl.17.33"></a><var>17.33</var>exceeding $2,000 $4,600; or one motor vehicle to the extent of a value not exceeding <br/>
<a id="pl.18.1"></a><var>18.1</var>$20,000 $46,000 that has been modified, at a cost of not less than $1,500 $3,450, to <br/>
<a id="pl.18.2"></a><var>18.2</var>accommodate the physical disability making a disabled person eligible for a certificate <br/>
<a id="pl.18.3"></a><var>18.3</var>authorized by section 
         <statute_ref>169.345</statute_ref>. <br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.18.4"></a><var>18.4</var>    Sec. 14. Minnesota Statutes 2012, section 550.37, subdivision 23, is amended to read:<br/>
<a id="pl.18.5"></a><var>18.5</var>    Subd. 23. <b>Life insurance aggregate interest.</b> The debtor's aggregate interest not to <br/>
<a id="pl.18.6"></a><var>18.6</var>exceed in value $4,000 $9,200 in any accrued dividend or interest under or loan value of <br/>
<a id="pl.18.7"></a><var>18.7</var>any unmatured life insurance contract owned by the debtor under which the insured is the <br/>
<a id="pl.18.8"></a><var>18.8</var>debtor or an individual of whom the debtor is a dependent.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.18.9"></a><var>18.9</var>    Sec. 15. Minnesota Statutes 2012, section 550.37, subdivision 24, is amended to read:<br/>
<a id="pl.18.10"></a><var>18.10</var>    Subd. 24. <b>Employee benefits.</b> (a) The debtor's right to receive present or future <br/>
<a id="pl.18.11"></a><var>18.11</var>payments, or payments received by the debtor, under a stock bonus, pension, profit <br/>
<a id="pl.18.12"></a><var>18.12</var>sharing, annuity, individual retirement account, Roth IRA, individual retirement annuity, <br/>
<a id="pl.18.13"></a><var>18.13</var>simplified employee pension, or similar plan or contract on account of illness, disability, <br/>
<a id="pl.18.14"></a><var>18.14</var>death, age, or length of service, to the extent of the debtor's aggregate interest under all <br/>
<a id="pl.18.15"></a><var>18.15</var>plans and contracts up to a present value of $30,000 $69,000 and additional amounts under <br/>
<a id="pl.18.16"></a><var>18.16</var>all the plans and contracts to the extent reasonably necessary for the support of the debtor <br/>
<a id="pl.18.17"></a><var>18.17</var>and any spouse or dependent of the debtor.<br/>
<a id="pl.18.18"></a><var>18.18</var>(b) The exemptions in paragraph (a) do not apply when the debt is owed under a <br/>
<a id="pl.18.19"></a><var>18.19</var>support order as defined in section 
         <statute_ref>518A.26, subdivision 21</statute_ref>. <br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.18.20"></a><var>18.20</var>    Sec. 16. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.18.21"></a><var>18.21</var>Sections 1 to 15 are effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.18.24"></a><var>18.24</var>    Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a <br/>
<a id="pl.18.25"></a><var>18.25</var>subdivision to read:<br/>
<a id="pl.18.26"></a><var>18.26</var>    Subd. 4. <b>Actuarial data.</b> Actuarial reports and related data of the Department of <br/>
<a id="pl.18.27"></a><var>18.27</var>Commerce are classified under section 60A.1296.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.18.28"></a><var>18.28</var>    Sec. 2. Minnesota Statutes 2012, section 45.0135, is amended to read:<br/>
<a id="pl.18.29"></a><var>18.29</var><b>45.0135 </b><b>DIVISION OF INSURANCE</b><b> COMMERCE</b><b> FRAUD </b><b>PREVENTION</b><br/>
<a id="pl.18.30"></a><var>18.30</var><b> BUREAU</b><b>.</b><br/>
<a id="pl.19.1"></a><var>19.1</var>    Subd. 2a. <b>Authorization.</b> The commissioner may appoint peace officers, as defined <br/>
<a id="pl.19.2"></a><var>19.2</var>in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, paragraph (c), and establish a law enforcement agency, as <br/>
<a id="pl.19.3"></a><var>19.3</var>defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, paragraph (f), known as the Division of Insurance<br/>
<a id="pl.19.4"></a><var>19.4</var> Commerce Fraud Prevention Bureau, to conduct investigations, and to make arrests under <br/>
<a id="pl.19.5"></a><var>19.5</var>sections 
         <statute_ref>629.30</statute_ref> and 
         <statute_ref>629.34</statute_ref>. The jurisdiction of the law enforcement agency is limited to <br/>
<a id="pl.19.6"></a><var>19.6</var>offenses related to insurance fraud.<br/>
<a id="pl.19.7"></a><var>19.7</var>    Subd. 2b. <b>Duties.</b> The Division of Insurance Commerce Fraud Prevention Bureau<br/>
<a id="pl.19.8"></a><var>19.8</var> shall:<br/>
<a id="pl.19.9"></a><var>19.9</var>(1) review notices and reports of insurance fraud submitted by authorized insurers, <br/>
<a id="pl.19.10"></a><var>19.10</var>their employees, and agents or producers;<br/>
<a id="pl.19.11"></a><var>19.11</var>(2) respond to notifications or complaints of suspected insurance fraud generated by <br/>
<a id="pl.19.12"></a><var>19.12</var>other law enforcement agencies, state or federal governmental units, or any other person;<br/>
<a id="pl.19.13"></a><var>19.13</var>(3) initiate inquiries and conduct investigations when the division bureau has reason <br/>
<a id="pl.19.14"></a><var>19.14</var>to believe that insurance fraud has been or is being committed; and<br/>
<a id="pl.19.15"></a><var>19.15</var>(4) report incidents of alleged insurance fraud disclosed by its investigations to <br/>
<a id="pl.19.16"></a><var>19.16</var>appropriate law enforcement agencies, including, but not limited to, the attorney general, <br/>
<a id="pl.19.17"></a><var>19.17</var>county attorneys, or any other appropriate law enforcement or regulatory agency, and shall <br/>
<a id="pl.19.18"></a><var>19.18</var>assemble evidence, prepare charges, and otherwise assist any law enforcement authority <br/>
<a id="pl.19.19"></a><var>19.19</var>having jurisdiction.<br/>
<a id="pl.19.20"></a><var>19.20</var>    Subd. 2c. <b>Arrests and investigations.</b> The initial processing of a person arrested <br/>
<a id="pl.19.21"></a><var>19.21</var>by the Division of Insurance Commerce Fraud Prevention Bureau for an offense within <br/>
<a id="pl.19.22"></a><var>19.22</var>its jurisdiction is the responsibility of the Division of Insurance Fraud Prevention bureau<br/>
<a id="pl.19.23"></a><var>19.23</var> unless otherwise directed by the law enforcement agency with primary jurisdiction. <br/>
<a id="pl.19.24"></a><var>19.24</var>Subsequent investigation shall be the responsibility of the Division of Insurance Fraud <br/>
<a id="pl.19.25"></a><var>19.25</var>Prevention bureau unless otherwise directed by the law enforcement agency with primary <br/>
<a id="pl.19.26"></a><var>19.26</var>jurisdiction. At the request of the primary jurisdiction, the Division of Insurance Fraud <br/>
<a id="pl.19.27"></a><var>19.27</var>Prevention bureau may assist in a subsequent investigation being carried out by the <br/>
<a id="pl.19.28"></a><var>19.28</var>primary jurisdiction.<br/>
<a id="pl.19.29"></a><var>19.29</var>    Subd. 2d. <b>Policy for notice of investigations.</b> The Division of Insurance Commerce<br/>
<a id="pl.19.30"></a><var>19.30</var> Fraud Prevention Bureau must develop a policy for notifying the law enforcement agency <br/>
<a id="pl.19.31"></a><var>19.31</var>with primary jurisdiction when it has initiated investigation of any person within the <br/>
<a id="pl.19.32"></a><var>19.32</var>jurisdiction of that agency.<br/>
<a id="pl.19.33"></a><var>19.33</var>    Subd. 2e. <b>Chief law enforcement officer.</b> The commissioner shall appoint a peace <br/>
<a id="pl.19.34"></a><var>19.34</var>officer employed full time to be the chief law enforcement officer and to be responsible <br/>
<a id="pl.19.35"></a><var>19.35</var>for the management of the Division of Insurance Commerce Fraud Prevention Bureau. <br/>
<a id="pl.19.36"></a><var>19.36</var>The chief law enforcement officer shall possess the necessary police and management <br/>
<a id="pl.20.1"></a><var>20.1</var>experience to manage a law enforcement agency. The chief law enforcement officer <br/>
<a id="pl.20.2"></a><var>20.2</var>may appoint, discipline, and discharge all employees of the Division of Insurance Fraud <br/>
<a id="pl.20.3"></a><var>20.3</var>Prevention bureau. All police managerial and supervisory personnel must be full-time <br/>
<a id="pl.20.4"></a><var>20.4</var>employees of the Division of Insurance Fraud Prevention bureau. Supervisory personnel <br/>
<a id="pl.20.5"></a><var>20.5</var>must be on duty and available any time peace officers of the Division of Insurance Fraud <br/>
<a id="pl.20.6"></a><var>20.6</var>Prevention bureau are on duty.<br/>
<a id="pl.20.7"></a><var>20.7</var>    Subd. 2f. <b>Compliance.</b> Except as otherwise provided in this section, the Division of <br/>
<a id="pl.20.8"></a><var>20.8</var>Insurance Fraud Prevention Commerce Fraud Bureau shall comply with all statutes and <br/>
<a id="pl.20.9"></a><var>20.9</var>administrative rules relating to the operation and management of a law enforcement agency.<br/>
<a id="pl.20.10"></a><var>20.10</var>    Subd. 3. <b>Evidence, documentation, and related materials.</b> If the division bureau<br/>
<a id="pl.20.11"></a><var>20.11</var> seeks evidence, documentation, and related materials pertinent to an investigation, and the <br/>
<a id="pl.20.12"></a><var>20.12</var>matter is located outside of this state, the division bureau may designate representatives, <br/>
<a id="pl.20.13"></a><var>20.13</var>including officials of the state where the matter is located, to secure the matter or inspect <br/>
<a id="pl.20.14"></a><var>20.14</var>the matter on its behalf.<br/>
<a id="pl.20.15"></a><var>20.15</var>    Subd. 4. <b>Confidentiality and immunity.</b> The provisions of chapter 13, including, <br/>
<a id="pl.20.16"></a><var>20.16</var>but not limited to, section 
         <statute_ref>13.82</statute_ref>, apply to the classification, disclosure, and collection of <br/>
<a id="pl.20.17"></a><var>20.17</var>data relating to the Division of Insurance Commerce Fraud Prevention Bureau.<br/>
<a id="pl.20.18"></a><var>20.18</var>    Subd. 5. <b>Annual report on activities and cost-effectiveness.</b> The Division of <br/>
<a id="pl.20.19"></a><var>20.19</var>Insurance Commerce Fraud Prevention Bureau shall maintain records and information <br/>
<a id="pl.20.20"></a><var>20.20</var>in order to produce an annual report of its activities as may be prescribed by the <br/>
<a id="pl.20.21"></a><var>20.21</var>commissioner of commerce. The commissioner shall report annually to the house of <br/>
<a id="pl.20.22"></a><var>20.22</var>representatives and senate standing committees with jurisdiction over insurance issues <br/>
<a id="pl.20.23"></a><var>20.23</var>as to the activities of the division bureau and the cost-effectiveness of the programs <br/>
<a id="pl.20.24"></a><var>20.24</var>established by the division bureau.<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 6. <b>Insurance fraud prevention account.</b> The insurance fraud prevention <br/>
<a id="pl.20.26"></a><var>20.26</var>account is created in the state treasury. Money received from assessments under subdivision <br/>
<a id="pl.20.27"></a><var>20.27</var>7 is deposited in the account. Money in this fund is appropriated to the commissioner of <br/>
<a id="pl.20.28"></a><var>20.28</var>commerce for the purposes specified in this section and sections 
         <statute_ref>60A.951</statute_ref> to 
         <statute_ref>60A.956</statute_ref>.<br/>
<a id="pl.20.29"></a><var>20.29</var>    Subd. 7. <b>Assessment.</b> Each insurer authorized to sell insurance in the state of <br/>
<a id="pl.20.30"></a><var>20.30</var>Minnesota, including surplus lines carriers, and having Minnesota earned premium the <br/>
<a id="pl.20.31"></a><var>20.31</var>previous calendar year shall remit an assessment to the commissioner for deposit in the <br/>
<a id="pl.20.32"></a><var>20.32</var>insurance fraud prevention account on or before June 1 of each year. The amount of the <br/>
<a id="pl.20.33"></a><var>20.33</var>assessment shall be based on the insurer's total assets and on the insurer's total written <br/>
<a id="pl.20.34"></a><var>20.34</var>Minnesota premium, for the preceding fiscal year, as reported pursuant to section 
         <statute_ref>60A.13</statute_ref>. <br/>
<a id="pl.20.35"></a><var>20.35</var>The assessment is calculated to be an amount up to the following:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="25"/>
<col width="15"/>
<col width="2.5"/>
<col width="5"/>
<tr>
<td><a id="pl.21.1"></a><var>21.1</var><br/>
</td>
<td></td>
<td align="center">Total Assets<br/>
</td>
<td align="right" colspan="3">Assessment<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.2"></a><var>21.2</var><br/>
</td>
<td></td>
<td>Less than $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.3"></a><var>21.3</var><br/>
</td>
<td></td>
<td>$100,000,000 to $1,000,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.4"></a><var>21.4</var><br/>
</td>
<td></td>
<td>Over $1,000,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.5"></a><var>21.5</var><br/>
</td>
<td></td>
<td align="center">Minnesota Written Premium<br/>
</td>
<td align="right" colspan="3">Assessment<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.6"></a><var>21.6</var><br/>
</td>
<td></td>
<td>Less than $10,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.7"></a><var>21.7</var><br/>
</td>
<td></td>
<td>$10,000,000 to $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.8"></a><var>21.8</var><br/>
</td>
<td></td>
<td>Over $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
</table><a id="pl.21.9"></a><var>21.9</var>For purposes of this subdivision, the following entities are not considered to be <br/>
<a id="pl.21.10"></a><var>21.10</var>insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or <br/>
<a id="pl.21.11"></a><var>21.11</var>township mutuals organized under chapter 67A.<br/>
<a id="pl.21.12"></a><var>21.12</var>    Subd. 8. <b>Investigations; health-related boards.</b> (a) The Division of Insurance<br/>
<a id="pl.21.13"></a><var>21.13</var> Commerce Fraud Prevention Bureau may consult with the appropriate health-related board <br/>
<a id="pl.21.14"></a><var>21.14</var>when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected <br/>
<a id="pl.21.15"></a><var>21.15</var>of insurance fraud.<br/>
<a id="pl.21.16"></a><var>21.16</var>(b) The division bureau shall, for any conviction involving or related to insurance, <br/>
<a id="pl.21.17"></a><var>21.17</var>send copies of all public data in its possession to the appropriate health-related licensing <br/>
<a id="pl.21.18"></a><var>21.18</var>board.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.21.19"></a><var>21.19</var>    Sec. 3. Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:<br/>
<a id="pl.21.20"></a><var>21.20</var>    Subd. 2. <b>Power to compel production of evidence.</b> For the purpose of any <br/>
<a id="pl.21.21"></a><var>21.21</var>investigation, hearing, proceeding, or inquiry related to the duties and responsibilities <br/>
<a id="pl.21.22"></a><var>21.22</var>entrusted to the commissioner, the commissioner or a designated representative may <br/>
<a id="pl.21.23"></a><var>21.23</var>administer oaths and affirmations, subpoena witnesses, compel their attendance, take <br/>
<a id="pl.21.24"></a><var>21.24</var>evidence, and require the production of books, papers, correspondence, memoranda, <br/>
<a id="pl.21.25"></a><var>21.25</var>agreements, or other documents or records that the commissioner considers relevant <br/>
<a id="pl.21.26"></a><var>21.26</var>or material to the inquiry.<br/>
<a id="pl.21.27"></a><var>21.27</var>A subpoena issued pursuant to this subdivision must state that the person to whom <br/>
<a id="pl.21.28"></a><var>21.28</var>the subpoena is directed may not disclose the fact that the subpoena was issued or the fact <br/>
<a id="pl.21.29"></a><var>21.29</var>that the requested records have been given to law enforcement personnel except:<br/>
<a id="pl.21.30"></a><var>21.30</var>(1) insofar as the disclosure is necessary to find and disclose the records; or<br/>
<a id="pl.21.31"></a><var>21.31</var>(2) pursuant to court order.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.21.32"></a><var>21.32</var>    Sec. 4. Minnesota Statutes 2012, section 45.307, is amended to read:<br/>
<a id="pl.21.33"></a><var>21.33</var><b>45.307 EDUCATION PROVIDER.</b><br/>
<a id="pl.21.34"></a><var>21.34</var>    Subdivision 1. <b>Duty to make records and data available to commissioner.</b> A <br/>
<a id="pl.21.35"></a><var>21.35</var>person applying for approval as an education provider must make available upon request <br/>
<a id="pl.22.1"></a><var>22.1</var>such records and data required by the commissioner to administer the provisions and <br/>
<a id="pl.22.2"></a><var>22.2</var>further the purposes of this chapter.<br/>
<a id="pl.22.3"></a><var>22.3</var>    Subd. 2. <b>Responsibility for actions of coordinators and instructors.</b> An <br/>
<a id="pl.22.4"></a><var>22.4</var>education provider is responsible for any actions taken by one or more of its coordinators <br/>
<a id="pl.22.5"></a><var>22.5</var>or instructors in the course of performing activities associated with license education <br/>
<a id="pl.22.6"></a><var>22.6</var>courses provided under this chapter.<br/>
<a id="pl.22.7"></a><var>22.7</var>    Subd. 3. <b>Responsibility for approval of coordinator.</b> An education provider <br/>
<a id="pl.22.8"></a><var>22.8</var>must ensure that an individual acting as a coordinator on its behalf under this chapter has <br/>
<a id="pl.22.9"></a><var>22.9</var>received prior approval from the commissioner to act as a coordinator.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.22.10"></a><var>22.10</var>    Sec. 5. Minnesota Statutes 2012, section 45.43, is amended to read:<br/>
<a id="pl.22.11"></a><var>22.11</var><b>45.43 REPORTING REQUIREMENTS.</b><br/>
<a id="pl.22.12"></a><var>22.12</var>    Subdivision 1. <b>Course completions.</b> Required education must be reported in a <br/>
<a id="pl.22.13"></a><var>22.13</var>manner prescribed by the commissioner within ten days of the course completion.<br/>
<a id="pl.22.14"></a><var>22.14</var>    Subd. 2. <b>Violations and penalties.</b> (a) Each failure to report an individual licensee's <br/>
<a id="pl.22.15"></a><var>22.15</var>course completion in the manner prescribed by subdivision 1 constitutes a separate <br/>
<a id="pl.22.16"></a><var>22.16</var>violation.<br/>
<a id="pl.22.17"></a><var>22.17</var>(b) The commissioner may impose a civil penalty not to exceed $500 per violation <br/>
<a id="pl.22.18"></a><var>22.18</var>upon an education provider that violates subdivision 1.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.22.19"></a><var>22.19</var>    Sec. 6. <b>[60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING </b><br/>
<a id="pl.22.20"></a><var>22.20</var><b>DOCUMENTATION.</b><br/>
<a id="pl.22.21"></a><var>22.21</var>    Subdivision 1. <b>Statement of actuarial opinion.</b> Every property and casualty <br/>
<a id="pl.22.22"></a><var>22.22</var>insurance company doing business in this state, unless otherwise exempted by the <br/>
<a id="pl.22.23"></a><var>22.23</var>domiciliary commissioner, shall annually submit the opinion of an appointed actuary <br/>
<a id="pl.22.24"></a><var>22.24</var>entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with <br/>
<a id="pl.22.25"></a><var>22.25</var>the appropriate National Association of Insurance Commissioners (NAIC) Property and <br/>
<a id="pl.22.26"></a><var>22.26</var>Casualty Annual Statement Instructions.<br/>
<a id="pl.22.27"></a><var>22.27</var>    Subd. 2. <b>Actuarial opinion summary.</b> (a) Every property and casualty insurance <br/>
<a id="pl.22.28"></a><var>22.28</var>company domiciled in this state that is required to submit a statement of actuarial opinion <br/>
<a id="pl.22.29"></a><var>22.29</var>shall annually submit an actuarial opinion summary, written by the company's appointed <br/>
<a id="pl.22.30"></a><var>22.30</var>actuary. This actuarial opinion summary must be filed in accordance with the appropriate <br/>
<a id="pl.22.31"></a><var>22.31</var>NAIC Property and Casualty Annual Statement Instructions and must be considered as a <br/>
<a id="pl.22.32"></a><var>22.32</var>document supporting the actuarial opinion required in subdivision 1.<br/>
<a id="pl.22.33"></a><var>22.33</var>(b) A company licensed but not domiciled in this state shall provide the actuarial <br/>
<a id="pl.22.34"></a><var>22.34</var>opinion summary upon request.<br/>
<a id="pl.23.1"></a><var>23.1</var>    Subd. 3. <b>Actuarial report and workpapers.</b> (a) An actuarial report and its <br/>
<a id="pl.23.2"></a><var>23.2</var>underlying workpapers as required by the appropriate NAIC Property and Casualty <br/>
<a id="pl.23.3"></a><var>23.3</var>Annual Statement Instructions must be prepared to support each actuarial opinion.<br/>
<a id="pl.23.4"></a><var>23.4</var>(b) If the insurance company fails to provide a supporting actuarial report and/or <br/>
<a id="pl.23.5"></a><var>23.5</var>workpapers at the request of the commissioner or the commissioner determines that <br/>
<a id="pl.23.6"></a><var>23.6</var>the supporting actuarial report or workpapers provided by the insurance company are <br/>
<a id="pl.23.7"></a><var>23.7</var>otherwise unacceptable to the commissioner, the commissioner may engage a qualified <br/>
<a id="pl.23.8"></a><var>23.8</var>actuary at the expense of the company to review the opinion and the basis for the opinion <br/>
<a id="pl.23.9"></a><var>23.9</var>and prepare the supporting actuarial report or workpapers.<br/>
<a id="pl.23.10"></a><var>23.10</var>    Subd. 4. <b>Liability.</b> The appointed actuary shall not be liable for damages to any <br/>
<a id="pl.23.11"></a><var>23.11</var>person, other than the insurance company and the commissioner, for any act, error, <br/>
<a id="pl.23.12"></a><var>23.12</var>omission, decision, or conduct with respect to the actuary's opinion, except in cases of <br/>
<a id="pl.23.13"></a><var>23.13</var>fraud or willful misconduct on the part of the appointed actuary.<br/>
<a id="pl.23.14"></a><var>23.14</var><b>EFFECTIVE DATE.</b>This section is effective December 31, 2013.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.23.15"></a><var>23.15</var>    Sec. 7. <b>[60A.1296] CONFIDENTIALITY.</b><br/>
<a id="pl.23.16"></a><var>23.16</var>    Subdivision 1. <b>Actuarial opinion; public document.</b> The statement of actuarial <br/>
<a id="pl.23.17"></a><var>23.17</var>opinion must be provided with the annual statement in accordance with the appropriate <br/>
<a id="pl.23.18"></a><var>23.18</var>National Association of Insurance Commissioners (NAIC) Property and Casualty Annual <br/>
<a id="pl.23.19"></a><var>23.19</var>Statement Instructions and must be treated as a public document.<br/>
<a id="pl.23.20"></a><var>23.20</var>    Subd. 2. <b>Supporting materials; confidential and privileged.</b> (a) Documents, <br/>
<a id="pl.23.21"></a><var>23.21</var>materials, or other information in the possession or control of the Department of <br/>
<a id="pl.23.22"></a><var>23.22</var>Commerce that are considered an actuarial report, workpapers, or actuarial opinion <br/>
<a id="pl.23.23"></a><var>23.23</var>summary provided in support of the opinion, and any other material provided by the <br/>
<a id="pl.23.24"></a><var>23.24</var>company to the commissioner in connection with the actuarial report, workpapers, or <br/>
<a id="pl.23.25"></a><var>23.25</var>actuarial opinion summary, are confidential data on individuals or protected nonpublic <br/>
<a id="pl.23.26"></a><var>23.26</var>data as defined in section 13.02, shall not be subject to subpoena, and shall not be subject <br/>
<a id="pl.23.27"></a><var>23.27</var>to discovery or admissible in evidence in any private civil action.<br/>
<a id="pl.23.28"></a><var>23.28</var>(b) This provision shall not be construed to limit the commissioner's authority to:<br/>
<a id="pl.23.29"></a><var>23.29</var>(1) release the documents to the Actuarial Board for Counseling and Discipline <br/>
<a id="pl.23.30"></a><var>23.30</var>(ABCD) so long as the material is required for the purpose of professional disciplinary <br/>
<a id="pl.23.31"></a><var>23.31</var>proceedings and the ABCD establishes procedures satisfactory to the commissioner for <br/>
<a id="pl.23.32"></a><var>23.32</var>preserving the confidentiality of the documents; or<br/>
<a id="pl.23.33"></a><var>23.33</var>(2) use the documents, materials, or other information in furtherance of any <br/>
<a id="pl.23.34"></a><var>23.34</var>regulatory or legal action brought as part of the commissioner's official duties.<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 3. <b>Protections.</b> Neither the commissioner nor any person who received <br/>
<a id="pl.24.2"></a><var>24.2</var>the documents, materials, or other information while acting under the authority of <br/>
<a id="pl.24.3"></a><var>24.3</var>the commissioner shall be permitted or required to testify in any private civil action <br/>
<a id="pl.24.4"></a><var>24.4</var>concerning any confidential documents, materials, or information subject to subdivision 2.<br/>
<a id="pl.24.5"></a><var>24.5</var>    Subd. 4. <b>Exceptions.</b> In order to assist in the performance of the commissioner's <br/>
<a id="pl.24.6"></a><var>24.6</var>duties, the commissioner:<br/>
<a id="pl.24.7"></a><var>24.7</var>(1) may share documents, materials, or other information, including the confidential <br/>
<a id="pl.24.8"></a><var>24.8</var>and privileged documents, materials, or information subject to subdivision 2 with other <br/>
<a id="pl.24.9"></a><var>24.9</var>state, federal, and international regulatory agencies; with the NAIC and its affiliates <br/>
<a id="pl.24.10"></a><var>24.10</var>and subsidiaries; and with state, federal, and international law enforcement authorities, <br/>
<a id="pl.24.11"></a><var>24.11</var>provided that the recipient agrees to maintain the confidentiality and privileged status <br/>
<a id="pl.24.12"></a><var>24.12</var>of the document, material, or other information and has the legal authority to maintain <br/>
<a id="pl.24.13"></a><var>24.13</var>confidentiality;<br/>
<a id="pl.24.14"></a><var>24.14</var>(2) may receive documents, materials, or information, including otherwise <br/>
<a id="pl.24.15"></a><var>24.15</var>confidential and privileged documents, materials, or information, from NAIC and its <br/>
<a id="pl.24.16"></a><var>24.16</var>affiliates and subsidiaries, and from regulatory and law enforcement officials of other <br/>
<a id="pl.24.17"></a><var>24.17</var>foreign or domestic jurisdictions, and shall maintain as confidential or privileged any <br/>
<a id="pl.24.18"></a><var>24.18</var>document, material, or information received with notice or the understanding that it is <br/>
<a id="pl.24.19"></a><var>24.19</var>confidential or privileged under the laws of the jurisdiction that is the source of the <br/>
<a id="pl.24.20"></a><var>24.20</var>document, material, or information; and<br/>
<a id="pl.24.21"></a><var>24.21</var>(3) may enter into agreements governing sharing and use of information consistent <br/>
<a id="pl.24.22"></a><var>24.22</var>with subdivisions 2 to 4.<br/>
<a id="pl.24.23"></a><var>24.23</var>    Subd. 5. <b>Nonwaiver.</b> No waiver of applicable privilege or claim of confidentiality <br/>
<a id="pl.24.24"></a><var>24.24</var>in the documents, materials, or information shall occur as a result of disclosure to the <br/>
<a id="pl.24.25"></a><var>24.25</var>commissioner under this section or as a result of sharing as authorized in subdivision 4.<br/>
<a id="pl.24.26"></a><var>24.26</var><b>EFFECTIVE DATE.</b>This section is effective December 31, 2013.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.24.27"></a><var>24.27</var>    Sec. 8. Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:<br/>
<a id="pl.24.28"></a><var>24.28</var>    Subdivision 1. <b>Definition.</b> "Company action level event" means any of the <br/>
<a id="pl.24.29"></a><var>24.29</var>following events:<br/>
<a id="pl.24.30"></a><var>24.30</var>(1) the filing of a risk-based capital report by an insurer which indicates that:<br/>
<a id="pl.24.31"></a><var>24.31</var>(i) the insurer's total adjusted capital is greater than or equal to its regulatory action <br/>
<a id="pl.24.32"></a><var>24.32</var>level risk-based capital but less than its company action level risk-based capital; or<br/>
<a id="pl.24.33"></a><var>24.33</var>(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater <br/>
<a id="pl.24.34"></a><var>24.34</var>than or equal to its company action level risk-based capital but less than the product of its <br/>
<a id="pl.24.35"></a><var>24.35</var>authorized control level risk-based capital and 2.5 3.0 and has a negative trend; or<br/>
<a id="pl.25.1"></a><var>25.1</var>(iii) if a property and casualty insurer, the insurer has total adjusted capital which <br/>
<a id="pl.25.2"></a><var>25.2</var>is greater than or equal to its company action level risk-based capital but less than the <br/>
<a id="pl.25.3"></a><var>25.3</var>product of its authorized control level risk-based capital and 3.0 and triggers the trend <br/>
<a id="pl.25.4"></a><var>25.4</var>test determined in accordance with the trend test calculation included in the property <br/>
<a id="pl.25.5"></a><var>25.5</var>and casualty risk-based capital instructions;<br/>
<a id="pl.25.6"></a><var>25.6</var>(2) the notification by the commissioner to the insurer of an adjusted risk-based <br/>
<a id="pl.25.7"></a><var>25.7</var>capital report that indicates an event in clause (1), provided the insurer does not challenge <br/>
<a id="pl.25.8"></a><var>25.8</var>the adjusted risk-based report under section 
         <statute_ref>60A.66</statute_ref>; or<br/>
<a id="pl.25.9"></a><var>25.9</var>(3) if, pursuant to section 
         <statute_ref>60A.66</statute_ref>, an insurer challenges an adjusted risk-based <br/>
<a id="pl.25.10"></a><var>25.10</var>capital report that indicates the event in clause (1), the notification by the commissioner to <br/>
<a id="pl.25.11"></a><var>25.11</var>the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.<br/>
<a id="pl.25.12"></a><var>25.12</var><b>EFFECTIVE DATE.</b>This section is effective December 31, 2013.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.25.13"></a><var>25.13</var>    Sec. 9. Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision <br/>
<a id="pl.25.14"></a><var>25.14</var>to read:<br/>
<a id="pl.25.15"></a><var>25.15</var>    Subd. 2a. <b>Criminal history record check; fingerprints.</b> (a) An applicant for a <br/>
<a id="pl.25.16"></a><var>25.16</var>license must:<br/>
<a id="pl.25.17"></a><var>25.17</var>(1) consent to a criminal history record check;<br/>
<a id="pl.25.18"></a><var>25.18</var>(2) submit a fingerprint card in a form acceptable to the commissioner; and<br/>
<a id="pl.25.19"></a><var>25.19</var>(3) pay the fee required to perform criminal history record checks with the Minnesota <br/>
<a id="pl.25.20"></a><var>25.20</var>Bureau of Criminal Apprehension and the Federal Bureau of Investigation.<br/>
<a id="pl.25.21"></a><var>25.21</var>(b) The commissioner may contract for the collection and transmission of <br/>
<a id="pl.25.22"></a><var>25.22</var>fingerprints required under this chapter and may order the fee for collecting and <br/>
<a id="pl.25.23"></a><var>25.23</var>transmitting fingerprints to be payable directly to the contractor by the applicant. The <br/>
<a id="pl.25.24"></a><var>25.24</var>commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.<br/>
<a id="pl.25.25"></a><var>25.25</var>(c) The commissioner shall submit the applicant's fingerprints, consent, and <br/>
<a id="pl.25.26"></a><var>25.26</var>the required fee to the superintendent of the Bureau of Criminal Apprehension. The <br/>
<a id="pl.25.27"></a><var>25.27</var>superintendent shall perform a check of the state criminal history repository and is <br/>
<a id="pl.25.28"></a><var>25.28</var>authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation <br/>
<a id="pl.25.29"></a><var>25.29</var>to obtain the national criminal history record. The superintendent shall return the results <br/>
<a id="pl.25.30"></a><var>25.30</var>of the state and national criminal history records checks to the commissioner.<br/>
<a id="pl.25.31"></a><var>25.31</var>(d) This subdivision applies to an applicant for an initial license or a renewal license.<br/>
<a id="pl.25.32"></a><var>25.32</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015, and applies to <br/>
<a id="pl.25.33"></a><var>25.33</var>persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that <br/>
<a id="pl.25.34"></a><var>25.34</var>date who were not previously fingerprinted in compliance with the terms of this subdivision.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.26.1"></a><var>26.1</var>    Sec. 10. Minnesota Statutes 2012, section 82B.094, is amended to read:<br/>
<a id="pl.26.2"></a><var>26.2</var><b>82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.</b><br/>
<a id="pl.26.3"></a><var>26.3</var>(a) A certified residential real property appraiser or a certified general real property <br/>
<a id="pl.26.4"></a><var>26.4</var>appraiser, in good standing, may engage a trainee real property appraiser to assist in the <br/>
<a id="pl.26.5"></a><var>26.5</var>performance of real estate appraisals, provided that the certified residential real property <br/>
<a id="pl.26.6"></a><var>26.6</var>appraiser or a certified general real property appraiser:<br/>
<a id="pl.26.7"></a><var>26.7</var>(1) has been licensed in good standing as either a certified residential real property <br/>
<a id="pl.26.8"></a><var>26.8</var>appraiser or a certified general real property appraiser for a total of at least three years;<br/>
<a id="pl.26.9"></a><var>26.9</var>(2) has completed a course that is specifically oriented to the requirements and <br/>
<a id="pl.26.10"></a><var>26.10</var>responsibilities of supervisory appraisers and trainee appraisers;<br/>
<a id="pl.26.11"></a><var>26.11</var>(3) has not been the subject of any license or certificate suspension or revocation or <br/>
<a id="pl.26.12"></a><var>26.12</var>has not been prohibited from supervising activities in this state or any other state within <br/>
<a id="pl.26.13"></a><var>26.13</var>the previous two years;<br/>
<a id="pl.26.14"></a><var>26.14</var>(2) (4) has no more than three trainee real property appraisers working under <br/>
<a id="pl.26.15"></a><var>26.15</var>supervision at any one time;<br/>
<a id="pl.26.16"></a><var>26.16</var>(3) (5) actively and personally supervises the trainee real property appraiser, which <br/>
<a id="pl.26.17"></a><var>26.17</var>includes ensuring that research of general and specific data has been adequately conducted <br/>
<a id="pl.26.18"></a><var>26.18</var>and properly reported, application of appraisal principles and methodologies has been <br/>
<a id="pl.26.19"></a><var>26.19</var>properly applied, that the analysis is sound and adequately reported, and that any analyses, <br/>
<a id="pl.26.20"></a><var>26.20</var>opinions, or conclusions are adequately developed and reported so that the appraisal <br/>
<a id="pl.26.21"></a><var>26.21</var>report is not misleading;<br/>
<a id="pl.26.22"></a><var>26.22</var>(4) (6) discusses with the trainee real property appraiser any necessary and <br/>
<a id="pl.26.23"></a><var>26.23</var>appropriate changes that are made to a report, involving any trainee appraiser, before it is <br/>
<a id="pl.26.24"></a><var>26.24</var>transmitted to the client. Changes not discussed with the trainee real property appraiser <br/>
<a id="pl.26.25"></a><var>26.25</var>that are made by the supervising appraiser must be provided in writing to the trainee real <br/>
<a id="pl.26.26"></a><var>26.26</var>property appraiser upon completion of the appraisal report;<br/>
<a id="pl.26.27"></a><var>26.27</var>(5) (7) accompanies the trainee real property appraiser on the inspections of the <br/>
<a id="pl.26.28"></a><var>26.28</var>subject properties and drive-by inspections of the comparable sales on all appraisal <br/>
<a id="pl.26.29"></a><var>26.29</var>assignments for which the trainee will perform work until the trainee appraiser is <br/>
<a id="pl.26.30"></a><var>26.30</var>determined to be competent, in accordance with the competency rule of USPAP for the <br/>
<a id="pl.26.31"></a><var>26.31</var>property type;<br/>
<a id="pl.26.32"></a><var>26.32</var>(6) (8) accepts full responsibility for the appraisal report by signing and certifying <br/>
<a id="pl.26.33"></a><var>26.33</var>that the report complies with USPAP; and<br/>
<a id="pl.26.34"></a><var>26.34</var>(7) (9) reviews and signs the trainee real property appraiser's appraisal report or <br/>
<a id="pl.26.35"></a><var>26.35</var>reports or if the trainee appraiser is not signing the report, states in the appraisal the name <br/>
<a id="pl.26.36"></a><var>26.36</var>of the trainee and scope of the trainee's significant contribution to the report.<br/>
<a id="pl.27.1"></a><var>27.1</var>(b) The supervising appraiser must review and sign the applicable experience log <br/>
<a id="pl.27.2"></a><var>27.2</var>required to be kept by the trainee real property appraiser.<br/>
<a id="pl.27.3"></a><var>27.3</var>(c) The supervising appraiser must notify the commissioner within ten days when <br/>
<a id="pl.27.4"></a><var>27.4</var>the supervision of a trainee real property appraiser has terminated or when the trainee <br/>
<a id="pl.27.5"></a><var>27.5</var>appraiser is no longer under the supervision of the supervising appraiser.<br/>
<a id="pl.27.6"></a><var>27.6</var>(d) The supervising appraiser must maintain a separate work file for each appraisal <br/>
<a id="pl.27.7"></a><var>27.7</var>assignment.<br/>
<a id="pl.27.8"></a><var>27.8</var>(e) The supervising appraiser must verify that any trainee real property appraiser that <br/>
<a id="pl.27.9"></a><var>27.9</var>is subject to supervision is properly licensed and in good standing with the commissioner.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.27.10"></a><var>27.10</var>    Sec. 11. Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:<br/>
<a id="pl.27.11"></a><var>27.11</var>    Subd. 2. <b>Components on or after January 1, 2009</b><b> Conformance to Appraiser </b><br/>
<a id="pl.27.12"></a><var>27.12</var><b>Qualifications Board criteria</b><b>.</b> (a) On or after January 1, 2009, an applicant for a class <br/>
<a id="pl.27.13"></a><var>27.13</var>of license must document that the applicant has met the education, experience, and <br/>
<a id="pl.27.14"></a><var>27.14</var>examination components in effect after January 1, 2008.<br/>
<a id="pl.27.15"></a><var>27.15</var>(b) Qualifications for all levels of licensing must conform to the Real Property <br/>
<a id="pl.27.16"></a><var>27.16</var>Qualification Criteria established by the Appraisal Qualifications Board for implementation <br/>
<a id="pl.27.17"></a><var>27.17</var>effective January 1, 2008 2015.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.27.18"></a><var>27.18</var>    Sec. 12. Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:<br/>
<a id="pl.27.19"></a><var>27.19</var>    Subdivision 1. <b>Generally.</b> (a) An applicant for a license must pass an examination <br/>
<a id="pl.27.20"></a><var>27.20</var>conducted by the commissioner. The examinations must be of sufficient scope to establish <br/>
<a id="pl.27.21"></a><var>27.21</var>the competency of the applicant to act as a real estate appraiser and must conform <br/>
<a id="pl.27.22"></a><var>27.22</var>with the current National Uniform Exam Content Outlines published by the Appraiser <br/>
<a id="pl.27.23"></a><var>27.23</var>Qualifications Board.<br/>
<a id="pl.27.24"></a><var>27.24</var>(b) A passing grade for a real estate appraiser licensing examination must be the cut <br/>
<a id="pl.27.25"></a><var>27.25</var>score defined by the Appraiser Qualifications Board criteria.<br/>
<a id="pl.27.26"></a><var>27.26</var>(c) To qualify for a license as a trainee real property appraiser, an applicant must <br/>
<a id="pl.27.27"></a><var>27.27</var>pass a current trainee real property appraiser examination. The examination must test the <br/>
<a id="pl.27.28"></a><var>27.28</var>applicant's knowledge of appraisal terms, principles, theories, and ethics as provided <br/>
<a id="pl.27.29"></a><var>27.29</var>in this chapter.<br/>
<a id="pl.27.30"></a><var>27.30</var>(d) To qualify for a license as a licensed real property appraiser, an applicant must <br/>
<a id="pl.27.31"></a><var>27.31</var>pass a current uniform licensed real property appraiser examination approved by the <br/>
<a id="pl.27.32"></a><var>27.32</var>Appraiser Qualifications Board. The examination must test the applicant's knowledge of <br/>
<a id="pl.27.33"></a><var>27.33</var>appraisal terms, principles, theories, and ethics as provided in this chapter.<br/>
<a id="pl.28.1"></a><var>28.1</var>(e) To qualify for a license as a certified residential real property appraiser, an <br/>
<a id="pl.28.2"></a><var>28.2</var>applicant must pass a current uniform certified residential real property appraiser <br/>
<a id="pl.28.3"></a><var>28.3</var>examination approved by the Appraiser Qualifications Board. The examination must test <br/>
<a id="pl.28.4"></a><var>28.4</var>the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided <br/>
<a id="pl.28.5"></a><var>28.5</var>in this chapter.<br/>
<a id="pl.28.6"></a><var>28.6</var>(f) To qualify for a license as a certified general real property appraiser, an applicant <br/>
<a id="pl.28.7"></a><var>28.7</var>must pass a current uniform certified general real property appraiser examination approved <br/>
<a id="pl.28.8"></a><var>28.8</var>by the Appraiser Qualifications Board. The examination must test the applicant's <br/>
<a id="pl.28.9"></a><var>28.9</var>knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.<br/>
<a id="pl.28.10"></a><var>28.10</var>(g) An applicant must complete the applicable education prerequisites in section <br/>
<a id="pl.28.11"></a><var>28.11</var>82B.13 and the experience requirements in section 82B.14 before the applicant takes the <br/>
<a id="pl.28.12"></a><var>28.12</var>examination required under this section.<br/>
<a id="pl.28.13"></a><var>28.13</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015, and applies to an <br/>
<a id="pl.28.14"></a><var>28.14</var>applicant for a license on or after that date.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.28.15"></a><var>28.15</var>    Sec. 13. Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:<br/>
<a id="pl.28.16"></a><var>28.16</var>    Subdivision 1. <b>Trainee real property appraiser </b><b>or licensed real property </b><br/>
<a id="pl.28.17"></a><var>28.17</var><b>appraiser</b><b>.</b> (a) As a prerequisite for licensing as a trainee real property appraiser or <br/>
<a id="pl.28.18"></a><var>28.18</var>licensed real property appraiser, an applicant must present evidence satisfactory to the <br/>
<a id="pl.28.19"></a><var>28.19</var>commissioner that the person has successfully completed:<br/>
<a id="pl.28.20"></a><var>28.20</var>(1) at least 90 classroom 75 hours of prelicense courses approved by the <br/>
<a id="pl.28.21"></a><var>28.21</var>commissioner. The courses must consist Fifteen of the 75 hours must include successful <br/>
<a id="pl.28.22"></a><var>28.22</var>completion of general real estate appraisal principles and the 15-hour national USPAP <br/>
<a id="pl.28.23"></a><var>28.23</var>course; and<br/>
<a id="pl.28.24"></a><var>28.24</var>(2) in addition to the required hours under clause (1), a course that is specifically <br/>
<a id="pl.28.25"></a><var>28.25</var>oriented to the requirements and responsibilities of supervisory appraisers and trainee <br/>
<a id="pl.28.26"></a><var>28.26</var>appraisers.<br/>
<a id="pl.28.27"></a><var>28.27</var>(a) After January 1, 2008, a trainee real property appraiser applicant must present <br/>
<a id="pl.28.28"></a><var>28.28</var>evidence satisfactory to the commissioner that the person has successfully completed at <br/>
<a id="pl.28.29"></a><var>28.29</var>least 75 hours of prelicense courses approved by the commissioner.<br/>
<a id="pl.28.30"></a><var>28.30</var>(b) After January 1, 2008, a licensed real property appraiser applicant must present <br/>
<a id="pl.28.31"></a><var>28.31</var>evidence satisfactory to the commissioner that the person has successfully completed <br/>
<a id="pl.28.32"></a><var>28.32</var>at least 150 hours of prelicense courses approved by the commissioner All qualifying <br/>
<a id="pl.28.33"></a><var>28.33</var>education must be completed within the five-year period prior to the date of submission of <br/>
<a id="pl.28.34"></a><var>28.34</var>a trainee real property appraiser license application.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.29.1"></a><var>29.1</var>    Sec. 14. Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision <br/>
<a id="pl.29.2"></a><var>29.2</var>to read:<br/>
<a id="pl.29.3"></a><var>29.3</var>    Subd. 1a. <b>Licensed real property appraiser.</b> As a prerequisite for licensing as a <br/>
<a id="pl.29.4"></a><var>29.4</var>licensed real property appraiser, an applicant must present evidence satisfactory to the <br/>
<a id="pl.29.5"></a><var>29.5</var>commissioner that the person has successfully completed:<br/>
<a id="pl.29.6"></a><var>29.6</var>(1) at least 150 hours of prelicense courses approved by the commissioner. The <br/>
<a id="pl.29.7"></a><var>29.7</var>courses must consist of 75 hours of general real estate appraisal principles and the 15-hour <br/>
<a id="pl.29.8"></a><var>29.8</var>national USPAP course; and<br/>
<a id="pl.29.9"></a><var>29.9</var>(2) an associate degree or higher from an accredited college or university. In lieu of <br/>
<a id="pl.29.10"></a><var>29.10</var>the required degree, the applicant may present satisfactory documentation of successful <br/>
<a id="pl.29.11"></a><var>29.11</var>completion of 30 semester credit hours of instruction from an accredited college or <br/>
<a id="pl.29.12"></a><var>29.12</var>university.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.29.13"></a><var>29.13</var>    Sec. 15. Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:<br/>
<a id="pl.29.14"></a><var>29.14</var>    Subd. 4. <b>Certified residential real property appraiser.</b> As a prerequisite for <br/>
<a id="pl.29.15"></a><var>29.15</var>licensing as a certified residential real property appraiser, an applicant must present <br/>
<a id="pl.29.16"></a><var>29.16</var>evidence satisfactory to the commissioner that the person has successfully completed:<br/>
<a id="pl.29.17"></a><var>29.17</var>(1) at least 120 classroom 200 hours of prelicense courses approved by the <br/>
<a id="pl.29.18"></a><var>29.18</var>commissioner, with particular emphasis on the appraisal of one to four unit residential <br/>
<a id="pl.29.19"></a><var>29.19</var>properties. Fifteen of the 120 200 hours must include successful completion of the <br/>
<a id="pl.29.20"></a><var>29.20</var>15-hour national USPAP course.; and<br/>
<a id="pl.29.21"></a><var>29.21</var>After January 1, 2008, A certified residential real property appraiser applicant <br/>
<a id="pl.29.22"></a><var>29.22</var>must present evidence satisfactory to the commissioner that the person has successfully <br/>
<a id="pl.29.23"></a><var>29.23</var>completed:<br/>
<a id="pl.29.24"></a><var>29.24</var>(1) 200 hours of prelicense courses approved by the commissioner; and<br/>
<a id="pl.29.25"></a><var>29.25</var>(2) an associate a bachelor's degree or higher from an accredited college or <br/>
<a id="pl.29.26"></a><var>29.26</var>university. In lieu of the required degree the applicant may present satisfactory <br/>
<a id="pl.29.27"></a><var>29.27</var>documentation of completion of 21 semester credit hours from an accredited college or <br/>
<a id="pl.29.28"></a><var>29.28</var>university covering the following subject matter courses: English composition; principles <br/>
<a id="pl.29.29"></a><var>29.29</var>of economics (micro or macro); finance; algebra, geometry, or higher mathematics; <br/>
<a id="pl.29.30"></a><var>29.30</var>statistics; computer science; and business or real estate law. If an applicant has completed <br/>
<a id="pl.29.31"></a><var>29.31</var>education requirements before January 1, 2008, no college degree is required.<br/>
<a id="pl.29.32"></a><var>29.32</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015, and applies to an <br/>
<a id="pl.29.33"></a><var>29.33</var>applicant for a license on or after that date.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.29.34"></a><var>29.34</var>    Sec. 16. Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:<br/>
<a id="pl.30.1"></a><var>30.1</var>    Subd. 5. <b>Certified general real property appraiser.</b> As a prerequisite for <br/>
<a id="pl.30.2"></a><var>30.2</var>licensing as a certified general real property appraiser, an applicant must present evidence <br/>
<a id="pl.30.3"></a><var>30.3</var>satisfactory to the commissioner that the person has successfully completed:<br/>
<a id="pl.30.4"></a><var>30.4</var>(1) at least 180 classroom 300 hours of prelicense courses approved by the <br/>
<a id="pl.30.5"></a><var>30.5</var>commissioner, with particular emphasis on the appraisal of nonresidential properties. <br/>
<a id="pl.30.6"></a><var>30.6</var>Fifteen of the 180 300 hours must include successful completion of the 15-hour national <br/>
<a id="pl.30.7"></a><var>30.7</var>USPAP course.; and<br/>
<a id="pl.30.8"></a><var>30.8</var>After January 1, 2008, A certified general real property appraiser applicant must <br/>
<a id="pl.30.9"></a><var>30.9</var>present evidence satisfactory to the commissioner that the person has successfully <br/>
<a id="pl.30.10"></a><var>30.10</var>completed:<br/>
<a id="pl.30.11"></a><var>30.11</var>(1) 300 hours of prelicense courses approved by the commissioner; and<br/>
<a id="pl.30.12"></a><var>30.12</var>(2) a bachelor's degree or higher from an accredited college or university. In lieu of <br/>
<a id="pl.30.13"></a><var>30.13</var>the required degree the applicant may present satisfactory documentation of completion of <br/>
<a id="pl.30.14"></a><var>30.14</var>30 semester credit hours from an accredited college or university covering the following <br/>
<a id="pl.30.15"></a><var>30.15</var>subject matters courses: English composition; micro economics; macro economics; <br/>
<a id="pl.30.16"></a><var>30.16</var>finance; algebra, geometry, or higher mathematics; statistics; computer science; business <br/>
<a id="pl.30.17"></a><var>30.17</var>or real estate law; and two elective courses in accounting, geography, ag-economics, <br/>
<a id="pl.30.18"></a><var>30.18</var>business management, or real estate. If an applicant has complete education requirements <br/>
<a id="pl.30.19"></a><var>30.19</var>before January 1, 2008, no college degree is required.<br/>
<a id="pl.30.20"></a><var>30.20</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015, and applies to an <br/>
<a id="pl.30.21"></a><var>30.21</var>applicant for a license on or after that date.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.30.22"></a><var>30.22</var>    Sec. 17. Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:<br/>
<a id="pl.30.23"></a><var>30.23</var>    Subd. 8. <b>Appraiser prelicense education.</b> (a) Credit toward the qualifying <br/>
<a id="pl.30.24"></a><var>30.24</var>education requirements of this section may also be obtained via the completion of a <br/>
<a id="pl.30.25"></a><var>30.25</var>degree in real estate from an accredited degree-granting college or university approved <br/>
<a id="pl.30.26"></a><var>30.26</var>by the Association to Advance Collegiate Schools of Business, or a regional or national <br/>
<a id="pl.30.27"></a><var>30.27</var>accreditation agency recognized by the United States Secretary of Education, provided <br/>
<a id="pl.30.28"></a><var>30.28</var>that the college or university has had its curriculum reviewed and approved by the <br/>
<a id="pl.30.29"></a><var>30.29</var>Appraiser Qualifications Board.<br/>
<a id="pl.30.30"></a><var>30.30</var>    (b) Notwithstanding section 
         <statute_ref>45.22</statute_ref>, a college or university real estate course may be <br/>
<a id="pl.30.31"></a><var>30.31</var>approved retroactively by the commissioner for appraiser prelicense education credit if:<br/>
<a id="pl.30.32"></a><var>30.32</var>    (1) the course was offered by a college or university physically located in Minnesota;<br/>
<a id="pl.30.33"></a><var>30.33</var>    (2) the college or university was an approved education provider at the time the <br/>
<a id="pl.30.34"></a><var>30.34</var>course was offered; and<br/>
<a id="pl.31.1"></a><var>31.1</var>    (3) the commissioner's approval is made to the same extent in terms of courses and <br/>
<a id="pl.31.2"></a><var>31.2</var>hours and with the same time limits as those specified by the Appraiser Qualifications <br/>
<a id="pl.31.3"></a><var>31.3</var>Board.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.31.4"></a><var>31.4</var>    Sec. 18. Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:<br/>
<a id="pl.31.5"></a><var>31.5</var>    Subd. 2. <b>Service of notice, order, or other document from commission.</b>  Service of <br/>
<a id="pl.31.6"></a><var>31.6</var>all notices, orders, and other documents by the commission may be made by mail, personal <br/>
<a id="pl.31.7"></a><var>31.7</var>delivery, or electronic service upon any person or firm, or upon the president, general <br/>
<a id="pl.31.8"></a><var>31.8</var>manager, or other proper executive officer of any corporation interested. If any party has <br/>
<a id="pl.31.9"></a><var>31.9</var>appeared by attorney, such service must be made upon the attorney. Notwithstanding <br/>
<a id="pl.31.10"></a><var>31.10</var>section 
         <statute_ref>14.62</statute_ref>, orders and decisions may be served by mail, by personal delivery, or by <br/>
<a id="pl.31.11"></a><var>31.11</var>electronic service. The commission may provide electronic service to any person who has <br/>
<a id="pl.31.12"></a><var>31.12</var>provided an electronic address to the commission for service purposes. For purposes of this <br/>
<a id="pl.31.13"></a><var>31.13</var>section, the term "person" includes a natural person or an organization, whether for profit <br/>
<a id="pl.31.14"></a><var>31.14</var>or not for profit. Regulated utilities and state agencies must provide an electronic address <br/>
<a id="pl.31.15"></a><var>31.15</var>for electronic service purposes and must accept electronic service as official service.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.31.16"></a><var>31.16</var>    Sec. 19. Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:<br/>
<a id="pl.31.17"></a><var>31.17</var>    Subd. 4. <b>Service by a party, participant, or other interested person.</b> When an <br/>
<a id="pl.31.18"></a><var>31.18</var>applicable statute or commission rule requires service of a filing or other document by a <br/>
<a id="pl.31.19"></a><var>31.19</var>party, participant, or other interested person upon persons on a service list maintained by the <br/>
<a id="pl.31.20"></a><var>31.20</var>commission, service may be made by personal delivery, mail, or electronic service, except <br/>
<a id="pl.31.21"></a><var>31.21</var>that electronic service may only be made upon persons on the official service list who have <br/>
<a id="pl.31.22"></a><var>31.22</var>previously agreed in writing to accept electronic service at an electronic address provided <br/>
<a id="pl.31.23"></a><var>31.23</var>to the commission for electronic service purposes. This section does not apply to the extent <br/>
<a id="pl.31.24"></a><var>31.24</var>another provision of this chapter or chapter 216A requires a specific method of service.<br/>
<a id="pl.31.25"></a><var>31.25</var> Regulated utilities and state agencies must provide an electronic address to the commission <br/>
<a id="pl.31.26"></a><var>31.26</var>for electronic service purposes and agree to accept electronic service as official service.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.31.27"></a><var>31.27</var>    Sec. 20. Minnesota Statutes 2012, section 216B.18, is amended to read:<br/>
<a id="pl.31.28"></a><var>31.28</var><b>216B.18 SERVICE OF NOTICE.</b><br/>
<a id="pl.31.29"></a><var>31.29</var>Service of notice of all hearings, investigations, and proceedings pending before <br/>
<a id="pl.31.30"></a><var>31.30</var>the commission and of complaints, reports, orders, and other documents must be <br/>
<a id="pl.31.31"></a><var>31.31</var>made personally, by electronic service as provided in section 
         <statute_ref>216.17</statute_ref>, or by mail as the <br/>
<a id="pl.31.32"></a><var>31.32</var>commission may direct. Regulated utilities and state agencies must provide an electronic <br/>
<a id="pl.32.1"></a><var>32.1</var>address to the commission for electronic service purposes and agree to accept electronic <br/>
<a id="pl.32.2"></a><var>32.2</var>service as official service.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.32.3"></a><var>32.3</var>    Sec. 21. Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:<br/>
<a id="pl.32.4"></a><var>32.4</var>    Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision apply to this <br/>
<a id="pl.32.5"></a><var>32.5</var>section.<br/>
<a id="pl.32.6"></a><var>32.6</var>(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located <br/>
<a id="pl.32.7"></a><var>32.7</var>in the Department of Public Safety and managed by the Bureau of Criminal Apprehension. <br/>
<a id="pl.32.8"></a><var>32.8</var>A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.<br/>
<a id="pl.32.9"></a><var>32.9</var>(c) "Law enforcement agency" means a Minnesota municipal police department, <br/>
<a id="pl.32.10"></a><var>32.10</var>the Metropolitan Transit Police, the Metropolitan Airports Police, the University of <br/>
<a id="pl.32.11"></a><var>32.11</var>Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit, <br/>
<a id="pl.32.12"></a><var>32.12</var>a Minnesota county sheriff's department, the Enforcement Division of the Department of <br/>
<a id="pl.32.13"></a><var>32.13</var>Natural Resources, the Commerce Fraud Bureau, the Bureau of Criminal Apprehension, <br/>
<a id="pl.32.14"></a><var>32.14</var>or the Minnesota State Patrol.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.32.15"></a><var>32.15</var>    Sec. 22. <b>REVISOR INSTRUCTION.</b><br/>
<a id="pl.32.16"></a><var>32.16</var>Consistent with the name change in section 2, the revisor of statutes shall change <br/>
<a id="pl.32.17"></a><var>32.17</var>the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud <br/>
<a id="pl.32.18"></a><var>32.18</var>Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.32.19"></a><var>32.19</var>    Sec. 23. <b> REPEALER.</b><br/>
<a id="pl.32.20"></a><var>32.20</var>    Subdivision 1. <b>Petroleum tank release cleanup; PVC piping at residential </b><br/>
<a id="pl.32.21"></a><var>32.21</var><b>locations.</b> Minnesota Statutes 2012, section 115C.09, subdivision 3k, is repealed.<br/>
<a id="pl.32.22"></a><var>32.22</var>    Subd. 2. <b>Agricultural storage tank removal.</b> Laws 2000, chapter 488, article <br/>
<a id="pl.32.23"></a><var>32.23</var>3, section 37, is repealed.<br/>
<a id="pl.32.24"></a><var>32.24</var>    Subd. 3. <b>Prior appraiser qualification requirements.</b> Minnesota Statutes 2012, <br/>
<a id="pl.32.25"></a><var>32.25</var>section 82B.095, subdivision 1, is repealed.<br/>