1.1A bill for an act1.2relating to commerce; making various technical and housekeeping changes 1.3related to staff adjusters, canceled licenses, and transfer fees; providing producer 1.4training requirements for flood insurance products; regulating the Commerce 1.5Fraud Bureau; requiring property and casualty actuarial opinions of reserves and 1.6supporting documentation; regulating the agricultural cooperative health plan for 1.7farmers; regulating real property appraisals; providing application, education, 1.8and training requirements; regulating certain Public Utilities Commission 1.9requests relating to service of notices, orders, and other documents; eliminating 1.10the membership camping license requirement; repealing an obsolete collection 1.11agency rule; correcting cross-references; making adjustments to various dollar 1.12amounts as required by state law; providing for a method to periodically update 1.13Minnesota Statutes to reflect the current dollar amounts as adjusted; amending 1.14Minnesota Statutes 2012, sections 13.712, by adding a subdivision; 45.0135; 1.1545.027, subdivision 2; 45.307; 45.43; 47.59, subdivisions 3, 6; 56.12; 56.125, 1.16subdivision 2; 56.131, subdivisions 2, 6; 60A.62, subdivision 1; 72B.10; 82.62, 1.17subdivision 7; 82.63, subdivision 8; 82A.06, subdivision 2; 82A.13, subdivision 1.181; 82A.18, subdivision 2; 82B.08, by adding a subdivision; 82B.094; 82B.095, 1.19subdivision 2; 82B.10, subdivision 1; 82B.13, subdivisions 1, 4, 5, 8, by adding 1.20a subdivision; 82C.16, subdivision 1; 216.17, subdivisions 2, 4; 216B.18; 1.21299C.40, subdivision 1; 325G.22, subdivision 1; 510.02, subdivision 1; 550.37, 1.22subdivisions 4, 4a, 6, 10, 12a, 23, 24; Laws 2007, chapter 147, article 12, section 1.2314, as amended; proposing coding for new law in Minnesota Statutes, chapters 1.2460A; 60K; repealing Minnesota Statutes 2012, sections 82A.16; 82A.17; 1.2582B.095, subdivision 1; 115C.09, subdivision 3k; Laws 2000, chapter 488, 1.26article 3, section 37; Minnesota Rules, part 2870.1500.1.27BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.28ARTICLE 11.29MISCELLANEOUS TECHNICAL CHANGES1.30    Section 1. [60K.366] PRODUCER TRAINING REQUIREMENTS FOR FLOOD 1.31INSURANCE PRODUCTS.2.1An individual may not sell, solicit, or negotiate flood insurance through the National 2.2Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer 2.3for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b), 2.4clauses (3), (4), and (6), and has in addition to the training otherwise required by this 2.5chapter, satisfied the minimum training and education requirements established by the 2.6Federal Emergency Management Agency (FEMA) for all insurance producers who sell 2.7insurance through the NFIP and published at 70 Federal Register 52, 117.2.8Upon request of the commissioner, an issuer must demonstrate to the commissioner 2.9that its appointed producers who sell flood insurance through the NFIP have complied 2.10with the minimum training and education requirements established by FEMA.2.11    Sec. 2. Minnesota Statutes 2012, section 72B.10, is amended to read:2.1272B.10 STAFF ADJUSTERS.2.13A staff adjuster who adjusts losses or claims in this state shall not be subject to 2.14the application, licensing, or examination requirements or other qualifications set forth 2.15in sections 
         72B.01 to 
         72B.14. Such a staff adjuster shall not, however, engage in any 2.16of the practices forbidden to a licensee under section 
         72B.08, subdivision 1, clause2.17 clauses (3), (4), (5), (6), (7), or (8) through (15). If the commissioner has information, 2.18which if true, would establish that a staff adjuster has engaged or is engaging in any such 2.19prohibited practices, the commissioner may issue an order for a hearing to determine the 2.20facts involved. The order shall fix the time and place for hearing. The staff adjuster 2.21and one or more representatives of the insurer or insurers employing the staff adjuster 2.22shall make an appearance at the hearing unless the commissioner expressly waives the 2.23appearance of one or more such parties. If, following the hearing, the commissioner 2.24determines that the staff adjuster has engaged or is engaging in any prohibited practices, 2.25the commissioner may impose a fine, not in excess of $500, on the staff adjuster or on the 2.26employing insurer or insurers, or on both such parties. In addition, the commissioner may 2.27order the employing insurer to suspend the staff adjuster from all duties for such period as 2.28the commissioner may deem appropriate.2.29Any final order of the commissioner shall be subject to judicial review. Any hearing 2.30or judicial review under this section shall be in accordance with the contested case 2.31provisions of chapter 14.2.32    Sec. 3. Minnesota Statutes 2012, section 82.62, subdivision 7, is amended to read:2.33    Subd. 7. Cancellation Reinstatement of canceled salesperson's or broker's 2.34license. A salesperson's or broker's license that has been canceled for failure of a licensee 3.1to complete postlicensing education requirements must be returned to the commissioner 3.2by the licensee's broker within ten days of receipt of notice of cancellation. The license3.3 shall be reinstated without reexamination by completing the required instruction, filing 3.4an application, and paying the fee for a salesperson's or broker's license within two years 3.5of the cancellation date.3.6    Sec. 4. Minnesota Statutes 2012, section 82.63, subdivision 8, is amended to read:3.7    Subd. 8. Procedure. An application for automatic transfer shall be made only on 3.8the form prescribed by the commissioner. The transfer is ineffective if the form is not 3.9completed in its entirety.3.10The form shall be accompanied by a $10 $20 transfer fee, and the license renewal 3.11fee, if applicable. Cash will not be accepted.3.12The signature of the broker from whom the salesperson is transferring must predate 3.13the signature of the broker to whom the salesperson is transferring. The salesperson is 3.14unlicensed for the period of time between the times and dates of both signatures. The 3.15broker from whom the salesperson is transferring shall sign and date the transfer application 3.16upon the request of the salesperson and shall destroy the salesperson's license immediately.3.17    Sec. 5. Minnesota Statutes 2012, section 82A.06, subdivision 2, is amended to read:3.18    Subd. 2. Partial transactional exemptions. The following transactions are exempt 3.19from the provisions of sections 
         82A.03; 
         82A.04; 
         82A.05; 
         82A.07; 
         82A.08; 
         82A.11, 3.20subdivisions 2 and 4; and82A.14; 82A.16; and 82A.17: any sale which is made to a 3.21person who is not then physically present in this state, and any offer which invites an 3.22offeree to attend a sales presentation in another state if:3.23(1) the offeror has given at least ten days prior written notice to the commissioner 3.24of its intention to offer or sell membership camping contracts to residents of this state 3.25pursuant to this exemption and paid a fee of $50;3.26(2) the offeror has demonstrated that the sales presentation will be made, and the 3.27sale will be consummated, in a state which specifically regulates the offer and sale of 3.28membership camping contracts;3.29(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees 3.30who are residents of this state which contains substantially the same or greater disclosure 3.31as is required by section 
         82A.05; and3.32(4) the offeror has filed a consent to service of process pursuant to section 
         82A.22.3.33    Sec. 6. Minnesota Statutes 2012, section 82A.13, subdivision 1, is amended to read:4.1    Subdivision 1. Untrue statements filed in documents. No person shall make 4.2or cause to be made any untrue statement of a material fact in an application or other 4.3document filed with the commissioner under this chapter, or omit to state in the application 4.4or other document any material fact which is required to be stated therein, or fail to 4.5notify the commissioner of any material change as required by sections section82A.074.6and 82A.16, subdivision 3.4.7    Sec. 7. Minnesota Statutes 2012, section 82A.18, subdivision 2, is amended to read:4.8    Subd. 2. Civil penalty. Any person who materially or repeatedly violates section 4.982A.03
         , 
         82A.05, 
         82A.09, 
         82A.13, or 82A.14, or 82A.16 shall be subject to a fine of not 4.10more than $1,000 for each violation provided, however, that the total recovery arising from 4.11the same failure to comply, but involving different purchasers, shall be limited to $5,000. A 4.12fine authorized by this subdivision may be imposed in a civil action brought by the attorney 4.13general on behalf of the state of Minnesota, and shall be deposited into the state treasury.4.14    Sec. 8. Minnesota Statutes 2012, section 82C.16, subdivision 1, is amended to read:4.15    Subdivision 1. Powers of commissioner. (a) The commissioner may by order 4.16take any or all of the following actions:4.17(1) bar a person from serving as an officer, director, partner, controlling person, or 4.18any similar role at an appraisal management company, if such person has ever been the 4.19subject of a final order suspending, revoking, or denying a certification, registration, or 4.20license as a real estate agent, broker, or appraiser, or a final order barring involvement in 4.21any industry or profession issued by this or another state or federal regulatory agency;4.22(2) deny, suspend, or revoke an appraisal management company license;4.23(3) censure an appraisal management company license; and4.24(4) impose a civil penalty as provided for in chapter 
         45.027.4.25(b) In order to take the action in paragraph (a), the commissioner must find:4.26(1) that the order is in the public interest; and4.27(2) that an officer, director, partner, employee, agent, controlling person or persons, 4.28or any person occupying a similar status or performing similar functions, has:4.29(i) violated any provision of this chapter;4.30(ii) filed an application for a license that is incomplete in any material respect or 4.31contains a statement that, in light of the circumstances under which it is made, is false or 4.32misleading with respect to a material fact;4.33(iii) failed to maintain compliance with the affirmations made under section 
         80C.034.34 82C.03, subdivision 5;5.1(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, 5.2or dishonest act or practice, whether or not the act or practice involves the appraisal 5.3management company;5.4(v) engaged in an act or practice, whether or not the act or practice involves the 5.5business of appraisal management, appraisal assignments, or real estate mortgage related 5.6practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;5.7(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, 5.8or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral 5.9turpitude;5.10(vii) paid a civil penalty or been the subject of disciplinary action by the 5.11commissioner, or an order of suspension or revocation, cease and desist order, or 5.12injunction order, or an order barring involvement in an industry or profession issued by 5.13this or any other state or federal regulatory agency or government-sponsored enterprise, 5.14or by the secretary of Housing and Urban Development;5.15(viii) been found by a court of competent jurisdiction to have engaged in conduct 5.16evidencing gross negligence, fraud, misrepresentation, or deceit;5.17(ix) refused to cooperate with an investigation or examination by the commissioner;5.18(x) failed to pay any fee or assessment imposed by the commissioner; or5.19(xi) failed to comply with state and federal tax obligations.5.20    Sec. 9. Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, 5.21chapter 344, section 4, subdivision 1, and Laws 2010, chapter 384, section 99, is amended 5.22to read:5.23    Sec. 14. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR 5.24FARMERS.5.25    Subdivision 1. Pilot project requirements. Notwithstanding contrary provisions of 5.26Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project 5.27administered by a trust sponsored by one or more agricultural cooperatives organized 5.28under Minnesota Statutes, chapter 308A or 308B, or under a federal charter for the 5.29purpose of offering health coverage to members of the cooperatives and their families, 5.30provided the project satisfies the other requirements of Minnesota Statutes, chapter 62H:5.31    (1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply;5.32    (2) the notice period required under Minnesota Statutes, section 62H.02, paragraph 5.33(e), is 90 days;5.34    (3) (1) a joint self-insurance plan may elect to treat the sale of a health plan to or 5.35for an employer that has only one eligible employee who has not waived coverage as the 6.1sale of an individual health plan as allowed under Minnesota Statutes, section 
         62L.02, 6.2subdivision 26
         ;6.3(2) notwithstanding Minnesota Statutes, section 62H.05, the cooperative board of 6.4trustees shall consist of a minimum of five and a maximum of nine trustees;6.5(3) notwithstanding any other provisions of state law, a trust created under Minnesota 6.6Statutes, section 62H.05, may be identified as a "cooperative trust" if it is a part of an 6.7agricultural cooperative health plan for farmers under this section;6.8(4) Minnesota Statutes, section 62H.11, does not apply, and notwithstanding 6.9contrary provisions of Minnesota law, the agricultural cooperatives may undertake 6.10activities directly and through agents, brokers, third-party administrators and other entities 6.11to promote and market the health plan to members of the cooperatives prior to approval 6.12of the joint self-insurance plan;6.13(5) the joint self-insurance plan is exempt from the requirement in Minnesota 6.14Statutes, section 62H.01, to have 1,000 covered enrollees at initial enrollment when the 6.15following conditions are met:6.16(i) the plan secures approval from the commissioner of commerce of marketing 6.17materials, policy forms, and application forms prior to their use in securing preenrollment 6.18commitments; and6.19(ii) the plan receives commitments in the form of executed letters of intent to 6.20enroll from a minimum of 1,000 individuals within 12 months of approval of policy and 6.21application forms by the commissioner of commerce;6.22(6) the plan must secure prior to initial enrollment aggregate stop-loss coverage and 6.23individual stop-loss coverage provided by an insurance company licensed by the state of 6.24Minnesota. The plan must submit the stop-loss insurance contract to the commissioner of 6.25commerce at least 30 days prior to the proposed plan's effective date and at least 30 days 6.26subsequent to any renewal date. Any excess or stop-loss insurance plan must contain a 6.27provision that the excess or stop-loss insurer will give the plan and the commissioner of 6.28commerce a minimum of 180 days notice of termination or nonrenewal. If the plan fails to 6.29secure replacement coverage within 150 days after receipt of the notice of cancellation or 6.30nonrenewal, the commissioner shall issue an order providing for the orderly termination of 6.31the plan;6.32(7) the cooperative must establish a reserve fund, certified by an actuary to be 6.33sufficient to cover unpaid claim liability for incurred but not reported liabilities in the 6.34event of plan termination. Actuarial certification must include all maximum funding 6.35requirements for plan fixed cost requirements and current claims liability requirements and 6.36must include calculation for the reserve levels needed to fund all incurred but not reported 7.1liabilities in the event of member or plan termination. All such reserve funds will be held 7.2in protection of a cooperative trust, in accordance with the plan bylaws. An initial deposit 7.3shall be made to the trust fund in an amount equal to the annual estimated reserve amount 7.4for each of the members required for initial approval as provided by clause (5). In addition 7.5to the initial deposit, monthly reserve funding will continue from a portion of billed rates 7.6collected from participants which will be based on standard actuarial calculations. The 7.7plan will provide scheduled financial reports to the commissioner of commerce for audit 7.8of the financial health of the plan in meeting all plan liabilities;7.9    (4) (8) Minnesota Statutes, section 
         297I.05, subdivision 12, paragraph (c), applies; 7.10and7.11    (5) (9) the trust must pay the assessment for the Minnesota Comprehensive Health 7.12Association as provided under Minnesota Statutes, section 
         62E.11.7.13EFFECTIVE DATE.This section is effective the day following final enactment.7.14    Sec. 10.  REPEALER.7.15    Subdivision 1.Membership camping licensing requirement for salespersons or 7.16brokers. Minnesota Statutes 2012, sections 82A.16; and 82A.17, are repealed.7.17    Subd. 2.Collection agency license renewal; obsolete rule.Minnesota Rules, part 7.182870.1500, is repealed.7.19ARTICLE 27.20ADJUSTMENTS TO STATUTORY DOLLAR AMOUNTS7.21    Section 1. Minnesota Statutes 2012, section 47.59, subdivision 3, is amended to read:7.22    Subd. 3. Finance charge for loans. (a) With respect to a loan, including a loan 7.23pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a 7.24financial institution may contract for and receive a finance charge on the unpaid balance of 7.25the principal amount not to exceed the greater of:7.26(1) an annual percentage rate not exceeding 21.75 percent; or 7.27(2) the total of:7.28(i) 33 percent per year on that part of the unpaid balance of the principal amount 7.29not exceeding $750 $1,125; and7.30(ii) 19 percent per year on that part of the unpaid balance of the principal amount 7.31exceeding $750 $1,125.8.1With respect to open-end credit pursuant to a credit card, the financial institution 8.2may contract for and receive a finance charge on the unpaid balance of the principal 8.3amount at an annual percentage rate not exceeding 18 percent per year.8.4(b) On a loan where the finance charge is calculated according to the method 8.5provided for in paragraph (a), clause (2), the finance charge must be contracted for and 8.6earned as provided in that provision or at the single annual percentage rate computed to 8.7the nearest one-tenth of one percent that would earn the same total finance charge at 8.8maturity of the contract as would be earned by the application of the graduated rates 8.9provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms 8.10and the calculations are made according to the actuarial method.8.11(c) With respect to a loan, the finance charge must be considered not to exceed 8.12the maximum annual percentage rate permitted under this section if the finance charge 8.13contracted for and received does not exceed the equivalent of the maximum annual 8.14percentage rate calculated in accordance with Code of Federal Regulations, title 12, part 8.15226, but using the definition of finance charge provided in this section.8.16(d) This subdivision does not limit or restrict the manner of calculating the finance 8.17charge, whether by way of add-on, discount, discount points, precomputed charges, single 8.18annual percentage rate, variable rate, interest in advance, compounding, average daily 8.19balance method, or otherwise, if the annual percentage rate does not exceed that permitted 8.20by this section. Discount points permitted by this paragraph and not collected but included 8.21in the principal amount must not be included in the amount on which credit insurance 8.22premiums are calculated and charged.8.23(e) With respect to a loan secured by real estate, if a finance charge is calculated or 8.24collected in advance, or included in the principal amount of the loan, and the borrower 8.25prepays the loan in full, the financial institution shall credit the borrower with a refund of 8.26the charge to the extent that the annual percentage rate yield on the loan would exceed the 8.27maximum rate permitted under paragraph (a), taking into account the prepayment. The 8.28refund need not be made if it would be less than $5 $7.50.8.29(f) With respect to all other loans, if the finance charge is calculated or collected in 8.30advance, or included in the principal amount of the loan, and the borrower prepays the 8.31loan in full, the financial institution shall credit the borrower with a refund of the charge to 8.32the extent the annual percentage rate yield on the loan would exceed the annual percentage 8.33rate on the loan as originally determined under paragraph (a) and taking into account the 8.34prepayment. The refund need not be made if it would be less than $5 $7.50.8.35(g) For the purpose of calculating the refund under this subdivision, the financial 8.36institution may assume that the contract was paid before the date of prepayment according 9.1to the schedule of payments under the loan and that all payments were paid on their due 9.2dates.9.3(h) For loans repayable in substantially equal successive monthly installments, the 9.4financial institution may calculate the refund under paragraph (f) as the portion of the 9.5finance charge allocable on an actuarial basis to all wholly unexpired payment periods 9.6following the date of prepayment, based on the annual percentage rate on the loan as 9.7originally determined under paragraph (a), and for the purpose of calculating the refund 9.8may assume that all payments are made on the due date.9.9(i) The dollar amounts in this subdivision and, subdivision 6, paragraph (a), clause 9.10(4), and the dollar amount of original principal amount of closed-end credit in subdivision 9.116, paragraph (d), shall change periodically, as provided in this section, according to and to 9.12the extent of changes in the implicit price deflator for the gross domestic product, 19879.13 2005 = 100, compiled by the United States Department of Commerce, and hereafter 9.14referred to as the index. The index for December 19912011 is the reference base index for 9.15adjustments of dollar amounts.9.16(j) The designated dollar amounts shall change on July 1 of each even-numbered 9.17year if the percentage of change, calculated to the nearest whole percentage point, 9.18between the index for December of the preceding year and the reference base index is 9.19ten percent or more; but9.20(1) the portion of the percentage change in the index in excess of a multiple of ten 9.21percent shall be disregarded and the dollar amounts shall change only in multiples of ten 9.22percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and9.23(2) the dollar amounts shall not change if the amounts required by this section 9.24are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier 9.25application of this section.9.26(k) If the index is revised, the percentage of change pursuant to this section shall 9.27be calculated on the basis of the revised index. If a revision of the index changes the 9.28reference base index, a revised reference base index shall be determined by multiplying the 9.29reference base index then applicable by the rebasing factor furnished by the Department 9.30of Commerce. If the index is superseded, the index referred to in this section is the one 9.31represented by the Department of Commerce as reflecting most accurately changes in the 9.32purchasing power of the dollar for consumers.9.33(l) The commissioner shall announce and publish:9.34(1) announce and publish on or before April 30 of each year in which dollar amounts 9.35are to change, the changes in dollar amounts required by paragraph (j); and10.1(2) announce and publish promptly after the changes occur, changes in the index 10.2required by paragraph (k) including, if applicable, the numerical equivalent of the 10.3reference base index under a revised reference base index and the designation or title 10.4of any index superseding the index.; and10.5(3) promptly notify the revisor of statutes in writing of the changes announced and 10.6published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish 10.7the changes in the next edition of Minnesota Statutes.10.8(m) A person does not violate this chapter with respect to a transaction otherwise 10.9complying with this chapter if that person relies on dollar amounts either determined 10.10according to paragraph (j), clause (2), or appearing in the last publication of the 10.11commissioner announcing the then current dollar amounts.10.12(n) The adjustments provided in this section shall not be affected unless explicitly 10.13provided otherwise by law.10.14    Sec. 2. Minnesota Statutes 2012, section 47.59, subdivision 6, is amended to read:10.15    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial 10.16institution" includes a person described in subdivision 4, paragraph (a). In addition to the 10.17finance charges permitted by this section, a financial institution may contract for and 10.18receive the following additional charges that may be included in the principal amount 10.19of the loan or credit sale unpaid balances:10.20(1) official fees and taxes;10.21(2) charges for insurance as described in paragraph (b);10.22(3) with respect to a loan or credit sale contract secured by real estate, the following 10.23"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of 10.24circumvention or evasion of this section:10.25(i) fees or premiums for title examination, abstract of title, title insurance, surveys, 10.26or similar purposes;10.27(ii) fees for preparation of a deed, mortgage, settlement statement, or other 10.28documents, if not paid to the financial institution;10.29(iii) escrows for future payments of taxes, including assessments for improvements, 10.30insurance, and water, sewer, and land rents;10.31(iv) fees for notarizing deeds and other documents;10.32(v) appraisal and credit report fees; and10.33(vi) fees for determining whether any portion of the property is located in a flood 10.34zone and fees for ongoing monitoring of the property to determine changes, if any, 10.35in flood zone status;11.1(4) a delinquency charge on a payment, including the minimum payment due in 11.2connection with open-end credit, not paid in full on or before the tenth day after its due 11.3date in an amount not to exceed five percent of the amount of the payment or $5.20 $7.80, 11.4whichever is greater;11.5(5) for a returned check or returned automatic payment withdrawal request, an 11.6amount not in excess of the service charge limitation in section 
         604.113, except that, on 11.7a loan transaction that is a consumer small loan as defined in section 
         47.60, subdivision 11.81
         , paragraph (a), in which cash is advanced in exchange for a personal check, the civil 11.9penalty provisions of section 
         604.113, subdivision 2, paragraph (b), may not be demanded 11.10or assessed against the borrower; and 11.11(6) charges for other benefits, including insurance, conferred on the borrower that 11.12are of a type that is not for credit.11.13(b) An additional charge may be made for insurance written in connection with the 11.14loan or credit sale contract, which may be included in the principal amount of the loan or 11.15credit sale unpaid balances:11.16(1) with respect to insurance against loss of or damage to property, or against 11.17liability arising out of the ownership or use of property, if the financial institution furnishes 11.18a clear, conspicuous, and specific statement in writing to the borrower setting forth the 11.19cost of the insurance if obtained from or through the financial institution and stating that 11.20the borrower may choose the person through whom the insurance is to be obtained;11.21(2) with respect to credit insurance or mortgage insurance providing life, accident, 11.22health, or unemployment coverage, if the insurance coverage is not required by the 11.23financial institution, and this fact is clearly and conspicuously disclosed in writing to 11.24the borrower, and the borrower gives specific, dated, and separately signed affirmative 11.25written indication of the borrower's desire to do so after written disclosure to the borrower 11.26of the cost of the insurance; and11.27(3) with respect to the vendor's single interest insurance, but only (i) to the extent 11.28that the insurer has no right of subrogation against the borrower; and (ii) to the extent that 11.29the insurance does not duplicate the coverage of other insurance under which loss is 11.30payable to the financial institution as its interest may appear, against loss of or damage 11.31to property for which a separate charge is made to the borrower according to clause (1); 11.32and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the 11.33financial institution to the borrower setting forth the cost of the insurance if obtained from 11.34or through the financial institution and stating that the borrower may choose the person 11.35through whom the insurance is to be obtained.12.1(c) In addition to the finance charges and other additional charges permitted by 12.2this section, a financial institution may contract for and receive the following additional 12.3charges in connection with open-end credit, which may be included in the principal 12.4amount of the loan or balance upon which the finance charge is computed:12.5(1) annual charges, not to exceed $50 per annum, payable in advance, for the 12.6privilege of opening and maintaining open-end credit;12.7(2) charges for the use of an automated teller machine;12.8(3) charges for any monthly or other periodic payment period in which the borrower 12.9has exceeded or, except for the financial institution's dishonor would have exceeded, 12.10the maximum approved credit limit, in an amount not in excess of the service charge 12.11permitted in section 
         604.113; 12.12(4) charges for obtaining a cash advance in an amount not to exceed the service 12.13charge permitted in section 
         604.113; and 12.14(5) charges for check and draft copies and for the replacement of lost or stolen 12.15credit cards.12.16(d) In addition to the finance charges and other additional charges permitted by this 12.17section, a financial institution may contract for and receive a onetime loan administrative 12.18fee not exceeding $25 in connection with closed-end credit, which may be included 12.19in the principal balance upon which the finance charge is computed. This paragraph 12.20applies only to closed-end credit in an original principal amount of $4,320$6,480 or less. 12.21The determination of an original principal amount must exclude the administrative fee 12.22contracted for and received according to this paragraph.12.23    Sec. 3. Minnesota Statutes 2012, section 56.12, is amended to read:12.2456.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.12.25No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause 12.26or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any 12.27manner any statement or representation with regard to the rates, terms, or conditions for 12.28the lending of money, credit, goods, or things in action which is false, misleading, or 12.29deceptive. The commissioner may order any licensee to desist from any conduct which 12.30the commissioner shall find to be a violation of the foregoing provisions.12.31The commissioner may require that rates of charge, if stated by a licensee, be stated 12.32fully and clearly in such manner as the commissioner may deem necessary to prevent 12.33misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements 12.34of this section and section 
         56.14, a licensee may give the disclosures required by the 12.35federal Truth-in-Lending Act. 13.1A licensee may take a lien upon real estate as security for any loan exceeding $4,32013.2 $6,480 in principal amount made under this chapter. The provisions of sections 
         47.20 and 13.347.21
          do not apply to loans made under this chapter, except as provided in this section. No 13.4loan secured by a first lien on a borrower's primary residence shall be made pursuant to 13.5this section if the proceeds of the loan are used to finance the purchase of the borrower's 13.6primary residence, unless: 13.7(1) the proceeds of the loan are used to finance the purchase of a manufactured 13.8home or a prefabricated building; or13.9(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed 13.10on a contract for deed.13.11If the proceeds of the loan are used to finance the purchase of the borrower's 13.12primary residence, the licensee shall consent to the subsequent transfer of the real estate 13.13if the existing borrower continues after transfer to be obligated for repayment of the 13.14entire remaining indebtedness. The licensee shall release the existing borrower from all 13.15obligations under the loan instruments, if the transferee (1) meets the standards of credit 13.16worthiness normally used by persons in the business of making loans, including but not 13.17limited to the ability of the transferee to make the loan payments and satisfactorily maintain 13.18the property used as collateral, and (2) executes an agreement in writing with the licensee 13.19whereby the transferee assumes the obligations of the existing borrower under the loan 13.20instruments. Any such agreement shall not affect the priority, validity or enforceability 13.21of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one 13.22percent of the remaining unpaid principal balance in the event the loan is assumed by 13.23the transferee and the existing borrower continues after the transfer to be obligated for 13.24repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess 13.25of one percent of the remaining unpaid principal balance in the event the remaining 13.26indebtedness is assumed by the transferee and the existing borrower is released from all 13.27obligations under the loan instruments, but in no event shall the fee exceed $240 $360.13.28A licensee making a loan under this chapter secured by a lien on real estate shall 13.29comply with the requirements of section 
         47.20, subdivision 8. 13.30No licensee shall conduct the business of making loans under this chapter within any 13.31office, room, or place of business in which any other business is solicited or engaged in, 13.32or in association or conjunction therewith, if the commissioner finds that the character 13.33of the other business is such that it would facilitate evasions of this chapter or of the 13.34rules lawfully made hereunder. The commissioner may promulgate rules dealing with 13.35such other businesses.14.1No licensee shall transact the business or make any loan provided for by this chapter 14.2under any other name or at any other place of business than that named in the license. No 14.3licensee shall take any confession of judgment or any power of attorney. No licensee shall 14.4take any note or promise to pay that does not accurately disclose the principal amount 14.5of the loan, the time for which it is made, and the agreed rate or amount of charge, nor 14.6any instrument in which blanks are left to be filled in after execution. Nothing herein is 14.7deemed to prohibit the making of loans by mail or arranging for settlement and closing 14.8of real estate secured loans by an unrelated qualified closing agent at a location other 14.9than the licensed location.14.10    Sec. 4. Minnesota Statutes 2012, section 56.125, subdivision 2, is amended to read:14.11    Subd. 2. Real estate as security. A licensee may take a lien upon real estate as 14.12security for any open-end loan at or after such time as the outstanding balance first exceeds 14.13$4,320 $6,480. A subsequent reduction in the balance below $4,320$6,480 has no effect 14.14on the lien. A licensee may retain the security interest until it terminates the open-end 14.15account. If there is no outstanding balance in the account and there is no commitment by 14.16the licensee to a line of credit in excess of $4,320 $6,480, the licensee shall, within 20 14.17days following written demand by the borrower, deliver to the borrower a release of the 14.18mortgage on any real property taken as security for the open-end loan agreement. A real 14.19estate mortgage authorized for a financial institution secures all advances and obligations 14.20thereunder from the date of recording.14.21    Sec. 5. Minnesota Statutes 2012, section 56.131, subdivision 2, is amended to read:14.22    Subd. 2. Additional charges. In addition to the charges provided for by this section 14.23and section 
         56.155, and notwithstanding section 
         47.59, subdivision 6, to the contrary, no 14.24further or other amount whatsoever, shall be directly or indirectly charged, contracted for, 14.25or received for the loan made, except actual out of pocket expenses of the licensee to 14.26realize on a security after default, and except for the following additional charges which 14.27may be included in the principal amount of the loan: 14.28(a) lawful fees and taxes paid to any public officer to record, file, or release security;14.29(b) with respect to a loan secured by an interest in real estate, the following closing 14.30costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention 14.31or evasion of this section; provided the costs do not exceed one percent of the principal 14.32amount or $400 $600, whichever is greater:14.33(1) fees or premiums for title examination, abstract of title, title insurance, surveys, 14.34or similar purposes;15.1(2) fees, if not paid to the licensee, an employee of the licensee, or a person related 15.2to the licensee, for preparation of a mortgage, settlement statement, or other documents, 15.3fees for notarizing mortgages and other documents, and appraisal fees;15.4(c) the premium for insurance in lieu of perfecting and releasing a security interest to 15.5the extent that the premium does not exceed the fees described in paragraph (a);15.6(d) discount points and appraisal fees may not be included in the principal amount of 15.7a loan secured by an interest in real estate when the loan is a refinancing for the purpose of 15.8bringing the refinanced loan current and is made within 24 months of the original date of 15.9the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for 15.10the purpose of bringing the refinanced loan current if new funds advanced to the customer, 15.11not including closing costs or delinquent installments, exceed $1,000 $1,500; and15.12(e) the onetime loan administrative fee in section 
         47.59, subdivision 6, paragraph (d). 15.13    Sec. 6. Minnesota Statutes 2012, section 56.131, subdivision 6, is amended to read:15.14    Subd. 6. Discount points. A loan made under this section that is secured by real 15.15estate and that is in a principal amount of $12,000$18,000 or more and has a maturity 15.16of 60 months or more may contain a provision permitting discount points, if the loan 15.17does not provide a loan yield in excess of the maximum rate of interest permitted by this 15.18section. Loan yield means the annual rate of return obtained by a licensee computed as 15.19the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid 15.20in full, the licensee must make a refund to the borrower to the extent that the loan yield 15.21will exceed the maximum rate of interest provided by this section when the prepayment is 15.22taken into account. Discount points permitted by this subdivision and not collected but 15.23included in the principal amount must not be included in the amount on which credit 15.24insurance premiums are calculated and charged.15.25    Sec. 7. Minnesota Statutes 2012, section 325G.22, subdivision 1, is amended to read:15.26    Subdivision 1. Personal liability of buyer limited. If the seller or lender 15.27repossesses or voluntarily accepts surrender of personal property in which the seller or 15.28lender has a security interest arising out of a consumer credit transaction and the aggregate 15.29amount of the credit extended in the transaction was $3,000 $6,900 or less, the buyer is not 15.30personally liable to the seller or lender for the unpaid balance of the debt arising from the 15.31consumer credit transaction, and the seller or lender is not obligated to resell the collateral.15.32    Sec. 8. Minnesota Statutes 2012, section 510.02, subdivision 1, is amended to read:16.1    Subdivision 1. Exemption. The homestead may include any quantity of land not 16.2exceeding 160 acres. The exemption per homestead, whether the exemption is claimed 16.3by one or more debtors, may not exceed $300,000$390,000 or, if the homestead is used 16.4primarily for agricultural purposes, $750,000 $975,000, exclusive of the limitations set 16.5forth in section 
         510.05. 16.6    Sec. 9. Minnesota Statutes 2012, section 550.37, subdivision 4, is amended to read:16.7    Subd. 4. Personal goods. (a) All wearing apparel, one watch, utensils, and 16.8foodstuffs of the debtor and the debtor's family.16.9(b) Household furniture, household appliances, phonographs, radio and television 16.10receivers of the debtor and the debtor's family, not exceeding $4,500$10,350 in value.16.11(c) The debtor's aggregate interest, not exceeding $1,225$2,817.50 in value, in 16.12wedding rings or other religious or culturally recognized symbols of marriage exchanged 16.13between the debtor and spouse at the time of the marriage and in the debtor's possession.16.14The exemption provided by this subdivision may not be waived except with regard 16.15to purchase money security interests. Except for a pawnbroker's possessory lien, a 16.16nonpurchase money security interest in the property exempt under this subdivision is void.16.17If a debtor has property of the type which would qualify for the exemption under 16.18clause (b), of a value in excess of $4,500$10,350 an itemized list of the exempt property, 16.19together with the value of each item listed, shall be attached to the security agreement 16.20at the time a security interest is taken, and a creditor may take a nonpurchase money 16.21security interest in the excess over $4,500$10,350 by requiring the debtor to select the 16.22exemption in writing at the time the loan is made.16.23    Sec. 10. Minnesota Statutes 2012, section 550.37, subdivision 4a, is amended to read:16.24    Subd. 4a. Adjustment of dollar amounts. (a) Except for subdivisions 5 and 7, the 16.25dollar amounts in this section shall change periodically as provided in this subdivision to 16.26the extent of changes in the implicit price deflator for the gross nationaldomestic product, 16.271972 2005 = 100, compiled by the United States Department of Commerce, and hereafter 16.28referred to as the index. The index for December 19802011 is the reference base index.16.29(b) The designated dollar amounts shall change on July 1 of each even-numbered 16.30year if the percentage of change, calculated to the nearest whole percentage point, between 16.31the index for December of the preceding year and the reference base index is ten percent 16.32or more. The portion of the percentage change in the index in excess of a multiple of ten 16.33percent shall be disregarded and the dollar amounts shall change only in multiples of ten 16.34percent of the amounts stated in this section.17.1(c) If the index is revised, the percentage of change pursuant to this section shall 17.2be calculated on the basis of the revised index. If a revision of the index changes the 17.3reference base index, a revised reference base index shall be determined by multiplying the 17.4reference base index then applicable by the rebasing factor furnished by the Department 17.5of Commerce. If the index is superseded, the index referred to in this section is the one 17.6represented by the Department of Commerce as reflecting most accurately changes in the 17.7purchasing power of the dollar for consumers.17.8(d) The commissioner of commerce shall announce and publish:17.9(1) announce and publish on or before April 30 of each year in which dollar amounts 17.10are to change, the changes in dollar amounts required by paragraph (b); and17.11(2) announce and publish promptly after the changes occur, changes in the index 17.12required by paragraph (c) including, if applicable, the numerical equivalent of the 17.13reference base index under a revised reference base index and the designation or title 17.14of any index superseding the index.; and17.15(3) promptly notify the revisor of statutes in writing of the changes announced and 17.16published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish 17.17the changes in the next edition of Minnesota Statutes.17.18(e) A person does not violate this chapter with respect to a transaction otherwise 17.19complying with this chapter if the person relies on dollar amounts either determined 17.20according to paragraph (b) or appearing in the last publication of the commissioner 17.21announcing the then current dollar amounts.17.22    Sec. 11. Minnesota Statutes 2012, section 550.37, subdivision 6, is amended to read:17.23    Subd. 6. Tools of trade. The tools, implements, machines, instruments, office 17.24furniture, stock in trade, and library reasonably necessary in the trade, business, or 17.25profession of the debtor, not exceeding $5,000$11,500 in value.17.26    Sec. 12. Minnesota Statutes 2012, section 550.37, subdivision 10, is amended to read:17.27    Subd. 10. Insurance proceeds. All money received by, or payable to, a surviving 17.28spouse or child from insurance payable at the death of a spouse, or parent, not exceeding 17.29$20,000 $46,000. The $20,000 $46,000 exemption provided by this subdivision shall be 17.30increased by $5,000$11,500 for each dependent of the surviving spouse or child.17.31    Sec. 13. Minnesota Statutes 2012, section 550.37, subdivision 12a, is amended to read:17.32    Subd. 12a. Motor vehicles. One motor vehicle to the extent of a value not 17.33exceeding $2,000 $4,600; or one motor vehicle to the extent of a value not exceeding 18.1$20,000$46,000 that has been modified, at a cost of not less than $1,500 $3,450, to 18.2accommodate the physical disability making a disabled person eligible for a certificate 18.3authorized by section 
         169.345. 18.4    Sec. 14. Minnesota Statutes 2012, section 550.37, subdivision 23, is amended to read:18.5    Subd. 23. Life insurance aggregate interest. The debtor's aggregate interest not to 18.6exceed in value $4,000$9,200 in any accrued dividend or interest under or loan value of 18.7any unmatured life insurance contract owned by the debtor under which the insured is the 18.8debtor or an individual of whom the debtor is a dependent.18.9    Sec. 15. Minnesota Statutes 2012, section 550.37, subdivision 24, is amended to read:18.10    Subd. 24. Employee benefits. (a) The debtor's right to receive present or future 18.11payments, or payments received by the debtor, under a stock bonus, pension, profit 18.12sharing, annuity, individual retirement account, Roth IRA, individual retirement annuity, 18.13simplified employee pension, or similar plan or contract on account of illness, disability, 18.14death, age, or length of service, to the extent of the debtor's aggregate interest under all 18.15plans and contracts up to a present value of $30,000$69,000 and additional amounts under 18.16all the plans and contracts to the extent reasonably necessary for the support of the debtor 18.17and any spouse or dependent of the debtor.18.18(b) The exemptions in paragraph (a) do not apply when the debt is owed under a 18.19support order as defined in section 
         518A.26, subdivision 21. 18.20    Sec. 16. EFFECTIVE DATE.18.21Sections 1 to 15 are effective the day following final enactment.18.22ARTICLE 318.23COMMERCE AND CONSUMER PROTECTION POLICY18.24    Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a 18.25subdivision to read:18.26    Subd. 4.Actuarial data.Actuarial reports and related data of the Department of 18.27Commerce are classified under section 60A.1296.18.28    Sec. 2. Minnesota Statutes 2012, section 45.0135, is amended to read:18.2945.0135 DIVISION OF INSURANCE COMMERCE FRAUD PREVENTION18.30 BUREAU.19.1    Subd. 2a. Authorization. The commissioner may appoint peace officers, as defined 19.2in section 
         626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as 19.3defined in section 
         626.84, subdivision 1, paragraph (f), known as the Division of Insurance19.4Commerce Fraud Prevention Bureau, to conduct investigations, and to make arrests under 19.5sections 
         629.30 and 
         629.34. The jurisdiction of the law enforcement agency is limited to 19.6offenses related to insurance fraud.19.7    Subd. 2b. Duties. The Division of Insurance Commerce Fraud Prevention Bureau19.8 shall:19.9(1) review notices and reports of insurance fraud submitted by authorized insurers, 19.10their employees, and agents or producers;19.11(2) respond to notifications or complaints of suspected insurance fraud generated by 19.12other law enforcement agencies, state or federal governmental units, or any other person;19.13(3) initiate inquiries and conduct investigations when the division bureau has reason 19.14to believe that insurance fraud has been or is being committed; and19.15(4) report incidents of alleged insurance fraud disclosed by its investigations to 19.16appropriate law enforcement agencies, including, but not limited to, the attorney general, 19.17county attorneys, or any other appropriate law enforcement or regulatory agency, and shall 19.18assemble evidence, prepare charges, and otherwise assist any law enforcement authority 19.19having jurisdiction.19.20    Subd. 2c. Arrests and investigations. The initial processing of a person arrested 19.21by the Division of Insurance Commerce Fraud Prevention Bureau for an offense within 19.22its jurisdiction is the responsibility of the Division of Insurance Fraud Prevention bureau19.23 unless otherwise directed by the law enforcement agency with primary jurisdiction. 19.24Subsequent investigation shall be the responsibility of the Division of Insurance Fraud 19.25Prevention bureau unless otherwise directed by the law enforcement agency with primary 19.26jurisdiction. At the request of the primary jurisdiction, the Division of Insurance Fraud 19.27Prevention bureau may assist in a subsequent investigation being carried out by the 19.28primary jurisdiction.19.29    Subd. 2d. Policy for notice of investigations. The Division of Insurance Commerce19.30 Fraud Prevention Bureau must develop a policy for notifying the law enforcement agency 19.31with primary jurisdiction when it has initiated investigation of any person within the 19.32jurisdiction of that agency.19.33    Subd. 2e. Chief law enforcement officer. The commissioner shall appoint a peace 19.34officer employed full time to be the chief law enforcement officer and to be responsible 19.35for the management of the Division of Insurance Commerce Fraud Prevention Bureau. 19.36The chief law enforcement officer shall possess the necessary police and management 20.1experience to manage a law enforcement agency. The chief law enforcement officer 20.2may appoint, discipline, and discharge all employees of the Division of Insurance Fraud 20.3Prevention bureau. All police managerial and supervisory personnel must be full-time 20.4employees of the Division of Insurance Fraud Prevention bureau. Supervisory personnel 20.5must be on duty and available any time peace officers of the Division of Insurance Fraud 20.6Prevention bureau are on duty.20.7    Subd. 2f. Compliance. Except as otherwise provided in this section, the Division of 20.8Insurance Fraud Prevention Commerce Fraud Bureau shall comply with all statutes and 20.9administrative rules relating to the operation and management of a law enforcement agency.20.10    Subd. 3. Evidence, documentation, and related materials. If the division bureau20.11 seeks evidence, documentation, and related materials pertinent to an investigation, and the 20.12matter is located outside of this state, the division bureau may designate representatives, 20.13including officials of the state where the matter is located, to secure the matter or inspect 20.14the matter on its behalf.20.15    Subd. 4. Confidentiality and immunity. The provisions of chapter 13, including, 20.16but not limited to, section 
         13.82, apply to the classification, disclosure, and collection of 20.17data relating to the Division of Insurance Commerce Fraud Prevention Bureau.20.18    Subd. 5. Annual report on activities and cost-effectiveness. The Division of 20.19Insurance Commerce Fraud Prevention Bureau shall maintain records and information 20.20in order to produce an annual report of its activities as may be prescribed by the 20.21commissioner of commerce. The commissioner shall report annually to the house of 20.22representatives and senate standing committees with jurisdiction over insurance issues 20.23as to the activities of the division bureau and the cost-effectiveness of the programs 20.24established by the division bureau.20.25    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention 20.26account is created in the state treasury. Money received from assessments under subdivision 20.277 is deposited in the account. Money in this fund is appropriated to the commissioner of 20.28commerce for the purposes specified in this section and sections 
         60A.951 to 
         60A.956.20.29    Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of 20.30Minnesota, including surplus lines carriers, and having Minnesota earned premium the 20.31previous calendar year shall remit an assessment to the commissioner for deposit in the 20.32insurance fraud prevention account on or before June 1 of each year. The amount of the 20.33assessment shall be based on the insurer's total assets and on the insurer's total written 20.34Minnesota premium, for the preceding fiscal year, as reported pursuant to section 
         60A.13. 20.35The assessment is calculated to be an amount up to the following:

21.1Total AssetsAssessment21.2Less than $100,000,000$20021.3$100,000,000 to $1,000,000,000$75021.4Over $1,000,000,000$2,00021.5Minnesota Written PremiumAssessment21.6Less than $10,000,000$20021.7$10,000,000 to $100,000,000$75021.8Over $100,000,000$2,000

21.9For purposes of this subdivision, the following entities are not considered to be 21.10insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or 21.11township mutuals organized under chapter 67A.21.12    Subd. 8. Investigations; health-related boards. (a) The Division of Insurance21.13 Commerce Fraud Prevention Bureau may consult with the appropriate health-related board 21.14when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected 21.15of insurance fraud.21.16(b) The division bureau shall, for any conviction involving or related to insurance, 21.17send copies of all public data in its possession to the appropriate health-related licensing 21.18board.21.19    Sec. 3. Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:21.20    Subd. 2. Power to compel production of evidence. For the purpose of any 21.21investigation, hearing, proceeding, or inquiry related to the duties and responsibilities 21.22entrusted to the commissioner, the commissioner or a designated representative may 21.23administer oaths and affirmations, subpoena witnesses, compel their attendance, take 21.24evidence, and require the production of books, papers, correspondence, memoranda, 21.25agreements, or other documents or records that the commissioner considers relevant 21.26or material to the inquiry.21.27A subpoena issued pursuant to this subdivision must state that the person to whom 21.28the subpoena is directed may not disclose the fact that the subpoena was issued or the fact 21.29that the requested records have been given to law enforcement personnel except:21.30(1) insofar as the disclosure is necessary to find and disclose the records; or21.31(2) pursuant to court order.21.32    Sec. 4. Minnesota Statutes 2012, section 45.307, is amended to read:21.3345.307 EDUCATION PROVIDER.21.34    Subdivision 1.Duty to make records and data available to commissioner. A 21.35person applying for approval as an education provider must make available upon request 22.1such records and data required by the commissioner to administer the provisions and 22.2further the purposes of this chapter.22.3    Subd. 2.Responsibility for actions of coordinators and instructors.An 22.4education provider is responsible for any actions taken by one or more of its coordinators 22.5or instructors in the course of performing activities associated with license education 22.6courses provided under this chapter.22.7    Subd. 3.Responsibility for approval of coordinator.An education provider 22.8must ensure that an individual acting as a coordinator on its behalf under this chapter has 22.9received prior approval from the commissioner to act as a coordinator.22.10    Sec. 5. Minnesota Statutes 2012, section 45.43, is amended to read:22.1145.43 REPORTING REQUIREMENTS.22.12    Subdivision 1.Course completions. Required education must be reported in a 22.13manner prescribed by the commissioner within ten days of the course completion.22.14    Subd. 2.Violations and penalties.(a) Each failure to report an individual licensee's 22.15course completion in the manner prescribed by subdivision 1 constitutes a separate 22.16violation.22.17(b) The commissioner may impose a civil penalty not to exceed $500 per violation 22.18upon an education provider that violates subdivision 1.22.19    Sec. 6. [60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING 22.20DOCUMENTATION.22.21    Subdivision 1.Statement of actuarial opinion.Every property and casualty 22.22insurance company doing business in this state, unless otherwise exempted by the 22.23domiciliary commissioner, shall annually submit the opinion of an appointed actuary 22.24entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with 22.25the appropriate National Association of Insurance Commissioners (NAIC) Property and 22.26Casualty Annual Statement Instructions.22.27    Subd. 2.Actuarial opinion summary.(a) Every property and casualty insurance 22.28company domiciled in this state that is required to submit a statement of actuarial opinion 22.29shall annually submit an actuarial opinion summary, written by the company's appointed 22.30actuary. This actuarial opinion summary must be filed in accordance with the appropriate 22.31NAIC Property and Casualty Annual Statement Instructions and must be considered as a 22.32document supporting the actuarial opinion required in subdivision 1.22.33(b) A company licensed but not domiciled in this state shall provide the actuarial 22.34opinion summary upon request.23.1    Subd. 3.Actuarial report and workpapers.(a) An actuarial report and its 23.2underlying workpapers as required by the appropriate NAIC Property and Casualty 23.3Annual Statement Instructions must be prepared to support each actuarial opinion.23.4(b) If the insurance company fails to provide a supporting actuarial report and/or 23.5workpapers at the request of the commissioner or the commissioner determines that 23.6the supporting actuarial report or workpapers provided by the insurance company are 23.7otherwise unacceptable to the commissioner, the commissioner may engage a qualified 23.8actuary at the expense of the company to review the opinion and the basis for the opinion 23.9and prepare the supporting actuarial report or workpapers.23.10    Subd. 4.Liability.The appointed actuary shall not be liable for damages to any 23.11person, other than the insurance company and the commissioner, for any act, error, 23.12omission, decision, or conduct with respect to the actuary's opinion, except in cases of 23.13fraud or willful misconduct on the part of the appointed actuary.23.14EFFECTIVE DATE.This section is effective December 31, 2013.23.15    Sec. 7. [60A.1296] CONFIDENTIALITY.23.16    Subdivision 1.Actuarial opinion; public document.The statement of actuarial 23.17opinion must be provided with the annual statement in accordance with the appropriate 23.18National Association of Insurance Commissioners (NAIC) Property and Casualty Annual 23.19Statement Instructions and must be treated as a public document.23.20    Subd. 2.Supporting materials; confidential and privileged.(a) Documents, 23.21materials, or other information in the possession or control of the Department of 23.22Commerce that are considered an actuarial report, workpapers, or actuarial opinion 23.23summary provided in support of the opinion, and any other material provided by the 23.24company to the commissioner in connection with the actuarial report, workpapers, or 23.25actuarial opinion summary, are confidential data on individuals or protected nonpublic 23.26data as defined in section 13.02, shall not be subject to subpoena, and shall not be subject 23.27to discovery or admissible in evidence in any private civil action.23.28(b) This provision shall not be construed to limit the commissioner's authority to:23.29(1) release the documents to the Actuarial Board for Counseling and Discipline 23.30(ABCD) so long as the material is required for the purpose of professional disciplinary 23.31proceedings and the ABCD establishes procedures satisfactory to the commissioner for 23.32preserving the confidentiality of the documents; or23.33(2) use the documents, materials, or other information in furtherance of any 23.34regulatory or legal action brought as part of the commissioner's official duties.24.1    Subd. 3.Protections.Neither the commissioner nor any person who received 24.2the documents, materials, or other information while acting under the authority of 24.3the commissioner shall be permitted or required to testify in any private civil action 24.4concerning any confidential documents, materials, or information subject to subdivision 2.24.5    Subd. 4.Exceptions.In order to assist in the performance of the commissioner's 24.6duties, the commissioner:24.7(1) may share documents, materials, or other information, including the confidential 24.8and privileged documents, materials, or information subject to subdivision 2 with other 24.9state, federal, and international regulatory agencies; with the NAIC and its affiliates 24.10and subsidiaries; and with state, federal, and international law enforcement authorities, 24.11provided that the recipient agrees to maintain the confidentiality and privileged status 24.12of the document, material, or other information and has the legal authority to maintain 24.13confidentiality;24.14(2) may receive documents, materials, or information, including otherwise 24.15confidential and privileged documents, materials, or information, from NAIC and its 24.16affiliates and subsidiaries, and from regulatory and law enforcement officials of other 24.17foreign or domestic jurisdictions, and shall maintain as confidential or privileged any 24.18document, material, or information received with notice or the understanding that it is 24.19confidential or privileged under the laws of the jurisdiction that is the source of the 24.20document, material, or information; and24.21(3) may enter into agreements governing sharing and use of information consistent 24.22with subdivisions 2 to 4.24.23    Subd. 5.Nonwaiver.No waiver of applicable privilege or claim of confidentiality 24.24in the documents, materials, or information shall occur as a result of disclosure to the 24.25commissioner under this section or as a result of sharing as authorized in subdivision 4.24.26EFFECTIVE DATE.This section is effective December 31, 2013.24.27    Sec. 8. Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:24.28    Subdivision 1. Definition. "Company action level event" means any of the 24.29following events:24.30(1) the filing of a risk-based capital report by an insurer which indicates that:24.31(i) the insurer's total adjusted capital is greater than or equal to its regulatory action 24.32level risk-based capital but less than its company action level risk-based capital; or24.33(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater 24.34than or equal to its company action level risk-based capital but less than the product of its 24.35authorized control level risk-based capital and 2.5 3.0 and has a negative trend; or25.1(iii) if a property and casualty insurer, the insurer has total adjusted capital which 25.2is greater than or equal to its company action level risk-based capital but less than the 25.3product of its authorized control level risk-based capital and 3.0 and triggers the trend 25.4test determined in accordance with the trend test calculation included in the property 25.5and casualty risk-based capital instructions;25.6(2) the notification by the commissioner to the insurer of an adjusted risk-based 25.7capital report that indicates an event in clause (1), provided the insurer does not challenge 25.8the adjusted risk-based report under section 
         60A.66; or25.9(3) if, pursuant to section 
         60A.66, an insurer challenges an adjusted risk-based 25.10capital report that indicates the event in clause (1), the notification by the commissioner to 25.11the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.25.12EFFECTIVE DATE.This section is effective December 31, 2013.25.13    Sec. 9. Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision 25.14to read:25.15    Subd. 2a.Criminal history record check; fingerprints.(a) An applicant for a 25.16license must:25.17(1) consent to a criminal history record check;25.18(2) submit a fingerprint card in a form acceptable to the commissioner; and25.19(3) pay the fee required to perform criminal history record checks with the Minnesota 25.20Bureau of Criminal Apprehension and the Federal Bureau of Investigation.25.21(b) The commissioner may contract for the collection and transmission of 25.22fingerprints required under this chapter and may order the fee for collecting and 25.23transmitting fingerprints to be payable directly to the contractor by the applicant. The 25.24commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.25.25(c) The commissioner shall submit the applicant's fingerprints, consent, and 25.26the required fee to the superintendent of the Bureau of Criminal Apprehension. The 25.27superintendent shall perform a check of the state criminal history repository and is 25.28authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation 25.29to obtain the national criminal history record. The superintendent shall return the results 25.30of the state and national criminal history records checks to the commissioner.25.31(d) This subdivision applies to an applicant for an initial license or a renewal license.25.32EFFECTIVE DATE.This section is effective January 1, 2015, and applies to 25.33persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that 25.34date who were not previously fingerprinted in compliance with the terms of this subdivision.26.1    Sec. 10. Minnesota Statutes 2012, section 82B.094, is amended to read:26.282B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.26.3(a) A certified residential real property appraiser or a certified general real property 26.4appraiser, in good standing, may engage a trainee real property appraiser to assist in the 26.5performance of real estate appraisals, provided that the certified residential real property 26.6appraiser or a certified general real property appraiser:26.7(1) has been licensed in good standing as either a certified residential real property 26.8appraiser or a certified general real property appraiser for a total of at least three years;26.9(2) has completed a course that is specifically oriented to the requirements and 26.10responsibilities of supervisory appraisers and trainee appraisers;26.11(3) has not been the subject of any license or certificate suspension or revocation or 26.12has not been prohibited from supervising activities in this state or any other state within 26.13the previous two years;26.14(2) (4) has no more than three trainee real property appraisers working under 26.15supervision at any one time;26.16(3) (5) actively and personally supervises the trainee real property appraiser, which 26.17includes ensuring that research of general and specific data has been adequately conducted 26.18and properly reported, application of appraisal principles and methodologies has been 26.19properly applied, that the analysis is sound and adequately reported, and that any analyses, 26.20opinions, or conclusions are adequately developed and reported so that the appraisal 26.21report is not misleading;26.22(4) (6) discusses with the trainee real property appraiser any necessary and 26.23appropriate changes that are made to a report, involving any trainee appraiser, before it is 26.24transmitted to the client. Changes not discussed with the trainee real property appraiser 26.25that are made by the supervising appraiser must be provided in writing to the trainee real 26.26property appraiser upon completion of the appraisal report;26.27(5) (7) accompanies the trainee real property appraiser on the inspections of the 26.28subject properties and drive-by inspections of the comparable sales on all appraisal 26.29assignments for which the trainee will perform work until the trainee appraiser is 26.30determined to be competent, in accordance with the competency rule of USPAP for the 26.31property type;26.32(6) (8) accepts full responsibility for the appraisal report by signing and certifying 26.33that the report complies with USPAP; and26.34(7) (9) reviews and signs the trainee real property appraiser's appraisal report or 26.35reports or if the trainee appraiser is not signing the report, states in the appraisal the name 26.36of the trainee and scope of the trainee's significant contribution to the report.27.1(b) The supervising appraiser must review and sign the applicable experience log 27.2required to be kept by the trainee real property appraiser.27.3(c) The supervising appraiser must notify the commissioner within ten days when 27.4the supervision of a trainee real property appraiser has terminated or when the trainee 27.5appraiser is no longer under the supervision of the supervising appraiser.27.6(d) The supervising appraiser must maintain a separate work file for each appraisal 27.7assignment.27.8(e) The supervising appraiser must verify that any trainee real property appraiser that 27.9is subject to supervision is properly licensed and in good standing with the commissioner.27.10    Sec. 11. Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:27.11    Subd. 2. Components on or after January 1, 2009 Conformance to Appraiser 27.12Qualifications Board criteria.(a) On or after January 1, 2009, an applicant for a class 27.13of license must document that the applicant has met the education, experience, and 27.14examination components in effect after January 1, 2008.27.15(b) Qualifications for all levels of licensing must conform to the Real Property 27.16Qualification Criteria established by the Appraisal Qualifications Board for implementation 27.17effective January 1, 2008 2015.27.18    Sec. 12. Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:27.19    Subdivision 1. Generally. (a) An applicant for a license must pass an examination 27.20conducted by the commissioner. The examinations must be of sufficient scope to establish 27.21the competency of the applicant to act as a real estate appraiser and must conform 27.22with the current National Uniform Exam Content Outlines published by the Appraiser 27.23Qualifications Board.27.24(b) A passing grade for a real estate appraiser licensing examination must be the cut 27.25score defined by the Appraiser Qualifications Board criteria.27.26(c) To qualify for a license as a trainee real property appraiser, an applicant must 27.27pass a current trainee real property appraiser examination. The examination must test the 27.28applicant's knowledge of appraisal terms, principles, theories, and ethics as provided 27.29in this chapter.27.30(d) To qualify for a license as a licensed real property appraiser, an applicant must 27.31pass a current uniform licensed real property appraiser examination approved by the 27.32Appraiser Qualifications Board. The examination must test the applicant's knowledge of 27.33appraisal terms, principles, theories, and ethics as provided in this chapter.28.1(e) To qualify for a license as a certified residential real property appraiser, an 28.2applicant must pass a current uniform certified residential real property appraiser 28.3examination approved by the Appraiser Qualifications Board. The examination must test 28.4the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided 28.5in this chapter.28.6(f) To qualify for a license as a certified general real property appraiser, an applicant 28.7must pass a current uniform certified general real property appraiser examination approved 28.8by the Appraiser Qualifications Board. The examination must test the applicant's 28.9knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.28.10(g) An applicant must complete the applicable education prerequisites in section 28.1182B.13 and the experience requirements in section 82B.14 before the applicant takes the 28.12examination required under this section.28.13EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an 28.14applicant for a license on or after that date.28.15    Sec. 13. Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:28.16    Subdivision 1. Trainee real property appraiser or licensed real property 28.17appraiser.(a) As a prerequisite for licensing as a trainee real property appraiser or 28.18licensed real property appraiser, an applicant must present evidence satisfactory to the 28.19commissioner that the person has successfully completed:28.20(1) at least 90 classroom 75 hours of prelicense courses approved by the 28.21commissioner. The courses must consist Fifteen of the 75 hours must include successful 28.22completion of general real estate appraisal principles and the 15-hour national USPAP 28.23course; and28.24(2) in addition to the required hours under clause (1), a course that is specifically 28.25oriented to the requirements and responsibilities of supervisory appraisers and trainee 28.26appraisers.28.27(a) After January 1, 2008, a trainee real property appraiser applicant must present 28.28evidence satisfactory to the commissioner that the person has successfully completed at 28.29least 75 hours of prelicense courses approved by the commissioner.28.30(b) After January 1, 2008, a licensed real property appraiser applicant must present 28.31evidence satisfactory to the commissioner that the person has successfully completed 28.32at least 150 hours of prelicense courses approved by the commissioner All qualifying 28.33education must be completed within the five-year period prior to the date of submission of 28.34a trainee real property appraiser license application.29.1    Sec. 14. Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision 29.2to read:29.3    Subd. 1a.Licensed real property appraiser.As a prerequisite for licensing as a 29.4licensed real property appraiser, an applicant must present evidence satisfactory to the 29.5commissioner that the person has successfully completed:29.6(1) at least 150 hours of prelicense courses approved by the commissioner. The 29.7courses must consist of 75 hours of general real estate appraisal principles and the 15-hour 29.8national USPAP course; and29.9(2) an associate degree or higher from an accredited college or university. In lieu of 29.10the required degree, the applicant may present satisfactory documentation of successful 29.11completion of 30 semester credit hours of instruction from an accredited college or 29.12university.29.13    Sec. 15. Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:29.14    Subd. 4. Certified residential real property appraiser. As a prerequisite for 29.15licensing as a certified residential real property appraiser, an applicant must present 29.16evidence satisfactory to the commissioner that the person has successfully completed:29.17(1) at least 120 classroom 200 hours of prelicense courses approved by the 29.18commissioner, with particular emphasis on the appraisal of one to four unit residential 29.19properties. Fifteen of the 120 200 hours must include successful completion of the 29.2015-hour national USPAP course.; and29.21After January 1, 2008, A certified residential real property appraiser applicant 29.22must present evidence satisfactory to the commissioner that the person has successfully 29.23completed:29.24(1) 200 hours of prelicense courses approved by the commissioner; and29.25(2) an associate a bachelor's degree or higher from an accredited college or 29.26university. In lieu of the required degree the applicant may present satisfactory 29.27documentation of completion of 21 semester credit hours from an accredited college or 29.28university covering the following subject matter courses: English composition; principles 29.29of economics (micro or macro); finance; algebra, geometry, or higher mathematics; 29.30statistics; computer science; and business or real estate law. If an applicant has completed 29.31education requirements before January 1, 2008, no college degree is required.29.32EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an 29.33applicant for a license on or after that date.29.34    Sec. 16. Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:30.1    Subd. 5. Certified general real property appraiser. As a prerequisite for 30.2licensing as a certified general real property appraiser, an applicant must present evidence 30.3satisfactory to the commissioner that the person has successfully completed:30.4(1) at least 180 classroom 300 hours of prelicense courses approved by the 30.5commissioner, with particular emphasis on the appraisal of nonresidential properties. 30.6Fifteen of the 180 300 hours must include successful completion of the 15-hour national 30.7USPAP course.; and30.8After January 1, 2008, A certified general real property appraiser applicant must 30.9present evidence satisfactory to the commissioner that the person has successfully 30.10completed:30.11(1) 300 hours of prelicense courses approved by the commissioner; and30.12(2) a bachelor's degree or higher from an accredited college or university. In lieu of 30.13the required degree the applicant may present satisfactory documentation of completion of 30.1430 semester credit hours from an accredited college or university covering the following 30.15subject matters courses: English composition; micro economics; macro economics; 30.16finance; algebra, geometry, or higher mathematics; statistics; computer science; business 30.17or real estate law; and two elective courses in accounting, geography, ag-economics, 30.18business management, or real estate. If an applicant has complete education requirements 30.19before January 1, 2008, no college degree is required.30.20EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an 30.21applicant for a license on or after that date.30.22    Sec. 17. Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:30.23    Subd. 8. Appraiser prelicense education.(a) Credit toward the qualifying 30.24education requirements of this section may also be obtained via the completion of a 30.25degree in real estate from an accredited degree-granting college or university approved 30.26by the Association to Advance Collegiate Schools of Business, or a regional or national 30.27accreditation agency recognized by the United States Secretary of Education, provided 30.28that the college or university has had its curriculum reviewed and approved by the 30.29Appraiser Qualifications Board.30.30    (b) Notwithstanding section 
         45.22, a college or university real estate course may be 30.31approved retroactively by the commissioner for appraiser prelicense education credit if:30.32    (1) the course was offered by a college or university physically located in Minnesota;30.33    (2) the college or university was an approved education provider at the time the 30.34course was offered; and31.1    (3) the commissioner's approval is made to the same extent in terms of courses and 31.2hours and with the same time limits as those specified by the Appraiser Qualifications 31.3Board.31.4    Sec. 18. Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:31.5    Subd. 2. Service of notice, order, or other document from commission.  Service of 31.6all notices, orders, and other documents by the commission may be made by mail, personal 31.7delivery, or electronic service upon any person or firm, or upon the president, general 31.8manager, or other proper executive officer of any corporation interested. If any party has 31.9appeared by attorney, such service must be made upon the attorney. Notwithstanding 31.10section 
         14.62, orders and decisions may be served by mail, by personal delivery, or by 31.11electronic service. The commission may provide electronic service to any person who has 31.12provided an electronic address to the commission for service purposes. For purposes of this 31.13section, the term "person" includes a natural person or an organization, whether for profit 31.14or not for profit. Regulated utilities and state agencies must provide an electronic address 31.15for electronic service purposes and must accept electronic service as official service.31.16    Sec. 19. Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:31.17    Subd. 4. Service by a party, participant, or other interested person. When an 31.18applicable statute or commission rule requires service of a filing or other document by a 31.19party, participant, or other interested person upon persons on a service list maintained by the 31.20commission, service may be made by personal delivery, mail, or electronic service, except 31.21that electronic service may only be made upon persons on the official service list who have 31.22previously agreed in writing to accept electronic service at an electronic address provided 31.23to the commission for electronic service purposes. This section does not apply to the extent 31.24another provision of this chapter or chapter 216A requires a specific method of service.31.25 Regulated utilities and state agencies must provide an electronic address to the commission 31.26for electronic service purposes and agree to accept electronic service as official service.31.27    Sec. 20. Minnesota Statutes 2012, section 216B.18, is amended to read:31.28216B.18 SERVICE OF NOTICE.31.29Service of notice of all hearings, investigations, and proceedings pending before 31.30the commission and of complaints, reports, orders, and other documents must be 31.31made personally, by electronic service as provided in section 
         216.17, or by mail as the 31.32commission may direct. Regulated utilities and state agencies must provide an electronic 32.1address to the commission for electronic service purposes and agree to accept electronic 32.2service as official service.32.3    Sec. 21. Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:32.4    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 32.5section.32.6(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located 32.7in the Department of Public Safety and managed by the Bureau of Criminal Apprehension. 32.8A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.32.9(c) "Law enforcement agency" means a Minnesota municipal police department, 32.10the Metropolitan Transit Police, the Metropolitan Airports Police, the University of 32.11Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit, 32.12a Minnesota county sheriff's department, the Enforcement Division of the Department of 32.13Natural Resources, the Commerce Fraud Bureau, the Bureau of Criminal Apprehension, 32.14or the Minnesota State Patrol.32.15    Sec. 22. REVISOR INSTRUCTION.32.16Consistent with the name change in section 2, the revisor of statutes shall change 32.17the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud 32.18Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.32.19    Sec. 23.  REPEALER.32.20    Subdivision 1.Petroleum tank release cleanup; PVC piping at residential 32.21locations.Minnesota Statutes 2012, section 115C.09, subdivision 3k, is repealed.32.22    Subd. 2.Agricultural storage tank removal.Laws 2000, chapter 488, article 32.233, section 37, is repealed.32.24    Subd. 3.Prior appraiser qualification requirements.Minnesota Statutes 2012, 32.25section 82B.095, subdivision 1, is repealed.