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SF 1045

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 10:04am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to commerce; regulating continuing education requirements, pharmacy
benefit managers, insurance coverages, adjusters, and appraisers; amending
Minnesota Statutes 2010, sections 45.011, subdivision 1; 45.25, by adding
subdivisions; 60A.23, subdivision 8; 62A.095, subdivision 1; 62A.318,
subdivision 17; 62E.14, subdivision 3, by adding a subdivision; 62L.03,
subdivision 3; 72B.041, subdivision 5; 82.641, subdivision 1; 82B.11,
subdivision 6; 82B.13, by adding a subdivision; 82B.14; 82C.08, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapters 45; 72B; repealing
Minnesota Statutes 2010, section 45.25, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 45.011, subdivision 1, is amended to read:


Subdivision 1.

Scope.

As used in chapters 45 to new text begin80C, 80E to new text end83, 155A, 332,
332A, 332B, 345, and 359, and sections 123A.21, subdivision 7, paragraph (a), clause
(23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.61 to 386.78; 471.617;
and 471.982, unless the context indicates otherwise, the terms defined in this section
have the meanings given them.

Sec. 2.

Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Classroom course. new text end

new text begin "Classroom course" means an educational process
based on no geographical separation of instructor and learner.
new text end

Sec. 3.

Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to
read:


new text begin Subd. 5a. new text end

new text begin Distance learning course. new text end

new text begin "Distance learning course" means an
education process based on the geographical separation of instructor and learner. This
includes, but is not limited to:
new text end

new text begin (1) an interactive Internet course; and
new text end

new text begin (2) a course taught live by the instructor via the Internet, video, or other electronic
means.
new text end

Sec. 4.

Minnesota Statutes 2010, section 45.25, is amended by adding a subdivision to
read:


new text begin Subd. 14. new text end

new text begin Self-study course. new text end

new text begin "Self-study course" means a distance learning course
that is not entirely taught by the instructor live via the Internet, video, or other electronic
means.
new text end

Sec. 5.

new text begin [45.304] TIME AND VERIFICATION REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Maximum hours allowed per day. new text end

new text begin A student may not receive credit
for more than eight hours of continuing education in one day, whether the hours are for a
classroom course, a distance learning course, or any combination of the two. No course,
whether a classroom course, a distance learning course, or a combination of the two, shall
be offered to any one student for longer than eight hours in one day.
new text end

new text begin Subd. 2. new text end

new text begin Breaks. new text end

new text begin A classroom course, or a distance learning course taught live by
the instructor via the Internet, video, or other electronic means, may include a break of up
to ten minutes each hour. A break cannot occur at the end of the class. Breaks must not be
accumulated in order to dismiss the class early.
new text end

new text begin Subd. 3. new text end

new text begin Verifiable self-study courses. new text end

new text begin A self-study course must not be approved
unless it is objectively verifiable that:
new text end

new text begin (1) it includes a closed-book, end-of-course examination; and
new text end

new text begin (2) successful completion of the end-of-course examination can be objectively
documented.
new text end

Sec. 6.

Minnesota Statutes 2010, section 60A.23, subdivision 8, is amended to read:


Subd. 8.

Self-insurance or insurance plan administrators who are vendors
of risk management services.

(1) Scope. This subdivision applies to any vendor of
risk management services and to any entity which administers, for compensation, a
self-insurance or insurance plan. This subdivision does not apply (a) to an insurance
company authorized to transact insurance in this state, as defined by section 60A.06,
subdivision 1, clauses (4) and (5)
; (b) to a service plan corporation, as defined by section
62C.02, subdivision 6; (c) to a health maintenance organization, as defined by section
62D.02, subdivision 4; (d) to an employer directly operating a self-insurance plan for
its employees' benefits; (e) to an entity which administers a program of health benefits
established pursuant to a collective bargaining agreement between an employer, or group
or association of employers, and a union or unions; or (f) to an entity which administers a
self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance
to the plan and if the licensed insurer has appointed the entity administering the plan as
one of its licensed agents within this state.

(2) Definitions. For purposes of this subdivision the following terms have the
meanings given them.

(a) "Administering a self-insurance or insurance plan" means (i) processing,
reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii)
otherwise providing necessary administrative services in connection with the operation of
a self-insurance or insurance plan.

(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2.

(c) "Entity" means any association, corporation, partnership, sole proprietorship,
trust, or other business entity engaged in or transacting business in this state.

(d) "Self-insurance or insurance plan" means a plan for the benefit of employees or
members of an association providing life, medical or hospital care, accident, sickness or
disability insurance, or pharmacy benefits, or a plan providing liability coverage for any
other risk or hazard, which is or is not directly insured or provided by a licensed insurer,
service plan corporation, or health maintenance organization.

new text begin (e) "Pharmacy benefit manager" means a third-party administrator under contract to
administer drug benefit programs for self-insurance or insurance plans.
new text end

deleted text begin (e)deleted text endnew text begin (f)new text end "Vendor of risk management services" means an entity providing for
compensation actuarial, financial management, accounting, legal or other services for the
purpose of designing and establishing a self-insurance or insurance plan for an employer.

(3) License. deleted text beginNodeleted text end new text beginA new text endvendor of risk management services deleted text beginordeleted text endnew text begin, annew text end entity administering a
self-insurance or insurance plan deleted text beginmaydeleted text endnew text begin, or a pharmacy benefit manager shall notnew text end transact
this business in this state unless it is licensed to do so by the commissioner. An applicant
for a license shall state in writing the type of activities it seeks authorization to engage in
and the type of services it seeks authorization to provide. The license may be granted only
when the commissioner is satisfied that the entity possesses the necessary organization,
background, expertise, and financial integrity to supply the services sought to be offered.
The commissioner may issue a license subject to restrictions or limitations upon the
authorization, including the type of services which may be supplied or the activities which
may be engaged in. The license fee is $1,500 for the initial application and $1,500 for
each three-year renewal. All licenses are for a period of three years.

(4) Regulatory restrictions; powers of the commissioner. To assure that
self-insurance or insurance plans are financially solvent, are administered in a fair and
equitable fashion, and are processing claims and paying benefits in a prompt, fair,
and honest manner, vendors of risk management services and entities administering
insurance or self-insurance plans are subject to the supervision and examination by the
commissioner. Vendors of risk management services, entities administering insurance or
self-insurance plans, and insurance or self-insurance plans established or operated by
them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu
of an unlimited guarantee from a parent corporation for a vendor of risk management
services or an entity administering insurance or self-insurance plans, the commissioner
may accept a surety bond in a form satisfactory to the commissioner in an amount equal to
120 percent of the total amount of claims handled by the applicant in the prior year. If at
any time the total amount of claims handled during a year exceeds the amount upon which
the bond was calculated, the administrator shall immediately notify the commissioner.
The commissioner may require that the bond be increased accordingly.

deleted text begin Nodeleted text end new text beginA new text endcontract entered into after July 1, 2001, between a licensed vendor of risk
management services and a group authorized to self-insure for workers' compensation
liabilities under section 79A.03, subdivision 6, deleted text beginmaydeleted text end new text beginshall not new text endtake effect until it has been
filed with the commissioner, and either (1) the commissioner has approved it or (2) 60
days have elapsed and the commissioner has not disapproved it as misleading or violative
of public policy.

(5) Rulemaking authority. To carry out the purposes of this subdivision, the
commissioner may adopt rules pursuant to sections 14.001 to 14.69. These rules may:

(a) establish reporting requirements for administrators of insurance or self-insurance
plans;

(b) establish standards and guidelines to assure the adequacy of financing, reinsuring,
and administration of insurance or self-insurance plans;

(c) establish bonding requirements or other provisions assuring the financial integrity
of entities administering insurance or self-insurance plans; or

(d) establish other reasonable requirements to further the purposes of this
subdivision.

Sec. 7.

Minnesota Statutes 2010, section 62A.095, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

(a) deleted text beginNodeleted text endnew text begin Anew text end health plan deleted text beginshalldeleted text endnew text begin may notnew text end be offered, sold,
or issued to a resident of this state, or to cover a resident of this state, unless the health
plan complies with subdivision 2.

(b) Health plans providing benefits under health care programs administered by the
commissioner of human services are not subject to the limits described in subdivision
2 but are subject to the right of subrogation provisions under section 256B.37 and the
lien provisions under section 256.015; 256B.042; 256D.03, subdivision 8; or 256L.03,
subdivision 6
.

For purposes of this section, "health plan" includes coverage that is excluded under
section 62A.011, subdivision 3, clauses (4), new text begin(6), new text end(7), new text begin(8), (9), new text endand (10).

Sec. 8.

Minnesota Statutes 2010, section 62A.318, subdivision 17, is amended to read:


Subd. 17.

Types of plans.

Medicare select policies and certificates must deleted text beginbe either a
basic plan or an extended basic plan
deleted text endnew text begin provide the coverages specified in sections 62A.315
to 62A.3165
new text end. Before a Medicare select policy or certificate is sold or issued in this state,
the applicant must be provided with an explanation of coverage for deleted text beginboth a Medicare select
basic and a Medicare select extended basic policy or certificate
deleted text endnew text begin each of the coverages
specified in sections 62A.315 to 62A.3165
new text end and must be provided with the opportunity of
purchasing deleted text begineither a Medicare select basic or a Medicare select extended basic policydeleted text endnew text begin such
coverage
new text end. The basic plan may also include any of the optional benefit riders authorized by
section 62A.316. Preventive care provided by Medicare select policies or certificates must
be provided as set forth in section 62A.315 or 62A.316, except that the benefits are as
defined in chapter 62D.

Sec. 9.

Minnesota Statutes 2010, section 62E.14, subdivision 3, is amended to read:


Subd. 3.

Preexisting conditions.

deleted text beginNodeleted text endnew text begin Anew text end person who obtains coverage pursuant to
this section deleted text beginshall bedeleted text endnew text begin is notnew text end covered for any preexisting condition during the first six months
of coverage under the state plan if the person was diagnosed or treated for that condition
during the 90 days immediately preceding the date the application was received by the
writing carrier, except as provided under subdivisionsnew text begin 3a,new text end 4, 4a, 4b, 4c, 4d,new text begin 4e,new text end 5, 6, and 7
and section 62E.18.

Sec. 10.

Minnesota Statutes 2010, section 62E.14, is amended by adding a subdivision
to read:


new text begin Subd. 4f. new text end

new text begin Waiver of preexisting conditions; persons covered by a
community-based health care coverage program.
new text end

new text begin A person may enroll in the
comprehensive plan, with a waiver of preexisting condition limitation in subdivision
3, if the following requirements are met:
new text end

new text begin (1) the person was formerly enrolled in a community-based health care coverage
program under section 62Q.80;
new text end

new text begin (2) the person is a Minnesota resident; and
new text end

new text begin (3) the person submits an application for coverage that is received by the writing
carrier no later than 90 days after coverage under the community-based health care
program is terminated. For purposes of this clause, termination of coverage includes
exceeding the maximum lifetime or annual benefit on existing coverage, or moving out of
an area served by the program.
new text end

Sec. 11.

Minnesota Statutes 2010, section 62L.03, subdivision 3, is amended to read:


Subd. 3.

Minimum participation and contribution.

(a) A small employer that has
at least 75 percent of its eligible employees who have not waived coverage participating in
a health benefit plan and that contributes at least 50 percent toward the cost of coverage of
each eligible employee must be guaranteed coverage on a guaranteed issue basis from
any health carrier participating in the small employer market. The participation level
of eligible employees must be determined at the initial offering of coverage and at the
renewal date of coverage. A health carrier must not increase the participation requirements
applicable to a small employer at any time after the small employer has been accepted for
coverage. For the purposes of this subdivision, waiver of coverage includes only waivers
due to: (1) coverage under another group health plan; (2) coverage under Medicare Parts
A and B; new text beginor new text end(3) deleted text begincoverage under MCHA permitted under section 62E.141; or (4)deleted text end coverage
under medical assistance under chapter 256B or general assistance medical care under
chapter 256D.

(b) If a small employer does not satisfy the contribution or participation requirements
under this subdivision, a health carrier may voluntarily issue or renew individual health
plans, or a health benefit plan which must fully comply with this chapter. A health carrier
that provides a health benefit plan to a small employer that does not meet the contribution
or participation requirements of this subdivision must maintain this information in its files
for audit by the commissioner. A health carrier may not offer an individual health plan,
purchased through an arrangement between the employer and the health carrier, to any
employee unless the health carrier also offers the individual health plan, on a guaranteed
issue basis, to all other employees of the same employer. An arrangement permitted under
section 62L.12, subdivision 2, paragraph (k), is not an arrangement between the employer
and the health carrier for purposes of this paragraph.

(c) Nothing in this section obligates a health carrier to issue coverage to a small
employer that currently offers coverage through a health benefit plan from another health
carrier, unless the new coverage will replace the existing coverage and not serve as one
of two or more health benefit plans offered by the employer. This paragraph does not
apply if the small employer will meet the required participation level with respect to
the new coverage.

Sec. 12.

Minnesota Statutes 2010, section 72B.041, subdivision 5, is amended to read:


Subd. 5.

Exceptions.

(a) An individual who applies for an adjuster license in this
state who is or was licensed in another state for the same lines of authority based on
an adjuster examination is not required to complete a prelicensing examination. This
exemption is only available if the person is currently licensed in another state or if that
state license has expired and the application is received by this state within 90 days of
expiration. The applicant must provide certification from the other state that the applicant's
license is currently in good standing or was in good standing at the time of expiration
or certification from the other state that its producer database records, maintained by
the NAIC, its affiliates, or its subsidiaries, indicate that the applicant or the applicant's
company is or was licensed in good standing. The certification must be of a license with
the same line of authority for which the individual has applied.

(b) A person licensed as an adjuster in another state based on an adjuster examination
who establishes legal residency in this state must make application within 90 days to
become a resident adjuster licensee pursuant to this section, with the exception that no
prelicensing examination is required of this person.

(c) deleted text beginA person who has held a license of any given class or in any field or fields within
three years prior to the application shall be entitled to a renewal of the license in the same
class or in the same fields without taking an examination.
deleted text end

deleted text begin (d)deleted text end A person applying for a license as a crop hail adjuster shall not be required to
comply with the requirements of subdivision 4.

new text begin (d) A person applying for the crop line of authority who has satisfactorily completed
the National Crop Insurance Services Crop Adjuster Proficiency Program or the loss
adjustment training curriculum and competency testing required by the Federal Crop
Insurance Corporation Standard Reinsurance Agreement is exempt from the requirements
of subdivision 4.
new text end

Sec. 13.

new text begin [72B.055] MULTIPLE PERIL CROP INSURANCE ADJUSTMENTS.
new text end

new text begin A licensed crop hail adjuster who has satisfactorily completed the loss adjustment
training curriculum and competency testing required by the Federal Crop Insurance
Corporation (FCIC) Standard Reinsurance Agreement may act as an adjuster in this state
in regard to Multiple Peril Crop Insurance policies regulated by the FCIC.
new text end

Sec. 14.

Minnesota Statutes 2010, section 82.641, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginGenerallydeleted text endnew text begin License requirednew text end.

new text beginA person shall not act as a real estate
closing agent unless licensed as provided in this section.
new text endThe commissioner shall issue
a license as a closing agent to a person who qualifies for the license under the terms
of this chapter.

Sec. 15.

Minnesota Statutes 2010, section 82B.11, subdivision 6, is amended to read:


Subd. 6.

Temporary practice.

(a) The commissioner shall issue a license for
temporary practice as a real estate appraiser under subdivision 3, 4, or 5 to a person
certified or licensed by another state if:

(1) the property to be appraised is part of a federally related transaction and the
person is licensed to appraise property limited to the same transaction value or complexity
provided in subdivision 3, 4, or 5;

(2) the appraiser's business is of a temporary nature; and

(3) the appraiser registers with the commissioner to obtain a temporary license
before conducting appraisals within the state.

(b) The term of a temporary practice license is the lesser of:

(1) the time required to complete the assignment; or

(2) deleted text beginsixdeleted text endnew text begin 12new text end monthsdeleted text begin, with one extension alloweddeleted text end.

deleted text begin The appraiser may request one extension of no more than six months on a form
provided by the commissioner.
deleted text end If more than 12 months are necessary to complete the
assignment, a new temporary application and fee is required.

Sec. 16.

Minnesota Statutes 2010, section 82B.13, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Appraiser prelicense education. new text end

new text begin Notwithstanding section 45.22, a college
or university real estate course may be approved retroactively by the commissioner for
appraiser prelicense education credit if:
new text end

new text begin (1) the course was offered by a college or university physically located in Minnesota;
new text end

new text begin (2) the college or university was an approved education provider at the time the
course was offered; and
new text end

new text begin (3) the commissioner's approval is made to the same extent in terms of courses and
hours and with the same time limits as those specified by the Appraiser Qualifications
Board.
new text end

Sec. 17.

Minnesota Statutes 2010, section 82B.14, is amended to read:


82B.14 EXPERIENCE REQUIREMENT.

(a) As a prerequisite for licensing as a licensed real property appraiser, an applicant
must present evidence satisfactory to the commissioner that the person has obtained 2,000
hours of experience in real property appraisal obtained in no fewer than 12 months.

As a prerequisite for licensing as a certified residential real property appraiser, an
applicant must present evidence satisfactory to the commissioner that the person has
obtained 2,500 hours of experience in real property appraisal obtained in no fewer than
24 months.

As a prerequisite for licensing as a certified general real property appraiser, an
applicant must present evidence satisfactory to the commissioner that the person has
obtained 3,000 hours of experience in real property appraisal obtained in no fewer than 30
months. At least 50 percent, or 1,500 hours, must be in nonresidential appraisal work.

(b) Each applicant for license under section 82B.11, subdivision 3, 4, or 5, shall
give under oath a detailed listing of the real estate appraisal reports or file memoranda
for which experience is claimed by the applicant. Upon request, the applicant shall make
available to the commissioner for examination, a sample of appraisal reports that the
applicant has prepared in the course of appraisal practice.

deleted text begin (c) Notwithstanding section 45.22, a college or university real estate course may be
approved retroactively by the commissioner for appraiser prelicense education credit if:
deleted text end

deleted text begin (1) the course was offered by a college or university physically located in Minnesota;
deleted text end

deleted text begin (2) the college or university was an approved education provider at the time the
course was offered;
deleted text end

deleted text begin (3) the commissioner's approval is made to the same extent in terms of courses and
hours and with the same time limits as those specified by the Appraiser Qualifications
Board.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end Applicants may not receive credit for experience accumulated while
unlicensed, if the experience is based on activities which required a license under this
section.

deleted text begin (e)deleted text endnew text begin (d)new text end Experience for all classifications must be obtained after January 30, 1989,
and must be USPAP compliant.

Sec. 18.

Minnesota Statutes 2010, section 82C.08, subdivision 2, is amended to read:


Subd. 2.

Amounts.

(a) Each application for initial licensure shall be accompanied
by a fee of $5,000.

(b) Each application for renewal of the license must be received prior to deleted text beginthe two-yeardeleted text endnew text begin
its
new text end expiration deleted text beginperioddeleted text end with the renewal fee of $2,500.

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 45.25, subdivision 3, new text end new text begin is repealed.
new text end