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SF 1815

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to commerce; modifying various requirements
for licensees of the Department of Commerce; amending
Minnesota Statutes 2004, sections 60K.36, subdivision
2; 60K.37, subdivision 1; 60K.38, subdivision 1;
60K.39, subdivision 3; 82.31, subdivision 5; 82B.02,
by adding a subdivision; 82B.10, subdivision 4;
82B.11, subdivision 6; 82B.13, subdivisions 1, 3, 4,
5; 82B.14; 82B.19, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapters 45; 82B;
repealing Minnesota Statutes 2004, section 82B.221;
Minnesota Rules, part 2808.2200.

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

Section 1.

new text begin [45.21] APPLICATION FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Fee refunds. new text end

new text begin Refunds must not be given
other than for overpayment of fees. Overpayment means any
payment of money in excess of a statutory fee or for a license
for which a person does not qualify. An overpayment of a fee
must be returned upon proper application by the applicant. If
an applicant requests a refund of an overpayment, the request
must be received by the commissioner within six months of the
date of deposit or the overpayment will be forfeited. An
overpayment of a fee may be returned to the person entitled to
it upon determination by the commissioner that an overpayment
was made.
new text end

new text begin Subd. 2. new text end

new text begin Withdrawal of application. new text end

new text begin An application that
is incomplete is considered withdrawn if the applicant does not
submit a complete application within six months of the date the
application was received. The application fee is nonrefundable
if an application is withdrawn according to this subdivision.
new text end

Sec. 2.

new text begin [45.22] LICENSE EDUCATION.
new text end

new text begin (a) License education courses must be approved in advance
by the commissioner. Each sponsor who offers a license
education course must have at least one coordinator, approved by
the commissioner, who is responsible for supervising the
educational program and assuring compliance with all laws and
rules. "Sponsor" means any person or entity offering approved
education.
new text end

new text begin (b) For coordinators with an initial approval date before
the effective date of this provision, approval will expire on
December 31, 2005. For courses with an initial approval date on
or before December 31, 2000, approval will expire on April 30,
2006. For courses with an initial approval date after January
1, 2001, but before the effective date of this provision,
approval will expire on April 30, 2007.
new text end

Sec. 3.

Minnesota Statutes 2004, section 60K.36,
subdivision 2, is amended to read:


Subd. 2.

Examination not required.

A resident individual
applying for a limited lines credit insurance, title insurance,
travel baggage insurance, new text beginmobile telephone insurance,new text endor bail
bonds license is not required to take a written examination.

Sec. 4.

Minnesota Statutes 2004, section 60K.37,
subdivision 1, is amended to read:


Subdivision 1.

Resident insurance producer.

A person is
a resident of this state if that person resides in this state or
the principal place of business of that person is maintained in
this state. Application for a license claiming residency in
this state constitutes an election of residency in this state.
A license issued upon an application claiming residency in this
state is void if the licensee, while holding a resident license
in this state, obtains a resident license in, or claims to be a
resident of, any other state or jurisdiction or if the licensee
ceases to be a resident of this state. deleted text beginHowever, if the
applicant is a resident of a community or trade area, the border
of which is contiguous with the state line of this state, the
applicant may qualify for a resident license in this state and
at the same time hold a resident license from the contiguous
state.
deleted text end

Sec. 5.

Minnesota Statutes 2004, section 60K.38,
subdivision 1, is amended to read:


Subdivision 1.

Issuance.

(a) Unless denied a license
under section 60K.43, a person who has met the requirements of
sections 60K.36 and 60K.37 must be issued an insurance producer
license. An insurance producer may receive qualification for a
license in one or more of the lines of authority in paragraphs
(b) and (c).

(b) An individual insurance producer may receive
qualification for a license in one or more of the following
major lines:

(1) life insurance: coverage on human lives including
benefits of endowment and annuities, and may include benefits in
the event of death or dismemberment by accident and benefits for
disability income;

(2) accident and health or sickness insurance: coverage
for sickness, bodily injury, or accidental death, and may
include benefits for disability income;

(3) property insurance: coverage for the direct or
consequential loss or damage to property of every kind;

(4) casualty insurance: coverage against legal liability,
including that for death, injury, or disability, or damage to
real or personal property;

(5) variable life and variable annuity products insurance:
coverage provided under variable life insurance contracts and
variable annuities; and

(6) personal lines: property and casualty insurance
coverage sold to individuals and families for primarily
noncommercial purposes.

(c) An individual insurance producer may receive
qualification for a license in one or more of the following
limited lines:

(1) limited line credit insurance;

(2) farm property and liability insurance;

(3) title insurance;

(4) travel baggage insurance;

(5) new text beginmobile telephone insurance; and
new text end

new text begin (6) new text endbail bondsdeleted text begin; and
deleted text end

deleted text begin (6) any other line of insurance permitted under state laws
or rules
deleted text end.

Sec. 6.

Minnesota Statutes 2004, section 60K.39,
subdivision 3, is amended to read:


Subd. 3.

Change of address.

A nonresident producer who
moves from one state to another state deleted text beginor a resident producer who
moves from this state to another state
deleted text endshall file a change of
address and provide certification from the new resident state
within ten days of the change of legal residence. No fee or
license application is required.

Sec. 7.

Minnesota Statutes 2004, section 82.31,
subdivision 5, is amended to read:


Subd. 5.

Period for application.

An applicant who
obtains an acceptable score on a salesperson's examination must
file an application and obtain the license within one year of
the date of successful completion of the examination or a second
examination must be taken to qualify for the license. deleted text beginIf a new
examination is required, prelicense education must be completed
in accordance with section 82.29, subdivision 8.
deleted text end

Sec. 8.

Minnesota Statutes 2004, section 82B.02, is
amended by adding a subdivision to read:


new text begin Subd. 16. new text end

new text begin Uspap. new text end

new text begin "USPAP" means the Uniform Standards of
Professional Appraisal Practice established by the Appraisal
Foundation.
new text end

Sec. 9.

new text begin [82B.095] APPRAISER QUALIFICATION COMPONENTS.
new text end

new text begin The three components required for a real property appraiser
license are education, experience, and examination. Applicants
for a class of license must document that they have met at least
the component criteria that were in effect at the time they
completed that component.
new text end

Sec. 10.

Minnesota Statutes 2004, section 82B.10,
subdivision 4, is amended to read:


Subd. 4.

Period for application.

An applicant who
obtains an acceptable score on an examination must file an
application and obtain the license within deleted text beginone year deleted text endnew text begintwo years new text endof
the date of successful completion of the examination or a second
examination must be taken to qualify for the license.

Sec. 11.

Minnesota Statutes 2004, section 82B.11,
subdivision 6, is amended to read:


Subd. 6.

Temporary practice.

new text begin(a) new text endThe 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.

new text begin (b) The term of a temporary practice license is the lesser
of:
new text end

new text begin (1) the time required to complete the assignment; or
new text end

new text begin (2) six months, with one extension allowed.
new text end

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

Sec. 12.

Minnesota Statutes 2004, section 82B.13,
subdivision 1, is amended to read:


Subdivision 1.

Registered real property appraiser or
licensed real property appraiser.

As a prerequisite for
licensing as a registered real property appraiser or licensed
real property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has
successfully completed at least 90 classroom hours of new text beginprelicense
new text end courses. The courses must consist of 75 hours of general real
estate appraisal principles and deleted text begin15 hours related to standards of
professional appraisal practice and the provisions of this
chapter
deleted text endnew text beginthe 15-hour national USPAP coursenew text end.

Sec. 13.

Minnesota Statutes 2004, section 82B.13,
subdivision 3, is amended to read:


Subd. 3.

Commissioner's approval; rules.

The courses and
instruction and procedures of courses must be approved by the
commissioner. The commissioner may adopt rules to administer
this section. These rules must, to the extent practicable,
conform to the rules adopted for real estate and insurance
education. new text beginThe credit hours required under this section may be
credited to a person for distance education courses that meet
Appraiser Qualifications Board criteria.
new text end

Sec. 14.

Minnesota Statutes 2004, section 82B.13,
subdivision 4, is amended to read:


Subd. 4.

Certified residential real property appraiser.

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
successfully completed at least 120 classroom hours
of new text beginprelicense new text endcourses, deleted text beginincluding 15 hours related to the
standards of professional appraisal practice and the provisions
of this chapter,
deleted text endwith particular emphasis on the appraisal of
one to four unit residential properties. new text beginFifteen of the 120
hours must include successful completion of the 15-hour national
USPAP course.
new text end

Sec. 15.

Minnesota Statutes 2004, section 82B.13,
subdivision 5, is amended to read:


Subd. 5.

Certified general real property appraiser.

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 successfully completed at
least 180 classroom hours of new text beginprelicense new text endcourses, deleted text beginincluding 15
hours related to the standards of professional appraisal
practice and the provisions of this chapter,
deleted text endwith particular
emphasis on the appraisal of nonresidential properties. new text beginFifteen
of the 180 hours must include successful completion of the
15-hour national USPAP course.
new text end

Sec. 16.

Minnesota Statutes 2004, 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.

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 new text beginobtained in
no fewer than 24 months
new text end.

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 new text beginobtained in
no fewer than 30 months
new text end. 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.

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

Sec. 17.

Minnesota Statutes 2004, section 82B.19,
subdivision 1, is amended to read:


Subdivision 1.

License renewals.

A licensed real estate
appraiser shall present evidence satisfactory to the
commissioner of having met the continuing education requirements
of this chapter before the commissioner renews a license.

The basic continuing education requirement for renewal of a
license is the completion by the applicant either as a student
or as an instructor, during the immediately preceding term of
licensing, of at least 30 classroom hours of instruction in
courses or seminars that have received the approval of the
commissioner. new text beginClassroom hour credit must not be accepted for
courses of less than two hours.
new text endAs part of the continuing
education requirements of this section, the commissioner shall
require that all real estate appraisers deleted text beginreceive at least seven
hours of training each license period in courses in laws or
regulations on standards of professional practice
deleted text endnew text beginsuccessfully
complete the seven-hour national USPAP update course every two
years
new text end. If the applicant's immediately preceding term of
licensing consisted of 12 or more months, but fewer than 24
months, the applicant must provide evidence of completion of 15
hours of instruction during the license period. deleted text beginIf the
immediately preceding term of licensing consisted of fewer than
12 months, no continuing education need be reported.
deleted text endnew text beginThe credit
hours required under this section may be credited to a person
for distance education courses that meet Appraiser
Qualifications Board criteria.
new text end

Sec. 18. new text beginREPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 82B.221, is repealed.
new text end

new text begin (b) Minnesota Rules, part 2808.2200, is repealed.
new text end