SF 1815

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; modifying various requirements
for licensees of the Department of Commerce; amending
Minnesota Statutes 2004, sections 60K.37, subdivision
1; 60K.38, subdivision 1; 60K.39, subdivision 3;
60K.56, subdivision 6; 82.29, subdivision 8; 82.31,
subdivision 5; 82.32; 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,
chapter 45; 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 [45.20] CRIMINAL BACKGROUND CHECK.
new text end

new text begin All applicants for a license must attach a printed copy of
their own public criminal history which they must obtain at
their own cost from the Bureau of Criminal Apprehension. The
public criminal history cannot be more than 30 days old at the
time of applying for a license.
new text end

Sec. 2.

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is incomplete is considered withdrawn if the applicant does not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if an application is withdrawn according to this subdivision.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. 3.

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. 4.

new text begin [45.23] LICENSE RENEWAL.
new text end

new text begin An individual license remains in effect unless revoked or
suspended as long as all renewal requirements, including renewal
fee payment and continuing education, are met by the due date.
new text end

Sec. 5.

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 begin However, 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. 6.

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; new text begin and
new text end

(5) bail bonds deleted 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. 7.

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 begin or a resident producer who
moves from this state to another state deleted text end shall 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. 8.

Minnesota Statutes 2004, section 60K.56,
subdivision 6, is amended to read:

Subd. 6.

Minimum education requirement.

Each person
subject to this section shall complete a minimum of 30 credit
hours of courses accredited by the commissioner during each
24-month licensing period. Any person whose initial licensing
period extends more than six months shall complete 15 hours of
courses accredited by the commissioner during the initial
license period. new text begin The credit hours required under this
subdivision may be credited to a person for distance education
courses, including interactive technology and the Internet. new text end Any
person teaching or lecturing at an accredited course qualifies
for three times the number of credit hours that would be granted
to a person completing the accredited course. deleted text begin No more than
one-half of the credit hours per licensing period required under
this section may be credited to a person for attending any
combination of courses either sponsored by, offered by, or
affiliated with an insurance company or its agents; or offered
using new delivery technology, including computer, interactive
technology, and the Internet. deleted text end Courses sponsored by, offered by,
or affiliated with an insurance company or agent may restrict
its students to agents of the company or agency.

Sec. 9.

Minnesota Statutes 2004, section 82.29,
subdivision 8, is amended to read:

Subd. 8.

Instruction; new licenses.

(a) Every applicant
for a salesperson's license shall be required to successfully
complete a course of study in the real estate field consisting
of 30 hours of instruction approved by the commissioner before
taking the examination specified in subdivision 1. Every
applicant for a salesperson's license shall be required to
successfully complete an additional course of study in the real
estate field consisting of 60 hours of instruction approved by
the commissioner, of which three hours shall consist of training
in state and federal fair housing laws, regulations, and rules,
and of which two hours must consist of training in laws and
regulations on agency representation and disclosure, before
filing an application for the license. This subdivision does
not apply to salespeople licensed in Minnesota before July 1,
1969.

(b) An applicant for a broker's license must successfully
complete a course of study in the real estate field consisting
of 30 hours of instruction approved by the commissioner, of
which three hours shall consist of training in state and federal
fair housing laws, regulations, and rules. deleted text begin The course must have
been completed within 12 months prior to the date of application
for the broker's license.
deleted text end

(c) An applicant for a real estate closing agent's license
must successfully complete a course of study relating to closing
services consisting of eight hours of instruction approved by
the commissioner.

Sec. 10.

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 begin If a new
examination is required, prelicense education must be completed
in accordance with section 82.29, subdivision 8.
deleted text end

Sec. 11.

Minnesota Statutes 2004, section 82.32, is
amended to read:

82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.

(a) All real estate salespersons and all real estate
brokers shall be required to successfully complete 30 hours of
real estate continuing education, either as a student or a
lecturer, in courses of study approved by the commissioner,
during the initial license period and during each succeeding
24-month license period. deleted text begin At least 15 of the 30 credit hours
must be completed during the first 12 months of the 24-month
licensing period. deleted text end Licensees may not claim credit for continuing
education not actually completed as of the date their report of
continuing education compliance is filed.

(b) The commissioner may adopt rules defining the standards
for course and instructor approval, and may adopt rules for the
proper administration of prelicense instruction as required
under section 82.29, subdivision 8, and continuing education as
required under this section and sections 82.29; 82.31,
subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and
82.44. The commissioner may not approve a course which can be
completed by the student at home or outside the classroom
without the supervision of an instructor except accredited
courses using new delivery technology, including interactive
technology, and the Internet. The commissioner may approve
courses of study in the real estate field offered in educational
institutions of higher learning in this state or courses of
study in the real estate field developed by and offered under
the auspices of the National Association of Realtors, its
affiliates, or private real estate schools. Courses in
motivation, salesmanship, psychology, or time management shall
not be approved by the commissioner for continuing education
credit. The commissioner may approve courses in any other
subjects, including, but not limited to, communication,
marketing, negotiation, and technology for continuing education
credit.

(c) Any program approved by Minnesota continuing legal
education shall be approved by the commissioner of commerce for
continuing education for real estate brokers and salespeople if
the program or any part thereof relates to real estate.

(d) As part of the continuing education requirements of
this section and sections 82.29; 82.31, subdivisions 5 and 6;
82.33, subdivisions 1 and 4 to 6; and 82.44, the commissioner
shall require that all real estate brokers and salespersons
receive:

(1) at least one hour of training during each license
period in courses in laws or regulations on agency
representation and disclosure; and

(2) at least one hour of training during each license
period in courses in state and federal fair housing laws,
regulations, and rules, other antidiscrimination laws, or
courses designed to help licensees to meet the housing needs of
immigrant and other underserved populations.

Clauses (1) and (2) do not apply to real estate
salespersons and real estate brokers engaged solely in the
commercial real estate business who file with the commissioner a
verification of this status along with the continuing education
report required under paragraph (a).

(e) The commissioner is authorized to establish a procedure
for renewal of course accreditation.

(f) Approved continuing education courses may be sponsored
or offered by a broker of a real estate company and may be held
on the premises of a company licensed under this chapter. All
continuing education course offerings must be open to any
interested individuals. Access may be restricted by the sponsor
based on class size only. Courses must not be approved if
attendance is restricted to any particular group of people. A
broker must comply with all continuing education rules
prescribed by the commissioner. The commissioner shall not
approve any prelicense instruction courses offered by, sponsored
by, or affiliated with any person or company licensed to engage
in the real estate business.

(g) Credit may not be earned if the licensee has previously
obtained credit for the same course as either a student or
instructor during the same licensing period.

(h) The real estate education course completion certificate
must be in the form set forth by the commissioner.

Students are responsible for maintaining copies of course
completion certificates.

Sec. 12.

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. 13.

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 begin one year deleted text end new text begin two years new text end of
the date of successful completion of the examination or a second
examination must be taken to qualify for the license.

Sec. 14.

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

Subd. 6.

Temporary practice.

new text begin (a) new text end 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.

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. 15.

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 courses.
The courses must consist of 75 hours of general real estate
appraisal principles and deleted text begin 15 hours related to standards of
professional appraisal practice and the provisions of this
chapter deleted text end new text begin the 15-hour national USPAP course new text end .

Sec. 16.

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 begin The 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. 17.

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 courses,
deleted text begin including 15 hours related to the standards of professional
appraisal practice and the provisions of this chapter, deleted text end with
particular emphasis on the appraisal of one to four unit
residential properties. new text begin Fifteen of the 120 hours must include
successful completion of the 15-hour national USPAP course.
new text end

Sec. 18.

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 courses, deleted text begin including 15 hours related
to the standards of professional appraisal practice and the
provisions of this chapter, deleted text end with particular emphasis on the
appraisal of nonresidential properties. new text begin Fifteen of the 180
hours must include successful completion of the 15-hour national
USPAP course.
new text end

Sec. 19.

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 begin obtained 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 begin obtained 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. 20.

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 begin Classroom hour credit must not be accepted for
courses of less than two hours. new text end As part of the continuing
education requirements of this section, the commissioner shall
require that all real estate appraisers deleted text begin receive at least seven
hours of training each license period in courses in laws or
regulations on standards of professional practice deleted text end new text begin successfully
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 begin If the
immediately preceding term of licensing consisted of fewer than
12 months, no continuing education need be reported. deleted text end new text begin The 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. 21. new text begin REPEALER.
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