SF 3024

2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; providing certain cosmetology 
  1.3             definitions; regulating insurance coverages offered 
  1.4             by, and continuing education and licensing 
  1.5             requirements for, certain licensees; regulating the 
  1.6             contractor's recovery fund; providing for the adoption 
  1.7             and amendment of uniform conveyancing forms; making a 
  1.8             technical correction in an appropriation to the 
  1.9             department; regulating meetings of the assigned risk 
  1.10            plan review board; amending Minnesota Statutes 2000, 
  1.11            sections 62A.02, subdivision 2, as amended; 62D.02, 
  1.12            subdivision 8; 62D.30, subdivision 8, as added; 
  1.13            79.251, subdivision 1; 79.252, subdivision 3; 82.20, 
  1.14            subdivision 13; 82.22, subdivision 6; 82B.19, 
  1.15            subdivision 1; 82B.21; 155A.03, by adding 
  1.16            subdivisions; 155A.07, by adding a subdivision; 
  1.17            326.975, by adding subdivisions; 507.09; Minnesota 
  1.18            Statutes 2001 Supplement, section 82.22, subdivision 
  1.19            13; Laws 2002, chapter 330, section 36; Laws 2002, 
  1.20            chapter 336, section 5; proposing coding for new law 
  1.21            in Minnesota Statutes, chapter 62D; Minnesota Rules, 
  1.22            part 2765.1300, subparts 2, 5. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 2000, section 62A.02, 
  1.25  subdivision 2, as amended by Laws 2002, chapter 330, section 8, 
  1.26  is amended to read: 
  1.27     Subd. 2.  [APPROVAL.] (a) The health plan form shall not be 
  1.28  issued, nor shall any application, rider, endorsement, or rate 
  1.29  be used in connection with it, until the expiration of 60 days 
  1.30  after it has been filed unless the commissioner approves it 
  1.31  before that time.  
  1.32     (b) Notwithstanding paragraph (a), a rate filed with 
  1.33  respect to a policy of accident and sickness insurance as 
  1.34  defined in section 62A.01 by an insurer licensed under chapter 
  2.1   60A, may be used on or after the date of filing with the 
  2.2   commissioner.  Rates that are not approved or disapproved within 
  2.3   the 60-day time period are deemed approved.  This paragraph does 
  2.4   not apply to medicare-related coverage as defined in section 
  2.5   62A.31, subdivision 3, paragraph (q). 
  2.6      Sec. 2.  Minnesota Statutes 2000, section 62D.02, 
  2.7   subdivision 8, is amended to read: 
  2.8      Subd. 8.  [HEALTH MAINTENANCE CONTRACT.] "Health 
  2.9   maintenance contract" means any contract whereby a health 
  2.10  maintenance organization agrees to provide to enrollees 
  2.11  comprehensive health maintenance services to enrollees, provided 
  2.12  that and any other health care service set forth in the 
  2.13  contract.  The contract may contain reasonable enrollee 
  2.14  copayment cost-sharing provisions if the provisions meet the 
  2.15  requirements of section 62D.095.  An individual or group health 
  2.16  maintenance contract may contain the copayment and deductible 
  2.17  provisions specified in this subdivision.  Copayment and 
  2.18  deductible provisions in group contracts shall not discriminate 
  2.19  on the basis of age, sex, race, length of enrollment in the 
  2.20  plan, or economic status; and during every open enrollment 
  2.21  period in which all offered health benefit plans, including 
  2.22  those subject to the jurisdiction of the commissioners of 
  2.23  commerce or health, fully participate without any underwriting 
  2.24  restrictions, copayment and deductible provisions shall not 
  2.25  discriminate on the basis of preexisting health status.  In no 
  2.26  event shall the sum of the annual copayments and deductible 
  2.27  exceed the maximum out-of-pocket expenses allowable for a number 
  2.28  three qualified plan under section 62E.06, nor shall that sum 
  2.29  exceed $5,000 per family.  The annual deductible must not exceed 
  2.30  $1,000 per person.  The annual deductible must not apply to 
  2.31  preventive health services as described in Minnesota Rules, part 
  2.32  4685.0801, subpart 8.  Where sections 62D.01 to 62D.30 permit a 
  2.33  health maintenance organization to contain reasonable copayment 
  2.34  provisions for preexisting health status, these provisions may 
  2.35  vary with respect to length of enrollment in the plan.  Any 
  2.36  contract may provide for health care services in addition to 
  3.1   those set forth in subdivision 7. 
  3.2      Sec. 3.  [62D.095] [ENROLLEE COST SHARING.] 
  3.3      Subdivision 1.  [GENERAL APPLICATION.] A health maintenance 
  3.4   contract may contain enrollee cost-sharing provisions as 
  3.5   specified in this section.  Co-payment and deductible provisions 
  3.6   in a group contract must not discriminate on the basis of age, 
  3.7   sex, race, disability, economic status, or length of enrollment 
  3.8   in the health plan.  During an open enrollment period in which 
  3.9   all offered health plans fully participate without any 
  3.10  underwriting restrictions, co-payment and deductible provisions 
  3.11  must not discriminate on the basis of preexisting health status. 
  3.12     Subd. 2.  [CO-PAYMENTS.] (a) A health maintenance contract 
  3.13  may impose a co-payment as authorized under Minnesota Rules, 
  3.14  part 4685.0801.  
  3.15     (b) If a health maintenance contract is permitted to impose 
  3.16  a co-payment for preexisting health status under sections 62D.01 
  3.17  to 62D.30, these provisions may vary with respect to length of 
  3.18  enrollment in the health plan.  
  3.19     Subd. 3.  [DEDUCTIBLES.] (a) A health maintenance contract 
  3.20  issued by a health maintenance organization that is assessed 
  3.21  less than three percent of the total annual amount assessed by 
  3.22  the Minnesota comprehensive health association may impose 
  3.23  deductibles not to exceed $3,000 per person, per year and $6,000 
  3.24  per family, per year.  For purposes of the percentage 
  3.25  calculation, a health maintenance organization's assessments 
  3.26  include those of its affiliates.  
  3.27     (b) All other health maintenance contracts may impose 
  3.28  deductibles not to exceed $2,250 per person, per year and $4,500 
  3.29  per family, per year.  
  3.30     Subd. 4.  [ANNUAL OUT-OF-POCKET MAXIMUMS.] (a) A health 
  3.31  maintenance contract issued by a health maintenance organization 
  3.32  that is assessed less than three percent of the total annual 
  3.33  amount assessed by the Minnesota comprehensive health 
  3.34  association must include a limitation not to exceed $4,500 per 
  3.35  person and $7,500 per family on total annual out-of-pocket 
  3.36  enrollee cost-sharing expenses.  For purposes of the percentage 
  4.1   calculation, a health maintenance organization's assessments 
  4.2   include those of its affiliates.  
  4.3      (b) All other health maintenance contracts must include a 
  4.4   limitation not to exceed $3,000 per person and $6,000 per family 
  4.5   on total annual out-of-pocket enrollee cost-sharing expenses.  
  4.6      Subd. 5.  [EXCEPTIONS.] No co-payments or deductibles may 
  4.7   be imposed on preventive health care services as described in 
  4.8   Minnesota Rules, part 4685.0801, subpart 8.  
  4.9      Sec. 4.  Minnesota Statutes 2000, section 62D.30, 
  4.10  subdivision 8, as added by Laws 2002, chapter 346, section 1, is 
  4.11  amended to read: 
  4.12     Subd. 8.  [RURAL DEMONSTRATION PROJECT.] (a) The 
  4.13  commissioner may permit demonstration projects to allow health 
  4.14  maintenance organizations to extend coverage to a health 
  4.15  improvement and purchasing coalition located in rural Minnesota, 
  4.16  comprised of the health maintenance organization and members 
  4.17  from a geographic area.  For purposes of this subdivision, rural 
  4.18  is defined as greater Minnesota excluding the seven-county 
  4.19  metropolitan area of Anoka, Carver, Dakota, Hennepin, Ramsey, 
  4.20  Scott, and Washington.  The coalition must be designed in such a 
  4.21  way that members will: 
  4.22     (1) become better informed about health care trends and 
  4.23  cost increases; 
  4.24     (2) be actively engaged in the design of health benefit 
  4.25  options that will meet the needs of their community; 
  4.26     (3) pool their insurance risk; 
  4.27     (4) purchase these products from the health maintenance 
  4.28  organization involved in the demonstration project; and 
  4.29     (5) actively participate in health improvement decisions 
  4.30  for their community. 
  4.31     (b) The commissioner must consider the following when 
  4.32  approving applications for rural demonstration projects: 
  4.33     (1) the extent of consumer involvement in development of 
  4.34  the project; 
  4.35     (2) the degree to which the project is likely to reduce the 
  4.36  number of uninsured or to maintain existing coverage; and 
  5.1      (3) a plan to evaluate and report to the commissioner and 
  5.2   legislature as prescribed by paragraph (e). 
  5.3      (c) For purposes of this subdivision, the commissioner must 
  5.4   waive compliance with the following statutes and rules:  the 
  5.5   cost-sharing restrictions under section 62D.02, subdivision 8, 
  5.6   which for purposes of this subdivision is the sum of the annual 
  5.7   copayments and deductible which is prohibited from exceeding the 
  5.8   maximum out-of-pocket expenses allowable for a number three 
  5.9   qualified plan under section 62E.06 or $5,000 per family and an 
  5.10  annual deductible of $1,000 per person 62D.095, subdivisions 2, 
  5.11  3, and 4, and Minnesota Rules, part 4685.0801, subparts 1 to 7; 
  5.12  for a period of at least two years, participation in government 
  5.13  programs under section 62D.04, subdivision 5, in the counties of 
  5.14  the demonstration project if that compliance would have been 
  5.15  required solely due to participation in the demonstration 
  5.16  project and shall continue to waive this requirement beyond two 
  5.17  years if the enrollment in the demonstration project is less 
  5.18  than 10,000 enrollees; small employer marketing under section 
  5.19  62L.05, subdivisions 1 to 3; and small employer geographic 
  5.20  premium variations under section 62L.08, subdivision 4.  The 
  5.21  commissioner shall approve enrollee cost-sharing features 
  5.22  desired by the coalition that appropriately share costs between 
  5.23  employers, individuals, and the health maintenance organization. 
  5.24     (d) The health maintenance organization may make the 
  5.25  starting date of the project contingent upon a minimum number of 
  5.26  enrollees as cited in the application, provide for an initial 
  5.27  term of contract with the purchasers of a minimum of three 
  5.28  years, and impose a reasonable penalty for employers who 
  5.29  withdraw early from the project.  For purposes of this 
  5.30  subdivision, loss ratios are to be determined as if the policies 
  5.31  issued under this section are considered individual or small 
  5.32  employer policies pursuant to section 62A.021, subdivision 1, 
  5.33  paragraph (f).  The health maintenance organization may consider 
  5.34  businesses of one to be a small employer under section 62L.02, 
  5.35  subdivision 26.  The health maintenance organization may limit 
  5.36  enrollment and establish enrollment criteria for businesses of 
  6.1   one.  Health improvement and purchasing coalitions under this 
  6.2   subdivision are not associations under section 62L.045, 
  6.3   subdivision 1, paragraph (a). 
  6.4      (e) The health improvement and purchasing coalition must 
  6.5   report to the commissioner and legislature annually on the 
  6.6   progress of the demonstration project and, to the extent 
  6.7   possible, any significant findings in the criteria listed in 
  6.8   clauses (1), (2), and (3) for the final report.  The coalition 
  6.9   must submit a final report five years from the starting date of 
  6.10  the project.  The final report must detail significant findings 
  6.11  from the project and must include, to the extent available, but 
  6.12  should not be limited to, information on the following: 
  6.13     (1) the extent to which the project had an impact on the 
  6.14  number of uninsured in the project area; 
  6.15     (2) the effect on health coverage premiums for groups in 
  6.16  the project's geographic area, including those purchasing health 
  6.17  coverage outside the health improvement and purchasing 
  6.18  coalition; and 
  6.19     (3) the degree to which health care consumers were involved 
  6.20  in the development and implementation of the demonstration 
  6.21  project. 
  6.22     (f) The commissioner must limit the number of demonstration 
  6.23  projects under this subdivision to five projects. 
  6.24     (g) Approval of the application for the demonstration 
  6.25  project is deemed to be in compliance with sections 62E.03 and 
  6.26  62E.06, subdivisions 1, paragraph (a), 2, and 3. 
  6.27     (h) Subdivisions 2 to 7 apply to demonstration projects 
  6.28  under this subdivision.  Waivers permitted under subdivision 1 
  6.29  do not apply to demonstration projects under this subdivision. 
  6.30     (i) If a demonstration project under this subdivision works 
  6.31  in conjunction with a purchasing alliance formed under chapter 
  6.32  62T, that chapter will apply to the purchasing alliance except 
  6.33  to the extent that chapter 62T is inconsistent with this 
  6.34  subdivision. 
  6.35     Sec. 5.  Minnesota Statutes 2000, section 79.251, 
  6.36  subdivision 1, is amended to read: 
  7.1      Subdivision 1.  [ASSIGNED RISK PLAN REVIEW BOARD GENERAL 
  7.2   DUTIES OF COMMISSIONER.] (1) An assigned risk plan review board 
  7.3   is created for the purposes of review of the operation of 
  7.4   section 79.252 and this section.  The board commissioner shall 
  7.5   have all the usual powers and authorities necessary for the 
  7.6   discharge of its the commissioner's duties under this section 
  7.7   and may contract with individuals in discharge of those duties.  
  7.8      (2) The board shall consist of six members to be appointed 
  7.9   by the commissioner of commerce.  Three members shall be 
  7.10  insureds holding policies or contracts of coverage issued 
  7.11  pursuant to subdivision 4.  Two members shall be insurers 
  7.12  licensed pursuant to section 60A.06, subdivision 1, clause (5), 
  7.13  paragraph (b).  The commissioner shall be the sixth member and 
  7.14  shall vote. 
  7.15     Initial appointments shall be made by September 1, 1981, 
  7.16  and terms shall be for three years duration.  Removal, the 
  7.17  filling of vacancies and compensation of the members other than 
  7.18  the commissioner shall be as provided in section 15.059.  
  7.19     (3) The assigned risk plan review board commissioner shall 
  7.20  audit the reserves established (a) for individual cases arising 
  7.21  under policies and contracts of coverage issued under 
  7.22  subdivision 4 and (b) for the total book of business issued 
  7.23  under subdivision 4.  
  7.24     (4) (2) The assigned risk plan review board commissioner 
  7.25  shall monitor the operations of section 79.252 and this section 
  7.26  and shall periodically make recommendations to the commissioner, 
  7.27  and to the governor and legislature when appropriate, for 
  7.28  improvement in the operation of those sections.  
  7.29     (5) (3) All insurers and self-insurance administrators 
  7.30  issuing policies or contracts under subdivision 4 shall pay to 
  7.31  the commissioner a .25 percent assessment on premiums for 
  7.32  policies and contracts of coverage issued under subdivision 4 
  7.33  for the purpose of defraying the costs of the assigned risk plan 
  7.34  review board performing the duties under clauses (1) and (2).  
  7.35  Proceeds of the assessment shall be deposited in the state 
  7.36  treasury and credited to the general fund. 
  8.1      (6) (4) The assigned risk plan and the assigned risk plan 
  8.2   review board shall not be deemed a state agency.  
  8.3      Sec. 6.  Minnesota Statutes 2000, section 79.252, 
  8.4   subdivision 3, is amended to read: 
  8.5      Subd. 3.  [COVERAGE.] (a) Policies and contracts of 
  8.6   coverage issued pursuant to section 79.251, subdivision 4, shall 
  8.7   contain the usual and customary provisions of workers' 
  8.8   compensation insurance policies, and shall be deemed to meet the 
  8.9   mandatory workers' compensation insurance requirements of 
  8.10  section 176.181, subdivision 2.  
  8.11     (b) Policies issued by the assigned risk plan pursuant to 
  8.12  this chapter may also provide workers' compensation coverage 
  8.13  required under the laws of states other than Minnesota, 
  8.14  including coverages commonly known as "all states coverage."  
  8.15  The assigned risk plan review board commissioner may apply for 
  8.16  and obtain any licensure required in any other state to issue 
  8.17  that coverage.  
  8.18     Sec. 7.  Minnesota Statutes 2000, section 82.20, 
  8.19  subdivision 13, is amended to read: 
  8.20     Subd. 13.  [LIMITED BROKER'S LICENSE.] (a) The commissioner 
  8.21  shall have the authority to issue a limited real estate broker's 
  8.22  license authorizing the licensee to engage in transactions as 
  8.23  principal only.  Such license shall be issued only after receipt 
  8.24  of the application described in subdivision 3 and payment of the 
  8.25  fee prescribed by section 82.21, subdivision 1.  No salesperson 
  8.26  may be licensed to act on behalf of an individual holding a 
  8.27  limited broker's license.  An officer of a corporation or 
  8.28  partner of a partnership licensed as a limited broker may act on 
  8.29  behalf of that corporation or partnership without being subject 
  8.30  to the licensing requirements. 
  8.31     (b) A limited broker's license shall also authorize the 
  8.32  licensee to engage in negotiation of mortgage loans, other than 
  8.33  residential mortgage loans, as described in section 82.17, 
  8.34  subdivision 4, clause (b). 
  8.35     Sec. 8.  Minnesota Statutes 2000, section 82.22, 
  8.36  subdivision 6, is amended to read: 
  9.1      Subd. 6.  [INSTRUCTION; NEW LICENSES.] (a) Every applicant 
  9.2   for a salesperson's license shall be required to successfully 
  9.3   complete a course of study in the real estate field consisting 
  9.4   of 30 hours of instruction approved by the commissioner before 
  9.5   taking the examination specified in subdivision 1.  Every 
  9.6   applicant for a salesperson's license shall be required to 
  9.7   successfully complete an additional course of study in the real 
  9.8   estate field consisting of 60 hours of instruction approved by 
  9.9   the commissioner, of which three hours shall consist of training 
  9.10  in state and federal fair housing laws, regulations, and rules, 
  9.11  and of which two hours must consist of training in laws and 
  9.12  regulations on agency representation and disclosure, before 
  9.13  filing an application for the license.  Every salesperson shall, 
  9.14  within one year of licensure, be required to successfully 
  9.15  complete a course of study in the real estate field consisting 
  9.16  of 30 hours of instruction approved by the commissioner. 
  9.17     (b) The commissioner may approve courses of study in the 
  9.18  real estate field offered in educational institutions of higher 
  9.19  learning in this state or courses of study in the real estate 
  9.20  field developed by and offered under the auspices of the 
  9.21  national association of realtors, its affiliates, or private 
  9.22  real estate schools.  The commissioner shall not approve any 
  9.23  course offered by, sponsored by, or affiliated with any person 
  9.24  or company licensed to engage in the real estate business.  The 
  9.25  commissioner may by rule prescribe the curriculum and 
  9.26  qualification of those employed as instructors. 
  9.27     (c) An applicant for a broker's license must successfully 
  9.28  complete a course of study in the real estate field consisting 
  9.29  of 30 hours of instruction approved by the commissioner, of 
  9.30  which three hours shall consist of training in state and federal 
  9.31  fair housing laws, regulations, and rules.  The course must have 
  9.32  been completed within six 12 months prior to the date of 
  9.33  application for the broker's license. 
  9.34     (d) An applicant for a real estate closing agent's license 
  9.35  must successfully complete a course of study relating to closing 
  9.36  services consisting of eight hours of instruction approved by 
 10.1   the commissioner. 
 10.2      Sec. 9.  Minnesota Statutes 2001 Supplement, section 82.22, 
 10.3   subdivision 13, is amended to read: 
 10.4      Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
 10.5   renewal date, All real estate salespersons and all real estate 
 10.6   brokers shall be required to successfully complete 30 hours of 
 10.7   real estate continuing education, either as a student or a 
 10.8   lecturer, in courses of study approved by the commissioner, 
 10.9   during the initial license period and during each succeeding 
 10.10  24-month license period.  At least 15 of the 30 credit hours 
 10.11  must be completed during the first 12 months of the 24-month 
 10.12  licensing period.  Salespersons and brokers whose initial 
 10.13  license period extends more than 12 months are required to 
 10.14  complete 15 hours of real estate continuing education during the 
 10.15  initial license period.  Those licensees who will receive a 
 10.16  12-month license on July 1, 1995, because of the staggered 
 10.17  implementation schedule must complete 15 hours of real estate 
 10.18  continuing education as a requirement for renewal on July 1, 
 10.19  1996.  Licensees may not claim credit for continuing education 
 10.20  not actually completed as of the date their report of continuing 
 10.21  education compliance is filed. 
 10.22     (b) The commissioner shall adopt rules defining the 
 10.23  standards for course and instructor approval, and may adopt 
 10.24  rules for the proper administration of this subdivision.  The 
 10.25  commissioner may not approve a course which can be completed by 
 10.26  the student at home or outside the classroom without the 
 10.27  supervision of an instructor except accredited courses using new 
 10.28  delivery technology, including interactive technology, and the 
 10.29  Internet.  Courses in motivation, salesmanship, psychology, or 
 10.30  time management shall not be approved by the commissioner for 
 10.31  continuing education credit. 
 10.32     (c) Any program approved by Minnesota continuing legal 
 10.33  education shall be approved by the commissioner of commerce for 
 10.34  continuing education for real estate brokers and salespeople if 
 10.35  the program or any part thereof relates to real estate.  
 10.36     (d) As part of the continuing education requirements of 
 11.1   this section, the commissioner shall require that all real 
 11.2   estate brokers and salespersons receive: 
 11.3      (1) at least one hour of training during each license 
 11.4   period in courses in laws or regulations on agency 
 11.5   representation and disclosure; and 
 11.6      (2) at least one hour of training during each license 
 11.7   period in courses in state and federal fair housing laws, 
 11.8   regulations, and rules, other antidiscrimination laws, or 
 11.9   courses designed to help licensees to meet the housing needs of 
 11.10  immigrant and other underserved populations. 
 11.11     Clauses (1) and (2) do not apply to real estate 
 11.12  salespersons and real estate brokers engaged solely in the 
 11.13  commercial real estate business who file with the commissioner a 
 11.14  verification of this status along with the continuing education 
 11.15  report required under paragraph (a). 
 11.16     (e) The commissioner is authorized to establish a procedure 
 11.17  for renewal of course accreditation. 
 11.18     (f) Approved courses may be sponsored or offered by a 
 11.19  broker of a real estate company and may be held on the premises 
 11.20  of a company licensed under this chapter.  All course offerings 
 11.21  must be open to any interested individuals.  Access may be 
 11.22  restricted by the sponsor based on class size only.  Courses 
 11.23  must not be approved if attendance is restricted to any 
 11.24  particular group of people.  A broker must comply with all 
 11.25  continuing education rules prescribed by the commissioner. 
 11.26     (g) No more than one-half of the credit hours per licensing 
 11.27  period, including continuing education required under 
 11.28  subdivision 6, may be credited to a person for attending any 
 11.29  combination of courses either:  
 11.30     (1) sponsored by, offered by, or affiliated with a real 
 11.31  estate company or its agents; or 
 11.32     (2) offered using new delivery technology, including 
 11.33  interactive technology, and the Internet. 
 11.34     Sec. 10.  Minnesota Statutes 2000, section 82B.19, 
 11.35  subdivision 1, is amended to read: 
 11.36     Subdivision 1.  [LICENSE RENEWALS.] A licensed real estate 
 12.1   appraiser shall present evidence satisfactory to the 
 12.2   commissioner of having met the continuing education requirements 
 12.3   of this chapter before the commissioner renews a license. 
 12.4      The basic continuing education requirement for renewal of a 
 12.5   license is the completion by the applicant either as a student 
 12.6   or as an instructor, during the immediately preceding term of 
 12.7   licensing, of at least 30 classroom hours of instruction in 
 12.8   courses or seminars that have received the approval of the 
 12.9   commissioner.  As part of the continuing education requirements 
 12.10  of this section, the commissioner shall require that all real 
 12.11  estate appraisers receive at least four seven hours of training 
 12.12  each license period in courses in laws or regulations on 
 12.13  standards of professional practice.  If the applicant's 
 12.14  immediately preceding term of licensing consisted of 12 or more 
 12.15  months, but fewer than 24 months, the applicant must provide 
 12.16  evidence of completion of 15 hours of instruction during the 
 12.17  license period.  If the immediately preceding term of licensing 
 12.18  consisted of fewer than 12 months, no continuing education need 
 12.19  be reported. 
 12.20     Sec. 11.  Minnesota Statutes 2000, section 82B.21, is 
 12.21  amended to read: 
 12.22     82B.21 [CLASSIFICATION OF SERVICES.] 
 12.23     A client or employer may retain or employ a licensed real 
 12.24  estate appraiser to act as a disinterested third party in giving 
 12.25  an unbiased estimate of value or analysis.  A client or employer 
 12.26  may also retain or employ a licensed real estate appraiser; to 
 12.27  provide a market analysis to facilitate the client's or 
 12.28  employer's objectives; or to perform a limited appraisal.  In 
 12.29  either case, The appraisal and the appraisal report must comply 
 12.30  with the provisions of this chapter and the uniform standards of 
 12.31  professional appraisal practice. 
 12.32     Sec. 12.  Minnesota Statutes 2000, section 155A.03, is 
 12.33  amended by adding a subdivision to read: 
 12.34     Subd. 14.  [LICENSED SALON.] "Licensed salon" means a salon 
 12.35  licensed in Minnesota. 
 12.36     Sec. 13.  Minnesota Statutes 2000, section 155A.03, is 
 13.1   amended by adding a subdivision to read: 
 13.2      Subd. 15.  [LICENSED SCHOOL.] "Licensed school" means a 
 13.3   school licensed in Minnesota. 
 13.4      Sec. 14.  Minnesota Statutes 2000, section 155A.07, is 
 13.5   amended by adding a subdivision to read: 
 13.6      Subd. 9.  [NONRESIDENT LICENSES.] Notwithstanding the 
 13.7   absence of a written reciprocal licensing agreement under 
 13.8   section 45.0292, a nonresident cosmetologist, manicurist, or 
 13.9   esthetician may be licensed in Minnesota if the individual has 
 13.10  completed cosmetology school in a state with the same or greater 
 13.11  school hour requirements, has an active license in that state, 
 13.12  and has passed the Minnesota-specific written operator 
 13.13  examination for cosmetologist, manicurist, or esthetician.  
 13.14  Licenses shall not be issued under this subdivision for managers 
 13.15  or instructors. 
 13.16     Sec. 15.  Minnesota Statutes 2000, section 326.975, is 
 13.17  amended by adding a subdivision to read: 
 13.18     Subd. 1a.  [LIMITATION.] Nothing may obligate the fund for 
 13.19  claims brought by: 
 13.20     (1) insurers or sureties under subrogation or similar 
 13.21  theories; or 
 13.22     (2) owners of residential property where the contracting 
 13.23  activity complained of was the result of a contract entered into 
 13.24  with a prior owner, unless the claim is brought and judgment 
 13.25  rendered for breach of the statutory warranty set forth in 
 13.26  chapter 327A. 
 13.27     Sec. 16.  Minnesota Statutes 2000, section 326.975, is 
 13.28  amended by adding a subdivision to read: 
 13.29     Subd. 1b.  [CONDOMINIUMS OR TOWNHOUSES.] For purposes of 
 13.30  this section, the owner or lessee of a condominium or townhouse 
 13.31  is considered an owner or lessee of residential property 
 13.32  regardless of the number of residential units per building. 
 13.33     Sec. 17.  Minnesota Statutes 2000, section 507.09, is 
 13.34  amended to read: 
 13.35     507.09 [FORMS APPROVED; AMENDMENTS.] 
 13.36     The several forms of deeds, mortgages, land contracts, 
 14.1   assignments, satisfactions, and other conveyancing instruments 
 14.2   prepared by the uniform conveyancing blanks commission and filed 
 14.3   by the commission with the secretary of state pursuant to Laws 
 14.4   1929, chapter 135, as amended by Laws 1931, chapter 34, are 
 14.5   approved and recommended for use in the state.  Such forms shall 
 14.6   be kept on file with and be preserved by the commissioner of 
 14.7   commerce as a public record.  The commissioner of commerce may 
 14.8   appoint an advisory task force on uniform conveyancing forms to 
 14.9   recommend to the commissioner of commerce amendments to existing 
 14.10  forms or the adoption of new forms.  The task force shall 
 14.11  expire, and the terms, compensation, and removal of members 
 14.12  shall be as provided in section 15.059.  The commissioner of 
 14.13  commerce may adopt amended or new forms consistent with the laws 
 14.14  of this state by complying with the procedures in section 
 14.15  14.386, paragraph (a), clauses (1) and (3).  Section 14.386, 
 14.16  paragraph (b), does not apply to these forms order. 
 14.17     Sec. 18.  Laws 2002, chapter 330, section 36, is amended to 
 14.18  read: 
 14.19     Sec. 36.  [EFFECTIVE DATE.] 
 14.20     Sections 7 and 30 are effective the day following final 
 14.21  enactment.  Section 3 is effective for dividends paid after 
 14.22  December 31, 2000.  Sections 8 and 9 are effective July 1, 2002. 
 14.23     Sec. 19.  Laws 2002, chapter 336, section 5, is amended to 
 14.24  read: 
 14.25     Sec. 5.  [APPROPRIATION.] 
 14.26     $70,000 is appropriated from the general fund to the 
 14.27  commissioner of commerce for the purpose of verifying premiums 
 14.28  in order to certify the $250,000 premium threshold under 
 14.29  Minnesota Statutes, section 79.56, subdivision 3.  The 
 14.30  appropriation is available until June 30, 2003, and shall become 
 14.31  part of the agency base for fiscal years 2004 and 2005. 
 14.32     Sec. 20.  Minnesota Rules, part 2765.1300, subpart 2, is 
 14.33  amended to read: 
 14.34     Subp. 2.  Individual excess.  A plan must have and maintain 
 14.35  individual excess stop-loss insurance, that provides for the 
 14.36  insurer to assume all liability in excess of $25,000 the per 
 15.1   person limit per year under all coverages the plan offers.  The 
 15.2   reporting period under this coverage must be no less than one 
 15.3   year after the fund year's conclusion.  A plan may must apply to 
 15.4   the commissioner for increasing a determination of the 
 15.5   individual excess stop-loss insurance limit, up to $50,000.  The 
 15.6   commissioner must approve this the application if the increased 
 15.7   limit would not be detrimental to the solvency and stability of 
 15.8   the plan, considering the plan's experience, size, surplus, and 
 15.9   other factors affecting financial integrity. 
 15.10     Sec. 21.  Minnesota Rules, part 2765.1300, subpart 5, is 
 15.11  amended to read: 
 15.12     Subp. 5.  Surety coverage.  A plan must have and maintain 
 15.13  the following language in its required aggregate excess 
 15.14  stop-loss insurance policy, unless the commissioner determines 
 15.15  that a policy with that language is not available in the market 
 15.16  for stop-loss coverage, in which case, the commissioner may 
 15.17  determine the requirements needed to obtain stop-loss coverage 
 15.18  and meet solvency requirements:  "The insurer shall, at the 
 15.19  commissioner's request, assume direct responsibility for the 
 15.20  plan's coverage and all other responsibilities under this 
 15.21  chapter and related statutes, if the plan becomes insolvent, 
 15.22  ceases operations without authorization, or otherwise fails to 
 15.23  fulfill its responsibilities under this chapter and related 
 15.24  statutes.  The insurer may attempt to collect reimbursement from 
 15.25  the plan or a member on whose behalf the insurer is called upon 
 15.26  to pay premium, pay claims, or incur other extraordinary 
 15.27  expenses.  However, the insurer must fulfill its 
 15.28  responsibilities under this section while any collection 
 15.29  attempts are pending.  The insurer's responsibilities extend to 
 15.30  all matters arising during or attributable to the policy period, 
 15.31  and do not terminate with the end of the policy period."  The 
 15.32  policy must not alter or qualify these terms to harm the plan's 
 15.33  rights materially. 
 15.34     Sec. 22.  [MEETINGS IN 2002; ASSIGNED RISK PLAN REVIEW 
 15.35  BOARD.] 
 15.36     The assigned risk plan review board must meet at least once 
 16.1   no later than December 31, 2002.  This section expires on that 
 16.2   date. 
 16.3      Sec. 23.  [EFFECTIVE DATES.] 
 16.4      Sections 7, 11 to 19, and 22 are effective the day 
 16.5   following final enactment.  Section 1 is effective July 1, 
 16.6   2002.  Sections 8 and 9 are effective the day following final 
 16.7   enactment, for licenses issued or renewed on or after that date. 
 16.8   Sections 2, 3, 4, 20, and 21 are effective August 1, 2002.  
 16.9   Sections 5 and 6 are effective January 1, 2003.  Section 10 is 
 16.10  effective September 1, 2003, for renewals on or after that date.