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SF 3435

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/20/2020 10:03am

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

Current Version - 1st Engrossment

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A bill for an act
relating to real estate; modifying appraisal management company licensure;
amending Minnesota Statutes 2018, sections 82C.03, subdivision 5; 82C.06;
82C.08, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2018, section 82C.03, subdivision 5, is amended to read:


Subd. 5.

Minimum information.

The application must, at a minimum, include the
following information:

(1) the name of the entity seeking registration;

(2) the business address or addresses of the entity seeking registration;

(3) telephone contact and e-mail information of the entity seeking registration;

(4) if the entity is not a corporation that is domiciled in this state, the name and contact
information for the company's agent for service of process in this state;

(5) the name, address, and contact information for an individual or corporation,
partnership, limited liability company, association, or other business entity that owns ten
percent or more of the appraisal management company;

(6) the name, address, and contact information for a controlling person or persons;

(7) a certification that the entity has a system and process in place to verify that a person
being added to the employment or appraiser panel of the appraisal management company
for appraisal services within this state holds an active appraisal license in this state pursuant
to chapter 82B if a license is required to perform appraisals;

(8) a certification that the entity has a system in place to review the work of all employed
and independent appraisers that are performing real estate appraisal services for the appraisal
management company on a periodic basis to verify that the real estate appraisal assignments
are being conducted in accordance with USPAP and chapter 82B;

(9) a certification that the entity maintains a detailed record of each service request that
it receives and the independent appraiser that performs the real estate appraisal services for
the appraisal management company, pursuant to section 82C.13;

(10) a certification that the employees of the appraisal management company will be
appropriately trained and familiar with the appraisal process;

(11) a certification that the appraisal management company has a system and process
in place to verify that a person being added to the appraiser panel of the appraisal
management company holds a license in good standing in this state pursuant to chapter 82B;
deleted text begin and
deleted text end

(12) an irrevocable Uniform Consent to Service of Process, pursuant to section 82C.07deleted text begin.deleted text endnew text begin;
and
new text end

new text begin (13) any information necessary for the commissioner to collect and transmit any required
National Registry fees under section 82C.08, subdivision 2, paragraph (c).
new text end

Sec. 2.

Minnesota Statutes 2018, section 82C.06, is amended to read:


82C.06 EXEMPTIONS.

This chapter does not apply to:

(1) a person that exclusively employs appraisers on an employer and employee basis
for the performance of appraisals, and:

(i) the employer is responsible for ensuring that the appraisals are performed by
employees in accordance with USPAP; and

(ii) the employer accepts all liability associated with the performance of the appraisal
by the employee;

(2) a department or unit within a financial institution that is subject to direct regulation
by an agency of the United States government, or to regulation by an agency of this state,
that receives a request for the performance of an appraisal from one employee of the financial
institution, and another employee of the same financial institution assigns the request for
the appraisal to an appraiser that is an independent contractor to the institution, except that
an appraisal management company that is a wholly owned subsidiary of a financial institution
shall not be considered a department or unit within a financial institution to which the
provisions of this chapter do not apply;

(3) a person that enters into an agreement, whether written or otherwise, with an appraiser
for the performance of an appraisal, and upon the completion of the appraisal, the report of
the appraiser performing the appraisal is signed by both the appraiser who completed the
appraisal and the appraiser who requested the completion of the appraisal, except that an
appraisal management company may not avoid the requirements of this chapter by requiring
that an employee of the appraisal management company that is an appraiser to sign an
appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal
management company; deleted text beginor
deleted text end

(4) any governmental agency performing appraisals on behalf of that level of government
or any agency performing ad valorem tax appraisals for county assessorsnew text begin; or
new text end

new text begin (5) an appraisal management company that is a subsidiary owned and controlled by a
financial institution regulated by a federal financial institution regulatory agency, except
that it must provide the fees and information required to be collected by the commissioner
pursuant to section 82C.08, subdivision 2, paragraph (c), for transmission to the Appraisal
Subcommittee for the National Registry
new text end.

Sec. 3.

Minnesota Statutes 2018, section 82C.08, subdivision 1, is amended to read:


Subdivision 1.

Establishment and retention.

new text beginExcept as provided in subdivision 2,
paragraph (c),
new text endthe fees shall be retained by the commissioner for the sole purpose of
administering this licensing and regulation program.

Sec. 4.

Minnesota Statutes 2018, 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 its expiration
with the renewal fee of $2,500.

new text begin (c) The commissioner must collect from appraisal management companies and federally
regulated appraisal management companies operating in Minnesota any fees and information
required by the Appraisal Subcommittee for the National Registry. The commissioner must
transmit the fees and information collected under this paragraph to the Appraisal
Subcommittee.
new text end