Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 97-S.F.No. 1315 
           An act relating to commerce; real estate appraisers; 
          amending Minnesota Statutes 1990, sections 82B.02, 
          subdivisions 8 and 12; 82B.05, subdivision 1; 82B.11; 
          82B.13, subdivision 1, and by adding subdivisions; 
          82B.14; 82B.15, subdivision 3; 82B.17; 82B.18; and 
          82B.19, subdivision 3; proposing coding for new law in 
          Minnesota Statutes, chapter 82B; repealing Minnesota 
          Statutes 1990, sections 82B.05, subdivision 2; 82B.13, 
          subdivision 2; and 82B.225. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 82B.02, 
subdivision 8, is amended to read: 
    Subd. 8.  [LICENSED REAL ESTATE APPRAISER.] "Licensed Real 
estate appraiser" means a person who develops and communicates 
real estate appraisals and who holds a current, valid license 
issued for licensed appraisal level I or II under this chapter, 
including an appraiser employed by a state agency. 
    Sec. 2.  Minnesota Statutes 1990, section 82B.02, 
subdivision 12, is amended to read: 
    Subd. 12.  [STANDARDS OF PROFESSIONAL PRACTICE.] "Standards 
of professional practice" means the uniform standards of 
professional appraisal practice adopted by of the Appraisers 
Standards Board of the Appraisal Foundation in effect as of 
January 1, 1989 1991, or other version of these standards the 
commissioner may by order designate. 
    Sec. 3.  Minnesota Statutes 1990, section 82B.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION MEMBERS.] The real estate 
appraiser advisory board consists of 15 members appointed by the 
commissioner of commerce.  Three of the members must be public 
members, four must be consumers of appraisal services, and eight 
must be licensed real estate appraisers of whom not less than 
two members shall be level II.  Mere membership in an 
organization does not make a person the organization's 
representative on the board state real property appraisers, 
federal residential real property appraisers, or certified 
federal residential real property appraisers and not less than 
two members shall be certified federal general real property 
appraisers. 
    Sec. 4.  Minnesota Statutes 1990, section 82B.11, is 
amended to read: 
    82B.11 [CLASSES OF LICENSE.] 
    Subdivision 1.  [GENERALLY.] There are two five classes of 
license for licensed real estate appraisers. 
    Subd. 2.  [LEVEL I STATE REAL PROPERTY APPRAISER.] The 
licensed level I residential When a net income capitalization 
analysis is not required by the uniform standards of 
professional appraisal practice, a state real estate property 
appraiser is a person meeting the requirements for licensing 
relating to the appraisal of may appraise residential real 
property or agricultural acreage when a net income 
capitalization analysis is not required by the uniform standards 
of professional appraisal practice property. 
    Subd. 3.  [LEVEL II FEDERAL RESIDENTIAL REAL PROPERTY 
APPRAISER.] The licensed level II real estate appraiser is a 
person meeting the requirements for licensing relating to the 
appraisal of all types of real property A federal residential 
real property appraiser may appraise noncomplex one to four 
residential units having a transaction value less than 
$1,000,000 and complex one to four residential units having a 
transaction value less than $250,000. 
    Subd. 4.  [CERTIFIED FEDERAL RESIDENTIAL REAL PROPERTY 
APPRAISER.] A certified federal residential real property 
appraiser may appraise one to four residential units without 
regard to transaction value or complexity. 
    Subd. 5.  [CERTIFIED FEDERAL GENERAL REAL PROPERTY 
APPRAISER.] A certified federal general real property appraiser 
may appraise all types of real property. 
    Subd. 6.  [TEMPORARY PRACTICE.] 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 prior to conducting appraisals within the 
state. 
    Sec. 5.  Minnesota Statutes 1990, section 82B.13, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LEVEL I CLASSIFICATION STATE REAL PROPERTY 
APPRAISER OR FEDERAL RESIDENTIAL REAL PROPERTY APPRAISER.] As a 
prerequisite to taking the examination for licensing as 
a licensed level I state real estate property appraiser or 
federal residential real property appraiser, an applicant must 
present evidence satisfactory to the commissioner that the 
person has successfully completed at least 75 classroom hours of 
courses.  The courses must consist of 60 hours of general real 
estate appraisal principles and 15 hours related to standards of 
professional appraisal practice and the provisions of this 
chapter.  
    Sec. 6.  Minnesota Statutes 1990, section 82B.13, is 
amended by adding a subdivision to read: 
    Subd. 4.  [CERTIFIED FEDERAL RESIDENTIAL REAL PROPERTY 
APPRAISER.] As a prerequisite to taking the examination for 
licensing as a certified federal residential real property 
appraiser, an applicant must present evidence satisfactory to 
the commissioner that the person has successfully completed at 
least 165 classroom hours of courses, including 15 hours related 
to the standards of professional appraisal practice and the 
provisions of this chapter, with particular emphasis on the 
appraisal of one to four unit residential properties. 
    Sec. 7.  Minnesota Statutes 1990, section 82B.13, is 
amended by adding a subdivision to read: 
    Subd. 5.  [CERTIFIED FEDERAL GENERAL REAL PROPERTY 
APPRAISER.] As a prerequisite to taking the examination for 
licensing as a certified federal general real property 
appraiser, an applicant must present evidence satisfactory to 
the commissioner that the person has successfully completed at 
least 165 classroom hours of courses, including 15 hours related 
to the standards of professional appraisal practice and the 
provisions of this chapter, with particular emphasis on the 
appraisal of nonresidential properties. 
    Sec. 8.  Minnesota Statutes 1990, section 82B.14, is 
amended to read: 
    82B.14 [EXPERIENCE REQUIREMENT.] 
    (a) An original A license as a level II licensed real 
estate appraiser under section 82B.11, subdivision 3, 4, or 5, 
may not be issued to a person who does not have the equivalent 
of two years of experience in real property appraisal supported 
by adequate written reports or file memoranda.  This experience, 
or the equivalent of this experience, must be acquired within a 
period of five years immediately preceding the filing of the 
application for licensing. 
    (b) Each applicant for license as a level II licensed real 
estate appraiser 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 each year 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. 
    Sec. 9.  Minnesota Statutes 1990, section 82B.15, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROCEDURE.] Service of process under this 
section may be made by filing a copy of the process with the 
commissioner or a representative, but is not effective 
unless: under the provisions of section 45.028.  
    (1) the plaintiff, who may be the commissioner in an action 
or proceeding started by the commissioner, sends notice of the 
service and a copy of the process by certified mail to the 
defendant or respondent at the address as shown by the records 
at the office of the commissioner in the case of service made on 
the commissioner as attorney by appointment under subdivision 1, 
and at the defendant's or respondent's last known address in the 
case of service on the commissioner as attorney by appointment 
under subdivision 2; and 
    (2) the plaintiff's affidavit of compliance with this 
subdivision is filed in the action or proceeding on or before 
the return day of the process, if any, or within any additional 
time the court or administrative law judge allows. 
    Sec. 10.  Minnesota Statutes 1990, section 82B.17, is 
amended to read: 
    82B.17 [LICENSE DESIGNATION.] 
    When a licensed real estate appraiser uses the designation 
real estate appraiser or licensed real estate appraiser similar 
terms in an appraisal report or in a contract or other 
instrument used by the license holder in conducting real 
property appraisal activities or in advertisements, the 
appraiser shall place the person's appraiser's license number 
adjacent to or immediately below the designation used and 
indicate the class of license held. 
    Sec. 11.  Minnesota Statutes 1990, section 82B.18, is 
amended to read: 
    82B.18 [USE OF TERM.] 
    The term "licensed real estate appraiser" may only be used 
to refer to individuals who hold the a license under this 
chapter.  The term may not be used following or immediately in 
connection with the name or signature of a firm, partnership, 
corporation, or group; or in a manner that might cause it to be 
interpreted as referring to a firm, partnership, corporation, 
group, or anyone other than an individual holder of the license. 
    No license may be issued under this chapter to a 
corporation, partnership, firm, or group.  This does not prevent 
a licensed real estate appraiser from signing an appraisal 
report on behalf of a corporation, partnership, firm, or group 
practice. 
    Sec. 12.  Minnesota Statutes 1990, section 82B.19, 
subdivision 3, is amended to read: 
    Subd. 3.  [REINSTATEMENTS.] On or after September 1, 1991, 
A license as a real estate appraiser that has been revoked as a 
result of disciplinary action by the commissioner may not be 
reinstated unless the applicant presents evidence of completion 
of the continuing education required by this chapter.  This 
requirement may not be imposed upon an applicant for 
reinstatement who has been required to successfully complete the 
examination for licensed real estate appraiser as a condition to 
reinstatement of a license. 
    Sec. 13.  [82B.221] [TRANSITION PERIOD PROVISIONS.] 
    (a) The commissioner may issue a license as provided under 
section 82B.11, subdivision 3, 4, or 5, to a person who 
satisfies the requirements of sections 82B.10, 82B.12, and 
82B.13, but has not satisfied the requirement of section 82B.14, 
provided the person provides evidence satisfactory to the 
commissioner that they have acquired the equivalent of two years 
of experience in real property appraisal by September 1, 1993. 
    (b) The commissioner may issue a license as provided under 
section 82B.11, subdivision 3, 4, or 5, to a person who has 
satisfied the requirements of sections 82B.10, 82B.12, and 
82B.14, but who has not satisfied the requirements of section 
82B.13, provided the person provides evidence satisfactory to 
the commissioner of completion of the appropriate licensing 
prerequisite education by September 1, 1993. 
    (c) Failure to meet the requirements of paragraph (a) or 
(b) of this section shall be grounds for revocation of a real 
estate appraiser's license. 
    Sec. 14.  [82B.23] [FEDERAL CERTIFICATION.] 
    Subdivision 1.  [REQUIREMENT.] The commissioner shall 
certify and transmit to the appraisal subcommittee established 
pursuant to the Federal Institutions Reform, Recovery, and 
Enforcement Act of 1989, Public Law Number 100-73, the names of 
those licensees who have satisfied the requirements for 
certification established by the appraisal subcommittee and to 
collect and transmit any required fees. 
    Subd. 2.  [PUBLICATION OF FEDERAL CERTIFICATION 
CRITERIA.] The commissioner shall file the federal certification 
criteria with the revisor of statutes for publication in 
Minnesota Rules.  The revisor has the same editorial power over 
these criteria as the revisor has for rules adopted pursuant to 
chapter 14. 
    Sec. 15.  [EXISTING LICENSES.] 
    Licenses issued pursuant to Minnesota Statutes, chapter 
82B, before the effective date of this act remain valid and in 
effect until September 1, 1991.  A licensee who satisfies the 
examination or education requirements of Minnesota Statutes, 
section 82B.225, no later than August 31, 1991, is eligible for 
licensure under Minnesota Statutes, section 82B.11, subdivision 
2. 
    Sec. 16.  [FEDERAL RESIDENTIAL REAL PROPERTY APPRAISER 
TRANSITIONAL PREEXAMINATION EDUCATION REQUIREMENT.] 
    Prior to January 1, 1994, as a prerequisite to taking the 
examination for licensing as a certified federal residential 
real property appraiser, an applicant must present evidence 
satisfactory to the commissioner that the person has 
successfully completed at least 105 classroom hours of courses, 
including 15 hours related to the standards of professional 
appraisal practice and the provisions of this chapter, with 
particular emphasis on the appraisal of one to four unit 
residential properties. 
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1990, sections 82B.05, subdivision 2; 
82B.13, subdivision 2; and 82B.225, are repealed. 
    Sec. 18.  [EFFECTIVE DATE.] 
    This act is effective the day after final enactment. 
    Presented to the governor May 14, 1991 
    Signed by the governor May 17, 1991, 11:26 a.m.