language to be deleted (2) new language
CHAPTER 387-S.F.No. 3024 An act relating to commerce; providing certain cosmetology definitions; regulating insurance coverages offered by, and continuing education and licensing requirements for, certain licensees; regulating the contractor's recovery fund; providing for the adoption and amendment of uniform conveyancing forms; making a technical correction in an appropriation to the department; regulating meetings of the assigned risk plan review board; amending Minnesota Statutes 2000, sections 62A.02, subdivision 2, as amended; 62D.02, subdivision 8; 62D.30, subdivision 8, as added; 79.251, subdivision 1; 79.252, subdivision 3; 82.20, subdivision 13; 82.22, subdivision 6; 82B.19, subdivision 1; 82B.21; 155A.03, by adding subdivisions; 155A.07, by adding a subdivision; 326.975, by adding subdivisions; 507.09; Minnesota Statutes 2001 Supplement, section 82.22, subdivision 13; Laws 2002, chapter 330, section 36; Laws 2002, chapter 336, section 5; proposing coding for new law in Minnesota Statutes, chapter 62D; Minnesota Rules, part 2765.1300, subparts 2, 5. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2000, section 62A.02, subdivision 2, as amended by Laws 2002, chapter 330, section 8, is amended to read: Subd. 2. [APPROVAL.] (a) The health plan form shall not be issued, nor shall any application, rider, endorsement, or rate be used in connection with it, until the expiration of 60 days after it has been filed unless the commissioner approves it before that time. (b) Notwithstanding paragraph (a), a rate filed with respect to a policy of accident and sickness insurance as defined in section 62A.01 by an insurer licensed under chapter 60A, may be used on or after the date of filing with the commissioner. Rates that are not approved or disapproved within the 60-day time period are deemed approved. This paragraph does not apply to medicare-related coverage as defined in section 62A.31, subdivision 3, paragraph (q). Sec. 2. Minnesota Statutes 2000, section 62D.02, subdivision 8, is amended to read: Subd. 8. [HEALTH MAINTENANCE CONTRACT.] "Health maintenance contract" means any contract whereby a health maintenance organization agrees to provide to enrollees comprehensive health maintenance services
to enrollees, provided thatand any other health care service set forth in the contract. The contract may contain reasonableenrollee copaymentcost-sharing provisions if the provisions meet the requirements of section 62D.095. An individual or group health maintenance contract may contain the copayment and deductible provisions specified in this subdivision. Copayment and deductible provisions in group contracts shall not discriminate on the basis of age, sex, race, length of enrollment in the plan, or economic status; and during every open enrollment period in which all offered health benefit plans, including those subject to the jurisdiction of the commissioners of commerce or health, fully participate without any underwriting restrictions, copayment and deductible provisions shall not discriminate on the basis of preexisting health status. In no event shall the sum of the annual copayments and deductible exceed the maximum out-of-pocket expenses allowable for a number three qualified plan under section 62E.06, nor shall that sum exceed $5,000 per family. The annual deductible must not exceed $1,000 per person. The annual deductible must not apply to preventive health services as described in Minnesota Rules, part 4685.0801, subpart 8. Where sections 62D.01 to 62D.30 permit a health maintenance organization to contain reasonable copayment provisions for preexisting health status, these provisions may vary with respect to length of enrollment in the plan. Any contract may provide for health care services in addition to those set forth in subdivision 7.Sec. 3. [62D.095] [ENROLLEE COST SHARING.] Subdivision 1. [GENERAL APPLICATION.] A health maintenance contract may contain enrollee cost-sharing provisions as specified in this section. Co-payment and deductible provisions in a group contract must not discriminate on the basis of age, sex, race, disability, economic status, or length of enrollment in the health plan. During an open enrollment period in which all offered health plans fully participate without any underwriting restrictions, co-payment and deductible provisions must not discriminate on the basis of preexisting health status. Subd. 2. [CO-PAYMENTS.] (a) A health maintenance contract may impose a co-payment as authorized under Minnesota Rules, part 4685.0801. (b) If a health maintenance contract is permitted to impose a co-payment for preexisting health status under sections 62D.01 to 62D.30, these provisions may vary with respect to length of enrollment in the health plan. Subd. 3. [DEDUCTIBLES.] (a) A health maintenance contract issued by a health maintenance organization that is assessed less than three percent of the total annual amount assessed by the Minnesota comprehensive health association may impose deductibles not to exceed $3,000 per person, per year and $6,000 per family, per year. For purposes of the percentage calculation, a health maintenance organization's assessments include those of its affiliates. (b) All other health maintenance contracts may impose deductibles not to exceed $2,250 per person, per year and $4,500 per family, per year. Subd. 4. [ANNUAL OUT-OF-POCKET MAXIMUMS.] (a) A health maintenance contract issued by a health maintenance organization that is assessed less than three percent of the total annual amount assessed by the Minnesota comprehensive health association must include a limitation not to exceed $4,500 per person and $7,500 per family on total annual out-of-pocket enrollee cost-sharing expenses. For purposes of the percentage calculation, a health maintenance organization's assessments include those of its affiliates. (b) All other health maintenance contracts must include a limitation not to exceed $3,000 per person and $6,000 per family on total annual out-of-pocket enrollee cost-sharing expenses. Subd. 5. [EXCEPTIONS.] No co-payments or deductibles may be imposed on preventive health care services as described in Minnesota Rules, part 4685.0801, subpart 8. Sec. 4. Minnesota Statutes 2000, section 62D.30, subdivision 8, as added by Laws 2002, chapter 346, section 1, is amended to read: Subd. 8. [RURAL DEMONSTRATION PROJECT.] (a) The commissioner may permit demonstration projects to allow health maintenance organizations to extend coverage to a health improvement and purchasing coalition located in rural Minnesota, comprised of the health maintenance organization and members from a geographic area. For purposes of this subdivision, rural is defined as greater Minnesota excluding the seven-county metropolitan area of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The coalition must be designed in such a way that members will: (1) become better informed about health care trends and cost increases; (2) be actively engaged in the design of health benefit options that will meet the needs of their community; (3) pool their insurance risk; (4) purchase these products from the health maintenance organization involved in the demonstration project; and (5) actively participate in health improvement decisions for their community. (b) The commissioner must consider the following when approving applications for rural demonstration projects: (1) the extent of consumer involvement in development of the project; (2) the degree to which the project is likely to reduce the number of uninsured or to maintain existing coverage; and (3) a plan to evaluate and report to the commissioner and legislature as prescribed by paragraph (e). (c) For purposes of this subdivision, the commissioner must waive compliance with the following statutes and rules: the cost-sharing restrictions under section 62D.02, subdivision 8, which for purposes of this subdivision is the sum of the annual copayments and deductible which is prohibited from exceeding the maximum out-of-pocket expenses allowable for a number three qualified plan under section 62E.06 or $5,000 per family and an annual deductible of $1,000 per person62D.095, subdivisions 2, 3, and 4, and Minnesota Rules, part 4685.0801, subparts 1 to 7; for a period of at least two years, participation in government programs under section 62D.04, subdivision 5, in the counties of the demonstration project if that compliance would have been required solely due to participation in the demonstration project and shall continue to waive this requirement beyond two years if the enrollment in the demonstration project is less than 10,000 enrollees; small employer marketing under section 62L.05, subdivisions 1 to 3; and small employer geographic premium variations under section 62L.08, subdivision 4. The commissioner shall approve enrollee cost-sharing features desired by the coalition that appropriately share costs between employers, individuals, and the health maintenance organization. (d) The health maintenance organization may make the starting date of the project contingent upon a minimum number of enrollees as cited in the application, provide for an initial term of contract with the purchasers of a minimum of three years, and impose a reasonable penalty for employers who withdraw early from the project. For purposes of this subdivision, loss ratios are to be determined as if the policies issued under this section are considered individual or small employer policies pursuant to section 62A.021, subdivision 1, paragraph (f). The health maintenance organization may consider businesses of one to be a small employer under section 62L.02, subdivision 26. The health maintenance organization may limit enrollment and establish enrollment criteria for businesses of one. Health improvement and purchasing coalitions under this subdivision are not associations under section 62L.045, subdivision 1, paragraph (a). (e) The health improvement and purchasing coalition must report to the commissioner and legislature annually on the progress of the demonstration project and, to the extent possible, any significant findings in the criteria listed in clauses (1), (2), and (3) for the final report. The coalition must submit a final report five years from the starting date of the project. The final report must detail significant findings from the project and must include, to the extent available, but should not be limited to, information on the following: (1) the extent to which the project had an impact on the number of uninsured in the project area; (2) the effect on health coverage premiums for groups in the project's geographic area, including those purchasing health coverage outside the health improvement and purchasing coalition; and (3) the degree to which health care consumers were involved in the development and implementation of the demonstration project. (f) The commissioner must limit the number of demonstration projects under this subdivision to five projects. (g) Approval of the application for the demonstration project is deemed to be in compliance with sections 62E.03 and 62E.06, subdivisions 1, paragraph (a), 2, and 3. (h) Subdivisions 2 to 7 apply to demonstration projects under this subdivision. Waivers permitted under subdivision 1 do not apply to demonstration projects under this subdivision. (i) If a demonstration project under this subdivision works in conjunction with a purchasing alliance formed under chapter 62T, that chapter will apply to the purchasing alliance except to the extent that chapter 62T is inconsistent with this subdivision. Sec. 5. Minnesota Statutes 2000, section 79.251, subdivision 1, is amended to read: Subdivision 1. [ ASSIGNED RISK PLAN REVIEW BOARDGENERAL DUTIES OF COMMISSIONER.] (1) An assigned risk plan review board is created for the purposes of review of the operation of section 79.252 and this section.The boardcommissioner shall have all the usual powers and authorities necessary for the discharge of itsthe commissioner's duties under this section and may contract with individuals in discharge of those duties. (2) The board shall consist of six members to be appointed by the commissioner of commerce. Three members shall be insureds holding policies or contracts of coverage issued pursuant to subdivision 4. Two members shall be insurers licensed pursuant to section 60A.06, subdivision 1, clause (5), paragraph (b). The commissioner shall be the sixth member and shall vote. Initial appointments shall be made by September 1, 1981, and terms shall be for three years duration. Removal, the filling of vacancies and compensation of the members other than the commissioner shall be as provided in section 15.059. (3)The assigned risk plan review boardcommissioner shall audit the reserves established (a) for individual cases arising under policies and contracts of coverage issued under subdivision 4 and (b) for the total book of business issued under subdivision 4. (4)(2) The assigned risk plan review boardcommissioner shall monitor the operations of section 79.252 and this section and shall periodically make recommendations to the commissioner, and tothe governor and legislature when appropriate, for improvement in the operation of those sections. (5)(3) All insurers and self-insurance administrators issuing policies or contracts under subdivision 4 shall pay to the commissioner a .25 percent assessment on premiums for policies and contracts of coverage issued under subdivision 4 for the purpose of defraying the costs of the assigned risk plan review boardperforming the duties under clauses (1) and (2). Proceeds of the assessment shall be deposited in the state treasury and credited to the general fund. (6)(4) The assigned risk plan and the assigned risk plan review boardshall not be deemed a state agency. Sec. 6. Minnesota Statutes 2000, section 79.252, subdivision 3, is amended to read: Subd. 3. [COVERAGE.] (a) Policies and contracts of coverage issued pursuant to section 79.251, subdivision 4, shall contain the usual and customary provisions of workers' compensation insurance policies, and shall be deemed to meet the mandatory workers' compensation insurance requirements of section 176.181, subdivision 2. (b) Policies issued by the assigned risk plan pursuant to this chapter may also provide workers' compensation coverage required under the laws of states other than Minnesota, including coverages commonly known as "all states coverage." The assigned risk plan review boardcommissioner may apply for and obtain any licensure required in any other state to issue that coverage. Sec. 7. Minnesota Statutes 2000, section 82.20, subdivision 13, is amended to read: Subd. 13. [LIMITED BROKER'S LICENSE.] (a) The commissioner shall have the authority to issue a limited real estate broker's license authorizing the licensee to engage in transactions as principal only. Such license shall be issued only after receipt of the application described in subdivision 3 and payment of the fee prescribed by section 82.21, subdivision 1. No salesperson may be licensed to act on behalf of an individual holding a limited broker's license. An officer of a corporation or partner of a partnership licensed as a limited broker may act on behalf of that corporation or partnership without being subject to the licensing requirements. (b) A limited broker's license shall also authorize the licensee to engage in negotiation of mortgage loans, other than residential mortgage loans, as described in section 82.17, subdivision 4, clause (b). Sec. 8. Minnesota Statutes 2000, section 82.22, subdivision 6, is amended to read: Subd. 6. [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. Every salesperson shall, within one year of licensure, be required to successfully complete a course of study in the real estate field consisting of 30 hours of instruction approved by the commissioner.(b) 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. The commissioner shall not approve any course offered by, sponsored by, or affiliated with any person or company licensed to engage in the real estate business. The commissioner may by rule prescribe the curriculum and qualification of those employed as instructors. (c) 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. The course must have been completed within six12 months prior to the date of application for the broker's license. (d) 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. 9. Minnesota Statutes 2001 Supplement, section 82.22, subdivision 13, is amended to read: Subd. 13. [CONTINUING EDUCATION.] (a) After their first renewal date,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. At least 15 of the 30 credit hours must be completed during the first 12 months of the 24-month licensing period. Salespersons and brokers whose initial license period extends more than 12 months are required to complete 15 hours of real estate continuing education during the initial license period. Those licensees who will receive a 12-month license on July 1, 1995, because of the staggered implementation schedule must complete 15 hours of real estate continuing education as a requirement for renewal on July 1, 1996.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 shall adopt rules defining the standards for course and instructor approval, and may adopt rules for the proper administration of this subdivision. 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. Courses in motivation, salesmanship, psychology, or time management shall not be approved by the commissioner 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, 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 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 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. (g) No more than one-half of the credit hours per licensing period, including continuing education required under subdivision 6, may be credited to a person for attending any combination of courses either: (1) sponsored by, offered by, or affiliated with a real estate company or its agents; or (2) offered using new delivery technology, including interactive technology, and the Internet. Sec. 10. Minnesota Statutes 2000, 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. As part of the continuing education requirements of this section, the commissioner shall require that all real estate appraisers receive at least fourseven hours of training each license period in courses in laws or regulations on standards of professional practice. 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. If the immediately preceding term of licensing consisted of fewer than 12 months, no continuing education need be reported. Sec. 11. Minnesota Statutes 2000, section 82B.21, is amended to read: 82B.21 [CLASSIFICATION OF SERVICES.] A client or employer may retain or employ a licensed real estate appraiser to act as a disinterested third party in giving an unbiased estimate of value or analysis . A client or employer may also retain or employ a licensed real estate appraiser; to provide a market analysis to facilitate the client's or employer's objectives; or to perform a limited appraisal. In either case,The appraisal and the appraisal report must comply with the provisions of this chapter and the uniform standards of professional appraisal practice. Sec. 12. Minnesota Statutes 2000, section 155A.03, is amended by adding a subdivision to read: Subd. 14. [LICENSED SALON.] "Licensed salon" means a salon licensed in Minnesota. Sec. 13. Minnesota Statutes 2000, section 155A.03, is amended by adding a subdivision to read: Subd. 15. [LICENSED SCHOOL.] "Licensed school" means a school licensed in Minnesota. Sec. 14. Minnesota Statutes 2000, section 155A.07, is amended by adding a subdivision to read: Subd. 9. [NONRESIDENT LICENSES.] Notwithstanding the absence of a written reciprocal licensing agreement under section 45.0292, a nonresident cosmetologist, manicurist, or esthetician may be licensed in Minnesota if the individual has completed cosmetology school in a state with the same or greater school hour requirements, has an active license in that state, and has passed the Minnesota-specific written operator examination for cosmetologist, manicurist, or esthetician. Licenses shall not be issued under this subdivision for managers or instructors. Sec. 15. Minnesota Statutes 2000, section 326.975, is amended by adding a subdivision to read: Subd. 1a. [LIMITATION.] Nothing may obligate the fund for claims brought by: (1) insurers or sureties under subrogation or similar theories; or (2) owners of residential property where the contracting activity complained of was the result of a contract entered into with a prior owner, unless the claim is brought and judgment rendered for breach of the statutory warranty set forth in chapter 327A. Sec. 16. Minnesota Statutes 2000, section 326.975, is amended by adding a subdivision to read: Subd. 1b. [CONDOMINIUMS OR TOWNHOUSES.] For purposes of this section, the owner or lessee of a condominium or townhouse is considered an owner or lessee of residential property regardless of the number of residential units per building. Sec. 17. Minnesota Statutes 2000, section 507.09, is amended to read: 507.09 [FORMS APPROVED; AMENDMENTS.] The several forms of deeds, mortgages, land contracts, assignments, satisfactions, and other conveyancing instruments prepared by the uniform conveyancing blanks commission and filed by the commission with the secretary of state pursuant to Laws 1929, chapter 135, as amended by Laws 1931, chapter 34, are approved and recommended for use in the state. Such forms shall be kept on file with and be preserved by the commissioner of commerce as a public record. The commissioner of commerce may appoint an advisory task force on uniform conveyancing forms to recommend to the commissioner of commerce amendments to existing forms or the adoption of new forms. The task force shall expire, and the terms, compensation, and removal of members shall be as provided in section 15.059. The commissioner of commerce may adopt amended or new forms consistent with the laws of this state by complying with the procedures in section 14.386, paragraph (a), clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these formsorder. Sec. 18. Laws 2002, chapter 330, section 36, is amended to read: Sec. 36. [EFFECTIVE DATE.] Sections 7 and 30 are effective the day following final enactment. Section 3 is effective for dividends paid after December 31, 2000. Sections 8 and 9 are effective July 1, 2002. Sec. 19. Laws 2002, chapter 336, section 5, is amended to read: Sec. 5. [APPROPRIATION.] $70,000 is appropriated from the general fund to the commissioner of commerce for the purpose of verifying premiums in order to certify the $250,000 premium threshold under Minnesota Statutes, section 79.56, subdivision 3. The appropriation is available until June 30, 2003, and shall become part of the agency base for fiscal years 2004 and 2005. Sec. 20. Minnesota Rules, part 2765.1300, subpart 2, is amended to read: Subp. 2. Individual excess. A plan must have and maintain individual excess stop-loss insurance, that provides for the insurer to assume all liability in excess of $25,000the per person limit per year under all coverages the plan offers. The reporting period under this coverage must be no less than one year after the fund year's conclusion. A plan maymust apply to the commissioner for increasinga determination of the individual excess stop-loss insurance limit , up to $50,000. The commissioner must approve thisthe application if the increasedlimit would not be detrimental to the solvency and stability of the plan, considering the plan's experience, size, surplus, and other factors affecting financial integrity. Sec. 21. Minnesota Rules, part 2765.1300, subpart 5, is amended to read: Subp. 5. Surety coverage. A plan must have and maintain the following language in its required aggregate excess stop-loss insurance policy, unless the commissioner determines that a policy with that language is not available in the market for stop-loss coverage, in which case, the commissioner may determine the requirements needed to obtain stop-loss coverage and meet solvency requirements: "The insurer shall, at the commissioner's request, assume direct responsibility for the plan's coverage and all other responsibilities under this chapter and related statutes, if the plan becomes insolvent, ceases operations without authorization, or otherwise fails to fulfill its responsibilities under this chapter and related statutes. The insurer may attempt to collect reimbursement from the plan or a member on whose behalf the insurer is called upon to pay premium, pay claims, or incur other extraordinary expenses. However, the insurer must fulfill its responsibilities under this section while any collection attempts are pending. The insurer's responsibilities extend to all matters arising during or attributable to the policy period, and do not terminate with the end of the policy period." The policy must not alter or qualify these terms to harm the plan's rights materially. Sec. 22. [MEETINGS IN 2002; ASSIGNED RISK PLAN REVIEW BOARD.] The assigned risk plan review board must meet at least once no later than December 31, 2002. This section expires on that date. Sec. 23. [EFFECTIVE DATES.] Sections 7, 11 to 19, and 22 are effective the day following final enactment. Section 1 is effective July 1, 2002. Sections 8 and 9 are effective the day following final enactment, for licenses issued or renewed on or after that date. Sections 2, 3, 4, 20, and 21 are effective August 1, 2002. Sections 5 and 6 are effective January 1, 2003. Section 10 is effective September 1, 2003, for renewals on or after that date. Presented to the governor May 20, 2002 Signed by the governor May 22, 2002, 1:19 p.m.