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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 100-S.F.No. 1815 
                  An act relating to commerce; modifying various 
                  requirements for licensees of the Department of 
                  Commerce; amending Minnesota Statutes 2004, sections 
                  60K.36, subdivision 2; 60K.37, subdivision 1; 60K.38, 
                  subdivision 1; 60K.39, subdivision 3; 82.31, 
                  subdivision 5; 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, 
                  chapters 45; 82B; 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.  [45.21] [APPLICATION FEES.] 
           Subdivision 1.  [FEE REFUNDS.] 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. 
           Subd. 2.  [WITHDRAWAL OF APPLICATION.] 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        is incomplete is considered withdrawn if the applicant does not 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        if an application is withdrawn according to this subdivision. 
           Sec. 2.  [45.22] [LICENSE EDUCATION.] 
           (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. 
           (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. 
           Sec. 3.  Minnesota Statutes 2004, section 60K.36, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXAMINATION NOT REQUIRED.] A resident individual 
        applying for a limited lines credit insurance, title insurance, 
        travel baggage insurance, mobile telephone insurance, or bail 
        bonds license is not required to take a written examination. 
           Sec. 4.  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.  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.  
           Sec. 5.  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; 
           (5) mobile telephone insurance; and 
           (6) bail bonds; and 
           (6) any other line of insurance permitted under state laws 
        or rules. 
           Sec. 6.  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 or a resident producer who 
        moves from this state to another state 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. 7.  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.  If a new 
        examination is required, prelicense education must be completed 
        in accordance with section 82.29, subdivision 8.  
           Sec. 8.  Minnesota Statutes 2004, section 82B.02, is 
        amended by adding a subdivision to read: 
           Subd. 16.  [USPAP.] "USPAP" means the Uniform Standards of 
        Professional Appraisal Practice established by the Appraisal 
        Foundation. 
           Sec. 9.  [82B.095] [APPRAISER QUALIFICATION COMPONENTS.] 
           The three components required for a real property appraiser 
        license are education, experience, and examination.  Applicants 
        for a class of license must document that they have met at least 
        the component criteria that were in effect at the time they 
        completed that component. 
           Sec. 10.  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 one year two years of 
        the date of successful completion of the examination or a second 
        examination must be taken to qualify for the license.  
           Sec. 11.  Minnesota Statutes 2004, section 82B.11, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TEMPORARY PRACTICE.] (a) 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. 
           (b) The term of a temporary practice license is the lesser 
        of:  
           (1) the time required to complete the assignment; or 
           (2) six months, with one extension allowed.  
           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. 
           Sec. 12.  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 prelicense 
        courses.  The courses must consist of 75 hours of general real 
        estate appraisal principles and 15 hours related to standards of 
        professional appraisal practice and the provisions of this 
        chapter the 15-hour national USPAP course.  
           Sec. 13.  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.  The credit hours required under this section may be 
        credited to a person for distance education courses that meet 
        Appraiser Qualifications Board criteria. 
           Sec. 14.  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 prelicense 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.  Fifteen of the 120 
        hours must include successful completion of the 15-hour national 
        USPAP course. 
           Sec. 15.  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 prelicense 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.  Fifteen 
        of the 180 hours must include successful completion of the 
        15-hour national USPAP course. 
           Sec. 16.  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 obtained in 
        no fewer than 24 months. 
           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 obtained in 
        no fewer than 30 months.  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. 17.  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.  Classroom hour credit must not be accepted for 
        courses of less than two hours.  As part of the continuing 
        education requirements of this section, the commissioner shall 
        require that all real estate appraisers receive at least seven 
        hours of training each license period in courses in laws or 
        regulations on standards of professional practice successfully 
        complete the seven-hour national USPAP update course every two 
        years.  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. The credit 
        hours required under this section may be credited to a person 
        for distance education courses that meet Appraiser 
        Qualifications Board criteria. 
           Sec. 18.  [REPEALER.] 
           (a) Minnesota Statutes 2004, section 82B.221, is repealed. 
           (b) Minnesota Rules, part 2808.2200, is repealed. 
           Presented to the governor May 24, 2005 
           Signed by the governor May 27, 2005, 3:10 p.m.