Bill Text: MN SF650 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Insurance fraud prevention division renamed commerce fraud bureau; miscellaneous commerce department provisions modifications
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-17 - HF substituted on General Orders HF647 [SF650 Detail]
Download: Minnesota-2013-SF650-Engrossed.html
1.2relating to commerce; renaming the division of insurance fraud; regulating
1.3subpoenas issued by the commissioner; modifying certain continuing education
1.4requirements; requiring and regulating an annual statement of actuarial opinions
1.5of reserves and supporting documentation of property and casualty companies;
1.6modifying risk-based capital requirements for certain insurers; regulating real
1.7estate appraiser licenses; modifying service requests in connection with Public
1.8Utility Commission matters; repealing certain unnecessary laws;amending
1.9Minnesota Statutes 2012, sections 13.712, by adding a subdivision; 45.0135;
1.1045.027, subdivision 2; 45.307; 45.43; 60A.62, subdivision 1; 82B.08, by adding
1.11a subdivision; 82B.094; 82B.095, subdivision 2; 82B.10, subdivision 1; 82B.13,
1.12subdivisions 1, 4, 5, 8, by adding a subdivision; 216.17, subdivisions 2, 4;
1.13216B.18; 299C.40, subdivision 1; proposing coding for new law in Minnesota
1.14Statutes, chapter 60A; repealing Minnesota Statutes 2012, sections 82B.095,
1.15subdivision 1; 115C.09, subdivision 3k; Laws 2000, chapter 488, article 3,
1.16section 37.
1.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.18 Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a
1.19subdivision to read:
1.20 Subd. 4. Actuarial data. Actuarial reports and related data of the Department of
1.21Commerce are classified under section 60A.1296.
1.22 Sec. 2. Minnesota Statutes 2012, section 45.0135, is amended to read:
1.2345.0135DIVISION OF INSURANCE COMMERCE FRAUD PREVENTION
1.24 BUREAU.
1.25 Subd. 2a. Authorization. The commissioner may appoint peace officers, as defined
1.26in section626.84, subdivision 1 , paragraph (c), and establish a law enforcement agency, as
1.27defined in section626.84, subdivision 1 , paragraph (f), known as the Division of Insurance
1.28 Commerce FraudPrevention Bureau, to conduct investigations, and to make arrests under
2.1sections629.30 and
629.34 . The jurisdiction of the law enforcement agency is limited to
2.2offenses related to insurance fraud.
2.3 Subd. 2b. Duties. TheDivision of Insurance Commerce Fraud Prevention Bureau
2.4 shall:
2.5(1) review notices and reports of insurance fraud submitted by authorized insurers,
2.6their employees, and agents or producers;
2.7(2) respond to notifications or complaints of suspected insurance fraud generated by
2.8other law enforcement agencies, state or federal governmental units, or any other person;
2.9(3) initiate inquiries and conduct investigations when thedivision bureau has reason
2.10to believe that insurance fraud has been or is being committed; and
2.11(4) report incidents of alleged insurance fraud disclosed by its investigations to
2.12appropriate law enforcement agencies, including, but not limited to, the attorney general,
2.13county attorneys, or any other appropriate law enforcement or regulatory agency, and shall
2.14assemble evidence, prepare charges, and otherwise assist any law enforcement authority
2.15having jurisdiction.
2.16 Subd. 2c. Arrests and investigations. The initial processing of a person arrested
2.17by theDivision of Insurance Commerce Fraud Prevention Bureau for an offense within
2.18its jurisdiction is the responsibility of theDivision of Insurance Fraud Prevention bureau
2.19 unless otherwise directed by the law enforcement agency with primary jurisdiction.
2.20Subsequent investigation shall be the responsibility of theDivision of Insurance Fraud
2.21Prevention bureau unless otherwise directed by the law enforcement agency with primary
2.22jurisdiction. At the request of the primary jurisdiction, theDivision of Insurance Fraud
2.23Prevention bureau may assist in a subsequent investigation being carried out by the
2.24primary jurisdiction.
2.25 Subd. 2d. Policy for notice of investigations. TheDivision of Insurance Commerce
2.26 FraudPrevention Bureau must develop a policy for notifying the law enforcement agency
2.27with primary jurisdiction when it has initiated investigation of any person within the
2.28jurisdiction of that agency.
2.29 Subd. 2e. Chief law enforcement officer. The commissioner shall appoint a peace
2.30officer employed full time to be the chief law enforcement officer and to be responsible
2.31for the management of theDivision of Insurance Commerce Fraud Prevention Bureau.
2.32The chief law enforcement officer shall possess the necessary police and management
2.33experience to manage a law enforcement agency. The chief law enforcement officer
2.34may appoint, discipline, and discharge all employees of theDivision of Insurance Fraud
2.35Prevention bureau. All police managerial and supervisory personnel must be full-time
2.36employees of theDivision of Insurance Fraud Prevention bureau. Supervisory personnel
3.1must be on duty and available any time peace officers of theDivision of Insurance Fraud
3.2Prevention bureau are on duty.
3.3 Subd. 2f. Compliance. Except as otherwise provided in this section, theDivision of
3.4Insurance Fraud Prevention Commerce Fraud Bureau shall comply with all statutes and
3.5administrative rules relating to the operation and management of a law enforcement agency.
3.6 Subd. 3. Evidence, documentation, and related materials. If thedivision bureau
3.7 seeks evidence, documentation, and related materials pertinent to an investigation, and the
3.8matter is located outside of this state, thedivision bureau may designate representatives,
3.9including officials of the state where the matter is located, to secure the matter or inspect
3.10the matter on its behalf.
3.11 Subd. 4. Confidentiality and immunity. The provisions of chapter 13, including,
3.12but not limited to, section13.82 , apply to the classification, disclosure, and collection of
3.13data relating to theDivision of Insurance Commerce Fraud Prevention Bureau.
3.14 Subd. 5. Annual report on activities and cost-effectiveness. TheDivision of
3.15Insurance Commerce Fraud Prevention Bureau shall maintain records and information
3.16in order to produce an annual report of its activities as may be prescribed by the
3.17commissioner of commerce. The commissioner shall report annually to the house of
3.18representatives and senate standing committees with jurisdiction over insurance issues
3.19as to the activities of thedivision bureau and the cost-effectiveness of the programs
3.20established by thedivision bureau.
3.21 Subd. 6. Insurance fraud prevention account. The insurance fraud prevention
3.22account is created in the state treasury. Money received from assessments under subdivision
3.237 is deposited in the account. Money in this fund is appropriated to the commissioner of
3.24commerce for the purposes specified in this section and sections60A.951 to
60A.956 .
3.25 Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of
3.26Minnesota, including surplus lines carriers, and having Minnesota earned premium the
3.27previous calendar year shall remit an assessment to the commissioner for deposit in the
3.28insurance fraud prevention account on or before June 1 of each year. The amount of the
3.29assessment shall be based on the insurer's total assets and on the insurer's total written
3.30Minnesota premium, for the preceding fiscal year, as reported pursuant to section60A.13 .
3.31The assessment is calculated to be an amount up to the following:
4.3For purposes of this subdivision, the following entities are not considered to be
4.4insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or
4.5township mutuals organized under chapter 67A.
4.6 Subd. 8. Investigations; health-related boards. (a) TheDivision of Insurance
4.7 Commerce FraudPrevention Bureau may consult with the appropriate health-related board
4.8when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected
4.9of insurance fraud.
4.10(b) Thedivision bureau shall, for any conviction involving or related to insurance,
4.11send copies of all public data in its possession to the appropriate health-related licensing
4.12board.
4.13 Sec. 3. Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:
4.14 Subd. 2. Power to compel production of evidence. For the purpose of any
4.15investigation, hearing, proceeding, or inquiry related to the duties and responsibilities
4.16entrusted to the commissioner, the commissioner or a designated representative may
4.17administer oaths and affirmations, subpoena witnesses, compel their attendance, take
4.18evidence, and require the production of books, papers, correspondence, memoranda,
4.19agreements, or other documents or records that the commissioner considers relevant
4.20or material to the inquiry.
4.21A subpoena issued pursuant to this subdivision must state that the person to whom
4.22the subpoena is directed may not disclose the fact that the subpoena was issued or the fact
4.23that the requested records have been given to law enforcement personnel except:
4.24(1) insofar as the disclosure is necessary to find and disclose the records; or
4.25(2) pursuant to court order.
4.26 Sec. 4. Minnesota Statutes 2012, section 45.307, is amended to read:
4.2745.307 EDUCATION PROVIDER.
4.28 Subdivision 1. Duty to make records and data available to commissioner. A
4.29person applying for approval as an education provider must make available upon request
4.30such records and data required by the commissioner to administer the provisions and
4.31further the purposes of this chapter.
4.32 Subd. 2. Responsibility for actions of coordinators and instructors. An
4.33education provider is responsible for any actions taken by one or more of its coordinators
5.1or instructors in the course of performing activities associated with license education
5.2courses provided under this chapter.
5.3 Subd. 3. Responsibility for approval of coordinator. An education provider
5.4must ensure that an individual acting as a coordinator on its behalf under this chapter has
5.5received prior approval from the commissioner to act as a coordinator.
5.6 Sec. 5. Minnesota Statutes 2012, section 45.43, is amended to read:
5.745.43 REPORTING REQUIREMENTS.
5.8 Subdivision 1. Course completions. Required education must be reported in a
5.9manner prescribed by the commissioner within ten days of the course completion.
5.10 Subd. 2. Violations and penalties. (a) Each failure to report an individual licensee's
5.11course completion in the manner prescribed by subdivision 1 constitutes a separate
5.12violation.
5.13(b) The commissioner may impose a civil penalty not to exceed $500 per violation
5.14upon an education provider that violates subdivision 1.
5.15 Sec. 6. [60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING
5.16DOCUMENTATION.
5.17 Subdivision 1. Statement of actuarial opinion. Every property and casualty
5.18insurance company doing business in this state, unless otherwise exempted by the
5.19domiciliary commissioner, shall annually submit the opinion of an appointed actuary
5.20entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with
5.21the appropriate National Association of Insurance Commissioners (NAIC) Property and
5.22Casualty Annual Statement Instructions.
5.23 Subd. 2. Actuarial opinion summary. (a) Every property and casualty insurance
5.24company domiciled in this state that is required to submit a statement of actuarial opinion
5.25shall annually submit an actuarial opinion summary, written by the company's appointed
5.26actuary. This actuarial opinion summary must be filed in accordance with the appropriate
5.27NAIC Property and Casualty Annual Statement Instructions and must be considered as a
5.28document supporting the actuarial opinion required in subdivision 1.
5.29(b) A company licensed but not domiciled in this state shall provide the actuarial
5.30opinion summary upon request.
5.31 Subd. 3. Actuarial report and workpapers. (a) An actuarial report and its
5.32underlying workpapers as required by the appropriate NAIC Property and Casualty
5.33Annual Statement Instructions must be prepared to support each actuarial opinion.
6.1(b) If the insurance company fails to provide a supporting actuarial report and/or
6.2workpapers at the request of the commissioner or the commissioner determines that
6.3the supporting actuarial report or workpapers provided by the insurance company are
6.4otherwise unacceptable to the commissioner, the commissioner may engage a qualified
6.5actuary at the expense of the company to review the opinion and the basis for the opinion
6.6and prepare the supporting actuarial report or workpapers.
6.7 Subd. 4. Liability. The appointed actuary shall not be liable for damages to any
6.8person, other than the insurance company and the commissioner, for any act, error,
6.9omission, decision, or conduct with respect to the actuary's opinion, except in cases of
6.10fraud or willful misconduct on the part of the appointed actuary.
6.11EFFECTIVE DATE.This section is effective December 31, 2013.
6.12 Sec. 7. [60A.1296] CONFIDENTIALITY.
6.13 Subdivision 1. Actuarial opinion; public document. The statement of actuarial
6.14opinion must be provided with the annual statement in accordance with the appropriate
6.15National Association of Insurance Commissioners (NAIC) Property and Casualty Annual
6.16Statement Instructions and must be treated as a public document.
6.17 Subd. 2. Supporting materials; confidential and privileged. (a) Documents,
6.18materials, or other information in the possession or control of the Department of
6.19Commerce that are considered an actuarial report, workpapers, or actuarial opinion
6.20summary provided in support of the opinion, and any other material provided by the
6.21company to the commissioner in connection with the actuarial report, workpapers, or
6.22actuarial opinion summary, are confidential data on individuals or protected nonpublic
6.23data as defined in section 13.02, shall not be subject to subpoena, and shall not be subject
6.24to discovery or admissible in evidence in any private civil action.
6.25(b) This provision shall not be construed to limit the commissioner's authority to:
6.26(1) release the documents to the Actuarial Board for Counseling and Discipline
6.27(ABCD) so long as the material is required for the purpose of professional disciplinary
6.28proceedings and the ABCD establishes procedures satisfactory to the commissioner for
6.29preserving the confidentiality of the documents; or
6.30(2) use the documents, materials, or other information in furtherance of any
6.31regulatory or legal action brought as part of the commissioner's official duties.
6.32 Subd. 3. Protections. Neither the commissioner nor any person who received
6.33the documents, materials, or other information while acting under the authority of
6.34the commissioner shall be permitted or required to testify in any private civil action
6.35concerning any confidential documents, materials, or information subject to subdivision 2.
7.1 Subd. 4. Exceptions. In order to assist in the performance of the commissioner's
7.2duties, the commissioner:
7.3(1) may share documents, materials, or other information, including the confidential
7.4and privileged documents, materials, or information subject to subdivision 2 with other
7.5state, federal, and international regulatory agencies; with the NAIC and its affiliates
7.6and subsidiaries; and with state, federal, and international law enforcement authorities,
7.7provided that the recipient agrees to maintain the confidentiality and privileged status
7.8of the document, material, or other information and has the legal authority to maintain
7.9confidentiality;
7.10(2) may receive documents, materials, or information, including otherwise
7.11confidential and privileged documents, materials, or information, from NAIC and its
7.12affiliates and subsidiaries, and from regulatory and law enforcement officials of other
7.13foreign or domestic jurisdictions, and shall maintain as confidential or privileged any
7.14document, material, or information received with notice or the understanding that it is
7.15confidential or privileged under the laws of the jurisdiction that is the source of the
7.16document, material, or information; and
7.17(3) may enter into agreements governing sharing and use of information consistent
7.18with subdivisions 2 to 4.
7.19 Subd. 5. Nonwaiver. No waiver of applicable privilege or claim of confidentiality
7.20in the documents, materials, or information shall occur as a result of disclosure to the
7.21commissioner under this section or as a result of sharing as authorized in subdivision 4.
7.22EFFECTIVE DATE.This section is effective December 31, 2013.
7.23 Sec. 8. Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:
7.24 Subdivision 1. Definition. "Company action level event" means any of the
7.25following events:
7.26(1) the filing of a risk-based capital report by an insurer which indicates that:
7.27(i) the insurer's total adjusted capital is greater than or equal to its regulatory action
7.28level risk-based capital but less than its company action level risk-based capital;or
7.29(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater
7.30than or equal to its company action level risk-based capital but less than the product of its
7.31authorized control level risk-based capital and2.5 3.0 and has a negative trend; or
7.32(iii) if a property and casualty insurer, the insurer has total adjusted capital which
7.33is greater than or equal to its company action level risk-based capital but less than the
7.34product of its authorized control level risk-based capital and 3.0 and triggers the trend
8.1test determined in accordance with the trend test calculation included in the property
8.2and casualty risk-based capital instructions;
8.3(2) the notification by the commissioner to the insurer of an adjusted risk-based
8.4capital report that indicates an event in clause (1), provided the insurer does not challenge
8.5the adjusted risk-based report under section60A.66 ; or
8.6(3) if, pursuant to section60A.66 , an insurer challenges an adjusted risk-based
8.7capital report that indicates the event in clause (1), the notification by the commissioner to
8.8the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
8.9EFFECTIVE DATE.This section is effective December 31, 2013.
8.10 Sec. 9. Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision
8.11to read:
8.12 Subd. 2a. Criminal history record check; fingerprints. (a) An applicant for a
8.13license must:
8.14(1) consent to a criminal history record check;
8.15(2) submit a fingerprint card in a form acceptable to the commissioner; and
8.16(3) pay the fee required to perform criminal history record checks with the Minnesota
8.17Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
8.18(b) The commissioner may contract for the collection and transmission of
8.19fingerprints required under this chapter and may order the fee for collecting and
8.20transmitting fingerprints to be payable directly to the contractor by the applicant. The
8.21commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
8.22(c) The commissioner shall submit the applicant's fingerprints, consent, and
8.23the required fee to the superintendent of the Bureau of Criminal Apprehension. The
8.24superintendent shall perform a check of the state criminal history repository and is
8.25authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation
8.26to obtain the national criminal history record. The superintendent shall return the results
8.27of the state and national criminal history records checks to the commissioner.
8.28(d) This subdivision applies to an applicant for an initial license or a renewal license.
8.29EFFECTIVE DATE.This section is effective January 1, 2015, and applies to
8.30persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that
8.31date who were not previously fingerprinted in compliance with the terms of this subdivision.
8.32 Sec. 10. Minnesota Statutes 2012, section 82B.094, is amended to read:
8.3382B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.
9.1(a) A certified residential real property appraiser or a certified general real property
9.2appraiser, in good standing, may engage a trainee real property appraiser to assist in the
9.3performance of real estate appraisals, provided that the certified residential real property
9.4appraiser or a certified general real property appraiser:
9.5(1) has been licensed in good standing as either a certified residential real property
9.6appraiser or a certified general real property appraiser for a total of at least three years;
9.7(2) has completed a course that is specifically oriented to the requirements and
9.8responsibilities of supervisory appraisers and trainee appraisers;
9.9(3) has not been the subject of any license or certificate suspension or revocation or
9.10has not been prohibited from supervising activities in this state or any other state within
9.11the previous two years;
9.12(2) (4) has no more than three trainee real property appraisers working under
9.13supervision at any one time;
9.14(3) (5) actively and personally supervises the trainee real property appraiser, which
9.15includes ensuring that research of general and specific data has been adequately conducted
9.16and properly reported, application of appraisal principles and methodologies has been
9.17properly applied, that the analysis is sound and adequately reported, and that any analyses,
9.18opinions, or conclusions are adequately developed and reported so that the appraisal
9.19report is not misleading;
9.20(4) (6) discusses with the trainee real property appraiser any necessary and
9.21appropriate changes that are made to a report, involving any trainee appraiser, before it is
9.22transmitted to the client. Changes not discussed with the trainee real property appraiser
9.23that are made by the supervising appraiser must be provided in writing to the trainee real
9.24property appraiser upon completion of the appraisal report;
9.25(5) (7) accompanies the trainee real property appraiser on the inspections of the
9.26subject properties and drive-by inspections of the comparable sales on all appraisal
9.27assignments for which the trainee will perform work until the trainee appraiser is
9.28determined to be competent, in accordance with the competency rule of USPAP for the
9.29property type;
9.30(6) (8) accepts full responsibility for the appraisal report by signing and certifying
9.31that the report complies with USPAP; and
9.32(7) (9) reviews and signs the trainee real property appraiser's appraisal report or
9.33reports or if the trainee appraiser is not signing the report, states in the appraisal the name
9.34of the trainee and scope of the trainee's significant contribution to the report.
9.35(b) The supervising appraiser must review and sign the applicable experience log
9.36required to be kept by the trainee real property appraiser.
10.1(c) The supervising appraiser must notify the commissioner within ten days when
10.2the supervision of a trainee real property appraiser has terminated or when the trainee
10.3appraiser is no longer under the supervision of the supervising appraiser.
10.4(d) The supervising appraiser must maintain a separate work file for each appraisal
10.5assignment.
10.6(e) The supervising appraiser must verify that any trainee real property appraiser that
10.7is subject to supervision is properly licensed and in good standing with the commissioner.
10.8 Sec. 11. Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:
10.9 Subd. 2.Components on or after January 1, 2009 Conformance to Appraiser
10.10Qualifications Board criteria.(a) On or after January 1, 2009, an applicant for a class
10.11of license must document that the applicant has met the education, experience, and
10.12examination components in effect after January 1, 2008.
10.13(b) Qualifications for all levels of licensing must conform to the Real Property
10.14Qualification Criteria established by the Appraisal Qualifications Board for implementation
10.15effective January 1,2008 2015.
10.16 Sec. 12. Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:
10.17 Subdivision 1. Generally. (a) An applicant for a license must pass an examination
10.18conducted by the commissioner. The examinations must be of sufficient scope to establish
10.19the competency of the applicant to act as a real estate appraiser and must conform
10.20with the current National Uniform Exam Content Outlines published by the Appraiser
10.21Qualifications Board.
10.22(b) A passing grade for a real estate appraiser licensing examination must be the cut
10.23score defined by the Appraiser Qualifications Board criteria.
10.24(c) To qualify for a license as a trainee real property appraiser, an applicant must
10.25pass a current trainee real property appraiser examination. The examination must test the
10.26applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
10.27in this chapter.
10.28(d) To qualify for a license as a licensed real property appraiser, an applicant must
10.29pass a current uniform licensed real property appraiser examination approved by the
10.30Appraiser Qualifications Board. The examination must test the applicant's knowledge of
10.31appraisal terms, principles, theories, and ethics as provided in this chapter.
10.32(e) To qualify for a license as a certified residential real property appraiser, an
10.33applicant must pass a current uniform certified residential real property appraiser
10.34examination approved by the Appraiser Qualifications Board. The examination must test
11.1the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
11.2in this chapter.
11.3(f) To qualify for a license as a certified general real property appraiser, an applicant
11.4must pass a current uniform certified general real property appraiser examination approved
11.5by the Appraiser Qualifications Board. The examination must test the applicant's
11.6knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.
11.7(g) An applicant must complete the applicable education prerequisites in section
11.882B.13 and the experience requirements in section 82B.14 before the applicant takes the
11.9examination required under this section.
11.10EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
11.11applicant for a license on or after that date.
11.12 Sec. 13. Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:
11.13 Subdivision 1. Trainee real property appraiseror licensed real property
11.14appraiser. (a) As a prerequisite for licensing as a trainee real property appraiser or
11.15licensed real property appraiser, an applicant must present evidence satisfactory to the
11.16commissioner that the person has successfully completed:
11.17(1) at least90 classroom 75 hours of prelicense courses approved by the
11.18commissioner.The courses must consist Fifteen of the 75 hours must include successful
11.19completion ofgeneral real estate appraisal principles and the 15-hour national USPAP
11.20course; and
11.21(2) in addition to the required hours under clause (1), a course that is specifically
11.22oriented to the requirements and responsibilities of supervisory appraisers and trainee
11.23appraisers.
11.24(a) After January 1, 2008, a trainee real property appraiser applicant must present
11.25evidence satisfactory to the commissioner that the person has successfully completed at
11.26least 75 hours of prelicense courses approved by the commissioner.
11.27(b)After January 1, 2008, a licensed real property appraiser applicant must present
11.28evidence satisfactory to the commissioner that the person has successfully completed
11.29at least 150 hours of prelicense courses approved by the commissioner All qualifying
11.30education must be completed within the five-year period prior to the date of submission of
11.31a trainee real property appraiser license application.
11.32 Sec. 14. Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision
11.33to read:
12.1 Subd. 1a. Licensed real property appraiser. As a prerequisite for licensing as a
12.2licensed real property appraiser, an applicant must present evidence satisfactory to the
12.3commissioner that the person has successfully completed:
12.4(1) at least 150 hours of prelicense courses approved by the commissioner. The
12.5courses must consist of 75 hours of general real estate appraisal principles and the 15-hour
12.6national USPAP course; and
12.7(2) an associate degree or higher from an accredited college or university. In lieu of
12.8the required degree, the applicant may present satisfactory documentation of successful
12.9completion of 30 semester credit hours of instruction from an accredited college or
12.10university.
12.11 Sec. 15. Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:
12.12 Subd. 4. Certified residential real property appraiser. As a prerequisite for
12.13licensing as a certified residential real property appraiser, an applicant must present
12.14evidence satisfactory to the commissioner that the person has successfully completed:
12.15(1) at least120 classroom 200 hours of prelicense courses approved by the
12.16commissioner, with particular emphasis on the appraisal of one to four unit residential
12.17properties. Fifteen of the120 200 hours must include successful completion of the
12.1815-hour national USPAP course.; and
12.19After January 1, 2008, A certified residential real property appraiser applicant
12.20must present evidence satisfactory to the commissioner that the person has successfully
12.21completed:
12.22(1) 200 hours of prelicense courses approved by the commissioner; and
12.23(2)an associate a bachelor's degree or higher from an accredited college or
12.24university.In lieu of the required degree the applicant may present satisfactory
12.25documentation of completion of 21 semester credit hours from an accredited college or
12.26university covering the following subject matter courses: English composition; principles
12.27of economics (micro or macro); finance; algebra, geometry, or higher mathematics;
12.28statistics; computer science; and business or real estate law. If an applicant has completed
12.29education requirements before January 1, 2008, no college degree is required.
12.30EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
12.31applicant for a license on or after that date.
12.32 Sec. 16. Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:
13.1 Subd. 5. Certified general real property appraiser. As a prerequisite for
13.2licensing as a certified general real property appraiser, an applicant must present evidence
13.3satisfactory to the commissioner that the person has successfully completed:
13.4(1) at least180 classroom 300 hours of prelicense courses approved by the
13.5commissioner, with particular emphasis on the appraisal of nonresidential properties.
13.6Fifteen of the180 300 hours must include successful completion of the 15-hour national
13.7USPAP course.; and
13.8After January 1, 2008, A certified general real property appraiser applicant must
13.9present evidence satisfactory to the commissioner that the person has successfully
13.10completed:
13.11(1) 300 hours of prelicense courses approved by the commissioner; and
13.12(2) a bachelor's degree or higher from an accredited college or university.In lieu of
13.13the required degree the applicant may present satisfactory documentation of completion of
13.1430 semester credit hours from an accredited college or university covering the following
13.15subject matters courses: English composition; micro economics; macro economics;
13.16finance; algebra, geometry, or higher mathematics; statistics; computer science; business
13.17or real estate law; and two elective courses in accounting, geography, ag-economics,
13.18business management, or real estate. If an applicant has complete education requirements
13.19before January 1, 2008, no college degree is required.
13.20EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
13.21applicant for a license on or after that date.
13.22 Sec. 17. Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:
13.23 Subd. 8. Appraiser prelicense education. (a) Credit toward the qualifying
13.24education requirements of this section may also be obtained via the completion of a
13.25degree in real estate from an accredited degree-granting college or university approved
13.26by the Association to Advance Collegiate Schools of Business, or a regional or national
13.27accreditation agency recognized by the United States Secretary of Education, provided
13.28that the college or university has had its curriculum reviewed and approved by the
13.29Appraiser Qualifications Board.
13.30 (b) Notwithstanding section45.22 , a college or university real estate course may be
13.31approved retroactively by the commissioner for appraiser prelicense education credit if:
13.32 (1) the course was offered by a college or university physically located in Minnesota;
13.33 (2) the college or university was an approved education provider at the time the
13.34course was offered; and
14.1 (3) the commissioner's approval is made to the same extent in terms of courses and
14.2hours and with the same time limits as those specified by the Appraiser Qualifications
14.3Board.
14.4 Sec. 18. Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:
14.5 Subd. 2. Service of notice, order, or other document from commission. Service of
14.6all notices, orders, and other documents by the commission may be made by mail, personal
14.7delivery, or electronic service upon any person or firm, or upon the president, general
14.8manager, or other proper executive officer of any corporation interested. If any party has
14.9appeared by attorney, such service must be made upon the attorney. Notwithstanding
14.10section14.62 , orders and decisions may be served by mail, by personal delivery, or by
14.11electronic service. The commission may provide electronic service to any person who has
14.12provided an electronic address to the commission for service purposes. For purposes of this
14.13section, the term "person" includes a natural person or an organization, whether for profit
14.14or not for profit. Regulated utilities and state agencies must provide an electronic address
14.15for electronic service purposes and must accept electronic service as official service.
14.16 Sec. 19. Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:
14.17 Subd. 4. Service by a party, participant, or other interested person. When an
14.18applicable statute or commission rule requires service of a filing or other document by a
14.19party, participant, or other interested person upon persons on a service list maintained by the
14.20commission, service may be made by personal delivery, mail, or electronic service, except
14.21that electronic service may only be made upon persons on the official service list who have
14.22previously agreed in writing to accept electronic service at an electronic address provided
14.23to the commission for electronic service purposes. This section does not apply to the extent
14.24another provision of this chapter or chapter 216A requires a specific method of service.
14.25 Regulated utilities and state agencies must provide an electronic address to the commission
14.26for electronic service purposes and agree to accept electronic service as official service.
14.27 Sec. 20. Minnesota Statutes 2012, section 216B.18, is amended to read:
14.28216B.18 SERVICE OF NOTICE.
14.29Service of notice of all hearings, investigations, and proceedings pending before
14.30the commission and of complaints, reports, orders, and other documents must be
14.31made personally, by electronic service as provided in section216.17 , or by mail as the
14.32commission may direct. Regulated utilities and state agencies must provide an electronic
15.1address to the commission for electronic service purposes and agree to accept electronic
15.2service as official service.
15.3 Sec. 21. Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:
15.4 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
15.5section.
15.6(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located
15.7in the Department of Public Safety and managed by the Bureau of Criminal Apprehension.
15.8A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.
15.9(c) "Law enforcement agency" means a Minnesota municipal police department,
15.10the Metropolitan Transit Police, the Metropolitan Airports Police, the University of
15.11Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit,
15.12a Minnesota county sheriff's department, the Enforcement Division of the Department of
15.13Natural Resources, the Commerce Fraud Bureau, the Bureau of Criminal Apprehension,
15.14or the Minnesota State Patrol.
15.15 Sec. 22. REVISOR INSTRUCTION.
15.16Consistent with the name change in section 2, the revisor of statutes shall change
15.17the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud
15.18Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.
15.19 Sec. 23. REPEALER.
15.20 Subdivision 1. Petroleum tank release cleanup; PVC piping at residential
15.21locations. Minnesota Statutes 2012, section 115C.09, subdivision 3k, is repealed.
15.22 Subd. 2. Agricultural storage tank removal. Laws 2000, chapter 488, article
15.233, section 37, is repealed.
15.24 Subd. 3. Prior appraiser qualification requirements. Minnesota Statutes 2012,
15.25section 82B.095, subdivision 1, is repealed.
1.3subpoenas issued by the commissioner; modifying certain continuing education
1.4requirements; requiring and regulating an annual statement of actuarial opinions
1.5of reserves and supporting documentation of property and casualty companies;
1.6modifying risk-based capital requirements for certain insurers; regulating real
1.7estate appraiser licenses; modifying service requests in connection with Public
1.8Utility Commission matters; repealing certain unnecessary laws;amending
1.9Minnesota Statutes 2012, sections 13.712, by adding a subdivision; 45.0135;
1.1045.027, subdivision 2; 45.307; 45.43; 60A.62, subdivision 1; 82B.08, by adding
1.11a subdivision; 82B.094; 82B.095, subdivision 2; 82B.10, subdivision 1; 82B.13,
1.12subdivisions 1, 4, 5, 8, by adding a subdivision; 216.17, subdivisions 2, 4;
1.13216B.18; 299C.40, subdivision 1; proposing coding for new law in Minnesota
1.14Statutes, chapter 60A; repealing Minnesota Statutes 2012, sections 82B.095,
1.15subdivision 1; 115C.09, subdivision 3k; Laws 2000, chapter 488, article 3,
1.16section 37.
1.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.18 Section 1. Minnesota Statutes 2012, section 13.712, is amended by adding a
1.19subdivision to read:
1.20 Subd. 4. Actuarial data. Actuarial reports and related data of the Department of
1.21Commerce are classified under section 60A.1296.
1.22 Sec. 2. Minnesota Statutes 2012, section 45.0135, is amended to read:
1.2345.0135
1.24 BUREAU.
1.25 Subd. 2a. Authorization. The commissioner may appoint peace officers, as defined
1.26in section
1.27defined in section
1.28 Commerce Fraud
2.1sections
2.2offenses related to insurance fraud.
2.3 Subd. 2b. Duties. The
2.4 shall:
2.5(1) review notices and reports of insurance fraud submitted by authorized insurers,
2.6their employees, and agents or producers;
2.7(2) respond to notifications or complaints of suspected insurance fraud generated by
2.8other law enforcement agencies, state or federal governmental units, or any other person;
2.9(3) initiate inquiries and conduct investigations when the
2.10to believe that insurance fraud has been or is being committed; and
2.11(4) report incidents of alleged insurance fraud disclosed by its investigations to
2.12appropriate law enforcement agencies, including, but not limited to, the attorney general,
2.13county attorneys, or any other appropriate law enforcement or regulatory agency, and shall
2.14assemble evidence, prepare charges, and otherwise assist any law enforcement authority
2.15having jurisdiction.
2.16 Subd. 2c. Arrests and investigations. The initial processing of a person arrested
2.17by the
2.18its jurisdiction is the responsibility of the
2.19 unless otherwise directed by the law enforcement agency with primary jurisdiction.
2.20Subsequent investigation shall be the responsibility of the
2.21
2.22jurisdiction. At the request of the primary jurisdiction, the
2.23
2.24primary jurisdiction.
2.25 Subd. 2d. Policy for notice of investigations. The
2.26 Fraud
2.27with primary jurisdiction when it has initiated investigation of any person within the
2.28jurisdiction of that agency.
2.29 Subd. 2e. Chief law enforcement officer. The commissioner shall appoint a peace
2.30officer employed full time to be the chief law enforcement officer and to be responsible
2.31for the management of the
2.32The chief law enforcement officer shall possess the necessary police and management
2.33experience to manage a law enforcement agency. The chief law enforcement officer
2.34may appoint, discipline, and discharge all employees of the
2.35
2.36employees of the
3.1must be on duty and available any time peace officers of the
3.2
3.3 Subd. 2f. Compliance. Except as otherwise provided in this section, the
3.4
3.5administrative rules relating to the operation and management of a law enforcement agency.
3.6 Subd. 3. Evidence, documentation, and related materials. If the
3.7 seeks evidence, documentation, and related materials pertinent to an investigation, and the
3.8matter is located outside of this state, the
3.9including officials of the state where the matter is located, to secure the matter or inspect
3.10the matter on its behalf.
3.11 Subd. 4. Confidentiality and immunity. The provisions of chapter 13, including,
3.12but not limited to, section
3.13data relating to the
3.14 Subd. 5. Annual report on activities and cost-effectiveness. The
3.15
3.16in order to produce an annual report of its activities as may be prescribed by the
3.17commissioner of commerce. The commissioner shall report annually to the house of
3.18representatives and senate standing committees with jurisdiction over insurance issues
3.19as to the activities of the
3.20established by the
3.21 Subd. 6. Insurance fraud prevention account. The insurance fraud prevention
3.22account is created in the state treasury. Money received from assessments under subdivision
3.237 is deposited in the account. Money in this fund is appropriated to the commissioner of
3.24commerce for the purposes specified in this section and sections
3.25 Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of
3.26Minnesota, including surplus lines carriers, and having Minnesota earned premium the
3.27previous calendar year shall remit an assessment to the commissioner for deposit in the
3.28insurance fraud prevention account on or before June 1 of each year. The amount of the
3.29assessment shall be based on the insurer's total assets and on the insurer's total written
3.30Minnesota premium, for the preceding fiscal year, as reported pursuant to section
3.31The assessment is calculated to be an amount up to the following:
4.3For purposes of this subdivision, the following entities are not considered to be
4.4insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or
4.5township mutuals organized under chapter 67A.
4.6 Subd. 8. Investigations; health-related boards. (a) The
4.7 Commerce Fraud
4.8when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected
4.9of insurance fraud.
4.10(b) The
4.11send copies of all public data in its possession to the appropriate health-related licensing
4.12board.
4.13 Sec. 3. Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:
4.14 Subd. 2. Power to compel production of evidence. For the purpose of any
4.15investigation, hearing, proceeding, or inquiry related to the duties and responsibilities
4.16entrusted to the commissioner, the commissioner or a designated representative may
4.17administer oaths and affirmations, subpoena witnesses, compel their attendance, take
4.18evidence, and require the production of books, papers, correspondence, memoranda,
4.19agreements, or other documents or records that the commissioner considers relevant
4.20or material to the inquiry.
4.21A subpoena issued pursuant to this subdivision must state that the person to whom
4.22the subpoena is directed may not disclose the fact that the subpoena was issued or the fact
4.23that the requested records have been given to law enforcement personnel except:
4.24(1) insofar as the disclosure is necessary to find and disclose the records; or
4.25(2) pursuant to court order.
4.26 Sec. 4. Minnesota Statutes 2012, section 45.307, is amended to read:
4.2745.307 EDUCATION PROVIDER.
4.28 Subdivision 1. Duty to make records and data available to commissioner. A
4.29person applying for approval as an education provider must make available upon request
4.30such records and data required by the commissioner to administer the provisions and
4.31further the purposes of this chapter.
4.32 Subd. 2. Responsibility for actions of coordinators and instructors. An
4.33education provider is responsible for any actions taken by one or more of its coordinators
5.1or instructors in the course of performing activities associated with license education
5.2courses provided under this chapter.
5.3 Subd. 3. Responsibility for approval of coordinator. An education provider
5.4must ensure that an individual acting as a coordinator on its behalf under this chapter has
5.5received prior approval from the commissioner to act as a coordinator.
5.6 Sec. 5. Minnesota Statutes 2012, section 45.43, is amended to read:
5.745.43 REPORTING REQUIREMENTS.
5.8 Subdivision 1. Course completions. Required education must be reported in a
5.9manner prescribed by the commissioner within ten days of the course completion.
5.10 Subd. 2. Violations and penalties. (a) Each failure to report an individual licensee's
5.11course completion in the manner prescribed by subdivision 1 constitutes a separate
5.12violation.
5.13(b) The commissioner may impose a civil penalty not to exceed $500 per violation
5.14upon an education provider that violates subdivision 1.
5.15 Sec. 6. [60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING
5.16DOCUMENTATION.
5.17 Subdivision 1. Statement of actuarial opinion. Every property and casualty
5.18insurance company doing business in this state, unless otherwise exempted by the
5.19domiciliary commissioner, shall annually submit the opinion of an appointed actuary
5.20entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with
5.21the appropriate National Association of Insurance Commissioners (NAIC) Property and
5.22Casualty Annual Statement Instructions.
5.23 Subd. 2. Actuarial opinion summary. (a) Every property and casualty insurance
5.24company domiciled in this state that is required to submit a statement of actuarial opinion
5.25shall annually submit an actuarial opinion summary, written by the company's appointed
5.26actuary. This actuarial opinion summary must be filed in accordance with the appropriate
5.27NAIC Property and Casualty Annual Statement Instructions and must be considered as a
5.28document supporting the actuarial opinion required in subdivision 1.
5.29(b) A company licensed but not domiciled in this state shall provide the actuarial
5.30opinion summary upon request.
5.31 Subd. 3. Actuarial report and workpapers. (a) An actuarial report and its
5.32underlying workpapers as required by the appropriate NAIC Property and Casualty
5.33Annual Statement Instructions must be prepared to support each actuarial opinion.
6.1(b) If the insurance company fails to provide a supporting actuarial report and/or
6.2workpapers at the request of the commissioner or the commissioner determines that
6.3the supporting actuarial report or workpapers provided by the insurance company are
6.4otherwise unacceptable to the commissioner, the commissioner may engage a qualified
6.5actuary at the expense of the company to review the opinion and the basis for the opinion
6.6and prepare the supporting actuarial report or workpapers.
6.7 Subd. 4. Liability. The appointed actuary shall not be liable for damages to any
6.8person, other than the insurance company and the commissioner, for any act, error,
6.9omission, decision, or conduct with respect to the actuary's opinion, except in cases of
6.10fraud or willful misconduct on the part of the appointed actuary.
6.11EFFECTIVE DATE.This section is effective December 31, 2013.
6.12 Sec. 7. [60A.1296] CONFIDENTIALITY.
6.13 Subdivision 1. Actuarial opinion; public document. The statement of actuarial
6.14opinion must be provided with the annual statement in accordance with the appropriate
6.15National Association of Insurance Commissioners (NAIC) Property and Casualty Annual
6.16Statement Instructions and must be treated as a public document.
6.17 Subd. 2. Supporting materials; confidential and privileged. (a) Documents,
6.18materials, or other information in the possession or control of the Department of
6.19Commerce that are considered an actuarial report, workpapers, or actuarial opinion
6.20summary provided in support of the opinion, and any other material provided by the
6.21company to the commissioner in connection with the actuarial report, workpapers, or
6.22actuarial opinion summary, are confidential data on individuals or protected nonpublic
6.23data as defined in section 13.02, shall not be subject to subpoena, and shall not be subject
6.24to discovery or admissible in evidence in any private civil action.
6.25(b) This provision shall not be construed to limit the commissioner's authority to:
6.26(1) release the documents to the Actuarial Board for Counseling and Discipline
6.27(ABCD) so long as the material is required for the purpose of professional disciplinary
6.28proceedings and the ABCD establishes procedures satisfactory to the commissioner for
6.29preserving the confidentiality of the documents; or
6.30(2) use the documents, materials, or other information in furtherance of any
6.31regulatory or legal action brought as part of the commissioner's official duties.
6.32 Subd. 3. Protections. Neither the commissioner nor any person who received
6.33the documents, materials, or other information while acting under the authority of
6.34the commissioner shall be permitted or required to testify in any private civil action
6.35concerning any confidential documents, materials, or information subject to subdivision 2.
7.1 Subd. 4. Exceptions. In order to assist in the performance of the commissioner's
7.2duties, the commissioner:
7.3(1) may share documents, materials, or other information, including the confidential
7.4and privileged documents, materials, or information subject to subdivision 2 with other
7.5state, federal, and international regulatory agencies; with the NAIC and its affiliates
7.6and subsidiaries; and with state, federal, and international law enforcement authorities,
7.7provided that the recipient agrees to maintain the confidentiality and privileged status
7.8of the document, material, or other information and has the legal authority to maintain
7.9confidentiality;
7.10(2) may receive documents, materials, or information, including otherwise
7.11confidential and privileged documents, materials, or information, from NAIC and its
7.12affiliates and subsidiaries, and from regulatory and law enforcement officials of other
7.13foreign or domestic jurisdictions, and shall maintain as confidential or privileged any
7.14document, material, or information received with notice or the understanding that it is
7.15confidential or privileged under the laws of the jurisdiction that is the source of the
7.16document, material, or information; and
7.17(3) may enter into agreements governing sharing and use of information consistent
7.18with subdivisions 2 to 4.
7.19 Subd. 5. Nonwaiver. No waiver of applicable privilege or claim of confidentiality
7.20in the documents, materials, or information shall occur as a result of disclosure to the
7.21commissioner under this section or as a result of sharing as authorized in subdivision 4.
7.22EFFECTIVE DATE.This section is effective December 31, 2013.
7.23 Sec. 8. Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:
7.24 Subdivision 1. Definition. "Company action level event" means any of the
7.25following events:
7.26(1) the filing of a risk-based capital report by an insurer which indicates that:
7.27(i) the insurer's total adjusted capital is greater than or equal to its regulatory action
7.28level risk-based capital but less than its company action level risk-based capital;
7.29(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater
7.30than or equal to its company action level risk-based capital but less than the product of its
7.31authorized control level risk-based capital and
7.32(iii) if a property and casualty insurer, the insurer has total adjusted capital which
7.33is greater than or equal to its company action level risk-based capital but less than the
7.34product of its authorized control level risk-based capital and 3.0 and triggers the trend
8.1test determined in accordance with the trend test calculation included in the property
8.2and casualty risk-based capital instructions;
8.3(2) the notification by the commissioner to the insurer of an adjusted risk-based
8.4capital report that indicates an event in clause (1), provided the insurer does not challenge
8.5the adjusted risk-based report under section
8.6(3) if, pursuant to section
8.7capital report that indicates the event in clause (1), the notification by the commissioner to
8.8the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
8.9EFFECTIVE DATE.This section is effective December 31, 2013.
8.10 Sec. 9. Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision
8.11to read:
8.12 Subd. 2a. Criminal history record check; fingerprints. (a) An applicant for a
8.13license must:
8.14(1) consent to a criminal history record check;
8.15(2) submit a fingerprint card in a form acceptable to the commissioner; and
8.16(3) pay the fee required to perform criminal history record checks with the Minnesota
8.17Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
8.18(b) The commissioner may contract for the collection and transmission of
8.19fingerprints required under this chapter and may order the fee for collecting and
8.20transmitting fingerprints to be payable directly to the contractor by the applicant. The
8.21commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
8.22(c) The commissioner shall submit the applicant's fingerprints, consent, and
8.23the required fee to the superintendent of the Bureau of Criminal Apprehension. The
8.24superintendent shall perform a check of the state criminal history repository and is
8.25authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation
8.26to obtain the national criminal history record. The superintendent shall return the results
8.27of the state and national criminal history records checks to the commissioner.
8.28(d) This subdivision applies to an applicant for an initial license or a renewal license.
8.29EFFECTIVE DATE.This section is effective January 1, 2015, and applies to
8.30persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that
8.31date who were not previously fingerprinted in compliance with the terms of this subdivision.
8.32 Sec. 10. Minnesota Statutes 2012, section 82B.094, is amended to read:
8.3382B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.
9.1(a) A certified residential real property appraiser or a certified general real property
9.2appraiser, in good standing, may engage a trainee real property appraiser to assist in the
9.3performance of real estate appraisals, provided that the certified residential real property
9.4appraiser or a certified general real property appraiser:
9.5(1) has been licensed in good standing as either a certified residential real property
9.6appraiser or a certified general real property appraiser for a total of at least three years;
9.7(2) has completed a course that is specifically oriented to the requirements and
9.8responsibilities of supervisory appraisers and trainee appraisers;
9.9(3) has not been the subject of any license or certificate suspension or revocation or
9.10has not been prohibited from supervising activities in this state or any other state within
9.11the previous two years;
9.12
9.13supervision at any one time;
9.14
9.15includes ensuring that research of general and specific data has been adequately conducted
9.16and properly reported, application of appraisal principles and methodologies has been
9.17properly applied, that the analysis is sound and adequately reported, and that any analyses,
9.18opinions, or conclusions are adequately developed and reported so that the appraisal
9.19report is not misleading;
9.20
9.21appropriate changes that are made to a report, involving any trainee appraiser, before it is
9.22transmitted to the client. Changes not discussed with the trainee real property appraiser
9.23that are made by the supervising appraiser must be provided in writing to the trainee real
9.24property appraiser upon completion of the appraisal report;
9.25
9.26subject properties and drive-by inspections of the comparable sales on all appraisal
9.27assignments for which the trainee will perform work until the trainee appraiser is
9.28determined to be competent, in accordance with the competency rule of USPAP for the
9.29property type;
9.30
9.31that the report complies with USPAP; and
9.32
9.33reports or if the trainee appraiser is not signing the report, states in the appraisal the name
9.34of the trainee and scope of the trainee's significant contribution to the report.
9.35(b) The supervising appraiser must review and sign the applicable experience log
9.36required to be kept by the trainee real property appraiser.
10.1(c) The supervising appraiser must notify the commissioner within ten days when
10.2the supervision of a trainee real property appraiser has terminated or when the trainee
10.3appraiser is no longer under the supervision of the supervising appraiser.
10.4(d) The supervising appraiser must maintain a separate work file for each appraisal
10.5assignment.
10.6(e) The supervising appraiser must verify that any trainee real property appraiser that
10.7is subject to supervision is properly licensed and in good standing with the commissioner.
10.8 Sec. 11. Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:
10.9 Subd. 2.
10.10Qualifications Board criteria.
10.11
10.12
10.13
10.14Qualification Criteria established by the Appraisal Qualifications Board for implementation
10.15effective January 1,
10.16 Sec. 12. Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:
10.17 Subdivision 1. Generally. (a) An applicant for a license must pass an examination
10.18conducted by the commissioner. The examinations must be of sufficient scope to establish
10.19the competency of the applicant to act as a real estate appraiser and must conform
10.20with the current National Uniform Exam Content Outlines published by the Appraiser
10.21Qualifications Board.
10.22(b) A passing grade for a real estate appraiser licensing examination must be the cut
10.23score defined by the Appraiser Qualifications Board criteria.
10.24(c) To qualify for a license as a trainee real property appraiser, an applicant must
10.25pass a current trainee real property appraiser examination. The examination must test the
10.26applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
10.27in this chapter.
10.28(d) To qualify for a license as a licensed real property appraiser, an applicant must
10.29pass a current uniform licensed real property appraiser examination approved by the
10.30Appraiser Qualifications Board. The examination must test the applicant's knowledge of
10.31appraisal terms, principles, theories, and ethics as provided in this chapter.
10.32(e) To qualify for a license as a certified residential real property appraiser, an
10.33applicant must pass a current uniform certified residential real property appraiser
10.34examination approved by the Appraiser Qualifications Board. The examination must test
11.1the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
11.2in this chapter.
11.3(f) To qualify for a license as a certified general real property appraiser, an applicant
11.4must pass a current uniform certified general real property appraiser examination approved
11.5by the Appraiser Qualifications Board. The examination must test the applicant's
11.6knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.
11.7(g) An applicant must complete the applicable education prerequisites in section
11.882B.13 and the experience requirements in section 82B.14 before the applicant takes the
11.9examination required under this section.
11.10EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
11.11applicant for a license on or after that date.
11.12 Sec. 13. Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:
11.13 Subdivision 1. Trainee real property appraiser
11.14
11.15
11.16commissioner that the person has successfully completed:
11.17(1) at least
11.18commissioner.
11.19completion of
11.20course; and
11.21(2) in addition to the required hours under clause (1), a course that is specifically
11.22oriented to the requirements and responsibilities of supervisory appraisers and trainee
11.23appraisers.
11.24
11.25
11.26
11.27(b)
11.28
11.29
11.30education must be completed within the five-year period prior to the date of submission of
11.31a trainee real property appraiser license application.
11.32 Sec. 14. Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision
11.33to read:
12.1 Subd. 1a. Licensed real property appraiser. As a prerequisite for licensing as a
12.2licensed real property appraiser, an applicant must present evidence satisfactory to the
12.3commissioner that the person has successfully completed:
12.4(1) at least 150 hours of prelicense courses approved by the commissioner. The
12.5courses must consist of 75 hours of general real estate appraisal principles and the 15-hour
12.6national USPAP course; and
12.7(2) an associate degree or higher from an accredited college or university. In lieu of
12.8the required degree, the applicant may present satisfactory documentation of successful
12.9completion of 30 semester credit hours of instruction from an accredited college or
12.10university.
12.11 Sec. 15. Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:
12.12 Subd. 4. Certified residential real property appraiser. As a prerequisite for
12.13licensing as a certified residential real property appraiser, an applicant must present
12.14evidence satisfactory to the commissioner that the person has successfully completed:
12.15(1) at least
12.16commissioner, with particular emphasis on the appraisal of one to four unit residential
12.17properties. Fifteen of the
12.1815-hour national USPAP course
12.19
12.20
12.21
12.22
12.23(2)
12.24university.
12.25
12.26
12.27
12.28
12.29
12.30EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
12.31applicant for a license on or after that date.
12.32 Sec. 16. Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:
13.1 Subd. 5. Certified general real property appraiser. As a prerequisite for
13.2licensing as a certified general real property appraiser, an applicant must present evidence
13.3satisfactory to the commissioner that the person has successfully completed:
13.4(1) at least
13.5commissioner, with particular emphasis on the appraisal of nonresidential properties.
13.6Fifteen of the
13.7USPAP course
13.8
13.9
13.10
13.11
13.12(2) a bachelor's degree or higher from an accredited college or university.
13.13
13.14
13.15
13.16
13.17
13.18
13.19
13.20EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
13.21applicant for a license on or after that date.
13.22 Sec. 17. Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:
13.23 Subd. 8. Appraiser prelicense education. (a) Credit toward the qualifying
13.24education requirements of this section may also be obtained via the completion of a
13.25degree in real estate from an accredited degree-granting college or university approved
13.26by the Association to Advance Collegiate Schools of Business, or a regional or national
13.27accreditation agency recognized by the United States Secretary of Education, provided
13.28that the college or university has had its curriculum reviewed and approved by the
13.29Appraiser Qualifications Board.
13.30 (b) Notwithstanding section
13.31approved retroactively by the commissioner for appraiser prelicense education credit if:
13.32 (1) the course was offered by a college or university physically located in Minnesota;
13.33 (2) the college or university was an approved education provider at the time the
13.34course was offered; and
14.1 (3) the commissioner's approval is made to the same extent in terms of courses and
14.2hours and with the same time limits as those specified by the Appraiser Qualifications
14.3Board.
14.4 Sec. 18. Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:
14.5 Subd. 2. Service of notice, order, or other document from commission. Service of
14.6all notices, orders, and other documents by the commission may be made by mail, personal
14.7delivery, or electronic service upon any person or firm, or upon the president, general
14.8manager, or other proper executive officer of any corporation interested. If any party has
14.9appeared by attorney, such service must be made upon the attorney. Notwithstanding
14.10section
14.11electronic service. The commission may provide electronic service to any person who has
14.12provided an electronic address to the commission for service purposes. For purposes of this
14.13section, the term "person" includes a natural person or an organization, whether for profit
14.14or not for profit. Regulated utilities and state agencies must provide an electronic address
14.15for electronic service purposes and must accept electronic service as official service.
14.16 Sec. 19. Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:
14.17 Subd. 4. Service by a party, participant, or other interested person. When an
14.18applicable statute or commission rule requires service of a filing or other document by a
14.19party, participant, or other interested person upon persons on a service list maintained by the
14.20commission, service may be made by personal delivery, mail, or electronic service, except
14.21that electronic service may only be made upon persons on the official service list who have
14.22previously agreed in writing to accept electronic service at an electronic address provided
14.23to the commission for electronic service purposes. This section does not apply to the extent
14.24another provision of this chapter or chapter 216A requires a specific method of service.
14.25 Regulated utilities and state agencies must provide an electronic address to the commission
14.26for electronic service purposes and agree to accept electronic service as official service.
14.27 Sec. 20. Minnesota Statutes 2012, section 216B.18, is amended to read:
14.28216B.18 SERVICE OF NOTICE.
14.29Service of notice of all hearings, investigations, and proceedings pending before
14.30the commission and of complaints, reports, orders, and other documents must be
14.31made personally, by electronic service as provided in section
14.32commission may direct. Regulated utilities and state agencies must provide an electronic
15.1address to the commission for electronic service purposes and agree to accept electronic
15.2service as official service.
15.3 Sec. 21. Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:
15.4 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
15.5section.
15.6(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located
15.7in the Department of Public Safety and managed by the Bureau of Criminal Apprehension.
15.8A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.
15.9(c) "Law enforcement agency" means a Minnesota municipal police department,
15.10the Metropolitan Transit Police, the Metropolitan Airports Police, the University of
15.11Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit,
15.12a Minnesota county sheriff's department, the Enforcement Division of the Department of
15.13Natural Resources, the Commerce Fraud Bureau, the Bureau of Criminal Apprehension,
15.14or the Minnesota State Patrol.
15.15 Sec. 22. REVISOR INSTRUCTION.
15.16Consistent with the name change in section 2, the revisor of statutes shall change
15.17the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud
15.18Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.
15.19 Sec. 23. REPEALER.
15.20 Subdivision 1. Petroleum tank release cleanup; PVC piping at residential
15.21locations. Minnesota Statutes 2012, section 115C.09, subdivision 3k, is repealed.
15.22 Subd. 2. Agricultural storage tank removal. Laws 2000, chapter 488, article
15.233, section 37, is repealed.
15.24 Subd. 3. Prior appraiser qualification requirements. Minnesota Statutes 2012,
15.25section 82B.095, subdivision 1, is repealed.
