1.1 	A bill for an act
1.2 	relating to commerce; modifying various requirements
1.3 	for licensees of the Department of Commerce; amending
1.4 	Minnesota Statutes 2004, sections 60K.37, subdivision
1.5 	1; 60K.38, subdivision 1; 60K.39, subdivision 3;
1.6 	60K.56, subdivision 6; 82.29, subdivision 8; 82.31,
1.7 	subdivision 5; 82.32; 82B.02, by adding a subdivision;
1.8 	82B.10, subdivision 4; 82B.11, subdivision 6; 82B.13,
1.9 	subdivisions 1, 3, 4, 5; 82B.14; 82B.19, subdivision
1.10 	1; proposing coding for new law in Minnesota Statutes,
1.11 	chapter 45; repealing Minnesota Statutes 2004, section
1.12 	82B.221; Minnesota Rules, part 2808.2200.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. [45.20] CRIMINAL BACKGROUND CHECK.
1.15 	All applicants for a license must attach a printed copy of
1.16 	their own public criminal history which they must obtain at
1.17 	their own cost from the Bureau of Criminal Apprehension.  The
1.18 	public criminal history cannot be more than 30 days old at the
1.19 	time of applying for a license.

1.20 	Sec. 2. [45.21] APPLICATION FEES.
1.21 		Subdivision 1.Fee refunds. Refunds must not be given
1.22 	other than for overpayment of fees.  Overpayment means any
1.23 	payment of money in excess of a statutory fee or for a license
1.24 	for which a person does not qualify.  An overpayment of a fee
1.25 	must be returned upon proper application by the applicant.  If
1.26 	an applicant requests a refund of an overpayment, the request
1.27 	must be received by the commissioner within six months of the
1.28 	date of deposit or the overpayment will be forfeited.  An
1.29 	overpayment of a fee may be returned to the person entitled to
2.1 	it upon determination by the commissioner that an overpayment
2.2 	was made.
2.3 		Subd. 2.Withdrawal of application. An application that
2.4 	is incomplete is considered withdrawn if the applicant does not
2.5 	submit a complete application within six months of the date the
2.6 	application was received.  The application fee is nonrefundable
2.7 	if an application is withdrawn according to this subdivision.

2.8 	Sec. 3. [45.22] LICENSE EDUCATION.
2.9 	(a) License education courses must be approved in advance
2.10 	by the commissioner.  Each sponsor who offers a license
2.11 	education course must have at least one coordinator, approved by
2.12 	the commissioner, who is responsible for supervising the
2.13 	educational program and assuring compliance with all laws and
2.14 	rules.  "Sponsor" means any person or entity offering approved
2.15 	education.
2.16 	(b) For coordinators with an initial approval date before
2.17 	the effective date of this provision, approval will expire on
2.18 	December 31, 2005.  For courses with an initial approval date on
2.19 	or before December 31, 2000, approval will expire on April 30,
2.20 	2006.  For courses with an initial approval date after January
2.21 	1, 2001, but before the effective date of this provision,
2.22 	approval will expire on April 30, 2007.

2.23 	Sec. 4. [45.23] LICENSE RENEWAL.
2.24 	An individual license remains in effect unless revoked or
2.25 	suspended as long as all renewal requirements, including renewal
2.26 	fee payment and continuing education, are met by the due date.

2.27 	Sec. 5. Minnesota Statutes 2004, section 60K.37,
2.28 	subdivision 1, is amended to read:
2.29 		Subdivision 1.Resident insurance producer.  A person is
2.30 	a resident of this state if that person resides in this state or
2.31 	the principal place of business of that person is maintained in
2.32 	this state.  Application for a license claiming residency in
2.33 	this state constitutes an election of residency in this state.
2.34 	A license issued upon an application claiming residency in this
2.35 	state is void if the licensee, while holding a resident license
2.36 	in this state, obtains a resident license in, or claims to be a
3.1 	resident of, any other state or jurisdiction or if the licensee
3.2 	ceases to be a resident of this state. ~~However, if the~~
3.3 	~~applicant is a resident of a community or trade area, the border~~
3.4 	~~of which is contiguous with the state line of this state, the~~
3.5 	~~applicant may qualify for a resident license in this state and~~
3.6 	~~at the same time hold a resident license from the contiguous~~
3.7 	~~state.~~

3.8 	Sec. 6. Minnesota Statutes 2004, section 60K.38,
3.9 	subdivision 1, is amended to read:
3.10 		Subdivision 1.Issuance.  (a) Unless denied a license
3.11 	under section 60K.43, a person who has met the requirements of
3.12 	sections 60K.36 and 60K.37 must be issued an insurance producer
3.13 	license.  An insurance producer may receive qualification for a
3.14 	license in one or more of the lines of authority in paragraphs
3.15 	(b) and (c).
3.16 	(b) An individual insurance producer may receive
3.17 	qualification for a license in one or more of the following
3.18 	major lines:
3.19 	(1) life insurance:  coverage on human lives including
3.20 	benefits of endowment and annuities, and may include benefits in
3.21 	the event of death or dismemberment by accident and benefits for
3.22 	disability income;
3.23 	(2) accident and health or sickness insurance:  coverage
3.24 	for sickness, bodily injury, or accidental death, and may
3.25 	include benefits for disability income;
3.26 	(3) property insurance:  coverage for the direct or
3.27 	consequential loss or damage to property of every kind;
3.28 	(4) casualty insurance:  coverage against legal liability,
3.29 	including that for death, injury, or disability, or damage to
3.30 	real or personal property;
3.31 	(5) variable life and variable annuity products insurance:
3.32 	coverage provided under variable life insurance contracts and
3.33 	variable annuities; and
3.34 	(6) personal lines:  property and casualty insurance
3.35 	coverage sold to individuals and families for primarily
3.36 	noncommercial purposes.
4.1 	(c) An individual insurance producer may receive
4.2 	qualification for a license in one or more of the following
4.3 	limited lines:
4.4 	(1) limited line credit insurance;
4.5 	(2) farm property and liability insurance;
4.6 	(3) title insurance;
4.7 	(4) travel baggage insurance; and 
4.8 	(5) bail bonds~~; and~~ 
4.9 	~~(6) any other line of insurance permitted under state laws~~
4.10 	~~or rules~~.

4.11 	Sec. 7. Minnesota Statutes 2004, section 60K.39,
4.12 	subdivision 3, is amended to read:
4.13 		Subd. 3.Change of address.  A nonresident producer who
4.14 	moves from one state to another state ~~or a resident producer who~~
4.15 	~~moves from this state to another state~~ shall file a change of
4.16 	address and provide certification from the new resident state
4.17 	within ten days of the change of legal residence.  No fee or
4.18 	license application is required.

4.19 	Sec. 8. Minnesota Statutes 2004, section 60K.56,
4.20 	subdivision 6, is amended to read:
4.21 		Subd. 6.Minimum education requirement.  Each person
4.22 	subject to this section shall complete a minimum of 30 credit
4.23 	hours of courses accredited by the commissioner during each
4.24 	24-month licensing period.  Any person whose initial licensing
4.25 	period extends more than six months shall complete 15 hours of
4.26 	courses accredited by the commissioner during the initial
4.27 	license period. The credit hours required under this
4.28 	subdivision may be credited to a person for distance education
4.29 	courses, including interactive technology and the Internet.Any
4.30 	person teaching or lecturing at an accredited course qualifies
4.31 	for three times the number of credit hours that would be granted
4.32 	to a person completing the accredited course. ~~No more than~~
4.33 	~~one-half of the credit hours per licensing period required under~~
4.34 	~~this section may be credited to a person for attending any~~
4.35 	~~combination of courses either sponsored by, offered by, or~~
4.36 	~~affiliated with an insurance company or its agents; or offered~~
5.1 	~~using new delivery technology, including computer, interactive~~
5.2 	~~technology, and the Internet.~~Courses sponsored by, offered by,
5.3 	or affiliated with an insurance company or agent may restrict
5.4 	its students to agents of the company or agency.

5.5 	Sec. 9. Minnesota Statutes 2004, section 82.29,
5.6 	subdivision 8, is amended to read:
5.7 		Subd. 8.Instruction; new licenses.  (a) Every applicant
5.8 	for a salesperson's license shall be required to successfully
5.9 	complete a course of study in the real estate field consisting
5.10 	of 30 hours of instruction approved by the commissioner before
5.11 	taking the examination specified in subdivision 1.  Every
5.12 	applicant for a salesperson's license shall be required to
5.13 	successfully complete an additional course of study in the real
5.14 	estate field consisting of 60 hours of instruction approved by
5.15 	the commissioner, of which three hours shall consist of training
5.16 	in state and federal fair housing laws, regulations, and rules,
5.17 	and of which two hours must consist of training in laws and
5.18 	regulations on agency representation and disclosure, before
5.19 	filing an application for the license.  This subdivision does
5.20 	not apply to salespeople licensed in Minnesota before July 1,
5.21 	1969.
5.22 	(b) An applicant for a broker's license must successfully
5.23 	complete a course of study in the real estate field consisting
5.24 	of 30 hours of instruction approved by the commissioner, of
5.25 	which three hours shall consist of training in state and federal
5.26 	fair housing laws, regulations, and rules. ~~The course must have~~
5.27 	~~been completed within 12 months prior to the date of application~~
5.28 	~~for the broker's license.~~
5.29 	(c) An applicant for a real estate closing agent's license
5.30 	must successfully complete a course of study relating to closing
5.31 	services consisting of eight hours of instruction approved by
5.32 	the commissioner.

5.33 	Sec. 10. Minnesota Statutes 2004, section 82.31,
5.34 	subdivision 5, is amended to read:
5.35 		Subd. 5.Period for application.  An applicant who
5.36 	obtains an acceptable score on a salesperson's examination must
6.1 	file an application and obtain the license within one year of
6.2 	the date of successful completion of the examination or a second
6.3 	examination must be taken to qualify for the license. ~~If a new~~
6.4 	~~examination is required, prelicense education must be completed~~
6.5 	~~in accordance with section 82.29, subdivision 8.~~

6.6 	Sec. 11. Minnesota Statutes 2004, section 82.32, is
6.7 	amended to read:
6.8 	82.32 LICENSING:  CONTINUING EDUCATION AND INSTRUCTION.
6.9 	(a) All real estate salespersons and all real estate
6.10 	brokers shall be required to successfully complete 30 hours of
6.11 	real estate continuing education, either as a student or a
6.12 	lecturer, in courses of study approved by the commissioner,
6.13 	during the initial license period and during each succeeding
6.14 	24-month license period. ~~At least 15 of the 30 credit hours~~
6.15 	~~must be completed during the first 12 months of the 24-month~~
6.16 	~~licensing period.~~Licensees may not claim credit for continuing
6.17 	education not actually completed as of the date their report of
6.18 	continuing education compliance is filed.
6.19 	(b) The commissioner may adopt rules defining the standards
6.20 	for course and instructor approval, and may adopt rules for the
6.21 	proper administration of prelicense instruction as required
6.22 	under section 82.29, subdivision 8, and continuing education as
6.23 	required under this section and sections 82.29; 82.31,
6.24 	subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and
6.25 	82.44.  The commissioner may not approve a course which can be
6.26 	completed by the student at home or outside the classroom
6.27 	without the supervision of an instructor except accredited
6.28 	courses using new delivery technology, including interactive
6.29 	technology, and the Internet.  The commissioner may approve
6.30 	courses of study in the real estate field offered in educational
6.31 	institutions of higher learning in this state or courses of
6.32 	study in the real estate field developed by and offered under
6.33 	the auspices of the National Association of Realtors, its
6.34 	affiliates, or private real estate schools.  Courses in
6.35 	motivation, salesmanship, psychology, or time management shall
6.36 	not be approved by the commissioner for continuing education
7.1 	credit.  The commissioner may approve courses in any other
7.2 	subjects, including, but not limited to, communication,
7.3 	marketing, negotiation, and technology for continuing education
7.4 	credit.
7.5 	(c) Any program approved by Minnesota continuing legal
7.6 	education shall be approved by the commissioner of commerce for
7.7 	continuing education for real estate brokers and salespeople if
7.8 	the program or any part thereof relates to real estate.
7.9 	(d) As part of the continuing education requirements of
7.10 	this section and sections 82.29; 82.31, subdivisions 5 and 6;
7.11 	82.33, subdivisions 1 and 4 to 6; and 82.44, the commissioner
7.12 	shall require that all real estate brokers and salespersons
7.13 	receive:
7.14 	(1) at least one hour of training during each license
7.15 	period in courses in laws or regulations on agency
7.16 	representation and disclosure; and
7.17 	(2) at least one hour of training during each license
7.18 	period in courses in state and federal fair housing laws,
7.19 	regulations, and rules, other antidiscrimination laws, or
7.20 	courses designed to help licensees to meet the housing needs of
7.21 	immigrant and other underserved populations.
7.22 	Clauses (1) and (2) do not apply to real estate
7.23 	salespersons and real estate brokers engaged solely in the
7.24 	commercial real estate business who file with the commissioner a
7.25 	verification of this status along with the continuing education
7.26 	report required under paragraph (a).
7.27 	(e) The commissioner is authorized to establish a procedure
7.28 	for renewal of course accreditation.
7.29 	(f) Approved continuing education courses may be sponsored
7.30 	or offered by a broker of a real estate company and may be held
7.31 	on the premises of a company licensed under this chapter.  All
7.32 	continuing education course offerings must be open to any
7.33 	interested individuals.  Access may be restricted by the sponsor
7.34 	based on class size only.  Courses must not be approved if
7.35 	attendance is restricted to any particular group of people.  A
7.36 	broker must comply with all continuing education rules
8.1 	prescribed by the commissioner.  The commissioner shall not
8.2 	approve any prelicense instruction courses offered by, sponsored
8.3 	by, or affiliated with any person or company licensed to engage
8.4 	in the real estate business.
8.5 	(g) Credit may not be earned if the licensee has previously
8.6 	obtained credit for the same course as either a student or
8.7 	instructor during the same licensing period.
8.8 	(h) The real estate education course completion certificate
8.9 	must be in the form set forth by the commissioner.
8.10 	Students are responsible for maintaining copies of course
8.11 	completion certificates.

8.12 	Sec. 12. Minnesota Statutes 2004, section 82B.02, is
8.13 	amended by adding a subdivision to read:
8.14 		Subd. 16.Uspap. "USPAP" means the Uniform Standards of
8.15 	Professional Appraisal Practice established by the Appraisal
8.16 	Foundation.

8.17 	Sec. 13. Minnesota Statutes 2004, section 82B.10,
8.18 	subdivision 4, is amended to read:
8.19 		Subd. 4.Period for application.  An applicant who
8.20 	obtains an acceptable score on an examination must file an
8.21 	application and obtain the license within ~~one year~~ two years of
8.22 	the date of successful completion of the examination or a second
8.23 	examination must be taken to qualify for the license.

8.24 	Sec. 14. Minnesota Statutes 2004, section 82B.11,
8.25 	subdivision 6, is amended to read:
8.26 		Subd. 6.Temporary practice. (a) The commissioner shall
8.27 	issue a license for temporary practice as a real estate
8.28 	appraiser under subdivision 3, 4, or 5 to a person certified or
8.29 	licensed by another state if:
8.30 	(1) the property to be appraised is part of a federally
8.31 	related transaction and the person is licensed to appraise
8.32 	property limited to the same transaction value or complexity
8.33 	provided in subdivision 3, 4, or 5;
8.34 	(2) the appraiser's business is of a temporary nature; and
8.35 	(3) the appraiser registers with the commissioner to obtain
8.36 	a temporary license before conducting appraisals within the
9.1 	state.
9.2 	(b) The term of a temporary practice license is the lesser
9.3 	of:
9.4 	(1) the time required to complete the assignment; or 
9.5 	(2) six months, with one extension allowed.
9.6 	The appraiser may request one extension of no more than six
9.7 	months on a form provided by the commissioner.  If more than 12
9.8 	months are necessary to complete the assignment, a new temporary
9.9 	application and fee is required.

9.10 	Sec. 15. Minnesota Statutes 2004, section 82B.13,
9.11 	subdivision 1, is amended to read:
9.12 		Subdivision 1.Registered real property appraiser or
9.13 	licensed real property appraiser.  As a prerequisite for
9.14 	licensing as a registered real property appraiser or licensed
9.15 	real property appraiser, an applicant must present evidence
9.16 	satisfactory to the commissioner that the person has
9.17 	successfully completed at least 90 classroom hours of courses.
9.18 	The courses must consist of 75 hours of general real estate
9.19 	appraisal principles and ~~15 hours related to standards of~~
9.20 	~~professional appraisal practice and the provisions of this~~
9.21 	~~chapter~~ the 15-hour national USPAP course.

9.22 	Sec. 16. Minnesota Statutes 2004, section 82B.13,
9.23 	subdivision 3, is amended to read:
9.24 		Subd. 3.Commissioner's approval; rules.  The courses and
9.25 	instruction and procedures of courses must be approved by the
9.26 	commissioner.  The commissioner may adopt rules to administer
9.27 	this section.  These rules must, to the extent practicable,
9.28 	conform to the rules adopted for real estate and insurance
9.29 	education. The credit hours required under this section may be
9.30 	credited to a person for distance education courses that meet
9.31 	Appraiser Qualifications Board criteria.

9.32 	Sec. 17. Minnesota Statutes 2004, section 82B.13,
9.33 	subdivision 4, is amended to read:
9.34 		Subd. 4.Certified residential real property appraiser.
 9.35 	As a prerequisite for licensing as a certified residential real
9.36 	property appraiser, an applicant must present evidence
10.1 	satisfactory to the commissioner that the person has
10.2 	successfully completed at least 120 classroom hours of courses,
10.3 	~~including 15 hours related to the standards of professional~~
10.4 	~~appraisal practice and the provisions of this chapter,~~with
10.5 	particular emphasis on the appraisal of one to four unit
10.6 	residential properties. Fifteen of the 120 hours must include
10.7 	successful completion of the 15-hour national USPAP course.

10.8 	Sec. 18. Minnesota Statutes 2004, section 82B.13,
10.9 	subdivision 5, is amended to read:
10.10 		Subd. 5.Certified general real property appraiser.  As a
10.11 	prerequisite for licensing as a certified general real property
10.12 	appraiser, an applicant must present evidence satisfactory to
10.13 	the commissioner that the person has successfully completed at
10.14 	least 180 classroom hours of courses, ~~including 15 hours related~~
10.15 	~~to the standards of professional appraisal practice and the~~
10.16 	~~provisions of this chapter,~~with particular emphasis on the
10.17 	appraisal of nonresidential properties. Fifteen of the 180
10.18 	hours must include successful completion of the 15-hour national
10.19 	USPAP course.

10.20 	Sec. 19. Minnesota Statutes 2004, section 82B.14, is
10.21 	amended to read:
10.22 	82B.14 EXPERIENCE REQUIREMENT.
10.23 	(a) As a prerequisite for licensing as a licensed real
10.24 	property appraiser, an applicant must present evidence
10.25 	satisfactory to the commissioner that the person has obtained
10.26 	2,000 hours of experience in real property appraisal.
10.27 	As a prerequisite for licensing as a certified residential
10.28 	real property appraiser, an applicant must present evidence
10.29 	satisfactory to the commissioner that the person has obtained
10.30 	2,500 hours of experience in real property appraisal obtained in
10.31 	no fewer than 24 months.
10.32 	As a prerequisite for licensing as a certified general real
10.33 	property appraiser, an applicant must present evidence
10.34 	satisfactory to the commissioner that the person has obtained
10.35 	3,000 hours of experience in real property appraisal obtained in
10.36 	no fewer than 30 months.  At least 50 percent, or 1,500 hours,
11.1 	must be in nonresidential appraisal work.
11.2 	(b) Each applicant for license under section 82B.11,
11.3 	subdivision 3, 4, or 5, shall give under oath a detailed listing
11.4 	of the real estate appraisal reports or file memoranda for which
11.5 	experience is claimed by the applicant.  Upon request, the
11.6 	applicant shall make available to the commissioner for
11.7 	examination, a sample of appraisal reports that the applicant
11.8 	has prepared in the course of appraisal practice.
11.9 	(c) Applicants may not receive credit for experience
11.10 	accumulated while unlicensed, if the experience is based on
11.11 	activities which required a license under this section.

11.12 	Sec. 20. Minnesota Statutes 2004, section 82B.19,
11.13 	subdivision 1, is amended to read:
11.14 		Subdivision 1.License renewals.  A licensed real estate
11.15 	appraiser shall present evidence satisfactory to the
11.16 	commissioner of having met the continuing education requirements
11.17 	of this chapter before the commissioner renews a license.
11.18 	The basic continuing education requirement for renewal of a
11.19 	license is the completion by the applicant either as a student
11.20 	or as an instructor, during the immediately preceding term of
11.21 	licensing, of at least 30 classroom hours of instruction in
11.22 	courses or seminars that have received the approval of the
11.23 	commissioner. Classroom hour credit must not be accepted for
11.24 	courses of less than two hours.As part of the continuing
11.25 	education requirements of this section, the commissioner shall
11.26 	require that all real estate appraisers ~~receive at least seven~~
11.27 	~~hours of training each license period in courses in laws or~~
11.28 	~~regulations on standards of professional practice~~ successfully
11.29 	complete the seven-hour national USPAP update course every two
11.30 	years.  If the applicant's immediately preceding term of
11.31 	licensing consisted of 12 or more months, but fewer than 24
11.32 	months, the applicant must provide evidence of completion of 15
11.33 	hours of instruction during the license period. ~~If the~~
11.34 	~~immediately preceding term of licensing consisted of fewer than~~
11.35 	~~12 months, no continuing education need be reported.~~The credit
11.36 	hours required under this section may be credited to a person
12.1 	for distance education courses that meet Appraiser
12.2 	Qualifications Board criteria.

12.3 	Sec. 21. REPEALER.
 12.4 	(a) Minnesota Statutes 2004, section 82B.221, is repealed.
12.5 	(b) Minnesota Rules, part 2808.2200, is repealed.