1.1                          A bill for an act 
  1.2             relating to commerce; classifying certain data; 
  1.3             regulating continuing education and licensing 
  1.4             requirements for certain licensees; regulating the 
  1.5             contractor's recovery fund; providing for the adoption 
  1.6             and amendment of uniform conveyancing forms; repealing 
  1.7             certain obsolete, unnecessary, or redundant rules; 
  1.8             amending Minnesota Statutes 2000, sections 82.20, 
  1.9             subdivision 13; 82.22, subdivision 6; 82B.19, 
  1.10            subdivision 1; 155A.07, by adding a subdivision; 
  1.11            326.975, by adding subdivisions; 507.09; Minnesota 
  1.12            Statutes 2001 Supplement, section 82.22, subdivision 
  1.13            13; proposing coding for new law in Minnesota 
  1.14            Statutes, chapter 13; repealing Minnesota Rules, parts 
  1.15            2705.3000; 2782.0100; 2782.0200; 2782.0300; 2782.0400; 
  1.16            2782.0500; 2782.0600; 2782.0700; 2782.0800; 2800.0100, 
  1.17            subparts 6, 10; 2808.2200, subparts 6, 7, 8; 
  1.18            2830.0020; 2830.0030; 2830.0040; 2830.0050; 2830.0060; 
  1.19            2830.0070; 2870.0100; 2870.1100; 2870.1200; 2870.1400; 
  1.20            2870.1500; 2870.1700; 2870.1800; 2870.1900; 2870.2000; 
  1.21            2870.2100; 2870.2200; 2870.2300; 2870.3100; 2870.3200; 
  1.22            2870.3300; 2870.3400; 2870.3500; 2870.3600; 2870.3700; 
  1.23            2870.3800; 2870.3900; 2870.4000; 2870.4100; 2870.5100. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  [13.7111] [HEALTH INFORMATION.] 
  1.26     Individually identifiable health information received by 
  1.27  the commissioner in the course of the examination or 
  1.28  investigation of regulated entities is classified as private 
  1.29  data. 
  1.30     Sec. 2.  Minnesota Statutes 2000, section 82.20, 
  1.31  subdivision 13, is amended to read: 
  1.32     Subd. 13.  [LIMITED BROKER'S LICENSE.] (a) The commissioner 
  1.33  shall have the authority to issue a limited real estate broker's 
  1.34  license authorizing the licensee to engage in transactions as 
  2.1   principal only.  Such license shall be issued only after receipt 
  2.2   of the application described in subdivision 3 and payment of the 
  2.3   fee prescribed by section 82.21, subdivision 1.  No salesperson 
  2.4   may be licensed to act on behalf of an individual holding a 
  2.5   limited broker's license.  An officer of a corporation or 
  2.6   partner of a partnership licensed as a limited broker may act on 
  2.7   behalf of that corporation or partnership without being subject 
  2.8   to the licensing requirements. 
  2.9      (b) A limited broker's license shall also authorize the 
  2.10  licensee to engage in negotiation of mortgage loans, other than 
  2.11  residential mortgage loans, as described in section 82.17, 
  2.12  subdivision 4, clause (b). 
  2.13     Sec. 3.  Minnesota Statutes 2000, section 82.22, 
  2.14  subdivision 6, is amended to read: 
  2.15     Subd. 6.  [INSTRUCTION; NEW LICENSES.] (a) Every applicant 
  2.16  for a salesperson's license shall be required to successfully 
  2.17  complete a course of study in the real estate field consisting 
  2.18  of 30 hours of instruction approved by the commissioner before 
  2.19  taking the examination specified in subdivision 1.  Every 
  2.20  applicant for a salesperson's license shall be required to 
  2.21  successfully complete an additional course of study in the real 
  2.22  estate field consisting of 60 hours of instruction approved by 
  2.23  the commissioner, of which three hours shall consist of training 
  2.24  in state and federal fair housing laws, regulations, and rules, 
  2.25  and of which two hours must consist of training in laws and 
  2.26  regulations on agency representation and disclosure, before 
  2.27  filing an application for the license.  Every salesperson shall, 
  2.28  within one year of licensure, be required to successfully 
  2.29  complete a course of study in the real estate field consisting 
  2.30  of 30 hours of instruction approved by the commissioner. 
  2.31     (b) The commissioner may approve courses of study in the 
  2.32  real estate field offered in educational institutions of higher 
  2.33  learning in this state or courses of study in the real estate 
  2.34  field developed by and offered under the auspices of the 
  2.35  national association of realtors, its affiliates, or private 
  2.36  real estate schools.  The commissioner shall not approve any 
  3.1   course offered by, sponsored by, or affiliated with any person 
  3.2   or company licensed to engage in the real estate business.  The 
  3.3   commissioner may by rule prescribe the curriculum and 
  3.4   qualification of those employed as instructors. 
  3.5      (c) An applicant for a broker's license must successfully 
  3.6   complete a course of study in the real estate field consisting 
  3.7   of 30 hours of instruction approved by the commissioner, of 
  3.8   which three hours shall consist of training in state and federal 
  3.9   fair housing laws, regulations, and rules.  The course must have 
  3.10  been completed within six 12 months prior to the date of 
  3.11  application for the broker's license. 
  3.12     (d) An applicant for a real estate closing agent's license 
  3.13  must successfully complete a course of study relating to closing 
  3.14  services consisting of eight hours of instruction approved by 
  3.15  the commissioner. 
  3.16     Sec. 4.  Minnesota Statutes 2001 Supplement, section 82.22, 
  3.17  subdivision 13, is amended to read: 
  3.18     Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
  3.19  renewal date, All real estate salespersons and all real estate 
  3.20  brokers shall be required to successfully complete 30 hours of 
  3.21  real estate continuing education, either as a student or a 
  3.22  lecturer, in courses of study approved by the commissioner, 
  3.23  during the initial license period and during each succeeding 
  3.24  24-month license period.  At least 15 of the 30 credit hours 
  3.25  must be completed during the first 12 months of the 24-month 
  3.26  licensing period.  Salespersons and brokers whose initial 
  3.27  license period extends more than 12 months are required to 
  3.28  complete 15 hours of real estate continuing education during the 
  3.29  initial license period.  Those licensees who will receive a 
  3.30  12-month license on July 1, 1995, because of the staggered 
  3.31  implementation schedule must complete 15 hours of real estate 
  3.32  continuing education as a requirement for renewal on July 1, 
  3.33  1996.  Licensees may not claim credit for continuing education 
  3.34  not actually completed as of the date their report of continuing 
  3.35  education compliance is filed. 
  3.36     (b) The commissioner shall adopt rules defining the 
  4.1   standards for course and instructor approval, and may adopt 
  4.2   rules for the proper administration of this subdivision.  The 
  4.3   commissioner may not approve a course which can be completed by 
  4.4   the student at home or outside the classroom without the 
  4.5   supervision of an instructor except accredited courses using new 
  4.6   delivery technology, including interactive technology, and the 
  4.7   Internet.  Courses in motivation, salesmanship, psychology, or 
  4.8   time management shall not be approved by the commissioner for 
  4.9   continuing education credit. 
  4.10     (c) Any program approved by Minnesota continuing legal 
  4.11  education shall be approved by the commissioner of commerce for 
  4.12  continuing education for real estate brokers and salespeople if 
  4.13  the program or any part thereof relates to real estate.  
  4.14     (d) As part of the continuing education requirements of 
  4.15  this section, the commissioner shall require that all real 
  4.16  estate brokers and salespersons receive: 
  4.17     (1) at least one hour of training during each license 
  4.18  period in courses in laws or regulations on agency 
  4.19  representation and disclosure; and 
  4.20     (2) at least one hour of training during each license 
  4.21  period in courses in state and federal fair housing laws, 
  4.22  regulations, and rules, other antidiscrimination laws, or 
  4.23  courses designed to help licensees to meet the housing needs of 
  4.24  immigrant and other underserved populations. 
  4.25     Clauses (1) and (2) do not apply to real estate 
  4.26  salespersons and real estate brokers engaged solely in the 
  4.27  commercial real estate business who file with the commissioner a 
  4.28  verification of this status along with the continuing education 
  4.29  report required under paragraph (a). 
  4.30     (e) The commissioner is authorized to establish a procedure 
  4.31  for renewal of course accreditation. 
  4.32     (f) Approved courses may be sponsored or offered by a 
  4.33  broker of a real estate company and may be held on the premises 
  4.34  of a company licensed under this chapter.  All course offerings 
  4.35  must be open to any interested individuals.  Access may be 
  4.36  restricted by the sponsor based on class size only.  Courses 
  5.1   must not be approved if attendance is restricted to any 
  5.2   particular group of people.  A broker must comply with all 
  5.3   continuing education rules prescribed by the commissioner. 
  5.4      (g) No more than one-half of the credit hours per licensing 
  5.5   period, including continuing education required under 
  5.6   subdivision 6, may be credited to a person for attending any 
  5.7   combination of courses either:  
  5.8      (1) sponsored by, offered by, or affiliated with a real 
  5.9   estate company or its agents; or 
  5.10     (2) offered using new delivery technology, including 
  5.11  interactive technology, and the Internet. 
  5.12     Sec. 5.  Minnesota Statutes 2000, section 82B.19, 
  5.13  subdivision 1, is amended to read: 
  5.14     Subdivision 1.  [LICENSE RENEWALS.] A licensed real estate 
  5.15  appraiser shall present evidence satisfactory to the 
  5.16  commissioner of having met the continuing education requirements 
  5.17  of this chapter before the commissioner renews a license. 
  5.18     The basic continuing education requirement for renewal of a 
  5.19  license is the completion by the applicant either as a student 
  5.20  or as an instructor, during the immediately preceding term of 
  5.21  licensing, of at least 30 classroom hours of instruction in 
  5.22  courses or seminars that have received the approval of the 
  5.23  commissioner.  As part of the continuing education requirements 
  5.24  of this section, the commissioner shall require that all real 
  5.25  estate appraisers receive at least four seven hours of training 
  5.26  each license period in courses in laws or regulations on 
  5.27  standards of professional practice.  If the applicant's 
  5.28  immediately preceding term of licensing consisted of 12 or more 
  5.29  months, but fewer than 24 months, the applicant must provide 
  5.30  evidence of completion of 15 hours of instruction during the 
  5.31  license period.  If the immediately preceding term of licensing 
  5.32  consisted of fewer than 12 months, no continuing education need 
  5.33  be reported. 
  5.34     Sec. 6.  Minnesota Statutes 2000, section 155A.07, is 
  5.35  amended by adding a subdivision to read: 
  5.36     Subd. 9.  [RECIPROCAL LICENSES.] Notwithstanding the 
  6.1   absence of a written reciprocal licensing agreement under 
  6.2   section 45.0292, a nonresident cosmetologist, manicurist, or 
  6.3   esthetician may be licensed in Minnesota if the individual has 
  6.4   completed cosmetology school in a state with the same or greater 
  6.5   school hour requirements, has an active license in that state, 
  6.6   and has passed the Minnesota-specific written operator 
  6.7   examination for cosmetologist, manicurist, or esthetician.  
  6.8   Reciprocal licenses shall not be issued for managers or 
  6.9   instructors. 
  6.10     Sec. 7.  Minnesota Statutes 2000, section 326.975, is 
  6.11  amended by adding a subdivision to read: 
  6.12     Subd. 1a.  [LIMITATION.] Nothing may obligate the fund for 
  6.13  claims brought by: 
  6.14     (1) insurers or sureties under subrogation or similar 
  6.15  theories; or 
  6.16     (2) owners of residential property where the contracting 
  6.17  activity complained of was the result of a contract entered into 
  6.18  with a prior owner, unless the claim is brought and judgment 
  6.19  rendered for breach of the statutory warranty set forth in 
  6.20  chapter 327A. 
  6.21     Sec. 8.  Minnesota Statutes 2000, section 326.975, is 
  6.22  amended by adding a subdivision to read: 
  6.23     Subd. 1b.  [CONDOMINIUMS OR TOWNHOUSES.] For purposes of 
  6.24  this section, the owner or lessee of a condominium or townhouse 
  6.25  is considered an owner or lessee of residential property 
  6.26  regardless of the number of residential units per building. 
  6.27     Sec. 9.  Minnesota Statutes 2000, section 507.09, is 
  6.28  amended to read: 
  6.29     507.09 [FORMS APPROVED; AMENDMENTS.] 
  6.30     The several forms of deeds, mortgages, land contracts, 
  6.31  assignments, satisfactions, and other conveyancing instruments 
  6.32  prepared by the uniform conveyancing blanks commission and filed 
  6.33  by the commission with the secretary of state pursuant to Laws 
  6.34  1929, chapter 135, as amended by Laws 1931, chapter 34, are 
  6.35  approved and recommended for use in the state.  Such forms shall 
  6.36  be kept on file with and be preserved by the commissioner of 
  7.1   commerce as a public record.  The commissioner of commerce may 
  7.2   appoint an advisory task force on uniform conveyancing forms to 
  7.3   recommend to the commissioner of commerce amendments to existing 
  7.4   forms or the adoption of new forms.  The task force shall 
  7.5   expire, and the terms, compensation, and removal of members 
  7.6   shall be as provided in section 15.059.  The commissioner of 
  7.7   commerce may adopt amended or new forms consistent with the laws 
  7.8   of this state by complying with the procedures in section 
  7.9   14.386, paragraph (a), clauses (1) and (3).  Section 14.386, 
  7.10  paragraph (b), does not apply to these forms order. 
  7.11     Sec. 10.  [OBSOLETE, UNNECESSARY, OR REDUNDANT RULES; 
  7.12  REPEALER.] 
  7.13     Subdivision 1.  [DATA SERVICES ORGANIZATIONS; SCHEDULE 
  7.14  RATING PLANS.] Minnesota Rules, part 2705.3000, is repealed. 
  7.15     Subd. 2.  [LIQUOR LIABILITY INSURANCE; ASSIGNED RISK AND 
  7.16  MARKET ASSISTANCE PLANS.] Minnesota Rules, parts 2782.0100; 
  7.17  2782.0200; 2782.0300; 2782.0400; 2782.0500; 2782.0600; 
  7.18  2782.0700; and 2782.0800, are repealed. 
  7.19     Subd. 3.  [REAL ESTATE BROKER LICENSING; DEFINITIONS OF 
  7.20  OVERRIDE CLAUSE AND PROTECTIVE LIST.] Minnesota Rules, part 
  7.21  2800.0100, subparts 6 and 10, are repealed. 
  7.22     Subd. 4.  [REAL ESTATE APPRAISERS; EXPERIENCE REQUIREMENTS 
  7.23  FOR LICENSED APPRAISERS AND CERTIFIED RESIDENTIAL AND GENERAL 
  7.24  APPRAISERS.] Minnesota Rules, part 2808.2200, subparts 6, 7, and 
  7.25  8, are repealed. 
  7.26     Subd. 5.  [ABSTRACTORS; REGULATORY AUTHORITY.] Minnesota 
  7.27  Rules, parts 2830.0020; 2830.0030; 2830.0040; 2830.0050; 
  7.28  2830.0060; and 2830.0070, are repealed. 
  7.29     Subd. 6.  [COLLECTION AGENCIES.] Minnesota Rules, parts 
  7.30  2870.0100; 2870.1100; 2870.1200; 2870.1400; 2870.1500; 
  7.31  2870.1700; 2870.1800; 2870.1900; 2870.2000; 2870.2100; 
  7.32  2870.2200; 2870.2300; 2870.3100; 2870.3200; 2870.3300; 
  7.33  2870.3400; 2870.3500; 2870.3600; 2870.3700; 2870.3800; 
  7.34  2870.3900; 2870.4000; 2870.4100; and 2870.5100, are repealed. 
  7.35     Sec. 11.  [EFFECTIVE DATES.] 
  7.36     Sections 1, 2, and 7 to 10 are effective the day following 
  8.1   final enactment.  Section 3 is effective July 1, 2002.  Section 
  8.2   4 is effective July 1, 2002, for renewals on or after that 
  8.3   date.  Section 5 is effective September 1, 2003, for renewals on 
  8.4   or after that date.