Bill Text: MN HF647 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Division of insurance fraud renamed; subpoenas, coverages, and real estate appraiser licenses regulated; continuing education and risk-based capital requirements, workers' compensation self-insurance plan funding, services requests, and petroleum product specifications modified; actuarial opinions required and regulated; exclusions prohibited; no-fault benefits and coverages, arbitration, and health claims appeals modified; and unnecessary laws repealed.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed - Dead) 2013-05-17 - Second reading [HF647 Detail]

Download: Minnesota-2013-HF647-Engrossed.html

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A bill for an act

relating to commerce; renaming the division of insurance fraud; regulating
subpoenas issued by the commissioner; modifying certain continuing education
requirements; requiring and regulating an annual statement of actuarial opinions
of reserves and supporting documentation of property and casualty companies;
modifying risk-based capital requirements for certain insurers; regulating
certain coverages; prohibiting certain exclusions; modifying no-fault benefits
and coverages, arbitration, and health claims appeals; modifying funding
provisions for workers' compensation self-insurance plans; regulating real
estate appraiser licenses; modifying service requests in connection with Public
Utility Commission matters; modifying petroleum product specifications;
repealing certain unnecessary laws;amending Minnesota Statutes 2012, sections
45.0135; 45.027, subdivision 2; 45.307; 45.43; 60A.62, subdivision 1; 65B.44,
subdivisions 3, 4; 65B.525, subdivision 1; 65B.54, by adding a subdivision;
72A.327; 79A.04, subdivision 3a; 82B.08, by adding a subdivision; 82B.094;
82B.095, subdivision 2; 82B.10, subdivision 1; 82B.13, subdivisions 1, 4,
5, 8, by adding a subdivision; 216.17, subdivisions 2, 4; 216B.18; 239.761,
subdivision 8, as amended; 299C.40, subdivision 1; proposing coding for new
law in Minnesota Statutes, chapter 60A; repealing Minnesota Statutes 2012,
sections 82B.095, subdivision 1; 115C.09, subdivision 3k; Laws 2000, chapter
488, article 3, section 37.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 45.0135, is amended to read:
45.0135 DIVISION OF INSURANCE COMMERCE FRAUD PREVENTION
BUREAU.
    Subd. 2a. Authorization. The commissioner may appoint peace officers, as defined
in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as
defined in section 626.84, subdivision 1, paragraph (f), known as the Division of Insurance
Commerce Fraud Prevention Bureau, to conduct investigations, and to make arrests under
sections 629.30 and 629.34. The jurisdiction of the law enforcement agency is limited to
offenses related to insurance fraud.
    Subd. 2b. Duties. The Division of Insurance Commerce Fraud Prevention Bureau
shall:
(1) review notices and reports of insurance fraud submitted by authorized insurers,
their employees, and agents or producers;
(2) respond to notifications or complaints of suspected insurance fraud generated by
other law enforcement agencies, state or federal governmental units, or any other person;
(3) initiate inquiries and conduct investigations when the division bureau has reason
to believe that insurance fraud has been or is being committed; and
(4) report incidents of alleged insurance fraud disclosed by its investigations to
appropriate law enforcement agencies, including, but not limited to, the attorney general,
county attorneys, or any other appropriate law enforcement or regulatory agency, and shall
assemble evidence, prepare charges, and otherwise assist any law enforcement authority
having jurisdiction.
    Subd. 2c. Arrests and investigations. The initial processing of a person arrested
by the Division of Insurance Commerce Fraud Prevention Bureau for an offense within
its jurisdiction is the responsibility of the Division of Insurance Fraud Prevention bureau
unless otherwise directed by the law enforcement agency with primary jurisdiction.
Subsequent investigation shall be the responsibility of the Division of Insurance Fraud
Prevention bureau unless otherwise directed by the law enforcement agency with primary
jurisdiction. At the request of the primary jurisdiction, the Division of Insurance Fraud
Prevention bureau may assist in a subsequent investigation being carried out by the
primary jurisdiction.
    Subd. 2d. Policy for notice of investigations. The Division of Insurance Commerce
Fraud Prevention Bureau must develop a policy for notifying the law enforcement agency
with primary jurisdiction when it has initiated investigation of any person within the
jurisdiction of that agency.
    Subd. 2e. Chief law enforcement officer. The commissioner shall appoint a peace
officer employed full time to be the chief law enforcement officer and to be responsible
for the management of the Division of Insurance Commerce Fraud Prevention Bureau.
The chief law enforcement officer shall possess the necessary police and management
experience to manage a law enforcement agency. The chief law enforcement officer
may appoint, discipline, and discharge all employees of the Division of Insurance Fraud
Prevention bureau. All police managerial and supervisory personnel must be full-time
employees of the Division of Insurance Fraud Prevention bureau. Supervisory personnel
must be on duty and available any time peace officers of the Division of Insurance Fraud
Prevention bureau are on duty.
    Subd. 2f. Compliance. Except as otherwise provided in this section, the Division of
Insurance Fraud Prevention Commerce Fraud Bureau shall comply with all statutes and
administrative rules relating to the operation and management of a law enforcement agency.
    Subd. 3. Evidence, documentation, and related materials. If the division bureau
seeks evidence, documentation, and related materials pertinent to an investigation, and the
matter is located outside of this state, the division bureau may designate representatives,
including officials of the state where the matter is located, to secure the matter or inspect
the matter on its behalf.
    Subd. 4. Confidentiality and immunity. The provisions of chapter 13, including,
but not limited to, section 13.82, apply to the classification, disclosure, and collection of
data relating to the Division of Insurance Commerce Fraud Prevention Bureau.
    Subd. 5. Annual report on activities and cost-effectiveness. The Division of
Insurance Commerce Fraud Prevention Bureau shall maintain records and information
in order to produce an annual report of its activities as may be prescribed by the
commissioner of commerce. The commissioner shall report annually to the house of
representatives and senate standing committees with jurisdiction over insurance issues
as to the activities of the division bureau and the cost-effectiveness of the programs
established by the division bureau.
    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention
account is created in the state treasury. Money received from assessments under subdivision
7 is deposited in the account. Money in this fund is appropriated to the commissioner of
commerce for the purposes specified in this section and sections 60A.951 to 60A.956.
    Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of
Minnesota, including surplus lines carriers, and having Minnesota earned premium the
previous calendar year shall remit an assessment to the commissioner for deposit in the
insurance fraud prevention account on or before June 1 of each year. The amount of the
assessment shall be based on the insurer's total assets and on the insurer's total written
Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13.
The assessment is calculated to be an amount up to the following:

		Total Assets	Assessment
		Less than $100,000,000		$	200
		$100,000,000 to $1,000,000,000		$	750
		Over $1,000,000,000		$	2,000
		Minnesota Written Premium	Assessment
		Less than $10,000,000		$	200
		$10,000,000 to $100,000,000		$	750
		Over $100,000,000		$	2,000

For purposes of this subdivision, the following entities are not considered to be
insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or
township mutuals organized under chapter 67A.
    Subd. 8. Investigations; health-related boards. (a) The Division of Insurance
Commerce Fraud Prevention Bureau may consult with the appropriate health-related board
when a licensee, licensed under chapter 144E, 147, 148, 148B, or 150A, is suspected
of insurance fraud.
(b) The division bureau shall, for any conviction involving or related to insurance,
send copies of all public data in its possession to the appropriate health-related licensing
board.

    Sec. 2. Minnesota Statutes 2012, section 45.027, subdivision 2, is amended to read:
    Subd. 2. Power to compel production of evidence. For the purpose of any
investigation, hearing, proceeding, or inquiry related to the duties and responsibilities
entrusted to the commissioner, the commissioner or a designated representative may
administer oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers, correspondence, memoranda,
agreements, or other documents or records that the commissioner considers relevant
or material to the inquiry.
A subpoena issued pursuant to this subdivision must state that the person to whom
the subpoena is directed may not disclose the fact that the subpoena was issued or the fact
that the requested records have been given to law enforcement personnel except:
(1) insofar as the disclosure is necessary to find and disclose the records; or
(2) pursuant to court order.

    Sec. 3. Minnesota Statutes 2012, section 45.307, is amended to read:
45.307 EDUCATION PROVIDER.
    Subdivision 1. Duty to make records and data available to commissioner. A
person applying for approval as an education provider must make available upon request
such records and data required by the commissioner to administer the provisions and
further the purposes of this chapter.
    Subd. 2. Responsibility for actions of coordinators and instructors. An
education provider is responsible for any actions taken by one or more of its coordinators
or instructors in the course of performing activities associated with license education
courses provided under this chapter.
    Subd. 3. Responsibility for approval of coordinator. An education provider
must ensure that an individual acting as a coordinator on its behalf under this chapter has
received prior approval from the commissioner to act as a coordinator.

    Sec. 4. Minnesota Statutes 2012, section 45.43, is amended to read:
45.43 REPORTING REQUIREMENTS.
    Subdivision 1. Course completions. Required education must be reported in a
manner prescribed by the commissioner within ten days of the course completion.
    Subd. 2. Violations and penalties. (a) Each failure to report an individual licensee's
course completion in the manner prescribed by subdivision 1 constitutes a separate
violation.
(b) The commissioner may impose a civil penalty not to exceed $500 per violation
upon an education provider that violates subdivision 1, provided that the total amount
of such civil penalties imposed upon an education provider must not exceed $10,000
per course offering.

    Sec. 5. [60A.0812] PROHIBITED EXCLUSION; CERTAIN PROPERTY AND
CASUALTY POLICIES.
An automobile insurance policy, personal excess liability policy, or personal
umbrella policy must not contain an exclusion of, or limitation on, liability for damages
for bodily injury solely because the injured person is a resident or member of the insured's
household, or is related to the insured by blood or marriage.
EFFECTIVE DATE.This section is effective January 1, 2014, and applies to
policies issued, renewed, or continued on or after that date.

    Sec. 6. [60A.1295] ACTUARIAL OPINION OF RESERVES AND SUPPORTING
DOCUMENTATION.
    Subdivision 1. Statement of actuarial opinion. Every property and casualty
insurance company doing business in this state, unless otherwise exempted by the
domiciliary commissioner, shall annually submit the opinion of an appointed actuary
entitled "Statement of Actuarial Opinion." This opinion must be filed in accordance with
the appropriate National Association of Insurance Commissioners (NAIC) Property and
Casualty Annual Statement Instructions.
    Subd. 2. Actuarial opinion summary. (a) Every property and casualty insurance
company domiciled in this state that is required to submit a statement of actuarial opinion
shall annually submit an actuarial opinion summary, written by the company's appointed
actuary. This actuarial opinion summary must be filed in accordance with the appropriate
NAIC Property and Casualty Annual Statement Instructions and must be considered as a
document supporting the actuarial opinion required in subdivision 1.
(b) A company licensed but not domiciled in this state shall provide the actuarial
opinion summary upon request.
    Subd. 3. Actuarial report and workpapers. (a) An actuarial report and its
underlying workpapers as required by the appropriate NAIC Property and Casualty
Annual Statement Instructions must be prepared to support each actuarial opinion.
(b) If the insurance company fails to provide a supporting actuarial report and/or
workpapers at the request of the commissioner or the commissioner determines that
the supporting actuarial report or workpapers provided by the insurance company are
otherwise unacceptable to the commissioner, the commissioner may engage a qualified
actuary at the expense of the company to review the opinion and the basis for the opinion
and prepare the supporting actuarial report or workpapers.
    Subd. 4. Liability. The appointed actuary shall not be liable for damages to any
person, other than the insurance company and the commissioner, for any act, error,
omission, decision, or conduct with respect to the actuary's opinion, except in cases of
fraud or willful misconduct on the part of the appointed actuary.
EFFECTIVE DATE.This section is effective December 31, 2013.

    Sec. 7. [60A.1296] CONFIDENTIALITY.
    Subdivision 1. Actuarial opinion; public document. The statement of actuarial
opinion must be provided with the annual statement in accordance with the appropriate
National Association of Insurance Commissioners (NAIC) Property and Casualty Annual
Statement Instructions and must be treated as a public document.
    Subd. 2. Supporting materials; confidential and privileged. (a) Documents,
materials, or other information in the possession or control of the Department of Commerce
that are considered an actuarial report, workpapers, or actuarial opinion summary
provided in support of the opinion, and any other material provided by the company to the
commissioner in connection with the actuarial report, workpapers, or actuarial opinion
summary, shall be confidential by law and privileged, shall not be subject to subpoena,
and shall not be subject to discovery or admissible in evidence in any private civil action.
(b) This provision shall not be construed to limit the commissioner's authority to:
(1) release the documents to the Actuarial Board for Counseling and Discipline
(ABCD) so long as the material is required for the purpose of professional disciplinary
proceedings and the ABCD establishes procedures satisfactory to the commissioner for
preserving the confidentiality of the documents; or
(2) use the documents, materials, or other information in furtherance of any
regulatory or legal action brought as part of the commissioner's official duties.
    Subd. 3. Protections. Neither the commissioner nor any person who received
the documents, materials, or other information while acting under the authority of
the commissioner shall be permitted or required to testify in any private civil action
concerning any confidential documents, materials, or information subject to subdivision 2.
    Subd. 4. Exceptions. In order to assist in the performance of the commissioner's
duties, the commissioner:
(1) may share documents, materials, or other information, including the confidential
and privileged documents, materials, or information subject to subdivision 2 with other
state, federal, and international regulatory agencies; with the NAIC and its affiliates
and subsidiaries; and with state, federal, and international law enforcement authorities,
provided that the recipient agrees to maintain the confidentiality and privileged status
of the document, material, or other information and has the legal authority to maintain
confidentiality;
(2) may receive documents, materials, or information, including otherwise
confidential and privileged documents, materials, or information, from NAIC and its
affiliates and subsidiaries, and from regulatory and law enforcement officials of other
foreign or domestic jurisdictions, and shall maintain as confidential or privileged any
document, material, or information received with notice or the understanding that it is
confidential or privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and
(3) may enter into agreements governing sharing and use of information consistent
with subdivisions 2 to 4.
    Subd. 5. Nonwaiver. No waiver of applicable privilege or claim of confidentiality
in the documents, materials, or information shall occur as a result of disclosure to the
commissioner under this section or as a result of sharing as authorized in subdivision 4.
EFFECTIVE DATE.This section is effective December 31, 2013.

    Sec. 8. Minnesota Statutes 2012, section 60A.62, subdivision 1, is amended to read:
    Subdivision 1. Definition. "Company action level event" means any of the
following events:
(1) the filing of a risk-based capital report by an insurer which indicates that:
(i) the insurer's total adjusted capital is greater than or equal to its regulatory action
level risk-based capital but less than its company action level risk-based capital; or
(ii) if a life and/or health insurer, the insurer has total adjusted capital that is greater
than or equal to its company action level risk-based capital but less than the product of its
authorized control level risk-based capital and 2.5 3.0 and has a negative trend; or
(iii) if a property and casualty insurer, the insurer has total adjusted capital which
is greater than or equal to its company action level risk-based capital but less than the
product of its authorized control level risk-based capital and 3.0 and triggers the trend
test determined in accordance with the trend test calculation included in the property
and casualty risk-based capital instructions;
(2) the notification by the commissioner to the insurer of an adjusted risk-based
capital report that indicates an event in clause (1), provided the insurer does not challenge
the adjusted risk-based report under section 60A.66; or
(3) if, pursuant to section 60A.66, an insurer challenges an adjusted risk-based
capital report that indicates the event in clause (1), the notification by the commissioner to
the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
EFFECTIVE DATE.This section is effective December 31, 2013.

    Sec. 9. Minnesota Statutes 2012, section 65B.44, subdivision 3, is amended to read:
    Subd. 3. Disability and income loss benefits. (a) Disability and income loss
benefits shall provide compensation for 85 percent of the injured person's loss of present
and future gross income from inability to work proximately caused by the nonfatal
injury subject to a maximum of $250 $500 per week. Loss of income includes the costs
incurred by a self-employed person to hire substitute employees to perform tasks which
are necessary to maintain the income of the injured person, which are normally performed
by the injured person, and which cannot be performed because of the injury.
(b) If the injured person is unemployed at the time of injury and is receiving or is
eligible to receive unemployment benefits under chapter 268, but the injured person loses
eligibility for those benefits because of inability to work caused by the injury, disability
and income loss benefits shall provide compensation for the lost benefits in an amount
equal to the unemployment benefits which otherwise would have been payable, subject to
a maximum of $250 $500 per week.
(c) Compensation under this subdivision shall be reduced by any income from
substitute work actually performed by the injured person or by income the injured person
would have earned in available appropriate substitute work which the injured person was
capable of performing but unreasonably failed to undertake.
(d) For the purposes of this section "inability to work" means disability which
prevents the injured person from engaging in any substantial gainful occupation or
employment on a regular basis, for wage or profit, for which the injured person is or may
by training become reasonably qualified. If the injured person returns to employment and
is unable by reason of the injury to work continuously, compensation for lost income shall
be reduced by the income received while the injured person is actually able to work. The
weekly maximums may not be prorated to arrive at a daily maximum, even if the injured
person does not incur loss of income for a full week.
(e) For the purposes of this section, an injured person who is "unable by reason of
the injury to work continuously" includes, but is not limited to, a person who misses time
from work, including reasonable travel time, and loses income, vacation, or sick leave
benefits, to obtain medical treatment for an injury arising out of the maintenance or use
of a motor vehicle.

    Sec. 10. Minnesota Statutes 2012, section 65B.44, subdivision 4, is amended to read:
    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be
reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or
delivery under the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 525A.

    Sec. 11. Minnesota Statutes 2012, section 65B.525, subdivision 1, is amended to read:
    Subdivision 1. Mandatory submission to binding arbitration. (a) Except as
otherwise provided in section 72A.327, the Supreme Court and the several courts of
general trial jurisdiction of this state shall by rules of court or other constitutionally
allowable device, provide for the mandatory submission to binding arbitration of all cases
at issue where the claim at the commencement of arbitration is in an amount of $10,000
or less against any insured's reparation obligor for no-fault benefits or comprehensive or
collision damage coverage.
(b) If assigned claims against a reparation obligor are submitted pursuant to this
section, the aggregate amount of the claims is considered to be one claim for purposes of
the jurisdictional dollar limitation in paragraph (a). Aggregated or consolidated claims in
excess of $10,000 must be recovered in an action in district court.

    Sec. 12. Minnesota Statutes 2012, section 65B.54, is amended by adding a subdivision
to read:
    Subd. 8. Health care provider claims arbitration limited. A health care provider
shall not submit any medical benefit claims to arbitration pursuant to section 65B.525 as
an assignment of benefits assignee.

    Sec. 13. Minnesota Statutes 2012, section 72A.327, is amended to read:
72A.327 HEALTH CLAIMS; RIGHTS OF APPEAL.
(a) An insured whose claim for medical benefits under chapter 65B is denied because
the treatment or services for which the claim is made is claimed to be experimental,
investigative, not medically necessary, or otherwise not generally accepted by licensed
health care providers and for which the insured has financial responsibility in excess of
applicable co-payments and deductibles may appeal the denial to the commissioner. For
purposes of this section, "insured" does not include an assignment of benefits assignee.
(b) This section does not apply to claims for health benefits which have been
arbitrated under section 65B.525, subdivision 1.
(c) A three-member panel shall review the denial of the claim and report to the
commissioner. The commissioner shall establish a list of qualified individuals who are
eligible to serve on the panel. In establishing the list, the commissioner shall consult with
representatives of the contributing members as defined in section 65B.01, subdivision 2,
and professional societies. Each panel must include: one person with medical expertise as
identified by the contributing members; one person with medical expertise as identified by
the professional societies; and one public member. The commissioner, upon initiation of an
arbitration, shall select from each list three potential arbitrators and shall notify the issuer
and the claimant of the selection. Each party shall strike one of the potential arbitrators and
an arbitrator shall be selected by the commissioner from the remaining names of potential
arbitrators if more than one potential arbitrator is left. In the event of multiparty arbitration,
the commissioner may increase the number of potential arbitrators and divide the strikes
so as to afford an equal number of strikes to each adverse interest. If the selected arbitrator
is unable or unwilling to serve for any reason, the commissioner may appoint an arbitrator,
which will be subject to challenge only for cause. The party that denied the coverage has
the burden of proving that the services or treatment are experimental, investigative, not
medically necessary, or not generally accepted by licensed health care professionals. In
determining whether the burden has been met, the panel may consider expert testimony,
medical literature, and any other relevant sources. If the party fails to sustain its burden,
the commissioner may order the immediate payment of the claim. All proceedings of the
panel and any documents received or developed by the review process are nonpublic.
(d) A person aggrieved by an order under this section may appeal the order. The
appeal shall be pursuant to section 65B.525 where appropriate, or to the district court
for a trial de novo, in all other cases. In nonemergency situations, if the insurer has an
internal grievance or appeal process, the insured must exhaust that process before the
external appeal. In no event shall the internal grievance process exceed the time limits
described in section 72A.201, subdivision 4a.
(e) If prior authorization is required before services or treatment can be rendered, an
appeal of the denial of prior authorization may be made as provided in this section.
(f) The commissioner shall adopt procedural rules for the conduct of appeals.
(g) The permanent rulemaking authority granted in this section is effective June 2,
1989, regardless of the actual effective date of January 1, 1990.

    Sec. 14. Minnesota Statutes 2012, section 79A.04, subdivision 3a, is amended to read:
    Subd. 3a. Acceptable securities. The following are acceptable securities and surety
bonds for the purpose of funding self-insurance plans and group self-insurance plans:
(1) direct obligations of the United States government except mortgage-backed
securities of the Government National Mortgage Association any kind;
(2) bonds, notes, debentures, and other instruments which are obligations of
agencies and instrumentalities of the United States including, but not limited to, the
Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation,
the Federal Home Loan Bank, the Student Loan Marketing Association, and the Farm
Credit System, and their successors, but not including collateralized mortgage obligations
or mortgage pass-through instruments;
(3) bonds or securities that are issued by the state of Minnesota and that are secured
by the full faith and credit of the state;
(4) certificates of deposit which are insured by the Federal Deposit Insurance
Corporation and are issued by a Minnesota depository institution and approved by the
commissioner;
(5) obligations of, or instruments unconditionally guaranteed by, Minnesota
depository financial institutions whose long-term debt rating is at least AA-, Aa3, or their
equivalent, by at least two nationally recognized rating agencies;
(6) surety bonds issued by a corporate surety authorized by the commissioner of
commerce to transact such business in the state;
(7) obligations of or instruments unconditionally guaranteed by Minnesota insurance
companies, whose long-term debt rating is at least AA-, Aa3, or their equivalent, by at least
two nationally recognized rating agencies and whose rating is A+ by A. M. Best, Inc.; and
(8) any guarantee from the United States government whereby the payment of the
workers' compensation liability of a self-insurer is guaranteed; and bonds which are the
general obligation of the Minnesota Housing Finance Agency.
(8) cash;
(9) time deposits that are fully insured by any federal agency; and
(10) letters of credit issued by a financial institution approved by the commissioner.

    Sec. 15. Minnesota Statutes 2012, section 82B.08, is amended by adding a subdivision
to read:
    Subd. 2a. Criminal history record check; fingerprints. (a) An applicant for a
license must:
(1) consent to a criminal history record check;
(2) submit a fingerprint card in a form acceptable to the commissioner; and
(3) pay the fee required to perform criminal history record checks with the Minnesota
Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
(b) The commissioner may contract for the collection and transmission of
fingerprints required under this chapter and may order the fee for collecting and
transmitting fingerprints to be payable directly to the contractor by the applicant. The
commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
(c) The commissioner shall submit the applicant's fingerprints and consent and
the required fee to the superintendent of the Bureau of Criminal Apprehension. The
superintendent shall perform a check of the state criminal history repository and is
authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation
to obtain the national criminal history record. The superintendent shall return the results
of the state and national criminal history records checks to the commissioner.
(d) This subdivision applies to an applicant for an initial license or a renewal license.
EFFECTIVE DATE.This section is effective January 1, 2015, and applies to
persons applying for a license pursuant to Minnesota Statutes, chapter 82B, on or after that
date who were not previously fingerprinted in compliance with the terms of this subdivision.

    Sec. 16. Minnesota Statutes 2012, section 82B.094, is amended to read:
82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.
(a) A certified residential real property appraiser or a certified general real property
appraiser, in good standing, may engage a trainee real property appraiser to assist in the
performance of real estate appraisals, provided that the certified residential real property
appraiser or a certified general real property appraiser:
(1) has been licensed in good standing as either a certified residential real property
appraiser or a certified general real property appraiser for a total of at least three years;
(2) has completed a course that is specifically oriented to the requirements and
responsibilities of supervisory appraisers and trainee appraisers;
(3) has not been the subject of any license or certificate suspension or revocation or
has not been prohibited from supervising activities in this state or any other state within
the previous two years;
(2) (4) has no more than three trainee real property appraisers working under
supervision at any one time;
(3) (5) actively and personally supervises the trainee real property appraiser, which
includes ensuring that research of general and specific data has been adequately conducted
and properly reported, application of appraisal principles and methodologies has been
properly applied, that the analysis is sound and adequately reported, and that any analyses,
opinions, or conclusions are adequately developed and reported so that the appraisal
report is not misleading;
(4) (6) discusses with the trainee real property appraiser any necessary and
appropriate changes that are made to a report, involving any trainee appraiser, before it is
transmitted to the client. Changes not discussed with the trainee real property appraiser
that are made by the supervising appraiser must be provided in writing to the trainee real
property appraiser upon completion of the appraisal report;
(5) (7) accompanies the trainee real property appraiser on the inspections of the
subject properties and drive-by inspections of the comparable sales on all appraisal
assignments for which the trainee will perform work until the trainee appraiser is
determined to be competent, in accordance with the competency rule of USPAP for the
property type;
(6) (8) accepts full responsibility for the appraisal report by signing and certifying
that the report complies with USPAP; and
(7) (9) reviews and signs the trainee real property appraiser's appraisal report or
reports or if the trainee appraiser is not signing the report, states in the appraisal the name
of the trainee and scope of the trainee's significant contribution to the report.
(b) The supervising appraiser must review and sign the applicable experience log
required to be kept by the trainee real property appraiser.
(c) The supervising appraiser must notify the commissioner within ten days when
the supervision of a trainee real property appraiser has terminated or when the trainee
appraiser is no longer under the supervision of the supervising appraiser.
(d) The supervising appraiser must maintain a separate work file for each appraisal
assignment.
(e) The supervising appraiser must verify that any trainee real property appraiser that
is subject to supervision is properly licensed and in good standing with the commissioner.

    Sec. 17. Minnesota Statutes 2012, section 82B.095, subdivision 2, is amended to read:
    Subd. 2. Components on or after January 1, 2009 Conformance to Appraiser
Qualifications Board criteria. (a) On or after January 1, 2009, an applicant for a class
of license must document that the applicant has met the education, experience, and
examination components in effect after January 1, 2008.
(b) Qualifications for all levels of licensing must conform to the Real Property
Qualification Criteria established by the Appraisal Qualifications Board for implementation
effective January 1, 2008 2015.

    Sec. 18. Minnesota Statutes 2012, section 82B.10, subdivision 1, is amended to read:
    Subdivision 1. Generally. (a) An applicant for a license must pass an examination
conducted by the commissioner. The examinations must be of sufficient scope to establish
the competency of the applicant to act as a real estate appraiser and must conform
with the current National Uniform Exam Content Outlines published by the Appraiser
Qualifications Board.
(b) A passing grade for a real estate appraiser licensing examination must be the cut
score defined by the Appraiser Qualifications Board criteria.
(c) To qualify for a license as a trainee real property appraiser, an applicant must
pass a current trainee real property appraiser examination. The examination must test the
applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
in this chapter.
(d) To qualify for a license as a licensed real property appraiser, an applicant must
pass a current uniform licensed real property appraiser examination approved by the
Appraiser Qualifications Board. The examination must test the applicant's knowledge of
appraisal terms, principles, theories, and ethics as provided in this chapter.
(e) To qualify for a license as a certified residential real property appraiser, an
applicant must pass a current uniform certified residential real property appraiser
examination approved by the Appraiser Qualifications Board. The examination must test
the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided
in this chapter.
(f) To qualify for a license as a certified general real property appraiser, an applicant
must pass a current uniform certified general real property appraiser examination approved
by the Appraiser Qualifications Board. The examination must test the applicant's
knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter.
(g) An applicant must complete the applicable education prerequisites in section
82B.13 and the experience requirements in section 82B.14 before the applicant takes the
examination required under this section.
EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.

    Sec. 19. Minnesota Statutes 2012, section 82B.13, subdivision 1, is amended to read:
    Subdivision 1. Trainee real property appraiser or licensed real property
appraiser. (a) As a prerequisite for licensing as a trainee real property appraiser or
licensed real property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has successfully completed:
(1) at least 90 classroom 75 hours of prelicense courses approved by the
commissioner. The courses must consist Fifteen of the 75 hours must include successful
completion of general real estate appraisal principles and the 15-hour national USPAP
course; and
(2) in addition to the required hours under clause (1), a course that is specifically
oriented to the requirements and responsibilities of supervisory appraisers and trainee
appraisers.
(a) After January 1, 2008, a trainee real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed at
least 75 hours of prelicense courses approved by the commissioner.
(b) After January 1, 2008, a licensed real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed
at least 150 hours of prelicense courses approved by the commissioner All qualifying
education must be completed within the five-year period prior to the date of submission of
a trainee real property appraiser license application.

    Sec. 20. Minnesota Statutes 2012, section 82B.13, is amended by adding a subdivision
to read:
    Subd. 1a. Licensed real property appraiser. As a prerequisite for licensing as a
licensed real property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has successfully completed:
(1) at least 150 hours of prelicense courses approved by the commissioner. The
courses must consist of 75 hours of general real estate appraisal principles and the 15-hour
national USPAP course; and
(2) an associate degree or higher from an accredited college or university. In lieu of
the required degree, the applicant may present satisfactory documentation of successful
completion of 30 semester credit hours of instruction from an accredited college or
university.

    Sec. 21. Minnesota Statutes 2012, section 82B.13, subdivision 4, is amended to read:
    Subd. 4. Certified residential real property appraiser. As a prerequisite for
licensing as a certified residential real property appraiser, an applicant must present
evidence satisfactory to the commissioner that the person has successfully completed:
(1) at least 120 classroom 200 hours of prelicense courses approved by the
commissioner, with particular emphasis on the appraisal of one to four unit residential
properties. Fifteen of the 120 200 hours must include successful completion of the
15-hour national USPAP course.; and
After January 1, 2008, A certified residential real property appraiser applicant
must present evidence satisfactory to the commissioner that the person has successfully
completed:
(1) 200 hours of prelicense courses approved by the commissioner; and
(2) an associate a bachelor's degree or higher from an accredited college or
university. In lieu of the required degree the applicant may present satisfactory
documentation of completion of 21 semester credit hours from an accredited college or
university covering the following subject matter courses: English composition; principles
of economics (micro or macro); finance; algebra, geometry, or higher mathematics;
statistics; computer science; and business or real estate law. If an applicant has completed
education requirements before January 1, 2008, no college degree is required.
EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.

    Sec. 22. Minnesota Statutes 2012, section 82B.13, subdivision 5, is amended to read:
    Subd. 5. Certified general real property appraiser. As a prerequisite for
licensing as a certified general real property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has successfully completed:
(1) at least 180 classroom 300 hours of prelicense courses approved by the
commissioner, with particular emphasis on the appraisal of nonresidential properties.
Fifteen of the 180 300 hours must include successful completion of the 15-hour national
USPAP course.; and
After January 1, 2008, A certified general real property appraiser applicant must
present evidence satisfactory to the commissioner that the person has successfully
completed:
(1) 300 hours of prelicense courses approved by the commissioner; and
(2) a bachelor's degree or higher from an accredited college or university. In lieu of
the required degree the applicant may present satisfactory documentation of completion of
30 semester credit hours from an accredited college or university covering the following
subject matters courses: English composition; micro economics; macro economics;
finance; algebra, geometry, or higher mathematics; statistics; computer science; business
or real estate law; and two elective courses in accounting, geography, ag-economics,
business management, or real estate. If an applicant has complete education requirements
before January 1, 2008, no college degree is required.
EFFECTIVE DATE.This section is effective January 1, 2015, and applies to an
applicant for a license on or after that date.

    Sec. 23. Minnesota Statutes 2012, section 82B.13, subdivision 8, is amended to read:
    Subd. 8. Appraiser prelicense education. (a) Credit toward the qualifying
education requirements of this section may also be obtained via the completion of a
degree in real estate from an accredited degree-granting college or university approved
by the Association to Advance Collegiate Schools of Business, or a regional or national
accreditation agency recognized by the United States Secretary of Education, provided
that the college or university has had its curriculum reviewed and approved by the
Appraiser Qualifications Board.
    (b) Notwithstanding section 45.22, a college or university real estate course may be
approved retroactively by the commissioner for appraiser prelicense education credit if:
    (1) the course was offered by a college or university physically located in Minnesota;
    (2) the college or university was an approved education provider at the time the
course was offered; and
    (3) the commissioner's approval is made to the same extent in terms of courses and
hours and with the same time limits as those specified by the Appraiser Qualifications
Board.

    Sec. 24. Minnesota Statutes 2012, section 216.17, subdivision 2, is amended to read:
    Subd. 2. Service of notice, order, or other document from commission. Service of
all notices, orders, and other documents by the commission may be made by mail, personal
delivery, or electronic service upon any person or firm, or upon the president, general
manager, or other proper executive officer of any corporation interested. If any party has
appeared by attorney, such service must be made upon the attorney. Notwithstanding
section 14.62, orders and decisions may be served by mail, by personal delivery, or by
electronic service. The commission may provide electronic service to any person who has
provided an electronic address to the commission for service purposes. For purposes of this
section, the term "person" includes a natural person or an organization, whether for profit
or not for profit. Regulated utilities and state agencies must provide an electronic address
for electronic service purposes and must accept electronic service as official service.

    Sec. 25. Minnesota Statutes 2012, section 216.17, subdivision 4, is amended to read:
    Subd. 4. Service by a party, participant, or other interested person. When an
applicable statute or commission rule requires service of a filing or other document by a
party, participant, or other interested person upon persons on a service list maintained by the
commission, service may be made by personal delivery, mail, or electronic service, except
that electronic service may only be made upon persons on the official service list who have
previously agreed in writing to accept electronic service at an electronic address provided
to the commission for electronic service purposes. This section does not apply to the extent
another provision of this chapter or chapter 216A requires a specific method of service.
Regulated utilities and state agencies must provide an electronic address to the commission
for electronic service purposes and agree to accept electronic service as official service.

    Sec. 26. Minnesota Statutes 2012, section 216B.18, is amended to read:
216B.18 SERVICE OF NOTICE.
Service of notice of all hearings, investigations, and proceedings pending before
the commission and of complaints, reports, orders, and other documents must be
made personally, by electronic service as provided in section 216.17, or by mail as the
commission may direct. Regulated utilities and state agencies must provide an electronic
address to the commission for electronic service purposes and agree to accept electronic
service as official service.

    Sec. 27. Minnesota Statutes 2012, section 299C.40, subdivision 1, is amended to read:
    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
section.
(b) "CIBRS" means the Comprehensive Incident-Based Reporting System, located
in the Department of Public Safety and managed by the Bureau of Criminal Apprehension.
A reference in this section to "CIBRS" includes the Bureau of Criminal Apprehension.
(c) "Law enforcement agency" means a Minnesota municipal police department,
the Metropolitan Transit Police, the Metropolitan Airports Police, the University of
Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit,
a Minnesota county sheriff's department, the Enforcement Division of the Department of
Natural Resources, the Commerce Fraud Bureau, the Bureau of Criminal Apprehension,
or the Minnesota State Patrol.

    Sec. 28. Minnesota Statutes 2012, section 239.761, subdivision 8, as amended by 2013
House File 634, section 7, if enacted, is amended to read:
    Subd. 8. Diesel fuel oil. (a) When diesel fuel oil is not blended with biodiesel, it
must comply with ASTM specification D975-12a.
(b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel
component must comply with ASTM specification D975-12a and the biodiesel component
must comply with ASTM specification D675-11b D6751-11b.
EFFECTIVE DATE.This section is effective on the same date that Minnesota
Statutes 2012, section 239.761, subdivision 8, as amended by 2013 House File 634,
section 7, if enacted, is effective.

    Sec. 29. REVISOR INSTRUCTION.
Consistent with the name change in section 1, the revisor of statutes shall change
the term "Division of Insurance Fraud Prevention" or similar term to "Commerce Fraud
Bureau" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.

    Sec. 30. REPEALER.
    Subdivision 1. Petroleum tank release cleanup; PVC piping at residential
locations. Minnesota Statutes 2012, section 115C.09, subdivision 3k, is repealed.
    Subd. 2. Agricultural storage tank removal. Laws 2000, chapter 488, article
3, section 37, is repealed.
    Subd. 3. Prior appraiser qualification requirements. Minnesota Statutes 2012,
section 82B.095, subdivision 1, is repealed.

    Sec. 31. EFFECTIVE DATE; APPLICATION.
Sections 9 to 13 are effective January 1, 2014, and apply to plans of reparation
security issued or renewed on or after that date.