Bill Text: MN SF650 | 2013-2014 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance fraud prevention division renamed commerce fraud bureau; miscellaneous commerce department provisions modifications

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-05-17 - HF substituted on General Orders HF647 [SF650 Detail]

Download: Minnesota-2013-SF650-Introduced.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;
regulating certain stop loss coverage; modifying risk-based capital requirements
for certain insurers; regulating real estate appraiser licenses; modifying service
requests in connection with Public Utility Commission matters; repealing certain
unnecessary laws;amending Minnesota Statutes 2012, sections 45.0135; 45.027,
subdivision 2; 45.307; 45.43; 60A.235, subdivision 3, by adding a subdivision;
60A.62, subdivision 1; 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; 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.

    Sec. 5. [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. 6. [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. 7. Minnesota Statutes 2012, section 60A.235, subdivision 3, is amended to read:
    Subd. 3. Health plan policies issued as stop loss coverage. (a) An insurance
company or health carrier issuing or renewing an insurance policy or other evidence of
coverage, that provides coverage to an employer for health care expenses incurred under
an employer-sponsored plan provided to the employer's employees, retired employees,
or their dependents, shall issue the policy or evidence of coverage as a health plan if the
policy or evidence of coverage:
(1) has a specific attachment point for claims incurred per individual that is lower
than $20,000 $60,000; or
(2) has an aggregate attachment point, for groups of 50 or fewer that meet the
definition of a small employer as defined in section 62L.02, subdivision 26, that is lower
than the greater of:
(i) $4,000 times the number of group members;
(ii) (i) 120 percent of expected claims; or
(iii) $20,000 (ii) $60,000; or
(3) has an aggregate attachment point, for groups of 51 or more that do not meet
the definition of a small employer as defined in section 62L.02, subdivision 26, that is
lower than 110 percent of expected claims.
(b) An insurer shall determine the number of persons in a group, for the purposes
of this section, on a consistent basis, at least annually. Where the insurance policy or
evidence of coverage applies to a contract period of more than one year, the dollar
amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length
of the contract period expressed in years.
(c) The commissioner may adjust the constant dollar amounts provided in paragraph
(a), clauses (1), (2), and (3), on January 1 of any year, based upon changes in the medical
component of the Consumer Price Index (CPI). Adjustments must be in increments of
$100 and must not be made unless at least that amount of adjustment is required. The
commissioner shall publish any change in these dollar amounts at least six months before
their effective date.
(d) A policy or evidence of coverage issued by an insurance company or health
carrier that provides direct coverage of health care expenses of an individual including a
policy or evidence of coverage administered on a group basis is a health plan regardless of
whether the policy or evidence of coverage is denominated as stop loss coverage.

    Sec. 8. Minnesota Statutes 2012, section 60A.235, is amended by adding a subdivision
to read:
    Subd. 3b. Certain stop loss policies; nonapplication. The requirements of
subdivision 3 do not apply to a stop loss policy issued or renewed to an employer that had
stop loss insurance in place prior to July 1, 2012, to the extent that the employer continues
to maintain stop loss insurance that complies with the following requirements:
(1) if specific coverage is included under the stop loss insurance, has a specific
attachment point for claims incurred per individual that is at least $20,000; and
(2) if aggregate coverage is included under the stop loss insurance, has an aggregate
attachment point, for groups that meet the definition of a small employer as defined in
section 62L.02, subdivision 26, that is no lower than the greater of:
(i) $4,000 times the number of group members;
(ii) 120 percent of expected claims; or
(iii) $20,000; and
(3) for groups that meet the definition of small employer as defined in section 62L.02,
subdivision 26, includes a claims settlement period in compliance with section 60A.236.

    Sec. 9. 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. 10. 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 must treat and maintain an applicant's fingerprints and any
criminal history record information obtained under this chapter as confidential and must
apply security measures consistent with the standards specified by the Criminal Justice
Information Services Division of the Federal Bureau of Investigation for the electronic
storage of fingerprints and necessary identifying information. The commissioner must
limit the use of records solely to the purposes authorized in this chapter. The fingerprints
and any criminal history record information must not be subject to subpoena, other than
one issued in a criminal action or investigation.
(d) The commissioner may receive criminal history record information from another
government agency in lieu of the Minnesota Bureau of Criminal Apprehension.
(e) 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. 11. 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. 12. 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. 13. 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. 14. 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. 15. 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. 16. 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. 17. 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. 18. 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. 19. 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. 20. 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. 21. 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. 22. 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. 23. 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. 24. 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.