Commerce bill tweaks laws on real estate, car sales, appraisers

A new law makes technical changes to various provisions governing or administered by the Department of Commerce.

Sponsored by Sen. Mark Koran (R-North Branch) and Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie), it makes changes to chapters governing motor vehicle installment sales, insurance, real estate brokers, appraisal management companies and credit service organizations.

It also adopts National Association of Insurance Commissioners changes to the model act, including HMOs as members of the association, broadening the assessment base for long-term care insolvencies and splitting the assessment 50/50 between the life and health insurance industries. This article took effect May 13, 2020.

The remaining provisions, effective Aug. 1, 2020:

• clarify the asset base for calculation of required guaranty deposit for a national bank acting as a fiduciary;

• clarify that motor vehicle retail installment contracts must be entered into in Minnesota in order for a person to be regulated as a sales finance company;

• require license fees to be calculated by reference to every branch of the licensee, not just branches maintained in this state;

• modify the definition of residential real estate;

• clarify that scheduling orders and documents related to scheduling conferences must be given confidential treatment;

• clarify that amendments to articles of incorporation for an insurance corporation are effective upon the commissioner’s approval;

• make technical and clarifying changes in statute governing mergers of insurance corporations;

• clarify that a disclosure must be provided before negotiating or consummating a real estate transaction;

• modify owner requirement standards for an appraisal management company;

• require a credit service organization to update their registration within 30 days of a change; and

• modify the disclosure required from a credit services organization.

HF4055/SF4091*/CH80

SF4091* / HF4055 / CH80