Real estate appraisers; disciplinary sanction matrix established.

2025-2026 Regular Session Introduced by John Huot and 1 co-sponsor

Establishes a nonbinding reference to the Appraisal Foundation’s Disciplinary Action Matrix for sanctions, but lets Minnesota’s Commerce Department set penalties based on each case

HF indefinitely postponed

#realestate

Purpose and intent

HF 2400 proposes to establish a formal disciplinary sanction matrix for real estate appraisers in Minnesota. The bill directs the Minnesota Department of Commerce (the “commissioner”) to use a structured framework when determining sanctions for appraisers who violate applicable statutes or rules. The key innovation is to reference, as nonbinding guidance, the current version of the Voluntary Disciplinary Action Matrix published by the Appraisal Foundation, while preserving discretionary authority to tailor sanctions to the facts of each case.

Key provisions and changes

Section 82B.26 (Disciplinary Sanction Matrix):

The commissioner may consider the Appraisal Foundation’s Voluntary Disciplinary Action Matrix as nonbinding guidance when establishing sanctions.
The commissioner retains full discretion to determine the appropriate sanction based on the specific circumstances of each case, even if the guidance matrix suggests different sanctions.

No other substantive changes to appraiser law are listed in the text provided. The primary change is the integration of a nonbinding reference framework with retained individualized decision-making.

Who/what would be affected

Real estate appraisers practicing in Minnesota.

The Minnesota Department of Commerce, which administers real estate appraiser licensing and enforcement.

Potential applicants or licensees facing disciplinary action, as their sanctions would be guided—though not bound—by the Appraisal Foundation’s matrix.

Procedural and timeline aspects

Legislative history:

Introduced and read for the first time on March 17, 2025, and referred to the Committee on Commerce Finance and Policy.
On April 7, 2026, a committee report was adopted with amendments and the bill was placed on the General Register.
On April 28, 2026, the bill was referred to the Chief Clerk for comparison with S. F. No. 2814 (a Senate companion).

The bill proposes a statutory change to Minnesota Statutes, chapter 82B, affecting disciplinary processes going forward, with a note that the guidance is nonbinding.

Practical impact and considerations

The guidance from the Appraisal Foundation’s matrix would serve as a reference point but not constrain Minnesota’s enforcement decisions. This can provide consistency and transparency in sanctions while preserving case-specific flexibility.

Stakeholders (appraisers, employers, and licensure boards) may anticipate that disciplinary outcomes could align with widely recognized industry standards but remain subject to Minnesota’s unique facts and enforcement priorities.

The bill emphasizes professional accountability while avoiding rigid, one-size-fits-all sanctions.

If you’d like, I can provide a side-by-side comparison with the current disciplinary framework or summarize potential scenarios illustrating how the discretionary approach might apply in practice.

Bill