Engrossments
Introduction		Posted on 02/24/2010
1st Engrossment		Posted on 03/23/2010
2nd Engrossment		Posted on 05/08/2010
3rd Engrossment		Posted on 05/16/2010

Unofficial Engrossments
1st Unofficial Engrossment		Posted on 05/14/2010

Conference Committee Reports
CCR-SF2839		Posted on 05/14/2010

ARTICLE 1

MISCELLANEOUS COMMERCE PROVISIONS

Section 1.

Minnesota Statutes 2008, section 45.0112, is amended to read:

45.0112 STREET new text begin AND E-MAIL new text end ADDRESSES REQUIRED.

Licensees or applicants for licenses issued by the commissioner shall provide to the
commissioner a residence telephone number, a street address where the licensee actually
resides, deleted text begin anddeleted text end a street address where the licensee's business is physically locatednew text begin , and a
current e-mail address for business usenew text end . deleted text begin A post office box address is not sufficient to
satisfy this requirement.deleted text end The individual shall notify the department of any change in street
addressnew text begin , e-mail address for business use,new text end or residence telephone number within ten days.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 45.027, subdivision 1, is
amended to read:

Subdivision 1.

General powers.

In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:

(1) make public or private investigations within or without this state as the
commissioner considers necessary to determine whether any person has violated or is
about to violate any law, rule, or order related to the duties and responsibilities entrusted
to the commissioner;

(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the
matter being investigated;

(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;

(4) conduct investigations and hold hearings for the purpose of compiling
information related to the duties and responsibilities entrusted to the commissioner;

(5) examine the books, accounts, records, and files of every licensee, and of every
person who is engaged in any activity regulated; the commissioner or a designated
representative shall have free access during normal business hours to the offices and
places of business of the person, and to all books, accounts, papers, records, files, safes,
and vaults maintained in the place of business;

(6) publish information which is contained in any order issued by the commissioner;

(7) require any person subject to duties and responsibilities entrusted to the
commissioner, to report all sales or transactions that are regulated. The reports must
be made within ten days after the commissioner has ordered the report. The report is
accessible only to the respondent and other governmental agencies unless otherwise
ordered by a court of competent jurisdiction; and

(8) assess a deleted text begin licenseedeleted text end new text begin natural person or entity subject to the jurisdiction of the
commissionernew text end the necessary expenses of the investigation performed by the department
when an investigation is made by order of the commissioner. The cost of the investigation
shall be determined by the commissioner and is based on the salary cost of investigators
or assistants and at an average rate per day or fraction thereof so as to provide for the
total cost of the investigation. All money collected must be deposited into the general
fund. A natural person licensed under chapter 60K or 82 shall not be charged costs of
an investigation if the investigation results in no finding of a violation.new text begin This clause
does not apply to a natural person or entity already subject to the assessment provisions
of sections 60A.03 and 60A.031.
new text end

Sec. 3.

Minnesota Statutes 2009 Supplement, section 45.30, subdivision 4, is amended
to read:

Subd. 4.

Credit earned.

(a) Upon completion of approved courses, students must
earn one hour of continuing education credit for each hour approved by the commissioner.
Continuing education courses must be attended in their entirety in order to receive credit
for the number of approved hours.

(b) Qualified instructors will earn three hours of continuing education credit for
each classroom hour of approved instruction that they deliver (1) independently, or (2)
as part of a team presentation in a course of two hours or less, if they attend the course
in its entirety. new text begin For licensees other than appraisers, new text end no more than half of the continuing
education hours required for renewal of a license may be earned as a qualified instructor at
the rate of three hours of continuing education credit for each classroom hour of approved
instruction. new text begin For licensed appraisers, no more than one-half of the continuing education
hours required for renewal of a license may be earned as a qualified instructor. new text end No credit
will be earned if the licensee has previously obtained credit for the same course as either
a student or instructor during the same licensing period.

new text begin (c) A licensee must not receive credit for more than eight hours of continuing
education in one day.
new text end

Sec. 4.

Minnesota Statutes 2008, section 60A.031, subdivision 4, is amended to read:

Subd. 4.

Examination report; foreign and domestic companies.

(a) The
commissioner shall make a full and true report of every examination conducted pursuant
to this chapter, which shall include (1) a statement of findings of fact relating to the
financial status and other matters ascertained from the books, papers, records, documents,
and other evidence obtained by investigation and examination or ascertained from
the testimony of officers, agents, or other persons examined under oath concerning the
business, affairs, assets, obligations, ability to fulfill obligations, and compliance with
all the provisions of the law of the company, applicant, organization, or person subject
to this chapter and (2) a summary of important points noted in the report, conclusions,
recommendations and suggestions as may reasonably be warranted from the facts so
ascertained in the examinations. The report of examination shall be verified by the oath
of the examiner in charge thereof, and shall be prima facie evidence in any action or
proceedings in the name of the state against the company, applicant, organization, or
person upon the facts stated therein.

(b) No later than 60 days following completion of the examination, the examiner
in charge shall file with the department a verified written report of examination under
oath. Upon receipt of the verified report, the department shall transmit the report to the
company examined, together with a notice which provides the company examined with a
reasonable opportunity of not more than 30 days to make a written submission or rebuttal
with respect to matters contained in the examination report.

(c) Within 30 days of the end of the period allowed for the receipt of written
submissions or rebuttals, the commissioner shall fully consider and review the report,
together with the written submissions or rebuttals and the relevant portions of the
examiner's workpapers and enter an order:

(1) adopting the examination report as filed or with modification or corrections. If
the examination report reveals that the company is operating in violation of any law, rule,
or prior order of the commissioner, the commissioner may order the company to take any
action the commissioner considers necessary and appropriate to cure the violation;

(2) rejecting the examination report with directions to the examiners to reopen the
examination for purposes of obtaining additional data, documentation, or information,
and refiling the report as required under paragraph (b); or

(3) calling for an investigatory hearing with no less than 20 days' notice to the
company for purposes of obtaining additional documentation, data, information, and
testimony.

(d)(1) All orders entered under paragraph (c), clause (1), must be accompanied by
findings and conclusions resulting from the commissioner's consideration and review of
the examination report, relevant examiner workpapers, and any written submissions or
rebuttals. The order is a final administrative decision and may be appealed as provided
under chapter 14. The order must be served upon the company by certified mail, together
with a copy of the adopted examination report. Within 30 days of the issuance of the
adopted report, the company shall file affidavits executed by each of its directors stating
under oath that they have received a copy of the adopted report and related orders.

(2) A hearing conducted under paragraph (c), clause (3), by the commissioner or
authorized representative, must be conducted as a nonadversarial confidential investigatory
proceeding as necessary for the resolution of inconsistencies, discrepancies, or disputed
issues apparent upon the face of the filed examination report or raised by or as a result of
the commissioner's review of relevant workpapers or by the written submission or rebuttal
of the company. Within 20 days of the conclusion of the hearing, the commissioner shall
enter an order as required under paragraph (c), clause (1).

(3) The commissioner shall not appoint an examiner as an authorized representative
to conduct the hearing. The hearing must proceed expeditiously. Discovery by the
company is limited to the examiner's workpapers which tend to substantiate assertions in a
written submission or rebuttal. The commissioner or the commissioner's representative
may issue subpoenas for the attendance of witnesses or the production of documents
considered relevant to the investigation whether under the control of the department, the
company, or other persons. The documents produced must be included in the record.
Testimony taken by the commissioner or the commissioner's representative must be under
oath and preserved for the record.

This section does not require the department to disclose information or records
which would indicate or show the existence or content of an investigation or activity of a
criminal justice agency.

(4) The hearing must proceed with the commissioner or the commissioner's
representative posing questions to the persons subpoenaed. Thereafter, the company and
the department may present testimony relevant to the investigation. Cross-examination
may be conducted only by the commissioner or the commissioner's representative. The
company and the department shall be permitted to make closing statements and may
be represented by counsel of their choice.

(e)(1) Upon the adoption of the examination report under paragraph (c), clause (1),
the commissioner shall continue to hold the content of the examination report as private
and confidential information for a period of 30 days except as otherwise provided in
paragraph (b). Thereafter, the commissioner may open the report for public inspection if a
court of competent jurisdiction has not stayed its publication.

(2) Nothing contained in this subdivision prevents or shall be construed as
prohibiting the commissioner from disclosing the content of an examination report,
preliminary examination report or results, or any matter relating to the reports, to the
Commerce Department or the insurance department of another state or country, or to law
enforcement officials of this or another state or agency of the federal government at any
time, if the agency or office receiving the report or matters relating to the report agrees in
writing to hold it confidential and in a manner consistent with this subdivision.

(3) If the commissioner determines that regulatory action is appropriate as a result of
an examination, the commissioner may initiate proceedings or actions as provided by law.

(f) All working papers, recorded information, documents and copies thereof
produced by, obtained by, or disclosed to the commissioner or any other person in the
course of an examination made under this subdivisionnew text begin , or in the course of market analysis,
new text end must be given confidential treatment and are not subject to subpoena and may not be made
public by the commissioner or any other person, except to the extent provided in paragraph
(e). Access may also be granted to the National Association of Insurance Commissionersnew text begin
(NAIC)new text end , the deleted text begin National Association of Securities Dealersdeleted text end new text begin Financial Industry Regulatory
Authoritynew text end , and any national securities association registered under the Securities Exchange
Act of 1934. The parties must agree in writing prior to receiving the information to
provide to it the same confidential treatment as required by this section, unless the prior
written consent of the company to which it pertains has been obtained.new text begin For purposes of
this section, "market analysis" means a process whereby market conduct surveillance
personnel collect and analyze information from filed schedules, surveys, required reports,
such as the NAIC Market Conduct Annual Statement, or other sources in order to develop
a baseline profile of an insurer, review the operation or activity of an insurer, or to
identify patterns or practices of insurers licensed to do business in this state that deviate
significantly from the norm or that may pose a potential risk to the insurance consumer.
new text end

Sec. 5.

Minnesota Statutes 2008, section 60A.084, is amended to read:

60A.084 NOTIFICATION ON GROUP POLICIES.

An employer providing life or health benefits may not change benefits, limit
coverage, or otherwise restrict participation until the certificate holder or enrollee has
been notified of any changes, limitations, or restrictions. Notice in a format which
meets the requirements of the deleted text begin Employee Retirement Income Security Act, United States
Code Annotated, title 29, sections 1001 to 1461,deleted text end new text begin United States Department of Labor new text end is
satisfactory for compliance with this section.

Sec. 6.

Minnesota Statutes 2008, section 60A.204, is amended to read:

60A.204 deleted text begin ADDITIONAL CHARGES ANDdeleted text end FEESnew text begin AND COMMISSIONSnew text end .

deleted text begin Subdivision 1. deleted text end

deleted text begin Placement fees. deleted text end

deleted text begin A surplus lines licensee may charge, in addition to
the premium charged by an eligible or ineligible surplus lines insurer, a fee to cover the
cost incurred in the placement of the policy which exceeds $25, but only to the extent that
the actual additional cost incurred for services performed by persons or entities unrelated
to the licensee exceeds that amount.
deleted text end

deleted text begin Subd. 2. deleted text end

deleted text begin Regulation of fees. deleted text end

A new text begin surplus lines licensee may charge a new text end fee deleted text begin charged
pursuant to subdivision 1 shalldeleted text end new text begin and commission, in addition to the premium, that isnew text end not deleted text begin bedeleted text end
excessive or discriminatory. The licensee shall maintain complete documentation of all
fees new text begin and commissions new text end charged. deleted text begin Those fees shall not be included as part of the premium for
purposes of the computation of the premium taxes.
deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Commission charges. deleted text end

deleted text begin Notwithstanding the provisions of subdivision 1, a
licensee may add a commission charge if the insurer quotes a rate net of commission and
the commission is not excessive or discriminatory.
deleted text end

Sec. 7.

Minnesota Statutes 2008, section 60A.36, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Third-party notices. new text end

new text begin An insurer shall provide notice to a third party if:
new text end

new text begin (1) the policyholder has, separately from the certificate, notified the insurer of the
identity of the third party; and
new text end

new text begin (2) the third party is a licensing authority authorized by statute to receive the notice or
a state, city, or county governmental unit on whose behalf the insured is providing services.
new text end

Sec. 8.

Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 1, is
amended to read:

Subdivision 1.

Issuance.

A licensed insurer or insurance producer may provide to a
third party a certificate of insurance which documents insurance coverage. deleted text begin The purpose ofdeleted text end new text begin
For the purposes of this chapter,new text end a certificate of insurance is deleted text begin to providedeleted text end new text begin a document that
providesnew text end evidence of new text begin property or liability new text end insurance coverage and the amount of insurance
issuednew text begin , and does not convey any contractual rights to the certificate holdernew text end .

Sec. 9.

Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 4, is
amended to read:

Subd. 4.

Cancellation notice.

A certificate provided to a third party must not
provide for notice of cancellation that exceeds the statutory notice of cancellation provided
to the policyholdernew text begin or a period of notice specified in the policynew text end .

Sec. 10.

Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 5, is
amended to read:

Subd. 5.

Filing.

An insurer not using the standard ACORD or ISO form "Certificate
of Insurance" shall file with the commissioner, prior to its use, deleted text begin the form of certificate or
memorandum of insurance coverage that will be useddeleted text end new text begin a similar alternative "Certificate
of Insurance" covering the same information for usenew text end by the insurer. Filed forms may not
be amended at the request of a third party.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 11.

Minnesota Statutes 2009 Supplement, section 60A.9572, subdivision 6,
is amended to read:

Subd. 6.

Disclosures.

The applicant shall provide information on forms required
by the commissioner. The commissioner shall have authority, at any time, to require
the applicant to fully disclose the identity of all stockholders who hold more than ten
percent of the shares of the company, partners, officers, members, and employees, and
the commissioner may, in the exercise of the commissioner's discretion, refuse to issue a
license in the name of a legal entity if not satisfied that any officer, employee, stockholder,
partner, or member new text begin of the legal entity who new text end may materially influence the applicant's
conduct meets the standards of sections 60A.957 to 60A.9585.

Sec. 12.

Minnesota Statutes 2008, section 60K.31, subdivision 10, is amended to read:

Subd. 10.

Limited lines insurance.

"Limited lines insurance" means those lines
of insurance defined in section 60K.38, subdivision 1, paragraph (c), or any other line of
insurance that the commissioner considers necessary to recognize for the purposes of
complying with section 60K.39, subdivision deleted text begin 5deleted text end new text begin 6new text end .

Sec. 13.

Minnesota Statutes 2008, section 61A.092, subdivision 3, is amended to read:

Subd. 3.

Notice of options.

Upon termination of or layoff from employment
of a covered employee, the employer shall inform the employee new text begin within 14 days after
termination or layoff new text end of:

(1) the employee's right to elect to continue the coverage;

(2) the amount the employee must pay monthly to the employer to retain the
coverage;

(3) the manner in which and the office of the employer to which the payment to
the employer must be made; and

(4) the time by which the payments to the employer must be made to retain coverage.

The employee has 60 days within which to elect coverage. The 60-day period shall
begin to run on the date coverage would otherwise terminate or on the date upon which
notice of the right to coverage is received, whichever is later.

If the covered employee or covered dependent dies during the 60-day election period
and before the covered employee makes an election to continue or reject continuation,
then the covered employee will be considered to have elected continuation of coverage.
The beneficiary previously selected by the former employee or covered dependent would
then be entitled to a death benefit equal to the amount of insurance that could have been
continued less any unpaid premium owing as of the date of death.

Notice must be in writing and sent by first class mail to the employee's last known
address which the employee has provided to the employer.

A notice in substantially the following form is sufficient: "As a terminated or laid
off employee, the law authorizes you to maintain your group insurance benefits, in an
amount equal to the amount of insurance in effect on the date you terminated or were laid
off from employment, for a period of up to 18 months. To do so, you must notify your
former employer within 60 days of your receipt of this notice that you intend to retain this
coverage and must make a monthly payment of $............ at ............. by the ............. of
each month."

Sec. 14.

Minnesota Statutes 2008, section 62A.046, subdivision 6, is amended to read:

Subd. 6.

Coordination of benefits.

Insurers, vendors of risk management
services, nonprofit health service plan corporations, fraternals, and health maintenance
organizations may coordinate benefits to prohibit greater than 100 percent coverage when
an insured, subscriber, or enrollee is covered by both an individual and a group contract
providing coverage for hospital and medical treatment or expenses. Benefits coordinated
under this paragraph must provide for 100 percent coverage of an insured, subscriber,
or enrollee. To the extent appropriate, all coordination of benefits provisions currently
applicable by law or rule to insurers, vendors of risk management services, nonprofit
health service plan corporations, fraternals, and health maintenance organizations, shall
apply to coordination of benefits between individual and group contractsdeleted text begin , except that the
group contract shall always be the primary plandeleted text end . new text begin Notwithstanding the definition of "plan"
in Minnesota Rules, part 2742.0200, subpart 2, and in Minnesota Rules, part 4685.0910,
subpart 7, an individual contract must coordinate benefits with a group contract under this
subdivision consistent with applicable coordination of benefit rules. When a covered
person's other coverage is Medicare or TRICARE, a health plan company must determine
primacy and coordinate benefits in accordance with the Medicare Secondary Payor or
TRICARE provisions of federal law. new text end This paragraph does not apply to specified accident,
hospital indemnity, specified disease, or other limited benefit insurance policies.

Sec. 15.

Minnesota Statutes 2008, section 62A.046, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin High-deductible health plans. new text end

new text begin If a health carrier is advised by a covered
person that all health plans covering the person are high-deductible health plans and
the person intends to contribute to a health savings account established in accordance
with section 223 of the Internal Revenue Code of 1986, the primary high-deductible
health plan's deductible is not an allowable expense, except for any health care expense
incurred that may not be subject to the deductible as described in section 223(c)(2)(C) of
the Internal Revenue Code of 1986.
new text end

Sec. 16.

Minnesota Statutes 2008, section 62A.17, subdivision 5, is amended to read:

Subd. 5.

Notice of options.

Upon the termination of or lay off from employment of
an eligible employee, the employer shall inform the employee within deleted text begin tendeleted text end new text begin 14 new text end days after
termination or lay off of:

deleted text begin (a)deleted text end new text begin (1)new text end the right to elect to continue the coverage;

deleted text begin (b)deleted text end new text begin (2)new text end the amount the employee must pay monthly to the employer to retain the
coverage;

deleted text begin (c)deleted text end new text begin (3)new text end the manner in which and the office of the employer to which the payment to
the employer must be made; and

deleted text begin (d)deleted text end new text begin (4)new text end the time by which the payments to the employer must be made to retain
coverage.

If the policy, contract, or health care plan is administered by a trust, the employer is
relieved of the obligation imposed by clauses deleted text begin (a)deleted text end new text begin (1)new text end to deleted text begin (d)deleted text end new text begin (4)new text end . The trust shall inform the
employee of the information required by clauses deleted text begin (a)deleted text end new text begin (1)new text end to deleted text begin (d)deleted text end new text begin (4)new text end .

The employee shall have 60 days within which to elect coverage. The 60-day period
shall begin to run on the date plan coverage would otherwise terminate or on the date upon
which notice of the right to coverage is received, whichever is later.

Notice must be in writing and sent by first class mail to the employee's last known
address which the employee has provided the employer or trust.

A notice in substantially the following form shall be sufficient: "As a terminated or
laid off employee, the law authorizes you to maintain your group medical insurance for
a period of up to 18 months. To do so you must notify your former employer within 60
days of your receipt of this notice that you intend to retain this coverage and must make a
monthly payment of $.......... to ........... at .......... by the ............... of each month."

Sec. 17.

Minnesota Statutes 2009 Supplement, section 62A.3099, subdivision 18,
is amended to read:

Subd. 18.

Medicare supplement policy or certificate.

"Medicare supplement
policy or certificate" means a group or individual policy of accident and sickness insurance
or a subscriber contract of hospital and medical service associations or health maintenance
organizations, other than those policies or certificates covered by section 1833 of the
federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued
policy under a demonstration project specified under amendments to the federal Social
Security Act, which is advertised, marketed, or designed primarily as a supplement to
reimbursements under Medicare for the hospital, medical, or surgical expenses of persons
eligible for Medicare or as a supplement to Medicare Advantage plans established under
Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage
plans established under Medicare Part C, outpatient prescription drug plans established
under Medicare Part D, deleted text begin ordeleted text end any health care prepayment plan that provides benefits under an
agreement under section 1833(a)(1)(A) of the Social Security Actnew text begin , or any policy issued to
an employer or employers or to the trustee of a fund established by an employer where
only employees or retirees, and dependents of employees or retirees, are eligible for
coverage, or any policy issued to a labor union or similar employee organizationnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2008, section 62A.65, subdivision 2, is amended to read:

Subd. 2.

Guaranteed renewal.

No individual health plan may be offered, sold,
issued, or renewed to a Minnesota resident unless the health plan provides that the plan
is guaranteed renewable at a premium rate that does not take into account the claims
experience or any change in the health status of any covered person that occurred after
the initial issuance of the health plan to the person. The premium rate upon renewal
must also otherwise comply with this section. A health carrier must not refuse to renew
an individual health plan deleted text begin prior to enrollment in Medicare Parts A and Bdeleted text end , except for
nonpayment of premiums, fraud, or misrepresentation.

Sec. 19.

Minnesota Statutes 2008, section 62E.02, subdivision 15, is amended to read:

Subd. 15.

Medicare.

"Medicare" means deleted text begin part A and part B of the United States
Social Security Act, title XVIII, as amended, United States Code, title 42, sections 1394, et
seq.deleted text end new text begin the Health Insurance for the Aged Act, title XVIII of the Social Security Amendments
of 1965, United States Code, title 42, sections 1395 to 1395hhh, as amended, or title I,
part I, of Public Law 89-97, as amended.
new text end

Sec. 20.

Minnesota Statutes 2008, section 62E.14, subdivision 4c, is amended to read:

Subd. 4c.

Waiver of preexisting conditions for persons whose coverage is
terminated or who exceed the maximum lifetime benefit.

(a) A Minnesota resident
may enroll in the comprehensive health plan with a waiver of the preexisting condition
limitation described in subdivision 3 if that persons's application for coverage is received
by the writing carrier no later than 90 days after termination of prior coverage and if the
termination is for reasons other than fraud or nonpayment of premiums.

For purposes of this paragraph, termination of prior coverage includes exceeding the
maximum lifetime benefit of existing coverage.

Coverage in the comprehensive health plan is effective on the date of termination
of prior coverage. The availability of conversion rights does not affect a person's rights
under this paragraph.

This section does not apply to prior coverage provided under policies designed
primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense
incurred basis, or policies providing only accident coverage.

(b) An eligible individual, as defined under new text begin the Health Insurance Portability and
Accountability Act (HIPAA), new text end United States Code, chapter 42, section 300gg-41(b) may
enroll in the comprehensive health insurance plan with a waiver of the preexisting
condition limitation described in subdivision 3 and a waiver of the evidence of rejection or
similar events described in subdivision 1, clause (c). The eligible individual must apply
for enrollment under this paragraph by submitting a substantially complete application
that is received by the writing carrier no later than 63 days after termination of prior
coverage, and coverage under the comprehensive health insurance plan is effective as
of the date of receipt of the complete application. The six-month durational residency
requirement provided in section 62E.02, subdivision 13, does not apply with respect to
eligibility for enrollment under this paragraph, but the applicant must be a Minnesota
resident as of the date that the application was received by the writing carrier. A person's
eligibility to enroll under this paragraph does not affect the person's eligibility to enroll
under any other provision.

(c) A qualifying individual, as defined in the Internal Revenue Code of 1986, section
35(e)(2)(B), who is eligible under the Federal Trade Act of 2002 for the deleted text begin creditdeleted text end new text begin Health
Coverage Tax Credit (HCTC)new text end for health insurance costs under the Internal Revenue Code
of 1986, section 35, may enroll in the comprehensive health insurance plan with a waiver
of the preexisting condition limitation described in subdivision 3, and without presenting
evidence of rejection or similar requirements described in subdivision 1, paragraph (c).
The six-month durational residency requirement provided in section 62E.02, subdivision
13, does not apply with respect to eligibility for enrollment under this paragraph, but the
applicant must be a Minnesota resident as of the date of application. A person's eligibility
to enroll under this paragraph does not affect the person's eligibility to enroll under any
other provision. This paragraph is intended solely to meet the minimum requirements
necessary to qualify the comprehensive health insurance plan as qualified health coverage
under the Internal Revenue Code of 1986, section 35(e)(2).

Sec. 21.

Minnesota Statutes 2008, section 62L.05, subdivision 4, is amended to read:

Subd. 4.

Benefits.

The medical services and supplies listed in this subdivision are
the benefits that must be covered by the small employer plans described in subdivisions
2 and 3. Benefits under this subdivision may be provided through the managed care
procedures practiced by health carriers:

(1) inpatient and outpatient hospital services, excluding services provided for the
diagnosis, care, or treatment of chemical dependency or a mental illness or condition,
other than those conditions specified in clauses (10)deleted text begin ,deleted text end new text begin andnew text end (11)deleted text begin , and (12)deleted text end . The health
care services required to be covered under this clause must also be covered if rendered
in a nonhospital environment, on the same basis as coverage provided for those same
treatments or services if rendered in a hospital, provided, however, that this sentence must
not be interpreted as expanding the types or extent of services covered;

(2) physician, chiropractor, and nurse practitioner services for the diagnosis or
treatment of illnesses, injuries, or conditions;

(3) diagnostic x-rays and laboratory tests;

(4) ground transportation provided by a licensed ambulance service to the nearest
facility qualified to treat the condition, or as otherwise required by the health carrier;

(5) services of a home health agency if the services qualify as reimbursable services
under Medicare;

(6) services of a private duty registered nurse if medically necessary, as determined
by the health carrier;

(7) the rental or purchase, as appropriate, of durable medical equipment, other than
eyeglasses and hearing aids, unless coverage is required under section 62Q.675;

(8) child health supervision services up to age 18, as defined in section 62A.047;

(9) maternity and prenatal care services, as defined in sections 62A.041 and 62A.047;

(10) inpatient hospital and outpatient services for the diagnosis and treatment of
certain mental illnesses or conditions, as defined by the International Classification of
Diseases-Clinical Modification (ICD-9-CM), seventh edition (1990) and as classified
as ICD-9 codes 295 to 299;new text begin and
new text end

deleted text begin (11) ten hours per year of outpatient mental health diagnosis or treatment for
illnesses or conditions not described in clause (10);
deleted text end

deleted text begin (12) 60 hours per year of outpatient treatment of chemical dependency; and
deleted text end

deleted text begin (13)deleted text end new text begin (11) new text end 50 percent of eligible charges for prescription drugs, up to a separate
annual maximum out-of-pocket expense of $1,000 per individual for prescription drugs,
and 100 percent of eligible charges thereafter.

Sec. 22.

Minnesota Statutes 2008, section 62S.24, subdivision 8, is amended to read:

Subd. 8.

Exchange for long-term care partnership policy; addition of policy
rider.

(a) deleted text begin If authorized by federal law or a federal waiver is granteddeleted text end With respect to the
long-term care partnership program referenced in section 256B.0571, issuers of long-term
care policies may voluntarily exchange a current long-term care insurance policy for a
long-term care partnership policy that meets the requirements of Public Law 109-171,
section 6021, after the effective date of the state plan amendment implementing the
partnership program in this state.new text begin The exchange may be in the form of: (1) an amendment
or rider; or (2) a disclosure statement indicating that the coverage is now partnership
qualified.
new text end

(b) deleted text begin If authorized by federal law or a federal waiver is granteddeleted text end With respect to the
long-term care partnership program referenced in section 256B.0571, deleted text begin allowingdeleted text end new text begin to allow new text end an
existing long-term care insurance policy to qualify as a partnership policy by addition of a
policy ridernew text begin or amendment or disclosure statementnew text end , the issuer of the policy is authorized to
add the rider new text begin or amendment or disclosure statement new text end to the policy after the effective date of
the state plan amendment implementing the partnership program in this state.

(c) The commissioner, in cooperation with the commissioner of human services,
shall pursue any federal law changes or waivers necessary to allow the implementation
of paragraphs (a) and (b).

Sec. 23.

Minnesota Statutes 2008, section 62S.266, subdivision 4, is amended to read:

Subd. 4.

Contingent benefit upon lapse.

(a) After rejection of the offer required
under subdivision 2, for individual and group policies without nonforfeiture benefits
issued after July 1, 2001, the insurer shall provide a contingent benefit upon lapse.

(b) If a group policyholder elects to make the nonforfeiture benefit an option to
the certificate holder, a certificate shall provide either the nonforfeiture benefit or the
contingent benefit upon lapse.

(c) The contingent benefit on lapse must be triggered every time an insurer increases
the premium rates to a level which results in a cumulative increase of the annual premium
equal to or exceeding the percentage of the insured's initial annual premium based on
the insured's issue age provided in this paragraph, and the policy or certificate lapses
within 120 days of the due date of the premium increase. Unless otherwise required,
policyholders shall be notified at least 30 days prior to the due date of the premium
reflecting the rate increase.

Triggers for a Substantial Premium Increase
	Issue Age	Percent Increase Over Initial Premium
	29 and Under	200
	30-34	190
	35-39	170
	40-44	150
	45-49	130
	50-54	110
	55-59	90
	60	70
	61	66
	62	62
	63	58
	64	54
	65	50
	66	48
	67	46
	68	44
	69	42
	70	40
	71	38
	72	36
	73	34
	74	32
	75	30
	76	28
	77	26
	78	24
	79	22
	80	20
	81	19
	82	18
	83	17
	84	16
	85	15
	86	14
	87	13
	88	12
	89	11
	90 and over	10

(d) A contingent benefit on lapse must also be triggered for policies with a fixed
or limited premium paying period every time an insurer increases the premium rates to a
level that results in a cumulative increase of the annual premium equal to or exceeding the
percentage of the insured's initial annual premium set forth below based on the insured's
issue age, the policy or certificate lapses within 120 days of the due date of the premium
so increased, and the ratio in paragraph deleted text begin (e)deleted text end new text begin (f)new text end , clause (2), is 40 percent or more. Unless
otherwise required, policyholders shall be notified at least 30 days prior to the due date of
the premium reflecting the rate increase.

Triggers for a Substantial Premium Increase
Issue Age	Percent Increase Over Initial Premium
Under 65	50%
65-80	30%
Over 80	10%

This provision shall be in addition to the contingent benefit provided by paragraph
(c) and where both are triggered, the benefit provided must be at the option of the insured.

(e) On or before the effective date of a substantial premium increase as defined in
paragraph (c), the insurer shall:

(1) offer to reduce policy benefits provided by the current coverage without the
requirement of additional underwriting so that required premium payments are not
increased;

(2) offer to convert the coverage to a paid-up status with a shortened benefit period
according to the terms of subdivision 5. This option may be elected at any time during the
120-day period referenced in paragraph (c); and

(3) notify the policyholder or certificate holder that a default or lapse at any time
during the 120-day period referenced in paragraph (c) is deemed to be the election of
the offer to convert in clause (2).

(f) On or before the effective date of a substantial premium increase as defined in
paragraph (d), the insurer shall:

(1) offer to reduce policy benefits provided by the current coverage without the
requirement of additional underwriting so that required premium payments are not
increased;

(2) offer to convert the coverage to a paid-up status where the amount payable for
each benefit is 90 percent of the amount payable in effect immediately prior to lapse times
the ratio of the number of completed months of paid premiums divided by the number of
months in the premium paying period. This option may be elected at any time during the
120-day period referenced in paragraph (d); and

(3) notify the policyholder or certificate holder that a default or lapse at any time
during the 120-day period referenced in paragraph (d) shall be deemed to be the election
of the offer to convert in clause (2) if the ratio is 40 percent or more.

Sec. 24.

Minnesota Statutes 2008, section 62S.29, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

An insurer or other entity marketing long-term care
insurance coverage in this state, directly or through its producers, shall:

(1) establish marketing procedures and agent training requirements to assure that
any marketing activities, including any comparison of policies by its agents or other
producers, are fair and accurate;

(2) establish marketing procedures to assure excessive insurance is not sold or issued;

(3) display prominently by type, stamp, or other appropriate means, on the first page
of the outline of coverage and policy, the following:

"Notice to buyer: This policy may not cover all of the costs associated with
long-term care incurred by the buyer during the period of coverage. The buyer is advised
to review carefully all policy limitations.";

(4) provide copies of the disclosure forms required in section 62S.081, subdivision
4, to the applicant;

(5) inquire and otherwise make every reasonable effort to identify whether a
prospective applicant or enrollee for long-term care insurance already has long-term care
insurance and the types and amounts of the insurance;

(6) establish auditable procedures for verifying compliance with this subdivision;

(7) if applicable, provide written notice to the prospective policyholder and
certificate holder, at solicitation, that a senior insurance counseling program approved by
the commissionernew text begin , the Senior LinkAge Line,new text end is available and the name, address, and
telephone number of the program;

(8) use the terms "noncancelable" or "level premium" only when the policy or
certificate conforms to section 62S.14; and

(9) provide an explanation of contingent benefit upon lapse provided for in section
62S.266.

Sec. 25.

Minnesota Statutes 2009 Supplement, section 65A.29, subdivision 13, is
amended to read:

Subd. 13.

Notice of possible cancellation.

(a) A written notice must be provided
to all applicants for homeowners' insurance, at the time the application is submitted,
containing the following language in bold print: "THE INSURER MAY ELECT
TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST deleted text begin 60deleted text end new text begin 59 new text end DAYS
FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS
NOT SPECIFICALLY PROHIBITED BY STATUTE."

(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent
may advise the applicant orally or in writing of its availability for review on the insurer's
Web site in lieu of providing a written notice, if the insurer advises the applicant of the
availability of a written notice upon the applicant's request. The insurer shall provide the
notice in writing if requested by the applicant. An oral notice shall be presumed delivered
if the agent or insurer makes a contemporaneous notation in the applicant's record of
the notice having been delivered or if the insurer or agent retains an audio recording of
the notification provided to the applicant.

Sec. 26.

Minnesota Statutes 2008, section 72A.08, subdivision 1, is amended to read:

Subdivision 1.

Rebate defined and prohibited.

No insurance company or
association, however constituted or entitled, including any affiliate of the insurance
company or association, doing business in this state, nor any officer, agent, subagent,
solicitor, employee, intermediary, or representative thereof, shall make or permit
any advantage or distinction in favor of any insured individual, firm, corporation, or
association with respect to the amount of premium named in, or to be paid on, any policy
of insurance, or shall offer to pay or allow directly or indirectly or by means of any device
or artifice, as inducements to insurance, any rebate or premium payable on the policy, or
any special favor or advantage in the dividends or other profit to accrue thereon, or any
valuable consideration or inducement not specified in the policy contract of insurance,
or give, sell, or purchase, offer to give, sell or purchase, as inducement to insure or in
connection therewith, any stocks, bonds, or other securities of any insurance company
or other corporation, association, partnership, or individual, or any dividends or profits
accrued or to accrue thereon, or anything of value, not specified in the policy. For
purposes of this section, "affiliate" has the meaning given in section 60D.15, subdivision 2.new text begin
Nothing in this section shall be construed as prohibiting a life insurer, property insurer, or
casualty insurer, or agents who are marketing life insurance, annuities, accident and health
insurance, property insurance, or casualty insurance, from providing to a policyholder or
prospective policyholder of life, property, or casualty insurance, any prizes, goods, wares,
merchandise, articles, or property of an aggregate value of $25 or less.new text end

Sec. 27.

Minnesota Statutes 2008, section 72A.20, subdivision 10, is amended to read:

Subd. 10.

Rebates.

Except as otherwise expressly provided by law, knowingly
permitting or offering to make or making any contract of life insurance, annuity, or
accident and health insurance, or agreement as to such contract, other than as plainly
expressed in the contract issued thereon, or paying or allowing or giving, or offering to
pay, allow, or give, directly or indirectly, as inducement to such insurance or annuity,
any rebate of premiums payable on the contract, or any special favor or advantage in
the dividends or other benefits thereon, or any valuable consideration or inducement
whatever not specified in the contract; or giving or selling or purchasing, or offering to
give, sell, or purchase, as inducement to such insurance or annuity, or in connection
therewith, any stocks, bonds, or other securities of any insurance company or other
corporation, association, or partnership, or any dividends or profits accrued thereon, or
anything of value whatsoever not specified in the contract, shall constitute an unfair
method of competition and an unfair and deceptive act or practice.new text begin Nothing in this section
shall be construed as prohibiting providing to a policyholder or prospective policyholder
of life insurance, annuities, or accident and health insurance, any prizes, goods, wares,
merchandise, articles, or property of an aggregate value of $25 or less.
new text end

Sec. 28.

Minnesota Statutes 2008, section 72A.20, subdivision 36, is amended to read:

Subd. 36.

Limitations on the use of credit information.

(a) No insurer or group of
affiliated insurers may reject, cancel, or nonrenew a policy of private passenger motor
vehicle insurance as defined under section 65B.01 or a policy of homeowner's insurance
as defined under section 65A.27, for any person in whole or in part on the basis of credit
information, including a credit reporting product known as a "credit score" or "insurance
score," without consideration and inclusion of any other applicable underwriting factor.

(b) If credit information, credit scoring, or insurance scoring is to be used in
underwriting, the insurer must disclose to the consumer that credit information will be
obtained and used as part of the insurance underwriting process.

(c) Insurance inquiries and non-consumer-initiated inquiries must not be used as part
of the credit scoring or insurance scoring process.

(d) If a credit score, insurance score, or other credit information relating to a
consumer, with respect to the types of insurance referred to in paragraph (a), is adversely
impacted or cannot be generated because of the absence of a credit history, the insurer
must exclude the use of credit as a factor in the decision to reject, cancel, or nonrenew.

(e) Insurers must upon the request of a policyholder reevaluate the policyholder's
score. Any change in premium resulting from the reevaluation must be effective upon
the renewal of the policy. An insurer is not required to reevaluate a policyholder's score
pursuant to this paragraph more than twice in any given calendar year.

(f) Insurers must upon request of the applicant or policyholder provide reasonable
underwriting exceptions based upon prior credit histories for persons whose credit
information is unduly influenced by expenses related to a catastrophic injury or illness,
temporary loss of employment, or the death of an immediate family member. The insurer
may require reasonable documentation of these events prior to granting an exception.

(g) A credit scoring or insurance scoring methodology must not be used by an
insurer if the credit scoring or insurance scoring methodology incorporates the gender,
race, nationality, or religion of an insured or applicant.

(h) Insurers that employ a credit scoring or insurance scoring system in underwriting
of coverage described in paragraph (a) must have on file with the commissioner:

(1) the insurer's credit scoring or insurance scoring methodology; and

(2) information that supports the insurer's use of a credit score or insurance score as
an underwriting criterion.

(i) Insurers described in paragraph deleted text begin (g)deleted text end new text begin (h) new text end shall file the required information with the
commissioner within 120 days of August 1, 2002, or prior to implementation of a credit
scoring or insurance scoring system by the insurer, if that date is later.

(j) Information provided by, or on behalf of, an insurer to the commissioner under
this subdivision is trade secret information under section 13.37.

Sec. 29.

Minnesota Statutes 2008, section 72A.20, subdivision 37, is amended to read:

Subd. 37.

Electronic transmission of required information.

new text begin (a) new text end A health carrier,
as defined in section 62A.011, subdivision 2, is not in violation of this chapter for
electronically transmitting or electronically making available information otherwise
required to be delivered in writing under chapters 62A to 62Q and 72A to an enrollee as
defined in section 62Q.01, subdivision 2a, new text begin or to a health plan as defined in paragraph (b),
new text end and with the requirements of those chapters if the following conditions are met:

(1) the health carrier informs the new text begin group policyholder or the new text end enrollee new text begin or both new text end that
electronic transmission or access is available and, at the discretion of the health carrier, the
enrollee is given one of the following options:

(i) electronic transmission or access will occur only if the new text begin group policyholder or the
new text end enrollee new text begin or both new text end affirmatively requests to the health carrier that the required information
be electronically transmitted or available and a record of that request is retained by the
health carrier; or

(ii) electronic transmission or access will automatically occur if the new text begin group
policyholder or the new text end enrollee new text begin or both new text end has not opted out of that manner of transmission by
request to the health carrier and requested that the information be provided in writing. If
the new text begin group policyholder or the new text end enrollee new text begin or both new text end opts out of electronic transmission, a record
of that request must be retained by the health carrier;

(2) the new text begin group policyholder or the new text end enrollee new text begin or both new text end is allowed to withdraw the request
at any time;

(3) if the information transmitted electronically contains individually identifiable
data, it must be transmitted to a secured mailbox. If the information made available
electronically contains individually identifiable data, it must be made available at a
password-protected secured Web site;

(4) the new text begin group policyholder or the new text end enrollee new text begin or both new text end is provided a customer service
number on the enrollee's member card that may be called to request a written copy of
the document; and

(5) the electronic transmission or electronic availability meets all other requirements
of this chapter including, but not limited to, size of the typeface and any required time
frames for distribution.

new text begin (b) For the purpose of this section, "health plan" means a health plan as defined
in section 62A.011 or a policy of accident and sickness insurance as defined in section
62A.01.
new text end

Sec. 30.

Minnesota Statutes 2008, section 72A.492, subdivision 2, is amended to read:

Subd. 2.

Covered persons.

The rights granted by sections 72A.49 to 72A.505
extend todeleted text begin :
deleted text end

deleted text begin (1)deleted text end a person who is deleted text begin a resident of this state and isdeleted text end the subject of information collected,
received, or maintained in connection with an insurance transactiondeleted text begin ;deleted text end and

deleted text begin (2) a persondeleted text end who is a resident of this state deleted text begin and engages in or seeks to engage in
an insurance transactiondeleted text end .

Sec. 31.

Minnesota Statutes 2008, section 72B.01, is amended to read:

72B.01 PURPOSE AND SCOPE.

It is the purpose of sections 72B.01 to 72B.14 to provide high quality service to
insureds and insurance claimants in the state of Minnesota by providing for well trained
adjusters and persons engaged in soliciting business for adjusters, who are qualified to deal
with the public in the interest of a fair resolution of insurance claims. deleted text begin Sections 72B.01 to
72B.14 shall apply to all adjusters, and adjusters' solicitors, except as specifically stated to
the contrary; but nothing in sections 72B.01 to 72B.14 shall apply to:
deleted text end

deleted text begin (a) An attorney at law who is licensed or otherwise allowed to practice law in this
state and who does not hold out to be an adjuster, or adjuster's solicitor.
deleted text end

deleted text begin (b) A licensed agent of an authorized insurer who adjusts losses for such insurer
solely under policies issued by the agent or the agent's agency or on which the agent is the
agent of record, provided the agent receives no extra compensation for such services.
deleted text end

deleted text begin (c) Personnel of township mutual companies.
deleted text end

deleted text begin (d) Adjusters for crop hail and farm windstorm damage claims who are on the staff
of companies covering such risks.
deleted text end

deleted text begin (e) Persons who process life insurance annuity contract or accident and health
insurance claims.
deleted text end

deleted text begin (f) Persons processing or adjusting wet marine or inland transportation claims or
losses.
deleted text end

Sec. 32.

Minnesota Statutes 2009 Supplement, section 72B.03, subdivision 2, is
amended to read:

Subd. 2.

Classes of licenses.

(a) Unless denied licensure pursuant to section 72B.08,
persons who have met the requirements of section deleted text begin 72B.04deleted text end new text begin 72B.041new text end must be issued an
adjuster license. There shall be four classes of licenses, as follows:

(1) independent adjuster's license;

(2) public adjuster's license;

(3) public adjuster solicitor's license; and

(4) crop hail adjuster's license.

(b) An independent adjuster and a public adjuster may qualify for a license in one or
more of the following lines of authority:

(1) property and casualty; or

(2) workers' compensation; or

(3) crop.

(c) Any person holding a license pursuant to this section is not required to hold any
other independent adjuster, public adjuster, insurance, or self-insurance administrator
license in this state pursuant to section 60A.23, subdivision 8, or any other provision,
provided that the person does not act as an adjuster with respect to life, health, or annuity
insurance, other than disability insurance.

(d) An adjuster license remains in effect unless probated, suspended, revoked, or
refused as long as the fee set forth in section deleted text begin 72B.04, subdivision 10deleted text end new text begin 72B.041, subdivision
9new text end , is paid and all other requirements for license renewal are met by the due date, otherwise,
the license expires.

(e) An adjuster whose license expires may, within 12 months of the renewal date,
be reissued an adjuster license upon receipt of the renewal request, as prescribed by the
commissioner; however, a penalty in the amount of double the unpaid renewal fee is
required to reissue the expired license.

(f) An adjuster who is unable to comply with license renewal procedures and
requirements due to military service, long-term medical disability, or some other
extenuating circumstance may request a waiver of same and a waiver of any examination
requirement, fine, or other sanction imposed for failure to comply with renewal procedures.

(g) An adjuster is subject to sections 72A.17 to 72A.32.

(h) The adjuster must inform the commissioner by any means acceptable of any
change in resident or business addresses for the home state or in legal name within 30
days of the change.

(i) The license must contain the licensee's name, address, and personal identification
number; the dates of issuance and expiration; and any other information the commissioner
deems necessary.

(j) In order to assist in the performance of the commissioner's duties, the
commissioner may contract with nongovernmental entities, including the National
Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any
ministerial functions related to licensing that the commissioner may deem appropriate,
including the collection of fees and data.

Sec. 33.

Minnesota Statutes 2009 Supplement, section 72B.045, subdivision 1, is
amended to read:

Subdivision 1.

Requirement.

An individual who holds annew text begin independent or publicnew text end
adjuster license and who is not exempt under this section must satisfactorily complete
a minimum of 24 hours of continuing education courses, of which three hours must
be in ethics, reported to the commissioner on a biennial basis in conjunction with the
individual's license renewal cycle.

Sec. 34.

Minnesota Statutes 2009 Supplement, section 72B.06, is amended to read:

72B.06 CATASTROPHE OR EMERGENCY SITUATIONS.

(a) deleted text begin In the event of a declared catastrophe or the occurrence of an emergency
situation,deleted text end new text begin For purposes of this chapter, a catastrophe exists when, due to a specific,
infrequent, and sudden natural or man-made disaster or phenomenon, there have arisen
losses to property in Minnesota that are covered by insurance, and the losses are so
numerous and severe that resolution of claims related to such covered property losses will
not occur expeditiously without the licensing of emergency independent adjusters due to
the magnitude of the catastrophic damage. A failure of claims to be resolved expeditiously
shall exist upon an insurer's filing with the department a written statement that one of the
following conditions exists: (1) the insurer expects to incur at least 500 claims as a result
of the event; or (2) the magnitude of the event is expected to generate twice the mean
number of claims for one month for the affected area. Such written statement may be
sent electronically to the commissioner. new text end An insurer must notify the commissioner via deleted text begin an
application fordeleted text end registration of each deleted text begin individualdeleted text end new text begin independent adjuster new text end not already licensed in
deleted text begin the state where the catastrophe has been declared or an emergency situation has occurreddeleted text end new text begin
Minnesotanew text end , that will act as an emergency independent adjuster on behalf of the insurernew text begin
pursuant to paragraph (b)new text end .

(b) A person who is otherwise qualified to adjust claims, but not already licensed in
deleted text begin the state where the catastrophe has been declared or an emergency situation has occurreddeleted text end new text begin
Minnesotanew text end , may act as an emergency independent adjuster and adjust claims, if, within
five days of deployment to adjust claims arising from the deleted text begin declareddeleted text end catastrophe deleted text begin or the
occurrence of an emergency situationdeleted text end , the insurer new text begin or the independent adjuster's employer,
in the notification required by paragraph (a), new text end notifies the commissioner by providing the
following information in a format prescribed by the commissioner:

(1) the name of the individual;

(2) the Social Security number of the individual;

(3) the name of the insurer the independent adjuster will represent;

(4) the effective date of the contract between the insurer and independent adjusternew text begin or
the independent adjuster's employernew text end ;

(5) the catastrophedeleted text begin , emergency situation, ordeleted text end loss control number;

(6) the catastrophe deleted text begin or emergency situation eventdeleted text end name; and

(7) other information the commissioner deems necessary.

(c) An emergency independent adjuster's license or registration remains in force for
deleted text begin the period of time established by the commissionerdeleted text end new text begin 180 days; such license or registration
shall be effective for all catastrophes described in paragraph (a), clauses (1) and (2). Such
license or registration may be extended for 180 daysnew text end .

The commissioner may summarily suspend or revoke the right of any person
adjusting in this state under the authority of this section to continue to adjust in this state,
if the commissioner finds that that person has engaged in any of the practices forbidden
to a licensed adjuster under sections 72B.01 to 72B.14. Notice of such suspension or
revocation may be given personally or by mail sent to the temporary address stated in the
registrationnew text begin and to the insurer or independent adjusting firm company who submitted the
independent adjuster informationnew text end .

Sec. 35.

Minnesota Statutes 2008, section 72B.08, subdivision 8, is amended to read:

Subd. 8.

Bond.

In the case of any licensee or permit holder who has had a license or
permit suspended or revoked or whose license renewal has been prohibited by a lawful
order of the commissioner, the commissioner may condition the issuance of a new license
on the filing of a surety bond in an amount not to exceed $10,000, made and conditioned in
accordance with the requirements of section deleted text begin 72B.04, subdivision 4deleted text end new text begin 72B.041, subdivision
3new text end , relating to public adjusters' bonds. Nothing in this subdivision shall reduce or alter the
bonding requirements for a public adjuster.

Sec. 36.

Minnesota Statutes 2008, section 79A.03, subdivision 8, is amended to read:

Subd. 8.

Processing application.

The commissioner shall grant or deny the group's
application to self-insure within 60 days after a complete application has been filed,
provided that the time may be extended for an additional 30 days upon 15 days' prior
notice to the applicant. The commissioner shall grant approval for self-insurance upon
a determination that the financial ability of the self-insurer's group is sufficient to fulfill
all joint and several obligations of the member companies that may arise under chapter
176 or this chapter; the gross annual premium of the group members is at least deleted text begin $300,000deleted text end new text begin
150 percent of the WCRA minimum retention in effect at the time of the applicationnew text end ; the
group has established a fund pursuant to Minnesota Rules, parts 2780.4100 to 2780.5000;
the group has contracted with a licensed workers' compensation service company to
administer its program; and the required securities or surety bond shall be on deposit prior
to the effective date of coverage for any member. Approval shall be effective until revoked
by order of the commissioner or until the employer members of the group become insured.

Sec. 37.

Minnesota Statutes 2008, section 79A.06, subdivision 5, is amended to read:

Subd. 5.

Private employers who have ceased to be self-insured.

(a) Private
employers who have ceased to be private self-insurers shall discharge their continuing
obligations to secure the payment of compensation which is accrued during the period of
self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to 21, by compliance
with all of the following obligations of current certificate holders:

(1) Filing reports with the commissioner to carry out the requirements of this chapter;

(2) Depositing and maintaining a security deposit for accrued liability for the
payment of any compensation which may become due, pursuant to chapter 176. However,
if a private employer who has ceased to be a private self-insurer purchases an insurance
policy from an insurer authorized to transact workers' compensation insurance in this state
which provides coverage of all claims for compensation arising out of injuries occurring
during the entire period the employer was self-insured, whether or not reported during
that period, the policy will:

(i) discharge the obligation of the employer to maintain a security deposit for the
payment of the claims covered under the policy;

(ii) discharge any obligation which the self-insurers' security fund has or may have
for payment of all claims for compensation arising out of injuries occurring during the
period the employer was self-insured, whether or not reported during that period; and

(iii) discharge the obligations of the employer to pay any future assessments to
the self-insurers' security fundnew text begin ; provided, however, that a member that terminates its
self-insurance authority on or after August 1, 2010, shall be liable for an assessment under
paragraph (b). The actuarial opinion shall not take into consideration any transfer of the
member's liabilities to an insurance policy if the member obtains a replacement policy as
described in this subdivision within one year of the date of terminating its self-insurancenew text end .

A private employer who has ceased to be a private self-insurer may instead buy an
insurance policy described above, except that it covers only a portion of the period of time
during which the private employer was self-insured; purchase of such a policy discharges
any obligation that the self-insurers' security fund has or may have for payment of all
claims for compensation arising out of injuries occurring during the period for which the
policy provides coverage, whether or not reported during that period.

A policy described in this clause may not be issued by an insurer unless it has
previously been approved as to form and substance by the commissioner; and

(3) Paying within 30 days all assessments of which notice is sent by the security
fund, for a period of seven years from the last day its certificate of self-insurance was in
effect. Thereafter, the private employer who has ceased to be a private self-insurer may
either: (i) continue to pay within 30 days all assessments of which notice is sent by the
security fund until it has no incurred liabilities for the payment of compensation arising
out of injuries during the period of self-insurance; or (ii) pay the security fund a cash
payment equal to four percent of the net present value of all remaining incurred liabilities
for the payment of compensation under sections 176.101 and 176.111 as certified by a
member of the casualty actuarial society. Assessments shall be based on the benefits paid
by the employer during the calendar year immediately preceding the calendar year in
which the employer's right to self-insure is terminated or withdrawn.

(b) With respect to a self-insurer who terminates its self-insurance authority after
April 1, 1998, that member shall obtain and file with the commissioner an actuarial
opinion of its outstanding liabilities as determined by an associate or fellow of the
Casualty Actuarial Society within 120 days of the date of its termination. If the actuarial
opinion is not timely filed, the self-insurers' security fund may, at its discretion, engage
the services of an actuary for this purpose. The expense of this actuarial opinion must
be assessed against and be the obligation of the self-insurer. The commissioner may
issue a certificate of default against the self-insurer for failure to pay this assessment
to the self-insurers' security fund as provided by section 79A.04, subdivision 9. The
opinion deleted text begin must separate liability for indemnity benefits from liability from medical benefits,
and mustdeleted text end new text begin maynew text end discount deleted text begin eachdeleted text end new text begin liabilitiesnew text end up to four percent per annum to net present
value. Within deleted text begin 30deleted text end new text begin 60new text end days after notification of approval of the actuarial opinion by the
commissioner, thenew text begin exitingnew text end member shall pay to the security fund an amount deleted text begin equal to 120
percent of that discounted outstanding indemnity liability, multiplied by the greater of the
average annualized assessment rate since inception of the security fund or the annual
rate at the time of the most recent assessment before terminationdeleted text end new text begin determined as follows:new text end new text begin
a percentage will be determined by dividing the security fund's members' deficit as
determined by the most recent audited financial statement of the security fund by the total
actuarial liability of all members of the security fund as calculated by the commissioner
within 30 days of the exit date of the member. This quotient will then be multiplied by
that exiting member's total future liability as contained in the exiting member's actuarial
opinionnew text end . If the payment is not made within 30 days of the notification, interest on it at the
rate prescribed by section 549.09 must be paid by the former member to the security fund
until the principal amount is paid in full.

(c) A former member who terminated its self-insurance authority before April 1,
1998, who has paid assessments to the self-insurers' security fund for seven years, and
whose annualized assessment is $15,000 or less, may buy out of its outstanding liabilities
to the self-insurers' security fund by an amount calculated as follows: 1.35 multiplied by
the indemnity case reserves at the time of the calculation, multiplied by the then current
self-insurers' security fund annualized assessment rate.

(d) A former member who terminated its self-insurance authority before April 1,
1998, and who is paying assessments within the first seven years after ceasing to be
self-insured under paragraph (a), clause (3), may elect to buy out its outstanding liabilities
to the self-insurers' security fund by obtaining and filing with the commissioner an
actuarial opinion of its outstanding liabilities as determined by an associate or fellow of
the Casualty Actuarial Society. The opinion must separate liability for indemnity benefits
from liability for medical benefits, and must discount each up to four percent per annum to
net present value. Within 30 days after notification of approval of the actuarial opinion
by the commissioner, the member shall pay to the security fund an amount equal to 120
percent of that discounted outstanding indemnity liability, multiplied by the greater of the
average annualized assessment rate since inception of the security fund or the annual rate
at the time of the most recent assessment.

(e) A former member who has paid the security fund according to paragraphs (b) to
(d) and subsequently receives authority from the commissioner to again self-insure shall be
assessed under section 79A.12, subdivision 2, only on indemnity benefits paid on injuries
that occurred after the former member received authority to self-insure again; provided
that the member furnishes verified data regarding those benefits to the security fund.

(f) In addition to proceedings to establish liabilities and penalties otherwise
provided, a failure to comply may be the subject of a proceeding before the commissioner.
An appeal from the commissioner's determination may be taken pursuant to the contested
case procedures of chapter 14 within 30 days of the commissioner's written determination.

Any current or past member of the self-insurers' security fund is subject to service of
process on any claim arising out of chapter 176 or this chapter in the manner provided by
section 5.25, or as otherwise provided by law. The issuance of a certificate to self-insure
to the private self-insured employer shall be deemed to be the agreement that any process
which is served in accordance with this section shall be of the same legal force and effect
as if served personally within this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010, and applies to
terminations of self-insurance authority that become effective on or after that date.
new text end

Sec. 38.

Minnesota Statutes 2008, section 79A.21, subdivision 3, is amended to read:

Subd. 3.

Approval.

The commissioner shall approve an application for
self-insurance upon a determination that all of the following conditions are met:

(1) a completed application and all required documents have been submitted to
the commissioner;

(2) the financial ability of the commercial self-insurance group is sufficient to fulfill
all obligations that may arise under this chapter or chapter 176;

(3) the annual premium of the commercial self-insurance group to be charged to
initial members is at least deleted text begin $400,000deleted text end new text begin 150 percent of the WCRA minimum retention in
effect at the time of the applicationnew text end ;

(4) the commercial self-insurance group has contracted with a service company to
administer its program; and

(5) the required securities or surety bond shall be on deposit prior to the effective
date of coverage for the commercial self-insurance group.

Sec. 39.

Minnesota Statutes 2008, section 80A.41, is amended to read:

80A.41 SECTION 102; DEFINITIONS.

In this chapter, unless the context otherwise requires:

(1) "Accredited investor" means an accredited investor as the term is defined in Rule
501(a) of Regulation D adopted pursuant to the Securities Act of 1933.

(2) "Administrator" means the commissioner of commerce.

(3) "Agent" means an individual, other than a broker-dealer, who represents a
broker-dealer in effecting or attempting to effect purchases or sales of securities or
represents an issuer in effecting or attempting to effect purchases or sales of the issuer's
securities. But a partner, officer, or director of a broker-dealer or issuer, or an individual
having a similar status or performing similar functions is an agent only if the individual
otherwise comes within the term. The term does not include an individual excluded by
rule adopted or order issued under this chapter.

(4) "Bank" means:

(A) a banking institution organized under the laws of the United States;

(B) a member bank of the Federal Reserve System;

(C) any other banking institution, whether incorporated or not, doing business
under the laws of a state or of the United States, a substantial portion of the business
of which consists of receiving deposits or exercising fiduciary powers similar to those
permitted to be exercised by national banks under the authority of the Comptroller of the
Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a), and which
is supervised and examined by a state or federal agency having supervision over banks,
and which is not operated for the purpose of evading this chapter; and

(D) a receiver, conservator, or other liquidating agent of any institution or firm
included in subparagraph (A), (B), or (C).

(5) "Broker-dealer" means a person engaged in the business of effecting transactions
in securities for the account of others or for the person's own account. The term does
not include:

(A) an agent;

(B) an issuer;

(C) a depository institution; provided such activities are conducted in accordance
with such rules as may be adopted by the administrator;

(D) an international banking institution; or

(E) a person excluded by rule adopted or order issued under this chapter.

(6) "Depository institution" means:

(A) a bank; or

(B) a savings institution, trust company, credit union, or similar institution that
is organized or chartered under the laws of a state or of the United States, authorized
to receive deposits, and supervised and examined by an official or agency of a state or
the United States if its deposits or share accounts are insured to the maximum amount
authorized by statute by the Federal Deposit Insurance Corporation, the National Credit
Union Share Insurance Fund, or a successor authorized by federal law. The term does
not include:

(i) an insurance company or other organization primarily engaged in the business
of insurance;

(ii) a Morris Plan bank; or

(iii) an industrial loan company that is not an "insured depository institution" as
defined in section 3(c)(2) of the Federal Deposit Insurance Act, United States Code, title
12, section 1813(c)(2), or any successor federal statute.

(7) "Federal covered investment adviser" means a person registered under the
Investment Advisers Act of 1940.

(8) "Federal covered security" means a security that is, or upon completion of a
transaction will be, a covered security under Section 18(b) of the Securities Act of 1933
(15 U.S.C. Section 77r(b)) or rules or regulations adopted pursuant to that provision.

(9) "Filing" means the receipt under this chapter of a record by the administrator or
a designee of the administrator.

(10) "Fraud," "deceit," and "defraud" are not limited to common law deceit.

(11) "Guaranteed" means guaranteed as to payment of all principal and all interest.

(12) "Institutional investor" means any of the following, whether acting for itself or
for others in a fiduciary capacity:

(A) a depository institution or international banking institution;

(B) an insurance company;

(D) an investment company as defined in the Investment Company Act of 1940;

(E) a broker-dealer registered under the Securities Exchange Act of 1934;

(F) an employee pension, profit-sharing, or benefit plan if the plan has total assets
in excess of $10,000,000 or its investment decisions are made by a named fiduciary, as
defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer
registered under the Securities Exchange Act of 1934, an investment adviser registered
or exempt from registration under the Investment Advisers Act of 1940, an investment
adviser registered under this chapter, a depository institution, or an insurance company;

(G) a plan established and maintained by a state, a political subdivision of a state, or
an agency or instrumentality of a state or a political subdivision of a state for the benefit
of its employees, if the plan has total assets in excess of $10,000,000 or its investment
decisions are made by a duly designated public official or by a named fiduciary, as
defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer
registered under the Securities Exchange Act of 1934, an investment adviser registered
or exempt from registration under the Investment Advisers Act of 1940, an investment
adviser registered under this chapter, a depository institution, or an insurance company;

(H) a trust, if it has total assets in excess of $10,000,000, its trustee is a depository
institution, and its participants are exclusively plans of the types identified in subparagraph
(F) or (G), regardless of the size of their assets, except a trust that includes as participants
self-directed individual retirement accounts or similar self-directed plans;

(I) an organization described in Section 501(c)(3) of the Internal Revenue Code (26
U.S.C. Section 501(c)(3)), corporation, Massachusetts trust or similar business trust,
limited liability company, or partnership, not formed for the specific purpose of acquiring
the securities offered, with total assets in excess of $10,000,000;

(J) a small business investment company licensed by the Small Business
Administration under Section 301(c) of the Small Business Investment Act of 1958 (15
U.S.C. Section 681(c)) with total assets in excess of $10,000,000;

(K) a private business development company as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(22)) with total assets
in excess of $10,000,000;

(L) a federal covered investment adviser acting for its own account;

(M) a "qualified institutional buyer" as defined in Rule 144A(a)(1), other than Rule
144A(a)(1)(i)(H), adopted under the Securities Act of 1933 (17 C.F.R. 230.144A);

(N) a "major U.S. institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted
under the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6);

(O) any other person, other than an individual, of institutional character with total
assets in excess of $10,000,000 not organized for the specific purpose of evading this
chapter; or

(P) any other person specified by rule adopted or order issued under this chapter;

(13) "Insurance company" means a company organized as an insurance company
whose primary business is writing insurance or reinsuring risks underwritten by insurance
companies and which is subject to supervision by the insurance commissioner or a similar
official or agency of a state.

(14) "Insured" means insured as to payment of all principal and all interest.

(15) "International banking institution" means an international financial institution
of which the United States is a member and whose securities are exempt from registration
under the Securities Act of 1933.

(16) "Investment adviser" means a person that, for compensation, engages in the
business of advising others, either directly or through publications or writings, as to the
value of securities or the advisability of investing in, purchasing, or selling securities or
that, for compensation and as a part of a regular business, issues or promulgates analyses
or reports concerning securities. The term includes a financial planner or other person
that, as an integral component of other financially related services, provides investment
advice to others for compensation as part of a business or that holds itself out as providing
investment advice to others for compensation. The term does not include:

(A) an investment adviser representative;

(B) a lawyer, accountant, engineer, or teacher whose performance of investment
advice is solely incidental to the practice of the person's profession;

(C) a broker-dealer or its agents whose performance of investment advice is solely
incidental to the conduct of business as a broker-dealer and that does not receive special
compensation for the investment advice;

(D) a publisher of a bona fide newspaper, news magazine, or business or financial
publication of general and regular circulation;

(E) a federal covered investment adviser;

(F) a bank or savings institution;

(G) any other person that is excluded by the Investment Advisers Act of 1940 from
the definition of investment adviser; or

(H) any other person excluded by rule adopted or order issued under this chapter.

(17) "Investment adviser representative" means an individual employed by or
associated with an investment adviser or federal covered investment adviser and who
makes any recommendations or otherwise gives investment advice regarding securities,
manages accounts or portfolios of clients, determines which recommendation or advice
regarding securities should be given, provides investment advice or holds herself or
himself out as providing investment advice, receives compensation to solicit, offer, or
negotiate for the sale of or for selling investment advice, or supervises employees who
perform any of the foregoing. The term does not include an individual who:

(A) performs only clerical or ministerial acts;

(B) is an agent whose performance of investment advice is solely incidental to
the individual acting as an agent and who does not receive special compensation for
investment advisory services;

(C) is employed by or associated with a federal covered investment adviser, unless
the individual has a "place of business" in this state as that term is defined by rule adopted
under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a)
and is

(i) an "investment adviser representative" as that term is defined by rule adopted
under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or

(ii) not a "supervised person" as that term is defined in Section 202(a)(25) of the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or

(D) is excluded by rule adopted or order issued under this chapter.

(18) "Issuer" means a person that issues or proposes to issue a security, subject to
the following:

(A) The issuer of a voting trust certificate, collateral trust certificate, certificate of
deposit for a security, or share in an investment company without a board of directors or
individuals performing similar functions is the person performing the acts and assuming
the duties of depositor or manager pursuant to the trust or other agreement or instrument
under which the security is issued.

(B) The issuer of an equipment trust certificate or similar security serving the same
purpose is the person by which the property is or will be used or to which the property
or equipment is or will be leased or conditionally sold or that is otherwise contractually
responsible for assuring payment of the certificate.

(C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease
or in payments out of production under a lease, right, or royalty is the owner of an interest
in the lease or in payments out of production under a lease, right, or royalty, whether
whole or fractional, that creates fractional interests for the purpose of sale.

(19) "Nonissuer transaction" or "nonissuer distribution" means a transaction or
distribution not directly or indirectly for the benefit of the issuer.

(20) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an
offer to sell, a security or interest in a security for value. The term does not include a
tender offer that is subject to Section 14(d) of the Securities Exchange Act of 1934 (15
U.S.C. Section 78n(d)).

(21) "Person" means an individual; corporation; business trust; estate; trust;
partnership; limited liability company; association; joint venture; government;
governmental subdivision, agency, or instrumentality; public corporation; or any other
legal or commercial entity.

(22) "Place of business" of a broker-dealer, an investment adviser, or a federal
covered investment adviser means:

(A) an office at which the broker-dealer, investment adviser, or federal covered
investment adviser regularly provides brokerage or investment advice or solicits, meets
with, or otherwise communicates with customers or clients; or

(B) any other location that is held out to the general public as a location at which
the broker-dealer, investment adviser, or federal covered investment adviser provides
brokerage or investment advice or solicits, meets with, or otherwise communicates with
customers or clients.

(23) "Predecessor Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31.

(24) "Price amendment" means the amendment to a registration statement filed under
the Securities Act of 1933 or, if an amendment is not filed, the prospectus or prospectus
supplement filed under the Securities Act of 1933 that includes a statement of the offering
price, underwriting and selling discounts or commissions, amount of proceeds, conversion
rates, call prices, and other matters dependent upon the offering price.

(25) "Principal place of business" of a broker-dealer or an investment adviser means
the executive office of the broker-dealer or investment adviser from which the officers,
partners, or managers of the broker-dealer or investment adviser direct, control, and
coordinate the activities of the broker-dealer or investment adviser.

(26) new text begin Only for purposes of calculating the number of purchasers under section
80A.46(1) and 80A.46(14), new text end "purchaser" does not include:

(A) any relative, spouse, or relative of the spouse of a purchaser who has the same
principal residence as the purchaser;

(B) any trust or estate in which a purchaser and any of the persons related to him as
specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50
percent of the beneficial interest (excluding contingent interests);

(C) any corporation or other organization of which a purchaser and any of the
persons related to the purchaser as specified in Regulation D, Rule 501(e)(1)(i) or
(e)(1)(ii) collectively are beneficial owners of more than 50 percent of the equity securities
(excluding directors' qualifying shares) or equity interests; and

(D) any accredited investor.

A corporation, partnership, or other entity must be counted as one purchaser. If,
however, that entity is organized for the specific purpose of acquiring the securities offered
and is not an accredited investor, then each beneficial owner of equity securities or equity
interests in the entity shall count as a separate purchaser for all provisions of Regulation
D, except to the extent provided in Regulation D, Rule 501(e)(1).

A noncontributory employee benefit plan within the meaning of Title I of the
Employee Retirement Income Security Act of 1974 shall be counted as one purchaser
where the trustee makes all investment decisions for the plan.

(27) "Record," except in the phrases "of record," "official record," and "public
record," means information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form.

(28) "Sale" includes every contract of sale, contract to sell, or disposition of, a
security or interest in a security for value, and "offer to sell" includes every attempt or
offer to dispose of, or solicitation of an offer to purchase, a security or interest in a
security for value.

(A) A security given or delivered with, or as a bonus on account of, any purchase of
securities or any other thing is considered to constitute part of the subject of the purchase
and to have been offered and sold for value.

(B) A gift of assessable stock is considered to involve an offer and sale.

(C) A sale or offer of a warrant or right to purchase or subscribe to another security
of the same or another issuer and a sale or offer of a security that gives the holder a present
or future right or privilege to convert the security into another security of the same or
another issuer, are each considered to include an offer of the other security.

(29) "Securities and Exchange Commission" means the United States Securities and
Exchange Commission.

(30) "Security" means a note; stock; treasury stock; security future; bond; debenture;
evidence of indebtedness; certificate of interest or participation in a profit-sharing
agreement; collateral trust certificate; preorganization certificate or subscription;
transferable share; investment contract; voting trust certificate; certificate of deposit for a
security; fractional undivided interest in oil, gas, or other mineral rights; put, call, straddle,
option, or privilege on a security, certificate of deposit, or group or index of securities,
including an interest therein or based on the value thereof; put, call, straddle, option, or
privilege entered into on a national securities exchange relating to foreign currency; or,
in general, an interest or instrument commonly known as a "security"; or a certificate of
interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or
warrant or right to subscribe to or purchase, any of the foregoing. The term:

(A) includes both a certificated and an uncertificated security;

(B) does not include an insurance or endowment policy or annuity contract under
which an insurance company promises to pay a fixed or variable sum of money either in a
lump sum or periodically for life or other specified period;

(C) does not include an interest in a contributory or noncontributory pension or
welfare plan subject to the Employee Retirement Income Security Act of 1974;

(D) includes as an "investment contract," among other contracts, an interest in
a limited partnership and a limited liability company and an investment in a viatical
settlement or similar agreement; and

(E) does not include any equity interest of a closely held corporation or other entity
with not more than 35 holders of the equity interest of such entity offered or sold pursuant
to a transaction in which 100 percent of the equity interest of such entity is sold as a means
to effect the sale of the business of the entity if the transaction has been negotiated on
behalf of all purchasers and if all purchasers have access to inside information regarding
the entity before consummating the transaction.

(31) "Self-regulatory organization" means a national securities exchange registered
under the Securities Exchange Act of 1934, a national securities association of
broker-dealers registered under the Securities Exchange Act of 1934, a clearing agency
registered under the Securities Exchange Act of 1934, or the Municipal Securities
Rulemaking Board established under the Securities Exchange Act of 1934.

(32) "Sign" means, with present intent to authenticate or adopt a record:

(A) to execute or adopt a tangible symbol; or

(B) to attach or logically associate with the record an electronic symbol, sound,
or process.

(33) "State" means a state of the United States, the District of Columbia, Puerto
Rico, the United States Virgin Islands, or any territory or insular possession subject to the
jurisdiction of the United States.

(34) "Associated with" with respect to a person means any partner, officer, director,
or manager of such person or any person occupying a similar status or performing
similar functions or any person directly or indirectly controlling, controlled by, or in
common control with, such person, but does not include a person whose primary duties
are ministerial or clerical.

Sec. 40.

Minnesota Statutes 2008, section 80A.46, is amended to read:

80A.46 SECTION 202; EXEMPT TRANSACTIONS.

The following transactions are exempt from the requirements of sections 80A.49
through 80A.54 and 80A.71:

(1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers
in Minnesota during any period of 12 consecutive months, whether effected by or through
a broker-dealer or not;

(2) a nonissuer transaction by or through a broker-dealer registered, or exempt from
registration under this chapter, and a resale transaction by a sponsor of a unit investment
trust registered under the Investment Company Act of 1940, in a security of a class that
has been outstanding in the hands of the public for at least 90 days, if, at the date of
the transaction:

(A) the issuer of the security is engaged in business, the issuer is not in the
organizational stage or in bankruptcy or receivership, and the issuer is not a blank check,
blind pool, or shell company that has no specific business plan or purpose or has indicated
that its primary business plan is to engage in a merger or combination of the business with,
or an acquisition of, an unidentified person;

(B) the security is sold at a price reasonably related to its current market price;

(C) the security does not constitute the whole or part of an unsold allotment to, or
a subscription or participation by, the broker-dealer as an underwriter of the security
or a redistribution;

(D) a nationally recognized securities manual or its electronic equivalent designated
by rule adopted or order issued under this chapter or a record filed with the Securities and
Exchange Commission that is publicly available contains:

(i) a description of the business and operations of the issuer;

(ii) the names of the issuer's executive officers and the names of the issuer's
directors, if any;

(iii) an audited balance sheet of the issuer as of a date within 18 months before the
date of the transaction or, in the case of a reorganization or merger when the parties to
the reorganization or merger each had an audited balance sheet, a pro forma balance
sheet for the combined organization; and

(iv) an audited income statement for each of the issuer's two immediately previous
fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case
of a reorganization or merger when each party to the reorganization or merger had audited
income statements, a pro forma income statement; and

(E) any one of the following requirements is met:

(i) the issuer of the security has a class of equity securities listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934
or designated for trading on the National Association of Securities Dealers Automated
Quotation System;

(ii) the issuer of the security is a unit investment trust registered under the Investment
Company Act of 1940;

(iii) the issuer of the security, including its predecessors, has been engaged in
continuous business for at least three years; or

(iv) the issuer of the security has total assets of at least $2,000,000 based on an
audited balance sheet as of a date within 18 months before the date of the transaction or, in
the case of a reorganization or merger when the parties to the reorganization or merger
each had such an audited balance sheet, a pro forma balance sheet for the combined
organization;

(3) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security of a foreign issuer that is a margin security
defined in regulations or rules adopted by the Board of Governors of the Federal Reserve
System;

(4) a nonissuer transaction by or through a broker-dealer registered or exempt
from registration under this chapter in an outstanding security if the guarantor of the
security files reports with the Securities and Exchange Commission under the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
Sections 78m or 78o(d));

(5) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security that:

(A) is rated at the time of the transaction by a nationally recognized statistical rating
organization in one of its four highest rating categories; or

(B) has a fixed maturity or a fixed interest or dividend, if:

(i) a default has not occurred during the current fiscal year or within the three
previous fiscal years or during the existence of the issuer and any predecessor if less than
three fiscal years, in the payment of principal, interest, or dividends on the security; and

(ii) the issuer is engaged in business, is not in the organizational stage or in
bankruptcy or receivership, and is not and has not been within the previous 12 months a
blank check, blind pool, or shell company that has no specific business plan or purpose or
has indicated that its primary business plan is to engage in a merger or combination of the
business with, or an acquisition of, an unidentified person;

(6) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter effecting an unsolicited order or offer to purchase;

(7) a nonissuer transaction executed by a bona fide pledgee without the purpose
of evading this chapter;

(8) a nonissuer transaction by a federal covered investment adviser with investments
under management in excess of $100,000,000 acting in the exercise of discretionary
authority in a signed record for the account of others;

(9) a transaction in a security, whether or not the security or transaction is otherwise
exempt, in exchange for one or more bona fide outstanding securities, claims, or property
interests, or partly in such exchange and partly for cash, if the terms and conditions of
the issuance and exchange or the delivery and exchange and the fairness of the terms and
conditions have been approved by the administrator after a hearing;

(10) a transaction between the issuer or other person on whose behalf the offering is
made and an underwriter, or among underwriters;

(11) a transaction in a note, bond, debenture, or other evidence of indebtedness
secured by a mortgage or other security agreement if:

(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold
with the mortgage or other security agreement as a unit;

(B) a general solicitation or general advertisement of the transaction is not made; and

(C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person not registered under this chapter as a broker-dealer or as an agent;

(12) a transaction by an executor, administrator of an estate, sheriff, marshal,
receiver, trustee in bankruptcy, guardian, or conservator;

(13) a sale or offer to sell to:

(A) an institutional investor;

(B) an accredited investor;

(D) any other person exempted by rule adopted or order issued under this chapter;

(14) a sale or an offer to sell securities by an issuer, if the transaction is part of
a single issue in which:

(A) not more than 35 purchasers are present in this state during any 12 consecutive
months, other than those designated in paragraph (13);

(B) a general solicitation or general advertising is not made in connection with
the offer to sell or sale of the securities;

(C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person other than a broker-dealer registered under this chapter or an agent registered
under this chapter for soliciting a prospective purchaser in this state; and

(D) the issuer reasonably believes that all the purchasers in this state, other than
those designated in paragraph (13), are purchasing for investment.

Any issuer selling to purchasers in this state in reliance on this clause (14) exemption
must provide to the administrator notice of the transaction by filing a statement of issuer
form as adopted by rule. Notice must be filed at least ten days in advance of any sale or
such shorter period as permitted by the administrator. However, an issuer who makes sales
to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not
required to provide this notice;

(15) a transaction under an offer to existing security holders of the issuer, including
persons that at the date of the transaction are holders of convertible securities, options,
or warrants, if a commission or other remuneration, other than a standby commission, is
not paid or given, directly or indirectly, for soliciting a security holder in this state. The
person making the offer and effecting the transaction must provide to the administrator
notice of the transaction by filing a written description of the transaction. Notice must be
filed at least ten days in advance of any transaction or such shorter period as permitted by
the administrator;

(16) an offer to sell, but not a sale, of a security not exempt from registration under
the Securities Act of 1933 if:

(A) a registration or offering statement or similar record as required under the
Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance
with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and

(B) a stop order of which the offeror is aware has not been issued against the offeror
by the administrator or the Securities and Exchange Commission, and an audit, inspection,
or proceeding that is public and that may culminate in a stop order is not known by the
offeror to be pending;

(17) an offer to sell, but not a sale, of a security exempt from registration under the
Securities Act of 1933 if:

(A) a registration statement has been filed under this chapter, but is not effective;

(B) a solicitation of interest is provided in a record to offerees in compliance with a
rule adopted by the administrator under this chapter; and

(C) a stop order of which the offeror is aware has not been issued by the administrator
under this chapter and an audit, inspection, or proceeding that may culminate in a stop
order is not known by the offeror to be pending;

(18) a transaction involving the distribution of the securities of an issuer to the
security holders of another person in connection with a merger, consolidation, exchange
of securities, sale of assets, or other reorganization to which the issuer, or its parent
or subsidiary and the other person, or its parent or subsidiary, are parties. The person
distributing the issuer's securities must provide to the administrator notice of the
transaction by filing a written description of the transaction along with a consent to service
of process complying with section 80A.88. Notice must be filed at least ten days in
advance of any transaction or such shorter period as permitted by the administrator;

(19) a rescission offer, sale, or purchase under section 80A.77deleted text begin ;deleted text end new text begin . The person making
the rescission offer must provide to the administrator notice of the transaction by filing a
written description of the transaction and a copy of the record that must be delivered to the
offeree under section 80A.77. Notice must be filed at least ten days in advance of any
rescission offer under section 80A.77 or a shorter period as permitted by the administrator;new text end

(20) an offer or sale of a security to a person not a resident of this state and not
present in this state if the offer or sale does not constitute a violation of the laws of the
state or foreign jurisdiction in which the offeree or purchaser is present and is not part of
an unlawful plan or scheme to evade this chapter;

(21) employees' stock purchase, savings, option, profit-sharing, pension, or
similar employees' benefit plan, including any securities, plan interests, and guarantees
issued under a compensatory benefit plan or compensation contract, contained in a
record, established by the issuer, its parents, its majority-owned subsidiaries, or the
majority-owned subsidiaries of the issuer's parent for the participation of their employees
including offers or sales of such securities to:

(A) directors; general partners; trustees, if the issuer is a business trust; officers;
consultants; and advisors;

(B) family members who acquire such securities from those persons through gifts or
domestic relations orders;

(C) former employees, directors, general partners, trustees, officers, consultants, and
advisors if those individuals were employed by or providing services to the issuer when
the securities were offered; and

(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's
subsidiaries or parents, or who derive more than 50 percent of their annual income from
those organizations.

A person establishing an employee benefit plan under the exemption in this clause
(21) must provide to the administrator notice of the transaction by filing a written
description of the transaction along with a consent to service of process complying with
section 80A.88. Notice must be filed at least ten days in advance of any transaction or
such shorter period as permitted by the administrator;

(22) a transaction involving:

(A) a stock dividend or equivalent equity distribution, whether the corporation or
other business organization distributing the dividend or equivalent equity distribution is
the issuer or not, if nothing of value is given by stockholders or other equity holders for
the dividend or equivalent equity distribution other than the surrender of a right to a cash
or property dividend if each stockholder or other equity holder may elect to take the
dividend or equivalent equity distribution in cash, property, or stock;

(B) an act incident to a judicially approved reorganization in which a security is
issued in exchange for one or more outstanding securities, claims, or property interests, or
partly in such exchange and partly for cash; or

(C) the solicitation of tenders of securities by an offeror in a tender offer in
compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162);

(23) a nonissuer transaction in an outstanding security by or through a broker-dealer
registered or exempt from registration under this chapter, if the issuer is a reporting
issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order
issued under this chapter; has been subject to continuous reporting requirements in the
foreign jurisdiction for not less than 180 days before the transaction; and the security is
listed on the foreign jurisdiction's securities exchange that has been designated by this
paragraph or by rule adopted or order issued under this chapter, or is a security of the same
issuer that is of senior or substantially equal rank to the listed security or is a warrant or
right to purchase or subscribe to any of the foregoing. For purposes of this paragraph,
Canada, together with its provinces and territories, is a designated foreign jurisdiction
and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an
administrative hearing in compliance with chapter 14, the administrator, by rule adopted
or order issued under this chapter, may revoke the designation of a securities exchange
under this paragraph, if the administrator finds that revocation is necessary or appropriate
in the public interest and for the protection of investors;

(24) any transaction effected by or through a Canadian broker-dealer exempted from
broker-dealer registration pursuant to section 80A.56(b)(3); or

(25)(A) the offer and sale by a cooperative organized under chapter 308A, or
under the laws of another state, of its securities when the securities are offered and sold
only to its members, or when the purchase of the securities is necessary or incidental to
establishing membership in the cooperative, or when the securities are issued as patronage
dividends. This paragraph applies to a cooperative organized under chapter 308A, or under
the laws of another state, only if the cooperative has filed with the administrator a consent
to service of process under section 80A.88 and has, not less than ten days before the
issuance or delivery, furnished the administrator with a written general description of the
transaction and any other information that the administrator requires by rule or otherwise;

(B) the offer and sale by a cooperative organized under chapter 308B of its securities
when the securities are offered and sold to its existing members or when the purchase of the
securities is necessary or incidental to establishing patron membership in the cooperative,
or when such securities are issued as patronage dividends. The administrator has the
power to define "patron membership" for purposes of this paragraph. This paragraph
applies to securities, other than securities issued as patronage dividends, only when:

(i) the issuer, before the completion of the sale of the securities, provides each
offeree or purchaser disclosure materials that, to the extent material to an understanding of
the issuer, its business, and the securities being offered, substantially meet the disclosure
conditions and limitations found in rule 502(b) of Regulation D promulgated by the
Securities and Exchange Commission, Code of Federal Regulations, title 17, section
230.502; and

(ii) within 15 days after the completion of the first sale in each offering completed in
reliance upon this exemption, the cooperative has filed with the administrator a consent to
service of process under section 80A.88 (or has previously filed such a consent), and has
furnished the administrator with a written general description of the transaction and any
other information that the administrator requires by rule or otherwise; and

(C) a cooperative may, at or about the same time as offers or sales are being
completed in reliance upon the exemptions from registration found in this subpart and as
part of a common plan of financing, offer or sell its securities in reliance upon any other
exemption from registration available under this chapter. The offer or sale of securities in
reliance upon the exemptions found in this subpart will not be considered or deemed a part
of or be integrated with any offer or sale of securities conducted by the cooperative in
reliance upon any other exemption from registration available under this chapter, nor will
offers or sales of securities by the cooperative in reliance upon any other exemption from
registration available under this chapter be considered or deemed a part of or be integrated
with any offer or sale conducted by the cooperative in reliance upon this paragraph.

Sec. 41.

Minnesota Statutes 2008, section 80A.65, subdivision 6, is amended to read:

Subd. 6.

Rescission offer filing fee.

The filing of a rescission offer under section
deleted text begin 80A.77deleted text end new text begin 80A.46(19),new text end shall be accompanied by the fees as calculated in subdivision 1.

Sec. 42.

Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Brokerage; business entity. new text end

new text begin "Brokerage" or "business entity" means a
corporation, partnership, limited liability company, limited liability partnership, or other
business structure that holds a real estate broker license.
new text end

Sec. 43.

Minnesota Statutes 2008, section 82.17, subdivision 15, is amended to read:

Subd. 15.

Protective list.

"Protective list" means the written list of names and
addresses of prospective deleted text begin purchasersdeleted text end new text begin buyers new text end with whom a licensee has negotiated the sale
or rental of the property or to whom a licensee has exhibited the property before the
expiration of the listing agreement. For the purposes of this subdivision, "property" means
the property that is the subject of the listing agreement in question.

Sec. 44.

Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision
to read:

new text begin Subd. 20a. new text end

new text begin Responsible person. new text end

new text begin "Responsible person" means a natural person that
is an officer of a corporation, a partner of a partnership, a general partner of a limited
liability partnership, or a manager of a limited liability company.
new text end

Sec. 45.

Minnesota Statutes 2008, section 82.19, is amended to read:

82.19 COMPENSATION.

Subdivision 1.

Licensee to receive only from broker.

A licensee shall not
accept a commissionnew text begin ,new text end compensationnew text begin , referral fee,new text end or other valuable consideration for the
performance of any acts requiring a real estate license from any person except the real
estate broker to whom the licensee is licensed or to whom the licensee was licensed at the
time of the transaction.

new text begin Subd. 1a. new text end

new text begin Commission-splitting, rebates, referral fee, and fees. new text end

new text begin (a) In connection
with a real estate or business opportunity transaction, a real estate broker or real estate
salesperson shall not offer, pay, or give, and a person shall not accept, any compensation
or other thing of value from a real estate broker or real estate salesperson by way of
commission-splitting, rebate, referral fees, finder's fees, or otherwise.
new text end

new text begin (b) This subdivision does not apply to transactions:
new text end

new text begin (1) between a licensed real estate broker or salesperson and the parties to the
transaction;
new text end

new text begin (2) among persons licensed as provided in this chapter;
new text end

new text begin (3) between a licensed real estate broker or salesperson and persons from other
jurisdictions similarly licensed in that jurisdiction;
new text end

new text begin (4) involving timeshare or other recreational lands where the amount offered or paid
does not exceed $150, and payment is not conditioned upon any sale but is made merely
for providing the referral and the person paying the fee is bound by any representations
made by the person receiving the fee; and
new text end

new text begin (5) involving a person who receives a referral fee from a person or an agent of a
person licensed under this section, provided that in any 12-month period, no recipient may
earn more than the value of one month's rent, that the recipient is a resident of the property
or has lived there within 60 days of the payment of the fee, and that the person paying the
fee is bound by any representations made by the recipient of the fee.
new text end

Subd. 2.

Undisclosed compensation.

A licensee shall not accept, give, or charge
any undisclosed compensation or realize any direct or indirect remuneration that inures to
the benefit of the licensee on an expenditure made for a principal.

new text begin Subd. 2a. new text end

new text begin Sharing of compensation with other brokers. new text end

new text begin The seller may, in
the listing agreement, authorize the seller's broker to disburse part of the broker's
compensation to other brokers, including the buyer's brokers solely representing the buyer.
new text end

Subd. 3.

Limitation on broker when transaction not completed.

When the owner
fails or is unable to consummate a real estate transaction, through no fault of the purchaser,
the listing broker may not claim any portion of any trust funds deposited with the broker
by the purchaser, absent a separate agreement with the purchaser.

new text begin Subd. 3a. new text end

new text begin Directing payment of compensation. new text end

new text begin A licensed real estate broker
or salesperson may assign or direct that commissions or other compensation earned in
connection with a real estate or business opportunity transaction be paid to a corporation,
limited liability company, or sole proprietorship of which the licensed real estate broker
or salesperson is the sole owner.
new text end

new text begin Subd. 3b. new text end

new text begin Closing agent fee. new text end

new text begin A real estate closing agent may not charge a fee for
closing services to a borrower, and a borrower may not be required to pay such a fee at
settlement, if the fee was not previously disclosed in writing at least one business day
before the settlement. This disclosure requirement is satisfied if a disclosure is made or
an estimate given under section 507.45.
new text end

Sec. 46.

Minnesota Statutes 2008, section 82.21, subdivision 2, is amended to read:

Subd. 2.

Listing agreements.

(a) Requirement. Licensees shall obtain a signed
listing agreement or other signed written authorization from the owner of real property or
from another person authorized to offer the property for sale or lease before advertising to
the general public that the real property is available for sale or lease.

For the purposes of this section "advertising" includes placing a sign on the owner's
property that indicates that the property is being offered for sale or lease.

(b) Contents. All listing agreements must be in writing and must include:

(1) a definite expiration date;

(2) a description of the real property involved;

(3) the list price and any terms required by the seller;

(4) the amount of any compensation or commission or the basis for computing
the commission;

(5) a clear statement explaining the events or conditions that will entitle a broker to
a commission;

new text begin (6) a clear statement explaining if the agreement may be canceled and the terms
under which the agreement may be canceled;
new text end

deleted text begin (6)deleted text end new text begin (7) new text end information regarding an override clause, if applicable, including a statement
to the effect that the override clause will not be effective unless the licensee supplies the
seller with a protective list within 72 hours after the expiration of the listing agreement;

deleted text begin (7)deleted text end new text begin (8) new text end the following notice in not less than ten point boldface type immediately
preceding any provision of the listing agreement relating to compensation of the licensee:

"NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR
MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN
EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";

deleted text begin (8)deleted text end new text begin (9) new text end for residential property listings, the following "dual agency" disclosure
statement:

If a buyer represented by broker wishes to buy the seller's property, a dual agency
will be created. This means that broker will represent both the seller(s) and the buyer(s),
and owe the same duties to the buyer(s) that broker owes to the seller(s). This conflict
of interest will prohibit broker from advocating exclusively on the seller's behalf. Dual
agency will limit the level of representation broker can provide. If a dual agency should
arise, the seller(s) will need to agree that confidential information about price, terms, and
motivation will still be kept confidential unless the seller(s) instruct broker in writing to
disclose specific information about the seller(s). All other information will be shared.
Broker cannot act as a dual agent unless both the seller(s) and the buyer(s) agree to it. By
agreeing to a possible dual agency, the seller(s) will be giving up the right to exclusive
representation in an in-house transaction. However, if the seller(s) should decide not to
agree to a possible dual agency, and the seller(s) want broker to represent the seller(s), the
seller(s) may give up the opportunity to sell the property to buyers represented by broker.

Seller's Instructions to Broker

Having read and understood this information about dual agency, seller(s) now
instructs broker as follows:

.		Seller(s) will agree to a dual agency representation and will consider offers made by buyers represented by broker.
.		Seller(s) will not agree to a dual agency representation and will not consider offers made by buyers represented by broker.

.	.
Seller	Real Estate Company Name

.	By:	.
Seller		Salesperson
Date : . ;

deleted text begin (9)deleted text end new text begin (10) new text end a notice requiring the seller to indicate in writing whether it is acceptable to
the seller to have the licensee arrange for closing services or whether the seller wishes to
arrange for others to conduct the closing; and

deleted text begin (10)deleted text end new text begin (11) new text end for residential listings, a notice stating that after the expiration of the
listing agreement, the seller will not be obligated to pay the licensee a fee or commission
if the seller has executed another valid listing agreement pursuant to which the seller is
obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of
the real property in question. This notice may be used in the listing agreement for any
other type of real estate.

(c) Prohibited provisions. Except as otherwise provided in paragraph (d), clause
(2), licensees shall not include in a listing agreement a holdover clause, automatic
extension, or any similar provision, or an override clause the length of which is more than
six months after the expiration of the listing agreement.

(d) Override clauses. (1) Licensees shall not seek to enforce an override clause
unless a protective list has been furnished to the seller within 72 hours after the expiration
of the listing agreement.

(2) A listing agreement may contain an override clause of up to two years in length
when used in conjunction with the purchase or sale of a business. The length of the
override clause must be negotiable between the licensee and the seller of the business. The
protective list provided in connection with the override clause must include the written
acknowledgment of each party named on the protective list, that the business which is the
subject of the listing agreement was presented to that party by the licensee.

(e) Protective lists. A broker or salesperson has the burden of demonstrating that
each person on the protective list has, during the period of the listing agreement, either
made an affirmative showing of interest in the property by responding to an advertisement
or by contacting the broker or salesperson involved or has been physically shown the
property by the broker or salesperson. For the purpose of this section, the mere mailing or
other distribution by a licensee of literature setting forth information about the property in
question does not, of itself, constitute an affirmative showing of interest in the property on
the part of a subsequent purchaser.

For listings of nonresidential real property which do not contain the notice described
in paragraph (b), clause deleted text begin (10)deleted text end new text begin (11)new text end , the protective list must contain the following notice in
boldface type:

"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE
PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME
APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS
TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK
COMPETENT ADVICE."

Sec. 47.

Minnesota Statutes 2008, section 82.24, subdivision 3, is amended to read:

Subd. 3.

Broker payment consolidation.

For all license renewal fees, recovery
fund renewal fees, and recovery fund assessments pursuant to this section and section
82.43, the broker must remit the fees or assessments for the company, broker, and all
salespersons licensed to the broker, in the form of a single deleted text begin checkdeleted text end new text begin paymentnew text end .

Sec. 48.

Minnesota Statutes 2008, section 82.29, subdivision 4, is amended to read:

Subd. 4.

Broker's examination.

(a) The examination for a real estate broker's
license shall be more exacting than that for a real estate salesperson, and shall require a
higher degree of knowledge of the fundamentals of real estate practice and law.

(b) Every application for a broker's examination shall be accompanied by proof that
the applicant has had a minimum of two years of actual experience within the previous
five-year period prior to application as a licensed real estate salesperson in this or in
another state having comparable requirements or is, in the opinion of the commissioner,
otherwise or similarly qualified by reason of education or practical experience. The
applicant shall have completed educational requirements in accordance with subdivision 8.

new text begin (c) new text end An applicant for a limited broker's license pursuant to section 82.34, subdivision
13, shall not be required to have a minimum of two years of actual experience as a real
estate person in order to obtain a limited broker's license deleted text begin to act as principal onlydeleted text end .

Sec. 49.

Minnesota Statutes 2008, section 82.29, subdivision 5, is amended to read:

Subd. 5.

Waivers.

The commissioner may deleted text begin waivedeleted text end new text begin grant a waiver of new text end the real estate
licensing experience requirement for the broker's examinationnew text begin to a qualified applicant for
a waivernew text end .

(a) deleted text begin Andeleted text end new text begin A qualified new text end applicant for a waiver deleted text begin shall provide evidence ofdeleted text end new text begin is an individual
whonew text end :

(1) deleted text begin successful completion of a minimum of 90 quarter credits or 270 classroom
hours of real estate-related studiesdeleted text end new text begin has a degree in real estate from an accredited college
or universitynew text end ;

(2) deleted text begin a minimum of five consecutive years of practical experience in real estate-related
areasdeleted text end new text begin is a licensed practicing attorney whose practice involves real estate lawnew text end ; or

(3) deleted text begin successful completion of 30 credits or 90 classroom hours and three consecutive
years of practical experience in real estate-related areasdeleted text end new text begin is a public officer whose official
duties involve real estate law or real estate transactionsnew text end .

(b) A request for a waiver shall be submitted to the commissioner in writing new text begin on a
form prescribed by the commissioner new text end and be accompanied by documents necessary to
evidence qualification as set forth in paragraph (a).

(c) The waiver will lapse if the applicant fails to successfully complete the broker's
examination within one year from the date of the granting of the waiver.

Sec. 50.

Minnesota Statutes 2008, section 82.29, subdivision 8, is amended to read:

Subd. 8.

Instruction; new licenses.

(a) deleted text begin Everydeleted text end new text begin Annew text end applicant for a salesperson's
license shall be required to successfully complete a course of study in the real estate field
consisting of 30 hours of instruction approved by the commissioner before taking the
examination specified in subdivision 1. deleted text begin Everydeleted text end new text begin Annew text end applicant for a salesperson's license
shall be required to successfully complete an additional course of study in the real estate
field consisting of 60 hours of instruction approved by the commissioner, of which three
hours shall consist of training in state and federal fair housing laws, regulations, and
rules, and of which two hours must consist of training in laws and regulations on agency
representation and disclosure, before filing an application for the license. This subdivision
does not apply to salespeople licensed in Minnesota before July 1, 1969.

(b) An applicant for a broker's license must successfully complete a course of study
in the real estate field consisting of 30 hours of instruction approved by the commissioner,
of which three hours shall consist of training in state and federal fair housing laws,
regulations, and rules. The course must have been completed within 12 months prior to
the date of application for the broker's license.

deleted text begin (c) An applicant for a real estate closing agent's license must successfully complete
a course of study relating to closing services consisting of eight hours of instruction
approved by the commissioner.
deleted text end

Sec. 51.

Minnesota Statutes 2008, section 82.31, subdivision 1, is amended to read:

Subdivision 1.

Qualification of applicants.

deleted text begin Everydeleted text end new text begin Annew text end applicant for a real estate
brokerdeleted text begin ,deleted text end new text begin or new text end real estate salespersondeleted text begin , or real estate closing agentdeleted text end license shall be at least 18
years of age at the time of making application for said license.

Sec. 52.

Minnesota Statutes 2008, section 82.31, subdivision 2, is amended to read:

Subd. 2.

Application for license; contents.

(a) deleted text begin Everydeleted text end new text begin Annew text end applicant for a license
as a real estate brokerdeleted text begin ,deleted text end new text begin or new text end real estate salespersondeleted text begin , or closing agentdeleted text end shall make an
application in deleted text begin writing upon forms prepared and furnisheddeleted text end new text begin the format prescribed new text end by the
commissioner. deleted text begin Eachdeleted text end new text begin Thenew text end application shall be deleted text begin signed and sworn to by the applicant and
shall bedeleted text end accompanied by the license fee required by this chapter.

(b) Each application for a real estate broker licensedeleted text begin ,deleted text end new text begin or new text end real estate salesperson
licensedeleted text begin , or real estate closing agent licensedeleted text end shall contain such information as required
by the commissioner consistent with the administration of the provisions and purposes
of this chapter.

(c) deleted text begin Eachdeleted text end new text begin Thenew text end application for a real estate salesperson license shall give the applicant's
new text begin legal new text end name, age, residence address, and the name and place of business of the real estate
broker on whose behalf the salesperson is to be acting.

deleted text begin (d) Each application for a real estate closing agent license shall give the applicant's
name, age, residence address, and the name and place of business of the closing agent.
deleted text end

deleted text begin (e)deleted text end new text begin (d) new text end The commissioner may require such further information as the commissioner
deems appropriate to administer the provisions and further the purposes of this chapter.

deleted text begin (f) Applicantsdeleted text end new text begin (e) An applicantnew text end for a real estate salesperson license shall submit
to the commissioner, along with the application for licensure, a copy of the course
completion certificate for courses I, II, and IIInew text begin and passing examination resultsnew text end .

Sec. 53.

Minnesota Statutes 2009 Supplement, section 82.31, subdivision 4, is
amended to read:

Subd. 4.

deleted text begin Corporate and partnershipdeleted text end new text begin Business entity; brokeragenew text end licenses.

(a) A deleted text begin corporationdeleted text end new text begin business entitynew text end applying for a license shall have at least one deleted text begin officerdeleted text end new text begin
responsible personnew text end individually licensed to act as broker for the deleted text begin corporationdeleted text end new text begin brokeragenew text end .
The deleted text begin corporationdeleted text end new text begin business entitynew text end broker's license shall extend no authority to act as broker
to any person other than the deleted text begin corporatedeleted text end new text begin businessnew text end entity. Each deleted text begin officerdeleted text end new text begin responsible personnew text end
who intends to act as a broker shall obtain a license.

(b) A deleted text begin partnershipdeleted text end new text begin business entitynew text end applying for a license shall have at least one deleted text begin partnerdeleted text end new text begin
responsible personnew text end individually licensed to act as broker for the deleted text begin partnershipdeleted text end new text begin business entitynew text end .
Each deleted text begin partnerdeleted text end new text begin responsible personnew text end who intends to act as a broker shall obtain a license.

(c) deleted text begin Applicationsdeleted text end new text begin An applicationnew text end for a new text begin business entity new text end license deleted text begin made by a corporation
shall be verified by the president and one other officer. Applications made by a partnershipdeleted text end
shall be verified by at least two deleted text begin partnersdeleted text end new text begin responsible persons for the business entitynew text end .

(d) deleted text begin Any partner or officerdeleted text end new text begin A responsible personnew text end who ceases to act as broker for
a deleted text begin partnership or corporationdeleted text end new text begin business entitynew text end shall notify the commissioner upon said
termination. The individual licenses of all salespersons acting on behalf of a deleted text begin corporation
or partnership,deleted text end new text begin brokerage new text end are automatically ineffective upon the revocation or suspension
of the license of the deleted text begin partnership or corporationdeleted text end new text begin brokeragenew text end . The commissioner may suspend
or revoke the license of deleted text begin an officer or partnerdeleted text end new text begin a responsible person licenseenew text end without
suspending or revoking the license of the deleted text begin corporation or partnershipdeleted text end new text begin business entitynew text end .

(e) The application of all deleted text begin officersdeleted text end new text begin responsible persons new text end of a deleted text begin corporation or partners
in a partnershipdeleted text end new text begin business entitynew text end who intend to act as deleted text begin a brokerdeleted text end new text begin brokersnew text end on behalf of a
deleted text begin corporation or partnershipdeleted text end new text begin business entitynew text end shall accompany the initial license application
of the deleted text begin corporation or partnershipdeleted text end new text begin business entitynew text end . deleted text begin Officers or partnersdeleted text end new text begin Responsible personsnew text end
intending to act as brokers subsequent to the licensing of the deleted text begin corporation or partnershipdeleted text end new text begin
business entitynew text end shall procure an individual real estate broker's license prior to acting in the
capacity of a broker. No deleted text begin corporate officer, or partner,deleted text end new text begin responsible personnew text end who maintains a
salesperson's license may exercise any authority over any trust account administered by
the broker nor may they be vested with any supervisory authority over the broker.

(f) The deleted text begin corporation or partnershipdeleted text end new text begin business entitynew text end applicant shall make available
upon request, such records and data required by the commissioner for enforcement
of this chapter.

(g) The commissioner may require further information, as the commissioner deems
appropriate, to administer the provisions and further the purposes of this chapter.

Sec. 54.

Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:

82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.

(a) All real estate salespersons and all real estate brokers shall be required to
successfully complete 30 hours of real estate continuing education, either as a student or
a lecturer, in courses of study approved by the commissioner, during the initial license
period and during each succeeding 24-month license period. At least 15 of the 30 credit
hours must be completed during the first 12 months of the 24-month licensing period.
Licensees may not claim credit for continuing education not actually completed as of the
date their report of continuing education compliance is filed.

(b) The commissioner may adopt rules defining the standards for course and
instructor approval, and may adopt rules for the proper administration of prelicense
instruction as required under section 82.29, subdivision 8, and continuing education as
required under this section and sections 82.29; 82.31, deleted text begin subdivisionsdeleted text end new text begin subdivision new text end 5 deleted text begin and 6deleted text end ;
82.33, subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course
which can be completed by the student at home or outside the classroom without the
supervision of an instructor except accredited courses using new delivery technology,
including interactive technology, and the Internet. The commissioner may approve
courses of study in the real estate field offered in educational institutions of higher learning
in this state or courses of study in the real estate field developed by and offered under
the auspices of the National Association of Realtors, its affiliates, or private real estate
schools. Courses in motivation, salesmanship, psychology, or time management shall not
be approved by the commissioner for continuing education credit. The commissioner may
approve courses in any other subjects, including, but not limited to, communication,
marketing, negotiation, and technology for continuing education credit.

(c) As part of the continuing education requirements of this section and sections
82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the
commissioner shall require that all real estate brokers and salespersons receive:

(1) at least one hour of training during each license period in courses in laws or
regulations on agency representation and disclosure; and

(2) at least one hour of training during each license period in courses in state and
federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses
designed to help licensees to meet the housing needs of immigrant and other underserved
populations.

Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers
engaged solely in the commercial real estate business who file with the commissioner
a verification of this status along with the continuing education report required under
paragraph (a).

(d) The commissioner is authorized to establish a procedure for renewal of course
accreditation.

(e) Approved continuing education courses may be sponsored or offered by a broker
of a real estate company and may be held on the premises of a company licensed under
this chapter. All continuing education course offerings must be open to any interested
individuals. Access may be restricted by the education provider based on class size
only. Courses must not be approved if attendance is restricted to any particular group of
people. A broker must comply with all continuing education rules prescribed by the
commissioner. The commissioner shall not approve any prelicense instruction courses
offered by, sponsored by, or affiliated with any person or company licensed to engage in
the real estate business.

(f) Credit may not be earned if the licensee has previously obtained credit for the
same course as either a student or instructor during the same licensing period.

(g) The real estate education course completion certificate must be in the form set
forth by the commissioner. Students are responsible for maintaining copies of course
completion certificates.

(h) An approved prelicense 30-hour broker course may be used for continuing
education credit by a real estate salesperson or broker if the course is completed during
the appropriate licensing period.

Sec. 55.

Minnesota Statutes 2008, section 82.33, subdivision 1, is amended to read:

Subdivision 1.

Duration.

deleted text begin Nodeleted text end new text begin Thenew text end renewal of a salesperson's license deleted text begin shall bedeleted text end new text begin is notnew text end
effective beyond a date two years after the granting of deleted text begin suchdeleted text end new text begin thenew text end salesperson's license unless
the salesperson has furnished evidence of compliance with section 82.29, subdivision 8.
The commissioner shall cancel the license of deleted text begin anydeleted text end new text begin anew text end salesperson who fails to comply with
section 82.29, subdivision 8. deleted text begin This subdivision shall not apply to salespeople licensed in
Minnesota prior to July 1, 1969.deleted text end

Sec. 56.

Minnesota Statutes 2008, section 82.33, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Broker's responsibility. new text end

new text begin (a) A broker shall renew the license of each
eligible salesperson who is and will continue to be associated with the broker. For
the purposes of this subdivision, an eligible salesperson is one who has demonstrated
compliance with all renewal requirements before June 15 of the renewal year.
new text end

new text begin (b) When a broker does not intend to renew the license of an eligible salesperson
who is associated with the broker, the broker must notify the salesperson in writing 30
days before June 15 of the renewal year.
new text end

new text begin (c) When the broker responsible for the salesperson's license renewal does not renew
an eligible salesperson's license before the renewal deadline, the broker shall pay on the
salesperson's behalf any additional higher license fees that result.
new text end

Sec. 57.

Minnesota Statutes 2008, section 82.33, subdivision 2, is amended to read:

Subd. 2.

Timely renewals.

deleted text begin Personsdeleted text end new text begin A person new text end whose deleted text begin applications havedeleted text end new text begin application
for a license renewal has not new text end been deleted text begin properly anddeleted text end timely filed new text begin and new text end who deleted text begin havedeleted text end new text begin has new text end not received
notice of deleted text begin denialdeleted text end new text begin approval new text end of renewal deleted text begin are deemed to have been approved for renewal anddeleted text end
may new text begin not new text end continue to transact business either as a real estate broker, salesperson, or closing
agent deleted text begin whether or not the renewed license has been received on or before July 1deleted text end new text begin after June
30 new text end of the renewal yearnew text begin until approval of renewal is receivednew text end . Application for renewal of a
license deleted text begin shall be deemed to have beendeleted text end new text begin isnew text end timely filed if deleted text begin received by the commissioner by, or
mailed with proper postage and postmarked by,deleted text end new text begin :new text end

new text begin (1) all requirements for renewal, including continuing education requirements,
have been completed by new text end June 15 of the renewal yeardeleted text begin . Applications for renewal shall be
deemed properly filed if madedeleted text end new text begin ; andnew text end

new text begin (2) the application is submitted before the renewal deadline in the manner
prescribed by the commissioner new text end upon forms duly executed and sworn to, accompanied
by fees prescribed by this chapternew text begin ,new text end and deleted text begin containdeleted text end new text begin containing new text end any information deleted text begin whichdeleted text end the
commissioner deleted text begin may requiredeleted text end new text begin requiresnew text end .

Sec. 58.

Minnesota Statutes 2008, section 82.34, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) The commissioner shall issue a license as a real estate
brokerdeleted text begin ,deleted text end new text begin or new text end real estate salespersondeleted text begin , or closing agentdeleted text end to any person who qualifies for deleted text begin suchdeleted text end new text begin
thenew text end license under the terms of this chapter.

(b) The commissioner is authorized to establish by rule a special license for real
estate brokers and real estate salespeople engaged solely in the rental or management of
an interest or estate in real estate, to prescribe qualifications for the license, and to issue
the license consistent with the terms of this chapter. This clause shall not be construed to
require those owners or managers or their agents or employees who are excluded by section
82.23, clause (d), from the definition of real estate broker, to obtain the special license.

Sec. 59.

Minnesota Statutes 2008, section 82.34, subdivision 2, is amended to read:

Subd. 2.

Additional broker's license.

An individual who holds a broker's license
in deleted text begin his or herdeleted text end new text begin the broker'snew text end own name or for or on behalf of a deleted text begin corporation or partnershipdeleted text end
new text begin business entity new text end must be issued an additional broker's license only upon demonstratingnew text begin :new text end

new text begin (1) new text end that the additional license is necessary in order to serve a legitimate business
purpose;

new text begin (2) new text end that the broker will be capable of supervising all salespersons over whom deleted text begin he or
shedeleted text end new text begin the brokernew text end will have supervisory responsibility or, in the alternative, that the broker
will have no supervisory responsibilities under the additional license; and

new text begin (3) new text end that the brokernew text begin :new text end

new text begin (i) new text end has deleted text begin a substantialdeleted text end new text begin at least 51 percent new text end ownership interest in each deleted text begin corporation or
partnershipdeleted text end new text begin business entity new text end for or on whose behalf deleted text begin he or shedeleted text end new text begin the brokernew text end holds or will
hold a broker's licensedeleted text begin .deleted text end new text begin ; or
new text end

new text begin (ii) is an elected or appointed officer, signing partner, or managing member of both
the business entity for which or on whose behalf the broker already holds a license, and
an affiliated business entity for which or on whose behalf the broker is applying for an
additional license.
new text end

deleted text begin The requirement of a substantial ownership interest does not apply where the broker
seeking the additional license or licenses is an officer of a corporation for or on whose
behalf the broker already holds a license and the broker is applying for the additional
license or licenses for or on behalf of an affiliated corporation or corporations of which he
or she is also an officer.deleted text end For the purpose of this section and sections 82.31, subdivisions 1
to 4; 82.33, subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, "affiliated deleted text begin corporationdeleted text end new text begin
business entitynew text end " means a deleted text begin corporation which is directly or indirectly controlleddeleted text end new text begin business
entity that is majority-owned new text end by the same persons as the deleted text begin corporationdeleted text end new text begin business entity new text end for
new text begin which new text end or on whose behalf the broker is already licensed to act.

For the purposes of this section and sections 82.31, subdivisions 1 to 4; 82.33,
subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, a legitimate business purpose
includes engaging in a different and specialized area of real estate or maintaining an
existing business name.

Sec. 60.

Minnesota Statutes 2008, section 82.34, subdivision 4, is amended to read:

Subd. 4.

Issuance of license; salesperson.

A salesperson must be licensed to act
on behalf of a licensed broker and may not be licensed to act on behalf of more than
one broker in this state during the same period of time. deleted text begin The license of each real estate
salesperson shall be mailed to and remain in the possession of the licensed broker with
whom the salesperson is or is to be associated until canceled or until such licensee leaves
such broker.
deleted text end

Sec. 61.

Minnesota Statutes 2008, section 82.34, subdivision 5, is amended to read:

Subd. 5.

Effective date of license.

deleted text begin Licensesdeleted text end new text begin A licensenew text end renewed pursuant to this
chapter deleted text begin aredeleted text end new text begin isnew text end valid for a period of 24 months. deleted text begin New licensesdeleted text end new text begin A new licensenew text end issued during a
24-month licensing period will expire on June 30 of the expiration year assigned to the
license. deleted text begin Implementation of the 24-month licensing program must be staggered so that
approximately one-half of the licenses will expire on June 30 of each even-numbered year
and the other one-half on June 30 of each odd-numbered year. Those licensees who will
receive a 12-month license on July 1, 1995, because of the staggered implementation
schedule will pay for the license a fee reduced by an amount equal to one-half the fee
for renewal of the license.
deleted text end

Sec. 62.

Minnesota Statutes 2008, section 82.34, subdivision 13, is amended to read:

Subd. 13.

Limited broker's license.

deleted text begin (a)deleted text end The commissioner shall have the authority
to issue a limited real estate broker's license authorizing the deleted text begin licensee to engage in
transactions as principal only. Such license shall be issued only after receipt of the
application described in section 82.31, subdivision 2, and payment of the fee prescribed
by section 82.24, subdivision 1. No salesperson may be licensed to act on behalf of an
individual holding a limited broker's license. An officer of a corporation or partner of a
partnership licensed as a limited broker may act on behalf of that corporation or partnership
without being subject to the licensing requirements.deleted text end new text begin following limited activities:new text end

deleted text begin (b) A limited broker's license shall also authorize the licensee to engage in
negotiation of mortgage loans, other than residential mortgage loans, as described in
section 82.17, subdivision 18, clause (b).
deleted text end

new text begin (1) the licensee to engage in transactions as principal only; or
new text end

new text begin (2) the licensee to engage in negotiations of mortgage loans, other than residential
mortgage loans, as described in section 82.17, subdivision 18, clause (b).
new text end

new text begin The license may be issued only after receipt of the application described in section
82.31, subdivision 2, and payment of the fee prescribed by section 82.24, subdivision 1. A
salesperson may not be licensed to act on behalf of an individual holding a limited broker's
license. A responsible person of a business entity licensed as a limited broker may act on
behalf of that business entity without being subject to the licensing requirements.
new text end

Sec. 63.

Minnesota Statutes 2008, section 82.39, is amended to read:

82.39 NOTICE TO COMMISSIONER.

Subdivision 1.

deleted text begin Noticedeleted text end new text begin Change of application informationnew text end .

Notice in writing
new text begin or in the format prescribed by the commissioner new text end shall be given to the commissioner by
deleted text begin eachdeleted text end new text begin anew text end licensee of any change deleted text begin indeleted text end new text begin of information contained in the license application on file
with the commissioner, including but not limited to new text end personal name, trade name, address or
business location not later than ten days after deleted text begin suchdeleted text end new text begin thenew text end change. deleted text begin The commissioner shall
issue a new license if required for the unexpired period.
deleted text end

Subd. 2.

Mandatory.

deleted text begin Licenseesdeleted text end new text begin The licenseenew text end shall notify the commissioner new text begin in
writing or in the format prescribed by the commissioner within ten days new text end of the facts in
subdivisions 3 to 5.

Subd. 3.

Civil judgment.

deleted text begin Licenseesdeleted text end new text begin The licenseenew text end must notify the commissioner
in writing deleted text begin within ten daysdeleted text end of a final adverse decision or order of a court, whether or not
the decision or order is appealed, regarding any proceeding in which the licensee was
named as a defendant, and which alleged fraud, misrepresentation, or the conversion of
funds, if the final adverse decision relates to the allegations of fraud, misrepresentation, or
the conversion of funds.

Subd. 4.

Disciplinary action.

The licensee must notify the commissioner in writing
deleted text begin within ten daysdeleted text end of the suspension or revocation of the licensee's real estate or other
occupational license issued by this state or another jurisdiction.

Subd. 5.

Criminal offense.

The licensee must notify the commissioner in writing
deleted text begin within ten daysdeleted text end if the licensee is charged with, adjudged guilty of, or enters a plea of
guilty or nolo contendere to a charge of any felony, or of any gross misdemeanor alleging
fraud, misrepresentation, conversion of funds, or a similar violation of any real estate
licensing law.

Sec. 64.

Minnesota Statutes 2008, section 82.41, subdivision 1, is amended to read:

Subdivision 1.

License required.

No person shall act as a real estate brokerdeleted text begin ,deleted text end
new text begin or real estate new text end salespersondeleted text begin , or real estate closing agentdeleted text end unless licensed as deleted text begin hereindeleted text end providednew text begin
in this sectionnew text end .

Sec. 65.

Minnesota Statutes 2008, section 82.41, subdivision 2, is amended to read:

Subd. 2.

Misrepresenting status as licensee.

No persons shall advertise or
represent themselves to be real estate brokersdeleted text begin , salespeople, or closing agentsdeleted text end new text begin or real estate
salespersonsnew text end unless licensed as deleted text begin hereindeleted text end providednew text begin in this sectionnew text end .

Sec. 66.

Minnesota Statutes 2008, section 82.41, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Limitation on broker when transaction not completed. new text end

new text begin When the
owner fails or is unable to consummate a real estate transaction, through no fault of the
purchaser, the listing broker may not claim any portion of any trust funds deposited with
the broker by the purchaser, absent a separate agreement with the purchaser.
new text end

Sec. 67.

Minnesota Statutes 2008, section 82.45, subdivision 3, is amended to read:

Subd. 3.

Retention.

A licensed real estate broker shall retain for deleted text begin threedeleted text end new text begin six new text end years
copies of all listings, buyer representation and facilitator services contracts, deposit
receipts, purchase money contracts, canceled checks, trust account records, and such
other documents as may reasonably be related to carrying on a real estate brokerage
business. The retention period shall run from the date of the closing of the transaction,
or from the date of the document if the document is not consummated. The following
documents need not be retained:

(1) agency disclosure forms provided to prospective buyers or sellers, where no
contractual relationship is subsequently created and no services are provided by the
licensee; and

(2) facilitator services contracts or buyer representation contracts entered into with
prospective buyers, where the prospective buyer abandons the contractual relationship
before any services have been provided by the licensee.

Sec. 68.

Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Storage. new text end

new text begin Storage of documents identified in subdivision 3 may be stored
by electronic means.
new text end

Sec. 69.

Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Destruction. new text end

new text begin After the retention period specified in subdivision 3 has
elapsed and the broker no longer wishes to retain the documents, the broker must ensure
that the documents are disposed of according to the confidential record destruction
procedures of the Fair and Accurate Credit Transaction Act of 2003, Public Law 108-159.
new text end

Sec. 70.

Minnesota Statutes 2008, section 82.48, subdivision 2, is amended to read:

Subd. 2.

Penalty for noncompliance.

The methods, acts, or practices set forth in
subdivisions 1 and 3 and sections 82.19; 82.22; 82.27; deleted text begin 82.31, subdivision 6;deleted text end 82.37; and
82.41, subdivision 11, are standards of conduct governing the activities of real estate
brokers and salespersons. Failure to comply with these standards shall constitute grounds
for license denial, suspension, or revocation, or for censure of the licensee.

Sec. 71.

Minnesota Statutes 2008, section 82.48, subdivision 3, is amended to read:

Subd. 3.

Responsibilities of brokers.

(a) Supervision of personnel. deleted text begin Brokersdeleted text end new text begin A
brokernew text end shall adequately supervise the activities of deleted text begin theirdeleted text end new text begin the broker'snew text end salespersons and
employees. Supervision includes the ongoing monitoring of listing agreements, purchase
agreements, other real estate-related documents which are prepared or drafted by the
broker's salespersons or employees or which are otherwise received by the broker's office,
and the review of all trust account books and records. If an individual broker maintains
more than one place of business, each place of business shall be under the broker's direction
and supervision. If a deleted text begin partnership or corporate brokerdeleted text end new text begin brokerage new text end maintains more than one
place of business, each place of business shall be under the direction and supervision of an
individual broker licensed to act on behalf of the deleted text begin partnership or corporationdeleted text end new text begin brokeragenew text end .

The primary broker shall maintain records specifying the name of each broker
responsible for the direction and supervision of each place of business. If an individual
broker, who may be the primary broker, is responsible for supervising more than one
place of business, the primary broker shall, upon written request of the commissioner,
file a written statement specifying the procedures which have been established to ensure
that all salespersons and employees are adequately supervised. Designation of another
broker to supervise a place of business does not relieve the primary broker of the ultimate
responsibility for the actions of licensees.

(b) Preparation and safekeeping of documents. deleted text begin Brokers shall bedeleted text end new text begin A broker isnew text end
responsible for the preparation, custody, safety, and accuracy of all real estate contracts,
documents, and records, even though another person may be assigned these duties by
the broker.

(c) Documentation and resolution of complaints. deleted text begin Brokersdeleted text end new text begin A brokernew text end shall
investigate and attempt to resolve complaints made regarding the practices of any
individual licensed to deleted text begin themdeleted text end new text begin the brokernew text end and shall maintain, with respect to each individual
licensed to deleted text begin themdeleted text end new text begin the brokernew text end , a complaint file containing all material relating to any
complaints received in writing for a period of three years.

(d) Disclosure of listed property information. A broker may allow any unlicensed
person, who is authorized by the broker, to disclose any factual information pertaining
to the properties listed with the broker, if the factual information is provided to the
unlicensed person in written form by the broker representing or assisting the seller(s).

Sec. 72.

new text begin [82.52] ADVERTISING REQUIREMENTS.
new text end

new text begin A licensee shall identify himself or herself as either a broker or an agent salesperson
in any advertising for the purchase, sale, lease, exchange, mortgaging, transfer, or other
disposition of real property, whether the advertising pertains to the licensee's own property
or the property of others.
new text end

new text begin If a salesperson or broker is part of a team or group within the brokerage, the licensee
may include the team or group name in the advertising only under the following conditions:
new text end

new text begin (1) the inclusion of the team or group name is authorized by the primary broker of
the brokerage to which the salesperson or broker is licensed; and
new text end

new text begin (2) the real estate brokerage name is included and more prominently displayed than
the team or group name in the advertising.
new text end

Sec. 73.

new text begin [82.53] REAL ESTATE CLOSING AGENT LICENSING.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioner shall issue a license as a closing agent
to a person who qualifies for the license under the terms of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Qualification of applicants. new text end

new text begin An applicant for a real estate closing agent
license must be at least 18 years of age at the time of making application for the license.
new text end

new text begin Subd. 3. new text end

new text begin Application for license; contents. new text end

new text begin (a) An applicant for a real estate closing
agent license shall make an application in the format prescribed by the commissioner. The
application must be accompanied by the license fee required by this chapter.
new text end

new text begin (b) An application for a real estate closing agent license must contain the information
required by the commissioner consistent with this chapter.
new text end

new text begin (c) An application for a real estate closing agent license shall give the applicant's
legal name, age, residence address, and the name and place of business of the closing agent.
new text end

new text begin (d) The commissioner may require further information the commissioner considers
appropriate to administer this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Instruction. new text end

new text begin An applicant for a real estate closing agent's license must
successfully complete a course of study relating to closing services consisting of eight
hours of instruction approved by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Change of application information. new text end

new text begin The commissioner must be notified
in the format prescribed by the commissioner of a change of information contained in the
license application on file with the commissioner within ten days of the change.
new text end

new text begin Subd. 6. new text end

new text begin Exemption. new text end

new text begin The following persons, when acting as closing agents, are
exempt from the requirements of sections 82.41 and 82.50 unless otherwise required
in this chapter:
new text end

new text begin (1) a direct employee of a title insurance company authorized to do business in this
state, or a direct employee of a title company, or a person who has an agency agreement
with a title insurance company or a title company in which the agent agrees to perform
closing services on the title insurance company's or title company's behalf and the title
insurance company or title company assumes responsibility for the actions of the agent as
if the agent were a direct employee of the title insurance company or title company;
new text end

new text begin (2) a licensed attorney or a direct employee of a licensed attorney;
new text end

new text begin (3) a licensed real estate broker or salesperson;
new text end

new text begin (4) a direct employee of a licensed real estate broker if the broker maintains all funds
received in connection with the closing services in the broker's trust account;
new text end

new text begin (5) a bank, trust company, savings association, credit union, industrial loan and thrift
company, regulated lender under chapter 56, public utility, or land mortgage or farm loan
association organized under the laws of this state or the United States, when engaged in
the transaction of businesses within the scope of its corporate powers as provided by law;
new text end

new text begin (6) a title insurance company authorized to do business in this state; and
new text end

new text begin (7) a title company that has a contractual agency relationship with a title insurance
company authorized to do business in this state, where the title insurance company
assumes responsibility for the actions of the title company and its employees or agents as
if they were employees or agents of the title insurance company.
new text end

Sec. 74.

new text begin [82.54] OTHER DISCLOSURE REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Agent of broker disclosure. new text end

new text begin A salesperson shall only conduct
business under the licensed name of and on behalf of the broker to whom the salesperson
is licensed. An individual broker shall only conduct business under the brokerage's
licensed name. A broker licensed to a business entity shall only conduct business under
the licensed business entity name. A licensee shall affirmatively disclose, before the
negotiation or consummation of any transaction, the licensed name of the brokerage under
whom the licensee is authorized to conduct business according to this section.
new text end

new text begin Subd. 2. new text end

new text begin Financial interests or relative or business associate disclosure;
licensee. new text end

new text begin (a) Before the negotiation or consummation of any transaction, a licensee shall
affirmatively disclose to the owner of real property that the licensee is a real estate broker
or agent salesperson, and in what capacity the licensee is acting, if the licensee directly, or
indirectly through a third party, purchases for himself or herself or acquires, or intends to
acquire, any interest in, or any option to purchase, the owner's property.
new text end

new text begin (b) When a principal in the transaction is a licensee or a relative or business associate
of the licensee, that fact must be disclosed in writing.
new text end

new text begin Subd. 3. new text end

new text begin Material facts. new text end

new text begin (a) A licensee shall disclose to a prospective purchaser
all material facts of which the licensee is aware, which could adversely and significantly
affect an ordinary purchaser's use or enjoyment of the property, or any intended use of the
property of which the licensee is aware.
new text end

new text begin (b) It is not a material fact relating to real property offered for sale the fact or
suspicion that the property:
new text end

new text begin (1) is or was occupied by an owner or occupant who is or was suspected
to be infected with human immunodeficiency virus or diagnosed with acquired
immunodeficiency syndrome;
new text end

new text begin (2) was the site of a suicide, accidental death, natural death, or perceived paranormal
activity; or
new text end

new text begin (3) is located in a neighborhood containing any adult family home, community-based
residential facility, or nursing home.
new text end

new text begin (c) A licensee or employee of the licensee has no duty to disclose information
regarding an offender who is required to register under section 243.166, or about whom
notification is made under that section, if the broker or salesperson, in a timely manner,
provides a written notice that information about the predatory offender registry and
persons registered with the registry may be obtained by contacting local law enforcement
where the property is located or the Department of Corrections.
new text end

new text begin (d) A licensee or employee of the licensee has no duty to disclose information
regarding airport zoning regulations if the broker or salesperson, in a timely manner,
provides a written notice that a copy of the airport zoning regulations as adopted can be
reviewed or obtained at the office of the county recorder where the zoned area is located.
new text end

new text begin (e) A licensee is not required to disclose, except as otherwise provided in paragraph
(f), information relating to the physical condition of the property or any other information
relating to the real estate transaction, if a written report that discloses the information has
been prepared by a qualified third party and provided to the person. For the purposes of
this paragraph, "qualified third party" means a federal, state, or local governmental agency,
or any person whom the broker, salesperson, or a party to the real estate transaction
reasonably believes has the expertise necessary to meet the industry standards of practice
for the type of inspection or investigation that has been conducted by the third party
in order to prepare the written report and who is acceptable to the person to whom the
disclosure is being made.
new text end

new text begin (f) A licensee shall disclose to the parties to a real estate transaction any facts known
by the broker or salesperson that contradict any information included in a written report
described in paragraph (e), if a copy of the report is provided to the licensee.
new text end

new text begin (g) The limitation on disclosures in paragraphs (b) and (c) shall modify any common
law duties with respect to disclosure of material facts.
new text end

new text begin Subd. 4. new text end

new text begin Nonperformance of party. new text end

new text begin If a licensee is put on notice by a party to a
real estate transaction that the party will not perform according to the terms of a purchase
agreement or other similar written agreement to convey real estate, the licensee shall
immediately disclose the fact of that party's intent not to perform to the other party or
parties to the transaction. The licensee shall, if reasonably possible, inform the party who
will not perform of the licensee's obligation to disclose this fact to the other party or
parties to the transaction before making the disclosure. The obligation required by this
section does not apply to notice of a party's inability to keep or fulfill any contingency to
which the real estate transaction has been made subject.
new text end

Sec. 75.

Minnesota Statutes 2008, section 82B.05, as amended by Laws 2009, chapter
63, section 62, is amended to read:

82B.05 REAL ESTATE APPRAISER ADVISORY BOARD.

Subdivision 1.

Members.

The Real Estate Appraiser Advisory Board consists of
deleted text begin 15deleted text end new text begin ninenew text end members appointed by the commissioner of commerce. Three of the members
must be deleted text begin public members, four must bedeleted text end consumers of appraisal services, new text begin of whom one
member must be employed in the financial lending industry, new text end and deleted text begin eightdeleted text end new text begin six new text end must be real
estate appraisers new text begin who are currently licensed in good standing, new text end of whom deleted text begin not less than twodeleted text end
new text begin three new text end members must be deleted text begin trainee real property appraisers, licensed real property appraisers,
ordeleted text end certified residential real property appraisersdeleted text begin , not less than twodeleted text end new text begin and three new text end members must
be certified general real property appraisersdeleted text begin , and not less thandeleted text end new text begin . At leastnew text end one member new text begin of the
board new text end must be certified by the Appraisal Qualification Board of the Appraisal Foundation
to teach the Uniform Standards of Professional Appraisal Practice. The board is governed
by section 15.0575.

Subd. 3.

Terms.

The term of office for members is three years.

Upon expiration of their terms, members of the board shall continue to hold office
until the appointment and qualification of their successors. No person may serve as a
member of the board for more than two consecutive terms. The commissioner may
remove a member for cause.

deleted text begin Subd. 4. deleted text end

deleted text begin Practice of public members prohibited. deleted text end

deleted text begin The public members of the board
may not be engaged in the practice of real estate appraising.
deleted text end

Subd. 5.

Conduct of meetings.

Places of regular board meetings must be decided
by the vote of members. Written notice must be given to each member of the time and
place of each meeting of the board at least ten days before the scheduled date of regular
board meetings. The board shall establish procedures for emergency board meetings and
other operational procedures, subject to the approval of the commissioner.

The members of the board shall elect a chair new text begin to preside at board meetings, a
vice-chair, and a secretary new text end from among the members deleted text begin to preside at board meetingsdeleted text end .

A quorum of the board is deleted text begin eightdeleted text end new text begin five new text end members.

The board shall meet at least once every deleted text begin sixdeleted text end new text begin three new text end months as determined by a
majority vote of the members or a call of the commissioner.

Subd. 6.

Compensation.

Each member of the board is entitled to a per diem
allowance of $35 for each meeting of the board at which the member is present and for each
day or substantial part of a day actually spent in the conduct of the business of the board,
plus all appropriate expenses unless a greater amount is authorized by section 15.0575.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 76.

Minnesota Statutes 2008, section 326.3382, subdivision 3, is amended to read:

Subd. 3.

Proof of insurance.

(a) No license may be issued to a private detective
or protective agent applicant until the applicant has complied with the requirements in
this subdivision.

(b) The applicant shall execute a surety bond to the state of Minnesota in the penal
sum of $10,000 and file it with the board. The surety bond must be executed by a
company authorized to do business in the state of Minnesota, must name the applicant as
principal, and must state that the applicant and each of the applicant's employees shall
faithfully observe all of the laws of Minnesota and of the United States and shall pay all
damages suffered by any person by reason of a violation of law by the applicant or by the
commission of any willful and malicious wrong by the applicant in the course of business.

(c) The applicant shall furnish proof, acceptable to the board, of the applicant's
ability to respond in damages for liability on account of accidents or wrongdoings arising
out of the ownership and operation of a private detective or protective agent business.
Compliance with paragraph (d), (e), or (f) is satisfactory proof of financial responsibility
for purposes of this paragraph.

(d) The applicant may file with the board a certificate of insurance demonstrating
coverage for general liability, completed operations, and personal injury. Personal injury
insurance must include coverage for:

(1) false arrest, detention, imprisonment, and malicious prosecution;

(2) libel, slander, defamation, and violation of rights of privacy; and

(3) wrongful entry, eviction, and other invasion of rights of private occupancy.

deleted text begin The certificate must provide that the insurance may not be modified or canceled
unless 30 days prior notice is given to the board. deleted text end new text begin In the event of a policy cancellation,
the insurer will send notice to the board at the same time that a cancellation request is
received from or a notice is sent to the insured.
new text end

(e) The applicant may file with the board an annual net worth statement, signed
by a licensed certified public accountant, evidencing that the applicant has a net worth
of at least the following:

(1) for an applicant with no employees, $10,000;

(2) for an applicant with one to ten employees, $15,000;

(3) for an applicant with 11 to 25 employees, $25,000;

(4) for an applicant with 26 to 50 employees, $50,000; or

(5) for an applicant with 51 or more employees, $100,000.

Data indicating with which of the above requirements an applicant must comply is
public data. The contents of the net worth statement are private data on individuals or
nonpublic data, as defined in section 13.02.

(f) The applicant may file with the board an irrevocable letter of credit from a
financial institution acceptable to the board in the amount listed in the appropriate
category in paragraph (e).

Sec. 77.

Minnesota Statutes 2008, section 326B.33, subdivision 16, is amended to read:

Subd. 16.

Insurance required.

Each contractor shall have and maintain in effect
general liability insurance, which includes premises and operations insurance and products
and completed operations insurance, with limits of at least $100,000 per occurrence,
$300,000 aggregate limit for bodily injury, and property damage insurance with limits of
at least $50,000 or a policy with a single limit for bodily injury and property damage of
$300,000 per occurrence and $300,000 aggregate limits. Such insurance shall be written
by an insurer licensed to do business in the state of Minnesota and each contractor shall
maintain on file with the commissioner a certificate evidencing such insurance deleted text begin which
provides that such insurance shall not be canceled without the insurer first giving 15
days written notice to the commissioner of such cancellationdeleted text end .new text begin In the event of a policy
cancellation, the insurer shall send written notice to the commissioner at the same time
that a cancellation request is received from or a notice is sent to the insured.
new text end

Sec. 78.

Minnesota Statutes 2009 Supplement, section 326B.46, subdivision 2, is
amended to read:

Subd. 2.

Bond; insurance.

Any person contracting to do plumbing work must give
bond to the state in the amount of at least $25,000 for (1) all plumbing work entered
into within the state or (2) all plumbing work and subsurface sewage treatment work
entered into within the state. If the bond is for both plumbing work and subsurface sewage
treatment work, the bond must comply with the requirements of this section and section
115.56, subdivision 2, paragraph (e). The bond shall be for the benefit of persons injured
or suffering financial loss by reason of failure to comply with the requirements of the
State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage
treatment work, financial loss by reason of failure to comply with the requirements of
sections 115.55 and 115.56. The bond shall be filed with the commissioner and shall be
written by a corporate surety licensed to do business in the state.

In addition, each applicant for a master plumber license or restricted master plumber
license, or renewal thereof, shall provide evidence of public liability insurance, including
products liability insurance with limits of at least $50,000 per person and $100,000 per
occurrence and property damage insurance with limits of at least $10,000. The insurance
shall be written by an insurer licensed to do business in the state of Minnesota and
each licensed master plumber shall maintain on file with the commissioner a certificate
evidencing the insurance deleted text begin providing that the insurance shall not be canceled without the
insurer first giving 15 days written notice to the commissioner. The term of the insurance
shall be concurrent with the term of the licensedeleted text end .new text begin In the event of a policy cancellation, the
insurer shall send written notice to the commissioner at the same time that a cancellation
request is received from or a notice is sent to the insured.
new text end

Sec. 79.

Minnesota Statutes 2008, section 326B.56, subdivision 2, is amended to read:

Subd. 2.

Insurance.

(a) Each applicant for a water conditioning contractor or
installer license or renewal thereof who is required by any political subdivision to
maintain insurance to obtain or maintain the license may comply with any political
subdivision's insurance requirement by maintaining the insurance described in paragraph
(b). No applicant for a water conditioning contractor or installer license who maintains the
insurance described in paragraph (b) shall be otherwise required to meet the insurance
requirements of any political subdivision.

(b) The insurance shall provide coverage, including products liability coverage,
for all damages in connection with licensed work for which the licensee is liable, with
personal damage limits of at least $50,000 per person and $100,000 per occurrence and
property damage insurance with limits of at least $10,000. The insurance shall be written
by an insurer licensed to do business in this state and a certificate evidencing the insurance
shall be filed with the commissioner. The insurance must remain in effect at all times while
the application is pending and while the license is in effect. deleted text begin The insurance shall not be
canceled without the insurer first giving 15 days' written notice to the commissioner.deleted text end new text begin In the
event of a policy cancellation, the insurer shall send written notice to the commissioner at
the same time that a cancellation request is received from or a notice is sent to the insured.
new text end

Sec. 80.

Minnesota Statutes 2008, section 326B.86, subdivision 2, is amended to read:

Subd. 2.

Insurance.

Each licensee shall have and maintain in effect commercial
general liability insurance, which includes premises and operations insurance and products
and completed operations insurance, with limits of at least $100,000 per occurrence,
$300,000 aggregate limit for bodily injury, and property damage insurance with limits of
at least $25,000 or a policy with a single limit for bodily injury and property damage of
$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written by
an insurer licensed to do business in this state. Each licensee shall maintain on file with
the commissioner a certificate evidencing the insurance deleted text begin which provides that the insurance
shall not be canceled without the insurer first giving 15 days' written notice of cancellation
to the commissionerdeleted text end .new text begin In the event of a policy cancellation, the insurer shall send written
notice to the commissioner at the same time that a cancellation request is received from or
a notice is sent to the insured.new text end The commissioner may increase the minimum amount of
insurance required for any licensee or class of licensees if the commissioner considers it to
be in the public interest and necessary to protect the interests of Minnesota consumers.

Sec. 81.

Minnesota Statutes 2008, section 326B.921, subdivision 6, is amended to read:

Subd. 6.

Insurance.

In addition to the bond described in subdivision 5, each
applicant for a high pressure pipefitting business license or renewal shall have in force
public liability insurance, including products liability insurance, with limits of at least
$100,000 per person and $300,000 per occurrence and property damage insurance with
limits of at least $50,000.

The insurance must be kept in force for the entire term of the high pressure
pipefitting business license, and the license shall be suspended by the department if at any
time the insurance is not in force.

The insurance must be written by an insurer licensed to do business in the state and
shall be in lieu of any other insurance required by any subdivision of government for high
pressure pipefitting. Each person holding a high pressure pipefitting business license shall
maintain on file with the department a certificate evidencing the insurance. deleted text begin Any purported
cancellation of insurance shall not be effective without the insurer first giving 30 days'
written notice to the department.deleted text end new text begin In the event of a policy cancellation, the insurer shall
send written notice to the commissioner at the same time that a cancellation request is
received from or a notice is sent to the insured.
new text end

Sec. 82.

Minnesota Statutes 2008, section 327B.04, subdivision 4, is amended to read:

Subd. 4.

License prerequisites.

No application shall be granted nor license issued
until the applicant proves to the commissioner that:

(a) the applicant has a permanent, established place of business at each licensed
location. An "established place of business" means a permanent enclosed building other
than a residence, or a commercial office space, either owned by the applicant or leased by
the applicant for a term of at least one year, located in an area where zoning regulations
allow commercial activity, and where the books, records and files necessary to conduct
the business are kept and maintained. The owner of a licensed manufactured home park
who resides in or adjacent to the park may use the residence as the established place of
business required by this subdivision, unless prohibited by local zoning ordinance.

If a license is granted, the licensee may use unimproved lots and premises for sale,
storage, and display of manufactured homes, if the licensee first notifies the commissioner
in writing;

(b) if the applicant desires to sell, solicit or advertise the sale of new manufactured
homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor
of the new manufactured home it proposes to deal in;

(c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each
agency and each subagency location that bears the applicant's name and the name under
which the applicant will be licensed and do business in this state. Each bond is for the
protection of consumer customers, and must be executed by the applicant as principal and
issued by a surety company admitted to do business in this state. Each bond shall be
exclusively for the purpose of reimbursing consumer customers and shall be conditioned
upon the faithful compliance by the applicant with all of the laws and rules of this state
pertaining to the applicant's business as a dealer or manufacturer, including sections
325D.44, 325F.67 and 325F.69, and upon the applicant's faithful performance of all its
legal obligations to consumer customers; and (2) a certificate of liability insurance in
the amount of $1,000,000 that provides aggregate coverage for the agency and each
subagency locationnew text begin . In the event of a policy cancellation, the insurer shall send written
notice to the commissioner at the same time that a cancellation request is received from
or a notice is sent to the insurednew text end ;

(d) the applicant has established a trust account as required by section 327B.08,
subdivision 3, unless the applicant states in writing its intention to limit its business to
selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and

(e) the applicant has provided evidence of having had at least two years' prior
experience in the sale of manufactured homes, working for a licensed dealer.

Sec. 83.

new text begin [332.3351] EXEMPTION FROM LICENSURE.
new text end

new text begin A collection agency shall be exempt from the licensing and registration requirements
of this chapter if all of the following conditions are met:
new text end

new text begin (1) the agency is located in another state that regulates and licenses collection
agencies, but does not require a Minnesota collection agency to obtain a license to collect
debts in their state if the agency's collection activities are limited in the same manner;
new text end

new text begin (2) the agency's collection activities are limited to collecting debts not incurred in
this state from consumers located in this state; and
new text end

new text begin (3) the agency's collection activities in Minnesota are conducted by means of
interstate communications, including telephone, mail, electronic mail, or facsimile
transmission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 84.

Minnesota Statutes 2008, section 332.34, is amended to read:

332.34 BOND.

The commissioner of commerce shall require each collection agency licensee to
deleted text begin annuallydeleted text end file and maintain in force a corporate surety bond, in a form to be prescribed
by, and acceptable to, the commissioner, and in a sum of at least deleted text begin $20,000deleted text end new text begin $50,000 plus
an additional $5,000 for each $100,000 received by the collection agency from debtors
located in Minnesota during the previous calendar year, less commissions earned by the
collection agency on those collections for the previous calendar year. The total amount of
the bond shall not exceed $100,000new text end . A collection agency may deposit cash in and with a
depository acceptable to the commissioner in an amount and in the manner prescribed and
approved by the commissioner in lieu of a bond.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for bonds obtained or renewed after
January 1, 2011.
new text end

Sec. 85.

Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to read:

Subdivision 1.

Insurance required.

new text begin (a) new text end No retail license may be issued, maintained
or renewed unless the applicant demonstrates proof of financial responsibility with regard
to liability imposed by section 340A.801. The issuing authority must submit to the
commissioner the applicant's proof of financial responsibility. This subdivision does not
prohibit a local unit of government from requiring higher insurance or bond coverages, or
a larger deposit of cash or securities. The minimum requirement for proof of financial
responsibility may be given by filing:

(1) a certificate that there is in effect for the license period an insurance policy
issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by
an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or
pool providing at least $50,000 of coverage because of bodily injury to any one person in
any one occurrence, $100,000 because of bodily injury to two or more persons in any one
occurrence, $10,000 because of injury to or destruction of property of others in any one
occurrence, $50,000 for loss of means of support of any one person in any one occurrence,
and $100,000 for loss of means of support of two or more persons in any one occurrence;

(2) a bond of a surety company with minimum coverages as provided in clause (1); or

(3) a certificate of the commissioner of management and budget that the licensee
has deposited with the commissioner of management and budget $100,000 in cash or
securities which may legally be purchased by savings banks or for trust funds having a
market value of $100,000.

new text begin (b) new text end This subdivision does not prohibit an insurer from providing the coverage
required by this subdivision in combination with other insurance coverage.

new text begin (c) new text end An annual aggregate policy limit for dram shop insurance of not less than
$300,000 per policy year may be included in the policy provisions.

new text begin (d) new text end A liability insurance policy required by this section must provide that it may
not be canceled for:

(1) any cause, except for nonpayment of premium, by either the insured or the
insurer unless the canceling party has first given deleted text begin 30deleted text end new text begin 60new text end days' notice in writing to the
deleted text begin issuing authoritydeleted text end new text begin insurednew text end of intent to cancel the policy; deleted text begin and
deleted text end

(2) nonpayment of premium unless the canceling party has first given ten days'
notice in writing to the deleted text begin issuing authoritydeleted text end new text begin insurednew text end of intent to cancel the policydeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) in the event of a policy cancellation, the insurer will send notice to the issuing
authority at the same time that a cancellation request is received from or a notice is sent
to the insured.
new text end

Sec. 86.

Laws 2007, chapter 147, article 12, section 14, is amended to read:

Sec. 14. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR
FARMERS.

deleted text begin Subdivision 1. deleted text end

deleted text begin Pilot project requirements. deleted text end

Notwithstanding contrary provisions
of Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance deleted text begin pilot
projectdeleted text end new text begin plan new text end administered by deleted text begin a trust sponsored bydeleted text end one or more agricultural cooperatives
organized under Minnesota Statutes, chapter 308A, deleted text begin ordeleted text end new text begin 308B, new text end under a federal charternew text begin , or a
not-for-profit association of cooperatives, or any combination of these organizations, new text end for
the purpose of offering health coverage to members of the cooperatives and their families,
provided the deleted text begin projectdeleted text end new text begin plan new text end satisfies the other requirements of Minnesota Statutes, chapter
62Hnew text begin , except as otherwise provided in this sectionnew text end :

(1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply;

(2) the notice period required under Minnesota Statutes, section 62H.02, paragraph
(e), is 90 days;

(3) a joint self-insurance plan may elect to treat the sale of a health plan to or for
an employer that has only one eligible employee who has not waived coverage as the
sale of an individual health plan as allowed under Minnesota Statutes, section 62L.02,
subdivision 26;

(4) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), applies; deleted text begin and
deleted text end

(5) the deleted text begin trustdeleted text end new text begin plan new text end must pay the assessment for the Minnesota Comprehensive Health
Association as provided under Minnesota Statutes, section 62E.11new text begin ; and
new text end

new text begin (6) the financial solvency, stop-loss, and reserve requirements established under
chapter 62H and the rules adopted under it, and other laws and rules relating to finance
and solvency of health plans that are cross-referenced in chapter 62H do not apply if the
joint self-insurance plan obtains or arranges for a combination of insurance coverage and
individual and aggregate stop-loss coverage that protect the plan against at least 95 percent
of the total risk assumed by the plan, its sponsors, and its members, including coverage
or reserves adequate to pay incurred but not paid claims on the termination of the plan.
The commissioner shall grant a limited Minnesota stop-loss carrier license to a carrier
or carriers not currently licensed in the state for purposes of providing insurance and
stop-loss coverage to the joint self-insurance plan, provided the carrier or carriers enter
into an agreement with the commissioner of commerce under which the carriers agree to
submit to the limited jurisdiction of the commissioner pertaining to their insurance and
stop-loss coverage for the joint self-insurance program. Notwithstanding other laws to
the contrary, insurance and stop-loss coverage provided under this section to the plan, its
sponsors, or the persons enrolled in the plan shall be deemed by the commissioner to be
stop-loss coverage for a joint self-insurance plan authorized under this section and shall
not be considered health insurance under Minnesota lawnew text end .

deleted text begin Subd. 2. deleted text end

deleted text begin Evaluation and renewal. deleted text end

deleted text begin The pilot project authorized under this section
is for a period of four years from the date of initial enrollment. The commissioner of
commerce shall grant an extension of four additional years if the trust provides evidence
that it remains in compliance with the requirements of this section and other applicable
laws and rules. If the commissioner determines that the operation of the trust has not
improved access, expanded health plan choices, or improved the affordability of health
coverage for farm families, or that it has significantly damaged access, choice, or
affordability for other consumers not enrolled in the trust, the commissioner shall provide
at least 180 days' advance written notice to the trust and to the chairs of the senate and
house finance and policy committees with jurisdiction over health and insurance of the
commissioner's intention not to renew the pilot project at the expiration of a four-year
period.
deleted text end

Sec. 87. new text begin 2011 APPOINTMENTS TO REAL ESTATE APPRAISER ADVISORY
BOARD.
new text end

new text begin The terms of all members of the Real Estate Appraiser Advisory Board expire the
effective date of this section. The commissioner of commerce shall, as soon as practicable
after this date, appoint members to an initial term of office as follows: three years for one
consumer of appraisal services member, one certified residential real property appraiser
member, and one certified general real property appraiser member; two years for one
consumer of appraisal services member, one certified residential real property appraiser
member, and one certified general real property appraiser member; and one year for one
consumer of appraisal services member, one certified residential real property appraiser
member, and one certified general real property appraiser member.
new text end

new text begin Upon the expiration of the term of office established in this section, the successor
must be appointed pursuant to Minnesota Statutes, section 82B.05.
new text end

new text begin All provisions of Minnesota Statutes, section 82B.05, not inconsistent with this
section apply to the initial board appointed pursuant to this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 88. new text begin COORDINATION OF BENEFITS STUDY.
new text end

new text begin The commissioner of commerce, in consultation with the commissioner of
health and health plan companies, shall consider the appropriateness of adopting the
National Association of Insurance Commissioners 2005 Coordination of Benefits Model
Regulation. The commissioner shall submit recommendations and draft legislation, if any,
needed to implement the recommendations, to the legislature by January 15, 2011.
new text end

Sec. 89. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 82.19, subdivision 3; 82.22, subdivisions 1, 6, 7,
8, and 9; 82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3 and 7; 332.31,
subdivision 7; and 332.335, new text end new text begin are repealed.
new text end

new text begin Minnesota Statutes 2009 Supplement, section 65B.133, subdivision 3; and 72B.02,
subdivision 11, new text end new text begin are repealed.
new text end

new text begin Minnesota Statutes 2008, section 72B.04, new text end new text begin is repealed effective July 1, 2010.
new text end

ARTICLE 2

MINNESOTA S.A.F.E. MORTGAGE LICENSING ACT OF 2010

Section 1.

new text begin [58A.01] TITLE.
new text end

new text begin This chapter may be cited as the "Minnesota Secure and Fair Enforcement for
Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of
2010."
new text end

Sec. 2.

new text begin [58A.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the definitions in
subdivisions 2 to 15 have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Depository institution. new text end

new text begin "Depository institution" has the meaning given in
United States Code, title 12, section 1813, and includes a credit union.
new text end

new text begin Subd. 3. new text end

new text begin Federal banking agencies. new text end

new text begin "Federal banking agencies" means the Board
of Governors of the Federal Reserve System, the comptroller of the currency, the director
of the Office of Thrift Supervision, the National Credit Union Administration, and the
Federal Deposit Insurance Corporation.
new text end

new text begin Subd. 4. new text end

new text begin Immediate family member. new text end

new text begin "Immediate family member" means a spouse,
child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren,
stepsiblings, and adoptive relationships.
new text end

new text begin Subd. 5. new text end

new text begin Individual. new text end

new text begin "Individual" means a natural person.
new text end

new text begin Subd. 6. new text end

new text begin Loan processor or underwriter. new text end

new text begin "Loan processor or underwriter" means
an individual who performs clerical or support duties as an employee at the direction
of and subject to the supervision and instruction of a person licensed or exempt from
licensing under chapter 58. For purposes of this subdivision, the term "clerical or support
duties" may include after the receipt of an application:
new text end

new text begin (1) the receipt, collection, distribution, and analysis of information common for the
processing or underwriting of a residential mortgage loan; and
new text end

new text begin (2) communicating with a consumer to obtain the information necessary for the
processing or underwriting of a loan, to the extent that the communication does not include
offering or negotiating loan rates or terms, or counseling consumers about residential
mortgage loan rates or terms.
new text end

new text begin Subd. 7. new text end

new text begin Mortgage loan originator. new text end

new text begin "Mortgage loan originator":
new text end

new text begin (1) means an individual who for compensation or gain or in the expectation of
compensation or gain:
new text end

new text begin (i) takes a residential mortgage loan application; or
new text end

new text begin (ii) offers or negotiates terms of a residential mortgage loan;
new text end

new text begin (2) does not include an individual engaged solely as a loan processor or underwriter
except as otherwise provided in section 58A.03, subdivision 3;
new text end

new text begin (3) does not include a person or entity that only performs real estate brokerage
activities and is licensed or registered according to Minnesota law, unless the person or
entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or
by an agent of the lender, mortgage broker, or other mortgage loan originator;
new text end

new text begin (4) does not include a person or entity solely involved in extensions of credit
relating to timeshare plans, as that term is defined in United States Code, title 11, section
101(53D); and
new text end

new text begin (5) does not include a licensed manufactured home retailer, licensed limited retailer,
or salesperson selling manufactured or modular homes, provided that person only assists
the consumer in filling out a loan application and does not offer or negotiate loan rates or
terms, does not do any counseling with consumers about residential mortgage loan rates
or terms, and does not receive any payment or fee from any company or individual for
assisting the consumer.
new text end

new text begin Subd. 8. new text end

new text begin Nationwide Mortgage Licensing System and Registry. new text end

new text begin "Nationwide
Mortgage Licensing System and Registry" means a mortgage licensing system developed
and maintained by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for the licensing and registration of
licensed mortgage loan originators.
new text end

new text begin Subd. 9. new text end

new text begin Nontraditional mortgage product. new text end

new text begin "Nontraditional mortgage product"
means a mortgage product other than a 30-year fixed rate mortgage loan.
new text end

new text begin Subd. 10. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, corporation, company, limited
liability company, partnership, or association.
new text end

new text begin Subd. 11. new text end

new text begin Real estate brokerage activity. new text end

new text begin "Real estate brokerage activity" means
an activity that involves offering or providing real estate brokerage services to the public,
including:
new text end

new text begin (1) acting as a real estate agent or real estate broker for a buyer, seller, lessor,
or lessee of real property;
new text end

new text begin (2) bringing together parties interested in the sale, purchase, lease, rental, or
exchange of real property;
new text end

new text begin (3) negotiating, on behalf of a party, a portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real property other than in connection with
providing financing with respect to the transaction;
new text end

new text begin (4) engaging in an activity for which a person engaged in the activity is required to
be registered or licensed as a real estate agent or real estate broker under any applicable
law; and
new text end

new text begin (5) offering to engage in any activity, or act in any capacity, described in clause
(1), (2), (3), or (4).
new text end

new text begin Subd. 12. new text end

new text begin Registered mortgage loan originator. new text end

new text begin "Registered mortgage loan
originator" means an individual who:
new text end

new text begin (1) meets the definition of mortgage loan originator and is an employee of:
new text end

new text begin (i) a depository institution;
new text end

new text begin (ii) a subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency; or
new text end

new text begin (iii) an institution regulated by the Farm Credit Administration; and
new text end

new text begin (2) is registered with, and maintains a unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
new text end

new text begin Subd. 13. new text end

new text begin Residential mortgage loan. new text end

new text begin "Residential mortgage loan" means a loan
primarily for personal, family, or household use that is secured by a mortgage, deed of
trust, or other equivalent consensual security interest on a dwelling, as defined in United
States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is
constructed or intended to be constructed.
new text end

new text begin Subd. 14. new text end

new text begin Residential real estate. new text end

new text begin "Residential real estate" means real property
located in Minnesota, upon which a dwelling is constructed or is intended to be
constructed.
new text end

new text begin Subd. 15. new text end

new text begin Unique identifier. new text end

new text begin "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage Licensing System and
Registry.
new text end

Sec. 3.

new text begin [58A.03] LICENSE AND REGISTRATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin An individual, unless specifically exempted from this
chapter under subdivision 2, shall not engage in the business of a mortgage loan originator
with respect to a dwelling located in this state without first obtaining and maintaining a
license under this chapter. An individual may not engage in the mortgage loan business
unless the individual is employed and supervised by an entity which is either licensed
or exempt from licensing under chapter 58. A licensed mortgage loan originator must
register with and maintain a valid unique identifier issued by the Nationwide Mortgage
Licensing System and Registry.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

new text begin The following are exempt from this chapter:
new text end

new text begin (1) a registered mortgage loan originator, when acting for an entity described in
section 58A.02, subdivision 12, clause (1);
new text end

new text begin (2) an individual who offers or negotiates terms of a residential mortgage loan with
or on behalf of an immediate family member of the individual;
new text end

new text begin (3) an individual who offers or negotiates terms of a residential mortgage loan
secured by a dwelling that served as the individual's residence; and
new text end

new text begin (4) a licensed attorney who negotiates the terms of a residential mortgage loan
on behalf of a client as an ancillary matter to the attorney's representation of the client,
unless the attorney is compensated by a lender, a mortgage broker, or other mortgage
loan originator or by any agent of the lender, mortgage broker, or other mortgage loan
originator.
new text end

new text begin Subd. 3. new text end

new text begin Independent contractor loan processors or underwriters. new text end

new text begin A loan
processor or underwriter who is an independent contractor may not engage in the activities
of a loan processor or underwriter unless the independent contractor loan processor
or underwriter obtains and maintains a license under subdivision 1. An independent
contractor loan processor or underwriter licensed as a mortgage loan originator must have
and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin In order to facilitate an orderly transition to licensing and
minimize disruption in the mortgage marketplace, the effective date for subdivision 1
is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of
Housing and Urban Development, under the authority granted in Public Law 110-289,
section 1508(a).
new text end

Sec. 4.

new text begin [58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND
ISSUANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Application form. new text end

new text begin An applicant for a license shall apply in a form
as prescribed by the commissioner. The form must contain content as set forth by rule,
instruction, or procedure of the commissioner and may be changed or updated as necessary
by the commissioner in order to carry out the purposes of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner may establish relationships or contracts. new text end

new text begin In order
to fulfill the purposes of this chapter, the commissioner is authorized to establish
relationships or contracts with the Nationwide Mortgage Licensing System and Registry
or other entities designated by the Nationwide Mortgage Licensing System and Registry to
collect and maintain records and process transaction fees or other fees related to licensees
or other persons subject to this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Waive or modify requirements. new text end

new text begin For the purpose of participating in the
Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to
waive or modify, in whole or in part, by rule or order, any or all of the requirements of
this chapter and to establish new requirements as reasonably necessary to participate in
the Nationwide Mortgage Licensing System and Registry.
new text end

new text begin Subd. 4. new text end

new text begin Background checks. new text end

new text begin In connection with an application for licensing as a
mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide
Mortgage Licensing System and Registry information concerning the applicant's identity,
including:
new text end

new text begin (1) fingerprints for submission to the Federal Bureau of Investigation, and a
governmental agency or entity authorized to receive the information for a state, national,
and international criminal history background check; and
new text end

new text begin (2) personal history and experience in a form prescribed by the Nationwide
Mortgage Licensing System and Registry, including the submission of authorization for
the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
new text end

new text begin (i) an independent credit report obtained from a consumer reporting agency
described in United States Code, title 15, section 1681a(p); and
new text end

new text begin (ii) information related to administrative, civil, or criminal findings by a
governmental jurisdiction.
new text end

new text begin Subd. 5. new text end

new text begin Agent for purposes of requesting and distributing criminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of
contact which the Federal Bureau of Investigation may have to maintain for purposes of
subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage
Licensing System and Registry as a channeling agent for requesting information from and
distributing information to the Department of Justice or any governmental agency.
new text end

new text begin Subd. 6. new text end

new text begin Agent for purposes of requesting and distributing noncriminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of contact
which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i)
and (ii), the commissioner may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting and distributing information to and from any
source so directed by the commissioner.
new text end

Sec. 5.

new text begin [58A.045] TERM OF LICENSE AND FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Term. new text end

new text begin Licenses for mortgage loan originators issued under this
chapter expire on December 31 and are renewable on January 1 of each year after that date.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin The following fees must be paid to the commissioner:
new text end

new text begin (1) for a mortgage loan originator license, $100; and
new text end

new text begin (2) for a renewal mortgage loan originator license, $50.
new text end

Sec. 6.

new text begin [58A.05] ISSUANCE OF LICENSE.
new text end

new text begin The commissioner shall not issue a mortgage loan originator license unless the
commissioner finds at a minimum, that:
new text end

new text begin (1) the applicant has never had a mortgage loan originator license revoked in a
governmental jurisdiction, except that a subsequent formal vacation of a revocation shall
not be deemed a revocation;
new text end

new text begin (2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a
felony in a domestic, foreign, or military court:
new text end

new text begin (i) during the seven-year period preceding the date of the application for licensing
and registration;
new text end

new text begin (ii) at any time preceding the date of application, if the felony involved an act of
fraud, dishonesty, or a breach of trust, or money laundering; or
new text end

new text begin (iii) provided that a pardon of a conviction is not a conviction for purposes of this
clause;
new text end

new text begin (3) the applicant has demonstrated financial responsibility, character, and general
fitness such as to command the confidence of the community and to warrant a
determination that the mortgage loan originator will operate honestly, fairly, and efficiently
within the purposes of this chapter. For purposes of this chapter, a person has shown that
the person is not financially responsible when the person has shown a disregard in the
management of the person's own financial condition. A determination that an individual
has not shown financial responsibility may include, but is not limited to:
new text end

new text begin (i) current outstanding judgments, except judgments solely as a result of medical
expenses;
new text end

new text begin (ii) current outstanding tax liens or other government liens and filings;
new text end

new text begin (iii) foreclosures within the past three years; and
new text end

new text begin (iv) a pattern of seriously delinquent accounts within the past three years;
new text end

new text begin (4) the applicant has completed the prelicensing education requirement described
in section 58A.06;
new text end

new text begin (5) the applicant has passed a written test that meets the test requirement described
in section 58A.07; and
new text end

new text begin (6) the applicant has met the surety bond requirement as required under section
58A.13.
new text end

Sec. 7.

new text begin [58A.06] PRELICENSING AND RELICENSING EDUCATION OF
LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum educational requirements. new text end

new text begin In order to meet the
prelicensing education requirement referred to in section 58A.05, clause (4), a person
shall complete at least 20 hours of education approved according to subdivision 2, that
includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) three hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1,
prelicensing education courses must be reviewed, and approved by the Nationwide
Mortgage Licensing System and Registry based upon reasonable standards. Review
and approval of a prelicensing education course must include review and approval of
the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes a prelicensing education course, as approved by the Nationwide
Mortgage Licensing System and Registry, that is provided by the employer of the applicant
or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or
affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Prelicensing education may be offered in a classroom,
online, or by any other means approved by the Nationwide Mortgage Licensing System
and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Reciprocity of education. new text end

new text begin The prelicensing education requirements
approved by the Nationwide Mortgage Licensing System and Registry in subdivision
1 for a state must be accepted as credit toward completion of prelicensing education
requirements in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Relicensing education requirements. new text end

new text begin A person previously licensed under
this chapter after the effective date of this chapter applying to be licensed again must
prove that the person has completed all of the continuing education requirements for
the year in which the license was last held.
new text end

Sec. 8.

new text begin [58A.07] TESTING OF LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the written test requirement referred to
in section 58A.05, clause (5), an individual shall pass, in accordance with the standards
established under this section, a qualified written test developed by the Nationwide
Mortgage Licensing System and Registry and administered by a test provider approved
by the Nationwide Mortgage Licensing System and Registry based upon reasonable
standards.
new text end

new text begin Subd. 2. new text end

new text begin Qualified test. new text end

new text begin A written test must not be treated as a qualified written
test for purposes of subdivision 1 unless the test adequately measures the applicant's
knowledge and comprehension in appropriate subject areas, including:
new text end

new text begin (1) ethics;
new text end

new text begin (2) federal law and regulation pertaining to mortgage origination;
new text end

new text begin (3) state law and rule pertaining to mortgage origination; and
new text end

new text begin (4) federal and state law and rule, including instruction on fraud, consumer
protection, the nontraditional mortgage marketplace, and fair lending issues.
new text end

new text begin Subd. 3. new text end

new text begin Testing location. new text end

new text begin Nothing in this section prohibits a test provider approved
by the Nationwide Mortgage Licensing System and Registry from providing a test at the
location of the employer of the applicant or the location of a subsidiary or affiliate of the
employer of the applicant, or the location of an entity with which the applicant holds an
exclusive arrangement to conduct the business of a mortgage loan originator.
new text end

new text begin Subd. 4. new text end

new text begin Minimum competence. new text end

new text begin (a) An individual is not considered to have
passed a qualified written test unless the individual achieves a test score of not less than
75 percent correct answers to questions.
new text end

new text begin (b) An individual may retake a test three consecutive times with each consecutive
taking occurring at least 30 days after the preceding test.
new text end

new text begin (c) After failing three consecutive tests, an individual shall wait at least six months
before taking the test again.
new text end

new text begin (d) A licensed mortgage loan originator who fails to maintain a valid license for a
period of five years or longer shall retake the test, not taking into account any time during
which the individual is a registered mortgage loan originator.
new text end

Sec. 9.

new text begin [58A.08] STANDARDS FOR LICENSE RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The minimum standards for license renewal for a
mortgage loan originator include that the mortgage loan originator:
new text end

new text begin (1) continues to meet the minimum standards for license issuance under section
58A.05;
new text end

new text begin (2) has satisfied the annual continuing education requirements described in section
58A.09; and
new text end

new text begin (3) has paid all required fees for renewal of the license.
new text end

new text begin Subd. 2. new text end

new text begin Failure to satisfy minimum standards of license renewal. new text end

new text begin The license of
a mortgage loan originator failing to satisfy the minimum standards for license renewal
expires. The commissioner may adopt procedures for the reinstatement of expired licenses
consistent with the standards established by the Nationwide Mortgage Licensing System
and Registry.
new text end

Sec. 10.

new text begin [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN
ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the annual continuing education
requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage
loan originator shall complete at least eight hours of education approved according to
subdivision 2 that includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) two hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1, continuing
education courses must be reviewed and approved by the Nationwide Mortgage Licensing
System and Registry based upon reasonable standards. Review and approval of a
continuing education course must include review and approval of the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes an education course, as approved by the Nationwide Mortgage
Licensing System and Registry, that is provided by the employer of the mortgage loan
originator or an entity that is affiliated with the mortgage loan originator by an agency
contract, or a subsidiary or affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Continuing education may be offered either in a
classroom, online, or by other means approved by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of continuing education credits. new text end

new text begin A licensed mortgage loan
originator:
new text end

new text begin (1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive
credit for a continuing education course in the year in which the course is taken; and
new text end

new text begin (2) may not take the same approved course in the same or successive years to meet
the annual requirements for continuing education.
new text end

new text begin Subd. 6. new text end

new text begin Instructor credit. new text end

new text begin A licensed mortgage loan originator who is an approved
instructor of an approved continuing education course may receive credit for the licensed
mortgage loan originator's own annual continuing education requirement at the rate of
two hours credit for every one hour taught.
new text end

new text begin Subd. 7. new text end

new text begin Reciprocity of education. new text end

new text begin A person having successfully completed the
education requirements approved by the Nationwide Mortgage Licensing System and
Registry in subdivision 1 for a state must be accepted as credit toward completion of
continuing education requirements in Minnesota.
new text end

new text begin Subd. 8. new text end

new text begin Lapse in license. new text end

new text begin A licensed mortgage loan originator who subsequently
becomes unlicensed must complete the continuing education requirements for the last year
in which the license was held before a new or renewed license is issued.
new text end

new text begin Subd. 9. new text end

new text begin Deficiency. new text end

new text begin A person meeting the requirements of section 58A.08,
subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as
established by rule of the commissioner.
new text end

Sec. 11.

new text begin [58A.10] AUTHORITY TO REQUIRE LICENSE.
new text end

new text begin In addition to any other duties imposed upon the commissioner by law, the
commissioner shall require mortgage loan originators to be licensed and registered
through the Nationwide Mortgage Licensing System and Registry. In order to carry out
this requirement, the commissioner may participate in the Nationwide Mortgage Licensing
System and Registry. For this purpose, the commissioner may establish by rule or order
requirements as necessary, including but not limited to:
new text end

new text begin (1) background checks for:
new text end

new text begin (i) criminal history through fingerprint or other databases;
new text end

new text begin (ii) civil or administrative records;
new text end

new text begin (iii) credit history; or
new text end

new text begin (iv) other information as determined necessary by the Nationwide Mortgage
Licensing System and Registry;
new text end

new text begin (2) the payment of fees to apply for or renew licenses through the Nationwide
Mortgage Licensing System and Registry;
new text end

new text begin (3) the setting or resetting as necessary of renewal or reporting dates; and
new text end

new text begin (4) requirements for amending or surrendering a license or other activities the
commissioner considers necessary for participation in the Nationwide Mortgage Licensing
System and Registry.
new text end

Sec. 12.

new text begin [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND
REGISTRY INFORMATION CHALLENGE PROCESS.
new text end

new text begin The commissioner shall establish a process that allows mortgage loan originators
to challenge information entered into the Nationwide Mortgage Licensing System and
Registry by the commissioner.
new text end

Sec. 13.

new text begin [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND
PENALTIES.
new text end

new text begin (a) In order to ensure the effective supervision and enforcement of this chapter, the
commissioner may, pursuant to chapter 14:
new text end

new text begin (1) deny, suspend, revoke, condition, or decline to renew a license for a violation of
this chapter, rules issued under this chapter, or order or directive entered under this chapter;
new text end

new text begin (2) deny, suspend, revoke, condition, or decline to renew a license if an applicant
or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or
withholds information or makes a material misstatement in an application for a license
or renewal of a license;
new text end

new text begin (3) order restitution against persons subject to this chapter for violations of this
chapter;
new text end

new text begin (4) impose fines on persons subject to this chapter pursuant to paragraphs (b)
to (d); and
new text end

new text begin (5) issue orders or directives under this chapter as follows:
new text end

new text begin (i) order or direct persons subject to this chapter to cease and desist from conducting
business, including immediate temporary orders to cease and desist;
new text end

new text begin (ii) order or direct persons subject to this chapter to cease any harmful activities or
violations of this chapter, including immediate temporary orders to cease and desist;
new text end

new text begin (iii) enter immediate temporary orders to cease business under a license or interim
license issued pursuant to the authority granted under section 58A.03 if the commissioner
determines that the license was erroneously granted or the licensee is currently in violation
of this chapter; and
new text end

new text begin (iv) order or direct other affirmative action the commissioner considers necessary.
new text end

new text begin (b) The commissioner may impose a civil penalty on a mortgage loan originator or
person subject to this chapter, if the commissioner finds, on the record after notice and
opportunity for hearing, that the mortgage loan originator or person subject to this chapter
has violated or failed to comply with any requirement of this chapter or any rule prescribed
by the commissioner under this chapter or order issued under authority of this chapter.
new text end

new text begin (c) The maximum amount of penalty for each act or omission described in paragraph
(b) is $25,000.
new text end

new text begin (d) Each violation or failure to comply with any directive or order of the
commissioner is a separate and distinct violation or failure.
new text end

Sec. 14.

new text begin [58A.13] SURETY BOND REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Coverage, form, and rules. new text end

new text begin (a) Each mortgage loan originator must
be covered by a surety bond meeting the requirements of this section. In the event that
the mortgage loan originator is an employee or exclusive agent of a person subject to this
chapter, the surety bond of the person subject to this chapter can be used in lieu of the
mortgage loan originator's surety bond requirement.
new text end

new text begin (b) The surety bond shall provide coverage for each mortgage loan originator in
an amount as prescribed in subdivision 2.
new text end

new text begin (c) The surety bond must be in a form as prescribed by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Penal sum of surety bond. new text end

new text begin The penal sum of the surety bond must be
maintained in an amount that reflects the dollar amount of loans originated as determined
by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Action on bond. new text end

new text begin When an action is commenced on a licensee's bond the
commissioner may require the filing of a new bond.
new text end

new text begin Subd. 4. new text end

new text begin New bond. new text end

new text begin Immediately upon recovery upon any action on the bond
the licensee shall file a new bond.
new text end

Sec. 15.

new text begin [58A.14] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Protections. new text end

new text begin Except as otherwise provided in Public Law 110-289,
section 1512, the requirements under chapter 13 or any federal law regarding the privacy
or confidentiality of any information or material provided to the Nationwide Mortgage
Licensing System and Registry, and any privilege arising under federal or state law,
including the rules of any federal or state court, with respect to the information or material,
continue to apply to the information or material after the information or material has been
disclosed to the Nationwide Mortgage Licensing System and Registry. The information
and material may be shared with all state and federal regulatory officials with mortgage
industry oversight authority without the loss of privilege or the loss of confidentiality
protections provided by chapter 13 or federal law.
new text end

new text begin Subd. 2. new text end

new text begin Agreements and sharing arrangements. new text end

new text begin For purposes of this section,
the commissioner is authorized to enter agreements or sharing arrangements with
other governmental agencies, the Conference of State Bank Supervisors, the American
Association of Residential Mortgage Regulators, or other associations representing
governmental agencies as established by rule or order of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Nonapplicability of certain requirements. new text end

new text begin Information or material that is
subject to a privilege or confidentiality under subdivision 1 is not subject to:
new text end

new text begin (1) disclosure under any federal or state law governing the disclosure to the public of
information held by an officer or an agency of the federal government or the respective
state; or
new text end

new text begin (2) subpoena or discovery, or admission into evidence, in any private civil action
or administrative process, unless with respect to any privilege held by the Nationwide
Mortgage Licensing System and Registry with respect to the information or material,
the person to whom the information or material pertains waives, in whole or in part, in
the discretion of the person, that privilege.
new text end

new text begin Subd. 4. new text end

new text begin Coordination with Minnesota Government Data Practices Act. new text end

new text begin Chapter
13 relating to the disclosure of confidential supervisory information or any information or
material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by
the requirements of this section.
new text end

new text begin Subd. 5. new text end

new text begin Public access to information. new text end

new text begin This section does not apply with respect to
the information or material relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, mortgage loan originators that are included
in the Nationwide Mortgage Licensing System and Registry for access by the public.
new text end

Sec. 16.

new text begin [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In addition to any authority allowed under this chapter,
the commissioner may conduct investigations and examinations according to subdivisions
2 to 9.
new text end

new text begin Subd. 2. new text end

new text begin Authority to access information. new text end

new text begin For purposes of initial licensing, license
renewal, license suspension, license conditioning, license revocation or termination, or
general or specific inquiry or investigation to determine compliance with this chapter, the
commissioner may access, receive and use any books, accounts, records, files, documents,
information or evidence including, but not limited to:
new text end

new text begin (1) criminal, civil, and administrative history information, including nonconviction
data;
new text end

new text begin (2) personal history and experience information including independent credit reports
obtained from a consumer reporting agency described in United States Code, title 15,
section 1681a(p); and
new text end

new text begin (3) any other documents, information, or evidence the commissioner considers
relevant to the inquiry or investigation regardless of the location, possession, control, or
custody of the documents, information, or evidence.
new text end

new text begin Subd. 3. new text end

new text begin Investigation, examination, and subpoena authority. new text end

new text begin For the purposes
of investigating violations or complaints arising under this chapter, or for the purposes of
examination, the commissioner may review, investigate, or examine a licensee, individual,
or person subject to this chapter, as often as necessary in order to carry out the purposes
of this chapter. The commissioner may direct, subpoena, or order the attendance of and
examine under oath all persons whose testimony may be required about the loans or the
business or subject matter of any such examination or investigation, and may direct,
subpoena, or order such person to produce books, accounts, records, files, and any other
documents the commissioner considers relevant to the inquiry.
new text end

new text begin Subd. 4. new text end

new text begin Availability of books and records. new text end

new text begin A licensee, individual, or person
subject to this chapter shall make available to the commissioner upon request the books
and records relating to the operations of the licensee, individual, or person subject to this
chapter. The commissioner shall have access to the books and records and interview
the officers, principals, mortgage loan originators, employees, independent contractors,
agents, and customers of the licensee, individual, or person subject to this chapter
concerning the licensee's, individual's, or person's business.
new text end

new text begin Subd. 5. new text end

new text begin Reports and other information as directed. new text end

new text begin A licensee, individual, or
person subject to this chapter shall make or compile reports or prepare other information
as directed by the commissioner in order to carry out the purposes of this section including
but not limited to:
new text end

new text begin (1) accounting compilations;
new text end

new text begin (2) information lists and data concerning loan transactions in a format prescribed
by the commissioner; or
new text end

new text begin (3) other information the commissioner considers necessary to carry out the
purposes of this section.
new text end

new text begin Subd. 6. new text end

new text begin Control access to records. new text end

new text begin In making an examination or investigation
authorized by this chapter, the commissioner may control access to documents and records
of the licensee or person under examination or investigation. The commissioner may
take possession of the documents and records or place a person in exclusive charge of
the documents and records in the place where they are usually kept. During the period of
control, no individual or person shall remove or attempt to remove any of the documents
and records except pursuant to a court order or with the consent of the commissioner.
Unless the commissioner has reasonable grounds to believe the documents or records
of the licensee have been, or are at risk of being, altered or destroyed for purposes of
concealing a violation of this chapter, the licensee or owner of the documents and records
has access to the documents or records as necessary to conduct its ordinary business affairs.
new text end

new text begin Subd. 7. new text end

new text begin Additional authority. new text end

new text begin In order to carry out the purposes of this section,
the commissioner may:
new text end

new text begin (1) retain attorneys, accountants, or other professionals and specialists as examiners,
auditors, or investigators to conduct or assist in the conduct of examinations or
investigations;
new text end

new text begin (2) enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory burden
by sharing resources, standardized or uniform methods or procedures, and documents,
records, information, or evidence obtained under this section;
new text end

new text begin (3) use, hire, contract, or employ public or privately available analytical systems,
methods, or software to examine or investigate the licensee, individual, or person subject
to this chapter;
new text end

new text begin (4) accept and rely on examination or investigation reports made by other
government officials, within or without this state; or
new text end

new text begin (5) accept audit reports made by an independent certified public accountant for the
licensee, individual, or person subject to this chapter in the course of that part of the
examination covering the same general subject matter as the audit and incorporate the
audit report in the report of the examination, report of investigation or other writing of
the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Effect of authority. new text end

new text begin The authority of this section remains in effect,
whether a licensee, individual, or person subject to this chapter acts or claims to act under
any licensing or registration law of this state, or claims to act without such authority.
new text end

new text begin Subd. 9. new text end

new text begin Withhold records. new text end

new text begin A licensee, individual, or person subject to
investigation or examination under this section shall not knowingly withhold, abstract,
remove, mutilate, destroy, or secrete any books, records, computer records, or other
information.
new text end

Sec. 17.

new text begin [58A.16] PROHIBITED ACTS AND PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin It is a violation of this chapter for a person or individual
subject to this chapter to:
new text end

new text begin (1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead
borrowers or lenders or to defraud any person;
new text end

new text begin (2) engage in any unfair or deceptive practice toward any person;
new text end

new text begin (3) obtain property by fraud or misrepresentation;
new text end

new text begin (4) solicit or enter into a contract with a borrower that provides in substance that the
person or individual subject to this chapter may earn a fee or commission through "best
efforts" to obtain a loan even though no loan is actually obtained for the borrower;
new text end

new text begin (5) solicit, advertise, or enter into a contract for specific interest rates, points, or
other financing terms unless the terms are actually available at the time of soliciting,
advertising, or contracting;
new text end

new text begin (6) conduct any business covered by this chapter without holding a valid license as
required under this chapter, or assist or aid and abet any person in the conduct of business
under this chapter without a valid license as required under this chapter;
new text end

new text begin (7) fail to make disclosures as required by this chapter and any other applicable
state or federal law or regulations;
new text end

new text begin (8) fail to comply with this chapter or rules adopted under this chapter or fail
to comply with any other state or federal law or regulations applicable to any business
authorized or conducted under this chapter;
new text end

new text begin (9) make, in any manner, any false or deceptive statement or representation
including, with regard to the rates, points, or other financing terms or conditions for a
residential mortgage loan; or engage in bait-and-switch advertising;
new text end

new text begin (10) negligently make a false statement or knowingly and willfully make an omission
of material fact in connection with any information or reports filed with a governmental
agency or the Nationwide Mortgage Licensing System and Registry or in connection with
an investigation conducted by the commissioner or another governmental agency;
new text end

new text begin (11) make a payment, threat, or promise, directly or indirectly, to a person for the
purposes of influencing the independent judgment of the person in connection with a
residential mortgage loan, or make a payment threat or promise, directly or indirectly, to
an appraiser of a property, for the purposes of influencing the independent judgment of the
appraiser with respect to the value of the property;
new text end

new text begin (12) collect, charge, attempt to collect or charge, or use or propose an agreement
purporting to collect or charge a fee prohibited by this chapter;
new text end

new text begin (13) cause or require a borrower to obtain property insurance coverage in an amount
that exceeds the replacement cost of the improvements as established by the property
insurer; or
new text end

new text begin (14) fail to truthfully account for money belonging to a party to a residential
mortgage loan transaction.
new text end

new text begin Subd. 2. new text end

new text begin Loan processor or underwriter activities. new text end

new text begin An individual engaging solely
in loan processor or underwriter activities shall not represent to the public, through
advertising or other means of communicating or providing information, including the use
of business cards, stationery, brochures, signs, rate lists, or other promotional items, that
the individual can or will perform any of the activities of a mortgage loan originator.
new text end

Sec. 18.

new text begin [58A.17] MORTGAGE CALL REPORTS.
new text end

new text begin A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and
Registry reports of condition, which must be in the form and contain the information the
Nationwide Mortgage Licensing System and Registry requires.
new text end

Sec. 19.

new text begin [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING
SYSTEM AND REGISTRY.
new text end

new text begin The commissioner shall regularly report violations of this chapter, as well as
enforcement actions and other relevant information, to the Nationwide Mortgage
Licensing System and Registry subject to the provisions contained in section 58A.14.
new text end

Sec. 20.

new text begin [58A.20] UNIQUE IDENTIFIER SHOWN.
new text end

new text begin The unique identifier of any person originating a residential mortgage loan shall
be clearly shown on all residential mortgage loan application forms, solicitations, or
advertisements, including business cards or Web sites, and any other documents as
established by rule or order of the commissioner.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2010.
new text end

new text begin Dollar Amount of Closed Residential Mortgage Loans new text end	new text begin Surety Bond Required new text end
new text begin $0 to $5,000,000 new text end	new text begin $100,000 new text end
new text begin $5,000,000.01 to $10,000,000 new text end	new text begin $125,000 new text end
new text begin $10,000,000.01 to $25,000,000 new text end	new text begin $150,000 new text end
new text begin Over $25,000,000 new text end	new text begin $200,000 new text end

SF 2839

Bill Text Versions

ARTICLE 1

MISCELLANEOUS COMMERCE PROVISIONS

Section 1.

45.0112 STREET new text begin AND E-MAIL new text end ADDRESSES REQUIRED.

Sec. 2.

Subdivision 1.

General powers.

Sec. 3.

Subd. 4.

Credit earned.

Sec. 4.

Subd. 4.

Examination report; foreign and domestic companies.

Sec. 5.

60A.084 NOTIFICATION ON GROUP POLICIES.

Sec. 6.

60A.204 deleted text begin ADDITIONAL CHARGES ANDdeleted text end FEESnew text begin AND COMMISSIONSnew text end .

deleted text begin Subdivision 1. deleted text end

deleted text begin Placement fees. deleted text end

deleted text begin Subd. 2. deleted text end

deleted text begin Regulation of fees. deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Commission charges. deleted text end

Sec. 7.

new text begin Subd. 2a. new text end

new text begin Third-party notices. new text end

Sec. 8.

Subdivision 1.

Issuance.

Sec. 9.

Subd. 4.

Cancellation notice.

Sec. 10.

Subd. 5.

Filing.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 6.

Disclosures.

Sec. 12.

Subd. 10.

Limited lines insurance.

Sec. 13.

Subd. 3.

Notice of options.

Sec. 14.

Subd. 6.

Coordination of benefits.

Sec. 15.

new text begin Subd. 7. new text end

new text begin High-deductible health plans. new text end

Sec. 16.

Subd. 5.

Notice of options.

Sec. 17.

Subd. 18.

Medicare supplement policy or certificate.

new text begin EFFECTIVE DATE. new text end

Sec. 18.

Subd. 2.

Guaranteed renewal.

Sec. 19.

Subd. 15.

Medicare.

Sec. 20.

Subd. 4c.

Waiver of preexisting conditions for persons whose coverage is terminated or who exceed the maximum lifetime benefit.

Sec. 21.

Subd. 4.

Benefits.

Sec. 22.

Subd. 8.

Exchange for long-term care partnership policy; addition of policy rider.

Sec. 23.

Subd. 4.

Contingent benefit upon lapse.

Sec. 24.

Subdivision 1.

Waiver of preexisting conditions for persons whose coverage is
terminated or who exceed the maximum lifetime benefit.

Exchange for long-term care partnership policy; addition of policy
rider.