1.1                          A bill for an act 
  1.2             relating to commerce; changing the enforcement 
  1.3             authority to the commissioner; providing continuing 
  1.4             education and reporting requirements for certain 
  1.5             licenses; regulating inspections of cosmetology salons 
  1.6             and schools; regulating disclosures of information and 
  1.7             data; regulating securities registrations and 
  1.8             exemptions; regulating franchise registrations and 
  1.9             definitions; regulating cancellations of membership 
  1.10            camping contracts; modifying the bond or insurance 
  1.11            requirements for abstractors; regulating residential 
  1.12            building contractors; regulating unclaimed properties 
  1.13            and notaries public; removing a certain licensing 
  1.14            exception; repealing an obsolete provision; modifying 
  1.15            reporting and enforcement provisions for charitable 
  1.16            solicitations; regulating the repair of certain 
  1.17            consumer goods; modifying the definition of 
  1.18            "nonconformity" for purposes of assistive listening 
  1.19            device regulation; amending Minnesota Statutes 1994, 
  1.20            sections 45.011, subdivision 1; 45.027, subdivision 7, 
  1.21            and by adding subdivisions; 53A.081, subdivision 1; 
  1.22            60K.19, subdivisions 7, 8, and 10; 80A.05, subdivision 
  1.23            1; 80A.06, subdivision 3; 80A.09, by adding a 
  1.24            subdivision; 80A.10, subdivision 4; 80A.11, by adding 
  1.25            a subdivision; 80A.14, by adding subdivisions; 80A.15, 
  1.26            subdivisions 2 and 3; 80C.01, by adding a subdivision; 
  1.27            80C.05, by adding a subdivision; 82.22, subdivision 
  1.28            13; 82A.11, by adding a subdivision; 82B.19, by adding 
  1.29            a subdivision; 155A.08, subdivision 3; 155A.09, 
  1.30            subdivision 7; 155A.095; 309.57, subdivision 1; 
  1.31            325F.56, subdivision 2; 326.87, by adding a 
  1.32            subdivision; 326.91, by adding subdivisions; 326.991; 
  1.33            332.34; 345.41; 345.42; 345.43, by adding a 
  1.34            subdivision; 345.515; 359.01, subdivisions 1 and 2; 
  1.35            359.02; and 359.061; Minnesota Statutes 1995 
  1.36            Supplement, sections 16A.6701, subdivision 1; 80A.15, 
  1.37            subdivision 1; 83.26, subdivision 2; 309.53, 
  1.38            subdivision 3; 325G.203, by adding a subdivision; and 
  1.39            386.66; proposing coding for new law in Minnesota 
  1.40            Statutes, chapters 45; and 332; repealing Minnesota 
  1.41            Statutes 1994, sections 80A.14, subdivision 8; 326.95, 
  1.42            subdivision 4; 326.97, subdivision 3; 326.99; and 
  1.43            345.43, subdivisions 1 and 2. 
  1.44  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.1                              ARTICLE 1
  2.2                         GENERAL ENFORCEMENT
  2.3      Section 1.  Minnesota Statutes 1995 Supplement, section 
  2.4   16A.6701, subdivision 1, is amended to read: 
  2.5      Subdivision 1.  [STATE LICENSE AND SERVICE FEES.] For 
  2.6   purposes of section 16A.665, subdivision 3, and this section, 
  2.7   the term "state license and service fees" means, and refers to, 
  2.8   all license fees, service fees, and charges imposed by law and 
  2.9   collected by any state officer, agency, or employee, which are 
  2.10  listed below or which are defined as departmental earnings under 
  2.11  section 16A.1285, subdivision 1, and the use of which is not 
  2.12  otherwise restricted by law, and which are not required to be 
  2.13  credited or transferred to a fund other than the general fund:  
  2.14     Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
  2.15  5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
  2.16  16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
  2.17  18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
  2.18  and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
  2.19  35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
  2.20  46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
  2.21  47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
  2.22  subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
  2.23  7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
  2.24  subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
  2.25  subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
  2.26  55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 
  2.27  subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
  2.28  2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
  2.29  subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
  2.30  79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
  2.31  7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
  2.32  1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
  2.33  subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
  2.34  2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
  2.35  subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
  2.36  subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
  3.1   83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
  3.2   2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
  3.3   subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
  3.4   subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 
  3.5   168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 
  3.6   168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 
  3.7   176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 
  3.8   183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 
  3.9   5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 
  3.10  240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 
  3.11  subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 297.04; 
  3.12  297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 
  3.13  300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 
  3.14  326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 
  3.15  331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 
  3.16  subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 
  3.17  7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 
  3.18  336A.09; 345.35; 345.43, subdivision 1 2a; 345.44; 345.55, 
  3.19  subdivision 3; 347.33; 349.151; 349.161; 349.162; 349.163; 
  3.20  349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 
  3.21  3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; 
  3.22  Minnesota Statutes 1994, chapters 154; 216B; 237; 302A; 303; 
  3.23  308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, 
  3.24  chapter 254, section 7; and Laws 1994, chapter 573, section 4; 
  3.25  Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 
  3.26  7515.0210; and 9545.2000 to 9545.2040. 
  3.27     Sec. 2.  Minnesota Statutes 1994, section 45.011, 
  3.28  subdivision 1, is amended to read: 
  3.29     Subdivision 1.  [SCOPE.] As used in chapters 45 to 83, 
  3.30  155A, 309, 332, 345, and 359, and sections 326.83 to 326.98, and 
  3.31  386.61 to 386.78, unless the context indicates otherwise, the 
  3.32  terms defined in this section have the meanings given them.  
  3.33     Sec. 3.  [45.016] [SERVICE OF ORDERS OR OTHER PAPERS.] 
  3.34     Service of orders or other papers required or permitted to 
  3.35  be issued by the commissioner related to the duties and 
  3.36  responsibilities entrusted to the commissioner may be by any of 
  4.1   the following methods: 
  4.2      (1) personal service consistent with requirements for 
  4.3   service of a summons or process under section 303.13 or 543.19, 
  4.4   or under rule 4.03 of the Minnesota Rules of Civil Procedure; 
  4.5      (2) first class United States mail, including certified 
  4.6   United States mail, or overnight express mail service, postage 
  4.7   prepaid and addressed to the party at the party's last known 
  4.8   address.  Service by United States mail, including certified 
  4.9   mail, is complete upon placing the order or other paper in the 
  4.10  mail or otherwise delivering the order or other paper to the 
  4.11  United States mail service.  Service by overnight express mail 
  4.12  service is complete upon delivering the order or other document 
  4.13  to an authorized agent of the express mail service; or 
  4.14     (3) any other method of service provided under the laws 
  4.15  relating to duties and responsibilities entrusted to the 
  4.16  commissioner. 
  4.17     Sec. 4.  Minnesota Statutes 1994, section 45.027, 
  4.18  subdivision 7, is amended to read: 
  4.19     Subd. 7.  [ACTIONS AGAINST LICENSEES.] In addition to any 
  4.20  other actions authorized by this section, the commissioner may, 
  4.21  by order, deny, suspend, or revoke the authority or license of a 
  4.22  person subject to the duties and responsibilities entrusted to 
  4.23  the commissioner, as described under section 45.011, subdivision 
  4.24  4, or censure that person if the commissioner finds that: 
  4.25     (1) the order is in the public interest; and 
  4.26     (2) the person has violated any law, rule, or order related 
  4.27  to the duties and responsibilities entrusted to the 
  4.28  commissioner; or 
  4.29     (3) the person has provided false, misleading, or 
  4.30  incomplete information to the commissioner or has refused to 
  4.31  allow a reasonable inspection of records or premises; or 
  4.32     (4) the person has engaged in an act or practice, whether 
  4.33  or not the act or practice directly involves the business for 
  4.34  which the person is licensed or authorized, which demonstrates 
  4.35  that the applicant or licensee is untrustworthy, financially 
  4.36  irresponsible, or otherwise incompetent or unqualified to act 
  5.1   under the authority or license granted by the commissioner. 
  5.2      Except for information classified as confidential under 
  5.3   sections 60A.03, subdivision 9; 60A.031; 60A.93; and 60D.22, the 
  5.4   commissioner may make any data otherwise classified as private 
  5.5   or confidential pursuant to this section accessible to an 
  5.6   appropriate person or agency if the commissioner determines that 
  5.7   the access will aid the law enforcement process, promote public 
  5.8   health or safety, or dispel widespread rumor or unrest.  If the 
  5.9   commissioner determines that private or confidential information 
  5.10  should be disclosed, the commissioner shall notify the attorney 
  5.11  general as to the information to be disclosed, the purpose of 
  5.12  the disclosure, and the need for the disclosure.  The attorney 
  5.13  general shall review the commissioner's determination.  If the 
  5.14  attorney general believes that the commissioner's determination 
  5.15  does not satisfy the purpose and intent of this provision, the 
  5.16  attorney general shall advise the commissioner in writing that 
  5.17  the information may not be disclosed.  If the attorney general 
  5.18  believes the commissioner's determination satisfies the purpose 
  5.19  and intent of this provision, the attorney general shall advise 
  5.20  the commissioner in writing, accordingly. 
  5.21     After disclosing information pursuant to this provision, 
  5.22  the commissioner shall advise the chairs of the senate and house 
  5.23  of representatives judiciary committees of the disclosure and 
  5.24  the basis for it. 
  5.25     Sec. 5.  Minnesota Statutes 1994, section 45.027, is 
  5.26  amended by adding a subdivision to read: 
  5.27     Subd. 12.  [CONDITIONS OF RELICENSURE.] A revocation of a 
  5.28  license prohibits the licensee from making a new application for 
  5.29  a license for at least two years from the effective date of the 
  5.30  revocation.  The commissioner may, as a condition of 
  5.31  reapplication, require the applicant to obtain a bond or comply 
  5.32  with additional reasonable conditions of licensure the 
  5.33  commissioner considers necessary to protect the public. 
  5.34     Sec. 6.  Minnesota Statutes 1994, section 53A.081, 
  5.35  subdivision 1, is amended to read: 
  5.36     Subdivision 1.  [ANNUAL REPORT.] On or before March 1 April 
  6.1   30, a licensee shall file an annual report with the commissioner 
  6.2   for the previous calendar year.  The report must contain 
  6.3   information that the commissioner may reasonably require 
  6.4   concerning, and for the purpose of examining, the business and 
  6.5   operations of each licensed currency exchange. 
  6.6      Sec. 7.  Minnesota Statutes 1994, section 60K.19, 
  6.7   subdivision 7, is amended to read: 
  6.8      Subd. 7.  [CRITERIA FOR COURSE ACCREDITATION.] (a) The 
  6.9   commissioner may accredit a course only to the extent it is 
  6.10  designed to impart substantive and procedural knowledge of the 
  6.11  insurance field.  The burden of demonstrating that the course 
  6.12  satisfies this requirement is on the individual or organization 
  6.13  seeking accreditation.  The commissioner shall approve any 
  6.14  educational program approved by Minnesota Continuing Legal 
  6.15  Education relating to the insurance field.  The commissioner is 
  6.16  authorized to establish a procedure for renewal of course 
  6.17  accreditation. 
  6.18     (b) The commissioner shall approve or disapprove 
  6.19  professional designation examinations that are recommended for 
  6.20  approval by the advisory task force.  In order for an agent to 
  6.21  receive full continuing education credit for a professional 
  6.22  designation examination, the agent must pass the examination.  
  6.23  An agent may not receive credit for classroom instruction 
  6.24  preparing for the professional designation examination and also 
  6.25  receive continuing education credit for passing the professional 
  6.26  designation examination. 
  6.27     (c) The commissioner may not accredit a course:  
  6.28     (1) that is designed to prepare students for a license 
  6.29  examination; 
  6.30     (2) in mechanical office or business skills, including 
  6.31  typing, speedreading, use of calculators, or other machines or 
  6.32  equipment; 
  6.33     (3) in sales promotion, including meetings held in 
  6.34  conjunction with the general business of the licensed agent; 
  6.35     (4) in motivation, the art of selling, psychology, or time 
  6.36  management; or 
  7.1      (5) which can be completed by the student at home or 
  7.2   outside the classroom without the supervision of an instructor 
  7.3   approved by the department of commerce, except that home-study 
  7.4   courses may be accredited by the commissioner if the student is 
  7.5   a nonresident agent residing in a state which is not contiguous 
  7.6   to Minnesota.  
  7.7      Sec. 8.  Minnesota Statutes 1994, section 60K.19, 
  7.8   subdivision 8, is amended to read: 
  7.9      Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
  7.10  subject to this section shall complete a minimum of 30 credit 
  7.11  hours of courses accredited by the commissioner during each 
  7.12  24-month licensing period after the expiration of his or her 
  7.13  initial licensing period.  At least 15 of the 30 credit hours 
  7.14  must be completed during the first 12 months of the 24-month 
  7.15  licensing period.  Any person whose initial licensing period 
  7.16  extends more than six months shall complete 15 hours of courses 
  7.17  accredited by the commissioner during the initial license 
  7.18  period.  Any person teaching or lecturing at an accredited 
  7.19  course qualifies for 1-1/2 times the number of credit hours that 
  7.20  would be granted to a person completing the accredited course.  
  7.21  No more than 15 credit hours per licensing period may be 
  7.22  credited to a person for courses sponsored by, offered by, or 
  7.23  affiliated with an insurance company or its agents.  Continuing 
  7.24  education must be earned no later than September 30 of the 
  7.25  renewal year.  Courses sponsored by, offered by, or affiliated 
  7.26  with an insurance company or agent may restrict its students to 
  7.27  agents of the company or agency. 
  7.28     Sec. 9.  Minnesota Statutes 1994, section 60K.19, 
  7.29  subdivision 10, is amended to read: 
  7.30     Subd. 10.  [REPORTING.] (a) After completing the minimum 
  7.31  education requirement, each person subject to this section shall 
  7.32  file or cause to be filed a compliance report in accordance with 
  7.33  the procedures adopted by the commissioner.  The compliance 
  7.34  report must not claim credit for continuing education not 
  7.35  actually completed at the date of filing the report. 
  7.36     (b) An institution offering an accredited course shall 
  8.1   comply with the procedure for reporting compliance adopted by 
  8.2   the commissioner.  
  8.3      (c) If a person subject to this section completes a 
  8.4   nonaccredited course, that person may submit a written report to 
  8.5   the advisory committee accompanied by a fee of not more than $10 
  8.6   payable to the state of Minnesota for deposit in the general 
  8.7   fund.  This report must be accompanied by proof satisfactory to 
  8.8   the commissioner that the person has completed the minimum 
  8.9   education requirement for the annual period during which the 
  8.10  nonaccredited course was completed.  Upon the recommendation of 
  8.11  the advisory committee that the course satisfies the criteria 
  8.12  for course accreditation, the commissioner may approve the 
  8.13  nonaccredited course and shall so inform the person.  If the 
  8.14  nonaccredited course is approved by the commissioner, it may be 
  8.15  used to satisfy the minimum education requirement for the 
  8.16  person's next annual compliance period.  
  8.17     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
  8.18  83.26, subdivision 2, is amended to read: 
  8.19     Subd. 2.  [GENERALLY; TRANSACTIONS.] Unless the method of 
  8.20  offer or sale is adopted for the purpose of evasion of sections 
  8.21  83.20 to 83.42, 83.43 and 83.44, the following transactions are 
  8.22  exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and 
  8.23  83.30:  
  8.24     (a) the offer or sale of an interest in subdivided land by 
  8.25  an owner, other than the subdivider, acting as principal in a 
  8.26  single or isolated transaction; 
  8.27     (b) the offer or sale of all of the subdivided lands within 
  8.28  a subdivision in a single transaction to any person; 
  8.29     (c) the offer or sale of subdivided land pursuant to an 
  8.30  order of competent jurisdiction, other than a court of 
  8.31  bankruptcy; 
  8.32     (d) the offer or sale of subdivided land consisting of not 
  8.33  more than ten separate lots, units, parcels, or interests in the 
  8.34  aggregate, provided that no subdivider may make an offer or sale 
  8.35  of subdivided land pursuant to this exemption more than once 
  8.36  during any period of 12 consecutive months; 
  9.1      (e) the offer or sale of subdivided lands which have been 
  9.2   registered under section 83.23, subdivision 2, if there are no 
  9.3   more than ten separate lots, units, parcels, or interests 
  9.4   remaining to be sold and no material change has occurred in the 
  9.5   information on file with the commissioner; 
  9.6      (f) the offer and sale of subdivided land located within 
  9.7   the corporate limits of a municipality as defined in section 
  9.8   462.352, subdivision 2, which municipality has adopted 
  9.9   subdivision regulations as defined in section 462.352, except 
  9.10  those lands described in section 83.20, subdivision 13; 
  9.11     (g) the offer and sale of apartments or condominium units 
  9.12  as defined in chapters 515 and 515A, and units in common 
  9.13  interest communities as defined in chapter 515B; 
  9.14     (h) the offer and sale of subdivided lands used primarily 
  9.15  for agricultural purposes provided each parcel is at least ten 
  9.16  acres in size; 
  9.17     (i) the offer or sale of improved lots if:  
  9.18     (1) the subdivider has filed with the commissioner, no 
  9.19  later than ten business days prior to the date of the first 
  9.20  sale, a written notice of its intention to offer or sell 
  9.21  improved lots, which notice shall be accompanied by a fee of 
  9.22  $50, together with a copy of the public offering statement 
  9.23  accepted by the situs state and the standard purchase agreement 
  9.24  which documents are required to be supplied by the subdivider to 
  9.25  the purchaser; and 
  9.26     (2) the subdivider deposits all downpayments in an escrow 
  9.27  account until all obligations of the subdivider to the 
  9.28  purchaser, which are pursuant to the terms of the purchase 
  9.29  agreement to be performed prior to the closing, have been 
  9.30  performed.  The subdivider shall provide the purchaser with a 
  9.31  purchase receipt for the downpayment paid, a copy of the escrow 
  9.32  agreement and the name, address, and telephone number of the 
  9.33  escrow agent.  The escrow agent shall be a bank located in 
  9.34  Minnesota.  All downpayments shall be deposited in the escrow 
  9.35  account within two business days after receipt; and 
  9.36     (j) the offer of sale of subdivided lands by a subdivider 
 10.1   that has been granted an exemption from registration by the 
 10.2   federal Department of Housing and Urban Development under the 
 10.3   multiple site subdivision exemption, if the subdivider provides 
 10.4   a written notice of the offer of sale to the commissioner before 
 10.5   any offers or sale commence. 
 10.6      The written notice must include the name of the 
 10.7   subdivision, the county and state in which the subdivision is 
 10.8   located, and the number of lots in the subdivision, and a 
 10.9   notarized affidavit that all proposed improvements have been 
 10.10  completed and the costs of all the improvements have been fully 
 10.11  paid, or that the cost of any uncompleted road construction or 
 10.12  survey expenses are covered by a bond or escrow account payable 
 10.13  to the entities responsible for providing or completing the 
 10.14  roads or surveys.  The escrow account must be with an 
 10.15  independent escrow agent. 
 10.16     The subdivider must also provide to the commissioner a copy 
 10.17  of the federal Housing and Urban Development exemption order and 
 10.18  the most recent annual confirmation letter which indicates that 
 10.19  the order is still in effect. 
 10.20     If the closing services are provided by the subdivider or 
 10.21  an affiliate of the subdivider, purchasers must manually initial 
 10.22  in the Housing and Urban Development Lot Information Statement 
 10.23  both the disclosure on all the liens, reservations, taxes, 
 10.24  assessments, easements, and restrictions applicable to the lot 
 10.25  purchased and the disclosure on the risks of not obtaining clear 
 10.26  title. 
 10.27     The commissioner may, by rule or order, suspend, revoke, or 
 10.28  further condition the exemptions contained in clauses (f), (g), 
 10.29  (h), (i), and (j), or may require such further information as 
 10.30  may be necessary for the protection of purchasers. 
 10.31     The commissioner may by rule or order suspend, revoke, or 
 10.32  further condition the exemptions contained in clauses (f), (g), 
 10.33  (h), and (i) or may require such further information as may be 
 10.34  necessary for the protection of purchasers.  
 10.35     The rulemaking authority in this subdivision does not 
 10.36  include emergency rulemaking authority pursuant to chapter 14. 
 11.1      Sec. 11.  Minnesota Statutes 1994, section 155A.08, 
 11.2   subdivision 3, is amended to read: 
 11.3      Subd. 3.  [HEALTH AND SANITARY STANDARDS.] Minimum health 
 11.4   and sanitary standards for the operation of a salon shall be 
 11.5   established by rule.  A salon shall not be located in a room 
 11.6   used for residential purposes.  If a salon is in the residence 
 11.7   of a person practicing cosmetology, the rooms used for the 
 11.8   practice of cosmetology shall be completely partitioned off from 
 11.9   the living quarters.  There shall be an inspection at least 
 11.10  annually The salon may be inspected as often as the commissioner 
 11.11  considers necessary to affirm compliance.  
 11.12     Sec. 12.  Minnesota Statutes 1994, section 155A.09, 
 11.13  subdivision 7, is amended to read: 
 11.14     Subd. 7.  [INSPECTIONS.] All schools shall may be inspected 
 11.15  at least once a year as often as the commissioner considers 
 11.16  necessary to affirm compliance.  The commissioner shall have the 
 11.17  authority to assess the cost of the inspection to the school.  
 11.18     Sec. 13.  Minnesota Statutes 1994, section 155A.095, is 
 11.19  amended to read: 
 11.20     155A.095 [INSPECTIONS.] 
 11.21     The commissioner is responsible for inspecting salons and 
 11.22  schools licensed pursuant to this chapter to assure compliance 
 11.23  with the requirements of this chapter.  The commissioner shall 
 11.24  direct department resources first to the inspection of those 
 11.25  licensees who fail to meet the requirements of law, have 
 11.26  indicated that they present a greater risk to the public, or 
 11.27  have otherwise, in the opinion of the commissioner, demonstrated 
 11.28  that they require a greater degree of regulatory attention.  In 
 11.29  no event shall a salon or school be inspected less often than 
 11.30  once each year. 
 11.31     Sec. 14.  Minnesota Statutes 1994, section 332.34, is 
 11.32  amended to read: 
 11.33     332.34 [BOND.] 
 11.34     The commissioner of commerce shall require each collection 
 11.35  agency licensee to annually file and maintain in force a 
 11.36  corporate surety bond, in a form to be prescribed by, and 
 12.1   acceptable to, the commissioner, and in the sum of $20,000.  An 
 12.2   applicant for a new or renewal license may request that the 
 12.3   amount of the bond be reduced to an amount not less than 
 12.4   $5,000.  This request may be granted upon a showing that the 
 12.5   total dollar amount received from debtors by the collection 
 12.6   agency in the preceding fiscal year did not exceed $30,000.  A 
 12.7   collection agency may deposit cash in and with a depository 
 12.8   acceptable to the commissioner in an amount and in the manner 
 12.9   prescribed and approved by the commissioner in lieu of a bond. 
 12.10     Sec. 15.  [332.395] [COMMISSIONER'S POWER OVER INEFFECTIVE 
 12.11  LICENSES.] 
 12.12     If a license lapses, is surrendered, withdrawn, terminated, 
 12.13  or otherwise becomes ineffective, the commissioner of commerce 
 12.14  may do either or both of the following:  (1) institute a 
 12.15  proceeding under section 45.027 within two years after the 
 12.16  license was last effective and enter a revocation or suspension 
 12.17  order as of the last date on which the license was in effect; 
 12.18  (2) impose a civil penalty as provided for in section 45.027, 
 12.19  subdivision 6. 
 12.20     Sec. 16.  Minnesota Statutes 1994, section 345.41, is 
 12.21  amended to read: 
 12.22     345.41 [REPORT OF ABANDONED PROPERTY.] 
 12.23     (a) Every person holding funds or other property, tangible 
 12.24  or intangible, presumed abandoned under sections 345.31 to 
 12.25  345.60 shall report annually to the commissioner with respect to 
 12.26  the property as hereinafter provided. 
 12.27     (b) The report shall be verified and shall include: 
 12.28     (1) except with respect to traveler's checks and money 
 12.29  orders, the name, if known, and last known address, if any, of 
 12.30  each person appearing from the records of the holder to be the 
 12.31  owner of any property of the value of $100 or more presumed 
 12.32  abandoned under sections 345.31 to 345.60; 
 12.33     (2) in case of unclaimed funds of life insurance 
 12.34  corporations, the full name of the policyholder, insured or 
 12.35  annuitant and that person's last known address according to the 
 12.36  life insurance corporation's records; 
 13.1      (3) the nature and identifying number, if any, or 
 13.2   description of the property and the amount appearing from the 
 13.3   records to be due, except that items of value under $100 each 
 13.4   may be reported in aggregate; 
 13.5      (4) the date when the property became payable, demandable 
 13.6   or returnable, and the date of the last transaction with the 
 13.7   owner with respect to the property; and 
 13.8      (5) other information which the commissioner prescribes by 
 13.9   rule as necessary for the administration of sections 345.31 to 
 13.10  345.60. 
 13.11     (c) If the person holding property presumed abandoned is a 
 13.12  successor to other persons who previously held the property for 
 13.13  the owner, or if the holder has changed a name while holding the 
 13.14  property, the holder shall file with the report all prior known 
 13.15  names and addresses of each holder of the property. 
 13.16     (d) The report shall be filed before November 1 of each 
 13.17  year as of June 30 next preceding, but the report of life 
 13.18  insurance corporations shall be filed before October 1 of each 
 13.19  year as of December 31 next preceding.  The commissioner may 
 13.20  postpone the reporting date upon written request by any person 
 13.21  required to file a report. 
 13.22     (e) If the holder of property presumed abandoned under 
 13.23  sections 345.31 to 345.60 knows the whereabouts of the owner and 
 13.24  if the owner's claim has not been barred by the statute of 
 13.25  limitations, the holder shall, before filing the annual report, 
 13.26  inform the owner of the steps necessary to prevent abandonment 
 13.27  from being presumed.  Not more than 120 days before filing the 
 13.28  report required by this section, the holder in possession of 
 13.29  property abandoned and subject to custody as unclaimed property 
 13.30  under this chapter shall send written notice to the presumed 
 13.31  owner at that owner's last known address informing the owner 
 13.32  that the holder is in possession of property subject to this 
 13.33  chapter and advising the owner of the steps necessary to prevent 
 13.34  abandonment if: 
 13.35     (1) the holder has in its records an address for the 
 13.36  presumed owner that the holder's records do not disclose to be 
 14.1   inaccurate; 
 14.2      (2) the claim of the apparent owner is not barred by the 
 14.3   statute of limitations; and 
 14.4      (3) the property has a value of $100 or more. 
 14.5      (f) Verification, if made by a partnership, shall be 
 14.6   executed by a partner; if made by an unincorporated association 
 14.7   or private corporation, by an officer, and if made by a public 
 14.8   corporation, by its chief fiscal officer. 
 14.9      (g) Holders of property described in section 345.32 shall 
 14.10  not impose any charges against property which is described in 
 14.11  section 345.32, clause (a), (b) or (c). 
 14.12     (h) Any person who has possession of property which the 
 14.13  person has reason to believe will be reportable in the future as 
 14.14  unclaimed property may, with the permission of the commissioner, 
 14.15  report and deliver such property prior to the date required for 
 14.16  reporting in accordance with this section. 
 14.17     Sec. 17.  Minnesota Statutes 1994, section 345.42, is 
 14.18  amended to read: 
 14.19     345.42 [NOTICE AND PUBLICATION OF LISTS OF ABANDONED 
 14.20  PROPERTY.] 
 14.21     Subdivision 1.  On or before April 1 of each year Within 
 14.22  the calendar year next following the year in which abandoned 
 14.23  property has been paid or delivered to the commissioner, the 
 14.24  commissioner shall cause notice to be published at least once 
 14.25  but not more than twice in an English language newspaper of 
 14.26  general circulation in the county in this state in which is 
 14.27  located the last known address of any person to be named in the 
 14.28  notice.  If no address is listed or if the address is outside 
 14.29  this state, the notice shall be published in the county in which 
 14.30  the holder of the abandoned property has a principal place of 
 14.31  business within this state. 
 14.32     Subd. 2.  The published notice shall be entitled "notice of 
 14.33  names of persons appearing to be owners of abandoned property," 
 14.34  and shall contain: 
 14.35     (a) the names in alphabetical order and last known 
 14.36  addresses, if any, of persons listed in the report and entitled 
 15.1   to notice within the county as hereinbefore specified; 
 15.2      (b) a statement that information concerning the amount or 
 15.3   description of the property and the name and address of the 
 15.4   holder may be obtained by any persons possessing an interest in 
 15.5   the property by addressing an inquiry to the 
 15.6   commissioner explaining that property of the owner has been 
 15.7   presumed to be abandoned and has been taken into the protective 
 15.8   custody of the commissioner; and 
 15.9      (c) a statement that if proof of claim is not presented by 
 15.10  the owner to the holder and if the owner's right to receive the 
 15.11  property is not established to the holder's satisfaction within 
 15.12  65 days from the date of the second published notice, the 
 15.13  abandoned property will be placed not later than 85 days after 
 15.14  such publication date in the custody of the commissioner to whom 
 15.15  all further claims must thereafter be directed information about 
 15.16  the abandoned property and its return to the apparent owner may 
 15.17  be obtained at any time by a person having a legal or beneficial 
 15.18  interest in that property by making an inquiry to the 
 15.19  commissioner. 
 15.20     The commissioner is not required to publish in such notice 
 15.21  any item of less than $100 unless the commissioner deems such 
 15.22  publication to be in the public interest. 
 15.23     Subd. 3.  On or before April 1 of each year Within the 
 15.24  calendar year next following the year in which abandoned 
 15.25  property has been paid or delivered to the commissioner, the 
 15.26  commissioner may mail a notice to each person having an address 
 15.27  listed therein who appears to be entitled to property of the 
 15.28  value of $100 or more presumed abandoned under sections 345.31 
 15.29  to 345.60.  Said notice shall contain: 
 15.30     (a) a statement that, according to a report filed with the 
 15.31  commissioner, property is being held to which the addressee 
 15.32  appears entitled; 
 15.33     (b) the name and address of the person holding the property 
 15.34  and any necessary information regarding changes of name and 
 15.35  address of the holder a statement explaining that property of 
 15.36  the owner has been presumed to be abandoned and has been taken 
 16.1   into the protective custody of the commissioner; and 
 16.2      (c) a statement that, if satisfactory proof of claim is not 
 16.3   presented by the owner to the holder by the date specified in 
 16.4   the published notice, the property will be placed in the custody 
 16.5   of the commissioner to whom all further claims must be directed 
 16.6   information about the abandoned property and its return to the 
 16.7   apparent owner may be obtained at any time by a person having a 
 16.8   legal or beneficial interest in that property by making an 
 16.9   inquiry to the commissioner. 
 16.10     Subd. 4.  This section is not applicable to sums payable on 
 16.11  traveler's checks or money orders presumed abandoned under 
 16.12  section 345.32. 
 16.13     Sec. 18.  Minnesota Statutes 1994, section 345.43, is 
 16.14  amended by adding a subdivision to read: 
 16.15     Subd. 2a.  [HOLDER'S OBLIGATIONS.] At the time of the 
 16.16  filing of the report required under section 345.41 and with that 
 16.17  report, the holder reporting property presumed abandoned and 
 16.18  subject to custody as unclaimed property shall pay or deliver to 
 16.19  the commissioner all of the property shown on the report and 
 16.20  remaining unclaimed by the apparent owner. 
 16.21     Upon written request showing good cause, the commissioner 
 16.22  may postpone the payment or delivery upon the terms or 
 16.23  conditions the commissioner considers necessary and appropriate. 
 16.24     The property paid or delivered to the commissioner shall 
 16.25  include all interest, dividends, increments, and accretions due, 
 16.26  payable, or distributable on the property on November 1, or 
 16.27  October 1 for a life insurance company.  If payment or delivery 
 16.28  is postponed, the property paid or delivered to the commissioner 
 16.29  shall include accretions due, payable, or distributable on the 
 16.30  day that the property is paid or delivered to the commissioner. 
 16.31     Sec. 19.  Minnesota Statutes 1994, section 345.515, is 
 16.32  amended to read: 
 16.33     345.515 [AGREEMENTS TO LOCATE REPORTED PROPERTY.] 
 16.34     It is unlawful for a person to seek or receive from another 
 16.35  person or contract with a person for a fee or compensation for 
 16.36  locating property knowing it to have been reported or paid or 
 17.1   delivered to the commissioner pursuant to chapter 345 prior to 
 17.2   seven months after the date of delivery of the property by the 
 17.3   holder to published notice by the commissioner as required by 
 17.4   section 345.43 345.42. 
 17.5      No agreement entered into after seven months from the date 
 17.6   of delivery of the property by the holder to published notice by 
 17.7   the commissioner is valid if a person thereby undertakes to 
 17.8   locate property included in a report for a fee or other 
 17.9   compensation exceeding ten percent of the value of the 
 17.10  recoverable property unless the agreement is in writing and 
 17.11  signed by the owner and discloses the nature and value of the 
 17.12  property and the name and address of the holder thereof as such 
 17.13  facts have been reported.  Nothing in this section shall be 
 17.14  construed to prevent an owner from asserting at any time that an 
 17.15  agreement to locate property is based upon an excessive or 
 17.16  unjust consideration. 
 17.17     Sec. 20.  Minnesota Statutes 1994, section 359.01, 
 17.18  subdivision 1, is amended to read: 
 17.19     Subdivision 1.  [RESIDENT NOTARIES.] The governor may 
 17.20  appoint and commission as notaries public, by and with the 
 17.21  advice and consent of the senate, as many citizens of this state 
 17.22  or resident aliens, over the age of 18 years, as the governor 
 17.23  considers necessary.  The commissioner of commerce shall perform 
 17.24  all duties necessary to appoint and commission notaries public 
 17.25  under this section on the governor's behalf. 
 17.26     Sec. 21.  Minnesota Statutes 1994, section 359.01, 
 17.27  subdivision 2, is amended to read: 
 17.28     Subd. 2.  [NONRESIDENT NOTARIES.] Notwithstanding the 
 17.29  provisions of subdivision 1, The governor may appoint as notary 
 17.30  public, by and with the advice and consent of the senate, or the 
 17.31  commissioner of commerce, acting on the governor's behalf, may 
 17.32  appoint as notary public a person who is not a resident of this 
 17.33  state if: 
 17.34     (1) the person is a resident of Wisconsin, Iowa, North 
 17.35  Dakota, or South Dakota, and of a county that shares a boundary 
 17.36  with this state; 
 18.1      (2) the person designates the commissioner as agent for the 
 18.2   service of process for all purposes relating to notarial acts 
 18.3   and for receipt of all correspondence relating to notarial acts. 
 18.4      Sec. 22.  Minnesota Statutes 1994, section 359.02, is 
 18.5   amended to read: 
 18.6      359.02 [TERM.] 
 18.7      A notary commissioned under section 359.01 holds office for 
 18.8   five years, unless sooner removed by the governor or the 
 18.9   district court, or by action of the commissioner.  Within 30 
 18.10  days before the expiration of the commission a notary may be 
 18.11  reappointed for a new term to commence and to be designated in 
 18.12  the new commission as beginning upon the day immediately 
 18.13  following the date of the expiration.  The reappointment takes 
 18.14  effect and is valid although the appointing governor may not be 
 18.15  in the office of governor on the effective day. 
 18.16     (a) All notary commissions issued before January 31, 1995, 
 18.17  will expire on January 31, 1995. 
 18.18     (b) All notary commissions issued after January 31, 1995, 
 18.19  will expire at the end of the licensing period, which will end 
 18.20  every fifth year following January 31, 1995. 
 18.21     (c) All notary commissions issued during a licensing period 
 18.22  expire at the end of that period as set forth in this section. 
 18.23     Sec. 23.  Minnesota Statutes 1994, section 359.061, is 
 18.24  amended to read: 
 18.25     359.061 [RECORD OF COMMISSION; CERTIFICATE.] 
 18.26     The commission of every notary shall be recorded in the 
 18.27  office of the court administrator of the district court of the 
 18.28  notary's county of appointment residence, in a record kept for 
 18.29  that purpose.  The court administrator, when requested, shall 
 18.30  certify to official acts in the manner and for the fees 
 18.31  prescribed by statute or court rule. 
 18.32     Sec. 24.  [REPEALER.] 
 18.33     Minnesota Statutes 1994, section 345.43, subdivisions 1 and 
 18.34  2, are repealed. 
 18.35     Sec. 25.  [EFFECTIVE DATES.] 
 18.36     Sections 7 to 9 are effective the day following final 
 19.1   enactment. 
 19.2                              ARTICLE 2
 19.3                              SECURITIES
 19.4      Section 1.  Minnesota Statutes 1994, section 45.027, is 
 19.5   amended by adding a subdivision to read: 
 19.6      Subd. 7a.  [AUTHORIZED DISCLOSURES OF INFORMATION AND 
 19.7   DATA.] The commissioner may release and disclose any active or 
 19.8   inactive investigative information and data on licensees to any 
 19.9   national securities exchange or national securities association 
 19.10  registered under the Securities Exchange Act of 1934 when 
 19.11  necessary for the requesting agency in initiating, furthering, 
 19.12  or completing an investigation. 
 19.13     Sec. 2.  Minnesota Statutes 1994, section 80A.05, 
 19.14  subdivision 1, is amended to read: 
 19.15     Subdivision 1.  A broker-dealer, agent or investment 
 19.16  adviser may obtain an initial or renewal license by filing with 
 19.17  the commissioner or a designee an application together with a 
 19.18  consent to service of process pursuant to section 80A.27, 
 19.19  subdivision 7.  The application shall be on a form prescribed by 
 19.20  the commissioner and shall contain whatever information the 
 19.21  commissioner requires concerning such matters as the applicant's 
 19.22  form and place of organization, proposed method of doing 
 19.23  business and financial condition, the qualifications and 
 19.24  experience of the applicant, including, in the case of a 
 19.25  broker-dealer or investment adviser, the qualifications and 
 19.26  experience of any partner, officer, director or controlling 
 19.27  person, any injunction or administrative order or conviction of 
 19.28  a misdemeanor involving securities and any conviction of a 
 19.29  felony.  The commissioner may by order, with respect to any 
 19.30  particular application, require the submission of information 
 19.31  concerning any other matters which the commissioner determines 
 19.32  are relevant to the application.  The commissioner may by rule 
 19.33  or order require an applicant for an initial license to publish 
 19.34  an announcement of the application in one or more specified 
 19.35  newspapers published in this state. 
 19.36     If no denial order is in effect, no proceeding is pending 
 20.1   under section 80A.07, and all of the requirements of this 
 20.2   subdivision and subdivision 3 have been complied with, the 
 20.3   licensing becomes effective 30 days after an application is 
 20.4   filed.  The commissioner may by rule or order specify an earlier 
 20.5   effective date, and may by order defer the effective date until 
 20.6   30 days after the filing of any amendment.  
 20.7      An application that is incomplete will be considered 
 20.8   withdrawn if no activity occurs with respect to the application 
 20.9   for a period of 120 days.  Notwithstanding section 80A.28, 
 20.10  subdivision 1, paragraph (c), no part of the filing fee shall be 
 20.11  returned if a registration statement is withdrawn according to 
 20.12  this subdivision. 
 20.13     Sec. 3.  Minnesota Statutes 1994, section 80A.06, 
 20.14  subdivision 3, is amended to read: 
 20.15     Subd. 3.  If the information contained in any document 
 20.16  filed with the commissioner is or becomes inaccurate or 
 20.17  incomplete in any material respect, the licensee shall 
 20.18  promptly within 30 days file a correcting amendment unless 
 20.19  notification of the correction has been given under section 
 20.20  80A.04, subdivision 2.  
 20.21     Sec. 4.  Minnesota Statutes 1994, section 80A.09, is 
 20.22  amended by adding a subdivision to read: 
 20.23     Subd. 5.  [WITHDRAWAL.] A registration statement that is 
 20.24  incomplete will be considered withdrawn if no activity occurs 
 20.25  with respect to the application for a period of 120 days.  
 20.26  Notwithstanding section 80A.28, subdivision 1, paragraph (c), no 
 20.27  part of the filing fee shall be returned if a registration 
 20.28  statement is withdrawn according to this subdivision. 
 20.29     Sec. 5.  Minnesota Statutes 1994, section 80A.10, 
 20.30  subdivision 4, is amended to read: 
 20.31     Subd. 4.  [WITHDRAWAL.] A registration statement that has 
 20.32  been on file with the commissioner for a period of nine months 
 20.33  and has not become effective is considered to have been 
 20.34  withdrawn.  If the registration statement has been amended, the 
 20.35  nine-month period must be computed from the date of the latest 
 20.36  amendment. is pending effectiveness will be considered withdrawn 
 21.1   if no activity occurs with respect to the application for a 
 21.2   period of 120 days.  Notwithstanding the provisions of section 
 21.3   80A.28, subdivision 1, paragraph (c), no part of the filing fee 
 21.4   shall be returned if a registration statement is 
 21.5   withdrawn pursuant according to this subdivision. 
 21.6      Sec. 6.  Minnesota Statutes 1994, section 80A.11, is 
 21.7   amended by adding a subdivision to read: 
 21.8      Subd. 5.  [WITHDRAWAL.] A registration statement that is 
 21.9   pending effectiveness will be considered withdrawn if no 
 21.10  activity occurs with respect to the application for a period of 
 21.11  120 days.  Notwithstanding section 80A.28, subdivision 1, 
 21.12  paragraph (c), no part of the filing fee shall be returned if a 
 21.13  registration statement is withdrawn according to this 
 21.14  subdivision. 
 21.15     Sec. 7.  Minnesota Statutes 1994, section 80A.14, is 
 21.16  amended by adding a subdivision to read: 
 21.17     Subd. 20.  [QUALIFIED CHARITY.] "Qualified charity" means 
 21.18  an organization that is described in section 501(c)(3) of the 
 21.19  Internal Revenue Code and that is not a private foundation as 
 21.20  described in section 509 of the Internal Revenue Code.  
 21.21     Sec. 8.  Minnesota Statutes 1994, section 80A.14, is 
 21.22  amended by adding a subdivision to read: 
 21.23     Subd. 21.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
 21.24  means the Internal Revenue Code of 1986, as amended, United 
 21.25  States Code, title 26, section 1 et seq.  
 21.26     Sec. 9.  Minnesota Statutes 1994, section 80A.14, is 
 21.27  amended by adding a subdivision to read: 
 21.28     Subd. 22.  [POOLED INCOME FUND.] "Pooled income fund" means 
 21.29  a trust that meets the requirements of a pooled income fund as 
 21.30  defined in section 642(C)(5) of the Internal Revenue Code, 
 21.31  provided that the remainder beneficiary is a qualified charity. 
 21.32     Sec. 10.  Minnesota Statutes 1994, section 80A.14, is 
 21.33  amended by adding a subdivision to read: 
 21.34     Subd. 23.  [CHARITABLE REMAINDER TRUST.] "Charitable 
 21.35  remainder trust" means a trust that meets the requirements of 
 21.36  either a charitable remainder annuity trust or a charitable 
 22.1   remainder unitrust as defined in section 664 of the Internal 
 22.2   Revenue Code, provided that the remainder beneficiary is a 
 22.3   qualified charity. 
 22.4      Sec. 11.  Minnesota Statutes 1994, section 80A.14, is 
 22.5   amended by adding a subdivision to read: 
 22.6      Subd. 24.  [CHARITABLE LEAD TRUST.] "Charitable lead trust" 
 22.7   means a trust that meets the requirements of a charitable lead 
 22.8   trust as described in section 170(F)(2) of the Internal Revenue 
 22.9   Code, provided that the lead beneficiary is a qualified charity. 
 22.10     Sec. 12.  Minnesota Statutes 1994, section 80A.14, is 
 22.11  amended by adding a subdivision to read: 
 22.12     Subd. 25.  [CHARITABLE GIFT ANNUITY.] "Charitable gift 
 22.13  annuity" means an annuity that meets the requirements of a 
 22.14  charitable gift annuity as defined in section 501(m)(5) of the 
 22.15  Internal Revenue Code. 
 22.16     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 22.17  80A.15, subdivision 1, is amended to read: 
 22.18     Subdivision 1.  The following securities are exempted from 
 22.19  sections 80A.08 and 80A.16: 
 22.20     (a) Any security, including a revenue obligation, 
 22.21  guaranteed by the United States, any state, any political 
 22.22  subdivision of a state or any corporate or other instrumentality 
 22.23  of one or more of the foregoing; but this exemption shall not 
 22.24  include any industrial revenue bond.  Pursuant to section 106(c) 
 22.25  of the Secondary Mortgage Market Enhancement Act of 1984, Public 
 22.26  Law Number 98-440, this exemption does not apply to a security 
 22.27  that is offered or sold pursuant to section 106(a)(1) or (2) of 
 22.28  that act. 
 22.29     (b) Any security issued or guaranteed by Canada, any 
 22.30  Canadian province, any political subdivision of any province, 
 22.31  any agency or corporate or other instrumentality of one or more 
 22.32  of the foregoing, if the security is recognized as a valid 
 22.33  obligation by the issuer or guarantor; but this exemption shall 
 22.34  not include any revenue obligation payable solely from payments 
 22.35  to be made in respect of property or money used under a lease, 
 22.36  sale or loan arrangement by or for a nongovernmental industrial 
 23.1   or commercial enterprise. 
 23.2      (c) Any security issued by and representing an interest in 
 23.3   or a debt of, or guaranteed by, any bank organized under the 
 23.4   laws of the United States, or any bank, savings institution or 
 23.5   trust company organized under the laws of any state and subject 
 23.6   to regulation in respect of the issuance or guarantee of its 
 23.7   securities by a governmental authority of that state. 
 23.8      (d) Any security issued by and representing an interest in 
 23.9   or a debt of, or guaranteed by, any federal savings association, 
 23.10  or any savings association or similar association organized 
 23.11  under the laws of any state and authorized to do business in 
 23.12  this state. 
 23.13     (e) Any security issued or guaranteed by any federal credit 
 23.14  union or any credit union, or similar association organized and 
 23.15  supervised under the laws of this state. 
 23.16     (f) Any security listed or approved for listing upon notice 
 23.17  of issuance on the New York Stock Exchange, the American Stock 
 23.18  Exchange, the Midwest Stock Exchange, the Pacific Stock 
 23.19  Exchange, or the Chicago Board Options Exchange; any other 
 23.20  security of the same issuer which is of senior or substantially 
 23.21  equal rank; any security called for by subscription rights or 
 23.22  warrants so listed or approved; or any warrant or right to 
 23.23  purchase or subscribe to any of the foregoing.  This exemption 
 23.24  does not apply to second tier listings on any of the exchanges 
 23.25  in this paragraph. 
 23.26     (g) Any commercial paper which arises out of a current 
 23.27  transaction or the proceeds of which have been or are to be used 
 23.28  for current transactions, and which evidences an obligation to 
 23.29  pay cash within nine months of the date of issuance, exclusive 
 23.30  of days of grace, or any renewal of the paper which is likewise 
 23.31  limited, or any guarantee of the paper or of any renewal which 
 23.32  are not advertised for sale to the general public in newspapers 
 23.33  or other publications of general circulation or otherwise, or by 
 23.34  radio, television or direct mailing. 
 23.35     (h) Any interest in any employee's savings, stock purchase, 
 23.36  pension, profit sharing or similar benefit plan, or a 
 24.1   self-employed person's retirement plan. 
 24.2      (i) Any security issued or guaranteed by any railroad, 
 24.3   other common carrier or public utility which is subject to 
 24.4   regulation in respect to the issuance or guarantee of its 
 24.5   securities by a governmental authority of the United States. 
 24.6      (j) Any interest in a common trust fund or similar fund 
 24.7   maintained by a state bank or trust company organized and 
 24.8   operating under the laws of Minnesota, or a national bank 
 24.9   wherever located, for the collective investment and reinvestment 
 24.10  of funds contributed thereto by the bank or trust company in its 
 24.11  capacity as trustee, executor, administrator, or guardian; and 
 24.12  any interest in a collective investment fund or similar fund 
 24.13  maintained by the bank or trust company, or in a separate 
 24.14  account maintained by an insurance company, for the collective 
 24.15  investment and reinvestment of funds contributed thereto by the 
 24.16  bank, trust company or insurance company in its capacity as 
 24.17  trustee or agent, which interest is issued in connection with an 
 24.18  employee's savings, pension, profit sharing or similar benefit 
 24.19  plan, or a self-employed person's retirement plan. 
 24.20     (k) Any security which meets all of the following 
 24.21  conditions: 
 24.22     (1) If the issuer is not organized under the laws of the 
 24.23  United States or a state, it has appointed a duly authorized 
 24.24  agent in the United States for service of process and has set 
 24.25  forth the name and address of the agent in its prospectus; 
 24.26     (2) A class of the issuer's securities is required to be 
 24.27  and is registered under section 12 of the Securities Exchange 
 24.28  Act of 1934, and has been so registered for the three years 
 24.29  immediately preceding the offering date; 
 24.30     (3) Neither the issuer nor a significant subsidiary has had 
 24.31  a material default during the last seven years, or for the 
 24.32  period of the issuer's existence if less than seven years, in 
 24.33  the payment of (i) principal, interest, dividend, or sinking 
 24.34  fund installment on preferred stock or indebtedness for borrowed 
 24.35  money, or (ii) rentals under leases with terms of three years or 
 24.36  more; 
 25.1      (4) The issuer has had consolidated net income, before 
 25.2   extraordinary items and the cumulative effect of accounting 
 25.3   changes, of at least $1,000,000 in four of its last five fiscal 
 25.4   years including its last fiscal year; and if the offering is of 
 25.5   interest bearing securities, has had for its last fiscal year, 
 25.6   net income, before deduction for income taxes and depreciation, 
 25.7   of at least 1-1/2 times the issuer's annual interest expense, 
 25.8   giving effect to the proposed offering and the intended use of 
 25.9   the proceeds.  For the purposes of this clause "last fiscal 
 25.10  year" means the most recent year for which audited financial 
 25.11  statements are available, provided that such statements cover a 
 25.12  fiscal period ended not more than 15 months from the 
 25.13  commencement of the offering; 
 25.14     (5) If the offering is of stock or shares other than 
 25.15  preferred stock or shares, the securities have voting rights and 
 25.16  the rights include (i) the right to have at least as many votes 
 25.17  per share, and (ii) the right to vote on at least as many 
 25.18  general corporate decisions, as each of the issuer's outstanding 
 25.19  classes of stock or shares, except as otherwise required by law; 
 25.20  and 
 25.21     (6) If the offering is of stock or shares, other than 
 25.22  preferred stock or shares, the securities are owned beneficially 
 25.23  or of record, on any date within six months prior to the 
 25.24  commencement of the offering, by at least 1,200 persons, and on 
 25.25  that date there are at least 750,000 such shares outstanding 
 25.26  with an aggregate market value, based on the average bid price 
 25.27  for that day, of at least $3,750,000.  In connection with the 
 25.28  determination of the number of persons who are beneficial owners 
 25.29  of the stock or shares of an issuer, the issuer or broker-dealer 
 25.30  may rely in good faith for the purposes of this clause upon 
 25.31  written information furnished by the record owners. 
 25.32     (l) Any certificate of indebtedness sold or issued for 
 25.33  investment, other than a certificate of indebtedness pledged as 
 25.34  a security for a loan made contemporaneously therewith, and any 
 25.35  savings account or savings deposit issued, by an industrial loan 
 25.36  and thrift company. 
 26.1      (m) Any security designated or approved for designation 
 26.2   upon notice of issuance on the NASDAQ/National Market System; 
 26.3   any other security of the same issuer that is of senior or 
 26.4   substantially equal rank; any security called for by 
 26.5   subscription rights or warrants so designated or approved; or 
 26.6   any warrant or right to purchase or subscribe to any of the 
 26.7   securities referred to in this paragraph; provided that the 
 26.8   National Market System provides the commissioner with notice of 
 26.9   any material change in its designation requirements.  The 
 26.10  commissioner may revoke this exemption if the commissioner 
 26.11  determines that the designation requirements are not enforced or 
 26.12  are amended in a manner that lessens protection to investors. 
 26.13     Sec. 14.  Minnesota Statutes 1994, section 80A.15, 
 26.14  subdivision 2, is amended to read: 
 26.15     Subd. 2.  The following transactions are exempted from 
 26.16  sections 80A.08 and 80A.16: 
 26.17     (a) Any sales, whether or not effected through a 
 26.18  broker-dealer, provided that: 
 26.19     (1) no person shall make more than ten sales of securities 
 26.20  of the same issuer pursuant to this exemption, exclusive of 
 26.21  sales according to clause (2), during any period of 12 
 26.22  consecutive months; provided further, that in the case of sales 
 26.23  by an issuer, except sales of securities registered under the 
 26.24  Securities Act of 1933 or exempted by section 3(b) of that 
 26.25  act, (1) (i) the seller reasonably believes that all buyers are 
 26.26  purchasing for investment, and (2) (ii) the securities are not 
 26.27  advertised for sale to the general public in newspapers or other 
 26.28  publications of general circulation or otherwise, or by radio, 
 26.29  television, electronic means or similar communications media, or 
 26.30  through a program of general solicitation by means of mail or 
 26.31  telephone.; and 
 26.32     (2) no issuer shall make more than 25 sales of its 
 26.33  securities according to this exemption, exclusive of sales 
 26.34  pursuant to clause (1), during any period of 12 consecutive 
 26.35  months; provided further, that the issuer meets the conditions 
 26.36  in clause (1) and, in addition meets the following additional 
 27.1   conditions:  (i) files with the commissioner, ten days before a 
 27.2   sale according to this clause, a statement of issuer on a form 
 27.3   prescribed by the commissioner; and (ii) no commission or other 
 27.4   remuneration is paid or given directly or indirectly for 
 27.5   soliciting any prospective buyers in this state in connection 
 27.6   with a sale according to this clause except reasonable and 
 27.7   customary commissions paid by the issuer to a broker-dealer 
 27.8   licensed under this chapter. 
 27.9      (b) Any nonissuer distribution of an outstanding security 
 27.10  if (1) either Moody's, Fitch's, or Standard & Poor's Securities 
 27.11  Manuals, or other recognized manuals approved by the 
 27.12  commissioner contains the names of the issuer's officers and 
 27.13  directors, a balance sheet of the issuer as of a date not more 
 27.14  than 18 months prior to the date of the sale, and a profit and 
 27.15  loss statement for the fiscal year preceding the date of the 
 27.16  balance sheet, and (2) the issuer or its predecessor has been in 
 27.17  active, continuous business operation for the five-year period 
 27.18  next preceding the date of sale, and (3) if the security has a 
 27.19  fixed maturity or fixed interest or dividend provision, the 
 27.20  issuer has not, within the three preceding fiscal years, 
 27.21  defaulted in payment of principal, interest, or dividends on the 
 27.22  securities. 
 27.23     (c) The execution of any orders by a licensed broker-dealer 
 27.24  for the purchase or sale of any security, pursuant to an 
 27.25  unsolicited offer to purchase or sell; provided that the 
 27.26  broker-dealer acts as agent for the purchaser or seller, and has 
 27.27  no direct material interest in the sale or distribution of the 
 27.28  security, receives no commission, profit, or other compensation 
 27.29  from any source other than the purchaser and seller and delivers 
 27.30  to the purchaser and seller written confirmation of the 
 27.31  transaction which clearly itemizes the commission, or other 
 27.32  compensation. 
 27.33     (d) Any nonissuer sale of notes or bonds secured by a 
 27.34  mortgage lien if the entire mortgage, together with all notes or 
 27.35  bonds secured thereby, is sold to a single purchaser at a single 
 27.36  sale. 
 28.1      (e) Any judicial sale, exchange, or issuance of securities 
 28.2   made pursuant to an order of a court of competent jurisdiction. 
 28.3      (f) The sale, by a pledge holder, of a security pledged in 
 28.4   good faith as collateral for a bona fide debt. 
 28.5      (g) Any offer or sale to a bank, savings institution, trust 
 28.6   company, insurance company, investment company as defined in the 
 28.7   Investment Company Act of 1940, pension or profit sharing trust, 
 28.8   or other financial institution or institutional buyer, or to a 
 28.9   broker-dealer, whether the purchaser is acting for itself or in 
 28.10  some fiduciary capacity. 
 28.11     (h) Any sales by an issuer to the number of persons that 
 28.12  shall not exceed 25 persons in this state, or 35 persons if the 
 28.13  sales are made in compliance with Regulation D promulgated by 
 28.14  the Securities and Exchange Commission, Code of Federal 
 28.15  Regulations, title 17, sections 230.501 to 230.506, (other than 
 28.16  those designated in paragraph (a) or (g)), whether or not any of 
 28.17  the purchasers is then present in this state, if (1) the issuer 
 28.18  reasonably believes that all of the buyers in this state (other 
 28.19  than those designated in clause (g)) are purchasing for 
 28.20  investment, and (2) no commission or other remuneration is paid 
 28.21  or given directly or indirectly for soliciting any prospective 
 28.22  buyer in this state (other than those designated in clause (g)), 
 28.23  except reasonable and customary commissions paid by the issuer 
 28.24  to a broker-dealer licensed under this chapter, and (3) the 
 28.25  issuer has, ten days prior to any sale pursuant to this 
 28.26  paragraph, supplied the commissioner with a statement of issuer 
 28.27  on forms prescribed by the commissioner, containing the 
 28.28  following information:  (i) the name and address of the issuer, 
 28.29  and the date and state of its organization; (ii) the number of 
 28.30  units, price per unit, and a description of the securities to be 
 28.31  sold; (iii) the amount of commissions to be paid and the persons 
 28.32  to whom they will be paid; (iv) the names of all officers, 
 28.33  directors and persons owning five percent or more of the equity 
 28.34  of the issuer; (v) a brief description of the intended use of 
 28.35  proceeds; (vi) a description of all sales of securities made by 
 28.36  the issuer within the six-month period next preceding the date 
 29.1   of filing; and (vii) a copy of the investment letter, if any, 
 29.2   intended to be used in connection with any sale.  Sales that are 
 29.3   made more than six months before the start of an offering made 
 29.4   pursuant to this exemption or are made more than six months 
 29.5   after completion of an offering made pursuant to this exemption 
 29.6   will not be considered part of the offering, so long as during 
 29.7   those six-month periods there are no sales of unregistered 
 29.8   securities (other than those made pursuant to paragraph (a) or 
 29.9   (g)) by or for the issuer that are of the same or similar class 
 29.10  as those sold under this exemption.  The commissioner may by 
 29.11  rule or order as to any security or transaction or any type of 
 29.12  security or transaction, withdraw or further condition this 
 29.13  exemption, or increase the number of offers and sales permitted, 
 29.14  or waive the conditions in clause (1), (2), or (3) with or 
 29.15  without the substitution of a limitation or remuneration.  An 
 29.16  offer or sale of securities by an issuer made in reliance on the 
 29.17  exemptions provided by Rule 505 or 506 of Regulation D 
 29.18  promulgated by the Securities and Exchange Commission, Code of 
 29.19  Federal Regulations, title 17, sections 230.501 to 230.508, 
 29.20  subject to the conditions and definitions provided by Rules 501 
 29.21  to 503 of Regulation D, if the offer and sale also satisfies the 
 29.22  conditions and limitations in clauses (1) to (10). 
 29.23     (1) The exemption under this paragraph is not available for 
 29.24  the securities of an issuer if any of the persons described in 
 29.25  Rule 252(c) to (f) of Regulation A promulgated by the Securities 
 29.26  and Exchange Commission, Code of Federal Regulations, title 17, 
 29.27  sections 230.251 to 230.263:  
 29.28     (i) has filed a registration statement that is the subject 
 29.29  of a currently effective order entered against the issuer, its 
 29.30  officers, directors, general partners, controlling persons, or 
 29.31  affiliates, according to any state's law within five years 
 29.32  before the filing of the notice required under clause (5), 
 29.33  denying effectiveness to, or suspending or revoking the 
 29.34  effectiveness of, the registration statement; 
 29.35     (ii) has been convicted, within five years before the 
 29.36  filing of the notice required under clause (5), of a felony or 
 30.1   misdemeanor in connection with the offer, sale, or purchase of a 
 30.2   security or franchise, or a felony involving fraud or deceit, 
 30.3   including but not limited to forgery, embezzlement, obtaining 
 30.4   money under false pretenses, larceny, or conspiracy to defraud; 
 30.5      (iii) is subject to an effective administrative order or 
 30.6   judgment entered by a state securities administrator within five 
 30.7   years before the filing of the notice required under clause (5), 
 30.8   that prohibits, denies, or revokes the use of an exemption from 
 30.9   securities registration, that prohibits the transaction of 
 30.10  business by the person as a broker-dealer or agent, or that is 
 30.11  based on fraud, deceit, an untrue statement of a material fact, 
 30.12  or an omission to state a material fact; or 
 30.13     (iv) is subject to an order, judgment, or decree of a court 
 30.14  entered within five years before the filing of the notice 
 30.15  required under clause (5), temporarily, preliminarily, or 
 30.16  permanently restraining or enjoining the person from engaging in 
 30.17  or continuing any conduct or practice in connection with the 
 30.18  offer, sale, or purchase of a security, or the making of a false 
 30.19  filing with a state. 
 30.20     A disqualification under paragraph (h) involving a 
 30.21  broker-dealer or agent is waived if the broker-dealer or agent 
 30.22  is or continues to be licensed in the state in which the 
 30.23  administrative order or judgment was entered against the person 
 30.24  or if the broker-dealer or agent is or continues to be licensed 
 30.25  in this state as a broker-dealer or agent after notifying the 
 30.26  commissioner of the act or event causing disqualification. 
 30.27     The commissioner may waive a disqualification under 
 30.28  paragraph (h) upon a showing of good cause that it is not 
 30.29  necessary under the circumstances that use of the exemption be 
 30.30  denied. 
 30.31     A disqualification under paragraph (h) may be waived if the 
 30.32  state securities administrator or agency of the state that 
 30.33  created the basis for disqualification has determined, upon a 
 30.34  showing of good cause, that it is not necessary under the 
 30.35  circumstances that an exemption from registration of securities 
 30.36  under the state's laws be denied. 
 31.1      It is a defense to a violation of paragraph (h) based upon 
 31.2   a disqualification if the issuer sustains the burden of proof to 
 31.3   establish that the issuer did not know, and in the exercise of 
 31.4   reasonable care could not have known, that a disqualification 
 31.5   under paragraph (h) existed. 
 31.6      (2) This exemption must not be available to an issuer with 
 31.7   respect to a transaction that, although in technical compliance 
 31.8   with this exemption, is part of a plan or scheme to evade 
 31.9   registration or the conditions or limitations explicitly stated 
 31.10  in paragraph (h). 
 31.11     (3) No commission, finder's fee, or other remuneration 
 31.12  shall be paid or given, directly or indirectly, for soliciting a 
 31.13  prospective purchaser, unless the recipient is appropriately 
 31.14  registered, or exempt from registration, in this state as a 
 31.15  broker-dealer. 
 31.16     (4) Nothing in this exemption is intended to or should be 
 31.17  in any way construed as relieving issuers or persons acting on 
 31.18  behalf of issuers from providing disclosure to prospective 
 31.19  investors adequate to satisfy the antifraud provisions of the 
 31.20  securities law of Minnesota.  
 31.21     (5) The issuer shall file with commissioner a notice on 
 31.22  form D as adopted by the Securities and Exchange Commission 
 31.23  according to Regulation D, Code of Federal Regulations, title 
 31.24  17, section 230.502.  The notice must be filed not later than 15 
 31.25  days after the first sale in this state of securities in an 
 31.26  offering under this exemption.  Every notice on form D must be 
 31.27  manually signed by a person duly authorized by the issuer and 
 31.28  must be accompanied by a consent to service of process on a form 
 31.29  prescribed by the commissioner.  
 31.30     (6) A failure to comply with a term, condition, or 
 31.31  requirement of paragraph (h) will not result in loss of the 
 31.32  exemption for an offer or sale to a particular individual or 
 31.33  entity if the person relying on the exemption shows that:  (i) 
 31.34  the failure to comply did not pertain to a term, condition, or 
 31.35  requirement directly intended to protect that particular 
 31.36  individual or entity, and the failure to comply was 
 32.1   insignificant with respect to the offering as a whole; and (ii) 
 32.2   a good faith and reasonable attempt was made to comply with all 
 32.3   applicable terms, conditions, and requirements of paragraph (h), 
 32.4   except that, where an exemption is established only through 
 32.5   reliance upon this provision, the failure to comply shall 
 32.6   nonetheless constitute a violation of section 80A.08 and be 
 32.7   actionable by the commissioner.  
 32.8      (7) The issuer, upon request by the commissioner, shall, 
 32.9   within ten days of the request, furnish to the commissioner a 
 32.10  copy of any and all information, documents, or materials 
 32.11  furnished to investors or offerees in connection with the offer 
 32.12  and sale according to paragraph (h).  
 32.13     (8) Neither compliance nor attempted compliance with the 
 32.14  exemption provided by paragraph (h), nor the absence of an 
 32.15  objection or order by the commissioner with respect to an offer 
 32.16  or sale of securities undertaken according to this exemption, 
 32.17  shall be considered to be a waiver of a condition of the 
 32.18  exemption or considered to be a confirmation by the commissioner 
 32.19  of the availability of this exemption.  
 32.20     (9) The commissioner may, by rule or order, increase the 
 32.21  number of purchasers or waive any other condition of this 
 32.22  exemption.  
 32.23     (10) The determination whether offers and sales made in 
 32.24  reliance on the exemption set forth in paragraph (h) shall be 
 32.25  integrated with offers and sales according to other paragraphs 
 32.26  of this subdivision shall be made according to the integration 
 32.27  standard set forth in Rule 502 of Regulation D promulgated by 
 32.28  the Securities and Exchange Commission, Code of Federal 
 32.29  Regulations, title 17, section 230.502.  If not subject to 
 32.30  integration according to that rule, offers and sales according 
 32.31  to paragraph (h) shall not otherwise be integrated with offers 
 32.32  and sales according to other exemptions set forth in this 
 32.33  subdivision. 
 32.34     (i) Any offer (but not a sale) of a security for which a 
 32.35  registration statement has been filed under sections 80A.01 to 
 32.36  80A.31, if no stop order or refusal order is in effect and no 
 33.1   public proceeding or examination looking toward an order is 
 33.2   pending; and any offer of a security if the sale of the security 
 33.3   is or would be exempt under this section.  The commissioner may 
 33.4   by rule exempt offers (but not sales) of securities for which a 
 33.5   registration statement has been filed as the commissioner deems 
 33.6   appropriate, consistent with the purposes of sections 80A.01 to 
 33.7   80A.31. 
 33.8      (j) The offer and sale by a cooperative organized under 
 33.9   chapter 308A or under the laws of another state, of its 
 33.10  securities when the securities are offered and sold only to its 
 33.11  members, or when the purchase of the securities is necessary or 
 33.12  incidental to establishing membership in the cooperative, or 
 33.13  when such securities are issued as patronage dividends.  This 
 33.14  paragraph applies to a cooperative organized under the laws of 
 33.15  another state only if the cooperative has filed with the 
 33.16  commissioner a consent to service of process under section 
 33.17  80A.27, subdivision 7, and has, not less than ten days prior to 
 33.18  the issuance or delivery, furnished the commissioner with a 
 33.19  written general description of the transaction and any other 
 33.20  information that the commissioner requires by rule or otherwise. 
 33.21     (l) The issuance and delivery of any securities of one 
 33.22  corporation to another corporation or its security holders in 
 33.23  connection with a merger, exchange of shares, or transfer of 
 33.24  assets whereby the approval of stockholders of the other 
 33.25  corporation is required to be obtained, provided, that the 
 33.26  commissioner has been furnished with a general description of 
 33.27  the transaction and with other information as the commissioner 
 33.28  by rule prescribes not less than ten days prior to the issuance 
 33.29  and delivery. 
 33.30     (m) Any transaction between the issuer or other person on 
 33.31  whose behalf the offering is made and an underwriter or among 
 33.32  underwriters. 
 33.33     (n) The distribution by a corporation of its or other 
 33.34  securities to its own security holders as a stock dividend or as 
 33.35  a dividend from earnings or surplus or as a liquidating 
 33.36  distribution; or upon conversion of an outstanding convertible 
 34.1   security; or pursuant to a stock split or reverse stock split. 
 34.2      (o) Any offer or sale of securities by an affiliate of the 
 34.3   issuer thereof if:  (1) a registration statement is in effect 
 34.4   with respect to securities of the same class of the issuer and 
 34.5   (2) the offer or sale has been exempted from registration by 
 34.6   rule or order of the commissioner.  
 34.7      (p) Any transaction pursuant to an offer to existing 
 34.8   security holders of the issuer, including persons who at the 
 34.9   time of the transaction are holders of convertible securities, 
 34.10  nontransferable warrants, or transferable warrants exercisable 
 34.11  within not more than 90 days of their issuance, if:  (1) no 
 34.12  commission or other remuneration (other than a standby 
 34.13  commission) is paid or given directly or indirectly for 
 34.14  soliciting any security holder in this state; and (2) the 
 34.15  commissioner has been furnished with a general description of 
 34.16  the transaction and with other information as the commissioner 
 34.17  may by rule prescribe no less than ten days prior to the 
 34.18  transaction. 
 34.19     (q)  Any nonissuer sales of any security, including a 
 34.20  revenue obligation, issued by the state of Minnesota or any of 
 34.21  its political or governmental subdivisions, municipalities, 
 34.22  governmental agencies, or instrumentalities. 
 34.23     (r) Any transaction as to which the commissioner by rule or 
 34.24  order finds that registration is not necessary in the public 
 34.25  interest and for the protection of investors. 
 34.26     (s) An offer or sale of a security issued in connection 
 34.27  with an employee's stock purchase, savings, option, profit 
 34.28  sharing, pension, or similar employee benefit plan, if the 
 34.29  following conditions are met:  
 34.30     (1) the issuer, its parent corporation or any of its 
 34.31  majority-owned subsidiaries offers or sells the security 
 34.32  according to a written benefit plan or written contract relating 
 34.33  to the compensation of the purchaser; and 
 34.34     (2) the class of securities offered according to the plan 
 34.35  or contract, or if an option or right to purchase a security, 
 34.36  the class of securities to be issued upon the exercise of the 
 35.1   option or right, is registered under section 12 of the 
 35.2   Securities Exchange Act of 1934, or is a class of securities 
 35.3   with respect to which the issuer files reports according to 
 35.4   section 15(d) of the Securities Exchange Act of 1934; or 
 35.5      (3) the issuer fully complies with the provisions of Rule 
 35.6   701 as adopted by the Securities and Exchange Commission, Code 
 35.7   of Federal Regulations, title 12, section 230.701. 
 35.8      The issuer shall file not less than ten days before the 
 35.9   transaction, a general description of the transaction and any 
 35.10  other information that the commissioner requires by rule or 
 35.11  otherwise or, if applicable, a Securities and Exchange Form S-8. 
 35.12  Annually, within 90 days after the end of the issuer's fiscal 
 35.13  year, the issuer shall file a notice as provided with the 
 35.14  commissioner. 
 35.15     (t) Any sale of a security of an issuer that is a pooled 
 35.16  income fund, a charitable remainder trust, or a charitable lead 
 35.17  trust that has a qualified charity as the only charitable 
 35.18  beneficiary. 
 35.19     (u) Any sale by a qualified charity of a security that is a 
 35.20  charitable gift annuity if the issuer has a net worth, otherwise 
 35.21  defined as unrestricted fund balance, of not less than $300,000 
 35.22  and either:  (1) has been in continuous operation for not less 
 35.23  than three years; or (2) is a successor or affiliate of a 
 35.24  qualified charity that has been in continuous operation for not 
 35.25  less than three years. 
 35.26     Sec. 15.  Minnesota Statutes 1994, section 80A.15, 
 35.27  subdivision 3, is amended to read: 
 35.28     Subd. 3.  The commissioner may issue an order requiring any 
 35.29  person who claims the benefit of an exemption with respect to a 
 35.30  specific security or transaction, to show cause why the 
 35.31  exemption should not be revoked.  The order shall be calculated 
 35.32  to give reasonable notice of the time and place for hearing 
 35.33  thereon, and shall state the reasons for the entry of the 
 35.34  order.  The commissioner may by order summarily suspend an 
 35.35  exemption pending final determination of any order to show 
 35.36  cause.  If an exemption is suspended pending final determination 
 36.1   of an order to show cause, a hearing on the merits shall be held 
 36.2   within 30 days of the issuance of the order of suspension.  All 
 36.3   hearings shall be conducted in accordance with the provisions of 
 36.4   chapter 14.  After the hearing, the commissioner shall enter an 
 36.5   order making such disposition of the matter as the facts 
 36.6   require.  If the person claiming the benefit of the exemption 
 36.7   fails to appear at a hearing of which the person has been duly 
 36.8   notified, such person shall be deemed in default, and the 
 36.9   proceeding may be determined against the person upon 
 36.10  consideration of the order to show cause, the allegations of 
 36.11  which may be deemed to be true.  The commissioner may adopt 
 36.12  rules of procedure concerning all proceedings conducted pursuant 
 36.13  to this subdivision.  
 36.14     A notice filing that is incomplete is considered withdrawn 
 36.15  if no activity occurs with respect to the notice filing for a 
 36.16  period of 120 days. 
 36.17     Sec. 16.  Minnesota Statutes 1994, section 80C.01, is 
 36.18  amended by adding a subdivision to read: 
 36.19     Subd. 19.  [ASSIST THE PURCHASER IN FINDING 
 36.20  LOCATIONS.] "Assist the purchaser in finding locations" means to 
 36.21  directly assist the purchaser in finding locations, or to refer 
 36.22  the purchaser to any resource which assists in finding locations 
 36.23  and is affiliated with the seller through common ownership, 
 36.24  common control, a referral fee arrangement, or any other 
 36.25  business relationship.  "Assist the purchaser in finding 
 36.26  locations" does not include providing to the purchaser a written 
 36.27  list of resources which assist in finding locations, provided 
 36.28  that none of the resources on the list are affiliated with the 
 36.29  seller in any way. 
 36.30     Sec. 17.  Minnesota Statutes 1994, section 80C.05, is 
 36.31  amended by adding a subdivision to read: 
 36.32     Subd. 4.  An application for registration that has not 
 36.33  become effective will be considered withdrawn if no activity 
 36.34  occurs with respect to the application for a period of 120 days. 
 36.35     Sec. 18.  [REPEALER.] 
 36.36     Minnesota Statutes 1994, section 80A.14, subdivision 8, is 
 37.1   repealed. 
 37.2                              ARTICLE 3
 37.3                             REAL ESTATE
 37.4      Section 1.  Minnesota Statutes 1994, section 82.22, 
 37.5   subdivision 13, is amended to read: 
 37.6      Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
 37.7   renewal date, all real estate salespersons and all real estate 
 37.8   brokers shall be required to successfully complete 30 hours of 
 37.9   real estate continuing education, either as a student or a 
 37.10  lecturer, in courses of study approved by the commissioner, 
 37.11  during each 24-month license period.  At least 15 of the 30 
 37.12  credit hours must be completed during the first 12 months of the 
 37.13  24-month licensing period.  Salespersons and brokers whose 
 37.14  initial license period extends more than 12 months are required 
 37.15  to complete 15 hours of real estate continuing education during 
 37.16  the initial license period.  All continuing education must be 
 37.17  earned no later than May 31 of the renewal year.  Those 
 37.18  licensees who will receive a 12-month license on July 1, 1995, 
 37.19  because of the staggered implementation schedule must complete 
 37.20  15 hours of real estate continuing education as a requirement 
 37.21  for renewal on July 1, 1996.  Licensees may not claim credit for 
 37.22  continuing education not actually completed as of the date their 
 37.23  report of continuing education compliance is filed. 
 37.24     (b) The commissioner shall adopt rules defining the 
 37.25  standards for course and instructor approval, and may adopt 
 37.26  rules for the proper administration of this subdivision. 
 37.27     (c) Any program approved by Minnesota continuing legal 
 37.28  education shall be approved by the commissioner of commerce for 
 37.29  continuing education for real estate brokers and salespeople if 
 37.30  the program or any part thereof relates to real estate.  
 37.31     (d) As part of the continuing education requirements of 
 37.32  this section, the commissioner shall require that all real 
 37.33  estate brokers and salespersons receive: 
 37.34     (1) at least two hours of training during each license 
 37.35  period in courses in laws or regulations on agency 
 37.36  representation and disclosure; and 
 38.1      (2) at least two hours of training during each license 
 38.2   period in courses in state and federal fair housing laws, 
 38.3   regulations, and rules, or other antidiscrimination laws. 
 38.4      Clause (1) does not apply to real estate salespersons and 
 38.5   real estate brokers engaged solely in the commercial real estate 
 38.6   business who file with the commissioner a verification of this 
 38.7   status along with the continuing education report required under 
 38.8   paragraph (a). 
 38.9      (e) The commissioner is authorized to establish a procedure 
 38.10  for renewal of course accreditation. 
 38.11     Sec. 2.  Minnesota Statutes 1994, section 82A.11, is 
 38.12  amended by adding a subdivision to read: 
 38.13     Subd. 8.  [CANCELLATION BY HEIR.] A membership camping 
 38.14  contract that may be transferred by descent or devise must 
 38.15  provide that the heir or devisee may cancel the contract.  
 38.16  Cancellation of the contract relieves the heir or devisee of any 
 38.17  further obligations under the contract. 
 38.18     Sec. 3.  Minnesota Statutes 1994, section 82B.19, is 
 38.19  amended by adding a subdivision to read: 
 38.20     Subd. 4.  [RENEWAL OF ACCREDITATION.] The commissioner is 
 38.21  authorized to establish a procedure for renewal of course 
 38.22  accreditation. 
 38.23     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 38.24  386.66, is amended to read: 
 38.25     386.66 [BOND OR ABSTRACTER'S LIABILITY INSURANCE POLICY.] 
 38.26     Before a license shall be issued, the applicant shall file 
 38.27  with the commissioner a an annual bond or abstracter's liability 
 38.28  insurance policy for each license year, to be approved by the 
 38.29  commissioner, running to the state of Minnesota in the penal sum 
 38.30  of at least $100,000 conditioned for the payment by such 
 38.31  abstracter of any damages that may be sustained by or accrue to 
 38.32  any person by reason of or on account of any error, deficiency 
 38.33  or mistake arising wrongfully or negligently in any abstract, or 
 38.34  continuation thereof, or in any certificate showing ownership 
 38.35  of, or interest in, or liens upon any lands in the state of 
 38.36  Minnesota, whether registered or not, made by and issued by such 
 39.1   abstracter, provided however, that the aggregate liability of 
 39.2   the surety to all persons under such bond shall in no event 
 39.3   exceed the amount of such bond.  If the applicant intends to 
 39.4   engage in the business of abstracting in any county having more 
 39.5   than 200,000 inhabitants, the bond or insurance policy required 
 39.6   herein shall be in the penal sum of at least $250,000.  
 39.7   Applicants that are title insurance companies regulated by 
 39.8   chapter 68A and licensed pursuant to sections 60A.02 and 60A.06, 
 39.9   subdivision 1, clause (7), and their employees or those having 
 39.10  cash or securities on deposit with the state of Minnesota in an 
 39.11  amount equal to the said bond or insurance policy shall be 
 39.12  exempt from furnishing the bond or an insurance policy herein 
 39.13  required but shall be liable to the same extent as if a bond or 
 39.14  insurance policy has been given and filed.  The bond or 
 39.15  insurance policy required hereunder shall be written by some 
 39.16  surety or other company authorized to do business in this state 
 39.17  issuing bonds or abstracter's liability insurance policies and 
 39.18  shall be issued for a period of one or more years, and renewed 
 39.19  for one or more years year at the date of expiration as 
 39.20  principal continues in business.  The aggregate liability of 
 39.21  such surety on such bond or insurance policy for all damages 
 39.22  shall, in no event, exceed the sum of said bond or insurance 
 39.23  policy. 
 39.24     Sec. 5.  [EFFECTIVE DATES.] 
 39.25     Sections 1 and 3 are effective the day following final 
 39.26  enactment. 
 39.27                             ARTICLE 4
 39.28                        BUILDING CONTRACTORS
 39.29     Section 1.  Minnesota Statutes 1994, section 326.87, is 
 39.30  amended by adding a subdivision to read: 
 39.31     Subd. 4.  [RENEWAL OF ACCREDITATION.] The commissioner is 
 39.32  authorized to establish a procedure for renewal of course 
 39.33  accreditation. 
 39.34     Sec. 2.  Minnesota Statutes 1994, section 326.91, is 
 39.35  amended by adding a subdivision to read: 
 39.36     Subd. 3.  [CERTIFICATE OF EXEMPTION HOLDERS.] For cause 
 40.1   shown under subdivision 1 or 2, the commissioner may deny, 
 40.2   suspend, or revoke a certificate of exemption issued under 
 40.3   section 326.84, subdivision 3, clause (5), in the same manner as 
 40.4   a license.  
 40.5      Sec. 3.  Minnesota Statutes 1994, section 326.91, is 
 40.6   amended by adding a subdivision to read: 
 40.7      Subd. 4.  [ACTION AGAINST UNLICENSED PERSONS.] Nothing in 
 40.8   this section prevents the commissioner from taking actions, 
 40.9   including cease and desist actions, against persons required to 
 40.10  be licensed under sections 326.83 to 326.991, based on conduct 
 40.11  that would provide grounds for administrative action against a 
 40.12  licensee under this section. 
 40.13     Sec. 4.  Minnesota Statutes 1994, section 326.991, is 
 40.14  amended to read: 
 40.15     326.991 [EXCEPTION.] 
 40.16     Subdivision 1.  The license requirement under section 
 40.17  326.84 does not apply to a residential building contractor, 
 40.18  residential remodeler, or specialty contractor licensed by the 
 40.19  city of St. Paul or the city of Minneapolis and who is 
 40.20  performing work within the legal boundaries of one of those 
 40.21  municipalities that municipality.  
 40.22     This subdivision expires March 31, 2000. 
 40.23     Subd. 2.  The commissioner may contract with the city of 
 40.24  Minneapolis and the city of St. Paul to administer this 
 40.25  licensing program. 
 40.26     Sec. 5.  [REPEALER.] 
 40.27     Minnesota Statutes 1994, sections 326.95, subdivision 4; 
 40.28  326.97, subdivision 3; and 326.99, are repealed. 
 40.29     Sec. 6.  [EFFECTIVE DATES.] 
 40.30     Sections 1 to 3 and 5 are effective the day following final 
 40.31  enactment. 
 40.32     Section 4 is effective April 1, 1996. 
 40.33                             ARTICLE 5
 40.34                           MISCELLANEOUS
 40.35     Section 1.  Minnesota Statutes 1995 Supplement, section 
 40.36  309.53, subdivision 3, is amended to read: 
 41.1      Subd. 3.  The financial statement shall include a balance 
 41.2   sheet, statement of income and expense, and statement of 
 41.3   functional expenses, shall be consistent with forms furnished by 
 41.4   the attorney general, and shall be prepared in accordance with 
 41.5   generally accepted accounting principles so as to make a full 
 41.6   disclosure of the following, including necessary allocations 
 41.7   between each item and the basis of such allocations: 
 41.8      (a) total receipts and total income from all sources; 
 41.9      (b) cost of management and general expenses; 
 41.10     (c) program services; 
 41.11     (d) cost of fund raising; 
 41.12     (d) (e) cost of public education; 
 41.13     (e) (f) funds or properties transferred out of state, with 
 41.14  explanation as to recipient and purpose; 
 41.15     (f) (g) total net amount disbursed or dedicated within this 
 41.16  state, broken down into total amounts disbursed or dedicated for 
 41.17  each major purpose, charitable or otherwise; 
 41.18     (g) (h) names of professional fund raisers used during the 
 41.19  accounting year and the financial compensation or and profit 
 41.20  resulting to each professional fund raiser; and 
 41.21     (h) (i) a list of the five highest paid directors, 
 41.22  officers, and employees of the organization that receive total 
 41.23  compensation of more than $50,000, together with the total 
 41.24  compensation paid to each.  Total compensation shall include 
 41.25  salaries, fees, bonuses, fringe benefits, severance payments, 
 41.26  and deferred compensation paid by the charitable organization 
 41.27  and all related organizations as that term is defined by section 
 41.28  317A.011, subdivision 18.  On July 1, 1997, and thereafter, the 
 41.29  charitable organization shall begin disclosure of the total 
 41.30  compensation of the five highest paid directors, officers, and 
 41.31  employees of any related organization if the related 
 41.32  organization receives funds from the charitable organization. 
 41.33     Unless otherwise required by this subdivision, the 
 41.34  financial statement need not be certified. 
 41.35     A financial statement of a charitable organization which 
 41.36  has received total revenue in excess of $350,000 for the 12 
 42.1   months of operation covered by the statement shall be 
 42.2   accompanied by an audited financial statement prepared in 
 42.3   accordance with generally accepted accounting principles that 
 42.4   has been examined by an independent certified public accountant 
 42.5   for the purpose of expressing an opinion.  In preparing the 
 42.6   audit the certified public accountant shall take into 
 42.7   consideration capital, endowment or other reserve funds, if any, 
 42.8   controlled by the charitable organization.  
 42.9      Sec. 2.  Minnesota Statutes 1994, section 309.57, 
 42.10  subdivision 1, is amended to read: 
 42.11     Subdivision 1.  [GENERAL.] Upon the application of the 
 42.12  attorney general the district court is vested with jurisdiction 
 42.13  to restrain, enjoin, and redress violations of sections 309.50 
 42.14  to 309.61.  The court may make any necessary order or judgment 
 42.15  including, but not limited to, injunctions, restitution, 
 42.16  appointment of a receiver for the defendant or the defendant's 
 42.17  assets, suspension of the defendant's registration, awards of 
 42.18  reasonable attorney fees, and costs of investigation and 
 42.19  litigation, and may award to the state civil penalties up to 
 42.20  $25,000 $40,000 for each violation of sections 309.50 to 
 42.21  309.61.  In ordering injunctive relief, the attorney general 
 42.22  shall not be required to establish irreparable harm but only a 
 42.23  violation of statute or that the requested order promotes the 
 42.24  public interest.  The court may, as appropriate, enter a consent 
 42.25  judgment or decree without the finding of illegality. 
 42.26     Sec. 3.  Minnesota Statutes 1994, section 325F.56, 
 42.27  subdivision 2, is amended to read: 
 42.28     Subd. 2.  "Repairs" means work performed for a total price 
 42.29  of more than $100 and less than $2,000 $7,500, including the 
 42.30  price of parts and materials, to restore a malfunctioning, 
 42.31  defective, or worn motor vehicle, appliance, or dwelling place 
 42.32  used primarily for personal, family, or household purposes and 
 42.33  not primarily for business or agricultural purposes.  "Repairs" 
 42.34  do not include service calls or estimates. 
 42.35     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 42.36  325G.203, is amended by adding a subdivision to read: 
 43.1      Subd. 11a.  For those assistive devices regulated under 
 43.2   section 153A.19, "nonconformity" means a mechanical defect and 
 43.3   not a condition of the device that is the result of normal use 
 43.4   which could be resolved through fitting adjustments, cleaning, 
 43.5   or proper care. 
 43.6      Sec. 5.  [EFFECTIVE DATE.] 
 43.7      Sections 1 to 4 are effective on the day following final 
 43.8   enactment.