1.1 	A bill for an act
1.2 	relating to commerce; regulating various licensees and other entities; modifying 
1.3 	definitions, informational requirements, continuing education requirements, 
1.4 	information reporting requirements, and notice requirements; making various 
1.5 	housekeeping, technical, and clarifying changes; regulating securities; 
1.6 	reorganizing and modifying various provisions relating to real estate brokers, 
1.7 	salespersons, and closing agents; modifying the membership requirements of, 
1.8 	and appointment authority to, the real estate appraiser advisory board; regulating 
1.9 	certain workers' compensation self-insurers;amending Minnesota Statutes 
1.10 	2008, sections 45.0112; 60A.084; 60A.204; 60A.36, by adding a subdivision; 
1.11 	60K.31, subdivision 10; 61A.092, subdivision 3; 62A.17, subdivision 5; 
1.12 	62A.65, subdivision 2; 62E.02, subdivision 15; 62E.14, subdivision 4c; 62L.05, 
1.13 	subdivision 4; 62S.24, subdivision 8; 62S.266, subdivision 4; 62S.29, subdivision 
1.14 	1; 72A.20, subdivisions 36, 37; 72A.492, subdivision 2; 72B.01; 72B.08, 
1.15 	subdivision 8; 79A.06, subdivision 5; 80A.41; 80A.46; 80A.65, subdivision 
1.16 	6; 82.17, subdivision 15, by adding subdivisions; 82.19; 82.21, subdivision 2; 
1.17 	82.24, subdivision 3; 82.29, subdivisions 4, 5, 8; 82.31, subdivisions 1, 2; 82.33, 
1.18 	subdivisions 1, 2, by adding a subdivision; 82.34, subdivisions 1, 2, 4, 5, 13; 
1.19 	82.39; 82.41, subdivisions 1, 2, by adding a subdivision; 82.45, subdivision 
1.20 	3, by adding subdivisions; 82.48, subdivisions 2, 3; 82B.05, as amended; 
1.21 	326.3382, subdivision 3; 326B.33, subdivision 16; 326B.56, subdivision 2; 
1.22 	326B.86, subdivision 2; 326B.921, subdivision 6; 327B.04, subdivision 4; 
1.23 	340A.409, subdivision 1; Minnesota Statutes 2009 Supplement, sections 45.027, 
1.24 	subdivision 1; 45.30, subdivision 4; 60A.39, subdivisions 1, 4, 5; 60A.9572, 
1.25 	subdivision 6; 62A.3099, subdivision 18; 65A.29, subdivision 13; 72B.03, 
1.26 	subdivision 2; 72B.045, subdivision 1; 82.31, subdivision 4; 82.32; 326B.46, 
1.27 	subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 
1.28 	82; repealing Minnesota Statutes 2008, sections 72B.04; 82.19, subdivision 3; 
1.29 	82.22, subdivisions 1, 6, 7, 8, 9; 82.31, subdivision 6; 82.34, subdivision 16; 
1.30 	82.41, subdivisions 3, 7; 332.335; Minnesota Statutes 2009 Supplement, section 
1.31 	65B.133, subdivision 3.
1.32 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.33 	Section 1. Minnesota Statutes 2008, section 45.0112, is amended to read:
1.34 	45.0112 STREET AND E-MAIL ADDRESSES REQUIRED.
2.1 	Licensees or applicants for licenses issued by the commissioner shall provide to the 
2.2 	commissioner a residence telephone number, a street address where the licensee actually 
2.3 	resides, and a street address where the licensee's business is physically located, and a 
2.4 	current e-mail address for business use. A post office box address is not sufficient to 
2.5 	satisfy this requirement. The individual shall notify the department of any change in street 
2.6 	address, e-mail address for business use, or residence telephone number within ten days.

2.7 	Sec. 2. Minnesota Statutes 2009 Supplement, section 45.027, subdivision 1, is 
2.8 	amended to read:
2.9 		Subdivision 1.General powers. In connection with the duties and responsibilities 
2.10 	entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner 
2.11 	of commerce may:
2.12 	(1) make public or private investigations within or without this state as the 
2.13 	commissioner considers necessary to determine whether any person has violated or is 
2.14 	about to violate any law, rule, or order related to the duties and responsibilities entrusted 
2.15 	to the commissioner;
2.16 	(2) require or permit any person to file a statement in writing, under oath or otherwise 
2.17 	as the commissioner determines, as to all the facts and circumstances concerning the 
2.18 	matter being investigated;
2.19 	(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the 
2.20 	duties and responsibilities entrusted to the commissioner;
2.21 	(4) conduct investigations and hold hearings for the purpose of compiling 
2.22 	information related to the duties and responsibilities entrusted to the commissioner;
2.23 	(5) examine the books, accounts, records, and files of every licensee, and of every 
2.24 	person who is engaged in any activity regulated; the commissioner or a designated 
2.25 	representative shall have free access during normal business hours to the offices and 
2.26 	places of business of the person, and to all books, accounts, papers, records, files, safes, 
2.27 	and vaults maintained in the place of business;
2.28 	(6) publish information which is contained in any order issued by the commissioner; 
2.29 	(7) require any person subject to duties and responsibilities entrusted to the 
2.30 	commissioner, to report all sales or transactions that are regulated. The reports must 
2.31 	be made within ten days after the commissioner has ordered the report. The report is 
2.32 	accessible only to the respondent and other governmental agencies unless otherwise 
2.33 	ordered by a court of competent jurisdiction; and
2.34 	(8) assess a licensee natural person or entity subject to the jurisdiction of the 
2.35 	commissioner the necessary expenses of the investigation performed by the department 
3.1 	when an investigation is made by order of the commissioner. The cost of the investigation 
3.2 	shall be determined by the commissioner and is based on the salary cost of investigators 
3.3 	or assistants and at an average rate per day or fraction thereof so as to provide for the 
3.4 	total cost of the investigation. All money collected must be deposited into the general 
3.5 	fund. A natural person licensed under chapter 60K or 82 shall not be charged costs of 
3.6 	an investigation if the investigation results in no finding of a violation. This clause 
3.7 	does not apply to a natural person or entity already subject to the assessment provisions 
3.8 	of sections 60A.03 and 60A.031.

3.9 	Sec. 3. Minnesota Statutes 2009 Supplement, section 45.30, subdivision 4, is amended 
3.10 	to read:
3.11 		Subd. 4.Credit earned. (a) Upon completion of approved courses, students must 
3.12 	earn one hour of continuing education credit for each hour approved by the commissioner. 
3.13 	Continuing education courses must be attended in their entirety in order to receive credit 
3.14 	for the number of approved hours.
3.15 	(b) Qualified instructors will earn three hours of continuing education credit for 
3.16 	each classroom hour of approved instruction that they deliver (1) independently, or (2) 
3.17 	as part of a team presentation in a course of two hours or less, if they attend the course 
3.18 	in its entirety. For licensees other than appraisers, no more than half of the continuing 
3.19 	education hours required for renewal of a license may be earned as a qualified instructor at 
3.20 	the rate of three hours of continuing education credit for each classroom hour of approved 
3.21 	instruction. For licensed appraisers, no more than one-half of the continuing education 
3.22 	hours required for renewal of a license may be earned as a qualified instructor. No credit 
3.23 	will be earned if the licensee has previously obtained credit for the same course as either 
3.24 	a student or instructor during the same licensing period.
3.25 	(c) A licensee must not receive credit for more than eight hours of continuing 
3.26 	education in one day.

3.27 	Sec. 4. Minnesota Statutes 2008, section 60A.084, is amended to read:
3.28 	60A.084 NOTIFICATION ON GROUP POLICIES.
3.29 	An employer providing life or health benefits may not change benefits, limit 
3.30 	coverage, or otherwise restrict participation until the certificate holder or enrollee has 
3.31 	been notified of any changes, limitations, or restrictions. Notice in a format which 
3.32 	meets the requirements of the Employee Retirement Income Security Act, United States 
3.33 	Code Annotated, title 29, sections 1001 to 1461,United States Department of Labor is 
3.34 	satisfactory for compliance with this section.

4.1 	Sec. 5. Minnesota Statutes 2008, section 60A.204, is amended to read:
4.2 	60A.204 ADDITIONAL CHARGES AND FEES AND COMMISSIONS.
4.3 		Subdivision 1.Placement fees. A surplus lines licensee may charge, in addition to 
4.4 	the premium charged by an eligible or ineligible surplus lines insurer, a fee to cover the 
4.5 	cost incurred in the placement of the policy which exceeds $25, but only to the extent that 
4.6 	the actual additional cost incurred for services performed by persons or entities unrelated 
4.7 	to the licensee exceeds that amount.
4.8 		Subd. 2.Regulation of fees. A surplus lines licensee may charge a fee charged 
4.9 	pursuant to subdivision 1 shall and commission, in addition to the premium, that is not be
4.10 	excessive or discriminatory. The licensee shall maintain complete documentation of all 
4.11 	fees and commissions charged. Those fees shall not be included as part of the premium for 
4.12 	purposes of the computation of the premium taxes.
4.13 		Subd. 3.Commission charges. Notwithstanding the provisions of subdivision 1, a 
4.14 	licensee may add a commission charge if the insurer quotes a rate net of commission and 
4.15 	the commission is not excessive or discriminatory.

4.16 	Sec. 6. Minnesota Statutes 2008, section 60A.36, is amended by adding a subdivision 
4.17 	to read:
4.18 		Subd. 2a.Third-party notices. An insurer shall provide notice to a third party if:
4.19 	(1) the policyholder has notified the insurer of the identity of the third party; and
4.20 	(2) the third party is a licensing authority authorized by statute to receive the notice or 
4.21 	a state, city, or county governmental unit on whose behalf the insured is providing services.

4.22 	Sec. 7. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 1, is 
4.23 	amended to read:
4.24 		Subdivision 1.Issuance. A licensed insurer or insurance producer may provide to a 
4.25 	third party a certificate of insurance which documents insurance coverage. The purpose of
4.26 	For the purposes of this chapter, a certificate of insurance is to provide a document that 
4.27 	provides evidence of property or liability insurance coverage and the amount of insurance 
4.28 	issued, and does not convey any contractual rights to the certificate holder.

4.29 	Sec. 8. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 4, is 
4.30 	amended to read:
4.31 		Subd. 4.Cancellation notice. A certificate provided to a third party must not 
4.32 	provide for notice of cancellation that exceeds the statutory notice of cancellation provided 
4.33 	to the policyholder or a period of notice specified in the policy.

5.1 	Sec. 9. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 5, is 
5.2 	amended to read:
5.3 		Subd. 5.Filing. An insurer not using the standard ACORD or ISO form "Certificate 
5.4 	of Insurance" shall file with the commissioner, prior to its use, the form of certificate or 
5.5 	memorandum of insurance coverage that will be used a similar alternative "Certificate 
5.6 	of Insurance" covering the same information for use by the insurer. Filed forms may not 
5.7 	be amended at the request of a third party.

5.8 	EFFECTIVE DATE. This section is effective January 1, 2011.

5.9 	Sec. 10. Minnesota Statutes 2009 Supplement, section 60A.9572, subdivision 6, 
5.10 	is amended to read:
5.11 		Subd. 6.Disclosures. The applicant shall provide information on forms required 
5.12 	by the commissioner. The commissioner shall have authority, at any time, to require 
5.13 	the applicant to fully disclose the identity of all stockholders who hold more than ten 
5.14 	percent of the shares of the company, partners, officers, members, and employees, and 
5.15 	the commissioner may, in the exercise of the commissioner's discretion, refuse to issue a 
5.16 	license in the name of a legal entity if not satisfied that any officer, employee, stockholder, 
5.17 	partner, or member of the legal entity who may materially influence the applicant's 
5.18 	conduct meets the standards of sections 60A.957 to 60A.9585.

5.19 	Sec. 11. Minnesota Statutes 2008, section 60K.31, subdivision 10, is amended to read:
5.20 		Subd. 10.Limited lines insurance. "Limited lines insurance" means those lines 
5.21 	of insurance defined in section 60K.38, subdivision 1, paragraph (c), or any other line of 
5.22 	insurance that the commissioner considers necessary to recognize for the purposes of 
5.23 	complying with section 60K.39, subdivision 5 6.  

5.24 	Sec. 12. Minnesota Statutes 2008, section 61A.092, subdivision 3, is amended to read:
5.25 		Subd. 3.Notice of options. Upon termination of or layoff from employment 
5.26 	of a covered employee, the employer shall inform the employee within 14 days after 
5.27 	termination or layoff of:
5.28 	(1) the employee's right to elect to continue the coverage;
5.29 	(2) the amount the employee must pay monthly to the employer to retain the 
5.30 	coverage;
5.31 	(3) the manner in which and the office of the employer to which the payment to 
5.32 	the employer must be made; and
5.33 	(4) the time by which the payments to the employer must be made to retain coverage.
6.1 	The employee has 60 days within which to elect coverage. The 60-day period shall 
6.2 	begin to run on the date coverage would otherwise terminate or on the date upon which 
6.3 	notice of the right to coverage is received, whichever is later.
6.4 	If the covered employee or covered dependent dies during the 60-day election period 
6.5 	and before the covered employee makes an election to continue or reject continuation, 
6.6 	then the covered employee will be considered to have elected continuation of coverage. 
6.7 	The beneficiary previously selected by the former employee or covered dependent would 
6.8 	then be entitled to a death benefit equal to the amount of insurance that could have been 
6.9 	continued less any unpaid premium owing as of the date of death.
6.10 	Notice must be in writing and sent by first class mail to the employee's last known 
6.11 	address which the employee has provided to the employer.
6.12 	A notice in substantially the following form is sufficient: "As a terminated or laid 
6.13 	off employee, the law authorizes you to maintain your group insurance benefits, in an 
6.14 	amount equal to the amount of insurance in effect on the date you terminated or were laid 
6.15 	off from employment, for a period of up to 18 months. To do so, you must notify your 
6.16 	former employer within 60 days of your receipt of this notice that you intend to retain this 
6.17 	coverage and must make a monthly payment of $............ at ............. by the ............. of 
6.18 	each month."

6.19 	Sec. 13. Minnesota Statutes 2008, section 62A.17, subdivision 5, is amended to read:
6.20 		Subd. 5.Notice of options. Upon the termination of or lay off from employment of 
6.21 	an eligible employee, the employer shall inform the employee within ten14 days after 
6.22 	termination or lay off of:
6.23 	(a) (1) the right to elect to continue the coverage;
6.24 	(b) (2) the amount the employee must pay monthly to the employer to retain the 
6.25 	coverage;
6.26 	(c) (3) the manner in which and the office of the employer to which the payment to 
6.27 	the employer must be made; and
6.28 	(d) (4) the time by which the payments to the employer must be made to retain 
6.29 	coverage.
6.30 	If the policy, contract, or health care plan is administered by a trust, the employer is 
6.31 	relieved of the obligation imposed by clauses (a) (1) to (d) (4). The trust shall inform the 
6.32 	employee of the information required by clauses (a) (1) to (d) (4).
6.33 	The employee shall have 60 days within which to elect coverage. The 60-day period 
6.34 	shall begin to run on the date plan coverage would otherwise terminate or on the date upon 
6.35 	which notice of the right to coverage is received, whichever is later.
7.1 	Notice must be in writing and sent by first class mail to the employee's last known 
7.2 	address which the employee has provided the employer or trust.
7.3 	A notice in substantially the following form shall be sufficient: "As a terminated or 
7.4 	laid off employee, the law authorizes you to maintain your group medical insurance for 
7.5 	a period of up to 18 months. To do so you must notify your former employer within 60 
7.6 	days of your receipt of this notice that you intend to retain this coverage and must make a 
7.7 	monthly payment of $.......... to ........... at .......... by the ............... of each month."

7.8 	Sec. 14. Minnesota Statutes 2009 Supplement, section 62A.3099, subdivision 18, 
7.9 	is amended to read:
7.10 		Subd. 18.Medicare supplement policy or certificate. "Medicare supplement 
7.11 	policy or certificate" means a group or individual policy of accident and sickness insurance 
7.12 	or a subscriber contract of hospital and medical service associations or health maintenance 
7.13 	organizations, other than those policies or certificates covered by section 1833 of the 
7.14 	federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued 
7.15 	policy under a demonstration project specified under amendments to the federal Social 
7.16 	Security Act, which is advertised, marketed, or designed primarily as a supplement to 
7.17 	reimbursements under Medicare for the hospital, medical, or surgical expenses of persons 
7.18 	eligible for Medicare or as a supplement to Medicare Advantage plans established under 
7.19 	Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage 
7.20 	plans established under Medicare Part C, outpatient prescription drug plans established 
7.21 	under Medicare Part D, or any health care prepayment plan that provides benefits under an 
7.22 	agreement under section 1833(a)(1)(A) of the Social Security Act, or any policy issued to 
7.23 	an employer or employers or to the trustee of a fund established by an employer where 
7.24 	only employees or retirees, and dependents of employees or retirees, are eligible for 
7.25 	coverage, or any policy issued to a labor union or similar employee organization.

7.26 	Sec. 15. Minnesota Statutes 2008, section 62A.65, subdivision 2, is amended to read:
7.27 		Subd. 2.Guaranteed renewal. No individual health plan may be offered, sold, 
7.28 	issued, or renewed to a Minnesota resident unless the health plan provides that the plan 
7.29 	is guaranteed renewable at a premium rate that does not take into account the claims 
7.30 	experience or any change in the health status of any covered person that occurred after 
7.31 	the initial issuance of the health plan to the person. The premium rate upon renewal 
7.32 	must also otherwise comply with this section. A health carrier must not refuse to renew 
7.33 	an individual health plan prior to enrollment in Medicare Parts A and B, except for 
7.34 	nonpayment of premiums, fraud, or misrepresentation.

8.1 	Sec. 16. Minnesota Statutes 2008, section 62E.02, subdivision 15, is amended to read:
8.2 		Subd. 15.Medicare. "Medicare" means part A and part B of the United States 
8.3 	Social Security Act, title XVIII, as amended, United States Code, title 42, sections 1394, et 
8.4 	seq. the Health Insurance for the Aged Act, title XVIII of the Social Security Amendments 
8.5 	of 1965, United States Code, title 42, sections 1395 to 1395hhh, as amended, or title I, 
8.6 	part I, of Public Law 89-97, as amended.

8.7 	Sec. 17. Minnesota Statutes 2008, section 62E.14, subdivision 4c, is amended to read:
8.8 		Subd. 4c.Waiver of preexisting conditions for persons whose coverage is 
8.9 	terminated or who exceed the maximum lifetime benefit. (a) A Minnesota resident 
8.10 	may enroll in the comprehensive health plan with a waiver of the preexisting condition 
8.11 	limitation described in subdivision 3 if that persons's application for coverage is received 
8.12 	by the writing carrier no later than 90 days after termination of prior coverage and if the 
8.13 	termination is for reasons other than fraud or nonpayment of premiums.
8.14 	For purposes of this paragraph, termination of prior coverage includes exceeding the 
8.15 	maximum lifetime benefit of existing coverage.
8.16 	Coverage in the comprehensive health plan is effective on the date of termination 
8.17 	of prior coverage. The availability of conversion rights does not affect a person's rights 
8.18 	under this paragraph.
8.19 	This section does not apply to prior coverage provided under policies designed 
8.20 	primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense 
8.21 	incurred basis, or policies providing only accident coverage.
8.22 	(b) An eligible individual, as defined under the Health Insurance Portability and 
8.23 	Accountability Act (HIPAA), United States Code, chapter 42, section 300gg-41(b) may 
8.24 	enroll in the comprehensive health insurance plan with a waiver of the preexisting 
8.25 	condition limitation described in subdivision 3 and a waiver of the evidence of rejection or 
8.26 	similar events described in subdivision 1, clause (c). The eligible individual must apply 
8.27 	for enrollment under this paragraph by submitting a substantially complete application 
8.28 	that is received by the writing carrier no later than 63 days after termination of prior 
8.29 	coverage, and coverage under the comprehensive health insurance plan is effective as 
8.30 	of the date of receipt of the complete application. The six-month durational residency 
8.31 	requirement provided in section 62E.02, subdivision 13, does not apply with respect to 
8.32 	eligibility for enrollment under this paragraph, but the applicant must be a Minnesota 
8.33 	resident as of the date that the application was received by the writing carrier. A person's 
8.34 	eligibility to enroll under this paragraph does not affect the person's eligibility to enroll 
8.35 	under any other provision.  
9.1 	(c) A qualifying individual, as defined in the Internal Revenue Code of 1986, section 
9.2 	35(e)(2)(B), who is eligible under the Federal Trade Act of 2002 for the credit Health 
9.3 	Coverage Tax Credit (HCTC) for health insurance costs under the Internal Revenue Code 
9.4 	of 1986, section 35, may enroll in the comprehensive health insurance plan with a waiver 
9.5 	of the preexisting condition limitation described in subdivision 3, and without presenting 
9.6 	evidence of rejection or similar requirements described in subdivision 1, paragraph (c). 
9.7 	The six-month durational residency requirement provided in section 62E.02, subdivision 
9.8 	13, does not apply with respect to eligibility for enrollment under this paragraph, but the 
9.9 	applicant must be a Minnesota resident as of the date of application. A person's eligibility 
9.10 	to enroll under this paragraph does not affect the person's eligibility to enroll under any 
9.11 	other provision. This paragraph is intended solely to meet the minimum requirements 
9.12 	necessary to qualify the comprehensive health insurance plan as qualified health coverage 
9.13 	under the Internal Revenue Code of 1986, section 35(e)(2).  

9.14 	Sec. 18. Minnesota Statutes 2008, section 62L.05, subdivision 4, is amended to read:
9.15 		Subd. 4.Benefits. The medical services and supplies listed in this subdivision are 
9.16 	the benefits that must be covered by the small employer plans described in subdivisions 
9.17 	2 and 3. Benefits under this subdivision may be provided through the managed care 
9.18 	procedures practiced by health carriers:
9.19 	(1) inpatient and outpatient hospital services, excluding services provided for the 
9.20 	diagnosis, care, or treatment of chemical dependency or a mental illness or condition, 
9.21 	other than those conditions specified in clauses (10), and (11), and (12). The health 
9.22 	care services required to be covered under this clause must also be covered if rendered 
9.23 	in a nonhospital environment, on the same basis as coverage provided for those same 
9.24 	treatments or services if rendered in a hospital, provided, however, that this sentence must 
9.25 	not be interpreted as expanding the types or extent of services covered;
9.26 	(2) physician, chiropractor, and nurse practitioner services for the diagnosis or 
9.27 	treatment of illnesses, injuries, or conditions;
9.28 	(3) diagnostic x-rays and laboratory tests;
9.29 	(4) ground transportation provided by a licensed ambulance service to the nearest 
9.30 	facility qualified to treat the condition, or as otherwise required by the health carrier;
9.31 	(5) services of a home health agency if the services qualify as reimbursable services 
9.32 	under Medicare;
9.33 	(6) services of a private duty registered nurse if medically necessary, as determined 
9.34 	by the health carrier;
10.1 	(7) the rental or purchase, as appropriate, of durable medical equipment, other than 
10.2 	eyeglasses and hearing aids, unless coverage is required under section 62Q.675; 
10.3 	(8) child health supervision services up to age 18, as defined in section 62A.047; 
10.4 	(9) maternity and prenatal care services, as defined in sections 62A.041 and 62A.047; 
10.5 	(10) inpatient hospital and outpatient services for the diagnosis and treatment of 
10.6 	certain mental illnesses or conditions, as defined by the International Classification of 
10.7 	Diseases-Clinical Modification (ICD-9-CM), seventh edition (1990) and as classified 
10.8 	as ICD-9 codes 295 to 299; and
10.9 	(11) ten hours per year of outpatient mental health diagnosis or treatment for 
10.10 	illnesses or conditions not described in clause (10);
10.11 	(12) 60 hours per year of outpatient treatment of chemical dependency; and
10.12 	(13)(11) 50 percent of eligible charges for prescription drugs, up to a separate 
10.13 	annual maximum out-of-pocket expense of $1,000 per individual for prescription drugs, 
10.14 	and 100 percent of eligible charges thereafter.

10.15 	Sec. 19. Minnesota Statutes 2008, section 62S.24, subdivision 8, is amended to read:
10.16 		Subd. 8.Exchange for long-term care partnership policy; addition of policy 
10.17 	rider. (a) If authorized by federal law  or a federal waiver is granted With respect to the 
10.18 	long-term care partnership program referenced in section 256B.0571, issuers of long-term 
10.19 	care policies may voluntarily exchange a current long-term care insurance policy for a 
10.20 	long-term care partnership policy that meets the requirements of Public Law 109-171, 
10.21 	section 6021, after the effective date of the state plan amendment implementing the 
10.22 	partnership program in this state. The exchange may be in the form of: (1) an amendment 
10.23 	or rider; or (2) a disclosure statement indicating that the coverage is now partnership 
10.24 	qualified.
10.25 	(b) If authorized by federal law  or a federal waiver is granted With respect to the 
10.26 	long-term care partnership program referenced in section 256B.0571, allowingto allow an 
10.27 	existing long-term care insurance policy to qualify as a partnership policy by addition of a 
10.28 	policy rider or amendment or disclosure statement, the issuer of the policy is authorized to 
10.29 	add the rider or amendment or disclosure statement to the policy after the effective date of 
10.30 	the state plan amendment implementing the partnership program in this state.
10.31 	(c) The commissioner, in cooperation with the commissioner of human services, 
10.32 	shall pursue any federal law changes or waivers necessary to allow the implementation 
10.33 	of paragraphs (a) and (b).

10.34 	Sec. 20. Minnesota Statutes 2008, section 62S.266, subdivision 4, is amended to read:
11.1 		Subd. 4.Contingent benefit upon lapse. (a) After rejection of the offer required 
11.2 	under subdivision 2, for individual and group policies without nonforfeiture benefits 
11.3 	issued after July 1, 2001, the insurer shall provide a contingent benefit upon lapse.
11.4 	(b) If a group policyholder elects to make the nonforfeiture benefit an option to 
11.5 	the certificate holder, a certificate shall provide either the nonforfeiture benefit or the 
11.6 	contingent benefit upon lapse.
11.7 	(c) The contingent benefit on lapse must be triggered every time an insurer increases 
11.8 	the premium rates to a level which results in a cumulative increase of the annual premium 
11.9 	equal to or exceeding the percentage of the insured's initial annual premium based on 
11.10 	the insured's issue age provided in this paragraph, and the policy or certificate lapses 
11.11 	within 120 days of the due date of the premium increase. Unless otherwise required, 
11.12 	policyholders shall be notified at least 30 days prior to the due date of the premium 
11.13 	reflecting the rate increase.

11.14	Triggers for a Substantial Premium Increase
	
11.15
11.16		Issue Age
		Percent Increase Over
Initial Premium
	
11.17		29 and Under
		200
		
11.18		30-34
		190
		
11.19		35-39
		170
		
11.20		40-44
		150
		
11.21		45-49
		130
		
11.22		50-54
		110
		
11.23		55-59
		90
		
11.24		60
		70
		
11.25		61
		66
		
11.26		62
		62
		
11.27		63
		58
		
11.28		64
		54
		
11.29		65
		50
		
11.30		66
		48
		
11.31		67
		46
		
11.32		68
		44
		
11.33		69
		42
		
11.34		70
		40
		
11.35		71
		38
		
11.36		72
		36
		
11.37		73
		34
		
11.38		74
		32
		
11.39		75
		30
		
11.40		76
		28
		
11.41		77
		26
		
12.1		78
		24
		
12.2		79
		22
		
12.3		80
		20
		
12.4		81
		19
		
12.5		82
		18
		
12.6		83
		17
		
12.7		84
		16
		
12.8		85
		15
		
12.9		86
		14
		
12.10		87
		13
		
12.11		88
		12
		
12.12		89
		11
		
12.13		90 and over
		10
		
12.14 	(d) A contingent benefit on lapse must also be triggered for policies with a fixed 
12.15 	or limited premium paying period every time an insurer increases the premium rates to a 
12.16 	level that results in a cumulative increase of the annual premium equal to or exceeding the 
12.17 	percentage of the insured's initial annual premium set forth below based on the insured's 
12.18 	issue age, the policy or certificate lapses within 120 days of the due date of the premium 
12.19 	so increased, and the ratio in paragraph (e) (f), clause (2), is 40 percent or more. Unless 
12.20 	otherwise required, policyholders shall be notified at least 30 days prior to the due date of 
12.21 	the premium reflecting the rate increase.

12.22	Triggers for a Substantial Premium Increase
	
12.23	Issue Age
	Percent Increase Over Initial Premium
	
12.24	Under 65
	50%
	
12.25	65-80
	30%
	
12.26	Over 80
	10%
	
12.27 	This provision shall be in addition to the contingent benefit provided by paragraph 
12.28 	(c) and where both are triggered, the benefit provided must be at the option of the insured.
12.29 	(e) On or before the effective date of a substantial premium increase as defined in 
12.30 	paragraph (c), the insurer shall:
12.31 	(1) offer to reduce policy benefits provided by the current coverage without the 
12.32 	requirement of additional underwriting so that required premium payments are not 
12.33 	increased;
12.34 	(2) offer to convert the coverage to a paid-up status with a shortened benefit period 
12.35 	according to the terms of subdivision 5. This option may be elected at any time during the 
12.36 	120-day period referenced in paragraph (c); and
13.1 	(3) notify the policyholder or certificate holder that a default or lapse at any time 
13.2 	during the 120-day period referenced in paragraph (c) is deemed to be the election of 
13.3 	the offer to convert in clause (2).
13.4 	(f) On or before the effective date of a substantial premium increase as defined in 
13.5 	paragraph (d), the insurer shall:
13.6 	(1) offer to reduce policy benefits provided by the current coverage without the 
13.7 	requirement of additional underwriting so that required premium payments are not 
13.8 	increased;
13.9 	(2) offer to convert the coverage to a paid-up status where the amount payable for 
13.10 	each benefit is 90 percent of the amount payable in effect immediately prior to lapse times 
13.11 	the ratio of the number of completed months of paid premiums divided by the number of 
13.12 	months in the premium paying period. This option may be elected at any time during the 
13.13 	120-day period referenced in paragraph (d); and
13.14 	(3) notify the policyholder or certificate holder that a default or lapse at any time 
13.15 	during the 120-day period referenced in paragraph (d) shall be deemed to be the election 
13.16 	of the offer to convert in clause (2) if the ratio is 40 percent or more.

13.17 	Sec. 21. Minnesota Statutes 2008, section 62S.29, subdivision 1, is amended to read:
13.18 		Subdivision 1.Requirements. An insurer or other entity marketing long-term care 
13.19 	insurance coverage in this state, directly or through its producers, shall:
13.20 	(1) establish marketing procedures and agent training requirements to assure that 
13.21 	any marketing activities, including any comparison of policies by its agents or other 
13.22 	producers, are fair and accurate;
13.23 	(2) establish marketing procedures to assure excessive insurance is not sold or issued;
13.24 	(3) display prominently by type, stamp, or other appropriate means, on the first page 
13.25 	of the outline of coverage and policy, the following:
13.26 	"Notice to buyer: This policy may not cover all of the costs associated with 
13.27 	long-term care incurred by the buyer during the period of coverage. The buyer is advised 
13.28 	to review carefully all policy limitations.";
13.29 	(4) provide copies of the disclosure forms required in section 62S.081, subdivision 
13.30 	4, to the applicant;
13.31 	(5) inquire and otherwise make every reasonable effort to identify whether a 
13.32 	prospective applicant or enrollee for long-term care insurance already has long-term care 
13.33 	insurance and the types and amounts of the insurance;
13.34 	(6) establish auditable procedures for verifying compliance with this subdivision; 
14.1 	(7) if applicable, provide written notice to the prospective policyholder and 
14.2 	certificate holder, at solicitation, that a senior insurance counseling program approved by 
14.3 	the commissioner, the Senior LinkAge Line, is available and the name, address, and 
14.4 	telephone number of the program;
14.5 	(8) use the terms "noncancelable" or "level premium" only when the policy or 
14.6 	certificate conforms to section 62S.14; and
14.7 	(9) provide an explanation of contingent benefit upon lapse provided for in section 
14.8 	62S.266.

14.9 	Sec. 22. Minnesota Statutes 2009 Supplement, section 65A.29, subdivision 13, is 
14.10 	amended to read:
14.11 		Subd. 13.Notice of possible cancellation. (a) A written notice must be provided 
14.12 	to all applicants for homeowners' insurance, at the time the application is submitted, 
14.13 	containing the following language in bold print: "THE INSURER MAY ELECT 
14.14 	TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 6059 DAYS 
14.15 	FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS 
14.16 	NOT SPECIFICALLY PROHIBITED BY STATUTE."
14.17 	(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent 
14.18 	may advise the applicant orally or in writing of its availability for review on the insurer's 
14.19 	Web site in lieu of providing a written notice, if the insurer advises the applicant of the 
14.20 	availability of a written notice upon the applicant's request. The insurer shall provide the 
14.21 	notice in writing if requested by the applicant. An oral notice shall be presumed delivered 
14.22 	if the agent or insurer makes a contemporaneous notation in the applicant's record of 
14.23 	the notice having been delivered or if the insurer or agent retains an audio recording of 
14.24 	the notification provided to the applicant.

14.25 	Sec. 23. Minnesota Statutes 2008, section 72A.20, subdivision 36, is amended to read:
14.26 		Subd. 36.Limitations on the use of credit information. (a) No insurer or group of 
14.27 	affiliated insurers may reject, cancel, or nonrenew a policy of private passenger motor 
14.28 	vehicle insurance as defined under section 65B.01 or a policy of homeowner's insurance 
14.29 	as defined under section 65A.27, for any person in whole or in part on the basis of credit 
14.30 	information, including a credit reporting product known as a "credit score" or "insurance 
14.31 	score," without consideration and inclusion of any other applicable underwriting factor.
14.32 	(b) If credit information, credit scoring, or insurance scoring is to be used in 
14.33 	underwriting, the insurer must disclose to the consumer that credit information will be 
14.34 	obtained and used as part of the insurance underwriting process.
15.1 	(c) Insurance inquiries and non-consumer-initiated inquiries must not be used as part 
15.2 	of the credit scoring or insurance scoring process.
15.3 	(d) If a credit score, insurance score, or other credit information relating to a 
15.4 	consumer, with respect to the types of insurance referred to in paragraph (a), is adversely 
15.5 	impacted or cannot be generated because of the absence of a credit history, the insurer 
15.6 	must exclude the use of credit as a factor in the decision to reject, cancel, or nonrenew.
15.7 	(e) Insurers must upon the request of a policyholder reevaluate the policyholder's 
15.8 	score. Any change in premium resulting from the reevaluation must be effective upon 
15.9 	the renewal of the policy. An insurer is not required to reevaluate a policyholder's score 
15.10 	pursuant to this paragraph more than twice in any given calendar year.
15.11 	(f) Insurers must upon request of the applicant or policyholder provide reasonable 
15.12 	underwriting exceptions based upon prior credit histories for persons whose credit 
15.13 	information is unduly influenced by expenses related to a catastrophic injury or illness, 
15.14 	temporary loss of employment, or the death of an immediate family member. The insurer 
15.15 	may require reasonable documentation of these events prior to granting an exception.
15.16 	(g) A credit scoring or insurance scoring methodology must not be used by an 
15.17 	insurer if the credit scoring or insurance scoring methodology incorporates the gender, 
15.18 	race, nationality, or religion of an insured or applicant.
15.19 	(h) Insurers that employ a credit scoring or insurance scoring system in underwriting 
15.20 	of coverage described in paragraph (a) must have on file with the commissioner:
15.21 	(1) the insurer's credit scoring or insurance scoring methodology; and
15.22 	(2) information that supports the insurer's use of a credit score or insurance score as 
15.23 	an underwriting criterion.
15.24 	(i) Insurers described in paragraph (g)(h) shall file the required information with the 
15.25 	commissioner within 120 days of August 1, 2002, or prior to implementation of a credit 
15.26 	scoring or insurance scoring system by the insurer, if that date is later.
15.27 	(j) Information provided by, or on behalf of, an insurer to the commissioner under 
15.28 	this subdivision is trade secret information under section 13.37.

15.29 	Sec. 24. Minnesota Statutes 2008, section 72A.20, subdivision 37, is amended to read:
15.30 		Subd. 37.Electronic transmission of required information. (a) A health carrier, 
15.31 	as defined in section 62A.011, subdivision 2, is not in violation of this chapter for 
15.32 	electronically transmitting or electronically making available information otherwise 
15.33 	required to be delivered in writing under chapters 62A to 62Q and 72A to an enrollee as 
15.34 	defined in section 62Q.01, subdivision 2a, or to a health plan as defined in paragraph (b), 
15.35 	and with the requirements of those chapters if the following conditions are met: 
16.1 	(1) the health carrier informs the group policyholder or the enrollee or both that 
16.2 	electronic transmission or access is available and, at the discretion of the health carrier, the 
16.3 	enrollee is given one of the following options:
16.4 	(i) electronic transmission or access will occur only if the group policyholder or the 
16.5 	enrollee or both affirmatively requests to the health carrier that the required information 
16.6 	be electronically transmitted or available and a record of that request is retained by the 
16.7 	health carrier; or
16.8 	(ii) electronic transmission or access will automatically occur if the group 
16.9 	policyholder or the enrollee or both has not opted out of that manner of transmission by 
16.10 	request to the health carrier and requested that the information be provided in writing. If 
16.11 	the group policyholder or the enrollee or both opts out of electronic transmission, a record 
16.12 	of that request must be retained by the health carrier;
16.13 	(2) the group policyholder or the enrollee or both is allowed to withdraw the request 
16.14 	at any time;
16.15 	(3) if the information transmitted electronically contains individually identifiable 
16.16 	data, it must be transmitted to a secured mailbox. If the information made available 
16.17 	electronically contains individually identifiable data, it must be made available at a 
16.18 	password-protected secured Web site;
16.19 	(4) the group policyholder or the enrollee or both is provided a customer service 
16.20 	number on the enrollee's member card that may be called to request a written copy of 
16.21 	the document; and
16.22 	(5) the electronic transmission or electronic availability meets all other requirements 
16.23 	of this chapter including, but not limited to, size of the typeface and any required time 
16.24 	frames for distribution.
16.25 	(b) For the purpose of this section, "health plan" means a health plan as defined 
16.26 	in section 62A.011 or a policy of accident and sickness insurance as defined in section 
16.27 	62A.01.

16.28 	Sec. 25. Minnesota Statutes 2008, section 72A.492, subdivision 2, is amended to read:
16.29 		Subd. 2.Covered persons. The rights granted by sections 72A.49 to 72A.505
16.30 	extend to:
16.31 	(1) a person who is a resident of this state and is the subject of information collected, 
16.32 	received, or maintained in connection with an insurance transaction; and
16.33 	(2) a person who is a resident of this state and engages in or seeks to engage in 
16.34 	an insurance transaction.

17.1 	Sec. 26. Minnesota Statutes 2008, section 72B.01, is amended to read:
17.2 	72B.01 PURPOSE AND SCOPE.
17.3 	It is the purpose of sections 72B.01 to 72B.14 to provide high quality service to 
17.4 	insureds and insurance claimants in the state of Minnesota by providing for well trained 
17.5 	adjusters and persons engaged in soliciting business for adjusters, who are qualified to deal 
17.6 	with the public in the interest of a fair resolution of insurance claims. Sections 72B.01 to 
17.7 	72B.14 shall apply to all adjusters, and adjusters' solicitors, except as specifically stated to 
17.8 	the contrary; but nothing in sections 72B.01 to 72B.14 shall apply to:
17.9 	(a) An attorney at law who is licensed or otherwise allowed to practice law in this 
17.10 	state and who does not hold out to be an adjuster, or adjuster's solicitor.
17.11 	(b) A licensed agent of an authorized insurer who adjusts losses for such insurer 
17.12 	solely under policies issued by the agent or the agent's agency or on which the agent is the 
17.13 	agent of record, provided the agent receives no extra compensation for such services.
17.14 	(c) Personnel of township mutual companies.
17.15 	(d) Adjusters for crop hail and farm windstorm damage claims who are on the staff 
17.16 	of companies covering such risks.
17.17 	(e) Persons who process life insurance annuity contract or accident and health 
17.18 	insurance claims.
17.19 	(f) Persons processing or adjusting wet marine or inland transportation claims or 
17.20 	losses.

17.21 	Sec. 27. Minnesota Statutes 2009 Supplement, section 72B.03, subdivision 2, is 
17.22 	amended to read:
17.23 		Subd. 2.Classes of licenses. (a) Unless denied licensure pursuant to section 72B.08, 
17.24 	persons who have met the requirements of section 72B.04 72B.041 must be issued an 
17.25 	adjuster license. There shall be four classes of licenses, as follows:
17.26 	(1) independent adjuster's license;
17.27 	(2) public adjuster's license;
17.28 	(3) public adjuster solicitor's license; and
17.29 	(4) crop hail adjuster's license.
17.30 	(b) An independent adjuster and a public adjuster may qualify for a license in one or 
17.31 	more of the following lines of authority:
17.32 	(1) property and casualty; or
17.33 	(2) workers' compensation; or
17.34 	(3) crop.
18.1 	(c) Any person holding a license pursuant to this section is not required to hold any 
18.2 	other independent adjuster, public adjuster, insurance, or self-insurance administrator 
18.3 	license in this state pursuant to section 60A.23, subdivision 8, or any other provision, 
18.4 	provided that the person does not act as an adjuster with respect to life, health, or annuity 
18.5 	insurance, other than disability insurance.
18.6 	(d) An adjuster license remains in effect unless probated, suspended, revoked, or 
18.7 	refused as long as the fee set forth in section 72B.04, subdivision 10 72B.041, subdivision 
18.8 	9, is paid and all other requirements for license renewal are met by the due date, otherwise, 
18.9 	the license expires.
18.10 	(e) An adjuster whose license expires may, within 12 months of the renewal date, 
18.11 	be reissued an adjuster license upon receipt of the renewal request, as prescribed by the 
18.12 	commissioner; however, a penalty in the amount of double the unpaid renewal fee is 
18.13 	required to reissue the expired license.
18.14 	(f) An adjuster who is unable to comply with license renewal procedures and 
18.15 	requirements due to military service, long-term medical disability, or some other 
18.16 	extenuating circumstance may request a waiver of same and a waiver of any examination 
18.17 	requirement, fine, or other sanction imposed for failure to comply with renewal procedures.
18.18 	(g) An adjuster is subject to sections 72A.17 to 72A.32.
18.19 	(h) The adjuster must inform the commissioner by any means acceptable of any 
18.20 	change in resident or business addresses for the home state or in legal name within 30 
18.21 	days of the change.
18.22 	(i) The license must contain the licensee's name, address, and personal identification 
18.23 	number; the dates of issuance and expiration; and any other information the commissioner 
18.24 	deems necessary.
18.25 	(j) In order to assist in the performance of the commissioner's duties, the 
18.26 	commissioner may contract with nongovernmental entities, including the National 
18.27 	Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any 
18.28 	ministerial functions related to licensing that the commissioner may deem appropriate, 
18.29 	including the collection of fees and data.

18.30 	Sec. 28. Minnesota Statutes 2009 Supplement, section 72B.045, subdivision 1, is 
18.31 	amended to read:
18.32 		Subdivision 1.Requirement. An individual who holds an independent or public
18.33 	adjuster license and who is not exempt under this section must satisfactorily complete 
18.34 	a minimum of 24 hours of continuing education courses, of which three hours must 
19.1 	be in ethics, reported to the commissioner on a biennial basis in conjunction with the 
19.2 	individual's license renewal cycle.

19.3 	Sec. 29. Minnesota Statutes 2008, section 72B.08, subdivision 8, is amended to read:
19.4 		Subd. 8.Bond. In the case of any licensee or permit holder who has had a license or 
19.5 	permit suspended or revoked or whose license renewal has been prohibited by a lawful 
19.6 	order of the commissioner, the commissioner may condition the issuance of a new license 
19.7 	on the filing of a surety bond in an amount not to exceed $10,000, made and conditioned in 
19.8 	accordance with the requirements of section 72B.04, subdivision 4 72B.041, subdivision 
19.9 	3, relating to public adjusters' bonds. Nothing in this subdivision shall reduce or alter the 
19.10 	bonding requirements for a public adjuster.

19.11 	Sec. 30. Minnesota Statutes 2008, section 79A.06, subdivision 5, is amended to read:
19.12 		Subd. 5.Private employers who have ceased to be self-insured. (a) Private 
19.13 	employers who have ceased to be private self-insurers shall discharge their continuing 
19.14 	obligations to secure the payment of compensation which is accrued during the period of 
19.15 	self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to 21, by compliance 
19.16 	with all of the following obligations of current certificate holders:
19.17 	(1) Filing reports with the commissioner to carry out the requirements of this chapter;
19.18 	(2) Depositing and maintaining a security deposit for accrued liability for the 
19.19 	payment of any compensation which may become due, pursuant to chapter 176. However, 
19.20 	if a private employer who has ceased to be a private self-insurer purchases an insurance 
19.21 	policy from an insurer authorized to transact workers' compensation insurance in this state 
19.22 	which provides coverage of all claims for compensation arising out of injuries occurring 
19.23 	during the entire period the employer was self-insured, whether or not reported during 
19.24 	that period, the policy will:
19.25 	(i) discharge the obligation of the employer to maintain a security deposit for the 
19.26 	payment of the claims covered under the policy;
19.27 	(ii) discharge any obligation which the self-insurers' security fund has or may have 
19.28 	for payment of all claims for compensation arising out of injuries occurring during the 
19.29 	period the employer was self-insured, whether or not reported during that period; and
19.30 	(iii) discharge the obligations of the employer to pay any future assessments to 
19.31 	the self-insurers' security fund; provided, however, that a member that terminates its 
19.32 	self-insurance authority on or after August 1, 2010, shall be liable for an assessment under 
19.33 	paragraph (b). The actuarial opinion shall not take into consideration any transfer of the 
20.1 	member's liabilities to an insurance policy if the member obtains a replacement policy as 
20.2 	described in this subdivision within one year of the date of terminating its self-insurance.
20.3 	A private employer who has ceased to be a private self-insurer may instead buy an 
20.4 	insurance policy described above, except that it covers only a portion of the period of time 
20.5 	during which the private employer was self-insured; purchase of such a policy discharges 
20.6 	any obligation that the self-insurers' security fund has or may have for payment of all 
20.7 	claims for compensation arising out of injuries occurring during the period for which the 
20.8 	policy provides coverage, whether or not reported during that period.
20.9 	A policy described in this clause may not be issued by an insurer unless it has 
20.10 	previously been approved as to form and substance by the commissioner; and
20.11 	(3) Paying within 30 days all assessments of which notice is sent by the security 
20.12 	fund, for a period of seven years from the last day its certificate of self-insurance was in 
20.13 	effect. Thereafter, the private employer who has ceased to be a private self-insurer may 
20.14 	either: (i) continue to pay within 30 days all assessments of which notice is sent by the 
20.15 	security fund until it has no incurred liabilities for the payment of compensation arising 
20.16 	out of injuries during the period of self-insurance; or (ii) pay the security fund a cash 
20.17 	payment equal to four percent of the net present value of all remaining incurred liabilities 
20.18 	for the payment of compensation under sections 176.101 and 176.111 as certified by a 
20.19 	member of the casualty actuarial society. Assessments shall be based on the benefits paid 
20.20 	by the employer during the calendar year immediately preceding the calendar year in 
20.21 	which the employer's right to self-insure is terminated or withdrawn.
20.22 	(b) With respect to a self-insurer who terminates its self-insurance authority after 
20.23 	April 1, 1998, that member shall obtain and file with the commissioner an actuarial 
20.24 	opinion of its outstanding liabilities as determined by an associate or fellow of the 
20.25 	Casualty Actuarial Society within 120 days of the date of its termination. If the actuarial 
20.26 	opinion is not timely filed, the self-insurers' security fund may, at its discretion, engage 
20.27 	the services of an actuary for this purpose. The expense of this actuarial opinion must 
20.28 	be assessed against and be the obligation of the self-insurer. The commissioner may 
20.29 	issue a certificate of default against the self-insurer for failure to pay this assessment 
20.30 	to the self-insurers' security fund as provided by section 79A.04, subdivision 9. The 
20.31 	opinion must separate liability for indemnity benefits from liability from medical benefits, 
20.32 	and must may discount each liabilities up to four percent per annum to net present 
20.33 	value. Within 30 60 days after notification of approval of the actuarial opinion by the 
20.34 	commissioner, the exiting member shall pay to the security fund an amount equal to 120 
20.35 	percent of that discounted outstanding indemnity liability, multiplied by the greater of the 
20.36 	average annualized assessment rate since inception of the security fund or the annual 
21.1 	rate at the time of the most recent assessment before termination determined as follows:
21.2 	a percentage will be determined by dividing the security fund's members' deficit as 
21.3 	determined by the most recent audited financial statement of the security fund by the total 
21.4 	actuarial liability of all members of the security fund as calculated by the commissioner 
21.5 	within 30 days of the exit date of the member. This quotient will then be multiplied by 
21.6 	that exiting member's total future liability as contained in the exiting member's actuarial 
21.7 	opinion. If the payment is not made within 30 days of the notification, interest on it at the 
21.8 	rate prescribed by section 549.09 must be paid by the former member to the security fund 
21.9 	until the principal amount is paid in full.
21.10 	(c) A former member who terminated its self-insurance authority before April 1, 
21.11 	1998, who has paid assessments to the self-insurers' security fund for seven years, and 
21.12 	whose annualized assessment is $15,000 or less, may buy out of its outstanding liabilities 
21.13 	to the self-insurers' security fund by an amount calculated as follows: 1.35 multiplied by 
21.14 	the indemnity case reserves at the time of the calculation, multiplied by the then current 
21.15 	self-insurers' security fund annualized assessment rate.
21.16 	(d) A former member who terminated its self-insurance authority before April 1, 
21.17 	1998, and who is paying assessments within the first seven years after ceasing to be 
21.18 	self-insured under paragraph (a), clause (3), may elect to buy out its outstanding liabilities 
21.19 	to the self-insurers' security fund by obtaining and filing with the commissioner an 
21.20 	actuarial opinion of its outstanding liabilities as determined by an associate or fellow of 
21.21 	the Casualty Actuarial Society. The opinion must separate liability for indemnity benefits 
21.22 	from liability for medical benefits, and must discount each up to four percent per annum to 
21.23 	net present value. Within 30 days after notification of approval of the actuarial opinion 
21.24 	by the commissioner, the member shall pay to the security fund an amount equal to 120 
21.25 	percent of that discounted outstanding indemnity liability, multiplied by the greater of the 
21.26 	average annualized assessment rate since inception of the security fund or the annual rate 
21.27 	at the time of the most recent assessment.
21.28 	(e) A former member who has paid the security fund according to paragraphs (b) to 
21.29 	(d) and subsequently receives authority from the commissioner to again self-insure shall be 
21.30 	assessed under section 79A.12, subdivision 2, only on indemnity benefits paid on injuries 
21.31 	that occurred after the former member received authority to self-insure again; provided 
21.32 	that the member furnishes verified data regarding those benefits to the security fund.
21.33 	(f) In addition to proceedings to establish liabilities and penalties otherwise 
21.34 	provided, a failure to comply may be the subject of a proceeding before the commissioner. 
21.35 	An appeal from the commissioner's determination may be taken pursuant to the contested 
21.36 	case procedures of chapter 14 within 30 days of the commissioner's written determination.
22.1 	Any current or past member of the self-insurers' security fund is subject to service of 
22.2 	process on any claim arising out of chapter 176 or this chapter in the manner provided by 
22.3 	section 5.25, or as otherwise provided by law. The issuance of a certificate to self-insure 
22.4 	to the private self-insured employer shall be deemed to be the agreement that any process 
22.5 	which is served in accordance with this section shall be of the same legal force and effect 
22.6 	as if served personally within this state.

22.7 	EFFECTIVE DATE. This section is effective August 1, 2010, and applies to 
22.8 	terminations of self-insurance authority that become effective on or after that date.

22.9 	Sec. 31. Minnesota Statutes 2008, section 80A.41, is amended to read:
22.10 	80A.41 SECTION 102; DEFINITIONS. 
22.11 	In this chapter, unless the context otherwise requires: 
22.12 	(1) "Accredited investor" means an accredited investor as the term is defined in Rule 
22.13 	501(a) of Regulation D adopted pursuant to the Securities Act of 1933. 
22.14 	(2) "Administrator" means the commissioner of commerce. 
22.15 	(3) "Agent" means an individual, other than a broker-dealer, who represents a 
22.16 	broker-dealer in effecting or attempting to effect purchases or sales of securities or 
22.17 	represents an issuer in effecting or attempting to effect purchases or sales of the issuer's 
22.18 	securities.  But a partner, officer, or director of a broker-dealer or issuer, or an individual 
22.19 	having a similar status or performing similar functions is an agent only if the individual 
22.20 	otherwise comes within the term.  The term does not include an individual excluded by 
22.21 	rule adopted or order issued under this chapter. 
22.22 	(4) "Bank" means: 
22.23 	(A) a banking institution organized under the laws of the United States; 
22.24 	(B) a member bank of the Federal Reserve System; 
22.25 	(C) any other banking institution, whether incorporated or not, doing business 
22.26 	under the laws of a state or of the United States, a substantial portion of the business 
22.27 	of which consists of receiving deposits or exercising fiduciary powers similar to those 
22.28 	permitted to be exercised by national banks under the authority of the Comptroller of the 
22.29 	Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a), and which 
22.30 	is supervised and examined by a state or federal agency having supervision over banks, 
22.31 	and which is not operated for the purpose of evading this chapter; and 
22.32 	(D) a receiver, conservator, or other liquidating agent of any institution or firm 
22.33 	included in subparagraph (A), (B), or (C). 
23.1 	(5) "Broker-dealer" means a person engaged in the business of effecting transactions 
23.2 	in securities for the account of others or for the person's own account.  The term does 
23.3 	not include: 
23.4 	(A) an agent; 
23.5 	(B) an issuer; 
23.6 	(C) a depository institution; provided such activities are conducted in accordance 
23.7 	with such rules as may be adopted by the administrator; 
23.8 	(D) an international banking institution; or 
23.9 	(E) a person excluded by rule adopted or order issued under this chapter. 
23.10 	(6) "Depository institution" means: 
23.11 	(A) a bank; or 
23.12 	(B) a savings institution, trust company, credit union, or similar institution that 
23.13 	is organized or chartered under the laws of a state or of the United States, authorized 
23.14 	to receive deposits, and supervised and examined by an official or agency of a state or 
23.15 	the United States if its deposits or share accounts are insured to the maximum amount 
23.16 	authorized by statute by the Federal Deposit Insurance Corporation, the National Credit 
23.17 	Union Share Insurance Fund, or a successor authorized by federal law.  The term does 
23.18 	not include: 
23.19 	(i) an insurance company or other organization primarily engaged in the business 
23.20 	of insurance; 
23.21 	(ii) a Morris Plan bank; or 
23.22 	(iii) an industrial loan company that is not an "insured depository institution" as 
23.23 	defined in section 3(c)(2) of the Federal Deposit Insurance Act, United States Code, title 
23.24 	12, section 1813(c)(2), or any successor federal statute. 
23.25 	(7) "Federal covered investment adviser" means a person registered under the 
23.26 	Investment Advisers Act of 1940. 
23.27 	(8) "Federal covered security" means a security that is, or upon completion of a 
23.28 	transaction will be, a covered security under Section 18(b) of the Securities Act of 1933 
23.29 	(15 U.S.C. Section 77r(b)) or rules or regulations adopted pursuant to that provision. 
23.30 	(9) "Filing" means the receipt under this chapter of a record by the administrator or 
23.31 	a designee of the administrator. 
23.32 	(10) "Fraud," "deceit," and "defraud" are not limited to common law deceit. 
23.33 	(11) "Guaranteed" means guaranteed as to payment of all principal and all interest. 
23.34 	(12) "Institutional investor" means any of the following, whether acting for itself or 
23.35 	for others in a fiduciary capacity: 
23.36 	(A) a depository institution or international banking institution; 
24.1 	(B) an insurance company; 
24.2 	(C) a separate account of an insurance company; 
24.3 	(D) an investment company as defined in the Investment Company Act of 1940; 
24.4 	(E) a broker-dealer registered under the Securities Exchange Act of 1934; 
24.5 	(F) an employee pension, profit-sharing, or benefit plan if the plan has total assets 
24.6 	in excess of $10,000,000 or its investment decisions are made by a named fiduciary, as 
24.7 	defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer 
24.8 	registered under the Securities Exchange Act of 1934, an investment adviser registered 
24.9 	or exempt from registration under the Investment Advisers Act of 1940, an investment 
24.10 	adviser registered under this chapter, a depository institution, or an insurance company; 
24.11 	(G) a plan established and maintained by a state, a political subdivision of a state, or 
24.12 	an agency or instrumentality of a state or a political subdivision of a state for the benefit 
24.13 	of its employees, if the plan has total assets in excess of $10,000,000 or its investment 
24.14 	decisions are made by a duly designated public official or by a named fiduciary, as 
24.15 	defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer 
24.16 	registered under the Securities Exchange Act of 1934, an investment adviser registered 
24.17 	or exempt from registration under the Investment Advisers Act of 1940, an investment 
24.18 	adviser registered under this chapter, a depository institution, or an insurance company; 
24.19 	(H) a trust, if it has total assets in excess of $10,000,000, its trustee is a depository 
24.20 	institution, and its participants are exclusively plans of the types identified in subparagraph 
24.21 	(F) or (G), regardless of the size of their assets, except a trust that includes as participants 
24.22 	self-directed individual retirement accounts or similar self-directed plans; 
24.23 	(I) an organization described in Section 501(c)(3) of the Internal Revenue Code (26 
24.24 	U.S.C. Section 501(c)(3)), corporation, Massachusetts trust or similar business trust, 
24.25 	limited liability company, or partnership, not formed for the specific purpose of acquiring 
24.26 	the securities offered, with total assets in excess of $10,000,000; 
24.27 	(J) a small business investment company licensed by the Small Business 
24.28 	Administration under Section 301(c) of the Small Business Investment Act of 1958 (15 
24.29 	U.S.C. Section 681(c)) with total assets in excess of $10,000,000; 
24.30 	(K) a private business development company as defined in Section 202(a)(22) of 
24.31 	the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(22)) with total assets 
24.32 	in excess of $10,000,000; 
24.33 	(L) a federal covered investment adviser acting for its own account; 
24.34 	(M) a "qualified institutional buyer" as defined in Rule 144A(a)(1), other than Rule 
24.35 	144A(a)(1)(i)(H), adopted under the Securities Act of 1933 (17 C.F.R. 230.144A); 
25.1 	(N) a "major U.S. institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted 
25.2 	under the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6); 
25.3 	(O) any other person, other than an individual, of institutional character with total 
25.4 	assets in excess of $10,000,000 not organized for the specific purpose of evading this 
25.5 	chapter; or 
25.6 	(P) any other person specified by rule adopted or order issued under this chapter; 
25.7 	(13) "Insurance company" means a company organized as an insurance company 
25.8 	whose primary business is writing insurance or reinsuring risks underwritten by insurance 
25.9 	companies and which is subject to supervision by the insurance commissioner or a similar 
25.10 	official or agency of a state. 
25.11 	(14) "Insured" means insured as to payment of all principal and all interest. 
25.12 	(15) "International banking institution" means an international financial institution 
25.13 	of which the United States is a member and whose securities are exempt from registration 
25.14 	under the Securities Act of 1933. 
25.15 	(16) "Investment adviser" means a person that, for compensation, engages in the 
25.16 	business of advising others, either directly or through publications or writings, as to the 
25.17 	value of securities or the advisability of investing in, purchasing, or selling securities or 
25.18 	that, for compensation and as a part of a regular business, issues or promulgates analyses 
25.19 	or reports concerning securities.  The term includes a financial planner or other person 
25.20 	that, as an integral component of other financially related services, provides investment 
25.21 	advice to others for compensation as part of a business or that holds itself out as providing 
25.22 	investment advice to others for compensation.  The term does not include: 
25.23 	(A) an investment adviser representative; 
25.24 	(B) a lawyer, accountant, engineer, or teacher whose performance of investment 
25.25 	advice is solely incidental to the practice of the person's profession; 
25.26 	(C) a broker-dealer or its agents whose performance of investment advice is solely 
25.27 	incidental to the conduct of business as a broker-dealer and that does not receive special 
25.28 	compensation for the investment advice; 
25.29 	(D) a publisher of a bona fide newspaper, news magazine, or business or financial 
25.30 	publication of general and regular circulation; 
25.31 	(E) a federal covered investment adviser; 
25.32 	(F) a bank or savings institution; 
25.33 	(G) any other person that is excluded by the Investment Advisers Act of 1940 from 
25.34 	the definition of investment adviser; or 
25.35 	(H) any other person excluded by rule adopted or order issued under this chapter. 
26.1 	(17) "Investment adviser representative" means an individual employed by or 
26.2 	associated with an investment adviser or federal covered investment adviser and who 
26.3 	makes any recommendations or otherwise gives investment advice regarding securities, 
26.4 	manages accounts or portfolios of clients, determines which recommendation or advice 
26.5 	regarding securities should be given, provides investment advice or holds herself or 
26.6 	himself out as providing investment advice, receives compensation to solicit, offer, or 
26.7 	negotiate for the sale of or for selling investment advice, or supervises employees who 
26.8 	perform any of the foregoing.  The term does not include an individual who: 
26.9 	(A) performs only clerical or ministerial acts; 
26.10 	(B) is an agent whose performance of investment advice is solely incidental to 
26.11 	the individual acting as an agent and who does not receive special compensation for 
26.12 	investment advisory services; 
26.13 	(C) is employed by or associated with a federal covered investment adviser, unless 
26.14 	the individual has a "place of business" in this state as that term is defined by rule adopted 
26.15 	under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a) 
26.16 	and is 
26.17 	(i) an "investment adviser representative" as that term is defined by rule adopted 
26.18 	under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or 
26.19 	(ii) not a "supervised person" as that term is defined in Section 202(a)(25) of the 
26.20 	Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or 
26.21 	(D) is excluded by rule adopted or order issued under this chapter. 
26.22 	(18) "Issuer" means a person that issues or proposes to issue a security, subject to 
26.23 	the following: 
26.24 	(A) The issuer of a voting trust certificate, collateral trust certificate, certificate of 
26.25 	deposit for a security, or share in an investment company without a board of directors or 
26.26 	individuals performing similar functions is the person performing the acts and assuming 
26.27 	the duties of depositor or manager pursuant to the trust or other agreement or instrument 
26.28 	under which the security is issued. 
26.29 	(B) The issuer of an equipment trust certificate or similar security serving the same 
26.30 	purpose is the person by which the property is or will be used or to which the property 
26.31 	or equipment is or will be leased or conditionally sold or that is otherwise contractually 
26.32 	responsible for assuring payment of the certificate. 
26.33 	(C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease 
26.34 	or in payments out of production under a lease, right, or royalty is the owner of an interest 
26.35 	in the lease or in payments out of production under a lease, right, or royalty, whether 
26.36 	whole or fractional, that creates fractional interests for the purpose of sale. 
27.1 	(19) "Nonissuer transaction" or "nonissuer distribution" means a transaction or 
27.2 	distribution not directly or indirectly for the benefit of the issuer. 
27.3 	(20) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an 
27.4 	offer to sell, a security or interest in a security for value.  The term does not include a 
27.5 	tender offer that is subject to Section 14(d) of the Securities Exchange Act of 1934 (15 
27.6 	U.S.C. Section 78n(d)). 
27.7 	(21) "Person" means an individual; corporation; business trust; estate; trust; 
27.8 	partnership; limited liability company; association; joint venture; government; 
27.9 	governmental subdivision, agency, or instrumentality; public corporation; or any other 
27.10 	legal or commercial entity. 
27.11 	(22) "Place of business" of a broker-dealer, an investment adviser, or a federal 
27.12 	covered investment adviser means: 
27.13 	(A) an office at which the broker-dealer, investment adviser, or federal covered 
27.14 	investment adviser regularly provides brokerage or investment advice or solicits, meets 
27.15 	with, or otherwise communicates with customers or clients; or 
27.16 	(B) any other location that is held out to the general public as a location at which 
27.17 	the broker-dealer, investment adviser, or federal covered investment adviser provides 
27.18 	brokerage or investment advice or solicits, meets with, or otherwise communicates with 
27.19 	customers or clients. 
27.20 	(23) "Predecessor Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31. 
27.21 	(24) "Price amendment" means the amendment to a registration statement filed under 
27.22 	the Securities Act of 1933 or, if an amendment is not filed, the prospectus or prospectus 
27.23 	supplement filed under the Securities Act of 1933 that includes a statement of the offering 
27.24 	price, underwriting and selling discounts or commissions, amount of proceeds, conversion 
27.25 	rates, call prices, and other matters dependent upon the offering price. 
27.26 	(25) "Principal place of business" of a broker-dealer or an investment adviser means 
27.27 	the executive office of the broker-dealer or investment adviser from which the officers, 
27.28 	partners, or managers of the broker-dealer or investment adviser direct, control, and 
27.29 	coordinate the activities of the broker-dealer or investment adviser. 
27.30 	(26) Only for purposes of calculating the number of purchasers under section 
27.31 	80A.46(1) and 80A.46(14), "purchaser" does not include: 
27.32 	(A) any relative, spouse, or relative of the spouse of a purchaser who has the same 
27.33 	principal residence as the purchaser; 
27.34 	(B) any trust or estate in which a purchaser and any of the persons related to him as 
27.35 	specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50 
27.36 	percent of the beneficial interest (excluding contingent interests); 
28.1 	(C) any corporation or other organization of which a purchaser and any of the 
28.2 	persons related to the purchaser as specified in Regulation D, Rule 501(e)(1)(i) or 
28.3 	(e)(1)(ii) collectively are beneficial owners of more than 50 percent of the equity securities 
28.4 	(excluding directors' qualifying shares) or equity interests; and 
28.5 	(D) any accredited investor. 
28.6 	A corporation, partnership, or other entity must be counted as one purchaser.  If, 
28.7 	however, that entity is organized for the specific purpose of acquiring the securities offered 
28.8 	and is not an accredited investor, then each beneficial owner of equity securities or equity 
28.9 	interests in the entity shall count as a separate purchaser for all provisions of Regulation 
28.10 	D, except to the extent provided in Regulation D, Rule 501(e)(1). 
28.11 	A noncontributory employee benefit plan within the meaning of Title I of the 
28.12 	Employee Retirement Income Security Act of 1974 shall be counted as one purchaser 
28.13 	where the trustee makes all investment decisions for the plan. 
28.14 	(27) "Record," except in the phrases "of record," "official record," and "public 
28.15 	record," means information that is inscribed on a tangible medium or that is stored in an 
28.16 	electronic or other medium and is retrievable in perceivable form. 
28.17 	(28) "Sale" includes every contract of sale, contract to sell, or disposition of, a 
28.18 	security or interest in a security for value, and "offer to sell" includes every attempt or 
28.19 	offer to dispose of, or solicitation of an offer to purchase, a security or interest in a 
28.20 	security for value. 
28.21 	(A) A security given or delivered with, or as a bonus on account of, any purchase of 
28.22 	securities or any other thing is considered to constitute part of the subject of the purchase 
28.23 	and to have been offered and sold for value. 
28.24 	(B) A gift of assessable stock is considered to involve an offer and sale. 
28.25 	(C) A sale or offer of a warrant or right to purchase or subscribe to another security 
28.26 	of the same or another issuer and a sale or offer of a security that gives the holder a present 
28.27 	or future right or privilege to convert the security into another security of the same or 
28.28 	another issuer, are each considered to include an offer of the other security. 
28.29 	(29) "Securities and Exchange Commission" means the United States Securities and 
28.30 	Exchange Commission. 
28.31 	(30) "Security" means a note; stock; treasury stock; security future; bond; debenture; 
28.32 	evidence of indebtedness; certificate of interest or participation in a profit-sharing 
28.33 	agreement; collateral trust certificate; preorganization certificate or subscription; 
28.34 	transferable share; investment contract; voting trust certificate; certificate of deposit for a 
28.35 	security; fractional undivided interest in oil, gas, or other mineral rights; put, call, straddle, 
28.36 	option, or privilege on a security, certificate of deposit, or group or index of securities, 
29.1 	including an interest therein or based on the value thereof; put, call, straddle, option, or 
29.2 	privilege entered into on a national securities exchange relating to foreign currency; or, 
29.3 	in general, an interest or instrument commonly known as a "security"; or a certificate of 
29.4 	interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or 
29.5 	warrant or right to subscribe to or purchase, any of the foregoing.  The term: 
29.6 	(A) includes both a certificated and an uncertificated security; 
29.7 	(B) does not include an insurance or endowment policy or annuity contract under 
29.8 	which an insurance company promises to pay a fixed or variable sum of money either in a 
29.9 	lump sum or periodically for life or other specified period; 
29.10 	(C) does not include an interest in a contributory or noncontributory pension or 
29.11 	welfare plan subject to the Employee Retirement Income Security Act of 1974; 
29.12 	(D)  includes as an "investment contract," among other contracts, an interest in 
29.13 	a limited partnership and a limited liability company and an investment in a viatical 
29.14 	settlement or similar agreement; and 
29.15 	(E) does not include any equity interest of a closely held corporation or other entity 
29.16 	with not more than 35 holders of the equity interest of such entity offered or sold pursuant 
29.17 	to a transaction in which 100 percent of the equity interest of such entity is sold as a means 
29.18 	to effect the sale of the business of the entity if the transaction has been negotiated on 
29.19 	behalf of all purchasers and if all purchasers have access to inside information regarding 
29.20 	the entity before consummating the transaction. 
29.21 	(31) "Self-regulatory organization" means a national securities exchange registered 
29.22 	under the Securities Exchange Act of 1934, a national securities association of 
29.23 	broker-dealers registered under the Securities Exchange Act of 1934, a clearing agency 
29.24 	registered under the Securities Exchange Act of 1934, or the Municipal Securities 
29.25 	Rulemaking Board established under the Securities Exchange Act of 1934. 
29.26 	(32) "Sign" means, with present intent to authenticate or adopt a record: 
29.27 	(A) to execute or adopt a tangible symbol; or 
29.28 	(B) to attach or logically associate with the record an electronic symbol, sound, 
29.29 	or process. 
29.30 	(33) "State" means a state of the United States, the District of Columbia, Puerto 
29.31 	Rico, the United States Virgin Islands, or any territory or insular possession subject to the 
29.32 	jurisdiction of the United States. 
29.33 	(34) "Associated with" with respect to a person means any partner, officer, director, 
29.34 	or manager of such person or any person occupying a similar status or performing 
29.35 	similar functions or any person directly or indirectly controlling, controlled by, or in 
30.1 	common control with, such person, but does not include a person whose primary duties 
30.2 	are ministerial or clerical.  

30.3 	Sec. 32. Minnesota Statutes 2008, section 80A.46, is amended to read:
30.4 	80A.46 SECTION 202; EXEMPT TRANSACTIONS. 
30.5 	The following transactions are exempt from the requirements of sections 80A.49 
30.6 	through 80A.54 and 80A.71: 
30.7 	(1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers 
30.8 	in Minnesota during any period of 12 consecutive months, whether effected by or through 
30.9 	a broker-dealer or not; 
30.10 	(2) a nonissuer transaction by or through a broker-dealer registered, or exempt from 
30.11 	registration under this chapter, and a resale transaction by a sponsor of a unit investment 
30.12 	trust registered under the Investment Company Act of 1940, in a security of a class that 
30.13 	has been outstanding in the hands of the public for at least 90 days, if, at the date of 
30.14 	the transaction: 
30.15 	(A) the issuer of the security is engaged in business, the issuer is not in the 
30.16 	organizational stage or in bankruptcy or receivership, and the issuer is not a blank check, 
30.17 	blind pool, or shell company that has no specific business plan or purpose or has indicated 
30.18 	that its primary business plan is to engage in a merger or combination of the business with, 
30.19 	or an acquisition of, an unidentified person; 
30.20 	(B) the security is sold at a price reasonably related to its current market price; 
30.21 	(C) the security does not constitute the whole or part of an unsold allotment to, or 
30.22 	a subscription or participation by, the broker-dealer as an underwriter of the security 
30.23 	or a redistribution; 
30.24 	(D) a nationally recognized securities manual or its electronic equivalent designated 
30.25 	by rule adopted or order issued under this chapter or a record filed with the Securities and 
30.26 	Exchange Commission that is publicly available contains: 
30.27 	(i) a description of the business and operations of the issuer; 
30.28 	(ii) the names of the issuer's executive officers and the names of the issuer's 
30.29 	directors, if any; 
30.30 	(iii) an audited balance sheet of the issuer as of a date within 18 months before the 
30.31 	date of the transaction or, in the case of a reorganization or merger when the parties to 
30.32 	the reorganization or merger each had an audited balance sheet, a pro forma balance 
30.33 	sheet for the combined organization; and 
30.34 	(iv) an audited income statement for each of the issuer's two immediately previous 
30.35 	fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case 
31.1 	of a reorganization or merger when each party to the reorganization or merger had audited 
31.2 	income statements, a pro forma income statement; and 
31.3 	(E) any one of the following requirements is met: 
31.4 	(i) the issuer of the security has a class of equity securities listed on a national 
31.5 	securities exchange registered under Section 6 of the Securities Exchange Act of 1934 
31.6 	or designated for trading on the National Association of Securities Dealers Automated 
31.7 	Quotation System; 
31.8 	(ii) the issuer of the security is a unit investment trust registered under the Investment 
31.9 	Company Act of 1940; 
31.10 	(iii) the issuer of the security, including its predecessors, has been engaged in 
31.11 	continuous business for at least three years; or 
31.12 	(iv) the issuer of the security has total assets of at least $2,000,000 based on an 
31.13 	audited balance sheet as of a date within 18 months before the date of the transaction or, in 
31.14 	the case of a reorganization or merger when the parties to the reorganization or merger 
31.15 	each had such an audited balance sheet, a pro forma balance sheet for the combined 
31.16 	organization; 
31.17 	(3) a nonissuer transaction by or through a broker-dealer registered or exempt from 
31.18 	registration under this chapter in a security of a foreign issuer that is a margin security 
31.19 	defined in regulations or rules adopted by the Board of Governors of the Federal Reserve 
31.20 	System; 
31.21 	(4) a nonissuer transaction by or through a broker-dealer registered or exempt 
31.22 	from registration under this chapter in an outstanding security if the guarantor of the 
31.23 	security files reports with the Securities and Exchange Commission under the reporting 
31.24 	requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 
31.25 	Sections 78m or 78o(d)); 
31.26 	(5) a nonissuer transaction by or through a broker-dealer registered or exempt from 
31.27 	registration under this chapter in a security that: 
31.28 	(A) is rated at the time of the transaction by a nationally recognized statistical rating 
31.29 	organization in one of its four highest rating categories; or 
31.30 	(B) has a fixed maturity or a fixed interest or dividend, if: 
31.31 	(i) a default has not occurred during the current fiscal year or within the three 
31.32 	previous fiscal years or during the existence of the issuer and any predecessor if less than 
31.33 	three fiscal years, in the payment of principal, interest, or dividends on the security; and 
31.34 	(ii) the issuer is engaged in business, is not in the organizational stage or in 
31.35 	bankruptcy or receivership, and is not and has not been within the previous 12 months a 
31.36 	blank check, blind pool, or shell company that has no specific business plan or purpose or 
32.1 	has indicated that its primary business plan is to engage in a merger or combination of the 
32.2 	business with, or an acquisition of, an unidentified person; 
32.3 	(6) a nonissuer transaction by or through a broker-dealer registered or exempt from 
32.4 	registration under this chapter effecting an unsolicited order or offer to purchase; 
32.5 	(7) a nonissuer transaction executed by a bona fide pledgee without the purpose 
32.6 	of evading this chapter; 
32.7 	(8) a nonissuer transaction by a federal covered investment adviser with investments 
32.8 	under management in excess of $100,000,000 acting in the exercise of discretionary 
32.9 	authority in a signed record for the account of others; 
32.10 	(9) a transaction in a security, whether or not the security or transaction is otherwise 
32.11 	exempt, in exchange for one or more bona fide outstanding securities, claims, or property 
32.12 	interests, or partly in such exchange and partly for cash, if the terms and conditions of 
32.13 	the issuance and exchange or the delivery and exchange and the fairness of the terms and 
32.14 	conditions have been approved by the administrator after a hearing; 
32.15 	(10) a transaction between the issuer or other person on whose behalf the offering is 
32.16 	made and an underwriter, or among underwriters; 
32.17 	(11) a transaction in a note, bond, debenture, or other evidence of indebtedness 
32.18 	secured by a mortgage or other security agreement if: 
32.19 	(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold 
32.20 	with the mortgage or other security agreement as a unit; 
32.21 	(B) a general solicitation or general advertisement of the transaction is not made; and 
32.22 	(C) a commission or other remuneration is not paid or given, directly or indirectly, to 
32.23 	a person not registered under this chapter as a broker-dealer or as an agent; 
32.24 	(12) a transaction by an executor, administrator of an estate, sheriff, marshal, 
32.25 	receiver, trustee in bankruptcy, guardian, or conservator; 
32.26 	(13) a sale or offer to sell to: 
32.27 	(A) an institutional investor; 
32.28 	(B) an accredited investor; 
32.29 	(C) a federal covered investment adviser; or 
32.30 	(D) any other person exempted by rule adopted or order issued under this chapter; 
32.31 	(14) a sale or an offer to sell securities by an issuer, if the transaction is part of 
32.32 	a single issue in which: 
32.33 	(A) not more than 35 purchasers are present in this state during any 12 consecutive 
32.34 	months, other than those designated in paragraph (13); 
32.35 	(B) a general solicitation or general advertising is not made in connection with 
32.36 	the offer to sell or sale of the securities; 
33.1 	(C) a commission or other remuneration is not paid or given, directly or indirectly, to 
33.2 	a person other than a broker-dealer registered under this chapter or an agent registered 
33.3 	under this chapter for soliciting a prospective purchaser in this state; and 
33.4 	(D) the issuer reasonably believes that all the purchasers in this state, other than 
33.5 	those designated in paragraph (13), are purchasing for investment. 
33.6 	Any issuer selling to purchasers in this state in reliance on this clause (14) exemption 
33.7 	must provide to the administrator notice of the transaction by filing a statement of issuer 
33.8 	form as adopted by rule. Notice must be filed at least ten days in advance of any sale or 
33.9 	such shorter period as permitted by the administrator. However, an issuer who makes sales 
33.10 	to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not 
33.11 	required to provide this notice; 
33.12 	(15) a transaction under an offer to existing security holders of the issuer, including 
33.13 	persons that at the date of the transaction are holders of convertible securities, options, 
33.14 	or warrants, if a commission or other remuneration, other than a standby commission, is 
33.15 	not paid or given, directly or indirectly, for soliciting a security holder in this state. The 
33.16 	person making the offer and effecting the transaction must provide to the administrator 
33.17 	notice of the transaction by filing a written description of the transaction. Notice must be 
33.18 	filed at least ten days in advance of any transaction or such shorter period as permitted by 
33.19 	the administrator; 
33.20 	(16) an offer to sell, but not a sale, of a security not exempt from registration under 
33.21 	the Securities Act of 1933 if: 
33.22 	(A) a registration or offering statement or similar record as required under the 
33.23 	Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance 
33.24 	with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and 
33.25 	(B) a stop order of which the offeror is aware has not been issued against the offeror 
33.26 	by the administrator or the Securities and Exchange Commission, and an audit, inspection, 
33.27 	or proceeding that is public and that may culminate in a stop order is not known by the 
33.28 	offeror to be pending; 
33.29 	(17) an offer to sell, but not a sale, of a security exempt from registration under the 
33.30 	Securities Act of 1933 if: 
33.31 	(A) a registration statement has been filed under this chapter, but is not effective; 
33.32 	(B) a solicitation of interest is provided in a record to offerees in compliance with a 
33.33 	rule adopted by the administrator under this chapter; and 
33.34 	(C) a stop order of which the offeror is aware has not been issued by the administrator 
33.35 	under this chapter and an audit, inspection, or proceeding that may culminate in a stop 
33.36 	order is not known by the offeror to be pending; 
34.1 	(18) a transaction involving the distribution of the securities of an issuer to the 
34.2 	security holders of another person in connection with a merger, consolidation, exchange 
34.3 	of securities, sale of assets, or other reorganization to which the issuer, or its parent 
34.4 	or subsidiary and the other person, or its parent or subsidiary, are parties. The person 
34.5 	distributing the issuer's securities must provide to the administrator notice of the 
34.6 	transaction by filing a written description of the transaction along with a consent to service 
34.7 	of process complying with section 80A.88. Notice must be filed at least ten days in 
34.8 	advance of any transaction or such shorter period as permitted by the administrator; 
34.9 	(19) a rescission offer, sale, or purchase under section 80A.77;. The person making 
34.10 	the rescission offer must provide to the administrator notice of the transaction by filing a 
34.11 	written description of the transaction and a copy of the record that must be delivered to the 
34.12 	offeree under section 80A.77. Notice must be filed at least ten days in advance of any 
34.13 	rescission offer under section 80A.77 or a shorter period as permitted by the administrator;
34.14 	(20) an offer or sale of a security to a person not a resident of this state and not 
34.15 	present in this state if the offer or sale does not constitute a violation of the laws of the 
34.16 	state or foreign jurisdiction in which the offeree or purchaser is present and is not part of 
34.17 	an unlawful plan or scheme to evade this chapter; 
34.18 	(21) employees' stock purchase, savings, option, profit-sharing, pension, or 
34.19 	similar employees' benefit plan, including any securities, plan interests, and guarantees 
34.20 	issued under a compensatory benefit plan or compensation contract, contained in a 
34.21 	record, established by the issuer, its parents, its majority-owned subsidiaries, or the 
34.22 	majority-owned subsidiaries of the issuer's parent for the participation of their employees 
34.23 	including offers or sales of such securities to: 
34.24 	(A) directors; general partners; trustees, if the issuer is a business trust; officers; 
34.25 	consultants; and advisors; 
34.26 	(B) family members who acquire such securities from those persons through gifts or 
34.27 	domestic relations orders; 
34.28 	(C) former employees, directors, general partners, trustees, officers, consultants, and 
34.29 	advisors if those individuals were employed by or providing services to the issuer when 
34.30 	the securities were offered; and 
34.31 	(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's 
34.32 	subsidiaries or parents, or who derive more than 50 percent of their annual income from 
34.33 	those organizations. 
34.34 	A person establishing an employee benefit plan under the exemption in this clause 
34.35 	(21) must provide to the administrator notice of the transaction by filing a written 
34.36 	description of the transaction along with a consent to service of process complying with 
35.1 	section 80A.88. Notice must be filed at least ten days in advance of any transaction or 
35.2 	such shorter period as permitted by the administrator; 
35.3 	(22) a transaction involving: 
35.4 	(A) a stock dividend or equivalent equity distribution, whether the corporation or 
35.5 	other business organization distributing the dividend or equivalent equity distribution is 
35.6 	the issuer or not, if nothing of value is given by stockholders or other equity holders for 
35.7 	the dividend or equivalent equity distribution other than the surrender of a right to a cash 
35.8 	or property dividend if each stockholder or other equity holder may elect to take the 
35.9 	dividend or equivalent equity distribution in cash, property, or stock; 
35.10 	(B) an act incident to a judicially approved reorganization in which a security is 
35.11 	issued in exchange for one or more outstanding securities, claims, or property interests, or 
35.12 	partly in such exchange and partly for cash; or 
35.13 	(C) the solicitation of tenders of securities by an offeror in a tender offer in 
35.14 	compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162); 
35.15 	(23) a nonissuer transaction in an outstanding security by or through a broker-dealer 
35.16 	registered or exempt from registration under this chapter, if the issuer is a reporting 
35.17 	issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order 
35.18 	issued under this chapter; has been subject to continuous reporting requirements in the 
35.19 	foreign jurisdiction for not less than 180 days before the transaction; and the security is 
35.20 	listed on the foreign jurisdiction's securities exchange that has been designated by this 
35.21 	paragraph or by rule adopted or order issued under this chapter, or is a security of the same 
35.22 	issuer that is of senior or substantially equal rank to the listed security or is a warrant or 
35.23 	right to purchase or subscribe to any of the foregoing.  For purposes of this paragraph, 
35.24 	Canada, together with its provinces and territories, is a designated foreign jurisdiction 
35.25 	and The Toronto Stock Exchange, Inc., is a designated securities exchange.  After an 
35.26 	administrative hearing in compliance with chapter 14, the administrator, by rule adopted 
35.27 	or order issued under this chapter, may revoke the designation of a securities exchange 
35.28 	under this paragraph, if the administrator finds that revocation is necessary or appropriate 
35.29 	in the public interest and for the protection of investors; 
35.30 	(24) any transaction effected by or through a Canadian broker-dealer exempted from 
35.31 	broker-dealer registration pursuant to section 80A.56(b)(3); or 
35.32 	(25)(A) the offer and sale by a cooperative organized under chapter 308A, or 
35.33 	under the laws of another state, of its securities when the securities are offered and sold 
35.34 	only to its members, or when the purchase of the securities is necessary or incidental to 
35.35 	establishing membership in the cooperative, or when the securities are issued as patronage 
35.36 	dividends. This paragraph applies to a cooperative organized under chapter 308A, or under 
36.1 	the laws of another state, only if the cooperative has filed with the administrator a consent 
36.2 	to service of process under section 80A.88 and has, not less than ten days before the 
36.3 	issuance or delivery, furnished the administrator with a written general description of the 
36.4 	transaction and any other information that the administrator requires by rule or otherwise; 
36.5 	(B) the offer and sale by a cooperative organized under chapter 308B of its securities 
36.6 	when the securities are offered and sold to its existing members or when the purchase of the 
36.7 	securities is necessary or incidental to establishing patron membership in the cooperative, 
36.8 	or when such securities are issued as patronage dividends. The administrator has the 
36.9 	power to define "patron membership" for purposes of this paragraph. This paragraph 
36.10 	applies to securities, other than securities issued as patronage dividends, only when: 
36.11 	(i) the issuer, before the completion of the sale of the securities, provides each 
36.12 	offeree or purchaser disclosure materials that, to the extent material to an understanding of 
36.13 	the issuer, its business, and the securities being offered, substantially meet the disclosure 
36.14 	conditions and limitations found in rule 502(b) of Regulation D promulgated by the 
36.15 	Securities and Exchange Commission, Code of Federal Regulations, title 17, section 
36.16 	230.502; and 
36.17 	(ii) within 15 days after the completion of the first sale in each offering completed in 
36.18 	reliance upon this exemption, the cooperative has filed with the administrator a consent to 
36.19 	service of process under section 80A.88 (or has previously filed such a consent), and has 
36.20 	furnished the administrator with a written general description of the transaction and any 
36.21 	other information that the administrator requires by rule or otherwise; and 
36.22 	(C) a cooperative may, at or about the same time as offers or sales are being 
36.23 	completed in reliance upon the exemptions from registration found in this subpart and as 
36.24 	part of a common plan of financing, offer or sell its securities in reliance upon any other 
36.25 	exemption from registration available under this chapter.  The offer or sale of securities in 
36.26 	reliance upon the exemptions found in this subpart will not be considered or deemed a part 
36.27 	of or be integrated with any offer or sale of securities conducted by the cooperative in 
36.28 	reliance upon any other exemption from registration available under this chapter, nor will 
36.29 	offers or sales of securities by the cooperative in reliance upon any other exemption from 
36.30 	registration available under this chapter be considered or deemed a part of or be integrated 
36.31 	with any offer or sale conducted by the cooperative in reliance upon this paragraph. 

36.32 	Sec. 33. Minnesota Statutes 2008, section 80A.65, subdivision 6, is amended to read:
36.33 		Subd. 6.Rescission offer filing fee. The filing of a rescission offer under section 
36.34 	80A.77 80A.46(19), shall be accompanied by the fees as calculated in subdivision 1.

37.1 	Sec. 34. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision 
37.2 	to read:
37.3 		Subd. 1a.Brokerage; business entity. "Brokerage" or "business entity" means a 
37.4 	corporation, partnership, limited liability company, limited liability partnership, or other 
37.5 	business structure that holds a real estate broker license.

37.6 	Sec. 35. Minnesota Statutes 2008, section 82.17, subdivision 15, is amended to read:
37.7 		Subd. 15.Protective list. "Protective list" means the written list of names and 
37.8 	addresses of prospective purchasersbuyers with whom a licensee has negotiated the sale 
37.9 	or rental of the property or to whom a licensee has exhibited the property before the 
37.10 	expiration of the listing agreement. For the purposes of this subdivision, "property" means 
37.11 	the property that is the subject of the listing agreement in question.

37.12 	Sec. 36. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision 
37.13 	to read:
37.14 		Subd. 20a.Responsible person. "Responsible person" means a natural person that 
37.15 	is an officer of a corporation, a partner of a partnership, a general partner of a limited 
37.16 	liability partnership, or a manager of a limited liability company.

37.17 	Sec. 37. Minnesota Statutes 2008, section 82.19, is amended to read:
37.18 	82.19 COMPENSATION.
37.19 		Subdivision 1.Licensee to receive only from broker. A licensee shall not 
37.20 	accept a commission, compensation, referral fee, or other valuable consideration for the 
37.21 	performance of any acts requiring a real estate license from any person except the real 
37.22 	estate broker to whom the licensee is licensed or to whom the licensee was licensed at the 
37.23 	time of the transaction.
37.24 		Subd. 1a.Commission-splitting, rebates, referral fee, and fees. (a) In connection 
37.25 	with a real estate or business opportunity transaction, a real estate broker or real estate 
37.26 	salesperson shall not offer, pay, or give, and a person shall not accept, any compensation 
37.27 	or other thing of value from a real estate broker or real estate salesperson by way of 
37.28 	commission-splitting, rebate, referral fees, finder's fees, or otherwise.
37.29 	(b) This subdivision does not apply to transactions:
37.30 	(1) between a licensed real estate broker or salesperson and the parties to the 
37.31 	transaction;
37.32 	(2) among persons licensed as provided in this chapter;
38.1 	(3) between a licensed real estate broker or salesperson and persons from other 
38.2 	jurisdictions similarly licensed in that jurisdiction;
38.3 	(4) involving timeshare or other recreational lands where the amount offered or paid 
38.4 	does not exceed $150, and payment is not conditioned upon any sale but is made merely 
38.5 	for providing the referral and the person paying the fee is bound by any representations 
38.6 	made by the person receiving the fee; and
38.7 	(5) involving a person who receives a referral fee from a person or an agent of a 
38.8 	person licensed under this section, provided that in any 12-month period, no recipient may 
38.9 	earn more than the value of one month's rent, that the recipient is a resident of the property 
38.10 	or has lived there within 60 days of the payment of the fee, and that the person paying the 
38.11 	fee is bound by any representations made by the recipient of the fee.
38.12 		Subd. 2.Undisclosed compensation. A licensee shall not accept, give, or charge 
38.13 	any undisclosed compensation or realize any direct or indirect remuneration that inures to 
38.14 	the benefit of the licensee on an expenditure made for a principal.
38.15 		Subd. 2a.Sharing of compensation with other brokers. The seller may, in 
38.16 	the listing agreement, authorize the seller's broker to disburse part of the broker's 
38.17 	compensation to other brokers, including the buyer's brokers solely representing the buyer.
38.18 		Subd. 3.Limitation on broker when transaction not completed. When the owner 
38.19 	fails or is unable to consummate a real estate transaction, through no fault of the purchaser, 
38.20 	the listing broker may not claim any portion of any trust funds deposited with the broker 
38.21 	by the purchaser, absent a separate agreement with the purchaser.
38.22 		Subd. 3a.Directing payment of compensation. A licensed real estate broker 
38.23 	or salesperson may assign or direct that commissions or other compensation earned in 
38.24 	connection with a real estate or business opportunity transaction be paid to a corporation, 
38.25 	limited liability company, or sole proprietorship of which the licensed real estate broker 
38.26 	or salesperson is the sole owner.
38.27 		Subd. 3b.Closing agent fee. A real estate closing agent may not charge a fee for 
38.28 	closing services to a borrower, and a borrower may not be required to pay such a fee at 
38.29 	settlement, if the fee was not previously disclosed in writing at least one business day 
38.30 	before the settlement. This disclosure requirement is satisfied if a disclosure is made or 
38.31 	an estimate given under section 507.45.

38.32 	Sec. 38. Minnesota Statutes 2008, section 82.21, subdivision 2, is amended to read:
38.33 		Subd. 2.Listing agreements. (a) Requirement. Licensees shall obtain a signed 
38.34 	listing agreement or other signed written authorization from the owner of real property or 
39.1 	from another person authorized to offer the property for sale or lease before advertising to 
39.2 	the general public that the real property is available for sale or lease. 
39.3 	For the purposes of this section "advertising" includes placing a sign on the owner's 
39.4 	property that indicates that the property is being offered for sale or lease.
39.5 	(b) Contents. All listing agreements must be in writing and must include: 
39.6 	(1) a definite expiration date;
39.7 	(2) a description of the real property involved;
39.8 	(3) the list price and any terms required by the seller;
39.9 	(4) the amount of any compensation or commission or the basis for computing 
39.10 	the commission;
39.11 	(5) a clear statement explaining the events or conditions that will entitle a broker to 
39.12 	a commission;
39.13 	(6) a clear statement explaining if the agreement may be canceled and the terms 
39.14 	under which the agreement may be canceled;
39.15 	(6)(7) information regarding an override clause, if applicable, including a statement 
39.16 	to the effect that the override clause will not be effective unless the licensee supplies the 
39.17 	seller with a protective list within 72 hours after the expiration of the listing agreement;
39.18 	(7)(8) the following notice in not less than ten point boldface type immediately 
39.19 	preceding any provision of the listing agreement relating to compensation of the licensee:
39.20 	"NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR 
39.21 	MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN 
39.22 	EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";
39.23 	(8)(9) for residential property listings, the following "dual agency" disclosure 
39.24 	statement:
39.25 	If a buyer represented by broker wishes to buy the seller's property, a dual agency 
39.26 	will be created. This means that broker will represent both the seller(s) and the buyer(s), 
39.27 	and owe the same duties to the buyer(s) that broker owes to the seller(s). This conflict 
39.28 	of interest will prohibit broker from advocating exclusively on the seller's behalf. Dual 
39.29 	agency will limit the level of representation broker can provide. If a dual agency should 
39.30 	arise, the seller(s) will need to agree that confidential information about price, terms, and 
39.31 	motivation will still be kept confidential unless the seller(s) instruct broker in writing to 
39.32 	disclose specific information about the seller(s). All other information will be shared. 
39.33 	Broker cannot act as a dual agent unless both the seller(s) and the buyer(s) agree to it. By 
39.34 	agreeing to a possible dual agency, the seller(s) will be giving up the right to exclusive 
39.35 	representation in an in-house transaction. However, if the seller(s) should decide not to 
40.1 	agree to a possible dual agency, and the seller(s) want broker to represent the seller(s), the 
40.2 	seller(s) may give up the opportunity to sell the property to buyers represented by broker.
40.3 	Seller's Instructions to Broker
40.4 	Having read and understood this information about dual agency, seller(s) now 
40.5 	instructs broker as follows:

40.6
40.7	........
		Seller(s) will agree to a dual agency representation and will consider 
offers made by buyers represented by broker.
	
40.8
40.9	........
		Seller(s) will not agree to a dual agency representation and will not 
consider offers made by buyers represented by broker.

40.10	........
		........
	
40.11	Seller
		Real Estate Company Name

40.12	........
		By:
	........
	
40.13	Seller
			Salesperson
	
40.14	Date : ........;
				
40.15 	(9)(10) a notice requiring the seller to indicate in writing whether it is acceptable to 
40.16 	the seller to have the licensee arrange for closing services or whether the seller wishes to 
40.17 	arrange for others to conduct the closing; and
40.18 	(10)(11) for residential listings, a notice stating that after the expiration of the 
40.19 	listing agreement, the seller will not be obligated to pay the licensee a fee or commission 
40.20 	if the seller has executed another valid listing agreement pursuant to which the seller is 
40.21 	obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of 
40.22 	the real property in question. This notice may be used in the listing agreement for any 
40.23 	other type of real estate.
40.24 	(c) Prohibited provisions. Except as otherwise provided in paragraph (d), clause 
40.25 	(2), licensees shall not include in a listing agreement a holdover clause, automatic 
40.26 	extension, or any similar provision, or an override clause the length of which is more than 
40.27 	six months after the expiration of the listing agreement.
40.28 	(d) Override clauses. (1) Licensees shall not seek to enforce an override clause 
40.29 	unless a protective list has been furnished to the seller within 72 hours after the expiration 
40.30 	of the listing agreement.
40.31 	(2) A listing agreement may contain an override clause of up to two years in length 
40.32 	when used in conjunction with the purchase or sale of a business. The length of the 
40.33 	override clause must be negotiable between the licensee and the seller of the business. The 
40.34 	protective list provided in connection with the override clause must include the written 
40.35 	acknowledgment of each party named on the protective list, that the business which is the 
40.36 	subject of the listing agreement was presented to that party by the licensee.
41.1 	(e) Protective lists. A broker or salesperson has the burden of demonstrating that 
41.2 	each person on the protective list has, during the period of the listing agreement, either 
41.3 	made an affirmative showing of interest in the property by responding to an advertisement 
41.4 	or by contacting the broker or salesperson involved or has been physically shown the 
41.5 	property by the broker or salesperson. For the purpose of this section, the mere mailing or 
41.6 	other distribution by a licensee of literature setting forth information about the property in 
41.7 	question does not, of itself, constitute an affirmative showing of interest in the property on 
41.8 	the part of a subsequent purchaser.
41.9 	For listings of nonresidential real property which do not contain the notice described 
41.10 	in paragraph (b), clause (10) (11), the protective list must contain the following notice in 
41.11 	boldface type:
41.12 	"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE 
41.13 	PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME 
41.14 	APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS 
41.15 	TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK 
41.16 	COMPETENT ADVICE."

41.17 	Sec. 39. Minnesota Statutes 2008, section 82.24, subdivision 3, is amended to read:
41.18 		Subd. 3.Broker payment consolidation. For all license renewal fees, recovery 
41.19 	fund renewal fees, and recovery fund assessments pursuant to this section and section 
41.20 	82.43, the broker must remit the fees or assessments for the company, broker, and all 
41.21 	salespersons licensed to the broker, in the form of a single check payment.  

41.22 	Sec. 40. Minnesota Statutes 2008, section 82.29, subdivision 4, is amended to read:
41.23 		Subd. 4.Broker's examination. (a) The examination for a real estate broker's 
41.24 	license shall be more exacting than that for a real estate salesperson, and shall require a 
41.25 	higher degree of knowledge of the fundamentals of real estate practice and law.
41.26 	(b) Every application for a broker's examination shall be accompanied by proof that 
41.27 	the applicant has had a minimum of two years of actual experience within the previous 
41.28 	five-year period prior to application as a licensed real estate salesperson in this or in 
41.29 	another state having comparable requirements or is, in the opinion of the commissioner, 
41.30 	otherwise or similarly qualified by reason of education or practical experience. The 
41.31 	applicant shall have completed educational requirements in accordance with subdivision 8. 
41.32 	(c) An applicant for a limited broker's license pursuant to section 82.34, subdivision 
41.33 	13, shall not be required to have a minimum of two years of actual experience as a real 
41.34 	estate person in order to obtain a limited broker's license to act as principal only. 

42.1 	Sec. 41. Minnesota Statutes 2008, section 82.29, subdivision 5, is amended to read:
42.2 		Subd. 5.Waivers. The commissioner may waivegrant a waiver of the real estate 
42.3 	licensing experience requirement for the broker's examination to a qualified applicant for 
42.4 	a waiver.
42.5 	(a) AnA qualified applicant for a waiver shall provide evidence of is an individual 
42.6 	who:
42.7 	(1) successful completion of a minimum of 90 quarter credits or 270 classroom 
42.8 	hours of real estate-related studies has a degree in real estate from an accredited college 
42.9 	or university;
42.10 	(2) a minimum of five consecutive years of practical experience in real estate-related 
42.11 	areas is a licensed practicing attorney whose practice involves real estate law; or
42.12 	(3) successful completion of 30 credits or 90 classroom hours and three consecutive 
42.13 	years of practical experience in real estate-related areas is a public officer whose official 
42.14 	duties involve real estate law or real estate transactions.
42.15 	(b) A request for a waiver shall be submitted to the commissioner in writing on a 
42.16 	form prescribed by the commissioner and be accompanied by documents necessary to 
42.17 	evidence qualification as set forth in paragraph (a).
42.18 	(c) The waiver will lapse if the applicant fails to successfully complete the broker's 
42.19 	examination within one year from the date of the granting of the waiver.

42.20 	Sec. 42. Minnesota Statutes 2008, section 82.29, subdivision 8, is amended to read:
42.21 		Subd. 8.Instruction; new licenses. (a) Every An applicant for a salesperson's 
42.22 	license shall be required to successfully complete a course of study in the real estate field 
42.23 	consisting of 30 hours of instruction approved by the commissioner before taking the 
42.24 	examination specified in subdivision 1. Every An applicant for a salesperson's license 
42.25 	shall be required to successfully complete an additional course of study in the real estate 
42.26 	field consisting of 60 hours of instruction approved by the commissioner, of which three 
42.27 	hours shall consist of training in state and federal fair housing laws, regulations, and 
42.28 	rules, and of which two hours must consist of training in laws and regulations on agency 
42.29 	representation and disclosure, before filing an application for the license. This subdivision 
42.30 	does not apply to salespeople licensed in Minnesota before July 1, 1969.
42.31 	(b) An applicant for a broker's license must successfully complete a course of study 
42.32 	in the real estate field consisting of 30 hours of instruction approved by the commissioner, 
42.33 	of which three hours shall consist of training in state and federal fair housing laws, 
42.34 	regulations, and rules. The course must have been completed within 12 months prior to 
42.35 	the date of application for the broker's license.
43.1 	(c) An applicant for a real estate closing agent's license must successfully complete 
43.2 	a course of study relating to closing services consisting of eight hours of instruction 
43.3 	approved by the commissioner.

43.4 	Sec. 43. Minnesota Statutes 2008, section 82.31, subdivision 1, is amended to read:
43.5 		Subdivision 1.Qualification of applicants. Every An applicant for a real estate 
43.6 	broker,or real estate salesperson, or real estate closing agent license shall be at least 18 
43.7 	years of age at the time of making application for said license.

43.8 	Sec. 44. Minnesota Statutes 2008, section 82.31, subdivision 2, is amended to read:
43.9 		Subd. 2.Application for license; contents. (a) Every An applicant for a license 
43.10 	as a real estate broker,or real estate salesperson, or closing agent shall make an 
43.11 	application in writing upon forms prepared and furnishedthe format prescribed by the 
43.12 	commissioner. Each The application shall be signed and sworn to by the applicant and 
43.13 	shall be accompanied by the license fee required by this chapter.
43.14 	(b) Each application for a real estate broker license,or real estate salesperson 
43.15 	license, or real estate closing agent license shall contain such information as required 
43.16 	by the commissioner consistent with the administration of the provisions and purposes 
43.17 	of this chapter.
43.18 	(c) Each The application for a real estate salesperson license shall give the applicant's 
43.19 	legal name, age, residence address, and the name and place of business of the real estate 
43.20 	broker on whose behalf the salesperson is to be acting.
43.21 	(d) Each application for a real estate closing agent license shall give the applicant's 
43.22 	name, age, residence address, and the name and place of business of the closing agent.
43.23 	(e)(d) The commissioner may require such further information as the commissioner 
43.24 	deems appropriate to administer the provisions and further the purposes of this chapter.
43.25 	(f) Applicants (e) An applicant for a real estate salesperson license shall submit 
43.26 	to the commissioner, along with the application for licensure, a copy of the course 
43.27 	completion certificate for courses I, II, and III and passing examination results.

43.28 	Sec. 45. Minnesota Statutes 2009 Supplement, section 82.31, subdivision 4, is 
43.29 	amended to read:
43.30 		Subd. 4.Corporate and partnership Business entity; brokerage licenses.
 43.31 	(a) A corporation business entity applying for a license shall have at least one officer
43.32 	responsible person individually licensed to act as broker for the corporation brokerage. 
43.33 	The corporation business entity broker's license shall extend no authority to act as broker 
44.1 	to any person other than the corporate business entity. Each officer responsible person
44.2 	who intends to act as a broker shall obtain a license.
44.3 	(b) A partnership business entity applying for a license shall have at least one partner
44.4 	responsible person individually licensed to act as broker for the partnership business entity. 
44.5 	Each partner responsible person who intends to act as a broker shall obtain a license.
44.6 	(c) Applications An application for a business entity license made by a corporation 
44.7 	shall be verified by the president and one other officer. Applications made by a partnership
44.8 	shall be verified by at least two partners responsible persons for the business entity.
44.9 	(d) Any partner or officer A responsible person who ceases to act as broker for 
44.10 	a partnership or corporation business entity shall notify the commissioner upon said 
44.11 	termination. The individual licenses of all salespersons acting on behalf of a corporation 
44.12 	or partnership,brokerage are automatically ineffective upon the revocation or suspension 
44.13 	of the license of the partnership or corporation brokerage. The commissioner may suspend 
44.14 	or revoke the license of an officer or partner a responsible person licensee without 
44.15 	suspending or revoking the license of the corporation or partnership business entity.
44.16 	(e) The application of all officersresponsible persons of a corporation or partners 
44.17 	in a partnership business entity who intend to act as a broker brokers on behalf of a 
44.18 	corporation or partnership business entity shall accompany the initial license application 
44.19 	of the corporation or partnership business entity. Officers or partners Responsible persons
44.20 	intending to act as brokers subsequent to the licensing of the corporation or partnership
44.21 	business entity shall procure an individual real estate broker's license prior to acting in the 
44.22 	capacity of a broker. No corporate officer, or partner, responsible person who maintains a 
44.23 	salesperson's license may exercise any authority over any trust account administered by 
44.24 	the broker nor may they be vested with any supervisory authority over the broker.
44.25 	(f) The corporation or partnership business entity applicant shall make available 
44.26 	upon request, such records and data required by the commissioner for enforcement 
44.27 	of this chapter.
44.28 	(g) The commissioner may require further information, as the commissioner deems 
44.29 	appropriate, to administer the provisions and further the purposes of this chapter.

44.30 	Sec. 46. Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:
44.31 	82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.
44.32 	(a) All real estate salespersons and all real estate brokers shall be required to 
44.33 	successfully complete 30 hours of real estate continuing education, either as a student or 
44.34 	a lecturer, in courses of study approved by the commissioner, during the initial license 
44.35 	period and during each succeeding 24-month license period. At least 15 of the 30 credit 
45.1 	hours must be completed during the first 12 months of the 24-month licensing period. 
45.2 	Licensees may not claim credit for continuing education not actually completed as of the 
45.3 	date their report of continuing education compliance is filed.
45.4 	(b) The commissioner may adopt rules defining the standards for course and 
45.5 	instructor approval, and may adopt rules for the proper administration of prelicense 
45.6 	instruction as required under section 82.29, subdivision 8, and continuing education as 
45.7 	required under this section and sections 82.29; 82.31, subdivisionssubdivision 5 and 6; 
45.8 	82.33, subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course 
45.9 	which can be completed by the student at home or outside the classroom without the 
45.10 	supervision of an instructor except accredited courses using new delivery technology, 
45.11 	including interactive technology, and the Internet. The commissioner may approve 
45.12 	courses of study in the real estate field offered in educational institutions of higher learning 
45.13 	in this state or courses of study in the real estate field developed by and offered under 
45.14 	the auspices of the National Association of Realtors, its affiliates, or private real estate 
45.15 	schools. Courses in motivation, salesmanship, psychology, or time management shall not 
45.16 	be approved by the commissioner for continuing education credit. The commissioner may 
45.17 	approve courses in any other subjects, including, but not limited to, communication, 
45.18 	marketing, negotiation, and technology for continuing education credit. 
45.19 	(c) As part of the continuing education requirements of this section and sections 
45.20 	82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the 
45.21 	commissioner shall require that all real estate brokers and salespersons receive: 
45.22 	(1) at least one hour of training during each license period in courses in laws or 
45.23 	regulations on agency representation and disclosure; and
45.24 	(2) at least one hour of training during each license period in courses in state and 
45.25 	federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses 
45.26 	designed to help licensees to meet the housing needs of immigrant and other underserved 
45.27 	populations.
45.28 	Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers 
45.29 	engaged solely in the commercial real estate business who file with the commissioner 
45.30 	a verification of this status along with the continuing education report required under 
45.31 	paragraph (a).
45.32 	(d) The commissioner is authorized to establish a procedure for renewal of course 
45.33 	accreditation.
45.34 	(e) Approved continuing education courses may be sponsored or offered by a broker 
45.35 	of a real estate company and may be held on the premises of a company licensed under 
45.36 	this chapter. All continuing education course offerings must be open to any interested 
46.1 	individuals. Access may be restricted by the education provider based on class size 
46.2 	only. Courses must not be approved if attendance is restricted to any particular group of 
46.3 	people. A broker must comply with all continuing education rules prescribed by the 
46.4 	commissioner. The commissioner shall not approve any prelicense instruction courses 
46.5 	offered by, sponsored by, or affiliated with any person or company licensed to engage in 
46.6 	the real estate business.
46.7 	(f) Credit may not be earned if the licensee has previously obtained credit for the 
46.8 	same course as either a student or instructor during the same licensing period.
46.9 	(g) The real estate education course completion certificate must be in the form set 
46.10 	forth by the commissioner. Students are responsible for maintaining copies of course 
46.11 	completion certificates.
46.12 	(h) An approved prelicense 30-hour broker course may be used for continuing 
46.13 	education credit by a real estate salesperson or broker if the course is completed during 
46.14 	the appropriate licensing period.

46.15 	Sec. 47. Minnesota Statutes 2008, section 82.33, subdivision 1, is amended to read:
46.16 		Subdivision 1.Duration. No The renewal of a salesperson's license shall be is not
46.17 	effective beyond a date two years after the granting of such the salesperson's license unless 
46.18 	the salesperson has furnished evidence of compliance with section 82.29, subdivision 8. 
46.19 	The commissioner shall cancel the license of any a salesperson who fails to comply with 
46.20 	section 82.29, subdivision 8. This subdivision shall not apply to salespeople licensed in 
46.21 	Minnesota prior to July 1, 1969.

46.22 	Sec. 48. Minnesota Statutes 2008, section 82.33, is amended by adding a subdivision 
46.23 	to read:
46.24 		Subd. 1a.Broker's responsibility. (a) A broker shall renew the license of each 
46.25 	eligible salesperson who is and will continue to be associated with the broker. For 
46.26 	the purposes of this subdivision, an eligible salesperson is one who has demonstrated 
46.27 	compliance with all renewal requirements before June 15 of the renewal year.
46.28 	(b) When a broker does not intend to renew the license of an eligible salesperson 
46.29 	who is associated with the broker, the broker must notify the salesperson in writing 30 
46.30 	days before June 15 of the renewal year.
46.31 	(c) When the broker responsible for the salesperson's license renewal does not renew 
46.32 	an eligible salesperson's license before the renewal deadline, the broker shall pay on the 
46.33 	salesperson's behalf any additional higher license fees that result.

47.1 	Sec. 49. Minnesota Statutes 2008, section 82.33, subdivision 2, is amended to read:
47.2 		Subd. 2.Timely renewals. PersonsA person whose applications haveapplication 
47.3 	for a license renewal has not been properly and timely filed and who havehas not received 
47.4 	notice of denialapproval of renewal are deemed to have been approved for renewal and
47.5 	may not continue to transact business either as a real estate broker, salesperson, or closing 
47.6 	agent whether or not the renewed license has been received on or before July 1after June 
47.7 	30 of the renewal year until approval of renewal is received. Application for renewal of a 
47.8 	license shall be deemed to have been is timely filed if received by the commissioner by, or 
47.9 	mailed with proper postage and postmarked by,:
47.10 	(1) all requirements for renewal, including continuing education requirements, 
47.11 	have been completed by June 15 of the renewal year. Applications for renewal shall be 
47.12 	deemed properly filed if made; and
47.13 	(2) the application is submitted before the renewal deadline in the manner 
47.14 	prescribed by the commissioner upon forms duly executed and sworn to, accompanied 
47.15 	by fees prescribed by this chapter, and containcontaining any information which the 
47.16 	commissioner may require requires.

47.17 	Sec. 50. Minnesota Statutes 2008, section 82.34, subdivision 1, is amended to read:
47.18 		Subdivision 1.Generally. (a) The commissioner shall issue a license as a real estate 
47.19 	broker,or real estate salesperson, or closing agent to any person who qualifies for such
47.20 	the license under the terms of this chapter.
47.21 	(b) The commissioner is authorized to establish by rule a special license for real 
47.22 	estate brokers and real estate salespeople engaged solely in the rental or management of 
47.23 	an interest or estate in real estate, to prescribe qualifications for the license, and to issue 
47.24 	the license consistent with the terms of this chapter. This clause shall not be construed to 
47.25 	require those owners or managers or their agents or employees who are excluded by section 
47.26 	82.23, clause (d), from the definition of real estate broker, to obtain the special license.  

47.27 	Sec. 51. Minnesota Statutes 2008, section 82.34, subdivision 2, is amended to read:
47.28 		Subd. 2.Additional broker's license. An individual who holds a broker's license 
47.29 	in his or her the broker's own name or for or on behalf of a corporation or partnership
47.30 	business entity must be issued an additional broker's license only upon demonstrating:
47.31 	(1) that the additional license is necessary in order to serve a legitimate business 
47.32 	purpose; 
48.1 	(2) that the broker will be capable of supervising all salespersons over whom he or 
48.2 	she the broker will have supervisory responsibility or, in the alternative, that the broker 
48.3 	will have no supervisory responsibilities under the additional license; and 
48.4 	(3) that the broker:
48.5 	(i) has a substantialat least 51 percent ownership interest in each corporation or 
48.6 	partnershipbusiness entity for or on whose behalf he or she the broker holds or will 
48.7 	hold a broker's license.; or
48.8 	(ii) is an elected or appointed officer, signing partner, or managing member of both 
48.9 	the business entity for which or on whose behalf the broker already holds a license, and 
48.10 	an affiliated business entity for which or on whose behalf the broker is applying for an 
48.11 	additional license.
48.12 	The requirement of a substantial ownership interest does not apply where the broker 
48.13 	seeking the additional license or licenses is an officer of a corporation for or on whose 
48.14 	behalf the broker already holds a license and the broker is applying for the additional 
48.15 	license or licenses for or on behalf of an affiliated corporation or corporations of which he 
48.16 	or she is also an officer. For the purpose of this section and sections 82.31, subdivisions 1 
48.17 	to 4; 82.33, subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, "affiliated corporation
48.18 	business entity" means a corporation which is directly or indirectly controlledbusiness 
48.19 	entity that is majority-owned by the same persons as the corporationbusiness entity for 
48.20 	which or on whose behalf the broker is already licensed to act.  
48.21 	For the purposes of this section and sections 82.31, subdivisions 1 to 4; 82.33, 
48.22 	subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, a legitimate business purpose 
48.23 	includes engaging in a different and specialized area of real estate or maintaining an 
48.24 	existing business name.  

48.25 	Sec. 52. Minnesota Statutes 2008, section 82.34, subdivision 4, is amended to read:
48.26 		Subd. 4.Issuance of license; salesperson. A salesperson must be licensed to act 
48.27 	on behalf of a licensed broker and may not be licensed to act on behalf of more than 
48.28 	one broker in this state during the same period of time. The license of each real estate 
48.29 	salesperson shall be mailed to and remain in the possession of the licensed broker with 
48.30 	whom the salesperson is or is to be associated until canceled or until such licensee leaves 
48.31 	such broker.

48.32 	Sec. 53. Minnesota Statutes 2008, section 82.34, subdivision 5, is amended to read:
48.33 		Subd. 5.Effective date of license. Licenses A license renewed pursuant to this 
48.34 	chapter are is valid for a period of 24 months. New licenses A new license issued during a 
49.1 	24-month licensing period will expire on June 30 of the expiration year assigned to the 
49.2 	license. Implementation of the 24-month licensing program must be staggered so that 
49.3 	approximately one-half of the licenses will expire on June 30 of each even-numbered year 
49.4 	and the other one-half on June 30 of each odd-numbered year. Those licensees who will 
49.5 	receive a 12-month license on July 1, 1995, because of the staggered implementation 
49.6 	schedule will pay for the license a fee reduced by an amount equal to one-half the fee 
49.7 	for renewal of the license.

49.8 	Sec. 54. Minnesota Statutes 2008, section 82.34, subdivision 13, is amended to read:
49.9 		Subd. 13.Limited broker's license. (a) The commissioner shall have the authority 
49.10 	to issue a limited real estate broker's license authorizing the licensee to engage in 
49.11 	transactions as principal only. Such license shall be issued only after receipt of the 
49.12 	application described in section 82.31, subdivision 2, and payment of the fee prescribed 
49.13 	by section 82.24, subdivision 1. No salesperson may be licensed to act on behalf of an 
49.14 	individual holding a limited broker's license. An officer of a corporation or partner of a 
49.15 	partnership licensed as a limited broker may act on behalf of that corporation or partnership 
49.16 	without being subject to the licensing requirements. following limited activities:
49.17 	(b) A limited broker's license shall also authorize the licensee to engage in 
49.18 	negotiation of mortgage loans, other than residential mortgage loans, as described in 
49.19 	section 82.17, subdivision 18, clause (b).  
49.20 	(1) the licensee to engage in transactions as principal only; or
49.21 	(2) the licensee to engage in negotiations of mortgage loans, other than residential 
49.22 	mortgage loans, as described in section 82.17, subdivision 18, clause (b).
49.23 	The license may be issued only after receipt of the application described in section 
49.24 	82.31, subdivision 2, and payment of the fee prescribed by section 82.24, subdivision 1. A 
49.25 	salesperson may not be licensed to act on behalf of an individual holding a limited broker's 
49.26 	license. A responsible person of a business entity licensed as a limited broker may act on 
49.27 	behalf of that business entity without being subject to the licensing requirements.

49.28 	Sec. 55. Minnesota Statutes 2008, section 82.39, is amended to read:
49.29 	82.39 NOTICE TO COMMISSIONER.
49.30 		Subdivision 1.Notice Change of application information. Notice in writing 
49.31 	or in the format prescribed by the commissioner shall be given to the commissioner by 
49.32 	each a licensee of any change inof information contained in the license application on file 
49.33 	with the commissioner, including but not limited to personal name, trade name, address or 
50.1 	business location not later than ten days after such the change. The commissioner shall 
50.2 	issue a new license if required for the unexpired period.
50.3 		Subd. 2.Mandatory. Licensees The licensee shall notify the commissioner in 
50.4 	writing or in the format prescribed by the commissioner within ten days of the facts in 
50.5 	subdivisions 3 to 5.
50.6 		Subd. 3.Civil judgment. Licensees The licensee must notify the commissioner 
50.7 	in writing within ten days of a final adverse decision or order of a court, whether or not 
50.8 	the decision or order is appealed, regarding any proceeding in which the licensee was 
50.9 	named as a defendant, and which alleged fraud, misrepresentation, or the conversion of 
50.10 	funds, if the final adverse decision relates to the allegations of fraud, misrepresentation, or 
50.11 	the conversion of funds.
50.12 		Subd. 4.Disciplinary action. The licensee must notify the commissioner in writing 
50.13 	within ten days of the suspension or revocation of the licensee's real estate or other 
50.14 	occupational license issued by this state or another jurisdiction.
50.15 		Subd. 5.Criminal offense. The licensee must notify the commissioner in writing 
50.16 	within ten days if the licensee is charged with, adjudged guilty of, or enters a plea of 
50.17 	guilty or nolo contendere to a charge of any felony, or of any gross misdemeanor alleging 
50.18 	fraud, misrepresentation, conversion of funds, or a similar violation of any real estate 
50.19 	licensing law.

50.20 	Sec. 56. Minnesota Statutes 2008, section 82.41, subdivision 1, is amended to read:
50.21 		Subdivision 1.License required. No person shall act as a real estate broker,
50.22 	or real estate salesperson, or real estate closing agent unless licensed as herein provided
50.23 	in this section.

50.24 	Sec. 57. Minnesota Statutes 2008, section 82.41, subdivision 2, is amended to read:
50.25 		Subd. 2.Misrepresenting status as licensee. No persons shall advertise or 
50.26 	represent themselves to be real estate brokers, salespeople, or closing agents or real estate 
50.27 	salespersons unless licensed as herein provided in this section.

50.28 	Sec. 58. Minnesota Statutes 2008, section 82.41, is amended by adding a subdivision 
50.29 	to read:
50.30 		Subd. 3a.Limitation on broker when transaction not completed. When the 
50.31 	owner fails or is unable to consummate a real estate transaction, through no fault of the 
50.32 	purchaser, the listing broker may not claim any portion of any trust funds deposited with 
50.33 	the broker by the purchaser, absent a separate agreement with the purchaser.

51.1 	Sec. 59. Minnesota Statutes 2008, section 82.45, subdivision 3, is amended to read:
51.2 		Subd. 3.Retention. A licensed real estate broker shall retain for threesix years 
51.3 	copies of all listings, buyer representation and facilitator services contracts, deposit 
51.4 	receipts, purchase money contracts, canceled checks, trust account records, and such 
51.5 	other documents as may reasonably be related to carrying on a real estate brokerage 
51.6 	business. The retention period shall run from the date of the closing of the transaction, 
51.7 	or from the date of the document if the document is not consummated. The following 
51.8 	documents need not be retained:
51.9 	(1) agency disclosure forms provided to prospective buyers or sellers, where no 
51.10 	contractual relationship is subsequently created and no services are provided by the 
51.11 	licensee; and
51.12 	(2) facilitator services contracts or buyer representation contracts entered into with 
51.13 	prospective buyers, where the prospective buyer abandons the contractual relationship 
51.14 	before any services have been provided by the licensee.

51.15 	Sec. 60. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision 
51.16 	to read:
51.17 		Subd. 4.Storage. Storage of documents identified in subdivision 3 may be stored 
51.18 	by electronic means.

51.19 	Sec. 61. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision 
51.20 	to read:
51.21 		Subd. 5.Destruction. After the retention period specified in subdivision 3 has 
51.22 	elapsed and the broker no longer wishes to retain the documents, the broker must ensure 
51.23 	that the documents are disposed of according to the confidential record destruction 
51.24 	procedures of the Fair and Accurate Credit Transaction Act of 2003, Public Law 108-159.

51.25 	Sec. 62. Minnesota Statutes 2008, section 82.48, subdivision 2, is amended to read:
51.26 		Subd. 2.Penalty for noncompliance. The methods, acts, or practices set forth in 
51.27 	subdivisions 1 and 3 and sections 82.19; 82.22; 82.27; 82.31, subdivision 6;82.37; and 
51.28 	82.41, subdivision 11, are standards of conduct governing the activities of real estate 
51.29 	brokers and salespersons. Failure to comply with these standards shall constitute grounds 
51.30 	for license denial, suspension, or revocation, or for censure of the licensee. 

51.31 	Sec. 63. Minnesota Statutes 2008, section 82.48, subdivision 3, is amended to read:
52.1 		Subd. 3.Responsibilities of brokers. (a) Supervision of personnel.Brokers A 
52.2 	broker shall adequately supervise the activities of their the broker's salespersons and 
52.3 	employees. Supervision includes the ongoing monitoring of listing agreements, purchase 
52.4 	agreements, other real estate-related documents which are prepared or drafted by the 
52.5 	broker's salespersons or employees or which are otherwise received by the broker's office, 
52.6 	and the review of all trust account books and records. If an individual broker maintains 
52.7 	more than one place of business, each place of business shall be under the broker's direction 
52.8 	and supervision. If a partnership or corporate brokerbrokerage maintains more than one 
52.9 	place of business, each place of business shall be under the direction and supervision of an 
52.10 	individual broker licensed to act on behalf of the partnership or corporation brokerage. 
52.11 	The primary broker shall maintain records specifying the name of each broker 
52.12 	responsible for the direction and supervision of each place of business. If an individual 
52.13 	broker, who may be the primary broker, is responsible for supervising more than one 
52.14 	place of business, the primary broker shall, upon written request of the commissioner, 
52.15 	file a written statement specifying the procedures which have been established to ensure 
52.16 	that all salespersons and employees are adequately supervised. Designation of another 
52.17 	broker to supervise a place of business does not relieve the primary broker of the ultimate 
52.18 	responsibility for the actions of licensees.
52.19 	(b)  Preparation and safekeeping of documents.Brokers shall be A broker is
52.20 	responsible for the preparation, custody, safety, and accuracy of all real estate contracts, 
52.21 	documents, and records, even though another person may be assigned these duties by 
52.22 	the broker. 
52.23 	(c)  Documentation and resolution of complaints.Brokers A broker shall 
52.24 	investigate and attempt to resolve complaints made regarding the practices of any 
52.25 	individual licensed to them the broker and shall maintain, with respect to each individual 
52.26 	licensed to them the broker, a complaint file containing all material relating to any 
52.27 	complaints received in writing for a period of three years. 
52.28 	(d)  Disclosure of listed property information. A broker may allow any unlicensed 
52.29 	person, who is authorized by the broker, to disclose any factual information pertaining 
52.30 	to the properties listed with the broker, if the factual information is provided to the 
52.31 	unlicensed person in written form by the broker representing or assisting the seller(s). 

52.32 	Sec. 64. [82.52] ADVERTISING REQUIREMENTS.
52.33 	A licensee shall identify himself or herself as either a broker or an agent salesperson 
52.34 	in any advertising for the purchase, sale, lease, exchange, mortgaging, transfer, or other 
53.1 	disposition of real property, whether the advertising pertains to the licensee's own property 
53.2 	or the property of others.
53.3 	If a salesperson or broker is part of a team or group within the brokerage, the licensee 
53.4 	may include the team or group name in the advertising only under the following conditions:
53.5 	(1) the inclusion of the team or group name is authorized by the primary broker of 
53.6 	the brokerage to which the salesperson or broker is licensed; and
53.7 	(2) the real estate brokerage name is included and more prominently displayed than 
53.8 	the team or group name in the advertising.

53.9 	Sec. 65. [82.53] REAL ESTATE CLOSING AGENT LICENSING.
53.10 		Subdivision 1.Generally. The commissioner shall issue a license as a closing agent 
53.11 	to a person who qualifies for the license under the terms of this chapter.
53.12 		Subd. 2.Qualification of applicants. An applicant for a real estate closing agent 
53.13 	license must be at least 18 years of age at the time of making application for the license.
53.14 		Subd. 3.Application for license; contents. (a) An applicant for a real estate closing 
53.15 	agent license shall make an application in the format prescribed by the commissioner. The 
53.16 	application must be accompanied by the license fee required by this chapter.
53.17 	(b) An application for a real estate closing agent license must contain the information 
53.18 	required by the commissioner consistent with this chapter.
53.19 	(c) An application for a real estate closing agent license shall give the applicant's 
53.20 	legal name, age, residence address, and the name and place of business of the closing agent.
53.21 	(d) The commissioner may require further information the commissioner considers 
53.22 	appropriate to administer this chapter.
53.23 		Subd. 4.Instruction. An applicant for a real estate closing agent's license must 
53.24 	successfully complete a course of study relating to closing services consisting of eight 
53.25 	hours of instruction approved by the commissioner.
53.26 		Subd. 5.Change of application information. The commissioner must be notified 
53.27 	in the format prescribed by the commissioner of a change of information contained in the 
53.28 	license application on file with the commissioner within ten days of the change.
53.29 		Subd. 6.Exemption. The following persons, when acting as closing agents, are 
53.30 	exempt from the requirements of sections 82.41 and 82.50 unless otherwise required 
53.31 	in this chapter:
53.32 	(1) a direct employee of a title insurance company authorized to do business in this 
53.33 	state, or a direct employee of a title company, or a person who has an agency agreement 
53.34 	with a title insurance company or a title company in which the agent agrees to perform 
53.35 	closing services on the title insurance company's or title company's behalf and the title 
54.1 	insurance company or title company assumes responsibility for the actions of the agent as 
54.2 	if the agent were a direct employee of the title insurance company or title company;
54.3 	(2) a licensed attorney or a direct employee of a licensed attorney;
54.4 	(3) a licensed real estate broker or salesperson;
54.5 	(4) a direct employee of a licensed real estate broker if the broker maintains all funds 
54.6 	received in connection with the closing services in the broker's trust account;
54.7 	(5) a bank, trust company, savings association, credit union, industrial loan and thrift 
54.8 	company, regulated lender under chapter 56, public utility, or land mortgage or farm loan 
54.9 	association organized under the laws of this state or the United States, when engaged in 
54.10 	the transaction of businesses within the scope of its corporate powers as provided by law;
54.11 	(6) a title insurance company authorized to do business in this state; and
54.12 	(7) a title company that has a contractual agency relationship with a title insurance 
54.13 	company authorized to do business in this state, where the title insurance company 
54.14 	assumes responsibility for the actions of the title company and its employees or agents as 
54.15 	if they were employees or agents of the title insurance company.

54.16 	Sec. 66. [82.54] OTHER DISCLOSURE REQUIREMENTS.
54.17 		Subdivision 1.Agent of broker disclosure. A salesperson shall only conduct 
54.18 	business under the licensed name of and on behalf of the broker to whom the salesperson 
54.19 	is licensed. An individual broker shall only conduct business under the brokerage's 
54.20 	licensed name. A broker licensed to a business entity shall only conduct business under 
54.21 	the licensed business entity name. A licensee shall affirmatively disclose, before the 
54.22 	negotiation or consummation of any transaction, the licensed name of the brokerage under 
54.23 	whom the licensee is authorized to conduct business according to this section.
54.24 		Subd. 2.Financial interests or relative or business associate disclosure; 
54.25 	licensee. (a) Before the negotiation or consummation of any transaction, a licensee shall 
54.26 	affirmatively disclose to the owner of real property that the licensee is a real estate broker 
54.27 	or agent salesperson, and in what capacity the licensee is acting, if the licensee directly, or 
54.28 	indirectly through a third party, purchases for himself or herself or acquires, or intends to 
54.29 	acquire, any interest in, or any option to purchase, the owner's property.
54.30 	(b) When a principal in the transaction is a licensee or a relative or business associate 
54.31 	of the licensee, that fact must be disclosed in writing.
54.32 		Subd. 3.Material facts. (a) A licensee shall disclose to a prospective purchaser 
54.33 	all material facts of which the licensee is aware, which could adversely and significantly 
54.34 	affect an ordinary purchaser's use or enjoyment of the property, or any intended use of the 
54.35 	property of which the licensee is aware.
55.1 	(b) It is not a material fact relating to real property offered for sale the fact or 
55.2 	suspicion that the property:
55.3 	(1) is or was occupied by an owner or occupant who is or was suspected 
55.4 	to be infected with human immunodeficiency virus or diagnosed with acquired 
55.5 	immunodeficiency syndrome;
55.6 	(2) was the site of a suicide, accidental death, natural death, or perceived paranormal 
55.7 	activity; or
55.8 	(3) is located in a neighborhood containing any adult family home, community-based 
55.9 	residential facility, or nursing home.
55.10 	(c) A licensee or employee of the licensee has no duty to disclose information 
55.11 	regarding an offender who is required to register under section 243.166, or about whom 
55.12 	notification is made under that section, if the broker or salesperson, in a timely manner, 
55.13 	provides a written notice that information about the predatory offender registry and 
55.14 	persons registered with the registry may be obtained by contacting local law enforcement 
55.15 	where the property is located or the Department of Corrections.
55.16 	(d) A licensee or employee of the licensee has no duty to disclose information 
55.17 	regarding airport zoning regulations if the broker or salesperson, in a timely manner, 
55.18 	provides a written notice that a copy of the airport zoning regulations as adopted can be 
55.19 	reviewed or obtained at the office of the county recorder where the zoned area is located.
55.20 	(e) A licensee is not required to disclose, except as otherwise provided in paragraph 
55.21 	(f), information relating to the physical condition of the property or any other information 
55.22 	relating to the real estate transaction, if a written report that discloses the information has 
55.23 	been prepared by a qualified third party and provided to the person. For the purposes of 
55.24 	this paragraph, "qualified third party" means a federal, state, or local governmental agency, 
55.25 	or any person whom the broker, salesperson, or a party to the real estate transaction 
55.26 	reasonably believes has the expertise necessary to meet the industry standards of practice 
55.27 	for the type of inspection or investigation that has been conducted by the third party 
55.28 	in order to prepare the written report and who is acceptable to the person to whom the 
55.29 	disclosure is being made.
55.30 	(f) A licensee shall disclose to the parties to a real estate transaction any facts known 
55.31 	by the broker or salesperson that contradict any information included in a written report 
55.32 	described in paragraph (e), if a copy of the report is provided to the licensee.
55.33 	(g) The limitation on disclosures in paragraphs (b) and (c) shall modify any common 
55.34 	law duties with respect to disclosure of material facts.
55.35 		Subd. 4.Nonperformance of party. If a licensee is put on notice by a party to a 
55.36 	real estate transaction that the party will not perform according to the terms of a purchase 
56.1 	agreement or other similar written agreement to convey real estate, the licensee shall 
56.2 	immediately disclose the fact of that party's intent not to perform to the other party or 
56.3 	parties to the transaction. The licensee shall, if reasonably possible, inform the party who 
56.4 	will not perform of the licensee's obligation to disclose this fact to the other party or 
56.5 	parties to the transaction before making the disclosure. The obligation required by this 
56.6 	section does not apply to notice of a party's inability to keep or fulfill any contingency to 
56.7 	which the real estate transaction has been made subject.

56.8 	Sec. 67. Minnesota Statutes 2008, section 82B.05, as amended by Laws 2009, chapter 
56.9 	63, section 62, is amended to read:
56.10 	82B.05 REAL ESTATE APPRAISER ADVISORY BOARD.
56.11 		Subdivision 1.Members. The Real Estate Appraiser Advisory Board consists of 
56.12 	15 nine members appointed by the commissioner of commerce. Three of the members 
56.13 	must be public members, four must be consumers of appraisal services, of whom one 
56.14 	member must be employed in the financial lending industry, and eightsix must be real 
56.15 	estate appraisers who are currently licensed in good standing, of whom not less than two
56.16 	three members must be trainee real property appraisers, licensed real property appraisers, 
56.17 	or certified residential real property appraisers, not less than twoand three members must 
56.18 	be certified general real property appraisers, and not less than. At least one member of the 
56.19 	board must be certified by the Appraisal Qualification Board of the Appraisal Foundation 
56.20 	to teach the Uniform Standards of Professional Appraisal Practice. The board is governed 
56.21 	by section 15.0575.
56.22 		Subd. 3.Terms. The term of office for members is three years.
56.23 	Upon expiration of their terms, members of the board shall continue to hold office 
56.24 	until the appointment and qualification of their successors. No person may serve as a 
56.25 	member of the board for more than two consecutive terms. The commissioner may 
56.26 	remove a member for cause.
56.27 		Subd. 4.Practice of public members prohibited. The public members of the board 
56.28 	may not be engaged in the practice of real estate appraising.
56.29 		Subd. 5.Conduct of meetings. Places of regular board meetings must be decided 
56.30 	by the vote of members. Written notice must be given to each member of the time and 
56.31 	place of each meeting of the board at least ten days before the scheduled date of regular 
56.32 	board meetings. The board shall establish procedures for emergency board meetings and 
56.33 	other operational procedures, subject to the approval of the commissioner.
56.34 	The members of the board shall elect a chair to preside at board meetings, a 
56.35 	vice-chair, and a secretary from among the members to preside at board meetings.
57.1 	A quorum of the board is eightfive members.
57.2 	The board shall meet at least once every sixthree months as determined by a 
57.3 	majority vote of the members or a call of the commissioner.
57.4 		Subd. 6.Compensation. Each member of the board is entitled to a per diem 
57.5 	allowance of $35 for each meeting of the board at which the member is present and for each 
57.6 	day or substantial part of a day actually spent in the conduct of the business of the board, 
57.7 	plus all appropriate expenses unless a greater amount is authorized by section 15.0575.  

57.8 	EFFECTIVE DATE. This section is effective January 1, 2011.

57.9 	Sec. 68. Minnesota Statutes 2008, section 326.3382, subdivision 3, is amended to read:
57.10 		Subd. 3.Proof of insurance. (a) No license may be issued to a private detective 
57.11 	or protective agent applicant until the applicant has complied with the requirements in 
57.12 	this subdivision.
57.13 	(b) The applicant shall execute a surety bond to the state of Minnesota in the penal 
57.14 	sum of $10,000 and file it with the board. The surety bond must be executed by a 
57.15 	company authorized to do business in the state of Minnesota, must name the applicant as 
57.16 	principal, and must state that the applicant and each of the applicant's employees shall 
57.17 	faithfully observe all of the laws of Minnesota and of the United States and shall pay all 
57.18 	damages suffered by any person by reason of a violation of law by the applicant or by the 
57.19 	commission of any willful and malicious wrong by the applicant in the course of business.
57.20 	(c) The applicant shall furnish proof, acceptable to the board, of the applicant's 
57.21 	ability to respond in damages for liability on account of accidents or wrongdoings arising 
57.22 	out of the ownership and operation of a private detective or protective agent business. 
57.23 	Compliance with paragraph (d), (e), or (f) is satisfactory proof of financial responsibility 
57.24 	for purposes of this paragraph.
57.25 	(d) The applicant may file with the board a certificate of insurance demonstrating 
57.26 	coverage for general liability, completed operations, and personal injury. Personal injury 
57.27 	insurance must include coverage for:
57.28 	(1) false arrest, detention, imprisonment, and malicious prosecution;
57.29 	(2) libel, slander, defamation, and violation of rights of privacy; and
57.30 	(3) wrongful entry, eviction, and other invasion of rights of private occupancy.
57.31 	The certificate must provide that the insurance may not be modified or canceled 
57.32 	unless 30 days prior notice is given to the board. In the event of a policy cancellation, 
57.33 	the insurer will send notice to the board at the same time that a cancellation request is 
57.34 	received from or a notice is sent to the insured.
58.1 	(e) The applicant may file with the board an annual net worth statement, signed 
58.2 	by a licensed certified public accountant, evidencing that the applicant has a net worth 
58.3 	of at least the following:
58.4 	(1) for an applicant with no employees, $10,000;
58.5 	(2) for an applicant with one to ten employees, $15,000;
58.6 	(3) for an applicant with 11 to 25 employees, $25,000;
58.7 	(4) for an applicant with 26 to 50 employees, $50,000; or
58.8 	(5) for an applicant with 51 or more employees, $100,000.
58.9 	Data indicating with which of the above requirements an applicant must comply is 
58.10 	public data. The contents of the net worth statement are private data on individuals or 
58.11 	nonpublic data, as defined in section 13.02.  
58.12 	(f) The applicant may file with the board an irrevocable letter of credit from a 
58.13 	financial institution acceptable to the board in the amount listed in the appropriate 
58.14 	category in paragraph (e).

58.15 	Sec. 69. Minnesota Statutes 2008, section 326B.33, subdivision 16, is amended to read:
58.16 		Subd. 16.Insurance required. Each contractor shall have and maintain in effect 
58.17 	general liability insurance, which includes premises and operations insurance and products 
58.18 	and completed operations insurance, with limits of at least $100,000 per occurrence, 
58.19 	$300,000 aggregate limit for bodily injury, and property damage insurance with limits of 
58.20 	at least $50,000 or a policy with a single limit for bodily injury and property damage of 
58.21 	$300,000 per occurrence and $300,000 aggregate limits. Such insurance shall be written 
58.22 	by an insurer licensed to do business in the state of Minnesota and each contractor shall 
58.23 	maintain on file with the commissioner a certificate evidencing such insurance which 
58.24 	provides that such insurance shall not be canceled without the insurer first giving 15 
58.25 	days written notice to the commissioner of such cancellation. In the event of a policy 
58.26 	cancellation, the insurer shall send written notice to the commissioner at the same time 
58.27 	that a cancellation request is received from or a notice is sent to the insured.

58.28 	Sec. 70. Minnesota Statutes 2009 Supplement, section 326B.46, subdivision 2, is 
58.29 	amended to read:
58.30 		Subd. 2.Bond; insurance. Any person contracting to do plumbing work must give 
58.31 	bond to the state in the amount of at least $25,000 for (1) all plumbing work entered 
58.32 	into within the state or (2) all plumbing work and subsurface sewage treatment work 
58.33 	entered into within the state. If the bond is for both plumbing work and subsurface sewage 
58.34 	treatment work, the bond must comply with the requirements of this section and section 
59.1 	115.56, subdivision 2, paragraph (e). The bond shall be for the benefit of persons injured 
59.2 	or suffering financial loss by reason of failure to comply with the requirements of the 
59.3 	State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage 
59.4 	treatment work, financial loss by reason of failure to comply with the requirements of 
59.5 	sections 115.55 and 115.56. The bond shall be filed with the commissioner and shall be 
59.6 	written by a corporate surety licensed to do business in the state. 
59.7 	In addition, each applicant for a master plumber license or restricted master plumber 
59.8 	license, or renewal thereof, shall provide evidence of public liability insurance, including 
59.9 	products liability insurance with limits of at least $50,000 per person and $100,000 per 
59.10 	occurrence and property damage insurance with limits of at least $10,000. The insurance 
59.11 	shall be written by an insurer licensed to do business in the state of Minnesota and 
59.12 	each licensed master plumber shall maintain on file with the commissioner a certificate 
59.13 	evidencing the insurance providing that the insurance shall not be canceled without the 
59.14 	insurer first giving 15 days written notice to the commissioner. The term of the insurance 
59.15 	shall be concurrent with the term of the license. In the event of a policy cancellation, the 
59.16 	insurer shall send written notice to the commissioner at the same time that a cancellation 
59.17 	request is received from or a notice is sent to the insured.

59.18 	Sec. 71. Minnesota Statutes 2008, section 326B.56, subdivision 2, is amended to read:
59.19 		Subd. 2.Insurance. (a) Each applicant for a water conditioning contractor or 
59.20 	installer license or renewal thereof who is required by any political subdivision to 
59.21 	maintain insurance to obtain or maintain the license may comply with any political 
59.22 	subdivision's insurance requirement by maintaining the insurance described in paragraph 
59.23 	(b). No applicant for a water conditioning contractor or installer license who maintains the 
59.24 	insurance described in paragraph (b) shall be otherwise required to meet the insurance 
59.25 	requirements of any political subdivision.
59.26 	(b) The insurance shall provide coverage, including products liability coverage, 
59.27 	for all damages in connection with licensed work for which the licensee is liable, with 
59.28 	personal damage limits of at least $50,000 per person and $100,000 per occurrence and 
59.29 	property damage insurance with limits of at least $10,000. The insurance shall be written 
59.30 	by an insurer licensed to do business in this state and a certificate evidencing the insurance 
59.31 	shall be filed with the commissioner. The insurance must remain in effect at all times while 
59.32 	the application is pending and while the license is in effect. The insurance shall not be 
59.33 	canceled without the insurer first giving 15 days' written notice to the commissioner. In the 
59.34 	event of a policy cancellation, the insurer shall send written notice to the commissioner at 
59.35 	the same time that a cancellation request is received from or a notice is sent to the insured.

60.1 	Sec. 72. Minnesota Statutes 2008, section 326B.86, subdivision 2, is amended to read:
60.2 		Subd. 2.Insurance. Each licensee shall have and maintain in effect commercial 
60.3 	general liability insurance, which includes premises and operations insurance and products 
60.4 	and completed operations insurance, with limits of at least $100,000 per occurrence, 
60.5 	$300,000 aggregate limit for bodily injury, and property damage insurance with limits of 
60.6 	at least $25,000 or a policy with a single limit for bodily injury and property damage of 
60.7 	$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written by 
60.8 	an insurer licensed to do business in this state. Each licensee shall maintain on file with 
60.9 	the commissioner a certificate evidencing the insurance which provides that the insurance 
60.10 	shall not be canceled without the insurer first giving 15 days' written notice of cancellation 
60.11 	to the commissioner. In the event of a policy cancellation, the insurer shall send written 
60.12 	notice to the commissioner at the same time that a cancellation request is received from or 
60.13 	a notice is sent to the insured. The commissioner may increase the minimum amount of 
60.14 	insurance required for any licensee or class of licensees if the commissioner considers it to 
60.15 	be in the public interest and necessary to protect the interests of Minnesota consumers.

60.16 	Sec. 73. Minnesota Statutes 2008, section 326B.921, subdivision 6, is amended to read:
60.17 		Subd. 6.Insurance. In addition to the bond described in subdivision 5, each 
60.18 	applicant for a high pressure pipefitting business license or renewal shall have in force 
60.19 	public liability insurance, including products liability insurance, with limits of at least 
60.20 	$100,000 per person and $300,000 per occurrence and property damage insurance with 
60.21 	limits of at least $50,000.
60.22 	The insurance must be kept in force for the entire term of the high pressure 
60.23 	pipefitting business license, and the license shall be suspended by the department if at any 
60.24 	time the insurance is not in force.
60.25 	The insurance must be written by an insurer licensed to do business in the state and 
60.26 	shall be in lieu of any other insurance required by any subdivision of government for high 
60.27 	pressure pipefitting. Each person holding a high pressure pipefitting business license shall 
60.28 	maintain on file with the department a certificate evidencing the insurance. Any purported 
60.29 	cancellation of insurance shall not be effective without the insurer first giving 30 days' 
60.30 	written notice to the department. In the event of a policy cancellation, the insurer shall 
60.31 	send written notice to the commissioner at the same time that a cancellation request is 
60.32 	received from or a notice is sent to the insured.

60.33 	Sec. 74. Minnesota Statutes 2008, section 327B.04, subdivision 4, is amended to read:
61.1 		Subd. 4. License prerequisites. No application shall be granted nor license issued 
61.2 	until the applicant proves to the commissioner that: 
61.3 	(a) the applicant has a permanent, established place of business at each licensed 
61.4 	location. An "established place of business" means a permanent enclosed building other 
61.5 	than a residence, or a commercial office space, either owned by the applicant or leased by 
61.6 	the applicant for a term of at least one year, located in an area where zoning regulations 
61.7 	allow commercial activity, and where the books, records and files necessary to conduct 
61.8 	the business are kept and maintained. The owner of a licensed manufactured home park 
61.9 	who resides in or adjacent to the park may use the residence as the established place of 
61.10 	business required by this subdivision, unless prohibited by local zoning ordinance. 
61.11 	If a license is granted, the licensee may use unimproved lots and premises for sale, 
61.12 	storage, and display of manufactured homes, if the licensee first notifies the commissioner 
61.13 	in writing; 
61.14 	(b) if the applicant desires to sell, solicit or advertise the sale of new manufactured 
61.15 	homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor 
61.16 	of the new manufactured home it proposes to deal in; 
61.17 	(c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each 
61.18 	agency and each subagency location that bears the applicant's name and the name under 
61.19 	which the applicant will be licensed and do business in this state. Each bond is for the 
61.20 	protection of consumer customers, and must be executed by the applicant as principal and 
61.21 	issued by a surety company admitted to do business in this state. Each bond shall be 
61.22 	exclusively for the purpose of reimbursing consumer customers and shall be conditioned 
61.23 	upon the faithful compliance by the applicant with all of the laws and rules of this state 
61.24 	pertaining to the applicant's business as a dealer or manufacturer, including sections 
61.25 	325D.44, 325F.67 and 325F.69, and upon the applicant's faithful performance of all its 
61.26 	legal obligations to consumer customers; and (2) a certificate of liability insurance in 
61.27 	the amount of $1,000,000 that provides aggregate coverage for the agency and each 
61.28 	subagency location. In the event of a policy cancellation, the insurer shall send written 
61.29 	notice to the commissioner at the same time that a cancellation request is received from 
61.30 	or a notice is sent to the insured; 
61.31 	(d) the applicant has established a trust account as required by section 327B.08, 
61.32 	subdivision 3, unless the applicant states in writing its intention to limit its business to 
61.33 	selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and 
61.34 	(e) the applicant has provided evidence of having had at least two years' prior 
61.35 	experience in the sale of manufactured homes, working for a licensed dealer. 

62.1 	Sec. 75. Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to read:
62.2 		Subdivision 1.Insurance required. (a) No retail license may be issued, maintained 
62.3 	or renewed unless the applicant demonstrates proof of financial responsibility with regard 
62.4 	to liability imposed by section 340A.801. The issuing authority must submit to the 
62.5 	commissioner the applicant's proof of financial responsibility. This subdivision does not 
62.6 	prohibit a local unit of government from requiring higher insurance or bond coverages, or 
62.7 	a larger deposit of cash or securities. The minimum requirement for proof of financial 
62.8 	responsibility may be given by filing: 
62.9 	(1) a certificate that there is in effect for the license period an insurance policy 
62.10 	issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by 
62.11 	an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or 
62.12 	pool providing at least $50,000 of coverage because of bodily injury to any one person in 
62.13 	any one occurrence, $100,000 because of bodily injury to two or more persons in any one 
62.14 	occurrence, $10,000 because of injury to or destruction of property of others in any one 
62.15 	occurrence, $50,000 for loss of means of support of any one person in any one occurrence, 
62.16 	and $100,000 for loss of means of support of two or more persons in any one occurrence; 
62.17 	(2) a bond of a surety company with minimum coverages as provided in clause (1); or
62.18 	(3) a certificate of the commissioner of management and budget that the licensee 
62.19 	has deposited with the commissioner of management and budget $100,000 in cash or 
62.20 	securities which may legally be purchased by savings banks or for trust funds having a 
62.21 	market value of $100,000.
62.22 	(b) This subdivision does not prohibit an insurer from providing the coverage 
62.23 	required by this subdivision in combination with other insurance coverage.
62.24 	(c) An annual aggregate policy limit for dram shop insurance of not less than 
62.25 	$300,000 per policy year may be included in the policy provisions.
62.26 	(d) A liability insurance policy required by this section must provide that it may 
62.27 	not be canceled for:
62.28 	(1) any cause, except for nonpayment of premium, by either the insured or the 
62.29 	insurer unless the canceling party has first given 30 60 days' notice in writing to the 
62.30 	issuing authority insured of intent to cancel the policy; and
62.31 	(2) nonpayment of premium unless the canceling party has first given ten days' 
62.32 	notice in writing to the issuing authority insured of intent to cancel the policy.; and
62.33 	(3) in the event of a policy cancellation, the insurer will send notice to the issuing 
62.34 	authority at the same time that a cancellation request is received from or a notice is sent 
62.35 	to the insured.

63.1 	Sec. 76. 2011 APPOINTMENTS TO REAL ESTATE APPRAISER ADVISORY 
63.2 	BOARD.
 63.3 	The terms of all members of the Real Estate Appraiser Advisory Board expire the 
63.4 	effective date of this section. The commissioner of commerce shall, as soon as practicable 
63.5 	after this date, appoint members to an initial term of office as follows: three years for one 
63.6 	consumer of appraisal services member, one certified residential real property appraiser 
63.7 	member, and one certified general real property appraiser member; two years for one 
63.8 	consumer of appraisal services member, one certified residential real property appraiser 
63.9 	member, and one certified general real property appraiser member; and one year for one 
63.10 	consumer of appraisal services member, one certified residential real property appraiser 
63.11 	member, and one certified general real property appraiser member.
63.12 	Upon the expiration of the term of office established in this section, the successor 
63.13 	must be appointed pursuant to Minnesota Statutes, section 82B.05.
63.14 	All provisions of Minnesota Statutes, section 82B.05, not inconsistent with this 
63.15 	section apply to the initial board appointed pursuant to this section.

63.16 	EFFECTIVE DATE. This section is effective January 1, 2011.

63.17 	Sec. 77.  REPEALER.
 63.18 	Minnesota Statutes 2008, sections 82.19, subdivision 3; 82.22, subdivisions 1, 6, 
63.19 	7, 8, and 9; 82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3 and 7; 
63.20 	and 332.335, are repealed.
63.21 	Minnesota Statutes 2009 Supplement, section 65B.133, subdivision 3, is repealed.
63.22 	Minnesota Statutes 2008, section 72B.04, is repealed effective July 1, 2010.