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 
1.8 	of, and appointment authority to, the real estate appraiser advisory board; 
1.9 	regulating certain workers' compensation self-insurers; regulating mortgage 
1.10 	loan originators;amending Minnesota Statutes 2008, sections 45.0112; 58.04, 
1.11 	subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision 1; 58.11; 
1.12 	60A.031, subdivision 4; 60A.084; 60A.204; 60A.36, by adding a subdivision; 
1.13 	60K.31, subdivision 10; 61A.092, subdivision 3; 62A.046, subdivision 6, 
1.14 	by adding a subdivision; 62A.17, subdivision 5; 62A.65, subdivision 2; 
1.15 	62E.02, subdivision 15; 62E.14, subdivision 4c; 62L.05, subdivision 4; 
1.16 	62S.24, subdivision 8; 62S.266, subdivision 4; 62S.29, subdivision 1; 72A.08, 
1.17 	subdivision 1; 72A.20, subdivisions 10, 36, 37; 72A.492, subdivision 2; 72B.01; 
1.18 	72B.08, subdivision 8; 79A.03, subdivision 8; 79A.06, subdivision 5; 79A.21, 
1.19 	subdivision 3; 80A.41; 80A.46; 80A.65, subdivision 6; 82.17, subdivision 15, by 
1.20 	adding subdivisions; 82.19; 82.21, subdivision 2; 82.24, subdivision 3; 82.29, 
1.21 	subdivisions 4, 5, 8; 82.31, subdivisions 1, 2; 82.33, subdivisions 1, 2, by adding 
1.22 	a subdivision; 82.34, subdivisions 1, 2, 4, 5, 13; 82.39; 82.41, subdivisions 1, 2, 
1.23 	by adding a subdivision; 82.45, subdivision 3, by adding subdivisions; 82.48, 
1.24 	subdivisions 2, 3; 82B.05, as amended; 326.3382, subdivision 3; 326B.33, 
1.25 	subdivision 16; 326B.56, subdivision 2; 326B.86, subdivision 2; 326B.921, 
1.26 	subdivision 6; 327B.04, subdivision 4; 332.34; 340A.409, subdivision 1; 
1.27 	Minnesota Statutes 2009 Supplement, sections 45.027, subdivision 1; 45.30, 
1.28 	subdivision 4; 58.06, subdivision 2; 60A.39, subdivisions 1, 4, 5; 60A.9572, 
1.29 	subdivision 6; 62A.3099, subdivision 18; 65A.29, subdivision 13; 72B.03, 
1.30 	subdivision 2; 72B.045, subdivision 1; 72B.06; 82.31, subdivision 4; 82.32; 
1.31 	326B.46, subdivision 2; Laws 2007, chapter 147, article 12, section 14; proposing 
1.32 	coding for new law in Minnesota Statutes, chapters 82; 332; proposing coding 
1.33 	for new law as Minnesota Statutes, chapter 58A; repealing Minnesota Statutes 
1.34 	2008, sections 72B.04; 82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, 8, 9; 
1.35 	82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3, 7; 332.31, 
1.36 	subdivision 7; 332.335; Minnesota Statutes 2009 Supplement, sections 58.126; 
1.37 	65B.133, subdivision 3; 72B.02, subdivision 11.
1.38 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	MISCELLANEOUS COMMERCE PROVISIONS

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

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

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

3.32 	Sec. 4. Minnesota Statutes 2008, section 60A.031, subdivision 4, is amended to read:
3.33 		Subd. 4.Examination report; foreign and domestic companies. (a) The 
3.34 	commissioner shall make a full and true report of every examination conducted pursuant 
4.1 	to this chapter, which shall include (1) a statement of findings of fact relating to the 
4.2 	financial status and other matters ascertained from the books, papers, records, documents, 
4.3 	and other evidence obtained by investigation and examination or ascertained from 
4.4 	the testimony of officers, agents, or other persons examined under oath concerning the 
4.5 	business, affairs, assets, obligations, ability to fulfill obligations, and compliance with 
4.6 	all the provisions of the law of the company, applicant, organization, or person subject 
4.7 	to this chapter and (2) a summary of important points noted in the report, conclusions, 
4.8 	recommendations and suggestions as may reasonably be warranted from the facts so 
4.9 	ascertained in the examinations. The report of examination shall be verified by the oath 
4.10 	of the examiner in charge thereof, and shall be prima facie evidence in any action or 
4.11 	proceedings in the name of the state against the company, applicant, organization, or 
4.12 	person upon the facts stated therein.
4.13 	(b) No later than 60 days following completion of the examination, the examiner 
4.14 	in charge shall file with the department a verified written report of examination under 
4.15 	oath. Upon receipt of the verified report, the department shall transmit the report to the 
4.16 	company examined, together with a notice which provides the company examined with a 
4.17 	reasonable opportunity of not more than 30 days to make a written submission or rebuttal 
4.18 	with respect to matters contained in the examination report.
4.19 	(c) Within 30 days of the end of the period allowed for the receipt of written 
4.20 	submissions or rebuttals, the commissioner shall fully consider and review the report, 
4.21 	together with the written submissions or rebuttals and the relevant portions of the 
4.22 	examiner's workpapers and enter an order:
4.23 	(1) adopting the examination report as filed or with modification or corrections. If 
4.24 	the examination report reveals that the company is operating in violation of any law, rule, 
4.25 	or prior order of the commissioner, the commissioner may order the company to take any 
4.26 	action the commissioner considers necessary and appropriate to cure the violation;
4.27 	(2) rejecting the examination report with directions to the examiners to reopen the 
4.28 	examination for purposes of obtaining additional data, documentation, or information, 
4.29 	and refiling the report as required under paragraph (b); or
4.30 	(3) calling for an investigatory hearing with no less than 20 days' notice to the 
4.31 	company for purposes of obtaining additional documentation, data, information, and 
4.32 	testimony.
4.33 	(d)(1) All orders entered under paragraph (c), clause (1), must be accompanied by 
4.34 	findings and conclusions resulting from the commissioner's consideration and review of 
4.35 	the examination report, relevant examiner workpapers, and any written submissions or 
4.36 	rebuttals. The order is a final administrative decision and may be appealed as provided 
5.1 	under chapter 14. The order must be served upon the company by certified mail, together 
5.2 	with a copy of the adopted examination report. Within 30 days of the issuance of the 
5.3 	adopted report, the company shall file affidavits executed by each of its directors stating 
5.4 	under oath that they have received a copy of the adopted report and related orders.
5.5 	(2) A hearing conducted under paragraph (c), clause (3), by the commissioner or 
5.6 	authorized representative, must be conducted as a nonadversarial confidential investigatory 
5.7 	proceeding as necessary for the resolution of inconsistencies, discrepancies, or disputed 
5.8 	issues apparent upon the face of the filed examination report or raised by or as a result of 
5.9 	the commissioner's review of relevant workpapers or by the written submission or rebuttal 
5.10 	of the company. Within 20 days of the conclusion of the hearing, the commissioner shall 
5.11 	enter an order as required under paragraph (c), clause (1).
5.12 	(3) The commissioner shall not appoint an examiner as an authorized representative 
5.13 	to conduct the hearing. The hearing must proceed expeditiously. Discovery by the 
5.14 	company is limited to the examiner's workpapers which tend to substantiate assertions in a 
5.15 	written submission or rebuttal. The commissioner or the commissioner's representative 
5.16 	may issue subpoenas for the attendance of witnesses or the production of documents 
5.17 	considered relevant to the investigation whether under the control of the department, the 
5.18 	company, or other persons. The documents produced must be included in the record. 
5.19 	Testimony taken by the commissioner or the commissioner's representative must be under 
5.20 	oath and preserved for the record.
5.21 	This section does not require the department to disclose information or records 
5.22 	which would indicate or show the existence or content of an investigation or activity of a 
5.23 	criminal justice agency.
5.24 	(4) The hearing must proceed with the commissioner or the commissioner's 
5.25 	representative posing questions to the persons subpoenaed. Thereafter, the company and 
5.26 	the department may present testimony relevant to the investigation. Cross-examination 
5.27 	may be conducted only by the commissioner or the commissioner's representative. The 
5.28 	company and the department shall be permitted to make closing statements and may 
5.29 	be represented by counsel of their choice.
5.30 	(e)(1) Upon the adoption of the examination report under paragraph (c), clause (1), 
5.31 	the commissioner shall continue to hold the content of the examination report as private 
5.32 	and confidential information for a period of 30 days except as otherwise provided in 
5.33 	paragraph (b). Thereafter, the commissioner may open the report for public inspection if a 
5.34 	court of competent jurisdiction has not stayed its publication.
5.35 	(2) Nothing contained in this subdivision prevents or shall be construed as 
5.36 	prohibiting the commissioner from disclosing the content of an examination report, 
6.1 	preliminary examination report or results, or any matter relating to the reports, to the 
6.2 	Commerce Department or the insurance department of another state or country, or to law 
6.3 	enforcement officials of this or another state or agency of the federal government at any 
6.4 	time, if the agency or office receiving the report or matters relating to the report agrees in 
6.5 	writing to hold it confidential and in a manner consistent with this subdivision.
6.6 	(3) If the commissioner determines that regulatory action is appropriate as a result of 
6.7 	an examination, the commissioner may initiate proceedings or actions as provided by law.
6.8 	(f) All working papers, recorded information, documents and copies thereof 
6.9 	produced by, obtained by, or disclosed to the commissioner or any other person in the 
6.10 	course of an examination made under this subdivision, or in the course of market analysis, 
6.11 	 must be given confidential treatment and are not subject to subpoena and may not be made 
6.12 	public by the commissioner or any other person, except to the extent provided in paragraph 
6.13 	(e). Access may also be granted to the National Association of Insurance Commissioners
6.14 	(NAIC), the National Association of Securities Dealers Financial Industry Regulatory 
6.15 	Authority, and any national securities association registered under the Securities Exchange 
6.16 	Act of 1934. The parties must agree in writing prior to receiving the information to 
6.17 	provide to it the same confidential treatment as required by this section, unless the prior 
6.18 	written consent of the company to which it pertains has been obtained. For purposes of 
6.19 	this section, "market analysis" means a process whereby market conduct surveillance 
6.20 	personnel collect and analyze information from filed schedules, surveys, required reports, 
6.21 	such as the NAIC Market Conduct Annual Statement, or other sources in order to develop 
6.22 	a baseline profile of an insurer, review the operation or activity of an insurer, or to 
6.23 	identify patterns or practices of insurers licensed to do business in this state that deviate 
6.24 	significantly from the norm or that may pose a potential risk to the insurance consumer.

6.25 	Sec. 5. Minnesota Statutes 2008, section 60A.084, is amended to read:
6.26 	60A.084 NOTIFICATION ON GROUP POLICIES.
6.27 	An employer providing life or health benefits may not change benefits, limit 
6.28 	coverage, or otherwise restrict participation until the certificate holder or enrollee has 
6.29 	been notified of any changes, limitations, or restrictions. Notice in a format which 
6.30 	meets the requirements of the Employee Retirement Income Security Act, United States 
6.31 	Code Annotated, title 29, sections 1001 to 1461,United States Department of Labor is 
6.32 	satisfactory for compliance with this section.

6.33 	Sec. 6. Minnesota Statutes 2008, section 60A.204, is amended to read:
6.34 	60A.204 ADDITIONAL CHARGES AND FEES AND COMMISSIONS.
7.1 		Subdivision 1.Placement fees. A surplus lines licensee may charge, in addition to 
7.2 	the premium charged by an eligible or ineligible surplus lines insurer, a fee to cover the 
7.3 	cost incurred in the placement of the policy which exceeds $25, but only to the extent that 
7.4 	the actual additional cost incurred for services performed by persons or entities unrelated 
7.5 	to the licensee exceeds that amount.
7.6 		Subd. 2.Regulation of fees. A surplus lines licensee may charge a fee charged 
7.7 	pursuant to subdivision 1 shall and commission, in addition to the premium, that is not be
7.8 	excessive or discriminatory. The licensee shall maintain complete documentation of all 
7.9 	fees and commissions charged. Those fees shall not be included as part of the premium for 
7.10 	purposes of the computation of the premium taxes.
7.11 		Subd. 3.Commission charges. Notwithstanding the provisions of subdivision 1, a 
7.12 	licensee may add a commission charge if the insurer quotes a rate net of commission and 
7.13 	the commission is not excessive or discriminatory.

7.14 	Sec. 7. Minnesota Statutes 2008, section 60A.36, is amended by adding a subdivision 
7.15 	to read:
7.16 		Subd. 2a.Third-party notices. An insurer shall provide notice to a third party if:
7.17 	(1) the policyholder has, separately from the certificate, notified the insurer of the 
7.18 	identity of the third party; and
7.19 	(2) the third party is a licensing authority authorized by statute to receive the notice or 
7.20 	a state, city, or county governmental unit on whose behalf the insured is providing services.

7.21 	Sec. 8. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 1, is 
7.22 	amended to read:
7.23 		Subdivision 1.Issuance. A licensed insurer or insurance producer may provide to a 
7.24 	third party a certificate of insurance which documents insurance coverage. The purpose of
7.25 	For the purposes of this chapter, a certificate of insurance is to provide a document that 
7.26 	provides evidence of property or liability insurance coverage and the amount of insurance 
7.27 	issued, and does not convey any contractual rights to the certificate holder.

7.28 	Sec. 9. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 4, is 
7.29 	amended to read:
7.30 		Subd. 4.Cancellation notice. A certificate provided to a third party must not 
7.31 	provide for notice of cancellation that exceeds the statutory notice of cancellation provided 
7.32 	to the policyholder or a period of notice specified in the policy.

8.1 	Sec. 10. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 5, is 
8.2 	amended to read:
8.3 		Subd. 5.Filing. An insurer not using the standard ACORD or ISO form "Certificate 
8.4 	of Insurance" shall file with the commissioner, prior to its use, the form of certificate or 
8.5 	memorandum of insurance coverage that will be used a similar alternative "Certificate 
8.6 	of Insurance" covering the same information for use by the insurer. Filed forms may not 
8.7 	be amended at the request of a third party.

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

8.9 	Sec. 11. Minnesota Statutes 2009 Supplement, section 60A.9572, subdivision 6, 
8.10 	is amended to read:
8.11 		Subd. 6.Disclosures. The applicant shall provide information on forms required 
8.12 	by the commissioner. The commissioner shall have authority, at any time, to require 
8.13 	the applicant to fully disclose the identity of all stockholders who hold more than ten 
8.14 	percent of the shares of the company, partners, officers, members, and employees, and 
8.15 	the commissioner may, in the exercise of the commissioner's discretion, refuse to issue a 
8.16 	license in the name of a legal entity if not satisfied that any officer, employee, stockholder, 
8.17 	partner, or member of the legal entity who may materially influence the applicant's 
8.18 	conduct meets the standards of sections 60A.957 to 60A.9585.

8.19 	Sec. 12. Minnesota Statutes 2008, section 60K.31, subdivision 10, is amended to read:
8.20 		Subd. 10.Limited lines insurance. "Limited lines insurance" means those lines 
8.21 	of insurance defined in section 60K.38, subdivision 1, paragraph (c), or any other line of 
8.22 	insurance that the commissioner considers necessary to recognize for the purposes of 
8.23 	complying with section 60K.39, subdivision 5 6.  

8.24 	Sec. 13. Minnesota Statutes 2008, section 61A.092, subdivision 3, is amended to read:
8.25 		Subd. 3.Notice of options. Upon termination of or layoff from employment 
8.26 	of a covered employee, the employer shall inform the employee within 14 days after 
8.27 	termination or layoff of:
8.28 	(1) the employee's right to elect to continue the coverage;
8.29 	(2) the amount the employee must pay monthly to the employer to retain the 
8.30 	coverage;
8.31 	(3) the manner in which and the office of the employer to which the payment to 
8.32 	the employer must be made; and
8.33 	(4) the time by which the payments to the employer must be made to retain coverage.
9.1 	The employee has 60 days within which to elect coverage. The 60-day period shall 
9.2 	begin to run on the date coverage would otherwise terminate or on the date upon which 
9.3 	notice of the right to coverage is received, whichever is later.
9.4 	If the covered employee or covered dependent dies during the 60-day election period 
9.5 	and before the covered employee makes an election to continue or reject continuation, 
9.6 	then the covered employee will be considered to have elected continuation of coverage. 
9.7 	The beneficiary previously selected by the former employee or covered dependent would 
9.8 	then be entitled to a death benefit equal to the amount of insurance that could have been 
9.9 	continued less any unpaid premium owing as of the date of death.
9.10 	Notice must be in writing and sent by first class mail to the employee's last known 
9.11 	address which the employee has provided to the employer.
9.12 	A notice in substantially the following form is sufficient: "As a terminated or laid 
9.13 	off employee, the law authorizes you to maintain your group insurance benefits, in an 
9.14 	amount equal to the amount of insurance in effect on the date you terminated or were laid 
9.15 	off from employment, for a period of up to 18 months. To do so, you must notify your 
9.16 	former employer within 60 days of your receipt of this notice that you intend to retain this 
9.17 	coverage and must make a monthly payment of $............ at ............. by the ............. of 
9.18 	each month."

9.19 	Sec. 14. Minnesota Statutes 2008, section 62A.046, subdivision 6, is amended to read:
9.20 		Subd. 6.Coordination of benefits. Insurers, vendors of risk management 
9.21 	services, nonprofit health service plan corporations, fraternals, and health maintenance 
9.22 	organizations may coordinate benefits to prohibit greater than 100 percent coverage when 
9.23 	an insured, subscriber, or enrollee is covered by both an individual and a group contract 
9.24 	providing coverage for hospital and medical treatment or expenses. Benefits coordinated 
9.25 	under this paragraph must provide for 100 percent coverage of an insured, subscriber, 
9.26 	or enrollee. To the extent appropriate, all coordination of benefits provisions currently 
9.27 	applicable by law or rule to insurers, vendors of risk management services, nonprofit 
9.28 	health service plan corporations, fraternals, and health maintenance organizations, shall 
9.29 	apply to coordination of benefits between individual and group contracts, except that the 
9.30 	group contract shall always be the primary plan.  Notwithstanding the definition of "plan" 
9.31 	in Minnesota Rules, part 2742.0200, subpart 2, and in Minnesota Rules, part 4685.0910, 
9.32 	subpart 7, an individual contract must coordinate benefits with a group contract under this 
9.33 	subdivision consistent with applicable coordination of benefit rules. When a covered 
9.34 	person's other coverage is Medicare or TRICARE, a health plan company must determine 
9.35 	primacy and coordinate benefits in accordance with the Medicare Secondary Payor or 
10.1 	TRICARE provisions of federal law. This paragraph does not apply to specified accident, 
10.2 	hospital indemnity, specified disease, or other limited benefit insurance policies.

10.3 	Sec. 15. Minnesota Statutes 2008, section 62A.046, is amended by adding a 
10.4 	subdivision to read:
10.5 		Subd. 7.High-deductible health plans. If a health carrier is advised by a covered 
10.6 	person that all health plans covering the person are high-deductible health plans and 
10.7 	the person intends to contribute to a health savings account established in accordance 
10.8 	with section 223 of the Internal Revenue Code of 1986, the primary high-deductible 
10.9 	health plan's deductible is not an allowable expense, except for any health care expense 
10.10 	incurred that may not be subject to the deductible as described in section 223(c)(2)(C) of 
10.11 	the Internal Revenue Code of 1986.

10.12 	Sec. 16. Minnesota Statutes 2008, section 62A.17, subdivision 5, is amended to read:
10.13 		Subd. 5.Notice of options. Upon the termination of or lay off from employment of 
10.14 	an eligible employee, the employer shall inform the employee within ten14 days after 
10.15 	termination or lay off of:
10.16 	(a) (1) the right to elect to continue the coverage;
10.17 	(b) (2) the amount the employee must pay monthly to the employer to retain the 
10.18 	coverage;
10.19 	(c) (3) the manner in which and the office of the employer to which the payment to 
10.20 	the employer must be made; and
10.21 	(d) (4) the time by which the payments to the employer must be made to retain 
10.22 	coverage.
10.23 	If the policy, contract, or health care plan is administered by a trust, the employer is 
10.24 	relieved of the obligation imposed by clauses (a) (1) to (d) (4). The trust shall inform the 
10.25 	employee of the information required by clauses (a) (1) to (d) (4).
10.26 	The employee shall have 60 days within which to elect coverage. The 60-day period 
10.27 	shall begin to run on the date plan coverage would otherwise terminate or on the date upon 
10.28 	which notice of the right to coverage is received, whichever is later.
10.29 	Notice must be in writing and sent by first class mail to the employee's last known 
10.30 	address which the employee has provided the employer or trust.
10.31 	A notice in substantially the following form shall be sufficient: "As a terminated or 
10.32 	laid off employee, the law authorizes you to maintain your group medical insurance for 
10.33 	a period of up to 18 months. To do so you must notify your former employer within 60 
11.1 	days of your receipt of this notice that you intend to retain this coverage and must make a 
11.2 	monthly payment of $.......... to ........... at .......... by the ............... of each month."

11.3 	Sec. 17. Minnesota Statutes 2009 Supplement, section 62A.3099, subdivision 18, 
11.4 	is amended to read:
11.5 		Subd. 18.Medicare supplement policy or certificate. "Medicare supplement 
11.6 	policy or certificate" means a group or individual policy of accident and sickness insurance 
11.7 	or a subscriber contract of hospital and medical service associations or health maintenance 
11.8 	organizations, other than those policies or certificates covered by section 1833 of the 
11.9 	federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued 
11.10 	policy under a demonstration project specified under amendments to the federal Social 
11.11 	Security Act, which is advertised, marketed, or designed primarily as a supplement to 
11.12 	reimbursements under Medicare for the hospital, medical, or surgical expenses of persons 
11.13 	eligible for Medicare or as a supplement to Medicare Advantage plans established under 
11.14 	Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage 
11.15 	plans established under Medicare Part C, outpatient prescription drug plans established 
11.16 	under Medicare Part D, or any health care prepayment plan that provides benefits under an 
11.17 	agreement under section 1833(a)(1)(A) of the Social Security Act, or any policy issued to 
11.18 	an employer or employers or to the trustee of a fund established by an employer where 
11.19 	only employees or retirees, and dependents of employees or retirees, are eligible for 
11.20 	coverage, or any policy issued to a labor union or similar employee organization.

11.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.22 	Sec. 18. Minnesota Statutes 2008, section 62A.65, subdivision 2, is amended to read:
11.23 		Subd. 2.Guaranteed renewal. No individual health plan may be offered, sold, 
11.24 	issued, or renewed to a Minnesota resident unless the health plan provides that the plan 
11.25 	is guaranteed renewable at a premium rate that does not take into account the claims 
11.26 	experience or any change in the health status of any covered person that occurred after 
11.27 	the initial issuance of the health plan to the person. The premium rate upon renewal 
11.28 	must also otherwise comply with this section. A health carrier must not refuse to renew 
11.29 	an individual health plan prior to enrollment in Medicare Parts A and B, except for 
11.30 	nonpayment of premiums, fraud, or misrepresentation.

11.31 	Sec. 19. Minnesota Statutes 2008, section 62E.02, subdivision 15, is amended to read:
11.32 		Subd. 15.Medicare. "Medicare" means part A and part B of the United States 
11.33 	Social Security Act, title XVIII, as amended, United States Code, title 42, sections 1394, et 
12.1 	seq. the Health Insurance for the Aged Act, title XVIII of the Social Security Amendments 
12.2 	of 1965, United States Code, title 42, sections 1395 to 1395hhh, as amended, or title I, 
12.3 	part I, of Public Law 89-97, as amended.

12.4 	Sec. 20. Minnesota Statutes 2008, section 62E.14, subdivision 4c, is amended to read:
12.5 		Subd. 4c.Waiver of preexisting conditions for persons whose coverage is 
12.6 	terminated or who exceed the maximum lifetime benefit. (a) A Minnesota resident 
12.7 	may enroll in the comprehensive health plan with a waiver of the preexisting condition 
12.8 	limitation described in subdivision 3 if that persons's application for coverage is received 
12.9 	by the writing carrier no later than 90 days after termination of prior coverage and if the 
12.10 	termination is for reasons other than fraud or nonpayment of premiums.
12.11 	For purposes of this paragraph, termination of prior coverage includes exceeding the 
12.12 	maximum lifetime benefit of existing coverage.
12.13 	Coverage in the comprehensive health plan is effective on the date of termination 
12.14 	of prior coverage. The availability of conversion rights does not affect a person's rights 
12.15 	under this paragraph.
12.16 	This section does not apply to prior coverage provided under policies designed 
12.17 	primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense 
12.18 	incurred basis, or policies providing only accident coverage.
12.19 	(b) An eligible individual, as defined under the Health Insurance Portability and 
12.20 	Accountability Act (HIPAA), United States Code, chapter 42, section 300gg-41(b) may 
12.21 	enroll in the comprehensive health insurance plan with a waiver of the preexisting 
12.22 	condition limitation described in subdivision 3 and a waiver of the evidence of rejection or 
12.23 	similar events described in subdivision 1, clause (c). The eligible individual must apply 
12.24 	for enrollment under this paragraph by submitting a substantially complete application 
12.25 	that is received by the writing carrier no later than 63 days after termination of prior 
12.26 	coverage, and coverage under the comprehensive health insurance plan is effective as 
12.27 	of the date of receipt of the complete application. The six-month durational residency 
12.28 	requirement provided in section 62E.02, subdivision 13, does not apply with respect to 
12.29 	eligibility for enrollment under this paragraph, but the applicant must be a Minnesota 
12.30 	resident as of the date that the application was received by the writing carrier. A person's 
12.31 	eligibility to enroll under this paragraph does not affect the person's eligibility to enroll 
12.32 	under any other provision.  
12.33 	(c) A qualifying individual, as defined in the Internal Revenue Code of 1986, section 
12.34 	35(e)(2)(B), who is eligible under the Federal Trade Act of 2002 for the credit Health 
12.35 	Coverage Tax Credit (HCTC) for health insurance costs under the Internal Revenue Code 
13.1 	of 1986, section 35, may enroll in the comprehensive health insurance plan with a waiver 
13.2 	of the preexisting condition limitation described in subdivision 3, and without presenting 
13.3 	evidence of rejection or similar requirements described in subdivision 1, paragraph (c). 
13.4 	The six-month durational residency requirement provided in section 62E.02, subdivision 
13.5 	13, does not apply with respect to eligibility for enrollment under this paragraph, but the 
13.6 	applicant must be a Minnesota resident as of the date of application. A person's eligibility 
13.7 	to enroll under this paragraph does not affect the person's eligibility to enroll under any 
13.8 	other provision. This paragraph is intended solely to meet the minimum requirements 
13.9 	necessary to qualify the comprehensive health insurance plan as qualified health coverage 
13.10 	under the Internal Revenue Code of 1986, section 35(e)(2).  

13.11 	Sec. 21. Minnesota Statutes 2008, section 62L.05, subdivision 4, is amended to read:
13.12 		Subd. 4.Benefits. The medical services and supplies listed in this subdivision are 
13.13 	the benefits that must be covered by the small employer plans described in subdivisions 
13.14 	2 and 3. Benefits under this subdivision may be provided through the managed care 
13.15 	procedures practiced by health carriers:
13.16 	(1) inpatient and outpatient hospital services, excluding services provided for the 
13.17 	diagnosis, care, or treatment of chemical dependency or a mental illness or condition, 
13.18 	other than those conditions specified in clauses (10), and (11), and (12). The health 
13.19 	care services required to be covered under this clause must also be covered if rendered 
13.20 	in a nonhospital environment, on the same basis as coverage provided for those same 
13.21 	treatments or services if rendered in a hospital, provided, however, that this sentence must 
13.22 	not be interpreted as expanding the types or extent of services covered;
13.23 	(2) physician, chiropractor, and nurse practitioner services for the diagnosis or 
13.24 	treatment of illnesses, injuries, or conditions;
13.25 	(3) diagnostic x-rays and laboratory tests;
13.26 	(4) ground transportation provided by a licensed ambulance service to the nearest 
13.27 	facility qualified to treat the condition, or as otherwise required by the health carrier;
13.28 	(5) services of a home health agency if the services qualify as reimbursable services 
13.29 	under Medicare;
13.30 	(6) services of a private duty registered nurse if medically necessary, as determined 
13.31 	by the health carrier;
13.32 	(7) the rental or purchase, as appropriate, of durable medical equipment, other than 
13.33 	eyeglasses and hearing aids, unless coverage is required under section 62Q.675; 
13.34 	(8) child health supervision services up to age 18, as defined in section 62A.047; 
13.35 	(9) maternity and prenatal care services, as defined in sections 62A.041 and 62A.047; 
14.1 	(10) inpatient hospital and outpatient services for the diagnosis and treatment of 
14.2 	certain mental illnesses or conditions, as defined by the International Classification of 
14.3 	Diseases-Clinical Modification (ICD-9-CM), seventh edition (1990) and as classified 
14.4 	as ICD-9 codes 295 to 299; and
14.5 	(11) ten hours per year of outpatient mental health diagnosis or treatment for 
14.6 	illnesses or conditions not described in clause (10);
14.7 	(12) 60 hours per year of outpatient treatment of chemical dependency; and
14.8 	(13)(11) 50 percent of eligible charges for prescription drugs, up to a separate 
14.9 	annual maximum out-of-pocket expense of $1,000 per individual for prescription drugs, 
14.10 	and 100 percent of eligible charges thereafter.

14.11 	Sec. 22. Minnesota Statutes 2008, section 62S.24, subdivision 8, is amended to read:
14.12 		Subd. 8.Exchange for long-term care partnership policy; addition of policy 
14.13 	rider. (a) If authorized by federal law  or a federal waiver is granted With respect to the 
14.14 	long-term care partnership program referenced in section 256B.0571, issuers of long-term 
14.15 	care policies may voluntarily exchange a current long-term care insurance policy for a 
14.16 	long-term care partnership policy that meets the requirements of Public Law 109-171, 
14.17 	section 6021, after the effective date of the state plan amendment implementing the 
14.18 	partnership program in this state. The exchange may be in the form of: (1) an amendment 
14.19 	or rider; or (2) a disclosure statement indicating that the coverage is now partnership 
14.20 	qualified.
14.21 	(b) If authorized by federal law  or a federal waiver is granted With respect to the 
14.22 	long-term care partnership program referenced in section 256B.0571, allowingto allow an 
14.23 	existing long-term care insurance policy to qualify as a partnership policy by addition of a 
14.24 	policy rider or amendment or disclosure statement, the issuer of the policy is authorized to 
14.25 	add the rider or amendment or disclosure statement to the policy after the effective date of 
14.26 	the state plan amendment implementing the partnership program in this state.
14.27 	(c) The commissioner, in cooperation with the commissioner of human services, 
14.28 	shall pursue any federal law changes or waivers necessary to allow the implementation 
14.29 	of paragraphs (a) and (b).

14.30 	Sec. 23. Minnesota Statutes 2008, section 62S.266, subdivision 4, is amended to read:
14.31 		Subd. 4.Contingent benefit upon lapse. (a) After rejection of the offer required 
14.32 	under subdivision 2, for individual and group policies without nonforfeiture benefits 
14.33 	issued after July 1, 2001, the insurer shall provide a contingent benefit upon lapse.
15.1 	(b) If a group policyholder elects to make the nonforfeiture benefit an option to 
15.2 	the certificate holder, a certificate shall provide either the nonforfeiture benefit or the 
15.3 	contingent benefit upon lapse.
15.4 	(c) The contingent benefit on lapse must be triggered every time an insurer increases 
15.5 	the premium rates to a level which results in a cumulative increase of the annual premium 
15.6 	equal to or exceeding the percentage of the insured's initial annual premium based on 
15.7 	the insured's issue age provided in this paragraph, and the policy or certificate lapses 
15.8 	within 120 days of the due date of the premium increase. Unless otherwise required, 
15.9 	policyholders shall be notified at least 30 days prior to the due date of the premium 
15.10 	reflecting the rate increase.

15.11	Triggers for a Substantial Premium Increase
	
15.12
15.13		Issue Age
		Percent Increase Over
Initial Premium
	
15.14		29 and Under
		200
		
15.15		30-34
		190
		
15.16		35-39
		170
		
15.17		40-44
		150
		
15.18		45-49
		130
		
15.19		50-54
		110
		
15.20		55-59
		90
		
15.21		60
		70
		
15.22		61
		66
		
15.23		62
		62
		
15.24		63
		58
		
15.25		64
		54
		
15.26		65
		50
		
15.27		66
		48
		
15.28		67
		46
		
15.29		68
		44
		
15.30		69
		42
		
15.31		70
		40
		
15.32		71
		38
		
15.33		72
		36
		
15.34		73
		34
		
15.35		74
		32
		
15.36		75
		30
		
15.37		76
		28
		
15.38		77
		26
		
15.39		78
		24
		
15.40		79
		22
		
15.41		80
		20
		
15.42		81
		19
		
16.1		82
		18
		
16.2		83
		17
		
16.3		84
		16
		
16.4		85
		15
		
16.5		86
		14
		
16.6		87
		13
		
16.7		88
		12
		
16.8		89
		11
		
16.9		90 and over
		10
		
16.10 	(d) A contingent benefit on lapse must also be triggered for policies with a fixed 
16.11 	or limited premium paying period every time an insurer increases the premium rates to a 
16.12 	level that results in a cumulative increase of the annual premium equal to or exceeding the 
16.13 	percentage of the insured's initial annual premium set forth below based on the insured's 
16.14 	issue age, the policy or certificate lapses within 120 days of the due date of the premium 
16.15 	so increased, and the ratio in paragraph (e) (f), clause (2), is 40 percent or more. Unless 
16.16 	otherwise required, policyholders shall be notified at least 30 days prior to the due date of 
16.17 	the premium reflecting the rate increase.

16.18	Triggers for a Substantial Premium Increase
	
16.19	Issue Age
	Percent Increase Over Initial Premium
	
16.20	Under 65
	50%
	
16.21	65-80
	30%
	
16.22	Over 80
	10%
	
16.23 	This provision shall be in addition to the contingent benefit provided by paragraph 
16.24 	(c) and where both are triggered, the benefit provided must be at the option of the insured.
16.25 	(e) On or before the effective date of a substantial premium increase as defined in 
16.26 	paragraph (c), the insurer shall:
16.27 	(1) offer to reduce policy benefits provided by the current coverage without the 
16.28 	requirement of additional underwriting so that required premium payments are not 
16.29 	increased;
16.30 	(2) offer to convert the coverage to a paid-up status with a shortened benefit period 
16.31 	according to the terms of subdivision 5. This option may be elected at any time during the 
16.32 	120-day period referenced in paragraph (c); and
16.33 	(3) notify the policyholder or certificate holder that a default or lapse at any time 
16.34 	during the 120-day period referenced in paragraph (c) is deemed to be the election of 
16.35 	the offer to convert in clause (2).
16.36 	(f) On or before the effective date of a substantial premium increase as defined in 
16.37 	paragraph (d), the insurer shall:
17.1 	(1) offer to reduce policy benefits provided by the current coverage without the 
17.2 	requirement of additional underwriting so that required premium payments are not 
17.3 	increased;
17.4 	(2) offer to convert the coverage to a paid-up status where the amount payable for 
17.5 	each benefit is 90 percent of the amount payable in effect immediately prior to lapse times 
17.6 	the ratio of the number of completed months of paid premiums divided by the number of 
17.7 	months in the premium paying period. This option may be elected at any time during the 
17.8 	120-day period referenced in paragraph (d); and
17.9 	(3) notify the policyholder or certificate holder that a default or lapse at any time 
17.10 	during the 120-day period referenced in paragraph (d) shall be deemed to be the election 
17.11 	of the offer to convert in clause (2) if the ratio is 40 percent or more.

17.12 	Sec. 24. Minnesota Statutes 2008, section 62S.29, subdivision 1, is amended to read:
17.13 		Subdivision 1.Requirements. An insurer or other entity marketing long-term care 
17.14 	insurance coverage in this state, directly or through its producers, shall:
17.15 	(1) establish marketing procedures and agent training requirements to assure that 
17.16 	any marketing activities, including any comparison of policies by its agents or other 
17.17 	producers, are fair and accurate;
17.18 	(2) establish marketing procedures to assure excessive insurance is not sold or issued;
17.19 	(3) display prominently by type, stamp, or other appropriate means, on the first page 
17.20 	of the outline of coverage and policy, the following:
17.21 	"Notice to buyer: This policy may not cover all of the costs associated with 
17.22 	long-term care incurred by the buyer during the period of coverage. The buyer is advised 
17.23 	to review carefully all policy limitations.";
17.24 	(4) provide copies of the disclosure forms required in section 62S.081, subdivision 
17.25 	4, to the applicant;
17.26 	(5) inquire and otherwise make every reasonable effort to identify whether a 
17.27 	prospective applicant or enrollee for long-term care insurance already has long-term care 
17.28 	insurance and the types and amounts of the insurance;
17.29 	(6) establish auditable procedures for verifying compliance with this subdivision; 
17.30 	(7) if applicable, provide written notice to the prospective policyholder and 
17.31 	certificate holder, at solicitation, that a senior insurance counseling program approved by 
17.32 	the commissioner, the Senior LinkAge Line, is available and the name, address, and 
17.33 	telephone number of the program;
17.34 	(8) use the terms "noncancelable" or "level premium" only when the policy or 
17.35 	certificate conforms to section 62S.14; and
18.1 	(9) provide an explanation of contingent benefit upon lapse provided for in section 
18.2 	62S.266.

18.3 	Sec. 25. Minnesota Statutes 2009 Supplement, section 65A.29, subdivision 13, is 
18.4 	amended to read:
18.5 		Subd. 13.Notice of possible cancellation. (a) A written notice must be provided 
18.6 	to all applicants for homeowners' insurance, at the time the application is submitted, 
18.7 	containing the following language in bold print: "THE INSURER MAY ELECT 
18.8 	TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 6059 DAYS 
18.9 	FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS 
18.10 	NOT SPECIFICALLY PROHIBITED BY STATUTE."
18.11 	(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent 
18.12 	may advise the applicant orally or in writing of its availability for review on the insurer's 
18.13 	Web site in lieu of providing a written notice, if the insurer advises the applicant of the 
18.14 	availability of a written notice upon the applicant's request. The insurer shall provide the 
18.15 	notice in writing if requested by the applicant. An oral notice shall be presumed delivered 
18.16 	if the agent or insurer makes a contemporaneous notation in the applicant's record of 
18.17 	the notice having been delivered or if the insurer or agent retains an audio recording of 
18.18 	the notification provided to the applicant.

18.19 	Sec. 26. Minnesota Statutes 2008, section 72A.08, subdivision 1, is amended to read:
18.20 		Subdivision 1.Rebate defined and prohibited. No insurance company or 
18.21 	association, however constituted or entitled, including any affiliate of the insurance 
18.22 	company or association, doing business in this state, nor any officer, agent, subagent, 
18.23 	solicitor, employee, intermediary, or representative thereof, shall make or permit 
18.24 	any advantage or distinction in favor of any insured individual, firm, corporation, or 
18.25 	association with respect to the amount of premium named in, or to be paid on, any policy 
18.26 	of insurance, or shall offer to pay or allow directly or indirectly or by means of any device 
18.27 	or artifice, as inducements to insurance, any rebate or premium payable on the policy, or 
18.28 	any special favor or advantage in the dividends or other profit to accrue thereon, or any 
18.29 	valuable consideration or inducement not specified in the policy contract of insurance, 
18.30 	or give, sell, or purchase, offer to give, sell or purchase, as inducement to insure or in 
18.31 	connection therewith, any stocks, bonds, or other securities of any insurance company 
18.32 	or other corporation, association, partnership, or individual, or any dividends or profits 
18.33 	accrued or to accrue thereon, or anything of value, not specified in the policy. For 
18.34 	purposes of this section, "affiliate" has the meaning given in section 60D.15, subdivision 2.
19.1 	Nothing in this section shall be construed as prohibiting a life insurer, property insurer, or 
19.2 	casualty insurer, or agents who are marketing life insurance, annuities, accident and health 
19.3 	insurance, property insurance, or casualty insurance, from providing to a policyholder or 
19.4 	prospective policyholder of life, property, or casualty insurance, any prizes, goods, wares, 
19.5 	merchandise, articles, or property of an aggregate value of $25 or less.

19.6 	Sec. 27. Minnesota Statutes 2008, section 72A.20, subdivision 10, is amended to read:
19.7 		Subd. 10.Rebates. Except as otherwise expressly provided by law, knowingly 
19.8 	permitting or offering to make or making any contract of life insurance, annuity, or 
19.9 	accident and health insurance, or agreement as to such contract, other than as plainly 
19.10 	expressed in the contract issued thereon, or paying or allowing or giving, or offering to 
19.11 	pay, allow, or give, directly or indirectly, as inducement to such insurance or annuity, 
19.12 	any rebate of premiums payable on the contract, or any special favor or advantage in 
19.13 	the dividends or other benefits thereon, or any valuable consideration or inducement 
19.14 	whatever not specified in the contract; or giving or selling or purchasing, or offering to 
19.15 	give, sell, or purchase, as inducement to such insurance or annuity, or in connection 
19.16 	therewith, any stocks, bonds, or other securities of any insurance company or other 
19.17 	corporation, association, or partnership, or any dividends or profits accrued thereon, or 
19.18 	anything of value whatsoever not specified in the contract, shall constitute an unfair 
19.19 	method of competition and an unfair and deceptive act or practice. Nothing in this section 
19.20 	shall be construed as prohibiting providing to a policyholder or prospective policyholder 
19.21 	of life insurance, annuities, or accident and health insurance, any prizes, goods, wares, 
19.22 	merchandise, articles, or property of an aggregate value of $25 or less.

19.23 	Sec. 28. Minnesota Statutes 2008, section 72A.20, subdivision 36, is amended to read:
19.24 		Subd. 36.Limitations on the use of credit information. (a) No insurer or group of 
19.25 	affiliated insurers may reject, cancel, or nonrenew a policy of private passenger motor 
19.26 	vehicle insurance as defined under section 65B.01 or a policy of homeowner's insurance 
19.27 	as defined under section 65A.27, for any person in whole or in part on the basis of credit 
19.28 	information, including a credit reporting product known as a "credit score" or "insurance 
19.29 	score," without consideration and inclusion of any other applicable underwriting factor.
19.30 	(b) If credit information, credit scoring, or insurance scoring is to be used in 
19.31 	underwriting, the insurer must disclose to the consumer that credit information will be 
19.32 	obtained and used as part of the insurance underwriting process.
19.33 	(c) Insurance inquiries and non-consumer-initiated inquiries must not be used as part 
19.34 	of the credit scoring or insurance scoring process.
20.1 	(d) If a credit score, insurance score, or other credit information relating to a 
20.2 	consumer, with respect to the types of insurance referred to in paragraph (a), is adversely 
20.3 	impacted or cannot be generated because of the absence of a credit history, the insurer 
20.4 	must exclude the use of credit as a factor in the decision to reject, cancel, or nonrenew.
20.5 	(e) Insurers must upon the request of a policyholder reevaluate the policyholder's 
20.6 	score. Any change in premium resulting from the reevaluation must be effective upon 
20.7 	the renewal of the policy. An insurer is not required to reevaluate a policyholder's score 
20.8 	pursuant to this paragraph more than twice in any given calendar year.
20.9 	(f) Insurers must upon request of the applicant or policyholder provide reasonable 
20.10 	underwriting exceptions based upon prior credit histories for persons whose credit 
20.11 	information is unduly influenced by expenses related to a catastrophic injury or illness, 
20.12 	temporary loss of employment, or the death of an immediate family member. The insurer 
20.13 	may require reasonable documentation of these events prior to granting an exception.
20.14 	(g) A credit scoring or insurance scoring methodology must not be used by an 
20.15 	insurer if the credit scoring or insurance scoring methodology incorporates the gender, 
20.16 	race, nationality, or religion of an insured or applicant.
20.17 	(h) Insurers that employ a credit scoring or insurance scoring system in underwriting 
20.18 	of coverage described in paragraph (a) must have on file with the commissioner:
20.19 	(1) the insurer's credit scoring or insurance scoring methodology; and
20.20 	(2) information that supports the insurer's use of a credit score or insurance score as 
20.21 	an underwriting criterion.
20.22 	(i) Insurers described in paragraph (g)(h) shall file the required information with the 
20.23 	commissioner within 120 days of August 1, 2002, or prior to implementation of a credit 
20.24 	scoring or insurance scoring system by the insurer, if that date is later.
20.25 	(j) Information provided by, or on behalf of, an insurer to the commissioner under 
20.26 	this subdivision is trade secret information under section 13.37.

20.27 	Sec. 29. Minnesota Statutes 2008, section 72A.20, subdivision 37, is amended to read:
20.28 		Subd. 37.Electronic transmission of required information. (a) A health carrier, 
20.29 	as defined in section 62A.011, subdivision 2, is not in violation of this chapter for 
20.30 	electronically transmitting or electronically making available information otherwise 
20.31 	required to be delivered in writing under chapters 62A to 62Q and 72A to an enrollee as 
20.32 	defined in section 62Q.01, subdivision 2a, or to a health plan as defined in paragraph (b), 
20.33 	and with the requirements of those chapters if the following conditions are met: 
21.1 	(1) the health carrier informs the group policyholder or the enrollee or both that 
21.2 	electronic transmission or access is available and, at the discretion of the health carrier, the 
21.3 	enrollee is given one of the following options:
21.4 	(i) electronic transmission or access will occur only if the group policyholder or the 
21.5 	enrollee or both affirmatively requests to the health carrier that the required information 
21.6 	be electronically transmitted or available and a record of that request is retained by the 
21.7 	health carrier; or
21.8 	(ii) electronic transmission or access will automatically occur if the group 
21.9 	policyholder or the enrollee or both has not opted out of that manner of transmission by 
21.10 	request to the health carrier and requested that the information be provided in writing. If 
21.11 	the group policyholder or the enrollee or both opts out of electronic transmission, a record 
21.12 	of that request must be retained by the health carrier;
21.13 	(2) the group policyholder or the enrollee or both is allowed to withdraw the request 
21.14 	at any time;
21.15 	(3) if the information transmitted electronically contains individually identifiable 
21.16 	data, it must be transmitted to a secured mailbox. If the information made available 
21.17 	electronically contains individually identifiable data, it must be made available at a 
21.18 	password-protected secured Web site;
21.19 	(4) the group policyholder or the enrollee or both is provided a customer service 
21.20 	number on the enrollee's member card that may be called to request a written copy of 
21.21 	the document; and
21.22 	(5) the electronic transmission or electronic availability meets all other requirements 
21.23 	of this chapter including, but not limited to, size of the typeface and any required time 
21.24 	frames for distribution.
21.25 	(b) For the purpose of this section, "health plan" means a health plan as defined 
21.26 	in section 62A.011 or a policy of accident and sickness insurance as defined in section 
21.27 	62A.01.

21.28 	Sec. 30. Minnesota Statutes 2008, section 72A.492, subdivision 2, is amended to read:
21.29 		Subd. 2.Covered persons. The rights granted by sections 72A.49 to 72A.505
21.30 	extend to:
21.31 	(1) a person who is a resident of this state and is the subject of information collected, 
21.32 	received, or maintained in connection with an insurance transaction; and
21.33 	(2) a person who is a resident of this state and engages in or seeks to engage in 
21.34 	an insurance transaction.

22.1 	Sec. 31. Minnesota Statutes 2008, section 72B.01, is amended to read:
22.2 	72B.01 PURPOSE AND SCOPE.
22.3 	It is the purpose of sections 72B.01 to 72B.14 to provide high quality service to 
22.4 	insureds and insurance claimants in the state of Minnesota by providing for well trained 
22.5 	adjusters and persons engaged in soliciting business for adjusters, who are qualified to deal 
22.6 	with the public in the interest of a fair resolution of insurance claims. Sections 72B.01 to 
22.7 	72B.14 shall apply to all adjusters, and adjusters' solicitors, except as specifically stated to 
22.8 	the contrary; but nothing in sections 72B.01 to 72B.14 shall apply to:
22.9 	(a) An attorney at law who is licensed or otherwise allowed to practice law in this 
22.10 	state and who does not hold out to be an adjuster, or adjuster's solicitor.
22.11 	(b) A licensed agent of an authorized insurer who adjusts losses for such insurer 
22.12 	solely under policies issued by the agent or the agent's agency or on which the agent is the 
22.13 	agent of record, provided the agent receives no extra compensation for such services.
22.14 	(c) Personnel of township mutual companies.
22.15 	(d) Adjusters for crop hail and farm windstorm damage claims who are on the staff 
22.16 	of companies covering such risks.
22.17 	(e) Persons who process life insurance annuity contract or accident and health 
22.18 	insurance claims.
22.19 	(f) Persons processing or adjusting wet marine or inland transportation claims or 
22.20 	losses.

22.21 	Sec. 32. Minnesota Statutes 2009 Supplement, section 72B.03, subdivision 2, is 
22.22 	amended to read:
22.23 		Subd. 2.Classes of licenses. (a) Unless denied licensure pursuant to section 72B.08, 
22.24 	persons who have met the requirements of section 72B.04 72B.041 must be issued an 
22.25 	adjuster license. There shall be four classes of licenses, as follows:
22.26 	(1) independent adjuster's license;
22.27 	(2) public adjuster's license;
22.28 	(3) public adjuster solicitor's license; and
22.29 	(4) crop hail adjuster's license.
22.30 	(b) An independent adjuster and a public adjuster may qualify for a license in one or 
22.31 	more of the following lines of authority:
22.32 	(1) property and casualty; or
22.33 	(2) workers' compensation; or
22.34 	(3) crop.
23.1 	(c) Any person holding a license pursuant to this section is not required to hold any 
23.2 	other independent adjuster, public adjuster, insurance, or self-insurance administrator 
23.3 	license in this state pursuant to section 60A.23, subdivision 8, or any other provision, 
23.4 	provided that the person does not act as an adjuster with respect to life, health, or annuity 
23.5 	insurance, other than disability insurance.
23.6 	(d) An adjuster license remains in effect unless probated, suspended, revoked, or 
23.7 	refused as long as the fee set forth in section 72B.04, subdivision 10 72B.041, subdivision 
23.8 	9, is paid and all other requirements for license renewal are met by the due date, otherwise, 
23.9 	the license expires.
23.10 	(e) An adjuster whose license expires may, within 12 months of the renewal date, 
23.11 	be reissued an adjuster license upon receipt of the renewal request, as prescribed by the 
23.12 	commissioner; however, a penalty in the amount of double the unpaid renewal fee is 
23.13 	required to reissue the expired license.
23.14 	(f) An adjuster who is unable to comply with license renewal procedures and 
23.15 	requirements due to military service, long-term medical disability, or some other 
23.16 	extenuating circumstance may request a waiver of same and a waiver of any examination 
23.17 	requirement, fine, or other sanction imposed for failure to comply with renewal procedures.
23.18 	(g) An adjuster is subject to sections 72A.17 to 72A.32.
23.19 	(h) The adjuster must inform the commissioner by any means acceptable of any 
23.20 	change in resident or business addresses for the home state or in legal name within 30 
23.21 	days of the change.
23.22 	(i) The license must contain the licensee's name, address, and personal identification 
23.23 	number; the dates of issuance and expiration; and any other information the commissioner 
23.24 	deems necessary.
23.25 	(j) In order to assist in the performance of the commissioner's duties, the 
23.26 	commissioner may contract with nongovernmental entities, including the National 
23.27 	Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any 
23.28 	ministerial functions related to licensing that the commissioner may deem appropriate, 
23.29 	including the collection of fees and data.

23.30 	Sec. 33. Minnesota Statutes 2009 Supplement, section 72B.045, subdivision 1, is 
23.31 	amended to read:
23.32 		Subdivision 1.Requirement. An individual who holds an independent or public
23.33 	adjuster license and who is not exempt under this section must satisfactorily complete 
23.34 	a minimum of 24 hours of continuing education courses, of which three hours must 
24.1 	be in ethics, reported to the commissioner on a biennial basis in conjunction with the 
24.2 	individual's license renewal cycle.

24.3 	Sec. 34. Minnesota Statutes 2009 Supplement, section 72B.06, is amended to read:
24.4 	72B.06 CATASTROPHE OR EMERGENCY SITUATIONS.
24.5 	(a) In the event of a declared catastrophe or the occurrence of an emergency 
24.6 	situation,For purposes of this chapter, a catastrophe exists when, due to a specific, 
24.7 	infrequent, and sudden natural or man-made disaster or phenomenon, there have arisen 
24.8 	losses to property in Minnesota that are covered by insurance, and the losses are so 
24.9 	numerous and severe that resolution of claims related to such covered property losses will 
24.10 	not occur expeditiously without the licensing of emergency independent adjusters due to 
24.11 	the magnitude of the catastrophic damage. A failure of claims to be resolved expeditiously 
24.12 	shall exist upon an insurer's filing with the department a written statement that one of the 
24.13 	following conditions exists: (1) the insurer expects to incur at least 500 claims as a result 
24.14 	of the event; or (2) the magnitude of the event is expected to generate twice the mean 
24.15 	number of claims for one month for the affected area. Such written statement may be 
24.16 	sent electronically to the commissioner. An insurer must notify the commissioner via an 
24.17 	application for registration of each individualindependent adjuster not already licensed in 
24.18 	the state where the catastrophe has been declared or an emergency situation has occurred
24.19 	Minnesota, that will act as an emergency independent adjuster on behalf of the insurer
24.20 	pursuant to paragraph (b).
24.21 	(b) A person who is otherwise qualified to adjust claims, but not already licensed in 
24.22 	the state where the catastrophe has been declared or an emergency situation has occurred
24.23 	Minnesota, may act as an emergency independent adjuster and adjust claims, if, within 
24.24 	five days of deployment to adjust claims arising from the declared catastrophe or the 
24.25 	occurrence of an emergency situation, the insurer or the independent adjuster's employer, 
24.26 	in the notification required by paragraph (a), notifies the commissioner by providing the 
24.27 	following information in a format prescribed by the commissioner:
24.28 	(1) the name of the individual;
24.29 	(2) the Social Security number of the individual;
24.30 	(3) the name of the insurer the independent adjuster will represent;
24.31 	(4) the effective date of the contract between the insurer and independent adjuster or 
24.32 	the independent adjuster's employer;
24.33 	(5) the catastrophe, emergency situation, or loss control number;
24.34 	(6) the catastrophe or emergency situation event name; and
24.35 	(7) other information the commissioner deems necessary.
25.1 	(c) An emergency independent adjuster's license or registration remains in force for 
25.2 	the period of time established by the commissioner 180 days; such license or registration 
25.3 	shall be effective for all catastrophes described in paragraph (a), clauses (1) and (2). Such 
25.4 	license or registration may be extended for 180 days.
25.5 	The commissioner may summarily suspend or revoke the right of any person 
25.6 	adjusting in this state under the authority of this section to continue to adjust in this state, 
25.7 	if the commissioner finds that that person has engaged in any of the practices forbidden 
25.8 	to a licensed adjuster under sections 72B.01 to 72B.14. Notice of such suspension or 
25.9 	revocation may be given personally or by mail sent to the temporary address stated in the 
25.10 	registration and to the insurer or independent adjusting firm company who submitted the 
25.11 	independent adjuster information.

25.12 	Sec. 35. Minnesota Statutes 2008, section 72B.08, subdivision 8, is amended to read:
25.13 		Subd. 8.Bond. In the case of any licensee or permit holder who has had a license or 
25.14 	permit suspended or revoked or whose license renewal has been prohibited by a lawful 
25.15 	order of the commissioner, the commissioner may condition the issuance of a new license 
25.16 	on the filing of a surety bond in an amount not to exceed $10,000, made and conditioned in 
25.17 	accordance with the requirements of section 72B.04, subdivision 4 72B.041, subdivision 
25.18 	3, relating to public adjusters' bonds. Nothing in this subdivision shall reduce or alter the 
25.19 	bonding requirements for a public adjuster.

25.20 	Sec. 36. Minnesota Statutes 2008, section 79A.03, subdivision 8, is amended to read:
25.21 		Subd. 8.Processing application. The commissioner shall grant or deny the group's 
25.22 	application to self-insure within 60 days after a complete application has been filed, 
25.23 	provided that the time may be extended for an additional 30 days upon 15 days' prior 
25.24 	notice to the applicant. The commissioner shall grant approval for self-insurance upon 
25.25 	a determination that the financial ability of the self-insurer's group is sufficient to fulfill 
25.26 	all joint and several obligations of the member companies that may arise under chapter 
25.27 	176 or this chapter; the gross annual premium of the group members is at least $300,000
25.28 	150 percent of the WCRA minimum retention in effect at the time of the application; the 
25.29 	group has established a fund pursuant to Minnesota Rules, parts 2780.4100 to 2780.5000; 
25.30 	the group has contracted with a licensed workers' compensation service company to 
25.31 	administer its program; and the required securities or surety bond shall be on deposit prior 
25.32 	to the effective date of coverage for any member. Approval shall be effective until revoked 
25.33 	by order of the commissioner or until the employer members of the group become insured.

26.1 	Sec. 37. Minnesota Statutes 2008, section 79A.06, subdivision 5, is amended to read:
26.2 		Subd. 5.Private employers who have ceased to be self-insured. (a) Private 
26.3 	employers who have ceased to be private self-insurers shall discharge their continuing 
26.4 	obligations to secure the payment of compensation which is accrued during the period of 
26.5 	self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to 21, by compliance 
26.6 	with all of the following obligations of current certificate holders:
26.7 	(1) Filing reports with the commissioner to carry out the requirements of this chapter;
26.8 	(2) Depositing and maintaining a security deposit for accrued liability for the 
26.9 	payment of any compensation which may become due, pursuant to chapter 176. However, 
26.10 	if a private employer who has ceased to be a private self-insurer purchases an insurance 
26.11 	policy from an insurer authorized to transact workers' compensation insurance in this state 
26.12 	which provides coverage of all claims for compensation arising out of injuries occurring 
26.13 	during the entire period the employer was self-insured, whether or not reported during 
26.14 	that period, the policy will:
26.15 	(i) discharge the obligation of the employer to maintain a security deposit for the 
26.16 	payment of the claims covered under the policy;
26.17 	(ii) discharge any obligation which the self-insurers' security fund has or may have 
26.18 	for payment of all claims for compensation arising out of injuries occurring during the 
26.19 	period the employer was self-insured, whether or not reported during that period; and
26.20 	(iii) discharge the obligations of the employer to pay any future assessments to 
26.21 	the self-insurers' security fund; provided, however, that a member that terminates its 
26.22 	self-insurance authority on or after August 1, 2010, shall be liable for an assessment under 
26.23 	paragraph (b). The actuarial opinion shall not take into consideration any transfer of the 
26.24 	member's liabilities to an insurance policy if the member obtains a replacement policy as 
26.25 	described in this subdivision within one year of the date of terminating its self-insurance.
26.26 	A private employer who has ceased to be a private self-insurer may instead buy an 
26.27 	insurance policy described above, except that it covers only a portion of the period of time 
26.28 	during which the private employer was self-insured; purchase of such a policy discharges 
26.29 	any obligation that the self-insurers' security fund has or may have for payment of all 
26.30 	claims for compensation arising out of injuries occurring during the period for which the 
26.31 	policy provides coverage, whether or not reported during that period.
26.32 	A policy described in this clause may not be issued by an insurer unless it has 
26.33 	previously been approved as to form and substance by the commissioner; and
26.34 	(3) Paying within 30 days all assessments of which notice is sent by the security 
26.35 	fund, for a period of seven years from the last day its certificate of self-insurance was in 
26.36 	effect. Thereafter, the private employer who has ceased to be a private self-insurer may 
27.1 	either: (i) continue to pay within 30 days all assessments of which notice is sent by the 
27.2 	security fund until it has no incurred liabilities for the payment of compensation arising 
27.3 	out of injuries during the period of self-insurance; or (ii) pay the security fund a cash 
27.4 	payment equal to four percent of the net present value of all remaining incurred liabilities 
27.5 	for the payment of compensation under sections 176.101 and 176.111 as certified by a 
27.6 	member of the casualty actuarial society. Assessments shall be based on the benefits paid 
27.7 	by the employer during the calendar year immediately preceding the calendar year in 
27.8 	which the employer's right to self-insure is terminated or withdrawn.
27.9 	(b) With respect to a self-insurer who terminates its self-insurance authority after 
27.10 	April 1, 1998, that member shall obtain and file with the commissioner an actuarial 
27.11 	opinion of its outstanding liabilities as determined by an associate or fellow of the 
27.12 	Casualty Actuarial Society within 120 days of the date of its termination. If the actuarial 
27.13 	opinion is not timely filed, the self-insurers' security fund may, at its discretion, engage 
27.14 	the services of an actuary for this purpose. The expense of this actuarial opinion must 
27.15 	be assessed against and be the obligation of the self-insurer. The commissioner may 
27.16 	issue a certificate of default against the self-insurer for failure to pay this assessment 
27.17 	to the self-insurers' security fund as provided by section 79A.04, subdivision 9. The 
27.18 	opinion must separate liability for indemnity benefits from liability from medical benefits, 
27.19 	and must may discount each liabilities up to four percent per annum to net present 
27.20 	value. Within 30 60 days after notification of approval of the actuarial opinion by the 
27.21 	commissioner, the exiting member shall pay to the security fund an amount equal to 120 
27.22 	percent of that discounted outstanding indemnity liability, multiplied by the greater of the 
27.23 	average annualized assessment rate since inception of the security fund or the annual 
27.24 	rate at the time of the most recent assessment before termination determined as follows:
27.25 	a percentage will be determined by dividing the security fund's members' deficit as 
27.26 	determined by the most recent audited financial statement of the security fund by the total 
27.27 	actuarial liability of all members of the security fund as calculated by the commissioner 
27.28 	within 30 days of the exit date of the member. This quotient will then be multiplied by 
27.29 	that exiting member's total future liability as contained in the exiting member's actuarial 
27.30 	opinion. If the payment is not made within 30 days of the notification, interest on it at the 
27.31 	rate prescribed by section 549.09 must be paid by the former member to the security fund 
27.32 	until the principal amount is paid in full.
27.33 	(c) A former member who terminated its self-insurance authority before April 1, 
27.34 	1998, who has paid assessments to the self-insurers' security fund for seven years, and 
27.35 	whose annualized assessment is $15,000 or less, may buy out of its outstanding liabilities 
27.36 	to the self-insurers' security fund by an amount calculated as follows: 1.35 multiplied by 
28.1 	the indemnity case reserves at the time of the calculation, multiplied by the then current 
28.2 	self-insurers' security fund annualized assessment rate.
28.3 	(d) A former member who terminated its self-insurance authority before April 1, 
28.4 	1998, and who is paying assessments within the first seven years after ceasing to be 
28.5 	self-insured under paragraph (a), clause (3), may elect to buy out its outstanding liabilities 
28.6 	to the self-insurers' security fund by obtaining and filing with the commissioner an 
28.7 	actuarial opinion of its outstanding liabilities as determined by an associate or fellow of 
28.8 	the Casualty Actuarial Society. The opinion must separate liability for indemnity benefits 
28.9 	from liability for medical benefits, and must discount each up to four percent per annum to 
28.10 	net present value. Within 30 days after notification of approval of the actuarial opinion 
28.11 	by the commissioner, the member shall pay to the security fund an amount equal to 120 
28.12 	percent of that discounted outstanding indemnity liability, multiplied by the greater of the 
28.13 	average annualized assessment rate since inception of the security fund or the annual rate 
28.14 	at the time of the most recent assessment.
28.15 	(e) A former member who has paid the security fund according to paragraphs (b) to 
28.16 	(d) and subsequently receives authority from the commissioner to again self-insure shall be 
28.17 	assessed under section 79A.12, subdivision 2, only on indemnity benefits paid on injuries 
28.18 	that occurred after the former member received authority to self-insure again; provided 
28.19 	that the member furnishes verified data regarding those benefits to the security fund.
28.20 	(f) In addition to proceedings to establish liabilities and penalties otherwise 
28.21 	provided, a failure to comply may be the subject of a proceeding before the commissioner. 
28.22 	An appeal from the commissioner's determination may be taken pursuant to the contested 
28.23 	case procedures of chapter 14 within 30 days of the commissioner's written determination.
28.24 	Any current or past member of the self-insurers' security fund is subject to service of 
28.25 	process on any claim arising out of chapter 176 or this chapter in the manner provided by 
28.26 	section 5.25, or as otherwise provided by law. The issuance of a certificate to self-insure 
28.27 	to the private self-insured employer shall be deemed to be the agreement that any process 
28.28 	which is served in accordance with this section shall be of the same legal force and effect 
28.29 	as if served personally within this state.

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

28.32 	Sec. 38. Minnesota Statutes 2008, section 79A.21, subdivision 3, is amended to read:
28.33 		Subd. 3.Approval. The commissioner shall approve an application for 
28.34 	self-insurance upon a determination that all of the following conditions are met:
29.1 	(1) a completed application and all required documents have been submitted to 
29.2 	the commissioner;
29.3 	(2) the financial ability of the commercial self-insurance group is sufficient to fulfill 
29.4 	all obligations that may arise under this chapter or chapter 176;
29.5 	(3) the annual premium of the commercial self-insurance group to be charged to 
29.6 	initial members is at least $400,000 150 percent of the WCRA minimum retention in 
29.7 	effect at the time of the application;
29.8 	(4) the commercial self-insurance group has contracted with a service company to 
29.9 	administer its program; and
29.10 	(5) the required securities or surety bond shall be on deposit prior to the effective 
29.11 	date of coverage for the commercial self-insurance group.

29.12 	Sec. 39. Minnesota Statutes 2008, section 80A.41, is amended to read:
29.13 	80A.41 SECTION 102; DEFINITIONS. 
29.14 	In this chapter, unless the context otherwise requires: 
29.15 	(1) "Accredited investor" means an accredited investor as the term is defined in Rule 
29.16 	501(a) of Regulation D adopted pursuant to the Securities Act of 1933. 
29.17 	(2) "Administrator" means the commissioner of commerce. 
29.18 	(3) "Agent" means an individual, other than a broker-dealer, who represents a 
29.19 	broker-dealer in effecting or attempting to effect purchases or sales of securities or 
29.20 	represents an issuer in effecting or attempting to effect purchases or sales of the issuer's 
29.21 	securities.  But a partner, officer, or director of a broker-dealer or issuer, or an individual 
29.22 	having a similar status or performing similar functions is an agent only if the individual 
29.23 	otherwise comes within the term.  The term does not include an individual excluded by 
29.24 	rule adopted or order issued under this chapter. 
29.25 	(4) "Bank" means: 
29.26 	(A) a banking institution organized under the laws of the United States; 
29.27 	(B) a member bank of the Federal Reserve System; 
29.28 	(C) any other banking institution, whether incorporated or not, doing business 
29.29 	under the laws of a state or of the United States, a substantial portion of the business 
29.30 	of which consists of receiving deposits or exercising fiduciary powers similar to those 
29.31 	permitted to be exercised by national banks under the authority of the Comptroller of the 
29.32 	Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a), and which 
29.33 	is supervised and examined by a state or federal agency having supervision over banks, 
29.34 	and which is not operated for the purpose of evading this chapter; and 
30.1 	(D) a receiver, conservator, or other liquidating agent of any institution or firm 
30.2 	included in subparagraph (A), (B), or (C). 
30.3 	(5) "Broker-dealer" means a person engaged in the business of effecting transactions 
30.4 	in securities for the account of others or for the person's own account.  The term does 
30.5 	not include: 
30.6 	(A) an agent; 
30.7 	(B) an issuer; 
30.8 	(C) a depository institution; provided such activities are conducted in accordance 
30.9 	with such rules as may be adopted by the administrator; 
30.10 	(D) an international banking institution; or 
30.11 	(E) a person excluded by rule adopted or order issued under this chapter. 
30.12 	(6) "Depository institution" means: 
30.13 	(A) a bank; or 
30.14 	(B) a savings institution, trust company, credit union, or similar institution that 
30.15 	is organized or chartered under the laws of a state or of the United States, authorized 
30.16 	to receive deposits, and supervised and examined by an official or agency of a state or 
30.17 	the United States if its deposits or share accounts are insured to the maximum amount 
30.18 	authorized by statute by the Federal Deposit Insurance Corporation, the National Credit 
30.19 	Union Share Insurance Fund, or a successor authorized by federal law.  The term does 
30.20 	not include: 
30.21 	(i) an insurance company or other organization primarily engaged in the business 
30.22 	of insurance; 
30.23 	(ii) a Morris Plan bank; or 
30.24 	(iii) an industrial loan company that is not an "insured depository institution" as 
30.25 	defined in section 3(c)(2) of the Federal Deposit Insurance Act, United States Code, title 
30.26 	12, section 1813(c)(2), or any successor federal statute. 
30.27 	(7) "Federal covered investment adviser" means a person registered under the 
30.28 	Investment Advisers Act of 1940. 
30.29 	(8) "Federal covered security" means a security that is, or upon completion of a 
30.30 	transaction will be, a covered security under Section 18(b) of the Securities Act of 1933 
30.31 	(15 U.S.C. Section 77r(b)) or rules or regulations adopted pursuant to that provision. 
30.32 	(9) "Filing" means the receipt under this chapter of a record by the administrator or 
30.33 	a designee of the administrator. 
30.34 	(10) "Fraud," "deceit," and "defraud" are not limited to common law deceit. 
30.35 	(11) "Guaranteed" means guaranteed as to payment of all principal and all interest. 
31.1 	(12) "Institutional investor" means any of the following, whether acting for itself or 
31.2 	for others in a fiduciary capacity: 
31.3 	(A) a depository institution or international banking institution; 
31.4 	(B) an insurance company; 
31.5 	(C) a separate account of an insurance company; 
31.6 	(D) an investment company as defined in the Investment Company Act of 1940; 
31.7 	(E) a broker-dealer registered under the Securities Exchange Act of 1934; 
31.8 	(F) an employee pension, profit-sharing, or benefit plan if the plan has total assets 
31.9 	in excess of $10,000,000 or its investment decisions are made by a named fiduciary, as 
31.10 	defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer 
31.11 	registered under the Securities Exchange Act of 1934, an investment adviser registered 
31.12 	or exempt from registration under the Investment Advisers Act of 1940, an investment 
31.13 	adviser registered under this chapter, a depository institution, or an insurance company; 
31.14 	(G) a plan established and maintained by a state, a political subdivision of a state, or 
31.15 	an agency or instrumentality of a state or a political subdivision of a state for the benefit 
31.16 	of its employees, if the plan has total assets in excess of $10,000,000 or its investment 
31.17 	decisions are made by a duly designated public official or by a named fiduciary, as 
31.18 	defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer 
31.19 	registered under the Securities Exchange Act of 1934, an investment adviser registered 
31.20 	or exempt from registration under the Investment Advisers Act of 1940, an investment 
31.21 	adviser registered under this chapter, a depository institution, or an insurance company; 
31.22 	(H) a trust, if it has total assets in excess of $10,000,000, its trustee is a depository 
31.23 	institution, and its participants are exclusively plans of the types identified in subparagraph 
31.24 	(F) or (G), regardless of the size of their assets, except a trust that includes as participants 
31.25 	self-directed individual retirement accounts or similar self-directed plans; 
31.26 	(I) an organization described in Section 501(c)(3) of the Internal Revenue Code (26 
31.27 	U.S.C. Section 501(c)(3)), corporation, Massachusetts trust or similar business trust, 
31.28 	limited liability company, or partnership, not formed for the specific purpose of acquiring 
31.29 	the securities offered, with total assets in excess of $10,000,000; 
31.30 	(J) a small business investment company licensed by the Small Business 
31.31 	Administration under Section 301(c) of the Small Business Investment Act of 1958 (15 
31.32 	U.S.C. Section 681(c)) with total assets in excess of $10,000,000; 
31.33 	(K) a private business development company as defined in Section 202(a)(22) of 
31.34 	the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(22)) with total assets 
31.35 	in excess of $10,000,000; 
31.36 	(L) a federal covered investment adviser acting for its own account; 
32.1 	(M) a "qualified institutional buyer" as defined in Rule 144A(a)(1), other than Rule 
32.2 	144A(a)(1)(i)(H), adopted under the Securities Act of 1933 (17 C.F.R. 230.144A); 
32.3 	(N) a "major U.S. institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted 
32.4 	under the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6); 
32.5 	(O) any other person, other than an individual, of institutional character with total 
32.6 	assets in excess of $10,000,000 not organized for the specific purpose of evading this 
32.7 	chapter; or 
32.8 	(P) any other person specified by rule adopted or order issued under this chapter; 
32.9 	(13) "Insurance company" means a company organized as an insurance company 
32.10 	whose primary business is writing insurance or reinsuring risks underwritten by insurance 
32.11 	companies and which is subject to supervision by the insurance commissioner or a similar 
32.12 	official or agency of a state. 
32.13 	(14) "Insured" means insured as to payment of all principal and all interest. 
32.14 	(15) "International banking institution" means an international financial institution 
32.15 	of which the United States is a member and whose securities are exempt from registration 
32.16 	under the Securities Act of 1933. 
32.17 	(16) "Investment adviser" means a person that, for compensation, engages in the 
32.18 	business of advising others, either directly or through publications or writings, as to the 
32.19 	value of securities or the advisability of investing in, purchasing, or selling securities or 
32.20 	that, for compensation and as a part of a regular business, issues or promulgates analyses 
32.21 	or reports concerning securities.  The term includes a financial planner or other person 
32.22 	that, as an integral component of other financially related services, provides investment 
32.23 	advice to others for compensation as part of a business or that holds itself out as providing 
32.24 	investment advice to others for compensation.  The term does not include: 
32.25 	(A) an investment adviser representative; 
32.26 	(B) a lawyer, accountant, engineer, or teacher whose performance of investment 
32.27 	advice is solely incidental to the practice of the person's profession; 
32.28 	(C) a broker-dealer or its agents whose performance of investment advice is solely 
32.29 	incidental to the conduct of business as a broker-dealer and that does not receive special 
32.30 	compensation for the investment advice; 
32.31 	(D) a publisher of a bona fide newspaper, news magazine, or business or financial 
32.32 	publication of general and regular circulation; 
32.33 	(E) a federal covered investment adviser; 
32.34 	(F) a bank or savings institution; 
32.35 	(G) any other person that is excluded by the Investment Advisers Act of 1940 from 
32.36 	the definition of investment adviser; or 
33.1 	(H) any other person excluded by rule adopted or order issued under this chapter. 
33.2 	(17) "Investment adviser representative" means an individual employed by or 
33.3 	associated with an investment adviser or federal covered investment adviser and who 
33.4 	makes any recommendations or otherwise gives investment advice regarding securities, 
33.5 	manages accounts or portfolios of clients, determines which recommendation or advice 
33.6 	regarding securities should be given, provides investment advice or holds herself or 
33.7 	himself out as providing investment advice, receives compensation to solicit, offer, or 
33.8 	negotiate for the sale of or for selling investment advice, or supervises employees who 
33.9 	perform any of the foregoing.  The term does not include an individual who: 
33.10 	(A) performs only clerical or ministerial acts; 
33.11 	(B) is an agent whose performance of investment advice is solely incidental to 
33.12 	the individual acting as an agent and who does not receive special compensation for 
33.13 	investment advisory services; 
33.14 	(C) is employed by or associated with a federal covered investment adviser, unless 
33.15 	the individual has a "place of business" in this state as that term is defined by rule adopted 
33.16 	under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a) 
33.17 	and is 
33.18 	(i) an "investment adviser representative" as that term is defined by rule adopted 
33.19 	under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or 
33.20 	(ii) not a "supervised person" as that term is defined in Section 202(a)(25) of the 
33.21 	Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or 
33.22 	(D) is excluded by rule adopted or order issued under this chapter. 
33.23 	(18) "Issuer" means a person that issues or proposes to issue a security, subject to 
33.24 	the following: 
33.25 	(A) The issuer of a voting trust certificate, collateral trust certificate, certificate of 
33.26 	deposit for a security, or share in an investment company without a board of directors or 
33.27 	individuals performing similar functions is the person performing the acts and assuming 
33.28 	the duties of depositor or manager pursuant to the trust or other agreement or instrument 
33.29 	under which the security is issued. 
33.30 	(B) The issuer of an equipment trust certificate or similar security serving the same 
33.31 	purpose is the person by which the property is or will be used or to which the property 
33.32 	or equipment is or will be leased or conditionally sold or that is otherwise contractually 
33.33 	responsible for assuring payment of the certificate. 
33.34 	(C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease 
33.35 	or in payments out of production under a lease, right, or royalty is the owner of an interest 
34.1 	in the lease or in payments out of production under a lease, right, or royalty, whether 
34.2 	whole or fractional, that creates fractional interests for the purpose of sale. 
34.3 	(19) "Nonissuer transaction" or "nonissuer distribution" means a transaction or 
34.4 	distribution not directly or indirectly for the benefit of the issuer. 
34.5 	(20) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an 
34.6 	offer to sell, a security or interest in a security for value.  The term does not include a 
34.7 	tender offer that is subject to Section 14(d) of the Securities Exchange Act of 1934 (15 
34.8 	U.S.C. Section 78n(d)). 
34.9 	(21) "Person" means an individual; corporation; business trust; estate; trust; 
34.10 	partnership; limited liability company; association; joint venture; government; 
34.11 	governmental subdivision, agency, or instrumentality; public corporation; or any other 
34.12 	legal or commercial entity. 
34.13 	(22) "Place of business" of a broker-dealer, an investment adviser, or a federal 
34.14 	covered investment adviser means: 
34.15 	(A) an office at which the broker-dealer, investment adviser, or federal covered 
34.16 	investment adviser regularly provides brokerage or investment advice or solicits, meets 
34.17 	with, or otherwise communicates with customers or clients; or 
34.18 	(B) any other location that is held out to the general public as a location at which 
34.19 	the broker-dealer, investment adviser, or federal covered investment adviser provides 
34.20 	brokerage or investment advice or solicits, meets with, or otherwise communicates with 
34.21 	customers or clients. 
34.22 	(23) "Predecessor Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31. 
34.23 	(24) "Price amendment" means the amendment to a registration statement filed under 
34.24 	the Securities Act of 1933 or, if an amendment is not filed, the prospectus or prospectus 
34.25 	supplement filed under the Securities Act of 1933 that includes a statement of the offering 
34.26 	price, underwriting and selling discounts or commissions, amount of proceeds, conversion 
34.27 	rates, call prices, and other matters dependent upon the offering price. 
34.28 	(25) "Principal place of business" of a broker-dealer or an investment adviser means 
34.29 	the executive office of the broker-dealer or investment adviser from which the officers, 
34.30 	partners, or managers of the broker-dealer or investment adviser direct, control, and 
34.31 	coordinate the activities of the broker-dealer or investment adviser. 
34.32 	(26) Only for purposes of calculating the number of purchasers under section 
34.33 	80A.46(1) and 80A.46(14), "purchaser" does not include: 
34.34 	(A) any relative, spouse, or relative of the spouse of a purchaser who has the same 
34.35 	principal residence as the purchaser; 
35.1 	(B) any trust or estate in which a purchaser and any of the persons related to him as 
35.2 	specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50 
35.3 	percent of the beneficial interest (excluding contingent interests); 
35.4 	(C) any corporation or other organization of which a purchaser and any of the 
35.5 	persons related to the purchaser as specified in Regulation D, Rule 501(e)(1)(i) or 
35.6 	(e)(1)(ii) collectively are beneficial owners of more than 50 percent of the equity securities 
35.7 	(excluding directors' qualifying shares) or equity interests; and 
35.8 	(D) any accredited investor. 
35.9 	A corporation, partnership, or other entity must be counted as one purchaser.  If, 
35.10 	however, that entity is organized for the specific purpose of acquiring the securities offered 
35.11 	and is not an accredited investor, then each beneficial owner of equity securities or equity 
35.12 	interests in the entity shall count as a separate purchaser for all provisions of Regulation 
35.13 	D, except to the extent provided in Regulation D, Rule 501(e)(1). 
35.14 	A noncontributory employee benefit plan within the meaning of Title I of the 
35.15 	Employee Retirement Income Security Act of 1974 shall be counted as one purchaser 
35.16 	where the trustee makes all investment decisions for the plan. 
35.17 	(27) "Record," except in the phrases "of record," "official record," and "public 
35.18 	record," means information that is inscribed on a tangible medium or that is stored in an 
35.19 	electronic or other medium and is retrievable in perceivable form. 
35.20 	(28) "Sale" includes every contract of sale, contract to sell, or disposition of, a 
35.21 	security or interest in a security for value, and "offer to sell" includes every attempt or 
35.22 	offer to dispose of, or solicitation of an offer to purchase, a security or interest in a 
35.23 	security for value. 
35.24 	(A) A security given or delivered with, or as a bonus on account of, any purchase of 
35.25 	securities or any other thing is considered to constitute part of the subject of the purchase 
35.26 	and to have been offered and sold for value. 
35.27 	(B) A gift of assessable stock is considered to involve an offer and sale. 
35.28 	(C) A sale or offer of a warrant or right to purchase or subscribe to another security 
35.29 	of the same or another issuer and a sale or offer of a security that gives the holder a present 
35.30 	or future right or privilege to convert the security into another security of the same or 
35.31 	another issuer, are each considered to include an offer of the other security. 
35.32 	(29) "Securities and Exchange Commission" means the United States Securities and 
35.33 	Exchange Commission. 
35.34 	(30) "Security" means a note; stock; treasury stock; security future; bond; debenture; 
35.35 	evidence of indebtedness; certificate of interest or participation in a profit-sharing 
35.36 	agreement; collateral trust certificate; preorganization certificate or subscription; 
36.1 	transferable share; investment contract; voting trust certificate; certificate of deposit for a 
36.2 	security; fractional undivided interest in oil, gas, or other mineral rights; put, call, straddle, 
36.3 	option, or privilege on a security, certificate of deposit, or group or index of securities, 
36.4 	including an interest therein or based on the value thereof; put, call, straddle, option, or 
36.5 	privilege entered into on a national securities exchange relating to foreign currency; or, 
36.6 	in general, an interest or instrument commonly known as a "security"; or a certificate of 
36.7 	interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or 
36.8 	warrant or right to subscribe to or purchase, any of the foregoing.  The term: 
36.9 	(A) includes both a certificated and an uncertificated security; 
36.10 	(B) does not include an insurance or endowment policy or annuity contract under 
36.11 	which an insurance company promises to pay a fixed or variable sum of money either in a 
36.12 	lump sum or periodically for life or other specified period; 
36.13 	(C) does not include an interest in a contributory or noncontributory pension or 
36.14 	welfare plan subject to the Employee Retirement Income Security Act of 1974; 
36.15 	(D)  includes as an "investment contract," among other contracts, an interest in 
36.16 	a limited partnership and a limited liability company and an investment in a viatical 
36.17 	settlement or similar agreement; and 
36.18 	(E) does not include any equity interest of a closely held corporation or other entity 
36.19 	with not more than 35 holders of the equity interest of such entity offered or sold pursuant 
36.20 	to a transaction in which 100 percent of the equity interest of such entity is sold as a means 
36.21 	to effect the sale of the business of the entity if the transaction has been negotiated on 
36.22 	behalf of all purchasers and if all purchasers have access to inside information regarding 
36.23 	the entity before consummating the transaction. 
36.24 	(31) "Self-regulatory organization" means a national securities exchange registered 
36.25 	under the Securities Exchange Act of 1934, a national securities association of 
36.26 	broker-dealers registered under the Securities Exchange Act of 1934, a clearing agency 
36.27 	registered under the Securities Exchange Act of 1934, or the Municipal Securities 
36.28 	Rulemaking Board established under the Securities Exchange Act of 1934. 
36.29 	(32) "Sign" means, with present intent to authenticate or adopt a record: 
36.30 	(A) to execute or adopt a tangible symbol; or 
36.31 	(B) to attach or logically associate with the record an electronic symbol, sound, 
36.32 	or process. 
36.33 	(33) "State" means a state of the United States, the District of Columbia, Puerto 
36.34 	Rico, the United States Virgin Islands, or any territory or insular possession subject to the 
36.35 	jurisdiction of the United States. 
37.1 	(34) "Associated with" with respect to a person means any partner, officer, director, 
37.2 	or manager of such person or any person occupying a similar status or performing 
37.3 	similar functions or any person directly or indirectly controlling, controlled by, or in 
37.4 	common control with, such person, but does not include a person whose primary duties 
37.5 	are ministerial or clerical.  

37.6 	Sec. 40. Minnesota Statutes 2008, section 80A.46, is amended to read:
37.7 	80A.46 SECTION 202; EXEMPT TRANSACTIONS. 
37.8 	The following transactions are exempt from the requirements of sections 80A.49 
37.9 	through 80A.54 and 80A.71: 
37.10 	(1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers 
37.11 	in Minnesota during any period of 12 consecutive months, whether effected by or through 
37.12 	a broker-dealer or not; 
37.13 	(2) a nonissuer transaction by or through a broker-dealer registered, or exempt from 
37.14 	registration under this chapter, and a resale transaction by a sponsor of a unit investment 
37.15 	trust registered under the Investment Company Act of 1940, in a security of a class that 
37.16 	has been outstanding in the hands of the public for at least 90 days, if, at the date of 
37.17 	the transaction: 
37.18 	(A) the issuer of the security is engaged in business, the issuer is not in the 
37.19 	organizational stage or in bankruptcy or receivership, and the issuer is not a blank check, 
37.20 	blind pool, or shell company that has no specific business plan or purpose or has indicated 
37.21 	that its primary business plan is to engage in a merger or combination of the business with, 
37.22 	or an acquisition of, an unidentified person; 
37.23 	(B) the security is sold at a price reasonably related to its current market price; 
37.24 	(C) the security does not constitute the whole or part of an unsold allotment to, or 
37.25 	a subscription or participation by, the broker-dealer as an underwriter of the security 
37.26 	or a redistribution; 
37.27 	(D) a nationally recognized securities manual or its electronic equivalent designated 
37.28 	by rule adopted or order issued under this chapter or a record filed with the Securities and 
37.29 	Exchange Commission that is publicly available contains: 
37.30 	(i) a description of the business and operations of the issuer; 
37.31 	(ii) the names of the issuer's executive officers and the names of the issuer's 
37.32 	directors, if any; 
37.33 	(iii) an audited balance sheet of the issuer as of a date within 18 months before the 
37.34 	date of the transaction or, in the case of a reorganization or merger when the parties to 
38.1 	the reorganization or merger each had an audited balance sheet, a pro forma balance 
38.2 	sheet for the combined organization; and 
38.3 	(iv) an audited income statement for each of the issuer's two immediately previous 
38.4 	fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case 
38.5 	of a reorganization or merger when each party to the reorganization or merger had audited 
38.6 	income statements, a pro forma income statement; and 
38.7 	(E) any one of the following requirements is met: 
38.8 	(i) the issuer of the security has a class of equity securities listed on a national 
38.9 	securities exchange registered under Section 6 of the Securities Exchange Act of 1934 
38.10 	or designated for trading on the National Association of Securities Dealers Automated 
38.11 	Quotation System; 
38.12 	(ii) the issuer of the security is a unit investment trust registered under the Investment 
38.13 	Company Act of 1940; 
38.14 	(iii) the issuer of the security, including its predecessors, has been engaged in 
38.15 	continuous business for at least three years; or 
38.16 	(iv) the issuer of the security has total assets of at least $2,000,000 based on an 
38.17 	audited balance sheet as of a date within 18 months before the date of the transaction or, in 
38.18 	the case of a reorganization or merger when the parties to the reorganization or merger 
38.19 	each had such an audited balance sheet, a pro forma balance sheet for the combined 
38.20 	organization; 
38.21 	(3) a nonissuer transaction by or through a broker-dealer registered or exempt from 
38.22 	registration under this chapter in a security of a foreign issuer that is a margin security 
38.23 	defined in regulations or rules adopted by the Board of Governors of the Federal Reserve 
38.24 	System; 
38.25 	(4) a nonissuer transaction by or through a broker-dealer registered or exempt 
38.26 	from registration under this chapter in an outstanding security if the guarantor of the 
38.27 	security files reports with the Securities and Exchange Commission under the reporting 
38.28 	requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 
38.29 	Sections 78m or 78o(d)); 
38.30 	(5) a nonissuer transaction by or through a broker-dealer registered or exempt from 
38.31 	registration under this chapter in a security that: 
38.32 	(A) is rated at the time of the transaction by a nationally recognized statistical rating 
38.33 	organization in one of its four highest rating categories; or 
38.34 	(B) has a fixed maturity or a fixed interest or dividend, if: 
39.1 	(i) a default has not occurred during the current fiscal year or within the three 
39.2 	previous fiscal years or during the existence of the issuer and any predecessor if less than 
39.3 	three fiscal years, in the payment of principal, interest, or dividends on the security; and 
39.4 	(ii) the issuer is engaged in business, is not in the organizational stage or in 
39.5 	bankruptcy or receivership, and is not and has not been within the previous 12 months a 
39.6 	blank check, blind pool, or shell company that has no specific business plan or purpose or 
39.7 	has indicated that its primary business plan is to engage in a merger or combination of the 
39.8 	business with, or an acquisition of, an unidentified person; 
39.9 	(6) a nonissuer transaction by or through a broker-dealer registered or exempt from 
39.10 	registration under this chapter effecting an unsolicited order or offer to purchase; 
39.11 	(7) a nonissuer transaction executed by a bona fide pledgee without the purpose 
39.12 	of evading this chapter; 
39.13 	(8) a nonissuer transaction by a federal covered investment adviser with investments 
39.14 	under management in excess of $100,000,000 acting in the exercise of discretionary 
39.15 	authority in a signed record for the account of others; 
39.16 	(9) a transaction in a security, whether or not the security or transaction is otherwise 
39.17 	exempt, in exchange for one or more bona fide outstanding securities, claims, or property 
39.18 	interests, or partly in such exchange and partly for cash, if the terms and conditions of 
39.19 	the issuance and exchange or the delivery and exchange and the fairness of the terms and 
39.20 	conditions have been approved by the administrator after a hearing; 
39.21 	(10) a transaction between the issuer or other person on whose behalf the offering is 
39.22 	made and an underwriter, or among underwriters; 
39.23 	(11) a transaction in a note, bond, debenture, or other evidence of indebtedness 
39.24 	secured by a mortgage or other security agreement if: 
39.25 	(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold 
39.26 	with the mortgage or other security agreement as a unit; 
39.27 	(B) a general solicitation or general advertisement of the transaction is not made; and 
39.28 	(C) a commission or other remuneration is not paid or given, directly or indirectly, to 
39.29 	a person not registered under this chapter as a broker-dealer or as an agent; 
39.30 	(12) a transaction by an executor, administrator of an estate, sheriff, marshal, 
39.31 	receiver, trustee in bankruptcy, guardian, or conservator; 
39.32 	(13) a sale or offer to sell to: 
39.33 	(A) an institutional investor; 
39.34 	(B) an accredited investor; 
39.35 	(C) a federal covered investment adviser; or 
39.36 	(D) any other person exempted by rule adopted or order issued under this chapter; 
40.1 	(14) a sale or an offer to sell securities by an issuer, if the transaction is part of 
40.2 	a single issue in which: 
40.3 	(A) not more than 35 purchasers are present in this state during any 12 consecutive 
40.4 	months, other than those designated in paragraph (13); 
40.5 	(B) a general solicitation or general advertising is not made in connection with 
40.6 	the offer to sell or sale of the securities; 
40.7 	(C) a commission or other remuneration is not paid or given, directly or indirectly, to 
40.8 	a person other than a broker-dealer registered under this chapter or an agent registered 
40.9 	under this chapter for soliciting a prospective purchaser in this state; and 
40.10 	(D) the issuer reasonably believes that all the purchasers in this state, other than 
40.11 	those designated in paragraph (13), are purchasing for investment. 
40.12 	Any issuer selling to purchasers in this state in reliance on this clause (14) exemption 
40.13 	must provide to the administrator notice of the transaction by filing a statement of issuer 
40.14 	form as adopted by rule. Notice must be filed at least ten days in advance of any sale or 
40.15 	such shorter period as permitted by the administrator. However, an issuer who makes sales 
40.16 	to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not 
40.17 	required to provide this notice; 
40.18 	(15) a transaction under an offer to existing security holders of the issuer, including 
40.19 	persons that at the date of the transaction are holders of convertible securities, options, 
40.20 	or warrants, if a commission or other remuneration, other than a standby commission, is 
40.21 	not paid or given, directly or indirectly, for soliciting a security holder in this state. The 
40.22 	person making the offer and effecting the transaction must provide to the administrator 
40.23 	notice of the transaction by filing a written description of the transaction. Notice must be 
40.24 	filed at least ten days in advance of any transaction or such shorter period as permitted by 
40.25 	the administrator; 
40.26 	(16) an offer to sell, but not a sale, of a security not exempt from registration under 
40.27 	the Securities Act of 1933 if: 
40.28 	(A) a registration or offering statement or similar record as required under the 
40.29 	Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance 
40.30 	with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and 
40.31 	(B) a stop order of which the offeror is aware has not been issued against the offeror 
40.32 	by the administrator or the Securities and Exchange Commission, and an audit, inspection, 
40.33 	or proceeding that is public and that may culminate in a stop order is not known by the 
40.34 	offeror to be pending; 
40.35 	(17) an offer to sell, but not a sale, of a security exempt from registration under the 
40.36 	Securities Act of 1933 if: 
41.1 	(A) a registration statement has been filed under this chapter, but is not effective; 
41.2 	(B) a solicitation of interest is provided in a record to offerees in compliance with a 
41.3 	rule adopted by the administrator under this chapter; and 
41.4 	(C) a stop order of which the offeror is aware has not been issued by the administrator 
41.5 	under this chapter and an audit, inspection, or proceeding that may culminate in a stop 
41.6 	order is not known by the offeror to be pending; 
41.7 	(18) a transaction involving the distribution of the securities of an issuer to the 
41.8 	security holders of another person in connection with a merger, consolidation, exchange 
41.9 	of securities, sale of assets, or other reorganization to which the issuer, or its parent 
41.10 	or subsidiary and the other person, or its parent or subsidiary, are parties. The person 
41.11 	distributing the issuer's securities must provide to the administrator notice of the 
41.12 	transaction by filing a written description of the transaction along with a consent to service 
41.13 	of process complying with section 80A.88. Notice must be filed at least ten days in 
41.14 	advance of any transaction or such shorter period as permitted by the administrator; 
41.15 	(19) a rescission offer, sale, or purchase under section 80A.77;. The person making 
41.16 	the rescission offer must provide to the administrator notice of the transaction by filing a 
41.17 	written description of the transaction and a copy of the record that must be delivered to the 
41.18 	offeree under section 80A.77. Notice must be filed at least ten days in advance of any 
41.19 	rescission offer under section 80A.77 or a shorter period as permitted by the administrator;
41.20 	(20) an offer or sale of a security to a person not a resident of this state and not 
41.21 	present in this state if the offer or sale does not constitute a violation of the laws of the 
41.22 	state or foreign jurisdiction in which the offeree or purchaser is present and is not part of 
41.23 	an unlawful plan or scheme to evade this chapter; 
41.24 	(21) employees' stock purchase, savings, option, profit-sharing, pension, or 
41.25 	similar employees' benefit plan, including any securities, plan interests, and guarantees 
41.26 	issued under a compensatory benefit plan or compensation contract, contained in a 
41.27 	record, established by the issuer, its parents, its majority-owned subsidiaries, or the 
41.28 	majority-owned subsidiaries of the issuer's parent for the participation of their employees 
41.29 	including offers or sales of such securities to: 
41.30 	(A) directors; general partners; trustees, if the issuer is a business trust; officers; 
41.31 	consultants; and advisors; 
41.32 	(B) family members who acquire such securities from those persons through gifts or 
41.33 	domestic relations orders; 
41.34 	(C) former employees, directors, general partners, trustees, officers, consultants, and 
41.35 	advisors if those individuals were employed by or providing services to the issuer when 
41.36 	the securities were offered; and 
42.1 	(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's 
42.2 	subsidiaries or parents, or who derive more than 50 percent of their annual income from 
42.3 	those organizations. 
42.4 	A person establishing an employee benefit plan under the exemption in this clause 
42.5 	(21) must provide to the administrator notice of the transaction by filing a written 
42.6 	description of the transaction along with a consent to service of process complying with 
42.7 	section 80A.88. Notice must be filed at least ten days in advance of any transaction or 
42.8 	such shorter period as permitted by the administrator; 
42.9 	(22) a transaction involving: 
42.10 	(A) a stock dividend or equivalent equity distribution, whether the corporation or 
42.11 	other business organization distributing the dividend or equivalent equity distribution is 
42.12 	the issuer or not, if nothing of value is given by stockholders or other equity holders for 
42.13 	the dividend or equivalent equity distribution other than the surrender of a right to a cash 
42.14 	or property dividend if each stockholder or other equity holder may elect to take the 
42.15 	dividend or equivalent equity distribution in cash, property, or stock; 
42.16 	(B) an act incident to a judicially approved reorganization in which a security is 
42.17 	issued in exchange for one or more outstanding securities, claims, or property interests, or 
42.18 	partly in such exchange and partly for cash; or 
42.19 	(C) the solicitation of tenders of securities by an offeror in a tender offer in 
42.20 	compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162); 
42.21 	(23) a nonissuer transaction in an outstanding security by or through a broker-dealer 
42.22 	registered or exempt from registration under this chapter, if the issuer is a reporting 
42.23 	issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order 
42.24 	issued under this chapter; has been subject to continuous reporting requirements in the 
42.25 	foreign jurisdiction for not less than 180 days before the transaction; and the security is 
42.26 	listed on the foreign jurisdiction's securities exchange that has been designated by this 
42.27 	paragraph or by rule adopted or order issued under this chapter, or is a security of the same 
42.28 	issuer that is of senior or substantially equal rank to the listed security or is a warrant or 
42.29 	right to purchase or subscribe to any of the foregoing.  For purposes of this paragraph, 
42.30 	Canada, together with its provinces and territories, is a designated foreign jurisdiction 
42.31 	and The Toronto Stock Exchange, Inc., is a designated securities exchange.  After an 
42.32 	administrative hearing in compliance with chapter 14, the administrator, by rule adopted 
42.33 	or order issued under this chapter, may revoke the designation of a securities exchange 
42.34 	under this paragraph, if the administrator finds that revocation is necessary or appropriate 
42.35 	in the public interest and for the protection of investors; 
43.1 	(24) any transaction effected by or through a Canadian broker-dealer exempted from 
43.2 	broker-dealer registration pursuant to section 80A.56(b)(3); or 
43.3 	(25)(A) the offer and sale by a cooperative organized under chapter 308A, or 
43.4 	under the laws of another state, of its securities when the securities are offered and sold 
43.5 	only to its members, or when the purchase of the securities is necessary or incidental to 
43.6 	establishing membership in the cooperative, or when the securities are issued as patronage 
43.7 	dividends. This paragraph applies to a cooperative organized under chapter 308A, or under 
43.8 	the laws of another state, only if the cooperative has filed with the administrator a consent 
43.9 	to service of process under section 80A.88 and has, not less than ten days before the 
43.10 	issuance or delivery, furnished the administrator with a written general description of the 
43.11 	transaction and any other information that the administrator requires by rule or otherwise; 
43.12 	(B) the offer and sale by a cooperative organized under chapter 308B of its securities 
43.13 	when the securities are offered and sold to its existing members or when the purchase of the 
43.14 	securities is necessary or incidental to establishing patron membership in the cooperative, 
43.15 	or when such securities are issued as patronage dividends. The administrator has the 
43.16 	power to define "patron membership" for purposes of this paragraph. This paragraph 
43.17 	applies to securities, other than securities issued as patronage dividends, only when: 
43.18 	(i) the issuer, before the completion of the sale of the securities, provides each 
43.19 	offeree or purchaser disclosure materials that, to the extent material to an understanding of 
43.20 	the issuer, its business, and the securities being offered, substantially meet the disclosure 
43.21 	conditions and limitations found in rule 502(b) of Regulation D promulgated by the 
43.22 	Securities and Exchange Commission, Code of Federal Regulations, title 17, section 
43.23 	230.502; and 
43.24 	(ii) within 15 days after the completion of the first sale in each offering completed in 
43.25 	reliance upon this exemption, the cooperative has filed with the administrator a consent to 
43.26 	service of process under section 80A.88 (or has previously filed such a consent), and has 
43.27 	furnished the administrator with a written general description of the transaction and any 
43.28 	other information that the administrator requires by rule or otherwise; and 
43.29 	(C) a cooperative may, at or about the same time as offers or sales are being 
43.30 	completed in reliance upon the exemptions from registration found in this subpart and as 
43.31 	part of a common plan of financing, offer or sell its securities in reliance upon any other 
43.32 	exemption from registration available under this chapter.  The offer or sale of securities in 
43.33 	reliance upon the exemptions found in this subpart will not be considered or deemed a part 
43.34 	of or be integrated with any offer or sale of securities conducted by the cooperative in 
43.35 	reliance upon any other exemption from registration available under this chapter, nor will 
43.36 	offers or sales of securities by the cooperative in reliance upon any other exemption from 
44.1 	registration available under this chapter be considered or deemed a part of or be integrated 
44.2 	with any offer or sale conducted by the cooperative in reliance upon this paragraph. 

44.3 	Sec. 41. Minnesota Statutes 2008, section 80A.65, subdivision 6, is amended to read:
44.4 		Subd. 6.Rescission offer filing fee. The filing of a rescission offer under section 
44.5 	80A.77 80A.46(19), shall be accompanied by the fees as calculated in subdivision 1.

44.6 	Sec. 42. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision 
44.7 	to read:
44.8 		Subd. 1a.Brokerage; business entity. "Brokerage" or "business entity" means a 
44.9 	corporation, partnership, limited liability company, limited liability partnership, or other 
44.10 	business structure that holds a real estate broker license.

44.11 	Sec. 43. Minnesota Statutes 2008, section 82.17, subdivision 15, is amended to read:
44.12 		Subd. 15.Protective list. "Protective list" means the written list of names and 
44.13 	addresses of prospective purchasersbuyers with whom a licensee has negotiated the sale 
44.14 	or rental of the property or to whom a licensee has exhibited the property before the 
44.15 	expiration of the listing agreement. For the purposes of this subdivision, "property" means 
44.16 	the property that is the subject of the listing agreement in question.

44.17 	Sec. 44. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision 
44.18 	to read:
44.19 		Subd. 20a.Responsible person. "Responsible person" means a natural person that 
44.20 	is an officer of a corporation, a partner of a partnership, a general partner of a limited 
44.21 	liability partnership, or a manager of a limited liability company.

44.22 	Sec. 45. Minnesota Statutes 2008, section 82.19, is amended to read:
44.23 	82.19 COMPENSATION.
44.24 		Subdivision 1.Licensee to receive only from broker. A licensee shall not 
44.25 	accept a commission, compensation, referral fee, or other valuable consideration for the 
44.26 	performance of any acts requiring a real estate license from any person except the real 
44.27 	estate broker to whom the licensee is licensed or to whom the licensee was licensed at the 
44.28 	time of the transaction.
44.29 		Subd. 1a.Commission-splitting, rebates, referral fee, and fees. (a) In connection 
44.30 	with a real estate or business opportunity transaction, a real estate broker or real estate 
44.31 	salesperson shall not offer, pay, or give, and a person shall not accept, any compensation 
45.1 	or other thing of value from a real estate broker or real estate salesperson by way of 
45.2 	commission-splitting, rebate, referral fees, finder's fees, or otherwise.
45.3 	(b) This subdivision does not apply to transactions:
45.4 	(1) between a licensed real estate broker or salesperson and the parties to the 
45.5 	transaction;
45.6 	(2) among persons licensed as provided in this chapter;
45.7 	(3) between a licensed real estate broker or salesperson and persons from other 
45.8 	jurisdictions similarly licensed in that jurisdiction;
45.9 	(4) involving timeshare or other recreational lands where the amount offered or paid 
45.10 	does not exceed $150, and payment is not conditioned upon any sale but is made merely 
45.11 	for providing the referral and the person paying the fee is bound by any representations 
45.12 	made by the person receiving the fee; and
45.13 	(5) involving a person who receives a referral fee from a person or an agent of a 
45.14 	person licensed under this section, provided that in any 12-month period, no recipient may 
45.15 	earn more than the value of one month's rent, that the recipient is a resident of the property 
45.16 	or has lived there within 60 days of the payment of the fee, and that the person paying the 
45.17 	fee is bound by any representations made by the recipient of the fee.
45.18 		Subd. 2.Undisclosed compensation. A licensee shall not accept, give, or charge 
45.19 	any undisclosed compensation or realize any direct or indirect remuneration that inures to 
45.20 	the benefit of the licensee on an expenditure made for a principal.
45.21 		Subd. 2a.Sharing of compensation with other brokers. The seller may, in 
45.22 	the listing agreement, authorize the seller's broker to disburse part of the broker's 
45.23 	compensation to other brokers, including the buyer's brokers solely representing the buyer.
45.24 		Subd. 3.Limitation on broker when transaction not completed. When the owner 
45.25 	fails or is unable to consummate a real estate transaction, through no fault of the purchaser, 
45.26 	the listing broker may not claim any portion of any trust funds deposited with the broker 
45.27 	by the purchaser, absent a separate agreement with the purchaser.
45.28 		Subd. 3a.Directing payment of compensation. A licensed real estate broker 
45.29 	or salesperson may assign or direct that commissions or other compensation earned in 
45.30 	connection with a real estate or business opportunity transaction be paid to a corporation, 
45.31 	limited liability company, or sole proprietorship of which the licensed real estate broker 
45.32 	or salesperson is the sole owner.
45.33 		Subd. 3b.Closing agent fee. A real estate closing agent may not charge a fee for 
45.34 	closing services to a borrower, and a borrower may not be required to pay such a fee at 
45.35 	settlement, if the fee was not previously disclosed in writing at least one business day 
46.1 	before the settlement. This disclosure requirement is satisfied if a disclosure is made or 
46.2 	an estimate given under section 507.45.

46.3 	Sec. 46. Minnesota Statutes 2008, section 82.21, subdivision 2, is amended to read:
46.4 		Subd. 2.Listing agreements. (a) Requirement. Licensees shall obtain a signed 
46.5 	listing agreement or other signed written authorization from the owner of real property or 
46.6 	from another person authorized to offer the property for sale or lease before advertising to 
46.7 	the general public that the real property is available for sale or lease. 
46.8 	For the purposes of this section "advertising" includes placing a sign on the owner's 
46.9 	property that indicates that the property is being offered for sale or lease.
46.10 	(b) Contents. All listing agreements must be in writing and must include: 
46.11 	(1) a definite expiration date;
46.12 	(2) a description of the real property involved;
46.13 	(3) the list price and any terms required by the seller;
46.14 	(4) the amount of any compensation or commission or the basis for computing 
46.15 	the commission;
46.16 	(5) a clear statement explaining the events or conditions that will entitle a broker to 
46.17 	a commission;
46.18 	(6) a clear statement explaining if the agreement may be canceled and the terms 
46.19 	under which the agreement may be canceled;
46.20 	(6)(7) information regarding an override clause, if applicable, including a statement 
46.21 	to the effect that the override clause will not be effective unless the licensee supplies the 
46.22 	seller with a protective list within 72 hours after the expiration of the listing agreement;
46.23 	(7)(8) the following notice in not less than ten point boldface type immediately 
46.24 	preceding any provision of the listing agreement relating to compensation of the licensee:
46.25 	"NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR 
46.26 	MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN 
46.27 	EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";
46.28 	(8)(9) for residential property listings, the following "dual agency" disclosure 
46.29 	statement:
46.30 	If a buyer represented by broker wishes to buy the seller's property, a dual agency 
46.31 	will be created. This means that broker will represent both the seller(s) and the buyer(s), 
46.32 	and owe the same duties to the buyer(s) that broker owes to the seller(s). This conflict 
46.33 	of interest will prohibit broker from advocating exclusively on the seller's behalf. Dual 
46.34 	agency will limit the level of representation broker can provide. If a dual agency should 
46.35 	arise, the seller(s) will need to agree that confidential information about price, terms, and 
47.1 	motivation will still be kept confidential unless the seller(s) instruct broker in writing to 
47.2 	disclose specific information about the seller(s). All other information will be shared. 
47.3 	Broker cannot act as a dual agent unless both the seller(s) and the buyer(s) agree to it. By 
47.4 	agreeing to a possible dual agency, the seller(s) will be giving up the right to exclusive 
47.5 	representation in an in-house transaction. However, if the seller(s) should decide not to 
47.6 	agree to a possible dual agency, and the seller(s) want broker to represent the seller(s), the 
47.7 	seller(s) may give up the opportunity to sell the property to buyers represented by broker.
47.8 	Seller's Instructions to Broker
47.9 	Having read and understood this information about dual agency, seller(s) now 
47.10 	instructs broker as follows:

47.11
47.12	........
		Seller(s) will agree to a dual agency representation and will consider 
offers made by buyers represented by broker.
	
47.13
47.14	........
		Seller(s) will not agree to a dual agency representation and will not 
consider offers made by buyers represented by broker.

47.15	........
		........
	
47.16	Seller
		Real Estate Company Name

47.17	........
		By:
	........
	
47.18	Seller
			Salesperson
	
47.19	Date : ........;
				
47.20 	(9)(10) a notice requiring the seller to indicate in writing whether it is acceptable to 
47.21 	the seller to have the licensee arrange for closing services or whether the seller wishes to 
47.22 	arrange for others to conduct the closing; and
47.23 	(10)(11) for residential listings, a notice stating that after the expiration of the 
47.24 	listing agreement, the seller will not be obligated to pay the licensee a fee or commission 
47.25 	if the seller has executed another valid listing agreement pursuant to which the seller is 
47.26 	obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of 
47.27 	the real property in question. This notice may be used in the listing agreement for any 
47.28 	other type of real estate.
47.29 	(c) Prohibited provisions. Except as otherwise provided in paragraph (d), clause 
47.30 	(2), licensees shall not include in a listing agreement a holdover clause, automatic 
47.31 	extension, or any similar provision, or an override clause the length of which is more than 
47.32 	six months after the expiration of the listing agreement.
47.33 	(d) Override clauses. (1) Licensees shall not seek to enforce an override clause 
47.34 	unless a protective list has been furnished to the seller within 72 hours after the expiration 
47.35 	of the listing agreement.
47.36 	(2) A listing agreement may contain an override clause of up to two years in length 
47.37 	when used in conjunction with the purchase or sale of a business. The length of the 
48.1 	override clause must be negotiable between the licensee and the seller of the business. The 
48.2 	protective list provided in connection with the override clause must include the written 
48.3 	acknowledgment of each party named on the protective list, that the business which is the 
48.4 	subject of the listing agreement was presented to that party by the licensee.
48.5 	(e) Protective lists. A broker or salesperson has the burden of demonstrating that 
48.6 	each person on the protective list has, during the period of the listing agreement, either 
48.7 	made an affirmative showing of interest in the property by responding to an advertisement 
48.8 	or by contacting the broker or salesperson involved or has been physically shown the 
48.9 	property by the broker or salesperson. For the purpose of this section, the mere mailing or 
48.10 	other distribution by a licensee of literature setting forth information about the property in 
48.11 	question does not, of itself, constitute an affirmative showing of interest in the property on 
48.12 	the part of a subsequent purchaser.
48.13 	For listings of nonresidential real property which do not contain the notice described 
48.14 	in paragraph (b), clause (10) (11), the protective list must contain the following notice in 
48.15 	boldface type:
48.16 	"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE 
48.17 	PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME 
48.18 	APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS 
48.19 	TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK 
48.20 	COMPETENT ADVICE."

48.21 	Sec. 47. Minnesota Statutes 2008, section 82.24, subdivision 3, is amended to read:
48.22 		Subd. 3.Broker payment consolidation. For all license renewal fees, recovery 
48.23 	fund renewal fees, and recovery fund assessments pursuant to this section and section 
48.24 	82.43, the broker must remit the fees or assessments for the company, broker, and all 
48.25 	salespersons licensed to the broker, in the form of a single check payment.  

48.26 	Sec. 48. Minnesota Statutes 2008, section 82.29, subdivision 4, is amended to read:
48.27 		Subd. 4.Broker's examination. (a) The examination for a real estate broker's 
48.28 	license shall be more exacting than that for a real estate salesperson, and shall require a 
48.29 	higher degree of knowledge of the fundamentals of real estate practice and law.
48.30 	(b) Every application for a broker's examination shall be accompanied by proof that 
48.31 	the applicant has had a minimum of two years of actual experience within the previous 
48.32 	five-year period prior to application as a licensed real estate salesperson in this or in 
48.33 	another state having comparable requirements or is, in the opinion of the commissioner, 
49.1 	otherwise or similarly qualified by reason of education or practical experience. The 
49.2 	applicant shall have completed educational requirements in accordance with subdivision 8. 
49.3 	(c) An applicant for a limited broker's license pursuant to section 82.34, subdivision 
49.4 	13, shall not be required to have a minimum of two years of actual experience as a real 
49.5 	estate person in order to obtain a limited broker's license to act as principal only. 

49.6 	Sec. 49. Minnesota Statutes 2008, section 82.29, subdivision 5, is amended to read:
49.7 		Subd. 5.Waivers. The commissioner may waivegrant a waiver of the real estate 
49.8 	licensing experience requirement for the broker's examination to a qualified applicant for 
49.9 	a waiver.
49.10 	(a) AnA qualified applicant for a waiver shall provide evidence of is an individual 
49.11 	who:
49.12 	(1) successful completion of a minimum of 90 quarter credits or 270 classroom 
49.13 	hours of real estate-related studies has a degree in real estate from an accredited college 
49.14 	or university;
49.15 	(2) a minimum of five consecutive years of practical experience in real estate-related 
49.16 	areas is a licensed practicing attorney whose practice involves real estate law; or
49.17 	(3) successful completion of 30 credits or 90 classroom hours and three consecutive 
49.18 	years of practical experience in real estate-related areas is a public officer whose official 
49.19 	duties involve real estate law or real estate transactions.
49.20 	(b) A request for a waiver shall be submitted to the commissioner in writing on a 
49.21 	form prescribed by the commissioner and be accompanied by documents necessary to 
49.22 	evidence qualification as set forth in paragraph (a).
49.23 	(c) The waiver will lapse if the applicant fails to successfully complete the broker's 
49.24 	examination within one year from the date of the granting of the waiver.

49.25 	Sec. 50. Minnesota Statutes 2008, section 82.29, subdivision 8, is amended to read:
49.26 		Subd. 8.Instruction; new licenses. (a) Every An applicant for a salesperson's 
49.27 	license shall be required to successfully complete a course of study in the real estate field 
49.28 	consisting of 30 hours of instruction approved by the commissioner before taking the 
49.29 	examination specified in subdivision 1. Every An applicant for a salesperson's license 
49.30 	shall be required to successfully complete an additional course of study in the real estate 
49.31 	field consisting of 60 hours of instruction approved by the commissioner, of which three 
49.32 	hours shall consist of training in state and federal fair housing laws, regulations, and 
49.33 	rules, and of which two hours must consist of training in laws and regulations on agency 
50.1 	representation and disclosure, before filing an application for the license. This subdivision 
50.2 	does not apply to salespeople licensed in Minnesota before July 1, 1969.
50.3 	(b) An applicant for a broker's license must successfully complete a course of study 
50.4 	in the real estate field consisting of 30 hours of instruction approved by the commissioner, 
50.5 	of which three hours shall consist of training in state and federal fair housing laws, 
50.6 	regulations, and rules. The course must have been completed within 12 months prior to 
50.7 	the date of application for the broker's license.
50.8 	(c) An applicant for a real estate closing agent's license must successfully complete 
50.9 	a course of study relating to closing services consisting of eight hours of instruction 
50.10 	approved by the commissioner.

50.11 	Sec. 51. Minnesota Statutes 2008, section 82.31, subdivision 1, is amended to read:
50.12 		Subdivision 1.Qualification of applicants. Every An applicant for a real estate 
50.13 	broker,or real estate salesperson, or real estate closing agent license shall be at least 18 
50.14 	years of age at the time of making application for said license.

50.15 	Sec. 52. Minnesota Statutes 2008, section 82.31, subdivision 2, is amended to read:
50.16 		Subd. 2.Application for license; contents. (a) Every An applicant for a license 
50.17 	as a real estate broker,or real estate salesperson, or closing agent shall make an 
50.18 	application in writing upon forms prepared and furnishedthe format prescribed by the 
50.19 	commissioner. Each The application shall be signed and sworn to by the applicant and 
50.20 	shall be accompanied by the license fee required by this chapter.
50.21 	(b) Each application for a real estate broker license,or real estate salesperson 
50.22 	license, or real estate closing agent license shall contain such information as required 
50.23 	by the commissioner consistent with the administration of the provisions and purposes 
50.24 	of this chapter.
50.25 	(c) Each The application for a real estate salesperson license shall give the applicant's 
50.26 	legal name, age, residence address, and the name and place of business of the real estate 
50.27 	broker on whose behalf the salesperson is to be acting.
50.28 	(d) Each application for a real estate closing agent license shall give the applicant's 
50.29 	name, age, residence address, and the name and place of business of the closing agent.
50.30 	(e)(d) The commissioner may require such further information as the commissioner 
50.31 	deems appropriate to administer the provisions and further the purposes of this chapter.
50.32 	(f) Applicants (e) An applicant for a real estate salesperson license shall submit 
50.33 	to the commissioner, along with the application for licensure, a copy of the course 
50.34 	completion certificate for courses I, II, and III and passing examination results.

51.1 	Sec. 53. Minnesota Statutes 2009 Supplement, section 82.31, subdivision 4, is 
51.2 	amended to read:
51.3 		Subd. 4.Corporate and partnership Business entity; brokerage licenses.
 51.4 	(a) A corporation business entity applying for a license shall have at least one officer
51.5 	responsible person individually licensed to act as broker for the corporation brokerage. 
51.6 	The corporation business entity broker's license shall extend no authority to act as broker 
51.7 	to any person other than the corporate business entity. Each officer responsible person
51.8 	who intends to act as a broker shall obtain a license.
51.9 	(b) A partnership business entity applying for a license shall have at least one partner
51.10 	responsible person individually licensed to act as broker for the partnership business entity. 
51.11 	Each partner responsible person who intends to act as a broker shall obtain a license.
51.12 	(c) Applications An application for a business entity license made by a corporation 
51.13 	shall be verified by the president and one other officer. Applications made by a partnership
51.14 	shall be verified by at least two partners responsible persons for the business entity.
51.15 	(d) Any partner or officer A responsible person who ceases to act as broker for 
51.16 	a partnership or corporation business entity shall notify the commissioner upon said 
51.17 	termination. The individual licenses of all salespersons acting on behalf of a corporation 
51.18 	or partnership,brokerage are automatically ineffective upon the revocation or suspension 
51.19 	of the license of the partnership or corporation brokerage. The commissioner may suspend 
51.20 	or revoke the license of an officer or partner a responsible person licensee without 
51.21 	suspending or revoking the license of the corporation or partnership business entity.
51.22 	(e) The application of all officersresponsible persons of a corporation or partners 
51.23 	in a partnership business entity who intend to act as a broker brokers on behalf of a 
51.24 	corporation or partnership business entity shall accompany the initial license application 
51.25 	of the corporation or partnership business entity. Officers or partners Responsible persons
51.26 	intending to act as brokers subsequent to the licensing of the corporation or partnership
51.27 	business entity shall procure an individual real estate broker's license prior to acting in the 
51.28 	capacity of a broker. No corporate officer, or partner, responsible person who maintains a 
51.29 	salesperson's license may exercise any authority over any trust account administered by 
51.30 	the broker nor may they be vested with any supervisory authority over the broker.
51.31 	(f) The corporation or partnership business entity applicant shall make available 
51.32 	upon request, such records and data required by the commissioner for enforcement 
51.33 	of this chapter.
51.34 	(g) The commissioner may require further information, as the commissioner deems 
51.35 	appropriate, to administer the provisions and further the purposes of this chapter.

52.1 	Sec. 54. Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:
52.2 	82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.
52.3 	(a) All real estate salespersons and all real estate brokers shall be required to 
52.4 	successfully complete 30 hours of real estate continuing education, either as a student or 
52.5 	a lecturer, in courses of study approved by the commissioner, during the initial license 
52.6 	period and during each succeeding 24-month license period. At least 15 of the 30 credit 
52.7 	hours must be completed during the first 12 months of the 24-month licensing period. 
52.8 	Licensees may not claim credit for continuing education not actually completed as of the 
52.9 	date their report of continuing education compliance is filed.
52.10 	(b) The commissioner may adopt rules defining the standards for course and 
52.11 	instructor approval, and may adopt rules for the proper administration of prelicense 
52.12 	instruction as required under section 82.29, subdivision 8, and continuing education as 
52.13 	required under this section and sections 82.29; 82.31, subdivisionssubdivision 5 and 6; 
52.14 	82.33, subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course 
52.15 	which can be completed by the student at home or outside the classroom without the 
52.16 	supervision of an instructor except accredited courses using new delivery technology, 
52.17 	including interactive technology, and the Internet. The commissioner may approve 
52.18 	courses of study in the real estate field offered in educational institutions of higher learning 
52.19 	in this state or courses of study in the real estate field developed by and offered under 
52.20 	the auspices of the National Association of Realtors, its affiliates, or private real estate 
52.21 	schools. Courses in motivation, salesmanship, psychology, or time management shall not 
52.22 	be approved by the commissioner for continuing education credit. The commissioner may 
52.23 	approve courses in any other subjects, including, but not limited to, communication, 
52.24 	marketing, negotiation, and technology for continuing education credit. 
52.25 	(c) As part of the continuing education requirements of this section and sections 
52.26 	82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the 
52.27 	commissioner shall require that all real estate brokers and salespersons receive: 
52.28 	(1) at least one hour of training during each license period in courses in laws or 
52.29 	regulations on agency representation and disclosure; and
52.30 	(2) at least one hour of training during each license period in courses in state and 
52.31 	federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses 
52.32 	designed to help licensees to meet the housing needs of immigrant and other underserved 
52.33 	populations.
52.34 	Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers 
52.35 	engaged solely in the commercial real estate business who file with the commissioner 
53.1 	a verification of this status along with the continuing education report required under 
53.2 	paragraph (a).
53.3 	(d) The commissioner is authorized to establish a procedure for renewal of course 
53.4 	accreditation.
53.5 	(e) Approved continuing education courses may be sponsored or offered by a broker 
53.6 	of a real estate company and may be held on the premises of a company licensed under 
53.7 	this chapter. All continuing education course offerings must be open to any interested 
53.8 	individuals. Access may be restricted by the education provider based on class size 
53.9 	only. Courses must not be approved if attendance is restricted to any particular group of 
53.10 	people. A broker must comply with all continuing education rules prescribed by the 
53.11 	commissioner. The commissioner shall not approve any prelicense instruction courses 
53.12 	offered by, sponsored by, or affiliated with any person or company licensed to engage in 
53.13 	the real estate business.
53.14 	(f) Credit may not be earned if the licensee has previously obtained credit for the 
53.15 	same course as either a student or instructor during the same licensing period.
53.16 	(g) The real estate education course completion certificate must be in the form set 
53.17 	forth by the commissioner. Students are responsible for maintaining copies of course 
53.18 	completion certificates.
53.19 	(h) An approved prelicense 30-hour broker course may be used for continuing 
53.20 	education credit by a real estate salesperson or broker if the course is completed during 
53.21 	the appropriate licensing period.

53.22 	Sec. 55. Minnesota Statutes 2008, section 82.33, subdivision 1, is amended to read:
53.23 		Subdivision 1.Duration. No The renewal of a salesperson's license shall be is not
53.24 	effective beyond a date two years after the granting of such the salesperson's license unless 
53.25 	the salesperson has furnished evidence of compliance with section 82.29, subdivision 8. 
53.26 	The commissioner shall cancel the license of any a salesperson who fails to comply with 
53.27 	section 82.29, subdivision 8. This subdivision shall not apply to salespeople licensed in 
53.28 	Minnesota prior to July 1, 1969.

53.29 	Sec. 56. Minnesota Statutes 2008, section 82.33, is amended by adding a subdivision 
53.30 	to read:
53.31 		Subd. 1a.Broker's responsibility. (a) A broker shall renew the license of each 
53.32 	eligible salesperson who is and will continue to be associated with the broker. For 
53.33 	the purposes of this subdivision, an eligible salesperson is one who has demonstrated 
53.34 	compliance with all renewal requirements before June 15 of the renewal year.
54.1 	(b) When a broker does not intend to renew the license of an eligible salesperson 
54.2 	who is associated with the broker, the broker must notify the salesperson in writing 30 
54.3 	days before June 15 of the renewal year.
54.4 	(c) When the broker responsible for the salesperson's license renewal does not renew 
54.5 	an eligible salesperson's license before the renewal deadline, the broker shall pay on the 
54.6 	salesperson's behalf any additional higher license fees that result.

54.7 	Sec. 57. Minnesota Statutes 2008, section 82.33, subdivision 2, is amended to read:
54.8 		Subd. 2.Timely renewals. PersonsA person whose applications haveapplication 
54.9 	for a license renewal has not been properly and timely filed and who havehas not received 
54.10 	notice of denialapproval of renewal are deemed to have been approved for renewal and
54.11 	may not continue to transact business either as a real estate broker, salesperson, or closing 
54.12 	agent whether or not the renewed license has been received on or before July 1after June 
54.13 	30 of the renewal year until approval of renewal is received. Application for renewal of a 
54.14 	license shall be deemed to have been is timely filed if received by the commissioner by, or 
54.15 	mailed with proper postage and postmarked by,:
54.16 	(1) all requirements for renewal, including continuing education requirements, 
54.17 	have been completed by June 15 of the renewal year. Applications for renewal shall be 
54.18 	deemed properly filed if made; and
54.19 	(2) the application is submitted before the renewal deadline in the manner 
54.20 	prescribed by the commissioner upon forms duly executed and sworn to, accompanied 
54.21 	by fees prescribed by this chapter, and containcontaining any information which the 
54.22 	commissioner may require requires.

54.23 	Sec. 58. Minnesota Statutes 2008, section 82.34, subdivision 1, is amended to read:
54.24 		Subdivision 1.Generally. (a) The commissioner shall issue a license as a real estate 
54.25 	broker,or real estate salesperson, or closing agent to any person who qualifies for such
54.26 	the license under the terms of this chapter.
54.27 	(b) The commissioner is authorized to establish by rule a special license for real 
54.28 	estate brokers and real estate salespeople engaged solely in the rental or management of 
54.29 	an interest or estate in real estate, to prescribe qualifications for the license, and to issue 
54.30 	the license consistent with the terms of this chapter. This clause shall not be construed to 
54.31 	require those owners or managers or their agents or employees who are excluded by section 
54.32 	82.23, clause (d), from the definition of real estate broker, to obtain the special license.  

54.33 	Sec. 59. Minnesota Statutes 2008, section 82.34, subdivision 2, is amended to read:
55.1 		Subd. 2.Additional broker's license. An individual who holds a broker's license 
55.2 	in his or her the broker's own name or for or on behalf of a corporation or partnership
55.3 	business entity must be issued an additional broker's license only upon demonstrating:
55.4 	(1) that the additional license is necessary in order to serve a legitimate business 
55.5 	purpose; 
55.6 	(2) that the broker will be capable of supervising all salespersons over whom he or 
55.7 	she the broker will have supervisory responsibility or, in the alternative, that the broker 
55.8 	will have no supervisory responsibilities under the additional license; and 
55.9 	(3) that the broker:
55.10 	(i) has a substantialat least 51 percent ownership interest in each corporation or 
55.11 	partnershipbusiness entity for or on whose behalf he or she the broker holds or will 
55.12 	hold a broker's license.; or
55.13 	(ii) is an elected or appointed officer, signing partner, or managing member of both 
55.14 	the business entity for which or on whose behalf the broker already holds a license, and 
55.15 	an affiliated business entity for which or on whose behalf the broker is applying for an 
55.16 	additional license.
55.17 	The requirement of a substantial ownership interest does not apply where the broker 
55.18 	seeking the additional license or licenses is an officer of a corporation for or on whose 
55.19 	behalf the broker already holds a license and the broker is applying for the additional 
55.20 	license or licenses for or on behalf of an affiliated corporation or corporations of which he 
55.21 	or she is also an officer. For the purpose of this section and sections 82.31, subdivisions 1 
55.22 	to 4; 82.33, subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, "affiliated corporation
55.23 	business entity" means a corporation which is directly or indirectly controlledbusiness 
55.24 	entity that is majority-owned by the same persons as the corporationbusiness entity for 
55.25 	which or on whose behalf the broker is already licensed to act.  
55.26 	For the purposes of this section and sections 82.31, subdivisions 1 to 4; 82.33, 
55.27 	subdivisions 1 to 3; 82.35, subdivision 2; and 82.39, a legitimate business purpose 
55.28 	includes engaging in a different and specialized area of real estate or maintaining an 
55.29 	existing business name.  

55.30 	Sec. 60. Minnesota Statutes 2008, section 82.34, subdivision 4, is amended to read:
55.31 		Subd. 4.Issuance of license; salesperson. A salesperson must be licensed to act 
55.32 	on behalf of a licensed broker and may not be licensed to act on behalf of more than 
55.33 	one broker in this state during the same period of time. The license of each real estate 
55.34 	salesperson shall be mailed to and remain in the possession of the licensed broker with 
56.1 	whom the salesperson is or is to be associated until canceled or until such licensee leaves 
56.2 	such broker.

56.3 	Sec. 61. Minnesota Statutes 2008, section 82.34, subdivision 5, is amended to read:
56.4 		Subd. 5.Effective date of license. Licenses A license renewed pursuant to this 
56.5 	chapter are is valid for a period of 24 months. New licenses A new license issued during a 
56.6 	24-month licensing period will expire on June 30 of the expiration year assigned to the 
56.7 	license. Implementation of the 24-month licensing program must be staggered so that 
56.8 	approximately one-half of the licenses will expire on June 30 of each even-numbered year 
56.9 	and the other one-half on June 30 of each odd-numbered year. Those licensees who will 
56.10 	receive a 12-month license on July 1, 1995, because of the staggered implementation 
56.11 	schedule will pay for the license a fee reduced by an amount equal to one-half the fee 
56.12 	for renewal of the license.

56.13 	Sec. 62. Minnesota Statutes 2008, section 82.34, subdivision 13, is amended to read:
56.14 		Subd. 13.Limited broker's license. (a) The commissioner shall have the authority 
56.15 	to issue a limited real estate broker's license authorizing the licensee to engage in 
56.16 	transactions as principal only. Such license shall be issued only after receipt of the 
56.17 	application described in section 82.31, subdivision 2, and payment of the fee prescribed 
56.18 	by section 82.24, subdivision 1. No salesperson may be licensed to act on behalf of an 
56.19 	individual holding a limited broker's license. An officer of a corporation or partner of a 
56.20 	partnership licensed as a limited broker may act on behalf of that corporation or partnership 
56.21 	without being subject to the licensing requirements. following limited activities:
56.22 	(b) A limited broker's license shall also authorize the licensee to engage in 
56.23 	negotiation of mortgage loans, other than residential mortgage loans, as described in 
56.24 	section 82.17, subdivision 18, clause (b).  
56.25 	(1) the licensee to engage in transactions as principal only; or
56.26 	(2) the licensee to engage in negotiations of mortgage loans, other than residential 
56.27 	mortgage loans, as described in section 82.17, subdivision 18, clause (b).
56.28 	The license may be issued only after receipt of the application described in section 
56.29 	82.31, subdivision 2, and payment of the fee prescribed by section 82.24, subdivision 1. A 
56.30 	salesperson may not be licensed to act on behalf of an individual holding a limited broker's 
56.31 	license. A responsible person of a business entity licensed as a limited broker may act on 
56.32 	behalf of that business entity without being subject to the licensing requirements.

57.1 	Sec. 63. Minnesota Statutes 2008, section 82.39, is amended to read:
57.2 	82.39 NOTICE TO COMMISSIONER.
57.3 		Subdivision 1.Notice Change of application information. Notice in writing 
57.4 	or in the format prescribed by the commissioner shall be given to the commissioner by 
57.5 	each a licensee of any change inof information contained in the license application on file 
57.6 	with the commissioner, including but not limited to personal name, trade name, address or 
57.7 	business location not later than ten days after such the change. The commissioner shall 
57.8 	issue a new license if required for the unexpired period.
57.9 		Subd. 2.Mandatory. Licensees The licensee shall notify the commissioner in 
57.10 	writing or in the format prescribed by the commissioner within ten days of the facts in 
57.11 	subdivisions 3 to 5.
57.12 		Subd. 3.Civil judgment. Licensees The licensee must notify the commissioner 
57.13 	in writing within ten days of a final adverse decision or order of a court, whether or not 
57.14 	the decision or order is appealed, regarding any proceeding in which the licensee was 
57.15 	named as a defendant, and which alleged fraud, misrepresentation, or the conversion of 
57.16 	funds, if the final adverse decision relates to the allegations of fraud, misrepresentation, or 
57.17 	the conversion of funds.
57.18 		Subd. 4.Disciplinary action. The licensee must notify the commissioner in writing 
57.19 	within ten days of the suspension or revocation of the licensee's real estate or other 
57.20 	occupational license issued by this state or another jurisdiction.
57.21 		Subd. 5.Criminal offense. The licensee must notify the commissioner in writing 
57.22 	within ten days if the licensee is charged with, adjudged guilty of, or enters a plea of 
57.23 	guilty or nolo contendere to a charge of any felony, or of any gross misdemeanor alleging 
57.24 	fraud, misrepresentation, conversion of funds, or a similar violation of any real estate 
57.25 	licensing law.

57.26 	Sec. 64. Minnesota Statutes 2008, section 82.41, subdivision 1, is amended to read:
57.27 		Subdivision 1.License required. No person shall act as a real estate broker,
57.28 	or real estate salesperson, or real estate closing agent unless licensed as herein provided
57.29 	in this section.

57.30 	Sec. 65. Minnesota Statutes 2008, section 82.41, subdivision 2, is amended to read:
57.31 		Subd. 2.Misrepresenting status as licensee. No persons shall advertise or 
57.32 	represent themselves to be real estate brokers, salespeople, or closing agents or real estate 
57.33 	salespersons unless licensed as herein provided in this section.

58.1 	Sec. 66. Minnesota Statutes 2008, section 82.41, is amended by adding a subdivision 
58.2 	to read:
58.3 		Subd. 3a.Limitation on broker when transaction not completed. When the 
58.4 	owner fails or is unable to consummate a real estate transaction, through no fault of the 
58.5 	purchaser, the listing broker may not claim any portion of any trust funds deposited with 
58.6 	the broker by the purchaser, absent a separate agreement with the purchaser.

58.7 	Sec. 67. Minnesota Statutes 2008, section 82.45, subdivision 3, is amended to read:
58.8 		Subd. 3.Retention. A licensed real estate broker shall retain for threesix years 
58.9 	copies of all listings, buyer representation and facilitator services contracts, deposit 
58.10 	receipts, purchase money contracts, canceled checks, trust account records, and such 
58.11 	other documents as may reasonably be related to carrying on a real estate brokerage 
58.12 	business. The retention period shall run from the date of the closing of the transaction, 
58.13 	or from the date of the document if the document is not consummated. The following 
58.14 	documents need not be retained:
58.15 	(1) agency disclosure forms provided to prospective buyers or sellers, where no 
58.16 	contractual relationship is subsequently created and no services are provided by the 
58.17 	licensee; and
58.18 	(2) facilitator services contracts or buyer representation contracts entered into with 
58.19 	prospective buyers, where the prospective buyer abandons the contractual relationship 
58.20 	before any services have been provided by the licensee.

58.21 	Sec. 68. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision 
58.22 	to read:
58.23 		Subd. 4.Storage. Storage of documents identified in subdivision 3 may be stored 
58.24 	by electronic means.

58.25 	Sec. 69. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision 
58.26 	to read:
58.27 		Subd. 5.Destruction. After the retention period specified in subdivision 3 has 
58.28 	elapsed and the broker no longer wishes to retain the documents, the broker must ensure 
58.29 	that the documents are disposed of according to the confidential record destruction 
58.30 	procedures of the Fair and Accurate Credit Transaction Act of 2003, Public Law 108-159.

58.31 	Sec. 70. Minnesota Statutes 2008, section 82.48, subdivision 2, is amended to read:
59.1 		Subd. 2.Penalty for noncompliance. The methods, acts, or practices set forth in 
59.2 	subdivisions 1 and 3 and sections 82.19; 82.22; 82.27; 82.31, subdivision 6;82.37; and 
59.3 	82.41, subdivision 11, are standards of conduct governing the activities of real estate 
59.4 	brokers and salespersons. Failure to comply with these standards shall constitute grounds 
59.5 	for license denial, suspension, or revocation, or for censure of the licensee. 

59.6 	Sec. 71. Minnesota Statutes 2008, section 82.48, subdivision 3, is amended to read:
59.7 		Subd. 3.Responsibilities of brokers. (a) Supervision of personnel.Brokers A 
59.8 	broker shall adequately supervise the activities of their the broker's salespersons and 
59.9 	employees. Supervision includes the ongoing monitoring of listing agreements, purchase 
59.10 	agreements, other real estate-related documents which are prepared or drafted by the 
59.11 	broker's salespersons or employees or which are otherwise received by the broker's office, 
59.12 	and the review of all trust account books and records. If an individual broker maintains 
59.13 	more than one place of business, each place of business shall be under the broker's direction 
59.14 	and supervision. If a partnership or corporate brokerbrokerage maintains more than one 
59.15 	place of business, each place of business shall be under the direction and supervision of an 
59.16 	individual broker licensed to act on behalf of the partnership or corporation brokerage. 
59.17 	The primary broker shall maintain records specifying the name of each broker 
59.18 	responsible for the direction and supervision of each place of business. If an individual 
59.19 	broker, who may be the primary broker, is responsible for supervising more than one 
59.20 	place of business, the primary broker shall, upon written request of the commissioner, 
59.21 	file a written statement specifying the procedures which have been established to ensure 
59.22 	that all salespersons and employees are adequately supervised. Designation of another 
59.23 	broker to supervise a place of business does not relieve the primary broker of the ultimate 
59.24 	responsibility for the actions of licensees.
59.25 	(b)  Preparation and safekeeping of documents.Brokers shall be A broker is
59.26 	responsible for the preparation, custody, safety, and accuracy of all real estate contracts, 
59.27 	documents, and records, even though another person may be assigned these duties by 
59.28 	the broker. 
59.29 	(c)  Documentation and resolution of complaints.Brokers A broker shall 
59.30 	investigate and attempt to resolve complaints made regarding the practices of any 
59.31 	individual licensed to them the broker and shall maintain, with respect to each individual 
59.32 	licensed to them the broker, a complaint file containing all material relating to any 
59.33 	complaints received in writing for a period of three years. 
59.34 	(d)  Disclosure of listed property information. A broker may allow any unlicensed 
59.35 	person, who is authorized by the broker, to disclose any factual information pertaining 
60.1 	to the properties listed with the broker, if the factual information is provided to the 
60.2 	unlicensed person in written form by the broker representing or assisting the seller(s). 

60.3 	Sec. 72. [82.52] ADVERTISING REQUIREMENTS.
60.4 	A licensee shall identify himself or herself as either a broker or an agent salesperson 
60.5 	in any advertising for the purchase, sale, lease, exchange, mortgaging, transfer, or other 
60.6 	disposition of real property, whether the advertising pertains to the licensee's own property 
60.7 	or the property of others.
60.8 	If a salesperson or broker is part of a team or group within the brokerage, the licensee 
60.9 	may include the team or group name in the advertising only under the following conditions:
60.10 	(1) the inclusion of the team or group name is authorized by the primary broker of 
60.11 	the brokerage to which the salesperson or broker is licensed; and
60.12 	(2) the real estate brokerage name is included and more prominently displayed than 
60.13 	the team or group name in the advertising.

60.14 	Sec. 73. [82.53] REAL ESTATE CLOSING AGENT LICENSING.
60.15 		Subdivision 1.Generally. The commissioner shall issue a license as a closing agent 
60.16 	to a person who qualifies for the license under the terms of this chapter.
60.17 		Subd. 2.Qualification of applicants. An applicant for a real estate closing agent 
60.18 	license must be at least 18 years of age at the time of making application for the license.
60.19 		Subd. 3.Application for license; contents. (a) An applicant for a real estate closing 
60.20 	agent license shall make an application in the format prescribed by the commissioner. The 
60.21 	application must be accompanied by the license fee required by this chapter.
60.22 	(b) An application for a real estate closing agent license must contain the information 
60.23 	required by the commissioner consistent with this chapter.
60.24 	(c) An application for a real estate closing agent license shall give the applicant's 
60.25 	legal name, age, residence address, and the name and place of business of the closing agent.
60.26 	(d) The commissioner may require further information the commissioner considers 
60.27 	appropriate to administer this chapter.
60.28 		Subd. 4.Instruction. An applicant for a real estate closing agent's license must 
60.29 	successfully complete a course of study relating to closing services consisting of eight 
60.30 	hours of instruction approved by the commissioner.
60.31 		Subd. 5.Change of application information. The commissioner must be notified 
60.32 	in the format prescribed by the commissioner of a change of information contained in the 
60.33 	license application on file with the commissioner within ten days of the change.
61.1 		Subd. 6.Exemption. The following persons, when acting as closing agents, are 
61.2 	exempt from the requirements of sections 82.41 and 82.50 unless otherwise required 
61.3 	in this chapter:
61.4 	(1) a direct employee of a title insurance company authorized to do business in this 
61.5 	state, or a direct employee of a title company, or a person who has an agency agreement 
61.6 	with a title insurance company or a title company in which the agent agrees to perform 
61.7 	closing services on the title insurance company's or title company's behalf and the title 
61.8 	insurance company or title company assumes responsibility for the actions of the agent as 
61.9 	if the agent were a direct employee of the title insurance company or title company;
61.10 	(2) a licensed attorney or a direct employee of a licensed attorney;
61.11 	(3) a licensed real estate broker or salesperson;
61.12 	(4) a direct employee of a licensed real estate broker if the broker maintains all funds 
61.13 	received in connection with the closing services in the broker's trust account;
61.14 	(5) a bank, trust company, savings association, credit union, industrial loan and thrift 
61.15 	company, regulated lender under chapter 56, public utility, or land mortgage or farm loan 
61.16 	association organized under the laws of this state or the United States, when engaged in 
61.17 	the transaction of businesses within the scope of its corporate powers as provided by law;
61.18 	(6) a title insurance company authorized to do business in this state; and
61.19 	(7) a title company that has a contractual agency relationship with a title insurance 
61.20 	company authorized to do business in this state, where the title insurance company 
61.21 	assumes responsibility for the actions of the title company and its employees or agents as 
61.22 	if they were employees or agents of the title insurance company.

61.23 	Sec. 74. [82.54] OTHER DISCLOSURE REQUIREMENTS.
61.24 		Subdivision 1.Agent of broker disclosure. A salesperson shall only conduct 
61.25 	business under the licensed name of and on behalf of the broker to whom the salesperson 
61.26 	is licensed. An individual broker shall only conduct business under the brokerage's 
61.27 	licensed name. A broker licensed to a business entity shall only conduct business under 
61.28 	the licensed business entity name. A licensee shall affirmatively disclose, before the 
61.29 	negotiation or consummation of any transaction, the licensed name of the brokerage under 
61.30 	whom the licensee is authorized to conduct business according to this section.
61.31 		Subd. 2.Financial interests or relative or business associate disclosure; 
61.32 	licensee. (a) Before the negotiation or consummation of any transaction, a licensee shall 
61.33 	affirmatively disclose to the owner of real property that the licensee is a real estate broker 
61.34 	or agent salesperson, and in what capacity the licensee is acting, if the licensee directly, or 
62.1 	indirectly through a third party, purchases for himself or herself or acquires, or intends to 
62.2 	acquire, any interest in, or any option to purchase, the owner's property.
62.3 	(b) When a principal in the transaction is a licensee or a relative or business associate 
62.4 	of the licensee, that fact must be disclosed in writing.
62.5 		Subd. 3.Material facts. (a) A licensee shall disclose to a prospective purchaser 
62.6 	all material facts of which the licensee is aware, which could adversely and significantly 
62.7 	affect an ordinary purchaser's use or enjoyment of the property, or any intended use of the 
62.8 	property of which the licensee is aware.
62.9 	(b) It is not a material fact relating to real property offered for sale the fact or 
62.10 	suspicion that the property:
62.11 	(1) is or was occupied by an owner or occupant who is or was suspected 
62.12 	to be infected with human immunodeficiency virus or diagnosed with acquired 
62.13 	immunodeficiency syndrome;
62.14 	(2) was the site of a suicide, accidental death, natural death, or perceived paranormal 
62.15 	activity; or
62.16 	(3) is located in a neighborhood containing any adult family home, community-based 
62.17 	residential facility, or nursing home.
62.18 	(c) A licensee or employee of the licensee has no duty to disclose information 
62.19 	regarding an offender who is required to register under section 243.166, or about whom 
62.20 	notification is made under that section, if the broker or salesperson, in a timely manner, 
62.21 	provides a written notice that information about the predatory offender registry and 
62.22 	persons registered with the registry may be obtained by contacting local law enforcement 
62.23 	where the property is located or the Department of Corrections.
62.24 	(d) A licensee or employee of the licensee has no duty to disclose information 
62.25 	regarding airport zoning regulations if the broker or salesperson, in a timely manner, 
62.26 	provides a written notice that a copy of the airport zoning regulations as adopted can be 
62.27 	reviewed or obtained at the office of the county recorder where the zoned area is located.
62.28 	(e) A licensee is not required to disclose, except as otherwise provided in paragraph 
62.29 	(f), information relating to the physical condition of the property or any other information 
62.30 	relating to the real estate transaction, if a written report that discloses the information has 
62.31 	been prepared by a qualified third party and provided to the person. For the purposes of 
62.32 	this paragraph, "qualified third party" means a federal, state, or local governmental agency, 
62.33 	or any person whom the broker, salesperson, or a party to the real estate transaction 
62.34 	reasonably believes has the expertise necessary to meet the industry standards of practice 
62.35 	for the type of inspection or investigation that has been conducted by the third party 
63.1 	in order to prepare the written report and who is acceptable to the person to whom the 
63.2 	disclosure is being made.
63.3 	(f) A licensee shall disclose to the parties to a real estate transaction any facts known 
63.4 	by the broker or salesperson that contradict any information included in a written report 
63.5 	described in paragraph (e), if a copy of the report is provided to the licensee.
63.6 	(g) The limitation on disclosures in paragraphs (b) and (c) shall modify any common 
63.7 	law duties with respect to disclosure of material facts.
63.8 		Subd. 4.Nonperformance of party. If a licensee is put on notice by a party to a 
63.9 	real estate transaction that the party will not perform according to the terms of a purchase 
63.10 	agreement or other similar written agreement to convey real estate, the licensee shall 
63.11 	immediately disclose the fact of that party's intent not to perform to the other party or 
63.12 	parties to the transaction. The licensee shall, if reasonably possible, inform the party who 
63.13 	will not perform of the licensee's obligation to disclose this fact to the other party or 
63.14 	parties to the transaction before making the disclosure. The obligation required by this 
63.15 	section does not apply to notice of a party's inability to keep or fulfill any contingency to 
63.16 	which the real estate transaction has been made subject.

63.17 	Sec. 75. Minnesota Statutes 2008, section 82B.05, as amended by Laws 2009, chapter 
63.18 	63, section 62, is amended to read:
63.19 	82B.05 REAL ESTATE APPRAISER ADVISORY BOARD.
63.20 		Subdivision 1.Members. The Real Estate Appraiser Advisory Board consists of 
63.21 	15 nine members appointed by the commissioner of commerce. Three of the members 
63.22 	must be public members, four must be consumers of appraisal services, of whom one 
63.23 	member must be employed in the financial lending industry, and eightsix must be real 
63.24 	estate appraisers who are currently licensed in good standing, of whom not less than two
63.25 	three members must be trainee real property appraisers, licensed real property appraisers, 
63.26 	or certified residential real property appraisers, not less than twoand three members must 
63.27 	be certified general real property appraisers, and not less than. At least one member of the 
63.28 	board must be certified by the Appraisal Qualification Board of the Appraisal Foundation 
63.29 	to teach the Uniform Standards of Professional Appraisal Practice. The board is governed 
63.30 	by section 15.0575.
63.31 		Subd. 3.Terms. The term of office for members is three years.
63.32 	Upon expiration of their terms, members of the board shall continue to hold office 
63.33 	until the appointment and qualification of their successors. No person may serve as a 
63.34 	member of the board for more than two consecutive terms. The commissioner may 
63.35 	remove a member for cause.
64.1 		Subd. 4.Practice of public members prohibited. The public members of the board 
64.2 	may not be engaged in the practice of real estate appraising.
64.3 		Subd. 5.Conduct of meetings. Places of regular board meetings must be decided 
64.4 	by the vote of members. Written notice must be given to each member of the time and 
64.5 	place of each meeting of the board at least ten days before the scheduled date of regular 
64.6 	board meetings. The board shall establish procedures for emergency board meetings and 
64.7 	other operational procedures, subject to the approval of the commissioner.
64.8 	The members of the board shall elect a chair to preside at board meetings, a 
64.9 	vice-chair, and a secretary from among the members to preside at board meetings.
64.10 	A quorum of the board is eightfive members.
64.11 	The board shall meet at least once every sixthree months as determined by a 
64.12 	majority vote of the members or a call of the commissioner.
64.13 		Subd. 6.Compensation. Each member of the board is entitled to a per diem 
64.14 	allowance of $35 for each meeting of the board at which the member is present and for each 
64.15 	day or substantial part of a day actually spent in the conduct of the business of the board, 
64.16 	plus all appropriate expenses unless a greater amount is authorized by section 15.0575.  

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

64.18 	Sec. 76. Minnesota Statutes 2008, section 326.3382, subdivision 3, is amended to read:
64.19 		Subd. 3.Proof of insurance. (a) No license may be issued to a private detective 
64.20 	or protective agent applicant until the applicant has complied with the requirements in 
64.21 	this subdivision.
64.22 	(b) The applicant shall execute a surety bond to the state of Minnesota in the penal 
64.23 	sum of $10,000 and file it with the board. The surety bond must be executed by a 
64.24 	company authorized to do business in the state of Minnesota, must name the applicant as 
64.25 	principal, and must state that the applicant and each of the applicant's employees shall 
64.26 	faithfully observe all of the laws of Minnesota and of the United States and shall pay all 
64.27 	damages suffered by any person by reason of a violation of law by the applicant or by the 
64.28 	commission of any willful and malicious wrong by the applicant in the course of business.
64.29 	(c) The applicant shall furnish proof, acceptable to the board, of the applicant's 
64.30 	ability to respond in damages for liability on account of accidents or wrongdoings arising 
64.31 	out of the ownership and operation of a private detective or protective agent business. 
64.32 	Compliance with paragraph (d), (e), or (f) is satisfactory proof of financial responsibility 
64.33 	for purposes of this paragraph.
65.1 	(d) The applicant may file with the board a certificate of insurance demonstrating 
65.2 	coverage for general liability, completed operations, and personal injury. Personal injury 
65.3 	insurance must include coverage for:
65.4 	(1) false arrest, detention, imprisonment, and malicious prosecution;
65.5 	(2) libel, slander, defamation, and violation of rights of privacy; and
65.6 	(3) wrongful entry, eviction, and other invasion of rights of private occupancy.
65.7 	The certificate must provide that the insurance may not be modified or canceled 
65.8 	unless 30 days prior notice is given to the board. In the event of a policy cancellation, 
65.9 	the insurer will send notice to the board at the same time that a cancellation request is 
65.10 	received from or a notice is sent to the insured.
65.11 	(e) The applicant may file with the board an annual net worth statement, signed 
65.12 	by a licensed certified public accountant, evidencing that the applicant has a net worth 
65.13 	of at least the following:
65.14 	(1) for an applicant with no employees, $10,000;
65.15 	(2) for an applicant with one to ten employees, $15,000;
65.16 	(3) for an applicant with 11 to 25 employees, $25,000;
65.17 	(4) for an applicant with 26 to 50 employees, $50,000; or
65.18 	(5) for an applicant with 51 or more employees, $100,000.
65.19 	Data indicating with which of the above requirements an applicant must comply is 
65.20 	public data. The contents of the net worth statement are private data on individuals or 
65.21 	nonpublic data, as defined in section 13.02.  
65.22 	(f) The applicant may file with the board an irrevocable letter of credit from a 
65.23 	financial institution acceptable to the board in the amount listed in the appropriate 
65.24 	category in paragraph (e).

65.25 	Sec. 77. Minnesota Statutes 2008, section 326B.33, subdivision 16, is amended to read:
65.26 		Subd. 16.Insurance required. Each contractor shall have and maintain in effect 
65.27 	general liability insurance, which includes premises and operations insurance and products 
65.28 	and completed operations insurance, with limits of at least $100,000 per occurrence, 
65.29 	$300,000 aggregate limit for bodily injury, and property damage insurance with limits of 
65.30 	at least $50,000 or a policy with a single limit for bodily injury and property damage of 
65.31 	$300,000 per occurrence and $300,000 aggregate limits. Such insurance shall be written 
65.32 	by an insurer licensed to do business in the state of Minnesota and each contractor shall 
65.33 	maintain on file with the commissioner a certificate evidencing such insurance which 
65.34 	provides that such insurance shall not be canceled without the insurer first giving 15 
65.35 	days written notice to the commissioner of such cancellation. In the event of a policy 
66.1 	cancellation, the insurer shall send written notice to the commissioner at the same time 
66.2 	that a cancellation request is received from or a notice is sent to the insured.

66.3 	Sec. 78. Minnesota Statutes 2009 Supplement, section 326B.46, subdivision 2, is 
66.4 	amended to read:
66.5 		Subd. 2.Bond; insurance. Any person contracting to do plumbing work must give 
66.6 	bond to the state in the amount of at least $25,000 for (1) all plumbing work entered 
66.7 	into within the state or (2) all plumbing work and subsurface sewage treatment work 
66.8 	entered into within the state. If the bond is for both plumbing work and subsurface sewage 
66.9 	treatment work, the bond must comply with the requirements of this section and section 
66.10 	115.56, subdivision 2, paragraph (e). The bond shall be for the benefit of persons injured 
66.11 	or suffering financial loss by reason of failure to comply with the requirements of the 
66.12 	State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage 
66.13 	treatment work, financial loss by reason of failure to comply with the requirements of 
66.14 	sections 115.55 and 115.56. The bond shall be filed with the commissioner and shall be 
66.15 	written by a corporate surety licensed to do business in the state. 
66.16 	In addition, each applicant for a master plumber license or restricted master plumber 
66.17 	license, or renewal thereof, shall provide evidence of public liability insurance, including 
66.18 	products liability insurance with limits of at least $50,000 per person and $100,000 per 
66.19 	occurrence and property damage insurance with limits of at least $10,000. The insurance 
66.20 	shall be written by an insurer licensed to do business in the state of Minnesota and 
66.21 	each licensed master plumber shall maintain on file with the commissioner a certificate 
66.22 	evidencing the insurance providing that the insurance shall not be canceled without the 
66.23 	insurer first giving 15 days written notice to the commissioner. The term of the insurance 
66.24 	shall be concurrent with the term of the license. In the event of a policy cancellation, the 
66.25 	insurer shall send written notice to the commissioner at the same time that a cancellation 
66.26 	request is received from or a notice is sent to the insured.

66.27 	Sec. 79. Minnesota Statutes 2008, section 326B.56, subdivision 2, is amended to read:
66.28 		Subd. 2.Insurance. (a) Each applicant for a water conditioning contractor or 
66.29 	installer license or renewal thereof who is required by any political subdivision to 
66.30 	maintain insurance to obtain or maintain the license may comply with any political 
66.31 	subdivision's insurance requirement by maintaining the insurance described in paragraph 
66.32 	(b). No applicant for a water conditioning contractor or installer license who maintains the 
66.33 	insurance described in paragraph (b) shall be otherwise required to meet the insurance 
66.34 	requirements of any political subdivision.
67.1 	(b) The insurance shall provide coverage, including products liability coverage, 
67.2 	for all damages in connection with licensed work for which the licensee is liable, with 
67.3 	personal damage limits of at least $50,000 per person and $100,000 per occurrence and 
67.4 	property damage insurance with limits of at least $10,000. The insurance shall be written 
67.5 	by an insurer licensed to do business in this state and a certificate evidencing the insurance 
67.6 	shall be filed with the commissioner. The insurance must remain in effect at all times while 
67.7 	the application is pending and while the license is in effect. The insurance shall not be 
67.8 	canceled without the insurer first giving 15 days' written notice to the commissioner. In the 
67.9 	event of a policy cancellation, the insurer shall send written notice to the commissioner at 
67.10 	the same time that a cancellation request is received from or a notice is sent to the insured.

67.11 	Sec. 80. Minnesota Statutes 2008, section 326B.86, subdivision 2, is amended to read:
67.12 		Subd. 2.Insurance. Each licensee shall have and maintain in effect commercial 
67.13 	general liability insurance, which includes premises and operations insurance and products 
67.14 	and completed operations insurance, with limits of at least $100,000 per occurrence, 
67.15 	$300,000 aggregate limit for bodily injury, and property damage insurance with limits of 
67.16 	at least $25,000 or a policy with a single limit for bodily injury and property damage of 
67.17 	$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written by 
67.18 	an insurer licensed to do business in this state. Each licensee shall maintain on file with 
67.19 	the commissioner a certificate evidencing the insurance which provides that the insurance 
67.20 	shall not be canceled without the insurer first giving 15 days' written notice of cancellation 
67.21 	to the commissioner. In the event of a policy cancellation, the insurer shall send written 
67.22 	notice to the commissioner at the same time that a cancellation request is received from or 
67.23 	a notice is sent to the insured. The commissioner may increase the minimum amount of 
67.24 	insurance required for any licensee or class of licensees if the commissioner considers it to 
67.25 	be in the public interest and necessary to protect the interests of Minnesota consumers.

67.26 	Sec. 81. Minnesota Statutes 2008, section 326B.921, subdivision 6, is amended to read:
67.27 		Subd. 6.Insurance. In addition to the bond described in subdivision 5, each 
67.28 	applicant for a high pressure pipefitting business license or renewal shall have in force 
67.29 	public liability insurance, including products liability insurance, with limits of at least 
67.30 	$100,000 per person and $300,000 per occurrence and property damage insurance with 
67.31 	limits of at least $50,000.
67.32 	The insurance must be kept in force for the entire term of the high pressure 
67.33 	pipefitting business license, and the license shall be suspended by the department if at any 
67.34 	time the insurance is not in force.
68.1 	The insurance must be written by an insurer licensed to do business in the state and 
68.2 	shall be in lieu of any other insurance required by any subdivision of government for high 
68.3 	pressure pipefitting. Each person holding a high pressure pipefitting business license shall 
68.4 	maintain on file with the department a certificate evidencing the insurance. Any purported 
68.5 	cancellation of insurance shall not be effective without the insurer first giving 30 days' 
68.6 	written notice to the department. In the event of a policy cancellation, the insurer shall 
68.7 	send written notice to the commissioner at the same time that a cancellation request is 
68.8 	received from or a notice is sent to the insured.

68.9 	Sec. 82. Minnesota Statutes 2008, section 327B.04, subdivision 4, is amended to read:
68.10 		Subd. 4. License prerequisites. No application shall be granted nor license issued 
68.11 	until the applicant proves to the commissioner that: 
68.12 	(a) the applicant has a permanent, established place of business at each licensed 
68.13 	location. An "established place of business" means a permanent enclosed building other 
68.14 	than a residence, or a commercial office space, either owned by the applicant or leased by 
68.15 	the applicant for a term of at least one year, located in an area where zoning regulations 
68.16 	allow commercial activity, and where the books, records and files necessary to conduct 
68.17 	the business are kept and maintained. The owner of a licensed manufactured home park 
68.18 	who resides in or adjacent to the park may use the residence as the established place of 
68.19 	business required by this subdivision, unless prohibited by local zoning ordinance. 
68.20 	If a license is granted, the licensee may use unimproved lots and premises for sale, 
68.21 	storage, and display of manufactured homes, if the licensee first notifies the commissioner 
68.22 	in writing; 
68.23 	(b) if the applicant desires to sell, solicit or advertise the sale of new manufactured 
68.24 	homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor 
68.25 	of the new manufactured home it proposes to deal in; 
68.26 	(c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each 
68.27 	agency and each subagency location that bears the applicant's name and the name under 
68.28 	which the applicant will be licensed and do business in this state. Each bond is for the 
68.29 	protection of consumer customers, and must be executed by the applicant as principal and 
68.30 	issued by a surety company admitted to do business in this state. Each bond shall be 
68.31 	exclusively for the purpose of reimbursing consumer customers and shall be conditioned 
68.32 	upon the faithful compliance by the applicant with all of the laws and rules of this state 
68.33 	pertaining to the applicant's business as a dealer or manufacturer, including sections 
68.34 	325D.44, 325F.67 and 325F.69, and upon the applicant's faithful performance of all its 
68.35 	legal obligations to consumer customers; and (2) a certificate of liability insurance in 
69.1 	the amount of $1,000,000 that provides aggregate coverage for the agency and each 
69.2 	subagency location. In the event of a policy cancellation, the insurer shall send written 
69.3 	notice to the commissioner at the same time that a cancellation request is received from 
69.4 	or a notice is sent to the insured; 
69.5 	(d) the applicant has established a trust account as required by section 327B.08, 
69.6 	subdivision 3, unless the applicant states in writing its intention to limit its business to 
69.7 	selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and 
69.8 	(e) the applicant has provided evidence of having had at least two years' prior 
69.9 	experience in the sale of manufactured homes, working for a licensed dealer. 

69.10 	Sec. 83. [332.3351] EXEMPTION FROM LICENSURE.
69.11 	A collection agency shall be exempt from the licensing and registration requirements 
69.12 	of this chapter if all of the following conditions are met:
69.13 	(1) the agency is located in another state that regulates and licenses collection 
69.14 	agencies, but does not require a Minnesota collection agency to obtain a license to collect 
69.15 	debts in their state if the agency's collection activities are limited in the same manner;
69.16 	(2) the agency's collection activities are limited to collecting debts not incurred in 
69.17 	this state from consumers located in this state; and
69.18 	(3) the agency's collection activities in Minnesota are conducted by means of 
69.19 	interstate communications, including telephone, mail, electronic mail, or facsimile 
69.20 	transmission.

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

69.22 	Sec. 84. Minnesota Statutes 2008, section 332.34, is amended to read:
69.23 	332.34 BOND.
69.24 	The commissioner of commerce shall require each collection agency licensee to 
69.25 	annually file and maintain in force a corporate surety bond, in a form to be prescribed 
69.26 	by, and acceptable to, the commissioner, and in a sum of at least $20,000 $50,000 plus 
69.27 	an additional $5,000 for each $100,000 received by the collection agency from debtors 
69.28 	located in Minnesota during the previous calendar year, less commissions earned by the 
69.29 	collection agency on those collections for the previous calendar year. The total amount of 
69.30 	the bond shall not exceed $100,000. A collection agency may deposit cash in and with a 
69.31 	depository acceptable to the commissioner in an amount and in the manner prescribed and 
69.32 	approved by the commissioner in lieu of a bond.

70.1 	EFFECTIVE DATE. This section is effective for bonds obtained or renewed after 
70.2 	January 1, 2011.

70.3 	Sec. 85. Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to read:
70.4 		Subdivision 1.Insurance required. (a) No retail license may be issued, maintained 
70.5 	or renewed unless the applicant demonstrates proof of financial responsibility with regard 
70.6 	to liability imposed by section 340A.801. The issuing authority must submit to the 
70.7 	commissioner the applicant's proof of financial responsibility. This subdivision does not 
70.8 	prohibit a local unit of government from requiring higher insurance or bond coverages, or 
70.9 	a larger deposit of cash or securities. The minimum requirement for proof of financial 
70.10 	responsibility may be given by filing: 
70.11 	(1) a certificate that there is in effect for the license period an insurance policy 
70.12 	issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by 
70.13 	an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or 
70.14 	pool providing at least $50,000 of coverage because of bodily injury to any one person in 
70.15 	any one occurrence, $100,000 because of bodily injury to two or more persons in any one 
70.16 	occurrence, $10,000 because of injury to or destruction of property of others in any one 
70.17 	occurrence, $50,000 for loss of means of support of any one person in any one occurrence, 
70.18 	and $100,000 for loss of means of support of two or more persons in any one occurrence; 
70.19 	(2) a bond of a surety company with minimum coverages as provided in clause (1); or
70.20 	(3) a certificate of the commissioner of management and budget that the licensee 
70.21 	has deposited with the commissioner of management and budget $100,000 in cash or 
70.22 	securities which may legally be purchased by savings banks or for trust funds having a 
70.23 	market value of $100,000.
70.24 	(b) This subdivision does not prohibit an insurer from providing the coverage 
70.25 	required by this subdivision in combination with other insurance coverage.
70.26 	(c) An annual aggregate policy limit for dram shop insurance of not less than 
70.27 	$300,000 per policy year may be included in the policy provisions.
70.28 	(d) A liability insurance policy required by this section must provide that it may 
70.29 	not be canceled for:
70.30 	(1) any cause, except for nonpayment of premium, by either the insured or the 
70.31 	insurer unless the canceling party has first given 30 60 days' notice in writing to the 
70.32 	issuing authority insured of intent to cancel the policy; and
70.33 	(2) nonpayment of premium unless the canceling party has first given ten days' 
70.34 	notice in writing to the issuing authority insured of intent to cancel the policy.; and
71.1 	(3) in the event of a policy cancellation, the insurer will send notice to the issuing 
71.2 	authority at the same time that a cancellation request is received from or a notice is sent 
71.3 	to the insured.

71.4 	Sec. 86. Laws 2007, chapter 147, article 12, section 14, is amended to read:
71.5 	Sec. 14. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR 
71.6 	FARMERS.
 71.7 		Subdivision 1.Pilot project requirements. Notwithstanding contrary provisions 
71.8 	of Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot 
71.9 	projectplan administered by a trust sponsored by one or more agricultural cooperatives 
71.10 	organized under Minnesota Statutes, chapter 308A, or308B, under a federal charter, or a 
71.11 	not-for-profit association of cooperatives, or any combination of these organizations,  for 
71.12 	the purpose of offering health coverage to members of the cooperatives and their families, 
71.13 	provided the projectplan satisfies the other requirements of Minnesota Statutes, chapter 
71.14 	62H, except as otherwise provided in this section:
71.15 	(1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply;
71.16 	(2) the notice period required under Minnesota Statutes, section 62H.02, paragraph 
71.17 	(e), is 90 days;
71.18 	(3) a joint self-insurance plan may elect to treat the sale of a health plan to or for 
71.19 	an employer that has only one eligible employee who has not waived coverage as the 
71.20 	sale of an individual health plan as allowed under Minnesota Statutes, section 62L.02, 
71.21 	subdivision 26;
71.22 	(4) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), applies; and
71.23 	(5) the trustplan must pay the assessment for the Minnesota Comprehensive Health 
71.24 	Association as provided under Minnesota Statutes, section 62E.11; and
71.25 	(6) the financial solvency, stop-loss, and reserve requirements established under 
71.26 	chapter 62H and the rules adopted under it, and other laws and rules relating to finance 
71.27 	and solvency of health plans that are cross-referenced in chapter 62H do not apply if the 
71.28 	joint self-insurance plan obtains or arranges for a combination of insurance coverage and 
71.29 	individual and aggregate stop-loss coverage that protect the plan against at least 95 percent 
71.30 	of the total risk assumed by the plan, its sponsors, and its members, including coverage 
71.31 	or reserves adequate to pay incurred but not paid claims on the termination of the plan. 
71.32 	The commissioner shall grant a limited Minnesota stop-loss carrier license to a carrier 
71.33 	or carriers not currently licensed in the state for purposes of providing insurance and 
71.34 	stop-loss coverage to the joint self-insurance plan, provided the carrier or carriers enter 
71.35 	into an agreement with the commissioner of commerce under which the carriers agree to 
72.1 	submit to the limited jurisdiction of the commissioner pertaining to their insurance and 
72.2 	stop-loss coverage for the joint self-insurance program. Notwithstanding other laws to 
72.3 	the contrary, insurance and stop-loss coverage provided under this section to the plan, its 
72.4 	sponsors, or the persons enrolled in the plan shall be deemed by the commissioner to be 
72.5 	stop-loss coverage for a joint self-insurance plan authorized under this section and shall 
72.6 	not be considered health insurance under Minnesota law.
72.7 		Subd. 2.Evaluation and renewal. The pilot project authorized under this section 
72.8 	is for a period of four years from the date of initial enrollment. The commissioner of 
72.9 	commerce shall grant an extension of four additional years if the trust provides evidence 
72.10 	that it remains in compliance with the requirements of this section and other applicable 
72.11 	laws and rules. If the commissioner determines that the operation of the trust has not 
72.12 	improved access, expanded health plan choices, or improved the affordability of health 
72.13 	coverage for farm families, or that it has significantly damaged access, choice, or 
72.14 	affordability for other consumers not enrolled in the trust, the commissioner shall provide 
72.15 	at least 180 days' advance written notice to the trust and to the chairs of the senate and 
72.16 	house finance and policy committees with jurisdiction over health and insurance of the 
72.17 	commissioner's intention not to renew the pilot project at the expiration of a four-year 
72.18 	period.

72.19 	Sec. 87. 2011 APPOINTMENTS TO REAL ESTATE APPRAISER ADVISORY 
72.20 	BOARD.
 72.21 	The terms of all members of the Real Estate Appraiser Advisory Board expire the 
72.22 	effective date of this section. The commissioner of commerce shall, as soon as practicable 
72.23 	after this date, appoint members to an initial term of office as follows: three years for one 
72.24 	consumer of appraisal services member, one certified residential real property appraiser 
72.25 	member, and one certified general real property appraiser member; two years for one 
72.26 	consumer of appraisal services member, one certified residential real property appraiser 
72.27 	member, and one certified general real property appraiser member; and one year for one 
72.28 	consumer of appraisal services member, one certified residential real property appraiser 
72.29 	member, and one certified general real property appraiser member.
72.30 	Upon the expiration of the term of office established in this section, the successor 
72.31 	must be appointed pursuant to Minnesota Statutes, section 82B.05.
72.32 	All provisions of Minnesota Statutes, section 82B.05, not inconsistent with this 
72.33 	section apply to the initial board appointed pursuant to this section.

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

73.1 	Sec. 88. COORDINATION OF BENEFITS STUDY.
 73.2 	The commissioner of commerce, in consultation with the commissioner of 
73.3 	health and health plan companies, shall consider the appropriateness of adopting the 
73.4 	National Association of Insurance Commissioners 2005 Coordination of Benefits Model 
73.5 	Regulation. The commissioner shall submit recommendations and draft legislation, if any, 
73.6 	needed to implement the recommendations, to the legislature by January 15, 2011.

73.7 	Sec. 89.  REPEALER.
 73.8 	Minnesota Statutes 2008, sections 82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, 
73.9 	8, and 9; 82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3 and 7; 332.31, 
73.10 	subdivision 7; and 332.335, are repealed.
73.11 	Minnesota Statutes 2009 Supplement, section 65B.133, subdivision 3; and 72B.02, 
73.12 	subdivision 11,  are repealed.
73.13 	Minnesota Statutes 2008, section 72B.04, is repealed effective July 1, 2010.

73.14 	ARTICLE 2
73.15 	MINNESOTA S.A.F.E. MORTGAGE LICENSING ACT OF 2010

73.16 	Section 1. [58A.01] TITLE.
73.17 	This chapter may be cited as the "Minnesota Secure and Fair Enforcement for 
73.18 	Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of 
73.19 	2010."

73.20 	Sec. 2. [58A.02] DEFINITIONS.
73.21 		Subdivision 1.Application. For purposes of this chapter, the definitions in 
73.22 	subdivisions 2 to 15 have the meanings given them.
73.23 		Subd. 2.Depository institution. "Depository institution" has the meaning given in 
73.24 	United States Code, title 12, section 1813, and includes a credit union.
73.25 		Subd. 3.Federal banking agencies. "Federal banking agencies" means the Board 
73.26 	of Governors of the Federal Reserve System, the comptroller of the currency, the director 
73.27 	of the Office of Thrift Supervision, the National Credit Union Administration, and the 
73.28 	Federal Deposit Insurance Corporation.
73.29 		Subd. 4.Immediate family member. "Immediate family member" means a spouse, 
73.30 	child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren, 
73.31 	stepsiblings, and adoptive relationships.
73.32 		Subd. 5.Individual. "Individual" means a natural person.
74.1 		Subd. 6.Loan processor or underwriter. "Loan processor or underwriter" means 
74.2 	an individual who performs clerical or support duties as an employee at the direction 
74.3 	of and subject to the supervision and instruction of a person licensed or exempt from 
74.4 	licensing under chapter 58. For purposes of this subdivision, the term "clerical or support 
74.5 	duties" may include after the receipt of an application:
74.6 	(1) the receipt, collection, distribution, and analysis of information common for the 
74.7 	processing or underwriting of a residential mortgage loan; and
74.8 	(2) communicating with a consumer to obtain the information necessary for the 
74.9 	processing or underwriting of a loan, to the extent that the communication does not include 
74.10 	offering or negotiating loan rates or terms, or counseling consumers about residential 
74.11 	mortgage loan rates or terms.
74.12 		Subd. 7.Mortgage loan originator. "Mortgage loan originator":
74.13 	(1) means an individual who for compensation or gain or in the expectation of 
74.14 	compensation or gain:
74.15 	(i) takes a residential mortgage loan application; or
74.16 	(ii) offers or negotiates terms of a residential mortgage loan;
74.17 	(2) does not include an individual engaged solely as a loan processor or underwriter 
74.18 	except as otherwise provided in section 58A.03, subdivision 3;
74.19 	(3) does not include a person or entity that only performs real estate brokerage 
74.20 	activities and is licensed or registered according to Minnesota law, unless the person or 
74.21 	entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or 
74.22 	by an agent of the lender, mortgage broker, or other mortgage loan originator; 
74.23 	(4) does not include a person or entity solely involved in extensions of credit 
74.24 	relating to timeshare plans, as that term is defined in United States Code, title 11, section 
74.25 	101(53D); and
74.26 	(5) does not include a licensed manufactured home retailer, licensed limited retailer, 
74.27 	or salesperson selling manufactured or modular homes, provided that person only assists 
74.28 	the consumer in filling out a loan application and does not offer or negotiate loan rates or 
74.29 	terms, does not do any counseling with consumers about residential mortgage loan rates 
74.30 	or terms, and does not receive any payment or fee from any company or individual for 
74.31 	assisting the consumer.
74.32 		Subd. 8.Nationwide Mortgage Licensing System and Registry. "Nationwide 
74.33 	Mortgage Licensing System and Registry" means a mortgage licensing system developed 
74.34 	and maintained by the Conference of State Bank Supervisors and the American 
74.35 	Association of Residential Mortgage Regulators for the licensing and registration of 
74.36 	licensed mortgage loan originators.
75.1 		Subd. 9.Nontraditional mortgage product. "Nontraditional mortgage product" 
75.2 	means a mortgage product other than a 30-year fixed rate mortgage loan.
75.3 		Subd. 10.Person. "Person" means a natural person, corporation, company, limited 
75.4 	liability company, partnership, or association.
75.5 		Subd. 11.Real estate brokerage activity. "Real estate brokerage activity" means 
75.6 	an activity that involves offering or providing real estate brokerage services to the public, 
75.7 	including:
75.8 	(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor, 
75.9 	or lessee of real property;
75.10 	(2) bringing together parties interested in the sale, purchase, lease, rental, or 
75.11 	exchange of real property;
75.12 	(3) negotiating, on behalf of a party, a portion of a contract relating to the sale, 
75.13 	purchase, lease, rental, or exchange of real property other than in connection with 
75.14 	providing financing with respect to the transaction;
75.15 	(4) engaging in an activity for which a person engaged in the activity is required to 
75.16 	be registered or licensed as a real estate agent or real estate broker under any applicable 
75.17 	law; and
75.18 	(5) offering to engage in any activity, or act in any capacity, described in clause 
75.19 	(1), (2), (3), or (4).
75.20 		Subd. 12.Registered mortgage loan originator. "Registered mortgage loan 
75.21 	originator" means an individual who:
75.22 	(1) meets the definition of mortgage loan originator and is an employee of:
75.23 	(i) a depository institution;
75.24 	(ii) a subsidiary that is owned and controlled by a depository institution and 
75.25 	regulated by a federal banking agency; or
75.26 	(iii) an institution regulated by the Farm Credit Administration; and
75.27 	(2) is registered with, and maintains a unique identifier through, the Nationwide 
75.28 	Mortgage Licensing System and Registry.
75.29 		Subd. 13.Residential mortgage loan. "Residential mortgage loan" means a loan 
75.30 	primarily for personal, family, or household use that is secured by a mortgage, deed of 
75.31 	trust, or other equivalent consensual security interest on a dwelling, as defined in United 
75.32 	States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is 
75.33 	constructed or intended to be constructed.
75.34 		Subd. 14.Residential real estate. "Residential real estate" means real property 
75.35 	located in Minnesota, upon which a dwelling is constructed or is intended to be 
75.36 	constructed.
76.1 		Subd. 15.Unique identifier. "Unique identifier" means a number or other identifier 
76.2 	assigned by protocols established by the Nationwide Mortgage Licensing System and 
76.3 	Registry.

76.4 	Sec. 3. [58A.03] LICENSE AND REGISTRATION REQUIRED.
76.5 		Subdivision 1.Generally. An individual, unless specifically exempted from this 
76.6 	chapter under subdivision 2, shall not engage in the business of a mortgage loan originator 
76.7 	with respect to a dwelling located in this state without first obtaining and maintaining a 
76.8 	license under this chapter. An individual may not engage in the mortgage loan business 
76.9 	unless the individual is employed and supervised by an entity which is either licensed 
76.10 	or exempt from licensing under chapter 58. A licensed mortgage loan originator must 
76.11 	register with and maintain a valid unique identifier issued by the Nationwide Mortgage 
76.12 	Licensing System and Registry.
76.13 		Subd. 2.Exemptions. The following are exempt from this chapter:
76.14 	(1) a registered mortgage loan originator, when acting for an entity described in 
76.15 	section 58A.02, subdivision 12, clause (1);
76.16 	(2) an individual who offers or negotiates terms of a residential mortgage loan with 
76.17 	or on behalf of an immediate family member of the individual;
76.18 	(3) an individual who offers or negotiates terms of a residential mortgage loan 
76.19 	secured by a dwelling that served as the individual's residence; and
76.20 	(4) a licensed attorney who negotiates the terms of a residential mortgage loan 
76.21 	on behalf of a client as an ancillary matter to the attorney's representation of the client, 
76.22 	unless the attorney is compensated by a lender, a mortgage broker, or other mortgage 
76.23 	loan originator or by any agent of the lender, mortgage broker, or other mortgage loan 
76.24 	originator.
76.25 		Subd. 3.Independent contractor loan processors or underwriters. A loan 
76.26 	processor or underwriter who is an independent contractor may not engage in the activities 
76.27 	of a loan processor or underwriter unless the independent contractor loan processor 
76.28 	or underwriter obtains and maintains a license under subdivision 1. An independent 
76.29 	contractor loan processor or underwriter licensed as a mortgage loan originator must have 
76.30 	and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing 
76.31 	System and Registry.

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

77.3 	Sec. 4. [58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND 
77.4 	ISSUANCE.
77.5 		Subdivision 1.Application form. An applicant for a license shall apply in a form 
77.6 	as prescribed by the commissioner. The form must contain content as set forth by rule, 
77.7 	instruction, or procedure of the commissioner and may be changed or updated as necessary 
77.8 	by the commissioner in order to carry out the purposes of this chapter.
77.9 		Subd. 2.Commissioner may establish relationships or contracts. In order 
77.10 	to fulfill the purposes of this chapter, the commissioner is authorized to establish 
77.11 	relationships or contracts with the Nationwide Mortgage Licensing System and Registry 
77.12 	or other entities designated by the Nationwide Mortgage Licensing System and Registry to 
77.13 	collect and maintain records and process transaction fees or other fees related to licensees 
77.14 	or other persons subject to this chapter.
77.15 		Subd. 3.Waive or modify requirements. For the purpose of participating in the 
77.16 	Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to 
77.17 	waive or modify, in whole or in part, by rule or order, any or all of the requirements of 
77.18 	this chapter and to establish new requirements as reasonably necessary to participate in 
77.19 	the Nationwide Mortgage Licensing System and Registry.
77.20 		Subd. 4.Background checks. In connection with an application for licensing as a 
77.21 	mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide 
77.22 	Mortgage Licensing System and Registry information concerning the applicant's identity, 
77.23 	including:
77.24 	(1) fingerprints for submission to the Federal Bureau of Investigation, and a 
77.25 	governmental agency or entity authorized to receive the information for a state, national, 
77.26 	and international criminal history background check; and
77.27 	(2) personal history and experience in a form prescribed by the Nationwide 
77.28 	Mortgage Licensing System and Registry, including the submission of authorization for 
77.29 	the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
77.30 	(i) an independent credit report obtained from a consumer reporting agency 
77.31 	described in United States Code, title 15, section 1681a(p); and
77.32 	(ii) information related to administrative, civil, or criminal findings by a 
77.33 	governmental jurisdiction.
77.34 		Subd. 5.Agent for purposes of requesting and distributing criminal 
77.35 	information. For the purposes of this section and in order to reduce the points of 
78.1 	contact which the Federal Bureau of Investigation may have to maintain for purposes of 
78.2 	subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage 
78.3 	Licensing System and Registry as a channeling agent for requesting information from and 
78.4 	distributing information to the Department of Justice or any governmental agency.
78.5 		Subd. 6.Agent for purposes of requesting and distributing noncriminal 
78.6 	information. For the purposes of this section and in order to reduce the points of contact 
78.7 	which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i) 
78.8 	and (ii), the commissioner may use the Nationwide Mortgage Licensing System and 
78.9 	Registry as a channeling agent for requesting and distributing information to and from any 
78.10 	source so directed by the commissioner.

78.11 	Sec. 5. [58A.045] TERM OF LICENSE AND FEES.
78.12 		Subdivision 1.Term. Licenses for mortgage loan originators issued under this 
78.13 	chapter expire on December 31 and are renewable on January 1 of each year after that date.
78.14 		Subd. 2.Fees. The following fees must be paid to the commissioner:
78.15 	(1) for a mortgage loan originator license, $100; and
78.16 	(2) for a renewal mortgage loan originator license, $50.

78.17 	Sec. 6. [58A.05] ISSUANCE OF LICENSE.
78.18 	The commissioner shall not issue a mortgage loan originator license unless the 
78.19 	commissioner finds at a minimum, that:
78.20 	(1) the applicant has never had a mortgage loan originator license revoked in a 
78.21 	governmental jurisdiction, except that a subsequent formal vacation of a revocation shall 
78.22 	not be deemed a revocation;
78.23 	(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a 
78.24 	felony in a domestic, foreign, or military court:
78.25 	(i) during the seven-year period preceding the date of the application for licensing 
78.26 	and registration;
78.27 	(ii) at any time preceding the date of application, if the felony involved an act of 
78.28 	fraud, dishonesty, or a breach of trust, or money laundering; or
78.29 	(iii) provided that a pardon of a conviction is not a conviction for purposes of this 
78.30 	clause;
78.31 	(3) the applicant has demonstrated financial responsibility, character, and general 
78.32 	fitness such as to command the confidence of the community and to warrant a 
78.33 	determination that the mortgage loan originator will operate honestly, fairly, and efficiently 
78.34 	within the purposes of this chapter. For purposes of this chapter, a person has shown that 
79.1 	the person is not financially responsible when the person has shown a disregard in the 
79.2 	management of the person's own financial condition. A determination that an individual 
79.3 	has not shown financial responsibility may include, but is not limited to:
79.4 	(i) current outstanding judgments, except judgments solely as a result of medical 
79.5 	expenses;
79.6 	(ii) current outstanding tax liens or other government liens and filings;
79.7 	(iii) foreclosures within the past three years; and
79.8 	(iv) a pattern of seriously delinquent accounts within the past three years;
79.9 	(4) the applicant has completed the prelicensing education requirement described 
79.10 	in section 58A.06;
79.11 	(5) the applicant has passed a written test that meets the test requirement described 
79.12 	in section 58A.07; and
79.13 	(6) the applicant has met the surety bond requirement as required under section 
79.14 	58A.13.

79.15 	Sec. 7. [58A.06] PRELICENSING AND RELICENSING EDUCATION OF 
79.16 	LOAN ORIGINATORS.
79.17 		Subdivision 1.Minimum educational requirements. In order to meet the 
79.18 	prelicensing education requirement referred to in section 58A.05, clause (4), a person 
79.19 	shall complete at least 20 hours of education approved according to subdivision 2, that 
79.20 	includes at least:
79.21 	(1) three hours of federal law and regulations;
79.22 	(2) three hours of ethics, which includes instruction on fraud, consumer protection, 
79.23 	and fair lending issues; and
79.24 	(3) two hours of training related to lending standards for the nontraditional mortgage 
79.25 	product marketplace.
79.26 		Subd. 2.Approved educational courses. For purposes of subdivision 1, 
79.27 	prelicensing education courses must be reviewed, and approved by the Nationwide 
79.28 	Mortgage Licensing System and Registry based upon reasonable standards. Review 
79.29 	and approval of a prelicensing education course must include review and approval of 
79.30 	the course provider.
79.31 		Subd. 3.Approval of employer and affiliate educational courses. Nothing in 
79.32 	this section precludes a prelicensing education course, as approved by the Nationwide 
79.33 	Mortgage Licensing System and Registry, that is provided by the employer of the applicant 
79.34 	or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or 
79.35 	affiliate of the employer or entity.
80.1 		Subd. 4.Venue of education. Prelicensing education may be offered in a classroom, 
80.2 	online, or by any other means approved by the Nationwide Mortgage Licensing System 
80.3 	and Registry.
80.4 		Subd. 5.Reciprocity of education. The prelicensing education requirements 
80.5 	approved by the Nationwide Mortgage Licensing System and Registry in subdivision 
80.6 	1 for a state must be accepted as credit toward completion of prelicensing education 
80.7 	requirements in Minnesota.
80.8 		Subd. 6.Relicensing education requirements. A person previously licensed under 
80.9 	this chapter after the effective date of this chapter applying to be licensed again must 
80.10 	prove that the person has completed all of the continuing education requirements for 
80.11 	the year in which the license was last held.

80.12 	Sec. 8. [58A.07] TESTING OF LOAN ORIGINATORS.
80.13 		Subdivision 1.Generally. In order to meet the written test requirement referred to 
80.14 	in section 58A.05, clause (5), an individual shall pass, in accordance with the standards 
80.15 	established under this section, a qualified written test developed by the Nationwide 
80.16 	Mortgage Licensing System and Registry and administered by a test provider approved 
80.17 	by the Nationwide Mortgage Licensing System and Registry based upon reasonable 
80.18 	standards.
80.19 		Subd. 2.Qualified test. A written test must not be treated as a qualified written 
80.20 	test for purposes of subdivision 1 unless the test adequately measures the applicant's 
80.21 	knowledge and comprehension in appropriate subject areas, including:
80.22 	(1) ethics;
80.23 	(2) federal law and regulation pertaining to mortgage origination;
80.24 	(3) state law and rule pertaining to mortgage origination; and
80.25 	(4) federal and state law and rule, including instruction on fraud, consumer 
80.26 	protection, the nontraditional mortgage marketplace, and fair lending issues.
80.27 		Subd. 3.Testing location. Nothing in this section prohibits a test provider approved 
80.28 	by the Nationwide Mortgage Licensing System and Registry from providing a test at the 
80.29 	location of the employer of the applicant or the location of a subsidiary or affiliate of the 
80.30 	employer of the applicant, or the location of an entity with which the applicant holds an 
80.31 	exclusive arrangement to conduct the business of a mortgage loan originator.
80.32 		Subd. 4.Minimum competence. (a) An individual is not considered to have 
80.33 	passed a qualified written test unless the individual achieves a test score of not less than 
80.34 	75 percent correct answers to questions.
81.1 	(b) An individual may retake a test three consecutive times with each consecutive 
81.2 	taking occurring at least 30 days after the preceding test.
81.3 	(c) After failing three consecutive tests, an individual shall wait at least six months 
81.4 	before taking the test again.
81.5 	(d) A licensed mortgage loan originator who fails to maintain a valid license for a 
81.6 	period of five years or longer shall retake the test, not taking into account any time during 
81.7 	which the individual is a registered mortgage loan originator.

81.8 	Sec. 9. [58A.08] STANDARDS FOR LICENSE RENEWAL.
81.9 		Subdivision 1.Generally. The minimum standards for license renewal for a 
81.10 	mortgage loan originator include that the mortgage loan originator:
81.11 	(1) continues to meet the minimum standards for license issuance under section 
81.12 	58A.05;
81.13 	(2) has satisfied the annual continuing education requirements described in section 
81.14 	58A.09; and
81.15 	(3) has paid all required fees for renewal of the license.
81.16 		Subd. 2.Failure to satisfy minimum standards of license renewal. The license of 
81.17 	a mortgage loan originator failing to satisfy the minimum standards for license renewal 
81.18 	expires. The commissioner may adopt procedures for the reinstatement of expired licenses 
81.19 	consistent with the standards established by the Nationwide Mortgage Licensing System 
81.20 	and Registry.

81.21 	Sec. 10. [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN 
81.22 	ORIGINATORS.
81.23 		Subdivision 1.Generally. In order to meet the annual continuing education 
81.24 	requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage 
81.25 	loan originator shall complete at least eight hours of education approved according to 
81.26 	subdivision 2 that includes at least:
81.27 	(1) three hours of federal law and regulations;
81.28 	(2) two hours of ethics, which includes instruction on fraud, consumer protection, 
81.29 	and fair lending issues; and
81.30 	(3) two hours of training related to lending standards for the nontraditional mortgage 
81.31 	product marketplace.
81.32 		Subd. 2.Approved educational courses. For purposes of subdivision 1, continuing 
81.33 	education courses must be reviewed and approved by the Nationwide Mortgage Licensing 
82.1 	System and Registry based upon reasonable standards. Review and approval of a 
82.2 	continuing education course must include review and approval of the course provider.
82.3 		Subd. 3.Approval of employer and affiliate educational courses. Nothing in 
82.4 	this section precludes an education course, as approved by the Nationwide Mortgage 
82.5 	Licensing System and Registry, that is provided by the employer of the mortgage loan 
82.6 	originator or an entity that is affiliated with the mortgage loan originator by an agency 
82.7 	contract, or a subsidiary or affiliate of the employer or entity.
82.8 		Subd. 4.Venue of education. Continuing education may be offered either in a 
82.9 	classroom, online, or by other means approved by the Nationwide Mortgage Licensing 
82.10 	System and Registry.
82.11 		Subd. 5.Calculation of continuing education credits. A licensed mortgage loan 
82.12 	originator:
82.13 	(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive 
82.14 	credit for a continuing education course in the year in which the course is taken; and
82.15 	(2) may not take the same approved course in the same or successive years to meet 
82.16 	the annual requirements for continuing education.
82.17 		Subd. 6.Instructor credit. A licensed mortgage loan originator who is an approved 
82.18 	instructor of an approved continuing education course may receive credit for the licensed 
82.19 	mortgage loan originator's own annual continuing education requirement at the rate of 
82.20 	two hours credit for every one hour taught.
82.21 		Subd. 7.Reciprocity of education. A person having successfully completed the 
82.22 	education requirements approved by the Nationwide Mortgage Licensing System and 
82.23 	Registry in subdivision 1 for a state must be accepted as credit toward completion of 
82.24 	continuing education requirements in Minnesota.
82.25 		Subd. 8.Lapse in license. A licensed mortgage loan originator who subsequently 
82.26 	becomes unlicensed must complete the continuing education requirements for the last year 
82.27 	in which the license was held before a new or renewed license is issued.
82.28 		Subd. 9.Deficiency. A person meeting the requirements of section 58A.08, 
82.29 	subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as 
82.30 	established by rule of the commissioner.

82.31 	Sec. 11. [58A.10] AUTHORITY TO REQUIRE LICENSE.
82.32 	In addition to any other duties imposed upon the commissioner by law, the 
82.33 	commissioner shall require mortgage loan originators to be licensed and registered 
82.34 	through the Nationwide Mortgage Licensing System and Registry. In order to carry out 
82.35 	this requirement, the commissioner may participate in the Nationwide Mortgage Licensing 
83.1 	System and Registry. For this purpose, the commissioner may establish by rule or order 
83.2 	requirements as necessary, including but not limited to:
83.3 	(1) background checks for:
83.4 	(i) criminal history through fingerprint or other databases;
83.5 	(ii) civil or administrative records;
83.6 	(iii) credit history; or
83.7 	(iv) other information as determined necessary by the Nationwide Mortgage 
83.8 	Licensing System and Registry;
83.9 	(2) the payment of fees to apply for or renew licenses through the Nationwide 
83.10 	Mortgage Licensing System and Registry;
83.11 	(3) the setting or resetting as necessary of renewal or reporting dates; and
83.12 	(4) requirements for amending or surrendering a license or other activities the 
83.13 	commissioner considers necessary for participation in the Nationwide Mortgage Licensing 
83.14 	System and Registry.

83.15 	Sec. 12. [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND 
83.16 	REGISTRY INFORMATION CHALLENGE PROCESS.
83.17 	The commissioner shall establish a process that allows mortgage loan originators 
83.18 	to challenge information entered into the Nationwide Mortgage Licensing System and 
83.19 	Registry by the commissioner.

83.20 	Sec. 13. [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND 
83.21 	PENALTIES.
83.22 	(a) In order to ensure the effective supervision and enforcement of this chapter, the 
83.23 	commissioner may, pursuant to chapter 14:
83.24 	(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of 
83.25 	this chapter, rules issued under this chapter, or order or directive entered under this chapter;
83.26 	(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant 
83.27 	or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or 
83.28 	withholds information or makes a material misstatement in an application for a license 
83.29 	or renewal of a license;
83.30 	(3) order restitution against persons subject to this chapter for violations of this 
83.31 	chapter;
83.32 	(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) 
83.33 	to (d); and
83.34 	(5) issue orders or directives under this chapter as follows:
84.1 	(i) order or direct persons subject to this chapter to cease and desist from conducting 
84.2 	business, including immediate temporary orders to cease and desist;
84.3 	(ii) order or direct persons subject to this chapter to cease any harmful activities or 
84.4 	violations of this chapter, including immediate temporary orders to cease and desist;
84.5 	(iii) enter immediate temporary orders to cease business under a license or interim 
84.6 	license issued pursuant to the authority granted under section 58A.03 if the commissioner 
84.7 	determines that the license was erroneously granted or the licensee is currently in violation 
84.8 	of this chapter; and
84.9 	(iv) order or direct other affirmative action the commissioner considers necessary.
84.10 	(b) The commissioner may impose a civil penalty on a mortgage loan originator or 
84.11 	person subject to this chapter, if the commissioner finds, on the record after notice and 
84.12 	opportunity for hearing, that the mortgage loan originator or person subject to this chapter 
84.13 	has violated or failed to comply with any requirement of this chapter or any rule prescribed 
84.14 	by the commissioner under this chapter or order issued under authority of this chapter.
84.15 	(c) The maximum amount of penalty for each act or omission described in paragraph 
84.16 	(b) is $25,000.
84.17 	(d) Each violation or failure to comply with any directive or order of the 
84.18 	commissioner is a separate and distinct violation or failure.

84.19 	Sec. 14. [58A.13] SURETY BOND REQUIRED.
84.20 		Subdivision 1.Coverage, form, and rules. (a) Each mortgage loan originator must 
84.21 	be covered by a surety bond meeting the requirements of this section. In the event that 
84.22 	the mortgage loan originator is an employee or exclusive agent of a person subject to this 
84.23 	chapter, the surety bond of the person subject to this chapter can be used in lieu of the 
84.24 	mortgage loan originator's surety bond requirement.
84.25 	(b) The surety bond shall provide coverage for each mortgage loan originator in 
84.26 	an amount as prescribed in subdivision 2.
84.27 	(c) The surety bond must be in a form as prescribed by the commissioner.
84.28 		Subd. 2.Penal sum of surety bond. The penal sum of the surety bond must be 
84.29 	maintained in an amount that reflects the dollar amount of loans originated as determined 
84.30 	by the commissioner.
84.31 		Subd. 3.Action on bond. When an action is commenced on a licensee's bond the 
84.32 	commissioner may require the filing of a new bond.
84.33 		Subd. 4.New bond. Immediately upon recovery upon any action on the bond 
84.34 	the licensee shall file a new bond.

85.1 	Sec. 15. [58A.14] CONFIDENTIALITY.
85.2 		Subdivision 1.Protections. Except as otherwise provided in Public Law 110-289, 
85.3 	section 1512, the requirements under chapter 13 or any federal law regarding the privacy 
85.4 	or confidentiality of any information or material provided to the Nationwide Mortgage 
85.5 	Licensing System and Registry, and any privilege arising under federal or state law, 
85.6 	including the rules of any federal or state court, with respect to the information or material, 
85.7 	continue to apply to the information or material after the information or material has been 
85.8 	disclosed to the Nationwide Mortgage Licensing System and Registry. The information 
85.9 	and material may be shared with all state and federal regulatory officials with mortgage 
85.10 	industry oversight authority without the loss of privilege or the loss of confidentiality 
85.11 	protections provided by chapter 13 or federal law.
85.12 		Subd. 2.Agreements and sharing arrangements. For purposes of this section, 
85.13 	the commissioner is authorized to enter agreements or sharing arrangements with 
85.14 	other governmental agencies, the Conference of State Bank Supervisors, the American 
85.15 	Association of Residential Mortgage Regulators, or other associations representing 
85.16 	governmental agencies as established by rule or order of the commissioner.
85.17 		Subd. 3.Nonapplicability of certain requirements. Information or material that is 
85.18 	subject to a privilege or confidentiality under subdivision 1 is not subject to:
85.19 	(1) disclosure under any federal or state law governing the disclosure to the public of 
85.20 	information held by an officer or an agency of the federal government or the respective 
85.21 	state; or
85.22 	(2) subpoena or discovery, or admission into evidence, in any private civil action 
85.23 	or administrative process, unless with respect to any privilege held by the Nationwide 
85.24 	Mortgage Licensing System and Registry with respect to the information or material, 
85.25 	the person to whom the information or material pertains waives, in whole or in part, in 
85.26 	the discretion of the person, that privilege.
85.27 		Subd. 4.Coordination with Minnesota Government Data Practices Act. Chapter 
85.28 	13 relating to the disclosure of confidential supervisory information or any information or 
85.29 	material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by 
85.30 	the requirements of this section.
85.31 		Subd. 5.Public access to information. This section does not apply with respect to 
85.32 	the information or material relating to the employment history of, and publicly adjudicated 
85.33 	disciplinary and enforcement actions against, mortgage loan originators that are included 
85.34 	in the Nationwide Mortgage Licensing System and Registry for access by the public.

85.35 	Sec. 16. [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
86.1 		Subdivision 1.Generally. In addition to any authority allowed under this chapter, 
86.2 	the commissioner may conduct investigations and examinations according to subdivisions 
86.3 	2 to 9.
86.4 		Subd. 2.Authority to access information. For purposes of initial licensing, license 
86.5 	renewal, license suspension, license conditioning, license revocation or termination, or 
86.6 	general or specific inquiry or investigation to determine compliance with this chapter, the 
86.7 	commissioner may access, receive and use any books, accounts, records, files, documents, 
86.8 	information or evidence including, but not limited to:
86.9 	(1) criminal, civil, and administrative history information, including nonconviction 
86.10 	data;
86.11 	(2) personal history and experience information including independent credit reports 
86.12 	obtained from a consumer reporting agency described in United States Code, title 15, 
86.13 	section 1681a(p); and
86.14 	(3) any other documents, information, or evidence the commissioner considers 
86.15 	relevant to the inquiry or investigation regardless of the location, possession, control, or 
86.16 	custody of the documents, information, or evidence.
86.17 		Subd. 3.Investigation, examination, and subpoena authority. For the purposes 
86.18 	of investigating violations or complaints arising under this chapter, or for the purposes of 
86.19 	examination, the commissioner may review, investigate, or examine a licensee, individual, 
86.20 	or person subject to this chapter, as often as necessary in order to carry out the purposes 
86.21 	of this chapter. The commissioner may direct, subpoena, or order the attendance of and 
86.22 	examine under oath all persons whose testimony may be required about the loans or the 
86.23 	business or subject matter of any such examination or investigation, and may direct, 
86.24 	subpoena, or order such person to produce books, accounts, records, files, and any other 
86.25 	documents the commissioner considers relevant to the inquiry.
86.26 		Subd. 4.Availability of books and records. A licensee, individual, or person 
86.27 	subject to this chapter shall make available to the commissioner upon request the books 
86.28 	and records relating to the operations of the licensee, individual, or person subject to this 
86.29 	chapter. The commissioner shall have access to the books and records and interview 
86.30 	the officers, principals, mortgage loan originators, employees, independent contractors, 
86.31 	agents, and customers of the licensee, individual, or person subject to this chapter 
86.32 	concerning the licensee's, individual's, or person's business.
86.33 		Subd. 5.Reports and other information as directed. A licensee, individual, or 
86.34 	person subject to this chapter shall make or compile reports or prepare other information 
86.35 	as directed by the commissioner in order to carry out the purposes of this section including 
86.36 	but not limited to:
87.1 	(1) accounting compilations;
87.2 	(2) information lists and data concerning loan transactions in a format prescribed 
87.3 	by the commissioner; or
87.4 	(3) other information the commissioner considers necessary to carry out the 
87.5 	purposes of this section.
87.6 		Subd. 6.Control access to records. In making an examination or investigation 
87.7 	authorized by this chapter, the commissioner may control access to documents and records 
87.8 	of the licensee or person under examination or investigation. The commissioner may 
87.9 	take possession of the documents and records or place a person in exclusive charge of 
87.10 	the documents and records in the place where they are usually kept. During the period of 
87.11 	control, no individual or person shall remove or attempt to remove any of the documents 
87.12 	and records except pursuant to a court order or with the consent of the commissioner. 
87.13 	Unless the commissioner has reasonable grounds to believe the documents or records 
87.14 	of the licensee have been, or are at risk of being, altered or destroyed for purposes of 
87.15 	concealing a violation of this chapter, the licensee or owner of the documents and records 
87.16 	has access to the documents or records as necessary to conduct its ordinary business affairs.
87.17 		Subd. 7.Additional authority. In order to carry out the purposes of this section, 
87.18 	the commissioner may:
87.19 	(1) retain attorneys, accountants, or other professionals and specialists as examiners, 
87.20 	auditors, or investigators to conduct or assist in the conduct of examinations or 
87.21 	investigations;
87.22 	(2) enter into agreements or relationships with other government officials or 
87.23 	regulatory associations in order to improve efficiencies and reduce regulatory burden 
87.24 	by sharing resources, standardized or uniform methods or procedures, and documents, 
87.25 	records, information, or evidence obtained under this section;
87.26 	(3) use, hire, contract, or employ public or privately available analytical systems, 
87.27 	methods, or software to examine or investigate the licensee, individual, or person subject 
87.28 	to this chapter;
87.29 	(4) accept and rely on examination or investigation reports made by other 
87.30 	government officials, within or without this state; or
87.31 	(5) accept audit reports made by an independent certified public accountant for the 
87.32 	licensee, individual, or person subject to this chapter in the course of that part of the 
87.33 	examination covering the same general subject matter as the audit and incorporate the 
87.34 	audit report in the report of the examination, report of investigation or other writing of 
87.35 	the commissioner.
88.1 		Subd. 8.Effect of authority. The authority of this section remains in effect, 
88.2 	whether a licensee, individual, or person subject to this chapter acts or claims to act under 
88.3 	any licensing or registration law of this state, or claims to act without such authority.
88.4 		Subd. 9.Withhold records. A licensee, individual, or person subject to 
88.5 	investigation or examination under this section shall not knowingly withhold, abstract, 
88.6 	remove, mutilate, destroy, or secrete any books, records, computer records, or other 
88.7 	information.

88.8 	Sec. 17. [58A.16] PROHIBITED ACTS AND PRACTICES.
88.9 		Subdivision 1.Generally. It is a violation of this chapter for a person or individual 
88.10 	subject to this chapter to:
88.11 	(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead 
88.12 	borrowers or lenders or to defraud any person;
88.13 	(2) engage in any unfair or deceptive practice toward any person;
88.14 	(3) obtain property by fraud or misrepresentation;
88.15 	(4) solicit or enter into a contract with a borrower that provides in substance that the 
88.16 	person or individual subject to this chapter may earn a fee or commission through "best 
88.17 	efforts" to obtain a loan even though no loan is actually obtained for the borrower;
88.18 	(5) solicit, advertise, or enter into a contract for specific interest rates, points, or 
88.19 	other financing terms unless the terms are actually available at the time of soliciting, 
88.20 	advertising, or contracting;
88.21 	(6) conduct any business covered by this chapter without holding a valid license as 
88.22 	required under this chapter, or assist or aid and abet any person in the conduct of business 
88.23 	under this chapter without a valid license as required under this chapter;
88.24 	(7) fail to make disclosures as required by this chapter and any other applicable 
88.25 	state or federal law or regulations;
88.26 	(8) fail to comply with this chapter or rules adopted under this chapter or fail 
88.27 	to comply with any other state or federal law or regulations applicable to any business 
88.28 	authorized or conducted under this chapter;
88.29 	(9) make, in any manner, any false or deceptive statement or representation 
88.30 	including, with regard to the rates, points, or other financing terms or conditions for a 
88.31 	residential mortgage loan; or engage in bait-and-switch advertising;
88.32 	(10) negligently make a false statement or knowingly and willfully make an omission 
88.33 	of material fact in connection with any information or reports filed with a governmental 
88.34 	agency or the Nationwide Mortgage Licensing System and Registry or in connection with 
88.35 	an investigation conducted by the commissioner or another governmental agency;
89.1 	(11) make a payment, threat, or promise, directly or indirectly, to a person for the 
89.2 	purposes of influencing the independent judgment of the person in connection with a 
89.3 	residential mortgage loan, or make a payment threat or promise, directly or indirectly, to 
89.4 	an appraiser of a property, for the purposes of influencing the independent judgment of the 
89.5 	appraiser with respect to the value of the property;
89.6 	(12) collect, charge, attempt to collect or charge, or use or propose an agreement 
89.7 	purporting to collect or charge a fee prohibited by this chapter;
89.8 	(13) cause or require a borrower to obtain property insurance coverage in an amount 
89.9 	that exceeds the replacement cost of the improvements as established by the property 
89.10 	insurer; or
89.11 	(14) fail to truthfully account for money belonging to a party to a residential 
89.12 	mortgage loan transaction.
89.13 		Subd. 2.Loan processor or underwriter activities. An individual engaging solely 
89.14 	in loan processor or underwriter activities shall not represent to the public, through 
89.15 	advertising or other means of communicating or providing information, including the use 
89.16 	of business cards, stationery, brochures, signs, rate lists, or other promotional items, that 
89.17 	the individual can or will perform any of the activities of a mortgage loan originator.

89.18 	Sec. 18. [58A.17] MORTGAGE CALL REPORTS.
89.19 	A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and 
89.20 	Registry reports of condition, which must be in the form and contain the information the 
89.21 	Nationwide Mortgage Licensing System and Registry requires.

89.22 	Sec. 19. [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING 
89.23 	SYSTEM AND REGISTRY.
89.24 	The commissioner shall regularly report violations of this chapter, as well as 
89.25 	enforcement actions and other relevant information, to the Nationwide Mortgage 
89.26 	Licensing System and Registry subject to the provisions contained in section 58A.14.

89.27 	Sec. 20. [58A.20] UNIQUE IDENTIFIER SHOWN.
89.28 	The unique identifier of any person originating a residential mortgage loan shall 
89.29 	be clearly shown on all residential mortgage loan application forms, solicitations, or 
89.30 	advertisements, including business cards or Web sites, and any other documents as 
89.31 	established by rule or order of the commissioner.

89.32 	Sec. 21. EFFECTIVE DATE.
 90.1 	This article is effective July 31, 2010.

90.2 	ARTICLE 3
90.3 	CONFORMING AND TRANSITIONAL PROVISIONS RELATING TO 
90.4 	MINNESOTA STATUTES, CHAPTER 58

90.5 	Section 1. Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:
90.6 		Subdivision 1.Residential mortgage originator licensing requirements. (a) 
90.7 	No person shall act as a residential mortgage originator, or make residential mortgage 
90.8 	loans without first obtaining a license from the commissioner according to the licensing 
90.9 	procedures provided in this chapter.
90.10 	(b) A licensee must be either a partnership, limited liability partnership, association, 
90.11 	limited liability company, corporation, or other form of business organization, and must 
90.12 	have and maintain at all times one of the following: approval as a mortgagee by either the 
90.13 	federal Department of Housing and Urban Development or the Federal National Mortgage 
90.14 	Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety 
90.15 	bond or irrevocable letter of credit in the amount of $50,000 amounts prescribed under 
90.16 	section 58.08. Net worth, net of intangibles, must be calculated in accordance with 
90.17 	generally accepted accounting principles.
90.18 	(c) The following persons are exempt from the residential mortgage originator 
90.19 	licensing requirements:
90.20 	(1) a person who is not in the business of making residential mortgage loans and who 
90.21 	makes no more than three such loans, with its own funds, during any 12-month period;
90.22 	(2) a financial institution as defined in section 58.02, subdivision 10; 
90.23 	(3) an agency of the federal government, or of a state or municipal government;
90.24 	(4) an employee or employer pension plan making loans only to its participants;
90.25 	(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of 
90.26 	a specific order issued by a court of competent jurisdiction; or
90.27 	(6) a person exempted by order of the commissioner.

90.28 	Sec. 2. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended 
90.29 	to read:
90.30 		Subd. 2.Application contents. (a) The application must contain the name and 
90.31 	complete business address or addresses of the license applicant. The license applicant 
90.32 	must be a partnership, limited liability partnership, association, limited liability company, 
90.33 	corporation, or other form of business organization, and the application must contain the 
90.34 	names and complete business addresses of each partner, member, director, and principal 
91.1 	officer. The application must also include a description of the activities of the license 
91.2 	applicant, in the detail and for the periods the commissioner may require.
91.3 	(b) A residential mortgage originator applicant must submit one of the following:
91.4 	(1) evidence which shows, to the commissioner's satisfaction, that either the federal 
91.5 	Department of Housing and Urban Development or the Federal National Mortgage 
91.6 	Association has approved the residential mortgage originator applicant as a mortgagee;
91.7 	(2) a surety bond or irrevocable letter of credit in the amount of not less than 
91.8 	$50,000 in a form approved by the commissioner, issued by an insurance company or bank 
91.9 	authorized to do so in this state. The bond or irrevocable letter of credit must be available 
91.10 	for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 
91.11 	and for losses incurred by borrowers. The bond or letter of credit must be submitted with 
91.12 	the license application, and evidence of continued coverage must be submitted with each 
91.13 	renewal. Any change in the bond or letter of credit must be submitted for approval by the 
91.14 	commissioner within ten days of its execution; or
91.15 	(3) a copy of the residential mortgage originator applicant's most recent audited 
91.16 	financial statement, including balance sheet, statement of income or loss, statements of 
91.17 	changes in shareholder equity, and statement of changes in financial position. Financial 
91.18 	statements must be as of a date within 12 months of the date of application. a surety bond 
91.19 	that meets the requirements of section 58.08, subdivision 1a.
91.20 	(c) The application must also include all of the following:
91.21 	(1) an affirmation under oath that the applicant:
91.22 	(i) is in compliance with the requirements of section 58.125;
91.23 	(ii) will maintain a perpetual roster of individuals employed as residential mortgage 
91.24 	originators, including employees and independent contractors, which includes the dates 
91.25 	that mandatory testing, initial education, and continuing education were completed. In 
91.26 	addition, the roster must be made available to the commissioner on demand, within three 
91.27 	business days of the commissioner's request;
91.28 	(iii) will advise the commissioner of any material changes to the information 
91.29 	submitted in the most recent application within ten days of the change;
91.30 	(iv) (iii) will advise the commissioner in writing immediately of any bankruptcy 
91.31 	petitions filed against or by the applicant or licensee;
91.32 	(v) (iv) will maintain at all times either a net worth, net of intangibles, of at least 
91.33 	$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000
91.34 	$100,000;
91.35 	(vi) (v) complies with federal and state tax laws; and
92.1 	(vii) (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed 
92.2 	property law; 
92.3 	(2) information as to the mortgage lending, servicing, or brokering experience of the 
92.4 	applicant and persons in control of the applicant;
92.5 	(3) information as to criminal convictions, excluding traffic violations, of persons in 
92.6 	control of the license applicant;
92.7 	(4) whether a court of competent jurisdiction has found that the applicant or persons 
92.8 	in control of the applicant have engaged in conduct evidencing gross negligence, fraud, 
92.9 	misrepresentation, or deceit in performing an act for which a license is required under 
92.10 	this chapter;
92.11 	(5) whether the applicant or persons in control of the applicant have been the subject 
92.12 	of: an order of suspension or revocation, cease and desist order, or injunctive order, or 
92.13 	order barring involvement in an industry or profession issued by this or another state or 
92.14 	federal regulatory agency or by the Secretary of Housing and Urban Development within 
92.15 	the ten-year period immediately preceding submission of the application; and
92.16 	(6) other information required by the commissioner.

92.17 	Sec. 3. Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to 
92.18 	read:
92.19 		Subd. 1a.Residential mortgage originators. (a) An applicant for a residential 
92.20 	mortgage originator license must file with the department a surety bond in the amount of 
92.21 	$100,000, issued by an insurance company authorized to do so in this state. The bond 
92.22 	must cover all mortgage loan originators who are employees or independent agents of 
92.23 	the applicant. The bond must be available for the recovery of expenses, fines, and fees 
92.24 	levied by the commissioner under this chapter and for losses incurred by borrowers as 
92.25 	a result of a licensee's noncompliance with the requirements of this chapter, sections 
92.26 	325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities 
92.27 	regulated by this chapter.
92.28 	(b) The bond must be submitted with the originator's license application and 
92.29 	evidence of continued coverage must be submitted with each renewal. Any change in the 
92.30 	bond must be submitted for approval by the commissioner, within ten days of its execution. 
92.31 	The bond or a substitute bond shall remain in effect during all periods of licensing.
92.32 	(c) Upon filing of the mortgage call report as required by section 58A.17, a licensee 
92.33 	shall maintain or increase its surety bond to reflect the total dollar amount of the closed 
92.34 	residential mortgage loans originated in this state in the preceding year in accordance 
92.35 	with the table in this paragraph. A licensee may decrease its surety bond in accordance 
93.1 	with the table in this paragraph if the surety bond required is less than the amount of the 
93.2 	surety bond on file with the department.

93.3
93.4	Dollar Amount of Closed Residential 
Mortgage Loans
	Surety Bond Required
	
93.5	$0 to $5,000,000
	$100,000
	
93.6	$5,000,000.01 to $10,000,000
	$125,000
	
93.7	$10,000,000.01 to $25,000,000
	$150,000
	
93.8	Over $25,000,000
	$200,000
	
93.9 	For purposes of this subdivision, "mortgage loan originator" has the meaning given 
93.10 	the term in section 58A.02, subdivision 7.

93.11 	Sec. 4. Minnesota Statutes 2008, section 58.09, is amended to read:
93.12 	58.09 TERM OF LICENSE.
93.13 	Initial Licenses for residential mortgage originators and residential mortgage 
93.14 	servicers issued under this chapter expire on July 31, 2001, December 31 and are 
93.15 	renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year 
93.16 	after that date. A new licensee whose license expires less than 12 months from the date 
93.17 	of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in 
93.18 	section 58.10, subdivision 1, clause (1) or (3).

93.19 	Sec. 5. Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:
93.20 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
93.21 	(1) for an initiala residential mortgage originator license, $2,125 $1,000, $50 of 
93.22 	which is credited to the consumer education account in the special revenue fund;
93.23 	(2) for a renewal license, $1,125 $500, $50 of which is credited to the consumer 
93.24 	education account in the special revenue fund;
93.25 	(3) for an initiala residential mortgage servicer's license, $1,000 $500;
93.26 	(4) for a renewal license, $500 $250; and
93.27 	(5) for a certificate of exemption, $100.

93.28 	Sec. 6. Minnesota Statutes 2008, section 58.11, is amended to read:
93.29 	58.11 LICENSE RENEWAL.
93.30 		Subdivision 1.Term. Licenses are renewable on August 1, 2001, and on August 1
93.31 	January 1 of each odd-numbered year after that date.
93.32 		Subd. 2.Timely renewal. (a) A person whose application is properly and timely 
93.33 	filed who has not received notice of denial of renewal is considered approved for renewal 
94.1 	and the person may continue to transact business as a residential mortgage originator or 
94.2 	servicer whether or not the renewed license has been received on or before August January 
94.3 	1 of the renewal year. Application for renewal of a license is considered timely filed if 
94.4 	received by the commissioner by, or mailed with proper postage and postmarked by, July
94.5 	December 15 of the renewal year. An application for renewal is considered properly filed 
94.6 	if made upon forms duly executed and sworn to, accompanied by fees prescribed by this 
94.7 	chapter, and containing any information that the commissioner requires.
94.8 	(b) A person who fails to make a timely application for renewal of a license and 
94.9 	who has not received the renewal license as of August January 1 of the renewal year is 
94.10 	unlicensed until the renewal license has been issued by the commissioner and is received 
94.11 	by the person.
94.12 		Subd. 3.Contents of renewal application. Application for the renewal of an 
94.13 	existing license must contain the information specified in section 58.06, subdivision 2; 
94.14 	however, only the requested information having changed from the most recent prior 
94.15 	application need be submitted.  
94.16 		Subd. 4.Cancellation. A licensee ceasing an activity or activities regulated by this 
94.17 	chapter and desiring to no longer be licensed shall so inform the commissioner in writing 
94.18 	and, at the same time, surrender the license and all other symbols or indicia of licensure. 
94.19 	The licensee shall include a plan for the withdrawal from regulated business, including a 
94.20 	timetable for the disposition of the business.

94.21 	Sec. 7. ASSESSMENT.
 94.22 	The commissioner may levy a pro rata assessment on institutions licensed under 
94.23 	Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce 
94.24 	for administering the licensing and registration requirements of Minnesota Statutes, 
94.25 	section 58A.10. The assessment amount must be determined by dividing those costs by 
94.26 	the number of licensees.
94.27 	The commissioner shall levy the assessments and notify each institution of the 
94.28 	amount of the assessment being levied by September 30, 2010. The institution shall pay 
94.29 	the assessment to the department no later than November 30, 2010. If an institution fails 
94.30 	to pay its assessment by this date, its license may be suspended by the commissioner 
94.31 	until it is paid in full.
94.32 	This section expires December 1, 2010.

94.33 	Sec. 8. RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS; 
94.34 	TRANSITIONAL LICENSE FEE AND TERMS.
 95.1 	A residential mortgage originator licensee and a residential mortgage service 
95.2 	licensee operating under a valid license under Minnesota Statutes, chapter 58, with an 
95.3 	expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a residential 
95.4 	mortgage originator, and $100 for a residential mortgage servicer. The prorated license 
95.5 	renewal fee must be paid by December 31, 2010, and such payment extends the license 
95.6 	term until December 31, 2011.

95.7 	Sec. 9.  REPEALER.
 95.8 	Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

95.9 	Sec. 10. EFFECTIVE DATE.
 95.10 	This article is effective July 31, 2010.