<a id="pl.1.3"></a><var>1.3</var>regulating various insurance coverages and practices; modifying definitions, <br/>
<a id="pl.1.4"></a><var>1.4</var>informational requirements, continuing education requirements, information <br/>
<a id="pl.1.5"></a><var>1.5</var>reporting requirements, and notice requirements; making various housekeeping, <br/>
<a id="pl.1.6"></a><var>1.6</var>technical, and clarifying changes; authorizing certain flexible benefit health <br/>
<a id="pl.1.7"></a><var>1.7</var>plans; regulating insurance continuation provisions for local government <br/>
<a id="pl.1.8"></a><var>1.8</var>employees; regulating securities; reorganizing and modifying various provisions <br/>
<a id="pl.1.9"></a><var>1.9</var>relating to real estate brokers, salespersons, and closing agents; modifying the <br/>
<a id="pl.1.10"></a><var>1.10</var>membership requirements of, and appointment authority to, the real estate <br/>
<a id="pl.1.11"></a><var>1.11</var>appraiser advisory board; regulating certain workers' compensation self-insurers; <br/>
<a id="pl.1.12"></a><var>1.12</var>modifying the eligibility criteria for a University Promise Scholarship; <br/>
<a id="pl.1.13"></a><var>1.13</var>authorizing and conditioning the issuance of certain on-sale liquor licenses; <br/>
<a id="pl.1.14"></a><var>1.14</var>modifying certain lien notices; requiring a certain study;amending Minnesota <br/>
<a id="pl.1.15"></a><var>1.15</var>Statutes 2008, sections 45.0112; 60A.031, subdivision 4; 60A.084; 60A.204; <br/>
<a id="pl.1.16"></a><var>1.16</var>60A.36, by adding a subdivision; 60K.31, subdivision 10; 61A.092, subdivision <br/>
<a id="pl.1.17"></a><var>1.17</var>3; 62A.046, subdivision 6, by adding a subdivision; 62A.17, subdivision 5; <br/>
<a id="pl.1.18"></a><var>1.18</var>62A.3099, subdivision 17; 62A.65, subdivision 2; 62E.02, subdivision 15; <br/>
<a id="pl.1.19"></a><var>1.19</var>62E.14, subdivision 4c; 62L.05, subdivision 4; 62S.24, subdivision 8; 62S.266, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 4; 62S.29, subdivision 1; 72A.08, subdivision 4; 72A.12, subdivision <br/>
<a id="pl.1.21"></a><var>1.21</var>4; 72A.20, subdivisions 10, 36, 37; 72A.492, subdivision 2; 72A.51, subdivision <br/>
<a id="pl.1.22"></a><var>1.22</var>2; 72B.01; 72B.08, subdivision 8; 79A.03, subdivision 8; 79A.06, subdivision <br/>
<a id="pl.1.23"></a><var>1.23</var>5; 79A.21, subdivision 3; 80A.41; 80A.46; 80A.65, subdivision 6; 82.17, <br/>
<a id="pl.1.24"></a><var>1.24</var>subdivision 15, by adding subdivisions; 82.19; 82.21, subdivision 2; 82.24, <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivision 3; 82.29, subdivisions 4, 5, 8; 82.31, subdivisions 1, 2; 82.33, <br/>
<a id="pl.1.26"></a><var>1.26</var>subdivisions 1, 2, by adding a subdivision; 82.34, subdivisions 1, 2, 4, 5, 13; <br/>
<a id="pl.1.27"></a><var>1.27</var>82.39; 82.41, subdivisions 1, 2, by adding a subdivision; 82.45, subdivision 3, <br/>
<a id="pl.1.28"></a><var>1.28</var>by adding subdivisions; 82.48, subdivisions 2, 3; 82B.05, as amended; 82B.06; <br/>
<a id="pl.1.29"></a><var>1.29</var>82B.14; 326.3382, subdivision 3; 326B.33, subdivision 16; 326B.46, by adding <br/>
<a id="pl.1.30"></a><var>1.30</var>a subdivision; 326B.56, subdivision 2; 326B.86, subdivision 2; 326B.921, <br/>
<a id="pl.1.31"></a><var>1.31</var>subdivision 6; 327B.04, subdivision 4; 332.34; 340A.409, subdivision 1; 471.61, <br/>
<a id="pl.1.32"></a><var>1.32</var>subdivision 2b; 514.20; Minnesota Statutes 2009 Supplement, sections 45.027, <br/>
<a id="pl.1.33"></a><var>1.33</var>subdivision 1; 45.30, subdivision 4; 60A.39, subdivisions 1, 4, 5; 60A.9572, <br/>
<a id="pl.1.34"></a><var>1.34</var>subdivision 6; 60K.361; 62A.3099, subdivision 18; 65A.29, subdivision 13; <br/>
<a id="pl.1.35"></a><var>1.35</var>72B.03, subdivision 2; 72B.045, subdivision 1; 72B.06; 82.31, subdivision 4; <br/>
<a id="pl.1.36"></a><var>1.36</var>82.32; 137.0225; 326B.46, subdivision 2; 340A.404, subdivision 4a; Laws 2007, <br/>
<a id="pl.1.37"></a><var>1.37</var>chapter 147, article 12, section 14; proposing coding for new law in Minnesota <br/>
<a id="pl.1.38"></a><var>1.38</var>Statutes, chapters 62L; 82; 137; 332; repealing Minnesota Statutes 2008, <br/>
<a id="pl.1.39"></a><var>1.39</var>sections 62L.056; 72B.04; 82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, 8, 9; <br/>
<a id="pl.2.1"></a><var>2.1</var>82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3, 7; 332.31, <br/>
<a id="pl.2.2"></a><var>2.2</var>subdivision 7; 332.335; Minnesota Statutes 2009 Supplement, sections 65B.133, <br/>
<a id="pl.2.3"></a><var>2.3</var>subdivision 3; 72B.02, subdivision 11.<br/>
<a id="pl.2.4"></a><var>2.4</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.2.5"></a><var>2.5</var>    Section 1. Minnesota Statutes 2008, section 45.0112, is amended to read:<br/>
<a id="pl.2.6"></a><var>2.6</var><b>45.0112 STREET </b><b>AND E-MAIL </b><b>ADDRESSES REQUIRED.</b><br/>
<a id="pl.2.7"></a><var>2.7</var>Licensees or applicants for licenses issued by the commissioner shall provide to the <br/>
<a id="pl.2.8"></a><var>2.8</var>commissioner a residence telephone number, a street address where the licensee actually <br/>
<a id="pl.2.9"></a><var>2.9</var>resides, and a street address where the licensee's business is physically located, and a <br/>
<a id="pl.2.10"></a><var>2.10</var>current e-mail address for business use. A post office box address is not sufficient to <br/>
<a id="pl.2.11"></a><var>2.11</var>satisfy this requirement. The individual shall notify the department of any change in street <br/>
<a id="pl.2.12"></a><var>2.12</var>address, e-mail address for business use, or residence telephone number within ten days.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.13"></a><var>2.13</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 45.027, subdivision 1, is <br/>
<a id="pl.2.14"></a><var>2.14</var>amended to read:<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subdivision 1. <b>General powers.</b> In connection with the duties and responsibilities <br/>
<a id="pl.2.16"></a><var>2.16</var>entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner <br/>
<a id="pl.2.17"></a><var>2.17</var>of commerce may:<br/>
<a id="pl.2.18"></a><var>2.18</var>(1) make public or private investigations within or without this state as the <br/>
<a id="pl.2.19"></a><var>2.19</var>commissioner considers necessary to determine whether any person has violated or is <br/>
<a id="pl.2.20"></a><var>2.20</var>about to violate any law, rule, or order related to the duties and responsibilities entrusted <br/>
<a id="pl.2.21"></a><var>2.21</var>to the commissioner;<br/>
<a id="pl.2.22"></a><var>2.22</var>(2) require or permit any person to file a statement in writing, under oath or otherwise <br/>
<a id="pl.2.23"></a><var>2.23</var>as the commissioner determines, as to all the facts and circumstances concerning the <br/>
<a id="pl.2.24"></a><var>2.24</var>matter being investigated;<br/>
<a id="pl.2.25"></a><var>2.25</var>(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the <br/>
<a id="pl.2.26"></a><var>2.26</var>duties and responsibilities entrusted to the commissioner;<br/>
<a id="pl.2.27"></a><var>2.27</var>(4) conduct investigations and hold hearings for the purpose of compiling <br/>
<a id="pl.2.28"></a><var>2.28</var>information related to the duties and responsibilities entrusted to the commissioner;<br/>
<a id="pl.2.29"></a><var>2.29</var>(5) examine the books, accounts, records, and files of every licensee, and of every <br/>
<a id="pl.2.30"></a><var>2.30</var>person who is engaged in any activity regulated; the commissioner or a designated <br/>
<a id="pl.2.31"></a><var>2.31</var>representative shall have free access during normal business hours to the offices and <br/>
<a id="pl.2.32"></a><var>2.32</var>places of business of the person, and to all books, accounts, papers, records, files, safes, <br/>
<a id="pl.2.33"></a><var>2.33</var>and vaults maintained in the place of business;<br/>
<a id="pl.2.34"></a><var>2.34</var>(6) publish information which is contained in any order issued by the commissioner; <br/>
<a id="pl.3.1"></a><var>3.1</var>(7) require any person subject to duties and responsibilities entrusted to the <br/>
<a id="pl.3.2"></a><var>3.2</var>commissioner, to report all sales or transactions that are regulated. The reports must <br/>
<a id="pl.3.3"></a><var>3.3</var>be made within ten days after the commissioner has ordered the report. The report is <br/>
<a id="pl.3.4"></a><var>3.4</var>accessible only to the respondent and other governmental agencies unless otherwise <br/>
<a id="pl.3.5"></a><var>3.5</var>ordered by a court of competent jurisdiction; and<br/>
<a id="pl.3.6"></a><var>3.6</var>(8) assess a licensee natural person or entity subject to the jurisdiction of the <br/>
<a id="pl.3.7"></a><var>3.7</var>commissioner the necessary expenses of the investigation performed by the department <br/>
<a id="pl.3.8"></a><var>3.8</var>when an investigation is made by order of the commissioner. The cost of the investigation <br/>
<a id="pl.3.9"></a><var>3.9</var>shall be determined by the commissioner and is based on the salary cost of investigators <br/>
<a id="pl.3.10"></a><var>3.10</var>or assistants and at an average rate per day or fraction thereof so as to provide for the <br/>
<a id="pl.3.11"></a><var>3.11</var>total cost of the investigation. All money collected must be deposited into the general <br/>
<a id="pl.3.12"></a><var>3.12</var>fund. A natural person licensed under chapter 60K or 82 shall not be charged costs of <br/>
<a id="pl.3.13"></a><var>3.13</var>an investigation if the investigation results in no finding of a violation. This clause <br/>
<a id="pl.3.14"></a><var>3.14</var>does not apply to a natural person or entity already subject to the assessment provisions <br/>
<a id="pl.3.15"></a><var>3.15</var>of sections 60A.03 and 60A.031.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.3.16"></a><var>3.16</var>    Sec. 3. Minnesota Statutes 2009 Supplement, section 45.30, subdivision 4, is amended <br/>
<a id="pl.3.17"></a><var>3.17</var>to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 4. <b>Credit earned.</b> (a) Upon completion of approved courses, students must <br/>
<a id="pl.3.19"></a><var>3.19</var>earn one hour of continuing education credit for each hour approved by the commissioner. <br/>
<a id="pl.3.20"></a><var>3.20</var>Continuing education courses must be attended in their entirety in order to receive credit <br/>
<a id="pl.3.21"></a><var>3.21</var>for the number of approved hours.<br/>
<a id="pl.3.22"></a><var>3.22</var>(b) Qualified instructors will earn three hours of continuing education credit for <br/>
<a id="pl.3.23"></a><var>3.23</var>each classroom hour of approved instruction that they deliver (1) independently, or (2) <br/>
<a id="pl.3.24"></a><var>3.24</var>as part of a team presentation in a course of two hours or less, if they attend the course <br/>
<a id="pl.3.25"></a><var>3.25</var>in its entirety. For licensees other than appraisers, no more than half of the continuing <br/>
<a id="pl.3.26"></a><var>3.26</var>education hours required for renewal of a license may be earned as a qualified instructor at <br/>
<a id="pl.3.27"></a><var>3.27</var>the rate of three hours of continuing education credit for each classroom hour of approved <br/>
<a id="pl.3.28"></a><var>3.28</var>instruction. For licensed appraisers, no more than one-half of the continuing education <br/>
<a id="pl.3.29"></a><var>3.29</var>hours required for renewal of a license may be earned as a qualified instructor. No credit <br/>
<a id="pl.3.30"></a><var>3.30</var>will be earned if the licensee has previously obtained credit for the same course as either <br/>
<a id="pl.3.31"></a><var>3.31</var>a student or instructor during the same licensing period.<br/>
<a id="pl.3.32"></a><var>3.32</var>(c) A licensee must not receive credit for more than eight hours of continuing <br/>
<a id="pl.3.33"></a><var>3.33</var>education in one day.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.34"></a><var>3.34</var>    Sec. 4. Minnesota Statutes 2008, section 60A.031, subdivision 4, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 4. <b>Examination report; foreign and domestic companies.</b> (a) The <br/>
<a id="pl.4.2"></a><var>4.2</var>commissioner shall make a full and true report of every examination conducted pursuant <br/>
<a id="pl.4.3"></a><var>4.3</var>to this chapter, which shall include (1) a statement of findings of fact relating to the <br/>
<a id="pl.4.4"></a><var>4.4</var>financial status and other matters ascertained from the books, papers, records, documents, <br/>
<a id="pl.4.5"></a><var>4.5</var>and other evidence obtained by investigation and examination or ascertained from <br/>
<a id="pl.4.6"></a><var>4.6</var>the testimony of officers, agents, or other persons examined under oath concerning the <br/>
<a id="pl.4.7"></a><var>4.7</var>business, affairs, assets, obligations, ability to fulfill obligations, and compliance with <br/>
<a id="pl.4.8"></a><var>4.8</var>all the provisions of the law of the company, applicant, organization, or person subject <br/>
<a id="pl.4.9"></a><var>4.9</var>to this chapter and (2) a summary of important points noted in the report, conclusions, <br/>
<a id="pl.4.10"></a><var>4.10</var>recommendations and suggestions as may reasonably be warranted from the facts so <br/>
<a id="pl.4.11"></a><var>4.11</var>ascertained in the examinations. The report of examination shall be verified by the oath <br/>
<a id="pl.4.12"></a><var>4.12</var>of the examiner in charge thereof, and shall be prima facie evidence in any action or <br/>
<a id="pl.4.13"></a><var>4.13</var>proceedings in the name of the state against the company, applicant, organization, or <br/>
<a id="pl.4.14"></a><var>4.14</var>person upon the facts stated therein.<br/>
<a id="pl.4.15"></a><var>4.15</var>(b) No later than 60 days following completion of the examination, the examiner <br/>
<a id="pl.4.16"></a><var>4.16</var>in charge shall file with the department a verified written report of examination under <br/>
<a id="pl.4.17"></a><var>4.17</var>oath. Upon receipt of the verified report, the department shall transmit the report to the <br/>
<a id="pl.4.18"></a><var>4.18</var>company examined, together with a notice which provides the company examined with a <br/>
<a id="pl.4.19"></a><var>4.19</var>reasonable opportunity of not more than 30 days to make a written submission or rebuttal <br/>
<a id="pl.4.20"></a><var>4.20</var>with respect to matters contained in the examination report.<br/>
<a id="pl.4.21"></a><var>4.21</var>(c) Within 30 days of the end of the period allowed for the receipt of written <br/>
<a id="pl.4.22"></a><var>4.22</var>submissions or rebuttals, the commissioner shall fully consider and review the report, <br/>
<a id="pl.4.23"></a><var>4.23</var>together with the written submissions or rebuttals and the relevant portions of the <br/>
<a id="pl.4.24"></a><var>4.24</var>examiner's workpapers and enter an order:<br/>
<a id="pl.4.25"></a><var>4.25</var>(1) adopting the examination report as filed or with modification or corrections. If <br/>
<a id="pl.4.26"></a><var>4.26</var>the examination report reveals that the company is operating in violation of any law, rule, <br/>
<a id="pl.4.27"></a><var>4.27</var>or prior order of the commissioner, the commissioner may order the company to take any <br/>
<a id="pl.4.28"></a><var>4.28</var>action the commissioner considers necessary and appropriate to cure the violation;<br/>
<a id="pl.4.29"></a><var>4.29</var>(2) rejecting the examination report with directions to the examiners to reopen the <br/>
<a id="pl.4.30"></a><var>4.30</var>examination for purposes of obtaining additional data, documentation, or information, <br/>
<a id="pl.4.31"></a><var>4.31</var>and refiling the report as required under paragraph (b); or<br/>
<a id="pl.4.32"></a><var>4.32</var>(3) calling for an investigatory hearing with no less than 20 days' notice to the <br/>
<a id="pl.4.33"></a><var>4.33</var>company for purposes of obtaining additional documentation, data, information, and <br/>
<a id="pl.4.34"></a><var>4.34</var>testimony.<br/>
<a id="pl.4.35"></a><var>4.35</var>(d)(1) All orders entered under paragraph (c), clause (1), must be accompanied by <br/>
<a id="pl.4.36"></a><var>4.36</var>findings and conclusions resulting from the commissioner's consideration and review of <br/>
<a id="pl.5.1"></a><var>5.1</var>the examination report, relevant examiner workpapers, and any written submissions or <br/>
<a id="pl.5.2"></a><var>5.2</var>rebuttals. The order is a final administrative decision and may be appealed as provided <br/>
<a id="pl.5.3"></a><var>5.3</var>under chapter 14. The order must be served upon the company by certified mail, together <br/>
<a id="pl.5.4"></a><var>5.4</var>with a copy of the adopted examination report. Within 30 days of the issuance of the <br/>
<a id="pl.5.5"></a><var>5.5</var>adopted report, the company shall file affidavits executed by each of its directors stating <br/>
<a id="pl.5.6"></a><var>5.6</var>under oath that they have received a copy of the adopted report and related orders.<br/>
<a id="pl.5.7"></a><var>5.7</var>(2) A hearing conducted under paragraph (c), clause (3), by the commissioner or <br/>
<a id="pl.5.8"></a><var>5.8</var>authorized representative, must be conducted as a nonadversarial confidential investigatory <br/>
<a id="pl.5.9"></a><var>5.9</var>proceeding as necessary for the resolution of inconsistencies, discrepancies, or disputed <br/>
<a id="pl.5.10"></a><var>5.10</var>issues apparent upon the face of the filed examination report or raised by or as a result of <br/>
<a id="pl.5.11"></a><var>5.11</var>the commissioner's review of relevant workpapers or by the written submission or rebuttal <br/>
<a id="pl.5.12"></a><var>5.12</var>of the company. Within 20 days of the conclusion of the hearing, the commissioner shall <br/>
<a id="pl.5.13"></a><var>5.13</var>enter an order as required under paragraph (c), clause (1).<br/>
<a id="pl.5.14"></a><var>5.14</var>(3) The commissioner shall not appoint an examiner as an authorized representative <br/>
<a id="pl.5.15"></a><var>5.15</var>to conduct the hearing. The hearing must proceed expeditiously. Discovery by the <br/>
<a id="pl.5.16"></a><var>5.16</var>company is limited to the examiner's workpapers which tend to substantiate assertions in a <br/>
<a id="pl.5.17"></a><var>5.17</var>written submission or rebuttal. The commissioner or the commissioner's representative <br/>
<a id="pl.5.18"></a><var>5.18</var>may issue subpoenas for the attendance of witnesses or the production of documents <br/>
<a id="pl.5.19"></a><var>5.19</var>considered relevant to the investigation whether under the control of the department, the <br/>
<a id="pl.5.20"></a><var>5.20</var>company, or other persons. The documents produced must be included in the record. <br/>
<a id="pl.5.21"></a><var>5.21</var>Testimony taken by the commissioner or the commissioner's representative must be under <br/>
<a id="pl.5.22"></a><var>5.22</var>oath and preserved for the record.<br/>
<a id="pl.5.23"></a><var>5.23</var>This section does not require the department to disclose information or records <br/>
<a id="pl.5.24"></a><var>5.24</var>which would indicate or show the existence or content of an investigation or activity of a <br/>
<a id="pl.5.25"></a><var>5.25</var>criminal justice agency.<br/>
<a id="pl.5.26"></a><var>5.26</var>(4) The hearing must proceed with the commissioner or the commissioner's <br/>
<a id="pl.5.27"></a><var>5.27</var>representative posing questions to the persons subpoenaed. Thereafter, the company and <br/>
<a id="pl.5.28"></a><var>5.28</var>the department may present testimony relevant to the investigation. Cross-examination <br/>
<a id="pl.5.29"></a><var>5.29</var>may be conducted only by the commissioner or the commissioner's representative. The <br/>
<a id="pl.5.30"></a><var>5.30</var>company and the department shall be permitted to make closing statements and may <br/>
<a id="pl.5.31"></a><var>5.31</var>be represented by counsel of their choice.<br/>
<a id="pl.5.32"></a><var>5.32</var>(e)(1) Upon the adoption of the examination report under paragraph (c), clause (1), <br/>
<a id="pl.5.33"></a><var>5.33</var>the commissioner shall continue to hold the content of the examination report as private <br/>
<a id="pl.5.34"></a><var>5.34</var>and confidential information for a period of 30 days except as otherwise provided in <br/>
<a id="pl.5.35"></a><var>5.35</var>paragraph (b). Thereafter, the commissioner may open the report for public inspection if a <br/>
<a id="pl.5.36"></a><var>5.36</var>court of competent jurisdiction has not stayed its publication.<br/>
<a id="pl.6.1"></a><var>6.1</var>(2) Nothing contained in this subdivision prevents or shall be construed as <br/>
<a id="pl.6.2"></a><var>6.2</var>prohibiting the commissioner from disclosing the content of an examination report, <br/>
<a id="pl.6.3"></a><var>6.3</var>preliminary examination report or results, or any matter relating to the reports, to the <br/>
<a id="pl.6.4"></a><var>6.4</var>Commerce Department or the insurance department of another state or country, or to law <br/>
<a id="pl.6.5"></a><var>6.5</var>enforcement officials of this or another state or agency of the federal government at any <br/>
<a id="pl.6.6"></a><var>6.6</var>time, if the agency or office receiving the report or matters relating to the report agrees in <br/>
<a id="pl.6.7"></a><var>6.7</var>writing to hold it confidential and in a manner consistent with this subdivision.<br/>
<a id="pl.6.8"></a><var>6.8</var>(3) If the commissioner determines that regulatory action is appropriate as a result of <br/>
<a id="pl.6.9"></a><var>6.9</var>an examination, the commissioner may initiate proceedings or actions as provided by law.<br/>
<a id="pl.6.10"></a><var>6.10</var>(f) All working papers, recorded information, documents and copies thereof <br/>
<a id="pl.6.11"></a><var>6.11</var>produced by, obtained by, or disclosed to the commissioner or any other person in the <br/>
<a id="pl.6.12"></a><var>6.12</var>course of an examination made under this subdivision, or in the course of market analysis, <br/>
<a id="pl.6.13"></a><var>6.13</var> must be given confidential treatment and are not subject to subpoena and may not be made <br/>
<a id="pl.6.14"></a><var>6.14</var>public by the commissioner or any other person, except to the extent provided in paragraph <br/>
<a id="pl.6.15"></a><var>6.15</var>(e). Access may also be granted to the National Association of Insurance Commissioners <br/>
<a id="pl.6.16"></a><var>6.16</var>(NAIC), the National Association of Securities Dealers Financial Industry Regulatory <br/>
<a id="pl.6.17"></a><var>6.17</var>Authority, and any national securities association registered under the Securities Exchange <br/>
<a id="pl.6.18"></a><var>6.18</var>Act of 1934. The parties must agree in writing prior to receiving the information to <br/>
<a id="pl.6.19"></a><var>6.19</var>provide to it the same confidential treatment as required by this section, unless the prior <br/>
<a id="pl.6.20"></a><var>6.20</var>written consent of the company to which it pertains has been obtained. For purposes of <br/>
<a id="pl.6.21"></a><var>6.21</var>this section, "market analysis" means a process whereby market conduct surveillance <br/>
<a id="pl.6.22"></a><var>6.22</var>personnel collect and analyze information from filed schedules, surveys, required reports, <br/>
<a id="pl.6.23"></a><var>6.23</var>such as the NAIC Market Conduct Annual Statement, or other sources in order to develop <br/>
<a id="pl.6.24"></a><var>6.24</var>a baseline profile of an insurer, review the operation or activity of an insurer, or to <br/>
<a id="pl.6.25"></a><var>6.25</var>identify patterns or practices of insurers licensed to do business in this state that deviate <br/>
<a id="pl.6.26"></a><var>6.26</var>significantly from the norm or that may pose a potential risk to the insurance consumer.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.6.27"></a><var>6.27</var>    Sec. 5. Minnesota Statutes 2008, section 60A.084, is amended to read:<br/>
<a id="pl.6.28"></a><var>6.28</var><b>60A.084 NOTIFICATION ON GROUP POLICIES.</b><br/>
<a id="pl.6.29"></a><var>6.29</var>An employer providing life or health benefits may not change benefits, limit <br/>
<a id="pl.6.30"></a><var>6.30</var>coverage, or otherwise restrict participation until the certificate holder or enrollee has <br/>
<a id="pl.6.31"></a><var>6.31</var>been notified of any changes, limitations, or restrictions. Notice in a format which <br/>
<a id="pl.6.32"></a><var>6.32</var>meets the requirements of the Employee Retirement Income Security Act, United States <br/>
<a id="pl.6.33"></a><var>6.33</var>Code Annotated, title 29, sections 1001 to 1461, United States Department of Labor is <br/>
<a id="pl.6.34"></a><var>6.34</var>satisfactory for compliance with this section.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.7.1"></a><var>7.1</var>    Sec. 6. Minnesota Statutes 2008, section 60A.204, is amended to read:<br/>
<a id="pl.7.2"></a><var>7.2</var><b>60A.204 </b><b>ADDITIONAL CHARGES AND</b><b> FEES</b><b> AND COMMISSIONS</b><b>.</b><br/>
<a id="pl.7.3"></a><var>7.3</var>    Subdivision 1. <b>Placement fees.</b> A surplus lines licensee may charge, in addition to <br/>
<a id="pl.7.4"></a><var>7.4</var>the premium charged by an eligible or ineligible surplus lines insurer, a fee to cover the <br/>
<a id="pl.7.5"></a><var>7.5</var>cost incurred in the placement of the policy which exceeds $25, but only to the extent that <br/>
<a id="pl.7.6"></a><var>7.6</var>the actual additional cost incurred for services performed by persons or entities unrelated <br/>
<a id="pl.7.7"></a><var>7.7</var>to the licensee exceeds that amount.<br/>
<a id="pl.7.8"></a><var>7.8</var>    Subd. 2. <b>Regulation of fees.</b> A surplus lines licensee may charge a fee charged <br/>
<a id="pl.7.9"></a><var>7.9</var>pursuant to subdivision 1 shall and commission, in addition to the premium, that is not be <br/>
<a id="pl.7.10"></a><var>7.10</var>excessive or discriminatory. The licensee shall maintain complete documentation of all <br/>
<a id="pl.7.11"></a><var>7.11</var>fees and commissions charged. Those fees shall not be included as part of the premium for <br/>
<a id="pl.7.12"></a><var>7.12</var>purposes of the computation of the premium taxes.<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 3. <b>Commission charges.</b> Notwithstanding the provisions of subdivision 1, a <br/>
<a id="pl.7.14"></a><var>7.14</var>licensee may add a commission charge if the insurer quotes a rate net of commission and <br/>
<a id="pl.7.15"></a><var>7.15</var>the commission is not excessive or discriminatory.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.7.16"></a><var>7.16</var>    Sec. 7. Minnesota Statutes 2008, section 60A.36, is amended by adding a subdivision <br/>
<a id="pl.7.17"></a><var>7.17</var>to read:<br/>
<a id="pl.7.18"></a><var>7.18</var>    Subd. 2a. <b>Third-party notices.</b> An insurer shall provide notice to a third party if:<br/>
<a id="pl.7.19"></a><var>7.19</var>(1) the policyholder has, separately from the certificate, notified the insurer of the <br/>
<a id="pl.7.20"></a><var>7.20</var>identity of the third party; and<br/>
<a id="pl.7.21"></a><var>7.21</var>(2) the third party is a licensing authority authorized by statute to receive the notice or <br/>
<a id="pl.7.22"></a><var>7.22</var>a state, city, or county governmental unit on whose behalf the insured is providing services.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.7.23"></a><var>7.23</var>    Sec. 8. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 1, is <br/>
<a id="pl.7.24"></a><var>7.24</var>amended to read:<br/>
<a id="pl.7.25"></a><var>7.25</var>    Subdivision 1. <b>Issuance.</b> A licensed insurer or insurance producer may provide to a <br/>
<a id="pl.7.26"></a><var>7.26</var>third party a certificate of insurance which documents insurance coverage. The purpose of <br/>
<a id="pl.7.27"></a><var>7.27</var>For the purposes of this chapter, a certificate of insurance is to provide a document that <br/>
<a id="pl.7.28"></a><var>7.28</var>provides evidence of property or liability insurance coverage and the amount of insurance <br/>
<a id="pl.7.29"></a><var>7.29</var>issued, and does not convey any contractual rights to the certificate holder.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.7.30"></a><var>7.30</var>    Sec. 9. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 4, is <br/>
<a id="pl.7.31"></a><var>7.31</var>amended to read:<br/>
<a id="pl.8.1"></a><var>8.1</var>    Subd. 4. <b>Cancellation notice.</b> A certificate provided to a third party must not <br/>
<a id="pl.8.2"></a><var>8.2</var>provide for notice of cancellation that exceeds the statutory notice of cancellation provided <br/>
<a id="pl.8.3"></a><var>8.3</var>to the policyholder or a period of notice specified in the policy.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.8.4"></a><var>8.4</var>    Sec. 10. Minnesota Statutes 2009 Supplement, section 60A.39, subdivision 5, is <br/>
<a id="pl.8.5"></a><var>8.5</var>amended to read:<br/>
<a id="pl.8.6"></a><var>8.6</var>    Subd. 5. <b>Filing.</b> An insurer not using the standard ACORD or ISO form "Certificate <br/>
<a id="pl.8.7"></a><var>8.7</var>of Insurance" shall file with the commissioner, prior to its use, the form of certificate or <br/>
<a id="pl.8.8"></a><var>8.8</var>memorandum of insurance coverage that will be used a similar alternative "Certificate <br/>
<a id="pl.8.9"></a><var>8.9</var>of Insurance" covering the same information for use by the insurer. Filed forms may not <br/>
<a id="pl.8.10"></a><var>8.10</var>be amended at the request of a third party.<br/>
<a id="pl.8.11"></a><var>8.11</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2011.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.8.12"></a><var>8.12</var>    Sec. 11. Minnesota Statutes 2009 Supplement, section 60A.9572, subdivision 6, <br/>
<a id="pl.8.13"></a><var>8.13</var>is amended to read:<br/>
<a id="pl.8.14"></a><var>8.14</var>    Subd. 6. <b>Disclosures.</b> The applicant shall provide information on forms required <br/>
<a id="pl.8.15"></a><var>8.15</var>by the commissioner. The commissioner shall have authority, at any time, to require <br/>
<a id="pl.8.16"></a><var>8.16</var>the applicant to fully disclose the identity of all stockholders who hold more than ten <br/>
<a id="pl.8.17"></a><var>8.17</var>percent of the shares of the company, partners, officers, members, and employees, and <br/>
<a id="pl.8.18"></a><var>8.18</var>the commissioner may, in the exercise of the commissioner's discretion, refuse to issue a <br/>
<a id="pl.8.19"></a><var>8.19</var>license in the name of a legal entity if not satisfied that any officer, employee, stockholder, <br/>
<a id="pl.8.20"></a><var>8.20</var>partner, or member of the legal entity who may materially influence the applicant's <br/>
<a id="pl.8.21"></a><var>8.21</var>conduct meets the standards of sections 
         <statute_ref>60A.957</statute_ref> to 
         <statute_ref>60A.9585</statute_ref>.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.8.22"></a><var>8.22</var>    Sec. 12. Minnesota Statutes 2008, section 60K.31, subdivision 10, is amended to read:<br/>
<a id="pl.8.23"></a><var>8.23</var>    Subd. 10. <b>Limited lines insurance.</b> "Limited lines insurance" means those lines <br/>
<a id="pl.8.24"></a><var>8.24</var>of insurance defined in section 
         <statute_ref>60K.38, subdivision 1</statute_ref>, paragraph (c), or any other line of <br/>
<a id="pl.8.25"></a><var>8.25</var>insurance that the commissioner considers necessary to recognize for the purposes of <br/>
<a id="pl.8.26"></a><var>8.26</var>complying with section 
         <statute_ref>60K.39, subdivision 5 6</statute_ref>.  <br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.8.27"></a><var>8.27</var>    Sec. 13. Minnesota Statutes 2009 Supplement, section 60K.361, is amended to read:<br/>
<a id="pl.8.28"></a><var>8.28</var><b>60K.361 INSURANCE EDUCATION.</b><br/>
<a id="pl.8.29"></a><var>8.29</var>    (a) Prelicense education must consist of 20 hours of education per line of authority.<br/>
<a id="pl.9.1"></a><var>9.1</var>    (b) The first ten hours course must be include an introduction to insurance and <br/>
<a id="pl.9.2"></a><var>9.2</var>insurance-related concepts covering all of the major lines of authority except variable life <br/>
<a id="pl.9.3"></a><var>9.3</var>and variable annuities. The course must consist of the following:<br/>
<a id="pl.9.4"></a><var>9.4</var>    (1) rules, regulations, and law;<br/>
<a id="pl.9.5"></a><var>9.5</var>    (2) basic fundamentals of insurance;<br/>
<a id="pl.9.6"></a><var>9.6</var>    (3) property:<br/>
<a id="pl.9.7"></a><var>9.7</var>    (i) types of policies;<br/>
<a id="pl.9.8"></a><var>9.8</var>    (ii) policy provisions;<br/>
<a id="pl.9.9"></a><var>9.9</var>    (iii) perils, exclusions, deductibles, and liability; and<br/>
<a id="pl.9.10"></a><var>9.10</var>    (iv) evaluating needs;<br/>
<a id="pl.9.11"></a><var>9.11</var>    (4) casualty:<br/>
<a id="pl.9.12"></a><var>9.12</var>    (i) types of policies;<br/>
<a id="pl.9.13"></a><var>9.13</var>    (ii) policy provisions;<br/>
<a id="pl.9.14"></a><var>9.14</var>    (iii) perils, exclusions, deductibles, and liability; and<br/>
<a id="pl.9.15"></a><var>9.15</var>    (iv) evaluating needs;<br/>
<a id="pl.9.16"></a><var>9.16</var>    (5) life:<br/>
<a id="pl.9.17"></a><var>9.17</var>    (i) types of policies;<br/>
<a id="pl.9.18"></a><var>9.18</var>    (ii) policy provisions; and<br/>
<a id="pl.9.19"></a><var>9.19</var>    (iii) group insurance; and<br/>
<a id="pl.9.20"></a><var>9.20</var>    (6) accident and health:<br/>
<a id="pl.9.21"></a><var>9.21</var>    (i) types of policies;<br/>
<a id="pl.9.22"></a><var>9.22</var>    (ii) policy provisions; and<br/>
<a id="pl.9.23"></a><var>9.23</var>    (iii) group insurance.<br/>
<a id="pl.9.24"></a><var>9.24</var>    (c) The second ten hours of insurance prelicense education must be composed of <br/>
<a id="pl.9.25"></a><var>9.25</var>Courses that cover a specific major line of authority and consist of must include the <br/>
<a id="pl.9.26"></a><var>9.26</var>following:<br/>
<a id="pl.9.27"></a><var>9.27</var>    (1) life:<br/>
<a id="pl.9.28"></a><var>9.28</var>    (i) types of life insurance policies; and<br/>
<a id="pl.9.29"></a><var>9.29</var>    (ii) Minnesota laws, rules, and regulations pertinent to life insurance;<br/>
<a id="pl.9.30"></a><var>9.30</var>    (2) accident and health:<br/>
<a id="pl.9.31"></a><var>9.31</var>    (i) types of health insurance policies; and<br/>
<a id="pl.9.32"></a><var>9.32</var>    (ii) Minnesota laws, rules, and regulations pertinent to accident and health insurance;<br/>
<a id="pl.9.33"></a><var>9.33</var>    (3) property:<br/>
<a id="pl.9.34"></a><var>9.34</var>    (i) personal lines;<br/>
<a id="pl.9.35"></a><var>9.35</var>    (ii) commercial lines; and<br/>
<a id="pl.9.36"></a><var>9.36</var>    (iii) Minnesota laws, rules, and regulations pertinent to property insurance.<br/>
<a id="pl.10.1"></a><var>10.1</var>    (4) casualty:<br/>
<a id="pl.10.2"></a><var>10.2</var>    (i) personal lines;<br/>
<a id="pl.10.3"></a><var>10.3</var>    (ii) commercial lines; and<br/>
<a id="pl.10.4"></a><var>10.4</var>    (iii) Minnesota laws, rules, and regulations pertinent to casualty insurance; and<br/>
<a id="pl.10.5"></a><var>10.5</var>    (5) personal lines:<br/>
<a id="pl.10.6"></a><var>10.6</var>    (i) types of property/casualty personal lines insurance policies; and<br/>
<a id="pl.10.7"></a><var>10.7</var>    (ii) Minnesota laws, rules, and regulations pertinent to property/casualty personal <br/>
<a id="pl.10.8"></a><var>10.8</var>lines insurance.<br/>
<a id="pl.10.9"></a><var>10.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.10.10"></a><var>10.10</var>    Sec. 14. Minnesota Statutes 2008, section 61A.092, subdivision 3, is amended to read:<br/>
<a id="pl.10.11"></a><var>10.11</var>    Subd. 3. <b>Notice of options.</b> Upon termination of or layoff from employment <br/>
<a id="pl.10.12"></a><var>10.12</var>of a covered employee, the employer shall inform the employee within 14 days after <br/>
<a id="pl.10.13"></a><var>10.13</var>termination or layoff of:<br/>
<a id="pl.10.14"></a><var>10.14</var>(1) the employee's right to elect to continue the coverage;<br/>
<a id="pl.10.15"></a><var>10.15</var>(2) the amount the employee must pay monthly to the employer to retain the <br/>
<a id="pl.10.16"></a><var>10.16</var>coverage;<br/>
<a id="pl.10.17"></a><var>10.17</var>(3) the manner in which and the office of the employer to which the payment to <br/>
<a id="pl.10.18"></a><var>10.18</var>the employer must be made; and<br/>
<a id="pl.10.19"></a><var>10.19</var>(4) the time by which the payments to the employer must be made to retain coverage.<br/>
<a id="pl.10.20"></a><var>10.20</var>The employee has 60 days within which to elect coverage. The 60-day period shall <br/>
<a id="pl.10.21"></a><var>10.21</var>begin to run on the date coverage would otherwise terminate or on the date upon which <br/>
<a id="pl.10.22"></a><var>10.22</var>notice of the right to coverage is received, whichever is later.<br/>
<a id="pl.10.23"></a><var>10.23</var>If the covered employee or covered dependent dies during the 60-day election period <br/>
<a id="pl.10.24"></a><var>10.24</var>and before the covered employee makes an election to continue or reject continuation, <br/>
<a id="pl.10.25"></a><var>10.25</var>then the covered employee will be considered to have elected continuation of coverage. <br/>
<a id="pl.10.26"></a><var>10.26</var>The beneficiary previously selected by the former employee or covered dependent would <br/>
<a id="pl.10.27"></a><var>10.27</var>then be entitled to a death benefit equal to the amount of insurance that could have been <br/>
<a id="pl.10.28"></a><var>10.28</var>continued less any unpaid premium owing as of the date of death.<br/>
<a id="pl.10.29"></a><var>10.29</var>Notice must be in writing and sent by first class mail to the employee's last known <br/>
<a id="pl.10.30"></a><var>10.30</var>address which the employee has provided to the employer.<br/>
<a id="pl.10.31"></a><var>10.31</var>A notice in substantially the following form is sufficient: "As a terminated or laid <br/>
<a id="pl.10.32"></a><var>10.32</var>off employee, the law authorizes you to maintain your group insurance benefits, in an <br/>
<a id="pl.10.33"></a><var>10.33</var>amount equal to the amount of insurance in effect on the date you terminated or were laid <br/>
<a id="pl.10.34"></a><var>10.34</var>off from employment, for a period of up to 18 months. To do so, you must notify your <br/>
<a id="pl.10.35"></a><var>10.35</var>former employer within 60 days of your receipt of this notice that you intend to retain this <br/>
<a id="pl.11.1"></a><var>11.1</var>coverage and must make a monthly payment of $............ at ............. by the ............. of <br/>
<a id="pl.11.2"></a><var>11.2</var>each month."<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.11.3"></a><var>11.3</var>    Sec. 15. Minnesota Statutes 2008, section 62A.046, subdivision 6, is amended to read:<br/>
<a id="pl.11.4"></a><var>11.4</var>    Subd. 6. <b>Coordination of benefits.</b> Insurers, vendors of risk management <br/>
<a id="pl.11.5"></a><var>11.5</var>services, nonprofit health service plan corporations, fraternals, and health maintenance <br/>
<a id="pl.11.6"></a><var>11.6</var>organizations may coordinate benefits to prohibit greater than 100 percent coverage when <br/>
<a id="pl.11.7"></a><var>11.7</var>an insured, subscriber, or enrollee is covered by both an individual and a group contract <br/>
<a id="pl.11.8"></a><var>11.8</var>providing coverage for hospital and medical treatment or expenses. Benefits coordinated <br/>
<a id="pl.11.9"></a><var>11.9</var>under this paragraph must provide for 100 percent coverage of an insured, subscriber, <br/>
<a id="pl.11.10"></a><var>11.10</var>or enrollee. To the extent appropriate, all coordination of benefits provisions currently <br/>
<a id="pl.11.11"></a><var>11.11</var>applicable by law or rule to insurers, vendors of risk management services, nonprofit <br/>
<a id="pl.11.12"></a><var>11.12</var>health service plan corporations, fraternals, and health maintenance organizations, shall <br/>
<a id="pl.11.13"></a><var>11.13</var>apply to coordination of benefits between individual and group contracts, except that the <br/>
<a id="pl.11.14"></a><var>11.14</var>group contract shall always be the primary plan.  Notwithstanding the definition of "plan" <br/>
<a id="pl.11.15"></a><var>11.15</var>in Minnesota Rules, part 2742.0200, subpart 2, and in Minnesota Rules, part 4685.0910, <br/>
<a id="pl.11.16"></a><var>11.16</var>subpart 7, an individual contract must coordinate benefits with a group contract under this <br/>
<a id="pl.11.17"></a><var>11.17</var>subdivision consistent with applicable coordination of benefit rules. When a covered <br/>
<a id="pl.11.18"></a><var>11.18</var>person's other coverage is Medicare or TRICARE, a health plan company must determine <br/>
<a id="pl.11.19"></a><var>11.19</var>primacy and coordinate benefits in accordance with the Medicare Secondary Payor or <br/>
<a id="pl.11.20"></a><var>11.20</var>TRICARE provisions of federal law. This paragraph does not apply to specified accident, <br/>
<a id="pl.11.21"></a><var>11.21</var>hospital indemnity, specified disease, or other limited benefit insurance policies.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.11.22"></a><var>11.22</var>    Sec. 16. Minnesota Statutes 2008, section 62A.046, is amended by adding a <br/>
<a id="pl.11.23"></a><var>11.23</var>subdivision to read:<br/>
<a id="pl.11.24"></a><var>11.24</var>    Subd. 7. <b>High-deductible health plans.</b> If a health carrier is advised by a covered <br/>
<a id="pl.11.25"></a><var>11.25</var>person that all health plans covering the person are high-deductible health plans and <br/>
<a id="pl.11.26"></a><var>11.26</var>the person intends to contribute to a health savings account established in accordance <br/>
<a id="pl.11.27"></a><var>11.27</var>with section 223 of the Internal Revenue Code of 1986, the primary high-deductible <br/>
<a id="pl.11.28"></a><var>11.28</var>health plan's deductible is not an allowable expense, except for any health care expense <br/>
<a id="pl.11.29"></a><var>11.29</var>incurred that may not be subject to the deductible as described in section 223(c)(2)(C) of <br/>
<a id="pl.11.30"></a><var>11.30</var>the Internal Revenue Code of 1986.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.11.31"></a><var>11.31</var>    Sec. 17. Minnesota Statutes 2008, section 62A.17, subdivision 5, is amended to read:<br/>
<a id="pl.12.1"></a><var>12.1</var>    Subd. 5. <b>Notice of options.</b> Upon the termination of or lay off from employment of <br/>
<a id="pl.12.2"></a><var>12.2</var>an eligible employee, the employer shall inform the employee within ten 14 days after <br/>
<a id="pl.12.3"></a><var>12.3</var>termination or lay off of:<br/>
<a id="pl.12.4"></a><var>12.4</var>(a) (1) the right to elect to continue the coverage;<br/>
<a id="pl.12.5"></a><var>12.5</var>(b) (2) the amount the employee must pay monthly to the employer to retain the <br/>
<a id="pl.12.6"></a><var>12.6</var>coverage;<br/>
<a id="pl.12.7"></a><var>12.7</var>(c) (3) the manner in which and the office of the employer to which the payment to <br/>
<a id="pl.12.8"></a><var>12.8</var>the employer must be made; and<br/>
<a id="pl.12.9"></a><var>12.9</var>(d) (4) the time by which the payments to the employer must be made to retain <br/>
<a id="pl.12.10"></a><var>12.10</var>coverage.<br/>
<a id="pl.12.11"></a><var>12.11</var>If the policy, contract, or health care plan is administered by a trust, the employer is <br/>
<a id="pl.12.12"></a><var>12.12</var>relieved of the obligation imposed by clauses (a) (1) to (d) (4). The trust shall inform the <br/>
<a id="pl.12.13"></a><var>12.13</var>employee of the information required by clauses (a) (1) to (d) (4).<br/>
<a id="pl.12.14"></a><var>12.14</var>The employee shall have 60 days within which to elect coverage. The 60-day period <br/>
<a id="pl.12.15"></a><var>12.15</var>shall begin to run on the date plan coverage would otherwise terminate or on the date upon <br/>
<a id="pl.12.16"></a><var>12.16</var>which notice of the right to coverage is received, whichever is later.<br/>
<a id="pl.12.17"></a><var>12.17</var>Notice must be in writing and sent by first class mail to the employee's last known <br/>
<a id="pl.12.18"></a><var>12.18</var>address which the employee has provided the employer or trust.<br/>
<a id="pl.12.19"></a><var>12.19</var>A notice in substantially the following form shall be sufficient: "As a terminated or <br/>
<a id="pl.12.20"></a><var>12.20</var>laid off employee, the law authorizes you to maintain your group medical insurance for <br/>
<a id="pl.12.21"></a><var>12.21</var>a period of up to 18 months. To do so you must notify your former employer within 60 <br/>
<a id="pl.12.22"></a><var>12.22</var>days of your receipt of this notice that you intend to retain this coverage and must make a <br/>
<a id="pl.12.23"></a><var>12.23</var>monthly payment of $.......... to ........... at .......... by the ............... of each month."<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.12.24"></a><var>12.24</var>    Sec. 18. Minnesota Statutes 2008, section 62A.3099, subdivision 17, is amended to <br/>
<a id="pl.12.25"></a><var>12.25</var>read:<br/>
<a id="pl.12.26"></a><var>12.26</var>    Subd. 17. <b>Medicare-related coverage.</b> "Medicare-related coverage" means a <br/>
<a id="pl.12.27"></a><var>12.27</var>policy, contract, or certificate issued as a supplement to Medicare, regulated under <br/>
<a id="pl.12.28"></a><var>12.28</var>sections 
         <statute_ref>62A.3099</statute_ref> to 
         <statute_ref>62A.44</statute_ref>, including Medicare select coverage; policies, contracts, <br/>
<a id="pl.12.29"></a><var>12.29</var>or certificates that supplement Medicare issued by health maintenance organizations; or <br/>
<a id="pl.12.30"></a><var>12.30</var>policies, contracts, or certificates governed by section 1833 (known as "cost" or "HCPP" <br/>
<a id="pl.12.31"></a><var>12.31</var>contracts) or 1876 (known as "TEFRA" or "risk" "Cost" contracts) of the federal Social <br/>
<a id="pl.12.32"></a><var>12.32</var>Security Act, United States Code, title 42, section 1395, et seq., as amended; or Section <br/>
<a id="pl.12.33"></a><var>12.33</var>4001 of the Balanced Budget Act of 1997 (BBA)(Public Law 105-33), Sections 1851 to <br/>
<a id="pl.12.34"></a><var>12.34</var>1859 of the Social Security Act establishing Part C of the Medicare program, known as <br/>
<a id="pl.12.35"></a><var>12.35</var>the "Medicare Advantage program."<br/>
<a id="pl.13.1"></a><var>13.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.13.2"></a><var>13.2</var>    Sec. 19. Minnesota Statutes 2009 Supplement, section 62A.3099, subdivision 18, <br/>
<a id="pl.13.3"></a><var>13.3</var>is amended to read:<br/>
<a id="pl.13.4"></a><var>13.4</var>    Subd. 18. <b>Medicare supplement policy or certificate.</b> "Medicare supplement <br/>
<a id="pl.13.5"></a><var>13.5</var>policy or certificate" means a group or individual policy of accident and sickness insurance <br/>
<a id="pl.13.6"></a><var>13.6</var>or a subscriber contract of hospital and medical service associations or health maintenance <br/>
<a id="pl.13.7"></a><var>13.7</var>organizations, other than those policies or certificates covered by section 1833 1876 of the <br/>
<a id="pl.13.8"></a><var>13.8</var>federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued <br/>
<a id="pl.13.9"></a><var>13.9</var>policy under a demonstration project specified under amendments to the federal Social <br/>
<a id="pl.13.10"></a><var>13.10</var>Security Act, which is advertised, marketed, or designed primarily as a supplement to <br/>
<a id="pl.13.11"></a><var>13.11</var>reimbursements under Medicare for the hospital, medical, or surgical expenses of persons <br/>
<a id="pl.13.12"></a><var>13.12</var>eligible for Medicare or as a supplement to Medicare Advantage plans established under <br/>
<a id="pl.13.13"></a><var>13.13</var>Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage <br/>
<a id="pl.13.14"></a><var>13.14</var>plans established under Medicare Part C, outpatient prescription drug plans established <br/>
<a id="pl.13.15"></a><var>13.15</var>under Medicare Part D, or any health care prepayment plan that provides benefits under an <br/>
<a id="pl.13.16"></a><var>13.16</var>agreement under section 1833(a)(1)(A) of the Social Security Act, or any policy issued to <br/>
<a id="pl.13.17"></a><var>13.17</var>an employer or employers or to the trustee of a fund established by an employer where <br/>
<a id="pl.13.18"></a><var>13.18</var>only employees or retirees, and dependents of employees or retirees, are eligible for <br/>
<a id="pl.13.19"></a><var>13.19</var>coverage, or any policy issued to a labor union or similar employee organization.<br/>
<a id="pl.13.20"></a><var>13.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.13.21"></a><var>13.21</var>    Sec. 20. Minnesota Statutes 2008, section 62A.65, subdivision 2, is amended to read:<br/>
<a id="pl.13.22"></a><var>13.22</var>    Subd. 2. <b>Guaranteed renewal.</b> No individual health plan may be offered, sold, <br/>
<a id="pl.13.23"></a><var>13.23</var>issued, or renewed to a Minnesota resident unless the health plan provides that the plan <br/>
<a id="pl.13.24"></a><var>13.24</var>is guaranteed renewable at a premium rate that does not take into account the claims <br/>
<a id="pl.13.25"></a><var>13.25</var>experience or any change in the health status of any covered person that occurred after <br/>
<a id="pl.13.26"></a><var>13.26</var>the initial issuance of the health plan to the person. The premium rate upon renewal <br/>
<a id="pl.13.27"></a><var>13.27</var>must also otherwise comply with this section. A health carrier must not refuse to renew <br/>
<a id="pl.13.28"></a><var>13.28</var>an individual health plan prior to enrollment in Medicare Parts A and B, except for <br/>
<a id="pl.13.29"></a><var>13.29</var>nonpayment of premiums, fraud, or misrepresentation.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.13.30"></a><var>13.30</var>    Sec. 21. Minnesota Statutes 2008, section 62E.02, subdivision 15, is amended to read:<br/>
<a id="pl.13.31"></a><var>13.31</var>    Subd. 15. <b>Medicare.</b> "Medicare" means part A and part B of the United States <br/>
<a id="pl.13.32"></a><var>13.32</var>Social Security Act, title XVIII, as amended, United States Code, title 42, sections 1394, et <br/>
<a id="pl.13.33"></a><var>13.33</var>seq. the Health Insurance for the Aged Act, title XVIII of the Social Security Amendments <br/>
<a id="pl.14.1"></a><var>14.1</var>of 1965, United States Code, title 42, sections 1395 to 1395hhh, as amended, or title I, <br/>
<a id="pl.14.2"></a><var>14.2</var>part I, of Public Law 89-97, as amended.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.14.3"></a><var>14.3</var>    Sec. 22. Minnesota Statutes 2008, section 62E.14, subdivision 4c, is amended to read:<br/>
<a id="pl.14.4"></a><var>14.4</var>    Subd. 4c. <b>Waiver of preexisting conditions for persons whose coverage is </b><br/>
<a id="pl.14.5"></a><var>14.5</var><b>terminated or who exceed the maximum lifetime benefit.</b> (a) A Minnesota resident <br/>
<a id="pl.14.6"></a><var>14.6</var>may enroll in the comprehensive health plan with a waiver of the preexisting condition <br/>
<a id="pl.14.7"></a><var>14.7</var>limitation described in subdivision 3 if that persons's application for coverage is received <br/>
<a id="pl.14.8"></a><var>14.8</var>by the writing carrier no later than 90 days after termination of prior coverage and if the <br/>
<a id="pl.14.9"></a><var>14.9</var>termination is for reasons other than fraud or nonpayment of premiums.<br/>
<a id="pl.14.10"></a><var>14.10</var>For purposes of this paragraph, termination of prior coverage includes exceeding the <br/>
<a id="pl.14.11"></a><var>14.11</var>maximum lifetime benefit of existing coverage.<br/>
<a id="pl.14.12"></a><var>14.12</var>Coverage in the comprehensive health plan is effective on the date of termination <br/>
<a id="pl.14.13"></a><var>14.13</var>of prior coverage. The availability of conversion rights does not affect a person's rights <br/>
<a id="pl.14.14"></a><var>14.14</var>under this paragraph.<br/>
<a id="pl.14.15"></a><var>14.15</var>This section does not apply to prior coverage provided under policies designed <br/>
<a id="pl.14.16"></a><var>14.16</var>primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense <br/>
<a id="pl.14.17"></a><var>14.17</var>incurred basis, or policies providing only accident coverage.<br/>
<a id="pl.14.18"></a><var>14.18</var>(b) An eligible individual, as defined under the Health Insurance Portability and <br/>
<a id="pl.14.19"></a><var>14.19</var>Accountability Act (HIPAA), United States Code, chapter 42, section 300gg-41(b) may <br/>
<a id="pl.14.20"></a><var>14.20</var>enroll in the comprehensive health insurance plan with a waiver of the preexisting <br/>
<a id="pl.14.21"></a><var>14.21</var>condition limitation described in subdivision 3 and a waiver of the evidence of rejection or <br/>
<a id="pl.14.22"></a><var>14.22</var>similar events described in subdivision 1, clause (c). The eligible individual must apply <br/>
<a id="pl.14.23"></a><var>14.23</var>for enrollment under this paragraph by submitting a substantially complete application <br/>
<a id="pl.14.24"></a><var>14.24</var>that is received by the writing carrier no later than 63 days after termination of prior <br/>
<a id="pl.14.25"></a><var>14.25</var>coverage, and coverage under the comprehensive health insurance plan is effective as <br/>
<a id="pl.14.26"></a><var>14.26</var>of the date of receipt of the complete application. The six-month durational residency <br/>
<a id="pl.14.27"></a><var>14.27</var>requirement provided in section 
         <statute_ref>62E.02, subdivision 13</statute_ref>, does not apply with respect to <br/>
<a id="pl.14.28"></a><var>14.28</var>eligibility for enrollment under this paragraph, but the applicant must be a Minnesota <br/>
<a id="pl.14.29"></a><var>14.29</var>resident as of the date that the application was received by the writing carrier. A person's <br/>
<a id="pl.14.30"></a><var>14.30</var>eligibility to enroll under this paragraph does not affect the person's eligibility to enroll <br/>
<a id="pl.14.31"></a><var>14.31</var>under any other provision.  <br/>
<a id="pl.14.32"></a><var>14.32</var>(c) A qualifying individual, as defined in the Internal Revenue Code of 1986, section <br/>
<a id="pl.14.33"></a><var>14.33</var>35(e)(2)(B), who is eligible under the Federal Trade Act of 2002 for the credit Health <br/>
<a id="pl.14.34"></a><var>14.34</var>Coverage Tax Credit (HCTC) for health insurance costs under the Internal Revenue Code <br/>
<a id="pl.14.35"></a><var>14.35</var>of 1986, section 35, may enroll in the comprehensive health insurance plan with a waiver <br/>
<a id="pl.15.1"></a><var>15.1</var>of the preexisting condition limitation described in subdivision 3, and without presenting <br/>
<a id="pl.15.2"></a><var>15.2</var>evidence of rejection or similar requirements described in subdivision 1, paragraph (c). <br/>
<a id="pl.15.3"></a><var>15.3</var>The six-month durational residency requirement provided in section 
         <statute_ref>62E.02, subdivision <br/>
<a id="pl.15.4"></a><var>15.4</var>13
         </statute_ref>, does not apply with respect to eligibility for enrollment under this paragraph, but the <br/>
<a id="pl.15.5"></a><var>15.5</var>applicant must be a Minnesota resident as of the date of application. A person's eligibility <br/>
<a id="pl.15.6"></a><var>15.6</var>to enroll under this paragraph does not affect the person's eligibility to enroll under any <br/>
<a id="pl.15.7"></a><var>15.7</var>other provision. This paragraph is intended solely to meet the minimum requirements <br/>
<a id="pl.15.8"></a><var>15.8</var>necessary to qualify the comprehensive health insurance plan as qualified health coverage <br/>
<a id="pl.15.9"></a><var>15.9</var>under the Internal Revenue Code of 1986, section 35(e)(2).  <br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.15.10"></a><var>15.10</var>    Sec. 23. Minnesota Statutes 2008, section 62L.05, subdivision 4, is amended to read:<br/>
<a id="pl.15.11"></a><var>15.11</var>    Subd. 4. <b>Benefits.</b> The medical services and supplies listed in this subdivision are <br/>
<a id="pl.15.12"></a><var>15.12</var>the benefits that must be covered by the small employer plans described in subdivisions <br/>
<a id="pl.15.13"></a><var>15.13</var>2 and 3. Benefits under this subdivision may be provided through the managed care <br/>
<a id="pl.15.14"></a><var>15.14</var>procedures practiced by health carriers:<br/>
<a id="pl.15.15"></a><var>15.15</var>(1) inpatient and outpatient hospital services, excluding services provided for the <br/>
<a id="pl.15.16"></a><var>15.16</var>diagnosis, care, or treatment of chemical dependency or a mental illness or condition, <br/>
<a id="pl.15.17"></a><var>15.17</var>other than those conditions specified in clauses (10), and (11), and (12). The health <br/>
<a id="pl.15.18"></a><var>15.18</var>care services required to be covered under this clause must also be covered if rendered <br/>
<a id="pl.15.19"></a><var>15.19</var>in a nonhospital environment, on the same basis as coverage provided for those same <br/>
<a id="pl.15.20"></a><var>15.20</var>treatments or services if rendered in a hospital, provided, however, that this sentence must <br/>
<a id="pl.15.21"></a><var>15.21</var>not be interpreted as expanding the types or extent of services covered;<br/>
<a id="pl.15.22"></a><var>15.22</var>(2) physician, chiropractor, and nurse practitioner services for the diagnosis or <br/>
<a id="pl.15.23"></a><var>15.23</var>treatment of illnesses, injuries, or conditions;<br/>
<a id="pl.15.24"></a><var>15.24</var>(3) diagnostic x-rays and laboratory tests;<br/>
<a id="pl.15.25"></a><var>15.25</var>(4) ground transportation provided by a licensed ambulance service to the nearest <br/>
<a id="pl.15.26"></a><var>15.26</var>facility qualified to treat the condition, or as otherwise required by the health carrier;<br/>
<a id="pl.15.27"></a><var>15.27</var>(5) services of a home health agency if the services qualify as reimbursable services <br/>
<a id="pl.15.28"></a><var>15.28</var>under Medicare;<br/>
<a id="pl.15.29"></a><var>15.29</var>(6) services of a private duty registered nurse if medically necessary, as determined <br/>
<a id="pl.15.30"></a><var>15.30</var>by the health carrier;<br/>
<a id="pl.15.31"></a><var>15.31</var>(7) the rental or purchase, as appropriate, of durable medical equipment, other than <br/>
<a id="pl.15.32"></a><var>15.32</var>eyeglasses and hearing aids, unless coverage is required under section 
         <statute_ref>62Q.675</statute_ref>; <br/>
<a id="pl.15.33"></a><var>15.33</var>(8) child health supervision services up to age 18, as defined in section 
         <statute_ref>62A.047</statute_ref>; <br/>
<a id="pl.15.34"></a><var>15.34</var>(9) maternity and prenatal care services, as defined in sections 
         <statute_ref>62A.041</statute_ref> and 
         <statute_ref>62A.047</statute_ref>; <br/>
<a id="pl.16.1"></a><var>16.1</var>(10) inpatient hospital and outpatient services for the diagnosis and treatment of <br/>
<a id="pl.16.2"></a><var>16.2</var>certain mental illnesses or conditions, as defined by the International Classification of <br/>
<a id="pl.16.3"></a><var>16.3</var>Diseases-Clinical Modification (ICD-9-CM), seventh edition (1990) and as classified <br/>
<a id="pl.16.4"></a><var>16.4</var>as ICD-9 codes 295 to 299; and<br/>
<a id="pl.16.5"></a><var>16.5</var>(11) ten hours per year of outpatient mental health diagnosis or treatment for <br/>
<a id="pl.16.6"></a><var>16.6</var>illnesses or conditions not described in clause (10);<br/>
<a id="pl.16.7"></a><var>16.7</var>(12) 60 hours per year of outpatient treatment of chemical dependency; and<br/>
<a id="pl.16.8"></a><var>16.8</var>(13) (11) 50 percent of eligible charges for prescription drugs, up to a separate <br/>
<a id="pl.16.9"></a><var>16.9</var>annual maximum out-of-pocket expense of $1,000 per individual for prescription drugs, <br/>
<a id="pl.16.10"></a><var>16.10</var>and 100 percent of eligible charges thereafter.<br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.16.11"></a><var>16.11</var>    Sec. 24. <b>[62L.0561] FLEXIBLE BENEFITS PLANS.</b><br/>
<a id="pl.16.12"></a><var>16.12</var>    Subdivision 1. <b>Definitions.</b> For the purposes of this section, the terms used in this <br/>
<a id="pl.16.13"></a><var>16.13</var>section have the meanings defined in section 62Q.01, except that "health plan" includes <br/>
<a id="pl.16.14"></a><var>16.14</var>individual and group coverage for employer plans with up to 75 participants.<br/>
<a id="pl.16.15"></a><var>16.15</var>    Subd. 2. <b>Flexible benefits plan.</b> Notwithstanding any provision of this chapter, <br/>
<a id="pl.16.16"></a><var>16.16</var>chapter 363A, or any other law to the contrary, a health plan company may offer, sell, <br/>
<a id="pl.16.17"></a><var>16.17</var>issue, and renew a health plan that is a flexible benefits plan under this section if the <br/>
<a id="pl.16.18"></a><var>16.18</var>following requirements are satisfied:<br/>
<a id="pl.16.19"></a><var>16.19</var>(1) the health plan must be offered in compliance with the laws of this state, except <br/>
<a id="pl.16.20"></a><var>16.20</var>as otherwise permitted in this section;<br/>
<a id="pl.16.21"></a><var>16.21</var>(2) the health plan must be designed to enable covered persons to better manage <br/>
<a id="pl.16.22"></a><var>16.22</var>costs and coverage options through the use of co-pays, deductibles, and other cost-sharing <br/>
<a id="pl.16.23"></a><var>16.23</var>arrangements;<br/>
<a id="pl.16.24"></a><var>16.24</var>(3) the health plan may modify or exclude any or all coverages of benefits that <br/>
<a id="pl.16.25"></a><var>16.25</var>would otherwise be required by law, except for maternity benefits and other benefits <br/>
<a id="pl.16.26"></a><var>16.26</var>required under federal law;<br/>
<a id="pl.16.27"></a><var>16.27</var>(4) each health plan and plan's premiums must be approved by the commissioner <br/>
<a id="pl.16.28"></a><var>16.28</var>of health or commerce, whichever is appropriate under section 62Q.01, subdivision 2, <br/>
<a id="pl.16.29"></a><var>16.29</var>but neither commissioner may disapprove a plan on the grounds of a modification or <br/>
<a id="pl.16.30"></a><var>16.30</var>exclusion permitted under clause (3); and<br/>
<a id="pl.16.31"></a><var>16.31</var>(5) prior to the sale of the health plan, the purchaser must be given a written list of <br/>
<a id="pl.16.32"></a><var>16.32</var>the coverages otherwise required by law that are modified or excluded in the health plan. <br/>
<a id="pl.16.33"></a><var>16.33</var>The list must include a description of each coverage in the list and indicate whether the <br/>
<a id="pl.16.34"></a><var>16.34</var>coverage is modified or excluded. If coverage is modified, the list must describe the <br/>
<a id="pl.16.35"></a><var>16.35</var>modification. The list may, but is not required to, also list any or all coverages otherwise <br/>
<a id="pl.17.1"></a><var>17.1</var>required by law that are included in the health plan and indicate that they are included. <br/>
<a id="pl.17.2"></a><var>17.2</var>The health plan company must require that a copy of this written list be provided, prior <br/>
<a id="pl.17.3"></a><var>17.3</var>to the effective date of the health plan, to each enrollee or employee who is eligible for <br/>
<a id="pl.17.4"></a><var>17.4</var>health coverage under the plan.<br/>
<a id="pl.17.5"></a><var>17.5</var>    Subd. 3. <b>Employer health plan.</b> An employer may provide a health plan permitted <br/>
<a id="pl.17.6"></a><var>17.6</var>under this section to its employees, the employees' dependents, and other persons eligible <br/>
<a id="pl.17.7"></a><var>17.7</var>for coverage under the employer's plan, notwithstanding chapter 363A or any other law <br/>
<a id="pl.17.8"></a><var>17.8</var>to the contrary.<br/>
<a id="pl.17.9"></a><var>17.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2012.<br/>
<br/>
<a id="bill.0.25.0"></a><a id="pl.17.10"></a><var>17.10</var>    Sec. 25. Minnesota Statutes 2008, section 62S.24, subdivision 8, is amended to read:<br/>
<a id="pl.17.11"></a><var>17.11</var>    Subd. 8. <b>Exchange for long-term care partnership policy; addition of policy </b><br/>
<a id="pl.17.12"></a><var>17.12</var><b>rider.</b> (a) If authorized by federal law  or a federal waiver is granted With respect to the <br/>
<a id="pl.17.13"></a><var>17.13</var>long-term care partnership program referenced in section 
         <statute_ref>256B.0571</statute_ref>, issuers of long-term <br/>
<a id="pl.17.14"></a><var>17.14</var>care policies may voluntarily exchange a current long-term care insurance policy for a <br/>
<a id="pl.17.15"></a><var>17.15</var>long-term care partnership policy that meets the requirements of Public Law 109-171, <br/>
<a id="pl.17.16"></a><var>17.16</var>section 6021, after the effective date of the state plan amendment implementing the <br/>
<a id="pl.17.17"></a><var>17.17</var>partnership program in this state. The exchange may be in the form of: (1) an amendment <br/>
<a id="pl.17.18"></a><var>17.18</var>or rider; or (2) a disclosure statement indicating that the coverage is now partnership <br/>
<a id="pl.17.19"></a><var>17.19</var>qualified.<br/>
<a id="pl.17.20"></a><var>17.20</var>(b) If authorized by federal law  or a federal waiver is granted With respect to the <br/>
<a id="pl.17.21"></a><var>17.21</var>long-term care partnership program referenced in section 
         <statute_ref>256B.0571</statute_ref>, allowing to allow an <br/>
<a id="pl.17.22"></a><var>17.22</var>existing long-term care insurance policy to qualify as a partnership policy by addition of a <br/>
<a id="pl.17.23"></a><var>17.23</var>policy rider or amendment or disclosure statement, the issuer of the policy is authorized to <br/>
<a id="pl.17.24"></a><var>17.24</var>add the rider or amendment or disclosure statement to the policy after the effective date of <br/>
<a id="pl.17.25"></a><var>17.25</var>the state plan amendment implementing the partnership program in this state.<br/>
<a id="pl.17.26"></a><var>17.26</var>(c) The commissioner, in cooperation with the commissioner of human services, <br/>
<a id="pl.17.27"></a><var>17.27</var>shall pursue any federal law changes or waivers necessary to allow the implementation <br/>
<a id="pl.17.28"></a><var>17.28</var>of paragraphs (a) and (b).<br/>
<br/>
<a id="bill.0.26.0"></a><a id="pl.17.29"></a><var>17.29</var>    Sec. 26. Minnesota Statutes 2008, section 62S.266, subdivision 4, is amended to read:<br/>
<a id="pl.17.30"></a><var>17.30</var>    Subd. 4. <b>Contingent benefit upon lapse.</b> (a) After rejection of the offer required <br/>
<a id="pl.17.31"></a><var>17.31</var>under subdivision 2, for individual and group policies without nonforfeiture benefits <br/>
<a id="pl.17.32"></a><var>17.32</var>issued after July 1, 2001, the insurer shall provide a contingent benefit upon lapse.<br/>
<a id="pl.18.1"></a><var>18.1</var>    (b) If a group policyholder elects to make the nonforfeiture benefit an option to <br/>
<a id="pl.18.2"></a><var>18.2</var>the certificate holder, a certificate shall provide either the nonforfeiture benefit or the <br/>
<a id="pl.18.3"></a><var>18.3</var>contingent benefit upon lapse.<br/>
<a id="pl.18.4"></a><var>18.4</var>    (c) The contingent benefit on lapse must be triggered every time an insurer increases <br/>
<a id="pl.18.5"></a><var>18.5</var>the premium rates to a level which results in a cumulative increase of the annual premium <br/>
<a id="pl.18.6"></a><var>18.6</var>equal to or exceeding the percentage of the insured's initial annual premium based on <br/>
<a id="pl.18.7"></a><var>18.7</var>the insured's issue age provided in this paragraph, and the policy or certificate lapses <br/>
<a id="pl.18.8"></a><var>18.8</var>within 120 days of the due date of the premium increase. Unless otherwise required, <br/>
<a id="pl.18.9"></a><var>18.9</var>policyholders shall be notified at least 30 days prior to the due date of the premium <br/>
<a id="pl.18.10"></a><var>18.10</var>reflecting the rate increase.<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="12.5"/>
<col width="20"/>
<col width="7.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.18.11"></a><var>18.11</var><br/>
</td>
<td align="center" colspan="5">Triggers for a Substantial Premium Increase<br/>
</td>
</tr>
<tr>
<td><a id="pl.18.12"></a><var>18.12</var><br/>
<a id="pl.18.13"></a><var>18.13</var><br/>
</td>
<td></td>
<td align="left">Issue Age<br/>
</td>
<td align="right"></td>
<td align="center" colspan="2">Percent Increase Over<br/>
                  		Initial Premium<br/>
</td>
</tr>
<tr>
<td><a id="pl.18.14"></a><var>18.14</var><br/>
</td>
<td></td>
<td>29 and Under<br/>
</td>
<td></td>
<td align="right">200<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.15"></a><var>18.15</var><br/>
</td>
<td></td>
<td>30-34<br/>
</td>
<td align="left"></td>
<td align="right">190<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.16"></a><var>18.16</var><br/>
</td>
<td></td>
<td align="left">35-39<br/>
</td>
<td></td>
<td align="right">170<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.17"></a><var>18.17</var><br/>
</td>
<td></td>
<td align="left">40-44<br/>
</td>
<td></td>
<td align="right">150<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.18"></a><var>18.18</var><br/>
</td>
<td></td>
<td align="left">45-49<br/>
</td>
<td></td>
<td align="right">130<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.19"></a><var>18.19</var><br/>
</td>
<td></td>
<td>50-54<br/>
</td>
<td></td>
<td align="right">110<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.20"></a><var>18.20</var><br/>
</td>
<td></td>
<td>55-59<br/>
</td>
<td></td>
<td align="right">90<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.21"></a><var>18.21</var><br/>
</td>
<td></td>
<td>60<br/>
</td>
<td></td>
<td align="right">70<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.22"></a><var>18.22</var><br/>
</td>
<td></td>
<td>61<br/>
</td>
<td></td>
<td align="right">66<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.23"></a><var>18.23</var><br/>
</td>
<td></td>
<td>62<br/>
</td>
<td></td>
<td align="right">62<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.24"></a><var>18.24</var><br/>
</td>
<td></td>
<td>63<br/>
</td>
<td></td>
<td align="right">58<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.25"></a><var>18.25</var><br/>
</td>
<td></td>
<td>64<br/>
</td>
<td></td>
<td align="right">54<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.26"></a><var>18.26</var><br/>
</td>
<td></td>
<td>65<br/>
</td>
<td></td>
<td align="right">50<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.27"></a><var>18.27</var><br/>
</td>
<td></td>
<td>66<br/>
</td>
<td></td>
<td align="right">48<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.28"></a><var>18.28</var><br/>
</td>
<td></td>
<td>67<br/>
</td>
<td></td>
<td align="right">46<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.29"></a><var>18.29</var><br/>
</td>
<td></td>
<td>68<br/>
</td>
<td></td>
<td align="right">44<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.30"></a><var>18.30</var><br/>
</td>
<td></td>
<td>69<br/>
</td>
<td></td>
<td align="right">42<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.31"></a><var>18.31</var><br/>
</td>
<td></td>
<td>70<br/>
</td>
<td></td>
<td align="right">40<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.32"></a><var>18.32</var><br/>
</td>
<td></td>
<td>71<br/>
</td>
<td></td>
<td align="right">38<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.33"></a><var>18.33</var><br/>
</td>
<td></td>
<td>72<br/>
</td>
<td></td>
<td align="right">36<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.34"></a><var>18.34</var><br/>
</td>
<td></td>
<td>73<br/>
</td>
<td></td>
<td align="right">34<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.35"></a><var>18.35</var><br/>
</td>
<td></td>
<td>74<br/>
</td>
<td></td>
<td align="right">32<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.36"></a><var>18.36</var><br/>
</td>
<td></td>
<td>75<br/>
</td>
<td></td>
<td align="right">30<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.37"></a><var>18.37</var><br/>
</td>
<td></td>
<td>76<br/>
</td>
<td></td>
<td align="right">28<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.38"></a><var>18.38</var><br/>
</td>
<td></td>
<td>77<br/>
</td>
<td></td>
<td align="right">26<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.39"></a><var>18.39</var><br/>
</td>
<td></td>
<td>78<br/>
</td>
<td></td>
<td align="right">24<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.40"></a><var>18.40</var><br/>
</td>
<td></td>
<td>79<br/>
</td>
<td></td>
<td align="right">22<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.41"></a><var>18.41</var><br/>
</td>
<td></td>
<td>80<br/>
</td>
<td></td>
<td align="right">20<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.18.42"></a><var>18.42</var><br/>
</td>
<td></td>
<td>81<br/>
</td>
<td></td>
<td align="right">19<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.1"></a><var>19.1</var><br/>
</td>
<td></td>
<td>82<br/>
</td>
<td></td>
<td align="right">18<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.2"></a><var>19.2</var><br/>
</td>
<td></td>
<td>83<br/>
</td>
<td></td>
<td align="right">17<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.3"></a><var>19.3</var><br/>
</td>
<td></td>
<td>84<br/>
</td>
<td></td>
<td align="right">16<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.4"></a><var>19.4</var><br/>
</td>
<td></td>
<td>85<br/>
</td>
<td></td>
<td align="right">15<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.5"></a><var>19.5</var><br/>
</td>
<td></td>
<td>86<br/>
</td>
<td></td>
<td align="right">14<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.6"></a><var>19.6</var><br/>
</td>
<td></td>
<td>87<br/>
</td>
<td></td>
<td align="right">13<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.7"></a><var>19.7</var><br/>
</td>
<td></td>
<td>88<br/>
</td>
<td></td>
<td align="right">12<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.8"></a><var>19.8</var><br/>
</td>
<td></td>
<td>89<br/>
</td>
<td></td>
<td align="right">11<br/>
</td>
<td align="right"></td>
</tr>
<tr>
<td><a id="pl.19.9"></a><var>19.9</var><br/>
</td>
<td></td>
<td>90 and over<br/>
</td>
<td align="left"></td>
<td align="right">10<br/>
</td>
<td align="right"></td>
</tr>
</table><a id="pl.19.10"></a><var>19.10</var>    (d) A contingent benefit on lapse must also be triggered for policies with a fixed <br/>
<a id="pl.19.11"></a><var>19.11</var>or limited premium paying period every time an insurer increases the premium rates to a <br/>
<a id="pl.19.12"></a><var>19.12</var>level that results in a cumulative increase of the annual premium equal to or exceeding the <br/>
<a id="pl.19.13"></a><var>19.13</var>percentage of the insured's initial annual premium set forth below based on the insured's <br/>
<a id="pl.19.14"></a><var>19.14</var>issue age, the policy or certificate lapses within 120 days of the due date of the premium <br/>
<a id="pl.19.15"></a><var>19.15</var>so increased, and the ratio in paragraph (e) (f), clause (2), is 40 percent or more. Unless <br/>
<a id="pl.19.16"></a><var>19.16</var>otherwise required, policyholders shall be notified at least 30 days prior to the due date of <br/>
<a id="pl.19.17"></a><var>19.17</var>the premium reflecting the rate increase.<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.19.18"></a><var>19.18</var><br/>
</td>
<td align="center" colspan="2">Triggers for a Substantial Premium Increase<br/>
</td>
</tr>
<tr>
<td><a id="pl.19.19"></a><var>19.19</var><br/>
</td>
<td align="center">Issue Age<br/>
</td>
<td align="center">Percent Increase Over Initial Premium<br/>
</td>
</tr>
<tr>
<td><a id="pl.19.20"></a><var>19.20</var><br/>
</td>
<td align="center">Under 65<br/>
</td>
<td align="center">50%<br/>
</td>
</tr>
<tr>
<td><a id="pl.19.21"></a><var>19.21</var><br/>
</td>
<td align="center">65-80<br/>
</td>
<td align="center">30%<br/>
</td>
</tr>
<tr>
<td><a id="pl.19.22"></a><var>19.22</var><br/>
</td>
<td align="center">Over 80<br/>
</td>
<td align="center">10%<br/>
</td>
</tr>
</table><a id="pl.19.23"></a><var>19.23</var>    This provision shall be in addition to the contingent benefit provided by paragraph <br/>
<a id="pl.19.24"></a><var>19.24</var>(c) and where both are triggered, the benefit provided must be at the option of the insured.<br/>
<a id="pl.19.25"></a><var>19.25</var>    (e) On or before the effective date of a substantial premium increase as defined in <br/>
<a id="pl.19.26"></a><var>19.26</var>paragraph (c), the insurer shall:<br/>
<a id="pl.19.27"></a><var>19.27</var>    (1) offer to reduce policy benefits provided by the current coverage without the <br/>
<a id="pl.19.28"></a><var>19.28</var>requirement of additional underwriting so that required premium payments are not <br/>
<a id="pl.19.29"></a><var>19.29</var>increased;<br/>
<a id="pl.19.30"></a><var>19.30</var>    (2) offer to convert the coverage to a paid-up status with a shortened benefit period <br/>
<a id="pl.19.31"></a><var>19.31</var>according to the terms of subdivision 5. This option may be elected at any time during the <br/>
<a id="pl.19.32"></a><var>19.32</var>120-day period referenced in paragraph (c); and<br/>
<a id="pl.19.33"></a><var>19.33</var>    (3) notify the policyholder or certificate holder that a default or lapse at any time <br/>
<a id="pl.19.34"></a><var>19.34</var>during the 120-day period referenced in paragraph (c) is deemed to be the election of <br/>
<a id="pl.19.35"></a><var>19.35</var>the offer to convert in clause (2).<br/>
<a id="pl.19.36"></a><var>19.36</var>    (f) On or before the effective date of a substantial premium increase as defined in <br/>
<a id="pl.19.37"></a><var>19.37</var>paragraph (d), the insurer shall:<br/>
<a id="pl.20.1"></a><var>20.1</var>    (1) offer to reduce policy benefits provided by the current coverage without the <br/>
<a id="pl.20.2"></a><var>20.2</var>requirement of additional underwriting so that required premium payments are not <br/>
<a id="pl.20.3"></a><var>20.3</var>increased;<br/>
<a id="pl.20.4"></a><var>20.4</var>    (2) offer to convert the coverage to a paid-up status where the amount payable for <br/>
<a id="pl.20.5"></a><var>20.5</var>each benefit is 90 percent of the amount payable in effect immediately prior to lapse times <br/>
<a id="pl.20.6"></a><var>20.6</var>the ratio of the number of completed months of paid premiums divided by the number of <br/>
<a id="pl.20.7"></a><var>20.7</var>months in the premium paying period. This option may be elected at any time during the <br/>
<a id="pl.20.8"></a><var>20.8</var>120-day period referenced in paragraph (d); and<br/>
<a id="pl.20.9"></a><var>20.9</var>    (3) notify the policyholder or certificate holder that a default or lapse at any time <br/>
<a id="pl.20.10"></a><var>20.10</var>during the 120-day period referenced in paragraph (d) shall be deemed to be the election <br/>
<a id="pl.20.11"></a><var>20.11</var>of the offer to convert in clause (2) if the ratio is 40 percent or more.<br/>
<br/>
<a id="bill.0.27.0"></a><a id="pl.20.12"></a><var>20.12</var>    Sec. 27. Minnesota Statutes 2008, section 62S.29, subdivision 1, is amended to read:<br/>
<a id="pl.20.13"></a><var>20.13</var>    Subdivision 1. <b>Requirements.</b> An insurer or other entity marketing long-term care <br/>
<a id="pl.20.14"></a><var>20.14</var>insurance coverage in this state, directly or through its producers, shall:<br/>
<a id="pl.20.15"></a><var>20.15</var>(1) establish marketing procedures and agent training requirements to assure that <br/>
<a id="pl.20.16"></a><var>20.16</var>any marketing activities, including any comparison of policies by its agents or other <br/>
<a id="pl.20.17"></a><var>20.17</var>producers, are fair and accurate;<br/>
<a id="pl.20.18"></a><var>20.18</var>(2) establish marketing procedures to assure excessive insurance is not sold or issued;<br/>
<a id="pl.20.19"></a><var>20.19</var>(3) display prominently by type, stamp, or other appropriate means, on the first page <br/>
<a id="pl.20.20"></a><var>20.20</var>of the outline of coverage and policy, the following:<br/>
<a id="pl.20.21"></a><var>20.21</var>"Notice to buyer: This policy may not cover all of the costs associated with <br/>
<a id="pl.20.22"></a><var>20.22</var>long-term care incurred by the buyer during the period of coverage. The buyer is advised <br/>
<a id="pl.20.23"></a><var>20.23</var>to review carefully all policy limitations.";<br/>
<a id="pl.20.24"></a><var>20.24</var>(4) provide copies of the disclosure forms required in section 
         <statute_ref>62S.081</statute_ref>, subdivision <br/>
<a id="pl.20.25"></a><var>20.25</var>4, to the applicant;<br/>
<a id="pl.20.26"></a><var>20.26</var>(5) inquire and otherwise make every reasonable effort to identify whether a <br/>
<a id="pl.20.27"></a><var>20.27</var>prospective applicant or enrollee for long-term care insurance already has long-term care <br/>
<a id="pl.20.28"></a><var>20.28</var>insurance and the types and amounts of the insurance;<br/>
<a id="pl.20.29"></a><var>20.29</var>(6) establish auditable procedures for verifying compliance with this subdivision; <br/>
<a id="pl.20.30"></a><var>20.30</var>(7) if applicable, provide written notice to the prospective policyholder and <br/>
<a id="pl.20.31"></a><var>20.31</var>certificate holder, at solicitation, that a senior insurance counseling program approved by <br/>
<a id="pl.20.32"></a><var>20.32</var>the commissioner, the Senior LinkAge Line, is available and the name, address, and <br/>
<a id="pl.20.33"></a><var>20.33</var>telephone number of the program;<br/>
<a id="pl.20.34"></a><var>20.34</var>(8) use the terms "noncancelable" or "level premium" only when the policy or <br/>
<a id="pl.20.35"></a><var>20.35</var>certificate conforms to section 
         <statute_ref>62S.14</statute_ref>; and<br/>
<a id="pl.21.1"></a><var>21.1</var>(9) provide an explanation of contingent benefit upon lapse provided for in section <br/>
<statute_ref><a id="pl.21.2"></a><var>21.2</var>62S.266
         </statute_ref>.<br/>
<br/>
<a id="bill.0.28.0"></a><a id="pl.21.3"></a><var>21.3</var>    Sec. 28. Minnesota Statutes 2009 Supplement, section 65A.29, subdivision 13, is <br/>
<a id="pl.21.4"></a><var>21.4</var>amended to read:<br/>
<a id="pl.21.5"></a><var>21.5</var>    Subd. 13. <b>Notice of possible cancellation.</b> (a) A written notice must be provided <br/>
<a id="pl.21.6"></a><var>21.6</var>to all applicants for homeowners' insurance, at the time the application is submitted, <br/>
<a id="pl.21.7"></a><var>21.7</var>containing the following language in bold print: "THE INSURER MAY ELECT <br/>
<a id="pl.21.8"></a><var>21.8</var>TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 60 59 DAYS <br/>
<a id="pl.21.9"></a><var>21.9</var>FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS <br/>
<a id="pl.21.10"></a><var>21.10</var>NOT SPECIFICALLY PROHIBITED BY STATUTE."<br/>
<a id="pl.21.11"></a><var>21.11</var>(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent <br/>
<a id="pl.21.12"></a><var>21.12</var>may advise the applicant orally or in writing of its availability for review on the insurer's <br/>
<a id="pl.21.13"></a><var>21.13</var>Web site in lieu of providing a written notice, if the insurer advises the applicant of the <br/>
<a id="pl.21.14"></a><var>21.14</var>availability of a written notice upon the applicant's request. The insurer shall provide the <br/>
<a id="pl.21.15"></a><var>21.15</var>notice in writing if requested by the applicant. An oral notice shall be presumed delivered <br/>
<a id="pl.21.16"></a><var>21.16</var>if the agent or insurer makes a contemporaneous notation in the applicant's record of <br/>
<a id="pl.21.17"></a><var>21.17</var>the notice having been delivered or if the insurer or agent retains an audio recording of <br/>
<a id="pl.21.18"></a><var>21.18</var>the notification provided to the applicant.<br/>
<br/>
<a id="bill.0.29.0"></a><a id="pl.21.19"></a><var>21.19</var>    Sec. 29. Minnesota Statutes 2008, section 72A.08, subdivision 4, is amended to read:<br/>
<a id="pl.21.20"></a><var>21.20</var>    Subd. 4. <b>Exceptions.</b> (a) The provisions of this section shall not apply to any policy <br/>
<a id="pl.21.21"></a><var>21.21</var>procured by officers, agents, subagents, employees, intermediaries, or representatives <br/>
<a id="pl.21.22"></a><var>21.22</var>wholly and solely upon property of which they are, respectively, the owner at the time of <br/>
<a id="pl.21.23"></a><var>21.23</var>procuring the policy, where the officers, agents, subagents, employees, intermediaries, or <br/>
<a id="pl.21.24"></a><var>21.24</var>representatives are, and have been for more than six months prior to the issuing of the <br/>
<a id="pl.21.25"></a><var>21.25</var>policy, regularly employed by, or connected with, the company or association issuing the <br/>
<a id="pl.21.26"></a><var>21.26</var>policy; and any life insurance company doing business in this state may issue industrial <br/>
<a id="pl.21.27"></a><var>21.27</var>policies of life or endowment insurance, with or without annuities, with special rates of <br/>
<a id="pl.21.28"></a><var>21.28</var>premiums less than the usual rates of premiums for these policies, to members of labor <br/>
<a id="pl.21.29"></a><var>21.29</var>organizations, credit unions, lodges, beneficial societies, or similar organizations, or <br/>
<a id="pl.21.30"></a><var>21.30</var>employees of one employer, who, through their secretary or employer, may take out <br/>
<a id="pl.21.31"></a><var>21.31</var>insurance in an aggregate of not less than 50 members and pay their premiums through <br/>
<a id="pl.21.32"></a><var>21.32</var>the secretary or employer.<br/>
<a id="pl.22.1"></a><var>22.1</var>(b) A promotional advertising item of $25 or less or a gift of $25 or less per year <br/>
<a id="pl.22.2"></a><var>22.2</var>is not a rebate if the receipt of the item or gift is not conditioned upon purchase of an <br/>
<a id="pl.22.3"></a><var>22.3</var>insurance policy or product.<br/>
<a id="pl.22.4"></a><var>22.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.30.0"></a><a id="pl.22.5"></a><var>22.5</var>    Sec. 30. Minnesota Statutes 2008, section 72A.12, subdivision 4, is amended to read:<br/>
<a id="pl.22.6"></a><var>22.6</var>    Subd. 4. <b>Discrimination; rebates.</b> (a) No life insurance company doing business in <br/>
<a id="pl.22.7"></a><var>22.7</var>this state shall make or permit any distinction or discrimination in favor of individuals <br/>
<a id="pl.22.8"></a><var>22.8</var>between insurants of the same class and equal expectation of life in the amount or <br/>
<a id="pl.22.9"></a><var>22.9</var>payment of premiums or rates charged for policies of life or endowment insurance, <br/>
<a id="pl.22.10"></a><var>22.10</var>or in the dividends or other benefits payable thereon, or in any other of the terms and <br/>
<a id="pl.22.11"></a><var>22.11</var>conditions of the contracts it makes; nor shall any such company or agent thereof make <br/>
<a id="pl.22.12"></a><var>22.12</var>any contract of insurance or agreement as to such contract other than as plainly expressed <br/>
<a id="pl.22.13"></a><var>22.13</var>in the policy issued thereon; nor shall any such company or any officer, agent, solicitor, <br/>
<a id="pl.22.14"></a><var>22.14</var>or representative thereof pay, allow or give, or offer to pay, allow or give, directly or <br/>
<a id="pl.22.15"></a><var>22.15</var>indirectly, as inducement to insurance, any rebate of premium payable on the policy, or <br/>
<a id="pl.22.16"></a><var>22.16</var>any special favor or advantage in the dividends or other benefits to accrue thereon or any <br/>
<a id="pl.22.17"></a><var>22.17</var>paid employment or contract for services of any kind, or any valuable consideration or <br/>
<a id="pl.22.18"></a><var>22.18</var>inducement whatever not specified in the policy contract of insurance.<br/>
<a id="pl.22.19"></a><var>22.19</var>Any violation of the provisions of this subdivision shall be a misdemeanor and <br/>
<a id="pl.22.20"></a><var>22.20</var>punishable as such.<br/>
<a id="pl.22.21"></a><var>22.21</var>(b) A promotional advertising item of $25 or less or a gift of $25 or less per year <br/>
<a id="pl.22.22"></a><var>22.22</var>is not a rebate if the receipt of the item or gift is not conditioned upon purchase of an <br/>
<a id="pl.22.23"></a><var>22.23</var>insurance policy or product.<br/>
<a id="pl.22.24"></a><var>22.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.31.0"></a><a id="pl.22.25"></a><var>22.25</var>    Sec. 31. Minnesota Statutes 2008, section 72A.20, subdivision 10, is amended to read:<br/>
<a id="pl.22.26"></a><var>22.26</var>    Subd. 10. <b>Rebates.</b> (a) Except as otherwise expressly provided by law, knowingly <br/>
<a id="pl.22.27"></a><var>22.27</var>permitting or offering to make or making any contract of life insurance, annuity, or <br/>
<a id="pl.22.28"></a><var>22.28</var>accident and health insurance, or agreement as to such contract, other than as plainly <br/>
<a id="pl.22.29"></a><var>22.29</var>expressed in the contract issued thereon, or paying or allowing or giving, or offering to <br/>
<a id="pl.22.30"></a><var>22.30</var>pay, allow, or give, directly or indirectly, as inducement to such insurance or annuity, any <br/>
<a id="pl.22.31"></a><var>22.31</var>rebate of premiums payable on the contract, or any special favor or advantage in the <br/>
<a id="pl.22.32"></a><var>22.32</var>dividends or other benefits thereon, or any valuable consideration or inducement whatever <br/>
<a id="pl.22.33"></a><var>22.33</var>not specified in the contract; or giving or selling or purchasing, or offering to give, sell, <br/>
<a id="pl.23.1"></a><var>23.1</var>or purchase, as inducement to such insurance or annuity, or in connection therewith, <br/>
<a id="pl.23.2"></a><var>23.2</var>any stocks, bonds, or other securities of any insurance company or other corporation, <br/>
<a id="pl.23.3"></a><var>23.3</var>association, or partnership, or any dividends or profits accrued thereon, or anything <br/>
<a id="pl.23.4"></a><var>23.4</var>of value whatsoever not specified in the contract, shall constitute an unfair method of <br/>
<a id="pl.23.5"></a><var>23.5</var>competition and an unfair and deceptive act or practice.<br/>
<a id="pl.23.6"></a><var>23.6</var>(b) A promotional advertising item of $25 or less or a gift of $25 or less per year <br/>
<a id="pl.23.7"></a><var>23.7</var>is not a rebate if the receipt of the item or gift is not conditioned upon purchase of an <br/>
<a id="pl.23.8"></a><var>23.8</var>insurance policy or product.<br/>
<a id="pl.23.9"></a><var>23.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.32.0"></a><a id="pl.23.10"></a><var>23.10</var>    Sec. 32. Minnesota Statutes 2008, section 72A.20, subdivision 36, is amended to read:<br/>
<a id="pl.23.11"></a><var>23.11</var>    Subd. 36. <b>Limitations on the use of credit information.</b> (a) No insurer or group of <br/>
<a id="pl.23.12"></a><var>23.12</var>affiliated insurers may reject, cancel, or nonrenew a policy of private passenger motor <br/>
<a id="pl.23.13"></a><var>23.13</var>vehicle insurance as defined under section 
         <statute_ref>65B.01</statute_ref> or a policy of homeowner's insurance <br/>
<a id="pl.23.14"></a><var>23.14</var>as defined under section 
         <statute_ref>65A.27</statute_ref>, for any person in whole or in part on the basis of credit <br/>
<a id="pl.23.15"></a><var>23.15</var>information, including a credit reporting product known as a "credit score" or "insurance <br/>
<a id="pl.23.16"></a><var>23.16</var>score," without consideration and inclusion of any other applicable underwriting factor.<br/>
<a id="pl.23.17"></a><var>23.17</var>(b) If credit information, credit scoring, or insurance scoring is to be used in <br/>
<a id="pl.23.18"></a><var>23.18</var>underwriting, the insurer must disclose to the consumer that credit information will be <br/>
<a id="pl.23.19"></a><var>23.19</var>obtained and used as part of the insurance underwriting process.<br/>
<a id="pl.23.20"></a><var>23.20</var>(c) Insurance inquiries and non-consumer-initiated inquiries must not be used as part <br/>
<a id="pl.23.21"></a><var>23.21</var>of the credit scoring or insurance scoring process.<br/>
<a id="pl.23.22"></a><var>23.22</var>(d) If a credit score, insurance score, or other credit information relating to a <br/>
<a id="pl.23.23"></a><var>23.23</var>consumer, with respect to the types of insurance referred to in paragraph (a), is adversely <br/>
<a id="pl.23.24"></a><var>23.24</var>impacted or cannot be generated because of the absence of a credit history, the insurer <br/>
<a id="pl.23.25"></a><var>23.25</var>must exclude the use of credit as a factor in the decision to reject, cancel, or nonrenew.<br/>
<a id="pl.23.26"></a><var>23.26</var>(e) Insurers must upon the request of a policyholder reevaluate the policyholder's <br/>
<a id="pl.23.27"></a><var>23.27</var>score. Any change in premium resulting from the reevaluation must be effective upon <br/>
<a id="pl.23.28"></a><var>23.28</var>the renewal of the policy. An insurer is not required to reevaluate a policyholder's score <br/>
<a id="pl.23.29"></a><var>23.29</var>pursuant to this paragraph more than twice in any given calendar year.<br/>
<a id="pl.23.30"></a><var>23.30</var>(f) Insurers must upon request of the applicant or policyholder provide reasonable <br/>
<a id="pl.23.31"></a><var>23.31</var>underwriting exceptions based upon prior credit histories for persons whose credit <br/>
<a id="pl.23.32"></a><var>23.32</var>information is unduly influenced by expenses related to a catastrophic injury or illness, <br/>
<a id="pl.23.33"></a><var>23.33</var>temporary loss of employment, or the death of an immediate family member. The insurer <br/>
<a id="pl.23.34"></a><var>23.34</var>may require reasonable documentation of these events prior to granting an exception.<br/>
<a id="pl.24.1"></a><var>24.1</var>(g) A credit scoring or insurance scoring methodology must not be used by an <br/>
<a id="pl.24.2"></a><var>24.2</var>insurer if the credit scoring or insurance scoring methodology incorporates the gender, <br/>
<a id="pl.24.3"></a><var>24.3</var>race, nationality, or religion of an insured or applicant.<br/>
<a id="pl.24.4"></a><var>24.4</var>(h) Insurers that employ a credit scoring or insurance scoring system in underwriting <br/>
<a id="pl.24.5"></a><var>24.5</var>of coverage described in paragraph (a) must have on file with the commissioner:<br/>
<a id="pl.24.6"></a><var>24.6</var>(1) the insurer's credit scoring or insurance scoring methodology; and<br/>
<a id="pl.24.7"></a><var>24.7</var>(2) information that supports the insurer's use of a credit score or insurance score as <br/>
<a id="pl.24.8"></a><var>24.8</var>an underwriting criterion.<br/>
<a id="pl.24.9"></a><var>24.9</var>(i) Insurers described in paragraph (g) (h) shall file the required information with the <br/>
<a id="pl.24.10"></a><var>24.10</var>commissioner within 120 days of August 1, 2002, or prior to implementation of a credit <br/>
<a id="pl.24.11"></a><var>24.11</var>scoring or insurance scoring system by the insurer, if that date is later.<br/>
<a id="pl.24.12"></a><var>24.12</var>(j) Information provided by, or on behalf of, an insurer to the commissioner under <br/>
<a id="pl.24.13"></a><var>24.13</var>this subdivision is trade secret information under section 
         <statute_ref>13.37</statute_ref>.<br/>
<br/>
<a id="bill.0.33.0"></a><a id="pl.24.14"></a><var>24.14</var>    Sec. 33. Minnesota Statutes 2008, section 72A.20, subdivision 37, is amended to read:<br/>
<a id="pl.24.15"></a><var>24.15</var>    Subd. 37. <b>Electronic transmission of required information.</b> (a) A health carrier, <br/>
<a id="pl.24.16"></a><var>24.16</var>as defined in section 
         <statute_ref>62A.011, subdivision 2</statute_ref>, is not in violation of this chapter for <br/>
<a id="pl.24.17"></a><var>24.17</var>electronically transmitting or electronically making available information otherwise <br/>
<a id="pl.24.18"></a><var>24.18</var>required to be delivered in writing under chapters 62A to 62Q and 72A to an enrollee as <br/>
<a id="pl.24.19"></a><var>24.19</var>defined in section 
         <statute_ref>62Q.01, subdivision 2a</statute_ref>, or to a health plan as defined in paragraph (b), <br/>
<a id="pl.24.20"></a><var>24.20</var>and with the requirements of those chapters if the following conditions are met: <br/>
<a id="pl.24.21"></a><var>24.21</var>(1) the health carrier informs the group policyholder or the enrollee or both that <br/>
<a id="pl.24.22"></a><var>24.22</var>electronic transmission or access is available and, at the discretion of the health carrier, the <br/>
<a id="pl.24.23"></a><var>24.23</var>enrollee is given one of the following options:<br/>
<a id="pl.24.24"></a><var>24.24</var>(i) electronic transmission or access will occur only if the group policyholder or the <br/>
<a id="pl.24.25"></a><var>24.25</var>enrollee or both affirmatively requests to the health carrier that the required information <br/>
<a id="pl.24.26"></a><var>24.26</var>be electronically transmitted or available and a record of that request is retained by the <br/>
<a id="pl.24.27"></a><var>24.27</var>health carrier; or<br/>
<a id="pl.24.28"></a><var>24.28</var>(ii) electronic transmission or access will automatically occur if the group <br/>
<a id="pl.24.29"></a><var>24.29</var>policyholder or the enrollee or both has not opted out of that manner of transmission by <br/>
<a id="pl.24.30"></a><var>24.30</var>request to the health carrier and requested that the information be provided in writing. If <br/>
<a id="pl.24.31"></a><var>24.31</var>the group policyholder or the enrollee or both opts out of electronic transmission, a record <br/>
<a id="pl.24.32"></a><var>24.32</var>of that request must be retained by the health carrier;<br/>
<a id="pl.24.33"></a><var>24.33</var>(2) the group policyholder or the enrollee or both is allowed to withdraw the request <br/>
<a id="pl.24.34"></a><var>24.34</var>at any time;<br/>
<a id="pl.25.1"></a><var>25.1</var>(3) if the information transmitted electronically contains individually identifiable <br/>
<a id="pl.25.2"></a><var>25.2</var>data, it must be transmitted to a secured mailbox. If the information made available <br/>
<a id="pl.25.3"></a><var>25.3</var>electronically contains individually identifiable data, it must be made available at a <br/>
<a id="pl.25.4"></a><var>25.4</var>password-protected secured Web site;<br/>
<a id="pl.25.5"></a><var>25.5</var>(4) the group policyholder or the enrollee or both is provided a customer service <br/>
<a id="pl.25.6"></a><var>25.6</var>number on the enrollee's member card that may be called to request a written copy of <br/>
<a id="pl.25.7"></a><var>25.7</var>the document; and<br/>
<a id="pl.25.8"></a><var>25.8</var>(5) the electronic transmission or electronic availability meets all other requirements <br/>
<a id="pl.25.9"></a><var>25.9</var>of this chapter including, but not limited to, size of the typeface and any required time <br/>
<a id="pl.25.10"></a><var>25.10</var>frames for distribution.<br/>
<a id="pl.25.11"></a><var>25.11</var>(b) For the purpose of this section, "health plan" means a health plan as defined <br/>
<a id="pl.25.12"></a><var>25.12</var>in section 
<statute_ref>62A.011</statute_ref> or a policy of accident and sickness insurance as defined in section <br/>
<a id="pl.25.13"></a><var>25.13</var><statute_ref>62A.01</statute_ref>.<br/>
<br/>
<a id="bill.0.34.0"></a><a id="pl.25.14"></a><var>25.14</var>    Sec. 34. Minnesota Statutes 2008, section 72A.492, subdivision 2, is amended to read:<br/>
<a id="pl.25.15"></a><var>25.15</var>    Subd. 2. <b>Covered persons.</b> The rights granted by sections 
         <statute_ref>72A.49</statute_ref> to 
         <statute_ref>72A.505</statute_ref> <br/>
<a id="pl.25.16"></a><var>25.16</var>extend to:<br/>
<a id="pl.25.17"></a><var>25.17</var>(1) a person who is a resident of this state and is the subject of information collected, <br/>
<a id="pl.25.18"></a><var>25.18</var>received, or maintained in connection with an insurance transaction; and<br/>
<a id="pl.25.19"></a><var>25.19</var>(2) a person who is a resident of this state and engages in or seeks to engage in <br/>
<a id="pl.25.20"></a><var>25.20</var>an insurance transaction.<br/>
<br/>
<a id="bill.0.35.0"></a><a id="pl.25.21"></a><var>25.21</var>    Sec. 35. Minnesota Statutes 2008, section 72A.51, subdivision 2, is amended to read:<br/>
<a id="pl.25.22"></a><var>25.22</var>    Subd. 2. <b>Return of policy or contract; notice.</b> Any individual person may cancel <br/>
<a id="pl.25.23"></a><var>25.23</var>an individual policy of insurance against loss or damage by reason of the sickness of the <br/>
<a id="pl.25.24"></a><var>25.24</var>assured or the assured's dependents, a nonprofit health service plan contract providing <br/>
<a id="pl.25.25"></a><var>25.25</var>benefits for hospital, surgical and medical care, a health maintenance organization <br/>
<a id="pl.25.26"></a><var>25.26</var>subscriber contract, or a policy of insurance authorized by section 
         <statute_ref>60A.06, subdivision 1</statute_ref>, <br/>
<a id="pl.25.27"></a><var>25.27</var>clause (4), except Medicare-related coverage as defined in section 62A.3099, subdivision <br/>
<a id="pl.25.28"></a><var>25.28</var>17, and long-term care insurance as defined in section 62S.01, subdivision 18, by <br/>
<a id="pl.25.29"></a><var>25.29</var>returning the policy or contract and by giving written notice of cancellation any time <br/>
<a id="pl.25.30"></a><var>25.30</var>before midnight of the tenth day following the date of purchase. Notice of cancellation <br/>
<a id="pl.25.31"></a><var>25.31</var>may be given personally or by mail. The policy or contract may be returned personally or <br/>
<a id="pl.25.32"></a><var>25.32</var>by mail. If by mail, the notice or return of the policy or contract is effective upon being <br/>
<a id="pl.25.33"></a><var>25.33</var>postmarked, properly addressed and postage prepaid.<br/>
<a id="pl.25.34"></a><var>25.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.36.0"></a><a id="pl.26.1"></a><var>26.1</var>    Sec. 36. Minnesota Statutes 2008, section 72B.01, is amended to read:<br/>
<a id="pl.26.2"></a><var>26.2</var><b>72B.01 PURPOSE AND SCOPE.</b><br/>
<a id="pl.26.3"></a><var>26.3</var>It is the purpose of sections 
         <statute_ref>72B.01</statute_ref> to 
         <statute_ref>72B.14</statute_ref> to provide high quality service to <br/>
<a id="pl.26.4"></a><var>26.4</var>insureds and insurance claimants in the state of Minnesota by providing for well trained <br/>
<a id="pl.26.5"></a><var>26.5</var>adjusters and persons engaged in soliciting business for adjusters, who are qualified to deal <br/>
<a id="pl.26.6"></a><var>26.6</var>with the public in the interest of a fair resolution of insurance claims. Sections 
<statute_ref>72B.01</statute_ref> to <br/>
<a id="pl.26.7"></a><var>26.7</var><statute_ref>72B.14</statute_ref> shall apply to all adjusters, and adjusters' solicitors, except as specifically stated to <br/>
<a id="pl.26.8"></a><var>26.8</var>the contrary; but nothing in sections 
<statute_ref>72B.01</statute_ref> to 
<statute_ref>72B.14</statute_ref> shall apply to:<br/>
<a id="pl.26.9"></a><var>26.9</var>(a) An attorney at law who is licensed or otherwise allowed to practice law in this <br/>
<a id="pl.26.10"></a><var>26.10</var>state and who does not hold out to be an adjuster, or adjuster's solicitor.<br/>
<a id="pl.26.11"></a><var>26.11</var>(b) A licensed agent of an authorized insurer who adjusts losses for such insurer <br/>
<a id="pl.26.12"></a><var>26.12</var>solely under policies issued by the agent or the agent's agency or on which the agent is the <br/>
<a id="pl.26.13"></a><var>26.13</var>agent of record, provided the agent receives no extra compensation for such services.<br/>
<a id="pl.26.14"></a><var>26.14</var>(c) Personnel of township mutual companies.<br/>
<a id="pl.26.15"></a><var>26.15</var>(d) Adjusters for crop hail and farm windstorm damage claims who are on the staff <br/>
<a id="pl.26.16"></a><var>26.16</var>of companies covering such risks.<br/>
<a id="pl.26.17"></a><var>26.17</var>(e) Persons who process life insurance annuity contract or accident and health <br/>
<a id="pl.26.18"></a><var>26.18</var>insurance claims.<br/>
<a id="pl.26.19"></a><var>26.19</var>(f) Persons processing or adjusting wet marine or inland transportation claims or <br/>
<a id="pl.26.20"></a><var>26.20</var>losses.<br/>
<br/>
<a id="bill.0.37.0"></a><a id="pl.26.21"></a><var>26.21</var>    Sec. 37. Minnesota Statutes 2009 Supplement, section 72B.03, subdivision 2, is <br/>
<a id="pl.26.22"></a><var>26.22</var>amended to read:<br/>
<a id="pl.26.23"></a><var>26.23</var>    Subd. 2. <b>Classes of licenses.</b> (a) Unless denied licensure pursuant to section 
         <statute_ref>72B.08</statute_ref>, <br/>
<a id="pl.26.24"></a><var>26.24</var>persons who have met the requirements of section 
         <statute_ref>72B.04</statute_ref> 72B.041 must be issued an <br/>
<a id="pl.26.25"></a><var>26.25</var>adjuster license. There shall be four classes of licenses, as follows:<br/>
<a id="pl.26.26"></a><var>26.26</var>(1) independent adjuster's license;<br/>
<a id="pl.26.27"></a><var>26.27</var>(2) public adjuster's license;<br/>
<a id="pl.26.28"></a><var>26.28</var>(3) public adjuster solicitor's license; and<br/>
<a id="pl.26.29"></a><var>26.29</var>(4) crop hail adjuster's license.<br/>
<a id="pl.26.30"></a><var>26.30</var>(b) An independent adjuster and a public adjuster may qualify for a license in one or <br/>
<a id="pl.26.31"></a><var>26.31</var>more of the following lines of authority:<br/>
<a id="pl.26.32"></a><var>26.32</var>(1) property and casualty; or<br/>
<a id="pl.26.33"></a><var>26.33</var>(2) workers' compensation; or<br/>
<a id="pl.26.34"></a><var>26.34</var>(3) crop.<br/>
<a id="pl.27.1"></a><var>27.1</var>(c) Any person holding a license pursuant to this section is not required to hold any <br/>
<a id="pl.27.2"></a><var>27.2</var>other independent adjuster, public adjuster, insurance, or self-insurance administrator <br/>
<a id="pl.27.3"></a><var>27.3</var>license in this state pursuant to section 
         <statute_ref>60A.23, subdivision 8</statute_ref>, or any other provision, <br/>
<a id="pl.27.4"></a><var>27.4</var>provided that the person does not act as an adjuster with respect to life, health, or annuity <br/>
<a id="pl.27.5"></a><var>27.5</var>insurance, other than disability insurance.<br/>
<a id="pl.27.6"></a><var>27.6</var>(d) An adjuster license remains in effect unless probated, suspended, revoked, or <br/>
<a id="pl.27.7"></a><var>27.7</var>refused as long as the fee set forth in section 
         <statute_ref>72B.04, subdivision 10</statute_ref> 72B.041, subdivision <br/>
<a id="pl.27.8"></a><var>27.8</var>9, is paid and all other requirements for license renewal are met by the due date, otherwise, <br/>
<a id="pl.27.9"></a><var>27.9</var>the license expires.<br/>
<a id="pl.27.10"></a><var>27.10</var>(e) An adjuster whose license expires may, within 12 months of the renewal date, <br/>
<a id="pl.27.11"></a><var>27.11</var>be reissued an adjuster license upon receipt of the renewal request, as prescribed by the <br/>
<a id="pl.27.12"></a><var>27.12</var>commissioner; however, a penalty in the amount of double the unpaid renewal fee is <br/>
<a id="pl.27.13"></a><var>27.13</var>required to reissue the expired license.<br/>
<a id="pl.27.14"></a><var>27.14</var>(f) An adjuster who is unable to comply with license renewal procedures and <br/>
<a id="pl.27.15"></a><var>27.15</var>requirements due to military service, long-term medical disability, or some other <br/>
<a id="pl.27.16"></a><var>27.16</var>extenuating circumstance may request a waiver of same and a waiver of any examination <br/>
<a id="pl.27.17"></a><var>27.17</var>requirement, fine, or other sanction imposed for failure to comply with renewal procedures.<br/>
<a id="pl.27.18"></a><var>27.18</var>(g) An adjuster is subject to sections 
         <statute_ref>72A.17</statute_ref> to 
         <statute_ref>72A.32</statute_ref>.<br/>
<a id="pl.27.19"></a><var>27.19</var>(h) The adjuster must inform the commissioner by any means acceptable of any <br/>
<a id="pl.27.20"></a><var>27.20</var>change in resident or business addresses for the home state or in legal name within 30 <br/>
<a id="pl.27.21"></a><var>27.21</var>days of the change.<br/>
<a id="pl.27.22"></a><var>27.22</var>(i) The license must contain the licensee's name, address, and personal identification <br/>
<a id="pl.27.23"></a><var>27.23</var>number; the dates of issuance and expiration; and any other information the commissioner <br/>
<a id="pl.27.24"></a><var>27.24</var>deems necessary.<br/>
<a id="pl.27.25"></a><var>27.25</var>(j) In order to assist in the performance of the commissioner's duties, the <br/>
<a id="pl.27.26"></a><var>27.26</var>commissioner may contract with nongovernmental entities, including the National <br/>
<a id="pl.27.27"></a><var>27.27</var>Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any <br/>
<a id="pl.27.28"></a><var>27.28</var>ministerial functions related to licensing that the commissioner may deem appropriate, <br/>
<a id="pl.27.29"></a><var>27.29</var>including the collection of fees and data.<br/>
<br/>
<a id="bill.0.38.0"></a><a id="pl.27.30"></a><var>27.30</var>    Sec. 38. Minnesota Statutes 2009 Supplement, section 72B.045, subdivision 1, is <br/>
<a id="pl.27.31"></a><var>27.31</var>amended to read:<br/>
<a id="pl.27.32"></a><var>27.32</var>    Subdivision 1. <b>Requirement.</b> An individual who holds an independent or public <br/>
<a id="pl.27.33"></a><var>27.33</var>adjuster license and who is not exempt under this section must satisfactorily complete <br/>
<a id="pl.27.34"></a><var>27.34</var>a minimum of 24 hours of continuing education courses, of which three hours must <br/>
<a id="pl.28.1"></a><var>28.1</var>be in ethics, reported to the commissioner on a biennial basis in conjunction with the <br/>
<a id="pl.28.2"></a><var>28.2</var>individual's license renewal cycle.<br/>
<br/>
<a id="bill.0.39.0"></a><a id="pl.28.3"></a><var>28.3</var>    Sec. 39. Minnesota Statutes 2009 Supplement, section 72B.06, is amended to read:<br/>
<a id="pl.28.4"></a><var>28.4</var><b>72B.06 CATASTROPHE OR EMERGENCY SITUATIONS.</b><br/>
<a id="pl.28.5"></a><var>28.5</var>(a) In the event of a declared catastrophe or the occurrence of an emergency <br/>
<a id="pl.28.6"></a><var>28.6</var>situation, For purposes of this chapter, a catastrophe exists when, due to a specific, <br/>
<a id="pl.28.7"></a><var>28.7</var>infrequent, and sudden natural or man-made disaster or phenomenon, there have arisen <br/>
<a id="pl.28.8"></a><var>28.8</var>losses to property in Minnesota that are covered by insurance, and the losses are so <br/>
<a id="pl.28.9"></a><var>28.9</var>numerous and severe that resolution of claims related to such covered property losses will <br/>
<a id="pl.28.10"></a><var>28.10</var>not occur expeditiously without the licensing of emergency independent adjusters due to <br/>
<a id="pl.28.11"></a><var>28.11</var>the magnitude of the catastrophic damage. A failure of claims to be resolved expeditiously <br/>
<a id="pl.28.12"></a><var>28.12</var>shall exist upon an insurer's filing with the department a written statement that one of the <br/>
<a id="pl.28.13"></a><var>28.13</var>following conditions exists: (1) the insurer expects to incur at least 500 claims as a result <br/>
<a id="pl.28.14"></a><var>28.14</var>of the event; or (2) the magnitude of the event is expected to generate twice the mean <br/>
<a id="pl.28.15"></a><var>28.15</var>number of claims for one month for the affected area. Such written statement may be <br/>
<a id="pl.28.16"></a><var>28.16</var>sent electronically to the commissioner. An insurer must notify the commissioner via an <br/>
<a id="pl.28.17"></a><var>28.17</var>application for registration of each individual independent adjuster not already licensed in <br/>
<a id="pl.28.18"></a><var>28.18</var>the state where the catastrophe has been declared or an emergency situation has occurred <br/>
<a id="pl.28.19"></a><var>28.19</var>Minnesota, that will act as an emergency independent adjuster on behalf of the insurer <br/>
<a id="pl.28.20"></a><var>28.20</var>pursuant to paragraph (b).<br/>
<a id="pl.28.21"></a><var>28.21</var>(b) A person who is otherwise qualified to adjust claims, but not already licensed in <br/>
<a id="pl.28.22"></a><var>28.22</var>the state where the catastrophe has been declared or an emergency situation has occurred <br/>
<a id="pl.28.23"></a><var>28.23</var>Minnesota, may act as an emergency independent adjuster and adjust claims, if, within <br/>
<a id="pl.28.24"></a><var>28.24</var>five days of deployment to adjust claims arising from the declared catastrophe or the <br/>
<a id="pl.28.25"></a><var>28.25</var>occurrence of an emergency situation, the insurer or the independent adjuster's employer, <br/>
<a id="pl.28.26"></a><var>28.26</var>in the notification required by paragraph (a), notifies the commissioner by providing the <br/>
<a id="pl.28.27"></a><var>28.27</var>following information in a format prescribed by the commissioner:<br/>
<a id="pl.28.28"></a><var>28.28</var>(1) the name of the individual;<br/>
<a id="pl.28.29"></a><var>28.29</var>(2) the Social Security number of the individual;<br/>
<a id="pl.28.30"></a><var>28.30</var>(3) the name of the insurer the independent adjuster will represent;<br/>
<a id="pl.28.31"></a><var>28.31</var>(4) the effective date of the contract between the insurer and independent adjuster or <br/>
<a id="pl.28.32"></a><var>28.32</var>the independent adjuster's employer;<br/>
<a id="pl.28.33"></a><var>28.33</var>(5) the catastrophe, emergency situation, or loss control number;<br/>
<a id="pl.28.34"></a><var>28.34</var>(6) the catastrophe or emergency situation event name; and<br/>
<a id="pl.28.35"></a><var>28.35</var>(7) other information the commissioner deems necessary.<br/>
<a id="pl.29.1"></a><var>29.1</var>(c) An emergency independent adjuster's license or registration remains in force for <br/>
<a id="pl.29.2"></a><var>29.2</var>the period of time established by the commissioner 180 days; such license or registration <br/>
<a id="pl.29.3"></a><var>29.3</var>shall be effective for all catastrophes described in paragraph (a), clauses (1) and (2). Such <br/>
<a id="pl.29.4"></a><var>29.4</var>license or registration may be extended for 180 days.<br/>
<a id="pl.29.5"></a><var>29.5</var>The commissioner may summarily suspend or revoke the right of any person <br/>
<a id="pl.29.6"></a><var>29.6</var>adjusting in this state under the authority of this section to continue to adjust in this state, <br/>
<a id="pl.29.7"></a><var>29.7</var>if the commissioner finds that that person has engaged in any of the practices forbidden <br/>
<a id="pl.29.8"></a><var>29.8</var>to a licensed adjuster under sections 
         <statute_ref>72B.01</statute_ref> to 
         <statute_ref>72B.14</statute_ref>. Notice of such suspension or <br/>
<a id="pl.29.9"></a><var>29.9</var>revocation may be given personally or by mail sent to the temporary address stated in the <br/>
<a id="pl.29.10"></a><var>29.10</var>registration and to the insurer or independent adjusting firm company who submitted the <br/>
<a id="pl.29.11"></a><var>29.11</var>independent adjuster information.<br/>
<br/>
<a id="bill.0.40.0"></a><a id="pl.29.12"></a><var>29.12</var>    Sec. 40. Minnesota Statutes 2008, section 72B.08, subdivision 8, is amended to read:<br/>
<a id="pl.29.13"></a><var>29.13</var>    Subd. 8. <b>Bond.</b> In the case of any licensee or permit holder who has had a license or <br/>
<a id="pl.29.14"></a><var>29.14</var>permit suspended or revoked or whose license renewal has been prohibited by a lawful <br/>
<a id="pl.29.15"></a><var>29.15</var>order of the commissioner, the commissioner may condition the issuance of a new license <br/>
<a id="pl.29.16"></a><var>29.16</var>on the filing of a surety bond in an amount not to exceed $10,000, made and conditioned in <br/>
<a id="pl.29.17"></a><var>29.17</var>accordance with the requirements of section 
         <statute_ref>72B.04, subdivision 4</statute_ref> 72B.041, subdivision <br/>
<a id="pl.29.18"></a><var>29.18</var>3, relating to public adjusters' bonds. Nothing in this subdivision shall reduce or alter the <br/>
<a id="pl.29.19"></a><var>29.19</var>bonding requirements for a public adjuster.<br/>
<br/>
<a id="bill.0.41.0"></a><a id="pl.29.20"></a><var>29.20</var>    Sec. 41. Minnesota Statutes 2008, section 79A.03, subdivision 8, is amended to read:<br/>
<a id="pl.29.21"></a><var>29.21</var>    Subd. 8. <b>Processing application.</b> The commissioner shall grant or deny the group's <br/>
<a id="pl.29.22"></a><var>29.22</var>application to self-insure within 60 days after a complete application has been filed, <br/>
<a id="pl.29.23"></a><var>29.23</var>provided that the time may be extended for an additional 30 days upon 15 days' prior <br/>
<a id="pl.29.24"></a><var>29.24</var>notice to the applicant. The commissioner shall grant approval for self-insurance upon <br/>
<a id="pl.29.25"></a><var>29.25</var>a determination that the financial ability of the self-insurer's group is sufficient to fulfill <br/>
<a id="pl.29.26"></a><var>29.26</var>all joint and several obligations of the member companies that may arise under chapter <br/>
<a id="pl.29.27"></a><var>29.27</var>176 or this chapter; the gross annual premium of the group members is at least $300,000 <br/>
<a id="pl.29.28"></a><var>29.28</var>150 percent of the WCRA minimum retention in effect at the time of the application; the <br/>
<a id="pl.29.29"></a><var>29.29</var>group has established a fund pursuant to Minnesota Rules, parts 2780.4100 to 2780.5000; <br/>
<a id="pl.29.30"></a><var>29.30</var>the group has contracted with a licensed workers' compensation service company to <br/>
<a id="pl.29.31"></a><var>29.31</var>administer its program; and the required securities or surety bond shall be on deposit prior <br/>
<a id="pl.29.32"></a><var>29.32</var>to the effective date of coverage for any member. Approval shall be effective until revoked <br/>
<a id="pl.29.33"></a><var>29.33</var>by order of the commissioner or until the employer members of the group become insured.<br/>
<a id="pl.30.1"></a><var>30.1</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010, and applies to <br/>
<a id="pl.30.2"></a><var>30.2</var>applications processed on or after that date, but not to self-insured groups existing as of <br/>
<a id="pl.30.3"></a><var>30.3</var>that date.<br/>
<br/>
<a id="bill.0.42.0"></a><a id="pl.30.4"></a><var>30.4</var>    Sec. 42. Minnesota Statutes 2008, section 79A.06, subdivision 5, is amended to read:<br/>
<a id="pl.30.5"></a><var>30.5</var>    Subd. 5. <b>Private employers who have ceased to be self-insured.</b> (a) Private <br/>
<a id="pl.30.6"></a><var>30.6</var>employers who have ceased to be private self-insurers shall discharge their continuing <br/>
<a id="pl.30.7"></a><var>30.7</var>obligations to secure the payment of compensation which is accrued during the period of <br/>
<a id="pl.30.8"></a><var>30.8</var>self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to 21, by compliance <br/>
<a id="pl.30.9"></a><var>30.9</var>with all of the following obligations of current certificate holders:<br/>
<a id="pl.30.10"></a><var>30.10</var>    (1) Filing reports with the commissioner to carry out the requirements of this chapter;<br/>
<a id="pl.30.11"></a><var>30.11</var>    (2) Depositing and maintaining a security deposit for accrued liability for the <br/>
<a id="pl.30.12"></a><var>30.12</var>payment of any compensation which may become due, pursuant to chapter 176. However, <br/>
<a id="pl.30.13"></a><var>30.13</var>if a private employer who has ceased to be a private self-insurer purchases an insurance <br/>
<a id="pl.30.14"></a><var>30.14</var>policy from an insurer authorized to transact workers' compensation insurance in this state <br/>
<a id="pl.30.15"></a><var>30.15</var>which provides coverage of all claims for compensation arising out of injuries occurring <br/>
<a id="pl.30.16"></a><var>30.16</var>during the entire period the employer was self-insured, whether or not reported during <br/>
<a id="pl.30.17"></a><var>30.17</var>that period, the policy will:<br/>
<a id="pl.30.18"></a><var>30.18</var>    (i) discharge the obligation of the employer to maintain a security deposit for the <br/>
<a id="pl.30.19"></a><var>30.19</var>payment of the claims covered under the policy;<br/>
<a id="pl.30.20"></a><var>30.20</var>    (ii) discharge any obligation which the self-insurers' security fund has or may have <br/>
<a id="pl.30.21"></a><var>30.21</var>for payment of all claims for compensation arising out of injuries occurring during the <br/>
<a id="pl.30.22"></a><var>30.22</var>period the employer was self-insured, whether or not reported during that period; and<br/>
<a id="pl.30.23"></a><var>30.23</var>    (iii) discharge the obligations of the employer to pay any future assessments to <br/>
<a id="pl.30.24"></a><var>30.24</var>the self-insurers' security fund; provided, however, that a member that terminates its <br/>
<a id="pl.30.25"></a><var>30.25</var>self-insurance authority on or after August 1, 2010, shall be liable for an assessment under <br/>
<a id="pl.30.26"></a><var>30.26</var>paragraph (b). The actuarial opinion shall not take into consideration any transfer of the <br/>
<a id="pl.30.27"></a><var>30.27</var>member's liabilities to an insurance policy if the member obtains a replacement policy as <br/>
<a id="pl.30.28"></a><var>30.28</var>described in this subdivision within one year of the date of terminating its self-insurance.<br/>
<a id="pl.30.29"></a><var>30.29</var>    A private employer who has ceased to be a private self-insurer may instead buy an <br/>
<a id="pl.30.30"></a><var>30.30</var>insurance policy described above, except that it covers only a portion of the period of time <br/>
<a id="pl.30.31"></a><var>30.31</var>during which the private employer was self-insured; purchase of such a policy discharges <br/>
<a id="pl.30.32"></a><var>30.32</var>any obligation that the self-insurers' security fund has or may have for payment of all <br/>
<a id="pl.30.33"></a><var>30.33</var>claims for compensation arising out of injuries occurring during the period for which the <br/>
<a id="pl.30.34"></a><var>30.34</var>policy provides coverage, whether or not reported during that period.<br/>
<a id="pl.31.1"></a><var>31.1</var>    A policy described in this clause may not be issued by an insurer unless it has <br/>
<a id="pl.31.2"></a><var>31.2</var>previously been approved as to form and substance by the commissioner; and<br/>
<a id="pl.31.3"></a><var>31.3</var>    (3) Paying within 30 days all assessments of which notice is sent by the security <br/>
<a id="pl.31.4"></a><var>31.4</var>fund, for a period of seven years from the last day its certificate of self-insurance was in <br/>
<a id="pl.31.5"></a><var>31.5</var>effect. Thereafter, the private employer who has ceased to be a private self-insurer may <br/>
<a id="pl.31.6"></a><var>31.6</var>either: (i) continue to pay within 30 days all assessments of which notice is sent by the <br/>
<a id="pl.31.7"></a><var>31.7</var>security fund until it has no incurred liabilities for the payment of compensation arising <br/>
<a id="pl.31.8"></a><var>31.8</var>out of injuries during the period of self-insurance; or (ii) pay the security fund a cash <br/>
<a id="pl.31.9"></a><var>31.9</var>payment equal to four percent of the net present value of all remaining incurred liabilities <br/>
<a id="pl.31.10"></a><var>31.10</var>for the payment of compensation under sections 
         <statute_ref>176.101</statute_ref> and 
         <statute_ref>176.111</statute_ref> as certified by a <br/>
<a id="pl.31.11"></a><var>31.11</var>member of the casualty actuarial society. Assessments shall be based on the benefits paid <br/>
<a id="pl.31.12"></a><var>31.12</var>by the employer during the calendar year immediately preceding the calendar year in <br/>
<a id="pl.31.13"></a><var>31.13</var>which the employer's right to self-insure is terminated or withdrawn.<br/>
<a id="pl.31.14"></a><var>31.14</var>    (b) With respect to a self-insurer who terminates its self-insurance authority after <br/>
<a id="pl.31.15"></a><var>31.15</var>April 1, 1998, that member shall obtain and file with the commissioner an actuarial <br/>
<a id="pl.31.16"></a><var>31.16</var>opinion of its outstanding liabilities as determined by an associate or fellow of the <br/>
<a id="pl.31.17"></a><var>31.17</var>Casualty Actuarial Society within 120 days of the date of its termination. If the actuarial <br/>
<a id="pl.31.18"></a><var>31.18</var>opinion is not timely filed, the self-insurers' security fund may, at its discretion, engage <br/>
<a id="pl.31.19"></a><var>31.19</var>the services of an actuary for this purpose. The expense of this actuarial opinion must <br/>
<a id="pl.31.20"></a><var>31.20</var>be assessed against and be the obligation of the self-insurer. The commissioner may <br/>
<a id="pl.31.21"></a><var>31.21</var>issue a certificate of default against the self-insurer for failure to pay this assessment <br/>
<a id="pl.31.22"></a><var>31.22</var>to the self-insurers' security fund as provided by section 
         <statute_ref>79A.04, subdivision 9</statute_ref>. The <br/>
<a id="pl.31.23"></a><var>31.23</var>opinion must separate liability for indemnity benefits from liability from medical benefits, <br/>
<a id="pl.31.24"></a><var>31.24</var>and must may discount each liabilities up to four percent per annum to net present <br/>
<a id="pl.31.25"></a><var>31.25</var>value. Within 30 60 days after notification of approval of the actuarial opinion by the <br/>
<a id="pl.31.26"></a><var>31.26</var>commissioner, the exiting member shall pay to the security fund an amount equal to 120 <br/>
<a id="pl.31.27"></a><var>31.27</var>percent of that discounted outstanding indemnity liability, multiplied by the greater of the <br/>
<a id="pl.31.28"></a><var>31.28</var>average annualized assessment rate since inception of the security fund or the annual <br/>
<a id="pl.31.29"></a><var>31.29</var>rate at the time of the most recent assessment before termination determined as follows: <br/>
<a id="pl.31.30"></a><var>31.30</var>a percentage will be determined by dividing the security fund's members' deficit as <br/>
<a id="pl.31.31"></a><var>31.31</var>determined by the most recent audited financial statement of the security fund by the total <br/>
<a id="pl.31.32"></a><var>31.32</var>actuarial liability of all members of the security fund as calculated by the commissioner <br/>
<a id="pl.31.33"></a><var>31.33</var>within 30 days of the exit date of the member. This quotient will then be multiplied by <br/>
<a id="pl.31.34"></a><var>31.34</var>that exiting member's total future liability as contained in the exiting member's actuarial <br/>
<a id="pl.31.35"></a><var>31.35</var>opinion. If the payment is not made within 30 days of the notification, interest on it at the <br/>
<a id="pl.32.1"></a><var>32.1</var>rate prescribed by section 
         <statute_ref>549.09</statute_ref> must be paid by the former member to the security fund <br/>
<a id="pl.32.2"></a><var>32.2</var>until the principal amount is paid in full.<br/>
<a id="pl.32.3"></a><var>32.3</var>    (c) A former member who terminated its self-insurance authority before April 1, <br/>
<a id="pl.32.4"></a><var>32.4</var>1998, who has paid assessments to the self-insurers' security fund for seven years, and <br/>
<a id="pl.32.5"></a><var>32.5</var>whose annualized assessment is $15,000 or less, may buy out of its outstanding liabilities <br/>
<a id="pl.32.6"></a><var>32.6</var>to the self-insurers' security fund by an amount calculated as follows: 
         <statute_ref>1.35 </statute_ref>multiplied by <br/>
<a id="pl.32.7"></a><var>32.7</var>the indemnity case reserves at the time of the calculation, multiplied by the then current <br/>
<a id="pl.32.8"></a><var>32.8</var>self-insurers' security fund annualized assessment rate.<br/>
<a id="pl.32.9"></a><var>32.9</var>    (d) A former member who terminated its self-insurance authority before April 1, <br/>
<a id="pl.32.10"></a><var>32.10</var>1998, and who is paying assessments within the first seven years after ceasing to be <br/>
<a id="pl.32.11"></a><var>32.11</var>self-insured under paragraph (a), clause (3), may elect to buy out its outstanding liabilities <br/>
<a id="pl.32.12"></a><var>32.12</var>to the self-insurers' security fund by obtaining and filing with the commissioner an <br/>
<a id="pl.32.13"></a><var>32.13</var>actuarial opinion of its outstanding liabilities as determined by an associate or fellow of <br/>
<a id="pl.32.14"></a><var>32.14</var>the Casualty Actuarial Society. The opinion must separate liability for indemnity benefits <br/>
<a id="pl.32.15"></a><var>32.15</var>from liability for medical benefits, and must discount each up to four percent per annum to <br/>
<a id="pl.32.16"></a><var>32.16</var>net present value. Within 30 days after notification of approval of the actuarial opinion <br/>
<a id="pl.32.17"></a><var>32.17</var>by the commissioner, the member shall pay to the security fund an amount equal to 120 <br/>
<a id="pl.32.18"></a><var>32.18</var>percent of that discounted outstanding indemnity liability, multiplied by the greater of the <br/>
<a id="pl.32.19"></a><var>32.19</var>average annualized assessment rate since inception of the security fund or the annual rate <br/>
<a id="pl.32.20"></a><var>32.20</var>at the time of the most recent assessment.<br/>
<a id="pl.32.21"></a><var>32.21</var>    (e) A former member who has paid the security fund according to paragraphs (b) to <br/>
<a id="pl.32.22"></a><var>32.22</var>(d) and subsequently receives authority from the commissioner to again self-insure shall be <br/>
<a id="pl.32.23"></a><var>32.23</var>assessed under section 
         <statute_ref>79A.12, subdivision 2</statute_ref>, only on indemnity benefits paid on injuries <br/>
<a id="pl.32.24"></a><var>32.24</var>that occurred after the former member received authority to self-insure again; provided <br/>
<a id="pl.32.25"></a><var>32.25</var>that the member furnishes verified data regarding those benefits to the security fund.<br/>
<a id="pl.32.26"></a><var>32.26</var>    (f) In addition to proceedings to establish liabilities and penalties otherwise <br/>
<a id="pl.32.27"></a><var>32.27</var>provided, a failure to comply may be the subject of a proceeding before the commissioner. <br/>
<a id="pl.32.28"></a><var>32.28</var>An appeal from the commissioner's determination may be taken pursuant to the contested <br/>
<a id="pl.32.29"></a><var>32.29</var>case procedures of chapter 14 within 30 days of the commissioner's written determination.<br/>
<a id="pl.32.30"></a><var>32.30</var>    Any current or past member of the self-insurers' security fund is subject to service of <br/>
<a id="pl.32.31"></a><var>32.31</var>process on any claim arising out of chapter 176 or this chapter in the manner provided by <br/>
<a id="pl.32.32"></a><var>32.32</var>section 
         <statute_ref>5.25</statute_ref>, or as otherwise provided by law. The issuance of a certificate to self-insure <br/>
<a id="pl.32.33"></a><var>32.33</var>to the private self-insured employer shall be deemed to be the agreement that any process <br/>
<a id="pl.32.34"></a><var>32.34</var>which is served in accordance with this section shall be of the same legal force and effect <br/>
<a id="pl.32.35"></a><var>32.35</var>as if served personally within this state.<br/>
<a id="pl.33.1"></a><var>33.1</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010, and applies to <br/>
<a id="pl.33.2"></a><var>33.2</var>terminations of self-insurance authority that become effective on or after that date.<br/>
<br/>
<a id="bill.0.43.0"></a><a id="pl.33.3"></a><var>33.3</var>    Sec. 43. Minnesota Statutes 2008, section 79A.21, subdivision 3, is amended to read:<br/>
<a id="pl.33.4"></a><var>33.4</var>    Subd. 3. <b>Approval.</b> The commissioner shall approve an application for <br/>
<a id="pl.33.5"></a><var>33.5</var>self-insurance upon a determination that all of the following conditions are met:<br/>
<a id="pl.33.6"></a><var>33.6</var>(1) a completed application and all required documents have been submitted to <br/>
<a id="pl.33.7"></a><var>33.7</var>the commissioner;<br/>
<a id="pl.33.8"></a><var>33.8</var>(2) the financial ability of the commercial self-insurance group is sufficient to fulfill <br/>
<a id="pl.33.9"></a><var>33.9</var>all obligations that may arise under this chapter or chapter 176;<br/>
<a id="pl.33.10"></a><var>33.10</var>(3) the annual premium of the commercial self-insurance group to be charged to <br/>
<a id="pl.33.11"></a><var>33.11</var>initial members is at least $400,000 150 percent of the WCRA minimum retention in <br/>
<a id="pl.33.12"></a><var>33.12</var>effect at the time of the application;<br/>
<a id="pl.33.13"></a><var>33.13</var>(4) the commercial self-insurance group has contracted with a service company to <br/>
<a id="pl.33.14"></a><var>33.14</var>administer its program; and<br/>
<a id="pl.33.15"></a><var>33.15</var>(5) the required securities or surety bond shall be on deposit prior to the effective <br/>
<a id="pl.33.16"></a><var>33.16</var>date of coverage for the commercial self-insurance group.<br/>
<a id="pl.33.17"></a><var>33.17</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010, and applies to <br/>
<a id="pl.33.18"></a><var>33.18</var>applications processed on or after that date, but not to self-insured groups existing as of <br/>
<a id="pl.33.19"></a><var>33.19</var>that date.<br/>
<br/>
<a id="bill.0.44.0"></a><a id="pl.33.20"></a><var>33.20</var>    Sec. 44. Minnesota Statutes 2008, section 80A.41, is amended to read:<br/>
<a id="pl.33.21"></a><var>33.21</var><b>80A.41 SECTION 102; DEFINITIONS. </b><br/>
<a id="pl.33.22"></a><var>33.22</var>    In this chapter, unless the context otherwise requires: <br/>
<a id="pl.33.23"></a><var>33.23</var>(1) "Accredited investor" means an accredited investor as the term is defined in Rule <br/>
<a id="pl.33.24"></a><var>33.24</var>501(a) of Regulation D adopted pursuant to the Securities Act of 1933. <br/>
<a id="pl.33.25"></a><var>33.25</var>    (2) "Administrator" means the commissioner of commerce. <br/>
<a id="pl.33.26"></a><var>33.26</var>    (3) "Agent" means an individual, other than a broker-dealer, who represents a <br/>
<a id="pl.33.27"></a><var>33.27</var>broker-dealer in effecting or attempting to effect purchases or sales of securities or <br/>
<a id="pl.33.28"></a><var>33.28</var>represents an issuer in effecting or attempting to effect purchases or sales of the issuer's <br/>
<a id="pl.33.29"></a><var>33.29</var>securities.  But a partner, officer, or director of a broker-dealer or issuer, or an individual <br/>
<a id="pl.33.30"></a><var>33.30</var>having a similar status or performing similar functions is an agent only if the individual <br/>
<a id="pl.33.31"></a><var>33.31</var>otherwise comes within the term.  The term does not include an individual excluded by <br/>
<a id="pl.33.32"></a><var>33.32</var>rule adopted or order issued under this chapter. <br/>
<a id="pl.33.33"></a><var>33.33</var>    (4) "Bank" means: <br/>
<a id="pl.34.1"></a><var>34.1</var>    (A) a banking institution organized under the laws of the United States; <br/>
<a id="pl.34.2"></a><var>34.2</var>    (B) a member bank of the Federal Reserve System; <br/>
<a id="pl.34.3"></a><var>34.3</var>    (C) any other banking institution, whether incorporated or not, doing business <br/>
<a id="pl.34.4"></a><var>34.4</var>under the laws of a state or of the United States, a substantial portion of the business <br/>
<a id="pl.34.5"></a><var>34.5</var>of which consists of receiving deposits or exercising fiduciary powers similar to those <br/>
<a id="pl.34.6"></a><var>34.6</var>permitted to be exercised by national banks under the authority of the Comptroller of the <br/>
<a id="pl.34.7"></a><var>34.7</var>Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a), and which <br/>
<a id="pl.34.8"></a><var>34.8</var>is supervised and examined by a state or federal agency having supervision over banks, <br/>
<a id="pl.34.9"></a><var>34.9</var>and which is not operated for the purpose of evading this chapter; and <br/>
<a id="pl.34.10"></a><var>34.10</var>    (D) a receiver, conservator, or other liquidating agent of any institution or firm <br/>
<a id="pl.34.11"></a><var>34.11</var>included in subparagraph (A), (B), or (C). <br/>
<a id="pl.34.12"></a><var>34.12</var>    (5) "Broker-dealer" means a person engaged in the business of effecting transactions <br/>
<a id="pl.34.13"></a><var>34.13</var>in securities for the account of others or for the person's own account.  The term does <br/>
<a id="pl.34.14"></a><var>34.14</var>not include: <br/>
<a id="pl.34.15"></a><var>34.15</var>    (A) an agent; <br/>
<a id="pl.34.16"></a><var>34.16</var>    (B) an issuer; <br/>
<a id="pl.34.17"></a><var>34.17</var>    (C) a depository institution; provided such activities are conducted in accordance <br/>
<a id="pl.34.18"></a><var>34.18</var>with such rules as may be adopted by the administrator; <br/>
<a id="pl.34.19"></a><var>34.19</var>    (D) an international banking institution; or <br/>
<a id="pl.34.20"></a><var>34.20</var>    (E) a person excluded by rule adopted or order issued under this chapter. <br/>
<a id="pl.34.21"></a><var>34.21</var>    (6) "Depository institution" means: <br/>
<a id="pl.34.22"></a><var>34.22</var>    (A) a bank; or <br/>
<a id="pl.34.23"></a><var>34.23</var>    (B) a savings institution, trust company, credit union, or similar institution that <br/>
<a id="pl.34.24"></a><var>34.24</var>is organized or chartered under the laws of a state or of the United States, authorized <br/>
<a id="pl.34.25"></a><var>34.25</var>to receive deposits, and supervised and examined by an official or agency of a state or <br/>
<a id="pl.34.26"></a><var>34.26</var>the United States if its deposits or share accounts are insured to the maximum amount <br/>
<a id="pl.34.27"></a><var>34.27</var>authorized by statute by the Federal Deposit Insurance Corporation, the National Credit <br/>
<a id="pl.34.28"></a><var>34.28</var>Union Share Insurance Fund, or a successor authorized by federal law.  The term does <br/>
<a id="pl.34.29"></a><var>34.29</var>not include: <br/>
<a id="pl.34.30"></a><var>34.30</var>    (i) an insurance company or other organization primarily engaged in the business <br/>
<a id="pl.34.31"></a><var>34.31</var>of insurance; <br/>
<a id="pl.34.32"></a><var>34.32</var>    (ii) a Morris Plan bank; or <br/>
<a id="pl.34.33"></a><var>34.33</var>    (iii) an industrial loan company that is not an "insured depository institution" as <br/>
<a id="pl.34.34"></a><var>34.34</var>defined in section 3(c)(2) of the Federal Deposit Insurance Act, United States Code, title <br/>
<a id="pl.34.35"></a><var>34.35</var>12, section 1813(c)(2), or any successor federal statute. <br/>
<a id="pl.35.1"></a><var>35.1</var>    (7) "Federal covered investment adviser" means a person registered under the <br/>
<a id="pl.35.2"></a><var>35.2</var>Investment Advisers Act of 1940. <br/>
<a id="pl.35.3"></a><var>35.3</var>    (8) "Federal covered security" means a security that is, or upon completion of a <br/>
<a id="pl.35.4"></a><var>35.4</var>transaction will be, a covered security under Section 18(b) of the Securities Act of 1933 <br/>
<a id="pl.35.5"></a><var>35.5</var>(15 U.S.C. Section 77r(b)) or rules or regulations adopted pursuant to that provision. <br/>
<a id="pl.35.6"></a><var>35.6</var>    (9) "Filing" means the receipt under this chapter of a record by the administrator or <br/>
<a id="pl.35.7"></a><var>35.7</var>a designee of the administrator. <br/>
<a id="pl.35.8"></a><var>35.8</var>    (10) "Fraud," "deceit," and "defraud" are not limited to common law deceit. <br/>
<a id="pl.35.9"></a><var>35.9</var>    (11) "Guaranteed" means guaranteed as to payment of all principal and all interest. <br/>
<a id="pl.35.10"></a><var>35.10</var>    (12) "Institutional investor" means any of the following, whether acting for itself or <br/>
<a id="pl.35.11"></a><var>35.11</var>for others in a fiduciary capacity: <br/>
<a id="pl.35.12"></a><var>35.12</var>    (A) a depository institution or international banking institution; <br/>
<a id="pl.35.13"></a><var>35.13</var>    (B) an insurance company; <br/>
<a id="pl.35.14"></a><var>35.14</var>    (C) a separate account of an insurance company; <br/>
<a id="pl.35.15"></a><var>35.15</var>    (D) an investment company as defined in the Investment Company Act of 1940; <br/>
<a id="pl.35.16"></a><var>35.16</var>    (E) a broker-dealer registered under the Securities Exchange Act of 1934; <br/>
<a id="pl.35.17"></a><var>35.17</var>    (F) an employee pension, profit-sharing, or benefit plan if the plan has total assets <br/>
<a id="pl.35.18"></a><var>35.18</var>in excess of $10,000,000 or its investment decisions are made by a named fiduciary, as <br/>
<a id="pl.35.19"></a><var>35.19</var>defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer <br/>
<a id="pl.35.20"></a><var>35.20</var>registered under the Securities Exchange Act of 1934, an investment adviser registered <br/>
<a id="pl.35.21"></a><var>35.21</var>or exempt from registration under the Investment Advisers Act of 1940, an investment <br/>
<a id="pl.35.22"></a><var>35.22</var>adviser registered under this chapter, a depository institution, or an insurance company; <br/>
<a id="pl.35.23"></a><var>35.23</var>    (G) a plan established and maintained by a state, a political subdivision of a state, or <br/>
<a id="pl.35.24"></a><var>35.24</var>an agency or instrumentality of a state or a political subdivision of a state for the benefit <br/>
<a id="pl.35.25"></a><var>35.25</var>of its employees, if the plan has total assets in excess of $10,000,000 or its investment <br/>
<a id="pl.35.26"></a><var>35.26</var>decisions are made by a duly designated public official or by a named fiduciary, as <br/>
<a id="pl.35.27"></a><var>35.27</var>defined in the Employee Retirement Income Security Act of 1974, that is a broker-dealer <br/>
<a id="pl.35.28"></a><var>35.28</var>registered under the Securities Exchange Act of 1934, an investment adviser registered <br/>
<a id="pl.35.29"></a><var>35.29</var>or exempt from registration under the Investment Advisers Act of 1940, an investment <br/>
<a id="pl.35.30"></a><var>35.30</var>adviser registered under this chapter, a depository institution, or an insurance company; <br/>
<a id="pl.35.31"></a><var>35.31</var>    (H) a trust, if it has total assets in excess of $10,000,000, its trustee is a depository <br/>
<a id="pl.35.32"></a><var>35.32</var>institution, and its participants are exclusively plans of the types identified in subparagraph <br/>
<a id="pl.35.33"></a><var>35.33</var>(F) or (G), regardless of the size of their assets, except a trust that includes as participants <br/>
<a id="pl.35.34"></a><var>35.34</var>self-directed individual retirement accounts or similar self-directed plans; <br/>
<a id="pl.35.35"></a><var>35.35</var>    (I) an organization described in Section 501(c)(3) of the Internal Revenue Code (26 <br/>
<a id="pl.35.36"></a><var>35.36</var>U.S.C. Section 501(c)(3)), corporation, Massachusetts trust or similar business trust, <br/>
<a id="pl.36.1"></a><var>36.1</var>limited liability company, or partnership, not formed for the specific purpose of acquiring <br/>
<a id="pl.36.2"></a><var>36.2</var>the securities offered, with total assets in excess of $10,000,000; <br/>
<a id="pl.36.3"></a><var>36.3</var>    (J) a small business investment company licensed by the Small Business <br/>
<a id="pl.36.4"></a><var>36.4</var>Administration under Section 301(c) of the Small Business Investment Act of 1958 (15 <br/>
<a id="pl.36.5"></a><var>36.5</var>U.S.C. Section 681(c)) with total assets in excess of $10,000,000; <br/>
<a id="pl.36.6"></a><var>36.6</var>    (K) a private business development company as defined in Section 202(a)(22) of <br/>
<a id="pl.36.7"></a><var>36.7</var>the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(22)) with total assets <br/>
<a id="pl.36.8"></a><var>36.8</var>in excess of $10,000,000; <br/>
<a id="pl.36.9"></a><var>36.9</var>    (L) a federal covered investment adviser acting for its own account; <br/>
<a id="pl.36.10"></a><var>36.10</var>    (M) a "qualified institutional buyer" as defined in Rule 144A(a)(1), other than Rule <br/>
<a id="pl.36.11"></a><var>36.11</var>144A(a)(1)(i)(H), adopted under the Securities Act of 1933 (17 C.F.R. 230.144A); <br/>
<a id="pl.36.12"></a><var>36.12</var>    (N) a "major U.S. institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted <br/>
<a id="pl.36.13"></a><var>36.13</var>under the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6); <br/>
<a id="pl.36.14"></a><var>36.14</var>    (O) any other person, other than an individual, of institutional character with total <br/>
<a id="pl.36.15"></a><var>36.15</var>assets in excess of $10,000,000 not organized for the specific purpose of evading this <br/>
<a id="pl.36.16"></a><var>36.16</var>chapter; or <br/>
<a id="pl.36.17"></a><var>36.17</var>    (P) any other person specified by rule adopted or order issued under this chapter; <br/>
<a id="pl.36.18"></a><var>36.18</var>    (13) "Insurance company" means a company organized as an insurance company <br/>
<a id="pl.36.19"></a><var>36.19</var>whose primary business is writing insurance or reinsuring risks underwritten by insurance <br/>
<a id="pl.36.20"></a><var>36.20</var>companies and which is subject to supervision by the insurance commissioner or a similar <br/>
<a id="pl.36.21"></a><var>36.21</var>official or agency of a state. <br/>
<a id="pl.36.22"></a><var>36.22</var>    (14) "Insured" means insured as to payment of all principal and all interest. <br/>
<a id="pl.36.23"></a><var>36.23</var>    (15) "International banking institution" means an international financial institution <br/>
<a id="pl.36.24"></a><var>36.24</var>of which the United States is a member and whose securities are exempt from registration <br/>
<a id="pl.36.25"></a><var>36.25</var>under the Securities Act of 1933. <br/>
<a id="pl.36.26"></a><var>36.26</var>    (16) "Investment adviser" means a person that, for compensation, engages in the <br/>
<a id="pl.36.27"></a><var>36.27</var>business of advising others, either directly or through publications or writings, as to the <br/>
<a id="pl.36.28"></a><var>36.28</var>value of securities or the advisability of investing in, purchasing, or selling securities or <br/>
<a id="pl.36.29"></a><var>36.29</var>that, for compensation and as a part of a regular business, issues or promulgates analyses <br/>
<a id="pl.36.30"></a><var>36.30</var>or reports concerning securities.  The term includes a financial planner or other person <br/>
<a id="pl.36.31"></a><var>36.31</var>that, as an integral component of other financially related services, provides investment <br/>
<a id="pl.36.32"></a><var>36.32</var>advice to others for compensation as part of a business or that holds itself out as providing <br/>
<a id="pl.36.33"></a><var>36.33</var>investment advice to others for compensation.  The term does not include: <br/>
<a id="pl.36.34"></a><var>36.34</var>    (A) an investment adviser representative; <br/>
<a id="pl.36.35"></a><var>36.35</var>    (B) a lawyer, accountant, engineer, or teacher whose performance of investment <br/>
<a id="pl.36.36"></a><var>36.36</var>advice is solely incidental to the practice of the person's profession; <br/>
<a id="pl.37.1"></a><var>37.1</var>    (C) a broker-dealer or its agents whose performance of investment advice is solely <br/>
<a id="pl.37.2"></a><var>37.2</var>incidental to the conduct of business as a broker-dealer and that does not receive special <br/>
<a id="pl.37.3"></a><var>37.3</var>compensation for the investment advice; <br/>
<a id="pl.37.4"></a><var>37.4</var>    (D) a publisher of a bona fide newspaper, news magazine, or business or financial <br/>
<a id="pl.37.5"></a><var>37.5</var>publication of general and regular circulation; <br/>
<a id="pl.37.6"></a><var>37.6</var>    (E) a federal covered investment adviser; <br/>
<a id="pl.37.7"></a><var>37.7</var>    (F) a bank or savings institution; <br/>
<a id="pl.37.8"></a><var>37.8</var>    (G) any other person that is excluded by the Investment Advisers Act of 1940 from <br/>
<a id="pl.37.9"></a><var>37.9</var>the definition of investment adviser; or <br/>
<a id="pl.37.10"></a><var>37.10</var>    (H) any other person excluded by rule adopted or order issued under this chapter. <br/>
<a id="pl.37.11"></a><var>37.11</var>    (17) "Investment adviser representative" means an individual employed by or <br/>
<a id="pl.37.12"></a><var>37.12</var>associated with an investment adviser or federal covered investment adviser and who <br/>
<a id="pl.37.13"></a><var>37.13</var>makes any recommendations or otherwise gives investment advice regarding securities, <br/>
<a id="pl.37.14"></a><var>37.14</var>manages accounts or portfolios of clients, determines which recommendation or advice <br/>
<a id="pl.37.15"></a><var>37.15</var>regarding securities should be given, provides investment advice or holds herself or <br/>
<a id="pl.37.16"></a><var>37.16</var>himself out as providing investment advice, receives compensation to solicit, offer, or <br/>
<a id="pl.37.17"></a><var>37.17</var>negotiate for the sale of or for selling investment advice, or supervises employees who <br/>
<a id="pl.37.18"></a><var>37.18</var>perform any of the foregoing.  The term does not include an individual who: <br/>
<a id="pl.37.19"></a><var>37.19</var>    (A) performs only clerical or ministerial acts; <br/>
<a id="pl.37.20"></a><var>37.20</var>    (B) is an agent whose performance of investment advice is solely incidental to <br/>
<a id="pl.37.21"></a><var>37.21</var>the individual acting as an agent and who does not receive special compensation for <br/>
<a id="pl.37.22"></a><var>37.22</var>investment advisory services; <br/>
<a id="pl.37.23"></a><var>37.23</var>    (C) is employed by or associated with a federal covered investment adviser, unless <br/>
<a id="pl.37.24"></a><var>37.24</var>the individual has a "place of business" in this state as that term is defined by rule adopted <br/>
<a id="pl.37.25"></a><var>37.25</var>under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a) <br/>
<a id="pl.37.26"></a><var>37.26</var>and is <br/>
<a id="pl.37.27"></a><var>37.27</var>    (i) an "investment adviser representative" as that term is defined by rule adopted <br/>
<a id="pl.37.28"></a><var>37.28</var>under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or <br/>
<a id="pl.37.29"></a><var>37.29</var>    (ii) not a "supervised person" as that term is defined in Section 202(a)(25) of the <br/>
<a id="pl.37.30"></a><var>37.30</var>Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or <br/>
<a id="pl.37.31"></a><var>37.31</var>    (D) is excluded by rule adopted or order issued under this chapter. <br/>
<a id="pl.37.32"></a><var>37.32</var>    (18) "Issuer" means a person that issues or proposes to issue a security, subject to <br/>
<a id="pl.37.33"></a><var>37.33</var>the following: <br/>
<a id="pl.37.34"></a><var>37.34</var>    (A) The issuer of a voting trust certificate, collateral trust certificate, certificate of <br/>
<a id="pl.37.35"></a><var>37.35</var>deposit for a security, or share in an investment company without a board of directors or <br/>
<a id="pl.37.36"></a><var>37.36</var>individuals performing similar functions is the person performing the acts and assuming <br/>
<a id="pl.38.1"></a><var>38.1</var>the duties of depositor or manager pursuant to the trust or other agreement or instrument <br/>
<a id="pl.38.2"></a><var>38.2</var>under which the security is issued. <br/>
<a id="pl.38.3"></a><var>38.3</var>    (B) The issuer of an equipment trust certificate or similar security serving the same <br/>
<a id="pl.38.4"></a><var>38.4</var>purpose is the person by which the property is or will be used or to which the property <br/>
<a id="pl.38.5"></a><var>38.5</var>or equipment is or will be leased or conditionally sold or that is otherwise contractually <br/>
<a id="pl.38.6"></a><var>38.6</var>responsible for assuring payment of the certificate. <br/>
<a id="pl.38.7"></a><var>38.7</var>    (C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease <br/>
<a id="pl.38.8"></a><var>38.8</var>or in payments out of production under a lease, right, or royalty is the owner of an interest <br/>
<a id="pl.38.9"></a><var>38.9</var>in the lease or in payments out of production under a lease, right, or royalty, whether <br/>
<a id="pl.38.10"></a><var>38.10</var>whole or fractional, that creates fractional interests for the purpose of sale. <br/>
<a id="pl.38.11"></a><var>38.11</var>    (19) "Nonissuer transaction" or "nonissuer distribution" means a transaction or <br/>
<a id="pl.38.12"></a><var>38.12</var>distribution not directly or indirectly for the benefit of the issuer. <br/>
<a id="pl.38.13"></a><var>38.13</var>    (20) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an <br/>
<a id="pl.38.14"></a><var>38.14</var>offer to sell, a security or interest in a security for value.  The term does not include a <br/>
<a id="pl.38.15"></a><var>38.15</var>tender offer that is subject to Section 14(d) of the Securities Exchange Act of 1934 (15 <br/>
<a id="pl.38.16"></a><var>38.16</var>U.S.C. Section 78n(d)). <br/>
<a id="pl.38.17"></a><var>38.17</var>    (21) "Person" means an individual; corporation; business trust; estate; trust; <br/>
<a id="pl.38.18"></a><var>38.18</var>partnership; limited liability company; association; joint venture; government; <br/>
<a id="pl.38.19"></a><var>38.19</var>governmental subdivision, agency, or instrumentality; public corporation; or any other <br/>
<a id="pl.38.20"></a><var>38.20</var>legal or commercial entity. <br/>
<a id="pl.38.21"></a><var>38.21</var>    (22) "Place of business" of a broker-dealer, an investment adviser, or a federal <br/>
<a id="pl.38.22"></a><var>38.22</var>covered investment adviser means: <br/>
<a id="pl.38.23"></a><var>38.23</var>    (A) an office at which the broker-dealer, investment adviser, or federal covered <br/>
<a id="pl.38.24"></a><var>38.24</var>investment adviser regularly provides brokerage or investment advice or solicits, meets <br/>
<a id="pl.38.25"></a><var>38.25</var>with, or otherwise communicates with customers or clients; or <br/>
<a id="pl.38.26"></a><var>38.26</var>    (B) any other location that is held out to the general public as a location at which <br/>
<a id="pl.38.27"></a><var>38.27</var>the broker-dealer, investment adviser, or federal covered investment adviser provides <br/>
<a id="pl.38.28"></a><var>38.28</var>brokerage or investment advice or solicits, meets with, or otherwise communicates with <br/>
<a id="pl.38.29"></a><var>38.29</var>customers or clients. <br/>
<a id="pl.38.30"></a><var>38.30</var>    (23) "Predecessor Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31. <br/>
<a id="pl.38.31"></a><var>38.31</var>    (24) "Price amendment" means the amendment to a registration statement filed under <br/>
<a id="pl.38.32"></a><var>38.32</var>the Securities Act of 1933 or, if an amendment is not filed, the prospectus or prospectus <br/>
<a id="pl.38.33"></a><var>38.33</var>supplement filed under the Securities Act of 1933 that includes a statement of the offering <br/>
<a id="pl.38.34"></a><var>38.34</var>price, underwriting and selling discounts or commissions, amount of proceeds, conversion <br/>
<a id="pl.38.35"></a><var>38.35</var>rates, call prices, and other matters dependent upon the offering price. <br/>
<a id="pl.39.1"></a><var>39.1</var>    (25) "Principal place of business" of a broker-dealer or an investment adviser means <br/>
<a id="pl.39.2"></a><var>39.2</var>the executive office of the broker-dealer or investment adviser from which the officers, <br/>
<a id="pl.39.3"></a><var>39.3</var>partners, or managers of the broker-dealer or investment adviser direct, control, and <br/>
<a id="pl.39.4"></a><var>39.4</var>coordinate the activities of the broker-dealer or investment adviser. <br/>
<a id="pl.39.5"></a><var>39.5</var>    (26) Only for purposes of calculating the number of purchasers under section <br/>
<a id="pl.39.6"></a><var>39.6</var>80A.46(1) and 80A.46(14), "purchaser" does not include: <br/>
<a id="pl.39.7"></a><var>39.7</var>    (A) any relative, spouse, or relative of the spouse of a purchaser who has the same <br/>
<a id="pl.39.8"></a><var>39.8</var>principal residence as the purchaser; <br/>
<a id="pl.39.9"></a><var>39.9</var>    (B) any trust or estate in which a purchaser and any of the persons related to him as <br/>
<a id="pl.39.10"></a><var>39.10</var>specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50 <br/>
<a id="pl.39.11"></a><var>39.11</var>percent of the beneficial interest (excluding contingent interests); <br/>
<a id="pl.39.12"></a><var>39.12</var>    (C) any corporation or other organization of which a purchaser and any of the <br/>
<a id="pl.39.13"></a><var>39.13</var>persons related to the purchaser as specified in Regulation D, Rule 501(e)(1)(i) or <br/>
<a id="pl.39.14"></a><var>39.14</var>(e)(1)(ii) collectively are beneficial owners of more than 50 percent of the equity securities <br/>
<a id="pl.39.15"></a><var>39.15</var>(excluding directors' qualifying shares) or equity interests; and <br/>
<a id="pl.39.16"></a><var>39.16</var>    (D) any accredited investor. <br/>
<a id="pl.39.17"></a><var>39.17</var>    A corporation, partnership, or other entity must be counted as one purchaser.  If, <br/>
<a id="pl.39.18"></a><var>39.18</var>however, that entity is organized for the specific purpose of acquiring the securities offered <br/>
<a id="pl.39.19"></a><var>39.19</var>and is not an accredited investor, then each beneficial owner of equity securities or equity <br/>
<a id="pl.39.20"></a><var>39.20</var>interests in the entity shall count as a separate purchaser for all provisions of Regulation <br/>
<a id="pl.39.21"></a><var>39.21</var>D, except to the extent provided in Regulation D, Rule 501(e)(1). <br/>
<a id="pl.39.22"></a><var>39.22</var>    A noncontributory employee benefit plan within the meaning of Title I of the <br/>
<a id="pl.39.23"></a><var>39.23</var>Employee Retirement Income Security Act of 1974 shall be counted as one purchaser <br/>
<a id="pl.39.24"></a><var>39.24</var>where the trustee makes all investment decisions for the plan. <br/>
<a id="pl.39.25"></a><var>39.25</var>    (27) "Record," except in the phrases "of record," "official record," and "public <br/>
<a id="pl.39.26"></a><var>39.26</var>record," means information that is inscribed on a tangible medium or that is stored in an <br/>
<a id="pl.39.27"></a><var>39.27</var>electronic or other medium and is retrievable in perceivable form. <br/>
<a id="pl.39.28"></a><var>39.28</var>    (28) "Sale" includes every contract of sale, contract to sell, or disposition of, a <br/>
<a id="pl.39.29"></a><var>39.29</var>security or interest in a security for value, and "offer to sell" includes every attempt or <br/>
<a id="pl.39.30"></a><var>39.30</var>offer to dispose of, or solicitation of an offer to purchase, a security or interest in a <br/>
<a id="pl.39.31"></a><var>39.31</var>security for value. <br/>
<a id="pl.39.32"></a><var>39.32</var>    (A) A security given or delivered with, or as a bonus on account of, any purchase of <br/>
<a id="pl.39.33"></a><var>39.33</var>securities or any other thing is considered to constitute part of the subject of the purchase <br/>
<a id="pl.39.34"></a><var>39.34</var>and to have been offered and sold for value. <br/>
<a id="pl.39.35"></a><var>39.35</var>    (B) A gift of assessable stock is considered to involve an offer and sale. <br/>
<a id="pl.40.1"></a><var>40.1</var>    (C) A sale or offer of a warrant or right to purchase or subscribe to another security <br/>
<a id="pl.40.2"></a><var>40.2</var>of the same or another issuer and a sale or offer of a security that gives the holder a present <br/>
<a id="pl.40.3"></a><var>40.3</var>or future right or privilege to convert the security into another security of the same or <br/>
<a id="pl.40.4"></a><var>40.4</var>another issuer, are each considered to include an offer of the other security. <br/>
<a id="pl.40.5"></a><var>40.5</var>    (29) "Securities and Exchange Commission" means the United States Securities and <br/>
<a id="pl.40.6"></a><var>40.6</var>Exchange Commission. <br/>
<a id="pl.40.7"></a><var>40.7</var>    (30) "Security" means a note; stock; treasury stock; security future; bond; debenture; <br/>
<a id="pl.40.8"></a><var>40.8</var>evidence of indebtedness; certificate of interest or participation in a profit-sharing <br/>
<a id="pl.40.9"></a><var>40.9</var>agreement; collateral trust certificate; preorganization certificate or subscription; <br/>
<a id="pl.40.10"></a><var>40.10</var>transferable share; investment contract; voting trust certificate; certificate of deposit for a <br/>
<a id="pl.40.11"></a><var>40.11</var>security; fractional undivided interest in oil, gas, or other mineral rights; put, call, straddle, <br/>
<a id="pl.40.12"></a><var>40.12</var>option, or privilege on a security, certificate of deposit, or group or index of securities, <br/>
<a id="pl.40.13"></a><var>40.13</var>including an interest therein or based on the value thereof; put, call, straddle, option, or <br/>
<a id="pl.40.14"></a><var>40.14</var>privilege entered into on a national securities exchange relating to foreign currency; or, <br/>
<a id="pl.40.15"></a><var>40.15</var>in general, an interest or instrument commonly known as a "security"; or a certificate of <br/>
<a id="pl.40.16"></a><var>40.16</var>interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or <br/>
<a id="pl.40.17"></a><var>40.17</var>warrant or right to subscribe to or purchase, any of the foregoing.  The term: <br/>
<a id="pl.40.18"></a><var>40.18</var>    (A) includes both a certificated and an uncertificated security; <br/>
<a id="pl.40.19"></a><var>40.19</var>    (B) does not include an insurance or endowment policy or annuity contract under <br/>
<a id="pl.40.20"></a><var>40.20</var>which an insurance company promises to pay a fixed or variable sum of money either in a <br/>
<a id="pl.40.21"></a><var>40.21</var>lump sum or periodically for life or other specified period; <br/>
<a id="pl.40.22"></a><var>40.22</var>    (C) does not include an interest in a contributory or noncontributory pension or <br/>
<a id="pl.40.23"></a><var>40.23</var>welfare plan subject to the Employee Retirement Income Security Act of 1974; <br/>
<a id="pl.40.24"></a><var>40.24</var>    (D)  includes as an "investment contract," among other contracts, an interest in <br/>
<a id="pl.40.25"></a><var>40.25</var>a limited partnership and a limited liability company and an investment in a viatical <br/>
<a id="pl.40.26"></a><var>40.26</var>settlement or similar agreement; and <br/>
<a id="pl.40.27"></a><var>40.27</var>    (E) does not include any equity interest of a closely held corporation or other entity <br/>
<a id="pl.40.28"></a><var>40.28</var>with not more than 35 holders of the equity interest of such entity offered or sold pursuant <br/>
<a id="pl.40.29"></a><var>40.29</var>to a transaction in which 100 percent of the equity interest of such entity is sold as a means <br/>
<a id="pl.40.30"></a><var>40.30</var>to effect the sale of the business of the entity if the transaction has been negotiated on <br/>
<a id="pl.40.31"></a><var>40.31</var>behalf of all purchasers and if all purchasers have access to inside information regarding <br/>
<a id="pl.40.32"></a><var>40.32</var>the entity before consummating the transaction. <br/>
<a id="pl.40.33"></a><var>40.33</var>    (31) "Self-regulatory organization" means a national securities exchange registered <br/>
<a id="pl.40.34"></a><var>40.34</var>under the Securities Exchange Act of 1934, a national securities association of <br/>
<a id="pl.40.35"></a><var>40.35</var>broker-dealers registered under the Securities Exchange Act of 1934, a clearing agency <br/>
<a id="pl.41.1"></a><var>41.1</var>registered under the Securities Exchange Act of 1934, or the Municipal Securities <br/>
<a id="pl.41.2"></a><var>41.2</var>Rulemaking Board established under the Securities Exchange Act of 1934. <br/>
<a id="pl.41.3"></a><var>41.3</var>    (32) "Sign" means, with present intent to authenticate or adopt a record: <br/>
<a id="pl.41.4"></a><var>41.4</var>    (A) to execute or adopt a tangible symbol; or <br/>
<a id="pl.41.5"></a><var>41.5</var>    (B) to attach or logically associate with the record an electronic symbol, sound, <br/>
<a id="pl.41.6"></a><var>41.6</var>or process. <br/>
<a id="pl.41.7"></a><var>41.7</var>    (33) "State" means a state of the United States, the District of Columbia, Puerto <br/>
<a id="pl.41.8"></a><var>41.8</var>Rico, the United States Virgin Islands, or any territory or insular possession subject to the <br/>
<a id="pl.41.9"></a><var>41.9</var>jurisdiction of the United States. <br/>
<a id="pl.41.10"></a><var>41.10</var>    (34) "Associated with" with respect to a person means any partner, officer, director, <br/>
<a id="pl.41.11"></a><var>41.11</var>or manager of such person or any person occupying a similar status or performing <br/>
<a id="pl.41.12"></a><var>41.12</var>similar functions or any person directly or indirectly controlling, controlled by, or in <br/>
<a id="pl.41.13"></a><var>41.13</var>common control with, such person, but does not include a person whose primary duties <br/>
<a id="pl.41.14"></a><var>41.14</var>are ministerial or clerical.  <br/>
<br/>
<a id="bill.0.45.0"></a><a id="pl.41.15"></a><var>41.15</var>    Sec. 45. Minnesota Statutes 2008, section 80A.46, is amended to read:<br/>
<a id="pl.41.16"></a><var>41.16</var><b>80A.46 SECTION 202; EXEMPT TRANSACTIONS. </b><br/>
<a id="pl.41.17"></a><var>41.17</var>    The following transactions are exempt from the requirements of sections 80A.49 <br/>
<a id="pl.41.18"></a><var>41.18</var>through 80A.54 and 80A.71: <br/>
<a id="pl.41.19"></a><var>41.19</var>    (1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers <br/>
<a id="pl.41.20"></a><var>41.20</var>in Minnesota during any period of 12 consecutive months, whether effected by or through <br/>
<a id="pl.41.21"></a><var>41.21</var>a broker-dealer or not; <br/>
<a id="pl.41.22"></a><var>41.22</var>    (2) a nonissuer transaction by or through a broker-dealer registered, or exempt from <br/>
<a id="pl.41.23"></a><var>41.23</var>registration under this chapter, and a resale transaction by a sponsor of a unit investment <br/>
<a id="pl.41.24"></a><var>41.24</var>trust registered under the Investment Company Act of 1940, in a security of a class that <br/>
<a id="pl.41.25"></a><var>41.25</var>has been outstanding in the hands of the public for at least 90 days, if, at the date of <br/>
<a id="pl.41.26"></a><var>41.26</var>the transaction: <br/>
<a id="pl.41.27"></a><var>41.27</var>    (A) the issuer of the security is engaged in business, the issuer is not in the <br/>
<a id="pl.41.28"></a><var>41.28</var>organizational stage or in bankruptcy or receivership, and the issuer is not a blank check, <br/>
<a id="pl.41.29"></a><var>41.29</var>blind pool, or shell company that has no specific business plan or purpose or has indicated <br/>
<a id="pl.41.30"></a><var>41.30</var>that its primary business plan is to engage in a merger or combination of the business with, <br/>
<a id="pl.41.31"></a><var>41.31</var>or an acquisition of, an unidentified person; <br/>
<a id="pl.41.32"></a><var>41.32</var>    (B) the security is sold at a price reasonably related to its current market price; <br/>
<a id="pl.41.33"></a><var>41.33</var>    (C) the security does not constitute the whole or part of an unsold allotment to, or <br/>
<a id="pl.41.34"></a><var>41.34</var>a subscription or participation by, the broker-dealer as an underwriter of the security <br/>
<a id="pl.41.35"></a><var>41.35</var>or a redistribution; <br/>
<a id="pl.42.1"></a><var>42.1</var>    (D) a nationally recognized securities manual or its electronic equivalent designated <br/>
<a id="pl.42.2"></a><var>42.2</var>by rule adopted or order issued under this chapter or a record filed with the Securities and <br/>
<a id="pl.42.3"></a><var>42.3</var>Exchange Commission that is publicly available contains: <br/>
<a id="pl.42.4"></a><var>42.4</var>    (i) a description of the business and operations of the issuer; <br/>
<a id="pl.42.5"></a><var>42.5</var>    (ii) the names of the issuer's executive officers and the names of the issuer's <br/>
<a id="pl.42.6"></a><var>42.6</var>directors, if any; <br/>
<a id="pl.42.7"></a><var>42.7</var>    (iii) an audited balance sheet of the issuer as of a date within 18 months before the <br/>
<a id="pl.42.8"></a><var>42.8</var>date of the transaction or, in the case of a reorganization or merger when the parties to <br/>
<a id="pl.42.9"></a><var>42.9</var>the reorganization or merger each had an audited balance sheet, a pro forma balance <br/>
<a id="pl.42.10"></a><var>42.10</var>sheet for the combined organization; and <br/>
<a id="pl.42.11"></a><var>42.11</var>    (iv) an audited income statement for each of the issuer's two immediately previous <br/>
<a id="pl.42.12"></a><var>42.12</var>fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case <br/>
<a id="pl.42.13"></a><var>42.13</var>of a reorganization or merger when each party to the reorganization or merger had audited <br/>
<a id="pl.42.14"></a><var>42.14</var>income statements, a pro forma income statement; and <br/>
<a id="pl.42.15"></a><var>42.15</var>    (E) any one of the following requirements is met: <br/>
<a id="pl.42.16"></a><var>42.16</var>    (i) the issuer of the security has a class of equity securities listed on a national <br/>
<a id="pl.42.17"></a><var>42.17</var>securities exchange registered under Section 6 of the Securities Exchange Act of 1934 <br/>
<a id="pl.42.18"></a><var>42.18</var>or designated for trading on the National Association of Securities Dealers Automated <br/>
<a id="pl.42.19"></a><var>42.19</var>Quotation System; <br/>
<a id="pl.42.20"></a><var>42.20</var>    (ii) the issuer of the security is a unit investment trust registered under the Investment <br/>
<a id="pl.42.21"></a><var>42.21</var>Company Act of 1940; <br/>
<a id="pl.42.22"></a><var>42.22</var>    (iii) the issuer of the security, including its predecessors, has been engaged in <br/>
<a id="pl.42.23"></a><var>42.23</var>continuous business for at least three years; or <br/>
<a id="pl.42.24"></a><var>42.24</var>    (iv) the issuer of the security has total assets of at least $2,000,000 based on an <br/>
<a id="pl.42.25"></a><var>42.25</var>audited balance sheet as of a date within 18 months before the date of the transaction or, in <br/>
<a id="pl.42.26"></a><var>42.26</var>the case of a reorganization or merger when the parties to the reorganization or merger <br/>
<a id="pl.42.27"></a><var>42.27</var>each had such an audited balance sheet, a pro forma balance sheet for the combined <br/>
<a id="pl.42.28"></a><var>42.28</var>organization; <br/>
<a id="pl.42.29"></a><var>42.29</var>    (3) a nonissuer transaction by or through a broker-dealer registered or exempt from <br/>
<a id="pl.42.30"></a><var>42.30</var>registration under this chapter in a security of a foreign issuer that is a margin security <br/>
<a id="pl.42.31"></a><var>42.31</var>defined in regulations or rules adopted by the Board of Governors of the Federal Reserve <br/>
<a id="pl.42.32"></a><var>42.32</var>System; <br/>
<a id="pl.42.33"></a><var>42.33</var>    (4) a nonissuer transaction by or through a broker-dealer registered or exempt <br/>
<a id="pl.42.34"></a><var>42.34</var>from registration under this chapter in an outstanding security if the guarantor of the <br/>
<a id="pl.42.35"></a><var>42.35</var>security files reports with the Securities and Exchange Commission under the reporting <br/>
<a id="pl.43.1"></a><var>43.1</var>requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. <br/>
<a id="pl.43.2"></a><var>43.2</var>Sections 78m or 78o(d)); <br/>
<a id="pl.43.3"></a><var>43.3</var>    (5) a nonissuer transaction by or through a broker-dealer registered or exempt from <br/>
<a id="pl.43.4"></a><var>43.4</var>registration under this chapter in a security that: <br/>
<a id="pl.43.5"></a><var>43.5</var>    (A) is rated at the time of the transaction by a nationally recognized statistical rating <br/>
<a id="pl.43.6"></a><var>43.6</var>organization in one of its four highest rating categories; or <br/>
<a id="pl.43.7"></a><var>43.7</var>    (B) has a fixed maturity or a fixed interest or dividend, if: <br/>
<a id="pl.43.8"></a><var>43.8</var>    (i) a default has not occurred during the current fiscal year or within the three <br/>
<a id="pl.43.9"></a><var>43.9</var>previous fiscal years or during the existence of the issuer and any predecessor if less than <br/>
<a id="pl.43.10"></a><var>43.10</var>three fiscal years, in the payment of principal, interest, or dividends on the security; and <br/>
<a id="pl.43.11"></a><var>43.11</var>    (ii) the issuer is engaged in business, is not in the organizational stage or in <br/>
<a id="pl.43.12"></a><var>43.12</var>bankruptcy or receivership, and is not and has not been within the previous 12 months a <br/>
<a id="pl.43.13"></a><var>43.13</var>blank check, blind pool, or shell company that has no specific business plan or purpose or <br/>
<a id="pl.43.14"></a><var>43.14</var>has indicated that its primary business plan is to engage in a merger or combination of the <br/>
<a id="pl.43.15"></a><var>43.15</var>business with, or an acquisition of, an unidentified person; <br/>
<a id="pl.43.16"></a><var>43.16</var>    (6) a nonissuer transaction by or through a broker-dealer registered or exempt from <br/>
<a id="pl.43.17"></a><var>43.17</var>registration under this chapter effecting an unsolicited order or offer to purchase; <br/>
<a id="pl.43.18"></a><var>43.18</var>    (7) a nonissuer transaction executed by a bona fide pledgee without the purpose <br/>
<a id="pl.43.19"></a><var>43.19</var>of evading this chapter; <br/>
<a id="pl.43.20"></a><var>43.20</var>    (8) a nonissuer transaction by a federal covered investment adviser with investments <br/>
<a id="pl.43.21"></a><var>43.21</var>under management in excess of $100,000,000 acting in the exercise of discretionary <br/>
<a id="pl.43.22"></a><var>43.22</var>authority in a signed record for the account of others; <br/>
<a id="pl.43.23"></a><var>43.23</var>    (9) a transaction in a security, whether or not the security or transaction is otherwise <br/>
<a id="pl.43.24"></a><var>43.24</var>exempt, in exchange for one or more bona fide outstanding securities, claims, or property <br/>
<a id="pl.43.25"></a><var>43.25</var>interests, or partly in such exchange and partly for cash, if the terms and conditions of <br/>
<a id="pl.43.26"></a><var>43.26</var>the issuance and exchange or the delivery and exchange and the fairness of the terms and <br/>
<a id="pl.43.27"></a><var>43.27</var>conditions have been approved by the administrator after a hearing; <br/>
<a id="pl.43.28"></a><var>43.28</var>    (10) a transaction between the issuer or other person on whose behalf the offering is <br/>
<a id="pl.43.29"></a><var>43.29</var>made and an underwriter, or among underwriters; <br/>
<a id="pl.43.30"></a><var>43.30</var>    (11) a transaction in a note, bond, debenture, or other evidence of indebtedness <br/>
<a id="pl.43.31"></a><var>43.31</var>secured by a mortgage or other security agreement if: <br/>
<a id="pl.43.32"></a><var>43.32</var>    (A) the note, bond, debenture, or other evidence of indebtedness is offered and sold <br/>
<a id="pl.43.33"></a><var>43.33</var>with the mortgage or other security agreement as a unit; <br/>
<a id="pl.43.34"></a><var>43.34</var>    (B) a general solicitation or general advertisement of the transaction is not made; and <br/>
<a id="pl.43.35"></a><var>43.35</var>    (C) a commission or other remuneration is not paid or given, directly or indirectly, to <br/>
<a id="pl.43.36"></a><var>43.36</var>a person not registered under this chapter as a broker-dealer or as an agent; <br/>
<a id="pl.44.1"></a><var>44.1</var>    (12) a transaction by an executor, administrator of an estate, sheriff, marshal, <br/>
<a id="pl.44.2"></a><var>44.2</var>receiver, trustee in bankruptcy, guardian, or conservator; <br/>
<a id="pl.44.3"></a><var>44.3</var>    (13) a sale or offer to sell to: <br/>
<a id="pl.44.4"></a><var>44.4</var>    (A) an institutional investor; <br/>
<a id="pl.44.5"></a><var>44.5</var>    (B) an accredited investor; <br/>
<a id="pl.44.6"></a><var>44.6</var>    (C) a federal covered investment adviser; or <br/>
<a id="pl.44.7"></a><var>44.7</var>    (D) any other person exempted by rule adopted or order issued under this chapter; <br/>
<a id="pl.44.8"></a><var>44.8</var>    (14) a sale or an offer to sell securities by an issuer, if the transaction is part of <br/>
<a id="pl.44.9"></a><var>44.9</var>a single issue in which: <br/>
<a id="pl.44.10"></a><var>44.10</var>    (A) not more than 35 purchasers are present in this state during any 12 consecutive <br/>
<a id="pl.44.11"></a><var>44.11</var>months, other than those designated in paragraph (13); <br/>
<a id="pl.44.12"></a><var>44.12</var>    (B) a general solicitation or general advertising is not made in connection with <br/>
<a id="pl.44.13"></a><var>44.13</var>the offer to sell or sale of the securities; <br/>
<a id="pl.44.14"></a><var>44.14</var>    (C) a commission or other remuneration is not paid or given, directly or indirectly, to <br/>
<a id="pl.44.15"></a><var>44.15</var>a person other than a broker-dealer registered under this chapter or an agent registered <br/>
<a id="pl.44.16"></a><var>44.16</var>under this chapter for soliciting a prospective purchaser in this state; and <br/>
<a id="pl.44.17"></a><var>44.17</var>    (D) the issuer reasonably believes that all the purchasers in this state, other than <br/>
<a id="pl.44.18"></a><var>44.18</var>those designated in paragraph (13), are purchasing for investment. <br/>
<a id="pl.44.19"></a><var>44.19</var>Any issuer selling to purchasers in this state in reliance on this clause (14) exemption <br/>
<a id="pl.44.20"></a><var>44.20</var>must provide to the administrator notice of the transaction by filing a statement of issuer <br/>
<a id="pl.44.21"></a><var>44.21</var>form as adopted by rule. Notice must be filed at least ten days in advance of any sale or <br/>
<a id="pl.44.22"></a><var>44.22</var>such shorter period as permitted by the administrator. However, an issuer who makes sales <br/>
<a id="pl.44.23"></a><var>44.23</var>to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not <br/>
<a id="pl.44.24"></a><var>44.24</var>required to provide this notice; <br/>
<a id="pl.44.25"></a><var>44.25</var>    (15) a transaction under an offer to existing security holders of the issuer, including <br/>
<a id="pl.44.26"></a><var>44.26</var>persons that at the date of the transaction are holders of convertible securities, options, <br/>
<a id="pl.44.27"></a><var>44.27</var>or warrants, if a commission or other remuneration, other than a standby commission, is <br/>
<a id="pl.44.28"></a><var>44.28</var>not paid or given, directly or indirectly, for soliciting a security holder in this state. The <br/>
<a id="pl.44.29"></a><var>44.29</var>person making the offer and effecting the transaction must provide to the administrator <br/>
<a id="pl.44.30"></a><var>44.30</var>notice of the transaction by filing a written description of the transaction. Notice must be <br/>
<a id="pl.44.31"></a><var>44.31</var>filed at least ten days in advance of any transaction or such shorter period as permitted by <br/>
<a id="pl.44.32"></a><var>44.32</var>the administrator; <br/>
<a id="pl.44.33"></a><var>44.33</var>    (16) an offer to sell, but not a sale, of a security not exempt from registration under <br/>
<a id="pl.44.34"></a><var>44.34</var>the Securities Act of 1933 if: <br/>
<a id="pl.45.1"></a><var>45.1</var>    (A) a registration or offering statement or similar record as required under the <br/>
<a id="pl.45.2"></a><var>45.2</var>Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance <br/>
<a id="pl.45.3"></a><var>45.3</var>with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and <br/>
<a id="pl.45.4"></a><var>45.4</var>    (B) a stop order of which the offeror is aware has not been issued against the offeror <br/>
<a id="pl.45.5"></a><var>45.5</var>by the administrator or the Securities and Exchange Commission, and an audit, inspection, <br/>
<a id="pl.45.6"></a><var>45.6</var>or proceeding that is public and that may culminate in a stop order is not known by the <br/>
<a id="pl.45.7"></a><var>45.7</var>offeror to be pending; <br/>
<a id="pl.45.8"></a><var>45.8</var>    (17) an offer to sell, but not a sale, of a security exempt from registration under the <br/>
<a id="pl.45.9"></a><var>45.9</var>Securities Act of 1933 if: <br/>
<a id="pl.45.10"></a><var>45.10</var>    (A) a registration statement has been filed under this chapter, but is not effective; <br/>
<a id="pl.45.11"></a><var>45.11</var>    (B) a solicitation of interest is provided in a record to offerees in compliance with a <br/>
<a id="pl.45.12"></a><var>45.12</var>rule adopted by the administrator under this chapter; and <br/>
<a id="pl.45.13"></a><var>45.13</var>    (C) a stop order of which the offeror is aware has not been issued by the administrator <br/>
<a id="pl.45.14"></a><var>45.14</var>under this chapter and an audit, inspection, or proceeding that may culminate in a stop <br/>
<a id="pl.45.15"></a><var>45.15</var>order is not known by the offeror to be pending; <br/>
<a id="pl.45.16"></a><var>45.16</var>    (18) a transaction involving the distribution of the securities of an issuer to the <br/>
<a id="pl.45.17"></a><var>45.17</var>security holders of another person in connection with a merger, consolidation, exchange <br/>
<a id="pl.45.18"></a><var>45.18</var>of securities, sale of assets, or other reorganization to which the issuer, or its parent <br/>
<a id="pl.45.19"></a><var>45.19</var>or subsidiary and the other person, or its parent or subsidiary, are parties. The person <br/>
<a id="pl.45.20"></a><var>45.20</var>distributing the issuer's securities must provide to the administrator notice of the <br/>
<a id="pl.45.21"></a><var>45.21</var>transaction by filing a written description of the transaction along with a consent to service <br/>
<a id="pl.45.22"></a><var>45.22</var>of process complying with section 
         <statute_ref>80A.88</statute_ref>. Notice must be filed at least ten days in <br/>
<a id="pl.45.23"></a><var>45.23</var>advance of any transaction or such shorter period as permitted by the administrator; <br/>
<a id="pl.45.24"></a><var>45.24</var>    (19) a rescission offer, sale, or purchase under section 80A.77;. The person making <br/>
<a id="pl.45.25"></a><var>45.25</var>the rescission offer must provide to the administrator notice of the transaction by filing a <br/>
<a id="pl.45.26"></a><var>45.26</var>written description of the transaction and a copy of the record that must be delivered to the <br/>
<a id="pl.45.27"></a><var>45.27</var>offeree under section 80A.77. Notice must be filed at least ten days in advance of any <br/>
<a id="pl.45.28"></a><var>45.28</var>rescission offer under section 80A.77 or a shorter period as permitted by the administrator; <br/>
<a id="pl.45.29"></a><var>45.29</var>    (20) an offer or sale of a security to a person not a resident of this state and not <br/>
<a id="pl.45.30"></a><var>45.30</var>present in this state if the offer or sale does not constitute a violation of the laws of the <br/>
<a id="pl.45.31"></a><var>45.31</var>state or foreign jurisdiction in which the offeree or purchaser is present and is not part of <br/>
<a id="pl.45.32"></a><var>45.32</var>an unlawful plan or scheme to evade this chapter; <br/>
<a id="pl.45.33"></a><var>45.33</var>    (21) employees' stock purchase, savings, option, profit-sharing, pension, or <br/>
<a id="pl.45.34"></a><var>45.34</var>similar employees' benefit plan, including any securities, plan interests, and guarantees <br/>
<a id="pl.45.35"></a><var>45.35</var>issued under a compensatory benefit plan or compensation contract, contained in a <br/>
<a id="pl.45.36"></a><var>45.36</var>record, established by the issuer, its parents, its majority-owned subsidiaries, or the <br/>
<a id="pl.46.1"></a><var>46.1</var>majority-owned subsidiaries of the issuer's parent for the participation of their employees <br/>
<a id="pl.46.2"></a><var>46.2</var>including offers or sales of such securities to: <br/>
<a id="pl.46.3"></a><var>46.3</var>    (A) directors; general partners; trustees, if the issuer is a business trust; officers; <br/>
<a id="pl.46.4"></a><var>46.4</var>consultants; and advisors; <br/>
<a id="pl.46.5"></a><var>46.5</var>    (B) family members who acquire such securities from those persons through gifts or <br/>
<a id="pl.46.6"></a><var>46.6</var>domestic relations orders; <br/>
<a id="pl.46.7"></a><var>46.7</var>    (C) former employees, directors, general partners, trustees, officers, consultants, and <br/>
<a id="pl.46.8"></a><var>46.8</var>advisors if those individuals were employed by or providing services to the issuer when <br/>
<a id="pl.46.9"></a><var>46.9</var>the securities were offered; and <br/>
<a id="pl.46.10"></a><var>46.10</var>    (D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's <br/>
<a id="pl.46.11"></a><var>46.11</var>subsidiaries or parents, or who derive more than 50 percent of their annual income from <br/>
<a id="pl.46.12"></a><var>46.12</var>those organizations. <br/>
<a id="pl.46.13"></a><var>46.13</var>A person establishing an employee benefit plan under the exemption in this clause <br/>
<a id="pl.46.14"></a><var>46.14</var>(21) must provide to the administrator notice of the transaction by filing a written <br/>
<a id="pl.46.15"></a><var>46.15</var>description of the transaction along with a consent to service of process complying with <br/>
<a id="pl.46.16"></a><var>46.16</var>section 
         <statute_ref>80A.88</statute_ref>. Notice must be filed at least ten days in advance of any transaction or <br/>
<a id="pl.46.17"></a><var>46.17</var>such shorter period as permitted by the administrator; <br/>
<a id="pl.46.18"></a><var>46.18</var>    (22) a transaction involving: <br/>
<a id="pl.46.19"></a><var>46.19</var>    (A) a stock dividend or equivalent equity distribution, whether the corporation or <br/>
<a id="pl.46.20"></a><var>46.20</var>other business organization distributing the dividend or equivalent equity distribution is <br/>
<a id="pl.46.21"></a><var>46.21</var>the issuer or not, if nothing of value is given by stockholders or other equity holders for <br/>
<a id="pl.46.22"></a><var>46.22</var>the dividend or equivalent equity distribution other than the surrender of a right to a cash <br/>
<a id="pl.46.23"></a><var>46.23</var>or property dividend if each stockholder or other equity holder may elect to take the <br/>
<a id="pl.46.24"></a><var>46.24</var>dividend or equivalent equity distribution in cash, property, or stock; <br/>
<a id="pl.46.25"></a><var>46.25</var>    (B) an act incident to a judicially approved reorganization in which a security is <br/>
<a id="pl.46.26"></a><var>46.26</var>issued in exchange for one or more outstanding securities, claims, or property interests, or <br/>
<a id="pl.46.27"></a><var>46.27</var>partly in such exchange and partly for cash; or <br/>
<a id="pl.46.28"></a><var>46.28</var>    (C) the solicitation of tenders of securities by an offeror in a tender offer in <br/>
<a id="pl.46.29"></a><var>46.29</var>compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162); <br/>
<a id="pl.46.30"></a><var>46.30</var>    (23) a nonissuer transaction in an outstanding security by or through a broker-dealer <br/>
<a id="pl.46.31"></a><var>46.31</var>registered or exempt from registration under this chapter, if the issuer is a reporting <br/>
<a id="pl.46.32"></a><var>46.32</var>issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order <br/>
<a id="pl.46.33"></a><var>46.33</var>issued under this chapter; has been subject to continuous reporting requirements in the <br/>
<a id="pl.46.34"></a><var>46.34</var>foreign jurisdiction for not less than 180 days before the transaction; and the security is <br/>
<a id="pl.46.35"></a><var>46.35</var>listed on the foreign jurisdiction's securities exchange that has been designated by this <br/>
<a id="pl.46.36"></a><var>46.36</var>paragraph or by rule adopted or order issued under this chapter, or is a security of the same <br/>
<a id="pl.47.1"></a><var>47.1</var>issuer that is of senior or substantially equal rank to the listed security or is a warrant or <br/>
<a id="pl.47.2"></a><var>47.2</var>right to purchase or subscribe to any of the foregoing.  For purposes of this paragraph, <br/>
<a id="pl.47.3"></a><var>47.3</var>Canada, together with its provinces and territories, is a designated foreign jurisdiction <br/>
<a id="pl.47.4"></a><var>47.4</var>and The Toronto Stock Exchange, Inc., is a designated securities exchange.  After an <br/>
<a id="pl.47.5"></a><var>47.5</var>administrative hearing in compliance with chapter 14, the administrator, by rule adopted <br/>
<a id="pl.47.6"></a><var>47.6</var>or order issued under this chapter, may revoke the designation of a securities exchange <br/>
<a id="pl.47.7"></a><var>47.7</var>under this paragraph, if the administrator finds that revocation is necessary or appropriate <br/>
<a id="pl.47.8"></a><var>47.8</var>in the public interest and for the protection of investors; <br/>
<a id="pl.47.9"></a><var>47.9</var>    (24) any transaction effected by or through a Canadian broker-dealer exempted from <br/>
<a id="pl.47.10"></a><var>47.10</var>broker-dealer registration pursuant to section 80A.56(b)(3); or <br/>
<a id="pl.47.11"></a><var>47.11</var>    (25)(A) the offer and sale by a cooperative organized under chapter 308A, or <br/>
<a id="pl.47.12"></a><var>47.12</var>under the laws of another state, of its securities when the securities are offered and sold <br/>
<a id="pl.47.13"></a><var>47.13</var>only to its members, or when the purchase of the securities is necessary or incidental to <br/>
<a id="pl.47.14"></a><var>47.14</var>establishing membership in the cooperative, or when the securities are issued as patronage <br/>
<a id="pl.47.15"></a><var>47.15</var>dividends. This paragraph applies to a cooperative organized under chapter 308A, or under <br/>
<a id="pl.47.16"></a><var>47.16</var>the laws of another state, only if the cooperative has filed with the administrator a consent <br/>
<a id="pl.47.17"></a><var>47.17</var>to service of process under section 80A.88 and has, not less than ten days before the <br/>
<a id="pl.47.18"></a><var>47.18</var>issuance or delivery, furnished the administrator with a written general description of the <br/>
<a id="pl.47.19"></a><var>47.19</var>transaction and any other information that the administrator requires by rule or otherwise; <br/>
<a id="pl.47.20"></a><var>47.20</var>    (B) the offer and sale by a cooperative organized under chapter 308B of its securities <br/>
<a id="pl.47.21"></a><var>47.21</var>when the securities are offered and sold to its existing members or when the purchase of the <br/>
<a id="pl.47.22"></a><var>47.22</var>securities is necessary or incidental to establishing patron membership in the cooperative, <br/>
<a id="pl.47.23"></a><var>47.23</var>or when such securities are issued as patronage dividends. The administrator has the <br/>
<a id="pl.47.24"></a><var>47.24</var>power to define "patron membership" for purposes of this paragraph. This paragraph <br/>
<a id="pl.47.25"></a><var>47.25</var>applies to securities, other than securities issued as patronage dividends, only when: <br/>
<a id="pl.47.26"></a><var>47.26</var>    (i) the issuer, before the completion of the sale of the securities, provides each <br/>
<a id="pl.47.27"></a><var>47.27</var>offeree or purchaser disclosure materials that, to the extent material to an understanding of <br/>
<a id="pl.47.28"></a><var>47.28</var>the issuer, its business, and the securities being offered, substantially meet the disclosure <br/>
<a id="pl.47.29"></a><var>47.29</var>conditions and limitations found in rule 502(b) of Regulation D promulgated by the <br/>
<a id="pl.47.30"></a><var>47.30</var>Securities and Exchange Commission, Code of Federal Regulations, title 17, section <br/>
<a id="pl.47.31"></a><var>47.31</var>230.502; and <br/>
<a id="pl.47.32"></a><var>47.32</var>    (ii) within 15 days after the completion of the first sale in each offering completed in <br/>
<a id="pl.47.33"></a><var>47.33</var>reliance upon this exemption, the cooperative has filed with the administrator a consent to <br/>
<a id="pl.47.34"></a><var>47.34</var>service of process under section 80A.88 (or has previously filed such a consent), and has <br/>
<a id="pl.47.35"></a><var>47.35</var>furnished the administrator with a written general description of the transaction and any <br/>
<a id="pl.47.36"></a><var>47.36</var>other information that the administrator requires by rule or otherwise; and <br/>
<a id="pl.48.1"></a><var>48.1</var>(C) a cooperative may, at or about the same time as offers or sales are being <br/>
<a id="pl.48.2"></a><var>48.2</var>completed in reliance upon the exemptions from registration found in this subpart and as <br/>
<a id="pl.48.3"></a><var>48.3</var>part of a common plan of financing, offer or sell its securities in reliance upon any other <br/>
<a id="pl.48.4"></a><var>48.4</var>exemption from registration available under this chapter.  The offer or sale of securities in <br/>
<a id="pl.48.5"></a><var>48.5</var>reliance upon the exemptions found in this subpart will not be considered or deemed a part <br/>
<a id="pl.48.6"></a><var>48.6</var>of or be integrated with any offer or sale of securities conducted by the cooperative in <br/>
<a id="pl.48.7"></a><var>48.7</var>reliance upon any other exemption from registration available under this chapter, nor will <br/>
<a id="pl.48.8"></a><var>48.8</var>offers or sales of securities by the cooperative in reliance upon any other exemption from <br/>
<a id="pl.48.9"></a><var>48.9</var>registration available under this chapter be considered or deemed a part of or be integrated <br/>
<a id="pl.48.10"></a><var>48.10</var>with any offer or sale conducted by the cooperative in reliance upon this paragraph. <br/>
<br/>
<a id="bill.0.46.0"></a><a id="pl.48.11"></a><var>48.11</var>    Sec. 46. Minnesota Statutes 2008, section 80A.65, subdivision 6, is amended to read:<br/>
<a id="pl.48.12"></a><var>48.12</var>    Subd. 6. <b>Rescission offer filing fee.</b> The filing of a rescission offer under section <br/>
<a id="pl.48.13"></a><var>48.13</var>80A.77 80A.46(19), shall be accompanied by the fees as calculated in subdivision 1.<br/>
<br/>
<a id="bill.0.47.0"></a><a id="pl.48.14"></a><var>48.14</var>    Sec. 47. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision <br/>
<a id="pl.48.15"></a><var>48.15</var>to read:<br/>
<a id="pl.48.16"></a><var>48.16</var>    Subd. 1a. <b>Brokerage; business entity.</b> "Brokerage" or "business entity" means a <br/>
<a id="pl.48.17"></a><var>48.17</var>corporation, partnership, limited liability company, limited liability partnership, or other <br/>
<a id="pl.48.18"></a><var>48.18</var>business structure that holds a real estate broker license.<br/>
<br/>
<a id="bill.0.48.0"></a><a id="pl.48.19"></a><var>48.19</var>    Sec. 48. Minnesota Statutes 2008, section 82.17, subdivision 15, is amended to read:<br/>
<a id="pl.48.20"></a><var>48.20</var>    Subd. 15. <b>Protective list.</b> "Protective list" means the written list of names and <br/>
<a id="pl.48.21"></a><var>48.21</var>addresses of prospective purchasers buyers with whom a licensee has negotiated the sale <br/>
<a id="pl.48.22"></a><var>48.22</var>or rental of the property or to whom a licensee has exhibited the property before the <br/>
<a id="pl.48.23"></a><var>48.23</var>expiration of the listing agreement. For the purposes of this subdivision, "property" means <br/>
<a id="pl.48.24"></a><var>48.24</var>the property that is the subject of the listing agreement in question.<br/>
<br/>
<a id="bill.0.49.0"></a><a id="pl.48.25"></a><var>48.25</var>    Sec. 49. Minnesota Statutes 2008, section 82.17, is amended by adding a subdivision <br/>
<a id="pl.48.26"></a><var>48.26</var>to read:<br/>
<a id="pl.48.27"></a><var>48.27</var>    Subd. 20a. <b>Responsible person.</b> "Responsible person" means a natural person that <br/>
<a id="pl.48.28"></a><var>48.28</var>is an officer of a corporation, a partner of a partnership, a general partner of a limited <br/>
<a id="pl.48.29"></a><var>48.29</var>liability partnership, or a manager of a limited liability company.<br/>
<br/>
<a id="bill.0.50.0"></a><a id="pl.48.30"></a><var>48.30</var>    Sec. 50. Minnesota Statutes 2008, section 82.19, is amended to read:<br/>
<a id="pl.48.31"></a><var>48.31</var><b>82.19 COMPENSATION.</b><br/>
<a id="pl.49.1"></a><var>49.1</var>    Subdivision 1. <b>Licensee to receive only from broker.</b> A licensee shall not <br/>
<a id="pl.49.2"></a><var>49.2</var>accept a commission, compensation, referral fee, or other valuable consideration for the <br/>
<a id="pl.49.3"></a><var>49.3</var>performance of any acts requiring a real estate license from any person except the real <br/>
<a id="pl.49.4"></a><var>49.4</var>estate broker to whom the licensee is licensed or to whom the licensee was licensed at the <br/>
<a id="pl.49.5"></a><var>49.5</var>time of the transaction.<br/>
<a id="pl.49.6"></a><var>49.6</var>    Subd. 1a. <b>Commission-splitting, rebates, referral fee, and fees.</b> (a) In connection <br/>
<a id="pl.49.7"></a><var>49.7</var>with a real estate or business opportunity transaction, a real estate broker or real estate <br/>
<a id="pl.49.8"></a><var>49.8</var>salesperson shall not offer, pay, or give, and a person shall not accept, any compensation <br/>
<a id="pl.49.9"></a><var>49.9</var>or other thing of value from a real estate broker or real estate salesperson by way of <br/>
<a id="pl.49.10"></a><var>49.10</var>commission-splitting, rebate, referral fees, finder's fees, or otherwise.<br/>
<a id="pl.49.11"></a><var>49.11</var>(b) This subdivision does not apply to transactions:<br/>
<a id="pl.49.12"></a><var>49.12</var>(1) between a licensed real estate broker or salesperson and the parties to the <br/>
<a id="pl.49.13"></a><var>49.13</var>transaction;<br/>
<a id="pl.49.14"></a><var>49.14</var>(2) among persons licensed as provided in this chapter;<br/>
<a id="pl.49.15"></a><var>49.15</var>(3) between a licensed real estate broker or salesperson and persons from other <br/>
<a id="pl.49.16"></a><var>49.16</var>jurisdictions similarly licensed in that jurisdiction;<br/>
<a id="pl.49.17"></a><var>49.17</var>(4) involving timeshare or other recreational lands where the amount offered or paid <br/>
<a id="pl.49.18"></a><var>49.18</var>does not exceed $150, and payment is not conditioned upon any sale but is made merely <br/>
<a id="pl.49.19"></a><var>49.19</var>for providing the referral and the person paying the fee is bound by any representations <br/>
<a id="pl.49.20"></a><var>49.20</var>made by the person receiving the fee; and<br/>
<a id="pl.49.21"></a><var>49.21</var>(5) involving a person who receives a referral fee from a person or an agent of a <br/>
<a id="pl.49.22"></a><var>49.22</var>person licensed under this section, provided that in any 12-month period, no recipient may <br/>
<a id="pl.49.23"></a><var>49.23</var>earn more than the value of one month's rent, that the recipient is a resident of the property <br/>
<a id="pl.49.24"></a><var>49.24</var>or has lived there within 60 days of the payment of the fee, and that the person paying the <br/>
<a id="pl.49.25"></a><var>49.25</var>fee is bound by any representations made by the recipient of the fee.<br/>
<a id="pl.49.26"></a><var>49.26</var>    Subd. 2. <b>Undisclosed compensation.</b> A licensee shall not accept, give, or charge <br/>
<a id="pl.49.27"></a><var>49.27</var>any undisclosed compensation or realize any direct or indirect remuneration that inures to <br/>
<a id="pl.49.28"></a><var>49.28</var>the benefit of the licensee on an expenditure made for a principal.<br/>
<a id="pl.49.29"></a><var>49.29</var>    Subd. 2a. <b>Sharing of compensation with other brokers.</b> The seller may, in <br/>
<a id="pl.49.30"></a><var>49.30</var>the listing agreement, authorize the seller's broker to disburse part of the broker's <br/>
<a id="pl.49.31"></a><var>49.31</var>compensation to other brokers, including the buyer's brokers solely representing the buyer.<br/>
<a id="pl.49.32"></a><var>49.32</var>    Subd. 3. <b>Limitation on broker when transaction not completed.</b> When the owner <br/>
<a id="pl.49.33"></a><var>49.33</var>fails or is unable to consummate a real estate transaction, through no fault of the purchaser, <br/>
<a id="pl.49.34"></a><var>49.34</var>the listing broker may not claim any portion of any trust funds deposited with the broker <br/>
<a id="pl.49.35"></a><var>49.35</var>by the purchaser, absent a separate agreement with the purchaser.<br/>
<a id="pl.50.1"></a><var>50.1</var>    Subd. 3a. <b>Directing payment of compensation.</b> A licensed real estate broker <br/>
<a id="pl.50.2"></a><var>50.2</var>or salesperson may assign or direct that commissions or other compensation earned in <br/>
<a id="pl.50.3"></a><var>50.3</var>connection with a real estate or business opportunity transaction be paid to a corporation, <br/>
<a id="pl.50.4"></a><var>50.4</var>limited liability company, or sole proprietorship of which the licensed real estate broker <br/>
<a id="pl.50.5"></a><var>50.5</var>or salesperson is the sole owner.<br/>
<a id="pl.50.6"></a><var>50.6</var>    Subd. 3b. <b>Closing agent fee.</b> A real estate closing agent may not charge a fee for <br/>
<a id="pl.50.7"></a><var>50.7</var>closing services to a borrower, and a borrower may not be required to pay such a fee at <br/>
<a id="pl.50.8"></a><var>50.8</var>settlement, if the fee was not previously disclosed in writing at least one business day <br/>
<a id="pl.50.9"></a><var>50.9</var>before the settlement. This disclosure requirement is satisfied if a disclosure is made or <br/>
<a id="pl.50.10"></a><var>50.10</var>an estimate given under section 
<statute_ref>507.45</statute_ref>.<br/>
<br/>
<a id="bill.0.51.0"></a><a id="pl.50.11"></a><var>50.11</var>    Sec. 51. Minnesota Statutes 2008, section 82.21, subdivision 2, is amended to read:<br/>
<a id="pl.50.12"></a><var>50.12</var>    Subd. 2. <b>Listing agreements.</b> (a) <b>Requirement.</b> Licensees shall obtain a signed <br/>
<a id="pl.50.13"></a><var>50.13</var>listing agreement or other signed written authorization from the owner of real property or <br/>
<a id="pl.50.14"></a><var>50.14</var>from another person authorized to offer the property for sale or lease before advertising to <br/>
<a id="pl.50.15"></a><var>50.15</var>the general public that the real property is available for sale or lease. <br/>
<a id="pl.50.16"></a><var>50.16</var>For the purposes of this section "advertising" includes placing a sign on the owner's <br/>
<a id="pl.50.17"></a><var>50.17</var>property that indicates that the property is being offered for sale or lease.<br/>
<a id="pl.50.18"></a><var>50.18</var>(b) <b>Contents.</b> All listing agreements must be in writing and must include: <br/>
<a id="pl.50.19"></a><var>50.19</var>(1) a definite expiration date;<br/>
<a id="pl.50.20"></a><var>50.20</var>(2) a description of the real property involved;<br/>
<a id="pl.50.21"></a><var>50.21</var>(3) the list price and any terms required by the seller;<br/>
<a id="pl.50.22"></a><var>50.22</var>(4) the amount of any compensation or commission or the basis for computing <br/>
<a id="pl.50.23"></a><var>50.23</var>the commission;<br/>
<a id="pl.50.24"></a><var>50.24</var>(5) a clear statement explaining the events or conditions that will entitle a broker to <br/>
<a id="pl.50.25"></a><var>50.25</var>a commission;<br/>
<a id="pl.50.26"></a><var>50.26</var>(6) a clear statement explaining if the agreement may be canceled and the terms <br/>
<a id="pl.50.27"></a><var>50.27</var>under which the agreement may be canceled;<br/>
<a id="pl.50.28"></a><var>50.28</var>(6) (7) information regarding an override clause, if applicable, including a statement <br/>
<a id="pl.50.29"></a><var>50.29</var>to the effect that the override clause will not be effective unless the licensee supplies the <br/>
<a id="pl.50.30"></a><var>50.30</var>seller with a protective list within 72 hours after the expiration of the listing agreement;<br/>
<a id="pl.50.31"></a><var>50.31</var>(7) (8) the following notice in not less than ten point boldface type immediately <br/>
<a id="pl.50.32"></a><var>50.32</var>preceding any provision of the listing agreement relating to compensation of the licensee:<br/>
<a id="pl.50.33"></a><var>50.33</var>"NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR <br/>
<a id="pl.50.34"></a><var>50.34</var>MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN <br/>
<a id="pl.50.35"></a><var>50.35</var>EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";<br/>
<a id="pl.51.1"></a><var>51.1</var>(8) (9) for residential property listings, the following "dual agency" disclosure <br/>
<a id="pl.51.2"></a><var>51.2</var>statement:<br/>
<a id="pl.51.3"></a><var>51.3</var>If a buyer represented by broker wishes to buy the seller's property, a dual agency <br/>
<a id="pl.51.4"></a><var>51.4</var>will be created. This means that broker will represent both the seller(s) and the buyer(s), <br/>
<a id="pl.51.5"></a><var>51.5</var>and owe the same duties to the buyer(s) that broker owes to the seller(s). This conflict <br/>
<a id="pl.51.6"></a><var>51.6</var>of interest will prohibit broker from advocating exclusively on the seller's behalf. Dual <br/>
<a id="pl.51.7"></a><var>51.7</var>agency will limit the level of representation broker can provide. If a dual agency should <br/>
<a id="pl.51.8"></a><var>51.8</var>arise, the seller(s) will need to agree that confidential information about price, terms, and <br/>
<a id="pl.51.9"></a><var>51.9</var>motivation will still be kept confidential unless the seller(s) instruct broker in writing to <br/>
<a id="pl.51.10"></a><var>51.10</var>disclose specific information about the seller(s). All other information will be shared. <br/>
<a id="pl.51.11"></a><var>51.11</var>Broker cannot act as a dual agent unless both the seller(s) and the buyer(s) agree to it. By <br/>
<a id="pl.51.12"></a><var>51.12</var>agreeing to a possible dual agency, the seller(s) will be giving up the right to exclusive <br/>
<a id="pl.51.13"></a><var>51.13</var>representation in an in-house transaction. However, if the seller(s) should decide not to <br/>
<a id="pl.51.14"></a><var>51.14</var>agree to a possible dual agency, and the seller(s) want broker to represent the seller(s), the <br/>
<a id="pl.51.15"></a><var>51.15</var>seller(s) may give up the opportunity to sell the property to buyers represented by broker.<br/>

<a id="pl.51.18"></a><var>51.18</var>instructs broker as follows:<br/>
<table>
<col width="50px"/>
<col width="7.5"/>
<col width="2.5"/>
<col width="35"/>
<tr>
<td><a id="pl.51.19"></a><var>51.19</var><br/>
<a id="pl.51.20"></a><var>51.20</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td>Seller(s) will agree to a dual agency representation and will consider <br/>
                  		offers made by buyers represented by broker.<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.21"></a><var>51.21</var><br/>
<a id="pl.51.22"></a><var>51.22</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td>Seller(s) will not agree to a dual agency representation and will not <br/>
                  		consider offers made by buyers represented by broker.<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="25"/>
<col width="5"/>
<col width="5"/>
<col width="20"/>
<tr>
<td><a id="pl.51.23"></a><var>51.23</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td colspan="2"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.51.24"></a><var>51.24</var><br/>
</td>
<td>Seller<br/>
</td>
<td></td>
<td colspan="2">Real Estate Company Name<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.51.25"></a><var>51.25</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td>By:<br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.51.26"></a><var>51.26</var><br/>
</td>
<td>Seller<br/>
</td>
<td></td>
<td></td>
<td>Salesperson<br/>
</td>
</tr>
<tr>
<td><a id="pl.51.27"></a><var>51.27</var><br/>
</td>
<td>Date : <span>
                     							.....
                     						</span>;<br/>
</td>
<td></td>
<td></td>
<td></td>
</tr>
</table><a id="pl.51.28"></a><var>51.28</var>(9) (10) a notice requiring the seller to indicate in writing whether it is acceptable to <br/>
<a id="pl.51.29"></a><var>51.29</var>the seller to have the licensee arrange for closing services or whether the seller wishes to <br/>
<a id="pl.51.30"></a><var>51.30</var>arrange for others to conduct the closing; and<br/>
<a id="pl.51.31"></a><var>51.31</var>(10) (11) for residential listings, a notice stating that after the expiration of the <br/>
<a id="pl.51.32"></a><var>51.32</var>listing agreement, the seller will not be obligated to pay the licensee a fee or commission <br/>
<a id="pl.51.33"></a><var>51.33</var>if the seller has executed another valid listing agreement pursuant to which the seller is <br/>
<a id="pl.51.34"></a><var>51.34</var>obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of <br/>
<a id="pl.51.35"></a><var>51.35</var>the real property in question. This notice may be used in the listing agreement for any <br/>
<a id="pl.51.36"></a><var>51.36</var>other type of real estate.<br/>
<a id="pl.52.1"></a><var>52.1</var>(c) <b>Prohibited provisions.</b> Except as otherwise provided in paragraph (d), clause <br/>
<a id="pl.52.2"></a><var>52.2</var>(2), licensees shall not include in a listing agreement a holdover clause, automatic <br/>
<a id="pl.52.3"></a><var>52.3</var>extension, or any similar provision, or an override clause the length of which is more than <br/>
<a id="pl.52.4"></a><var>52.4</var>six months after the expiration of the listing agreement.<br/>
<a id="pl.52.5"></a><var>52.5</var>(d) <b>Override clauses.</b> (1) Licensees shall not seek to enforce an override clause <br/>
<a id="pl.52.6"></a><var>52.6</var>unless a protective list has been furnished to the seller within 72 hours after the expiration <br/>
<a id="pl.52.7"></a><var>52.7</var>of the listing agreement.<br/>
<a id="pl.52.8"></a><var>52.8</var>(2) A listing agreement may contain an override clause of up to two years in length <br/>
<a id="pl.52.9"></a><var>52.9</var>when used in conjunction with the purchase or sale of a business. The length of the <br/>
<a id="pl.52.10"></a><var>52.10</var>override clause must be negotiable between the licensee and the seller of the business. The <br/>
<a id="pl.52.11"></a><var>52.11</var>protective list provided in connection with the override clause must include the written <br/>
<a id="pl.52.12"></a><var>52.12</var>acknowledgment of each party named on the protective list, that the business which is the <br/>
<a id="pl.52.13"></a><var>52.13</var>subject of the listing agreement was presented to that party by the licensee.<br/>
<a id="pl.52.14"></a><var>52.14</var>(e) <b>Protective lists.</b> A broker or salesperson has the burden of demonstrating that <br/>
<a id="pl.52.15"></a><var>52.15</var>each person on the protective list has, during the period of the listing agreement, either <br/>
<a id="pl.52.16"></a><var>52.16</var>made an affirmative showing of interest in the property by responding to an advertisement <br/>
<a id="pl.52.17"></a><var>52.17</var>or by contacting the broker or salesperson involved or has been physically shown the <br/>
<a id="pl.52.18"></a><var>52.18</var>property by the broker or salesperson. For the purpose of this section, the mere mailing or <br/>
<a id="pl.52.19"></a><var>52.19</var>other distribution by a licensee of literature setting forth information about the property in <br/>
<a id="pl.52.20"></a><var>52.20</var>question does not, of itself, constitute an affirmative showing of interest in the property on <br/>
<a id="pl.52.21"></a><var>52.21</var>the part of a subsequent purchaser.<br/>
<a id="pl.52.22"></a><var>52.22</var>For listings of nonresidential real property which do not contain the notice described <br/>
<a id="pl.52.23"></a><var>52.23</var>in paragraph (b), clause (10) (11), the protective list must contain the following notice in <br/>
<a id="pl.52.24"></a><var>52.24</var>boldface type:<br/>
<a id="pl.52.25"></a><var>52.25</var>"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE <br/>
<a id="pl.52.26"></a><var>52.26</var>PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME <br/>
<a id="pl.52.27"></a><var>52.27</var>APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS <br/>
<a id="pl.52.28"></a><var>52.28</var>TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK <br/>
<a id="pl.52.29"></a><var>52.29</var>COMPETENT ADVICE."<br/>
<br/>
<a id="bill.0.52.0"></a><a id="pl.52.30"></a><var>52.30</var>    Sec. 52. Minnesota Statutes 2008, section 82.24, subdivision 3, is amended to read:<br/>
<a id="pl.52.31"></a><var>52.31</var>    Subd. 3. <b>Broker payment consolidation.</b> For all license renewal fees, recovery <br/>
<a id="pl.52.32"></a><var>52.32</var>fund renewal fees, and recovery fund assessments pursuant to this section and section <br/>
<statute_ref><a id="pl.52.33"></a><var>52.33</var>82.43
         </statute_ref>, the broker must remit the fees or assessments for the company, broker, and all <br/>
<a id="pl.52.34"></a><var>52.34</var>salespersons licensed to the broker, in the form of a single check payment.  <br/>
<br/>
<a id="bill.0.53.0"></a><a id="pl.53.1"></a><var>53.1</var>    Sec. 53. Minnesota Statutes 2008, section 82.29, subdivision 4, is amended to read:<br/>
<a id="pl.53.2"></a><var>53.2</var>    Subd. 4. <b>Broker's examination.</b> (a) The examination for a real estate broker's <br/>
<a id="pl.53.3"></a><var>53.3</var>license shall be more exacting than that for a real estate salesperson, and shall require a <br/>
<a id="pl.53.4"></a><var>53.4</var>higher degree of knowledge of the fundamentals of real estate practice and law.<br/>
<a id="pl.53.5"></a><var>53.5</var>(b) Every application for a broker's examination shall be accompanied by proof that <br/>
<a id="pl.53.6"></a><var>53.6</var>the applicant has had a minimum of two years of actual experience within the previous <br/>
<a id="pl.53.7"></a><var>53.7</var>five-year period prior to application as a licensed real estate salesperson in this or in <br/>
<a id="pl.53.8"></a><var>53.8</var>another state having comparable requirements or is, in the opinion of the commissioner, <br/>
<a id="pl.53.9"></a><var>53.9</var>otherwise or similarly qualified by reason of education or practical experience. The <br/>
<a id="pl.53.10"></a><var>53.10</var>applicant shall have completed educational requirements in accordance with subdivision 8. <br/>
<a id="pl.53.11"></a><var>53.11</var>(c) An applicant for a limited broker's license pursuant to section 
         <statute_ref>82.34, subdivision <br/>
<a id="pl.53.12"></a><var>53.12</var>13
         </statute_ref>, shall not be required to have a minimum of two years of actual experience as a real <br/>
<a id="pl.53.13"></a><var>53.13</var>estate person in order to obtain a limited broker's license to act as principal only. <br/>
<br/>
<a id="bill.0.54.0"></a><a id="pl.53.14"></a><var>53.14</var>    Sec. 54. Minnesota Statutes 2008, section 82.29, subdivision 5, is amended to read:<br/>
<a id="pl.53.15"></a><var>53.15</var>    Subd. 5. <b>Waivers.</b> The commissioner may waive grant a waiver of the real estate <br/>
<a id="pl.53.16"></a><var>53.16</var>licensing experience requirement for the broker's examination to a qualified applicant for <br/>
<a id="pl.53.17"></a><var>53.17</var>a waiver.<br/>
<a id="pl.53.18"></a><var>53.18</var>(a) An A qualified applicant for a waiver shall provide evidence of is an individual <br/>
<a id="pl.53.19"></a><var>53.19</var>who:<br/>
<a id="pl.53.20"></a><var>53.20</var>(1) successful completion of a minimum of 90 quarter credits or 270 classroom <br/>
<a id="pl.53.21"></a><var>53.21</var>hours of real estate-related studies has a degree in real estate from an accredited college <br/>
<a id="pl.53.22"></a><var>53.22</var>or university;<br/>
<a id="pl.53.23"></a><var>53.23</var>(2) a minimum of five consecutive years of practical experience in real estate-related <br/>
<a id="pl.53.24"></a><var>53.24</var>areas is a licensed practicing attorney whose practice involves real estate law; or<br/>
<a id="pl.53.25"></a><var>53.25</var>(3) successful completion of 30 credits or 90 classroom hours and three consecutive <br/>
<a id="pl.53.26"></a><var>53.26</var>years of practical experience in real estate-related areas is a public officer whose official <br/>
<a id="pl.53.27"></a><var>53.27</var>duties involve real estate law or real estate transactions.<br/>
<a id="pl.53.28"></a><var>53.28</var>(b) A request for a waiver shall be submitted to the commissioner in writing on a <br/>
<a id="pl.53.29"></a><var>53.29</var>form prescribed by the commissioner and be accompanied by documents necessary to <br/>
<a id="pl.53.30"></a><var>53.30</var>evidence qualification as set forth in paragraph (a).<br/>
<a id="pl.53.31"></a><var>53.31</var>(c) The waiver will lapse if the applicant fails to successfully complete the broker's <br/>
<a id="pl.53.32"></a><var>53.32</var>examination within one year from the date of the granting of the waiver.<br/>
<br/>
<a id="bill.0.55.0"></a><a id="pl.53.33"></a><var>53.33</var>    Sec. 55. Minnesota Statutes 2008, section 82.29, subdivision 8, is amended to read:<br/>
<a id="pl.54.1"></a><var>54.1</var>    Subd. 8. <b>Instruction; new licenses.</b> (a) Every An applicant for a salesperson's <br/>
<a id="pl.54.2"></a><var>54.2</var>license shall be required to successfully complete a course of study in the real estate field <br/>
<a id="pl.54.3"></a><var>54.3</var>consisting of 30 hours of instruction approved by the commissioner before taking the <br/>
<a id="pl.54.4"></a><var>54.4</var>examination specified in subdivision 1. Every An applicant for a salesperson's license <br/>
<a id="pl.54.5"></a><var>54.5</var>shall be required to successfully complete an additional course of study in the real estate <br/>
<a id="pl.54.6"></a><var>54.6</var>field consisting of 60 hours of instruction approved by the commissioner, of which three <br/>
<a id="pl.54.7"></a><var>54.7</var>hours shall consist of training in state and federal fair housing laws, regulations, and <br/>
<a id="pl.54.8"></a><var>54.8</var>rules, and of which two hours must consist of training in laws and regulations on agency <br/>
<a id="pl.54.9"></a><var>54.9</var>representation and disclosure, before filing an application for the license. This subdivision <br/>
<a id="pl.54.10"></a><var>54.10</var>does not apply to salespeople licensed in Minnesota before July 1, 1969.<br/>
<a id="pl.54.11"></a><var>54.11</var>(b) An applicant for a broker's license must successfully complete a course of study <br/>
<a id="pl.54.12"></a><var>54.12</var>in the real estate field consisting of 30 hours of instruction approved by the commissioner, <br/>
<a id="pl.54.13"></a><var>54.13</var>of which three hours shall consist of training in state and federal fair housing laws, <br/>
<a id="pl.54.14"></a><var>54.14</var>regulations, and rules. The course must have been completed within 12 months prior to <br/>
<a id="pl.54.15"></a><var>54.15</var>the date of application for the broker's license.<br/>
<a id="pl.54.16"></a><var>54.16</var>(c) An applicant for a real estate closing agent's license must successfully complete <br/>
<a id="pl.54.17"></a><var>54.17</var>a course of study relating to closing services consisting of eight hours of instruction <br/>
<a id="pl.54.18"></a><var>54.18</var>approved by the commissioner.<br/>
<br/>
<a id="bill.0.56.0"></a><a id="pl.54.19"></a><var>54.19</var>    Sec. 56. Minnesota Statutes 2008, section 82.31, subdivision 1, is amended to read:<br/>
<a id="pl.54.20"></a><var>54.20</var>    Subdivision 1. <b>Qualification of applicants.</b> Every An applicant for a real estate <br/>
<a id="pl.54.21"></a><var>54.21</var>broker, or real estate salesperson, or real estate closing agent license shall be at least 18 <br/>
<a id="pl.54.22"></a><var>54.22</var>years of age at the time of making application for said license.<br/>
<br/>
<a id="bill.0.57.0"></a><a id="pl.54.23"></a><var>54.23</var>    Sec. 57. Minnesota Statutes 2008, section 82.31, subdivision 2, is amended to read:<br/>
<a id="pl.54.24"></a><var>54.24</var>    Subd. 2. <b>Application for license; contents.</b> (a) Every An applicant for a license <br/>
<a id="pl.54.25"></a><var>54.25</var>as a real estate broker, or real estate salesperson, or closing agent shall make an <br/>
<a id="pl.54.26"></a><var>54.26</var>application in writing upon forms prepared and furnished the format prescribed by the <br/>
<a id="pl.54.27"></a><var>54.27</var>commissioner. Each The application shall be signed and sworn to by the applicant and <br/>
<a id="pl.54.28"></a><var>54.28</var>shall be accompanied by the license fee required by this chapter.<br/>
<a id="pl.54.29"></a><var>54.29</var>(b) Each application for a real estate broker license, or real estate salesperson <br/>
<a id="pl.54.30"></a><var>54.30</var>license, or real estate closing agent license shall contain such information as required <br/>
<a id="pl.54.31"></a><var>54.31</var>by the commissioner consistent with the administration of the provisions and purposes <br/>
<a id="pl.54.32"></a><var>54.32</var>of this chapter.<br/>
<a id="pl.55.1"></a><var>55.1</var>(c) Each The application for a real estate salesperson license shall give the applicant's <br/>
<a id="pl.55.2"></a><var>55.2</var>legal name, age, residence address, and the name and place of business of the real estate <br/>
<a id="pl.55.3"></a><var>55.3</var>broker on whose behalf the salesperson is to be acting.<br/>
<a id="pl.55.4"></a><var>55.4</var>(d) Each application for a real estate closing agent license shall give the applicant's <br/>
<a id="pl.55.5"></a><var>55.5</var>name, age, residence address, and the name and place of business of the closing agent.<br/>
<a id="pl.55.6"></a><var>55.6</var>(e) (d) The commissioner may require such further information as the commissioner <br/>
<a id="pl.55.7"></a><var>55.7</var>deems appropriate to administer the provisions and further the purposes of this chapter.<br/>
<a id="pl.55.8"></a><var>55.8</var>(f) Applicants (e) An applicant for a real estate salesperson license shall submit <br/>
<a id="pl.55.9"></a><var>55.9</var>to the commissioner, along with the application for licensure, a copy of the course <br/>
<a id="pl.55.10"></a><var>55.10</var>completion certificate for courses I, II, and III and passing examination results.<br/>
<br/>
<a id="bill.0.58.0"></a><a id="pl.55.11"></a><var>55.11</var>    Sec. 58. Minnesota Statutes 2009 Supplement, section 82.31, subdivision 4, is <br/>
<a id="pl.55.12"></a><var>55.12</var>amended to read:<br/>
<a id="pl.55.13"></a><var>55.13</var>    Subd. 4. <b>Corporate and partnership</b><b> Business entity; brokerage</b><b> licenses.</b><br/>
<a id="pl.55.14"></a><var>55.14</var>(a) A corporation business entity applying for a license shall have at least one officer <br/>
<a id="pl.55.15"></a><var>55.15</var>responsible person individually licensed to act as broker for the corporation brokerage. <br/>
<a id="pl.55.16"></a><var>55.16</var>The corporation business entity broker's license shall extend no authority to act as broker <br/>
<a id="pl.55.17"></a><var>55.17</var>to any person other than the corporate business entity. Each officer responsible person <br/>
<a id="pl.55.18"></a><var>55.18</var>who intends to act as a broker shall obtain a license.<br/>
<a id="pl.55.19"></a><var>55.19</var>(b) A partnership business entity applying for a license shall have at least one partner <br/>
<a id="pl.55.20"></a><var>55.20</var>responsible person individually licensed to act as broker for the partnership business entity. <br/>
<a id="pl.55.21"></a><var>55.21</var>Each partner responsible person who intends to act as a broker shall obtain a license.<br/>
<a id="pl.55.22"></a><var>55.22</var>(c) Applications An application for a business entity license made by a corporation <br/>
<a id="pl.55.23"></a><var>55.23</var>shall be verified by the president and one other officer. Applications made by a partnership <br/>
<a id="pl.55.24"></a><var>55.24</var>shall be verified by at least two partners responsible persons for the business entity.<br/>
<a id="pl.55.25"></a><var>55.25</var>(d) Any partner or officer A responsible person who ceases to act as broker for <br/>
<a id="pl.55.26"></a><var>55.26</var>a partnership or corporation business entity shall notify the commissioner upon said <br/>
<a id="pl.55.27"></a><var>55.27</var>termination. The individual licenses of all salespersons acting on behalf of a corporation <br/>
<a id="pl.55.28"></a><var>55.28</var>or partnership, brokerage are automatically ineffective upon the revocation or suspension <br/>
<a id="pl.55.29"></a><var>55.29</var>of the license of the partnership or corporation brokerage. The commissioner may suspend <br/>
<a id="pl.55.30"></a><var>55.30</var>or revoke the license of an officer or partner a responsible person licensee without <br/>
<a id="pl.55.31"></a><var>55.31</var>suspending or revoking the license of the corporation or partnership business entity.<br/>
<a id="pl.55.32"></a><var>55.32</var>(e) The application of all officers responsible persons of a corporation or partners <br/>
<a id="pl.55.33"></a><var>55.33</var>in a partnership business entity who intend to act as a broker brokers on behalf of a <br/>
<a id="pl.55.34"></a><var>55.34</var>corporation or partnership business entity shall accompany the initial license application <br/>
<a id="pl.55.35"></a><var>55.35</var>of the corporation or partnership business entity. Officers or partners Responsible persons <br/>
<a id="pl.56.1"></a><var>56.1</var>intending to act as brokers subsequent to the licensing of the corporation or partnership <br/>
<a id="pl.56.2"></a><var>56.2</var>business entity shall procure an individual real estate broker's license prior to acting in the <br/>
<a id="pl.56.3"></a><var>56.3</var>capacity of a broker. No corporate officer, or partner, responsible person who maintains a <br/>
<a id="pl.56.4"></a><var>56.4</var>salesperson's license may exercise any authority over any trust account administered by <br/>
<a id="pl.56.5"></a><var>56.5</var>the broker nor may they be vested with any supervisory authority over the broker.<br/>
<a id="pl.56.6"></a><var>56.6</var>(f) The corporation or partnership business entity applicant shall make available <br/>
<a id="pl.56.7"></a><var>56.7</var>upon request, such records and data required by the commissioner for enforcement <br/>
<a id="pl.56.8"></a><var>56.8</var>of this chapter.<br/>
<a id="pl.56.9"></a><var>56.9</var>(g) The commissioner may require further information, as the commissioner deems <br/>
<a id="pl.56.10"></a><var>56.10</var>appropriate, to administer the provisions and further the purposes of this chapter.<br/>
<br/>
<a id="bill.0.59.0"></a><a id="pl.56.11"></a><var>56.11</var>    Sec. 59. Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:<br/>
<a id="pl.56.12"></a><var>56.12</var><b>82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.</b><br/>
<a id="pl.56.13"></a><var>56.13</var>(a) All real estate salespersons and all real estate brokers shall be required to <br/>
<a id="pl.56.14"></a><var>56.14</var>successfully complete 30 hours of real estate continuing education, either as a student or <br/>
<a id="pl.56.15"></a><var>56.15</var>a lecturer, in courses of study approved by the commissioner, during the initial license <br/>
<a id="pl.56.16"></a><var>56.16</var>period and during each succeeding 24-month license period. At least 15 of the 30 credit <br/>
<a id="pl.56.17"></a><var>56.17</var>hours must be completed during the first 12 months of the 24-month licensing period. <br/>
<a id="pl.56.18"></a><var>56.18</var>Licensees may not claim credit for continuing education not actually completed as of the <br/>
<a id="pl.56.19"></a><var>56.19</var>date their report of continuing education compliance is filed.<br/>
<a id="pl.56.20"></a><var>56.20</var>(b) The commissioner may adopt rules defining the standards for course and <br/>
<a id="pl.56.21"></a><var>56.21</var>instructor approval, and may adopt rules for the proper administration of prelicense <br/>
<a id="pl.56.22"></a><var>56.22</var>instruction as required under section 
         <statute_ref>82.29, subdivision 8</statute_ref>, and continuing education as <br/>
<a id="pl.56.23"></a><var>56.23</var>required under this section and sections 
         <statute_ref>82.29</statute_ref>; 
         <statute_ref>82.31, subdivisions subdivision 5 and 6</statute_ref>; <br/>
<statute_ref><a id="pl.56.24"></a><var>56.24</var>82.33, subdivisions 1 and 4
         </statute_ref> to 6; and 
         <statute_ref>82.44</statute_ref>. The commissioner may not approve a course <br/>
<a id="pl.56.25"></a><var>56.25</var>which can be completed by the student at home or outside the classroom without the <br/>
<a id="pl.56.26"></a><var>56.26</var>supervision of an instructor except accredited courses using new delivery technology, <br/>
<a id="pl.56.27"></a><var>56.27</var>including interactive technology, and the Internet. The commissioner may approve <br/>
<a id="pl.56.28"></a><var>56.28</var>courses of study in the real estate field offered in educational institutions of higher learning <br/>
<a id="pl.56.29"></a><var>56.29</var>in this state or courses of study in the real estate field developed by and offered under <br/>
<a id="pl.56.30"></a><var>56.30</var>the auspices of the National Association of Realtors, its affiliates, or private real estate <br/>
<a id="pl.56.31"></a><var>56.31</var>schools. Courses in motivation, salesmanship, psychology, or time management shall not <br/>
<a id="pl.56.32"></a><var>56.32</var>be approved by the commissioner for continuing education credit. The commissioner may <br/>
<a id="pl.56.33"></a><var>56.33</var>approve courses in any other subjects, including, but not limited to, communication, <br/>
<a id="pl.56.34"></a><var>56.34</var>marketing, negotiation, and technology for continuing education credit. <br/>
<a id="pl.57.1"></a><var>57.1</var>(c) As part of the continuing education requirements of this section and sections <br/>
<statute_ref><a id="pl.57.2"></a><var>57.2</var>82.29
         </statute_ref>; 
         <statute_ref>82.31, subdivisions 5 and 6</statute_ref>; 
         <statute_ref>82.33, subdivisions 1 and 4</statute_ref> to 6; and 
         <statute_ref>82.44</statute_ref>, the <br/>
<a id="pl.57.3"></a><var>57.3</var>commissioner shall require that all real estate brokers and salespersons receive: <br/>
<a id="pl.57.4"></a><var>57.4</var>(1) at least one hour of training during each license period in courses in laws or <br/>
<a id="pl.57.5"></a><var>57.5</var>regulations on agency representation and disclosure; and<br/>
<a id="pl.57.6"></a><var>57.6</var>(2) at least one hour of training during each license period in courses in state and <br/>
<a id="pl.57.7"></a><var>57.7</var>federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses <br/>
<a id="pl.57.8"></a><var>57.8</var>designed to help licensees to meet the housing needs of immigrant and other underserved <br/>
<a id="pl.57.9"></a><var>57.9</var>populations.<br/>
<a id="pl.57.10"></a><var>57.10</var>Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers <br/>
<a id="pl.57.11"></a><var>57.11</var>engaged solely in the commercial real estate business who file with the commissioner <br/>
<a id="pl.57.12"></a><var>57.12</var>a verification of this status along with the continuing education report required under <br/>
<a id="pl.57.13"></a><var>57.13</var>paragraph (a).<br/>
<a id="pl.57.14"></a><var>57.14</var>(d) The commissioner is authorized to establish a procedure for renewal of course <br/>
<a id="pl.57.15"></a><var>57.15</var>accreditation.<br/>
<a id="pl.57.16"></a><var>57.16</var>(e) Approved continuing education courses may be sponsored or offered by a broker <br/>
<a id="pl.57.17"></a><var>57.17</var>of a real estate company and may be held on the premises of a company licensed under <br/>
<a id="pl.57.18"></a><var>57.18</var>this chapter. All continuing education course offerings must be open to any interested <br/>
<a id="pl.57.19"></a><var>57.19</var>individuals. Access may be restricted by the education provider based on class size <br/>
<a id="pl.57.20"></a><var>57.20</var>only. Courses must not be approved if attendance is restricted to any particular group of <br/>
<a id="pl.57.21"></a><var>57.21</var>people. A broker must comply with all continuing education rules prescribed by the <br/>
<a id="pl.57.22"></a><var>57.22</var>commissioner. The commissioner shall not approve any prelicense instruction courses <br/>
<a id="pl.57.23"></a><var>57.23</var>offered by, sponsored by, or affiliated with any person or company licensed to engage in <br/>
<a id="pl.57.24"></a><var>57.24</var>the real estate business.<br/>
<a id="pl.57.25"></a><var>57.25</var>(f) Credit may not be earned if the licensee has previously obtained credit for the <br/>
<a id="pl.57.26"></a><var>57.26</var>same course as either a student or instructor during the same licensing period.<br/>
<a id="pl.57.27"></a><var>57.27</var>(g) The real estate education course completion certificate must be in the form set <br/>
<a id="pl.57.28"></a><var>57.28</var>forth by the commissioner. Students are responsible for maintaining copies of course <br/>
<a id="pl.57.29"></a><var>57.29</var>completion certificates.<br/>
<a id="pl.57.30"></a><var>57.30</var>(h) An approved prelicense 30-hour broker course may be used for continuing <br/>
<a id="pl.57.31"></a><var>57.31</var>education credit by a real estate salesperson or broker if the course is completed during <br/>
<a id="pl.57.32"></a><var>57.32</var>the appropriate licensing period.<br/>
<br/>
<a id="bill.0.60.0"></a><a id="pl.57.33"></a><var>57.33</var>    Sec. 60. Minnesota Statutes 2008, section 82.33, subdivision 1, is amended to read:<br/>
<a id="pl.57.34"></a><var>57.34</var>    Subdivision 1. <b>Duration.</b> No The renewal of a salesperson's license shall be is not <br/>
<a id="pl.57.35"></a><var>57.35</var>effective beyond a date two years after the granting of such the salesperson's license unless <br/>
<a id="pl.58.1"></a><var>58.1</var>the salesperson has furnished evidence of compliance with section 
         <statute_ref>82.29, subdivision 8</statute_ref>. <br/>
<a id="pl.58.2"></a><var>58.2</var>The commissioner shall cancel the license of any a salesperson who fails to comply with <br/>
<a id="pl.58.3"></a><var>58.3</var>section 
         <statute_ref>82.29, subdivision 8</statute_ref>. This subdivision shall not apply to salespeople licensed in <br/>
<a id="pl.58.4"></a><var>58.4</var>Minnesota prior to July 1, 1969. <br/>
<br/>
<a id="bill.0.61.0"></a><a id="pl.58.5"></a><var>58.5</var>    Sec. 61. Minnesota Statutes 2008, section 82.33, is amended by adding a subdivision <br/>
<a id="pl.58.6"></a><var>58.6</var>to read:<br/>
<a id="pl.58.7"></a><var>58.7</var>    Subd. 1a. <b>Broker's responsibility.</b> (a) A broker shall renew the license of each <br/>
<a id="pl.58.8"></a><var>58.8</var>eligible salesperson who is and will continue to be associated with the broker. For <br/>
<a id="pl.58.9"></a><var>58.9</var>the purposes of this subdivision, an eligible salesperson is one who has demonstrated <br/>
<a id="pl.58.10"></a><var>58.10</var>compliance with all renewal requirements before June 15 of the renewal year.<br/>
<a id="pl.58.11"></a><var>58.11</var>(b) When a broker does not intend to renew the license of an eligible salesperson <br/>
<a id="pl.58.12"></a><var>58.12</var>who is associated with the broker, the broker must notify the salesperson in writing 30 <br/>
<a id="pl.58.13"></a><var>58.13</var>days before June 15 of the renewal year.<br/>
<a id="pl.58.14"></a><var>58.14</var>(c) When the broker responsible for the salesperson's license renewal does not renew <br/>
<a id="pl.58.15"></a><var>58.15</var>an eligible salesperson's license before the renewal deadline, the broker shall pay on the <br/>
<a id="pl.58.16"></a><var>58.16</var>salesperson's behalf any additional higher license fees that result.<br/>
<br/>
<a id="bill.0.62.0"></a><a id="pl.58.17"></a><var>58.17</var>    Sec. 62. Minnesota Statutes 2008, section 82.33, subdivision 2, is amended to read:<br/>
<a id="pl.58.18"></a><var>58.18</var>    Subd. 2. <b>Timely renewals.</b> Persons A person whose applications have application <br/>
<a id="pl.58.19"></a><var>58.19</var>for a license renewal has not been properly and timely filed and who have has not received <br/>
<a id="pl.58.20"></a><var>58.20</var>notice of denial approval of renewal are deemed to have been approved for renewal and <br/>
<a id="pl.58.21"></a><var>58.21</var>may not continue to transact business either as a real estate broker, salesperson, or closing <br/>
<a id="pl.58.22"></a><var>58.22</var>agent whether or not the renewed license has been received on or before July 1 after June <br/>
<a id="pl.58.23"></a><var>58.23</var>30 of the renewal year until approval of renewal is received. Application for renewal of a <br/>
<a id="pl.58.24"></a><var>58.24</var>license shall be deemed to have been is timely filed if received by the commissioner by, or <br/>
<a id="pl.58.25"></a><var>58.25</var>mailed with proper postage and postmarked by,: <br/>
<a id="pl.58.26"></a><var>58.26</var>(1) all requirements for renewal, including continuing education requirements, <br/>
<a id="pl.58.27"></a><var>58.27</var>have been completed by June 15 of the renewal year. Applications for renewal shall be <br/>
<a id="pl.58.28"></a><var>58.28</var>deemed properly filed if made; and <br/>
<a id="pl.58.29"></a><var>58.29</var>(2) the application is submitted before the renewal deadline in the manner <br/>
<a id="pl.58.30"></a><var>58.30</var>prescribed by the commissioner upon forms duly executed and sworn to, accompanied <br/>
<a id="pl.58.31"></a><var>58.31</var>by fees prescribed by this chapter, and contain containing any information which the <br/>
<a id="pl.58.32"></a><var>58.32</var>commissioner may require requires.<br/>
<br/>
<a id="bill.0.63.0"></a><a id="pl.58.33"></a><var>58.33</var>    Sec. 63. Minnesota Statutes 2008, section 82.34, subdivision 1, is amended to read:<br/>
<a id="pl.59.1"></a><var>59.1</var>    Subdivision 1. <b>Generally.</b> (a) The commissioner shall issue a license as a real estate <br/>
<a id="pl.59.2"></a><var>59.2</var>broker, or real estate salesperson, or closing agent to any person who qualifies for such <br/>
<a id="pl.59.3"></a><var>59.3</var>the license under the terms of this chapter.<br/>
<a id="pl.59.4"></a><var>59.4</var>(b) The commissioner is authorized to establish by rule a special license for real <br/>
<a id="pl.59.5"></a><var>59.5</var>estate brokers and real estate salespeople engaged solely in the rental or management of <br/>
<a id="pl.59.6"></a><var>59.6</var>an interest or estate in real estate, to prescribe qualifications for the license, and to issue <br/>
<a id="pl.59.7"></a><var>59.7</var>the license consistent with the terms of this chapter. This clause shall not be construed to <br/>
<a id="pl.59.8"></a><var>59.8</var>require those owners or managers or their agents or employees who are excluded by section <br/>
<statute_ref><a id="pl.59.9"></a><var>59.9</var>82.23
         </statute_ref>, clause (d), from the definition of real estate broker, to obtain the special license.  <br/>
<br/>
<a id="bill.0.64.0"></a><a id="pl.59.10"></a><var>59.10</var>    Sec. 64. Minnesota Statutes 2008, section 82.34, subdivision 2, is amended to read:<br/>
<a id="pl.59.11"></a><var>59.11</var>    Subd. 2. <b>Additional broker's license.</b> An individual who holds a broker's license <br/>
<a id="pl.59.12"></a><var>59.12</var>in his or her the broker's own name or for or on behalf of a corporation or partnership <br/>
<a id="pl.59.13"></a><var>59.13</var>business entity must be issued an additional broker's license only upon demonstrating: <br/>
<a id="pl.59.14"></a><var>59.14</var>(1) that the additional license is necessary in order to serve a legitimate business <br/>
<a id="pl.59.15"></a><var>59.15</var>purpose; <br/>
<a id="pl.59.16"></a><var>59.16</var>(2) that the broker will be capable of supervising all salespersons over whom he or <br/>
<a id="pl.59.17"></a><var>59.17</var>she the broker will have supervisory responsibility or, in the alternative, that the broker <br/>
<a id="pl.59.18"></a><var>59.18</var>will have no supervisory responsibilities under the additional license; and <br/>
<a id="pl.59.19"></a><var>59.19</var>(3) that the broker: <br/>
<a id="pl.59.20"></a><var>59.20</var>(i) has a substantial at least 51 percent ownership interest in each corporation or <br/>
<a id="pl.59.21"></a><var>59.21</var>partnership business entity for or on whose behalf he or she the broker holds or will <br/>
<a id="pl.59.22"></a><var>59.22</var>hold a broker's license.; or<br/>
<a id="pl.59.23"></a><var>59.23</var>(ii) is an elected or appointed officer, signing partner, or managing member of both <br/>
<a id="pl.59.24"></a><var>59.24</var>the business entity for which or on whose behalf the broker already holds a license, and <br/>
<a id="pl.59.25"></a><var>59.25</var>an affiliated business entity for which or on whose behalf the broker is applying for an <br/>
<a id="pl.59.26"></a><var>59.26</var>additional license.<br/>
<a id="pl.59.27"></a><var>59.27</var>The requirement of a substantial ownership interest does not apply where the broker <br/>
<a id="pl.59.28"></a><var>59.28</var>seeking the additional license or licenses is an officer of a corporation for or on whose <br/>
<a id="pl.59.29"></a><var>59.29</var>behalf the broker already holds a license and the broker is applying for the additional <br/>
<a id="pl.59.30"></a><var>59.30</var>license or licenses for or on behalf of an affiliated corporation or corporations of which he <br/>
<a id="pl.59.31"></a><var>59.31</var>or she is also an officer. For the purpose of this section and sections 
         <statute_ref>82.31, subdivisions 1 <br/>
<a id="pl.59.32"></a><var>59.32</var>to 4
         </statute_ref>; 
         <statute_ref>82.33, subdivisions 1 to 3</statute_ref>; 
         <statute_ref>82.35, subdivision 2</statute_ref>; and 
         <statute_ref>82.39</statute_ref>, "affiliated corporation <br/>
<a id="pl.59.33"></a><var>59.33</var>business entity" means a corporation which is directly or indirectly controlled business <br/>
<a id="pl.59.34"></a><var>59.34</var>entity that is majority-owned by the same persons as the corporation business entity for <br/>
<a id="pl.59.35"></a><var>59.35</var>which or on whose behalf the broker is already licensed to act.  <br/>
<a id="pl.60.1"></a><var>60.1</var>For the purposes of this section and sections 
         <statute_ref>82.31, subdivisions 1 to 4</statute_ref>; 
         <statute_ref>82.33, <br/>
<a id="pl.60.2"></a><var>60.2</var>subdivisions 1 to 3
         </statute_ref>; 
         <statute_ref>82.35, subdivision 2</statute_ref>; and 
         <statute_ref>82.39</statute_ref>, a legitimate business purpose <br/>
<a id="pl.60.3"></a><var>60.3</var>includes engaging in a different and specialized area of real estate or maintaining an <br/>
<a id="pl.60.4"></a><var>60.4</var>existing business name.  <br/>
<br/>
<a id="bill.0.65.0"></a><a id="pl.60.5"></a><var>60.5</var>    Sec. 65. Minnesota Statutes 2008, section 82.34, subdivision 4, is amended to read:<br/>
<a id="pl.60.6"></a><var>60.6</var>    Subd. 4. <b>Issuance of license; salesperson.</b> A salesperson must be licensed to act <br/>
<a id="pl.60.7"></a><var>60.7</var>on behalf of a licensed broker and may not be licensed to act on behalf of more than <br/>
<a id="pl.60.8"></a><var>60.8</var>one broker in this state during the same period of time. The license of each real estate <br/>
<a id="pl.60.9"></a><var>60.9</var>salesperson shall be mailed to and remain in the possession of the licensed broker with <br/>
<a id="pl.60.10"></a><var>60.10</var>whom the salesperson is or is to be associated until canceled or until such licensee leaves <br/>
<a id="pl.60.11"></a><var>60.11</var>such broker.<br/>
<br/>
<a id="bill.0.66.0"></a><a id="pl.60.12"></a><var>60.12</var>    Sec. 66. Minnesota Statutes 2008, section 82.34, subdivision 5, is amended to read:<br/>
<a id="pl.60.13"></a><var>60.13</var>    Subd. 5. <b>Effective date of license.</b> Licenses A license renewed pursuant to this <br/>
<a id="pl.60.14"></a><var>60.14</var>chapter are is valid for a period of 24 months. New licenses A new license issued during a <br/>
<a id="pl.60.15"></a><var>60.15</var>24-month licensing period will expire on June 30 of the expiration year assigned to the <br/>
<a id="pl.60.16"></a><var>60.16</var>license. Implementation of the 24-month licensing program must be staggered so that <br/>
<a id="pl.60.17"></a><var>60.17</var>approximately one-half of the licenses will expire on June 30 of each even-numbered year <br/>
<a id="pl.60.18"></a><var>60.18</var>and the other one-half on June 30 of each odd-numbered year. Those licensees who will <br/>
<a id="pl.60.19"></a><var>60.19</var>receive a 12-month license on July 1, 1995, because of the staggered implementation <br/>
<a id="pl.60.20"></a><var>60.20</var>schedule will pay for the license a fee reduced by an amount equal to one-half the fee <br/>
<a id="pl.60.21"></a><var>60.21</var>for renewal of the license.<br/>
<br/>
<a id="bill.0.67.0"></a><a id="pl.60.22"></a><var>60.22</var>    Sec. 67. Minnesota Statutes 2008, section 82.34, subdivision 13, is amended to read:<br/>
<a id="pl.60.23"></a><var>60.23</var>    Subd. 13. <b>Limited broker's license.</b> (a) The commissioner shall have the authority <br/>
<a id="pl.60.24"></a><var>60.24</var>to issue a limited real estate broker's license authorizing the licensee to engage in <br/>
<a id="pl.60.25"></a><var>60.25</var>transactions as principal only. Such license shall be issued only after receipt of the <br/>
<a id="pl.60.26"></a><var>60.26</var>application described in section 
<statute_ref>82.31, subdivision 2</statute_ref>, and payment of the fee prescribed <br/>
<a id="pl.60.27"></a><var>60.27</var>by section 
<statute_ref>82.24, subdivision 1</statute_ref>. No salesperson may be licensed to act on behalf of an <br/>
<a id="pl.60.28"></a><var>60.28</var>individual holding a limited broker's license. An officer of a corporation or partner of a <br/>
<a id="pl.60.29"></a><var>60.29</var>partnership licensed as a limited broker may act on behalf of that corporation or partnership <br/>
<a id="pl.60.30"></a><var>60.30</var>without being subject to the licensing requirements. following limited activities: <br/>
<a id="pl.60.31"></a><var>60.31</var>(b) A limited broker's license shall also authorize the licensee to engage in <br/>
<a id="pl.60.32"></a><var>60.32</var>negotiation of mortgage loans, other than residential mortgage loans, as described in <br/>
<a id="pl.60.33"></a><var>60.33</var>section 
<statute_ref>82.17, subdivision 18</statute_ref>, clause (b).  <br/>
<a id="pl.61.1"></a><var>61.1</var>(1) the licensee to engage in transactions as principal only; or<br/>
<a id="pl.61.2"></a><var>61.2</var>(2) the licensee to engage in negotiations of mortgage loans, other than residential <br/>
<a id="pl.61.3"></a><var>61.3</var>mortgage loans, as described in section 
<statute_ref>82.17, subdivision 18,</statute_ref> clause (b).<br/>
<a id="pl.61.4"></a><var>61.4</var>The license may be issued only after receipt of the application described in section <br/>
<a id="pl.61.5"></a><var>61.5</var><statute_ref>82.31, subdivision 2,</statute_ref> and payment of the fee prescribed by section
<statute_ref> 82.24, subdivision 1</statute_ref>. A <br/>
<a id="pl.61.6"></a><var>61.6</var>salesperson may not be licensed to act on behalf of an individual holding a limited broker's <br/>
<a id="pl.61.7"></a><var>61.7</var>license. A responsible person of a business entity licensed as a limited broker may act on <br/>
<a id="pl.61.8"></a><var>61.8</var>behalf of that business entity without being subject to the licensing requirements.<br/>
<br/>
<a id="bill.0.68.0"></a><a id="pl.61.9"></a><var>61.9</var>    Sec. 68. Minnesota Statutes 2008, section 82.39, is amended to read:<br/>
<a id="pl.61.10"></a><var>61.10</var><b>82.39 NOTICE TO COMMISSIONER.</b><br/>
<a id="pl.61.11"></a><var>61.11</var>    Subdivision 1. <b>Notice</b><b> Change of application information</b><b>.</b> Notice in writing <br/>
<a id="pl.61.12"></a><var>61.12</var>or in the format prescribed by the commissioner shall be given to the commissioner by <br/>
<a id="pl.61.13"></a><var>61.13</var>each a licensee of any change in of information contained in the license application on file <br/>
<a id="pl.61.14"></a><var>61.14</var>with the commissioner, including but not limited to personal name, trade name, address or <br/>
<a id="pl.61.15"></a><var>61.15</var>business location not later than ten days after such the change. The commissioner shall <br/>
<a id="pl.61.16"></a><var>61.16</var>issue a new license if required for the unexpired period.<br/>
<a id="pl.61.17"></a><var>61.17</var>    Subd. 2. <b>Mandatory.</b> Licensees The licensee shall notify the commissioner in <br/>
<a id="pl.61.18"></a><var>61.18</var>writing or in the format prescribed by the commissioner within ten days of the facts in <br/>
<a id="pl.61.19"></a><var>61.19</var>subdivisions 3 to 5.<br/>
<a id="pl.61.20"></a><var>61.20</var>    Subd. 3. <b>Civil judgment.</b> Licensees The licensee must notify the commissioner <br/>
<a id="pl.61.21"></a><var>61.21</var>in writing within ten days of a final adverse decision or order of a court, whether or not <br/>
<a id="pl.61.22"></a><var>61.22</var>the decision or order is appealed, regarding any proceeding in which the licensee was <br/>
<a id="pl.61.23"></a><var>61.23</var>named as a defendant, and which alleged fraud, misrepresentation, or the conversion of <br/>
<a id="pl.61.24"></a><var>61.24</var>funds, if the final adverse decision relates to the allegations of fraud, misrepresentation, or <br/>
<a id="pl.61.25"></a><var>61.25</var>the conversion of funds.<br/>
<a id="pl.61.26"></a><var>61.26</var>    Subd. 4. <b>Disciplinary action.</b> The licensee must notify the commissioner in writing <br/>
<a id="pl.61.27"></a><var>61.27</var>within ten days of the suspension or revocation of the licensee's real estate or other <br/>
<a id="pl.61.28"></a><var>61.28</var>occupational license issued by this state or another jurisdiction.<br/>
<a id="pl.61.29"></a><var>61.29</var>    Subd. 5. <b>Criminal offense.</b> The licensee must notify the commissioner in writing <br/>
<a id="pl.61.30"></a><var>61.30</var>within ten days if the licensee is charged with, adjudged guilty of, or enters a plea of <br/>
<a id="pl.61.31"></a><var>61.31</var>guilty or nolo contendere to a charge of any felony, or of any gross misdemeanor alleging <br/>
<a id="pl.61.32"></a><var>61.32</var>fraud, misrepresentation, conversion of funds, or a similar violation of any real estate <br/>
<a id="pl.61.33"></a><var>61.33</var>licensing law.<br/>
<br/>
<a id="bill.0.69.0"></a><a id="pl.61.34"></a><var>61.34</var>    Sec. 69. Minnesota Statutes 2008, section 82.41, subdivision 1, is amended to read:<br/>
<a id="pl.62.1"></a><var>62.1</var>    Subdivision 1. <b>License required.</b> No person shall act as a real estate broker, <br/>
<a id="pl.62.2"></a><var>62.2</var>or real estate salesperson, or real estate closing agent unless licensed as herein provided <br/>
<a id="pl.62.3"></a><var>62.3</var>in this section.<br/>
<br/>
<a id="bill.0.70.0"></a><a id="pl.62.4"></a><var>62.4</var>    Sec. 70. Minnesota Statutes 2008, section 82.41, subdivision 2, is amended to read:<br/>
<a id="pl.62.5"></a><var>62.5</var>    Subd. 2. <b>Misrepresenting status as licensee.</b> No persons shall advertise or <br/>
<a id="pl.62.6"></a><var>62.6</var>represent themselves to be real estate brokers, salespeople, or closing agents or real estate <br/>
<a id="pl.62.7"></a><var>62.7</var>salespersons unless licensed as herein provided in this section.<br/>
<br/>
<a id="bill.0.71.0"></a><a id="pl.62.8"></a><var>62.8</var>    Sec. 71. Minnesota Statutes 2008, section 82.41, is amended by adding a subdivision <br/>
<a id="pl.62.9"></a><var>62.9</var>to read:<br/>
<a id="pl.62.10"></a><var>62.10</var>    Subd. 3a. <b>Limitation on broker when transaction not completed.</b> When the <br/>
<a id="pl.62.11"></a><var>62.11</var>owner fails or is unable to consummate a real estate transaction, through no fault of the <br/>
<a id="pl.62.12"></a><var>62.12</var>purchaser, the listing broker may not claim any portion of any trust funds deposited with <br/>
<a id="pl.62.13"></a><var>62.13</var>the broker by the purchaser, absent a separate agreement with the purchaser.<br/>
<br/>
<a id="bill.0.72.0"></a><a id="pl.62.14"></a><var>62.14</var>    Sec. 72. Minnesota Statutes 2008, section 82.45, subdivision 3, is amended to read:<br/>
<a id="pl.62.15"></a><var>62.15</var>    Subd. 3. <b>Retention.</b> A licensed real estate broker shall retain for three six years <br/>
<a id="pl.62.16"></a><var>62.16</var>copies of all listings, buyer representation and facilitator services contracts, deposit <br/>
<a id="pl.62.17"></a><var>62.17</var>receipts, purchase money contracts, canceled checks, trust account records, and such <br/>
<a id="pl.62.18"></a><var>62.18</var>other documents as may reasonably be related to carrying on a real estate brokerage <br/>
<a id="pl.62.19"></a><var>62.19</var>business. The retention period shall run from the date of the closing of the transaction, <br/>
<a id="pl.62.20"></a><var>62.20</var>or from the date of the document if the document is not consummated. The following <br/>
<a id="pl.62.21"></a><var>62.21</var>documents need not be retained:<br/>
<a id="pl.62.22"></a><var>62.22</var>(1) agency disclosure forms provided to prospective buyers or sellers, where no <br/>
<a id="pl.62.23"></a><var>62.23</var>contractual relationship is subsequently created and no services are provided by the <br/>
<a id="pl.62.24"></a><var>62.24</var>licensee; and<br/>
<a id="pl.62.25"></a><var>62.25</var>(2) facilitator services contracts or buyer representation contracts entered into with <br/>
<a id="pl.62.26"></a><var>62.26</var>prospective buyers, where the prospective buyer abandons the contractual relationship <br/>
<a id="pl.62.27"></a><var>62.27</var>before any services have been provided by the licensee.<br/>
<br/>
<a id="bill.0.73.0"></a><a id="pl.62.28"></a><var>62.28</var>    Sec. 73. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision <br/>
<a id="pl.62.29"></a><var>62.29</var>to read:<br/>
<a id="pl.62.30"></a><var>62.30</var>    Subd. 4. <b>Storage.</b> Storage of documents identified in subdivision 3 may be stored <br/>
<a id="pl.62.31"></a><var>62.31</var>by electronic means.<br/>
<br/>
<a id="bill.0.74.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 74. Minnesota Statutes 2008, section 82.45, is amended by adding a subdivision <br/>
<a id="pl.63.2"></a><var>63.2</var>to read:<br/>
<a id="pl.63.3"></a><var>63.3</var>    Subd. 5. <b>Destruction.</b> After the retention period specified in subdivision 3 has <br/>
<a id="pl.63.4"></a><var>63.4</var>elapsed and the broker no longer wishes to retain the documents, the broker must ensure <br/>
<a id="pl.63.5"></a><var>63.5</var>that the documents are disposed of according to the confidential record destruction <br/>
<a id="pl.63.6"></a><var>63.6</var>procedures of the Fair and Accurate Credit Transaction Act of 2003, Public Law 108-159.<br/>
<br/>
<a id="bill.0.75.0"></a><a id="pl.63.7"></a><var>63.7</var>    Sec. 75. Minnesota Statutes 2008, section 82.48, subdivision 2, is amended to read:<br/>
<a id="pl.63.8"></a><var>63.8</var>    Subd. 2. <b>Penalty for noncompliance.</b> The methods, acts, or practices set forth in <br/>
<a id="pl.63.9"></a><var>63.9</var>subdivisions 1 and 3 and sections 
         <statute_ref>82.19</statute_ref>; 
         <statute_ref>82.22</statute_ref>; 
         <statute_ref>82.27</statute_ref>; 
         <statute_ref>82.31, subdivision 6</statute_ref>;
<statute_ref>82.37</statute_ref>; and <br/>
<statute_ref><a id="pl.63.10"></a><var>63.10</var>82.41, subdivision 11
         </statute_ref>, are standards of conduct governing the activities of real estate <br/>
<a id="pl.63.11"></a><var>63.11</var>brokers and salespersons. Failure to comply with these standards shall constitute grounds <br/>
<a id="pl.63.12"></a><var>63.12</var>for license denial, suspension, or revocation, or for censure of the licensee. <br/>
<br/>
<a id="bill.0.76.0"></a><a id="pl.63.13"></a><var>63.13</var>    Sec. 76. Minnesota Statutes 2008, section 82.48, subdivision 3, is amended to read:<br/>
<a id="pl.63.14"></a><var>63.14</var>    Subd. 3. <b>Responsibilities of brokers.</b> (a) <b>Supervision of personnel.</b> Brokers A <br/>
<a id="pl.63.15"></a><var>63.15</var>broker shall adequately supervise the activities of their the broker's salespersons and <br/>
<a id="pl.63.16"></a><var>63.16</var>employees. Supervision includes the ongoing monitoring of listing agreements, purchase <br/>
<a id="pl.63.17"></a><var>63.17</var>agreements, other real estate-related documents which are prepared or drafted by the <br/>
<a id="pl.63.18"></a><var>63.18</var>broker's salespersons or employees or which are otherwise received by the broker's office, <br/>
<a id="pl.63.19"></a><var>63.19</var>and the review of all trust account books and records. If an individual broker maintains <br/>
<a id="pl.63.20"></a><var>63.20</var>more than one place of business, each place of business shall be under the broker's direction <br/>
<a id="pl.63.21"></a><var>63.21</var>and supervision. If a partnership or corporate broker brokerage maintains more than one <br/>
<a id="pl.63.22"></a><var>63.22</var>place of business, each place of business shall be under the direction and supervision of an <br/>
<a id="pl.63.23"></a><var>63.23</var>individual broker licensed to act on behalf of the partnership or corporation brokerage. <br/>
<a id="pl.63.24"></a><var>63.24</var>The primary broker shall maintain records specifying the name of each broker <br/>
<a id="pl.63.25"></a><var>63.25</var>responsible for the direction and supervision of each place of business. If an individual <br/>
<a id="pl.63.26"></a><var>63.26</var>broker, who may be the primary broker, is responsible for supervising more than one <br/>
<a id="pl.63.27"></a><var>63.27</var>place of business, the primary broker shall, upon written request of the commissioner, <br/>
<a id="pl.63.28"></a><var>63.28</var>file a written statement specifying the procedures which have been established to ensure <br/>
<a id="pl.63.29"></a><var>63.29</var>that all salespersons and employees are adequately supervised. Designation of another <br/>
<a id="pl.63.30"></a><var>63.30</var>broker to supervise a place of business does not relieve the primary broker of the ultimate <br/>
<a id="pl.63.31"></a><var>63.31</var>responsibility for the actions of licensees.<br/>
<a id="pl.63.32"></a><var>63.32</var>(b)  <b>Preparation and safekeeping of documents.</b> Brokers shall be A broker is <br/>
<a id="pl.63.33"></a><var>63.33</var>responsible for the preparation, custody, safety, and accuracy of all real estate contracts, <br/>
<a id="pl.64.1"></a><var>64.1</var>documents, and records, even though another person may be assigned these duties by <br/>
<a id="pl.64.2"></a><var>64.2</var>the broker. <br/>
<a id="pl.64.3"></a><var>64.3</var>(c)  <b>Documentation and resolution of complaints.</b> Brokers A broker shall <br/>
<a id="pl.64.4"></a><var>64.4</var>investigate and attempt to resolve complaints made regarding the practices of any <br/>
<a id="pl.64.5"></a><var>64.5</var>individual licensed to them the broker and shall maintain, with respect to each individual <br/>
<a id="pl.64.6"></a><var>64.6</var>licensed to them the broker, a complaint file containing all material relating to any <br/>
<a id="pl.64.7"></a><var>64.7</var>complaints received in writing for a period of three years. <br/>
<a id="pl.64.8"></a><var>64.8</var>(d)  <b>Disclosure of listed property information.</b> A broker may allow any unlicensed <br/>
<a id="pl.64.9"></a><var>64.9</var>person, who is authorized by the broker, to disclose any factual information pertaining <br/>
<a id="pl.64.10"></a><var>64.10</var>to the properties listed with the broker, if the factual information is provided to the <br/>
<a id="pl.64.11"></a><var>64.11</var>unlicensed person in written form by the broker representing or assisting the seller(s). <br/>
<br/>
<a id="bill.0.77.0"></a><a id="pl.64.12"></a><var>64.12</var>    Sec. 77. <b>[82.52] ADVERTISING REQUIREMENTS.</b><br/>
<a id="pl.64.13"></a><var>64.13</var>A licensee shall identify himself or herself as either a broker or an agent salesperson <br/>
<a id="pl.64.14"></a><var>64.14</var>in any advertising for the purchase, sale, lease, exchange, mortgaging, transfer, or other <br/>
<a id="pl.64.15"></a><var>64.15</var>disposition of real property, whether the advertising pertains to the licensee's own property <br/>
<a id="pl.64.16"></a><var>64.16</var>or the property of others.<br/>
<a id="pl.64.17"></a><var>64.17</var>If a salesperson or broker is part of a team or group within the brokerage, the licensee <br/>
<a id="pl.64.18"></a><var>64.18</var>may include the team or group name in the advertising only under the following conditions:<br/>
<a id="pl.64.19"></a><var>64.19</var>(1) the inclusion of the team or group name is authorized by the primary broker of <br/>
<a id="pl.64.20"></a><var>64.20</var>the brokerage to which the salesperson or broker is licensed; and<br/>
<a id="pl.64.21"></a><var>64.21</var>(2) the real estate brokerage name is included and more prominently displayed than <br/>
<a id="pl.64.22"></a><var>64.22</var>the team or group name in the advertising.<br/>
<br/>
<a id="bill.0.78.0"></a><a id="pl.64.23"></a><var>64.23</var>    Sec. 78. <b>[82.53] REAL ESTATE CLOSING AGENT LICENSING.</b><br/>
<a id="pl.64.24"></a><var>64.24</var>    Subdivision 1. <b>Generally.</b> The commissioner shall issue a license as a closing agent <br/>
<a id="pl.64.25"></a><var>64.25</var>to a person who qualifies for the license under the terms of this chapter.<br/>
<a id="pl.64.26"></a><var>64.26</var>    Subd. 2. <b>Qualification of applicants.</b> An applicant for a real estate closing agent <br/>
<a id="pl.64.27"></a><var>64.27</var>license must be at least 18 years of age at the time of making application for the license.<br/>
<a id="pl.64.28"></a><var>64.28</var>    Subd. 3. <b>Application for license; contents.</b> (a) An applicant for a real estate closing <br/>
<a id="pl.64.29"></a><var>64.29</var>agent license shall make an application in the format prescribed by the commissioner. The <br/>
<a id="pl.64.30"></a><var>64.30</var>application must be accompanied by the license fee required by this chapter.<br/>
<a id="pl.64.31"></a><var>64.31</var>(b) An application for a real estate closing agent license must contain the information <br/>
<a id="pl.64.32"></a><var>64.32</var>required by the commissioner consistent with this chapter.<br/>
<a id="pl.64.33"></a><var>64.33</var>(c) An application for a real estate closing agent license shall give the applicant's <br/>
<a id="pl.64.34"></a><var>64.34</var>legal name, age, residence address, and the name and place of business of the closing agent.<br/>
<a id="pl.65.1"></a><var>65.1</var>(d) The commissioner may require further information the commissioner considers <br/>
<a id="pl.65.2"></a><var>65.2</var>appropriate to administer this chapter.<br/>
<a id="pl.65.3"></a><var>65.3</var>    Subd. 4. <b>Instruction.</b> An applicant for a real estate closing agent's license must <br/>
<a id="pl.65.4"></a><var>65.4</var>successfully complete a course of study relating to closing services consisting of eight <br/>
<a id="pl.65.5"></a><var>65.5</var>hours of instruction approved by the commissioner.<br/>
<a id="pl.65.6"></a><var>65.6</var>    Subd. 5. <b>Change of application information.</b> The commissioner must be notified <br/>
<a id="pl.65.7"></a><var>65.7</var>in the format prescribed by the commissioner of a change of information contained in the <br/>
<a id="pl.65.8"></a><var>65.8</var>license application on file with the commissioner within ten days of the change.<br/>
<a id="pl.65.9"></a><var>65.9</var>    Subd. 6. <b>Exemption.</b> The following persons, when acting as closing agents, are <br/>
<a id="pl.65.10"></a><var>65.10</var>exempt from the requirements of sections 
<statute_ref>82.41 and 82.50</statute_ref> unless otherwise required <br/>
<a id="pl.65.11"></a><var>65.11</var>in this chapter:<br/>
<a id="pl.65.12"></a><var>65.12</var>(1) a direct employee of a title insurance company authorized to do business in this <br/>
<a id="pl.65.13"></a><var>65.13</var>state, or a direct employee of a title company, or a person who has an agency agreement <br/>
<a id="pl.65.14"></a><var>65.14</var>with a title insurance company or a title company in which the agent agrees to perform <br/>
<a id="pl.65.15"></a><var>65.15</var>closing services on the title insurance company's or title company's behalf and the title <br/>
<a id="pl.65.16"></a><var>65.16</var>insurance company or title company assumes responsibility for the actions of the agent as <br/>
<a id="pl.65.17"></a><var>65.17</var>if the agent were a direct employee of the title insurance company or title company;<br/>
<a id="pl.65.18"></a><var>65.18</var>(2) a licensed attorney or a direct employee of a licensed attorney;<br/>
<a id="pl.65.19"></a><var>65.19</var>(3) a licensed real estate broker or salesperson;<br/>
<a id="pl.65.20"></a><var>65.20</var>(4) a direct employee of a licensed real estate broker if the broker maintains all funds <br/>
<a id="pl.65.21"></a><var>65.21</var>received in connection with the closing services in the broker's trust account;<br/>
<a id="pl.65.22"></a><var>65.22</var>(5) a bank, trust company, savings association, credit union, industrial loan and thrift <br/>
<a id="pl.65.23"></a><var>65.23</var>company, regulated lender under chapter 56, public utility, or land mortgage or farm loan <br/>
<a id="pl.65.24"></a><var>65.24</var>association organized under the laws of this state or the United States, when engaged in <br/>
<a id="pl.65.25"></a><var>65.25</var>the transaction of businesses within the scope of its corporate powers as provided by law;<br/>
<a id="pl.65.26"></a><var>65.26</var>(6) a title insurance company authorized to do business in this state; and<br/>
<a id="pl.65.27"></a><var>65.27</var>(7) a title company that has a contractual agency relationship with a title insurance <br/>
<a id="pl.65.28"></a><var>65.28</var>company authorized to do business in this state, where the title insurance company <br/>
<a id="pl.65.29"></a><var>65.29</var>assumes responsibility for the actions of the title company and its employees or agents as <br/>
<a id="pl.65.30"></a><var>65.30</var>if they were employees or agents of the title insurance company.<br/>
<br/>
<a id="bill.0.79.0"></a><a id="pl.65.31"></a><var>65.31</var>    Sec. 79. <b>[82.54] OTHER DISCLOSURE REQUIREMENTS.</b><br/>
<a id="pl.65.32"></a><var>65.32</var>    Subdivision 1. <b>Agent of broker disclosure.</b> A salesperson shall only conduct <br/>
<a id="pl.65.33"></a><var>65.33</var>business under the licensed name of and on behalf of the broker to whom the salesperson <br/>
<a id="pl.65.34"></a><var>65.34</var>is licensed. An individual broker shall only conduct business under the brokerage's <br/>
<a id="pl.65.35"></a><var>65.35</var>licensed name. A broker licensed to a business entity shall only conduct business under <br/>
<a id="pl.66.1"></a><var>66.1</var>the licensed business entity name. A licensee shall affirmatively disclose, before the <br/>
<a id="pl.66.2"></a><var>66.2</var>negotiation or consummation of any transaction, the licensed name of the brokerage under <br/>
<a id="pl.66.3"></a><var>66.3</var>whom the licensee is authorized to conduct business according to this section.<br/>
<a id="pl.66.4"></a><var>66.4</var>    Subd. 2. <b>Financial interests or relative or business associate disclosure; </b><br/>
<a id="pl.66.5"></a><var>66.5</var><b>licensee.</b> (a) Before the negotiation or consummation of any transaction, a licensee shall <br/>
<a id="pl.66.6"></a><var>66.6</var>affirmatively disclose to the owner of real property that the licensee is a real estate broker <br/>
<a id="pl.66.7"></a><var>66.7</var>or agent salesperson, and in what capacity the licensee is acting, if the licensee directly, or <br/>
<a id="pl.66.8"></a><var>66.8</var>indirectly through a third party, purchases for himself or herself or acquires, or intends to <br/>
<a id="pl.66.9"></a><var>66.9</var>acquire, any interest in, or any option to purchase, the owner's property.<br/>
<a id="pl.66.10"></a><var>66.10</var>(b) When a principal in the transaction is a licensee or a relative or business associate <br/>
<a id="pl.66.11"></a><var>66.11</var>of the licensee, that fact must be disclosed in writing.<br/>
<a id="pl.66.12"></a><var>66.12</var>    Subd. 3. <b>Material facts.</b> (a) A licensee shall disclose to a prospective purchaser <br/>
<a id="pl.66.13"></a><var>66.13</var>all material facts of which the licensee is aware, which could adversely and significantly <br/>
<a id="pl.66.14"></a><var>66.14</var>affect an ordinary purchaser's use or enjoyment of the property, or any intended use of the <br/>
<a id="pl.66.15"></a><var>66.15</var>property of which the licensee is aware.<br/>
<a id="pl.66.16"></a><var>66.16</var>    (b) It is not a material fact relating to real property offered for sale the fact or <br/>
<a id="pl.66.17"></a><var>66.17</var>suspicion that the property:<br/>
<a id="pl.66.18"></a><var>66.18</var>    (1) is or was occupied by an owner or occupant who is or was suspected <br/>
<a id="pl.66.19"></a><var>66.19</var>to be infected with human immunodeficiency virus or diagnosed with acquired <br/>
<a id="pl.66.20"></a><var>66.20</var>immunodeficiency syndrome;<br/>
<a id="pl.66.21"></a><var>66.21</var>    (2) was the site of a suicide, accidental death, natural death, or perceived paranormal <br/>
<a id="pl.66.22"></a><var>66.22</var>activity; or<br/>
<a id="pl.66.23"></a><var>66.23</var>    (3) is located in a neighborhood containing any adult family home, community-based <br/>
<a id="pl.66.24"></a><var>66.24</var>residential facility, or nursing home.<br/>
<a id="pl.66.25"></a><var>66.25</var>    (c) A licensee or employee of the licensee has no duty to disclose information <br/>
<a id="pl.66.26"></a><var>66.26</var>regarding an offender who is required to register under section 
<statute_ref>243.166</statute_ref>, or about whom <br/>
<a id="pl.66.27"></a><var>66.27</var>notification is made under that section, if the broker or salesperson, in a timely manner, <br/>
<a id="pl.66.28"></a><var>66.28</var>provides a written notice that information about the predatory offender registry and <br/>
<a id="pl.66.29"></a><var>66.29</var>persons registered with the registry may be obtained by contacting local law enforcement <br/>
<a id="pl.66.30"></a><var>66.30</var>where the property is located or the Department of Corrections.<br/>
<a id="pl.66.31"></a><var>66.31</var>    (d) A licensee or employee of the licensee has no duty to disclose information <br/>
<a id="pl.66.32"></a><var>66.32</var>regarding airport zoning regulations if the broker or salesperson, in a timely manner, <br/>
<a id="pl.66.33"></a><var>66.33</var>provides a written notice that a copy of the airport zoning regulations as adopted can be <br/>
<a id="pl.66.34"></a><var>66.34</var>reviewed or obtained at the office of the county recorder where the zoned area is located.<br/>
<a id="pl.66.35"></a><var>66.35</var>    (e) A licensee is not required to disclose, except as otherwise provided in paragraph <br/>
<a id="pl.66.36"></a><var>66.36</var>(f), information relating to the physical condition of the property or any other information <br/>
<a id="pl.67.1"></a><var>67.1</var>relating to the real estate transaction, if a written report that discloses the information has <br/>
<a id="pl.67.2"></a><var>67.2</var>been prepared by a qualified third party and provided to the person. For the purposes of <br/>
<a id="pl.67.3"></a><var>67.3</var>this paragraph, "qualified third party" means a federal, state, or local governmental agency, <br/>
<a id="pl.67.4"></a><var>67.4</var>or any person whom the broker, salesperson, or a party to the real estate transaction <br/>
<a id="pl.67.5"></a><var>67.5</var>reasonably believes has the expertise necessary to meet the industry standards of practice <br/>
<a id="pl.67.6"></a><var>67.6</var>for the type of inspection or investigation that has been conducted by the third party <br/>
<a id="pl.67.7"></a><var>67.7</var>in order to prepare the written report and who is acceptable to the person to whom the <br/>
<a id="pl.67.8"></a><var>67.8</var>disclosure is being made.<br/>
<a id="pl.67.9"></a><var>67.9</var>    (f) A licensee shall disclose to the parties to a real estate transaction any facts known <br/>
<a id="pl.67.10"></a><var>67.10</var>by the broker or salesperson that contradict any information included in a written report <br/>
<a id="pl.67.11"></a><var>67.11</var>described in paragraph (e), if a copy of the report is provided to the licensee.<br/>
<a id="pl.67.12"></a><var>67.12</var>    (g) The limitation on disclosures in paragraphs (b) and (c) shall modify any common <br/>
<a id="pl.67.13"></a><var>67.13</var>law duties with respect to disclosure of material facts.<br/>
<a id="pl.67.14"></a><var>67.14</var>    Subd. 4. <b>Nonperformance of party.</b> If a licensee is put on notice by a party to a <br/>
<a id="pl.67.15"></a><var>67.15</var>real estate transaction that the party will not perform according to the terms of a purchase <br/>
<a id="pl.67.16"></a><var>67.16</var>agreement or other similar written agreement to convey real estate, the licensee shall <br/>
<a id="pl.67.17"></a><var>67.17</var>immediately disclose the fact of that party's intent not to perform to the other party or <br/>
<a id="pl.67.18"></a><var>67.18</var>parties to the transaction. The licensee shall, if reasonably possible, inform the party who <br/>
<a id="pl.67.19"></a><var>67.19</var>will not perform of the licensee's obligation to disclose this fact to the other party or <br/>
<a id="pl.67.20"></a><var>67.20</var>parties to the transaction before making the disclosure. The obligation required by this <br/>
<a id="pl.67.21"></a><var>67.21</var>section does not apply to notice of a party's inability to keep or fulfill any contingency to <br/>
<a id="pl.67.22"></a><var>67.22</var>which the real estate transaction has been made subject.<br/>
<br/>
<a id="bill.0.80.0"></a><a id="pl.67.23"></a><var>67.23</var>    Sec. 80. Minnesota Statutes 2008, section 82B.05, as amended by Laws 2009, chapter <br/>
<a id="pl.67.24"></a><var>67.24</var>63, section 62, is amended to read:<br/>
<a id="pl.67.25"></a><var>67.25</var><b>82B.05 REAL ESTATE APPRAISER ADVISORY BOARD.</b><br/>
<a id="pl.67.26"></a><var>67.26</var>    Subdivision 1. <b>Members.</b> The Real Estate Appraiser Advisory Board consists of <br/>
<a id="pl.67.27"></a><var>67.27</var>15 nine members appointed by the commissioner of commerce. Three of the members <br/>
<a id="pl.67.28"></a><var>67.28</var>must be public members, four must be consumers of appraisal services, of whom one <br/>
<a id="pl.67.29"></a><var>67.29</var>member must be employed in the financial lending industry, and eight six must be real <br/>
<a id="pl.67.30"></a><var>67.30</var>estate appraisers who are currently licensed in good standing, of whom not less than two <br/>
<a id="pl.67.31"></a><var>67.31</var>three members must be trainee real property appraisers, licensed real property appraisers, <br/>
<a id="pl.67.32"></a><var>67.32</var>or certified residential real property appraisers, not less than two and three members must <br/>
<a id="pl.67.33"></a><var>67.33</var>be certified general real property appraisers, and not less than. At least one member of the <br/>
<a id="pl.67.34"></a><var>67.34</var>board must be certified by the Appraisal Qualification Board of the Appraisal Foundation <br/>
<a id="pl.68.1"></a><var>68.1</var>to teach the Uniform Standards of Professional Appraisal Practice. The board is governed <br/>
<a id="pl.68.2"></a><var>68.2</var>by section 
         <statute_ref>15.0575</statute_ref>.<br/>
<a id="pl.68.3"></a><var>68.3</var>    Subd. 3. <b>Terms.</b> The term of office for members is three years.<br/>
<a id="pl.68.4"></a><var>68.4</var>Upon expiration of their terms, members of the board shall continue to hold office <br/>
<a id="pl.68.5"></a><var>68.5</var>until the appointment and qualification of their successors. No person may serve as a <br/>
<a id="pl.68.6"></a><var>68.6</var>member of the board for more than two consecutive terms. The commissioner may <br/>
<a id="pl.68.7"></a><var>68.7</var>remove a member for cause.<br/>
<a id="pl.68.8"></a><var>68.8</var>    Subd. 4. <b>Practice of public members prohibited.</b> The public members of the board <br/>
<a id="pl.68.9"></a><var>68.9</var>may not be engaged in the practice of real estate appraising.<br/>
<a id="pl.68.10"></a><var>68.10</var>    Subd. 5. <b>Conduct of meetings.</b> Places of regular board meetings must be decided <br/>
<a id="pl.68.11"></a><var>68.11</var>by the vote of members. Written notice must be given to each member of the time and <br/>
<a id="pl.68.12"></a><var>68.12</var>place of each meeting of the board at least ten days before the scheduled date of regular <br/>
<a id="pl.68.13"></a><var>68.13</var>board meetings. The board shall establish procedures for emergency board meetings and <br/>
<a id="pl.68.14"></a><var>68.14</var>other operational procedures, subject to the approval of the commissioner.<br/>
<a id="pl.68.15"></a><var>68.15</var>The members of the board shall elect a chair to preside at board meetings, a <br/>
<a id="pl.68.16"></a><var>68.16</var>vice-chair, and a secretary from among the members to preside at board meetings.<br/>
<a id="pl.68.17"></a><var>68.17</var>A quorum of the board is eight five members.<br/>
<a id="pl.68.18"></a><var>68.18</var>The board shall meet at least once every six three months as determined by a <br/>
<a id="pl.68.19"></a><var>68.19</var>majority vote of the members or a call of the commissioner.<br/>
<a id="pl.68.20"></a><var>68.20</var>    Subd. 6. <b>Compensation.</b> Each member of the board is entitled to a per diem <br/>
<a id="pl.68.21"></a><var>68.21</var>allowance of $35 for each meeting of the board at which the member is present and for each <br/>
<a id="pl.68.22"></a><var>68.22</var>day or substantial part of a day actually spent in the conduct of the business of the board, <br/>
<a id="pl.68.23"></a><var>68.23</var>plus all appropriate expenses unless a greater amount is authorized by section 
         <statute_ref>15.0575</statute_ref>.  <br/>
<a id="pl.68.24"></a><var>68.24</var>    Subd. 7. <b>Enforcement reports.</b> The commissioner shall, on a regular basis, provide <br/>
<a id="pl.68.25"></a><var>68.25</var>the board with the commissioner's public enforcement data.<br/>
<a id="pl.68.26"></a><var>68.26</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2011.<br/>
<br/>
<a id="bill.0.81.0"></a><a id="pl.68.27"></a><var>68.27</var>    Sec. 81. Minnesota Statutes 2008, section 82B.06, is amended to read:<br/>
<a id="pl.68.28"></a><var>68.28</var><b>82B.06 POWERS OF THE BOARD.</b><br/>
<a id="pl.68.29"></a><var>68.29</var>The board shall make recommendations to the commissioner as the commissioner <br/>
<a id="pl.68.30"></a><var>68.30</var>requests or at the board's own initiative on:<br/>
<a id="pl.68.31"></a><var>68.31</var>(1) rules with respect to each category of licensed real estate appraiser, the type of <br/>
<a id="pl.68.32"></a><var>68.32</var>educational experience, appraisal experience, and equivalent experience that will meet <br/>
<a id="pl.68.33"></a><var>68.33</var>the requirements of this chapter;<br/>
<a id="pl.69.1"></a><var>69.1</var>(2) examination specifications for each category of licensed real estate appraiser, <br/>
<a id="pl.69.2"></a><var>69.2</var>to assist in providing or obtaining appropriate examination questions and answers, and <br/>
<a id="pl.69.3"></a><var>69.3</var>procedures for grading examinations;<br/>
<a id="pl.69.4"></a><var>69.4</var>(3) rules with respect to each category of licensed real estate appraiser, the <br/>
<a id="pl.69.5"></a><var>69.5</var>continuing education requirements for the renewal of licensing that will meet the <br/>
<a id="pl.69.6"></a><var>69.6</var>requirements provided in this chapter;<br/>
<a id="pl.69.7"></a><var>69.7</var>(4) periodic review of the standards for the development and communication of <br/>
<a id="pl.69.8"></a><var>69.8</var>real estate appraisals provided in this chapter and rules explaining and interpreting the <br/>
<a id="pl.69.9"></a><var>69.9</var>standards; and<br/>
<a id="pl.69.10"></a><var>69.10</var>(5) other matters necessary in carrying out the provisions of this chapter.<br/>
<a id="pl.69.11"></a><var>69.11</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2011.<br/>
<br/>
<a id="bill.0.82.0"></a><a id="pl.69.12"></a><var>69.12</var>    Sec. 82. Minnesota Statutes 2008, section 82B.14, is amended to read:<br/>
<a id="pl.69.13"></a><var>69.13</var><b>82B.14 EXPERIENCE REQUIREMENT.</b><br/>
<a id="pl.69.14"></a><var>69.14</var>(a) As a prerequisite for licensing as a licensed real property appraiser, an applicant <br/>
<a id="pl.69.15"></a><var>69.15</var>must present evidence satisfactory to the commissioner that the person has obtained 2,000 <br/>
<a id="pl.69.16"></a><var>69.16</var>hours of experience in real property appraisal obtained in no fewer than 12 months.<br/>
<a id="pl.69.17"></a><var>69.17</var>As a prerequisite for licensing as a certified residential real property appraiser, an <br/>
<a id="pl.69.18"></a><var>69.18</var>applicant must present evidence satisfactory to the commissioner that the person has <br/>
<a id="pl.69.19"></a><var>69.19</var>obtained 2,500 hours of experience in real property appraisal obtained in no fewer than <br/>
<a id="pl.69.20"></a><var>69.20</var>24 months.<br/>
<a id="pl.69.21"></a><var>69.21</var>As a prerequisite for licensing as a certified general real property appraiser, an <br/>
<a id="pl.69.22"></a><var>69.22</var>applicant must present evidence satisfactory to the commissioner that the person has <br/>
<a id="pl.69.23"></a><var>69.23</var>obtained 3,000 hours of experience in real property appraisal obtained in no fewer than 30 <br/>
<a id="pl.69.24"></a><var>69.24</var>months. At least 50 percent, or 1,500 hours, must be in nonresidential appraisal work.<br/>
<a id="pl.69.25"></a><var>69.25</var>(b) Each applicant for license under section 
         <statute_ref>82B.11, subdivision 3</statute_ref>, 4, or 5, shall <br/>
<a id="pl.69.26"></a><var>69.26</var>give under oath a detailed listing of the real estate appraisal reports or file memoranda <br/>
<a id="pl.69.27"></a><var>69.27</var>for which experience is claimed by the applicant. Upon request, the applicant shall make <br/>
<a id="pl.69.28"></a><var>69.28</var>available to the commissioner for examination, a sample of appraisal reports that the <br/>
<a id="pl.69.29"></a><var>69.29</var>applicant has prepared in the course of appraisal practice.<br/>
<a id="pl.69.30"></a><var>69.30</var>(c) Notwithstanding section 45.22, a college or university real estate course may be <br/>
<a id="pl.69.31"></a><var>69.31</var>approved retroactively by the commissioner for appraiser prelicense education credit if:<br/>
<a id="pl.69.32"></a><var>69.32</var>(1) the course was offered by a college or university physically located in Minnesota;<br/>
<a id="pl.69.33"></a><var>69.33</var>(2) the college or university was an approved education provider at the time the <br/>
<a id="pl.69.34"></a><var>69.34</var>course was offered;<br/>
<a id="pl.70.1"></a><var>70.1</var>(3) the commissioner's approval is made to the same extent in terms of courses and <br/>
<a id="pl.70.2"></a><var>70.2</var>hours and with the same time limits as those specified by the Appraiser Qualifications <br/>
<a id="pl.70.3"></a><var>70.3</var>Board. <br/>
<a id="pl.70.4"></a><var>70.4</var>(d) Applicants may not receive credit for experience accumulated while unlicensed, <br/>
<a id="pl.70.5"></a><var>70.5</var>if the experience is based on activities which required a license under this section.<br/>
<a id="pl.70.6"></a><var>70.6</var>(d) (e) Experience for all classifications must be obtained after January 30, 1989, <br/>
<a id="pl.70.7"></a><var>70.7</var>and must be USPAP compliant.<br/>
<br/>
<a id="bill.0.83.0"></a><a id="pl.70.8"></a><var>70.8</var>    Sec. 83. Minnesota Statutes 2009 Supplement, section 137.0225, is amended to read:<br/>
<a id="pl.70.9"></a><var>70.9</var><b>137.0225 UNIVERSITY </b><b>PROMISE </b><b>SCHOLARSHIP.</b><br/>
<a id="pl.70.10"></a><var>70.10</var>    The Board of Regents may establish a scholarship to help offset the impact of <br/>
<a id="pl.70.11"></a><var>70.11</var>rising tuition for Minnesota students from middle-income families. To be eligible for a <br/>
<a id="pl.70.12"></a><var>70.12</var>scholarship under this section, a student must be a Minnesota resident undergraduate <br/>
<a id="pl.70.13"></a><var>70.13</var>from a family that is not Pell Grant eligible with an annual adjusted gross income not <br/>
<a id="pl.70.14"></a><var>70.14</var>to exceed $100,000.<br/>
<a id="pl.70.15"></a><var>70.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.84.0"></a><a id="pl.70.16"></a><var>70.16</var>    Sec. 84. <b>[137.66] SCHOLARSHIP FUNDING PROGRAM.</b><br/>
<a id="pl.70.17"></a><var>70.17</var>As a condition of the license under section 340A.404, subdivision 4a, paragraph (a), <br/>
<a id="pl.70.18"></a><var>70.18</var>clause (3), the University of Minnesota shall deposit at least 75 percent of the revenue <br/>
<a id="pl.70.19"></a><var>70.19</var>generated through the existence of this license for scholarships under section 137.0225 for <br/>
<a id="pl.70.20"></a><var>70.20</var>Minnesota resident men and women attending the University of Minnesota.<br/>
<a id="pl.70.21"></a><var>70.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.85.0"></a><a id="pl.70.22"></a><var>70.22</var>    Sec. 85. Minnesota Statutes 2008, section 326.3382, subdivision 3, is amended to read:<br/>
<a id="pl.70.23"></a><var>70.23</var>    Subd. 3. <b>Proof of insurance.</b> (a) No license may be issued to a private detective <br/>
<a id="pl.70.24"></a><var>70.24</var>or protective agent applicant until the applicant has complied with the requirements in <br/>
<a id="pl.70.25"></a><var>70.25</var>this subdivision.<br/>
<a id="pl.70.26"></a><var>70.26</var>(b) The applicant shall execute a surety bond to the state of Minnesota in the penal <br/>
<a id="pl.70.27"></a><var>70.27</var>sum of $10,000 and file it with the board. The surety bond must be executed by a <br/>
<a id="pl.70.28"></a><var>70.28</var>company authorized to do business in the state of Minnesota, must name the applicant as <br/>
<a id="pl.70.29"></a><var>70.29</var>principal, and must state that the applicant and each of the applicant's employees shall <br/>
<a id="pl.70.30"></a><var>70.30</var>faithfully observe all of the laws of Minnesota and of the United States and shall pay all <br/>
<a id="pl.70.31"></a><var>70.31</var>damages suffered by any person by reason of a violation of law by the applicant or by the <br/>
<a id="pl.70.32"></a><var>70.32</var>commission of any willful and malicious wrong by the applicant in the course of business.<br/>
<a id="pl.71.1"></a><var>71.1</var>(c) The applicant shall furnish proof, acceptable to the board, of the applicant's <br/>
<a id="pl.71.2"></a><var>71.2</var>ability to respond in damages for liability on account of accidents or wrongdoings arising <br/>
<a id="pl.71.3"></a><var>71.3</var>out of the ownership and operation of a private detective or protective agent business. <br/>
<a id="pl.71.4"></a><var>71.4</var>Compliance with paragraph (d), (e), or (f) is satisfactory proof of financial responsibility <br/>
<a id="pl.71.5"></a><var>71.5</var>for purposes of this paragraph.<br/>
<a id="pl.71.6"></a><var>71.6</var>(d) The applicant may file with the board a certificate of insurance demonstrating <br/>
<a id="pl.71.7"></a><var>71.7</var>coverage for general liability, completed operations, and personal injury. Personal injury <br/>
<a id="pl.71.8"></a><var>71.8</var>insurance must include coverage for:<br/>
<a id="pl.71.9"></a><var>71.9</var>(1) false arrest, detention, imprisonment, and malicious prosecution;<br/>
<a id="pl.71.10"></a><var>71.10</var>(2) libel, slander, defamation, and violation of rights of privacy; and<br/>
<a id="pl.71.11"></a><var>71.11</var>(3) wrongful entry, eviction, and other invasion of rights of private occupancy.<br/>
<a id="pl.71.12"></a><var>71.12</var>The certificate must provide that the insurance may not be modified or canceled <br/>
<a id="pl.71.13"></a><var>71.13</var>unless 30 days prior notice is given to the board. In the event of a policy cancellation, <br/>
<a id="pl.71.14"></a><var>71.14</var>the insurer will send notice to the board at the same time that a cancellation request is <br/>
<a id="pl.71.15"></a><var>71.15</var>received from or a notice is sent to the insured.<br/>
<a id="pl.71.16"></a><var>71.16</var>(e) The applicant may file with the board an annual net worth statement, signed <br/>
<a id="pl.71.17"></a><var>71.17</var>by a licensed certified public accountant, evidencing that the applicant has a net worth <br/>
<a id="pl.71.18"></a><var>71.18</var>of at least the following:<br/>
<a id="pl.71.19"></a><var>71.19</var>(1) for an applicant with no employees, $10,000;<br/>
<a id="pl.71.20"></a><var>71.20</var>(2) for an applicant with one to ten employees, $15,000;<br/>
<a id="pl.71.21"></a><var>71.21</var>(3) for an applicant with 11 to 25 employees, $25,000;<br/>
<a id="pl.71.22"></a><var>71.22</var>(4) for an applicant with 26 to 50 employees, $50,000; or<br/>
<a id="pl.71.23"></a><var>71.23</var>(5) for an applicant with 51 or more employees, $100,000.<br/>
<a id="pl.71.24"></a><var>71.24</var>Data indicating with which of the above requirements an applicant must comply is <br/>
<a id="pl.71.25"></a><var>71.25</var>public data. The contents of the net worth statement are private data on individuals or <br/>
<a id="pl.71.26"></a><var>71.26</var>nonpublic data, as defined in section 
         <statute_ref>13.02</statute_ref>.  <br/>
<a id="pl.71.27"></a><var>71.27</var>(f) The applicant may file with the board an irrevocable letter of credit from a <br/>
<a id="pl.71.28"></a><var>71.28</var>financial institution acceptable to the board in the amount listed in the appropriate <br/>
<a id="pl.71.29"></a><var>71.29</var>category in paragraph (e).<br/>
<br/>
<a id="bill.0.86.0"></a><a id="pl.71.30"></a><var>71.30</var>    Sec. 86. Minnesota Statutes 2008, section 326B.33, subdivision 16, is amended to read:<br/>
<a id="pl.71.31"></a><var>71.31</var>    Subd. 16. <b>Insurance required.</b> Each contractor shall have and maintain in effect <br/>
<a id="pl.71.32"></a><var>71.32</var>general liability insurance, which includes premises and operations insurance and products <br/>
<a id="pl.71.33"></a><var>71.33</var>and completed operations insurance, with limits of at least $100,000 per occurrence, <br/>
<a id="pl.71.34"></a><var>71.34</var>$300,000 aggregate limit for bodily injury, and property damage insurance with limits of <br/>
<a id="pl.71.35"></a><var>71.35</var>at least $50,000 or a policy with a single limit for bodily injury and property damage of <br/>
<a id="pl.72.1"></a><var>72.1</var>$300,000 per occurrence and $300,000 aggregate limits. Such insurance shall be written <br/>
<a id="pl.72.2"></a><var>72.2</var>by an insurer licensed to do business in the state of Minnesota and each contractor shall <br/>
<a id="pl.72.3"></a><var>72.3</var>maintain on file with the commissioner a certificate evidencing such insurance which <br/>
<a id="pl.72.4"></a><var>72.4</var>provides that such insurance shall not be canceled without the insurer first giving 15 <br/>
<a id="pl.72.5"></a><var>72.5</var>days written notice to the commissioner of such cancellation. In the event of a policy <br/>
<a id="pl.72.6"></a><var>72.6</var>cancellation, the insurer shall send written notice to the commissioner at the same time <br/>
<a id="pl.72.7"></a><var>72.7</var>that a cancellation request is received from or a notice is sent to the insured.<br/>
<br/>
<a id="bill.0.87.0"></a><a id="pl.72.8"></a><var>72.8</var>    Sec. 87. Minnesota Statutes 2009 Supplement, section 326B.46, subdivision 2, is <br/>
<a id="pl.72.9"></a><var>72.9</var>amended to read:<br/>
<a id="pl.72.10"></a><var>72.10</var>    Subd. 2. <b>Bond; insurance.</b> Any person contracting to do plumbing work must give <br/>
<a id="pl.72.11"></a><var>72.11</var>bond to the state in the amount of at least $25,000 for (1) all plumbing work entered <br/>
<a id="pl.72.12"></a><var>72.12</var>into within the state or (2) all plumbing work and subsurface sewage treatment work <br/>
<a id="pl.72.13"></a><var>72.13</var>entered into within the state. If the bond is for both plumbing work and subsurface sewage <br/>
<a id="pl.72.14"></a><var>72.14</var>treatment work, the bond must comply with the requirements of this section and section <br/>
<statute_ref><a id="pl.72.15"></a><var>72.15</var>115.56, subdivision 2
         </statute_ref>, paragraph (e). The bond shall be for the benefit of persons injured <br/>
<a id="pl.72.16"></a><var>72.16</var>or suffering financial loss by reason of failure to comply with the requirements of the <br/>
<a id="pl.72.17"></a><var>72.17</var>State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage <br/>
<a id="pl.72.18"></a><var>72.18</var>treatment work, financial loss by reason of failure to comply with the requirements of <br/>
<a id="pl.72.19"></a><var>72.19</var>sections 
         <statute_ref>115.55</statute_ref> and 
         <statute_ref>115.56</statute_ref>. The bond shall be filed with the commissioner and shall be <br/>
<a id="pl.72.20"></a><var>72.20</var>written by a corporate surety licensed to do business in the state. <br/>
<a id="pl.72.21"></a><var>72.21</var>    In addition, each applicant for a master plumber license or restricted master plumber <br/>
<a id="pl.72.22"></a><var>72.22</var>license, or renewal thereof, shall provide evidence of public liability insurance, including <br/>
<a id="pl.72.23"></a><var>72.23</var>products liability insurance with limits of at least $50,000 per person and $100,000 per <br/>
<a id="pl.72.24"></a><var>72.24</var>occurrence and property damage insurance with limits of at least $10,000. The insurance <br/>
<a id="pl.72.25"></a><var>72.25</var>shall be written by an insurer licensed to do business in the state of Minnesota and <br/>
<a id="pl.72.26"></a><var>72.26</var>each licensed master plumber shall maintain on file with the commissioner a certificate <br/>
<a id="pl.72.27"></a><var>72.27</var>evidencing the insurance providing that the insurance shall not be canceled without the <br/>
<a id="pl.72.28"></a><var>72.28</var>insurer first giving 15 days written notice to the commissioner. The term of the insurance <br/>
<a id="pl.72.29"></a><var>72.29</var>shall be concurrent with the term of the license. In the event of a policy cancellation, the <br/>
<a id="pl.72.30"></a><var>72.30</var>insurer shall send written notice to the commissioner at the same time that a cancellation <br/>
<a id="pl.72.31"></a><var>72.31</var>request is received from or a notice is sent to the insured.<br/>
<br/>
<a id="bill.0.88.0"></a><a id="pl.72.32"></a><var>72.32</var>    Sec. 88. Minnesota Statutes 2008, section 326B.46, is amended by adding a <br/>
<a id="pl.72.33"></a><var>72.33</var>subdivision to read:<br/>
<a id="pl.73.1"></a><var>73.1</var>    Subd. 6. <b>Well contractor exempt from licensing and bond; conditions.</b> No <br/>
<a id="pl.73.2"></a><var>73.2</var>license, registration, or bond under sections 326B.42 to 326B.49 is required of a well <br/>
<a id="pl.73.3"></a><var>73.3</var>contractor or a limited well/boring contractor who is licensed and bonded under section <br/>
<a id="pl.73.4"></a><var>73.4</var>103I.525 or 103I.531 and is engaged in the work or business of installing (1) water service <br/>
<a id="pl.73.5"></a><var>73.5</var>pipe from a well to a pressure tank or a frost-free water hydrant with an antisiphon device <br/>
<a id="pl.73.6"></a><var>73.6</var>which is located entirely outside of a structure requiring potable water, or (2) a temporary <br/>
<a id="pl.73.7"></a><var>73.7</var>shut-off valve on a well water service pipe. For the purposes of this subdivision, <br/>
<a id="pl.73.8"></a><var>73.8</var>"temporary" means a time period not to exceed six months. This subdivision expires one <br/>
<a id="pl.73.9"></a><var>73.9</var>year after the date of enactment.<br/>
<a id="pl.73.10"></a><var>73.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.89.0"></a><a id="pl.73.11"></a><var>73.11</var>    Sec. 89. Minnesota Statutes 2008, section 326B.56, subdivision 2, is amended to read:<br/>
<a id="pl.73.12"></a><var>73.12</var>    Subd. 2. <b>Insurance.</b> (a) Each applicant for a water conditioning contractor or <br/>
<a id="pl.73.13"></a><var>73.13</var>installer license or renewal thereof who is required by any political subdivision to <br/>
<a id="pl.73.14"></a><var>73.14</var>maintain insurance to obtain or maintain the license may comply with any political <br/>
<a id="pl.73.15"></a><var>73.15</var>subdivision's insurance requirement by maintaining the insurance described in paragraph <br/>
<a id="pl.73.16"></a><var>73.16</var>(b). No applicant for a water conditioning contractor or installer license who maintains the <br/>
<a id="pl.73.17"></a><var>73.17</var>insurance described in paragraph (b) shall be otherwise required to meet the insurance <br/>
<a id="pl.73.18"></a><var>73.18</var>requirements of any political subdivision.<br/>
<a id="pl.73.19"></a><var>73.19</var>    (b) The insurance shall provide coverage, including products liability coverage, <br/>
<a id="pl.73.20"></a><var>73.20</var>for all damages in connection with licensed work for which the licensee is liable, with <br/>
<a id="pl.73.21"></a><var>73.21</var>personal damage limits of at least $50,000 per person and $100,000 per occurrence and <br/>
<a id="pl.73.22"></a><var>73.22</var>property damage insurance with limits of at least $10,000. The insurance shall be written <br/>
<a id="pl.73.23"></a><var>73.23</var>by an insurer licensed to do business in this state and a certificate evidencing the insurance <br/>
<a id="pl.73.24"></a><var>73.24</var>shall be filed with the commissioner. The insurance must remain in effect at all times while <br/>
<a id="pl.73.25"></a><var>73.25</var>the application is pending and while the license is in effect. The insurance shall not be <br/>
<a id="pl.73.26"></a><var>73.26</var>canceled without the insurer first giving 15 days' written notice to the commissioner. In the <br/>
<a id="pl.73.27"></a><var>73.27</var>event of a policy cancellation, the insurer shall send written notice to the commissioner at <br/>
<a id="pl.73.28"></a><var>73.28</var>the same time that a cancellation request is received from or a notice is sent to the insured.<br/>
<br/>
<a id="bill.0.90.0"></a><a id="pl.73.29"></a><var>73.29</var>    Sec. 90. Minnesota Statutes 2008, section 326B.86, subdivision 2, is amended to read:<br/>
<a id="pl.73.30"></a><var>73.30</var>    Subd. 2. <b>Insurance.</b> Each licensee shall have and maintain in effect commercial <br/>
<a id="pl.73.31"></a><var>73.31</var>general liability insurance, which includes premises and operations insurance and products <br/>
<a id="pl.73.32"></a><var>73.32</var>and completed operations insurance, with limits of at least $100,000 per occurrence, <br/>
<a id="pl.73.33"></a><var>73.33</var>$300,000 aggregate limit for bodily injury, and property damage insurance with limits of <br/>
<a id="pl.73.34"></a><var>73.34</var>at least $25,000 or a policy with a single limit for bodily injury and property damage of <br/>
<a id="pl.74.1"></a><var>74.1</var>$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written by <br/>
<a id="pl.74.2"></a><var>74.2</var>an insurer licensed to do business in this state. Each licensee shall maintain on file with <br/>
<a id="pl.74.3"></a><var>74.3</var>the commissioner a certificate evidencing the insurance which provides that the insurance <br/>
<a id="pl.74.4"></a><var>74.4</var>shall not be canceled without the insurer first giving 15 days' written notice of cancellation <br/>
<a id="pl.74.5"></a><var>74.5</var>to the commissioner. In the event of a policy cancellation, the insurer shall send written <br/>
<a id="pl.74.6"></a><var>74.6</var>notice to the commissioner at the same time that a cancellation request is received from or <br/>
<a id="pl.74.7"></a><var>74.7</var>a notice is sent to the insured. The commissioner may increase the minimum amount of <br/>
<a id="pl.74.8"></a><var>74.8</var>insurance required for any licensee or class of licensees if the commissioner considers it to <br/>
<a id="pl.74.9"></a><var>74.9</var>be in the public interest and necessary to protect the interests of Minnesota consumers.<br/>
<br/>
<a id="bill.0.91.0"></a><a id="pl.74.10"></a><var>74.10</var>    Sec. 91. Minnesota Statutes 2008, section 326B.921, subdivision 6, is amended to read:<br/>
<a id="pl.74.11"></a><var>74.11</var>    Subd. 6. <b>Insurance.</b> In addition to the bond described in subdivision 5, each <br/>
<a id="pl.74.12"></a><var>74.12</var>applicant for a high pressure pipefitting business license or renewal shall have in force <br/>
<a id="pl.74.13"></a><var>74.13</var>public liability insurance, including products liability insurance, with limits of at least <br/>
<a id="pl.74.14"></a><var>74.14</var>$100,000 per person and $300,000 per occurrence and property damage insurance with <br/>
<a id="pl.74.15"></a><var>74.15</var>limits of at least $50,000.<br/>
<a id="pl.74.16"></a><var>74.16</var>    The insurance must be kept in force for the entire term of the high pressure <br/>
<a id="pl.74.17"></a><var>74.17</var>pipefitting business license, and the license shall be suspended by the department if at any <br/>
<a id="pl.74.18"></a><var>74.18</var>time the insurance is not in force.<br/>
<a id="pl.74.19"></a><var>74.19</var>    The insurance must be written by an insurer licensed to do business in the state and <br/>
<a id="pl.74.20"></a><var>74.20</var>shall be in lieu of any other insurance required by any subdivision of government for high <br/>
<a id="pl.74.21"></a><var>74.21</var>pressure pipefitting. Each person holding a high pressure pipefitting business license shall <br/>
<a id="pl.74.22"></a><var>74.22</var>maintain on file with the department a certificate evidencing the insurance. Any purported <br/>
<a id="pl.74.23"></a><var>74.23</var>cancellation of insurance shall not be effective without the insurer first giving 30 days' <br/>
<a id="pl.74.24"></a><var>74.24</var>written notice to the department. In the event of a policy cancellation, the insurer shall <br/>
<a id="pl.74.25"></a><var>74.25</var>send written notice to the commissioner at the same time that a cancellation request is <br/>
<a id="pl.74.26"></a><var>74.26</var>received from or a notice is sent to the insured.<br/>
<br/>
<a id="bill.0.92.0"></a><a id="pl.74.27"></a><var>74.27</var>    Sec. 92. Minnesota Statutes 2008, section 327B.04, subdivision 4, is amended to read:<br/>
<a id="pl.74.28"></a><var>74.28</var>    Subd. 4.  <b>License prerequisites.</b> No application shall be granted nor license issued <br/>
<a id="pl.74.29"></a><var>74.29</var>until the applicant proves to the commissioner that: <br/>
<a id="pl.74.30"></a><var>74.30</var>    (a) the applicant has a permanent, established place of business at each licensed <br/>
<a id="pl.74.31"></a><var>74.31</var>location. An "established place of business" means a permanent enclosed building other <br/>
<a id="pl.74.32"></a><var>74.32</var>than a residence, or a commercial office space, either owned by the applicant or leased by <br/>
<a id="pl.74.33"></a><var>74.33</var>the applicant for a term of at least one year, located in an area where zoning regulations <br/>
<a id="pl.74.34"></a><var>74.34</var>allow commercial activity, and where the books, records and files necessary to conduct <br/>
<a id="pl.75.1"></a><var>75.1</var>the business are kept and maintained. The owner of a licensed manufactured home park <br/>
<a id="pl.75.2"></a><var>75.2</var>who resides in or adjacent to the park may use the residence as the established place of <br/>
<a id="pl.75.3"></a><var>75.3</var>business required by this subdivision, unless prohibited by local zoning ordinance. <br/>
<a id="pl.75.4"></a><var>75.4</var>    If a license is granted, the licensee may use unimproved lots and premises for sale, <br/>
<a id="pl.75.5"></a><var>75.5</var>storage, and display of manufactured homes, if the licensee first notifies the commissioner <br/>
<a id="pl.75.6"></a><var>75.6</var>in writing; <br/>
<a id="pl.75.7"></a><var>75.7</var>    (b) if the applicant desires to sell, solicit or advertise the sale of new manufactured <br/>
<a id="pl.75.8"></a><var>75.8</var>homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor <br/>
<a id="pl.75.9"></a><var>75.9</var>of the new manufactured home it proposes to deal in; <br/>
<a id="pl.75.10"></a><var>75.10</var>    (c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each <br/>
<a id="pl.75.11"></a><var>75.11</var>agency and each subagency location that bears the applicant's name and the name under <br/>
<a id="pl.75.12"></a><var>75.12</var>which the applicant will be licensed and do business in this state. Each bond is for the <br/>
<a id="pl.75.13"></a><var>75.13</var>protection of consumer customers, and must be executed by the applicant as principal and <br/>
<a id="pl.75.14"></a><var>75.14</var>issued by a surety company admitted to do business in this state. Each bond shall be <br/>
<a id="pl.75.15"></a><var>75.15</var>exclusively for the purpose of reimbursing consumer customers and shall be conditioned <br/>
<a id="pl.75.16"></a><var>75.16</var>upon the faithful compliance by the applicant with all of the laws and rules of this state <br/>
<a id="pl.75.17"></a><var>75.17</var>pertaining to the applicant's business as a dealer or manufacturer, including sections <br/>
<statute_ref><a id="pl.75.18"></a><var>75.18</var>325D.44
         </statute_ref>, 
         <statute_ref>325F.67</statute_ref> and 
         <statute_ref>325F.69</statute_ref>, and upon the applicant's faithful performance of all its <br/>
<a id="pl.75.19"></a><var>75.19</var>legal obligations to consumer customers; and (2) a certificate of liability insurance in <br/>
<a id="pl.75.20"></a><var>75.20</var>the amount of $1,000,000 that provides aggregate coverage for the agency and each <br/>
<a id="pl.75.21"></a><var>75.21</var>subagency location. In the event of a policy cancellation, the insurer shall send written <br/>
<a id="pl.75.22"></a><var>75.22</var>notice to the commissioner at the same time that a cancellation request is received from <br/>
<a id="pl.75.23"></a><var>75.23</var>or a notice is sent to the insured; <br/>
<a id="pl.75.24"></a><var>75.24</var>    (d) the applicant has established a trust account as required by section 
         <statute_ref>327B.08, <br/>
<a id="pl.75.25"></a><var>75.25</var>subdivision 3
         </statute_ref>, unless the applicant states in writing its intention to limit its business to <br/>
<a id="pl.75.26"></a><var>75.26</var>selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and <br/>
<a id="pl.75.27"></a><var>75.27</var>    (e) the applicant has provided evidence of having had at least two years' prior <br/>
<a id="pl.75.28"></a><var>75.28</var>experience in the sale of manufactured homes, working for a licensed dealer. <br/>
<br/>
<a id="bill.0.93.0"></a><a id="pl.75.29"></a><var>75.29</var>    Sec. 93. <b>[332.3351] EXEMPTION FROM LICENSURE.</b><br/>
<a id="pl.75.30"></a><var>75.30</var>A collection agency shall be exempt from the licensing and registration requirements <br/>
<a id="pl.75.31"></a><var>75.31</var>of this chapter if all of the following conditions are met:<br/>
<a id="pl.75.32"></a><var>75.32</var>(1) the agency is located in another state that regulates and licenses collection <br/>
<a id="pl.75.33"></a><var>75.33</var>agencies, but does not require a Minnesota collection agency to obtain a license to collect <br/>
<a id="pl.75.34"></a><var>75.34</var>debts in their state if the agency's collection activities are limited in the same manner;<br/>
<a id="pl.76.1"></a><var>76.1</var>(2) the agency's collection activities are limited to collecting debts not incurred in <br/>
<a id="pl.76.2"></a><var>76.2</var>this state from consumers located in this state; and<br/>
<a id="pl.76.3"></a><var>76.3</var>(3) the agency's collection activities in Minnesota are conducted by means of <br/>
<a id="pl.76.4"></a><var>76.4</var>interstate communications, including telephone, mail, electronic mail, or facsimile <br/>
<a id="pl.76.5"></a><var>76.5</var>transmission.<br/>
<a id="pl.76.6"></a><var>76.6</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2011.<br/>
<br/>
<a id="bill.0.94.0"></a><a id="pl.76.7"></a><var>76.7</var>    Sec. 94. Minnesota Statutes 2008, section 332.34, is amended to read:<br/>
<a id="pl.76.8"></a><var>76.8</var><b>332.34 BOND.</b><br/>
<a id="pl.76.9"></a><var>76.9</var>The commissioner of commerce shall require each collection agency licensee to <br/>
<a id="pl.76.10"></a><var>76.10</var>annually file and maintain in force a corporate surety bond, in a form to be prescribed <br/>
<a id="pl.76.11"></a><var>76.11</var>by, and acceptable to, the commissioner, and in a sum of at least $20,000 $50,000 plus <br/>
<a id="pl.76.12"></a><var>76.12</var>an additional $5,000 for each $100,000 received by the collection agency from debtors <br/>
<a id="pl.76.13"></a><var>76.13</var>located in Minnesota during the previous calendar year, less commissions earned by the <br/>
<a id="pl.76.14"></a><var>76.14</var>collection agency on those collections for the previous calendar year. The total amount of <br/>
<a id="pl.76.15"></a><var>76.15</var>the bond shall not exceed $100,000. A collection agency may deposit cash in and with a <br/>
<a id="pl.76.16"></a><var>76.16</var>depository acceptable to the commissioner in an amount and in the manner prescribed and <br/>
<a id="pl.76.17"></a><var>76.17</var>approved by the commissioner in lieu of a bond.<br/>
<a id="pl.76.18"></a><var>76.18</var><b>EFFECTIVE DATE.</b>This section is effective for bonds obtained or renewed after <br/>
<a id="pl.76.19"></a><var>76.19</var>January 1, 2011.<br/>
<br/>
<a id="bill.0.95.0"></a><a id="pl.76.20"></a><var>76.20</var>    Sec. 95. Minnesota Statutes 2009 Supplement, section 340A.404, subdivision 4a, <br/>
<a id="pl.76.21"></a><var>76.21</var>is amended to read:<br/>
<a id="pl.76.22"></a><var>76.22</var>    Subd. 4a. <b>Publicly owned recreation; entertainment facilities.</b> (a) <br/>
<a id="pl.76.23"></a><var>76.23</var>Notwithstanding any other law, local ordinance, or charter provision, the commissioner <br/>
<a id="pl.76.24"></a><var>76.24</var>may issue on-sale intoxicating liquor licenses:<br/>
<a id="pl.76.25"></a><var>76.25</var>    (1) to the state agency administratively responsible for, or to an entity holding a <br/>
<a id="pl.76.26"></a><var>76.26</var>concession or facility management contract with such agency for beverage sales at, the <br/>
<a id="pl.76.27"></a><var>76.27</var>premises of any Giants Ridge Recreation Area building or recreational improvement area <br/>
<a id="pl.76.28"></a><var>76.28</var>owned by the state in the city of Biwabik, St. Louis County;<br/>
<a id="pl.76.29"></a><var>76.29</var>    (2) to the state agency administratively responsible for, or to an entity holding a <br/>
<a id="pl.76.30"></a><var>76.30</var>concession or facility management contract with such agency for beverage sales at, the <br/>
<a id="pl.76.31"></a><var>76.31</var>premises of any Ironworld Discovery Center building or facility owned by the state at <br/>
<a id="pl.76.32"></a><var>76.32</var>Chisholm;<br/>
<a id="pl.77.1"></a><var>77.1</var>    (3) to the Board of Regents of the University of Minnesota for events at Northrop <br/>
<a id="pl.77.2"></a><var>77.2</var>Auditorium, the intercollegiate football stadium, or at no more than seven other locations <br/>
<a id="pl.77.3"></a><var>77.3</var>within the boundaries of the University of Minnesota, provided that the Board of Regents <br/>
<a id="pl.77.4"></a><var>77.4</var>has approved an application for a license for the specified location and provided that a <br/>
<a id="pl.77.5"></a><var>77.5</var>license for an arena or stadium location is void unless it requires the sale or service of <br/>
<a id="pl.77.6"></a><var>77.6</var>intoxicating liquor throughout the arena or stadium if intoxicating liquor is sold or served <br/>
<a id="pl.77.7"></a><var>77.7</var>anywhere in the arena or stadium in a public portion consisting of at least one-third of <br/>
<a id="pl.77.8"></a><var>77.8</var>the general seating of a stadium or arena, and provided that areas be designated where <br/>
<a id="pl.77.9"></a><var>77.9</var>alcohol is not served, to be referred to as family sections; and<br/>
<a id="pl.77.10"></a><var>77.10</var>(4) to the Duluth Entertainment and Convention Center Authority for beverage <br/>
<a id="pl.77.11"></a><var>77.11</var>sales on the premises of the Duluth Entertainment and Convention Center Arena during <br/>
<a id="pl.77.12"></a><var>77.12</var>intercollegiate hockey games.<br/>
<a id="pl.77.13"></a><var>77.13</var>    The commissioner shall charge a fee for licenses issued under this subdivision in an <br/>
<a id="pl.77.14"></a><var>77.14</var>amount comparable to the fee for comparable licenses issued in surrounding cities.<br/>
<a id="pl.77.15"></a><var>77.15</var>    (b) No alcoholic beverage may be sold or served at TCF Bank Stadium unless the <br/>
<a id="pl.77.16"></a><var>77.16</var>Board of Regents holds an on-sale intoxicating liquor license for the stadium as provided <br/>
<a id="pl.77.17"></a><var>77.17</var>in paragraph (a), clause (3).<br/>
<a id="pl.77.18"></a><var>77.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.96.0"></a><a id="pl.77.19"></a><var>77.19</var>    Sec. 96. Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to read:<br/>
<a id="pl.77.20"></a><var>77.20</var>    Subdivision 1. <b>Insurance required.</b> (a) No retail license may be issued, maintained <br/>
<a id="pl.77.21"></a><var>77.21</var>or renewed unless the applicant demonstrates proof of financial responsibility with regard <br/>
<a id="pl.77.22"></a><var>77.22</var>to liability imposed by section 
         <statute_ref>340A.801</statute_ref>. The issuing authority must submit to the <br/>
<a id="pl.77.23"></a><var>77.23</var>commissioner the applicant's proof of financial responsibility. This subdivision does not <br/>
<a id="pl.77.24"></a><var>77.24</var>prohibit a local unit of government from requiring higher insurance or bond coverages, or <br/>
<a id="pl.77.25"></a><var>77.25</var>a larger deposit of cash or securities. The minimum requirement for proof of financial <br/>
<a id="pl.77.26"></a><var>77.26</var>responsibility may be given by filing: <br/>
<a id="pl.77.27"></a><var>77.27</var>(1) a certificate that there is in effect for the license period an insurance policy <br/>
<a id="pl.77.28"></a><var>77.28</var>issued by an insurer required to be licensed under section 
         <statute_ref>60A.07, subdivision 4</statute_ref>, or by <br/>
<a id="pl.77.29"></a><var>77.29</var>an insurer recognized as an eligible surplus lines carrier pursuant to section 
         <statute_ref>60A.206</statute_ref> or <br/>
<a id="pl.77.30"></a><var>77.30</var>pool providing at least $50,000 of coverage because of bodily injury to any one person in <br/>
<a id="pl.77.31"></a><var>77.31</var>any one occurrence, $100,000 because of bodily injury to two or more persons in any one <br/>
<a id="pl.77.32"></a><var>77.32</var>occurrence, $10,000 because of injury to or destruction of property of others in any one <br/>
<a id="pl.77.33"></a><var>77.33</var>occurrence, $50,000 for loss of means of support of any one person in any one occurrence, <br/>
<a id="pl.77.34"></a><var>77.34</var>and $100,000 for loss of means of support of two or more persons in any one occurrence; <br/>
<a id="pl.77.35"></a><var>77.35</var>(2) a bond of a surety company with minimum coverages as provided in clause (1); or<br/>
<a id="pl.78.1"></a><var>78.1</var>(3) a certificate of the commissioner of management and budget that the licensee <br/>
<a id="pl.78.2"></a><var>78.2</var>has deposited with the commissioner of management and budget $100,000 in cash or <br/>
<a id="pl.78.3"></a><var>78.3</var>securities which may legally be purchased by savings banks or for trust funds having a <br/>
<a id="pl.78.4"></a><var>78.4</var>market value of $100,000.<br/>
<a id="pl.78.5"></a><var>78.5</var>(b) This subdivision does not prohibit an insurer from providing the coverage <br/>
<a id="pl.78.6"></a><var>78.6</var>required by this subdivision in combination with other insurance coverage.<br/>
<a id="pl.78.7"></a><var>78.7</var>(c) An annual aggregate policy limit for dram shop insurance of not less than <br/>
<a id="pl.78.8"></a><var>78.8</var>$300,000 per policy year may be included in the policy provisions.<br/>
<a id="pl.78.9"></a><var>78.9</var>(d) A liability insurance policy required by this section must provide that it may <br/>
<a id="pl.78.10"></a><var>78.10</var>not be canceled for:<br/>
<a id="pl.78.11"></a><var>78.11</var>(1) any cause, except for nonpayment of premium, by either the insured or the <br/>
<a id="pl.78.12"></a><var>78.12</var>insurer unless the canceling party has first given 30 60 days' notice in writing to the <br/>
<a id="pl.78.13"></a><var>78.13</var>issuing authority insured of intent to cancel the policy; and<br/>
<a id="pl.78.14"></a><var>78.14</var>(2) nonpayment of premium unless the canceling party has first given ten days' <br/>
<a id="pl.78.15"></a><var>78.15</var>notice in writing to the issuing authority insured of intent to cancel the policy.; and<br/>
<a id="pl.78.16"></a><var>78.16</var>(3) in the event of a policy cancellation, the insurer will send notice to the issuing <br/>
<a id="pl.78.17"></a><var>78.17</var>authority at the same time that a cancellation request is received from or a notice is sent <br/>
<a id="pl.78.18"></a><var>78.18</var>to the insured.<br/>
<br/>
<a id="bill.0.97.0"></a><a id="pl.78.19"></a><var>78.19</var>    Sec. 97. Minnesota Statutes 2008, section 471.61, subdivision 2b, is amended to read:<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 2b. <b>Insurance continuation.</b> A unit of local government must allow a former <br/>
<a id="pl.78.21"></a><var>78.21</var>employee and the employee's dependents to continue to participate indefinitely in the <br/>
<a id="pl.78.22"></a><var>78.22</var>employer-sponsored hospital, medical, and dental insurance group that the employee <br/>
<a id="pl.78.23"></a><var>78.23</var>participated in immediately before retirement, under the following conditions:<br/>
<a id="pl.78.24"></a><var>78.24</var>(a) The continuation requirement of this subdivision applies only to a former <br/>
<a id="pl.78.25"></a><var>78.25</var>employee who is receiving a disability benefit or an annuity from a Minnesota public <br/>
<a id="pl.78.26"></a><var>78.26</var>pension plan other than a volunteer firefighter plan, or who has met age and service <br/>
<a id="pl.78.27"></a><var>78.27</var>requirements necessary to receive an annuity from such a plan.<br/>
<a id="pl.78.28"></a><var>78.28</var>(b) Until the former employee reaches age 65, the former employee and dependents <br/>
<a id="pl.78.29"></a><var>78.29</var>must be pooled in the same group as active employees for purposes of establishing <br/>
<a id="pl.78.30"></a><var>78.30</var>premiums and coverage for hospital, medical, and dental insurance. However, a former <br/>
<a id="pl.78.31"></a><var>78.31</var>employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former <br/>
<a id="pl.78.32"></a><var>78.32</var>employee's disability and for whom Medicare's obligation to pay claims is primary, and <br/>
<a id="pl.78.33"></a><var>78.33</var>the former employee's dependents, must be pooled in the same group for purposes of this <br/>
<a id="pl.78.34"></a><var>78.34</var>paragraph as former employees who have reached age 65.<br/>
<a id="pl.79.1"></a><var>79.1</var>(c) A former employee may receive dependent coverage only if the employee <br/>
<a id="pl.79.2"></a><var>79.2</var>received dependent coverage immediately before leaving employment. This subdivision <br/>
<a id="pl.79.3"></a><var>79.3</var>does not require dependent coverage to continue after the death of the former employee. <br/>
<a id="pl.79.4"></a><var>79.4</var>For purposes of this subdivision, "dependent" has the same meaning for former employees <br/>
<a id="pl.79.5"></a><var>79.5</var>as it does for active employees in the unit of local government.<br/>
<a id="pl.79.6"></a><var>79.6</var>(d) Coverage for a former employee and dependents may not discriminate on the <br/>
<a id="pl.79.7"></a><var>79.7</var>basis of evidence of insurability or preexisting conditions unless identical conditions are <br/>
<a id="pl.79.8"></a><var>79.8</var>imposed on active employees in the group that the employee left.<br/>
<a id="pl.79.9"></a><var>79.9</var>(e) The former employee must pay the entire premium for continuation coverage, <br/>
<a id="pl.79.10"></a><var>79.10</var>except as otherwise provided in a collective bargaining agreement or personnel policy. <br/>
<a id="pl.79.11"></a><var>79.11</var>A unit of local government may discontinue coverage if a former employee fails to pay <br/>
<a id="pl.79.12"></a><var>79.12</var>the premium within the deadline provided for payment of premiums under federal law <br/>
<a id="pl.79.13"></a><var>79.13</var>governing insurance continuation.<br/>
<a id="pl.79.14"></a><var>79.14</var>(f) An employer must notify an employee before termination of employment of the <br/>
<a id="pl.79.15"></a><var>79.15</var>options available under this subdivision, and of the deadline for electing to continue <br/>
<a id="pl.79.16"></a><var>79.16</var>to participate.<br/>
<a id="pl.79.17"></a><var>79.17</var>(g) A former employee must notify the employer of intent to participate within <br/>
<a id="pl.79.18"></a><var>79.18</var>the deadline provided for notice of insurance continuation under federal law. A former <br/>
<a id="pl.79.19"></a><var>79.19</var>employee who does not elect to continue participation does not have a right to reenter <br/>
<a id="pl.79.20"></a><var>79.20</var>the employer's group insurance program.<br/>
<a id="pl.79.21"></a><var>79.21</var>(h) A former employee who initially selects dependent coverage may later drop <br/>
<a id="pl.79.22"></a><var>79.22</var>dependent coverage while retaining individual coverage. A former employee may not <br/>
<a id="pl.79.23"></a><var>79.23</var>drop individual coverage and retain dependent coverage.<br/>
<a id="pl.79.24"></a><var>79.24</var>(i) This subdivision does not limit rights granted to former employees under other <br/>
<a id="pl.79.25"></a><var>79.25</var>state or federal law, or under collective bargaining agreements or personnel plans.<br/>
<a id="pl.79.26"></a><var>79.26</var>(j) Unless otherwise provided by a collective bargaining agreement, if retired <br/>
<a id="pl.79.27"></a><var>79.27</var>employees were not permitted to remain in the active employee group prior to August <br/>
<a id="pl.79.28"></a><var>79.28</var>1, 1992, a public employer may assess active employees through payroll deduction for <br/>
<a id="pl.79.29"></a><var>79.29</var>all or part of the additional premium costs from the inclusion of retired employees in the <br/>
<a id="pl.79.30"></a><var>79.30</var>active employee group. This paragraph does not apply to employees covered by section <br/>
<statute_ref><a id="pl.79.31"></a><var>79.31</var>179A.03, subdivision 7
         </statute_ref>.  <br/>
<a id="pl.79.32"></a><var>79.32</var>(k) Notwithstanding section 
         <statute_ref>179A.20, subdivision 2a</statute_ref>, insurance continuation under <br/>
<a id="pl.79.33"></a><var>79.33</var>this subdivision may be provided for in a collective bargaining agreement or personnel <br/>
<a id="pl.79.34"></a><var>79.34</var>policy.  <br/>
<a id="pl.79.35"></a><var>79.35</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2010, and applies to <br/>
<a id="pl.79.36"></a><var>79.36</var>coverage in existence on or after that date.<br/>
<br/>
<a id="bill.0.98.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 98. Minnesota Statutes 2008, section 514.20, is amended to read:<br/>
<a id="pl.80.2"></a><var>80.2</var><b>514.20 SALE.</b><br/>
<a id="pl.80.3"></a><var>80.3</var>If any sum secured by such lien be not paid within 90 days after it becomes due, the <br/>
<a id="pl.80.4"></a><var>80.4</var>lienholder may sell the property and out of the proceeds of such sale there shall be paid, <br/>
<a id="pl.80.5"></a><var>80.5</var>first, the disbursements aforesaid; second, all charges against the property paid by such <br/>
<a id="pl.80.6"></a><var>80.6</var>person to any other person; and, third, the total indebtedness then secured by the lien. The <br/>
<a id="pl.80.7"></a><var>80.7</var>remainder, if any, shall be paid on demand to the owner or other person entitled thereto. If <br/>
<a id="pl.80.8"></a><var>80.8</var>the property subject to the lien is a motor vehicle registered in this state and subject to a <br/>
<a id="pl.80.9"></a><var>80.9</var>certificate of title, then the lienholder must provide written notice, by registered certified <br/>
<a id="pl.80.10"></a><var>80.10</var>mail, to all secured creditors listed on the certificate of title 45 days before the lienholder's <br/>
<a id="pl.80.11"></a><var>80.11</var>right to sell the motor vehicle is considered effective. The notice must state the name, <br/>
<a id="pl.80.12"></a><var>80.12</var>address, and telephone number of the lienholder, the amount of money owed, and the rate <br/>
<a id="pl.80.13"></a><var>80.13</var>at which storage charges, if any, are accruing. Costs for registered certified mail and <br/>
<a id="pl.80.14"></a><var>80.14</var>other reasonable costs related to complying with this notice provision constitute "lawful <br/>
<a id="pl.80.15"></a><var>80.15</var>charges" pursuant to section 
         <statute_ref>514.19</statute_ref>. Failure to comply with the notice provision in this <br/>
<a id="pl.80.16"></a><var>80.16</var>section renders any lien created by this chapter ineffective against any secured party listed <br/>
<a id="pl.80.17"></a><var>80.17</var>on the certificate of title of the motor vehicle involved.  <br/>
<a id="pl.80.18"></a><var>80.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.80.19"></a><var>80.19</var>and applies to notices mailed on or after that date, provided however that it is also <br/>
<a id="pl.80.20"></a><var>80.20</var>permissible to send notices under this section by registered mail prior to August 1, 2010, <br/>
<a id="pl.80.21"></a><var>80.21</var>and the costs of those notices are lawful charges under this section.<br/>
<br/>
<a id="bill.0.99.0"></a><a id="pl.80.22"></a><var>80.22</var>    Sec. 99. Laws 2007, chapter 147, article 12, section 14, is amended to read:<br/>
<a id="pl.80.23"></a><var>80.23</var>    Sec. 14. <b>AGRICULTURAL COOPERATIVE HEALTH PLAN FOR </b><br/>
<a id="pl.80.24"></a><var>80.24</var><b>FARMERS.</b><br/>
<a id="pl.80.25"></a><var>80.25</var>    Subdivision 1. <b>Pilot project requirements.</b> Notwithstanding contrary provisions of <br/>
<a id="pl.80.26"></a><var>80.26</var>Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project <br/>
<a id="pl.80.27"></a><var>80.27</var>administered by a trust sponsored by one or more agricultural cooperatives organized <br/>
<a id="pl.80.28"></a><var>80.28</var>under Minnesota Statutes, chapter 308A or 308B, or under a federal charter for the <br/>
<a id="pl.80.29"></a><var>80.29</var>purpose of offering health coverage to members of the cooperatives and their families, <br/>
<a id="pl.80.30"></a><var>80.30</var>provided the project satisfies the other requirements of Minnesota Statutes, chapter 62H:<br/>
<a id="pl.80.31"></a><var>80.31</var>    (1) Minnesota Statutes, section 
         <statute_ref>62H.02</statute_ref>, paragraph (b), does not apply;<br/>
<a id="pl.80.32"></a><var>80.32</var>    (2) the notice period required under Minnesota Statutes, section 
         <statute_ref>62H.02</statute_ref>, paragraph <br/>
<a id="pl.80.33"></a><var>80.33</var>(e), is 90 days;<br/>
<a id="pl.81.1"></a><var>81.1</var>    (3) a joint self-insurance plan may elect to treat the sale of a health plan to or for <br/>
<a id="pl.81.2"></a><var>81.2</var>an employer that has only one eligible employee who has not waived coverage as the <br/>
<a id="pl.81.3"></a><var>81.3</var>sale of an individual health plan as allowed under Minnesota Statutes, section 
         <statute_ref>62L.02, <br/>
<a id="pl.81.4"></a><var>81.4</var>subdivision 26
         </statute_ref>;<br/>
<a id="pl.81.5"></a><var>81.5</var>    (4) Minnesota Statutes, section 
         <statute_ref>297I.05, subdivision 12</statute_ref>, paragraph (c), applies; and<br/>
<a id="pl.81.6"></a><var>81.6</var>    (5) the trust must pay the assessment for the Minnesota Comprehensive Health <br/>
<a id="pl.81.7"></a><var>81.7</var>Association as provided under Minnesota Statutes, section 
         <statute_ref>62E.11</statute_ref>.<br/>
<a id="pl.81.8"></a><var>81.8</var>    Subd. 2. <b>Evaluation and renewal.</b> The pilot project authorized under this section <br/>
<a id="pl.81.9"></a><var>81.9</var>is for a period of four years from the date of initial enrollment. The commissioner of <br/>
<a id="pl.81.10"></a><var>81.10</var>commerce shall grant an extension of four additional years if the trust provides evidence <br/>
<a id="pl.81.11"></a><var>81.11</var>that it remains in compliance with the requirements of this section and other applicable <br/>
<a id="pl.81.12"></a><var>81.12</var>laws and rules. If the commissioner determines that the operation of the trust has not <br/>
<a id="pl.81.13"></a><var>81.13</var>improved access, expanded health plan choices, or improved the affordability of health <br/>
<a id="pl.81.14"></a><var>81.14</var>coverage for farm families, or that it has significantly damaged access, choice, or <br/>
<a id="pl.81.15"></a><var>81.15</var>affordability for other consumers not enrolled in the trust, the commissioner shall provide <br/>
<a id="pl.81.16"></a><var>81.16</var>at least 180 days' advance written notice to the trust and to the chairs of the senate and <br/>
<a id="pl.81.17"></a><var>81.17</var>house finance and policy committees with jurisdiction over health and insurance of the <br/>
<a id="pl.81.18"></a><var>81.18</var>commissioner's intention not to renew the pilot project at the expiration of a four-year <br/>
<a id="pl.81.19"></a><var>81.19</var>period.<br/>
<a id="pl.81.20"></a><var>81.20</var>    Subd. 3. <b>Use of surplus lines.</b> Plans created under this section may use surplus lines <br/>
<a id="pl.81.21"></a><var>81.21</var>carriers to fulfill its obligations under Minnesota Statutes, chapter 62H.<br/>
<br/>
<a id="bill.0.100.0"></a><a id="pl.81.22"></a><var>81.22</var>    Sec. 100. <b>ON-SALE LICENSE; THEATRE L'HOMME DIEU.</b><br/>
<a id="pl.81.23"></a><var>81.23</var>Notwithstanding any law, ordinance, or charter provision to the contrary, Douglas <br/>
<a id="pl.81.24"></a><var>81.24</var>County may issue a wine and intoxicating malt liquor license to Theatre L'Homme Dieu. <br/>
<a id="pl.81.25"></a><var>81.25</var>The license authorizes sales on all days of the week to holders of tickets for performances <br/>
<a id="pl.81.26"></a><var>81.26</var>presented by the theater and to members of the nonprofit corporations holding the license <br/>
<a id="pl.81.27"></a><var>81.27</var>and to their guests.<br/>
<a id="pl.81.28"></a><var>81.28</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the licensing <br/>
<a id="pl.81.29"></a><var>81.29</var>authority in the manner specified by Minnesota Statutes, section 645.021, subdivisions <br/>
<a id="pl.81.30"></a><var>81.30</var>2 and 3.<br/>
<br/>
<a id="bill.0.101.0"></a><a id="pl.81.31"></a><var>81.31</var>    Sec. 101. <b>2011 APPOINTMENTS TO REAL ESTATE APPRAISER ADVISORY </b><br/>
<a id="pl.81.32"></a><var>81.32</var><b>BOARD.</b><br/>
<a id="pl.81.33"></a><var>81.33</var>The terms of all members of the Real Estate Appraiser Advisory Board expire the <br/>
<a id="pl.81.34"></a><var>81.34</var>effective date of this section. The commissioner of commerce shall, as soon as practicable <br/>
<a id="pl.82.1"></a><var>82.1</var>after this date, appoint members to an initial term of office as follows: three years for one <br/>
<a id="pl.82.2"></a><var>82.2</var>consumer of appraisal services member, one certified residential real property appraiser <br/>
<a id="pl.82.3"></a><var>82.3</var>member, and one certified general real property appraiser member; two years for one <br/>
<a id="pl.82.4"></a><var>82.4</var>consumer of appraisal services member, one certified residential real property appraiser <br/>
<a id="pl.82.5"></a><var>82.5</var>member, and one certified general real property appraiser member; and one year for one <br/>
<a id="pl.82.6"></a><var>82.6</var>consumer of appraisal services member, one certified residential real property appraiser <br/>
<a id="pl.82.7"></a><var>82.7</var>member, and one certified general real property appraiser member.<br/>
<a id="pl.82.8"></a><var>82.8</var>Upon the expiration of the term of office established in this section, the successor <br/>
<a id="pl.82.9"></a><var>82.9</var>must be appointed pursuant to Minnesota Statutes, section 82B.05.<br/>
<a id="pl.82.10"></a><var>82.10</var>All provisions of Minnesota Statutes, section 82B.05, not inconsistent with this <br/>
<a id="pl.82.11"></a><var>82.11</var>section apply to the initial board appointed pursuant to this section.<br/>
<a id="pl.82.12"></a><var>82.12</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2011.<br/>
<br/>
<a id="bill.0.102.0"></a><a id="pl.82.13"></a><var>82.13</var>    Sec. 102. <b>COORDINATION OF BENEFITS STUDY.</b><br/>
<a id="pl.82.14"></a><var>82.14</var>The commissioner of commerce, in consultation with the commissioner of <br/>
<a id="pl.82.15"></a><var>82.15</var>health and health plan companies, shall consider the appropriateness of adopting the <br/>
<a id="pl.82.16"></a><var>82.16</var>National Association of Insurance Commissioners 2005 Coordination of Benefits Model <br/>
<a id="pl.82.17"></a><var>82.17</var>Regulation. The commissioner shall submit recommendations and draft legislation, if any, <br/>
<a id="pl.82.18"></a><var>82.18</var>needed to implement the recommendations, to the legislature by January 15, 2011.<br/>
<br/>
<a id="bill.0.103.0"></a><a id="pl.82.19"></a><var>82.19</var>    Sec. 103. <b>SAUK RAPIDS; ON-SALE LICENSE.</b><br/>
<a id="pl.82.20"></a><var>82.20</var>Notwithstanding any other law, ordinance, or charter provision to the contrary, <br/>
<a id="pl.82.21"></a><var>82.21</var>the city of Sauk Rapids may issue an on-sale intoxicating liquor license, or an on-sale <br/>
<a id="pl.82.22"></a><var>82.22</var>3.2 percent malt liquor license, to the owner of an arena located on the Benton County <br/>
<a id="pl.82.23"></a><var>82.23</var>Fairgrounds or to an entity holding a concession contract with the owner for use on the <br/>
<a id="pl.82.24"></a><var>82.24</var>premises of that arena. Any license authorized by this section may be issued for space that <br/>
<a id="pl.82.25"></a><var>82.25</var>is not compact or contiguous, provided that all of the space is within the boundaries of the <br/>
<a id="pl.82.26"></a><var>82.26</var>arena and is included in the description of the licensed premises on the approved license <br/>
<a id="pl.82.27"></a><var>82.27</var>application. A license issued under this section authorizes sales on all days of the week <br/>
<a id="pl.82.28"></a><var>82.28</var>to persons attending activities or events at the arena. All other provisions of Minnesota <br/>
<a id="pl.82.29"></a><var>82.29</var>Statutes, chapter 340A not inconsistent with this section apply to the license authorized <br/>
<a id="pl.82.30"></a><var>82.30</var>under this section.<br/>
<a id="pl.82.31"></a><var>82.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.104.0"></a><a id="pl.82.32"></a><var>82.32</var>    Sec. 104. <b> REPEALER.</b><br/>
<a id="pl.83.1"></a><var>83.1</var>Minnesota Statutes 2008, sections 82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, <br/>
<a id="pl.83.2"></a><var>83.2</var>8, and 9; 82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3 and 7; 332.31, <br/>
<a id="pl.83.3"></a><var>83.3</var>subdivision 7; and 332.335, are repealed.<br/>
<a id="pl.83.4"></a><var>83.4</var>Minnesota Statutes 2009 Supplement, section 65B.133, subdivision 3; and 72B.02, <br/>
<a id="pl.83.5"></a><var>83.5</var>subdivision 11,  are repealed.<br/>
<a id="pl.83.6"></a><var>83.6</var>Minnesota Statutes 2008, section 72B.04, is repealed effective July 1, 2010.<br/>
<a id="pl.83.7"></a><var>83.7</var>Minnesota Statutes 2008, section 62L.056, is repealed effective January 1, 2012.<br/>