1.1 	A bill for an act
1.2 	relating to commerce; prohibiting certain practices relating to the management 
1.3 	of certain properties; providing remedies;proposing coding for new law in 
1.4 	Minnesota Statutes, chapter 325E.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [325E.67] PROPERTY MANAGEMENT.
1.7 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
1.8 	section.
1.9 	(b) "Person" means an individual, firm, partnership, limited liability company, 
1.10 	corporation, or association.
1.11 	(c) "Property manager" or "property management company" means a person who 
1.12 	engages in the business of managing real property that is owned by another person.
1.13 	(d) "Owner" means a person who has any legal or equitable interest in the real 
1.14 	property. An owner of a common interest community, as defined in chapter 515B, means 
1.15 	the unit owners' association organized under section 515B.3-101.
1.16 		Subd. 2.Interest of property management company in certain firms. No 
1.17 	property manager or property management company having an interest directly or 
1.18 	indirectly in a construction firm, salvage firm, or appraisal firm may hire the directly or 
1.19 	indirectly owned construction firm, salvage firm, or appraisal firm to perform work on a 
1.20 	managed property unless the interest has been disclosed in writing to the owner or owners 
1.21 	at least three days prior to the execution of a contract for the work. "Firm" includes a 
1.22 	corporation, partnership, association, or individual firm.
2.1 		Subd. 3.Prohibited practices. No property manager or property management 
2.2 	company shall request or accept money, rebates, or anything of value from a construction 
2.3 	firm, salvage firm, or appraisal firm as:
2.4 	(1) an inducement to refer business or clients to the firm;
2.5 	(2) a condition for awarding a contract to the firm;
2.6 	(3) part of a fee specified in a contract; or 
2.7 	(4) fee splitting for services rendered, unless the other person is also a licensed 
2.8 	contractor.
2.9 		Subd. 4.Remedies. If a property manager or property management company 
2.10 	violates this section, an owner may bring an action against the property manager or 
2.11 	property management company in a court of competent jurisdiction for damages sustained 
2.12 	by the owner as a consequence of the property manager's or property management 
2.13 	company's violation, together with the actual costs of the action, including reasonable 
2.14 	attorney fees. The remedies in this section are in addition to any other remedies permitted 
2.15 	by law.