Engrossments
Introduction		Posted on 03/06/2014
1st Engrossment		Posted on 03/28/2014
2nd Engrossment		Posted on 04/23/2014
3rd Engrossment		Posted on 05/07/2014

ARTICLE 1

OBSOLETE, UNNECESSARY, OR REDUNDANT PROVISIONS

Section 1.

Minnesota Statutes 2012, section 45.22, is amended to read:

45.22 LICENSE EDUCATION APPROVAL.

License education courses must be approved in advance by the commissioner.
Each education provider who offers a license education course must be approved by the
commissioner. Each approved education provider must have at least one coordinator who
meets the criteria specified in this chapter, and who is responsible for supervising the
educational program and assuring compliance with all laws and rules.

deleted text begin For courses with an initial approval date on or before December 31, 2000, approval
will expire on April 30, 2006. For courses with an initial approval date after January 1,
2001, but before August 1, 2005, approval will expire on April 30, 2007.
deleted text end

Sec. 2.

Minnesota Statutes 2012, section 45.23, is amended to read:

45.23 LICENSE EDUCATION FEES.

The following fees must be paid to the commissioner:

(1) initial course approval, $10 for each hour or fraction of one hour of education
course approval sought. Initial course approval expires on the last day of the 24th month
after the course is approved;

(2) renewal of course approval, $10 per course. Renewal of course approval expires
on the last day of the 24th month after the course is renewed;

(3) initial education provider approval, $100. Initial education provider approval
issued under this section is valid for a period not to exceed 24 months and expires on
January 31 of the renewal year assigned by the commissionerdeleted text begin . Active education providers
who have at least one approved coordinator as of June 1, 2006, are deemed to be approved
education providers and are not required to submit an initial application for education
provider approvaldeleted text end ; and

(4) renewal of education provider approval, $10. Each renewal of education
provider approval is valid for a period of 24 months. deleted text begin Active education providers who have
at least one approved coordinator as of June 1, 2006, will have an expiration date of
January 31, 2008.
deleted text end

Sec. 3.

Minnesota Statutes 2012, section 46.046, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Banking institution. new text end

new text begin "Banking institution" means a bank, trust company,
bank and trust company, savings bank, or industrial loan and thrift operating under section
53.04, subdivision 5, that is organized under the laws of this state, or a holding company
which owns or otherwise controls the banking institution.
new text end

Sec. 4.

Minnesota Statutes 2012, section 47.20, subdivision 7, is amended to read:

Subd. 7.

Discount points prohibited.

(1) deleted text begin No conventional loan made on or
after the effective date of Laws 1977, chapter 350 and prior to May 31, 1979 shall
contain a provision requiring or permitting the imposition, directly or indirectly, of any
discount points, whether or not actually denominated as discount points, on any person.
deleted text end Conventional or cooperative apartment loans made deleted text begin on or after May 31, 1979deleted text end may contain
provisions permitting discount points, if the loan does not provide a loan yield in excess of
that permitted by subdivision 4a. The loan yield is computed using the amount resulting
when the discount points are included in the finance charge.

(2) Forward commitment fees are not discount points within the meaning of this
subdivision.

(3) No charges, fees, or sums permitted by this section which are paid to and received
by a lender may be increased for purposes of evading compliance with this subdivision.

Sec. 5.

Minnesota Statutes 2012, section 47.325, is amended to read:

47.325 APPEAL AND JUDICIAL REVIEW.

A savings bank aggrieved by any action or inaction of the commissioner under
sections 47.27 to 47.30 may appeal under sections 14.63 to 14.69. deleted text begin The scope of judicial
review in the proceedings is as provided in those sections.
deleted text end

Sec. 6.

Minnesota Statutes 2012, section 53A.06, is amended to read:

53A.06 FINE, SUSPENSION, OR REVOCATION OF LICENSE.

(a) The commissioner may suspend or revoke any license under section 45.027 deleted text begin ifdeleted text end new text begin ,
including whennew text end the commissioner finds that:

(1) the licensee has failed to pay the annual license fee or to maintain in effect the
required bond or to comply with any order, decision, or finding of the commissioner
under this chapter;

(2) the licensee, or any officer or director of a corporate licensee, has violated any
provision of this chapter or any rule or order of the commissioner under this chapter
or chapter 45;

(3) the licensee, or any officer or director of a corporate licensee, has violated any
other law which would indicate that the person is untrustworthy or not qualified to operate
a currency exchange; or

(4) any fact or condition exists which, if it had existed at the time of the original or
renewal application for the license, would have warranted the commissioner refusing the
issuance of the license.

deleted text begin (b) A license may not be revoked until the licensee has had notice of a hearing
pursuant to the provisions of chapter 14.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end A licensee may surrender any license by delivery to the commissioner. The
surrender does not affect the licensee's civil or criminal liability for acts committed before
the surrender, or affect the liability on the bond required by sections 53A.01 to 53A.13, or
entitle the licensee to a return of any part of any license fee.

deleted text begin (d)deleted text end new text begin (c)new text end Before suspension or revocation of the license, the commissioner may fine a
licensee for violations of this chapter as authorized under chapter 45.

Sec. 7.

Minnesota Statutes 2012, section 56.131, subdivision 1, is amended to read:

Subdivision 1.

Interest rates and charges.

(a) On any loan in a principal amount
not exceeding $100,000 or 15 percent of a Minnesota corporate licensee's capital stock
and surplus as defined in section 53.015, if greater, a licensee may contract for and receive
interest, finance charges, and other charges as provided in section 47.59.

deleted text begin (b) Loans may be interest-bearing or precomputed.
deleted text end

deleted text begin (c) Notwithstanding section 47.59 to the contrary, to compute time on interest-bearing
and precomputed loans, including, but not limited to the calculation of interest, a day is
considered 1/30 of a month when calculation is made for a fraction of a calendar month. A
year is 12 calendar months. A calendar month is that period from a given date in one month
to the same numbered date in the following month, and if there is no same numbered date,
to the last day of the following month. When a period of time includes a whole month and
a fraction of a month, the fraction of a month is considered to follow the whole month.
deleted text end

deleted text begin In the alternative, for interest-bearing loans, a licensee may charge interest at the rate
of 1/365 of the agreed annual rate for each actual day elapsed.
deleted text end

deleted text begin (d) With respect to interest-bearing loans and notwithstanding section 47.59:
deleted text end

deleted text begin (1) Interest must be computed on unpaid principal balances outstanding from time to
time, for the time outstanding. Each payment must be applied first to the accumulated
interest and the remainder of the payment applied to the unpaid principal balance;
provided however, that if the amount of the payment is insufficient to pay the accumulated
interest, the unpaid interest continues to accumulate to be paid from the proceeds of
subsequent payments and is not added to the principal balance.
deleted text end

deleted text begin (2) Interest must not be payable in advance or compounded. However, if part or all of
the consideration for a new loan contract is the unpaid principal balance of a prior loan, then
the principal amount payable under the new loan contract may include any unpaid interest
which has accrued. The unpaid principal balance of a precomputed loan is the balance due
after refund or credit of unearned interest as provided in paragraph (e), clause (3). The
resulting loan contract is deemed a new and separate loan transaction for all purposes.
deleted text end

deleted text begin (e) With respect to precomputed loans and notwithstanding section 47.59 to the
contrary:
deleted text end

deleted text begin (1) Loans must be repayable in substantially equal and consecutive monthly
installments of principal and interest combined, except that the first installment period
may be more or less than one month by not more than 15 days, and the first installment
payment amount may be larger than the remaining payments by the amount of interest
charged for the extra days and must be reduced by the amount of interest for the number
of days less than one month to the first installment payment; and monthly installment
payment dates may be omitted to accommodate borrowers with seasonal income.
deleted text end

deleted text begin (2) Payments may be applied to the combined total of principal and precomputed
interest until the loan is fully paid. Payments must be applied in the order in which they
become due.
deleted text end

deleted text begin (3) If the maturity of the loan is accelerated for any reason and judgment is entered,
the licensee shall credit the borrower with the same refund as if prepayment in full had
been made on the date the judgment is entered.
deleted text end

deleted text begin (4) Following the final installment as originally scheduled or deferred, the licensee,
for any loan contract which has not previously been converted to interest-bearing under
paragraph (g), may charge interest on any balance remaining unpaid, including unpaid
default or deferment charges, at the single annual percentage rate permitted by this
subdivision until fully paid.
deleted text end

deleted text begin (5)deleted text end new text begin (b)new text end With respect to a loan secured by an interest in real estate, and having a
maturity of more than 60 months, the original schedule of installment payments must
fully amortize the principal and interest on the loan. The original schedule of installment
payments for any other loan secured by an interest in real estate must provide for payment
amounts that are sufficient to pay all interest scheduled to be due on the loan.

deleted text begin (f)deleted text end new text begin (c)new text end A licensee may contract for and collect a delinquency charge as provided for
in section 47.59, subdivision 6, paragraph (a), clause (4).

deleted text begin (g)deleted text end new text begin (d)new text end A licensee may grant extensions, deferments, or conversions to
interest-bearing as provided in section 47.59, subdivision 5.

Sec. 8.

Minnesota Statutes 2012, section 56.14, is amended to read:

56.14 DUTIES OF LICENSEE.

Every licensee shall:

(1) deliver to the borrower (or if there are two or more borrowers to one of them) at
the time any loan is made a statement making the disclosures and furnishing the information
required by the federal Truth-in-Lending Act, United States Code, title 15, sections 1601
to 1667e, as amended from time to time, with respect to the contract of loan. A copy of the
loan contract may be delivered in lieu of a statement if it discloses the required information;

(2) deliver or mail to the borrower without request, a written receipt within 30
days following payment for each payment by coin or currency made on account of any
loan wherein charges are computed and paid on unpaid principal balances for the time
actually outstanding, specifying the amount applied to charges and the amount, if any,
applied to principal, and stating the unpaid principal balance, if any, of the loan; and
wherein precomputed charges have been added to the principal of the loan specifying the
amount of the payment applied to principal and charges combined, the amount applied
to default or extension charges, if any, and stating the unpaid balance, if any, of the
precomputed loan contract. A periodic statement showing a payment received by mail
complies with this clause;

(3) permit payment to be made in advance in any amount on any contract of loan at
any time, but the licensee may apply the payment first to all charges in full at the agreed
rate up to the date of the payment;

(4) upon repayment of the loan in full, mark indelibly every obligation and security,
other than a mortgage or security agreement which secures a new loan to the licensee,
signed by the borrower with the word "Paid" or "Canceled," and release any mortgage
or security agreement which no longer secures a loan to the licensee, restore any pledge,
and cancel and return any note, and any assignment given to the licensee which does not
secure a new loan to the licensee within 20 days after the repayment. For purposes of this
requirement, the document including actual evidence of an obligation or security may be
maintained, stored, and retrieved in a form or format acceptable to the commissioner
under section 46.04, subdivision 3;

(5) display prominently in each licensed place of business a full and accurate
schedule, to be approved by the commissioner, of the charges to be made and the method
of computing the same; furnish a copy of the contract of loan to any person obligated on it
or who may become obligated on it at any time upon the request of that person;

(6) show in the loan contract or statement of loan the rate or rates of charge on which
the charge in the contract is based, expressed in terms of rate or rates per annum. The
rate expression shall be printed in at least 8-point type on the loan statement or copy of
the loan contract given to the borrowerdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (7) if a payment results in the prepayment of three or more installment payments
on a precomputed loan, within 15 days of receipt of the prepayment, deliver or mail to
the borrower a notice in at least eight-point type. The notice must contain the following
statement:
deleted text end

deleted text begin "You have substantially prepaid the installment payments on your loan and may
experience an interest savings over the remaining term only if you refinance the
balance within the next 30 days."
deleted text end

Sec. 9.

Minnesota Statutes 2012, section 58.115, is amended to read:

58.115 EXAMINATIONS.

The commissioner has under this chapter the same powers with respect to
examinations that the commissioner has under section 46.04deleted text begin , including the authority to
charge for the direct costs of the examination, including travel and per diem expensesdeleted text end .

Sec. 10.

Minnesota Statutes 2012, section 59C.10, subdivision 2, is amended to read:

Subd. 2.

Enforcement authority.

deleted text begin The commissioner may take action that is
necessary or appropriate to enforce the provisions of this chapter and the commissioner's
rules and orders and to protect warranty holders in this state.deleted text end The commissioner has the
enforcement authority in chapter 45 available to enforce the provisions of the chapter and
the rules adopted pursuant to it.

Sec. 11.

Minnesota Statutes 2012, section 60A.131, is amended to read:

60A.131 OTHER BUSINESS AND INSURANCE INTERESTS, DISCLOSURE.

(a) If requested by the commissioner, an insurance company authorized to do
business in this state shall disclose to the commissioner any changes in the principal
management and directors of the company from that listed on page one of the annual
statement within ten days of such change.

(b) Every insurance company authorized to do business in this state shall notify the
commissioner within ten days after receipt of notice of any acquisition by any person,
association or corporation of stock or other equity security in said insurer where such
transaction, directly or indirectly, either involves five percent or more of any class of any
equity security of said insurer, or such acquisition results in ownership of five percent or
more of any equity security of said insurer.

(c) All principal management and directors of the company as listed on page one of
its annual statement, and any person, association or corporation or any person or persons
managing such company under a management contract, who are directly or indirectly the
beneficial owners of more than five percent of any class of any equity security of a stock
insurer or guaranty fund of a mutual insurer, shall disclose all other interests in excess
of five percent which they may have in insurance agencies, other insurance companies,
premium finance companies and any other companies whose principal business relates
directly to the writing of insurance or the handling of claims, within 30 days following
May 21, 1967. Any such interests acquired after May 21, 1967, shall be reported to the
commissioner within 30 days deleted text begin after acquisition thereofdeleted text end .

deleted text begin (d) Every company applying for an initial certificate of authority to do business in this
state shall file with the application a statement giving the information required in paragraph
(c) as to its principal management, directors and affected holders of its equity securities.
deleted text end

Sec. 12.

Minnesota Statutes 2012, section 60K.361, is amended to read:

60K.361 INSURANCE EDUCATION.

(a) Prelicense education must consist of 20 hours of education per line of authority.

(b) The course must include an introduction to insurance and insurance-related
concepts covering all of the major lines of authority except variable life and variable
annuities. The course must consist of deleted text begin the following:deleted text end new text begin a curriculum as prescribed and
published by the commissioner from time to time.
new text end

deleted text begin (1) rules, regulations, and law;
deleted text end

deleted text begin (2) basic fundamentals of insurance;
deleted text end

deleted text begin (3) property:
deleted text end

deleted text begin (i) types of policies;
deleted text end

deleted text begin (ii) policy provisions;
deleted text end

deleted text begin (iii) perils, exclusions, deductibles, and liability; and
deleted text end

deleted text begin (iv) evaluating needs;
deleted text end

deleted text begin (4) casualty:
deleted text end

deleted text begin (i) types of policies;
deleted text end

deleted text begin (ii) policy provisions;
deleted text end

deleted text begin (iii) perils, exclusions, deductibles, and liability; and
deleted text end

deleted text begin (iv) evaluating needs;
deleted text end

deleted text begin (5) life:
deleted text end

deleted text begin (i) types of policies;
deleted text end

deleted text begin (ii) policy provisions; and
deleted text end

deleted text begin (iii) group insurance; and
deleted text end

deleted text begin (6) accident and health:
deleted text end

deleted text begin (i) types of policies;
deleted text end

deleted text begin (ii) policy provisions; and
deleted text end

deleted text begin (iii) group insurance.
deleted text end

deleted text begin (c) Courses that cover a specific major line of authority must include the following:
deleted text end

deleted text begin (1) life:
deleted text end

deleted text begin (i) types of life insurance policies; and
deleted text end

deleted text begin (ii) Minnesota laws, rules, and regulations pertinent to life insurance;
deleted text end

deleted text begin (2) accident and health:
deleted text end

deleted text begin (i) types of health insurance policies; and
deleted text end

deleted text begin (ii) Minnesota laws, rules, and regulations pertinent to accident and health insurance;
deleted text end

deleted text begin (3) property:
deleted text end

deleted text begin (i) personal lines;
deleted text end

deleted text begin (ii) commercial lines; and
deleted text end

deleted text begin (iii) Minnesota laws, rules, and regulations pertinent to property insurance.
deleted text end

deleted text begin (4) casualty:
deleted text end

deleted text begin (i) personal lines;
deleted text end

deleted text begin (ii) commercial lines; and
deleted text end

deleted text begin (iii) Minnesota laws, rules, and regulations pertinent to casualty insurance; and
deleted text end

deleted text begin (5) personal lines:
deleted text end

deleted text begin (i) types of property/casualty personal lines insurance policies; and
deleted text end

deleted text begin (ii) Minnesota laws, rules, and regulations pertinent to property/casualty personal
lines insurance.
deleted text end

Sec. 13.

Minnesota Statutes 2012, section 61A.02, subdivision 2, is amended to read:

Subd. 2.

Approval required.

Except as otherwise authorized pursuant to
subdivision 2a, no policy or certificate of life insurance or annuity contract,new text begin whether on a
nonvariable or variable basis,new text end issued to an individual, group, or multiple employer trust,
new text begin nor any form of application for the policy, certificate, or contract,new text end nor any rider of any kind
or description which is made a part thereof shall be issued or delivered in this state, or be
issued by a life insurance company organized under the laws of this state, until the form
of the same has been approved by the commissioner. In making a determination under
this section, the commissioner may require the insurer to provide rates and advertising
materials related to policies or contracts, certificates, or similar evidence of coverage
issued or delivered in this state.

Subdivisions 1 to 5 apply to a policy, certificate of insurance, or similar evidence
of coverage issued to a Minnesota resident or issued to provide coverage to a Minnesota
resident. Subdivisions 1 to 5 do not apply to a certificate of insurance or similar evidence
of coverage that meets the conditions of section 61A.093, subdivision 2.

Sec. 14.

Minnesota Statutes 2012, section 61A.02, subdivision 3, is amended to read:

Subd. 3.

Disapproval.

(a) The commissioner shall, within 60 days after the filing of
any form, disapprove the form:

(1) if the benefits provided are unreasonable in relation to the premium charged;

(2) if the safety and soundness of the company would be threatened by the offering
of an excess rate of interest on the policy or contract;

(3) if it contains a provision or provisions which are unlawful, unfair, inequitable,
misleading, or encourages misrepresentation of the policy; or

(4) if the form, or its provisions, is otherwise not in the public interest. It shall
be unlawful for the company to issue any policy in the form so disapproved. If the
commissioner does not within 60 days after the filing of any form, disapprove or otherwise
object, the form shall be deemed approved.

(b) When an insurer or the Minnesota Comprehensive Health Association fails to
respond to an objection or inquiry within 60 days, the filing is automatically disapproved.
A resubmission is required if action by the Department of Commerce is subsequently
requested. An additional filing fee is required for the resubmission.

(c) For purposes of paragraph (a), clause (2), an excess rate of interest is a rate of
interest exceeding the rate of interest determined by subtracting three percentage points
from Moody's corporate bond yield average as most recently available.

new text begin (d) The commissioner may at any time disapprove any contract form, application, or
certificate (1) if it does not comply with the provisions of sections 61A.13 to 61A.21; or (2)
if it contains provisions which are unjust, unfair, inequitable, ambiguous, or misleading.
After the commissioner has notified a company of disapproval, it shall be unlawful for that
company to issue or use the contract, application, or certificate in the form so disapproved.
new text end

Sec. 15.

Minnesota Statutes 2012, section 61A.03, subdivision 1, is amended to read:

Subdivision 1.

Generally.

No policy of life insurance may be issued in this state
or by a life insurance company organized under the laws of this state unless it contains
the following provisions:

(a) Premium. A provision that all premiums are payable in advance either at the
home office of the company, or to an agent of the company, upon delivery of a receipt
signed by one or more officers named in the policy and countersigned by the agent, but a
policy may contain a provision that the policy itself is a receipt for the first premium;

(b) Grace period. A provision for a one month grace period for the payment of
every premium after the first, during which the insurance will continue in force. The
provision may subject the late payment to a finance charge and contain a stipulation that
if the insured dies during the grace period, the overdue premium will be deducted in
any settlement under the policy;

(c) Entire contract. A provision that the policy constitutes the entire contract
between the parties new text begin and when referenced in the policy, includes any application, rider,
endorsement, or amendment attached to the policy; new text end and is incontestable after it has been in
force during the lifetime of the insured for two years from its date, except for nonpayment
of premiums and except for violations of the conditions of the policy relating to naval and
military services in time of war; that at the option of the company, provisions relative to
benefits in the event of total and permanent disability and provisions which grant additional
insurance specifically against death by accident, may be excepted; and that a special form
of policy may be issued on the life of a person employed in an occupation classified by the
company as extra hazardous or as leading to hazardous employment, which provides that
service in certain designated occupations may reduce the company's liability under the
policy to a certain designated amount not less than the full policy reserve;

(d) Representations and warranties. A provision that, in the absence of fraud, all
statements made by the insured new text begin in the application new text end are representations and not warranties,
and that no statement voids the policy unless it is contained in a written application and a
copy of the application is endorsed upon or attached to the policy when issued;

(e) Misstatement of age. A provision that if the age of the insured is understated the
amount payable under the policy will be the amount the premium would have purchased
at the correct age;

(f) Dividends on participating policies. A provision that the policy will participate
in the surplus of the company and that, beginning not later than the end of the third policy
year, the company will annually determine and account for the portion of the divisible
surplus accruing on the policy, and that the owner of the policy has the right, each year
after the fifth, to have the current dividend arising from the participation paid in cash. If
the policy provides other dividend options, it must specify which option is effective if the
owner of the policy does not elect an option. The provision may condition any dividends
payable during the first five years of the policy upon the payment of the next ensuing annual
premium. This provision is not required in nonparticipating policies, in policies issued on
under-average lives, or in insurance in exchange for lapsed or surrendered policies;

(g) Policy loans. A provision (1) that after three full years' premiums have been
paid, the company at any time while the policy is in force, will advance, on proper
assignment of the policy, and on the sole security thereof, at a specified rate of interest,
not to exceed eight percent per annum, or at an adjustable rate of interest as otherwise
provided for in this section, a sum equal to, or, at the option of the owner of the policy,
less than the loan value thereof; (2) that the loan value is the cash surrender value thereof
at the end of the current policy year; (3) that the loan, unless made to pay premiums, may
be deferred for not more than six months after the application for it is made; (4) that the
company will deduct from the loan value any existing indebtedness on the policy and
any unpaid balance of the premium for current policy year, and may collect interest in
advance on the loan to the end of the current policy year; (5) that the failure to repay an
advance or to pay interest does not void the policy unless the total indebtedness thereon
to the company equals or exceeds the loan value at the time of the failure, nor until one
month after notice has been mailed by the company to the last known address of the
insured and of the assignee of record at the home office of the company; and (6) that no
condition other than those provided in this section will be exacted as a prerequisite to an
advance. This provision is not required in term insurance;

(h) Reinstatement. A provision that if, in event of default in premium payments, the
nonforfeiture value of the policy is applied to the purchase of other insurance, and if that
insurance is in force and the original policy has not been surrendered to the company and
canceled, the policy may be reinstated within three years after the default upon evidence of
insurability satisfactory to the company and payment of arrears of premiums with interest;

(i) Payment of claims. A provision that, when a policy becomes a claim by the
death of the insured, settlement will be made within two months after receipt of due
proof of death;

(j) Settlement option. A table showing the amount of installments in which the
policy may provide its proceeds may be payable;

(k) Description of policy. A title on the face and on the back of the policy briefly
and correctly describing the policy in bold letters stating its general character, dividend
periods, and other particulars, so that the holder will not be able to mistake the nature
and scope of the contract;

(l) Form number. A form number in the lower left-hand corner of the first page of
each form, including riders and endorsements.

Any of the foregoing provisions or portions thereof relating to premiums not
applicable to single premium policies must not be incorporated therein.

Sec. 16.

Minnesota Statutes 2012, section 61A.15, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Any variable contract or policy. new text end

new text begin Any contract on a variable basis
providing benefits payable in variable amounts delivered or issued for delivery in this state
must contain a statement of the essential features of the procedures to be followed by the
insurance company in determining the dollar amount of such variable benefits. Any such
contract, including a group contract, and any certificate in evidence of variable benefits
issued under it, must state the manner in which the dollar amounts will vary and must
contain on its first page a statement to the effect that the benefits under the contract are
on a variable basis.
new text end

Sec. 17.

Minnesota Statutes 2012, section 72B.03, is amended to read:

72B.03 LICENSES.

Subdivision 1.

Requirement; exceptions.

(a) A person shall not act or hold out as
an independent adjusterdeleted text begin ,deleted text end new text begin ornew text end public adjusterdeleted text begin , or public adjuster solicitordeleted text end unless the person
is licensed as an independent adjusterdeleted text begin ,deleted text end new text begin ornew text end public adjusterdeleted text begin , or public adjuster solicitordeleted text end in
accordance with this chapter, or is exempt from licensure as an independent adjusterdeleted text begin ,deleted text end new text begin or
new text end public adjusterdeleted text begin , or public adjuster solicitordeleted text end under this chapter.

(b) The definition of adjuster does not include, and a license as an adjuster is not
required of, the following:

(1) attorneys-at-law admitted to practice in this state, when acting in the attorney's
professional capacity as an attorney;

(2) a person employed solely to obtain facts surrounding a claim or to furnish
technical assistance to a licensed adjuster;

(3) an individual who is employed to investigate suspected fraudulent insurance
claims but who does not adjust losses or determine claims payments;

(4) a person who solely performs executive, administrative, managerial, or clerical
duties or any combination of these duties and who does not investigate, negotiate, or settle
claims with policyholders, claimants, or their legal representative;

(5) a licensed health care provider or its employee who provides managed care
services so long as the services do not include the determination of compensability;

(6) a managed care organization or any of its employees or an employee of any
organization providing managed care services so long as the services do not include the
determination of compensability;

(7) a person who settles only reinsurance or subrogation claims;

(8) an officer, director, manager, or employee of an authorized insurer, a surplus lines
insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer;

(9) a United States manager of the United States branch of an alien insurer;

(10) a person who investigates, negotiates, or settles life, accident and health,
annuity, or disability insurance claims;

(11) an individual employee, under a self-insured arrangement, who adjusts claims
on behalf of the employee's employer;

(12) a licensed insurance producer, attorney-in-fact of a reciprocal insurer, or
managing general agent of the insurer to whom claim authority has been granted by the
insurer;

(13) a person authorized to adjust workers' compensation or disability claims under
the authority of a third-party administrator license pursuant to section 60A.23, subdivision
8; or

(14) an individual who:

(i) collects claim information from, or furnishes claim information to, insureds or
claimants; and

(ii) conducts data entry including entering data into an automated claims adjudication
system, provided that the individual is an employee of a licensed independent adjuster or
its affiliate where no more than 25 such persons are under the supervision of one licensed
independent adjuster or licensed insurance producer who is exempt from licensure under
clause (12).

Subd. 2.

Classes of licenses.

(a) Unless denied licensure pursuant to section 72B.08,
persons who have met the requirements of section 72B.041 must be issued an adjuster
license. There shall be deleted text begin fourdeleted text end new text begin threenew text end classes of licenses, as follows:

(1) independent adjuster's license;

(2) public adjuster's license;new text begin and
new text end

deleted text begin (3) public adjuster solicitor's license; and
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end crop hail adjuster's license.

(b) An independent adjuster and a public adjuster may qualify for a license in one or
more of the following lines of authority:

(1) property and casualty; or

(2) workers' compensation; or

(3) crop.

(c) Any person holding a license pursuant to this section is not required to hold any
other independent adjuster, public adjuster, insurance, or self-insurance administrator
license in this state pursuant to section 60A.23, subdivision 8, or any other provision,
provided that the person does not act as an adjuster with respect to life, health, or annuity
insurance, other than disability insurance.

(d) An adjuster license remains in effect unless probated, suspended, revoked, or
refused as long as the fee set forth in section 72B.041, subdivision 9, is paid and all other
requirements for license renewal are met by the due date, otherwise, the license expires.

(e) An adjuster whose license expires may, within 12 months of the renewal date,
be reissued an adjuster license upon receipt of the renewal request, as prescribed by the
commissioner; however, a penalty in the amount of double the unpaid renewal fee is
required to reissue the expired license.

(f) An adjuster who is unable to comply with license renewal procedures and
requirements due to military service, long-term medical disability, or some other
extenuating circumstance may request a waiver of same and a waiver of any examination
requirement, fine, or other sanction imposed for failure to comply with renewal procedures.

(g) An adjuster is subject to sections 72A.17 to 72A.32.

(h) The adjuster must inform the commissioner by any means acceptable of any
change in resident or business addresses for the home state or in legal name within 30
days of the change.

(i) The license must contain the licensee's name, address, and personal identification
number; the dates of issuance and expiration; and any other information the commissioner
deems necessary.

(j) In order to assist in the performance of the commissioner's duties, the
commissioner may contract with nongovernmental entities, including the National
Association of Insurance Commissioners, its affiliates, or its subsidiaries, to perform any
ministerial functions related to licensing that the commissioner may deem appropriate,
including the collection of fees and data.

Subd. 3.

Payment for services; unlawful practice.

No insurer, agent, or other
representative of an insurer nor any adjuster shall pay any fee or other compensation to
any person for acting as an adjuster, deleted text begin or a public adjuster solicitor,deleted text end except to a person
duly licensed to so act or to a person not required to be licensed by sections 72B.01 to
72B.14; and it shall be unlawful for any person to act as an independent adjusterdeleted text begin ,deleted text end new text begin or
new text end a public adjuster deleted text begin or a public adjuster solicitor,deleted text end who is not duly licensed, or excluded
from the licensing requirement.

Sec. 18.

Minnesota Statutes 2012, section 72B.041, subdivision 1, is amended to read:

Subdivision 1.

Application.

(a) An individual applying for a resident adjuster
license must make application to the commissioner on the appropriate National
Association of Insurance Commissioners (NAIC) Uniform Individual Application in
a format prescribed by the commissioner and declare under penalty of suspension,
revocation, or refusal of the license that the statements made in the application are true,
correct, and complete to the best of the individual's knowledge and belief. Before
approving the application, the commissioner must find that the individual:

(1) is at least 18 years of age;

(2) is eligible to designate this state as the individual's home state;

(3) is trustworthy, reliable, and of good reputation, evidence of which must be
determined by the commissioner;

(4) has not committed any act that is a ground for probation, suspension, revocation,
or refusal of an adjuster's license as set forth in section 72B.08;

(5) has successfully passed the examination for the lines of authority for which
the individual has applied; and

(6) has paid the fees set forth in subdivision 9.

deleted text begin An applicant for licensing as a public adjuster solicitor under sections 72B.01 to
72B.14 must be at least 18 years of age, must be competent and trustworthy, and must not
have been engaged in any practice which would be grounds for suspension or revocation
of a license under sections 72B.01 to 72B.14 within the three years next preceding the
date of the application.
deleted text end

deleted text begin In the case of any applicant who has been convicted of a felony within the ten years
next preceding the date of the application, and who in the judgment of the commissioner,
meets the other qualifications, the commissioner may impose the additional requirement of
the filing of a bond in accordance with the requirements of section 72B.08, subdivision 8.
deleted text end

(b) A business entity applying for a resident adjuster license must make application
to the commissioner on the appropriate NAIC Uniform Business Entity Application
in a format prescribed by the commissioner and declare under penalty of suspension,
revocation, or refusal of the license that the statements made in the application are true,
correct, and complete to the best of the business entity's knowledge and belief. Before
approving the application, the commissioner shall find that the business entity:

(1) is eligible to designate this state as its home state;

(2) has designated a licensed independent or public adjuster responsible for the
business entity's compliance with the insurance laws, rules, and regulations of this state;

(3) has not committed an act that is a ground for probation, suspension, revocation,
or refusal of an adjuster's license as set forth in section 72B.08; and

(4) has paid the fees set forth in subdivision 9.

(c) No resident of Canada may be licensed under this section or may designate
Minnesota as the applicant's home state, unless the applicant has successfully passed
the adjuster examination and has complied with the other applicable provisions of this
section, except that such applicant shall not be subject to paragraph (a), clause (2), and
section 270C.72, subdivision 4.

Sec. 19.

Minnesota Statutes 2012, section 72B.08, subdivision 1, is amended to read:

Subdivision 1.

Causes.

The commissioner may place on probation, suspend, revoke,
or refuse to issue or renew an adjuster's license or temporary permit or may levy a civil
penalty according to section 45.027, subdivision 6, or any combination of the above
actions for any of the following causes:

(1) failure to pass a required examination;

(2) obtaining or attempting to obtain a license through misrepresentation or fraud
providing incorrect, misleading, incomplete, or materially untrue information in the
license application;

(3) violating any insurance laws, rules, subpoena, or order of the commissioner or of
another state's insurance commissioner or any provision of sections 72B.01 to 72B.14;

(4) improperly withholding, misappropriating, or converting any money or
properties received in the course of doing insurance business;

(5) intentionally misrepresenting the terms of an actual or proposed insurance
contract or application for insurance, with intent to deceive, or engaging in, or attempting
to engage in, any fraudulent transaction with respect to a claim or loss that the licensee or
holder of a temporary permit is adjusting deleted text begin and, in the case of a public adjuster solicitor,
misrepresenting the services offered or the fees or commission to be chargeddeleted text end ;

(6) conviction of a felony under the laws of this state, any other state, the United
States, or any foreign country;

(7) the licensee or holder of a temporary permit has demonstrated incompetency or
untrustworthiness to act as an adjuster deleted text begin or public adjuster solicitordeleted text end ;

(8) refusal to comply with any lawful order of the commissioner;

(9) having admitted or been found to have committed any insurance unfair trade
practice or fraud;

(10) using fraudulent, coercive, or dishonest practices, or demonstrating
incompetence, untrustworthiness, or financial irresponsibility, in the conduct of insurance
business in this state or elsewhere;

(11) having an insurance license, or its equivalent, probated, suspended, revoked, or
refused in any other state, province, district, or territory;

(12) forging another's name to any document related to an insurance transaction;

(13) cheating, including improperly using notes or any other reference material, to
complete an examination for an insurance license;

(14) failing to comply with an administrative or court order imposing a child support
obligation; or

(15) failing to pay state income tax or comply with any administrative or court order
directing payment of state income tax which remains unpaid.

Sec. 20.

Minnesota Statutes 2012, section 82.60, subdivision 1, is amended to read:

Subdivision 1.

Prelicense education.

Prelicense education for a real estate
salesperson must consist of deleted text begin Course I, Course II, and Course III as described in this
sectiondeleted text end new text begin a curriculum as prescribed and published by the commissioner from time to
timenew text end . Prelicense education for a real estate broker must consist of the broker course as
described in this section.

Sec. 21.

Minnesota Statutes 2012, section 82.60, subdivision 5, is amended to read:

Subd. 5.

Broker course.

The required course for real estate brokers must consist
of deleted text begin the subject hours in paragraphs (a) to (j)deleted text end new text begin a curriculum as prescribed and published
by the commissioner from time to timenew text end .

deleted text begin (a) Broker Licensing Requirements, three hours:
deleted text end

deleted text begin (1) ownership and operational forms; and
deleted text end

deleted text begin (2) Minnesota license law review.
deleted text end

deleted text begin (b) Trust Account Requirements, two hours:
deleted text end

deleted text begin (1) opening the trust account;
deleted text end

deleted text begin (2) deposit requirements; and
deleted text end

deleted text begin (3) trust account records.
deleted text end

deleted text begin (c) Agency, five hours:
deleted text end

deleted text begin (1) current statutes and agency law; and
deleted text end

deleted text begin (2) statutory addenda and disclosures.
deleted text end

deleted text begin (d) Antidiscrimination, three hours:
deleted text end

deleted text begin (1) federal fair housing;
deleted text end

deleted text begin (2) Americans with Disabilities Act; and
deleted text end

deleted text begin (3) Minnesota Human Rights Act.
deleted text end

deleted text begin (e) Real Estate Principles Update, one hour:
deleted text end

deleted text begin (1) land improvement, estates;
deleted text end

deleted text begin (2) legal descriptions;
deleted text end

deleted text begin (3) governmental rights; and
deleted text end

deleted text begin (4) property taxation and special assessments.
deleted text end

deleted text begin (f) Real Estate Sale, Lease, and Transfer, two hours:
deleted text end

deleted text begin (1) purchase agreement and addenda;
deleted text end

deleted text begin (2) lease types and terms;
deleted text end

deleted text begin (3) deed types and clauses; and
deleted text end

deleted text begin (4) contract for deed.
deleted text end

deleted text begin (g) Financing and Valuation Update, three hours:
deleted text end

deleted text begin (1) sources of financing;
deleted text end

deleted text begin (2) foreclosure law;
deleted text end

deleted text begin (3) principles of value; and
deleted text end

deleted text begin (4) methods of valuation.
deleted text end

deleted text begin (h) Broker's Role in Closing, three hours:
deleted text end

deleted text begin (1) prorating;
deleted text end

deleted text begin (2) closing statements;
deleted text end

deleted text begin (3) closing documents; and
deleted text end

deleted text begin (4) deposit requirements.
deleted text end

deleted text begin (i) Income Taxation, three hours:
deleted text end

deleted text begin (1) tax rules of home ownership;
deleted text end

deleted text begin (2) investment tax issues; and
deleted text end

deleted text begin (3) sale of personal residence.
deleted text end

deleted text begin (j) Employment Laws and Insurance, three hours:
deleted text end

deleted text begin (1) Fair Labor Standards Act;
deleted text end

deleted text begin (2) tax laws, withholding, reports;
deleted text end

deleted text begin (3) independent contractor vs. employee;
deleted text end

deleted text begin (4) State and Federal Unemployment Tax Act; and
deleted text end

deleted text begin (5) errors and omissions insurance.
deleted text end

deleted text begin (k) Final Exam.
deleted text end

Sec. 22.

Minnesota Statutes 2012, section 82.63, subdivision 6, is amended to read:

Subd. 6.

Terminations; transfers.

deleted text begin (a)deleted text end Except as provided in paragraph (b), when a
salesperson terminates activity on behalf of a broker, the salesperson's license shall be
ineffective. Within ten days of the termination the broker shall notify the commissioner
in deleted text begin writing, and shall return to the commissioner the license of the salespersondeleted text end new text begin the form
prescribed by the commissionernew text end . The salesperson may apply for transfer of the license
tonew text begin active status withnew text end another broker at any time during the remainder of the license
perioddeleted text begin , on forms provided by the commissioner. If the application for transfer qualifies,
the commissioner shall grant the application. Upon receipt of a transfer application and
payment of the transfer fee, the commissioner may issue a 45-day temporary licensedeleted text end . If
an application for transfer is not made within the license period, the commissioner shall
require that an application for a new license be filed.

deleted text begin (b) When a salesperson terminates activity on behalf of a broker in order to begin
association immediately with another broker, the commissioner shall permit the automatic
transfer of the salesperson's license. The transfer shall be effective either upon the mailing
of the required fee and the executed documents by certified mail or upon personal delivery
of the fee and documents to the commissioner's office. The commissioner may adopt rules
and prescribe forms as necessary to implement this paragraph.
deleted text end

Sec. 23.

Minnesota Statutes 2012, section 82A.03, is amended to read:

82A.03 REGISTRATION REQUIREMENT.

It is unlawful for any person to offer or sell a membership camping contract in this
state deleted text begin unless:deleted text end new text begin without meeting the requirements of this chapter.
new text end

deleted text begin (1) the membership camping contract is registered in accordance with the provisions
of this chapter; or
deleted text end

deleted text begin (2) the membership camping contract or the transaction is exempted under section
82A.06.
deleted text end

Sec. 24.

Minnesota Statutes 2012, section 82A.09, subdivision 2, is amended to read:

Subd. 2.

Restrictions.

No person shall publish or cause to be published in this state
any advertisement concerning any membership camping contract deleted text begin which is required to be
registered pursuant to this chapter, or which is exempt from registration under section
82A.06, subdivision 2,deleted text end after the commissioner has found that the advertisement contains
any statement that is false or misleading, or omits to make any statement necessary in
order to make the statements made, in light of the circumstances under which they were
made, not misleading, and has so notified the person by written order. The order may be
issued without prior notice or hearing. Up to 30 days after the issuance of the order, the
person desiring to use the advertisement may in writing request a hearing on the order.
Upon receipt of a written request, the matter shall be set for hearing to commence within
15 days after the receipt unless the person making the request consents to a later date.
After the hearing, which shall be conducted in accordance with the provisions of chapter
14, the commissioner shall, by written order, either affirm, modify, or vacate the order.

Sec. 25.

Minnesota Statutes 2012, section 82A.10, is amended to read:

82A.10 INSPECTION OF RECORDS.

All records of a membership camping operator and broker and their agents pertaining
to the advertising or sale of membership camping contracts in this state shall be maintained
by the membership camping operator or broker at that person's principal place of business
and shall there be subject to inspection by the commissioner during normal business hours.
deleted text begin The commissioner shall be promptly notified of any change of address affecting the location
of the records of the membership camping operator or broker and that person's agents.
deleted text end

Sec. 26.

Minnesota Statutes 2012, section 82A.111, subdivision 2, is amended to read:

Subd. 2.

Membership camping dues.

A membership camping operator or the
operator's salesperson shall deposit all membership dues received in an escrow account in a
Minnesota bank, trust company, or savings association, a foreign bank which authorizes the
commissioner to examine its records of these deposits upon demand by the commissioner,
or an industrial loan and thrift company organized under chapter 53 with deposit liabilities.
deleted text begin In any calendar year, total dues to be deposited in the escrow may not exceed an amount
approved by the commissioner as reasonably needed for that calendar year's maintenance
budget submitted by the operator.deleted text end The operator may draw funds from the escrow as
needed provided that funds are expended for purposes identified by the budget.

Sec. 27.

Minnesota Statutes 2012, section 82A.12, subdivision 1, is amended to read:

Subdivision 1.

Generally.

The commissioner may issue a cease and desist order
and may issue an order denying, suspending, or revoking any registration, amendment
renewal, or exemption if the commissioner finds any of the following:

(1) that the membership camping operator or registrant or any controlling person
thereof has materially or intentionally violated or failed to comply with any provision of
this chapter or any rule or order of the commissioner;

(2) that the offer or sale of the membership camping contract has constituted or
would constitute a material misrepresentation to purchasers, or has operated or would
operate as a fraud or deceit upon purchasers;

(3) that the membership camping operator or registrant or any controlling person,
agent, or employee thereof, is engaging or about to engage in false, fraudulent, or deceptive
practices in connection with the offer and sale of a membership camping contract;

(4) that the membership camping operator or registrant or any controlling person or
employee thereof, has engaged in any fraudulent or deceptive practice, whether or not in
connection with the offer and sale of membership camping contracts, and the involvement
of the person in the business of the membership camping operator or registrant creates a
substantial risk of harm to prospective purchasers;

(5) that the financial condition of the membership camping operator materially
adversely affects, or would materially adversely affect, the ability of the membership
camping operator such that there is a reasonable likelihood that the membership camping
operator will not be able to substantially fulfill its obligations under the membership
camping contract, and no other financial security or assurance is provided by the
membership camping operator to fulfill the obligations;

(6) that the membership camping operator's or registrant's enterprise or method of
business with respect to the operation of a campground in this state includes or would
include activities which are illegal or not in conformance with applicable statutes,
ordinances, or regulations of any governmental entity;new text begin and
new text end

deleted text begin (7) that the membership camping operator or registrant or any controlling person
thereof has made material misrepresentations or concealed material facts in an application
for registration;
deleted text end

deleted text begin (8) that any fee required by this chapter to be paid by the operator or registrant has
not been paid; and
deleted text end

deleted text begin (9)deleted text end new text begin (7)new text end that the membership camping operator or controlling person, agent, or
employee thereof, has failed faithfully to perform any stipulation or agreement made with
the commissionerdeleted text begin as an inducement to grant any registration, to reinstate any registration,
or to permit any disclosure statement; provided, however, that this clause shall not be
deemed to require any stipulations or agreementsdeleted text end .

Sec. 28.

Minnesota Statutes 2013 Supplement, section 82A.13, subdivision 1, is
amended to read:

Subdivision 1.

Untrue statements filed in documents.

No person shall make
or cause to be made any untrue statement of a material fact in an application or other
document filed with the commissioner deleted text begin under this chapter, or omit to state in the application
or other document any material fact which is required to be stated therein, or fail to notify
the commissioner of any material change as required by section 82A.07deleted text end .

Sec. 29.

Minnesota Statutes 2012, section 82A.14, is amended to read:

82A.14 UNFAIR PRACTICES.

No membership camping operator shall:

(1) sell or offer to sell any membership camping contract with respect to a
campground located in this state which is subject to a blanket encumbrance unless;

(i) each person holding an interest in a blanket encumbrance shall have executed
and delivered a nondisturbance agreement and recorded the agreement in the real estate
records of the county in which the campground is located; or

(ii) a bond or irrevocable letter of credit has been issued, or cash or a certified check in
an amount sufficient to cover payment of all amounts secured by the blanket encumbrance
has been deposited, in the name of the state for the benefit and protection of purchasers of
membership camping contracts and subject to terms as approved by the commissioner.
Any interest accruing on amounts held in the account shall be payable, as and when
earned, to the membership camping operator. Any bond shall be executed by an insurance
company authorized to do business in this state, which has sufficient net worth to satisfy
the indebtedness and which has given consent to be sued in this state. Any irrevocable
letter of credit shall be issued by a bank or savings association which has sufficient net
worth to satisfy the indebtedness and which has given its consent to be sued in this state.
The bond, cash, certified check, or irrevocable letter of credit shall be in an amount which
is not less than 110 percent of the remaining principal balance of every indebtedness or
obligation secured by a blanket encumbrance affecting the campground. The bond or
agreement accompanying the cash, certified check, or irrevocable bank letter of credit shall
provide for the payment of all amounts secured by the blanket encumbrance, including
costs, expenses, and legal fees of the lienholder, if for any reason the blanket encumbrance
is enforced. The bond, cash, certified check, or letter of credit may be reduced periodically
in proportion to the reductions in the amount secured by the blanket encumbrance; or

(iii) the lender providing the major hypothecation loan to the membership camping
operator (the "hypothecation lender"), and having a lien on or security interest in the
membership camping operator's interest in the campground, shall have executed and
delivered a nondisturbance agreement and recorded the agreement in the real estate records
of the county in which the campground is located in this state. Each person holding an
interest in a blanket encumbrance superior to the interest held by the hypothecation lender
shall have executed, delivered, and recorded an instrument stating that the person shall
give the hypothecation lender notice of, and at least 30 days' opportunity to cure, any
default under the blanket encumbrance which entitles the person to foreclose upon the
campground. The instrument shall state that the notice and opportunity to cure shall be
given before the person commences any foreclosure action affecting the campground and
in accordance with the instrument. The hypothecation lender shall have guaranteed that
it will cure or arrange for the cure of the default. Any holder of a blanket encumbrance
inferior to the hypothecation lender who acquires the campground in foreclosure shall
take the campground subject to the hypothecation lender's nondisturbance agreement.
For purposes of this provision, a "hypothecation lender" is any lender extending a loan
or line of credit to a membership camping operator secured by all or substantially all
of the contract receivables arising from the membership camping operator's sale of
membership camping contracts in this state. For purposes of this provision, "lender"
means an insurance company or a federally or state chartered bank, savings association,
any other lending institution, the deposits of which are guaranteed or insured, by a federal
agency, or any other person which has sufficient net worth to pay the obligations pursuant
to this section if there are no reasonable grounds to believe that the lender will not be able
to pay these obligations in the future; deleted text begin or
deleted text end

deleted text begin (iv) the operator can provide an alternative plan acceptable to the commissioner;
deleted text end

(2) sell any campground which is located in this state and available for use by
purchasers, unless:

(i) the membership camping operator sells the campground to a person who takes
the campground subject to all rights and interests of purchasers, and contractually agrees
not to compromise the rights and interests of purchasers in regard to future conveyances
of, or encumbrances placed on the campground;

(ii) the membership camping operator immediately substitutes for the use of
purchasers another campground which is in the same general area and is at least as
desirable for the purpose of camping and outdoor recreation as the previous campground.
For purposes of this provision, "same general area" means a location within a 50-mile
radius of the previous campground; or

(iii) the membership camping operator immediately substitutes for the use of
purchasers another campground and the substitution is approved by two-thirds of all
existing purchasers;

(3) substitute any campground located in this state and available for use by
purchasers with a different campground, unless the substituted campground is in the same
general area and is at least as desirable for the purpose of camping and outdoor recreation
as the previous campground. For purposes of this provision, "same general area" means a
location within a 50-mile radius of the previous campground;

(4) sell membership camping contracts with respect to any campground located
in this state that is not owned by the membership camping operator or leased by the
membership camping operator for a lease term at least equal to the term of the membership
camping contract with respect to the campground;

(5) fail to disclose the circumstances, if any, under which any reciprocal program
that has been offered as an inducement to purchasers may be terminated;

(6) materially modify any campground rules or regulations or modify purchasers'
rights to or the scope and nature of an amenity in a manner which significantly degrades or
diminishes the material rights of any purchaser without prior notice to purchasers resident
in this state; or materially adversely modify any material campground rules or regulations
or materially adversely modify purchaser's rights to or the scope and nature of an amenity
in a manner which the purchaser proves:

(i) significantly degrades or diminishes any material rights of that purchaser; and

(ii) has no compensating benefit to any other purchaser or groups of purchasers;

(7) terminate or provide for termination of a membership camping contract, except
for good cause. "Good cause" shall mean failure of the purchaser to substantially or
consistently comply with reasonable requirements imposed by the membership camping
contract and campground rules and regulations;

(8) terminate a membership camping contract without first giving written notice
setting forth all reasons for the termination to the purchaser at least 30 days prior to the
termination becoming effective;

(9) increase a purchaser's membership dues after the sale of a contract in such
a manner as to result in an increase thereof greater than whichever of the following
increases is higher:

(i) the actual increase in costs of services or improvements for which the membership
dues are imposed; or

(ii) the increase in the United States city average Consumer Price Index for all
urban consumers issued by the United States Bureau of Labor Statistics or such other
federally prepared Consumer Price Index or Wage Earner Index as reasonably selected
by the operator in its discretion;

(10) require purchaser to certify the absence of any misrepresentation or other
violation of this chapter provided, however, that a purchaser's acknowledgment of receipt
of a copy of the membership camping contract shall not be deemed to constitute such
a certification;

(11) require the purchaser to waive the right to assert against the membership
camping operator or any assignee any claim or defense the purchaser may have against the
membership camping operator under the membership camping contract; or

(12) materially and repeatedly fail to maintain a campground in this state in the
manner contractually agreed upon.

Sec. 30.

Minnesota Statutes 2012, section 82A.22, subdivision 2, is amended to read:

Subd. 2.

Appointment of commissioner.

When any person, including any
nonresident of this state, engages in conduct prohibited or made actionable by this chapter,
or any rule or order thereunder, deleted text begin and the person has not filed a consent to service of process
under subdivision 1deleted text end and personal jurisdiction over this person cannot otherwise be obtained
in this state, that conduct shall be considered equivalent to the person's appointment of
the commissioner or the commissioner's successor to be the person's attorney to receive
service of any lawful process in any noncriminal suit, action, or proceeding against the
person which grows out of that conduct and which is brought under this chapter or any rule
or order thereunder, with the same force and validity as if served on the person personally.
Service under this section shall be made in compliance with section 45.028, subdivision 2.

Sec. 31.

Minnesota Statutes 2012, section 82A.25, is amended to read:

82A.25 CRIMINAL PENALTIES.

Any person who willfully violates deleted text begin section 82A.03 by offering or selling unregistered,
nonexempt membership camping contracts ordeleted text end section 82A.13 or any order of the
commissioner pursuant thereto of which that person has notice, may be fined not more
than $5,000 or imprisoned not more than five years or both. Each of the acts specified
shall constitute a separate offense and a prosecution or conviction for any one of the
offenses shall not bar prosecution or conviction for any other offense.

Sec. 32.

Minnesota Statutes 2012, section 82A.26, is amended to read:

82A.26 NONAPPLICABILITY OF CERTAIN LAW.

Membership camping contracts registered pursuant to this chapter are exempt
from the provisions of chapter 83. To the extent that deleted text begin licenseddeleted text end salespersons and licensed
brokers engage in the offer or sale of membership camping contracts, those brokers and
salespersons are exempt from the licensing requirements of chapter 82.

Sec. 33.

Minnesota Statutes 2012, section 83.26, subdivision 2, is amended to read:

Subd. 2.

Generally; transactions.

Unless the method of offer or sale is adopted
for the purpose of evasion of sections 83.20 to 83.42, 83.43 and 83.44, the following
transactions are exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and 83.30:

(a) the offer or sale of an interest in subdivided land by an owner, other than the
subdivider, acting as principal in a single or isolated transaction;

(b) the offer or sale of all of the subdivided lands within a subdivision in a single
transaction to any person;

(c) the offer or sale of subdivided land pursuant to an order of competent jurisdiction,
other than a court of bankruptcy;

(d) the offer or sale of subdivided land consisting of not more than ten separate lots,
units, parcels, or interests in the aggregate, provided that no subdivider may make an
offer or sale of subdivided land pursuant to this exemption more than once during any
period of 12 consecutive months;

(e) the offer or sale of subdivided lands which have been registered under section
83.23, subdivision 2, if there are no more than ten separate lots, units, parcels, or interests
remaining to be sold and no material change has occurred in the information on file with
the commissioner;

(f) the offer and sale of subdivided land located within the corporate limits of a
municipality as defined in section 462.352, subdivision 2, which municipality has adopted
subdivision regulations as defined in section 462.352, except those lands described in
section 83.20, subdivision 13;

(g) the offer and sale of apartments or condominium units as defined in chapters 515
and 515A, and units in common interest communities as defined in chapter 515B;

(h) the offer and sale of subdivided lands used primarily for agricultural purposes
provided each parcel is at least ten acres in size;

(i) the offer or sale of improved lots if:

(1) the subdivider has filed with the commissioner, no later than ten business days
prior to the date of the first sale, a written notice of its intention to offer or sell improved
lots, which notice shall be accompanied by a fee of $50, together with a copy of the public
offering statement accepted by the situs state and the standard purchase agreement which
documents are required to be supplied by the subdivider to the purchaser; and

(2) the subdivider deposits all downpayments in an escrow account until all
obligations of the subdivider to the purchaser, which are pursuant to the terms of the
purchase agreement to be performed prior to the closing, have been performed. The
subdivider shall provide the purchaser with a purchase receipt for the downpayment paid,
a copy of the escrow agreement and the name, address, and telephone number of the
escrow agent. The escrow agent shall be a bank located in Minnesota. All downpayments
shall be deposited in the escrow account within two business days after receipt; and

(j) the offer of sale of subdivided lands by a subdivider that has been granted
an exemption from registration by the federal Department of Housing and Urban
Development under the multiple site subdivision exemption, if the subdivider provides a
written notice of the offer of sale to the commissioner before any offers or sale commence.

The written notice must include the name of the subdivision, the county and state
in which the subdivision is located, and the number of lots in the subdivision, and a
notarized affidavit that all proposed improvements have been completed and the costs of
all the improvements have been fully paid, or that the cost of any uncompleted road
construction or survey expenses are covered by a bond or escrow account payable to the
entities responsible for providing or completing the roads or surveys. The escrow account
must be with an independent escrow agent.

The subdivider must also provide to the commissioner a copy of the federal Housing
and Urban Development exemption order and the most recent annual confirmation letter
which indicates that the order is still in effect.

If the closing services are provided by the subdivider or an affiliate of the subdivider,
purchasers must manually initial in the Housing and Urban Development Lot Information
Statement both the disclosure on all the liens, reservations, taxes, assessments, easements,
and restrictions applicable to the lot purchased and the disclosure on the risks of not
obtaining clear title.

The commissioner may, by rule or order, suspend, revoke, or further condition the
exemptions contained in clauses (f), (g), (h), (i), and (j), or may require such further
information as may be necessary for the protection of purchasers.

deleted text begin The commissioner may by rule or order suspend, revoke, or further condition
the exemptions contained in clauses (f), (g), (h), and (i) or may require such further
information as may be necessary for the protection of purchasers.
deleted text end

Sec. 34.

Minnesota Statutes 2012, section 83.30, subdivision 1, is amended to read:

Subdivision 1.

Form; due date.

During the period a registration is effective, the
subdivider shall file an annual report in a format the commissioner may by rule prescribe
new text begin for subdivisions under section 83.23, subdivision 3. Subdividers under section 83.23,
subdivision 2, shall not be required to file the annual report form except by order of the
commissioner but are required to submit the fee under section 83.30, subdivision 2new text end . deleted text begin The
report must include a financial statement of the subdivider's most recent fiscal year,
prepared by an accountant and certified by the subdivider. An audited financial statement
shall not be required.deleted text end Every annual report shall be due by the 120th day following the end of
the subdivider's fiscal year, unless extended in writing by the commissioner for good cause.

Sec. 35.

Minnesota Statutes 2013 Supplement, section 237.036, is amended to read:

237.036 COIN-OPERATED OR PUBLIC PAY TELEPHONES.

(a) Neither commission approval nor a commission certificate is required to:

(1) site a coin-operated or public pay telephone in the state; or

(2) implement changes in service, services offered, rates, or location regarding a
coin-operated or public pay telephone. Registration under section 237.64 is required to
own or operate a coin-operated or public pay telephone in the state.

(b) This section does not change the authority of other state or local government
entities to regulate aspects of coin-operated or public pay telephone ownership, location,
or operation; however, an entity may not regulate aspects of these services that it did not
regulate prior to May 26, 1999. The commission shall retain the authority delegated to
it under federal and state law to protect the public interest with regard to coin-operated
or public pay telephones.

(c) Owners and operators of coin-operated or public pay telephones are exempt from
sections 237.06, 237.07, 237.075, 237.09, 237.23, 237.295, deleted text begin and 237.39deleted text end and the annual
reporting requirement of section 237.11.

(d) Owners of coin-operated or public pay telephones shall:

(1) provide immediate coin-free access, to the extent technically feasible, to 911
emergency service or to another approved emergency service; and

(2) provide free access to the telecommunications relay service for people with
communication disabilities.

(e) Owners of coin-operated or public pay telephones must post at each coin-operated
or public pay telephone location:

(1) customer service and complaint information, including the name, address, and
telephone number of the owner of the coin-operated or public pay telephone and the
operator service handling calls from the coin-operated or public pay telephone; a toll-free
number of the appropriate telephone company for the resolution of complaints; and the
toll-free number of the public utilities commission; and

(2) a toll-free number at which consumers can obtain pricing information regarding
rates, charges, terms, and conditions of local and long-distance calls.

Sec. 36.

Minnesota Statutes 2012, section 237.04, is amended to read:

237.04 WIRE CROSSING OR PARALLELING UTILITY LINE; RULES.

(a) The department deleted text begin shall determine and promulgate reasonable rules covering the
maintenance and operation, also the nature, location, and character of the construction to
be used, where telephone, telegraph, electric light, power, or other electric wires of any
kind, or any natural gas pipelines, cross, or more or less parallel the lines of any railroad,
or any other similar public service corporation; and, to this end, shall formulate and from
time to time, issue general rules covering each class of construction, maintenance, and
operation of such telephone, telegraph, telecommunications, cable, fiber optic, electric
wire, or natural gas pipeline crossing, or paralleling, under the various conditions existing;
and the departmentdeleted text end , upon the complaint of any person, railroad, municipal utility,
cooperative electric association, telephone company, telecommunications carrier, cable
company, fiber optic carrier, or other public utility claiming to be injuriously affected or
subjected to hazard by any deleted text begin suchdeleted text end crossing or parallelingnew text begin of thenew text end linesnew text begin of any railroad or other
similar public service corporation,new text end constructed or about to be constructed, shall, after a
hearing, make such order and prescribe such terms and conditions for the construction,
maintenance, and operation of the lines in question as may be just and reasonable.

(b) The department may, upon request of any municipal utility, electric cooperative
association, public utility, telephone company, telecommunications carrier, cable
company, or fiber optic carrier determine the just and reasonable charge which a railroad,
or owner of an abandoned railroad right-of-way, other than the state or a regional railroad
authority, can prescribe for a new or existing crossing of a railroad right-of-way by any
telephone, telegraph, telecommunications, cable, fiber optic, electric, or gas line, or new
or existing telephone, telegraph, telecommunications, cable, fiber optic, electric, or gas
line more or less paralleling a railroad right-of-way, based on the diminution in value
caused by the crossing or paralleling of the right-of-way by the telephone, telegraph,
telecommunications, cable, fiber optic, electric, or gas line. This section shall not be
construed to eliminate the right of a public utility, municipal utility, or electric cooperative
association to have any of the foregoing issues determined pursuant to an eminent domain
proceeding commenced under chapter 117. Unless the railroad, or owner of an abandoned
railroad right-of-way, other than the state or a regional railroad authority, asserts in writing
that the proposed crossing or paralleling is a serious threat to the safe operations of the
railroad or to the current use of the railroad right-of-way, a crossing can be constructed
following filing of the requested action with the department, pending review of the
requested action by the department.

(c) The department shall assess the cost of reviewing the requested action, and of
determining a just and reasonable charge, equally among the parties.

(d) For the purposes of this section, "parallel" or "paralleling" means that the
relevant utility facilities run adjacent to and alongside the lines of a railroad for no more
than one mile, or another distance agreed to by the parties, before the utility facilities cross
the railroad lines, terminate, or exit the railroad right-of-way.

Sec. 37.

Minnesota Statutes 2012, section 237.14, is amended to read:

237.14 RATE FOR SERVICE TO OFFICER.

A telephone company may furnish service free or at reduced rates to its officers,
agents, or employees in furtherance of their employment, but it shall charge full schedule
rates without discrimination for all other services. deleted text begin Nothing herein shall release any
telephone company from carrying out any contract now existing between it and any
municipality for the furnishing of any service free or at reduced rates. Any contract for
telephone service, at discriminatory rates, other than those with municipalities, shall be
terminated by the company as soon as the same becomes terminable by its terms.
deleted text end

Sec. 38.

Minnesota Statutes 2012, section 237.16, subdivision 8, is amended to read:

Subd. 8.

Rules.

(a) deleted text begin Before August 1, 1997,deleted text end The commission shall adopt rules
applicable to all telephone companies and telecommunications carriers required to obtain
or having obtained a certificate for provision of telephone service using any existing
federal standards as minimum standards and incorporating any additional standards
or requirements necessary to ensure the provision of high-quality telephone services
throughout the state. The rules must, at a minimum:

(1) define procedures for competitive entry and exit;

(2) require the provisions of equal access and interconnection with the company's
network and other features, functions, and services which the commission considers
necessary to promote fair and reasonable competition;

(3) require unbundling of network services and functions to at least the level required
by existing federal standards;

(4) prescribe, if necessary, methods of reciprocal compensation between telephone
companies;

(5) provide for local telephone number portability;

(6) prescribe appropriate regulatory standards for new local telephone service
providers, that facilitate and support the development of competitive services;

(7) protect against cross-subsidization, unfair competition, and other practices
harmful to promoting fair and reasonable competition;

(8) prescribe methods for the preservation of universal and affordable local
telephone services;

(9) prescribe standards for quality of service;

(10) provide for the continued provision of local emergency telephone services
under chapter 403; and

(11) protect residential and commercial customers from unauthorized changes in
service providers in a competitively neutral manner.

(b) deleted text begin Before January 1, 1998, in a separate rulemaking,deleted text end The commission shall adopt
separate rules regarding the issues described in paragraph (a), clauses (1) to (11), as may
be appropriate to provision of competitive local telephone service in areas served by
telephone companies with less than 50,000 subscribers deleted text begin originally certified to provide local
telephone services before January 1, 1988deleted text end .

Sec. 39.

Minnesota Statutes 2013 Supplement, section 237.16, subdivision 9, is
amended to read:

Subd. 9.

Universal service fund.

The commission shall establish and require
contributions to a universal service fund, to be supported by all providers of telephone
services, whether or not they are telephone companies under section 237.01, including, but
not limited to, local telephone companies, independent telephone companies, cooperative
telephone companies, municipal telephone companies, telecommunications carriers,
radio common carriers, personal communication service providers, and cellular carriers.
Services that should be considered for inclusion as universal include, at a minimum,
single-party service including access, usage and touch-tone capability; line quality
capable of carrying facsimile and data transmissions; equal access; emergency services
number capability; statewide telecommunications relay service for people with hearing
loss; and blocking of long-distance toll services. The fund must be administered and
distributed in accordance with rules adopted by the commission and designed to preserve
the availability of universal service throughout the state. Any state universal service fund
must be coordinated with any federal universal service fund and be consistent with section
254(b)(1) to (5) of the federal Telecommunications Act of 1996, Public Law 104-104. deleted text begin The
department shall make recommendations to the legislature by January 1, 1996, regarding a
plan for contributions to and expenditures from the universal service fund. In particular,
the department shall address the following issues:
deleted text end

deleted text begin (1) what additional services should be included in the basic set of essential telephone
services which the state should encourage in its mandate to ensure universal service;
deleted text end

deleted text begin (2) whether and how expenditures from the fund should be used to ensure citizens
access to local government and other public access programming; and
deleted text end

deleted text begin (3) whether expenditures from the fund should be used to encourage construction
of infrastructure for, and access to, advanced services, especially in high-cost areas of
the state, and, if the commission determines the fund should be used for this purpose, a
plan to accomplish these goals.
deleted text end

Sec. 40.

Minnesota Statutes 2012, section 237.16, subdivision 12, is amended to read:

Subd. 12.

Extension of interexchange facility.

In order to promote the
development of competitive interexchange services and facilities, any interexchange
facility that is owned by a certified telephone company, independent telephone company,
telecommunications carrier or an affiliate and that is used to provide service to customers
located in areas for which it has been previously certified to provide service may be
extended to meet and interconnect with the facility of another telephone company, small
telephone company, or telecommunications carrier, whether at a point inside or outside
of its territories, without further proceeding, order, or determination of current or future
public convenience and necessity, upon mutual consent with the other telephone company,
small telephone company, or telecommunications carrier whose facilities will be met and
interconnected. Written notice of the extension and interconnection must be provided to
the Public Utilities Commission and Department of Public Safety within 30 days after
completion. The written notice must be served on allnew text begin incumbentnew text end local exchange companies
deleted text begin certified before January 1, 1988,deleted text end in all areas where the facilities are located.

Sec. 41.

Minnesota Statutes 2012, section 237.164, is amended to read:

237.164 UNIVERSAL SERVICE DISCOUNT FOR SCHOOL OR LIBRARY.

The commission shall establish intrastate service discounts for schools and libraries
by order to the extent deleted text begin and within the time framedeleted text end necessary to enable schools and libraries
to deleted text begin begin receivingdeleted text end new text begin receivenew text end federally supported discounts deleted text begin at the earliest date permitted by
the Federal Communications Commissiondeleted text end .

Sec. 42.

Minnesota Statutes 2012, section 237.17, is amended to read:

237.17 EXTENSION OF LONG-DISTANCE LINE.

Any telephone company may extend its long-distance lines into or through any city
of this state for the furnishing of long-distance service only, subject to deleted text begin the regulation of
the governing body of such city relative to the location of the poles and wires and the
preservation of the safe and convenient use of such streets and alleys to the publicdeleted text end new text begin sections
237.162 and 237.163new text end .

Sec. 43.

Minnesota Statutes 2012, section 237.30, is amended to read:

237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.

deleted text begin The sum of $25,000 is hereby appropriated out of any moneys in the state treasury
not otherwise appropriated, to establish and provide a revolving fund to be known as the
deleted text end new text begin A new text end Minnesota Telephone Investigation Fundnew text begin shall existnew text end for the use of the Department of
Commerce and of the attorney general in investigations, valuations, and revaluations
under section 237.295. All sums paid by the telephone companies to reimburse the
department for its expenses pursuant to section 237.295 shall be credited to the revolving
fund and shall be deposited in a separate bank account and not commingled with any other
state funds or moneys, but any balance in excess of $25,000 in the revolving fund at the
end of each fiscal year shall be paid into the state treasury and credited to the general fund.
deleted text begin The sum of $25,000 herein appropriated anddeleted text end All subsequent credits to said revolving fund
shall be paid upon the warrant of the commissioner of management and budget upon
application of the department or of the attorney general to an aggregate amount of not
more than one-half of such sums to each of them, which proportion shall be constantly
maintained in all credits and withdrawals from the revolving fund.

Sec. 44.

Minnesota Statutes 2012, section 237.46, is amended to read:

237.46 GROSS MISDEMEANOR VIOLATION.

Any telephone companynew text begin or telecommunications carriernew text end and, if it be a corporation,
the officers thereof, violating any provisions of deleted text begin sections 237.01 to 237.27,deleted text end new text begin this chapter
new text end shall be guilty of a gross misdemeanor.

Sec. 45.

Minnesota Statutes 2012, section 237.491, is amended to read:

237.491 COMBINED PER NUMBER FEE.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "911 emergency and public safety communications program" means the program
governed by chapter 403.

(c) "Minnesota telephone number" means a ten-digit telephone number being used
to connect to the public switched telephone network and starting with area code 218, 320,
507, 612, 651, 763, or 952, or any subsequent area code assigned to this state.

(d) "Service provider" means a provider doing business in this state who provides
real-time, two-way voice service with a Minnesota telephone number.

(e) "Telecommunications access Minnesota program" means the program governed
by sections 237.50 to 237.55.

(f) "Telephone assistance program" means the program governed by sections 237.69
to deleted text begin 237.711deleted text end new text begin 237.71new text end .

Subd. 2.

Per number fee.

(a) deleted text begin By January 15, 2006, the commissioner of commerce
shall report to the legislature and to the senate Committee on Jobs, Energy and Community
Development and the house of representatives Committee on Regulated Industries,
recommendations for the amount of and method for assessing a fee that would apply to
each service provider based upon the number of Minnesota telephone numbers in use by
current customers of the service provider.deleted text end new text begin Annually, the commission shall set new text end the fee
would be set at a level calculated to generate only the amount of revenue necessary to fund:

(1) the telephone assistance program and the telecommunications access Minnesota
program at the levels established by the commission under sections 237.52, subdivision
2, and 237.70; and

(2) the 911 emergency and public safety communications program at the levels
appropriated by law to the commissioner of public safety and the commissioner of
management and budget for purposes of sections 403.11, 403.113, 403.27, 403.30, and
403.31 for each fiscal year.

(b) The recommendations must include any changes to Minnesota Statutes necessary
to establish the procedures whereby each service provider, to the extent allowed under
federal law, would collect and remit the fee proceeds to the commissioner of revenue. The
commissioner of revenue would allocate the fee proceeds to the three funding areas in
paragraph (a) and credit the allocations to the appropriate accounts.

(c) deleted text begin The recommendations must be designed to allow the combined per telephone
number fee to be collected beginning July 1, 2006.deleted text end The per access line fee used to collect
revenues to support the TAP, TAM, and 911 programs remains in effect until the statutory
changes necessary to implement the per telephone number fee have been enacted into
law and taken effect.

deleted text begin (d) As part of the process of developing the recommendations and preparing the
report to the legislature required under paragraph (a), the commissioner of commerce
must, at a minimum, consult regularly with the Departments of Public Safety, Management
and Budget, and Administration, the Public Utilities Commission, service providers,
the chairs and ranking minority members of the senate and house of representatives
committees, subcommittees, and divisions having jurisdiction over telecommunications
and public safety, and other affected parties.
deleted text end

Sec. 46.

Minnesota Statutes 2012, section 237.69, subdivision 1, is amended to read:

Subdivision 1.

Scope.

The terms used in sections 237.69 to deleted text begin 237.711deleted text end new text begin 237.71new text end have
the meanings given them in this section.

Sec. 47.

Minnesota Statutes 2012, section 237.69, subdivision 15, is amended to read:

Subd. 15.

Income.

For purposes of sections 237.69 to deleted text begin 237.711deleted text end new text begin 237.71new text end , "income"
has the meaning given it in section 290A.03, subdivision 3.

Sec. 48.

Minnesota Statutes 2012, section 237.69, subdivision 16, is amended to read:

Subd. 16.

Telephone assistance plan.

"Telephone assistance plan" means the plan
to be adopted by the commission and to be jointly administered by the commission, the
Department of Human Services, and the telephone companies, as required by sections
237.69 to deleted text begin 237.711deleted text end new text begin 237.71new text end .

Sec. 49.

Minnesota Statutes 2012, section 237.71, is amended to read:

237.71 TAP RULES.

The commission shall adopt rules under the Administrative Procedure Act necessary
or appropriate to deleted text begin establishdeleted text end new text begin administernew text end the telephone assistance plan in accordance with
this chapter deleted text begin so that the telephone assistance plan is effective as of January 1, 1988, or as
soon after that date as Federal Communications Commission approval of the telephone
assistance plan is obtaineddeleted text end .

Sec. 50.

Minnesota Statutes 2012, section 239.011, subdivision 2, is amended to read:

Subd. 2.

Duties and powers.

To carry out the responsibilities in section 239.01
and subdivision 1, the director:

(1) shall take charge of, keep, and maintain in good order the standard of weights
and measures of the state and keep a seal so formed as to impress, when appropriate, the
letters "MINN" and the date of sealing upon the weights and measures that are sealed;

(2) has general supervision of the weights, measures, and weighing and measuring
devices offered for sale, sold, or in use in the state;

(3) shall maintain traceability of the state standards to the national standards of the
National Institute of Standards and Technology;

(4) shall enforce this chapter;

(5) shall grant variances from department rules, within the limits set by rule, when
appropriate to maintain good commercial practices or when enforcement of the rules
would cause undue hardship;

(6) shall conduct investigations to ensure compliance with this chapter;

(7) may delegate to division personnel the responsibilities, duties, and powers
contained in this section;

(8) shall test annually, and approve when found to be correct, the standards of
weights and measures used by the division, by a town, statutory or home rule charter city,
or county within the state, or by a person using standards to repair, adjust, or calibrate
commercial weights and measures;

(9) shall inspect and test weights and measures kept, offered, or exposed for sale;

(10) shall inspect and test, to ascertain if they are correct, weights and measures
commercially used to:

(i) determine the weight, measure, or count of commodities or things sold, offered,
or exposed for sale, on the basis of weight, measure, or count; and

(ii) compute the basic charge or payment for services rendered on the basis of
weight, measure, or count;

(11) shall approve for use and mark weights and measures that are found to be correct;

(12) shall reject, and mark as rejected, weights and measures that are found to be
incorrect and may seize them if those weights and measures:

(i) are not corrected within the time specified by the director;

(ii) are used or disposed of in a manner not specifically authorized by the director; or

(iii) are found to be both incorrect and not capable of being made correct, in which
case the director shall condemn those weights and measures;

(13) shall weigh, measure, or inspect packaged commodities kept, offered, or exposed
for sale, sold, or in the process of delivery, to determine whether they contain the amount
represented and whether they are kept, offered, or exposed for sale in accordance with
this chapter and department rules. In carrying out this section, the director must employ
recognized sampling procedures, such as those contained in National Institute of Standards
and Technology Handbook 133, "Checking the Net Contents of Packaged Goods";

(14) shall prescribe the appropriate term or unit of weight or measure to be used for
a specific commodity when an existing term or declaration of quantity does not facilitate
value comparisons by consumers, or creates an opportunity for consumer confusion;

(15) shall allow reasonable variations from the stated quantity of contents, including
variations caused by loss or gain of moisture during the course of good distribution
practice or by unavoidable deviations in good manufacturing practice, only after the
commodity has entered commerce within the state;

(16) shall inspect and test petroleum products in accordance with this chapter and
chapter 296A;

(17) deleted text begin shall distribute and post notices for used motor oil and used motor oil filters and
lead acid battery recycling in accordance with sections 239.54, 325E.11, and 325E.115;
deleted text end

deleted text begin (18)deleted text end shall collect inspection fees in accordance with sections 239.10 and 239.101; and

deleted text begin (19)deleted text end new text begin (18)new text end shall provide metrological services and support to businesses and
individuals in the United States who wish to market products and services in the member
nations of the European Economic Community, and other nations outside of the United
States by:

(i) meeting, to the extent practicable, the measurement quality assurance standards
described in the International Standards Organization ISO 17025;

(ii) maintaining, to the extent practicable, certification of the metrology laboratory
by an internationally accepted accrediting body such as the National Voluntary Laboratory
Accreditation Program (NVLAP); and

(iii) providing calibration and consultation services to metrology laboratories in
government and private industry in the United States.

Sec. 51.

Minnesota Statutes 2012, section 239.06, is amended to read:

239.06 RULES.

The department shall prescribe and adopt such rules as it may deem necessary to
carry out the provisions of this chapter, deleted text begin and itdeleted text end new text begin including but not limited tonew text end new text begin the adoption of
definitions of basic units of weights and measures, tables of weights and measures, and
weights and measures equivalents to govern weighing and measuring equipment and
transactions in Minnesota. The divisionnew text end may change, modify, or amend any or all rules
when deemed necessary and the rules deleted text begin so madedeleted text end shall have the force and effect of law.

Sec. 52.

Minnesota Statutes 2012, section 239.081, is amended to read:

239.081 INSPECTING TRACK SCALE.

The deleted text begin departmentdeleted text end new text begin divisionnew text end shall supervise and inspect all track scales, and may direct
any carrier to transport, move, and switch to any track scale free of charge any car used in
the inspection and testing of scales. The deleted text begin departmentdeleted text end new text begin divisionnew text end shall require the installation
and maintenance of track scales at terminals, warehouses, and at other points in the state
where scales are deemed necessary. The deleted text begin departmentdeleted text end new text begin divisionnew text end shall prescribe reasonable
rules for the weighing of railroad cars and of freight. deleted text begin Rules of the department promulgated
under chapter 218 and in effect on January 1, 1976, which pertain to installation or
inspection of track scales or the weighing of railroad cars and freight shall continue in
effect until amended or repealed by the department.
deleted text end

Sec. 53.

Minnesota Statutes 2012, section 239.09, is amended to read:

239.09 SPECIAL POLICE POWERS.

When necessary to enforce this chapter or rules adopted under the authority granted
by section 239.06, the director is:

(1) deleted text begin authorized and empowered to arrest, without formal warrant, any violator of
sections 325E.11 and 325E.115 or of the statute in relation to weights and measures;
deleted text end

deleted text begin (2)deleted text end empowered to seize for use as evidence and without formal warrant, any false
weight, measure, weighing or measuring device, package, or commodity found to be used,
retained, or offered or exposed for sale or sold in violation of law;

deleted text begin (3)deleted text end new text begin (2)new text end during normal business hours, authorized to enter commercial premises;

deleted text begin (4)deleted text end new text begin (3)new text end if the premises are not open to the public, authorized to enter commercial
premises only after presenting credentials and obtaining consent or after obtaining a
search warrant;

deleted text begin (5)deleted text end new text begin (4)new text end empowered to issue stop-use, hold, and removal orders with respect to
weights and measures commercially used, and packaged commodities or bulk commodities
kept, offered, or exposed for sale, that do not comply with the weights and measures laws;

deleted text begin (6)deleted text end new text begin (5)new text end empowered, upon reasonable suspicion of a violation of the weights and
measures laws, to stop a commercial vehicle and, after presentation of credentials, inspect
the contents of the vehicle, require that the person in charge of the vehicle produce
documents concerning the contents, and require the person to proceed with the vehicle to
some specified place for inspection; and

deleted text begin (7)deleted text end new text begin (6)new text end empowered, after written warning, to issue citations of not less than $100 and
not more than $500 to a person who violates any provision of this chapter, any provision
of the rules adopted under the authority contained in this chapter, or any provision of
statutes enforced by the Division of Weights and Measures.

Sec. 54.

Minnesota Statutes 2012, section 239.091, is amended to read:

239.091 METHOD OF SALE.

The method of sale for a commodity must provide an accurate and adequate quantity
of information that will allow the buyer to make price and quantity comparisons. deleted text begin The
department may adopt rules to administer this section.
deleted text end

Sec. 55.

Minnesota Statutes 2013 Supplement, section 239.101, subdivision 3, is
amended to read:

Subd. 3.

Petroleum inspection fee; appropriation, uses.

(a) An inspection fee
is imposed (1) on petroleum products when received by the first licensed distributor,
and (2) on petroleum products received and held for sale or use by any person when the
petroleum products have not previously been received by a licensed distributor. The
petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
revenue shall collect the fee. The revenue from 89 cents of the fee is appropriated to
the commissioner of commerce for the cost of operations of the Division of Weights
and Measuresdeleted text begin ,deleted text end new text begin andnew text end petroleum supply monitoringdeleted text begin , and to make grants to providers of
low-income weatherization services to install renewable energy equipment in households
that are eligible for weatherization assistance under Minnesota's weatherization assistance
program state plandeleted text end . The remainder of the fee must be deposited in the general fund.

(b) The commissioner of revenue shall credit a person for inspection fees previously
paid in error or for any material exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.

Sec. 56.

Minnesota Statutes 2012, section 239.44, is amended to read:

239.44 MISDEMEANOR VIOLATION.

Whoever new text begin in selling gives a lower number or, new text end in buying deleted text begin shall take anydeleted text end new text begin , takes a new text end greater
number of pounds or cubic feet to the bushel, barrel, ton, or cord, as the case may be, than
is allowed and provided in sections deleted text begin 239.28 to 239.36deleted text end new text begin 239.32 and 239.33new text end , or in selling,
deleted text begin shall give any lessdeleted text end new text begin gives a lowernew text end number, deleted text begin shall bedeleted text end new text begin isnew text end guilty of a misdemeanor.

Sec. 57.

Minnesota Statutes 2012, section 239.46, is amended to read:

239.46 FINES CREDITED TO SCHOOL FUNDS.

All fines collected under the provisions of sections deleted text begin 239.28 to 239.38deleted text end new text begin 239.32 and
239.33new text end shall be paid to the county treasurer for the benefit of the school fund of the county
where the action is brought.

Sec. 58.

Minnesota Statutes 2012, section 239.75, subdivision 1, is amended to read:

Subdivision 1.

Inspection requirements; blending exemptions.

The director shall:

(1) take samples, free of charge, of petroleum products wherever processed, blended,
held, stored, imported, transferred, offered for sale or use, or sold in Minnesota, limiting
each sample to one-half gallon;

(2) deleted text begin inspect and test petroleum product samples according to the methods of ASTM
or other valid test methods adopted by rule, to determine whether the products comply
with the specifications in section 239.761;
deleted text end

deleted text begin (3)deleted text end inspect petroleum product storage tanks to ensure that the products are free
from water and impurities;

deleted text begin (4)deleted text end new text begin (3)new text end inspect and test samples submitted to the department by a licensed distributor,
making the test results available to the distributor;

deleted text begin (5)deleted text end new text begin (4)new text end inspect the labeling, price posting, and price advertising of petroleum product
dispensers and advertising signs at businesses or locations where petroleum products are
sold, offered for sale or use, or dispensed into motor vehicles;

deleted text begin (6)deleted text end new text begin (5)new text end maintain records of all inspections and tests according to the records retention
policies of the Department of Administration;

deleted text begin (7) delegate to division personnel, at the director's discretion, any or all of the
responsibilities, duties, and powers in sections 239.75 to 239.80;
deleted text end

deleted text begin (8)deleted text end new text begin (6)new text end publish test data and information to assist persons who use, produce,
distribute, or sell petroleum-based heating and engine fuels;

deleted text begin (9)deleted text end new text begin (7)new text end audit the records of any person responsible for the product to determine
compliance with sections 239.75 to 239.792;

deleted text begin (10)deleted text end new text begin (8)new text end after consulting with the commissioner, grant a temporary exemption from
the gasoline-ethanol blending requirements in section 239.791 if the supply of ethanol is
insufficient to produce gasoline-ethanol blends;

deleted text begin (11)deleted text end new text begin (9)new text end after consulting with the commissioner, grant a temporary exemption from
the diesel-biodiesel blending requirements in section 239.77, if the supply of biodiesel is
insufficient to produce diesel-biodiesel blends; and

deleted text begin (12)deleted text end new text begin (10)new text end adopt, as an enforcement policy for the division, reasonable margins of
uncertainty for the tests used to determine compliance with the specifications in section
239.761, the oxygen percentages in section 239.791, and the octane requirements in
section 239.792 and apply the margins of uncertainty to only tests performed by the
division, not by adding the margins to uncertainties in tests performed by any person
responsible for the product.

Sec. 59.

Minnesota Statutes 2012, section 239.753, is amended to read:

239.753 ENTRY UPON PREMISES AND ACCESS TO RECORDS.

(a) The director, or a delegated employee of the department, may enter the premises
of a person who processes, holds, stores, imports, transfers, offers for sale or use, or
sells petroleum products in Minnesota to:

(1) inspect the product in storage tanks and take samples from the storage tanks and
dispensing equipment connected to the storage tanks;

(2) inspect petroleum product dispensers and related signs and equipment,
advertising signs, price displays, oxygenate labels, and octane labels; and

(3) audit and make copies of petroleum product shipping, receiving, and invoice
documents and records to determine compliance with sections 239.75 to 239.792.

(b) The director shall limit inspection to information and data relating to product
quantity, quality, deleted text begin oxygendeleted text end new text begin biofuelnew text end content, and octane. The director shall maintain the
confidentiality of certain records as required by section 239.791.

Sec. 60.

Minnesota Statutes 2012, section 239.80, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Violations; enforcement actions of department;deleted text end Waiver.

deleted text begin (a) The
director, or any delegated employee shall use the methods in section 239.75 to enforce
sections 239.10; 239.101, subdivision 3; 239.761; 239.77; 239.79; 239.791; and 239.792.
deleted text end

deleted text begin (b)deleted text end The director or any delegated employee may waive a penalty for a violation
under section 239.77 or 239.791 on a retailer when ethanol or biodiesel are not available
at a pipeline or refinery to meet the blending requirements of this chapter, and the terminal
has had ethanol or biodiesel blended products available to the licensed distributor for 20 of
the previous 30 days. The director or delegated employee shall use the reports required
in section 239.754 or other available information in making a determination under this
paragraph. The commissioner shall work with the commissioner of agriculture, biodiesel
producers, ethanol producers, pipeline operators, and terminal operators, to ensure that
biodiesel and ethanol are available for blending at pipeline and refinery terminals where
diesel fuel and gasoline are sold and destined for use in Minnesota.

Sec. 61.

Minnesota Statutes 2012, section 270B.14, subdivision 1, is amended to read:

Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request
of the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to
the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity,
whereabouts, employment, income, and property of a person owing or alleged to be owing
an obligation of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only
as set forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to
administer the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of
revenue shall electronically match the Social Security numbers and names of participants
in the telephone assistance plan operated under sections 237.69 to deleted text begin 237.711deleted text end new text begin 237.71new text end , with
those of property tax refund filers, and determine whether each participant's household
income is within the eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and
Human Services to maintain the confidentiality of the data, the commissioner may provide
records and information collected under sections 295.50 to 295.59 to the Centers for
Medicare and Medicaid Services section of the United States Department of Health and
Human Services for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human
services necessary to verify income for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2.

(i) The commissioner may disclose information to the commissioner of human
services necessary to verify whether applicants or recipients for the Minnesota family
investment program, general assistance, food support, Minnesota supplemental aid
program, and child care assistance have claimed refundable tax credits under chapter 290
and the property tax refund under chapter 290A, and the amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human
services necessary to verify income for purposes of calculating parental contribution
amounts under section 252.27, subdivision 2a.

Sec. 62.

Minnesota Statutes 2012, section 332.33, subdivision 5, is amended to read:

Subd. 5.

Collection agency license issuance.

deleted text begin Every application for a collection
agency license or renewal shall be acted upon promptly by the commissioner but in no
event more than 45 days after receipt of the application. Each applicant may be issued a
temporary license after submitting a complete application which meets all requirements
for licensure. This license shall be effective until a permanent license is issued by the
commissioner. If the application complies in form and substance with sections 332.31
to 332.45 and the rules adopted under those sections and the commissioner finds that
the applicant is qualified under sections 332.31 to 332.45, the commissioner shall issue
a license immediately. If the application is not sufficient in form or substance, the
commissioner shall reject it and notify the applicant of the manner in which it is deficient.
The rejection is without prejudice to the filing of a new application.deleted text end On finding that deleted text begin thedeleted text end new text begin an
new text end applicantnew text begin for a collection agency licensenew text end is not qualified under sections 332.31 to 332.45,
the commissioner shall reject the application and shall give the applicant written notice of
the rejection and the reasons for the rejection.

Sec. 63.

Minnesota Statutes 2012, section 332.33, subdivision 5a, is amended to read:

Subd. 5a.

Individual collector registration.

A licensed collection agency, on behalf
of an individual collector, must register with the state all individuals in the collection
agency's employ who are performing the duties of a collector as defined in sections 332.31
to 332.45. The collection agency must apply for an individual collection registration deleted text begin ondeleted text end new text begin in
new text end a form deleted text begin provideddeleted text end new text begin prescribednew text end by the commissionerdeleted text begin , or electronically when availabledeleted text end . The
collection agency shall verify on the form that the applicant has confirmed that the applicant
meets the requirements to perform the duties of a collector as defined in sections 332.31 to
332.45. Upon submission of the deleted text begin formdeleted text end new text begin applicationnew text end to the department, the individual may
begin to perform the duties of a collector and may continue to do so unless the licensed
collection agency is informed by the commissioner that the individual is ineligible.

Sec. 64.

Minnesota Statutes 2012, section 332.33, subdivision 7, is amended to read:

Subd. 7.

new text begin Changes; new text end noticenew text begin to commissionernew text end .

new text begin (a) new text end A licensed collection agency must
give the commissioner written notice of a change in company name, address, or ownership
not later than deleted text begin 15deleted text end new text begin tennew text end days after the change occurs. A registered individual collector must
give written notice of a change of address, name, or assumed name no later than deleted text begin 30deleted text end new text begin ten
new text end days after the change occurs.

new text begin (b) Upon the death of any collection agency licensee, the license of the decedent
may be transferred to the executor or administrator of the estate for the unexpired term of
the license. The executor or administrator may be authorized to continue or discontinue
the collection business of the decedent under the direction of the court having jurisdiction
of the probate.
new text end

Sec. 65. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Statutory repeals new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 45.0111;
45.25, subdivision 4; 45.42, subdivision 1; 46.045, subdivision 2; 46.046, subdivisions 3
and 4; 46.047; 46.23, subdivision 3; 47.61, subdivision 2; 48.34; 48.92, subdivisions 4
and 5; 53.07; 53A.081; 56.001, subdivisions 4, 5, and 6; 60A.02, subdivision 2; 60A.078;
60A.18; 61A.05; 61A.09, subdivision 4; 61A.11; 61A.16; 61A.17; 61A.18; 62A.319;
62B.07, subdivision 8; 72B.02, subdivision 8; 80C.30; 81A.01; 81A.02, subdivision 5;
81A.08; 81A.18; 82.60, subdivisions 2, 3, and 4; 82.63, subdivisions 7, 9, and 10; 82A.04;
82A.07; 82A.08; 82A.11, subdivision 2; 82A.111, subdivision 5; 82A.13, subdivision 3;
82A.18, subdivision 3; 82A.22, subdivisions 1 and 3; 82A.24, subdivision 5; 82B.021;
115C.01; 115C.111; 237.068; 237.16, subdivisions 10, 11, and 13; 237.18; 237.33; 237.34;
237.35; 237.36; 237.37; 237.38; 237.39; 237.40; 237.44; 237.45; 237.47; 237.67; 237.711;
and 237.80, subdivision 1; 239.001; 239.002; 239.003; 239.012; 239.051, subdivision 7;
239.101, subdivision 4; 239.28; 239.29; 239.30; 239.31; 239.35; 239.36; 239.51; 239.511;
239.53; 239.54; 239.80, subdivisions 2 and 3; 332.45; 386.61, subdivisions 1, 2, and
4; and 609B.109, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2013 Supplement, sections 82.63, subdivision 8; and 82A.06,
subdivision 2, new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Administrative rules repeals. new text end

new text begin Minnesota Rules, parts 2782.0200;
2782.0300; 2782.0400; 2782.0500; 2782.0600; 2782.0700; 2782.0800; 2795.2000;
2830.0010; 2830.0020; 2830.0030; 2830.0040; 2830.0050; 2830.0060; 2830.0070;
2830.0080; 2830.0090; 2830.0100; 2870.0100; 2870.1100; 2870.1200; 2870.1400;
2870.1700; 2870.1800; 2870.1900; 2870.2000; 2870.2100; 2870.2200; 2870.2300;
2870.3100; 2870.3200; 2870.3300; 2870.3400; 2870.3500; 2870.3600; 2870.3700;
2870.3800; 2870.3900; 2870.4000; 2870.4100; 2870.5100; 7601.7010; 7601.7090,
subpart 3; 7601.8000; and 7602.0100, new text end new text begin are repealed.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2012, section 16D.04, subdivision 1, is amended to read:

Subdivision 1.

Duties.

The commissioner shall provide services to the state
and referring agencies to collect debts referred for collection under this chapter. The
commissioner is not a collection agency as defined by section 332.31, subdivision 3, and
is not licensed, bonded, or regulated by the commissioner of commerce under sections
332.31 to 332.35 or 332.38 to deleted text begin 332.45deleted text end new text begin 332.44new text end . The commissioner is subject to section
332.37, except clause (9), (10), (12), or (19). Debts referred to the commissioner for
collection under section 256.9792 may in turn be referred by the commissioner to the
enterprise. An audited financial statement may not be required as a condition of debt
placement with a private agency if the private agency: (1) has errors and omissions
coverage under a professional liability policy in an amount of at least $1,000,000; or (2)
has a fidelity bond to cover actions of its employees, in an amount of at least $100,000. In
cases of debts referred under section 256.9792, the provisions of this chapter and section
256.9792 apply to the extent they are not in conflict. If they are in conflict, the provisions
of section 256.9792 control. For purposes of this chapter, the referring agency for such
debts remains the Department of Human Services.

Sec. 2.

Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:

Subd. 4.

Authority to contract.

The commissioners of revenue and management
and budget may contract with credit bureaus, private collection agencies, and other
entities as necessary for the collection of debts. A private collection agency acting under
a contract with the commissioner of revenue or management and budget is subject to
sections 332.31 to deleted text begin 332.45deleted text end new text begin 332.44new text end , except that the private collection agency may indicate
that it is acting under a contract with the state. The commissioner may not delegate the
powers provided under section 16D.08 to any nongovernmental entity.

Sec. 3.

Minnesota Statutes 2012, section 45.0111, subdivision 2, is amended to read:

Subd. 2.

Nonapplication.

A temporary license as described in this section may not
be issued to an applicant for licensure as a:

(1) currency exchange regulated under chapter 53A;

(2) collection agency regulated under sections 332.31 to deleted text begin 332.45deleted text end new text begin 332.44new text end ;

(3) credit service organization regulated under sections 332.52 to 332.60; or

(4) broker-dealer, investment advisor, or agent regulated under chapter 80A.

Sec. 4.

Minnesota Statutes 2012, section 47.78, is amended to read:

47.78 CONTRACTS TO PROVIDE SERVICES.

(a) Notwithstanding any other law to the contrary, a financial institution, the
"customer institution," may contract with another financial institution, the "service
institution," to grant the service institution the authority to render services to the customer
institution's depositors, borrowers or other customers, provided notice of the proposed
contract is given to the commissioner and the commissioner does not object to the contract
within 30 days of the notice.

(b) For purposes of this section: "Financial institution" means a national banking
association, federal savings association, or federal credit union having its main office in
this state, or a bank, savings bank, savings association, or credit union established and
operating under the laws of this state; and "services" means accepting and receiving
deposits, honoring and paying withdrawals, issuing money orders, cashiers' checks, and
travelers' checks or similar instruments, cashing checks or drafts, receiving loan payments,
receiving or delivering cash and instruments and securities, disbursing loan proceeds by
machine, and any other transactions authorized by section 47.63.

The term also includes a bank subsidiary of a bank holding company or affiliated
savings association to the extent agency activities are permitted under section 18 of the
Federal Deposit Insurance Act, United States Code, title 12, section 1828, as amended,
effective September 29, 1995, and title I, Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994.

(c) A contract entered into pursuant to this section may include authority to conduct
transactions at or through any principal office, branch, or detached facility of either
financial institution which is a party to the contractdeleted text begin , and the service institution is not
considered a branch of the customer institution for purposes of section 48.34deleted text end .

Sec. 5.

Minnesota Statutes 2012, section 48.93, subdivision 1, is amended to read:

Subdivision 1.

Application.

An out-of-state bank holding company may, through a
purchase of stock or assets of a bank, or through a purchase of stock or assets of or merger
with a bank holding company, acquire control in an existing bank or banks whose home
state is Minnesota if it meets the conditions in this sectiondeleted text begin , sections 46.047deleted text end and new text begin section
new text end 46.048 and it files an application in writing with the commissioner on forms provided by
the department. The commissioner, upon receipt of the application, shall act upon it in the
manner provided for in deleted text begin sections 46.047 anddeleted text end new text begin section new text end 46.048, except that the commissioner
may extend the 60-day period an additional 30 days if in the commissioner's judgment any
material information submitted is substantially inaccurate or the acquiring party has not
furnished all the information required by statute, rule, or the commissioner. Within three
days after making the decision to disapprove any proposed acquisition, the commissioner
shall notify the acquiring party in writing of the disapproval. The notice must provide a
statement of the basis for the disapproval.

Sec. 6.

Minnesota Statutes 2012, section 48.93, subdivision 3, is amended to read:

Subd. 3.

Criteria for approval.

Except as otherwise provided by rule of the
department, an application filed pursuant to subdivision 1 must contain the information
required by deleted text begin sections 46.047 anddeleted text end new text begin section new text end 46.048.

Sec. 7.

Minnesota Statutes 2012, section 60A.0782, subdivision 1, is amended to read:

Subdivision 1.

Terms.

For the purpose of sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789,
unless the context clearly indicates otherwise, the terms in this section have the meanings
given them.

Sec. 8.

Minnesota Statutes 2012, section 60A.0782, subdivision 2, is amended to read:

Subd. 2.

Act.

"Act" means sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789.

Sec. 9.

Minnesota Statutes 2012, section 60A.0782, subdivision 5, is amended to read:

Subd. 5.

Legitimate settlement contracts.

"Legitimate settlement contracts"
mean settlement contracts that comply with Minnesota law governing viatical settlement
contracts and that are not prohibited by section 60A.0785 or otherwise part of or in
furtherance of an act, practice, or arrangement that is prohibited by sections deleted text begin 60A.078
deleted text end new text begin 60A.0782new text end to 60A.0789.

Sec. 10.

Minnesota Statutes 2012, section 60A.0782, subdivision 11, is amended to read:

Subd. 11.

Settlement contract.

(a) "Settlement contract" means an agreement
between a policyowner and another person establishing the terms under which
compensation or anything of value will be paid or which compensation or value is
less than the expected death benefit of the insurance policy, in return for the owner's
assignment, transfer, sale, devise, or bequest of the death benefit or ownership of any
portion of the policy. Settlement contract also includes:

(1) the transfer for compensation or value of ownership or beneficial interest in a
trust or other entity that owns such a policy if the trust or other entity was formed or
availed of for the principal purpose of acquiring one or more policies, which policy insures
the life of an individual who is a resident of this state; and

(2) a premium finance loan made for a policy by a lender to a policyowner on,
before, or after the date of issuance of the policy where:

(i) the policyowner or the insured receives a guarantee of a future settlement value
of the policy; or

(ii) the policyowner or the insured agrees to sell the policy or any portion of its death
benefit on any date following the issuance of the policy.

(b) Settlement contract does not include:

(1) a policy loan or accelerated death benefit made by the insurer under the policy's
terms;

(2) loan proceeds that are used solely to pay premiums for the policy and loan-related
costs, including, without limitation, interest, arrangement fees, utilization fees and similar
fees, closing costs, legal fees and expenses, trustee fees and expenses, and third-party
collateral provider fees and expenses, including fees payable to letter of credit issuers;

(3) a loan made by a bank or other licensed financial institution in which the lender
takes an interest in a policy solely to secure repayment of a loan or, if there is a default on
the loan and the policy is transferred, the transfer of such a policy by the lender, as long as
the default itself is not pursuant to an agreement or understanding with any other person
for the purpose of evading regulation under sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789;

(4) an agreement in which all the parties are closely related to the insured by blood
or law or have a lawful substantial economic interest in the continued life, health, and
bodily safety of the person insured or are trusts established for the benefit of such parties;

(5) any designation, consent, or agreement by an insured who is an employee or an
employer in connection with the purchase by the employer, or by a trust established by the
employer, of life insurance on the life of the employee;

(6) a bona fide business succession planning arrangement:

(i) between shareholders in a corporation or between a corporation and one or more
of its shareholders or one or more trusts established by its shareholders;

(ii) between partners in a partnership or between a partnership and one or more of its
partners or one or more trusts established by its partner; or

(iii) between members in a limited liability company or between a limited liability
company and one or more of its members or one or more trusts established by its
members; or

(7) an agreement entered into by a service recipient, or a trust established by the
service recipient, and a service provider, or a trust established by the service provider, who
performs significant services for the service recipient's trade or business.

Sec. 11.

Minnesota Statutes 2012, section 60A.0783, subdivision 2, is amended to read:

Subd. 2.

What constitutes an insurable interest.

Insurable interest, with reference
to insurance on the life of another, includes only the following interests.

(a) An individual has an insurable interest in the life of another person to whom
the individual is closely related by blood or by law and in whom the individual has a
substantial interest engendered by love and affection.

(b) An individual has an insurable interest in the life of another person if such
individual has a lawful and substantial interest in the continued life of the individual
insured, as distinguished from an interest that would arise only by or would be enhanced
in value by the death of the individual insured.

(c) An individual party to a contract for the purchase or sale of an interest in any
business entity and, if applicable, a trust or the trustee of a trust of which the individual is
a settlor, has an insurable interest in the life of each other individual party to the contract,
but only for the purpose of carrying out the intent and purpose of the contract.

(d) A trust, or the trustee of a trust, has an insurable interest in the life of an
individual insured under a life insurance policy owned by the trust, or the trustee of the
trust acting in a fiduciary capacity, if the insured is the settlor of the trust; an individual
closely related by blood or law to the settlor; or an individual in whom the settlor
otherwise has an insurable interest if, in each of the situations described in this paragraph,
the life insurance proceeds are primarily for the benefit of trust beneficiaries having an
insurable interest in the life of the insured and the trust is not used, directly or indirectly,
as part of or in furtherance of an act, practice, or arrangement that is otherwise prohibited
by sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789.

(e) A guardian, trustee, or other fiduciary, acting in a fiduciary capacity, has an
insurable interest in the life of any person for whose benefit the fiduciary holds property,
and in the life of any other individual in whose life the person has an insurable interest so
long as the life insurance proceeds are used primarily for the benefit of persons having an
insurable interest in the life of the insured and the guardianship or fiduciary relationship
is not used, directly or indirectly, as part of or in furtherance of an act, practice, or
arrangement that is otherwise prohibited by sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789.

(f) An organization in section 170(c) of the United States Internal Revenue Code
of 1986, as amended through December 31, 2008, has an insurable interest in the life of
any person who consents in writing to the organization's ownership or purchase of that
insurance.

(g) A trustee, sponsor, or custodian of assets held in any plan governed by the
Employee Retirement Income Security Act of 1974, United States Code, title 29, section
1001, et seq., or in any other retirement or employee benefit plan, has an insurable interest
in the life of any participant in the plan provided consent is obtained in writing from the
participant before the insurance is purchased. An employer, trustee, sponsor, or custodian
may not retaliate or take adverse action against any participant who does not consent to
the issuance of insurance on the participant's life.

(h) A business entity has an insurable interest in the life of any of the owners,
directors, officers, partners, and managers of the business entity or any affiliate or
subsidiary of the business entity, or key employees or key persons of the business entity
or affiliate or subsidiary, provided consent is obtained in writing from key employees or
persons before the insurance is purchased. The business entity or affiliate or subsidiary
may not retaliate or take adverse action against any key employee or person who does
not consent to the issuance of insurance on the key employee or key person's life. For
purposes of this subdivision, a "key employee" or "key person" means an individual
whose position or compensation is described in section 101(j)(2)(A)(ii) of the Internal
Revenue Code of 1986, as amended through December 31, 2008.

(i) A financial institution or other person to whom a debt is owed, whether for the
purposes of premium financing or otherwise, has an insurable interest in the life of the
borrower limited to the amount of debt owed plus reasonable interest and service charges.

Sec. 12.

Minnesota Statutes 2012, section 60A.0783, subdivision 3, is amended to read:

Subd. 3.

Insured's own life.

An individual has an insurable interest in the
individual's own life and an individual of competent legal capacity that procures or
effects a policy on the individual's own life may designate any person as the beneficiary,
provided the policy is not part of or in furtherance of an act, practice, or arrangement that
is otherwise prohibited by sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789.

Sec. 13.

Minnesota Statutes 2012, section 60A.0785, subdivision 3, is amended to read:

Subd. 3.

Legitimate insurance transactions.

Nothing in sections deleted text begin 60A.078
deleted text end new text begin 60A.0782new text end to 60A.0789 prevents:

(1) any policyowner, whether or not the policyowner is also the subject of the
insurance, from entering into a legitimate settlement contract;

(2) any person from soliciting a person to enter into a legitimate settlement contract;

(3) a person from enforcing the payment of proceeds from the interest obtained
under a legitimate settlement contract; or

(4) the assignment, sale, transfer, devise, or bequest with respect to the death benefit
or ownership of any portion of a policy, provided the assignment, sale, transfer, devise, or
bequest is connected to a legitimate settlement contract and not part of or in furtherance
of STOLI practices.

Sec. 14.

Minnesota Statutes 2012, section 60A.0787, subdivision 4, is amended to read:

Subd. 4.

Fraternal benefit societies.

Nothing in sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to
60A.0789 shall prohibit a fraternal benefit society regulated under chapter 64B from
enforcing the terms of its bylaws or rules regarding permitted beneficiaries and owners.

Sec. 15.

Minnesota Statutes 2012, section 60A.0788, subdivision 2, is amended to read:

Subd. 2.

List of fraudulent acts.

All of the following acts are fraudulent when
committed by a person who, with intent to defraud and for the purpose of depriving
another of property or for pecuniary gain, commits, or permits any of its employees or its
agents to commit them:

(1) failing to disclose to the insurer where the insurer has requested such disclosure
that the prospective insured has undergone a life expectancy evaluation;

(2) misrepresenting a person's state of residence or facilitating the change of the state
in which a person resides for the express purpose of evading or avoiding the provisions of
sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789;

(3) presenting, causing to be presented, or preparing with knowledge or belief that it
will be presented to an insurer any false material information, or concealing any material
information, as part of, in support of, or concerning a fact material to one or more of
the following:

(i) a questionnaire as provided for under section 60A.0787; or

(ii) any other documents or communications, whether written or verbal, which are
intended to detect STOLI practices or demonstrate compliance with sections deleted text begin 60A.078
deleted text end new text begin 60A.0782new text end to 60A.0789;

(4) encouraging the insured, policyowner, or owner of a beneficial interest in the
policy to falsely state that the circumstances described in section 60A.0785 are not
present or aiding in the preparation or execution of documents designed to create the false
impression that those circumstances are not present; and

(5) failing to request or to provide the broker certification required by section
60A.0785, subdivision 2, or falsely certifying that the life expectancy evaluation in section
60A.0785, subdivision 2, was not shared with any other person prior to the issuance of
the policy for the purpose of determining the actual or potential value of the policy in the
secondary market.

Sec. 16.

Minnesota Statutes 2012, section 60A.0789, subdivision 1, is amended to read:

Subdivision 1.

Actions to recover death benefits.

(a) If the beneficiary, assignee, or
other payee receives the death benefits under a life insurance policy initiated by STOLI
practices or a policy procured or effected in violation of section 60A.0783 or section
60A.0785, the personal representative of the insured's estate or other lawfully acting agent
may maintain an action to recover such benefits from the person receiving them.

(b) Where a person receives the death benefit as a result of a nonwillful violation
of sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789, the court may limit the recovery to unjust
enrichment, calculated as the benefits received plus interest from the date of receipt,
less premiums paid under the policy by the recipient and any consideration paid by the
recipient to the insured in connection with the policy.

(c) Where a person receives the death benefits as the result of a willful violation of
sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789, the court may, in addition to actual damages,
order the defendant or defendants to pay exemplary damages in an amount up to two times
the death benefits. A pattern of violations of sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789 and
conduct involving one or more fraudulent acts are evidence of willfulness. The exemplary
damages shall be paid to one or more governmental agencies charged with combating
consumer fraud, including the Department of Commerce.

(d) The court may award reasonable attorney fees, together with costs and
disbursements, to any party that recovers damages in any action brought under this
subdivision.

(e) An action under this subdivision must be brought within two years after the
death of the insured.

Sec. 17.

Minnesota Statutes 2012, section 60A.0789, subdivision 2, is amended to read:

Subd. 2.

Enforceability of contracts.

Any contract, agreement, arrangement, or
transaction prohibited under sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789 is voidable.

Sec. 18.

Minnesota Statutes 2012, section 60A.0789, subdivision 4, is amended to read:

Subd. 4.

Effect on other law.

Sections deleted text begin 60A.078deleted text end new text begin 60A.0782new text end to 60A.0789 shall not:

(1) preempt or limit other civil remedies, including, but not limited to, declaratory
judgments, injunctive relief, and interpleaders;

(2) preempt the authority or relieve the duty of other law enforcement or regulatory
agencies to investigate, examine, and prosecute suspected violations of law;

(3) limit the powers granted elsewhere by the laws of this state to the commissioner
or an insurance fraud unit or the attorney general to investigate and examine possible
violations of law and to take appropriate actions against wrongdoers; or

(4) limit the power of this state to punish a person for conduct that constitutes a
crime under other laws of this state.

Sec. 19.

Minnesota Statutes 2012, section 81A.02, subdivision 1, is amended to read:

Subdivision 1.

Terms.

For purposes of sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21, the
terms defined in this section have the meanings given them.

Sec. 20.

Minnesota Statutes 2012, section 81A.02, subdivision 12, is amended to read:

Subd. 12.

Registration.

"Registration" means registration as an athlete agent under
sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21.

Sec. 21.

Minnesota Statutes 2012, section 81A.03, subdivision 2, is amended to read:

Subd. 2.

Subpoena and enforcement powers.

The commissioner may issue
subpoenas for any material that is relevant to the administration of sections deleted text begin 81A.01
deleted text end new text begin 81A.02new text end to 81A.21 and exercise other enforcement powers available to the commissioner
under chapter 45.

Sec. 22.

Minnesota Statutes 2012, section 81A.04, subdivision 1, is amended to read:

Subdivision 1.

General requirement.

Except as otherwise provided in subdivision
2, an individual may not act as an athlete agent in this state without holding a certificate of
registration under section 81A.06 deleted text begin or 81A.08deleted text end .

Sec. 23.

Minnesota Statutes 2012, section 81A.14, subdivision 2, is amended to read:

Subd. 2.

Other intentional conduct.

An athlete agent may not intentionally:

(1) initiate contact with a student athlete unless registered under sections deleted text begin 81A.01
deleted text end new text begin 81A.02new text end to 81A.21;

(2) refuse or fail to retain or permit inspection of the records required to be retained
by section 81A.13;

(3) fail to register when required by section 81A.04;

(4) provide materially false or misleading information in an application for
registration or renewal of registration;

(5) predate or postdate an agency contract; or

(6) fail to notify a student athlete before the student athlete signs or otherwise
authenticates an agency contract for a particular sport that the signing or authentication
may make the student athlete ineligible to participate as a student athlete in that sport.

Sec. 24.

Minnesota Statutes 2012, section 81A.16, subdivision 1, is amended to read:

Subdivision 1.

Private right of action by educational institution.

An educational
institution has a right of action against an athlete agent or a former student athlete for
damages caused by a violation of sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21. In an action under
this section, the court may award costs and reasonable attorney's fees.

Sec. 25.

Minnesota Statutes 2012, section 81A.16, subdivision 2, is amended to read:

Subd. 2.

Damages.

Damages of an educational institution under subdivision 1
include losses and expenses incurred because, as a result of the conduct of an athlete agent
or former student athlete, the educational institution was injured by a violation of sections
deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21 or was penalized, disqualified, or suspended from participation
in athletics by a national association for the promotion and regulation of athletics, by an
athletic conference, or by reasonable self-imposed disciplinary action taken to mitigate
sanctions likely to be imposed by such an organization.

Sec. 26.

Minnesota Statutes 2012, section 81A.16, subdivision 5, is amended to read:

Subd. 5.

Other rights, remedies, or defenses.

Sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21
do not restrict rights, remedies, or defenses of any person under law or equity.

Sec. 27.

Minnesota Statutes 2012, section 81A.17, is amended to read:

81A.17 ADMINISTRATIVE PENALTY.

The commissioner may assess a civil penalty against an athlete agent not to exceed
$25,000 for a violation of sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21, in accordance with chapters
14 and 45.

Sec. 28.

Minnesota Statutes 2012, section 81A.19, is amended to read:

81A.19 ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL
COMMERCE ACT.

Sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21 governing the legal effect, validity, or
enforceability of electronic records or signatures, and of contracts formed or performed
with the use of such records or signatures are intended to conform to the requirements of
section 102 of the Electronic Signatures in Global and National Commerce Act, Public
Law 106-229, 114 Stat. 464 (2000), and supersede, modify, and limit the Electronic
Signatures in Global and National Commerce Act.

Sec. 29.

Minnesota Statutes 2012, section 81A.20, is amended to read:

81A.20 SEVERABILITY.

If any provision of sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21 or its application to any
person or circumstance is held invalid, the invalidity does not affect other provisions or
applications of sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21 which can be given effect without the
invalid provision or application, and to this end the provisions of sections deleted text begin 81A.01deleted text end new text begin 81A.02
new text end to 81A.21 are severable.

Sec. 30.

Minnesota Statutes 2012, section 81A.21, is amended to read:

81A.21 EFFECT ON OTHER LAW.

Sections deleted text begin 81A.01deleted text end new text begin 81A.02new text end to 81A.21 do not limit the applicability of section 325E.33.

Sec. 31.

Minnesota Statutes 2012, section 82A.04, subdivision 2, is amended to read:

Subd. 2.

Application contents.

The application for registration shall include:

deleted text begin (1) an irrevocable appointment of the commissioner to receive service of any lawful
process as required by section 82A.22, subdivision 1;
deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end the name of the campground, the membership camping operator's name
and the address of its principal place of business, the form, date of organization, and
jurisdiction of its organization; and the name and address of each of its offices in this state;

deleted text begin (3)deleted text end new text begin (2)new text end a copy of the membership camping operator's articles of incorporation,
partnership agreement, or joint venture agreement as contemplated or currently in effect;

deleted text begin (4)deleted text end new text begin (3)new text end the name, address, and principal occupation for the past five years of the
membership camping operator and of each controlling person of the membership camping
operator, and the extent and nature of each such person's interest in the membership
camping operator as of a specified date within 30 days prior to the filing of the application;

deleted text begin (5)deleted text end new text begin (4)new text end a statement indicating whether or not the membership camping operator, or
any of the persons identified in clause (4), within the past ten years has been:

(i) convicted of a felony; or

(ii) enjoined or received any adverse administrative order relating to the sale of
securities, land, or campgrounds or based on violations of any consumer protection
statutes. If any of the above has occurred, the name of the person involved, the jurisdiction,
offense, and date of the offense shall be listed;

deleted text begin (6)deleted text end new text begin (5)new text end a legal description of each campground owned or operated in this state by the
membership camping operator which is represented to be available for use by purchasers,
and a map or maps showing the location of all campgrounds, wherever located, which
are owned or operated by the membership camping operator and represented to be
available for use by purchasers, and a statement identifying the existing amenities at each
such campground and the planned amenities represented as to be available for use by
purchasers in the future at each such campground;

deleted text begin (7)deleted text end new text begin (6)new text end the states or jurisdictions in which an application for registration or similar
document has been filed by the membership camping operator pursuant to any statute
similar to this chapter regulating membership camping contracts and any adverse order,
judgment, or decree entered against the operator in connection with membership camping
contracts by any regulatory authority in any jurisdiction or by any court;

deleted text begin (8)deleted text end new text begin (7)new text end a statement of the condition of the title to the campground owned or operated
in this state by the membership camping operator and represented to be available for use
by purchasers, including all encumbrances, deed restrictions, and covenants applicable
thereto with data as to recording, as of a specified date within 30 days prior to the date of
application, by a title opinion of a licensed attorney or by a title insurance policy, naming
the operator or lender as beneficiaries and issued by an insurance company authorized to
do business in this state, or by any evidence of title acceptable to the commissioner;

deleted text begin (9)deleted text end new text begin (8)new text end copies of the instruments by which the membership camping operator's
interest in the campgrounds in this state was acquired;

deleted text begin (10)deleted text end new text begin (9)new text end copies of all recorded or unrecorded instruments, known to the membership
campground operator, that evidence blanket encumbrances that materially adversely
affect the campgrounds in this state;

deleted text begin (11)deleted text end new text begin (10)new text end if there is a blanket encumbrance which materially adversely affects
the campgrounds located in this state, a legal description of the encumbrance, and a
description of the steps taken to protect purchasers, in accordance with section 82A.14,
clause (1), in case of failure to discharge the lien or encumbrance;

deleted text begin (12)deleted text end new text begin (11)new text end evidence showing compliance with the zoning and other applicable
environmental or land use laws, ordinances, and rules affecting the use of the campgrounds
located in this state;

deleted text begin (13)deleted text end new text begin (12)new text end a statement of the existing and planned provisions for the following with
respect to campgrounds located in this state:

(i) purchasers' access to the campgrounds;

(ii) the availability of sewage disposal facilities and other public utilities, including
but not limited to water, electricity, gas, and telephone facilities in the campgrounds;

(iii) the proximity of community fire and police protection;

(iv) a statement of the amenities which will be represented to purchasers as
guaranteed to be constructed or installed, whether the operator will be responsible
for their cost, installation, and maintenance, and an estimated cost of and schedule for
completion of the same; provided that the estimated completion dates need not be more
precise than the year in which completion is estimated to occur, and may be extended for
the period of any delays caused by or deferred due to the occurrence of events such as
acts of God, strikes, and other causes outside the reasonable control of the membership
camping operator; and assurance that such amenities will be completed by filing a bond or
irrevocable letter of credit, depositing funds in an escrow account, or such other provision
as the commissioner may by order allow. The amount of the bond or escrow account shall
be reduced monthly in proportion to the amount paid for completion of the amenities
during such period. The bond, letter of credit, or escrow account shall be issued or held by
a bank or insurance or surety company authorized to do business in this state;

(v) a statement of the amenities to be represented to purchasers as planned for
construction and installation, but not guaranteed, whether the operator will be responsible
for their costs, installation, and maintenance, and an estimated cost of and schedule for
completion of the same; provided that the estimated completion dates need not be more
precise than the year in which completion is estimated to occur and may be extended for
the period of any delays caused by or deferred due to the occurrence of events such as
acts of God, strikes, and other causes outside the reasonable control of the membership
camping operator;

deleted text begin (14)deleted text end new text begin (13)new text end the proposed disclosure statement as required by section 82A.05,
subdivision 1, and the proposed separate disclosure, if applicable, as required by section
82A.05, subdivision 6;

deleted text begin (15)deleted text end new text begin (14)new text end a financial statement of the membership camping operator as of the end of
the membership camping operator's most recent fiscal year, prepared by an independent
public accountant and certified by the camping operator; and, if the fiscal year end of
the membership camping operator is in excess of 180 days prior to the date of filing
the application, a financial statement, which may be unaudited, as of a date within 180
days of the date of application;

deleted text begin (16)deleted text end new text begin (15)new text end a statement of the applicable material permits, other than building permits,
not yet obtained but required to be obtained from various federal, state, and local agencies
to operate the campground in this state, stating which have been applied for. If any
permit has been refused, the reasons for the refusal and the effect the refusal will have on
subsequent development of the campgrounds must be disclosed;

deleted text begin (17)deleted text end new text begin (16)new text end a copy of each type of membership camping contract to be sold in this
state, the purchase price of each type and, if the price varies, the reason for the variance;

deleted text begin (18)deleted text end new text begin (17)new text end the number of membership camping contracts proposed to be sold at
each campground located in this state and a statement describing the method used to
determine the number;

deleted text begin (19)deleted text end new text begin (18)new text end rules of general applicability governing use and occupancy of the
campgrounds; but not including any rules adopted in response to unique local or
immediate needs;

deleted text begin (20)deleted text end new text begin (19)new text end copies of applications for and contracts with any reciprocal program entity
in which the membership camping operator is to participate and represents as available for
use by purchasers;

deleted text begin (21)deleted text end new text begin (20)new text end information concerning purchase or lease costs, rules, forms, and any fees,
other than the initial membership fee and annual dues, which are required for purchaser
usage of in-park trailers, recreational vehicles, tents, or other overnight accommodations,
provided by or through the membership camping operator, for purchasers as an alternative
to using the purchaser's own mobile accommodations; and

deleted text begin (22)deleted text end new text begin (21)new text end any additional information the commissioner reasonably deems appropriate
to administer the provisions of this chapter.

Sec. 32.

Minnesota Statutes 2012, section 82A.05, subdivision 6, is amended to read:

Subd. 6.

Separate disclosure.

If the membership camping operator or that person's
salespeople represents to a prospective purchaser that the operator plans to construct or
install any amenities in the future, but the operator has not guaranteed to do so deleted text begin and has
not provided assurances that the amenities will be installed pursuant to section 82A.04,
subdivision 2, clause (13)(iv)deleted text end , the operator shall furnish a separate disclosure to the
prospective purchaser. The separate disclosure shall be in 10-point bold type and shall
state: NOTICE: PURCHASE THIS MEMBERSHIP CAMPING CONTRACT ONLY
ON THE BASIS OF EXISTING AMENITIES. CONSTRUCTION OF PLANNED
AMENITIES IS NOT GUARANTEED. CONSTRUCTION MAY BE DEFERRED,
REVISED, OR CANCELED FOR A VARIETY OF REASONS. THE PLANNED
AMENITIES FOR THIS CAMPGROUND ARE (Insert list of amenities, including
estimated year of completion of each). IF THE SALESPERSON DESCRIBES A
SIGNIFICANT AMENITY WHICH IS NOT ON THIS LIST, TELEPHONE COLLECT
OR TOLL FREE TO (Insert headquarters telephone number) TO VERIFY THE
OPERATOR'S PLAN FOR SUCH A FACILITY.

The separate disclosure shall be delivered to each person to whom an offer is made
before or concurrently with:

(1) the first written offer other than offer by means of an advertisement; or

(2) any payment pursuant to a sale, whichever is first.

The seller shall obtain a receipt, signed by the person, acknowledging that the person
has received a copy of the separate disclosure required herein prior to the execution by the
purchaser of any membership camping contract. All receipts shall be kept in files which
are in the possession of the membership camping operator or broker subject to inspection
by the commissioner for a period of three years from the date of the receipt.

Sec. 33.

Minnesota Statutes 2013 Supplement, section 82A.06, subdivision 2, is
amended to read:

Subd. 2.

Partial transactional exemptions.

The following transactions are exempt
from the provisions of sections 82A.03; deleted text begin 82A.04;deleted text end 82A.05; 82A.07; deleted text begin 82A.08;deleted text end 82A.11,
deleted text begin subdivisions 2 anddeleted text end new text begin subdivisionnew text end 4; and 82A.14: any sale which is made to a person who is
not then physically present in this state, and any offer which invites an offeree to attend a
sales presentation in another state if:

(1) the offeror has given at least ten days prior written notice to the commissioner
of its intention to offer or sell membership camping contracts to residents of this state
pursuant to this exemption and paid a fee of $50;

(2) the offeror has demonstrated that the sales presentation will be made, and the
sale will be consummated, in a state which specifically regulates the offer and sale of
membership camping contracts;

(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees
who are residents of this state which contains substantially the same or greater disclosure
as is required by section 82A.05; and

(4) the offeror has filed a consent to service of process pursuant to section 82A.22.

Sec. 34.

Minnesota Statutes 2012, section 82A.08, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

During the period a registration is effective, the
membership camping operator shall file an annual report in a format the commissioner
may reasonably prescribe. Every annual report shall be due by the 120th day following
the end of the operator's fiscal year, unless extended in writing by the commissioner
for good cause. The annual report shall:

(1) specify the aggregate number of membership camping contracts sold in this state
pursuant to the registration or any amendment thereof;

(2) specify the number of membership camping contracts and aggregate dollar
amount of all sales of membership camping contracts in this state by the membership
camping operator since the date the registration became effective, or since the last annual
report was filed with the commissioner, whatever date is later;

(3) specify any exemption from registration claimed for any sale described in
clause (2);

deleted text begin (4) list any changes in the information required to be filed under section 82A.04,
subdivision 2, clause (4);
deleted text end

deleted text begin (5)deleted text end new text begin (4)new text end include an audited or unaudited financial statement consisting of a balance
sheet for the membership camping operator's last fiscal year end and an income statement
for the 12 months next preceding the date of the balance sheet, both prepared by an
independent certified public accountant; and

deleted text begin (6)deleted text end new text begin (5)new text end provide such other information as the commissioner may by rule or order
reasonably require to administer the provisions of this chapter, including but not limited
to, audited financial statements.

Sec. 35.

Minnesota Statutes 2012, section 82A.09, subdivision 2, is amended to read:

Subd. 2.

Restrictions.

No person shall publish or cause to be published in this state
any advertisement concerning any membership camping contract which is required to be
registered pursuant to this chapterdeleted text begin , or which is exempt from registration under section
82A.06, subdivision 2,deleted text end after the commissioner has found that the advertisement contains
any statement that is false or misleading, or omits to make any statement necessary in
order to make the statements made, in light of the circumstances under which they were
made, not misleading, and has so notified the person by written order. The order may be
issued without prior notice or hearing. Up to 30 days after the issuance of the order, the
person desiring to use the advertisement may in writing request a hearing on the order.
Upon receipt of a written request, the matter shall be set for hearing to commence within
15 days after the receipt unless the person making the request consents to a later date.
After the hearing, which shall be conducted in accordance with the provisions of chapter
14, the commissioner shall, by written order, either affirm, modify, or vacate the order.

Sec. 36.

Minnesota Statutes 2012, section 82B.195, subdivision 1, is amended to read:

Subdivision 1.

Compliance with uniform standards of professional appraisal
practice.

In addition to an act compelled or prohibited by this chapter, an appraiser
must act according to the standards of professional appraisal practice deleted text begin defined in section
82B.021, subdivision 26deleted text end .

Sec. 37.

Minnesota Statutes 2012, section 82B.195, subdivision 2, is amended to read:

Subd. 2.

Disclosure requirements.

In addition to the requirements of the standards
of professional appraisal practice deleted text begin as defined by section 82B.021, subdivision 31deleted text end , an
appraiser must, prior to performing any appraisal service which requires licensing
pursuant to this chapter, disclose in writing to the person contracting for the appraisal
service the information identified in clause (4). In addition, an appraiser must prepare a
written disclosure providing the information identified in clauses (1) to (13). The written
disclosure must be included as part of the final written appraisal report. As specified in
this subdivision, an appraiser must:

(1) disclose who has employed the appraiser;

(2) disclose who the appraisal is rendered for, if not the person who employed
the appraiser;

(3) disclose the purpose of the appraisal, including an explanation of the difference
between the appraisal being given and an appraisal of fee simple market valuation;

(4) disclose any conflict of interest or situation which might reasonably be perceived
to be a conflict of interest which must include, but not be limited to, the following situations:

(i) whether the appraiser has any ownership interest in the subject property or
contiguous properties;

(ii) whether there is an ownership interest by a spouse, parent, or child of the
appraiser in the property or contiguous properties; and

(iii) whether the appraiser has a continuing business relationship with one of the
parties, for example, any part-time or full-time employment of the appraiser, spouse,
children living at home, or dependent children.

Failure to promptly give notification of a conflict must be considered a violation of
the standards of professional appraisal practice;

(5) disclose that the appraisal is a reevaluation and identify the areas of difference
between the two appraisals and the justification for the changes;

(6) disclose any facts concerning the valuation needed for loan purposes or similar
information that was provided to the appraiser before or during the appraisal;

(7) disclose that the appraiser has not performed appraisals of the type requested or
for the type of property to be appraised as a regular part of the appraiser's business in the
preceding five-year period, provided that if the appraiser asserts qualification by training
or related experience to perform the appraisal, the appraiser must set forth the training or
experience and how it is applicable to the appraisal;

(8) disclose the license classification of the appraiser and the types of appraisals that
the appraiser is authorized to conduct under the licensure;

(9) disclose any lack of experience or training that would affect the ability of the
appraiser to perform the appraisal or could cause rejection of the appraisal by the party
requiring the appraisal;

(10) disclose any appraisal on the same property made by the appraiser in the last
three years;

(11) disclose all pertinent assumptions upon which a valuation based upon income
from the property is derived such as expected occupancy rates, rental rates, construction of
future improvements, roads, or highways;

(12) prior to performing the appraisal, disclose whether the appraiser has previously
been to the property; and

(13) disclose any other fact or circumstance that could bring the reliability of the
appraisal or the impartiality of the appraiser into question.

Sec. 38.

Minnesota Statutes 2012, section 115C.113, is amended to read:

115C.113 ORDERS.

The commissioner of commerce may issue an order requiring a registrant or
applicant for registration to show cause why the registration should not be revoked or
suspended, the registrant censured, the application denied, or other sanction imposed
under section deleted text begin 115C.111 ordeleted text end 115C.112. The order must be calculated to give reasonable
notice of the time and place for hearing on the matter, and must state the reasons for the
entry of the order. The commissioner of commerce may by order summarily suspend a
registration pending final determination of an order to show cause. A hearing on the
merits must be held within 30 days of the issuance of the order of summary suspension.
All hearings must be conducted under chapter 14. After the hearing, the commissioner of
commerce shall enter an order disposing of the matter as the facts require. If the registrant
or applicant for registration fails to appear at a hearing after having been duly notified of
it, the person shall be considered in default, and the proceeding may be determined against
the registrant or applicant for registration upon consideration of the order to show cause,
the allegations of which may be considered to be true.

Sec. 39.

Minnesota Statutes 2012, section 115C.13, is amended to read:

115C.13 REPEALER.

Sections deleted text begin 115C.01,deleted text end 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
deleted text begin 115C.111,deleted text end 115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30,
2017.