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HF 2944

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to commerce; regulating peddlers and 
  1.3             door-to-door solicitors; amending Minnesota Statutes 
  1.4             2002, sections 329.14; 368.01, subdivision 11; 
  1.5             412.221, subdivision 19; proposing coding for new law 
  1.6             in Minnesota Statutes, chapter 329A; repealing 
  1.7             Minnesota Statutes 2002, section 329.17, subdivision 2.
  1.9      Section 1.  Minnesota Statutes 2002, section 329.14, is 
  1.10  amended to read: 
  1.11     329.14 [CERTAIN SALES EXCEPTED.] 
  1.12     The provisions of sections 329.10 to 329.13 and 329.14 to 
  1.13  329.17 shall not apply to sales made to dealers by commercial 
  1.14  travelers or selling agents in the usual course of business, nor 
  1.15  to bona fide sales of goods, wares, and merchandise by sample, 
  1.16  catalog, or brochure, for future delivery, or to hawkers on the 
  1.17  street solicitors, or to peddlers from vehicles, baskets, or 
  1.18  packs carried on their backs regulated under chapter 329A, or to 
  1.19  sheriffs, constables, or other public officers selling goods, 
  1.20  wares, and merchandise according to law; nor to bona fide 
  1.21  assignees or receivers appointed in this state selling goods, 
  1.22  wares, and merchandise for the benefit of creditors, nor to 
  1.23  persons who may sell or peddle the products of the farm or 
  1.24  garden occupied and cultivated by themselves, nor to sales made 
  1.25  by a seller at a residential premises pursuant to an invitation 
  1.26  issued by the owner or legal occupant of the premises. 
  2.1      Sec. 2.  [329A.25] [DEFINITIONS.] 
  2.2      Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
  2.3   the definitions in this section have the meanings given. 
  2.4      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  2.5   commissioner of commerce. 
  2.6      Subd. 3.  [PEDDLER.] "Peddler" means a person who goes from 
  2.7   house to house, door to door, business to business, street to 
  2.8   street, or any other type of place to place, for the purpose of 
  2.9   offering for sale, displaying or exposing for sale, selling or 
  2.10  attempting to sell, and delivering immediately upon sale, the 
  2.11  goods, wares, products, merchandise, or other personal property 
  2.12  that the person is carrying or otherwise transporting. 
  2.13     Subd. 4.  [SOLICITOR.] "Solicitor" means a person who goes 
  2.14  from house to house, door to door, business to business, street 
  2.15  to street, or any other type of place to place, for the purpose 
  2.16  of obtaining or attempting to obtain orders for goods, wares, 
  2.17  products, merchandise, or other personal property or services 
  2.18  for which delivery or performance will occur at a later time.  
  2.19     Sec. 3.  [329A.30] [REGISTRATION; EXEMPTIONS.] 
  2.20     Subdivision 1.  [STATE REGISTRATION REQUIRED.] No person 
  2.21  may conduct business as a peddler or solicitor anywhere in the 
  2.22  state without first having registered according to this chapter, 
  2.23  unless the person is exempt under this chapter.  Professional 
  2.24  fund-raisers working on behalf of an otherwise exempt person are 
  2.25  not exempt from the registration requirements of this chapter.  
  2.26     Subd. 2.  [PREEMPTION.] This chapter preempts and 
  2.27  supersedes all county, municipal, and local governmental 
  2.28  regulation of the persons governed by this chapter.  A person 
  2.29  who registers pursuant to this chapter is not required to 
  2.30  register with any political subdivision of the state.  A 
  2.31  political subdivision of the state may not impose a licensing, 
  2.32  permit, or registration requirement upon or otherwise regulate a 
  2.33  person engaged in peddling or soliciting or an entity whose 
  2.34  goods, wares, products, merchandise, or other personal property 
  2.35  or services the peddler or solicitor is selling. 
  2.36     Subd. 3.  [APPLICATION FOR REGISTRATION.] The application 
  3.1   for registration to conduct business as a peddler or solicitor 
  3.2   must be made at least seven days before the applicant wishes to 
  3.3   begin conducting business.  The application must be made on a 
  3.4   form approved by the commissioner and be available from the 
  3.5   commissioner by e-mail, for download, or by facsimile on the day 
  3.6   the request is made.  All applications must include the 
  3.7   following: 
  3.8      (1) the applicant's full legal name; 
  3.9      (2) the applicant's permanent residence address; 
  3.10     (3) the business name, address, and telephone number of the 
  3.11  applicant; 
  3.12     (4) the type of business; and 
  3.13     (5) a statement of whether the applicant has been convicted 
  3.14  within the past two years from the date of application for 
  3.15  violation of a federal or state law involving burglary, theft, 
  3.16  or fraud. 
  3.17     Subd. 4.  [FEE.] All applications for registration under 
  3.18  this chapter must be accompanied by a fee determined by the 
  3.19  commissioner.  Section 16A.1283 does not apply to the initial 
  3.20  setting of the fee by the commissioner, but does apply to 
  3.21  subsequent increases in the fee. 
  3.22     Subd. 5.  [PROCEDURE.] (a) Upon receipt of the completed 
  3.23  application and payment of the fee which may be submitted via 
  3.24  e-mail or United States mail, or in person, the commissioner, 
  3.25  within two days, shall determine if the application is 
  3.26  complete.  An application is complete if all required 
  3.27  information is provided.  If the commissioner determines that 
  3.28  the application is incomplete, the commissioner must inform the 
  3.29  applicant of the required necessary information that is 
  3.30  missing.  If the application is complete, the commissioner may 
  3.31  order an investigation, including background checks, necessary 
  3.32  to verify the information provided with the application.  Within 
  3.33  seven days of receiving a complete application, the commissioner 
  3.34  shall issue a certificate of registration to the applicant 
  3.35  unless there exist grounds for denying the registration under 
  3.36  this chapter, in which case the commissioner may deny the 
  4.1   registration. 
  4.2      (b) If the commissioner denies the registration, the 
  4.3   applicant and entity must be notified in writing of the 
  4.4   decision, the reason for denial, and the applicant's right to a 
  4.5   hearing.  If a hearing is requested or ordered, the 
  4.6   commissioner, after notice and hearing according to chapter 14, 
  4.7   shall affirm, modify, or vacate the order denying the 
  4.8   registration. 
  4.9      Subd. 6.  [DURATION.] A registration granted under this 
  4.10  chapter is valid for 12 months from the date of registration. 
  4.11     Subd. 7.  [WEB SITE.] All current and approved 
  4.12  registrations must be posted on the Web site of the Department 
  4.13  of Commerce. 
  4.14     Subd. 8.  [REGISTRATION EXEMPTIONS.] The following are 
  4.15  exempt from registration under this chapter: 
  4.16     (1) a person selling or attempting to sell, or taking or 
  4.17  attempting to take orders for, products grown, produced, 
  4.18  cultivated, or raised on a farm; 
  4.19     (2) a person going from house to house, door to door, 
  4.20  business to business, street to street, or any other type of 
  4.21  place to place, when the activity is for the purpose of 
  4.22  exercising that person's state or federal constitutional rights 
  4.23  such as the right to freedom of speech, press, or religion; 
  4.24     (3) a school child working on behalf of a public or private 
  4.25  school for the purpose of raising funds for school-sponsored 
  4.26  activities; 
  4.27     (4) a person selling or attempting to sell at wholesale any 
  4.28  goods, wares, products, merchandise, or other personal property 
  4.29  to a retailer of the items being sold by the wholesaler; 
  4.30     (5) a person who makes initial contacts with other people 
  4.31  for the purpose of establishing or trying to establish a regular 
  4.32  customer delivery route for the delivery of perishable food and 
  4.33  dairy products, such as baked goods and milk; 
  4.34     (6) a person making deliveries of perishable food and dairy 
  4.35  products to the customers on the person's established regular 
  4.36  delivery route; 
  5.1      (7) a person conducting the type of sales commonly known as 
  5.2   garage sales, rummage sales, or estate sales; 
  5.3      (8) a person participating in an organized multiperson 
  5.4   bazaar or flea market; 
  5.5      (9) a person conducting an auction as a properly authorized 
  5.6   auctioneer; 
  5.7      (10) an officer of the court conducting a court-ordered 
  5.8   sale; and 
  5.9      (11) veterans described under section 197.59. 
  5.10     Sec. 4.  [329A.35] [REGISTRATION INELIGIBILITY.] 
  5.11     The following are grounds for denying registration under 
  5.12  this chapter: 
  5.13     (1) making a material misrepresentation on the application 
  5.14  or failing to pay the required fee; and 
  5.15     (2) the criminal conviction of the applicant within the two 
  5.16  years prior to the date of application for violation of federal 
  5.17  or state law involving burglary, theft, or fraud. 
  5.18     Sec. 5.  [329A.40] [SUSPENSION AND REVOCATION.] 
  5.19     Subdivision 1.  [GENERALLY.] A registration granted under 
  5.20  this chapter may be suspended or revoked after a hearing by the 
  5.21  commissioner for any of the following: 
  5.22     (1) a material misrepresentation made on the application 
  5.23  form; 
  5.24     (2) a material misrepresentation made during the course of 
  5.25  registered activity; or 
  5.26     (3) conviction of any offense listed in section 329A.35, 
  5.27  clause (2). 
  5.28     Subd. 2.  [NOTICE.] Prior to revoking or suspending a 
  5.29  registration issued under this chapter, the commissioner shall 
  5.30  provide written notice of the alleged violations to the 
  5.31  registrant and the business for whom the peddler or solicitor 
  5.32  sells, the reason for the suspension or revocation, and notice 
  5.33  of the applicant's right to a hearing. 
  5.34     Subd. 3.  [HEARING.] Upon receiving the notice provided in 
  5.35  subdivision 2, the registrant has the right to request a hearing 
  5.36  according to chapter 14.  If a hearing is requested or ordered, 
  6.1   the commissioner, after notice to the applicant, shall conduct a 
  6.2   hearing according to chapter 14 and shall affirm, modify, or 
  6.3   vacate the order recommending suspension or revocation of the 
  6.4   registration. 
  6.5      If no request for a hearing is received by the commissioner 
  6.6   within ten days following the service of the notice, the 
  6.7   commissioner may proceed with the suspension or revocation.  For 
  6.8   the purpose of mailed notices, service is considered complete as 
  6.9   of the date the notice is placed in the mail.  If a hearing is 
  6.10  requested within the stated time frame, a hearing must be 
  6.11  scheduled within 20 days from the date of the request.  Within 
  6.12  three days of the hearing, the commissioner shall notify the 
  6.13  registrant of the commissioner's decision. 
  6.14     Subd. 4.  [SUSPENSION.] A registrant who is determined to 
  6.15  have violated subdivision 1, clause (1) or (2), may be suspended 
  6.16  by the commissioner for not more than 30 days from the date of 
  6.17  final determination for the first violation and for not more 
  6.18  than 60 days from the date of final determination for the second 
  6.19  violation.  Upon completion of the suspension, the commissioner 
  6.20  shall allow the registrant to reregister if the registrant is 
  6.21  not ineligible under section 329A.35. 
  6.22     Subd. 5.  [REVOCATIONS.] A registrant who is determined to 
  6.23  have violated subdivision 1, clause (3), may have the 
  6.24  registrant's registration revoked by the commissioner for a 
  6.25  period of one year from the date of final determination.  After 
  6.26  expiration of the one-year period, the registrant may reapply.  
  6.27  The applicant is not ineligible to apply by reason of the prior 
  6.28  revocation. 
  6.29     Subd. 6.  [APPEALS.] A person whose registration is 
  6.30  suspended or revoked under this section has the right to file a 
  6.31  petition in court for review pursuant to chapter 14. 
  6.32     Sec. 6.  [329A.45] [TRANSFERABILITY.] 
  6.33     No registration issued under this chapter may be 
  6.34  transferred to a person other than the person to whom the 
  6.35  registration was issued. 
  6.36     Sec. 7.  [329A.50] [PROHIBITED ACTIVITIES.] 
  7.1      No peddler or solicitor may conduct business in any of the 
  7.2   following manners: 
  7.3      (1) calling attention to business or items to be sold by 
  7.4   blowing a horn or whistle, ringing a bell, crying out, or any 
  7.5   other noise, so as to be unreasonably audible within an enclosed 
  7.6   structure; 
  7.7      (2) obstructing the free flow of either vehicular or 
  7.8   pedestrian traffic on a street, alley, sidewalk, or other public 
  7.9   right-of-way; 
  7.10     (3) conducting business in a way that creates a threat to 
  7.11  the health, safety, and welfare of an individual or the general 
  7.12  public; 
  7.13     (4) conducting business before 9:00 a.m. or after 9:00 
  7.14  p.m.; 
  7.15     (5) failing to provide proof of registration when 
  7.16  requested, or using the registration of another person; 
  7.17     (6) making a material misrepresentation about the product 
  7.18  or services being sold or claiming to have the endorsement of 
  7.19  the commissioner solely based on the commissioner having issued 
  7.20  a certificate of registration to that person; or 
  7.21     (7) remaining on the property of another after being 
  7.22  requested to leave, or otherwise conducting business in a manner 
  7.23  a reasonable person would find obscene, threatening, 
  7.24  intimidating, or abusive. 
  7.25     Sec. 8.  [329A.55] [EXCLUSION BY PLACARD.] 
  7.26     No peddler or solicitor, unless invited to do so by the 
  7.27  property owner or tenant, may enter the property of another for 
  7.28  the purpose of conducting business as a peddler or solicitor 
  7.29  when the property is marked with a sign or placard at least four 
  7.30  inches long and four inches wide with print of at least 48 point 
  7.31  in size stating "No Peddlers or Solicitors," "Peddlers and 
  7.32  Solicitors Prohibited," or other comparable statement.  No 
  7.33  person other than the property owner or tenant may remove, 
  7.34  deface, or otherwise tamper with a sign or placard under this 
  7.35  section. 
  7.36     Sec. 9.  Minnesota Statutes 2002, section 368.01, 
  8.1   subdivision 11, is amended to read: 
  8.2      Subd. 11.  [TRANSIENT COMMERCE.] The town board may by 
  8.3   ordinance restrain or license and regulate auctioneers, 
  8.4   transient merchants and dealers, hawkers, peddlers, solicitors, 
  8.5   and canvassers.  
  8.6      Sec. 10.  Minnesota Statutes 2002, section 412.221, 
  8.7   subdivision 19, is amended to read: 
  8.8      Subd. 19.  [TRANSIENT COMMERCE.] The council shall have 
  8.9   power by ordinance to restrain or license and regulate 
  8.10  auctioneers, transient merchants and dealers, hawkers, peddlers, 
  8.11  solicitors, and canvassers.  
  8.12     Sec. 11.  [REVISOR'S INSTRUCTION.] 
  8.13     The revisor of statutes shall recodify Minnesota Statutes, 
  8.14  section 329.095, as section 329A.60. 
  8.15     Sec. 12.  [REPEALER.] 
  8.16     Minnesota Statutes 2002, section 329.17, subdivision 2, is 
  8.17  repealed.