2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to commerce; regulating certain disclosures; 1.3 authorizing insurance against vicarious liability for 1.4 certain damages; specifying the license term and fees 1.5 of a managing general agent; regulating securities 1.6 broker-dealers and investment advisers; authorizing 1.7 the commissioner to withdraw certain inactive 1.8 registration applications; extending a real estate 1.9 continuing education pilot project; regulating the 1.10 contractor recovery fund; making collection agencies 1.11 responsible for the acts of collectors; providing 1.12 standards of conduct for notarial acts; regulating 1.13 unclaimed property; amending Minnesota Statutes 1998, 1.14 sections 45.027, subdivision 7a; 60H.03, by adding a 1.15 subdivision; 60K.03, subdivision 4; 80A.04, 1.16 subdivisions 2 and 3; 80A.07, subdivision 1; 80A.10, 1.17 subdivision 2; 80C.05, subdivision 4; 80C.07; 82.22, 1.18 subdivision 13; 82A.04, subdivision 4, and by adding a 1.19 subdivision; 82B.14; 83.23, by adding a subdivision; 1.20 308A.711, subdivision 1; 326.975, subdivision 1; and 1.21 345.515; Minnesota Statutes 1999 Supplement, sections 1.22 60A.06, subdivision 1; and 80A.15, subdivision 2; 1.23 proposing coding for new law in Minnesota Statutes, 1.24 chapters 332; and 359. 1.25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.26 Section 1. Minnesota Statutes 1998, section 45.027, 1.27 subdivision 7a, is amended to read: 1.28 Subd. 7a. [AUTHORIZED DISCLOSURES OF INFORMATION AND 1.29 DATA.] (a) The commissioner may release and disclose any active 1.30 or inactive investigative information and data on licensees to 1.31 any national securities exchange or national securities 1.32 association registered under the Securities Exchange Act of 1934 1.33 when necessary for the requesting agency in initiating, 1.34 furthering, or completing an investigation. 1.35 (b) The commissioner may release any active or inactive 2.1 investigative data relating to the conduct of the business of 2.2 insurance to the Office of the Comptroller of the Currency or 2.3 the Office of Thrift Supervision in order to facilitate the 2.4 initiation, furtherance, or completion of the investigation. 2.5 Sec. 2. Minnesota Statutes 1999 Supplement, section 2.6 60A.06, subdivision 1, is amended to read: 2.7 Subdivision 1. [STATUTORY LINES.] Insurance corporations 2.8 may be authorized to transact in any state or territory in the 2.9 United States, in the Dominion of Canada, and in foreign 2.10 countries, when specified in their charters or certificates of 2.11 incorporation, either as originally granted or as thereafter 2.12 amended, any of the following kinds of business, upon the stock 2.13 plan, or upon the mutual plan when the formation of such mutual 2.14 companies is otherwise authorized by law; and business trusts as 2.15 authorized by law of this state shall only be authorized to 2.16 transact in this state the following kind of business 2.17 hereinafter specified in clause (7) hereof when specified in 2.18 their "declaration of trust": 2.19 (1) To insure against loss or damage to property on land 2.20 and against loss of rents and rental values, leaseholds of 2.21 buildings, use and occupancy and direct or consequential loss or 2.22 damage caused by fire, smoke or smudge, water or other fluid or 2.23 substance, lightning, windstorm, tornado, cyclone, earthquake, 2.24 collapse and slippage, rain, hail, frost, snow, freeze, change 2.25 of temperature, weather or climatic conditions, excess or 2.26 deficiency of moisture, floods, the rising of waters, oceans, 2.27 lakes, rivers or their tributaries, bombardment, invasion, 2.28 insurrection, riot, civil war or commotion, military or usurped 2.29 power, electrical power interruption or electrical breakdown 2.30 from any cause, railroad equipment, motor vehicles or aircraft, 2.31 accidental injury to sprinklers, pumps, conduits or containers 2.32 or other apparatus erected for extinguishing fires, explosion, 2.33 whether fire ensues or not, except explosions on risks specified 2.34 in clause (3); provided, however, that there may be insured 2.35 hereunder the following: (a) explosion of any kind originating 2.36 outside the insured building or outside of the building 3.1 containing the property insured, (b) explosion of pressure 3.2 vessels which do not contain steam or which are not operated 3.3 with steam coils or steam jackets; and (c) risks under home 3.4 owners multiple peril policies; 3.5 (2)(a) To insure vessels, freight, goods, wares, 3.6 merchandise, specie, bullion, jewels, profits, commissions, bank 3.7 notes, bills of exchange, and other evidences of debt, bottomry 3.8 and respondentia interest, and every insurance appertaining to 3.9 or connected with risks of transportation and navigation on and 3.10 under water, on land or in the air; 3.11 (b) To insure all personal property floater risks; 3.12 (3) To insure against any loss from either direct or 3.13 indirect damage to any property or interest of the assured or of 3.14 another, resulting from the explosion of or injury to (a) any 3.15 boiler, heater or other fired pressure vessel; (b) any unfired 3.16 pressure vessel; (c) pipes or containers connected with any of 3.17 said boilers or vessels; (d) any engine, turbine, compressor, 3.18 pump or wheel; (e) any apparatus generating, transmitting or 3.19 using electricity; (f) any other machinery or apparatus 3.20 connected with or operated by any of the previously named 3.21 boilers, vessels or machines; and including the incidental power 3.22 to make inspections of and to issue certificates of inspection 3.23 upon, any such boilers, apparatus, and machinery, whether 3.24 insured or otherwise; 3.25 (4) To make contracts of life and endowment insurance, to 3.26 grant, purchase, or dispose of annuities or endowments of any 3.27 kind; and, in such contracts, or in contracts supplemental 3.28 thereto to provide for additional benefits in event of death of 3.29 the insured by accidental means, total permanent disability of 3.30 the insured, or specific dismemberment or disablement suffered 3.31 by the insured, or acceleration of life or endowment or annuity 3.32 benefits in advance of the time they would otherwise be payable; 3.33 (5)(a) To insure against loss or damage by the sickness, 3.34 bodily injury or death by accident of the assured or dependents, 3.35 or those for whom the assured has assumed a portion of the 3.36 liability for the loss or damage, including liability for 4.1 payment of medical care costs or for provision of medical care; 4.2 (b) To insure against the legal liability, whether imposed 4.3 by common law or by statute or assumed by contract, of employers 4.4 for the death or disablement of, or injury to, employees; 4.5 (6) To guarantee the fidelity of persons in fiduciary 4.6 positions, public or private, or to act as surety on official 4.7 and other bonds, and for the performance of official or other 4.8 obligations; 4.9 (7) To insure owners and others interested in real estate 4.10 against loss or damage, by reason of defective titles, 4.11 encumbrances, or otherwise; 4.12 (8) To insure against loss or damage by breakage of glass, 4.13 located or in transit; 4.14 (9)(a) To insure against loss by burglary, theft, or 4.15 forgery; 4.16 (b) To insure against loss of or damage to moneys, coins, 4.17 bullion, securities, notes, drafts, acceptance or any other 4.18 valuable paper or document, resulting from any cause, except 4.19 while in the custody or possession of and being transported by 4.20 any carrier for hire or in the mail; 4.21 (c) To insure individuals by means of an all risk type of 4.22 policy commonly known as the "personal property floater" against 4.23 any kind and all kinds of loss of or damage to, or loss of use 4.24 of, any personal property other than merchandise; 4.25 (d) To insure against loss or damage by water or other 4.26 fluid or substance; 4.27 (10) To insure against loss from death of domestic animals 4.28 and to furnish veterinary service; 4.29 (11) To guarantee merchants and those engaged in business, 4.30 and giving credit, from loss by reason of giving credit to those 4.31 dealing with them; this shall be known as credit insurance; 4.32 (12) To insure against loss or damage to automobiles or 4.33 other vehicles or aircraft and their contents, by collision, 4.34 fire, burglary, or theft, and other perils of operation, and 4.35 against liability for damage to persons, or property of others, 4.36 by collision with such vehicles or aircraft, and to insure 5.1 against any loss or hazard incident to the ownership, operation, 5.2 or use of motor or other vehicles or aircraft; 5.3 (13) To insure against liability for loss or damage to the 5.4 property or person of another caused by the insured or by those 5.5 for whom the insured is responsible, including insurance of 5.6 medical, hospital, surgical, funeral or other related expense of 5.7 the insured or other person injured, irrespective of legal 5.8 liability of the insured, when issued with or supplemental to 5.9 policies of liability insurance; 5.10 (14) To insure against loss of or damage to any property of 5.11 the insured, resulting from the ownership, maintenance or use of 5.12 elevators, except loss or damage by fire; 5.13 (15) To insure against attorneys fees, court costs, witness 5.14 fees and incidental expenses incurred in connection with the use 5.15 of the professional services of attorneys at law
.; 5.16 (16) To insure against vicarious liability for punitive or 5.17 exemplary damages. 5.18 Sec. 3. Minnesota Statutes 1998, section 60H.03, is 5.19 amended by adding a subdivision to read: 5.20 Subd. 4. [TERM AND FEES.] The term of a managing general 5.21 agent license issued under this section and the license fees 5.22 imposed are the same as those applicable to a licensed insurance 5.23 agent under chapter 60K. 5.24 Sec. 4. Minnesota Statutes 1998, section 60K.03, 5.25 subdivision 4, is amended to read: 5.26 Subd. 4. [TERM.] All licenses issued pursuant to this 5.27 section remain in force until voluntarily terminated by the 5.28 licensee, not renewed as prescribed in section 60K.06, or until 5.29 suspended or revoked by the commissioner. A voluntary 5.30 termination occurs when the license is surrendered to the 5.31 commissioner with the request that it be terminated or when the 5.32 licensee dies, or when the licensee is dissolved or its 5.33 existence is terminated. In the case of a nonresident license, 5.34 a voluntary termination also occurs upon the happening of the 5.35 event described in subdivision 3, paragraph (c). 5.36 Every licensed agent shall notify the commissioner within 6.1 30ten days of a change of name, address, or information 6.2 contained in the application. 6.3 Sec. 5. Minnesota Statutes 1998, section 80A.04, 6.4 subdivision 2, is amended to read: 6.5 Subd. 2. It is unlawful for any broker-dealer or issuer to 6.6 employ an agent as a representative in this state unless the 6.7 agent is licensed. The licensing of an agent is not effective 6.8 during any period when the agent is not associated with a 6.9 specified broker-dealer licensed under this chapter or a 6.10 specified issuer. No agent shall at any time represent more 6.11 than one broker-dealer or issuer, except that where 6.12 broker-dealers affiliated by direct common control are licensed 6.13 under this chapter, an agent may represent the broker-dealer. 6.14 When an agent begins or terminates employment with a 6.15 broker-dealer or issuer, or begins or terminates those 6.16 activities which make that person an agent, the agent as well as 6.17 the broker-dealer or issuer shall promptly notify the 6.18 commissioner or the commissioner's designated representative. 6.19 A broker-dealer or investment adviser is affiliated by 6.20 direct common control when 80 percent or more of the equity of 6.21 each broker-dealer or investment adviser is beneficially owned 6.22 by the same person or group of persons. 6.23 Sec. 6. Minnesota Statutes 1998, section 80A.04, 6.24 subdivision 3, is amended to read: 6.25 Subd. 3. It is unlawful for any person to transact 6.26 business in this state as an investment adviser unless that 6.27 person is so licensed or licensed as a broker-dealer under this6.28 chapteras described in section 80A.14, subdivision 9, clause 6.29 (3), or unless: (1) that person's only clients in this state 6.30 are investment companies as defined in the Investment Company 6.31 Act of 1940, other investment advisers, broker-dealers, banks, 6.32 trust companies, savings associations, federal covered advisers 6.33 insurance companies, corporations with a class of equity 6.34 securities registered under section 12(b) or 12(g) of the 6.35 Securities Exchange Act of 1934, small business investment 6.36 companies, and government agencies or instrumentalities, whether 7.1 acting for themselves or as trustees with investment control, or 7.2 other institutional buyers; or (2) that person has no place of 7.3 business in this state and during the preceding 12-month period 7.4 has had fewer than six clients who are residents of this state. 7.5 Sec. 7. Minnesota Statutes 1998, section 80A.07, 7.6 subdivision 1, is amended to read: 7.7 Subdivision 1. [GENERAL GROUNDS.] The commissioner may by 7.8 order deny, suspend, or revoke any license or may censure the 7.9 licensee, if the commissioner finds (a) that the order is in the 7.10 public interest and (b) that the applicant or licensee or, in 7.11 the case of a broker-dealer or investment adviser, any partner, 7.12 officer, or director, any person occupying a similar status or 7.13 performing similar functions, or any person directly or 7.14 indirectly controlling the broker-dealer or investment adviser: 7.15 (1) has filed an application for license which as of its 7.16 effective date, or as of any date after filing in the case of an 7.17 order denying effectiveness, was incomplete in any material 7.18 respect or contained any statement which was, in light of the 7.19 circumstances under which it was made, false or misleading with 7.20 respect to any material fact; 7.21 (2) has willfully violated or failed to comply with any 7.22 provision of this chapter or a predecessor law or any provision 7.23 of the Securities Act of 1933, the Securities Exchange Act of 7.24 1934, the Investment Advisers Act of 1940, the Investment 7.25 Company Act of 1940, the Commodity Exchange Act, or any rule or 7.26 order under any of these statutes, of which that person has 7.27 notice and is subject; 7.28 (3) has been convicted, within the past ten years, of any 7.29 misdemeanor involving a security or any aspect of the securities 7.30 business, or any felony; 7.31 (4) is permanently or temporarily enjoined by any court of 7.32 competent jurisdiction from engaging in or continuing any 7.33 conduct or practice involving any aspect of the securities 7.34 business; 7.35 (5) is the subject of an order of the commissioner denying, 7.36 suspending, or revoking a license as a broker-dealer, agent or 8.1 investment adviser; 8.2 (6) is the subject of an order entered within the past five 8.3 years by the securities administrator of any other state or by 8.4 the securities and exchange commission, or any national 8.5 securities exchange or national securities association 8.6 registered under the Securities Exchange Act of 1934, denying or 8.7 revoking registration or license as a broker-dealer, agent, or 8.8 investment adviser, or is the subject of an order of the 8.9 securities and exchange commission or any national securities 8.10 exchange or national securities association registered under the 8.11 Securities Exchange Act of 1934, suspending, barring, or 8.12 expelling that person from a national securities exchange or 8.13 association registered under the Securities Exchange Act of 8.14 1934, or is the subject of a United States post office fraud 8.15 order. The commissioner may not institute a revocation or 8.16 suspension proceeding under this clause more than one year from 8.17 the date of the order relied on, and may not enter an order 8.18 under this clause on the basis of an order under another state 8.19 law unless the order was based on facts which would currently 8.20 constitute a ground for an order under this section; 8.21 (7) has engaged in dishonest or fraudulent practices in the 8.22 securities business; 8.23 (8) has failed to maintain the minimum net capital or to 8.24 comply with the limitation on aggregate indebtedness which the 8.25 commissioner by rule prescribes; 8.26 (9) is not qualified on the basis of such factors as 8.27 training, experience, and knowledge of the securities business; 8.28 (10) has failed reasonably to supervise agents, investment 8.29 adviser representatives, or employees to assure their compliance 8.30 with this chapter; 8.31 (11) has failed to pay the proper filing fee, but the 8.32 commissioner shall vacate the order when the deficiency has been 8.33 corrected; 8.34 (12) has offered or sold securities in this state through 8.35 any unlicensed agent; 8.36 (13) has made any material misrepresentation to the 9.1 commissioner, or upon request reasonably made by the 9.2 commissioner, has withheld or concealed information from, or 9.3 refused to furnish information to, the commissioner; 9.4 (14) has failed to reasonably supervise agents, investment 9.5 adviser representatives, or employees if that person has assumed 9.6 or has been designated to carry out the supervisory procedures 9.7 of the broker-dealer or investment adviser; or 9.8 (15) has failed, within 20 business days after receiving 9.9 written instructions from a customer, to do any of the following: 9.10 (a) transfer or deliver securities that have been 9.11 purchased; 9.12 (b) transfer or deliver any free credit balances reflecting 9.13 completed transactions; or 9.14 (c) transfer or deliver a customer's account securities 9.15 positions and balances to another broker-dealer. 9.16 This clause shall not serve as a basis for denial, suspension, 9.17 or revocation of a broker-dealer's or agent's license if: (i) 9.18 the transfer or delivery is between broker-dealers and meets the 9.19 rules and requirements established by the New York Stock 9.20 Exchange with regard to the transfer or delivery; or (ii) the 9.21 delivery of securities to a customer cannot be accomplished 9.22 within 20 business days, and the broker-dealer or agent has 9.23 notified the customer in writing of the inability to deliver the 9.24 securities and the reasons for the nondelivery within 20 9.25 business days of receiving the customer's written instructions. 9.26 Sec. 8. Minnesota Statutes 1998, section 80A.10, 9.27 subdivision 2, is amended to read: 9.28 Subd. 2. A registration statement under this section shall 9.29 contain the following information and be accompanied by the 9.30 following documents in addition to the information specified in 9.31 section 80A.12 and the consent to service of process required by 9.32 section 80A.27, subdivision 7; 9.33 (a) Two copiesOne copy of the latest form of prospectus 9.34 filed under the Securities Act of 1933; 9.35 (b) If the commissioner by rule or otherwise requires, a 9.36 copy of the articles of incorporation and bylaws (or their 10.1 substantial equivalent) currently in effect, a copy of any 10.2 agreements with or among underwriters, a copy of any indenture 10.3 or other instrument governing the issuance of the security to be 10.4 registered, and a specimen or copy of the security; 10.5 (c) If the commissioner requests, any other information, or 10.6 copies of any other documents, filed under the Securities Act of 10.7 1933; and 10.8 (d) An undertaking to forward all amendments to the federal 10.9 prospectus, other than an amendment which merely delays the 10.10 effective date of the registration statement, not later than the 10.11 first business day after the day they are forwarded to or filed 10.12 with the securities and exchange commission or such longer 10.13 period as the commissioner permits. 10.14 Sec. 9. Minnesota Statutes 1999 Supplement, section 10.15 80A.15, subdivision 2, is amended to read: 10.16 Subd. 2. The following transactions are exempted from 10.17 sections 80A.08 and 80A.16: 10.18 (a) Any sales, whether or not effected through a 10.19 broker-dealer, provided that: 10.20 (1) no person shall make more than ten sales of 10.21 securities in Minnesota of the same issuer pursuant to this 10.22 exemption, exclusive of sales according to clause (2), during 10.23 any period of 12 consecutive months; provided further, that in 10.24 the case of sales by an issuer, except sales of securities 10.25 registered under the Securities Act of 1933 or exempted by 10.26 section 3(b) of that act, (i) the seller reasonably believes 10.27 that all buyers are purchasing for investment, and (ii) the 10.28 securities are not advertised for sale to the general public in 10.29 newspapers or other publications of general circulation or 10.30 otherwise, or by radio, television, electronic means or similar 10.31 communications media, or through a program of general 10.32 solicitation by means of mail or telephone; andor 10.33 (2) no issuer shall make more than 25 sales of its 10.34 securities in Minnesota according to this exemption, exclusive 10.35 of sales pursuant to clause (1), during any period of 12 10.36 consecutive months; provided further, that the issuer meets the 11.1 conditions in clause (1) and, in addition meets the following 11.2 additional conditions: (i) files with the commissioner, ten 11.3 days before a sale according to this clause, a statement of 11.4 issuer on a form prescribed by the commissioner; and (ii) no 11.5 commission or other remuneration is paid or given directly or 11.6 indirectly for soliciting any prospective buyers in this state 11.7 in connection with a sale according to this clause except 11.8 reasonable and customary commissions paid by the issuer to a 11.9 broker-dealer licensed under this chapter. 11.10 (b) Any nonissuer distribution of an outstanding security 11.11 if (1) either Moody's, Fitch's, or Standard & Poor's Securities 11.12 Manuals, or other recognized manuals approved by the 11.13 commissioner contains the names of the issuer's officers and 11.14 directors, a balance sheet of the issuer as of a date not more 11.15 than 18 months prior to the date of the sale, and a profit and 11.16 loss statement for the fiscal year preceding the date of the 11.17 balance sheet, and (2) the issuer or its predecessor has been in 11.18 active, continuous business operation for the five-year period 11.19 next preceding the date of sale, and (3) if the security has a 11.20 fixed maturity or fixed interest or dividend provision, the 11.21 issuer has not, within the three preceding fiscal years, 11.22 defaulted in payment of principal, interest, or dividends on the 11.23 securities. 11.24 (c) The execution of any orders by a licensed broker-dealer 11.25 for the purchase or sale of any security, pursuant to an 11.26 unsolicited offer to purchase or sell; provided that the 11.27 broker-dealer acts as agent for the purchaser or seller, and has 11.28 no direct material interest in the sale or distribution of the 11.29 security, receives no commission, profit, or other compensation 11.30 from any source other than the purchaser and seller and delivers 11.31 to the purchaser and seller written confirmation of the 11.32 transaction which clearly itemizes the commission, or other 11.33 compensation. 11.34 (d) Any nonissuer sale of notes or bonds secured by a 11.35 mortgage lien if the entire mortgage, together with all notes or 11.36 bonds secured thereby, is sold to a single purchaser at a single 12.1 sale. 12.2 (e) Any judicial sale, exchange, or issuance of securities 12.3 made pursuant to an order of a court of competent jurisdiction. 12.4 (f) The sale, by a pledge holder, of a security pledged in 12.5 good faith as collateral for a bona fide debt. 12.6 (g) Any offer or sale to a bank, savings institution, trust 12.7 company, insurance company, investment company as defined in the 12.8 Investment Company Act of 1940, or other financial institution 12.9 or institutional buyer, or to a broker-dealer, whether the 12.10 purchaser is acting for itself or in some fiduciary capacity. 12.11 (h) An offer or sale of securities by an issuer made in 12.12 reliance on the exemptions provided by Rule 505 or 506 of 12.13 Regulation D promulgated by the Securities and Exchange 12.14 Commission, Code of Federal Regulations, title 17, sections 12.15 230.501 to 230.508, subject to the conditions and definitions 12.16 provided by Rules 501 to 503 of Regulation D, if the offer and 12.17 sale also satisfies the conditions and limitations in clauses 12.18 (1) to (10). 12.19 (1) The exemption under this paragraph is not available for 12.20 the securities of an issuer if any of the persons described in 12.21 Rule 252(c) to (f) of Regulation A promulgated by the Securities 12.22 and Exchange Commission, Code of Federal Regulations, title 17, 12.23 sections 230.251 to 230.263: 12.24 (i) has filed a registration statement that is the subject 12.25 of a currently effective order entered against the issuer, its 12.26 officers, directors, general partners, controlling persons, or 12.27 affiliates, according to any state's law within five years 12.28 before the filing of the notice required under clause (5), 12.29 denying effectiveness to, or suspending or revoking the 12.30 effectiveness of, the registration statement; 12.31 (ii) has been convicted, within five years before the 12.32 filing of the notice required under clause (5), of a felony or 12.33 misdemeanor in connection with the offer, sale, or purchase of a 12.34 security or franchise, or a felony involving fraud or deceit, 12.35 including but not limited to forgery, embezzlement, obtaining 12.36 money under false pretenses, larceny, or conspiracy to defraud; 13.1 (iii) is subject to an effective administrative order or 13.2 judgment entered by a state securities administrator within five 13.3 years before the filing of the notice required under clause (5), 13.4 that prohibits, denies, or revokes the use of an exemption from 13.5 securities registration, that prohibits the transaction of 13.6 business by the person as a broker-dealer or agent, orthat is 13.7 based on fraud, deceit, an untrue statement of a material fact, 13.8 or an omission to state a material fact; or 13.9 (iv) is subject to an order, judgment, or decree of a court 13.10 entered within five years before the filing of the notice 13.11 required under clause (5), temporarily, preliminarily, or 13.12 permanently restraining or enjoining the person from engaging in 13.13 or continuing any conduct or practice in connection with the 13.14 offer, sale, or purchase of a security, or the making of a false 13.15 filing with a state. 13.16 A disqualification under paragraph (h) involving a 13.17 broker-dealer or agent is waived if the broker-dealer or agent 13.18 is or continues to be licensed in the state in which the 13.19 administrative order or judgment was entered against the person 13.20 or if the broker-dealer or agent is or continues to be licensed 13.21 in this state as a broker-dealer or agent after notifying the 13.22 commissioner of the act or event causing disqualification. 13.23 The commissioner may waive a disqualification under 13.24 paragraph (h) upon a showing of good cause that it is not 13.25 necessary under the circumstances that use of the exemption be 13.26 denied. 13.27 A disqualification under paragraph (h) may be waived if the 13.28 state securities administrator or agency of the state that 13.29 created the basis for disqualification has determined, upon a 13.30 showing of good cause, that it is not necessary under the 13.31 circumstances that an exemption from registration of securities 13.32 under the state's laws be denied. 13.33 It is a defense to a violation of paragraph (h) based upon 13.34 a disqualification if the issuer sustains the burden of proof to 13.35 establish that the issuer did not know, and in the exercise of 13.36 reasonable care could not have known, that a disqualification 14.1 under paragraph (h) existed. 14.2 (2) This exemption must not be available to an issuer with 14.3 respect to a transaction that, although in technical compliance 14.4 with this exemption, is part of a plan or scheme to evade 14.5 registration or the conditions or limitations explicitly stated 14.6 in paragraph (h). 14.7 (3) No commission, finder's fee, or other remuneration 14.8 shall be paid or given, directly or indirectly, for soliciting a 14.9 prospective purchaser, unless the recipient is appropriately 14.10 licensed, or exempt from licensure, in this state as a 14.11 broker-dealer. 14.12 (4) Nothing in this exemption is intended to or should be 14.13 in any way construed as relieving issuers or persons acting on 14.14 behalf of issuers from providing disclosure to prospective 14.15 investors adequate to satisfy the antifraud provisions of the 14.16 securities law of Minnesota. 14.17 (5) The issuer shall file with the commissioner a notice on 14.18 form D as adopted by the Securities and Exchange Commission 14.19 according to Regulation D, Code of Federal Regulations, title 14.20 17, section 230.502. The notice must be filed not later than 15 14.21 days after the first sale in this state of securities in an 14.22 offering under this exemption. Every notice on form D must be 14.23 manually signed by a person duly authorized by the issuer and 14.24 must be accompanied by a consent to service of process on a form 14.25 prescribed by the commissioner. 14.26 (6) A failure to comply with a term, condition, or 14.27 requirement of paragraph (h) will not result in loss of the 14.28 exemption for an offer or sale to a particular individual or 14.29 entity if the person relying on the exemption shows that: (i) 14.30 the failure to comply did not pertain to a term, condition, or 14.31 requirement directly intended to protect that particular 14.32 individual or entity, and the failure to comply was 14.33 insignificant with respect to the offering as a whole; and (ii) 14.34 a good faith and reasonable attempt was made to comply with all 14.35 applicable terms, conditions, and requirements of paragraph (h), 14.36 except that, where an exemption is established only through 15.1 reliance upon this provision, the failure to comply shall 15.2 nonetheless constitute a violation of section 80A.08 and be 15.3 actionable by the commissioner. 15.4 (7) The issuer, upon request by the commissioner, shall, 15.5 within ten days of the request, furnish to the commissioner a 15.6 copy of any and all information, documents, or materials 15.7 furnished to investors or offerees in connection with the offer 15.8 and sale according to paragraph (h). 15.9 (8) Neither compliance nor attempted compliance with the 15.10 exemption provided by paragraph (h), nor the absence of an 15.11 objection or order by the commissioner with respect to an offer 15.12 or sale of securities undertaken according to this exemption, 15.13 shall be considered to be a waiver of a condition of the 15.14 exemption or considered to be a confirmation by the commissioner 15.15 of the availability of this exemption. 15.16 (9) The commissioner may, by rule or order, increase the 15.17 number of purchasers or waive any other condition of this 15.18 exemption. 15.19 (10) The determination whether offers and sales made in 15.20 reliance on the exemption set forth in paragraph (h) shall be 15.21 integrated with offers and sales according to other paragraphs 15.22 of this subdivision shall be made according to the integration 15.23 standard set forth in Rule 502 of Regulation D promulgated by 15.24 the Securities and Exchange Commission, Code of Federal 15.25 Regulations, title 17, section 230.502. If not subject to 15.26 integration according to that rule, offers and sales according 15.27 to paragraph (h) shall not otherwise be integrated with offers 15.28 and sales according to other exemptions set forth in this 15.29 subdivision. 15.30 (i) Any offer (but not a sale) of a security for which a 15.31 registration statement has been filed under sections 80A.01 to 15.32 80A.31, if no stop order or refusal order is in effect and no 15.33 public proceeding or examination looking toward an order is 15.34 pending; and any offer of a security if the sale of the security 15.35 is or would be exempt under this section. The commissioner may 15.36 by rule exempt offers (but not sales) of securities for which a 16.1 registration statement has been filed as the commissioner deems 16.2 appropriate, consistent with the purposes of sections 80A.01 to 16.3 80A.31. 16.4 (j) The offer and sale by a cooperative organized under 16.5 chapter 308A or under the laws of another state, of its 16.6 securities when the securities are offered and sold only to its 16.7 members, or when the purchase of the securities is necessary or 16.8 incidental to establishing membership in the cooperative, or 16.9 when such securities are issued as patronage dividends. This 16.10 paragraph applies to a cooperative organized under the laws of 16.11 another state only if the cooperative has filed with the 16.12 commissioner a consent to service of process under section 16.13 80A.27, subdivision 7, and has, not less than ten days prior to 16.14 the issuance or delivery, furnished the commissioner with a 16.15 written general description of the transaction and any other 16.16 information that the commissioner requires by rule or otherwise. 16.17 This exemption only applies when the issuing cooperative is16.18 seeking to raise up to $1,000,000.16.19 (l) The issuance and delivery of any securities of one 16.20 corporation to another corporation or its security holders in 16.21 connection with a merger, exchange of shares, or transfer of 16.22 assets whereby the approval of stockholders of the other 16.23 corporation is required to be obtained, provided, that the 16.24 commissioner has been furnished with a general description of 16.25 the transaction and with other information as the commissioner 16.26 by rule prescribes not less than ten days prior to the issuance 16.27 and delivery. 16.28 (m) Any transaction between the issuer or other person on 16.29 whose behalf the offering is made and an underwriter or among 16.30 underwriters. 16.31 (n) The distribution by a corporation of its or other 16.32 securities to its own security holders as a stock dividend or as 16.33 a dividend from earnings or surplus or as a liquidating 16.34 distribution; or upon conversion of an outstanding convertible 16.35 security; or pursuant to a stock split or reverse stock split. 16.36 (o) Any offer or sale of securities by an affiliate of the 17.1 issuer thereof if: (1) a registration statement is in effect 17.2 with respect to securities of the same class of the issuer and 17.3 (2) the offer or sale has been exempted from registration by 17.4 rule or order of the commissioner. 17.5 (p) Any transaction pursuant to an offer to existing 17.6 security holders of the issuer, including persons who at the 17.7 time of the transaction are holders of convertible securities, 17.8 nontransferable warrants, or transferable warrants exercisable 17.9 within not more than 90 days of their issuance, if: (1) no 17.10 commission or other remuneration (other than a standby 17.11 commission) is paid or given directly or indirectly for 17.12 soliciting any security holder in this state; and (2) the 17.13 commissioner has been furnished with a general description of 17.14 the transaction and with other information as the commissioner 17.15 may by rule prescribe no less than ten days prior to the 17.16 transaction. 17.17 (q) Any nonissuer sales of any security, including a 17.18 revenue obligation, issued by the state of Minnesota or any of 17.19 its political or governmental subdivisions, municipalities, 17.20 governmental agencies, or instrumentalities. 17.21 (r) Any transaction as to which the commissioner by rule or 17.22 order finds that registration is not necessary in the public 17.23 interest and for the protection of investors. 17.24 (s) An offer or sale of a security issued in connection 17.25 with an employee's stock purchase, savings, option, profit 17.26 sharing, pension, or similar employee benefit plan, if the 17.27 following conditions are met: 17.28 (1) the issuer, its parent corporation or any of its 17.29 majority-owned subsidiaries offers or sells the security 17.30 according to a written benefit plan or written contract relating 17.31 to the compensation of the purchaser; and 17.32 (2) the class of securities offered according to the plan 17.33 or contract, or if an option or right to purchase a security, 17.34 the class of securities to be issued upon the exercise of the 17.35 option or right, is registered under section 12 of the 17.36 Securities Exchange Act of 1934, or is a class of securities 18.1 with respect to which the issuer files reports according to 18.2 section 15(d) of the Securities Exchange Act of 1934; or 18.3 (3) the issuer fully complies with the provisions of Rule 18.4 701 as adopted by the Securities and Exchange Commission, Code 18.5 of Federal Regulations, title 12, section 230.701. 18.6 The issuer shall file not less than ten days before the 18.7 transaction, a general description of the transaction and any 18.8 other information that the commissioner requires by rule or 18.9 otherwise or, if applicable, a Securities and Exchange Form S-8. 18.10 Annually, within 90 days after the end of the issuer's fiscal 18.11 year, the issuer shall file a notice as provided with the 18.12 commissioner. 18.13 (t) Any sale of a security of an issuer that is a pooled 18.14 income fund, a charitable remainder trust, or a charitable lead 18.15 trust that has a qualified charity as the only charitable 18.16 beneficiary. 18.17 (u) Any sale by a qualified charity of a security that is a 18.18 charitable gift annuity if the issuer has a net worth, otherwise 18.19 defined as unrestricted fund balance, of not less than $300,000 18.20 and either: (1) has been in continuous operation for not less 18.21 than three years; or (2) is a successor or affiliate of a 18.22 qualified charity that has been in continuous operation for not 18.23 less than three years. 18.24 Sec. 10. Minnesota Statutes 1998, section 80C.05, 18.25 subdivision 4, is amended to read: 18.26 Subd. 4. An application for registration that has not18.27 become effective will be considered withdrawnIf no activity 18.28 occurs with respect to thean application for registration for a 18.29 period of 120 days, the commissioner may by order declare the 18.30 application withdrawn. 18.31 Sec. 11. Minnesota Statutes 1998, section 80C.07, is 18.32 amended to read: 18.33 80C.07 [AMENDMENT OF REGISTRATION.] 18.34 A person with a registration in effect shall, within 30 18.35 days after the occurrence of any material change in the 18.36 information on file with the commissioner, notify the 19.1 commissioner in writing of the change by an application to amend 19.2 the registration accompanied by a fee of $100. The commissioner 19.3 may by rule define what shall be considered a material change 19.4 for such purposes, and may determine the circumstances under 19.5 which a revised public offering statement must accompany the 19.6 application. If the amendment is approved by the commissioner, 19.7 it shall become effective upon the issuance by the commissioner 19.8 of an order amending the registration. 19.9 The commissioner may withdraw an amendment application that 19.10 has not become effective. If no activity occurs with respect to 19.11 the application for a period of 120 days, the commissioner may 19.12 by order declare the application withdrawn. 19.13 Sec. 12. Minnesota Statutes 1998, section 82.22, 19.14 subdivision 13, is amended to read: 19.15 Subd. 13. [CONTINUING EDUCATION.] (a) After their first 19.16 renewal date, all real estate salespersons and all real estate 19.17 brokers shall be required to successfully complete 30 hours of 19.18 real estate continuing education, either as a student or a 19.19 lecturer, in courses of study approved by the commissioner, 19.20 during each 24-month license period. At least 15 of the 30 19.21 credit hours must be completed during the first 12 months of the 19.22 24-month licensing period. Salespersons and brokers whose 19.23 initial license period extends more than 12 months are required 19.24 to complete 15 hours of real estate continuing education during 19.25 the initial license period. Those licensees who will receive a 19.26 12-month license on July 1, 1995, because of the staggered 19.27 implementation schedule must complete 15 hours of real estate 19.28 continuing education as a requirement for renewal on July 1, 19.29 1996. Licensees may not claim credit for continuing education 19.30 not actually completed as of the date their report of continuing 19.31 education compliance is filed. 19.32 (b) The commissioner shall adopt rules defining the 19.33 standards for course and instructor approval, and may adopt 19.34 rules for the proper administration of this subdivision. The 19.35 commissioner may not approve a course which can be completed by 19.36 the student at home or outside the classroom without the 20.1 supervision of an instructor approved by the department of 20.2 commerce. The commissioner has discretion to establish a pilot 20.3 program to explore delivery of accredited courses using new 20.4 delivery technology, including interactive technology. This 20.5 pilot program expires on August 1, 20002001. 20.6 (c) Any program approved by Minnesota continuing legal 20.7 education shall be approved by the commissioner of commerce for 20.8 continuing education for real estate brokers and salespeople if 20.9 the program or any part thereof relates to real estate. 20.10 (d) As part of the continuing education requirements of 20.11 this section, the commissioner shall require that all real 20.12 estate brokers and salespersons receive: 20.13 (1) at least two hours of training during each license 20.14 period in courses in laws or regulations on agency 20.15 representation and disclosure; and 20.16 (2) at least two hours of training during each license 20.17 period in courses in state and federal fair housing laws, 20.18 regulations, and rules, or other antidiscrimination laws. 20.19 Clause (1) does not apply to real estate salespersons and 20.20 real estate brokers engaged solely in the commercial real estate 20.21 business who file with the commissioner a verification of this 20.22 status along with the continuing education report required under 20.23 paragraph (a). 20.24 (e) The commissioner is authorized to establish a procedure 20.25 for renewal of course accreditation. 20.26 Sec. 13. Minnesota Statutes 1998, section 82A.04, 20.27 subdivision 4, is amended to read: 20.28 Subd. 4. [EFFECTIVE DATE.] Unless an order denying20.29 registration under section 82A.12 is in effect, or unless20.30 declared effective by order of the commissioner prior thereto,20.31 the application for registration shall automatically become20.32 effective upon the expiration of 15 business days following20.33 filing with the commissioner, but an applicant may consent in20.34 writing to the delay of registration until the time the20.35 commissioner may issue an order of registration. If the20.36 commissioner requests additional information with respect to the21.1 application, the application shall become effective upon the21.2 expiration of 15 business days following the filing with the21.3 commissioner of the additional information unless an order21.4 denying registration under section 82A.12 is in effect or unless21.5 declared effective by order of the commissioner prior thereto.21.6 The registration is effective on the date the commissioner 21.7 declares by order. 21.8 Sec. 14. Minnesota Statutes 1998, section 82A.04, is 21.9 amended by adding a subdivision to read: 21.10 Subd. 5. [WITHDRAWAL OF APPLICATION.] If no activity 21.11 occurs with respect to an application for a period of 120 days, 21.12 the commissioner may by order declare the application 21.13 withdrawn. No part of the filing fee will be returned by the 21.14 commissioner if a registration application is withdrawn 21.15 according to this subdivision. 21.16 Sec. 15. Minnesota Statutes 1998, section 82B.14, is 21.17 amended to read: 21.18 82B.14 [EXPERIENCE REQUIREMENT.] 21.19 (a) As a prerequisite for licensing as a registered real 21.20 property appraiser or licensed real property appraiser, an 21.21 applicant must present evidence satisfactory to the commissioner 21.22 that the person has obtained 2,000 hours of experience in real 21.23 property appraisal. 21.24 As a prerequisite for licensing as a certified residential 21.25 real property appraiser, an applicant must present evidence 21.26 satisfactory to the commissioner that the person has obtained 21.27 2,500 hours of experience in real property appraisal. 21.28 As a prerequisite for licensing as a certified general real 21.29 property appraiser, an applicant must present evidence 21.30 satisfactory to the commissioner that the person has obtained 21.31 3,000 hours of experience in real property appraisal. At least 21.32 50 percent, or 1,500 hours, must be in nonresidential appraisal 21.33 work. 21.34 (b) Each applicant for license under section 82B.11, 21.35 subdivision 3, 4, or 5, shall give under oath a detailed listing 21.36 of the real estate appraisal reports or file memoranda for which 22.1 experience is claimed by the applicant. Upon request, the 22.2 applicant shall make available to the commissioner for 22.3 examination, a sample of appraisal reports that the applicant 22.4 has prepared in the course of appraisal practice. 22.5 (c) Applicants may not receive credit for experience 22.6 accumulated while unlicensed, if the experience is based on 22.7 activities which required a license under this section. 22.8 Sec. 16. Minnesota Statutes 1998, section 83.23, is 22.9 amended by adding a subdivision to read: 22.10 Subd. 5. [WITHDRAWAL OF APPLICATION.] If no activity 22.11 occurs with respect to an application for a period of 120 days, 22.12 the commissioner may by order declare the application 22.13 withdrawn. No part of the filing fee will be returned by the 22.14 commissioner if a registration application is withdrawn 22.15 according to this subdivision. 22.16 Sec. 17. Minnesota Statutes 1998, section 308A.711, 22.17 subdivision 1, is amended to read: 22.18 Subdivision 1. [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 22.19 Notwithstanding the provisions of section 345.43, a cooperative 22.20 may, in lieu of paying or delivering to the commissioner of 22.21 commerce the unclaimed property specified in its report of 22.22 unclaimed property, distribute the unclaimed property to a 22.23 corporation or organization that is exempt from taxation under 22.24 section 290.05, subdivision 1, paragraph (b), or 2. A 22.25 cooperative making the election to distribute unclaimed property 22.26 shall, within 20 days after the time specified in section 345.4222.27 for claiming the property from the holder,85 days following the 22.28 publication of lists of abandoned property file with the 22.29 commissioner of commerce: 22.30 (1) a verified written explanation of the proof of claim of 22.31 an owner establishing a right to receive the abandoned property; 22.32 (2) any errors in the presumption of abandonment; 22.33 (3) the name, address, and exemption number of the 22.34 corporation or organization to which the property was or is to 22.35 be distributed; and 22.36 (4) the approximate date of distribution. 23.1 Sec. 18. Minnesota Statutes 1998, section 326.975, 23.2 subdivision 1, is amended to read: 23.3 Subdivision 1. [GENERALLY.] (a) In addition to any other 23.4 fees, each applicant for a license under sections 326.83 to 23.5 326.98 shall pay a fee to the contractor's recovery fund. The 23.6 contractor's recovery fund is created in the state treasury and 23.7 must be administered by the commissioner in the manner and 23.8 subject to all the requirements and limitations provided by 23.9 section 82.34 with the following exceptions: 23.10 (1) each licensee who renews a license shall pay in 23.11 addition to the appropriate renewal fee an additional fee which 23.12 shall be credited to the contractor's recovery fund. The amount 23.13 of the fee shall be based on the licensee's gross annual 23.14 receipts for the licensee's most recent fiscal year preceding 23.15 the renewal, on the following scale: 23.16 Fee Gross Receipts 23.17 $100 under $1,000,000 23.18 $150 $1,000,000 to $5,000,000 23.19 $200 over $5,000,000 23.20 Any person who receives a new license shall pay a fee based on 23.21 the same scale; 23.22 (2) the sole purpose of this fund is to compensate any 23.23 aggrieved owner or lessee of residential property located within 23.24 this state who obtains a final judgment in any court of 23.25 competent jurisdiction against a licensee licensed under section 23.26 326.84, on grounds of fraudulent, deceptive, or dishonest 23.27 practices, conversion of funds, or failure of performance 23.28 arising directly out of any transaction when the judgment debtor 23.29 was licensed and performed any of the activities enumerated 23.30 under section 326.83, subdivision 19, on the owner's residential 23.31 property or on residential property rented by the lessee, or on 23.32 new residential construction which was never occupied prior to 23.33 purchase by the owner, or which was occupied by the licensee for 23.34 less than one year prior to purchase by the owner, and which 23.35 cause of action arose on or after April 1, 1994; 23.36 (3) nothing may obligate the fund for more than $50,000 per 24.1 claimant, nor more than $50,000 per licensee; and 24.2 (4) nothing may obligate the fund for claims based on a 24.3 cause of action that arose before the licensee paid the recovery 24.4 fund fee set in clause (1), or as provided in section 326.945, 24.5 subdivision 3. 24.6 (b) Should the commissioner pay from the contractor's 24.7 recovery fund any amount in settlement of a claim or toward 24.8 satisfaction of a judgment against a licensee, the license shall 24.9 be automatically suspended upon the effective date of an order 24.10 by the court authorizing payment from the fund. No licensee 24.11 shall be granted reinstatement until the licensee has repaid in 24.12 full, plus interest at the rate of 12 percent a year, twice the 24.13 amount paid from the fund on the licensee's account, and has 24.14 obtained a surety bond issued by an insurer authorized to 24.15 transact business in this state in the amount of at least 24.16 $40,000. 24.17 Sec. 19. [332.355] [AGENCY RESPONSIBILITY FOR COLLECTORS.] 24.18 The commissioner may take action against a collection 24.19 agency for any violations of debt collection laws by its debt 24.20 collectors. The commissioner may also take action against the 24.21 debt collectors themselves for these same violations. 24.22 Sec. 20. Minnesota Statutes 1998, section 345.515, is 24.23 amended to read: 24.24 345.515 [AGREEMENTS TO LOCATE REPORTED PROPERTY.] 24.25 It is unlawful for a person to seek or receive from another24.26 person or contract with a person for a fee or compensation for24.27 locating property knowing it to have been reported or paid or24.28 delivered to the commissioner pursuant to chapter 345 prior to24.29 seven months after the date of published notice by the24.30 commissioner as required by section 3184.108.40.206 No agreement entered into after seven months from the date24.32 of published notice by the commissioner is valid if a person24.33 thereby undertakes to locate property included in a report for a24.34 fee or other compensation exceeding ten percent of the value of24.35 the recoverable property unless the agreement is in writing and24.36 signed by the owner and discloses the nature and value of the25.1 property and the name and address of the holder thereof as such25.2 facts have been reported. Nothing in this section shall be25.3 construed to prevent an owner from asserting at any time that an25.4 agreement to locate property is based upon an excessive or25.5 unjust consideration.(a) An agreement by an owner, the primary 25.6 purpose of which is to locate, deliver, recover, or assist in 25.7 the recovery of property that is presumed abandoned, is void and 25.8 unenforceable if it was entered into during the period beginning 25.9 on the date the property was presumed abandoned and extending to 25.10 a time that is 24 months after the date the property is paid or 25.11 delivered to the administrator. This paragraph does not apply 25.12 to an owner's agreement with an attorney to file a claim as to 25.13 identified property or contest the administrator's denial of a 25.14 claim. 25.15 (b) An agreement by an owner, the primary purpose of which 25.16 is to locate, deliver, recover, or assist in the recovery of 25.17 property, is enforceable only if the agreement is in writing, 25.18 clearly sets forth the nature of the property and the services 25.19 to be rendered, is signed by the apparent owner, and states the 25.20 value of the property before and after the fee or other 25.21 compensation has been deducted. 25.22 (c) If an agreement covered by this section applies to 25.23 mineral proceeds and the agreement contains a provision to pay 25.24 compensation that includes a portion of the underlying minerals 25.25 or any mineral proceeds not then presumed abandoned, the 25.26 provision is void and unenforceable. 25.27 (d) An agreement covered by this section that provides for 25.28 compensation that is unconscionable is unenforceable except by 25.29 the owner. An owner who has agreed to pay compensation that is 25.30 unconscionable, or the administrator on behalf of the owner, may 25.31 maintain an action to reduce the compensation to a conscionable 25.32 amount. The court may award reasonable attorney fees to an 25.33 owner who prevails in the action. 25.34 (e) This section does not preclude an owner from asserting 25.35 that an agreement covered by this section is invalid on grounds 25.36 other than unconscionable compensation. 26.1 Sec. 21. [359.085] [STANDARDS OF CONDUCT FOR NOTARIAL 26.2 ACTS.] 26.3 Subdivision 1. [ACKNOWLEDGMENTS.] In taking an 26.4 acknowledgment, the notarial officer must determine, either from 26.5 personal knowledge or from satisfactory evidence, that the 26.6 person appearing before the officer and making the 26.7 acknowledgment is the person whose true signature is on the 26.8 instrument. 26.9 Subd. 2. [VERIFICATIONS.] In taking a verification upon 26.10 oath or affirmation, the notarial officer must determine, either 26.11 from personal knowledge or from satisfactory evidence, that the 26.12 person appearing before the officer and making the verification 26.13 is the person whose true signature is on the statement verified. 26.14 Subd. 3. [WITNESSING OR ATTESTING SIGNATURES.] In 26.15 witnessing or attesting a signature the notarial officer must 26.16 determine, either from personal knowledge or from satisfactory 26.17 evidence, that the signature is that of the person appearing 26.18 before the officer and named in the document. 26.19 Subd. 4. [CERTIFYING OR ATTESTING DOCUMENTS.] In 26.20 certifying or attesting a copy of a document or other item, the 26.21 notarial officer must determine that the proffered copy is a 26.22 full, true, and accurate transcription or reproduction of that 26.23 which was copied. 26.24 Subd. 5. [MAKING OR NOTING PROTESTS OF NEGOTIABLE 26.25 INSTRUMENTS.] In making or noting a protest of a negotiable 26.26 instrument the notarial officer must determine the matters set 26.27 forth in section 336.3-505. 26.28 Subd. 6. [SATISFACTORY EVIDENCE.] A notarial officer has 26.29 satisfactory evidence that a person is the person whose true 26.30 signature is on a document if that person (i) is personally 26.31 known to the notarial officer, (ii) is identified upon the oath 26.32 or affirmation of a credible witness personally known to the 26.33 notarial officer, or (iii) is identified on the basis of 26.34 identification documents. 26.35 Subd. 7. [PROHIBITED ACTS.] A notarial officer may not 26.36 acknowledge, witness or attest to the officer's own signature, 27.1 or take a verification of the officer's own oath or affirmation. 27.2 Sec. 22. [EFFECTIVE DATE.] 27.3 Sections 1, 2 to 6, 8 to 12, 15, and 18 to 21 are effective 27.4 the day following enactment, except that the amendment made in 27.5 section 9 to Minnesota Statutes 1999 Supplement, section 80A.15, 27.6 subdivision 2, paragraph (j), is effective retroactive to August 27.7 1, 1999.