Minnesota Legislature
HF 3845
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/21/2006 |
Current Version - as introduced
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1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35
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A bill for an act
relating to commerce; regulating auctioneers; appropriating money; amending
Minnesota Statutes 2004, sections 45.011, subdivision 1; 330.02; 330.025;
330.03; 330.09; 330.11, subdivision 2; 336.2-328; Minnesota Statutes 2005
Supplement, sections 82.23; 330.01; proposing coding for new law in Minnesota
Statutes, chapter 330.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 45.011, subdivision 1, is amended to read:
Sec. 2.
Minnesota Statutes 2005 Supplement, section 82.23, is amended to read:
82.23 EXCEPTIONS.
Unless a person is licensed or otherwise required to be licensed under this chapter,
the term real estate broker does not include:
(a) a licensed practicing attorney if the attorney complies in all respects with the
trust account provisions of this chapter;
(b) a receiver, trustee, administrator, guardian, executor, or other person appointed
by or acting under the judgment or order of any court;
(c) any person owning and operating a cemetery and selling lots therein solely for
use as burial plots;
(d) any custodian, janitor, or employee of the owner or manager of a residential
building who leases residential units in the building;
(e) any bank, trust company, savings association, industrial loan and thrift company,
regulated lender under chapter 56, public utility, or land mortgage or farm loan association
organized under the laws of this state or the United States, when engaged in the transaction
of business within the scope of its corporate powers as provided by law;
(f) public officers while performing their official duties;
(g) employees of persons enumerated in clauses (b), (e), and (f), when engaged in
the specific performance of their duties;
(h) deleted text begin any person who acts as an auctioneer bonded in conformity with section 330.02,
when that person is engaged in the specific performance of duties as an auctioneer, and
when that person has been employed to auction real estate by a person licensed under this
chapter or when the auctioneer has engaged a licensed attorney to supervise the real
estate transaction;
deleted text end
deleted text begin (i)deleted text end any person who acquires real estate for the purpose of engaging in and does
engage in, or who is engaged in the business of constructing residential, commercial or
industrial buildings for the purpose of resale if no more than 25 such transactions occur in
any 12-month period and the person complies with section 82.50;
deleted text begin (j)deleted text end new text begin (i) new text end any person who is licensed as a securities broker-dealer or is licensed as
a securities agent representing a broker-dealer pursuant to chapter 80A and who offers
to sell or sells an interest or estate in real estate which is a security as defined in section
80A.14, subdivision 18, and is registered or exempt from registration or part of a
transaction exempt from registration pursuant to chapter 80A, when acting solely as
an incident to the sale of these securities;
deleted text begin (k)deleted text end new text begin (j) new text end any person who offers to sell or sells a business opportunity which is a
franchise registered pursuant to chapter 80C, when acting solely to sell the franchise;
deleted text begin (l)deleted text end new text begin (k)new text end any person who contracts with or solicits on behalf of a provider a contract
with a resident or prospective resident to provide continuing care in a facility, pursuant
to the Continuing Care Facility Disclosure and Rehabilitation Act (chapter 80D), when
acting solely as incident to the contract;
deleted text begin (m)deleted text end new text begin (l)new text end any broker-dealer or agent of a broker-dealer when participating in a
transaction in which all or part of a business opportunity or business, including any
interest therein, is conveyed or acquired pursuant to an asset purchase, merger, exchange
of securities, or other business combination, if the agent or broker-dealer is licensed
pursuant to chapter 80A;new text begin or
new text end
deleted text begin (n)deleted text end new text begin (m)new text end an accountant acting incident to the practice of the accounting profession if
the accountant complies in all respects with the trust account provisions of this chapter.
Sec. 3.
Minnesota Statutes 2005 Supplement, section 330.01, is amended to read:
330.01 AUCTIONEERS' LICENSES, TO WHOM GRANTED.
Subdivision 1.
Generally.
(a) The deleted text begin county auditordeleted text end new text begin commissioner of commercenew text end may
license any person having the qualifications specified in clause (b) of this subdivision as an
auctioneer. The license shall be issued by the deleted text begin auditordeleted text end new text begin commissionernew text end and shall authorize the
licensee to conduct the business of an auctioneer in the state of Minnesota for the period
of one year.deleted text begin It shall be recorded by the auditor in a book kept for that purpose.deleted text end The license
must deleted text begin specify the county issuing the license and mustdeleted text end new text begin indicate that the license is issued by
the commissioner andnew text end contain a number that individually identifies the auctioneer holding
the license. Before the license is issued the applicant shall pay deleted text begin into the county treasurydeleted text end new text begin to
the commissioner for deposit into the general fundnew text end a fee of deleted text begin $20deleted text end new text begin $100new text end .
(b) A natural person is qualified to be licensed as an auctioneer if 18 years of age
or over and a resident of the county of application for at least six months immediately
preceding the date of application. No copartnership, association or corporation may be
licensed as an auctioneer. However, nothing in this subdivision shall be construed as
preventing auctioneers who are duly licensed in accordance with the provisions of this
chapter, from combining in associations, copartnerships, or corporations, provided that
each and every member of these associations or copartnerships and each and every person
or agent conducting auction sales on behalf of these corporations is a duly licensed
auctioneer as provided in this chapter. Nothing herein shall be construed to apply to the
owner of property for at least six months selling it at an auction.
new text begin
(c) A person may act as auctioneer for no compensation at an auction to benefit a
charity without obtaining an auctioneer's license. This paragraph does not permit the
person to sell real estate.
new text end
Sec. 4.
Minnesota Statutes 2004, section 330.02, is amended to read:
330.02 BOND.
Every auctioneer, before making sales, shall give a corporate surety bond to the
deleted text begin countydeleted text end new text begin statenew text end in a penal sum of not less than deleted text begin $1,000 nor more than $3,000deleted text end new text begin $20,000new text end to
be fixed by the deleted text begin treasurerdeleted text end new text begin commissionernew text end and with sureties approved by the deleted text begin treasurerdeleted text end new text begin
commissionernew text end , conditioned that the auctioneer will pay all sums required by law and in
all things conform to the laws relating to auctioneers. The deleted text begin treasurerdeleted text end new text begin commissionernew text end , for
approval, shall endorse the bond, and file it in the deleted text begin treasurer'sdeleted text end new text begin commissioner'snew text end office.
Sec. 5.
Minnesota Statutes 2004, section 330.025, is amended to read:
330.025 CITY OR TOWN LICENSES.
Notwithstanding sections 412.221, subdivision 19, and 368.01, subdivision 11,
or other law or provision of home rule charter to the contrary, a statutory or home rule
charter city or town may not require a person licensed as an auctioneer by a deleted text begin countydeleted text end new text begin the
commissionernew text end and bonded under this chapter to obtain an additional license or give an
additional bond in order to act as an auctioneer in the city or town. A statutory or home
rule charter city or town may require an auctioneer who intends to conduct an auction in
the city or town to submit proof of licensure and compliance with the bond requirements
of this chapter at least 14 days before the date of the auction.
Sec. 6.
Minnesota Statutes 2004, section 330.03, is amended to read:
330.03 ACCOUNT OF SALES.
Every auctioneer shall keep new text begin for six years after each auction new text end an accurate account of
all property sold, the names of the persons from whom the same was received and of those
to whom it was sold, deleted text begin anddeleted text end the new text begin selling new text end pricedeleted text begin .deleted text end new text begin , commission received, and bidder registration
sheets with bid numbers of those in attendance. This section applies to the auctioneer who
is responsible for accounting and clerking the auction.
new text end
Sec. 7.
new text begin
[330.085] BIDDING BY AUCTIONEER; DISCLOSURE REQUIRED.
new text end
new text begin
(a) An auctioneer shall not bid at an auction conducted by the auctioneer unless
the auctioneer has made the intent to do so known in a signed written disclosure and
agreement at the time of contract to auction.
new text end
new text begin
(b) No one shall bid on behalf of the auctioneer or the auctioneer's company at an
auction the auctioneer has contracted for.
new text end
new text begin
(c) If signed written disclosure of the auctioneer's intent to bid has been made, the
auctioneer must clearly state to the bidding public that the auctioneer will be bidding, and
with each bid submitted, make it clear that the bid is made by the auctioneer.
new text end
new text begin
(d) If an auctioneer is bidding on the property the auctioneer has been contracted to
sell, the auctioneer must disclose to the bidding public the reserve price in order that all
bidders are on an equal footing. If the auctioneer intends to bid, or reserves the right to
bid, the auctioneer shall disclose to the seller this effect of the auctioneer bidding prior to
the seller entering into the auction contract permitting the auctioneer to bid.
new text end
new text begin
(e) An auctioneer bidding at the auction the auctioneer has been contracted to
perform is not eligible for a buyer's fee or commission on property purchased by the
auctioneer in order that all bidders are on an equal footing.
new text end
Sec. 8.
new text begin
[330.087] SALE OF REAL ESTATE.
new text end
new text begin
(a) An auctioneer shall not contract to sell, auction, or otherwise sell real estate
unless the auctioneer is licensed as a real estate broker under chapter 82, and then only in
compliance with the auctioneer's real estate licensure under chapter 82.
new text end
new text begin
(b) An auctioneer shall make audible audio recordings of all sales of real estate and
retain those audio recordings for six years.
new text end
new text begin
(c) The auctioneer of real estate shall state whether the property will be sold with or
without reserve in explicit terms in all promotional auction literature and orally before the
commencement of the auction.
new text end
Sec. 9.
new text begin
[330.088] RULES OF SALE.
new text end
new text begin
An auctioneer shall not change the rules of an auction after clear notice of the rules.
new text end
Sec. 10.
Minnesota Statutes 2004, section 330.09, is amended to read:
330.09 NOTIFICATION OF CHANGE OF ADDRESS.
Notice in writing shall be given to the deleted text begin auditor of the county where licenseddeleted text end new text begin
commissionernew text end by each licensee of any change of address, whereupon the deleted text begin auditordeleted text end new text begin
commissionernew text end shall issue a duplicate license showing the licensee's new address for which
a fee of deleted text begin $3deleted text end new text begin $20new text end shall be paid new text begin to the commissioner for deposit new text end into the deleted text begin county treasurydeleted text end new text begin state
general fundnew text end . A change of address, without notification to the deleted text begin auditordeleted text end new text begin commissionernew text end , shall
result in the automatic cancellation of any license theretofore issued after the expiration of
30 days from the date of such change of address.
Sec. 11.
Minnesota Statutes 2004, section 330.11, subdivision 2, is amended to read:
Subd. 2.
License and other state's laws.
A nonresident applicant must submit
to the deleted text begin county auditordeleted text end new text begin commissionernew text end with the application a duly certified copy of the
applicant's auctioneer's license, if one was issued by the resident state, and a copy of the
state auction laws such as exist in the resident state, certified by the secretary of state or
other authorized state official of such state, that the submitted copy is a true copy of the
auction laws of such state, as they exist at the date of application, in order that the attorney
general of the state of Minnesota may determine whether reciprocity exists.
If, subsequent to the issuance of a nonresident license, the laws of the state of such
nonresident shall not be reciprocal with the state of Minnesota, it shall result in the
automatic revocation of the nonresident auctioneer's license issued to any resident of such
state under the provisions of this chapter.
Sec. 12.
Minnesota Statutes 2004, section 336.2-328, is amended to read:
336.2-328 SALE BY AUCTION.
(1) In a sale by auction if goods are put up in lots each lot is the subject of a separate
sale.
(2) A sale by auction is complete when the auctioneer deleted text begin sodeleted text end announces deleted text begin by the fall of the
hammer or in other customary manner. Where a bid is made while the hammer is falling
in acceptance of a prior bid the auctioneer may reopen the bidding or declare the goods
sold under the bid on which the hammer was fallingdeleted text end new text begin the auctioneer's last call for bids, and
counts the bidder down with "going once, going twice, SOLD" and takes the bid numbernew text end .
(3) Such a sale is with reserve unless the goods are in explicit terms put up without
reserve. In an auction with reserve the auctioneer may withdraw the goods at any time
before announcing completion of the sale. In an auction without reserve, after the
auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless
no bid is made within a reasonable time. In either case a bidder may retract a bid until the
auctioneer's announcement of completion of the sale, but a bidder's retraction does not
revive any previous bid.
(4) deleted text begin If the auctioneer knowingly receives a bid on the seller's behalf or the seller
makes or procures such a bid, and notice has not been given that liberty for such bidding is
reserved, the buyer may either avoid the sale or take the goods at the price of the last good
faith bid prior to the completion of the sale. This subsection shall not apply to any bid
at a forced sale.deleted text end new text begin No fictitious bids on behalf of the seller or auctioneer shall be made or
accepted by the auctioneer for the purpose of stimulating the auction. If this prohibition is
violated, the buyer with the last legitimate good-faith bid may void the sale or take the
goods at the last good-faith bid.
new text end
Sec. 13. new text begin APPROPRIATION.
new text end
new text begin
$....... is appropriated from the general fund to the commissioner of commerce for
fiscal year 2007 for fulfilling the commissioner's responsibilities under sections 1 to 12.
new text end
Sec. 14. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 13 are effective January 1, 2007.
new text end