HF 792

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating securities, mortgage
originators and servicers, athlete agents, and the
contractor's recovery fund; amending Minnesota
Statutes 2004, sections 80A.19, by adding a
subdivision; 116J.70, subdivision 2a; 326.975,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 80A.19, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Nasd rules. new text end

new text begin A violation of a rule adopted by
the National Association of Securities Dealers is considered to
be a violation of this chapter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 116J.70,
subdivision 2a, is amended to read:

Subd. 2a.

License; exceptions.

"Business license" or
"license" does not include the following:

(1) any occupational license or registration issued by a
licensing board listed in section 214.01 or any occupational
registration issued by the commissioner of health pursuant to
section 214.13;

(2) any license issued by a county, home rule charter city,
statutory city, township, or other political subdivision;

(3) any license required to practice the following
occupation regulated by the following sections:

(i) abstracters regulated pursuant to chapter 386;

(ii) accountants regulated pursuant to chapter 326A;

(iii) adjusters regulated pursuant to chapter 72B;

(iv) architects regulated pursuant to chapter 326;

(v) assessors regulated pursuant to chapter 270;

(vi) athletic trainers regulated pursuant to chapter 148;

(vii) attorneys regulated pursuant to chapter 481;

(viii) auctioneers regulated pursuant to chapter 330;

(ix) barbers and cosmetologists regulated pursuant to
chapter 154;

(x) boiler operators regulated pursuant to chapter 183;

(xi) chiropractors regulated pursuant to chapter 148;

(xii) collection agencies regulated pursuant to chapter
332;

(xiii) dentists, registered dental assistants, and dental
hygienists regulated pursuant to chapter 150A;

(xiv) detectives regulated pursuant to chapter 326;

(xv) electricians regulated pursuant to chapter 326;

(xvi) mortuary science practitioners regulated pursuant to
chapter 149A;

(xvii) engineers regulated pursuant to chapter 326;

(xviii) insurance brokers and salespersons regulated
pursuant to chapter 60A;

(xix) certified interior designers regulated pursuant to
chapter 326;

(xx) midwives regulated pursuant to chapter 147D;

(xxi) nursing home administrators regulated pursuant to
chapter 144A;

(xxii) optometrists regulated pursuant to chapter 148;

(xxiii) osteopathic physicians regulated pursuant to
chapter 147;

(xxiv) pharmacists regulated pursuant to chapter 151;

(xxv) physical therapists regulated pursuant to chapter
148;

(xxvi) physician assistants regulated pursuant to chapter
147A;

(xxvii) physicians and surgeons regulated pursuant to
chapter 147;

(xxviii) plumbers regulated pursuant to chapter 326;

(xxix) podiatrists regulated pursuant to chapter 153;

(xxx) practical nurses regulated pursuant to chapter 148;

(xxxi) professional fund-raisers regulated pursuant to
chapter 309;

(xxxii) psychologists regulated pursuant to chapter 148;

(xxxiii) real estate brokers, salespersons, and others
regulated pursuant to chapters 82 and 83;

(xxxiv) registered nurses regulated pursuant to chapter
148;

(xxxv) securities brokers, dealers, agents, and investment
advisers regulated pursuant to chapter 80A;

(xxxvi) steamfitters regulated pursuant to chapter 326;

(xxxvii) teachers and supervisory and support personnel
regulated pursuant to chapter 125;

(xxxviii) veterinarians regulated pursuant to chapter 156;

(xxxix) water conditioning contractors and installers
regulated pursuant to chapter 326;

(xl) water well contractors regulated pursuant to chapter
103I;

(xli) water and waste treatment operators regulated
pursuant to chapter 115;

(xlii) motor carriers regulated pursuant to chapter 221;

(xliii) professional firms regulated under chapter 319B;

(xliv) real estate appraisers regulated pursuant to chapter
82B;

(xlv) residential building contractors, residential
remodelers, residential roofers, manufactured home installers,
and specialty contractors regulated pursuant to chapter 326;

(xlvi) licensed professional counselors regulated pursuant
to chapter 148B;

new text begin (xlvii) residential mortgage originators and residential
mortgage servicers regulated under chapter 58;
new text end

new text begin (xlviii) athlete agents regulated under chapter 81A;
new text end

(4) any driver's license required pursuant to chapter 171;

(5) any aircraft license required pursuant to chapter 360;

(6) any watercraft license required pursuant to chapter
86B;

(7) any license, permit, registration, certification, or
other approval pertaining to a regulatory or management program
related to the protection, conservation, or use of or
interference with the resources of land, air, or water, which is
required to be obtained from a state agency or instrumentality;
and

(8) any pollution control rule or standard established by
the Pollution Control Agency or any health rule or standard
established by the commissioner of health or any licensing rule
or standard established by the commissioner of human services.

Sec. 3.

Minnesota Statutes 2004, section 326.975,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) In addition to any other
fees, each applicant for a license under sections 326.83 to
326.98 shall pay a fee to the contractor's recovery fund. The
contractor's recovery fund is created in the state treasury and
must be administered by the commissioner in the manner and
subject to all the requirements and limitations provided by
section 82.43 with the following exceptions:

(1) each licensee who renews a license shall pay in
addition to the appropriate renewal fee an additional fee which
shall be credited to the contractor's recovery fund. The amount
of the fee shall be based on the licensee's gross annual
receipts for the licensee's most recent fiscal year preceding
the renewal, on the following scale:

Fee Gross Receipts
$100 under $1,000,000
$150 $1,000,000 to $5,000,000
$200 over $5,000,000

Any person who receives a new license shall pay a fee based on
the same scale;

(2) the sole purpose of this fund is to new text begin : (i) new text end compensate
any aggrieved owner or lessee of residential property located
within this state who obtains a final judgment in any court of
competent jurisdiction against a licensee licensed under section
326.84, on grounds of fraudulent, deceptive, or dishonest
practices, conversion of funds, or failure of performance
arising directly out of any transaction when the judgment debtor
was licensed and performed any of the activities enumerated
under section 326.83, subdivision 19, on the owner's residential
property or on residential property rented by the lessee, or on
new residential construction which was never occupied prior to
purchase by the owner, or which was occupied by the licensee for
less than one year prior to purchase by the owner, and which
cause of action arose on or after April 1, 1994; new text begin and (ii)
reimburse the Department of Commerce for all legal and
administrative expenses, including staffing costs, incurred in
administering the fund;
new text end

(3) nothing may obligate the fund for more than $50,000 per
claimant, nor more than $75,000 per licensee; and

(4) nothing may obligate the fund for claims based on a
cause of action that arose before the licensee paid the recovery
fund fee set in clause (1), or as provided in section 326.945,
subdivision 3.

(b) Should the commissioner pay from the contractor's
recovery fund any amount in settlement of a claim or toward
satisfaction of a judgment against a licensee, the license shall
be automatically suspended upon the effective date of an order
by the court authorizing payment from the fund. No licensee
shall be granted reinstatement until the licensee has repaid in
full, plus interest at the rate of 12 percent a year, twice the
amount paid from the fund on the licensee's account, and has
obtained a surety bond issued by an insurer authorized to
transact business in this state in the amount of at least
$40,000.