SF 1636

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating the powers and duties
of, and annual reporting required for, certain
financial institutions; regulating safe deposit
companies; removing obsolete references to the credit
union advisory task force; regulating residential
mortgage originators; regulating real estate brokers
and salespersons; providing for insurance license
renewals; regulating for the voluntary dissolution of
fraternal benefit societies; prohibiting the deceptive
use of a financial institution name; amending
Minnesota Statutes 2004, sections 47.10, subdivision
1; 47.75; 48.10; 48.15, subdivision 4; 48.512, by
adding a subdivision; 52.062, subdivision 2; 55.10,
subdivision 4; 58.16, subdivision 4; 60A.13,
subdivision 5; 64B.30, by adding a subdivision; 82.17,
subdivisions 10, 18; 82.36, subdivision 4; 82.41,
subdivision 13; 299A.61, subdivision 3; 325F.69, by
adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 58; repealing Minnesota
Statutes 2004, section 52.062, subdivision 3;
Minnesota Rules, part 2675.2610, subpart 5.

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

Section 1.

Minnesota Statutes 2004, section 47.10,
subdivision 1, is amended to read:

Subdivision 1.

Authority, approval, limitations.

(a)
Except as otherwise specially provided, the net book value of
land and buildings for the transaction of the business of the
corporation, including parking lots and premises leased to
others, shall not be more than as follows:

(1) for a bank, trust company, savings bank, or stock
savings association, if investment is for acquisition and
improvements to establish a new deleted text begin bank deleted text end new text begin banking office new text end , or is for
improvements to existing property or acquisition and
improvements to adjacent property, approval by the commissioner
of commerce is not required if the total investment does not
exceed 50 percent of its existing capital stock and paid-in
surplus. Upon written prior approval of the commissioner of
commerce, a bank, trust company, savings bank, or stock savings
association may invest in the property and improvements in
clause (1) or for acquisition of nonadjacent property for
expansion or future use, if the aggregate of all such
investments does not exceed 100 percent of its existing capital
stock and paid-in surplus;

(2) for a mutual savings association, five percent of its
net assets.

(b) For purposes of this subdivision, an intervening
highway, street, road, alley, other public thoroughfare, or
easement of any kind does not cause two parcels of real property
to be nonadjacent.

Sec. 2.

Minnesota Statutes 2004, section 47.75, is amended
to read:

47.75 LIMITED TRUSTEESHIP.

Subdivision 1.

Retirement new text begin , health savings, new text end and medical
savings accounts.

new text begin (a) new text end A commercial bank, savings bank, savings
association, credit union, or industrial loan and thrift company
may act as trustee or custodian new text begin :
new text end

new text begin (1) new text end under the Federal Self-Employed Individual Tax
Retirement Act of 1962, as amended deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end of a medical savings account under the Federal Health
Insurance Portability and Accountability Act of 1996, as
amended deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) of a health savings account under the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003,
as amended; new text end and deleted text begin also
deleted text end

new text begin (4) new text end under the Federal Employee Retirement Income Security
Act of 1974, as amended.

new text begin (b) new text end The trustee or custodian may accept the trust funds if
the funds are invested only in savings accounts or time deposits
in the commercial bank, savings bank, savings association,
credit union, or industrial loan and thrift company. All funds
held in the fiduciary capacity may be commingled by the
financial institution in the conduct of its business, but
individual records shall be maintained by the fiduciary for each
participant and shall show in detail all transactions engaged
under authority of this subdivision.

Sec. 3.

Minnesota Statutes 2004, section 48.10, is amended
to read:

48.10 ANNUAL AUDIT; REPORT.

The board of directors of a bank, bank and trust, or trust
company shall annually examine its books, either in person, or
by appointing an examining committee, or an auditor, who may be
an independent auditor or accountant. The examining committee
or auditor shall be solely responsible to the directors. A
report shall be made to the directors as to the scope of the
examination or audit, and also to show those assets, excluding
marketable securities and fixed assets, which are carried on the
books for more than actual value. This report shall be retained
as a permanent record or incorporated in the minutes of the
meeting deleted text begin , and a copy of the report shall be sent to the
commissioner of commerce deleted text end .

Sec. 4.

Minnesota Statutes 2004, section 48.15,
subdivision 4, is amended to read:

Subd. 4.

Retirement new text begin , health savings, new text end and medical savings
accounts.

new text begin (a) new text end A state bank may act as trustee or custodian new text begin :
new text end

new text begin (1) new text end of a self-employed retirement plan under the Federal
Self-Employed Individual Tax Retirement Act of 1962, as
amended deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end of a medical savings account under the Federal Health
Insurance Portability and Accountability Act of 1996, as
amended deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) of a health savings account under the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003,
as amended; new text end and

new text begin (4) new text end of an individual retirement account under the Federal
Employee Retirement Income Security Act of 1974, as amended, if
the bank's duties as trustee or custodian are essentially
ministerial or custodial in nature and the funds are invested
only deleted text begin (1) deleted text end new text begin (i) new text end in the bank's own savings or time deposits; or
deleted text begin (2) deleted text end new text begin (ii) new text end in any other assets at the direction of the customer if
the bank does not exercise any investment discretion, invest the
funds in collective investment funds administered by it, or
provide any investment advice with respect to those account
assets.

new text begin (b) new text end Affiliated discount brokers may be utilized by the bank
acting as trustee or custodian for self-directed IRAs, if
specifically authorized and directed in appropriate documents.
The relationship between the affiliated broker and the bank must
be fully disclosed. Brokerage commissions to be charged to the
IRA by the affiliated broker should be accurately disclosed.
Provisions should be made for disclosure of any changes in
commission rates prior to their becoming effective. The
affiliated broker may not provide investment advice to the
customer.

new text begin (c) new text end All funds held in the fiduciary capacity may be
commingled by the financial institution in the conduct of its
business, but individual records shall be maintained by the
fiduciary for each participant and shall show in detail all
transactions engaged under authority of this subdivision.

new text begin (d) new text end The authority granted by this section is in addition
to, and not limited by, section 47.75.

Sec. 5.

Minnesota Statutes 2004, section 48.512, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Federal law compliance. new text end

new text begin In lieu of the
identification rules in subdivision 2, a financial intermediary
may choose to comply with the federal customer identification
standards set forth in United States Code, title 31, section
5318, and its implementing regulation, Code of Federal
Regulations, title 31, section 103.121, as amended from time to
time.
new text end

Sec. 6.

Minnesota Statutes 2004, section 52.062,
subdivision 2, is amended to read:

Subd. 2.

Suspension.

The commissioner of commerce may
suspend the operation of the credit union by giving notice to
its board of directors by certified mail deleted text begin with a copy to the
advisory council deleted text end . Said notice shall include a list of reasons
for said suspension and a list of any specific violations of
law, bylaw, or rule, and shall specify which operations of the
credit union may be continued during the period of suspension.
The notice shall also fix a time and place for a hearing before
the commissioner of commerce or such person or persons as the
commissioner of commerce may designate. The hearing shall be
held within 60 days of the notice of suspension deleted text begin , and the
advisory council shall sit at such hearing for the purpose of
providing advice and counsel to the commissioner of commerce or
a representative deleted text end . Evidence may be produced at said hearing by
any party thereto, and the commissioner of commerce shall base
the decision as to the continued suspension of operation of the
credit union upon said evidence. If the commissioner of
commerce decides to continue the suspension, the commissioner
shall give notice of the decision to the board of directors of
the credit union.

Sec. 7.

Minnesota Statutes 2004, section 55.10,
subdivision 4, is amended to read:

Subd. 4.

Will searches, burial documents procurement, and
inventory of contents.

(a) Upon being furnished with
satisfactory proof of death of a sole lessee or the last
surviving co-lessee of a safe deposit box, an employee of the
safe deposit company shall open the box and examine the contents
in the presence of an individual who appears in person and
furnishes an affidavit stating that the individual believes:

(1) the box may contain the will or deed to a burial lot or
a document containing instructions for the burial of the lessee
or that the box may contain property belonging to the estate of
the lessee; and

(2) the individual is an interested person as defined in
this section and wishes to open the box for any one or more of
the following purposes:

(i) to conduct a will search;

(ii) to obtain a document required to facilitate the
lessee's wishes regarding body, funeral, or burial arrangements;
or

(iii) to obtain an inventory of the contents of the box.

(b) The safe deposit company may not open the box under
this section if it has received a copy of letters of office of
the representative of the deceased lessee's estate or other
applicable court order.

(c) The safe deposit company need not open the box if:

(1) the box has previously been opened under this section
for the same purpose;

(2) the safe deposit company has received notice of a
written or oral objection from any person or has reason to
believe that there would be an objection; or

(3) the lessee's key or combination is not available.

(d) For purposes of this section, the term "interested
person" means any of the following:

(1) a person named as personal representative in a
purported will of the lessee;

(2) a person who immediately prior to the death of the
lessee had the right of access to the box as a deputy;

(3) the surviving spouse of the lessee;

(4) a devisee of the lessee;

(5) an heir of the lessee;

(6) a person designated by the lessee in a writing
acceptable to the safe deposit company which is filed with the
safe deposit company before death; or

(7) a state or county agency with a claim authorized by
section 256B.15.

(e) For purposes of this section, the term "will" includes
a will or a codicil.

(f) If the box is opened for the purpose of conducting a
will search, the safe deposit company shall remove any document
that appears to be a will and make a true and correct machine
copy thereof, replace the copy in the box, and then deliver the
original thereof to the clerk of court for the county in which
the lessee resided immediately before the lessee's death, if
known to the safe deposit company, otherwise to the clerk of the
court for the county in which the safe deposit box is located.
The will must be personally delivered or sent by registered
mail. If the interested person so requests, any deed to burial
lot or document containing instructions for the burial of the
lessee may be copied by the safe deposit box company and the
copy or copies thereof delivered to the interested person.

(g) If the box is opened for the purpose of obtaining a
document required to facilitate the lessee's wishes regarding
the body, funeral, or burial arrangements, any such document may
be removed from the box and delivered to the interested person
with a true and correct machine copy retained in the box. If
the safe deposit box company discovers a document that appears
to be a will, the safe deposit company shall act in accordance
with paragraph (f).

(h) If the box is opened for the purpose of obtaining an
inventory of the contents of the box, the employee of the safe
deposit company shall make, or cause to be made, an inventory of
the contents of the box, to which the employee and the
interested person shall attest under penalty of perjury to be
correct and complete. Within ten days of opening the box
pursuant to this subdivision, the safe deposit company shall
deliver the original inventory of the contents to the court
administrator for the county in which the lessee resided
immediately before the lessee's death, if known to the safe
deposit company, otherwise to the court administrator for the
county in which the safe deposit box is located. The inventory
must be personally delivered or sent by registered mail. If the
interested person so requests, the safe deposit company shall
make a true and correct copy of any document in the box new text begin , and of
the completed inventory form, new text end and deliver that copy to the
interested person. If the contents of the box include a
document that appears to be a will, the safe deposit company
shall act in accordance with paragraph (f).

(i) new text begin If a box opened for the purpose of conducting an
inventory, will search, or burial document search is completely
empty, the safe deposit company need not follow the procedures
above. Instead, the employee of the safe deposit company can
complete an inventory of the box contents indicating the fact
that the box contained nothing. The form must be signed by the
employee and the interested person. If the interested person so
requests, the safe deposit company may provide a copy of the
completed inventory form to the interested person. The
interested person shall then complete the documentation needed
by the safe deposit company to surrender the empty box. If
another interested person inquires about the box after it has
been surrendered, the safe deposit company may state that the
deceased renter had previously rented the box and that the box
was surrendered because it was empty.
new text end

new text begin (j) new text end The safe deposit company need not ascertain the truth
of any statement in the affidavit required to be furnished under
this subdivision and when acting in reliance upon an affidavit,
it is discharged as if it dealt with the personal representative
of the lessee. The safe deposit company is not responsible for
the adequacy of the description of any property included in an
inventory of the contents of a safe deposit box, nor for
conversion of the property in connection with actions performed
under this subdivision, except for conversion by intentional
acts of the company or its employees, directors, officers, or
agents. If the safe deposit company is not satisfied that the
requirements of this subdivision have been met, it may decline
to open the box.

deleted text begin (j) deleted text end new text begin (k) new text end No contents of a box other than a will and a
document required to facilitate the lessee's wishes regarding
body, funeral, or burial arrangements may be removed pursuant to
this subdivision. The entire contents of the box, however, may
be removed pursuant to section 524.3-1201.

Sec. 8.

new text begin [58.125] PROHIBITION ON SERVICE AS A RESIDENTIAL
MORTGAGE ORIGINATOR.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Dishonesty" means
directly or indirectly to cheat or defraud; to cheat or defraud
for monetary gain or its equivalent; or to wrongfully take
property belonging to another in violation of any criminal
statute. Dishonesty includes acts involving want of integrity,
lack of probity, or a disposition to distort, cheat, or act
deceitfully or fraudulently, and may include crimes which
federal, state, or local laws define as dishonest.
new text end

new text begin (b) "Breach of trust" means a wrongful act, use,
misappropriation, or omission with respect to any property or
fund which has been committed to a person in a fiduciary or
official capacity, or the misuse of one's official or fiduciary
position to engage in a wrongful act, use, misappropriation, or
omission.
new text end

new text begin Subd. 2. new text end

new text begin Generally. new text end

new text begin Except with the prior written
consent of the commissioner under subdivision 4, any individual,
who has been convicted of a criminal offense involving
dishonesty or a breach of trust or money laundering, or has
agreed to or entered into a pretrial diversion or similar
program in connection with a prosecution for such offense, may
not serve as a residential mortgage originator or be employed in
that capacity by a person licensed as a mortgage originator.
new text end

new text begin Subd. 3. new text end

new text begin De minimis offenses. new text end

new text begin Approval is automatically
granted and an application will not be required if the covered
offense is considered de minimis because it meets all of the
following criteria:
new text end

new text begin (1) there is only one conviction or program entry of record
for a covered offense;
new text end

new text begin (2) the offense was punishable by imprisonment for a term
of less than one year and/or a fine of less than $1,000, and the
individual did not serve time in jail;
new text end

new text begin (3) the conviction or program was entered at least five
years before the date an application would otherwise be
required; and
new text end

new text begin (4) the offense did not involve a financial institution or
residential mortgage loans.
new text end

new text begin Subd. 4. new text end

new text begin Prior consent. new text end

new text begin (a) An application for prior
consent of the commissioner under this section must be in
writing, under oath, and on a form obtained from and prescribed
by the commissioner. The following factors must be considered
by the commissioner when reviewing an application:
new text end

new text begin (1) the specific nature of the offense and the
circumstances surrounding the offense;
new text end

new text begin (2) evidence of rehabilitation since the offense;
new text end

new text begin (3) the age of the person at the time of conviction; and
new text end

new text begin (4) whether or not restitution has been made.
new text end

new text begin (b) The receipt by an individual of prior consent of the
commissioner under this section must not be construed as
imposing upon an employer an affirmative obligation to employ
that individual in any capacity. Nothing in this section
precludes an employer from denying employment based upon the
existence of a criminal offense specified in subdivision 2 or
for any other lawful reason.
new text end

Sec. 9.

Minnesota Statutes 2004, section 58.16,
subdivision 4, is amended to read:

Subd. 4.

Trust account.

The residential mortgage
originator shall deposit in a trust account within three
business days all fees received before the time a loan is
actually funded. The trust account must be in a financial
institution located within the state of Minnesota new text begin , new text end and new text begin , with
respect to advance fees, the account new text end must be controlled by an
unaffiliated accountant, attorney, or bank deleted text begin officer or employee deleted text end .

Sec. 10.

Minnesota Statutes 2004, section 60A.13,
subdivision 5, is amended to read:

Subd. 5.

Renewal license deleted text begin based on approved statement deleted text end .

deleted text begin Upon the approval of the statement the commissioner shall issue
a renewal license for the succeeding year beginning June first.
Any license to a company or its agent, issued after the approval
of the statement, shall expire May 31 of the year
following. deleted text end new text begin The license issued by the commissioner is perpetual
and is considered renewed annually on June 1 upon payment of the
renewal license fee, the annual filing fee, and all other fees
required by section 60A.14.
new text end

Sec. 11.

Minnesota Statutes 2004, section 64B.30, is
amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Voluntary dissolution. new text end

new text begin Upon application to the
commissioner, a domestic society may request that it be
dissolved and that its existence be terminated. Such
application shall demonstrate that the applicant has satisfied
its members' policy obligations or that it has transferred such
obligations to another society, domestic or foreign, by means of
assumption or bulk reinsurance or otherwise, that the
applicant's supreme governing body has approved such termination
and dissolution and that the application includes such other
information that the commissioner requires. Any limitation in
section 64B.13 related to reinsurance by a domestic society with
another society shall not apply to reinsurance entered into in
conjunction with the transfer of member policy obligations as a
part of a voluntary dissolution. Upon the approval of the
application by the commissioner, the society shall be deemed
dissolved and its existence terminated upon the date set forth
in the application.
new text end

Sec. 12.

Minnesota Statutes 2004, section 82.17,
subdivision 10, is amended to read:

Subd. 10.

Loan broker.

"Loan broker" means a licensed
real estate broker or salesperson who, for another and for deleted text begin a
commission, fee, or other valuable consideration deleted text end new text begin an advance fee
new text end or with the intention or expectation of receiving the same,
directly or indirectly, negotiates or offers or attempts to
negotiate a loan secured or to be secured by a mortgage or other
encumbrance on real estate, or represents himself or herself or
otherwise holds himself or herself out as a licensed real estate
broker or salesperson, either in connection with any transaction
in which he or she directly or indirectly negotiates or offers
or attempts to negotiate a loan, or in connection with the
conduct of his or her ordinary business activities as a loan
broker.

"Loan broker" does not include a licensed real estate
broker or salesperson who, in the course of representing a
purchaser or seller of real estate, incidentally assists the
purchaser or seller in obtaining financing for the real property
in question if the licensee does not receive a separate
commission, fee, or other valuable consideration for this
service.

new text begin For the purposes of this subdivision, an "advance fee"
means a commission, fee, charge, or compensation of any kind
paid before the closing of a loan, that is intended in whole or
in part as payment for finding or attempting to find a loan for
a borrower. Advance fee does not include pass-through fees or
commitment or extended lock fees or other fees as determined by
the commissioner.
new text end

Sec. 13.

Minnesota Statutes 2004, section 82.17,
subdivision 18, is amended to read:

Subd. 18.

Real estate broker; broker.

"Real estate
broker" or "broker" means any person who:

(a) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving
the same directly or indirectly lists, sells, exchanges, buys or
rents, manages, or offers or attempts to negotiate a sale,
option, exchange, purchase or rental of an interest or estate in
real estate, or advertises or holds out as engaged in these
activities;

(b) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving
the same directly or indirectly negotiates or offers or attempts
to negotiate a loan, secured or to be secured by a mortgage or
other encumbrance on real estate, which is not a residential
mortgage loan as defined by section 58.02, subdivision 18;

(c) "real estate broker" or "broker" as set forth in clause
(b) shall not apply to the originating, making, processing,
selling, or servicing of a loan in connection with the deleted text begin broker's
deleted text end ordinary business activities deleted text begin by deleted text end new text begin of new text end a mortgagee, lender, or
servicer approved or certified by the secretary of Housing and
Urban Development, or approved or certified by the administrator
of Veterans Affairs, or approved or certified by the
administrator of the Farmers Home Administration, or approved deleted text begin or
certified deleted text end new text begin as a multifamily seller/servicer new text end by the Federal Home
Loan Mortgage Corporation, or new text begin as a multifamily partner new text end approved
deleted text begin or certified deleted text end by the Federal National Mortgage Association;

(d) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving
the same directly or indirectly lists, sells, exchanges, buys,
rents, manages, offers or attempts to negotiate a sale, option,
exchange, purchase or rental of any business opportunity or
business, or its good will, inventory, or fixtures, or any
interest therein;

(e) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving
the same directly or indirectly offers, sells or attempts to
negotiate the sale of property that is subject to the
registration requirements of chapter 83, concerning subdivided
land;

(f) for another and for commission, fee, or other valuable
consideration or with the intention or expectation of receiving
the same, promotes the sale of real estate by advertising it in
a publication issued primarily for this purpose, if the person:

(1) negotiates on behalf of any party to a transaction;

(2) disseminates any information regarding the property to
any party or potential party to a transaction subsequent to the
publication of the advertisement, except that in response to an
initial inquiry from a potential purchaser, the person may
forward additional written information regarding the property
which has been prepared prior to the publication by the seller
or broker or a representative of either;

(3) counsels, advises, or offers suggestions to the seller
or a representative of the seller with regard to the marketing,
offer, sale, or lease of the real estate, whether prior to or
subsequent to the publication of the advertisement;

(4) counsels, advises, or offers suggestions to a potential
buyer or a representative of the seller with regard to the
purchase or rental of any advertised real estate; or

(5) engages in any other activity otherwise subject to
licensure under this chapter;

(g) engages wholly or in part in the business of selling
real estate to the extent that a pattern of real estate sales is
established, whether or not the real estate is owned by the
person. A person shall be presumed to be engaged in the
business of selling real estate if the person engages as
principal in five or more transactions during any 12-month
period, unless the person is represented by a licensed real
estate broker or salesperson.

Sec. 14.

Minnesota Statutes 2004, section 82.36,
subdivision 4, is amended to read:

Subd. 4.

Escrow account.

The loan broker shall deposit
in an escrow account within 48 hours all fees received prior to
the time a loan is actually funded. The escrow account shall be
in a bank located within the state of Minnesota and shall be
controlled by an unaffiliated accountant, lawyer, or bank
deleted text begin officer or employee deleted text end .

Sec. 15.

Minnesota Statutes 2004, section 82.41,
subdivision 13, is amended to read:

Subd. 13.

Fraudulent, deceptive, and dishonest
practices.

(a) [PROHIBITIONS.] For the purposes of section
deleted text begin 82.40 deleted text end new text begin 82.35 new text end , subdivision 1, clause (b), the following acts and
practices constitute fraudulent, deceptive, or dishonest
practices:

(1) act on behalf of more than one party to a transaction
without the knowledge and consent of all parties;

(2) act in the dual capacity of licensee and undisclosed
principal in any transaction;

(3) receive funds while acting as principal which funds
would constitute trust funds if received by a licensee acting as
an agent, unless the funds are placed in a trust account. Funds
need not be placed in a trust account if a written agreement
signed by all parties to the transaction specifies a different
disposition of the funds, in accordance with section 82.35,
subdivision 1;

(4) violate any state or federal law concerning
discrimination intended to protect the rights of purchasers or
renters of real estate;

(5) make a material misstatement in an application for a
license or in any information furnished to the commissioner;

(6) procure or attempt to procure a real estate license for
himself or herself or any person by fraud, misrepresentation, or
deceit;

(7) represent membership in any real estate-related
organization in which the licensee is not a member;

(8) advertise in any manner that is misleading or
inaccurate with respect to properties, terms, values, policies,
or services conducted by the licensee;

(9) make any material misrepresentation or permit or allow
another to make any material misrepresentation;

(10) make any false or misleading statements, or permit or
allow another to make any false or misleading statements, of a
character likely to influence, persuade, or induce the
consummation of a transaction contemplated by this chapter;

(11) fail within a reasonable time to account for or remit
any money coming into the licensee's possession which belongs to
another;

(12) commingle with his or her own money or property trust
funds or any other money or property of another held by the
licensee;

(13) demand from a seller a commission to compensation
which the licensee is not entitled, knowing that he or she is
not entitled to the commission compensation;

(14) pay or give money or goods of value to an unlicensed
person for any assistance or information relating to the
procurement by a licensee of a listing of a property or of a
prospective buyer of a property (this item does not apply to
money or goods paid or given to the parties to the transaction);

(15) fail to maintain a trust account at all times, as
provided by law;

(16) engage, with respect to the offer, sale, or rental of
real estate, in an anticompetitive activity;

(17) represent on advertisements, cards, signs, circulars,
letterheads, or in any other manner, that he or she is engaged
in the business of financial planning unless he or she provides
a disclosure document to the client. The document must be
signed by the client and a copy must be left with the client.
The disclosure document must contain the following:

(i) the basis of fees, commissions, or other compensation
received by him or her in connection with rendering of financial
planning services or financial counseling or advice in the
following language:

"My compensation may be based on the following:

(a) ... commissions generated from the products I sell you;

(b) ... fees; or

(c) ... a combination of (a) and (b). [Comments]";

(ii) the name and address of any company or firm that
supplies the financial services or products offered or sold by
him or her in the following language:

"I am authorized to offer or sell products and/or services
issued by or through the following firm(s):

[List]

The products will be traded, distributed, or placed through
the clearing/trading firm(s) of:

[List]";

(iii) the license(s) held by the person under this chapter
or chapter 60A or 80A in the following language:

"I am licensed in Minnesota as a(n):

(a) ... insurance agent;

(b) ... securities agent or broker/dealer;

(c) ... real estate broker or salesperson;

(d) ... investment adviser"; and

(iv) the specific identity of any financial products or
services, by category, for example mutual funds, stocks, or
limited partnerships, the person is authorized to offer or sell
in the following language:

"The license(s) entitles me to offer and sell the following
products and/or services:

(a) ... securities, specifically the following: [List];

(b) ... real property;

(c) ... insurance; and

(d) ... other: [List]."

(b) [DETERMINING VIOLATION.] A licensee shall be deemed to
have violated this section if the licensee has been found to
have violated sections 325D.49 to 325D.66, by a final decision
or order of a court of competent jurisdiction.

(c) [COMMISSIONER'S AUTHORITY.] Nothing in this section
limits the authority of the commissioner to take actions against
a licensee for fraudulent, deceptive, or dishonest practices not
specifically described in this section.

Sec. 16.

Minnesota Statutes 2004, section 299A.61,
subdivision 3, is amended to read:

Subd. 3.

Limit on liability of financial institution.

A
financial institution, including its employees or company
agents, that provides or reasonably attempts to
provide new text begin information regarding new text end stolen, forged, or
fraudulent deleted text begin check information deleted text end new text begin checks new text end for use by the crime alert
network, check verification services, consumer reporting
agencies, new text begin a banking industry antifraud database consistent with
federal privacy law, new text end or by law enforcement agencies that are
investigating a crime is not liable to any person for disclosing
the information, provided that the financial institution is
acting in good faith.

Sec. 17.

Minnesota Statutes 2004, section 325F.69, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Deceptive use of financial institution name. new text end

new text begin No
person shall include the name, trade name, logo, or tagline of a
financial institution as defined in section 49.01, subdivision
2, in a written solicitation for financial services directed to
a customer who has obtained a loan from the financial
institution without written permission from the financial
institution, unless the solicitation clearly and conspicuously
states that the person is not sponsored by or affiliated with
the financial institution, which shall be identified by name.
This statement shall be made in close proximity to, and in the
same or larger font size as, the first and most prominent use or
uses of the name, trade name, logo, or tagline in the
solicitation, including on an envelope or through an envelope
window containing the solicitation. For purposes of this
section, the term "financial institution" includes a financial
institution's affiliates and subsidiaries. This subdivision
shall not prohibit the use of a financial institution name,
trade name, logo, or tagline of a financial institution if the
use of that name is part of a fair and accurate comparison of
like products or services.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 52.062, subdivision 3,
is repealed.
new text end

new text begin (b) Minnesota Rules, part 2675.2610, subpart 5, is repealed.
new text end

Sec. 19. new text begin EFFECTIVE DATE.
new text end

new text begin Section 8 is effective January 1, 2006.
new text end