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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 252--H.F.No. 610
           An act relating to financial institutions; industrial 
          loan and thrift companies; regulated loans; enlarging 
          the group of institutions which may utilize electronic 
          fund transfer facilities; modifying the capital and 
          reserve limitation on loans by industrial loan and 
          thrift companies; permitting loan and thrifts and 
          regulated lenders to take discount points in certain 
          circumstances; authorizing loan and thrifts to receive 
          savings accounts and savings deposits subject to 
          certain prescribed conditions; regulating loan 
          splitting; eliminating the receipt requirement for 
          money orders; standardizing certain penalties; 
          excepting loan and thrifts and regulated lenders from 
          the licensing requirements for real estate brokers and 
          salespersons; amending Minnesota Statutes 1982, 
          sections 47.61, subdivision 4; 47.64, subdivision 1; 
          48.196; 53.03, subdivision 5; 53.04, subdivisions 3a 
          and 5; 53.05; 53.07, subdivision 2; 53.10; 56.131, 
          subdivision 3, and by adding a subdivision; 56.14; 
          56.19, subdivision 1; 80A.15, subdivision 1; and 
          82.18; repealing Minnesota Statutes 1982, section 
          56.19, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 47.61, 
subdivision 4, is amended to read: 
    Subd. 4.  "Financial institution" means a national banking 
association, federal savings and loan association, or federal 
credit union having its main office in this state, or a bank, 
savings bank, savings and loan association, or credit union, 
industrial loan and thrift company, or regulated lender under 
chapter 56 established and operating under the laws of this 
state.  
     Sec. 2.  Minnesota Statutes 1982, section 47.64, 
subdivision 1, is amended to read:  
    Subdivision 1.  Any person establishing and maintaining an 
electronic financial terminal for use by one type of financial 
institution shall, upon written request, make its services 
available to any requesting financial institution of similar 
type on a fair, equitable and nondiscriminatory basis approved 
by the commissioner.  A financial institution requesting use of 
an electronic financial terminal shall be permitted its use only 
if the financial institution conforms to reasonable technical 
operation standards which have been established by the 
electronic financial terminal provider as approved by the 
commissioner.  For purposes of this subdivision, the types of 
financial institutions are:  (a) commercial banks and mutual 
savings banks; (b) credit unions, industrial loan and thrift 
companies, and regulated lenders under chapter 56; and (c) 
savings and loan associations.  The services of an electronic 
financial terminal may be made available to any type of 
financial institution.  After March 1, 1979, or earlier if 
determined by the commissioner to be technically feasible, an 
electronic financial terminal which is used by or made available 
to one type of financial institution shall be made available, 
upon request, to other types of financial institutions on a 
fair, equitable and nondiscriminatory basis as approved by the 
commissioner.  The charges required to be paid to any person 
establishing and maintaining an electronic financial terminal 
shall be related to an equitable proportion of the direct costs 
of establishing, operating, and maintaining the terminal plus a 
reasonable return on those costs to the owner of the terminal.  
The charges may provide for amortization of development costs 
and capital expenditures over a reasonable period of time. 
    Sec. 3.  Minnesota Statutes 1982, section 48.196, is 
amended to read: 
    48.196 [PENALTY FOR USURIOUS INTEREST CHARGED BY BANKS AND 
SAVINGS BANKS.] 
    The taking, receiving, reserving or charging by a lender of 
a rate of interest greater than is allowed by state law shall be 
deemed a forfeiture of the entire interest which the note, bill, 
or other evidence of debt carries with it, or which has been 
agreed to be paid thereon.  In case the greater rate of interest 
has been paid, the person paying it, or his legal 
representatives, may recover, in an action in the nature of an 
action of debt, twice the amount of the interest thus paid from 
the lender taking or receiving the interest, if the action is 
commenced within two years from the time the usurious 
transaction occurred.  For purposes of this section, the term 
"lender" means a bank or savings bank organized under the laws 
of this state, a federally chartered savings and loan 
association, a savings association organized under chapter 51A, 
a federally chartered credit union, a credit union organized 
under chapter 52, an industrial loan and thrift company 
organized under chapter 53, a regulated lender licensed under 
chapter 56, or a mortgagee or lender approved or certified by 
the secretary of housing and urban development or approved or 
certified by the administrator of veterans affairs.  
    Sec. 4.  Minnesota Statutes 1982, section 53.03, 
subdivision 5, is amended to read:  
    Subd. 5.  [PLACE OF BUSINESS.] Not more than one place of 
business shall may be maintained under any certificate of 
authorization issued subsequent to the enactment of Laws 1943, 
chapter 67, pursuant to the provisions of this chapter, but the 
department of commerce may issue more than one certificate of 
authorization to the same corporation upon compliance with all 
the provisions of this chapter governing an original issuance of 
a certificate of authorization.  Where If a corporation has been 
issued more than one certificate of authorization, such the 
corporation shall allocate a portion of contributed capital to 
each office for which such a certificate has been issued, in 
order to comply with the capital requirements of section 53.02 
and section 53.05, clauses clause (2) and (3), which sections 
shall be applicable to each such office and the capital 
allocated thereto in the same manner as if each certificate had 
been issued to a separate corporation.  Each additional 
certificate of authorization issued pursuant to the provisions 
of this subdivision shall must be filed with the secretary of 
state and the county recorder of the county in which the 
corporation is authorized to do business thereunder.  Any such A 
corporation may change one or more of its locations upon the 
written approval of the commissioner of banks. 
    Sec. 5.  Minnesota Statutes 1982, section 53.04, 
subdivision 3a, is amended to read: 
    Subd. 3a.  (a) The right to make loans, secured or 
unsecured, at the rates and on the terms and other conditions 
permitted licensees under chapter 56.  The right to extend 
credit or lend money and to collect and receive charges therefor 
as provided by chapter 334, or in lieu thereof to charge, 
collect, and receive interest at the rate of 21.75 percent per 
annum.  The provisions of sections 47.20 and 47.21 do not apply 
to loans made under this section, except as specifically 
provided in this subdivision.  Nothing in this subdivision shall 
be deemed to supersede, repeal, or amend any provision of 
section 53.05.  A licensee making a loan under this chapter 
secured by a lien on real estate shall comply with the 
requirements of section 47.20, subdivision 8.  
    (b) Loans made under this section at a rate of interest not 
in excess of that provided for in paragraph (a) may be secured 
by real or personal property, or both.  If the proceeds of a 
loan made after August 1, 1984 are used in whole or in part to 
satisfy the balance owed on a contract for deed, the rate of 
interest charged on the loan shall not exceed the rate provided 
in section 47.20, subdivision 4a.  If the proceeds of a loan 
secured by a first lien on the borrower's primary residence are 
used to finance the purchase of the borrower's primary 
residence, the loan must comply with the provisions of section 
47.20.  
    (c) A loan made under this section that is secured by real 
estate and that is in a principal amount of $7,500 or more and a 
maturity of 60 months or more may contain a provision permitting 
discount points, if the loan does not provide a loan yield in 
excess of the maximum rate of interest permitted by this 
subdivision.  Loan yield means the annual rate of return 
obtained by a licensee computed as the annual percentage rate is 
computed under Federal Regulation Z.  If the loan is prepaid in 
full, the licensee must make a refund to the borrower to the 
extent that the loan yield will exceed the maximum rate of 
interest provided by this subdivision when the prepayment is 
taken into account.  
    Sec. 6.  Minnesota Statutes 1982, section 53.04, 
subdivision 5, is amended to read: 
    Subd. 5.  The right, with the consent of the department of 
commerce, to (1) sell and issue for investment certificates of 
indebtedness, under any descriptive name, which may bear 
interest, if any, as their terms provide, and which may require 
the payment to the company of amounts, from time to time as 
their terms provide, and permit the withdrawal of amounts paid 
on them, in whole or in part, from time to time, and the credit 
of amounts thereon upon conditions set forth therein; and (2) 
receive savings accounts or savings deposits.  No certificate of 
indebtedness shall have a surrender value which is less than the 
total amount paid to the company therefor. 
    Sec. 7.  Minnesota Statutes 1982, section 53.05, is amended 
to read: 
    53.05 [POWERS, LIMITATION.] 
    No industrial loan and thrift company shall have power to 
may do any of the following: 
    (1) To carry commercial or demand banking accounts; to use 
the word "bank" or "banking" in its corporate name; to receive 
savings accounts or deposits or operate as a savings bank; 
    (2) To have outstanding at any one time certificates of 
indebtedness, savings accounts, and savings deposits, exclusive 
of those held by the company, as security for loans made by it 
of more than seven times the sum of the contributed capital and 
appropriated reserves of the company; 
    (3) To lend money in excess of ten percent of its 
contributed capital and appropriated reserves to any person 
primarily liable; provided, however, if a loan has been made to 
any one person primarily liable and payments have been made on 
the certificate of indebtedness securing it, the amount of such 
payments may be added to the limitation stated in this clause 
for the purpose of determining whether additional loans may be 
made to that person;  
    (4) To accept trusts or act as guardian, administrator, or 
judicial trustee in any form; or 
    (5) To (4) deposit any of its funds in any banking 
corporation, unless that corporation has been designated by vote 
of a majority of directors or of the executive committee present 
at a meeting duly called, at which a quorum was in attendance.;  
    (6) To (5) change any allocation of capital made pursuant 
to section 53.03 or to reduce or withdraw in any way any portion 
of the contributed capital and appropriated reserves without 
prior written approval of the commissioner of banks.;  
    (7) To (6) take any instrument in which blanks are left to 
be filled in after execution; or 
    (7) lend money in excess of ten percent of its contributed 
capital and appropriated reserves to a person primarily liable. 
"Contributed capital and appropriated reserves" means the total 
of the company's contributed capital and appropriated reserves 
at all its authorized locations.  
    If a loan has been made to a person primarily liable and 
payments have been made on a certificate of indebtedness 
securing it, the amount of the payments may be added to the 
limitation contained in this clause for the purpose of 
determining whether additional loans may be made to that person. 
    Sec. 8.  Minnesota Statutes 1982, section 53.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [TEMPORARY RESERVE MINIMUM.] Until an industrial 
loan and thrift company obtains a commitment for insurance or 
guarantee of accounts acceptable to the commissioner as required 
by section 53.10, it shall establish a minimum reserve against 
the certificates of indebtedness, savings accounts, and savings 
deposits described in section 53.04, subdivision 5, of not less 
than ten percent of the amount of indebtedness thus created.  
Three percent of this indebtedness shall be in cash in the 
actual possession of the industrial loan company or on demand 
deposit in approved banks of this state, and seven percent of 
the total indebtedness may be in bonds admissible for investment 
by mutual savings banks under the laws of this state. 
    Sec. 9.  Minnesota Statutes 1982, section 53.10, is amended 
to read: 
    53.10 [MANDATORY INSURANCE OR GUARANTEE OF CERTIFICATES 
HELD FOR INVESTMENT.] 
    Subdivision 1.  [REQUIREMENT.] Not later than July 1, 1983, 
every industrial loan and thrift company operating under this 
chapter with consent or holding a certificate of authorization, 
which includes the right to sell and issue for investment 
certificates of indebtedness, savings accounts, and savings 
deposits, other than those to be pledged as security for a loan 
made contemporaneously therewith, shall obtain a commitment for 
insurance or guarantee of the certificates, accounts, or 
deposits by or through an insurance company or guarantee fund 
acceptable to the commissioner of banks.  The insurance or 
guarantee shall provide for the redemption of the investment of 
certificate, account, or deposit holders in the event of 
liquidation, insolvency or bankruptcy of the industrial loan and 
thrift company.  The amount of insurance or guarantee benefit to 
each certificate, account, or deposit holder, as an individual 
or multiparty account, shall at all times be in full force and 
equal to the lesser of the industrial loan and thrift company's 
liability under a certificate, account, or deposit or $100,000.  
For purposes of this section, an insurance company or guarantee 
fund includes an insurance company authorized to do business in 
this state, an insurance or guarantee fund organized under the 
laws of the United States, this state or any other state with 
the expressed purpose or authority to guarantee the accounts of 
industrial loan and thrift companies or any other person who 
contracts with industrial loan and thrift companies to guarantee 
accounts. 
    Subd. 2.  The commissioner of banks shall grant additional 
time or times to obtain the commitment for insurance or 
guarantee upon satisfactory evidence that the industrial loan 
and thrift company has made or is making a substantial effort to 
achieve the conditions precedent to issuance of the commitment.  
Additional time or times shall not extend later than July 1, 
1985.  
    Subd. 3.  No industrial loan and thrift company shall 
hereafter be granted consent, or issued a certificate of 
authorization which includes the right to issue for investment 
certificates of indebtedness, savings accounts, and savings 
deposits, other than those to be pledged as security for a loan 
made contemporaneously therewith, unless the industrial loan and 
thrift company has obtained a commitment for insurance or 
guarantee of such certificates which meets the conditions of 
subdivision 1. 
    Sec. 10.  Minnesota Statutes 1982, section 56.131, 
subdivision 3, is amended to read:  
    Subd. 3.  [SPLITTING.] No licensee shall induce or permit 
any borrower to split up or divide any loan or permit any person 
to become obligated, directly or contigently, or both, under 
more than one contract of loan for the same purpose or at the 
same time for the purpose or with the result of obtaining a 
higher rate of charge than would otherwise be permitted by this 
section.  However, if a person becomes obligated on a contract 
of loan as an accommodation party, a preceding or subsequent 
loan to that person is not a violation of this subdivision nor 
shall such loans be aggregated in determining the applicable 
rate of charge.  
    Sec. 11.  Minnesota Statutes 1982, section 56.131, is 
amended by adding a subdivision to read: 
    Subd. 6.  [DISCOUNT POINTS.] A loan made under this section 
that is secured by real estate and that is in a principal amount 
of $7,500 or more and has a maturity of 60 months or more may 
contain a provision permitting discount points, if the loan does 
not provide a loan yield in excess of the maximum rate of 
interest permitted by this section.  Loan yield means the annual 
rate of return obtained by a licensee computed as the annual 
percentage rate is computed under Federal Regulation Z.  If the 
loan is prepaid in full, the licensee must make a refund to the 
borrower to the extent that the loan yield will exceed the 
maximum rate of interest provided by this section when the 
prepayment is taken into account.  
    Sec. 12.  Minnesota Statutes 1982, section 56.14, is 
amended to read:  
    56.14 [DUTIES OF LICENSEE.] 
    Every licensee shall: 
    (1) deliver to the borrower (or if there are two or more 
borrowers to one of them) at the time any loan is made a 
statement making the disclosures and furnishing the information 
required by the federal Truth-in-Lending Act with respect to the 
contract of loan.  A copy of the loan contract may be delivered 
in lieu of a statement if it discloses the required information; 
    (2) deliver or mail to the borrower without request, a 
written receipt within 30 days following payment for each 
payment by coin, or currency, or money order made on account of 
any loan wherein charges are computed and paid on unpaid 
principal balances for the time actually outstanding, specifying 
the amount applied to charges and the amount, if any, applied to 
principal, and stating the unpaid principal balance, if any, of 
the loan; and wherein precomputed charges have been added to the 
principal of the loan specifying the amount of the payment 
applied to principal and charges combined, the amount applied to 
default or extension charges, if any, and stating the unpaid 
balance, if any, of the precomputed loan contract.  A periodic 
statement showing a payment received by mail complies with this 
clause;  
     (3) permit payment to be made in advance in any amount on 
any contract of loan at any time, but the licensee may apply the 
payment first to all charges in full at the agreed rate up to 
the date of the payment; 
     (4) upon repayment of the loan in full, mark indelibly 
every obligation and security, other than a mortgage or security 
agreement which secures a new loan to the licensee, signed by 
the borrower with the word "Paid" or "Canceled," and release any 
mortgage or security agreement which no longer secures a loan to 
the licensee, restore any pledge, and cancel and return any 
note, and any assignment given to the licensee which does not 
secure a new loan to the licensee within 20 days after the 
repayment; 
    (5) display prominently in each licensed place of business 
a full and accurate schedule, to be approved by the 
commissioner, of the charges to be made and the method of 
computing the same; furnish a copy of the contract of loan to 
any person obligated on it or who may become obligated on it at 
any time upon the request of that person; 
    (6) show in the loan contract or statement of loan the rate 
or rates of charge on which the charge in the contract is based, 
expressed in terms of rate or rates per annum.  The rate 
expression shall be printed in at least 8-point type on the loan 
statement or copy of the loan contract given to the borrower. 
    Sec. 13.  Minnesota Statutes 1982, section 56.19, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CRIMINAL PENALTY.] Any person and or the 
several members, officers, directors, agents, and employees 
thereof, who shall violate violates or participate participates 
in the violation of any of the provisions of sections 56.01, 
56.12, 56.131, 56.14, 56.17, and 56.18 shall be is guilty of a 
gross misdemeanor. 
    Sec. 14.  Minnesota Statutes 1982, section 80A.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  The following securities are exempted from 
sections 80A.08 and 80A.16: 
    (a) Any security, including a revenue obligation, issued or 
guaranteed by the United States, any state, any political 
subdivision of a state or any corporate or other instrumentality 
of one or more of the foregoing; but this exemption shall not 
include any industrial revenue bond. 
    (b) Any security issued or guaranteed by Canada, any 
Canadian province, any political subdivision of any province, 
any agency or corporate or other instrumentality of one or more 
of the foregoing, if the security is recognized as a valid 
obligation by the issuer or guarantor; but this exemption shall 
not include any revenue obligation payable solely from payments 
to be made in respect of property or money used under a lease, 
sale or loan arrangement by or for a nongovernmental industrial 
or commercial enterprise. 
    (c) Any security issued by and representing an interest in 
or a debt of, or guaranteed by, any bank organized under the 
laws of the United States, or any bank, savings institution or 
trust company organized under the laws of any state and subject 
to regulation in respect of the issuance or guarantee of its 
securities by a governmental authority of that state. 
     (d) Any security issued by and representing an interest in 
or a debt of, or guaranteed by, any federal savings and loan 
association, or any building and loan or similar association 
organized under the laws of any state and authorized to do 
business in this state. 
     (e) Any security issued or guaranteed by any federal credit 
union or any credit union, or similar association organized and 
supervised under the laws of this state. 
     (f) Any security listed or approved for listing upon notice 
of issuance on the New York Stock Exchange, the American Stock 
Exchange, the Midwest Stock Exchange, the Pacific Stock 
Exchange, or the Chicago Board Options Exchange; any other 
security of the same issuer which is of senior or substantially 
equal rank; any security called for by subscription rights or 
warrants so listed or approved; or any warrant or right to 
purchase or subscribe to any of the foregoing. 
     (g) Any commercial paper which arises out of a current 
transaction or the proceeds of which have been or are to be used 
for current transactions, and which evidences an obligation to 
pay cash within nine months of the date of issuance, exclusive 
of days of grace, or any renewal of the paper which is likewise 
limited, or any guarantee of the paper or of any renewal which 
are not advertised for sale to the general public in newspapers 
or other publications of general circulation or otherwise, or by 
radio, television or direct mailing. 
     (h) Any interest in any employee's savings, stock purchase, 
pension, profit sharing or similar benefit plan, or a 
self-employed person's retirement plan. 
     (i) Any security issued or guaranteed by any railroad, 
other common carrier or public utility which is subject to 
regulation in respect to the issuance or guarantee of its 
securities by a governmental authority of the United States. 
     (j) Any interest in a common trust fund or similar fund 
maintained by a state bank or trust company organized and 
operating under the laws of Minnesota, or a national bank 
wherever located, for the collective investment and reinvestment 
of funds contributed thereto by the bank or trust company in its 
capacity as trustee, executor, administrator, or guardian; and 
any interest in a collective investment fund or similar fund 
maintained by the bank or trust company, or in a separate 
account maintained by an insurance company, for the collective 
investment and reinvestment of funds contributed thereto by the 
bank, trust company or insurance company in its capacity as 
trustee or agent, which interest is issued in connection with an 
employee's savings, pension, profitsharing or similar benefit 
plan, or a self-employed person's retirement plan. 
     (k) Any security which meets all of the following 
conditions: 
     (1) If the issuer is not organized under the laws of the 
United States or a state, it has appointed a duly authorized 
agent in the United States for service of process and has set 
forth the name and address of the agent in its prospectus; 
     (2) A class of the issuer's securities is required to be 
and is registered under section 12 of the Securities Exchange 
Act of 1934, and has been so registered for the three years 
immediately preceding the offering date; 
     (3) Neither the issuer nor a significant subsidiary has had 
a material default during the last seven years, or for the 
period of the issuer's existence if less than seven years, in 
the payment of (i) principal, interest, dividend, or sinking 
fund installment on preferred stock or indebtedness for borrowed 
money, or (ii) rentals under leases with terms of three years or 
more; 
     (4) The issuer has had consolidated net income, before 
extraordinary items and the cumulative effect of accounting 
changes, of at least $1,000,000 in four of its last five fiscal 
years including its last fiscal year; and if the offering is of 
interest bearing securities, has had for its last fiscal year, 
net income, before deduction for income taxes and depreciation, 
of at least 1-1/2 times the issuer's annual interest expense, 
giving effect to the proposed offering and the intended use of 
the proceeds. For the purposes of this clause "last fiscal year" 
means the most recent year for which audited financial 
statements are available, provided that such statements cover a 
fiscal period ended not more than 15 months from the 
commencement of the offering; 
     (5) If the offering is of stock or shares other than 
preferred stock or shares, the securities have voting rights and 
the rights include (i) the right to have at least as many votes 
per share, and (ii) the right to vote on at least as many 
general corporate decisions, as each of the issuer's outstanding 
classes of stock or shares, except as otherwise required by law; 
and 
     (6) If the offering is of stock or shares, other than 
preferred stock or shares, the securities are owned beneficially 
or of record, on any date within six months prior to the 
commencement of the offering, by at least 1,200 persons, and on 
that date there are at least 750,000 such shares outstanding 
with an aggregate market value, based on the average bid price 
for that day, of at least $3,750,000.  In connection with the 
determination of the number of persons who are beneficial owners 
of the stock or shares of an issuer, the issuer or broker-dealer 
may rely in good faith for the purposes of this clause upon 
written information furnished by the record owners. 
    (l) Any certificate of indebtedness sold or issued for 
investment, other than a certificate of indebtedness pledged as 
a security for a loan made contemporaneously therewith, and any 
savings account or savings deposit issued, by an industrial loan 
and thrift company. 
    Sec. 15.  Minnesota Statutes 1982, section 82.18, is 
amended to read:  
    82.18 [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 acting solely as an 
incident to the practice of law, provided, however, that 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 such the building; 
    (e) any bank, trust company, savings and loan association, 
industrial loan and thrift company, regulated lender under 
chapter 56, public utility, or any 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) any person who acts as an auctioneer bonded in 
conformity with section 330.02, when he is engaged in the 
specific performance of his duties as an auctioneer; 
    (i) any person who acquires such 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, provided that if 
no more than 25 such transactions occur in any 12-month period 
and that the person complies with section 82.24; 
    (j) any person who offers to sell or sells an interest or 
estate in real estate which is a security registered pursuant to 
chapter 80A, when acting solely as an incident to the sale of 
such those securities; 
    (k) 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; 
    (l) 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. 
    Sec. 16.  [REPEALER.] 
    Minnesota Statutes, section 56.19, subdivision 2, is 
repealed.  
    Sec. 17.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved June 1, 1983