Office of the Revisor of Statutes
Minnesota Session Laws - 1985, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1985
CHAPTER 129-S.F.No. 661
An act relating to commerce; regulating membership
camping; prescribing the powers and duties of the
commissioner; proposing coding for new law as
Minnesota Statutes, chapter 82A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [82A.01] [CITATION.]
This chapter may be cited as the "membership camping
practices act."
Sec. 2. [82A.02] [DEFINITIONS.]
Subdivision 1. [ADVERTISEMENT OR ADVERTISING.]
"Advertisement" or "advertising" means any written or printed
communication or any communication transmitted on radio,
television, electronic means, or similar communications media
other than telephone, published in connection with the offer or
sale of membership camping contracts or to induce prospective
purchasers to visit or attend an offer or sales presentation.
Subd. 2. [AMENITY.] "Amenity" means any major recreational
building, swimming pool, utility serviced camping sites, or
similar facility which is represented as available for use by
purchasers now or in the future. "Amenity" does not include a
sportscourt or other minor facility.
Subd. 3. [AFFILIATE.] "Affiliate" of another person means
any person directly or indirectly controlling, controlled by, or
under common control with the other person.
Subd. 4. [BLANKET ENCUMBRANCE.] "Blanket encumbrance"
means any mortgage, deed of trust, option to purchase, vendor's
lien or interest under a contract or agreement of sale, judgment
lien, federal or state tax lien, or any other material lien or
encumbrance which secures or evidences the obligation to pay
money or to sell or convey any campground located in this state,
or any portion thereof, made available to purchasers by the
membership camping operator, and which authorizes, permits, or
requires the foreclosure or other disposition of the
campground. "Blanket encumbrance" also includes the lessor's
interest in a lease of a campground which is located in this
state, or any portion thereof, and which is made available to
purchasers by a membership camping operator. "Blanket
encumbrance" does not include a lien for taxes or assessments
levied by any public authority which are not yet due and payable.
Subd. 5. [BROKER.] "Broker" means a person who, for a fee
or other valuable consideration, resells a membership camping
contract to a new purchaser on behalf of a prior purchaser or
who engages in the business of buying and selling membership
camping contracts. "Broker" does not include a membership
camping operator or a licensed salesperson acting on behalf of a
membership camping operator or a licensed broker.
Subd. 6. [CAMPGROUND.] "Campground" means real property
owned or operated by a membership camping operator which is
available for use by purchasers of membership camping
contracts. Campground does not include:
(1) a recreational camping area as defined by section
327.14, subdivision 8, if the operator of the recreational
camping area does not offer or sell membership camping
contracts, but rather rents or licenses camping sites on the
recreational camping area for a per use fee; or
(2) a manufactured home park as defined in section 327.14,
subdivision 3.
Subd. 7. [CAMPING SITE.] "Camping site" means a space on a
campground designed and promoted for the purpose of locating a
trailer, tent, tent trailer, pickup camper, or other similar
device used for camping.
Subd. 8. [COMMISSIONER.] "Commissioner" means the
commissioner of commerce of the state of Minnesota or his or her
authorized delegate.
Subd. 9. [CONTROLLING PERSON.] "Controlling person" of a
membership camping operator means each director and officer and
each owner of 25 percent or more of stock of the operator, if
the operator is a corporation; and each general partner and each
owner of 25 percent or more of the partnership or other
interests, if the operator is a general or limited partnership
or other person doing business as a membership camping operator.
Subd. 10. [MEMBERSHIP CAMPING CONTRACT.] "Membership
camping contract" means an agreement offered or sold within this
state evidencing a purchaser's right or license to use for more
than three years a campground owned or operated by a membership
camping operator and includes a membership which provides for
this use.
Subd. 11. [MEMBERSHIP CAMPING OPERATOR.] "Membership
camping operator" or "operator" means any person, other than one
that is tax exempt under section 501(c)(3) of the Internal
Revenue Code of 1954, as amended, that owns or operates a
campground and offers or sells membership camping contracts paid
for by a fee or periodic payments and has as one of its purposes
camping or outdoor recreation including use of camping sites by
purchasers. "Membership camping operator" does not include any
person who engages in the business of arranging and selling
reciprocal programs except to the extent such person owns or
operates campgrounds.
Subd. 12. [NONDISTURBANCE AGREEMENT.] "Nondisturbance
agreement" means any instrument by which the holder of a blanket
encumbrance agrees that:
(1) its rights in any campground located in this state made
available to purchasers by the membership camping operator shall
be subordinate to the rights of purchasers;
(2) the holder and all successors and assigns, and any
person who acquires a campground located in this state through
foreclosure or by deed in lieu of foreclosure of the blanket
encumbrance, or by default or cancellation of a lease shall take
the property subject to the rights of purchasers; and
(3) the holder or any successor acquiring a campground
located in this state through the blanket encumbrance shall not
use or cause the campground to be used in a manner which would
materially prevent the purchasers from using or occupying the
campground in the manner contemplated by the purchasers'
membership camping contract; provided, however, the holder shall
have no obligation or liability to assume the responsibilities
or obligations of the membership camping operator under the
membership camping contract.
The agreement may be in any form or language that
reasonably evidences the foregoing.
Subd. 13. [OFFER.] "Offer" means every inducement,
solicitation, or attempt to encourage a person to acquire a
membership camping contract.
Subd. 14. [OWN, OWNED, OR OWNERSHIP.] "Own," "owned," or
"ownership" means to hold title, either legal or equitable, in
real property.
Subd. 15. [PERSON.] "Person" means an individual,
corporation, business trust, estate, trust, partnership,
unincorporated association, two or more of any of the foregoing
having a joint or common interest, or any other legal or
commercial entity.
Subd. 16. [PURCHASER.] "Purchaser" means a person who
enters into a membership camping contract with a membership
camping operator and obtains the right to use the campground
owned or operated by the membership camping operator.
Subd. 17. [RECIPROCAL PROGRAM.] "Reciprocal program" means
any arrangements allowing purchasers to use campgrounds owned or
operated by persons other than the membership camping operator
with whom the purchaser has entered into a membership camping
contract.
Subd. 18. [SALE OR SELL.] "Sale or sell" means entering
into, or other disposition of, a membership camping contract for
value. "Value" does not include any fee charged by a membership
camping operator to offset the reasonable costs of transfer of a
membership camping contract from an existing purchaser to a new
purchaser.
Subd. 19. [SALESPERSON.] "Salesperson" means an
individual, other than a membership camping operator or broker,
who offers or sells membership camping contracts, but does not
include individuals who refer persons without receiving
compensation of more than $150 per referral. The limitation of
$150 per referral imposed in this subdivision herein shall
increase each year by an amount equal to the increase in the
United States city average consumer price index for all urban
consumers issued by the United States Bureau of Labor Statistics
or comparable index, should that be discontinued.
Sec. 3. [82A.03] [REGISTRATION REQUIREMENT.]
It is unlawful for any person to offer or sell a membership
camping contract in this state unless:
(1) the membership camping contract is registered in
accordance with the provisions of this chapter; or
(2) the membership camping contract or the transaction is
exempted under section 82A.06.
Sec. 4. [82A.04] [APPLICATION FOR REGISTRATION.]
Subdivision 1. [FILING FEE.] A filing fee of $500 shall
accompany the application for registration of membership camping
contracts.
Subd. 2. [APPLICATION CONTENTS.] The application for
registration shall include:
(1) an irrevocable appointment of the commissioner to
receive service of any lawful process as required by section
82A.22, subdivision 1;
(2) the membership camping operator's name and the address
of its principal place of business, the form, date of
organization, and jurisdiction of its organization; and the name
and address of each of its offices in this state;
(3) a copy of the membership camping operator's articles of
incorporation, partnership agreement, or joint venture agreement
as contemplated or currently in effect;
(4) the name, address, and principal occupation for the
past five years of the membership camping operator and of each
controlling person of the membership camping operator, and the
extent and nature of each such person's interest in the
membership camping operator as of a specified date within 30
days prior to the filing of the application;
(5) a statement indicating whether or not the membership
camping operator, or any of the persons identified in clause
(4), within the past ten years has been:
(i) convicted of a felony; or
(ii) enjoined or received any adverse administrative order
relating to the sale of securities, land, or campgrounds or
based on violations of any consumer protection statutes. If any
of the above has occurred, the name of the person involved, the
jurisdiction, offense, and date of the offense shall be listed;
(6) a legal description of each campground owned or
operated in this state by the membership camping operator which
is represented to be available for use by purchasers, and a map
or maps showing the location of all campgrounds, wherever
located, which are owned or operated by the membership camping
operator and represented to be available for use by purchasers,
and a statement identifying the existing amenities at each such
campground and the planned amenities represented as to be
available for use by purchasers in the future at each such
campground;
(7) the states or jurisdictions in which an application for
registration or similar document has been filed by the
membership camping operator pursuant to any statute similar to
this chapter regulating membership camping contracts and any
adverse order, judgment, or decree entered against the operator
in connection with membership camping contracts by any
regulatory authority in any jurisdiction or by any court;
(8) a statement of the condition of the title to the
campground owned or operated in this state by the membership
camping operator and represented to be available for use by
purchasers, including all encumbrances, deed restrictions, and
covenants applicable thereto with data as to recording, as of a
specified date within 30 days prior to the date of application,
by a title opinion of a licensed attorney, by a title insurance
policy, naming the operator or lender as beneficiaries and
issued by an insurance company authorized to do business in this
state, or by any evidence of title acceptable to the
commissioner;
(9) copies of the instruments by which the membership
camping operator's interest in the campgrounds in this state was
acquired;
(10) copies of all recorded or unrecorded instruments,
known to the membership campground operator, that evidence
blanket encumbrances that materially adversely affect the
campgrounds in this state:
(11) if there is a blanket encumbrance which materially
adversely affects the campgrounds located in this state, a legal
description of the encumbrance, and a description of the steps
taken to protect purchasers, in accordance with section 82A.14,
clause (1), in case of failure to discharge the lien or
encumbrance;
(12) evidence showing compliance with the zoning and other
applicable environmental or land use laws, ordinances, and
regulations affecting the use of the campgrounds located in this
state;
(13) a statement of the existing and planned provisions for
the following with respect to campgrounds located in this state:
(i) purchasers' access to the campgrounds;
(ii) the availability of sewage disposal facilities and
other public utilities, including but not limited to water,
electricity, gas, and telephone facilities in the campgrounds;
(iii) the proximity of community fire and police protection;
(iv) a statement of the amenities which will be represented
to purchasers as guaranteed to be constructed or installed,
whether the operator will be responsible for their cost,
installation and maintenance and an estimated cost of and
schedule for completion of the same; provided that the estimated
completion dates need not be more precise than the year in which
completion is estimated to occur, and may be extended for the
period of any delays caused by or deferred due to the occurrence
of events such as acts of God, strikes, and other causes outside
the reasonable control of the membership camping operator; and
assurance that such amenities will be completed by filing a bond
or irrevocable letter of credit, depositing funds in an escrow
account, or such other provision as the commissioner may by
order allow. The amount of the bond or escrow account shall be
reduced monthly in proportion to the amount paid for completion
of the amenities during such period. The bond, letter of
credit, or escrow account shall be issued or held by a bank or
insurance or surety company authorized to do business in this
state;
(v) a statement of the amenities to be represented to
purchasers as planned for construction and installation, but not
guaranteed, whether the operator will be responsible for their
costs, installation, and maintenance, and an estimated cost of
and schedule for completion of the same; provided that the
estimated completion dates need not be more precise than the
year in which completion is estimated to occur and may be
extended for the period of any delays caused by or deferred due
to the occurrence of events such as acts of God, strikes, and
other causes outside the reasonable control of the membership
camping operator.
(14) a copy of each item of advertising materials which has
been prepared for public distribution in this state after the
effective date of this act. Advertising material for off-site
distribution which is pictorial in nature, other than site and
conceptual plans which are labeled as such, shall be limited to
a depiction of the actual on-site condition of the campgrounds
or other areas that are material to the offer or sale of
membership camping contracts pursuant to this registration; site
and conceptual plans shall disclose which facilities are and are
not currently in existence;
(15) the proposed disclosure statement as required by
section 82A.05, subdivision 1, and the proposed separate
disclosure, if applicable, as required by section 82A.05,
subdivision 6;
(16) a financial statement of the membership camping
operator as of the end of the membership camping operator's most
recent fiscal year, audited by an independent certified public
accountant; and, if the fiscal year end of the membership
camping operator is in excess of 120 days prior to the date of
filing the application, a financial statement, which may be
unaudited, as of a date within 120 days of the date of
application;
(17) a statement of the applicable material permits, other
than building permits, not yet obtained but required to be
obtained from various federal, state, and local agencies to
operate the campground in this state, stating which have been
applied for. If any permit has been refused, the reasons for
the refusal and the effect the refusal will have on subsequent
development of the campgrounds must be disclosed;
(18) a copy of each type of membership camping contract to
be sold in this state, the purchase price of each type and, if
the price varies, the reason for the variance;
(19) the number of membership camping contracts proposed to
be sold at each campground located in this state and a statement
describing the method used to determine the number;
(20) rules or regulations of general applicability
governing use and occupancy of the campgrounds; but not
including any temporary or emergency rules or regulations, or
any rules or regulations adopted in response to unique local or
immediate needs;
(21) copies of applications for and contracts with any
reciprocal program entity in which the membership camping
operator is to participate and represents as available for use
by purchasers;
(22) information concerning purchase or lease costs, rules,
forms, and any fees, other than the initial membership fee and
annual dues, which are required for purchaser usage of in-park
trailers, recreational vehicles, tents, or other overnight
accommodations, provided by or through the membership camping
operator, for purchasers as an alternative to using the
purchaser's own mobile accommodations;
(23) any additional information the commissioner reasonably
deems appropriate to administer the provisions of this chapter.
Subd. 3. [SIGNING OF APPLICATION.] The application shall
be signed by the membership camping operator, duly authorized
signatory, or any person holding a power of attorney for this
purpose from the membership camping operator. If the
application is signed pursuant to a power of attorney, a copy of
the power of attorney shall be included with the application.
Subd. 4. [EFFECTIVE DATE.] Unless an order denying
registration under section 82A.12 is in effect, or unless
declared effective by order of the commissioner prior thereto,
the application for registration shall automatically become
effective upon the expiration of 15 business days following
filing with the commissioner, but an applicant may consent in
writing to the delay of registration until the time the
commissioner may issue an order of registration. If the
commissioner requests additional information with respect to the
application, the application shall become effective upon the
expiration of 15 business days following the filing with the
commissioner of the additional information unless an order
denying registration under section 82A.12 is in effect or unless
declared effective by order of the commissioner prior thereto.
Sec. 5. [82A.05] [DISCLOSURE STATEMENT.]
Subdivision 1. [DELIVERY.] A disclosure statement shall be
delivered to each person to whom an offer is made before or
concurrently with:
(1) the first written offer other than offer by means of an
advertisement; or
(2) any payment pursuant to a sale, whichever occurs first.
Each person to whom an offer is made must be afforded a
reasonable opportunity to examine the disclosure statement and
must be permitted to retain the statement. The seller shall
obtain a receipt, signed by the person, acknowledging that he or
she has received a copy of the disclosure statement prior to the
execution by the purchaser of any membership camping contract.
All receipts shall be kept in files which are in the possession
of the membership camping operator or broker subject to
inspection by the commissioner, for a period of three years from
the date of the receipt.
Subd. 2. [CONTENTS.] A disclosure statement shall include
the following information:
(1) the name, principal address, and telephone number of
the membership camping operator and of its offices in this state;
(2) a brief description of the membership camping
operator's experience in the membership camping business,
including the number of years the membership camping operator
has been in the membership camping business;
(3) a brief description of the campgrounds owned or
operated by the membership camping operator and represented as
available for use by purchasers, including identification of the
amenities then available for use by purchasers, whether
amenities will be available to nonpurchasers and, if so, the
price to nonpurchasers therefor;
(4) a statement of whether or not the operator has obtained
a bond, deposited funds in an escrow account, obtained an
irrevocable letter of credit, or provided any other assurance
securing the cost of the amenities which are represented as
planned to be constructed or installed in the future for use by
purchasers and, if so, the identity of the amenities and the
year in which completion is estimated to occur;
(5) a description of the nature of the purchaser's title
to, interest in, or right or license to use the campgrounds and
amenities;
(6) a description of the membership camping operator's
ownership of, or other right to use, the campground and
amenities represented to be available for use by purchasers,
together with a brief description of any material blanket or
other material encumbrance on the campground, and the material
provisions of any agreements which materially restrict a
purchaser's use of the property, and a statement of the
consequences to purchasers in the event of any conveyances of
the campgrounds or foreclosure or other adverse action which can
be taken with respect to the encumbrances.
(7) a statement or summary of what required material
discretionary land use permits, the issuance of which is in the
discretion of the issuing governmental authority, have not been
obtained for each campground located in this state, and a
description of the conditions that must be met to obtain the
permits that have not yet been obtained;
(8) a summary and copy of the articles, bylaws, rules,
restrictions, or covenants regulating the purchaser's use of
each campground and amenities on each campground in this state,
including a statement of whether and how the articles, bylaws,
rules, restrictions, or covenants may be changed; provided that
the foregoing need not include any temporary or emergency rules
or regulations or any rules or regulations adopted in response
to unique local or immediate needs if the rules and regulations
are posted at the campground;
(9) a description of all payments required of a purchaser
under a membership camping contract, including initial fees and
any further fees, charges or assessments, together with any
provisions for changing the payments;
(10) a description of any restraints on the transfer of
membership camping contracts;
(11) a statement of the assistance, if any, that the
membership camping operator will provide to the purchaser in the
resale of membership camping contracts;
(12) a description of the policies of the membership
camping operator relating to the availability of camping sites
and whether reservations are required;
(13) a description of the membership camping operator's
right to change or withdraw from use all or a material portion
of the campgrounds or amenities and the extent to which the
operator is obligated to replace campgrounds or amenities
withdrawn;
(14) a description of any grounds for forfeiture of a
membership camping contract;
(15) a statement of the person's right to cancel the
membership camping contract as provided in section 82A.11;
(16) a statement describing all material terms and
conditions of any reciprocal program represented to be available
to purchasers, including whether the purchaser's participation
in the reciprocal program is dependent upon the continued
participation of the membership camping operator in the
reciprocal program and whether the membership camping operator
reserves the right to terminate the participation; and
(17) such additional information as may be reasonably
required by the commissioner to assure full and fair disclosure
of all material facts to prospective purchasers.
Subd. 3. [USE.] The disclosure statement shall not be used
for any promotional purpose before registration of the
membership camping contracts and after registration, when
required to be delivered pursuant to subdivision 1 of this
section, it shall be used only in its entirety. A person may
not advertise or represent that the commissioner has approved or
recommended the membership camping contracts or sale thereof. A
portion of the disclosure statement may not be underscored,
italicized, or printed in larger or heavier or different color
type than the remainder of the statement if the effect is to
render the statement misleading or deceptive.
Subd. 4. [CONTRACT AS DISCLOSURE STATEMENT.] A membership
camping contract which contains all of the information required
by subdivision 2 shall be deemed to be a disclosure statement
within the meaning of this section. Delivery of such a
membership camping contract shall be sufficient compliance with
the requirements imposed by this section for delivery of a
disclosure statement.
Subd. 5. [OTHER LAW.] Any disclosure statement which
complies with the requirements of any federal law or the laws of
any other state requiring substantially the same disclosure of
information as is required by this section, may by rule or order
of the commissioner be deemed to be in full or partial
compliance with this section.
Subd. 6. [SEPARATE DISCLOSURE.] If the membership camping
operator or that person's salespersons represents to a
prospective purchaser that the operator plans to construct or
install any amenities in the future, but the operator has not
guaranteed to do so and has not provided assurances that the
amenities will be installed pursuant to section 82A.04,
subdivision 2, clause (13)(iv), the operator shall furnish a
separate disclosure to the prospective purchaser. The separate
disclosure shall be in 10-point bold type and shall state:
NOTICE: PURCHASE THIS MEMBERSHIP CAMPING CONTRACT ONLY ON THE
BASIS OF EXISTING AMENITIES. CONSTRUCTION OF PLANNED AMENITIES
IS NOT GUARANTEED. CONSTRUCTION MAY BE DEFERRED, REVISED, OR
CANCELED FOR A VARIETY OF REASONS. THE PLANNED AMENITIES FOR
THIS CAMPGROUND ARE (Insert list of amenities, including
estimated year of completion of each). IF THE SALESPERSON
DESCRIBES A SIGNIFICANT AMENITY WHICH IS NOT ON THIS LIST,
TELEPHONE COLLECT OR TOLL FREE TO (Insert headquarters telephone
number) TO VERIFY THE OPERATOR'S PLAN FOR SUCH A FACILITY.
The separate disclosure shall be delivered to each person
to whom an offer is made before or concurrently with:
(1) the first written offer other than offer by means of an
advertisement; or
(2) any payment pursuant to a sale, whichever is first.
The seller shall obtain a receipt, signed by the person,
acknowledging that the person has received a copy of the
separate disclosure required herein prior to the execution by
the purchaser of any membership camping contract. All receipts
shall be kept in files which are in the possession of the
membership camping operator or broker subject to inspection by
the commissioner for a period of three years from the date of
the receipt.
Sec. 6. [82A.06] [EXEMPTIONS.]
Subdivision 1. The following transactions are exempt from
the provisions of this chapter:
(1) an offer, sale, or transfer by any one person of not
more than one membership camping contract in any 12-month
period; unless the offer, sale, or transfer is effected by or
through a broker;
(2) an offer or sale by a government or governmental agency;
(3) a bona fide pledge of a membership camping contract;
and
(4) any transaction which the commissioner by rule or order
exempts as not being within the purposes of this chapter and the
registration of which he or she finds is not necessary or
appropriate in the public interest or for the protection of
purchasers.
Subd. 2. The following transactions are exempt from the
provisions of sections 82A.03; 82A.04; 82A.05; 82A.07; 82A.08;
82A.11, subdivisions 2 and 4; 82A.14; 82A.16; and 82A.17: any
sale which is made to a person who is not then physically
present in this state, and any offer which invites an offeree to
attend a sales presentation in another state if:
(1) the offeror has given at least ten days prior written
notice to the commissioner of its intention to offer or sell
membership camping contracts to residents of this state pursuant
to this exemption and paid a fee of $50;
(2) the offeror has demonstrated that the sales
presentation will be made, and the sale will be consummated, in
a state which specifically regulates the offer and sale of
membership camping contracts;
(3) the offeror has demonstrated that it will deliver a
disclosure statement to offerees who are residents of this state
which contains substantially the same or greater disclosure as
is required by section 82A.05; and
(4) the offeror has filed a consent to service of process
pursuant to section 82A.22.
Sec. 7. [82A.07] [AMENDMENT OF REGISTRATION.]
A person with a registration in effect, within 30 days
after the person becomes aware of, or should have become aware
of, the occurrence of any material change in the information on
file with the commissioner, including the disclosure statement,
which change could adversely affect purchasers, shall notify the
commissioner in writing of the change by an application to amend
the registration accompanied by a filing fee of $25. If the
amendment is approved by the commissioner, it shall become
effective upon the issuance by the commissioner of an order
approving the amendment. The amendment shall automatically
become effective upon the expiration of 15 business days
following filing with the commissioner unless the commissioner
has prior thereto issued an order denying or approving the
amendment.
Sec. 8. [82A.08] [ANNUAL REPORT.]
Subdivision 1. [REQUIREMENT.] During the period a
registration is effective, the membership camping operator shall
file an annual report in a format the commissioner may
reasonably prescribe. Every annual report shall be due by the
120th day following the end of the operator's fiscal year,
unless extended in writing by the commissioner for good cause.
The annual report shall:
(1) specify the aggregate number of membership camping
contracts sold in this state pursuant to the registration or any
amendment thereof;
(2) specify the number of membership camping contracts and
aggregate dollar amount of all sales of membership camping
contracts in this state by the membership camping operator since
the date the registration became effective, or since the last
annual report was filed with the commissioner, whatever date is
later;
(3) specify any exemption from registration claimed for any
sale described in clause (2);
(4) list any changes in the information required to be
filed under section 82A.04, subdivision 2, clause (4);
(5) include an audited or unaudited financial statement
consisting of a balance sheet for the membership camping
operator's last fiscal year end and an income statement for the
12 months next preceding the date of the balance sheet, both
prepared by an independent certified public accountant; and
(6) provide such other information as the commissioner may
by rule or order reasonably require to administer the provisions
of this chapter, including but not limited to, audited financial
statements.
Subd. 2. [FEE.] Every annual report filed pursuant to this
section shall be accompanied by a fee of $100.
Subd. 3. [CANCELLATION.] Failure to file the annual report
shall be cause for cancellation of the registration.
Cancellation shall occur ten days after mailing of the notice of
cancellation to the operator or registrant. If canceled, the
registration may be reinstated immediately following the filing
of the report and payment of the appropriate fees.
Sec. 9. [82A.09] [ADVERTISING.]
Subdivision 1. [REQUIREMENTS.] No person shall publish or
cause to be published in this state any advertisement offering a
membership camping contract which is required to be registered
pursuant to this chapter, or which is exempt from registration
under section 82A.06, subdivision 2, unless an actual copy of a
sample of the advertisement has been filed in the office of the
commissioner at least ten days prior to the first publication
thereof, or at such earlier time as the commissioner by rule or
order may allow, or unless the advertisement has been exempted
by rule of the commissioner.
Subd. 2. [RESTRICTIONS.] No person shall publish or cause
to be published in this state any advertisement concerning any
membership camping contract which is required to be registered
pursuant to this chapter, or which is exempt from registration
under section 82A.06, subdivision 2, after the commissioner has
found that the advertisement contains any statement that is
false or misleading, or omits to make any statement necessary in
order to make the statements made, in light of the circumstances
under which they were made, not misleading, and has so notified
the person by written order. The order may be issued without
prior notice or hearing. Up to 30 days after the issuance of
the order, the person desiring to use the advertisement may in
writing request a hearing on the order. Upon receipt of a
written request, the matter shall be set for hearing to commence
within 15 days after the receipt unless the person making the
request consents to a later date. After the hearing, which
shall be conducted in accordance with the provisions of chapter
14, the commissioner shall, by written order, either affirm,
modify, or vacate the order.
Sec. 10. [82A.10] [INSPECTION OF RECORDS.]
All records of a membership camping operator and broker and
their agents pertaining to the advertising or sale of membership
camping contracts in this state shall be maintained by the
membership camping operator or broker at that person's principal
place of business and shall there be subject to inspection by
the commissioner during normal business hours. The commissioner
shall be promptly notified of any change of address affecting
the location of the records of the membership camping operator
or broker and that person's agents.
Sec. 11. [82A.11] [SALES CONTRACT; RESCISSION.]
Subdivision 1. [WRITING.] Every membership camping
contract shall be in writing.
Subd. 2. [GENERALLY.] Any membership camping contract not
exempt under section 82A.06, and entered into after the
effective date of this chapter, is voidable at the discretion of
the purchaser, for a period of three years from the date of the
sale, if the contract was not registered under this chapter at
the time of the sale, unless subsequently thereto the contract
is registered under this chapter and in connection therewith,
the purchaser has received a written offer to repurchase the
contract for cash payable on closing of the repurchase, together
with interest thereon from the date of the purchase at the legal
rate or at the rate charged by the membership camping operator
or lender to the purchaser, whichever is higher, and the
purchaser has failed to accept the offer in writing within 30
days of its receipt. No offer of repurchase shall be effective
unless a duplicate copy thereof has been filed with the
commissioner at least 20 days prior to its delivery to the
offeree and the commissioner has not objected to the offer
within that time. The offer to repurchase shall be in the form
and contain the information the commissioner by rule or order
prescribes. If the purchaser no longer owns the membership
camping contract, the purchaser shall be entitled to maintain an
action at law, and the damages shall be the consideration paid
for the membership camping contract, together with interest
thereon as specified above from the date of acquisition to the
date of disposition, plus costs and reasonable attorney's fees,
less the value received by the purchaser upon disposition of the
membership camping contract.
Subd. 3. [RIGHT OF RESCISSION.] A purchaser has an
unconditional right to rescind any membership camping contract,
or revoke any offer, at any time prior to or within three days
after the date the purchaser actually receives a legible copy of
the binding contract. Predating of a document does not affect
the time in which the right to rescind may be exercised.
Subd. 4. [LABELING OF CONTRACT.] Each membership camping
contract shall be prominently labeled and captioned that it is a
document taken in connection with a sale of membership camping
contracts under this chapter.
Subd. 5. [NOTICE.] Each membership camping contract shall
contain the following notice which shall be in at least
ten-point type, stating:
"You are entitled to rescind this agreement for any reason
within three calendar days from the day you actually receive a
legible copy of this document signed by all parties. The
rescission must be in writing and sent by certified mail to the
membership camping operator along with this agreement and any
membership card issued to you or your family at the address
stated in this document. Upon rescission, you will receive a
refund of all money paid within 30 days after the membership
camping operator receives notice of your rescission."
The operator or broker may impose a fee of not more than
$25 for processing of a rescission. If the operator or broker
does so, it shall add the following clause to the notice:
"provided that the membership camping operator (or broker, if
the seller is a broker) may retain a processing fee of $......",
and insert the amount of the charge to be imposed.
In the event the membership camping contract is sold by a
broker or the broker's salesperson, the above notice shall be
modified to substitute the name of the broker for "membership
camping operator."
Subd. 6. [EFFECTIVE DATE.] Rescission occurs when the
purchaser gives written notice of rescission, whether or not the
membership camping contract or any membership card accompanies
the notice, to the membership camping operator or the broker at
the address stated in the contract. Notice of rescission, if
given by mail, is effective when the purchaser deposits a
certified letter properly addressed and postage prepaid in a
mailbox. A notice of rescission given by the purchaser need not
take a particular form and is sufficient if it indicates by any
form of written expression the intention of the purchaser not to
be bound by the membership camping contract.
Subd. 7. [NONWAIVER.] No act of a purchaser shall be
effective to waive the right to rescind as provided in this
section.
Sec. 12. [82A.12] [ENFORCEMENT; POWERS OF COMMISSIONER.]
Subdivision 1. [GENERALLY.] The commissioner may issue a
cease and desist order and may issue an order denying,
suspending, or revoking any registration, amendment renewal, or
exemption if the commissioner finds any of the following:
(1) that the membership camping operator or registrant or
any controlling person thereof has materially or intentionally
violated or failed to comply with any provision of this chapter
or any rule or order of the commissioner;
(2) that the offer or sale of the membership camping
contract has constituted or would constitute a material
misrepresentation to purchasers, or has operated or would
operate as a fraud or deceit upon purchasers;
(3) that the membership camping operator or registrant or
any controlling person, agent, or employee thereof, is engaging
or about to engage in false, fraudulent, or deceptive practices
in connection with the offer and sale of a membership camping
contract;
(4) that the membership camping operator or registrant or
any controlling person or employee thereof, has engaged in any
fraudulent or deceptive practice, whether or not in connection
with the offer and sale of membership camping contracts, and the
involvement of the person in the business of the membership
camping operator or registrant creates a substantial risk of
harm to prospective purchasers;
(5) that the financial condition of the membership camping
operator materially adversely affects, or would materially
adversely affect, the ability of the membership camping operator
such that there is a reasonable likelihood that the membership
camping operator will not be able to substantially fulfill its
obligations under the membership camping contract, and no other
financial security or assurance is provided by the membership
camping operator to fulfill the obligations;
(6) that the membership camping operator's or registrant's
enterprise or method of business with respect to the operation
of a campground in this state includes or would include
activities which are illegal or not in conformance with
applicable statutes, ordinances, or regulations of any
governmental entity;
(7) that the membership camping operator or registrant or
any controlling person thereof has made material
misrepresentations or concealed material facts in an application
for registration;
(8) that any fee required by this chapter to be paid by the
operator or registrant has not been paid; and
(9) that the membership camping operator or controlling
person, agent, or employee thereof, has failed faithfully to
perform any stipulation or agreement made with the commissioner
as an inducement to grant any registration, to reinstate any
registration, or to permit any disclosure statement; provided,
however, that this clause shall not be deemed to require any
stipulations or agreements.
Subd. 2. [HEARING ON ORDER.] If the commissioner finds
that there are reasonable grounds to believe that, unless an
order is issued promptly, there is an immediate and significant
risk of harm to purchasers, the commissioner may issue an order
under subdivision 1 without a prior hearing. Upon the entry of
such an order, the commissioner shall promptly serve a copy of
the order upon the subject membership camping operator or other
person. The order shall state the reasons for its issuance and
shall either order a hearing, which shall be set for no later
than 20 days from the date of the order, or specify that upon
the written request of the membership camping operator, or other
person, the matter will be set for hearing within 15 days after
receipt of the request; provided that with the consent of the
membership camping operator, or other person, a hearing may be
held subsequent to the expiration of either period specified
herein. If no hearing is requested within 30 days of service of
the order and none is ordered by the commissioner, the order
will remain in effect until it is modified or vacated by the
commissioner. If a hearing is requested or ordered, the
commissioner, after notice and hearing in accordance with the
provisions of chapter 14, shall affirm, modify, or vacate the
order.
Subd. 3. [ORDER TO SHOW CAUSE.] If there are not grounds
to employ the procedure prescribed in subdivision 2, the
commissioner may issue an order to show cause setting a hearing
on a date not later than ten days after its entry and requiring
a membership camping operator or other person to appear and show
cause why a cease and desist order should not be issued, or why
an order denying, suspending, or revoking a registration,
amendment, or exemption should not be issued. The order to show
cause shall give reasonable notice of the time and place for
hearing thereon, which shall be within ten days after entry of
the order, unless the respondent agrees otherwise, and shall
state the reasons for the entry of the order. The hearing shall
be conducted in accordance with the provisions of chapter 14.
After the hearing, the commissioner shall enter an order making
such disposition of the matter as the facts require.
Subd. 4. [BURDEN OF PROOF.] In any proceeding under this
chapter, the burden of proving an exemption or an exception from
a definition is upon the person claiming it.
Subd. 5. [INVESTIGATIONS.] The commissioner may make
necessary public or private investigations within or outside of
this state to determine whether any person has violated or is
about to violate this chapter or any rule or order hereunder or
to aid in the enforcement of this chapter or in the prescribing
of rules and forms hereunder. For purposes of any investigation
or proceeding under this chapter, the commissioner or any person
designated by him or her may require or permit any person to
file a statement in writing, under oath or otherwise as the
commissioner determines, setting forth the facts and
circumstances concerning the matter to be investigated;
administer oaths or affirmations, and upon his or her own motion
or upon request of any party may subpoena witnesses, compel
their attendance, take evidence, and require the production of
any matter which is relevant to the investigation, including the
existence, description, nature, custody, condition, and location
of any books, documents, or other tangible things and the
identity and location of persons having knowledge of relevant
facts, or any other matter reasonably calculated to lead to the
discovery of material evidence. Upon failure to obey a subpoena
or to answer questions propounded by the investigating officer
and upon reasonable notice to all persons affected thereby, the
commissioner may apply to the district court for an order to
compel compliance.
Sec. 13. [82A.13] [PROHIBITED PRACTICES.]
Subdivision 1. [UNTRUE STATEMENTS FILED IN DOCUMENTS.] No
person shall make or cause to be made any untrue statement of a
material fact in an application or other document filed with the
commissioner under this chapter, or omit to state in the
application or other document any material fact which is
required to be stated therein, or fail to notify the
commissioner of any material change as required by sections
82A.07 and 82A.16, subdivision 3.
Subd. 2. [FRAUD.] No person shall, in connection with the
offer or sale of any membership camping contract, directly or
indirectly:
(1) employ any device, scheme, or artifice to defraud;
(2) make any untrue statement of a material fact, or omit
to state material facts necessary in order to make the
statements made, in the light of the circumstances under which
they are made, not misleading; or
(3) engage in any act, practice, or course of business
which operates or would operate as a fraud or deceit upon any
person.
Subd. 3. [MISREPRESENTATIONS.] No person may represent or
cause to be represented to any prospective purchaser of a
membership camping contract that the filing of any document
under this chapter or the registration or exemption from
registration of a membership camping contract constitutes a
finding by the commissioner that any document filed under this
chapter is true, complete, and not misleading, or that the
commissioner has passed in any way upon the merits of any
membership camping contract, and no person may represent that a
membership camping contract is registered or exempted from
registration when in fact, such is not the case.
Sec. 14. [82A.14] [UNFAIR PRACTICES.]
No membership camping operator shall:
(1) sell or offer to sell any membership camping contract
with respect to a campground located in this state which is
subject to a blanket encumbrance unless;
(i) each person holding an interest in a blanket
encumbrance shall have executed and delivered a nondisturbance
agreement and recorded the agreement in the real estate records
of the county in which the campground is located; or
(ii) a bond or irrevocable letter of credit has been
issued, or cash or a certified check in an amount sufficient to
cover payment of all amounts secured by the blanket encumbrance
has been deposited, in the name of the state for the benefit and
protection of purchasers of membership camping contracts and
subject to terms as approved by the commissioner. Any interest
accruing on amounts held in the account shall be payable, as and
when earned, to the membership camping operator. Any bond shall
be executed by an insurance company authorized to do business in
this state, which has sufficient net worth to satisfy the
indebtedness and which has given consent to be sued in this
state. Any irrevocable letter of credit shall be issued by a
bank or savings and loan association which has sufficient net
worth to satisfy the indebtedness and which has given its
consent to be sued in this state. The bond, cash, certified
check, or irrevocable letter of credit shall be in an amount
which is not less than 110 percent of the remaining principal
balance of every indebtedness or obligation secured by a blanket
encumbrance affecting the campground. The bond or agreement
accompanying the cash, certified check, or irrevocable bank
letter of credit shall provide for the payment of all amounts
secured by the blanket encumbrance, including costs, expenses,
and legal fees of the lien holder, if for any reason the blanket
encumbrance is enforced. The bond, cash, certified check, or
letter of credit may be reduced periodically in proportion to
the reductions in the amount secured by the blanket encumbrance;
or
(iii) the lender providing the major hypothecation loan to
the membership camping operator (the "hypothecation lender"),
and having a lien on or security interest in the membership
camping operator's interest in the campground, shall have
executed and delivered a nondisturbance agreement and recorded
the agreement in the real estate records of the county in which
the campground is located in this state. Each person holding an
interest in a blanket encumbrance superior to the interest held
by the hypothecation lender shall have executed, delivered, and
recorded an instrument stating that the person shall give the
hypothecation lender notice of, and at least 30 days'
opportunity to cure, any default under the blanket encumbrance
which entitles the person to foreclose upon the campground. The
instrument shall state that the notice and opportunity to cure
shall be given before the person commences any foreclosure
action affecting the campground and in accordance with the
instrument. The hypothecation lender shall have guaranteed that
it will cure or arrange for the cure of the default. Any holder
of a blanket encumbrance inferior to the hypothecation lender
who acquires the campground in foreclosure shall take the
campground subject to the hypothecation lender's nondisturbance
agreement. For purposes of this provision, a "hypothecation
lender" is any lender extending a loan or line of credit to a
membership camping operator secured by all or substantially all
of the contract receivables arising from the membership camping
operator's sale of membership camping contracts in this state.
For purposes of this provision, "lender" means an insurance
company or a federally or state chartered bank, savings and loan
association, any other lending institution, the deposits of
which are guaranteed or insured, by a federal agency, or any
other person which has sufficient net worth to pay the
obligations pursuant to this section if there are no reasonable
grounds to believe that the lender will not be able to pay these
obligations in the future; or
(iv) the operator can provide an alternative plan
acceptable to the commissioner;
(2) sell any campground which is located in this state and
available for use by purchasers, unless:
(i) the membership camping operator sells the campground to
a person who takes the campground subject to all rights and
interests of purchasers, and contractually agrees not to
compromise the rights and interests of purchasers in regard to
future conveyances of, or encumbrances placed on the campground;
(ii) the membership camping operator immediately
substitutes for the use of purchasers another campground which
is in the same general area and is at least as desirable for the
purpose of camping and outdoor recreation as the previous
campground. For purposes of this provision, "same general area"
means a location within a 50-mile radius of the previous
campground; or
(iii) the membership camping operator immediately
substitutes for the use of purchasers another campground and the
substitution is approved by two-thirds of all existing
purchasers;
(3) substitute any campground located in this state and
available for use by purchasers with a different campground,
unless the substituted campground is in the same general area
and is at least as desirable for the purpose of camping and
outdoor recreation as the previous campground. For purposes of
this provision, "same general area" means a location within a
50-mile radius of the previous campground;
(4) sell membership camping contracts with respect to any
campground located in this state that is not owned by the
membership camping operator or leased by the membership camping
operator for a lease term at least equal to the term of the
membership camping contract with respect to the campground;
(5) fail to disclose the circumstances, if any, under which
any reciprocal program that has been offered as an inducement to
purchasers may be terminated;
(6) materially modify any campground rules or regulations
or modify purchasers' rights to or the scope and nature of an
amenity in a manner which significantly degrades or diminishes
the material rights of any purchaser without prior notice to
purchasers resident in this state; or materially adversely
modify any material campground rules or regulations or
materially adversely modify purchaser's rights to or the scope
and nature of an amenity in a manner which the purchaser proves:
(i) significantly degrades or diminishes any material
rights of that purchaser; and
(ii) has no compensating benefit to any other purchaser or
groups of purchasers;
(7) terminate or provide for termination of a membership
camping contract, except for good cause. "Good cause" shall
mean failure of the purchaser to substantially or consistently
comply with reasonable requirements imposed upon him or her by
the membership camping contract and campground rules and
regulations;
(8) terminate a membership camping contract without first
giving written notice setting forth all reasons for the
termination to the purchaser at least 30 days prior to the
termination becoming effective;
(9) increase a purchaser's membership dues after the sale
of a contract in such a manner as to result in an increase
thereof greater than whichever of the following increases is
higher:
(i) the actual increase in costs of services or
improvements for which the membership dues are imposed; or
(ii) the increase in the United States city average
consumer price index for all urban consumers issued by the
United States Bureau of Labor Statistics or such other federally
prepared consumer price index or wage earner index as reasonably
selected by the operator in its discretion;
(10) require purchaser to certify the absence of any
misrepresentation or other violation of this chapter provided,
however, that a purchaser's acknowledgment of receipt of a copy
of the membership camping contract shall not be deemed to
constitute such a certification;
(11) require the purchaser to waive the right to assert
against the membership camping operator or any assignee any
claim or defense the purchaser may have against the membership
camping operator under the membership camping contract; or
(12) materially and repeatedly fail to maintain a
campground in this state in the manner contractually agreed upon.
Sec. 15. [82A.15] [PRESERVATION OF PURCHASER'S CLAIMS AND
DEFENSES.]
Any assignee of a membership camping contract or obligation
relating to membership camping contracts shall be subject to all
claims and defenses of the purchaser against the membership
camping operator arising from the sale, notwithstanding any
agreement to the contrary. An assignee who takes assignment of
the membership camping contract without assumption of any
obligations thereunder shall have no obligation or liability to
assume the obligations or responsibilities of the membership
camping operator under the membership camping contract. The
assignee's liability under this section shall not exceed the
amount owing to the assignee at the time the claim or defense is
asserted against the assignee. The rights of the purchaser
under this subdivision can only be asserted as a matter of
defense to or set off against a claim by the assignee.
Sec. 16. [82A.16] [LICENSURE REQUIREMENT.]
Subdivision 1. [SALESPERSON OR BROKER.] A salesperson or
broker may not offer or sell a membership camping contract until
duly licensed under this chapter.
Subd. 2. [FEE AND CONTENTS.] A salesperson or broker may
apply for a license by filing a fee of $25 and an application
with the commissioner which includes the following information:
(1) the applicant's name, age, residence address, and, in
the case of a salesperson, the name and place of business of the
membership camping operator or broker on whose behalf the
salesperson will be acting;
(2) the applicant's date and place of birth;
(3) a statement whether or not the applicant within the
past ten years has been convicted of a misdemeanor or felony
involving theft, fraud, or dishonesty or whether or not the
applicant within the past ten years has been enjoined from, had
any civil penalty assessed for, or been found to have engaged in
any violation of any securities, land sales, camping, or
consumer protection statutes;
(4) a statement whether or not the applicant is named as a
defendant in a pending criminal indictment or proceeding
involving fraud, theft, or dishonesty or is a defendant in a
pending lawsuit arising out of alleged violations of securities,
land sales, camping, or consumer protection statutes. A copy of
the charge, complaint, or lawsuit shall be provided to the
commissioner;
(5) a statement describing the applicant's employment
history for the past five years and whether or not any
termination of employment during the last five years was
occasioned by a theft, fraud, or act of dishonesty;
(6) an affidavit certifying that the applicant is
knowledgeable concerning the provisions of sections 82A.05,
82A.13, 82A.14, and 82A.16 and any rules adopted under those
sections;
(7) a statement whether or not the applicant has ever been
licensed by this state or its political subdivisions to engage
in any other business or profession; whether any such license
has been denied, suspended, or revoked and, if so, the
circumstances of the denial, suspension, or revocation;
(8) such other information as the commissioner may
reasonably deem necessary to administer the provisions of this
act, by rule or order.
Subd. 3. [AMENDMENTS.] Each licensee shall, within 15 days
after the occurrence of any material change in the information
contained in the initial application for license, file with the
commissioner an amendment to the application setting forth the
facts of change. The following shall be material changes
requiring amendment:
(1) any termination of employment with a membership camping
operator or broker;
(2) any new employment with a different membership camping
operator or broker;
(3) upon any occasion when the salesperson or broker is
named as a defendant in any criminal indictment or proceeding
involving fraud, theft, or dishonesty or is a defendant in any
pending lawsuit arising out of alleged violations of this
chapter or any securities, land sales, or consumer protection
statutes. A copy of the complaint or lawsuit shall be provided
to the commissioner; and
(4) a change of name or address.
Subd. 4. [SALESPERSONS.] A salesperson must be licensed to
act on behalf of a registered membership camping operator or
licensed broker and may not be licensed to act on behalf of more
than one membership camping operator or broker in this state
during the same period of time. The license of each salesperson
shall be mailed to and remain in the possession of the
salesperson until canceled.
Subd. 5. [EXPIRATION.] Every license issued pursuant to
this chapter shall expire on the February 28 next following the
issuance of the license.
Subd. 6. [RENEWAL.] The license of a salesperson and
broker shall be renewed annually by the filing of a form
prescribed by the commissioner and payment of a fee of $10.
Subd. 7. [ALTERNATIVE SYSTEM.] Notwithstanding the
provisions of subdivisions 5 and 6, the commissioner may
institute a system by rule pursuant to chapter 14 to provide
three-year licenses from the date of issuance for any license
prescribed by this section.
Subd. 8. [RESPONSIBILITY OF OPERATOR.] Each membership
camping operator or broker shall be responsible for any
violations of section 82A.13 or 82A.14 by any and all of its
salespersons while acting as its agents in connection with the
offer or sale of membership camping contracts. Unless the
broker is liable for such violations pursuant to section 82A.19,
subdivision 2, the operator's or broker's liability under this
subdivision shall be limited to rescission and refund of the
purchaser's payments for the membership camping contract.
Sec. 17. [82A.17] [DENIAL; SUSPENSION; REVOCATION OF
LICENSES.]
Subdivision 1. [GROUNDS.] The commissioner may by order
deny a license application, suspend or revoke any license, or
may censure a licensee if he or she finds that the order is in
the public interest, and that the applicant or licensee:
(1) has filed an application for a license which is
incomplete in any material respect or contains any statement
which, in light of the circumstances under which it is made, is
false or misleading with respect to any material fact;
(2) has engaged in a fraudulent or deceptive practice;
(3) is permanently or temporarily enjoined by any court of
competent jurisdiction from engaging in or continuing any
conduct or practice involving any aspect of the membership
camping contract business or any other statute designed to
protect consumers; or
(4) has materially or intentionally violated or failed to
comply with any provision of this chapter or any rule or order
under this chapter.
Subd. 2. [ORDER TO SHOW CAUSE.] The commissioner shall
issue an order requiring a licensee or applicant for a license
to show cause why the license should not be revoked or
suspended, or the licensee censured, or the application denied.
The order shall be calculated to give reasonable notice of the
time and place for hearing thereon, and shall state the reasons
for the entry of the order. If the commissioner finds that
there are reasonable grounds to believe that, unless an order is
issued promptly, there is an immediate and significant risk of
harm to purchasers, the commissioner may by order summarily
suspend a license pending final determination of any order to
show cause. If a license is suspended pending final
determination of an order to show cause, a hearing on the merits
shall be held within 30 days of the issuance of the order of
suspension. All hearings shall be conducted in accordance with
the provisions of chapter 14. After the hearing, the
commissioner shall enter an order making such disposition of the
matter as the facts require. If the licensee or applicant fails
to appear at a hearing of which he or she has been duly
notified, the person shall be deemed in default, and the
proceeding may be determined against him or her upon
consideration of the order to show cause, the allegations of
which may be deemed to be true.
Sec. 18. [82A.18] [ENFORCEMENT; PENALTIES AND REMEDIES.]
Subdivision 1. [CIVIL ACTION.] Whenever the commissioner
has reasonable cause to believe that any person has engaged or
is about to engage in any act or practice constituting a
violation of any provisions of this chapter or any rule or order
thereunder, he or she may, in addition to all other remedies,
institute on behalf of the state of Minnesota a civil action
seeking appropriate relief. In addition to all other penalties
and remedies provided by this chapter, whether administrative or
judicial in nature, the courts of this state shall have
jurisdiction to grant such temporary, interlocutory, or
permanent injunctive relief as is necessary to prevent and
restrain violations of this chapter and may upon a proper
showing appoint a receiver for the property, assets, business,
and affairs of a membership camping operator.
Subd. 2. [CIVIL PENALTY.] Any person who materially or
repeatedly violates section 82A.03, 82A.05, 82A.09, 82A.13,
82A.14, or 82A.16 shall be subject to a fine of not more than
$1,000 for each violation provided, however, that the total
recovery arising from the same failure to comply, but involving
different purchasers, shall be limited to $5,000. A fine
authorized by this subdivision may be imposed in a civil action
brought by the attorney general on behalf of the state of
Minnesota, and shall be deposited into the state treasury.
Subd. 3. [PENALTY FOR UNPAID FEES.] Any person who fails
to pay the filing fees required by this chapter and continues to
sell membership camping contracts, is liable civilly in an
action brought by the attorney general on behalf of the
commissioner for a penalty in an amount equal to treble the
unpaid fees.
Sec. 19. [82A.19] [CIVIL LIABILITY.]
Subdivision 1. [GENERALLY.] A person who violates any
provision of section 82A.05, 82A.13, or 82A.14 or any rule or
order thereunder shall be liable to the purchaser who may sue
for actual damages caused thereby, for rescission, or other
relief as the court may deem appropriate.
Subd. 2. [JOINT AND SEVERAL LIABILITY.] Every person who
materially aids in the act or a violation of section 82A.05,
82A.13, or 82A.14 is also liable jointly and severally with and
to the same extent as the person, directly committing the
violation unless the person who would otherwise be liable
hereunder had no knowledge of or reasonable grounds to know of
the existence of the facts by reason of which the liability is
alleged to exist.
Subd. 3. [COSTS AND DISBURSEMENTS.] The prevailing party,
in any suit authorized under this section or brought pursuant to
section 82A.11, may recover costs and disbursements plus
reasonable attorney's fees, in addition to any other relief
granted.
Subd. 4. [REMEDIES ADDITIONAL.] The rights and remedies
provided by this chapter shall be in addition to any and all
other rights and remedies that may exist at law or in equity.
Subd. 5. [LIMITATIONS ON ACTIONS.] An action shall not be
commenced pursuant to this section later than three years from
the date the person enters into the contract.
Sec. 20. [82A.20] [RULES AND OPINIONS.]
Subdivision 1. [RULEMAKING POWER.] The commissioner may
adopt rules to carry out the provisions of this chapter. For
the purpose of rules and forms, the commissioner may classify
membership camping contracts, persons, or matters within his or
her jurisdiction, and prescribe different requirements for
different classes insofar as they are consistent with this
chapter. Rules shall be adopted in accordance with chapter 14,
and shall not be inconsistent with the provisions of this
chapter.
Subd. 2. [OPINIONS.] The commissioner, upon request and
upon payment of a fee of $50, may honor requests for
interpretive opinions relating to this chapter.
Sec. 21. [82A.21] [SCOPE.]
The provisions of this chapter concerning offers and sales
of membership camping contracts apply when an offer or sale is
made in this state.
For the purpose of this chapter, an offer or sale is made
in this state when a sales presentation is made in this state.
An offer or sale is also made in this state, whether or not
either party is then present in this state, when:
(1) the offer originates from this state and is intended to
induce the offeree to attend a sales presentation in this state;
or
(2) the offer is directed by the offeror to this state,
received by the offeree in this state and is intended to induce
the offeree to attend a sales presentation in this or another
state.
An offer or sale is not made in this state when a publisher
circulates or there is circulated on the publisher's behalf in
this state any bona fide newspaper or other publication of
general, regular, and paid circulation which is not published in
this state, or a radio or television program originating outside
this state is received in this state.
Sec. 22. [82A.22] [SERVICE OF PROCESS.]
Subdivision 1. [CONSENT TO SERVICE.] Every membership
camping operator or broker, on whose behalf an application for
registration or exemption is filed, shall file with the
commissioner, in such form as the commissioner may prescribe, an
irrevocable consent appointing the commissioner and the
commissioner's successors in office to be the membership camping
operator's or broker's attorney to receive service of any lawful
process in any noncriminal suit, action, or proceeding against
the membership camping operator or broker or his or her
successor, executor, or administrator which arises under this
chapter or any rule or order thereunder after the consent has
been filed, with the same force and validity as if served
personally on the membership camping operator or the operator's
successor, executor, or administrator. Service may be made by
leaving a copy of the process in the office of the commissioner,
but it is not effective unless:
(1) the plaintiff, who may be the commissioner in a suit,
action, or proceeding instituted by him or her, sends notice of
the service and a copy of the process by certified mail to the
defendant or respondent at that person's last address on file
with the commissioner; and
(2) the plaintiff's affidavit of compliance with this
section is filed in the case on or before the return day of the
process, if any, or within such further time as the court allows.
Subd. 2. [APPOINTMENT OF COMMISSIONER.] When any person,
including any nonresident of this state, engages in conduct
prohibited or made actionable by this chapter, or any rule or
order thereunder, and the person has not filed a consent to
service of process under subdivision 1 and personal jurisdiction
over this person cannot otherwise be obtained in this state,
that conduct shall be considered equivalent to the person's
appointment of the commissioner or the commissioner's successor
to be the person's attorney to receive service of any lawful
process in any noncriminal suit, action, or proceeding against
the person which grows out of that conduct and which is brought
under this chapter or any rule or order thereunder, with the
same force and validity as if served on the person personally.
Service may be made by leaving a copy of the process in the
office of the commissioner, and it is not effective unless:
(1) the plaintiff, who may be the commissioner in a suit,
action, or proceeding instituted by the commissioner, forthwith
sends notice of the service and a copy of the process by
certified mail to the defendant or respondent at his or her last
known address or takes other steps which are reasonably
calculated to give actual notice; and
(2) the plaintiff's affidavit of compliance with this
subdivision is filed in the case on or before the return day of
the process, if any, or within such further time as the court
allows.
Subd. 3. [CONTINUANCES.] When process is served under this
section, the court or the commissioner in a proceeding before
him or her shall order such continuance as may be necessary to
afford the defendant or respondent reasonable opportunity to
defend.
Sec. 23. [82A.23] [WAIVERS VOID.]
Any condition, stipulation, or provision purporting to bind
any person acquiring any membership camping contract to waive
compliance with any provision of this chapter or any rule or
order thereunder is void.
Sec. 24. [82A.24] [ADMINISTRATION.]
Subdivision 1. [GENERALLY.] This chapter shall be
administered by the commissioner of commerce.
Subd. 2. [RESPONSIBILITIES OF DEPARTMENT.] It is unlawful
for the commissioner or any of his or her officers or employees
to use for personal benefit any information which is filed with
or obtained by the commissioner and which is not generally
available to the public. Nothing in this chapter authorizes the
commissioner or any of his or her officers or employees to
disclose any confidential information except among themselves or
to other administrators or regulatory authorities, or when
necessary or appropriate in a proceeding or investigation under
this chapter. No provision of this chapter either creates any
privilege or derogates from any privilege which exists at common
law or otherwise when documentary or other evidence is sought
under a subpoena directed to the commissioner or any of his or
her officers or employees.
Subd. 3. [PUBLIC DOCUMENTS.] All applications and other
documents filed with the commissioner under this chapter, except
for loan or real estate agreements and building plans and
specifications which have not otherwise been made public by the
membership camping operator, shall be open to public inspection
in accordance with rules prescribed by the commissioner. Loan
or real estate agreements and building plans and specifications
which have not otherwise been made public by the operator shall
be classified as protected nonpublic data or private data on
individuals. The commissioner may publish information filed
with him or her or obtained by him or her if, in the judgment of
the commissioner, such action is in the public interest.
Subd. 4. [DOCUMENT FILING.] A document is filed when it is
received by the commissioner.
Subd. 5. [REGISTER OF FILING.] The commissioner shall keep
a register of all filings which are or have ever been effective
under this chapter and all denial, suspension, revocation, and
other orders which have been entered under this chapter. The
register shall be open for public inspection.
Subd. 6. [COPIES.] The commissioner upon request shall
furnish to any person at a reasonable charge photostatic or
other copies, certified under his or her seal of office if
certification is requested, of any entry in the register or any
order or other document on file in his or her office except for
documents not available to the public pursuant to subdivision
3. Any copy so certified is admissible in evidence under
section 600.13.
Subd. 7. [SERVICE OF ORDERS.] Orders of the commissioner
shall be served by mailing a copy by certified mail to the most
recent address of the recipient of the order as it appears in
the files of the commissioner. Subpoenas shall be served in the
same manner as provided in civil actions in the district courts.
Sec. 25. [82A.25] [CRIMINAL PENALTIES.]
Any person who willfully violates section 82A.03 by
offering or selling unregistered, nonexempt membership camping
contracts or section 82A.13 or any order of the commissioner
pursuant thereto of which that person has notice, may be fined
not more than $5,000 or imprisoned not more than five years or
both. Each of the acts specified shall constitute a separate
offense and a prosecution or conviction for any one of the
offenses shall not bar prosecution or conviction for any other
offense.
Sec. 26. [82A.26] [NONAPPLICABILITY OF CERTAIN LAW.]
Membership camping contracts registered pursuant to this
chapter are exempt from the provisions of chapter 83. To the
extent that licensed salespersons and licensed brokers engage in
the offer or sale of membership camping contracts, those brokers
and salespersons are exempt from the licensing requirements of
chapter 82.
Sec. 27. [EFFECTIVE DATE.]
This act is effective January 1, 1986.
Approved May 17, 1985
Official Publication of the State of Minnesota
Revisor of Statutes