Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 252-H.F.No. 1506 
           An act relating to commerce; regulating certain 
          rentals of real property, membership camping 
          practices, and subdivided land sales; amending 
          Minnesota Statutes 1988, sections 82A.02, by adding a 
          subdivision; 82A.04, subdivision 2; 82A.13, 
          subdivision 2; 83.20, by adding a subdivision; and 
          83.30, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
      Section 1.  Minnesota Statutes 1988, section 82A.02, is 
amended by adding a subdivision to read: 
     Subd. 1a.  [ADVANCED PAYMENT.] "Advanced payment" means any 
money paid in advance regardless of its descriptive 
nomenclature, including, but not limited to, a management fee, 
listing, security, or advance fee or payment. 
    Sec. 2.  Minnesota Statutes 1988, section 82A.04, 
subdivision 2, is amended to read: 
    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 name of the campground, 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 or 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 rules 
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) 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; 
     (15) a financial statement of the membership camping 
operator as of the end of the membership camping operator's most 
recent fiscal year, prepared by an independent public accountant 
and certified by the camping operator; and, if the fiscal year 
end of the membership camping operator is in excess of 180 days 
prior to the date of filing the application, a financial 
statement, which may be unaudited, as of a date within 180 days 
of the date of application; 
     (16) 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 membership 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; 
    (17) 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; 
    (18) 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; 
    (19) rules of general applicability governing use and 
occupancy of the campgrounds; but not including any temporary or 
emergency rules, or any rules adopted in response to unique 
local or immediate needs; 
    (20) 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; 
    (21) 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; and 
     (22) any additional information the commissioner reasonably 
deems appropriate to administer the provisions of this chapter. 
    Sec. 3.  Minnesota Statutes 1988, section 82A.13, 
subdivision 2, is amended to read: 
    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; or 
     (4) accept an advance payment for services rendered by an 
agent in connection with the resale of a membership camping 
contract. 
    Sec. 4.  Minnesota Statutes 1988, section 83.20, is amended 
by adding a subdivision to read: 
    Subd. 15.  "Advance payment" means any money paid in 
advance regardless of its descriptive nomenclature, including 
but not limited to, management fee, listing, security, or 
advance fee or payment in connection with the resale of a 
timeshare interest. 
    Sec. 5.  Minnesota Statutes 1988, section 83.30, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FORM; DUE DATE.] During the period a 
registration is effective, the subdivider shall file an annual 
report in a format the commissioner may by rule prescribe.  The 
report must include a financial statement of the subdivider's 
most recent fiscal year, prepared by an accountant and certified 
by the subdivider.  An audited financial statement shall not be 
required.  Every annual report shall be due by the 120th day 
following the end of the subdivider's fiscal year, unless 
extended in writing by the commissioner for good cause.  
    The rulemaking authority in this subdivision does not 
include emergency rulemaking authority pursuant to chapter 14.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 4 are effective the day following final 
enactment.  Section 5 is effective retroactive to January 1, 
1989, and applies to any report due on or after that date. 
    Presented to the governor May 22, 1989 
    Signed by the governor May 23, 1989, 7:17 a.m.