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                            CHAPTER 439-S.F.No. 1915 
                  An act relating to commerce; changing the enforcement 
                  authority of the commissioner; providing continuing 
                  education and reporting requirements for certain 
                  licenses; regulating inspections of cosmetology salons 
                  and schools; regulating disclosures of information and 
                  data; regulating securities registrations and 
                  exemptions; regulating franchise registrations and 
                  definitions; regulating cancellations of membership 
                  camping contracts; modifying the bond or insurance 
                  requirements for abstractors; regulating residential 
                  building contractors; regulating certain real estate 
                  disclosures; regulating unclaimed properties and 
                  notaries public; removing a certain licensing 
                  exception; repealing an obsolete provision; amending 
                  Minnesota Statutes 1994, sections 45.011, subdivision 
                  1; 45.027, subdivision 7, and by adding subdivisions; 
                  47.206, subdivision 1; 53A.081, subdivision 1; 60K.19, 
                  subdivisions 7, 8, and 10; 80A.05, subdivision 1; 
                  80A.06, subdivision 3; 80A.09, by adding a 
                  subdivision; 80A.10, subdivision 4; 80A.11, by adding 
                  a subdivision; 80A.14, by adding subdivisions; 80A.15, 
                  subdivisions 2 and 3; 80C.01, by adding a subdivision; 
                  80C.05, by adding a subdivision; 82.19, subdivision 5; 
                  82.195, subdivision 2; 82.196, subdivisions 1 and 2; 
                  82.197, subdivisions 1, 2, 3, and 4; 82.22, 
                  subdivision 13; 82A.11, by adding a subdivision; 
                  82B.19, by adding a subdivision; 155A.08, subdivision 
                  3; 155A.09, subdivision 7; 155A.095; 326.37, by adding 
                  a subdivision; 326.87, by adding a subdivision; 
                  326.91, by adding subdivisions; 326.991; 332.34; 
                  345.41; 345.42; 345.43, by adding a subdivision; 
                  345.515; 359.01, subdivisions 1 and 2; 359.02; and 
                  359.061; Minnesota Statutes 1995 Supplement, sections 
                  16A.6701, subdivision 1; 80A.15, subdivision 1; 82.20, 
                  subdivision 15; 82.34, subdivision 7; 83.26, 
                  subdivision 2; and 386.66; proposing coding for new 
                  law in Minnesota Statutes, chapters 45; and 332; 
                  repealing Minnesota Statutes 1994, sections 80A.14, 
                  subdivision 8; 326.95, subdivision 4; 326.97, 
                  subdivision 3; 326.99; and 345.43, subdivisions 1 and 
                  2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                              GENERAL ENFORCEMENT
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        16A.6701, subdivision 1, is amended to read: 
           Subdivision 1.  [STATE LICENSE AND SERVICE FEES.] For 
        purposes of section 16A.665, subdivision 3, and this section, 
        the term "state license and service fees" means, and refers to, 
        all license fees, service fees, and charges imposed by law and 
        collected by any state officer, agency, or employee, which are 
        listed below or which are defined as departmental earnings under 
        section 16A.1285, subdivision 1, and the use of which is not 
        otherwise restricted by law, and which are not required to be 
        credited or transferred to a fund other than the general fund:  
           Minnesota Statutes 1994, sections 3.9221; 5.12; 5.14; 5.16; 
        5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 
        16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 
        18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 
        and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 
        35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 
        46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 
        47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 
        subdivision 4; 47.65; 48.475, subdivision 1; 48.61, subdivision 
        7; 48.93; 49.36, subdivision 1; 52.01; 52.203; 53.03, 
        subdivisions 1, 5, and 6; 53.09, subdivision 1; 53A.03; 53A.05, 
        subdivision 1; 53A.081, subdivision 3; 54.294, subdivision 1; 
        55.04, subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, 
        subdivision 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 
        2; 60A.23, subdivision 8; 60K.19, subdivision 5; 65B.48, 
        subdivision 3; 70A.14, subdivision 4; 72B.04, subdivision 10; 
        79.251, subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 
        7a, 8, and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 
        1; 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 
        subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 
        2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 
        subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 
        subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 
        83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 
        2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 
        subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 
        subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 
        168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 
        168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 
        176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 
        183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 
        5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 
        240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 
        subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 297.04; 
        297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 
        300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 
        326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 
        331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 
        subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 
        7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 
        336A.09; 345.35; 345.43, subdivision 1 2a; 345.44; 345.55, 
        subdivision 3; 347.33; 349.151; 349.161; 349.162; 349.163; 
        349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 
        3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; 
        Minnesota Statutes 1994, chapters 154; 216B; 237; 302A; 303; 
        308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, 
        chapter 254, section 7; and Laws 1994, chapter 573, section 4; 
        Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 
        7515.0210; and 9545.2000 to 9545.2040. 
           Sec. 2.  Minnesota Statutes 1994, section 45.011, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] As used in chapters 45 to 83, 
        155A, 309, 332, 345, and 359, and sections 326.83 to 326.98, and 
        386.61 to 386.78, unless the context indicates otherwise, the 
        terms defined in this section have the meanings given them.  
           Sec. 3.  [45.016] [SERVICE OF ORDERS OR OTHER PAPERS.] 
           Service of orders or other papers required or permitted to 
        be issued by the commissioner related to the duties and 
        responsibilities entrusted to the commissioner may be by any of 
        the following methods: 
           (1) personal service consistent with requirements for 
        service of a summons or process under section 303.13 or 543.19, 
        or under rule 4.03 of the Minnesota Rules of Civil Procedure; 
           (2) first class United States mail, including certified 
        United States mail, or overnight express mail service, postage 
        prepaid and addressed to the party at the party's last known 
        address.  Service by United States mail, including certified 
        mail, is complete upon placing the order or other paper in the 
        mail or otherwise delivering the order or other paper to the 
        United States mail service.  Service by overnight express mail 
        service is complete upon delivering the order or other document 
        to an authorized agent of the express mail service; or 
           (3) any other method of service provided under the laws 
        relating to duties and responsibilities entrusted to the 
        commissioner. 
           Sec. 4.  Minnesota Statutes 1994, section 45.027, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACTIONS AGAINST LICENSEES.] In addition to any 
        other actions authorized by this section, the commissioner may, 
        by order, deny, suspend, or revoke the authority or license of a 
        person subject to the duties and responsibilities entrusted to 
        the commissioner, as described under section 45.011, subdivision 
        4, or censure that person if the commissioner finds that: 
           (1) the order is in the public interest; and 
           (2) the person has violated any law, rule, or order related 
        to the duties and responsibilities entrusted to the 
        commissioner; or 
           (3) the person has provided false, misleading, or 
        incomplete information to the commissioner or has refused to 
        allow a reasonable inspection of records or premises; or 
           (4) the person has engaged in an act or practice, whether 
        or not the act or practice directly involves the business for 
        which the person is licensed or authorized, which demonstrates 
        that the applicant or licensee is untrustworthy, financially 
        irresponsible, or otherwise incompetent or unqualified to act 
        under the authority or license granted by the commissioner. 
           Except for information classified as confidential under 
        sections 60A.03, subdivision 9; 60A.031; 60A.93; and 60D.22, the 
        commissioner may make any data otherwise classified as private 
        or confidential pursuant to this section accessible to an 
        appropriate person or agency if the commissioner determines that 
        the access will aid the law enforcement process, promote public 
        health or safety, or dispel widespread rumor or unrest.  If the 
        commissioner determines that private or confidential information 
        should be disclosed, the commissioner shall notify the attorney 
        general as to the information to be disclosed, the purpose of 
        the disclosure, and the need for the disclosure.  The attorney 
        general shall review the commissioner's determination.  If the 
        attorney general believes that the commissioner's determination 
        does not satisfy the purpose and intent of this provision, the 
        attorney general shall advise the commissioner in writing that 
        the information may not be disclosed.  If the attorney general 
        believes the commissioner's determination satisfies the purpose 
        and intent of this provision, the attorney general shall advise 
        the commissioner in writing, accordingly. 
           After disclosing information pursuant to this provision, 
        the commissioner shall advise the chairs of the senate and house 
        of representatives judiciary committees of the disclosure and 
        the basis for it. 
           Sec. 5.  Minnesota Statutes 1994, section 45.027, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [CONDITIONS OF RELICENSURE.] A revocation of a 
        license prohibits the licensee from making a new application for 
        a license for at least two years from the effective date of the 
        revocation.  The commissioner may, as a condition of 
        reapplication, require the applicant to obtain a bond or comply 
        with additional reasonable conditions of licensure the 
        commissioner considers necessary to protect the public. 
           Sec. 6.  Minnesota Statutes 1994, section 53A.081, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ANNUAL REPORT.] On or before March 1 April 
        30, a licensee shall file an annual report with the commissioner 
        for the previous calendar year.  The report must contain 
        information that the commissioner may reasonably require 
        concerning, and for the purpose of examining, the business and 
        operations of each licensed currency exchange. 
           Sec. 7.  Minnesota Statutes 1994, section 60K.19, 
        subdivision 7, is amended to read: 
           Subd. 7.  [CRITERIA FOR COURSE ACCREDITATION.] (a) The 
        commissioner may accredit a course only to the extent it is 
        designed to impart substantive and procedural knowledge of the 
        insurance field.  The burden of demonstrating that the course 
        satisfies this requirement is on the individual or organization 
        seeking accreditation.  The commissioner shall approve any 
        educational program approved by Minnesota Continuing Legal 
        Education relating to the insurance field.  The commissioner is 
        authorized to establish a procedure for renewal of course 
        accreditation. 
           (b) The commissioner shall approve or disapprove 
        professional designation examinations that are recommended for 
        approval by the advisory task force.  In order for an agent to 
        receive full continuing education credit for a professional 
        designation examination, the agent must pass the examination.  
        An agent may not receive credit for classroom instruction 
        preparing for the professional designation examination and also 
        receive continuing education credit for passing the professional 
        designation examination. 
           (c) The commissioner may not accredit a course:  
           (1) that is designed to prepare students for a license 
        examination; 
           (2) in mechanical office or business skills, including 
        typing, speedreading, use of calculators, or other machines or 
        equipment; 
           (3) in sales promotion, including meetings held in 
        conjunction with the general business of the licensed agent; 
           (4) in motivation, the art of selling, psychology, or time 
        management; or 
           (5) which can be completed by the student at home or 
        outside the classroom without the supervision of an instructor 
        approved by the department of commerce, except that home-study 
        courses may be accredited by the commissioner if the student is 
        a nonresident agent residing in a state which is not contiguous 
        to Minnesota.  
           Sec. 8.  Minnesota Statutes 1994, section 60K.19, 
        subdivision 8, is amended to read: 
           Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
        subject to this section shall complete a minimum of 30 credit 
        hours of courses accredited by the commissioner during each 
        24-month licensing period after the expiration of his or her 
        initial licensing period.  At least 15 of the 30 credit hours 
        must be completed during the first 12 months of the 24-month 
        licensing period.  Any person whose initial licensing period 
        extends more than six months shall complete 15 hours of courses 
        accredited by the commissioner during the initial license 
        period.  Any person teaching or lecturing at an accredited 
        course qualifies for 1-1/2 times the number of credit hours that 
        would be granted to a person completing the accredited course.  
        No more than 15 credit hours per licensing period may be 
        credited to a person for courses sponsored by, offered by, or 
        affiliated with an insurance company or its agents.  Continuing 
        education must be earned no later than September 30 of the 
        renewal year.  Courses sponsored by, offered by, or affiliated 
        with an insurance company or agent may restrict its students to 
        agents of the company or agency. 
           Sec. 9.  Minnesota Statutes 1994, section 60K.19, 
        subdivision 10, is amended to read: 
           Subd. 10.  [REPORTING.] (a) After completing the minimum 
        education requirement, each person subject to this section shall 
        file or cause to be filed a compliance report in accordance with 
        the procedures adopted by the commissioner.  The compliance 
        report must not claim credit for continuing education not 
        actually completed at the date of filing the report. 
           (b) An institution offering an accredited course shall 
        comply with the procedure for reporting compliance adopted by 
        the commissioner.  
           (c) If a person subject to this section completes a 
        nonaccredited course, that person may submit a written report to 
        the advisory committee accompanied by a fee of not more than $10 
        payable to the state of Minnesota for deposit in the general 
        fund.  This report must be accompanied by proof satisfactory to 
        the commissioner that the person has completed the minimum 
        education requirement for the annual period during which the 
        nonaccredited course was completed.  Upon the recommendation of 
        the advisory committee that the course satisfies the criteria 
        for course accreditation, the commissioner may approve the 
        nonaccredited course and shall so inform the person.  If the 
        nonaccredited course is approved by the commissioner, it may be 
        used to satisfy the minimum education requirement for the 
        person's next annual compliance period.  
           Sec. 10.  Minnesota Statutes 1995 Supplement, section 
        82.20, subdivision 15, is amended to read: 
           Subd. 15.  [EXEMPTION.] The following persons, when acting 
        as closing agents, are exempt from the requirements of sections 
        82.19 and 82.24 unless otherwise required in this section or 
        chapter: 
           (1) a direct employee of a title insurance company 
        authorized to do business in this state, or a direct employee of 
        a title company, or a person who has an agency agreement with 
        a title insurance company or a title company in which the agent 
        agrees to perform closing services on the title insurance 
        company's or title company's behalf and the title insurance 
        company or title company assumes responsibility for the actions 
        of the agent as if the agent were a direct employee of the title 
        insurance company or title company; 
           (2) a licensed attorney or a direct employee of a licensed 
        attorney; 
           (3) a licensed real estate broker or salesperson; 
           (4) a direct employee of a licensed real estate broker if 
        the broker maintains all funds received in connection with the 
        closing services in the broker's trust account; and 
           (5) any bank, trust company, savings association, credit 
        union, industrial loan and thrift company, regulated lender 
        under chapter 56, public utility, or land mortgage or farm loan 
        association organized under the laws of this state or the United 
        States, when engaged in the transaction of businesses within the 
        scope of its corporate powers as provided by law; and 
           (6) a title insurance company authorized to do business in 
        this state or a title company which is the appointed agent of a 
        title insurance company authorized to do business in this state. 
           Sec. 11.  Minnesota Statutes 1995 Supplement, section 
        82.34, subdivision 7, is amended to read: 
           Subd. 7.  When any aggrieved person obtains a final 
        judgment in any court of competent jurisdiction regardless of 
        whether the judgment has been discharged by a bankruptcy court 
        against an individual licensed under this chapter, on grounds of 
        fraudulent, deceptive, or dishonest practices, or conversion of 
        trust funds arising directly out of any transaction when the 
        judgment debtor was licensed and performed acts for which a 
        license is required under this chapter, or performed acts 
        permitted by section 327B.04, subdivision 5, the aggrieved 
        person may, upon the judgment becoming final, and upon 
        termination of all proceedings, including reviews and appeals, 
        file a verified application in the court in which the judgment 
        was entered.  The application shall state with specificity the 
        grounds upon which the application seeks to recover from the 
        fund, and request an order directing payment out of the fund of 
        the amount of actual and direct out of pocket loss in the 
        transaction, but excluding any attorney's fees, interest on the 
        loss and on any judgment obtained as a result of the loss, up to 
        the sum of $150,000 of the amount unpaid upon the judgment, 
        provided that nothing in this chapter shall be construed to 
        obligate the fund for more than $150,000 per claimant, per 
        transaction, subject to the limitations set forth in subdivision 
        14, regardless of the number of persons aggrieved or parcels of 
        real estate involved in the transaction, provided that 
        regardless of the number of claims against a licensee, nothing 
        in this chapter may obligate the fund for more than $250,000 per 
        licensee.  An aggrieved person who has a cause of action under 
        section 80A.23 shall first seek recovery as provided in section 
        80A.05, subdivision 5, before the commissioner may order payment 
        from the recovery fund.  For purposes of this section, persons 
        who are joint tenants or tenants in common are deemed to be a 
        single claimant.  A copy of the verified application shall be 
        served upon the commissioner and upon the judgment debtor, and a 
        certificate or affidavit of service filed with the court.  For 
        the purpose of this section, "aggrieved person" shall does not 
        include a government agency, financial institution, or other 
        entity that purchases, guarantees, or insures a loan secured by 
        real estate, and does not include a licensee unless (1) the 
        licensee is acting in the capacity of principal in the sale of 
        interests in real property owned by the licensee; or (2) the 
        licensee is acting in the capacity of principal in the purchase 
        of interests in real property to be owned by the licensee.  
        Under no circumstances shall a licensee be entitled to payment 
        under this section for the loss of a commission or similar fee.  
           For the purposes of this section, recovery is limited to 
        transactions where the property involved is intended for the 
        direct personal habitation or commercial use of the buyer. 
           Except for securities permitted to be sold by a licensee 
        pursuant to section 82.19, subdivision 7, for any action 
        commenced after July 1, 1993, recovery under this section is not 
        available where the buyer's participation is for investment 
        purposes only, and is limited to providing capital to fund the 
        transaction. 
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        83.26, subdivision 2, is amended to read: 
           Subd. 2.  [GENERALLY; TRANSACTIONS.] Unless the method of 
        offer or sale is adopted for the purpose of evasion of sections 
        83.20 to 83.42, 83.43 and 83.44, the following transactions are 
        exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and 
        83.30:  
           (a) the offer or sale of an interest in subdivided land by 
        an owner, other than the subdivider, acting as principal in a 
        single or isolated transaction; 
           (b) the offer or sale of all of the subdivided lands within 
        a subdivision in a single transaction to any person; 
           (c) the offer or sale of subdivided land pursuant to an 
        order of competent jurisdiction, other than a court of 
        bankruptcy; 
           (d) the offer or sale of subdivided land consisting of not 
        more than ten separate lots, units, parcels, or interests in the 
        aggregate, provided that no subdivider may make an offer or sale 
        of subdivided land pursuant to this exemption more than once 
        during any period of 12 consecutive months; 
           (e) the offer or sale of subdivided lands which have been 
        registered under section 83.23, subdivision 2, if there are no 
        more than ten separate lots, units, parcels, or interests 
        remaining to be sold and no material change has occurred in the 
        information on file with the commissioner; 
           (f) the offer and sale of subdivided land located within 
        the corporate limits of a municipality as defined in section 
        462.352, subdivision 2, which municipality has adopted 
        subdivision regulations as defined in section 462.352, except 
        those lands described in section 83.20, subdivision 13; 
           (g) the offer and sale of apartments or condominium units 
        as defined in chapters 515 and 515A, and units in common 
        interest communities as defined in chapter 515B; 
           (h) the offer and sale of subdivided lands used primarily 
        for agricultural purposes provided each parcel is at least ten 
        acres in size; 
           (i) the offer or sale of improved lots if:  
           (1) the subdivider has filed with the commissioner, no 
        later than ten business days prior to the date of the first 
        sale, a written notice of its intention to offer or sell 
        improved lots, which notice shall be accompanied by a fee of 
        $50, together with a copy of the public offering statement 
        accepted by the situs state and the standard purchase agreement 
        which documents are required to be supplied by the subdivider to 
        the purchaser; and 
           (2) the subdivider deposits all downpayments in an escrow 
        account until all obligations of the subdivider to the 
        purchaser, which are pursuant to the terms of the purchase 
        agreement to be performed prior to the closing, have been 
        performed.  The subdivider shall provide the purchaser with a 
        purchase receipt for the downpayment paid, a copy of the escrow 
        agreement and the name, address, and telephone number of the 
        escrow agent.  The escrow agent shall be a bank located in 
        Minnesota.  All downpayments shall be deposited in the escrow 
        account within two business days after receipt; and 
           (j) the offer of sale of subdivided lands by a subdivider 
        that has been granted an exemption from registration by the 
        federal Department of Housing and Urban Development under the 
        multiple site subdivision exemption, if the subdivider provides 
        a written notice of the offer of sale to the commissioner before 
        any offers or sale commence. 
           The written notice must include the name of the 
        subdivision, the county and state in which the subdivision is 
        located, and the number of lots in the subdivision, and a 
        notarized affidavit that all proposed improvements have been 
        completed and the costs of all the improvements have been fully 
        paid, or that the cost of any uncompleted road construction or 
        survey expenses are covered by a bond or escrow account payable 
        to the entities responsible for providing or completing the 
        roads or surveys.  The escrow account must be with an 
        independent escrow agent. 
           The subdivider must also provide to the commissioner a copy 
        of the federal Housing and Urban Development exemption order and 
        the most recent annual confirmation letter which indicates that 
        the order is still in effect. 
           If the closing services are provided by the subdivider or 
        an affiliate of the subdivider, purchasers must manually initial 
        in the Housing and Urban Development Lot Information Statement 
        both the disclosure on all the liens, reservations, taxes, 
        assessments, easements, and restrictions applicable to the lot 
        purchased and the disclosure on the risks of not obtaining clear 
        title. 
           The commissioner may, by rule or order, suspend, revoke, or 
        further condition the exemptions contained in clauses (f), (g), 
        (h), (i), and (j), or may require such further information as 
        may be necessary for the protection of purchasers. 
           The commissioner may by rule or order suspend, revoke, or 
        further condition the exemptions contained in clauses (f), (g), 
        (h), and (i) or may require such further information as may be 
        necessary for the protection of purchasers.  
           The rulemaking authority in this subdivision does not 
        include emergency rulemaking authority pursuant to chapter 14. 
           Sec. 13.  Minnesota Statutes 1994, section 155A.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [HEALTH AND SANITARY STANDARDS.] Minimum health 
        and sanitary standards for the operation of a salon shall be 
        established by rule.  A salon shall not be located in a room 
        used for residential purposes.  If a salon is in the residence 
        of a person practicing cosmetology, the rooms used for the 
        practice of cosmetology shall be completely partitioned off from 
        the living quarters.  There shall be an inspection at least 
        annually The salon may be inspected as often as the commissioner 
        considers necessary to affirm compliance.  
           Sec. 14.  Minnesota Statutes 1994, section 155A.09, 
        subdivision 7, is amended to read: 
           Subd. 7.  [INSPECTIONS.] All schools shall may be inspected 
        at least once a year as often as the commissioner considers 
        necessary to affirm compliance.  The commissioner shall have the 
        authority to assess the cost of the inspection to the school.  
           Sec. 15.  Minnesota Statutes 1994, section 155A.095, is 
        amended to read: 
           155A.095 [INSPECTIONS.] 
           The commissioner is responsible for inspecting salons and 
        schools licensed pursuant to this chapter to assure compliance 
        with the requirements of this chapter.  The commissioner shall 
        direct department resources first to the inspection of those 
        licensees who fail to meet the requirements of law, have 
        indicated that they present a greater risk to the public, or 
        have otherwise, in the opinion of the commissioner, demonstrated 
        that they require a greater degree of regulatory attention.  In 
        no event shall a salon or school be inspected less often than 
        once each year. 
           Sec. 16.  Minnesota Statutes 1994, section 332.34, is 
        amended to read: 
           332.34 [BOND.] 
           The commissioner of commerce shall require each collection 
        agency licensee to annually file and maintain in force a 
        corporate surety bond, in a form to be prescribed by, and 
        acceptable to, the commissioner, and in the sum of $20,000.  An 
        applicant for a new or renewal license may request that the 
        amount of the bond be reduced to an amount not less than 
        $5,000.  This request may be granted upon a showing that the 
        total dollar amount received from debtors by the collection 
        agency in the preceding fiscal year did not exceed $30,000.  A 
        collection agency may deposit cash in and with a depository 
        acceptable to the commissioner in an amount and in the manner 
        prescribed and approved by the commissioner in lieu of a bond. 
           Sec. 17.  [332.395] [COMMISSIONER'S POWER OVER INEFFECTIVE 
        LICENSES.] 
           If a license lapses, is surrendered, withdrawn, terminated, 
        or otherwise becomes ineffective, the commissioner of commerce 
        may do either or both of the following:  (1) institute a 
        proceeding under section 45.027 within two years after the 
        license was last effective and enter a revocation or suspension 
        order as of the last date on which the license was in effect; 
        (2) impose a civil penalty as provided for in section 45.027, 
        subdivision 6. 
           Sec. 18.  Minnesota Statutes 1994, section 345.41, is 
        amended to read: 
           345.41 [REPORT OF ABANDONED PROPERTY.] 
           (a) Every person holding funds or other property, tangible 
        or intangible, presumed abandoned under sections 345.31 to 
        345.60 shall report annually to the commissioner with respect to 
        the property as hereinafter provided. 
           (b) The report shall be verified and shall include: 
           (1) except with respect to traveler's checks and money 
        orders, the name, if known, and last known address, if any, of 
        each person appearing from the records of the holder to be the 
        owner of any property of the value of $100 or more presumed 
        abandoned under sections 345.31 to 345.60; 
           (2) in case of unclaimed funds of life insurance 
        corporations, the full name of the policyholder, insured or 
        annuitant and that person's last known address according to the 
        life insurance corporation's records; 
           (3) the nature and identifying number, if any, or 
        description of the property and the amount appearing from the 
        records to be due, except that items of value under $100 each 
        may be reported in aggregate; 
           (4) the date when the property became payable, demandable 
        or returnable, and the date of the last transaction with the 
        owner with respect to the property; and 
           (5) other information which the commissioner prescribes by 
        rule as necessary for the administration of sections 345.31 to 
        345.60. 
           (c) If the person holding property presumed abandoned is a 
        successor to other persons who previously held the property for 
        the owner, or if the holder has changed a name while holding the 
        property, the holder shall file with the report all prior known 
        names and addresses of each holder of the property. 
           (d) The report shall be filed before November 1 of each 
        year as of June 30 next preceding, but the report of life 
        insurance corporations shall be filed before October 1 of each 
        year as of December 31 next preceding.  The commissioner may 
        postpone the reporting date upon written request by any person 
        required to file a report. 
           (e) If the holder of property presumed abandoned under 
        sections 345.31 to 345.60 knows the whereabouts of the owner and 
        if the owner's claim has not been barred by the statute of 
        limitations, the holder shall, before filing the annual report, 
        inform the owner of the steps necessary to prevent abandonment 
        from being presumed.  Not more than 120 days before filing the 
        report required by this section, the holder in possession of 
        property abandoned and subject to custody as unclaimed property 
        under this chapter shall send written notice to the presumed 
        owner at that owner's last known address informing the owner 
        that the holder is in possession of property subject to this 
        chapter and advising the owner of the steps necessary to prevent 
        abandonment if: 
           (1) the holder has in its records an address for the 
        presumed owner that the holder's records do not disclose to be 
        inaccurate; 
           (2) the claim of the apparent owner is not barred by the 
        statute of limitations; and 
           (3) the property has a value of $100 or more. 
           (f) Verification, if made by a partnership, shall be 
        executed by a partner; if made by an unincorporated association 
        or private corporation, by an officer, and if made by a public 
        corporation, by its chief fiscal officer. 
           (g) Holders of property described in section 345.32 shall 
        not impose any charges against property which is described in 
        section 345.32, clause (a), (b) or (c). 
           (h) Any person who has possession of property which the 
        person has reason to believe will be reportable in the future as 
        unclaimed property may, with the permission of the commissioner, 
        report and deliver such property prior to the date required for 
        reporting in accordance with this section. 
           Sec. 19.  Minnesota Statutes 1994, section 345.42, is 
        amended to read: 
           345.42 [NOTICE AND PUBLICATION OF LISTS OF ABANDONED 
        PROPERTY.] 
           Subdivision 1.  On or before April 1 of each year Within 
        the calendar year next following the year in which abandoned 
        property has been paid or delivered to the commissioner, the 
        commissioner shall cause notice to be published at least once 
        but not more than twice in an English language newspaper of 
        general circulation in the county in this state in which is 
        located the last known address of any person to be named in the 
        notice.  If no address is listed or if the address is outside 
        this state, the notice shall be published in the county in which 
        the holder of the abandoned property has a principal place of 
        business within this state. 
           Subd. 2.  The published notice shall be entitled "notice of 
        names of persons appearing to be owners of abandoned property," 
        and shall contain: 
           (a) the names in alphabetical order and last known 
        addresses, if any, of persons listed in the report and entitled 
        to notice within the county as hereinbefore specified; 
           (b) a statement that information concerning the amount or 
        description of the property and the name and address of the 
        holder may be obtained by any persons possessing an interest in 
        the property by addressing an inquiry to the 
        commissioner explaining that property of the owner has been 
        presumed to be abandoned and has been taken into the protective 
        custody of the commissioner; and 
           (c) a statement that if proof of claim is not presented by 
        the owner to the holder and if the owner's right to receive the 
        property is not established to the holder's satisfaction within 
        65 days from the date of the second published notice, the 
        abandoned property will be placed not later than 85 days after 
        such publication date in the custody of the commissioner to whom 
        all further claims must thereafter be directed information about 
        the abandoned property and its return to the apparent owner may 
        be obtained at any time by a person having a legal or beneficial 
        interest in that property by making an inquiry to the 
        commissioner. 
           The commissioner is not required to publish in such notice 
        any item of less than $100 unless the commissioner deems such 
        publication to be in the public interest. 
           Subd. 3.  On or before April 1 of each year Within the 
        calendar year next following the year in which abandoned 
        property has been paid or delivered to the commissioner, the 
        commissioner may mail a notice to each person having an address 
        listed therein who appears to be entitled to property of the 
        value of $100 or more presumed abandoned under sections 345.31 
        to 345.60.  Said notice shall contain: 
           (a) a statement that, according to a report filed with the 
        commissioner, property is being held to which the addressee 
        appears entitled; 
           (b) the name and address of the person holding the property 
        and any necessary information regarding changes of name and 
        address of the holder a statement explaining that property of 
        the owner has been presumed to be abandoned and has been taken 
        into the protective custody of the commissioner; and 
           (c) a statement that, if satisfactory proof of claim is not 
        presented by the owner to the holder by the date specified in 
        the published notice, the property will be placed in the custody 
        of the commissioner to whom all further claims must be directed 
        information about the abandoned property and its return to the 
        apparent owner may be obtained at any time by a person having a 
        legal or beneficial interest in that property by making an 
        inquiry to the commissioner. 
           Subd. 4.  This section is not applicable to sums payable on 
        traveler's checks or money orders presumed abandoned under 
        section 345.32. 
           Sec. 20.  Minnesota Statutes 1994, section 345.43, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [HOLDER'S OBLIGATIONS.] At the time of the 
        filing of the report required under section 345.41 and with that 
        report, the holder reporting property presumed abandoned and 
        subject to custody as unclaimed property shall pay or deliver to 
        the commissioner all of the property shown on the report and 
        remaining unclaimed by the apparent owner. 
           Upon written request showing good cause, the commissioner 
        may postpone the payment or delivery upon the terms or 
        conditions the commissioner considers necessary and appropriate. 
           The property paid or delivered to the commissioner shall 
        include all interest, dividends, increments, and accretions due, 
        payable, or distributable on the property on November 1, or 
        October 1 for a life insurance company.  If payment or delivery 
        is postponed, the property paid or delivered to the commissioner 
        shall include accretions due, payable, or distributable on the 
        day that the property is paid or delivered to the commissioner. 
           Sec. 21.  Minnesota Statutes 1994, section 345.515, is 
        amended to read: 
           345.515 [AGREEMENTS TO LOCATE REPORTED PROPERTY.] 
           It is unlawful for a person to seek or receive from another 
        person or contract with a person for a fee or compensation for 
        locating property knowing it to have been reported or paid or 
        delivered to the commissioner pursuant to chapter 345 prior to 
        seven months after the date of delivery of the property by the 
        holder to published notice by the commissioner as required by 
        section 345.43 345.42. 
           No agreement entered into after seven months from the date 
        of delivery of the property by the holder to published notice by 
        the commissioner is valid if a person thereby undertakes to 
        locate property included in a report for a fee or other 
        compensation exceeding ten percent of the value of the 
        recoverable property unless the agreement is in writing and 
        signed by the owner and discloses the nature and value of the 
        property and the name and address of the holder thereof as such 
        facts have been reported.  Nothing in this section shall be 
        construed to prevent an owner from asserting at any time that an 
        agreement to locate property is based upon an excessive or 
        unjust consideration. 
           Sec. 22.  Minnesota Statutes 1994, section 359.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESIDENT NOTARIES.] The governor may 
        appoint and commission as notaries public, by and with the 
        advice and consent of the senate, as many citizens of this state 
        or resident aliens, over the age of 18 years, as the governor 
        considers necessary.  The commissioner of commerce shall perform 
        all duties necessary to appoint and commission notaries public 
        under this section on the governor's behalf. 
           Sec. 23.  Minnesota Statutes 1994, section 359.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NONRESIDENT NOTARIES.] Notwithstanding the 
        provisions of subdivision 1, The governor may appoint as notary 
        public or the commissioner of commerce, acting on the governor's 
        behalf, by and with the advice and consent of the senate, may 
        appoint as notary public a person who is not a resident of this 
        state if: 
           (1) the person is a resident of Wisconsin, Iowa, North 
        Dakota, or South Dakota, and of a county that shares a boundary 
        with this state; 
           (2) the person designates the commissioner as agent for the 
        service of process for all purposes relating to notarial acts 
        and for receipt of all correspondence relating to notarial acts. 
           Sec. 24.  Minnesota Statutes 1994, section 359.02, is 
        amended to read: 
           359.02 [TERM.] 
           A notary commissioned under section 359.01 holds office for 
        five years, unless sooner removed by the governor or the 
        district court, or by action of the commissioner.  Within 30 
        days before the expiration of the commission a notary may be 
        reappointed for a new term to commence and to be designated in 
        the new commission as beginning upon the day immediately 
        following the date of the expiration.  The reappointment takes 
        effect and is valid although the appointing governor may not be 
        in the office of governor on the effective day. 
           (a) All notary commissions issued before January 31, 1995, 
        will expire on January 31, 1995. 
           (b) All notary commissions issued after January 31, 1995, 
        will expire at the end of the licensing period, which will end 
        every fifth year following January 31, 1995. 
           (c) All notary commissions issued during a licensing period 
        expire at the end of that period as set forth in this section. 
           Sec. 25.  Minnesota Statutes 1994, section 359.061, is 
        amended to read: 
           359.061 [RECORD OF COMMISSION; CERTIFICATE.] 
           The commission of every notary shall be recorded in the 
        office of the court administrator of the district court of the 
        notary's county of appointment residence, in a record kept for 
        that purpose.  The court administrator, when requested, shall 
        certify to official acts in the manner and for the fees 
        prescribed by statute or court rule. 
           Sec. 26.  [UNCLAIMED PROPERTY STUDY.] 
           The attorney general, in consultation with the department 
        of commerce, shall study unclaimed property laws and make 
        recommendations to the legislature by December 1, 1996, with 
        respect to legal strategies and improved enforcement tools that 
        the program could implement as a means to maximize the program's 
        ability to collect and return unclaimed property to its proper 
        owners in Minnesota. 
           Sec. 27.  [REPEALER.] 
           Minnesota Statutes 1994, section 345.43, subdivisions 1 and 
        2, are repealed. 
           Sec. 28.  [EFFECTIVE DATES.] 
           Sections 7, 10 to 12, and 26 are effective the day 
        following final enactment. 
                                   ARTICLE 2
                                   SECURITIES
           Section 1.  Minnesota Statutes 1994, section 45.027, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [AUTHORIZED DISCLOSURES OF INFORMATION AND 
        DATA.] The commissioner may release and disclose any active or 
        inactive investigative information and data on licensees to any 
        national securities exchange or national securities association 
        registered under the Securities Exchange Act of 1934 when 
        necessary for the requesting agency in initiating, furthering, 
        or completing an investigation. 
           Sec. 2.  Minnesota Statutes 1994, section 80A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  A broker-dealer, agent or investment 
        adviser may obtain an initial or renewal license by filing with 
        the commissioner or a designee an application together with a 
        consent to service of process pursuant to section 80A.27, 
        subdivision 7.  The application shall be on a form prescribed by 
        the commissioner and shall contain whatever information the 
        commissioner requires concerning such matters as the applicant's 
        form and place of organization, proposed method of doing 
        business and financial condition, the qualifications and 
        experience of the applicant, including, in the case of a 
        broker-dealer or investment adviser, the qualifications and 
        experience of any partner, officer, director or controlling 
        person, any injunction or administrative order or conviction of 
        a misdemeanor involving securities and any conviction of a 
        felony.  The commissioner may by order, with respect to any 
        particular application, require the submission of information 
        concerning any other matters which the commissioner determines 
        are relevant to the application.  The commissioner may by rule 
        or order require an applicant for an initial license to publish 
        an announcement of the application in one or more specified 
        newspapers published in this state. 
           If no denial order is in effect, no proceeding is pending 
        under section 80A.07, and all of the requirements of this 
        subdivision and subdivision 3 have been complied with, the 
        licensing becomes effective 30 days after an application is 
        filed.  The commissioner may by rule or order specify an earlier 
        effective date, and may by order defer the effective date until 
        30 days after the filing of any amendment.  
           An application that is incomplete will be considered 
        withdrawn if no activity occurs with respect to the application 
        for a period of 120 days.  Notwithstanding section 80A.28, 
        subdivision 1, paragraph (c), no part of the filing fee shall be 
        returned if a registration statement is withdrawn according to 
        this subdivision. 
           Sec. 3.  Minnesota Statutes 1994, section 80A.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  If the information contained in any document 
        filed with the commissioner is or becomes inaccurate or 
        incomplete in any material respect, the licensee shall 
        promptly within 30 days file a correcting amendment unless 
        notification of the correction has been given under section 
        80A.04, subdivision 2.  
           Sec. 4.  Minnesota Statutes 1994, section 80A.09, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [WITHDRAWAL.] A registration statement that is 
        incomplete will be considered withdrawn if no activity occurs 
        with respect to the application for a period of 120 days.  
        Notwithstanding section 80A.28, subdivision 1, paragraph (c), no 
        part of the filing fee shall be returned if a registration 
        statement is withdrawn according to this subdivision. 
           Sec. 5.  Minnesota Statutes 1994, section 80A.10, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WITHDRAWAL.] A registration statement that has 
        been on file with the commissioner for a period of nine months 
        and has not become effective is considered to have been 
        withdrawn.  If the registration statement has been amended, the 
        nine-month period must be computed from the date of the latest 
        amendment. is pending effectiveness will be considered withdrawn 
        if no activity occurs with respect to the application for a 
        period of 120 days.  Notwithstanding the provisions of section 
        80A.28, subdivision 1, paragraph (c), no part of the filing fee 
        shall be returned if a registration statement is 
        withdrawn pursuant according to this subdivision. 
           Sec. 6.  Minnesota Statutes 1994, section 80A.11, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [WITHDRAWAL.] A registration statement that is 
        pending effectiveness will be considered withdrawn if no 
        activity occurs with respect to the application for a period of 
        120 days.  Notwithstanding section 80A.28, subdivision 1, 
        paragraph (c), no part of the filing fee shall be returned if a 
        registration statement is withdrawn according to this 
        subdivision. 
           Sec. 7.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 20.  [QUALIFIED CHARITY.] "Qualified charity" means 
        an organization that is described in section 501(c)(3) of the 
        Internal Revenue Code and that is not a private foundation as 
        described in section 509 of the Internal Revenue Code.  
           Sec. 8.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 21.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
        means the Internal Revenue Code of 1986, as amended, United 
        States Code, title 26, section 1 et seq.  
           Sec. 9.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 22.  [POOLED INCOME FUND.] "Pooled income fund" means 
        a trust that meets the requirements of a pooled income fund as 
        defined in section 642(C)(5) of the Internal Revenue Code, 
        provided that the remainder beneficiary is a qualified charity. 
           Sec. 10.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 23.  [CHARITABLE REMAINDER TRUST.] "Charitable 
        remainder trust" means a trust that meets the requirements of 
        either a charitable remainder annuity trust or a charitable 
        remainder unitrust as defined in section 664 of the Internal 
        Revenue Code, provided that the remainder beneficiary is a 
        qualified charity. 
           Sec. 11.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 24.  [CHARITABLE LEAD TRUST.] "Charitable lead trust" 
        means a trust that meets the requirements of a charitable lead 
        trust as described in section 170(F)(2) of the Internal Revenue 
        Code, provided that the lead beneficiary is a qualified charity. 
           Sec. 12.  Minnesota Statutes 1994, section 80A.14, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [CHARITABLE GIFT ANNUITY.] "Charitable gift 
        annuity" means an annuity that meets the requirements of a 
        charitable gift annuity as defined in section 501(m)(5) of the 
        Internal Revenue Code. 
           Sec. 13.  Minnesota Statutes 1995 Supplement, 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, 
        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.  Pursuant to section 106(c) 
        of the Secondary Mortgage Market Enhancement Act of 1984, Public 
        Law Number 98-440, this exemption does not apply to a security 
        that is offered or sold pursuant to section 106(a)(1) or (2) of 
        that act. 
           (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 association, 
        or any savings association 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.  This exemption 
        does not apply to second tier listings on any of the exchanges 
        in this paragraph. 
           (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, profit sharing 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. 
           (m) Any security designated or approved for designation 
        upon notice of issuance on the NASDAQ/National Market System; 
        any other security of the same issuer that is of senior or 
        substantially equal rank; any security called for by 
        subscription rights or warrants so designated or approved; or 
        any warrant or right to purchase or subscribe to any of the 
        securities referred to in this paragraph; provided that the 
        National Market System provides the commissioner with notice of 
        any material change in its designation requirements.  The 
        commissioner may revoke this exemption if the commissioner 
        determines that the designation requirements are not enforced or 
        are amended in a manner that lessens protection to investors. 
           Sec. 14.  Minnesota Statutes 1994, section 80A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  The following transactions are exempted from 
        sections 80A.08 and 80A.16: 
           (a) Any sales, whether or not effected through a 
        broker-dealer, provided that: 
           (1) no person shall make more than ten sales of securities 
        of the same issuer pursuant to this exemption, exclusive of 
        sales according to clause (2), during any period of 12 
        consecutive months; provided further, that in the case of sales 
        by an issuer, except sales of securities registered under the 
        Securities Act of 1933 or exempted by section 3(b) of that 
        act, (1) (i) the seller reasonably believes that all buyers are 
        purchasing for investment, and (2) (ii) the securities are not 
        advertised for sale to the general public in newspapers or other 
        publications of general circulation or otherwise, or by radio, 
        television, electronic means or similar communications media, or 
        through a program of general solicitation by means of mail or 
        telephone.; and 
           (2) no issuer shall make more than 25 sales of its 
        securities according to this exemption, exclusive of sales 
        pursuant to clause (1), during any period of 12 consecutive 
        months; provided further, that the issuer meets the conditions 
        in clause (1) and, in addition meets the following additional 
        conditions:  (i) files with the commissioner, ten days before a 
        sale according to this clause, a statement of issuer on a form 
        prescribed by the commissioner; and (ii) no commission or other 
        remuneration is paid or given directly or indirectly for 
        soliciting any prospective buyers in this state in connection 
        with a sale according to this clause except reasonable and 
        customary commissions paid by the issuer to a broker-dealer 
        licensed under this chapter. 
           (b) Any nonissuer distribution of an outstanding security 
        if (1) either Moody's, Fitch's, or Standard & Poor's Securities 
        Manuals, or other recognized manuals approved by the 
        commissioner contains the names of the issuer's officers and 
        directors, a balance sheet of the issuer as of a date not more 
        than 18 months prior to the date of the sale, and a profit and 
        loss statement for the fiscal year preceding the date of the 
        balance sheet, and (2) the issuer or its predecessor has been in 
        active, continuous business operation for the five-year period 
        next preceding the date of sale, and (3) if the security has a 
        fixed maturity or fixed interest or dividend provision, the 
        issuer has not, within the three preceding fiscal years, 
        defaulted in payment of principal, interest, or dividends on the 
        securities. 
           (c) The execution of any orders by a licensed broker-dealer 
        for the purchase or sale of any security, pursuant to an 
        unsolicited offer to purchase or sell; provided that the 
        broker-dealer acts as agent for the purchaser or seller, and has 
        no direct material interest in the sale or distribution of the 
        security, receives no commission, profit, or other compensation 
        from any source other than the purchaser and seller and delivers 
        to the purchaser and seller written confirmation of the 
        transaction which clearly itemizes the commission, or other 
        compensation. 
           (d) Any nonissuer sale of notes or bonds secured by a 
        mortgage lien if the entire mortgage, together with all notes or 
        bonds secured thereby, is sold to a single purchaser at a single 
        sale. 
           (e) Any judicial sale, exchange, or issuance of securities 
        made pursuant to an order of a court of competent jurisdiction. 
           (f) The sale, by a pledge holder, of a security pledged in 
        good faith as collateral for a bona fide debt. 
           (g) Any offer or sale to a bank, savings institution, trust 
        company, insurance company, investment company as defined in the 
        Investment Company Act of 1940, pension or profit sharing trust, 
        or other financial institution or institutional buyer, or to a 
        broker-dealer, whether the purchaser is acting for itself or in 
        some fiduciary capacity. 
           (h) Any sales by an issuer to the number of persons that 
        shall not exceed 25 persons in this state, or 35 persons if the 
        sales are made in compliance with Regulation D promulgated by 
        the Securities and Exchange Commission, Code of Federal 
        Regulations, title 17, sections 230.501 to 230.506, (other than 
        those designated in paragraph (a) or (g)), whether or not any of 
        the purchasers is then present in this state, if (1) the issuer 
        reasonably believes that all of the buyers in this state (other 
        than those designated in clause (g)) are purchasing for 
        investment, and (2) no commission or other remuneration is paid 
        or given directly or indirectly for soliciting any prospective 
        buyer in this state (other than those designated in clause (g)), 
        except reasonable and customary commissions paid by the issuer 
        to a broker-dealer licensed under this chapter, and (3) the 
        issuer has, ten days prior to any sale pursuant to this 
        paragraph, supplied the commissioner with a statement of issuer 
        on forms prescribed by the commissioner, containing the 
        following information:  (i) the name and address of the issuer, 
        and the date and state of its organization; (ii) the number of 
        units, price per unit, and a description of the securities to be 
        sold; (iii) the amount of commissions to be paid and the persons 
        to whom they will be paid; (iv) the names of all officers, 
        directors and persons owning five percent or more of the equity 
        of the issuer; (v) a brief description of the intended use of 
        proceeds; (vi) a description of all sales of securities made by 
        the issuer within the six-month period next preceding the date 
        of filing; and (vii) a copy of the investment letter, if any, 
        intended to be used in connection with any sale.  Sales that are 
        made more than six months before the start of an offering made 
        pursuant to this exemption or are made more than six months 
        after completion of an offering made pursuant to this exemption 
        will not be considered part of the offering, so long as during 
        those six-month periods there are no sales of unregistered 
        securities (other than those made pursuant to paragraph (a) or 
        (g)) by or for the issuer that are of the same or similar class 
        as those sold under this exemption.  The commissioner may by 
        rule or order as to any security or transaction or any type of 
        security or transaction, withdraw or further condition this 
        exemption, or increase the number of offers and sales permitted, 
        or waive the conditions in clause (1), (2), or (3) with or 
        without the substitution of a limitation or remuneration.  An 
        offer or sale of securities by an issuer made in reliance on the 
        exemptions provided by Rule 505 or 506 of Regulation D 
        promulgated by the Securities and Exchange Commission, Code of 
        Federal Regulations, title 17, sections 230.501 to 230.508, 
        subject to the conditions and definitions provided by Rules 501 
        to 503 of Regulation D, if the offer and sale also satisfies the 
        conditions and limitations in clauses (1) to (10). 
           (1) The exemption under this paragraph is not available for 
        the securities of an issuer if any of the persons described in 
        Rule 252(c) to (f) of Regulation A promulgated by the Securities 
        and Exchange Commission, Code of Federal Regulations, title 17, 
        sections 230.251 to 230.263:  
           (i) has filed a registration statement that is the subject 
        of a currently effective order entered against the issuer, its 
        officers, directors, general partners, controlling persons, or 
        affiliates, according to any state's law within five years 
        before the filing of the notice required under clause (5), 
        denying effectiveness to, or suspending or revoking the 
        effectiveness of, the registration statement; 
           (ii) has been convicted, within five years before the 
        filing of the notice required under clause (5), of a felony or 
        misdemeanor in connection with the offer, sale, or purchase of a 
        security or franchise, or a felony involving fraud or deceit, 
        including but not limited to forgery, embezzlement, obtaining 
        money under false pretenses, larceny, or conspiracy to defraud; 
           (iii) is subject to an effective administrative order or 
        judgment entered by a state securities administrator within five 
        years before the filing of the notice required under clause (5), 
        that prohibits, denies, or revokes the use of an exemption from 
        securities registration, that prohibits the transaction of 
        business by the person as a broker-dealer or agent, or that is 
        based on fraud, deceit, an untrue statement of a material fact, 
        or an omission to state a material fact; or 
           (iv) is subject to an order, judgment, or decree of a court 
        entered within five years before the filing of the notice 
        required under clause (5), temporarily, preliminarily, or 
        permanently restraining or enjoining the person from engaging in 
        or continuing any conduct or practice in connection with the 
        offer, sale, or purchase of a security, or the making of a false 
        filing with a state. 
           A disqualification under paragraph (h) involving a 
        broker-dealer or agent is waived if the broker-dealer or agent 
        is or continues to be licensed in the state in which the 
        administrative order or judgment was entered against the person 
        or if the broker-dealer or agent is or continues to be licensed 
        in this state as a broker-dealer or agent after notifying the 
        commissioner of the act or event causing disqualification. 
           The commissioner may waive a disqualification under 
        paragraph (h) upon a showing of good cause that it is not 
        necessary under the circumstances that use of the exemption be 
        denied. 
           A disqualification under paragraph (h) may be waived if the 
        state securities administrator or agency of the state that 
        created the basis for disqualification has determined, upon a 
        showing of good cause, that it is not necessary under the 
        circumstances that an exemption from registration of securities 
        under the state's laws be denied. 
           It is a defense to a violation of paragraph (h) based upon 
        a disqualification if the issuer sustains the burden of proof to 
        establish that the issuer did not know, and in the exercise of 
        reasonable care could not have known, that a disqualification 
        under paragraph (h) existed. 
           (2) This exemption must not be available to an issuer with 
        respect to a transaction that, although in technical compliance 
        with this exemption, is part of a plan or scheme to evade 
        registration or the conditions or limitations explicitly stated 
        in paragraph (h). 
           (3) No commission, finder's fee, or other remuneration 
        shall be paid or given, directly or indirectly, for soliciting a 
        prospective purchaser, unless the recipient is appropriately 
        registered, or exempt from registration, in this state as a 
        broker-dealer. 
           (4) Nothing in this exemption is intended to or should be 
        in any way construed as relieving issuers or persons acting on 
        behalf of issuers from providing disclosure to prospective 
        investors adequate to satisfy the antifraud provisions of the 
        securities law of Minnesota.  
           (5) The issuer shall file with commissioner a notice on 
        form D as adopted by the Securities and Exchange Commission 
        according to Regulation D, Code of Federal Regulations, title 
        17, section 230.502.  The notice must be filed not later than 15 
        days after the first sale in this state of securities in an 
        offering under this exemption.  Every notice on form D must be 
        manually signed by a person duly authorized by the issuer and 
        must be accompanied by a consent to service of process on a form 
        prescribed by the commissioner.  
           (6) A failure to comply with a term, condition, or 
        requirement of paragraph (h) will not result in loss of the 
        exemption for an offer or sale to a particular individual or 
        entity if the person relying on the exemption shows that:  (i) 
        the failure to comply did not pertain to a term, condition, or 
        requirement directly intended to protect that particular 
        individual or entity, and the failure to comply was 
        insignificant with respect to the offering as a whole; and (ii) 
        a good faith and reasonable attempt was made to comply with all 
        applicable terms, conditions, and requirements of paragraph (h), 
        except that, where an exemption is established only through 
        reliance upon this provision, the failure to comply shall 
        nonetheless constitute a violation of section 80A.08 and be 
        actionable by the commissioner.  
           (7) The issuer, upon request by the commissioner, shall, 
        within ten days of the request, furnish to the commissioner a 
        copy of any and all information, documents, or materials 
        furnished to investors or offerees in connection with the offer 
        and sale according to paragraph (h).  
           (8) Neither compliance nor attempted compliance with the 
        exemption provided by paragraph (h), nor the absence of an 
        objection or order by the commissioner with respect to an offer 
        or sale of securities undertaken according to this exemption, 
        shall be considered to be a waiver of a condition of the 
        exemption or considered to be a confirmation by the commissioner 
        of the availability of this exemption.  
           (9) The commissioner may, by rule or order, increase the 
        number of purchasers or waive any other condition of this 
        exemption.  
           (10) The determination whether offers and sales made in 
        reliance on the exemption set forth in paragraph (h) shall be 
        integrated with offers and sales according to other paragraphs 
        of this subdivision shall be made according to the integration 
        standard set forth in Rule 502 of Regulation D promulgated by 
        the Securities and Exchange Commission, Code of Federal 
        Regulations, title 17, section 230.502.  If not subject to 
        integration according to that rule, offers and sales according 
        to paragraph (h) shall not otherwise be integrated with offers 
        and sales according to other exemptions set forth in this 
        subdivision. 
           (i) Any offer (but not a sale) of a security for which a 
        registration statement has been filed under sections 80A.01 to 
        80A.31, if no stop order or refusal order is in effect and no 
        public proceeding or examination looking toward an order is 
        pending; and any offer of a security if the sale of the security 
        is or would be exempt under this section.  The commissioner may 
        by rule exempt offers (but not sales) of securities for which a 
        registration statement has been filed as the commissioner deems 
        appropriate, consistent with the purposes of sections 80A.01 to 
        80A.31. 
           (j) The offer and sale by a cooperative organized under 
        chapter 308A or under the laws of another state, of its 
        securities when the securities are offered and sold only to its 
        members, or when the purchase of the securities is necessary or 
        incidental to establishing membership in the cooperative, or 
        when such securities are issued as patronage dividends.  This 
        paragraph applies to a cooperative organized under the laws of 
        another state only if the cooperative has filed with the 
        commissioner a consent to service of process under section 
        80A.27, subdivision 7, and has, not less than ten days prior to 
        the issuance or delivery, furnished the commissioner with a 
        written general description of the transaction and any other 
        information that the commissioner requires by rule or otherwise. 
           (l) The issuance and delivery of any securities of one 
        corporation to another corporation or its security holders in 
        connection with a merger, exchange of shares, or transfer of 
        assets whereby the approval of stockholders of the other 
        corporation is required to be obtained, provided, that the 
        commissioner has been furnished with a general description of 
        the transaction and with other information as the commissioner 
        by rule prescribes not less than ten days prior to the issuance 
        and delivery. 
           (m) Any transaction between the issuer or other person on 
        whose behalf the offering is made and an underwriter or among 
        underwriters. 
           (n) The distribution by a corporation of its or other 
        securities to its own security holders as a stock dividend or as 
        a dividend from earnings or surplus or as a liquidating 
        distribution; or upon conversion of an outstanding convertible 
        security; or pursuant to a stock split or reverse stock split. 
           (o) Any offer or sale of securities by an affiliate of the 
        issuer thereof if:  (1) a registration statement is in effect 
        with respect to securities of the same class of the issuer and 
        (2) the offer or sale has been exempted from registration by 
        rule or order of the commissioner.  
           (p) Any transaction pursuant to an offer to existing 
        security holders of the issuer, including persons who at the 
        time of the transaction are holders of convertible securities, 
        nontransferable warrants, or transferable warrants exercisable 
        within not more than 90 days of their issuance, if:  (1) no 
        commission or other remuneration (other than a standby 
        commission) is paid or given directly or indirectly for 
        soliciting any security holder in this state; and (2) the 
        commissioner has been furnished with a general description of 
        the transaction and with other information as the commissioner 
        may by rule prescribe no less than ten days prior to the 
        transaction. 
           (q)  Any nonissuer sales of any security, including a 
        revenue obligation, issued by the state of Minnesota or any of 
        its political or governmental subdivisions, municipalities, 
        governmental agencies, or instrumentalities. 
           (r) Any transaction as to which the commissioner by rule or 
        order finds that registration is not necessary in the public 
        interest and for the protection of investors. 
           (s) An offer or sale of a security issued in connection 
        with an employee's stock purchase, savings, option, profit 
        sharing, pension, or similar employee benefit plan, if the 
        following conditions are met:  
           (1) the issuer, its parent corporation or any of its 
        majority-owned subsidiaries offers or sells the security 
        according to a written benefit plan or written contract relating 
        to the compensation of the purchaser; and 
           (2) the class of securities offered according to the plan 
        or contract, or if an option or right to purchase a security, 
        the class of securities to be issued upon the exercise of the 
        option or right, is registered under section 12 of the 
        Securities Exchange Act of 1934, or is a class of securities 
        with respect to which the issuer files reports according to 
        section 15(d) of the Securities Exchange Act of 1934; or 
           (3) the issuer fully complies with the provisions of Rule 
        701 as adopted by the Securities and Exchange Commission, Code 
        of Federal Regulations, title 12, section 230.701. 
           The issuer shall file not less than ten days before the 
        transaction, a general description of the transaction and any 
        other information that the commissioner requires by rule or 
        otherwise or, if applicable, a Securities and Exchange Form S-8. 
        Annually, within 90 days after the end of the issuer's fiscal 
        year, the issuer shall file a notice as provided with the 
        commissioner. 
           (t) Any sale of a security of an issuer that is a pooled 
        income fund, a charitable remainder trust, or a charitable lead 
        trust that has a qualified charity as the only charitable 
        beneficiary. 
           (u) Any sale by a qualified charity of a security that is a 
        charitable gift annuity if the issuer has a net worth, otherwise 
        defined as unrestricted fund balance, of not less than $300,000 
        and either:  (1) has been in continuous operation for not less 
        than three years; or (2) is a successor or affiliate of a 
        qualified charity that has been in continuous operation for not 
        less than three years. 
           Sec. 15.  Minnesota Statutes 1994, section 80A.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  The commissioner may issue an order requiring any 
        person who claims the benefit of an exemption with respect to a 
        specific security or transaction, to show cause why the 
        exemption should not be revoked.  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.  The commissioner may by order summarily suspend an 
        exemption pending final determination of any order to show 
        cause.  If an exemption 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 person claiming the benefit of the exemption 
        fails to appear at a hearing of which the person has been duly 
        notified, such person shall be deemed in default, and the 
        proceeding may be determined against the person upon 
        consideration of the order to show cause, the allegations of 
        which may be deemed to be true.  The commissioner may adopt 
        rules of procedure concerning all proceedings conducted pursuant 
        to this subdivision.  
           A notice filing that is incomplete is considered withdrawn 
        if no activity occurs with respect to the notice filing for a 
        period of 120 days. 
           Sec. 16.  Minnesota Statutes 1994, section 80C.01, is 
        amended by adding a subdivision to read: 
           Subd. 19.  [ASSIST THE PURCHASER IN FINDING 
        LOCATIONS.] "Assist the purchaser in finding locations" means to 
        directly assist the purchaser in finding locations, or to refer 
        the purchaser to any resource which assists in finding locations 
        and is affiliated with the seller through common ownership, 
        common control, a referral fee arrangement, or any other 
        business relationship.  "Assist the purchaser in finding 
        locations" does not include providing to the purchaser a written 
        list of resources which assist in finding locations, provided 
        that none of the resources on the list are affiliated with the 
        seller in any way. 
           Sec. 17.  Minnesota Statutes 1994, section 80C.05, is 
        amended by adding a subdivision to read: 
           Subd. 4.  An application for registration that has not 
        become effective will be considered withdrawn if no activity 
        occurs with respect to the application for a period of 120 days. 
           Sec. 18.  [REPEALER.] 
           Minnesota Statutes 1994, section 80A.14, subdivision 8, is 
        repealed. 
                                   ARTICLE 3
                                  REAL ESTATE
           Section 1.  Minnesota Statutes 1994, section 82.19, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISCLOSURE REGARDING REPRESENTATION OF PARTIES.] 
        (a) No person licensed pursuant to this chapter or who otherwise 
        acts as a real estate broker or salesperson shall represent any 
        party to a real estate transaction or otherwise act as a real 
        estate broker or salesperson unless that person makes an 
        affirmative written disclosure as to which party that person 
        represents in the transaction.  In a residential real property 
        transaction, the disclosure must be made at the first 
        substantive contact between the licensee and the party or 
        potential party to the transaction.  The disclosure shall be 
        printed as a separate document, and acknowledged by the 
        signature of the buyer, seller, or customer. 
           (b) The disclosure required by this subdivision must be 
        made by the licensee with respect to any residential property 
        transaction:  
           (1) when representing the seller, at the signing of a 
        listing agreement; 
           (2) when representing the buyer, at the signing of a 
        buyer's broker agreement; 
           (3) as to all other parties (potential buyers or sellers) 
        who are not represented by the licensee, before discussion of 
        financial information or the commencement of negotiations, which 
        could affect that party's bargaining position in the transaction.
           A change in the licensee's representation, including dual 
        agency, that makes the initial disclosure required by this 
        paragraph incomplete, misleading, or inaccurate requires that a 
        new disclosure be made at once fail to provide at the first 
        substantive contact with a consumer in a residential real 
        property transaction an agency disclosure form as set forth in 
        section 82.197. 
           (c) (b) The seller may, in the listing agreement, authorize 
        the seller's broker to disburse part of the broker's 
        compensation to other brokers, including the buyer's brokers 
        solely representing the buyer.  A broker representing a buyer 
        shall make known to the seller or the seller's agent the fact of 
        the agency relationship before any showing or negotiations are 
        initiated. 
           Sec. 2.  Minnesota Statutes 1994, section 82.195, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] All listing agreements must be in 
        writing and must include:  
           (1) a definite expiration date; 
           (2) a description of the real property involved; 
           (3) the list price and any terms required by the seller; 
           (4) the amount of any compensation or commission or the 
        basis for computing the commission; 
           (5) a clear statement explaining the events or conditions 
        that will entitle a broker to a commission; 
           (6) information regarding an override clause, if 
        applicable, including a statement to the effect that the 
        override clause will not be effective unless the licensee 
        supplies the seller with a protective list within 72 hours after 
        the expiration of the listing agreement; 
           (7) the following notice in not less than ten point 
        boldface type immediately preceding any provision of the listing 
        agreement relating to compensation of the licensee:  
           "NOTICE:  THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL, 
        OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 
        INDIVIDUAL BROKER AND ITS CLIENT."; 
           (8) if the broker chooses to represent both buyers and 
        sellers in connection with residential property transactions, a 
        for residential property listings, the following "dual agency" 
        disclosure statement: 
           If a buyer represented by broker wishes to buy your 
        property, a dual agency will be created.  This means that broker 
        will represent both you and the buyer(s), and owe the same 
        duties to the buyer(s) that broker owes to you.  This conflict 
        of interest will prohibit broker from advocating exclusively on 
        your behalf.  Dual agency will limit the level of representation 
        broker can provide.  If a dual agency should arise, you will 
        need to agree that confidential information about price, terms, 
        and motivation will still be kept confidential unless you 
        instruct broker in writing to disclose specific information 
        about you.  All other information will be shared.  Broker cannot 
        act as a dual agent unless both you and the buyer(s) agree to 
        it.  By agreeing to a possible dual agency, you will be giving 
        up the right to exclusive representation in an in-house 
        transaction.  However, if you should decide not to agree to a 
        possible dual agency, and you want broker to represent you, you 
        may give up the opportunity to sell your property to buyers 
        represented by broker. 
                       Seller's Instructions to Broker 
           
           Having read and understood this information about dual 
        agency, seller(s) now instructs broker as follows: 
        .......     Seller(s) will agree to a dual agency 
                    representation and will consider offers made 
                    by buyers represented by broker. 
           
        .......     Seller will not agree to a dual agency
                    representation and will not consider offers
                    made by buyers represented by broker. 
           
           
        .........................      ......................... 
        Seller                         Broker 
           
           
        .........................      By:  .................... 
        Seller                              Salesperson 
           
        Date:  ..................; 
           (9) a notice requiring the seller to indicate in writing 
        whether it is acceptable to the seller to have the licensee 
        arrange for closing services or whether the seller wishes to 
        arrange for others to conduct the closing.  The notice must also 
        include the disclosure of any controlled business arrangement, 
        as the term is defined in United States Code, title 12, section 
        2602, between the licensee and the real estate closing agent 
        through which the licensee proposes to arrange closing services; 
        and 
           (10) for residential listings, a notice stating that after 
        the expiration of the listing agreement, the seller will not be 
        obligated to pay the licensee a fee or commission if the seller 
        has executed another valid listing agreement pursuant to which 
        the seller is obligated to pay a fee or commission to another 
        licensee for the sale, lease, or exchange of the real property 
        in question.  This notice may be used in the listing agreement 
        for any other type of real estate.  
           Sec. 3.  Minnesota Statutes 1994, section 82.196, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] Licensees shall obtain a 
        signed buyer's broker agreement from a buyer before performing 
        any acts as a buyer's representative and before a purchase 
        agreement is signed. 
           Sec. 4.  Minnesota Statutes 1994, section 82.196, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] All buyer's broker agreements must be 
        in writing and must include:  
           (1) a definite expiration date; 
           (2) the amount of any compensation or commission, or the 
        basis for computing the commission; 
           (3) a clear statement explaining the services to be 
        provided to the buyer by the broker, and the events or 
        conditions that will entitle a broker to a commission or other 
        compensation; 
           (4) a provision for cancellation of the agreement by either 
        party upon terms agreed upon by the parties; 
           (5) information regarding an override clause, if 
        applicable, including a statement to the effect that the 
        override clause will not be effective unless the licensee 
        supplies the buyer with a protective list within 72 hours after 
        the expiration of the buyer's broker agreement; 
           (6) the following notice in not less than ten point bold 
        face type immediately preceding any provision of the buyer's 
        broker agreement relating to compensation of the licensee: 
           "NOTICE:  THE COMMISSION RATE FOR THE PURCHASE, LEASE, 
        RENTAL, OR MANAGEMENT OF REAL PROPERTY IS NEGOTIABLE AND SHALL 
        BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT."; 
           (7) if the broker chooses to represent both buyers and 
        sellers, a the following "dual agency" disclosure statement: 
           If you choose to purchase a property listed by broker, a 
        dual agency will be created.  This means that broker will 
        represent both you and the seller(s), and owe the same duties to 
        the seller(s) that broker owes to you.  This conflict of 
        interest will prohibit broker from advocating exclusively on 
        your behalf.  Dual agency will limit the level of representation 
        broker can provide.  If a dual agency should arise, you will 
        need to agree that confidential information about price, terms, 
        and motivation will still be kept confidential unless you 
        instruct broker in writing to disclose specific information 
        about you.  All other information will be shared.  Broker cannot 
        act as a dual agent unless both you and the seller(s) agree to 
        it.  By agreeing to a possible dual agency, you will be giving 
        up the right to exclusive representation in an in-house 
        transaction.  However, if you should decide not to agree to a 
        possible dual agency, and you want broker to represent you, you 
        may give up the opportunity to purchase the properties listed by 
        broker. 
                        Buyer's Instructions to Broker 
           
        .......      Buyer(s) will agree to a dual agency representation 
                     and will consider properties listed by broker.
           
        .......      Buyer will not agree to a dual agency 
                     representation and will not consider 
                     properties listed by broker. 
           
           
        .........................      ......................... 
        Buyer                          Broker 
           
        .........................      By:  .................... 
        Buyer                               Salesperson 
           
        Date:  ...................; and 
           (8) for buyer's broker agreements which involve residential 
        real property, a notice stating that after the expiration of the 
        buyer's broker agreement, the buyer will not be obligated to pay 
        the licensee a fee or commission if the buyer has executed 
        another valid buyer's broker agreement pursuant to which the 
        buyer is obligated to pay a fee or commission to another 
        licensee for the purchase, lease, or exchange of real property. 
           Sec. 5.  Minnesota Statutes 1994, section 82.197, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AGENCY DISCLOSURE.] The listing agreement 
        or a buyer's broker agreement must include a clear and complete 
        explanation of how the broker will represent the interests of 
        the seller or buyer, and, if the broker represents both sellers 
        and buyers, state how that representation would be altered in a 
        dual agency situation, and require the seller or buyer to choose 
        whether to authorize the broker to initiate any transaction 
        which would give rise to dual agency.  Disclosure to a customer 
        of a licensee's agency relationship with other parties must be 
        made at a time and in a manner sufficient to protect the 
        customer's bargaining position A real estate broker or 
        salesperson shall provide to a consumer in a residential real 
        property transaction at the first substantive contact with the 
        consumer an agency disclosure form in substantially the form set 
        forth in subdivision 4.  The agency disclosure form shall be 
        intended to provide a description of available options for 
        agency and nonagency relationships, and a description of the 
        role of a licensee under each option.  The agency disclosure 
        form shall provide a signature line for acknowledgment of 
        receipt by the consumer. 
           Sec. 6.  Minnesota Statutes 1994, section 82.197, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CREATION OF DUAL AGENCY.] If circumstances 
        create a dual agency situation, the broker must make full 
        disclosure to all parties to the transaction as to the change in 
        relationship of the parties to the broker due to dual agency.  A 
        broker, having made full disclosure, must obtain the consent of 
        all parties to these circumstances before accepting the dual 
        agency. in residential real property transactions in the 
        purchase agreement in the form set forth below which shall be 
        set off in a boxed format to draw attention to it: 
           
           Broker represents both the seller(s) and the buyer(s) of 
        the property involved in this transaction, which creates a dual 
        agency.  This means that broker and its salespersons owe 
        fiduciary duties to both seller(s) and buyer(s).  Because the 
        parties may have conflicting interests, broker and its 
        salespersons are prohibited from advocating exclusively for 
        either party.  Broker cannot act as a dual agent in this 
        transaction without the consent of both seller(s) and buyer(s).  
        Seller(s) and buyer(s) acknowledge that: 
           (1) confidential information communicated to broker which 
        regards price, terms, or motivation to buy or sell will remain 
        confidential unless seller(s) or buyer(s) instructs broker in 
        writing to disclose this information.  Other information will be 
        shared; 
           (2) broker and its salespersons will not represent the 
        interests of either party to the detriment of the other; and 
           (3) within the limits of dual agency, broker and its 
        salespersons will work diligently to facilitate the mechanics of 
        the sale. 
           With the knowledge and understanding of the explanation 
        above, seller(s) and buyer(s) authorize and instruct broker and 
        its salespersons to act as dual agents in this transaction. 
           
           
        ...........................      ........................... 
        Seller                           Buyer 
           
        ...........................      ........................... 
        Seller                           Buyer 
           
        ...........................      ........................... 
        Date                             Date 
           Sec. 7.  Minnesota Statutes 1994, section 82.197, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SCOPE AND EFFECT.] Disclosures made in 
        accordance with the requirements for disclosure of agency 
        relationships set forth in this chapter are sufficient to 
        satisfy common law disclosure requirements.  In addition, when a 
        principal in the transaction is a licensee or a relative or 
        business associate of the licensee, that fact must be disclosed 
        in writing in addition to any other required disclosures.  The 
        commissioner, in consultation with representatives of the real 
        estate industry, consumer groups, the attorney general's office, 
        and any other group deemed appropriate by the commissioner, 
        shall study current required disclosure forms and recommend any 
        additions that may be necessary to ensure that consumers are 
        informed of the various agency relations and how they affect the 
        consumer.  The commissioner shall prepare legislation for the 
        1995 session which incorporates those recommendations. 
           Sec. 8.  Minnesota Statutes 1994, section 82.197, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AGENCY DISCLOSURE FORMS FORM.] (a) Disclosures 
        of agency relationships The agency disclosure form shall be made 
        in substantially the form set forth in paragraphs (b) to 
        (e) below: 
                      (b) ADDENDUM TO LISTING AGREEMENT 
           ....(Broker).... will be representing you as your broker in 
        the sale of your property located at ......................  
        This relationship is called an agency.  As your agent, 
        ....(Broker).... owes you the duties of loyalty, obedience, 
        disclosure, confidentiality, reasonable care and diligence, and 
        full accounting.  However, ....(Broker).... also represents 
        buyers looking for properties.  If a buyer represented by 
        ....(Broker).... becomes interested in your property, a dual 
        agency will be created.  This means that ....(Broker).... will 
        owe the same duties to the buyer that we owe to you.  This 
        conflict of interest will prohibit ....(Broker).... from 
        advocating exclusively on your behalf when attempting to effect 
        the sale of your property.  Dual agency will limit the level of 
        representation which ....(Broker).... can provide.  
           If a dual agency should arise, you will need to agree that 
        confidential information about price, terms, and motivation will 
        still be kept confidential unless you instruct ....(Broker).... 
        in writing to disclose specific information about you or your 
        property.  All other information will be shared.  Regardless of 
        whether a dual agency occurs, ....(Broker).... must disclose to 
        the buyer any material facts of which ....(Broker).... is aware 
        that may adversely and significantly affect the buyer's use or 
        enjoyment of the property.  In addition, ....(Broker).... must 
        disclose to both parties any information of which 
        ....(Broker).... is aware that a party will not perform in 
        accordance with the terms of the purchase agreement or similar 
        written agreement to convey real estate. 
           ....(Broker).... cannot act as a dual agent unless both you 
        and the buyer agree to the dual agency after it is disclosed to 
        you.  By agreeing to a possible dual agency, you will be giving 
        up the right to exclusive representation in an in-house 
        transaction.  However, if you should decide not to agree to a 
        possible dual agency, and you want ....(Broker).... to represent 
        you, you may give up the opportunity to sell your property to 
        buyers represented by ....(Broker).....  
                        SELLER'S INSTRUCTIONS TO BROKER 
           Having read and understood this information about dual 
        agency, you now instruct ....(Broker).... as follows:  
           .... Seller agrees to dual agency representation and will 
        consider offers made by buyers represented by ....(Broker)..... 
           .... Seller does not agree to dual agency representation 
        and will not consider offers made by buyers represented by 
        ....(Broker)..... 
        ..........................         ........................
        Seller                             (Broker)
        ..........................    BY:  ........................
        Seller                             Salesperson
        Dated:  ..................
                (c) ADDENDUM TO BUYER REPRESENTATION AGREEMENT 
           ....(Broker).... will be representing you as your broker to 
        assist you in finding and purchasing a property.  This 
        relationship is called an agency.  As your agent, 
        ....(Broker).... owes you the duties of loyalty, obedience, 
        disclosure, confidentiality, reasonable care and diligence, and 
        full accounting.  However, ....(Broker).... also represents 
        sellers by listing their property for sale.  If you become 
        interested in a property listed by ....(Broker)...., a dual 
        agency will be created.  This means that ....(Broker).... will 
        owe the same duties to the seller that ....(Broker).... owes to 
        you.  This conflict of interest will prohibit ....(Broker).... 
        from advocating exclusively on your behalf when attempting to 
        effect the purchase of the property.  Dual agency will limit the 
        level of representation ....(Broker).... can provide.  
           If a dual agency should arise, you will need to agree that 
        confidential information about price, terms, and motivation will 
        still be kept confidential unless you instruct ....(Broker).... 
        in writing to disclose specific information about you.  All 
        other information will be shared.  Regardless of whether a dual 
        agency occurs, ....(Broker).... must disclose to the buyer any 
        material facts of which ....(Broker).... is aware that may 
        adversely and significantly affect the buyer's use or enjoyment 
        of the property.  In addition, ....(Broker).... must disclose to 
        both parties any information of which ....(Broker).... is aware 
        that a party will not perform in accordance with the terms of 
        the purchase agreement or similar written agreement to convey 
        real estate. 
           ....(Broker).... cannot act as a dual agent unless both you 
        and the seller agree to the dual agency after it is disclosed to 
        you.  By agreeing to a possible dual agency, you will be giving 
        up the right to exclusive representation in an in-house 
        transaction.  However, if you should decide not to agree to a 
        possible dual agency, and you want ....(Broker).... to represent 
        you, you may give up the opportunity to purchase the properties 
        listed by ....(Broker).....  
                        BUYER'S INSTRUCTIONS TO BROKER 
           Having read and understood this information about dual 
        agency, you now instruct ....(Broker).... as follows:  
           .... Buyer will agree to a dual agency representation and 
        will consider properties listed by ....(Broker).....  
           .... Buyer will not agree to a dual agency representation 
        and will not consider properties listed by ....(Broker)..... 
        ..........................         ........................
        Buyer                              (Broker)
        ..........................    BY:  ........................
        Buyer                              Salesperson
        Dated:  ..................
                          (d) DISCLOSURE TO CUSTOMER 
           Before ....(Broker).... begins to assist you in finding and 
        purchasing a property, we must disclose to you that 
        ....(Broker).... will be representing the seller in the 
        transaction.  
           ....(Broker).... will disclose to you all material facts 
        about the property of which ....(Broker).... is aware, that 
        could adversely and significantly affect your use or enjoyment 
        of the property.  ....(Broker).... will also assist you with the 
        mechanics of the transaction.  
           When it comes to the price and terms of an offer, 
        ....(Broker).... will ask you to make the decision as to how 
        much to offer for any property and upon what terms and 
        conditions.  ....(Broker).... can explain your options to you, 
        but the ultimate decision is yours.  ....(Broker).... will 
        attempt to show you properties in the price range and category 
        you desire so that you will have information on which to base 
        your decision.  
           ....(Broker).... will present to the seller any written 
        offer that you ask ....(Broker).... to present.  
        ....(Broker).... asks you to keep to yourself any information 
        about the price or terms of your offer, or your motivation for 
        making an offer, that you do not want the seller to know.  
        ....(Broker).... would be required, as the seller's agent, to 
        disclose this information to the seller.  You should carefully 
        consider sharing any information with ....(Broker).... that you 
        do not want disclosed to the seller. 
        ..........................         ........................
        Customer                           (Broker)
        ..........................    BY:  ........................
        Customer                           Salesperson
        Dated:  ..................  
                  (e) DISCLOSURE TO BUYER AND SELLER AT TIME 
                             OF OFFER TO PURCHASE
           ....(Broker).... represents the seller at the property 
        located at 
        .................................................................
           ....(Broker).... also represents a buyer who offered to 
        purchase the seller's property.  
           When ....(Broker).... represents both the buyer and the 
        seller in a transaction, a dual agency is created.  This means 
        that ....(Broker).... and its agents owe a fiduciary duty to 
        both buyer and seller.  Because buyer and seller may have 
        conflicting interests, ....(Broker).... and its agents are 
        prohibited from advocating exclusively for either party. 
           ....(Broker).... cannot represent both the buyer and seller 
        in this transaction unless both the buyer and seller agree to 
        this dual agency.  
           Buyer and seller acknowledge and agree that:  
           1.  Confidential information communicated to 
        ....(Broker).... which regards price, terms, or motivation to 
        buy or sell will remain confidential unless buyer or seller 
        instructs ....(Broker).... in writing to disclose this 
        information about the buyer or seller.  Other information will 
        be shared.  
           2.  ....(Broker).... and its salespersons will disclose to 
        buyer all material facts of which they are aware which could 
        adversely and significantly affect the buyer's use or enjoyment 
        of the property or any intended use of the property of which 
        ....(Broker).... or its salespersons are aware (this disclosure 
        is required by law whether or not a dual agency is involved). 
           3.  ....(Broker).... and its salespersons will disclose to 
        both parties all information of which they are aware that either 
        party will not perform in accordance with the terms of the 
        purchase agreement or other written agreement to convey real 
        estate (this disclosure is required by law whether or not a dual 
        agency is involved).  
           4.  ....(Broker).... and its salespersons will not 
        represent the interests of either party to the detriment of the 
        other.  
           5.  Within the limits of dual agency, ....(Broker).... and 
        its salespersons will work diligently to facilitate the 
        mechanics of the sale.  
           With the knowledge and understanding of the explanation 
        above, buyer and seller authorize and instruct ....(Broker).... 
        and its salespersons to act as dual agents in this transaction. 
        ..........................              ........................
        Buyer                                   Seller
        ..........................              ........................
        Buyer                                   Seller
        Date:  ...................              Date:  .................
              AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS
        Minnesota law requires that early in any relationship, real 
        estate brokers or salespersons discuss with consumers what type 
        of agency representation or relationship they desire.(1)  The 
        available options are listed below.  This is not a contract.  
        This is an agency disclosure form only.  If you desire 
        representation, you must enter into a written contract according 
        to state law (a listing contract or a buyer representation 
        contract).  Until such time as you choose to enter into a 
        written contract for representation or assistance, you will be 
        treated as a customer of the broker or salesperson and not 
        represented by the brokerage.  The broker or salesperson would 
        then be acting as a Seller's broker (see paragraph I below), or 
        as a nonagent (see paragraph IV below). 
        I.
           Seller's Broker:  A broker who lists a property, or a 
           salesperson who is licensed to the listing broker, 
           represents the Seller and acts on behalf of the Seller.  A 
           broker or salesperson working with a Buyer may also act as 
           a subagent of the Seller, in which case the Buyer is the 
           broker's customer and is not represented by that broker.  A 
           Seller's broker owes to the Seller the fiduciary duties 
           described below.(2)  The broker must also disclose to the 
           Buyer any material facts of which the broker is aware that 
           could adversely and significantly affect the Buyer's use or 
           enjoyment of the property.  If a broker or salesperson 
           working with a Buyer as a customer is representing the 
           Seller, he or she must act in the Seller(s)' interests and 
           must tell the Seller(s) any information disclosed to 
           him/her.  In that case, the Buyer will not be represented 
           and will not receive advice and counsel from the broker or 
           salesperson. 
        II. 
           Buyer's Broker:  A Buyer may enter into an agreement for 
           the broker or salesperson to represent and act on behalf of 
           the Buyer.  The broker may represent the Buyer only, and 
           not the Seller, even if s/he is being paid in whole or in 
           part by the Seller.  A Buyer's broker owes to the Buyer the 
           fiduciary duties described below.(2)  The broker must 
           disclose to the Buyer any material facts of which the 
           broker is aware that could adversely and significantly 
           affect the Buyer's use or enjoyment of the property. 
        III. 
           Dual Agency-Broker Representing both Seller and Buyer:  
           Dual agency occurs when one broker or salesperson 
           represents both parties to a transaction, or when two 
           salespersons licensed to the same broker each represent a 
           party to the transaction.  Dual agency requires the 
           informed consent of all parties, and means that the broker 
           and salesperson owe the same duties to the Seller and the 
           Buyer.  This role limits the level of representation the 
           broker and salespersons can provide, and prohibits them 
           from acting exclusively for either party.  In a dual 
           agency, confidential information about price, terms, and 
           motivation for pursuing a transaction will be kept 
           confidential unless one party instructs the broker or 
           salesperson in writing to disclose specific information 
           about him or her.  Other information will be shared.  Dual 
           agents may not advocate for one party to the detriment of 
           the other.(3) 
           Within the limitations described above, dual agents owe to 
           both Seller and Buyer the fiduciary duties described 
           below.(2)  Dual agents must disclose to Buyers any material 
           facts of which the broker is aware that could adversely and 
           significantly affect the Buyer's use or enjoyment of the 
           property. 
        IV. 
           Nonagent:  A broker or salesperson may perform services for 
           either party as a nonagent, if that party signs a nonagency 
           services agreement.  As a nonagent the broker or 
           salesperson facilitates the transaction, but does not act 
           on behalf of either party.  THE NONAGENT BROKER OR 
           SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY 
           DUTIES LISTED BELOW, UNLESS THOSE DUTIES ARE INCLUDED IN 
           THE WRITTEN NONAGENCY SERVICES AGREEMENT.  The nonagent 
           broker or salesperson owes only those duties required by 
           law or contained in the written nonagency services 
           agreement. 
        ACKNOWLEDGMENT:  I/We acknowledge that I/We have been presented 
        with the above-described options.  I/We understand that Buyers 
        who have not signed a Buyer representation contract or nonagency 
        services agreement are not represented by the broker/salesperson 
        and information given to the broker/salesperson will be 
        disclosed to the Seller.  I/We understand that written consent 
        is required for a dual agency relationship.  This is a 
        disclosure only, NOT a contract for representation. 
        .........................       ........................ 
          Seller            Date         Buyer              Date
        .........................       ........................ 
          Seller            Date         Buyer              Date 
        **************************************************************** 
           (1) This disclosure is required by law in any transaction 
        involving property occupied or intended to be occupied by one to 
        four families as their residence. 
           (2) The fiduciary duties mentioned above are listed below 
        and have the following meanings: 
           Loyalty-broker/salesperson will act only in client(s)' best 
        interest. 
           Obedience-broker/salesperson will carry out all client(s)' 
        lawful instructions. 
           Disclosure-broker/salesperson will disclose to client(s) 
        all material facts of which broker/salesperson has knowledge 
        which might reasonably affect the client's rights and interests. 
           Confidentiality-broker/salesperson will keep client(s)' 
        confidences unless required by law to disclose specific 
        information (such as disclosure of material facts to Buyers). 
           Reasonable Care-broker/salesperson will use reasonable care 
        in performing duties as an agent. 
           Accounting-broker/salesperson will account to client(s) for 
        all client(s)' money and property received as agent. 
           (3) If Seller(s) decides not to agree to a dual agency 
        relationship, Seller(s) may give up the opportunity to sell the 
        property to Buyers represented by the broker/salesperson.  If 
        Buyer(s) decides not to agree to a dual agency relationship, 
        Buyer(s) may give up the opportunity to purchase properties 
        listed by the broker. 
           Sec. 9.  Minnesota Statutes 1994, section 82.22, 
        subdivision 13, is amended to read: 
           Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
        renewal date, all real estate salespersons and all real estate 
        brokers shall be required to successfully complete 30 hours of 
        real estate continuing education, either as a student or a 
        lecturer, in courses of study approved by the commissioner, 
        during each 24-month license period.  At least 15 of the 30 
        credit hours must be completed during the first 12 months of the 
        24-month licensing period.  Salespersons and brokers whose 
        initial license period extends more than 12 months are required 
        to complete 15 hours of real estate continuing education during 
        the initial license period.  All continuing education must be 
        earned no later than May 31 of the renewal year.  Those 
        licensees who will receive a 12-month license on July 1, 1995, 
        because of the staggered implementation schedule must complete 
        15 hours of real estate continuing education as a requirement 
        for renewal on July 1, 1996.  Licensees may not claim credit for 
        continuing education not actually completed as of the date their 
        report of continuing education compliance is filed. 
           (b) The commissioner shall adopt rules defining the 
        standards for course and instructor approval, and may adopt 
        rules for the proper administration of this subdivision. 
           (c) Any program approved by Minnesota continuing legal 
        education shall be approved by the commissioner of commerce for 
        continuing education for real estate brokers and salespeople if 
        the program or any part thereof relates to real estate.  
           (d) As part of the continuing education requirements of 
        this section, the commissioner shall require that all real 
        estate brokers and salespersons receive: 
           (1) at least two hours of training during each license 
        period in courses in laws or regulations on agency 
        representation and disclosure; and 
           (2) at least two hours of training during each license 
        period in courses in state and federal fair housing laws, 
        regulations, and rules, or other antidiscrimination laws. 
           Clause (1) does not apply to real estate salespersons and 
        real estate brokers engaged solely in the commercial real estate 
        business who file with the commissioner a verification of this 
        status along with the continuing education report required under 
        paragraph (a). 
           (e) The commissioner is authorized to establish a procedure 
        for renewal of course accreditation. 
           Sec. 10.  Minnesota Statutes 1994, section 82A.11, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [CANCELLATION BY HEIR.] A membership camping 
        contract that may be transferred by descent or devise must 
        provide that the heir or devisee may cancel the contract.  
        Cancellation of the contract relieves the heir or devisee of any 
        further obligations under the contract. 
           Sec. 11.  Minnesota Statutes 1994, section 82B.19, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [RENEWAL OF ACCREDITATION.] The commissioner is 
        authorized to establish a procedure for renewal of course 
        accreditation. 
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        386.66, is amended to read: 
           386.66 [BOND OR ABSTRACTER'S LIABILITY INSURANCE POLICY.] 
           Before a license shall be issued, the applicant shall file 
        with the commissioner a an annual bond or abstracter's liability 
        insurance policy for each license year, to be approved by the 
        commissioner, running to the state of Minnesota in the penal sum 
        of at least $100,000 conditioned for the payment by such 
        abstracter of any damages that may be sustained by or accrue to 
        any person by reason of or on account of any error, deficiency 
        or mistake arising wrongfully or negligently in any abstract, or 
        continuation thereof, or in any certificate showing ownership 
        of, or interest in, or liens upon any lands in the state of 
        Minnesota, whether registered or not, made by and issued by such 
        abstracter, provided however, that the aggregate liability of 
        the surety to all persons under such bond shall in no event 
        exceed the amount of such bond.  If the applicant intends to 
        engage in the business of abstracting in any county having more 
        than 200,000 inhabitants, the bond or insurance policy required 
        herein shall be in the penal sum of at least $250,000.  
        Applicants that are title insurance companies regulated by 
        chapter 68A and licensed pursuant to sections 60A.02 and 60A.06, 
        subdivision 1, clause (7), and their employees or those having 
        cash or securities on deposit with the state of Minnesota in an 
        amount equal to the said bond or insurance policy shall be 
        exempt from furnishing the bond or an insurance policy herein 
        required but shall be liable to the same extent as if a bond or 
        insurance policy has been given and filed.  The bond or 
        insurance policy required hereunder shall be written by some 
        surety or other company authorized to do business in this state 
        issuing bonds or abstracter's liability insurance policies and 
        shall be issued for a period of one or more years, and renewed 
        for one or more years year at the date of expiration as 
        principal continues in business.  The aggregate liability of 
        such surety on such bond or insurance policy for all damages 
        shall, in no event, exceed the sum of said bond or insurance 
        policy. 
           Sec. 13.  [EFFECTIVE DATES.] 
           Sections 1 to 8 are effective October 1, 1996.  Sections 9 
        and 11 are effective the day following final enactment. 
                                   ARTICLE 4
                              BUILDING CONTRACTORS
           Section 1.  Minnesota Statutes 1994, section 326.37, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [EXEMPTION.] No license authorized by this 
        section shall be required of any contractor or employee engaged 
        in the work or business of pipe laying outside of buildings if 
        such person is engaged in a business or trade which has 
        traditionally performed such work within the state prior to 
        January 1, 1994. 
           Sec. 2.  Minnesota Statutes 1994, section 326.87, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [RENEWAL OF ACCREDITATION.] The commissioner is 
        authorized to establish a procedure for renewal of course 
        accreditation. 
           Sec. 3.  Minnesota Statutes 1994, section 326.91, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [CERTIFICATE OF EXEMPTION HOLDERS.] For cause 
        shown under subdivision 1 or 2, the commissioner may deny, 
        suspend, or revoke a certificate of exemption issued under 
        section 326.84, subdivision 3, clause (5), in the same manner as 
        a license.  
           Sec. 4.  Minnesota Statutes 1994, section 326.91, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ACTION AGAINST UNLICENSED PERSONS.] Nothing in 
        this section prevents the commissioner from taking actions, 
        including cease and desist actions, against persons required to 
        be licensed under sections 326.83 to 326.991, based on conduct 
        that would provide grounds for administrative action against a 
        licensee under this section. 
           Sec. 5.  Minnesota Statutes 1994, section 326.991, is 
        amended to read: 
           326.991 [EXCEPTION.] 
           Subdivision 1.  The license requirement under section 
        326.84 does not apply to a residential building contractor, 
        residential remodeler, or specialty contractor licensed by the 
        city of St. Paul or the city of Minneapolis and who is 
        performing work within the legal boundaries of one of those 
        municipalities that municipality.  
           This subdivision expires March 31, 2000. 
           Subd. 2.  The commissioner may contract with the city of 
        Minneapolis and the city of St. Paul to administer this 
        licensing program. 
           Sec. 6.  [REPEALER.] 
           Minnesota Statutes 1994, sections 326.95, subdivision 4; 
        326.97, subdivision 3; and 326.99, are repealed. 
           Sec. 7.  [EFFECTIVE DATES.] 
           Sections 1 to 4 and 6 are effective the day following final 
        enactment. 
           Section 5 is effective April 1, 1996. 
                                   ARTICLE 5
                                 MISCELLANEOUS
           Section 1.  Minnesota Statutes 1994, section 47.206, 
        subdivision 1, is amended to read: 
           47.206 [INTEREST RATE OR DISCOUNT POINT AGREEMENTS.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the terms defined in this subdivision have the meanings 
        given them. 
           (a) "Lender" means a person or entity referred to in 
        section 47.20, subdivision 1, a credit union, or a person making 
        a conventional loan as defined under section 47.20, subdivision 
        2, clause (3), or cooperative apartment loan as defined under 
        section 47.20, subdivision 2, clause (4), except that 
        conventional loans or cooperative apartment loans include any 
        loan or advance of credit in an original principal balance of 
        less than $200,000.  "Lender" also means a mortgage broker as 
        defined in paragraph (e). 
           (b) "Loan" means loans and advances of credit authorized 
        under section 47.20, subdivision 1, clauses (1) to (4), and 
        conventional loans as defined under section 47.20, subdivision 
        2, clause (3), or cooperative apartment loans as defined under 
        section 47.20, subdivision 2, clause (4), except that 
        conventional loans or cooperative apartment loans also include 
        all loans and advances of credit in an original principal 
        balance of less than $200,000.  "Loan" does not include a loan 
        or advance of credit secured by a mortgage upon real property 
        containing more than one residential unit or secured by a 
        security interest in shares of more than one residential unit in 
        a building owned or leased by a cooperative apartment 
        corporation. 
           (c) "Borrower" means a natural person who has submitted an 
        application for a loan to a lender. 
           (d) "Interest rate or discount point agreement" or 
        "agreement" means a contract between a lender and a borrower 
        under which the lender agrees, subject to the lender's 
        underwriting and approval requirements, to make a loan at a 
        specified interest rate or number of discount points, or both, 
        and the borrower agrees to make a loan on those terms.  The term 
        also includes an offer by a lender that is accepted by a 
        borrower under which the lender promises to guarantee or lock in 
        an interest rate or number of discount points, or both, for a 
        specific period of time. 
           (e) "Mortgage broker" includes: 
           (1) a person who negotiates mortgage loans as described in 
        section 82.17, subdivision 4, clause (b), if the person does not 
        qualify for the exception set forth in section 82.18, clause 
        (o); 
           (2) the employees of the person; or 
           (3) any person or firm which holds itself out to the public 
        as a mortgage broker, regardless of whether the person or firm 
        holds a limited broker's license pursuant to section 82.20, 
        subdivision 13. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment.
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 11:50 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes