Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

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