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2005 Minnesota Session Laws

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                            CHAPTER 118-S.F.No. 1636 
                  An act relating to commerce; regulating the powers and 
                  duties of, and annual reporting required for, certain 
                  financial institutions; regulating safe deposit 
                  companies; removing obsolete references to the credit 
                  union advisory task force; regulating residential 
                  mortgage originators; regulating real estate brokers 
                  and salespersons; providing for insurance license 
                  renewals; regulating for the voluntary dissolution of 
                  fraternal benefit societies; prohibiting the deceptive 
                  use of a financial institution name; amending 
                  Minnesota Statutes 2004, sections 47.10, subdivision 
                  1; 47.75; 48.10; 48.15, subdivision 4; 48.512, by 
                  adding a subdivision; 52.062, subdivision 2; 55.10, 
                  subdivision 4; 58.16, subdivision 4; 60A.13, 
                  subdivision 5; 64B.30, by adding a subdivision; 82.17, 
                  subdivisions 10, 18; 82.36, subdivision 4; 82.41, 
                  subdivision 13; 299A.61, subdivision 3; 325F.69, by 
                  adding a subdivision; proposing coding for new law in 
                  Minnesota Statutes, chapter 58; repealing Minnesota 
                  Statutes 2004, section 52.062, subdivision 3; 
                  Minnesota Rules, part 2675.2610, subpart 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 47.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY, APPROVAL, LIMITATIONS.] (a) 
        Except as otherwise specially provided, the net book value of 
        land and buildings for the transaction of the business of the 
        corporation, including parking lots and premises leased to 
        others, shall not be more than as follows:  
           (1) for a bank, trust company, savings bank, or stock 
        savings association, if investment is for acquisition and 
        improvements to establish a new bank banking office, or is for 
        improvements to existing property or acquisition and 
        improvements to adjacent property, approval by the commissioner 
        of commerce is not required if the total investment does not 
        exceed 50 percent of its existing capital stock and paid-in 
        surplus.  Upon written prior approval of the commissioner of 
        commerce, a bank, trust company, savings bank, or stock savings 
        association may invest in the property and improvements in 
        clause (1) or for acquisition of nonadjacent property for 
        expansion or future use, if the aggregate of all such 
        investments does not exceed 100 percent of its existing capital 
        stock and paid-in surplus; 
           (2) for a mutual savings association, five percent of its 
        net assets.  
           (b) For purposes of this subdivision, an intervening 
        highway, street, road, alley, other public thoroughfare, or 
        easement of any kind does not cause two parcels of real property 
        to be nonadjacent. 
           Sec. 2.  Minnesota Statutes 2004, section 47.75, is amended 
        to read: 
           47.75 [LIMITED TRUSTEESHIP.] 
           Subdivision 1.  [RETIREMENT, HEALTH SAVINGS, AND MEDICAL 
        SAVINGS ACCOUNTS.] (a) A commercial bank, savings bank, savings 
        association, credit union, or industrial loan and thrift company 
        may act as trustee or custodian:  
           (1) under the Federal Self-Employed Individual Tax 
        Retirement Act of 1962, as amended,; 
           (2) of a medical savings account under the Federal Health 
        Insurance Portability and Accountability Act of 1996, as 
        amended,; 
           (3) of a health savings account under the Medicare 
        Prescription Drug, Improvement, and Modernization Act of 2003, 
        as amended; and also 
           (4) under the Federal Employee Retirement Income Security 
        Act of 1974, as amended.  
           (b) The trustee or custodian may accept the trust funds if 
        the funds are invested only in savings accounts or time deposits 
        in the commercial bank, savings bank, savings association, 
        credit union, or industrial loan and thrift company.  All funds 
        held in the fiduciary capacity may be commingled by the 
        financial institution in the conduct of its business, but 
        individual records shall be maintained by the fiduciary for each 
        participant and shall show in detail all transactions engaged 
        under authority of this subdivision. 
           Sec. 3.  Minnesota Statutes 2004, section 48.10, is amended 
        to read: 
           48.10 [ANNUAL AUDIT; REPORT.] 
           The board of directors of a bank, bank and trust, or trust 
        company shall annually examine its books, either in person, or 
        by appointing an examining committee, or an auditor, who may be 
        an independent auditor or accountant.  The examining committee 
        or auditor shall be solely responsible to the directors.  A 
        report shall be made to the directors as to the scope of the 
        examination or audit, and also to show those assets, excluding 
        marketable securities and fixed assets, which are carried on the 
        books for more than actual value.  This report shall be retained 
        as a permanent record or incorporated in the minutes of the 
        meeting, and a copy of the report shall be sent to the 
        commissioner of commerce. 
           Sec. 4.  Minnesota Statutes 2004, section 48.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RETIREMENT, HEALTH SAVINGS, AND MEDICAL SAVINGS 
        ACCOUNTS.] (a) A state bank may act as trustee or custodian: 
           (1) of a self-employed retirement plan under the Federal 
        Self-Employed Individual Tax Retirement Act of 1962, as 
        amended,; 
           (2) of a medical savings account under the Federal Health 
        Insurance Portability and Accountability Act of 1996, as 
        amended,; 
           (3) of a health savings account under the Medicare 
        Prescription Drug, Improvement, and Modernization Act of 2003, 
        as amended; and 
           (4) of an individual retirement account under the Federal 
        Employee Retirement Income Security Act of 1974, as amended, if 
        the bank's duties as trustee or custodian are essentially 
        ministerial or custodial in nature and the funds are invested 
        only (1) (i) in the bank's own savings or time deposits; or 
        (2) (ii) in any other assets at the direction of the customer if 
        the bank does not exercise any investment discretion, invest the 
        funds in collective investment funds administered by it, or 
        provide any investment advice with respect to those account 
        assets. 
           (b) Affiliated discount brokers may be utilized by the bank 
        acting as trustee or custodian for self-directed IRAs, if 
        specifically authorized and directed in appropriate documents.  
        The relationship between the affiliated broker and the bank must 
        be fully disclosed.  Brokerage commissions to be charged to the 
        IRA by the affiliated broker should be accurately disclosed.  
        Provisions should be made for disclosure of any changes in 
        commission rates prior to their becoming effective.  The 
        affiliated broker may not provide investment advice to the 
        customer.  
           (c) All funds held in the fiduciary capacity may be 
        commingled by the financial institution in the conduct of its 
        business, but individual records shall be maintained by the 
        fiduciary for each participant and shall show in detail all 
        transactions engaged under authority of this subdivision.  
           (d) The authority granted by this section is in addition 
        to, and not limited by, section 47.75. 
           Sec. 5.  Minnesota Statutes 2004, section 48.512, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [FEDERAL LAW COMPLIANCE.] In lieu of the 
        identification rules in subdivision 2, a financial intermediary 
        may choose to comply with the federal customer identification 
        standards set forth in United States Code, title 31, section 
        5318, and its implementing regulation, Code of Federal 
        Regulations, title 31, section 103.121, as amended from time to 
        time. 
           Sec. 6.  Minnesota Statutes 2004, section 52.062, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUSPENSION.] The commissioner of commerce may 
        suspend the operation of the credit union by giving notice to 
        its board of directors by certified mail with a copy to the 
        advisory council.  Said notice shall include a list of reasons 
        for said suspension and a list of any specific violations of 
        law, bylaw, or rule, and shall specify which operations of the 
        credit union may be continued during the period of suspension.  
        The notice shall also fix a time and place for a hearing before 
        the commissioner of commerce or such person or persons as the 
        commissioner of commerce may designate.  The hearing shall be 
        held within 60 days of the notice of suspension, and the 
        advisory council shall sit at such hearing for the purpose of 
        providing advice and counsel to the commissioner of commerce or 
        a representative.  Evidence may be produced at said hearing by 
        any party thereto, and the commissioner of commerce shall base 
        the decision as to the continued suspension of operation of the 
        credit union upon said evidence.  If the commissioner of 
        commerce decides to continue the suspension, the commissioner 
        shall give notice of the decision to the board of directors of 
        the credit union. 
           Sec. 7.  Minnesota Statutes 2004, section 55.10, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WILL SEARCHES, BURIAL DOCUMENTS PROCUREMENT, AND 
        INVENTORY OF CONTENTS.] (a) Upon being furnished with 
        satisfactory proof of death of a sole lessee or the last 
        surviving co-lessee of a safe deposit box, an employee of the 
        safe deposit company shall open the box and examine the contents 
        in the presence of an individual who appears in person and 
        furnishes an affidavit stating that the individual believes: 
           (1) the box may contain the will or deed to a burial lot or 
        a document containing instructions for the burial of the lessee 
        or that the box may contain property belonging to the estate of 
        the lessee; and 
           (2) the individual is an interested person as defined in 
        this section and wishes to open the box for any one or more of 
        the following purposes: 
           (i) to conduct a will search; 
           (ii) to obtain a document required to facilitate the 
        lessee's wishes regarding body, funeral, or burial arrangements; 
        or 
           (iii) to obtain an inventory of the contents of the box. 
           (b) The safe deposit company may not open the box under 
        this section if it has received a copy of letters of office of 
        the representative of the deceased lessee's estate or other 
        applicable court order.  
           (c) The safe deposit company need not open the box if: 
           (1) the box has previously been opened under this section 
        for the same purpose; 
           (2) the safe deposit company has received notice of a 
        written or oral objection from any person or has reason to 
        believe that there would be an objection; or 
           (3) the lessee's key or combination is not available. 
           (d) For purposes of this section, the term "interested 
        person" means any of the following: 
           (1) a person named as personal representative in a 
        purported will of the lessee; 
           (2) a person who immediately prior to the death of the 
        lessee had the right of access to the box as a deputy; 
           (3) the surviving spouse of the lessee; 
           (4) a devisee of the lessee; 
           (5) an heir of the lessee; 
           (6) a person designated by the lessee in a writing 
        acceptable to the safe deposit company which is filed with the 
        safe deposit company before death; or 
           (7) a state or county agency with a claim authorized by 
        section 256B.15. 
           (e) For purposes of this section, the term "will" includes 
        a will or a codicil. 
           (f) If the box is opened for the purpose of conducting a 
        will search, the safe deposit company shall remove any document 
        that appears to be a will and make a true and correct machine 
        copy thereof, replace the copy in the box, and then deliver the 
        original thereof to the clerk of court for the county in which 
        the lessee resided immediately before the lessee's death, if 
        known to the safe deposit company, otherwise to the clerk of the 
        court for the county in which the safe deposit box is located.  
        The will must be personally delivered or sent by registered 
        mail.  If the interested person so requests, any deed to burial 
        lot or document containing instructions for the burial of the 
        lessee may be copied by the safe deposit box company and the 
        copy or copies thereof delivered to the interested person.  
           (g) If the box is opened for the purpose of obtaining a 
        document required to facilitate the lessee's wishes regarding 
        the body, funeral, or burial arrangements, any such document may 
        be removed from the box and delivered to the interested person 
        with a true and correct machine copy retained in the box.  If 
        the safe deposit box company discovers a document that appears 
        to be a will, the safe deposit company shall act in accordance 
        with paragraph (f). 
           (h) If the box is opened for the purpose of obtaining an 
        inventory of the contents of the box, the employee of the safe 
        deposit company shall make, or cause to be made, an inventory of 
        the contents of the box, to which the employee and the 
        interested person shall attest under penalty of perjury to be 
        correct and complete.  Within ten days of opening the box 
        pursuant to this subdivision, the safe deposit company shall 
        deliver the original inventory of the contents to the court 
        administrator for the county in which the lessee resided 
        immediately before the lessee's death, if known to the safe 
        deposit company, otherwise to the court administrator for the 
        county in which the safe deposit box is located.  The inventory 
        must be personally delivered or sent by registered mail.  If the 
        interested person so requests, the safe deposit company shall 
        make a true and correct copy of any document in the box, and of 
        the completed inventory form, and deliver that copy to the 
        interested person.  If the contents of the box include a 
        document that appears to be a will, the safe deposit company 
        shall act in accordance with paragraph (f). 
           (i) If a box opened for the purpose of conducting an 
        inventory, will search, or burial document search is completely 
        empty, the safe deposit company need not follow the procedures 
        above.  Instead, the employee of the safe deposit company can 
        complete an inventory of the box contents indicating the fact 
        that the box contained nothing.  The form must be signed by the 
        employee and the interested person.  If the interested person so 
        requests, the safe deposit company may provide a copy of the 
        completed inventory form to the interested person.  The 
        interested person shall then complete the documentation needed 
        by the safe deposit company to surrender the empty box.  If 
        another interested person inquires about the box after it has 
        been surrendered, the safe deposit company may state that the 
        deceased renter had previously rented the box and that the box 
        was surrendered because it was empty.  
           (j) The safe deposit company need not ascertain the truth 
        of any statement in the affidavit required to be furnished under 
        this subdivision and when acting in reliance upon an affidavit, 
        it is discharged as if it dealt with the personal representative 
        of the lessee.  The safe deposit company is not responsible for 
        the adequacy of the description of any property included in an 
        inventory of the contents of a safe deposit box, nor for 
        conversion of the property in connection with actions performed 
        under this subdivision, except for conversion by intentional 
        acts of the company or its employees, directors, officers, or 
        agents.  If the safe deposit company is not satisfied that the 
        requirements of this subdivision have been met, it may decline 
        to open the box.  
           (j) (k) No contents of a box other than a will and a 
        document required to facilitate the lessee's wishes regarding 
        body, funeral, or burial arrangements may be removed pursuant to 
        this subdivision.  The entire contents of the box, however, may 
        be removed pursuant to section 524.3-1201. 
           Sec. 8.  [58.125] [PROHIBITION ON SERVICE AS A RESIDENTIAL 
        MORTGAGE ORIGINATOR.] 
           Subdivision 1.  [DEFINITIONS.] (a) "Dishonesty" means 
        directly or indirectly to cheat or defraud; to cheat or defraud 
        for monetary gain or its equivalent; or to wrongfully take 
        property belonging to another in violation of any criminal 
        statute.  Dishonesty includes acts involving want of integrity, 
        lack of probity, or a disposition to distort, cheat, or act 
        deceitfully or fraudulently, and may include crimes which 
        federal, state, or local laws define as dishonest. 
           (b) "Breach of trust" means a wrongful act, use, 
        misappropriation, or omission with respect to any property or 
        fund which has been committed to a person in a fiduciary or 
        official capacity, or the misuse of one's official or fiduciary 
        position to engage in a wrongful act, use, misappropriation, or 
        omission. 
           Subd. 2.  [GENERALLY.] Except with the prior written 
        consent of the commissioner under subdivision 4, any individual, 
        who has been convicted of a criminal offense involving 
        dishonesty or a breach of trust or money laundering, or has 
        agreed to or entered into a pretrial diversion or similar 
        program in connection with a prosecution for such offense, may 
        not serve as a residential mortgage originator or be employed in 
        that capacity by a person licensed as a mortgage originator. 
           Subd. 3.  [DE MINIMIS OFFENSES.] Approval is automatically 
        granted and an application will not be required if the covered 
        offense is considered de minimis because it meets all of the 
        following criteria: 
           (1) there is only one conviction or program entry of record 
        for a covered offense; 
           (2) the offense was punishable by imprisonment for a term 
        of less than one year and/or a fine of less than $1,000, and the 
        individual did not serve time in jail; 
           (3) the conviction or program was entered at least five 
        years before the date an application would otherwise be 
        required; and 
           (4) the offense did not involve a financial institution or 
        residential mortgage loans. 
           Subd. 4.  [PRIOR CONSENT.] (a) An application for prior 
        consent of the commissioner under this section must be in 
        writing, under oath, and on a form obtained from and prescribed 
        by the commissioner.  The following factors must be considered 
        by the commissioner when reviewing an application: 
           (1) the specific nature of the offense and the 
        circumstances surrounding the offense; 
           (2) evidence of rehabilitation since the offense; 
           (3) the age of the person at the time of conviction; and 
           (4) whether or not restitution has been made. 
           (b) The receipt by an individual of prior consent of the 
        commissioner under this section must not be construed as 
        imposing upon an employer an affirmative obligation to employ 
        that individual in any capacity.  Nothing in this section 
        precludes an employer from denying employment based upon the 
        existence of a criminal offense specified in subdivision 2 or 
        for any other lawful reason. 
           Sec. 9.  Minnesota Statutes 2004, section 58.16, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TRUST ACCOUNT.] The residential mortgage 
        originator shall deposit in a trust account within three 
        business days all fees received before the time a loan is 
        actually funded.  The trust account must be in a financial 
        institution located within the state of Minnesota, and, with 
        respect to advance fees, the account must be controlled by an 
        unaffiliated accountant, attorney, or bank officer or employee. 
           Sec. 10.  Minnesota Statutes 2004, section 60A.13, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RENEWAL LICENSE BASED ON APPROVED STATEMENT.] 
        Upon the approval of the statement the commissioner shall issue 
        a renewal license for the succeeding year beginning June first.  
        Any license to a company or its agent, issued after the approval 
        of the statement, shall expire May 31 of the year 
        following.  The license issued by the commissioner is perpetual 
        and is considered renewed annually on June 1 upon payment of the 
        renewal license fee, the annual filing fee, and all other fees 
        required by section 60A.14. 
           Sec. 11.  Minnesota Statutes 2004, section 64B.30, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [VOLUNTARY DISSOLUTION.] Upon application to the 
        commissioner, a domestic society may request that it be 
        dissolved and that its existence be terminated.  Such 
        application shall demonstrate that the applicant has satisfied 
        its members' policy obligations or that it has transferred such 
        obligations to another society, domestic or foreign, by means of 
        assumption or bulk reinsurance or otherwise, that the 
        applicant's supreme governing body has approved such termination 
        and dissolution and that the application includes such other 
        information that the commissioner requires.  Any limitation in 
        section 64B.13 related to reinsurance by a domestic society with 
        another society shall not apply to reinsurance entered into in 
        conjunction with the transfer of member policy obligations as a 
        part of a voluntary dissolution.  Upon the approval of the 
        application by the commissioner, the society shall be deemed 
        dissolved and its existence terminated upon the date set forth 
        in the application. 
           Sec. 12.  Minnesota Statutes 2004, section 82.17, 
        subdivision 10, is amended to read: 
           Subd. 10.  [LOAN BROKER.] "Loan broker" means a licensed 
        real estate broker or salesperson who, for another and for a 
        commission, fee, or other valuable consideration an advance fee 
        or with the intention or expectation of receiving the same, 
        directly or indirectly, negotiates or offers or attempts to 
        negotiate a loan secured or to be secured by a mortgage or other 
        encumbrance on real estate, or represents himself or herself or 
        otherwise holds himself or herself out as a licensed real estate 
        broker or salesperson, either in connection with any transaction 
        in which he or she directly or indirectly negotiates or offers 
        or attempts to negotiate a loan, or in connection with the 
        conduct of his or her ordinary business activities as a loan 
        broker. 
           "Loan broker" does not include a licensed real estate 
        broker or salesperson who, in the course of representing a 
        purchaser or seller of real estate, incidentally assists the 
        purchaser or seller in obtaining financing for the real property 
        in question if the licensee does not receive a separate 
        commission, fee, or other valuable consideration for this 
        service. 
           For the purposes of this subdivision, an "advance fee" 
        means a commission, fee, charge, or compensation of any kind 
        paid before the closing of a loan, that is intended in whole or 
        in part as payment for finding or attempting to find a loan for 
        a borrower.  Advance fee does not include pass-through fees or 
        commitment or extended lock fees or other fees as determined by 
        the commissioner. 
           Sec. 13.  Minnesota Statutes 2004, section 82.17, 
        subdivision 18, is amended to read: 
           Subd. 18.  [REAL ESTATE BROKER; BROKER.] "Real estate 
        broker" or "broker" means any person who: 
           (a) for another and for commission, fee, or other valuable 
        consideration or with the intention or expectation of receiving 
        the same directly or indirectly lists, sells, exchanges, buys or 
        rents, manages, or offers or attempts to negotiate a sale, 
        option, exchange, purchase or rental of an interest or estate in 
        real estate, or advertises or holds out as engaged in these 
        activities; 
           (b) for another and for commission, fee, or other valuable 
        consideration or with the intention or expectation of receiving 
        the same directly or indirectly negotiates or offers or attempts 
        to negotiate a loan, secured or to be secured by a mortgage or 
        other encumbrance on real estate, which is not a residential 
        mortgage loan as defined by section 58.02, subdivision 18; 
           (c) "real estate broker" or "broker" as set forth in clause 
        (b) shall not apply to the originating, making, processing, 
        selling, or servicing of a loan in connection with the broker's 
        ordinary business activities by of a mortgagee, lender, or 
        servicer approved or certified by the secretary of Housing and 
        Urban Development, or approved or certified by the administrator 
        of Veterans Affairs, or approved or certified by the 
        administrator of the Farmers Home Administration, or approved or 
        certified as a multifamily seller/servicer by the Federal Home 
        Loan Mortgage Corporation, or as a multifamily partner approved 
        or certified by the Federal National Mortgage Association; 
           (d) for another and for commission, fee, or other valuable 
        consideration or with the intention or expectation of receiving 
        the same directly or indirectly lists, sells, exchanges, buys, 
        rents, manages, offers or attempts to negotiate a sale, option, 
        exchange, purchase or rental of any business opportunity or 
        business, or its good will, inventory, or fixtures, or any 
        interest therein; 
           (e) for another and for commission, fee, or other valuable 
        consideration or with the intention or expectation of receiving 
        the same directly or indirectly offers, sells or attempts to 
        negotiate the sale of property that is subject to the 
        registration requirements of chapter 83, concerning subdivided 
        land; 
           (f) for another and for commission, fee, or other valuable 
        consideration or with the intention or expectation of receiving 
        the same, promotes the sale of real estate by advertising it in 
        a publication issued primarily for this purpose, if the person:  
           (1) negotiates on behalf of any party to a transaction; 
           (2) disseminates any information regarding the property to 
        any party or potential party to a transaction subsequent to the 
        publication of the advertisement, except that in response to an 
        initial inquiry from a potential purchaser, the person may 
        forward additional written information regarding the property 
        which has been prepared prior to the publication by the seller 
        or broker or a representative of either; 
           (3) counsels, advises, or offers suggestions to the seller 
        or a representative of the seller with regard to the marketing, 
        offer, sale, or lease of the real estate, whether prior to or 
        subsequent to the publication of the advertisement; 
           (4) counsels, advises, or offers suggestions to a potential 
        buyer or a representative of the seller with regard to the 
        purchase or rental of any advertised real estate; or 
           (5) engages in any other activity otherwise subject to 
        licensure under this chapter; 
           (g) engages wholly or in part in the business of selling 
        real estate to the extent that a pattern of real estate sales is 
        established, whether or not the real estate is owned by the 
        person.  A person shall be presumed to be engaged in the 
        business of selling real estate if the person engages as 
        principal in five or more transactions during any 12-month 
        period, unless the person is represented by a licensed real 
        estate broker or salesperson. 
           Sec. 14.  Minnesota Statutes 2004, section 82.36, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ESCROW ACCOUNT.] The loan broker shall deposit 
        in an escrow account within 48 hours all fees received prior to 
        the time a loan is actually funded.  The escrow account shall be 
        in a bank located within the state of Minnesota and shall be 
        controlled by an unaffiliated accountant, lawyer, or bank 
        officer or employee. 
           Sec. 15.  Minnesota Statutes 2004, section 82.41, 
        subdivision 13, is amended to read: 
           Subd. 13.  [FRAUDULENT, DECEPTIVE, AND DISHONEST 
        PRACTICES.] (a) [PROHIBITIONS.] For the purposes of section 
        82.40 82.35, subdivision 1, clause (b), the following acts and 
        practices constitute fraudulent, deceptive, or dishonest 
        practices: 
           (1) act on behalf of more than one party to a transaction 
        without the knowledge and consent of all parties; 
           (2) act in the dual capacity of licensee and undisclosed 
        principal in any transaction; 
           (3) receive funds while acting as principal which funds 
        would constitute trust funds if received by a licensee acting as 
        an agent, unless the funds are placed in a trust account.  Funds 
        need not be placed in a trust account if a written agreement 
        signed by all parties to the transaction specifies a different 
        disposition of the funds, in accordance with section 82.35, 
        subdivision 1; 
           (4) violate any state or federal law concerning 
        discrimination intended to protect the rights of purchasers or 
        renters of real estate; 
           (5) make a material misstatement in an application for a 
        license or in any information furnished to the commissioner; 
           (6) procure or attempt to procure a real estate license for 
        himself or herself or any person by fraud, misrepresentation, or 
        deceit; 
           (7) represent membership in any real estate-related 
        organization in which the licensee is not a member; 
           (8) advertise in any manner that is misleading or 
        inaccurate with respect to properties, terms, values, policies, 
        or services conducted by the licensee; 
           (9) make any material misrepresentation or permit or allow 
        another to make any material misrepresentation; 
           (10) make any false or misleading statements, or permit or 
        allow another to make any false or misleading statements, of a 
        character likely to influence, persuade, or induce the 
        consummation of a transaction contemplated by this chapter; 
           (11) fail within a reasonable time to account for or remit 
        any money coming into the licensee's possession which belongs to 
        another; 
           (12) commingle with his or her own money or property trust 
        funds or any other money or property of another held by the 
        licensee; 
           (13) demand from a seller a commission to compensation 
        which the licensee is not entitled, knowing that he or she is 
        not entitled to the commission compensation; 
           (14) pay or give money or goods of value to an unlicensed 
        person for any assistance or information relating to the 
        procurement by a licensee of a listing of a property or of a 
        prospective buyer of a property (this item does not apply to 
        money or goods paid or given to the parties to the transaction); 
           (15) fail to maintain a trust account at all times, as 
        provided by law; 
           (16) engage, with respect to the offer, sale, or rental of 
        real estate, in an anticompetitive activity; 
           (17) represent on advertisements, cards, signs, circulars, 
        letterheads, or in any other manner, that he or she is engaged 
        in the business of financial planning unless he or she provides 
        a disclosure document to the client.  The document must be 
        signed by the client and a copy must be left with the client.  
        The disclosure document must contain the following: 
           (i) the basis of fees, commissions, or other compensation 
        received by him or her in connection with rendering of financial 
        planning services or financial counseling or advice in the 
        following language: 
           "My compensation may be based on the following: 
           (a) ... commissions generated from the products I sell you; 
           (b) ... fees; or 
           (c) ... a combination of (a) and (b).  [Comments]"; 
           (ii) the name and address of any company or firm that 
        supplies the financial services or products offered or sold by 
        him or her in the following language: 
           "I am authorized to offer or sell products and/or services 
        issued by or through the following firm(s): 
           [List] 
           The products will be traded, distributed, or placed through 
        the clearing/trading firm(s) of: 
           [List]"; 
           (iii) the license(s) held by the person under this chapter 
        or chapter 60A or 80A in the following language: 
           "I am licensed in Minnesota as a(n): 
           (a) ... insurance agent; 
           (b) ... securities agent or broker/dealer; 
           (c) ... real estate broker or salesperson; 
           (d) ... investment adviser"; and 
           (iv) the specific identity of any financial products or 
        services, by category, for example mutual funds, stocks, or 
        limited partnerships, the person is authorized to offer or sell 
        in the following language: 
           "The license(s) entitles me to offer and sell the following 
        products and/or services: 
           (a) ... securities, specifically the following:  [List]; 
           (b) ... real property; 
           (c) ... insurance; and 
           (d) ... other:  [List]." 
           (b) [DETERMINING VIOLATION.] A licensee shall be deemed to 
        have violated this section if the licensee has been found to 
        have violated sections 325D.49 to 325D.66, by a final decision 
        or order of a court of competent jurisdiction. 
           (c) [COMMISSIONER'S AUTHORITY.] Nothing in this section 
        limits the authority of the commissioner to take actions against 
        a licensee for fraudulent, deceptive, or dishonest practices not 
        specifically described in this section. 
           Sec. 16.  Minnesota Statutes 2004, section 299A.61, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LIMIT ON LIABILITY OF FINANCIAL INSTITUTION.] A 
        financial institution, including its employees or company 
        agents, that provides or reasonably attempts to 
        provide information regarding stolen, forged, or 
        fraudulent check information checks for use by the crime alert 
        network, check verification services, consumer reporting 
        agencies, a banking industry antifraud database consistent with 
        federal privacy law, or by law enforcement agencies that are 
        investigating a crime is not liable to any person for disclosing 
        the information, provided that the financial institution is 
        acting in good faith. 
           Sec. 17.  Minnesota Statutes 2004, section 325F.69, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [DECEPTIVE USE OF FINANCIAL INSTITUTION NAME.] No 
        person shall include the name, trade name, logo, or tagline of a 
        financial institution as defined in section 49.01, subdivision 
        2, in a written solicitation for financial services directed to 
        a customer who has obtained a loan from the financial 
        institution without written permission from the financial 
        institution, unless the solicitation clearly and conspicuously 
        states that the person is not sponsored by or affiliated with 
        the financial institution, which shall be identified by name.  
        This statement shall be made in close proximity to, and in the 
        same or larger font size as, the first and most prominent use or 
        uses of the name, trade name, logo, or tagline in the 
        solicitation, including on an envelope or through an envelope 
        window containing the solicitation.  For purposes of this 
        section, the term "financial institution" includes a financial 
        institution's affiliates and subsidiaries.  This subdivision 
        shall not prohibit the use of a financial institution name, 
        trade name, logo, or tagline of a financial institution if the 
        use of that name is part of a fair and accurate comparison of 
        like products or services. 
           Sec. 18.  [REPEALER.] 
           (a) Minnesota Statutes 2004, section 52.062, subdivision 3, 
        is repealed. 
           (b) Minnesota Rules, part 2675.2610, subpart 5, is repealed.
           Sec. 19.  [EFFECTIVE DATE.] 
           Section 8 is effective January 1, 2006. 
           Presented to the governor May 24, 2005 
           Signed by the governor May 27, 2005, 3:05 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569