1.1                          A bill for an act 
  1.2             relating to manufactured housing; modifying license 
  1.3             requirements for dealers in manufactured homes; 
  1.4             amending Minnesota Statutes 1996, section 327B.04, 
  1.5             subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 327B.04, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [LICENSE PREREQUISITES.] No application shall be 
  1.10  granted nor license issued until the applicant proves to the 
  1.11  commissioner that:  
  1.12     (a) the applicant has a permanent, established place of 
  1.13  business at each licensed location.  An "established place of 
  1.14  business" means a permanent enclosed building other than a 
  1.15  residence, or a commercial office space, either owned by the 
  1.16  applicant or leased by the applicant for a term of at least one 
  1.17  year, located in an area where zoning regulations allow 
  1.18  commercial activity, and where the books, records and files 
  1.19  necessary to conduct the business are kept and maintained.  The 
  1.20  owner of a licensed manufactured home park who resides in or 
  1.21  adjacent to the park may use the residence as the established 
  1.22  place of business required by this subdivision, unless 
  1.23  prohibited by local zoning ordinance.  
  1.24     If a license is granted, the licensee may use unimproved 
  1.25  lots and premises for sale, storage, and display of manufactured 
  2.1   homes, if the licensee first notifies the commissioner in 
  2.2   writing; 
  2.3      (b) if the applicant desires to sell, solicit or advertise 
  2.4   the sale of new manufactured homes, it has a bona fide contract 
  2.5   or franchise in effect with a manufacturer or distributor of the 
  2.6   new manufactured home it proposes to deal in; 
  2.7      (c) the applicant has secured a surety bond in the amount 
  2.8   of $20,000 for the protection of consumer customers, executed by 
  2.9   the applicant as principal and issued by a surety company 
  2.10  admitted to do business in this state.  The bond shall be 
  2.11  exclusively for the purpose of reimbursing consumer customers 
  2.12  and shall be conditioned upon the faithful compliance by the 
  2.13  applicant with all of the laws and rules of this state 
  2.14  pertaining to the applicant's business as a dealer or 
  2.15  manufacturer, including sections 325D.44, 325F.67 and 325F.69, 
  2.16  and upon the applicant's faithful performance of all its legal 
  2.17  obligations to consumer customers; 
  2.18     (d) the applicant has established a trust account as 
  2.19  required by section 327B.08, subdivision 3, unless the applicant 
  2.20  states in writing its intention to limit its business to 
  2.21  selling, offering for sale, soliciting or advertising the sale 
  2.22  of new manufactured homes; and 
  2.23     (e) the applicant has provided evidence of having had at 
  2.24  least two years' prior experience in the sale of manufactured 
  2.25  homes, working for a licensed dealer, or if approved at the 
  2.26  discretion of the commissioner, two years' prior experience in 
  2.27  the sale of modular homes.  
  2.28     Sec. 2.  [EFFECTIVE DATE.] 
  2.29     This act is effective the day following final enactment.