1.1                          A bill for an act
  1.2             relating to commerce; regulating currency exchanges, 
  1.3             real estate brokers, real property appraisers, 
  1.4             subdivided land sales licenses, residential 
  1.5             contractors, and collection agencies; modifying 
  1.6             certain continuing education requirements; regulating 
  1.7             certain fees, costs, duties, rights, and penalties; 
  1.8             regulating nonprofit corporations; amending Minnesota 
  1.9             Statutes 2000, sections 45.0295; 53A.081, subdivision 
  1.10            2; 60K.19, subdivision 8; 72B.04, subdivisions 6, 7; 
  1.11            80B.03, subdivision 4a; 82.195, subdivision 2; 82.196, 
  1.12            subdivision 2; 82.197, subdivisions 1, 4, by adding a 
  1.13            subdivision; 82.22, subdivision 13; 82.24, subdivision 
  1.14            8; 82.27, subdivision 3; 82.34, subdivision 15; 
  1.15            82B.14; 83.25, subdivision 1; 317A.203; 326.91, 
  1.16            subdivision 1; 326.975, subdivision 1; 332.41; 359.02; 
  1.17            507.45, subdivision 3. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 2000, section 45.0295, is 
  1.20  amended to read: 
  1.21     45.0295 [FEES.] 
  1.22     (a) The following fees shall be paid to the commissioner: 
  1.23     (1) for each hour or fraction of one hour of education 
  1.24  course approval for continuing education sought, $10; and 
  1.25     (2) for each continuing education course coordinator 
  1.26  approval, $100. 
  1.27     (b) All fees paid to the commissioner under this section 
  1.28  are nonrefundable, except that an overpayment of a fee shall be 
  1.29  returned upon proper application. 
  1.30     Sec. 2.  Minnesota Statutes 2000, section 53A.081, 
  1.31  subdivision 2, is amended to read: 
  2.1      Subd. 2.  [INVESTIGATION.] The commissioner may at any time 
  2.2   and shall at least once in each year investigate the currency 
  2.3   exchange business of any licensee and of every person, 
  2.4   partnership, association, and corporation engaged in the 
  2.5   business of operating a currency exchange in the manner provided 
  2.6   under section 45.027. 
  2.7      Sec. 3.  Minnesota Statutes 2000, section 60K.19, 
  2.8   subdivision 8, is amended to read: 
  2.9      Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
  2.10  subject to this section shall complete a minimum of 30 credit 
  2.11  hours of courses accredited by the commissioner during each 
  2.12  24-month licensing period.  Any person whose initial licensing 
  2.13  period extends more than six months shall complete 15 hours of 
  2.14  courses accredited by the commissioner during the initial 
  2.15  license period.  Any person teaching or lecturing at an 
  2.16  accredited course qualifies for 1-1/2 three times the number of 
  2.17  credit hours that would be granted to a person completing the 
  2.18  accredited course.  No more than 15 credit hours per licensing 
  2.19  period may be credited to a person for courses sponsored by, 
  2.20  offered by, or affiliated with an insurance company or its 
  2.21  agents.  Courses sponsored by, offered by, or affiliated with an 
  2.22  insurance company or agent may restrict its students to agents 
  2.23  of the company or agency. 
  2.24     Sec. 4.  Minnesota Statutes 2000, section 72B.04, 
  2.25  subdivision 6, is amended to read: 
  2.26     Subd. 6.  [EXCEPTIONS.] A person who on January 1, 1972, 
  2.27  meets all of the qualifications specified in subdivision 2 with 
  2.28  regard to the class of license applied for and, if experience is 
  2.29  one of the requisites, has gained the experience within the 
  2.30  three years next preceding January 1, 1972, shall be eligible 
  2.31  for the issuance of a license without taking an examination. 
  2.32     A person who has held a license of any given class or in 
  2.33  any field or fields within three years prior to the application 
  2.34  shall be entitled to a renewal of the license in the same class 
  2.35  or in the same fields without taking an examination. 
  2.36     A person applying for a license as a crop hail adjuster 
  3.1   shall not be required to comply with the requirements of 
  3.2   subdivision 5. 
  3.3      The commissioner may issue a license under sections 72B.01 
  3.4   to 72B.14 without an examination, if the applicant presents 
  3.5   sufficient and satisfactory evidence of having passed a similar 
  3.6   examination in another state and if the commissioner, with the 
  3.7   advice of the advisory board, has determined that the standards 
  3.8   of such other state are equivalent to those in Minnesota for the 
  3.9   class of license applied for.  Any applicant who presents 
  3.10  sufficient and satisfactory evidence of having successfully 
  3.11  completed all six parts of the insurance institute of America 
  3.12  program in adjusting or other programs approved by the 
  3.13  commissioner shall be entitled to an adjuster's license without 
  3.14  taking the examination prescribed in subdivision 5. 
  3.15     Sec. 5.  Minnesota Statutes 2000, section 72B.04, 
  3.16  subdivision 7, is amended to read: 
  3.17     Subd. 7.  [LICENSE TERM.] Every adjuster's and public 
  3.18  adjuster solicitor's license shall be for a term expiring on 
  3.19  October 31 next following the date of its issuance, and may be 
  3.20  renewed for the ensuing calendar year upon the timely filing of 
  3.21  an application for renewal.  (a) Initial licenses issued under 
  3.22  this section are valid for a period not to exceed two years.  
  3.23  Each initial license must expire on October 31 of the expiration 
  3.24  year assigned by the commissioner. 
  3.25     (b) Licenses issued under this section may be renewed upon 
  3.26  the timely filing of an application for renewal.  Every renewal 
  3.27  license is valid for a period of 24 months. 
  3.28     Sec. 6.  Minnesota Statutes 2000, section 80B.03, 
  3.29  subdivision 4a, is amended to read: 
  3.30     Subd. 4a.  Within three calendar business days of the date 
  3.31  of filing of the registration statement, the commissioner may by 
  3.32  order summarily suspend the effectiveness of the takeover offer 
  3.33  if the commissioner determines that the registration statement 
  3.34  does not contain all of the information specified in 
  3.35  subdivisions 2 and 6 or that the takeover offer materials 
  3.36  provided to offerees do not provide full disclosure to offerees 
  4.1   of all material information concerning the takeover offer.  The 
  4.2   suspension shall remain in effect only until the determination 
  4.3   following a hearing held pursuant to subdivision 5.  
  4.4      Sec. 7.  Minnesota Statutes 2000, section 82.195, 
  4.5   subdivision 2, is amended to read: 
  4.6      Subd. 2.  [CONTENTS.] All listing agreements must be in 
  4.7   writing and must include:  
  4.8      (1) a definite expiration date; 
  4.9      (2) a description of the real property involved; 
  4.10     (3) the list price and any terms required by the seller; 
  4.11     (4) the amount of any compensation or commission or the 
  4.12  basis for computing the commission; 
  4.13     (5) a clear statement explaining the events or conditions 
  4.14  that will entitle a broker to a commission; 
  4.15     (6) information regarding an override clause, if 
  4.16  applicable, including a statement to the effect that the 
  4.17  override clause will not be effective unless the licensee 
  4.18  supplies the seller with a protective list within 72 hours after 
  4.19  the expiration of the listing agreement; 
  4.20     (7) the following notice in not less than ten point 
  4.21  boldface type immediately preceding any provision of the listing 
  4.22  agreement relating to compensation of the licensee:  
  4.23     "NOTICE:  THE COMMISSION RATE COMPENSATION FOR THE SALE, 
  4.24  LEASE, RENTAL, OR MANAGEMENT OF REAL PROPERTY SHALL BE 
  4.25  DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS THE BROKER'S 
  4.26  CLIENT."; 
  4.27     (8) for residential property listings, the following "dual 
  4.28  agency" disclosure statement: 
  4.29     If a buyer represented by broker wishes to buy your 
  4.30  property, a dual agency will be created.  This means that broker 
  4.31  will represent both you and the buyer(s), and owe the same 
  4.32  duties to the buyer(s) that broker owes to you.  This conflict 
  4.33  of interest will prohibit broker from advocating exclusively on 
  4.34  your behalf.  Dual agency will limit the level of representation 
  4.35  broker can provide.  If a dual agency should arise, you will 
  4.36  need to agree that confidential information about price, terms, 
  5.1   and motivation will still be kept confidential unless you 
  5.2   instruct broker in writing to disclose specific information 
  5.3   about you.  All other information will be shared.  Broker cannot 
  5.4   act as a dual agent unless both you and the buyer(s) agree to 
  5.5   it.  By agreeing to a possible dual agency, you will be giving 
  5.6   up the right to exclusive representation in an in-house 
  5.7   transaction.  However, if you should decide not to agree to a 
  5.8   possible dual agency, and you want broker to represent you, you 
  5.9   may give up the opportunity to sell your property to buyers 
  5.10  represented by broker. 
  5.11                  Seller's Instructions to Broker 
  5.12     
  5.13     Having read and understood this information about dual 
  5.14  agency, seller(s) now instructs broker as follows: 
  5.15  .......     Seller(s) will agree to a dual agency 
  5.16              representation and will consider offers made 
  5.17              by buyers represented by broker. 
  5.18     
  5.19  .......     Seller will not agree to a dual agency
  5.20              representation and will not consider offers
  5.21              made by buyers represented by broker. 
  5.22     
  5.23     
  5.24  .........................      ......................... 
  5.25  Seller                         Broker 
  5.26     
  5.27     
  5.28  .........................      By:  .................... 
  5.29  Seller                              Salesperson 
  5.30     
  5.31  Date:  ..................; 
  5.32     (9) a notice requiring the seller to indicate in writing 
  5.33  whether it is acceptable to the seller to have the licensee 
  5.34  arrange for closing services or whether the seller wishes to 
  5.35  arrange for others to conduct the closing.  The notice must also 
  5.36  include the disclosure of any controlled business arrangement, 
  6.1   as the term is defined in United States Code, title 12, section 
  6.2   2602, between the licensee and the real estate closing agent 
  6.3   through which the licensee proposes to arrange closing services; 
  6.4   and 
  6.5      (10) for residential listings, a notice stating that after 
  6.6   the expiration of the listing agreement, the seller will not be 
  6.7   obligated to pay the licensee a fee or commission if the seller 
  6.8   has executed another valid listing agreement pursuant to which 
  6.9   the seller is obligated to pay a fee or commission to another 
  6.10  licensee for the sale, lease, or exchange of the real property 
  6.11  in question.  This notice may be used in the listing agreement 
  6.12  for any other type of real estate.  
  6.13     Sec. 8.  Minnesota Statutes 2000, section 82.196, 
  6.14  subdivision 2, is amended to read: 
  6.15     Subd. 2.  [CONTENTS.] All buyer's broker agreements must be 
  6.16  in writing and must include:  
  6.17     (1) a definite expiration date; 
  6.18     (2) the amount of any compensation or commission, or the 
  6.19  basis for computing the commission; 
  6.20     (3) a clear statement explaining the services to be 
  6.21  provided to the buyer by the broker, and the events or 
  6.22  conditions that will entitle a broker to a commission or other 
  6.23  compensation; 
  6.24     (4) a provision for cancellation of the agreement by either 
  6.25  party upon terms agreed upon by the parties; a clear statement 
  6.26  explaining if the agreement may be canceled and the terms under 
  6.27  which the agreement may be canceled; 
  6.28     (5) information regarding an override clause, if 
  6.29  applicable, including a statement to the effect that the 
  6.30  override clause will not be effective unless the licensee 
  6.31  supplies the buyer with a protective list within 72 hours after 
  6.32  the expiration of the buyer's broker agreement; 
  6.33     (6) the following notice in not less than ten point bold 
  6.34  face type immediately preceding any provision of the buyer's 
  6.35  broker agreement relating to compensation of the licensee: 
  6.36     "NOTICE:  THE COMMISSION RATE COMPENSATION FOR THE 
  7.1   PURCHASE, LEASE, RENTAL, OR MANAGEMENT OF REAL PROPERTY IS 
  7.2   NEGOTIABLE AND SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL 
  7.3   BROKER AND ITS THE BROKER'S CLIENT."; 
  7.4      (7) the following "dual agency" disclosure statement: 
  7.5      If you choose to purchase a property listed by broker, a 
  7.6   dual agency will be created.  This means that broker will 
  7.7   represent both you and the seller(s), and owe the same duties to 
  7.8   the seller(s) that broker owes to you.  This conflict of 
  7.9   interest will prohibit broker from advocating exclusively on 
  7.10  your behalf.  Dual agency will limit the level of representation 
  7.11  broker can provide.  If a dual agency should arise, you will 
  7.12  need to agree that confidential information about price, terms, 
  7.13  and motivation will still be kept confidential unless you 
  7.14  instruct broker in writing to disclose specific information 
  7.15  about you.  All other information will be shared.  Broker cannot 
  7.16  act as a dual agent unless both you and the seller(s) agree to 
  7.17  it.  By agreeing to a possible dual agency, you will be giving 
  7.18  up the right to exclusive representation in an in-house 
  7.19  transaction.  However, if you should decide not to agree to a 
  7.20  possible dual agency, and you want broker to represent you, you 
  7.21  may give up the opportunity to purchase the properties listed by 
  7.22  broker. 
  7.23                   Buyer's Instructions to Broker 
  7.24     
  7.25  .......      Buyer(s) will agree to a dual agency representation 
  7.26               and will consider properties listed by broker.
  7.27     
  7.28  .......      Buyer will not agree to a dual agency 
  7.29               representation and will not consider 
  7.30               properties listed by broker. 
  7.31     
  7.32     
  7.33  .........................      ......................... 
  7.34  Buyer                          Broker 
  7.35     
  7.36  .........................      By:  .................... 
  8.1   Buyer                               Salesperson 
  8.2      
  8.3   Date:  ...................; and 
  8.4      (8) for buyer's broker agreements which involve residential 
  8.5   real property, a notice stating that after the expiration of the 
  8.6   buyer's broker agreement, the buyer will not be obligated to pay 
  8.7   the licensee a fee or commission if the buyer has executed 
  8.8   another valid buyer's broker agreement pursuant to which the 
  8.9   buyer is obligated to pay a fee or commission to another 
  8.10  licensee for the purchase, lease, or exchange of real property. 
  8.11     Sec. 9.  Minnesota Statutes 2000, section 82.197, 
  8.12  subdivision 1, is amended to read: 
  8.13     Subdivision 1.  [AGENCY DISCLOSURE.] A real estate broker 
  8.14  or salesperson shall provide to a consumer in the sale and 
  8.15  purchase of a residential real property transaction at the first 
  8.16  substantive contact with the consumer an agency disclosure form 
  8.17  in substantially the form set forth in subdivision 4.  The 
  8.18  agency disclosure form shall be intended to provide a 
  8.19  description of available options for agency and nonagency 
  8.20  relationships, and a description of the role of a licensee under 
  8.21  each option.  The agency disclosure form shall provide a 
  8.22  signature line for acknowledgment of receipt by the consumer. 
  8.23     Sec. 10.  Minnesota Statutes 2000, section 82.197, 
  8.24  subdivision 4, is amended to read: 
  8.25     Subd. 4.  [AGENCY DISCLOSURE FORM.] The agency disclosure 
  8.26  form shall be in substantially the form set forth below: 
  8.27        <b> AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS</b>
  8.28  <b>Minnesota law requires</b> that early in any relationship, real 
  8.29  estate brokers or salespersons discuss with consumers what type 
  8.30  of agency representation or relationship they desire.(1)  The 
  8.31  available options are listed below.  This is <b>not</b> a contract.  
  8.32  <b>This is an agency disclosure form only.  If you desire</b> 
  8.33  <b>representation, you must enter into a written contract according</b> 
  8.34  <b>to state law</b> (a listing contract or a buyer representation 
  8.35  contract).  Until such time as you choose to enter into a 
  9.1   written contract for representation or assistance, you will be 
  9.2   treated as a customer of the broker or salesperson and not 
  9.3   represented by the brokerage and will not receive any 
  9.4   representation from the broker or salesperson.  The broker or 
  9.5   salesperson would then will be acting as a Seller's broker 
  9.6   Facilitator (see paragraph I V below), or as a nonagent (see 
  9.7   paragraph IV below) unless the broker or salesperson is 
  9.8   representing another party as described below. 
  9.9      ACKNOWLEDGMENT:  I/We acknowledge that I/We have been 
  9.10  presented with the below-described options.  I/We understand 
  9.11  that until I/We have signed a representation contract, I/We are 
  9.12  not represented by the broker/salesperson and information given 
  9.13  to the broker/salesperson may be disclosed.  I/We understand 
  9.14  that written consent is required for a dual agency 
  9.15  relationship.  THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR 
  9.16  REPRESENTATION. 
  9.17  ...............     .......... 
  9.18  Signature           Date
  9.19  ...............     .......... 
  9.20  Signature           Date
  9.21  I.
  9.22     <b>Seller's Broker:</b>  A broker who lists a property, or a 
  9.23     salesperson who is licensed to the listing broker, 
  9.24     represents the Seller and acts on behalf of the Seller.  A 
  9.25     broker or salesperson working with a Buyer may also act as 
  9.26     a subagent of the Seller, in which case the Buyer is the 
  9.27     broker's customer and is not represented by that broker.  A 
  9.28     Seller's broker owes to the Seller the fiduciary duties 
  9.29     described below.(2)  The broker must also disclose to the 
  9.30     Buyer any material facts as defined in Minnesota Statutes, 
  9.31     section 82.197, subdivision 6, of which the broker is aware 
  9.32     that could adversely and significantly affect the Buyer's 
  9.33     use or enjoyment of the property.  If a broker or 
  9.34     salesperson who is working with a Buyer as a customer and 
  9.35     is representing the Seller and to whom any information is 
  9.36     disclosed, he or she must act in the Seller's interests 
 10.1      best interest and must tell the Seller the any information 
 10.2      disclosed to him or her, except confidential information 
 10.3      acquired in a facilitator relationship (see paragraph V 
 10.4      below).  In that case, the Buyer will not be represented 
 10.5      and will not receive advice and counsel from the broker or 
 10.6      salesperson. 
 10.7   II. 
 10.8      <b>Subagent:</b>  A broker or salesperson who is working with a 
 10.9      Buyer but represents the Seller.  In this case, the Buyer 
 10.10     is the broker's customer and is not represented by that 
 10.11     broker.  If a broker or salesperson working with a Buyer as 
 10.12     a customer is representing the Seller, he or she must act 
 10.13     in the Seller's best interest and must tell the Seller any 
 10.14     information that is disclosed to him or her.  In that case, 
 10.15     the Buyer will not be represented and will not receive 
 10.16     advice and counsel from the broker or salesperson. 
 10.17  III.
 10.18     <b>Buyer's Broker:</b>  A Buyer may enter into an agreement for 
 10.19     the broker or salesperson to represent and act on behalf of 
 10.20     the Buyer.  The broker may represent the Buyer only, and 
 10.21     not the Seller, even if the broker he or she is being paid 
 10.22     in whole or in part by the Seller.  A Buyer's broker owes 
 10.23     to the Buyer the fiduciary duties described below.(2)  The 
 10.24     broker must disclose to the Buyer any material facts as 
 10.25     defined in Minnesota Statutes, section 82.197, subdivision 
 10.26     6, of which the broker is aware that could adversely and 
 10.27     significantly affect the Buyer's use or enjoyment of the 
 10.28     property.  If a broker or salesperson working with a Seller 
 10.29     as a customer is representing the Buyer, he or she must act 
 10.30     in the Buyer's best interest and must tell the Buyer any 
 10.31     information disclosed to him or her, except confidential 
 10.32     information acquired in a facilitator relationship (see 
 10.33     paragraph V below).  In that case, the Seller will not be 
 10.34     represented and will not receive advice and counsel from 
 10.35     the broker or salesperson. 
 10.36  III. IV.
 11.1      <b>Dual Agency-Broker Representing both Seller and Buyer:</b>  
 11.2      Dual agency occurs when one broker or salesperson 
 11.3      represents both parties to a transaction, or when two 
 11.4      salespersons licensed to the same broker each represent a 
 11.5      party to the transaction.  Dual agency requires the 
 11.6      informed consent of all parties, and means that the broker 
 11.7      and salesperson owe the same duties to the Seller and the 
 11.8      Buyer.  This role limits the level of representation the 
 11.9      broker and salespersons can provide, and prohibits them 
 11.10     from acting exclusively for either party.  In a dual 
 11.11     agency, confidential information about price, terms, and 
 11.12     motivation for pursuing a transaction will be kept 
 11.13     confidential unless one party instructs the broker or 
 11.14     salesperson in writing to disclose specific information 
 11.15     about the party writing him or her.  Other information will 
 11.16     be shared.  Dual agents may not advocate for one party to 
 11.17     the detriment of the other.(3) 
 11.18     Within the limitations described above, dual agents owe to 
 11.19     both Seller and Buyer the fiduciary duties described 
 11.20     below.(2)  Dual agents must disclose to Buyers any material 
 11.21     facts as defined in Minnesota Statutes, section 82.197, 
 11.22     subdivision 6, of which the broker is aware that could 
 11.23     adversely and significantly affect the Buyer's use or 
 11.24     enjoyment of the property. 
 11.25  IV. V.
 11.26     <b>Nonagent Facilitator:</b>  A broker or salesperson may perform 
 11.27     who performs services for either party as a nonagent, if 
 11.28     that party signs a nonagency services agreement a Buyer, a 
 11.29     Seller, or both but does not represent either in a 
 11.30     fiduciary capacity as a Buyer's Broker, Seller's Broker, or 
 11.31     Dual Agent.  As a nonagent the broker or salesperson 
 11.32     facilitates the transaction, but does not act on behalf of 
 11.33     either party.  <b>THE NONAGENT FACILITATOR BROKER OR</b> 
 11.34     <b>SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY</b> 
 11.35     <b>DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE</b> 
 11.36     <b>DUTIES ARE INCLUDED IN THE WRITTEN NONAGENCY FACILITATOR</b> 
 12.1      <b>SERVICES AGREEMENT.</b>  The nonagent facilitator broker or 
 12.2      salesperson owes only the duty of confidentiality to the 
 12.3      party but owes no other duty to the party except those 
 12.4      duties required by law or contained in the a written 
 12.5      nonagency facilitator services agreement, if any.  In the 
 12.6      event a facilitator broker or salesperson, working with a 
 12.7      Buyer, shows a property listed by the facilitator broker or 
 12.8      salesperson, then the facilitator broker or salesperson 
 12.9      must act as a Seller's Broker (see paragraph I above).  In 
 12.10     the event a facilitator broker or salesperson, working with 
 12.11     a Seller, accepts a showing of the property by a Buyer 
 12.12     being represented by the facilitator broker or salesperson, 
 12.13     then the facilitator broker or salesperson must act as a 
 12.14     Buyer's Broker (see paragraph III above). 
 12.15  <b>ACKNOWLEDGMENT:  I/We acknowledge that I/We have been presented</b> 
 12.16  <b>with the above-described options.  I/We understand that Buyers</b> 
 12.17  <b>who have not signed a Buyer representation contract or nonagency</b> 
 12.18  <b>services agreement are not represented by the broker/salesperson</b> 
 12.19  <b>and information given to the broker/salesperson will be</b> 
 12.20  <b>disclosed to the Seller.  I/We understand that written consent</b> 
 12.21  <b>is required for a dual agency relationship.  This is a</b> 
 12.22  <b>disclosure only, NOT a contract for representation.</b> 
 12.23  <b>.........................</b>       <b>........................</b> 
 12.24    <b>Seller</b>            <b>Date</b>         <b>Buyer</b>              <b>Date</b>
 12.26  <b>......................... </b>      <b>........................</b> 
 12.27    <b>Seller</b>            <b>Date</b>         <b>Buyer</b>              <b>Date</b> 
 12.31  **************************************************************** 
 12.32     (1) This disclosure is required by law in any transaction 
 12.33  involving property occupied or intended to be occupied by one to 
 12.34  four families as their residence. 
 12.35     (2) The fiduciary duties mentioned above are listed below 
 12.36  and have the following meanings: 
 13.1      Loyalty-broker/salesperson will act only in client(s)' best 
 13.2   interest. 
 13.3      Obedience-broker/salesperson will carry out all client(s)' 
 13.4   lawful instructions. 
 13.5      Disclosure-broker/salesperson will disclose to client(s) 
 13.6   all material facts of which broker/salesperson has knowledge 
 13.7   which might reasonably affect the client's rights and interests. 
 13.8      Confidentiality-broker/salesperson will keep client(s)' 
 13.9   confidences unless required by law to disclose specific 
 13.10  information (such as disclosure of material facts to Buyers). 
 13.11     Reasonable Care-broker/salesperson will use reasonable care 
 13.12  in performing duties as an agent. 
 13.13     Accounting-broker/salesperson will account to client(s) for 
 13.14  all client(s)' money and property received as agent. 
 13.15     (3) If Seller(s) decides not to agree to a dual agency 
 13.16  relationship, Seller(s) may give up the opportunity to sell the 
 13.17  property to Buyers represented by the broker/salesperson.  If 
 13.18  Buyer(s) decides not to agree to a dual agency relationship, 
 13.19  Buyer(s) may give up the opportunity to purchase properties 
 13.20  listed by the broker. 
 13.21     Sec. 11.  Minnesota Statutes 2000, section 82.197, is 
 13.22  amended by adding a subdivision to read: 
 13.23     Subd. 6.  [MATERIAL FACTS.] (a) Licensees shall disclose to 
 13.24  any prospective purchaser all material facts of which the 
 13.25  licensees are aware, which could adversely and significantly 
 13.26  affect an ordinary purchaser's use or enjoyment of the property, 
 13.27  or any intended use of the property of which the licensees are 
 13.28  aware. 
 13.29     (b) It is not a material fact relating to real property 
 13.30  offered for sale and no regulatory action shall be brought 
 13.31  against a licensee for failure to disclose in any real estate 
 13.32  transaction the fact or suspicion that the property: 
 13.33     (1) is or was occupied by an owner or occupant who is or 
 13.34  was suspected to be infected with human immunodeficiency virus 
 13.35  or diagnosed with acquired immunodeficiency syndrome; or 
 13.36     (2) was the site of an accidental death, natural death, or 
 14.1   perceived paranormal activity.  
 14.2      (c) A licensee or employee of the licensee has no duty to 
 14.3   disclose information regarding an offender who is required to 
 14.4   register under section 243.166, or about whom notification is 
 14.5   made under that section, if the broker or salesperson, in a 
 14.6   timely manner, provides a written notice that information about 
 14.7   the predatory offender registry and persons registered with the 
 14.8   registry may be obtained by contacting local law enforcement 
 14.9   where the property is located or the department of corrections. 
 14.10     (d) A licensee is not required to disclose, except as 
 14.11  otherwise provided in paragraph (e), information relating to the 
 14.12  physical condition of the property or any other information 
 14.13  relating to the real estate transaction, if a written report 
 14.14  that discloses the information has been prepared by a qualified 
 14.15  third party and provided to the person.  For the purposes of 
 14.16  this paragraph, "qualified third party" means a federal, state, 
 14.17  or local governmental agency, or any person whom the broker, 
 14.18  salesperson, or a party to the real estate transaction 
 14.19  reasonably believes has the expertise necessary to meet the 
 14.20  industry standards of practice for the type of inspection or 
 14.21  investigation that has been conducted by the third party in 
 14.22  order to prepare the written report and who is acceptable to the 
 14.23  person to whom the disclosure is being made. 
 14.24     (e) A licensee shall disclose to the parties to a real 
 14.25  estate transaction any facts known by the broker or salesperson 
 14.26  that contradict any information included in a written report, if 
 14.27  a copy of the report is provided to the licensee, described in 
 14.28  paragraph (d). 
 14.29     Sec. 12.  Minnesota Statutes 2000, section 82.22, 
 14.30  subdivision 13, is amended to read: 
 14.31     Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
 14.32  renewal date, all real estate salespersons and all real estate 
 14.33  brokers shall be required to successfully complete 30 hours of 
 14.34  real estate continuing education, either as a student or a 
 14.35  lecturer, in courses of study approved by the commissioner, 
 14.36  during each 24-month license period.  At least 15 of the 30 
 15.1   credit hours must be completed during the first 12 months of the 
 15.2   24-month licensing period.  Salespersons and brokers whose 
 15.3   initial license period extends more than 12 months are required 
 15.4   to complete 15 hours of real estate continuing education during 
 15.5   the initial license period.  Those licensees who will receive a 
 15.6   12-month license on July 1, 1995, because of the staggered 
 15.7   implementation schedule must complete 15 hours of real estate 
 15.8   continuing education as a requirement for renewal on July 1, 
 15.9   1996.  Licensees may not claim credit for continuing education 
 15.10  not actually completed as of the date their report of continuing 
 15.11  education compliance is filed. 
 15.12     (b) The commissioner shall adopt rules defining the 
 15.13  standards for course and instructor approval, and may adopt 
 15.14  rules for the proper administration of this subdivision.  The 
 15.15  commissioner may not approve a course which can be completed by 
 15.16  the student at home or outside the classroom without the 
 15.17  supervision of an instructor approved by the department of 
 15.18  commerce.  The commissioner has discretion to establish a pilot 
 15.19  program to explore delivery of except accredited courses using 
 15.20  new delivery technology, including interactive technology, and 
 15.21  the Internet.  This pilot program expires on August 1, 
 15.22  2001.  Courses in motivation, salesmanship, psychology, or time 
 15.23  management shall not be approved by the commissioner for 
 15.24  continuing education credit. 
 15.25     (c) Any program approved by Minnesota continuing legal 
 15.26  education shall be approved by the commissioner of commerce for 
 15.27  continuing education for real estate brokers and salespeople if 
 15.28  the program or any part thereof relates to real estate.  
 15.29     (d) As part of the continuing education requirements of 
 15.30  this section, the commissioner shall require that all real 
 15.31  estate brokers and salespersons receive: 
 15.32     (1) at least two hours one hour of training during each 
 15.33  license period in courses in laws or regulations on agency 
 15.34  representation and disclosure; and 
 15.35     (2) at least two hours one hour of training during each 
 15.36  license period in courses in state and federal fair housing 
 16.1   laws, regulations, and rules, or other antidiscrimination laws. 
 16.2      Clause Clauses (1) does and (2) do not apply to real estate 
 16.3   salespersons and real estate brokers engaged solely in the 
 16.4   commercial real estate business who file with the commissioner a 
 16.5   verification of this status along with the continuing education 
 16.6   report required under paragraph (a). 
 16.7      (e) The commissioner is authorized to establish a procedure 
 16.8   for renewal of course accreditation. 
 16.9      (f) Approved courses may be sponsored or offered by a 
 16.10  broker of a real estate company and may be held on the premises 
 16.11  of a company licensed under this chapter.  All course offerings 
 16.12  must be open to any interested individuals.  Access may be 
 16.13  restricted by the sponsor based on class size only.  Courses 
 16.14  must not be approved if attendance is restricted to any 
 16.15  particular group of people.  A broker must comply with all 
 16.16  continuing education rules prescribed by the commissioner. 
 16.17     (g) No more than one-half of the credit hours per licensing 
 16.18  period, including continuing education required under 
 16.19  subdivision 6, may be credited to a person for attending any 
 16.20  combination of courses either:  
 16.21     (1) sponsored by, offered by, or affiliated with a real 
 16.22  estate company or its agents; or 
 16.23     (2) offered using new delivery technology, including 
 16.24  interactive technology, and the Internet. 
 16.25     Sec. 13.  Minnesota Statutes 2000, section 82.24, 
 16.26  subdivision 8, is amended to read: 
 16.27     Subd. 8.  [ACCRUED INTEREST.] (a) Each broker shall 
 16.28  maintain a pooled interest-bearing trust account for deposit of 
 16.29  client funds.  The interest accruing on the trust account, less 
 16.30  reasonable transaction costs, must be paid to the state 
 16.31  treasurer for deposit in the housing trust fund account created 
 16.32  under section 462A.201 unless otherwise specified pursuant to an 
 16.33  expressed written agreement between the parties to a transaction.
 16.34     (b) For an account created under paragraph (a), each broker 
 16.35  shall direct the financial institution to:  
 16.36     (1) pay the interest, less reasonable transaction costs, 
 17.1   computed in accordance with the financial institution's standard 
 17.2   accounting practice, at least quarterly, to the state treasurer; 
 17.3   and 
 17.4      (2) send a statement to the state treasurer showing the 
 17.5   name of the broker for whom the payment is made, the rate of 
 17.6   interest applied, the amount of service charges deducted, and 
 17.7   the account balance for the period in which the report is made. 
 17.8      The state treasurer shall credit the amount collected under 
 17.9   this subdivision to the housing trust fund account established 
 17.10  in section 462A.201. 
 17.11     (c) The financial institution must promptly notify the 
 17.12  commissioner if a draft drawn on the account is dishonored.  A 
 17.13  draft is not dishonored if a stop payment order is requested by 
 17.14  an issuer who has a good faith defense to payment on the draft. 
 17.15     Sec. 14.  Minnesota Statutes 2000, section 82.27, 
 17.16  subdivision 3, is amended to read: 
 17.17     Subd. 3.  [ORDER TO SHOW CAUSE.] The commissioner shall 
 17.18  issue an order requiring a licensee or applicant for a license 
 17.19  to show cause why the license should not be revoked or 
 17.20  suspended, or the licensee censured, or the application denied.  
 17.21  The order shall be calculated to give reasonable notice of the 
 17.22  time and place for hearing thereon, and shall state the reasons 
 17.23  specific statute or rule that has been violated for the entry of 
 17.24  the order.  The commissioner may by order summarily suspend a 
 17.25  license pending final determination of any order to show cause.  
 17.26  If a license is suspended pending final determination of an 
 17.27  order to show cause, a hearing on the merits shall be held 
 17.28  within 30 days of the issuance of the order of suspension.  All 
 17.29  hearings shall be conducted in accordance with the provisions of 
 17.30  chapter 14.  After the hearing, the commissioner shall enter an 
 17.31  order making such disposition of the matter as the facts 
 17.32  require.  If the licensee or applicant fails to appear at a 
 17.33  hearing after having been duly notified of it, such person shall 
 17.34  be deemed in default, and the proceeding may be determined 
 17.35  against the licensee or applicant upon consideration of the 
 17.36  order to show cause, the allegations of which may be deemed to 
 18.1   be true. 
 18.2      Sec. 15.  Minnesota Statutes 2000, section 82.34, 
 18.3   subdivision 15, is amended to read: 
 18.4      Subd. 15.  Any sums received by the commissioner pursuant 
 18.5   to any provisions of this section shall be deposited in the 
 18.6   state treasury, and credited to the real estate education, 
 18.7   research and recovery fund, and said sums shall be allocated 
 18.8   exclusively for the purposes provided in this section.  All 
 18.9   moneys in the fund are appropriated annually to the commissioner 
 18.10  for the purposes of this section. 
 18.11     All money credited to the fund under section 462A.201 may 
 18.12  only be used for purposes under subdivision 6, clause (g).  
 18.13  Beginning in 1990, the commissioner must, on February 1 of each 
 18.14  year, review the amount of money spent or allocated for uses 
 18.15  under subdivision 6, clause (g), for the previous calendar 
 18.16  year.  If the amount spent or allocated is less than the amount 
 18.17  credited to the fund under section 462A.201 during the same 
 18.18  calendar year, the difference must be transferred from the fund 
 18.19  to the housing trust fund account established in section 
 18.20  462A.201.  If the fund balance exceeds $6,000,000, the 
 18.21  commissioner may suspend the fee imposed under subdivision 3. 
 18.22     Sec. 16.  Minnesota Statutes 2000, section 82B.14, is 
 18.23  amended to read: 
 18.24     82B.14 [EXPERIENCE REQUIREMENT.] 
 18.25     (a) As a prerequisite for licensing as a registered real 
 18.26  property appraiser or licensed real property appraiser, an 
 18.27  applicant must present evidence satisfactory to the commissioner 
 18.28  that the person has obtained 2,000 hours of experience in real 
 18.29  property appraisal. 
 18.30     As a prerequisite for licensing as a certified residential 
 18.31  real property appraiser, an applicant must present evidence 
 18.32  satisfactory to the commissioner that the person has obtained 
 18.33  2,500 hours of experience in real property appraisal. 
 18.34     As a prerequisite for licensing as a certified general real 
 18.35  property appraiser, an applicant must present evidence 
 18.36  satisfactory to the commissioner that the person has obtained 
 19.1   3,000 hours of experience in real property appraisal.  At least 
 19.2   50 percent, or 1,500 hours, must be in nonresidential appraisal 
 19.3   work. 
 19.4      (b) Each applicant for license under section 82B.11, 
 19.5   subdivision 3, 4, or 5, shall give under oath a detailed listing 
 19.6   of the real estate appraisal reports or file memoranda for which 
 19.7   experience is claimed by the applicant.  Upon request, the 
 19.8   applicant shall make available to the commissioner for 
 19.9   examination, a sample of appraisal reports that the applicant 
 19.10  has prepared in the course of appraisal practice. 
 19.11     (c) Applicants may not receive credit for experience 
 19.12  accumulated while unlicensed, if the experience is based on 
 19.13  activities which required a license under this section. 
 19.14     Sec. 17.  Minnesota Statutes 2000, section 83.25, 
 19.15  subdivision 1, is amended to read: 
 19.16     Subdivision 1.  No person shall offer or sell in this state 
 19.17  any interest in subdivided lands without having obtained: 
 19.18     (1) a license under chapter 82; and 
 19.19     (2) an additional license to offer or dispose of subdivided 
 19.20  lands.  This license may be obtained by submitting an 
 19.21  application in writing to the commissioner upon forms prepared 
 19.22  and furnished by the commissioner.  Each application shall be 
 19.23  signed and sworn to by the applicant and accompanied by a 
 19.24  license fee of $10 per year.  The commissioner may also require 
 19.25  an additional examination for this license. 
 19.26     Sec. 18.  Minnesota Statutes 2000, section 317A.203, is 
 19.27  amended to read: 
 19.28     317A.203 [NUMBER.] 
 19.29     A board of directors must consist of three or more 
 19.30  individuals, with the number specified in or fixed in accordance 
 19.31  with the articles or bylaws, except that if the corporation has 
 19.32  either one or two members with voting rights, the number of 
 19.33  directors may be less than three but not less than the number of 
 19.34  members with voting rights. 
 19.35     Sec. 19.  Minnesota Statutes 2000, section 326.91, 
 19.36  subdivision 1, is amended to read: 
 20.1      Subdivision 1.  [CAUSE.] The commissioner may by order 
 20.2   deny, suspend, or revoke any license or may censure a licensee, 
 20.3   and may impose a civil penalty as provided for in section 
 20.4   45.027, subdivision 6, if the commissioner finds that the order 
 20.5   is in the public interest, and that the applicant, licensee, or 
 20.6   affiliate of an applicant or licensee, or other agent, owner, 
 20.7   partner, director, governor, shareholder, member, officer, 
 20.8   qualifying person, or managing employee of the applicant or 
 20.9   licensee or any person occupying a similar status or performing 
 20.10  similar functions:  
 20.11     (1) has filed an application for a license which is 
 20.12  incomplete in any material respect or contains any statement 
 20.13  which, in light of the circumstances under which it is made, is 
 20.14  false or misleading with respect to any material fact; 
 20.15     (2) has engaged in a fraudulent, deceptive, or dishonest 
 20.16  practice; 
 20.17     (3) is permanently or temporarily enjoined by any court of 
 20.18  competent jurisdiction from engaging in or continuing any 
 20.19  conduct or practice involving any aspect of the business; 
 20.20     (4) has failed to reasonably supervise employees, agents, 
 20.21  subcontractors, or salespersons, or has performed negligently or 
 20.22  in breach of contract, so as to cause injury or harm to the 
 20.23  public; 
 20.24     (5) has violated or failed to comply with any provision of 
 20.25  sections 326.83 to 326.98 or any rule or order under sections 
 20.26  326.83 to 326.98; 
 20.27     (6) has been shown to be incompetent, untrustworthy, or 
 20.28  financially irresponsible; 
 20.29     (7) has been convicted of a violation of the State Building 
 20.30  Code or, in jurisdictions that do not enforce the State Building 
 20.31  Code, has refused to correct a violation of the State Building 
 20.32  Code when the violation has been certified by a Minnesota 
 20.33  licensed structural engineer; 
 20.34     (8) has failed to use the proceeds of any payment made to 
 20.35  the licensee for the construction of, or any improvement to, 
 20.36  residential real estate, as defined in section 326.83, 
 21.1   subdivision 17, for the payment of labor, skill, material, and 
 21.2   machinery contributed to the construction or improvement, 
 21.3   knowing that the cost of any labor performed, or skill, 
 21.4   material, or machinery furnished for the improvement remains 
 21.5   unpaid; 
 21.6      (9) has not furnished to the person making payment either a 
 21.7   valid lien waiver as to any unpaid labor performed, or skill, 
 21.8   material, or machinery furnished for an improvement, or a 
 21.9   payment bond in the basic amount of the contract price for the 
 21.10  improvement conditioned for the prompt payment to any person or 
 21.11  persons entitled to payment; 
 21.12     (10) has engaged in conduct which was the basis for a 
 21.13  contractor's recovery fund payment pursuant to section 326.975, 
 21.14  which payment has not been reimbursed; 
 21.15     (11) has engaged in bad faith, unreasonable delays, or 
 21.16  frivolous claims in defense of a civil lawsuit arising out of 
 21.17  their activities as a licensee under this chapter; 
 21.18     (12) has had a judgment entered against them for failure to 
 21.19  make payments to employees or subcontractors, and all appeals of 
 21.20  the judgment have been exhausted or the period for appeal has 
 21.21  expired; 
 21.22     (13) if unlicensed, has obtained a building permit by the 
 21.23  fraudulent use of a fictitious license number or the license 
 21.24  number of another, or, if licensed, has knowingly allowed an 
 21.25  unlicensed person to use the licensee's license number for the 
 21.26  purpose of fraudulently obtaining a building permit; or 
 21.27     (14) has made use of forged mechanics' lien waivers under 
 21.28  chapter 514. 
 21.29     Sec. 20.  Minnesota Statutes 2000, section 326.975, 
 21.30  subdivision 1, is amended to read: 
 21.31     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 21.32  fees, each applicant for a license under sections 326.83 to 
 21.33  326.98 shall pay a fee to the contractor's recovery fund.  The 
 21.34  contractor's recovery fund is created in the state treasury and 
 21.35  must be administered by the commissioner in the manner and 
 21.36  subject to all the requirements and limitations provided by 
 22.1   section 82.34 with the following exceptions: 
 22.2      (1) each licensee who renews a license shall pay in 
 22.3   addition to the appropriate renewal fee an additional fee which 
 22.4   shall be credited to the contractor's recovery fund.  The amount 
 22.5   of the fee shall be based on the licensee's gross annual 
 22.6   receipts for the licensee's most recent fiscal year preceding 
 22.7   the renewal, on the following scale: 
 22.8             Fee           Gross Receipts
 22.9             $100          under $1,000,000
 22.10            $150          $1,000,000 to $5,000,000
 22.11            $200          over $5,000,000
 22.12  Any person who receives a new license shall pay a fee based on 
 22.13  the same scale; 
 22.14     (2) the sole purpose of this fund is to compensate any 
 22.15  aggrieved owner or lessee of residential property located within 
 22.16  this state who obtains a final judgment in any court of 
 22.17  competent jurisdiction against a licensee licensed under section 
 22.18  326.84, on grounds of fraudulent, deceptive, or dishonest 
 22.19  practices, conversion of funds, or failure of performance 
 22.20  arising directly out of any transaction when the judgment debtor 
 22.21  was licensed and performed any of the activities enumerated 
 22.22  under section 326.83, subdivision 19, on the owner's residential 
 22.23  property or on residential property rented by the lessee, or on 
 22.24  new residential construction which was never occupied prior to 
 22.25  purchase by the owner, or which was occupied by the licensee for 
 22.26  less than one year prior to purchase by the owner, and which 
 22.27  cause of action arose on or after April 1, 1994; 
 22.28     (3) nothing may obligate the fund for more than $50,000 per 
 22.29  claimant, nor more than $50,000 $75,000 per licensee; and 
 22.30     (4) nothing may obligate the fund for claims based on a 
 22.31  cause of action that arose before the licensee paid the recovery 
 22.32  fund fee set in clause (1), or as provided in section 326.945, 
 22.33  subdivision 3.  
 22.34     (b) Should the commissioner pay from the contractor's 
 22.35  recovery fund any amount in settlement of a claim or toward 
 22.36  satisfaction of a judgment against a licensee, the license shall 
 23.1   be automatically suspended upon the effective date of an order 
 23.2   by the court authorizing payment from the fund.  No licensee 
 23.3   shall be granted reinstatement until the licensee has repaid in 
 23.4   full, plus interest at the rate of 12 percent a year, twice the 
 23.5   amount paid from the fund on the licensee's account, and has 
 23.6   obtained a surety bond issued by an insurer authorized to 
 23.7   transact business in this state in the amount of at least 
 23.8   $40,000.  
 23.9      Sec. 21.  Minnesota Statutes 2000, section 332.41, is 
 23.10  amended to read: 
 23.11     332.41 [APPEALS.] 
 23.12     Subdivision 1.  [FILING OF APPEAL.] In the rejection of an 
 23.13  application for a license or the renewal thereof filed under 
 23.14  sections 332.31 to 332.45 or of the suspension or revocation of 
 23.15  a license granted under sections 332.31 to 332.45 the applicant 
 23.16  or licensee may within 90 days after receipt of notice of such 
 23.17  rejection, suspension, or revocation, file an appeal and 
 23.18  thereafter prosecute the appeal in accordance with the 
 23.19  provisions of the statutes governing appeal from, or review of, 
 23.20  decisions of administrative agencies in this state.  
 23.21     Subd. 2.  [SUPERSEDEAS.] The filing of an appeal from an 
 23.22  order of the commissioner of commerce rejecting an application 
 23.23  for a license by a collection agency engaged in business as of 
 23.24  July 1, 1969, or rejecting an application for the renewal of a 
 23.25  license, or suspending or revoking a license within 60 days 
 23.26  after the date of such order, shall operate as a supersedeas 
 23.27  which shall continue pending final determination of such appeal. 
 23.28     Appeal from a denial, suspension, revocation, or censure of 
 23.29  a license must be made according to chapter 14. 
 23.30     Sec. 22.  Minnesota Statutes 2000, section 359.02, is 
 23.31  amended to read: 
 23.32     359.02 [TERM.] 
 23.33     A notary commissioned under section 359.01 holds office for 
 23.34  five years, unless sooner removed by the governor or the 
 23.35  district court, or by action of the commissioner.  Within seven 
 23.36  months 60 days before the expiration of the commission a notary 
 24.1   may be reappointed apply for reappointment for a new term to 
 24.2   commence and to be designated in the new commission as beginning 
 24.3   upon the day immediately following the date of the 
 24.4   expiration.  A notary whose commission expires on January 1, 
 24.5   2005, may apply for reappointment six months before the 
 24.6   expiration date.  The reappointment takes effect and is valid 
 24.7   although the appointing governor may not be in the office of 
 24.8   governor on the effective day. 
 24.9      (a) All notary commissions issued before January 31, 1995, 
 24.10  will expire on January 31, 1995. 
 24.11     (b) All notary commissions issued after January 31, 1995, 
 24.12  will expire at the end of the licensing period, which will end 
 24.13  every fifth year following January 31, 1995. 
 24.14     (c) All notary commissions issued during a licensing period 
 24.15  expire at the end of that period as set forth in this 
 24.16  section expire on January 31 of the fifth year following the 
 24.17  year of issue. 
 24.18     Sec. 23.  Minnesota Statutes 2000, section 507.45, 
 24.19  subdivision 3, is amended to read: 
 24.20     Subd. 3.  [REQUIREMENTS FOR REAL ESTATE PERSONNEL.] If the 
 24.21  closing services are to be provided by a real estate broker, 
 24.22  real estate salesperson, or real estate closing agent, the 
 24.23  following regulations shall apply. 
 24.24     (a) The written contract for closing services shall state 
 24.25  in at least 10-point type that the real estate broker, real 
 24.26  estate salesperson, or real estate closing agent has not and, 
 24.27  under applicable state law, may not express opinions regarding 
 24.28  the legal effect of the closing documents or of the closing 
 24.29  itself. 
 24.30     (b) No closing fee may be charged in connection with the 
 24.31  transfer of the legal or equitable ownership of a property if a 
 24.32  closing is performed without either a mortgagee's or owner's 
 24.33  title insurance commitment or a legal opinion regarding the 
 24.34  status of title. 
 24.35     Sec. 24.  [EFFECTIVE DATE.] 
 24.36     Sections 1 to 6, 11, 16, and 23 are effective the day 
 25.1   following final enactment.  Sections 12 and 17 are effective 
 25.2   July 1, 2001.  Section 20 is effective January 1, 2001, and 
 25.3   applies to claims arising from incidents or conduct occurring on 
 25.4   or after that date.