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             residential contractors, notaries public, and 
  1.5             collection agencies; modifying certain continuing 
  1.6             education requirements; regulating certain fees, 
  1.7             costs, duties, rights, and penalties; regulating 
  1.8             nonprofit corporations; requiring a study; 
  1.9             appropriating money; amending Minnesota Statutes 2000, 
  1.10            sections 45.0295; 53A.081, subdivision 2; 58.10, 
  1.11            subdivision 1, by adding a subdivision; 60K.19, 
  1.12            subdivision 8; 72B.04, subdivisions 6, 7; 80B.03, 
  1.13            subdivision 4a; 82.195, subdivision 2; 82.196, 
  1.14            subdivision 2; 82.197, subdivisions 1, 4, by adding a 
  1.15            subdivision; 82.22, subdivision 13; 82.24, subdivision 
  1.16            8; 82.27, subdivision 3; 82.34, subdivision 15, by 
  1.17            adding a subdivision; 82B.14; 317A.203; 326.91, 
  1.18            subdivision 1; 326.975, subdivision 1; 332.41; 359.02; 
  1.19            507.45, subdivision 3. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 2000, section 45.0295, is 
  1.22  amended to read: 
  1.23     45.0295 [FEES.] 
  1.24     (a) The following fees shall be paid to the commissioner: 
  1.25     (1) for each hour or fraction of one hour of education 
  1.26  course approval ~~for continuing education~~ sought, $10; and 
  1.27     (2) for each ~~continuing education~~ course coordinator 
  1.28  approval, $100. 
  1.29     (b) All fees paid to the commissioner under this section 
  1.30  are nonrefundable, except that an overpayment of a fee shall be 
  1.31  returned upon proper application. 
  1.32     Sec. 2.  Minnesota Statutes 2000, section 53A.081, 
  2.1   subdivision 2, is amended to read: 
  2.2      Subd. 2.  [INVESTIGATION.] The commissioner may at any time 
  2.3   ~~and shall at least once in each year~~ investigate the currency 
  2.4   exchange business of any licensee and of every person, 
  2.5   partnership, association, and corporation engaged in the 
  2.6   business of operating a currency exchange in the manner provided 
  2.7   under section 45.027. 
  2.8      Sec. 3.  Minnesota Statutes 2000, section 58.10, 
  2.9   subdivision 1, is amended to read: 
  2.10     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
  2.11  to the commissioner: 
  2.12     (1) for an initial residential mortgage originator license, 
  2.13  ~~$800~~ $850, $50 of which is credited to the consumer education 
  2.14  account in the special revenue fund; 
  2.15     (2) for a renewal license, ~~$400~~ $450, $50 of which is 
  2.16  credited to the consumer education account in the special 
  2.17  revenue fund; 
  2.18     (3) for an initial residential mortgage servicer's license, 
  2.19  $1,000; 
  2.20     (4) for a renewal license, $500; and 
  2.21     (5) for a certificate of exemption, $100. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 58.10, is amended 
  2.23  by adding a subdivision to read: 
  2.24     Subd. 3.  [CONSUMER EDUCATION ACCOUNT; MONEY CREDITED AND 
  2.25  APPROPRIATED.] (a) The consumer education account is created in 
  2.26  the special revenue fund.  Money credited to this account may be 
  2.27  appropriated to the commissioner for the purpose of making 
  2.28  grants to programs and campaigns designed to help consumers 
  2.29  avoid being victimized by unscrupulous lenders and mortgage 
  2.30  brokers.  Preference shall be given to programs and campaigns 
  2.31  designed by coalitions of public sector, private sector, and 
  2.32  nonprofit agencies, institutions, companies, and organizations. 
  2.33     (b) A sum sufficient is appropriated annually from the 
  2.34  consumer education account to the commissioner to make the 
  2.35  grants described in paragraph (a). 
  2.36     Sec. 5.  Minnesota Statutes 2000, section 60K.19, 
  3.1   subdivision 8, is amended to read: 
  3.2      Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
  3.3   subject to this section shall complete a minimum of 30 credit 
  3.4   hours of courses accredited by the commissioner during each 
  3.5   24-month licensing period.  Any person whose initial licensing 
  3.6   period extends more than six months shall complete 15 hours of 
  3.7   courses accredited by the commissioner during the initial 
  3.8   license period.  Any person teaching or lecturing at an 
  3.9   accredited course qualifies for ~~1-1/2~~ three times the number of 
  3.10  credit hours that would be granted to a person completing the 
  3.11  accredited course.  No more than 15 credit hours per licensing 
  3.12  period may be credited to a person for courses sponsored by, 
  3.13  offered by, or affiliated with an insurance company or its 
  3.14  agents.  Courses sponsored by, offered by, or affiliated with an 
  3.15  insurance company or agent may restrict its students to agents 
  3.16  of the company or agency. 
  3.17     Sec. 6.  Minnesota Statutes 2000, section 72B.04, 
  3.18  subdivision 6, is amended to read: 
  3.19     Subd. 6.  [EXCEPTIONS.] A person who on January 1, 1972, 
  3.20  meets all of the qualifications specified in subdivision 2 with 
  3.21  regard to the class of license applied for and, if experience is 
  3.22  one of the requisites, has gained the experience within the 
  3.23  three years next preceding January 1, 1972, shall be eligible 
  3.24  for the issuance of a license without taking an examination. 
  3.25     A person who has held a license of any given class or in 
  3.26  any field or fields within three years prior to the application 
  3.27  shall be entitled to a renewal of the license in the same class 
  3.28  or in the same fields without taking an examination. 
  3.29     A person applying for a license as a crop hail adjuster 
  3.30  shall not be required to comply with the requirements of 
  3.31  subdivision 5. 
  3.32     The commissioner may issue a license under sections 72B.01 
  3.33  to 72B.14 without an examination, if the applicant presents 
  3.34  sufficient and satisfactory evidence of having passed a similar 
  3.35  examination in another state and if the commissioner, with the 
  3.36  advice of the advisory board, has determined that the standards 
  4.1   of such other state are equivalent to those in Minnesota for the 
  4.2   class of license applied for.  Any applicant who presents 
  4.3   sufficient and satisfactory evidence of having successfully 
  4.4   completed all six parts of the insurance institute of America 
  4.5   program in adjusting or other programs approved by the 
  4.6   commissioner shall be entitled to an adjuster's license without 
  4.7   taking the examination prescribed in subdivision 5. 
  4.8      Sec. 7.  Minnesota Statutes 2000, section 72B.04, 
  4.9   subdivision 7, is amended to read: 
  4.10     Subd. 7.  [LICENSE TERM.] ~~Every adjuster's and public~~ 
  4.11  ~~adjuster solicitor's license shall be for a term expiring on~~ 
  4.12  ~~October 31 next following the date of its issuance, and may be~~ 
  4.13  ~~renewed for the ensuing calendar year upon the timely filing of~~ 
  4.14  ~~an application for renewal.~~  (a) Initial licenses issued under 
  4.15  this section are valid for a period not to exceed two years.  
  4.16  Each initial license must expire on October 31 of the expiration 
  4.17  year assigned by the commissioner. 
  4.18     (b) Licenses issued under this section may be renewed upon 
  4.19  the timely filing of an application for renewal.  Every renewal 
  4.20  license is valid for a period of 24 months. 
  4.21     Sec. 8.  Minnesota Statutes 2000, section 80B.03, 
  4.22  subdivision 4a, is amended to read: 
  4.23     Subd. 4a.  Within three ~~calendar~~ business days of the date 
  4.24  of filing of the registration statement, the commissioner may by 
  4.25  order summarily suspend the effectiveness of the takeover offer 
  4.26  if the commissioner determines that the registration statement 
  4.27  does not contain all of the information specified in 
  4.28  subdivisions 2 and 6 or that the takeover offer materials 
  4.29  provided to offerees do not provide full disclosure to offerees 
  4.30  of all material information concerning the takeover offer.  The 
  4.31  suspension shall remain in effect only until the determination 
  4.32  following a hearing held pursuant to subdivision 5.  
  4.33     Sec. 9.  Minnesota Statutes 2000, section 82.195, 
  4.34  subdivision 2, is amended to read: 
  4.35     Subd. 2.  [CONTENTS.] All listing agreements must be in 
  4.36  writing and must include:  
  5.1      (1) a definite expiration date; 
  5.2      (2) a description of the real property involved; 
  5.3      (3) the list price and any terms required by the seller; 
  5.4      (4) the amount of any compensation or commission or the 
  5.5   basis for computing the commission; 
  5.6      (5) a clear statement explaining the events or conditions 
  5.7   that will entitle a broker to a commission; 
  5.8      (6) information regarding an override clause, if 
  5.9   applicable, including a statement to the effect that the 
  5.10  override clause will not be effective unless the licensee 
  5.11  supplies the seller with a protective list within 72 hours after 
  5.12  the expiration of the listing agreement; 
  5.13     (7) the following notice in not less than ten point 
  5.14  boldface type immediately preceding any provision of the listing 
  5.15  agreement relating to compensation of the licensee:  
  5.16     "NOTICE:  THE ~~COMMISSION RATE~~ COMPENSATION FOR THE SALE, 
  5.17  LEASE, RENTAL, OR MANAGEMENT OF REAL PROPERTY SHALL BE 
  5.18  DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ~~ITS~~ THE BROKER'S 
  5.19  CLIENT."; 
  5.20     (8) for residential property listings, the following "dual 
  5.21  agency" disclosure statement: 
  5.22     If a buyer represented by broker wishes to buy your 
  5.23  property, a dual agency will be created.  This means that broker 
  5.24  will represent both you and the buyer(s), and owe the same 
  5.25  duties to the buyer(s) that broker owes to you.  This conflict 
  5.26  of interest will prohibit broker from advocating exclusively on 
  5.27  your behalf.  Dual agency will limit the level of representation 
  5.28  broker can provide.  If a dual agency should arise, you will 
  5.29  need to agree that confidential information about price, terms, 
  5.30  and motivation will still be kept confidential unless you 
  5.31  instruct broker in writing to disclose specific information 
  5.32  about you.  All other information will be shared.  Broker cannot 
  5.33  act as a dual agent unless both you and the buyer(s) agree to 
  5.34  it.  By agreeing to a possible dual agency, you will be giving 
  5.35  up the right to exclusive representation in an in-house 
  5.36  transaction.  However, if you should decide not to agree to a 
  6.1   possible dual agency, and you want broker to represent you, you 
  6.2   may give up the opportunity to sell your property to buyers 
  6.3   represented by broker. 
  6.4                   Seller's Instructions to Broker 
  6.5      
  6.6      Having read and understood this information about dual 
  6.7   agency, seller(s) now instructs broker as follows: 
  6.8   .......     Seller(s) will agree to a dual agency 
  6.9               representation and will consider offers made 
  6.10              by buyers represented by broker. 
  6.11     
  6.12  .......     Seller will not agree to a dual agency
  6.13              representation and will not consider offers
  6.14              made by buyers represented by broker. 
  6.15     
  6.16     
  6.17  .........................      ......................... 
  6.18  Seller                         Broker 
  6.19     
  6.20     
  6.21  .........................      By:  .................... 
  6.22  Seller                              Salesperson 
  6.23     
  6.24  Date:  ..................; 
  6.25     (9) a notice requiring the seller to indicate in writing 
  6.26  whether it is acceptable to the seller to have the licensee 
  6.27  arrange for closing services or whether the seller wishes to 
  6.28  arrange for others to conduct the closing~~.  The notice must also~~ 
  6.29  ~~include the disclosure of any controlled business arrangement,~~ 
  6.30  ~~as the term is defined in United States Code, title 12, section~~ 
  6.31  ~~2602, between the licensee and the real estate closing agent~~ 
  6.32  ~~through which the licensee proposes to arrange closing services~~; 
  6.33  and 
  6.34     (10) for residential listings, a notice stating that after 
  6.35  the expiration of the listing agreement, the seller will not be 
  6.36  obligated to pay the licensee a fee or commission if the seller 
  7.1   has executed another valid listing agreement pursuant to which 
  7.2   the seller is obligated to pay a fee or commission to another 
  7.3   licensee for the sale, lease, or exchange of the real property 
  7.4   in question.  This notice may be used in the listing agreement 
  7.5   for any other type of real estate.  
  7.6      Sec. 10.  Minnesota Statutes 2000, section 82.196, 
  7.7   subdivision 2, is amended to read: 
  7.8      Subd. 2.  [CONTENTS.] All buyer's broker agreements must be 
  7.9   in writing and must include:  
  7.10     (1) a definite expiration date; 
  7.11     (2) the amount of any compensation or commission, or the 
  7.12  basis for computing the commission; 
  7.13     (3) a clear statement explaining the services to be 
  7.14  provided to the buyer by the broker, and the events or 
  7.15  conditions that will entitle a broker to a commission or other 
  7.16  compensation; 
  7.17     (4) ~~a provision for cancellation of the agreement by either~~ 
  7.18  ~~party upon terms agreed upon by the parties;~~ a clear statement 
  7.19  explaining if the agreement may be canceled and the terms under 
  7.20  which the agreement may be canceled; 
  7.21     (5) information regarding an override clause, if 
  7.22  applicable, including a statement to the effect that the 
  7.23  override clause will not be effective unless the licensee 
  7.24  supplies the buyer with a protective list within 72 hours after 
  7.25  the expiration of the buyer's broker agreement; 
  7.26     (6) the following notice in not less than ten point bold 
  7.27  face type immediately preceding any provision of the buyer's 
  7.28  broker agreement relating to compensation of the licensee: 
  7.29     "NOTICE:  THE ~~COMMISSION RATE~~ COMPENSATION FOR THE 
  7.30  PURCHASE, LEASE, RENTAL, OR MANAGEMENT OF REAL PROPERTY ~~IS~~ 
  7.31  ~~NEGOTIABLE AND~~ SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL 
  7.32  BROKER AND ~~ITS~~ THE BROKER'S CLIENT."; 
  7.33     (7) the following "dual agency" disclosure statement: 
  7.34     If you choose to purchase a property listed by broker, a 
  7.35  dual agency will be created.  This means that broker will 
  7.36  represent both you and the seller(s), and owe the same duties to 
  8.1   the seller(s) that broker owes to you.  This conflict of 
  8.2   interest will prohibit broker from advocating exclusively on 
  8.3   your behalf.  Dual agency will limit the level of representation 
  8.4   broker can provide.  If a dual agency should arise, you will 
  8.5   need to agree that confidential information about price, terms, 
  8.6   and motivation will still be kept confidential unless you 
  8.7   instruct broker in writing to disclose specific information 
  8.8   about you.  All other information will be shared.  Broker cannot 
  8.9   act as a dual agent unless both you and the seller(s) agree to 
  8.10  it.  By agreeing to a possible dual agency, you will be giving 
  8.11  up the right to exclusive representation in an in-house 
  8.12  transaction.  However, if you should decide not to agree to a 
  8.13  possible dual agency, and you want broker to represent you, you 
  8.14  may give up the opportunity to purchase the properties listed by 
  8.15  broker. 
  8.16                   Buyer's Instructions to Broker 
  8.17     
  8.18  .......      Buyer(s) will agree to a dual agency representation 
  8.19               and will consider properties listed by broker.
  8.20     
  8.21  .......      Buyer will not agree to a dual agency 
  8.22               representation and will not consider 
  8.23               properties listed by broker. 
  8.24     
  8.25     
  8.26  .........................      ......................... 
  8.27  Buyer                          Broker 
  8.28     
  8.29  .........................      By:  .................... 
  8.30  Buyer                               Salesperson 
  8.31     
  8.32  Date:  ...................; and 
  8.33     (8) for buyer's broker agreements which involve residential 
  8.34  real property, a notice stating that after the expiration of the 
  8.35  buyer's broker agreement, the buyer will not be obligated to pay 
  8.36  the licensee a fee or commission if the buyer has executed 
  9.1   another valid buyer's broker agreement pursuant to which the 
  9.2   buyer is obligated to pay a fee or commission to another 
  9.3   licensee for the purchase, lease, or exchange of real property. 
  9.4      Sec. 11.  Minnesota Statutes 2000, section 82.197, 
  9.5   subdivision 1, is amended to read: 
  9.6      Subdivision 1.  [AGENCY DISCLOSURE.] A real estate broker 
  9.7   or salesperson shall provide to a consumer in the sale and 
  9.8   purchase of a residential real property transaction at the first 
  9.9   substantive contact with the consumer an agency disclosure form 
  9.10  in substantially the form set forth in subdivision 4.  The 
  9.11  agency disclosure form shall be intended to provide a 
  9.12  description of available options for agency and nonagency 
  9.13  relationships, and a description of the role of a licensee under 
  9.14  each option.  The agency disclosure form shall provide a 
  9.15  signature line for acknowledgment of receipt by the consumer. 
  9.16     Sec. 12.  Minnesota Statutes 2000, section 82.197, 
  9.17  subdivision 4, is amended to read: 
  9.18     Subd. 4.  [AGENCY DISCLOSURE FORM.] The agency disclosure 
  9.19  form shall be in substantially the form set forth below: 
  9.20        <b> AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS</b>
  9.21  <b>Minnesota law requires</b> that early in any relationship, real 
  9.22  estate brokers or salespersons discuss with consumers what type 
  9.23  of agency representation or relationship they desire.(1)  The 
  9.24  available options are listed below.  This is <b>not</b> a contract.  
  9.25  <b>This is an agency disclosure form only.  If you desire</b> 
  9.26  <b>representation, you must enter into a written contract according</b> 
  9.27  <b>to state law</b> (a listing contract or a buyer representation 
  9.28  contract).  Until such time as you choose to enter into a 
  9.29  written contract for representation ~~or assistance~~, you will be 
  9.30  treated as a customer ~~of the broker or salesperson and not~~ 
  9.31  ~~represented by the brokerage~~ and will not receive any 
  9.32  representation from the broker or salesperson.  The broker or 
  9.33  salesperson ~~would then~~ will be acting as a ~~Seller's broker~~ 
  9.34  Facilitator (see paragraph ~~I~~ V below), ~~or as a nonagent (see~~ 
  9.35  ~~paragraph IV below)~~ unless the broker or salesperson is 
  9.36  representing another party as described below. 
 10.1      ACKNOWLEDGMENT:  I/We acknowledge that I/We have been 
 10.2   presented with the below-described options.  I/We understand 
 10.3   that until I/We have signed a representation contract, I/We are 
 10.4   not represented by the broker/salesperson and information given 
 10.5   to the broker/salesperson may be disclosed.  I/We understand 
 10.6   that written consent is required for a dual agency 
 10.7   relationship.  THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR 
 10.8   REPRESENTATION. 
 10.9   ...............     .......... 
 10.10  Signature           Date
 10.11  ...............     .......... 
 10.12  Signature           Date
 10.13  I.
 10.14     <b>Seller's Broker:</b>  A broker who lists a property, or a 
 10.15     salesperson who is licensed to the listing broker, 
 10.16     represents the Seller and acts on behalf of the Seller.  ~~A~~ 
 10.17     ~~broker or salesperson working with a Buyer may also act as~~ 
 10.18     ~~a subagent of the Seller, in which case the Buyer is the~~ 
 10.19     ~~broker's customer and is not represented by that broker.~~  A 
 10.20     Seller's broker owes to the Seller the fiduciary duties 
 10.21     described below.(2)  The broker must also disclose to the 
 10.22     Buyer ~~any~~ material facts as defined in Minnesota Statutes, 
 10.23     section 82.197, subdivision 6, of which the broker is aware 
 10.24     that could adversely and significantly affect the Buyer's 
 10.25     use or enjoyment of the property.  If a broker or 
 10.26     salesperson ~~who is~~ working with a Buyer as a customer ~~and~~ 
 10.27     is representing the Seller ~~and to whom any information is~~ 
 10.28     ~~disclosed~~, he or she must act in the Seller's ~~interests~~ 
 10.29     best interest and must tell the Seller ~~the~~ any information 
 10.30     disclosed to him or her, except confidential information 
 10.31     acquired in a facilitator relationship (see paragraph V 
 10.32     below).  In that case, the Buyer will not be represented 
 10.33     and will not receive advice and counsel from the broker or 
 10.34     salesperson. 
 10.35  II. 
 10.36     <b>Subagent:</b>  A broker or salesperson who is working with a 
 11.1      Buyer but represents the Seller.  In this case, the Buyer 
 11.2      is the broker's customer and is not represented by that 
 11.3      broker.  If a broker or salesperson working with a Buyer as 
 11.4      a customer is representing the Seller, he or she must act 
 11.5      in the Seller's best interest and must tell the Seller any 
 11.6      information that is disclosed to him or her.  In that case, 
 11.7      the Buyer will not be represented and will not receive 
 11.8      advice and counsel from the broker or salesperson. 
 11.9   III.
 11.10     <b>Buyer's Broker:</b>  A Buyer may enter into an agreement for 
 11.11     the broker or salesperson to represent and act on behalf of 
 11.12     the Buyer.  The broker may represent the Buyer only, and 
 11.13     not the Seller, even if ~~the broker~~ he or she is being paid 
 11.14     in whole or in part by the Seller.  A Buyer's broker owes 
 11.15     to the Buyer the fiduciary duties described below.(2)  The 
 11.16     broker must disclose to the Buyer ~~any~~ material facts as 
 11.17     defined in Minnesota Statutes, section 82.197, subdivision 
 11.18     6, of which the broker is aware that could adversely and 
 11.19     significantly affect the Buyer's use or enjoyment of the 
 11.20     property.  If a broker or salesperson working with a Seller 
 11.21     as a customer is representing the Buyer, he or she must act 
 11.22     in the Buyer's best interest and must tell the Buyer any 
 11.23     information disclosed to him or her, except confidential 
 11.24     information acquired in a facilitator relationship (see 
 11.25     paragraph V below).  In that case, the Seller will not be 
 11.26     represented and will not receive advice and counsel from 
 11.27     the broker or salesperson. 
 11.28  ~~III.~~ IV.
 11.29     <b>Dual Agency-Broker Representing both Seller and Buyer:</b>  
 11.30     Dual agency occurs when one broker or salesperson 
 11.31     represents both parties to a transaction, or when two 
 11.32     salespersons licensed to the same broker each represent a 
 11.33     party to the transaction.  Dual agency requires the 
 11.34     informed consent of all parties, and means that the broker 
 11.35     and salesperson owe the same duties to the Seller and the 
 11.36     Buyer.  This role limits the level of representation the 
 12.1      broker and salespersons can provide, and prohibits them 
 12.2      from acting exclusively for either party.  In a dual 
 12.3      agency, confidential information about price, terms, and 
 12.4      motivation for pursuing a transaction will be kept 
 12.5      confidential unless one party instructs the broker or 
 12.6      salesperson in writing to disclose specific information 
 12.7      about ~~the party writing~~ him or her.  Other information will 
 12.8      be shared.  Dual agents may not advocate for one party to 
 12.9      the detriment of the other.(3) 
 12.10     Within the limitations described above, dual agents owe to 
 12.11     both Seller and Buyer the fiduciary duties described 
 12.12     below.(2)  Dual agents must disclose to Buyers ~~any~~ material 
 12.13     facts as defined in Minnesota Statutes, section 82.197, 
 12.14     subdivision 6, of which the broker is aware that could 
 12.15     adversely and significantly affect the Buyer's use or 
 12.16     enjoyment of the property. 
 12.17  ~~IV.~~ V.
 12.18     <b>~~Nonagent~~ Facilitator:</b>  A broker or salesperson ~~may perform~~ 
 12.19     who performs services for ~~either party as a nonagent, if~~ 
 12.20     ~~that party signs a nonagency services agreement~~ a Buyer, a 
 12.21     Seller, or both but does not represent either in a 
 12.22     fiduciary capacity as a Buyer's Broker, Seller's Broker, or 
 12.23     Dual Agent.  ~~As a nonagent the broker or salesperson~~ 
 12.24     ~~facilitates the transaction, but does not act on behalf of~~ 
 12.25     ~~either party.~~  <b>THE ~~NONAGENT~~ FACILITATOR BROKER OR</b> 
 12.26     <b>SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY</b> 
 12.27     <b>DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE</b> 
 12.28     <b>DUTIES ARE INCLUDED IN THE WRITTEN ~~NONAGENCY~~ FACILITATOR</b> 
 12.29     <b>SERVICES AGREEMENT.</b>  The ~~nonagent~~ facilitator broker or 
 12.30     salesperson owes ~~only~~ the duty of confidentiality to the 
 12.31     party but owes no other duty to the party except those 
 12.32     duties required by law or contained in ~~the~~ a written 
 12.33     ~~nonagency~~ facilitator services agreement, if any.  In the 
 12.34     event a facilitator broker or salesperson, working with a 
 12.35     Buyer, shows a property listed by the facilitator broker or 
 12.36     salesperson, then the facilitator broker or salesperson 
 13.1      must act as a Seller's Broker (see paragraph I above).  In 
 13.2      the event a facilitator broker or salesperson, working with 
 13.3      a Seller, accepts a showing of the property by a Buyer 
 13.4      being represented by the facilitator broker or salesperson, 
 13.5      then the facilitator broker or salesperson must act as a 
 13.6      Buyer's Broker (see paragraph III above). 
 13.7   <b>~~ACKNOWLEDGMENT:  I/We acknowledge that I/We have been presented~~</b> 
 13.8   <b>~~with the above-described options.  I/We understand that Buyers~~</b> 
 13.9   <b>~~who have not signed a Buyer representation contract or nonagency~~</b> 
 13.10  <b>~~services agreement are not represented by the broker/salesperson~~</b> 
 13.11  <b>~~and information given to the broker/salesperson will be~~</b> 
 13.12  <b>~~disclosed to the Seller.  I/We understand that written consent~~</b> 
 13.13  <b>~~is required for a dual agency relationship.  This is a~~</b> 
 13.14  <b>~~disclosure only, NOT a contract for representation.~~</b> 
 13.15  ~~<b>.........................~~</b>       ~~<b>........................~~</b> 
 13.16    ~~<b>Seller~~</b>            ~~<b>Date~~</b>         ~~<b>Buyer~~</b>              ~~<b>Date~~</b>
 13.18  ~~<b>.........................~~ </b>      ~~<b>........................~~</b> 
 13.19    ~~<b>Seller~~</b>            ~~<b>Date~~</b>         ~~<b>Buyer~~</b>              ~~<b>Date~~</b> 
 13.23  **************************************************************** 
 13.24     (1) This disclosure is required by law in any transaction 
 13.25  involving property occupied or intended to be occupied by one to 
 13.26  four families as their residence. 
 13.27     (2) The fiduciary duties mentioned above are listed below 
 13.28  and have the following meanings: 
 13.29     Loyalty-broker/salesperson will act only in client(s)' best 
 13.30  interest. 
 13.31     Obedience-broker/salesperson will carry out all client(s)' 
 13.32  lawful instructions. 
 13.33     Disclosure-broker/salesperson will disclose to client(s) 
 13.34  all material facts of which broker/salesperson has knowledge 
 13.35  which might reasonably affect the client's rights and interests. 
 13.36     Confidentiality-broker/salesperson will keep client(s)' 
 14.1   confidences unless required by law to disclose specific 
 14.2   information (such as disclosure of material facts to Buyers). 
 14.3      Reasonable Care-broker/salesperson will use reasonable care 
 14.4   in performing duties as an agent. 
 14.5      Accounting-broker/salesperson will account to client(s) for 
 14.6   all client(s)' money and property received as agent. 
 14.7      (3) If Seller(s) decides not to agree to a dual agency 
 14.8   relationship, Seller(s) may give up the opportunity to sell the 
 14.9   property to Buyers represented by the broker/salesperson.  If 
 14.10  Buyer(s) decides not to agree to a dual agency relationship, 
 14.11  Buyer(s) may give up the opportunity to purchase properties 
 14.12  listed by the broker. 
 14.13     Sec. 13.  Minnesota Statutes 2000, section 82.197, is 
 14.14  amended by adding a subdivision to read: 
 14.15     Subd. 6.  [MATERIAL FACTS.] (a) Licensees shall disclose to 
 14.16  any prospective purchaser all material facts of which the 
 14.17  licensees are aware, which could adversely and significantly 
 14.18  affect an ordinary purchaser's use or enjoyment of the property, 
 14.19  or any intended use of the property of which the licensees are 
 14.20  aware. 
 14.21     (b) It is not a material fact relating to real property 
 14.22  offered for sale and no regulatory action shall be brought 
 14.23  against a licensee for failure to disclose in any real estate 
 14.24  transaction the fact or suspicion that the property: 
 14.25     (1) is or was occupied by an owner or occupant who is or 
 14.26  was suspected to be infected with human immunodeficiency virus 
 14.27  or diagnosed with acquired immunodeficiency syndrome; or 
 14.28     (2) was the site of an accidental death, natural death, or 
 14.29  perceived paranormal activity.  
 14.30     (c) A licensee or employee of the licensee has no duty to 
 14.31  disclose information regarding an offender who is required to 
 14.32  register under section 243.166, or about whom notification is 
 14.33  made under that section, if the broker or salesperson, in a 
 14.34  timely manner, provides a written notice that information about 
 14.35  the predatory offender registry and persons registered with the 
 14.36  registry may be obtained by contacting local law enforcement 
 15.1   where the property is located or the department of corrections. 
 15.2      (d) A licensee is not required to disclose, except as 
 15.3   otherwise provided in paragraph (e), information relating to the 
 15.4   physical condition of the property or any other information 
 15.5   relating to the real estate transaction, if a written report 
 15.6   that discloses the information has been prepared by a qualified 
 15.7   third party and provided to the person.  For the purposes of 
 15.8   this paragraph, "qualified third party" means a federal, state, 
 15.9   or local governmental agency, or any person whom the broker, 
 15.10  salesperson, or a party to the real estate transaction 
 15.11  reasonably believes has the expertise necessary to meet the 
 15.12  industry standards of practice for the type of inspection or 
 15.13  investigation that has been conducted by the third party in 
 15.14  order to prepare the written report and who is acceptable to the 
 15.15  person to whom the disclosure is being made. 
 15.16     (e) A licensee shall disclose to the parties to a real 
 15.17  estate transaction any facts known by the broker or salesperson 
 15.18  that contradict any information included in a written report, if 
 15.19  a copy of the report is provided to the licensee, described in 
 15.20  paragraph (d). 
 15.21     Sec. 14.  Minnesota Statutes 2000, section 82.22, 
 15.22  subdivision 13, is amended to read: 
 15.23     Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
 15.24  renewal date, all real estate salespersons and all real estate 
 15.25  brokers shall be required to successfully complete 30 hours of 
 15.26  real estate continuing education, either as a student or a 
 15.27  lecturer, in courses of study approved by the commissioner, 
 15.28  during each 24-month license period.  At least 15 of the 30 
 15.29  credit hours must be completed during the first 12 months of the 
 15.30  24-month licensing period.  Salespersons and brokers whose 
 15.31  initial license period extends more than 12 months are required 
 15.32  to complete 15 hours of real estate continuing education during 
 15.33  the initial license period.  Those licensees who will receive a 
 15.34  12-month license on July 1, 1995, because of the staggered 
 15.35  implementation schedule must complete 15 hours of real estate 
 15.36  continuing education as a requirement for renewal on July 1, 
 16.1   1996.  Licensees may not claim credit for continuing education 
 16.2   not actually completed as of the date their report of continuing 
 16.3   education compliance is filed. 
 16.4      (b) The commissioner shall adopt rules defining the 
 16.5   standards for course and instructor approval, and may adopt 
 16.6   rules for the proper administration of this subdivision.  The 
 16.7   commissioner may not approve a course which can be completed by 
 16.8   the student at home or outside the classroom without the 
 16.9   supervision of an instructor ~~approved by the department of~~ 
 16.10  ~~commerce.  The commissioner has discretion to establish a pilot~~ 
 16.11  ~~program to explore delivery of~~ except accredited courses using 
 16.12  new delivery technology, including interactive technology, and 
 16.13  the Internet.  ~~This pilot program expires on August 1,~~ 
 16.14  ~~2001.~~  Courses in motivation, salesmanship, psychology, or time 
 16.15  management shall not be approved by the commissioner for 
 16.16  continuing education credit. 
 16.17     (c) Any program approved by Minnesota continuing legal 
 16.18  education shall be approved by the commissioner of commerce for 
 16.19  continuing education for real estate brokers and salespeople if 
 16.20  the program or any part thereof relates to real estate.  
 16.21     (d) As part of the continuing education requirements of 
 16.22  this section, the commissioner shall require that all real 
 16.23  estate brokers and salespersons receive: 
 16.24     (1) at least ~~two hours~~ one hour of training during each 
 16.25  license period in courses in laws or regulations on agency 
 16.26  representation and disclosure; and 
 16.27     (2) at least ~~two hours~~ one hour of training during each 
 16.28  license period in courses in state and federal fair housing 
 16.29  laws, regulations, and rules, ~~or~~ other antidiscrimination laws, 
 16.30  or courses designed to help licensees to meet the housing needs 
 16.31  of immigrant and other underserved populations. 
 16.32     ~~Clause~~ Clauses (1) ~~does~~ and (2) do not apply to real estate 
 16.33  salespersons and real estate brokers engaged solely in the 
 16.34  commercial real estate business who file with the commissioner a 
 16.35  verification of this status along with the continuing education 
 16.36  report required under paragraph (a). 
 17.1      (e) The commissioner is authorized to establish a procedure 
 17.2   for renewal of course accreditation. 
 17.3      (f) Approved courses may be sponsored or offered by a 
 17.4   broker of a real estate company and may be held on the premises 
 17.5   of a company licensed under this chapter.  All course offerings 
 17.6   must be open to any interested individuals.  Access may be 
 17.7   restricted by the sponsor based on class size only.  Courses 
 17.8   must not be approved if attendance is restricted to any 
 17.9   particular group of people.  A broker must comply with all 
 17.10  continuing education rules prescribed by the commissioner. 
 17.11     (g) No more than one-half of the credit hours per licensing 
 17.12  period, including continuing education required under 
 17.13  subdivision 6, may be credited to a person for attending any 
 17.14  combination of courses either:  
 17.15     (1) sponsored by, offered by, or affiliated with a real 
 17.16  estate company or its agents; or 
 17.17     (2) offered using new delivery technology, including 
 17.18  interactive technology, and the Internet. 
 17.19     Sec. 15.  Minnesota Statutes 2000, section 82.24, 
 17.20  subdivision 8, is amended to read: 
 17.21     Subd. 8.  [ACCRUED INTEREST.] (a) Each broker shall 
 17.22  maintain a pooled interest-bearing trust account for deposit of 
 17.23  client funds.  The interest accruing on the trust account, less 
 17.24  reasonable transaction costs, must be paid to the state 
 17.25  treasurer for deposit in the housing trust fund account created 
 17.26  under section 462A.201 unless otherwise specified pursuant to an 
 17.27  expressed written agreement between the parties to a transaction.
 17.28     (b) For an account created under paragraph (a), each broker 
 17.29  shall direct the financial institution to:  
 17.30     (1) pay the interest, less reasonable transaction costs, 
 17.31  computed in accordance with the financial institution's standard 
 17.32  accounting practice, at least quarterly, to the state treasurer; 
 17.33  and 
 17.34     (2) send a statement to the state treasurer showing the 
 17.35  name of the broker for whom the payment is made, the rate of 
 17.36  interest applied, the amount of service charges deducted, and 
 18.1   the account balance for the period in which the report is made. 
 18.2      The state treasurer shall credit the amount collected under 
 18.3   this subdivision to the housing trust fund account established 
 18.4   in section 462A.201. 
 18.5      (c) The financial institution must promptly notify the 
 18.6   commissioner if a draft drawn on the account is dishonored.  A 
 18.7   draft is not dishonored if a stop payment order is requested by 
 18.8   an issuer who has a good faith defense to payment on the draft. 
 18.9      Sec. 16.  Minnesota Statutes 2000, section 82.27, 
 18.10  subdivision 3, is amended to read: 
 18.11     Subd. 3.  [ORDER TO SHOW CAUSE.] The commissioner shall 
 18.12  issue an order requiring a licensee or applicant for a license 
 18.13  to show cause why the license should not be revoked or 
 18.14  suspended, or the licensee censured, or the application denied.  
 18.15  The order shall be calculated to give reasonable notice of the 
 18.16  time and place for hearing thereon, and shall state the ~~reasons~~ 
 18.17  specific statute or rule that has been violated for the entry of 
 18.18  the order.  The commissioner may by order summarily suspend a 
 18.19  license pending final determination of any order to show cause.  
 18.20  If a license is suspended pending final determination of an 
 18.21  order to show cause, a hearing on the merits shall be held 
 18.22  within 30 days of the issuance of the order of suspension.  All 
 18.23  hearings shall be conducted in accordance with the provisions of 
 18.24  chapter 14.  After the hearing, the commissioner shall enter an 
 18.25  order making such disposition of the matter as the facts 
 18.26  require.  If the licensee or applicant fails to appear at a 
 18.27  hearing after having been duly notified of it, such person shall 
 18.28  be deemed in default, and the proceeding may be determined 
 18.29  against the licensee or applicant upon consideration of the 
 18.30  order to show cause, the allegations of which may be deemed to 
 18.31  be true. 
 18.32     Sec. 17.  Minnesota Statutes 2000, section 82.34, is 
 18.33  amended by adding a subdivision to read: 
 18.34     Subd. 7a.  [ACCELERATED CLAIMS PAYMENT.] (a) The 
 18.35  commissioner shall pay claims from the recovery portion of the 
 18.36  fund that do not exceed the jurisdiction limits for conciliation 
 19.1   court matters as specified in section 491A.01 on an accelerated 
 19.2   basis if all of the requirements in subdivision 7 and paragraphs 
 19.3   (b) to (f) have been satisfied. 
 19.4      (b) When any aggrieved person as defined in subdivision 7 
 19.5   obtains a judgment in any court of competent jurisdiction, 
 19.6   regardless of whether the judgment has been discharged by a 
 19.7   bankruptcy court against a licensee on grounds specified in 
 19.8   subdivision 7, the aggrieved person may file a verified 
 19.9   application with the commissioner for payment out of the 
 19.10  recovery portion of the fund of the amount of actual and direct 
 19.11  out-of-pocket loss in the transaction, but excluding any 
 19.12  attorney fees, interest on the loss, and on any judgment 
 19.13  obtained as a result of the loss, up to the conciliation court 
 19.14  jurisdiction limits, of the amount unpaid upon the judgment.  
 19.15  For purposes of this section, persons who are joint tenants or 
 19.16  tenants in common are deemed to be a single claimant. 
 19.17     (c) The commissioner shall send the licensee a copy of the 
 19.18  verified application by first-class mail to the licensee's 
 19.19  address as it appears in the records of the department of 
 19.20  commerce with a notice that the claim will be paid 15 days from 
 19.21  the date of the notice unless the licensee notifies the 
 19.22  commissioner before that date of the commencement of an appeal 
 19.23  of the judgment, if the time for appeal has not expired, and 
 19.24  that payment of the claim will result in automatic suspension of 
 19.25  the licensee's license. 
 19.26     (d) If the licensee does not notify the commissioner of the 
 19.27  commencement of an appeal, the commissioner shall pay the claim 
 19.28  at the end of the 15-day period. 
 19.29     (e) If an appeal is commenced, the payment of the claim is 
 19.30  stayed until the conclusion of the appeal. 
 19.31     (f) The commissioner may pay claims which total no more 
 19.32  than $50,000 against the licensee under this accelerated 
 19.33  process.  The commissioner may prorate the amount of claims paid 
 19.34  under this subdivision if claims in excess of $50,000 against 
 19.35  the licensee are submitted.  Any unpaid portions of these claims 
 19.36  must be satisfied in the manner set forth in subdivision 7. 
 20.1      Sec. 18.  Minnesota Statutes 2000, section 82.34, 
 20.2   subdivision 15, is amended to read: 
 20.3      Subd. 15.  Any sums received by the commissioner pursuant 
 20.4   to any provisions of this section shall be deposited in the 
 20.5   state treasury, and credited to the real estate education, 
 20.6   research and recovery fund, and said sums shall be allocated 
 20.7   exclusively for the purposes provided in this section.  All 
 20.8   moneys in the fund are appropriated annually to the commissioner 
 20.9   for the purposes of this section. 
 20.10     All money credited to the fund under section 462A.201 may 
 20.11  only be used for purposes under subdivision 6, clause (g).  
 20.12  Beginning in 1990, the commissioner must, on February 1 of each 
 20.13  year, review the amount of money spent or allocated for uses 
 20.14  under subdivision 6, clause (g), for the previous calendar 
 20.15  year.  If the amount spent or allocated is less than the amount 
 20.16  credited to the fund under section 462A.201 during the same 
 20.17  calendar year, the difference must be transferred from the fund 
 20.18  to the housing trust fund account established in section 
 20.19  462A.201.  If the fund balance exceeds $2,000,000, the 
 20.20  commissioner may suspend the fee imposed under subdivision 3. 
 20.21     Sec. 19.  Minnesota Statutes 2000, section 82B.14, is 
 20.22  amended to read: 
 20.23     82B.14 [EXPERIENCE REQUIREMENT.] 
 20.24     (a) As a prerequisite for licensing as a ~~registered real~~ 
 20.25  ~~property appraiser or~~ licensed real property appraiser, an 
 20.26  applicant must present evidence satisfactory to the commissioner 
 20.27  that the person has obtained 2,000 hours of experience in real 
 20.28  property appraisal. 
 20.29     As a prerequisite for licensing as a certified residential 
 20.30  real property appraiser, an applicant must present evidence 
 20.31  satisfactory to the commissioner that the person has obtained 
 20.32  2,500 hours of experience in real property appraisal. 
 20.33     As a prerequisite for licensing as a certified general real 
 20.34  property appraiser, an applicant must present evidence 
 20.35  satisfactory to the commissioner that the person has obtained 
 20.36  3,000 hours of experience in real property appraisal.  At least 
 21.1   50 percent, or 1,500 hours, must be in nonresidential appraisal 
 21.2   work. 
 21.3      (b) Each applicant for license under section 82B.11, 
 21.4   subdivision 3, 4, or 5, shall give under oath a detailed listing 
 21.5   of the real estate appraisal reports or file memoranda for which 
 21.6   experience is claimed by the applicant.  Upon request, the 
 21.7   applicant shall make available to the commissioner for 
 21.8   examination, a sample of appraisal reports that the applicant 
 21.9   has prepared in the course of appraisal practice. 
 21.10     (c) Applicants may not receive credit for experience 
 21.11  accumulated while unlicensed, if the experience is based on 
 21.12  activities which required a license under this section. 
 21.13     Sec. 20.  Minnesota Statutes 2000, section 317A.203, is 
 21.14  amended to read: 
 21.15     317A.203 [NUMBER.] 
 21.16     A board of directors must consist of three or more 
 21.17  individuals, with the number specified in or fixed in accordance 
 21.18  with the articles or bylaws~~, except that if the corporation has~~ 
 21.19  ~~either one or two members with voting rights, the number of~~ 
 21.20  ~~directors may be less than three but not less than the number of~~ 
 21.21  ~~members with voting rights~~. 
 21.22     Sec. 21.  Minnesota Statutes 2000, section 326.91, 
 21.23  subdivision 1, is amended to read: 
 21.24     Subdivision 1.  [CAUSE.] The commissioner may by order 
 21.25  deny, suspend, or revoke any license or may censure a licensee, 
 21.26  and may impose a civil penalty as provided for in section 
 21.27  45.027, subdivision 6, if the commissioner finds that the order 
 21.28  is in the public interest, and that the applicant, licensee, or 
 21.29  affiliate of an applicant or licensee, or other agent, owner, 
 21.30  partner, director, governor, shareholder, member, officer, 
 21.31  qualifying person, or managing employee of the applicant or 
 21.32  licensee or any person occupying a similar status or performing 
 21.33  similar functions:  
 21.34     (1) has filed an application for a license which is 
 21.35  incomplete in any material respect or contains any statement 
 21.36  which, in light of the circumstances under which it is made, is 
 22.1   false or misleading with respect to any material fact; 
 22.2      (2) has engaged in a fraudulent, deceptive, or dishonest 
 22.3   practice; 
 22.4      (3) is permanently or temporarily enjoined by any court of 
 22.5   competent jurisdiction from engaging in or continuing any 
 22.6   conduct or practice involving any aspect of the business; 
 22.7      (4) has failed to reasonably supervise employees, agents, 
 22.8   subcontractors, or salespersons, or has performed negligently or 
 22.9   in breach of contract, so as to cause injury or harm to the 
 22.10  public; 
 22.11     (5) has violated or failed to comply with any provision of 
 22.12  sections 326.83 to 326.98 or any rule or order under sections 
 22.13  326.83 to 326.98; 
 22.14     (6) has been shown to be incompetent, untrustworthy, or 
 22.15  financially irresponsible; 
 22.16     (7) has been convicted of a violation of the State Building 
 22.17  Code or, in jurisdictions that do not enforce the State Building 
 22.18  Code, has refused to correct a violation of the State Building 
 22.19  Code when the violation has been certified by a Minnesota 
 22.20  licensed structural engineer; 
 22.21     (8) has failed to use the proceeds of any payment made to 
 22.22  the licensee for the construction of, or any improvement to, 
 22.23  residential real estate, as defined in section 326.83, 
 22.24  subdivision 17, for the payment of labor, skill, material, and 
 22.25  machinery contributed to the construction or improvement, 
 22.26  knowing that the cost of any labor performed, or skill, 
 22.27  material, or machinery furnished for the improvement remains 
 22.28  unpaid; 
 22.29     (9) has not furnished to the person making payment either a 
 22.30  valid lien waiver as to any unpaid labor performed, or skill, 
 22.31  material, or machinery furnished for an improvement, or a 
 22.32  payment bond in the basic amount of the contract price for the 
 22.33  improvement conditioned for the prompt payment to any person or 
 22.34  persons entitled to payment; 
 22.35     (10) has engaged in conduct which was the basis for a 
 22.36  contractor's recovery fund payment pursuant to section 326.975, 
 23.1   which payment has not been reimbursed; 
 23.2      (11) has engaged in bad faith, unreasonable delays, or 
 23.3   frivolous claims in defense of a civil lawsuit arising out of 
 23.4   their activities as a licensee under this chapter; 
 23.5      (12) has had a judgment entered against them for failure to 
 23.6   make payments to employees or subcontractors, and all appeals of 
 23.7   the judgment have been exhausted or the period for appeal has 
 23.8   expired; 
 23.9      (13) if unlicensed, has obtained a building permit by the 
 23.10  fraudulent use of a fictitious license number or the license 
 23.11  number of another, or, if licensed, has knowingly allowed an 
 23.12  unlicensed person to use the licensee's license number for the 
 23.13  purpose of fraudulently obtaining a building permit; or 
 23.14     (14) has made use of forged mechanics' lien waivers under 
 23.15  chapter 514. 
 23.16     Sec. 22.  Minnesota Statutes 2000, section 326.975, 
 23.17  subdivision 1, is amended to read: 
 23.18     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
 23.19  fees, each applicant for a license under sections 326.83 to 
 23.20  326.98 shall pay a fee to the contractor's recovery fund.  The 
 23.21  contractor's recovery fund is created in the state treasury and 
 23.22  must be administered by the commissioner in the manner and 
 23.23  subject to all the requirements and limitations provided by 
 23.24  section 82.34 with the following exceptions: 
 23.25     (1) each licensee who renews a license shall pay in 
 23.26  addition to the appropriate renewal fee an additional fee which 
 23.27  shall be credited to the contractor's recovery fund.  The amount 
 23.28  of the fee shall be based on the licensee's gross annual 
 23.29  receipts for the licensee's most recent fiscal year preceding 
 23.30  the renewal, on the following scale: 
 23.31            Fee           Gross Receipts
 23.32            $100          under $1,000,000
 23.33            $150          $1,000,000 to $5,000,000
 23.34            $200          over $5,000,000
 23.35  Any person who receives a new license shall pay a fee based on 
 23.36  the same scale; 
 24.1      (2) the sole purpose of this fund is to compensate any 
 24.2   aggrieved owner or lessee of residential property located within 
 24.3   this state who obtains a final judgment in any court of 
 24.4   competent jurisdiction against a licensee licensed under section 
 24.5   326.84, on grounds of fraudulent, deceptive, or dishonest 
 24.6   practices, conversion of funds, or failure of performance 
 24.7   arising directly out of any transaction when the judgment debtor 
 24.8   was licensed and performed any of the activities enumerated 
 24.9   under section 326.83, subdivision 19, on the owner's residential 
 24.10  property or on residential property rented by the lessee, or on 
 24.11  new residential construction which was never occupied prior to 
 24.12  purchase by the owner, or which was occupied by the licensee for 
 24.13  less than one year prior to purchase by the owner, and which 
 24.14  cause of action arose on or after April 1, 1994; 
 24.15     (3) nothing may obligate the fund for more than $50,000 per 
 24.16  claimant, nor more than ~~$50,000~~ $75,000 per licensee; and 
 24.17     (4) nothing may obligate the fund for claims based on a 
 24.18  cause of action that arose before the licensee paid the recovery 
 24.19  fund fee set in clause (1), or as provided in section 326.945, 
 24.20  subdivision 3.  
 24.21     (b) Should the commissioner pay from the contractor's 
 24.22  recovery fund any amount in settlement of a claim or toward 
 24.23  satisfaction of a judgment against a licensee, the license shall 
 24.24  be automatically suspended upon the effective date of an order 
 24.25  by the court authorizing payment from the fund.  No licensee 
 24.26  shall be granted reinstatement until the licensee has repaid in 
 24.27  full, plus interest at the rate of 12 percent a year, twice the 
 24.28  amount paid from the fund on the licensee's account, and has 
 24.29  obtained a surety bond issued by an insurer authorized to 
 24.30  transact business in this state in the amount of at least 
 24.31  $40,000.  
 24.32     Sec. 23.  Minnesota Statutes 2000, section 332.41, is 
 24.33  amended to read: 
 24.34     332.41 [APPEALS.] 
 24.35     ~~Subdivision 1.  [FILING OF APPEAL.] In the rejection of an~~ 
 24.36  ~~application for a license or the renewal thereof filed under~~ 
 25.1   ~~sections 332.31 to 332.45 or of the suspension or revocation of~~ 
 25.2   ~~a license granted under sections 332.31 to 332.45 the applicant~~ 
 25.3   ~~or licensee may within 90 days after receipt of notice of such~~ 
 25.4   ~~rejection, suspension, or revocation, file an appeal and~~ 
 25.5   ~~thereafter prosecute the appeal in accordance with the~~ 
 25.6   ~~provisions of the statutes governing appeal from, or review of,~~ 
 25.7   ~~decisions of administrative agencies in this state.~~  
 25.8      ~~Subd. 2.  [SUPERSEDEAS.] The filing of an appeal from an~~ 
 25.9   ~~order of the commissioner of commerce rejecting an application~~ 
 25.10  ~~for a license by a collection agency engaged in business as of~~ 
 25.11  ~~July 1, 1969, or rejecting an application for the renewal of a~~ 
 25.12  ~~license, or suspending or revoking a license within 60 days~~ 
 25.13  ~~after the date of such order, shall operate as a supersedeas~~ 
 25.14  ~~which shall continue pending final determination of such appeal.~~ 
 25.15     Appeal from a denial, suspension, revocation, or censure of 
 25.16  a license must be made according to chapter 14. 
 25.17     Sec. 24.  Minnesota Statutes 2000, section 359.02, is 
 25.18  amended to read: 
 25.19     359.02 [TERM.] 
 25.20     A notary commissioned under section 359.01 holds office for 
 25.21  five years, unless sooner removed by the governor or the 
 25.22  district court, or by action of the commissioner.  Within ~~seven~~ 
 25.23  ~~months~~ 60 days before the expiration of the commission a notary 
 25.24  may ~~be reappointed~~ apply for reappointment for a new term to 
 25.25  commence and to be designated in the new commission as beginning 
 25.26  upon the day immediately following the date of the 
 25.27  expiration.  A notary whose commission expires on January 1, 
 25.28  2005, may apply for reappointment six months before the 
 25.29  expiration date.  The reappointment takes effect and is valid 
 25.30  although the appointing governor may not be in the office of 
 25.31  governor on the effective day. 
 25.32     ~~(a) All notary commissions issued before January 31, 1995,~~ 
 25.33  ~~will expire on January 31, 1995.~~ 
 25.34     ~~(b) All notary commissions issued after January 31, 1995,~~ 
 25.35  ~~will expire at the end of the licensing period, which will end~~ 
 25.36  ~~every fifth year following January 31, 1995.~~ 
 26.1      ~~(c)~~ All notary commissions ~~issued during a licensing period~~ 
 26.2   ~~expire at the end of that period as set forth in this~~ 
 26.3   ~~section~~ expire on January 31 of the fifth year following the 
 26.4   year of issue. 
 26.5      Sec. 25.  Minnesota Statutes 2000, section 507.45, 
 26.6   subdivision 3, is amended to read: 
 26.7      Subd. 3.  [REQUIREMENTS FOR REAL ESTATE PERSONNEL.] If the 
 26.8   closing services are to be provided by a real estate broker, 
 26.9   real estate salesperson, or real estate closing agent, the 
 26.10  following regulations shall apply. 
 26.11     (a) The written contract for closing services shall state 
 26.12  in at least 10-point type that the real estate broker, real 
 26.13  estate salesperson, or real estate closing agent has not and, 
 26.14  under applicable state law, may not express opinions regarding 
 26.15  the legal effect of the closing documents or of the closing 
 26.16  itself. 
 26.17     (b) No closing fee may be charged in connection with the 
 26.18  transfer of the legal or equitable ownership of a property if a 
 26.19  closing is performed without either a mortgagee's or owner's 
 26.20  title insurance commitment or a legal opinion regarding the 
 26.21  status of title. 
 26.22     Sec. 26.  [STUDY; FAIR HOUSING TRAINING.] 
 26.23     The commissioner of commerce shall examine the issue of 
 26.24  whether licensed occupations under the jurisdiction of the 
 26.25  department and related to the purchase or financing of 
 26.26  residential housing, including, but not limited to, appraisers, 
 26.27  and employees of licensed mortgage originators and servicers, 
 26.28  should be required to attend continuing education courses in 
 26.29  state and federal fair housing law, and other antidiscrimination 
 26.30  laws, in order to further consumer protection.  The commissioner 
 26.31  shall report the results of the examination to the commerce 
 26.32  committees of the legislature by February 1, 2002. 
 26.33     Sec. 27.  [APPROPRIATION.] 
 26.34     Up to $1,000,000 is appropriated from the real estate 
 26.35  education, research, and recovery fund established under 
 26.36  Minnesota Statutes, section 82.34, to the department of commerce 
 27.1   for an educational campaign aimed at fair housing and 
 27.2   housing-related antidiscrimination initiatives.  The 
 27.3   appropriation must be used for educating real estate licensees 
 27.4   and for a public information campaign across the state on 
 27.5   consumer's rights under current fair housing laws.  The 
 27.6   educational campaign may include, but is not limited to, 
 27.7   television and radio advertisements and printed material.  The 
 27.8   materials used for the public information campaign may be 
 27.9   prepared in multiple languages if necessary. 
 27.10     Sec. 28.  [EFFECTIVE DATE.] 
 27.11     Sections 1 to 8, 13, 19, and 25 are effective the day 
 27.12  following final enactment.  Sections 3 and 4 are repealed 
 27.13  January 1, 2003.  Section 14 is effective July 1, 2001.  Section 
 27.14  22 is effective January 1, 2001, and applies to claims arising 
 27.15  from incidents or conduct occurring on or after that date.