USA Minnesota

USA Statutes : minnesota
Title : SECURITIES, COMMERCIAL REGULATIONS
Chapter : Membership camping practices
82A.01 Citation. This chapter may be cited as the "Membership Camping Practices Act."
82A.02 Definitions. Subdivision 1. Advertisement or
advertising. "Advertisement" or "advertising" means any written
or printed communication or any communication transmitted on radio,
television, electronic means, or similar communications media other
than telephone, published in connection with the offer or sale of
membership camping contracts or to induce prospective purchasers to
visit or attend an offer or sales presentation. Subd. 1a.
Advanced payment. "Advanced payment" means any money paid in
advance regardless of its descriptive nomenclature, including, but
not limited to, a management fee, listing, security, or advance fee
or payment. Subd. 2. Amenity. "Amenity" means any major
recreational building, swimming pool, utility serviced camping sites,
or similar facility which is represented as available for use by
purchasers now or in the future. Subd. 3. Affiliate.
"Affiliate" of another person means any person directly or indirectly
controlling, controlled by, or under common control with the other
person. Subd. 4. Blanket encumbrance. "Blanket
encumbrance" means any mortgage, deed of trust, option to purchase,
vendor's lien or interest under a contract or agreement of sale,
judgment lien, federal or state tax lien, or any other material lien
or encumbrance which secures or evidences the obligation to pay money
or to sell or convey any campground located in this state, or any
portion thereof, made available to purchasers by the membership
camping operator, and which authorizes, permits, or requires the
foreclosure or other disposition of the campground. "Blanket
encumbrance" also includes the lessor's interest in a lease of a
campground which is located in this state, or any portion thereof,
and which is made available to purchasers by a membership camping
operator. "Blanket encumbrance" does not include a lien for taxes or
assessments levied by any public authority which are not yet due and
payable. Subd. 5. Broker. "Broker" means a person who,
for a fee or other valuable consideration, resells a membership
camping contract to a new purchaser on behalf of a prior purchaser or
who engages in the business of buying and selling membership camping
contracts. "Broker" does not include a membership camping operator
or a licensed salesperson acting on behalf of a membership camping
operator or a licensed broker. Subd. 6. Campground.
"Campground" means real property owned or operated by a membership
camping operator which is available for use by purchasers of
membership camping contracts. Campground does not include: (1) a
recreational camping area as defined by section 327.14,
subdivision 8, if the operator of the recreational camping area does
not offer or sell membership camping contracts, but rather rents or
licenses camping sites on the recreational camping area for a per use
fee; or (2) a manufactured home park as defined in section 327.14,
subdivision 3. Subd. 7. Camping site. "Camping site"
means a space on a campground designed and promoted for the purpose
of locating a trailer, tent, tent trailer, pickup camper, or other
similar device used for camping. Subd. 8. Commissioner.
"Commissioner" means the commissioner of commerce of the state of
Minnesota or an authorized delegate. Subd. 9. Controlling
person. "Controlling person" of a membership camping operator
means each director and officer and each owner of 25 percent or more
of stock of the operator, if the operator is a corporation; and each
general partner and each owner of 25 percent or more of the
partnership or other interests, if the operator is a general or
limited partnership or other person doing business as a membership
camping operator. Subd. 10. Membership camping
contract. "Membership camping contract" means an agreement
offered or sold within this state evidencing a purchaser's right or
license to use for more than one year a campground owned or operated
by a membership camping operator and includes a membership which
provides for this use. Subd. 11. Membership camping
operator. "Membership camping operator" or "operator" means any
person, other than one that is tax exempt under section 501(c)(3) of
the Internal Revenue Code of 1986, as amended through December 31,
1992, that owns or operates a campground and offers or sells
membership camping contracts paid for by a fee or periodic payments
and has as one of its purposes camping or outdoor recreation
including use of camping sites by purchasers. "Membership camping
operator" does not include any person who engages in the business of
arranging and selling reciprocal programs except to the extent such
person owns or operates campgrounds. Subd. 12.
Nondisturbance agreement. "Nondisturbance agreement" means any
instrument by which the holder of a blanket encumbrance agrees that:(1) its rights in any campground located in this state made
available to purchasers by the membership camping operator shall be
subordinate to the rights of purchasers; (2) the holder and all
successors and assigns, and any person who acquires a campground
located in this state through foreclosure or by deed in lieu of
foreclosure of the blanket encumbrance, or by default or cancellation
of a lease shall take the property subject to the rights of
purchasers; and (3) the holder or any successor acquiring a
campground located in this state through the blanket encumbrance
shall not use or cause the campground to be used in a manner which
would materially prevent the purchasers from using or occupying the
campground in the manner contemplated by the purchasers' membership
camping contract; provided, however, the holder shall have no
obligation or liability to assume the responsibilities or obligations
of the membership camping operator under the membership camping
contract. The agreement may be in any form or language that
reasonably evidences the foregoing. Subd. 13. Offer.
"Offer" means every inducement, solicitation, or attempt to encourage
a person to acquire a membership camping contract. Subd. 14.Own, owned, or ownership. "Own," "owned," or "ownership"
means to hold title, either legal or equitable, in real property.Subd. 15. Person. "Person" means an individual,
corporation, business trust, estate, trust, partnership,
unincorporated association, two or more of any of the foregoing
having a joint or common interest, or any other legal or commercial
entity. Subd. 16. Purchaser. "Purchaser" means a person
who enters into a membership camping contract with a membership
camping operator and obtains the right to use the campground owned or
operated by the membership camping operator. Subd. 17.
Reciprocal program. "Reciprocal program" means any arrangements
allowing purchasers to use campgrounds owned or operated by persons
other than the membership camping operator with whom the purchaser
has entered into a membership camping contract. Subd. 18.
Sale or sell. "Sale" or "sell" means entering into, or other
disposition of, a membership camping contract for value. "Value"
does not include any fee charged by a membership camping operator to
offset the reasonable costs of transfer of a membership camping
contract from an existing purchaser to a new purchaser. Subd.
19. Salesperson. "Salesperson" means an individual, other
than a membership camping operator or broker, who offers or sells
membership camping contracts, but does not include individuals who
refer persons, provided that the referring party is a current member
of the campground or does not directly or indirectly receive
compensation of more than $150 per referral, does not make more than
15 referrals per year, and has entered into a referral agreement with
a membership camping operator that prohibits the discussion of terms
or prices of camping memberships. The practice of subcontracting
referral services where referral fees are split or shared with
another person is prohibited.
82A.03 Registration requirement. It is unlawful for any
person to offer or sell a membership camping contract in this state
unless: (1) the membership camping contract is registered in
accordance with the provisions of this chapter; or (2) the
membership camping contract or the transaction is exempted under
section 82A.06.
82A.04 Application for registration. Subdivision 1.
Filing fee. A filing fee of $500 shall accompany the application
for registration of membership camping contracts. Subd. 2.
Application contents. The application for registration shall
include: (1) an irrevocable appointment of the commissioner to
receive service of any lawful process as required by section 82A.22,
subdivision 1; (2) the name of the campground, the membership
camping operator's name and the address of its principal place of
business, the form, date of organization, and jurisdiction of its
organization; and the name and address of each of its offices in this
state; (3) a copy of the membership camping operator's articles
of incorporation, partnership agreement, or joint venture agreement
as contemplated or currently in effect; (4) the name, address,
and principal occupation for the past five years of the membership
camping operator and of each controlling person of the membership
camping operator, and the extent and nature of each such person's
interest in the membership camping operator as of a specified date
within 30 days prior to the filing of the application; (5) a
statement indicating whether or not the membership camping operator,
or any of the persons identified in clause (4), within the past ten
years has been: (i) convicted of a felony; or (ii) enjoined
or received any adverse administrative order relating to the sale of
securities, land, or campgrounds or based on violations of any
consumer protection statutes. If any of the above has occurred, the
name of the person involved, the jurisdiction, offense, and date of
the offense shall be listed; (6) a legal description of each
campground owned or operated in this state by the membership camping
operator which is represented to be available for use by purchasers,
and a map or maps showing the location of all campgrounds, wherever
located, which are owned or operated by the membership camping
operator and represented to be available for use by purchasers, and a
statement identifying the existing amenities at each such campground
and the planned amenities represented as to be available for use by
purchasers in the future at each such campground; (7) the states
or jurisdictions in which an application for registration or similar
document has been filed by the membership camping operator pursuant
to any statute similar to this chapter regulating membership camping
contracts and any adverse order, judgment, or decree entered against
the operator in connection with membership camping contracts by any
regulatory authority in any jurisdiction or by any court; (8) a
statement of the condition of the title to the campground owned or
operated in this state by the membership camping operator and
represented to be available for use by purchasers, including all
encumbrances, deed restrictions, and covenants applicable thereto
with data as to recording, as of a specified date within 30 days
prior to the date of application, by a title opinion of a licensed
attorney or by a title insurance policy, naming the operator or
lender as beneficiaries and issued by an insurance company authorized
to do business in this state, or by any evidence of title acceptable
to the commissioner; (9) copies of the instruments by which the
membership camping operator's interest in the campgrounds in this
state was acquired; (10) copies of all recorded or unrecorded
instruments, known to the membership campground operator, that
evidence blanket encumbrances that materially adversely affect the
campgrounds in this state; (11) if there is a blanket encumbrance
which materially adversely affects the campgrounds located in this
state, a legal description of the encumbrance, and a description of
the steps taken to protect purchasers, in accordance with section 82A.14,
clause (1), in case of failure to discharge the lien or encumbrance;(12) evidence showing compliance with the zoning and other
applicable environmental or land use laws, ordinances, and rules
affecting the use of the campgrounds located in this state; (13)
a statement of the existing and planned provisions for the following
with respect to campgrounds located in this state: (i)
purchasers' access to the campgrounds; (ii) the availability of
sewage disposal facilities and other public utilities, including but
not limited to water, electricity, gas, and telephone facilities in
the campgrounds; (iii) the proximity of community fire and police
protection; (iv) a statement of the amenities which will be
represented to purchasers as guaranteed to be constructed or
installed, whether the operator will be responsible for their cost,
installation, and maintenance, and an estimated cost of and schedule
for completion of the same; provided that the estimated completion
dates need not be more precise than the year in which completion is
estimated to occur, and may be extended for the period of any delays
caused by or deferred due to the occurrence of events such as acts of
God, strikes, and other causes outside the reasonable control of the
membership camping operator; and assurance that such amenities will
be completed by filing a bond or irrevocable letter of credit,
depositing funds in an escrow account, or such other provision as the
commissioner may by order allow. The amount of the bond or escrow
account shall be reduced monthly in proportion to the amount paid for
completion of the amenities during such period. The bond, letter of
credit, or escrow account shall be issued or held by a bank or
insurance or surety company authorized to do business in this state;(v) a statement of the amenities to be represented to purchasers
as planned for construction and installation, but not guaranteed,
whether the operator will be responsible for their costs,
installation, and maintenance, and an estimated cost of and schedule
for completion of the same; provided that the estimated completion
dates need not be more precise than the year in which completion is
estimated to occur and may be extended for the period of any delays
caused by or deferred due to the occurrence of events such as acts of
God, strikes, and other causes outside the reasonable control of the
membership camping operator; (14) the proposed disclosure
statement as required by section 82A.05,
subdivision 1, and the proposed separate disclosure, if applicable,
as required by section 82A.05,
subdivision 6; (15) a financial statement of the membership
camping operator as of the end of the membership camping operator's
most recent fiscal year, prepared by an independent public accountant
and certified by the camping operator; and, if the fiscal year end of
the membership camping operator is in excess of 180 days prior to the
date of filing the application, a financial statement, which may be
unaudited, as of a date within 180 days of the date of application;(16) a statement of the applicable material permits, other than
building permits, not yet obtained but required to be obtained from
various federal, state, and local agencies to operate the campground
in this state, stating which have been applied for. If any permit
has been refused, the reasons for the refusal and the effect the
refusal will have on subsequent development of the campgrounds must
be disclosed; (17) a copy of each type of membership camping
contract to be sold in this state, the purchase price of each type
and, if the price varies, the reason for the variance; (18) the
number of membership camping contracts proposed to be sold at each
campground located in this state and a statement describing the
method used to determine the number; (19) rules of general
applicability governing use and occupancy of the campgrounds; but not
including any rules adopted in response to unique local or immediate
needs; (20) copies of applications for and contracts with any
reciprocal program entity in which the membership camping operator is
to participate and represents as available for use by purchasers;
(21) information concerning purchase or lease costs, rules, forms,
and any fees, other than the initial membership fee and annual dues,
which are required for purchaser usage of in-park trailers,
recreational vehicles, tents, or other overnight accommodations,
provided by or through the membership camping operator, for
purchasers as an alternative to using the purchaser's own mobile
accommodations; and (22) any additional information the
commissioner reasonably deems appropriate to administer the
provisions of this chapter. Subd. 3. Signing of
application. The application shall be signed by the membership
camping operator, duly authorized signatory, or any person holding a
power of attorney for this purpose from the membership camping
operator. If the application is signed pursuant to a power of
attorney, a copy of the power of attorney shall be included with the
application. Subd. 4. Effective date. The registration
is effective on the date the commissioner declares by order.
Subd. 5. Withdrawal of application. If no activity occurs
with respect to an application for a period of 120 days, the
commissioner may by order declare the application withdrawn. No part
of the filing fee will be returned by the commissioner if a
registration application is withdrawn according to this subdivision.
82A.05 Disclosure statement. Subdivision 1.
Delivery. A disclosure statement shall be delivered to each
person to whom an offer is made before or concurrently with: (1)
the first written offer other than offer by means of an
advertisement; or (2) any payment pursuant to a sale, whichever
occurs first. Each person to whom an offer is made must be
afforded a reasonable opportunity to examine the disclosure statement
and must be permitted to retain the statement. The seller shall
obtain a receipt, signed by the person, acknowledging that the person
has received a copy of the disclosure statement prior to the
execution by the purchaser of any membership camping contract. All
receipts shall be kept in files which are in the possession of the
membership camping operator or broker subject to inspection by the
commissioner, for a period of three years from the date of the
receipt. Subd. 2. Contents. A disclosure statement
shall include the following information: (1) the name, principal
address, and telephone number of the membership camping operator and
of its offices in this state; (2) a brief description of the
membership camping operator's experience in the membership camping
business, including the number of years the membership camping
operator has been in the membership camping business; (3) a brief
description of the campgrounds owned or operated by the membership
camping operator and represented as available for use by purchasers,
including identification of the amenities then available for use by
purchasers, whether amenities will be available to nonpurchasers and,
if so, the price to nonpurchasers therefor; (4) a statement of
whether or not the operator has obtained a bond, deposited funds in
an escrow account, obtained an irrevocable letter of credit, or
provided any other assurance securing the cost of the amenities which
are represented as planned to be constructed or installed in the
future for use by purchasers and, if so, the identity of the
amenities and the year in which completion is estimated to occur;
(5) a description of the nature of the purchaser's title to, interest
in, or right or license to use the campgrounds and amenities; (6)
a description of the membership camping operator's ownership of, or
other right to use, the campground and amenities represented to be
available for use by purchasers, together with a brief description of
any material blanket or other material encumbrance on the campground,
and the material provisions of any agreements which materially
restrict a purchaser's use of the property, and a statement of the
consequences to purchasers in the event of any conveyances of the
campgrounds or foreclosure or other adverse action which can be taken
with respect to the encumbrances; (7) a statement or summary of
what required material discretionary land use permits, the issuance
of which is in the discretion of the issuing governmental authority,
have not been obtained for each campground located in this state, and
a description of the conditions that must be met to obtain the
permits that have not yet been obtained; (8) a summary and copy
of the articles, bylaws, rules, restrictions, or covenants regulating
the purchaser's use of each campground and amenities on each
campground in this state, including a statement of whether and how
the articles, bylaws, rules, restrictions, or covenants may be
changed; provided that the foregoing need not include any rules
adopted in response to unique local or immediate needs if the rules
are posted at the campground; (9) a description of all payments
required of a purchaser under a membership camping contract,
including initial fees and any further fees, charges or assessments,
together with any provisions for changing the payments; (10) a
description of any restraints on the transfer of membership camping
contracts; (11) a statement of the assistance, if any, that the
membership camping operator will provide to the purchaser in the
resale of membership camping contracts; (12) a description of the
policies of the membership camping operator relating to the
availability of camping sites and whether reservations are required;(13) a description of the membership camping operator's right to
change or withdraw from use all or a material portion of the
campgrounds or amenities and the extent to which the operator is
obligated to replace campgrounds or amenities withdrawn; (14) a
description of any grounds for forfeiture of a membership camping
contract; (15) a statement of the person's right to cancel the
membership camping contract as provided in section 82A.11;(16) a statement describing all material terms and conditions of
any reciprocal program represented to be available to purchasers,
including whether the purchaser's participation in the reciprocal
program is dependent upon the continued participation of the
membership camping operator in the reciprocal program and whether the
membership camping operator reserves the right to terminate the
participation; and (17) such additional information as may be
reasonably required by the commissioner to assure full and fair
disclosure of all material facts to prospective purchasers.
Subd. 3. Use. The disclosure statement shall not be used for
any promotional purpose before registration of the membership camping
contracts and after registration, when required to be delivered
pursuant to subdivision 1, it shall be used only in its entirety. A
person may not advertise or represent that the commissioner has
approved or recommended the membership camping contracts or sale
thereof. A portion of the disclosure statement may not be
underscored, italicized, or printed in larger or heavier or different
color type than the remainder of the statement if the effect is to
render the statement misleading or deceptive. Subd. 4.
Contract as disclosure statement. A membership camping contract
which contains all of the information required by subdivision 2 shall
be deemed to be a disclosure statement within the meaning of this
section. Delivery of such a membership camping contract shall be
sufficient compliance with the requirements imposed by this section
for delivery of a disclosure statement. Subd. 5. Other
law. Any disclosure statement which complies with the
requirements of any federal law or the laws of any other state
requiring substantially the same disclosure of information as is
required by this section, may by rule or order of the commissioner be
deemed to be in full or partial compliance with this section.
Subd. 6. Separate disclosure. If the membership camping
operator or that person's salespeople represents to a prospective
purchaser that the operator plans to construct or install any
amenities in the future, but the operator has not guaranteed to do so
and has not provided assurances that the amenities will be installed
pursuant to section 82A.04,
subdivision 2, clause (13)(iv), the operator shall furnish a separate
disclosure to the prospective purchaser. The separate disclosure
shall be in 10-point bold type and shall state: NOTICE: PURCHASE THIS
MEMBERSHIP CAMPING CONTRACT ONLY ON THE BASIS OF EXISTING AMENITIES.
CONSTRUCTION OF PLANNED AMENITIES IS NOT GUARANTEED. CONSTRUCTION
MAY BE DEFERRED, REVISED, OR CANCELED FOR A VARIETY OF REASONS. THE
PLANNED AMENITIES FOR THIS CAMPGROUND ARE (Insert list of amenities,
including estimated year of completion of each). IF THE SALESPERSON
DESCRIBES A SIGNIFICANT AMENITY WHICH IS NOT ON THIS LIST, TELEPHONE
COLLECT OR TOLL FREE TO (Insert headquarters telephone number) TO
VERIFY THE OPERATOR'S PLAN FOR SUCH A FACILITY. The separate
disclosure shall be delivered to each person to whom an offer is made
before or concurrently with: (1) the first written offer other
than offer by means of an advertisement; or (2) any payment
pursuant to a sale, whichever is first. The seller shall obtain
a receipt, signed by the person, acknowledging that the person has
received a copy of the separate disclosure required herein prior to
the execution by the purchaser of any membership camping contract.
All receipts shall be kept in files which are in the possession of
the membership camping operator or broker subject to inspection by
the commissioner for a period of three years from the date of the
receipt. 82A.06 Exemptions. Subdivision 1. Total transactional
exemptions. The following transactions are exempt from the
provisions of this chapter: (1) an offer, sale, or transfer by
any one person of not more than one membership camping contract in
any 12-month period; unless the offer, sale, or transfer is effected
by or through a broker; (2) an offer or sale by a government or
governmental agency; (3) a bona fide pledge of a membership
camping contract; and (4) any transaction which the commissioner
by rule or order exempts as not being within the purposes of this
chapter and the registration of which the commissioner finds is not
necessary or appropriate in the public interest or for the protection
of purchasers. Subd. 2. Partial transactional
exemptions. The following transactions are exempt from the
provisions of sections 82A.03;
82A.04;
82A.05;
82A.07;
82A.08;
82A.11,
subdivisions 2 and 4; 82A.14;
82A.16;
and 82A.17:
any sale which is made to a person who is not then physically present
in this state, and any offer which invites an offeree to attend a
sales presentation in another state if: (1) the offeror has given
at least ten days prior written notice to the commissioner of its
intention to offer or sell membership camping contracts to residents
of this state pursuant to this exemption and paid a fee of $50;
(2) the offeror has demonstrated that the sales presentation will be
made, and the sale will be consummated, in a state which specifically
regulates the offer and sale of membership camping contracts; (3)
the offeror has demonstrated that it will deliver a disclosure
statement to offerees who are residents of this state which contains
substantially the same or greater disclosure as is required by
section 82A.05;
and (4) the offeror has filed a consent to service of process
pursuant to section 82A.22.
82A.07 Amendment of registration. A person with a
registration in effect, within 30 days after the person becomes aware
of, or should have become aware of, the occurrence of any material
change in the information on file with the commissioner, including
the disclosure statement, which change could adversely affect
purchasers, shall notify the commissioner in writing of the change by
an application to amend the registration accompanied by a filing fee
of $25. If the amendment is approved by the commissioner, it shall
become effective upon the issuance by the commissioner of an order
approving the amendment. The amendment shall automatically become
effective upon the expiration of 15 business days following filing
with the commissioner unless the commissioner has prior thereto
issued an order denying or approving the amendment. 82A.08 Annual report. Subdivision 1. Requirement.
During the period a registration is effective, the membership camping
operator shall file an annual report in a format the commissioner may
reasonably prescribe. Every annual report shall be due by the 120th
day following the end of the operator's fiscal year, unless extended
in writing by the commissioner for good cause. The annual report
shall: (1) specify the aggregate number of membership camping
contracts sold in this state pursuant to the registration or any
amendment thereof; (2) specify the number of membership camping
contracts and aggregate dollar amount of all sales of membership
camping contracts in this state by the membership camping operator
since the date the registration became effective, or since the last
annual report was filed with the commissioner, whatever date is
later; (3) specify any exemption from registration claimed for
any sale described in clause (2); (4) list any changes in the
information required to be filed under section 82A.04,
subdivision 2, clause (4); (5) include an audited or unaudited
financial statement consisting of a balance sheet for the membership
camping operator's last fiscal year end and an income statement for
the 12 months next preceding the date of the balance sheet, both
prepared by an independent certified public accountant; and (6)
provide such other information as the commissioner may by rule or
order reasonably require to administer the provisions of this
chapter, including but not limited to, audited financial statements.Subd. 2. Fee. Every annual report filed pursuant to this
section shall be accompanied by a fee of $500. Subd. 3.
Cancellation. Failure to file the annual report shall be cause
for cancellation of the registration. Cancellation shall occur ten
days after mailing of the notice of cancellation to the operator or
registrant. If canceled, the registration may be reinstated
immediately following the filing of the report and payment of the
appropriate fees. 82A.09 Advertising. Subdivision 1. Repealed, 1988 c 493 s 7Subd. 2. Restrictions. No person shall publish or cause
to be published in this state any advertisement concerning any
membership camping contract which is required to be registered
pursuant to this chapter, or which is exempt from registration under
section 82A.06,
subdivision 2, after the commissioner has found that the
advertisement contains any statement that is false or misleading, or
omits to make any statement necessary in order to make the statements
made, in light of the circumstances under which they were made, not
misleading, and has so notified the person by written order. The
order may be issued without prior notice or hearing. Up to 30 days
after the issuance of the order, the person desiring to use the
advertisement may in writing request a hearing on the order. Upon
receipt of a written request, the matter shall be set for hearing to
commence within 15 days after the receipt unless the person making
the request consents to a later date. After the hearing, which shall
be conducted in accordance with the provisions of chapter 14, the
commissioner shall, by written order, either affirm, modify, or
vacate the order. Subd. 3. Specific prohibitions. The
following devices or sales presentations, and the use of those
devices or presentations, are deceptive or misleading practices:
(1) An advertisement that offers travel, accommodations, gifts,
meals, or entertainment published to induce prospective purchasers to
visit a campground or attend a sales presentation and that: (i)
does not prominently set forth all eligibility requirements; (ii)
describes offers of travel, accommodations, gifts, meals, or
entertainment as "prizes," "awards," or by words of similar import or
describes prospective purchasers as "winners" or by words of similar
import; (iii) contains the words "free" or "no obligation" or
similar terms unless the offer is unequivocally without conditions;(iv) states or implies that prospective purchasers have been
specially selected; (v) does not specifically state that gifts
will be provided at the time the prospective purchaser visits the
campground or attends the sales presentation; (vi) does not
disclose on its face page the retail market value of the travel,
accommodations, gifts, meals, or entertainment provided. For
purposes of this subclause, "retail market value" means: the retail
price the item sells for in Minnesota; or if the item is not sold in
Minnesota, the retail price the item sells for in states contiguous
to Minnesota; or if the item is not sold in Minnesota or in a state
contiguous to this state, the retail price the item sells for
anywhere in the United States; (vii) does not specifically and
prominently disclose that the purpose of the offer of travel,
accommodations, gifts, meals, or entertainment is to induce
prospective purchasers to visit a campground or attend a sales
presentation where they will be encouraged to purchase a membership
camping contract; (viii) does not completely disclose rules and
procedures if travel, accommodations, gifts, meals, or entertainment
are offered through a "sweepstakes," "giveaway," or similar contest;(ix) does not specifically disclose the odds, as a fraction,
using a common denominator, of a prospective purchaser's receiving
each gift if the gift is offered through a "sweepstakes," "giveaway,"
or similar contest; or (x) does not clearly and prominently state
that gifts may be given to persons outside the state if the
advertisement is part of a national advertising campaign. (2) An
advertisement that does not prominently disclose the name, address,
and phone number of the membership camping operator on whose behalf
the advertisement is distributed. (3) An advertisement prepared
on the stationery of a person other than the membership camping
operator that creates a likelihood of confusion, misunderstanding, or
deception. (4) Site and conceptual plans which do not disclose
which facilities are and are not currently in existence. (5)
Pictorial advertising material for off-site distribution, other than
site and conceptual plans which are labeled as such, which depicts
more than the actual on-site condition of the campgrounds or other
areas that are material to the offer or sale of membership camping
contracts. 82A.10 Inspection of records. All records of a membership
camping operator and broker and their agents pertaining to the
advertising or sale of membership camping contracts in this state
shall be maintained by the membership camping operator or broker at
that person's principal place of business and shall there be subject
to inspection by the commissioner during normal business hours. The
commissioner shall be promptly notified of any change of address
affecting the location of the records of the membership camping
operator or broker and that person's agents. 82A.11 Sales contract; rescission. Subdivision 1.
Writing. Every membership camping contract shall be in writing.Subd. 2. Generally. Any membership camping contract not
exempt under section 82A.06,
and entered into after January 1, 1986, is voidable at the discretion
of the purchaser, for a period of three years from the date of the
sale, if the contract was not registered under this chapter at the
time of the sale, unless subsequently thereto the contract is
registered under this chapter and in connection therewith, the
purchaser has received a written offer to repurchase the contract for
cash payable on closing of the repurchase, together with interest
thereon from the date of the purchase at the legal rate or at the
rate charged by the membership camping operator or lender to the
purchaser, whichever is higher, and the purchaser has failed to
accept the offer in writing within 30 days of its receipt. No offer
of repurchase shall be effective unless a duplicate copy thereof has
been filed with the commissioner at least 20 days prior to its
delivery to the offeree and the commissioner has not objected to the
offer within that time. The offer to repurchase shall be in the form
and contain the information the commissioner by rule or order
prescribes. If the purchaser no longer owns the membership camping
contract, the purchaser shall be entitled to maintain an action at
law, and the damages shall be the consideration paid for the
membership camping contract, together with interest thereon as
specified above from the date of acquisition to the date of
disposition, plus costs and reasonable attorney's fees, less the
value received by the purchaser upon disposition of the membership
camping contract. Subd. 3. Right of rescission. A
purchaser has an unconditional right to rescind any membership
camping contract, or revoke any offer, at any time prior to or within
five business days after the date the purchaser actually receives a
legible copy of the binding contract. Predating of a document does
not affect the time in which the right to rescind may be exercised.Subd. 4. Labeling of contract. Each membership camping
contract shall be prominently labeled and captioned that it is a
document taken in connection with a sale of membership camping
contracts under this chapter. Subd. 5. Notice. Each
membership camping contract shall contain the following notice which
shall be in at least 10-point type, stating: "You are entitled to
rescind this agreement for any reason within five business days from
the day you actually receive a legible copy of this document signed
by all parties. The rescission must be in writing and sent by
certified mail to the membership camping operator along with this
agreement and any membership card issued to you or your family at the
address stated in this document. Upon rescission, you will receive a
refund of all money paid within 30 days after the membership camping
operator receives notice of your rescission." The operator or
broker may impose a fee of not more than $25 for processing of a
rescission. If the operator or broker does so, it shall add the
following clause to the notice: "provided that the membership camping
operator (or broker, if the seller is a broker) may retain a
processing fee of $......," and insert the amount of the charge to be
imposed. In the event the membership camping contract is sold by
a broker or the broker's salesperson, the above notice shall be
modified to substitute the name of the broker for "membership camping
operator." Subd. 6. Effective date. Rescission occurs
when the purchaser gives written notice of rescission, whether or not
the membership camping contract or any membership card accompanies
the notice, to the membership camping operator or the broker at the
address stated in the contract. Notice of rescission, if given by
mail, is effective when the purchaser deposits a certified letter
properly addressed and postage prepaid in a mailbox. A notice of
rescission given by the purchaser need not take a particular form and
is sufficient if it indicates by any form of written expression the
intention of the purchaser not to be bound by the membership camping
contract. Subd. 7. Nonwaiver. No act of a purchaser
shall be effective to waive the right to rescind as provided in this
section. Subd. 8. Cancellation by heir. A membership
camping contract that may be transferred by descent or devise must
provide that the heir or devisee may cancel the contract.
Cancellation of the contract relieves the heir or devisee of any
further obligations under the contract. 82A.111 Escrow requirement. Subdivision 1.
Generally. All funds received by a broker, membership camping
operator, or salesperson in connection with the offer or sale of a
membership camping contract must be deposited immediately upon
receipt in an escrow account maintained by the broker or membership
camping operator for that purpose in a bank or an industrial loan and
thrift company with deposit liabilities designated by the broker or
membership camping operator. The funds must remain in the escrow
account, for the benefit of the purchaser, until the expiration of
the purchaser's right of rescission as set forth in section 82A.11,
subdivision 3. The depository bank must be a Minnesota bank, trust
company, or savings association, or a foreign bank which authorizes
the commissioner to examine its records of these deposits upon demand
by the commissioner. The industrial loan and thrift company must be
organized under chapter 53. Subd. 2. Membership camping
dues. A membership camping operator or the operator's salesperson
shall deposit all membership dues received in an escrow account in a
Minnesota bank, trust company, or savings association, a foreign bank
which authorizes the commissioner to examine its records of these
deposits upon demand by the commissioner, or an industrial loan and
thrift company organized under chapter 53 with deposit liabilities.
In any calendar year, total dues to be deposited in the escrow may
not exceed an amount approved by the commissioner as reasonably
needed for that calendar year's maintenance budget submitted by the
operator. The operator may draw funds from the escrow as needed
provided that funds are expended for purposes identified by the
budget. Subd. 3. Commingling funds. A broker,
membership camping operator, or salesperson shall deposit only funds
specified in subdivisions 1 and 2 in an escrow account and shall not
commingle personal funds or other funds in an escrow account; except
that a broker, membership camping operator, or salesperson may
deposit and maintain a sum not to exceed $100 in an escrow account
from personal funds, which sum must be specifically identified and
used to pay service charges relating to the escrow account.
Subd. 4. Trust account records. Each broker and membership
camping operator shall maintain and retain records of all escrowed
funds and escrow accounts. Subd. 5. Notice of trust account
status. The names of the banks and industrial loan and thrift
companies and the escrow account numbers used by a broker must be
provided to the commissioner at the time of application for the
broker's license, and those used by the membership camping operator
must be provided to the commissioner at the time of application for
registration of the membership camping contract. Every broker or
membership camping operator shall immediately report to the
commissioner any change of escrow account status including changes in
banks and industrial loan and thrift companies, account numbers, or
additional accounts in the same or other banks and industrial loan
and thrift companies. A broker or membership camping operator shall
not close an existing escrow account without giving ten days' written
notice to the commissioner. 82A.12 Enforcement; powers of commissioner. Subdivision 1.Generally. The commissioner may issue a cease and desist
order and may issue an order denying, suspending, or revoking any
registration, amendment renewal, or exemption if the commissioner
finds any of the following: (1) that the membership camping
operator or registrant or any controlling person thereof has
materially or intentionally violated or failed to comply with any
provision of this chapter or any rule or order of the commissioner;(2) that the offer or sale of the membership camping contract has
constituted or would constitute a material misrepresentation to
purchasers, or has operated or would operate as a fraud or deceit
upon purchasers; (3) that the membership camping operator or
registrant or any controlling person, agent, or employee thereof, is
engaging or about to engage in false, fraudulent, or deceptive
practices in connection with the offer and sale of a membership
camping contract; (4) that the membership camping operator or
registrant or any controlling person or employee thereof, has engaged
in any fraudulent or deceptive practice, whether or not in connection
with the offer and sale of membership camping contracts, and the
involvement of the person in the business of the membership camping
operator or registrant creates a substantial risk of harm to
prospective purchasers; (5) that the financial condition of the
membership camping operator materially adversely affects, or would
materially adversely affect, the ability of the membership camping
operator such that there is a reasonable likelihood that the
membership camping operator will not be able to substantially fulfill
its obligations under the membership camping contract, and no other
financial security or assurance is provided by the membership camping
operator to fulfill the obligations; (6) that the membership
camping operator's or registrant's enterprise or method of business
with respect to the operation of a campground in this state includes
or would include activities which are illegal or not in conformance
with applicable statutes, ordinances, or regulations of any
governmental entity; (7) that the membership camping operator or
registrant or any controlling person thereof has made material
misrepresentations or concealed material facts in an application for
registration; (8) that any fee required by this chapter to be
paid by the operator or registrant has not been paid; and (9)
that the membership camping operator or controlling person, agent, or
employee thereof, has failed faithfully to perform any stipulation or
agreement made with the commissioner as an inducement to grant any
registration, to reinstate any registration, or to permit any
disclosure statement; provided, however, that this clause shall not
be deemed to require any stipulations or agreements. Subd. 2.Hearing on order. If the commissioner finds that there are
reasonable grounds to believe that, unless an order is issued
promptly, there is an immediate and significant risk of harm to
purchasers, the commissioner may issue an order under subdivision 1
without a prior hearing. Upon the entry of such an order, the
commissioner shall promptly serve a copy of the order upon the
subject membership camping operator or other person. The order shall
state the reasons for its issuance and shall either order a hearing,
which shall be set for no later than 20 days from the date of the
order, or specify that upon the written request of the membership
camping operator, or other person, the matter will be set for hearing
within 15 days after receipt of the request; provided that with the
consent of the membership camping operator, or other person, a
hearing may be held subsequent to the expiration of either period
specified herein. If no hearing is requested within 30 days of
service of the order and none is ordered by the commissioner, the
order will remain in effect until it is modified or vacated by the
commissioner. If a hearing is requested or ordered, the
commissioner, after notice and hearing in accordance with the
provisions of chapter 14, shall affirm, modify, or vacate the order.Subd. 3. Order to show cause. If there are not grounds
to employ the procedure prescribed in subdivision 2, the commissioner
may issue an order to show cause setting a hearing on a date not
later than ten days after its entry and requiring a membership
camping operator or other person to appear and show cause why a cease
and desist order should not be issued, or why an order denying,
suspending, or revoking a registration, amendment, or exemption
should not be issued. The order to show cause shall give reasonable
notice of the time and place for hearing thereon, which shall be
within ten days after entry of the order, unless the respondent
agrees otherwise, and shall state the reasons for the entry of the
order. The hearing shall be conducted in accordance with the
provisions of chapter 14. After the hearing, the commissioner shall
enter an order making such disposition of the matter as the facts
require. Subd. 4. Burden of proof. In any proceeding
under this chapter, the burden of proving an exemption or an
exception from a definition is upon the person claiming it.
Subd. 5. Investigations. The commissioner may make necessary
public or private investigations within or outside of this state to
determine whether any person has violated or is about to violate this
chapter or any rule or order hereunder or to aid in the enforcement
of this chapter or in the prescribing of rules and forms hereunder.
For purposes of any investigation or proceeding under this chapter,
the commissioner or any person designated by the commissioner may
require or permit any person to file a statement in writing, under
oath or otherwise as the commissioner determines, setting forth the
facts and circumstances concerning the matter to be investigated;
administer oaths or affirmations, and upon the commissioner's own
motion or upon request of any party may subpoena witnesses, compel
their attendance, take evidence, and require the production of any
matter which is relevant to the investigation, including the
existence, description, nature, custody, condition, and location of
any books, documents, or other tangible things and the identity and
location of persons having knowledge of relevant facts, or any other
matter reasonably calculated to lead to the discovery of material
evidence. Upon failure to obey a subpoena or to answer questions
propounded by the investigating officer and upon reasonable notice to
all persons affected thereby, the commissioner may apply to the
district court for an order to compel compliance. 82A.13 Prohibited practices. Subdivision 1. Untrue
statements filed in documents. No person shall make or cause to
be made any untrue statement of a material fact in an application or
other document filed with the commissioner under this chapter, or
omit to state in the application or other document any material fact
which is required to be stated therein, or fail to notify the
commissioner of any material change as required by sections 82A.07
and 82A.16,
subdivision 3. Subd. 2. Fraud. No person shall, in
connection with the offer or sale of any membership camping contract,
directly or indirectly: (1) employ any device, scheme, or
artifice to defraud; (2) make any untrue statement of a material
fact, or omit to state material facts necessary in order to make the
statements made, in the light of the circumstances under which they
are made, not misleading; (3) engage in any act, practice, or
course of business which operates or would operate as a fraud or
deceit upon any person; or (4) accept an advance payment for
services rendered by an agent in connection with the resale of a
membership camping contract. Subd. 3.
Misrepresentations. No person may represent or cause to be
represented to any prospective purchaser of a membership camping
contract that the filing of any document under this chapter or the
registration or exemption from registration of a membership camping
contract constitutes a finding by the commissioner that any document
filed under this chapter is true, complete, and not misleading, or
that the commissioner has passed in any way upon the merits of any
membership camping contract, and no person may represent that a
membership camping contract is registered or exempted from
registration when in fact, such is not the case. 82A.14 Unfair practices. No membership camping operator
shall: (1) sell or offer to sell any membership camping contract
with respect to a campground located in this state which is subject
to a blanket encumbrance unless; (i) each person holding an
interest in a blanket encumbrance shall have executed and delivered a
nondisturbance agreement and recorded the agreement in the real
estate records of the county in which the campground is located; or(ii) a bond or irrevocable letter of credit has been issued, or
cash or a certified check in an amount sufficient to cover payment of
all amounts secured by the blanket encumbrance has been deposited, in
the name of the state for the benefit and protection of purchasers of
membership camping contracts and subject to terms as approved by the
commissioner. Any interest accruing on amounts held in the account
shall be payable, as and when earned, to the membership camping
operator. Any bond shall be executed by an insurance company
authorized to do business in this state, which has sufficient net
worth to satisfy the indebtedness and which has given consent to be
sued in this state. Any irrevocable letter of credit shall be issued
by a bank or savings association which has sufficient net worth to
satisfy the indebtedness and which has given its consent to be sued
in this state. The bond, cash, certified check, or irrevocable
letter of credit shall be in an amount which is not less than 110
percent of the remaining principal balance of every indebtedness or
obligation secured by a blanket encumbrance affecting the campground.
The bond or agreement accompanying the cash, certified check, or
irrevocable bank letter of credit shall provide for the payment of
all amounts secured by the blanket encumbrance, including costs,
expenses, and legal fees of the lien holder, if for any reason the
blanket encumbrance is enforced. The bond, cash, certified check, or
letter of credit may be reduced periodically in proportion to the
reductions in the amount secured by the blanket encumbrance; or
(iii) the lender providing the major hypothecation loan to the
membership camping operator (the "hypothecation lender"), and having
a lien on or security interest in the membership camping operator's
interest in the campground, shall have executed and delivered a
nondisturbance agreement and recorded the agreement in the real
estate records of the county in which the campground is located in
this state. Each person holding an interest in a blanket encumbrance
superior to the interest held by the hypothecation lender shall have
executed, delivered, and recorded an instrument stating that the
person shall give the hypothecation lender notice of, and at least 30
days' opportunity to cure, any default under the blanket encumbrance
which entitles the person to foreclose upon the campground. The
instrument shall state that the notice and opportunity to cure shall
be given before the person commences any foreclosure action affecting
the campground and in accordance with the instrument. The
hypothecation lender shall have guaranteed that it will cure or
arrange for the cure of the default. Any holder of a blanket
encumbrance inferior to the hypothecation lender who acquires the
campground in foreclosure shall take the campground subject to the
hypothecation lender's nondisturbance agreement. For purposes of
this provision, a "hypothecation lender" is any lender extending a
loan or line of credit to a membership camping operator secured by
all or substantially all of the contract receivables arising from the
membership camping operator's sale of membership camping contracts in
this state. For purposes of this provision, "lender" means an
insurance company or a federally or state chartered bank, savings
association, any other lending institution, the deposits of which are
guaranteed or insured, by a federal agency, or any other person which
has sufficient net worth to pay the obligations pursuant to this
section if there are no reasonable grounds to believe that the lender
will not be able to pay these obligations in the future; or (iv)
the operator can provide an alternative plan acceptable to the
commissioner; (2) sell any campground which is located in this
state and available for use by purchasers, unless: (i) the
membership camping operator sells the campground to a person who
takes the campground subject to all rights and interests of
purchasers, and contractually agrees not to compromise the rights and
interests of purchasers in regard to future conveyances of, or
encumbrances placed on the campground; (ii) the membership
camping operator immediately substitutes for the use of purchasers
another campground which is in the same general area and is at least
as desirable for the purpose of camping and outdoor recreation as the
previous campground. For purposes of this provision, "same general
area" means a location within a 50-mile radius of the previous
campground; or (iii) the membership camping operator immediately
substitutes for the use of purchasers another campground and the
substitution is approved by two-thirds of all existing purchasers;(3) substitute any campground located in this state and available
for use by purchasers with a different campground, unless the
substituted campground is in the same general area and is at least as
desirable for the purpose of camping and outdoor recreation as the
previous campground. For purposes of this provision, "same general
area" means a location within a 50-mile radius of the previous
campground; (4) sell membership camping contracts with respect to
any campground located in this state that is not owned by the
membership camping operator or leased by the membership camping
operator for a lease term at least equal to the term of the
membership camping contract with respect to the campground; (5)
fail to disclose the circumstances, if any, under which any
reciprocal program that has been offered as an inducement to
purchasers may be terminated; (6) materially modify any
campground rules or regulations or modify purchasers' rights to or
the scope and nature of an amenity in a manner which significantly
degrades or diminishes the material rights of any purchaser without
prior notice to purchasers resident in this state; or materially
adversely modify any material campground rules or regulations or
materially adversely modify purchaser's rights to or the scope and
nature of an amenity in a manner which the purchaser proves: (i)
significantly degrades or diminishes any material rights of that
purchaser; and (ii) has no compensating benefit to any other
purchaser or groups of purchasers; (7) terminate or provide for
termination of a membership camping contract, except for good cause.
"Good cause" shall mean failure of the purchaser to substantially or
consistently comply with reasonable requirements imposed by the
membership camping contract and campground rules and regulations;
(8) terminate a membership camping contract without first giving
written notice setting forth all reasons for the termination to the
purchaser at least 30 days prior to the termination becoming
effective; (9) increase a purchaser's membership dues after the
sale of a contract in such a manner as to result in an increase
thereof greater than whichever of the following increases is higher:(i) the actual increase in costs of services or improvements for
which the membership dues are imposed; or (ii) the increase in
the United States city average Consumer Price Index for all urban
consumers issued by the United States Bureau of Labor Statistics or
such other federally prepared Consumer Price Index or Wage Earner
Index as reasonably selected by the operator in its discretion;
(10) require purchaser to certify the absence of any
misrepresentation or other violation of this chapter provided,
however, that a purchaser's acknowledgment of receipt of a copy of
the membership camping contract shall not be deemed to constitute
such a certification; (11) require the purchaser to waive the
right to assert against the membership camping operator or any
assignee any claim or defense the purchaser may have against the
membership camping operator under the membership camping contract; or(12) materially and repeatedly fail to maintain a campground in
this state in the manner contractually agreed upon. 82A.15 Preservation of purchaser's claims and defenses. Any
assignee of a membership camping contract or obligation relating to
membership camping contracts shall be subject to all claims and
defenses of the purchaser against the membership camping operator
arising from the sale, notwithstanding any agreement to the contrary.
An assignee who takes assignment of the membership camping contract
without assumption of any obligations thereunder shall have no
obligation or liability to assume the obligations or responsibilities
of the membership camping operator under the membership camping
contract. The assignee's liability under this section shall not
exceed the amount owing to the assignee at the time the claim or
defense is asserted against the assignee. The rights of the
purchaser under this subdivision can only be asserted as a matter of
defense to or set off against a claim by the assignee. 82A.16 Licensure requirement. Subdivision 1.
Salesperson or broker. A salesperson or broker may not offer or
sell a membership camping contract until duly licensed under this
chapter. Subd. 2. Fee and contents. A salesperson or
broker may apply for a license by filing a fee of $50 and an
application with the commissioner which includes the following
information: (1) the applicant's name, age, residence address,
and, in the case of a salesperson, the name and place of business of
the membership camping operator or broker on whose behalf the
salesperson will be acting; (2) the applicant's date and place of
birth; (3) a statement whether or not the applicant within the
past ten years has been convicted of a misdemeanor or felony
involving theft, fraud, or dishonesty or whether or not the applicant
within the past ten years has been enjoined from, had any civil
penalty assessed for, or been found to have engaged in any violation
of any securities, land sales, camping, or consumer protection
statutes; (4) a statement whether or not the applicant is named
as a defendant in a pending criminal indictment or proceeding
involving fraud, theft, or dishonesty or is a defendant in a pending
lawsuit arising out of alleged violations of securities, land sales,
camping, or consumer protection statutes. A copy of the charge,
complaint, or lawsuit shall be provided to the commissioner; (5)
a statement describing the applicant's employment history for the
past five years and whether or not any termination of employment
during the last five years was occasioned by a theft, fraud, or act
of dishonesty; (6) an affidavit certifying that the applicant is
knowledgeable concerning the provisions of this section and sections
82A.05,
82A.13,
and 82A.14,
and any rules adopted under those sections; (7) a statement
whether or not the applicant has ever been licensed by this state or
its political subdivisions to engage in any other business or
profession; whether any such license has been denied, suspended, or
revoked and, if so, the circumstances of the denial, suspension, or
revocation; (8) such other information as the commissioner may
reasonably deem necessary to administer the provisions of sections 82A.01
to 82A.26,
by rule or order. Subd. 3. Amendments. Each licensee
shall, within 15 days after the occurrence of any material change in
the information contained in the initial application for license,
file with the commissioner an amendment to the application setting
forth the facts of change. The following shall be material changes
requiring amendment: (1) any termination of employment with a
membership camping operator or broker; (2) any new employment
with a different membership camping operator or broker; (3) upon
any occasion when the salesperson or broker is named as a defendant
in any criminal indictment or proceeding involving fraud, theft, or
dishonesty or is a defendant in any pending lawsuit arising out of
alleged violations of this chapter or any securities, land sales, or
consumer protection statutes. A copy of the complaint or lawsuit
shall be provided to the commissioner; and (4) a change of name
or address. Subd. 4. Salespersons. A salesperson must
be licensed to act on behalf of a registered membership camping
operator or licensed broker and may not be licensed to act on behalf
of more than one membership camping operator or broker in this state
during the same period of time. The license of each salesperson
shall be mailed to and remain in the possession of the salesperson
until canceled. Subd. 5. Expiration. Every license
issued pursuant to this chapter shall expire on the February 28 next
following the issuance of the license. Subd. 6.
Renewal. The license of a salesperson and broker shall be renewed
annually by the filing of a form prescribed by the commissioner and
payment of a fee of $25. Subd. 7. Alternative system.
Notwithstanding the provisions of subdivisions 5 and 6, the
commissioner may institute a system by rule pursuant to chapter 14 to
provide three-year licenses from the date of issuance for any license
prescribed by this section. Subd. 8. Responsibility of
operator. Each membership camping operator or broker shall be
responsible for any violations of section 82A.13
or 82A.14
by any and all of its salespersons while acting as its agents in
connection with the offer or sale of membership camping contracts.
Unless the broker is liable for such violations pursuant to section
82A.19,
subdivision 2, the operator's or broker's liability under this
subdivision shall be limited to rescission and refund of the
purchaser's payments for the membership camping contract. 82A.17 Denial; suspension; revocation of licenses.
Subdivision 1. Grounds. The commissioner may by order deny a
license application, suspend or revoke any license, or may censure a
licensee on finding that the order is in the public interest, and
that the applicant or licensee: (1) has filed an application for
a license which is incomplete in any material respect or contains any
statement which, in light of the circumstances under which it is
made, is false or misleading with respect to any material fact;
(2) has engaged in a fraudulent or deceptive practice; (3) is
permanently or temporarily enjoined by any court of competent
jurisdiction from engaging in or continuing any conduct or practice
involving any aspect of the membership camping contract business or
any other statute designed to protect consumers; or (4) has
materially or intentionally violated or failed to comply with any
provision of this chapter or any rule or order under this chapter.Subd. 2. Order to show cause. The commissioner shall
issue an order requiring a licensee or applicant for a license to
show cause why the license should not be revoked or suspended, or the
licensee censured, or the application denied. The order shall be
calculated to give reasonable notice of the time and place for
hearing thereon, and shall state the reasons for the entry of the
order. If the commissioner finds that there are reasonable grounds
to believe that, unless an order is issued promptly, there is an
immediate and significant risk of harm to purchasers, the
commissioner may by order summarily suspend a license pending final
determination of any order to show cause. If a license is suspended
pending final determination of an order to show cause, a hearing on
the merits shall be held within 30 days of the issuance of the order
of suspension. All hearings shall be conducted in accordance with
the provisions of chapter 14. After the hearing, the commissioner
shall enter an order making such disposition of the matter as the
facts require. If the licensee or applicant fails to appear at a
hearing of which that person has been duly notified, the person shall
be deemed in default, and the proceeding may be determined against
that person upon consideration of the order to show cause, the
allegations of which may be deemed to be true. 82A.18 Enforcement; penalties and remedies. Subdivision 1.Civil action. Whenever the commissioner has reasonable cause
to believe that any person has engaged or is about to engage in any
act or practice constituting a violation of any provisions of this
chapter or any rule or order thereunder, the commissioner may, in
addition to all other remedies, institute on behalf of the state of
Minnesota a civil action seeking appropriate relief. In addition to
all other penalties and remedies provided by this chapter, whether
administrative or judicial in nature, the courts of this state shall
have jurisdiction to grant such temporary, interlocutory, or
permanent injunctive relief as is necessary to prevent and restrain
violations of this chapter and may upon a proper showing appoint a
receiver for the property, assets, business, and affairs of a
membership camping operator. Subd. 2. Civil penalty.
Any person who materially or repeatedly violates section 82A.03,
82A.05,
82A.09,
82A.13,
82A.14,
or 82A.16
shall be subject to a fine of not more than $1,000 for each violation
provided, however, that the total recovery arising from the same
failure to comply, but involving different purchasers, shall be
limited to $5,000. A fine authorized by this subdivision may be
imposed in a civil action brought by the attorney general on behalf
of the state of Minnesota, and shall be deposited into the state
treasury. Subd. 3. Penalty for unpaid fees. Any person
who fails to pay the filing fees required by this chapter and
continues to sell membership camping contracts, is liable civilly in
an action brought by the attorney general on behalf of the
commissioner for a penalty in an amount equal to treble the unpaid
fees. 82A.19 Civil liability. Subdivision 1. Generally. A
person who violates any provision of section 82A.05,
82A.13,
or 82A.14
or any rule or order thereunder shall be liable to the purchaser who
may sue for actual damages caused thereby, for rescission, or other
relief as the court may deem appropriate. Subd. 2. Joint
and several liability. Every person who materially aids in the
act or a violation of section 82A.05,
82A.13,
or 82A.14
is also liable jointly and severally with and to the same extent as
the person, directly committing the violation unless the person who
would otherwise be liable hereunder had no knowledge of or reasonable
grounds to know of the existence of the facts by reason of which the
liability is alleged to exist. Subd. 3. Costs and
disbursements. The prevailing party, in any suit authorized under
this section or brought pursuant to section 82A.11,
may recover costs and disbursements plus reasonable attorney's fees,
in addition to any other relief granted. Subd. 4. Remedies
additional. The rights and remedies provided by this chapter
shall be in addition to any and all other rights and remedies that
may exist at law or in equity. Subd. 5. Limitations on
actions. An action shall not be commenced pursuant to this
section later than three years from the date the person enters into
the contract. 82A.20 Rules and opinions. Subdivision 1. Rulemaking
power. The commissioner may adopt rules to carry out the
provisions of this chapter. For the purpose of rules and forms, the
commissioner may classify membership camping contracts, persons, or
matters within the commissioner's jurisdiction, and prescribe
different requirements for different classes insofar as they are
consistent with this chapter. Rules shall be adopted in accordance
with chapter 14, and shall not be inconsistent with the provisions of
this chapter. Subd. 2. Opinions. The commissioner, upon
request and upon payment of a fee of $50, may honor requests for
interpretive opinions relating to this chapter. 82A.21 Scope. The provisions of this chapter concerning
offers and sales of membership camping contracts apply when an offer
or sale is made in this state. For the purpose of this chapter,
an offer or sale is made in this state when a sales presentation is
made in this state. An offer or sale is also made in this state,
whether or not either party is then present in this state, when:
(1) the offer originates from this state and is intended to induce
the offeree to attend a sales presentation in this state; or (2)
the offer is directed by the offeror to this state, received by the
offeree in this state and is intended to induce the offeree to attend
a sales presentation in this or another state. An offer or sale
is not made in this state when a publisher circulates or there is
circulated on the publisher's behalf in this state any bona fide
newspaper or other publication of general, regular, and paid
circulation which is not published in this state, or a radio or
television program originating outside this state is received in this
state. 82A.22 Service of process. Subdivision 1. Consent to
service. Every membership camping operator or broker, on whose
behalf an application for registration or exemption is filed, shall
file with the commissioner, in such form as the commissioner may
prescribe, an irrevocable consent appointing the commissioner and the
commissioner's successors in office to be the membership camping
operator's or broker's attorney to receive service of any lawful
process in any noncriminal suit, action, or proceeding against the
membership camping operator or broker or a successor, executor, or
administrator which arises under this chapter or any rule or order
thereunder after the consent has been filed, with the same force and
validity as if served personally on the membership camping operator
or the operator's successor, executor, or administrator. Service
under this section shall be made in compliance with section 45.028,
subdivision 2. Subd. 2. Appointment of commissioner.
When any person, including any nonresident of this state, engages in
conduct prohibited or made actionable by this chapter, or any rule or
order thereunder, and the person has not filed a consent to service
of process under subdivision 1 and personal jurisdiction over this
person cannot otherwise be obtained in this state, that conduct shall
be considered equivalent to the person's appointment of the
commissioner or the commissioner's successor to be the person's
attorney to receive service of any lawful process in any noncriminal
suit, action, or proceeding against the person which grows out of
that conduct and which is brought under this chapter or any rule or
order thereunder, with the same force and validity as if served on
the person personally. Service under this section shall be made in
compliance with section 45.028,
subdivision 2. Subd. 3. Continuances. When process is
served under this section, the court or the commissioner in a
proceeding before the commissioner shall order such continuance as
may be necessary to afford the defendant or respondent reasonable
opportunity to defend.
82A.23 Waivers void. Any condition, stipulation, or
provision purporting to bind any person acquiring any membership
camping contract to waive compliance with any provision of this
chapter or any rule or order thereunder is void.
82A.24 Administration. Subdivision 1. Generally.
This chapter shall be administered by the commissioner of commerce.Subd. 2. Responsibilities of department. It is unlawful
for the commissioner or any of the commissioner's officers or
employees to use for personal benefit any information which is filed
with or obtained by the commissioner and which is not generally
available to the public. Nothing in this chapter authorizes the
commissioner or any of the commissioner's officers or employees to
disclose any confidential information except among themselves or to
other administrators or regulatory authorities, or when necessary or
appropriate in a proceeding or investigation under this chapter. No
provision of this chapter either creates any privilege or derogates
from any privilege which exists at common law or otherwise when
documentary or other evidence is sought under a subpoena directed to
the commissioner or any of the commissioner's officers or employees.Subd. 3. Public documents. All applications and other
documents filed with the commissioner under this chapter shall be
open to public inspection in accordance with rules prescribed by the
commissioner. The commissioner may publish information filed with
the commissioner or obtained by the commissioner if, in the judgment
of the commissioner, the action is in the public interest. Subd.
4. Document filing. A document is filed when it is received
by the commissioner. Subd. 5. Register of filing. The
commissioner shall keep a register of all filings which are or have
ever been effective under this chapter and all denial, suspension,
revocation, and other orders which have been entered under this
chapter. The register shall be open for public inspection.
Subd. 6. Copies. The commissioner upon request shall furnish
to any person at a reasonable charge photostatic or other copies,
certified under the seal of office if certification is requested, of
any entry in the register or any order or other document on file in
the commissioner's office. Any copy so certified is admissible in
evidence under section 600.13.Subd. 7. Service of orders. Orders of the commissioner
shall be served by mailing a copy by certified mail to the most
recent address of the recipient of the order as it appears in the
files of the commissioner. Subpoenas shall be served in the same
manner as provided in civil actions in the district courts.
82A.25 Criminal penalties. Any person who willfully violates
section 82A.03
by offering or selling unregistered, nonexempt membership camping
contracts or section 82A.13
or any order of the commissioner pursuant thereto of which that
person has notice, may be fined not more than $5,000 or imprisoned
not more than five years or both. Each of the acts specified shall
constitute a separate offense and a prosecution or conviction for any
one of the offenses shall not bar prosecution or conviction for any
other offense.
82A.26 Nonapplicability of certain law. Membership camping
contracts registered pursuant to this chapter are exempt from the
provisions of chapter 83. To the extent that licensed salespersons
and licensed brokers engage in the offer or sale of membership
camping contracts, those brokers and salespersons are exempt from the
licensing requirements of chapter 82.

USA Statutes : minnesota