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211886ORIGINAL TO CITY CLERK PRESENTED BY COMMISSIONEI e CITY OF ST. PAUL COUNCIL 211886 OF PPE OF THE CITY CLERK FILE NO C14 AUQJ nON-GENERAL FORM RESOLVED, That the Council of the City of Saint Paul hereby takes cognizance of the pendency of certain proposed legislation before the Minnesota Legislature which will regulate the sale of land such as out -of -state homesites and lake lots which are frequently misrepresented, said legislation being embodied in Senate File No. 708, and believes that such legislation will be beneficial to the citizens of the State of Minnesota and the City of Saint Pau13 and be it FURTHER RESOLVED, That the Council of the City of Saint Paul hereby requests the Legislature to enact and adopt such legislation and respectfully requests the members of the Ramsey County Delegations to support enactment into law of the provisions of said Senate File No; 708. COUNCILMEN Yeas Nays Dalglish Holland Loss Mortinson Peterson Mr. President, is-le' A 10M 642 Council File No. 211886 -13y James J. Dalglish- CitRy of Saint That hereby ac es cogni- zance of the pendency of certain pro- posed legislation before the Minnesota Legislature which will regulate the sale of land such as out -of -state home - sites and lake lots which are frequently misrepresented, said legislation Hein g embodied in Senate File No. 708, and believes, of the citizens of the State Of Minnesota and the City of Saint Paul: and be it Further Resolved, That the Council of the City of Saint Paul hereby re- quests the Legislature to enact and adopt such legislation and respectfully requests the members of the Ramsey County Delegations to support enact- ment into law of the provisions of said Senate File No. 708. Adopted by the Council March 28, 1963. Approved March 28, ,1963. (March 3Q, 1963) MAR 2 1963 Adopted by the Council 19— MAR 2 8 1963 Approved 19— In Favor Mayor Against • r • DUPLICATE TO PRINTER CITY OF ST. PAUL OFFICE OF THE CITY CLERK COUNCIL RESOLUTION - GENERAL FORM PRESENTED BY COMMISSION FILE NO. NO. 211886 86 RESOLVED, That the Council of the City of Saint Paul hereby takes cognizance of the pendency of certain proposed legislation before the Minnesota Legislature which will regulate the sale of land such as out -of -state homesites and lake lots which are frequently misrepresented, said legislation being embodied in Senate File No. 708, and believes that such legislation will be beneficial to the citizens of the State of Minnesota and the City of Saint Paull and be it FURTHER RESOLVED, That the Council of the City of Saint Paul hereby requests the Legislature to enact and adopt such legislation and respectfully requests the members of the Ramsey County Delegation to support enactment into law of the provisions of said Senate File No. 708. COUNCILMEN Yeas Nays Dalglish Holland Loss Mortinson 1 Peterson V ~ Mr. P esident, Vavou Z lOB1 8-82 In Favor C�Against MAP ' '28 196' Adopted by the Council 19— MAR Approved 19— Mayor GEORGE M. SHEPARD C o; LE ��GF, N Q VERY • -•�� STREET AND HIGHWAY C- I T Y O; F; S A I N T :P� r�• ENGINEERING COORDINATOR * {i' �� 3 7 A . € 7jl �aor, i jjl_h• oil --- -• Gaj�it of MiI o a - s a F ° ^� .,,. - : C rJ. COTTER �— DEPART Et�`O PUB LIC —W R OS ERINTENDENT' SANITATION 4 _ 2r3Hall VCo�urt House- T2, �' - - �t 4) _j � T ffA 0 4 �_ '�� ( = 1 ILTON ROSYM IClilll PH ­ w. - 'WA - Commissioneti� � E��� 11 - �� wMillu P. BEHRENS. r r r r a I I Deputy1Commissioner - -- ' - X22 March 21, 1963 r - Mr. Donald L. Lais Corporation Counsel B U I L D I N G Dear Mr. Lais: RECEIIM MAR 2 2 1963 CORPORA I i I. N �., ....._ < Reference is made to a copy of a bill which has been introduced in the current session of the Minnesota Legisla- ture known as S. F. No. 708, an act relating to the control of the sale of subdivided lands; providing penalties, which you referred to me for my review. We have reviewed this bill in detail; and as we under- stand it, the bill is basically meant to control the sale of subdivided lands that lie outside the State of Minnesota by unscrupulous real estate promoters. Our personal opinion is that a bill of this kind in some form or another should be enacted as quickly as possible by the Legislature as many of these promoters are working not only within the limits of Minnesota but in many other states. Thank you for referring this bill to me; and if any further information is needed, do not hesitate to call. GB/id cc: Comr. M. Rosen Mr. E. V. Avery Mr. John Connelly Yours truly, /j ` Greg Beckett Local Improvement Engineer O. Introducod by o8dahl, Thuet, Nosier February 20, 1963 Roz. to Cori. on G©roral Legi,elation A BILL'FOR AN ACT EMT s far 1432 S. F. 1.10. 708 Companion H. F. Raf. to H. Com. RELATING TO THE CONTROL OF THE SALE OF SUBDIVIDED LANDS; PROVIDING PENALTIES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [DEFI.:IiIr: ". ] Subd= Vision 1. (TERMS. J For the purpose of ti:f s _n%z _,. this section have the man?. —s ascribed to them. Subd. 2. (CO3.•.iISSIO'`. .) "Co:.-.�issioner" means the commissio::er of securities of the state of Miianesota or his authorized delegate. Subd. 3. (PERSON.) "Person" means any person, firm, partnership, corporation, or other association. Subd. 4. (SUBDIVISION.) "Subdivision" or "subdivided lands" means improved or unimproved land or lands, located within or without the state, which are divided or proposed to be divided for the purpose of sale or lease, immediate or future, into eleven or more lots or parcels. Sec. 2. [EXCEPTIONS.) This act does not apply to: (a) Sales of lots.or parcels of land that do not constitute a "subdivision" oz "subdivided lands" as defined herein; (b) The sale of lots in a cemetery; (c) The leasing of apartments, stores, offices, or similar space in a building; (d) Any subdivision located within the corporate limits of a municipality in this state incorporated prior to January 1, 19.63; 4,od (e) Any subdiviion which has qualified for loan guarantees'by any agency of the United States g verb nt. 1 . ' i r Sec. 3. [NOTICE OF INTENTION.] S.F. No. 708 PhZe 2, Subdivision 1. No EMT:far 1432 subdivided lands located in Minnesota may be offered for sale, nor may subdivided lands located elsewhere be offered for sale in 2iinnesota, until the owner, his agent, his employee, his representative, or subdivider shall notify the commissioner in writing of his intention to make such offer. Subd. 2. The notice of intention as provided in subdivision 1 shall contain the following information: (a) The name and address of all fee owners, equitable owners, mortgagees, and optionees; (b) The name and address of the persons offering the lots or parcels for sale; (c). The legal description and area of lands,together with a map showing the layout proposed and relation to existing streets or roads; (d) A statement of the conditions,of the title to the lend, particularly including all encumbrances thereon; (a) A statement of the terms and conditions on w1lich it is intended to dispose of the land, together with copies of any and all forms of conveyance intended to be used; (f) A statement of the provisions for legal access, sewage disposal, and public utilities in the proposed subdivision, including water, electricity, gas, and telephone facilities; and {g) Such other information as the owner, his agent, his employee, his representative, or subdivider spay desire to present. Sec. 4. [QUESTIONNAIRE, FILING FEE.] The commissioner may require such additional information concerning the project as is deened necessary, and is not inconsistent With I EMT :far 14 S. F. No. 708 Page 3 this act. The commissioner may prepare a questionnaire for the owner, his agent, his employee, his representative, or subdivider to answer. Uinless. such request -is served upon the applicant within 30 days ;after receipt ,of the notice of " intention, the commissioner -shall be diemed to have waived the right to require a public report. A filing fee-of $50 shall- 44tompany the answered questionnaire. The questionnaire concerning any subdivision proposed to be sold or leased as potential mineral, oil, or gas property shall be accompanied by an additional filing foe of $50. The co=issioner shall retain all filing and other fees and payments made under this,act to defray, the expenses of administration, which funds-shall be deposited in the state treasury an -74 e hereby appropriated to the commissioner in accordance with esota Statutes, Sections 82.14 and 82.15. Sec. 5. [PUBLIC REPORT.]" When the commissioner makes investigation of,:any subdivision, he shall prepare a public report of his findings: Such public report shall be prepared and served upon the °applicant by mail within 90 days after the receipt of the answers to the questionnaire- descilbed in section 4,, unless the commissioner and the parties stipulate otherwise. If the ex issioner determines that publication of the public report would be of benefit to the investing public, he say do so. If-the report is not so issued within 90 days or such time as the parties ®ay stipulate, the land maybe sold or leased•withaut providing purchasers of lessees with a copy of the public report. Sec. 6. (UNLAWFUL SALES.) It shall be unlawful to sell or lease or offer to sell or lease lots or parcels.in a subdivision prior to the issuance of a public report unless: _3 • EMT:far 1432 S.F. 110. 708 Page 4. (a) The filing of additional information following the receipt of a notice of intention is expressly waived in writing by the commissioner; or (b) More thin 30 days have elapsed since the filing of the notice of intention and no request for additional information has been mailed to the applicant; or (c) After submission of the original notice of intent there be a material change in the conditions of such offering without first notifying the commissioner in writing of such intended change and securing a written acknowledgment of the commissioner. ' Sec. 7. [RECEiPT'TAKEN.j Subdivision 1. A copy of the public report as provided for in section S and an opportunity to read same shall be given to each prospective purchaser or lessee by the owner, subdivider., employee, representative, or agent, at his expense, and a receipt taken therefor prior to the execution of a binding contract or agreement for the sale or lease of any. lot or parcel in a subdivision. Receipts taken for any public report shall be kept in file in possession of the owner, subdivider, employee, representative, or agent subject to inspection by the commissioner for a period of three years from the date the receipt is taken. Subd. 2. The public report or any reference thereto shall not be used for advertising purposes unless the report is used in its entirety. No portion of the report shall be underscored, italicized, or- printed in larger or heavier type than the balance of the report unless the true copy of the report furnished by the commissioner so emphasizes any . • words or phraseology. ' 4 _... ., �. +.....rr, .�..- `tea +..► .... tw.t -� 'a•..t ..�..n►i.�. `- � --.-_; . +....u...a n..,'.�. .- ia'....- ��r..v.a.1.:� ti. -.-.. n.. s..�.c..- �.�r�....- ...- .���.►- .�.... ... ..�....__— �.- .�- .._, -� - -_ _. J EMT :far 1432 S. F. No. 708 Page 5 Sec. 8. [INVESTIGATION OF SUBDIVISIONS.] The commissioner may investigate any subdivision being offered for sale or lease in this state. For the purposes of such investigation, the commissioner may: (a) Use and rely upon any relevant information or data concerning a subdivision obtained by him from the federal housing administration, the United States veterans administration, or any state -or federal agency having supervisory duties over real estate subdivisions which are • comparable to those of the commissioner; (b.) Require reports prepared by competent authorities as to any hazard to which the subdivision may be subject or any factor which might affect the value or utility of lots or parcels within the subdivision; (c) Require evidence of compliance with the • It requirements of appropriate authorities; and (d) Require,an* inspection of the subdivision to be made. ' Sec. 9. [TRAVEL ALLOWANCE FOR INSPECTION.) When an inspection is to be made of subdivided lands, wherever situated, being offered for sale or lease in this state, the commissioner may require,, in addition to - -tho filing fee, an amount equivalent to ton cents a mile for each mile going and returning, estimated by the co®issioner to be,traveled to the location of the project, and an amount estimated to be necessary to cover the additional expenses of such inspection, not to exceed $50 a day for each day consumed in the inspection of the project. Sec. 10. [SALES CONTRACT.] Every sales contract relating to the purchase,of real property,in a subdivision • shall clearly set forth the legal description of the property, and the terms of the contract. 5 ' EMT:far 1432 S.F. No, 708 Page 6 Sec. 11. [NOTIFICATION OF OPTION, SALE OR LEASE.] When 11 or more lots or parcels within a subdivision are optioned, leased, or sold to another, or when an interest therein is acquired by one owner, lessee, or optionee, the , co=issioner shall be notified by the parties to the transaction. Sec. 12. -': (INSPECTION OF RECORDS.] Records of the sale lease of parcels within.a subdivision shall be subject to inspection by the commissioner, who shall be notified of any change of address affecting the location of the owner's, subdividers, employee's, representative's, or agent's .records. Sec. 13. [RULES AND REGULATIONS.] The commissioner may adopt rules and regulations to- implement the provisions of this act. Sec. 14. (CIVIL LIABILITY.) Any owner, agent, employee, representative, or subdivider who tails to pay the fees required as herein provided, for filing tee or inspection fee, shall be' liable civilly in,an action brought by the commissioner for damages in the amount of unpaid fees. Sac. 15. [ADMINISTRATIVE SNFORCEMENT.] Subdivision 1. (ORDERS.] Whenever the coa�missioner, based upon probable cause, believes that any person is violating.or is about to violate any provision of this -act, he may order the person to cease and desist from doing so. If an examination shows that a proposed sale or lease of subdivided lards will Constitute ALArepresentaii�n, fraud, or deciit, the' aoattissiouer say prohibit the sale, lease, or offering of lands. 0 SuU4. 2. J XMCT Or OIDIRS. j Orders. issued under 6 EMT:far 1432 S. F. No. 708 Pad© 7 subdivision 1 of this section shall take effect upon issuance. If the party made. subject to the order desires a hearing thereon, he shall indicate that fact in writing to the commissioner. A hearing must be held no later than 30 days after receipt of this notice by the commissioner. Pending the final decision of the commissioner, the order shall.remain in effect as originally promulgated, unless the commissioner dissolves or modifies it pending final decision. if no hearing is held within 30 days, the order is void. Subd. 3. [APPEALS.] Appeals may be taken to the district court from final orders of the commissioner issued following a hearing. Sec. 16. (INJUNCTION.) The commissioner may apply to the district court to enjoin violations of the act and of his lawful orders. Sec. 17. [FELONY.) Any owner, agent, or subdivider offering to sell or lease subdivided lands within the meaning of this act, or any officer, agent, or employee of such person, who knowingly authorizes, directs, or aids in the publication, advertisement, distribution, or circularization of any false statement or representation concerning any land, or subdivision thereof offered for sale or lease, and every such person who, with knowledge that any advertisement, pamphlet, prospectus, or letter concerning any said land or subdivision contains any written statement that is false or fraudulent, issues, circulates, publishes, or distributes the same, or shall cause the same to be issued,-circulated, published, or distributed, shall be guilty of a felony. 7 + ' L `a EMT :far 143 S. F. l;o. 708 Page 8 Sec. 18. [MISDEMEANOR AND PENALTIES.) The following acts are misdemeanors: (a) The willful violation or failure to comply, with any of the provisions of sections-1 to 16; (b) The willful violation, failure, omission, or neglect to obey, observe, or comply with any order, permit, decision, demand, or requirement of the commissioner; (c) The offering for sale or lease as an agent, salesman, or broker for a subdivider, developer, or owner of subdivided lands of a subdivision, wherever situated, which is being, offered for sale within this state without first. complying with the provisions of sections 1 to 16; and (d) The advertising for sale or lease in this state of a parcel in an out -of -state subdivision or in any other manner aiding an owner, subdivider, or developer of an out -of -state subdivision who has not complied with the provisions of sections 1 to 16. In addition to any'penalty provided for commission of misdemeanors, a person violating any provision of this section shall forfeit to this state for deposit in the state treasury a civil penalty in the sum of $100, together with $100 for each month or a fraction thereof during which he continues such violation. Sec. 19. (STATUTE OF LIMITATIONS.) The statute of limitations shall not begin to run with respect to any civil or criminal cause of action arising out of-the sale or lease of a lot or parcel in violation of sections 1 to 16 until a conveyance describing such lot or parcel is'recorded with the appropriate recording authority. This section does not prohibit the maintenance of any action before the recording of such conveyance. 8