82A.01 CITATION.
This chapter may be cited as the "Membership Camping Practices Act."
History: 1985 c 129 s 1

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.
History: 1985 c 129 s 2; 1986 c 444; 1987 c 154 s 1-3; 1989 c 252 s 1; 1993 c 375 art 8 s 14

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.
History: 1985 c 129 s 3

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.
History: 1985 c 129 s 4; 1985 c 248 s 70; 1987 c 154 s 4; 1988 c 493 s 1; 1989 c 252 s
2; 1995 c 233 art 2 s 56; 2000 c 483 s 45,46

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.
History: 1985 c 129 s 5; 1985 c 248 s 70; 1986 c 444; 1995 c 233 art 2 s 56

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.
History: 1985 c 129 s 6; 1986 c 444

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.
History: 1985 c 129 s 7

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.
History: 1985 c 129 s 8; 1999 c 223 art 2 s 12

82A.09 ADVERTISING.
    Subdivision 1.[Repealed, 1988 c 493 s 7]
    Subd. 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.
History: 1985 c 129 s 9; 1987 c 154 s 5; 1988 c 493 s 2

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.
History: 1985 c 129 s 10

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.
History: 1985 c 129 s 11; 1987 c 154 s 6; 1995 c 68 s 6; 1996 c 439 art 3 s 10; 1998 c
254 art 1 s 17

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.
History: 1987 c 154 s 7; 1995 c 202 art 1 s 25

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.
History: 1985 c 129 s 12; 1986 c 444

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.
History: 1985 c 129 s 13; 1989 c 252 s 3

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.
History: 1985 c 129 s 14; 1986 c 444; 1995 c 202 art 1 s 25

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.
History: 1985 c 129 s 15

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.
History: 1985 c 129 s 16; 1999 c 223 art 2 s 13,14

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.
History: 1985 c 129 s 17; 1986 c 444

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.
History: 1985 c 129 s 18; 1986 c 444

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.
History: 1985 c 129 s 19

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.
History: 1985 c 129 s 20; 1986 c 444

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.
History: 1985 c 129 s 21

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.
History: 1985 c 129 s 22; 1986 c 444; 1992 c 564 art 2 s 14,15

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.
History: 1985 c 129 s 23

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.
History: 1985 c 129 s 24; 1986 c 444; 1987 c 154 s 8,9

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.
History: 1985 c 129 s 25

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.
History: 1985 c 129 s 26