SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 2) COMMUNICATIONS SYSTEMS, INC. (Name of Issuer) Common Stock (Title of Class of Securities) 203900 10 5 (CUSIP Number) Check the following box if a fee is being paid with this statement . (A fee is not required only if he filing person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (See Rule 13d-7.) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). (Continued on following page(s)) Page 1 of 3 Pages - -------------------------------------------------------------------------------- CUSIP NO.203900 10 5 13G Page 2 of 3 Pages - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON Paul N. Hanson ###-##-#### - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) ---- N/A (b) ---- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES - ------------------------------------------------------------------------------- ------------------------------------------------------- 5 SOLE VOTING POWER 97,420 NUMBER OF ------------------------------------------------------- ------------------------------------------------------- SHARES 6 SHARED VOTING POWER BENEFICIALLY 362,001 OWNED BY ------------------------------------------------------- ------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER REPORTING 97,420 PERSON ------------------------------------------------------- ------------------------------------------------------- WITH 8 SHARED DISPOSITIVE POWER 362,001 ------------------------------------------------------- - ------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 459,421 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXLCUDES CERTAIN SHARES N/A - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 5.04% - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON* IN - ------------------------------------------------------------------------------- 2 Page 3 of 3 Pages The undersigned hereby amends Item 4 of his Schedule 13G relating to the common stock of Communications Systems, Inc., so as to read as follows: ITEM 4. OWNERSHIP The following ownership of Paul N. Hanson as of December 31, 1996 in the common stock of Communications Systems, Inc. was as follows: (a) Amount Beneficially Owned 459,421 (b) Percent of Voting Shares Outstanding 5.04% (c) Number of shares as to which person has: (i) Sole power to vote or direct the vote: 97,420 (ii) Shared power to vote or direct the vote: 362,001 (iii) Sole power to dispose or direct the disposition of: 97,420 (iv) Shared power to dispose or direct the disposition of: 362,001 The shares listed above include 45,420 shares owned by Mr. Hanson directly, 52,000 shares issuable upon exercise of currently exercisable stock options, 1,411 shares owned by Mr. Hanson's wife, 339,441 shares owned by the Communications Systems, Inc. Employee Stock Ownership Plan ("CSI ESOP") of which Mr. Hanson is a trustee and 21,149 shares owned by the Hector Communications Corporation Employee Stock Ownership Plan of which Mr. Hanson is a trustee ("Hector ESOP"). Mr. Hanson disclaims any beneficial ownership of the shares owned by his wife and disclaims any beneficial ownership of the shares owned by the CSI and Hector ESOP's in excess of the shares allocated to his account, which totaled 8,599 at December 31, 1996. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: February 11, 1997 /s/ Paul N. Hanson Paul N. Hanson