1.1 	A bill for an act
1.2 	relating to commerce; establishing a supplemental budget for the Department of 
1.3 	Commerce; adding and modifying provisions governing insurance, financial 
1.4 	institutions, and other entities regulated by the Department of Commerce; making 
1.5 	technical changes to various provisions administered by the Department of 
1.6 	Commerce; updating references to federal law; appropriating money; requiring 
1.7 	reports; amending Minnesota Statutes 2020, sections 45.0135, subdivisions 2a, 
1.8 	2b; 46.131, subdivisions 2, 4, 11; 47.08; 47.16, subdivisions 1, 2; 47.172, 
1.9 	subdivision 2; 47.28, subdivision 3; 47.30, subdivision 5; 48A.15, subdivision 1; 
1.10 	53.03, subdivisions 1, 5; 53C.02; 55.10, subdivision 1; 56.02; 60A.031, subdivision 
1.11 	6, by adding subdivisions; 60A.033, subdivisions 8, 9, by adding subdivisions; 
1.12 	60A.954, subdivision 1; 65B.84, subdivisions 1, 2; 72A.12, subdivision 4; 72A.20, 
1.13 	subdivision 11; 72A.328, subdivisions 1, 2; 80A.61; 80C.05, subdivision 2; 80E.13; 
1.14 	239.761, subdivisions 3, 4; 239.791, subdivision 2a; 296A.01, subdivision 23; 
1.15 	325E.21, subdivision 4; proposing coding for new law in Minnesota Statutes, 
1.16 	chapters 60B; 72A; 214; repealing Minnesota Statutes 2020, sections 60A.033, 
1.17 	subdivision 3; 72A.08; 72A.20, subdivisions 10, 15.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	ARTICLE 1
1.20 	SUPPLEMENTAL APPROPRIATIONS

1.21	Section 1. APPROPRIATIONS.
 	
1.22 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.23 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.24 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.25 	The figures "2022" and "2023" used in this article mean that the appropriations listed under 
1.26 	them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively. 
1.27 	"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium" 
1.28 	is fiscal years 2022 and 2023. If an appropriation in this act is enacted more than once in 
1.29 	the 2022 legislative session, the appropriation must be given effect only once. Appropriations 
2.1 	for the fiscal year ending June 30, 2022, are effective the day following final enactment. 
2.2 	The appropriations made under this article supplement, and do not supersede or replace, 
2.3 	the appropriations made under Laws 2021, First Special Session chapter 4, article 1.

2.4				APPROPRIATIONS
	
2.5				Available for the Year
	
2.6				Ending June 30
	
2.7					2022
		2023

2.8	Sec. 2. DEPARTMENT OF COMMERCE

2.9	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	$1,347,000
	
2.10 	The amounts that may be spent for each 
2.11 	purpose are specified in the following 
2.12 	subdivisions.

2.13	Subd. 2.Administrative Services
 		-0-
		-0-
	
2.14 	$19,000 in fiscal year 2024 and $23,000 in 
2.15 	fiscal year 2025 are base amounts for the 
2.16 	licensing disqualification and preliminary 
2.17 	application requirements under Minnesota 
2.18 	Statutes, section 214.035.

2.19	Subd. 3.Financial Services
 		-0-
		300,000
	
2.20 	$300,000 in fiscal year 2023 is for additional 
2.21 	securities staff.

2.22	Subd. 4.Insurance
 		-0-
		525,000
	
2.23 	$525,000 in fiscal year 2023 is for additional 
2.24 	staff in the insurance and enforcement 
2.25 	divisions. The additional staff must focus on 
2.26 	property- and casualty-related insurance 
2.27 	products and market conduct examinations.

2.28	Subd. 5.Enforcement and Examinations
 		-0-
		522,000
	
2.29 	$522,000 in fiscal year 2023 is for the auto 
2.30 	theft prevention library under Minnesota 
2.31 	Statutes, section 65B.84, subdivision 1, 
2.32 	paragraph (d). This is a onetime appropriation.

2.33	Sec. 3. BOARD OF ACCOUNTANCY
 	$
	-0-
	$
	-0-
	
3.1 	Licensing Disqualifications; Preliminary 
3.2 	Applications.
3.3 	$6,000 in fiscal year 2024 is the base amount 
3.4 	to the Board of Accountancy for the licensing 
3.5 	disqualification and preliminary application 
3.6 	requirements under Minnesota Statutes, 
3.7 	section 214.035. This is a onetime 
3.8 	appropriation.

3.9	Sec. 4. ATTORNEY GENERAL
 	$
	-0-
	$
	-0-
	
3.10 	Licensing Disqualifications; Preliminary 
3.11 	Applications.
3.12 	$24,000 in fiscal year 2024 and $24,000 in 
3.13 	fiscal year 2025 are base amounts to the 
3.14 	attorney general for the licensing 
3.15 	disqualification and preliminary application 
3.16 	requirements under Minnesota Statutes, 
3.17 	section 214.035.

3.18	Sec. 5. DEPARTMENT OF REVENUE
 	$
	-0-
	$
	-0-
	
3.19 	Licensing Disqualifications; Preliminary 
3.20 	Applications.
3.21 	$19,000 in fiscal year 2024 and $3,000 in 
3.22 	fiscal year 2025 are base amounts to the 
3.23 	Department of Revenue for the licensing 
3.24 	disqualification and preliminary application 
3.25 	requirements under Minnesota Statutes, 
3.26 	section 214.035.

3.27	Sec. 6. GAMBLING CONTROL BOARD
 	$
	-0-
	$
	-0-
	
3.28 	Licensing Disqualifications; Preliminary 
3.29 	Applications.
3.30 	$3,000 in fiscal year 2024 and $3,000 in fiscal 
3.31 	year 2025 are base amounts from the lawful 
3.32 	gambling regulation account in the special 
3.33 	revenue fund to the Gambling Control Board 
4.1 	for the licensing disqualification and 
4.2 	preliminary application requirements under 
4.3 	Minnesota Statutes, section 214.035.

4.4	Sec. 7. DEPARTMENT OF EDUCATION
 	$
	-0-
	$
	-0-
	
4.5 	Licensing Disqualifications; Preliminary 
4.6 	Applications.
4.7 	$22,000 in fiscal year 2024 and $22,000 in 
4.8 	fiscal year 2025 are base amounts to the 
4.9 	Department of Education for the licensing 
4.10 	disqualification and preliminary application 
4.11 	requirements under Minnesota Statutes, 
4.12 	section 214.035.

4.13 	Sec. 8. COMMERCE FRAUD BUREAU; TRANSFER.
 4.14 	$870,000 in fiscal year 2023 is transferred from the general fund to the insurance fraud 
4.15 	prevention account for five additional peace officers in the Commerce Fraud Bureau. The 
4.16 	base for this transfer is $811,000 in fiscal year 2024 and $811,000 in fiscal year 2025.

4.17 	ARTICLE 2
4.18 	COMMERCE POLICY

4.19 	Section 1. Minnesota Statutes 2020, section 45.0135, subdivision 2a, is amended to read:
4.20 		Subd. 2a.Authorization. (a) The commissioner may appoint peace officers, as defined 
4.21 	in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as 
4.22 	defined in section 626.84, subdivision 1, paragraph (f), known as the Commerce Fraud 
4.23 	Bureau, to conduct investigations, and to make arrests under sections 629.30 and 629.34. 
4.24 	The primary jurisdiction of the law enforcement agency is limited to offenses related to 
4.25 	insurance fraud with a nexus to insurance-related crimes or financial crimes.
4.26 	(b) Upon request and at the commissioner's discretion, the Commerce Fraud Bureau 
4.27 	may respond to a law enforcement agency's request to exercise law enforcement duties in 
4.28 	cooperation with the law enforcement agency that has jurisdiction over the particular matter.
4.29 	(c) The Commerce Fraud Bureau must allocate at least 70 percent of its work to insurance 
4.30 	fraud, as defined in sections 60A.951, subdivision 4, and 609.611.

5.1 	Sec. 2. Minnesota Statutes 2020, section 45.0135, subdivision 2b, is amended to read:
5.2 		Subd. 2b.Duties. The Commerce Fraud Bureau shall:
5.3 	(1) review notices and reports of insurance fraud within the Commerce Fraud Bureau's 
5.4 	primary jurisdiction submitted by authorized insurers, their employees, and agents or 
5.5 	producers;
5.6 	(2) respond to notifications or complaints of suspected insurance fraud within the 
5.7 	Commerce Fraud Bureau's primary jurisdiction generated by other law enforcement agencies, 
5.8 	state or federal governmental units, or any other person;
5.9 	(3) initiate inquiries and conduct investigations when the bureau has reason to believe 
5.10 	that insurance fraud an offense within the Commerce Fraud Bureau's primary jurisdiction
5.11 	has been or is being committed; and
5.12 	(4) report incidents of alleged insurance fraud crimes disclosed by its the Commerce 
5.13 	Fraud Bureau's investigations to appropriate law enforcement agencies, including, but not 
5.14 	limited to, the attorney general, county attorneys, or any other appropriate law enforcement 
5.15 	or regulatory agency, and shall assemble evidence, prepare charges, and otherwise assist 
5.16 	any law enforcement authority having jurisdiction.

5.17 	Sec. 3. Minnesota Statutes 2020, section 46.131, subdivision 2, is amended to read:
5.18 		Subd. 2.Assessment authority. Each bank, trust company, savings bank, savings 
5.19 	association, regulated lender, industrial loan and thrift company, credit union, motor vehicle 
5.20 	sales finance company, debt management services provider, debt settlement services provider, 
5.21 	insurance premium finance company, and residential PACE administrator, as defined in 
5.22 	section 216C.435, subdivision 10a, financial institution governed by chapters 46 to 59A, 
5.23 	216C, and 332 to 332B that is organized under the laws of this state or required to be 
5.24 	administered by the commissioner of commerce shall pay into the state treasury its 
5.25 	proportionate share of the cost of maintaining the Department of Commerce. This subdivision 
5.26 	does not apply to student loan servicers or collection agencies.

5.27 	Sec. 4. Minnesota Statutes 2020, section 46.131, subdivision 4, is amended to read:
5.28 		Subd. 4.General assessment basis. (a) Assessments shall be made by the commissioner 
5.29 	against each institution within the industry on an equitable basis, according to the total assets
5.30 	or business volume of each institution as of the end of the previous calendar year.
6.1 	(b) Assessments against residential PACE administrators, as defined in section 216C.435, 
6.2 	subdivision 10a, must be made by the commissioner according to the total business volume 
6.3 	as of the end of the previous calendar year.

6.4 	Sec. 5. Minnesota Statutes 2020, section 46.131, subdivision 11, is amended to read:
6.5 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
6.6 	account is created as a separate account in the special revenue fund. Earnings, including 
6.7 	interest, dividends, and any other earnings arising from account assets, must be credited to 
6.8 	the account.
6.9 	(b) The account consists of funds received from assessments under subdivision 7, 
6.10 	examination fees under subdivision 8, and funds received pursuant to subdivision 10 and 
6.11 	the following provisions: sections 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54, 
6.12 	subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; 48.61, subdivision 7, paragraph 
6.13 	(b); 49.36, subdivision 1; 52.203;53B.09; 53B.11, subdivision 1; 53C.02; 56.02; 58.10;
6.14 	58A.045, subdivision 2; and 59A.03;216C.437, subdivision 12; 332A.04; and 332B.04.
6.15 	(c) Funds in the account are annually appropriated to the commissioner of commerce 
6.16 	for activities under this section.

6.17 	Sec. 6. Minnesota Statutes 2020, section 47.08, is amended to read:
6.18 	47.08 ARTICLES OF INCORPORATION FILED WITH COMMISSIONER.
6.19 	All persons proposing to incorporate and organize any financial institution, whether 
6.20 	defined or described as such by the laws of the state, shall, before doing any business in the 
6.21 	state as a corporation, and before filing their articles of incorporation with the secretary of 
6.22 	state or with any other officer with whom the law requires such articles to be filed or 
6.23 	recorded, file a copy of such the proposed articles of incorporation with the commissioner 
6.24 	of commerce.

6.25 	Sec. 7. Minnesota Statutes 2020, section 47.16, subdivision 1, is amended to read:
6.26 		Subdivision 1.Filing. The certificate of a corporation must be filed for record with the 
6.27 	secretary of state commissioner of commerce. If the secretary of state commissioner of 
6.28 	commerce finds that it conforms to law and that the required fee has been paid, the secretary 
6.29 	of state commissioner of commerce must record it and certify that fact on it. The secretary 
6.30 	of state may not accept a certificate for filing unless the certificate also contains the 
6.31 	endorsement of the commissioner of commerce.

7.1 	Sec. 8. Minnesota Statutes 2020, section 47.16, subdivision 2, is amended to read:
7.2 		Subd. 2.Certificate of authority. If the commissioner of commerce is satisfied that the 
7.3 	corporation has been organized for legitimate purposes, and under such conditions as to 
7.4 	merit and have public confidence, and that all provisions of law applicable to every branch 
7.5 	of business in which, by the terms of its certificate, it is authorized to engage, have been 
7.6 	complied with, the commissioner shall so certify. When the original certificate and the
7.7 	certificate of incorporation from the secretary of state is filed with the commissioner of 
7.8 	commerce, the commissioner shall, within 60 days thereafter, execute and deliver to it a 
7.9 	certificate of authority.

7.10 	Sec. 9. Minnesota Statutes 2020, section 47.172, subdivision 2, is amended to read:
7.11 		Subd. 2.Effect. The certificate to be filed to accomplish a restated certificate of 
7.12 	incorporation must be entitled "restated certificate of incorporation of (name of financial 
7.13 	corporation)" and must contain a statement that the restated certificate supersedes and takes 
7.14 	the place of the existing certificate of incorporation and all amendments to it. The restated 
7.15 	certificate of incorporation when executed, filed and recorded in the manner prescribed for 
7.16 	certificate of amendment supersedes and takes the place of an existing certificate of 
7.17 	incorporation and amendments to it. The secretary of state upon request must certify the 
7.18 	restated certificate of incorporation.

7.19 	Sec. 10. Minnesota Statutes 2020, section 47.28, subdivision 3, is amended to read:
7.20 		Subd. 3.Recording. Upon receipt of the fees required for filing and recording amended 
7.21 	articles of incorporation of savings banks, the secretary of state commissioner of commerce
7.22 	shall record the amended articles of incorporation and certify that fact thereon, whereupon 
7.23 	the conversion of such savings bank into a savings association shall become final and 
7.24 	complete and thereafter said corporation shall have the powers and be subject to the duties 
7.25 	and obligations prescribed by the laws of this state applicable to savings associations.

7.26 	Sec. 11. Minnesota Statutes 2020, section 47.30, subdivision 5, is amended to read:
7.27 		Subd. 5.Recording. Upon receipt of the fees required for filing and recording amended 
7.28 	articles of incorporation of savings associations, the secretary of state commissioner of 
7.29 	commerce shall record the amended articles of incorporation and certify that fact thereon, 
7.30 	whereupon the conversion of such savings association into a savings bank shall become 
7.31 	final and complete and thereafter the signers of said amended articles and their successors 
8.1 	shall be a corporation, and have the powers and be subject to the duties and obligations 
8.2 	prescribed by the laws of this state applicable to savings banks.

8.3 	Sec. 12. Minnesota Statutes 2020, section 48A.15, subdivision 1, is amended to read:
8.4 		Subdivision 1.Authorization. (a) A trust company organized under the laws of this 
8.5 	state or a state bank and trust may, after completing the notification procedure required by 
8.6 	this subdivision, establish and maintain a trust service office at any office in this state or of 
8.7 	any other state or national bank. A state bank may, after completing the notification procedure 
8.8 	required by this subdivision, permit a trust company organized under the laws of this state 
8.9 	or a state bank and trust or a national bank in this state that is authorized to exercise trust 
8.10 	powers to establish and maintain a trust service office at any of its banking offices.
8.11 	(b) The trust company or state bank and trust and a state bank at which a trust service 
8.12 	office is to be established according to this section shall jointly file, on forms provided by 
8.13 	the commissioner, a notification of intent to establish a trust service office. The notification 
8.14 	must be accompanied by a filing fee of $100 payable to the commissioner, to be deposited 
8.15 	in the general fund of the state financial institutions account under section 46.131, subdivision 
8.16 	11. No trust service office shall be established according to this section if disallowed by 
8.17 	order of the commissioner within 30 days of the filing of a complete and acceptable 
8.18 	notification of intent to establish a trust service office. An order of the commissioner to 
8.19 	disallow the establishment of a trust service office under this section is subject to judicial 
8.20 	review under sections 14.63 to 14.69.

8.21 	Sec. 13. Minnesota Statutes 2020, section 53.03, subdivision 1, is amended to read:
8.22 		Subdivision 1.Application, fee, notice. Any corporation hereafter organized as an 
8.23 	industrial loan and thrift company, shall, after compliance with the requirements set forth 
8.24 	in sections 53.01 and 53.02, file a written application with the Department of Commerce 
8.25 	for a certificate of authorization. A corporation that will not sell or issue thrift certificates 
8.26 	for investment as permitted by this chapter need not comply with subdivision 2b. The 
8.27 	application must be in the form prescribed by the Department of Commerce. The application 
8.28 	must be made in the name of the corporation, executed and acknowledged by an officer 
8.29 	designated by the board of directors of the corporation, requesting a certificate authorizing 
8.30 	the corporation to transact business as an industrial loan and thrift company, at the place 
8.31 	and in the name stated in the application. At the time of filing the application the applicant 
8.32 	shall pay $1,500 filing fee if the corporation will not sell or issue thrift certificates for 
8.33 	investment, and a filing fee of $8,000 if the corporation will sell or issue thrift certificates 
9.1 	for investment. The fees must be turned over by the commissioner to the commissioner of 
9.2 	management and budget and credited to the general fund collected by the commissioner 
9.3 	and deposited in the financial institutions account under section 46.131, subdivision 11. 
9.4 	The applicant shall also submit a copy of the bylaws of the corporation, its articles of 
9.5 	incorporation and all amendments thereto at that time. An application for powers under 
9.6 	subdivision 2b must also require that a notice of the filing of the application must be 
9.7 	published once within 30 days of the receipt of the form prescribed by the Department of 
9.8 	Commerce, at the expense of the applicant, in a qualified newspaper published in the 
9.9 	municipality in which the proposed industrial loan and thrift company is to be located, or, 
9.10 	if there be none, in a qualified newspaper likely to give notice in the municipality in which 
9.11 	the company is proposed to be located. If the Department of Commerce receives a written 
9.12 	objection to the application from any person within 15 days of the notice having been fully 
9.13 	published, the commissioner shall proceed in the same manner as required under section 
9.14 	46.041, subdivisions 3 and 4, relating to state banks.

9.15 	Sec. 14. Minnesota Statutes 2020, section 53.03, subdivision 5, is amended to read:
9.16 		Subd. 5.Place of business. Not more than one place of business may be maintained 
9.17 	under any certificate of authorization issued subsequent to the enactment of Laws 1943, 
9.18 	chapter 67, pursuant to the provisions of this chapter, but the Department of Commerce 
9.19 	may issue more than one certificate of authorization to the same corporation upon compliance 
9.20 	with all the provisions of this chapter governing an original issuance of a certificate of 
9.21 	authorization. To the extent that previously filed applicable information remains unchanged, 
9.22 	the applicant need not refile this information, unless requested. The filing fee for a branch 
9.23 	application shall be $500 and the investigation fee $250. An industrial loan and thrift 
9.24 	corporation with deposit liabilities may change one or more of its locations upon the written 
9.25 	approval of the commissioner of commerce. A fee of $100 must accompany each application 
9.26 	to the commissioner for approval to change the location of an established office. An industrial 
9.27 	loan and thrift corporation that does not sell and issue thrift certificates for investment may 
9.28 	change one or more locations by giving 30 days' written notice to the Department of 
9.29 	Commerce which shall promptly amend the certificate of authorization accordingly. No 
9.30 	change in place of business of a company to a location outside of its current trade area or 
9.31 	more than 25 miles from its present location, whichever distance is greater, shall be permitted 
9.32 	under the same certificate unless all of the applicable requirements of this section have been 
9.33 	met. All money collected by the commissioner under this chapter must be deposited into 
9.34 	the financial institutions account under section 46.131, subdivision 11.

10.1 	Sec. 15. Minnesota Statutes 2020, section 53C.02, is amended to read:
10.2 	53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
10.3 	(a) No person shall engage in the business of a sales finance company in this state without 
10.4 	a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank, 
10.5 	trust company, savings bank, savings association, or credit union, whether state or federally 
10.6 	chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated 
10.7 	Loan Act authorized to do business in this state shall be required to obtain a license under 
10.8 	sections 53C.01 to 53C.14.
10.9 	(b) The application for a license shall be in writing, under oath and in the form prescribed 
10.10 	by the commissioner. The application shall contain the name of the applicant; date of 
10.11 	incorporation, if incorporated; the address where the business is or is to be conducted and 
10.12 	similar information as to any branch office of the applicant; the name and resident address 
10.13 	of the owner or partners, or, if a corporation or association, of the directors, trustees and 
10.14 	principal officers, and other pertinent information the commissioner requires.
10.15 	(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the 
10.16 	following year, or any part thereof shall be the sum of $250 for the principal place of business 
10.17 	of the licensee, and the sum of $125 for each branch of the licensee. Any licensee who 
10.18 	proves to the satisfaction of the commissioner, by affidavit or other proof satisfactory to 
10.19 	the commissioner, that during the 12 calendar months of the immediately preceding fiscal 
10.20 	year, for which the license has been paid that the licensee has not held retail installment 
10.21 	contracts exceeding $15,000 in amount, shall be entitled to a refund of that portion of each 
10.22 	license fee paid in excess of $25. The commissioner shall certify to the commissioner of 
10.23 	management and budget that the licensee is entitled to a refund, and payment thereof of the 
10.24 	refund shall be made by the commissioner of management and budget. The amount necessary 
10.25 	to pay for the refundment of the license fee is appropriated out of the general fund from the 
10.26 	financial institutions account under section 46.131, subdivision 11. All license fees received 
10.27 	by the commissioner under sections 53C.01 to 53C.14 shall be deposited with the 
10.28 	commissioner of management and budget.
10.29 	(d) Each license shall specify the location of the office or branch and must be 
10.30 	conspicuously displayed there. In case the location be changed, the commissioner shall 
10.31 	endorse the change of location on the license.
10.32 	(e) Upon the filing of such application, and the payment of the fee, the commissioner 
10.33 	shall issue a license to the applicant to engage in the business of a sales finance company 
10.34 	under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which 
11.1 	shall expire the last day of June next following the date of its issuance. The license shall 
11.2 	not be transferable or assignable. No licensee shall transact any business provided for by 
11.3 	sections 53C.01 to 53C.14 under any other name.
11.4 	(f) Section 58A.04, subdivisions 2 and 3, apply to this section.

11.5 	Sec. 16. Minnesota Statutes 2020, section 55.10, subdivision 1, is amended to read:
11.6 		Subdivision 1.Permitting access, removal, or delivery. When a safe deposit box shall 
11.7 	have been hired from any licensed safe deposit company in the name of two or more persons, 
11.8 	including husband and wife a married couple, with the right of access being given to either, 
11.9 	or with access to either or the survivor or survivors of the person, or property is held for 
11.10 	safekeeping by any licensed safe deposit company for two or more persons, including 
11.11 	husband and wife a married couple, with the right of delivery being given to either, or with 
11.12 	the right of delivery to either of the survivor or survivors of these persons, any one or more 
11.13 	of these persons, whether the other or others be living or not, shall have the right of access 
11.14 	to the safe deposit box and the right to remove all, or any part, of the contents thereof, or 
11.15 	to have delivered to all or any one of them, or any part of the valuable personal property so 
11.16 	held for safekeeping; and, in case of this access, removal, or delivery, the safe deposit 
11.17 	company shall be exempt from any liability for permitting the access, removal, or delivery.

11.18 	Sec. 17. Minnesota Statutes 2020, section 56.02, is amended to read:
11.19 	56.02 APPLICATION FEE.
11.20 	(a) Application for license shall be in writing, under oath, and in the form prescribed by 
11.21 	the commissioner, and contain the name and the address, both of the residence and place 
11.22 	of business, of the applicant and, if the applicant is a copartnership or association, of every 
11.23 	member thereof, and if a corporation, of each officer and director thereof; also the county 
11.24 	and municipality, with street and number, if any, where the business is to be conducted, and 
11.25 	such further information as the commissioner may require. The applicant at the time of 
11.26 	making application, shall pay to the commissioner the sum of $500 as a fee for investigating 
11.27 	the application, and the additional sum of $250 as an annual license fee for a period 
11.28 	terminating on the last day of the current calendar year. In addition to the annual license 
11.29 	fee, every licensee hereunder shall pay to the commissioner the actual costs of each 
11.30 	examination, as provided for in section 56.10. All moneys money collected by the 
11.31 	commissioner under this chapter shall be turned over to the commissioner of management 
11.32 	and budget and credited by the commissioner of management and budget to the general 
12.1 	fund of the state deposited in the financial institutions account under section 46.131, 
12.2 	subdivision 11.
12.3 	(b) Every applicant shall also prove, in form satisfactory to the commissioner, that the 
12.4 	applicant has available for the operation of the business at the location specified in the 
12.5 	application, liquid assets of at least $50,000.
12.6 	(c) Section 58A.04, subdivisions 2 and 3, apply to this section.

12.7 	Sec. 18. Minnesota Statutes 2020, section 60A.031, subdivision 6, is amended to read:
12.8 		Subd. 6.Penalty. (a) Notwithstanding section 72A.05, any person who violates or aids 
12.9 	and abets any violation of a written order issued pursuant to this section may be fined not 
12.10 	more than $10,000 for each day the violation continues for each violation of the order and 
12.11 	the money so recovered shall be paid into the general fund.
12.12 	(b) For conduct prohibited under chapters 60A to 79, multiple violations of an identical 
12.13 	or substantially similar law, rule, or order shall be considered a single violation under this 
12.14 	section and section 45.027. This paragraph does not apply to willful violations by the insurer. 
12.15 	This paragraph does not apply to violations that the insurer has not taken corrective action 
12.16 	for and that:
12.17 	(1) cause financial harm to the policyholder;
12.18 	(2) constitute an unfair method of competition; or
12.19 	(3) constitute an unfair or deceptive act or practice.
12.20 	(c) For any applicable penalty imposed by the commissioner under this section, the 
12.21 	commissioner must consider whether corrective action for the consumer was taken promptly 
12.22 	after a violation was discovered or the violation was not part of a pattern or practice, and 
12.23 	shall reduce or eliminate the penalty accordingly.
12.24 	(d) This subdivision does not apply if a different penalty is specified under law.

12.25 	Sec. 19. Minnesota Statutes 2020, section 60A.031, is amended by adding a subdivision 
12.26 	to read:
12.27 		Subd. 10.Limitation of enforcement actions or administrative proceedings. An 
12.28 	enforcement action or administrative proceeding brought by the commissioner against a 
12.29 	licensee who violates any law, rule, or order related to the duties and responsibilities entrusted 
12.30 	to the commissioner in chapters 60A to 79, including without limitation the issuance of an 
12.31 	order pursuant to chapters 60A to 79, must be commenced within nine years of the date the 
13.1 	violation occurs unless the violation arises out of a contract that remains in force, in which 
13.2 	case the action or administrative proceeding must be commenced within two years of the 
13.3 	date of the discovery of the violation. If the licensee attempts to conceal a violation, an 
13.4 	enforcement action or administrative proceeding must be brought by the commissioner 
13.5 	within nine years of discovery of the violation by the commissioner.

13.6 	Sec. 20. Minnesota Statutes 2020, section 60A.031, is amended by adding a subdivision 
13.7 	to read:
13.8 		Subd. 11.Multistate examinations. If the commissioner elects to participate in an 
13.9 	examination of a licensee that involves multiple states, the commissioner is prohibited from 
13.10 	commencing, undertaking, or continuing an examination under this section against the 
13.11 	subject examinee related to the same alleged conduct, including without limitation incurring 
13.12 	or charging any examination costs, unless and until the multistate examination is complete 
13.13 	or Minnesota has formally withdrawn from that examination. With respect to any completed 
13.14 	multistate examination that Minnesota elected to participate in, the commissioner is prohibited 
13.15 	from taking separate action against a licensee that was subject to the multistate examination 
13.16 	unless the commissioner follows the procedures set forth in this section and section 60A.033, 
13.17 	as applicable.

13.18 	EFFECTIVE DATE. This section is effective August 1, 2022, and applies to 
13.19 	examinations and investigations initiated on or after that date.

13.20 	Sec. 21. Minnesota Statutes 2020, section 60A.033, subdivision 8, is amended to read:
13.21 		Subd. 8.Costs. All bills for examination costs being charged to an insurance company 
13.22 	pursuant to subdivision 5 or section 60A.031, subdivision 3, paragraph (c), must:
13.23 	(1) be itemized and, with respect to examiner billings, contain activity detail on a quarterly 
13.24 	hourly basis by an individual examiner and disclose the applicable hourly billing rates, 
13.25 	together with per-charge detail for related travel or other expenses; and
13.26 	(2) provide a due date no less than 30 60 days from receipt of the bill.

13.27 	EFFECTIVE DATE. This section is effective July 1, 2022.

13.28 	Sec. 22. Minnesota Statutes 2020, section 60A.033, subdivision 9, is amended to read:
13.29 		Subd. 9.Completion of examination. An examination under section 60A.031 must not 
13.30 	exceed 18 months from the date the commissioner receives the insurance company's first 
13.31 	submission pursuant to a scheduling order, unless:
14.1 	(1) the commissioner determines that there has been a material lack of cooperation by 
14.2 	the insurance company and advises the company in writing of the specific instances 
14.3 	demonstrating a lack of cooperation;
14.4 	(2) the examination is a multistate examination; or
14.5 	(3) the commissioner determines that additional time is necessary to complete the 
14.6 	examination and the commissioner notifies the insurance company in writing of the reasons 
14.7 	why the examination requires additional time.

14.8 	EFFECTIVE DATE. This section is effective July 1, 2022.

14.9 	Sec. 23. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision 
14.10 	to read:
14.11 		Subd. 11.Informal disposition. (a) The commissioner must make an attempt to 
14.12 	informally resolve any alleged violations of law identified during the examination or 
14.13 	investigation. An attempt to informally resolve a violation may consist of a consent order, 
14.14 	nonpublic letter of reprimand, or other informal resolution or disposition.
14.15 	(b) The terms of a consent order or other informal disposition that prescribes compliance 
14.16 	requirements must be consistent with the requirements of Minnesota law.

14.17 	EFFECTIVE DATE. This section is effective July 1, 2022.

14.18 	Sec. 24. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision 
14.19 	to read:
14.20 		Subd. 12.Report to the legislature. Each year by February 1, the commissioner must 
14.21 	report the following information to the chairs and ranking minority members of the house 
14.22 	of representatives and senate committees having jurisdiction over commerce:
14.23 	(1) a listing of the number of pending market conduct exams and the year the exams 
14.24 	were commenced;
14.25 	(2) the number of exams closed during the prior year and the current total of costs charged 
14.26 	to the companies for each exam;
14.27 	(3) whether the exam is being conducted, in whole or in part, by third-party examiners; 
14.28 	and
14.29 	(4) other information that the chairs or ranking minority members may reasonably 
14.30 	request, subject to the limitations of section 60A.031, subdivision 4, paragraph (f).

15.1 	EFFECTIVE DATE. This section is effective July 1, 2022.

15.2 	Sec. 25. Minnesota Statutes 2020, section 60A.954, subdivision 1, is amended to read:
15.3 		Subdivision 1.Establishment. An insurer shall institute, implement, and maintain an 
15.4 	antifraud plan. For the purpose of this section, the term insurer does not include reinsurers, 
15.5 	the Workers' Compensation Reinsurance Association, self-insurers, and excess insurers. 
15.6 	Within 30 days after instituting or materially modifying an antifraud plan, the insurer shall 
15.7 	notify the commissioner in writing. The notice must include the name of the person 
15.8 	responsible for administering the plan. An antifraud plan shall establish procedures to:
15.9 	(1) prevent insurance fraud, including: internal fraud involving the insurer's officers, 
15.10 	employees, or agents; fraud resulting from misrepresentations on applications for insurance; 
15.11 	and claims fraud;
15.12 	(2) report insurance fraud to appropriate law enforcement authorities; and
15.13 	(3) cooperate with the prosecution of insurance fraud cases.

15.14 	Sec. 26. [60B.335] FEDERAL HOME LOAN BANK RIGHTS; COLLATERAL 
15.15 	PLEDGED BY INSURER-MEMBERS.
15.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
15.17 	the meanings given.
15.18 	(b) "Federal home loan bank" means a federal home loan bank established under the 
15.19 	federal Home Loan Bank Act, United States Code, title 12, section 1421 et seq.
15.20 	(c) "Insurer-member" means an insurer that is a member of a federal home loan bank.
15.21 		Subd. 2.Certain rights provided. (a) Notwithstanding any law to the contrary, after 
15.22 	the seventh day following the filing of a delinquency proceeding, a federal home loan bank 
15.23 	must not be stayed or prohibited from exercising the federal home loan bank's rights regarding 
15.24 	collateral pledged by an insurer-member.
15.25 	(b) If a federal home loan bank exercises rights regarding collateral pledged by an 
15.26 	insurer-member subject to a delinquency proceeding, the federal home loan bank must 
15.27 	repurchase any outstanding capital stock that is in excess of the amount of federal home 
15.28 	loan bank stock that the insurer-member is required to hold as a minimum investment, to 
15.29 	the extent the federal home loan bank determines in good faith that the repurchase is: (1) 
15.30 	permissible under applicable laws, regulations, regulatory obligations, and the federal home 
16.1 	loan bank's capital plan; and (2) consistent with the federal home loan bank's current capital 
16.2 	stock practices applicable to the federal home loan bank's entire membership.
16.3 		Subd. 3.Process and timeline required. Following the appointment of a receiver for 
16.4 	an insurer-member, the federal home loan bank must, within ten business days after the 
16.5 	date a request is received from the receiver, provide a process and establish a timeline for:
16.6 	(1) release of collateral that exceeds the amount required to support secured obligations 
16.7 	remaining after any repayment of loans, as determined in accordance with the applicable 
16.8 	agreements between the federal home loan bank and the insurer-member;
16.9 	(2) release of any of the insurer-member's collateral remaining in the federal home loan 
16.10 	bank's possession following repayment in full of the insurer-member's outstanding secured 
16.11 	obligations;
16.12 	(3) payment of fees owed by the insurer-member and the operation of the 
16.13 	insurer-member's deposits and other accounts with the federal home loan bank; and
16.14 	(4) possible redemption or repurchase of federal home loan bank stock or excess stock 
16.15 	of any class that an insurer-member is required to own.
16.16 		Subd. 4.Options; renew or restructure. Upon request from a receiver, the federal 
16.17 	home loan bank must provide the options available for an insurer-member subject to a 
16.18 	delinquency proceeding to renew or restructure a loan to defer associated prepayment fees, 
16.19 	subject to (1) market conditions, (2) the terms of any loans outstanding to the insurer-member, 
16.20 	(3) the federal home loan bank's applicable policies, and (4) the federal home loan bank's 
16.21 	compliance with federal laws and regulations.
16.22 		Subd. 5.Void transfers prohibited. (a) Notwithstanding any law to the contrary, the 
16.23 	receiver for an insurer-member is prohibited from voiding any transfer of, or any obligation 
16.24 	to transfer, money or any other property arising under or in connection with: (1) any federal 
16.25 	home loan bank security agreement; (2) any pledge, security, collateral, or guarantee 
16.26 	agreement; or (3) any other similar arrangement or credit enhancement relating to a federal 
16.27 	home loan bank security agreement made in the ordinary course of business and in 
16.28 	compliance with the applicable federal home loan bank agreement.
16.29 	(b) A transfer may be voided under this section if the transfer was made with intent to 
16.30 	hinder, delay, or defraud the insurer-member, the receiver for the insurer-member, or existing 
16.31 	or future creditors.
17.1 	(c) This section does not affect a receiver's rights regarding advances to an 
17.2 	insurer-member in delinquency proceedings pursuant to Code of Federal Regulations, title 
17.3 	12, part 1266.4.

17.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
17.5 	applies to delinquency proceedings filed on or after that date.

17.6 	Sec. 27. Minnesota Statutes 2020, section 65B.84, subdivision 1, is amended to read:
17.7 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) The 
17.8 	commissioner of commerce shall:
17.9 	(1) develop and sponsor the implementation of statewide plans, programs, and strategies 
17.10 	to combat automobile theft, improve the administration of the automobile theft laws, and 
17.11 	provide a forum for identification of critical problems for those persons dealing with 
17.12 	automobile theft;
17.13 	(2) coordinate the development, adoption, and implementation of plans, programs, and 
17.14 	strategies relating to interagency and intergovernmental cooperation with respect to 
17.15 	automobile theft enforcement;
17.16 	(3) annually audit the plans and programs that have been funded in whole or in part to 
17.17 	evaluate the effectiveness of the plans and programs and withdraw funding should the 
17.18 	commissioner determine that a plan or program is ineffective or is no longer in need of 
17.19 	further financial support from the fund;
17.20 	(4) develop a plan of operation including:
17.21 	(i) an assessment of the scope of the problem of automobile theft, including areas of the 
17.22 	state where the problem is greatest;
17.23 	(ii) an analysis of various methods of combating the problem of automobile theft;
17.24 	(iii) a plan for providing financial support to combat automobile theft;
17.25 	(iv) a plan for eliminating car hijacking; and
17.26 	(v) an estimate of the funds required to implement the plan; and
17.27 	(5) distribute money, in consultation with the commissioner of public safety, pursuant 
17.28 	to subdivision 3 from the automobile theft prevention special revenue account for automobile 
17.29 	theft prevention activities, including:
17.30 	(i) paying the administrative costs of the program;
18.1 	(ii) providing financial support to the State Patrol and local law enforcement agencies 
18.2 	for automobile theft enforcement teams;
18.3 	(iii) providing financial support to state or local law enforcement agencies for programs 
18.4 	designed to reduce the incidence of automobile theft and for improved equipment and 
18.5 	techniques for responding to automobile thefts;
18.6 	(iv) providing financial support to local prosecutors for programs designed to reduce 
18.7 	the incidence of automobile theft;
18.8 	(v) providing financial support to judicial agencies for programs designed to reduce the 
18.9 	incidence of automobile theft;
18.10 	(vi) providing financial support for neighborhood or community organizations or business 
18.11 	organizations for programs designed to reduce the incidence of automobile theft and to 
18.12 	educate people about the common methods of automobile theft, the models of automobiles 
18.13 	most likely to be stolen, and the times and places automobile theft is most likely to occur; 
18.14 	and
18.15 	(vii) providing financial support for automobile theft educational and training programs 
18.16 	for state and local law enforcement officials, driver and vehicle services exam and inspections 
18.17 	staff, and members of the judiciary.
18.18 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
18.19 	money in the fund for the program's administrative and operating costs. The commissioner 
18.20 	is annually appropriated and must distribute the amount of the proceeds credited to the 
18.21 	automobile theft prevention special revenue account each year, less the transfer of $1,300,000 
18.22 	each year to the insurance fraud prevention account described in section 297I.11, subdivision 
18.23 	2.
18.24 	(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances 
18.25 	in the auto theft prevention account to the insurance fraud prevention account under section 
18.26 	45.0135, subdivision 6.
18.27 	(d) The commissioner must establish a library of equipment to combat automobile-related 
18.28 	theft offenses. The equipment must be available to all law enforcement agencies upon 
18.29 	request to support law enforcement agency efforts to combat automobile theft.

18.30 	Sec. 28. Minnesota Statutes 2020, section 65B.84, subdivision 2, is amended to read:
18.31 		Subd. 2.Annual report. By January 15 of September 30 each year, the commissioner 
18.32 	shall report to the governor and the chairs and ranking minority members of the house of 
19.1 	representatives and senate committees having jurisdiction over the Departments of Commerce 
19.2 	and Public Safety on the activities and expenditures in the preceding year.

19.3 	Sec. 29. [72A.071] REBATES.
19.4 		Subdivision 1.Prohibition. Notwithstanding any law to the contrary, insurers and 
19.5 	producers are prohibited from knowingly permitting or offering to make or making any life 
19.6 	insurance policy or annuity, or policy of accident and sickness insurance, or health plan or 
19.7 	other insurance, or agreement as to such contract other than as plainly expressed in the 
19.8 	policy issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, 
19.9 	directly or indirectly, as inducement to such policy, any rebate of premiums payable on the 
19.10 	policy, or any special favor or advantage in the dividends or other benefits thereon, or any 
19.11 	valuable consideration or inducement whatever not specified in the policy; or giving, or 
19.12 	selling, or purchasing or offering to give, sell, or purchase as inducement to such policy or 
19.13 	annuity or in connection therewith, any stocks, bonds or other securities of any company 
19.14 	or other corporation, association or partnership, or any dividends or profits accrued thereon, 
19.15 	or anything of value whatsoever not specified in the policy.
19.16 		Subd. 2.Practices not considered discrimination or rebates. (a) Nothing in subdivision 
19.17 	1, section 72A.20, subdivisions 8 or 9, or section 72A.12, subdivisions 3 or 4, shall be 
19.18 	construed as including within the definition of discrimination or rebates any of the following 
19.19 	practices:
19.20 	(1) in the case of life insurance policies or annuities, paying bonuses to policyholders 
19.21 	or otherwise abating their premiums in whole or in part out of surplus accumulated from 
19.22 	nonparticipating insurance, provided that any such bonuses or abatement of premiums shall 
19.23 	be fair and equitable to policyholders and for the best interests of the company and its 
19.24 	policyholders;
19.25 	(2) in the case of life insurance policies issued on the industrial debit plan, making 
19.26 	allowance to policyholders who have continuously for a specified period made premium 
19.27 	payments directly to an office of the insurer in an amount that fairly represents the saving 
19.28 	in collection expenses;
19.29 	(3) readjusting the rate of premium for a group insurance policy based on the loss or 
19.30 	expense thereunder, at the end of the first or any subsequent policy year of insurance 
19.31 	thereunder, which may be made retroactive only for such policy year;
20.1 	(4) engaging in an arrangement that would not violate United States Code 1972, title 
20.2 	12, section 106, as interpreted by the Board of Governors of the Federal Reserve System, 
20.3 	or United States Code, title 12, section 1464(q); or
20.4 	(5) the offer or provision by insurers or producers, by or through employees, affiliates, 
20.5 	or third-party representatives, of value-added products or services at no or reduced cost 
20.6 	when such products or services are not specified in the policy of insurance if the product 
20.7 	or service relates to the insurance coverage and is designed to satisfy one or more of the 
20.8 	following:
20.9 	(i) provide loss mitigation or loss control;
20.10 	(ii) reduce claim costs or claim settlement costs;
20.11 	(iii) provide education about liability risks or risk of loss to persons or property;
20.12 	(iv) monitor or assess risk, identify sources of risk, or develop strategies for eliminating 
20.13 	or reducing risk;
20.14 	(v) enhance health;
20.15 	(vi) enhance financial wellness through items such as education or financial planning 
20.16 	services;
20.17 	(vii) provide post-loss services;
20.18 	(viii) incent behavioral changes to improve the health or reduce the risk of death or 
20.19 	disability of a customer, a policyholder, potential policyholder, certificate holder, potential 
20.20 	certificate holder, insured, potential insured, or applicant; or
20.21 	(ix) assist in the administration of the employee or retiree benefit insurance coverage.
20.22 	(b) The cost to the insurer or producer offering the product or service to a customer must 
20.23 	be reasonable in comparison to that customer's premiums or insurance coverage for the 
20.24 	policy class.
20.25 	(c) If the insurer or producer is providing the product or service offered, the insurer or 
20.26 	producer must ensure that upon request the customer is provided with contact information 
20.27 	to assist the customer with questions regarding the product or service.
20.28 	(d) The availability of the value-added product or service must be based on documented 
20.29 	objective criteria and offered in a manner that is not unfairly discriminatory. The documented 
20.30 	criteria must be maintained by the insurer or producer and produced upon request of the 
20.31 	commissioner.
21.1 	(e) If an insurer or producer does not have sufficient evidence but has a good-faith belief 
21.2 	that the product or service meets the criteria of paragraph (a), clause (5), items (i) through 
21.3 	(ix), the insurer or producer may provide the product or service in a manner that is not 
21.4 	unfairly discriminatory as part of a pilot or testing program for no more than one year. An 
21.5 	insurer or producer must notify the commissioner of such a pilot or testing program offered 
21.6 	to consumers in this state prior to launching and may proceed with the program unless the 
21.7 	commissioner objects within 45 days of notice.
21.8 		Subd. 3.Exceptions. (a) An insurer or producer may:
21.9 	(1) offer or give noncash gifts, items, or services, including meals to or charitable 
21.10 	donations on behalf of a customer, in connection with the marketing, sale, purchase, or 
21.11 	retention of contracts of insurance, as long as the cost does not exceed the lesser of five 
21.12 	percent of the current or projected policyholder premium or $250 per policy year per term. 
21.13 	The offer must be made in a manner that is not unfairly discriminatory. The customer may 
21.14 	not be required to purchase, continue to purchase, or renew a policy in exchange for the 
21.15 	gift, item, or service;
21.16 	(2) offer or give noncash gifts, items, or services including meals to or charitable 
21.17 	donations on behalf of a customer, to commercial or institutional customers in connection 
21.18 	with the marketing, sale, purchase, or retention of contracts of insurance, as long as the cost 
21.19 	is reasonable in comparison to the premium or proposed premium and the cost of the gift 
21.20 	or service is not included in any amounts charged to another person or entity. The offer 
21.21 	must be made in a manner that is not unfairly discriminatory. The customer may not be 
21.22 	required to purchase, continue to purchase, or renew a policy in exchange for the gift, item, 
21.23 	or service; and
21.24 	(3) conduct raffles or drawings to the extent permitted by state law, as long as there is 
21.25 	no financial cost to entrants to participate, the drawing or raffle does not obligate participants 
21.26 	to purchase insurance, the prizes do not exceed the lesser of five percent of the current or 
21.27 	projected policyholder premium or $500, and the drawing or raffle is open to the public. 
21.28 	The raffle or drawing must be offered in a manner that is not unfairly discriminatory. The 
21.29 	customer may not be required to purchase, continue to purchase, or renew a policy in 
21.30 	exchange for the gift, item, or service.
21.31 	(b) An insurer, producer, or representative of either may not offer or provide insurance 
21.32 	at no cost as an inducement to the purchase of another policy.

21.33 	EFFECTIVE DATE. This section is effective January 1, 2023.

22.1 	Sec. 30. Minnesota Statutes 2020, section 72A.12, subdivision 4, is amended to read:
22.2 		Subd. 4.Discrimination; rebates. (a) No life insurance company doing business in this 
22.3 	state shall make or permit any distinction or discrimination in favor of individuals between 
22.4 	insurants of the same class and equal expectation of life in the amount or payment of 
22.5 	premiums or rates charged for policies of life or endowment insurance, or in the dividends 
22.6 	or other benefits payable thereon, or in any other of the terms and conditions of the contracts 
22.7 	it makes; nor shall any such company or agent thereof make any contract of insurance or 
22.8 	agreement as to such contract other than as plainly expressed in the policy issued thereon; 
22.9 	nor shall any such company or any officer, agent, solicitor, or representative thereof pay, 
22.10 	allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to insurance, 
22.11 	any rebate of premium payable on the policy, or any special favor or advantage in the 
22.12 	dividends or other benefits to accrue thereon or any paid employment or contract for services 
22.13 	of any kind, or any valuable consideration or inducement whatever not specified in the 
22.14 	policy contract of insurance.
22.15 	Any violation of the provisions of this subdivision shall be a misdemeanor and punishable 
22.16 	as such.
22.17 	(b) A promotional advertising item of $25 or less or a gift of $25 or less per year is not 
22.18 	a rebate if the receipt of the item or gift is not conditioned upon purchase of an insurance 
22.19 	policy or product.

22.20 	EFFECTIVE DATE. This section is effective January 1, 2023.

22.21 	Sec. 31. Minnesota Statutes 2020, section 72A.20, subdivision 11, is amended to read:
22.22 		Subd. 11.Application to certain sections. Violating any provision of the following 
22.23 	sections of this chapter not set forth in this section shall constitute an unfair method of 
22.24 	competition and an unfair and deceptive act or practice: sections 72A.12, subdivisions 2, 
22.25 	3, and 4, 72A.16, subdivision 2, 72A.03 and 72A.04, 72A.08, subdivision 1, as modified 
22.26 	by sections 72A.08, subdivision 4, 72A.071,72A.201, and sections72A.49 to 72A.505.

22.27 	EFFECTIVE DATE. This section is effective January 1, 2023.

22.28 	Sec. 32. Minnesota Statutes 2020, section 72A.328, subdivision 1, is amended to read:
22.29 		Subdivision 1.Definitions. (a) For purposes of this section the following terms have 
22.30 	the meanings given.
22.31 	(b) "Affinity program" means a an organization or group formed around a common 
22.32 	interest or specified purpose, or a group of individuals who are members of an entity that 
23.1 	offers individuals benefits based on their membership in that entity. Affinity program does 
23.2 	not include an entity that obtains group insurance, as defined in section 60A.02, subdivision 
23.3 	28, or risk retention groups as defined in section 60E.02, subdivision 12.
23.4 	(c) "Policy" means an individually underwritten policy of private passenger vehicle 
23.5 	insurance, as defined in section 65B.001, subdivision 2, an individually underwritten policy 
23.6 	of homeowner's insurance, as defined in section 65A.27, subdivision 4, or an individually 
23.7 	underwritten policy issued under section 60A.06, subdivision 1, clause (10).

23.8 	Sec. 33. Minnesota Statutes 2020, section 72A.328, subdivision 2, is amended to read:
23.9 		Subd. 2.Discount. An insurance company may offer an individual a discount or other 
23.10 	benefit relating to a policy based on the individual's membership in an affinity program if:
23.11 	(1) the benefit or discount is based on an actuarial justification calculated in accordance 
23.12 	with section 70A.04; and
23.13 	(2) the insurance company offers the benefit or discount to all members of the affinity 
23.14 	program are eligible for the discount or benefit.

23.15 	Sec. 34. Minnesota Statutes 2020, section 80A.61, is amended to read:
23.16 	80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT, 
23.17 	FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER 
23.18 	REPRESENTATIVE.
23.19 	(a) Application for initial registration by broker-dealer, agent, investment adviser, 
23.20 	or investment adviser representative. A person shall register as a broker-dealer, agent, 
23.21 	investment adviser, or investment adviser representative by filing an application and a 
23.22 	consent to service of process complying with section 80A.88, and paying the fee specified 
23.23 	in section 80A.65 and any reasonable fees charged by the designee of the administrator for 
23.24 	processing the filing. The application must contain:
23.25 	(1) the information or record required for the filing of a uniform application; and
23.26 	(2) upon request by the administrator, any other financial or other information or record 
23.27 	that the administrator determines is appropriate.
23.28 	(b) Amendment. If the information or record contained in an application filed under 
23.29 	subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant 
23.30 	shall promptly file a correcting amendment.
24.1 	(c) Effectiveness of registration. If an order is not in effect and a proceeding is not 
24.2 	pending under section 80A.67, registration becomes effective at noon on the 45th day after 
24.3 	a completed application is filed, unless the registration is denied. A rule adopted or order 
24.4 	issued under this chapter may set an earlier effective date or may defer the effective date 
24.5 	until noon on the 45th day after the filing of any amendment completing the application.
24.6 	(d) Registration renewal. A registration is effective until midnight on December 31 of 
24.7 	the year for which the application for registration is filed. Unless an order is in effect under 
24.8 	section 80A.67, a registration may be automatically renewed each year by filing such records 
24.9 	as are required by rule adopted or order issued under this chapter, by paying the fee specified 
24.10 	in section 80A.65, and by paying costs charged by the designee of the administrator for 
24.11 	processing the filings.
24.12 	(e) Additional conditions or waivers. A rule adopted or order issued under this chapter 
24.13 	may impose such other conditions, not inconsistent with the National Securities Markets 
24.14 	Improvement Act of 1996. An order issued under this chapter may waive, in whole or in 
24.15 	part, specific requirements in connection with registration as are in the public interest and 
24.16 	for the protection of investors.
24.17 	(f) Funding portal registration. A funding portal that has its principal place of business 
24.18 	in the state of Minnesota shall register with the state of Minnesota by filing with the 
24.19 	administrator a copy of the information or record required for the filing of an application 
24.20 	for registration as a funding portal in the manner established by the Securities and Exchange 
24.21 	Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with 
24.22 	any rule adopted or order issued, and any amendments thereto.
24.23 	(g) Application for investment adviser representative registration.
24.24 	(1) The application for initial registration as an investment adviser representative pursuant 
24.25 	to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities 
24.26 	Industry Registration or Transfer) in accordance with the form instructions and by filing 
24.27 	the form U-4 with the IARD. The application for initial registration must also include the 
24.28 	following:
24.29 	(i) proof of compliance by the investment adviser representative with the examination 
24.30 	requirements of:
24.31 	(A) the Uniform Investment Adviser Law Examination (Series 65); or
24.32 	(B) the General Securities Representative Examination (Series 7) and the Uniform 
24.33 	Combined State Law Examination (Series 66);
25.1 	(ii) any other information the administrator may reasonably require.
25.2 	(2) The application for the annual renewal registration as an investment adviser 
25.3 	representative shall be filed with the IARD.
25.4 	(3)(i) The investment adviser representative is under a continuing obligation to update 
25.5 	information required by Form U-4 as changes occur;
25.6 	(ii) An investment adviser representative and the investment adviser must file promptly 
25.7 	with the IARD any amendments to the representative's Form U-4; and
25.8 	(iii) An amendment will be considered to be filed promptly if the amendment is filed 
25.9 	within 30 days of the event that requires the filing of the amendment.
25.10 	(4) An application for initial or renewal of registration is not considered filed for purposes 
25.11 	of section 80A.58 until the required fee and all required submissions have been received 
25.12 	by the administrator.
25.13 	(5) The application for withdrawal of registration as an investment adviser representative 
25.14 	pursuant to section 80A.58 shall be completed by following the instructions on Form U-5 
25.15 	(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5 
25.16 	with the IARD.

25.17 	Sec. 35. Minnesota Statutes 2020, section 80C.05, subdivision 2, is amended to read:
25.18 		Subd. 2.Commissioner's powers. The commissioner shall have power to place such 
25.19 	conditions, limitations, and restrictions on any registration as may be necessary to carry out 
25.20 	the purposes of sections 80C.01 to 80C.22. Upon compliance with the provisions of sections 
25.21 	80C.01 to 80C.22 and other requirements of the commissioner, and if the commissioner 
25.22 	finds no ground for denial of the registration, the commissioner shall register the franchise. 
25.23 	Registration shall be by entry in a book called Register of Franchises, which entry shall 
25.24 	show the franchise registered and for whom registered, and shall specify the conditions, 
25.25 	limitations, and restrictions upon such registration, if any, or shall make proper reference 
25.26 	to a formal order of the commissioner on file showing such conditions, limitations, and 
25.27 	restrictions. The registration shall become effective upon issuance by the commissioner of 
25.28 	an order for registration.

26.1 	Sec. 36. Minnesota Statutes 2020, section 80E.13, is amended to read:
26.2 	80E.13 UNFAIR PRACTICES BY MANUFACTURERS, DISTRIBUTORS, 
26.3 	FACTORY BRANCHES.
26.4 	It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch 
26.5 	to engage in any of the following practices directly or through an entity that it controls or 
26.6 	is controlled by:
26.7 	(a) delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or 
26.8 	accessories in reasonable time and in reasonable quantity relative to the new motor vehicle 
26.9 	dealer's facilities and sales potential in the dealer's relevant market area, after having accepted 
26.10 	an order from a new motor vehicle dealer having a franchise for the retail sale of any new 
26.11 	motor vehicle sold or distributed by the manufacturer or distributor, if the new motor vehicle 
26.12 	or new motor vehicle parts or accessories are publicly advertised as being available for 
26.13 	delivery or actually being delivered. This clause is not violated, however, if the failure is 
26.14 	caused by acts or causes beyond the control of the manufacturer;
26.15 	(b) refuse to disclose to any new motor vehicle dealer handling the same line make, the 
26.16 	manner and mode of distribution of that line make within the relevant market area;
26.17 	(c) obtain money, goods, service, or any other benefit from any other person with whom 
26.18 	the dealer does business, on account of, or in relation to, the transaction between the dealer 
26.19 	and the other person, other than for compensation for services rendered, unless the benefit 
26.20 	is promptly accounted for, and transmitted to, the new motor vehicle dealer;
26.21 	(d) increase prices of new motor vehicles which the new motor vehicle dealer had ordered 
26.22 	for private retail consumers prior to the dealer's receiving the written official price increase 
26.23 	notification. A sales contract signed by a private retail consumer shall constitute evidence 
26.24 	of each order if the vehicle is in fact delivered to that customer. In the event of manufacturer 
26.25 	price reductions, the amount of any reduction received by a dealer shall be passed on to the 
26.26 	private retail consumer by the dealer if the retail price was negotiated on the basis of the 
26.27 	previous higher price to the dealer;
26.28 	(e) offer any refunds or other types of inducements to any new motor vehicle dealer for 
26.29 	the purchase of new motor vehicles of a certain line make without making the same offer 
26.30 	to all other new motor vehicle dealers in the same line make within geographic areas 
26.31 	reasonably determined by the manufacturer;
26.32 	(f) release to any outside party, except under subpoena or in an administrative or judicial 
26.33 	proceeding involving the manufacturer or dealer, any business, financial, or personal 
27.1 	information which may be provided by the dealer to the manufacturer, without the express 
27.2 	written consent of the dealer or unless pertinent to judicial or governmental administrative 
27.3 	proceedings or to arbitration proceedings of any kind;
27.4 	(g) deny any new motor vehicle dealer the right of free association with any other new 
27.5 	motor vehicle dealer for any lawful purpose;
27.6 	(h) unfairly discriminate among its new motor vehicle dealers with respect to warranty 
27.7 	reimbursement or authority granted its new vehicle dealers to make warranty adjustments 
27.8 	with retail customers;
27.9 	(i) compete with a new motor vehicle dealer in the same line make operating under an 
27.10 	agreement or franchise from the same manufacturer, distributor, or factory branch. A 
27.11 	manufacturer, distributor, or factory branch is considered to be competing when it has an 
27.12 	ownership interest, other than a passive interest held for investment purposes, in a dealership 
27.13 	of its line make located within the in this state, or in a dealership of a competing line make 
27.14 	in this state. A manufacturer, distributor, or factory branch shall not, however, be deemed 
27.15 	to be competing when operating a dealership, either temporarily or for a reasonable period, 
27.16 	which is for sale to any qualified independent person at a fair and reasonable price, or when 
27.17 	involved in a bona fide relationship in which an independent person has made a significant 
27.18 	investment subject to loss in the dealership and can reasonably expect to acquire full 
27.19 	ownership and full management and operational control of the dealership within a reasonable 
27.20 	time on reasonable terms and conditions;
27.21 	(j) prevent a new motor vehicle dealer from transferring or assigning a new motor vehicle 
27.22 	dealership to a qualified transferee. There shall be no transfer, assignment of the franchise, 
27.23 	or major change in the executive management of the dealership, except as is otherwise 
27.24 	provided in sections 80E.01 to 80E.17, without consent of the manufacturer, which shall 
27.25 	not be withheld without good cause. In determining whether good cause exists for 
27.26 	withholding consent to a transfer or assignment, the manufacturer, distributor, factory 
27.27 	branch, or importer has the burden of proving that the transferee is a person who is not of 
27.28 	good moral character or does not meet the franchisor's existing and reasonable capital 
27.29 	standards and, considering the volume of sales and service of the new motor vehicle dealer, 
27.30 	reasonable business experience standards in the market area. Denial of the request must be 
27.31 	in writing and delivered to the new motor vehicle dealer within 60 days after the manufacturer 
27.32 	receives the completed application customarily used by the manufacturer, distributor, factory 
27.33 	branch, or importer for dealer appointments. If a denial is not sent within this period, the 
27.34 	manufacturer shall be deemed to have given its consent to the proposed transfer or change. 
27.35 	In the event of a proposed sale or transfer of a franchise, the manufacturer, distributor, 
28.1 	factory branch, or importer shall be permitted to exercise a right of first refusal to acquire 
28.2 	the franchisee's assets or ownership if:
28.3 	(1) the franchise agreement permits the manufacturer, distributor, factory branch, or 
28.4 	importer to exercise a right of first refusal to acquire the franchisee's assets or ownership 
28.5 	in the event of a proposed sale or transfer;
28.6 	(2) the proposed transfer of the dealership or its assets is of more than 50 percent of the 
28.7 	ownership or assets;
28.8 	(3) the manufacturer, distributor, factory branch, or importer notifies the dealer in writing 
28.9 	within 60 days of its receipt of the complete written proposal for the proposed sale or transfer 
28.10 	on forms generally utilized by the manufacturer, distributor, factory branch, or importer for 
28.11 	such purposes and containing the information required therein and all documents and 
28.12 	agreements relating to the proposed sale or transfer;
28.13 	(4) the exercise of the right of first refusal will result in the dealer and dealer's owners 
28.14 	receiving the same or greater consideration with equivalent terms of sale as is provided in 
28.15 	the documents and agreements submitted to the manufacturer, distributor, factory branch, 
28.16 	or importer under clause (3);
28.17 	(5) the proposed change of 50 percent or more of the ownership or of the dealership 
28.18 	assets does not involve the transfer or sale of assets or the transfer or issuance of stock by 
28.19 	the dealer or one or more dealer owners to a family member, including a spouse, child, 
28.20 	stepchild, grandchild, spouse of a child or grandchild, brother, sister, or parent of the dealer 
28.21 	owner; to a manager who has been employed in the dealership for at least four years and is 
28.22 	otherwise qualified as a dealer operator; or to a partnership or corporation owned and 
28.23 	controlled by one or more of such persons; and
28.24 	(6) the manufacturer, distributor, factory branch, or importer agrees to pay the reasonable 
28.25 	expenses, including reasonable attorney fees, which do not exceed the usual customary and 
28.26 	reasonable fees charged for similar work done for other clients incurred by the proposed 
28.27 	new owner and transferee before the manufacturer, distributor, factory branch, or importer 
28.28 	exercises its right of first refusal, in negotiating and implementing the contract for the 
28.29 	proposed change of ownership or transfer of dealership assets. However, payment of such 
28.30 	expenses and attorney fees shall not be required if the dealer has not submitted or caused 
28.31 	to be submitted an accounting of those expenses within 20 days after the dealer's receipt of 
28.32 	the manufacturer, distributor, factory branch, or importer's written request for such an 
28.33 	accounting. The manufacturer, distributor, factory branch, or importer may request such an 
29.1 	accounting before exercising its right of first refusal. The obligation created under this clause 
29.2 	is enforceable by the transferee;
29.3 	(k) threaten to modify or replace or modify or replace a franchise with a succeeding 
29.4 	franchise that would adversely alter the rights or obligations of a new motor vehicle dealer 
29.5 	under an existing franchise or that substantially impairs the sales or service obligations or 
29.6 	investments of the motor vehicle dealer;
29.7 	(l) unreasonably deny the right to acquire factory program vehicles to any dealer holding 
29.8 	a valid franchise from the manufacturer to sell the same line make of vehicles, provided 
29.9 	that the manufacturer may impose reasonable restrictions and limitations on the purchase 
29.10 	or resale of program vehicles to be applied equitably to all of its franchised dealers. For the 
29.11 	purposes of this paragraph, "factory program vehicle" has the meaning given the term in 
29.12 	section 80E.06, subdivision 2;
29.13 	(m) except as provided in paragraph (n), fail or refuse to offer to its same line make 
29.14 	franchised dealers all models manufactured for that line make, other than including alternative 
29.15 	fuel vehicles as defined in section 216C.01, subdivision 1b. Failure to offer a model is not 
29.16 	a violation of this section if the failure is not arbitrary and is due to a lack of manufacturing 
29.17 	capacity, a strike, labor difficulty, or other cause over which the manufacturer, distributor, 
29.18 	or factory branch has no control;
29.19 	(n) require a dealer to pay an extra fee, or remodel, renovate, or recondition the dealer's 
29.20 	existing facilities, or purchase unreasonable advertising displays, training, tools, or other 
29.21 	materials, or to require the dealer to establish exclusive facilities or dedicated personnel as 
29.22 	a prerequisite to receiving a model or a series of vehicles. A manufacturer, distributor, or 
29.23 	factory branch may require a dealer to comply with reasonable requirements for the sale 
29.24 	and service of an alternative fuel vehicle or to serve an alternative fuel vehicle customer;
29.25 	(o) require a dealer by program, incentive provision, or otherwise to adhere to 
29.26 	performance standards that are not applied uniformly to other similarly situated dealers.
29.27 	A performance standard, sales objective, or program for measuring dealership performance 
29.28 	that may have a material effect on a dealer, including the dealer's right to payment under 
29.29 	any incentive or reimbursement program, and the application of the standard or program 
29.30 	by a manufacturer, distributor, or factory branch must be fair, reasonable, equitable, and 
29.31 	based on accurate information. Upon written request by any of its franchised dealers located 
29.32 	within Minnesota, a manufacturer, distributor, or factory branch must provide the method 
29.33 	or formula used by the manufacturer in establishing the sales volumes for receiving a rebate 
29.34 	or incentive and the specific calculations for determining the required sales volumes of the 
30.1 	inquiring dealer and any of the manufacturer's other Minnesota-franchised new motor vehicle 
30.2 	dealers of the same line-make located within 75 miles of the inquiring dealer. Nothing 
30.3 	contained in this section requires a manufacturer, distributor, or factory branch to disclose 
30.4 	confidential business information of any of its franchised dealers or the required numerical 
30.5 	sales volumes that any of its franchised dealers must attain to receive a rebate or incentive. 
30.6 	An inquiring dealer may file a civil action as provided in section 80E.17 without a showing 
30.7 	of injury if a manufacturer, distributor, or factory branch fails to make the disclosure required 
30.8 	by this section.
30.9 	A manufacturer, distributor, or factory branch has the burden of proving that the performance 
30.10 	standard, sales objective, or program for measuring dealership performance is fair, reasonable, 
30.11 	and uniformly applied under this section;
30.12 	(p) assign or change a dealer's area of sales effectiveness arbitrarily or without due regard 
30.13 	to the present pattern of motor vehicle sales and registrations within the dealer's market. 
30.14 	The manufacturer, distributor, or factory branch must provide at least 90 days' notice of the 
30.15 	proposed change. The change may not take effect if the dealer commences a civil action 
30.16 	within the 90 days' notice period to determine whether the manufacturer, distributor, or 
30.17 	factory branch met its obligations under this section. The burden of proof in such an action 
30.18 	shall be on the manufacturer or distributor. In determining at the evidentiary hearing whether 
30.19 	a manufacturer, distributor, or factory branch has assigned or changed the dealer's area of 
30.20 	sales effectiveness or is proposing to assign or change the dealer's area of sales effectiveness 
30.21 	arbitrarily or without due regard to the present pattern of motor vehicle sales and registrations 
30.22 	within the dealer's market, the court may take into consideration the relevant circumstances, 
30.23 	including, but not limited to:
30.24 	(1) the traffic patterns between consumers and the same line-make franchised dealers 
30.25 	of the affected manufacturer, distributor, or factory branch who are located within the 
30.26 	market;
30.27 	(2) the pattern of new vehicle sales and registrations of the affected manufacturer, 
30.28 	distributor, or factory branch within various portions of the area of sales effectiveness and 
30.29 	within the market as a whole;
30.30 	(3) the growth or decline in population, density of population, and new car registrations 
30.31 	in the market;
30.32 	(4) the presence or absence of natural geographical obstacles or boundaries, such as 
30.33 	rivers;
31.1 	(5) the proximity of census tracts or other geographic units used by the affected 
31.2 	manufacturer, factory branch, distributor, or distributor branch in determining the same 
31.3 	line-make dealers' respective areas of sales effectiveness; and
31.4 	(6) the reasonableness of the change or proposed change to the dealer's area of sales 
31.5 	effectiveness, considering the benefits and harm to the petitioning dealer, other same 
31.6 	line-make dealers, and the manufacturer, distributor, or factory branch;
31.7 	(q) to charge back, withhold payment, deny vehicle allocation, or take any other adverse 
31.8 	action against a dealer when a new vehicle sold by the dealer has been exported to a foreign 
31.9 	country, unless the manufacturer, distributor, or factory branch can show that at the time 
31.10 	of sale, the customer's information was listed on a known or suspected exporter list made 
31.11 	available to the dealer, or the dealer knew or reasonably should have known of the purchaser's 
31.12 	intention to export or resell the motor vehicle in violation of the manufacturer's export 
31.13 	policy. There is a rebuttable presumption that the dealer did not know or should not have 
31.14 	reasonably known that the vehicle would be exported or resold in violation of the 
31.15 	manufacturer's export policy if the vehicle is titled and registered in any state of the United 
31.16 	States;
31.17 	(r) to implement a charge back or withhold payment to a dealer that is solely due to an 
31.18 	unreasonable delay by the registrar, as defined in section 168.002, subdivision 29, in the 
31.19 	transfer or registration of a new motor vehicle. The dealer must give the manufacturer notice 
31.20 	of the state's delay in writing. Within 30 days of any notice of a charge back, withholding 
31.21 	of payments, or denial of a claim, the dealer must transmit to the manufacturer: (1) 
31.22 	documentation to demonstrate the vehicle sale and delivery as reported; and (2) a written 
31.23 	attestation signed by the dealer operator or general manager stating that the delay is 
31.24 	attributable to the state. This clause expires on June 30, 2022; or
31.25 	(s) to require a dealer or prospective dealer by program, incentive provision, or otherwise 
31.26 	to construct improvements to its or a predecessor's facilities or to install new signs or other 
31.27 	franchisor image elements that replace or substantially alter improvements, signs, or 
31.28 	franchisor image elements completed within the preceding ten years that were required and 
31.29 	approved by the manufacturer, distributor, or factory branch, including any such 
31.30 	improvements, signs, or franchisor image elements that were required as a condition of the 
31.31 	dealer or predecessor dealer receiving an incentive or other compensation from the 
31.32 	manufacturer, distributor, or factory branch.
31.33 	This paragraph shall not apply to a program or agreement that provides lump sum payments 
31.34 	to assist dealers in making facility improvements or to pay for signs or franchisor image 
32.1 	elements when such payments are not dependent on the dealer selling or purchasing specific 
32.2 	numbers of new vehicles and shall not apply to a program that is in effect with more than 
32.3 	one Minnesota dealer on August 1, 2018, nor to any renewal of such program, nor to a 
32.4 	modification that is not a substantial modification of a material term or condition of such 
32.5 	program.

32.6 	Sec. 37. [214.035] LICENSING DISQUALIFICATIONS; PRELIMINARY 
32.7 	APPLICATIONS; REPORTS.
32.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
32.9 	the meanings given.
32.10 	(b) "Conviction" has the meaning given in section 609.02, subdivision 5.
32.11 	(c) "Criminal record" means a record of an arrest, prosecution, criminal proceeding, or 
32.12 	conviction.
32.13 	(d) "State licensor" or "licensor" means a state agency or examining and licensing board 
32.14 	that issues an occupational or professional license, registration, or certificate and considers 
32.15 	before issuing the license, registration, or certificate any criminal record or conviction of 
32.16 	an applicant that may make an applicant ineligible to receive the license, registration, or 
32.17 	certificate.
32.18 		Subd. 2.Scope. (a) This section does not apply to a license, registration, or certificate 
32.19 	issued by a state licensor if the license, registration, or certificate does not require an applicant 
32.20 	to report to the state licensor as part of the application process the applicant's criminal record 
32.21 	or does not require an applicant to obtain a criminal background check or study as part of 
32.22 	the application process to obtain the license, registration, or certificate.
32.23 	(b) This section does not apply to a license, registration, or certificate issued by the 
32.24 	Professional Educator Licensing and Standards Board, the Department of Health, Department 
32.25 	of Human Services, or any health-related licensing board, as defined in section 214.01, 
32.26 	subdivision 2.
32.27 	(c) The preliminary application process described under this section may only be utilized 
32.28 	by an individual who has a criminal record.
32.29 		Subd. 3.Preliminary applications. (a) Notwithstanding any law to the contrary, all 
32.30 	state licensors shall permit an individual to submit a preliminary application for a 
32.31 	determination pursuant to this section as to whether a criminal record or conviction that 
32.32 	may be considered by the state licensor under state law would make the individual ineligible 
33.1 	to receive an occupational or professional license, registration, or certificate issued by the 
33.2 	state licensor.
33.3 	(b) An applicant shall submit a preliminary application and any other supporting 
33.4 	documents to the appropriate state licensor in a form and manner approved by the licensor. 
33.5 	The state licensor may require that the applicant provide information about the applicant's 
33.6 	criminal record in the form and manner approved by the licensor.
33.7 	(c) A state licensor may charge a fee to cover any expenses incurred in connection with 
33.8 	processing a preliminary application, provided the fee does not exceed the actual cost to 
33.9 	the state licensor of processing the application or the initial fee for the applicable license, 
33.10 	registration, or certificate. If the applicant subsequently applies for the license, registration, 
33.11 	or certificate, the amount of the preliminary application fee paid by the applicant must be 
33.12 	credited toward the applicant's initial fee for the license, registration, or certificate. An 
33.13 	applicant may request a waiver of this fee. A fee collected under this paragraph for the 
33.14 	expenses incurred by the state licensor shall be deposited in the fund in the state treasury 
33.15 	in which the state licensor deposits fees collected for issuing occupational or professional 
33.16 	licenses, registrations, or certificates. If the state licensor does not collect a fee for issuing 
33.17 	occupational or professional licenses, registrations, or certificates, any fee collected under 
33.18 	this paragraph shall be deposited pursuant to section 214.06, subdivision 1.
33.19 	(d) Upon receipt of a completed preliminary application and any necessary supporting 
33.20 	documents, the state licensor must determine under state law whether a criminal record or 
33.21 	conviction that may be considered under state law would make the applicant ineligible to 
33.22 	receive a professional or occupational license, registration, or certificate from the licensor. 
33.23 	The state licensor must issue a written decision within 60 days of receiving a completed 
33.24 	preliminary application. If the state licensor determines that a criminal record or conviction 
33.25 	would make the applicant ineligible to receive a professional or occupational license, 
33.26 	registration, or certificate, the written decision must:
33.27 	(1) state all reasons the professional or occupational license, registration, or certificate 
33.28 	would be denied, including the standard used to make the decision; and
33.29 	(2) inform the applicant of any action or additional steps the applicant could take to 
33.30 	qualify for a professional or occupational license, registration, or certificate.
33.31 	(e) If a state licensor determines that no criminal records or convictions would make the 
33.32 	applicant ineligible to receive a professional or occupational license, registration, or 
33.33 	certificate, that decision is binding on the licensor unless the decision is clearly erroneous 
33.34 	under state law or:
34.1 	(1) the applicant is convicted of a crime or commits any other disqualifying act that may 
34.2 	be considered by the state licensor under state law after submission of the preliminary 
34.3 	application;
34.4 	(2) the applicant provided incomplete information in the preliminary application;
34.5 	(3) the applicant provided inaccurate or fraudulent information in the preliminary 
34.6 	application; or
34.7 	(4) changes to state law were enacted after the date the decision was issued, making the 
34.8 	applicant ineligible under state law to receive a license, registration, or certificate.
34.9 	(f) Nothing in this section precludes a licensor from issuing a license, registration, or 
34.10 	certificate to an applicant that includes limitations or conditions on the license, registration, 
34.11 	or certificate based on a criminal conviction or alleged misconduct of the applicant.
34.12 	(g) By August 1 of each year, each state licensor shall submit to the commissioner of 
34.13 	management and budget the number of applicants who submitted preliminary applications 
34.14 	to the licensor in accordance with this section and the number of applicants who subsequently 
34.15 	applied for a license, registration, or certificate for the previous fiscal year. The state licensor 
34.16 	shall also submit the total amount of initial application fees that were not paid by these 
34.17 	applicants pursuant to paragraph (c), or, if the licensor does not collect a fee for issuing a 
34.18 	license, registration, or certificate, the cost of processing the preliminary application fee 
34.19 	that was not covered pursuant to paragraph (c). Each fiscal year, an amount necessary to 
34.20 	pay each state licensor the rest of each initial application fee or the rest of the cost of 
34.21 	processing each preliminary application if an initial application fee was not collected by 
34.22 	the licensor is appropriated from the general fund to the appropriate state licensor.
34.23 		Subd. 4.Reports. (a) By January 15 of each year, every state licensor shall report to the 
34.24 	Department of Employment and Economic Development on:
34.25 	(1) the number of individuals who applied for a professional or occupational license, 
34.26 	registration, or certificate from the licensor;
34.27 	(2) the number of individuals described in clause (1) who were found to be ineligible 
34.28 	due to a criminal record or conviction;
34.29 	(3) the number of individuals who submitted a preliminary application under this section; 
34.30 	and
34.31 	(4) the number of individuals described in clause (3) who were found to be ineligible 
34.32 	due to a criminal record or conviction.
35.1 	(b) On or before February 15 of each year, the commissioner of employment and 
35.2 	economic development shall compile the reports received under paragraph (a) and provide 
35.3 	the compiled reports to the chairs and ranking minority members of the house of 
35.4 	representatives and senate committees and divisions with jurisdiction over employment. 
35.5 	The commissioner of employment and economic development must make the report readily 
35.6 	available on the department's public website.

35.7 	EFFECTIVE DATE. This section is effective July 1, 2023.

35.8 	Sec. 38. Minnesota Statutes 2020, section 239.761, subdivision 3, is amended to read:
35.9 		Subd. 3.Gasoline. (a) Gasoline that is not blended with biofuel must not be contaminated 
35.10 	with water or other impurities and must comply with ASTM specification D4814-11b. 
35.11 	Gasoline that is not blended with biofuel must also comply with the volatility requirements 
35.12 	in Code of Federal Regulations, title 40, part 80 1090.
35.13 	(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, 
35.14 	a person responsible for the product:
35.15 	(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision 
35.16 	4;
35.17 	(2) shall not blend the gasoline with any oxygenate other than biofuel;
35.18 	(3) shall not blend the gasoline with other petroleum products that are not gasoline or 
35.19 	biofuel;
35.20 	(4) shall not blend the gasoline with products commonly and commercially known as 
35.21 	casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural 
35.22 	gasoline; and
35.23 	(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive 
35.24 	designed to replace tetra-ethyl lead, that is registered by the EPA.

35.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.26 	Sec. 39. Minnesota Statutes 2020, section 239.761, subdivision 4, is amended to read:
35.27 		Subd. 4.Gasoline blended with ethanol; general. (a) Gasoline may be blended with 
35.28 	agriculturally derived, denatured ethanol that complies with the requirements of subdivision 
35.29 	5.
35.30 	(b) A gasoline-ethanol blend must:
36.1 	(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part 
36.2 	80 1090;
36.3 	(2) comply with ASTM specification D4814-11b, or the gasoline base stock from which 
36.4 	a gasoline-ethanol blend was produced must comply with ASTM specification D4814-11b; 
36.5 	and
36.6 	(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline, 
36.7 	drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred, 
36.8 	or otherwise removed from a refinery or terminal.

36.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.10 	Sec. 40. Minnesota Statutes 2020, section 239.791, subdivision 2a, is amended to read:
36.11 		Subd. 2a.Federal Clean Air Act waivers; conditions. (a) Before a waiver granted by 
36.12 	the United States Environmental Protection Agency under United States Code, title 42, 
36.13 	section 7545, may alter the minimum content level required by subdivision 1, paragraph 
36.14 	(a), clause (1), item (ii), the waiver must:
36.15 	(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
36.16 	(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal 
36.17 	Regulations, title 40, section 80.27 part 1090.215, paragraph (d) (b), for blends of gasoline 
36.18 	and ethanol up to the maximum percent of denatured ethanol by volume authorized under 
36.19 	the waiver.
36.20 	(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause (1), item 
36.21 	(ii), shall, upon the grant of the federal waiver, be effective the day after the commissioner 
36.22 	of commerce publishes notice in the State Register. In making this determination, the 
36.23 	commissioner shall consider the amount of time required by refiners, retailers, pipeline and 
36.24 	distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the 
36.25 	operational and logistical changes required to supply fuel in compliance with the minimum 
36.26 	biofuel requirement.

36.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.28 	Sec. 41. Minnesota Statutes 2020, section 296A.01, subdivision 23, is amended to read:
36.29 		Subd. 23.Gasoline. (a) "Gasoline" means:
36.30 	(1) all products commonly or commercially known or sold as gasoline regardless of 
36.31 	their classification or uses, except casinghead gasoline, absorption gasoline, condensation 
37.1 	gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761, 
37.2 	subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise 
37.3 	removed from a refinery or terminal; and
37.4 	(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and 
37.5 	commercially used as, a fuel in spark-ignition, internal combustion engines, and that when 
37.6 	tested by the Weights and Measures Division meets the specifications in ASTM specification 
37.7 	D4814-11b.
37.8 	(b) Gasoline that is not blended with ethanol must not be contaminated with water or 
37.9 	other impurities and must comply with both ASTM specification D4814-11b and the volatility 
37.10 	requirements in Code of Federal Regulations, title 40, part 80 1090.
37.11 	(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, 
37.12 	a person responsible for the product:
37.13 	(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision 
37.14 	24;
37.15 	(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally 
37.16 	derived ethanol;
37.17 	(3) must not blend the gasoline with other petroleum products that are not gasoline or 
37.18 	denatured, agriculturally derived ethanol;
37.19 	(4) must not blend the gasoline with products commonly and commercially known as 
37.20 	casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural 
37.21 	gasoline; and
37.22 	(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive 
37.23 	designed to replace tetra-ethyl lead, that is registered by the EPA.

37.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.25 	Sec. 42. Minnesota Statutes 2020, section 325E.21, subdivision 4, is amended to read:
37.26 		Subd. 4.Registration required. (a) Every scrap metal dealer shall register annually 
37.27 	with the commissioner of public safety.
37.28 	(b) The scrap metal dealer shall pay to the commissioner of public safety a $50 annual 
37.29 	fee.

37.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.1 	Sec. 43. REPEALER.
 38.2 	(a) Minnesota Statutes 2020, sections 72A.08; and 72A.20, subdivisions 10 and 15, are 
38.3 	repealed effective January 1, 2023.
38.4 	(b) Minnesota Statutes 2020, section 60A.033, subdivision 3, is repealed.

APPENDIX 

Repealed Minnesota Statutes: H3255-2 

60A.033 SCHEDULING CONFERENCE AND ORDER.
No active language found for: 60A.033.3 

No active language found for: 72A.08 

72A.20 METHODS, ACTS, AND PRACTICES WHICH ARE DEFINED AS UNFAIR OR DECEPTIVE.
No active language found for: 72A.20.10 

No active language found for: 72A.20.15