1.1 	A bill for an act
1.2 	relating to commerce; establishing a biennial budget for Department of Commerce; 
1.3 	modifying various provisions governing insurance; regulating virtual currency 
1.4 	activities; providing for reports relating to retail sales of intermediate blends of 
1.5 	gasoline and biofuel; prohibiting excessive price increases by pharmaceutical 
1.6 	manufacturers; establishing a Prescription Drug Affordability Board; establishing 
1.7 	a student loan advocate position; regulating money transmitters; making technical 
1.8 	changes; establishing penalties; authorizing administrative rulemaking; requiring 
1.9 	reports; appropriating money; transferring money;amending Minnesota Statutes 
1.10 	2022, sections 46.131, subdivision 11; 60A.14, subdivision 1; 62A.152, subdivision 
1.11 	3; 62D.02, by adding a subdivision; 62D.095, subdivisions 2, 3, 4, 5; 62K.10, 
1.12 	subdivision 4; 62Q.19, subdivision 1; 62Q.46, subdivisions 1, 3; 62Q.47; 62Q.81, 
1.13 	subdivision 4, by adding a subdivision; 151.071, subdivisions 1, 2; 239.791, 
1.14 	subdivision 8; 256B.0631, subdivision 1; 256L.03, subdivision 5; Laws 2022, 
1.15 	chapter 93, article 1, section 2, subdivision 5; proposing coding for new law in 
1.16 	Minnesota Statutes, chapters 53B; 58B; 62J; 62Q; 62W; repealing Minnesota 
1.17 	Statutes 2022, sections 53B.01; 53B.02; 53B.03; 53B.04; 53B.05; 53B.06; 53B.07; 
1.18 	53B.08; 53B.09; 53B.10; 53B.11; 53B.12; 53B.13; 53B.14; 53B.15; 53B.16; 
1.19 	53B.17; 53B.18; 53B.19; 53B.20; 53B.21; 53B.22; 53B.23; 53B.24; 53B.25; 
1.20 	53B.26; 53B.27, subdivisions 1, 2, 5, 6, 7.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	APPROPRIATIONS

1.24	Section 1. APPROPRIATIONS.
 	
1.25 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.26 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.27 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.28 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
1.29 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
1.30 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
2.1 	is fiscal years 2024 and 2025. If an appropriation in this act is enacted more than once in 
2.2 	the 2023 legislative session, the appropriation must be given effect only once.

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2024
		2025

2.7	Sec. 2. DEPARTMENT OF COMMERCE

2.8	Subdivision 1.Total Appropriation
 	$
	33,899,000
	$
	34,802,000

2.9	Appropriations by Fund
	
2.10		2024
	2025
	
2.11	General
	31,018,000
	31,894,000
	
2.12	Special Revenue
	2,093,000
	2,093,000
	
2.13
2.14	Workers' 
Compensation Fund
	788,000
	815,000
	
2.15 	The amounts that may be spent for each 
2.16 	purpose are specified in the following 
2.17 	subdivisions.

2.18	Subd. 2.Financial Institutions
 		2,569,000
		2,689,000
	
2.19 	(a) $400,000 each year is for a grant to Prepare 
2.20 	and Prosper to develop, market, evaluate, and 
2.21 	distribute a financial services inclusion 
2.22 	program that (1) assists low-income and 
2.23 	financially underserved populations to build 
2.24 	savings and strengthen credit, and (2) provides 
2.25 	services to assist low-income and financially 
2.26 	underserved populations to become more 
2.27 	financially stable and secure. Any 
2.28 	unencumbered balance remaining at the end 
2.29 	of the first year does not cancel but is available 
2.30 	in the second year.
2.31 	(b) $254,000 each year is to administer the 
2.32 	requirements of Minnesota Statutes, chapter 
2.33 	58B.
3.1 	(c) $197,000 each year is to administer the 
3.2 	requirements of Minnesota Statutes, section 
3.3 	58B.011.

3.4	Subd. 3.Administrative Services
 		10,088,000
		10,114,000
	
3.5 	(a) $353,000 each year is for system 
3.6 	modernization and cybersecurity upgrades for 
3.7 	the unclaimed property program.
3.8 	(b) $586,000 in the first year and $608,000 in 
3.9 	the second year are for additional operations 
3.10 	of the unclaimed property program.
3.11 	(c) $249,000 each year is for the senior safe 
3.12 	fraud prevention program.
3.13 	(d) $568,000 the first year and $537,000 the 
3.14 	second year are for the duties under Minnesota 
3.15 	Statutes, sections 62J.841 to 64J.845. The base 
3.16 	for this appropriation is $500,000 in fiscal year 
3.17 	2026 and each year thereafter.
3.18 	(e) $150,000 each year are for a grant to 
3.19 	Exodus Lending to expand program and 
3.20 	operational capacity to help individuals reach 
3.21 	financial stability through small dollar 
3.22 	consumer loans, including through resolution 
3.23 	of consumer short-term loans carrying interest 
3.24 	rates grater than 36 percent. This is a onetime 
3.25 	appropriation and is available until June 30, 
3.26 	2027.
3.27 	(f) $200,000 in fiscal year 2024 is appropriated 
3.28 	to the commissioner of commerce for a grant 
3.29 	to Exodus Lending to assist the development 
3.30 	of a character-based small dollar loan lending 
3.31 	program. Character-based lending is the 
3.32 	practice of issuing loans based on the 
3.33 	borrower's involvement in and ties to 
3.34 	community-based organizations that provide 
4.1 	client services, such as financial coaching. 
4.2 	This is a onetime appropriation and is 
4.3 	available until June 30, 2027.
4.4 	Loans issued under the program must be (1) 
4.5 	interest- and fee-free, and (2) made to 
4.6 	Minnesotans facing significant barriers, 
4.7 	including banking history, credit history and 
4.8 	credit score requirements, scarcity of bank 
4.9 	branches in lower-income communities and 
4.10 	communities of color, and low or irregular 
4.11 	income flows, to mainstream financial 
4.12 	products. Mainstream financial products are 
4.13 	products provided most commonly by 
4.14 	regulated financial institutions, including 
4.15 	credit cards and installment loans. Program 
4.16 	participants must be recruited through a 
4.17 	statewide network of trusted community-based 
4.18 	partners. Loan payments by borrowers must 
4.19 	be reported to the credit bureaus.
4.20 	(g) No later than July 15, 2024, and annually 
4.21 	thereafter until fiscal year 2027, Exodus 
4.22 	Lending must submit a report to the 
4.23 	commissioner of commerce on the activities 
4.24 	required of Exodus Lending under paragraphs 
4.25 	(e) and (f). The report must detail, at 
4.26 	minimum, each of the following for the prior 
4.27 	calendar year:
4.28 	(1) the total number of loans granted;
4.29 	(2) the total number of participants granted 
4.30 	loans;
4.31 	(3) an analysis of the participants' race and 
4.32 	ethnicity, gender, and geographic locations;
4.33 	(4) the average loan amount;
5.1 	(5) the total loan amounts paid back by 
5.2 	participants;
5.3 	(6) a list of the trusted community-based 
5.4 	partners described under paragraph (f);
5.5 	(7) the final criteria developed for 
5.6 	character-based small dollar loan program 
5.7 	determinations under paragraph (f); and
5.8 	(8) summary data on the significant barriers 
5.9 	to mainstream financial products faced by 
5.10 	participants.
5.11 	No later than August 15, 2024, and annually 
5.12 	thereafter until fiscal year 2027, the 
5.13 	commissioner of commerce must submit a 
5.14 	report to the chairs and ranking minority 
5.15 	members of the legislative committees with 
5.16 	primary jurisdiction over commerce and 
5.17 	consumer protection. The report must detail 
5.18 	the information collected by the commissioner 
5.19 	of commerce under paragraph (f).
5.20 	(h) $12,000 each year is for the intermediate 
5.21 	blends of gasoline and biofuels report in 
5.22 	Minnesota Statutes, chapter 239.791, 
5.23 	subdivision 8.

5.24	Subd. 4.Enforcement
 		7,185,000
		7,473,000

5.25	Appropriations by Fund
	
5.26	General
	6,977,000
	7,258,000
	
5.27
5.28	Workers' 
Compensation
	208,000
	215,000
	
5.29 	(a) $811,000 each year is for five additional 
5.30 	peace officers in the Commerce Fraud Bureau. 
5.31 	Money under this paragraph is transferred 
5.32 	from the general fund to the insurance fraud 
5.33 	prevention account under Minnesota Statutes, 
5.34 	section 45.0135, subdivision 6.
6.1 	(b) $345,000 each year is for additional staff 
6.2 	to focus on market conduct examinations.
6.3 	(c) $283,000 each year is for the law 
6.4 	enforcement salary increases authorized under 
6.5 	Laws 2021, First Special Session chapter 4, 
6.6 	article 9, section 1.
6.7 	(d) $41,000 the first year and $21,000 the 
6.8 	second year are for body cameras worn by 
6.9 	Commerce Fraud Bureau agents.
6.10 	(e) $208,000 in the first year and $215,000 in 
6.11 	the second year are from the workers' 
6.12 	compensation fund.
6.13 	(f) $100,000 in the second year is to create 
6.14 	and operate the Mental Health Parity and 
6.15 	Substance Abuse Accountability Office under 
6.16 	Minnesota Statutes, section 62Q.465. The base 
6.17 	for this appropriation is $175,000 in fiscal year 
6.18 	2026 and each year thereafter.

6.19	Subd. 5.Telecommunications
 		3,221,000
		3,261,000

6.20	Appropriations by Fund
	
6.21	General
	1,128,000
	1,168,000
	
6.22	Special Revenue
	2,093,000
	2,093,000
	
6.23 	$2,093,000 each year is from the 
6.24 	telecommunications access Minnesota fund 
6.25 	account in the special revenue fund for the 
6.26 	following transfers:
6.27 	(1) $1,620,000 each year is to the 
6.28 	commissioner of human services to 
6.29 	supplement the ongoing operational expenses 
6.30 	of the Commission of Deaf, DeafBlind, and 
6.31 	Hard-of-Hearing Minnesotans. This transfer 
6.32 	is subject to Minnesota Statutes, section 
6.33 	16A.281;
7.1 	(2) $290,000 each year is to the chief 
7.2 	information officer to coordinate technology 
7.3 	accessibility and usability;
7.4 	(3) $133,000 each year is to the Legislative 
7.5 	Coordinating Commission for captioning 
7.6 	legislative coverage. This transfer is subject 
7.7 	to Minnesota Statutes, section 16A.281; and
7.8 	(4) $50,000 each year is to the Office of 
7.9 	MN.IT Services for a consolidated access fund 
7.10 	to provide grants or services to other state 
7.11 	agencies related to accessibility of web-based 
7.12 	services.

7.13	Subd. 6.Insurance
 		9,305,000
		9,709,000

7.14	Appropriations by Fund
	
7.15	General
	8,583,000
	8,967,000
	
7.16
7.17	Workers' 
Compensation
	580,000
	600,000
	
7.18 	(a) $136,000 each year is to advance 
7.19 	standardized health plan options.
7.20 	(b) $318,000 each year is to conduct a 
7.21 	feasibility study on a proposal to offer free 
7.22 	primary care to Minnesotans. This is a onetime 
7.23 	appropriation.
7.24 	(c) $105,000 each year is to evaluate 
7.25 	legislation for new mandated health benefits 
7.26 	under Minnesota Statutes, section 62J.26.
7.27 	(d) $180,000 each year is for additional staff 
7.28 	to focus on property- and casualty-related 
7.29 	insurance products.
7.30 	(e) $580,000 in the first year and $600,000 in 
7.31 	the second year are from the workers' 
7.32 	compensation fund.
8.1 	(f) $42,000 each year is for ensuring health 
8.2 	plan company compliance with Minnesota 
8.3 	Statutes, section 62Q.47.
8.4 	(g) $25,000 each year is to pay the costs 
8.5 	incurred to evaluate existing statutory health 
8.6 	benefit mandates under article 2, section 39.

8.7	Subd. 7.Weights and Measures Division
 		1,531,000
		1,556,000

8.8	Sec. 3. ATTORNEY GENERAL
 	$
	549,000
	$
	549,000
	
8.9 	$549,000 each year is for the duties under 
8.10 	Minnesota Statutes, sections 62J.841 to 
8.11 	64J.845.

8.12	Sec. 4. DEPARTMENT OF HEALTH
 	$
	74,000
	$
	56,000
	
8.13 	(a) $69,000 the first year and $51,000 the 
8.14 	second year are for the duties under Minnesota 
8.15 	Statutes, sections 62J.841 to 64J.845.
8.16 	(b) $5,000 each year is for consultation with 
8.17 	the commissioner of commerce to evaluate 
8.18 	existing statutory health benefits under article 
8.19 	2, section 39.

8.20	Sec. 5. DEPARTMENT OF EDUCATION
 	$
	100,000
	$
	-0-
	
8.21 	(a) $100,000 the first year is for a grant to the 
8.22 	Minnesota Council on Economic Education. 
8.23 	The money must be used by the council to:
8.24 	(1) provide professional development to 
8.25 	Minnesota teachers of courses or content 
8.26 	related to personal finance or consumer 
8.27 	protection for students in grades 9 through 12;
8.28 	(2) support the direct-to-student ancillary 
8.29 	personal finance programs that Minnesota 
8.30 	teachers supervise and coach or that the 
8.31 	Minnesota Council on Economic Education 
8.32 	delivers directly to students; and
9.1 	(3) provide support to geographically diverse 
9.2 	affiliated higher education-based centers for 
9.3 	economic education engaged in financial 
9.4 	literacy education as it pertains to financial 
9.5 	literacy education initiatives, including those 
9.6 	based at Minnesota State University Mankato, 
9.7 	St. Cloud State University, and St. Catherine 
9.8 	University, as their work relates to activities 
9.9 	in clauses (1) and (2).
9.10 	(b) The Minnesota Council on Economic 
9.11 	Education must prepare and submit reports to 
9.12 	the commissioner of education in the form and 
9.13 	manner prescribed by the commissioner that:
9.14 	(1) describe the number and type of in-person 
9.15 	and online teacher professional development 
9.16 	opportunities provided by the Minnesota 
9.17 	Council on Economic Education or its 
9.18 	affiliated state centers;
9.19 	(2) list the content, length, and location of the 
9.20 	programs;
9.21 	(3) identify the number of preservice and 
9.22 	licensed teachers receiving professional 
9.23 	development through each of these 
9.24 	opportunities;
9.25 	(4) summarize evaluations of professional 
9.26 	opportunities for teachers; and
9.27 	(5) list the number, types, and summary 
9.28 	evaluations of the direct-to-student ancillary 
9.29 	personal finance programs that are supported 
9.30 	with funds from the grant.
9.31 	(c) By February 15 of each year following the 
9.32 	receipt of a grant, the Minnesota Council on 
9.33 	Economic Education must provide a mid-year 
9.34 	report to the commissioner of education and, 
10.1 	on August 15 of each year following receipt 
10.2 	of a grant, the Minnesota Council on 
10.3 	Economic Education must prepare a year-end 
10.4 	report according to the requirements of 
10.5 	paragraph (b). The reports must be prepared 
10.6 	and filed according to Minnesota Statutes, 
10.7 	section 3.195. The commissioner may request 
10.8 	additional information as necessary. This is a 
10.9 	onetime appropriation. Any balance in the first 
10.10 	year does not cancel and is available in the 
10.11 	second year.

10.12 	Sec. 6. PREMIUM SECURITY ACCOUNT TRANSFER; OUT.
 10.13 	$275,775,000 in fiscal year 2026 is transferred from the premium security plan account 
10.14 	under Minnesota Statutes, section 62E.25, subdivision 1, to the general fund. This is a 
10.15 	onetime transfer.

10.16 	Sec. 7. TRANSFER FROM CONSUMER EDUCATION ACCOUNT.
 10.17 	$100,000 in fiscal year 2024 is transferred from the consumer education account in the 
10.18 	special revenue fund to the general fund.

10.19 	Sec. 8. Laws 2022, chapter 93, article 1, section 2, subdivision 5, is amended to read:

10.20	Subd. 5.Enforcement and Examinations
 		-0-
		522,000
	
10.21 	$522,000 in fiscal year 2023 is for the auto 
10.22 	theft prevention library under Minnesota 
10.23 	Statutes, section 65B.84, subdivision 1, 
10.24 	paragraph (d). This is a onetime appropriation
10.25 	and is available until June 30, 2024.

10.26 	ARTICLE 2
10.27 	INSURANCE POLICY

10.28 	Section 1. Minnesota Statutes 2022, section 60A.14, subdivision 1, is amended to read:
10.29 		Subdivision 1.Fees other than examination fees. In addition to the fees and charges 
10.30 	provided for examinations, the following fees must be paid to the commissioner for deposit 
10.31 	in the general fund:
11.1 	(a) by township mutual fire insurance companies:
11.2 	(1) for filing certificate of incorporation $25 and amendments thereto, $10;
11.3 	(2) for filing annual statements, $15;
11.4 	(3) for each annual certificate of authority, $15;
11.5 	(4) for filing bylaws $25 and amendments thereto, $10;
11.6 	(b) by other domestic and foreign companies including fraternals and reciprocal 
11.7 	exchanges:
11.8 	(1) for filing an application for an initial certification of authority to be admitted to 
11.9 	transact business in this state, $1,500;
11.10 	(2) for filing certified copy of certificate of articles of incorporation, $100;
11.11 	(3) for filing annual statement, $225 $300;
11.12 	(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;
11.13 	(5) for filing bylaws, $75 or amendments thereto, $75;
11.14 	(6) for each company's certificate of authority, $575 $750, annually;
11.15 	(c) the following general fees apply:
11.16 	(1) for each certificate, including certified copy of certificate of authority, renewal, 
11.17 	valuation of life policies, corporate condition or qualification, $25;
11.18 	(2) for each copy of paper on file in the commissioner's office 50 cents per page, and 
11.19 	$2.50 for certifying the same;
11.20 	(3) for license to procure insurance in unadmitted foreign companies, $575;
11.21 	(4) for valuing the policies of life insurance companies, one cent two cents per $1,000 
11.22 	of insurance so valued, provided that the fee shall not exceed $13,000 $26,000 per year for 
11.23 	any company. The commissioner may, in lieu of a valuation of the policies of any foreign 
11.24 	life insurance company admitted, or applying for admission, to do business in this state, 
11.25 	accept a certificate of valuation from the company's own actuary or from the commissioner 
11.26 	of insurance of the state or territory in which the company is domiciled;
11.27 	(5) for receiving and filing certificates of policies by the company's actuary, or by the 
11.28 	commissioner of insurance of any other state or territory, $50;
11.29 	(6) for each appointment of an agent filed with the commissioner, $30;
12.1 	(7) for filing forms, rates, and compliance certifications under section 60A.315, $140 
12.2 	per filing, or $125 per filing when submitted via electronic filing system. Filing fees may 
12.3 	be paid on a quarterly basis in response to an invoice. Billing and payment may be made 
12.4 	electronically;
12.5 	(8) for annual renewal of surplus lines insurer license, $300 $400.
12.6 	The commissioner shall adopt rules to define filings that are subject to a fee.

12.7 	Sec. 2. Minnesota Statutes 2022, section 62A.152, subdivision 3, is amended to read:
12.8 		Subd. 3.Provider discrimination prohibited. All group policies and group subscriber 
12.9 	contracts that provide benefits for mental or nervous disorder treatments in a hospital must 
12.10 	provide direct reimbursement for those services at a hospital or psychiatric residential 
12.11 	treatment facility if performed by a mental health professional qualified according to section 
12.12 	245I.04, subdivision 2, to the extent that the services and treatment are within the scope of 
12.13 	mental health professional licensure.
12.14 	This subdivision is intended to provide payment of benefits for mental or nervous disorder 
12.15 	treatments performed by a licensed mental health professional in a hospital or psychiatric 
12.16 	residential treatment facility and is not intended to change or add benefits for those services 
12.17 	provided in policies or contracts to which this subdivision applies.

12.18 	Sec. 3. Minnesota Statutes 2022, section 62D.02, is amended by adding a subdivision to 
12.19 	read:
12.20 		Subd. 17.Preventive items and services. "Preventive items and services" has the 
12.21 	meaning given in section 62Q.46, subdivision 1, paragraph (a).

12.22 	Sec. 4. Minnesota Statutes 2022, section 62D.095, subdivision 2, is amended to read:
12.23 		Subd. 2.Co-payments.  A health maintenance contract may impose a co-payment and 
12.24 	coinsurance consistent with the provisions of the Affordable Care Act as defined under 
12.25 	section 62A.011, subdivision 1a, and for items and services that are not preventive items 
12.26 	and services.

12.27 	Sec. 5. Minnesota Statutes 2022, section 62D.095, subdivision 3, is amended to read:
12.28 		Subd. 3.Deductibles.  A health maintenance contract may must not impose a deductible 
12.29 	consistent with the provisions of the Affordable Care Act as defined under section 62A.011, 
12.30 	subdivision 1afor preventive items and services.

13.1 	Sec. 6. Minnesota Statutes 2022, section 62D.095, subdivision 4, is amended to read:
13.2 		Subd. 4.Annual out-of-pocket maximums.  A health maintenance contract may must 
13.3 	not impose an annual out-of-pocket maximum consistent with the provisions of the 
13.4 	Affordable Care Act as defined under section 62A.011, subdivision 1a for services rendered 
13.5 	that are not listed under section 62D.02, subdivision 17, or for preventive items and services.

13.6 	Sec. 7. Minnesota Statutes 2022, section 62D.095, subdivision 5, is amended to read:
13.7 		Subd. 5.Exceptions. No Co-payments or deductibles may must not be imposed on 
13.8 	preventive health care items and services consistent with the provisions of the Affordable 
13.9 	Care Act as defined under section 62A.011, subdivision 1a.

13.10 	Sec. 8. [62J.841] DEFINITIONS.
13.11 		Subdivision 1.Scope. For purposes of sections 62J.841 to 62J.845, the following 
13.12 	definitions apply.
13.13 		Subd. 2.Consumer Price Index. "Consumer Price Index" means the Consumer Price 
13.14 	Index, Annual Average, for All Urban Consumers, CPI-U: U.S. City Average, All Items, 
13.15 	reported by the United States Department of Labor, Bureau of Labor Statistics, or its 
13.16 	successor or, if the index is discontinued, an equivalent index reported by a federal authority 
13.17 	or, if no such index is reported, "Consumer Price Index" means a comparable index chosen 
13.18 	by the Bureau of Labor Statistics.
13.19 		Subd. 3.Generic or off-patent drug. "Generic or off-patent drug" means any prescription 
13.20 	drug for which any exclusive marketing rights granted under the Federal Food, Drug, and 
13.21 	Cosmetic Act, section 351 of the federal Public Health Service Act, and federal patent law 
13.22 	have expired, including any drug-device combination product for the delivery of a generic 
13.23 	drug.
13.24 		Subd. 4.Manufacturer. "Manufacturer" has the meaning provided in section 151.01, 
13.25 	subdivision 14a, but does not include an entity required solely because the entity repackages 
13.26 	or relabels drugs.
13.27 		Subd. 5.Prescription drug. "Prescription drug" means a drug for human use subject 
13.28 	to United States Code, title 21, section 353(b)(1).
13.29 		Subd. 6.Wholesale acquisition cost. "Wholesale acquisition cost" has the meaning 
13.30 	provided in United States Code, title 42, section 1395w-3a.
14.1 		Subd. 7.Wholesale distributor. "Wholesale distributor" has the meaning provided in 
14.2 	section 151.441, subdivision 14.

14.3 	Sec. 9. [62J.842] EXCESSIVE PRICE INCREASES PROHIBITED.
14.4 		Subdivision 1.Prohibition. No manufacturer shall impose, or cause to be imposed, an 
14.5 	excessive price increase, whether directly or through a wholesale distributor, pharmacy, or 
14.6 	similar intermediary, on the sale of any generic or off-patent drug sold, dispensed, or 
14.7 	delivered to any consumer in the state.
14.8 		Subd. 2.Excessive price increase. A price increase is excessive for purposes of this 
14.9 	section when:
14.10 	(1) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds:
14.11 	(i) 15 percent of the wholesale acquisition cost over the immediately preceding calendar 
14.12 	year; or
14.13 	(ii) 40 percent of the wholesale acquisition cost over the immediately preceding three 
14.14 	calendar years; and
14.15 	(2) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds 
14.16 	$30 for:
14.17 	(i) a 30-day supply of the drug; or
14.18 	(ii) a course of treatment lasting less than 30 days.
14.19 		Subd. 3.Exemption. It is not a violation of this section for a wholesale distributor or 
14.20 	pharmacy to increase the price of a generic or off-patent drug if the price increase is directly 
14.21 	attributable to additional costs for the drug imposed on the wholesale distributor or pharmacy 
14.22 	by the manufacturer of the drug.

14.23 	Sec. 10. [62J.843] REGISTERED AGENT AND OFFICE WITHIN THE STATE.
14.24 	Any manufacturer that sells, distributes, delivers, or offers for sale any generic or 
14.25 	off-patent drug in the state must maintain a registered agent and office within the state.

14.26 	Sec. 11. [62J.844] ENFORCEMENT.
14.27 		Subdivision 1.Notification. (a) The commissioner of health shall notify the manufacturer 
14.28 	of a generic or off-patent drug, the attorney general, and the Board of Pharmacy of any price 
14.29 	increase that the commissioner believes may violate section 62J.842.
15.1 	(b) The commissioner of management and budget and any other state agency that provides 
15.2 	or purchases a pharmacy benefit except the Department of Human Services, and any entity 
15.3 	under contract with a state agency to provide a pharmacy benefit other than an entity under 
15.4 	contract with the Department of Human Services, may notify the manufacturer of a generic 
15.5 	or off-patent drug, the attorney general, and the Board of Pharmacy of any price increase 
15.6 	that the commissioner or entity believes may violate section 62J.842.
15.7 		Subd. 2.Submission of drug cost statement and other information by manufacturer; 
15.8 	investigation by attorney general. (a) Within 45 days of receiving a notice under subdivision 
15.9 	1, the manufacturer of the generic or off-patent drug shall submit a drug cost statement to 
15.10 	the attorney general. The statement must:
15.11 	(1) itemize the cost components related to production of the drug;
15.12 	(2) identify the circumstances and timing of any increase in materials or manufacturing 
15.13 	costs that caused any increase during the preceding calendar year, or preceding three calendar 
15.14 	years as applicable, in the price of the drug; and
15.15 	(3) provide any other information that the manufacturer believes to be relevant to a 
15.16 	determination of whether a violation of section 62J.842 has occurred.
15.17 	(b) The attorney general may investigate whether a violation of section 62J.842 has 
15.18 	occurred, in accordance with section 8.31, subdivision 2.
15.19 		Subd. 3.Petition to court. (a) On petition of the attorney general, a court may issue an 
15.20 	order:
15.21 	(1) compelling the manufacturer of a generic or off-patent drug to:
15.22 	(i) provide the drug cost statement required under subdivision 2, paragraph (a); and
15.23 	(ii) answer interrogatories, produce records or documents, or be examined under oath, 
15.24 	as required by the attorney general under subdivision 2, paragraph (b);
15.25 	(2) restraining or enjoining a violation of sections 62J.841 to 62J.845, including issuing 
15.26 	an order requiring that drug prices be restored to levels that comply with section 62J.842;
15.27 	(3) requiring the manufacturer to provide an accounting to the attorney general of all 
15.28 	revenues resulting from a violation of section 62J.842;
15.29 	(4) requiring the manufacturer to repay to all Minnesota consumers, including any 
15.30 	third-party payers, any money acquired as a result of a price increase that violates section 
15.31 	62J.842;
16.1 	(5) notwithstanding section 16A.151, requiring that all revenues generated from a 
16.2 	violation of section 62J.842 be remitted to the state and deposited into a special fund, to be 
16.3 	used for initiatives to reduce the cost to consumers of acquiring prescription drugs, if a 
16.4 	manufacturer is unable to determine the individual transactions necessary to provide the 
16.5 	repayments described in clause (4);
16.6 	(6) imposing a civil penalty of up to $10,000 per day for each violation of section 62J.842;
16.7 	(7) providing for the attorney general's recovery of costs and disbursements incurred in 
16.8 	bringing an action against a manufacturer found in violation of section 62J.842, including 
16.9 	the costs of investigation and reasonable attorney's fees; and
16.10 	(8) providing any other appropriate relief, including any other equitable relief as 
16.11 	determined by the court.
16.12 	(b) For purposes of paragraph (a), clause (6), every individual transaction in violation 
16.13 	of section 62J.842 is considered a separate violation.
16.14 		Subd. 4.Private right of action. Any action brought pursuant to section 8.31, subdivision 
16.15 	3a, by a person injured by a violation of section 62J.842 is for the benefit of the public.

16.16 	Sec. 12. [62J.845] PROHIBITION ON WITHDRAWAL OF GENERIC OR 
16.17 	OFF-PATENT DRUGS FOR SALE.
16.18 		Subdivision 1.Prohibition. A manufacturer of a generic or off-patent drug is prohibited 
16.19 	from withdrawing that drug from sale or distribution within this state for the purpose of 
16.20 	avoiding the prohibition on excessive price increases under section 62J.842.
16.21 		Subd. 2.Notice to board and attorney general. Any manufacturer that intends to 
16.22 	withdraw a generic or off-patent drug from sale or distribution within the state shall provide 
16.23 	a written notice of withdrawal to the Board of Pharmacy and the attorney general at least 
16.24 	90 days prior to the withdrawal.
16.25 		Subd. 3.Financial penalty. The attorney general shall assess a penalty of $500,000 on 
16.26 	any manufacturer of a generic or off-patent drug that the attorney general determines has 
16.27 	failed to comply with the requirements of this section.

16.28 	Sec. 13. [62J.846] SEVERABILITY.
16.29 	If any provision of sections 62J.841 to 62J.845 or the application thereof to any person 
16.30 	or circumstance is held invalid for any reason in a court of competent jurisdiction, the 
17.1 	invalidity does not affect other provisions or any other application of sections 62J.841 to 
17.2 	62J.845 that can be given effect without the invalid provision or application.

17.3 	Sec. 14. [62J.85] CITATION.
17.4 	Sections 62J.85 to 62J.95 may be cited as the "Prescription Drug Affordability Act."

17.5 	Sec. 15. [62J.86] DEFINITIONS.
17.6 		Subdivision 1.Definitions. For the purposes of sections 62J.85 to 62J.95, the following 
17.7 	terms have the meanings given.
17.8 		Subd. 2.Advisory council. "Advisory council" means the Prescription Drug Affordability 
17.9 	Advisory Council established under section 62J.88.
17.10 		Subd. 3.Biologic. "Biologic" means a drug that is produced or distributed in accordance 
17.11 	with a biologics license application approved under Code of Federal Regulations, title 42, 
17.12 	section 447.502.
17.13 		Subd. 4.Biosimilar. "Biosimilar" has the meaning provided in section 62J.84, subdivision 
17.14 	2, paragraph (b).
17.15 		Subd. 5.Board. "Board" means the Prescription Drug Affordability Board established 
17.16 	under section 62J.87.
17.17 		Subd. 6.Brand name drug. "Brand name drug" means a drug that is produced or 
17.18 	distributed pursuant to:
17.19 	(1) a new drug application approved under United States Code, title 21, section 355(c), 
17.20 	except for a generic drug as defined under Code of Federal Regulations, title 42, section 
17.21 	447.502; or
17.22 	(2) a biologics license application approved under United States Code, title 45, section 
17.23 	262(a)(c).
17.24 		Subd. 7.Generic drug. "Generic drug" has the meaning provided in section 62J.84, 
17.25 	subdivision 2, paragraph (e).
17.26 		Subd. 8.Group purchaser. "Group purchaser" has the meaning given in section 62J.03, 
17.27 	subdivision 6, and includes pharmacy benefit managers, as defined in section 62W.02, 
17.28 	subdivision 15.
17.29 		Subd. 9.Manufacturer. "Manufacturer" means an entity that:
18.1 	(1) engages in the manufacture of a prescription drug product or enters into a lease with 
18.2 	another manufacturer to market and distribute a prescription drug product under the entity's 
18.3 	own name; and
18.4 	(2) sets or changes the wholesale acquisition cost of the prescription drug product it 
18.5 	manufacturers or markets.
18.6 		Subd. 10.Prescription drug product. "Prescription drug product" means a brand name 
18.7 	drug, a generic drug, a biologic, or a biosimilar.
18.8 		Subd. 11.Wholesale acquisition cost or WAC. "Wholesale acquisition cost" or "WAC" 
18.9 	has the meaning given in United States Code, title 42, section 1395W-3a(c)(6)(B).

18.10 	Sec. 16. [62J.87] PRESCRIPTION DRUG AFFORDABILITY BOARD.
18.11 		Subdivision 1.Establishment. The commissioner of commerce shall establish the 
18.12 	Prescription Drug Affordability Board, which shall be governed as a board under section 
18.13 	15.012, paragraph (a), to protect consumers, state and local governments, health plan 
18.14 	companies, providers, pharmacies, and other health care system stakeholders from 
18.15 	unaffordable costs of certain prescription drugs.
18.16 		Subd. 2.Membership. (a) The Prescription Drug Affordability Board consists of nine 
18.17 	members appointed as follows:
18.18 	(1) seven voting members appointed by the governor;
18.19 	(2) one nonvoting member appointed by the majority leader of the senate; and
18.20 	(3) one nonvoting member appointed by the speaker of the house.
18.21 	(b) All members appointed must have knowledge and demonstrated expertise in 
18.22 	pharmaceutical economics and finance or health care economics and finance. A member 
18.23 	must not be an employee of, a board member of, or a consultant to a manufacturer or trade 
18.24 	association for manufacturers, or a pharmacy benefit manager or trade association for 
18.25 	pharmacy benefit managers.
18.26 	(c) Initial appointments must be made by January 1, 2024.
18.27 		Subd. 3.Terms. (a) Board appointees shall serve four-year terms, except that initial 
18.28 	appointees shall serve staggered terms of two, three, or four years as determined by lot by 
18.29 	the secretary of state. A board member shall serve no more than two consecutive terms.
18.30 	(b) A board member may resign at any time by giving written notice to the board.
19.1 		Subd. 4.Chair; other officers. (a) The governor shall designate an acting chair from 
19.2 	the members appointed by the governor.
19.3 	(b) The board shall elect a chair to replace the acting chair at the first meeting of the 
19.4 	board by a majority of the members. The chair shall serve for one year.
19.5 	(c) The board shall elect a vice-chair and other officers from its membership as it deems 
19.6 	necessary.
19.7 		Subd. 5.Staff; technical assistance. (a) The board shall hire an executive director and 
19.8 	other staff, who shall serve in the unclassified service. The executive director must have 
19.9 	knowledge and demonstrated expertise in pharmacoeconomics, pharmacology, health policy, 
19.10 	health services research, medicine, or a related field or discipline.
19.11 	(b) The commissioner of health shall provide technical assistance to the board. The board 
19.12 	may also employ or contract for professional and technical assistance as the board deems 
19.13 	necessary to perform the board's duties.
19.14 	(c) The attorney general shall provide legal services to the board.
19.15 		Subd. 6.Compensation. The board members shall not receive compensation but may 
19.16 	receive reimbursement for expenses as authorized under section 15.059, subdivision 3.
19.17 		Subd. 7.Meetings. (a) Meetings of the board are subject to chapter 13D. The board shall 
19.18 	meet publicly at least every three months to review prescription drug product information 
19.19 	submitted to the board under section 62J.90. If there are no pending submissions, the chair 
19.20 	of the board may cancel or postpone the required meeting. The board may meet in closed 
19.21 	session when reviewing proprietary information, as determined under the standards developed 
19.22 	in accordance with section 62J.91, subdivision 3.
19.23 	(b) The board shall announce each public meeting at least three weeks prior to the 
19.24 	scheduled date of the meeting. Any materials for the meeting shall be made public at least 
19.25 	two weeks prior to the scheduled date of the meeting.
19.26 	(c) At each public meeting, the board shall provide the opportunity for comments from 
19.27 	the public, including the opportunity for written comments to be submitted to the board 
19.28 	prior to a decision by the board.

19.29 	Sec. 17. [62J.88] PRESCRIPTION DRUG AFFORDABILITY ADVISORY 
19.30 	COUNCIL.
19.31 		Subdivision 1.Establishment. The governor shall appoint a 18-member stakeholder 
19.32 	advisory council to provide advice to the board on drug cost issues and to represent 
20.1 	stakeholders' views. The governor shall appoint the members of the advisory council based 
20.2 	on the members' knowledge and demonstrated expertise in one or more of the following 
20.3 	areas: the pharmaceutical business; practice of medicine; patient perspectives; health care 
20.4 	cost trends and drivers; clinical and health services research; and the health care marketplace.
20.5 		Subd. 2.Membership. The council's membership shall consist of the following:
20.6 	(1) two members representing patients and health care consumers;
20.7 	(2) two members representing health care providers;
20.8 	(3) one member representing health plan companies;
20.9 	(4) two members representing employers, with one member representing large employers 
20.10 	and one member representing small employers;
20.11 	(5) one member representing government employee benefit plans;
20.12 	(6) one member representing pharmaceutical manufacturers;
20.13 	(7) one member who is a health services clinical researcher;
20.14 	(8) one member who is a pharmacologist;
20.15 	(9) one member representing the commissioner of health with expertise in health 
20.16 	economics;
20.17 	(10) one member representing pharmaceutical wholesalers;
20.18 	(11) one member representing pharmacy benefit managers;
20.19 	(12) one member from the Rare Disease Advisory Council;
20.20 	(13) one member representing generic drug manufacturers;
20.21 	(14) one member representing pharmaceutical distributors; and
20.22 	(15) one member who is an oncologist who is not employed by, under contract with, or 
20.23 	otherwise affiliated with a hospital.
20.24 		Subd. 3.Terms. (a) The initial appointments to the advisory council must be made by 
20.25 	January 1, 2024. The initial appointed advisory council members shall serve staggered terms 
20.26 	of two, three, or four years, determined by lot by the secretary of state. Following the initial 
20.27 	appointments, the advisory council members shall serve four-year terms.
20.28 	(b) Removal and vacancies of advisory council members shall be governed by section 
20.29 	15.059.
21.1 		Subd. 4.Compensation. Advisory council members may be compensated according to 
21.2 	section 15.059, except that those advisory council members designated in subdivision 2, 
21.3 	clauses (10) to (15), must not be compensated.
21.4 		Subd. 5.Meetings. Meetings of the advisory council are subject to chapter 13D. The 
21.5 	advisory council shall meet publicly at least every three months to advise the board on drug 
21.6 	cost issues related to the prescription drug product information submitted to the board under 
21.7 	section 62J.90.
21.8 		Subd. 6.Exemption. Notwithstanding section 15.059, the advisory council shall not 
21.9 	expire.

21.10 	Sec. 18. [62J.89] CONFLICTS OF INTEREST.
21.11 		Subdivision 1.Definition. For purposes of this section, "conflict of interest" means a 
21.12 	financial or personal association that has the potential to bias or have the appearance of 
21.13 	biasing a person's decisions in matters related to the board, the advisory council, or in the 
21.14 	conduct of the board's or council's activities. A conflict of interest includes any instance in 
21.15 	which a person, a person's immediate family member, including a spouse, parent, child, or 
21.16 	other legal dependent, or an in-law of any of the preceding individuals, has received or 
21.17 	could receive a direct or indirect financial benefit of any amount deriving from the result 
21.18 	or findings of a decision or determination of the board. For purposes of this section, a 
21.19 	financial benefit includes honoraria, fees, stock, the value of the member's, immediate family 
21.20 	member's, or in-law's stock holdings, and any direct financial benefit deriving from the 
21.21 	finding of a review conducted under sections 62J.85 to 62J.95. Ownership of securities is 
21.22 	not a conflict of interest if the securities are: (1) part of a diversified mutual or exchange 
21.23 	traded fund; or (2) in a tax-deferred or tax-exempt retirement account that is administered 
21.24 	by an independent trustee.
21.25 		Subd. 2.General. (a) Prior to the acceptance of an appointment or employment, or prior 
21.26 	to entering into a contractual agreement, a board or advisory council member, board staff 
21.27 	member, or third-party contractor must disclose to the appointing authority or the board 
21.28 	any conflicts of interest. The information disclosed must include the type, nature, and 
21.29 	magnitude of the interests involved.
21.30 	(b) A board member, board staff member, or third-party contractor with a conflict of 
21.31 	interest with regard to any prescription drug product under review must recuse themselves 
21.32 	from any discussion, review, decision, or determination made by the board relating to the 
21.33 	prescription drug product.
22.1 	(c) Any conflict of interest must be disclosed in advance of the first meeting after the 
22.2 	conflict is identified or within five days after the conflict is identified, whichever is earlier.
22.3 		Subd. 3.Prohibitions. Board members, board staff, or third-party contractors are 
22.4 	prohibited from accepting gifts, bequeaths, or donations of services or property that raise 
22.5 	the specter of a conflict of interest or have the appearance of injecting bias into the activities 
22.6 	of the board.

22.7 	Sec. 19. [62J.90] PRESCRIPTION DRUG PRICE INFORMATION; DECISION 
22.8 	TO CONDUCT COST REVIEW.
22.9 		Subdivision 1.Drug price information from the commissioner of health and other 
22.10 	sources. (a) The commissioner of health shall provide to the board the information reported 
22.11 	to the commissioner by drug manufacturers under section 62J.84, subdivisions 3, 4, and 5. 
22.12 	The commissioner shall provide this information to the board within 30 days of the date the 
22.13 	information is received from drug manufacturers.
22.14 	(b) The board may subscribe to one or more prescription drug pricing files, such as 
22.15 	Medispan or FirstDatabank, or as otherwise determined by the board.
22.16 		Subd. 2.Identification of certain prescription drug products. (a) The board, in 
22.17 	consultation with the advisory council, shall identify selected prescription drug products 
22.18 	that have been on the market for at least seven years, are not designated by the United States 
22.19 	Food and Drug Administration under United States Code, title 21, section 360bb, as a drug 
22.20 	solely for the treatment of a rare disease or condition, and meet the following criteria:
22.21 	(1) brand name drugs or biologics for which the WAC increases by $3,000 during any 
22.22 	12-month period or course of treatment if less than 12 months, after adjusting for changes 
22.23 	in the consumer price index (CPI);
22.24 	(2) brand name drugs or biologics with a WAC of $60,000 or more per calendar year 
22.25 	or per course of treatment;
22.26 	(3) biosimilar drugs that have a WAC that is not at least 20 percent lower than the 
22.27 	referenced brand name biologic at the time the biosimilar is introduced; and
22.28 	(4) generic drugs for which:
22.29 	(i) the price increase, adjusted for inflation using the Consumer Price Index, as defined 
22.30 	in section 62J.841, subdivision 2, exceeds:
22.31 	(A) 15 percent of the wholesale acquisition cost over the immediately preceding calendar 
22.32 	year; or
23.1 	(B) 40 percent of the wholesale acquisition cost over the immediately preceding three 
23.2 	calendar years; and
23.3 	(ii) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds 
23.4 	$30 for:
23.5 	(A) a 30-day supply of the drug; or
23.6 	(B) a course of treatment lasting less than 30 days.
23.7 	The board is not required to identify all prescription drug products that meet the criteria in 
23.8 	this paragraph.
23.9 	(b) The board, in consultation with the advisory council and the commissioner of health, 
23.10 	may identify prescription drug products not described in paragraph (a) that may impose 
23.11 	costs that create significant affordability challenges for the state health care system or for 
23.12 	patients, including but not limited to drugs to address public health emergencies.
23.13 	(c) The board shall make available to the public the names and related price information 
23.14 	of the prescription drug products identified under this subdivision, with the exception of 
23.15 	information determined by the board to be proprietary under the standards developed by 
23.16 	the board under section 62J.91, subdivision 3, and information provided by the commissioner 
23.17 	of health classified as not public data under section 13.02, subdivision 8a, or as trade secret 
23.18 	information under section 13.37, subdivision 1, paragraph (b), or as trade secret information 
23.19 	under the Defend Trade Secrets Act of 2016, United States Code, title 18, section 1836, as 
23.20 	amended.
23.21 		Subd. 3.Determination to proceed with review. (a) The board may initiate a cost 
23.22 	review of a prescription drug product identified by the board under this section.
23.23 	(b) The board shall consider requests by the public for the board to proceed with a cost 
23.24 	review of any prescription drug product identified under this section.
23.25 	(c) If there is no consensus among the members of the board on whether to initiate a 
23.26 	cost review of a prescription drug product, any member of the board may request a vote to 
23.27 	determine whether to review the cost of the prescription drug product.

23.28 	Sec. 20. [62J.91] PRESCRIPTION DRUG PRODUCT REVIEWS.
23.29 		Subdivision 1.General. Once a decision by the board has been made to proceed with 
23.30 	a cost review of a prescription drug product, the board shall conduct the review and make 
23.31 	a determination as to whether appropriate utilization of the prescription drug under review, 
23.32 	based on utilization that is consistent with the United States Food and Drug Administration 
24.1 	(FDA) label or standard medical practice, has led or will lead to affordability challenges 
24.2 	for the state health care system or for patients.
24.3 		Subd. 2.Review considerations. In reviewing the cost of a prescription drug product, 
24.4 	the board may consider the following factors:
24.5 	(1) the price at which the prescription drug product has been and will be sold in the state;
24.6 	(2) manufacturer monetary price concessions, discounts, or rebates, and drug-specific 
24.7 	patient assistance;
24.8 	(3) the price of therapeutic alternatives;
24.9 	(4) the cost to group purchasers based on patient access consistent with the FDA-labeled 
24.10 	indications and standard medical practice;
24.11 	(5) measures of patient access, including cost-sharing and other metrics;
24.12 	(6) the extent to which the attorney general or a court has determined that a price increase 
24.13 	for a generic or off-patent prescription drug product was excessive under sections 62J.842 
24.14 	and 62J.844;
24.15 	(7) any information a manufacturer chooses to provide; and
24.16 	(8) any other factors as determined by the board.
24.17 		Subd. 3.Public data; proprietary information. (a) Any submission made to the board 
24.18 	related to a drug cost review must be made available to the public with the exception of 
24.19 	information determined by the board to be proprietary and information provided by the 
24.20 	commissioner of health classified as not public data under section 13.02, subdivision 8a, or 
24.21 	as trade secret information under section 13.37, subdivision 1, paragraph (b), or as trade 
24.22 	secret information under the Defend Trade Secrets Act of 2016, United States Code, title 
24.23 	18, section 1836, as amended.
24.24 	(b) The board shall establish the standards for the information to be considered proprietary 
24.25 	under paragraph (a) and section 62J.90, subdivision 2, including standards for heightened 
24.26 	consideration of proprietary information for submissions for a cost review of a drug that is 
24.27 	not yet approved by the FDA.
24.28 	(c) Prior to the board establishing the standards under paragraph (b), the public shall be 
24.29 	provided notice and the opportunity to submit comments.
24.30 	(d) The establishment of standards under this subdivision is exempt from the rulemaking 
24.31 	requirements under chapter 14, and section 14.386 does not apply.

25.1 	Sec. 21. [62J.92] DETERMINATIONS; COMPLIANCE; REMEDIES.
25.2 		Subdivision 1.Upper payment limit. (a) In the event the board finds that the spending 
25.3 	on a prescription drug product reviewed under section 62J.91 creates an affordability 
25.4 	challenge for the state health care system or for patients, the board shall establish an upper 
25.5 	payment limit after considering:
25.6 	(1) extraordinary supply costs, if applicable;
25.7 	(2) the range of prices at which the drug is sold in the United States according to one or 
25.8 	more pricing files accessed under section 62J.90, subdivision 1, and the range at which 
25.9 	pharmacies are reimbursed in Canada; and
25.10 	(3) any other relevant pricing and administrative cost information for the drug.
25.11 	(b) An upper payment limit applies to all purchases of, and payer reimbursements for, 
25.12 	a prescription drug that is dispensed or administered to individuals in the state in person, 
25.13 	by mail, or by other means, and for which an upper payment limit has been established.
25.14 		Subd. 2.Implementation and administration of the upper payment limit. (a) An 
25.15 	upper payment limit may take effect no sooner than 120 days following the date of its public 
25.16 	release by the board.
25.17 	(b) When setting an upper payment limit for a drug subject to the Medicare maximum 
25.18 	fair price under United States Code, title 42, section 1191(c), the board shall set the upper 
25.19 	payment limit at the Medicare maximum fair price.
25.20 	(c) Pharmacy dispensing fees must not be counted toward or subject to any upper payment 
25.21 	limit. State-licensed independent pharmacies must not be reimbursed by health carriers and 
25.22 	pharmacy benefit managers at amounts that are less than the upper payment limit.
25.23 	(d) Health plan companies and pharmacy benefit managers shall report annually to the 
25.24 	board, in the form and manner specified by the board, on how cost savings resulting from 
25.25 	the establishment of an upper payment limit have been used by the health plan company or 
25.26 	pharmacy benefit manager to benefit enrollees, including but not limited to reducing enrollee 
25.27 	cost-sharing.
25.28 		Subd. 3.Noncompliance. (a) The board shall, and other persons may, notify the Office 
25.29 	of the Attorney General of a potential failure by an entity subject to an upper payment limit 
25.30 	to comply with that limit.
26.1 	(b) If the Office of the Attorney General finds that an entity was noncompliant with the 
26.2 	upper payment limit requirements, the attorney general may pursue remedies consistent 
26.3 	with chapter 8 or appropriate criminal charges if there is evidence of intentional profiteering.
26.4 	(c) An entity who obtains price concessions from a drug manufacturer that result in a 
26.5 	lower net cost to the stakeholder than the upper payment limit established by the board is 
26.6 	not considered noncompliant.
26.7 	(d) The Office of the Attorney General may provide guidance to stakeholders concerning 
26.8 	activities that could be considered noncompliant.
26.9 		Subd. 4.Appeals. (a) Persons affected by a decision of the board may request an appeal 
26.10 	of the board's decision within 30 days of the date of the decision. The board shall hear the 
26.11 	appeal and render a decision within 60 days of the hearing.
26.12 	(b) All appeal decisions are subject to judicial review in accordance with chapter 14.

26.13 	Sec. 22. [62J.93] REPORTS.
26.14 	Beginning March 1, 2024, and each March 1 thereafter, the board shall submit a report 
26.15 	to the governor and legislature on general price trends for prescription drug products and 
26.16 	the number of prescription drug products that were subject to the board's cost review and 
26.17 	analysis, including the result of any analysis as well as the number and disposition of appeals 
26.18 	and judicial reviews.

26.19 	Sec. 23. [62J.94] ERISA PLANS AND MEDICARE DRUG PLANS.
26.20 	(a) Nothing in sections 62J.85 to 62J.95 shall be construed to require ERISA plans or 
26.21 	Medicare Part D plans to comply with decisions of the board. ERISA plans or Medicare 
26.22 	Part D plans are free to choose to exceed the upper payment limit established by the board 
26.23 	under section 62J.92.
26.24 	(b) Providers who dispense and administer drugs in the state must bill all payers no more 
26.25 	than the upper payment limit without regard to whether an ERISA plan or Medicare Part 
26.26 	D plan chooses to reimburse the provider in an amount greater than the upper payment limit 
26.27 	established by the board.
26.28 	(c) For purposes of this section, an ERISA plan or group health plan is an employee 
26.29 	welfare benefit plan established by or maintained by an employer or an employee 
26.30 	organization, or both, that provides employer sponsored health coverage to employees and 
26.31 	the employee's dependents and is subject to the Employee Retirement Income Security Act 
26.32 	of 1974 (ERISA).

27.1 	Sec. 24. [62J.95] SEVERABILITY.
27.2 	If any provision of sections 62J.85 to 62J.94 or the application thereof to any person or 
27.3 	circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity 
27.4 	does not affect other provisions or any other application of sections 62J.85 to 62J.94 that 
27.5 	can be given effect without the invalid provision or application.

27.6 	Sec. 25. Minnesota Statutes 2022, section 62K.10, subdivision 4, is amended to read:
27.7 		Subd. 4.Network adequacy. Each designated provider network must include a sufficient 
27.8 	number and type of providers, including providers that specialize in mental health and 
27.9 	substance use disorder services, to ensure that covered services are available to all enrollees 
27.10 	without unreasonable delay. In determining network adequacy, the commissioner of health 
27.11 	shall consider availability of services, including the following:
27.12 	(1) primary care physician services are available and accessible 24 hours per day, seven 
27.13 	days per week, within the network area;
27.14 	(2) a sufficient number of primary care physicians have hospital admitting privileges at 
27.15 	one or more participating hospitals within the network area so that necessary admissions 
27.16 	are made on a timely basis consistent with generally accepted practice parameters;
27.17 	(3) specialty physician service is available through the network or contract arrangement;
27.18 	(4) mental health and substance use disorder treatment providers, including but not 
27.19 	limited to psychiatric residential treatment facilities, are available and accessible through 
27.20 	the network or contract arrangement;
27.21 	(5) to the extent that primary care services are provided through primary care providers 
27.22 	other than physicians, and to the extent permitted under applicable scope of practice in state 
27.23 	law for a given provider, these services shall be available and accessible; and
27.24 	(6) the network has available, either directly or through arrangements, appropriate and 
27.25 	sufficient personnel, physical resources, and equipment to meet the projected needs of 
27.26 	enrollees for covered health care services.

27.27 	Sec. 26. Minnesota Statutes 2022, section 62Q.19, subdivision 1, is amended to read:
27.28 		Subdivision 1.Designation. (a) The commissioner shall designate essential community 
27.29 	providers. The criteria for essential community provider designation shall be the following:
28.1 	(1) a demonstrated ability to integrate applicable supportive and stabilizing services with 
28.2 	medical care for uninsured persons and high-risk and special needs populations, underserved, 
28.3 	and other special needs populations; and
28.4 	(2) a commitment to serve low-income and underserved populations by meeting the 
28.5 	following requirements:
28.6 	(i) has nonprofit status in accordance with chapter 317A;
28.7 	(ii) has tax-exempt status in accordance with the Internal Revenue Service Code, section 
28.8 	501(c)(3);
28.9 	(iii) charges for services on a sliding fee schedule based on current poverty income 
28.10 	guidelines; and
28.11 	(iv) does not restrict access or services because of a client's financial limitation;
28.12 	(3) status as a local government unit as defined in section 62D.02, subdivision 11, a 
28.13 	hospital district created or reorganized under sections 447.31 to 447.37, an Indian tribal 
28.14 	government, an Indian health service unit, or a community health board as defined in chapter 
28.15 	145A;
28.16 	(4) a former state hospital that specializes in the treatment of cerebral palsy, spina bifida, 
28.17 	epilepsy, closed head injuries, specialized orthopedic problems, and other disabling 
28.18 	conditions;
28.19 	(5) a sole community hospital. For these rural hospitals, the essential community provider 
28.20 	designation applies to all health services provided, including both inpatient and outpatient 
28.21 	services. For purposes of this section, "sole community hospital" means a rural hospital 
28.22 	that:
28.23 	(i) is eligible to be classified as a sole community hospital according to Code of Federal 
28.24 	Regulations, title 42, section 412.92, or is located in a community with a population of less 
28.25 	than 5,000 and located more than 25 miles from a like hospital currently providing acute 
28.26 	short-term services;
28.27 	(ii) has experienced net operating income losses in two of the previous three most recent 
28.28 	consecutive hospital fiscal years for which audited financial information is available; and
28.29 	(iii) consists of 40 or fewer licensed beds;
28.30 	(6) a birth center licensed under section 144.615; or
28.31 	(7) a hospital and affiliated specialty clinics that predominantly serve patients who are 
28.32 	under 21 years of age and meet the following criteria:
29.1 	(i) provide intensive specialty pediatric services that are routinely provided in fewer 
29.2 	than five hospitals in the state; and
29.3 	(ii) serve children from at least one-half of the counties in the state; or
29.4 	(8) a psychiatric residential treatment facility, as defined in section 256B.0625, 
29.5 	subdivision 45a, paragraph (b), that is certified and licensed by the commissioner of health.
29.6 	(b) Prior to designation, the commissioner shall publish the names of all applicants in 
29.7 	the State Register. The public shall have 30 days from the date of publication to submit 
29.8 	written comments to the commissioner on the application. No designation shall be made 
29.9 	by the commissioner until the 30-day period has expired.
29.10 	(c) The commissioner may designate an eligible provider as an essential community 
29.11 	provider for all the services offered by that provider or for specific services designated by 
29.12 	the commissioner.
29.13 	(d) For the purpose of this subdivision, supportive and stabilizing services include at a 
29.14 	minimum, transportation, child care, cultural, and linguistic services where appropriate.

29.15 	Sec. 27. Minnesota Statutes 2022, section 62Q.46, subdivision 1, is amended to read:
29.16 		Subdivision 1.Coverage for preventive items and services. (a) "Preventive items and 
29.17 	services" has the meaning specified in the Affordable Care Act. Preventive items and services 
29.18 	includes:
29.19 	(1) evidence-based items or services that have in effect a rating of A or B in the current 
29.20 	recommendations of the United States Preventive Services Task Force with respect to the 
29.21 	individual involved;
29.22 	(2) immunizations for routine use in children, adolescents, and adults that have in effect 
29.23 	a recommendation from the Advisory Committee on Immunization Practices of the Centers 
29.24 	for Disease Control and Prevention with respect to the individual involved. For purposes 
29.25 	of this clause, a recommendation from the Advisory Committee on Immunization Practices 
29.26 	of the Centers for Disease Control and Prevention is considered in effect after the 
29.27 	recommendation has been adopted by the Director of the Centers for Disease Control and 
29.28 	Prevention, and a recommendation is considered to be for routine use if the recommendation 
29.29 	is listed on the Immunization Schedules of the Centers for Disease Control and Prevention;
29.30 	(3) with respect to infants, children, and adolescents, evidence-informed preventive care 
29.31 	and screenings provided for in comprehensive guidelines supported by the Health Resources 
29.32 	and Services Administration;
30.1 	(4) with respect to women, additional preventive care and screenings that are not listed 
30.2 	with a rating of A or B by the United States Preventive Services Task Force but that are 
30.3 	provided for in comprehensive guidelines supported by the Health Resources and Services 
30.4 	Administration;
30.5 	(5) all contraceptive methods established in guidelines published by the United States 
30.6 	Food and Drug Administration;
30.7 	(6) screenings for human immunodeficiency virus for:
30.8 	(i) all individuals at least 15 years of age but less than 65 years of age; and
30.9 	(ii) all other individuals with increased risk of human immunodeficiency virus infection 
30.10 	according to guidance from the Centers for Disease Control;
30.11 	(7) all preexposure prophylaxis when used for the prevention or treatment of human 
30.12 	immunodeficiency virus, including but not limited to all preexposure prophylaxis, as defined 
30.13 	in any guidance by the United States Preventive Services Task Force or the Centers for 
30.14 	Disease Control, including the June 11, 2019, Preexposure Prophylaxis for the Prevention 
30.15 	of HIV Infection United States Preventive Services Task Force Recommendation Statement; 
30.16 	and
30.17 	(8) all postexposure prophylaxis when used for the prevention or treatment of human 
30.18 	immunodeficiency virus, including but not limited to all postexposure prophylaxis as defined 
30.19 	in any guidance by the United States Preventive Services Task Force or the Centers for 
30.20 	Disease Control.
30.21 	(b) A health plan company must provide coverage for preventive items and services at 
30.22 	a participating provider without imposing cost-sharing requirements, including a deductible, 
30.23 	coinsurance, or co-payment. Nothing in this section prohibits a health plan company that 
30.24 	has a network of providers from excluding coverage or imposing cost-sharing requirements 
30.25 	for preventive items or services that are delivered by an out-of-network provider.
30.26 	(c) A health plan company is not required to provide coverage for any items or services 
30.27 	specified in any recommendation or guideline described in paragraph (a) if the 
30.28 	recommendation or guideline is no longer included as a preventive item or service as defined 
30.29 	in paragraph (a). Annually, a health plan company must determine whether any additional 
30.30 	items or services must be covered without cost-sharing requirements or whether any items 
30.31 	or services are no longer required to be covered.
31.1 	(d) Nothing in this section prevents a health plan company from using reasonable medical 
31.2 	management techniques to determine the frequency, method, treatment, or setting for a 
31.3 	preventive item or service to the extent not specified in the recommendation or guideline.
31.4 	(e) This section does not apply to grandfathered plans.
31.5 	(f) This section does not apply to plans offered by the Minnesota Comprehensive Health 
31.6 	Association.

31.7 	Sec. 28. Minnesota Statutes 2022, section 62Q.46, subdivision 3, is amended to read:
31.8 		Subd. 3.Additional services not prohibited. Nothing in this section prohibits a health 
31.9 	plan company from providing coverage for preventive items and services in addition to 
31.10 	those specified in the Affordable Care Act under subdivision 1, paragraph (a), or from 
31.11 	denying coverage for preventive items and services that are not recommended as preventive 
31.12 	items and services specified under the Affordable Care Act subdivision 1, paragraph (a). A 
31.13 	health plan company may impose cost-sharing requirements for a treatment not described 
31.14 	in the Affordable Care Act under subdivision 1, paragraph (a), even if the treatment results 
31.15 	from a preventive item or service described in the Affordable Care Act under subdivision 
31.16 	1, paragraph (a).

31.17 	Sec. 29. [62Q.465] MENTAL HEALTH PARITY AND SUBSTANCE ABUSE 
31.18 	ACCOUNTABILITY OFFICE.
31.19 	(a) The Mental Health Parity and Substance Abuse Accountability Office is established 
31.20 	within the Department of Commerce to create and execute effective strategies for 
31.21 	implementing the requirements under:
31.22 	(1) section 62Q.47;
31.23 	(2) the federal Mental Health Parity Act of 1996, Public Law 104-204;
31.24 	(3) the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction 
31.25 	Equity Act of 2008, Public Law 110-343, division C, sections 511 and 512;
31.26 	(4) the Affordable Care Act, as defined under section 62A.011, subdivision 1a; and
31.27 	(5) amendments made to, and federal guidance or regulations issued or adopted under, 
31.28 	the acts listed under clauses (2) to (4).
31.29 	(b) The office may oversee compliance reviews, conduct and lead stakeholder 
31.30 	engagement, review consumer and provider complaints, and serve as a resource for ensuring 
31.31 	health plan compliance with mental health and substance abuse requirements.

32.1 	Sec. 30. Minnesota Statutes 2022, section 62Q.47, is amended to read:
32.2 	62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY 
32.3 	SERVICES.
32.4 	(a) All health plans, as defined in section 62Q.01, that provide coverage for alcoholism, 
32.5 	mental health, or chemical dependency services, must comply with the requirements of this 
32.6 	section.
32.7 	(b) Cost-sharing requirements and benefit or service limitations for outpatient mental 
32.8 	health and outpatient chemical dependency and alcoholism services, except for persons 
32.9 	placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to 
32.10 	9530.6655, must not place a greater financial burden on the insured or enrollee, or be more 
32.11 	restrictive than those requirements and limitations for outpatient medical services.
32.12 	(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital 
32.13 	mental health services, psychiatric residential treatment facility services, and inpatient 
32.14 	hospital and residential chemical dependency and alcoholism services, except for persons 
32.15 	placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to 
32.16 	9530.6655, must not place a greater financial burden on the insured or enrollee, or be more 
32.17 	restrictive than those requirements and limitations for inpatient hospital medical services.
32.18 	(d) A health plan company must not impose an NQTL with respect to mental health and 
32.19 	substance use disorders in any classification of benefits unless, under the terms of the health 
32.20 	plan as written and in operation, any processes, strategies, evidentiary standards, or other 
32.21 	factors used in applying the NQTL to mental health and substance use disorders in the 
32.22 	classification are comparable to, and are applied no more stringently than, the processes, 
32.23 	strategies, evidentiary standards, or other factors used in applying the NQTL with respect 
32.24 	to medical and surgical benefits in the same classification.
32.25 	(e) All health plans must meet the requirements of the federal Mental Health Parity Act 
32.26 	of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and 
32.27 	Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal 
32.28 	guidance or regulations issued under, those acts.
32.29 	(f) The commissioner may require information from health plan companies to confirm 
32.30 	that mental health parity is being implemented by the health plan company. Information 
32.31 	required may include comparisons between mental health and substance use disorder 
32.32 	treatment and other medical conditions, including a comparison of prior authorization 
32.33 	requirements, drug formulary design, claim denials, rehabilitation services, and other 
32.34 	information the commissioner deems appropriate.
33.1 	(g) Regardless of the health care provider's professional license, if the service provided 
33.2 	is consistent with the provider's scope of practice and the health plan company's credentialing 
33.3 	and contracting provisions, mental health therapy visits and medication maintenance visits 
33.4 	shall be considered primary care visits for the purpose of applying any enrollee cost-sharing 
33.5 	requirements imposed under the enrollee's health plan.
33.6 	(h) All health plan companies offering health plans that provide coverage for alcoholism, 
33.7 	mental health, or chemical dependency benefits shall provide reimbursement for the benefits 
33.8 	delivered through the psychiatric Collaborative Care Model, which must include the following 
33.9 	Current Procedural Terminology or Healthcare Common Procedure Coding System billing 
33.10 	codes:
33.11 	(1) 99492;
33.12 	(2) 99493;
33.13 	(3) 99494;
33.14 	(4) G2214; and
33.15 	(5) G0512.
33.16 	This paragraph does not apply to: (i) managed care plans or county-based purchasing plans 
33.17 	when the plan provides coverage to public health care program enrollees under chapter 
33.18 	256B or 256L; or (ii) health care coverage offered by the state employee group insurance 
33.19 	program.
33.20 	(i) The commissioner of commerce shall update the list of codes in paragraph (h) if any 
33.21 	alterations or additions to the billing codes for the psychiatric Collaborative Care Model 
33.22 	are made.
33.23 	(j) "Psychiatric Collaborative Care Model" means the evidence-based, integrated 
33.24 	behavioral health service delivery method described at Federal Register, volume 81, page 
33.25 	80230, which includes a formal collaborative arrangement among a primary care team 
33.26 	consisting of a primary care provider, a care manager, and a psychiatric consultant, and 
33.27 	includes but is not limited to the following elements:
33.28 	(1) care directed by the primary care team;
33.29 	(2) structured care management;
33.30 	(3) regular assessments of clinical status using validated tools; and
33.31 	(4) modification of treatment as appropriate.
34.1 	(h) (k) By June 1 of each year, beginning June 1, 2021, the commissioner of commerce, 
34.2 	in consultation with the commissioner of health, shall submit a report on compliance and 
34.3 	oversight to the chairs and ranking minority members of the legislative committees with 
34.4 	jurisdiction over health and commerce. The report must:
34.5 	(1) describe the commissioner's process for reviewing health plan company compliance 
34.6 	with United States Code, title 42, section 18031(j), any federal regulations or guidance 
34.7 	relating to compliance and oversight, and compliance with this section and section 62Q.53;
34.8 	(2) identify any enforcement actions taken by either commissioner during the preceding 
34.9 	12-month period regarding compliance with parity for mental health and substance use 
34.10 	disorders benefits under state and federal law, summarizing the results of any market conduct 
34.11 	examinations. The summary must include: (i) the number of formal enforcement actions 
34.12 	taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the 
34.13 	subject matter of each enforcement action, including quantitative and nonquantitative 
34.14 	treatment limitations;
34.15 	(3) detail any corrective action taken by either commissioner to ensure health plan 
34.16 	company compliance with this section, section 62Q.53, and United States Code, title 42, 
34.17 	section 18031(j); and
34.18 	(4) describe the information provided by either commissioner to the public about 
34.19 	alcoholism, mental health, or chemical dependency parity protections under state and federal 
34.20 	law.
34.21 	The report must be written in nontechnical, readily understandable language and must be 
34.22 	made available to the public by, among other means as the commissioners find appropriate, 
34.23 	posting the report on department websites. Individually identifiable information must be 
34.24 	excluded from the report, consistent with state and federal privacy protections.

34.25 	Sec. 31. [62Q.481] COST-SHARING FOR PRESCRIPTION DRUGS AND RELATED 
34.26 	MEDICAL SUPPLIES TO TREAT CHRONIC DISEASE.
34.27 		Subdivision 1.Cost-sharing limits. (a) A health plan must limit the amount of any 
34.28 	enrollee cost-sharing for prescription drugs prescribed to treat a chronic disease to no more 
34.29 	than: (1) $25 per one-month supply for each prescription drug, regardless of the amount or 
34.30 	type of medication required to fill the prescription; and (2) $50 per month in total for all 
34.31 	related medical supplies. The cost-sharing limit for related medical supplies does not increase 
34.32 	with the number of chronic diseases for which an enrollee is treated. Coverage under this 
34.33 	section shall not be subject to any deductible.
35.1 	(b) If application of this section before an enrollee has met the enrollee's plan deductible 
35.2 	results in: (1) health savings account ineligibility under United States Code, title 26, section 
35.3 	223; or (2) catastrophic health plan ineligibility under United States Code, title 42, section 
35.4 	18022(e), this section applies to the specific prescription drug or related medical supply 
35.5 	only after the enrollee has met the enrollee's plan deductible.
35.6 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions apply.
35.7 	(b) "Chronic disease" means diabetes, asthma, and allergies requiring the use of 
35.8 	epinephrine auto-injectors.
35.9 	(c) "Cost-sharing" means co-payments and coinsurance.
35.10 	(d) "Related medical supplies" means syringes, insulin pens, insulin pumps, test strips, 
35.11 	glucometers, continuous glucose monitors, epinephrine auto-injectors, asthma inhalers, and 
35.12 	other medical supply items necessary to effectively and appropriately treat a chronic disease 
35.13 	or administer a prescription drug prescribed to treat a chronic disease.

35.14 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
35.15 	plans offered, issued, or renewed on or after that date.

35.16 	Sec. 32. Minnesota Statutes 2022, section 62Q.81, subdivision 4, is amended to read:
35.17 		Subd. 4.Essential health benefits; definition. For purposes of this section, "essential 
35.18 	health benefits" has the meaning given under section 1302(b) of the Affordable Care Act 
35.19 	and includes:
35.20 	(1) ambulatory patient services;
35.21 	(2) emergency services;
35.22 	(3) hospitalization;
35.23 	(4) laboratory services;
35.24 	(5) maternity and newborn care;
35.25 	(6) mental health and substance use disorder services, including behavioral health 
35.26 	treatment;
35.27 	(7) pediatric services, including oral and vision care;
35.28 	(8) prescription drugs;
35.29 	(9) preventive and wellness services and chronic disease management;
35.30 	(10) rehabilitative and habilitative services and devices; and
36.1 	(11) additional essential health benefits included in the EHB-benchmark plan, as defined 
36.2 	under the Affordable Care Act, and preventive items and services, as defined under section 
36.3 	62Q.46, subdivision 1, paragraph (a).

36.4 	Sec. 33. Minnesota Statutes 2022, section 62Q.81, is amended by adding a subdivision to 
36.5 	read:
36.6 		Subd. 7.Standard plans. (a) A health plan company that offers individual health plans 
36.7 	must ensure that no less than one individual health plan at each level of coverage described 
36.8 	in subdivision 1, paragraph (b), clause (3), that the health plan company offers in each 
36.9 	geographic rating area the health plan company serves, conforms to the standard plan 
36.10 	parameters determined by the commissioner under paragraph (e).
36.11 	(b) An individual health plan offered under this subdivision must be:
36.12 	(1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection 
36.13 	process;
36.14 	(2) marketed as standard plans and in the same manner as other individual health plans 
36.15 	offered by the health plan company; and
36.16 	(3) offered for purchase to any individual.
36.17 	(c) This subdivision does not apply to catastrophic plans, grandfathered plans, small 
36.18 	group health plans, large group health plans, health savings accounts, qualified high 
36.19 	deductible health benefit plans, limited health benefit plans, or short-term limited-duration 
36.20 	health insurance policies.
36.21 	(d) Health plan companies must meet the requirements in this subdivision separately for 
36.22 	plans offered through MNsure under chapter 62V and plans offered outside of MNsure.
36.23 	(e) The commissioner of commerce, in consultation with the commissioner of health, 
36.24 	must annually determine standard plan parameters, including but not limited to cost-sharing 
36.25 	structure and covered benefits, that comprise a standard plan in Minnesota.
36.26 	(f) Notwithstanding section 62A.65, subdivision 2, a health plan company may 
36.27 	discontinue offering a health plan under this subdivision if, three years after the date the 
36.28 	plan is initially offered,  the plan has fewer than 75 enrollees enrolled in the plan. A health 
36.29 	plan company discontinuing a plan under this paragraph must only discontinue the health 
36.30 	plan that has fewer than 75 enrollees and:
37.1 	(1) provide notice of the plan's discontinuation in writing, in a form prescribed by the 
37.2 	commissioner, to each individual enrolled in the plan at least 90 calendar days before the 
37.3 	date the coverage is discontinued;
37.4 	(2) offer on a guaranteed issue basis to each individual enrolled the option to purchase 
37.5 	an individual health plan currently being offered by the health plan company for individuals 
37.6 	in that geographic rating area. An enrollee who does not select an option must be 
37.7 	automatically enrolled in the individual health plan closest in actuarial value to the enrollee's 
37.8 	current plan; and
37.9 	(3) act uniformly without regard to any health status-related factor of enrolled individuals 
37.10 	or dependents of enrolled individuals who may become eligible for coverage.

37.11 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to individual 
37.12 	health plans offered, issued, or renewed on or after that date.

37.13 	Sec. 34. [62W.15] CLINICIAN-ADMINISTERED DRUGS.
37.14 		Subdivision 1.Definition. (a) For purposes of this section, the following definition 
37.15 	applies.
37.16 	(b) "Clinician-administered drug" means an outpatient prescription drug other than a 
37.17 	vaccine that:
37.18 	(1) cannot reasonably be self-administered by the enrollee to whom the drug is prescribed 
37.19 	or by an individual assisting the enrollee with self-administration; and
37.20 	(2) is typically administered:
37.21 	(i) by a health care provider authorized to administer the drug, including when acting 
37.22 	under a physician's delegation and supervision; and
37.23 	(ii) in a physician's office, hospital outpatient infusion center, or other clinical setting.
37.24 		Subd. 2.Safety and care requirements for clinician-administered drugs. (a) A 
37.25 	specialty pharmacy that ships a clinician-administered drug to a health care provider or 
37.26 	pharmacy must:
37.27 	(1) comply with all federal laws regulating the shipment of drugs, including but not 
37.28 	limited to the U.S. Pharmacopeia General Chapter 800;
37.29 	(2) in response to questions from a health care provider or pharmacy, provide access to 
37.30 	a pharmacist or nurse employed by the specialty pharmacy 24 hours a day, 7 days a week;
38.1 	(3) allow an enrollee and health care provider to request a refill of a clinician-administered 
38.2 	drug on behalf of an enrollee, in accordance with the pharmacy benefit manager or health 
38.3 	carrier's utilization review procedures; and
38.4 	(4) adhere to the track and trace requirements, as defined by the federal Drug Supply 
38.5 	Chain Security Act, United States Code, title 21, section 360eee, et seq., for a 
38.6 	clinician-administered drug that needs to be compounded or manipulated.
38.7 	(b) For any clinician-administered drug dispensed by a specialty pharmacy selected by 
38.8 	the pharmacy benefit manager or health carrier, the requesting health care provider or their 
38.9 	designee must provide the requested date, approximate time, and place of delivery of a 
38.10 	clinician-administered drug at least five business days before the date of delivery. The 
38.11 	specialty pharmacy must require a signature upon receipt of the shipment when shipped to 
38.12 	a health care provider.
38.13 	(c) A pharmacy benefit manager or health carrier who requires dispensing of a 
38.14 	clinician-administered drug through a specialty pharmacy shall establish and disclose a 
38.15 	process which allows the health care provider or pharmacy to appeal and have exceptions 
38.16 	to the use of a specialty pharmacy when:
38.17 	(1) a drug is not delivered as specified in paragraph (b); or
38.18 	(2) an attending health care provider reasonably believes an enrollee may experience 
38.19 	immediate and irreparable harm without the immediate, onetime use of clinician-administered 
38.20 	drug that a health care provider or pharmacy has in stock.
38.21 	(d) A pharmacy benefit manager or health carrier shall not require a specialty pharmacy 
38.22 	to dispense a clinician-administered drug directly to an enrollee with the intention that the 
38.23 	enrollee will transport the clinician-administered drug to a health care provider for 
38.24 	administration.
38.25 	(e) A pharmacy benefit manager, health carrier, health care provider, or pharmacist shall 
38.26 	not require and may not deny the use of a home infusion or infusion site external to the 
38.27 	enrollee's provider office or clinic to dispense or administer a clinician-administered drug 
38.28 	when requested by an enrollee and such services are covered by the health plan and are 
38.29 	available and clinically appropriate as determined by the health care provider and delivered 
38.30 	in accordance with state law.

38.31 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
38.32 	plans offered, issued, or renewed on or after that date.

39.1 	Sec. 35. Minnesota Statutes 2022, section 151.071, subdivision 1, is amended to read:
39.2 		Subdivision 1.Forms of disciplinary action. When the board finds that a licensee, 
39.3 	registrant, or applicant has engaged in conduct prohibited under subdivision 2, it may do 
39.4 	one or more of the following:
39.5 	(1) deny the issuance of a license or registration;
39.6 	(2) refuse to renew a license or registration;
39.7 	(3) revoke the license or registration;
39.8 	(4) suspend the license or registration;
39.9 	(5) impose limitations, conditions, or both on the license or registration, including but 
39.10 	not limited to: the limitation of practice to designated settings; the limitation of the scope 
39.11 	of practice within designated settings; the imposition of retraining or rehabilitation 
39.12 	requirements; the requirement of practice under supervision; the requirement of participation 
39.13 	in a diversion program such as that established pursuant to section 214.31 or the conditioning 
39.14 	of continued practice on demonstration of knowledge or skills by appropriate examination 
39.15 	or other review of skill and competence;
39.16 	(6) impose a civil penalty not exceeding $10,000 for each separate violation, except that 
39.17 	a civil penalty not exceeding $25,000 may be imposed for each separate violation of section 
39.18 	62J.842, the amount of the civil penalty to be fixed so as to deprive a licensee or registrant 
39.19 	of any economic advantage gained by reason of the violation, to discourage similar violations 
39.20 	by the licensee or registrant or any other licensee or registrant, or to reimburse the board 
39.21 	for the cost of the investigation and proceeding, including but not limited to, fees paid for 
39.22 	services provided by the Office of Administrative Hearings, legal and investigative services 
39.23 	provided by the Office of the Attorney General, court reporters, witnesses, reproduction of 
39.24 	records, board members' per diem compensation, board staff time, and travel costs and 
39.25 	expenses incurred by board staff and board members; and
39.26 	(7) reprimand the licensee or registrant.

39.27 	Sec. 36. Minnesota Statutes 2022, section 151.071, subdivision 2, is amended to read:
39.28 		Subd. 2.Grounds for disciplinary action. The following conduct is prohibited and is 
39.29 	grounds for disciplinary action:
39.30 	(1) failure to demonstrate the qualifications or satisfy the requirements for a license or 
39.31 	registration contained in this chapter or the rules of the board. The burden of proof is on 
39.32 	the applicant to demonstrate such qualifications or satisfaction of such requirements;
40.1 	(2) obtaining a license by fraud or by misleading the board in any way during the 
40.2 	application process or obtaining a license by cheating, or attempting to subvert the licensing 
40.3 	examination process. Conduct that subverts or attempts to subvert the licensing examination 
40.4 	process includes, but is not limited to: (i) conduct that violates the security of the examination 
40.5 	materials, such as removing examination materials from the examination room or having 
40.6 	unauthorized possession of any portion of a future, current, or previously administered 
40.7 	licensing examination; (ii) conduct that violates the standard of test administration, such as 
40.8 	communicating with another examinee during administration of the examination, copying 
40.9 	another examinee's answers, permitting another examinee to copy one's answers, or 
40.10 	possessing unauthorized materials; or (iii) impersonating an examinee or permitting an 
40.11 	impersonator to take the examination on one's own behalf;
40.12 	(3) for a pharmacist, pharmacy technician, pharmacist intern, applicant for a pharmacist 
40.13 	or pharmacy license, or applicant for a pharmacy technician or pharmacist intern registration, 
40.14 	conviction of a felony reasonably related to the practice of pharmacy. Conviction as used 
40.15 	in this subdivision includes a conviction of an offense that if committed in this state would 
40.16 	be deemed a felony without regard to its designation elsewhere, or a criminal proceeding 
40.17 	where a finding or verdict of guilt is made or returned but the adjudication of guilt is either 
40.18 	withheld or not entered thereon. The board may delay the issuance of a new license or 
40.19 	registration if the applicant has been charged with a felony until the matter has been 
40.20 	adjudicated;
40.21 	(4) for a facility, other than a pharmacy, licensed or registered by the board, if an owner 
40.22 	or applicant is convicted of a felony reasonably related to the operation of the facility. The 
40.23 	board may delay the issuance of a new license or registration if the owner or applicant has 
40.24 	been charged with a felony until the matter has been adjudicated;
40.25 	(5) for a controlled substance researcher, conviction of a felony reasonably related to 
40.26 	controlled substances or to the practice of the researcher's profession. The board may delay 
40.27 	the issuance of a registration if the applicant has been charged with a felony until the matter 
40.28 	has been adjudicated;
40.29 	(6) disciplinary action taken by another state or by one of this state's health licensing 
40.30 	agencies:
40.31 	(i) revocation, suspension, restriction, limitation, or other disciplinary action against a 
40.32 	license or registration in another state or jurisdiction, failure to report to the board that 
40.33 	charges or allegations regarding the person's license or registration have been brought in 
40.34 	another state or jurisdiction, or having been refused a license or registration by any other 
41.1 	state or jurisdiction. The board may delay the issuance of a new license or registration if an 
41.2 	investigation or disciplinary action is pending in another state or jurisdiction until the 
41.3 	investigation or action has been dismissed or otherwise resolved; and
41.4 	(ii) revocation, suspension, restriction, limitation, or other disciplinary action against a 
41.5 	license or registration issued by another of this state's health licensing agencies, failure to 
41.6 	report to the board that charges regarding the person's license or registration have been 
41.7 	brought by another of this state's health licensing agencies, or having been refused a license 
41.8 	or registration by another of this state's health licensing agencies. The board may delay the 
41.9 	issuance of a new license or registration if a disciplinary action is pending before another 
41.10 	of this state's health licensing agencies until the action has been dismissed or otherwise 
41.11 	resolved;
41.12 	(7) for a pharmacist, pharmacy, pharmacy technician, or pharmacist intern, violation of 
41.13 	any order of the board, of any of the provisions of this chapter or any rules of the board or 
41.14 	violation of any federal, state, or local law or rule reasonably pertaining to the practice of 
41.15 	pharmacy;
41.16 	(8) for a facility, other than a pharmacy, licensed by the board, violations of any order 
41.17 	of the board, of any of the provisions of this chapter or the rules of the board or violation 
41.18 	of any federal, state, or local law relating to the operation of the facility;
41.19 	(9) engaging in any unethical conduct; conduct likely to deceive, defraud, or harm the 
41.20 	public, or demonstrating a willful or careless disregard for the health, welfare, or safety of 
41.21 	a patient; or pharmacy practice that is professionally incompetent, in that it may create 
41.22 	unnecessary danger to any patient's life, health, or safety, in any of which cases, proof of 
41.23 	actual injury need not be established;
41.24 	(10) aiding or abetting an unlicensed person in the practice of pharmacy, except that it 
41.25 	is not a violation of this clause for a pharmacist to supervise a properly registered pharmacy 
41.26 	technician or pharmacist intern if that person is performing duties allowed by this chapter 
41.27 	or the rules of the board;
41.28 	(11) for an individual licensed or registered by the board, adjudication as mentally ill 
41.29 	or developmentally disabled, or as a chemically dependent person, a person dangerous to 
41.30 	the public, a sexually dangerous person, or a person who has a sexual psychopathic 
41.31 	personality, by a court of competent jurisdiction, within or without this state. Such 
41.32 	adjudication shall automatically suspend a license for the duration thereof unless the board 
41.33 	orders otherwise;
42.1 	(12) for a pharmacist or pharmacy intern, engaging in unprofessional conduct as specified 
42.2 	in the board's rules. In the case of a pharmacy technician, engaging in conduct specified in 
42.3 	board rules that would be unprofessional if it were engaged in by a pharmacist or pharmacist 
42.4 	intern or performing duties specifically reserved for pharmacists under this chapter or the 
42.5 	rules of the board;
42.6 	(13) for a pharmacy, operation of the pharmacy without a pharmacist present and on 
42.7 	duty except as allowed by a variance approved by the board;
42.8 	(14) for a pharmacist, the inability to practice pharmacy with reasonable skill and safety 
42.9 	to patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type 
42.10 	of material or as a result of any mental or physical condition, including deterioration through 
42.11 	the aging process or loss of motor skills. In the case of registered pharmacy technicians, 
42.12 	pharmacist interns, or controlled substance researchers, the inability to carry out duties 
42.13 	allowed under this chapter or the rules of the board with reasonable skill and safety to 
42.14 	patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type 
42.15 	of material or as a result of any mental or physical condition, including deterioration through 
42.16 	the aging process or loss of motor skills;
42.17 	(15) for a pharmacist, pharmacy, pharmacist intern, pharmacy technician, medical gas 
42.18 	dispenser, or controlled substance researcher, revealing a privileged communication from 
42.19 	or relating to a patient except when otherwise required or permitted by law;
42.20 	(16) for a pharmacist or pharmacy, improper management of patient records, including 
42.21 	failure to maintain adequate patient records, to comply with a patient's request made pursuant 
42.22 	to sections 144.291 to 144.298, or to furnish a patient record or report required by law;
42.23 	(17) fee splitting, including without limitation:
42.24 	(i) paying, offering to pay, receiving, or agreeing to receive, a commission, rebate, 
42.25 	kickback, or other form of remuneration, directly or indirectly, for the referral of patients;
42.26 	(ii) referring a patient to any health care provider as defined in sections 144.291 to 
42.27 	144.298 in which the licensee or registrant has a financial or economic interest as defined 
42.28 	in section 144.6521, subdivision 3, unless the licensee or registrant has disclosed the 
42.29 	licensee's or registrant's financial or economic interest in accordance with section 144.6521; 
42.30 	and
42.31 	(iii) any arrangement through which a pharmacy, in which the prescribing practitioner 
42.32 	does not have a significant ownership interest, fills a prescription drug order and the 
42.33 	prescribing practitioner is involved in any manner, directly or indirectly, in setting the price 
43.1 	for the filled prescription that is charged to the patient, the patient's insurer or pharmacy 
43.2 	benefit manager, or other person paying for the prescription or, in the case of veterinary 
43.3 	patients, the price for the filled prescription that is charged to the client or other person 
43.4 	paying for the prescription, except that a veterinarian and a pharmacy may enter into such 
43.5 	an arrangement provided that the client or other person paying for the prescription is notified, 
43.6 	in writing and with each prescription dispensed, about the arrangement, unless such 
43.7 	arrangement involves pharmacy services provided for livestock, poultry, and agricultural 
43.8 	production systems, in which case client notification would not be required;
43.9 	(18) engaging in abusive or fraudulent billing practices, including violations of the 
43.10 	federal Medicare and Medicaid laws or state medical assistance laws or rules;
43.11 	(19) engaging in conduct with a patient that is sexual or may reasonably be interpreted 
43.12 	by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning 
43.13 	to a patient;
43.14 	(20) failure to make reports as required by section 151.072 or to cooperate with an 
43.15 	investigation of the board as required by section 151.074;
43.16 	(21) knowingly providing false or misleading information that is directly related to the 
43.17 	care of a patient unless done for an accepted therapeutic purpose such as the dispensing and 
43.18 	administration of a placebo;
43.19 	(22) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
43.20 	established by any of the following:
43.21 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
43.22 	of section 609.215, subdivision 1 or 2;
43.23 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
43.24 	issued under section 609.215, subdivision 4;
43.25 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
43.26 	subdivision 5; or
43.27 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
43.28 	The board must investigate any complaint of a violation of section 609.215, subdivision 1 
43.29 	or 2;
43.30 	(23) for a pharmacist, practice of pharmacy under a lapsed or nonrenewed license. For 
43.31 	a pharmacist intern, pharmacy technician, or controlled substance researcher, performing 
43.32 	duties permitted to such individuals by this chapter or the rules of the board under a lapsed 
44.1 	or nonrenewed registration. For a facility required to be licensed under this chapter, operation 
44.2 	of the facility under a lapsed or nonrenewed license or registration; and
44.3 	(24) for a pharmacist, pharmacist intern, or pharmacy technician, termination or discharge 
44.4 	from the health professionals services program for reasons other than the satisfactory 
44.5 	completion of the program.; and
44.6 	(25) for a manufacturer, a violation of section 62J.842 or 62J.845.

44.7 	Sec. 37. Minnesota Statutes 2022, section 256B.0631, subdivision 1, is amended to read:
44.8 		Subdivision 1.Cost-sharing. (a) Except as provided in subdivision 2, the medical 
44.9 	assistance benefit plan shall include the following cost-sharing for all recipients, effective 
44.10 	for services provided on or after September 1, 2011:
44.11 	(1) $3 per nonpreventive visit, except as provided in paragraph (b). For purposes of this 
44.12 	subdivision, a visit means an episode of service which is required because of a recipient's 
44.13 	symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting 
44.14 	by a physician or physician assistant, chiropractor, podiatrist, nurse midwife, advanced 
44.15 	practice nurse, audiologist, optician, or optometrist;
44.16 	(2) $3.50 for nonemergency visits to a hospital-based emergency room, except that this 
44.17 	co-payment shall be increased to $20 upon federal approval;
44.18 	(3) $3 per brand-name drug prescription, $1 per generic drug prescription, and $1 per 
44.19 	prescription for a brand-name multisource drug listed in preferred status on the preferred 
44.20 	drug list, subject to a $12 per month maximum for prescription drug co-payments. No 
44.21 	co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness;
44.22 	(4) a family deductible equal to $2.75 per month per family and adjusted annually by 
44.23 	the percentage increase in the medical care component of the CPI-U for the period of 
44.24 	September to September of the preceding calendar year, rounded to the next higher five-cent 
44.25 	increment; and
44.26 	(5) total monthly cost-sharing must not exceed five percent of family income. For 
44.27 	purposes of this paragraph, family income is the total earned and unearned income of the 
44.28 	individual and the individual's spouse, if the spouse is enrolled in medical assistance and 
44.29 	also subject to the five percent limit on cost-sharing. This paragraph does not apply to 
44.30 	premiums charged to individuals described under section 256B.057, subdivision 9.; and
44.31 	(6) cost-sharing for prescription drugs and related medical supplies to treat chronic 
44.32 	disease must comply with the requirements of section 62Q.481.
45.1 	(b) Recipients of medical assistance are responsible for all co-payments and deductibles 
45.2 	in this subdivision.
45.3 	(c) Notwithstanding paragraph (b), the commissioner, through the contracting process 
45.4 	under sections 256B.69 and 256B.692, may allow managed care plans and county-based 
45.5 	purchasing plans to waive the family deductible under paragraph (a), clause (4). The value 
45.6 	of the family deductible shall not be included in the capitation payment to managed care 
45.7 	plans and county-based purchasing plans. Managed care plans and county-based purchasing 
45.8 	plans shall certify annually to the commissioner the dollar value of the family deductible.
45.9 	(d) Notwithstanding paragraph (b), the commissioner may waive the collection of the 
45.10 	family deductible described under paragraph (a), clause (4), from individuals and allow 
45.11 	long-term care and waivered service providers to assume responsibility for payment.
45.12 	(e) Notwithstanding paragraph (b), the commissioner, through the contracting process 
45.13 	under section 256B.0756 shall allow the pilot program in Hennepin County to waive 
45.14 	co-payments. The value of the co-payments shall not be included in the capitation payment 
45.15 	amount to the integrated health care delivery networks under the pilot program.

45.16 	EFFECTIVE DATE. This section is effective January 1, 2024.

45.17 	Sec. 38. Minnesota Statutes 2022, section 256L.03, subdivision 5, is amended to read:
45.18 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
45.19 	children under the age of 21 and to American Indians as defined in Code of Federal 
45.20 	Regulations, title 42, section 600.5.
45.21 	(b) The commissioner shall adjust co-payments, coinsurance, and deductibles for covered 
45.22 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
45.23 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
45.24 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
45.25 	this paragraph shall not be implemented prior to January 1, 2016.
45.26 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
45.27 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
45.28 	title 42, sections 600.510 and 600.520.
45.29 	(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic 
45.30 	disease must comply with the requirements of section 62Q.481.

45.31 	EFFECTIVE DATE. This section is effective January 1, 2024.

46.1 	Sec. 39. EVALUATION OF EXISTING STATUTORY HEALTH BENEFIT 
46.2 	MANDATES.
 46.3 	(a) The commissioner of commerce must evaluate existing Minnesota statutory provisions 
46.4 	that would constitute a state-required benefit included in Minnesota's EHB-benchmark plan, 
46.5 	as defined in Code of Federal Regulations, title 45, section 156.20, if the statutory provision 
46.6 	was offered as a legislative proposal on the date of enactment of this act.
46.7 	(b) The commissioner must conduct the evaluation using the process established under 
46.8 	Minnesota Statutes, section 62J.26, subdivision 2.
46.9 	(c) The commissioner may prioritize and determine the order in which statutory provisions 
46.10 	are evaluated under this section, provided that at least one statutory provision is evaluated 
46.11 	each year.
46.12 	(d) This section expires January 1, 2034.

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

46.14 	ARTICLE 3
46.15 	FINANCIAL INSTITUTIONS

46.16 	Section 1. Minnesota Statutes 2022, section 46.131, subdivision 11, is amended to read:
46.17 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
46.18 	account is created as a separate account in the special revenue fund. Earnings, including 
46.19 	interest, dividends, and any other earnings arising from account assets, must be credited to 
46.20 	the account.
46.21 	(b) The account consists of funds received from assessments under subdivision 7, 
46.22 	examination fees under subdivision 8, and funds received pursuant to subdivision 10 and 
46.23 	the following provisions: sections 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54, 
46.24 	subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; 48.61, subdivision 7, paragraph 
46.25 	(b); 49.36, subdivision 1; 52.203; 53B.09; 53B.11, subdivision 1; 53B.38; 53B.41; 53B.43;
46.26 	53C.02; 56.02; 58.10; 58A.045, subdivision 2; 59A.03; 216C.437, subdivision 12; 332A.04; 
46.27 	and 332B.04.
46.28 	(c) Funds in the account are annually appropriated to the commissioner of commerce 
46.29 	for activities under this section.

47.1 	Sec. 2. [53B.28] DEFINITIONS.
47.2 		Subdivision 1.Terms. For the purposes of this chapter, the terms defined in this section 
47.3 	have the meanings given them.
47.4 		Subd. 2.Acting in concert. "Acting in concert" means persons knowingly acting together 
47.5 	with a common goal of jointly acquiring control of a licensee, whether or not pursuant to 
47.6 	an express agreement.
47.7 		Subd. 3.Authorized delegate. "Authorized delegate" means a person a licensee 
47.8 	designates to engage in money transmission on behalf of the licensee.
47.9 		Subd. 4.Average daily money transmission liability. "Average daily money 
47.10 	transmission liability" means the amount of the licensee's outstanding money transmission 
47.11 	obligations in Minnesota at the end of each day in a given period of time, added together, 
47.12 	and divided by the total number of days in the given period of time. For purposes of 
47.13 	calculating average daily money transmission liability under this chapter for any licensee 
47.14 	required to do so, the given period of time shall be the quarters ending March 31, June 30, 
47.15 	September 30, and December 31.
47.16 		Subd. 5.Bank Secrecy Act. "Bank Secrecy Act" means the Bank Secrecy Act under 
47.17 	United States Code, title 31, section 5311, et seq., and the Bank Secrecy Act's implementing 
47.18 	regulations, as amended and recodified from time to time.
47.19 		Subd. 6.Closed loop stored value. "Closed loop stored value" means stored value that 
47.20 	is redeemable by the issuer only for a good or service provided by the issuer, the issuer's 
47.21 	affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the 
47.22 	extent required by applicable law to be redeemable in cash for the good or service's cash 
47.23 	value.
47.24 		Subd. 7.Control. "Control" means:
47.25 	(1) the power to vote, directly or indirectly, at least 25 percent of the outstanding voting 
47.26 	shares or voting interests of a licensee or person in control of a licensee;
47.27 	(2) the power to elect or appoint a majority of key individuals or executive officers, 
47.28 	managers, directors, trustees, or other persons exercising managerial authority of a person 
47.29 	in control of a licensee; or
47.30 	(3) the power to exercise, directly or indirectly, a controlling influence over the 
47.31 	management or policies of a licensee or person in control of a licensee.
48.1 		Subd. 8.Eligible rating. "Eligible rating" means a credit rating of any of the three highest 
48.2 	rating categories provided by an eligible rating service, whereby each category may include 
48.3 	rating category modifiers such as "plus" or "minus" or the equivalent for any other eligible 
48.4 	rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or 
48.5 	higher or the equivalent from any other eligible rating service. Short-term credit ratings are 
48.6 	deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent 
48.7 	from any other eligible rating service. In the event that ratings differ among eligible rating 
48.8 	services, the highest rating shall apply when determining whether a security bears an eligible 
48.9 	rating.
48.10 		Subd. 9.Eligible rating service. "Eligible rating service" means any Nationally 
48.11 	Recognized Statistical Rating Organization (NRSRO), as defined by the United States 
48.12 	Securities and Exchange Commission and any other organization designated by the 
48.13 	commissioner by rule or order.
48.14 		Subd. 10.Federally insured depository financial institution. "Federally insured 
48.15 	depository financial institution" means a bank, credit union, savings and loan association, 
48.16 	trust company, savings association, savings bank, industrial bank, or industrial loan company 
48.17 	organized under the laws of the United States or any state of the United States, when the 
48.18 	bank, credit union, savings and loan association, trust company, savings association, savings 
48.19 	bank, industrial bank, or industrial loan company has federally insured deposits.
48.20 		Subd. 11.In Minnesota. "In Minnesota" means at a physical location within the state 
48.21 	of Minnesota for a transaction requested in person. For a transaction requested electronically 
48.22 	or by telephone, the provider of money transmission may determine if the person requesting 
48.23 	the transaction is in Minnesota by relying on other information provided by the person 
48.24 	regarding the location of the individual's residential address or a business entity's principal 
48.25 	place of business or other physical address location, and any records associated with the 
48.26 	person that the provider of money transmission may have that indicate the location, including 
48.27 	but not limited to an address associated with an account.
48.28 		Subd. 12.Individual. "Individual" means a natural person.
48.29 		Subd. 13.Key individual. "Key individual" means any individual ultimately responsible 
48.30 	for establishing or directing policies and procedures of the licensee, including but not limited 
48.31 	to as an executive officer, manager, director, or trustee.
48.32 		Subd. 14.Licensee. "Licensee" means a person licensed under this chapter.
48.33 		Subd. 15.Material litigation. "Material litigation" means litigation that, according to 
48.34 	United States generally accepted accounting principles, is significant to a person's financial 
49.1 	health and would be required to be disclosed in the person's annual audited financial 
49.2 	statements, report to shareholders, or similar records.
49.3 		Subd. 16.Money. "Money" means a medium of exchange that is authorized or adopted 
49.4 	by the United States or a foreign government. Money includes a monetary unit of account 
49.5 	established by an intergovernmental organization or by agreement between two or more 
49.6 	governments.
49.7 		Subd. 17.Monetary value. "Monetary value" means a medium of exchange, whether 
49.8 	or not redeemable in money.
49.9 		Subd. 18.Money transmission. (a) "Money transmission" means:
49.10 	(1) selling or issuing payment instruments to a person located in this state;
49.11 	(2) selling or issuing stored value to a person located in this state; or
49.12 	(3) receiving money for transmission from a person located in this state.
49.13 	(b) Money includes payroll processing services. Money does not include the provision 
49.14 	solely of online or telecommunications services or network access.
49.15 		Subd. 19.Money services business accredited state or MSB accredited state. "Money 
49.16 	services businesses accredited state" or "MSB accredited state" means a state agency that 
49.17 	is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators 
49.18 	Association for money transmission licensing and supervision.
49.19 		Subd. 20.Multistate licensing process. "Multistate licensing process" means any 
49.20 	agreement entered into by and among state regulators relating to coordinated processing of 
49.21 	applications for money transmission licenses, applications for the acquisition of control of 
49.22 	a licensee, control determinations, or notice and information requirements for a change of 
49.23 	key individuals.
49.24 		Subd. 21.NMLS. "NMLS" means the Nationwide Multistate Licensing System and 
49.25 	Registry developed by the Conference of State Bank Supervisors and the American 
49.26 	Association of Residential Mortgage Regulators and owned and operated by the State 
49.27 	Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and 
49.28 	registration of persons in financial services industries.
49.29 		Subd. 22.Outstanding money transmission obligations. (a) "Outstanding money 
49.30 	transmission obligations" must be established and extinguished in accordance with applicable 
49.31 	state law and means:
50.1 	(1) any payment instrument or stored value issued or sold by the licensee to a person 
50.2 	located in the United States or reported as sold by an authorized delegate of the licensee to 
50.3 	a person that is located in the United States that has not yet been paid or refunded by or for 
50.4 	the licensee, or escheated in accordance with applicable abandoned property laws; or
50.5 	(2) any money received for transmission by the licensee or an authorized delegate in the 
50.6 	United States from a person located in the United States that has not been received by the 
50.7 	payee or refunded to the sender, or escheated in accordance with applicable abandoned 
50.8 	property laws.
50.9 	(b) For purposes of this subdivision, "in the United States" includes, to the extent 
50.10 	applicable, a person in any state, territory, or possession of the United States; the District 
50.11 	of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is 
50.12 	located in a foreign country.
50.13 		Subd. 23.Passive investor. "Passive investor" means a person that:
50.14 	(1) does not have the power to elect a majority of key individuals or executive officers, 
50.15 	managers, directors, trustees, or other persons exercising managerial authority of a person 
50.16 	in control of a licensee;
50.17 	(2) is not employed by and does not have any managerial duties of the licensee or person 
50.18 	in control of a licensee;
50.19 	(3) does not have the power to exercise, directly or indirectly, a controlling influence 
50.20 	over the management or policies of a licensee or person in control of a licensee; and
50.21 	(4) attests to clauses (1), (2), and (3), in a form and in a medium prescribed by the 
50.22 	commissioner, or commits to the passivity characteristics under clauses (1), (2), and (3) in 
50.23 	a written document.
50.24 		Subd. 24.Payment instrument. (a) "Payment instrument" means a written or electronic 
50.25 	check, draft, money order, traveler's check, or other written or electronic instrument for the 
50.26 	transmission or payment of money or monetary value, whether or not negotiable.
50.27 	(b) Payment instrument does not include stored value or any instrument that is: (1) 
50.28 	redeemable by the issuer only for goods or services provided by the issuer, the issuer's 
50.29 	affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the 
50.30 	extent required by applicable law to be redeemable in cash for its cash value; or (2) not sold 
50.31 	to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
50.32 		Subd. 25.Payroll processing services. "Payroll processing services" means receiving 
50.33 	money for transmission pursuant to a contract with a person to deliver wages or salaries, 
51.1 	make payment of payroll taxes to state and federal agencies, make payments relating to 
51.2 	employee benefit plans, or make distributions of other authorized deductions from wages 
51.3 	or salaries. The term payroll processing services does not include an employer performing 
51.4 	payroll processing services on the employer's own behalf or on behalf of the employer's 
51.5 	affiliate, or a professional employment organization subject to regulation under other 
51.6 	applicable state law.
51.7 		Subd. 26.Person. "Person" means any individual, general partnership, limited partnership, 
51.8 	limited liability company, corporation, trust, association, joint stock corporation, or other 
51.9 	corporate entity identified by the commissioner.
51.10 		Subd. 27.Receiving money for transmission or money received for 
51.11 	transmission. "Receiving money for transmission" or "money received for transmission" 
51.12 	means receiving money or monetary value in the United States for transmission within or 
51.13 	outside the United States by electronic or other means.
51.14 		Subd. 28.Stored value. (a) "Stored value" means monetary value representing a claim 
51.15 	against the issuer evidenced by an electronic or digital record, and that is intended and 
51.16 	accepted for use as a means of redemption for money or monetary value, or payment for 
51.17 	goods or services. Stored value includes but is not limited to prepaid access, as defined 
51.18 	under Code of Federal Regulations, title 31, part 1010.100, as amended or recodified from 
51.19 	time to time.
51.20 	(b) Notwithstanding this subdivision, stored value does not include: (1) a payment 
51.21 	instrument or closed loop stored value; or (2) stored value not sold to the public but issued 
51.22 	and distributed as part of a loyalty, rewards, or promotional program.
51.23 		Subd. 29.Tangible net worth. "Tangible net worth" means the aggregate assets of a 
51.24 	licensee excluding all intangible assets, less liabilities, as determined in accordance with 
51.25 	United States generally accepted accounting principles.

51.26 	Sec. 3. [53B.29] EXEMPTIONS.
51.27 	This chapter does not apply to:
51.28 	(1) an operator of a payment system, to the extent the operator of a payment system 
51.29 	provides processing, clearing, or settlement services between or among persons exempted 
51.30 	by this section or licensees in connection with wire transfers, credit card transactions, debit 
51.31 	card transactions, stored-value transactions, automated clearing house transfers, or similar 
51.32 	funds transfers;
52.1 	(2) a person appointed as an agent of a payee to collect and process a payment from a 
52.2 	payor to the payee for goods or services, other than money transmission itself, provided to 
52.3 	the payor by the payee, provided that:
52.4 	(i) there exists a written agreement between the payee and the agent directing the agent 
52.5 	to collect and process payments from payors on the payee's behalf;
52.6 	(ii) the payee holds the agent out to the public as accepting payments for goods or services 
52.7 	on the payee's behalf; and
52.8 	(iii) payment for the goods and services is treated as received by the payee upon receipt 
52.9 	by the agent so that the payor's obligation is extinguished and there is no risk of loss to the 
52.10 	payor if the agent fails to remit the funds to the payee;
52.11 	(3) a person that acts as an intermediary by processing payments between an entity that 
52.12 	has directly incurred an outstanding money transmission obligation to a sender, and the 
52.13 	sender's designated recipient, provided that the entity:
52.14 	(i) is properly licensed or exempt from licensing requirements under this chapter;
52.15 	(ii) provides a receipt, electronic record, or other written confirmation to the sender 
52.16 	identifying the entity as the provider of money transmission in the transaction; and
52.17 	(iii) bears sole responsibility to satisfy the outstanding money transmission obligation 
52.18 	to the sender, including the obligation to make the sender whole in connection with any 
52.19 	failure to transmit the funds to the sender's designated recipient;
52.20 	(4) the United States; a department, agency, or instrumentality of the United States; or 
52.21 	an agent of the United States;
52.22 	(5) money transmission by the United States Postal Service or by an agent of the United 
52.23 	States Postal Service;
52.24 	(6) a state; county; city; any other governmental agency, governmental subdivision, or 
52.25 	instrumentality of a state; or the state's agent;
52.26 	(7) a federally insured depository financial institution; bank holding company; office of 
52.27 	an international banking corporation; foreign bank that establishes a federal branch pursuant 
52.28 	to the International Bank Act, United States Code, title 12, section 3102, as amended or 
52.29 	recodified from time to time; corporation organized pursuant to the Bank Service Corporation 
52.30 	Act, United States Code, title 12, sections 1861 to 1867, as amended or recodified from 
52.31 	time to time; or corporation organized under the Edge Act, United States Code, title 12, 
52.32 	sections 611 to 633, as amended or recodified from time to time;
53.1 	(8) electronic funds transfer of governmental benefits for a federal, state, county, or 
53.2 	governmental agency by a contractor on behalf of the United States or a department, agency, 
53.3 	or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or 
53.4 	instrumentality thereof;
53.5 	(9) a board of trade designated as a contract market under the federal Commodity 
53.6 	Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from 
53.7 	time to time; or a person that in the ordinary course of business provides clearance and 
53.8 	settlement services for a board of trade to the extent of its operation as or for a board;
53.9 	(10) a registered futures commission merchant under the federal commodities laws, to 
53.10 	the extent of the registered futures commission merchant's operation as a merchant;
53.11 	(11) a person registered as a securities broker-dealer under federal or state securities 
53.12 	laws, to the extent of the person's operation as a securities broker-dealer;
53.13 	(12) an individual employed by a licensee, authorized delegate, or any person exempted 
53.14 	from the licensing requirements under this chapter when acting within the scope of 
53.15 	employment and under the supervision of the licensee, authorized delegate, or exempted 
53.16 	person as an employee and not as an independent contractor;
53.17 	(13) a person expressly appointed as a third-party service provider to or agent of an 
53.18 	entity exempt under clause (7), solely to the extent that:
53.19 	(i) the service provider or agent is engaging in money transmission on behalf of and 
53.20 	pursuant to a written agreement with the exempt entity that sets forth the specific functions 
53.21 	that the service provider or agent is to perform; and
53.22 	(ii) the exempt entity assumes all risk of loss and all legal responsibility for satisfying 
53.23 	the outstanding money transmission obligations owed to purchasers and holders of the 
53.24 	outstanding money transmission obligations upon receipt of the purchaser's or holder's 
53.25 	money or monetary value by the service provider or agent; or
53.26 	(14) a person exempt by regulation or order if the commissioner finds that (i) the 
53.27 	exemption is in the public interest, and (ii) the regulation of the person is not necessary for 
53.28 	the purposes of this chapter.

54.1 	Sec. 4. [53B.30] AUTHORITY TO REQUIRE DEMONSTRATION OF 
54.2 	EXEMPTION.
54.3 	The commissioner may require any person that claims to be exempt from licensing under 
54.4 	section 53B.29 to provide to the commissioner information and documentation that 
54.5 	demonstrates the person qualifies for any claimed exemption.

54.6 	Sec. 5. [53B.31] IMPLEMENTATION.
54.7 		Subdivision 1.General authority. In order to carry out the purposes of this chapter, the 
54.8 	commissioner may, subject to section 53B.32, paragraphs (a) and (b):
54.9 	(1) enter into agreements or relationships with other government officials or federal and 
54.10 	state regulatory agencies and regulatory associations in order to (i) improve efficiencies 
54.11 	and reduce regulatory burden by standardizing methods or procedures, and (ii) share 
54.12 	resources, records, or related information obtained under this chapter;
54.13 	(2) use, hire, contract, or employ analytical systems, methods, or software to examine 
54.14 	or investigate any person subject to this chapter;
54.15 	(3) accept from other state or federal government agencies or officials any licensing, 
54.16 	examination, or investigation reports made by the other state or federal government agencies 
54.17 	or officials; and
54.18 	(4) accept audit reports made by an independent certified public accountant or other 
54.19 	qualified third-party auditor for an applicant or licensee and incorporate the audit report in 
54.20 	any report of examination or investigation.
54.21 		Subd. 2.Administrative authority. The commissioner is granted broad administrative 
54.22 	authority to: (1) administer, interpret, and enforce this chapter; (2) adopt regulations to 
54.23 	implement this chapter; and (3) recover the costs incurred to administer and enforce this 
54.24 	chapter by imposing and collecting proportionate and equitable fees and costs associated 
54.25 	with applications, examinations, investigations, and other actions required to achieve the 
54.26 	purpose of this chapter.

54.27 	Sec. 6. [53B.32] CONFIDENTIALITY.
54.28 	(a) All information or reports obtained by the commissioner contained in or related to 
54.29 	an examination that is prepared by, on behalf of, or for the use of the commissioner are 
54.30 	confidential and are not subject to disclosure under section 46.07.
55.1 	(b) The commissioner may disclose information not otherwise subject to disclosure 
55.2 	under paragraph (a) to representatives of state or federal agencies pursuant to section 53B.31, 
55.3 	subdivision 1.
55.4 	(c) This section does not prohibit the commissioner from disclosing to the public a list 
55.5 	of all licensees or the aggregated financial or transactional data concerning those licensees.

55.6 	Sec. 7. [53B.33] SUPERVISION.
55.7 	(a) The commissioner may conduct an examination or investigation of a licensee or 
55.8 	authorized delegate or otherwise take independent action authorized by this chapter, or by 
55.9 	a rule adopted or order issued under this chapter, as reasonably necessary or appropriate to 
55.10 	administer and enforce this chapter, rules implementing this chapter, and other applicable 
55.11 	law, including the Bank Secrecy Act and the USA PATRIOT Act, Public Law 107-56. The 
55.12 	commissioner may:
55.13 	(1) conduct an examination either on site or off site as the commissioner may reasonably 
55.14 	require;
55.15 	(2) conduct an examination in conjunction with an examination conducted by 
55.16 	representatives of other state agencies or agencies of another state or of the federal 
55.17 	government;
55.18 	(3) accept the examination report of another state agency or an agency of another state 
55.19 	or of the federal government, or a report prepared by an independent accounting firm, which 
55.20 	on being accepted is considered for all purposes as an official report of the commissioner; 
55.21 	and
55.22 	(4) summon and examine under oath a key individual or employee of a licensee or 
55.23 	authorized delegate and require the person to produce records regarding any matter related 
55.24 	to the condition and business of the licensee or authorized delegate.
55.25 	(b) A licensee or authorized delegate must provide, and the commissioner has full and 
55.26 	complete access to, all records the commissioner may reasonably require to conduct a 
55.27 	complete examination. The records must be provided at the location and in the format 
55.28 	specified by the commissioner. The commissioner may use multistate record production 
55.29 	standards and examination procedures when the standards reasonably achieve the 
55.30 	requirements of this paragraph.
55.31 	(c) Unless otherwise directed by the commissioner, a licensee must pay all costs 
55.32 	reasonably incurred in connection with an examination of the licensee or the licensee's 
55.33 	authorized delegates.

56.1 	Sec. 8. [53B.34] NETWORKED SUPERVISION.
56.2 	(a) To efficiently and effectively administer and enforce this chapter and to minimize 
56.3 	regulatory burden, the commissioner is authorized to participate in multistate supervisory 
56.4 	processes established between states and coordinated through the Conference of State Bank 
56.5 	Supervisors, the Money Transmitter Regulators Association, and the affiliates and successors 
56.6 	of the Conference of State Bank Supervisors and the Money Transmitter Regulators 
56.7 	Association for all licensees that hold licenses in this state and other states. As a participant 
56.8 	in multistate supervision, the commissioner may:
56.9 	(1) cooperate, coordinate, and share information with other state and federal regulators 
56.10 	in accordance with section 53B.32;
56.11 	(2) enter into written cooperation, coordination, or information-sharing contracts or 
56.12 	agreements with organizations the membership of which is made up of state or federal 
56.13 	governmental agencies; and
56.14 	(3) cooperate, coordinate, and share information with organizations the membership of 
56.15 	which is made up of state or federal governmental agencies, provided that the organizations 
56.16 	agree in writing to maintain the confidentiality and security of the shared information in 
56.17 	accordance with section 53B.32.
56.18 	(b) The commissioner is prohibited from waiving, and nothing in this section constitutes 
56.19 	a waiver of, the commissioner's authority to conduct an examination or investigation or 
56.20 	otherwise take independent action authorized by this chapter, or a rule adopted or order 
56.21 	issued under this chapter, to enforce compliance with applicable state or federal law.
56.22 	(c) A joint examination or investigation, or acceptance of an examination or investigation 
56.23 	report, does not waive an examination fee provided for in this chapter.

56.24 	Sec. 9. [53B.35] RELATIONSHIP TO FEDERAL LAW.
56.25 	(a) In the event state money transmission jurisdiction is conditioned on a federal law, 
56.26 	any inconsistencies between a provision of this chapter and the federal law governing money 
56.27 	transmission is governed by the applicable federal law to the extent of the inconsistency.
56.28 	(b) In the event of any inconsistencies between this chapter and a federal law that governs 
56.29 	pursuant to paragraph (a), the commissioner may provide interpretive guidance that:
56.30 	(1) identifies the inconsistency; and
56.31 	(2) identifies the appropriate means of compliance with federal law.

57.1 	Sec. 10. [53B.36] LICENSE REQUIRED.
57.2 	(a) A person is prohibited from engaging in the business of money transmission, or 
57.3 	advertising, soliciting, or representing that the person provides money transmission, unless 
57.4 	the person is licensed under this chapter.
57.5 	(b) Paragraph (a) does not apply to:
57.6 	(1) a person that is an authorized delegate of a person licensed under this chapter acting 
57.7 	within the scope of authority conferred by a written contract with the licensee; or
57.8 	(2) a person that is exempt under section 53B.29 and does not engage in money 
57.9 	transmission outside the scope of the exemption.
57.10 	(c) A license issued under section 53B.40 is not transferable or assignable.

57.11 	Sec. 11. [53B.37] CONSISTENT STATE LICENSING.
57.12 	(a) To establish consistent licensing between Minnesota and other states, the 
57.13 	commissioner is authorized to:
57.14 	(1) implement all licensing provisions of this chapter in a manner that is consistent with 
57.15 	(i) other states that have adopted substantially similar licensing requirements, or (ii) multistate 
57.16 	licensing processes; and
57.17 	(2) participate in nationwide protocols for licensing cooperation and coordination among 
57.18 	state regulators, provided that the protocols are consistent with this chapter.
57.19 	(b) In order to fulfill the purposes of this chapter, the commissioner is authorized to 
57.20 	establish relationships or contracts with NMLS or other entities designated by NMLS to 
57.21 	enable the commissioner to:
57.22 	(1) collect and maintain records;
57.23 	(2) coordinate multistate licensing processes and supervision processes;
57.24 	(3) process fees; and
57.25 	(4) facilitate communication between the commissioner and licensees or other persons 
57.26 	subject to this chapter.
57.27 	(c) The commissioner is authorized to use NMLS for all aspects of licensing in accordance 
57.28 	with this chapter, including but not limited to license applications, applications for 
57.29 	acquisitions of control, surety bonds, reporting, criminal history background checks, credit 
57.30 	checks, fee processing, and examinations.
58.1 	(d) The commissioner is authorized to use NMLS forms, processes, and functions in 
58.2 	accordance with this chapter. If NMLS does not provide functionality, forms, or processes 
58.3 	for a requirement under this chapter, the commissioner is authorized to implement the 
58.4 	requirements in a manner that facilitates uniformity with respect to licensing, supervision, 
58.5 	reporting, and regulation of licensees which are licensed in multiple jurisdictions.
58.6 	(e) For the purpose of participating in the NMLS registry, the commissioner is authorized 
58.7 	to, by rule or order: (1) waive or modify, in whole or in part, any or all of the requirements; 
58.8 	and (2) establish new requirements as reasonably necessary to participate in the NMLS 
58.9 	registry.

58.10 	Sec. 12. [53B.38] APPLICATION FOR LICENSE.
58.11 	(a) An applicant for a license must apply in a form and in a medium as prescribed by 
58.12 	the commissioner. The application must state or contain, as applicable:
58.13 	(1) the legal name and residential and business addresses of the applicant and any 
58.14 	fictitious or trade name used by the applicant in conducting business;
58.15 	(2) a list of any criminal convictions of the applicant and any material litigation in which 
58.16 	the applicant has been involved in the ten-year period next preceding the submission of the 
58.17 	application;
58.18 	(3) a description of any money transmission previously provided by the applicant and 
58.19 	the money transmission that the applicant seeks to provide in this state;
58.20 	(4) a list of the applicant's proposed authorized delegates and the locations in this state 
58.21 	where the applicant and the applicant's authorized delegates propose to engage in money 
58.22 	transmission;
58.23 	(5) a list of other states in which the applicant is licensed to engage in money transmission 
58.24 	and any license revocations, suspensions, or other disciplinary action taken against the 
58.25 	applicant in another state;
58.26 	(6) information concerning any bankruptcy or receivership proceedings affecting the 
58.27 	licensee or a person in control of a licensee;
58.28 	(7) a sample form of contract for authorized delegates, if applicable;
58.29 	(8) a sample form of payment instrument or stored value, as applicable;
58.30 	(9) the name and address of any federally insured depository financial institution through 
58.31 	which the applicant plans to conduct money transmission; and
59.1 	(10) any other information the commissioner or NMLS reasonably requires with respect 
59.2 	to the applicant.
59.3 	(b) If an applicant is a corporation, limited liability company, partnership, or other legal 
59.4 	entity, the applicant must also provide:
59.5 	(1) the date of the applicant's incorporation or formation and state or country of 
59.6 	incorporation or formation;
59.7 	(2) if applicable, a certificate of good standing from the state or country in which the 
59.8 	applicant is incorporated or formed;
59.9 	(3) a brief description of the structure or organization of the applicant, including any 
59.10 	parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly 
59.11 	traded;
59.12 	(4) the legal name, any fictitious or trade name, all business and residential addresses, 
59.13 	and the employment, as applicable, in the ten-year period next preceding the submission of 
59.14 	the application of each key individual and person in control of the applicant;
59.15 	(5) a list of any criminal convictions and material litigation in which a person in control 
59.16 	of the applicant that is not an individual has been involved in the ten-year period preceding 
59.17 	the submission of the application;
59.18 	(6) a copy of audited financial statements of the applicant for the most recent fiscal year 
59.19 	and for the two-year period next preceding the submission of the application or, if the 
59.20 	commissioner deems acceptable, certified unaudited financial statements for the most recent 
59.21 	fiscal year or other period acceptable to the commissioner;
59.22 	(7) a certified copy of unaudited financial statements of the applicant for the most recent 
59.23 	fiscal quarter;
59.24 	(8) if the applicant is a publicly traded corporation, a copy of the most recent report filed 
59.25 	with the United States Securities and Exchange Commission under section 13 of the federal 
59.26 	Securities Exchange Act of 1934, United States Code, title 15, section 78m, as amended or 
59.27 	recodified from time to time;
59.28 	(9) if the applicant is a wholly owned subsidiary of:
59.29 	(i) a corporation publicly traded in the United States, a copy of audited financial 
59.30 	statements for the parent corporation for the most recent fiscal year or a copy of the parent 
59.31 	corporation's most recent report filed under section 13 of the Securities Exchange Act of 
60.1 	1934, United States Code, title 15, section 78m, as amended or recodified from time to time; 
60.2 	or
60.3 	(ii) a corporation publicly traded outside the United States, a copy of similar 
60.4 	documentation filed with the regulator of the parent corporation's domicile outside the 
60.5 	United States;
60.6 	(10) the name and address of the applicant's registered agent in this state; and
60.7 	(11) any other information the commissioner reasonably requires with respect to the 
60.8 	applicant.
60.9 	(c) A nonrefundable application fee of $4,000 must accompany an application for a 
60.10 	license under this section.
60.11 	(d) The commissioner may: (1) waive one or more requirements of paragraphs (a) and 
60.12 	(b); or (2) permit an applicant to submit other information in lieu of the required information.

60.13 	Sec. 13. [53B.39] INFORMATION REQUIREMENTS; CERTAIN INDIVIDUALS.
60.14 		Subdivision 1.Individuals with or seeking control. Any individual in control of a 
60.15 	licensee or applicant, any individual that seeks to acquire control of a licensee, and each 
60.16 	key individual must furnish to the commissioner through NMLS:
60.17 	(1) the individual's fingerprints for submission to the Federal Bureau of Investigation 
60.18 	and the commissioner for a national criminal history background check, unless the person 
60.19 	currently resides outside of the United States and has resided outside of the United States 
60.20 	for the last ten years; and
60.21 	(2) personal history and business experience in a form and in a medium prescribed by 
60.22 	the commissioner, to obtain:
60.23 	(i) an independent credit report from a consumer reporting agency;
60.24 	(ii) information related to any criminal convictions or pending charges; and
60.25 	(iii) information related to any regulatory or administrative action and any civil litigation 
60.26 	involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach 
60.27 	of fiduciary duty, or breach of contract.
60.28 		Subd. 2.Individuals having resided outside the United States. (a) If an individual 
60.29 	has resided outside of the United States at any time in the last ten years, the individual must 
60.30 	also provide an investigative background report prepared by an independent search firm 
60.31 	that meets the requirements of this subdivision.
61.1 	(b) At a minimum, the search firm must:
61.2 	(1) demonstrate that the search firm has sufficient knowledge, resources, and employs 
61.3 	accepted and reasonable methodologies to conduct the research of the background report; 
61.4 	and
61.5 	(2) not be affiliated with or have an interest with the individual the search firm is 
61.6 	researching.
61.7 	(c) At a minimum, the investigative background report must be written in English  and 
61.8 	must contain:
61.9 	(1) if available in the individual's current jurisdiction of residency, a comprehensive 
61.10 	credit report, or any equivalent information obtained or generated by the independent search 
61.11 	firm to accomplish a credit report, including a search of the court data in the countries, 
61.12 	provinces, states, cities, towns, and contiguous areas where the individual resided and 
61.13 	worked;
61.14 	(2) criminal records information for the past ten years, including but not limited to 
61.15 	felonies, misdemeanors, or similar convictions for violations of law in the countries, 
61.16 	provinces, states, cities, towns, and contiguous areas where the individual resided and 
61.17 	worked;
61.18 	(3) employment history;
61.19 	(4) media history, including an electronic search of national and local publications, wire 
61.20 	services, and business applications; and
61.21 	(5) financial services-related regulatory history, including but not limited to money 
61.22 	transmission, securities, banking, consumer finance, insurance, and mortgage-related 
61.23 	industries.

61.24 	Sec. 14. [53B.40] LICENSE ISSUANCE.
61.25 	(a) When an application for an original license under this chapter includes all of the 
61.26 	items and addresses all of the matters that are required, the application is complete and the 
61.27 	commissioner must promptly notify the applicant in a record of the date on which the 
61.28 	application is determined to be complete.
61.29 	(b) The commissioner's determination that an application is complete and accepted for 
61.30 	processing means only that the application, on the application's face, appears to include all 
61.31 	of the items, including the criminal background check response from the Federal Bureau 
61.32 	of Investigation, and address all of the matters that are required. The commissioner's 
62.1 	determination that an application is complete is not an assessment of the substance of the 
62.2 	application or of the sufficiency of the information provided.
62.3 	(c) When an application is filed and considered complete under this section, the 
62.4 	commissioner must investigate the applicant's financial condition and responsibility, financial 
62.5 	and business experience, character, and general fitness. The commissioner may conduct an 
62.6 	investigation of the applicant, the reasonable cost of which the applicant must pay. The 
62.7 	commissioner must issue a license to an applicant under this section if the commissioner 
62.8 	finds:
62.9 	(1) the applicant has complied with sections 53B.38 and 53B.39; and
62.10 	(2) the financial condition and responsibility; financial and business experience, 
62.11 	competence, character, and general fitness of the applicant; and the competence, experience, 
62.12 	character, and general fitness of the key individuals and persons in control of the applicant 
62.13 	indicate that it is in the interest of the public to permit the applicant to engage in money 
62.14 	transmission.
62.15 	(d) If an applicant avails itself of or is otherwise subject to a multistate licensing process:
62.16 	(1) the commissioner is authorized to accept the investigation results of a lead 
62.17 	investigative state for the purposes of paragraph (c); or
62.18 	(2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate 
62.19 	the applicant pursuant to paragraph (c) and the time frames established by agreement through 
62.20 	the multistate licensing process, provided that the time frame complies with the application 
62.21 	review period provided under paragraph (e).
62.22 	(e) The commissioner must approve or deny the application within 120 days after the 
62.23 	date the application is deemed complete. If the application is not approved or denied within 
62.24 	120 days after the completion date, the application is approved and the license takes effect 
62.25 	on the first business day after the 120-day period expires.
62.26 	(f) The commissioner must issue a formal written notice of the denial of a license 
62.27 	application within 30 days of the date the decision to deny the application is made. The 
62.28 	commissioner must set forth in the notice of denial the specific reasons for the denial of the 
62.29 	application. An applicant whose application is denied by the commissioner under this 
62.30 	paragraph may appeal within 30 days of the date the written notice of the denial is received. 
62.31 	The commissioner must set a hearing date that is not later than 60 days after service of the 
62.32 	response, unless a later date is set with the consent of the denied applicant.
63.1 	(g) The initial license term begins on the day the application is approved. The license 
63.2 	expires on December 31 of the year in which the license term began, unless the initial license 
63.3 	date is between November 1 and December 31, in which case the initial license term runs 
63.4 	through December 31 of the following year. If a license is approved between November 1 
63.5 	and December 31, the applicant is subject to the renewal fee under section 53B.31, paragraph 
63.6 	(a).

63.7 	Sec. 15. [53B.41] LICENSE RENEWAL.
63.8 	(a) A license under this chapter must be renewed annually. An annual renewal fee of 
63.9 	$2,500 must be paid no more than 60 days before the license expires. The renewal term is 
63.10 	a period of one year and begins on January 1 each year after the initial license term. The 
63.11 	renewal term expires on December 31 of the year the renewal term begins.
63.12 	(b) A licensee must submit a renewal report with the renewal fee, in a form and in a 
63.13 	medium prescribed by the commissioner. The renewal report must state or contain a 
63.14 	description of each material change in information submitted by the licensee in the licensee's 
63.15 	original license application that has not been previously reported to the commissioner.
63.16 	(c) The commissioner may grant an extension of the renewal date for good cause.
63.17 	(d) The commissioner is authorized to use the NMLS to process license renewals, 
63.18 	provided that the NMLS functionality is consistent with this section.

63.19 	Sec. 16. [53B.42] MAINTENANCE OF LICENSE.
63.20 	(a) If a licensee does not continue to meet the qualifications or satisfy the requirements 
63.21 	that apply to an applicant for a new money transmission license, the commissioner may 
63.22 	suspend or revoke the licensee's license in accordance with the procedures established by 
63.23 	this chapter or other applicable state law for license suspension or revocation.
63.24 	(b) An applicant for a money transmission license must demonstrate that the applicant 
63.25 	meets or will meet, and a money transmission licensee must at all times meet, the 
63.26 	requirements in sections 53B.59 to 53B.61.

63.27 	Sec. 17. [53B.43] ACQUISITION OF CONTROL.
63.28 	(a) Any person, or group of persons acting in concert, seeking to acquire control of a 
63.29 	licensee must obtain the commissioner's written approval before acquiring control. An 
63.30 	individual is not deemed to acquire control of a licensee and is not subject to these acquisition 
64.1 	of control provisions when that individual becomes a key individual in the ordinary course 
64.2 	of business.
64.3 	(b) For the purpose of this section, a person is presumed to exercise a controlling influence 
64.4 	when the person holds the power to vote, directly or indirectly, at least ten percent of the 
64.5 	outstanding voting shares or voting interests of a licensee or person in control of a licensee. 
64.6 	A person presumed to exercise a controlling influence as defined by this subdivision can 
64.7 	rebut the presumption of control if the person is a passive investor.
64.8 	(c) For purposes of determining the percentage of a person controlled by any other 
64.9 	person, the person's interest must be aggregated with the interest of any other immediate 
64.10 	family member, including the person's spouse, parents, children, siblings, mothers- and 
64.11 	fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other person 
64.12 	who shares the person's home.
64.13 	(d) A person, or group of persons acting in concert, seeking to acquire control of a 
64.14 	licensee must, in cooperation with the licensee:
64.15 	(1) submit an application in a form and in a medium prescribed by the commissioner; 
64.16 	and
64.17 	(2) submit a nonrefundable fee of $4,000 with the request for approval.
64.18 	(e) Upon request, the commissioner may permit a licensee or the person, or group of 
64.19 	persons acting in concert, to submit some or all information required by the commissioner 
64.20 	pursuant to paragraph (d), clause (1), without using NMLS.
64.21 	(f) The application required by paragraph (d), clause (1), must include information 
64.22 	required by section 53B.39 for any new key individuals that have not previously completed 
64.23 	the requirements of section 53B.39 for a licensee.
64.24 	(g) When an application for acquisition of control under this section appears to include 
64.25 	all of the items and address all of the matters that are required, the application is considered 
64.26 	complete and the commissioner must promptly notify the applicant in a record of the date 
64.27 	on which the application was determined to be complete.
64.28 	(h) The commissioner must approve or deny the application within 60 days after the 
64.29 	completion date. If the application is not approved or denied within 60 days after the 
64.30 	completion date, the application is approved and the person, or group of persons acting in 
64.31 	concert, are not prohibited from acquiring control. The commissioner may extend the 
64.32 	application period for good cause.
65.1 	(i) The commissioner's determination that an application is complete and is accepted for 
65.2 	processing means only that the application, on the application's face, appears to include all 
65.3 	of the items and address all of the matters that are required. The commissioner's determination 
65.4 	that an application is complete is not an assessment of the application's substance or of the 
65.5 	sufficiency of the information provided.
65.6 	(j) When an application is filed and considered complete under paragraph (g), the 
65.7 	commissioner must investigate the financial condition and responsibility; the financial and 
65.8 	business experience; character; and the general fitness of the person, or group of persons 
65.9 	acting in concert, seeking to acquire control. The commissioner must approve an acquisition 
65.10 	of control under this section if the commissioner finds:
65.11 	(1) the requirements of paragraphs (d) and (f) have been met, as applicable; and
65.12 	(2) the financial condition and responsibility, financial and business experience, 
65.13 	competence, character, and general fitness of the person, or group of persons acting in 
65.14 	concert, seeking to acquire control; and the competence, experience, character, and general 
65.15 	fitness of the key individuals and persons that control the licensee after the acquisition of 
65.16 	control indicate that it is in the interest of the public to permit the person, or group of persons 
65.17 	acting in concert, to control the licensee.
65.18 	(k) If an applicant avails itself of or is otherwise subject to a multistate licensing process:
65.19 	(1) the commissioner is authorized to accept the investigation results of a lead 
65.20 	investigative state for the purposes of paragraph (j); or
65.21 	(2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate 
65.22 	the applicant under paragraph (j) and consistent with the time frames established by 
65.23 	agreement through the multistate licensing process.
65.24 	(l) The commissioner must issue a formal written notice of the denial of an application 
65.25 	to acquire control. The commissioner must set forth in the notice of denial the specific 
65.26 	reasons the application was denied. An applicant whose application is denied by the 
65.27 	commissioner under this paragraph may appeal the denial within 30 days of the date the 
65.28 	written notice of the denial is received. Chapter 14 applies to appeals under this paragraph.
65.29 	(m) Paragraphs (a) and (d) do not apply to:
65.30 	(1) a person that acts as a proxy for the sole purpose of voting at a designated meeting 
65.31 	of the shareholders or holders of voting shares or voting interests of a licensee or a person 
65.32 	in control of a licensee;
65.33 	(2) a person that acquires control of a licensee by devise or descent;
66.1 	(3) a person that acquires control of a licensee as a personal representative, custodian, 
66.2 	guardian, conservator, or trustee, or as an officer appointed by a court of competent 
66.3 	jurisdiction or by operation of law;
66.4 	(4) a person that is exempt under section 53B.29, clause (7);
66.5 	(5) a person that the commissioner determines is not subject to paragraph (a), based on 
66.6 	the public interest;
66.7 	(6) a public offering of securities of a licensee or a person in control of a licensee; or
66.8 	(7) an internal reorganization of a person controlling the licensee, where the ultimate 
66.9 	person controlling the licensee remains the same.
66.10 	(n) A person identified in paragraph (m), clause (2), (3), (4), or (6), that is cooperating 
66.11 	with the licensee must notify the commissioner within 15 days of the date the acquisition 
66.12 	of control occurs.
66.13 	(o) Paragraphs (a) and (d) do not apply to a person that has complied with and received 
66.14 	approval to engage in money transmission under this chapter, or that was identified as a 
66.15 	person in control in a prior application filed with and approved by the commissioner or by 
66.16 	another state pursuant to a multistate licensing process, provided that:
66.17 	(1) the person has not had a license revoked or suspended or controlled a licensee that 
66.18 	has had a license revoked or suspended while the person was in control of the licensee in 
66.19 	the previous five years;
66.20 	(2) if the person is a licensee, the person is well managed and has received at least a 
66.21 	satisfactory rating for compliance at the person's most recent examination by an 
66.22 	MSB-accredited state if a rating was given;
66.23 	(3) the licensee to be acquired is projected to meet the requirements of sections 53B.59 
66.24 	to 53B.61 after the acquisition of control is completed, and if the person acquiring control 
66.25 	is a licensee, the acquiring licensee is also projected to meet the requirements of sections 
66.26 	53B.59 to 53B.61 after the acquisition of control is completed;
66.27 	(4) the licensee to be acquired does not implement any material changes to the acquired 
66.28 	licensee's business plan as a result of the acquisition of control, and if the person acquiring 
66.29 	control is a licensee, the acquiring licensee does not implement any material changes to the 
66.30 	acquiring licensee's business plan as a result of the acquisition of control; and
67.1 	(5) the person provides notice of the acquisition in cooperation with the licensee and 
67.2 	attests to clauses (1), (2), (3), and (4) in a form and in a medium prescribed by the 
67.3 	commissioner.
67.4 	(p) If the notice under paragraph (o), clause (5), is not disapproved within 30 days after 
67.5 	the date on which the notice was determined to be complete, the notice is deemed approved.
67.6 	(q) Before filing an application for approval to acquire control of a licensee, a person 
67.7 	may request in writing a determination from the commissioner as to whether the person 
67.8 	would be considered a person in control of a licensee upon consummation of a proposed 
67.9 	transaction. If the commissioner determines that the person would not be a person in control 
67.10 	of a licensee, the proposed person and transaction is not subject to paragraphs (a) and (d).
67.11 	(r) If a multistate licensing process includes a determination pursuant to paragraph (q) 
67.12 	and an applicant avails itself or is otherwise subject to the multistate licensing process:
67.13 	(1) the commissioner is authorized to accept the control determination of a lead 
67.14 	investigative state with sufficient staffing, expertise, and minimum standards for the purposes 
67.15 	of paragraph (q); or
67.16 	(2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate 
67.17 	the applicant under paragraph (q) and consistent with the time frames established by 
67.18 	agreement through the multistate licensing process.

67.19 	Sec. 18. [53B.44] CHANGE OF KEY INDIVIDUALS; NOTICE AND 
67.20 	INFORMATION REQUIREMENTS.
67.21 	(a) A licensee that adds or replaces any key individual must:
67.22 	(1) provide notice, in a manner prescribed by the commissioner, within 15 days after 
67.23 	the effective date of the key individual's appointment; and
67.24 	(2) provide the information required under section 53B.39 within 45 days of the effective 
67.25 	date of the key individual's appointment.
67.26 	(b) Within 90 days of the date on which the notice provided under section 53B.44, 
67.27 	paragraph (a), was determined to be complete, the commissioner may issue a notice of 
67.28 	disapproval of a key individual if the commissioner finds that the competence, business 
67.29 	experience, character, or integrity of the individual is not in the best interests of the public 
67.30 	or the customers of the licensee.
67.31 	(c) A notice of disapproval must contain a statement of the basis for disapproval and 
67.32 	must be sent to the licensee and the disapproved individual. A licensee may appeal a notice 
68.1 	of disapproval pursuant to chapter 14 within 30 days of the date the notice of disapproval 
68.2 	is received.
68.3 	(d) If the notice provided under paragraph (a) is not disapproved within 90 days after 
68.4 	the date on which the notice was determined to be complete, the key individual is deemed 
68.5 	approved.
68.6 	(e) If a multistate licensing process includes a key individual notice review and 
68.7 	disapproval process under this section and the licensee avails itself of or is otherwise subject 
68.8 	to the multistate licensing process:
68.9 	(1) the commissioner is authorized to accept the determination of another state if the 
68.10 	investigating state has sufficient staffing, expertise, and minimum standards for the purposes 
68.11 	of this section; or
68.12 	(2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate 
68.13 	the applicant under paragraph (b) and the time frames established by agreement through 
68.14 	the multistate licensing process.

68.15 	Sec. 19. [53B.45] REPORT OF CONDITION.
68.16 	(a) Each licensee must submit a report of condition within 45 days of the end of the 
68.17 	calendar quarter, or within any extended time the commissioner prescribes.
68.18 	(b) The report of condition must include:
68.19 	(1) financial information at the licensee level;
68.20 	(2) nationwide and state-specific money transmission transaction information in every 
68.21 	jurisdiction in the United States where the licensee is licensed to engage in money 
68.22 	transmission;
68.23 	(3) a permissible investments report;
68.24 	(4) transaction destination country reporting for money received for transmission, if 
68.25 	applicable; and
68.26 	(5) any other information the commissioner reasonably requires with respect to the 
68.27 	licensee.
68.28 	(c) The commissioner is authorized to use NMLS to submit the report required under 
68.29 	paragraph (a).
68.30 	(d) The information required by paragraph (b), clause (4), must only be included in a 
68.31 	report of condition submitted within 45 days of the end of the fourth calendar quarter.

69.1 	Sec. 20. [53B.46] AUDITED FINANCIAL STATEMENTS.
69.2 	(a) Each licensee must, within 90 days after the end of each fiscal year, or within any 
69.3 	extended time the commissioner prescribes, file with the commissioner:
69.4 	(1) an audited financial statement of the licensee for the fiscal year prepared in accordance 
69.5 	with United States generally accepted accounting principles; and
69.6 	(2) any other information the commissioner may reasonably require.
69.7 	(b) The audited financial statements must be prepared by an independent certified public 
69.8 	accountant or independent public accountant who is satisfactory to the commissioner.
69.9 	(c) The audited financial statements must include or be accompanied by a certificate of 
69.10 	opinion prepared by the independent certified public accountant or independent public 
69.11 	accountant that is satisfactory in form and content to the commissioner. If the certificate or 
69.12 	opinion is qualified, the commissioner may order the licensee to take any action the 
69.13 	commissioner finds necessary to enable the independent or certified public accountant or 
69.14 	independent public accountant to remove the qualification.

69.15 	Sec. 21. [53B.47] AUTHORIZED DELEGATE REPORTING.
69.16 	(a) Each licensee must submit a report of authorized delegates within 45 days of the end 
69.17 	of the calendar quarter. The commissioner is authorized to use NMLS to submit the report 
69.18 	required by this paragraph, provided that the functionality is consistent with the requirements 
69.19 	of this section.
69.20 	(b) The authorized delegate report must include, at a minimum, each authorized delegate's:
69.21 	(1) company legal name;
69.22 	(2) taxpayer employer identification number;
69.23 	(3) principal provider identifier;
69.24 	(4) physical address;
69.25 	(5) mailing address;
69.26 	(6) any business conducted in other states;
69.27 	(7) any fictitious or trade name;
69.28 	(8) contact person name, telephone number, and email;
69.29 	(9) start date as the licensee's authorized delegate;
69.30 	(10) end date acting as the licensee's authorized delegate, if applicable;
70.1 	(11) court orders under section 53B.53; and
70.2 	(12) any other information the commissioner reasonably requires with respect to the 
70.3 	authorized delegate.

70.4 	Sec. 22. [53B.48] REPORTS OF CERTAIN EVENTS.
70.5 	(a) A licensee must file a report with the commissioner within ten business days after 
70.6 	the licensee has reason to know any of the following events has occurred:
70.7 	(1) a petition by or against the licensee under the United States Bankruptcy Code, United 
70.8 	States Code, title 11, sections 101 to 110, as amended or recodified from time to time, for 
70.9 	bankruptcy or reorganization has been filed;
70.10 	(2) a petition by or against the licensee for receivership, the commencement of any other 
70.11 	judicial or administrative proceeding for the licensee's dissolution or reorganization, or the 
70.12 	making of a general assignment for the benefit of the licensee's creditors has been filed; or
70.13 	(3) a proceeding to revoke or suspend the licensee's license in a state or country in which 
70.14 	the licensee engages in business or is licensed has been commenced.
70.15 	(b) A licensee must file a report with the commissioner within ten business days after 
70.16 	the licensee has reason to know any of the following events has occurred:
70.17 	(1) the licensee or a key individual or person in control of the licensee is charged with 
70.18 	or convicted of a felony related to money transmission activities; or
70.19 	(2) an authorized delegate is charged with or convicted of a felony related to money 
70.20 	transmission activities.

70.21 	Sec. 23. [53B.49] BANK SECRECY ACT REPORTS.
70.22 	A licensee and an authorized delegate must file all reports required by federal currency 
70.23 	reporting, record keeping, and suspicious activity reporting requirements as set forth in the 
70.24 	Bank Secrecy Act and other federal and state laws pertaining to money laundering. A licensee 
70.25 	and authorized delegate that timely files with the appropriate federal agency a complete and 
70.26 	accurate report required under this section is deemed to comply with the requirements of 
70.27 	this section.

70.28 	Sec. 24. [53B.50] RECORDS.
70.29 	(a) A licensee must maintain the following records, for purposes of determining the 
70.30 	licensee's compliance with this chapter, for at least three years:
71.1 	(1) a record of each outstanding money transmission obligation sold;
71.2 	(2) a general ledger posted at least monthly containing all asset, liability, capital, income, 
71.3 	and expense accounts;
71.4 	(3) bank statements and bank reconciliation records;
71.5 	(4) records of outstanding money transmission obligations;
71.6 	(5) records of each outstanding money transmission obligation paid within the three-year 
71.7 	period;
71.8 	(6) a list of the last known names and addresses of all of the licensee's authorized 
71.9 	delegates; and
71.10 	(7) any other records the commissioner reasonably requires by administrative rule.
71.11 	(b) The items specified in paragraph (a) may be maintained in any form of record.
71.12 	(c) The records specified in paragraph (a) may be maintained outside of Minnesota if 
71.13 	the records are made accessible to the commissioner upon seven business-days' notice that 
71.14 	is sent in a record.
71.15 	(d) All records maintained by the licensee as required under paragraphs (a) to (c) are 
71.16 	open to inspection by the commissioner under section 53B.33, paragraph (a).

71.17 	Sec. 25. [53B.51] RELATIONSHIP BETWEEN LICENSEE AND AUTHORIZED 
71.18 	DELEGATE.
71.19 	(a) For purposes of this section, "remit" means to make direct payments of money to (1) 
71.20 	a licensee, or (2) a licensee's representative authorized to receive money or to deposit money 
71.21 	in a bank in an account specified by the licensee.
71.22 	(b) Before a licensee is authorized to conduct business through an authorized delegate 
71.23 	or allows a person to act as the licensee's authorized delegate, the licensee must:
71.24 	(1) adopt, and update as necessary, written policies and procedures reasonably designed 
71.25 	to ensure that the licensee's authorized delegates comply with applicable state and federal 
71.26 	law;
71.27 	(2) enter into a written contract that complies with paragraph (d); and
71.28 	(3) conduct a reasonable risk-based background investigation sufficient for the licensee 
71.29 	to determine whether the authorized delegate has complied and will likely comply with 
71.30 	applicable state and federal law.
72.1 	(c) An authorized delegate must operate in full compliance with this chapter.
72.2 	(d) The written contract required by paragraph (b) must be signed by the licensee and 
72.3 	the authorized delegate. The written contract must, at a minimum:
72.4 	(1) appoint the person signing the contract as the licensee's authorized delegate with the 
72.5 	authority to conduct money transmission on behalf of the licensee;
72.6 	(2) set forth the nature and scope of the relationship between the licensee and the 
72.7 	authorized delegate and the respective rights and responsibilities of the parties;
72.8 	(3) require the authorized delegate to agree to fully comply with all applicable state and 
72.9 	federal laws, rules, and regulations pertaining to money transmission, including this chapter 
72.10 	and regulations implementing this chapter, relevant provisions of the Bank Secrecy Act and 
72.11 	the USA PATRIOT Act, Public Law 107-56;
72.12 	(4) require the authorized delegate to remit and handle money and monetary value in 
72.13 	accordance with the terms of the contract between the licensee and the authorized delegate;
72.14 	(5) impose a trust on money and monetary value net of fees received for money 
72.15 	transmission for the benefit of the licensee;
72.16 	(6) require the authorized delegate to prepare and maintain records as required by this 
72.17 	chapter or administrative rules implementing this chapter, or as reasonably requested by 
72.18 	the commissioner;
72.19 	(7) acknowledge that the authorized delegate consents to examination or investigation 
72.20 	by the commissioner;
72.21 	(8) state that the licensee is subject to regulation by the commissioner and that as part 
72.22 	of that regulation the commissioner may (1) suspend or revoke an authorized delegate 
72.23 	designation, or (2) require the licensee to terminate an authorized delegate designation; and
72.24 	(9) acknowledge receipt of the written policies and procedures required under paragraph 
72.25 	(b), clause (1).
72.26 	(e) If the licensee's license is suspended, revoked, surrendered, or expired, within five 
72.27 	business days the licensee must provide documentation to the commissioner that the licensee 
72.28 	has notified all applicable authorized delegates of the licensee whose names are in a record 
72.29 	filed with the commissioner of the suspension, revocation, surrender, or expiration of a 
72.30 	license. Upon suspension, revocation, surrender, or expiration of a license, applicable 
72.31 	authorized delegates must immediately cease to provide money transmission as an authorized 
72.32 	delegate of the licensee.
73.1 	(f) An authorized delegate of a licensee holds in trust for the benefit of the licensee all 
73.2 	money net of fees received from money transmission. If an authorized delegate commingles 
73.3 	any funds received from money transmission with other funds or property owned or 
73.4 	controlled by the authorized delegate, all commingled funds and other property are considered 
73.5 	held in trust in favor of the licensee in an amount equal to the amount of money net of fees 
73.6 	received from money transmission.
73.7 	(g) An authorized delegate is prohibited from using a subdelegate to conduct money 
73.8 	transmission on behalf of a licensee.

73.9 	Sec. 26. [53B.52] UNAUTHORIZED ACTIVITIES.
73.10 	A person is prohibited from engaging in the business of money transmission on behalf 
73.11 	of a person not licensed under this chapter or not exempt under sections 53B.29 and 53B.30. 
73.12 	A person that engages in the business of money transmission on behalf of a person that is 
73.13 	not licensed under this chapter or not exempt under sections 53B.29 and 53B.30 provides 
73.14 	money transmission to the same extent as if the person were a licensee, and is jointly and 
73.15 	severally liable with the unlicensed or nonexempt person.

73.16 	Sec. 27. [53B.53] PROHIBITED AUTHORIZED DELEGATES.
73.17 	(a) The district court in an action brought by a licensee has jurisdiction to grant 
73.18 	appropriate equitable or legal relief, including without limitation prohibiting the authorized 
73.19 	delegate from directly or indirectly acting as an authorized delegate for any licensee in 
73.20 	Minnesota and the payment of restitution, damages, or other monetary relief, if the district 
73.21 	court finds that an authorized delegate failed to remit money in accordance with the written 
73.22 	contract required by section 53B.51, paragraph (b), or as otherwise directed by the licensee 
73.23 	or required by law.
73.24 	(b) If the district court issues an order prohibiting a person from acting as an authorized 
73.25 	delegate for any licensee under paragraph (a), the licensee that brought the action must 
73.26 	report the order to the commissioner within 30 days of the date of the order and must report 
73.27 	the order through NMLS within 90 days of the date of the order.

73.28 	Sec. 28. [53B.54] TIMELY TRANSMISSION.
73.29 	(a) Every licensee must forward all money received for transmission in accordance with 
73.30 	the terms of the agreement between the licensee and the sender, unless the licensee has a 
73.31 	reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud 
74.1 	or that a crime or violation of law, rule, or regulation has occurred, is occurring, or may 
74.2 	occur.
74.3 	(b) If a licensee fails to forward money received for transmission as provided under this 
74.4 	section, the licensee must respond to inquiries by the sender with the reason for the failure, 
74.5 	unless providing a response would violate a state or federal law, rule, or regulation.

74.6 	Sec. 29. [53B.55] REFUNDS.
74.7 	(a) This section does not apply to:
74.8 	(1) money received for transmission that is subject to the federal remittance rule under 
74.9 	Code of Federal Regulations, title 12, part 1005, subpart B, as amended or recodified from 
74.10 	time to time; or
74.11 	(2) money received for transmission pursuant to a written agreement between the licensee 
74.12 	and payee to process payments for goods or services provided by the payee.
74.13 	(b) A licensee must refund to the sender within ten days of the date the licensee receives 
74.14 	the sender's written request for a refund of any and all money received for transmission, 
74.15 	unless:
74.16 	(1) the money has been forwarded within ten days of the date on which the money was 
74.17 	received for transmission;
74.18 	(2) instructions have been given committing an equivalent amount of money to the 
74.19 	person designated by the sender within ten days of the date on which the money was received 
74.20 	for transmission;
74.21 	(3) the agreement between the licensee and the sender instructs the licensee to forward 
74.22 	the money at a time that is beyond ten days of the date on which the money was received 
74.23 	for transmission. If money has not been forwarded in accordance with the terms of the 
74.24 	agreement between the licensee and the sender, the licensee must issue a refund in accordance 
74.25 	with the other provisions of this section; or
74.26 	(4) the refund is requested for a transaction that the licensee has not completed based 
74.27 	on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, 
74.28 	or regulation has occurred, is occurring, or may occur.
74.29 	(c) A refund request does not enable the licensee to identify:
74.30 	(1) the sender's name and address or telephone number; or
75.1 	(2) the particular transaction to be refunded in the event the sender has multiple 
75.2 	transactions outstanding.

75.3 	Sec. 30. [53B.56] RECEIPTS.
75.4 		Subdivision 1.Definition. For purposes of this section, "receipt" means a paper receipt, 
75.5 	electronic record, or other written confirmation.
75.6 		Subd. 2.Exemption. This section does not apply to:
75.7 	(1) money received for transmission that is subject to the federal remittance rule under 
75.8 	Code of Federal Regulations, title 12, part 1005, subpart B, as amended or recodified from 
75.9 	time to time;
75.10 	(2) money received for transmission that is not primarily for personal, family, or 
75.11 	household purposes;
75.12 	(3) money received for transmission pursuant to a written agreement between the licensee 
75.13 	and payee to process payments for goods or services provided by the payee; or
75.14 	(4) payroll processing services.
75.15 		Subd. 3.Transaction types; receipts form. For a transaction conducted in person, the 
75.16 	receipt may be provided electronically if the sender requests or agrees to receive an electronic 
75.17 	receipt. For a transaction conducted electronically or by telephone, a receipt may be provided 
75.18 	electronically. All electronic receipts must be provided in a retainable form.
75.19 		Subd. 4.Receipts required. (a) Every licensee or the licensee's authorized delegate 
75.20 	must provide the sender a receipt for money received for transmission.
75.21 	(b) The receipt must contain, as applicable:
75.22 	(1) the name of the sender;
75.23 	(2) the name of the designated recipient;
75.24 	(3) the date of the transaction;
75.25 	(4) the unique transaction or identification number;
75.26 	(5) the name of the licensee, NMLS Unique ID, the licensee's business address, and the 
75.27 	licensee's customer service telephone number;
75.28 	(6) the transaction amount, expressed in United States dollars;
75.29 	(7) any fee the licensee charges the sender for the transaction; and
75.30 	(8) any taxes the licensee collects from the sender for the transaction.
76.1 	(c) The receipt required by this section must be provided in (1) English, and (2) the 
76.2 	language principally used by the licensee or authorized delegate to advertise, solicit, or 
76.3 	negotiate, either orally or in writing, for a transaction conducted in person, electronically, 
76.4 	or by telephone, if the language principally used is a language other than English.

76.5 	Sec. 31. [53B.57] NOTICE.
76.6 	Every licensee or authorized delegate must include on a receipt or disclose on the 
76.7 	licensee's website or mobile application the name and telephone number of the department 
76.8 	and a statement that the licensee's customers can contact the department with questions or 
76.9 	complaints about the licensee's money transmission services.

76.10 	Sec. 32. [53B.58] PAYROLL PROCESSING SERVICES; DISCLOSURES.
76.11 	(a) A licensee that provides payroll processing services must:
76.12 	(1) issue reports to clients detailing client payroll obligations in advance of the payroll 
76.13 	funds being deducted from an account; and
76.14 	(2) make available worker pay stubs or an equivalent statement to workers.
76.15 	(b) Paragraph (a) does not apply to a licensee providing payroll processing services if 
76.16 	the licensee's client designates the intended recipients to the licensee and is responsible for 
76.17 	providing the disclosures required by paragraph (a), clause (2).

76.18 	Sec. 33. [53B.59] NET WORTH.
76.19 	(a) A licensee under this chapter must maintain at all times a tangible net worth that is 
76.20 	the greater of: (1) $100,000; or (2) three percent of total assets for the first $100,000,000; 
76.21 	two percent of additional assets between $100,000,000 to $1,000,000,000; and one-half 
76.22 	percent of additional assets over $1,000,000,000.
76.23 	(b) Tangible net worth must be demonstrated in the initial application by the applicant's 
76.24 	most recent audited or unaudited financial statements under section 53B.38, paragraph (b), 
76.25 	clause (6).
76.26 	(c) Notwithstanding paragraphs (a) and (b), the commissioner has the authority, for good 
76.27 	cause shown, to exempt any applicant or licensee in-part or in whole from the requirements 
76.28 	of this section.

77.1 	Sec. 34. [53B.60] SURETY BOND.
77.2 	(a) An applicant for a money transmission license must provide, and a licensee must at 
77.3 	all times maintain (1) security consisting of a surety bond in a form satisfactory to the 
77.4 	commissioner, or (2) with the commissioner's approval, a deposit instead of a bond in 
77.5 	accordance with this section.
77.6 	(b) The amount of the required security under this section is:
77.7 	(1) the greater of (i) $100,000, or (ii) an amount equal to one hundred percent of the 
77.8 	licensee's average daily money transmission liability in Minnesota, calculated for the most 
77.9 	recently completed three-month period, up to a maximum of $500,000; or
77.10 	(2) in the event that the licensee's tangible net worth exceeds ten percent of total assets, 
77.11 	the licensee must maintain a surety bond of $100,000.
77.12 	(c) A licensee that maintains a bond in the maximum amount provided for in paragraph 
77.13 	(b), clause (1) or (2), as applicable, is not required to calculate the licensee's average daily 
77.14 	money transmission liability in Minnesota for purposes of this section.
77.15 	(d) A licensee may exceed the maximum required bond amount pursuant to section 
77.16 	53B.62, paragraph (a), clause (5).
77.17 	(e) The security device remains effective until cancellation, which may occur only after 
77.18 	30 days' written notice to the commissioner. Cancellation does not affect the rights of any 
77.19 	claimant for any liability incurred or accrued during the period for which the bond was in 
77.20 	force.
77.21 	(f) The security device must remain in place for no longer than five years after the 
77.22 	licensee ceases money transmission operations in Minnesota. Notwithstanding this paragraph, 
77.23 	the commissioner may permit the security device to be reduced or eliminated before that 
77.24 	time to the extent that the amount of the licensee's payment instruments outstanding in 
77.25 	Minnesota are reduced. The commissioner may also permit a licensee to substitute a letter 
77.26 	of credit or other form of security device acceptable to the commissioner for the security 
77.27 	device in place at the time the licensee ceases money transmission operations in Minnesota.

77.28 	Sec. 35. [53B.61] MAINTENANCE OF PERMISSIBLE INVESTMENTS.
77.29 	(a) A licensee must maintain at all times permissible investments that have a market 
77.30 	value computed in accordance with United States generally accepted accounting principles 
77.31 	of not less than the aggregate amount of all of the licensee's outstanding money transmission 
77.32 	obligations.
78.1 	(b) Except for permissible investments enumerated in section 53B.62, paragraph (a), 
78.2 	the commissioner may by administrative rule or order, with respect to any licensee, limit 
78.3 	the extent to which a specific investment maintained by a licensee within a class of 
78.4 	permissible investments may be considered a permissible investment, if the specific 
78.5 	investment represents undue risk to customers not reflected in the market value of 
78.6 	investments.
78.7 	(c) Permissible investments, even if commingled with other assets of the licensee, are 
78.8 	held in trust for the benefit of the purchasers and holders of the licensee's outstanding money 
78.9 	transmission obligations in the event of insolvency; the filing of a petition by or against the 
78.10 	licensee under the United States Bankruptcy Code, United States Code, title 11, sections 
78.11 	101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization; 
78.12 	the filing of a petition by or against the licensee for receivership; the commencement of any 
78.13 	other judicial or administrative proceeding for the licensee's dissolution or reorganization; 
78.14 	or in the event of an action by a creditor against the licensee who is not a beneficiary of this 
78.15 	statutory trust. No permissible investments impressed with a trust pursuant to this paragraph 
78.16 	are subject to attachment, levy of execution, or sequestration by order of any court, except 
78.17 	for a beneficiary of the statutory trust.
78.18 	(d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when 
78.19 	any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause 
78.20 	(4), the commissioner must notify the applicable regulator of each state in which the licensee 
78.21 	is licensed to engage in money transmission, if any, of the establishment of the trust or the 
78.22 	funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed 
78.23 	pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and 
78.24 	any other permissible investments held in trust for the benefit of the purchasers and holders 
78.25 	of the licensee's outstanding money transmission obligations, are deemed held in trust for 
78.26 	the benefit of the purchasers and holders of the licensee's outstanding money transmission 
78.27 	obligations on a pro rata and equitable basis in accordance with statutes pursuant to which 
78.28 	permissible investments are required to be held in Minnesota and other states, as defined 
78.29 	by a substantially similar statute in the other state. Any statutory trust established under this 
78.30 	section terminates upon extinguishment of all of the licensee's outstanding money 
78.31 	transmission obligations.
78.32 	(e) The commissioner may by rule or by order allow other types of investments that the 
78.33 	commissioner determines are of sufficient liquidity and quality to be a permissible 
78.34 	investment. The commissioner is authorized to participate in efforts with other state regulators 
79.1 	to determine that other types of investments are of sufficient liquidity and quality to be a 
79.2 	permissible investment.

79.3 	Sec. 36. [53B.62] PERMISSIBLE INVESTMENTS.
79.4 		Subdivision 1.Certain investments permissible. The following investments are 
79.5 	permissible under section 53B.61:
79.6 	(1) cash, including demand deposits, savings deposits, and funds in accounts held for 
79.7 	the benefit of the licensee's customers in a federally insured depository financial institution; 
79.8 	and cash equivalents, including ACH items in transit to the licensee and ACH items or 
79.9 	international wires in transit to a payee, cash in transit via armored car, cash in smart safes, 
79.10 	cash in licensee-owned locations, debit card or credit card funded transmission receivables 
79.11 	owed by any bank, or money market mutual funds rated AAA or the equivalent from any 
79.12 	eligible rating service;
79.13 	(2) certificates of deposit or senior debt obligations of an insured depository institution, 
79.14 	as defined in section 3 of the Federal Deposit Insurance Act, United States Code, title 12, 
79.15 	section 1813, as amended or recodified from time to time, or as defined under the federal 
79.16 	Credit Union Act, United States Code, title 12, section 1781, as amended or recodified from 
79.17 	time to time;
79.18 	(3) an obligation of the United States or a commission, agency, or instrumentality thereof; 
79.19 	an obligation that is guaranteed fully as to principal and interest by the United States; or an 
79.20 	obligation of a state or a governmental subdivision, agency, or instrumentality thereof;
79.21 	(4) the full drawable amount of an irrevocable standby letter of credit, for which the 
79.22 	stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw 
79.23 	a sight draft under the letter of credit and present the sight draft to obtain funds up to the 
79.24 	letter of credit amount within seven days of presentation of the items required by subdivision 
79.25 	2, paragraph (c); and
79.26 	(5) one hundred percent of the surety bond or deposit provided for under section 53B.60 
79.27 	that exceeds the average daily money transmission liability in Minnesota.
79.28 		Subd. 2.Letter of credit; requirements. (a) A letter of credit under subdivision 1, 
79.29 	clause (4), must:
79.30 	(1) be issued by a federally insured depository financial institution, a foreign bank that 
79.31 	is authorized under federal law to maintain a federal agency or federal branch office in a 
79.32 	state or states, or a foreign bank that is authorized under state law to maintain a branch in 
79.33 	a state that: (i) bears an eligible rating or whose parent company bears an eligible rating; 
80.1 	and (ii) is regulated, supervised, and examined by United States federal or state authorities 
80.2 	having regulatory authority over banks, credit unions, and trust companies;
80.3 	(2) be irrevocable, unconditional, and indicate that it is not subject to any condition or 
80.4 	qualifications outside of the letter of credit;
80.5 	(3) not contain reference to any other agreements, documents, or entities, or otherwise 
80.6 	provide for any security interest in the licensee; and
80.7 	(4) contain an issue date and expiration date, and expressly provide for automatic 
80.8 	extension without a written amendment, for an additional period of one year from the present 
80.9 	or each future expiration date, unless the issuer of the letter of credit notifies the 
80.10 	commissioner in writing by certified or registered mail or courier mail or other receipted 
80.11 	means, at least 60 days before any expiration date, that the irrevocable letter of credit will 
80.12 	not be extended.
80.13 	(b) In the event of any notice of expiration or nonextension of a letter of credit issued 
80.14 	under paragraph (a), clause (4), the licensee must demonstrate to the satisfaction of the 
80.15 	commissioner, 15 days before the letter or credit's expiration, that the licensee maintains 
80.16 	and will maintain permissible investments in accordance with section 53B.61, paragraph 
80.17 	(a), upon the expiration of the letter of credit. If the licensee is not able to do so, the 
80.18 	commissioner may draw on the letter of credit in an amount up to the amount necessary to 
80.19 	meet the licensee's requirements to maintain permissible investments in accordance with 
80.20 	section 53B.61, paragraph (a). Any draw under this paragraph must be offset against the 
80.21 	licensee's outstanding money transmission obligations. The drawn funds must be held in 
80.22 	trust by the commissioner or the commissioner's designated agent, to the extent authorized 
80.23 	by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding 
80.24 	money transmission obligations.
80.25 	(c) The letter of credit must provide that the issuer of the letter of credit must honor, at 
80.26 	sight, a presentation made by the beneficiary to the issuer of the following documents on 
80.27 	or before the expiration date of the letter of credit:
80.28 	(1) the original letter of credit, including any amendments; and
80.29 	(2) a written statement from the beneficiary stating that any of the following events have 
80.30 	occurred:
80.31 	(i) the filing of a petition by or against the licensee under the United States Bankruptcy 
80.32 	Code, United States Code, title 11, sections 101 to 110, as amended or recodified from time 
80.33 	to time, for bankruptcy or reorganization;
81.1 	(ii) the filing of a petition by or against the licensee for receivership, or the 
81.2 	commencement of any other judicial or administrative proceeding for the licensee's 
81.3 	dissolution or reorganization;
81.4 	(iii) the seizure of assets of a licensee by a commissioner of any other state pursuant to 
81.5 	an emergency order issued in accordance with applicable law, on the basis of an action, 
81.6 	violation, or condition that has caused or is likely to cause the insolvency of the licensee; 
81.7 	or
81.8 	(iv) the beneficiary has received notice of expiration or nonextension of a letter of credit 
81.9 	and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee 
81.10 	will maintain permissible investments in accordance with section 53B.61, paragraph (a), 
81.11 	upon the expiration or nonextension of the letter of credit.
81.12 	(d) The commissioner may designate an agent to serve on the commissioner's behalf as 
81.13 	beneficiary to a letter of credit, provided the agent and letter of credit meet requirements 
81.14 	the commissioner establishes. The commissioner's agent may serve as agent for multiple 
81.15 	licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable 
81.16 	amount for the purposes of subdivision 1, clause (4), and this subdivision are assigned to 
81.17 	the commissioner.
81.18 	(e) The commissioner is authorized to participate in multistate processes designed to 
81.19 	facilitate the issuance and administration of letters of credit, including but not limited to 
81.20 	services provided by the NMLS and State Regulatory Registry, LLC.
81.21 		Subd. 3.Other permissible investments. Unless the commissioner by administrative 
81.22 	rule or order otherwise permits an investment to exceed the limit set forth in this subdivision, 
81.23 	the following investments are permissible under section 53B.61 to the extent specified:
81.24 	(1) receivables that are payable to a licensee from its authorized delegates in the ordinary 
81.25 	course of business that are less than seven days old, up to 50 percent of the aggregate value 
81.26 	of the licensee's total permissible investments;
81.27 	(2) of the receivables permissible under clause (1), receivables that are payable to a 
81.28 	licensee from a single authorized delegate in the ordinary course of business may not exceed 
81.29 	ten percent of the aggregate value of the licensee's total permissible investments;
81.30 	(3) the following investments are permissible up to 20 percent per category and combined 
81.31 	up to 50 percent of the aggregate value of the licensee's total permissible investments:
81.32 	(i) a short-term investment of up to six months bearing an eligible rating;
81.33 	(ii) commercial paper bearing an eligible rating;
82.1 	(iii) a bill, note, bond, or debenture bearing an eligible rating;
82.2 	(iv) United States tri-party repurchase agreements collateralized at 100 percent or more 
82.3 	with United States government or agency securities, municipal bonds, or other securities 
82.4 	bearing an eligible rating;
82.5 	(v) money market mutual funds rated less than "AAA" and equal to or higher than "A-" 
82.6 	by S&P, or the equivalent from any other eligible rating service; and
82.7 	(vi) a mutual fund or other investment fund composed solely and exclusively of one or 
82.8 	more permissible investments listed in subdivision 1, clauses (1) to (3); and
82.9 	(4) cash, including demand deposits, savings deposits, and funds in accounts held for 
82.10 	the benefit of the licensee's customers, at foreign depository institutions are permissible up 
82.11 	to ten percent of the aggregate value of the licensee's total permissible investments, if the 
82.12 	licensee has received a satisfactory rating in the licensee's most recent examination and the 
82.13 	foreign depository institution:
82.14 	(i) has an eligible rating;
82.15 	(ii) is registered under the Foreign Account Tax Compliance Act, Public Law 111-147;
82.16 	(iii) is not located in any country subject to sanctions from the Office of Foreign Asset 
82.17 	Control; and
82.18 	(iv) is not located in a high-risk or noncooperative jurisdiction, as designated by the 
82.19 	Financial Action Task Force.

82.20 	Sec. 37. [53B.63] SUSPENSION; REVOCATION.
82.21 	(a) The commissioner may suspend or revoke a license or order a licensee to revoke the 
82.22 	designation of an authorized delegate if:
82.23 	(1) the licensee violates this chapter, or an administrative rule adopted or an order issued 
82.24 	under this chapter;
82.25 	(2) the licensee does not cooperate with an examination or investigation conducted by 
82.26 	the commissioner;
82.27 	(3) the licensee engages in fraud, intentional misrepresentation, or gross negligence;
82.28 	(4) an authorized delegate is convicted of a violation of a state or federal statute 
82.29 	prohibiting money laundering, or violates an administrative rule adopted or an order issued 
82.30 	under this chapter, as a result of the licensee's willful misconduct or willful blindness;
83.1 	(5) the competence, experience, character, or general fitness of the licensee, authorized 
83.2 	delegate, person in control of a licensee, key individual, or responsible person of the 
83.3 	authorized delegate indicates that it is not in the public interest to permit the person to 
83.4 	provide money transmission;
83.5 	(6) the licensee engages in an unsafe or unsound practice;
83.6 	(7) the licensee is insolvent, suspends payment of the licensee's obligations, or makes a 
83.7 	general assignment for the benefit of the licensee's creditors; or
83.8 	(8) the licensee does not remove an authorized delegate after the commissioner issues 
83.9 	and serves upon the licensee a final order that includes a finding that the authorized delegate 
83.10 	has violated this chapter.
83.11 	(b) When determining whether a licensee is engaging in an unsafe or unsound practice, 
83.12 	the commissioner may consider the size and condition of the licensee's money transmission, 
83.13 	the magnitude of the loss, the gravity of the violation of this chapter, and the previous 
83.14 	conduct of the person involved.

83.15 	Sec. 38. [53B.64] AUTHORIZED DELEGATES; SUSPENSION AND 
83.16 	REVOCATION.
83.17 	(a) The commissioner may issue an order suspending or revoking the designation of an 
83.18 	authorized delegate if the commissioner finds:
83.19 	(1) the authorized delegate violated this chapter, or an administrative rule adopted or an 
83.20 	order issued under this chapter;
83.21 	(2) the authorized delegate did not cooperate with an examination or investigation 
83.22 	conducted by the commissioner;
83.23 	(3) the authorized delegate engaged in fraud, intentional misrepresentation, or gross 
83.24 	negligence;
83.25 	(4) the authorized delegate is convicted of a violation of a state or federal anti-money 
83.26 	laundering statute;
83.27 	(5) the competence, experience, character, or general fitness of the authorized delegate 
83.28 	or a person in control of the authorized delegate indicates that it is not in the public interest 
83.29 	to permit the authorized delegate to provide money transmission; or
83.30 	(6) the authorized delegate is engaging in an unsafe or unsound practice.
84.1 	(b) When determining whether an authorized delegate is engaging in an unsafe or unsound 
84.2 	practice, the commissioner may consider the size and condition of the authorized delegate's 
84.3 	provision of money transmission, the magnitude of the loss, the gravity of the violation of 
84.4 	this chapter, or an administrative rule adopted or order issued under this chapter, and the 
84.5 	previous conduct of the authorized delegate.
84.6 	(c) An authorized delegate may apply for relief from a suspension or revocation of 
84.7 	designation as an authorized delegate in the same manner as a licensee.

84.8 	Sec. 39. [53B.65] ENFORCEMENT.
84.9 	Section 45.027 applies to this chapter.

84.10 	Sec. 40. [53B.66] CRIMINAL PENALTIES.
84.11 	(a) A person who intentionally makes a false statement, misrepresentation, or false 
84.12 	certification in a record filed or required to be maintained under this chapter or that 
84.13 	intentionally makes a false entry or omits a material entry in a record filed or required to 
84.14 	be maintained under this chapter is guilty of a felony.
84.15 	(b) A person who knowingly engages in an activity for which a license is required under 
84.16 	this chapter without being licensed under this chapter, and who receives more than $1,000 
84.17 	in compensation within a 30-day period from the activity, is guilty of a felony.
84.18 	(c) A person who knowingly engages in an activity for which a license is required under 
84.19 	this chapter without being licensed under this chapter, and who receives more than $500 
84.20 	but less than $1,000 in compensation within a 30-day period from the activity, is guilty of 
84.21 	a gross misdemeanor.
84.22 	(d) A person who knowingly engages in an activity for which a license is required under 
84.23 	this chapter without being licensed under this chapter, and who receives no more than $500 
84.24 	in compensation within a 30-day period from the activity, is guilty of a misdemeanor.

84.25 	Sec. 41. [53B.67] SEVERABILITY.
84.26 	If any provision of this chapter or the chapter's application to any person or circumstance 
84.27 	is held invalid, the invalidity does not affect other provisions or applications of this chapter 
84.28 	that can be given effect without the invalid provision or application.

85.1 	Sec. 42. [53B.68] TRANSITION PERIOD.
85.2 	(a) A person licensed in Minnesota to engage in the business of money transmission is 
85.3 	not subject to the provisions of this chapter to the extent that this chapter's provisions conflict 
85.4 	with current law or establish new requirements not imposed under current law until the 
85.5 	licensee renews the licensee's current license or for five months after the effective date of 
85.6 	this chapter, whichever is later.
85.7 	(b) Notwithstanding paragraph (a), a licensee is only required to amend the licensee's 
85.8 	authorized delegate contracts for contracts entered into or amended after the effective date 
85.9 	or the completion of any transition period contemplated under paragraph (a). Nothing in 
85.10 	this section limits an authorized delegate's obligations to operate in full compliance with 
85.11 	this chapter, as required under section 53B.51, paragraph (c).

85.12 	Sec. 43. [53B.69] DEFINITIONS.
85.13 		Subdivision 1.Terms. For purposes of sections 53B.70 to 53B.74, the following terms 
85.14 	have the meaning given them.
85.15 		Subd. 2.Control of virtual currency. "Control of virtual currency," when used in 
85.16 	reference to a transaction or relationship involving virtual currency, means the power to 
85.17 	execute unilaterally or prevent indefinitely a virtual currency transaction.
85.18 		Subd. 3.Exchange. "Exchange," used as a verb, means to assume control of virtual 
85.19 	currency from or on behalf of a person, at least momentarily, to sell, trade, or convert:
85.20 	(1) virtual currency for money, bank credit, or one or more forms of virtual currency; 
85.21 	or
85.22 	(2) money or bank credit for one or more forms of virtual currency.
85.23 		Subd. 4.Transfer. "Transfer" means to assume control of virtual currency from or on 
85.24 	behalf of a person and to:
85.25 	(1) credit the virtual currency to the account of another person;
85.26 	(2) move the virtual currency from one account of a person to another account of the 
85.27 	same person; or
85.28 	(3) relinquish control of virtual currency to another person.
85.29 		Subd. 5.United States dollar equivalent of virtual currency. "United States dollar 
85.30 	equivalent of virtual currency" means the equivalent value of a particular virtual currency 
86.1 	in United States dollars shown on a virtual-currency exchange based in the United States 
86.2 	for a particular date or period specified in this chapter.
86.3 		Subd. 6.Virtual currency. (a) "Virtual currency" means a digital representation of value 
86.4 	that:
86.5 	(1) is used as a medium of exchange, unit of account, or store of value; and
86.6 	(2) is not money, whether or not denominated in money.
86.7 	(b) Virtual currency does not include:
86.8 	(1) a transaction in which a merchant grants, as part of an affinity or rewards program, 
86.9 	value that cannot be taken from or exchanged with the merchant for money, bank credit, or 
86.10 	virtual currency; or
86.11 	(2) a digital representation of value issued by or on behalf of a publisher and used solely 
86.12 	within an online game, game platform, or family of games sold by the same publisher or 
86.13 	offered on the same game platform.
86.14 		Subd. 7.Virtual-currency administration. "Virtual-currency administration" means 
86.15 	issuing virtual currency with the authority to redeem the currency for money, bank credit, 
86.16 	or other virtual currency.
86.17 		Subd. 8.Virtual-currency business activity. "Virtual-currency business activity" means:
86.18 	(1) exchanging, transferring, or storing virtual currency or engaging in virtual-currency 
86.19 	administration, whether directly or through an agreement with a virtual-currency 
86.20 	control-services vendor;
86.21 	(2) holding electronic precious metals or electronic certificates representing interests in 
86.22 	precious metals on behalf of another person or issuing shares or electronic certificates 
86.23 	representing interests in precious metals; or
86.24 	(3) exchanging one or more digital representations of value used within one or more 
86.25 	online games, game platforms, or family of games for:
86.26 	(i) virtual currency offered by or on behalf of the same publisher from which the original 
86.27 	digital representation of value was received; or
86.28 	(ii) money or bank credit outside the online game, game platform, or family of games 
86.29 	offered by or on behalf of the same publisher from which the original digital representation 
86.30 	of value was received.
87.1 		Subd. 9.Virtual-currency control-services vendor. "Virtual-currency control-services 
87.2 	vendor" means a person that has control of virtual currency solely under an agreement with 
87.3 	a person that, on behalf of another person, assumes control of virtual currency.

87.4 	Sec. 44. [53B.70] SCOPE.
87.5 	(a) Sections 53B.71 to 53B.74 do not apply to the exchange, transfer, or storage of virtual 
87.6 	currency or to virtual-currency administration to the extent the Electronic Fund Transfer 
87.7 	Act of 1978, United States Code, title 15, sections 1693 to 1693r, as amended or recodified 
87.8 	from time to time; the Securities Exchange Act of 1934, United States Code, title 15, sections 
87.9 	78a to 78oo, as amended or recodified from time to time; the Commodities Exchange Act 
87.10 	of 1936, United States Code, title 7, sections 1 to 27f, as amended or recodified from time 
87.11 	to time; or chapter 80A govern the activity.
87.12 	(b) Sections 53B.71 to 53B.74 do not apply to activity by:
87.13 	(1) a person that:
87.14 	(i) contributes only connectivity software or computing power to a decentralized virtual 
87.15 	currency, or to a protocol governing transfer of the digital representation of value;
87.16 	(ii) provides only data storage or security services for a business engaged in 
87.17 	virtual-currency business activity and does not otherwise engage in virtual-currency business 
87.18 	activity on behalf of another person; or
87.19 	(iii) provides only to a person otherwise exempt from this chapter virtual currency as 
87.20 	one or more enterprise solutions used solely among each other and has no agreement or 
87.21 	relationship with a person that is an end-user of virtual currency;
87.22 	(2) a person using virtual currency, including creating, investing, buying or selling, or 
87.23 	obtaining virtual currency as payment for the purchase or sale of goods or services, solely:
87.24 	(i) on the person's own behalf;
87.25 	(ii) for personal, family, or household purposes; or
87.26 	(iii) for academic purposes;
87.27 	(3) a person whose virtual-currency business activity with or on behalf of persons is 
87.28 	reasonably expected to be valued, in the aggregate, on an annual basis at $5,000 or less, 
87.29 	measured by the United States dollar equivalent of virtual currency;
87.30 	(4) an attorney to the extent of providing escrow services to a person;
87.31 	(5) a title insurance company to the extent of providing escrow services to a person; or
88.1 	(6) a securities intermediary, as defined under section 336.8-102(14), or a commodity 
88.2 	intermediary, as defined under section 336.9-102(17), that:
88.3 	(i) does not engage in the ordinary course of business in virtual-currency business activity 
88.4 	with or on behalf of a person in addition to maintaining securities accounts or commodities 
88.5 	accounts and is regulated as a securities intermediary or commodity intermediary under 
88.6 	federal law, law of Minnesota other than this chapter, or law of another state; and
88.7 	(ii) affords a person protections comparable to those set forth under section 53B.37.
88.8 	(c) Sections 53B.71 to 53B.74 do not apply to a secured creditor, as defined under 
88.9 	sections 336.9-101 to 336.9-809 or to a creditor with a judicial lien or lien arising by 
88.10 	operation of law on collateral that is virtual currency, if the virtual-currency business activity 
88.11 	of the creditor is limited to enforcement of the security interest in compliance with sections 
88.12 	336.9-101 to 336.9-809 or lien in compliance with the law applicable to the lien.
88.13 	(d) Sections 53B.71 to 53B.74 do not apply to a virtual-currency control-services vendor.
88.14 	(e) Sections 53B.71 to 53B.74 do not apply to a person that:
88.15 	(1) does not receive compensation from a person to:
88.16 	(i) provide virtual-currency products or services; or
88.17 	(ii) conduct virtual-currency business activity; or
88.18 	(2) is engaged in testing products or services with the person's own money.
88.19 	(f) The commissioner may determine that a person or class of persons, given facts 
88.20 	particular to the person or class, should be exempt from this chapter, whether the person or 
88.21 	class is covered by requirements imposed under federal law on a money-service business.

88.22 	Sec. 45. [53B.71] VIRTUAL CURRENCY BUSINESS ACTIVITY; CONDITIONS 
88.23 	PRECEDENT.
88.24 	(a) A person may not engage in virtual-currency business activity, or hold itself out as 
88.25 	being able to engage in virtual-currency business activity, with or on behalf of another 
88.26 	person unless the person is:
88.27 	(1) licensed in Minnesota by the commissioner under section 53B.40; or
88.28 	(2) exempt from licensing under section 53B.29.
88.29 	(b) A person that is licensed to engage in virtual-currency business activity is engaged 
88.30 	in the business of money transmission and is subject to the requirements of this chapter.

89.1 	Sec. 46. [53B.72] REQUIRED DISCLOSURES.
89.2 	(a) A licensee that engages in virtual currency business activity must provide to a person 
89.3 	who uses the licensee's products or services the disclosures required by paragraph (b) and 
89.4 	any additional disclosure the commissioner by administrative rule determines reasonably 
89.5 	necessary to protect persons. The commissioner must determine by administrative rule the 
89.6 	time and form required for disclosure. A disclosure required by this section must be made 
89.7 	separately from any other information provided by the licensee and in a clear and conspicuous 
89.8 	manner in a record the person may keep. A licensee may propose for the commissioner's 
89.9 	approval alternate disclosures as more appropriate for the licensee's virtual-currency business 
89.10 	activity with or on behalf of persons.
89.11 	(b) Before establishing a relationship with a person, a licensee must disclose, to the 
89.12 	extent applicable to the virtual-currency business activity the licensee undertakes with the 
89.13 	person:
89.14 	(1) a schedule of fees and charges the licensee may assess, the manner by which fees 
89.15 	and charges are calculated if the fees and charges are not set in advance and disclosed, and 
89.16 	the timing of the fees and charges;
89.17 	(2) whether the product or service provided by the licensee is covered by:
89.18 	(i) a form of insurance or is otherwise guaranteed against loss by an agency of the United 
89.19 	States:
89.20 	(A) up to the full United States dollar equivalent of virtual currency purchased from the 
89.21 	licensee or for control of virtual currency by the licensee as of the date of the placement or 
89.22 	purchase, including the maximum amount provided by insurance under the Federal Deposit 
89.23 	Insurance Corporation or otherwise available from the Securities Investor Protection 
89.24 	Corporation; or
89.25 	(B) if not provided at the full United States dollar equivalent of virtual currency purchased 
89.26 	from the licensee or for control of virtual currency by the licensee, the maximum amount 
89.27 	of coverage for each person expressed in the United States dollar equivalent of the virtual 
89.28 	currency; or
89.29 	(ii) private insurance against theft or loss, including cyber theft or theft by other means;
89.30 	(3) the irrevocability of a transfer or exchange and any exception to irrevocability;
89.31 	(4) a description of:
89.32 	(i) liability for an unauthorized, mistaken, or accidental transfer or exchange;
90.1 	(ii) the person's responsibility to provide notice to the licensee of the transfer or exchange;
90.2 	(iii) the basis for any recovery by the person from the licensee;
90.3 	(iv) general error-resolution rights applicable to the transfer or exchange; and
90.4 	(v) the method for the person to update the person's contact information with the licensee;
90.5 	(5) that the date or time when the transfer or exchange is made and the person's account 
90.6 	is debited may differ from the date or time when the person initiates the instruction to make 
90.7 	the transfer or exchange;
90.8 	(6) whether the person has a right to stop a preauthorized payment or revoke authorization 
90.9 	for a transfer, and the procedure to initiate a stop-payment order or revoke authorization 
90.10 	for a subsequent transfer;
90.11 	(7) the person's right to receive a receipt, trade ticket, or other evidence of the transfer 
90.12 	or exchange;
90.13 	(8) the person's right to at least 30 days' prior notice of a change in the licensee's fee 
90.14 	schedule, other terms and conditions of operating the licensee's virtual-currency business 
90.15 	activity with the person, and the policies applicable to the person's account; and
90.16 	(9) that virtual currency is not money.
90.17 	(c) Except as otherwise provided in paragraph (d), at the conclusion of a virtual-currency 
90.18 	transaction with or on behalf of a person, a licensee must provide the person a confirmation 
90.19 	in a record. The record must contain:
90.20 	(1) the name and contact information of the licensee, including information the person 
90.21 	may need to ask a question or file a complaint;
90.22 	(2) the type, value, date, precise time, and amount of the transaction; and
90.23 	(3) the fee charged for the transaction, including any charge for conversion of virtual 
90.24 	currency to money, bank credit, or other virtual currency.
90.25 	(d) If a licensee discloses that it provides a daily confirmation in the initial disclosure 
90.26 	under paragraph (c), the licensee may elect to provide a single, daily confirmation for all 
90.27 	transactions with or on behalf of a person on that day instead of a per-transaction 
90.28 	confirmation.

91.1 	Sec. 47. [53B.73] PROPERTY INTERESTS AND ENTITLEMENTS TO VIRTUAL 
91.2 	CURRENCY.
91.3 	(a) A licensee that has control of virtual currency for one or more persons must maintain 
91.4 	control of virtual currency in each type of virtual currency sufficient to satisfy the aggregate 
91.5 	entitlements of the persons to the type of virtual currency.
91.6 	(b) If a licensee violates paragraph (a), the property interests of the persons in the virtual 
91.7 	currency are pro rata property interests in the type of virtual currency to which the persons 
91.8 	are entitled, without regard to the time the persons became entitled to the virtual currency 
91.9 	or the licensee obtained control of the virtual currency.
91.10 	(c) The virtual currency referred to in this section is:
91.11 	(1) held for the persons entitled to the virtual currency;
91.12 	(2) not property of the licensee;
91.13 	(3) not subject to the claims of creditors of the licensee; and
91.14 	(4) a permissible investment under this chapter.

91.15 	Sec. 48. [53B.74] VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL 
91.16 	REQUIREMENTS.
91.17 	(a) A licensee engaged in virtual currency business activities may include virtual currency 
91.18 	in the licensee's calculation of tangible net worth, by measuring the average value of the 
91.19 	virtual currency in United States dollar equivalent over the prior six months, excluding 
91.20 	control of virtual currency for a person entitled to the protections under section 53B.73.
91.21 	(b) A licensee must maintain, for all virtual-currency business activity with or on behalf 
91.22 	of a person five years after the date of the activity, a record of:
91.23 	(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's 
91.24 	account in Minnesota, including:
91.25 	(i) the identity of the person;
91.26 	(ii) the form of the transaction;
91.27 	(iii) the amount, date, and payment instructions given by the person; and
91.28 	(iv) the account number, name, and United States Postal Service address of the person, 
91.29 	and, to the extent feasible, other parties to the transaction;
92.1 	(2) the aggregate number of transactions and aggregate value of transactions by the 
92.2 	licensee with or on behalf of the person and for the licensee's account in this state, expressed 
92.3 	in the United States dollar equivalent of the virtual currency for the previous 12 calendar 
92.4 	months;
92.5 	(3) each transaction in which the licensee exchanges one form of virtual currency for 
92.6 	money or another form of virtual currency with or on behalf of the person;
92.7 	(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities, 
92.8 	capital, income, and expenses;
92.9 	(5) each business-call report the licensee is required to create or provide to the department 
92.10 	or NMLS;
92.11 	(6) bank statements and bank reconciliation records for the licensee and the name, 
92.12 	account number, and United States Postal Service address of each bank the licensee uses 
92.13 	to conduct virtual-currency business activity with or on behalf of the person;
92.14 	(7) a report of any dispute with the person; and
92.15 	(8) a report of any virtual-currency business activity transaction with or on behalf of a 
92.16 	person which the licensee was unable to complete.
92.17 	(c) A licensee must maintain records required by paragraph (b) in a form that enables 
92.18 	the commissioner to determine whether the licensee is in compliance with this chapter, any 
92.19 	court order, and law of Minnesota other than this chapter.

92.20 	Sec. 49. [58B.011] STUDENT LOAN ADVOCATE.
92.21 		Subdivision 1.Designation of a student loan advocate. The commissioner of commerce 
92.22 	must designate a student loan advocate within the Department of Commerce to provide 
92.23 	timely assistance to borrowers and to effectuate this chapter.
92.24 		Subd. 2.Duties. The student loan advocate has the following duties:
92.25 	(1) receive, review, and attempt to resolve complaints from borrowers, including but 
92.26 	not limited to attempts to resolve borrower complaints in collaboration with institutions of 
92.27 	higher education, student loan servicers, and any other participants in student loan lending;
92.28 	(2) compile and analyze data on borrower complaints received under clause (1);
92.29 	(3) help borrowers understand the rights and responsibilities under the terms of student 
92.30 	loans;
93.1 	(4) provide information to the public, state agencies, legislators, and relevant stakeholders 
93.2 	regarding the problems and concerns of borrowers;
93.3 	(5) make recommendations to resolve the problems of borrowers;
93.4 	(6) analyze and monitor the development and implementation of federal, state, and local 
93.5 	laws, regulations, and policies relating to borrowers, and recommend any changes deemed 
93.6 	necessary;
93.7 	(7) review the complete student loan history for any borrower who has provided written 
93.8 	consent to conduct the review;
93.9 	(8) increase public awareness that the advocate is available to assist in resolving the 
93.10 	student loan servicing concerns of potential and actual borrowers, institutions of higher 
93.11 	education, student loan servicers, and any other participant in student loan lending; and
93.12 	(9) take other actions as necessary to fulfill the duties of the advocate, as provided under 
93.13 	this section.
93.14 		Subd. 3.Student loan education course. The advocate must establish and maintain a 
93.15 	borrower education course. The course must include educational presentations and materials 
93.16 	regarding important topics in student loans, including but not limited to:
93.17 	(1) the meaning of important terminology used in student lending;
93.18 	(2) documentation requirements;
93.19 	(3) monthly payment obligations;
93.20 	(4) income-based repayment options;
93.21 	(5) the availability of state and federal loan forgiveness programs; and
93.22 	(6) disclosure requirements.
93.23 		Subd. 4.Reporting. By January 15 of each odd-numbered year, the advocate must report 
93.24 	to the legislative committees with jurisdiction over commerce and higher education. The 
93.25 	report must describe the advocate's implementation of this section, the outcomes achieved 
93.26 	by the advocate during the previous two years, and recommendations to improve the 
93.27 	regulation of student loan servicers.

93.28 	Sec. 50. REPEALER.
 93.29 	Minnesota Statutes 2022, sections 53B.01; 53B.02; 53B.03; 53B.04; 53B.05; 53B.06; 
93.30 	53B.07; 53B.08; 53B.09; 53B.10; 53B.11; 53B.12; 53B.13; 53B.14; 53B.15; 53B.16; 
94.1 	53B.17; 53B.18; 53B.19; 53B.20; 53B.21; 53B.22; 53B.23; 53B.24; 53B.25; 53B.26; and 
94.2 	53B.27, subdivisions 1, 2, 5, 6, and 7, are repealed.

94.3 	ARTICLE 4
94.4 	WEIGHTS AND MEASURES

94.5 	Section 1. Minnesota Statutes 2022, section 239.791, subdivision 8, is amended to read:
94.6 		Subd. 8.Disclosure; reporting. (a) A refinery or terminal, shall provide, at the time 
94.7 	gasoline is sold or transferred from the refinery or terminal, a bill of lading or shipping 
94.8 	manifest to the person who receives the gasoline. For oxygenated gasoline, the bill of lading 
94.9 	or shipping manifest must include the identity and the volume percentage or gallons of 
94.10 	oxygenate included in the gasoline, and it must state: "This fuel contains an oxygenate. Do 
94.11 	not blend this fuel with ethanol or with any other oxygenate." For nonoxygenated gasoline 
94.12 	sold or transferred after September 30, 1997, the bill or manifest must state: "This fuel is 
94.13 	not oxygenated. It must not be sold at retail in Minnesota." This subdivision does not apply 
94.14 	to sales or transfers of gasoline between refineries, between terminals, or between a refinery 
94.15 	and a terminal.
94.16 	(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline 
94.17 	must state the volume percentage of biofuel blended into gasoline delivered through a meter 
94.18 	into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14 
94.19 	and 16.
94.20 	(c) On or before the 23rd day of each month, a person responsible for the product must 
94.21 	report to the department, in the form prescribed by the commissioner, the gross number of 
94.22 	gallons of intermediate blends sold at retail by the person during the preceding calendar 
94.23 	month. The report must identify the number of gallons by blend type. For purposes of this 
94.24 	subdivision, "intermediate blends" means blends of gasoline and biofuel in which the biofuel 
94.25 	content, exclusive of denaturants and other permitted components, is greater than ten percent 
94.26 	and no more than 50 percent by volume. This paragraph only applies to a person who is 
94.27 	responsible for selling intermediate blends at retail at more than ten locations. A person 
94.28 	responsible for the product at fewer than ten locations is not precluded from reporting the 
94.29 	gross number of intermediate blends if a report is available.
94.30 	(d) All reports provided pursuant to paragraph (c) are nonpublic data as defined in section 
94.31 	13.02, subdivision 9.

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

95.1 	ARTICLE 5
95.2 	MISCELLANEOUS

95.3 	Section 1. FINANCIAL REVIEW OF GRANT AND BUSINESS SUBSIDY 
95.4 	RECIPIENTS.
 95.5 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
95.6 	meanings given.
95.7 	(b) "Grant" means a grant or business subsidy funded by an appropriation in this act.
95.8 	(c) "Grantee" means a business entity, as defined in Minnesota Statutes, section 5.001.
95.9 		Subd. 2.Financial information required; determination of ability to perform. Before 
95.10 	an agency awards a competitive, legislatively named, single source, or sole source grant, 
95.11 	the agency must assess the risk that a grantee cannot or would not perform the required 
95.12 	duties. In making this assessment, the agency must review the following information:
95.13 	(1) the grantee's history of performing duties similar to those required by the grant, 
95.14 	whether the size of the grant requires the grantee to perform services at a significantly 
95.15 	increased scale, and whether the size of the grant will require significant changes to the 
95.16 	operation of the grantee's organization;
95.17 	(2) for a grantee that is a nonprofit organization, the grantee's Form 990 or Form 990-EZ 
95.18 	filed with the Internal Revenue Service in each of the prior three years. If the grantee has 
95.19 	not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the 
95.20 	grantee must demonstrate to the grantor's satisfaction that the grantee is exempt and must 
95.21 	instead submit the grantee's most recent board-reviewed financial statements and 
95.22 	documentation of internal controls;
95.23 	(3) for a for-profit business, three years of federal and state tax returns, current financial 
95.24 	statements, certification that the business is not under bankruptcy proceedings, and disclosure 
95.25 	of any liens on its assets. If a business has not been in business long enough to have three 
95.26 	years of tax returns, the grantee must demonstrate to the grantor's satisfaction that the grantee 
95.27 	has appropriate internal financial controls;
95.28 	(4) evidence of registration and good standing with the secretary of state under Minnesota 
95.29 	Statutes, chapter 317A, or other applicable law;
95.30 	(5) if the grantee's total annual revenue exceeds $750,000, the grantee's most recent 
95.31 	financial audit performed by an independent third party in accordance with generally accepted 
95.32 	accounting principles; and
96.1 	(6) certification, provided by the grantee, that none of its principals have been convicted 
96.2 	of a financial crime.
96.3 		Subd. 3.Additional measures for some grantees. The agency may require additional 
96.4 	information and must provide enhanced oversight for grants that have not previously received 
96.5 	state or federal grants for similar amounts or similar duties and so have not yet demonstrated 
96.6 	the ability to perform the duties required under the grant on the scale required.
96.7 		Subd. 4.Assistance from administration. An agency without adequate resources or 
96.8 	experience to perform obligations under this section may contract with the commissioner 
96.9 	of administration to perform the agency's duties under this section.
96.10 		Subd. 5.Agency authority to not award grant. If an agency determines that there is 
96.11 	an appreciable risk that a grantee receiving a competitive, single source, or sole source grant 
96.12 	cannot or would not perform the required duties under the grant agreement, the agency must 
96.13 	notify the grantee and the commissioner of administration and give the grantee an opportunity 
96.14 	to respond to the agency's concerns. If the grantee does not satisfy the agency's concerns 
96.15 	within 45 days, the agency must not award the grant.
96.16 		Subd. 6.Legislatively named grantees. If an agency determines that there is an 
96.17 	appreciable risk that a grantee receiving a legislatively named grant cannot or would not 
96.18 	perform the required duties under the grant agreement, the agency must notify the grantee, 
96.19 	the commissioner of administration, and the chair and ranking minority member of the Ways 
96.20 	and Means Committee in the house of representatives, the chair and ranking minority member 
96.21 	of the Finance Committee in the senate, and the chairs and ranking minority members of 
96.22 	the committees in the house of representatives and the senate with primary jurisdiction over 
96.23 	the bill in which the money for the grant was appropriated. The agency must give the grantee 
96.24 	an opportunity to respond to the agency's concerns. If the grantee does not satisfy the agency's 
96.25 	concerns within 45 days, the agency must delay award of the grant until adjournment of the 
96.26 	next regular or special legislative session.
96.27 		Subd. 7.Subgrants. If a grantee will disburse the money received from the grant to 
96.28 	other organizations to perform duties required under the grant agreement, the agency must 
96.29 	be a party to agreements between the grantee and a subgrantee. Before entering agreements 
96.30 	for subgrants, the agency must perform the financial review required under this section with 
96.31 	respect to the subgrantees.
96.32 		Subd. 8.Effect. The requirements of this section are in addition to other requirements 
96.33 	imposed by law, the commissioner of administration under Minnesota Statutes, sections 
96.34 	16B.97 to 16B.98, or agency grant policy.

APPENDIX 

Repealed Minnesota Statutes: S2744-3 

No active language found for: 53B.01 

No active language found for: 53B.02 

No active language found for: 53B.03 

No active language found for: 53B.04 

No active language found for: 53B.05 

No active language found for: 53B.06 

No active language found for: 53B.07 

No active language found for: 53B.08 

No active language found for: 53B.09 

No active language found for: 53B.10 

No active language found for: 53B.11 

No active language found for: 53B.12 

No active language found for: 53B.13 

No active language found for: 53B.14 

No active language found for: 53B.15 

No active language found for: 53B.16 

No active language found for: 53B.17 

No active language found for: 53B.18 

No active language found for: 53B.19 

No active language found for: 53B.20 

No active language found for: 53B.21 

No active language found for: 53B.22 

No active language found for: 53B.23 

No active language found for: 53B.24 

No active language found for: 53B.25 

No active language found for: 53B.26 

No active language found for: 53B.27.1 

No active language found for: 53B.27.2 

No active language found for: 53B.27.5 

No active language found for: 53B.27.6 

No active language found for: 53B.27.7