1.1 	A bill for an act
1.2 	relating to financial institutions; modifying various provisions governing 
1.3 	nondepository financial institutions;amending Minnesota Statutes 2024, sections 
1.4 	47.20, subdivision 1; 47.59, subdivision 1; 47.60, subdivision 1; 53.04, subdivision 
1.5 	3a; 53B.74; 53C.09, subdivision 4; 56.002; 56.01; 56.05; 58.06, subdivision 2; 
1.6 	58B.051; 332.52, subdivision 3; 332B.04, subdivision 1; repealing Minnesota 
1.7 	Statutes 2024, sections 56.08; 332A.02, subdivision 2; 332A.04, subdivision 1; 
1.8 	332B.02, subdivision 2.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2024, section 47.20, subdivision 1, is amended to read:
1.11 		Subdivision 1.General authority. Pursuant to rules the commissioner of commerce 
1.12 	finds to be necessary and proper, if any, banks, savings banks, and savings associations 
1.13 	organized under the laws of this state or the United States, trust companies, trust companies 
1.14 	acting as fiduciaries, and other banking institutions subject to the supervision of the 
1.15 	commissioner of commerce, including residential mortgage originators and servicers under 
1.16 	chapter 58, and mortgagees or lenders approved or certified by the secretary of housing and 
1.17 	urban development or approved or certified by the administrator of veterans affairs, or 
1.18 	approved or certified by the administrator of the Farmers Home Administration or any 
1.19 	successor, or approved or certified by the Federal Home Loan Mortgage Corporation, or 
1.20 	approved or certified by the Federal National Mortgage Association, are authorized:
1.21 	(1) to make loans and advances of credit and purchases of obligations representing loans 
1.22 	and advances of credit which are insured or guaranteed by the secretary of housing and 
1.23 	urban development pursuant to the National Housing Act, as amended, or the administrator 
1.24 	of veterans affairs pursuant to the Servicemen's Readjustment Act of 1944, as amended, or 
1.25 	the administrator of the Farmers Home Administration or any successor pursuant to the 
2.1 	Consolidated Farm and Rural Development Act, Public Law 87-128, as amended, and to 
2.2 	obtain the insurance or guarantees;
2.3 	(2) to make loans secured by mortgages on real property and loans secured by a share 
2.4 	or shares of stock or a membership certificate or certificates issued to a stockholder or 
2.5 	member by a cooperative apartment corporation which the secretary of housing and urban 
2.6 	development, the administrator of veterans affairs, or the administrator of the Farmers Home 
2.7 	Administration or any successor has insured or guaranteed or made a commitment to insure 
2.8 	or guarantee, and to obtain the insurance or guarantees;
2.9 	(3) to make, purchase, or participate in such loans and advances of credit; including 
2.10 	reverse mortgage loans, notwithstanding anything in subdivision 4b, sections 47.58 and 
2.11 	334.01, and chapter 56 to the contrary; as would be eligible for purchase, in whole or in 
2.12 	part, by the Federal National Mortgage Association or the Federal Home Loan Mortgage 
2.13 	Corporation, but without regard to any limitation placed upon the maximum principal amount 
2.14 	of an eligible loan;
2.15 	(4) to make, purchase or participate in such loans and advances of credit secured by 
2.16 	mortgages on real property which are authorized or allowed by the Office of Thrift 
2.17 	Supervision or the Office of the Comptroller of the Currency, or any successor to these 
2.18 	federal agencies.

2.19 	Sec. 2. Minnesota Statutes 2024, section 47.59, subdivision 1, is amended to read:
2.20 		Subdivision 1.Definitions. For purposes of this section, the following definitions shall 
2.21 	apply.
2.22 	(a) "Actuarial method" has the meaning given the term in Code of Federal Regulations, 
2.23 	title 12, part 226, and appendix J thereto.
2.24 	(b) "Annual percentage rate" has the meaning given the term in Code of Federal 
2.25 	Regulations, title 12, part 226, but using the definition of "finance charge" used in this 
2.26 	section.
2.27 	(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale 
2.28 	contract.
2.29 	(d) "Business purpose" means a purpose other than a personal, family, household, or 
2.30 	agricultural purpose.
3.1 	(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with 
3.2 	the financial institution to pay obligations arising from the issuance to or use of the card by 
3.3 	another person.
3.4 	(f) "Consumer loan" means a loan made by a financial institution in which:
3.5 	(1) the debtor is a person other than an organization;
3.6 	(2) the debt is incurred primarily for a personal, family, or household purpose; and
3.7 	(3) the debt is payable in installments or a finance charge is made.
3.8 	(g) "Credit" means the right granted by a financial institution to a borrower to defer 
3.9 	payment of a debt, to incur debt and defer its payment, or to purchase property or services 
3.10 	and defer payment.
3.11 	(h) "Credit card" means a card or device issued under an arrangement pursuant to which 
3.12 	a financial institution gives to a cardholder the privilege of obtaining credit from the financial 
3.13 	institution or other person in purchasing or leasing property or services, obtaining loans, or 
3.14 	otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according 
3.15 	to the terms of the arrangement by transmitting information contained on the card or device 
3.16 	orally, in writing, by mechanical or electronic methods, or in any other manner. A transaction 
3.17 	is not "pursuant to a credit card" if the card or device is used solely in that transaction to:
3.18 	(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is 
3.19 	not obtained according to the terms of the arrangement;
3.20 	(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not 
3.21 	the payment results in a credit extension to the cardholder by the financial institution; or
3.22 	(3) effect an immediate transfer of funds from the cardholder's deposit account by 
3.23 	electronic or other means, whether or not the transfer results in a credit extension to the 
3.24 	cardholder by the financial institution.
3.25 	(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means 
3.26 	a sale of goods or services, or an interest in land, in which:
3.27 	(1) credit is granted by a seller who regularly engages as a seller in credit transactions 
3.28 	of the same kind; and
3.29 	(2) the debt is payable in installments or a finance charge is made.
3.30 	(j) "Finance charge" has the meaning given in Code of Federal Regulations, title 12, part 
3.31 	226, except that the following will not in any event be considered a finance charge:
4.1 	(1) a charge as a result of default or delinquency under subdivision 6 if made for actual 
4.2 	unanticipated late payment, delinquency, default, or other similar occurrence, and a charge 
4.3 	made for an extension or deferment under subdivision 5, unless the parties agree that these 
4.4 	charges are finance charges;
4.5 	(2) an additional charge under subdivision 6;
4.6 	(3) a discount, if a financial institution purchases a loan at less than the face amount of 
4.7 	the obligation or purchases or satisfies obligations of a cardholder pursuant to a credit card 
4.8 	and the purchase or satisfaction is made at less than the face amount of the obligation;
4.9 	(4) fees paid by a borrower to a broker, provided the financial institution or a person 
4.10 	described in subdivision 4 does not require use of the broker to obtain credit; or
4.11 	(5) a commission, expense reimbursement, or other sum received by a financial institution 
4.12 	or a person described in subdivision 4 in connection with insurance described in subdivision 
4.13 	6.
4.14 	(k) "Financial institution" means a state or federally chartered bank, a state or federally 
4.15 	chartered bank and trust, a trust company with banking powers, a state or federally chartered 
4.16 	saving bank, a state or federally chartered savings association, an industrial loan and thrift 
4.17 	company organized under chapter 53, a sales finance company organized under chapter 
4.18 	53C, a regulated lender organized under chapter 56, a mortgage originator or servicer 
4.19 	licensed under chapter 58, or an operating subsidiary of any such institution.
4.20 	(l) "Loan" means:
4.21 	(1) the creation of debt by the financial institution's payment of money to the borrower 
4.22 	or a third person for the account of the borrower;
4.23 	(2) the creation of debt pursuant to a credit card in any manner, including a cash advance 
4.24 	or the financial institution's honoring a draft or similar order for the payment of money 
4.25 	drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or 
4.26 	purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's 
4.27 	assignee;
4.28 	(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of 
4.29 	credit arrangement;
4.30 	(4) the creation of debt by a credit to an account with the financial institution upon which 
4.31 	the borrower is entitled to draw immediately;
4.32 	(5) the forbearance of debt arising from a loan; and
5.1 	(6) the creation of debt pursuant to open-end credit.
5.2 	"Loan" does not include the forbearance of debt arising from a sale or lease, a credit 
5.3 	sale contract, or an overdraft from a person's deposit account with a financial institution 
5.4 	which is not pursuant to a written agreement to pay overdrafts with the right to defer 
5.5 	repayment thereof.
5.6 	(m) "Official fees" means:
5.7 	(1) fees and charges which actually are or will be paid to public officials for determining 
5.8 	the existence of or for perfecting, releasing, terminating, or satisfying a security interest or 
5.9 	mortgage relating to a loan or credit sale, and any separate fees or charges which actually 
5.10 	are or will be paid to public officials for recording a notice described in section 580.032, 
5.11 	subdivision 1; and
5.12 	(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage 
5.13 	otherwise required by a financial institution in connection with a loan or credit sale, if the 
5.14 	premium does not exceed the fees and charges described in clause (1), which would otherwise 
5.15 	be payable.
5.16 	(n) "Organization" means a corporation, government, government subdivision or agency, 
5.17 	trust, estate, partnership, joint venture, cooperative, limited liability company, limited 
5.18 	liability partnership, or association.
5.19 	(o) "Person" means a natural person or an organization.
5.20 	(p) "Principal" means the total of:
5.21 	(1) the amount paid to, received by, or paid or repayable for the account of, the borrower; 
5.22 	and
5.23 	(2) to the extent that payment is deferred:
5.24 	(i) the amount actually paid or to be paid by the financial institution for additional charges 
5.25 	permitted under this section; and
5.26 	(ii) prepaid finance charges.

5.27 	Sec. 3. Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read:
5.28 		Subdivision 1.Definitions. For purposes of this section, the terms defined have the 
5.29 	meanings given them:
5.30 	(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower 
5.31 	for the borrower's own personal, family, or household purpose. A consumer small loan is 
6.1 	a short-term, unsecured loan to be repaid in a single installment. The cash advance of a 
6.2 	consumer small loan is equal to or less than $350. A consumer small loan includes an 
6.3 	indebtedness evidenced by but not limited to a promissory note or agreement to defer the 
6.4 	presentation of a personal check for a fee.
6.5 	(b) "Consumer small loan lender" is a financial institution as defined in section 47.59 
6.6 	or a business entity registered with the commissioner and engaged in the business of making
6.7 	or arranging consumer small loans. For purposes of this paragraph, arranging a consumer 
6.8 	small loan includes but is not limited to any substantial involvement to facilitate, market, 
6.9 	generate leads for, underwrite, or collect a consumer small loan.
6.10 	(c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly 
6.11 	rate, that relates the amount and timing of value received by the consumer to the amount 
6.12 	and timing of payments made. Annual percentage rate includes all interest, finance charges, 
6.13 	and fees. The annual percentage rate must be determined in accordance with either the 
6.14 	actuarial method or the United States Rule method.

6.15 	Sec. 4. Minnesota Statutes 2024, section 53.04, subdivision 3a, is amended to read:
6.16 		Subd. 3a.Loans. (a) The right to make loans, secured or unsecured, at the rates and on 
6.17 	the terms and other conditions permitted under chapters 47 and 334. Loans made under this 
6.18 	authority must be in amounts in compliance with section 53.05, clause (7). A licensee making 
6.19 	a loan under this chapter secured by a lien on real estate shall comply with the requirements 
6.20 	of section 47.20, subdivision 8. A licensee making a loan that is a consumer small loan, as 
6.21 	defined in section 47.60, subdivision 1, paragraph (a), must comply with section 47.60. A 
6.22 	licensee making a loan that is a consumer short-term loan, as defined in section 47.601, 
6.23 	subdivision 1, paragraph (d) (e), must comply with section 47.601.
6.24 	(b) Loans made under this subdivision may be secured by real or personal property, or 
6.25 	both. If the proceeds of a loan secured by a first lien on the borrower's primary residence 
6.26 	are used to finance the purchase of the borrower's primary residence, the loan must comply 
6.27 	with the provisions of section 47.20.
6.28 	(c) An agency or instrumentality of the United States government or a corporation 
6.29 	otherwise created by an act of the United States Congress or a lender approved or certified 
6.30 	by the secretary of housing and urban development, or approved or certified by the 
6.31 	administrator of veterans affairs, or approved or certified by the administrator of the Farmers 
6.32 	Home Administration, or approved or certified by the Federal Home Loan Mortgage 
6.33 	Corporation, or approved or certified by the Federal National Mortgage Association, that 
6.34 	engages in the business of purchasing or taking assignments of mortgage loans and undertakes 
7.1 	direct collection of payments from or enforcement of rights against borrowers arising from 
7.2 	mortgage loans, is not required to obtain a certificate of authorization under this chapter in 
7.3 	order to purchase or take assignments of mortgage loans from persons holding a certificate 
7.4 	of authorization under this chapter.
7.5 	(d) This subdivision does not authorize an industrial loan and thrift company to make 
7.6 	loans under an overdraft checking plan.

7.7 	Sec. 5. Minnesota Statutes 2024, section 53B.74, is amended to read:
7.8 	53B.74 VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL 
7.9 	REQUIREMENTS.
7.10 	(a) A licensee engaged in virtual currency business activities may include virtual currency 
7.11 	in the licensee's calculation of tangible net worth, by measuring the average value of the 
7.12 	virtual currency in United States dollar equivalent over the prior six months, excluding 
7.13 	control of virtual currency for a person entitled to the protections under section 53B.73.  is 
7.14 	not required to subtract virtual currency from total assets in the licensee's calculation of 
7.15 	tangible net worth if:
7.16 	(1) the licensee's day-to-day business includes incurring obligations to customers 
7.17 	denominated in the virtual currency;
7.18 	(2) the virtual currency asset has a corresponding liability denominated in the virtual 
7.19 	currency;
7.20 	(3) the virtual currency is unencumbered; and
7.21 	(4) the virtual currency assets that are not subtracted from total assets are limited to the 
7.22 	virtual currency assets that have a corresponding liability denominated in the same virtual 
7.23 	currency.
7.24 	(b) A licensee must maintain, for all virtual-currency business activity with or on behalf 
7.25 	of a person five years after the date of the activity, a record of:
7.26 	(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's 
7.27 	account in Minnesota, including:
7.28 	(i) the identity of the person;
7.29 	(ii) the form of the transaction;
7.30 	(iii) the amount, date, and payment instructions given by the person; and
8.1 	(iv) the account number, name, and United States Postal Service address of the person, 
8.2 	and, to the extent feasible, other parties to the transaction;
8.3 	(2) the aggregate number of transactions and aggregate value of transactions by the 
8.4 	licensee with or on behalf of the person and for the licensee's account in this state, expressed 
8.5 	in the United States dollar equivalent of the virtual currency for the previous 12 calendar 
8.6 	months;
8.7 	(3) each transaction in which the licensee exchanges one form of virtual currency for 
8.8 	money or another form of virtual currency with or on behalf of the person;
8.9 	(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities, 
8.10 	capital, income, and expenses;
8.11 	(5) each business-call report the licensee is required to create or provide to the department 
8.12 	or NMLS;
8.13 	(6) bank statements and bank reconciliation records for the licensee and the name, 
8.14 	account number, and United States Postal Service address of each bank the licensee uses 
8.15 	to conduct virtual-currency business activity with or on behalf of the person;
8.16 	(7) a report of any dispute with the person; and
8.17 	(8) a report of any virtual-currency business activity transaction with or on behalf of a 
8.18 	person which the licensee was unable to complete.
8.19 	(c) A licensee must maintain records required by paragraph (b) in a form that enables 
8.20 	the commissioner to determine whether the licensee is in compliance with this chapter, any 
8.21 	court order, and law of Minnesota other than this chapter.

8.22 	Sec. 6. Minnesota Statutes 2024, section 53C.09, subdivision 4, is amended to read:
8.23 		Subd. 4.Other law may apply. In lieu of this section and sections 53C.01, subdivisions 
8.24 	2, 4, and 13; 53C.08; 53C.10; and 53C.11, a retail seller or sales finance company may 
8.25 	proceed under section 47.59relating to credit sales made by a third party, subdivisions 4, 
8.26 	4a, and 6. In cases where the retail seller or sales finance company proceeds under section 
8.27 	47.59, the remaining provisions of sections 53C.01 to 53C.14 apply notwithstanding section 
8.28 	47.59.

9.1 	Sec. 7. Minnesota Statutes 2024, section 56.002, is amended to read:
9.2 	56.002 APPLICATION.
9.3 	This chapter does not apply to a person doing business under and as permitted by any 
9.4 	law of this state or of the United States relating to banks, savings associations, trust 
9.5 	companies, licensed pawnbrokers, a residential mortgage originator or servicer licensed 
9.6 	under chapter 58 that offers residential mortgage origination services or residential mortgage 
9.7 	servicing, or credit unions. Notwithstanding the provisions of section 56.01, an industrial 
9.8 	loan and thrift company under chapter 53 may contract for and receive the charges, including 
9.9 	those in section 56.155, authorized by this chapter without being licensed pursuant to this 
9.10 	chapter, but shall comply with all other provisions of this chapter when contracting for or 
9.11 	receiving charges on loans regulated by this chapter.

9.12 	Sec. 8. Minnesota Statutes 2024, section 56.01, is amended to read:
9.13 	56.01 NECESSITY OF LICENSE.
9.14 	(a) Except as authorized by this chapter and without first obtaining a license from the 
9.15 	commissioner, no person shall engage in the business of making loans of money, credit, 
9.16 	goods, or things in action, in an amount or of a value not exceeding that specified in section 
9.17 	56.131, subdivision 1, and charge, contract for, or receive on the loan a greater rate of 
9.18 	interest, discount, or consideration than the lender would be permitted by law to charge if 
9.19 	not a licensee under this chapter. A person must obtain a license from the commissioner 
9.20 	under this chapter before arranging a consumer short-term loan under section 47.601.
9.21 	(b) An agency or instrumentality of the United States government or a corporation 
9.22 	otherwise created by an act of the United States Congress or a lender approved or certified 
9.23 	by the secretary of housing and urban development, or approved or certified by the 
9.24 	administrator of veterans affairs, or approved or certified by the administrator of the Farmers 
9.25 	Home Administration, or approved or certified by the Federal Home Loan Mortgage 
9.26 	Corporation, or approved or certified by the Federal National Mortgage Association, that 
9.27 	engages in the business of purchasing or taking assignments of mortgage loans and undertakes 
9.28 	direct collection of payments from or enforcement of rights against borrowers arising from 
9.29 	mortgage loans, is not required to be licensed under this chapter in order to purchase or take 
9.30 	assignments of mortgage loans from licensees under this chapter.

10.1 	Sec. 9. Minnesota Statutes 2024, section 56.05, is amended to read:
10.2 	56.05 LICENSE; TO BE POSTED.
10.3 	(a) The license shall state the address at which the business is to be conducted and shall 
10.4 	state fully the name of the licensee, and if the licensee is a copartnership or association, the 
10.5 	names of the members thereof, and if a corporation, the date and place of its incorporation.
10.6 	(b) The license shall be kept conspicuously posted in the place of business of the licensee, 
10.7 	and shall not be transferable or assignable. For a licensee that offers service via the Internet, 
10.8 	the license number must be clearly displayed on each webpage or other document required 
10.9 	by an order issued by the commissioner.

10.10 	Sec. 10. Minnesota Statutes 2024, section 58.06, subdivision 2, is amended to read:
10.11 		Subd. 2.Application contents. (a) The application must contain the name and complete 
10.12 	business address or addresses of the license applicant. The license applicant must be a 
10.13 	partnership, limited liability partnership, association, limited liability company, corporation, 
10.14 	or other form of business organization, and the application must contain the names and 
10.15 	complete business addresses of each partner, member, director, and principal officer. The 
10.16 	application must also include a description of the activities of the license applicant, in the 
10.17 	detail and for the periods the commissioner may require.
10.18 	(b) A residential mortgage originator An applicant must submit a surety bond that meets 
10.19 	the requirements of section 58.08, subdivision 1a.
10.20 	(c) The application must also include all of the following:
10.21 	(1) an affirmation under oath that the applicant:
10.22 	(i) is in compliance with the requirements of section 58.125;
10.23 	(ii) will advise the commissioner of any material changes to the information submitted 
10.24 	in the most recent application within ten days of the change;
10.25 	(iii) will advise the commissioner in writing immediately of any bankruptcy petitions 
10.26 	filed against or by the applicant or licensee;
10.27 	(iv) will maintain at all times a surety bond in the amount of at least $100,000 $125,000;
10.28 	(v) complies with federal and state tax laws; and
10.29 	(vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed property law;
10.30 	(2) information as to the mortgage lending, servicing, or brokering experience of the 
10.31 	applicant and persons in control of the applicant;
11.1 	(3) information as to criminal convictions, excluding traffic violations, of persons in 
11.2 	control of the license applicant;
11.3 	(4) whether a court of competent jurisdiction has found that the applicant or persons in 
11.4 	control of the applicant have engaged in conduct evidencing gross negligence, fraud, 
11.5 	misrepresentation, or deceit in performing an act for which a license is required under this 
11.6 	chapter;
11.7 	(5) whether the applicant or persons in control of the applicant have been the subject of: 
11.8 	an order of suspension or revocation, cease and desist order, or injunctive order, or order 
11.9 	barring involvement in an industry or profession issued by this or another state or federal 
11.10 	regulatory agency or by the Secretary of Housing and Urban Development within the ten-year 
11.11 	period immediately preceding submission of the application; and
11.12 	(6) other information required by the commissioner.

11.13 	Sec. 11. Minnesota Statutes 2024, section 58B.051, is amended to read:
11.14 	58B.051 REGISTRATION FOR LENDERS.
11.15 	(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender 
11.16 	before providing services in Minnesota. A lender must not offer or make a student loan to 
11.17 	a resident of Minnesota without first registering with the commissioner as provided in this 
11.18 	section.
11.19 	(b) A registration application must include:
11.20 	(1) the lender's name;
11.21 	(2) the lender's address;
11.22 	(3) the names of all officers, directors, owners, or other persons in control of an applicant, 
11.23 	as defined in section 58B.02, subdivision 6; and
11.24 	(4) any other information the commissioner requires by rule.
11.25 	(c) Registration issued or renewed expires December 31 of each year. A lender must 
11.26 	renew the lender's registration on an annual basis.
11.27 	(d) The commissioner may adopt and enforce:
11.28 	(1) registration procedures for lenders, which may include using the Nationwide 
11.29 	Multistate Licensing System and Registry;
11.30 	(2) nonrefundable registration fees for lenders, which may include fees for using the 
11.31 	Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;
12.1 	(3) procedures and nonrefundable fees to renew a lender's registration, which may include 
12.2 	fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be 
12.3 	paid directly by the lender; and
12.4 	(4) alternate registration procedures and nonrefundable fees for postsecondary education 
12.5 	institutions that offer student loans.

12.6 	Sec. 12. Minnesota Statutes 2024, section 332.52, subdivision 3, is amended to read:
12.7 		Subd. 3.Credit services organization. (a) "Credit services organization" means any 
12.8 	person that, with respect to the extension of credit by others, sells, provides, performs, or 
12.9 	represents that the person will sell, provide, or perform, in return for the payment of money 
12.10 	or other valuable consideration, any of the following services:
12.11 	(1) improve a buyer's credit record, history, or rating;
12.12 	(2) obtain an extension of credit for a buyer; or
12.13 	(3) provide advice or assistance to a buyer with regard to either clause (1) or (2).
12.14 	(b) "Credit services organization" does not include:
12.15 	(1) any person authorized to make loans or extensions of credit under the laws of this 
12.16 	state or the United States, if the person is subject to regulation and supervision by this state 
12.17 	or the United States or a lender approved by the United States Secretary of Housing and 
12.18 	Urban Development for participation in any mortgage insurance program under the National 
12.19 	Housing Act, United States Code, title 12, section 1701 et seq.;
12.20 	(2) any bank, savings bank, or savings and loan institution whose deposits or accounts 
12.21 	are eligible for insurance by the Federal Deposit Insurance Corporation or a subsidiary of 
12.22 	the bank, savings bank, or savings and loan institution;
12.23 	(3) any credit union, federal credit union, or out-of-state credit union doing business in 
12.24 	this state;
12.25 	(4) any nonprofit organization exempt from taxation under section 501(c)(3) of the 
12.26 	Internal Revenue Code of 1986, as amended through December 31, 1990;
12.27 	(5) any person licensed as a prorating agency registered as a debt management services 
12.28 	provider or debt settlement services provider under the laws of this state, if the person is 
12.29 	acting within the course and scope of that license the applicable registration;
12.30 	(6) any person licensed as a real estate broker by this state if the person is acting within 
12.31 	the course and scope of that license;
13.1 	(7) any person licensed as a collection agency under the laws of this state if the person 
13.2 	is acting within the course and scope of that license;
13.3 	(8) any person licensed to practice law in this state if the person renders services within 
13.4 	the course and scope of practice as an attorney;
13.5 	(9) any broker-dealer registered with the Securities and Exchange Commission or the 
13.6 	Commodity Futures Trading Commission if the broker-dealer is acting within the course 
13.7 	and scope of that regulation; or
13.8 	(10) any consumer reporting agency as defined in the federal Fair Credit Reporting Act, 
13.9 	United States Code, title 15, sections 1681 to 1681t, as amended through December 31, 
13.10 	1990.

13.11 	Sec. 13. Minnesota Statutes 2024, section 332B.04, subdivision 1, is amended to read:
13.12 		Subdivision 1.Form. Application for registration to operate as a debt settlement services 
13.13 	provider in this state must be made in writing to the commissioner, under oath, in the form 
13.14 	prescribed by the commissioner, and must contain:
13.15 	(1) the full name of each principal of the entity applying;
13.16 	(2) the address, which must not be a post office box, and the telephone number and, if 
13.17 	applicable, email address of the applicant;
13.18 	(3) consent to the jurisdiction of the courts of this state;
13.19 	(4) the name and address of the registered agent authorized to accept service of process 
13.20 	on behalf of the applicant or appointment of the commissioner as the applicant's agent for 
13.21 	purposes of accepting service of process;
13.22 	(5) disclosure of:
13.23 	(i) whether any controlling or affiliated party has ever been convicted of a crime or found 
13.24 	civilly liable for an offense involving moral turpitude, including forgery, embezzlement, 
13.25 	obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any 
13.26 	other similar offense or violation, or any violation of a federal or state law or regulation in 
13.27 	connection with activities relating to the rendition of debt settlement services or involving 
13.28 	any consumer fraud, false advertising, deceptive trade practices, or similar consumer 
13.29 	protection law;
13.30 	(ii) any judgments, private or public litigation, tax liens, written complaints, administrative 
13.31 	actions, or investigations by any government agency against the applicant or any officer, 
14.1 	director, manager, or shareholder owning more than five percent interest in the applicant, 
14.2 	unresolved or otherwise, filed or otherwise commenced within the preceding ten years;
14.3 	(iii) whether the applicant or any person employed by the applicant has had a record of 
14.4 	having defaulted in the payment of money collected for others, including the discharge of 
14.5 	debts through bankruptcy proceedings; and
14.6 	(iv) whether the applicant's license or registration to provide debt settlement services in 
14.7 	any other state has ever been revoked or suspended;
14.8 	(6) a copy of the applicant's standard debt settlement services agreement that the applicant 
14.9 	intends to execute with debtors; and
14.10 	(7) proof of accreditation, unless the applicant submits an affidavit attesting that the 
14.11 	applicant does not provide credit counseling services; and
14.12 	(8) (7) any other information and material as the commissioner may require.
14.13 	The commissioner may, for good cause shown, temporarily waive any requirement of 
14.14 	this subdivision.

14.15 	Sec. 14. REPEALER.
 14.16 	Minnesota Statutes 2024, sections 56.08; 332A.02, subdivision 2; 332A.04, subdivision 
14.17 	1; and 332B.02, subdivision 2, are repealed.

APPENDIX 

Repealed Minnesota Statutes: 26-06143 

56.08 ANNUAL LICENSE FEE.
Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year. 

332A.02 DEFINITIONS.Subd. 2.Accreditation. 
"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc. 

332A.04 REGISTRATION.Subdivision 1.Form. 
Application for registration to operate as a debt management services provider in this state must be made in writing to the commissioner, under oath, in the form prescribed by the commissioner, and must contain: 

(1) the full name of each principal of the entity applying; 

(2) the address, which must not be a post office box, and the telephone number and, if applicable, email address, of the applicant; 

(3) identification of the trust account required under section 332A.13; 

(4) consent to the jurisdiction of the courts of this state; 

(5) the name and address of the registered agent authorized to accept service of process on behalf of the applicant or appointment of the commissioner as the applicant's agent for purposes of accepting service of process; 

(6) disclosure of: 

(i) whether any controlling or affiliated party has ever been convicted of a crime or found civilly liable for an offense involving moral turpitude, including forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any other similar offense or violation, or any violation of a federal or state law or regulation in connection with activities relating to the rendition of debt management services or involving any consumer fraud, false advertising, deceptive trade practices, or similar consumer protection law; 

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative actions, or investigations by any government agency against the applicant or any officer, director, manager, or shareholder owning more than five percent interest in the applicant, unresolved or otherwise, filed or otherwise commenced within the preceding ten years; 

(iii) whether the applicant or any person employed by the applicant has had a record of having defaulted in the payment of money collected for others, including the discharge of debts through bankruptcy proceedings; and 

(iv) whether the applicant's license or registration to provide debt management services in any other state has ever been revoked or suspended; 

(7) a copy of the applicant's standard debt management services agreement that the applicant intends to execute with debtors; 

(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt prorater immediately before August 1, 2007; and 

(9) any other information and material as the commissioner may require. 

The commissioner may, for good cause shown, temporarily waive any requirement of this subdivision. 

332B.02 DEFINITIONS.Subd. 2.Accreditation. 
"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.