HF 2680

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 04:00pm

A bill for an act
relating to commerce; establishing a biennial budget for Department of Commerce;
modifying various provisions governing insurance; establishing a strengthen
Minnesota homes program; regulating money transmitters; establishing and
modifying provisions governing energy, renewable energy, and utility regulation;
establishing a state competitiveness fund; making technical changes; establishing
penalties; authorizing administrative rulemaking; requiring reports; appropriating
money; amending Minnesota Statutes 2022, sections 46.131, subdivision 11;
62D.02, by adding a subdivision; 62D.095, subdivisions 2, 3, 4, 5; 62Q.46,
subdivisions 1, 3; 62Q.81, subdivision 4, by adding a subdivision; 216B.62,
subdivision 3b; 216C.264, subdivision 5, by adding subdivisions; 216C.375,
subdivisions 1, 3, 10, 11; proposing coding for new law in Minnesota Statutes,
chapters 53B; 65A; 216C; repealing Minnesota Statutes 2022, sections 53B.01;
53B.02; 53B.03; 53B.04; 53B.05; 53B.06; 53B.07; 53B.08; 53B.09; 53B.10;
53B.11; 53B.12; 53B.13; 53B.14; 53B.15; 53B.16; 53B.17; 53B.18; 53B.19;
53B.20; 53B.21; 53B.22; 53B.23; 53B.24; 53B.25; 53B.26; 53B.27, subdivisions
1, 2, 5, 6, 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

COMMERCE FINANCE

Section 1. new text begin APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 235,565,000 new text end

new text begin $ new text end

new text begin 78,932,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 231,608,000 new text end	new text begin 74,927,000 new text end
new text begin Special Revenue new text end	new text begin 2,093,000 new text end	new text begin 2,093,000 new text end
new text begin Workers' Compensation Fund new text end	new text begin 788,000 new text end	new text begin 815,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,076,000 new text end	new text begin 1,097,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin 2,372,000 new text end

new text begin 2,492,000 new text end

new text begin (a) $400,000 each year is for a grant to Prepare
and Prosper to develop, market, evaluate, and
distribute a financial services inclusion
program that (1) assists low-income and
financially underserved populations to build
savings and strengthen credit, and (2) provides
services to assist low-income and financially
underserved populations to become more
financially stable and secure. Money
remaining after the first year is available for
the second year.
new text end

new text begin (b) $254,000 each year is to administer the
requirements of Minnesota Statutes, chapter
58B.
new text end

new text begin Subd. 3. new text end new text begin Administrative Services new text end

new text begin 9,158,000 new text end

new text begin 9,415,000 new text end

new text begin (a) $353,000 each year is for system
modernization and cybersecurity upgrades for
the unclaimed property program.
new text end

new text begin (b) $586,000 in the first year and $608,000 in
the second year are for additional operations
of the unclaimed property program.
new text end

new text begin (c) $249,000 each year is for the senior safe
fraud prevention program.
new text end

new text begin Subd. 4. new text end new text begin Telecommunications new text end

new text begin 3,221,000 new text end

new text begin 3,261,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,128,000 new text end	new text begin 1,168,000 new text end
new text begin Special Revenue new text end	new text begin 2,093,000 new text end	new text begin 2,093,000 new text end

new text begin $2,093,000 each year is from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers:
new text end

new text begin (1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This transfer
is subject to Minnesota Statutes, section
16A.281;
new text end

new text begin (2) $290,000 each year is to the chief
information officer to coordinate technology
accessibility and usability;
new text end

new text begin (3) $133,000 each year is to the Legislative
Coordinating Commission for captioning
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; and
new text end

new text begin (4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants or services to other state
agencies related to accessibility of web-based
services.
new text end

new text begin Subd. 5. new text end new text begin Enforcement new text end

new text begin 7,433,000 new text end

new text begin 7,621,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 7,225,000 new text end	new text begin 7,406,000 new text end
new text begin Workers' Compensation new text end	new text begin 208,000 new text end	new text begin 215,000 new text end

new text begin (a) $811,000 each year is for five additional
peace officers in the Commerce Fraud Bureau.
Money under this paragraph is transferred
from the general fund to the insurance fraud
prevention account under Minnesota Statutes,
section 45.0135, subdivision 6.
new text end

new text begin (b) $345,000 each year is for additional staff
to focus on market conduct examinations.
new text end

new text begin (c) $283,000 each year is for the law
enforcement salary increases authorized under
Laws 2021, chapter 4, article 9, section 1.
new text end

new text begin (d) $41,000 in fiscal year 2024 and $21,000
in fiscal year 2025 are for body cameras worn
by Commerce Fraud Bureau agents.
new text end

new text begin (e) $208,000 in the first year and $215,000 in
the second year are from the workers'
compensation fund.
new text end

new text begin Subd. 6. new text end new text begin Insurance new text end

new text begin 9,317,000 new text end

new text begin 9,534,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,737,000 new text end	new text begin 8,934,000 new text end
new text begin Workers' Compensation new text end	new text begin 580,000 new text end	new text begin 600,000 new text end

new text begin (a) $34,000 each year is for continuing
coverage of preventive services.
new text end

new text begin (b) $136,000 each year is to advance
standardized health plan options.
new text end

new text begin (c) $318,000 each year is to conduct a
feasibility study on a proposal to offer free
primary care to Minnesotans. The base in
fiscal year 2026 is $0.
new text end

new text begin (d) $105,000 each year is to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26.
new text end

new text begin (e) $180,000 each year is for additional staff
to focus on property- and casualty-related
insurance products.
new text end

new text begin (f) $580,000 in the first year and $600,000 in
the second year are from the workers'
compensation fund.
new text end

new text begin Subd. 7. new text end new text begin Weights and Measures Division new text end

new text begin 1,531,000 new text end

new text begin 1,556,000 new text end

new text begin Subd. 8. new text end new text begin Energy Resources new text end

new text begin 201,457,000 new text end

new text begin 43,956,000 new text end

new text begin (a) $150,000 each year is to remediate
vermiculite insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $61,500,000 in the first year is transferred
from the general fund to the solar for schools
program account in the special revenue fund
for grants under the solar for schools program
established under Minnesota Statutes, section
216C.375. The money under this paragraph
must be expended on schools located outside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779.
new text end

new text begin (c) $1,138,000 in the first year is to provide
financial assistance to schools that are state
colleges and universities to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. This
appropriation must be expended on schools
located outside the electric service territory of
the public utility that is subject to Minnesota
Statutes, section 116C.779. Money under this
paragraph is available until June 30, 2034.
Any money remaining on June 30, 2034,
cancels to the general fund.
new text end

new text begin (d) $189,000 each year is for activities
associated with a utility's implementation of
a natural gas innovation plan under Minnesota
Statutes, section 216B.2427.
new text end

new text begin (e) $2,630,000 in fiscal year 2024 and
$21,340,000 in fiscal year 2025 are for
preweatherization work to serve additional
households and allow for services that would
otherwise be denied due to current federal
limitations related to the federal weatherization
assistance program. Money under this
paragraph is transferred from the general fund
to the preweatherization account in the special
revenue fund under Minnesota Statutes,
section 216C.264, subdivision 1c. The base
in fiscal year 2026 is $690,000 and the base
in fiscal year 2027 is $690,000.
new text end

new text begin (f) $16,239,000 each year is for the
strengthening Minnesota homes program
under Minnesota Statutes, section 65A.63,
subdivision 4. Money under this paragraph is
transferred from the general fund to the
strengthening Minnesota homes account in
the special revenue fund. The base in fiscal
year 2026 is $1,239,000 and the base in fiscal
year 2027 is $1,239,000.
new text end

new text begin (g) $113,750,000 in fiscal year 2024 is to
provide state matching funds, technical
assistance, and local grant development
assistance, and to develop a web-based
tracking mechanism. Money under this
paragraph is transferred from the general fund
to the state competitiveness account
established under Minnesota Statutes, section
216C.391.
new text end

new text begin Subd. 9. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,076,000 new text end

new text begin 1,097,000 new text end

new text begin This appropriation is from the petroleum tank
fund.
new text end

Sec. 3. new text begin PREMIUM SECURITY ACCOUNT TRANSFER.
new text end

new text begin $204,630,000 in fiscal year 2026 is transferred from the premium security plan account
under Minnesota Statutes, section 62E.25, subdivision 1, to the general fund. This is a
onetime transfer.
new text end

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text begin RENEWABLE DEVELOPMENT FINANCE. new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2023 regular or
special legislative session, the appropriation must be given effect only once.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,600,000 new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin "Made in Minnesota" Administration new text end

new text begin $100,000 each year is to administer the "Made
in Minnesota" solar energy production
incentive program under Minnesota Statutes,
section 216C.417. Any unspent amount
remaining on June 30, 2025, cancels to the
renewable development account.
new text end

new text begin Subd. 3. new text end new text begin Third-Party Evaluator new text end

new text begin $500,000 each year is for costs associated with
any third-party expert evaluation of a proposal
submitted in response to a request for proposal
to the Renewable Development Advisory
Group under Minnesota Statutes, section
116C.779, subdivision 1, paragraph (l). No
portion of this appropriation may be expended
or retained by the commissioner of commerce.
Any money appropriated under this paragraph
that is unexpended at the end of a fiscal year
cancels to the renewable development account.
new text end

new text begin Subd. 4. new text end new text begin Microgrid Research and Application new text end

new text begin (a) $1,000,000 the first year and $400,000 the
second year are for a grant to the University
of St. Thomas Center for Microgrid Research
for the purposes of paragraph (b). The base in
fiscal year 2026 is $400,000.
new text end

new text begin (b) The appropriations in this subdivision must
be used by the University of St. Thomas
Center for Microgrid Research to:
new text end

new text begin (1) increase the center's capacity to provide
industry partners opportunities to test
near-commercial microgrid products on a
real-world scale and to multiply opportunities
for innovative research;
new text end

new text begin (2) procure advanced equipment and controls
to enable the extension of the university's
microgrid to additional buildings; and
new text end

new text begin (3) expand (i) hands-on educational
opportunities for undergraduate and graduate
electrical engineering students to increase
understanding of microgrid operations, and
(ii) partnerships with community colleges.
new text end

ARTICLE 3

INSURANCE POLICY

Section 1.

Minnesota Statutes 2022, section 62D.02, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Preventive items and services. new text end

new text begin "Preventive items and services" has the
meaning given in section 62Q.46, subdivision 1, paragraph (a).
new text end

Sec. 2.

Minnesota Statutes 2022, section 62D.095, subdivision 2, is amended to read:

Subd. 2.

Co-payments.

A health maintenance contract may impose a co-payment and
coinsurance consistent with the provisions of the Affordable Care Act as defined under
section 62A.011, subdivision 1a new text begin , and for items and services that are not preventive items
and services new text end .

Sec. 3.

Minnesota Statutes 2022, section 62D.095, subdivision 3, is amended to read:

Subd. 3.

Deductibles.

A health maintenance contract deleted text begin may deleted text end new text begin must not new text end impose a deductible
deleted text begin consistent with the provisions of the Affordable Care Act as defined under section 62A.011,
subdivision 1a deleted text end new text begin new text end new text begin for preventive items and services new text end .

Sec. 4.

Minnesota Statutes 2022, section 62D.095, subdivision 4, is amended to read:

Subd. 4.

Annual out-of-pocket maximums.

A health maintenance contract deleted text begin may deleted text end new text begin must
not new text end impose an annual out-of-pocket maximum deleted text begin consistent with the provisions of the
Affordable Care Act as defined under section 62A.011, subdivision 1a deleted text end new text begin for services rendered
that are not listed under section 62D.02, subdivision 17, or for preventive items and services new text end .

Sec. 5.

Minnesota Statutes 2022, section 62D.095, subdivision 5, is amended to read:

Subd. 5.

Exceptions.

deleted text begin No deleted text end Co-payments or deductibles deleted text begin may deleted text end new text begin must not new text end be imposed on
preventive deleted text begin health care deleted text end new text begin items and new text end services deleted text begin consistent with the provisions of the Affordable
Care Act as defined under section 62A.011, subdivision 1a deleted text end .

Sec. 6.

Minnesota Statutes 2022, section 62Q.46, subdivision 1, is amended to read:

Subdivision 1.

Coverage for preventive items and services.

(a) "Preventive items and
services" has the meaning specified in the Affordable Care Act. new text begin Preventive items and services
includes:
new text end

new text begin (1) evidence-based items or services that have in effect a rating of A or B in the current
recommendations of the United States Preventive Services Task Force with respect to the
individual involved;
new text end

new text begin (2) immunizations for routine use in children, adolescents, and adults that have in effect
a recommendation from the Advisory Committee on Immunization Practices of the Centers
for Disease Control and Prevention with respect to the individual involved. For purposes
of this clause, a recommendation from the Advisory Committee on Immunization Practices
of the Centers for Disease Control and Prevention is considered in effect after the
recommendation has been adopted by the Director of the Centers for Disease Control and
Prevention, and a recommendation is considered to be for routine use if the recommendation
is listed on the Immunization Schedules of the Centers for Disease Control and Prevention;
new text end

new text begin (3) with respect to infants, children, and adolescents, evidence-informed preventive care
and screenings provided for in comprehensive guidelines supported by the Health Resources
and Services Administration;
new text end

new text begin (4) with respect to women, such additional preventive care and screenings not listed
with a rating of A or B by the United States Preventive Services Task Force but provided
for in comprehensive guidelines supported by the Health Resources and Services
Administration; and
new text end

new text begin (5) all contraceptive methods established in guidelines published by the United States
Food and Drug Administration.
new text end

(b) A health plan company must provide coverage for preventive items and services at
a participating provider without imposing cost-sharing requirements, including a deductible,
coinsurance, or co-payment. Nothing in this section prohibits a health plan company that
has a network of providers from excluding coverage or imposing cost-sharing requirements
for preventive items or services that are delivered by an out-of-network provider.

(c) A health plan company is not required to provide coverage for any items or services
specified in any recommendation or guideline described in paragraph (a) if the
recommendation or guideline is no longer included as a preventive item or service as defined
in paragraph (a). Annually, a health plan company must determine whether any additional
items or services must be covered without cost-sharing requirements or whether any items
or services are no longer required to be covered.

(d) Nothing in this section prevents a health plan company from using reasonable medical
management techniques to determine the frequency, method, treatment, or setting for a
preventive item or service to the extent not specified in the recommendation or guideline.

(e) This section does not apply to grandfathered plans.

(f) This section does not apply to plans offered by the Minnesota Comprehensive Health
Association.

Sec. 7.

Minnesota Statutes 2022, section 62Q.46, subdivision 3, is amended to read:

Subd. 3.

Additional services not prohibited.

Nothing in this section prohibits a health
plan company from providing coverage for preventive items and services in addition to
those specified deleted text begin in the Affordable Care Act deleted text end new text begin under subdivision 1, paragraph (a) new text end , or from
denying coverage for preventive items and services that are not recommended as preventive
items and services new text begin specified new text end under deleted text begin the Affordable Care Act deleted text end new text begin subdivision 1, paragraph (a) new text end . A
health plan company may impose cost-sharing requirements for a treatment not described
deleted text begin in the Affordable Care Act deleted text end new text begin under subdivision 1, paragraph (a), new text end even if the treatment results
from a preventive item or service described deleted text begin in the Affordable Care Act deleted text end new text begin under subdivision
1, paragraph (a) new text end .

Sec. 8.

Minnesota Statutes 2022, section 62Q.81, subdivision 4, is amended to read:

Subd. 4.

Essential health benefits; definition.

For purposes of this section, "essential
health benefits" has the meaning given under section 1302(b) of the Affordable Care Act
and includes:

(1) ambulatory patient services;

(2) emergency services;

(3) hospitalization;

(4) laboratory services;

(5) maternity and newborn care;

(6) mental health and substance use disorder services, including behavioral health
treatment;

(7) pediatric services, including oral and vision care;

(8) prescription drugs;

(9) preventive and wellness services and chronic disease management;

(10) rehabilitative and habilitative services and devices; and

(11) additional essential health benefits included in the EHB-benchmark plan, as defined
under the Affordable Care Act new text begin , and preventive items and services, as defined under section
62Q.46, subdivision 1, paragraph (a) new text end .

Sec. 9.

Minnesota Statutes 2022, section 62Q.81, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Standard plans. new text end

new text begin (a) A health plan company that offers individual health plans
must ensure that no less than one individual health plan at each level of coverage described
in subdivision 1, paragraph (b), clause (3), that they offer in each geographic rating area
they serve, conforms to the standard plan parameters as determined by the commissioner
under paragraph (e).
new text end

new text begin (b) An individual health plan offered under this subdivision must:
new text end

new text begin (1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection
process;
new text end

new text begin (2) marketed as standard plans and in the same manner as other individual health plans
offered by the health plan company; and
new text end

new text begin (3) offered for purchase to any individual.
new text end

new text begin (c) This subdivision does not apply to catastrophic plans, grandfathered plans, small
group health plans, large group health plans, health savings accounts, qualified high
deductible health benefit plans, limited health benefit plans, or short-term limited-duration
health insurance policies.
new text end

new text begin (d) Health plan companies must meet the requirements in this subdivision separately for
plans offered through MNsure under chapter 62V and plans offered outside of MNsure.
new text end

new text begin (e) The commissioner of commerce, in consultation with the commissioner of health,
shall annually determine standard plan parameters, including but not limited to cost-sharing
structure and covered benefits, that comprise a standard plan in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, and applies to individual
health plans offered, issued, or renewed on or after that date.
new text end

ARTICLE 4

STRENGTHEN MINNESOTA HOMES

Section 1.

new text begin [65A.60] PREMIUM DISCOUNT OR INSURANCE RATE REDUCTION;
CONSTRUCTION AND CERTIFICATION.
new text end

new text begin (a) For purposes of sections 65A.60 to 65A.63:
new text end

new text begin (1) "commissioner" means the commissioner of commerce;
new text end

new text begin (2) "insurable property" means a residential property certified as meeting the Fortified
For Safe Living Standards (FFSLS), as may be adopted from time to time by the Institute
for Business and Home Safety (IBHS) or a successor entity, or the Fortified Commercial
Standard (FCS), as may be adopted from time to time by IBHS; and
new text end

new text begin (3) "insurer" has the meaning given in section 65A.27, subdivision 5.
new text end

new text begin (b) An insurer must provide a premium discount or insurance rate reduction in an amount
and manner as established in paragraph (h) for an insurable property. An insurer may offer
additional adjustments in deductibles, other credit rate differentials, or a combination thereof,
collectively referred to as adjustments. An adjustment must be made available under the
terms specified under this section to an owner who builds or locates a new insurable property
in Minnesota in order to resist loss due to catastrophic windstorm events.
new text end

new text begin (c) An insurable property must be certified as conforming to FFSLS or FCS criteria only
after inspection and certification by an IBHS-certified inspector.
new text end

new text begin (d) An owner of insurable property claiming an adjustment must maintain the IBHS
certification documentation, which is considered proof of compliance with the FFSLS or
FCS requirements.
new text end

new text begin (e) The records required by this section are subject to audit by the commissioner or the
commissioner's representative.
new text end

new text begin (f) Evidence of IBHS certification must be presented to the insurer or potential insurer
of a property owner before the adjustment becomes effective for the insurable property.
new text end

new text begin (g) The records that must be maintained under paragraph (d) must be presented to the
insurer or potential insurer of a property owner before the adjustment becomes effective
for the insurable property.
new text end

new text begin (h) An insurer required to submit rates and rating plans to the commissioner must submit
an actuarially justified rating plan for a person who builds an insurable property to comply
with this section. In addition to the requirements of this section, an insurer may voluntarily
offer a more generous mitigation adjustment that the insurer deems appropriate. An insurer
is prohibited from offering a mitigation adjustment that does not meet the minimum
requirements of this section.
new text end

new text begin (i) The commissioner may adopt rules as necessary to implement this section.
new text end

Sec. 2.

new text begin [65A.61] PREMIUM DISCOUNT OR INSURANCE RATE REDUCTION;
FORTIFIED EXISTING HOMES.
new text end

new text begin (a) An insurer must provide a premium discount or insurance rate reduction in an amount
and manner as established in paragraph (e) for an insurable property. An insurer may offer
additional adjustments in deductibles, other credit rate differentials, or a combination thereof,
collectively referred to as adjustments. An adjustment must be available under the terms
specified in this section to any owner who retrofits an insurable property located in Minnesota
in order to resist loss due to catastrophic windstorm events.
new text end

new text begin (b) To obtain the adjustment provided in this section, an insurable property must be
retrofitted to the requirements in the Fortified Home: Highwind and Hail Standards (FHWH),
as may be adopted from time to time by the IBHS or a successor entity.
new text end

new text begin (c) An insurable property must be certified as conforming to Fortified Commercial
Standard or Fortified Home requirements only after an IBHS-certified inspector inspects
and certifies the insurable property.
new text end

new text begin (d) An owner of insurable property claiming an adjustment under this section must
maintain the IBHS certification documentation, which is considered proof of compliance
with the FCS or Fortified Home requirements described under paragraphs (b) and (c). The
certification must be presented to the insurer or potential insurer of a property owner before
the adjustment becomes effective for the insurable property.
new text end

new text begin (e) An insurer required to submit rates and rating plans to the commissioner must submit
an actuarially justified rating plan for a person who retrofits an insurable property to comply
with the sets of alternatives provided in paragraph (b). The adjustment only applies to
policies that provide wind coverage and may apply to that portion of the premium for wind
coverage or to the total premium if the insurer does not separate the premium for wind
coverage in the insurer's rate filing. The adjustment applies exclusively to the premium
designated for the improved insurable property. In addition to the requirements of this
section, an insurer may voluntarily offer any other mitigation adjustment that the insurer
deems appropriate.
new text end

new text begin (f) The commissioner may adopt rules as necessary to implement this section.
new text end

Sec. 3.

new text begin [65A.62] ENDORSEMENT OFFER TO UPGRADE HOME TO FORTIFIED
STANDARD.
new text end

new text begin (a) An insurer writing homeowners insurance must offer a fortified roof endorsement
to upgrade a nonfortified home that is otherwise eligible for a fortified standard to a fortified
standard identified under section 65A.61 when the insured home incurs damage covered
by the policy that requires the roof to be replaced. The endorsement must upgrade the
nonfortified home consistent with the fortified requirements for the geographic area in which
the nonfortified home is located.
new text end

new text begin (b) The endorsement offer must be made at the time (1) a new policy on a nonfortified
home is written, and (2) upon first renewal of an existing policy on a nonfortified home.
new text end

new text begin (c) For policies offered, issued, or renewed after January 1, 2026, an insurer must file
the insurer's endorsement form and accompanying rates for approval by the department.
new text end

new text begin (d) The commissioner may adopt rules as necessary to implement this section.
new text end

Sec. 4.

new text begin [65A.63] STRENGTHEN MINNESOTA HOMES PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be cited as the "Strengthen Minnesota
Homes Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Insurable property" has the meaning given in section 65A.60, paragraph (a).
new text end

new text begin (d) "Program" means the Strengthen Minnesota Homes program established under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Program established; purpose, permitted activities. new text end

new text begin The Strengthen Minnesota
Homes program is established within the Department of Commerce. The purpose of the
program is to provide grants to retrofit insurable property to resist loss due to common
perils, including but not limited to tornadoes or other catastrophic windstorm events.
new text end

new text begin Subd. 4. new text end

new text begin Strengthen Minnesota homes account; appropriation. new text end

new text begin (a) A strengthen
Minnesota homes account is created as a separate account in the special revenue fund of
the state treasury. The account consists of money provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund and remains in the account until expended. The commissioner
must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to pay for (1) grants issued
under the program, and (2) the reasonable costs incurred by the commissioner to administer
the program.
new text end

new text begin Subd. 5. new text end

new text begin Use of grants. new text end

new text begin (a) A grant under this section must be used to retrofit an insurable
property, as provided under section 65A.61, paragraph (b).
new text end

new text begin (b) Grant money provided under this section must not be used for maintenance or repairs,
but may be used in conjunction with repairs or reconstruction necessitated by damage from
wind or hail.
new text end

new text begin (c) A project funded by a grant under this section must be completed within three months
of the date the grant is approved. Failure to complete the project in a timely manner may
result in forfeiture of the grant.
new text end

new text begin Subd. 6. new text end

new text begin Applicant eligibility. new text end

new text begin (a) The commissioner must develop (1) administrative
procedures to implement this section, and (2) criteria used to determine whether an applicant
is eligible for a grant under this section.
new text end

new text begin (b) The criteria may include but are not limited to:
new text end

new text begin (1) proof that the applicant has an existing insurance policy that provides wind insurance
on the home; and
new text end

new text begin (2) the applicant's eligibility for and participation in other financial assistance programs
the commissioner administers, including but not limited to the weatherization assistance
program under section 216C.264 and the low-income energy assistance program, as defined
in section 256J.08, subdivision 52.
new text end

new text begin Subd. 7. new text end

new text begin Contractor eligibility; conflicts of interest. new text end

new text begin (a) To be eligible to work as a
contractor on a project funded by a grant under this section, the contractor must meet all of
the following program requirements and must maintain a current copy of all certificates,
licenses, and proof of insurance coverage with the program office. The eligible contractor
must:
new text end

new text begin (1) hold a valid residential building contractor and residential remodeler license issued
by the commissioner of labor and industry;
new text end

new text begin (2) not be subject to disciplinary action by the commissioner of labor and industry;
new text end

new text begin (3) hold any other valid state or jurisdictional business license or work permits required
by law;
new text end

new text begin (4) possess an in-force general liability policy with $1,000,000 in liability coverage;
new text end

new text begin (5) possess an in-force workers' compensation policy;
new text end

new text begin (6) possess a certificate of compliance from the commissioner of revenue;
new text end

new text begin (7) successfully complete Fortified Roof for High Wind and Hail and Hurricane training
provided by the IBHS or IBHS's successor and provide a certificate of successful completion
of the training. The training may be offered as separate courses;
new text end

new text begin (8) agree to the terms and successfully register as a vendor with the commissioner of
management and budget and receive direct deposit of payment for mitigation work performed
under the program;
new text end

new text begin (9) maintain Internet access and keep a valid email address on file with the program and
remain active in the commissioner of management and budget's vendor and supplier portal
while working on the program;
new text end

new text begin (10) maintain an active email address for the communication with the program;
new text end

new text begin (11) successfully complete the program training; and
new text end

new text begin (12) agree to follow program procedures and rules established under this section and by
the commissioner.
new text end

new text begin (b) An eligible contractor must not have a financial interest, other than payment on
behalf of the homeowner, in any project for which the eligible contractor performs work
toward a fortified designation under the program. An eligible contractor is prohibited from
acting as the evaluator for a fortified designation on any project funded by the program. An
eligible contractor must report to the commissioner regarding any potential conflict of
interest before work commences on any job funded by the program.
new text end

new text begin Subd. 8. new text end

new text begin Evaluator eligibility; conflicts of interest. new text end

new text begin (a) To be eligible to work on the
program as an evaluator, the evaluator must meet all program eligibility requirements and
must submit to the commissioner and maintain a copy of all current certificates and licenses.
The evaluator must:
new text end

new text begin (1) be in good standing with IBHS and maintain an active certification as a fortified
home evaluator for hurricane and high wind and hail or a successor certification;
new text end

new text begin (2) possess a Minnesota business license and be registered with the secretary of state;
and
new text end

new text begin (3) successfully complete the program training.
new text end

new text begin (b) Evaluators must not have a financial interest in any project that the evaluator inspects
for designation purposes for the program. An evaluator must not be an eligible contractor
or supplier of any material, product, or system installed in any home that the evaluator
inspects for designation purposes for the program. An evaluator must not be a sales agent
for any home being designated for the program. An evaluator must inform the commissioner
of any potential conflict of interest impacting the evaluator's participation in the program.
new text end

new text begin Subd. 9. new text end

new text begin Grant approval; allocation. new text end

new text begin (a) The commissioner must review all applications
for completeness and must perform appropriate audits to verify (1) the accuracy of the
information on the application, and (2) that the applicant meets all eligibility rules. All
verified applicants must be placed in the order the application was received. Grants must
be awarded on a first-come, first-served basis, subject to availability of money for the
program.
new text end

new text begin (b) When a grant is approved, an approval letter must be sent to the applicant.
new text end

new text begin (c) An eligible contractor is prohibited from beginning work until a grant is approved.
new text end

new text begin (d) In order to assure equitable distribution of grants in proportion to the income
demographics in counties where the program is made available, grant applications must be
accepted on a first-come, first-served basis. The commissioner may establish pilot projects
as needed to establish a sustainable program distribution system in any geographic area
within Minnesota.
new text end

new text begin Subd. 10. new text end

new text begin Grant award process; release of grant money. new text end

new text begin (a) After a grant application
is approved, the eligible contractor selected by the homeowner may begin the mitigation
work.
new text end

new text begin (b) Once the mitigation work is completed, the eligible contractor must submit a copy
of the signed contract to the commissioner, along with an invoice seeking payment and an
affidavit stating the fortified standards were met by the work.
new text end

new text begin (c) The evaluator must conduct all required evaluations, including a required interim
inspection during construction and the final inspection, and must confirm that the work was
completed according to the mitigation specifications.
new text end

new text begin (d) Grant money must be released on behalf of an approved applicant only after a fortified
designation certificate has been issued for the home. The program or another designated
entity must, on behalf of the homeowner, directly pay the eligible contractor that performed
the mitigation work. The program or the program's designated entity must pay the eligible
contractor the costs covered by the grant. The homeowner must pay the eligible contractor
for the remaining cost after receiving an IBHS fortified certificate.
new text end

new text begin (e) The program must confirm that the homeowner's insurer provides the appropriate
premium credit.
new text end

new text begin (f) The program must conduct random reinspections to detect any fraud and must submit
any irregularities to the attorney general.
new text end

new text begin Subd. 11. new text end

new text begin Limitations. new text end

new text begin (a) This section does not create an entitlement for property
owners or obligate the state of Minnesota to pay for residential property in Minnesota to be
inspected or retrofitted. The program under this section is subject to legislative appropriations,
the receipt of federal grants or money, or the receipt of other sources of grants or money.
The department may obtain grants or other money from the federal government or other
funding sources to support and enhance program activities.
new text end

new text begin (b) All mitigation under this section is contingent upon securing all required local permits
and applicable inspections to comply with local building codes and the Fortified for Existing
Homes Program. A mitigation project receiving a grant under this section is subject to
random reinspection at a later date.
new text end

new text begin Subd. 12. new text end

new text begin Rulemaking; other rules. new text end

new text begin The commissioner may adopt administrative rules
and eligibility requirements necessary to administer the program established under this
section and pursuant to instructions or requirements associated with grants or other money
received by the program.
new text end

ARTICLE 5

FINANCIAL INSTITUTIONS

Section 1.

Minnesota Statutes 2022, section 46.131, subdivision 11, is amended to read:

Subd. 11.

Financial institutions account; appropriation.

(a) The financial institutions
account is created as a separate account in the special revenue fund. Earnings, including
interest, dividends, and any other earnings arising from account assets, must be credited to
the account.

(b) The account consists of funds received from assessments under subdivision 7,
examination fees under subdivision 8, and funds received pursuant to subdivision 10 and
the following provisions: sections 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54,
subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; 48.61, subdivision 7, paragraph
(b); 49.36, subdivision 1; 52.203; deleted text begin 53B.09; 53B.11, subdivision 1; deleted text end new text begin 53B.38; 53B.41; 53B.43; new text end
53C.02; 56.02; 58.10; 58A.045, subdivision 2; 59A.03; 216C.437, subdivision 12; 332A.04;
and 332B.04.

(c) Funds in the account are annually appropriated to the commissioner of commerce
for activities under this section.

Sec. 2.

new text begin [53B.28] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Acting in concert. new text end

new text begin "Acting in concert" means persons knowingly acting together
with a common goal of jointly acquiring control of a licensee, whether or not pursuant to
an express agreement.
new text end

new text begin Subd. 3. new text end

new text begin Authorized delegate. new text end

new text begin "Authorized delegate" means a person a licensee
designates to engage in money transmission on behalf of the licensee.
new text end

new text begin Subd. 4. new text end

new text begin Average daily money transmission liability. new text end

new text begin "Average daily money
transmission liability" means the amount of the licensee's outstanding money transmission
obligations in Minnesota at the end of each day in a given period of time, added together,
and divided by the total number of days in the given period of time. For purposes of
calculating average daily money transmission liability under this chapter for any licensee
required to do so, the given period of time shall be the quarters ending March 31, June 30,
September 30, and December 31.
new text end

new text begin Subd. 5. new text end

new text begin Bank Secrecy Act. new text end

new text begin "Bank Secrecy Act" means the Bank Secrecy Act under
United States Code, title 31, section 5311, et seq., and the Bank Secrecy Act's implementing
regulations, as amended and recodified from time to time.
new text end

new text begin Subd. 6. new text end

new text begin Closed loop stored value. new text end

new text begin "Closed loop stored value" means stored value that
is redeemable by the issuer only for a good or service provided by the issuer, the issuer's
affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the
extent required by applicable law to be redeemable in cash for the good or service's cash
value.
new text end

new text begin Subd. 7. new text end

new text begin Control. new text end

new text begin "Control" means:
new text end

new text begin (1) the power to vote, directly or indirectly, at least 25 percent of the outstanding voting
shares or voting interests of a licensee or person in control of a licensee;
new text end

new text begin (2) the power to elect or appoint a majority of key individuals or executive officers,
managers, directors, trustees, or other persons exercising managerial authority of a person
in control of a licensee; or
new text end

new text begin (3) the power to exercise, directly or indirectly, a controlling influence over the
management or policies of a licensee or person in control of a licensee.
new text end

new text begin Subd. 8. new text end

new text begin Eligible rating. new text end

new text begin "Eligible rating" means a credit rating of any of the three highest
rating categories provided by an eligible rating service, whereby each category may include
rating category modifiers such as "plus" or "minus" or the equivalent for any other eligible
rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or
higher or the equivalent from any other eligible rating service. Short-term credit ratings are
deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent
from any other eligible rating service. In the event that ratings differ among eligible rating
services, the highest rating shall apply when determining whether a security bears an eligible
rating.
new text end

new text begin Subd. 9. new text end

new text begin Eligible rating service. new text end

new text begin "Eligible rating service" means any Nationally
Recognized Statistical Rating Organization (NRSRO), as defined by the United States
Securities and Exchange Commission and any other organization designated by the
commissioner by rule or order.
new text end

new text begin Subd. 10. new text end

new text begin Federally insured depository financial institution. new text end

new text begin "Federally insured
depository financial institution" means a bank, credit union, savings and loan association,
trust company, savings association, savings bank, industrial bank, or industrial loan company
organized under the laws of the United States or any state of the United States, when the
bank, credit union, savings and loan association, trust company, savings association, savings
bank, industrial bank, or industrial loan company has federally insured deposits.
new text end

new text begin Subd. 11. new text end

new text begin In Minnesota. new text end

new text begin "In Minnesota" means at a physical location within the state
of Minnesota for a transaction requested in person. For a transaction requested electronically
or by telephone, the provider of money transmission may determine if the person requesting
the transaction is in Minnesota by relying on other information provided by the person
regarding the location of the individual's residential address or a business entity's principal
place of business or other physical address location, and any records associated with the
person that the provider of money transmission may have that indicate the location, including
but not limited to an address associated with an account.
new text end

new text begin Subd. 12. new text end

new text begin Individual. new text end

new text begin "Individual" means a natural person.
new text end

new text begin Subd. 13. new text end

new text begin Key individual. new text end

new text begin "Key individual" means any individual ultimately responsible
for establishing or directing policies and procedures of the licensee, including but not limited
to as an executive officer, manager, director, or trustee.
new text end

new text begin Subd. 14. new text end

new text begin Licensee. new text end

new text begin "Licensee" means a person licensed under this chapter.
new text end

new text begin Subd. 15. new text end

new text begin Material litigation. new text end

new text begin "Material litigation" means litigation, that according to
United States generally accepted accounting principles, is significant to a person's financial
health and would be required to be disclosed in the person's annual audited financial
statements, report to shareholders, or similar records.
new text end

new text begin Subd. 16. new text end

new text begin Money. new text end

new text begin "Money" means a medium of exchange that is authorized or adopted
by the United States or a foreign government. Money includes a monetary unit of account
established by an intergovernmental organization or by agreement between two or more
governments.
new text end

new text begin Subd. 17. new text end

new text begin Monetary value. new text end

new text begin "Monetary value" means a medium of exchange, whether
or not redeemable in money.
new text end

new text begin Subd. 18. new text end

new text begin Money transmission. new text end

new text begin (a) "Money transmission" means:
new text end

new text begin (1) selling or issuing payment instruments to a person located in this state;
new text end

new text begin (2) selling or issuing stored value to a person located in this state; or
new text end

new text begin (3) receiving money for transmission from a person located in this state.
new text end

new text begin (b) Money includes payroll processing services. Money does not include the provision
solely of online or telecommunications services or network access.
new text end

new text begin Subd. 19. new text end

new text begin Money services business accredited state or MSB accredited state. new text end

new text begin "Money
services businesses accredited state" or "MSB accredited state" means a state agency that
is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators
Association for money transmission licensing and supervision.
new text end

new text begin Subd. 20. new text end

new text begin Multistate licensing process. new text end

new text begin "Multistate licensing process" means any
agreement entered into by and among state regulators relating to coordinated processing of
applications for money transmission licenses, applications for the acquisition of control of
a licensee, control determinations, or notice and information requirements for a change of
key individuals.
new text end

new text begin Subd. 21. new text end

new text begin NMLS. new text end

new text begin "NMLS" means the Nationwide Multistate Licensing System and
Registry developed by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators and owned and operated by the State
Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and
registration of persons in financial services industries.
new text end

new text begin Subd. 22. new text end

new text begin Outstanding money transmission obligations. new text end

new text begin (a) "Outstanding money
transmission obligations" must be established and extinguished in accordance with applicable
state law and means:
new text end

new text begin (1) any payment instrument or stored value issued or sold by the licensee to a person
located in the United States or reported as sold by an authorized delegate of the licensee to
a person that is located in the United States that has not yet been paid or refunded by or for
the licensee, or escheated in accordance with applicable abandoned property laws; or
new text end

new text begin (2) any money received for transmission by the licensee or an authorized delegate in the
United States from a person located in the United States that has not been received by the
payee or refunded to the sender, or escheated in accordance with applicable abandoned
property laws.
new text end

new text begin (b) For purposes of this subdivision, "in the United States" includes, to the extent
applicable, a person in any state, territory, or possession of the United States; the District
of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is
located in a foreign country.
new text end

new text begin Subd. 23. new text end

new text begin Passive investor. new text end

new text begin "Passive investor" means a person that:
new text end

new text begin (1) does not have the power to elect a majority of key individuals or executive officers,
managers, directors, trustees, or other persons exercising managerial authority of a person
in control of a licensee;
new text end

new text begin (2) is not employed by and does not have any managerial duties of the licensee or person
in control of a licensee;
new text end

new text begin (3) does not have the power to exercise, directly or indirectly, a controlling influence
over the management or policies of a licensee or person in control of a licensee; and
new text end

new text begin (4) attests to clauses (1), (2), and (3), in a form and in a medium prescribed by the
commissioner, or commits to the passivity characteristics under clauses (1), (2), and (3) in
a written document.
new text end

new text begin Subd. 24. new text end

new text begin Payment instrument. new text end

new text begin (a) "Payment instrument" means a written or electronic
check, draft, money order, traveler's check, or other written or electronic instrument for the
transmission or payment of money or monetary value, whether or not negotiable.
new text end

new text begin (b) Payment instrument does not include stored value or any instrument that is: (1)
redeemable by the issuer only for goods or services provided by the issuer, the issuer's
affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the
extent required by applicable law to be redeemable in cash for its cash value; or (2) not sold
to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
new text end

new text begin Subd. 25. new text end

new text begin Payroll processing services. new text end

new text begin "Payroll processing services" means receiving
money for transmission pursuant to a contract with a person to deliver wages or salaries,
make payment of payroll taxes to state and federal agencies, make payments relating to
employee benefit plans, or make distributions of other authorized deductions from wages
or salaries. The term payroll processing services does not include an employer performing
payroll processing services on the employer's own behalf or on behalf of the employer's
affiliate, or a professional employment organization subject to regulation under other
applicable state law.
new text end

new text begin Subd. 26. new text end

new text begin Person. new text end

new text begin "Person" means any individual, general partnership, limited partnership,
limited liability company, corporation, trust, association, joint stock corporation, or other
corporate entity identified by the commissioner.
new text end

new text begin Subd. 27. new text end

new text begin Receiving money for transmission or money received for
transmission. new text end

new text begin "Receiving money for transmission" or "money received for transmission"
means receiving money or monetary value in the United States for transmission within or
outside the United States by electronic or other means.
new text end

new text begin Subd. 28. new text end

new text begin Stored value. new text end

new text begin (a) "Stored value" means monetary value representing a claim
against the issuer evidenced by an electronic or digital record, and that is intended and
accepted for use as a means of redemption for money or monetary value, or payment for
goods or services. Stored value includes but is not limited to prepaid access, as defined
under Code of Federal Regulations, title 31, part 1010.100, as amended or recodified from
time to time.
new text end

new text begin (b) Notwithstanding this subdivision, stored value does not include: (1) a payment
instrument or closed loop stored value; or (2) stored value not sold to the public but issued
and distributed as part of a loyalty, rewards, or promotional program.
new text end

new text begin Subd. 29. new text end

new text begin Tangible net worth. new text end

new text begin "Tangible net worth" means the aggregate assets of a
licensee excluding all intangible assets, less liabilities, as determined in accordance with
United States generally accepted accounting principles.
new text end

Sec. 3.

new text begin [53B.29] EXEMPTIONS.
new text end

new text begin This chapter does not apply to:
new text end

new text begin (1) an operator of a payment system, to the extent the operator of a payment system
provides processing, clearing, or settlement services between or among persons exempted
by this section or licensees in connection with wire transfers, credit card transactions, debit
card transactions, stored-value transactions, automated clearing house transfers, or similar
funds transfers;
new text end

new text begin (2) a person appointed as an agent of a payee to collect and process a payment from a
payor to the payee for goods or services, other than money transmission itself, provided to
the payor by the payee, provided that:
new text end

new text begin (i) there exists a written agreement between the payee and the agent directing the agent
to collect and process payments from payors on the payee's behalf;
new text end

new text begin (ii) the payee holds the agent out to the public as accepting payments for goods or services
on the payee's behalf; and
new text end

new text begin (iii) payment for the goods and services is treated as received by the payee upon receipt
by the agent so that the payor's obligation is extinguished and there is no risk of loss to the
payor if the agent fails to remit the funds to the payee;
new text end

new text begin (3) a person that acts as an intermediary by processing payments between an entity that
has directly incurred an outstanding money transmission obligation to a sender, and the
sender's designated recipient, provided that the entity:
new text end

new text begin (i) is properly licensed or exempt from licensing requirements under this chapter;
new text end

new text begin (ii) provides a receipt, electronic record, or other written confirmation to the sender
identifying the entity as the provider of money transmission in the transaction; and
new text end

new text begin (iii) bears sole responsibility to satisfy the outstanding money transmission obligation
to the sender, including the obligation to make the sender whole in connection with any
failure to transmit the funds to the sender's designated recipient;
new text end

new text begin (4) the United States; a department, agency, or instrumentality of the United States; or
an agent of the United States;
new text end

new text begin (5) money transmission by the United States Postal Service or by an agent of the United
States Postal Service;
new text end

new text begin (6) a state; county; city; or any other governmental agency, governmental subdivision,
or instrumentality of a state; or the state's agent;
new text end

new text begin (7) a federally insured depository financial institution; bank holding company; office of
an international banking corporation; foreign bank that establishes a federal branch pursuant
to the International Bank Act, United States Code, title 12, section 3102, as amended or
recodified from time to time; corporation organized pursuant to the Bank Service Corporation
Act, United States Code, title 12, sections 1861 to 1867, as amended or recodified from
time to time; or corporation organized under the Edge Act, United States Code, title 12,
sections 611 to 633, as amended or recodified from time to time;
new text end

new text begin (8) electronic funds transfer of governmental benefits for a federal, state, county, or
governmental agency by a contractor on behalf of the United States or a department, agency,
or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or
instrumentality thereof;
new text end

new text begin (9) a board of trade designated as a contract market under the federal Commodity
Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from
time to time; or a person that in the ordinary course of business provides clearance and
settlement services for a board of trade to the extent of its operation as or for such a board;
new text end

new text begin (10) a registered futures commission merchant under the federal commodities laws, to
the extent of the registered futures commission merchant's operation as a merchant;
new text end

new text begin (11) a person registered as a securities broker-dealer under federal or state securities
laws, to the extent of the person's operation as a securities broker-dealer;
new text end

new text begin (12) an individual employed by a licensee, authorized delegate, or any person exempted
from the licensing requirements under this chapter when acting within the scope of
employment and under the supervision of the licensee, authorized delegate, or exempted
person as an employee and not as an independent contractor;
new text end

new text begin (13) a person expressly appointed as a third-party service provider to or agent of an
entity exempt under clause (7), solely to the extent that:
new text end

new text begin (i) the service provider or agent is engaging in money transmission on behalf of and
pursuant to a written agreement with the exempt entity that sets forth the specific functions
that the service provider or agent is to perform; and
new text end

new text begin (ii) the exempt entity assumes all risk of loss and all legal responsibility for satisfying
the outstanding money transmission obligations owed to purchasers and holders of the
outstanding money transmission obligations upon receipt of the purchaser's or holder's
money or monetary value by the service provider or agent; or
new text end

new text begin (14) a person exempt by regulation or order if the commissioner finds that (i) the
exemption is in the public interest, and (ii) the regulation of the person is not necessary for
the purposes of this chapter.
new text end

Sec. 4.

new text begin [53B.30] AUTHORITY TO REQUIRE DEMONSTRATION OF
EXEMPTION.
new text end

new text begin The commissioner may require any person that claims to be exempt from licensing under
section 53B.29 to provide to the commissioner information and documentation that
demonstrates the person qualifies for any claimed exemption.
new text end

Sec. 5.

new text begin [53B.31] IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin General authority. new text end

new text begin In order to carry out the purposes of this chapter, the
commissioner may, subject to section 53B.32, paragraphs (a) and (b):
new text end

new text begin (1) enter into agreements or relationships with other government officials or federal and
state regulatory agencies and regulatory associations in order to (i) improve efficiencies
and reduce regulatory burden by standardizing methods or procedures, and (ii) share
resources, records, or related information obtained under this chapter;
new text end

new text begin (2) use, hire, contract, or employ analytical systems, methods, or software to examine
or investigate any person subject to this chapter;
new text end

new text begin (3) accept, from other state or federal government agencies or officials, licensing,
examination, or investigation reports made by such other state or federal government agencies
or officials; and
new text end

new text begin (4) accept audit reports made by an independent certified public accountant or other
qualified third-party auditor for an applicant or licensee and incorporate the audit report in
any report of examination or investigation.
new text end

new text begin Subd. 2. new text end

new text begin Administrative authority. new text end

new text begin The commissioner is granted broad administrative
authority to: (1) administer, interpret, and enforce this chapter; (2) adopt regulations to
implement this chapter; and (3) recover the costs incurred to administer and enforce this
chapter by imposing and collecting proportionate and equitable fees and costs associated
with applications, examinations, investigations, and other actions required to achieve the
purpose of this chapter.
new text end

Sec. 6.

new text begin [53B.32] CONFIDENTIALITY.
new text end

new text begin (a) All information or reports obtained by the commissioner contained in or related to
an examination that is prepared by, on behalf of, or for the use of the commissioner are
confidential and are not subject to disclosure under section 46.07.
new text end

new text begin (b) The commissioner may disclose information not otherwise subject to disclosure
under paragraph (a) to representatives of state or federal agencies pursuant to section 53B.31,
subdivision 1.
new text end

new text begin (c) This section does not prohibit the commissioner from disclosing to the public a list
of all licensees or the aggregated financial or transactional data concerning those licensees.
new text end

Sec. 7.

new text begin [53B.33] SUPERVISION.
new text end

new text begin (a) The commissioner may conduct an examination or investigation of a licensee or
authorized delegate or otherwise take independent action authorized by this chapter, or by
a rule adopted or order issued under this chapter, as reasonably necessary or appropriate to
administer and enforce this chapter, rules implementing this chapter, and other applicable
law, including the Bank Secrecy Act and the USA PATRIOT Act, Public Law 107-56. The
commissioner may:
new text end

new text begin (1) conduct an examination either on site or off site as the commissioner may reasonably
require;
new text end

new text begin (2) conduct an examination in conjunction with an examination conducted by
representatives of other state agencies or agencies of another state or of the federal
government;
new text end

new text begin (3) accept the examination report of another state agency or an agency of another state
or of the federal government, or a report prepared by an independent accounting firm, which
on being accepted is considered for all purposes as an official report of the commissioner;
and
new text end

new text begin (4) summon and examine under oath a key individual or employee of a licensee or
authorized delegate and require the person to produce records regarding any matter related
to the condition and business of the licensee or authorized delegate.
new text end

new text begin (b) A licensee or authorized delegate must provide, and the commissioner has full and
complete access to, all records the commissioner may reasonably require to conduct a
complete examination. The records must be provided at the location and in the format
specified by the commissioner. The commissioner may use multistate record production
standards and examination procedures when the standards reasonably achieve the
requirements of this paragraph.
new text end

new text begin (c) Unless otherwise directed by the commissioner, a licensee must pay all costs
reasonably incurred in connection with an examination of the licensee or the licensee's
authorized delegates.
new text end

Sec. 8.

new text begin [53B.34] NETWORKED SUPERVISION.
new text end

new text begin (a) To efficiently and effectively administer and enforce this chapter and to minimize
regulatory burden, the commissioner is authorized to participate in multistate supervisory
processes established between states and coordinated through the Conference of State Bank
Supervisors, the Money Transmitter Regulators Association, and the affiliates and successors
of the Conference of State Bank Supervisors and the Money Transmitter Regulators
Association for all licensees that hold licenses in this state and other states. As a participant
in multistate supervision, the commissioner may:
new text end

new text begin (1) cooperate, coordinate, and share information with other state and federal regulators
in accordance with section 53B.32;
new text end

new text begin (2) enter into written cooperation, coordination, or information-sharing contracts or
agreements with organizations the membership of which is made up of state or federal
governmental agencies; and
new text end

new text begin (3) cooperate, coordinate, and share information with organizations the membership of
which is made up of state or federal governmental agencies, provided that the organizations
agree in writing to maintain the confidentiality and security of the shared information in
accordance with section 53B.32.
new text end

new text begin (b) The commissioner is prohibited from waiving, and nothing in this section constitutes
a waiver of, the commissioner's authority to conduct an examination or investigation or
otherwise take independent action authorized by this chapter, or a rule adopted or order
issued under this chapter, to enforce compliance with applicable state or federal law.
new text end

new text begin (c) A joint examination or investigation, or acceptance of an examination or investigation
report, does not waive an examination fee provided for in this chapter.
new text end

Sec. 9.

new text begin [53B.35] RELATIONSHIP TO FEDERAL LAW.
new text end

new text begin (a) In the event state money transmission jurisdiction is conditioned on a federal law,
any inconsistencies between a provision of this chapter and the federal law governing money
transmission is governed by the applicable federal law to the extent of the inconsistency.
new text end

new text begin (b) In the event of any inconsistencies between this chapter and a federal law that governs
pursuant to paragraph (a), the commissioner may provide interpretive guidance that:
new text end

new text begin (1) identifies the inconsistency; and
new text end

new text begin (2) identifies the appropriate means of compliance with federal law.
new text end

Sec. 10.

new text begin [53B.36] LICENSE REQUIRED.
new text end

new text begin (a) A person is prohibited from engaging in the business of money transmission, or
advertising, soliciting, or representing that the person provides money transmission, unless
the person is licensed under this chapter.
new text end

new text begin (b) Paragraph (a) does not apply to:
new text end

new text begin (1) a person that is an authorized delegate of a person licensed under this chapter acting
within the scope of authority conferred by a written contract with the licensee; or
new text end

new text begin (2) a person that is exempt under section 53B.29 and does not engage in money
transmission outside the scope of the exemption.
new text end

new text begin (c) A license issued under section 53B.40 is not transferable or assignable.
new text end

Sec. 11.

new text begin [53B.37] CONSISTENT STATE LICENSING.
new text end

new text begin (a) To establish consistent licensing between Minnesota and other states, the
commissioner is authorized to:
new text end

new text begin (1) implement all licensing provisions of this chapter in a manner that is consistent with
(i) other states that have adopted substantially similar licensing requirements, or (ii) multistate
licensing processes; and
new text end

new text begin (2) participate in nationwide protocols for licensing cooperation and coordination among
state regulators provided that the protocols are consistent with this chapter.
new text end

new text begin (b) In order to fulfill the purposes of this chapter, the commissioner is authorized to
establish relationships or contracts with NMLS or other entities designated by NMLS to
enable the commissioner to:
new text end

new text begin (1) collect and maintain records;
new text end

new text begin (2) coordinate multistate licensing processes and supervision processes;
new text end

new text begin (3) process fees; and
new text end

new text begin (4) facilitate communication between the commissioner and licensees or other persons
subject to this chapter.
new text end

new text begin (c) The commissioner is authorized to use NMLS for all aspects of licensing in accordance
with this chapter, including but not limited to license applications, applications for
acquisitions of control, surety bonds, reporting, criminal history background checks, credit
checks, fee processing, and examinations.
new text end

new text begin (d) The commissioner is authorized to use NMLS forms, processes, and functions in
accordance with this chapter. If NMLS does not provide functionality, forms, or processes
for a requirement under this chapter, the commissioner is authorized to implement the
requirements in a manner that facilitates uniformity with respect to licensing, supervision,
reporting, and regulation of licensees which are licensed in multiple jurisdictions.
new text end

new text begin (e) For the purpose of participating in the NMLS registry, the commissioner is authorized
to, by rule or order: (1) waive or modify, in whole or in part, any or all of the requirements;
and (2) establish new requirements as reasonably necessary to participate in the NMLS
registry.
new text end

Sec. 12.

new text begin [53B.38] APPLICATION FOR LICENSE.
new text end

new text begin (a) An applicant for a license must apply in a form and in a medium as prescribed by
the commissioner. The application must state or contain, as applicable:
new text end

new text begin (1) the legal name and residential and business addresses of the applicant and any
fictitious or trade name used by the applicant in conducting its business;
new text end

new text begin (2) a list of any criminal convictions of the applicant and any material litigation in which
the applicant has been involved in the ten-year period next preceding the submission of the
application;
new text end

new text begin (3) a description of any money transmission previously provided by the applicant and
the money transmission that the applicant seeks to provide in this state;
new text end

new text begin (4) a list of the applicant's proposed authorized delegates and the locations in this state
where the applicant and its authorized delegates propose to engage in money transmission;
new text end

new text begin (5) a list of other states in which the applicant is licensed to engage in money transmission
and any license revocations, suspensions, or other disciplinary action taken against the
applicant in another state;
new text end

new text begin (6) information concerning any bankruptcy or receivership proceedings affecting the
licensee or a person in control of a licensee;
new text end

new text begin (7) a sample form of contract for authorized delegates, if applicable;
new text end

new text begin (8) a sample form of payment instrument or stored value, as applicable;
new text end

new text begin (9) the name and address of any federally insured depository financial institution through
which the applicant plans to conduct money transmission; and
new text end

new text begin (10) any other information the commissioner or NMLS reasonably requires with respect
to the applicant.
new text end

new text begin (b) If an applicant is a corporation, limited liability company, partnership, or other legal
entity, the applicant must also provide:
new text end

new text begin (1) the date of the applicant's incorporation or formation and state or country of
incorporation or formation;
new text end

new text begin (2) if applicable, a certificate of good standing from the state or country in which the
applicant is incorporated or formed;
new text end

new text begin (3) a brief description of the structure or organization of the applicant, including any
parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly
traded;
new text end

new text begin (4) the legal name, any fictitious or trade name, all business and residential addresses,
and the employment, as applicable, in the ten-year period next preceding the submission of
the application of each key individual and person in control of the applicant;
new text end

new text begin (5) a list of any criminal convictions and material litigation in which a person in control
of the applicant that is not an individual has been involved in the ten-year period preceding
the submission of the application;
new text end

new text begin (6) a copy of audited financial statements of the applicant for the most recent fiscal year
and for the two-year period next preceding the submission of the application or, if the
commissioner deems acceptable, certified unaudited financial statements for the most recent
fiscal year or other period acceptable to the commissioner;
new text end

new text begin (7) a certified copy of unaudited financial statements of the applicant for the most recent
fiscal quarter;
new text end

new text begin (8) if the applicant is a publicly traded corporation, a copy of the most recent report filed
with the United States Securities and Exchange Commission under section 13 of the federal
Securities Exchange Act of 1934, United States Code, title 15, section 78m, as amended or
recodified from time to time;
new text end

new text begin (9) if the applicant is a wholly owned subsidiary of:
new text end

new text begin (i) a corporation publicly traded in the United States, a copy of audited financial
statements for the parent corporation for the most recent fiscal year or a copy of the parent
corporation's most recent report filed under section 13 of the Securities Exchange Act of
1934, United States Code, title 15, section 78m, as amended or recodified from time to time;
or
new text end

new text begin (ii) a corporation publicly traded outside the United States, a copy of similar
documentation filed with the regulator of the parent corporation's domicile outside the
United States;
new text end

new text begin (10) the name and address of the applicant's registered agent in this state; and
new text end

new text begin (11) any other information the commissioner reasonably requires with respect to the
applicant.
new text end

new text begin (c) A nonrefundable application fee of $4,000 must accompany an application for a
license under this section.
new text end

new text begin (d) The commissioner may: (1) waive one or more requirements of paragraphs (a) and
(b); or (2) permit an applicant to submit other information in lieu of the required information.
new text end

Sec. 13.

new text begin [53B.39] INFORMATION REQUIREMENTS; CERTAIN INDIVIDUALS.
new text end

new text begin Subdivision 1. new text end

new text begin Individuals with or seeking control. new text end

new text begin Any individual in control of a
licensee or applicant, any individual that seeks to acquire control of a licensee, and each
key individual must furnish to the commissioner through NMLS:
new text end

new text begin (1) the individual's fingerprints for submission to the Federal Bureau of Investigation
and the commissioner for a national criminal history background check, unless the person
currently resides outside of the United States and has resided outside of the United States
for the last ten years; and
new text end

new text begin (2) personal history and business experience in a form and in a medium prescribed by
the commissioner, to obtain:
new text end

new text begin (i) an independent credit report from a consumer reporting agency;
new text end

new text begin (ii) information related to any criminal convictions or pending charges; and
new text end

new text begin (iii) information related to any regulatory or administrative action and any civil litigation
involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach
of fiduciary duty, or breach of contract.
new text end

new text begin Subd. 2. new text end

new text begin Individuals having resided outside the United States. new text end

new text begin (a) If an individual
has resided outside of the United States at any time in the last ten years, the individual must
also provide an investigative background report prepared by an independent search firm
that meets the requirements of this subdivision.
new text end

new text begin (b) At a minimum, the search firm must:
new text end

new text begin (1) demonstrate that the search firm has sufficient knowledge, resources, and employs
accepted and reasonable methodologies to conduct the research of the background report;
and
new text end

new text begin (2) not be affiliated with or have an interest with the individual the search firm is
researching.
new text end

new text begin (c) At a minimum, the investigative background report must be written in English and
must contain:
new text end

new text begin (1) if available in the individual's current jurisdiction of residency, a comprehensive
credit report, or any equivalent information obtained or generated by the independent search
firm to accomplish a credit report, including a search of the court data in the countries,
provinces, states, cities, towns, and contiguous areas where the individual resided and
worked;
new text end

new text begin (2) criminal records information for the past ten years, including but not limited to
felonies, misdemeanors, or similar convictions for violations of law in the countries,
provinces, states, cities, towns, and contiguous areas where the individual resided and
worked;
new text end

new text begin (3) employment history;
new text end

new text begin (4) media history, including an electronic search of national and local publications, wire
services, and business applications; and
new text end

new text begin (5) financial services-related regulatory history, including but not limited to money
transmission, securities, banking, consumer finance, insurance, and mortgage-related
industries.
new text end

Sec. 14.

new text begin [53B.40] LICENSE ISSUANCE.
new text end

new text begin (a) When an application for an original license under this chapter includes all of the
items and addresses all of the matters that are required, the application is complete and the
commissioner must promptly notify the applicant in a record of the date on which the
application is determined to be complete.
new text end

new text begin (b) The commissioner's determination that an application is complete and accepted for
processing means only that the application, on the application's face, appears to include all
of the items, including the criminal background check response from the Federal Bureau
of Investigation, and address all of the matters that are required. The commissioner's
determination that an application is complete is not an assessment of the substance of the
application or of the sufficiency of the information provided.
new text end

new text begin (c) When an application is filed and considered complete under this section, the
commissioner must investigate the applicant's financial condition and responsibility, financial
and business experience, character, and general fitness. The commissioner may conduct an
investigation of the applicant, the reasonable cost of which the applicant must pay. The
commissioner must issue a license to an applicant under this section if the commissioner
finds:
new text end

new text begin (1) the applicant has complied with sections 53B.38 and 53B.39; and
new text end

new text begin (2) the financial condition and responsibility; financial and business experience,
competence, character, and general fitness of the applicant; and the competence, experience,
character, and general fitness of the key individuals and persons in control of the applicant
indicate that it is in the interest of the public to permit the applicant to engage in money
transmission.
new text end

new text begin (d) If an applicant avails itself of or is otherwise subject to a multistate licensing process:
new text end

new text begin (1) the commissioner is authorized to accept the investigation results of a lead
investigative state for the purposes of paragraph (c); or
new text end

new text begin (2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate
the applicant pursuant to paragraph (c) and the time frames established by agreement through
the multistate licensing process, provided that the time frame complies with the application
review period provided under paragraph (e).
new text end

new text begin (e) The commissioner must approve or deny the application within 120 days after the
date the application is deemed complete. If the application is not approved or denied within
120 days after the completion date, the application is approved and the license takes effect
on the first business day after the 120-day period expires.
new text end

new text begin (f) The commissioner must issue a formal written notice of the denial of a license
application within 30 days of the date the decision to deny the application is made. The
commissioner must set forth in the notice of denial the specific reasons for the denial of the
application. An applicant whose application is denied by the commissioner under this
paragraph may appeal within 30 days of the date the written notice of the denial is received.
The commissioner must set a hearing date that is not later than 60 days after service of the
response, unless a later date is set with the consent of the denied applicant.
new text end

new text begin (g) The initial license term begins on the day the application is approved. The license
expires on December 31 of the year in which the license term began, unless the initial license
date is between November 1 and December 31, in which case the initial license term runs
through December 31 of the following year. If a license is approved between November 1
and December 31, the applicant is subject to the renewal fee under section 53B.31, paragraph
(a).
new text end

Sec. 15.

new text begin [53B.41] LICENSE RENEWAL.
new text end

new text begin (a) A license under this chapter must be renewed annually. An annual renewal fee of
$2,500 must be paid no more than 60 days before the license expires. The renewal term is
a period of one year and begins on January 1 each year after the initial license term. The
renewal term expires on December 31 of the year the renewal term begins.
new text end

new text begin (b) A licensee must submit a renewal report with the renewal fee, in a form and in a
medium prescribed by the commissioner. The renewal report must state or contain a
description of each material change in information submitted by the licensee in the licensee's
original license application that has not been previously reported to the commissioner.
new text end

new text begin (c) The commissioner may grant an extension of the renewal date for good cause.
new text end

new text begin (d) The commissioner is authorized to use the NMLS to process license renewals,
provided that the NMLS functionality is consistent with this section.
new text end

Sec. 16.

new text begin [53B.42] MAINTENANCE OF LICENSE.
new text end

new text begin (a) If a licensee does not continue to meet the qualifications or satisfy the requirements
that apply to an applicant for a new money transmission license, the commissioner may
suspend or revoke the licensee's license in accordance with the procedures established by
this chapter or other applicable state law for license suspension or revocation.
new text end

new text begin (b) An applicant for a money transmission license must demonstrate that the applicant
meets or will meet, and a money transmission licensee must at all times meet, the
requirements in sections 53B.59 to 53B.61.
new text end

Sec. 17.

new text begin [53B.43] ACQUISITION OF CONTROL.
new text end

new text begin (a) Any person, or group of persons acting in concert, seeking to acquire control of a
licensee must obtain the commissioner's written approval before acquiring control. An
individual is not deemed to acquire control of a licensee and is not subject to these acquisition
of control provisions when that individual becomes a key individual in the ordinary course
of business.
new text end

new text begin (b) For the purpose of this section, a person is presumed to exercise a controlling influence
when the person holds the power to vote, directly or indirectly, at least ten percent of the
outstanding voting shares or voting interests of a licensee or person in control of a licensee.
A person presumed to exercise a controlling influence as defined by this subdivision can
rebut the presumption of control if the person is a passive investor.
new text end

new text begin (c) For purposes of determining the percentage of a person controlled by any other
person, the person's interest shall be aggregated with the interest of any other immediate
family member, including the person's spouse, parents, children, siblings, mothers- and
fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other person
who shares the person's home.
new text end

new text begin (d) A person, or group of persons acting in concert, seeking to acquire control of a
licensee must, in cooperation with the licensee:
new text end

new text begin (1) submit an application in a form and in a medium prescribed by the commissioner;
and
new text end

new text begin (2) submit a nonrefundable fee of $4,000 with the request for approval.
new text end

new text begin (e) Upon request, the commissioner may permit a licensee or the person, or group of
persons acting in concert, to submit some or all information required by the commissioner
pursuant to paragraph (d), clause (1), without using NMLS.
new text end

new text begin (f) The application required by paragraph (d), clause (1), must include information
required by section 53B.39 for any new key individuals that have not previously completed
the requirements of section 53B.39 for a licensee.
new text end

new text begin (g) When an application for acquisition of control under this section appears to include
all of the items and address all of the matters that are required, the application is considered
complete and the commissioner must promptly notify the applicant in a record of the date
on which the application was determined to be complete.
new text end

new text begin (h) The commissioner must approve or deny the application within 60 days after the
completion date. If the application is not approved or denied within 60 days after the
completion date, the application is approved and the person, or group of persons acting in
concert, are not prohibited from acquiring control. The commissioner may extend the
application period for good cause.
new text end

new text begin (i) The commissioner's determination that an application is complete and is accepted for
processing means only that the application, on the application's face, appears to include all
of the items and address all of the matters that are required. The commissioner's determination
that an application is complete is not an assessment of the application's substance or of the
sufficiency of the information provided.
new text end

new text begin (j) When an application is filed and considered complete under paragraph (g), the
commissioner must investigate the financial condition and responsibility; the financial and
business experience; character; and the general fitness of the person, or group of persons
acting in concert, seeking to acquire control. The commissioner must approve an acquisition
of control under this section if the commissioner finds:
new text end

new text begin (1) the requirements of paragraphs (d) and (f) have been met, as applicable; and
new text end

new text begin (2) the financial condition and responsibility, financial and business experience,
competence, character, and general fitness of the person, or group of persons acting in
concert, seeking to acquire control; and the competence, experience, character, and general
fitness of the key individuals and persons that control the licensee after the acquisition of
control indicate that it is in the interest of the public to permit the person, or group of persons
acting in concert, to control the licensee.
new text end

new text begin (k) If an applicant avails itself of or is otherwise subject to a multistate licensing process:
new text end

new text begin (1) the commissioner is authorized to accept the investigation results of a lead
investigative state for the purposes of paragraph (j); or
new text end

new text begin (2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate
the applicant under paragraph (j) and consistent with the time frames established by
agreement through the multistate licensing process.
new text end

new text begin (l) The commissioner must issue a formal written notice of the denial of an application
to acquire control. The commissioner must set forth in the notice of denial the specific
reasons the application was denied. An applicant whose application is denied by the
commissioner under this paragraph may appeal the denial within 30 days of the date the
written notice of the denial is received. Chapter 14 applies to appeals under this paragraph.
new text end

new text begin (m) Paragraphs (a) and (d) do not apply to:
new text end

new text begin (1) a person that acts as a proxy for the sole purpose of voting at a designated meeting
of the shareholders or holders of voting shares or voting interests of a licensee or a person
in control of a licensee;
new text end

new text begin (2) a person that acquires control of a licensee by devise or descent;
new text end

new text begin (3) a person that acquires control of a licensee as a personal representative, custodian,
guardian, conservator, or trustee, or as an officer appointed by a court of competent
jurisdiction or by operation of law;
new text end

new text begin (4) a person that is exempt under section 53B.29, clause (7);
new text end

new text begin (5) a person that the commissioner determines is not subject to paragraph (a), based on
the public interest;
new text end

new text begin (6) a public offering of securities of a licensee or a person in control of a licensee; or
new text end

new text begin (7) an internal reorganization of a person controlling the licensee, where the ultimate
person controlling the licensee remains the same.
new text end

new text begin (n) A person identified in paragraph (m), clause (2), (3), (4), or (6), that is cooperating
with the licensee must notify the commissioner within 15 days of the date the acquisition
of control occurs.
new text end

new text begin (o) Paragraphs (a) and (d) do not apply to a person that has complied with and received
approval to engage in money transmission under this chapter, or that was identified as a
person in control in a prior application filed with and approved by the commissioner or by
another state pursuant to a multistate licensing process, provided that:
new text end

new text begin (1) the person has not had a license revoked or suspended or controlled a licensee that
has had a license revoked or suspended while the person was in control of the licensee in
the previous five years;
new text end

new text begin (2) if the person is a licensee, the person is well managed and has received at least a
satisfactory rating for compliance at its most recent examination by an MSB-accredited
state if a rating was given;
new text end

new text begin (3) the licensee to be acquired is projected to meet the requirements of sections 53B.59
to 53B.61 after the acquisition of control is completed, and if the person acquiring control
is a licensee, that licensee is also projected to meet the requirements of sections 53B.59 to
53B.61 after the acquisition of control is completed;
new text end

new text begin (4) the licensee to be acquired does not implement any material changes to the acquired
licensee's business plan as a result of the acquisition of control, and if the person acquiring
control is a licensee, the acquiring licensee does not implement any material changes to the
acquiring licensee's business plan as a result of the acquisition of control; and
new text end

new text begin (5) the person provides notice of the acquisition in cooperation with the licensee and
attests to clauses (1), (2), (3), and (4) in a form and in a medium prescribed by the
commissioner.
new text end

new text begin (p) If the notice under paragraph (o), clause (5), is not disapproved within 30 days after
the date on which the notice was determined to be complete, the notice is deemed approved.
new text end

new text begin (q) Before filing an application for approval to acquire control of a licensee, a person
may request in writing a determination from the commissioner as to whether the person
would be considered a person in control of a licensee upon consummation of a proposed
transaction. If the commissioner determines that the person would not be a person in control
of a licensee, the proposed person and transaction is not subject to paragraphs (a) and (d).
new text end

new text begin (r) If a multistate licensing process includes a determination pursuant to paragraph (q)
and an applicant avails itself or is otherwise subject to the multistate licensing process:
new text end

new text begin (1) the commissioner is authorized to accept the control determination of a lead
investigative state with sufficient staffing, expertise, and minimum standards for the purposes
of paragraph (q); or
new text end

new text begin (2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate
the applicant under paragraph (q) and consistent with the time frames established by
agreement through the multistate licensing process.
new text end

Sec. 18.

new text begin [53B.44] CHANGE OF KEY INDIVIDUALS; NOTICE AND
INFORMATION REQUIREMENTS.
new text end

new text begin (a) A licensee that adds or replaces any key individual must:
new text end

new text begin (1) provide notice, in a manner prescribed by the commissioner, within 15 days after
the effective date of the key individual's appointment; and
new text end

new text begin (2) provide the information required under section 53B.39 within 45 days of the effective
date of the key individual's appointment.
new text end

new text begin (b) Within 90 days of the date on which the notice provided under section 53B.44,
paragraph (a), was determined to be complete, the commissioner may issue a notice of
disapproval of a key individual if the commissioner finds that the competence, business
experience, character, or integrity of the individual is not in the best interests of the public
or the customers of the licensee.
new text end

new text begin (c) A notice of disapproval must contain a statement of the basis for disapproval and
must be sent to the licensee and the disapproved individual. A licensee may appeal a notice
of disapproval pursuant to chapter 14 within 30 days of the date the notice of disapproval
is received.
new text end

new text begin (d) If the notice provided under paragraph (a) is not disapproved within 90 days after
the date on which the notice was determined to be complete, the key individual is deemed
approved.
new text end

new text begin (e) If a multistate licensing process includes a key individual notice review and
disapproval process under this section and the licensee avails itself of or is otherwise subject
to the multistate licensing process:
new text end

new text begin (1) the commissioner is authorized to accept the determination of another state if the
investigating state has sufficient staffing, expertise, and minimum standards for the purposes
of this section; or
new text end

new text begin (2) if Minnesota is a lead investigative state, the commissioner is authorized to investigate
the applicant under paragraph (b) and the time frames established by agreement through
the multistate licensing process.
new text end

Sec. 19.

new text begin [53B.45] REPORT OF CONDITION.
new text end

new text begin (a) Each licensee must submit a report of condition within 45 days of the end of the
calendar quarter, or within any extended time the commissioner prescribes.
new text end

new text begin (b) The report of condition must include:
new text end

new text begin (1) financial information at the licensee level;
new text end

new text begin (2) nationwide and state-specific money transmission transaction information in every
jurisdiction in the United States where the licensee is licensed to engage in money
transmission;
new text end

new text begin (3) a permissible investments report;
new text end

new text begin (4) transaction destination country reporting for money received for transmission, if
applicable; and
new text end

new text begin (5) any other information the commissioner reasonably requires with respect to the
licensee.
new text end

new text begin (c) The commissioner is authorized to use NMLS to submit the report required under
paragraph (a).
new text end

new text begin (d) The information required by paragraph (b), clause (4), must only be included in a
report of condition submitted within 45 days of the end of the fourth calendar quarter.
new text end

Sec. 20.

new text begin [53B.46] AUDITED FINANCIAL STATEMENTS.
new text end

new text begin (a) Each licensee must, within 90 days after the end of each fiscal year, or within any
extended time the commissioner prescribes, file with the commissioner:
new text end

new text begin (1) an audited financial statement of the licensee for the fiscal year prepared in accordance
with United States generally accepted accounting principles; and
new text end

new text begin (2) any other information the commissioner may reasonably require.
new text end

new text begin (b) The audited financial statements must be prepared by an independent certified public
accountant or independent public accountant who is satisfactory to the commissioner.
new text end

new text begin (c) The audited financial statements must include or be accompanied by a certificate of
opinion prepared by the independent certified public accountant or independent public
accountant that is satisfactory in form and content to the commissioner. If the certificate or
opinion is qualified, the commissioner may order the licensee to take any action the
commissioner finds necessary to enable the independent or certified public accountant or
independent public accountant to remove the qualification.
new text end

Sec. 21.

new text begin [53B.47] AUTHORIZED DELEGATE REPORTING.
new text end

new text begin (a) Each licensee must submit a report of authorized delegates within 45 days of the end
of the calendar quarter. The commissioner is authorized to use NMLS to submit the report
required by this paragraph, provided that the functionality is consistent with the requirements
of this section.
new text end

new text begin (b) The authorized delegate report must include, at a minimum, each authorized delegate's:
new text end

new text begin (1) company legal name;
new text end

new text begin (2) taxpayer employer identification number;
new text end

new text begin (3) principal provider identifier;
new text end

new text begin (4) physical address;
new text end

new text begin (5) mailing address;
new text end

new text begin (6) any business conducted in other states;
new text end

new text begin (7) any fictitious or trade name;
new text end

new text begin (8) contact person name, telephone number, and email;
new text end

new text begin (9) start date as the licensee's authorized delegate;
new text end

new text begin (10) end date acting as the licensee's authorized delegate, if applicable;
new text end

new text begin (11) court orders under section 53B.53; and
new text end

new text begin (12) any other information the commissioner reasonably requires with respect to the
authorized delegate.
new text end

Sec. 22.

new text begin [53B.48] REPORTS OF CERTAIN EVENTS.
new text end

new text begin (a) A licensee must file a report with the commissioner within ten business days after
the licensee has reason to know any of the following events has occurred:
new text end

new text begin (1) a petition by or against the licensee under the United States Bankruptcy Code, United
States Code, title 11, sections 101 to 110, as amended or recodified from time to time, for
bankruptcy or reorganization has been filed;
new text end

new text begin (2) a petition by or against the licensee for receivership, the commencement of any other
judicial or administrative proceeding for the licensee's dissolution or reorganization, or the
making of a general assignment for the benefit of the licensee's creditors has been filed; or
new text end

new text begin (3) a proceeding to revoke or suspend the licensee's license in a state or country in which
the licensee engages in business or is licensed has been commenced.
new text end

new text begin (b) A licensee must file a report with the commissioner within ten business days after
the licensee has reason to know any of the following events has occurred:
new text end

new text begin (1) the licensee or a key individual or person in control of the licensee is charged with
or convicted of a felony related to money transmission activities; or
new text end

new text begin (2) an authorized delegate is charged with or convicted of a felony related to money
transmission activities.
new text end

Sec. 23.

new text begin [53B.49] BANK SECRECY ACT REPORTS.
new text end

new text begin A licensee and an authorized delegate must file all reports required by federal currency
reporting, record keeping, and suspicious activity reporting requirements as set forth in the
Bank Secrecy Act and other federal and state laws pertaining to money laundering. A licensee
and authorized delegate that timely files with the appropriate federal agency a complete and
accurate report required under this section is deemed to comply with the requirements of
this section.
new text end

Sec. 24.

new text begin [53B.50] RECORDS.
new text end

new text begin (a) A licensee must maintain the following records, for purposes of determining the
licensee's compliance with this chapter, for at least three years:
new text end

new text begin (1) a record of each outstanding money transmission obligation sold;
new text end

new text begin (2) a general ledger posted at least monthly containing all asset, liability, capital, income,
and expense accounts;
new text end

new text begin (3) bank statements and bank reconciliation records;
new text end

new text begin (4) records of outstanding money transmission obligations;
new text end

new text begin (5) records of each outstanding money transmission obligation paid within the three-year
period;
new text end

new text begin (6) a list of the last known names and addresses of all of the licensee's authorized
delegates; and
new text end

new text begin (7) any other records the commissioner reasonably requires by administrative rule.
new text end

new text begin (b) The items specified in paragraph (a) may be maintained in any form of record.
new text end

new text begin (c) The records specified in paragraph (a) may be maintained outside of Minnesota if
the records are made accessible to the commissioner upon seven business-days' notice that
is sent in a record.
new text end

new text begin (d) All records maintained by the licensee as required under paragraphs (a) to (c) are
open to inspection by the commissioner under section 53B.33, paragraph (a).
new text end

Sec. 25.

new text begin [53B.51] RELATIONSHIP BETWEEN LICENSEE AND AUTHORIZED
DELEGATE.
new text end

new text begin (a) For purposes of this section, "remit" means to make direct payments of money to (1)
a licensee, or (2) a licensee's representative authorized to receive money or to deposit money
in a bank in an account specified by the licensee.
new text end

new text begin (b) Before a licensee is authorized to conduct business through an authorized delegate
or allows a person to act as the licensee's authorized delegate, the licensee must:
new text end

new text begin (1) adopt, and update as necessary, written policies and procedures reasonably designed
to ensure that the licensee's authorized delegates comply with applicable state and federal
law;
new text end

new text begin (2) enter into a written contract that complies with paragraph (d); and
new text end

new text begin (3) conduct a reasonable risk-based background investigation sufficient for the licensee
to determine whether the authorized delegate has complied and will likely comply with
applicable state and federal law.
new text end

new text begin (c) An authorized delegate must operate in full compliance with this chapter.
new text end

new text begin (d) The written contract required by paragraph (b) must be signed by the licensee and
the authorized delegate. The written contract must, at a minimum:
new text end

new text begin (1) appoint the person signing the contract as the licensee's authorized delegate with the
authority to conduct money transmission on behalf of the licensee;
new text end

new text begin (2) set forth the nature and scope of the relationship between the licensee and the
authorized delegate and the respective rights and responsibilities of the parties;
new text end

new text begin (3) require the authorized delegate to agree to fully comply with all applicable state and
federal laws, rules, and regulations pertaining to money transmission, including this chapter
and regulations implementing this chapter, relevant provisions of the Bank Secrecy Act and
the USA PATRIOT Act, Public Law 107-56;
new text end

new text begin (4) require the authorized delegate to remit and handle money and monetary value in
accordance with the terms of the contract between the licensee and the authorized delegate;
new text end

new text begin (5) impose a trust on money and monetary value net of fees received for money
transmission for the benefit of the licensee;
new text end

new text begin (6) require the authorized delegate to prepare and maintain records as required by this
chapter or administrative rules implementing this chapter, or as reasonably requested by
the commissioner;
new text end

new text begin (7) acknowledge that the authorized delegate consents to examination or investigation
by the commissioner;
new text end

new text begin (8) state that the licensee is subject to regulation by the commissioner and that as part
of that regulation the commissioner may (1) suspend or revoke an authorized delegate
designation, or (2) require the licensee to terminate an authorized delegate designation; and
new text end

new text begin (9) acknowledge receipt of the written policies and procedures required under paragraph
(b), clause (1).
new text end

new text begin (e) If the licensee's license is suspended, revoked, surrendered, or expired, within five
business days the licensee must provide documentation to the commissioner that the licensee
has notified all applicable authorized delegates of the licensee whose names are in a record
filed with the commissioner of the suspension, revocation, surrender, or expiration of a
license. Upon suspension, revocation, surrender, or expiration of a license, applicable
authorized delegates must immediately cease to provide money transmission as an authorized
delegate of the licensee.
new text end

new text begin (f) An authorized delegate of a licensee holds in trust for the benefit of the licensee all
money net of fees received from money transmission. If an authorized delegate commingles
any funds received from money transmission with other funds or property owned or
controlled by the authorized delegate, all commingled funds and other property are considered
held in trust in favor of the licensee in an amount equal to the amount of money net of fees
received from money transmission.
new text end

new text begin (g) An authorized delegate is prohibited from using a subdelegate to conduct money
transmission on behalf of a licensee.
new text end

Sec. 26.

new text begin [53B.52] UNAUTHORIZED ACTIVITIES.
new text end

new text begin A person is prohibited from engaging in the business of money transmission on behalf
of a person not licensed under this chapter or not exempt under sections 53B.29 and 53B.30.
A person that engages in the business of money transmission on behalf of a person that is
not licensed under this chapter or not exempt under sections 53B.29 and 53B.30 provides
money transmission to the same extent as if the person were a licensee, and is jointly and
severally liable with the unlicensed or nonexempt person.
new text end

Sec. 27.

new text begin [53B.53] PROHIBITED AUTHORIZED DELEGATES.
new text end

new text begin (a) The district court in an action brought by a licensee has jurisdiction to grant
appropriate equitable or legal relief, including without limitation prohibiting the authorized
delegate from directly or indirectly acting as an authorized delegate for any licensee in
Minnesota and the payment of restitution, damages, or other monetary relief, if the district
court finds that an authorized delegate failed to remit money in accordance with the written
contract required by section 53B.51, paragraph (b), or as otherwise directed by the licensee
or required by law.
new text end

new text begin (b) If the district court issues an order prohibiting a person from acting as an authorized
delegate for any licensee under paragraph (a), the licensee that brought the action must
report the order to the commissioner within 30 days of the date of the order and must report
the order through NMLS within 90 days of the date of the order.
new text end

Sec. 28.

new text begin [53B.54] TIMELY TRANSMISSION.
new text end

new text begin (a) Every licensee must forward all money received for transmission in accordance with
the terms of the agreement between the licensee and the sender, unless the licensee has a
reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud
or that a crime or violation of law, rule, or regulation has occurred, is occurring, or may
occur.
new text end

new text begin (b) If a licensee fails to forward money received for transmission as provided under this
section, the licensee must respond to inquiries by the sender with the reason for the failure,
unless providing a response would violate a state or federal law, rule, or regulation.
new text end

Sec. 29.

new text begin [53B.55] REFUNDS.
new text end

new text begin (a) This section does not apply to:
new text end

new text begin (1) money received for transmission that is subject to the federal remittance rule under
Code of Federal Regulations, title 12, part 1005, subpart B, as amended or recodified from
time to time; or
new text end

new text begin (2) money received for transmission pursuant to a written agreement between the licensee
and payee to process payments for goods or services provided by the payee.
new text end

new text begin (b) A licensee must refund to the sender within ten days of the date the licensee receives
the sender's written request for a refund of any and all money received for transmission,
unless:
new text end

new text begin (1) the money has been forwarded within ten days of the date on which the money was
received for transmission;
new text end

new text begin (2) instructions have been given committing an equivalent amount of money to the
person designated by the sender within ten days of the date on which the money was received
for transmission;
new text end

new text begin (3) the agreement between the licensee and the sender instructs the licensee to forward
the money at a time that is beyond ten days of the date on which the money was received
for transmission. If money has not been forwarded in accordance with the terms of the
agreement between the licensee and the sender, the licensee must issue a refund in accordance
with the other provisions of this section; or
new text end

new text begin (4) the refund is requested for a transaction that the licensee has not completed based
on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule,
or regulation has occurred, is occurring, or may occur.
new text end

new text begin (c) A refund request does not enable the licensee to identify:
new text end

new text begin (1) the sender's name and address or telephone number; or
new text end

new text begin (2) the particular transaction to be refunded in the event the sender has multiple
transactions outstanding.
new text end

Sec. 30.

new text begin [53B.56] RECEIPTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "receipt" means a paper receipt,
electronic record, or other written confirmation.
new text end

new text begin Subd. 2. new text end

new text begin Exemption. new text end

new text begin This section does not apply to:
new text end

new text begin (1) money received for transmission that is subject to the federal remittance rule under
Code of Federal Regulations, title 12, part 1005, subpart B, as amended or recodified from
time to time;
new text end

new text begin (2) money received for transmission that is not primarily for personal, family, or
household purposes;
new text end

new text begin (3) money received for transmission pursuant to a written agreement between the licensee
and payee to process payments for goods or services provided by the payee; or
new text end

new text begin (4) payroll processing services.
new text end

new text begin Subd. 3. new text end

new text begin Transaction types; receipts form. new text end

new text begin For a transaction conducted in person, the
receipt may be provided electronically if the sender requests or agrees to receive an electronic
receipt. For a transaction conducted electronically or by telephone, a receipt may be provided
electronically. All electronic receipts must be provided in a retainable form.
new text end

new text begin Subd. 4. new text end

new text begin Receipts required. new text end

new text begin (a) Every licensee or its authorized delegate shall provide
the sender a receipt for money received for transmission.
new text end

new text begin (b) The receipt must contain, as applicable:
new text end

new text begin (1) the name of the sender;
new text end

new text begin (2) the name of the designated recipient;
new text end

new text begin (3) the date of the transaction;
new text end

new text begin (4) the unique transaction or identification number;
new text end

new text begin (5) the name of the licensee, NMLS Unique ID, the licensee's business address, and the
licensee's customer service telephone number;
new text end

new text begin (6) the transaction amount, expressed in United States dollars;
new text end

new text begin (7) any fee the licensee charges the sender for the transaction; and
new text end

new text begin (8) any taxes the licensee collects from the sender for the transaction.
new text end

new text begin (c) The receipt required by this section must be in (1) English, and (2) the language
principally used by the licensee or authorized delegate to advertise, solicit, or negotiate,
either orally or in writing, for a transaction conducted in person, electronically, or by
telephone, if the language principally used is a language other than English.
new text end

Sec. 31.

new text begin [53B.57] NOTICE.
new text end

new text begin Every licensee or authorized delegate must include on a receipt or disclose on the
licensee's website or mobile application the name and telephone number of the department
and a statement that the licensee's customers can contact the department with questions or
complaints about the licensee's money transmission services.
new text end

Sec. 32.

new text begin [53B.58] PAYROLL PROCESSING SERVICES; DISCLOSURES.
new text end

new text begin (a) A licensee that provides payroll processing services must:
new text end

new text begin (1) issue reports to clients detailing client payroll obligations in advance of the payroll
funds being deducted from an account; and
new text end

new text begin (2) make available worker pay stubs or an equivalent statement to workers.
new text end

new text begin (b) Paragraph (a) does not apply to a licensee providing payroll processing services if
the licensee's client designates the intended recipients to the licensee and is responsible for
providing the disclosures required by paragraph (a), clause (2).
new text end

Sec. 33.

new text begin [53B.59] NET WORTH.
new text end

new text begin (a) A licensee under this chapter must maintain at all times a tangible net worth that is
the greater of: (1) $100,000; or (2) three percent of total assets for the first $100,000,000;
two percent of additional assets between $100,000,000 to $1,000,000,000; and one-half
percent of additional assets over $1,000,000,000.
new text end

new text begin (b) Tangible net worth must be demonstrated in the initial application by the applicant's
most recent audited or unaudited financial statements under section 53B.38, paragraph (b),
clause (6).
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b), the commissioner has the authority, for good
cause shown, to exempt any applicant or licensee in-part or in whole from the requirements
of this section.
new text end

Sec. 34.

new text begin [53B.60] SURETY BOND.
new text end

new text begin (a) An applicant for a money transmission license must provide, and a licensee must at
all times maintain (1) security consisting of a surety bond in a form satisfactory to the
commissioner, or (2) with the commissioner's approval, a deposit instead of a bond in
accordance with this section.
new text end

new text begin (b) The amount of the required security under this section is:
new text end

new text begin (1) the greater of (i) $100,000, or (ii) an amount equal to one hundred percent of the
licensee's average daily money transmission liability in Minnesota, calculated for the most
recently completed three-month period, up to a maximum of $500,000; or
new text end

new text begin (2) in the event that the licensee's tangible net worth exceeds ten percent of total assets,
the licensee must maintain a surety bond of $100,000.
new text end

new text begin (c) A licensee that maintains a bond in the maximum amount provided for in paragraph
(b), clause (1) or (2), as applicable, is not required to calculate the licensee's average daily
money transmission liability in Minnesota for purposes of this section.
new text end

new text begin (d) A licensee may exceed the maximum required bond amount pursuant to section
53B.62, paragraph (a), clause (5).
new text end

new text begin (e) The security device remains effective until cancellation, which may occur only after
30 days' written notice to the commissioner. Cancellation does not affect the rights of any
claimant for any liability incurred or accrued during the period for which the bond was in
force.
new text end

new text begin (f) The security device must remain in place for no longer than five years after the
licensee ceases money transmission operations in Minnesota. Notwithstanding this paragraph,
the commissioner may permit the security device to be reduced or eliminated before that
time to the extent that the amount of the licensee's payment instruments outstanding in
Minnesota are reduced. The commissioner may also permit a licensee to substitute a letter
of credit or other form of security device acceptable to the commissioner for the security
device in place at the time the licensee ceases money transmission operations in Minnesota.
new text end

Sec. 35.

new text begin [53B.61] MAINTENANCE OF PERMISSIBLE INVESTMENTS.
new text end

new text begin (a) A licensee must maintain at all times permissible investments that have a market
value computed in accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of the licensee's outstanding money transmission
obligations.
new text end

new text begin (b) Except for permissible investments enumerated in section 53B.62, paragraph (a),
the commissioner may by administrative rule or order, with respect to any licensee, limit
the extent to which a specific investment maintained by a licensee within a class of
permissible investments may be considered a permissible investment, if the specific
investment represents undue risk to customers not reflected in the market value of
investments.
new text end

new text begin (c) Permissible investments, even if commingled with other assets of the licensee, are
held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
transmission obligations in the event of insolvency, the filing of a petition by or against the
licensee under the United States Bankruptcy Code, United States Code, title 11, sections
101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization,
the filing of a petition by or against the licensee for receivership, the commencement of any
other judicial or administrative proceeding for its dissolution or reorganization, or in the
event of an action by a creditor against the licensee who is not a beneficiary of this statutory
trust. No permissible investments impressed with a trust pursuant to this paragraph are
subject to attachment, levy of execution, or sequestration by order of any court, except for
a beneficiary of the statutory trust.
new text end

new text begin (d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
(4), the commissioner must notify the applicable regulator of each state in which the licensee
is licensed to engage in money transmission, if any, of the establishment of the trust or the
funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
any other permissible investments held in trust for the benefit of the purchasers and holders
of the licensee's outstanding money transmission obligations, are deemed held in trust for
the benefit of the purchasers and holders of the licensee's outstanding money transmission
obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
permissible investments are required to be held in Minnesota and other states, as defined
by a substantially similar statute in the other state. Any statutory trust established under this
section terminates upon extinguishment of all of the licensee's outstanding money
transmission obligations.
new text end

new text begin (e) The commissioner may by rule or by order allow other types of investments that the
commissioner determines are of sufficient liquidity and quality to be a permissible
investment. The commissioner is authorized to participate in efforts with other state regulators
to determine that other types of investments are of sufficient liquidity and quality to be a
permissible investment.
new text end

Sec. 36.

new text begin [53B.62] PERMISSIBLE INVESTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Certain investments permissible. new text end

new text begin The following investments are
permissible under section 53B.61:
new text end

new text begin (1) cash, including demand deposits, savings deposits, and funds in accounts held for
the benefit of the licensee's customers in a federally insured depository financial institution;
and cash equivalents, including ACH items in transit to the licensee and ACH items or
international wires in transit to a payee, cash in transit via armored car, cash in smart safes,
cash in licensee-owned locations, debit card or credit card funded transmission receivables
owed by any bank, or money market mutual funds rated AAA or the equivalent from any
eligible rating service;
new text end

new text begin (2) certificates of deposit or senior debt obligations of an insured depository institution,
as defined in section 3 of the Federal Deposit Insurance Act, United States Code, title 12,
section 1813, as amended or recodified from time to time, or as defined under the federal
Credit Union Act, United States Code, title 12, section 1781, as amended or recodified from
time to time;
new text end

new text begin (3) an obligation of the United States or a commission, agency, or instrumentality thereof;
an obligation that is guaranteed fully as to principal and interest by the United States; or an
obligation of a state or a governmental subdivision, agency, or instrumentality thereof;
new text end

new text begin (4) the full drawable amount of an irrevocable standby letter of credit, for which the
stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw
a sight draft under the letter of credit and present the sight draft to obtain funds up to the
letter of credit amount within seven days of presentation of the items required by subdivision
2, paragraph (c); and
new text end

new text begin (5) one hundred percent of the surety bond or deposit provided for under section 53B.60
that exceeds the average daily money transmission liability in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Letter of credit; requirements. new text end

new text begin (a) A letter of credit under subdivision 1,
clause (4), must:
new text end

new text begin (1) be issued by a federally insured depository financial institution, a foreign bank that
is authorized under federal law to maintain a federal agency or federal branch office in a
state or states, or a foreign bank that is authorized under state law to maintain a branch in
a state that: (i) bears an eligible rating or whose parent company bears an eligible rating;
and (ii) is regulated, supervised, and examined by United States federal or state authorities
having regulatory authority over banks, credit unions, and trust companies;
new text end

new text begin (2) be irrevocable, unconditional, and indicate that it is not subject to any condition or
qualifications outside of the letter of credit;
new text end

new text begin (3) not contain reference to any other agreements, documents, or entities, or otherwise
provide for any security interest in the licensee; and
new text end

new text begin (4) contain an issue date and expiration date, and expressly provide for automatic
extension without a written amendment, for an additional period of one year from the present
or each future expiration date, unless the issuer of the letter of credit notifies the
commissioner in writing by certified or registered mail or courier mail or other receipted
means, at least 60 days before any expiration date, that the irrevocable letter of credit will
not be extended.
new text end

new text begin (b) In the event of any notice of expiration or nonextension of a letter of credit issued
under paragraph (a), clause (4), the licensee must demonstrate to the satisfaction of the
commissioner, 15 days before the letter or credit's expiration, that the licensee maintains
and will maintain permissible investments in accordance with section 53B.61, paragraph
(a), upon the expiration of the letter of credit. If the licensee is not able to do so, the
commissioner may draw on the letter of credit in an amount up to the amount necessary to
meet the licensee's requirements to maintain permissible investments in accordance with
section 53B.61, paragraph (a). Any draw under this paragraph must be offset against the
licensee's outstanding money transmission obligations. The drawn funds must be held in
trust by the commissioner or the commissioner's designated agent, to the extent authorized
by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding
money transmission obligations.
new text end

new text begin (c) The letter of credit must provide that the issuer of the letter of credit must honor, at
sight, a presentation made by the beneficiary to the issuer of the following documents on
or before the expiration date of the letter of credit:
new text end

new text begin (1) the original letter of credit, including any amendments; and
new text end

new text begin (2) a written statement from the beneficiary stating that any of the following events have
occurred:
new text end

new text begin (i) the filing of a petition by or against the licensee under the United States Bankruptcy
Code, United States Code, title 11, sections 101 to 110, as amended or recodified from time
to time, for bankruptcy or reorganization;
new text end

new text begin (ii) the filing of a petition by or against the licensee for receivership, or the
commencement of any other judicial or administrative proceeding for the licensee's
dissolution or reorganization;
new text end

new text begin (iii) the seizure of assets of a licensee by a commissioner of any other state pursuant to
an emergency order issued in accordance with applicable law, on the basis of an action,
violation, or condition that has caused or is likely to cause the insolvency of the licensee;
or
new text end

new text begin (iv) the beneficiary has received notice of expiration or nonextension of a letter of credit
and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee
will maintain permissible investments in accordance with section 53B.61, paragraph (a),
upon the expiration or nonextension of the letter of credit.
new text end

new text begin (d) The commissioner may designate an agent to serve on the commissioner's behalf as
beneficiary to a letter of credit, provided the agent and letter of credit meet requirements
the commissioner establishes. The commissioner's agent may serve as agent for multiple
licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable
amount for the purposes of subdivision 1, clause (4), and this subdivision are assigned to
the commissioner.
new text end

new text begin (e) The commissioner is authorized to participate in multistate processes designed to
facilitate the issuance and administration of letters of credit, including but not limited to
services provided by the NMLS and State Regulatory Registry, LLC.
new text end

new text begin Subd. 3. new text end

new text begin Other permissible investments. new text end

new text begin Unless the commissioner by administrative
rule or order otherwise permits an investment to exceed the limit set forth in this subdivision,
the following investments are permissible under section 53B.61 to the extent specified:
new text end

new text begin (1) receivables that are payable to a licensee from its authorized delegates in the ordinary
course of business that are less than seven days old, up to 50 percent of the aggregate value
of the licensee's total permissible investments;
new text end

new text begin (2) of the receivables permissible under clause (1), receivables that are payable to a
licensee from a single authorized delegate in the ordinary course of business may not exceed
ten percent of the aggregate value of the licensee's total permissible investments;
new text end

new text begin (3) the following investments are permissible up to 20 percent per category and combined
up to 50 percent of the aggregate value of the licensee's total permissible investments:
new text end

new text begin (i) a short-term investment of up to six months bearing an eligible rating;
new text end

new text begin (ii) commercial paper bearing an eligible rating;
new text end

new text begin (iii) a bill, note, bond, or debenture bearing an eligible rating;
new text end

new text begin (iv) United States tri-party repurchase agreements collateralized at 100 percent or more
with United States government or agency securities, municipal bonds, or other securities
bearing an eligible rating;
new text end

new text begin (v) money market mutual funds rated less than "AAA" and equal to or higher than "A-"
by S&P, or the equivalent from any other eligible rating service; and
new text end

new text begin (vi) a mutual fund or other investment fund composed solely and exclusively of one or
more permissible investments listed in subdivision 1, clauses (1) to (3); and
new text end

new text begin (4) cash, including demand deposits, savings deposits, and funds in accounts held for
the benefit of the licensee's customers, at foreign depository institutions are permissible up
to ten percent of the aggregate value of the licensee's total permissible investments, if the
licensee has received a satisfactory rating in the licensee's most recent examination and the
foreign depository institution:
new text end

new text begin (i) has an eligible rating;
new text end

new text begin (ii) is registered under the Foreign Account Tax Compliance Act, Public Law 111-147;
new text end

new text begin (iii) is not located in any country subject to sanctions from the Office of Foreign Asset
Control; and
new text end

new text begin (iv) is not located in a high-risk or noncooperative jurisdiction, as designated by the
Financial Action Task Force.
new text end

Sec. 37.

new text begin [53B.63] SUSPENSION; REVOCATION.
new text end

new text begin (a) The commissioner may suspend or revoke a license or order a licensee to revoke the
designation of an authorized delegate if:
new text end

new text begin (1) the licensee violates this chapter, or an administrative rule adopted or an order issued
under this chapter;
new text end

new text begin (2) the licensee does not cooperate with an examination or investigation conducted by
the commissioner;
new text end

new text begin (3) the licensee engages in fraud, intentional misrepresentation, or gross negligence;
new text end

new text begin (4) an authorized delegate is convicted of a violation of a state or federal statute
prohibiting money laundering, or violates an administrative rule adopted or an order issued
under this chapter, as a result of the licensee's willful misconduct or willful blindness;
new text end

new text begin (5) the competence, experience, character, or general fitness of the licensee, authorized
delegate, person in control of a licensee, key individual, or responsible person of the
authorized delegate indicates that it is not in the public interest to permit the person to
provide money transmission;
new text end

new text begin (6) the licensee engages in an unsafe or unsound practice;
new text end

new text begin (7) the licensee is insolvent, suspends payment of its obligations, or makes a general
assignment for the benefit of its creditors; or
new text end

new text begin (8) the licensee does not remove an authorized delegate after the commissioner issues
and serves upon the licensee a final order that includes a finding that the authorized delegate
has violated this chapter.
new text end

new text begin (b) When determining whether a licensee is engaging in an unsafe or unsound practice,
the commissioner may consider the size and condition of the licensee's money transmission,
the magnitude of the loss, the gravity of the violation of this chapter, and the previous
conduct of the person involved.
new text end

Sec. 38.

new text begin [53B.64] AUTHORIZED DELEGATES; SUSPENSION AND
REVOCATION.
new text end

new text begin (a) The commissioner may issue an order suspending or revoking the designation of an
authorized delegate if the commissioner finds:
new text end

new text begin (1) the authorized delegate violated this chapter, or an administrative rule adopted or an
order issued under this chapter;
new text end

new text begin (2) the authorized delegate did not cooperate with an examination or investigation
conducted by the commissioner;
new text end

new text begin (3) the authorized delegate engaged in fraud, intentional misrepresentation, or gross
negligence;
new text end

new text begin (4) the authorized delegate is convicted of a violation of a state or federal anti-money
laundering statute;
new text end

new text begin (5) the competence, experience, character, or general fitness of the authorized delegate
or a person in control of the authorized delegate indicates that it is not in the public interest
to permit the authorized delegate to provide money transmission; or
new text end

new text begin (6) the authorized delegate is engaging in an unsafe or unsound practice.
new text end

new text begin (b) When determining whether an authorized delegate is engaging in an unsafe or unsound
practice, the commissioner may consider the size and condition of the authorized delegate's
provision of money transmission, the magnitude of the loss, the gravity of the violation of
this chapter, or an administrative rule adopted or order issued under this chapter, and the
previous conduct of the authorized delegate.
new text end

new text begin (c) An authorized delegate may apply for relief from a suspension or revocation of
designation as an authorized delegate in the same manner as a licensee.
new text end

Sec. 39.

new text begin [53B.65] ENFORCEMENT.
new text end

new text begin Section 45.027 applies to this chapter.
new text end

Sec. 40.

new text begin [53B.66] CRIMINAL PENALTIES.
new text end

new text begin (a) A person who intentionally makes a false statement, misrepresentation, or false
certification in a record filed or required to be maintained under this chapter or that
intentionally makes a false entry or omits a material entry in a record filed or required to
be maintained under this chapter is guilty of a felony.
new text end

new text begin (b) A person who knowingly engages in an activity for which a license is required under
this chapter without being licensed under this chapter, and who receives more than $1,000
in compensation within a 30-day period from the activity, is guilty of a felony.
new text end

new text begin (c) A person who knowingly engages in an activity for which a license is required under
this chapter without being licensed under this chapter, and who receives more than $500
but less than $1,000 in compensation within a 30-day period from the activity, is guilty of
a gross misdemeanor.
new text end

new text begin (d) A person who knowingly engages in an activity for which a license is required under
this chapter without being licensed under this chapter, and who receives no more than $500
in compensation within a 30-day period from the activity, is guilty of a misdemeanor.
new text end

Sec. 41.

new text begin [53B.67] SEVERABILITY.
new text end

new text begin If any provision of this chapter or the chapter's application to any person or circumstance
is held invalid, the invalidity does not affect other provisions or applications of this chapter
that can be given effect without the invalid provision or application.
new text end

Sec. 42.

new text begin [53B.68] TRANSITION PERIOD.
new text end

new text begin (a) A person licensed in Minnesota to engage in the business of money transmission is
not subject to the provisions of this chapter to the extent that this chapter's provisions conflict
with current law or establish new requirements not imposed under current law until the
licensee renews the licensee's current license or for five months after the effective date of
this chapter, whichever is later.
new text end

new text begin (b) Notwithstanding paragraph (a), a licensee is only required to amend the licensee's
authorized delegate contracts for contracts entered into or amended after the effective date
or the completion of any transition period contemplated under paragraph (a). Nothing in
this section limits an authorized delegate's obligations to operate in full compliance with
this chapter, as required under section 53B.51, paragraph (c).
new text end

Sec. 43.

new text begin [53B.69] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For purposes of sections 53B.70 to 53B.74, the following terms
have the meaning given them.
new text end

new text begin Subd. 2. new text end

new text begin Control of virtual currency. new text end

new text begin "Control of virtual currency," when used in
reference to a transaction or relationship involving virtual currency, means the power to
execute unilaterally or prevent indefinitely a virtual currency transaction.
new text end

new text begin Subd. 3. new text end

new text begin Exchange. new text end

new text begin "Exchange," used as a verb, means to assume control of virtual
currency from or on behalf of a person, at least momentarily, to sell, trade, or convert:
new text end

new text begin (1) virtual currency for money, bank credit, or one or more forms of virtual currency;
or
new text end

new text begin (2) money or bank credit for one or more forms of virtual currency.
new text end

new text begin Subd. 4. new text end

new text begin Transfer. new text end

new text begin "Transfer" means to assume control of virtual currency from or on
behalf of a person and to:
new text end

new text begin (1) credit the virtual currency to the account of another person;
new text end

new text begin (2) move the virtual currency from one account of a person to another account of the
same person; or
new text end

new text begin (3) relinquish control of virtual currency to another person.
new text end

new text begin Subd. 5. new text end

new text begin United States dollar equivalent of virtual currency. new text end

new text begin "United States dollar
equivalent of virtual currency" means the equivalent value of a particular virtual currency
in United States dollars shown on a virtual-currency exchange based in the United States
for a particular date or period specified in this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Virtual currency. new text end

new text begin (a) "Virtual currency" means a digital representation of value
that:
new text end

new text begin (1) is used as a medium of exchange, unit of account, or store of value; and
new text end

new text begin (2) is not money, whether or not denominated in money.
new text end

new text begin (b) Virtual currency does not include:
new text end

new text begin (1) a transaction in which a merchant grants, as part of an affinity or rewards program,
value that cannot be taken from or exchanged with the merchant for money, bank credit, or
virtual currency; or
new text end

new text begin (2) a digital representation of value issued by or on behalf of a publisher and used solely
within an online game, game platform, or family of games sold by the same publisher or
offered on the same game platform.
new text end

new text begin Subd. 7. new text end

new text begin Virtual-currency administration. new text end

new text begin "Virtual-currency administration" means
issuing virtual currency with the authority to redeem the currency for money, bank credit,
or other virtual currency.
new text end

new text begin Subd. 8. new text end

new text begin Virtual-currency business activity. new text end

new text begin "Virtual-currency business activity" means:
new text end

new text begin (1) exchanging, transferring, or storing virtual currency or engaging in virtual-currency
administration, whether directly or through an agreement with a virtual-currency
control-services vendor;
new text end

new text begin (2) holding electronic precious metals or electronic certificates representing interests in
precious metals on behalf of another person or issuing shares or electronic certificates
representing interests in precious metals; or
new text end

new text begin (3) exchanging one or more digital representations of value used within one or more
online games, game platforms, or family of games for:
new text end

new text begin (i) virtual currency offered by or on behalf of the same publisher from which the original
digital representation of value was received; or
new text end

new text begin (ii) money or bank credit outside the online game, game platform, or family of games
offered by or on behalf of the same publisher from which the original digital representation
of value was received.
new text end

new text begin Subd. 9. new text end

new text begin Virtual-currency control-services vendor. new text end

new text begin "Virtual-currency control-services
vendor" means a person that has control of virtual currency solely under an agreement with
a person that, on behalf of another person, assumes control of virtual currency.
new text end

Sec. 44.

new text begin [53B.70] SCOPE.
new text end

new text begin (a) Sections 53B.71 to 53B.74 do not apply to the exchange, transfer, or storage of virtual
currency or to virtual-currency administration to the extent the Electronic Fund Transfer
Act of 1978, United States Code, title 15, sections 1693 to 1693r, as amended or recodified
from time to time; the Securities Exchange Act of 1934, United States Code, title 15, sections
78a to 78oo, as amended or recodified from time to time; the Commodities Exchange Act
of 1936, United States Code, title 7, sections 1 to 27f, as amended or recodified from time
to time; or chapter 80A govern the activity.
new text end

new text begin (b) Sections 53B.71 to 53B.74 do not apply to activity by:
new text end

new text begin (1) a person that:
new text end

new text begin (i) contributes only connectivity software or computing power to a decentralized virtual
currency, or to a protocol governing transfer of the digital representation of value;
new text end

new text begin (ii) provides only data storage or security services for a business engaged in
virtual-currency business activity and does not otherwise engage in virtual-currency business
activity on behalf of another person; or
new text end

new text begin (iii) provides only to a person otherwise exempt from this chapter virtual currency as
one or more enterprise solutions used solely among each other and has no agreement or
relationship with a person that is an end-user of virtual currency;
new text end

new text begin (2) a person using virtual currency, including creating, investing, buying or selling, or
obtaining virtual currency as payment for the purchase or sale of goods or services, solely:
new text end

new text begin (i) on the person's own behalf;
new text end

new text begin (ii) for personal, family, or household purposes; or
new text end

new text begin (iii) for academic purposes;
new text end

new text begin (3) a person whose virtual-currency business activity with or on behalf of persons is
reasonably expected to be valued, in the aggregate, on an annual basis at $5,000 or less,
measured by the United States dollar equivalent of virtual currency;
new text end

new text begin (4) an attorney to the extent of providing escrow services to a person;
new text end

new text begin (5) a title insurance company to the extent of providing escrow services to a person; or
new text end

new text begin (6) a securities intermediary, as defined under section 336.8-102(14), or a commodity
intermediary, as defined under section 336.9-102(17), that:
new text end

new text begin (i) does not engage in the ordinary course of business in virtual-currency business activity
with or on behalf of a person in addition to maintaining securities accounts or commodities
accounts and is regulated as a securities intermediary or commodity intermediary under
federal law, law of Minnesota other than this chapter, or law of another state; and
new text end

new text begin (ii) affords a person protections comparable to those set forth under section 53B.37.
new text end

new text begin (c) Sections 53B.71 to 53B.74 do not apply to a secured creditor, as defined under
sections 336.9-101 to 336.9-809 or to a creditor with a judicial lien or lien arising by
operation of law on collateral that is virtual currency, if the virtual-currency business activity
of the creditor is limited to enforcement of the security interest in compliance with sections
336.9-101 to 336.9-809 or lien in compliance with the law applicable to the lien.
new text end

new text begin (d) Sections 53B.71 to 53B.74 do not apply to a virtual-currency control-services vendor.
new text end

new text begin (e) Sections 53B.71 to 53B.74 do not apply to a person that:
new text end

new text begin (1) does not receive compensation from a person to:
new text end

new text begin (i) provide virtual-currency products or services; or
new text end

new text begin (ii) conduct virtual-currency business activity; or
new text end

new text begin (2) is engaged in testing products or services with the person's own money.
new text end

new text begin (f) The commissioner may determine that a person or class of persons, given facts
particular to the person or class, should be exempt from this chapter, whether the person or
class is covered by requirements imposed under federal law on a money-service business.
new text end

Sec. 45.

new text begin [53B.71] VIRTUAL CURRENCY BUSINESS ACTIVITY; CONDITIONS
PRECEDENT.
new text end

new text begin (a) A person may not engage in virtual-currency business activity, or hold itself out as
being able to engage in virtual-currency business activity, with or on behalf of another
person unless the person is:
new text end

new text begin (1) licensed in Minnesota by the commissioner under section 53B.40; or
new text end

new text begin (2) exempt from licensing under section 53B.29.
new text end

new text begin (b) A person that is licensed to engage in virtual-currency business activity is engaged
in the business of money transmission and is subject to the requirements of this chapter.
new text end

Sec. 46.

new text begin [53B.72] REQUIRED DISCLOSURES.
new text end

new text begin (a) A licensee that engages in virtual currency business activity must provide to a person
who uses the licensee's products or services the disclosures required by paragraph (b) and
any additional disclosure the commissioner by administrative rule determines reasonably
necessary to protect persons. The commissioner must determine by administrative rule the
time and form required for disclosure. A disclosure required by this section must be made
separately from any other information provided by the licensee and in a clear and conspicuous
manner in a record the person may keep. A licensee may propose for the commissioner's
approval alternate disclosures as more appropriate for the licensee's virtual-currency business
activity with or on behalf of persons.
new text end

new text begin (b) Before establishing a relationship with a person, a licensee must disclose, to the
extent applicable to the virtual-currency business activity the licensee undertakes with the
person:
new text end

new text begin (1) a schedule of fees and charges the licensee may assess, the manner by which fees
and charges are calculated if the fees and charges are not set in advance and disclosed, and
the timing of the fees and charges;
new text end

new text begin (2) whether the product or service provided by the licensee is covered by:
new text end

new text begin (i) a form of insurance or is otherwise guaranteed against loss by an agency of the United
States:
new text end

new text begin (A) up to the full United States dollar equivalent of virtual currency purchased from the
licensee or for control of virtual currency by the licensee as of the date of the placement or
purchase, including the maximum amount provided by insurance under the Federal Deposit
Insurance Corporation or otherwise available from the Securities Investor Protection
Corporation; or
new text end

new text begin (B) if not provided at the full United States dollar equivalent of virtual currency purchased
from the licensee or for control of virtual currency by the licensee, the maximum amount
of coverage for each person expressed in the United States dollar equivalent of the virtual
currency; or
new text end

new text begin (ii) private insurance against theft or loss, including cyber theft or theft by other means;
new text end

new text begin (3) the irrevocability of a transfer or exchange and any exception to irrevocability;
new text end

new text begin (4) a description of:
new text end

new text begin (i) liability for an unauthorized, mistaken, or accidental transfer or exchange;
new text end

new text begin (ii) the person's responsibility to provide notice to the licensee of the transfer or exchange;
new text end

new text begin (iii) the basis for any recovery by the person from the licensee;
new text end

new text begin (iv) general error-resolution rights applicable to the transfer or exchange; and
new text end

new text begin (v) the method for the person to update the person's contact information with the licensee;
new text end

new text begin (5) that the date or time when the transfer or exchange is made and the person's account
is debited may differ from the date or time when the person initiates the instruction to make
the transfer or exchange;
new text end

new text begin (6) whether the person has a right to stop a preauthorized payment or revoke authorization
for a transfer, and the procedure to initiate a stop-payment order or revoke authorization
for a subsequent transfer;
new text end

new text begin (7) the person's right to receive a receipt, trade ticket, or other evidence of the transfer
or exchange;
new text end

new text begin (8) the person's right to at least 30 days' prior notice of a change in the licensee's fee
schedule, other terms and conditions of operating the licensee's virtual-currency business
activity with the person, and the policies applicable to the person's account; and
new text end

new text begin (9) that virtual currency is not money.
new text end

new text begin (c) Except as otherwise provided in paragraph (d), at the conclusion of a virtual-currency
transaction with or on behalf of a person, a licensee must provide the person a confirmation
in a record. The record must contain:
new text end

new text begin (1) the name and contact information of the licensee, including information the person
may need to ask a question or file a complaint;
new text end

new text begin (2) the type, value, date, precise time, and amount of the transaction; and
new text end

new text begin (3) the fee charged for the transaction, including any charge for conversion of virtual
currency to money, bank credit, or other virtual currency.
new text end

new text begin (d) If a licensee discloses that it provides a daily confirmation in the initial disclosure
under paragraph (c), the licensee may elect to provide a single, daily confirmation for all
transactions with or on behalf of a person on that day instead of a per-transaction
confirmation.
new text end

Sec. 47.

new text begin [53B.73] PROPERTY INTERESTS AND ENTITLEMENTS TO VIRTUAL
CURRENCY.
new text end

new text begin (a) A licensee that has control of virtual currency for one or more persons must maintain
control of virtual currency in each type of virtual currency sufficient to satisfy the aggregate
entitlements of the persons to the type of virtual currency.
new text end

new text begin (b) If a licensee violates paragraph (a), the property interests of the persons in the virtual
currency are pro rata property interests in the type of virtual currency to which the persons
are entitled, without regard to the time the persons became entitled to the virtual currency
or the licensee obtained control of the virtual currency.
new text end

new text begin (c) The virtual currency referred to in this section is:
new text end

new text begin (1) held for the persons entitled to the virtual currency;
new text end

new text begin (2) not property of the licensee;
new text end

new text begin (3) not subject to the claims of creditors of the licensee; and
new text end

new text begin (4) a permissible investment under this chapter.
new text end

Sec. 48.

new text begin [53B.74] VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL
REQUIREMENTS.
new text end

new text begin (a) A licensee engaged in virtual currency business activities may include virtual currency
in the licensee's calculation of tangible net worth, by measuring the average value of the
virtual currency in United States dollar equivalent over the prior six months, excluding
control of virtual currency for a person entitled to the protections under section 53B.73.
new text end

new text begin (b) A licensee must maintain, for all virtual-currency business activity with or on behalf
of a person five years after the date of the activity, a record of:
new text end

new text begin (1) each of the licensee's transactions with or on behalf of the person, or for the licensee's
account in Minnesota, including:
new text end

new text begin (i) the identity of the person;
new text end

new text begin (ii) the form of the transaction;
new text end

new text begin (iii) the amount, date, and payment instructions given by the person; and
new text end

new text begin (iv) the account number, name, and United States Postal Service address of the person,
and, to the extent feasible, other parties to the transaction;
new text end

new text begin (2) the aggregate number of transactions and aggregate value of transactions by the
licensee with or on behalf of the person and for the licensee's account in this state, expressed
in the United States dollar equivalent of the virtual currency for the previous 12 calendar
months;
new text end

new text begin (3) each transaction in which the licensee exchanges one form of virtual currency for
money or another form of virtual currency with or on behalf of the person;
new text end

new text begin (4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities,
capital, income, and expenses;
new text end

new text begin (5) each business-call report the licensee is required to create or provide to the department
or NMLS;
new text end

new text begin (6) bank statements and bank reconciliation records for the licensee and the name,
account number, and United States Postal Service address of each bank the licensee uses
to conduct virtual-currency business activity with or on behalf of the person;
new text end

new text begin (7) a report of any dispute with the person; and
new text end

new text begin (8) a report of any virtual-currency business activity transaction with or on behalf of a
person which the licensee was unable to complete.
new text end

new text begin (c) A licensee must maintain records required by paragraph (b) in a form that enables
the commissioner to determine whether the licensee is in compliance with this chapter, any
court order, and law of Minnesota other than this chapter.
new text end

Sec. 49. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 53B.01; 53B.02; 53B.03; 53B.04; 53B.05; 53B.06;
53B.07; 53B.08; 53B.09; 53B.10; 53B.11; 53B.12; 53B.13; 53B.14; 53B.15; 53B.16;
53B.17; 53B.18; 53B.19; 53B.20; 53B.21; 53B.22; 53B.23; 53B.24; 53B.25; 53B.26; and
53B.27, subdivisions 1, 2, 5, 6, and 7, new text end new text begin are repealed.
new text end

ARTICLE 6

ENERGY POLICY

Section 1.

Minnesota Statutes 2022, section 216B.62, subdivision 3b, is amended to read:

Subd. 3b.

Assessment for department regional and national duties.

deleted text begin (a) deleted text end In addition
to other assessments in subdivision 3, the department may assess up to deleted text begin $500,000 deleted text end new text begin $1,000,000 new text end
per fiscal year to perform the duties under section 216A.07, subdivision 3a, and to conduct
analysis that assesses energy grid reliability at state, regional, and national levels. The
amount in this subdivision shall be assessed to energy utilities in proportion to their respective
gross operating revenues from retail sales of gas or electric service within the state during
the last calendar year and shall be deposited into an account in the special revenue fund and
is appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state.

deleted text begin (b) By February 1, 2023, the commissioner of commerce must submit a written report
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must describe how the department has used
utility grid assessment funding under paragraph (a) and must explain the impact the grid
assessment funding has had on grid reliability in Minnesota.
deleted text end

deleted text begin (c) This subdivision expires June 30, 2023.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Low-income conservation program" means a utility program that offers energy
conservation services to low-income households under sections 216B.2403, subdivision 5,
and 216B.241, subdivision 7.
new text end

new text begin (c) "Preweatherization measure" has the meaning given in section 216B.2402, subdivision
20.
new text end

new text begin (d) "Weatherization assistance program" means the federal program described in Code
of Federal Regulations, title 10, part 440, et seq., designed to assist low-income households
reduce energy use.
new text end

new text begin (e) "Weatherization assistance services" means the energy measures installed in
households under the weatherization assistance program.
new text end

Sec. 3.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Establishment; purpose. new text end

new text begin A preweatherization program is established in the
department. The purpose of the program is to provide grants for preweatherization services,
as defined under section 216B.2402, subdivision 20, in order to expand the breadth and
depth of services provided to income-eligible households in Minnesota.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Preweatherization account. new text end

new text begin (a) A preweatherization account is created as a
separate account in the special revenue fund of the state treasury. The account consists of
money received from the general fund, provided by law, donated, allotted, transferred, or
otherwise provided to the account. Earnings, including interest, dividends, and any other
earnings arising from assets of the account, must be credited to the account. Money remaining
in the account at the end of a fiscal year does not cancel to the general fund and remains in
the account until expended. The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to pay for (1) grants issued
under the program, and (2) the reasonable costs incurred by the commissioner to administer
the program.
new text end

Sec. 5.

Minnesota Statutes 2022, section 216C.264, subdivision 5, is amended to read:

Subd. 5.

Grant allocation.

new text begin (a) new text end The commissioner must distribute supplementary state
grants in a manner consistent with the goal of producing the maximum number of weatherized
units. Supplementary state grants are provided primarily deleted text begin for the payment of additional labor
costs for the federal weatherization program, and as an incentive for the increased production
of weatherized units. deleted text end new text begin to pay for and may be used to:
new text end

new text begin (1) address physical deficiencies in a residence that increase heat loss, including
deficiencies that prohibit the residence from being eligible to receive federal weatherization
assistance;
new text end

new text begin (2) install eligible preweatherization measures established by the commissioner, as
required under section 216B.241, subdivision 7, paragraph (g);
new text end

new text begin (3) increase the number of weatherized residences;
new text end

new text begin (4) conduct outreach activities to make income-eligible households aware of available
weatherization services, to assist applicants in filling out applications for weatherization
assistance, and to provide translation services when necessary;
new text end

new text begin (5) enable projects in multifamily buildings to proceed even if the project cannot comply
with the federal requirement that projects must be completed within the same federal fiscal
year in which the project is begun;
new text end

new text begin (6) expand weatherization training opportunities in existing and new training programs;
new text end

new text begin (7) pay additional labor costs for the federal weatherization program; and
new text end

new text begin (8) provide an incentive for the increased production of weatherized units.
new text end

new text begin (b) new text end Criteria deleted text begin for the allocation of deleted text end new text begin used to allocate new text end state grants to local agencies include
existing local agency production levels, emergency needs, and the potential deleted text begin for maintaining deleted text end new text begin
to maintain new text end or deleted text begin increasing deleted text end new text begin increase new text end acceptable levels of production in the area.

new text begin (c) new text end An eligible local agency may receive advance funding for 90 days' production, but
thereafter must receive grants solely on the basis of new text begin the new text end program criteria new text begin under this
subdivision new text end .

Sec. 6.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Supplemental weatherization assistance program. new text end

new text begin The commissioner must
provide grants to weatherization service providers to address physical deficiencies and
install weatherization and preweatherization measures in residential buildings occupied by
eligible low-income households.
new text end

Sec. 7.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Training grants program. new text end

new text begin (a) The commissioner must establish a
weatherization training grant program to award grants through a competitive process to
educational institutions, certified training centers, labor organizations, and nonprofits to
assist with the costs associated with training and developing programs for careers in the
weatherization industry.
new text end

new text begin (b) In order to receive grant funds, a written application must be submitted to the
commissioner on a form developed by the commissioner.
new text end

new text begin (c) When awarding grants under this subdivision, the commissioner must prioritize
applications that:
new text end

new text begin (1) provide the highest quality training to prepare for in-demand careers;
new text end

new text begin (2) train workers to provide weatherization services that meet federal Building
Performance Institute certification requirements or Standard Work Specification
requirements, as required by the program; and
new text end

new text begin (3) leverage nonstate funds or in-kind contributions.
new text end

Sec. 8.

Minnesota Statutes 2022, section 216C.375, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 216C.376,
the following terms have the meanings given them.

(b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.

(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.

(d) "School" means: (1) a school that operates as part of an independent or special school
district; new text begin (2) a Tribal contract school; new text end or deleted text begin (2) deleted text end new text begin (3) new text end a state college or university that is under the
jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universities.

(e) "School district" means new text begin : (1) new text end an independent or special school district new text begin ; or (2) any other
public school district deemed appropriate by the commissioner, provided that at a minimum
the school owns the building and instruction for students occurs new text end .

(f) "Solar energy system" means photovoltaic or solar thermal devices.

(g) "Solar thermal" has the meaning given to "qualifying solar thermal project" in section
216B.2411, subdivision 2, paragraph (d).

(h) "State colleges and universities" has the meaning given in section 136F.01, subdivision
4.

Sec. 9.

Minnesota Statutes 2022, section 216C.375, subdivision 3, is amended to read:

Subd. 3.

Establishment of account.

new text begin (a) new text end A solar for schools program account is
established in the special revenue fund. Money received from the general fund must be
transferred to the commissioner of commerce and credited to the account. new text begin The account
consists of money received from the general fund, provided by law, donated, allocated,
transferred, or otherwise provided to the account. Earnings, including interest, dividends,
and any other earnings arising from the assets of the account, must be credited to the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of the
program under this section. new text end Except as otherwise provided in this paragraph, money deposited
in the account remains in the account until expended. Any money that remains in the account
on June 30, deleted text begin 2027 deleted text end new text begin 2034 new text end , cancels to the general fund.

Sec. 10.

Minnesota Statutes 2022, section 216C.375, subdivision 10, is amended to read:

Subd. 10.

Application deadline.

deleted text begin No deleted text end new text begin An new text end application deleted text begin may deleted text end new text begin must not new text end be submitted under
this section after December 31, deleted text begin 2025 deleted text end new text begin 2032 new text end .

Sec. 11.

Minnesota Statutes 2022, section 216C.375, subdivision 11, is amended to read:

Subd. 11.

Reporting.

Beginning January 15, 2022, and each year thereafter until January
15, deleted text begin 2028 deleted text end new text begin 2035 new text end , the commissioner must report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy regarding: (1) grants and amounts
awarded to schools under this section during the previous year; (2) financial assistance,
including amounts per award, provided to schools under section 216C.376 during the
previous year; and (3) any remaining balances available under this section and section
216C.376.

Sec. 12.

new text begin [216C.391] MINNESOTA STATE COMPETITIVENESS FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Competitive funds" means federal funds awarded to selected applicants based on
the grantor's evaluation of the strength of an application measured against all other
applications.
new text end

new text begin (c) "Disadvantaged community" has the meaning given by the federal agency disbursing
federal funds.
new text end

new text begin (d) "Eligible entity" means an entity located in Minnesota that is eligible to receive
federal funds, as determined by the grantor of the federal funds.
new text end

new text begin (e) "Federal funds" means federal formula or competitive funds available for award to
applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law
117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.
new text end

new text begin (f) "Formula funds" means federal funds awarded to all eligible applicants on a
noncompetitive basis.
new text end

new text begin (g) "Match" means the amount of state money a successful grantee in Minnesota is
required to contribute to a project as a condition of receiving federal funds.
new text end

new text begin (h) "Political subdivision" has the meaning given in section 331A.01, subdivision 3.
new text end

new text begin (i) "Project" means the activities that are proposed to be undertaken by an eligible entity
awarded federal funds and are located in Minnesota.
new text end

new text begin (j) "Tribal government" has the meaning given in section 116J.64, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of account; eligible expenditures. new text end

new text begin (a) A state competitiveness
fund account is created in the special revenue fund of the state treasury. The commissioner
must credit to the account appropriations and transfers to the account. Earnings, such as
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund but remains available until June 30, 2034. The commissioner is
the fiscal agent and must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner and must be used to:
new text end

new text begin (1) pay all or any portion of the state match required as a condition of receiving federal
funds, or to otherwise reduce the cost for projects which are awarded federal funds;
new text end

new text begin (2) award grants under subdivision 4 to obtain grant development assistance for eligible
entities; and
new text end

new text begin (3) pay the reasonable costs incurred by the department to assist eligible entities to
successfully compete for available federal funds.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards; eligible entities; priorities. new text end

new text begin Grants may be awarded under this
section to eligible entities in accordance with the following order of priorities:
new text end

new text begin (1) federal funds directed to the state that require a match;
new text end

new text begin (2) federal funds directed to a political subdivision or a Tribal government that require
a match;
new text end

new text begin (3) federal funds directed to an institution of higher education, a consumer-owned utility,
a business, or a nonprofit organization that require a match;
new text end

new text begin (4) federal funds directed to investor-owned utilities;
new text end

new text begin (5) federal funds directed to an eligible entity that require a match; and
new text end

new text begin (6) all other grant opportunities directed to eligible entities that do not require a match
but for which the commissioner determines that a grant made under this section is likely to
enhance the likelihood of an applicant's receiving federal funds, or to increase the potential
amount of federal funds received.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards; grant development assistance. new text end

new text begin Grants may be awarded under
this section to entities with expertise and experience in grant writing to assist eligible entities
to prepare grant applications for federal funds. Eligible grantees under this subdivision
include regional development commissions established in section 462.387, the West Central
Initiative Foundation, Minnesota Municipal Utilities Association, Minnesota Rural Electric
Association, Tribal governments, and any entity the commissioner determines will enhance
the competitiveness of grant applications from eligible entities located in areas not served
by a regional development commission.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) For grants that meet the criteria in subdivision 3, clauses
(1) to (3), the maximum grant award for each entity is 100 percent of the required match.
new text end

new text begin (b) For grants that meet the criteria in subdivision 3, clauses (4) and (5), the maximum
grant award is 50 percent of the required match, except that if the commissioner determines
that at least 40 percent of the direct benefits resulting from a project awarded federal funds
would be realized by residents of a disadvantaged community, the commissioner may award
up to 100 percent of the required match.
new text end

new text begin (c) For projects that meet the criteria in subdivision 3, clause (6), the commissioner may
award a grant up to ten percent of the amount of federal funds requested by the applicant,
except that if the commissioner determines that at least 40 percent of the direct benefits
resulting from a project awarded federal funds would be realized by residents of a
disadvantaged community, the commissioner may award up to 20 percent of the amount of
federal funds requested.
new text end

new text begin Subd. 6. new text end

new text begin Grant awards; administration. new text end

new text begin (a) An eligible entity seeking a grant award
under subdivision 3 or an entity seeking a grant award under subdivision 4 must submit an
application to the commissioner on a form prescribed by the commissioner. The
commissioner is responsible for receiving and reviewing grant applications and awarding
grants under this section, and shall develop administrative procedures governing the
application, evaluation, and award process. The commissioner may not make a grant award
under this section unless the commissioner has determined, and has notified the applicant
in writing, that the application is complete. In awarding grants under this section, the
commissioner shall endeavor to make awards to applicants from all regions of the state.
new text end

new text begin (b) The department must provide technical assistance to applicants. Applicants may also
receive grant development assistance at no cost from entities awarded grants for that purpose
under subdivision 4.
new text end

new text begin (c) Within ten business days of determining a grant award amount to an applicant, the
commissioner must:
new text end

new text begin (1) reserve that amount for that specific grant in the state competitiveness fund account;
and
new text end

new text begin (2) notify the Legislative Advisory Commission in writing of the reserved amount, the
name of the applicant, the purpose of the project, and the unreserved balance of funds
remaining in the account.
new text end

new text begin (d) Reserved funds are committed to the grant and use specified in the notice provided
under paragraph (c) and are unavailable for reservation or appropriation for other applications
unless and until the commissioner receives written notice from the applicant that the
application for federal funds has been withdrawn or from the federal grantor that the
application for which funds from the account were reserved has been denied federal funds.
new text end

new text begin (e) Reserved funds may only be expended upon presentation of written notice from the
federal grantor to the commissioner stating that the applicant will receive federal funds for
the project described in the application. If the amount of federal funds awarded to an applicant
differs from the amount requested in the application, the commissioner may adjust the award
made under this section accordingly.
new text end

new text begin (f) The commissioner must notify the chairs and ranking minority members of the
legislative committees with jurisdiction over energy finance when the unreserved balance
of the competitive fund account reaches the following amounts: 50 percent, unreserved; 25
percent, unreserved; 15 percent, unreserved; and five percent. The notification must be
within ten days after each level of unreserved balance is reached.
new text end

new text begin Subd. 7. new text end

new text begin Report; audit. new text end

new text begin Beginning February 15, 2024, and each February 15 thereafter
until February 15, 2035, the commissioner must submit a written report to the chairs and
ranking minority members of the legislative committees with jurisdiction over energy finance
on the activities taken and expenditures made under this section. The report must, at a
minimum, include the following information for the most recent calendar year:
new text end

new text begin (1) the number of applications for grants filed with the commissioner and the total amount
of grant funds requested;
new text end

new text begin (2) each grant awarded;
new text end

new text begin (3) the number of additional personnel hired for the purposes of this section;
new text end

new text begin (4) expenditures on activities conducted under this section, reported separately for these
areas:
new text end

new text begin (i) the provision of technical assistance;
new text end

new text begin (ii) grants made under subdivision 4 to entities to assist applicants with grant writing;
new text end

new text begin (iii) application review and evaluation;
new text end

new text begin (iv) information technology activities; and
new text end

new text begin (v) other expenditures;
new text end

new text begin (5) the unreserved balance remaining in the state competitiveness fund account;
new text end

new text begin (6) a copy of a financial audit of the department's expenditures under this section,
conducted by an independent auditor;
new text end

new text begin (7) recommendations for legislation to enhance the ability of eligible entities to
successfully compete for federal funds; and
new text end

new text begin (8) additional available funding opportunities to obtain energy-related funding from
federal agencies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-03617

53B.01 CITATION.

This chapter may be cited as the "Minnesota Money Transmitters Act."

53B.02 LICENSE REQUIRED.

On or after January 1, 2002, no person except those exempt pursuant to section 53B.04 shall engage in the business of money transmission without a license as provided in this chapter. A licensee may conduct business in this state at one or more locations, directly or indirectly owned, or through one or more authorized delegates, or both, under a single license granted to the licensee.

53B.03 DEFINITIONS.

Subdivision 1.

Scope.

For purposes of this chapter, the definitions in this section apply unless the context requires otherwise.

Subd. 2.

Applicant.

"Applicant" means a person filing an application for a license under this chapter.

Subd. 3.

Authorized delegate.

"Authorized delegate" means an entity designated by the licensee under this chapter, or by an exempt entity, to sell or issue payment instruments or engage in the business of transmitting money on behalf of a licensee.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of commerce.

Subd. 5.

Control.

"Control" means ownership of, or the power to vote, ten percent or more of the outstanding voting securities of a licensee or controlling person. For purposes of determining the percentage of a licensee controlled by any person, the person's interest must be aggregated with the interest of any other person controlled by the person or by any spouse, parent, or child of the person.

Subd. 6.

Controlling person.

"Controlling person" means any person in control of a licensee.

Subd. 7.

Electronic instrument.

"Electronic instrument" means a card or other tangible object for the transmission or payment of money that contains a microprocessor chip, magnetic stripe, or other means for the storage of information, that is prefunded and for which the value is decreased upon each use. The term does not include a prepaid telephone card, electronic benefits transfer card, or any other card or other tangible object that is redeemable by the issuer in the issuer's goods or services.

Subd. 8.

Executive officer.

"Executive officer" means the licensee's president, chair of the executive committee, senior officer responsible for the licensee's business, chief financial officer, and any other person who performs similar functions.

Subd. 9.

Exempt entity.

"Exempt entity" means a person to which this chapter does not apply under section 53B.04.

Subd. 10.

Key shareholder.

"Key shareholder" means any person, or group of persons acting in concert, who is the owner of ten percent or more of any voting class of an applicant's stock.

Subd. 11.

Licensee.

"Licensee" means a person licensed under this chapter.

Subd. 12.

Material litigation.

"Material litigation" means any litigation in which an applicant or a licensee has been a defendant or been named in a civil judgment involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.

Subd. 13.

Money transmission.

"Money transmission" means selling or issuing payment instruments or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including but not limited to payment instrument, wire, facsimile, or electronic transfer.

Subd. 14.

Outstanding payment instrument.

"Outstanding payment instrument" means any payment instrument issued by the licensee that has been sold in the United States directly by the licensee or any payment instrument issued by the licensee that has been sold by an authorized delegate of the licensee in the United States, and that has not yet been paid by or for the licensee.

Subd. 15.

Payment instrument.

"Payment instrument" means any electronic or written check, draft, money order, travelers check, or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable. The term does not include any credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services.

Subd. 16.

Permissible investments.

"Permissible investments" means:

(1) cash;

(2) certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;

(3) bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System;

(4) any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates these securities;

(5) investment securities that are obligations of the United States, its agencies or instrumentalities, or obligations that are guaranteed fully as to principal and interest of the United States, or any obligations of any state, municipality, or any political subdivision of a state or municipality;

(6) shares in a money market mutual fund, interest-bearing bills or notes or bonds, debentures, or a fund composed of one or more permissible investments;

(7) any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;

(8) receivables that are due to a licensee from its authorized delegates under a contract described in section 53B.20, that are not past due or doubtful of collection; or

(9) any other investments or security device approved by the commissioner.

Subd. 17.

Person.

"Person" means any individual, corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship, or similar organization.

Subd. 18.

Remit.

"Remit" means either to make direct payment of the funds to the licensee or its representatives authorized to receive those funds or to deposit the funds in a bank, credit union, savings association, or other similar financial institution in an account specified by the licensee.

53B.04 EXEMPTIONS.

Authorized delegates of a licensee or of an exempt entity, acting within the scope of authority conferred by a written contract as described in section 53B.20, are not required to obtain a license under this chapter. This chapter does not apply to:

(1) the United States or any department, agency, or instrumentality of the United States;

(2) the United States Postal Service;

(3) the state or any political subdivision of the state;

(4) banks, credit unions, savings associations, savings banks, mutual banks organized under the laws of any state or the United States, or bank holding companies which have a banking subsidiary located in Minnesota and whose debt securities have an investment grade rating by a national rating agency, provided that if they issue or sell payment instruments through authorized delegates who are not banks, bank holding companies, credit unions, savings associations, savings banks, or mutual banks, those authorized delegates must comply with all requirements imposed upon authorized delegates under this chapter; and

(5) the provision of electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Federal Reserve Board Regulation E, by a contractor for and on behalf of the United States or any department, agency, or instrumentality of the United States, or any state or any political subdivision of the state.

53B.05 LICENSE QUALIFICATIONS.

Subdivision 1.

Net worth.

Each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. Each licensee engaging in money transmission at more than three locations in the state, but fewer than seven locations, either directly or through authorized delegates, must have a net worth of at least $50,000. Each licensee engaging in money transmission at more than six locations in the state, either directly or through authorized delegates, shall have a net worth of $100,000 and an additional net worth of $50,000 for each location or authorized delegate located in the state in excess of seven, to a maximum of $500,000. Net worth shall be calculated in accordance with generally accepted accounting principles.

Subd. 2.

Corporate applicant; good standing.

Every corporate applicant, at the time of the filing of an application for a license under this chapter and at all times after a license is issued, must be in good standing in the state of its incorporation. All noncorporate applicants shall, at the time of the filing of an application for a license under this chapter and at all times after a license is issued, be registered or qualified to do business in the state.

53B.06 PERMISSIBLE INVESTMENTS AND STATUTORY TRUST.

(a) Each licensee under this chapter must at all times possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding payment instruments sold by the licensee or reported as sold by an authorized delegate in the United States. This requirement may be waived by the commissioner if the dollar volume of a licensee's outstanding payment instruments does not exceed the bond or other security devices posted by the licensee under section 53B.08.

(b) Permissible investments, even if commingled with other assets of the licensee, are considered to be held in trust for the benefit of the purchasers and holders of the licensee's outstanding payment instruments in the event of the bankruptcy of the licensee.

53B.07 LICENSE APPLICATION.

Subdivision 1.

Requirements.

An application for a license under this chapter must be made in writing, under oath, and in a form prescribed by the commissioner.

Subd. 2.

General contents.

An application must contain:

(1) the exact name of the applicant, the applicant's principal address, any fictitious or trade name used by the applicant in the conduct of its business, and the location of the applicant's business records;

(2) the history of the applicant's or any controlling person's material litigation during the preceding ten years and criminal convictions;

(3) a description of the activities conducted by the applicant and a history of operations;

(4) a description of the business activities in which the applicant seeks to be engaged in the state;

(5) a list identifying the applicant's proposed authorized delegates in the state, if any, at the time of the filing of the license application;

(6) a sample authorized delegate contract, if applicable;

(7) a sample form of payment instrument, if applicable;

(8) the location or locations at which the applicant and its authorized delegates, if any, propose to conduct the licensed activities in the state; and

(9) the name, address, and account numbers for the clearing bank or banks on which the applicant's payment instruments will be drawn or through which these payment instruments will be payable.

Subd. 3.

Additional information from corporations.

If the applicant is a corporation, the applicant must also provide:

(1) the date of the applicant's incorporation and state of incorporation;

(2) a certificate of good standing from the state in which the applicant was incorporated;

(3) a description of the corporate structure of the applicant, including the identity of any parent or subsidiary of the applicant, and the disclosure of whether any parent or subsidiary is publicly traded on any stock exchange;

(4) the name, business and residence address, and employment history for the past five years of the applicant's executive officers and the officers or managers who will be in charge of the applicant's activities to be licensed under this chapter;

(5) the name, business and residence address, and employment history for the period five years prior to the date of the application of any key shareholder of the applicant;

(6) the history of material litigation during the preceding ten years and criminal convictions of every executive officer or key shareholder of the applicant;

(7) a copy of the applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder equity, and statement of changes in financial position, and, if available, the applicant's audited financial statements for the immediately preceding two-year period. However, if the applicant is a wholly owned subsidiary of another corporation, the applicant may submit either the parent corporation's consolidated audited financial statements for the current year and for the immediately preceding two-year period or the parent corporation's Form 10K reports filed with the United States Securities and Exchange Commission for the prior three years in lieu of the applicant's financial statements. If the applicant is a wholly owned subsidiary of a corporation having its principal place of business outside the United States, similar documentation filed with the parent corporation's non-United States regulator may be submitted to satisfy this provision; and

(8) copies of all filings, if any, made by the applicant with the United States Securities and Exchange Commission, or with a similar regulator in a country other than the United States, within the year preceding the date of filing the application.

Subd. 4.

Additional information from noncorporate applicants.

If the applicant is not a corporation, the applicant must also provide:

(1) the name, business and residence address, personal financial statement, and employment history for the past five years, of each principal of the applicant and the name, business and residence address, and employment history for the past five years of any other person or persons who will be in charge of the applicant's activities to be licensed under this chapter;

(2) the place and date of the applicant's registration or qualification to do business in this state;

(3) the history of material litigation during the preceding ten years and criminal convictions for each individual having any ownership interest in the applicant and each individual who exercises supervisory responsibility with respect to the applicant's activities; and

(4) copies of the applicant's audited financial statements, including balance sheet, statement of income or loss, and statement of changes in financial position, for the current year and, if available, for the immediately preceding two-year period.

Subd. 5.

Waiver.

The commissioner may, for good cause shown, waive any requirement of this section with respect to any license application or to permit a license applicant to submit substituted information in its license application in lieu of the information required by this section.

Subd. 6.

Records and fees; maintenance and processing.

Section 58A.04, subdivisions 2 and 3, apply to this section.

53B.08 BOND OR OTHER SECURITY DEVICE.

Subdivision 1.

Requirement.

Each application must be accompanied by a surety bond, irrevocable letter of credit, or other similar security device acceptable to the commissioner in the amount of $25,000. If the applicant proposes to engage in business under this chapter at more than three locations, but less than seven locations, through authorized delegates or otherwise, then the amount of the security device must be increased to $50,000. If the applicant proposes to engage in business under this chapter at more than six locations, through authorized delegates or otherwise, then the amount of the security device must be increased by $50,000 for each location over six, up to a maximum of $250,000. The security device must be in a form satisfactory to the commissioner and must run to the state for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with the sale and issuance of payment instruments or transmission of money. In the case of a bond, the aggregate liability of the surety in no event shall exceed the principal sum of the bond. Claimants against the licensee may themselves bring suit directly on the security device or the commissioner may bring suit on behalf of these claimants, either in one action or in successive actions.

Subd. 2.

Acceptable alternatives.

In lieu of a security device under subdivision 1 or of any portion of the principal of the security device, as required by subdivision 1, the licensee may deposit with the commissioner, or with banks in this state that the licensee designates and the commissioner approves, cash, interest-bearing stocks and bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality of the United States, or guaranteed by the United States, or of this state, or of a city, county, town, village, school district, or instrumentality of this state, or guaranteed by this state, to an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of the security device or portion of the security device. The securities or cash must be deposited and held to secure the same obligations as would the security device. The depositor shall receive all interest and dividends. The depositor may, with the approval of the commissioner, substitute other securities for those deposited, and is required to do so on written order of the commissioner made for good cause shown.

Subd. 3.

Cancellation.

The security device remains in effect until cancellation, which may occur only after 30 days' written notice to the commissioner. Cancellation does not affect the rights of any claimant for any liability incurred or accrued during the period for which the bond was in force.

Subd. 4.

Duration.

The security device must remain in place for no longer than five years after the licensee ceases money transmission operations in the state. However, notwithstanding this provision, the commissioner may permit the security device to be reduced or eliminated before that time to the extent that the amount of the licensee's payment instruments outstanding in this state are reduced. The commissioner may also permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in the state.

53B.09 APPLICATION FEE.

Each application must be accompanied by a nonrefundable application fee in the amount of $4,000.

53B.10 ISSUANCE OF LICENSE.

Subdivision 1.

Investigation.

Upon the filing of a complete application, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which must be borne by the applicant. If the commissioner finds that the requirements imposed by this chapter have been met and that the required license fee has been paid, the commissioner shall issue a license to the applicant authorizing the applicant to engage in the licensed activities in this state for a term of one year. If these requirements have not been met, the commissioner shall deny the application in writing, setting forth the reasons for the denial.

Subd. 2.

Denial hearing.

Any applicant aggrieved by a denial issued by the commissioner under this section may at any time within 30 days from the date of receipt of written notice of the denial contest the denial by serving a response on the commissioner. The commissioner shall set a date for a hearing not later than 60 days after service of the response, unless a later date is set with the consent of the denied applicant.

53B.11 RENEWAL OF LICENSE AND ANNUAL REPORT.

Subdivision 1.

Fee.

The annual fee for renewal of a license under this chapter is $2,500.

Subd. 2.

Report.

The renewal fee must be accompanied by a report, in a form prescribed by the commissioner. The form must be sent by the commissioner to each licensee no later than three months immediately preceding the date established by the commissioner for license renewal. The licensee must include in this annual renewal report:

(1) a copy of its most recent audited consolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity, and statement of changes in financial position, or, in the case of a licensee that is a wholly owned subsidiary of another corporation, the consolidated audited annual financial statement of the parent corporation may be filed in lieu of the licensee's audited annual financial statement;

(2) for the most recent quarter for which data are available prior to the date of the filing of the renewal application, but in no event more than 120 days prior to the renewal date, the licensee must provide the number of payment instruments sold by the licensee in the state, the dollar amount of those instruments, and the dollar amount of those instruments currently outstanding;

(3) any material changes to any of the information submitted by the licensee on its original application that have not previously been reported to the commissioner on any other report required to be filed under this chapter;

(4) a list of the licensee's permissible investments; and

(5) a list of the locations within this state at which business regulated by this chapter is being conducted by either the licensee or its authorized delegate.

Subd. 3.

License display.

A copy of the license issued by the commissioner to the licensee shall be prominently displayed in each location where money transmission services are offered.

53B.12 EXTRAORDINARY REPORTING REQUIREMENTS.

Within 15 days of the occurrence of any one of the events listed below, a licensee shall file a written report with the commissioner describing the event and its expected impact on the licensee's activities in the state:

(1) the filing for bankruptcy or reorganization by the licensee;

(2) the institution of revocation or suspension proceedings against the licensee by any state or governmental authority with regard to the licensee's money transmission activities;

(3) any felony indictment of the licensee or any of its key officers or directors related to money transmission activities; or

(4) any felony conviction of the licensee or any of its key officers or directors related to money transmission activities.

53B.13 CHANGES IN CONTROL OF A LICENSEE.

Any purchaser of ten percent or more of an ownership interest in a licensee must notify the commissioner at least 30 days in advance of the purchase and submit a completed license application form. The commissioner may revoke the license if the new ownership would have resulted in a denial of the initial license under this chapter. The commissioner may waive this notification requirement if, in the commissioner's discretion, the change in control does not pose any risk to the interests of the public.

53B.14 EXAMINATIONS.

The commissioner has under this chapter the same powers with respect to financial examinations that the commissioner has under section 46.04.

53B.15 MAINTENANCE OF RECORDS.

Subdivision 1.

Requirement.

Each licensee shall make, keep, and preserve the following books, accounts, and other records for a period of three years:

(1) a record or records of each payment instrument sold;

(2) a general ledger containing all assets, liability, capital, income, and expense accounts, which must be posted at least monthly;

(3) bank statements and bank reconciliation records;

(4) records of outstanding payment instruments;

(5) records of each payment instrument paid within the three-year period; and

(6) a list of the names and addresses of all of the licensee's authorized delegates.

Subd. 2.

Compliance.

(a) Any licensee selling money orders shall maintain a record of the date, amount, serial number, and the location of the sale for each money order sold in this state.

(b) Any licensee engaged in the business of receiving money for transmission or transmitting money shall maintain a record of the identity of the remitter, identity of the recipient, amount of the transmission, date of the transaction, date funds were transmitted, and the location from which the funds were remitted for each transaction initiated in this state.

(c) Maintenance of the documents required by this section in a photographic, electronic, or other similar form constitutes compliance with this section.

Subd. 3.

Location.

Records may be maintained at a location other than within this state if they are made accessible to the commissioner on seven days' written notice.

53B.16 CONFIDENTIALITY OF DATA SUBMITTED TO THE COMMISSIONER.

Data or other information obtained by the commissioner under this chapter, whether as a result of the license application or renewal process or examinations, is subject to chapter 13.

53B.17 SOLVENCY REQUIRED.

If the commissioner determines that a licensee is insolvent, that its capital is impaired, or that its condition is such as to render the continuance of its business hazardous to the public or to those having funds in its custody, the commissioner may apply to the district court for the county in which the main office is located, or for Ramsey County if the licensee does not have a main office in Minnesota, for appointment of a receiver to receive the assets of the licensee for the purpose of liquidating or rehabilitating its business and for such other relief as the interest of the public may require. The reasonable and necessary expenses of the receivership have priority over all other claims on the bond required by this chapter.

53B.18 PROHIBITED PRACTICES.

(a) No licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money caused by any of its authorized delegates in conducting activities on behalf of the licensee for whom it acts as an authorized delegate; or

(3) fail to comply with section 53B.27.

(b) A licensee must transmit all money received for transmission in accordance with the sender's instructions within five business days of the date the licensee receives the money from the sender unless:

(1) otherwise ordered by the sender;

(2) the licensee or its authorized delegate has a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur as a result of transmission; or

(3) the transmission is payment for goods or services.

(c) A licensee must conspicuously state in an agreement with a merchant to transmit money from a sender for goods or services:

(1) that the licensee has the authority to place a hold on or delay the transmission of a sender's money for more than five business days; and

(2) the general circumstances under which a transmittal may be subject to a hold or delay.

(d) A licensee that receives money from a sender for transmission to a merchant to pay for goods or services must transmit the money to the merchant within the time frame agreed upon in the merchant's agreement with the licensee.

(e) If a licensee fails to transmit money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender or recipient with the reason for the failure unless the response violates state or federal law.

(f) A licensee or its authorized delegate must refund to the customer all money received for transmittal within ten days of receipt of a request for a refund unless any of the following has occurred:

(1) the money has been transmitted and delivered to the person designated by the customer prior to receipt of the written request for a refund;

(2) instructions have been given committing an equivalent amount of money to the person designated by the customer prior to the receipt of a request for a refund; or

(3) the licensee is otherwise barred by law from making a refund.

53B.19 SUSPENSION OR REVOCATION OF LICENSES.

After notice and hearing, the commissioner may suspend or revoke a licensee's license if the commissioner finds that:

(1) any fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying the application;

(2) the licensee's net worth becomes inadequate and the licensee, after ten days' written notice from the commissioner, fails to take steps the commissioner considers necessary to remedy the deficiency;

(3) the licensee violates any material provision of this chapter or any rule or order validly adopted by the commissioner under authority of this chapter;

(4) the licensee is conducting its business in an unsafe or unsound manner;

(5) the licensee is insolvent;

(6) the licensee has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due;

(7) the licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy;

(8) the licensee refuses to permit the commissioner to make any examination authorized by this chapter; or

(9) the licensee fails to make any report required by this chapter.

53B.20 AUTHORIZED DELEGATE CONTRACTS.

Subdivision 1.

Contents of contract.

Licensees that conduct licensed activities through authorized delegates shall authorize each delegate to operate under an express written contract that, for contracts entered into after August 1, 2001, provide the following:

(1) that the licensee appoint the person as its delegate with authority to engage in money transmission on behalf of the licensee;

(2) that neither a licensee nor an authorized delegate authorize subdelegates without the written consent of the commissioner; and

(3) that licensees are subject to supervision and regulation by the commissioner and that as a part of that supervision and regulation, the commissioner may require the licensee to cancel an authorized delegate contract as a result of a violation of section 53B.21.

Subd. 2.

Termination of authorized delegate contract.

Upon termination of any authorized delegate contract, the licensee must notify the commissioner within a reasonable amount of time of the termination.

Subd. 3.

Exempt entities.

For purposes of this section, "licensee" includes exempt entities.

53B.21 AUTHORIZED DELEGATE CONDUCT.

(a) An authorized delegate shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner.

(b) An authorized delegate shall conduct its money transmission activities in a safe and sound manner.

(c) An authorized delegate shall cooperate with an investigation conducted by the commissioner under this chapter by providing any relevant information in its possession that the commissioner cannot reasonably obtain from another source.

(d) An authorized delegate is under a duty to act only as authorized under the contract with the licensee and any authorized delegate who exceeds its authority is subject to cancellation of its contract.

(e) All funds, less fees, received by an authorized delegate of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized delegate for transmission, constitute trust funds owned by and belonging to the licensee from the time the funds are received by the authorized delegate until the time when the funds or an equivalent amount are remitted by the authorized delegate to the licensee. If an authorized delegate commingles any funds with other funds or property owned or controlled by the authorized delegate, all commingled proceeds and other property must be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee.

(f) For purposes of this section, "licensee" includes exempt entities.

53B.22 LICENSEE LIABILITY.

A licensee's responsibility to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized delegate is limited to the amount of money tendered or the face amount of the payment instrument purchased.

53B.23 HEARINGS; PROCEDURES.

The provisions of the Minnesota Administrative Procedure Act, chapter 14, apply to any hearing under this chapter.

53B.24 ENFORCEMENT.

Section 45.027 applies to this chapter.

53B.25 RULE NOTICES.

At the time the commissioner files a notice of proposed adoption, amendment, or repeal of a rule adopted under this chapter, a copy of the notice must be sent by regular United States mail, postage prepaid, to all then-current licensees and applicants for licenses under this chapter.

53B.26 APPOINTMENT OF COMMISSIONER AS AGENT FOR SERVICE OF PROCESS.

Subdivision 1.

Consent and appointment.

Any licensee, authorized delegate, or other person who knowingly engages in business activities that are regulated under this chapter, with or without filing an application, is considered to have done both of the following:

(1) consented to the jurisdiction of the courts of this state for all actions arising under this chapter; and

(2) appointed the commissioner as the lawful agent for the purpose of accepting service of process in any action, suit, or proceeding that may arise under this chapter.

Subd. 2.

Service of process.

Service of process must be made in accordance with section 45.028, subdivision 2.

53B.27 MONEY TRANSMITTERS; COOPERATION REQUIRED IN COMBATTING FRAUD.

Subdivision 1.

Fraud prevention measures required.

Each money transmitter shall:

(1) provide a clear, concise, and conspicuous consumer fraud warning on all transmittal forms used by consumers to send money to an individual;

(2) provide consumer fraud prevention training for agents involved with transmittals;

(3) monitor agent activity relating to consumer transmittals; and

(4) establish a toll-free number for consumers to call to report fraud or suspected fraud.

Subd. 2.

Voluntary disqualification by customer.

A money transmitter that originates money transfers in this state must allow an individual to voluntarily disqualify the individual from sending or receiving money transfers. The disqualification lasts for one year, unless the individual requests that it be in effect for a period longer than one year. The individual may terminate the disqualification at any time upon written notice to the money transmitter.

Subd. 5.

High incidence of schemes to defraud.

The commissioner, after consulting with licensed money transmitters, may recommend a maximum transaction amount for money transmissions to countries associated with high incidence of schemes to defraud.

Subd. 6.

Notification of attempted receipt of money transfer at unexpected location.

Upon request of a sender of a money transmission, a money transmitter shall promptly notify the sender if the money transmitter receives notice that a person has attempted to receive the transfer at a physical location in a state or country other than the state or country specified by the sender. The money transmitter shall not authorize receipt of the transfer at any physical location not specified in writing by the sender at the time of the transmission unless the money transmitter has received authorization from the sender.

Subd. 7.

Verification of name and location of receipt of money transfer.

Upon request of a sender or the authorized delegate of a money transmission, a money transmitter shall provide the sender verification of the location where the transfer was received and the name of the person receiving the transfer. This subdivision only applies to transmissions received at a physical location.