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HF 4055

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/05/2020 06:18pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to commerce; making technical changes to various provisions governing
or administered by the Department of Commerce; amending Minnesota Statutes
2018, sections 47.60, by adding a subdivision; 48A.11; 53.03, by adding a
subdivision; 53A.03; 53B.07, by adding a subdivision; 53C.01, subdivision 12;
53C.02; 56.02; 58.02, subdivision 21; 58.06, by adding a subdivision; 58A.02,
subdivision 13; 58A.13; 59A.03, by adding a subdivision; 60A.07, subdivision
1d; 60A.131; 60A.16, subdivisions 1, 2; 82.68, subdivision 2; 82C.03, subdivision
2; 82C.06; 82C.15; 216C.437, subdivision 11; 332.30; 332.54, subdivision 4, by
adding a subdivision; 332.57, subdivision 2; 332A.03; 332B.04, by adding a
subdivision; repealing Minnesota Statutes 2018, sections 53B.27, subdivisions 3,
4; 60A.07, subdivision 1a; 72B.14.

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

Section 1.

Minnesota Statutes 2018, section 47.60, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 2.

Minnesota Statutes 2018, section 48A.11, is amended to read:


48A.11 NATIONAL BANKS AS FIDUCIARIES.

A national bank in this state granted a special permit to act in a fiduciary capacity by
either the Federal Reserve Board under subsection K of section 11 of the Federal Reserve
Act, as amended by the act of September 26, 1918, or the Office of the Comptroller of the
Currency under the provisions of United States Code, title 12, section 92a, may without
oath or security assign, transfer to, and deposit with the commissioner, the kinds and amounts
of authorized securities required by section 48A.03 of a bank or trust company in a city in
which the national bank is located. If the national bank has a capital of $500,000 or more,
it is not required to deposit these securities for more than the lesser ofnew text begin $1,000,000 ornew text end ten
percent of deleted text beginthis capital or $1,000,000deleted text endnew text begin the amount of assets the bank is acting in a fiduciary
capacity for at offices located in Minnesota
new text end. The securities so deposited must be held and
maintained as a guaranty fund for the national bank for the performance of its duties in this
fiduciary capacity.

When a national bank has complied with section 48A.03, no oath or security is required
of it to accept and perform the trust, as provided in section 48A.07, subdivision 4.

For purposes of this section, "bank" and "trust company" have the meanings given in
section 48A.09.

Sec. 3.

Minnesota Statutes 2018, section 53.03, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 4.

Minnesota Statutes 2018, section 53A.03, is amended to read:


53A.03 APPLICATION FOR LICENSE; FEES.

(a) An application for a license must be in writing, under oath, and in the form prescribed
and furnished by the commissioner and must contain the following:

(1) the full name and address (both of residence and place of business) of the applicant,
and if the applicant is a partnership or association, of every member, and the name and
business address if the applicant is a corporation;

(2) the county and municipality, with street and number, if any, of all currency exchange
locations operated by the applicant; and

(3) the applicant's occupation or profession, for the ten years immediately preceding the
application; present or previous connection with any other currency exchange in this or any
other state; whether the applicant has ever been convicted of any crime; and the nature of
the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership
or a corporation, the information specified in this paragraph must be supplied for each
partner and each officer and director of the corporation. If the applicant is a partnership or
a nonpublicly held corporation, the information specified in this paragraph must be required
of each partner and each officer, director, and stockholders owning in excess of ten percent
of the corporate stock of the corporation.

(b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review
of the initial application. Upon approval by the commissioner, an additional license fee of
$500 must be paid by the applicant as an annual license fee for the remainder of the calendar
year. An annual license fee of $500 is due for each subsequent calendar year of operation
upon submission of a license renewal application on or before September 1. Fees must be
deposited in the state treasury and credited to the general fund. Upon payment of the required
annual license fee, the commissioner shall issue a license for the year beginning January 1.

(c) The commissioner shall require the applicant to submit to a background investigation
conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of
the background investigation, the Bureau of Criminal Apprehension shall conduct criminal
history checks of Minnesota records and is authorized to exchange fingerprints with the
Federal Bureau of Investigation for the purpose of a criminal background check of the
national files. The cost of the investigation must be paid by the applicant.

new text begin (d) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end For purposes of this section, "applicant" includes an employee who exercises
management or policy control over the company, a director, an officer, a limited or general
partner, a manager, or a shareholder holding more than ten percent of the outstanding stock
of the corporation.

Sec. 5.

Minnesota Statutes 2018, section 53B.07, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 6.

Minnesota Statutes 2018, section 53C.01, subdivision 12, is amended to read:


Subd. 12.

Sales finance company.

"Sales finance company" means a person engaged,
in whole or in part, in the business of purchasing retail installment contracts new text beginentered into new text endin
this state from one or more retail sellers. The term includes a bank, trust company, or
industrial loan and thrift company, if so engaged. The term also includes a retail seller
engaged, in whole or in part, in the business of creating and holding retail installment
contracts. The term does not include the pledges of an aggregate number of the contracts
to secure a bona fide loan thereon.

Sec. 7.

Minnesota Statutes 2018, section 53C.02, is amended to read:


53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.

(a) No person shall engage in the business of a sales finance company in this state without
a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank,
trust company, savings bank, savings association, or credit union, whether state or federally
chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated
Loan Act authorized to do business in this state shall be required to obtain a license under
sections 53C.01 to 53C.14.

(b) The application for a license shall be in writing, under oath and in the form prescribed
by the commissioner. The application shall contain the name of the applicant; date of
incorporation, if incorporated; the address where the business is or is to be conducted and
similar information as to any branch office of the applicant; the name and resident address
of the owner or partners, or, if a corporation or association, of the directors, trustees and
principal officers, and other pertinent information the commissioner requires.

(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the
following year, or any part thereof shall be the sum of $250 for the principal place of business
of the licensee, and the sum of $125 for each branch of the licenseedeleted text begin, maintained in this statedeleted text end.
Any licensee who proves to the satisfaction of the commissioner, by affidavit or other proof
satisfactory to the commissioner, that during the 12 calendar months of the immediately
preceding fiscal year, for which the license has been paid that the licensee has not held retail
installment contracts exceeding $15,000 in amount, shall be entitled to a refund of that
portion of each license fee paid in excess of $25. The commissioner shall certify to the
commissioner of management and budget that the licensee is entitled to a refund, and
payment thereof shall be made by the commissioner of management and budget. The amount
necessary to pay for the refundment of the license fee is appropriated out of the general
fund. All license fees received by the commissioner under sections 53C.01 to 53C.14 shall
be deposited with the commissioner of management and budget.

(d) Each license shall specify the location of the office or branch and must be
conspicuously displayed there. In case the location be changed, the commissioner shall
endorse the change of location on the license.

(e) Upon the filing of such application, and the payment of the fee, the commissioner
shall issue a license to the applicant to engage in the business of a sales finance company
under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which
shall expire the last day of June next following the date of its issuance. The license shall
not be transferable or assignable. No licensee shall transact any business provided for by
sections 53C.01 to 53C.14 under any other name.

new text begin (f) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

Sec. 8.

Minnesota Statutes 2018, section 56.02, is amended to read:


56.02 APPLICATION FEE.

new text begin (a) new text endApplication for license shall be in writing, under oath, and in the form prescribed by
the commissioner, and contain the name and the address, both of the residence and place
of business, of the applicant and, if the applicant is a copartnership or association, of every
member thereof, and if a corporation, of each officer and director thereof; also the county
and municipality, with street and number, if any, where the business is to be conducted, and
such further information as the commissioner may require. The applicant at the time of
making application, shall pay to the commissioner the sum of $500 as a fee for investigating
the application, and the additional sum of $250 as an annual license fee for a period
terminating on the last day of the current calendar year. In addition to the annual license
fee, every licensee hereunder shall pay to the commissioner the actual costs of each
examination, as provided for in section 56.10. All moneys collected by the commissioner
under this chapter shall be turned over to the commissioner of management and budget and
credited by the commissioner of management and budget to the general fund of the state.

new text begin (b) new text endEvery applicant shall also prove, in form satisfactory to the commissioner, that the
applicant has available for the operation of the business at the location specified in the
application, liquid assets of at least $50,000.

new text begin (c) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

Sec. 9.

Minnesota Statutes 2018, section 58.02, subdivision 21, is amended to read:


Subd. 21.

Residential real deleted text beginproperty; residential realdeleted text end estate.

deleted text begin "Residential real property"
or "residential real estate" means real property improved or intended to be improved by a
structure designed principally for the occupancy of from one to four families, whether or
not the owner occupies the real property.
deleted text end new text begin "Residential real estate" means real property
located in Minnesota upon which a dwelling is constructed or is intended to be constructed,
whether or not the owner occupies the real property.
new text end

Sec. 10.

Minnesota Statutes 2018, section 58.06, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 11.

Minnesota Statutes 2018, section 58A.02, subdivision 13, is amended to read:


Subd. 13.

Residential mortgage loan.

"Residential mortgage loan" means a loan
primarily for personal, family, or household use that is secured by a mortgage, deed of trust,
or other equivalent consensual security interest on a dwelling, as defined in United States
Code, title 15, section 1602deleted text begin(v)deleted text endnew text begin(w)new text end, or residential real estate upon which a dwelling is
constructed or intended to be constructed.

Sec. 12.

Minnesota Statutes 2018, section 58A.13, is amended to read:


58A.13 SURETY BOND REQUIRED.

Subdivision 1.

Coverage, form, and rules.

(a) Each mortgage loan originator must be
covered by a surety bond meeting the requirements of deleted text beginthisdeleted text end sectionnew text begin 58.08new text end. In the event that
the mortgage loan originator is an employee or exclusive agent of a person subject to this
chapter, the surety bond of the person subject to this chapter can be used in lieu of the
mortgage loan originator's surety bond requirement.

(b) The surety bond shall provide coverage for each mortgage loan originator in an
amount as prescribed in subdivision 2.

(c) The surety bond must be in a form as prescribed by the commissioner.

Subd. 2.

Penal sum of surety bond.

The penal sum of the surety bond must be maintained
in deleted text beginandeleted text endnew text begin thenew text end amount that reflects the dollar amount of loans originated as determined deleted text beginby the
commissioner
deleted text endnew text begin under section 58.08, subdivision 1a, paragraph (c)new text end.

Subd. 3.

Action on bond.

When an action is commenced on a licensee'snew text begin residential
mortgage originator
new text end bondnew text begin,new text end the commissioner may require the filing of a new bond.

Subd. 4.

New bond.

Immediately upon recovery upon any action on the bondnew text begin,new text end the deleted text beginlicenseedeleted text endnew text begin
residential mortgage originator
new text end shall file a new bond.

Sec. 13.

Minnesota Statutes 2018, section 59A.03, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 14.

Minnesota Statutes 2018, section 60A.07, subdivision 1d, is amended to read:


Subd. 1d.

Certificate of incorporation; amendments.

The certificate of incorporation
of an insurance corporation organized and existing under the laws of this state may be
amended in the manner set forth in section 302A.135. deleted text beginAmendments must be filed with the
secretary of state in the manner set forth in section 302A.151, except the secretary of state
may not accept a certificate of filing unless the certificate also contains the endorsement of
the commissioner of commerce.
deleted text endnew text begin Amendments are effective upon the commissioner's approval.
new text end

Sec. 15.

Minnesota Statutes 2018, section 60A.131, is amended to read:


60A.131 OTHER BUSINESS AND INSURANCE INTERESTS, DISCLOSURE.

(a) deleted text beginIf requested by the commissioner, an insurance company authorized to do business
in this state shall disclose to the commissioner any changes in the principal management
and directors of the company from that listed on page one of the annual statement within
ten days of such change.
deleted text endnew text begin All domestic insurance companies must disclose to the commissioner
any changes in principal management or directors of the company within ten days of the
date a change is made. Biographical information must be provided for any new officer or
director on the applicable forms required by the commissioner. Foreign insurers are not
required to provide notification under this paragraph unless specifically requested.
new text end

(b) Every insurance company authorized to do business in this state shall notify the
commissioner within ten days after receipt of notice of any acquisition by any person,
association or corporation of stock or other equity security in said insurer where such
transaction, directly or indirectly, either involves five percent or more of any class of any
equity security of said insurer, or such acquisition results in ownership of five percent or
more of any equity security of said insurer.

(c) All principal management and directors of the company as listed on page one of its
annual statement, and any person, association or corporation or any person or persons
managing such company under a management contract, who are directly or indirectly the
beneficial owners of more than five percent of any class of any equity security of a stock
insurer or guaranty fund of a mutual insurer, shall disclose all other interests in excess of
five percent which they may have in insurance agencies, other insurance companies, premium
finance companies and any other companies whose principal business relates directly to the
writing of insurance or the handling of claims, within 30 days following May 21, 1967.
Any such interests acquired after May 21, 1967, shall be reported to the commissioner
within 30 days.

Sec. 16.

Minnesota Statutes 2018, section 60A.16, subdivision 1, is amended to read:


Subdivision 1.

Scope.

(1) Domestic insurance corporations. Any two or more domestic
insurance corporations, formed for any of the purposes for which stock, mutual, or stock
and mutual insurance corporations, or reciprocal or interinsurance contract exchanges might
be formed under the laws of this state, may be

(a) merged into one of such domestic insurance corporations, or

(b) consolidated into a new insurance corporation to be formed under the laws of this
state.

(2) Domestic and foreign insurance corporations. Any such domestic insurance
corporations and any foreign insurance corporations formed to carry on any insurance
business for the conduct of which an insurance corporation might be organized under the
laws of this state, may be

(a) merged into one of such domestic insurance corporations, or

(b) merged into one of such foreign insurance corporations, or

(c) deleted text beginconsolidated into a new insurance corporation to be formed under the laws of this
state, or
deleted text end

deleted text begin (d)deleted text end consolidated into a new insurance corporation to be formed under the laws of the
government under which one of such foreign insurance corporations was formed, provided
that each of such foreign insurance corporations is authorized by the laws of the government
under which it was formed to effect such merger or consolidation.

Sec. 17.

Minnesota Statutes 2018, section 60A.16, subdivision 2, is amended to read:


Subd. 2.

Procedure to be followed.

(1) Plan of merger. The merger or consolidation
of insurance corporations can be effected only as a result of a plan of merger adopted,
approved, and filed as follows:

(a) A resolution containing the plan of merger shall be approved by the affirmative vote
of a majority of the directors of the board of each constituent corporation. The plan of merger
shall prescribe the terms and conditions of merger or consolidation, and the mode of carrying
the same into effect, with such other details and provisions as are deemed necessary. In the
case of merging or consolidating stock insurance corporations or stock and mutual insurance
corporations, such plan of merger may prescribe that stock of one or more of such
corporations shall be converted, in whole or in part, into stock or other securities of a
corporation which is not a merging or consolidating corporation or into cash.

(b) The plan of merger, or a summary of the plan approved by the commissioner, shall
be submitted to the respective shareholders or members, as the case may be, of each
constituent corporation, for consideration at a regular meeting or at a special meeting duly
called for the purpose of considering and acting upon the plan. Written notice of the meeting,
which shall state that the purpose of the meeting is to consider the proposed plan of merger,
shall be given to each shareholder or member entitled to vote upon the plan of merger not
less than 30 nor more than 60 days before the meeting. The plan of merger must be approved
by the affirmative vote of the holders of two-thirds of the voting power of the shareholders
or members present or represented at the meeting of each constituent corporation; provided,
however, that in the case of a merger, except one in which any shares of the surviving
insurance corporation are to be converted into shares or other securities of another corporation
or into cash, the agreement need not be submitted to the shareholders or members of that
one of the insurance corporations into which it has been agreed the others shall be merged.
Upon receiving the approval of the shareholders or members of each constituent corporation,
articles of merger shall be prepared that contain the plan of merger and a statement that the
plan has been approved by each corporation under this section.

(c) The articles of mergernew text begin and plan of mergernew text end shall be delivered to the commissioner of
commerce, who, if the plan of merger is reasonable and if the provisions thereof providing
for any transfer of assets and assumption of liabilities are fair and equitable to the claimants
and policyholders, shall deleted text beginplace a certificate of approval on the articles ofdeleted text endnew text begin issue an order
approving the
new text end merger deleted text beginand shall file the articles in the commissioner's office, anddeleted text endnew text begin.new text end Copies of
the articlesnew text begin of mergernew text end, certified by the commissioner of commerce, shall be deleted text beginfiled for record
in the Office of the Secretary of State and
deleted text end delivered to the surviving corporation or its legal
representative.

(2) Articles of incorporation of new company. (a) If the plan of merger is for a
consolidation into a new insurance corporation to be formed under any law or laws of this
state, articles of incorporation for such new insurance corporation shall be prepared and
delivered to the commissioner of commerce together with the articles of merger as provided
in clause (1) hereof.

(b) Such articles shall be prepared, executed, approved, filed and recorded in the form
and manner prescribed in, or applicable to, the particular law or laws under which the new
insurance corporation is to be formed.

(3) Abandonment. A proposed merger or consolidation may be abandoned at any time
prior to approval by the commissioner under the provision for abandonment, if any, set forth
in the plan of merger.

(4) Mutual insurance holding companies. In the case of a merger of two mutual
insurance holding companies under section 66A.40, subdivision 2, paragraph (c), the
procedures set forth in subdivisions 1, 2, 3, 4, and 6 shall apply, subject to the following:

(a) the plan of merger must be fair and reasonable to the members of each constituent
corporation;

(b) no member of either constituent corporation on the effective date of the merger shall
lose membership solely on account of the merger;

(c) membership and voting rights in each respective constituent corporation for purposes
of the meeting of the members held to consider the plan of merger shall be determined in
accordance with the articles and bylaws of that constituent corporation as of a record date
established in the plan of merger; and

(d) the commissioner may require changes to the plan or require certain undertakings
from the surviving corporation to assure compliance with this clause.

Sec. 18.

Minnesota Statutes 2018, section 82.68, subdivision 2, is amended to read:


Subd. 2.

Financial interests disclosure; licensee.

(a) Before the negotiation or
consummation of any transaction, a licensee shall affirmatively disclose to the owner of
real property that the licensee is a real estate broker or agent salesperson, and in what capacity
the licensee is acting, if the licensee directly, or indirectly through a third party, purchases
for himself or herself or acquires, or intends to acquire, any interest in, or any option to
purchase, the owner's property.

(b) When a principal in the transaction is a licensee or a relative or business associate
of the licensee, that fact must be disclosed in writingnew text begin before negotiating or consummating
any transaction
new text end.

Sec. 19.

Minnesota Statutes 2018, section 82C.03, subdivision 2, is amended to read:


Subd. 2.

Owner requirements.

(a) An appraisal management company applying to the
commissioner for a license in this state deleted text beginmaydeleted text endnew text begin mustnew text end not be deleted text beginmore than ten percentdeleted text end owned by
any person that is currently subject to any cease and desist order or injunctive order that
would preclude involvement with an appraisal management company, or that has ever:

(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification,
registration or license, or an appraisal management company license;

(2) been the subject of a final order revoking or denying an appraiser certification,
registration or license, or an appraisal management company license; or

(3) a final order barring involvement in any industry or profession issued by this or
another state or federal regulatory agency.

(b) A person that owns more than ten percent of an appraisal management company in
this state shall:

(1) be of good moral character, as determined by the commissioner;

(2) submit to a background investigation, as determined by the commissioner; and

(3) certify to the commissioner that the person has never been the subject of an order of
certificate, registration or license suspension, revocation, or denial; cease and desist order;
injunctive order; or order barring involvement in an industry or profession issued by this
or another state or federal regulatory agency.

Sec. 20.

Minnesota Statutes 2018, section 82C.06, is amended to read:


82C.06 EXEMPTIONS.

This chapter does not apply to:

(1) a person that exclusively employs appraisers on an employer and employee basis
for the performance of appraisals, and:

(i) the employer is responsible for ensuring that the appraisals are performed by
employees in accordance with USPAP; and

(ii) the employer accepts all liability associated with the performance of the appraisal
by the employee;

(2) a department or unit within a financial institution that is subject to direct regulation
by an agency of the United States government, or to regulation by an agency of this state,
that receives a request for the performance of an appraisal from one employee of the financial
institution, and another employee of the same financial institution assigns the request for
the appraisal to an appraiser that is an independent contractor to the institution, except that
an appraisal management company that is a wholly owned subsidiary of a financial institution
deleted text begin shall not bedeleted text endnew text begin isnew text end considered a department or unit within a financial institution to which the
provisions of this chapter do not apply;

(3) a person that enters into an agreement, whether written or otherwise, with an appraiser
for the performance of an appraisal, and upon the completion of the appraisal, the report of
the appraiser performing the appraisal is signed by both the appraiser who completed the
appraisal and the appraiser who requested the completion of the appraisal, except that an
appraisal management company may not avoid the requirements of this chapter by requiring
that an employee of the appraisal management company that is an appraiser to sign an
appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal
management company; or

(4) any governmental agency performing appraisals on behalf of that level of government
or any agency performing ad valorem tax appraisals for county assessors.

Sec. 21.

Minnesota Statutes 2018, section 82C.15, is amended to read:


82C.15 ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL
MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER.

deleted text begin Except within the first 30 days after an independent appraiser is first added to the
appraiser panel of an appraisal management company,
deleted text end An appraisal management company
may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests
for real estate appraisal services to an independent appraiser without:

(1) notifying the appraiser in writing of the reasons why the appraiser is being removed
from the appraiser panel or is not receiving appraisal requests from the appraisal management
company;

(2) if the appraiser is being removed from the panel for illegal conduct, having determined
that the appraiser has violated USPAP, or chapter 82B, taking into account the nature of
the alleged conduct or violation; and

(3) providing an opportunity for the appraiser to respond and appeal the notification of
the appraisal management company.

Sec. 22.

Minnesota Statutes 2018, section 216C.437, subdivision 11, is amended to read:


Subd. 11.

Powers of the commissioner.

(a) The commissioner has under this section
the same powers the commissioner has under section 45.027, including the authority to
impose a civil penalty not to exceed $10,000 per violation.

(b) The commissioner may condition or refuse to renew a license for any of the reasons
the commissioner may deny, suspend, or revoke a license.

(c) The commissioner may order restitution against persons subject to this section for
violations of this section.

(d) The commissioner may issue orders or directives under this section as follows:

(1) order or direct persons subject to this chapter to cease and desist from conducting
business, including immediate temporary orders to cease and desist;

(2) order or direct persons subject to this chapter to cease any harmful activities or
violations of this chapter, including immediate temporary orders to cease and desist;

(3) enter immediate temporary orders to cease business under a license if the
commissioner determines that the license was erroneously granted or the licensee is currently
in violation of this chapter; and

(4) order or direct other affirmative action the commissioner considers necessary.

(e) Each violation or failure to comply with any directive or order of the commissioner
is a separate and distinct violation or failure.

new text begin (f) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

Sec. 23.

Minnesota Statutes 2018, section 332.30, is amended to read:


332.30 ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND
REQUIREMENTS.

(a) Before beginning business in this state, an accelerated mortgage payment provider,
as defined in section 332A.02, subdivision 8, clause (9), shall submit to the commissioner
of commerce an authorization fee of $250 and either:

(1) a surety bond in which the accelerated mortgage payment provider is the obligor, in
an amount determined by the commissioner; or

(2) if the commissioner agrees to accept it, a deposit:

(i) in cash in an amount equivalent to the bond amount; or

(ii) of authorized securities, as defined in section 50.14, with an aggregate market value
equal to the bond amount. The cash or securities must be deposited with the commissioner
of management and budget.

(b) The amount of the bond required by the commissioner shall vary with the amount
of Minnesota client funds held or to be held by the obligor. For new businesses, the bond
must be no less than $100,000, except as provided in section 332.301. The commissioner
may increase the required bond amount upon 30 days' notice to the accelerated mortgage
payment provider.

(c) If a bond is submitted, it must name as surety an insurance company authorized to
transact fidelity and surety business in this state. The bond must run to the state of Minnesota
for the use of the state and of any person who may have a claim against the obligor arising
out of the obligor's activities as an accelerated mortgage payment provider. The bond must
be conditioned that the obligor will not commit any fraudulent act and will faithfully conform
to and abide by the provisions of accelerated mortgage payment agreements with Minnesota
residents.

new text begin (d) new text endIf an accelerated mortgage payment provider has failed to account to a mortgagor
or distribute funds to the mortgagee as required by an accelerated mortgage payment
agreement, the mortgagor or the mortgagor's legal representative or receiver or the
commissioner shall have, in addition to any other legal remedies, a right of action in the
name of the debtor on the bond or the security given pursuant to this section.

new text begin (e) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

Sec. 24.

Minnesota Statutes 2018, section 332.54, subdivision 4, is amended to read:


Subd. 4.

Update of information.

The credit services organization must update the
registration statement required under this section not later than deleted text begin90deleted text endnew text begin 30new text end days after the date
from which a change in the information required in the statement occurs.

Sec. 25.

Minnesota Statutes 2018, section 332.54, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 26.

Minnesota Statutes 2018, section 332.57, subdivision 2, is amended to read:


Subd. 2.

Contents.

The disclosure statement required under subdivision 1 must be printed
in boldface and in at least 10-point type and must include the following statement:

"CONSUMER CREDIT FILE RIGHTS UNDER MINNESOTA AND FEDERAL LAW

deleted text begin You have a right to obtain a copy of your credit report from a credit bureau. You may
be charged a reasonable fee. There is no fee, however, if you have been turned down for
credit, employment, insurance, or a rental dwelling because of information in your credit
report within the preceding 30 days. The credit bureau must provide someone to help you
interpret the information in your credit file.
deleted text end

deleted text begin You have a right to dispute inaccurate information by contacting the credit bureau
directly. However, neither you nor any "credit repair" company or credit services organization
has the right to have accurate, current, and verifiable information removed from your credit
bureau report. Under the federal Fair Credit Reporting Act, the credit bureau must remove
accurate, negative information from your report only if it is over seven years old. Bankruptcy
can be reported for ten years.
deleted text end

deleted text begin You have a right to sue a credit repair company that violates Minnesota's Credit Services
Organization Act. This law prohibits deceptive practices by credit repair companies and
gives you a right to cancel your contract for any reason within five working days from the
date you signed it.
deleted text end

deleted text begin Credit bureaus are required to follow reasonable procedures to ensure that creditors
report information accurately. However, mistakes may occur.
deleted text end

deleted text begin You may, on your own, notify a credit bureau in writing that you dispute the accuracy
of information in your credit file. The credit bureau must then reinvestigate and modify or
remove inaccurate information. The credit bureau may not charge any fee for this service.
Any pertinent information and copies of any documents you have concerning an error should
be given to the credit bureau.
deleted text end

deleted text begin If reinvestigation does not resolve the dispute to your satisfaction, you may send a brief
statement to the credit bureau to keep in your file, explaining why you think the record is
inaccurate. The credit bureau must include your statement about disputed information with
any reports it issues about you."
deleted text end

new text begin You have a right to dispute inaccurate information in your credit report by contacting
the credit bureau directly. However, neither you nor any 'credit repair' company or credit
repair organization has the right to have accurate, current, and verifiable information removed
from your credit report. The credit bureau must remove accurate, negative information from
your report only if it is over seven years old. Bankruptcy information can be reported for
ten years.
new text end

new text begin You have a right to obtain a copy of your credit report from a credit bureau. You may
be charged a reasonable fee. There is no fee, however, if you have been turned down for
credit, employment, insurance, or a rental dwelling because of information in your credit
report within the preceding 60 days. The credit bureau must provide assistance to help you
interpret the information in your credit file. You are entitled to receive a free copy of your
credit report if you are unemployed and intend to apply for employment in the next 60 days,
if you are a recipient of public welfare assistance, or if you have reason to believe that there
is inaccurate information in your credit report due to fraud.
new text end

new text begin You have a right to sue a credit repair ORGANIZATION that violates the Credit Repair
Organization Act. This law prohibits deceptive practices by credit repair organizations.
new text end

new text begin You have the right to cancel your contract with any credit repair organization for any
reason within three business days of the date you signed it.
new text end

new text begin Credit bureaus are required to follow reasonable procedures to ensure that the information
they report is accurate. However, mistakes may occur.
new text end

new text begin You may, on your own, notify a credit bureau in writing that you dispute the accuracy
of information in your credit file. The credit bureau must then reinvestigate and modify or
remove inaccurate or incomplete information. The credit bureau is prohibited from charging
any fee for this service. Any pertinent information and copies of all documents you have
concerning an error should be given to the credit bureau.
new text end

new text begin If the credit bureau's reinvestigation does not resolve the dispute to your satisfaction,
you may send a brief statement to the credit bureau, to be kept in your file, explaining why
you think the record is inaccurate. The credit bureau must include a summary of your
statement about disputed information with any report it issues about you.
new text end

Sec. 27.

Minnesota Statutes 2018, section 332A.03, is amended to read:


332A.03 REQUIREMENT OF REGISTRATION.

new text begin (a) new text endOn or after August 1, 2007, it is unlawful for any person, whether or not located in
this state, to operate as a debt management services provider or provide debt management
services, including but not limited to offering, advertising, or executing or causing to be
executed any debt management services or debt management services agreement, except
as authorized by law without first becoming registered as provided in this chapter. A person
who possesses a valid license as a debt prorater that was issued by the commissioner before
August 1, 2007, is deemed to be registered as a debt management services provider until
the date the debt prorater license expires, at which time the licensee must obtain a renewal
as a debt management services provider in compliance with this chapter. Debt proraters
who were not required to be licensed as debt proraters before August 1, 2007, may continue
to provide debt management services without complying with this chapter to those debtors
who entered into a contract to participate in a debt management plan before August 1, 2007,
except that the debt prorater must comply with section 332A.13, subdivision 2.

new text begin (b) Section 58A.04, subdivisions 2 and 3, apply to this section.
new text end

Sec. 28.

Minnesota Statutes 2018, section 332B.04, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Records and fees; maintenance and processing. new text end

new text begin Section 58A.04, subdivisions
2 and 3, apply to this section.
new text end

Sec. 29. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 53B.27, subdivisions 3 and 4; 60A.07, subdivision
1a; and 72B.14,
new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H4055-1

53B.27 MONEY TRANSMITTERS; COOPERATION REQUIRED IN COMBATTING FRAUD.

Subd. 3.

No transmit list.

(a) The commissioner shall create and maintain an electronic list of individuals for whom money transmitters may not make money transmissions. The commissioner may contract with a third-party vendor to create and maintain the list. The electronic list must include sufficient identifying information about individuals on the list to allow for money transmitters to match names on the "No Transmit List" with the names of individuals seeking to utilize the money transmitter's services to make money transmissions.

(b) The "No Transmit List" shall be populated in the following ways:

(1) an individual may request that the commissioner put the individual's name on the "No Transmit List;"

(2) persons with the legal authority to act on behalf of an individual may request that the commissioner put the individual's name on the "No Transmit List;"

(3) money transmitters shall request that the commissioner put the names of individuals on the "No Transmit List" that the money transmitter, their employees, their authorized delegates, or their authorized delegates' employees have detected are victims of a scheme to defraud and the names of individuals they have detected are participants in a scheme to defraud individuals residing in Minnesota;

(4) state and local law enforcement agencies and departments may request that the commissioner put the names of individuals residing in Minnesota who have been victims of a scheme to defraud on the "No Transmit List"; and

(5) money transmitters shall request that the commissioner put the names of individuals on the "No Transmit List" who have made a request directly to the money transmitter to be prohibited from making or receiving money transmissions.

(c) An individual on the "No Transmit List" shall remain on the list for a minimum of one year. After the expiration of one year, the individual may at any time request that his or her name be removed from the "No Transmit List," otherwise the name will remain on the list. An individual whose name was put on the "No Transmit List" by a person authorized to act on an individual's behalf shall remain on the list for a minimum of one year. After the expiration of one year, the person authorized to act on the individual's behalf may at any time request that the commissioner remove the individual's name from the "No Transmit List," otherwise the name will remain on the list.

(d) An individual who requests that the individual's name be put on the "No Transmit List" may indicate at the time of the request that the name shall not be removed from the "No Transmit List" unless both the individual and at least one of two designated individuals requests the individual's name be removed from the list.

(e) The commissioner shall create request forms and establish procedures for submission of requests under this subdivision. The commissioner's forms and procedures shall include necessary requirements for verifying the identity and authority of individuals submitting requests. All requests must be submitted to the commissioner on the forms created by the commissioner and in accordance with the procedures established by the commissioner.

(f) Except as otherwise provided in this paragraph, data on individuals in the "No Transmit List" and in requests to have names put on or removed from the list are private data on individuals as defined in section 13.02, subdivision 12. The name of an individual on the "No Transmit List" may be provided to the individual or a person authorized to act on the individual's behalf and shall be provided to a money transmitter through a matching process for the purpose of determining whether it may initiate a money transmission. Data classified under this paragraph may be disclosed to requesting law enforcement agencies for law enforcement purposes or to other government agencies for purposes related to the regulation of money transmissions.

Subd. 4.

Suspicious activity report.

Each time a money transmitter requests that the commissioner put the name of an individual on the "No Transmit List" pursuant to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a suspicious activity report pursuant to the federal Bank Secrecy Act.

60A.07 AUTHORIZATION AND REQUIREMENTS.

Subd. 1a.

Filing.

The certificate of an insurance corporation must be filed for record with the secretary of state. If the secretary of state finds that it conforms to law and that the required fee has been paid, the secretary of state must record it and certify that fact on it. The secretary of state may not accept a certificate for filing unless the certificate also contains the endorsement of the commissioner of commerce.

72B.14 VIOLATIONS.

A person who violates sections 72B.01 to 72B.14, or the terms of any license or permit under sections 72B.01 to 72B.14, or any lawful order of the commissioner in accordance with sections 72B.01 to 72B.14, shall be subject to a fine imposed by the commissioner, not in excess of $500, which may be imposed in addition to the penalties prescribed in the provisions dealing with the suspension or revocation of licenses or permits.