SF 2078

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/24/2017 08:36am

A bill for an act
relating to commerce; appropriating money for the Department of Commerce;
making policy and technical changes; modifying fees; amending Minnesota Statutes
2016, sections 45.0135, subdivision 6; 46.131, subdivision 7, by adding a
subdivision; 53B.11, subdivision 1; 58.10, subdivision 1; 65B.84, subdivision 1;
80A.65, subdivision 2; 239.101, subdivision 2; 297I.11, subdivision 2; repealing
Minnesota Statutes 2016, section 46.131, subdivision 5.

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

ARTICLE 1

APPROPRIATIONS

Section 1. COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS.

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 "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. DEPARTMENT OF COMMERCE

Subdivision 1. Total Appropriation

$

22,339,000

$

22,339,000

Appropriations by Fund
	2018	2019
General	17,123,000	17,123,000
Special Revenue	4,465,000	4,465,000
Workers' Compensation	751,000	751,000

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

Subd. 2. Financial Institutions

4,885,000

4,885,000

$4,465,000 in fiscal year 2018 and $4,465,000
in fiscal year 2019 are appropriated from the
financial institutions account in Minnesota
Statutes, section 46.131, subdivision 11.
$420,000 in fiscal year 2018 and $420,000 in
fiscal year 2019 are appropriated from the
general fund.

Subd. 3. Administrative Services

7,386,000

7,386,000

$100,000 each year is for the support of
broadband development.

Subd. 4. Enforcement

Appropriations by Fund
General	4,901,000	4,901,000
Workers' Compensation	198,000	198,000

Subd. 5. Insurance

Appropriations by Fund
General	4,416,000	4,416,000
Workers' Compensation	553,000	553,000

Subd. 6. Commerce Fraud Bureau

The revenue transferred in Minnesota Statutes,
section 297I.11, subdivision 2, to the insurance
fraud prevention account must be used in part
for compensation for two new employees in
the Commerce Fraud Bureau to perform
analytical duties. The new employees may not
be peace officers.

ARTICLE 2

COMMERCE

Section 1.

Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:

Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account
is created in the state treasury. Money received from assessments under subdivision 7 and
transferred from the automobile theft prevention account in section sections 65B.84,
subdivision 1, and 297I.11, subdivision 2, is deposited in the account. Money in this fund
is appropriated to the commissioner of commerce for the purposes specified in this section
and sections 60A.951 to 60A.956.

Sec. 2.

Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:

Subd. 7.

Fiscal year assessments.

Such assessments shall be levied on July 1, 1965,
and at prior to the beginning of each fiscal period beginning July 1 and ending June 30
thereafter, and shall be based on the total estimated expense as herein referred to during
such period. Assessment revenue will be remitted to the commissioner for deposit in the
financial institutions account on or before July 1 of each year.

Sec. 3.

Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to
read:

Subd. 11.

Financial institutions account; appropriation.

(a) The financial institutions
account is created as a separate account in the special revenue fund. The account consists
of funds received from assessments under subdivision 7 and examination fees under
subdivision 8. Earnings, including interest, dividends, and any other earnings arising from
account assets, must be credited to the account.

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

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 4.

Minnesota Statutes 2016, section 53B.11, subdivision 1, is amended to read:

Subdivision 1.

Fee.

The annual fee for renewal of a license under this chapter is $2,500
$3,030.

Sec. 5.

Minnesota Statutes 2016, section 58.10, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid to the commissioner:

(1) for a residential mortgage originator license, $1,000, $50 of which is credited to the
consumer education account in the special revenue fund;

(2) for a renewal license, $500 $780, $50 of which is credited to the consumer education
account in the special revenue fund;

(3) for a residential mortgage servicer's license, $500;

(4) for a renewal license, $250; and

(5) for a certificate of exemption, $100.

Sec. 6.

Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:

Subdivision 1.

Program described; commissioner's duties; appropriation.

(a) The
commissioner of commerce shall:

(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws, and
provide a forum for identification of critical problems for those persons dealing with
automobile theft;

(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect to
automobile theft enforcement;

(3) annually audit the plans and programs that have been funded in whole or in part to
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need of
further financial support from the fund;

(4) develop a plan of operation including:

(i) an assessment of the scope of the problem of automobile theft, including areas of the
state where the problem is greatest;

(ii) an analysis of various methods of combating the problem of automobile theft;

(iii) a plan for providing financial support to combat automobile theft;

(iv) a plan for eliminating car hijacking; and

(v) an estimate of the funds required to implement the plan; and

(5) distribute money, in consultation with the commissioner of public safety, pursuant
to subdivision 3 from the automobile theft prevention special revenue account for automobile
theft prevention activities, including:

(i) paying the administrative costs of the program;

(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;

(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;

(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;

(v) providing financial support to judicial agencies for programs designed to reduce the
incidence of automobile theft;

(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and to
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely to occur;
and

(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and inspections
staff, and members of the judiciary.

(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to the
automobile theft prevention special revenue account each year, less the transfer of $1,300,000
each year to the general fund insurance fraud prevention account described in section 297I.11,
subdivision 2.

(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
in the auto theft prevention account to the insurance fraud prevention account under section
45.0135, subdivision 6.

Sec. 7.

Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:

Subd. 2.

Registration application and renewal filing fee.

Every applicant for an initial
or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $50 $60
in the case of an agent, and $100 in the case of an investment adviser. When an application
is denied or withdrawn, the filing fee shall be retained. A registered agent who has terminated
employment with one broker-dealer shall, before beginning employment with another
broker-dealer, pay a transfer fee of $25.

Sec. 8.

Minnesota Statutes 2016, section 239.101, subdivision 2, is amended to read:

Subd. 2.

Weights and measures fees.

The director shall charge a fee to the owner for
inspecting and testing weights and measures, providing metrology services and consultation,
and providing petroleum quality assurance tests at the request of a licensed distributor.
Money collected by the director must be paid into the state treasury and as follows: (1) ten
percent of metrology fees and ten percent of all other fees must be credited to the petroleum
inspection fee account; and (2) the remainder must be credited to the state general fund.

Sec. 9.

Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:

Subd. 2.

Automobile theft prevention account.

A special revenue account in the state
treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.
Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess
of $1,300,000 each year may be used only for the automobile theft prevention program
described in section 65B.84.

Sec. 10. REPEALER.

Minnesota Statutes 2016, section 46.131, subdivision 5, is repealed.

APPENDIX

Repealed Minnesota Statutes: S2078-1

46.131 ASSESSMENTS AND FEES FOR FINANCIAL INSTITUTIONS.

Subd. 5.

Application and adjustment of fees.

If the income from the fees provided for herein during any fiscal year shall be more than 103 percent of such expenditures for that year, any excess above such sum of 103 percent may be carried over to succeeding years in order to cover any deficit below 103 percent which may occur in such succeeding years. If the income from the fees provided for herein during any fiscal year shall produce less than the expenditures for that year, the Department of Commerce in adjusting its schedule of fees for use in the next fiscal year shall fix the fees so as to produce income in the amount of the expenditures for the latter year plus the amount of the difference between the expenditures for the first year referred to herein and the total income from such fees during the year and plus three percent of the total expenditures for both the latter and the first year referred to herein.