Minnesota Legislature
SF 2876
as introduced - 89th Legislature (2015 - 2016) Posted on 03/29/2016 10:12am
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18
1.19 1.20 1.21 1.22 1.23
2.1 2.2 2.3 2.4 2.5
2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25
2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2
3.3 3.4 3.5 3.6
3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15
3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1
4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15
4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23
4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 5.1
5.2 5.3 5.4 5.5
A bill for an act
relating to commerce; regulating applicants and licensees; amending Minnesota
Statutes 2014, sections 53B.05, subdivision 1, by adding a subdivision; 53B.07,
by adding a subdivision; 53B.08, subdivision 1; 53B.10, subdivision 1; 53B.11,
subdivision 3; 53B.13; 58.04, subdivision 1; 58.11, subdivision 2; 58A.07,
subdivision 1; 58A.09, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 53B.05, subdivision 1, is amended to read:
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 deleted text begin $25,000deleted text end new text begin $100,000new text end . 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 deleted text begin $50,000deleted text end new text begin $200,000new text end . 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 deleted text begin $100,000deleted text end new text begin $400,000new text end and
an additional net worth of deleted text begin $50,000deleted text end new text begin $200,000new text end for each location or authorized delegate
located in the state in excess of seven, to a maximum of deleted text begin $500,000deleted text end new text begin $2,000,000new text end . Net worth
shall be calculated in accordance with generally accepted accounting principles.
Sec. 2.
Minnesota Statutes 2014, section 53B.05, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Physical presence. new text end
new text begin
A licensee shall at all times maintain a physical
presence in the United States, which at a minimum means having a mailing address and a
registered agent in the United States.
new text end
Sec. 3.
Minnesota Statutes 2014, section 53B.07, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Change of circumstances. new text end
new text begin
The money transmitter shall promptly notify
the commissioner of every material change in the facts or in the documents on which the
application is based within 30 days of the change.
new text end
Sec. 4.
Minnesota Statutes 2014, section 53B.08, subdivision 1, is amended to read:
Subdivision 1.
Requirement.
new text begin (a) new text end 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 deleted text begin $25,000deleted text end new text begin $100,000new text end . 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 deleted text begin $50,000deleted text end new text begin $200,000new text end . 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 deleted text begin $50,000deleted text end new text begin $400,000new text end for each location
over six, up to a maximum of deleted text begin $250,000deleted text end new text begin $2,000,000new text end . 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.
new text begin
(b) The dollar amounts required in paragraph (a) may be increased by the
commissioner based on the risk profile of the applicant.
new text end
Sec. 5.
Minnesota Statutes 2014, section 53B.10, subdivision 1, is amended to read:
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 deleted text begin adeleted text end new text begin an annually renewablenew text end term of one yearnew text begin , ending on December
31 of the calendar year the license is issuednew text end . If these requirements have not been met, the
commissioner shall deny the application in writing, setting forth the reasons for the denial.
Sec. 6.
Minnesota Statutes 2014, section 53B.11, subdivision 3, is amended to read:
Subd. 3.
License display.
A copy of the license issued by the commissioner to the
licensee shall be prominently displayed in each locationnew text begin , including Internet locations,
new text end where money transmission services are offered.
Sec. 7.
Minnesota Statutes 2014, section 53B.13, is amended to read:
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 new text begin on a new text end formnew text begin prescribed by the commissionernew text end . 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.
Sec. 8.
Minnesota Statutes 2014, section 58.04, subdivision 1, is amended to read:
Subdivision 1.
Residential mortgage originator licensing requirements.
(a)
No person shall act as a residential mortgage originator, or make residential mortgage
loans without first obtaining a license from the commissioner according to the licensing
procedures provided in this chapter.
(b) A licensee must be either a partnership, limited liability partnership, association,
limited liability company, corporation, or other form of business organization, and must
have and maintain a surety bond in the amounts prescribed under section 58.08.
(c) The following persons are exempt from the residential mortgage originator
licensing requirements:
(1) a person who is not in the business of making residential mortgage loans and who
makes no more than three such loans, with its own funds, during any 12-month period;
(2) a financial institution as defined in section 58.02, subdivision 10;
(3) an agency of the federal government, or of a state or municipal government;
(4) an employee or employer pension plan making loans only to its participants;
(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of
a specific order issued by a court of competent jurisdiction; deleted text begin or
deleted text end
new text begin
(6) a company that is sponsoring independent loan processors or underwriters; or
new text end
deleted text begin (6)deleted text end new text begin (7)new text end a person exempted by order of the commissioner.
Sec. 9.
Minnesota Statutes 2014, section 58.11, subdivision 2, is amended to read:
Subd. 2.
Timely renewal.
(a) A person whose application is properly and timely
filed who has not received notice of denial of renewal is considered approved for renewal
and the person may continue to transact business as a residential mortgage originator or
servicer whether or not the renewed license has been received on or before January 1 of
the renewal year. Application for renewal of a license is considered timely filed if received
by the commissioner by, or mailed with proper postage and postmarked by, December 15
of the renewal year. An application for renewal is considered properly filed if made upon
forms duly executed and sworn to, accompanied by fees prescribed by this chapter, and
containing any information that the commissioner requires.
(b) A person who fails to make a timely application for renewal of a license and
who has not received the renewal license as of January 1 of the renewal year is unlicensed
until the renewal license has been deleted text begin issueddeleted text end new text begin approvednew text end by the commissioner deleted text begin and is received
by the persondeleted text end .
Sec. 10.
Minnesota Statutes 2014, section 58A.07, subdivision 1, is amended to read:
Subdivision 1.
Generally.
In order to meet the written test requirement referred to
in section 58A.05, clause (5), an individual shall pass, in accordance with the standards
established under this section, a qualified written test developed by the Nationwide
deleted text begin Mortgagedeleted text end new text begin Multistatenew text end Licensing System and Registrynew text begin (NMLSR) and designated as the
NMLSR's National Test Component with Uniform State Content for Mortgage Loan
Originator Licensingnew text end and administered by a test provider approved by the deleted text begin Nationwide
Mortgage Licensing System and Registrydeleted text end new text begin NMLSRnew text end based upon reasonable standards.
Sec. 11.
Minnesota Statutes 2014, section 58A.09, subdivision 1, is amended to read:
Subdivision 1.
Generally.
In order to meet the annual continuing education
requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage
loan originator shall complete at least eight hours of education approved according to
subdivision 2 that includes at least:
(1) three hours of federal law and regulations;
(2) two hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; deleted text begin and
deleted text end
(3) two hours of training related to lending standards for the nontraditional mortgage
product marketplacedeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(4) one hour of Minnesota state law and rules.
new text end
Sec. 12. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall change the term "Nationwide Mortgage Licensing
System and Registry" or similar term to "Nationwide Multistate Licensing System and
Registry" wherever the term appears in Minnesota Statutes, chapter 58A.
new text end