Minnesota Legislature
SF 3175
2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/21/2016 12:05pm
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A bill for an act
relating to commerce; regulating bullion product dealers; amending Minnesota
Statutes 2014, sections 80G.01; 80G.02; 80G.03; 80G.04; 80G.05; 80G.06;
80G.07, subdivision 1; 80G.08; 80G.10; repealing Minnesota Statutes 2014,
section 80G.07, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 80G.01, is amended to read:
80G.01 DEFINITIONS.
Subdivision 1.
Scope.
For purposes of this chapter, the following terms have the
meanings given to them in this section.
Subd. 2.
Bullion deleted text begincoindeleted text endnew text begin productnew text end.
"Bullion deleted text begincoindeleted text endnew text begin productnew text end" means any coinnew text begin, round, bar,
or ingotnew text end containing deleted text beginmore than one percent by weight ofdeleted text end silver, gold, platinum,new text begin palladium,
new text endor other precious metal.
Subd. 3.
deleted text beginBullion coindeleted text end Dealer.
(a) Subject to the exceptions in paragraph (b), a
"deleted text beginbullion coindeleted text end dealer" means any person who buys, sells, solicits, or markets bullion deleted text begincoins
deleted text endnew text beginproductsnew text end or investments in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end to consumers and deleted text beginis eitherdeleted text endnew text begin:
new text end
new text begin (1) isnew text end incorporated, registered, domiciled, or otherwise located in this statedeleted text begin, or whodeleted text endnew text begin;
new text end
new text begin
(2) has a dealer representative located in this state; or
new text end
new text begin (3)new text end does business with a consumer deleted text begindomiciled, residing, or otherwise located in this
statedeleted text endnew text begin at a location in this state, or delivers or ships a bullion product or makes a payment to
a consumer at an address in this state, unless the transaction occurs when the consumer is
at a business location outside of this statenew text end.
(b) A deleted text beginbullion coindeleted text end dealer does not include any of the following persons:
(1) a person who engages only in wholesale bullion deleted text begincoindeleted text endnew text begin productnew text end transactions with
deleted text beginbullion coindeleted text endnew text begin other persons who engage only in wholesale bullion product transactions or
withnew text end dealers whonew text begin buy ornew text end sell at retail and are properly registered under this chapter;
(2) a person who engages only in transactions at occasional garage or yard sales
held at the seller's residence, farm auctions held at the seller's residence, or estate sales
held at the decedent's residence;
(3) a person who is properly registered pursuant to chapter 80A, or the federal
Securities Exchange Act of 1934 and rules promulgated thereunder as a securities broker
dealer or broker dealer agent;
(4) an auctioneer who auctions deleted text begincoins at auctiondeleted text endnew text begin bullion productsnew text end on behalf of an
owner, if the auctioneer does not take title or ownership of the deleted text begincoinsdeleted text endnew text begin bullion productsnew text end, or
the operator of an Internet Web site that allows users to offer the sale of deleted text begincoinsdeleted text endnew text begin bullion
productsnew text end through that Web site, does not set the price, is not the seller of record, and does
not take possession of any deleted text begincoinsdeleted text endnew text begin bullion productsnew text end to be offered;
(5) a person who engages only in transactions at deleted text beginoccasionaldeleted text endnew text begin no more than 12new text end trade
showsnew text begin per year in this statenew text end where the consumer is present and the transaction is made at
the trade show; or
(6) a federally or state-chartered bank, bank and trust, savings bank, savings
association, or credit union or any operating subsidiary of them.
Subd. 4.
deleted text beginCoindeleted text end Dealer representative.
"deleted text beginCoindeleted text end Dealer representative" means any
natural person acting as an employee, contractor, or agent of a deleted text beginbullion coindeleted text end dealer and
who has interactions with consumers for the purpose of the buying, selling, solicitation,
or marketing of bullion deleted text begincoinsdeleted text endnew text begin productsnew text end or investments in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end. new text beginThis
term does not mean a natural person who has interactions with consumers solely for
administrative purposes.
new text end
Subd. 5.
Commissioner.
"Commissioner" means the commissioner of commerce.
Subd. 6.
Owner.
"Owner" means any person who has an ownership interest in a
deleted text beginbullion coindeleted text end dealer, regardless of whether directly or indirectly, of more than ten percent
and who is actively engaged in the direction, management, oversight, or operation of the
deleted text beginbullion coindeleted text end dealer or its business affairs.
Subd. 8.
Precious metal content.
"Precious metal content" means the quantity,
measured in gramsnew text begin or troy ouncesnew text end, of gold, silver, platinum,new text begin palladium,new text end or other precious
metal in a deleted text begincoindeleted text endnew text begin bullion productnew text end and the percentage that the precious metal constitutes of
the total weight of the deleted text begincoindeleted text endnew text begin bullion productnew text end.
Sec. 2.
Minnesota Statutes 2014, section 80G.02, is amended to read:
80G.02 REGISTRATION.
Subdivision 1.
Registration required.
deleted text beginBeginning July 1, 2014,deleted text end It deleted text beginshall bedeleted text endnew text begin is
new text endunlawful for a deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative to solicit, market, buy,
sell, or deliver bullion deleted text begincoinsdeleted text endnew text begin productsnew text end or investments in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end to a
consumer without being registered by the commissioner as provided for in this chapterdeleted text begin,
if the bullion coin dealer has engaged in a bullion coin transaction or transactions with
consumers during the 12-month period prior to July 1, 2014, that exceed $5,000 in
the aggregate, as determined by the transactions' sale prices. If a bullion coin dealer
was not required to be registered beginning on July 1, 2014, the bullion coindeleted text endnew text begin. Anew text end dealer
must submit an application to register itself and each of its deleted text begincoindeleted text end dealer representatives
within deleted text begin30deleted text endnew text begin 45new text end days of reaching deleted text begin$5,000deleted text endnew text begin $25,000new text end in the aggregate of bullion deleted text begincoindeleted text endnew text begin productnew text end
transactions with consumers deleted text beginin any 12-month period prior todeleted text endnew text begin betweennew text end July 1new text begin and June 30new text end
of any deleted text begincalendardeleted text end year, as determined by the transactions' salenew text begin or purchasenew text end prices. Once a
deleted text beginbullion coindeleted text end dealer is required to register itself and its deleted text begincoindeleted text end dealer representatives, the
deleted text begincoindeleted text end dealer must thereafter renew its registration and the registration of each of its deleted text begincoindeleted text end
dealer representatives in accordance with this chapter, regardless of the aggregatenew text begin annualnew text end
amount of transactions, unless the person ceases to be a deleted text beginbullion coindeleted text end dealer. A deleted text begincoindeleted text end dealer
representative may not buy, sell, solicit, or market bullion deleted text begincoinsdeleted text endnew text begin productsnew text end or investments
in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end on behalf of a deleted text beginbullion coindeleted text end dealer unless the dealer is properly
registered with the commissioner under this section.
Subd. 2.
Registration obligations.
Registrations issued or renewed by the
commissioner under this chapter shall expire on June 30 and must be renewed.
Subd. 3.
Registration application and renewal.
The application and renewal
forms shall include the following information, as applicable, which shall be considered by
the commissioner in determining whether to issue a registration and whether to thereafter
renew the registration:
(1) the name, assumed names, doing business as names, including caller
identification names, and business addresses of the deleted text beginbullion coindeleted text end dealer, the name of
each owner and officer, and the name and primary work location of each deleted text begincoindeleted text end dealer
representative. A deleted text beginbullion coindeleted text end dealer who desires to carry on business in more than one
location shall identify each address where business is conducted;
(2) if a deleted text beginbullion coindeleted text end dealer is doing business under any name other than the dealer's
legal name, documentation that the assumed name has been properly filed with the
secretary of statenew text begin or appropriate government officenew text end;
(3) thenew text begin dealer's primarynew text end telephone deleted text beginnumbers, including cellular phone numbers
deleted text endnew text beginnumbernew text end, deleted text beginelectronic mail addressesdeleted text endnew text begin e-mail addressnew text end, and Web site domain deleted text beginnamesdeleted text endnew text begin namenew text end used
or intended to be used by the deleted text beginbullion coindeleted text end dealer and its deleted text begincoindeleted text end dealer representatives to
buy, sell, solicit, market, or deliver to consumers bullion deleted text begincoindeleted text endnew text begin productsnew text end or investments
in bullion deleted text begincoindeleted text endnew text begin productsnew text end;
(4) the disclosure of all criminal convictions by any courtnew text begin, including military courts, new text end
within the last ten yearsnew text begin, except those relating to misdemeanor traffic citations and
misdemeanor convictions involving driving under the influence, driving while intoxicated,
driving without a license, reckless driving, or driving with a suspended or revoked license,
and juvenile offenses, new text end for the deleted text beginbullion coindeleted text end dealer and each officer and owner of the deleted text beginbullion
coindeleted text end dealer and for each of its deleted text begincoindeleted text end dealer representatives;
(5) the disclosure of any civil judgments in favor of a government entity or
government entity orders entered, filed, or issued against the deleted text beginbullion coindeleted text end dealer, its
officers and owners, or its deleted text begincoindeleted text end dealer representatives within the last ten years for violation
of consumer protection laws or unfair trade practice laws or for failure to account to a
consumer for money or property received from the consumer;
(6) the disclosure of any settlement or other agreement with any government entity
within the last ten years resolving concerns that the deleted text beginbullion coindeleted text end dealer, its officers and
owners, or its coin dealer representatives violated consumer protection or unfair trade
practice laws, or for failure to account to a consumer for money or property received
from the consumer; and
(7) the disclosure of any instance in which the deleted text beginbullion coindeleted text end dealer, its officers and
owners, and its deleted text begincoindeleted text end dealer representatives were at any time permanently or temporarily
prohibited by any court of competent jurisdiction or ordered to cease and desist as the
result of a government agency action from engaging in buying, selling, soliciting, or
marketing of bullion deleted text begincoindeleted text endnew text begin productsnew text end or investments in bullion deleted text begincoindeleted text endnew text begin productsnew text end. A deleted text beginbullion
coindeleted text end dealer may rely on the screening process provided for in section 80G.05 and the
statements of its deleted text begincoindeleted text end dealer representatives for the purposes of complying with the
disclosure requirements of this clause relating to deleted text begincoindeleted text end dealer representatives, provided that
such reliance is reasonable, in good faith, and the deleted text beginbullion coindeleted text end dealer has no knowledge of
information suggesting that the screening results or statement are inaccurate.
Subd. 4.
Notice of change in registration information.
A deleted text beginbullion coindeleted text end dealer must
provide the commissioner written notice of a change in the dealer's name, assumed names,
doing business as names, business addresses, including all business addresses at which it or
its deleted text begincoindeleted text end dealer representatives conduct business, owners, deleted text beginelectronic maildeleted text endnew text begin e-mailnew text end addresses,
Web site domain names, ornew text begin primarynew text end telephone deleted text beginnumbersdeleted text endnew text begin numbernew text end used by it or its deleted text begincoin
deleted text enddealer representatives to buy, sell, solicit, or market to consumers bullion deleted text begincoindeleted text endnew text begin productsnew text end or
investments in bullion deleted text begincoindeleted text endnew text begin productsnew text end no later than deleted text begintendeleted text endnew text begin 30new text end days after the change occurs.
Subd. 5.
Registration fee.
(a) The fee for each registration under this chapter
shall be as follows:
(1) deleted text beginbullion coindeleted text end dealers, $25; and
(2) deleted text begincoindeleted text end dealer representatives, $10.
(b) The commissioner, based on the cost of processing registrations, may adjust the
registration fee on an annual basis as needed.
Sec. 3.
Minnesota Statutes 2014, section 80G.03, is amended to read:
80G.03 REGISTRATION DENIAL, NONRENEWAL, REVOCATION, AND
SUSPENSION.
Subdivision 1.
Authority.
The commissioner may, by order, suspend, revoke, or
refuse to issue or renew a deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative registration for
any one or more of the following causes:
(1) providing incorrect, false, misleading, or incomplete information to the
commissioner or refusing to allow a reasonable inspection of information and documents
in the possession of the deleted text beginbullion coindeleted text end dealer, deleted text begincoindeleted text end dealer representative, or a third party or
to allow a reasonable inspection of premises;
(2) obtaining or attempting to obtain a registration through misrepresentation or fraud;
(3) having a deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative registration or its
equivalent, including licensure under section 325F.73, denied, suspended, or revoked by
any locality within the state or other state, province, district, or territory;
(4) being permanently or temporarily enjoined by any court of competent jurisdiction
or being ordered to cease and desist by a government agency from engaging in or continuing
any conduct or practice involving the buying, selling, soliciting, or marketing of bullion
deleted text begincoinsdeleted text endnew text begin productsnew text end, investments in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end, or precious metal to consumers;
(5) violating the provisions of this chapter or sections 45.027, 325D.43 to 325D.48,
325F.67, 325F.68 to 325F.69, 325F.694, and 325F.73 to 325F.744, or federal or state
taxation or labor law; or
(6) violating a subpoena or order of the commissioner or a court issued pursuant
to this chapter or sections 45.027, 325D.43 to 325D.48, 325F.67, 325F.68 to 325F.69,
325F.694, 325F.70, and 325F.73 to 325F.744.
Subd. 2.
deleted text beginBullion coindeleted text end Dealer responsibility for actions of deleted text begincoindeleted text end dealer
representatives.
The commissioner may take action against a deleted text beginbullion coindeleted text end dealer for
any violations of this chapter by its deleted text begincoindeleted text end dealer representatives conducting activities on
behalf of or at the direction of the deleted text beginbullion coindeleted text end dealer. The commissioner may also take
action against the deleted text begincoindeleted text end dealer representative.
Subd. 3.
Other authority of the commissioner.
If a registration lapses, is
surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner
may institute a proceeding under this subdivision within two years after the registration
was last effective and enter a revocation order as of the last date on which the registration
was in effect, and impose a civil penalty as provided for in section 45.027, subdivision 6.
Subd. 4.
Effect of revocation.
A revocation of a registration prohibits the deleted text beginbullion
coindeleted text end dealer or deleted text begincoindeleted text end dealer representatives from making a new application for a registration
for at least two years from the effective date of the revocation.
Sec. 4.
Minnesota Statutes 2014, section 80G.04, is amended to read:
80G.04 CRIMINAL CONVICTIONS.
Subdivision 1.
deleted text beginBullion coindeleted text end Dealer registration precluded.
The commissioner
must deny an application for registration or renewal of a deleted text beginbullion coindeleted text end dealer, or revoke such
registration, if the bullion coin dealer or its owners or officers have within the last ten years
been convicted in any court of any financial crime or other crime involving fraud or theft.
Subd. 2.
deleted text beginCoindeleted text end Dealer representative registration precluded.
The commissioner
must deny an application for registration or renewal of a deleted text begincoindeleted text end dealer representative, or
revoke such registration, if the deleted text begincoindeleted text end dealer representative has within the last ten years been
convicted in any court of any financial crime or other crime involving fraud or theft.
Sec. 5.
Minnesota Statutes 2014, section 80G.05, is amended to read:
80G.05 SCREENING.
Subdivision 1.
Screening process required.
Each deleted text beginbullion coindeleted text end dealer must
establish procedures to screen each of its owners and officers and each of its deleted text begincoin
deleted text enddealer representatives prior to submitting the application to the commissioner for initial
registration and at each renewal. The results of such screenings shall benew text begin kept on file by the
dealer and, if requested by the commissioner,new text end provided to the commissioner as part of the
initial registration and all renewal registrations deleted text beginif requested by the commissionerdeleted text end.
Subd. 2.
Initial screening.
The screening process for initial registration must be
done no more than 60 days before the submission of an application for registration. The
process must include a national criminal history record search, a judgment search, and a
county criminal history search for all counties where the owner, officer, or deleted text begincoindeleted text end dealer
representative has resided within the immediately preceding ten years. Each deleted text beginbullion coin
deleted text enddealer shall use a reputable, reliable, and accurate vendor authorized to do business in
deleted text beginMinnesotadeleted text endnew text begin any statenew text end to conduct the background screening process on its owners, officers,
and deleted text begincoindeleted text end dealer representatives.
Subd. 3.
Renewal screening.
The screening process for the renewal of a
registration must include a national criminal history record search, a judgment search, and
county criminal history search for all counties where the owner, officer, or deleted text begincoindeleted text end dealer
representative has resided since satisfactorily completing the last screening process
conducted pursuant to this section. Screening for renewal of the owner, officer, and deleted text begincoin
deleted text enddealer representative registrations must take place no more than 60 days before the
submission of an application for renewal of a registration.
Sec. 6.
Minnesota Statutes 2014, section 80G.06, is amended to read:
80G.06 SURETY BOND.
Subdivision 1.
Surety bond requirement.
Every deleted text beginbullion coindeleted text end dealer shall maintain a
current, valid surety bond issued by a surety company admitted to do business in Minnesota
in an amount based on the transactions (purchases from and sales to consumers at retail)
during the 12-month period prior to registration, or renewal, whichever is applicable.
The amount of the surety bond shall be as specified in the table below:
| Transaction Amount in Preceding 12-month Period |
Surety Bond Required |
| deleted text begin$0deleted text endnew text begin $25,000new text end to $200,000 |
$25,000 |
| $200,000.01 to $500,000 |
$50,000 |
| $500,000.01 to $1,000,000 |
$100,000 |
| $1,000,000.01 to $2,000,000 |
$150,000 |
| Over $2,000,000 |
$200,000 |
Subd. 2.
Action on bond permitted.
A consumer injured in money or property
by a deleted text beginbullion coindeleted text end dealer's or deleted text begincoindeleted text end dealer representative's failure to provide bullion deleted text begincoins
deleted text endnew text beginproductsnew text end that the consumer has paid for or failure to remit money or goods owed to the
consumer in connection with the consumer's sale of bullion deleted text begincoinsdeleted text endnew text begin productsnew text end may file a
claim with the surety and if the claim is not paid, is authorized to bring an action based
on the bond and recover against the surety. The commissioner or attorney general may
also file a claim and bring an action on the bond and recover against the surety on behalf
of a consumer so injured.
Sec. 7.
Minnesota Statutes 2014, section 80G.07, subdivision 1, is amended to read:
Subdivision 1.
Sales practices.
No deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative
shall:
(1) prior to a transaction regarding bullion deleted text begincoinsdeleted text endnew text begin productsnew text end, or concurrent with the
delivery thereof, fail to provide to the consumer deleted text beginin writingdeleted text end new text beginan invoice, whichnew text end, in a clear
and conspicuous manner, new text begindisclosesnew text endnew text begin the dealer's registration number, the Department of
Commerce's e-mail address and telephone number,new text end the sale or purchase price deleted text beginanddeleted text endnew text begin,new text end the
deleted text beginprecious metal contentdeleted text endnew text begin quantity new text endof the bullion deleted text begincoinsdeleted text endnew text begin productsnew text end deleted text begininvolved in the transactiondeleted text endnew text begin,
and specifically identifies and describes the bullion productsnew text enddeleted text begin. The written notice shall
also include the bullion coin dealer's registration identification information issued by the
commissioner, and the Department of Commerce's e-mail address and telephone number.
A copy of the written notice shall be provided to the consumer and a copy retained by the
bullion coin dealerdeleted text endnew text begin, as well as their precious metal content, but only if it differs from the
precious metal content specified by a government mint issuing the product and struck on
the product, or if the product is not issued by a government mintnew text end;
(2)new text begin fail to investigate any consumer complaint and retain records of all consumer
complaints, the results of its investigations, and the dealer's response and resolution of
the complaint;
new text end
new text begin (3)new text end fail to delivernew text begin by common carriernew text end bullion deleted text begincoinsdeleted text endnew text begin productsnew text end to a consumer within
the time agreed upon with the consumer or, if no such agreement exists, within 30 days
after the consumer has paid for the deleted text begincoinsdeleted text endnew text begin bullion productsnew text end;
deleted text begin (3)deleted text endnew text begin (4)new text end fail to pay a consumer for purchased bullion deleted text begincoinsdeleted text endnew text begin productsnew text end within the time
agreed upon with the consumer or, if no such agreement exists, within 30 days after the
consumer has provided the deleted text begincoinsdeleted text endnew text begin bullion productsnew text end;
deleted text begin
(4) fail to provide a written invoice at the time of the transaction specifically
identifying and describing the bullion coins involved in the transaction, the quantity of
bullion coins involved in the transaction, and the bullion coins' sale or purchase price and
precious metal content. The written invoice shall include the bullion coin dealer registration
identification information issued by the commissioner, and the Department of Commerce's
e-mail address and telephone number. A copy of the transaction documentation shall be
provided to the consumer and a copy retained by the bullion coin dealer;
deleted text end
(5) misrepresent the delivery date of bullion deleted text begincoinsdeleted text endnew text begin productsnew text end or payment for bullion
deleted text begincoinsdeleted text endnew text begin productsnew text end, or the dealer or representative's professional qualifications, affiliations,
or registration;
(6) misrepresent any material aspect of a bullion deleted text begincoindeleted text endnew text begin productnew text end, including its
performance, efficacy, nature, investment value, central characteristics, liquidity, earnings
potential, or profitability;
(7) misrepresent the manner in which any bullion deleted text begincoinsdeleted text endnew text begin productsnew text end a consumer
provides will be stored or otherwise handled once received;
(8) renegotiate the terms of a sale or purchase after receiving a consumer's payment
or bullion deleted text begincoinsdeleted text endnew text begin productsnew text end without first obtaining the consumer's agreement to renegotiate
and offering the consumer the option to have the payment fully refunded or the entirety of
the bullion deleted text begincoinsdeleted text endnew text begin productsnew text end returned;
(9) fail to respond within three business days to a consumer inquiry about the delivery
status of bullion deleted text begincoinsdeleted text endnew text begin productsnew text end that the consumer has paid for but not yet received or the
status of a payment for bullion deleted text begincoinsdeleted text endnew text begin productsnew text end that the consumer has already provided;
(10) telephone or solicit a consumer, or sell or provide the consumer's name to
any other deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative, after the consumer requests
not to be contacted;
(11) violate a subpoena or order of the commissioner or a court;
(12) make any communication to a potential buyer or seller of bullion deleted text begincoinsdeleted text endnew text begin products
new text endthat misrepresents the relationship, if any, between the deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer
representative and any government agency or mint;
(13) improperly withhold, misappropriate, or convert any money or properties
received in the course of buying, selling, soliciting, or marketing bullion deleted text begincoinsdeleted text endnew text begin productsnew text end or
investments in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end to consumers;
(14) misrepresent the terms of an actual or proposed purchase or sale of bullion deleted text begincoins
deleted text endnew text beginproductsnew text end or investment in bullion deleted text begincoinsdeleted text endnew text begin productsnew text end to a consumer; or
(15) violate any other federal, state, or local law or rule related to selling, purchasing,
soliciting, or marketing of bullion deleted text begincoindeleted text endnew text begin productsnew text end, investments in bullion deleted text begincoindeleted text endnew text begin productsnew text end,
or precious metals, or any federal, state, or local law related to fraudulent, coercive, or
dishonest practices, or federal, state, or local law related to taxation or labor standards.
Sec. 8.
Minnesota Statutes 2014, section 80G.08, is amended to read:
80G.08 CRIMINAL VIOLATION.
A person who conducts business as a deleted text beginbullion coindeleted text end dealer or as a deleted text begincoindeleted text end dealer
representative without having first registered with the commissionernew text begin as required in section
80G.02, subdivision 1new text end, or who carries on such business after the revocation, suspension,
or expiration of a registration, or who violates section 80G.07, subdivision 1, clause deleted text begin(2)
ordeleted text end (3) new text beginor (4)new text end, is guilty of a misdemeanor.
Sec. 9.
Minnesota Statutes 2014, section 80G.10, is amended to read:
80G.10 INVESTIGATIONS AND CIVIL ENFORCEMENT.
Subdivision 1.
Civil action instituted by commissioner.
If the commissioner
believes that a person has engaged, is engaging, or is about to engage in an act, practice,
or course of business constituting a violation of this chapter or a rule adopted or order
issued under this chapter or that a person has, is, or is about to engage in an act, practice,
or course of business that materially aids a violation of this chapter or a rule adopted or
order issued under this chapter, the commissioner may maintain an action in the district
court to enjoin the act, practice, or course of business and to enforce compliance with this
chapter or a rule adopted or order issued under this chapter.
Subd. 2.
Relief available.
In an action under this section and on a proper showing,
the court may:
(1) issue a permanent or temporary injunction, restraining order, or declaratory
judgment;
(2) order other appropriate or ancillary relief, which may include:
(i) an asset freeze, accounting, writ of attachment, writ of general or specific
execution, and appointment of a receiver or conservator, that may be the commissioner,
for the defendant or the defendant's assets;
(ii) ordering the commissioner to take charge and control of a defendant's property,
including investment accounts and accounts in a depository institution, rents, and profits;
to collect debts; and to acquire and dispose of property;
(iii) imposing a civil penalty up to $10,000 for each violation; an order of rescission,
restitution, or disgorgement directed to a person that has engaged in an act, practice, or
course of business constituting a violation of this chapter or a rule adopted or order issued
under this chapter or the predecessor act; and
(iv) ordering the payment of prejudgment and postjudgment interest; or
(3) order such other relief as the court considers appropriate.
Subd. 3.
No bond required.
The commissioner may not be required to post a bond
in an action or proceeding under this chapter.
Subd. 4.
Commissioner authority.
(a) If the commissioner determines that a
person has engaged, is engaged, or is about to engage in an act, practice, or course of
conduct constituting a violation of this chapter or a rule adopted or order issued under this
chapter or that a person has materially aided, is materially aiding, or is about to materially
aid an act, practice, or course of conduct constituting a violation of this chapter or rule
adopted or order issued under this chapter the commissioner may:
(1) issue an order directing the person to cease and desist from engaging in the
act, practice, or conduct or to take other action necessary or appropriate to comply with
this chapter; or
(2) issue an order denying, suspending, revoking, or conditioning the registration of
the deleted text beginbullion coindeleted text end dealer or deleted text begincoindeleted text end dealer representative.
(b) Upon issuance of an order, the commissioner shall promptly serve each person
subject to the order with a copy of the order and a notice that the order has been
issued. The order must include a statement of the reasons for the order and whether the
commissioner will seek a civil penalty or costs of the investigation, and notice that the
person must within 30 days of being served with the order, request in writing a hearing
and that within 15 days after receipt of a written hearing request from the person, the
matter will be scheduled for a hearing. If a person subject to the order does not request a
hearing within 30 days after the date of service of the order, the order becomes final as to
that person by operation of law. If a hearing is requested, the commissioner, after notice of
an opportunity for hearing to each person subject to the order, may modify or vacate the
order or extend it until final determination.
(c) If a hearing is requested pursuant to paragraph (b), a hearing must be held under
chapter 14 and a final order may not be issued unless the commissioner makes findings of
fact and conclusions of law in a record according to chapter 14. The final order may make
final, vacate, or modify the order issued under paragraph (a).
(d) If a petition for judicial review of a final order is not filed in accordance with
chapter 14, the commissioner may file a certified copy of the final order with the clerk of a
court of competent jurisdiction. The order so filed has the same effect as a judgment of the
court and may be recorded, enforced, or satisfied in the same manner as a judgment of
the court.
(e) If a person does not comply with an order under this section, the commissioner
may petition a court of competent jurisdiction to enforce the order. The court may not
require the commissioner to post a bond in an action or proceeding under this section.
If the court finds, after service and opportunity for hearing, that the person was not in
compliance with the order, the court may adjudge the person in civil contempt of the order.
The court may impose a further civil penalty against the person for contempt in an amount
up to $10,000 for each violation and may grant any other relief the court determines is just
and proper in the circumstances.
(f) In addition to the authority granted under this chapter, the commissioner has all
the authority provided under section 45.027 to ensure compliance with this chapter.
Sec. 10. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, section 80G.07, subdivision 2,
new text end
new text begin
is repealed.
new text end
Sec. 11. new text beginEFFECTIVE DATE.
new text end
new text begin
Sections 1 to 10 are effective July 1, 2016.
new text end