SF 4097

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/25/2024 08:25am

A bill for an act
relating to commerce; adding and modifying various provisions related to insurance;
regulating financial institutions; modifying provisions governing financial
institutions; providing for certain consumer protections and privacy; modifying
provisions governing commerce; making technical changes; establishing civil and
criminal penalties; authorizing administrative rulemaking; requiring reports;
amending Minnesota Statutes 2022, sections 45.011, subdivision 1; 47.20,
subdivision 2; 47.54, subdivisions 2, 6; 48.24, subdivision 2; 58.02, subdivisions
18, 21, by adding a subdivision; 58.04, subdivisions 1, 2; 58.05, subdivisions 1,
3; 58.06, by adding subdivisions; 58.08, subdivisions 1a, 2; 58.10, subdivision 3;
58.115; 58.13, subdivision 1; 58B.02, subdivision 8, by adding a subdivision;
58B.03, by adding a subdivision; 58B.06, subdivisions 4, 5; 58B.07, subdivisions
1, 3, 9, by adding subdivisions; 58B.09, by adding a subdivision; 60A.201, by
adding a subdivision; 67A.01, subdivision 2; 67A.14, subdivision 1; 80A.61;
80A.66; 80C.05, subdivision 3; 82B.021, subdivision 26; 82B.094; 82B.095,
subdivision 3; 82B.13, subdivision 1; 82B.19, subdivision 1; 115C.08, subdivision
2; 239.791, by adding a subdivision; 325F.03; 325F.04; 325F.05; 325G.24;
325G.25, subdivision 1; 340A.101, subdivision 13; 340A.404, subdivision 2;
340A.412, by adding a subdivision; 507.071; Minnesota Statutes 2023 Supplement,
sections 53B.28, subdivisions 18, 25; 53B.29; 53B.69, by adding subdivisions;
80A.50; 239.791, subdivision 8; 325E.80, subdivisions 1, 5, 6, 7; 332.71,
subdivisions 2, 4, 5, 7; 332.72; 332.73, subdivision 1; 332.74, subdivisions 3, 5;
Laws 2022, chapter 86, article 2, section 3; Laws 2023, chapter 57, article 2,
sections 7; 8; 9; 10; 11; 12; 13; 14; 15; proposing coding for new law in Minnesota
Statutes, chapters 53B; 58; 65A; 325F; 325G; 332; 507; 513; proposing coding
for new law as Minnesota Statutes, chapters 46A; 60M; repealing Minnesota
Statutes 2022, sections 45.014; 58.08, subdivision 3; 82B.25; 325G.25, subdivision
1a; 332.3351; Minnesota Statutes 2023 Supplement, sections 53B.58; 332.71,
subdivision 8.

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

ARTICLE 1

INSURANCE POLICY

Section 1.

Minnesota Statutes 2022, section 60A.201, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Coverage deemed unavailable. new text end

new text begin Coverage for a risk that was referred to a
surplus lines broker by a Minnesota licensed insurance producer who is not affiliated with
that surplus lines broker shall be deemed unavailable from a licensed insurer.
new text end

Sec. 2.

Minnesota Statutes 2022, section 67A.01, subdivision 2, is amended to read:

Subd. 2.

Authorized territory.

(a) A township mutual fire insurance company may be
authorized to write business in up to nine adjoining counties in the aggregate at the same
time. If policyholder surplus is at least $500,000 as reported in the company's last annual
financial statement filed with the commissioner, the company may, if approval has been
granted by the commissioner, be authorized to write business in ten or more counties in the
aggregate at the same time, subject to a maximum of deleted text begin 20 deleted text end new text begin 30 new text end adjoining counties, in accordance
with the following schedule:

Number of Counties	Surplus Requirement
10	$500,000
11	600,000
12	700,000
13	800,000
14	900,000
15	1,000,000
16	1,100,000
17	1,200,000
18	1,300,000
19	1,400,000
20	1,500,000
new text begin 21 new text end	new text begin 1,600,000 new text end
new text begin 22 new text end	new text begin 1,700,000 new text end
new text begin 23 new text end	new text begin 1,800,000 new text end
new text begin 24 new text end	new text begin 1,900,000 new text end
new text begin 25 new text end	new text begin 2,000,000 new text end
new text begin 26 new text end	new text begin 2,100,000 new text end
new text begin 27 new text end	new text begin 2,200,000 new text end
new text begin 28 new text end	new text begin 2,300,000 new text end
new text begin 29 new text end	new text begin 2,400,000 new text end
new text begin 30 new text end	new text begin 2,500,000 new text end

(b) In the case of a merger of two or more companies having contiguous territories, the
surviving company in the merger may transact business in the entire territory of the merged
companies; however, the territory of the surviving company in the merger deleted text begin may not be larger
than 20 deleted text end new text begin must be approved by the commissioner and may not be in excess of 30 new text end counties new text begin ,
provided the company complies with the additional reporting requirements stipulated in
paragraph (g) new text end .

new text begin (c) Notwithstanding paragraph (b), a policy issued by a constituent company to the
merger may remain effective, without respect to the policy being issued in a county outside
the territory of the surviving company, until the policy:
new text end

new text begin (1) expires or is terminated by the policy's terms; or
new text end

new text begin (2) is terminated or annulled and canceled in accordance with section 67A.18.
new text end

new text begin The surviving company must not amend or renew a policy issued in a county outside the
surviving company's territory.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end A township mutual fire insurance company may write new and renewal insurance
on property in cities within the company's authorized territory having a population less than
25,000. A township mutual fire insurance company may continue to write new and renewal
insurance once the population increases to 25,000 or greater provided that amended and
restated articles are filed with the commissioner along with a certification that such city's
population has increased to 25,000 or greater.

deleted text begin (d) deleted text end new text begin (e) new text end A township mutual fire insurance company may write new and renewal insurance
on property in cities within the company's authorized territory with a population of 25,000
or greater, but less than 150,000, if approval has been granted by the commissioner. No
township mutual fire insurance company shall insure any property in cities with a population
of 150,000 or greater.

deleted text begin (e) deleted text end new text begin (f) new text end If a township mutual fire insurance company provides evidence to the
commissioner that the company had insurance in force on December 31, 2007, in a city
within the company's authorized territory with a population of 25,000 or greater, but less
than 150,000, the company may write new and renewal insurance on property in that city
provided that the company files amended and restated articles by July 31, 2010, naming
that city.

new text begin (g) If a surviving company of a merger writes in more than 20 counties, that company
must report to the commissioner the following items on a quarterly basis:
new text end

new text begin (1) income statement;
new text end

new text begin (2) balance sheet;
new text end

new text begin (3) insurance in force; and
new text end

new text begin (4) number of policies.
new text end

Sec. 3.

Minnesota Statutes 2022, section 67A.14, subdivision 1, is amended to read:

Subdivision 1.

Kinds of property; property outside authorized territory.

(a) Township
mutual fire insurance companies may insure qualified property. Qualified property means
dwellings, household goods, appurtenant structures, farm buildings, farm personal property,
churches, church personal property, county fair buildings, community and township meeting
halls and their usual contents.

(b) Township mutual fire insurance companies may extend coverage to include an
insured's secondary property if the township mutual fire insurance company covers qualified
property belonging to the insured. Secondary property means any real or personal property
that is not considered qualified property for a township mutual fire insurance company to
cover under this chapter. The maximum amount of coverage that a township mutual fire
insurance company may write for secondary property is 25 percent of the total limit of
liability of the policy issued to an insured covering the qualified property.

(c) A township mutual fire insurance company may insure any real or personal property,
including qualified or secondary property, subject to the limitations in subdivision 1,
paragraph (b), located outside the limits of the territory in which the company is authorized
by its certificate or articles of incorporation to transact business, if the company is already
covering qualified property belonging to the insured, inside the limits of the company's
territory. new text begin For purposes of this paragraph, qualified property inside the limits of the company's
territory includes qualified property outside the territory of the surviving company to a
merger for the duration of the policy insuring the qualified property if the qualified property
was qualified property inside the territory of a constituent company to the merger.
new text end

(d) A township mutual fire insurance company may insure property temporarily outside
of the authorized territory of the township mutual fire insurance company.

Sec. 4.

Minnesota Statutes 2022, section 507.071, is amended to read:

507.071 TRANSFER ON DEATH DEEDS.

Subdivision 1.

Definitions.

For the purposes of this section the following terms have
the meanings given:

(a) "Beneficiary" or "grantee beneficiary" means a person or entity named as a grantee
beneficiary in a transfer on death deed, including a successor grantee beneficiary.

(b) "County agency" means the county department or office designated to recover medical
assistance benefits from the estates of decedents.

(c) "Grantor owner" means an owner, whether individually, as a joint tenant, or as a
tenant in common, named as a grantor in a transfer on death deed upon whose death the
conveyance or transfer of the described real property is conditioned. Grantor owner does
not include a spouse who joins in a transfer on death deed solely for the purpose of conveying
or releasing statutory or other marital interests in the real property to be conveyed or
transferred by the transfer on death deed.

(d) "Owner" means a person having an ownership or other interest in all or part of the
real property to be conveyed or transferred by a transfer on death deed either at the time the
deed is executed or at the time the transfer becomes effective. Owner does not include a
spouse who joins in a transfer on death deed solely for the purpose of conveying or releasing
statutory or other marital interests in the real property to be conveyed or transferred by the
transfer on death deed.

(e) "Property" and "interest in real property" mean any interest in real property located
in this state which is transferable on the death of the owner and includes, without limitation,
an interest in real property defined in chapter 500, a mortgage, a deed of trust, a security
interest in, or a security pledge of, an interest in real property, including the rights to
payments of the indebtedness secured by the security instrument, a judgment, a tax lien,
both the seller's and purchaser's interest in a contract for deed, land contract, purchase
agreement, or earnest money contract for the sale and purchase of real property, including
the rights to payments under such contracts, or any other lien on, or interest in, real property.

(f) "Recorded" means recorded in the office of the county recorder or registrar of titles,
as appropriate for the real property described in the instrument to be recorded.

(g) "State agency" means the Department of Human Services or any successor agency.

(h) "Transfer on death deed" means a deed authorized under this section.

Subd. 2.

Effect of transfer on death deed.

A deed that conveys or assigns an interest
in real property, to a grantee beneficiary and that expressly states that the deed is only
effective on the death of one or more of the grantor owners, transfers the interest to the
grantee beneficiary upon the death of the grantor owner upon whose death the conveyance
or transfer is stated to be effective, but subject to the survivorship provisions and requirements
of section 524.2-702. new text begin Until a transfer on death deed becomes effective, it has no effect on
title to the real property described in the deed, but it does create an insurable interest in the
real property in favor of the designated grantee beneficiary or beneficiaries for purposes of
insuring the real property against loss or damage that occurs on or after the transfer on death
deed becomes effective. new text end A transfer on death deed must comply with all provisions of
Minnesota law applicable to deeds of real property including, but not limited to, the
provisions of sections 507.02, 507.24, 507.34, 508.48, and 508A.48. If a spouse who is
neither a grantor owner nor an owner joins in the execution of, or consents in writing to,
the transfer on death deed, such joinder or consent shall be conclusive proof that upon the
transfer becoming effective, the spouse no longer has or can claim any statutory interest or
other marital interest in the interest in real property transferred by the transfer on death deed.
However, such transfer shall remain an interest as identified in section 256B.15 for purposes
of complying with and satisfying any claim or lien as authorized by subdivision 3.

Subd. 3.

Rights of creditors and rights of state and county under sections 246.53,
256B.15, 256D.16, 261.04, and 514.981.

The interest transferred to a beneficiary under a
transfer on death deed after the death of a grantor owner is transferred subject to all effective
conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges,
judgments, tax liens, and any other matters or encumbrances to which the interest was
subject on the date of death of the grantor owner, upon whose death the transfer becomes
effective including, but not limited to, any claim by a surviving spouse who did not join in
the execution of, or consent in writing to, the transfer on death deed, and any claim or lien
by the state or county agency authorized by sections 246.53, 256B.15, 256D.16, 261.04,
and 514.981, if other assets of the deceased grantor's estate are insufficient to pay the amount
of any such claim. A beneficiary to whom the interest is transferred after the death of a
grantor owner shall be liable to account to the state or county agency with a claim or lien
authorized by section 246.53, 256B.15, 256D.16, 261.04, or 514.981, to the extent necessary
to discharge any such claim remaining unpaid after application of the assets of the deceased
grantor owner's estate, but such liability shall be limited to the value of the interest transferred
to the beneficiary. To establish compliance with this subdivision and subdivision 23, the
beneficiary must record a clearance certificate issued in accordance with subdivision 23 in
each county in which the real property described in the transfer on death deed is located.

Subd. 4.

Multiple grantee beneficiaries.

A transfer on death deed may designate multiple
grantee beneficiaries to take title as joint tenants, as tenants in common or in any other form
of ownership or tenancy that is valid under the laws of this state. new text begin If a grantee joint tenant
dies before the grantor owner upon whose death the transfer occurs and no successor
beneficiary for the deceased grantee is designated in the transfer on death deed, the surviving
joint tenants are the successors and no interest lapses.
new text end

Subd. 5.

Successor grantee beneficiaries.

A transfer on death deed may designate one
or more successor grantee beneficiaries or a class of successor grantee beneficiaries, or
both. If the transfer on death deed designates successor grantee beneficiaries or a class of
successor grantee beneficiaries, the deed shall state the condition under which the interest
of the successor grantee beneficiaries would vest.

Subd. 6.

Multiple joint tenant grantors.

If an interest in real property is owned as joint
tenants, a transfer on death deed executed by all of the owners and, if required by section
507.02, their respective spouses, if any, that conveys an interest in real property to one or
more grantee beneficiaries transfers the interest to the grantee beneficiary or beneficiaries
effective only after the death of the last surviving grantor owner. If the last surviving joint
tenant owner did not execute the transfer on death deed, the deed is ineffective to transfer
any interest and the deed is void. An estate in joint tenancy is not severed or affected by the
subsequent execution of a transfer on death deed and the right of a surviving joint tenant
owner who did not execute the transfer on death deed shall prevail over a grantee beneficiary
named in a transfer on death deed unless the deed specifically states that it severs the joint
tenancy ownership.

Subd. 7.

Execution by attorney-in-fact.

A transfer on death deed may be executed by
a duly appointed attorney-in-fact pursuant to a power of attorney which grants the
attorney-in-fact the authority to execute deeds.

Subd. 8.

Recording requirements and authorization.

A transfer on death deed is valid
if the deed is recorded in a county in which at least a part of the real property described in
the deed is located and is recorded before the death of the grantor owner upon whose death
the conveyance or transfer is effective. new text begin Notwithstanding the definition of recorded under
subdivision 1, if the real property is registered property, a transfer on death deed that was
recorded incorrectly or incompletely is valid if the deed was recorded before the death of
the grantor owner in the office of the county recorder or the registrar of titles in a county
in which at least part of the real property is located, and is memorialized on the certificate
of title after death. new text end A transfer on death deed is not effective for purposes of section 507.34,
508.47, or 508A.47 until the deed is new text begin properly new text end recorded in the county in which the real
property is located. When a transfer on death deed is presented for recording, no certification
by the county auditor as to transfer of ownership and current and delinquent taxes shall be
required or made and the transfer on death deed shall not be required to be accompanied
by a certificate of real estate value. A transfer on death deed that otherwise satisfies all
statutory requirements for recording may be recorded and shall be accepted for recording
in the county in which the property described in the deed is located. If any part of the property
described in the transfer on death deed is registered property, the registrar of titles shall
accept the transfer on death deed for recording only if at least one of the grantors who
executes the transfer on death deed appears of record to have an ownership interest or other
interest in the real property described in the deed. No certification or approval of a transfer
on death deed shall be required of the examiner of titles prior to recording of the deed in
the office of the registrar of titles.

Subd. 9.

Deed to trustee or other entity.

A transfer on death deed may transfer an
interest in real property to the trustee of an inter vivos trust even if the trust is revocable, to
the trustee of a testamentary trust or to any other entity legally qualified to hold title to real
property under the laws of this state.

Subd. 10.

Revocation or modification of transfer on death deed.

(a) A transfer on
death deed may be revoked at any time by the grantor owner or, if there is more than one
grantor owner, by any of the grantor owners. A revocation revokes the transfer on death
deed in its entirety. To be effective, the revocation must be recorded in a county in which
at least a part of the real property is located before the death of the grantor owner or owners
who execute the revocation. new text begin Notwithstanding the definition of recorded under subdivision
1, if the real property is registered property, a revocation that was recorded incorrectly or
incompletely is effective if it was recorded before the death of the grantor owner in the
office of the county recorder or the registrar of titles in a county in which at least part of
the real property is located, and is memorialized on the certificate of title after death. new text end The
revocation is not effective for purposes of section 507.34, 508.47, or 508A.47 until the
revocation is new text begin properly new text end recorded in a county in which the real property is located.

(b) If a grantor owner conveys to a third party, subsequent to the recording of the transfer
on death deed, by means other than a transfer on death deed, all or a part of such grantor
owner's interest in the property described in the transfer on death deed, no transfer of the
conveyed interest shall occur on such grantor owner's death and the transfer on death deed
shall be ineffective as to the conveyed or transferred interests, but the transfer on death deed
remains effective with respect to the conveyance or transfer on death of any other interests
described in the transfer on death deed owned by the grantor owner at the time of the grantor
owner's death.

(c) A transfer on death deed is a "governing instrument" within the meaning of section
524.2-804 and, except as may otherwise be specifically provided for in the transfer on death
deed, is subject to the same provisions as to revocation, revival, and nonrevocation set forth
in section 524.2-804.

Subd. 11.

Antilapse; deceased beneficiary; words of survivorship.

(a) new text begin Except when
a successor grantee beneficiary is designated in the transfer on death deed for the grantee
beneficiary who did not survive the grantor owner, new text end if a grantee beneficiary who is a
grandparent or lineal descendant of a grandparent of the grantor owner fails to survive the
grantor owner, the issue of the deceased grantee beneficiary who survive the grantor owner
take in place of the deceased grantee beneficiary. If they are all of the same degree of kinship
to the deceased grantee beneficiary, they take equally. If they are of unequal degree, those
of more remote degree take by right of representation.

(b) For the purposes of this subdivision, words of survivorship such as, in a conveyance
to an individual, "if he or she survives me," or, in a class gift, to "my surviving children,"
are a sufficient indication of intent to condition the conveyance or transfer upon the
beneficiary surviving the grantor owner.

new text begin (c) When issue of a deceased grantee beneficiary or members of a class take in place of
the named grantee beneficiary pursuant to subdivision 5 or paragraph (a) or (b) or when a
beneficiary dies and has no issue under paragraph (a), an affidavit of survivorship stating
the names and shares of the beneficiaries or stating that a deceased beneficiary had no issue
is not conclusive and a court order made in accordance with Minnesota probate law
determining the beneficiaries and shares must also be recorded.
new text end

Subd. 12.

Lapse.

If all beneficiaries and all successor beneficiaries, if any, designated
in a transfer on death deed, and also all successor beneficiaries who would take under the
antilapse provisions of subdivision 11, fail to survive the grantor owner or the last survivor
of the grantor owners if there are multiple grantor owners, if the beneficiary is a trust which
has been revoked prior to the grantor owner's death, or if the beneficiary is an entity no
longer in existence at the grantor owner's death, no transfer shall occur and the transfer on
death deed is void.

Subd. 13.

Multiple transfer on death deeds.

If a grantor owner executes and records
more than one transfer on death deed conveying the same interest in real property or a
greater interest in the real property, new text begin or conveying part of the property in the earlier transfer
on death deed, new text end the transfer on death deed that has the latest acknowledgment date and that
is recorded before the death of the grantor owner upon whose death the conveyance or
transfer is conditioned is the effective transfer on death deed and all other transfer on death
deeds, if any, executed by the grantor owner or the grantor owners are ineffective to transfer
any interest and are void new text begin , except that if the later transfer on death deed included only part
of the land of the earlier deed, the earlier deed is effective for the lands not included in the
subsequent deed, absent language to the contrary in the subsequent deed new text end .

Subd. 14.

Nonademption; unpaid proceeds of sale, condemnation, or insurance;
sale by conservator or guardian.

If at the time of the death of the grantor owner upon
whose death the conveyance or transfer is stated to be effective, the grantor owner did not
own a part or all of the real property described in the transfer on death deed, no conveyance
or transfer to the beneficiary of the nonowned part of the real property shall occur upon the
death of the grantor owner and the transfer on death deed is void as to the nonowned part
of the real property, but the beneficiary shall have the same rights to unpaid proceeds of
sale, condemnation or insurance, and, if sold by a conservator or guardian of the grantor
owner during the grantor owner's lifetime, the same rights to a general pecuniary devise, as
that of a specific devisee as set forth in section 524.2-606.

Subd. 15.

Nonexoneration.

Except as otherwise provided in subdivision 3, a conveyance
or transfer under a transfer on death deed passes the described property subject to any
mortgage or security interest existing at the date of death of the grantor owner, without right
of exoneration, regardless of any statutory obligations to pay the grantor owner's debts upon
death and regardless of a general directive in the grantor owner's will to pay debts.

Subd. 16.

Disclaimer by beneficiary.

A grantee beneficiary's interest under a transfer
on death deed may be disclaimed as provided in sections 524.2-1101 to 524.2-1116, or as
otherwise provided by law.

Subd. 17.

Effect on other conveyances.

This section does not prohibit other methods
of conveying property that are permitted by law and that have the effect of postponing
ownership or enjoyment of an interest in real property until the death of the owner. This
section does not invalidate any deed that is not a transfer on death deed and that is otherwise
effective to convey title to the interests and estates described in the deed that is not recorded
until after the death of the owner.

Subd. 18.

Notice, consent, and delivery not required.

The signature, consent or
agreement of, or notice to, a grantee beneficiary under a transfer on death deed, or delivery
of the transfer on death deed to the grantee beneficiary, is not required for any purpose
during the lifetime of the grantor owner.

Subd. 19.

Nonrevocation by will.

A transfer on death deed that is executed,
acknowledged, and recorded in accordance with this section is not revoked by the provisions
of a will.

Subd. 20.

Proof of survivorship and clearance from public assistance claims and
liens; recording.

An affidavit of identity and survivorship with a certified copy of a record
of death as an attachment may be combined with a clearance certificate under this section
and the combined documents may be recorded separately or as one document in each county
in which the real estate described in the clearance certificate is located. The affidavit must
include the name and mailing address of the person to whom future property tax statements
should be sent. The affidavit, record of death, and clearance certificate, whether combined
or separate, shall be prima facie evidence of the facts stated in each, and the registrar of
titles may rely on the statements to transfer title to the property described in the clearance
certificate new text begin , except in cases where a court order is required pursuant to the provisions of
subdivision 11, paragraph (c) new text end .

Subd. 21.

After-acquired property.

Except as provided in this subdivision, a transfer
on death deed is not effective to transfer any interest in real property acquired by a grantor
owner subsequent to the date of signing of a transfer on death deed. A grantor owner may
provide by specific language in a transfer on death deed that the transfer on death deed will
apply to any interest in the described property acquired by the grantor owner after the signing
or recording of the deed.

Subd. 22.

Anticipatory alienation prohibited.

The interest of a grantee beneficiary
under a transfer on death deed which has not yet become effective is not subject to alienation;
assignment; encumbrance; appointment or anticipation by the beneficiary; garnishment;
attachment; execution or bankruptcy proceedings; claims for alimony, support, or
maintenance; payment of other obligations by any person against the beneficiary; or any
other transfer, voluntary or involuntary, by or from any beneficiary.

Subd. 23.

Clearance for public assistance claims and liens.

Any person claiming an
interest in real property conveyed or transferred by a transfer on death deed, or the person's
attorney or other agent, may apply to the county agency in the county in which the real
property is located for a clearance certificate for the real property described in the transfer
on death deed. The application for a clearance certificate and the clearance certificate must
contain the legal description of each parcel of property covered by the clearance certificate.
The county agency shall provide a sufficient number of clearance certificates to allow a
clearance certificate to be recorded in each county in which the real property described in
the transfer on death deed is located. The real property described in the clearance certificate
is bound by any conditions or other requirements imposed by the county agency as specified
in the clearance certificate. If the real property is registered property, a new certificate of
title must not be issued until the clearance certificate is recorded. If the clearance certificate
shows the continuation of a medical assistance claim or lien after issuance of the clearance
certificate, the real property remains subject to the claim or lien. If the real property is
registered property, the clearance certificate must be carried forward as a memorial in any
new certificate of title. The application shall contain the same information and shall be
submitted, processed, and resolved in the same manner and on the same terms and conditions
as provided in section 525.313 for a clearance certificate in a decree of descent proceeding,
except that a copy of a notice of hearing does not have to accompany the application. The
application may contain a statement that the applicant, after reasonably diligent inquiry, is
not aware of the existence of a predeceased spouse or the existence of a claim which could
be recovered under section 246.53, 256B.15, 256D.16, 261.04, or 514.981. If the county
agency determines that a claim or lien exists under section 246.53, 256B.15, 256D.16,
261.04, or 514.981, the provisions of section 525.313 shall apply to collection, compromise,
and settlement of the claim or lien. A person claiming an interest in real property transferred
or conveyed by a transfer on death deed may petition or move the district court, as
appropriate, in the county in which the real property is located or in the county in which a
probate proceeding affecting the estate of the grantor of the transfer on death deed is pending,
for an order allowing sale of the real property free and clear of any public assistance claim
or lien but subject to disposition of the sale proceeds as provided in section 525.313. On a
showing of good cause and subject to such notice as the court may require, the court without
hearing may issue an order allowing the sale free and clear of any public assistance claim
or lien on such terms and conditions as the court deems advisable to protect the interests of
the state or county agency.

Subd. 24.

Form of transfer on death deed.

A transfer on death deed may be substantially
in the following form:

Transfer on Death Deed

I (we) ................................... (grantor owner or owners and spouses, if any, with
marital status designated), grantor(s), hereby convey(s) and quitclaim(s) to
.................................. (grantee beneficiary, whether one or more) effective (check
only one of the following)

.... on the death of the grantor owner, if only one grantor is named above, or on the
death of the last of the grantor owners to die, if more than one grantor owner is named
above, or

.... on the death of (name of grantor owner)

........................................... (must be one of the grantor owners named above), the
following described real property:

(Legal description)

If checked, the following optional statement applies:

....When effective, this instrument conveys any and all interests in the described real
property acquired by the grantor owner(s) before, on, or after the date of this
instrument.

		.
		(Signature of grantor(s))
	(acknowledgment)

Subd. 25.

Form of instrument of revocation.

An instrument of revocation may be
substantially in the following form:

Revocation of Transfer on Death Deed

The undersigned hereby revokes the transfer on death deed recorded on .........., ....,
as Document No. .......... (or in Book .......... of ........., Page .....) in the office of the
(County Recorder) (Registrar of Titles) of ............ County, Minnesota, affecting real
property legally described as follows:

	(legal description)
		Dated:
		.
		Signature
	(acknowledgment)

Subd. 26.

Jurisdiction.

In counties where the district court has a probate division, new text begin the
application of subdivision 11 or other issues of interpretation or validity of the transfer on
death deed, and new text end actions to enforce a medical assistance lien or claim against real property
described in a transfer on death deed and any matter raised in connection with enforcement
shall be determined in the probate division. deleted text begin Notwithstanding any other law to the contrary,
the provisions of section 256B.15 shall apply to any proceeding to enforce a medical
assistance lien or claim under chapter 524 or 525. deleted text end In other counties, the district court shall
have jurisdiction to determine any matter affecting real property purporting to be transferred
by a transfer on death deed. new text begin Notwithstanding any other law to the contrary, the provisions
of section 256B.15 shall apply to any proceeding to enforce a medical assistance lien or
claim under chapter 524 or 525.
new text end

Sec. 5.

new text begin [507.072] PROPERTY INSURANCE FOR GRANTEE BENEFICIARIES
OF TRANSFER ON DEATH DEEDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
apply unless the context indicates otherwise.
new text end

new text begin (b) "Grantee beneficiary" has the meaning given in section 507.071, subdivision 1.
new text end

new text begin (c) "Insurance policy" means an insurance policy governed by chapter 65A.
new text end

new text begin (d) "Transfer on death deed" means a deed described in section 507.071.
new text end

new text begin (e) "Grantor owner" has the meaning given in section 507.071, subdivision 1.
new text end

new text begin (f) "Extended coverage" or "temporary extended coverage" means insurance coverage
continuing beyond the death of the named insured.
new text end

new text begin Subd. 2. new text end

new text begin Insurance policy to include grantee beneficiary. new text end

new text begin An insurer providing an
insurance policy on real property transferred by a transfer on death deed shall provide
temporary extended coverage on the real property to the designated grantee beneficiary for
a period commencing on the date of death of the grantor owner and ending when the grantee
beneficiary replaces the insurance policy on the insured property with an insurance policy
or the expiration of the time limitations set forth in subdivision 4, whichever occurs first.
new text end

new text begin Subd. 3. new text end

new text begin Notice to the insurer. new text end

new text begin To obtain temporary extended coverage for a transfer
on death deed as provided in this section, the grantor owner must notify the insurer of the
existence of a transfer on death deed. The notice shall include the names and contact
information of all designated grantee beneficiaries.
new text end

new text begin Subd. 4. new text end

new text begin Coverage extended. new text end

new text begin The coverage extended under this section applies only
with respect to the insurance policy insuring the real property of the grantor owner. The
period of extended coverage shall not exceed 30 days from the date of the grantor owner's
death or the expiration date of the insurance policy, whichever is less. An insurer is not
required to provide notice to the grantee beneficiary for cancellation of coverage following
the shorter of the 30 days or expiration date of the policy or the placement of replacement
insurance coverage.
new text end

new text begin Subd. 5. new text end

new text begin Proof demanded; policy conditions. new text end

new text begin Before making any payment for a claim
under this section, the insurer may require proof that the claimant is a grantee beneficiary
under a transfer on death deed, the transfer on death deed was recorded as provided in
section 507.071, and that an affidavit of survivorship and death certificate of the grantor
owner was recorded as provided in section 507.071. The grantee beneficiary shall comply
with the conditions of the policy.
new text end

new text begin Subd. 6. new text end

new text begin Insurable interest. new text end

new text begin A grantee beneficiary does not hold an insurable interest
in the real property described in a transfer on death deed prior to the death of the grantor
owner. Any claim on the insured real property described in a transfer on death deed initiated
before the death of the grantor owner or the death benefits associated with the policy prior
to the death of the grantor owner shall be settled with the estate of the grantor owner, not
with the grantee beneficiary. A grantee beneficiary is not entitled to recover benefits under
an insurance policy extended as provided in this section in an amount greater than the grantee
beneficiary's insurable interest at the time of loss or damage. A grantee beneficiary is not
entitled to any amounts paid out in prior claims on the property. If the transfer on death
deed designates multiple grantee beneficiaries, nothing in this section requires the insurer
to pay an amount for loss or damage to the insured real property that exceeds the amount
that would be owed to the grantor owner if the grantor owner was living at the time of loss
or damage.
new text end

new text begin Subd. 7. new text end

new text begin Warnings on transfer on death deeds. new text end

new text begin (a) On or after August 1 of the year
of the effective date of this section, a transfer on death deed shall contain the following
warnings in substantially the following form:
new text end

new text begin "Warning to Grantor Owner: Temporary extended coverage of any fire and casualty
insurance policy on the property under Minnesota Statutes, chapter 65A, exists only if the
grantor owner has given notice to the insurer under Minnesota Statutes, section 507.072,
subdivision 3, including the existence of a transfer on death deed and the names and contact
information of all designated grantee beneficiaries. Any temporary extended coverage
terminates on the earliest of (1) 30 days after the date of the grantor owner's death, (2) the
expiration date of the policy, or (3) upon placement of a replacement insurance policy.
new text end

new text begin Warning to Grantee Beneficiary: A grantee beneficiary shall not presume insurance
coverage continues after the death of the grantor owner. Upon the death of the grantor
owner, the grantee beneficiary should determine whether the provisions of Minnesota
Statutes, section 507.072, apply and consult with an insurance agent or attorney."
new text end

new text begin (b) The failure to include warnings in a transfer on death deed in accordance with this
subdivision shall not invalidate the transfer on death deed or affect recording of the transfer
on death deed.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 4 and 5 are effective on the day following final enactment and apply to insurance
policies issued or renewed in Minnesota on or after August 1, 2024. Sections 4 and 5 do
not apply to insurance policies issued or renewed prior to August 1, 2024, or to transfer on
death deeds recorded prior to that date unless the grantor owner provides the notice specified
by section 5, subdivision 3.
new text end

ARTICLE 2

FINANCIAL INSTITUTIONS

Section 1.

new text begin [46A.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

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

new text begin Subd. 2. new text end

new text begin Authorized user. new text end

new text begin "Authorized user" means any employee, contractor, agent,
or other person who: (1) participates in a financial institution's business operations; and (2)
is authorized to access and use any of the financial institution's information systems and
data.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin (a) "Consumer" means an individual who obtains or has obtained
from a financial institution a financial product or service that is used primarily for personal,
family, or household purposes, or is used by the individual's legal representative. Consumer
includes but is not limited to an individual who:
new text end

new text begin (1) applies to a financial institution for credit for personal, family, or household purposes,
regardless of whether the credit is extended;
new text end

new text begin (2) provides nonpublic personal information to a financial institution in order to obtain
a determination whether the individual qualifies for a loan used primarily for personal,
family, or household purposes, regardless of whether the loan is extended;
new text end

new text begin (3) provides nonpublic personal information to a financial institution in connection with
obtaining or seeking to obtain financial, investment, or economic advisory services, regardless
of whether the financial institution establishes a continuing advisory relationship with the
individual; or
new text end

new text begin (4) has a loan for personal, family, or household purposes in which the financial institution
has ownership or servicing rights, even if the financial institution or one or more other
institutions that hold ownership or servicing rights in conjunction with the financial institution
hires an agent to collect on the loan.
new text end

new text begin (b) Consumer does not include an individual who:
new text end

new text begin (1) is a consumer of another financial institution that uses a different financial institution
to act solely as an agent for, or provide processing or other services to, the consumer's
financial institution;
new text end

new text begin (2) designates a financial institution solely for the purposes to act as a trustee for a trust;
new text end

new text begin (3) is the beneficiary of a trust for which the financial institution serves as trustee; or
new text end

new text begin (4) is a participant or a beneficiary of an employee benefit plan that the financial
institution sponsors or for which the financial institution acts as a trustee or fiduciary.
new text end

new text begin Subd. 5. new text end

new text begin Continuing relationship. new text end

new text begin (a) "Continuing relationship" means a consumer:
new text end

new text begin (1) has a credit or investment account with a financial institution;
new text end

new text begin (2) obtains a loan from a financial institution;
new text end

new text begin (3) purchases an insurance product from a financial institution;
new text end

new text begin (4) holds an investment product through a financial institution, including but not limited
to when the financial institution acts as a custodian for securities or for assets in an individual
retirement arrangement;
new text end

new text begin (5) enters into an agreement or understanding with a financial institution whereby the
financial institution undertakes to arrange or broker a home mortgage loan, or credit to
purchase a vehicle, for the consumer;
new text end

new text begin (6) enters into a lease of personal property on a nonoperating basis with a financial
institution;
new text end

new text begin (7) obtains financial, investment, or economic advisory services from a financial
institution for a fee;
new text end

new text begin (8) becomes a financial institution's client to obtain tax preparation or credit counseling
services from the financial institution;
new text end

new text begin (9) obtains career counseling while: (i) seeking employment with a financial institution
or the finance, accounting, or audit department of any company; or (ii) employed by a
financial institution or department of any company;
new text end

new text begin (10) is obligated on an account that a financial institution purchases from another financial
institution, regardless of whether the account is in default when purchased, unless the
financial institution does not locate the consumer or attempt to collect any amount from the
consumer on the account;
new text end

new text begin (11) obtains real estate settlement services from a financial institution; or
new text end

new text begin (12) has a loan for which a financial institution owns the servicing rights.
new text end

new text begin (b) Continuing relationship does not include situations where:
new text end

new text begin (1) the consumer obtains a financial product or service from a financial institution only
in isolated transactions, including but not limited to: (i) using a financial institution's
automated teller machine to withdraw cash from an account at another financial institution;
(ii) purchasing a money order from a financial institution; (iii) cashing a check with a
financial institution; or (iv) making a wire transfer through a financial institution;
new text end

new text begin (2) a financial institution sells the consumer's loan and does not retain the rights to service
the loan;
new text end

new text begin (3) a financial institution sells the consumer airline tickets, travel insurance, or traveler's
checks in isolated transactions;
new text end

new text begin (4) the consumer obtains onetime personal or real property appraisal services from a
financial institution; or
new text end

new text begin (5) the consumer purchases checks for a personal checking account from a financial
institution.
new text end

new text begin Subd. 6. new text end

new text begin Customer. new text end

new text begin "Customer" means a consumer who has a customer relationship
with a financial institution.
new text end

new text begin Subd. 7. new text end

new text begin Customer information. new text end

new text begin "Customer information" means any record containing
nonpublic personal information about a financial institution's customer, whether the record
is in paper, electronic, or another form, that is handled or maintained by or on behalf of the
financial institution or the financial institution's affiliates.
new text end

new text begin Subd. 8. new text end

new text begin Customer relationship. new text end

new text begin "Customer relationship" means a continuing relationship
between a consumer and a financial institution under which the financial institution provides
to the consumer one or more financial products or services that are used primarily for
personal, family, or household purposes.
new text end

new text begin Subd. 9. new text end

new text begin Encryption. new text end

new text begin "Encryption" means the transformation of data into a format that
results in a low probability of assigning meaning without the use of a protective process or
key, consistent with current cryptographic standards and accompanied by appropriate
safeguards for cryptographic key material.
new text end

new text begin Subd. 10. new text end

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

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

new text begin Subd. 11. new text end

new text begin Financial product or service. new text end

new text begin "Financial product or service" means any
product or service that a financial holding company could offer by engaging in a financial
activity under section 4(k) of the Bank Holding Company Act of 1956, United States Code,
title 12, section 1843(k). Financial product or service includes a financial institution's
evaluation or brokerage of information that the financial institution collects in connection
with a request or an application from a consumer for a financial product or service.
new text end

new text begin Subd. 12. new text end

new text begin Financial institution. new text end

new text begin "Financial institution" means a consumer small loan
lender under section 47.60, a person owning or maintaining electronic financial terminals
under section 47.62, a trust company under chapter 48A, a loan and thrift company under
chapter 53, a currency exchange under chapter 53A, a money transmitter under chapter 53B,
a sales finance company under chapter 53C, a regulated loan lender under chapter 56, a
residential mortgage originator or servicer under chapter 58, a student loan servicer under
chapter 58B, a credit service organization under section 332.54, a debt management service
provider or person providing debt management services under chapter 332A, or a debt
settlement service provider or person providing debt settlement services under chapter 332B.
new text end

new text begin Subd. 13. new text end

new text begin Information security program. new text end

new text begin "Information security program" means the
administrative, technical, or physical safeguards a financial institution uses to access, collect,
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle customer
information.
new text end

new text begin Subd. 14. new text end

new text begin Information system. new text end

new text begin "Information system" means a discrete set of electronic
information resources organized to collect, process, maintain, use, share, disseminate, or
dispose of electronic information, as well as any specialized system, including but not
limited to industrial process controls systems, telephone switching and private branch
exchange systems, and environmental controls systems, that contains customer information
or that is connected to a system that contains customer information.
new text end

new text begin Subd. 15. new text end

new text begin Multifactor authentication. new text end

new text begin "Multifactor authentication" means authentication
through verification of at least two of the following factors:
new text end

new text begin (1) knowledge factors, including but not limited to a password;
new text end

new text begin (2) possession factors, including but not limited to a token; or
new text end

new text begin (3) inherence factors, including but not limited to biometric characteristics.
new text end

new text begin Subd. 16. new text end

new text begin Nonpublic personal information. new text end

new text begin (a) "Nonpublic personal information"
means:
new text end

new text begin (1) personally identifiable financial information; or
new text end

new text begin (2) any list, description, or other grouping of consumers, including publicly available
information pertaining to the list, description, or other grouping of consumers, that is derived
using personally identifiable financial information that is not publicly available.
new text end

new text begin (b) Nonpublic personal information includes but is not limited to any list of individuals'
names and street addresses that is derived in whole or in part using personally identifiable
financial information that is not publicly available, including account numbers.
new text end

new text begin (c) Nonpublic personal information does not include:
new text end

new text begin (1) publicly available information, except as included on a list described in paragraph
(a), clause (2);
new text end

new text begin (2) any list, description, or other grouping of consumers, including publicly available
information pertaining to the list, description, or other grouping of consumers, that is derived
without using any personally identifiable financial information that is not publicly available;
or
new text end

new text begin (3) any list of individuals' names and addresses that contains only publicly available
information, is not derived in whole or in part using personally identifiable financial
information that is not publicly available, and is not disclosed in a manner that indicates
that any individual on the list is the financial institution's consumer.
new text end

new text begin Subd. 17. new text end

new text begin Notification event. new text end

new text begin "Notification event" means the acquisition of unencrypted
customer information without the authorization of the individual to which the information
pertains. Customer information is considered unencrypted for purposes of this subdivision
if the encryption key was accessed by an unauthorized person. Unauthorized acquisition is
presumed to include unauthorized access to unencrypted customer information unless the
financial institution has reliable evidence showing that there has not been, or could not
reasonably have been, unauthorized acquisition of customer information.
new text end

new text begin Subd. 18. new text end

new text begin Penetration testing. new text end

new text begin "Penetration testing" means a test methodology in which
assessors attempt to circumvent or defeat the security features of an information system by
attempting to penetrate databases or controls from outside or inside a financial institution's
information systems.
new text end

new text begin Subd. 19. new text end

new text begin Personally identifiable financial information. new text end

new text begin (a) "Personally identifiable
financial information" means any information:
new text end

new text begin (1) a consumer provides to a financial institution to obtain a financial product or service;
new text end

new text begin (2) about a consumer resulting from any transaction involving a financial product or
service between a financial institution and a consumer; or
new text end

new text begin (3) a financial institution otherwise obtains about a consumer in connection with providing
a financial product or service to the customer.
new text end

new text begin (b) Personally identifiable financial information includes:
new text end

new text begin (1) information a consumer provides to a financial institution on an application to obtain
a loan, credit card, or other financial product or service;
new text end

new text begin (2) account balance information, payment history, overdraft history, and credit or debit
card purchase information;
new text end

new text begin (3) the fact that an individual is or has been a financial institution's customer or has
obtained a financial product or service from the financial institution;
new text end

new text begin (4) any information about a financial institution's consumer, if the information is disclosed
in a manner that indicates that the individual is or has been the financial institution's
consumer;
new text end

new text begin (5) any information that a consumer provides to a financial institution or that a financial
institution or a financial institution's agent otherwise obtains in connection with collecting
on or servicing a credit account;
new text end

new text begin (6) any information a financial institution collects through an Internet information
collecting device from a web server; and
new text end

new text begin (7) information from a consumer report.
new text end

new text begin (c) Personally identifiable financial information does not include:
new text end

new text begin (1) a list of customer names and addresses for an entity that is not a financial institution;
and
new text end

new text begin (2) information that does not identify a consumer, including but not limited to aggregate
information or blind data that does not contain personal identifiers, including account
numbers, names, or addresses.
new text end

new text begin Subd. 20. new text end

new text begin Publicly available information. new text end

new text begin (a) "Publicly available information" means
any information that a financial institution has a reasonable basis to believe is lawfully made
available to the general public from:
new text end

new text begin (1) federal, state, or local government records;
new text end

new text begin (2) widely distributed media; or
new text end

new text begin (3) disclosures to the general public that are required under federal, state, or local law.
new text end

new text begin (b) Publicly available information includes but is not limited to:
new text end

new text begin (1) with respect to government records, information in government real estate records
and security interest filings; and
new text end

new text begin (2) with respect to widely distributed media, information from a telephone book, a
television or radio program, a newspaper, or a website that is available to the general public
on an unrestricted basis. A website is not restricted merely because an Internet service
provider or a site operator requires a fee or a password, provided that access is available to
the general public.
new text end

new text begin (c) For purposes of this subdivision, a financial institution has a reasonable basis to
believe that information is lawfully made available to the general public if the financial
institution has taken steps to determine: (1) that the information is of the type that is available
to the general public; and (2) whether an individual can direct that the information not be
made available to the general public and, if so, that the financial institution's consumer has
not directed that the information not be made available to the general public. A financial
institution has a reasonable basis to believe that mortgage information is lawfully made
available to the general public if the financial institution determines the information is of
the type included on the public record in the jurisdiction where the mortgage would be
recorded. A financial institution has a reasonable basis to believe that an individual's
telephone number is lawfully made available to the general public if the financial institution
has located the telephone number in the telephone book or the consumer has informed the
financial institution that the telephone number is not unlisted.
new text end

new text begin Subd. 21. new text end

new text begin Qualified individual. new text end

new text begin "Qualified individual" means the individual designated
by a financial institution to oversee, implement, and enforce the financial institution's
information security program.
new text end

new text begin Subd. 22. new text end

new text begin Security event. new text end

new text begin "Security event" means an event resulting in unauthorized
access to, or disruption or misuse of: (1) an information system or information stored on an
information system; or (2) customer information held in physical form.
new text end

new text begin Subd. 23. new text end

new text begin Service provider. new text end

new text begin "Service provider" means any person or entity that receives,
maintains, processes, or otherwise is permitted access to customer information through the
service provider's provision of services directly to a financial institution that is subject to
this chapter.
new text end

Sec. 2.

new text begin [46A.02] SAFEGUARDING CUSTOMER INFORMATION; STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Information security program. new text end

new text begin (a) A financial institution must develop,
implement, and maintain a comprehensive information security program.
new text end

new text begin (b) The information security program must: (1) be written in one or more readily
accessible parts; and (2) contain administrative, technical, and physical safeguards that are
appropriate to the financial institution's size and complexity, the nature and scope of the
financial institution's activities, and the sensitivity of any customer information at issue.
new text end

new text begin (c) The information security program must include the elements set forth in section
46A.03 and must be reasonably designed to achieve the objectives of this chapter, as
established under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Objectives. new text end

new text begin The objectives of this chapter are to:
new text end

new text begin (1) ensure the security and confidentiality of customer information;
new text end

new text begin (2) protect against any anticipated threats or hazards to the security or integrity of
customer information; and
new text end

new text begin (3) protect against unauthorized access to or use of customer information that might
result in substantial harm or inconvenience to a customer.
new text end

Sec. 3.

new text begin [46A.03] ELEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to develop, implement, and maintain an information
security program, a financial institution must comply with this section.
new text end

new text begin Subd. 2. new text end

new text begin Qualified individual. new text end

new text begin (a) A financial institution must designate a qualified
individual responsible for overseeing, implementing, and enforcing the financial institution's
information security program. The qualified individual may be employed by the financial
institution, an affiliate, or a service provider.
new text end

new text begin (b) If a financial institution designates an individual employed by an affiliate or service
provider as the financial institution's qualified individual, the financial institution must:
new text end

new text begin (1) retain responsibility for complying with this chapter;
new text end

new text begin (2) designate a senior member of the financial institution's personnel to be responsible
for directing and overseeing the qualified individual's activities; and
new text end

new text begin (3) require the service provider or affiliate to maintain an information security program
that protects the financial institution in a manner that complies with the requirements of
this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Security risk assessment. new text end

new text begin (a) A financial institution must base the financial
institution's information security program on a risk assessment that:
new text end

new text begin (1) identifies reasonably foreseeable internal and external risks to the security,
confidentiality, and integrity of customer information that might result in the unauthorized
disclosure, misuse, alteration, destruction, or other compromise of customer information;
and
new text end

new text begin (2) assesses the sufficiency of any safeguards in place to control the risks identified
under clause (1).
new text end

new text begin (b) The risk assessment must be made in writing and must include:
new text end

new text begin (1) criteria to evaluate and categorize identified security risks or threats the financial
institution faces;
new text end

new text begin (2) criteria to assess the confidentiality, integrity, and availability of the financial
institution's information systems and customer information, including the adequacy of
existing controls in the context of the identified risks or threats the financial institution
faces; and
new text end

new text begin (3) requirements describing how:
new text end

new text begin (i) identified risks are mitigated or accepted based on the risk assessment; and
new text end

new text begin (ii) the information security program addresses the risks.
new text end

new text begin (c) A financial institution must periodically perform additional risk assessments that:
new text end

new text begin (1) reexamine the reasonably foreseeable internal and external risks to the security,
confidentiality, and integrity of customer information that might result in the unauthorized
disclosure, misuse, alteration, destruction, or other compromise of customer information;
and
new text end

new text begin (2) reassess the sufficiency of any safeguards in place to control the risks identified
under clause (1).
new text end

new text begin Subd. 4. new text end

new text begin Risk control. new text end

new text begin A financial institution must design and implement safeguards to
control the risks the financial institution identifies through the risk assessment under
subdivision 3, including by:
new text end

new text begin (1) implementing and periodically reviewing access controls, including technical and,
as appropriate, physical controls to:
new text end

new text begin (i) authenticate and permit access only to authorized users to protect against the
unauthorized acquisition of customer information; and
new text end

new text begin (ii) limit an authorized user's access to only customer information that the authorized
user needs to perform the authorized user's duties and functions or, in the case of a customer,
to limit access to the customer's own information;
new text end

new text begin (2) identifying and managing the data, personnel, devices, systems, and facilities that
enable the financial institution to achieve business purposes in accordance with the business
purpose's relative importance to business objectives and the financial institution's risk
strategy;
new text end

new text begin (3) protecting by encryption all customer information held or transmitted by the financial
institution both in transit over external networks and at rest. To the extent a financial
institution determines that encryption of customer information either in transit over external
networks or at rest is infeasible, the financial institution may secure the customer information
using effective alternative compensating controls that have been reviewed and approved by
the financial institution's qualified individual;
new text end

new text begin (4) adopting: (i) secure development practices for in-house developed applications
utilized by the financial institution to transmit, access, or store customer information; and
(ii) procedures to evaluate, assess, or test the security of externally developed applications
the financial institution uses to transmit, access, or store customer information;
new text end

new text begin (5) implementing multifactor authentication for any individual that accesses any
information system, unless the financial institution's qualified individual has approved in
writing the use of a reasonably equivalent or more secure access control;
new text end

new text begin (6) developing, implementing, and maintaining procedures to securely dispose of
customer information in any format no later than two years after the last date the information
is used in connection with providing a product or service to the customer which relates,
unless: (i) the information is necessary for business operations or for other legitimate business
purposes; (ii) is otherwise required to be retained by law or regulation; or (iii) if targeted
disposal of the information is not reasonably feasible due to the manner in which the
information is maintained;
new text end

new text begin (7) periodically reviewing the financial institution's data retention policy to minimize
the unnecessary retention of data;
new text end

new text begin (8) adopting procedures for change management; and
new text end

new text begin (9) implementing policies, procedures, and controls designed to: (i) monitor and log the
activity of authorized users; and (ii) detect unauthorized access to, use of, or tampering with
customer information by authorized users.
new text end

new text begin Subd. 5. new text end

new text begin Testing and monitoring. new text end

new text begin (a) A financial institution must regularly test or
otherwise monitor the effectiveness of the safeguards' key controls, systems, and procedures,
including the controls, systems, and procedures that detect actual and attempted attacks on,
or intrusions into, information systems.
new text end

new text begin (b) For information systems, monitoring and testing must include continuous monitoring
or periodic penetration testing and vulnerability assessments. Absent effective continuous
monitoring or other systems to detect on an ongoing basis any changes in information
systems that may create vulnerabilities, a financial institution must conduct:
new text end

new text begin (1) annual penetration testing of the financial institution's information systems, based
on relevant identified risks in accordance with the risk assessment; and
new text end

new text begin (2) vulnerability assessments, including systemic scans or information systems reviews
that are reasonably designed to identify publicly known security vulnerabilities in the
financial institution's information systems based on the risk assessment, at least every six
months, whenever a material change to the financial institution's operations or business
arrangements occurs, and whenever the financial institution knows or has reason to know
circumstances exist that may have a material impact on the financial institution's information
security program.
new text end

new text begin Subd. 6. new text end

new text begin Internal policies and procedures. new text end

new text begin A financial institution must implement
policies and procedures to ensure that the financial institution's personnel are able to enact
the financial institution's information security program by:
new text end

new text begin (1) providing the financial institution's personnel with security awareness training that
is updated as necessary to reflect risks identified by the risk assessment;
new text end

new text begin (2) utilizing qualified information security personnel employed by the financial institution,
an affiliate, or a service provider sufficient to manage the financial institution's information
security risks and to perform or oversee the information security program;
new text end

new text begin (3) providing information security personnel with security updates and training sufficient
to address relevant security risks; and
new text end

new text begin (4) verifying that key information security personnel take steps to maintain current
knowledge of changing information security threats and countermeasures.
new text end

new text begin Subd. 7. new text end

new text begin Provider oversight. new text end

new text begin A financial institution must oversee service providers by:
new text end

new text begin (1) taking reasonable steps to select and retain service providers that are capable of
maintaining appropriate safeguards for the customer information at issue;
new text end

new text begin (2) requiring by contract the financial institution's service providers to implement and
maintain appropriate safeguards; and
new text end

new text begin (3) periodically assessing the financial institution's service providers based on the risk
the service providers present and the continued adequacy of the service providers' safeguards.
new text end

new text begin Subd. 8. new text end

new text begin Information security program; evaluation; adjustment. new text end

new text begin A financial institution
must evaluate and adjust the financial institution's information security program to reflect:
(1) the results of the testing and monitoring required under subdivision 5; (2) any material
changes to the financial institution's operations or business arrangements; (3) the results of
risk assessments performed under subdivision 3, paragraph (c); or (4) any other circumstances
that the financial institution knows or has reason to know may have a material impact on
the financial institution's information security program.
new text end

new text begin Subd. 9. new text end

new text begin Incident response plan. new text end

new text begin A financial institution must establish a written incident
response plan designed to promptly respond to and recover from any security event materially
affecting the confidentiality, integrity, or availability of customer information the financial
institution controls. An incident response plan must address:
new text end

new text begin (1) the goals of the incident response plan;
new text end

new text begin (2) the internal processes to respond to a security event;
new text end

new text begin (3) clear roles, responsibilities, and levels of decision making authority;
new text end

new text begin (4) external and internal communications and information sharing;
new text end

new text begin (5) requirements to remediate any identified weaknesses in information systems and
associated controls;
new text end

new text begin (6) documentation and reporting regarding security events and related incident response
activities; and
new text end

new text begin (7) evaluation and revision of the incident response plan as necessary after a security
event.
new text end

new text begin Subd. 10. new text end

new text begin Annual report. new text end

new text begin (a) A financial institution must require the financial institution's
qualified individual to report at least annually in writing to the financial institution's board
of directors or equivalent governing body. If a board of directors or equivalent governing
body does not exist, the report under this subdivision must be timely presented to a senior
officer responsible for the financial institution's information security program.
new text end

new text begin (b) The report made under this subdivision must include the following information:
new text end

new text begin (1) the overall status of the financial institution's information security program, including
compliance with this chapter and associated administrative rules; and
new text end

new text begin (2) material matters related to the financial institution's information security program,
including but not limited to addressing issues pertaining to: (i) the risk assessment; (ii) risk
management and control decisions; (iii) service provider arrangements; (iv) testing results;
(v) security events or violations and management's responses to the security event or
violation; and (vi) recommendations for changes in the information security program.
new text end

new text begin Subd. 11. new text end

new text begin Business continuity; disaster recovery. new text end

new text begin A financial institution must establish
a written plan addressing business continuity and disaster recovery.
new text end

Sec. 4.

new text begin [46A.04] EXCEPTIONS AND EXEMPTIONS.
new text end

new text begin (a) The requirements under section 46A.03, subdivisions 3; 5, paragraph (a); 9; and 10,
do not apply to financial institutions that maintain customer information concerning fewer
than 5,000 consumers.
new text end

new text begin (b) This chapter does not apply to credit unions or federally insured depository
institutions.
new text end

Sec. 5.

new text begin [46A.05] ALTERATION OF FEDERAL REGULATION.
new text end

new text begin (a) If an amendment to Code of Federal Regulations, title 16, part 314, results in a
complete lack of federal regulations in the area, the version of the state requirements in
effect at the time of the amendment remain in effect for two years from the date the
amendment becomes effective.
new text end

new text begin (b) During the time period under paragraph (a), the department must adopt replacement
administrative rules as necessary and appropriate.
new text end

Sec. 6.

new text begin [46A.06] NOTIFICATION EVENT.
new text end

new text begin Subdivision 1. new text end

new text begin Notification requirement. new text end

new text begin (a) Upon discovering a notification event as
described in subdivision 2, if the notification event involves the information of at least 500
consumers, a financial institution must notify the commissioner without undue delay, but
no later than 45 days after the date the event is discovered. The notice must be made (1) in
a format specified by the commissioner, and (2) electronically on a form located on the
department's website.
new text end

new text begin (b) The notice must include:
new text end

new text begin (1) the name and contact information of the reporting financial institution;
new text end

new text begin (2) a description of the types of information involved in the notification event;
new text end

new text begin (3) if possible to determine, the date or date range of the notification event;
new text end

new text begin (4) the number of consumers affected or potentially affected by the notification event;
new text end

new text begin (5) a general description of the notification event; and
new text end

new text begin (6) a statement (i) disclosing whether a law enforcement official has provided the financial
institution with a written determination indicating that providing notice to the public regarding
the breach would impede a criminal investigation or cause damage to national security, and
(ii) if a written determination described under item (i) was provided to the financial
institution, providing contact information that enables the commissioner to contact the law
enforcement official. A law enforcement official may request an initial delay of up to 45
days following the date that notice was provided to the commissioner. The delay may be
extended for an additional period of up to 60 days if the law enforcement official seeks an
extension in writing. An additional delay may be permitted only if the commissioner
determines that public disclosure of a security event continues to impede a criminal
investigation or cause damage to national security.
new text end

new text begin Subd. 2. new text end

new text begin Notification event treated as discovered. new text end

new text begin A notification event must be treated
as discovered on the first day when the event is known to a financial institution. A financial
institution is deemed to have knowledge of a notification event if the event is known to any
person, other than the person committing the breach, who is the financial institution's
employee, officer, or other agent.
new text end

Sec. 7.

new text begin [46A.07] COMMISSIONER'S POWERS.
new text end

new text begin (a) The commissioner has the power to examine and investigate the affairs of any covered
financial institution to determine whether the financial institution has been or is engaged in
any conduct that violates this chapter. This power is in addition to the powers granted to
the commissioner under section 46.01.
new text end

new text begin (b) If the commissioner has reason to believe that a financial institution has been or is
engaged in conduct in Minnesota that violates this chapter, the commissioner may take
action necessary or appropriate to enforce this chapter.
new text end

Sec. 8.

new text begin [46A.08] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Financial institution information. new text end

new text begin (a) Any documents, materials, or
other information in the control or possession of the department that are furnished by a
licensee or a licensee's employee or agent acting on behalf of a financial institution pursuant
to section 46A.06 or that are obtained by the commissioner in an investigation or examination
pursuant to section 46A.07: (1) are classified as confidential, protected nonpublic, or both;
(2) are not subject to subpoena; and (3) are not subject to discovery or admissible in evidence
in any private civil action.
new text end

new text begin (b) Notwithstanding paragraph (a), clauses (1) to (3), the commissioner is authorized to
use the documents, materials, or other information in the furtherance of any regulatory or
legal action brought as a part of the commissioner's duties.
new text end

new text begin Subd. 2. new text end

new text begin Certain testimony prohibited. new text end

new text begin Neither the commissioner nor any person who
received documents, materials, or other information while acting under the authority of the
commissioner is permitted or required to testify in a private civil action concerning
confidential documents, materials, or information subject to subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Information sharing. new text end

new text begin In order to assist in the performance of the commissioner's
duties under sections 46A.01 to 46A.08, the commissioner may:
new text end

new text begin (1) share documents, materials, or other information, including the confidential and
privileged documents, materials, or information subject to subdivision 1, with other state,
federal, and international regulatory agencies, with the Conference of State Bank Supervisors,
the Conference of State Bank Supervisors' affiliates or subsidiaries, and with state, federal,
and international law enforcement authorities, provided that the recipient agrees in writing
to maintain the confidentiality and privileged status of the document, material, or other
information;
new text end

new text begin (2) receive documents, materials, or information, including otherwise confidential and
privileged documents, materials, or information, from the Conference of State Bank
Supervisors, the Conference of State Bank Supervisors' affiliates or subsidiaries, and from
regulatory and law enforcement officials of other foreign or domestic jurisdictions, and
must maintain as confidential or privileged any document, material, or information received
with notice or the understanding that the document, material, or information is confidential
or privileged under the laws of the jurisdiction that is the source of the document, material,
or information;
new text end

new text begin (3) share documents, materials, or other information subject to subdivision 1 with a
third-party consultant or vendor, provided the consultant agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other information; and
new text end

new text begin (4) enter into agreements governing the sharing and use of information that are consistent
with this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin No waiver of privilege or confidentiality; information retention. new text end

new text begin (a) The
disclosure of documents, materials, or information to the commissioner under this section
or as a result of sharing as authorized in subdivision 3 does not result in a waiver of any
applicable privilege or claim of confidentiality in the documents, materials, or information.
new text end

new text begin (b) A document, material, or information disclosed to the commissioner under this section
about a cybersecurity event must be retained and preserved by the financial institution for
five years.
new text end

new text begin Subd. 5. new text end

new text begin Certain actions public. new text end

new text begin Nothing in sections 46A.01 to 46A.08 prohibits the
commissioner from releasing final, adjudicated actions that are open to public inspection
pursuant to chapter 13 to a database or other clearinghouse service maintained by the
Conference of State Bank Supervisors, the Conference of State Bank Supervisors' affiliates,
or the Conference of State Bank Supervisors' subsidiaries.
new text end

new text begin Subd. 6. new text end

new text begin Classification, protection, and use of information by others. new text end

new text begin Documents,
materials, or other information in the possession or control of the Conference of State Bank
Supervisors or a third-party consultant pursuant to sections 46A.01 to 46A.08: (1) are
classified as confidential, protected nonpublic, and privileged; (2) are not subject to subpoena;
and (3) are not subject to discovery or admissible in evidence in a private civil action.
new text end

Sec. 9.

Minnesota Statutes 2022, section 47.20, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section the terms defined in this subdivision
have the meanings given them:

(1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
whether or not retained by the mortgagee or lender:

(a) Any insurance premiums including but not limited to premiums for title insurance,
fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
excluding any charges or sums retained by the mortgagee or lender as self-insured retention.

(b) Abstracting, title examination and search, and examination of public records.

(c) The preparation and recording of any or all documents required by law or custom
for closing a conventional or cooperative apartment loan.

(d) Appraisal and survey of real property securing a conventional loan or real property
owned by a cooperative apartment corporation of which a share or shares of stock or a
membership certificate or certificates are to secure a cooperative apartment loan.

(e) A single service charge, which includes any consideration, not otherwise specified
herein as an "actual closing cost" paid by the borrower and received and retained by the
lender for or related to the acquisition, making, refinancing or modification of a conventional
or cooperative apartment loan, and also includes any consideration received by the lender
for making a borrower's interest rate commitment or for making a borrower's loan
commitment, whether or not an actual loan follows the commitment. The term service charge
does not include forward commitment fees. The service charge shall not exceed one percent
of the original bona fide principal amount of the conventional or cooperative apartment
loan, except that in the case of a construction loan, the service charge shall not exceed two
percent of the original bona fide principal amount of the loan. That portion of the service
charge imposed because the loan is a construction loan shall be itemized and a copy of the
itemization furnished the borrower. A lender shall not collect from a borrower the additional
one percent service charge permitted for a construction loan if it does not perform the service
for which the charge is imposed or if third parties perform and charge the borrower for the
service for which the lender has imposed the charge.

(f) Charges and fees necessary for or related to the transfer of real or personal property
securing a conventional or cooperative apartment loan or the closing of a conventional or
cooperative apartment loan paid by the borrower and received by any party other than the
lender.

(2) "Contract for deed" means an executory contract for the conveyance of real estate,
the original principal amount of which is less than $300,000. A commitment for a contract
for deed shall include an executed purchase agreement or earnest money contract wherein
the seller agrees to finance any part or all of the purchase price by a contract for deed.

(3) "Conventional loan" means a loan or advance of credit, other than a loan or advance
of credit made by a credit union or made pursuant to section 334.011, to a noncorporate
borrower in an original principal amount of less than deleted text begin $100,000 deleted text end new text begin or equal to the conforming
loan limit established by the Federal Housing Finance Agency under the Housing and
Recovery Act of 2018, Public Law 110-289 new text end , secured by a mortgage upon real property
containing one or more residential units or upon which at the time the loan is made it is
intended that one or more residential units are to be constructed, and which is not insured
or guaranteed by the secretary of housing and urban development, by the administrator of
veterans affairs, or by the administrator of the Farmers Home Administration, and which
is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
mortgage does not include contracts for deed or installment land contracts.

(4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
or advance of credit made by a credit union or made pursuant to section 334.011, to a
noncorporate borrower in an original principal amount of less than $100,000, secured by a
security interest on a share or shares of stock or a membership certificate or certificates
issued to a stockholder or member by a cooperative apartment corporation, which may be
accompanied by an assignment by way of security of the borrower's interest in the proprietary
lease or occupancy agreement in property issued by the cooperative apartment corporation
and which is not insured or guaranteed by the secretary of housing and urban development,
by the administrator of veterans affairs, or by the administrator of the Farmers Home
Administration.

(5) "Cooperative apartment corporation" means a corporation or cooperative organized
under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
reason of their ownership of stock or membership certificates in the corporation or
association, to occupy one or more residential units in a building owned or leased by the
corporation or association.

(6) "Forward commitment fee" means a fee or other consideration paid to a lender for
the purpose of securing a binding forward commitment by or through the lender to make
conventional loans to two or more credit worthy purchasers, including future purchasers,
of residential units, or a fee or other consideration paid to a lender for the purpose of securing
a binding forward commitment by or through the lender to make conventional loans to two
or more credit worthy purchasers, including future purchasers, of units to be created out of
existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
for the purpose of securing a binding forward commitment by or through the lender to make
cooperative apartment loans to two or more credit worthy purchasers, including future
purchasers, of a share or shares of stock or a membership certificate or certificates in a
cooperative apartment corporation; provided, that the forward commitment rate of interest
does not exceed the maximum lawful rate of interest effective as of the date the forward
commitment is issued by the lender.

(7) "Borrower's interest rate commitment" means a binding commitment made by a
lender to a borrower wherein the lender agrees that, if a conventional or cooperative
apartment loan is made following issuance of and pursuant to the commitment, the
conventional or cooperative apartment loan shall be made at a rate of interest not in excess
of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
to in the commitment is not in excess of the maximum lawful rate of interest effective as
of the date the commitment is issued by the lender to the borrower.

(8) "Borrower's loan commitment" means a binding commitment made by a lender to a
borrower wherein the lender agrees to make a conventional or cooperative apartment loan
pursuant to the provisions, including the interest rate, of the commitment, provided that the
commitment rate of interest does not exceed the maximum lawful rate of interest effective
as of the date the commitment is issued and the commitment when issued and agreed to
shall constitute a legally binding obligation on the part of the mortgagee or lender to make
a conventional or cooperative apartment loan within a specified time period in the future at
a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
the commitment is issued by the lender to the borrower; provided that a lender who issues
a borrower's loan commitment pursuant to the provisions of a forward commitment is
authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
maximum lawful rate of interest effective as of the date the forward commitment is issued
by the lender.

(9) "Finance charge" means the total cost of a conventional or cooperative apartment
loan including extensions or grant of credit regardless of the characterization of the same
and includes interest, finders fees, and other charges levied by a lender directly or indirectly
against the person obtaining the conventional or cooperative apartment loan or against a
seller of real property securing a conventional loan or a seller of a share or shares of stock
or a membership certificate or certificates in a cooperative apartment corporation securing
a cooperative apartment loan, or any other party to the transaction except any actual closing
costs and any forward commitment fee. The finance charges plus the actual closing costs
and any forward commitment fee, charged by a lender shall include all charges made by a
lender other than the principal of the conventional or cooperative apartment loan. The finance
charge, with respect to wraparound mortgages, shall be computed based upon the face
amount of the wraparound mortgage note, which face amount shall consist of the aggregate
of those funds actually advanced by the wraparound lender and the total outstanding principal
balances of the prior note or notes which have been made a part of the wraparound mortgage
note.

(10) "Lender" means any person making a conventional or cooperative apartment loan,
or any person arranging financing for a conventional or cooperative apartment loan. The
term also includes the holder or assignee at any time of a conventional or cooperative
apartment loan.

(11) "Loan yield" means the annual rate of return obtained by a lender over the term of
a conventional or cooperative apartment loan and shall be computed as the annual percentage
rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
the rate of interest or loan yield shall be based upon the principal balance set forth in the
wraparound note and mortgage and shall not include any interest differential or yield
differential between the stated interest rate on the wraparound mortgage and the stated
interest rate on the one or more prior mortgages included in the stated loan amount on a
wraparound note and mortgage.

(12) "Person" means an individual, corporation, business trust, partnership or association
or any other legal entity.

(13) "Residential unit" means any structure used principally for residential purposes or
any portion thereof, and includes a unit in a common interest community, a nonowner
occupied residence, and any other type of residence regardless of whether the unit is used
as a principal residence, secondary residence, vacation residence, or residence of some other
denomination.

(14) "Vendor" means any person or persons who agree to sell real estate and finance
any part or all of the purchase price by a contract for deed. The term also includes the holder
or assignee at any time of the vendor's interest in a contract for deed.

Sec. 10.

Minnesota Statutes 2022, section 47.54, subdivision 2, is amended to read:

Subd. 2.

Approval deleted text begin order deleted text end .

new text begin (a) new text end If no objection is received by the commissioner within
15 days after the publication of the notice, the commissioner deleted text begin shall issue an order deleted text end new text begin must
provide written consent new text end approving the application without a hearing if deleted text begin it is found deleted text end new text begin the
commissioner finds new text end that deleted text begin (a) deleted text end new text begin : (1) new text end the applicant bank meets current industry standards of
capital adequacy, management quality, and asset condition deleted text begin , (b) deleted text end new text begin ; (2) new text end the establishment of the
proposed detached facility deleted text begin will improve deleted text end new text begin improves new text end the quality or increase the availability of
banking services in the community to be served deleted text begin , deleted text end new text begin ; new text end and deleted text begin (c) deleted text end new text begin (3) new text end the establishment of the proposed
detached facility deleted text begin will deleted text end new text begin does new text end not have an undue adverse effect upon the solvency of existing
financial institutions in the community to be served.

deleted text begin Otherwise, deleted text end new text begin (b) new text end The commissioner deleted text begin shall deleted text end new text begin must new text end deny deleted text begin the deleted text end new text begin an new text end application new text begin that does not meet
the criteria under paragraph (a), clauses (1) to (3) new text end .

new text begin (c) new text end Any proceedings for judicial review of deleted text begin an order of deleted text end new text begin written consent provided by new text end the
commissioner deleted text begin issued deleted text end under this subdivision without a contested case hearing shall be
conducted pursuant to the provisions of the Administrative Procedure Act relating to judicial
review of agency decisions, sections 14.63 to 14.69, and the scope of judicial review in
such proceedings shall be as provided therein. Nothing herein shall be construed as requiring
the commissioner to conduct a contested case hearing if no written objection is timely
received by the commissioner from a bank within three miles of the proposed location of
the detached facility.

Sec. 11.

Minnesota Statutes 2022, section 47.54, subdivision 6, is amended to read:

Subd. 6.

Expiration and extension of deleted text begin order deleted text end new text begin approval new text end .

If a facility is not activated
within 18 months from the date deleted text begin of the order deleted text end new text begin approval is granted under subdivision 2 new text end , the
approval deleted text begin order deleted text end automatically expires. Upon new text begin a new text end request deleted text begin of deleted text end new text begin made by new text end the applicant deleted text begin prior to deleted text end new text begin
before new text end the deleted text begin automatic expiration deleted text end date deleted text begin of deleted text end the deleted text begin order deleted text end new text begin approval expires new text end , the commissioner may
grant reasonable extensions of time to the applicant to activate the facility as the
commissioner deems necessary. The extensions of time shall not exceed a total of an
additional 12 months. If the commissioner's deleted text begin order deleted text end new text begin approval new text end is the subject of an appeal in
accordance with chapter 14, the time period referred to in this section deleted text begin for activation of deleted text end new text begin to
activate new text end the facility and any extensions deleted text begin shall begin deleted text end new text begin begins new text end when all appeals or rights of
appeal from the commissioner's deleted text begin order deleted text end new text begin approval new text end have concluded or expired.

Sec. 12.

Minnesota Statutes 2022, section 48.24, subdivision 2, is amended to read:

Subd. 2.

Loan liabilities.

Loans not exceeding 25 percent of such capital and surplus
made upon first mortgage security on improved real estate in any state in which the bank
or a deleted text begin branch established under section 49.411 deleted text end new text begin detached facility of the bank new text end is located, or in
any state adjoining a state in which the bank or a deleted text begin branch established under section 49.411 deleted text end new text begin
detached facility of the bank new text end is located, shall not constitute a liability of the maker of the
notes secured by such mortgages within the meaning of the foregoing provision limiting
liability, but shall be an actual liability of the maker. These mortgage loans shall be limited
to, and in no case exceed, 50 percent of the cash value of the security covered by the
mortgage, except mortgage loans guaranteed as provided by the Servicemen's Readjustment
Act of 1944, as now or hereafter amended, or for which there is a commitment to so guarantee
or for which a conditional guarantee has been issued, which loans shall in no case exceed
60 percent of the cash value of the security covered by such mortgage. For the purposes of
this subdivision, real estate is improved when substantial and permanent development or
construction has contributed substantially to its value, and agricultural land is improved
when farm crops are regularly raised on such land without further substantial improvements.

Sec. 13.

Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 18, is amended
to read:

Subd. 18.

Money transmission.

(a) "Money transmission" means:

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

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

(3) receiving money for transmission from a person located in this state.

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

Sec. 14.

Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 25, is amended
to read:

Subd. 25.

Payroll processing services.

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

Sec. 15.

Minnesota Statutes 2023 Supplement, section 53B.29, is amended to read:

53B.29 EXEMPTIONS.

This chapter does not apply to:

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

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

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

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

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

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

(i) is properly licensed or exempt from licensing requirements under this chapter;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (14) payroll processing services providers; or
new text end

deleted text begin (14) deleted text end new text begin (15) new text end a person exempt by regulation or order if the commissioner finds that (i) the
exemption is in the public interest, and (ii) the regulation of the person is not necessary for
the purposes of this chapter.

Sec. 16.

Minnesota Statutes 2022, section 58.02, is amended by adding a subdivision to
read:

new text begin Subd. 15a. new text end

new text begin Nationwide Multistate Licensing System and Registry. new text end

new text begin "Nationwide
Multistate Licensing System and Registry" has the meaning given in section 58A.02,
subdivision 8.
new text end

Sec. 17.

Minnesota Statutes 2022, section 58.02, subdivision 18, is amended to read:

Subd. 18.

Residential mortgage loan.

"Residential mortgage loan" means a loan secured
primarily by either: (1) a mortgage new text begin , deed of trust, or other equivalent security interest new text end on
residential real deleted text begin property deleted text end new text begin estate new text end ; or (2) certificates of stock or other evidence of ownership
interest in and proprietary lease from corporations, partnerships, or other forms of business
organizations formed for the purpose of cooperative ownership of residential real deleted text begin property deleted text end new text begin
estate new text end .

Sec. 18.

Minnesota Statutes 2022, section 58.02, subdivision 21, is amended to read:

Subd. 21.

Residential real estate.

"Residential real estate" means real property located
in Minnesota upon which a dwelling new text begin , as defined in United States Code, title 15, section
1602(w), new text end is constructed or is intended to be constructed, whether or not the owner occupies
the real property.

Sec. 19.

Minnesota Statutes 2022, 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;

new text begin (6) a person who is a bona fide nonprofit organization that meets all the criteria required
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, adopted pursuant
to Code of Federal Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii);
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; or

deleted text begin (7) deleted text end new text begin (8) new text end a manufactured home dealer, as defined in section 327B.01, subdivision 7 or 11b,
or a manufactured home salesperson, as defined in section 327B.01, subdivision 19, that:

(i) performs only clerical or support duties in connection with assisting a consumer in
filling out a residential mortgage loan application but does not in any way offer or negotiate
loan terms, or hold themselves out as a housing counselor;

(ii) does not receive any direct or indirect compensation or gain from any individual or
company for assisting consumers with a residential mortgage loan application, in excess of
the customary salary or commission from the employer in connection with the sales
transaction; and

(iii) discloses to the borrower in writing:

(A) if a corporate affiliation with a lender exists;

(B) if a corporate affiliation with a lender exists, that the lender cannot guarantee the
lowest or best terms available and the consumer has the right to choose their lender; and

(C) if a corporate affiliation with a lender exists, the name of at least one unaffiliated
lender.

(d) For the purposes of this subdivision, "housing counselor" means an individual who
provides assistance and guidance about residential mortgage loan terms including rates,
fees, or other costs.

(e) The disclosures required under paragraph (c), clause deleted text begin (7) deleted text end new text begin (8) new text end , item (iii), must be made
on a one-page form prescribed by the commissioner and developed in consultation with the
Manufactured and Modular Home Association. The form must be posted on the department's
website.

Sec. 20.

Minnesota Statutes 2022, section 58.04, subdivision 2, is amended to read:

Subd. 2.

Residential mortgage servicer licensing requirements.

(a) Beginning August
1, 1999, no person shall engage in activities or practices that fall within the definition of
"servicing a residential mortgage loan" under section 58.02, subdivision 22, without first
obtaining a license from the commissioner according to the licensing procedures provided
in this chapter.

(b) The following persons are exempt from the residential mortgage servicer licensing
requirements:

(1) a person licensed as a residential mortgage originator;

(2) an employee of one licensee or one person holding a certificate of exemption based
on an exemption under this subdivision;

(3) a person servicing loans made with its own funds, if no more than three such loans
are made in any 12-month period;

(4) a financial institution as defined in section 58.02, subdivision 10;

(5) an agency of the federal government, or of a state or municipal government;

(6) an employee or employer pension plan making loans only to its participants;

(7) 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 (8) a person who is a bona fide nonprofit organization that meets all the criteria required
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, Code of Federal
Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii); or
new text end

deleted text begin (8) deleted text end new text begin (9) new text end a person exempted by order of the commissioner.

Sec. 21.

Minnesota Statutes 2022, section 58.05, subdivision 1, is amended to read:

Subdivision 1.

Exempt person.

new text begin (a) new text end An exempt person new text begin , new text end as defined by section 58.04,
subdivision 1, paragraph (c), and subdivision 2, paragraph (b), is exempt from the licensing
requirements of this chapter, but is subject to all other provisions of this chapter.

new text begin (b) Paragraph (a) does not apply to an institution covered under section 58.04, subdivision
4, even if the institution is otherwise an exempt person.
new text end

Sec. 22.

Minnesota Statutes 2022, section 58.05, subdivision 3, is amended to read:

Subd. 3.

Certificate of exemption.

deleted text begin A person deleted text end new text begin (a) The following persons new text end must obtain a
certificate of exemption from the commissioner to qualify as an exempt person under section
58.04, subdivision 1, paragraph (c) deleted text begin , deleted text end new text begin : (1) new text end a financial institution under new text begin section 58.04,
subdivision 1, paragraph (c), new text end clause (2) deleted text begin , deleted text end new text begin ; (2) a bona fide nonprofit organization under section
58.04, subdivision 1, paragraph (c), clause (6); new text end or new text begin (3) a person exempted new text end by order of the
commissioner under new text begin section 58.04, subdivision 1, paragraph (c), new text end clause deleted text begin (6); or deleted text end new text begin (7).
new text end

new text begin (b) The following persons must obtain a certificate of exemption from the commissioner
to qualify as an exempt person new text end under section 58.04, subdivision 2, paragraph (b) deleted text begin , as deleted text end new text begin : (1) new text end a
financial institution under new text begin section 58.04, subdivision 2, paragraph (b), new text end clause (4) deleted text begin , deleted text end new text begin ; (2) a bona
fide nonprofit organization under section 58.04, subdivision 2, paragraph (b), clause (8); new text end or new text begin
(3) a person exempted new text end by order of the commissioner under clause deleted text begin (8) deleted text end new text begin (9) new text end .

Sec. 23.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Background checks. new text end

new text begin In connection with an application for a residential mortgage
loan originator or servicer license, any person in control of an applicant must, at a minimum,
provide the Nationwide Multistate Licensing System and Registry information concerning
the person's identity, including:
new text end

new text begin (1) fingerprints for submission to the Federal Bureau of Investigation and a governmental
agency or entity authorized to receive the information for a state, national, and international
criminal history background check; and
new text end

new text begin (2) personal history and experience in a form prescribed by the Nationwide Multistate
Licensing System and Registry, including the submission of authorization for the Nationwide
Multistate Licensing System and Registry and the commissioner to obtain:
new text end

new text begin (i) an independent credit report obtained from a consumer reporting agency described
in United States Code, title 15, section 1681a(p); and
new text end

new text begin (ii) information related to administrative, civil, or criminal findings by a governmental
jurisdiction.
new text end

Sec. 24.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Requesting and distributing criminal information; agency. new text end

new text begin For the purposes
of this section and in order to reduce the points of contact the Federal Bureau of Investigation
may have to maintain for purposes of subdivision 5, clauses (1) and (2), the commissioner
may use the Nationwide Multistate Licensing System and Registry as a channeling agent
to request information from and distribute information to the United States Department of
Justice or any governmental agency.
new text end

Sec. 25.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Requesting and distributing noncriminal information; agency. new text end

new text begin For the
purposes of this section and in order to reduce the points of contact the commissioner may
have to maintain for purposes of subdivision 5, clause (2), the commissioner may use the
Nationwide Multistate Licensing System and Registry as a channeling agent to request and
distribute information from and to any source, as directed by the commissioner.
new text end

Sec. 26.

Minnesota Statutes 2022, section 58.08, subdivision 1a, is amended to read:

Subd. 1a.

Residential mortgage originators.

(a) An applicant for a residential mortgage
originator license must file with the department a surety bond in the amount of deleted text begin $100,000 deleted text end new text begin
$125,000 new text end , issued by an insurance company authorized to do so in this state. The bond must
cover all mortgage loan originators who are employees or independent agents of the applicant.
The bond must be available for the recovery of expenses, fines, and fees levied by the
commissioner under this chapter and for losses incurred by borrowers as a result of a
licensee's noncompliance with the requirements of this chapter, sections 325D.43 to 325D.48,
and 325F.67 to 325F.69, or breach of contract relating to activities regulated by this chapter.

(b) The bond must be submitted with the originator's license application and evidence
of continued coverage must be submitted with each renewal. Any change in the bond must
be submitted for approval by the commissioner, within ten days of its execution. The bond
or a substitute bond shall remain in effect during all periods of licensing.

(c) Upon filing of the mortgage call report as required by section deleted text begin 58A.17 deleted text end new text begin 58.141 new text end , a
licensee shall maintain or increase deleted text begin its deleted text end new text begin the licensee's new text end surety bond to reflect the total dollar
amount of the closed residential mortgage loans originated in this state in the preceding
year according to the table in this paragraph. A licensee may decrease deleted text begin its deleted text end new text begin the licensee's new text end
surety bond according to the table in this paragraph if the surety bond required is less than
the amount of the surety bond on file with the department.

Dollar Amount of Closed Residential Mortgage Loans	Surety Bond Required
$0 to deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end	deleted text begin $100,000 deleted text end new text begin $125,000 new text end
deleted text begin $5,000,000.01 deleted text end new text begin $10,000,000.01 new text end to deleted text begin $10,000,000 deleted text end new text begin $25,000,000 new text end	deleted text begin $125,000 deleted text end new text begin $150,000 new text end
deleted text begin $10,000,000.01 deleted text end new text begin $25,000,000.01 new text end to deleted text begin $25,000,000 deleted text end new text begin $100,000,000 new text end	deleted text begin $150,000 deleted text end new text begin $200,000 new text end
Over deleted text begin $25,000,000 deleted text end new text begin $100,000,000 new text end	deleted text begin $200,000 deleted text end new text begin $300,000 new text end

For purposes of this subdivision, "mortgage loan originator" has the meaning given the
term in section 58A.02, subdivision 7.

Sec. 27.

Minnesota Statutes 2022, section 58.08, subdivision 2, is amended to read:

Subd. 2.

Residential mortgage servicers.

new text begin (a) new text end A residential mortgage servicer licensee
shall continuously maintain a surety bond or irrevocable letter of credit in an amount not
less than deleted text begin $100,000 deleted text end new text begin $125,000 new text end in a form approved by the commissioner, issued by an insurance
company or bank authorized to do so in this state. The bond or irrevocable letter of credit
must be available for the recovery of expenses, fines, and fees levied by the commissioner
under this chapter, and for losses or damages incurred by borrowers or other aggrieved
parties as the result of a licensee's noncompliance with the requirements of this chapter,
sections 325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to
activities regulated by this chapter.

new text begin (b) new text end The bond or irrevocable letter of credit must be submitted with the servicer's license
application and evidence of continued coverage must be submitted with each renewal. Any
change in the bond or letter of credit must be submitted for approval by the commissioner,
within ten days of its execution. new text begin The bond or a substitute bond must remain in effect during
all periods of a license.
new text end

new text begin (c) Upon filing the mortgage call report under section 58.141, a licensee must maintain
or increase the licensee's surety bond to reflect the total dollar amount of unpaid principal
balance for residential mortgage loans serviced in Minnesota during the preceding quarter
according to the table in this paragraph. A licensee may decrease the licensee's surety bond
according to the table in this paragraph if the surety bond required is less than the amount
of the surety bond on file with the department.
new text end

new text begin Dollar Amount of Unpaid Principal Balance for Serviced Residential Mortgage Loans new text end	new text begin Surety Bond Required new text end
new text begin $0 to $10,000,000 new text end	new text begin $125,000 new text end
new text begin $10,000,000.01 to $50,000,000 new text end	new text begin $200,000 new text end
new text begin Over $50,000,000 new text end	new text begin $300,000 new text end

Sec. 28.

Minnesota Statutes 2022, section 58.10, subdivision 3, is amended to read:

Subd. 3.

Consumer education account; money credited and appropriated.

(a) The
consumer education account is created in the special revenue fund. Money credited to this
account may be appropriated to the commissioner deleted text begin for the purpose of making deleted text end new text begin to: (1) make new text end
grants to programs and campaigns designed to help consumers avoid being victimized by
unscrupulous lenders and mortgage brokers new text begin ; and (2) pay for expenses the commissioner
incurs to provide outreach and education related new text end new text begin to affordable housing and home ownership
education new text end . new text begin The commissioner must give new text end preference deleted text begin shall be given deleted text end new text begin for grants new text end to programs
and campaigns designed by coalitions of public sector, private sector, and nonprofit agencies,
institutions, companies, and organizations.

(b) A sum sufficient is appropriated annually from the consumer education account to
the commissioner to make the grants described in paragraph (a).

Sec. 29.

Minnesota Statutes 2022, section 58.115, is amended to read:

58.115 EXAMINATIONS.

The commissioner has under this chapter the same powers with respect to examinations
that the commissioner has under section 46.04. new text begin In addition to the powers under section
46.04, the commissioner may accept examination reports prepared by a state agency that
has comparable supervisory powers and examination procedures. The authority under section
49.411, subdivision 7, applies to examinations of institutions under this chapter.
new text end

Sec. 30.

Minnesota Statutes 2022, section 58.13, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) No person acting as a residential mortgage originator or
servicer, including a person required to be licensed under this chapter, and no person exempt
from the licensing requirements of this chapter under section 58.04, except as otherwise
provided in paragraph (b), shall:

(1) fail to maintain a trust account to hold trust funds received in connection with a
residential mortgage loan;

(2) fail to deposit all trust funds into a trust account within three business days of receipt;
commingle trust funds with funds belonging to the licensee or exempt person; or use trust
account funds for any purpose other than that for which they are received;

(3) unreasonably delay the processing of a residential mortgage loan application, or the
closing of a residential mortgage loan. For purposes of this clause, evidence of unreasonable
delay includes but is not limited to those factors identified in section 47.206, subdivision
7, paragraph (d);

(4) fail to disburse funds according to its contractual or statutory obligations;

(5) fail to perform in conformance with its written agreements with borrowers, investors,
other licensees, or exempt persons;

(6) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product or
service;

(7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property
law;

(8) violate any provision of any other applicable state or federal law regulating residential
mortgage loans including, without limitation, sections 47.20 to 47.208 and 47.58;

(9) make or cause to be made, directly or indirectly, any false, deceptive, or misleading
statement or representation in connection with a residential loan transaction including,
without limitation, a false, deceptive, or misleading statement or representation regarding
the borrower's ability to qualify for any mortgage product;

(10) conduct residential mortgage loan business under any name other than that under
which the license or certificate of exemption was issued;

(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
the purpose of influencing the independent judgment of the appraiser with respect to the
value of real estate that is to be covered by a residential mortgage or is being offered as
security according to an application for a residential mortgage loan;

(12) issue any document indicating conditional qualification or conditional approval for
a residential mortgage loan, unless the document also clearly indicates that final qualification
or approval is not guaranteed, and may be subject to additional review;

(13) make or assist in making any residential mortgage loan with the intent that the loan
will not be repaid and that the residential mortgage originator will obtain title to the property
through foreclosure;

(14) provide or offer to provide for a borrower, any brokering or lending services under
an arrangement with a person other than a licensee or exempt person, provided that a person
may rely upon a written representation by the residential mortgage originator that it is in
compliance with the licensing requirements of this chapter;

(15) claim to represent a licensee or exempt person, unless the person is an employee
of the licensee or exempt person or unless the person has entered into a written agency
agreement with the licensee or exempt person;

(16) fail to comply with the record keeping and notification requirements identified in
section 58.14 or fail to abide by the affirmations made on the application for licensure;

(17) represent that the licensee or exempt person is acting as the borrower's agent after
providing the nonagency disclosure required by section 58.15, unless the disclosure is
retracted and the licensee or exempt person complies with all of the requirements of section
58.16;

(18) make, provide, or arrange for a residential mortgage loan that is of a lower investment
grade if the borrower's credit score or, if the originator does not utilize credit scoring or if
a credit score is unavailable, then comparable underwriting data, indicates that the borrower
may qualify for a residential mortgage loan, available from or through the originator, that
is of a higher investment grade, unless the borrower is informed that the borrower may
qualify for a higher investment grade loan with a lower interest rate and/or lower discount
points, and consents in writing to receipt of the lower investment grade loan;

For purposes of this section, "investment grade" refers to a system of categorizing
residential mortgage loans in which the loans are distinguished by interest rate or discount
points or both charged to the borrower, which vary according to the degree of perceived
risk of default based on factors such as the borrower's credit, including credit score and
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
bankruptcy or foreclosure;

(19) make, publish, disseminate, circulate, place before the public, or cause to be made,
directly or indirectly, any advertisement or marketing materials of any type, or any statement
or representation relating to the business of residential mortgage loans that is false, deceptive,
or misleading;

(20) advertise loan types or terms that are not available from or through the licensee or
exempt person on the date advertised, or on the date specified in the advertisement. For
purposes of this clause, advertisement includes, but is not limited to, a list of sample mortgage
terms, including interest rates, discount points, and closing costs provided by licensees or
exempt persons to a print or electronic medium that presents the information to the public;

(21) use or employ phrases, pictures, return addresses, geographic designations, or other
means that create the impression, directly or indirectly, that a licensee or other person is a
governmental agency, or is associated with, sponsored by, or in any manner connected to,
related to, or endorsed by a governmental agency, if that is not the case;

(22) violate section 82.77, relating to table funding;

(23) make, provide, or arrange for a residential mortgage loan all or a portion of the
proceeds of which are used to fully or partially pay off a "special mortgage" unless the
borrower has obtained a written certification from an authorized independent loan counselor
that the borrower has received counseling on the advisability of the loan transaction. For
purposes of this section, "special mortgage" means a residential mortgage loan originated,
subsidized, or guaranteed by or through a state, tribal, or local government, or nonprofit
organization, that bears one or more of the following nonstandard payment terms which
substantially benefit the borrower: (i) payments vary with income; (ii) payments of principal
or interest are not required or can be deferred under specified conditions; (iii) principal or
interest is forgivable under specified conditions; or (iv) where no interest or an annual
interest rate of two percent or less is charged in connection with the loan. For purposes of
this section, "authorized independent loan counselor" means a nonprofit, third-party
individual or organization providing home buyer education programs, foreclosure prevention
services, mortgage loan counseling, or credit counseling certified by the United States
Department of Housing and Urban Development, the Minnesota Home Ownership Center,
the Minnesota Mortgage Foreclosure Prevention Association, AARP, or NeighborWorks
America;

(24) make, provide, or arrange for a residential mortgage loan without verifying the
borrower's reasonable ability to pay the scheduled payments of the following, as applicable:
principal; interest; real estate taxes; homeowner's insurance, assessments, and mortgage
insurance premiums. For loans in which the interest rate may vary, the reasonable ability
to pay shall be determined based on a fully indexed rate and a repayment schedule which
achieves full amortization over the life of the loan. For all residential mortgage loans, the
borrower's income and financial resources must be verified by tax returns, payroll receipts,
bank records, or other similarly reliable documents.

Nothing in this section shall be construed to limit a mortgage originator's or exempt
person's ability to rely on criteria other than the borrower's income and financial resources
to establish the borrower's reasonable ability to repay the residential mortgage loan, including
criteria established by the United States Department of Veterans Affairs or the United States
Department of Housing and Urban Development for interest rate reduction refinancing loans
or streamline loans, or criteria authorized or promulgated by the Federal National Mortgage
Association or Federal Home Loan Mortgage Corporation; however, such other criteria
must be verified through reasonably reliable methods and documentation. The mortgage
originator's analysis of the borrower's reasonable ability to repay may include, but is not
limited to, consideration of the following items, if verified: (1) the borrower's current and
expected income; (2) current and expected cash flow; (3) net worth and other financial
resources other than the consumer's equity in the dwelling that secures the loan; (4) current
financial obligations; (5) property taxes and insurance; (6) assessments on the property; (7)
employment status; (8) credit history; (9) debt-to-income ratio; (10) credit scores; (11) tax
returns; (12) pension statements; and (13) employment payment records, provided that no
mortgage originator shall disregard facts and circumstances that indicate that the financial
or other information submitted by the consumer is inaccurate or incomplete. A statement
by the borrower to the residential mortgage originator or exempt person of the borrower's
income and resources or sole reliance on any single item listed above is not sufficient to
establish the existence of the income or resources when verifying the reasonable ability to
pay;

(25) engage in "churning." As used in this section, "churning" means knowingly or
intentionally making, providing, or arranging for a residential mortgage loan when the new
residential mortgage loan does not provide a reasonable, tangible net benefit to the borrower
considering all of the circumstances new text begin , new text end including the terms of both the new and refinanced
loans, the cost of the new loan, and the borrower's circumstances deleted text begin ; deleted text end new text begin . In order to demonstrate
a reasonable, tangible net benefit to the borrower, the circumstances must be documented
in writing and must be signed by the borrower and lender three days before the closing date.
The written analysis must, with respect to the prior loan and the new loan, document the:
(i) origination date; (ii) loan amount; (iii) loan balance; (iv) loan term; (v) loan program;
(vi) type of loan; (vii) interest rate; (viii) monthly amount of principal and interest paid; (ix)
monthly amount of private mortgage insurance paid; (x) loan purpose; (xi) loan origination
cost; (xii) cash to borrower, if applicable; and (xiii) time to recoup the loan cost, if applicable,
expressed in months;
new text end

(26) the first time a residential mortgage originator orally informs a borrower of the
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
which does not include an amount for payment of property taxes and hazard insurance, the
residential mortgage originator must inform the borrower that an additional amount will be
due for taxes and insurance and, if known, disclose to the borrower the amount of the
anticipated or actual periodic payments for property taxes and hazard insurance. This same
oral disclosure must be made each time the residential mortgage originator orally informs
the borrower of a different anticipated or actual periodic payment amount change from the
amount previously disclosed. A residential mortgage originator need not make this disclosure
concerning a refinancing loan if the residential mortgage originator knows that the borrower's
existing loan that is anticipated to be refinanced does not have an escrow account; or

(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
with any repayment option offered pursuant to the terms of the loan will result in negative
amortization during any six-month period.

(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally chartered
bank, savings bank, or credit union, an institution chartered by Congress under the Farm
Credit Act, or to a person making, providing, or arranging a residential mortgage loan
originated or purchased by a state agency or a tribal or local unit of government. This
paragraph supersedes any inconsistent provision of this chapter.

Sec. 31.

new text begin [58.141] REPORTS AND UNIQUE IDENTIFIER.
new text end

new text begin Subdivision 1. new text end

new text begin Mortgage call reports. new text end

new text begin A residential mortgage originator or servicer
must submit reports of condition to the Nationwide Multistate Licensing System and Registry.
Reports submitted under this subdivision must be in the form and contain the information
required by the Nationwide Multistate Licensing System and Registry.
new text end

new text begin Subd. 2. new text end

new text begin Report to Nationwide Multistate Licensing System and Registry. new text end

new text begin Subject
to section 58A.14, the commissioner must regularly report violations of this chapter, as well
as enforcement actions and other relevant information, to the Nationwide Multistate Licensing
System and Registry.
new text end

new text begin Subd. 3. new text end

new text begin Unique identifier; display. new text end

new text begin The unique identifier of any person originating a
residential mortgage loan must be clearly displayed on all residential mortgage loan
application forms, solicitations, or advertisements, including business cards or websites,
and any other documents the commissioner establishes by rule or order.
new text end

Sec. 32.

new text begin [60M.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

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

new text begin Subd. 2. new text end

new text begin Bail bond. new text end

new text begin "Bail bond" is an instrument that is the tool utilized to guarantee
the appearance of an individual and secure the monetary requirement of the bond.
new text end

new text begin Subd. 3. new text end

new text begin Bail bond agency. new text end

new text begin "Bail bond agency" means an agency contracted by a surety
to supervise or otherwise manage the bail bond business written in Minnesota by producers
appointed by the surety.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 5. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Commerce.
new text end

new text begin Subd. 6. new text end

new text begin Depositor. new text end

new text begin "Depositor" means:
new text end

new text begin (1) an individual that has paid money to a surety, bail bond agency, or producer as
premium or premium towards a bail bond product transaction, as defined in section 60M.02;
or
new text end

new text begin (2) an individual that deposited money, property, or assets with a surety, bail bond
agency, or producer to be held as collateral or used towards the liability of a bail bond
product transaction, as defined in section 60M.03.
new text end

new text begin Subd. 7. new text end

new text begin Negotiate. new text end

new text begin "Negotiate" means the act of conferring directly with or offering
advice directly to a purchaser or prospective purchaser of a particular insurance contract
concerning any of the substantive benefits, terms, or conditions of the contract, if the person
engaged in the act either sells insurance or obtains insurance from insurers for purchasers.
new text end

new text begin Subd. 8. new text end

new text begin Net premium. new text end

new text begin "Net premium" means a bond's premium, less any commission
agreed to in advance and in writing between a producer and the surety or bail bond agency.
new text end

new text begin Subd. 9. new text end

new text begin Personal information. new text end

new text begin "Personal information" has the meaning given in section
72A.491, subdivision 17.
new text end

new text begin Subd. 10. new text end

new text begin Principal. new text end

new text begin "Principal" is an individual who has engaged with a bail bond
agency or producer to arrange for the individual's bail bond to be posted on the individual's
behalf, securing the individual's release pretrial on a bail bond.
new text end

new text begin Subd. 11. new text end

new text begin Privileged information. new text end

new text begin "Privileged information" has the meaning given in
section 72A.491, subdivision 19.
new text end

new text begin Subd. 12. new text end

new text begin Producer. new text end

new text begin "Producer" means a person that is licensed to write bail bonds, has
been approved by the state court administrator's office, is a contractor or employee for a
bail bond agency, and is appointed by a surety to execute or countersign bail bonds for the
surety in connection with judicial proceedings.
new text end

new text begin Subd. 13. new text end

new text begin Sell. new text end

new text begin "Sell" means to exchange a bail bond product for money on behalf of a
surety company.
new text end

new text begin Subd. 14. new text end

new text begin Surety. new text end

new text begin "Surety" means a domestic, foreign, or alien insurance company that
is licensed to transact surety business in Minnesota under section 60A.06.
new text end

Sec. 33.

new text begin [60M.02] PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Premiums; generally. new text end

new text begin (a) Regardless of whether a producer is an
employee or an independent contractor, a producer must charge the approved, filed rate of
the surety being used to post a bail bond. Except as provided in subdivision 2 or in a situation
where cash bail is set by the court under subdivision 5, the rate charged must not be less
than the surety's filed rate.
new text end

new text begin (b) A producer is prohibited from providing a premium rebate.
new text end

new text begin (c) A producer may charge travel or other related fees, provided the producer complies
with section 60K.46, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Minimum premium. new text end

new text begin A producer must charge a minimum premium of $100.
Any premium amount must be included in the surety's rate filing with the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Bail bonds less than $10,000. new text end

new text begin (a) A producer is prohibited from posting a bail
bond with a penal sum of $10,000 or less unless the producer has:
new text end

new text begin (1) received at least 50 percent of the total premium owed under the surety's rate filing;
new text end

new text begin (2) provided the depositor with a receipt that indicates the premium paid; and
new text end

new text begin (3) if the full premium is not collected before posting the bond, a signed promissory
note must be obtained requiring the unpaid premium in full within four months of the date
the bond is posted.
new text end

new text begin (b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
or bail bond agency form as approved by the commissioner. The maximum annual interest
rate allowed on a promissory note under this subdivision is six percent. A promissory note
may authorize collection of the actual costs incurred to collect the premium, including
reasonable attorney fees, in the event of a default.
new text end

new text begin Subd. 4. new text end

new text begin Bail bonds greater than $10,000. new text end

new text begin (a) A producer is prohibited from posting
a bail bond with a penal sum greater than $10,000 unless the producer has:
new text end

new text begin (1) received at least 30 percent of the total premium owed under the surety's rate filing;
new text end

new text begin (2) provided the depositor with a receipt that indicates the premium paid; and
new text end

new text begin (3) if the full premium is not collected before posting the bond, a signed promissory
note must be obtained requiring the unpaid premium in full within 12 months of the date
the bond is posted.
new text end

new text begin (b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
or bail bond agency form as approved by the commissioner. The maximum annual interest
rate allowed on a promissory note under this subdivision is six percent. A promissory note
may authorize collection of the actual costs incurred to collect the premium, including
reasonable attorney fees, in the event of a default.
new text end

new text begin Subd. 5. new text end

new text begin Alternative premium structure. new text end

new text begin (a) A bail bond agency or producer may
include an alternative premium structure as part of the bail bond agency or producer's surety
rate filing submitted to the commissioner.
new text end

new text begin (b) If a court sets cash bail at 15 percent or less of the bond's penal amount, a surety,
bail bond agency, or producer may charge an alternative premium that is as low as one-half
of the cash bail amount set by the court. An alternative premium charged under this
subdivision is subject to the minimum premium requirement under subdivision 2.
new text end

new text begin (c) A bail bond agency or producer is required to obtain from the court documentation
indicating the cash bail amount set by the court and must maintain the documentation in
the bond file.
new text end

new text begin (d) A bail bond agency and producer must maintain a log of all bonds where an alternative
premium was charged under this subdivision.
new text end

new text begin (e) Subdivisions 3 and 4 apply to the payment of an alternative premium structure under
this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Late payments. new text end

new text begin If a payment, including a minimum monthly payment, that is
required under a promissory note executed pursuant to subdivision 3 or 4 is more than 90
days late, the bail bond agency or producer must, within 20 days of the date a payment
becomes 90 days late:
new text end

new text begin (1) for amounts owed that are $2,500 or less, assign the debt to a Minnesota-licensed
debt collector; or
new text end

new text begin (2) for amounts owed that are greater than $2,500:
new text end

new text begin (i) file a civil action against the delinquent premium payer; and
new text end

new text begin (ii) make all reasonable efforts to:
new text end

new text begin (A) serve a summons and complaint;
new text end

new text begin (B) enter judgment, unless the matter is settled while the action is pending; and
new text end

new text begin (C) enforce the judgment, which may be satisfied by assigning the debt to a licensed
debt collector.
new text end

new text begin Subd. 7. new text end

new text begin Form of payment. new text end

new text begin A surety, bail bond agency, or producer may only accept
cash, money orders, checks, wire transfers, electronic funds transfers, debit cards, prepaid
cash cards, or credit cards as a premium payment method. Any balance owed must be
evidenced by a promissory note, as provided under subdivision 3 or 4.
new text end

new text begin Subd. 8. new text end

new text begin Premium trust account. new text end

new text begin (a) A payment made to or received by the producer,
bail bond agency, or surety must be deposited into a premium trust account that is maintained
by the producer, bail bond agency, or surety within seven business days.
new text end

new text begin (b) A premium trust account must be used only for premium payments and travel or
other related fees authorized under subdivision 1, paragraph (c). A producer, bail bond
agency, or surety is prohibited from depositing any other money into a premium trust
account.
new text end

new text begin (c) A deposit into a premium trust account must be accompanied by a deposit slip that:
new text end

new text begin (1) separately designates the principal; and
new text end

new text begin (2) lists the power of attorney number of the bond for which the payment is being
collected.
new text end

new text begin (d) Money may be withdrawn from a premium trust account only to:
new text end

new text begin (1) pay the net premium to the surety or bail bond agency;
new text end

new text begin (2) pay a surety or bail bond agency any build-up fund or escrow account required by
a contract executed by the producer and the surety or bail bond agency;
new text end

new text begin (3) pay or reimburse travel or other related fees authorized under subdivision 1, paragraph
(c);
new text end

new text begin (4) pay or reimburse the producer any fees or charges deducted electronically by credit
card processing vendors, provided the fees and charges comply with section 60K.46,
subdivision 2; and
new text end

new text begin (5) distribute any excess amounts to the operating account.
new text end

Sec. 34.

new text begin [60M.03] COLLATERAL.
new text end

new text begin Subdivision 1. new text end

new text begin Collateral generally. new text end

new text begin When collateral is accepted, the producer, surety,
or bail bond agency must provide a written and numbered receipt to the depositor. The
receipt must:
new text end

new text begin (1) contain the date; depositor's name and address; bail bond agency's name and address;
surety's name and address; defendant's name; bond amount; and cash amount or a detailed
description of the collateral, if the collateral is not cash; and
new text end

new text begin (2) be signed by:
new text end

new text begin (i) the producer, surety, or bail bond agency; and
new text end

new text begin (ii) the depositor.
new text end

new text begin Subd. 2. new text end

new text begin Collateral received; transfer; control. new text end

new text begin (a) Except as otherwise provided under
paragraph (b), a producer or bail bond agency must transfer all cash and noncash collateral
that the producer or bail bond agency receives to the surety.
new text end

new text begin (b) A surety may, at the surety's discretion, permit: (1) a producer to transfer all cash
and noncash collateral that the producer receives to the bail bond agency; and (2) the bail
bond agency to retain possession and control over the cash and noncash collateral without
transferring the cash and noncash collateral to the surety. If a surety exercises the surety's
discretion under this paragraph, the bail bond agency assumes the surety's responsibilities
and responsibilities under this section. A producer is prohibited from retaining possession
or control of cash or noncash collateral beyond the time periods established in this section.
new text end

new text begin Subd. 3. new text end

new text begin Cash collateral trust account. new text end

new text begin (a) All cash collateral must be deposited into
a cash collateral account maintained by a surety or bail bond agency as provided in
subdivision 2, paragraph (b), within seven business days of the date the cash collateral is
received.
new text end

new text begin (b) All checks, money orders, wire transfers, or similar money transfer for collateral
must be made payable to the bail bond agency and deposited into the surety's or bail bond
agency's collateral account within ten business days of the date the payment was received.
new text end

new text begin (c) When required by law, a bail bond agency or producer must: (1) file an IRS Form
8300 and informational notice; and (2) retain a copy of the filed IRS Form 8300 and
informational notice in the bail bond agency's or producer's files.
new text end

new text begin Subd. 4. new text end

new text begin Separate cash collateral account. new text end

new text begin At the surety's discretion, the surety or a
bail bond agency may maintain a separate cash collateral trust account. A cash collateral
trust account may be an interest-bearing account or a noninterest-bearing account. If the
separate cash collateral trust account is an interest-bearing account, the interest earned is
for the benefit of the depositor.
new text end

new text begin Subd. 5. new text end

new text begin Surety liable. new text end

new text begin The surety is liable to return any cash or noncash collateral that
a producer or bail bond agency collects, less any amounts owed under subdivision 9,
paragraph (b), even if the collected collateral is not transferred to the surety.
new text end

new text begin Subd. 6. new text end

new text begin Prohibitions. new text end

new text begin (a) A surety, bail bond agency, or producer is prohibited from
collecting cash collateral in excess of the bond's penal sum. A surety, bail bond agency, or
producer is prohibited from collecting physical collateral that may be considered
unreasonably higher than the excess of the bond's penal sum, based upon fair market value,
less any outstanding liabilities or lien at the time of the transaction.
new text end

new text begin (b) A surety, bail bond agency, or producer is prohibited from using collateral for personal
benefit or gain.
new text end

new text begin (c) A surety, bail bond agency, or producer is prohibited from taking a quitclaim deed
on real property as collateral for a bond.
new text end

new text begin Subd. 7. new text end

new text begin Collateral log. new text end

new text begin (a) A bail bond agency or producer must maintain a collateral
log that includes:
new text end

new text begin (1) the power of attorney number;
new text end

new text begin (2) the principal's name;
new text end

new text begin (3) the depositor's name;
new text end

new text begin (4) the cash collateral amount, including whether the cash collateral is being held in an
interest-bearing account;
new text end

new text begin (5) if the collateral is noncash collateral, a detailed description of the collateral;
new text end

new text begin (6) the date the collateral was taken; and
new text end

new text begin (7) the dates the collateral was sent to the surety, returned to the depositor, liquidated,
or applied to a loss or cost incurred by the producer, bail bond agency, or surety.
new text end

new text begin (b) For purposes of paragraph (a), an indemnity agreement does not constitute collateral
and is not required to be included in the collateral log. For purposes of paragraph (a), clause
(7), the amount of a loss incurred must be listed separately from other costs in the collateral
log.
new text end

new text begin Subd. 8. new text end

new text begin Mortgages and deeds of trust. new text end

new text begin (a) A mortgage or deed of trust taken as
collateral for a bond must name the surety as a mortgagee. At the discretion of the surety,
a bail bond agency may be named as the mortgagee in lieu of the surety being named as the
mortgagee.
new text end

new text begin (b) A producer is prohibited from being named as a mortgagee for a mortgage or deed
of trust taken as collateral for a bond.
new text end

new text begin Subd. 9. new text end

new text begin Return of collateral. new text end

new text begin (a) A surety or bail bond agency that controls the collateral
must return cash and noncash collateral to the depositor named in the collateral receipt
within 21 days of the date the depositor provides the surety or bail bond agency with written
proof that the bond has been discharged.
new text end

new text begin (b) If the depositor owes the surety, bail bond agency, or producer a premium; is liable
for a loss or expense related to a breach of the bond; or is liable pursuant to the terms of an
indemnity or other agreement, the surety or bail bond agency may retain from the collateral
all money required to satisfy the depositor's debts.
new text end

new text begin (c) If all of the depositor's debts secured by collateral are satisfied, the surety or bail
bond agency must provide documentation to release any liens, security interests, mortgages,
or other security interests that were filed or obtained in relation to the collateral. The
documentation must be provided within 21 days of the date the depositor provides the surety
or bail bond agency with written proof that the bond has been discharged.
new text end

new text begin Subd. 10. new text end

new text begin Bond or indemnity agreement; breach. new text end

new text begin If a bond or indemnity agreement
is breached and the surety, bail bond agency, or producer suffers a loss, the surety or bail
bond agency that controls the collateral must send to the depositor written notice that notifies
the depositor that the surety or bail bond agency intends to liquidate noncash collateral. The
written notice must be sent by certified mail to the depositor's last known address at least
30 days before the date the surety or bail bond agency liquidates the noncash collateral.
new text end

new text begin Subd. 11. new text end

new text begin Compliance with Minnesota law. new text end

new text begin Any action taken to enforce or foreclose
on cash or noncash collateral must comply with Minnesota law.
new text end

new text begin Subd. 12. new text end

new text begin Collateral documentation; audit and inspection. new text end

new text begin (a) All collateral and related
documentation held in trust by the surety or bail bond agency must be made available for
immediate audit and inspection by the department.
new text end

new text begin (b) All collateral and related documentation held in trust by the bail bond agency must
be made available for immediate audit and inspection by the surety.
new text end

Sec. 35.

new text begin [60M.04] PRODUCER AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Premium audits. new text end

new text begin (a) By April 30 each year, a surety must audit each
licensed bail bond producer's bonds written during the previous calendar year to ensure the
licensed bail bond producer has complied with this subdivision.
new text end

new text begin (b) The premium audits must include a review of an adequate sample of bonds written
by each bail bond producer. A review sample is adequate if it consists of the lesser of: (1)
20 percent of the bonds written by the bail bond producer; (2) 24 bonds; or (3) all of the
bonds written by the bail bond producer, if the bail bond producer wrote fewer than 12
bonds during the previous calendar year. The audit sample must include the four largest
bonds written by the bail bond producer and four bonds that charged an alternative premium
under section 60M.02, subdivision 5, if applicable. Of the remaining bonds audited and to
the extent the quantity of bonds supports the percentages, 50 percent must be randomly
selected bonds with a penal sum that is $10,000 or less, and 50 percent must be randomly
selected bonds with a penal sum that is greater than $10,000.
new text end

new text begin (c) The premium audit must be conducted at the producer's office or the bail bond
agency's office, depending on which entity maintains the physical records. The surety must
not disclose to the producer or bail bond agency, or anyone affiliated with the surety or bail
bond agency, which files the surety intends to audit until the surety's on-site audit of the
producer begins.
new text end

new text begin (d) For each bond audited, the surety must confirm that:
new text end

new text begin (1) the proper premium was charged and collected, including a review of the premium
account statements and deposit slips;
new text end

new text begin (2) a proper premium receipt is in the producer's file;
new text end

new text begin (3) if the full premium was not paid before the bond was posted, a proper promissory
note was executed; and
new text end

new text begin (4) if the premium was not paid as required, the producer complied with section 60M.02,
subdivision 6.
new text end

new text begin (e) An annual premium audit under this section must also include a follow-up review
of each bond audited the previous year for which full premium had not yet been collected
at the time the audit occurred. For each bond subject to a follow-up review, the surety must:
new text end

new text begin (1) review the premium account and deposit slips to confirm that the full premium was
collected; or
new text end

new text begin (2) if full payment of the premium was not received, confirm that the producer complied
with section 60M.02, subdivision 6.
new text end

new text begin (f) A bail bond agency or producer is prohibited from acting on behalf of the surety to
conduct the bail bond agency's or producer's own bail bond agency or producer audits.
new text end

new text begin Subd. 2. new text end

new text begin Collateral audits. new text end

new text begin (a) By April 30 each year, a surety must audit each licensed
bail bond producer's bonds written during the previous calendar year to ensure the licensed
bail bond producer has complied with this subdivision.
new text end

new text begin (b) A collateral audit under this subdivision must include confirmation that:
new text end

new text begin (1) a collateral log was maintained;
new text end

new text begin (2) a cash collateral account exists;
new text end

new text begin (3) the balance of the cash collateral indicated on the collateral log is identical to the
amount held in the collateral trust account; and
new text end

new text begin (4) a collateral receipt exists for collateral collected, as represented by a sampling of the
lesser of: (i) 20 percent of all bonds secured by collateral; or (ii) 12 bonds that were secured
by collateral.
new text end

new text begin Subd. 3. new text end

new text begin Audits report. new text end

new text begin (a) By May 31 each year, a surety must prepare a report of the
audits conducted under this section during that year. The report must include:
new text end

new text begin (1) a list of the bonds audited under subdivision 1 for each producer, including the power
of attorney number used for each audited bond and whether full premium payment was
made by the date the audit occurred;
new text end

new text begin (2) a list of the bonds included in a follow-up review of the previous year's audit,
including whether full premium payment was collected by the date the audit occurred;
new text end

new text begin (3) the compliance certifications required under section 60M.07, subdivision 4; and
new text end

new text begin (4) details regarding any violations discovered during the audit or a statement that no
violations were discovered, as applicable.
new text end

new text begin (b) The annual report under this subdivision must be maintained for a period of at least
36 months from the date the report is complete. Annual reports must be submitted to the
commissioner by June 30 each year.
new text end

Sec. 36.

new text begin [60M.05] SOLICITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Solicitation generally. new text end

new text begin (a) A producer is prohibited from, in or on the
grounds of a jail, prison, or other location where an incarcerated person is confined, or in
or on the grounds of a court unless requested by the principal, a potential indemnitor, or the
legal counsel of a principal:
new text end

new text begin (1) approaching, enticing, inviting, or soliciting a person to use a bail bonds's services;
new text end

new text begin (2) distributing, displaying, or wearing an item that advertises a bail bonds's services;
new text end

new text begin (3) no producer or bail bond agency is permitted to solicit by calling or leaving messages
for principals on jail phones or any other messaging devices available to principals, while
in custody; or
new text end

new text begin (4) no producer or bail bond agency is permitted to place money on the canteen or books
of any individual held in custody.
new text end

new text begin (b) Notwithstanding paragraph (a), clause (3), permissible print advertising in a jail is
limited to:
new text end

new text begin (1) a listing in a telephone directory; and
new text end

new text begin (2) posting the producer's or bail bond agency's name, address, and telephone number
in a designated location within the jail, as approved by the jail.
new text end

new text begin Subd. 2. new text end

new text begin Identification; marketing material. new text end

new text begin A producer is prohibited from wearing
or displaying any information, other than identification approved by the surety or bail bond
agency, which constitutes marketing material that a surety or bail bond agency must approve
and maintain under Minnesota Rules, chapter 2790. A producer is prohibited from displaying
any information constituting marketing material in or on the property or grounds of: (1) a
jail, prison, or other location where incarcerated people are confined; or (2) a court.
new text end

new text begin Subd. 3. new text end

new text begin Other prohibited conduct. new text end

new text begin (a) A producer is prohibited from loitering in or
about the courthouse, jail, or any other place where individuals are held in custody.
new text end

new text begin (b) A producer is prohibited from making unauthorized and unsolicited cold calls without
having first spoken with the principal.
new text end

new text begin (c) A producer is prohibited from soliciting a bond to a person by recorded or electronic
communication, or by live telephone contact, unless the producer otherwise complies with
applicable state and federal law, including but not limited to:
new text end

new text begin (1) the National Do Not Call Registry under Code of Federal Regulations, title 16, part
310; and
new text end

new text begin (2) the Telephone Consumer Protection Act of 1991, Code of Federal Regulations, title
47, part 64.1200.
new text end

new text begin (d) A surety, bail bond agency, or producer is prohibited from obtaining a credit check
on a person unless the person has authorized the surety, bail bond agency, or producer to
do so in writing. The surety, bail bond agency, or producer must retain the written
authorization provided by the person subject to the credit check.
new text end

new text begin Subd. 4. new text end

new text begin Compliance with other law. new text end

new text begin (a) A surety, bail bond agency, and producer
must comply with all federal and state privacy laws related to information provided to a
producer during the application process and during bond underwriting by a bond principal,
indemnitor, or other person.
new text end

new text begin (b) A surety, bail bond agency, and producer must comply with sections 60K.46,
subdivision 6; 72A.494; 72A.496, subdivision 1; 72A.501; and 72A.502, subdivision 1.
new text end

new text begin (c) A surety, bail bond agency, and producer must receive preauthorization before
collecting and disclosing personal or privileged information about an applicant or proposed
insured, and must provide all notices otherwise required by Minnesota law.
new text end

new text begin (d) A surety, bail bond agency, and producer must otherwise comply with all applicable
Minnesota law.
new text end

new text begin Subd. 5. new text end

new text begin Insurance transaction. new text end

new text begin The act of soliciting, underwriting, negotiating, or
selling a bail bond constitutes an insurance transaction.
new text end

Sec. 37.

new text begin [60M.06] UNLICENSED INDIVIDUALS; NO REBATES OR PAYMENT.
new text end

new text begin (a) With the exception of a contracted bail enforcement agent offering a reward for
information that assists in the location and apprehension of a principal under section 629.63,
a surety, bail bond agency, or producer is prohibited from paying a fee or commission, or
otherwise giving or promising anything of value, to: (1) a jailer, police officer, peace officer,
or any other person who has the power to arrest or hold an individual in custody; or (2) a
judge, public official, or public employee.
new text end

new text begin (b) A surety, bail bond agency, or producer is prohibited from paying a fee or rebate, or
otherwise giving or promising anything of value, to the individual seeking the producer's
services or the individual seeking the producer's services on another individual's behalf.
new text end

new text begin (c) A surety, bail bond agency, or producer is prohibited from paying a fee or commission,
or otherwise giving or promising anything of value, to a person for selling, soliciting, or
negotiating a bail bond if the person is not properly licensed as a producer.
new text end

new text begin (d) A surety, bail bond agency, or producer is prohibited from paying a fee, rebate, or
commission, or otherwise giving or promising anything of value, to an inmate for referring
business or for any other reason related to soliciting, negotiating, or selling a bail bond.
new text end

Sec. 38.

new text begin [60M.07] OTHER PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Compliance with standards of conduct. new text end

new text begin A producer must comply with
the Minnesota Court Administrator's Office's bail bond procedures and standards of conduct,
including but not limited to while in or on the property of courts, jails, or other detention
facilities in Minnesota. A surety or bail bond agency must require the surety or bail bond
agency's producers to affirm that the producer complies with any changes to the bail bond
procedures and standards of conduct as the changes are posted to the Minnesota state court
website or the Minnesota Court Administrator's Office's website.
new text end

new text begin Subd. 2. new text end

new text begin No waiver. new text end

new text begin A producer is prohibited from soliciting or accepting a waiver of
any requirement under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Record maintenance. new text end

new text begin (a) A bail bond agency and producer must maintain the
following records on each bond for at least seven years after the date the bond is terminated:
new text end

new text begin (1) power of attorney;
new text end

new text begin (2) premium receipts;
new text end

new text begin (3) the promissory note for unpaid premium, if any;
new text end

new text begin (4) the cash bond amount set by the court, if an amount less than the filed rate is accepted
for the premium;
new text end

new text begin (5) all documents related to any lawsuit filed to collect the premium;
new text end

new text begin (6) indemnity agreements;
new text end

new text begin (7) collateral receipts, if any;
new text end

new text begin (8) proof that collateral was returned, if any;
new text end

new text begin (9) proof of bond exoneration or forfeiture payment;
new text end

new text begin (10) all records relating to liquidating and converting collateral, including fees or costs;
and
new text end

new text begin (11) proof of any expenses incurred or losses paid by the surety, bail bond agency, or
producer.
new text end

new text begin (b) A bail bond agency and producer must maintain all premium account, collateral
account, and operating account bank records, including deposit slips, for at least seven years
after the records are made available.
new text end

new text begin (c) All records that a bail bond agency or producer maintain under this chapter must be
kept in the bail bond agency or producer's office or storage location, as applicable. If a bail
bond agency or producer's relationship with a surety is terminated, the information and
documentation must be immediately transferred to:
new text end

new text begin (1) the bail bond agency, if the producer is terminated; or
new text end

new text begin (2) the surety, if the bail bond agency is terminated.
new text end

new text begin (d) A bail bond agency and producer's records must be available for the commissioner
or the surety to inspect, with or without notice.
new text end

new text begin Subd. 4. new text end

new text begin Compliance certification new text end new text begin . new text end

new text begin (a) During the surety's annual audit of a producer,
the producer must sign a compliance certification form that attests to the producer's
compliance with this chapter during the previous calendar year.
new text end

new text begin (b) Before a producer is appointed by a surety and at each license renewal thereafter, a
producer must sign an affidavit of compliance form in which the producer acknowledges
the producer is familiar and continually complies with the requirements under this chapter.
The surety must retain completed affidavits and send requested affidavits to the commissioner
within ten days of the date an affidavit is requested.
new text end

new text begin (c) The commissioner must establish the compliance certification and affidavit of
compliance forms for use under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Producer termination; notice. new text end

new text begin (a) If a producer's relationship with a surety is
voluntarily or involuntarily terminated due to a violation of this chapter or because the
surety determined the producer violated this chapter during an annual audit, the surety must,
within 30 days of the date the producer is terminated, provide the commissioner with the
terminated producer's name and the reason the producer was terminated.
new text end

new text begin (b) Another surety is prohibited from appointing a producer subject to a termination
under paragraph (a) unless the department approves the appointment.
new text end

new text begin Subd. 6. new text end

new text begin Access to information. new text end

new text begin A surety, bail bonds agency, and producer are considered
a government associated entity and are allowed to apply and be granted access to the
Minnesota Government Access system under the Court Access Rules.
new text end

new text begin Subd. 7. new text end

new text begin Surrender of a principal for bail revocation. new text end

new text begin The courts, jails, and sheriff
offices in Minnesota must comply with section 629.63, allowing for a principal to be
surrendered and received by the jail of the county that the bail bond was originated from
and to be held in custody until the principal can have a court hearing where the surety, bail
bond agency, or producer can give evidence and make motion for the revocation and
discharge of the bail bond.
new text end

new text begin Subd. 8. new text end

new text begin Forfeiture timing requirement. new text end

new text begin The court must order a bail bond forfeited
and send notice to the surety, bail bond agency, or producer no later than 30 days from the
date of a principal failing to appear at a scheduled hearing. If a court fails to forfeit a bail
bond within 30 days of a principal failing to appear or fail to send notice within seven days
of the forfeiture to the surety, bail bond agency, or producer, the court must allow for a
reinstatement and discharge of the bail bond without penalty. If a court fails to take action
against the bail bond within 30 days of a principal failing to appear at a hearing, the court
must allow for revocation and discharge without penalty.
new text end

Sec. 39.

Minnesota Statutes 2023 Supplement, section 80A.50, is amended to read:

80A.50 SECTION 302; FEDERAL COVERED SECURITIES; SMALL
CORPORATE OFFERING REGISTRATION.

(a) Federal covered securities.

(1) Required filing of records. With respect to a federal covered security, as defined
in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. Section 77r(b)(2)), that is not
otherwise exempt under sections 80A.45 through 80A.47, a rule adopted or order issued
under this chapter may require the filing of any or all of the following records:

(A) before the initial offer of a federal covered security in this state, all records that are
part of a federal registration statement filed with the Securities and Exchange Commission
under the Securities Act of 1933 and a consent to service of process complying with section
80A.88 signed by the issuer;

(B) after the initial offer of the federal covered security in this state, all records that are
part of an amendment to a federal registration statement filed with the Securities and
Exchange Commission under the Securities Act of 1933; and

(C) to the extent necessary or appropriate to compute fees, a report of the value of the
federal covered securities sold or offered to persons present in this state, if the sales data
are not included in records filed with the Securities and Exchange Commission.

(2) Notice filing effectiveness and renewal. A notice filing under subsection (a) is
effective for one year commencing on the later of the notice filing or the effectiveness of
the offering filed with the Securities and Exchange Commission. On or before expiration,
the issuer may renew a notice filing by filing a copy of those records filed by the issuer with
the Securities and Exchange Commission that are required by rule or order under this chapter
to be filed. A previously filed consent to service of process complying with section 80A.88
may be incorporated by reference in a renewal. A renewed notice filing becomes effective
upon the expiration of the filing being renewed.

(3) Notice filings for federal covered securities under section 18(b)(4)(D). With
respect to a security that is a federal covered security under Section 18(b)(4)(D) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(4)(D)), a rule under this chapter may
require a notice filing by or on behalf of an issuer to include a copy of Form D, including
the Appendix, as promulgated by the Securities and Exchange Commission, and a consent
to service of process complying with section 80A.88 signed by the issuer not later than 15
days after the first sale of the federal covered security in this state.

(4) Stop orders. Except with respect to a federal security under Section 18(b)(1) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(1)), if the administrator finds that there is
a failure to comply with a notice or fee requirement of this section, the administrator may
issue a stop order suspending the offer and sale of a federal covered security in this state.
If the deficiency is corrected, the stop order is void as of the time of its issuance and no
penalty may be imposed by the administrator.

(b) Small corporation offering registration.

(1) Registration required. A security meeting the conditions set forth in this section
may be registered as set forth in this section.

(2) Availability. Registration under this section is available only to the issuer of securities
and not to an affiliate of the issuer or to any other person for resale of the issuer's securities.
The issuer must be organized under the laws of one of the states or possessions of the United
States. The securities offered must be exempt from registration under the Securities Act of
1933 pursuant to Rule 504 of Regulation D (15 U.S.C. Section 77c).

(3) Disqualification. Registration under this section is not available to any of the
following issuers:

(A) an issuer subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934;

(B) an investment company;

(C) a development stage company that either has no specific business plan or purpose
or has indicated that its business plan is to engage in a merger or acquisition with an
unidentified company or companies or other entity or person;

(D) an issuer if the issuer or any of its predecessors, officers, directors, governors,
partners, ten percent stock or equity holders, promoters, or any selling agents of the securities
to be offered, or any officer, director, governor, or partner of the selling agent:

(i) has filed a registration statement that is the subject of a currently effective registration
stop order entered under a federal or state securities law within five years before the filing
of the small corporate offering registration application;

(ii) has been convicted within five years before the filing of the small corporate offering
registration application of a felony or misdemeanor in connection with the offer, purchase,
or sale of a security or a felony involving fraud or deceit, including, but not limited to,
forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to
defraud;

(iii) is currently subject to a state administrative enforcement order or judgment entered
by a state securities administrator or the Securities and Exchange Commission within five
years before the filing of the small corporate offering registration application, or is subject
to a federal or state administrative enforcement order or judgment in which fraud or deceit,
including, but not limited to, making untrue statements of material facts or omitting to state
material facts, was found and the order or judgment was entered within five years before
the filing of the small corporate offering registration application;

(iv) is currently subject to an order, judgment, or decree of a court of competent
jurisdiction temporarily restraining or enjoining, or is subject to an order, judgment, or
decree of a court of competent jurisdiction permanently restraining or enjoining the party
from engaging in or continuing any conduct or practice in connection with the purchase or
sale of any security or involving the making of a false filing with a state or with the Securities
and Exchange Commission entered within five years before the filing of the small corporate
offering registration application; or

(v) is subject to a state's administrative enforcement order, or judgment that prohibits,
denies, or revokes the use of an exemption for registration in connection with the offer,
purchase, or sale of securities,

(I) except that clauses (i) to (iv) do not apply if the person subject to the disqualification
is duly licensed or registered to conduct securities-related business in the state in which the
administrative order or judgment was entered against the person or if the dealer employing
the party is licensed or registered in this state and the form BD filed in this state discloses
the order, conviction, judgment, or decree relating to the person, and

(II) except that the disqualification under this subdivision is automatically waived if the
state securities administrator or federal agency that created the basis for disqualification
determines upon a showing of good cause that it is not necessary under the circumstances
to deny the registration.

(4) Filing and effectiveness of registration statement. A small corporate offering
registration statement must be filed with the administrator. If no stop order is in effect and
no proceeding is pending under section 80A.54, such registration statement shall become
effective automatically at the close of business on the 20th day after filing of the registration
statement or the last amendment of the registration statement or at such earlier time as the
administrator may designate by rule or order. For the purposes of a nonissuer transaction,
other than by an affiliate of the issuer, all outstanding securities of the same class identified
in the small corporate offering registration statement as a security registered under this
chapter are considered to be registered while the small corporate offering registration
statement is effective. A small corporate offering registration statement is effective for one
year after its effective date or for any longer period designated in an order under this chapter.
A small corporate offering registration statement may be withdrawn only with the approval
of the administrator.

(5) Contents of registration statement. A small corporate offering registration statement
under this section shall be on Form U-7, including exhibits required by the instructions
thereto, as adopted by the North American Securities Administrators Association, or such
alternative form as may be designated by the administrator by rule or order and must include:

(A) a consent to service of process complying with section 80A.88;

(B) a statement of the type and amount of securities to be offered and the amount of
securities to be offered in this state;

(C) a specimen or copy of the security being registered, unless the security is
uncertificated, a copy of the issuer's articles of incorporation and bylaws or their substantial
equivalents in effect, and a copy of any indenture or other instrument covering the security
to be registered;

(D) a signed or conformed copy of an opinion of counsel concerning the legality of the
securities being registered which states whether the securities, when sold, will be validly
issued, fully paid, and nonassessable and, if debt securities, binding obligations of the issuer;

(E) the states (i) in which the securities are proposed to be offered; (ii) in which a
registration statement or similar filing has been made in connection with the offering
including information as to effectiveness of each such filing; and (iii) in which a stop order
or similar proceeding has been entered or in which proceedings or actions seeking such an
order are pending;

(F) a copy of the offering document proposed to be delivered to offerees; and

(G) a copy of any other pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the offering and
any solicitation of interest used in compliance with section 80A.46(17)(B).

(6) Copy to purchaser. A copy of the offering document as filed with the administrator
must be delivered to each person purchasing the securities prior to sale of the securities to
such person.

(c) Offering limit. Offers and sales of securities under a small corporate offering
registration as set forth in this section are allowed up to the limit prescribed by Code of
Federal Regulations, title 17, part 230.504 (b)(2), as amended.

new text begin (d) Regulation A - Tier 2 filing requirements.
new text end

new text begin (1) Initial filing. An issuer planning to offer and sell securities in Minnesota in an
offering exempt under Tier 2 of federal Regulation A must, at least 21 calendar days before
the date of the initial sale of securities in Minnesota, submit to the administrator:
new text end

new text begin (A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the
documents filed with the Securities Exchange Commission; and
new text end

new text begin (B) a consent to service of process on Form U-2, if consent to service of process is not
provided in the Regulation A - Tier 2 offering notice filing form.
new text end

new text begin The initial notice filing made in Minnesota is effective for 12 months after the date the
filing is made.
new text end

new text begin (2) Renewal. For each additional 12-month period in which the same offering is
continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew
the notice filing by filing (i) the Regulation A - Tier 2 offering notice filing form marked
"renewal," or (ii) a cover letter or other document requesting renewal. The renewal filing
must be made on or before the date notice filing expires.
new text end

new text begin (3) Amendment. An issuer may increase the amount of securities offered in Minnesota
by submitting a Regulation A - Tier 2 offering notice filing form or other document
describing the transaction.
new text end

Sec. 40.

Minnesota Statutes 2022, section 80A.61, is amended to read:

80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
REPRESENTATIVE.

(a) Application for initial registration by broker-dealer, agent, investment adviser,
or investment adviser representative. A person shall register as a broker-dealer, agent,
investment adviser, or investment adviser representative by filing an application and a
consent to service of process complying with section 80A.88, and paying the fee specified
in section 80A.65 and any reasonable fees charged by the designee of the administrator for
processing the filing. The application must contain:

(1) the information or record required for the filing of a uniform application; and

(2) upon request by the administrator, any other financial or other information or record
that the administrator determines is appropriate.

(b) Amendment. If the information or record contained in an application filed under
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
shall promptly file a correcting amendment.

(c) Effectiveness of registration. If an order is not in effect and a proceeding is not
pending under section 80A.67, registration becomes effective at noon on the 45th day after
a completed application is filed, unless the registration is denied. A rule adopted or order
issued under this chapter may set an earlier effective date or may defer the effective date
until noon on the 45th day after the filing of any amendment completing the application.

(d) Registration renewal. A registration is effective until midnight on December 31 of
the year for which the application for registration is filed. Unless an order is in effect under
section 80A.67, a registration may be automatically renewed each year by filing such records
as are required by rule adopted or order issued under this chapter, by paying the fee specified
in section 80A.65, and by paying costs charged by the designee of the administrator for
processing the filings.

(e) Additional conditions or waivers. A rule adopted or order issued under this chapter
may impose such other conditions, not inconsistent with the National Securities Markets
Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
part, specific requirements in connection with registration as are in the public interest and
for the protection of investors.

(f) Funding portal registration. A funding portal that has its principal place of business
in the state of Minnesota shall register with the state of Minnesota by filing with the
administrator a copy of the information or record required for the filing of an application
for registration as a funding portal in the manner established by the Securities and Exchange
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
any rule adopted or order issued, and any amendments thereto.

(g) Application for investment adviser representative registration.

(1) The application for initial registration as an investment adviser representative pursuant
to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
Industry Registration or Transfer) in accordance with the form instructions and by filing
the form U-4 with the IARD. The application for initial registration must also include the
following:

(i) proof of compliance by the investment adviser representative with the examination
requirements of:

(A) the Uniform Investment Adviser Law Examination (Series 65); or

(B) new text begin the General Securities Representative Examination (Series 7) and new text end the Uniform
Combined State Law Examination (Series 66);

(ii) any other information the administrator may reasonably require.

(2) The application for the annual renewal registration as an investment adviser
representative shall be filed with the IARD.

(3)(i) The investment adviser representative is under a continuing obligation to update
information required by Form U-4 as changes occur;

(ii) An investment adviser representative and the investment adviser must file promptly
with the IARD any amendments to the representative's Form U-4; and

(iii) An amendment will be considered to be filed promptly if the amendment is filed
within 30 days of the event that requires the filing of the amendment.

(4) An application for initial or renewal of registration is not considered filed for purposes
of section 80A.58 until the required fee and all required submissions have been received
by the administrator.

(5) The application for withdrawal of registration as an investment adviser representative
pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
with the IARD.

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Minnesota Statutes 2022, section 80A.66, is amended to read:

80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.

(a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
minimum financial requirements for broker-dealers registered or required to be registered
under this chapter and investment advisers registered or required to be registered under this
chapter.

(b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
chapter and an investment adviser registered or required to be registered under this chapter
shall file such financial reports as are required by a rule adopted or order issued under this
chapter. If the information contained in a record filed under this subsection is or becomes
inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
amendment.

(c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22):

(1) a broker-dealer registered or required to be registered under this chapter and an
investment adviser registered or required to be registered under this chapter shall make and
maintain the accounts, correspondence, memoranda, papers, books, and other records
required by rule adopted or order issued under this chapter;

(2) broker-dealer records required to be maintained under paragraph (1) may be
maintained in any form of data storage acceptable under Section 17(a) of the Securities
Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
administrator; and

(3) investment adviser records required to be maintained under paragraph (d)(1) may
be maintained in any form of data storage required by rule adopted or order issued under
this chapter.

(d) Records and reports of private funds.

(1) In general. An investment adviser to a private fund shall maintain such records of,
and file with the administrator such reports and amendments thereto, that an exempt reporting
adviser is required to file with the Securities and Exchange Commission pursuant to SEC
Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.

(2) Treatment of records. The records and reports of any private fund to which an
investment adviser provides investment advice shall be deemed to be the records and reports
of the investment adviser.

(3) Required information. The records and reports required to be maintained by an
investment adviser, which are subject to inspection by a representative of the administrator
at any time, shall include for each private fund advised by the investment adviser, a
description of:

(A) the amount of assets under management;

(B) the use of leverage, including off-balance-sheet leverage, as to the assets under
management;

(C) counterparty credit risk exposure;

(D) trading and investment positions;

(E) valuation policies and practices of the fund;

(F) types of assets held;

(G) side arrangements or side letters, whereby certain investors in a fund obtain more
favorable rights or entitlements than other investors;

(H) trading practices; and

(I) such other information as the administrator determines is necessary and appropriate
in the public interest and for the protection of investors, which may include the establishment
of different reporting requirements for different classes of fund advisers, based on the type
or size of the private fund being advised.

(4) Filing of records. A rule or order under this chapter may require each investment
adviser to a private fund to file reports containing such information as the administrator
deems necessary and appropriate in the public interest and for the protection of investors.

(e) Audits or inspections. The records of a broker-dealer registered or required to be
registered under this chapter and of an investment adviser registered or required to be
registered under this chapter, including the records of a private fund described in paragraph
(d) and the records of investment advisers to private funds, are subject to such reasonable
periodic, special, or other audits or inspections by a representative of the administrator,
within or without this state, as the administrator considers necessary or appropriate in the
public interest and for the protection of investors. An audit or inspection may be made at
any time and without prior notice. The administrator may copy, and remove for audit or
inspection copies of, all records the administrator reasonably considers necessary or
appropriate to conduct the audit or inspection. The administrator may assess a reasonable
charge for conducting an audit or inspection under this subsection.

(f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
under this chapter may require a broker-dealer or investment adviser that has custody of or
discretionary authority over funds or securities of a customer or client to obtain insurance
or post a bond or other satisfactory form of security in an amount of at least $25,000, but
not to exceed $100,000. The administrator may determine the requirements of the insurance,
bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
of security may not be required of a broker-dealer registered under this chapter whose net
capital exceeds, or of an investment adviser registered under this chapter whose minimum
financial requirements exceed, the amounts required by rule or order under this chapter.
The insurance, bond, or other satisfactory form of security must permit an action by a person
to enforce any liability on the insurance, bond, or other satisfactory form of security if
instituted within the time limitations in section 80A.76(j)(2).

(g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
customer except under the supervision of a broker-dealer and an investment adviser
representative may not have custody of funds or securities of a client except under the
supervision of an investment adviser or a federal covered investment adviser. A rule adopted
or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
regarding custody of funds or securities of a customer and on an investment adviser regarding
custody of securities or funds of a client.

(h) Investment adviser brochure rule. With respect to an investment adviser registered
or required to be registered under this chapter, a rule adopted or order issued under this
chapter may require that information or other record be furnished or disseminated to clients
or prospective clients in this state as necessary or appropriate in the public interest and for
the protection of investors and advisory clients.

(i) Continuing education. A rule adopted or order issued under this chapter may require
an individual registered under section 80A.57 new text begin or 80A.58 new text end to participate in a continuing
education program approved by the Securities and Exchange Commission and administered
by a self-regulatory organization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 42.

Minnesota Statutes 2022, section 80C.05, subdivision 3, is amended to read:

Subd. 3.

Escrow or impoundment of fees and other funds by commissioner.

If the
commissioner finds that the applicant has failed to demonstrate that adequate financial
arrangements have been made to fulfill obligations to provide real estate, improvements,
equipment, inventory, training or other items included in the offering, the commissioner
may by rule or order require the escrow deleted text begin or deleted text end new text begin , new text end impoundment new text begin , or deferral new text end of franchise fees and
other funds paid by the franchisee or subfranchisor until no later than the time of opening
of the franchise business.

Sec. 43.

Minnesota Statutes 2022, section 82B.021, subdivision 26, is amended to read:

Subd. 26.

Standards of professional practice.

"Standards of professional practice"
means new text begin the version of new text end the uniform standards of professional appraisal practice of the
deleted text begin Appraisers deleted text end new text begin Appraisal new text end Standards Board of the Appraisal Foundation in effect deleted text begin as of January
1, 1991, or other version of these standards the commissioner may by order designate deleted text end new text begin on
the date the appraiser signs the appraisal report new text end .

Sec. 44.

Minnesota Statutes 2022, section 82B.094, is amended to read:

82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.

(a) A certified residential real property appraiser or a certified general real property
appraiser, in good standing, may engage a trainee real property appraiser to assist in the
performance of real estate appraisals, provided that the certified residential real property
appraiser or a certified general real property appraiser:

(1) has been licensed in good standing as either a certified residential real property
appraiser or a certified general real property appraiser for the three-year period immediately
preceding the individual's application to become a supervisor;

(2) has completed a deleted text begin six-hour deleted text end course, approved in advance by the commissioner and
provided by an education provider approved by the commissioner, that is specifically oriented
to the requirements and responsibilities of supervisory appraisers and trainee appraisers deleted text begin . A
course approved by the commissioner for the purposes of this section must be given the
course title "Minnesota Supervisor/Trainee Appraiser Course" deleted text end ;

(3) has not been the subject of any license or certificate suspension or revocation or has
not been prohibited from supervising activities in this state or any other state within the
three years immediately preceding the individual's application to become a supervisor;

(4) has no more than three trainee real property appraisers working under supervision
at any one time;

(5) actively and personally supervises the trainee real property appraiser, which includes
ensuring that research of general and specific data has been adequately conducted and
properly reported, application of appraisal principles and methodologies has been properly
applied, that the analysis is sound and adequately reported, and that any analyses, opinions,
or conclusions are adequately developed and reported so that the appraisal report is not
misleading;

(6) discusses with the trainee real property appraiser any necessary and appropriate
changes that are made to a report, involving any trainee appraiser, before it is transmitted
to the client. Changes not discussed with the trainee real property appraiser that are made
by the supervising appraiser must be provided in writing to the trainee real property appraiser
upon completion of the appraisal report;

(7) accompanies the trainee real property appraiser on the inspections of the subject
properties and drive-by inspections of the comparable sales on all appraisal assignments
for which the trainee will perform work until the trainee appraiser is determined to be
competent, in accordance with the competency rule of USPAP for the property type;

(8) accepts full responsibility for the appraisal report by signing and certifying that the
report complies with USPAP; and

(9) reviews and signs the trainee real property appraiser's appraisal report or reports or
if the trainee appraiser is not signing the report, states in the appraisal the name of the trainee
and scope of the trainee's significant contribution to the report.

(b) The supervising appraiser must review and sign the applicable experience log required
to be kept by the trainee real property appraiser.

(c) The supervising appraiser must notify the commissioner within ten days when the
supervision of a trainee real property appraiser has terminated or when the trainee appraiser
is no longer under the supervision of the supervising appraiser.

(d) The supervising appraiser must maintain a separate work file for each appraisal
assignment.

(e) The supervising appraiser must verify that any trainee real property appraiser that is
subject to supervision is properly licensed and in good standing with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 45.

Minnesota Statutes 2022, section 82B.095, subdivision 3, is amended to read:

Subd. 3.

Conformance to Appraisal Qualifications Board criteria.

(a) The
requirements to obtain new text begin and maintain new text end a trainee real property appraiser, licensed real property
appraiser, certified residential real property appraiser, or certified general real property
appraiser license are the education, examination, and experience requirements established
by the Appraiser Qualifications Board of the Appraisal Foundation and published in the
most recent version of the Real Property Appraiser Qualification Criteria.

(b) An applicant must complete the applicable education and experience requirements
before taking the required examination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 46.

Minnesota Statutes 2022, section 82B.13, subdivision 1, is amended to read:

Subdivision 1.

Trainee real property appraiser.

As a prerequisite for licensing as a
trainee real property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has successfully completed a deleted text begin six-hour deleted text end course that is specifically
oriented to the requirements and responsibilities of supervisory appraisers and trainee
appraisers. deleted text begin A course approved by the commissioner for the purposes of this subdivision
must be given the course title "Minnesota Supervisor/Trainee Appraiser Course." This deleted text end new text begin The new text end
course new text begin under this subdivision new text end must not be counted toward qualifying education to upgrade
to a higher level appraiser license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 47.

Minnesota Statutes 2022, section 82B.19, subdivision 1, is amended to read:

Subdivision 1.

License renewals.

deleted text begin (a) deleted text end The commissioner must determine that a licensed
real estate appraiser has met the continuing education requirements of this chapter before
the commissioner renews a license. This determination must be based on, for a resident
appraiser, course completion records uploaded electronically in a manner prescribed by the
commissioner and, for a nonresident appraiser, course completion records presented by
electronic transmission or uploaded electronically in a manner prescribed by the
commissioner.

deleted text begin The basic continuing education requirement for renewal of a license is the completion
by the applicant either as a student or as an instructor, during the immediately preceding
term of licensing, of at least 30 classroom hours of instruction in courses or seminars that
have received the approval of the commissioner. Classroom hour credit must not be accepted
for courses of less than two hours. As part of the continuing education requirements of this
section, the commissioner must require that all real estate appraisers successfully complete
the seven-hour national USPAP update course every two years. If the applicant's immediately
preceding term of licensing consisted of six or more months, but fewer than 24 months, the
applicant must provide evidence of completion of 15 hours of instruction during the license
period. The credit hours required under this section may be credited to a person for distance
education courses that meet Appraiser Qualifications Board criteria. An approved prelicense
education course may be taken for continuing education credit.
deleted text end

deleted text begin (b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete
the seven-hour national USPAP update course every two years.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 48.

Minnesota Statutes 2022, section 115C.08, subdivision 2, is amended to read:

Subd. 2.

Imposing fee.

The board shall notify the commissioner of revenue if the
unencumbered balance of the fund falls below $4,000,000, and within deleted text begin 60 deleted text end new text begin 90 new text end days after
receiving notice from the board, the commissioner of revenue shall impose the fee established
in subdivision 3 on the use of a tank for four calendar months, with payment to be submitted
with each monthly distributor tax return.

Sec. 49. new text begin RULEMAKING.
new text end

new text begin The commissioner of commerce must adopt rules to conform with the changes made in
Minnesota Statutes, sections 80A.66 and 80C.05 with respect to investment advisor
registration continuing education and franchise fees deferral, respectively. The commissioner
of commerce may use the good cause exemption under Minnesota Statutes, section 14.388,
subdivision 1, clause (3), to amend the rule under this section, and Minnesota Statutes,
section 14.386, does not apply except as provided under Minnesota Statutes, section 14.388.
new text end

Sec. 50. new text begin RULEMAKING.
new text end

new text begin The commissioner of commerce must amend Minnesota Rules, part 2675.2170, to comply
with the changes made in this act. The commissioner of commerce may use the good cause
exemption under Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend
the rule under this section. Minnesota Statutes, section 14.386, does not apply, except as
provided under Minnesota Statutes, section 14.388.
new text end

Sec. 51. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 45.014; and 58.08, subdivision 3, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, section 82B.25, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2023 Supplement, section 53B.58, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective January 1, 2026.
new text end

Sec. 52. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective August 1, 2024, and apply to loans executed on or after
that date.
new text end

ARTICLE 3

COMMERCIAL REGULATION AND CONSUMER PROTECTION

Section 1.

Minnesota Statutes 2022, section 45.011, subdivision 1, is amended to read:

Subdivision 1.

Scope.

As used in chapters 45 to 80C, 80E to 83, 155A, 216C, 332, 332A,
332B, 345, and 359, and sections 81A.22 to 81A.37; 123A.21, subdivision 7, paragraph
(a), clause (23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.62 to 386.78;
471.617; deleted text begin and deleted text end 471.982 deleted text begin , deleted text end new text begin ; and 513.80, new text end unless the context indicates otherwise, the terms defined
in this section have the meanings given them.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Transaction hash. new text end

new text begin "Transaction hash" means a unique identifier made up of
a string of characters that act as a record of and provides proof that the transaction was
verified and added to the blockchain.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 3b. new text end

new text begin New customer. new text end

new text begin "New customer" means a consumer transacting at a kiosk in
Minnesota who has been a customer with a virtual currency kiosk operator for less than 96
hours. After the 96-hour period has elapsed from the day of first signing up as a customer
with a virtual currency kiosk operator, the customer is considered an existing customer and
no longer subject to the new customer transaction limit described in this act.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 3c. new text end

new text begin Existing customer. new text end

new text begin "Existing customer" means a consumer transacting at a
kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for more
than a 96-hour period. A new customer automatically converts to an existing customer after
the 96-hour period has elapsed. An existing customer is subject to the transaction limits
described in this act.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Virtual currency address. new text end

new text begin "Virtual currency address" means an alphanumeric
identifier representing a destination for a virtual currency transfer that is associated with a
virtual currency wallet.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Virtual currency kiosk. new text end

new text begin "Virtual currency kiosk" means an electronic terminal
acting as a mechanical agent of the virtual currency kiosk operator to enable the operator
to facilitate the exchange of virtual currency for money, bank credit, or other virtual currency,
including but not limited to by (1) connecting directly to a separate virtual currency exchanger
that performs the actual virtual currency transmission, or (2) drawing upon the virtual
currency in the possession of the electronic terminal's operator.
new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Virtual currency wallet. new text end

new text begin "Virtual currency wallet" means a software
application or other mechanism providing a means for holding, storing, and transferring
virtual currency.
new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Virtual currency kiosk operator. new text end

new text begin "Virtual currency kiosk operator" means
a corporation, limited liability company, limited liability partnership, foreign entity, or any
other person or entity qualified to do business in the state of Minnesota and that operates a
virtual currency kiosk within the state of Minnesota.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 13. new text end

new text begin Virtual currency kiosk transaction. new text end

new text begin "Virtual currency kiosk transaction"
means a transaction conducted or performed, in whole or in part, by electronic means via
a virtual currency kiosk. Virtual currency kiosk transaction also means a transaction made
at a virtual currency kiosk to purchase currency with fiat currency or to sell virtual currency
for fiat currency.
new text end

Sec. 10.

new text begin [53B.75] VIRTUAL CURRENCY KIOSKS.
new text end

new text begin Subdivision 1. new text end

new text begin Disclosures on material risks. new text end

new text begin (a) Before entering into an initial virtual
currency transaction for, on behalf of, or with a person, the virtual currency kiosk operator
must disclose in clear, conspicuous, and legibly written English all material risks generally
associated with virtual currency. The disclosures must be displayed on the screen of the
virtual currency kiosk with the ability for a person to acknowledge the receipt of the
disclosures. The disclosures must include at least the following information:
new text end

new text begin (1) virtual currency is not legal tender, is not backed or insured by the government, and
accounts and value balances are not subject to Federal Deposit Insurance Corporation,
National Credit Union Administration, or Securities Investor Protection Corporation
protections;
new text end

new text begin (2) some virtual currency transactions are deemed to be made when recorded on a public
ledger, which may not be the date or time when the person initiates the transaction;
new text end

new text begin (3) virtual currency's value may be derived from market participants' continued
willingness to exchange fiat currency for virtual currency, which may result in the permanent
and total loss of a particular virtual currency's value if the market for the virtual currency
disappears;
new text end

new text begin (4) there is no assurance that a person who accepts virtual currency as payment today
will do so in the future;
new text end

new text begin (5) the volatility and unpredictability of the price of virtual currency relative to fiat
currency may result in a significant loss over a short period;
new text end

new text begin (6) virtual currency transactions are irreversible and are used by scammers, including
those impersonating loved ones, threatening jail time, stating your identity is stolen, and
insisting you withdraw money from your bank account and purchase cryptocurrency;
new text end

new text begin (7) the nature of virtual currency means that any technological difficulties experienced
by the virtual currency kiosk operator may prevent access to or use of a person's virtual
currency; and
new text end

new text begin (8) any bond maintained by the licensee for the benefit of a person may not cover all
losses the persons incur.
new text end

new text begin (b) The virtual currency kiosk operator must provide an additional disclosure, which
must be acknowledged by the person, written prominently and in bold type, and provided
separately from the disclosures above, stating: "WARNING: LOSSES DUE TO
FRAUDULENT OR ACCIDENTAL TRANSACTIONS ARE NOT RECOVERABLE
AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE."
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) A virtual currency kiosk operator must disclose all relevant
terms and conditions generally associated with the products, services, and activities of the
operator and virtual currency. A virtual currency kiosk operator must make the disclosures
in clear, conspicuous, and legibly written English, displayed on a separate screen from other
disclosures and information, in bold-face sans serif font in a size in line with other texts
displayed. These disclosures must address at least the following:
new text end

new text begin (1) the person's liability for unauthorized virtual currency transactions;
new text end

new text begin (2) the person's right to:
new text end

new text begin (i) stop payment of a virtual currency transfer and the procedure to stop the payment;
new text end

new text begin (ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of
transaction; and
new text end

new text begin (iii) prior notice of a change in the rules or policies of the operator;
new text end

new text begin (3) under what circumstances the operator will, without a court or government order,
disclose a person's account information to third parties; and
new text end

new text begin (4) other disclosures that are customarily provided in connection with the opening of a
person's account.
new text end

new text begin (b) Before each virtual currency transaction for, on behalf of, or with a person, the virtual
currency kiosk operator must disclose the transaction's terms and conditions in clear,
conspicuous, and legibly written English, displayed on a separate screen from other
disclosures and information, in bold-face sans serif font in a size in line with other texts
displayed. These disclosures must address at least the following:
new text end

new text begin (1) the amount of the transaction;
new text end

new text begin (2) any fees, expenses, and charges, including applicable exchange rates;
new text end

new text begin (3) the type and nature of the transaction;
new text end

new text begin (4) a warning that, once completed, the transaction may not be undone;
new text end

new text begin (5) a daily virtual currency transaction limit of no more than $2,000 for new customers;
new text end

new text begin (6) the difference in the virtual currency's sale price versus the current market price; and
new text end

new text begin (7) other disclosures that are customarily given in connection with a virtual currency
transaction.
new text end

new text begin Subd. 3. new text end

new text begin Acknowledgment of disclosures. new text end

new text begin Before completing a transaction, a virtual
currency kiosk operator must ensure that each person who engages in a virtual currency
transaction using the virtual currency operator's kiosk acknowledges receipt of all disclosures
required under this section via confirmation of consent. Additionally, upon a transaction's
completion, the virtual currency operator must provide a person with a physical receipt, or
a virtual receipt sent to their email address or SMS number, containing the following
information:
new text end

new text begin (1) the operator's name and contact information, including a telephone number to answer
questions and register complaints;
new text end

new text begin (2) the type, value, date, and precise time of the transaction, transactional hash, and each
virtual currency address;
new text end

new text begin (3) the fees charged;
new text end

new text begin (4) the exchange rate;
new text end

new text begin (5) a statement of the operator's liability for nondelivery or delayed delivery;
new text end

new text begin (6) a statement of the operator's refund policy; and
new text end

new text begin (7) any additional information the commissioner of commerce may require.
new text end

new text begin Subd. 4. new text end

new text begin New customer hold. new text end

new text begin The first transaction of a new customer must be subject
to a 48-hour holding period in which the customer may reverse and cancel their transaction
for a full refund.
new text end

new text begin Subd. 5. new text end

new text begin Transaction limits. new text end

new text begin (a) There is an established maximum daily transaction
limit of $2,000 for each new customer of a virtual currency kiosk.
new text end

new text begin (b) The maximum daily transaction limit of an existing customer shall be decided by
each virtual currency kiosk operator in compliance with federal law.
new text end

Sec. 11.

Minnesota Statutes 2022, section 58B.02, subdivision 8, is amended to read:

Subd. 8.

Student loan.

"Student loan" means a government, commercial, or foundation
deleted text begin loan deleted text end new text begin extension of credit new text end for actual costs paid for tuition and reasonable education and living
expenses.

Sec. 12.

Minnesota Statutes 2022, section 58B.02, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Lender. new text end

new text begin "Lender" means an entity engaged in the business of securing, making,
or extending student loans. Lender does not include, to the extent that state regulation is
preempted by federal law:
new text end

new text begin (1) a bank, savings banks, savings and loan association, or credit union;
new text end

new text begin (2) a wholly owned subsidiary of a bank or credit union; or
new text end

new text begin (3) an operating subsidiary where each owner is wholly owned by the same bank or
credit union.
new text end

Sec. 13.

Minnesota Statutes 2022, section 58B.03, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Annual report. new text end

new text begin (a) Beginning March 15, 2025, a student loan servicer that
secures, makes, or extends student loans in Minnesota must report to the commissioner on
the form the commissioner provides:
new text end

new text begin (1) a list of all schools attended by borrowers who received a student loan from the
student loan servicer and resided within Minnesota at the time of the transaction and whose
debt is still outstanding, including student loans used to refinance an existing debt;
new text end

new text begin (2) the total outstanding dollar amount owed by borrowers residing in Minnesota who
received student loans from the student loan servicer;
new text end

new text begin (3) the total number of student loans owed by borrowers residing in Minnesota who
received student loans from the student loan servicer;
new text end

new text begin (4) the total outstanding dollar amount and number of student loans owed by borrowers
who reside in Minnesota, associated with each school identified under clause (1);
new text end

new text begin (5) the total dollar amount of student loans provided by the student loan servicer to
borrowers who resided in Minnesota in the prior calendar year;
new text end

new text begin (6) the total outstanding dollar amount and number of student loans owed by borrowers
who resided in Minnesota, associated with each school identified under clause (1), that were
provided in the prior calendar year;
new text end

new text begin (7) the rate of default for borrowers residing in Minnesota who obtained student loans
from the student loan servicer, if applicable;
new text end

new text begin (8) the rate of default for borrowers residing in Minnesota who obtained student loans
from the student loan servicer associated with each school identified under clause (1), if
applicable;
new text end

new text begin (9) the range of initial interest rates for student loans provided by the student loan servicer
to borrowers who resided in Minnesota in the prior calendar year;
new text end

new text begin (10) the total number of borrowers who received student loans under clause (9), and the
percentage of borrowers who received each rate identified under clause (9);
new text end

new text begin (11) the total dollar amount and number of student loans provided in the prior calendar
year by the student loan servicer to borrowers who resided in Minnesota at the time of the
transaction and had a cosigner for the student loans;
new text end

new text begin (12) the total dollar amount and number of student loans provided by the student loan
servicer to borrowers residing in Minnesota used to refinance a prior student loan or federal
student loan in the prior calendar year;
new text end

new text begin (13) the total dollar amount and number of student loans for which the student loan
servicer had sued to collect from a borrower residing in Minnesota in the prior calendar
year;
new text end

new text begin (14) a copy of any model promissory note, agreement, contract, or other instrument used
by the student loan servicer in the previous year to substantiate that a borrower owes a new
debt to the student loan servicer; and
new text end

new text begin (15) any other information considered necessary by the commissioner to assess the total
size and status of the student loan market and well-being of borrowers in Minnesota.
new text end

new text begin (b) A student loan servicer that acquires or assumes student loans in Minnesota must
report to the commissioner on the form the commissioner provides:
new text end

new text begin (1) a list of all schools attended by borrowers residing in Minnesota who used, for
attendance, any outstanding student loans assumed or acquired by the student loan servicer;
new text end

new text begin (2) the total outstanding dollar amount and number of student loans that have been
acquired or assumed by the student loan servicer and owed by borrowers who reside in
Minnesota;
new text end

new text begin (3) the total outstanding dollar amount and number of student loans owed by borrowers
who reside in Minnesota that have been assumed or acquired by the student loan servicer,
associated with each school identified under clause (1);
new text end

new text begin (4) the total dollar amount and number of student loans owed by borrowers who resided
in Minnesota that were acquired or assumed by the student loan servicer in the prior calendar
year;
new text end

new text begin (5) the total dollar amount and number of student loans that were acquired or assumed
by the student loan servicer and owed by borrowers who resided in Minnesota in the prior
year, associated with each school identified under clause (1);
new text end

new text begin (6) the rate of default for student loans acquired or assumed by the student loan servicer,
if applicable;
new text end

new text begin (7) the rate of default for student loans acquired or assumed by the student loan servicer
associated with each school identified under clause (1), if applicable;
new text end

new text begin (8) the total outstanding dollar amount and number of student loans owed by borrowers
residing in Minnesota who had a cosigner for the student loans, if applicable;
new text end

new text begin (9) the total outstanding dollar amount and number of student loans that were acquired
or assumed by the student loan servicer and owed by borrowers residing in Minnesota to
refinance a prior student loan or federal student loan;
new text end

new text begin (10) the total dollar amount and number of student loans for which the student loan
servicer had sued to collect from borrowers residing in Minnesota in the prior calendar year;
and
new text end

new text begin (11) any other information considered necessary by the commissioner to assess the total
size and status of the student loan market and well-being of borrowers in Minnesota.
new text end

new text begin (c) The commissioner of commerce shall share data collected under this subdivision
with the commissioner of higher education.
new text end

Sec. 14.

Minnesota Statutes 2022, section 58B.06, subdivision 4, is amended to read:

Subd. 4.

Transfer of student loan.

(a) If a borrower's student loan servicer changes
pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer
must:

(1) require the new student loan servicer to honor all benefits that were made available,
or which may have become available, to a borrower from the original student loan servicer
new text begin or is authorized under the student loan contract new text end new text begin , including any benefits for which the student
loan borrower has not yet qualified unless that benefit is no longer available under the federal
or state laws and regulations new text end ; and

(2) transfer to the new student loan servicer all information regarding the borrower, the
account of the borrower, and the borrower's student loan, including but not limited to the
repayment status of the student loan and the benefits described in clause (1).

(b) The student loan servicer must complete the transfer under paragraph (a), clause (2),
less than 45 days from the date of the sale, assignment, or transfer of the servicing.

(c) A sale, assignment, or transfer of the servicing must be completed no less than seven
days from the date the next payment is due on the student loan.

(d) A new student loan servicer must adopt policies and procedures to verify that the
original student loan servicer has met the requirements of paragraph (a).

Sec. 15.

Minnesota Statutes 2022, section 58B.06, subdivision 5, is amended to read:

Subd. 5.

Income-driven repayment.

new text begin (a) new text end A student loan servicer must evaluate a borrower
for eligibility for an income-driven repayment program before placing a borrower in
forbearance or default.

new text begin (b) A student loan servicer must provide the following information on the student loan
servicer's website:
new text end

new text begin (1) a description of any income-driven repayment programs available under the student
loan contract or federal or state laws and regulations; and
new text end

new text begin (2) information on the policies and procedures the student loan servicer implements to
facilitate the evaluation of student loan income-driven repayment program requests, including
accurate information regarding any options that may be available to the borrower through
the promissory note or that may have been marketed to the borrower through marketing
materials.
new text end

Sec. 16.

Minnesota Statutes 2022, section 58B.07, subdivision 1, is amended to read:

Subdivision 1.

Misleading borrowers.

A student loan servicer must not directly or
indirectly new text begin employ any scheme, device, or artifice to new text end attempt to new text begin defraud or new text end mislead a borrower.

Sec. 17.

Minnesota Statutes 2022, section 58B.07, subdivision 3, is amended to read:

Subd. 3.

Misapplication of payments.

A student loan servicer must not knowingly or
negligently misapply student loan payments new text begin to the outstanding balance of a student loan new text end .

Sec. 18.

Minnesota Statutes 2022, section 58B.07, subdivision 9, is amended to read:

Subd. 9.

Incorrect information regarding student deleted text begin loan forgiveness deleted text end new text begin loans new text end .

new text begin (a) new text end A
student loan servicer must not misrepresent the availability of student loan forgiveness for
which the servicer has reason to know the borrower is eligible. This includes but is not
limited to student loan forgiveness programs specific to military borrowers, borrowers
working in public service, or borrowers with disabilities.

new text begin (b) A student loan servicer must not provide incorrect information related to forbearance.
If a student loan servicer suggests placing a borrower in forbearance in lieu of a repayment
program that would result in savings to the borrower and the borrower relies on this
information, the student loan servicer shall be subject to the penalties provided under section
58B.09.
new text end

Sec. 19.

Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Property. new text end

new text begin A student loan servicer must not obtain property by fraud or
misrepresentation.
new text end

Sec. 20.

Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Customer service. new text end

new text begin A student loan servicer must not allow a borrower to
remain on hold during an individual call for more than two hours unless the student loan
servicer returns the borrower's phone call within 24 hours of the two hours expiring. A
student loan servicer must not allow a call on hold to automatically lapse or end upon
reaching a duration of two hours to satisfy this requirement.
new text end

Sec. 21.

Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Abusive acts or practices. new text end

new text begin A student loan servicer must not engage in abusive
acts or practices when servicing a student loan in this state. An act or practice is abusive in
connection with the servicing of a student loan if that act or practice:
new text end

new text begin (1) materially interferes with the ability of a borrower to understand a term or condition
of a student loan; or
new text end

new text begin (2) takes unreasonable advantage of any of the following:
new text end

new text begin (i) a lack of understanding on the part of a borrower of the material risks, costs, or
conditions of the student loan;
new text end

new text begin (ii) the inability of a borrower to protect the interests of the borrower when selecting or
using a student loan or feature, term, or condition of a student loan; or
new text end

new text begin (iii) the reasonable reliance by the borrower on a student loan servicer to act in the
interests of the borrower.
new text end

Sec. 22.

Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Violations. new text end

new text begin A violation of this section is an unlawful practice under section
325D.44.
new text end

Sec. 23.

Minnesota Statutes 2022, section 58B.09, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Private right of action. new text end

new text begin (a) A borrower who suffers damage as a result of the
failure of a student loan servicer to comply with this chapter may bring an action on a
borrower's own behalf and on behalf of a similarly situated class of persons against that
student loan servicer to recover or obtain:
new text end

new text begin (1) actual damages, except that the total award of damages must be at least $500 per
plaintiff, per violation;
new text end

new text begin (2) an order enjoining the methods, acts, or practices;
new text end

new text begin (3) restitution of property;
new text end

new text begin (4) punitive damages;
new text end

new text begin (5) reasonable attorney fees; and
new text end

new text begin (6) any other relief that the court deems proper.
new text end

new text begin (b) In addition to any other remedies provided by this subdivision or otherwise provided
by law, if a student loan servicer is shown, by a preponderance of the evidence, to have
engaged in conduct that substantially interferes with a borrower's right to an alternative
payment arrangement; loan forgiveness, cancellation, or discharge; or any other financial
benefit established under the terms of a borrower's promissory note or under the Higher
Education Act of 1965, United States Code, title 20, section 1070a, et seq., a borrower is
entitled to damages of at least $1,500 per plaintiff, per violation.
new text end

new text begin (c) At least 45 days before bringing an action for damages or injunctive relief under this
chapter, a borrower must:
new text end

new text begin (1) provide written notice to the student loan servicer alleged to have violated this chapter
regarding the nature of the alleged violations; and
new text end

new text begin (2) demand that the student loan servicer correct and remedy the method, act, or practice
identified in the notice under clause (1).
new text end

new text begin (d) The notice required by this subdivision must be sent by certified or registered mail,
return receipt requested, to the student loan servicer's address on file with the Department
of Commerce or to the student loan servicer's principal place of business in Minnesota.
new text end

new text begin (e) An action for damages or injunctive relief brought by a borrower only on the
individual borrower's behalf must not be maintained under paragraph (a) upon a showing
by a student loan servicer that an appropriate correction and remedy is given, or is agreed
to be given within a reasonable time, to the borrower within 30 days after the notice is
received.
new text end

new text begin (f) An action for damages brought by a borrower on both the borrower's behalf and on
behalf of a similarly situated class of persons must not be maintained under paragraph (a)
upon a showing by a student loan servicer alleged to have employed or committed a method,
act, or practice declared unlawful if:
new text end

new text begin (1) all borrowers similarly situated have been identified or a reasonable effort to identify
other borrowers has been made;
new text end

new text begin (2) all borrowers identified have been notified that, upon the borrower's request, the
student loan servicer must make the appropriate correction and remedy;
new text end

new text begin (3) the correction and remedy requested by the borrower has been given or is given
within a reasonable amount of time; and
new text end

new text begin (4) the student loan servicer has ceased from engaging, or if immediate cessation is
impossible or unreasonably expensive under the circumstances, the student loan servicer
ceases to engage within a reasonable amount of time, in the method, act, or practice.
new text end

new text begin (g) An attempt to comply with a demand described in paragraph (c) by a student loan
servicer that receives the demand is construed as an offer to compromise and is inadmissible
as evidence under Minnesota Rules of Evidence, rule 408. An attempt to comply with a
demand is not an admission of engaging in an act or practice declared unlawful by paragraph
(a). Evidence of compliance or attempts to comply with this section may be introduced by
a defendant to establish good faith or to show compliance with paragraph (a).
new text end

new text begin (h) An award of damages must not be given in an action based on a method, act, or
practice in violation of paragraph (a) if the student loan servicer alleged to have employed
or committed that method, act, or practice:
new text end

new text begin (1) proves by a preponderance of the evidence that the violation was not intentional and
resulted from a bona fide error, notwithstanding the use of reasonable procedures adopted
to avoid that error; and
new text end

new text begin (2) makes an appropriate correction, repair, replacement, or other remedy under
paragraphs (e) and (f).
new text end

new text begin (i) The commissioner must administer and enforce this section and must adopt rules and
issue orders consistent with the authority under this section.
new text end

Sec. 24.

new text begin [65A.3025] CONDOMINIUM AND TOWNHOUSE POLICIES;
COORDINATION OF BENEFITS FOR LOSS ASSESSMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Association" has the meaning given in section 515B.1-103, clause (4).
new text end

new text begin (c) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
new text end

new text begin (d) "Assessable loss" means a covered loss under the terms of the policy applicable
under subdivision 2, paragraphs (a) and (b).
new text end

new text begin Subd. 2. new text end

new text begin Loss assessment. new text end

new text begin (a) If a loss assessment is charged by an association to an
individual unit owner the insurance policy in force at the time of the assessable loss must
pay the loss assessment, subject to the limits provided in the policy, notwithstanding any
policy provisions regarding when loss assessment coverage accrues, and subject to any
other terms, conditions, and exclusions in the policy, if the following conditions are met:
new text end

new text begin (1) the unit owner at the time of the assessable loss is the owner of the property listed
on the policy at the time the loss assessment is charged;
new text end

new text begin (2) if the insurance policy in force at the time of the assessable loss provides loss
assessment coverage; and
new text end

new text begin (3) a loss assessment and the event or occurrence which triggers a loss assessment shall
be considered a single loss for underwriting and rating purposes.
new text end

new text begin (b) If a loss assessment is charged by an association to an individual unit owner the
insurance policy in force at the time the loss assessment is charged must pay the assessment,
subject to the limits provided in the policy, notwithstanding any policy provisions regarding
when loss assessment coverage accrues, and subject to any other terms, conditions, and
exclusions in the policy, if the following conditions are met:
new text end

new text begin (1) the unit owner at the time of the loss assessment is charged is different than the unit
owner at the time of the assessable loss; and
new text end

new text begin (2) the insurance policy in force at the time the loss assessment is charged provides loss
assessment coverage.
new text end

new text begin (c) For a loss assessment under paragraph (b), an insurer may require evidence
documenting that the transfer of ownership occurred prior to the assessment before the
insurer affords coverage.
new text end

Sec. 25.

Minnesota Statutes 2023 Supplement, section 239.791, subdivision 8, is amended
to read:

Subd. 8.

Disclosure; reporting.

(a) A refinery or terminal, shall provide, at the time
gasoline is sold or transferred from the refinery or terminal, a bill of lading or shipping
manifest to the person who receives the gasoline. For oxygenated gasoline, the bill of lading
or shipping manifest must include the identity and the volume percentage or gallons of
oxygenate included in the gasoline, and it must state: "This fuel contains an oxygenate. Do
not blend this fuel with ethanol or with any other oxygenate." For nonoxygenated gasoline,
the bill or manifest must state: "This fuel is not oxygenated. It must not be sold at retail in
Minnesota." This subdivision does not apply to sales or transfers of gasoline between
refineries, between terminals, or between a refinery and a terminal.

(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
must state the volume percentage of biofuel blended into gasoline delivered through a meter
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14
deleted text begin and deleted text end new text begin , new text end 16 new text begin , and 17 new text end .

(c) On or before the 23rd day of each month, a person responsible for the product must
report to the department, in the form prescribed by the commissioner, the gross number of
gallons of intermediate blends sold at retail by the person during the preceding calendar
month. The report must identify the number of gallons by blend type. For purposes of this
subdivision, "intermediate blends" means blends of gasoline and biofuel in which the biofuel
content, exclusive of denaturants and other permitted components, is greater than ten percent
and no more than 50 percent by volume. This paragraph only applies to a person who is
responsible for selling intermediate blends at retail at more than ten locations. A person
responsible for the product at fewer than ten locations is not precluded from reporting the
gross number of intermediate blends if a report is available.

(d) All reports provided pursuant to paragraph (c) are nonpublic data, as defined in
section 13.02, subdivision 9.

Sec. 26.

Minnesota Statutes 2022, section 239.791, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Bulk delivery of premium grade gasoline; exemption. new text end

new text begin (a) A person
responsible for the product may offer for sale, sell, or deliver a bulk delivery of unleaded
premium grade gasoline, as defined in section 239.751, subdivision 4, that is not oxygenated
in accordance with subdivision 1 if the conditions in paragraphs (b) to (d) are met.
new text end

new text begin (b) Nonoxygenated gas is only for use in vehicles that qualify for an exemption under
subdivision 12, paragraph (a).
new text end

new text begin (c) No more than one bulk fuel storage tank on the premises may be used for storage of
the nonoxygenated gasoline.
new text end

new text begin (d) The bulk fuel delivery is 500 gallons or less.
new text end

Sec. 27.

Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

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

(b) "Essential consumer good or service" means a good or service that is vital and
necessary for the health, safety, and welfare of the public, including without limitation:
food; water; fuel; gasoline; shelter; construction materials; transportation; health care
services; pharmaceuticals; and medical, personal hygiene, sanitation, and cleaning supplies.

(c) new text begin "Restoration and mitigation services provider" means a person or business that
provides a service to prevent further damage to property following a fire, smoke, water, or
storm event. Services include but are not limited to boarding up property, water extraction,
drying, smoke or odor removal, cleaning, and personal property inventory, removal, and
storage.
new text end

new text begin (d) new text end "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
goods and services.

new text begin (e) "Tree trimmer" means a person registered under section 18G.07.
new text end

deleted text begin (d) deleted text end new text begin (f) new text end "Unconscionably excessive price" means a price that represents a gross disparity
compared to the seller's average price of an essential good or service, offered for sale or
sold in the usual course of business, in the 60-day period before an abnormal market
disruption is declared under subdivision 2. None of the following is an unconscionably
excessive price:

(1) a price that is substantially related to an increase in the cost of manufacturing,
obtaining, replacing, providing, or selling a good or service;

(2) a price that is no more than 25 percent above the seller's average price during the
60-day period before an abnormal market disruption is declared under subdivision 2;

(3) a price that is consistent with the fluctuations in applicable commodity markets or
seasonal fluctuations; or

(4) a contract price, or the results of a price formula, that was established before an
abnormal market disruption is declared under subdivision 2.

Sec. 28.

Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 5, is amended
to read:

Subd. 5.

Prices and rates.

Upon the occurrence of a weather event classified as a severe
thunderstorm pursuant to the criteria established by the National Oceanic and Atmospheric
Administration, a residential building contractor new text begin , tree trimmer, or restoration and mitigation
services provider new text end operating within the geographic region impacted by the weather event
and repairing damage caused by the weather event shall not:

(1) charge an unconscionably excessive price for labor in comparison to the market price
charged for comparable services in the geographic region impacted by the weather event;
or

(2) charge an insurance company a rate that exceeds what the residential building
contractor new text begin , tree trimmer, or restoration and mitigation services provider would new text end otherwise
deleted text begin charges members deleted text end new text begin charge a member new text end of the general public.

Sec. 29.

Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 6, is amended
to read:

Subd. 6.

Civil penalty.

A person who is found to have violated deleted text begin this section deleted text end new text begin subdivision
4 new text end is subject to a civil penalty of not more than $1,000 per sale or transaction, with a maximum
penalty of $25,000 per day. No other penalties may be imposed for the same conduct
regulated under deleted text begin this section deleted text end new text begin subdivision 4 new text end .

Sec. 30.

Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 7, is amended
to read:

Subd. 7.

Enforcement authority.

(a) The attorney general may investigate and bring
an action new text begin using the authority under section 8.31 new text end against a seller deleted text begin or deleted text end new text begin , new text end residential building
contractor new text begin , tree trimmer, or restoration and mitigation services provider new text end for an alleged
violation of this section.

(b) Nothing in this section creates a private cause of action in favor of a person injured
by a violation of this section.

Sec. 31.

Minnesota Statutes 2022, section 325F.03, is amended to read:

325F.03 FLAME RESISTANT PUBLIC ASSEMBLY TENTS.

No person, firm or corporation shall establish, maintain or operate any circus, side show,
carnival, tent show, theater, skating rink, dance hall, or a similar exhibition, production,
engagement or offering or other place of assemblage in or under which deleted text begin ten deleted text end new text begin 15 new text end or more
persons may gather for any lawful purpose in any tent, awning or other fabric enclosure
unless such tent, awning or other fabric enclosure, and all auxiliary tents, curtains, drops,
awnings and all decorative materials, are made from a nonflammable material or are treated
and maintained in a flame resistant condition. This section deleted text begin shall deleted text end new text begin does new text end not apply to tents new text begin
designed or manufactured for camping, backpacking, mountaineering, or children's play;
tents new text end used to conduct committal services on the grounds of a cemetery deleted text begin , deleted text end new text begin ; new text end nor to tents, awnings
or other fabric enclosures erected and used within a sound stage, or other similar structural
enclosure which is equipped with an overhead automatic sprinkler system.

Sec. 32.

Minnesota Statutes 2022, section 325F.04, is amended to read:

325F.04 FLAME RESISTANT TENTS deleted text begin AND SLEEPING BAGS deleted text end .

No person, firm new text begin , new text end or corporation may sell or offer for sale or manufacture for sale in this
state any tent new text begin subject to section 325F.03 new text end unless all fabrics or pliable materials in the tent
are durably flame resistant. deleted text begin No person, firm or corporation may sell or offer for sale or
manufacture for sale in this state any sleeping bag unless it meets the standards of the
commissioner of public safety for flame resistancy. deleted text end Tents deleted text begin and sleeping bags deleted text end new text begin subject to
section 325F.03 new text end shall be conspicuously labeled as being durably flame resistant.

Sec. 33.

Minnesota Statutes 2022, section 325F.05, is amended to read:

325F.05 RULES.

The commissioner of public safety shall act so as to have effective rules concerning
standards for deleted text begin nonflammable, flame resistant and deleted text end durably new text begin flame new text end resistant materials and for
labeling requirements deleted text begin by January 1, 1976 deleted text end new text begin under sections 325F.03 and 325F.04 new text end . In order to
comply with sections 325F.03 and 325F.04 all materials and labels must comply with the
rules adopted by the commissioner. The commissioner has general rulemaking power to
otherwise implement sections 325F.03 to 325F.07.

Sec. 34.

new text begin [325F.078] SALES OF AEROSOL DUSTERS CONTAINING 1,1-
DIFLUOROETHANE (DFE).
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Aerosol duster" means a product used to clean electronics and other items by means
of an aerosol sprayed from a pressurized container.
new text end

new text begin (c) "Behind-the-counter" means placement by a retailer of a product to ensure that
customers do not have direct access to the product before a sale is made, requiring the seller
to deliver the product directly to the buyer.
new text end

new text begin (d) "DFE" or "1,1-difluoroethane" means a chemical with a Chemicals Abstract Service
Registry Number of 75-37-6.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for retail sale. new text end

new text begin A retailer must only sell an aerosol duster that
contains DFE:
new text end

new text begin (1) from behind the counter;
new text end

new text begin (2) to a purchaser who presents valid evidence that the purchaser is at least 21 years of
age; and
new text end

new text begin (3) in a quantity that complies with the purchasing limit established in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Purchasing limit. new text end

new text begin (a) A retailer is prohibited from selling more than three cans
of an aerosol duster containing DFE to a customer in a single transaction.
new text end

new text begin (b) A retailer is prohibited from selling aerosol dusters containing DFE through same
day pick up services or same day delivery services.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin (a) Subdivisions 2 and 3 do not apply to a business purchasing
aerosol dusters online.
new text end

new text begin (b) Office wholesalers can sell more than three cans of aerosol dusters containing DFE
to a business they have a contract with.
new text end

new text begin Subd. 5. new text end

new text begin Labeling. new text end

new text begin (a) An aerosol duster manufactured after May 31, 2025, must not be
sold in this state unless the aerosol duster clearly warns against the dangers of intentionally
misusing duster aerosol products.
new text end

new text begin (b) The font size of this warning shall be the same or larger than other warning language.
The font color and background of the label must be in contrasting colors.
new text end

new text begin (c) The label on each can of aerosol duster containing DFE must contain the following:
new text end

new text begin (1) the words "DANGER: DEATH! Breathing this product to get high can kill you!";
and
new text end

new text begin (2) the poison control phone number, 1-800-222-1222.
new text end

new text begin (d) In order to comply with paragraph (a), a label may include, but is not limited to the
words:
new text end

new text begin (1) "Deliberate misuse by concentrating and inhaling the contents can be harmful or
fatal!"; and
new text end

new text begin (2) "Intentional misuse by deliberately concentrating and inhaling the vapors can be
harmful or fatal!".
new text end

new text begin (e) The safety symbols and color standards of the label described in this section must
conform with the ANSI Z535 safety signage standards guidelines established by the American
National Standards Institute.
new text end

new text begin Subd. 6. new text end

new text begin Violations. new text end

new text begin (a) A person who violates subdivision 2 or 3 is guilty of a
misdemeanor.
new text end

new text begin (b) It is an affirmative defense to a charge under subdivision 2, clause (2), if the defendant
proves by a preponderance of the evidence that the defendant reasonably and in good faith
relied on proof of age as described in section 340A.503, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, and applies to purchases
of aerosol dusters made on or after that date.
new text end

Sec. 35.

new text begin [325F.676] TICKET SALES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Entertainment" means all forms of entertainment, including but not limited to
theatrical or operatic performances, concerts, motion pictures, entertainment at fairgrounds,
amusement parks, athletic competitions and other sports, and all other forms of diversion,
recreation, or show.
new text end

new text begin (d) "Internet domain name" means a globally unique, hierarchical reference to an Internet
host or service, which is assigned through a centralized Internet naming authority and which
is composed of a series of character strings separated by periods with the rightmost string
specifying the top of the hierarchy.
new text end

new text begin (e) "Online ticket marketplace" means the administrator of a website or other electronic
service, including an agent, employee, or assignee of such administrator, that sells tickets
or maintains a platform to facilitate the sale of tickets.
new text end

new text begin (f) "Operator" means a person, including an agent, employee, or assignee of such person,
who:
new text end

new text begin (1) owns, operates, or controls a place of entertainment;
new text end

new text begin (2) produces entertainment; or
new text end

new text begin (3) sells a ticket to a place of entertainment for original sale.
new text end

new text begin (g) "Person" means a party, individual, partnership, association, corporation, or other
legal entity.
new text end

new text begin (h) "Place of entertainment" means an entertainment facility, including but not limited
to an amphitheater, theater, stadium, arena, racetrack, museum, amusement park, venue,
club, or other place where performances, concerts, exhibits, athletic games, contests, or
other forms of entertainment are held. For the purposes of this section, place of entertainment
does not include movie theaters.
new text end

new text begin (i) "Ticket reseller" means a person that offers or sells tickets for resale after the original
sale to an entertainment event located in this state and includes an operator to the extent
that the operator offers or sells tickets for resale. Sales by a ticket reseller includes sales by
any means, including but not limited to in-person, or by telephone, mail, delivery service,
facsimile, Internet, email, or other electronic means. A ticket reseller does not include a
person that purchases a ticket solely for their own use or the use of their invitees, employees,
or agents.
new text end

new text begin (j) "URL" means a uniform resource locator for a website on the Internet.
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) An operator, ticket reseller, or online ticket marketplace must,
at all times during the ticket listing and purchasing process, disclose in an easily readable
and conspicuous manner and in dollars:
new text end

new text begin (1) the total cost of the ticket, inclusive of all fees and surcharges that must be paid in
order to purchase the ticket;
new text end

new text begin (2) the portion of the ticket price that represents a service charge; and
new text end

new text begin (3) any other fee or surcharge to the purchaser.
new text end

new text begin (b) The disclosure of subtotals, fees, charges, and all other components of the total price
must not be false or misleading, and shall not be presented more prominently or in the same
or larger size than the total price. The disclosure of subtotals, fees, charges, and all other
components of the total price may be displayed in a way that allows the purchaser to hide
or minimize the itemized list. The price of a ticket must not increase with respect to a
particular person after the ticket is first displayed to such person, excluding reasonable fees
for the delivery of nonelectronic tickets based on the delivery method selected by the
purchaser and any additional purchases made by the purchaser, which must be disclosed
prior to accepting payment.
new text end

new text begin (c) A ticket reseller and online ticket marketplace must disclose in an easily readable
and conspicuous manner on its website or electronic service:
new text end

new text begin (1) that the website or electronic service is owned or operated by a ticket reseller or
online ticket marketplace and that the price of a resale ticket offered for sale may be higher
or lower than the original purchase price;
new text end

new text begin (2) that the purchaser is responsible for checking with the place of entertainment for
information on changes to the event or cancellations prior to the event's start time; and
new text end

new text begin (3) the refund policy of the ticket reseller or online ticket marketplace.
new text end

new text begin A ticket reseller or online ticket marketplace must require a purchaser to confirm having
read the disclosures required by this paragraph before completing a transaction.
new text end

new text begin (d) A ticket reseller or online ticket marketplace must provide proof of purchase to the
purchaser that must include all event and ticket information within 24 hours of the purchase,
including:
new text end

new text begin (1) that the purchaser is responsible for checking with the place of entertainment for
information on changes to the event or cancellations prior to the event's start time; and
new text end

new text begin (2) the refund policy of the ticket reseller or online ticket marketplace.
new text end

new text begin (e) An online ticket marketplace must not use any combination of text, images, trademark,
copyright, web designs, or Internet addresses that is identical or substantially similar to text,
images, trademark, copyright, web designs, or Internet addresses associated with a place of
entertainment without the written permission of the place of entertainment duly authorized
to provide such permission. This paragraph does not prohibit an online ticket marketplace
from using text containing the name of a place of entertainment or of an event in order to
describe the location of the event or the event itself. This paragraph does not prohibit an
online ticket marketplace from providing information or images identifying the specific
seat or area the purchaser will occupy in the place of entertainment.
new text end

new text begin (f) The obligations of paragraphs (a) to (d) do not apply to any person, unless the person
engaged in annual aggregate transactions that were equal to or greater than $5,000.
new text end

new text begin Subd. 3. new text end

new text begin Prohibitions. new text end

new text begin (a) A ticket reseller or online ticket marketplace must not:
new text end

new text begin (1) sell or offer to sell more than one copy of the same ticket to a place of entertainment;
new text end

new text begin (2) employ another person directly or indirectly to wait in line to purchase tickets for
the purpose of reselling the tickets if the practice is prohibited or if the place of entertainment
has posted a policy prohibiting the practice;
new text end

new text begin (3) sell or offer to sell a ticket without first informing the person of the location of the
place of entertainment and the ticket's assigned seat, including but not limited to the seat
number, row, and section number of the seat;
new text end

new text begin (4) sell or offer to sell a ticket for which there is no assigned seat without first informing
the person of the general admission area to which the ticket corresponds; or
new text end

new text begin (5) advertise, offer for sale, or contract for the sale of a ticket before the ticket has been
made available to the public, including via presale, without first obtaining permission from
the place of entertainment, and having actual or constructive possession of such ticket,
unless the ticket reseller owns the ticket pursuant to a season ticket package purchased by
the ticket reseller.
new text end

new text begin (b) A person must not use or cause to be used an Internet domain name or subdomain
thereof in an operator, ticket reseller, or online ticket marketplace website's URL that contains
any of the following, unless acting on behalf of the place of entertainment, event, or person
scheduled to perform or appear at the event:
new text end

new text begin (1) the name of a place of entertainment;
new text end

new text begin (2) the name of an event, including the name of a person scheduled to perform or appear
at the event; or
new text end

new text begin (3) a name substantially similar to those described in clause (1) or (2).
new text end

new text begin (c) A person must not:
new text end

new text begin (1) circumvent any portion of the process for purchasing a ticket on the Internet or for
admission to a place of entertainment, including but not limited to security or identity
validation measures or an access control system; or
new text end

new text begin (2) disguise the identity of a purchaser for the purpose of purchasing a number of tickets
for admission to a place of entertainment that exceeds the maximum number of tickets
allowed for purchase by a person.
new text end

new text begin (d) A person must not sell a ticket obtained in violation of paragraph (c) if the person:
new text end

new text begin (1) participated in or had the ability to control the conduct committed in violation of
paragraph (c); or
new text end

new text begin (2) knew that the ticket was acquired in violation of paragraph (c).
new text end

new text begin (e) An operator, online ticket marketplace, or ticket reseller must not sell a ticket unless:
new text end

new text begin (1) the ticket is in the possession or constructive possession of the operator, online ticket
marketplace, or ticket reseller; or
new text end

new text begin (2) the operator, online ticket marketplace, or ticket reseller has a written contract with
the place of entertainment to obtain the ticket.
new text end

new text begin (f) Pursuant to United States Code, title 15, section 45c, circumvention of a security
measure, access control system, or other technological control measure used by an online
ticket marketplace to enforce posted event ticket purchasing limits or to maintain the integrity
of posted online ticket purchasing order rules is prohibited.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner data requests; data practices. new text end

new text begin (a) Upon request by the
commissioner, an online ticket marketplace must disclose to the commissioner information
about technology and methods used in an alleged violation of subdivision 3, paragraph (f).
Data collected or maintained by the commissioner under this subdivision are civil
investigative data under section 13.39, and the commissioner may share with the attorney
general any not public data, as defined in section 13.02, subdivision 8a, received under this
subdivision.
new text end

new text begin (b) The commissioner may enforce this section under section 45.027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, and applies to tickets
sold on or after that date.
new text end

Sec. 36.

new text begin [325F.782] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of sections 325F.782 to 325F.7822, the following
terms have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Minor. new text end

new text begin "Minor" means an individual who is younger than 21 years of age.
new text end

new text begin Subd. 3. new text end

new text begin Vapor product. new text end

new text begin "Vapor product" means a noncombustible product that employs
a heating element, power source, electronic circuit, or other electronic, chemical, or
mechanical means, regardless of shape or size, that can be used to produce vapor from
nicotine or any other substance, and the use or inhalation of which simulates smoking. Vapor
product includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic
pipe, or similar product or device. Vapor product also includes a vapor cartridge or other
container of nicotine or other substance in a solution or other form that is intended to be
used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe,
or similar product or device.
new text end

Sec. 37.

new text begin [325F.7821] PROHIBITION ON DECEPTIVE VAPOR PRODUCTS.
new text end

new text begin A person or entity must not market, promote, label, brand, advertise, distribute, offer
for sale, or sell a vapor product by:
new text end

new text begin (1) imitating a product that is not a vapor product, including but not limited to:
new text end

new text begin (i) a food or brand of food commonly marketed to minors, including but not limited to
candy, desserts, and beverages;
new text end

new text begin (ii) school supplies commonly used by minors, including but not limited to erasers,
highlighters, pens, and pencils; and
new text end

new text begin (iii) a product based on or depicting a character, personality, or symbol known to appeal
to minors, including but not limited to a celebrity; a character in a comic book, movie,
television show, or video game; and a mythical creature;
new text end

new text begin (2) attempting to conceal the nature of the vapor product from parents, teachers, or other
adults; or
new text end

new text begin (3) using terms for, describing, or depicting any product described in clause (1).
new text end

Sec. 38.

new text begin [325F.812] CELLULAR TELEPHONE CASES.
new text end

new text begin Subdivision 1. new text end

new text begin Certain cellular telephone cases; prohibition. new text end

new text begin A person is prohibited
from purchasing, possessing, importing, manufacturing, selling, holding for sale, or
distributing a cellular telephone case, stand, or cover that is a facsimile of or reasonably
appears to be a firearm, including but not limited to a pistol or revolver.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin This section may be enforced by the attorney general under
section 8.31, but a court may not impose a civil penalty of more than $500 for a violation
of this section.
new text end

Sec. 39.

Minnesota Statutes 2022, section 325G.24, is amended to read:

325G.24 RIGHT OF CANCELLATION.

new text begin Subdivision 1. new text end

new text begin Right of cancellation. new text end

new text begin (a) new text end Any person who has elected to become a
member of a club may new text begin unilaterally new text end cancel such membership new text begin , in the person's exclusive
discretion, new text end by giving deleted text begin written deleted text end notice of cancellation new text begin at new text end any time before midnight of the third
business day following the date on which membership was attained. deleted text begin Notice of cancellation
may be given personally or by mail.
deleted text end

new text begin (b) new text end If given by mail, the notice is effective upon deposit in a mailbox, properly addressed
and postage prepaid. deleted text begin Notice of cancellation need not take a particular form and is sufficient
if it indicates, by any form of written expression, the intention of the member not to be
bound by the contract.
deleted text end

new text begin (c) new text end Cancellation new text begin under this subdivision new text end shall be without liability on the part of the member
and the member shall be entitled to a refund, within ten days after notice of cancellation is
given, of the entire consideration paid for the contract. deleted text begin Rights of cancellation may not be
waived or otherwise surrendered.
deleted text end

new text begin Subd. 2. new text end

new text begin Right of member unilateral termination. new text end

new text begin (a) Any person who has elected to
become a member of a club may unilaterally terminate such membership, in the person's
exclusive discretion, by giving notice of termination at any time.
new text end

new text begin (b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
and postage prepaid.
new text end

new text begin (c) A club must not impose a termination fee or any other liability on the member for
termination under this subdivision.
new text end

new text begin (d) Termination under this subdivision is effective at the end of the membership term
in which the member provides the notice of termination. If membership is at-will without
a defined membership term, then termination under this subdivision is effective immediately,
unless the member indicates a future effective date of termination, in which event the date
indicated by the member is the effective date of termination.
new text end

new text begin (e) If a member provides notice of termination at any time before midnight of the third
business day following the date on which membership was attained, the club must treat the
notice as a notice of cancellation under subdivision 1, unless the member specifically
provides for a future termination effective date.
new text end

new text begin Subd. 3. new text end

new text begin Notice requirements. new text end

new text begin (a) A club must accept a notice of cancellation or notice
of termination that has been given:
new text end

new text begin (1) verbally, including but not limited to personally or over the telephone to customer
or account service members;
new text end

new text begin (2) in writing, including but not limited to via mail, email, or an online message through
the club's website directed to customer or account service members;
new text end

new text begin (3) through a termination election as described in section 325G.60; or
new text end

new text begin (4) in any other manner or medium by which the member initially accepted membership
to the club and that is no more burdensome to the member than was the initial acceptance.
new text end

new text begin (b) The process to cancel must be stated clearly and be easily accessible and completed
with ease.
new text end

new text begin Subd. 4. new text end

new text begin No waiver. new text end

new text begin A right of cancellation or right of termination under this section
may not be waived or otherwise surrendered.
new text end

Sec. 40.

Minnesota Statutes 2022, section 325G.25, subdivision 1, is amended to read:

Subdivision 1.

Form and content.

A copy of every contract shall be delivered to the
member at the time the contract is signed. Every contract must be in writing, must be signed
by the member, must designate the date on which the member signed the contract and must
state, clearly and conspicuously in boldface type of a minimum size of 14 points, the
following:

"MEMBERS' RIGHT TO CANCEL"

"If you wish to cancel this contract, you may cancel new text begin in-person, over the phone, new text end by
delivering or mailing a written notice to the club new text begin , via email or an online message through
the club's website, through the "termination election" provided on the club's website (if
applicable) and as described in Minnesota Statutes, section 325G.60, or in any other manner
or medium by which you initially accepted membership to the club new text end . The notice must deleted text begin say
that you do not wish to be bound by the contract and must be delivered or mailed deleted text end new text begin be provided
to the club new text end before midnight of the third business day after you sign this contract. deleted text begin The notice
must be delivered or mailed to: (Insert name and mailing address of club). deleted text end If you cancel,
the club will return, within ten days of the date on which you give notice of cancellation,
any payments you have made."

new text begin "MEMBERS' RIGHT TO UNILATERAL TERMINATION"
new text end

new text begin "You may unilaterally terminate this contract in your exclusive discretion at any time.
If you terminate, your membership will terminate at the end of the membership term in
which you provided the club with notice of termination. If your membership is at-will
without a defined membership term, then your membership will terminate immediately,
unless you indicate a future effective date of termination. If you wish to terminate this
contract, you may terminate in-person, over the phone, by delivering or mailing a written
notice to the club, via email or an online message through the club's website, through the
"termination election" provided on the club's website (if applicable) and as described in
Minnesota Statutes, section 325G.60, or in any other manner or medium by which you
initially accepted membership to the club. The club may not impose a termination fee or
any other liability on you for termination."
new text end

new text begin "NOTICE INFORMATION"
new text end

new text begin "If you wish to provide notice of cancellation or notice of termination to the club:
new text end

new text begin In-person or by mail, the applicable address is: [Insert name and mailing address of
club];
new text end

new text begin Over the phone, the applicable phone number is: [Insert phone number of club];
new text end

new text begin Via email, the applicable email address is: [Insert email address of club];
new text end

new text begin On the club's website, the applicable website address is: [Insert address, if applicable]."
new text end

Sec. 41.

new text begin [325G.38] HANDHELD ELECTRONIC DEVICES; DISCLOSURES.
new text end

new text begin If a retail establishment offers consumers the use of handheld electronic devices that
require payment for games or other entertainment, the handheld electronic device must
display a disclosure. The disclosure must be provided to the consumer before a game or
entertainment is purchased and must:
new text end

new text begin (1) require the user to affirm that the user is 18 years of age or older; and
new text end

new text begin (2) include, in at least ten-point font and larger than all other type viewable on the screen
at that time, the payment amount required.
new text end

Sec. 42.

new text begin [325G.56] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of sections 325G.56 to 325G.62, the terms defined
in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Automatic renewal. new text end

new text begin "Automatic renewal" means a plan or arrangement in
which a subscription or purchasing agreement is automatically renewed at the end of a
definite term for a subsequent term.
new text end

new text begin Subd. 3. new text end

new text begin Clear and conspicuous. new text end

new text begin "Clear and conspicuous" means in larger type than
the surrounding text, or in contrasting type, font, or color to the surrounding text of the same
size, or set off from the surrounding text of the same size by symbols or other marks, in a
manner that calls attention to the language. In the case of an audio disclosure, "clear and
conspicuous" means in a volume and cadence sufficient to be readily audible and
understandable.
new text end

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin "Consumer" means any individual who seeks or acquires, by
purchase or lease, any goods, services, money, or credit for personal, family, or household
purposes. Consumer includes but is not limited to a member as defined in section 325G.23,
unless the context clearly indicates otherwise.
new text end

new text begin Subd. 5. new text end

new text begin Continuous service. new text end

new text begin "Continuous service" means a plan or arrangement in
which a subscription or purchasing agreement continues until the consumer terminates the
agreement.
new text end

new text begin Subd. 6. new text end

new text begin Indefinite subscription agreement. new text end

new text begin "Indefinite subscription agreement" means
a subscription or purchasing agreement:
new text end

new text begin (1) between a seller and a consumer in Minnesota; and
new text end

new text begin (2) subject to automatic renewal or continuous service.
new text end

new text begin Indefinite subscription agreements include but are not limited to contracts, as defined in
section 325G.23, subject to automatic renewal or continuous service.
new text end

new text begin Subd. 7. new text end

new text begin Offer terms. new text end

new text begin "Offer terms" means the following disclosures:
new text end

new text begin (1) that the indefinite subscription agreement will continue until the consumer terminates
the agreement;
new text end

new text begin (2) the description of the cancellation policy that applies to the indefinite subscription
agreement;
new text end

new text begin (3) the recurring charges that will be charged to the consumer's credit or debit card or
payment account with a third party as part of the plan or arrangement and that the amount
of the charge may change, if that is the case, and the amount to which the charge will change,
if known;
new text end

new text begin (4) the length of the automatic renewal term or that the service is continuous, unless the
length of the term is definite and chosen by the consumer; and
new text end

new text begin (5) the minimum purchase obligation, if any.
new text end

new text begin Subd. 8. new text end

new text begin Seller. new text end

new text begin "Seller" means a seller, lessor, licensor, or professional who advertises,
solicits, or engages in consumer transactions, or a manufacturer, distributor, or licensor who
advertises and sells, leases, or licenses goods or services to be resold, leased, or sublicensed
by other persons in consumer transactions. Seller includes but is not limited to a club as
defined in section 325G.23, unless the context clearly indicates otherwise.
new text end

Sec. 43.

new text begin [325G.57] REQUIREMENTS FOR AUTOMATIC RENEWAL OR
CONTINUOUS SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Notices upon offer. new text end

new text begin A seller making an offer for an indefinite subscription
agreement must, before the consumer accepts the offer, present the offer terms in a clear
and conspicuous manner to the consumer and in visual proximity, or in the case of an offer
conveyed by voice, in temporal proximity, to the offer's proposal.
new text end

new text begin Subd. 2. new text end

new text begin Confirmation upon consumer consent. new text end

new text begin A seller making an offer for an
indefinite subscription agreement must, in a timely manner after the consumer accepts the
offer, provide the consumer with confirmation of the consumer's acceptance of the offer,
in a manner that is capable of being retained by the consumer, that includes the following:
new text end

new text begin (1) the offer terms;
new text end

new text begin (2) if the offer includes a free trial, information on how to cancel the free trial before
the consumer pays or becomes obligated to pay for any goods or services in connection
with the free trial; and
new text end

new text begin (3) options for termination of the indefinite subscription agreement, which options must
be easy to use, cost-effective, and timely for all consumers:
new text end

new text begin (i) if a seller makes offers for an indefinite subscription agreement through an online
website, a termination election as set forth in section 325G.60; and
new text end

new text begin (ii) if a consumer enters into the indefinite subscription agreement through any means
other than a toll-free telephone number, an email address, or a postal address, then an option
substantially similar to, as easy to use, and as accessible as the initial means of consumer
acceptance of the agreement.
new text end

new text begin A communication of the required information through email is sufficient to meet the
requirements of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Material changes. new text end

new text begin Upon a material change in the terms of the indefinite
subscription agreement, the seller must provide to the consumer in a timely manner, and in
any case prior to the implementation of the material change, a clear and conspicuous notice
of the material change and provide information regarding how to terminate the agreement
in a manner that is capable of being retained by the consumer. A material change in the
terms of an indefinite subscription agreement in violation of this subdivision is void and
unenforceable.
new text end

new text begin Subd. 4. new text end

new text begin Free trials. new text end

new text begin A seller making an offer for an indefinite subscription agreement
that includes a free trial lasting more than 30 days must, no fewer than five days and no
more than 30 days before the end of any such free trial, notify the consumer of the consumer's
option to cancel the free trial before the end of the trial period to avoid an obligation to pay
for the goods or services.
new text end

new text begin Subd. 5. new text end

new text begin Periodic notice of continuous service. new text end

new text begin (a) If an indefinite subscription
agreement is subject to continuous service, the seller must give the consumer written notice
of the continuous service at least once per calendar year via mail or email.
new text end

new text begin (b) The notice required under this subdivision must include the terms of the service and
how to terminate or manage the service.
new text end

Sec. 44.

new text begin [325G.58] PROHIBITED CONDUCT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; agreement. new text end

new text begin For purposes of this section, "agreement" means
an indefinite subscription agreement, as defined in section 325G.56, and a contract, as
defined in section 325G.23.
new text end

new text begin Subd. 2. new text end

new text begin Charges prior to effective date. new text end

new text begin A seller must not charge the consumer's credit
or debit card or the consumer's account with a third party in connection with an agreement
before the agreement has been duly authorized by the seller and consumer and made effective.
new text end

new text begin Subd. 3. new text end

new text begin Right of first refusal. new text end

new text begin An agreement must not require the consumer to permit
the seller to match any offer the consumer has received. A provision in an agreement that
violates this subdivision is void and unenforceable.
new text end

new text begin Subd. 4. new text end

new text begin No abusive tactics or offers upon notice. new text end

new text begin (a) A seller that has received a notice
of cancellation or notice of termination of an agreement from a consumer cannot:
new text end

new text begin (1) make any misrepresentation or undertake any unfair or abusive tactic to delay,
unreasonably delay, or avoid the cancellation or termination of the agreement; or
new text end

new text begin (2) make or provide additional benefits, contract modifications, gifts, or similar offers
to the consumer until the seller has obtained permission from the consumer, granted by the
consumer after notice of cancellation or termination was given to the seller, for the seller
to engage in any such activity.
new text end

new text begin (b) A seller can only seek a consumer's permission under this paragraph once per
cancellation or termination attempt. A consumer's grant of permission under this paragraph
is limited to the immediate cancellation or termination attempt and does not apply to
subsequent attempts.
new text end

new text begin Subd. 5. new text end

new text begin Exceptions. new text end

new text begin This section does not prohibit a seller from:
new text end

new text begin (1) asking the consumer the reasons for cancellation or termination, provided that a
consumer is not required to answer as a condition of cancellation or termination;
new text end

new text begin (2) informing the consumer that there may be consequences of cancelling or terminating
the subscription; or
new text end

new text begin (3) verifying the identity of the consumer.
new text end

Sec. 45.

new text begin [325G.59] CONSUMER'S RIGHT TO TERMINATE.
new text end

new text begin Subdivision 1. new text end

new text begin Termination of agreement subject to automatic renewal. new text end

new text begin A consumer
may terminate an indefinite subscription agreement subject to automatic renewal at any
time by following the procedure set forth in the confirmation described in section 325G.57,
subdivision 2. A termination under this subdivision is effective at the end of the term in
which notice of termination is provided by the consumer, unless the consumer specifies a
termination date occurring at the end of a subsequent term, in which event the termination
is effective as of the date specified by the consumer, if the option is available.
new text end

new text begin Subd. 2. new text end

new text begin Termination of agreement subject to continuous service. new text end

new text begin (a) A consumer
may terminate an indefinite subscription agreement subject to continuous service at any
time by following the procedure set forth in the confirmation described in section 325G.57,
subdivision 2. A termination under this subdivision must take effect no later than 31 days
from the date of a verified consumer's notice of termination unless the consumer specifies
a future termination date, in which event the termination is effective as of such date.
new text end

new text begin (b) This subdivision does not require a seller to provide an option to set a future
termination date.
new text end

new text begin Subd. 3. new text end

new text begin Termination in absence of confirmation or notice. new text end

new text begin If the seller fails to provide
either the confirmation required under section 325G.57, subdivision 2, or a notice required
by section 325G.57, subdivision 5, the consumer may terminate the indefinite subscription
agreement by any reasonable means at any time, including but not limited to by mail, email,
telephone, an online option, a termination election under section 325G.60, or the means by
which the consumer entered into the agreement, at no cost to the consumer.
new text end

Sec. 46.

new text begin [325G.60] TERMINATION ELECTION REQUIREMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; agreement. new text end

new text begin For purposes of this section, "agreement" means
an indefinite subscription agreement, as defined in section 325G.56, and a contract, as
defined in section 325G.23.
new text end

new text begin Subd. 2. new text end

new text begin Termination election required. new text end

new text begin (a) If a seller has a website with profile or
subscription management capabilities, then such website must include a termination election
on the website. The termination election must be clear and conspicuous on the website and
must use plain language to convey that any consumer may use the termination election to
terminate the agreement at any time. The termination election must only require a consumer
to input information that is necessary to process the termination. The termination election
must include a checkbox, submission button, or similarly common and simple mechanism
for the member to indicate a desire to terminate the agreement.
new text end

new text begin (b) For purposes of this section, "termination election" means a simple and easily
accessible means for a consumer to quickly provide notice of termination, and that does not
include undue complexity, confusion, or misrepresentation by the seller.
new text end

Sec. 47.

new text begin [325G.61] UNCONDITIONAL GIFTS.
new text end

new text begin Any good, including but not limited to any ware, merchandise, or product, is an
unconditional gift to the consumer if a seller sends the good under an indefinite subscription
agreement without first obtaining the consumer's affirmative consent to the agreement in
accordance with section 325G.57. The consumer may use or dispose of the good in any
manner without any obligation to the seller, including but not limited to any obligation
relating to shipping of the good.
new text end

Sec. 48.

new text begin [325G.62] EXEMPTION.
new text end

new text begin Sections 325G.56 to 325G.61 do not apply to:
new text end

new text begin (1) contracts governed by another state or federal statute or regulation specifically
intended to regulate automatic renewal or continuous service;
new text end

new text begin (2) any licensee as defined in section 60A.985, subdivision 8, and any affiliate of such
a licensee as defined in section 60D.15, subdivision 2;
new text end

new text begin (3) an individual or business licensed by the Department of Labor and Industry as a
technology system contractor or power limited technician as defined in section 326B.31;
new text end

new text begin (4) any service provided by a business or its affiliate where either the business or its
affiliate is licensed or regulated by the Public Utilities Commission, the Federal
Communications Commission, or the Federal Energy Regulatory Commission; or
new text end

new text begin (5) any person or entity registered or licensed with the Financial Industry Regulatory
Authority, the Securities and Exchange Commission, or under the Minnesota Securities
Act.
new text end

Sec. 49.

new text begin [332.3352] WAIVER OF LICENSING AND REGISTRATION.
new text end

new text begin The commissioner of commerce may, by order, waive the licensing and registration
requirements of this chapter for a nonresident collection agency and its affiliated collectors
if: (1) a written reciprocal licensing agreement is in effect between the commissioner and
the licensing officials of the collection agency's home state; and (2) the collection agency
is licensed in good standing in that state.
new text end

Sec. 50.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 2, is amended
to read:

Subd. 2.

Coerced debt.

(a) "Coerced debt" means all or a portion of debt in a debtor's
name that has been incurred as a result of:

(1) the use of the debtor's personal information without the debtor's knowledge,
authorization, or consent;

(2) the use or threat of force, intimidation, undue influence, deleted text begin harassment, deleted text end fraud, deception,
coercion, or other similar means against the debtor; or

(3) economic abuse perpetrated against the debtor.

(b) Coerced debt does not include secured debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 51.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 4, is amended
to read:

Subd. 4.

Debtor.

"Debtor" means a person who (1) is a victim of domestic abuse,
deleted text begin harassment deleted text end new text begin economic abuse new text end , or sex or labor trafficking, and (2) owes coerced debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 52.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 5, is amended
to read:

Subd. 5.

Documentation.

"Documentation" means deleted text begin a writing that identifies a debt or a
portion of a debt as coerced debt, describes the circumstances under which the coerced debt
was incurred, and takes the form of deleted text end :

(1) a police report;

(2) a Federal Trade Commission identity theft report;

(3) an order in a dissolution proceeding under chapter 518 that declares that one or more
debts are coerced; or

(4) a sworn written certification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 53.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 7, is amended
to read:

Subd. 7.

Economic abuse.

"Economic abuse" means behavior in the context of a domestic
relationship that controls, restrains, restricts, impairs, or interferes with the ability of a deleted text begin victim
of domestic abuse, harassment, or sex or labor trafficking deleted text end new text begin debtor new text end to acquire, use, or maintain
economic resources, including but not limited to:

(1) withholding or restricting access to, or the acquisition of, money, assets, credit, or
financial information;

(2) interfering with the victim's ability to work and earn wages; or

(3) exerting undue influence over a person's financial and economic behavior or decisions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 54.

Minnesota Statutes 2023 Supplement, section 332.72, is amended to read:

332.72 COERCED DEBT PROHIBITED.

new text begin (a) new text end A person is prohibited from causing another person to incur coerced debt.

new text begin (b) A person who causes another person to incur a coerced debt in violation of this
section is civilly liable to the creditor for the amount of the debt, or portion thereof,
determined by a court to be coerced debt, plus the creditor's reasonable attorney fees and
costs, provided the creditor follows the procedures under section 332.74, subdivision 3,
paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 55.

Minnesota Statutes 2023 Supplement, section 332.73, subdivision 1, is amended
to read:

Subdivision 1.

Notification.

(a) Before taking an affirmative action under section 332.74,
a debtor must, by certified mail, notify a creditor that the debt or a portion of a debt on
which the creditor demands payment is coerced debt and request that the creditor cease all
collection activity on the coerced debt. The notification and request must be in writing and
include documentation. new text begin If not already included in documentation, the notification must
include a signed statement that includes:
new text end

new text begin (1) an assertion that the debtor is a victim of domestic abuse, economic abuse, or sex or
labor trafficking;
new text end

new text begin (2) a recitation of the facts supporting the claim that the debt is coerced; and
new text end

new text begin (3) if only a portion of the debt is claimed to be coerced debt, an itemization of the
portion of the debt that is claimed to be coerced debt.
new text end

new text begin (b) new text end The creditor, within 30 days of the date the notification and request is received, must
notify the debtor in writing of the creditor's decision to either immediately cease all collection
activity or continue to pursue collection. new text begin If a creditor ceases collection but subsequently
decides to resume collection activity, the creditor must notify the debtor ten days prior to
the date the collection activity resumes.
new text end

deleted text begin (b) If a creditor ceases collection but subsequently decides to resume collection activity,
the creditor must notify the debtor ten days prior to the date the collection activity resumes.
deleted text end

(c) A debtor must not proceed with an action under section 332.74 until the 30-day
period provided under paragraph (a) has expired.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 56.

Minnesota Statutes 2023 Supplement, section 332.74, subdivision 3, is amended
to read:

Subd. 3.

Relief.

(a) If a debtor shows by a preponderance of the evidence that the debtor
has been aggrieved by a violation of section 332.72 and the debtor has incurred coerced
debt, the debtor is entitled to one or more of the following:

(1) a declaratory judgment that the debt or portion of a debt is coerced debt;

(2) an injunction prohibiting the creditor from (i) holding or attempting to hold the debtor
liable for the debt or portion of a debt, or (ii) enforcing a judgment related to the coerced
debt; and

(3) an order dismissing any cause of action brought by the creditor to enforce or collect
the coerced debt from the debtor or, if only a portion of the debt is established as coerced
debt, an order directing that the judgment, if any, in the action be amended to reflect only
the portion of the debt that is not coerced debt.

(b) If the court orders relief for the debtor under paragraph (a), the court, after the
creditor's motion has been new text begin personally new text end served new text begin on the person who violated section 332.72, or
if personal service cannot be made, after service new text end by United States mail to the last known
address of the person deleted text begin who violated section 332.72 deleted text end new text begin and one-week published notice under
section 645.11 new text end , deleted text begin shall deleted text end new text begin must new text end issue a judgment in favor of the creditor against the person in
the amount of the debt or a portion thereof.

(c) This subdivision applies regardless of the judicial district in which the creditor's
action or the debtor's petition was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 57.

Minnesota Statutes 2023 Supplement, section 332.74, subdivision 5, is amended
to read:

Subd. 5.

Burden.

In any affirmative action taken under subdivision 1 or any affirmative
defense asserted in subdivision 4, the debtor bears the burden to show by a preponderance
of the evidence that the debtor incurred coerced debt. There is a presumption that the debtor
has incurred coerced debt if the person alleged to have caused the debtor to incur the coerced
debt has been deleted text begin criminally deleted text end convicted deleted text begin , entered a guilty plea, or entered an Alford plea under deleted text end
new text begin of or received a stay of adjudication for a violation of new text end section 609.27, 609.282, 609.322, or
609.527.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 58.

new text begin [513.80] RESIDENTIAL REAL ESTATE SERVICE AGREEMENTS;
UNFAIR SERVICE AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "County recorder" has the meaning given in section 13.045, subdivision 1.
new text end

new text begin (c) "Person" means natural persons, corporations both foreign and domestic, trusts,
partnerships both limited and general, incorporated or unincorporated associations,
companies, business entities, and any other legal entity or any other group associated in fact
although not a legal entity or any agent, assignee, heir, employee, representative, or servant
thereof.
new text end

new text begin (d) "Record" or "recording" means placement of a document or instrument in the official
county public land records.
new text end

new text begin (e) "Residential real property" means real property that is located in Minnesota occupied,
or intended to be occupied, by one to four families as their residence.
new text end

new text begin (f) "Service agreement" means a contract under which a person agrees to provide real
estate broker services as defined in section 82.55, subdivision 19, in connection with the
purchase or sale of residential real property.
new text end

new text begin (g) "Service provider" means an individual or entity that provides services to a person
pursuant to a service agreement.
new text end

new text begin Subd. 2. new text end

new text begin Unfair service agreements; prohibition. new text end

new text begin (a) A service agreement subject to
this section is unfair and prohibited if any part of the agreement provides an exclusive right
to a service provider for a term in excess of one year after the time the service agreement
is entered into and:
new text end

new text begin (1) purports to run with the land or to be binding on future owners of interests in the real
property;
new text end

new text begin (2) allows for assignment of the right to provide service without notice to and consent
of the residential real property's owner, including a contract for deed vendee;
new text end

new text begin (3) is recorded or purports to create a lien, encumbrance, or other real property security
interest; or
new text end

new text begin (4) contains a provision that purports to automatically renew the agreement upon its
expiration.
new text end

new text begin (b) The following are not unfair service agreements under this section:
new text end

new text begin (1) a home warranty or similar product that covers the cost of maintaining a major home
system or appliance for a fixed period;
new text end

new text begin (2) an insurance contract;
new text end

new text begin (3) a mortgage loan or a commitment to make or receive a mortgage loan;
new text end

new text begin (4) an option or right of refusal to purchase a residential real property;
new text end

new text begin (5) a declaration of any covenants, conditions, or restrictions created in the formation
of a homeowners association, a group of condominium owners, or other common interest
community or an amendment to the covenants, conditions, or restrictions;
new text end

new text begin (6) a maintenance or service agreement entered by a homeowners association in a
common interest community;
new text end

new text begin (7) a security agreement governed by chapter 336 that relates to the sale or rental of
personal property or fixtures; or
new text end

new text begin (8) a contract with a gas, water, sewer, electric, telephone, cable, or other utility service
provider.
new text end

new text begin (c) This section does not impair any lien right granted under Minnesota law or that is
judicially imposed.
new text end

new text begin Subd. 3. new text end

new text begin Recording prohibited. new text end

new text begin (a) A person is prohibited from:
new text end

new text begin (1) presenting or sending an unfair service agreement or notice or memorandum of an
unfair service agreement to any county recorder to record; or
new text end

new text begin (2) causing an unfair service agreement or notice or memorandum of an unfair service
agreement to be recorded by a county recorder.
new text end

new text begin (b) If a county recorder records an unfair service agreement, the county recorder does
not incur liability.
new text end

new text begin (c) If an unfair service agreement is recorded, the recording does not create a lien or
provide constructive notice to any third party, bona fide purchaser, or creditor.
new text end

new text begin Subd. 4. new text end

new text begin Unfair service agreements unenforceable. new text end

new text begin A service agreement that is unfair
under this section is unenforceable and does not create a contractual obligation or relationship.
Any waiver of a consumer right, including a right to trial by jury, in an unfair service
agreement is void.
new text end

new text begin Subd. 5. new text end

new text begin Unfair service agreements; solicitation. new text end

new text begin Encouraging any consumer to enter
into an unfair service agreement by any service provider constitutes:
new text end

new text begin (1) an unfair method of competition; and
new text end

new text begin (2) an unfair or deceptive act or practice under section 82.81, subdivision 12, paragraph
(c), and section 325F.69.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement authority. new text end

new text begin (a) This section may be enforced by the attorney
general under section 8.31, except that any private cause of action brought under subdivision
7 is subject to the limitation under subdivision 7, paragraph (d).
new text end

new text begin (b) The commissioner of commerce may enforce this section with respect to a service
provider's real estate license.
new text end

new text begin Subd. 7. new text end

new text begin Remedies. new text end

new text begin (a) A consumer that is party to an unfair service agreement related
to residential real property or a person with an interest in the property that is the subject of
that agreement may bring an action under section 8.31 or 325F.70 in district court in the
county where the property is located.
new text end

new text begin (b) If an unfair service agreement or a notice or memorandum of an unfair service
agreement is recorded against any residential real property, any judgment obtained under
this section, after being certified by the clerk having custody of the unfair service agreement
or notice or memorandum of the unfair service agreement, may be recorded and indexed
against the real property encumbered or clouded by the unfair service agreement.
new text end

new text begin (c) The remedies provided under this section are not exclusive and do not reduce any
other rights or remedies a party may have in equity or in law.
new text end

new text begin (d) No private action may be brought under this section more than six years after the
date the term printed in the unfair service agreement expires.
new text end

Sec. 59. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 325G.25, subdivision 1a; and 332.3351, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 332.71, subdivision 8, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective January 1, 2025.
new text end

Sec. 60. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 12 to 25 are effective August 1, 2024.
new text end

new text begin (b) Sections 42, 43, and 45 to 52 are effective August 1, 2025, and apply to contracts
entered into, modified, or renewed on or after that date.
new text end

ARTICLE 4

LIQUOR

Section 1.

Minnesota Statutes 2022, section 340A.101, subdivision 13, is amended to
read:

Subd. 13.

Hotel.

"Hotel" is an establishment where food and lodging are regularly
furnished to transients and which has:

(1) a dining room serving the general public at tables and having facilities for seating
at least 30 guests at one time; deleted text begin and deleted text end new text begin or
new text end

(2) guest rooms in the following minimum numbers: in first class cities, 50; in second
class cities, deleted text begin 25 deleted text end new text begin 15 new text end ; in all other cities and unincorporated areas, 10.

Sec. 2.

Minnesota Statutes 2022, section 340A.404, subdivision 2, is amended to read:

Subd. 2.

Special provision; city of Minneapolis.

(a) The city of Minneapolis may issue
an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the
Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding
the limitations of law, or local ordinance, or charter provision relating to zoning or school
or church distances. The licenses authorize sales on all days of the week to holders of tickets
for performances presented by the theaters and to members of the nonprofit corporations
holding the licenses and to their guests.

(b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland
Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510
Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter
provision.

(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah
Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue
South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter
provision relating to zoning or school or church distances.

(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
American Association of University Women, Minneapolis branch, for use on the premises
owned by the American Association of University Women, Minneapolis branch, at 2115
Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local
ordinances, or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent
malt liquor license to a restaurant located at 5000 Penn Avenue South, and an on-sale wine
license and an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue
South, notwithstanding any law or local ordinance or charter provision.

(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue South, the
Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the
Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located
at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 Lyndale Avenue South,
Brave New Institute located at 2605 Hennepin Avenue South, the Guthrie Lab located at
700 North First Street, and the Southern Theatre located at 1420 Washington Avenue South,
notwithstanding any law or local ordinance or charter provision. The license authorizes
sales on all days of the week.

(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to University
Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant or catering
operator at the building owned and operated by the University Gateway Corporation on the
University of Minnesota campus, notwithstanding limitations of law, or local ordinance or
charter provision. The license authorizes sales on all days of the week.

(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Walker
Art Center's concessionaire or operator, for a restaurant and catering operator on the premises
of the Walker Art Center, notwithstanding limitations of law, or local ordinance or charter
provisions. The license authorizes sales on all days of the week.

(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie
Theater's concessionaire or operator for a restaurant and catering operator on the premises
of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or charter
provisions. The license authorizes sales on all days of the week.

(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or operator
for a restaurant and catering operator on the premises of the Minnesota Book and Literary
Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local ordinance
or charter provision. The license authorizes sales on all days of the week.

(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant
located at 5411 Penn Avenue South, notwithstanding any law or local ordinance or charter
provision.

(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Museum
of Russian Art's concessionaire or operator for a restaurant and catering operator on the
premises of the Museum of Russian Art located at 5500 Stevens Avenue South,
notwithstanding any law or local ordinance or charter provision.

(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
American Swedish Institute or to its concessionaire or operator for use on the premises
owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding
limitations of law, or local ordinances, or charter provision relating to zoning or school or
church distances.

(n) Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue one or more on-sale intoxicating liquor licenses to the Minneapolis
Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity holding a concessions
or catering contract with the Minneapolis Institute of Arts for use on the premises of the
Minneapolis Institute of Arts. The licenses authorized by this subdivision may be issued
for space that is not compact and contiguous, provided that all such space is included in the
description of the licensed premises on the approved license application. The licenses
authorize sales on all days of the week.

(o) The city of Minneapolis may issue an on-sale intoxicating liquor license to Norway
House or to its concessionaire or operator for use on the premises owned by Norway House
at 913 East Franklin Avenue, notwithstanding limitations of law, or local ordinances, or
charter provision relating to zoning or school or church distances.

(p) Notwithstanding any other law, new text begin including section 340A.504, subdivision 3, relating
to seating requirements, new text end local ordinance, or charter provision, the city of Minneapolis may
issue one or more on-sale intoxicating liquor licenses to any entity holding a concessions
or catering contract with the Minneapolis Park and Recreation Board for use on deleted text begin the deleted text end new text begin
Minneapolis Park and Recreation Board new text end premises deleted text begin of the Downtown Commons Park, the
Minneapolis Sculpture Garden, or at Boom Island Park deleted text end . The licenses authorized by this
subdivision may be used for space specified within the park property, provided all such
space is included in the description of the licensed premises on the approved license
application. The licenses authorize sales on the dates on the approved license application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 3.

Minnesota Statutes 2022, section 340A.412, is amended by adding a subdivision
to read:

new text begin Subd. 12a. new text end

new text begin Transfers of wine. new text end

new text begin (a) Notwithstanding the provisions of subdivision 12,
the holder of an off-sale intoxicating liquor license may transfer wine from one licensed
premises to another provided that:
new text end

new text begin (1) the license for the transferring and receiving premises are held by the same licensee;
new text end

new text begin (2) the licensee notifies the wholesaler from whom the wine was purchased and the
Division of Alcohol and Gambling Enforcement of the Division of Public Safety, in writing,
at least three business days before the transfer is made, the specific product and quantity of
product being transferred;
new text end

new text begin (3) only one transfer is made from a licensed premises in a three-month period; and
new text end

new text begin (4) each transfer of wine must not exceed 75 cases of wine. Each case is limited to 12
bottles of wine.
new text end

new text begin (b) A licensee that is delinquent beyond the 30-day period in section 340A.318 is
prohibited from transferring wine under this subdivision.
new text end

new text begin (c) Transfers of wine must only occur within the state of Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 4.

Laws 2022, chapter 86, article 2, section 3, is amended to read:

Sec. 3. CITY OF ST. PAUL; LICENSE AUTHORIZED.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St.
Paul may issue a temporary on-sale malt liquor license to the Thai Cultural Council of
Minnesota new text begin or to a person or entity holding a concessions contract with the Thai Cultural
Council of Minnesota new text end . The license may authorize the sale of malt liquor on the grounds of
the State Capitol for both days of the Minnesota Songkran Festival. All provisions of
Minnesota Statutes, section 340A.404, subdivision 10, not inconsistent with this section,
apply to the license authorized by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 5. new text begin SPORTS AND EVENT CENTER LICENSE; EAGAN.
new text end

new text begin Notwithstanding Minnesota Statutes, chapter 340A, or any other local law or ordinance
to the contrary, the city of Eagan may issue up to three on-sale intoxicating liquor licenses
to the owner of a multiuse sports and event center located on property in the city of Eagan,
legally described as Outlot A, Viking Lakes 3rd Addition, or as may be described hereafter
due to subdivision or replatting, or to any facility operator, concessionaire, catering operator,
or other third-party food and beverage vendor for the center under contract with the owner.
A license issued under this section may be issued for a space that is not compact and
contiguous, provided that the licensed premises shall only be the space described in the
approved license. A license issued under this section authorizes sales on all days of the
week. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section,
apply to a license issued under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Eagan City Council
and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 6. new text begin SPECIAL LIQUOR LAW; CITY OF LITCHFIELD.
new text end

new text begin Notwithstanding Minnesota Statutes, section 624.701, the city of Litchfield may issue
an on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph
(d), for sales at town ball games played at a ballpark on school grounds.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin SPECIAL LIQUOR LAW; CITY OF WATKINS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 624.701, the city of Watkins may issue an
on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph (d),
for sales at town ball games played at a ballpark on school grounds, provided the board of
Independent School District No. 463, Eden Valley-Watkins, adopts a resolution approving
the issuance of the license. The provisions of Minnesota Statutes, section 624.701, do not
apply to the school grounds or buildings for a license issued under this section.
new text end

Sec. 8. new text begin SPECIAL LIQUOR LAW; CITY OF ROCHESTER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.404, the city of Rochester may issue
an on-sale wine license and an on-sale malt liquor license for beverage sales at a soccer
field, indoor soccer complex, or stadium located on property in the city of Rochester for
the purposes of soccer games and any other events at the soccer field, indoor soccer complex,
or stadium to the following:
new text end

new text begin (1) a person who is the owner of a soccer club;
new text end

new text begin (2) a person holding a concessions or management contract with the owner;
new text end

new text begin (3) a nonprofit organization that has established a soccer club; or
new text end

new text begin (4) an agent of the nonprofit organization.
new text end

new text begin A license issued under this section authorizes sales on all days of the week to persons
attending soccer games and any other events at the soccer field, indoor soccer complex, or
stadium.
new text end

ARTICLE 5

MEDICAL SUPPLEMENT IMPLEMENTATION DELAY

Section 1.

Laws 2023, chapter 57, article 2, section 7, the effective date, is amended to
read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 2.

Laws 2023, chapter 57, article 2, section 8, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 3.

Laws 2023, chapter 57, article 2, section 9, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 4.

Laws 2023, chapter 57, article 2, section 10, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 5.

Laws 2023, chapter 57, article 2, section 11, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 6.

Laws 2023, chapter 57, article 2, section 12, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 7.

Laws 2023, chapter 57, article 2, section 13, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 8.

Laws 2023, chapter 57, article 2, section 14, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

Sec. 9.

Laws 2023, chapter 57, article 2, section 15, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective August 1, deleted text begin 2025 deleted text end new text begin 2026 new text end , and applies to
policies offered, issued, or renewed on or after that date.

APPENDIX

Repealed Minnesota Statutes: S4097-2

45.014 SEAL OF DEPARTMENT OF COMMERCE.

The commissioner of commerce shall devise a seal for official use as the seal of the Department of Commerce. The seal must be capable of being legibly reproduced under photographic methods. A description of the seal, and a copy of it, must be filed in the Office of the Secretary of State.

53B.58 PAYROLL PROCESSING SERVICES; DISCLOSURES.

(a) A licensee that provides payroll processing services must:

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

(2) make available worker pay stubs or an equivalent statement to workers.

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

58.08 BONDS; LETTERS OF CREDIT.

Subd. 3.

Exemption.

Subdivision 2 does not apply to mortgage originators or mortgage servicers who are approved as seller/servicers by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

82B.25 VALUATION BIAS.

Subdivision 1.

Definition.

For the purposes of this section, "valuation bias" means to explicitly, implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased manner that harms a protected class, as defined by the Fair Housing Act of 1968, as amended.

Subd. 2.

Education.

A real property appraiser shall provide to the commissioner evidence of satisfactory completion of a continuing education course on the valuation bias of real property. An appraiser licensed after September 1, 2021, must complete the course required by this section prior to the appraiser's first license renewal.

325G.25 CONTRACT REGULATION.

Subd. 1a.

Alternative cancellation notice.

In lieu of the notice of cancellation required by subdivision 1, the seller may provide notice in a manner which conforms to applicable federal law or regulation or section 325G.08 so long as the notice provides the information required by subdivision 1.

332.3351 EXEMPTION FROM LICENSURE.

A collection agency shall be exempt from the licensing and registration requirements of this chapter if all of the following conditions are met:

(1) the agency is located in another state that regulates and licenses collection agencies, but does not require a Minnesota collection agency to obtain a license to collect debts in the agency's state if the agency's collection activities are limited in the same manner;

(2) the agency's collection activities are limited to collecting debts not incurred in this state from consumers located in this state; and

(3) the agency's collection activities in Minnesota are conducted by means of interstate communications, including telephone, mail, electronic mail, or facsimile transmission.

332.71 DEFINITIONS.

Subd. 8.

Harassment.

"Harassment" has the meaning given in section 609.748.