Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 504-H.F.No. 2106 
           An act relating to financial institutions; currency 
          exchanges; imposing distance limitations and operating 
          restrictions; requiring local approval of licenses; 
          amending Minnesota Statutes 1990, sections 8.31, 
          subdivision 1; 53A.02; 53A.03; 53A.04; 53A.05; and 
          53A.08; proposing coding for new law in Minnesota 
          Statutes, chapter 53A; repealing Minnesota Statutes 
          1990, section 53A.14. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 8.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INVESTIGATE OFFENSES AGAINST THE 
PROVISIONS OF CERTAIN DESIGNATED SECTIONS; ASSIST IN 
ENFORCEMENT.] The attorney general shall investigate violations 
of the law of this state respecting unfair, discriminatory, and 
other unlawful practices in business, commerce, or trade, and 
specifically, but not exclusively, the nonprofit corporation act 
(sections 317A.001 to 317A.909), the act against unfair 
discrimination and competition (sections 325D.01 to 325D.08), 
the unlawful trade practices act (sections 325D.09 to 325D.16), 
the antitrust act (sections 325D.49 to 325D.66), section 325F.67 
and other laws against false or fraudulent advertising, the 
antidiscrimination acts contained in section 325D.67, the act 
against monopolization of food products (section 325D.68), and 
the prevention of consumer fraud act (sections 325F.68 to 
325F.70), and chapter 53A regulating currency exchanges and 
assist in the enforcement of those laws as in this section 
provided. 
    Sec. 2.  Minnesota Statutes 1990, section 53A.02, is 
amended to read: 
    53A.02 [LICENSE.] 
    Subdivision 1.  [REQUIREMENT.] A person may not engage in 
the business of a currency exchange without first obtaining a 
license from the commissioner.  A person may operate currency 
exchanges at more than one location with one license.  Not more 
than one place of business may be operated under the same 
license, but the commissioner may issue more than one license to 
the same licensee upon compliance by the applicant with all the 
provisions of this chapter for each new license issued. 
    Subd. 2.  [DISTANCE LIMITATION.] No license may be issued 
or renewed under this chapter if the place of business to be 
operated under the license is located or proposed to be located 
within one-half mile of another licensed currency exchange.  The 
distance limitation imposed by this subdivision is measured by a 
straight line from the closest points of the closest structures 
involved. 
     Subd. 3.  [PROHIBITION.] A licensee may not contract with 
another person or business entity to manage the currency 
exchange business.  This subdivision does not prohibit the 
licensee from employing persons to operate a currency exchange 
facility. 
    Sec. 3.  Minnesota Statutes 1990, section 53A.03, is 
amended to read: 
    53A.03 [APPLICATION FOR LICENSE; FEES.] 
    (a) An application for a license must be in writing, under 
oath, and in the form prescribed and furnished by the 
commissioner and must contain the following: 
    (1) the full name and address (both of residence and place 
of business) of the applicant, and if the applicant is a 
partnership or association, of every member, and the name and 
business address if the applicant is a corporation; 
    (2) the county and municipality, with street and number, if 
any, of all currency exchange locations operated by the 
applicant; and 
    (3) the applicant's occupation or profession, for the ten 
years immediately preceding the application; present or previous 
connection with any other currency exchange in this or any other 
state; whether the applicant has ever been convicted of any 
crime; and the nature of the applicant's occupancy of the 
premises to be licensed; and if the applicant is a partnership 
or a corporation, the information specified in this paragraph 
must be supplied for each partner and each officer and director 
of the corporation.  If the applicant is a partnership or a 
nonpublicly held corporation, the information specified in this 
paragraph must be required of each partner and each officer, 
director, and stockholders owning in excess of ten percent of 
the corporate stock of the corporation.  
    (b) The application shall be accompanied by a nonrefundable 
fee of $250 for the review of the initial application.  Upon 
approval by the commissioner, an additional license fee of $50 
must be paid by the applicant as an annual license fee for the 
remainder of the calendar year.  An annual license fee of $50 is 
due for each subsequent calendar year of operation upon 
submission of a license renewal application on or before 
December 1.  Fees must be deposited in the state treasury and 
credited to the general fund.  Upon payment of the required 
annual license fee, the commissioner shall issue a license for 
the year beginning January 1. 
    (c) The commissioner shall require the applicant to submit 
to a background investigation conducted by the bureau of 
criminal apprehension as a condition of licensure.  As part of 
the background investigation, the bureau of criminal 
apprehension shall conduct criminal history checks of Minnesota 
records and is authorized to exchange fingerprints with the 
Federal Bureau of Investigation for the purpose of a criminal 
background check of the national files.  The cost of the 
investigation must be paid by the applicant. 
     (d) For purposes of this section, "applicant" includes an 
employee who exercises management or policy control over the 
company, a director, an officer, a limited or general partner, a 
manager, or a shareholder holding more than ten percent of the 
outstanding stock of the corporation. 
    Sec. 4.  Minnesota Statutes 1990, section 53A.04, is 
amended to read: 
    53A.04 [APPROVAL OR DENIAL OF AN APPLICATION.] 
    The commissioner shall approve or deny an application 
within 30 days from the completed filing of it. (a) Within 30 
days after the receipt of a complete application, the 
commissioner shall deny the application or submit the 
application to the governing body of the local unit of 
government in which the applicant is located or is proposing to 
be located.  The commissioner may not approve the application 
without the concurrence of the governing body.  The governing 
body shall give published notice of its intention to consider 
the issue and shall solicit testimony from interested persons, 
including those in the community in which the applicant is 
located or is proposing to be located.  If the governing body 
has not approved or disapproved the issue within 60 days of 
receipt of the application, concurrence is presumed.  The 
commissioner must approve or disapprove the application within 
30 days from receiving the decision of the governing body.  The 
governing body shall have the sole responsibility for its 
decision.  The state shall have no responsibility for that 
decision. 
    (b) If the application is denied, the commissioner shall 
send by mail notice of the denial and the reason for the denial 
to the applicant at the address contained in the application.  
If an application is denied, the applicant may, within 30 days 
of receiving the notice of a denial, request a contested case 
hearing pursuant to chapter 14; provided that if the denial is 
based upon the refusal of the governing body to concur the 
governing body must afford the applicant a hearing.  The 
applicant shall have no right to the hearing provided for in 
this section if the denial is based upon the governing body's 
refusal to concur but shall have a hearing before the governing 
body.  
    (c) This section applies to initial applications and 
renewal applications. 
    (d) The state shall have no responsibility for the action 
of the governing body. 
    Sec. 5.  Minnesota Statutes 1990, section 53A.05, is 
amended to read: 
    53A.05 [CHANGE OF NAME, OWNERSHIP, OR LOCATION.] 
    Subdivision 1.  [NAME OR LOCATION.] If a licensee proposes 
to change the name or location of any or all of its currency 
exchanges, or adds a new currency exchange location, the 
licensee shall file an application for approval of the change 
with the commissioner.  The commissioner shall not approve a 
change of location if the requirements of sections 53A.02, 
subdivision 2, and 53A.04 have not been satisfied.  If the 
change is approved by the commissioner, the commissioner shall 
issue an amended license in the licensee's new name or 
location.  A $50 fee must be paid for the amended license. 
     Subd. 2.  [OWNERSHIP.] The licensee shall notify the 
commissioner 30 business days in advance of any change in 
ownership of the currency exchange.  The commissioner may revoke 
the currency exchange license if the new ownership would have 
resulted in a denial of the initial license under the provisions 
of chapter 53A. 
    Sec. 6.  Minnesota Statutes 1990, section 53A.08, is 
amended to read: 
    53A.08 [BOND.] 
    Any Before a license may be issued to a currency exchange 
that engages in the sale of money orders or travelers' checks 
shall comply with bonding requirements pursuant to section 
48.151, the applicant shall file annually with and have approved 
by the commissioner a surety bond, issued by a bonding company 
authorized to do business in this state in the principal amount 
of $10,000.  The bond must run to the commissioner and is for 
the benefit of creditors of the currency exchange for liability 
incurred by the currency exchange on money orders issued or sold 
by the currency exchange, for liability incurred by the currency 
exchange for sums due to a payee or endorsee of a check, draft, 
or money order left with the currency exchange for collection, 
and for liability incurred by the currency exchange in 
connection with providing currency exchange services.  The 
commissioner may require a licensee to file a bond in an 
additional amount if the commissioner considers it necessary to 
meet the requirements of this section.  In determining the 
additional amount of the bond which may be required, the 
commissioner may require the licensee to file its financial 
records, including all bank statements, pertaining to the sale 
of money orders for the preceding 12-month period.  In no case 
may the bond be less than the initial $10,000 or more than the 
outstanding liabilities. 
    Sec. 7.  [53A.081] [ANNUAL REPORT AND INVESTIGATIONS.] 
    Subdivision 1.  [ANNUAL REPORT.] On or before March 1, a 
licensee shall file an annual report with the commissioner for 
the previous calendar year.  The report must contain information 
that the commissioner may reasonably require concerning, and for 
the purpose of examining, the business and operations of each 
licensed currency exchange. 
    Subd. 2.  [INVESTIGATION.] The commissioner may at any time 
and shall at least once in each year investigate the currency 
exchange business of any licensee and of every person, 
partnership, association, and corporation engaged in the 
business of operating a currency exchange in the manner provided 
under section 45.027. 
     Subd. 3.  [FEES AND EXPENSES.] The licensee shall pay the 
costs of an examination or investigation in the manner provided 
under section 60A.03, subdivision 5. 
    Sec. 8.  [REPEALER.] 
    Minnesota Statutes 1990, section 53A.14, is repealed. 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1 to 8 are effective the day following final 
enactment.  Section 2, subdivisions 2 and 3, apply to licenses 
issued for new places of business that begin operating on or 
after the effective date.  Sections 1; 2, subdivision 1; and 3 
to 8 apply to licenses issued or renewed on or after that date. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 23, 1992, 11:54 a.m.