Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2016, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 134--S.F.No. 3175
An act
relating to commerce; regulating bullion product dealers;
amending Minnesota Statutes 2014, sections 80G.01; 80G.02; 80G.03; 80G.04; 80G.05; 80G.06; 80G.07, subdivision 1; 80G.08; 80G.10; repealing Minnesota Statutes 2014, section 80G.07, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 80G.01, is amended to read:
80G.01 DEFINITIONS.
Subdivision 1.
Scope.
For purposes of this chapter, the following terms have the meanings given to them in this section.
Subd. 2.
Bullion deleted text begin coindeleted text end new text begin productnew text end .
"Bullion deleted text begin coindeleted text end new text begin productnew text end " means any coinnew text begin , round, bar, or ingotnew text end containing deleted text begin more than one percent by weight ofdeleted text end silver, gold, platinum,new text begin palladium, new text end or other precious metal.
Subd. 3.
deleted text begin Bullion coindeleted text end Dealer.
(a) Subject to the exceptions in paragraph (b), a "deleted text begin bullion coindeleted text end dealer" means any person who buys, sells, solicits, or markets bullion deleted text begin coins deleted text end new text begin productsnew text end or investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end to consumers and deleted text begin is eitherdeleted text end new text begin :new text end
new text begin (1) isnew text end incorporated, registered, domiciled, or otherwise located in this statedeleted text begin , or whodeleted text end new text begin ;new text end
new text begin (2) has a dealer representative located in this state; or new text end
new text begin (3)new text end does business with a consumer deleted text begin domiciled, residing, or otherwise located in this statedeleted text end new text begin at a location in this state, or delivers or ships a bullion product or makes a payment to a consumer at an address in this state, unless the transaction occurs when the consumer is at a business location outside of this statenew text end .
(b) A deleted text begin bullion coindeleted text end dealer does not include any of the following persons:
(1) a person who engages only in wholesale bullion deleted text begin coindeleted text end new text begin productnew text end transactions with deleted text begin bullion coindeleted text end new text begin other persons who engage only in wholesale bullion product transactions or withnew text end dealers whonew text begin buy ornew text end sell at retail and are properly registered under this chapter;
(2) a person who engages only in transactions at occasional garage or yard sales held at the seller's residence, farm auctions held at the seller's residence, or estate sales held at the decedent's residence;
(3) a person who is properly registered pursuant to chapter 80A, or the federal Securities Exchange Act of 1934 and rules promulgated thereunder as a securities broker dealer or broker dealer agent;
(4) an auctioneer who auctions deleted text begin coins at auctiondeleted text end new text begin bullion productsnew text end on behalf of an owner, if the auctioneer does not take title or ownership of the deleted text begin coinsdeleted text end new text begin bullion productsnew text end , or the operator of an Internet Web site that allows users to offer the sale of deleted text begin coinsdeleted text end new text begin bullion productsnew text end through that Web site, does not set the price, is not the seller of record, and does not take possession of any deleted text begin coinsdeleted text end new text begin bullion productsnew text end to be offered;
(5) a person who engages only in transactions at deleted text begin occasionaldeleted text end new text begin no more than 12new text end trade showsnew text begin per year in this statenew text end where the consumer is present and the transaction is made at the trade show; or
(6) a federally or state-chartered bank, bank and trust, savings bank, savings association, or credit union or any operating subsidiary of them.
Subd. 4.
deleted text begin Coindeleted text end Dealer representative.
"deleted text begin Coindeleted text end Dealer representative" means any natural person acting as an employee, contractor, or agent of a deleted text begin bullion coindeleted text end dealer and who has interactions with consumers for the purpose of the buying, selling, solicitation, or marketing of bullion deleted text begin coinsdeleted text end new text begin productsnew text end or investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end . new text begin This term does not mean a natural person who has interactions with consumers solely for administrative purposes.new text end
Subd. 5.
Commissioner.
"Commissioner" means the commissioner of commerce.
Subd. 6.
Owner.
"Owner" means any person who has an ownership interest in a deleted text begin bullion coindeleted text end dealer, regardless of whether directly or indirectly, of more than ten percent and who is actively engaged in the direction, management, oversight, or operation of the deleted text begin bullion coindeleted text end dealer or its business affairs.
Subd. 8.
Precious metal content.
"Precious metal content" means the quantity, measured in gramsnew text begin or troy ouncesnew text end , of gold, silver, platinum,new text begin palladium,new text end or other precious metal in a deleted text begin coindeleted text end new text begin bullion productnew text end and the percentage that the precious metal constitutes of the total weight of the deleted text begin coindeleted text end new text begin bullion productnew text end .
Sec. 2.
Minnesota Statutes 2014, section 80G.02, is amended to read:
80G.02 REGISTRATION.
Subdivision 1.
Registration required.
deleted text begin Beginning July 1, 2014,deleted text end It deleted text begin shall bedeleted text end new text begin is new text end unlawful for a deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative to solicit, market, buy, sell, or deliver bullion deleted text begin coinsdeleted text end new text begin productsnew text end or investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end to a consumer without being registered by the commissioner as provided for in this chapterdeleted text begin , if the bullion coin dealer has engaged in a bullion coin transaction or transactions with consumers during the 12-month period prior to July 1, 2014, that exceed $5,000 in the aggregate, as determined by the transactions' sale prices. If a bullion coin dealer was not required to be registered beginning on July 1, 2014, the bullion coindeleted text end new text begin . Anew text end dealer must submit an application to register itself and each of its deleted text begin coindeleted text end dealer representatives within deleted text begin 30deleted text end new text begin 45new text end days of reaching deleted text begin $5,000deleted text end new text begin $25,000new text end in the aggregate of bullion deleted text begin coindeleted text end new text begin productnew text end transactions with consumers deleted text begin in any 12-month period prior todeleted text end new text begin betweennew text end July 1new text begin and June 30new text end of any deleted text begin calendardeleted text end year, as determined by the transactions' salenew text begin or purchasenew text end prices. Once a deleted text begin bullion coindeleted text end dealer is required to register itself and its deleted text begin coindeleted text end dealer representatives, the deleted text begin coindeleted text end dealer must thereafter renew its registration and the registration of each of its deleted text begin coindeleted text end dealer representatives in accordance with this chapter, regardless of the aggregatenew text begin annualnew text end amount of transactions, unless the person ceases to be a deleted text begin bullion coindeleted text end dealer. A deleted text begin coindeleted text end dealer representative may not buy, sell, solicit, or market bullion deleted text begin coinsdeleted text end new text begin productsnew text end or investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end on behalf of a deleted text begin bullion coindeleted text end dealer unless the dealer is properly registered with the commissioner under this section.
Subd. 2.
Registration obligations.
Registrations issued or renewed by the commissioner under this chapter shall expire on June 30 and must be renewed.
Subd. 3.
Registration application and renewal.
The application and renewal forms shall include the following information, as applicable, which shall be considered by the commissioner in determining whether to issue a registration and whether to thereafter renew the registration:
(1) the name, assumed names, doing business as names, including caller identification names, and business addresses of the deleted text begin bullion coindeleted text end dealer, the name of each owner and officer, and the name and primary work location of each deleted text begin coindeleted text end dealer representative. A deleted text begin bullion coindeleted text end dealer who desires to carry on business in more than one location shall identify each address where business is conducted;
(2) if a deleted text begin bullion coindeleted text end dealer is doing business under any name other than the dealer's legal name, documentation that the assumed name has been properly filed with the secretary of statenew text begin or appropriate government officenew text end ;
(3) thenew text begin dealer's primarynew text end telephone deleted text begin numbers, including cellular phone numbers deleted text end new text begin numbernew text end , deleted text begin electronic mail addressesdeleted text end new text begin e-mail addressnew text end , and Web site domain deleted text begin namesdeleted text end new text begin namenew text end used or intended to be used by the deleted text begin bullion coindeleted text end dealer and its deleted text begin coindeleted text end dealer representatives to buy, sell, solicit, market, or deliver to consumers bullion deleted text begin coindeleted text end new text begin productsnew text end or investments in bullion deleted text begin coindeleted text end new text begin productsnew text end ;
(4) the disclosure of all criminal convictions by any courtnew text begin , including military courts, new text end within the last ten yearsnew text begin , except those relating to misdemeanor traffic citations and misdemeanor convictions involving driving under the influence, driving while intoxicated, driving without a license, reckless driving, or driving with a suspended or revoked license, and juvenile offenses, new text end for the deleted text begin bullion coindeleted text end dealer and each officer and owner of the deleted text begin bullion coindeleted text end dealer and for each of its deleted text begin coindeleted text end dealer representatives;
(5) the disclosure of any civil judgments in favor of a government entity or government entity orders entered, filed, or issued against the deleted text begin bullion coindeleted text end dealer, its officers and owners, or its deleted text begin coindeleted text end dealer representatives within the last ten years for violation of consumer protection laws or unfair trade practice laws or for failure to account to a consumer for money or property received from the consumer;
(6) the disclosure of any settlement or other agreement with any government entity within the last ten years resolving concerns that the deleted text begin bullion coindeleted text end dealer, its officers and owners, or its coin dealer representatives violated consumer protection or unfair trade practice laws, or for failure to account to a consumer for money or property received from the consumer; and
(7) the disclosure of any instance in which the deleted text begin bullion coindeleted text end dealer, its officers and owners, and its deleted text begin coindeleted text end dealer representatives were at any time permanently or temporarily prohibited by any court of competent jurisdiction or ordered to cease and desist as the result of a government agency action from engaging in buying, selling, soliciting, or marketing of bullion deleted text begin coindeleted text end new text begin productsnew text end or investments in bullion deleted text begin coindeleted text end new text begin productsnew text end . A deleted text begin bullion coindeleted text end dealer may rely on the screening process provided for in section 80G.05 and the statements of its deleted text begin coindeleted text end dealer representatives for the purposes of complying with the disclosure requirements of this clause relating to deleted text begin coindeleted text end dealer representatives, provided that such reliance is reasonable, in good faith, and the deleted text begin bullion coindeleted text end dealer has no knowledge of information suggesting that the screening results or statement are inaccurate.
Subd. 4.
Notice of change in registration information.
A deleted text begin bullion coindeleted text end dealer must provide the commissioner written notice of a change in the dealer's name, assumed names, doing business as names, business addresses, including all business addresses at which it or its deleted text begin coindeleted text end dealer representatives conduct business, owners, deleted text begin electronic maildeleted text end new text begin e-mailnew text end addresses, Web site domain names, ornew text begin primarynew text end telephone deleted text begin numbersdeleted text end new text begin numbernew text end used by it or its deleted text begin coin deleted text end dealer representatives to buy, sell, solicit, or market to consumers bullion deleted text begin coindeleted text end new text begin productsnew text end or investments in bullion deleted text begin coindeleted text end new text begin productsnew text end no later than deleted text begin tendeleted text end new text begin 30new text end days after the change occurs.
Subd. 5.
Registration fee.
(a) The fee for each registration under this chapter shall be as follows:
(1) deleted text begin bullion coindeleted text end dealers, $25; and
(2) deleted text begin coindeleted text end dealer representatives, $10.
(b) The commissioner, based on the cost of processing registrations, may adjust the registration fee on an annual basis as needed.
Sec. 3.
Minnesota Statutes 2014, section 80G.03, is amended to read:
80G.03 REGISTRATION DENIAL, NONRENEWAL, REVOCATION, AND SUSPENSION.
Subdivision 1.
Authority.
The commissioner may, by order, suspend, revoke, or refuse to issue or renew a deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative registration for any one or more of the following causes:
(1) providing incorrect, false, misleading, or incomplete information to the commissioner or refusing to allow a reasonable inspection of information and documents in the possession of the deleted text begin bullion coindeleted text end dealer, deleted text begin coindeleted text end dealer representative, or a third party or to allow a reasonable inspection of premises;
(2) obtaining or attempting to obtain a registration through misrepresentation or fraud;
(3) having a deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative registration or its equivalent, including licensure under section 325F.73, denied, suspended, or revoked by any locality within the state or other state, province, district, or territory;
(4) being permanently or temporarily enjoined by any court of competent jurisdiction or being ordered to cease and desist by a government agency from engaging in or continuing any conduct or practice involving the buying, selling, soliciting, or marketing of bullion deleted text begin coinsdeleted text end new text begin productsnew text end , investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end , or precious metal to consumers;
(5) violating the provisions of this chapter or sections 45.027, 325D.43 to 325D.48, 325F.67, 325F.68 to 325F.69, 325F.694, and 325F.73 to 325F.744, or federal or state taxation or labor law; or
(6) violating a subpoena or order of the commissioner or a court issued pursuant to this chapter or sections 45.027, 325D.43 to 325D.48, 325F.67, 325F.68 to 325F.69, 325F.694, 325F.70, and 325F.73 to 325F.744.
Subd. 2.
deleted text begin Bullion coindeleted text end Dealer responsibility for actions of deleted text begin coindeleted text end dealer representatives.
The commissioner may take action against a deleted text begin bullion coindeleted text end dealer for any violations of this chapter by its deleted text begin coindeleted text end dealer representatives conducting activities on behalf of or at the direction of the deleted text begin bullion coindeleted text end dealer. The commissioner may also take action against the deleted text begin coindeleted text end dealer representative.
Subd. 3.
Other authority of the commissioner.
If a registration lapses, is surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the registration was last effective and enter a revocation order as of the last date on which the registration was in effect, and impose a civil penalty as provided for in section 45.027, subdivision 6.
Subd. 4.
Effect of revocation.
A revocation of a registration prohibits the deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representatives from making a new application for a registration for at least two years from the effective date of the revocation.
Sec. 4.
Minnesota Statutes 2014, section 80G.04, is amended to read:
80G.04 CRIMINAL CONVICTIONS.
Subdivision 1.
deleted text begin Bullion coindeleted text end Dealer registration precluded.
The commissioner must deny an application for registration or renewal of a deleted text begin bullion coindeleted text end dealer, or revoke such registration, if the bullion coin dealer or its owners or officers have within the last ten years been convicted in any court of any financial crime or other crime involving fraud or theft.
Subd. 2.
deleted text begin Coindeleted text end Dealer representative registration precluded.
The commissioner must deny an application for registration or renewal of a deleted text begin coindeleted text end dealer representative, or revoke such registration, if the deleted text begin coindeleted text end dealer representative has within the last ten years been convicted in any court of any financial crime or other crime involving fraud or theft.
Sec. 5.
Minnesota Statutes 2014, section 80G.05, is amended to read:
80G.05 SCREENING.
Subdivision 1.
Screening process required.
Each deleted text begin bullion coindeleted text end dealer must establish procedures to screen each of its owners and officers and each of its deleted text begin coin deleted text end dealer representatives prior to submitting the application to the commissioner for initial registration and at each renewal. The results of such screenings shall benew text begin kept on file by the dealer and, if requested by the commissioner,new text end provided to the commissioner as part of the initial registration and all renewal registrations deleted text begin if requested by the commissionerdeleted text end .
Subd. 2.
Initial screening.
The screening process for initial registration must be done no more than 60 days before the submission of an application for registration. The process must include a national criminal history record search, a judgment search, and a county criminal history search for all counties where the owner, officer, or deleted text begin coindeleted text end dealer representative has resided within the immediately preceding ten years. Each deleted text begin bullion coin deleted text end dealer shall use a reputable, reliable, and accurate vendor authorized to do business in deleted text begin Minnesotadeleted text end new text begin any statenew text end to conduct the background screening process on its owners, officers, and deleted text begin coindeleted text end dealer representatives.
Subd. 3.
Renewal screening.
The screening process for the renewal of a registration must include a national criminal history record search, a judgment search, and county criminal history search for all counties where the owner, officer, or deleted text begin coindeleted text end dealer representative has resided since satisfactorily completing the last screening process conducted pursuant to this section. Screening for renewal of the owner, officer, and deleted text begin coin deleted text end dealer representative registrations must take place no more than 60 days before the submission of an application for renewal of a registration.
Sec. 6.
Minnesota Statutes 2014, section 80G.06, is amended to read:
80G.06 SURETY BOND.
Subdivision 1.
Surety bond requirement.
Every deleted text begin bullion coindeleted text end dealer shall maintain a current, valid surety bond issued by a surety company admitted to do business in Minnesota in an amount based on the transactions (purchases from and sales to consumers at retail) during the 12-month period prior to registration, or renewal, whichever is applicable.
The amount of the surety bond shall be as specified in the table below:
| Transaction Amount in Preceding 12-month Period |
Surety Bond Required |
| deleted text begin $0deleted text end new text begin $25,000new text end to $200,000 | $25,000 |
| $200,000.01 to $500,000 | $50,000 |
| $500,000.01 to $1,000,000 | $100,000 |
| $1,000,000.01 to $2,000,000 | $150,000 |
| Over $2,000,000 | $200,000 |
Subd. 2.
Action on bond permitted.
A consumer injured in money or property by a deleted text begin bullion coindeleted text end dealer's or deleted text begin coindeleted text end dealer representative's failure to provide bullion deleted text begin coins deleted text end new text begin productsnew text end that the consumer has paid for or failure to remit money or goods owed to the consumer in connection with the consumer's sale of bullion deleted text begin coinsdeleted text end new text begin productsnew text end may file a claim with the surety and if the claim is not paid, is authorized to bring an action based on the bond and recover against the surety. The commissioner or attorney general may also file a claim and bring an action on the bond and recover against the surety on behalf of a consumer so injured.
Sec. 7.
Minnesota Statutes 2014, section 80G.07, subdivision 1, is amended to read:
Subdivision 1.
Sales practices.
No deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative shall:
(1) prior to a transaction regarding bullion deleted text begin coinsdeleted text end new text begin productsnew text end , or concurrent with the delivery thereof, fail to provide to the consumer deleted text begin in writingdeleted text end new text begin an invoice, whichnew text end , in a clear and conspicuous manner, new text begin disclosesnew text end new text begin the dealer's registration number, the Department of Commerce's e-mail address and telephone number,new text end the sale or purchase price deleted text begin anddeleted text end new text begin ,new text end the deleted text begin precious metal contentdeleted text end new text begin quantity new text end of the bullion deleted text begin coinsdeleted text end new text begin productsnew text end deleted text begin involved in the transactiondeleted text end new text begin , and specifically identifies and describes the bullion productsnew text end deleted text begin . The written notice shall also include the bullion coin dealer's registration identification information issued by the commissioner, and the Department of Commerce's e-mail address and telephone number. A copy of the written notice shall be provided to the consumer and a copy retained by the bullion coin dealerdeleted text end new text begin , as well as their precious metal content, but only if it differs from the precious metal content specified by a government mint issuing the product and struck on the product, or if the product is not issued by a government mintnew text end ;
(2)new text begin fail to investigate any consumer complaint and retain records of all consumer complaints, the results of its investigations, and the dealer's response and resolution of the complaint;new text end
new text begin (3)new text end fail to delivernew text begin by common carriernew text end bullion deleted text begin coinsdeleted text end new text begin productsnew text end to a consumer within the time agreed upon with the consumer or, if no such agreement exists, within 30 days after the consumer has paid for the deleted text begin coinsdeleted text end new text begin bullion productsnew text end ;
deleted text begin (3)deleted text end new text begin (4)new text end fail to pay a consumer for purchased bullion deleted text begin coinsdeleted text end new text begin productsnew text end within the time agreed upon with the consumer or, if no such agreement exists, within 30 days after the consumer has provided the deleted text begin coinsdeleted text end new text begin bullion productsnew text end ;
deleted text begin (4) fail to provide a written invoice at the time of the transaction specifically identifying and describing the bullion coins involved in the transaction, the quantity of bullion coins involved in the transaction, and the bullion coins' sale or purchase price and precious metal content. The written invoice shall include the bullion coin dealer registration identification information issued by the commissioner, and the Department of Commerce's e-mail address and telephone number. A copy of the transaction documentation shall be provided to the consumer and a copy retained by the bullion coin dealer; deleted text end
(5) misrepresent the delivery date of bullion deleted text begin coinsdeleted text end new text begin productsnew text end or payment for bullion deleted text begin coinsdeleted text end new text begin productsnew text end , or the dealer or representative's professional qualifications, affiliations, or registration;
(6) misrepresent any material aspect of a bullion deleted text begin coindeleted text end new text begin productnew text end , including its performance, efficacy, nature, investment value, central characteristics, liquidity, earnings potential, or profitability;
(7) misrepresent the manner in which any bullion deleted text begin coinsdeleted text end new text begin productsnew text end a consumer provides will be stored or otherwise handled once received;
(8) renegotiate the terms of a sale or purchase after receiving a consumer's payment or bullion deleted text begin coinsdeleted text end new text begin productsnew text end without first obtaining the consumer's agreement to renegotiate and offering the consumer the option to have the payment fully refunded or the entirety of the bullion deleted text begin coinsdeleted text end new text begin productsnew text end returned;
(9) fail to respond within three business days to a consumer inquiry about the delivery status of bullion deleted text begin coinsdeleted text end new text begin productsnew text end that the consumer has paid for but not yet received or the status of a payment for bullion deleted text begin coinsdeleted text end new text begin productsnew text end that the consumer has already provided;
(10) telephone or solicit a consumer, or sell or provide the consumer's name to any other deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative, after the consumer requests not to be contacted;
(11) violate a subpoena or order of the commissioner or a court;
(12) make any communication to a potential buyer or seller of bullion deleted text begin coinsdeleted text end new text begin products new text end that misrepresents the relationship, if any, between the deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative and any government agency or mint;
(13) improperly withhold, misappropriate, or convert any money or properties received in the course of buying, selling, soliciting, or marketing bullion deleted text begin coinsdeleted text end new text begin productsnew text end or investments in bullion deleted text begin coinsdeleted text end new text begin productsnew text end to consumers;
(14) misrepresent the terms of an actual or proposed purchase or sale of bullion deleted text begin coins deleted text end new text begin productsnew text end or investment in bullion deleted text begin coinsdeleted text end new text begin productsnew text end to a consumer; or
(15) violate any other federal, state, or local law or rule related to selling, purchasing, soliciting, or marketing of bullion deleted text begin coindeleted text end new text begin productsnew text end , investments in bullion deleted text begin coindeleted text end new text begin productsnew text end , or precious metals, or any federal, state, or local law related to fraudulent, coercive, or dishonest practices, or federal, state, or local law related to taxation or labor standards.
Sec. 8.
Minnesota Statutes 2014, section 80G.08, is amended to read:
80G.08 CRIMINAL VIOLATION.
A person who conducts business as a deleted text begin bullion coindeleted text end dealer or as a deleted text begin coindeleted text end dealer representative without having first registered with the commissionernew text begin as required in section 80G.02, subdivision 1new text end , or who carries on such business after the revocation, suspension, or expiration of a registration, or who violates section 80G.07, subdivision 1, clause deleted text begin (2) ordeleted text end (3) new text begin or (4)new text end , is guilty of a misdemeanor.
Sec. 9.
Minnesota Statutes 2014, section 80G.10, is amended to read:
80G.10 INVESTIGATIONS AND CIVIL ENFORCEMENT.
Subdivision 1.
Civil action instituted by commissioner.
If the commissioner believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has, is, or is about to engage in an act, practice, or course of business that materially aids a violation of this chapter or a rule adopted or order issued under this chapter, the commissioner may maintain an action in the district court to enjoin the act, practice, or course of business and to enforce compliance with this chapter or a rule adopted or order issued under this chapter.
Subd. 2.
Relief available.
In an action under this section and on a proper showing, the court may:
(1) issue a permanent or temporary injunction, restraining order, or declaratory judgment;
(2) order other appropriate or ancillary relief, which may include:
(i) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator, that may be the commissioner, for the defendant or the defendant's assets;
(ii) ordering the commissioner to take charge and control of a defendant's property, including investment accounts and accounts in a depository institution, rents, and profits; to collect debts; and to acquire and dispose of property;
(iii) imposing a civil penalty up to $10,000 for each violation; an order of rescission, restitution, or disgorgement directed to a person that has engaged in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or the predecessor act; and
(iv) ordering the payment of prejudgment and postjudgment interest; or
(3) order such other relief as the court considers appropriate.
Subd. 3.
No bond required.
The commissioner may not be required to post a bond in an action or proceeding under this chapter.
Subd. 4.
Commissioner authority.
(a) If the commissioner determines that a person has engaged, is engaged, or is about to engage in an act, practice, or course of conduct constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has materially aided, is materially aiding, or is about to materially aid an act, practice, or course of conduct constituting a violation of this chapter or rule adopted or order issued under this chapter the commissioner may:
(1) issue an order directing the person to cease and desist from engaging in the act, practice, or conduct or to take other action necessary or appropriate to comply with this chapter; or
(2) issue an order denying, suspending, revoking, or conditioning the registration of the deleted text begin bullion coindeleted text end dealer or deleted text begin coindeleted text end dealer representative.
(b) Upon issuance of an order, the commissioner shall promptly serve each person subject to the order with a copy of the order and a notice that the order has been issued. The order must include a statement of the reasons for the order and whether the commissioner will seek a civil penalty or costs of the investigation, and notice that the person must within 30 days of being served with the order, request in writing a hearing and that within 15 days after receipt of a written hearing request from the person, the matter will be scheduled for a hearing. If a person subject to the order does not request a hearing within 30 days after the date of service of the order, the order becomes final as to that person by operation of law. If a hearing is requested, the commissioner, after notice of an opportunity for hearing to each person subject to the order, may modify or vacate the order or extend it until final determination.
(c) If a hearing is requested pursuant to paragraph (b), a hearing must be held under chapter 14 and a final order may not be issued unless the commissioner makes findings of fact and conclusions of law in a record according to chapter 14. The final order may make final, vacate, or modify the order issued under paragraph (a).
(d) If a petition for judicial review of a final order is not filed in accordance with chapter 14, the commissioner may file a certified copy of the final order with the clerk of a court of competent jurisdiction. The order so filed has the same effect as a judgment of the court and may be recorded, enforced, or satisfied in the same manner as a judgment of the court.
(e) If a person does not comply with an order under this section, the commissioner may petition a court of competent jurisdiction to enforce the order. The court may not require the commissioner to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order. The court may impose a further civil penalty against the person for contempt in an amount up to $10,000 for each violation and may grant any other relief the court determines is just and proper in the circumstances.
(f) In addition to the authority granted under this chapter, the commissioner has all the authority provided under section 45.027 to ensure compliance with this chapter.
Sec. 10.
new text begin REPEALER. new text end
new text begin Minnesota Statutes 2014, section 80G.07, subdivision 2, new text end new text begin is repealed. new text end
Sec. 11.
new text begin EFFECTIVE DATE. new text end
new text begin Sections 1 to 10 are effective July 1, 2016. new text end
Presented to the governor May 18, 2016
Signed by the governor May 19, 2016, 11:05 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes