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Key: (1) language to be deleted (2) new language

                            CHAPTER 326-S.F.No. 3174 
                  An act relating to commerce; creating a small business 
                  category under the Money Transmitter Act; modifying 
                  regulations; amending Minnesota Statutes 2001 
                  Supplement, sections 53B.05, subdivision 1; 53B.08, 
                  subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        53B.05, subdivision 1, is amended to read: 
           Subdivision 1.  [NET WORTH.] Each licensee engaging in 
        money transmission in three or fewer locations in the state, 
        either directly or through authorized delegates, must have a net 
        worth of at least $25,000.  Each licensee engaging in money 
        transmission at more than three locations in the state, but 
        fewer than seven locations, either directly or through 
        authorized delegates, must have a net worth of at least 
        $50,000.  Each licensee under this chapter shall at all times 
        have a net worth of not less than $100,000, calculated in 
        accordance with generally accepted accounting principles.  
        Licensees engaging in money transmission at more than one 
        location six locations in the state, either directly or through 
        authorized delegates, shall have an additional a net worth of 
        $100,000 and an additional net worth of $50,000 per for each 
        location or authorized delegate located in the state in excess 
        of seven, as applicable, to a maximum of $500,000.  Net worth 
        shall be calculated in accordance with generally accepted 
        accounting principles. 
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        53B.08, subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENT.] Each application must be 
        accompanied by a surety bond, irrevocable letter of credit, or 
        other similar security device acceptable to the commissioner in 
        the amount of $50,000 $25,000.  If the applicant proposes to 
        engage in business under this chapter at more than one location 
        three locations, but less than seven locations, through 
        authorized delegates or otherwise, then the amount of the 
        security device must be increased by $10,000 per location, up to 
        a maximum of $250,000 to $50,000.  If the applicant proposes to 
        engage in business under this chapter at more than six 
        locations, through authorized delegates or otherwise, then the 
        amount of the security device must be increased by $50,000 for 
        each location over six, up to a maximum of $250,000.  The 
        security device must be in a form satisfactory to the 
        commissioner and must run to the state for the benefit of any 
        claimants against the licensee to secure the faithful 
        performance of the obligations of the licensee with respect to 
        the receipt, handling, transmission, and payment of money in 
        connection with the sale and issuance of payment instruments or 
        transmission of money.  In the case of a bond, the aggregate 
        liability of the surety in no event shall exceed the principal 
        sum of the bond.  Claimants against the licensee may themselves 
        bring suit directly on the security device or the commissioner 
        may bring suit on behalf of these claimants, either in one 
        action or in successive actions. 
           Sec. 3.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor April 4, 2002 
           Signed by the governor April 8, 2002, 2:32 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes