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HF4188 • 2026
Various consumer protections for insurance and financial products modified, virtual-currency kiosks prohibited, various provisions modified governing securities broker-dealers and broker-dealers' agents, technical changes made to various provisions governed or administered by the Department of Commerce, and unclaimed property governing provisions modified and added.
Various consumer protections for insurance and financial products modified, virtual-currency kiosks prohibited, various provisions modified governing securities broker-dealers and broker-dealers' agents, technical changes made to various provisions governed or administered by the Department of Commerce, and unclaimed property governing provisions modified and added.
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-07
House
Committee report, to adopt as amended
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2026-03-12
House
Introduction and first reading, referred to Commerce Finance and Policy
Official Summary Text
Various consumer protections for insurance and financial products modified, virtual-currency kiosks prohibited, various provisions modified governing securities broker-dealers and broker-dealers' agents, technical changes made to various provisions governed or administered by the Department of Commerce, and unclaimed property governing provisions modified and added.
Current Bill Text
Read the full stored bill text
A bill for an act relating to commerce; modifying various consumer protections for insurance and financial products; prohibiting virtual-currency kiosks; modifying various provisions governing securities broker-dealers and broker-dealers' agents; making technical changes to various provisions governed or administered by the Department of Commerce; modifying and adding provisions governing unclaimed property; providing penalties; amending Minnesota Statutes 2024, sections 46.044, subdivision 1; 48.195; 49.37; 53B.69, subdivision 10; 58.14, subdivisions 3, 4, 5, by adding a subdivision; 58.18, subdivision 4; 58B.02, by adding subdivisions; 58B.03, subdivisions 10, 11; 58B.051; 58B.06, subdivisions 4, 6; 60A.13, subdivisions 1, 6; 72A.061, subdivision 5; 72A.18, subdivision 2, by adding subdivisions; 72A.20, subdivision 2, by adding a subdivision; 80A.50; 80A.69; 80C.12, subdivision 1; 80G.01, subdivision 5a; 239.761, subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 239.77, subdivision 1; 296A.01, subdivisions 7, 8, 14, 19, 22, 26, 28, 35; 325E.21, subdivisions 1b, 2c; 332.32; 345.31, by adding a subdivision; 345.43, by adding a subdivision; Minnesota Statutes 2025 Supplement, sections 41A.09, subdivision 2a; 58B.02, subdivision 8a; 80A.66; 239.761, subdivisions 3, 4, 5, 6; 296A.01, subdivisions 20, 23, 24; proposing coding for new law in Minnesota Statutes, chapters 53B; 58; 80A; 82B; 82C; 345; repealing Minnesota Statutes 2024, sections 48.158; 53B.69, subdivisions 3b, 3c; 53B.75, subdivisions 1, 2, 3, 4, 5. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: ARTICLE 1 CONSUMER PROTECTION Section 1. Minnesota Statutes 2024, section 53B.69, subdivision 10, is amended to read: Subd. 10. Virtual currency kiosk. "Virtual currency kiosk" means an electronic terminal acting as a mechanical agent new text begin or a person acting on behalf new text end of the virtual currency kiosk operator to enable the virtual currency kiosk 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. Sec. 2. new text begin [53B.751] VIRTUAL CURRENCY KIOSKS; PROHIBITION. new text end new text begin Subdivision 1. new text end new text begin Virtual currency kiosks prohibited. new text end new text begin (a) Beginning August 1, 2026, a person is prohibited from installing, operating, maintaining, or making available for use a virtual currency kiosk. new text end new text begin (b) On or before December 31, 2026, a virtual currency kiosk operator must remove the virtual currency kiosk from any location where the virtual currency kiosk is visible or accessible to the public. new text end new text begin Subd. 2. new text end new text begin Payout. new text end new text begin (a) On or before December 31, 2026, a virtual currency kiosk operator that conducts virtual currency transactions exclusively through a virtual currency kiosk must pay out any money or virtual currency held for or owed to a new or existing customer that exists as a result of virtual currency kiosk transactions. new text end new text begin (b) A new or existing customer may elect, at any time before December 31, 2026, to receive a payout under this subdivision: new text end new text begin (1) in United States dollars, in an amount equal to the market value of the customer's virtual currency plus any fiat currency; or new text end new text begin (2) to a virtual currency wallet designated by the customer. new text end new text begin (c) A virtual currency kiosk operator must make a payout under this subdivision in the manner elected by a new or existing customer under paragraph (b). If a new or existing customer elects the option under paragraph (b), clause (2), the virtual currency kiosk operator must transfer the full amount of the money and virtual currency being held for or owed to the new or existing customer to the customer's designated virtual currency wallet within 30 days of the date the customer submits the payout request. new text end new text begin (d) A payout to a new or existing customer must be recorded on the applicable blockchain. A virtual currency kiosk operator must retain proof that a transfer was made and must make retained proof available to the commissioner upon request. new text end new text begin Subd. 3. new text end new text begin Exception. new text end new text begin A virtual currency kiosk operator is not required to make a payout under subdivision 2 if the operator maintains, at all times, other lawful means for new and existing customers to access, transfer, redeem, or otherwise transact a customer's money or virtual currency that exists as a result of virtual currency kiosk transactions. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2026. new text end Sec. 3. new text begin [58.131] RESIDENTIAL MORTGAGE LOAN SERVICING STANDARDS. 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) "Authorized representative" means a person, including but not limited to an attorney, employee, or agent of a government agency, not-for-profit housing counseling organization, or legal services organization, designated by a borrower in a written authorization signed by the borrower or in any other form of verifiable authorization to share information and communicate with a servicer on behalf of the borrower. new text end new text begin (c) "Clearly and conspicuously" means the statement, representation, or term being disclosed is displayed in a size, color, and contrast and is presented in a manner that makes the statement readily noticed and understood by an ordinary consumer. new text end new text begin (d) "Government-sponsored enterprise" means the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. new text end new text begin (e) "Real Estate Settlement Procedures Act" or "RESPA" means the Real Estate Settlement Procedures Act of 1974, United States Code, title 12, section 2601, et seq., and regulations adopted pursuant to RESPA, also known as Regulation X, Code of Federal Regulations, title 12, part 1024, as amended. new text end new text begin (f) "Third-party provider" means any person or entity retained by or on behalf of the servicer, including but not limited to foreclosure firms, law firms, foreclosure trustees, other agents, independent contractors, subsidiaries, and affiliates, that provides insurance, foreclosure, bankruptcy, mortgage servicing including loss mitigation, or other products or services in connection with servicing a mortgage loan. new text end new text begin (g) "Transferee servicer" means a servicer that has agreed to obtain the right to service a mortgage loan pursuant to an agreement or understanding. new text end new text begin (h) "Transferor servicer" means a servicer that has agreed to, or been informed that the servicer must, transfer the right to service a mortgage loan to another servicer. new text end new text begin Subd. 2. new text end new text begin General requirements. new text end new text begin (a) A violation of an applicable state law or administrative rule, a federal law or regulation, or a state or federal program is a violation of this section. new text end new text begin (b) In addition to complying with this section, a servicer must comply with: new text end new text begin (1) other applicable sections of this chapter; new text end new text begin (2) other applicable state law, including but not limited to chapters 46A, 47, 580, 581, and 582; new text end new text begin (3) applicable sections of RESPA; new text end new text begin (4) the federal Servicemembers Civil Relief Act, United States Code, title 50, section 501, et seq.; and new text end new text begin (5) other applicable federal laws and implementing regulations, as amended, including but not limited to: new text end new text begin (i) the Gramm-Leach-Bliley Act, Public Law 106-102; new text end new text begin (ii) the Truth-in-Lending Act, United States Code, title 15, section 1601, et seq.; and new text end new text begin (iii) the Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x. new text end new text begin Subd. 3. new text end new text begin Servicing and ownership transfers or sales. new text end new text begin (a) When acquiring servicing rights from a transferor servicer, a transferee servicer must: new text end new text begin (1) continue processing loan modification requests and honoring trial and permanent modifications; and new text end new text begin (2) designate the homeowner as a third-party intended beneficiary in any subsequent contract for transfer or sale, unless doing so violates another state law or a government-sponsored enterprise's modification program requirements. new text end new text begin (b) When transferring or selling loan servicing with pending modification requests or trial or permanent modifications, a transferor servicer must: new text end new text begin (1) inform the transferee servicer if a loan modification is pending; new text end new text begin (2) obligate the transferee servicer to (i) accept and continue processing loan modification requests, and (ii) honor trial and permanent loan modification agreements; and new text end new text begin (3) designate the homeowner as a third-party intended beneficiary in any contract for transfer or sale, unless doing so violates state law or a government-sponsored enterprise's modification program requirements. new text end new text begin Subd. 4. new text end new text begin Payment processing and fees. new text end new text begin (a) A servicer must comply with section 47.59, subdivision 9a, regarding prompt crediting of payments, if the borrower has provided sufficient information to credit the account. A servicer must apply the payment as specified in the loan documents. new text end new text begin (b) A servicer may enter into a written contract with the borrower that allows the servicer to hold certain types of money, or money sent by a certain method, for a period of time until the money is available before crediting the money to the borrower's account. new text end new text begin (c) A servicer must notify the borrower if a payment is received, not credited, and placed in a suspense account. The servicer must send the notification to the borrower within ten business days by United States mail to the borrower's last known address. The notification must identify (1) the reason the payment was not credited or treated as credited to the account, and (2) any actions the borrower must take to make the residential mortgage loan current. If a servicer provides monthly or more frequent statements that include the information under this paragraph, the servicer is not required to provide the information in an additional notice. If this paragraph conflicts with the requirements of an applicable bankruptcy court order, compliance with the bankruptcy court requirements constitutes compliance with this paragraph or paragraph (d). new text end new text begin (d) When a suspense account contains enough money to make a full payment, a servicer must apply the payment to the mortgage on the date the full amount became available in the suspense account. new text end new text begin (e) A servicer must assess an incurred fee to a borrower's account within 45 days of the date the fee was incurred. A servicer must clearly and conspicuously explain the fee in a statement mailed to the borrower at the borrower's last known address no more than 30 days after the date the fee is assessed. If a servicer provides monthly or more frequent statements that include the information under this paragraph, the servicer is not required to provide the information in an additional notice. new text end new text begin Subd. 5. new text end new text begin Contracting with third-party providers. new text end new text begin A servicer must adopt written policies and procedures governing the oversight of third-party providers, including but not limited to foreclosure trustees, foreclosure firms, subservicers, agents, subsidiaries, and affiliates. A servicer must maintain the policies and procedures as part of the servicer's books and records and must provide the policies and procedures to the commissioner upon request. new text end new text begin Subd. 6. new text end new text begin Maintenance of the escrow account. new text end new text begin (a) If a servicer collects escrow amounts held for the borrower to pay insurance, taxes, or other charges with respect to the property, the servicer must collect and make all payments from the escrow account. To the extent the servicer has control, the servicer must ensure that no late penalties are assessed or other negative consequences result for the borrower. new text end new text begin (b) At least annually or upon the borrower's request, a servicer must inform the borrower in writing regarding the amount of reserve required in an escrow account. The notice must advise the borrower of any fees the borrower incurs (1) for not maintaining the reserve amount, or (2) if the servicer advances escrow amounts on the borrower's behalf and subsequently collects the escrow amounts from the borrower. new text end new text begin (c) A servicer may enter into a written agreement with the borrower that specifies the servicer is not required to make escrow payments unless money is available in the escrow account. An agreement under this paragraph must include language that provides notice to the borrower that the borrower is responsible to pay the escrow amounts if an amount sufficient to pay the escrow amounts is not maintained in the escrow account. new text end new text begin (d) A servicer must notify the borrower within ten business days of the date a change is made to the escrow account that modifies the borrower's escrow payment amount. A change requiring notification includes but is not limited to hazard insurance premiums, a reduction in the required reserve amount for the account, or a change in the property's tax assessment. A change resulting from a borrower's regularly scheduled payment is not a change requiring notification. new text end new text begin Subd. 7. new text end new text begin Borrower requests for information. new text end new text begin (a) A servicer must make a reasonable attempt to comply with a borrower's request for information, including a request for information about loss mitigation, regarding the residential mortgage loan account and must respond to a dispute initiated by the borrower about the loan account. A reasonable attempt under this subdivision includes but is not limited to: new text end new text begin (1) maintaining written or electronic records of each written request for information involving the borrower's account until the residential mortgage loan is paid in full, sold, or otherwise satisfied; and new text end new text begin (2) providing a written statement to the borrower within 30 business days of the date a written request is received from the borrower or by following the response timelines provided by a loss mitigation program. A borrower's request must include the borrower's name and account number, if any, a statement that the account is or may be in error, and sufficient detail regarding the information sought by the borrower to permit the servicer to comply. new text end new text begin (b) At a minimum, a servicer must provide the following information in response to a borrower request received under this subdivision: new text end new text begin (1) whether the account is current or, if the account is not current, an explanation regarding the default and the date the account entered default; new text end new text begin (2) the current balance due on the residential mortgage loan, including the principal due; the amount of money, if any, held in a suspense account; the amount of the escrow balance known to the servicer, if any; and whether any escrow deficiencies or shortages are known to the servicer; new text end new text begin (3) the identity, address, and other relevant information about the current holder, owner, or assignee of the residential mortgage loan; and new text end new text begin (4) the telephone number and mailing address of an individual servicer representative with the information and authority to answer questions and resolve disputes. new text end new text begin (c) A servicer must promptly correct errors and refund fees assessed to the borrower resulting from an error the servicer made. new text end new text begin (d) If the content of a servicer's response meets the requirements under RESPA for a response to a qualified written request, the servicer has complied with this subdivision. A servicer deemed compliant with this subdivision under this paragraph must separately comply with paragraph (c). new text end new text begin (e) In addition to the statement described under paragraph (a), clause (2), a borrower may request more detailed information from a servicer. A servicer that receives a request under this paragraph must provide the information to the borrower within 15 business days of the date a written request from the borrower is received. A borrower's request must include the borrower's name and account number, if any, a statement that the account is or may be in error, and sufficient detail to the servicer regarding information sought by the borrower. If requested by the borrower, a statement provided under this paragraph must also include: new text end new text begin (1) a copy of the original note or, if the original note is unavailable, an affidavit of lost note that includes all endorsements; and new text end new text begin (2) a statement that (i) identifies and itemizes all fees and charges assessed under the loan servicing transaction, (ii) provides a full payment history that identifies in a clear and conspicuous manner all the debits, credits, applications, and disbursements of all payments received from or for the benefit of the borrower, and (iii) identifies other activity on the residential mortgage loan, including escrow account activity and suspense account activity, if any. new text end new text begin (f) For purposes of a borrower request made under paragraph (e) the account history period must cover, at a minimum, the two-year period before the date the request for information is received. If the servicer has not serviced the residential mortgage loan for the entire two-year period, the servicer must provide the information back to the date on which the servicer began servicing the residential mortgage loan and must identify the previous servicer, if known. If a servicer claims delinquent or outstanding sums are owed on the residential mortgage loan prior to the two-year period or the period during which the servicer has serviced the residential mortgage loan, the servicer must provide an account history beginning with the month that the servicer claims any outstanding sums are owed on the residential mortgage loan up to the date the request for the information is received. new text end new text begin (g) If the borrower requests a statement under paragraph (e), a servicer must provide the statement free of charge. A borrower is entitled to only one free statement annually under this paragraph. If a borrower requests more than one statement annually, a servicer may charge $30 for the second and each subsequent statement. new text end new text begin Subd. 8. new text end new text begin Borrower complaints and inquiries. new text end new text begin (a) A servicer must establish and maintain: new text end new text begin (1) procedures and systems to respond to and resolve borrower complaints and inquiries in a manner that complies with this section; new text end new text begin (2) a customer service department staffed by trained personnel to whom a borrower may direct complaints and inquiries; and new text end new text begin (3) a toll-free telephone number or collect calling service that enables a borrower to speak, during regular business hours, with a live person trained to answer inquiries and instruct borrowers how to file written complaints. new text end new text begin (b) Each welcome packet, periodic statement, including as applicable either the monthly mortgage statement or annual coupon book that is provided to a borrower, and website maintained by a servicer must clearly and conspicuously state: new text end new text begin (1) an address to which borrowers may direct complaints and inquiries; new text end new text begin (2) the toll-free telephone number or collect calling services provided by the servicer; new text end new text begin (3) whether the servicer is licensed with the commissioner; and new text end new text begin (4) that a borrower may file a complaint and obtain information about the servicer by contacting the Department of Commerce. The information provided under this clause must include the department's current telephone contact information and website. new text end new text begin (c) A servicer must establish and maintain a process that enables borrowers to escalate complaints or pending loss mitigation matters for a supervisory-level review. new text end new text begin Subd. 9. new text end new text begin Servicing prohibitions; fair dealing duty. new text end new text begin (a) In addition to the prohibitions and standards of conduct under sections 58.12, subdivision 1, paragraph (b), and 58.13, subdivision 1, a servicer is prohibited from: new text end new text begin (1) engaging in unfair, deceptive, or abusive business practices, or misrepresenting or omitting any material information, in connection with servicing a mortgage loan, including but not limited to misrepresenting the amount, nature, or terms of a fee, payment due, or payment claimed due on the loan, the servicing agreement's terms and conditions, or the borrower's obligations under the loan; new text end new text begin (2) requiring money to be remitted by a method that is more costly to the borrower than a bank, certified check, or attorney's check from an attorney's account; or new text end new text begin (3) refusing to communicate with the borrower's authorized representative if the authorized representative provides the servicer with a written authorization, including by electronic transmission, signed by the borrower that affirms the authorized representative may act on behalf of the borrower. A servicer may adopt procedures, excluding collecting the representative's Social Security number, that are reasonably related to verifying that the representative is in fact authorized to act on behalf of the borrower. new text end new text begin (b) A servicer must act in good faith and deal fairly in the servicer's dealings with a borrower in connection with servicing a borrower's mortgage loan. For purposes of this paragraph, acting in good faith and dealing fairly includes but is not limited to the duty to: new text end new text begin (1) safeguard and account for any payment made by the borrower or any money belonging to the borrower; new text end new text begin (2) follow reasonable and lawful instructions from the borrower that are consistent with the underlying note and mortgage; new text end new text begin (3) act with reasonable skill, care, and diligence; new text end new text begin (4) consider alternatives to foreclosure when a borrower (i) demonstrates that the borrower is in imminent risk of delinquency on the mortgage loan as a result of a financial hardship, or (ii) has experienced a financial hardship and is unable to maintain the payment at the current payment amount required under the mortgage loan or make delinquent payments; and new text end new text begin (5) structure loan modifications to result in payments that are reasonably affordable and sustainable for the borrower at the time the modification is made. new text end new text begin Subd. 10. new text end new text begin Notices; mailings; evidence of receipt. new text end new text begin (a) A notification, mailing, or other correspondence from a mortgage servicer or third-party provider to a borrower must be provided via first class mail and email if the borrower has provided an email address for notice or communication purposes. new text end new text begin (b) A servicer must provide a mailing address, facsimile number, email address, and a method to facilitate file transfers via the Internet to produce documents requested from the borrower. An option to transfer files via the Internet must allow both the borrower and servicer to view the documents sent and confirm the date the documents were sent for 60 months after the date the documents were produced to the servicer. new text end new text begin (c) A servicer must provide a detailed description of all items received and the items' expiration dates from a borrower within five business days of the date an item was received via any medium described under this subdivision. new text end new text begin (d) A servicer is prohibited from rejecting documentation from a borrower or potential borrower as incomplete without providing the borrower with details regarding which specific portion of the documentation is incomplete. new text end Sec. 4. Minnesota Statutes 2024, section 58.14, subdivision 3, is amended to read: Subd. 3. Documentation and resolution of complaints. A licensee or exempt person must investigate and attempt to resolve complaints made regarding acts or practices subject to the provisions of this chapter. new text begin A servicer must comply with section 58.131, subdivisions 6 and 7. new text end If a complaint is received in writing, the licensee or exempt person must maintain a file containing all materials relating to the complaint and subsequent investigation for a period of 60 months. Sec. 5. Minnesota Statutes 2024, section 58.14, subdivision 4, is amended to read: Subd. 4. Trust account records for mortgage originators. A residential mortgage originator new text begin or servicer new text end shall keep and maintain for 60 months a record of all trust funds, sufficient to identify the transaction, date and source of receipt, and date and identification of disbursement. Sec. 6. Minnesota Statutes 2024, section 58.14, subdivision 5, is amended to read: Subd. 5. Record retention. A licensee or exempt person must keep and maintain for 60 months the business records, including new text begin email communications, telephone recordings, incomplete documentation, and new text end advertisements, regarding residential mortgage loans applied for, originated, or serviced in the course of its business. Sec. 7. Minnesota Statutes 2024, section 58.14, is amended by adding a subdivision to read: new text begin Subd. 6. new text end new text begin Telephone recordings. new text end new text begin A person acting as a residential mortgage loan servicer that services at least 500 residential mortgage loans secured by property in Minnesota must: new text end new text begin (1) record a telephone conversation with a borrower and a borrower's representatives; and new text end new text begin (2) maintain the recording of the conversation for 60 months after the date the recording is made, as provided under subdivision 5. new text end Sec. 8. Minnesota Statutes 2024, section 58.18, subdivision 4, is amended to read: Subd. 4. Exemption. This section does not apply to a residential mortgage loan originated by a federal or state chartered bank, savings bank, or credit union new text begin , unless the residential mortgage loan originated by a federal or state chartered bank, savings bank, or credit union is serviced by a residential mortgage servicer, as defined under section 58.02, subdivision 20 new text end . Sec. 9. Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to read: new text begin Subd. 4a. new text end new text begin Income-driven repayment program. new text end new text begin "Income-driven repayment program" means the Income-Contingent Repayment Plan, the Income-Based Repayment Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn Plan, the Revised Pay As You Earn Plan, and any other state, federal, or private student loan repayment plan that is calculated based on a borrower's income and for which a borrower's income may include the borrower's household income for purposes of evaluating eligibility under section 58B.06, subdivision 5. new text end Sec. 10. Minnesota Statutes 2025 Supplement, section 58B.02, subdivision 8a, is amended to read: Subd. 8a. Lender. "Lender" means an entity engaged in the business of securing, making, or extending student loans. Lender does not include deleted text begin , to the extent that state regulation is preempted by federal law deleted text end : (1) a bank, savings banks, savings and loan association, or credit union; (2) a wholly owned subsidiary of a bank or credit union; (3) an operating subsidiary where each owner is wholly owned by the same bank or credit union; (4) the United States government, through Title IV of the Higher Education Act of 1965, as amended, and administered by the United States Department of Education; (5) an agency, instrumentality, or political subdivision of Minnesota; (6) a regulated lender organized under chapter 56, except that a regulated lender must file the annual report required for lenders under section 58B.03, subdivision 10 ; or (7) a person who is not in the business of making student loans and who makes no more than three student loans, with the person's own funds, during any 12-month period. Sec. 11. Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to read: new text begin Subd. 10. new text end new text begin Written communication. new text end new text begin "Written communication" means a written correspondence that is made by a borrower and is transmitted by mail, facsimile, or electronically through an email address or Internet website that the student loan servicer designates to receive communications from a borrower and enables the student loan servicer to identify the borrower's name and account. Written communication does not include a notice on a payment medium supplied by a student loan servicer. new text end Sec. 12. Minnesota Statutes 2024, section 58B.03, subdivision 10, is amended to read: Subd. 10. Annual report. (a) deleted text begin Beginning deleted text end new text begin On or before new text end March 15 deleted text begin , 2025 deleted text end new text begin each year new text end , a student loan lender that secures, makes, or extends student loans in Minnesota must new text begin submit a new text end report to the commissioner on the form the commissioner provides new text begin . The report must include for the previous calendar year new text end : (1) a list of all schools attended by borrowers who received a student loan from the student loan lender 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; (2) the total outstanding dollar amount owed by borrowers residing in Minnesota who received student loans from the student loan lender; (3) the total number of student loans owed by borrowers residing in Minnesota who received student loans from the student loan lender; (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); (5) the total dollar amount of student loans provided by the student loan lender to borrowers who resided in Minnesota in the prior calendar year; (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; (7) the rate of default for borrowers residing in Minnesota who obtained student loans from the student loan lender, if applicable; (8) the rate of default for borrowers residing in Minnesota who obtained student loans from the student loan lender associated with each school identified under clause (1), if applicable; (9) the range of initial interest rates for student loans provided by the student loan lender to borrowers who resided in Minnesota in the prior calendar year; (10) the total number of borrowers who received student loans identified under clause (9), and the percentage of borrowers who received each rate identified under clause (9); (11) the total dollar amount and number of student loans provided in the prior calendar year by the student loan lender to borrowers who resided in Minnesota at the time of the transaction and had a cosigner for the student loans; (12) the total dollar amount and number of student loans provided by the student loan lender to borrowers residing in Minnesota used to refinance a prior student loan or federal student loan in the prior calendar year; (13) the total dollar amount and number of student loans for which the student loan lender had sued to collect from a borrower residing in Minnesota in the prior calendar year; (14) a copy of any model promissory note, agreement, contract, or other instrument used by the student loan lender in the previous year to substantiate that a borrower owes a new debt to the student loan lender; and (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. (b) In addition to annual reports, the commissioner may require additional regular or special reports as the commissioner deems necessary to properly supervise student loan lenders under this chapter. (c) The commissioner of commerce must share data collected under this subdivision with the commissioner of higher education. Sec. 13. Minnesota Statutes 2024, section 58B.03, subdivision 11, is amended to read: Subd. 11. Annual report from student loan servicers. (a) deleted text begin Beginning deleted text end new text begin On or before new text end March 15 deleted text begin , 2025 deleted text end new text begin each year new text end , a student loan servicer that services student loans in Minnesota must new text begin submit a new text end report to the commissioner on the form the commissioner provides. The report must include new text begin for the previous calendar year new text end : (1) a list of any outstanding student loans owed by borrowers who reside in Minnesota that are serviced by the student loan servicer; (2) the total outstanding dollar amount and number of student loans that are serviced by the student loan servicer and owed by borrowers who reside in Minnesota; (3) the total dollar amount and number of student loans owed by borrowers who resided in Minnesota that were serviced by the student loan servicer in the prior calendar year; (4) the rate of default for student loans owed by borrowers who reside in Minnesota that are serviced by the student loan servicer, if applicable; (5) the range of interest rates for student loans serviced by the student loan servicers to borrowers who resided in Minnesota in the prior calendar year; (6) the total outstanding dollar amount and number of student loans that were serviced by the student loan servicer and owed by borrowers residing in Minnesota to refinance a prior student loan or federal student loan; and (7) 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. (b) In addition to annual reports, the commissioner may require additional regular or special reports as the commissioner deems necessary to properly supervise student loan servicers under this chapter. (c) The commissioner of commerce must share data collected under this subdivision with the commissioner of higher education. Sec. 14. Minnesota Statutes 2024, 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 deleted text begin : deleted text end new text begin protect the borrower from negative consequences resulting from the sale, assignment, transfer, system conversion, or payment the borrower makes to the original loan servicer consistent with the original student loan servicer's policy. For purposes of this paragraph, "negative consequences" includes but is not limited to: new text end (1) deleted text begin 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 or are authorized under the student loan contract, 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; and deleted text end new text begin negative credit reporting; new text end (2) deleted text begin 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). deleted text end new text begin imposing late fees that are not required by the promissory note; or new text end new text begin (3) eligibility loss or denial for a benefit or protection established under federal law or included in the loan contract. new text end (b) deleted text begin 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. deleted text end new text begin If a borrower's student loan servicer changes pursuant to the sale, assignment, or transfer of the servicing, the original and new student loan servicer must provide a written notice to the borrower subject to the transfer. The notice must be provided no less than 15 calendar days before the transfer's effective date and must include: new text end new text begin (1) the sale, assignment, or transfer's effective date; new text end new text begin (2) the name, address, website, and toll-free telephone number for the original student loan servicer's designated point of contact for the borrower to contact in order to obtain answers to servicing inquiries; new text end new text begin (3) the name, address, website, and toll-free telephone number for the new student loan servicer's designated point of contact for the borrower to contact in order to obtain answers to servicing inquiries; new text end new text begin (4) the date the original student loan servicer stops accepting payments on the borrower's student loan; new text end new text begin (5) the date the new student loan servicer begins accepting payments on the borrower's student loan; new text end new text begin (6) information that indicates whether the borrower's authorization for recurring electronic funds transfers, if applicable, is transferred to the new servicer. If a recurring electronic funds transfer is not transferred, the transferee must provide information that explains how the borrower may establish a new recurring electronic funds transfer with the new servicer; and new text end new text begin (7) a statement that indicates the current loan balance, including the current unpaid amount of principal, interest, and fees. new text end (c) deleted text begin 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. deleted text end new text begin If a borrower's student loan servicer changes pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer must ensure all necessary information regarding a borrower, a borrower's account, and a borrower's student loan accompanies a loan when the loan is transferred to a new student loan servicer. The transfer of necessary information must occur within 45 calendar days of the sale, assignment, or transfer's effective date. For purposes of this subdivision, "necessary information" includes but is not limited to: new text end new text begin (1) a schedule of all transactions credited or debited to the student loan account; new text end new text begin (2) a copy of the promissory note for the student loan; new text end new text begin (3) notes created by the student loan servicer's personnel that reflect communications with the borrower regarding the student loan account; new text end new text begin (4) a report of the data fields relating to the borrower's student loan account created by the student loan servicer's electronic systems in connection with servicing practices; new text end new text begin (5) copies or electronic records of information or documents the borrower provided to the student loan servicer; new text end new text begin (6) if applicable, usable data fields that contain information necessary to assess the borrower's eligibility for forgiveness, including public service loan forgiveness; and new text end new text begin (7) information necessary to compile a payment history. new text end (d) A new student loan servicer must adopt deleted text begin policies and procedures to verify that the original student loan servicer has met the requirements of paragraph (a) deleted text end new text begin and implement policies and procedures to verify that the original student loan servicer meets the requirements of paragraph (c) new text end . Sec. 15. Minnesota Statutes 2024, section 58B.06, subdivision 6, is amended to read: Subd. 6. Records. A student loan servicer must maintain deleted text begin adequate deleted text end new text begin complete and accurate new text end records new text begin , including new text end of new text begin all written communication and telephone recordings, for new text end each student loan new text begin . The records must be maintained new text end for deleted text begin not less than deleted text end new text begin at least new text end two years following the final payment on the student loan or the sale, assignment, or transfer of the servicing. Sec. 16. Minnesota Statutes 2024, section 72A.18, subdivision 2, is amended to read: Subd. 2. Person. "Person" means any individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, or any other legal entity, engaged in the business of insurance, including an agent, a solicitor, deleted text begin or deleted text end an adjuster deleted text begin and deleted text end new text begin , or an insurance lead generator. new text end For the purposes of sections 72A.31 and 72A.32 "person" shall in addition mean any person, firm or corporation even though not engaged in the business of insurance. Sec. 17. Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to read: new text begin Subd. 3. new text end new text begin Insurance lead generator. new text end new text begin (a) "Insurance lead generator" means a person who uses a lead-generating device to: new text end new text begin (1) publicize the availability of what is or what purports to be an insurance product or service that the person is not licensed to sell directly to a customer; new text end new text begin (2) identify a customer who may be interested in learning more about an insurance product; or new text end new text begin (3) sell or transmit customer information to an insurer or producer for the purposes of subsequent contact or sales activity. new text end new text begin (b) For the purposes of sections 72A.17 to 72A.32, insurance lead generator does not include an insurer, as defined under section 72A.201, subdivision 3, clause (9), or an insurance producer, as defined under section 60K.31, subdivision 6. new text end Sec. 18. Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to read: new text begin Subd. 4. new text end new text begin Lead-generating device. new text end new text begin "Lead-generating device" means communication directed to the public that, regardless of the communication's form, content, or stated purpose, is intended to result in compiling or qualifying a list containing names and other personal information to solicit Minnesota residents to purchase what is or what purports to be an insurance product or service. new text end Sec. 19. Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to read: new text begin Subd. 5. new text end new text begin Recording. new text end new text begin "Recording" means documenting a sale or verifying a call, including a virtual technology call, to market an insurance product or service. new text end Sec. 20. Minnesota Statutes 2024, section 72A.20, subdivision 2, is amended to read: Subd. 2. False information and advertising generally. Making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, new text begin email, Internet advertisement or posting, new text end or other publication, or in the form of a notice, circular, pamphlet, letter, new text begin electronic posting of any kind, new text end or poster, or over any radio station, new text begin or using the Internet or other electronic means, new text end or in any other way, an advertisement, announcement, or statement, containing any assertion, representation, or statement with respect to the business of insurance, or with respect to any person in the conduct of the person's insurance business, which is untrue, deceptive, or misleading, shall constitute an unfair method of competition and an unfair and deceptive act or practice. Sec. 21. Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to read: new text begin Subd. 2a. new text end new text begin Failure to maintain certain records. new text end new text begin An insurance lead generator must maintain books, records, documents, and other business records in a manner that ensures data regarding complaints and marketing are accessible and retrievable for examination by the insurance commissioner. An insurance lead generator must maintain data under this subdivision for at least the current calendar year and the two preceding years. new text end Sec. 22. Minnesota Statutes 2024, section 80G.01, subdivision 5a, is amended to read: Subd. 5a. Minnesota transaction. "Minnesota transaction" means a bullion product transaction conducted: (1) by a dealer deleted text begin that is incorporated, registered, domiciled, or otherwise deleted text end located in Minnesota; (2) by a dealer representative at a location in Minnesota; (3) between a dealer and a consumer deleted text begin who lives deleted text end in Minnesota; or (4) between a dealer and a Minnesota consumer when the transaction involves: (i) delivering or shipping a bullion product to an address in Minnesota; new text begin or new text end deleted text begin (ii) delivering to or shipping from a precious metal depository on behalf of a Minnesota resident; or deleted text end deleted text begin (iii) deleted text end new text begin (ii) new text end making payment to a consumer or receiving a payment from a consumer at an address in Minnesota, unless the transaction occurs when the consumer is deleted text begin at a business location deleted text end outside of Minnesota. Sec. 23. new text begin [82B.081] NOTICE TO COMMISSIONER. new text end new text begin Subdivision 1. new text end new text begin Change of application information. new text end new text begin A licensee must provide notice to the commissioner if the information in the license application filed with the commissioner changes. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the change occurs. For purposes of this subdivision, an information change requiring notice includes but is not limited to a change with respect to the licensee's personal name, trade name, address, or business location. new text end new text begin Subd. 2. new text end new text begin Civil judgment. new text end new text begin The licensee must notify the commissioner of a final adverse decision or court order, whether or not the decision or order is appealed, resulting from a proceeding in which the licensee was named as a defendant and the final adverse decision relates to fraud or misrepresentation. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the final adverse decision or court order is issued. new text end new text begin Subd. 3. new text end new text begin Disciplinary action. new text end new text begin The licensee must notify the commissioner of a disciplinary action involving the licensee, including but not limited to a suspension or revocation of the licensee's real property appraiser license or another occupational license issued by Minnesota or another jurisdiction. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the disciplinary action occurs. new text end new text begin Subd. 4. new text end new text begin Criminal offense. new text end new text begin The licensee must notify the commissioner if the licensee is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a similar violation of a real property appraiser licensing law. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the charge, judgment, or plea occurs. new text end Sec. 24. new text begin [82C.031] NOTICE TO COMMISSIONER. new text end new text begin Subdivision 1. new text end new text begin Change of application information. new text end new text begin A licensee must provide notice to the commissioner if the information in the license application filed with the commissioner changes. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the change occurs. For purposes of this subdivision, an information change requiring notice includes but is not limited to a change with respect to the licensee's personal name, trade name, address, or business location. new text end new text begin Subd. 2. new text end new text begin Civil judgment. new text end new text begin The licensee must notify the commissioner of a final adverse decision or court order, whether or not the decision or order is appealed, resulting from a proceeding in which the licensee was named as a defendant and the final adverse decision relates to fraud or misrepresentation. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the final adverse decision or court order is issued. new text end new text begin Subd. 3. new text end new text begin Disciplinary action. new text end new text begin The licensee must notify the commissioner of a disciplinary action involving the licensee, including but not limited to a suspension or revocation of the licensee's real property appraisal management company license issued by another jurisdiction. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the disciplinary action occurs. new text end new text begin Subd. 4. new text end new text begin Criminal offense. new text end new text begin The licensee must notify the commissioner if the licensee is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a similar violation of a real property appraisal management company licensing law. The notice must be provided in writing or another format prescribed by the commissioner within ten days of the date the charge, judgment, or plea occurs. new text end Sec. 25. Minnesota Statutes 2024, section 325E.21, subdivision 1b, is amended to read: Subd. 1b. Purchase or acquisition record required. (a) Every scrap metal dealer, including an agent, employee, or representative of the dealer, shall create a record written in English, using an electronic record program at the time of each purchase or acquisition of scrap metal or a motor vehicle. The record must include: (1) a complete and accurate account or description, including the weight if customarily purchased by weight, of the scrap metal or motor vehicle purchased or acquired; (2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased or acquired and a unique transaction identifier; (3) a photocopy or electronic scan of the seller's new text begin : new text end new text begin (i) new text end proof of identification including the identification number new text begin if the seller is an individual; or new text end new text begin (ii) certificate of authority to transact business in Minnesota and business tax identification number, if the seller is an entity new text end ; (4) the amount paid and the number of the check or electronic transfer used to purchase or acquire the scrap metal or motor vehicle; (5) the license plate number and description of the vehicle used by the person when delivering the scrap metal or motor vehicle, including the vehicle make and model, and any identifying marks on the vehicle, such as a business name, decals, or markings, if applicable; (6) a statement signed by the seller, under penalty of perjury as provided in section 609.48 , attesting that the scrap metal or motor vehicle is not stolen and is free of any liens or encumbrances and the seller has the right to sell it; (7) a copy of the receipt, which must include at least the following information: the name and address of the dealer, the date and time the scrap metal or motor vehicle was received by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount paid for the scrap metal or motor vehicle; (8) the identity or identifier of the employee completing the transaction; and (9) if the seller is attempting to sell copper metal, a photocopy or electronic scan of the seller's: (i) current license to sell scrap metal copper issued by the commissioner under subdivision 2c; or (ii) the documentation used to support the seller being deemed to hold a license to sell scrap metal copper under subdivision 2c, paragraph (f), clauses (1) to (3). (b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall at all reasonable times be open to the inspection of any properly identified law enforcement officer. (c) Except for the purchase or acquisition of detached catalytic converters or motor vehicles, no record is required for property purchased or acquired from merchants, manufacturers, salvage pools, insurance companies, rental car companies, financial institutions, charities, dealers licensed under section 168.27 , or wholesale dealers, having an established place of business, or of any goods purchased or acquired at open sale from any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained and kept by the person, which must be shown upon demand to any properly identified law enforcement officer. (d) The dealer must provide a copy of the receipt required under paragraph (a), clause (7), to the seller in every transaction. (e) The commissioner of public safety and law enforcement agencies in the jurisdiction where a dealer is located may conduct inspections and audits as necessary to ensure compliance, refer violations to the city or county attorney for criminal prosecution, and notify the registrar of motor vehicles. (f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent, employee, or representative may not disclose personal information concerning a customer without the customer's consent unless the disclosure is required by law or made in response to a request from a law enforcement agency. A scrap metal dealer must implement reasonable safeguards to protect the security of the personal information and prevent unauthorized access to or disclosure of the information. For purposes of this paragraph, "personal information" is any individually identifiable information gathered in connection with a record under paragraph (a). Sec. 26. Minnesota Statutes 2024, section 325E.21, subdivision 2c, is amended to read: Subd. 2c. License required for scrap metal copper sale. (a) Beginning January 1, 2025, a person is prohibited from engaging in the sale of scrap metal copper unless the person has a valid license issued by the commissioner under this subdivision. (b) On the first Friday of the months of April and October of each calendar year, from 8:00 a.m. to 5:00 p.m., a scrap metal dealer may purchase up to $25 of scrap metal copper from individuals who do not have an approved license to sell scrap metal copper under this subdivision. All other requirements of subdivision 1b apply and must be documented by the scrap metal dealer on the dates specified in this paragraph. (c) A seller of scrap metal copper may apply to the commissioner on a form prescribed by the commissioner. new text begin (1) new text end The application form new text begin for an individual new text end must include, at a minimum: deleted text begin (1) deleted text end new text begin (i) new text end the name, permanent address, telephone number, and date of birth of the applicant; and deleted text begin (2) deleted text end new text begin (ii) new text end an acknowledgment that the applicant obtained the copper by lawful means in the regular course of the applicant's business, trade, or authorized construction work. new text begin (2) The application form for an entity must include, at a minimum: new text end new text begin (i) the name, legal entity type, principal business address, telephone number, and date of formation of the entity; and new text end new text begin (ii) an acknowledgment that the applicant obtained the copper by lawful means in the regular course of the applicant's business, trade, or authorized construction work. new text end (d) Each application must be accompanied by a nonrefundable fee of $250. (e) Within 30 days of the date an application is received, the commissioner may require additional information or submissions from an applicant and may obtain any document or information that is reasonably necessary to verify the information contained in the application. Within 90 days after the date a completed application is received, the commissioner must review the application and issue a license if the applicant is deemed qualified under this section. The commissioner may issue a license subject to restrictions or limitations. If the commissioner determines the applicant is not qualified, the commissioner must notify the applicant and must specify the reason for the denial. (f) A person is deemed to hold a license to sell scrap metal copper if the person holds one of the following: (1) a license to perform work pursuant to chapter 326B or section 103I.501 ; (2) a document, certificate, or card of competency issued by a municipality to perform work in a given trade or craft in the building trades. The document, certificate, or card must state that the individual is authorized to sell scrap metal copper. This clause is effective January 1, 2025; or (3) a Section 608 Technician Certification issued by the United States Environmental Protection Agency. (g) A license issued under this subdivision is valid for one year. To renew a license, an applicant must submit a completed renewal application on a form prescribed by the commissioner and a renewal fee of $250. The commissioner may request that a renewal applicant submit additional information to clarify any new information presented in the renewal application. A renewal application submitted after the renewal deadline must be accompanied by a nonrefundable late fee of $500. (h) The commissioner may deny a license renewal under this subdivision if: (1) the commissioner determines that the applicant is in violation of or noncompliant with federal or state law; or (2) the applicant fails to timely submit a renewal application and the information required under this subdivision. (i) In lieu of denying a renewal application under paragraph (g), the commissioner may permit the applicant to submit to the commissioner a corrective action plan to cure or correct deficiencies. (j) The commissioner may suspend, revoke, or place on probation a license issued under this subdivision if: (1) the applicant engages in fraudulent activity that violates state or federal law; (2) the commissioner receives consumer complaints that justify an action under this subdivision to protect the safety and interests of consumers; (3) the applicant fails to pay an application license or renewal fee; or (4) the applicant fails to comply with a requirement established in this subdivision. (k) This subdivision does not apply to transfers by or to an auctioneer who is in compliance with chapter 330 and acting in the person's official role as an auctioneer to facilitate or conduct an auction of scrap metal. (l) The commissioner must enforce this subdivision under chapter 45. Sec. 27. Minnesota Statutes 2024, section 332.32, is amended to read: 332.32 EXCLUSIONS. (a) The term "collection agency" does not include banks when collecting accounts owed to the banks and when the bank will sustain any loss arising from uncollectible accounts, abstract companies doing an escrow business, real estate brokers, public officers, persons acting under order of a court, lawyers, trust companies, insurance companies, credit unions, savings associations, loan or finance companies unless they are engaged in asserting, enforcing or prosecuting unsecured claims which have been purchased from any person, firm, or association when there is recourse to the seller for all or part of the claim if the claim is not collected. (b) The term "collection agency" deleted text begin shall deleted text end new text begin does new text end not include a trade association performing services authorized by section 604.15, subdivision 4a , but the trade association in performing the services may not engage in any conduct that would be prohibited for a collection agency under section 332.37 . new text begin (c) The term "collection agency" does not include a residential mortgage servicer licensed under chapter 58 or a student loan servicer licensed under chapter 58B if the residential mortgage servicer or student loan servicer is engaging in activities subject to licensure under chapter 58 or 58B, as applicable. new text end Sec. 28. new text begin REPEALER. new text end new text begin (a) new text end new text begin Minnesota Statutes 2024, section 53B.75, subdivisions 1, 2, 3, and 5, new text end new text begin are repealed. new text end new text begin (b) new text end new text begin Minnesota Statutes 2024, sections 53B.69, subdivisions 3b and 3c; and 53B.75, subdivision 4, new text end new text begin are repealed. new text end new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective August 1, 2026. Paragraph (b) is effective January 17, 2027. new text end ARTICLE 2 TECHNICAL CHANGES Section 1. Minnesota Statutes 2025 Supplement, section 41A.09, subdivision 2a, is amended to read: Subd. 2a. Definitions. For the purposes of this section, the terms defined in this subdivision have the meanings given them. (a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other renewable resources, including residue and waste generated from the production, processing, and marketing of agricultural products, forest products, and other renewable resources, that: (1) meets all of the specifications in ASTM specification deleted text begin D4806-21a deleted text end new text begin D4806 new text end ; and (2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21. (b) "Ethanol plant" means a plant at which ethanol is produced. (c) "Commissioner" means the commissioner of agriculture. (d) "Rural economic infrastructure" means the development of activities that will enhance the value of agricultural crop or livestock commodities or by-products or waste from farming operations through new and improved value-added conversion processes and technologies, the development of more timely and efficient infrastructure delivery systems, and the enhancement of marketing opportunities. "Rural economic infrastructure" also means land, buildings, structures, fixtures, and improvements located or to be located in Minnesota and used or operated primarily for the processing or the support of production of marketable products from agricultural commodities or wind energy produced in Minnesota. Sec. 2. Minnesota Statutes 2024, section 46.044, subdivision 1, is amended to read: Subdivision 1. Issuance and conditions. An application for a bank charter must be granted if (1) the applicants are of good moral character and financial integrity, (2) there is a reasonable public demand for this bank in this location, (3) the probable volume of business in this location is sufficient to deleted text begin insure deleted text end new text begin ensure new text end and maintain the solvency of the new bank and the solvency of the then existing bank or banks in the locality without endangering the safety of any bank in the locality as a place of deposit of public and private money, (4) the commissioner of commerce is satisfied that the proposed bank will be properly and safely managed, and (5) the commissioner is satisfied that the capital funds required pursuant to section 48.02 are available and the commissioner may accept any reasonable demonstration including subscription agreements supported by current financial statements. If the application does not satisfy the requirements of this subdivision, it must be denied. In case of the denial of the application, the commissioner of commerce shall specify the grounds for the denial. A person aggrieved may obtain judicial review of the determination in accordance with chapter 14. Sec. 3. Minnesota Statutes 2024, section 48.195, is amended to read: 48.195 INTEREST RATES; USURY LIMIT FOR DEPOSITORY INSTITUTIONS. Notwithstanding any law to the contrary, a bank, savings bank, savings association, or credit union organized under the laws of this state, or a national bank or federally chartered savings bank, savings association, or credit union, doing business in this state, may charge on any loan or discount made or upon any note, bill or other evidence of debt, except an extension of credit made pursuant to section 48.185 , interest at a rate of not more than 4-1/2 percent in excess of the discount rate, including any surcharge thereon, on 90-day commercial paper in effect at the new text begin Board of Governors of the new text end Federal Reserve deleted text begin Bank located in the Ninth Federal Reserve District deleted text end new text begin System new text end . Sec. 4. Minnesota Statutes 2024, section 49.37, is amended to read: 49.37 STOCKHOLDERS TO APPROVE; CERTIFICATE OF CONSOLIDATION OR MERGER. new text begin (a) new text end Either before or after the consolidation or merger agreement has been approved by the commissioner of commerce, it must be submitted to the stockholders of each corporation at a meeting thereof called, and it does not become binding upon the corporation until it has been approved at each of the meetings required by this section by the vote or ballot of the stockholders, holding at least a majority of the amount of stock of the respective corporations, or a higher percentage as may be required by the certificate of incorporation of the corporations. Proof of the holding of these meetings and the results thereof must be submitted to the commissioner of commerce. new text begin (b) new text end After the agreement called for by sections 49.33 to 49.41 has been approved by the stockholders of the respective corporations and by the commissioner of commerce, the deleted text begin latter shall deleted text end new text begin commissioner of commerce must new text end issue a certificate reciting that the corporations have complied with the provisions of sections 49.34 to 49.41 and declaring the consolidation or merger of these corporations and the name of the consolidated or surviving corporation, the amount of capital stock thereof, the names of the first board of directors, and the place of business of the consolidated or surviving corporation, which must be within the city where any of the constituent corporations have been previously authorized to have their places of business. new text begin (c) new text end Upon the issuing of this certificate deleted text begin and the filing of it for record in the Office of the Secretary of State, deleted text end the incorporation is deemed to be complete in the case of the consolidation, and the assets of the constituent corporations merged into the survivor in the case of a merger, and the consolidated or surviving corporation shall, from the date of this certificate, have the term of corporate existence as may be specified in it, not exceeding the longest unexpired term of any constituent corporation. The certificate of the commissioner of commerce is prima facie evidence that all of the provisions of sections 49.34 to 49.41 have been complied with, and is conclusive evidence of the existence of the consolidated or surviving corporation. Sec. 5. Minnesota Statutes 2024, section 58B.051, is amended to read: 58B.051 REGISTRATION FOR LENDERS. (a) Beginning January 1, 2025, a lender must register with the commissioner as a lender before providing services in Minnesota. A lender must not offer or make a student loan to a resident of Minnesota without first registering with the commissioner as provided in this section. (b) A registration application must include: (1) the lender's name; (2) the lender's address; (3) the names of all officers, directors, owners, or other persons in control of an applicant, as defined in section 58B.02, subdivision 6 ; and (4) any other information the commissioner requires deleted text begin by rule deleted text end . (c) Registration issued or renewed expires December 31 of each year. A lender must renew the lender's registration on an annual basis. (d) The commissioner may adopt and enforce: (1) registration procedures for lenders, which may include using the Nationwide Multistate Licensing System and Registry; (2) nonrefundable registration fees for lenders, which may include fees for using the Nationwide Multistate Licensing System and Registry, to be paid directly by the lender; (3) procedures and nonrefundable fees to renew a lender's registration, which may include fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be paid directly by the lender; and (4) alternate registration procedures and nonrefundable fees for postsecondary education institutions that offer student loans. Sec. 6. Minnesota Statutes 2024, section 60A.13, subdivision 1, is amended to read: Subdivision 1. Annual statements required. Every insurance company, including fraternal benefit societies, and reciprocal exchanges, doing business in this state, shall file with the commissioner deleted text begin , annually, on or before March 1, deleted text end the appropriate verified National Association of Insurance Commissioners' annual statement blank deleted text begin , deleted text end new text begin on or before April 30 for all lines of insurance except health, which must be filed on or before May 31. The National Association of Insurance Commissioners' annual statement blank must be new text end prepared in accordance with the association's instructions handbook and following those accounting procedures and practices prescribed by the association's accounting practices and procedures manual, unless the commissioner requires or finds another method of valuation reasonable under the circumstances. Another method of valuation permitted by the commissioner must be at least as conservative as those prescribed in the association's manual. All companies required to file an annual statement under this subdivision may also be required to file with the commissioner and the National Association of Insurance Commissioners a copy of their annual statement in an electronic form prescribed by the commissioner. All Minnesota domestic insurers required to file annual statements under this subdivision must also file quarterly statements with the commissioner for the first, second, and third calendar quarter on or before 45 days after the end of the applicable quarter, prepared in accordance with the association's instruction handbook. All companies required to file quarterly statements under this subdivision may also be required to file the quarterly statements with the commissioner and the National Association of Insurance Commissioners in an electronic form prescribed by the commissioner. In addition, the commissioner may require the filing of any other information determined to be reasonably necessary for the continual enforcement of these laws. The statement may be limited to the insurer's business and condition in the United States unless the commissioner finds that the business conducted outside the United States may detrimentally affect the interests of policyholders in this state. The statements shall also contain a verified schedule showing all details required by law for assessment and taxation. The statement or schedules shall be in the form and shall contain all matters the commissioner may prescribe, and it may be varied as to different types of insurers so as to elicit a true exhibit of the condition of each insurer. Sec. 7. Minnesota Statutes 2024, section 60A.13, subdivision 6, is amended to read: Subd. 6. Company or agent cannot continue business unless statement is filed. deleted text begin No deleted text end new text begin A new text end company deleted text begin shall transact deleted text end new text begin is prohibited from transacting new text end any new business in this state after deleted text begin May deleted text end new text begin August new text end 31 in any year unless deleted text begin it shall have deleted text end new text begin the company new text end previously transmitted its annual statement to the commissioner and filed a copy of its statement with the National Association of Insurance Commissioners. The commissioner may by order annually require that each insurer pay the required fee to the National Association of Insurance Commissioners for the filing of annual statements, but the fee shall not be more than 50 percent greater than the fee set by the National Association of Insurance Commissioners. Failure to file the annual statement with the commissioner or the National Association of Insurance Commissioners is a violation of section 72A.061, subdivision 1 . The fee shall be based on the relative premium volume of each insurer. Sec. 8. Minnesota Statutes 2024, section 72A.061, subdivision 5, is amended to read: Subd. 5. Extensions. The commissioner may grant an extension of any filing deadline or requirement specified by this section deleted text begin , on receiving, not less than ten days deleted text end new text begin if the commissioner receives a written request for an extension from the company new text end before the date of default deleted text begin , satisfactory evidence of imminent hardship to the company deleted text end . Sec. 9. Minnesota Statutes 2025 Supplement, section 239.761, subdivision 3, is amended to read: Subd. 3. Gasoline. (a) Gasoline that is not blended with biofuel must not be contaminated with water or other impurities and must comply with ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end . Gasoline that is not blended with biofuel must also comply with the volatility requirements in Code of Federal Regulations, title 40, part 1090. (b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, a person responsible for the product: (1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision 4; (2) shall not blend the gasoline with any oxygenate other than biofuel; (3) shall not blend the gasoline with other petroleum products that are not gasoline or biofuel; (4) shall not blend the gasoline with products commonly and commercially known as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline; and (5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive designed to replace tetra-ethyl lead, that is registered by the EPA. Sec. 10. Minnesota Statutes 2025 Supplement, section 239.761, subdivision 4, is amended to read: Subd. 4. Gasoline blended with ethanol; general. (a) Gasoline may be blended with agriculturally derived, denatured ethanol that complies with the requirements of subdivision 5. (b) A gasoline-ethanol blend must: (1) comply with the volatility requirements in Code of Federal Regulations, title 40, part 1090; (2) comply with ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end , or the gasoline base stock from which a gasoline-ethanol blend was produced must comply with ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end ; and (3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred, or otherwise removed from a refinery or terminal. Sec. 11. Minnesota Statutes 2025 Supplement, section 239.761, subdivision 5, is amended to read: Subd. 5. Denatured ethanol. Denatured ethanol that is to be blended with gasoline must be agriculturally derived and must comply with ASTM specification deleted text begin D4806-21a deleted text end new text begin D4806 new text end . This includes the requirement that ethanol may be denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21. Sec. 12. Minnesota Statutes 2025 Supplement, section 239.761, subdivision 6, is amended to read: Subd. 6. Gasoline blended with nonethanol oxygenate. (a) A person responsible for the product shall comply with the following requirements: (1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total, of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any time in this state; and (2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale in this state. (b) The oxygenates prohibited under paragraph (a) are: (1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34 ; (2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18 ; or (3) tertiary amyl methyl ether. (c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end . Nonethanol oxygenates must not be blended into gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery or terminal. Sec. 13. Minnesota Statutes 2024, section 239.761, subdivision 7, is amended to read: Subd. 7. Heating fuel oil. Heating fuel oil must comply with ASTM specification deleted text begin D396-12 deleted text end new text begin D396 new text end . Sec. 14. Minnesota Statutes 2024, section 239.761, subdivision 8, is amended to read: Subd. 8. Diesel fuel oil. (a) When diesel fuel oil is not blended with biodiesel, it must comply with ASTM specification deleted text begin D975-12a deleted text end new text begin D975 new text end . (b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel component must comply with ASTM specification deleted text begin D975-12a deleted text end new text begin D975 new text end and the biodiesel component must comply with ASTM specification deleted text begin D6751-11b deleted text end new text begin D6751 new text end . Sec. 15. Minnesota Statutes 2024, section 239.761, subdivision 9, is amended to read: Subd. 9. Kerosene. Kerosene must comply with ASTM specification deleted text begin D3699-08 deleted text end new text begin D3699 new text end . Sec. 16. Minnesota Statutes 2024, section 239.761, subdivision 10, is amended to read: Subd. 10. Aviation gasoline. Aviation gasoline must comply with ASTM specification deleted text begin D910-11 deleted text end new text begin D910 new text end . Sec. 17. Minnesota Statutes 2024, section 239.761, subdivision 11, is amended to read: Subd. 11. Aviation turbine fuel, jet fuel. Aviation turbine fuel and jet fuel must comply with ASTM specification deleted text begin D1655-12 deleted text end new text begin D1655 new text end . Sec. 18. Minnesota Statutes 2024, section 239.761, subdivision 12, is amended to read: Subd. 12. Gas turbine fuel oil. Fuel oil for use in nonaviation gas turbine engines must comply with ASTM specification deleted text begin D2880-03 deleted text end new text begin D2880 new text end . Sec. 19. Minnesota Statutes 2024, section 239.761, subdivision 13, is amended to read: Subd. 13. E85. A blend of ethanol and gasoline, containing not more than 85 percent ethanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section 296A.01, subdivision 5 , must comply with ASTM specification deleted text begin D5798-11 deleted text end new text begin D5798 new text end . Sec. 20. Minnesota Statutes 2024, section 239.761, subdivision 14, is amended to read: Subd. 14. M85. A blend of methanol and gasoline, containing at least 70 percent methanol and not more than 85 percent methanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section 296A.01, subdivision 5 , must comply with ASTM specification deleted text begin D5797-07 deleted text end new text begin D5797 new text end . Sec. 21. Minnesota Statutes 2024, section 239.761, subdivision 16, is amended to read: Subd. 16. Biodiesel fuel definition. "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible liquid that is derived from agricultural plant oils or animal fats and that meets American Society for Testing and Materials (ASTM) specification deleted text begin D6751-11b deleted text end new text begin D6751 new text end for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels. Sec. 22. Minnesota Statutes 2024, section 239.761, subdivision 17, is amended to read: Subd. 17. Grade 82 unleaded aviation gasoline. Grade 82 unleaded aviation gasoline must comply with ASTM specification deleted text begin D6227-12 deleted text end new text begin D6227 new text end . Sec. 23. Minnesota Statutes 2024, section 239.77, subdivision 1, is amended to read: Subdivision 1. Biodiesel blend and fuel. (a) "Biodiesel blend" is a blend of diesel fuel and biodiesel fuel between six percent and 20 percent for on-road and off-road diesel-fueled vehicle use. Biodiesel blend must comply with ASTM specification deleted text begin D7467-10 deleted text end new text begin D7467 new text end . (b) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural and other plant oils or animal fats and that meets American Society for Testing and Materials specification deleted text begin D6751-11b deleted text end new text begin D6751 new text end for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels. (c) Biodiesel produced from palm oil is not biodiesel fuel for the purposes of this section, unless the palm oil is contained within waste oil and grease collected within the United States or Canada. Sec. 24. Minnesota Statutes 2024, section 296A.01, subdivision 7, is amended to read: Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is used to produce or generate power for propelling internal combustion engine aircraft. Aviation gasoline includes any gasoline: (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation gasoline" that meets specifications in ASTM specification deleted text begin D910-16 deleted text end new text begin D910 new text end or any other ASTM specification as gasoline appropriate for use in producing or generating power for propelling internal combustion engine aircraft; or (2) sold to a dealer of aviation gasoline for dispensing directly into the fuel tank of an aircraft. Sec. 25. Minnesota Statutes 2024, section 296A.01, subdivision 8, is amended to read: Subd. 8. Aviation turbine fuel and jet fuel. "Aviation turbine fuel" and "jet fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the specifications in ASTM specification deleted text begin D1655-12 deleted text end new text begin D1655 new text end . Sec. 26. Minnesota Statutes 2024, section 296A.01, subdivision 14, is amended to read: Subd. 14. Diesel fuel oil. "Diesel fuel oil" means a petroleum distillate or blend of petroleum distillate and residual fuels that is intended for use as a motor fuel in internal combustion diesel engines and that meets ASTM specification deleted text begin D975-11b deleted text end new text begin D975 new text end . Sec. 27. Minnesota Statutes 2024, section 296A.01, subdivision 19, is amended to read: Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally derived denatured ethanol and gasoline or natural gasoline that contains not more than 85 percent ethanol by volume, but at a minimum must contain greater than 50 percent ethanol by volume. For the purposes of this chapter, the energy content of E85 will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification deleted text begin D5798-11 deleted text end new text begin D5798 new text end . Sec. 28. Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 20, is amended to read: Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to be blended with gasoline, has been agriculturally derived, and complies with ASTM specification deleted text begin D4806-21a deleted text end new text begin D4806 new text end . This includes the requirement that ethanol may be denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21. Sec. 29. Minnesota Statutes 2024, section 296A.01, subdivision 22, is amended to read: Subd. 22. Gas turbine fuel oil. "Gas turbine fuel oil" means fuel that contains mixtures of hydrocarbon oils free of inorganic acid and excessive amounts of solid or fibrous foreign matter, intended for use in nonaviation gas turbine engines, and that meets the specifications in ASTM specification deleted text begin D2880-03 deleted text end new text begin D2880 new text end . Sec. 30. Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 23, is amended to read: Subd. 23. Gasoline. (a) "Gasoline" means: (1) all products commonly or commercially known or sold as gasoline regardless of their classification or uses, except casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761, subdivision 3 , must not be blended with gasoline that has been sold, transferred, or otherwise removed from a refinery or terminal; and (2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and commercially used as, a fuel in spark-ignition, internal combustion engines, and that when tested by the Weights and Measures Division meets the specifications in ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end . (b) Gasoline that is not blended with ethanol must not be contaminated with water or other impurities and must comply with both ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end and the volatility requirements in Code of Federal Regulations, title 40, part 1090. (c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, a person responsible for the product: (1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision 24; (2) must not blend the gasoline with any oxygenate other than denatured, agriculturally derived ethanol; (3) must not blend the gasoline with other petroleum products that are not gasoline or denatured, agriculturally derived ethanol; (4) must not blend the gasoline with products commonly and commercially known as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline; and (5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive designed to replace tetra-ethyl lead, that is registered by the EPA. Sec. 31. Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 24, is amended to read: Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that complies with ASTM specification deleted text begin D4814-24a deleted text end new text begin D4814 new text end . Oxygenates, other than denatured ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery or terminal. Sec. 32. Minnesota Statutes 2024, section 296A.01, subdivision 26, is amended to read: Subd. 26. Heating fuel oil. "Heating fuel oil" means a petroleum distillate, blend of petroleum distillates and residuals, or petroleum residual heating fuel that meets the specifications in ASTM specification deleted text begin D396-12 deleted text end new text begin D396 new text end . Sec. 33. Minnesota Statutes 2024, section 296A.01, subdivision 28, is amended to read: Subd. 28. Kerosene. "Kerosene" means a refined petroleum distillate consisting of a homogeneous mixture of hydrocarbons essentially free of water, inorganic acidic and basic compounds, and excessive amounts of particulate contaminants and that meets the specifications in ASTM specification deleted text begin D3699-08 deleted text end new text begin D3699 new text end . Sec. 34. Minnesota Statutes 2024, section 296A.01, subdivision 35, is amended to read: Subd. 35. M85. "M85" means a petroleum product that is a liquid fuel blend of methanol and gasoline that contains at least 70 percent methanol and not more than 85 percent methanol by volume. For the purposes of this chapter, the energy content of M85 will be considered to be 65,000 BTUs per gallon. M85 produced for use as a motor fuel in alternative fuel vehicles, as defined in subdivision 5, must comply with ASTM specification deleted text begin D5797-07 deleted text end new text begin D5797 new text end . Sec. 35. new text begin REPEALER. new text end new text begin Minnesota Statutes 2024, section 48.158, new text end new text begin is repealed. new text end ARTICLE 3 SECURITIES Section 1. Minnesota Statutes 2024, 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. (d) Regulation A - Tier 2 filing requirements. (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: (A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the documents filed with the Securities Exchange Commission; and (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. The initial notice filing made in Minnesota is effective for 12 months after the date the filing is made. (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. (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 begin (e) Notice filing requirement for federal crowdfunding offerings. This paragraph applies to offerings made under Regulation Crowdfunding, Code of Federal Regulations, title 17, part 227, and sections 4(a)(6) and 18(b)(4)(C) of the Securities Act of 1933, United States Code, title 15, sections 77d(A)(6) and 77r(b)(4)(C). new text end new text begin (1) Initial filing. An issuer that (i) offers and sells securities in Minnesota in an offering exempt under federal Regulation Crowdfunding, and (ii) has a principal place of business in Minnesota or sells at least 50 percent of the offering's aggregate amount to Minnesota residents, must file with the administrator: new text end new text begin (A) a completed Uniform Notice of Federal Crowdfunding Offering form or copies of all documents filed with the Securities and Exchange Commission; and new text end new text begin (B) if the issuer is not filing on the Uniform Notice of Federal Crowdfunding Offering form, consent to service of process on Form U-2. new text end new text begin If the issuer's principal place of business is in Minnesota, the initial filing must be submitted with the administrator when the issuer makes the issuer's initial Form C filing concerning the offering with the Securities and Exchange Commission. If the issuer's principal place of business is not in Minnesota but Minnesota residents have purchased at least 50 percent of the aggregate amount of the offering, the filing must be submitted when the issuer becomes aware that the aggregate purchases made by Minnesota residents meets the threshold, but no later than 30 days after the date the offering is complete. The initial notice filing is effective for a 12-month period beginning on the date the initial filing is submitted to the administrator. new text end new text begin (2) Renewal. For each additional 12-month period in which a single offering is continued, an issuer conducting an offering under federal Regulation Crowdfunding may renew the issuer's notice filing by filing with the administrator on or before the date the current notice filing expires: new text end new text begin (A) a completed Uniform Notice of Federal Crowdfunding Offering form that is marked "renewal"; or new text end new text begin (B) a cover letter or other document requesting renewal new text end new text begin . new text end new text begin (3) Amendment. An issuer may increase the amount of securities offered in Minnesota by submitting (i) a completed Uniform Notice of Federal Crowdfunding Offering form that is marked "amendment," or (ii) another document that describes the modified transaction. new text end Sec. 2. Minnesota Statutes 2025 Supplement, 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; deleted text begin and deleted text end new text begin (3) a broker-dealer must establish and maintain: (i) a set of written supervisory procedures that reasonably prevent and detect violations of chapter 80A; Minnesota Rules, chapter 2876; or related orders issued by the commissioner; and (ii) a system to apply the procedures established under this clause. The procedures must designate by name or title a number of supervisory employees that is reasonable relative to the number of the broker-dealer's registered agents, offices, and transactions in Minnesota. A copy of the written procedures and the system to apply the procedures must be kept and maintained at each branch office affiliated with the broker-dealer. A broker-dealer may use electronic media in accordance with FINRA Rule 3110.11, or any successor federal law, to satisfy its obligation under this paragraph; and new text end deleted text begin (3) deleted text end new text begin (4) new text end 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 or 80A.58 to participate in a continuing education program approved by the Securities and Exchange Commission and administered by a self-regulatory organization, the North American Securities Administrators Association, or the commissioner. new text begin (j) Business continuity and succession plan. An investment adviser registered or required to be registered under this chapter must establish, maintain, and enforce written policies and procedures relating to business continuity and succession planning. At a minimum, the policies and procedures under this paragraph must provide: new text end new text begin (1) a means to protect, back up, and recover books and records; new text end new text begin (2) an alternate method to provide notice to customers; key personnel; employees; vendors; service providers, including third-party custodians; and regulators, regarding issues pertaining to the investment adviser's business operations, including but not limited to significant business interruption, the death or unavailability of key personnel, other disruption to business activities, or ceasing business operations; new text end new text begin (3) a plan to relocate the office space for a principal place of business that is subject to a temporary or permanent loss; new text end new text begin (4) a plan to assign duties to qualified responsible persons if key personnel die or are otherwise unavailable; and new text end new text begin (5) a plan to otherwise minimize service disruption and client harm that might result from sudden and significant business interruption. new text end new text begin (k) Physical security and cybersecurity policies and procedures. An investment adviser registered or required to be registered under this chapter must establish, implement, update, and enforce written physical security and cybersecurity policies and procedures that are designed to ensure the confidentiality, integrity, and availability of physical and electronic records and information. The policies and procedures must be tailored to the investment adviser's business model and must take into account the investment adviser's business size, type of service provided, and number of locations. new text end new text begin (1) The physical security and cybersecurity policies and procedures must: new text end new text begin (A) protect against reasonably anticipated threats or hazards to the security or integrity of client records and information; new text end new text begin (B) ensure that the investment adviser protects confidential client records and information; and new text end new text begin (C) protect client records and information that, if released, might result in harm or inconvenience to the client. new text end new text begin (2) At a minimum, the physical security and cybersecurity policies and procedures must develop and implement: new text end new text begin (A) an organizational understanding to manage information security risk with respect to systems, assets, data, and capabilities; new text end new text begin (B) safeguards to ensure delivery of critical infrastructure services; new text end new text begin (C) actions and tools to identify when an information security event occurs; new text end new text begin (D) actions to take when an information security event is detected; and new text end new text begin (E) plans for security and system resilience, and to restore capabilities or services that are impaired due to an information security event. new text end new text begin (3) At the time a client engages an investment adviser and on an annual basis thereafter, an investment adviser must deliver to the client a privacy policy that is reasonably designed to assist the client understand how the investment adviser collects and shares, to the extent permitted by state and federal law, nonpublic personal information. If information in the policy becomes materially inaccurate, the investment adviser must promptly update and deliver an amended privacy policy to the client. new text end new text begin (l) Written confirmation. A broker-dealer must promptly provide to the customer a written confirmation at or before completing a transaction in accordance with FINRA Rule 2232, or any successor federal law. The confirmation must: new text end new text begin (1) describe the security purchased or sold, the date of the transaction, the price of the security purchased or sold, and any commission charged; new text end new text begin (2) indicate whether the broker-dealer acted for the broker-dealer's account, as an agent for a customer, as an agent for another person, or as an agent for both a customer and another person; new text end new text begin (3) if the broker-dealer is acting as an agent for a customer, include (i) the name of the person who purchased the security, (ii) the name of the person who sold the security, or (iii) a statement that the information in item (i) or (ii) is available to a customer on request if the broker-dealer knows the information or is able to ascertain the information with reasonable diligence; new text end new text begin (4) indicate whether the transaction was unsolicited; and new text end new text begin (5) indicate the name of the agent that executed the transaction. new text end new text begin A broker-dealer that complies with Securities and Exchange Commission Rule 10b-10, Code of Federal Regulations, title 17, part 240.10b-10, or article III, section 12, of the Financial Industry Regulatory Authority Rules of Fair Practice, complies with this paragraph. new text end new text begin (m) Conditions; stipulations; provisions. A broker-dealer is prohibited from entering into a contract with a customer if the contract contains a condition, stipulation, or provision that binds the customer to waive rights under chapter 80A; Minnesota Rules, chapter 2876; or an order issued by the commissioner. A condition, stipulation, or provision included in a contract subject to this paragraph is void. new text end new text begin (n) Principal office; employment. A broker-dealer whose principal office is located in Minnesota must have at least one registered person employed on a full-time basis at the principal office located in Minnesota. This paragraph does not apply to a broker-dealer engaged solely in offering and selling: new text end new text begin (1) interests in a direct participation program; or new text end new text begin (2) securities issued by open-end investment companies, face amount certificate companies, or unit investment trusts registered under the Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64. new text end Sec. 3. Minnesota Statutes 2024, section 80A.69, is amended to read: 80A.69 SECTION 502; PROHIBITED CONDUCT IN PROVIDING INVESTMENT ADVICE. (a) Fraud in providing investment advice. It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or promulgates analyses or reports relating to securities: (1) to employ a device, scheme, or artifice to defraud another person; or (2) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person. (b) Rules defining fraud. A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative. (c) Rules specifying contents of advisory contract. A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser. Sec. 4. new text begin [80A.691] BROKER-DEALERS; AGENTS; DISHONEST OR UNETHICAL BUSINESS PRACTICES. new text end new text begin Subdivision 1. new text end new text begin Broker-dealers; standards and principles. new text end new text begin A broker-dealer must observe high standards of commercial honor and just and equitable principles of trade when conducting the broker-dealer's business. An act or practice that is contrary to the standards constitutes grounds for the administrator to deny, suspend, or revoke the broker-dealer's registration or to take other action authorized by statute. For purposes of this subdivision, an act or practice that is contrary to the standards includes: new text end new text begin (1) engaging in a pattern of unreasonable and unjustifiable delays with respect to: (i) delivering securities purchased by a customer; or (ii) upon request, paying free credit balances reflecting a customer's completed transactions; new text end new text begin (2) inducing trading in a customer's account that is excessive in size or frequency considering the account's financial resources and character; new text end new text begin (3) recommending that a customer purchase, sell, or exchange a security without reasonable grounds to believe the transaction or recommendation is suitable for the customer, based on: (i) a reasonable inquiry regarding the customer's investment objectives, financial situation, and needs; and (ii) other relevant information known by the broker-dealer; new text end new text begin (4) making a recommendation of any security transaction or investment strategy involving securities, including account recommendations, to a retail customer if the recommendation does not comply with the obligations set forth in Code of Federal Regulations, title 17, section 240.15l-1; new text end new text begin (5) executing a transaction on behalf of a customer without the customer's authorization; new text end new text begin (6) exercising discretionary power to effect a transaction for a customer's account without first obtaining written discretionary authority from the customer, unless the discretionary power relates solely to the time the order is executed or the order's price; new text end new text begin (7) executing a transaction in a margin account without securing from the customer a properly executed written margin agreement promptly after the account's initial transaction; new text end new text begin (8) failing to segregate customers' free securities or securities held in safekeeping; new text end new text begin (9) hypothecating a customer's securities without having a lien on the customer's securities, unless the broker-dealer secures the customer's properly executed written consent promptly after the initial transaction, except as permitted by Securities and Exchange Commission regulations; new text end new text begin (10) entering into a transaction with or for a customer at a price that is not reasonably related to the security's current market price, or receiving an unreasonable commission or profit; new text end new text begin (11) failing to furnish to a customer purchasing securities in an offering, no later than the due date for the transaction's confirmation: (i) a final prospectus; or (ii) a preliminary prospectus and an additional document that, when combined with the preliminary prospectus, includes all of the information included in the final prospectus; new text end new text begin (12) charging an unreasonable or inequitable fee for services performed, including: (i) miscellaneous services that include but are not limited to collecting money due for principal, dividends or interest, exchanging or transferring securities, appraisals, safekeeping, or maintaining custody of securities; and (ii) other services related to the broker-dealer's securities business; new text end new text begin (13) offering to buy or sell a security at a stated price if the broker-dealer is not prepared to purchase or sell at the stated price and under the stated conditions at the time the offer to buy or sell is made; new text end new text begin (14) representing that a security is being offered to a customer "at the market" or at a price relevant to the market price, unless the broker-dealer knows or has reasonable grounds to believe a market for the security exists other than the market made, created, or controlled by: (i) the broker-dealer; (ii) a person for whom the broker-dealer is acting or with whom the broker-dealer is associated with respect to the security's distribution; or (iii) a person controlled by, controlling, or under common control with the broker-dealer; new text end new text begin (15) effecting a transaction in, or inducing the purchase or sale of, a security using a manipulative, deceptive, or fraudulent device, practice, plan, program, design, or contrivance, which includes but is not limited to: new text end new text begin (i) effecting a transaction in a security that involves no change in the security's beneficial ownership; new text end new text begin (ii) entering an order to purchase or sell a security with the knowledge that at least one other order for the same security that is substantially the same size, entered at substantially the same time, and for substantially the same price as the order has been or will be entered by or for the same or a different party to create (A) a false or misleading appearance of active trading in the security, or (B) a false or misleading appearance with respect to the market for the security. This item does not prohibit a broker-dealer from entering bona fide agency cross transactions for the broker-dealer's customers; or new text end new text begin (iii) effecting, alone or with another person, a series of transactions in a security that creates actual or apparent active trading in the security, or raises or reduces the price of the security, to induce others to purchase or sell the security; new text end new text begin (16) guaranteeing a customer against loss in: (i) a securities account the broker-dealer carries for the customer; (ii) a securities transaction effected by the broker-dealer; or (iii) a securities transaction effected by the broker-dealer with or for the customer; new text end new text begin (17) publishing or circulating, or causing to be published or circulated, a notice, circular, advertisement, newspaper article, investment service, or communication of any kind that purports to: (i) report a transaction as a purchase or sale of a security, unless the broker-dealer believes that the transaction was a bona fide purchase or sale of the security; or (ii) quote the bid price or asked price for a security, unless the broker-dealer believes the quote represents a bona fide bid for or offer of the security; new text end new text begin (18) using an advertising or sales presentation in a manner that is deceptive or misleading, including but not limited to distributing: (i) nonfactual data, material, or a presentation based on conjecture, unfounded claims, or unrealistic claims; or (ii) assertions in a brochure, flyer, or display using words, pictures, graphs, or other representations that are designed to supplement, detract from, supersede, or defeat a prospectus' or disclosure's purpose or effect; new text end new text begin (19) failing to disclose to a customer, before entering into a contract with or for a customer to purchase or sell a security, that the broker-dealer is controlled by, controlling, affiliated with, or under common control with the security's issuer. If a disclosure under this clause is not made in writing, the disclosure must be supplemented by giving or sending written disclosure before or at the time the transaction is completed; new text end new text begin (20) failing to make a bona fide public offering of all of the securities allotted to a broker-dealer for distribution, whether the securities are acquired as an underwriter, as a selling group member, or from a member participating in the distribution as an underwriter or selling group member; new text end new text begin (21) failing or refusing to: (i) furnish a customer, upon reasonable request, information the customer is entitled to; or (ii) respond to a formal written request or complaint; new text end new text begin (22) failing to pay and fully satisfy a final judgment or arbitration award resulting from an arbitration or court proceeding relating to an investment and initiated by the customer, unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies with the terms of the alternative payment arrangement; new text end new text begin (23) attempting to avoid paying a final judgment or arbitration award resulting from an arbitration or court proceeding relating to an investment and initiated by the customer, unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies with the terms of the alternative payment arrangement; new text end new text begin (24) failing to pay and fully satisfy a fine, civil penalty, order of restitution, order of disgorgement, or similar monetary payment obligation imposed upon the broker-dealer or broker-dealer's agent by the Securities and Exchange Commission, a state or provincial securities or other financial services regulator, or a self-regulatory organization; new text end new text begin (25) accessing a client's account by using the client's unique identifying information, including but not limited to the client's username and password; new text end new text begin (26) in connection with soliciting a sale or purchase of an over-the-counter non-NASDAQ security, failing to promptly provide the most current prospectus or the most recently filed periodic report filed under Section 13 of the Securities Exchange Act of 1934, United States Code, title 15, section 78m, as amended, if the broker-dealer receives a request from a customer; new text end new text begin (27) marking an order ticket or confirmation as unsolicited if the transaction is solicited; new text end new text begin (28) for each month in which activity has occurred in a customer's account and no less frequently than once every three months regardless of whether customer account activity has occurred, failing to provide the customer with an account statement that, with respect to all over-the-counter non-NASDAQ equity securities in the account, contains a value for each security based on the closing market bid on a date certain. This clause applies only if the broker-dealer has been a market maker in the security at any time during the month in which the monthly or quarterly statement is issued; or new text end new text begin (29) failing to comply with an applicable provision of the Financial Industry Regulatory Authority conduct rules or an applicable fair practice or ethical standard promulgated by the Securities and Exchange Commission or a self-regulatory organization approved by the Securities and Exchange Commission. new text end new text begin Subd. 2. new text end new text begin Broker-dealer's agents; standards and principles. new text end new text begin A broker-dealer's agent must observe high standards of commercial honor and just and equitable principles of trade when conducting the broker-dealer's agent's business. An act or practice that is contrary to the standards constitutes grounds for the administrator to deny, suspend, or revoke the broker-dealer's agent's registration or to take other action authorized by statute. For purposes of this subdivision, an act or practice that is contrary to the standards includes: new text end new text begin (1) lending to or borrowing from a customer money or securities, or acting as a custodian for a customer's money, securities, or executed stock power, unless otherwise permissible under FINRA Rule 3240 or any successor federal law; new text end new text begin (2) effecting securities transactions that are not recorded on the regular books or records maintained by the broker-dealer the broker-dealer's agent represents, unless the transactions are authorized in writing by the broker-dealer before executing the transaction or exempt as subscription-way transactions under Rule 17a-3 of the Securities Exchange Act of 1934 or any successor federal law; new text end new text begin (3) establishing or maintaining an account that contains fictitious information in order to execute transactions that are otherwise prohibited; new text end new text begin (4) sharing directly or indirectly in profits or losses in a customer account without the written authorization from the customer and the broker-dealer the broker-dealer's agent represents; new text end new text begin (5) dividing or otherwise splitting the broker-dealer's agent's commissions, profits, or other compensation from purchasing or selling securities with a person who is not also registered as a broker-dealer's agent for the same broker-dealer or for a broker-dealer under direct or indirect common control or unless otherwise allowed under Securities and Exchange Commission rules, guidance, or authorization; or new text end new text begin (6) engaging in the conduct specified under subdivision 1, clause (2), (3), (4), (5), (6), (7), (10), (11), (15), (16), (17), (18), (22), (23), (24), (25), (26), (27), (28), or (29). new text end new text begin Subd. 3. new text end new text begin Conduct specified not exclusive. new text end new text begin The conduct identified as a violation under subdivisions 1 and 2 is not exclusive. A broker-dealer or broker-dealer's agent that engages in other conduct, including but not limited to forgery, embezzlement, nondisclosure, incomplete disclosure, misstatement of material facts, or manipulative or deceptive practices, is also subject to denial, suspension, or revocation of registration. new text end Sec. 5. Minnesota Statutes 2024, section 80C.12, subdivision 1, is amended to read: Subdivision 1. Grounds. The commissioner, with or without prior notice or hearing, may issue a cease and desist order and may issue an order denying, suspending or revoking any registration, amendment or exemption on finding any of the following: deleted text begin (a) deleted text end new text begin (1) new text end that the applicant, registrant or franchisor or any officer, director, agent or employee thereof or any other person has violated or failed to comply with any provision of sections 80C.01 to 80C.22 or any rule or order of the commissioner; deleted text begin (b) deleted text end new text begin (2) new text end that the offer, sale, or purchase of the franchise would constitute misrepresentation to or deceit or fraud upon purchasers thereof, or has worked or tended to work a fraud upon purchasers or would so operate; deleted text begin (c) deleted text end new text begin (3) new text end that the applicant, registrant or franchisor or any officer, director, agent or employee thereof or any other person is engaging or about to engage in false, fraudulent or deceptive practices in connection with the offer and sale of a franchise; deleted text begin (d) deleted text end new text begin (4) new text end that any person identified in a public offering statement has been new text begin : new text end new text begin (i) new text end convicted of an offense new text begin or held liable in a civil action by final judgment new text end described in section 80C.04 , new text begin subdivision 1, paragraph (e), new text end clause deleted text begin (5) deleted text end new text begin (1) new text end new text begin , has a civil or criminal action pending as described in section 80C.04, subdivision 1, paragraph (e), clause (5) new text end , or is subject to an order deleted text begin , or has had a civil judgment entered against the person as described in section 80C.04 , clause (5), deleted text end new text begin described in section 80C.04, subdivision 1, paragraph (e), clauses (2) to (4); new text end and new text begin (ii) new text end the involvement of the person in the business of the applicant or franchisor creates a substantial risk to prospective franchisees; deleted text begin (e) deleted text end new text begin (5) new text end that the financial condition of the franchisor adversely affects or would adversely affect the ability of the franchisor to fulfill its obligations under the franchise agreement; deleted text begin (f) deleted text end new text begin (6) new text end that the franchisor's enterprise or method of business includes or would include activities which are illegal where performed; new text begin or new text end deleted text begin (g) deleted text end new text begin (7) new text end that the method of sale or proposed method of sale of franchises or the operation of the business of the franchisor or any term or condition of the franchise agreement or any practice of the franchisor is or would be unfair or inequitable to franchisees. ARTICLE 4 UNCLAIMED PROPERTY Section 1. Minnesota Statutes 2024, section 345.31, is amended by adding a subdivision to read: new text begin Subd. 10. new text end new text begin Virtual currency. new text end new text begin "Virtual currency" means a digital representation of value used as a medium of exchange, unit of account, or store of value that does not have legal tender status recognized by the United States. Virtual currency does not include: new text end new text begin (1) software or protocols governing the transfer of the digital representation of value; new text end new text begin (2) game-related digital content; or new text end new text begin (3) a loyalty card or gift card. new text end Sec. 2. new text begin [345.382] FUNDS HELD FOR THE PREPAYMENT OF FUNERAL-RELATED EXPENSES. new text end new text begin Funds on deposit or held in trust for the prepayment of a funeral or other funeral-related expenses are presumed abandoned at the earliest of: new text end new text begin (1) three years after the date of death of the beneficiary; new text end new text begin (2) one year after the date the beneficiary has attained, or would have attained if living, the age of 105, if the holder does not know whether the beneficiary is deceased; or new text end new text begin (3) 30 years after the contract for prepayment was executed. new text end Sec. 3. new text begin [345.383] EXEMPTION FOR CERTAIN PROPERTY HELD IN TAX-DEFERRED ACCOUNTS. new text end new text begin Property held in a plan described in section 529 or 529A of the Internal Revenue Code, as amended, are exempt from the requirements of sections 345.31 to 345.60. new text end Sec. 4. new text begin [345.384] VIRTUAL CURRENCY. new text end new text begin (a) Virtual currency is presumed abandoned three years after the apparent owner's latest indication of interest in the virtual currency. new text end new text begin (b) For purposes of this section, an indication of an apparent owner's interest in virtual currency includes: new text end new text begin (1) a record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held; new text end new text begin (2) an oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication; new text end new text begin (3) a distribution, or evidence of receipt of a distribution made by electronic or similar means; or new text end new text begin (4) activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of virtual currency held in the account. new text end new text begin (c) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner. new text end new text begin (d) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property. new text end Sec. 5. Minnesota Statutes 2024, section 345.43, is amended by adding a subdivision to read: new text begin Subd. 2b. new text end new text begin Virtual currency. new text end new text begin (a) If property reported to the commissioner is virtual currency, the holder must liquidate the virtual currency and remit the proceeds to the commissioner. new text end new text begin (b) The liquidation must occur anytime within 30 days before filing the report under section 345A.26. The owner does not have recourse against the holder or the commissioner to recover any gain in value that occurs after the liquidation of the virtual currency under this subdivision. new text end new text begin (c) If a holder cannot liquidate virtual currency and cannot otherwise cause virtual currency to be liquidated, the holder must promptly notify the commissioner in writing and explain the reasons the virtual currency cannot be liquidated. The commissioner has absolute and sole discretion to direct the holder to: new text end new text begin (1) transfer the virtual currency that cannot be liquidated to a custodian selected by the commissioner; or new text end new text begin (2) continue to hold the virtual currency until the commissioner or the holder determines that the virtual currency can be liquidated pursuant to this chapter. new text end APPENDIX Repealed Minnesota Statutes: H4188-1 48.158 SETTLEMENT OF CHECKS AT LESS THAN PAR. No bank or trust company organized under the laws of this state shall settle any check drawn on it otherwise than at par. The provisions of this section shall not apply with respect to the settlement of a check sent to such bank or trust company as a special collection item. This section is in effect on and after November 1, 1968. 53B.69 DEFINITIONS. Subd. 3b. New customer. "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 72 hours. After a 72-hour period has elapsed from the day of first signing up as a customer with a virtual currency kiosk operator, the customer will be considered an existing customer and no longer subject to the new customer transaction limit described in section 53B.75, subdivision 5, paragraph (a). Subd. 3c. Existing customer. "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 72-hour period. A new customer will automatically convert to an existing customer after the 72-hour period of first becoming a new customer. An existing customer is subject to the transaction limits described in section 53B.75, subdivision 5, paragraph (b). 53B.75 VIRTUAL CURRENCY KIOSKS. Subdivision 1. Disclosures on material risks. (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 a clear, conspicuous, and easily readable manner 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: (1) virtual currency is not legal tender, 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; (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; (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 virtual currency disappears; (4) a person who accepts a virtual currency as payment today is not required to accept and might not accept virtual currency in the future; (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; (6) the nature of virtual currency means that any technological difficulties experienced by virtual currency kiosk operators may prevent access to or use of a person's virtual currency; and (7) any bond maintained by the virtual currency kiosk operator for the benefit of a person may not cover all losses a person incurs. (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. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME, AND INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY." Subd. 2. Disclosures. (a) A virtual currency kiosk operator must disclose all relevant terms and conditions generally associated with the products, services, and activities of the virtual currency kiosk operator and virtual currency. A virtual currency kiosk operator must make the disclosures in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following: (1) the person's liability for unauthorized virtual currency transactions; (2) the person's right to: (i) stop payment of a virtual currency transfer and the procedure to stop payment; (ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of the transaction; and (iii) prior notice of a change in the virtual currency kiosk operator's rules or policies; (3) under what circumstances the virtual currency kiosk operator, without a court or government order, discloses a person's account information to third parties; and (4) other disclosures that are customarily provided in connection with opening a person's account. (b) Before each virtual currency transaction for, on behalf of, or with a person, a virtual currency kiosk operator must disclose the transaction's terms and conditions in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following: (1) the amount of the transaction; (2) any fees, expenses, and charges, including applicable exchange rates; (3) the type and nature of the transaction; (4) a warning that once completed, the transaction may not be reversed; (5) a daily virtual currency transaction limit of no more than $2,000; (6) the difference in the virtual currency's sale price compared to the current market price; and (7) other disclosures that are customarily given in connection with a virtual currency transaction. Subd. 3. Acknowledgment of disclosures. 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 kiosk operator must provide a person with a physical receipt, or a virtual receipt sent to the person's email address or SMS number, containing the following information: (1) the virtual currency kiosk operator's name and contact information, including a telephone number to answer questions and register complaints; (2) the type, value, date, and precise time of the transaction, transaction hash, and each virtual currency address; (3) the fees charged; (4) the exchange rate; (5) a statement of the virtual currency kiosk operator's liability for nondelivery or delayed delivery; (6) a statement of the virtual currency kiosk operator's refund policy; and (7) any additional information the commissioner of commerce may require. Subd. 4. Refunds for new customers. A virtual currency kiosk operator must issue a refund to a new customer for the full amount of all transactions made within the 72-hour new customer time period, as described in section 53B.69, subdivision 3b , upon request of the customer. In order to receive a refund under this subdivision, a customer must: (1) have been fraudulently induced to engage in the virtual currency transactions; and (2) within 14 days of the last transaction to occur during the 72-hour new customer time period, contact the virtual currency kiosk operator and a government or law enforcement agency to inform them of the fraudulent nature of the transaction. Subd. 5. Transaction limits. (a) There is an established maximum daily transaction limit of $2,000 for each new customer of a virtual currency kiosk. (b) The maximum daily transaction limit of an existing customer shall be decided by each virtual currency kiosk operator in compliance with federal law.