Purpose of the Bill

This bill aims to update and make technical adjustments to various commerce-related statutes in Minnesota. The goal is to streamline administrative processes, update terminology, and refine existing rules, particularly in areas such as electronic licensing, financial institutions, money transmission, safe deposit regulation, student loans, healthcare contracts, and investment adviser requirements.

Main Provisions

• Electronic Licensing and Fees: Establishes an electronic licensing database for handling licenses requiring continuing education. Introduces a surcharge on the fees associated with these licenses to cover system costs, with provisions to manage surplus funds.
• Financial Institution Regulations: Institutes rules for notifying customers about account transfers and closures, especially in cases of suspected fraud or crime.
• Money Transmission and Permissible Investments: Reinforces the requirement for licensees to maintain permissible investments that cover all money transmission obligations and sets conditions for maintaining a statutory trust in case of insolvency.
• Safe Deposit Box Leases: Allows automatic renewals of safe deposit leases, providing consumers the option to terminate leases at their convenience.
• Student Loans and Lenders: Clarifies the definition of a lender concerning student loans and notes exemptions for certain entities from state regulations.
• Healthcare Contracts: Requires contracts for independent external reviews of adverse determinations in healthcare, ensuring that these services are provided at reasonable fees.
• Investment Advisor and Broker-Dealer Requirements: Outlines requirements for financial reporting, record-keeping, audits, custody of funds, and continuing education for brokers, dealers, and investment advisers.

Significant Changes

• Introduces a technology surcharge for licenses requiring continuing education and establishes a dedicated Commerce Department technology account.
• Updates procedures for account management by financial institutions, including new notification and consent requirements.
• Adjusts rules on safe deposit leases to allow automatic renewals and more consumer control over termination.
• Provides more detailed requirements for investment advisers regarding record maintenance and audits.
• Requires the adoption of rules to reflect updates in terminology and compliance with FINRA regulations, using an expedited rulemaking process.

Relevant Terms

• Electronic Licensing
• Financial Institutions
• Permissible Investments
• Safe Deposit Boxes
• Student Loans
• Investment Advisers
• Broker-Dealers
• FINRA (Financial Industry Regulatory Authority)
• Continuing Education
• Technology Surcharge