This bill, introduced in the Minnesota Senate as S.F. No. 2476, makes technical and housekeeping changes to various statutes governing commerce and the Department of Commerce’s administrative rules. Key provisions in the bill include:

1. Electronic Licensing Database System Fees (Sec. 1)

   • Establishes an electronic licensing database system for license renewals and tracking continuing education.
     
   • Introduces a technology surcharge (up to $40 per two-year renewal) to fund the system.
   • The surcharge may be temporarily reduced or suspended if the fund balance exceeds $2 million.

2. Financial Institution Regulations (Secs. 2-3)

   • Clarifies that institutions with fewer than 5,000 consumers are exempt from certain data management requirements.
     
   • Prohibits financial institutions from closing or transferring deposit accounts without 30-day prior notice unless there is suspicion of fraud or criminal activity.

3. Money Transmission and Investment Regulations (Sec. 4-5)

   • Requires money transmitters to maintain permissible investments equaling their total outstanding obligations.
     
   • Allows the Commissioner of Commerce to limit high-risk investments and establish other qualifying investments by rule.
     
   • Creates special trust protections for permissible investments if a money transmitter becomes insolvent.
     
   • Permits automatic renewal of safe deposit leases, with consumers able to terminate them at any time.

4. Student Loan Lender Definition Update (Sec. 6)

   • Clarifies the definition of "lender" to ensure that some entities (banks, credit unions, and federal student loan processors) remain excluded from state regulation where federal law preempts state oversight.

5. Health Plan External Review Changes (Sec. 7)

   • Modifies the independent external review process for adverse health plan determinations, allowing contracts to be with more than one review organization rather than requiring three.

6. Financial Registration and Compliance (Sec. 8)

   • Updates post-registration requirements for broker-dealers and investment advisers, including record-keeping, financial reports, audits, bonding, custody requirements, and investment adviser disclosure rules.
     
   • Introduces continuing education requirements for certain financial professionals.

7. Expedited Rulemaking for Securities Regulation (Sec. 9)

   • Requires the Commerce Commissioner to update references in commerce regulations to reflect that NASD is now FINRA and align rules with new FINRA broker-dealer conduct standards.
     

Overall Purpose:

• The bill modernizes commerce regulations, improves consumer protections, updates financial compliance rules, and allows for more efficient licensing and oversight by the Minnesota Department of Commerce.