HF2398

HF2398 (Legislative Session 94 (2025-2026))

Technical and housekeeping changes made to various provisions governing or administered by the Department of Commerce, and administrative rulemaking authorized.

Related bill: SF2476

AI Generated Summary

Purpose of the Bill

This bill aims to update and make technical adjustments to various statutes related to commerce regulations in Minnesota. It addresses the establishment of a licensing database, adjusts rules for financial institutions, and updates procedures for handling permissible investments, among other matters.

Main Provisions

Electronic Licensing Database and Technology Surcharge: Establishes a system for electronic license management, including renewals and continuing education tracking, funded by a technology surcharge of up to $40 every two years. The surcharge may be adjusted based on account balance needs.
Financial Institutions: Certain exemptions and requirements for financial institutions regarding customer information and account management. It mandates prior notification for account transfers and closures unless there's suspicion of fraud.
Permissible Investments: Licensees must maintain permissible investments equal to or greater than their outstanding money transmission obligations. The investments are held in trust to protect customers.
Safe Deposit Box Leases: Allows for automatic renewal of safe deposit leases and specifies termination methods.
Student Loans Definition: Clarifies the entities falling under the definition of "lender" concerning student loans.
External Reviews: Mandates contracts for independent reviews of adverse determinations by more than one organization to ensure fair evaluations.
Securities and Investment Advisers: Updates requirements for broker-dealers and investment advisers concerning financial, reporting, and record-keeping obligations, aligning with federal laws.

Significant Changes to Existing Law

Amends statutes to reflect updated practices, such as adjusting terms to current organizational names like NASD to FINRA in accordance with changing regulatory environments.
Enhances the flexibility of rules regarding permissible investments and technology fees, allowing for fund balance and investment liquidity adjustments as necessary.
Introduces an expedited rulemaking process for aligning state laws with federal updates on securities broker-dealer conduct.

Relevant Terms

Electronic licensing system
Technology surcharge
Financial institutions
Trust for permissible investments
Safe deposit lease
Student loans lender
External review contracts
Broker-dealer and investment adviser regulations
FINRA (Financial Industry Regulatory Authority)
Expedited rulemaking

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "A new subsection clarifying disbursement rules."
      ],
      "removed": [
        "Eliminates previous requirement for municipal matching funds."
      ],
      "summary": "This bill modifies pension fund eligibility for volunteer firefighters under section 353G.06.",
      "modified": [
        "Adjusts pension payment schedule from annual to quarterly."
      ]
    },
    "citation": "353G.06"
  }
]