Purpose of the Bill

This bill aims to make technical, administrative, and housekeeping changes to various provisions overseen by the Minnesota Department of Commerce. It also authorizes administrative rulemaking to facilitate these updates and improvements.

Main Provisions

• Licensing Database and Fee Adjustments: The bill allows the commissioner to maintain an electronic licensing database and finance it through a technology surcharge applied to license origination and renewal fees. It also allows for the temporary reduction or suspension of the surcharge if the fund balance exceeds a specified amount.

• Financial Institutions Regulations: Updates rules regarding how deposit accounts are transferred or closed by financial institutions, ensuring account holders receive advance notice and consent if terms change.

• Permissible Investments: Licensees must maintain permissible investments for money transmission obligations. The commissioner is granted authority to limit or expand what qualifies as a permissible investment to protect consumers.

• Safe Deposit Lease Renewals: A new provision allows safe deposit leases to renew automatically and specifies conditions for termination by consumers.

• External Review Contracts: Requires the Commissioner of Administration to contract with more than one organization for independent external reviews of adverse determinations, ensuring reasonable service fees.

• Investment Advisers: Brokers and advisers must maintain records and reports, undergo audits, and meet minimum financial requirements in compliance with federal law. Moreover, a new requirement mandates investment advisers to participate in approved continuing education programs.

• Rulemaking Authority: Authorizes expedited rulemaking to align with updated practices and terminologies, such as reflecting changes from NASD to FINRA.

Significant Changes to Existing Law

• The introduction of a technology surcharge to support an updated licensing database system.
• Clarification and adjustment of rules regarding the closure and transfer of deposit accounts and the protection of consumers' rights regarding these accounts.
• Enhancement of permissible investment guidelines and clarification of trust conditions in case of insolvency of licensees.
• More stringent regulations on the automatic renewal of safe deposit leases, allowing consumers more flexibility in terminating contracts.

Relevant Terms

licensing database, technology surcharge, permissible investments, safe deposit lease, external reviews, investment advisers, broker-dealers, FINRA, expedited rulemaking.