sch3255a-2

1.1Senator Dahms moved to amend H.F. No. 3255, as amended pursuant to Rule 45,
1.2adopted by the Senate May 20, 2022, as follows:
1.3(The text of the amended House File is identical to S.F. No. 3243.)
1.4Delete everything after the enacting clause and insert:

1.5"ARTICLE 1

1.6SUPPLEMENTAL APPROPRIATIONS

1.7

Section 1. APPROPRIATIONS.

1.8The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.9and for the purposes specified in this article. The appropriations are from the general fund,
1.10or another named fund, and are available for the fiscal years indicated for each purpose.
1.11The figures "2022" and "2023" used in this article mean that the appropriations listed under
1.12them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
1.13"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium"
1.14is fiscal years 2022 and 2023. If an appropriation in this act is enacted more than once in
1.15the 2022 legislative session, the appropriation must be given effect only once. Appropriations
1.16for the fiscal year ending June 30, 2022, are effective the day following final enactment.
1.17The appropriations made under this article supplement, and do not supersede or replace,
1.18the appropriations made under Laws 2021, First Special Session chapter 4, article 1.

`1.19`	APPROPRIATIONS
`1.20`	Available for the Year
`1.21`	Ending June 30
`1.22`		2022	2023

1.23

Sec. 2. DEPARTMENT OF COMMERCE

1.24

Subdivision 1.Total Appropriation

-0-

$1,347,000

1.25The amounts that may be spent for each
1.26purpose are specified in the following
1.27subdivisions.

1.28

Subd. 2.Administrative Services

-0-

1.29$19,000 in fiscal year 2024 and $23,000 in
1.30fiscal year 2025 are base amounts for the
1.31licensing disqualification and preliminary
1.32application requirements under Minnesota
1.33Statutes, section 214.035.

2.1

Subd. 3.Financial Services

-0-

300,000

2.2$300,000 in fiscal year 2023 is for additional
2.3securities staff.

2.4

Subd. 4.Insurance

-0-

525,000

2.5$525,000 in fiscal year 2023 is for additional
2.6staff in the insurance and enforcement
2.7divisions. The additional staff must focus on
2.8property- and casualty-related insurance
2.9products and market conduct examinations.

2.10

Subd. 5.Enforcement and Examinations

-0-

522,000

2.11$522,000 in fiscal year 2023 is for the auto
2.12theft prevention library under Minnesota
2.13Statutes, section 65B.84, subdivision 1,
2.14paragraph (d). This is a onetime appropriation.

2.15

Sec. 3. BOARD OF ACCOUNTANCY

-0-

2.16Licensing Disqualifications; Preliminary
2.17Applications.
2.18$6,000 in fiscal year 2024 is the base amount
2.19to the Board of Accountancy for the licensing
2.20disqualification and preliminary application
2.21requirements under Minnesota Statutes,
2.22section 214.035. This is a onetime
2.23appropriation.

2.24

Sec. 4. ATTORNEY GENERAL

-0-

2.25Licensing Disqualifications; Preliminary
2.26Applications.
2.27$24,000 in fiscal year 2024 and $24,000 in
2.28fiscal year 2025 are base amounts to the
2.29attorney general for the licensing
2.30disqualification and preliminary application
2.31requirements under Minnesota Statutes,
2.32section 214.035.

3.1

Sec. 5. DEPARTMENT OF REVENUE

-0-

3.2Licensing Disqualifications; Preliminary
3.3Applications.
3.4$19,000 in fiscal year 2024 and $3,000 in
3.5fiscal year 2025 are base amounts to the
3.6Department of Revenue for the licensing
3.7disqualification and preliminary application
3.8requirements under Minnesota Statutes,
3.9section 214.035.

3.10

Sec. 6. GAMBLING CONTROL BOARD

-0-

3.11Licensing Disqualifications; Preliminary
3.12Applications.
3.13$3,000 in fiscal year 2024 and $3,000 in fiscal
3.14year 2025 are base amounts from the lawful
3.15gambling regulation account in the special
3.16revenue fund to the Gambling Control Board
3.17for the licensing disqualification and
3.18preliminary application requirements under
3.19Minnesota Statutes, section 214.035.

3.20

Sec. 7. DEPARTMENT OF EDUCATION

-0-

3.21Licensing Disqualifications; Preliminary
3.22Applications.
3.23$22,000 in fiscal year 2024 and $22,000 in
3.24fiscal year 2025 are base amounts to the
3.25Department of Education for the licensing
3.26disqualification and preliminary application
3.27requirements under Minnesota Statutes,
3.28section 214.035.

3.29 Sec. 8. COMMERCE FRAUD BUREAU; TRANSFER.
3.30 $870,000 in fiscal year 2023 is transferred from the general fund to the insurance fraud
3.31prevention account for five additional peace officers in the Commerce Fraud Bureau. The
3.32base for this transfer is $811,000 in fiscal year 2024 and $811,000 in fiscal year 2025.

4.1ARTICLE 2

4.2COMMERCE POLICY

4.3    Section 1. Minnesota Statutes 2020, section 45.0135, subdivision 2a, is amended to read:
4.4    Subd. 2a. Authorization. (a) The commissioner may appoint peace officers, as defined
4.5in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as
4.6defined in section 626.84, subdivision 1, paragraph (f), known as the Commerce Fraud
4.7Bureau, to conduct investigations, and to make arrests under sections 629.30 and 629.34.
4.8The primary jurisdiction of the law enforcement agency is limited to offenses ~~related to~~
4.9~~insurance fraud~~ with a nexus to insurance-related crimes or financial crimes.
4.10(b) Upon request and at the commissioner's discretion, the Commerce Fraud Bureau
4.11may respond to a law enforcement agency's request to exercise law enforcement duties in
4.12cooperation with the law enforcement agency that has jurisdiction over the particular matter.
4.13(c) The Commerce Fraud Bureau must allocate at least 70 percent of its work to insurance
4.14fraud, as defined in sections 60A.951, subdivision 4, and 609.611.

4.15    Sec. 2. Minnesota Statutes 2020, section 45.0135, subdivision 2b, is amended to read:
4.16    Subd. 2b. Duties. The Commerce Fraud Bureau shall:
4.17(1) review notices and reports ~~of insurance fraud~~ within the Commerce Fraud Bureau's
4.18primary jurisdiction submitted by authorized insurers, their employees, and agents or
4.19producers;
4.20(2) respond to notifications or complaints ~~of suspected insurance fraud~~ within the
4.21Commerce Fraud Bureau's primary jurisdiction generated by other law enforcement agencies,
4.22state or federal governmental units, or any other person;
4.23(3) initiate inquiries and conduct investigations when the bureau has reason to believe
4.24that ~~insurance fraud~~ an offense within the Commerce Fraud Bureau's primary jurisdiction
4.25has been or is being committed; and
4.26(4) report ~~incidents of alleged insurance fraud~~ crimes disclosed by ~~its~~ the Commerce
4.27Fraud Bureau's investigations to appropriate law enforcement agencies, including, but not
4.28limited to, the attorney general, county attorneys, or any other appropriate law enforcement
4.29or regulatory agency, and shall assemble evidence, prepare charges, and otherwise assist
4.30any law enforcement authority having jurisdiction.

5.1    Sec. 3. Minnesota Statutes 2020, section 46.131, subdivision 2, is amended to read:
5.2    Subd. 2. Assessment authority. Each ~~bank, trust company, savings bank, savings~~
5.3~~association, regulated lender, industrial loan and thrift company, credit union, motor vehicle~~
5.4~~sales finance company, debt management services provider, debt settlement services provider,~~
5.5~~insurance premium finance company, and residential PACE administrator, as defined in~~
5.6~~section~~ ~~216C.435, subdivision 10a~~, financial institution governed by chapters 46 to 59A,
5.7216C, and 332 to 332B that is organized under the laws of this state or required to be
5.8administered by the commissioner of commerce shall pay into the state treasury its
5.9proportionate share of the cost of maintaining the Department of Commerce. This subdivision
5.10does not apply to student loan servicers or collection agencies.

5.11    Sec. 4. Minnesota Statutes 2020, section 46.131, subdivision 4, is amended to read:
5.12    Subd. 4. General assessment basis. (a) Assessments shall be made by the commissioner
5.13against each institution within the industry on an equitable basis, according to the total assets
5.14or business volume of each institution as of the end of the previous calendar year.
5.15(b) Assessments against residential PACE administrators, as defined in section 216C.435,
5.16subdivision 10a, must be made by the commissioner according to the total business volume
5.17as of the end of the previous calendar year.

5.18    Sec. 5. Minnesota Statutes 2020, section 46.131, subdivision 11, is amended to read:
5.19    Subd. 11. Financial institutions account; appropriation. (a) The financial institutions
5.20account is created as a separate account in the special revenue fund. Earnings, including
5.21interest, dividends, and any other earnings arising from account assets, must be credited to
5.22the account.
5.23(b) The account consists of funds received from assessments under subdivision 7,
5.24examination fees under subdivision 8, and funds received pursuant to subdivision 10 and
5.25the following provisions: sections 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54,
5.26subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; 48.61, subdivision 7, paragraph
5.27(b); 49.36, subdivision 1; 52.203; 53B.09; 53B.11, subdivision 1; 53C.02; 56.02; 58.10;
5.2858A.045, subdivision 2; ~~and~~ 59A.03; 216C.437, subdivision 12; 332A.04; and 332B.04.
5.29(c) Funds in the account are annually appropriated to the commissioner of commerce
5.30for activities under this section.

6.1    Sec. 6. Minnesota Statutes 2020, section 47.08, is amended to read:
6.247.08 ARTICLES OF INCORPORATION FILED WITH COMMISSIONER.
6.3All persons proposing to incorporate and organize any financial institution, whether
6.4defined or described as such by the laws of the state, shall, before doing any business in the
6.5state as a corporation, ~~and before filing their articles of incorporation with the secretary of~~
6.6~~state or with any other officer with whom the law requires such articles to be filed or~~
6.7~~recorded,~~ file a copy of ~~such~~ the proposed articles of incorporation with the commissioner
6.8of commerce.

6.9    Sec. 7. Minnesota Statutes 2020, section 47.16, subdivision 1, is amended to read:
6.10    Subdivision 1. Filing. The certificate of a corporation must be filed for record with the
6.11~~secretary of state~~ commissioner of commerce. If the ~~secretary of state~~ commissioner of
6.12commerce finds that it conforms to law and that the required fee has been paid, the ~~secretary~~
6.13~~of state~~ commissioner of commerce must record it and certify that fact on it. ~~The secretary~~
6.14~~of state may not accept a certificate for filing unless the certificate also contains the~~
6.15~~endorsement of the commissioner of commerce.~~

6.16    Sec. 8. Minnesota Statutes 2020, section 47.16, subdivision 2, is amended to read:
6.17    Subd. 2. Certificate of authority. If the commissioner of commerce is satisfied that the
6.18corporation has been organized for legitimate purposes, and under such conditions as to
6.19merit and have public confidence, and that all provisions of law applicable to every branch
6.20of business in which, by the terms of its certificate, it is authorized to engage, have been
6.21complied with, the commissioner shall so certify. When the original ~~certificate and the~~
6.22certificate of incorporation ~~from the secretary of state~~ is filed with the commissioner of
6.23commerce, the commissioner shall, within 60 days thereafter, execute and deliver to it a
6.24certificate of authority.

6.25    Sec. 9. Minnesota Statutes 2020, section 47.172, subdivision 2, is amended to read:
6.26    Subd. 2. Effect. The certificate to be filed to accomplish a restated certificate of
6.27incorporation must be entitled "restated certificate of incorporation of (name of financial
6.28corporation)" and must contain a statement that the restated certificate supersedes and takes
6.29the place of the existing certificate of incorporation and all amendments to it. The restated
6.30certificate of incorporation when executed, filed and recorded in the manner prescribed for
6.31certificate of amendment supersedes and takes the place of an existing certificate of
7.1incorporation and amendments to it. ~~The secretary of state upon request must certify the~~
7.2~~restated certificate of incorporation.~~

7.3    Sec. 10. Minnesota Statutes 2020, section 47.28, subdivision 3, is amended to read:
7.4    Subd. 3. Recording. Upon receipt of the fees required for filing and recording amended
7.5articles of incorporation of savings banks, the ~~secretary of state~~ commissioner of commerce
7.6shall record the amended articles of incorporation and certify that fact thereon, whereupon
7.7the conversion of such savings bank into a savings association shall become final and
7.8complete and thereafter said corporation shall have the powers and be subject to the duties
7.9and obligations prescribed by the laws of this state applicable to savings associations.

7.10    Sec. 11. Minnesota Statutes 2020, section 47.30, subdivision 5, is amended to read:
7.11    Subd. 5. Recording. Upon receipt of the fees required for filing and recording amended
7.12articles of incorporation of savings associations, the ~~secretary of state~~ commissioner of
7.13commerce shall record the amended articles of incorporation and certify that fact thereon,
7.14whereupon the conversion of such savings association into a savings bank shall become
7.15final and complete and thereafter the signers of said amended articles and their successors
7.16shall be a corporation, and have the powers and be subject to the duties and obligations
7.17prescribed by the laws of this state applicable to savings banks.

7.18    Sec. 12. Minnesota Statutes 2020, section 48A.15, subdivision 1, is amended to read:
7.19    Subdivision 1. Authorization. (a) A trust company organized under the laws of this
7.20state or a state bank and trust may, after completing the notification procedure required by
7.21this subdivision, establish and maintain a trust service office at any office in this state or of
7.22any other state or national bank. A state bank may, after completing the notification procedure
7.23required by this subdivision, permit a trust company organized under the laws of this state
7.24or a state bank and trust or a national bank in this state that is authorized to exercise trust
7.25powers to establish and maintain a trust service office at any of its banking offices.
7.26(b) The trust company or state bank and trust and a state bank at which a trust service
7.27office is to be established according to this section shall jointly file, on forms provided by
7.28the commissioner, a notification of intent to establish a trust service office. The notification
7.29must be accompanied by a filing fee of $100 payable to the commissioner, to be deposited
7.30in the ~~general fund of the state~~ financial institutions account under section 46.131, subdivision
7.3111. No trust service office shall be established according to this section if disallowed by
7.32order of the commissioner within 30 days of the filing of a complete and acceptable
8.1notification of intent to establish a trust service office. An order of the commissioner to
8.2disallow the establishment of a trust service office under this section is subject to judicial
8.3review under sections 14.63 to 14.69.

8.4    Sec. 13. Minnesota Statutes 2020, section 53.03, subdivision 1, is amended to read:
8.5    Subdivision 1. Application, fee, notice. Any corporation hereafter organized as an
8.6industrial loan and thrift company, shall, after compliance with the requirements set forth
8.7in sections 53.01 and 53.02, file a written application with the Department of Commerce
8.8for a certificate of authorization. A corporation that will not sell or issue thrift certificates
8.9for investment as permitted by this chapter need not comply with subdivision 2b. The
8.10application must be in the form prescribed by the Department of Commerce. The application
8.11must be made in the name of the corporation, executed and acknowledged by an officer
8.12designated by the board of directors of the corporation, requesting a certificate authorizing
8.13the corporation to transact business as an industrial loan and thrift company, at the place
8.14and in the name stated in the application. At the time of filing the application the applicant
8.15shall pay $1,500 filing fee if the corporation will not sell or issue thrift certificates for
8.16investment, and a filing fee of $8,000 if the corporation will sell or issue thrift certificates
8.17for investment. The fees must be ~~turned over by the commissioner to the commissioner of~~
8.18~~management and budget and credited to the general fund~~ collected by the commissioner
8.19and deposited in the financial institutions account under section 46.131, subdivision 11.
8.20The applicant shall also submit a copy of the bylaws of the corporation, its articles of
8.21incorporation and all amendments thereto at that time. An application for powers under
8.22subdivision 2b must also require that a notice of the filing of the application must be
8.23published once within 30 days of the receipt of the form prescribed by the Department of
8.24Commerce, at the expense of the applicant, in a qualified newspaper published in the
8.25municipality in which the proposed industrial loan and thrift company is to be located, or,
8.26if there be none, in a qualified newspaper likely to give notice in the municipality in which
8.27the company is proposed to be located. If the Department of Commerce receives a written
8.28objection to the application from any person within 15 days of the notice having been fully
8.29published, the commissioner shall proceed in the same manner as required under section
8.3046.041, subdivisions 3 and 4, relating to state banks.

8.31    Sec. 14. Minnesota Statutes 2020, section 53.03, subdivision 5, is amended to read:
8.32    Subd. 5. Place of business. Not more than one place of business may be maintained
8.33under any certificate of authorization issued subsequent to the enactment of Laws 1943,
8.34chapter 67, pursuant to the provisions of this chapter, but the Department of Commerce
9.1may issue more than one certificate of authorization to the same corporation upon compliance
9.2with all the provisions of this chapter governing an original issuance of a certificate of
9.3authorization. To the extent that previously filed applicable information remains unchanged,
9.4the applicant need not refile this information, unless requested. The filing fee for a branch
9.5application shall be $500 and the investigation fee $250. An industrial loan and thrift
9.6corporation with deposit liabilities may change one or more of its locations upon the written
9.7approval of the commissioner of commerce. A fee of $100 must accompany each application
9.8to the commissioner for approval to change the location of an established office. An industrial
9.9loan and thrift corporation that does not sell and issue thrift certificates for investment may
9.10change one or more locations by giving 30 days' written notice to the Department of
9.11Commerce which shall promptly amend the certificate of authorization accordingly. No
9.12change in place of business of a company to a location outside of its current trade area or
9.13more than 25 miles from its present location, whichever distance is greater, shall be permitted
9.14under the same certificate unless all of the applicable requirements of this section have been
9.15met. All money collected by the commissioner under this chapter must be deposited into
9.16the financial institutions account under section 46.131, subdivision 11.

9.17    Sec. 15. Minnesota Statutes 2020, section 53C.02, is amended to read:
9.1853C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
9.19(a) No person shall engage in the business of a sales finance company in this state without
9.20a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank,
9.21trust company, savings bank, savings association, or credit union, whether state or federally
9.22chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated
9.23Loan Act authorized to do business in this state shall be required to obtain a license under
9.24sections 53C.01 to 53C.14.
9.25(b) The application for a license shall be in writing, under oath and in the form prescribed
9.26by the commissioner. The application shall contain the name of the applicant; date of
9.27incorporation, if incorporated; the address where the business is or is to be conducted and
9.28similar information as to any branch office of the applicant; the name and resident address
9.29of the owner or partners, or, if a corporation or association, of the directors, trustees and
9.30principal officers, and other pertinent information the commissioner requires.
9.31(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the
9.32following year, or any part thereof shall be the sum of $250 for the principal place of business
9.33of the licensee, and the sum of $125 for each branch of the licensee. Any licensee who
9.34proves to the satisfaction of the commissioner, by affidavit or other proof satisfactory to
10.1the commissioner, that during the 12 calendar months of the immediately preceding fiscal
10.2year, for which the license has been paid that the licensee has not held retail installment
10.3contracts exceeding $15,000 in amount, shall be entitled to a refund of that portion of each
10.4license fee paid in excess of $25. The commissioner shall certify ~~to the commissioner of~~
10.5~~management and budget~~ that the licensee is entitled to a refund, and payment ~~thereof~~ of the
10.6refund shall be made by the commissioner ~~of management and budget~~. The amount necessary
10.7to pay for the refundment of the license fee is appropriated ~~out of the general fund~~ from the
10.8financial institutions account under section 46.131, subdivision 11. All license fees received
10.9by the commissioner under sections 53C.01 to 53C.14 shall be deposited with the
10.10commissioner of management and budget.
10.11(d) Each license shall specify the location of the office or branch and must be
10.12conspicuously displayed there. In case the location be changed, the commissioner shall
10.13endorse the change of location on the license.
10.14(e) Upon the filing of such application, and the payment of the fee, the commissioner
10.15shall issue a license to the applicant to engage in the business of a sales finance company
10.16under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which
10.17shall expire the last day of June next following the date of its issuance. The license shall
10.18not be transferable or assignable. No licensee shall transact any business provided for by
10.19sections 53C.01 to 53C.14 under any other name.
10.20(f) Section 58A.04, subdivisions 2 and 3, apply to this section.

10.21    Sec. 16. Minnesota Statutes 2020, section 55.10, subdivision 1, is amended to read:
10.22    Subdivision 1. Permitting access, removal, or delivery. When a safe deposit box shall
10.23have been hired from any licensed safe deposit company in the name of two or more persons,
10.24including ~~husband and wife~~ a married couple, with the right of access being given to either,
10.25or with access to either or the survivor or survivors of the person, or property is held for
10.26safekeeping by any licensed safe deposit company for two or more persons, including
10.27~~husband and wife~~ a married couple, with the right of delivery being given to either, or with
10.28the right of delivery to either of the survivor or survivors of these persons, any one or more
10.29of these persons, whether the other or others be living or not, shall have the right of access
10.30to the safe deposit box and the right to remove all, or any part, of the contents thereof, or
10.31to have delivered to all or any one of them, or any part of the valuable personal property so
10.32held for safekeeping; and, in case of this access, removal, or delivery, the safe deposit
10.33company shall be exempt from any liability for permitting the access, removal, or delivery.

11.1    Sec. 17. Minnesota Statutes 2020, section 56.02, is amended to read:
11.256.02 APPLICATION FEE.
11.3(a) Application for license shall be in writing, under oath, and in the form prescribed by
11.4the commissioner, and contain the name and the address, both of the residence and place
11.5of business, of the applicant and, if the applicant is a copartnership or association, of every
11.6member thereof, and if a corporation, of each officer and director thereof; also the county
11.7and municipality, with street and number, if any, where the business is to be conducted, and
11.8such further information as the commissioner may require. The applicant at the time of
11.9making application, shall pay to the commissioner the sum of $500 as a fee for investigating
11.10the application, and the additional sum of $250 as an annual license fee for a period
11.11terminating on the last day of the current calendar year. In addition to the annual license
11.12fee, every licensee hereunder shall pay to the commissioner the actual costs of each
11.13examination, as provided for in section 56.10. All ~~moneys~~ money collected by the
11.14commissioner under this chapter shall be ~~turned over to the commissioner of management~~
11.15~~and budget and credited by the commissioner of management and budget to the general~~
11.16~~fund of the state~~ deposited in the financial institutions account under section 46.131,
11.17subdivision 11.
11.18(b) Every applicant shall also prove, in form satisfactory to the commissioner, that the
11.19applicant has available for the operation of the business at the location specified in the
11.20application, liquid assets of at least $50,000.
11.21(c) Section 58A.04, subdivisions 2 and 3, apply to this section.

11.22    Sec. 18. Minnesota Statutes 2020, section 60A.031, subdivision 6, is amended to read:
11.23    Subd. 6. Penalty. (a) Notwithstanding section 72A.05, any person who violates or aids
11.24and abets any violation of a written order issued pursuant to this section may be fined not
11.25more than $10,000 for each day the violation continues for each violation of the order and
11.26the money so recovered shall be paid into the general fund.
11.27(b) For conduct prohibited under chapters 60A to 79, multiple violations of an identical
11.28or substantially similar law, rule, or order shall be considered a single violation under this
11.29section and section 45.027. This paragraph does not apply to willful violations by the insurer.
11.30This paragraph does not apply to violations that the insurer has not taken corrective action
11.31for and that:
11.32(1) cause financial harm to the policyholder;
11.33(2) constitute an unfair method of competition; or
12.1(3) constitute an unfair or deceptive act or practice.
12.2(c) For any applicable penalty imposed by the commissioner under this section, the
12.3commissioner must consider whether corrective action for the consumer was taken promptly
12.4after a violation was discovered or the violation was not part of a pattern or practice, and
12.5shall reduce or eliminate the penalty accordingly.
12.6(d) This subdivision does not apply if a different penalty is specified under law.

12.7    Sec. 19. Minnesota Statutes 2020, section 60A.031, is amended by adding a subdivision
12.8to read:
12.9    Subd. 10. Limitation of enforcement actions or administrative proceedings. An
12.10enforcement action or administrative proceeding brought by the commissioner against a
12.11licensee who violates any law, rule, or order related to the duties and responsibilities entrusted
12.12to the commissioner in chapters 60A to 79, including without limitation the issuance of an
12.13order pursuant to chapters 60A to 79, must be commenced within nine years of the date the
12.14violation occurs unless the violation arises out of a contract that remains in force, in which
12.15case the action or administrative proceeding must be commenced within two years of the
12.16date of the discovery of the violation. If the licensee attempts to conceal a violation, an
12.17enforcement action or administrative proceeding must be brought by the commissioner
12.18within nine years of discovery of the violation by the commissioner.

12.19    Sec. 20. Minnesota Statutes 2020, section 60A.031, is amended by adding a subdivision
12.20to read:
12.21    Subd. 11. Multistate examinations. If the commissioner elects to participate in an
12.22examination of a licensee that involves multiple states, the commissioner is prohibited from
12.23commencing, undertaking, or continuing an examination under this section against the
12.24subject examinee related to the same alleged conduct, including without limitation incurring
12.25or charging any examination costs, unless and until the multistate examination is complete
12.26or Minnesota has formally withdrawn from that examination. With respect to any completed
12.27multistate examination that Minnesota elected to participate in, the commissioner is prohibited
12.28from taking separate action against a licensee that was subject to the multistate examination
12.29unless the commissioner follows the procedures set forth in this section and section 60A.033,
12.30as applicable.
12.31EFFECTIVE DATE.This section is effective August 1, 2022, and applies to
12.32examinations and investigations initiated on or after that date.

13.1    Sec. 21. Minnesota Statutes 2020, section 60A.033, subdivision 8, is amended to read:
13.2    Subd. 8. Costs. All bills for examination costs being charged to an insurance company
13.3pursuant to subdivision 5 or section 60A.031, subdivision 3, paragraph (c), must:
13.4(1) be itemized and, with respect to examiner billings, contain activity detail on a quarterly
13.5hourly basis by an individual examiner and disclose the applicable hourly billing rates,
13.6together with per-charge detail for related travel or other expenses; and
13.7(2) provide a due date no less than 30 60 days from receipt of the bill.
13.8EFFECTIVE DATE.This section is effective July 1, 2022.

13.9    Sec. 22. Minnesota Statutes 2020, section 60A.033, subdivision 9, is amended to read:
13.10    Subd. 9. Completion of examination. An examination under section 60A.031 must not
13.11exceed 18 months from the date the commissioner receives the insurance company's first
13.12submission pursuant to a scheduling order, unless:
13.13(1) the commissioner determines that there has been a material lack of cooperation by
13.14the insurance company and advises the company in writing of the specific instances
13.15demonstrating a lack of cooperation;
13.16(2) the examination is a multistate examination; or
13.17(3) the commissioner determines that additional time is necessary to complete the
13.18examination and the commissioner notifies the insurance company in writing of the reasons
13.19why the examination requires additional time.
13.20EFFECTIVE DATE.This section is effective July 1, 2022.

13.21    Sec. 23. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision
13.22to read:
13.23    Subd. 11. Informal disposition. (a) The commissioner must make an attempt to
13.24informally resolve any alleged violations of law identified during the examination or
13.25investigation. An attempt to informally resolve a violation may consist of a consent order,
13.26nonpublic letter of reprimand, or other informal resolution or disposition.
13.27(b) The terms of a consent order or other informal disposition that prescribes compliance
13.28requirements must be consistent with the requirements of Minnesota law.
13.29EFFECTIVE DATE.This section is effective July 1, 2022.

14.1    Sec. 24. Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision
14.2to read:
14.3    Subd. 12. Report to the legislature. Each year by February 1, the commissioner must
14.4report the following information to the chairs and ranking minority members of the house
14.5of representatives and senate committees having jurisdiction over commerce:
14.6(1) a listing of the number of pending market conduct exams and the year the exams
14.7were commenced;
14.8(2) the number of exams closed during the prior year and the current total of costs charged
14.9to the companies for each exam;
14.10(3) whether the exam is being conducted, in whole or in part, by third-party examiners;
14.11and
14.12(4) other information that the chairs or ranking minority members may reasonably
14.13request, subject to the limitations of section 60A.031, subdivision 4, paragraph (f).
14.14EFFECTIVE DATE.This section is effective July 1, 2022.

14.15    Sec. 25. Minnesota Statutes 2020, section 60A.954, subdivision 1, is amended to read:
14.16    Subdivision 1. Establishment. An insurer shall institute, implement, and maintain an
14.17antifraud plan. For the purpose of this section, the term insurer does not include reinsurers,
14.18the Workers' Compensation Reinsurance Association, self-insurers, and excess insurers.
14.19Within 30 days after instituting or materially modifying an antifraud plan, the insurer shall
14.20notify the commissioner in writing. The notice must include the name of the person
14.21responsible for administering the plan. An antifraud plan shall establish procedures to:
14.22(1) prevent insurance fraud, including: internal fraud involving the insurer's officers,
14.23employees, or agents; fraud resulting from misrepresentations on applications for insurance;
14.24and claims fraud;
14.25(2) report insurance fraud to appropriate law enforcement authorities; and
14.26(3) cooperate with the prosecution of insurance fraud cases.

14.27    Sec. 26. [60B.335] FEDERAL HOME LOAN BANK RIGHTS; COLLATERAL
14.28PLEDGED BY INSURER-MEMBERS.
14.29    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
14.30the meanings given.
15.1(b) "Federal home loan bank" means a federal home loan bank established under the
15.2federal Home Loan Bank Act, United States Code, title 12, section 1421 et seq.
15.3(c) "Insurer-member" means an insurer that is a member of a federal home loan bank.
15.4    Subd. 2. Certain rights provided. (a) Notwithstanding any law to the contrary, after
15.5the seventh day following the filing of a delinquency proceeding, a federal home loan bank
15.6must not be stayed or prohibited from exercising the federal home loan bank's rights regarding
15.7collateral pledged by an insurer-member.
15.8(b) If a federal home loan bank exercises rights regarding collateral pledged by an
15.9insurer-member subject to a delinquency proceeding, the federal home loan bank must
15.10repurchase any outstanding capital stock that is in excess of the amount of federal home
15.11loan bank stock that the insurer-member is required to hold as a minimum investment, to
15.12the extent the federal home loan bank determines in good faith that the repurchase is (1)
15.13permissible under applicable laws, regulations, regulatory obligations, and the federal home
15.14loan bank's capital plan; and (2) consistent with the federal home loan bank's current capital
15.15stock practices applicable to the federal home loan bank's entire membership.
15.16    Subd. 3. Process and timeline required. Following the appointment of a receiver for
15.17an insurer-member, the federal home loan bank must, within ten business days after the
15.18date a request is received from the receiver, provide a process and establish a timeline for:
15.19(1) release of collateral that exceeds the amount required to support secured obligations
15.20remaining after any repayment of loans, as determined in accordance with the applicable
15.21agreements between the federal home loan bank and the insurer-member;
15.22(2) release of any of the insurer-member's collateral remaining in the federal home loan
15.23bank's possession following repayment in full of the insurer-member's outstanding secured
15.24obligations;
15.25(3) payment of fees owed by the insurer-member and the operation of the
15.26insurer-member's deposits and other accounts with the federal home loan bank; and
15.27(4) possible redemption or repurchase of federal home loan bank stock or excess stock
15.28of any class that an insurer-member is required to own.
15.29    Subd. 4. Options; renew or restructure. Upon request from a receiver, the federal
15.30home loan bank must provide the options available for an insurer-member subject to a
15.31delinquency proceeding to renew or restructure a loan to defer associated prepayment fees,
15.32subject to (1) market conditions, (2) the terms of any loans outstanding to the insurer-member,
16.1(3) the federal home loan bank's applicable policies, and (4) the federal home loan bank's
16.2compliance with federal laws and regulations.
16.3    Subd. 5. Void transfers prohibited. (a) Notwithstanding any law to the contrary, the
16.4receiver for an insurer-member is prohibited from voiding any transfer of, or any obligation
16.5to transfer, money or any other property arising under or in connection with: (1) any federal
16.6home loan bank security agreement; (2) any pledge, security, collateral, or guarantee
16.7agreement; or (3) any other similar arrangement or credit enhancement relating to a federal
16.8home loan bank security agreement made in the ordinary course of business and in
16.9compliance with the applicable federal home loan bank agreement.
16.10(b) A transfer may be voided under this section if the transfer was made with intent to
16.11hinder, delay, or defraud the insurer-member, the receiver for the insurer-member, or existing
16.12or future creditors.
16.13(c) This section does not affect a receiver's rights regarding advances to an
16.14insurer-member in delinquency proceedings pursuant to Code of Federal Regulations, title
16.1512, part 1266.4.
16.16EFFECTIVE DATE.This section is effective the day following final enactment and
16.17applies to delinquency proceedings filed on or after that date.

16.18    Sec. 27. Minnesota Statutes 2020, section 65B.84, subdivision 1, is amended to read:
16.19    Subdivision 1. Program described; commissioner's duties; appropriation. (a) The
16.20commissioner of commerce shall:
16.21(1) develop and sponsor the implementation of statewide plans, programs, and strategies
16.22to combat automobile theft, improve the administration of the automobile theft laws, and
16.23provide a forum for identification of critical problems for those persons dealing with
16.24automobile theft;
16.25(2) coordinate the development, adoption, and implementation of plans, programs, and
16.26strategies relating to interagency and intergovernmental cooperation with respect to
16.27automobile theft enforcement;
16.28(3) annually audit the plans and programs that have been funded in whole or in part to
16.29evaluate the effectiveness of the plans and programs and withdraw funding should the
16.30commissioner determine that a plan or program is ineffective or is no longer in need of
16.31further financial support from the fund;
16.32(4) develop a plan of operation including:
17.1(i) an assessment of the scope of the problem of automobile theft, including areas of the
17.2state where the problem is greatest;
17.3(ii) an analysis of various methods of combating the problem of automobile theft;
17.4(iii) a plan for providing financial support to combat automobile theft;
17.5(iv) a plan for eliminating car hijacking; and
17.6(v) an estimate of the funds required to implement the plan; and
17.7(5) distribute money, in consultation with the commissioner of public safety, pursuant
17.8to subdivision 3 from the automobile theft prevention special revenue account for automobile
17.9theft prevention activities, including:
17.10(i) paying the administrative costs of the program;
17.11(ii) providing financial support to the State Patrol and local law enforcement agencies
17.12for automobile theft enforcement teams;
17.13(iii) providing financial support to state or local law enforcement agencies for programs
17.14designed to reduce the incidence of automobile theft and for improved equipment and
17.15techniques for responding to automobile thefts;
17.16(iv) providing financial support to local prosecutors for programs designed to reduce
17.17the incidence of automobile theft;
17.18(v) providing financial support to judicial agencies for programs designed to reduce the
17.19incidence of automobile theft;
17.20(vi) providing financial support for neighborhood or community organizations or business
17.21organizations for programs designed to reduce the incidence of automobile theft and to
17.22educate people about the common methods of automobile theft, the models of automobiles
17.23most likely to be stolen, and the times and places automobile theft is most likely to occur;
17.24and
17.25(vii) providing financial support for automobile theft educational and training programs
17.26for state and local law enforcement officials, driver and vehicle services exam and inspections
17.27staff, and members of the judiciary.
17.28(b) The commissioner may not spend in any fiscal year more than ten percent of the
17.29money in the fund for the program's administrative and operating costs. The commissioner
17.30is annually appropriated and must distribute the amount of the proceeds credited to the
17.31automobile theft prevention special revenue account each year, less the transfer of $1,300,000
18.1each year to the insurance fraud prevention account described in section 297I.11, subdivision
18.22.
18.3(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
18.4in the auto theft prevention account to the insurance fraud prevention account under section
18.545.0135, subdivision 6.
18.6(d) The commissioner must establish a library of equipment to combat automobile-related
18.7theft offenses. The equipment must be available to all law enforcement agencies upon
18.8request to support law enforcement agency efforts to combat automobile theft.

18.9    Sec. 28. Minnesota Statutes 2020, section 65B.84, subdivision 2, is amended to read:
18.10    Subd. 2. Annual report. By ~~January 15 of~~ September 30 each year, the commissioner
18.11shall report to the governor and the chairs and ranking minority members of the house of
18.12representatives and senate committees having jurisdiction over the Departments of Commerce
18.13and Public Safety on the activities and expenditures in the preceding year.

18.14    Sec. 29. [72A.071] REBATES.
18.15    Subdivision 1. Prohibition. Notwithstanding any law to the contrary, insurers and
18.16producers are prohibited from knowingly permitting or offering to make or making any life
18.17insurance policy or annuity, or policy of accident and sickness insurance, or health plan or
18.18other insurance, or agreement as to such contract other than as plainly expressed in the
18.19policy issued thereon, or paying or allowing, or giving or offering to pay, allow, or give,
18.20directly or indirectly, as inducement to such policy, any rebate of premiums payable on the
18.21policy, or any special favor or advantage in the dividends or other benefits thereon, or any
18.22valuable consideration or inducement whatever not specified in the policy; or giving, or
18.23selling, or purchasing or offering to give, sell, or purchase as inducement to such policy or
18.24annuity or in connection therewith, any stocks, bonds or other securities of any company
18.25or other corporation, association or partnership, or any dividends or profits accrued thereon,
18.26or anything of value whatsoever not specified in the policy.
18.27    Subd. 2. Practices not considered discrimination or rebates. (a) Nothing in subdivision
18.281, section 72A.20, subdivisions 8 or 9, or section 72A.12, subdivisions 3 or 4, shall be
18.29construed as including within the definition of discrimination or rebates any of the following
18.30practices:
18.31(1) in the case of life insurance policies or annuities, paying bonuses to policyholders
18.32or otherwise abating their premiums in whole or in part out of surplus accumulated from
19.1nonparticipating insurance, provided that any such bonuses or abatement of premiums shall
19.2be fair and equitable to policyholders and for the best interests of the company and its
19.3policyholders;
19.4(2) in the case of life insurance policies issued on the industrial debit plan, making
19.5allowance to policyholders who have continuously for a specified period made premium
19.6payments directly to an office of the insurer in an amount that fairly represents the saving
19.7in collection expenses;
19.8(3) readjusting the rate of premium for a group insurance policy based on the loss or
19.9expense thereunder, at the end of the first or any subsequent policy year of insurance
19.10thereunder, which may be made retroactive only for such policy year;
19.11(4) engaging in an arrangement that would not violate United States Code 1972, title
19.1212, section 106, as interpreted by the Board of Governors of the Federal Reserve System,
19.13or United States Code, title 12, section 1464(q); or
19.14(5) the offer or provision by insurers or producers, by or through employees, affiliates,
19.15or third-party representatives, of value-added products or services at no or reduced cost
19.16when such products or services are not specified in the policy of insurance if the product
19.17or service relates to the insurance coverage and is designed to satisfy one or more of the
19.18following:
19.19(i) provide loss mitigation or loss control;
19.20(ii) reduce claim costs or claim settlement costs;
19.21(iii) provide education about liability risks or risk of loss to persons or property;
19.22(iv) monitor or assess risk, identify sources of risk, or develop strategies for eliminating
19.23or reducing risk;
19.24(v) enhance health;
19.25(vi) enhance financial wellness through items such as education or financial planning
19.26services;
19.27(vii) provide post-loss services;
19.28(viii) incent behavioral changes to improve the health or reduce the risk of death or
19.29disability of a customer, a policyholder, potential policyholder, certificate holder, potential
19.30certificate holder, insured, potential insured, or applicant; or
19.31(ix) assist in the administration of the employee or retiree benefit insurance coverage.
20.1(b) The cost to the insurer or producer offering the product or service to a customer must
20.2be reasonable in comparison to that customer's premiums or insurance coverage for the
20.3policy class.
20.4(c) If the insurer or producer is providing the product or service offered, the insurer or
20.5producer must ensure that upon request the customer is provided with contact information
20.6to assist the customer with questions regarding the product or service.
20.7(d) The availability of the value-added product or service must be based on documented
20.8objective criteria and offered in a manner that is not unfairly discriminatory. The documented
20.9criteria must be maintained by the insurer or producer and produced upon request of the
20.10commissioner.
20.11(e) If an insurer or producer does not have sufficient evidence but has a good-faith belief
20.12that the product or service meets the criteria of paragraph (b), clause (5), items (i) through
20.13(ix), the insurer or producer may provide the product or service in a manner that is not
20.14unfairly discriminatory as part of a pilot or testing program for no more than one year. An
20.15insurer or producer must notify the commissioner of such a pilot or testing program offered
20.16to consumers in this state prior to launching and may proceed with the program unless the
20.17commissioner objects within 45 days of notice.
20.18    Subd. 3. Exceptions. (a) An insurer or producer may:
20.19(1) offer or give noncash gifts, items, or services, including meals to or charitable
20.20donations on behalf of a customer, in connection with the marketing, sale, purchase, or
20.21retention of contracts of insurance, as long as the cost does not exceed the lesser of five
20.22percent of the current or projected policyholder premium or $250 per policy year per term.
20.23The offer must be made in a manner that is not unfairly discriminatory. The customer may
20.24not be required to purchase, continue to purchase, or renew a policy in exchange for the
20.25gift, item, or service;
20.26(2) offer or give noncash gifts, items, or services including meals to or charitable
20.27donations on behalf of a customer, to commercial or institutional customers in connection
20.28with the marketing, sale, purchase, or retention of contracts of insurance, as long as the cost
20.29is reasonable in comparison to the premium or proposed premium and the cost of the gift
20.30or service is not included in any amounts charged to another person or entity. The offer
20.31must be made in a manner that is not unfairly discriminatory. The customer may not be
20.32required to purchase, continue to purchase, or renew a policy in exchange for the gift, item,
20.33or service; and
21.1(3) conduct raffles or drawings to the extent permitted by state law, as long as there is
21.2no financial cost to entrants to participate, the drawing or raffle does not obligate participants
21.3to purchase insurance, the prizes do not exceed the lesser of five percent of the current or
21.4projected policyholder premium or $500, and the drawing or raffle is open to the public.
21.5The raffle or drawing must be offered in a manner that is not unfairly discriminatory. The
21.6customer may not be required to purchase, continue to purchase, or renew a policy in
21.7exchange for the gift, item, or service.
21.8(b) An insurer, producer, or representative of either may not offer or provide insurance
21.9at no cost as an inducement to the purchase of another policy.
21.10EFFECTIVE DATE.This section is effective January 1, 2023.

21.11    Sec. 30. Minnesota Statutes 2020, section 72A.12, subdivision 4, is amended to read:
21.12    Subd. 4. Discrimination~~; rebates~~. ~~(a)~~ No life insurance company doing business in this
21.13state shall make or permit any distinction or discrimination in favor of individuals between
21.14insurants of the same class and equal expectation of life in the amount or payment of
21.15premiums or rates charged for policies of life or endowment insurance, or in the dividends
21.16or other benefits payable thereon, or in any other of the terms and conditions of the contracts
21.17it makes; nor shall any such company or agent thereof make any contract of insurance or
21.18agreement as to such contract other than as plainly expressed in the policy issued thereon;
21.19~~nor shall any such company or any officer, agent, solicitor, or representative thereof pay,~~
21.20~~allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to insurance,~~
21.21~~any rebate of premium payable on the policy, or any special favor or advantage in the~~
21.22~~dividends or other benefits to accrue thereon or any paid employment or contract for services~~
21.23~~of any kind, or any valuable consideration or inducement whatever not specified in the~~
21.24~~policy contract of insurance~~.
21.25Any violation of the provisions of this subdivision shall be a misdemeanor and punishable
21.26as such.
21.27~~(b) A promotional advertising item of $25 or less or a gift of $25 or less per year is not~~
21.28~~a rebate if the receipt of the item or gift is not conditioned upon purchase of an insurance~~
21.29~~policy or product.~~
21.30EFFECTIVE DATE.This section is effective January 1, 2023.

22.1    Sec. 31. Minnesota Statutes 2020, section 72A.20, subdivision 11, is amended to read:
22.2    Subd. 11. Application to certain sections. Violating any provision of the following
22.3sections of this chapter not set forth in this section shall constitute an unfair method of
22.4competition and an unfair and deceptive act or practice: sections 72A.12, subdivisions 2,
22.53, and 4, 72A.16, subdivision 2, 72A.03 and 72A.04, ~~72A.08, subdivision 1, as modified~~
22.6~~by sections~~ ~~72A.08, subdivision 4~~, 72A.071, 72A.201, and sections 72A.49 to 72A.505.
22.7EFFECTIVE DATE.This section is effective January 1, 2023.

22.8    Sec. 32. Minnesota Statutes 2020, section 72A.328, subdivision 1, is amended to read:
22.9    Subdivision 1. Definitions. (a) For purposes of this section the following terms have
22.10the meanings given.
22.11(b) "Affinity program" means a an organization or group formed around a common
22.12interest or specified purpose, or a group of individuals who are members of an entity that
22.13offers individuals benefits based on their membership in that entity. Affinity program does
22.14not include an entity that obtains group insurance, as defined in section 60A.02, subdivision
22.1528, or risk retention groups as defined in section 60E.02, subdivision 12.
22.16(c) "Policy" means an individually underwritten policy of private passenger vehicle
22.17insurance, as defined in section 65B.001, subdivision 2, an individually underwritten policy
22.18of homeowner's insurance, as defined in section 65A.27, subdivision 4, or an individually
22.19underwritten policy issued under section 60A.06, subdivision 1, clause (10).

22.20    Sec. 33. Minnesota Statutes 2020, section 72A.328, subdivision 2, is amended to read:
22.21    Subd. 2. Discount. An insurance company may offer an individual a discount or other
22.22benefit relating to a policy based on the individual's membership in an affinity program if:
22.23(1) the benefit or discount is ~~based on an actuarial justification~~ calculated in accordance
22.24with section 70A.04; and
22.25(2) ~~the insurance company offers the benefit or discount to~~ all members of the affinity
22.26program are eligible for the discount or benefit.

23.1    Sec. 34. Minnesota Statutes 2020, section 80A.61, is amended to read:
23.280A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
23.3FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
23.4REPRESENTATIVE.
23.5    (a) Application for initial registration by broker-dealer, agent, investment adviser,
23.6or investment adviser representative. A person shall register as a broker-dealer, agent,
23.7investment adviser, or investment adviser representative by filing an application and a
23.8consent to service of process complying with section 80A.88, and paying the fee specified
23.9in section 80A.65 and any reasonable fees charged by the designee of the administrator for
23.10processing the filing. The application must contain:
23.11    (1) the information or record required for the filing of a uniform application; and
23.12    (2) upon request by the administrator, any other financial or other information or record
23.13that the administrator determines is appropriate.
23.14    (b) Amendment. If the information or record contained in an application filed under
23.15subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
23.16shall promptly file a correcting amendment.
23.17    (c) Effectiveness of registration. If an order is not in effect and a proceeding is not
23.18pending under section 80A.67, registration becomes effective at noon on the 45th day after
23.19a completed application is filed, unless the registration is denied. A rule adopted or order
23.20issued under this chapter may set an earlier effective date or may defer the effective date
23.21until noon on the 45th day after the filing of any amendment completing the application.
23.22    (d) Registration renewal. A registration is effective until midnight on December 31 of
23.23the year for which the application for registration is filed. Unless an order is in effect under
23.24section 80A.67, a registration may be automatically renewed each year by filing such records
23.25as are required by rule adopted or order issued under this chapter, by paying the fee specified
23.26in section 80A.65, and by paying costs charged by the designee of the administrator for
23.27processing the filings.
23.28    (e) Additional conditions or waivers. A rule adopted or order issued under this chapter
23.29may impose such other conditions, not inconsistent with the National Securities Markets
23.30Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
23.31part, specific requirements in connection with registration as are in the public interest and
23.32for the protection of investors.
24.1(f) Funding portal registration. A funding portal that has its principal place of business
24.2in the state of Minnesota shall register with the state of Minnesota by filing with the
24.3administrator a copy of the information or record required for the filing of an application
24.4for registration as a funding portal in the manner established by the Securities and Exchange
24.5Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
24.6any rule adopted or order issued, and any amendments thereto.
24.7    (g) Application for investment adviser representative registration.
24.8    (1) The application for initial registration as an investment adviser representative pursuant
24.9to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
24.10Industry Registration or Transfer) in accordance with the form instructions and by filing
24.11the form U-4 with the IARD. The application for initial registration must also include the
24.12following:
24.13    (i) proof of compliance by the investment adviser representative with the examination
24.14requirements of:
24.15    (A) the Uniform Investment Adviser Law Examination (Series 65); or
24.16    (B) ~~the General Securities Representative Examination (Series 7) and~~ the Uniform
24.17Combined State Law Examination (Series 66);
24.18    (ii) any other information the administrator may reasonably require.
24.19    (2) The application for the annual renewal registration as an investment adviser
24.20representative shall be filed with the IARD.
24.21    (3)(i) The investment adviser representative is under a continuing obligation to update
24.22information required by Form U-4 as changes occur;
24.23    (ii) An investment adviser representative and the investment adviser must file promptly
24.24with the IARD any amendments to the representative's Form U-4; and
24.25    (iii) An amendment will be considered to be filed promptly if the amendment is filed
24.26within 30 days of the event that requires the filing of the amendment.
24.27    (4) An application for initial or renewal of registration is not considered filed for purposes
24.28of section 80A.58 until the required fee and all required submissions have been received
24.29by the administrator.
24.30    (5) The application for withdrawal of registration as an investment adviser representative
24.31pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
25.1(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
25.2with the IARD.

25.3    Sec. 35. Minnesota Statutes 2020, section 80C.05, subdivision 2, is amended to read:
25.4    Subd. 2. Commissioner's powers. The commissioner shall have power to place such
25.5conditions, limitations, and restrictions on any registration as may be necessary to carry out
25.6the purposes of sections 80C.01 to 80C.22. Upon compliance with the provisions of sections
25.780C.01 to 80C.22 and other requirements of the commissioner, and if the commissioner
25.8finds no ground for denial of the registration, the commissioner shall register the franchise.
25.9Registration ~~shall be by entry in a book called Register of Franchises, which entry~~ shall
25.10show the franchise registered and for whom registered, and shall specify the conditions,
25.11limitations, and restrictions upon such registration, if any, or shall make proper reference
25.12to a formal order of the commissioner on file showing such conditions, limitations, and
25.13restrictions. The registration shall become effective upon issuance by the commissioner of
25.14an order for registration.

25.15    Sec. 36. Minnesota Statutes 2020, section 80E.13, is amended to read:
25.1680E.13 UNFAIR PRACTICES BY MANUFACTURERS, DISTRIBUTORS,
25.17FACTORY BRANCHES.
25.18It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch
25.19to engage in any of the following practices directly or through an entity that it controls or
25.20is controlled by:
25.21(a) delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or
25.22accessories in reasonable time and in reasonable quantity relative to the new motor vehicle
25.23dealer's facilities and sales potential in the dealer's relevant market area, after having accepted
25.24an order from a new motor vehicle dealer having a franchise for the retail sale of any new
25.25motor vehicle sold or distributed by the manufacturer or distributor, if the new motor vehicle
25.26or new motor vehicle parts or accessories are publicly advertised as being available for
25.27delivery or actually being delivered. This clause is not violated, however, if the failure is
25.28caused by acts or causes beyond the control of the manufacturer;
25.29(b) refuse to disclose to any new motor vehicle dealer handling the same line make, the
25.30manner and mode of distribution of that line make within the relevant market area;
25.31(c) obtain money, goods, service, or any other benefit from any other person with whom
25.32the dealer does business, on account of, or in relation to, the transaction between the dealer
26.1and the other person, other than for compensation for services rendered, unless the benefit
26.2is promptly accounted for, and transmitted to, the new motor vehicle dealer;
26.3(d) increase prices of new motor vehicles which the new motor vehicle dealer had ordered
26.4for private retail consumers prior to the dealer's receiving the written official price increase
26.5notification. A sales contract signed by a private retail consumer shall constitute evidence
26.6of each order if the vehicle is in fact delivered to that customer. In the event of manufacturer
26.7price reductions, the amount of any reduction received by a dealer shall be passed on to the
26.8private retail consumer by the dealer if the retail price was negotiated on the basis of the
26.9previous higher price to the dealer;
26.10(e) offer any refunds or other types of inducements to any new motor vehicle dealer for
26.11the purchase of new motor vehicles of a certain line make without making the same offer
26.12to all other new motor vehicle dealers in the same line make within geographic areas
26.13reasonably determined by the manufacturer;
26.14(f) release to any outside party, except under subpoena or in an administrative or judicial
26.15proceeding involving the manufacturer or dealer, any business, financial, or personal
26.16information which may be provided by the dealer to the manufacturer, without the express
26.17written consent of the dealer or unless pertinent to judicial or governmental administrative
26.18proceedings or to arbitration proceedings of any kind;
26.19(g) deny any new motor vehicle dealer the right of free association with any other new
26.20motor vehicle dealer for any lawful purpose;
26.21(h) unfairly discriminate among its new motor vehicle dealers with respect to warranty
26.22reimbursement or authority granted its new vehicle dealers to make warranty adjustments
26.23with retail customers;
26.24(i) compete with a new motor vehicle dealer in the same line make operating under an
26.25agreement or franchise from the same manufacturer, distributor, or factory branch. A
26.26manufacturer, distributor, or factory branch is considered to be competing when it has an
26.27ownership interest, other than a passive interest held for investment purposes, in a dealership
26.28of its line make ~~located within the~~ in this state, or in a dealership of a competing line make
26.29in this state. A manufacturer, distributor, or factory branch shall not, however, be deemed
26.30to be competing when operating a dealership, either temporarily or for a reasonable period,
26.31which is for sale to any qualified independent person at a fair and reasonable price, or when
26.32involved in a bona fide relationship in which an independent person has made a significant
26.33investment subject to loss in the dealership and can reasonably expect to acquire full
27.1ownership and full management and operational control of the dealership within a reasonable
27.2time on reasonable terms and conditions;
27.3(j) prevent a new motor vehicle dealer from transferring or assigning a new motor vehicle
27.4dealership to a qualified transferee. There shall be no transfer, assignment of the franchise,
27.5or major change in the executive management of the dealership, except as is otherwise
27.6provided in sections 80E.01 to 80E.17, without consent of the manufacturer, which shall
27.7not be withheld without good cause. In determining whether good cause exists for
27.8withholding consent to a transfer or assignment, the manufacturer, distributor, factory
27.9branch, or importer has the burden of proving that the transferee is a person who is not of
27.10good moral character or does not meet the franchisor's existing and reasonable capital
27.11standards and, considering the volume of sales and service of the new motor vehicle dealer,
27.12reasonable business experience standards in the market area. Denial of the request must be
27.13in writing and delivered to the new motor vehicle dealer within 60 days after the manufacturer
27.14receives the completed application customarily used by the manufacturer, distributor, factory
27.15branch, or importer for dealer appointments. If a denial is not sent within this period, the
27.16manufacturer shall be deemed to have given its consent to the proposed transfer or change.
27.17In the event of a proposed sale or transfer of a franchise, the manufacturer, distributor,
27.18factory branch, or importer shall be permitted to exercise a right of first refusal to acquire
27.19the franchisee's assets or ownership if:
27.20(1) the franchise agreement permits the manufacturer, distributor, factory branch, or
27.21importer to exercise a right of first refusal to acquire the franchisee's assets or ownership
27.22in the event of a proposed sale or transfer;
27.23(2) the proposed transfer of the dealership or its assets is of more than 50 percent of the
27.24ownership or assets;
27.25(3) the manufacturer, distributor, factory branch, or importer notifies the dealer in writing
27.26within 60 days of its receipt of the complete written proposal for the proposed sale or transfer
27.27on forms generally utilized by the manufacturer, distributor, factory branch, or importer for
27.28such purposes and containing the information required therein and all documents and
27.29agreements relating to the proposed sale or transfer;
27.30(4) the exercise of the right of first refusal will result in the dealer and dealer's owners
27.31receiving the same or greater consideration with equivalent terms of sale as is provided in
27.32the documents and agreements submitted to the manufacturer, distributor, factory branch,
27.33or importer under clause (3);
28.1(5) the proposed change of 50 percent or more of the ownership or of the dealership
28.2assets does not involve the transfer or sale of assets or the transfer or issuance of stock by
28.3the dealer or one or more dealer owners to a family member, including a spouse, child,
28.4stepchild, grandchild, spouse of a child or grandchild, brother, sister, or parent of the dealer
28.5owner; to a manager who has been employed in the dealership for at least four years and is
28.6otherwise qualified as a dealer operator; or to a partnership or corporation owned and
28.7controlled by one or more of such persons; and
28.8(6) the manufacturer, distributor, factory branch, or importer agrees to pay the reasonable
28.9expenses, including reasonable attorney fees, which do not exceed the usual customary and
28.10reasonable fees charged for similar work done for other clients incurred by the proposed
28.11new owner and transferee before the manufacturer, distributor, factory branch, or importer
28.12exercises its right of first refusal, in negotiating and implementing the contract for the
28.13proposed change of ownership or transfer of dealership assets. However, payment of such
28.14expenses and attorney fees shall not be required if the dealer has not submitted or caused
28.15to be submitted an accounting of those expenses within 20 days after the dealer's receipt of
28.16the manufacturer, distributor, factory branch, or importer's written request for such an
28.17accounting. The manufacturer, distributor, factory branch, or importer may request such an
28.18accounting before exercising its right of first refusal. The obligation created under this clause
28.19is enforceable by the transferee;
28.20(k) threaten to modify or replace or modify or replace a franchise with a succeeding
28.21franchise that would adversely alter the rights or obligations of a new motor vehicle dealer
28.22under an existing franchise or that substantially impairs the sales or service obligations or
28.23investments of the motor vehicle dealer;
28.24(l) unreasonably deny the right to acquire factory program vehicles to any dealer holding
28.25a valid franchise from the manufacturer to sell the same line make of vehicles, provided
28.26that the manufacturer may impose reasonable restrictions and limitations on the purchase
28.27or resale of program vehicles to be applied equitably to all of its franchised dealers. For the
28.28purposes of this paragraph, "factory program vehicle" has the meaning given the term in
28.29section 80E.06, subdivision 2;
28.30(m) except as provided in paragraph (n), fail or refuse to offer to its same line make
28.31franchised dealers all models manufactured for that line make, ~~other than~~ including alternative
28.32fuel vehicles as defined in section 216C.01, subdivision 1b. Failure to offer a model is not
28.33a violation of this section if the failure is not arbitrary and is due to a lack of manufacturing
28.34capacity, a strike, labor difficulty, or other cause over which the manufacturer, distributor,
28.35or factory branch has no control;
29.1(n) require a dealer to pay an extra fee, or remodel, renovate, or recondition the dealer's
29.2existing facilities, or purchase unreasonable advertising displays, training, tools, or other
29.3materials, or to require the dealer to establish exclusive facilities or dedicated personnel as
29.4a prerequisite to receiving a model or a series of vehicles. A manufacturer, distributor, or
29.5factory branch may require a dealer to comply with reasonable requirements for the sale
29.6and service of an alternative fuel vehicle or to serve an alternative fuel vehicle customer;
29.7(o) require a dealer by program, incentive provision, or otherwise to adhere to
29.8performance standards that are not applied uniformly to other similarly situated dealers.
29.9A performance standard, sales objective, or program for measuring dealership performance
29.10that may have a material effect on a dealer, including the dealer's right to payment under
29.11any incentive or reimbursement program, and the application of the standard or program
29.12by a manufacturer, distributor, or factory branch must be fair, reasonable, equitable, and
29.13based on accurate information. Upon written request by any of its franchised dealers located
29.14within Minnesota, a manufacturer, distributor, or factory branch must provide the method
29.15or formula used by the manufacturer in establishing the sales volumes for receiving a rebate
29.16or incentive and the specific calculations for determining the required sales volumes of the
29.17inquiring dealer and any of the manufacturer's other Minnesota-franchised new motor vehicle
29.18dealers of the same line-make located within 75 miles of the inquiring dealer. Nothing
29.19contained in this section requires a manufacturer, distributor, or factory branch to disclose
29.20confidential business information of any of its franchised dealers or the required numerical
29.21sales volumes that any of its franchised dealers must attain to receive a rebate or incentive.
29.22An inquiring dealer may file a civil action as provided in section 80E.17 without a showing
29.23of injury if a manufacturer, distributor, or factory branch fails to make the disclosure required
29.24by this section.
29.25A manufacturer, distributor, or factory branch has the burden of proving that the performance
29.26standard, sales objective, or program for measuring dealership performance is fair, reasonable,
29.27and uniformly applied under this section;
29.28(p) assign or change a dealer's area of sales effectiveness arbitrarily or without due regard
29.29to the present pattern of motor vehicle sales and registrations within the dealer's market.
29.30The manufacturer, distributor, or factory branch must provide at least 90 days' notice of the
29.31proposed change. The change may not take effect if the dealer commences a civil action
29.32within the 90 days' notice period to determine whether the manufacturer, distributor, or
29.33factory branch met its obligations under this section. The burden of proof in such an action
29.34shall be on the manufacturer or distributor. In determining at the evidentiary hearing whether
29.35a manufacturer, distributor, or factory branch has assigned or changed the dealer's area of
30.1sales effectiveness or is proposing to assign or change the dealer's area of sales effectiveness
30.2arbitrarily or without due regard to the present pattern of motor vehicle sales and registrations
30.3within the dealer's market, the court may take into consideration the relevant circumstances,
30.4including, but not limited to:
30.5(1) the traffic patterns between consumers and the same line-make franchised dealers
30.6of the affected manufacturer, distributor, or factory branch who are located within the
30.7market;
30.8(2) the pattern of new vehicle sales and registrations of the affected manufacturer,
30.9distributor, or factory branch within various portions of the area of sales effectiveness and
30.10within the market as a whole;
30.11(3) the growth or decline in population, density of population, and new car registrations
30.12in the market;
30.13(4) the presence or absence of natural geographical obstacles or boundaries, such as
30.14rivers;
30.15(5) the proximity of census tracts or other geographic units used by the affected
30.16manufacturer, factory branch, distributor, or distributor branch in determining the same
30.17line-make dealers' respective areas of sales effectiveness; and
30.18(6) the reasonableness of the change or proposed change to the dealer's area of sales
30.19effectiveness, considering the benefits and harm to the petitioning dealer, other same
30.20line-make dealers, and the manufacturer, distributor, or factory branch;
30.21(q) to charge back, withhold payment, deny vehicle allocation, or take any other adverse
30.22action against a dealer when a new vehicle sold by the dealer has been exported to a foreign
30.23country, unless the manufacturer, distributor, or factory branch can show that at the time
30.24of sale, the customer's information was listed on a known or suspected exporter list made
30.25available to the dealer, or the dealer knew or reasonably should have known of the purchaser's
30.26intention to export or resell the motor vehicle in violation of the manufacturer's export
30.27policy. There is a rebuttable presumption that the dealer did not know or should not have
30.28reasonably known that the vehicle would be exported or resold in violation of the
30.29manufacturer's export policy if the vehicle is titled and registered in any state of the United
30.30States;
30.31(r) to implement a charge back or withhold payment to a dealer that is solely due to an
30.32unreasonable delay by the registrar, as defined in section 168.002, subdivision 29, in the
30.33transfer or registration of a new motor vehicle. The dealer must give the manufacturer notice
31.1of the state's delay in writing. Within 30 days of any notice of a charge back, withholding
31.2of payments, or denial of a claim, the dealer must transmit to the manufacturer: (1)
31.3documentation to demonstrate the vehicle sale and delivery as reported; and (2) a written
31.4attestation signed by the dealer operator or general manager stating that the delay is
31.5attributable to the state. This clause expires on June 30, 2022; or
31.6(s) to require a dealer or prospective dealer by program, incentive provision, or otherwise
31.7to construct improvements to its or a predecessor's facilities or to install new signs or other
31.8franchisor image elements that replace or substantially alter improvements, signs, or
31.9franchisor image elements completed within the preceding ten years that were required and
31.10approved by the manufacturer, distributor, or factory branch, including any such
31.11improvements, signs, or franchisor image elements that were required as a condition of the
31.12dealer or predecessor dealer receiving an incentive or other compensation from the
31.13manufacturer, distributor, or factory branch.
31.14This paragraph shall not apply to a program or agreement that provides lump sum payments
31.15to assist dealers in making facility improvements or to pay for signs or franchisor image
31.16elements when such payments are not dependent on the dealer selling or purchasing specific
31.17numbers of new vehicles and shall not apply to a program that is in effect with more than
31.18one Minnesota dealer on August 1, 2018, nor to any renewal of such program, nor to a
31.19modification that is not a substantial modification of a material term or condition of such
31.20program.

31.21    Sec. 37. [214.035] LICENSING DISQUALIFICATIONS; PRELIMINARY
31.22APPLICATIONS; REPORTS.
31.23    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
31.24the meanings given.
31.25(b) "Conviction" has the meaning given in section 609.02, subdivision 5.
31.26(c) "Criminal record" means a record of an arrest, prosecution, criminal proceeding, or
31.27conviction.
31.28(d) "State licensor" or "licensor" means a state agency or examining and licensing board
31.29that issues an occupational or professional license, registration, or certificate and considers
31.30before issuing the license, registration, or certificate any criminal record or conviction of
31.31an applicant that may make an applicant ineligible to receive the license, registration, or
31.32certificate.
32.1    Subd. 2. Scope. (a) This section does not apply to a license, registration, or certificate
32.2issued by a state licensor if the license, registration, or certificate does not require an applicant
32.3to report to the state licensor as part of the application process the applicant's criminal record
32.4or does not require an applicant to obtain a criminal background check or study as part of
32.5the application process to obtain the license, registration, or certificate.
32.6(b) This section does not apply to a license, registration, or certificate issued by the
32.7Professional Educator Licensing and Standards Board, the Department of Health, Department
32.8of Human Services, or any health-related licensing board, as defined in section 214.01,
32.9subdivision 2.
32.10(c) The preliminary application process described under this section may only be utilized
32.11by an individual who has a criminal record.
32.12    Subd. 3. Preliminary applications. (a) Notwithstanding any law to the contrary, all
32.13state licensors shall permit an individual to submit a preliminary application for a
32.14determination pursuant to this section as to whether a criminal record or conviction that
32.15may be considered by the state licensor under state law would make the individual ineligible
32.16to receive an occupational or professional license, registration, or certificate issued by the
32.17state licensor.
32.18(b) An applicant shall submit a preliminary application and any other supporting
32.19documents to the appropriate state licensor in a form and manner approved by the licensor.
32.20The state licensor may require that the applicant provide information about the applicant's
32.21criminal record in the form and manner approved by the licensor.
32.22(c) A state licensor may charge a fee to cover any expenses incurred in connection with
32.23processing a preliminary application, provided the fee does not exceed the actual cost to
32.24the state licensor of processing the application or the initial fee for the applicable license,
32.25registration, or certificate. If the applicant subsequently applies for the license, registration,
32.26or certificate, the amount of the preliminary application fee paid by the applicant must be
32.27credited toward the applicant's initial fee for the license, registration, or certificate. An
32.28applicant may request a waiver of this fee. A fee collected under this paragraph for the
32.29expenses incurred by the state licensor shall be deposited in the fund in the state treasury
32.30in which the state licensor deposits fees collected for issuing occupational or professional
32.31licenses, registrations, or certificates. If the state licensor does not collect a fee for issuing
32.32occupational or professional licenses, registrations, or certificates, any fee collected under
32.33this paragraph shall be deposited pursuant to section 214.06, subdivision 1.
33.1(d) Upon receipt of a completed preliminary application and any necessary supporting
33.2documents, the state licensor must determine under state law whether a criminal record or
33.3conviction that may be considered under state law would make the applicant ineligible to
33.4receive a professional or occupational license, registration, or certificate from the licensor.
33.5The state licensor must issue a written decision within 60 days of receiving a completed
33.6preliminary application. If the state licensor determines that a criminal record or conviction
33.7would make the applicant ineligible to receive a professional or occupational license,
33.8registration, or certificate, the written decision must:
33.9(1) state all reasons the professional or occupational license, registration, or certificate
33.10would be denied, including the standard used to make the decision; and
33.11(2) inform the applicant of any action or additional steps the applicant could take to
33.12qualify for a professional or occupational license, registration, or certificate.
33.13(e) If a state licensor determines that no criminal records or convictions would make the
33.14applicant ineligible to receive a professional or occupational license, registration, or
33.15certificate, that decision is binding on the licensor unless the decision is clearly erroneous
33.16under state law or:
33.17(1) the applicant is convicted of a crime or commits any other disqualifying act that may
33.18be considered by the state licensor under state law after submission of the preliminary
33.19application;
33.20(2) the applicant provided incomplete information in the preliminary application;
33.21(3) the applicant provided inaccurate or fraudulent information in the preliminary
33.22application; or
33.23(4) changes to state law were enacted after the date the decision was issued, making the
33.24applicant ineligible under state law to receive a license, registration, or certificate.
33.25(f) Nothing in this section precludes a licensor from issuing a license, registration, or
33.26certificate to an applicant that includes limitations or conditions on the license, registration,
33.27or certificate based on a criminal conviction or alleged misconduct of the applicant.
33.28(g) By August 1 of each year, each state licensor shall submit to the commissioner of
33.29management and budget the number of applicants who submitted preliminary applications
33.30to the licensor in accordance with this section and the number of applicants who subsequently
33.31applied for a license, registration, or certificate for the previous fiscal year. The state licensor
33.32shall also submit the total amount of initial application fees that were not paid by these
33.33applicants pursuant to paragraph (c), or, if the licensor does not collect a fee for issuing a
34.1license, registration, or certificate, the cost of processing the preliminary application fee
34.2that was not covered pursuant to paragraph (c). Each fiscal year, an amount necessary to
34.3pay each state licensor the rest of each initial application fee or the rest of the cost of
34.4processing each preliminary application if an initial application fee was not collected by
34.5the licensor is appropriated from the general fund to the appropriate state licensor.
34.6    Subd. 4. Reports. (a) By January 15 of each year, every state licensor shall report to the
34.7Department of Employment and Economic Development on:
34.8(1) the number of individuals who applied for a professional or occupational license,
34.9registration, or certificate from the licensor;
34.10(2) the number of individuals described in clause (1) who were found to be ineligible
34.11due to a criminal record or conviction;
34.12(3) the number of individuals who submitted a preliminary application under this section;
34.13and
34.14(4) the number of individuals described in clause (3) who were found to be ineligible
34.15due to a criminal record or conviction.
34.16(b) On or before February 15 of each year, the commissioner of employment and
34.17economic development shall compile the reports received under paragraph (a) and provide
34.18the compiled reports to the chairs and ranking minority members of the house of
34.19representatives and senate committees and divisions with jurisdiction over employment.
34.20The commissioner of employment and economic development must make the report readily
34.21available on the department's public website.
34.22EFFECTIVE DATE.This section is effective July 1, 2023.

34.23    Sec. 38. Minnesota Statutes 2020, section 239.761, subdivision 3, is amended to read:
34.24    Subd. 3. Gasoline. (a) Gasoline that is not blended with biofuel must not be contaminated
34.25with water or other impurities and must comply with ASTM specification D4814-11b.
34.26Gasoline that is not blended with biofuel must also comply with the volatility requirements
34.27in Code of Federal Regulations, title 40, part 80 1090.
34.28(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
34.29a person responsible for the product:
34.30(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision
34.314;
34.32(2) shall not blend the gasoline with any oxygenate other than biofuel;
35.1(3) shall not blend the gasoline with other petroleum products that are not gasoline or
35.2biofuel;
35.3(4) shall not blend the gasoline with products commonly and commercially known as
35.4casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
35.5gasoline; and
35.6(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
35.7designed to replace tetra-ethyl lead, that is registered by the EPA.
35.8EFFECTIVE DATE.This section is effective the day following final enactment.

35.9    Sec. 39. Minnesota Statutes 2020, section 239.761, subdivision 4, is amended to read:
35.10    Subd. 4. Gasoline blended with ethanol; general. (a) Gasoline may be blended with
35.11agriculturally derived, denatured ethanol that complies with the requirements of subdivision
35.125.
35.13(b) A gasoline-ethanol blend must:
35.14(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part
35.1580 1090;
35.16(2) comply with ASTM specification D4814-11b, or the gasoline base stock from which
35.17a gasoline-ethanol blend was produced must comply with ASTM specification D4814-11b;
35.18and
35.19(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,
35.20drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,
35.21or otherwise removed from a refinery or terminal.
35.22EFFECTIVE DATE.This section is effective the day following final enactment.

35.23    Sec. 40. Minnesota Statutes 2020, section 239.791, subdivision 2a, is amended to read:
35.24    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted by
35.25the United States Environmental Protection Agency under United States Code, title 42,
35.26section 7545, may alter the minimum content level required by subdivision 1, paragraph
35.27(a), clause (1), item (ii), the waiver must:
35.28(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
35.29(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal
35.30Regulations, title 40, ~~section~~ ~~80.27~~ part 1090.215, paragraph ~~(d)~~ (b), for blends of gasoline
36.1and ethanol up to the maximum percent of denatured ethanol by volume authorized under
36.2the waiver.
36.3(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause (1), item
36.4(ii), shall, upon the grant of the federal waiver, be effective the day after the commissioner
36.5of commerce publishes notice in the State Register. In making this determination, the
36.6commissioner shall consider the amount of time required by refiners, retailers, pipeline and
36.7distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the
36.8operational and logistical changes required to supply fuel in compliance with the minimum
36.9biofuel requirement.
36.10EFFECTIVE DATE.This section is effective the day following final enactment.

36.11    Sec. 41. Minnesota Statutes 2020, section 296A.01, subdivision 23, is amended to read:
36.12    Subd. 23. Gasoline. (a) "Gasoline" means:
36.13    (1) all products commonly or commercially known or sold as gasoline regardless of
36.14their classification or uses, except casinghead gasoline, absorption gasoline, condensation
36.15gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
36.16subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise
36.17removed from a refinery or terminal; and
36.18    (2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and
36.19commercially used as, a fuel in spark-ignition, internal combustion engines, and that when
36.20tested by the Weights and Measures Division meets the specifications in ASTM specification
36.21D4814-11b.
36.22    (b) Gasoline that is not blended with ethanol must not be contaminated with water or
36.23other impurities and must comply with both ASTM specification D4814-11b and the volatility
36.24requirements in Code of Federal Regulations, title 40, part 80 1090.
36.25    (c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
36.26a person responsible for the product:
36.27    (1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision
36.2824;
36.29    (2) must not blend the gasoline with any oxygenate other than denatured, agriculturally
36.30derived ethanol;
36.31    (3) must not blend the gasoline with other petroleum products that are not gasoline or
36.32denatured, agriculturally derived ethanol;
37.1    (4) must not blend the gasoline with products commonly and commercially known as
37.2casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
37.3gasoline; and
37.4    (5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
37.5designed to replace tetra-ethyl lead, that is registered by the EPA.
37.6EFFECTIVE DATE.This section is effective the day following final enactment.

37.7    Sec. 42. Minnesota Statutes 2020, section 325E.21, subdivision 4, is amended to read:
37.8    Subd. 4. Registration required. (a) Every scrap metal dealer shall register annually
37.9with the commissioner of public safety.
37.10    (b) The scrap metal dealer shall pay to the commissioner of public safety a $50 annual
37.11fee.
37.12EFFECTIVE DATE.This section is effective the day following final enactment.

37.13    Sec. 43. REPEALER.
37.14(a) Minnesota Statutes 2020, sections 72A.08; and 72A.20, subdivisions 10 and 15, are
37.15repealed effective January 1, 2023.
37.16(b) Minnesota Statutes 2020, section 60A.033, subdivision 3, is repealed."
37.17Amend the title accordingly
37.18The motion prevailed. #did not prevail. So the amendment was #not adopted.