.................... moves to amend H.F. No. 157, the third engrossment, as follows:
Delete everything after the enacting clause and insert:
"Section 1. [80G.01] DEFINITIONS.
1.4 Subdivision 1. Scope. For purposes of this chapter, the following terms have the
1.5meanings given to them in this section.
1.6 Subd. 2. Bullion coin. "Bullion coin" means any coin containing more than one
1.7percent by weight of silver, gold, platinum, or other precious metal.
1.8 Subd. 3. Bullion coin dealer. (a) Subject to the exceptions in paragraph (b), a
1.9"bullion coin dealer" means any person who buys, sells, solicits, or markets bullion
1.10coins or investments in bullion coins to consumers and is either incorporated, registered,
1.11domiciled, or otherwise located in this state, or who does business with a consumer
1.12domiciled, residing, or otherwise located in this state.
1.13(b) A "bullion coin dealer" does not include any of the following persons:
1.14(1) a person who engages only in wholesale bullion coin transactions with bullion
1.15coin dealers who sell at retail and are properly registered under this chapter;
1.16(2) a person who engages only in transactions at occasional garage or yard sales
1.17held at the seller's residence, farm auctions held at the seller's residence, or estate sales
1.18held at the decedent's residence;
1.19(3) a person who is properly registered pursuant to chapter 80A, or the federal
1.20Securities Exchange Act of 1934 and rules promulgated thereunder as a securities broker
1.21dealer or broker dealer agent;
1.22(4) an auctioneer who auctions coins at auction on behalf of an owner, if the
1.23auctioneer does not take title or ownership of the coins;
1.24(5) a person who engages only in transactions at occasional trade shows where the
1.25consumer is present and the transaction is made at the trade show; or
1.26(6) a federally- or state-chartered bank, bank and trust, savings bank, savings
1.27association, or credit union or any operating subsidiary of them.
2.1 Subd. 4. Coin dealer representative. "Coin dealer representative" means any
2.2natural person acting as an employee, contractor, or agent of a bullion coin dealer and who
2.3has interactions with consumers in connection with the buying, selling, solicitation, or
2.4marketing of bullion coins or investments in bullion coins.
2.5 Subd. 5. Commissioner. "Commissioner" means the commissioner of commerce.
2.6 Subd. 6. Owner. "Owner" means any person who has an ownership interest in a
2.7bullion coin dealer, regardless of whether directly or indirectly, of more than ten percent
2.8and who is actively engaged in the direction, management, oversight, or operation of the
2.9bullion coin dealer or its business affairs.
2.10 Subd. 7. Person. "Person" has the same meaning given in section 325F.68,
2.12 Subd. 8. Precious metal content. "Precious metal content" means the quantity,
2.13measured in grams, of gold, silver, platinum, or other precious metal in a coin and the
2.14percentage that the precious metal constitutes of the total weight of the coin.
Sec. 2. [80G.02] REGISTRATION.
2.16 Subdivision 1. Registration required. Beginning July 1, 2014, it shall be unlawful
2.17for a bullion coin dealer or coin dealer representative to solicit, market, buy, sell, or deliver
2.18bullion coins or investments in bullion coins to a consumer without being registered by the
2.19commissioner as provided for in this chapter, if the bullion coin dealer has engaged in a
2.20bullion coin transaction or transactions with consumers during the 12-month period prior
2.21to July 1, 2014, that exceed $5,000 in the aggregate, as determined by the transactions'
2.22sale prices. If a bullion coin dealer was not required to be registered beginning on July 1,
2.232014, the bullion coin dealer must submit an application to register itself and each of its
2.24coin dealer representatives within 30 days of reaching $5,000 in the aggregate of bullion
2.25coin transactions with consumers in any 12-month period prior to July 1 of any calendar
2.26year, as determined by the transactions' sale prices. Once a bullion coin dealer is required
2.27to register itself and its coin dealer representatives, the coin dealer must thereafter renew
2.28its registration and the registration of each of its coin dealer representatives in accordance
2.29with this chapter, regardless of the aggregate amount of transactions, unless the person
2.30ceases to be a bullion coin dealer. A coin dealer representative may not buy, sell, solicit,
2.31or market bullion coins or investments in bullion coins on behalf of a bullion coin dealer
2.32unless the dealer is properly registered with the commissioner under this section.
2.33 Subd. 2. Registration obligations. Registrations issued or renewed by the
2.34commissioner under this chapter shall expire on June 30 and must be renewed.
3.1 Subd. 3. Registration application and renewal. The application and renewal
3.2forms shall include the following information, as applicable, which shall be considered by
3.3the commissioner in determining whether to issue a registration and whether to thereafter
3.4renew the registration:
3.5(1) the name, assumed names, doing business as names, including caller
3.6identification names, and business addresses of the bullion coin dealer, the name of
3.7each owner and officer, and the name and primary work location of each coin dealer
3.8representative. A bullion coin dealer who desires to carry on business in more than one
3.9location shall identify each address where business is conducted;
3.10(2) if a bullion coin dealer is doing business under any name other than the dealer's
3.11legal name, documentation that the assumed name has been properly filed with the
3.12secretary of state;
3.13(3) the telephone numbers, including cellular phone numbers, electronic mail
3.14addresses, and Web site domain names used or intended to be used by the bullion coin
3.15dealer and its coin dealer representatives to buy, sell, solicit, market, or deliver to
3.16consumers bullion coin or investments in bullion coin;
3.17(4) the disclosure of all criminal convictions by any court within the last ten years
3.18for the bullion coin dealer and each officer and owner of the bullion coin dealer and
3.19for each of its coin dealer representatives;
3.20(5) the disclosure of any civil judgments in favor of a government entity or
3.21government entity orders entered, filed, or issued against the bullion coin dealer, its
3.22officers and owners, or its coin dealer representatives within the last ten years for violation
3.23of consumer protection laws or unfair trade practice laws or for failure to account to a
3.24consumer for money or property received from the consumer;
3.25(6) the disclosure of any settlement or other agreement with any government entity
3.26within the last ten years resolving concerns that the bullion coin dealer, its officers and
3.27owners, or its coin dealer representatives violated consumer protection or unfair trade
3.28practice laws, or for failure to account to a consumer for money or property received
3.29from the consumer; and
3.30(7) the disclosure of any instance in which the bullion coin dealer, its officers and
3.31owners, and its coin dealer representatives were at any time permanently or temporarily
3.32prohibited by any court of competent jurisdiction or ordered to cease and desist as the
3.33result of a government agency action from engaging in buying, selling, soliciting, or
3.34marketing of bullion coin or investments in bullion coin.
3.35 Subd. 4. Notice of change in registration information. A bullion coin dealer must
3.36provide the commissioner written notice of a change in the dealer's name, assumed names,
4.1doing business as names, business addresses, including all business addresses at which it
4.2or its coin dealer representatives conduct business, owners, electronic mail addresses, Web
4.3site domain names, or telephone numbers used by it or its coin dealer representatives to
4.4buy, sell, solicit, or market to consumers bullion coin or investments in bullion coin no
4.5later than ten days after the change occurs.
4.6 Subd. 5. Registration fee. (a) The fee for each registration under this chapter
4.7shall be as follows:
4.8(1) bullion coin dealers: $25; and
4.9(2) coin dealer representatives: $10.
4.10(b) The commissioner, based on the cost of processing registrations, may adjust the
4.11registration fee on an annual basis as needed.
Sec. 3. [80G.03] REGISTRATION DENIAL, NONRENEWAL, REVOCATION
4.14 Subdivision 1. Authority. The commissioner may, by order, suspend, revoke, or
4.15refuse to issue or renew a bullion coin dealer or coin dealer representative registration for
4.16any one or more of the following causes:
4.17(1) providing incorrect, false, misleading, or incomplete information to the
4.18commissioner or refusing to allow a reasonable inspection of information and documents
4.19in the possession of the bullion coin dealer, coin dealer representative, or a third party or
4.20to allow a reasonable inspection of premises;
4.21(2) obtaining or attempting to obtain a registration through misrepresentation or fraud;
4.22(3) having a bullion coin dealer or coin dealer representative registration or its
4.23equivalent, including licensure under section 325F.73, denied, suspended, or revoked by
4.24any locality within the state or other state, province, district, or territory;
4.25(4) being permanently or temporarily enjoined by any court of competent jurisdiction
4.26or being ordered to cease and desist by a government agency from engaging in or
4.27continuing any conduct or practice involving the buying, selling, soliciting, or marketing
4.28of bullion coins, investments in bullion coins, or precious metal to consumers;
4.29(5) violating the provisions of this chapter or of sections 45.027; 325D.43 to
4.30325D.48; 325F.67; 325F.68 to 325F.69; 325F.694; and 325F.73 to 325F.744, or federal
4.31or state taxation or labor law; or
4.32(6) violating a subpoena or order of the commissioner or a court issued pursuant
4.33to this chapter or sections 45.027; 325D.43 to 325D.48; 325F.67; 325F.68 to 325F.69;
4.34325F.694; 325F.70; and 325F.73 to 325F.744.
5.1 Subd. 2. Bullion coin dealer responsibility for actions of coin dealer
5.2representatives. The commissioner may take action against a bullion coin dealer for any
5.3violations of this chapter by its coin dealer representatives. The commissioner may also
5.4take action against the coin dealer representative.
5.5 Subd. 3. Other authority of the commissioner. If a registration lapses, is
5.6surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner
5.7may institute a proceeding under this subdivision within two years after the registration
5.8was last effective and enter a revocation order as of the last date on which the registration
5.9was in effect, and impose a civil penalty as provided for in section 45.027, subdivision 6.
5.10 Subd. 4. Effect of revocation. A revocation of a registration prohibits the bullion
5.11coin dealer or coin dealer representatives from making a new application for a registration
5.12for at least two years from the effective date of the revocation.
Sec. 4. [80G.04] CRIMINAL CONVICTIONS.
5.14 Subdivision 1. Bullion coin dealer registration precluded. The commissioner
5.15must deny an application for registration or renewal of a bullion coin dealer, or revoke
5.16such registration, if the bullion coin dealer or its owners or officers have within the last
5.17ten years been convicted in any court of any financial crime or other crime involving
5.18fraud, theft, or dishonesty.
5.19 Subd. 2. Coin dealer representative registration precluded. The commissioner
5.20must deny an application for registration or renewal of a coin dealer representative, or
5.21revoke such registration, if the coin dealer representative has within the last ten years
5.22been convicted in any court of any financial crime or other crime involving fraud, theft,
Sec. 5. [80G.05] SCREENING.
5.25 Subdivision 1. Screening process required. Each bullion coin dealer must
5.26establish procedures to screen each of its owners and officers and each of its coin
5.27dealer representatives prior to submitting the application to the commissioner for initial
5.28registration and at each renewal. The results of such screenings shall be provided to the
5.29commissioner as part of the initial registration and all renewal registrations if requested by
5.31 Subd. 2. Initial screening. The screening process for initial registration must be
5.32done no more than 60 days before the submission of an application for registration. The
5.33process must include a national criminal history record search, a judgment search, and a
5.34county criminal history search for all counties where the owner, officer, or coin dealer
6.1representative has resided within the immediately preceding ten years. Each bullion coin
6.2dealer shall use a vendor that is a member of the National Association of Professional
6.3Background Screeners, or an equivalent vendor, to conduct the background screening
6.4process on its owners, officers, and coin dealer representatives.
6.5 Subd. 3. Renewal screening. The screening process for the renewal of a
6.6registration must include a national criminal history record search, a judgment search, and
6.7county criminal history search for all counties where the owner, officer, or coin dealer
6.8representative has resided since satisfactorily completing the last screening process
6.9conducted pursuant to this section. Screening for renewal of the owner, officer, and coin
6.10dealer representative registrations must take place no more than 60 days before the
6.11submission of an application for renewal of a registration.
Sec. 6. [80G.06] SURETY BOND.
6.13 Subdivision 1. Surety bond requirement. Every bullion coin dealer shall maintain a
6.14current, valid surety bond issued by a surety company admitted to do business in Minnesota
6.15in an amount based on the transactions (purchases from and sales to consumers at retail)
6.16during the 12-month period prior to registration, or renewal, whichever is applicable.
6.17The amount of the surety bond shall be as specified in the table below:
6.25 Subd. 2. Action on bond permitted. A consumer injured in money or property by a
6.26bullion coin dealer's or coin dealer representative's failure to provide bullion coins that
6.27the consumer has paid for or failure to remit money or goods owed to the consumer in
6.28connection with the consumer's sale of bullion coins may file a claim with the surety and
6.29if the claim is not paid, is authorized to bring an action based on the bond and recover
6.30against the surety. The commissioner or attorney general may also file a claim and bring
6.31an action on the bond and recover against the surety on behalf of a consumer so injured.
|Transaction Amount in Preceding 12-month
|Surety Bond Required
|$0 to $200,000
|$200,000.01 to $500,000
|$500,000.01 to $1,000,000
|$1,000,000.01 to $2,000,000
Sec. 7. [80G.07] PROHIBITED CONDUCT.
6.33 Subdivision 1. Sales practices. No bullion coin dealer or coin dealer representative
7.1(1) prior to a transaction regarding bullion coins, or concurrent with the delivery
7.2thereof, fail to provide to the consumer in writing, in a clear and conspicuous manner,
7.3the sale or purchase price and the precious metal content of the bullion coins involved in
7.4the transaction. The written notice shall also include the bullion coin dealer's registration
7.5identification information issued by the commissioner, and the Department of Commerce's
7.6e-mail address and telephone number. A copy of the written notice shall be provided to
7.7the consumer and a copy retained by the bullion coin dealer;
7.8(2) fail to deliver bullion coins to a consumer within the time agreed upon with
7.9the consumer or, if no such agreement exists, within 30 days after the consumer has
7.10paid for the coins;
7.11(3) fail to pay a consumer for purchased bullion coins within the time agreed upon
7.12with the consumer or, if no such agreement exists, within 30 days after the consumer
7.13has provided the coins;
7.14(4) fail to provide a written invoice at the time of the transaction specifically
7.15identifying and describing the bullion coins involved in the transaction, the quantity of
7.16bullion coins involved in the transaction, and the bullion coins' sale or purchase price and
7.17precious metal content. The written invoice shall include the bullion coin dealer registration
7.18identification information issued by the commissioner, and the Department of Commerce's
7.19e-mail address and telephone number. A copy of the transaction documentation shall be
7.20provided to the consumer and a copy retained by the bullion coin dealer;
7.21(5) misrepresent the delivery date of bullion coins or payment for bullion coins, or
7.22the dealer or representative's professional qualifications, affiliations, or registration;
7.23(6) misrepresent any material aspect of a bullion coin, including its performance,
7.24efficacy, nature, investment value, central characteristics, liquidity, earnings potential,
7.26(7) misrepresent the manner in which any bullion coins a consumer provides will be
7.27stored or otherwise handled once received;
7.28(8) renegotiate the terms of a sale or purchase after receiving a consumer's payment
7.29or bullion coins without first obtaining the consumer's agreement to renegotiate and
7.30offering the consumer the option to have the payment fully refunded or the entirety of
7.31the bullion coins returned;
7.32(9) fail to respond within three business days to a consumer inquiry about the
7.33delivery status of bullion coins that the consumer has paid for but not yet received or the
7.34status of a payment for bullion coins that the consumer has already provided;
8.1(10) telephone or solicit a consumer, or sell or provide the consumer's name to
8.2any other bullion coin dealer or coin dealer representative, after the consumer requests
8.3not to be contacted;
8.4(11) violate a subpoena or order of the commissioner or a court;
8.5(12) make any communication to a potential buyer or seller of bullion coins that
8.6misrepresents the relationship, if any, between the bullion coin dealer or coin dealer
8.7representative and any government agency or mint;
8.8(13) improperly withhold, misappropriate, or convert any money or properties
8.9received in the course of buying, selling, soliciting, or marketing bullion coins or
8.10investments in bullion coins to consumers;
8.11(14) misrepresent the terms of an actual or proposed purchase or sale of bullion coins
8.12or investment in bullion coins to a consumer; or
8.13(15) violate any other federal, state, or local law or rule related to selling, purchasing,
8.14soliciting, or marketing of bullion coin, investments in bullion coin, or precious metals, or
8.15any federal, state, or local law related to fraudulent, coercive, or dishonest practices, or
8.16federal, state, or local law related to taxation or labor standards.
8.17 Subd. 2. Application. From August 1, 2013, to June 30, 2014, section 80G.07 shall
8.18apply to any bullion coin dealer and its coin dealer representatives if the bullion coin
8.19dealer is engaged in a bullion coin transaction or transactions with consumers which
8.20exceed $5,000 in the aggregate, as determined by the transaction sale prices, during the
8.2112-month period prior to August 1, 2013. On or after July 1, 2014, section 80G.07 shall
8.22apply to any bullion coin dealer and its coin dealer representatives which is or should be
8.23registered in accordance with the provisions of this chapter.
Sec. 8. [80G.08] CRIMINAL VIOLATION.
8.25A person who conducts business as a bullion coin dealer or as a coin dealer
8.26representative without having first registered with the commissioner, or who carries on
8.27such business after the revocation, suspension, or expiration of a registration, or who
8.28violates section 80G.07, subdivision 1, clauses (2) or (3), is guilty of a misdemeanor.
Sec. 9. [80G.09] OTHER ACTION; LOCAL AUTHORITY.
8.30Nothing in this chapter precludes an action under chapter 80A or preempts local
8.31government authority under section 325F.742.
Sec. 10. [80G.10] INVESTIGATIONS AND CIVIL ENFORCEMENT.
9.1 Subdivision 1. Civil action instituted by commissioner. If the commissioner
9.2believes that a person has engaged, is engaging, or is about to engage in an act, practice,
9.3or course of business constituting a violation of this chapter or a rule adopted or order
9.4issued under this chapter or that a person has, is, or is about to engage in an act, practice,
9.5or course of business that materially aids a violation of this chapter or a rule adopted or
9.6order issued under this chapter, the commissioner may maintain an action in the district
9.7court to enjoin the act, practice, or course of business and to enforce compliance with this
9.8chapter or a rule adopted or order issued under this chapter.
9.9 Subd. 2. Relief available. In an action under this section and on a proper showing,
9.10the court may:
9.11(1) issue a permanent or temporary injunction, restraining order, or declaratory
9.13(2) order other appropriate or ancillary relief, which may include:
9.14(i) an asset freeze, accounting, writ of attachment, writ of general or specific
9.15execution, and appointment of a receiver or conservator, that may be the commissioner,
9.16for the defendant or the defendant's assets;
9.17(ii) ordering the commissioner to take charge and control of a defendant's property,
9.18including investment accounts and accounts in a depository institution, rents, and profits;
9.19to collect debts; and to acquire and dispose of property;
9.20(iii) imposing a civil penalty up to $10,000 for each violation; an order of rescission,
9.21restitution, or disgorgement directed to a person that has engaged in an act, practice, or
9.22course of business constituting a violation of this chapter or a rule adopted or order issued
9.23under this chapter or the predecessor act; and
9.24(iv) ordering the payment of prejudgment and post judgment interest; or
9.25(3) order such other relief as the court considers appropriate.
9.26 Subd. 3. No bond required. The commissioner may not be required to post a bond
9.27in an action or proceeding under this chapter.
9.28 Subd. 4. Commissioner authority. (a) If the commissioner determines that a
9.29person has engaged, is engaged, or is about to engage in an act, practice, or course of
9.30conduct constituting a violation of this chapter or a rule adopted or order issued under this
9.31chapter or that a person has materially aided, is materially aiding, or is about to materially
9.32aid an act, practice or course of conduct constituting a violation of this chapter or rule
9.33adopted or order issued under this chapter the commissioner may:
9.34(1) issue an order directing the person to cease and desist from engaging in the
9.35act, practice or conduct or to take other action necessary or appropriate to comply with
9.36this chapter; or
10.1(2) issue an order denying, suspending, revoking or conditioning the registration of
10.2bullion coin dealer or coin dealer representative.
10.3(b) Upon issuance of an order, the commissioner shall promptly serve each person
10.4subject to the order with a copy of the order and a notice that the order has been
10.5issued. The order must include a statement of the reasons for the order and whether the
10.6commissioner will seek a civil penalty or costs of the investigation, and notice that the
10.7person must within 30 days of being serviced with the order request in writing a hearing
10.8and that within 15 days after receipt of a written hearing request from the person, the
10.9matter will be scheduled for a hearing. If a person subject to the order does not request a
10.10hearing within 30 days after the date of service of the order, the order becomes final as to
10.11that person by operation of law. If a hearing is requested, the commissioner, after notice of
10.12an opportunity for hearing to each person subject to the order, may modify or vacate the
10.13order or extend it until final determination.
10.14(c) If a hearing is requested pursuant to subsection (b), a hearing must be held under
10.15chapter 14 and a final order may not be issued unless the commissioner makes findings of
10.16fact and conclusions of law in a record according to chapter 14. The final order may make
10.17final, vacate, or modify the order issued under subsection (a).
10.18(d) If a petition for judicial review of a final order is not filed in accordance with
10.19chapter 14, the commissioner may file a certified copy of the final order with the clerk of a
10.20court of competent jurisdiction. The order so filed has the same effect as a judgment of the
10.21court and may be recorded, enforced, or satisfied in the same manner as a judgment of
10.23(e) If a person does not comply with an order under this section, the commissioner
10.24may petition a court of competent jurisdiction to enforce the order. The court may not
10.25require the commissioner to post a bond in an action or proceeding under this section.
10.26If the court finds, after service and opportunity for hearing, that the person was not in
10.27compliance with the order, the court may adjudge the person in civil contempt of the order.
10.28The court may impose a further civil penalty against the person for contempt in an amount
10.29up to $10,000 for each violation and may grant any other relief the court determines is just
10.30and proper in the circumstances.
10.31(f) In addition to the authority granted under this chapter, the commissioner has all
10.32the authority provided under section 45.027 to ensure compliance with this chapter.
Sec. 11. EFFECTIVE DATE.
10.34This act is effective August 1, 2013.
Amend the title accordingly