Bill Text: MN SF382 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Bullion coin dealers regulation, registration requirement, conduct prohibition, enforcement authority, criminal penalties and appropriation
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-05-16 - HF substituted on General Orders HF157 [SF382 Detail]
Download: Minnesota-2013-SF382-Introduced.html
Bill Title: Bullion coin dealers regulation, registration requirement, conduct prohibition, enforcement authority, criminal penalties and appropriation
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-05-16 - HF substituted on General Orders HF157 [SF382 Detail]
Download: Minnesota-2013-SF382-Introduced.html
1.2relating to commerce; regulating bullion coin dealers; requiring registration;
1.3prohibiting certain conduct; providing enforcement authority and criminal
1.4penalties;proposing coding for new law as Minnesota Statutes, chapter 80G.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [80G.01] DEFINITIONS.
1.7 Subdivision 1. Scope. For the purposes of this chapter, the following terms have the
1.8meanings given in this section.
1.9 Subd. 2. Bullion coin. "Bullion coin" means a coin containing more than one
1.10percent by weight of silver, gold, platinum, or other precious metal.
1.11 Subd. 3. Bullion coin dealer. (a) Subject to the exceptions in paragraph (b),
1.12"bullion coin dealer" means a person who buys, sells, solicits, or markets bullion coins
1.13or investments in bullion coins to consumers and is either incorporated, registered,
1.14domiciled, or otherwise located in the state or who does business with a consumer
1.15domiciled, residing, or otherwise located in the state.
1.16(b) Bullion coin dealer does not include any of the following:
1.17(1) a person who engages in isolated transactions, consisting of less than five bullion
1.18coin transactions with consumers during and 12-month period;
1.19(2) a person who engages in isolated transactions, consisting of bullion coin
1.20transactions with consumers during any 12-month period that do not exceed $5,000 in the
1.21aggregate as determined by the transactions' sale prices;
1.22(3) a person who engages only in wholesale bullion coin transactions with bullion
1.23coin dealers who sell at retail and are properly registered under this chapter; or
2.1(4) a person who engages only in transactions at occasional garage or yard sales
2.2held at the seller's residence, farm auctions held at the seller's residence, or estate sales
2.3held at the decedent's residence.
2.4 Subd. 4. Coin dealer representative. "Coin dealer representative" means a natural
2.5person acting as an employee, contractor, or agent of a bullion coin dealer and who
2.6has interactions with consumers in connection with the buying, selling, solicitation, or
2.7marketing of bullion coins or investments in bullion coins.
2.8 Subd. 5. Commissioner. "Commissioner" means the commissioner of commerce.
2.9 Subd. 6. Melt value. "Melt value" means the reasonable estimated value of a
2.10bullion coin if the item were processed and refined.
2.11 Subd. 7. Person. "Person" has the meaning given in section 325F.68, subdivision 3.
2.12 Sec. 2. [80G.02] REGISTRATION.
2.13 Subdivision 1. Required. It is unlawful for a bullion coin dealer or coin dealer
2.14representative to solicit, market, buy, sell, or deliver bullion coins or investments in
2.15bullion coins to a consumer without having first registered with the commissioner as
2.16provided in this chapter.
2.17 Subd. 2. Obligations. A bullion coin dealer must register itself and each of its coin
2.18dealer representatives with the commissioner. A bullion coin dealer shall verify and certify
2.19in the registration of each coin dealer representative application that the representative
2.20satisfies the requirements of sections 80G.03 and 80G.04. A registration approved by the
2.21commissioner under this chapter expires one year after registration.
2.22 Subd. 3. Application. All applications for registration by a bullion coin dealer
2.23or coin dealer representative must be made on forms approved by the commissioner.
2.24The commissioner may determine the requirements of the application form, and other
2.25materials, if any, that must be appended to it. This determination by the commissioner
2.26is not subject to the rulemaking provisions of chapter 14, including section 14.386. At a
2.27minimum, the application must include the following, as applicable:
2.28(1) the name and business address of the bullion coin dealer and the name and
2.29primary work location of each coin dealer representative. A bullion coin dealer who
2.30desires to carry on business in more than one location shall identify each address where
2.31business is to be conducted; and
2.32(2) a disclosure by each officer and owner of the bullion coin dealer and each coin
2.33dealer representative of all criminal convictions by any court within the last ten years.
2.34 Subd. 4. Notice of address change. A bullion coin dealer must give the
2.35commissioner written notice of a change in the dealer's name, assumed name, business
3.1addresses, or ownership no later than 15 days after the change occurs. A coin dealer
3.2representative must give written notice of a change of work address or name no later than
3.330 days after the change occurs.
3.4 Subd. 5. Fee. The fee for each registration under this chapter shall be as follows:
3.5(1) Bullion coin dealer: $.......
3.6(2) Coin dealer representative: $.......
3.7 Sec. 3. [80G.03] DISQUALIFICATION.
3.8The commissioner shall not accept a registration for a coin dealer representative
3.9who has, within the last 15 years, or for a bullion coin dealer whose owners or officers
3.10have, within the past 15 years:
3.11(1) been convicted in any court of any felony;
3.12(2) been convicted in any court of any crime involving fraud or deceit, theft, or
3.13any financial crime;
3.14(3) been unable to truthfully certify that they have no civil judgments against them,
3.15including but not limited to conciliation court or equivalent judgments, for failure to
3.16account to a customer for money or property received from the customer; or
3.17(4) been unable to truthfully certify that they have not entered into a settlement or
3.18other agreement with any government entity resolving concerns by the government entity
3.19that they had violated consumer protection or unfair trade practice laws.
3.20 Sec. 4. [80G.04] SCREENING PROCESS.
3.21 Subdivision 1. Required. A bullion coin dealer must establish procedures to screen
3.22each of its owners and officers and each coin dealer representative before submitting to
3.23the commissioner the application for initial registration and at renewal. The results of the
3.24screenings must be provided to the commissioner as part of the initial registration and
3.25all renewal registrations.
3.26 Subd. 2. Initial screening. The screening process for initial registration must
3.27be done before the time of hiring and registration. The process must include a national
3.28criminal history record search and a judgment search and county criminal history search
3.29for all counties where the applicant has resided within the immediately preceding five
3.30years, to determine whether the applicant is eligible to be registered under this chapter.
3.31Each bullion coin dealer shall use a vendor that is a member of the National Association of
3.32Professional Background Screeners, or an equivalent vendor, to conduct the background
3.33screening process on its owners and officers and coin dealer representatives.
4.1 Subd. 3. Renewal screening. The screening process for the renewal of a coin dealer
4.2representative's registration must include a national criminal history record search and a
4.3judgment search and county criminal history search for all counties where the individual
4.4has resided since satisfactorily completing the last screening process conducted pursuant
4.5to this chapter. Screening for renewal of coin dealer representative registrations must take
4.6place no more than 60 days before the registration expiration or renewal date.
4.7 Sec. 5. [80G.05] BOND REQUIREMENT.
4.8 Subdivision 1. Surety bond required. A bullion coin dealer shall maintain
4.9a current, valid surety bond issued by a surety company admitted to do business in
4.10Minnesota in an amount no less than the total purchase and sales transactions made during
4.11the 12-month period before registration.
4.12 Subd. 2. Action on bond permitted. An aggrieved consumer may file a claim
4.13with the surety and, if the claim is not paid, is authorized to bring an action based on the
4.14bond and recover against the surety. The commissioner or attorney general may also
4.15file a claim and bring an action on the bond and recover against the surety on behalf of
4.16an aggrieved consumer.
4.17 Sec. 6. [80G.06] DISCLOSURE.
4.18Before the sale of any bullion coins, a bullion coin dealer must disclose to the
4.19consumer in a clear and conspicuous manner the sale price and melt value of the bullion
4.20coins involved in the transaction.
4.21 Sec. 7. [80G.07] PROHIBITED CONDUCT.
4.22A bullion coin dealer or coin dealer representative shall not:
4.23(1) fail to deliver bullion coins to a consumer within the time agreed upon with
4.24the consumer or, if no such agreement exists, within 30 days after the consumer has
4.25paid for the coins;
4.26(2) fail to pay a seller for purchased bullion coins within the time agreed upon
4.27with the consumer or, if no such agreement exists, within 30 days after the consumer
4.28has provided the coins;
4.29(3) fail to provide an invoice at the time of the transaction describing the nature of
4.30the bullion coins involved in the transaction, the quantity of bullion coins involved in the
4.31transaction, and the bullion coins' sale price and melt value;
5.1(4) misrepresent the value of the bullion coins, the delivery date of coins or payment
5.2for coins, or the dealer or representative's professional qualifications, affiliations, or
5.3registration;
5.4(5) misrepresent the manner in which any coins a consumer provides will be stored
5.5or otherwise handled once received;
5.6(6) renegotiate the terms of a sale after receiving a consumer's payment or coins
5.7without first offering the consumer the option to have the payment fully refunded or
5.8the entirety of the coins returned;
5.9(7) fail to respond within three business days to a consumer inquiry about the
5.10delivery status of coins that the consumer has paid for but not yet received or the status of
5.11payment for coins that the consumer has already provided;
5.12(8) telephone or solicit a consumer, or sell or provide the consumer's name to any
5.13other bullion coin dealer or coin dealer representative, after the consumer requests not
5.14to be contacted; or
5.15(9) violate any other Minnesota rule or law.
5.16 Sec. 8. [80G.08] ENFORCEMENT.
5.17 Subdivision 1. Commissioner's authority. The commissioner has all authority
5.18provided under section 45.027 to ensure compliance with this chapter, including but not
5.19limited to the authority to deny, suspend, or revoke the registration of any bullion coin
5.20dealer or coin dealer representative for a violation of this chapter or other Minnesota law.
5.21Appeal from a denial, suspension, or revocation of registration must be made according
5.22to chapter 14.
5.23 Subd. 2. Violation as consumer fraud. A violation of this chapter is a violation of
5.24section 325F.69, subdivision 1, and the provisions of section 8.31 apply.
5.25 Sec. 9. [80G.09] CRIMINAL PENALTY.
5.26A person who conducts business as a bullion coin dealer or as a coin dealer
5.27representative without having first registered with the commissioner, or who carries on the
5.28business after the revocation, suspension, or expiration of a registration, or who violates
5.29section 80G.07, clause (1) or (2), is guilty of a misdemeanor.
5.30 Sec. 10. [80G.10] OTHER ACTION.
5.31Nothing in this chapter precludes an action under chapter 80A.
1.3prohibiting certain conduct; providing enforcement authority and criminal
1.4penalties;proposing coding for new law as Minnesota Statutes, chapter 80G.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [80G.01] DEFINITIONS.
1.7 Subdivision 1. Scope. For the purposes of this chapter, the following terms have the
1.8meanings given in this section.
1.9 Subd. 2. Bullion coin. "Bullion coin" means a coin containing more than one
1.10percent by weight of silver, gold, platinum, or other precious metal.
1.11 Subd. 3. Bullion coin dealer. (a) Subject to the exceptions in paragraph (b),
1.12"bullion coin dealer" means a person who buys, sells, solicits, or markets bullion coins
1.13or investments in bullion coins to consumers and is either incorporated, registered,
1.14domiciled, or otherwise located in the state or who does business with a consumer
1.15domiciled, residing, or otherwise located in the state.
1.16(b) Bullion coin dealer does not include any of the following:
1.17(1) a person who engages in isolated transactions, consisting of less than five bullion
1.18coin transactions with consumers during and 12-month period;
1.19(2) a person who engages in isolated transactions, consisting of bullion coin
1.20transactions with consumers during any 12-month period that do not exceed $5,000 in the
1.21aggregate as determined by the transactions' sale prices;
1.22(3) a person who engages only in wholesale bullion coin transactions with bullion
1.23coin dealers who sell at retail and are properly registered under this chapter; or
2.1(4) a person who engages only in transactions at occasional garage or yard sales
2.2held at the seller's residence, farm auctions held at the seller's residence, or estate sales
2.3held at the decedent's residence.
2.4 Subd. 4. Coin dealer representative. "Coin dealer representative" means a natural
2.5person acting as an employee, contractor, or agent of a bullion coin dealer and who
2.6has interactions with consumers in connection with the buying, selling, solicitation, or
2.7marketing of bullion coins or investments in bullion coins.
2.8 Subd. 5. Commissioner. "Commissioner" means the commissioner of commerce.
2.9 Subd. 6. Melt value. "Melt value" means the reasonable estimated value of a
2.10bullion coin if the item were processed and refined.
2.11 Subd. 7. Person. "Person" has the meaning given in section 325F.68, subdivision 3.
2.12 Sec. 2. [80G.02] REGISTRATION.
2.13 Subdivision 1. Required. It is unlawful for a bullion coin dealer or coin dealer
2.14representative to solicit, market, buy, sell, or deliver bullion coins or investments in
2.15bullion coins to a consumer without having first registered with the commissioner as
2.16provided in this chapter.
2.17 Subd. 2. Obligations. A bullion coin dealer must register itself and each of its coin
2.18dealer representatives with the commissioner. A bullion coin dealer shall verify and certify
2.19in the registration of each coin dealer representative application that the representative
2.20satisfies the requirements of sections 80G.03 and 80G.04. A registration approved by the
2.21commissioner under this chapter expires one year after registration.
2.22 Subd. 3. Application. All applications for registration by a bullion coin dealer
2.23or coin dealer representative must be made on forms approved by the commissioner.
2.24The commissioner may determine the requirements of the application form, and other
2.25materials, if any, that must be appended to it. This determination by the commissioner
2.26is not subject to the rulemaking provisions of chapter 14, including section 14.386. At a
2.27minimum, the application must include the following, as applicable:
2.28(1) the name and business address of the bullion coin dealer and the name and
2.29primary work location of each coin dealer representative. A bullion coin dealer who
2.30desires to carry on business in more than one location shall identify each address where
2.31business is to be conducted; and
2.32(2) a disclosure by each officer and owner of the bullion coin dealer and each coin
2.33dealer representative of all criminal convictions by any court within the last ten years.
2.34 Subd. 4. Notice of address change. A bullion coin dealer must give the
2.35commissioner written notice of a change in the dealer's name, assumed name, business
3.1addresses, or ownership no later than 15 days after the change occurs. A coin dealer
3.2representative must give written notice of a change of work address or name no later than
3.330 days after the change occurs.
3.4 Subd. 5. Fee. The fee for each registration under this chapter shall be as follows:
3.5(1) Bullion coin dealer: $.......
3.6(2) Coin dealer representative: $.......
3.7 Sec. 3. [80G.03] DISQUALIFICATION.
3.8The commissioner shall not accept a registration for a coin dealer representative
3.9who has, within the last 15 years, or for a bullion coin dealer whose owners or officers
3.10have, within the past 15 years:
3.11(1) been convicted in any court of any felony;
3.12(2) been convicted in any court of any crime involving fraud or deceit, theft, or
3.13any financial crime;
3.14(3) been unable to truthfully certify that they have no civil judgments against them,
3.15including but not limited to conciliation court or equivalent judgments, for failure to
3.16account to a customer for money or property received from the customer; or
3.17(4) been unable to truthfully certify that they have not entered into a settlement or
3.18other agreement with any government entity resolving concerns by the government entity
3.19that they had violated consumer protection or unfair trade practice laws.
3.20 Sec. 4. [80G.04] SCREENING PROCESS.
3.21 Subdivision 1. Required. A bullion coin dealer must establish procedures to screen
3.22each of its owners and officers and each coin dealer representative before submitting to
3.23the commissioner the application for initial registration and at renewal. The results of the
3.24screenings must be provided to the commissioner as part of the initial registration and
3.25all renewal registrations.
3.26 Subd. 2. Initial screening. The screening process for initial registration must
3.27be done before the time of hiring and registration. The process must include a national
3.28criminal history record search and a judgment search and county criminal history search
3.29for all counties where the applicant has resided within the immediately preceding five
3.30years, to determine whether the applicant is eligible to be registered under this chapter.
3.31Each bullion coin dealer shall use a vendor that is a member of the National Association of
3.32Professional Background Screeners, or an equivalent vendor, to conduct the background
3.33screening process on its owners and officers and coin dealer representatives.
4.1 Subd. 3. Renewal screening. The screening process for the renewal of a coin dealer
4.2representative's registration must include a national criminal history record search and a
4.3judgment search and county criminal history search for all counties where the individual
4.4has resided since satisfactorily completing the last screening process conducted pursuant
4.5to this chapter. Screening for renewal of coin dealer representative registrations must take
4.6place no more than 60 days before the registration expiration or renewal date.
4.7 Sec. 5. [80G.05] BOND REQUIREMENT.
4.8 Subdivision 1. Surety bond required. A bullion coin dealer shall maintain
4.9a current, valid surety bond issued by a surety company admitted to do business in
4.10Minnesota in an amount no less than the total purchase and sales transactions made during
4.11the 12-month period before registration.
4.12 Subd. 2. Action on bond permitted. An aggrieved consumer may file a claim
4.13with the surety and, if the claim is not paid, is authorized to bring an action based on the
4.14bond and recover against the surety. The commissioner or attorney general may also
4.15file a claim and bring an action on the bond and recover against the surety on behalf of
4.16an aggrieved consumer.
4.17 Sec. 6. [80G.06] DISCLOSURE.
4.18Before the sale of any bullion coins, a bullion coin dealer must disclose to the
4.19consumer in a clear and conspicuous manner the sale price and melt value of the bullion
4.20coins involved in the transaction.
4.21 Sec. 7. [80G.07] PROHIBITED CONDUCT.
4.22A bullion coin dealer or coin dealer representative shall not:
4.23(1) fail to deliver bullion coins to a consumer within the time agreed upon with
4.24the consumer or, if no such agreement exists, within 30 days after the consumer has
4.25paid for the coins;
4.26(2) fail to pay a seller for purchased bullion coins within the time agreed upon
4.27with the consumer or, if no such agreement exists, within 30 days after the consumer
4.28has provided the coins;
4.29(3) fail to provide an invoice at the time of the transaction describing the nature of
4.30the bullion coins involved in the transaction, the quantity of bullion coins involved in the
4.31transaction, and the bullion coins' sale price and melt value;
5.1(4) misrepresent the value of the bullion coins, the delivery date of coins or payment
5.2for coins, or the dealer or representative's professional qualifications, affiliations, or
5.3registration;
5.4(5) misrepresent the manner in which any coins a consumer provides will be stored
5.5or otherwise handled once received;
5.6(6) renegotiate the terms of a sale after receiving a consumer's payment or coins
5.7without first offering the consumer the option to have the payment fully refunded or
5.8the entirety of the coins returned;
5.9(7) fail to respond within three business days to a consumer inquiry about the
5.10delivery status of coins that the consumer has paid for but not yet received or the status of
5.11payment for coins that the consumer has already provided;
5.12(8) telephone or solicit a consumer, or sell or provide the consumer's name to any
5.13other bullion coin dealer or coin dealer representative, after the consumer requests not
5.14to be contacted; or
5.15(9) violate any other Minnesota rule or law.
5.16 Sec. 8. [80G.08] ENFORCEMENT.
5.17 Subdivision 1. Commissioner's authority. The commissioner has all authority
5.18provided under section 45.027 to ensure compliance with this chapter, including but not
5.19limited to the authority to deny, suspend, or revoke the registration of any bullion coin
5.20dealer or coin dealer representative for a violation of this chapter or other Minnesota law.
5.21Appeal from a denial, suspension, or revocation of registration must be made according
5.22to chapter 14.
5.23 Subd. 2. Violation as consumer fraud. A violation of this chapter is a violation of
5.24section 325F.69, subdivision 1, and the provisions of section 8.31 apply.
5.25 Sec. 9. [80G.09] CRIMINAL PENALTY.
5.26A person who conducts business as a bullion coin dealer or as a coin dealer
5.27representative without having first registered with the commissioner, or who carries on the
5.28business after the revocation, suspension, or expiration of a registration, or who violates
5.29section 80G.07, clause (1) or (2), is guilty of a misdemeanor.
5.30 Sec. 10. [80G.10] OTHER ACTION.
5.31Nothing in this chapter precludes an action under chapter 80A.
