reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.07 — Preferred Subrogation Rights Of Self-insurers' Security Fund Or Surety.

79A.07 PREFERRED SUBROGATION RIGHTS OF SELF-INSURERS' SECURITY FUND OR SURETY.
The self-insurers' security fund by making payment of compensation under this chapter has the same preference over the other debts of the principal or the principal's estate as is given by law to the person directly entitled to the compensation.
History:
1988 c 674 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.08 — Legislative Intent.

79A.08 LEGISLATIVE INTENT.
It is the intent of the legislature in enacting sections 79A.08 to 79A.10 to provide for the continuation of workers' compensation benefits delayed due to the failure of a private self-insured employer to meet its compensation obligations, whenever the commissioner of commerce issues a certificate of default or there is a declaration of insolvency by a court of competent jurisdiction. With respect to the continued liability of a surety for claims that arise under a bond after termination of that bond and to a surety's liability for the cost of administration of claims, it is the intent of the legislature to provide that that liability ceases upon lawful termination of that bond. This applies to all surety bonds which are purchased by the self-insured employer after July 1, 1988. The legislature finds and declares that the establishment of the self-insurers' security fund is a necessary component of a complete system of workers' compensation, required by chapter 176, to have adequate provisions for the comfort, health, safety, and general welfare of any and all workers and their dependents to the extent of relieving the consequences of any industrial injury or death, and full provision for securing the payment of compensation.
History:
1988 c 674 s 8; 2023 c 51 art 1 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.10 — Assumption Of Workers' Compensation Obligations Of Insolvent Self-insurer.

79A.10 ASSUMPTION OF WORKERS' COMPENSATION OBLIGATIONS OF INSOLVENT SELF-INSURER.
Subdivision 1.
Order of commissioner.
Upon order of the commissioner pursuant to section 79A.04, subdivision 10, the security fund shall assume the workers' compensation obligations of an insolvent private self-insurer.
Subd. 2.
Act or omissions; penalties.
Notwithstanding subdivision 1, the security fund shall not be liable for the payment of any penalties assessed for any act or omission on the part of any person other than the security fund or its appointed administrator, including, but not limited to, the penalties provided in chapter 176 unless the security fund or its appointed administrator would be subject to penalties under chapter 176 as the result of the actions of the security fund or its administrator.
Subd. 3.
Party in interest.
The security fund shall be a party in interest in all proceedings involving compensation claims against an insolvent self-insurer whose compensation obligations have been paid or assumed by the security fund. The security fund shall have the same rights and defenses as the insolvent private self-insurer, including, but not limited to, all of the following:
(1) to appear, defend, and appeal claims;
(2) to receive notice of, investigate, adjust, compromise, settle, and pay claims; and
(3) to investigate, handle, and deny claims.
Subd. 4.
Payments to security fund.
Notwithstanding anything in this chapter or chapter 176 to the contrary, in the event that the self-insurers' security fund assumes the obligations of any bankrupt or insolvent private self-insurer pursuant to this section, then the proceeds of any surety bond, Workers' Compensation Reinsurance Association, specific excess insurance or aggregate excess insurance policy, and any special compensation fund payment or second injury fund or supplementary benefit reimbursements shall be paid to the self-insurers' security fund instead of the bankrupt or insolvent private self-insurer or its successor in interest. No special compensation fund reimbursements shall be made to the security fund unless the special compensation fund assessments pursuant to section 176.129 are paid and the reports required thereunder are made to the special compensation fund.
History:
1988 c 674 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.12 — Maintenance Of Assets Or Line Of Credit To Continue Payment Of Compensation Obligations.

79A.12 MAINTENANCE OF ASSETS OR LINE OF CREDIT TO CONTINUE PAYMENT OF COMPENSATION OBLIGATIONS.
Subdivision 1.
Assets maintained.
The security fund shall maintain cash, readily marketable securities, or other assets, or a line of credit, approved by the commissioner, sufficient to immediately continue the payment of the compensation obligations of an insolvent private self-insurer pending receipt of the security deposit, surety bond proceeds, irrevocable letter of credit, or, if necessary, assessment of the members. The commissioner may establish the minimum amount to be maintained by, or immediately available to, the security fund for this purpose.
Subd. 2.
Assessment.
The security fund may assess each of its members a pro rata share of the funding necessary to carry out its obligation and the purposes of this chapter. Total annual assessments in any calendar year shall not exceed ten percent of paid indemnity losses, as defined in section 176.129, made by the self-insured employer during the preceding calendar year. The annual assessment calculation shall not include supplementary benefits paid which will be reimbursed by the special compensation fund. Funds obtained by assessments pursuant to this subdivision may only be used for the purposes of this chapter. The trustees shall certify to the commissioner the collection and receipt of all money from assessments, noting any delinquencies. The trustees shall take any action deemed appropriate to collect any delinquent assessments.
History:
1988 c 674 s 12; 1990 c 450 s 2; 2005 c 132 s 33
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.13 — Audit; Annual Report.

79A.13 AUDIT; ANNUAL REPORT.
The trustees shall annually contract for an independent certified audit of the financial activities of the fund. An annual report on the financial status of the fund as of June 30 shall be submitted to the commissioner and to each member.
The security fund shall be established on July 1, 1988, or 90 days after July 1, 1988, whichever occurs later. All applications for private self-insurers which are made after July 1, 1988, prior to the establishment of the security fund, shall comply with all requirements of this chapter. Applications for private self-insurers which are made after January 1, 1988, but prior to July 1, 1988, shall, prior to the establishment of the security fund, comply with the requirements of this chapter. The security fund shall be liable for payment of benefits only for members where there has been a declaration of insolvency by a court of competent jurisdiction after the date on which the security fund is established, or where the commissioner has issued a certificate of default which has occurred after the date on which the security fund is established.
History:
1988 c 674 s 13; 2023 c 51 art 1 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.14 — Letter Of Credit Form.

79A.14 LETTER OF CREDIT FORM.
The form for the letter of credit under this chapter shall be:
Effective Date
State of Minnesota (Beneficiary)
(Address)
Dear Sirs:
By order of ....................(Self-Insurer) we are instructed to open a clean irrevocable Letter of Credit in your favor for United States $.................(Amount).
We undertake that drawings under this Letter of Credit will be honored upon presentation of your draft drawn on ...............(issuing bank), at ...............(Address) prior to expiration date.
The Letter of Credit expires on ..............., but will automatically extend for an additional one year if you have not received by registered mail notification of intention not to renew 60 days prior to the original expiration date and each subsequent expiration date.
Except as expressly stated herein, this undertaking is not subject to any condition or qualification. The obligation of .................(issuing bank) under this letter of credit shall be the individual obligation of .................(issuing bank), in no way contingent upon reimbursement with respect thereto.
Very truly yours,
. (Signature)
History:
1988 c 674 s 14; 1990 c 426 art 1 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.16 — Open Meeting; Administrative Procedure Act.

79A.16 OPEN MEETING; ADMINISTRATIVE PROCEDURE ACT.
The security fund and its board of trustees shall not be subject to (1) the Open Meeting Law, chapter 13D, (2) the Open Appointments Law, (3) the Minnesota Government Data Practices Act, chapter 13, and (4) except where specifically set forth, the Administrative Procedure Act.
The Self-Insurers' Advisory Committee shall not be subject to clauses (2) and (4).
History:
1988 c 674 s 16; 2012 c 290 s 67
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.17 — Rules.

79A.17 RULES.
The commissioner may adopt, amend, and repeal rules reasonably necessary to carry out the purposes of sections 79A.01 to 79A.17. This authorization includes, but is not limited to, the adoption of rules to do all of the following:
(1) except as otherwise specifically provided by statute, specifying what constitutes ability to self-insure and to pay any compensation which may become due under chapter 176;
(2) specifying what constitutes a failure or inability to fulfill an insolvent self-insurer's obligations under this chapter;
(3) interpreting and defining the terms used in this chapter;
(4) establishing procedures and standards for hearing and determinations and providing for those determinations to be appealed;
(5) except where otherwise specifically provided by statute, specifying the standards, forms, and content of agreements, forms, and reports between parties who have obligations pursuant to this chapter;
(6) providing for the combinations and relative liabilities of security deposits, assumptions, and guarantees used pursuant to this chapter; and
(7) disclosing otherwise private data concerning self-insurers to courts or the self-insurers' security fund and specifying appropriate safeguards for that information.
The Self-Insurers' Advisory Committee may make recommendations to the commissioner under this section as it deems appropriate.
History:
1988 c 674 s 17
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.18 — Existing Rules.

79A.18 EXISTING RULES.
If there is any inconsistency among any rule or statute and Laws 1988, chapter 674, Laws 1988, chapter 674, shall govern.
History:
1988 c 674 s 21
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.19 — Commercial Self-insurance Groups; Definitions.

79A.19 COMMERCIAL SELF-INSURANCE GROUPS; DEFINITIONS.
Subdivision 1.
Scope.
For the purposes of sections 79A.19 to 79A.32, the terms defined in this section have the meanings given them. If there is any inconsistency between this section and section 79A.01, the provisions of this section shall govern.
Subd. 2.
Accountant.
"Accountant" means a certified public accountant who is not an employee of any member of the commercial self-insurance group and is not affiliated with any individual or organization providing services other than accounting services to the group.
Subd. 3.
Actuary.
"Actuary" means an individual who has attained the status of associate or fellow of the Casualty Actuarial Society who is not an employee of any member of the commercial self-insurance group and is not affiliated with any individual or organization providing services other than actuarial services to the group.
Subd. 4.
Common claims fund.
"Common claims fund" means the cash, cash equivalents, or investment accounts maintained by the commercial self-insurance group to pay its workers' compensation liabilities.
Subd. 5.
Member.
"Member" means an employer that participates in a commercial self-insurance group.
Subd. 6.
Commercial self-insurance group.
"Commercial self-insurance group" means a group of employers that are self-insured for workers' compensation under chapter 176 and elects to operate under sections 79A.19 to 79A.32 rather than sections 79A.01 to 79A.18.
Subd. 7.
Commercial self-insurance group security fund.
"Commercial self-insurance group security fund" means the commercial self-insurance group security fund established pursuant to this chapter.
Subd. 8.
Trustees.
"Trustees" means the board of trustees of the commercial self-insurance group security fund.
History:
1995 c 231 art 2 s 28
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.20 — Eligibility Requirements For Commercial Self-insurance Groups.

79A.20 ELIGIBILITY REQUIREMENTS FOR COMMERCIAL SELF-INSURANCE GROUPS.
Subdivision 1.
Group eligibility.
A commercial self-insurance group consists of two or more employers in similar industries. The commercial self-insurance group shall not incorporate or form a business trust pursuant to chapter 318.
Subd. 2.
Membership eligibility.
A commercial self-insurance group may only admit employers who meet the eligibility requirements established by the group including financial criteria, underwriting guidelines, risk profile, and any other requirements stated in the commercial self-insurance group's bylaws or plan of operation.
History:
1995 c 231 art 2 s 29
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.27 — Indemnity Agreement Form.

79A.27 INDEMNITY AGREEMENT FORM.
INDIVIDUAL AND PROPORTIONATE INDEMNITY AGREEMENT
WHEREAS, (name of company) has agreed to be and has been accepted as a member of (name of commercial self-insurance group).
WHEREAS, (name of company) has agreed to be bound by all of the provisions of the Minnesota Workers' Compensation Act and all rules promulgated thereunder.
WHEREAS, that (name of company) has agreed to be bound by bylaws or plan of operation and all amendments thereto of (name of commercial self-insurance group);
NOW THEREFORE, IT IS AGREED that:
1. (Name of company) shall be jointly and severally liable for all claims and expenses of all the members of (name of commercial self-insurance group) arising in any fund year in which (name of company) is a member of the commercial self-insurance group.
2. (Name of commercial self-insurance group) shall assess (name of company) on an individual and proportionate basis for its share of the total liability of the commercial self-insurance group.
3. In the event that (name of company) is not a member for the full year, it shall be only liable for a pro rata share of that liability.
IN WITNESS WHEREOF, the (name of company) and (name of commercial self-insurance group) have caused this indemnity agreement to be executed by its authorized officers:
Commercial Self-Insurance Group Name
Company Name
By: .
By: .
date: .
date: .
History:
1995 c 231 art 2 s 36
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.28 — Open Meeting; Administrative Procedure Act.

79A.28 OPEN MEETING; ADMINISTRATIVE PROCEDURE ACT.
The commercial self-insurance group security fund and its board of trustees shall not be subject to:
(1) the Open Meeting Law, chapter 13D;
(2) the Open Appointments Law;
(3) the Minnesota Government Data Practices Act, chapter 13; and
(4) except where specifically set forth, the Administrative Procedure Act.
History:
1995 c 231 art 2 s 37; 2012 c 290 s 68
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.29 — Rules.

79A.29 RULES.
The commissioner may adopt, amend, and repeal rules reasonably necessary to carry out the purposes of this chapter. Minnesota Rules, chapter 2780, shall apply to commercial self-insurance groups unless otherwise specified by rule.
History:
1995 c 231 art 2 s 38
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.30 — Governing Law.

79A.30 GOVERNING LAW.
If there is any inconsistency between sections 79A.19 to 79A.32 and any other statute or rule, the provisions of sections 79A.19 to 79A.32 shall govern with respect to commercial self-insurance groups.
History:
1995 c 231 art 2 s 39
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.31 — Commercial Self-insurance Group Security Fund Membership; Withdrawal From Self-insurers' Security Fund.

79A.31 COMMERCIAL SELF-INSURANCE GROUP SECURITY FUND MEMBERSHIP; WITHDRAWAL FROM SELF-INSURERS' SECURITY FUND.
Subdivision 1.
Withdrawal.
Any group self-insurer that is a member of the self-insurers' security fund established under section 79A.09, may elect to withdraw from that fund and become a member of the commercial self-insurance group security fund established under section 79A.26. The transferring group shall be subject to the provisions and requirements of sections 79A.19 to 79A.32 as of the date of transfer. Additional security may be required pursuant to section 79A.24. Group self-insurers electing to transfer to the commercial self-insurance group fund shall not be subject to the provisions of section 79A.06, subdivision 5, including, but not limited to, assessments by the self-insurers' security fund. Notice of transfer must be filed by November 1 for all transfers that must be effective at midnight on December 31.
Subd. 2.
Transfer; notice to commissioner.
A group self-insurer shall provide to the commissioner written notice of its intent to transfer membership to the commercial self-insurance group security fund. The notice shall be sent at least 30 days prior to the date the group self-insurer requests membership in the commercial self-insurance group security fund.
Subd. 3.
Transfer of potential and contingent liabilities.
Upon transfer pursuant to subdivision 1, the commercial self-insurance group security fund shall assume all of the past, present, and future potential and contingent workers' compensation liabilities of the transferring group in the event of any bankruptcy or insolvency of that group or its failure to meet its obligations under this chapter and chapter 176.
Subd. 4.
Election.
A group self-insurer established after August 1, 1995, may elect to become a member of either the self-insurers' security fund or the commercial self-insurance group security fund. However, once the election is made, a group may not transfer to the other security fund.
History:
1995 c 231 art 2 s 40; 1996 c 305 art 1 s 26; 1998 c 339 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.32 — Reporting To Licensed Data Service Organizations.

79A.32 REPORTING TO LICENSED DATA SERVICE ORGANIZATIONS.
Subdivision 1.
[Repealed by amendment, 2006 c 255 s 71]
Subd. 2.
Permitted activity.
Through data service organizations licensed under chapter 79, self insurers may:
(1) individually, or with self-insurers commonly owned, managed, or controlled, conduct research and collect statistics to investigate, identify, and classify information relating to causes or prevention of losses; and
(2) at the request of a private self-insurer or self-insurer group, submit and collect data, including payroll and loss data; and perform calculations, including calculations of experience modifications of individual self-insured employers.
Subd. 3.
[Repealed by amendment, 2006 c 255 s 71]
History:
1995 c 231 art 2 s 41; 2006 c 255 s 71
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.40 — Section 101; Short Title.

80A.40 SECTION 101; SHORT TITLE.
This chapter may be cited as the "Minnesota Securities Act."
History:
2006 c 196 art 1 s 1,52; 2008 c 256 s 1
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.42 — Section 103; References To Federal Statutes.

80A.42 SECTION 103; REFERENCES TO FEDERAL STATUTES.
"Securities Act of 1933" (15 U.S.C. Section 77a et seq.), "Securities Exchange Act of 1934" (15 U.S.C. Section 78a et seq.), "Public Utility Holding Company Act of 1935" (15 U.S.C. Section 79 et seq.), "Investment Company Act of 1940" (15 U.S.C. Section 80a-1 et seq.), "Investment Advisers Act of 1940" (15 U.S.C. Section 80b-1 et seq.), "Employee Retirement Income Security Act of 1974" (29 U.S.C. Section 1001 et seq.), "National Housing Act" (12 U.S.C. Section 1701 et seq.), "Commodity Exchange Act" (7 U.S.C. Section 1 et seq.), "Internal Revenue Code" (26 U.S.C. Section 1 et seq.), "Securities Investor Protection Act of 1970" (15 U.S.C. Section 78aaa et seq.), "Securities Litigation Uniform Standards Act of 1998" (112 Stat. 3227), "Small Business Investment Act of 1958" (15 U.S.C. Section 661 et seq.), and "Electronic Signatures in Global and National Commerce Act" (15 U.S.C. Section 7001 et seq.) mean those statutes and the rules and regulations adopted under those statutes, as in effect on the date of enactment of this chapter, or as later amended.
History:
2006 c 196 art 1 s 3,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.43 — Section 104; References To Federal Agencies.

80A.43 SECTION 104; REFERENCES TO FEDERAL AGENCIES.
A reference in this chapter to an agency or department of the United States is also a reference to a successor agency or department.
History:
2006 c 196 art 1 s 4,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.44 — Section 105; Electronic Records And Signatures.

80A.44 SECTION 105; ELECTRONIC RECORDS AND SIGNATURES.
This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that act (15 U.S.C. Section 7003(b)). This chapter authorizes the filing of records and signatures, when specified by provisions of this chapter or by a rule adopted or order issued under this chapter, in a manner consistent with Section 104(a) of that act (15 U.S.C. Section 7004(a)).
History:
2006 c 196 art 1 s 5,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.47 — Section 203; Additional Exemptions And Waivers.

80A.47 SECTION 203; ADDITIONAL EXEMPTIONS AND WAIVERS.
A rule adopted or order issued under this chapter may exempt a security, transaction, or offer; a rule under this chapter may exempt a class of securities, transactions, or offers from any or all of the requirements of sections 80A.49 through 80A.54 and 80A.71; and an order under this chapter may waive, in whole or in part, any or all of the conditions for an exemption or offer under sections 80A.45 and 80A.46.
History:
2006 c 196 art 1 s 8,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.48 — Section 204; Denial, Suspension, Revocation, Condition, Or Limitation Of Exemptions.

80A.48 SECTION 204; DENIAL, SUSPENSION, REVOCATION, CONDITION, OR LIMITATION OF EXEMPTIONS.
(a)
Enforcement related powers.
Except with respect to a federal covered security or a transaction involving a federal covered security, an order under this chapter may deny, suspend application of, condition, limit, or revoke an exemption created under section 80A.45(3)(C), (7) or (8) or 80A.46 or an exemption or waiver created under section 80A.47 with respect to a specific security, transaction, or offer. An order under this section may be issued only pursuant to the procedures in section 80A.54(d) or 80A.81 and only prospectively.
(b)
Knowledge of order required.
A person does not violate sections 80A.49, 80A.51 through 80A.54, 80A.71, or 80A.77 by an offer to sell, offer to purchase, sale, or purchase effected after the entry of an order issued under this section if the person did not know, and in the exercise of reasonable care could not have known, of the order.
History:
2006 c 196 art 1 s 9,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.49 — Section 301; Securities Registration Requirement.

80A.49 SECTION 301; SECURITIES REGISTRATION REQUIREMENT.
It is unlawful for a person to offer or sell a security in this state unless:
(1) the security is a federal covered security;
(2) the security, transaction, or offer is exempted from registration under sections 80A.45 through 80A.47; or
(3) the security is registered under this chapter.
History:
2006 c 196 art 1 s 10,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.55 — Section 307; Waiver And Modification.

80A.55 SECTION 307; WAIVER AND MODIFICATION.
The administrator may waive or modify, in whole or in part, any or all of the requirements of sections 80A.50, 80A.51, and 80A.52(b) or the requirement of any information or record in a registration statement or in a periodic report filed pursuant to section 80A.53(h).
History:
2006 c 196 art 1 s 16,52; 2008 c 256 s 7
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.60 — Section 405; Federal Covered Investment Adviser Notice Filing Requirement.

80A.60 SECTION 405; FEDERAL COVERED INVESTMENT ADVISER NOTICE FILING REQUIREMENT.
(a)
Notice filing requirement.
Except with respect to a federal covered investment adviser described in subsection (b), it is unlawful for a federal covered investment adviser to transact business in this state as a federal covered investment adviser unless the federal covered investment adviser complies with subsection (c).
(b)
Notice filing requirement not required.
The following federal covered investment advisers are not required to comply with subsection (c):
(1) a federal covered investment adviser without a place of business in this state if its only clients in this state are:
(A) federal covered investment advisers, investment advisers registered under this chapter, and broker-dealers registered under this chapter;
(B) institutional investors;
(C) accredited investors;
(D) bona fide preexisting clients whose principal places of residence are not in this state; or
(E) other clients specified by rule adopted or order issued under this chapter;
(2) a federal covered investment adviser without a place of business in this state if the person has had, during the preceding 12 months, not more than five clients that are resident in this state in addition to those specified under paragraph (1); and
(3) any other person excluded by rule adopted or order issued under this chapter.
(c)
Notice filing procedure.
A person acting as a federal covered investment adviser, not excluded under subsection (b), shall file a notice, a consent to service of process complying with section 80A.88, and such records as have been filed with the Securities and Exchange Commission under the Investment Advisers Act of 1940 required by rule adopted or order issued under this chapter and pay the fees specified in section 80A.65.
(d)
Effectiveness of filing.
The notice under subsection (c) becomes effective upon its filing and remains effective through December 31 of the year following the year in which it is filed. The notice may be renewed annually in such manner as prescribed by the administrator.
History:
2006 c 196 art 1 s 20,52; 2008 c 256 s 11
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.62 — Section 407; Succession And Change In Registration Of Broker-dealer Or Investment Adviser.

80A.62 SECTION 407; SUCCESSION AND CHANGE IN REGISTRATION OF BROKER-DEALER OR INVESTMENT ADVISER.
(a)
Succession.
A broker-dealer or investment adviser may succeed to the current registration of another broker-dealer or investment adviser or a notice filing of a federal covered investment adviser, and a federal covered investment adviser may succeed to the current registration of an investment adviser or notice filing of another federal covered investment adviser, by filing as a successor an application for registration pursuant to section 80A.56 or 80A.58 or a notice pursuant to section 80A.60 for the unexpired portion of the current registration or notice filing.
(b)
Organizational change.
A broker-dealer or investment adviser that changes its form of organization or state of incorporation or organization may continue its registration by filing an amendment to its registration if the change does not involve a material change in its financial condition or management. The amendment becomes effective when filed or on a date designated by the registrant in its filing. The new organization is a successor to the original registrant for the purposes of this chapter. If there is a material change in financial condition or management, the broker-dealer or investment adviser shall file a new application for registration. A predecessor registered under this chapter shall stop conducting its securities business other than winding down transactions and shall file for withdrawal of broker-dealer or investment adviser registration within 45 days after filing its amendment to effect succession.
(c)
Name change.
A broker-dealer or investment adviser that changes its name may continue its registration by filing an amendment to its registration. The amendment becomes effective when filed or on a date designated by the registrant.
(d)
Change of control.
A change of control of a broker-dealer or investment adviser may be made in accordance with a rule adopted or order issued under this chapter.
History:
2006 c 196 art 1 s 22,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.63 — Section 408; Termination Of Employment Or Association Of Agent And Transfer Of Employment Or Association.

80A.63 SECTION 408; TERMINATION OF EMPLOYMENT OR ASSOCIATION OF AGENT AND TRANSFER OF EMPLOYMENT OR ASSOCIATION.
(a)
Notice of termination.
If an agent registered under this chapter terminates employment by or association with a broker-dealer or issuer, or terminates activities that require registration as an agent, the broker-dealer, or issuer shall promptly file a notice of termination. If the registrant learns that the broker-dealer or issuer has not filed the notice, the registrant may do so.
(b)
Transfer of employment or association.
If an agent registered under this chapter terminates employment by or association with a broker-dealer registered under this chapter and begins employment by or association with another broker-dealer registered under this chapter, then upon the filing by or on behalf of the registrant, within 30 days after the termination, of an application for registration that complies with the requirement of section 80A.61(a) and payment of the filing fee required under section 80A.65, the registration of the agent is:
(1) immediately effective as of the date of the completed filing, if the agent's Central Registration Depository record or successor record does not contain a new or amended disciplinary disclosure within the previous 12 months; or
(2) temporarily effective as of the date of the completed filing, if the agent's Central Registration Depository record or successor record contains a new or amended disciplinary disclosure within the preceding 12 months.
(c)
Withdrawal of temporary registration.
The administrator may withdraw a temporary registration if there are or were grounds for discipline as specified in section 80A.67 and the administrator does so within 30 days after the filing of the application. If the administrator does not withdraw the temporary registration within the 30-day period, registration becomes automatically effective on the 31st day after filing.
(d)
Power to prevent registration.
The administrator may prevent the effectiveness of a transfer of an agent under subsection (b)(1) or (2) based on the public interest and the protection of investors.
(e)
Termination of registration or application for registration.
If the administrator determines that a registrant or applicant for registration is no longer in existence or has ceased to act as a broker-dealer, agent, or investment adviser, or is the subject of an adjudication of incapacity or is subject to the control of a committee, conservator, or guardian, or cannot reasonably be located, a rule adopted or order issued under this chapter may require the registration be canceled or terminated or the application denied. The administrator may reinstate a canceled or terminated registration, with or without hearing, and may make the registration retroactive.
History:
2006 c 196 art 1 s 23,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.64 — Section 409; Withdrawal Of Registration Of Broker-dealer, Agent, And Investment Adviser.

80A.64 SECTION 409; WITHDRAWAL OF REGISTRATION OF BROKER-DEALER, AGENT, AND INVESTMENT ADVISER.
Withdrawal of registration by a broker-dealer, agent, or investment adviser becomes effective 60 days after the filing of the application to withdraw or within any shorter period as provided by rule adopted or order issued under this chapter unless a revocation or suspension proceeding is pending when the application is filed. If a proceeding is pending, withdrawal becomes effective when and upon such conditions as required by rule adopted or order issued under this chapter. The administrator may institute a revocation or suspension proceeding under section 80A.67 within one year after the withdrawal became effective automatically and issue a revocation or suspension order as of the last date on which registration was effective if a proceeding is not pending.
History:
2006 c 196 art 1 s 24,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.68 — Section 501; General Fraud.

80A.68 SECTION 501; GENERAL FRAUD.
It is unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly:
(1) to employ a device, scheme, or artifice to defraud;
(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make a statement made, in the light of the circumstances under which it is made, not misleading; or
(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
History:
2006 c 196 art 1 s 28,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.69 — Section 502; Prohibited Conduct In Providing Investment Advice.

80A.69 SECTION 502; PROHIBITED CONDUCT IN PROVIDING INVESTMENT ADVICE.
(a)
Fraud in providing investment advice.
It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or promulgates analyses or reports relating to securities:
(1) to employ a device, scheme, or artifice to defraud another person; or
(2) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
(b)
Rules defining fraud.
A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.
(c)
Rules specifying contents of advisory contract.
A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser.
History:
2006 c 196 art 1 s 29,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.70 — Section 503; Evidentiary Burden.

80A.70 SECTION 503; EVIDENTIARY BURDEN.
(a)
Civil.
In a civil action or administrative proceeding under this chapter, a person claiming an exemption, exception, preemption, or exclusion has the burden to prove the applicability of the claim.
(b)
Criminal.
In a criminal proceeding under this chapter, a person claiming an exemption, exception, preemption, or exclusion has the burden of going forward with evidence of the claim.
History:
2006 c 196 art 1 s 30,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.71 — Section 504; Filing Of Sales And Advertising Literature.

80A.71 SECTION 504; FILING OF SALES AND ADVERTISING LITERATURE.
(a)
Filing requirement.
Except as otherwise provided in subsection (b), a rule adopted or order issued under this chapter may require the filing of a prospectus, pamphlet, circular, form letter, advertisement, sales literature, or other advertising record relating to a security or investment advice, addressed or intended for distribution to prospective investors, including clients or prospective clients of a person registered or required to be registered as an investment adviser under this chapter.
(b)
Excluded communications.
This section does not apply to sales and advertising literature specified in subsection (a) which relates to a federal covered security, a federal covered investment adviser, or a security or transaction exempted by section 80A.45, 80A.46, or 80A.47 except as required pursuant to section 80A.45(7).
History:
2006 c 196 art 1 s 31,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.72 — Section 505; Misleading Filings.

80A.72 SECTION 505; MISLEADING FILINGS.
It is unlawful for a person to make or cause to be made, in a record that is used in an action or proceeding or filed under this chapter other than a contested case hearing, a statement that, at the time and in the light of the circumstances under which it is made, is false or misleading in a material respect, or, in connection with the statement, to omit to state a material fact necessary to make the statement made, in the light of the circumstances under which it was made, not false or misleading.
History:
2006 c 196 art 1 s 32,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.73 — Section 506; Misrepresentations Concerning Registration Or Exemption.

80A.73 SECTION 506; MISREPRESENTATIONS CONCERNING REGISTRATION OR EXEMPTION.
The filing of an application for registration, a registration statement, a notice filing under this chapter, the registration of a person, the notice filing by a person, or the registration of a security under this chapter does not constitute a finding by the administrator that a record filed under this chapter is true, complete, and not misleading. The filing or registration or the availability of an exemption, exception, preemption, or exclusion for a security or a transaction does not mean that the administrator has passed upon the merits or qualifications of, or recommended or given approval to, a person, security, or transaction. It is unlawful to make, or cause to be made, to a purchaser, customer, client, or prospective customer or client a representation inconsistent with this section.
History:
2006 c 196 art 1 s 33,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.74 — Section 507; Qualified Immunity.

80A.74 SECTION 507; QUALIFIED IMMUNITY.
A broker-dealer, agent, investment adviser, federal covered investment adviser, or investment adviser representative is not liable to another broker-dealer, agent, investment adviser, federal covered investment adviser, or investment adviser representative for defamation relating to a statement that is contained in a record required by the administrator, or designee of the administrator, the Securities and Exchange Commission, or a self-regulatory organization, unless the person knew, or should have known at the time that the statement was made, that is was false in a material respect or the person acted in reckless disregard of the statement's truth or falsity.
History:
2006 c 196 art 1 s 34,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.75 — Section 508; Criminal Penalties.

80A.75 SECTION 508; CRIMINAL PENALTIES.
(a)
Criminal penalties.
A person that willfully violates this chapter, or a rule adopted or order issued under this chapter, except section 80A.71 or the notice filing requirements of section 80A.50 or 80A.60, or that willfully violates section 80A.72 knowing the statement made to be false or misleading in a material respect, upon conviction, shall be fined not more than $10,000 or imprisoned not more than five years or both. Each of the acts specified constitutes a separate offense and a prosecution or conviction for any such offense does not bar prosecution or conviction for any other offense.
(b)
Criminal reference not required.
The attorney general with or without a reference from the administrator, may institute criminal proceedings under this chapter.
(c)
No limitation on other criminal enforcement.
This chapter does not limit the power of this state to punish a person for conduct that constitutes a crime under other laws of this state.
History:
2006 c 196 art 1 s 35,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.78 — Section 601; Administration.

80A.78 SECTION 601; ADMINISTRATION.
(a)
Administration.
The administrator shall administer this chapter.
(b)
Unlawful use of records or information.
It is unlawful for the administrator or an officer, employee, or designee of the administrator to use for personal benefit or the benefit of others records or other information obtained by or filed with the administrator that are not public under section 80A.84(b). This chapter does not authorize the administrator or an officer, employee, or designee of the administrator to disclose the record or information, except in accordance with section 80A.79, 80A.84(c), or 80A.85.
(c)
No privilege or exemption created or diminished.
This chapter does not create or diminish a privilege or exemption that exists at common law, by statute or rule, or otherwise.
(d)
Investor education.
The administrator may develop and implement investor education initiatives to inform the public about investing in securities, with particular emphasis on the prevention and detection of securities fraud. In developing and implementing these initiatives, the administrator may collaborate with public and nonprofit organizations with an interest in investor education. The administrator may accept a grant or donation from a person that is not affiliated with the securities industry or from a nonprofit organization, regardless of whether the organization is affiliated with the securities industry, to develop and implement investor education initiatives. This subsection does not authorize the administrator to require participation or monetary contributions of a registrant in an investor education program.
History:
2006 c 196 art 1 s 38,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.80 — Section 603; Civil Enforcement.

80A.80 SECTION 603; CIVIL ENFORCEMENT.
(a)
Civil action instituted by administrator.
If the administrator believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has, is, or is about to engage in an act, practice, or course of business that materially aids a violation of this chapter or a rule adopted or order issued under this chapter, the administrator may maintain an action in the district court to enjoin the act, practice, or course of business and to enforce compliance with this chapter or a rule adopted or order issued under this chapter.
(b)
Relief available.
In an action under this section and on a proper showing, the court may:
(1) issue a permanent or temporary injunction, restraining order, or declaratory judgment;
(2) order other appropriate or ancillary relief, which may include:
(A) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator, that may be the administrator, for the defendant or the defendant's assets;
(B) ordering the administrator to take charge and control of a defendant's property, including investment accounts and accounts in a depository institution, rents, and profits; to collect debts; and to acquire and dispose of property;
(C) imposing a civil penalty up to $10,000 for each violation; an order of rescission, restitution, or disgorgement directed to a person that has engaged in an act, practice, or course of business constituting a violation of this chapter or the predecessor act or a rule adopted or order issued under this chapter or the predecessor act; and
(D) ordering the payment of prejudgment and postjudgment interest; or
(3) order such other relief as the court considers appropriate.
(c)
No bond required.
The administrator may not be required to post a bond in an action or proceeding under this chapter.
History:
2006 c 196 art 1 s 40,52
2023 Minnesota Statutes › Chapters 80 - 80A — Securities › Chapter 80A — Regulation Of Securities › Section 80A.83 — Section 606; Administrative Files And Opinions.

80A.83 SECTION 606; ADMINISTRATIVE FILES AND OPINIONS.
(a)
Public register of filings.
The administrator shall maintain, or designate a person to maintain, a register of applications for registration of securities; registration statements; notice filings; applications for registration of broker-dealers, agents, and investment advisers; notice filings by federal covered investment advisers that are or have been effective under this chapter or the predecessor act; notices of claims of exemption from registration or notice filing requirements contained in a record; orders issued under this chapter or the predecessor act; and interpretative opinions or no action determinations issued under this chapter.
(b)
Public availability.
The administrator shall make all rules, forms, interpretative opinions, and orders available to the public.
(c)
Copies of public records.
The administrator shall furnish a copy of a record that is a public record or a certification that the public record does not exist to a person that so requests. A rule adopted under this chapter may establish a reasonable charge for furnishing the record or certification. A copy of the record certified or a certificate by the administrator of a record's nonexistence is prima facie evidence of a record or its nonexistence.
History:
2006 c 196 art 1 s 43,52; 2008 c 256 s 18