Opinion ID: 1608793
Heading Depth: 3
Heading Rank: 4

Heading: Equal Protection and Uniformity Clauses

Text: The scope of protection afforded under the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution and the Uniformity Clause, art. X, § 1 of the Minnesota Constitution is identical. Kuiters v. County of Freeborn, 430 N.W.2d 461, 463 (Minn.1988). Under both clauses, we have held [t]he test to determine the constitutionality of statutory classifications includes three primary elements: (1) The distinctions which separate those included within the classification from those excluded must not be manifestly arbitrary or fanciful but must be genuine and substantial, thereby providing a natural and reasonable basis to justify legislation adapted to peculiar conditions and needs; (2) the classification must be genuine or relevant to the purpose of the law; that is, there must be an evident connection between the distinctive needs peculiar to the class and the prescribed remedy; (3) the purpose of the statute must be one that the state can legitimately attempt to achieve. Miller Brewing Co. v. State, 284 N.W.2d 353, 356 (Minn.1979). The parties agree that when a Minnesota broker provides investment advice directly to an out-of-state investor, the broker's fees are properly attributed to the state in which the investor is located. LBR argues that differentiating between such broker services and similar services provided via a Minnesota mutual fund intermediary is irrational and thus unconstitutional differential treatment. The Commissioner replies that LB Family is itself a customer of LBR and that he is therefore treating Minnesota customerswhether they be individuals or mutual fundsalike. Because LB Family is the consumer of the services at issue, its very existence demonstrates that LBR and direct service providers are not similarly situated. The Commissioner's standard therefore treats all Minnesota vendors and consumers equally and there is no Equal Protection Clause violation. Affirmed.