1.1.................... moves to amend H.F. No. 914 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 47.60, subdivision 4, is amended to read:
1.4    Subd. 4. Books of account; annual report; schedule of charges; disclosures. (a)
1.5A lender filing under subdivision 3 shall keep and use in the business books, accounts,
1.6and records as will enable the commissioner to determine whether the filer is complying
1.7with this section.
1.8(b) A lender filing under subdivision 3 shall annually on or before March 15 file a
1.9report to the commissioner giving the information the commissioner reasonably requires
1.10concerning the business and operations during the preceding calendar year, including the
1.11information required to be reported under section 47.601, subdivision 5.
1.12(c) A lender filing under subdivision 3 shall display prominently in each place of
1.13business a full and accurate schedule, to be approved by the commissioner, of the charges
1.14to be made and the method of computing those charges. A lender shall furnish a copy of
1.15the contract of loan to a person obligated on it or who may become obligated on it at any
1.16time upon the request of that person. This is in addition to any disclosures required by the
1.17federal Truth in Lending Act, United States Code, title 15.
1.18(d) A lender filing under subdivision 3 shall, upon repayment of the loan in
1.19full, mark indelibly every obligation signed by the borrower with the word "Paid" or
1.20"Canceled" within 20 days after repayment.
1.21(e) A lender filing under subdivision 3 shall display prominently, in each licensed
1.22place of business, a full and accurate statement of the charges to be made for loans made
1.23under this section. The statement of charges must be displayed in a notice, on plastic or
1.24other durable material measuring at least 12 inches by 18 inches, headed "CONSUMER
1.25NOTICE REQUIRED BY THE STATE OF MINNESOTA." The notice shall include,
1.26immediately above the statement of charges, the following sentence, or a substantially
1.27similar sentence approved by the commissioner: "These loan charges are higher than
2.1otherwise permitted under Minnesota law. Minnesota law permits these higher charges
2.2only because short-term small loans might otherwise not be available to consumers. If
2.3you have another source of a loan, you may be able to benefit from a lower interest rate
2.4and other loan charges." The notice must not contain any other statement or information,
2.5unless the commissioner has determined that the additional statement or information is
2.6necessary to prevent confusion or inaccuracy. The notice must be designed with a type
2.7size that is large enough to be readily noticeable and legible. The form of the notice must
2.8be approved by the commissioner prior to its use.
2.9EFFECTIVE DATE.This section is effective for reports made for the 2010
2.10calendar year.

2.11    Sec. 2. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:
2.12    Subd. 6. Penalties for violation. A person An individual or entity or the person's
2.13entity's members, officers, directors, agents, and employees who violate or participate in
2.14the violation of any of the provisions of this section may be is liable in the same manner as
2.15in section 56.19 47.601. A violation of any provision of this section is considered to be
2.16a violation of section 325F.69 and all remedies of section 8.31 are available for such a
2.17violation.
2.18EFFECTIVE DATE.This section is effective August 1, 2009, and applies to loans
2.19made on or after that date.

2.20    Sec. 3. [47.601] CONSUMER SHORT-TERM LOANS.
2.21    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
2.22this subdivision have the meanings given.
2.23(b) "Borrower" means an individual who obtains a consumer short-term loan
2.24primarily for personal, family, or household purposes.
2.25(c) "Commissioner" means the commissioner of commerce.
2.26(d) "Consumer short-term loan" means a loan to a borrower which has a principal
2.27amount, or an advance on a credit limit, of $1,000 or less and requires a minimum
2.28payment within 60 days of loan origination or credit advance of more than 25 percent
2.29of the principal balance or credit advance. For the purposes of this section, each new
2.30advance of money to a borrower under a consumer short-term loan agreement constitutes
2.31a new consumer short-term loan.
2.32(e) "Consumer short-term lender" means an individual or entity engaged in the
2.33business of making or arranging consumer short-term loans, other than a state or federally
2.34chartered bank, savings bank, or credit union.
3.1    Subd. 2. Consumer short-term loan contract. (a) No contract or agreement
3.2between a consumer short-term loan lender and a borrower residing in Minnesota may
3.3contain the following:
3.4(1) a provision selecting a law other than Minnesota law under which the contract
3.5is construed or enforced;
3.6(2) a provision choosing a forum for dispute resolution other than the Minnesota
3.7courts; or
3.8(3) a provision limiting class actions.
3.9(b) Any provision prohibited by paragraph (a) is void and unenforceable.
3.10(c) A consumer short-term loan lender must furnish a copy of the written loan
3.11contract to each borrower. The contract and disclosures must be written in the language in
3.12which the loan was negotiated with the borrower and must contain:
3.13(1) the name; address, which may not be a post office box; and telephone number of
3.14the lender making the consumer short-term loan;
3.15(2) the name and title of the individual employee or representative who signs the
3.16contract on behalf of the lender;
3.17(3) an itemization of the fees and interest charges to be paid by the borrower;
3.18(4) in bold, 24-point type, the annual percentage rate as computed under United
3.19States Code, chapter 15, section 1606; and
3.20(5) a description of the borrower's payment obligations under the loan.
3.21(d) The holder or assignee of a check or other instrument evidencing an obligation of
3.22a borrower in connection with a consumer short-term loan takes the instrument subject to
3.23all claims by and defenses of the borrower against the consumer short-term lender.
3.24    Subd. 3. Debt collection. A consumer short-term lender collecting or attempting to
3.25collect on an indebtedness in connection with a consumer short-term loan must not engage
3.26in the prohibited debt collection practices referenced in section 332.37.
3.27    Subd. 4. Criminal prosecution. A borrower may not be prosecuted under section
3.28609.535 for issuance of a dishonored check.
3.29    Subd. 5. Record keeping; annual reports; notifications. In addition to any other
3.30information required to be filed under chapters 45 through 56, a consumer short-term
3.31lender must annually file a report with the commissioner that contains the following
3.32information for each calendar year:
3.33(1) the total dollar amount, over and above principal, collected on consumer
3.34short-term loans;
3.35(2) the average annual percentage rate and range of annual percentage rates for
3.36consumer short-term loans;
4.1(3) the number of individual borrowers who obtained one or more consumer
4.2short-term loans;
4.3(4) a breakdown of the number of individual borrowers identified in clause (3) by
4.4the number of individual borrowers who obtained:
4.5(i) six or more loans;
4.6(ii) ten or more loans;
4.7(iii) twelve or more loans;
4.8(iv) fifteen or more loans; and
4.9(v) twenty or more loans; and
4.10(5) the total number and dollar amount of loans charged off or written off.
4.11    Subd. 6. Jurisdiction. For the purposes of this section, a consumer short-term
4.12loan transaction is deemed to take place in the State of Minnesota if the borrower is a
4.13Minnesota resident and the borrower completes the transaction, either personally or
4.14electronically, while physically located in the State of Minnesota.
4.15    Subd. 7. Penalties for violation; private right of action. (a) An individual or
4.16entity who violates subdivisions 2, 3, or 4 is liable to the borrower for:
4.17(1) all money collected or received in connection with the loan;
4.18(2) actual, incidental, and consequential damages;
4.19(3) statutory damages of up to $1,000 per violation;
4.20(4) costs, disbursements, and reasonable attorney fees; and
4.21(5) injunctive relief.
4.22(b) In addition to the remedies in paragraph (a), a loan made in violation of any
4.23provision of this section is void, and the borrower is not obligated to pay any amounts
4.24owing.
4.25    Subd. 8. Attorney general enforcement. The attorney general shall enforce this
4.26section under section 8.31.
4.27    Subd. 9. Remedies cumulative. The remedies provided in this section are
4.28cumulative and do not restrict any remedy that is otherwise available. The provisions
4.29of this section are not exclusive and are in addition to any other requirements, rights,
4.30remedies, and penalties provided by law.
4.31EFFECTIVE DATE.This section is effective August 1, 2009, and applies to loans
4.32made on or after that date.

4.33    Sec. 4. Minnesota Statutes 2008, section 53.09, subdivision 2, is amended to read:
5.1    Subd. 2. Annual report. (1) Each industrial loan and thrift company shall annually
5.2on or before the first day of March file a report with the commissioner stating in detail,
5.3under appropriate heads, its assets and liabilities at the close of business on the last day
5.4of the preceding calendar year and, if applicable, information required under section
5.547.601, subdivision 5. This report shall be made under oath in the form prescribed by
5.6the commissioner.
5.7(2) Each industrial loan and thrift company which holds authority to accept accounts
5.8pursuant to section 53.04, subdivision 5, shall in place of the requirement in clause (1)
5.9submit the reports required of state banks pursuant to section 48.48.
5.10(3) Within 30 days following a change in controlling ownership of the capital stock
5.11of an industrial loan and thrift company, it shall file a written report with the commissioner
5.12stating in detail the nature of such change in ownership.
5.13EFFECTIVE DATE.This section is effective for reports made for the 2010
5.14calendar year."