| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to cannabis; establishing certain regulations on lenders to cannabis |
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| 3 | 3 | | 1.3 businesses; proposing coding for new law in Minnesota Statutes, chapter 342. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. [342.125] FAIR LENDING REQUIREMENTS. |
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| 6 | 6 | | 1.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
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| 7 | 7 | | 1.7the meanings given. |
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| 8 | 8 | | 1.8 (b) "Borrower" means a person who is a prospective license holder, an applicant for a |
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| 9 | 9 | | 1.9license, or a current license holder under this chapter. |
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| 10 | 10 | | 1.10 (c) "Lender" means an individual or entity that offers or makes a secured or unsecured |
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| 11 | 11 | | 1.11loan or other extension of credit to a borrower. Lender does not include a bank, credit union, |
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| 12 | 12 | | 1.12or any other lender that is under the supervision of or regulated by the Office of the |
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| 13 | 13 | | 1.13Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit |
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| 14 | 14 | | 1.14Union Administration, or the Department of Commerce. |
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| 15 | 15 | | 1.15 (d) "Loan" means a loan offered or made by a lender to a borrower to obtain a license |
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| 16 | 16 | | 1.16under section 342.10 or to obtain real estate, operational funding, equipment, or other |
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| 17 | 17 | | 1.17business necessities to start or operate a cannabis business. For purposes of this section, a |
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| 18 | 18 | | 1.18loan does not include amounts under $10,000. |
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| 19 | 19 | | 1.19 (e) "Loan contract" means the loan agreement between a lender and a borrower. |
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| 20 | 20 | | 1.20 (f) "Person" means: |
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| 21 | 21 | | 1.21 (1) a natural person; |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | 25-04186 as introduced03/20/25 REVISOR RSI/VJ |
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| 24 | 24 | | SENATE |
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| 25 | 25 | | STATE OF MINNESOTA |
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| 26 | 26 | | S.F. No. 3348NINETY-FOURTH SESSION |
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| 27 | 27 | | (SENATE AUTHORS: CLARK) |
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| 28 | 28 | | OFFICIAL STATUSD-PGDATE |
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| 29 | 29 | | Introduction and first reading04/09/2025 |
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| 30 | 30 | | Referred to Commerce and Consumer Protection 2.1 (2) a partnership, as defined in section 323A.0101, clause (8); |
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| 31 | 31 | | 2.2 (3) a limited partnership, as defined in section 321.0102, clause (11); |
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| 32 | 32 | | 2.3 (4) a limited liability partnership, as defined in section 321.0102, clause (9); |
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| 33 | 33 | | 2.4 (5) a limited liability company, as defined in section 322C.0102, subdivision 12; |
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| 34 | 34 | | 2.5 (6) a cooperative, as defined in section 308A.005, subdivision 5, or 308B.005, subdivision |
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| 35 | 35 | | 2.69; |
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| 36 | 36 | | 2.7 (7) a public benefit corporation, as defined in section 304A.021, subdivision 7; |
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| 37 | 37 | | 2.8 (8) a nonprofit corporation organized under chapter 317A; or |
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| 38 | 38 | | 2.9 (9) a privately held company or corporation. |
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| 39 | 39 | | 2.10 Subd. 2.Fair lending requirement.A lender is prohibited from making a loan to a |
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| 40 | 40 | | 2.11borrower unless the loan complies with this section. |
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| 41 | 41 | | 2.12 Subd. 3.Fair lending disclosures; notice; contents.(a) No less than five days before |
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| 42 | 42 | | 2.13a loan contract is executed, a lender must deliver to the borrower an itemized list of |
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| 43 | 43 | | 2.14disclosures. The list must be provided in writing and must clearly and conspicuously identify: |
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| 44 | 44 | | 2.15 (1) the loan's interest rate, expressed as an annual percentage; |
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| 45 | 45 | | 2.16 (2) the finance charges; |
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| 46 | 46 | | 2.17 (3) the payment schedule; |
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| 47 | 47 | | 2.18 (4) the total amount financed; |
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| 48 | 48 | | 2.19 (5) the dates and amounts of a balloon payment, if any; and |
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| 49 | 49 | | 2.20 (6) the total payment amount over the life of the loan. |
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| 50 | 50 | | 2.21 (b) A lender must provide notice of default and a reasonable opportunity to cure before |
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| 51 | 51 | | 2.22exercising an enforcement right granted under a loan contract. |
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| 52 | 52 | | 2.23 (c) The loan contract and all disclosures must be written in the language used to negotiate |
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| 53 | 53 | | 2.24the transaction. |
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| 54 | 54 | | 2.25 Subd. 4.False advertisements or solicitations prohibited.A lender or a person soliciting |
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| 55 | 55 | | 2.26loans on a lender's behalf is prohibited from soliciting a borrower for a loan through an |
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| 56 | 56 | | 2.27advertisement, print, display, publication, correspondence, electronic means, or other manner |
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| 57 | 57 | | 2.28that is false, misleading, or deceptive with respect to the rates, terms, or conditions for a |
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| 58 | 58 | | 2.29loan, credit, goods, or things in action. |
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| 59 | 59 | | 2Section 1. |
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| 60 | 60 | | 25-04186 as introduced03/20/25 REVISOR RSI/VJ 3.1 Subd. 5.Violations.A loan made by a lender in violation of this section is void and the |
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| 61 | 61 | | 3.2borrower is not obligated to pay any amounts owed on the loan. |
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| 62 | 62 | | 3.3 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to loans |
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| 63 | 63 | | 3.4offered or made on or after that date. |
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| 64 | 64 | | 3Section 1. |
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| 65 | 65 | | 25-04186 as introduced03/20/25 REVISOR RSI/VJ |
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