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