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SF 4655

Eliminate obsolete dates for lenders

2025-2026 Regular Session Introduced by Matt Klein

Lenders must register with Minnesota before serving residents or offering student loans, with annual renewals by December 31 and potential use of NMLS and fees.

Referred to Commerce and Consumer Protection
#commerceandcommercedepartment
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WeVote Research Nonpartisan
Bill Summary · SF 4655

Summary of SF 4655 (2025-2026) – Minnesota

Purpose

SF 4655 seeks to modernize and streamline the regulatory framework for lenders operating in Minnesota by eliminating an obsolete date and clarifying registration requirements. The bill amends Minnesota Statutes 2024, section 58B.051, to remove a past-trigger date and to reaffirm ongoing registration requirements for lenders offering student loans in Minnesota.

Key Provisions

  • Elimination of obsolete date: The bill removes the formerly stated starting date (January 1, 2025) for when a lender must register with the commissioner before providing services in Minnesota. The effect is to treat the registration requirement as ongoing and applicable without the need for a sunset or delayed effective date.

  • Registration requirement for lenders (ongoing):

    • A lender must register with the Minnesota Commissioner before providing services in Minnesota and before offering or making a student loan to a Minnesota resident.
    • Registration must be completed using the information specified in the section (see below) and any information the commissioner requires by rule.

  • Registration information (what must be provided with an application):

    • Lender’s name
    • Lender’s address
    • Names of all officers, directors, owners, or other persons in control of the applicant (as defined in § 58B.02, subd. 6)
    • Any other information the commissioner requires by rule

  • Registration term and renewal:

    • Each registration issued or renewed expires on December 31 of the year it is issued.
    • The lender must renew its registration annually.

  • Administrative authority and fees:

    • The commissioner may establish and enforce:
    • Registration procedures for lenders, including the potential use of the Nationwide Multistate Licensing System and Registry (NMLS).
    • Nonrefundable registration fees for lenders, which may include fees associated with NMLS.
    • Procedures and nonrefundable renewal fees for renewing a lender’s registration, potentially including renewal fees for continued use of NMLS.
    • Alternate registration procedures and nonrefundable fees for postsecondary institutions that offer student loans.

Who Is Affected

  • Lenders that provide services in Minnesota or offer student loans to Minnesota residents.
  • Postsecondary institutions that offer student loans (subject to separate registration procedures and fees as determined by the commissioner).
  • Regulatory administrator: Minnesota Commissioner responsible for commerce and consumer protection, and the use of NMLS where applicable.

Procedural and Timeline Aspects

  • Registration cycle: Annual renewals are required; each registration or renewal expires on December 31.
  • Effective date: The obsolete date language has been removed, establishing ongoing registration requirements without a specific past/future trigger date.
  • Rulemaking authority: The commissioner may adopt procedures and fees (including use of NMLS) and may require additional information by rule.

Practical Impact

  • Lenders operating in Minnesota must ensure they are registered before serving Minnesota residents or offering student loans, renewing each year by December 31.
  • The use of NMLS may become a standard avenue for registration and renewal, potentially aligning Minnesota with multistate licensing practices.
  • Nonrefundable fees may apply, and postsecondary institutions offering student loans may face separate registration procedures and fees.

Additional Context

  • The bill is introduced by SF 4655, with co-sponsor Matt Klein, and was introduced on March 18–24, 2026, and referred to the Commerce and Consumer Protection committee.
  • This summary focuses on the substantive text presented in the bill’s amendment to § 58B.051 and the stated administrative provisions.

Compiled from official sources — confirm details with the bill’s official record.

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