SF4070

Purpose

• Establish the Minnesota Consumer Financial Protection Bureau (MCFPB) as a new state agency to enforce consumer financial laws and protect consumers in the financial marketplace.

Key goals and focus

• Create a single point of accountability to oversee consumer financial protections.
• Ensure enforcement against unfair, deceptive, or abusive acts or practices (UDAAP) in consumer finance.
• Promote consumer protections in areas like banking, loans, mortgages, and other financial products.
• Improve financial education and research how people use financial products; monitor markets for new risks.

Main provisions

• Creation and structure

  • The Minnesota Consumer Financial Protection Bureau is created as a standalone bureau.
  • The Bureau is under the governor’s administrative control.
  • A Commissioner (appointed by the governor with Senate advice and consent) leads the Bureau and has duties similar to other agency heads, including enforcing law, handling complaints, and monitoring market risks.

• Commissioner duties

  • Identify and eliminate unfair, deceptive, or abusive acts or practices in consumer finance (UDAAP).
  • Supervise financial companies and enforce consumer finance laws (including anti-discrimination in consumer finance).
  • Accept and investigate consumer complaints.
  • Enhance financial education.
  • Research consumer experiences with financial products.
  • Monitor financial markets for new risks to consumers.

• Rulemaking

  • The Commissioner may adopt rules to administer Bureau activities, following existing state rulemaking procedures.

• Staffing and recruitment

  • The Bureau will recruit investigators with experience from the federal Consumer Financial Protection Bureau (CFPB) and expertise in areas like banking, student loan servicing, mortgages, auto lending, and other financial products.

• Funding

  • The Bureau would receive general fund money for operation and administration in fiscal years 2026 and 2027.

• Cross-referencing and alignment with other statutes

  • The bill adds the MCFPB to certain state cross-references (e.g., Minnesota Statutes definitions related to agency lists) to include the Bureau among state agencies.

• Tribal consultation and tribal implications

  • The bill adds formal definitions and requirements for consultation with Minnesota Tribal governments on matters with Tribal implications.
  • Defines terms like “consultation,” “matters that have Tribal implications,” and “timely and meaningful” consultation.
  • Sets expectations that agencies must demonstrate good faith efforts to seek input from Tribal governments.

• Salaries and compensation

  • The MCFPB is included in the list of agency heads whose salaries are determined by the Compensation Council.
  • The Department of Management and Budget must publish the Bureau head’s salary.

• Unclassified positions

  • Agencies can designate additional unclassified positions, including the MCFPB, subject to specific standards and criteria (e.g., reporting to the agency head, significant discretion, accountability to the governor/agency head, and level at division or bureau director).

Significant changes to existing law

• Creates a new state agency (MCFPB) dedicated to consumer financial protection.
• Shifts or formalizes enforcement focus on UDAAP and consumer financial protections under a dedicated bureau.
• Integrates Tribal consultation processes into matters with Tribal implications and codifies formal engagement requirements.
• Expands the list of agencies for salary determination through the Compensation Council, and requires public salary postings.
• Allows more unclassified leadership positions (including within the MCFPB) to be designated under new criteria.
• Provides initial operating funding for 2026 and 2027 to establish and run the Bureau.

Practical impact (in plain terms)

• Consumers in Minnesota could have a centralized state agency focused on enforcing rules for banks, lenders, and other financial services.
• The Bureau would accept complaints, educate the public, and monitor financial markets for risks that could harm consumers.
• The state would coordinate more with Minnesota Tribal governments on policy matters that affect them.
• Leadership and staffing for the Bureau would come with specific requirements and funding in the near term, with some salary and position changes moving through established state processes.

Note on terminology

• The bill uses terms like Minnesota Consumer Financial Protection Bureau, Commissioner, unfair deceptive or abusive acts or practices (UDAAP), consumer finance, financial products, rulemaking, investigations, and the federal Consumer Financial Protection Bureau (CFPB) as a basis for hiring expertise.

Relevant Terms - Minnesota Consumer Financial Protection Bureau - Bureau - Commissioner - unfair deceptive or abusive acts or practices (UDAAP) - consumer finance / consumer financial laws - financial education - consumer complaints - rulemaking (Chapter 14) - investigations - federal Consumer Financial Protection Bureau (CFPB) - cross-reference to Minnesota Statutes (e.g., 10.65, 15A.0815, 43A.08) - tribal consultation / matters having Tribal implications / Tribal governments - timely and meaningful consultation - general fund appropriations (FY2026 and FY2027) - unclassified positions - Compensation Council / agency head salaries - fiscal governance and administration