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Grandparents are considered a part of an immediate family. Immediate family is usually defined as one's spouse, parents, grandparents, children, grandchildren, siblings and immediate in-laws (mother-in-law, father-in-law, brother-in-law and sister-in-law). Adopted children and stepchildren also count as immediate family members.
What counts as immediate family? Both the grandmother and the cousin are close family, and for the purposes of the Minnesota law, they'd probably be recognized at immediate family. The spirit of the law is that they don't want you driving with a carload of friends.