| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to commerce; establishing a task force on homeowners and commercial |
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| 3 | 3 | | 1.3 property insurance; appropriating money; requiring a report. |
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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. TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY |
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| 6 | 6 | | 1.6INSURANCE. |
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| 7 | 7 | | 1.7 Subdivision 1.Establishment.A task force is established to evaluate issues and provide |
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| 8 | 8 | | 1.8recommendations relating to insurance affordability with respect to single-family housing, |
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| 9 | 9 | | 1.9multifamily rental housing, common interest communities, cooperatives, and small |
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| 10 | 10 | | 1.10businesses, and preventing disruptions or loss to the development, preservation, and long-term |
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| 11 | 11 | | 1.11sustainability of Minnesota's housing infrastructure and small businesses. |
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| 12 | 12 | | 1.12 Subd. 2.Membership.(a) The task force consists of the following: |
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| 13 | 13 | | 1.13 (1) one member appointed by the Department of Commerce; |
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| 14 | 14 | | 1.14 (2) one member from the house of representatives majority party; |
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| 15 | 15 | | 1.15 (3) one member from the house of representatives minority party; |
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| 16 | 16 | | 1.16 (4) one member from the senate majority party; |
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| 17 | 17 | | 1.17 (5) one member from the senate minority party; |
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| 18 | 18 | | 1.18 (6) one member appointed by the Minnesota Consortium of Community Developers; |
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| 19 | 19 | | 1.19 (7) one representative appointed by the Insurance Federation of Minnesota; |
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| 20 | 20 | | 1.20 (8) one representative appointed by Big I Minnesota; |
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| 21 | 21 | | 1Section 1. |
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| 22 | 22 | | REVISOR RSI/ES 25-0396102/25/25 |
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| 23 | 23 | | State of Minnesota |
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| 24 | 24 | | This Document can be made available |
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| 25 | 25 | | in alternative formats upon request |
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| 26 | 26 | | HOUSE OF REPRESENTATIVES |
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| 27 | 27 | | H. F. No. 2228 |
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| 28 | 28 | | NINETY-FOURTH SESSION |
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| 29 | 29 | | Authored by Elkins, Her and Kotyza-Witthuhn03/12/2025 |
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| 30 | 30 | | The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (9) one representative appointed by the Minnesota Realtors; |
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| 31 | 31 | | 2.2 (10) one member appointed by the Minnesota Community Development Financial |
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| 32 | 32 | | 2.3Institutions Coalition; |
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| 33 | 33 | | 2.4 (11) one member appointed by the Minnesota Homeownership Center; |
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| 34 | 34 | | 2.5 (12) one member appointed by the Housing Justice Center; and |
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| 35 | 35 | | 2.6 (13) one member with climate science expertise. |
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| 36 | 36 | | 2.7 (b) The appointing authorities must make the appointments by July 15, 2025. |
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| 37 | 37 | | 2.8 Subd. 3.Duties.(a) The task force must identify recommendations to strengthen and |
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| 38 | 38 | | 2.9stabilize the homeowners and commercial property insurance industry. |
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| 39 | 39 | | 2.10 (b) The task force must consult with members from Minnesota Housing, the Department |
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| 40 | 40 | | 2.11of Employment and Economic Development, and key stakeholders. |
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| 41 | 41 | | 2.12 (c) The task force must review: |
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| 42 | 42 | | 2.13 (1) risk mitigation methodologies; |
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| 43 | 43 | | 2.14 (2) liability laws impacting insurance costs; |
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| 44 | 44 | | 2.15 (3) minimum notice for coverage changes, including enforcement and oversight; |
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| 45 | 45 | | 2.16 (4) public reporting of aggregated data relating to insurance plan costs and coverage; |
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| 46 | 46 | | 2.17 (5) the reinsurance market for homeowners and commercial property insurance; |
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| 47 | 47 | | 2.18 (6) the current state-supported insurance program and the potential to expand the program |
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| 48 | 48 | | 2.19to include a catastrophic reinsurance fund and a self-insured pool; |
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| 49 | 49 | | 2.20 (7) factors that increase claim costs, including but not limited to post-loss contractors, |
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| 50 | 50 | | 2.21fraudulent claims, climate, inflation, and discontinued building materials; and |
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| 51 | 51 | | 2.22 (8) other areas that would strengthen and stabilize the homeowners and commercial |
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| 52 | 52 | | 2.23property insurance industry. |
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| 53 | 53 | | 2.24 Subd. 4.Meetings.(a) The Legislative Coordinating Commission must ensure the first |
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| 54 | 54 | | 2.25meeting of the task force convenes no later than August 15, 2025, and must provide accessible |
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| 55 | 55 | | 2.26physical or virtual meeting space as necessary for the task force to conduct work. |
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| 56 | 56 | | 2.27 (b) At the first meeting, the task force must elect a chair or cochairs by a majority vote |
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| 57 | 57 | | 2.28of those members present and may elect a vice-chair as necessary. |
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| 58 | 58 | | 2.29 (c) The task force must establish a schedule for meetings and must meet as necessary |
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| 59 | 59 | | 2.30to accomplish the duties under subdivision 3. |
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| 60 | 60 | | 2Section 1. |
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| 61 | 61 | | REVISOR RSI/ES 25-0396102/25/25 3.1 (d) The task force is subject to Minnesota Statutes, chapter 13D. |
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| 62 | 62 | | 3.2 Subd. 5.Report required.(a) The task force must submit a report to the commissioners |
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| 63 | 63 | | 3.3of the Department of Commerce, Minnesota Housing, and the Department of Employment |
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| 64 | 64 | | 3.4and Economic Development, and the chairs and ranking minority members of the legislative |
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| 65 | 65 | | 3.5committees having jurisdiction over the agencies listed in this paragraph by February 15, |
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| 66 | 66 | | 3.62026. |
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| 67 | 67 | | 3.7 (b) The report must: |
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| 68 | 68 | | 3.8 (1) summarize the activities of the task force; |
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| 69 | 69 | | 3.9 (2) provide findings and recommendations adopted by the task force; |
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| 70 | 70 | | 3.10 (3) list recommended administrative changes to the relevant agencies; |
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| 71 | 71 | | 3.11 (4) include draft legislation to implement nonadministrative recommendations; and |
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| 72 | 72 | | 3.12 (5) include other information the task force believes is necessary to report. |
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| 73 | 73 | | 3.13 Subd. 6.Expiration.The task force expires upon submission of the final |
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| 74 | 74 | | 3.14recommendations required under subdivision 5. |
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| 75 | 75 | | 3.15 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 76 | 76 | | 3.16 Sec. 2. APPROPRIATION; TASK FORCE ON HOMEOWNERS AND |
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| 77 | 77 | | 3.17COMMERCIAL PROPERTY INSURANCE. |
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| 78 | 78 | | 3.18 $200,000 in fiscal year 2025 is appropriated from the general fund to the Legislative |
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| 79 | 79 | | 3.19Coordinating Commission to facilitate and administrate the costs of the task force on |
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| 80 | 80 | | 3.20homeowners and commercial property insurance. This is a onetime appropriation and is |
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| 81 | 81 | | 3.21available until June 30, 2026. |
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| 82 | 82 | | 3.22 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 83 | 83 | | 3Sec. 2. |
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| 84 | 84 | | REVISOR RSI/ES 25-0396102/25/25 |
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