1.1 A bill for an act
1.2 relating to commerce; establishing a budget for the Department of Commerce;
1.3 adding, modifying, and eliminating various provisions governing insurance,
1.4 financial institutions, commercial regulations and consumer protection, and
1.5 telecommunications; modifying cannabis provisions; modifying fees assessed by
1.6 the Department of Commerce; establishing a common interest community
1.7 ombudsperson and a common interest community register; classifying data; making
1.8 technical changes; appropriating money; amending Minnesota Statutes 2024,
1.9 sections 45.027, subdivisions 1, 2, by adding a subdivision; 45.24; 46A.04; 47.20,
1.10 subdivisions 2, 4a, 8; 47.77; 53B.61; 55.07, by adding a subdivision; 58B.02,
1.11 subdivision 8a; 58B.051; 60A.201, subdivision 2, by adding a subdivision; 60C.09,
1.12 subdivision 2; 60D.09, by adding a subdivision; 60D.15, subdivisions 4, 7, by
1.13 adding subdivisions; 60D.16, subdivision 2; 60D.17, subdivision 1; 60D.18,
1.14 subdivision 3; 60D.19, subdivision 4, by adding subdivisions; 60D.20, subdivision
1.15 1; 60D.217; 60D.22, subdivisions 1, 3, 6, by adding a subdivision; 60D.24,
1.16 subdivision 2; 60D.25; 62A.31, subdivisions 1r, 1w; 62A.65, subdivisions 1, 2,
1.17 by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision 1;
1.18 62D.221, by adding a subdivision; 62J.26, subdivisions 1, 2, 3, by adding
1.19 subdivisions; 62Q.73, subdivision 4; 65A.01, subdivision 3c; 72A.20, by adding
1.20 a subdivision; 80A.65, subdivision 2; 80A.66; 80E.12; 116.943, subdivisions 1,
1.21 5; 168.27, by adding a subdivision; 216B.40; 216B.62, by adding a subdivision;
1.22 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3; 325G.24, subdivision 2;
1.23 334.01, subdivision 2; 342.17; 342.37, by adding subdivisions; Laws 2023, chapter
1.24 63, article 9, section 5; proposing coding for new law in Minnesota Statutes,
1.25 chapters 45; 60D; 62A; 168A; 216B; 237; 239; 325F; 515B.
1.26BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.27 ARTICLE 1
1.28 COMMERCE FINANCE
1.29Section 1. APPROPRIATIONS.
1.30 The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.31and for the purposes specified in this article. The appropriations are from the general fund,
1.32or another named fund, and are available for the fiscal years indicated for each purpose.
1Article 1 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI
SENATE
STATE OF MINNESOTA
S.F. No. 2216NINETY-FOURTH SESSION
(SENATE AUTHORS: KLEIN)
OFFICIAL STATUSD-PGDATE
Introduction and first reading66003/06/2025
Referred to Commerce and Consumer Protection
Comm report: To pass as amended and re-refer to Finance1871a04/10/2025 2.1The figures "2026" and "2027" used in this article mean that the appropriations listed under
2.2them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
2.3"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
2.4is fiscal years 2026 and 2027. If an appropriation in this act is enacted more than once in
2.5the 2025 legislative session or a special session, the appropriation must be given effect only
2.6once.
2.7 APPROPRIATIONS
2.8 Available for the Year
2.9 Ending June 30
20272.10 2026
2.11Sec. 2. DEPARTMENT OF COMMERCE
41,281,000$41,318,000$2.12Subdivision 1.Total Appropriation
2.13 Appropriations by Fund
20272.14 2026
38,588,00038,625,0002.15General
600,000600,000
2.16Workers'
2.17Compensation Fund
2,093,0002,093,0002.18Special Revenue
2.19The amounts that may be spent for each
2.20purpose are specified in the following
2.21subdivisions.
2,933,0002,933,0002.22Subd. 2.Financial Institutions
2.23(a) $400,000 each year is for a grant to Prepare
2.24and Prosper to develop, market, evaluate, and
2.25distribute a financial services inclusion
2.26program that (1) assists low-income and
2.27financially underserved populations to build
2.28savings and strengthen credit, and (2) provides
2.29services to assist low-income and financially
2.30underserved populations to become more
2.31financially stable and secure. Money
2.32remaining after the first year is available for
2.33the second year.
2.34(b) $254,000 each year is to administer
2.35Minnesota Statutes, chapter 58B.
2Article 1 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 3.1(c) $441,000 each year is for additional
3.2securities unit staffing.
12,133,00012,143,0003.3Subd. 3.Administrative Services
3.4(a) $353,000 each year is for system
3.5modernization and cybersecurity upgrades for
3.6the unclaimed property program.
3.7(b) $249,000 each year is for the senior safe
3.8fraud prevention program.
3.9(c) $500,000 each year is to create and
3.10maintain the Prescription Drug Affordability
3.11Board established under Minnesota Statutes,
3.12section 62J.87.
3.13(d) $12,000 each year is for the intermediate
3.14blends of gasoline and biofuels report under
3.15Minnesota Statutes, section 239.791,
3.16subdivision 8.
3.17(e) $657,000 the first year and $62,000 the
3.18second year are for the development,
3.19maintenance, and staff costs of the common
3.20interest community register under Minnesota
3.21Statutes, section 515B.5-101.
3.22(f) $348,000 each year is for the common
3.23interest community ombudsperson and related
3.24staff under Minnesota Statutes, section
3.2545.0137.
3.26The base for administrative services is
3.27$12,411,000 in each of fiscal years 2028 and
3.282029.
6,421,0006,421,0003.29Subd. 4.Enforcement
3.30(a) $225,000 each year is to create and
3.31maintain the Mental Health Parity and
3.32Substance Abuse Accountability Office under
3.33Minnesota Statutes, section 62Q.465.
3Article 1 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 4.1(b) $197,000 each year is to create and
4.2maintain a student loan advocate position
4.3under Minnesota Statutes, section 58B.011.
3,235,0003,235,0004.4Subd. 5.Telecommunications
4.5 Appropriations by Fund
1,142,0001,142,0004.6General
2,093,0002,093,0004.7Special Revenue
4.8$2,093,000 each year is from the
4.9telecommunications access Minnesota fund
4.10under Minnesota Statutes, section 237.52,
4.11subdivision 1, in the special revenue fund for
4.12the following transfers:
4.13(1) $1,620,000 each year is to the
4.14commissioner of human services to
4.15supplement the ongoing operational expenses
4.16of the Commission of Deaf, DeafBlind, and
4.17Hard-of-Hearing Minnesotans. This transfer
4.18is subject to Minnesota Statutes, section
4.1916A.281;
4.20(2) $290,000 each year is to the chief
4.21information officer to coordinate technology
4.22accessibility and usability;
4.23(3) $133,000 each year is to the Legislative
4.24Coordinating Commission for captioning
4.25legislative coverage. This transfer is subject
4.26to Minnesota Statutes, section 16A.281; and
4.27(4) $50,000 each year is to the Office of
4.28MN.IT Services for a consolidated access fund
4.29to provide grants or services to other state
4.30agencies related to accessibility of web-based
4.31services.
4Article 1 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 13,483,00013,689,0005.1Subd. 6.Insurance
5.2 Appropriations by Fund
12,883,00013,089,0005.3General
600,000600,000
5.4Workers'
5.5Compensation
5.6(a) $136,000 each year is to advance
5.7standardized health plan options.
5.8(b) $105,000 each year is to evaluate
5.9legislation for new mandated health benefits
5.10under Minnesota Statutes, section 62J.26.
5.11(c) $600,000 each year is from the workers'
5.12compensation fund.
5.13(d) $42,000 each year is to ensure health plan
5.14company compliance with Minnesota Statutes,
5.15section 62Q.47, paragraph (h).
5.16(e) $25,000 each year is to evaluate existing
5.17statutory health benefit mandates.
3,076,0002,897,0005.18Subd. 7.Weights and Measures Division
40,017,000$37,150,000$
5.19Sec. 3. OFFICE OF CANNABIS
5.20MANAGEMENT
5.21$15,000,000 each year is for cannabis industry
5.22community renewal grants under Minnesota
5.23Statutes, section 342.70. Of this amount, up
5.24to three percent may be used to pay for
5.25administrative expenses incurred by the Office
5.26of Cannabis Management.
5.27$1,000,000 each year is for transfer to the
5.28CanGrow revolving loan account established
5.29under Minnesota Statutes, section 342.73,
5.30subdivision 4. Of this amount, up to three
5.31percent may be used to pay for administrative
5.32expenses incurred by the Office of Cannabis
5.33Management.
5Article 1 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 6.1The base is $40,103,000 in each of fiscal years
6.22028 and 2029.
6.3 Sec. 4. Laws 2023, chapter 63, article 9, section 5, is amended to read:
17,953,000$21,614,000$
6.4Sec. 5. OFFICE OF CANNABIS
6.5MANAGEMENT
6.6The base for this appropriation is $35,587,000
6.7in fiscal year 2026 and $38,144,000 in fiscal
6.8year 2027.
6.9$1,000,000 the second year is for cannabis
6.10industry community renewal grants under
6.11Minnesota Statutes, section 342.70. Of these
6.12amounts, up to three percent may be used for
6.13administrative expenses. The base for this
6.14appropriation is $15,000,000 in fiscal year
6.152026 and each fiscal year thereafter.
6.16$1,000,000 the second year is for cannabis
6.17industry community renewal grants under
6.18Minnesota Statutes, section 342.70.
6.19Notwithstanding Minnesota Statutes, section
6.2016A.28, this appropriation is available until
6.21June 30, 2026. Of this amount, up to three
6.22percent may be used to pay for administrative
6.23expenses incurred by the Office of Cannabis
6.24Management. The base for this appropriation
6.25is $15,000,000 in fiscal year 2026 and each
6.26fiscal year thereafter.
6.27$1,000,000 each year is for transfer to the
6.28CanGrow revolving loan account established
6.29under Minnesota Statutes, section 342.73,
6.30subdivision 4. Of these amounts, up to three
6.31percent may be used for administrative
6.32expenses.
6.33 EFFECTIVE DATE.This section is effective the day following final enactment.
6Article 1 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 7.1 ARTICLE 2
7.2 FINANCIAL INSTITUTIONS POLICY
7.3 Section 1. Minnesota Statutes 2024, section 45.24, is amended to read:
7.4 45.24 LICENSE TECHNOLOGY FEES.
7.5 (a) The commissioner may establish and maintain an electronic licensing database system
7.6for license origination, renewal, and tracking the completion of continuing education
7.7requirements by individual licensees who have continuing education requirements, and
7.8other related purposes.
7.9 (b) The commissioner shall pay for the cost of operating and maintaining the electronic
7.10database system described in paragraph (a) through a technology surcharge imposed upon
7.11the fee for license origination and renewal, for individual licenses that require continuing
7.12education.
7.13 (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
7.14licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
7.15time of license origination and renewal.
7.16 (d) The Commerce Department technology account is hereby created as an account in
7.17the special revenue fund.
7.18 (e) The commissioner shall deposit the surcharge permitted under this section in the
7.19account created in paragraph (d), and funds in the account are appropriated to the
7.20commissioner in the amounts needed for purposes of this section. The commissioner of
7.21management and budget shall transfer an amount determined by the commissioner of
7.22commerce from the account to the statewide electronic licensing system account under
7.23section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
7.24of licenses subject to this section.
7.25 (f) The commissioner shall may temporarily reduce or suspend the surcharge as necessary
7.26if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
7.27June in any calendar year and shall must annually review the anticipated costs under
7.28paragraph (b) to determine the amount to increase or decrease the surcharge as necessary
7.29to keep the fund balance at an adequate level but not in excess of $2,000,000.
7Article 2 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 8.1 Sec. 2. Minnesota Statutes 2024, section 46A.04, is amended to read:
8.2 46A.04 EXCEPTIONS AND EXEMPTIONS.
8.3 (a) The requirements under section 46A.03, subdivisions 3, paragraph (b); 5, paragraph
8.4(a) (b); 9; and 10, do not apply to financial institutions that maintain customer information
8.5concerning fewer than 5,000 consumers.
8.6 (b) This chapter does not apply to credit unions or federally insured depository
8.7institutions.
8.8 Sec. 3. Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:
8.9 Subd. 2.Definitions.For the purposes of this section the terms defined in this subdivision
8.10have the meanings given them:
8.11 (1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
8.12whether or not retained by the mortgagee or lender:
8.13 (a) Any insurance premiums including but not limited to premiums for title insurance,
8.14fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
8.15excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
8.16 (b) Abstracting, title examination and search, and examination of public records.
8.17 (c) The preparation and recording of any or all documents required by law or custom
8.18for closing a conventional or cooperative apartment loan.
8.19 (d) Appraisal and survey of real property securing a conventional loan or real property
8.20owned by a cooperative apartment corporation of which a share or shares of stock or a
8.21membership certificate or certificates are to secure a cooperative apartment loan.
8.22 (e) A single service charge, which includes any consideration, not otherwise specified
8.23herein as an "actual closing cost" paid by the borrower and received and retained by the
8.24lender for or related to the acquisition, making, refinancing or modification of a conventional
8.25or cooperative apartment loan, and also includes any consideration received by the lender
8.26for making a borrower's interest rate commitment or for making a borrower's loan
8.27commitment, whether or not an actual loan follows the commitment. The term service charge
8.28does not include forward commitment fees. The service charge shall not exceed one percent
8.29of the original bona fide principal amount of the conventional or cooperative apartment
8.30loan, except that in the case of a construction loan, the service charge shall not exceed two
8.31percent of the original bona fide principal amount of the loan. That portion of the service
8.32charge imposed because the loan is a construction loan shall be itemized and a copy of the
8Article 2 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 9.1itemization furnished the borrower. A lender shall not collect from a borrower the additional
9.2one percent service charge permitted for a construction loan if it does not perform the service
9.3for which the charge is imposed or if third parties perform and charge the borrower for the
9.4service for which the lender has imposed the charge. A loan that meets the Federal Qualified
9.5Mortgage standards in Code of Federal Regulations, title 12, section 1026.43(e)(3), is exempt
9.6from the service charge limitations under this section.
9.7 (f) Charges and fees necessary for or related to the transfer of real or personal property
9.8securing a conventional or cooperative apartment loan or the closing of a conventional or
9.9cooperative apartment loan paid by the borrower and received by any party other than the
9.10lender.
9.11 (2) "Contract for deed" means an executory contract for the conveyance of real estate,
9.12the original principal amount of which is less than $300,000. A commitment for a contract
9.13for deed shall include an executed purchase agreement or earnest money contract wherein
9.14the seller agrees to finance any part or all of the purchase price by a contract for deed.
9.15 (3) "Conventional loan" means a loan or advance of credit, other than a
9.16 loan or advance of credit made by a credit union or made pursuant to section 334.011,
9.17to a noncorporate borrower in an original principal amount of less than or equal to the
9.18conforming loan limit established by the Federal Housing Finance Agency under the Housing
9.19and Recovery Act of 2018, Public Law 110-289, secured by a mortgage upon real property
9.20containing one or more residential units or upon which at the time the loan is made it is
9.21intended that one or more residential units are to be constructed, and which is not insured
9.22or guaranteed by the secretary of housing and urban development, by the administrator of
9.23veterans affairs, or by the administrator of the Farmers Home Administration, and which
9.24is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
9.25mortgage does not include contracts for deed or installment land contracts.
9.26 (4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
9.27or advance of credit made by a credit union or made pursuant to section 334.011, to a
9.28noncorporate borrower in an original principal amount of less than $100,000, secured by a
9.29security interest on a share or shares of stock or a membership certificate or certificates
9.30issued to a stockholder or member by a cooperative apartment corporation, which may be
9.31accompanied by an assignment by way of security of the borrower's interest in the proprietary
9.32lease or occupancy agreement in property issued by the cooperative apartment corporation
9.33and which is not insured or guaranteed by the secretary of housing and urban development,
9Article 2 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 10.1by the administrator of veterans affairs, or by the administrator of the Farmers Home
10.2Administration.
10.3 (5) "Cooperative apartment corporation" means a corporation or cooperative organized
10.4under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
10.5reason of their ownership of stock or membership certificates in the corporation or
10.6association, to occupy one or more residential units in a building owned or leased by the
10.7corporation or association.
10.8 (6) "Forward commitment fee" means a fee or other consideration paid to a lender for
10.9the purpose of securing a binding forward commitment by or through the lender to make
10.10conventional loans to two or more credit worthy purchasers, including future purchasers,
10.11of residential units, or a fee or other consideration paid to a lender for the purpose of securing
10.12a binding forward commitment by or through the lender to make conventional loans to two
10.13or more credit worthy purchasers, including future purchasers, of units to be created out of
10.14existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
10.15for the purpose of securing a binding forward commitment by or through the lender to make
10.16cooperative apartment loans to two or more credit worthy purchasers, including future
10.17purchasers, of a share or shares of stock or a membership certificate or certificates in a
10.18cooperative apartment corporation; provided, that the forward commitment rate of interest
10.19does not exceed the maximum lawful rate of interest effective as of the date the forward
10.20commitment is issued by the lender.
10.21 (7) "Borrower's interest rate commitment" means a binding commitment made by a
10.22lender to a borrower wherein the lender agrees that, if a conventional or cooperative
10.23apartment loan is made following issuance of and pursuant to the commitment, the
10.24conventional or cooperative apartment loan shall be made at a rate of interest not in excess
10.25of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
10.26to in the commitment is not in excess of the maximum lawful rate of interest effective as
10.27of the date the commitment is issued by the lender to the borrower.
10.28 (8) "Borrower's loan commitment" means a binding commitment made by a lender to a
10.29borrower wherein the lender agrees to make a conventional or cooperative apartment loan
10.30pursuant to the provisions, including the interest rate, of the commitment, provided that the
10.31commitment rate of interest does not exceed the maximum lawful rate of interest effective
10.32as of the date the commitment is issued and the commitment when issued and agreed to
10.33shall constitute a legally binding obligation on the part of the mortgagee or lender to make
10.34a conventional or cooperative apartment loan within a specified time period in the future at
10.35a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
10Article 2 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 11.1the commitment is issued by the lender to the borrower; provided that a lender who issues
11.2a borrower's loan commitment pursuant to the provisions of a forward commitment is
11.3authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
11.4maximum lawful rate of interest effective as of the date the forward commitment is issued
11.5by the lender.
11.6 (9) "Finance charge" means the total cost of a conventional or cooperative apartment
11.7loan including extensions or grant of credit regardless of the characterization of the same
11.8and includes interest, finders fees, and other charges levied by a lender directly or indirectly
11.9against the person obtaining the conventional or cooperative apartment loan or against a
11.10seller of real property securing a conventional loan or a seller of a share or shares of stock
11.11or a membership certificate or certificates in a cooperative apartment corporation securing
11.12a cooperative apartment loan, or any other party to the transaction except any actual closing
11.13costs and any forward commitment fee. The finance charges plus the actual closing costs
11.14and any forward commitment fee, charged by a lender shall include all charges made by a
11.15lender other than the principal of the conventional or cooperative apartment loan. The finance
11.16charge, with respect to wraparound mortgages, shall be computed based upon the face
11.17amount of the wraparound mortgage note, which face amount shall consist of the aggregate
11.18of those funds actually advanced by the wraparound lender and the total outstanding principal
11.19balances of the prior note or notes which have been made a part of the wraparound mortgage
11.20note.
11.21 (10) "Lender" means any person making a conventional or cooperative apartment loan,
11.22or any person arranging financing for a conventional or cooperative apartment loan. The
11.23term also includes the holder or assignee at any time of a conventional or cooperative
11.24apartment loan.
11.25 (11) "Loan yield" means the annual rate of return obtained by a lender over the term of
11.26a conventional or cooperative apartment loan and shall be computed as the annual percentage
11.27rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
11.28of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
11.29for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
11.30the rate of interest or loan yield shall be based upon the principal balance set forth in the
11.31wraparound note and mortgage and shall not include any interest differential or yield
11.32differential between the stated interest rate on the wraparound mortgage and the stated
11.33interest rate on the one or more prior mortgages included in the stated loan amount on a
11.34wraparound note and mortgage.
11Article 2 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 12.1 (12) "Person" means an individual, corporation, business trust, partnership or association
12.2or any other legal entity.
12.3 (13) "Residential unit" means any structure used principally for residential purposes or
12.4any portion thereof, and includes a unit in a common interest community, a nonowner
12.5occupied residence, and any other type of residence regardless of whether the unit is used
12.6as a principal residence, secondary residence, vacation residence, or residence of some other
12.7denomination.
12.8 (14) "Vendor" means any person or persons who agree to sell real estate and finance
12.9any part or all of the purchase price by a contract for deed. The term also includes the holder
12.10or assignee at any time of the vendor's interest in a contract for deed.
12.11Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
12.12 Subd. 8.Conventional loan provisions.(a) A lender making a conventional loan shall
12.13comply with the following:
12.14 (1) the promissory note and mortgage evidencing a conventional loan shall be printed
12.15in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
12.16typewritten numerals, or shall be legibly handwritten.;
12.17 (2) the mortgage evidencing a conventional loan shall contain a provision whereby the
12.18lender agrees to furnish the borrower with a conformed copy of the promissory note and
12.19mortgage at the time they are executed or within a reasonable time after recordation of the
12.20mortgage.; and
12.21 (3) the mortgage evidencing a conventional loan shall contain a provision whereby the
12.22lender, if it intends to foreclose, agrees to give the borrower written notice of any default
12.23under the terms or conditions of the promissory note or mortgage, by sending the notice by
12.24certified: (i) first-class mail to the address of the mortgaged property or such other a different
12.25address as the borrower may have designated designates in writing to the lender; or (ii)
12.26email or other electronic communication, if agreed to by the lender and the borrower in
12.27writing. The lender need not give the borrower the notice required by this paragraph clause
12.28if the default consists of the borrower selling the mortgaged property without the required
12.29consent of the lender.
12.30 (b) The mortgage shall further provide that the notice under paragraph (a), clause (3),
12.31shall contain the following provisions:
12.32 (a) (1) the nature of the default by the borrower;
12Article 2 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 13.1 (b) (2) the action required to cure the default;
13.2 (c) (3) a date, not less than 30 days from the date the notice is mailed by which the
13.3default must be cured;
13.4 (d) (4) that failure to cure the default on or before the date specified in the notice may
13.5result in acceleration of the sums secured by the mortgage and sale of the mortgaged
13.6premises;
13.7 (e) (5) that the borrower has the right to reinstate the mortgage after acceleration; and
13.8 (f) (6) that the borrower has the right to bring a court action to assert the nonexistence
13.9of a default or any other defense of the borrower to acceleration and sale.
13.10Sec. 5. Minnesota Statutes 2024, section 47.77, is amended to read:
13.11 47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
13.12 (a) No financial institution shall initiate a transfer of a deposit account to another deposit
13.13account bearing different identification information without sending at least 30 days' prior
13.14notice to at least one of the deposit account holders at the last known address on file with
13.15the financial institution. If the new account is subject to different terms, the financial
13.16institution must obtain the written consent of at least one of the deposit account holders
13.17before the new terms become effective.
13.18 (b) No financial institution shall initiate a closure of a deposit account without first
13.19sending at least one of the deposit account holders a notice of intent to close the deposit
13.20account. The notice must be sent to the deposit account holder's last known address on file
13.21with the financial institution at least 30 days before the financial institution closes the deposit
13.22account;, except that, if the financial institution has reasonable suspicion to believe that
13.23account is being used in connection with a check-related fraud or other crime or that, funds
13.24will not be available to pay items drawn on the account, or the deposit account holder has
13.25engaged in disruptive, hostile, or harassing behavior toward financial institution employees
13.26or customers, the notice may be sent the same day as the account is closed.
13.27 (c) As used in this section, the following terms have the meanings given them. "Deposit
13.28account" means a contract of deposit of funds between a depositor and a financial institution,
13.29and includes a checking account, savings account, certificate of deposit share account, and
13.30other like arrangement. "Financial institution" means any organization authorized to do
13.31business under state or federal laws relating to financial institutions, including, without
13.32limitation, banks and trust companies, savings banks, savings associations, industrial loan
13.33and thrift companies, and credit unions.
13Article 2 Sec. 5.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 14.1 Sec. 6. Minnesota Statutes 2024, section 53B.61, is amended to read:
14.2 53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.
14.3 (a) A licensee must maintain at all times permissible investments that have a market
14.4value computed in accordance with United States generally accepted accounting principles
14.5of not less than the aggregate amount of all of the licensee's outstanding money transmission
14.6obligations.
14.7 (b) Except for permissible investments enumerated in section 53B.62, paragraph (a)
14.8subdivision 1, clause (1), the commissioner may by administrative rule or order, with respect
14.9to any licensee, limit the extent to which a specific investment maintained by a licensee
14.10within a class of permissible investments may be considered a permissible investment, if
14.11the specific investment represents undue risk to customers not reflected in the market value
14.12of investments.
14.13 (c) Permissible investments, even if commingled with other assets of the licensee, are
14.14held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
14.15transmission obligations in the event of insolvency; the filing of a petition by or against the
14.16licensee under the United States Bankruptcy Code, United States Code, title 11, sections
14.17101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
14.18the filing of a petition by or against the licensee for receivership; the commencement of any
14.19other judicial or administrative proceeding for the licensee's dissolution or reorganization;
14.20or in the event of an action by a creditor against the licensee who is not a beneficiary of this
14.21statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
14.22are subject to attachment, levy of execution, or sequestration by order of any court, except
14.23for a beneficiary of the statutory trust.
14.24 (d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
14.25any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
14.26(4), the commissioner must notify the applicable regulator of each state in which the licensee
14.27is licensed to engage in money transmission, if any, of the establishment of the trust or the
14.28funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
14.29pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
14.30any other permissible investments held in trust for the benefit of the purchasers and holders
14.31of the licensee's outstanding money transmission obligations, are deemed held in trust for
14.32the benefit of the purchasers and holders of the licensee's outstanding money transmission
14.33obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
14.34permissible investments are required to be held in Minnesota and other states, as defined
14Article 2 Sec. 6.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 15.1by a substantially similar statute in the other state. Any statutory trust established under this
15.2section terminates upon extinguishment of all of the licensee's outstanding money
15.3transmission obligations.
15.4 (e) The commissioner may by rule or by order allow other types of investments that the
15.5commissioner determines are of sufficient liquidity and quality to be a permissible
15.6investment. The commissioner is authorized to participate in efforts with other state regulators
15.7to determine that other types of investments are of sufficient liquidity and quality to be a
15.8permissible investment.
15.9 Sec. 7. Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
15.10read:
15.11 Subd. 3.Safe deposit lease; automatic renewal.A safe deposit lease may renew
15.12automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
15.13at any time in writing or in any other manner described in the lease.
15.14Sec. 8. Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:
15.15 Subd. 8a.Lender."Lender" means an entity engaged in the business of securing, making,
15.16or extending student loans. Lender does not include, to the extent that state regulation is
15.17preempted by federal law:
15.18 (1) a bank, savings banks, savings and loan association, or credit union;
15.19 (2) a wholly owned subsidiary of a bank or credit union;
15.20 (3) an operating subsidiary where each owner is wholly owned by the same bank or
15.21credit union;
15.22 (4) the United States government, through Title IV of the Higher Education Act of 1965,
15.23as amended, and administered by the United States Department of Education;
15.24 (5) an agency, instrumentality, or political subdivision of Minnesota;
15.25 (6) a regulated lender organized under chapter 56, except that a regulated lender must
15.26file the annual report required for lenders under section 58B.03, subdivision 11 10; or
15.27 (7) a person who is not in the business of making student loans and who makes no more
15.28than three student loans, with the person's own funds, during any 12-month period.
15Article 2 Sec. 8.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 16.1 Sec. 9. Minnesota Statutes 2024, section 58B.051, is amended to read:
16.2 58B.051 REGISTRATION FOR LENDERS.
16.3 (a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
16.4before providing services in Minnesota. A lender must not offer or make a student loan to
16.5a resident of Minnesota without first registering with the commissioner as provided in this
16.6section.
16.7 (b) A registration application must include:
16.8 (1) the lender's name;
16.9 (2) the lender's address;
16.10 (3) the names of all officers, directors, owners, or other persons in control of an applicant,
16.11as defined in section 58B.02, subdivision 6; and
16.12 (4) any other information the commissioner requires by rule.
16.13 (c) Registration issued or renewed expires December 31 of each year. A lender must
16.14renew the lender's registration on an annual basis.
16.15 (d) The commissioner may adopt and enforce:
16.16 (1) registration procedures for lenders, which may include using the Nationwide
16.17Multistate Licensing System and Registry;
16.18 (2) nonrefundable registration fees for lenders, which may include fees for using the
16.19Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;
16.20 (3) procedures and nonrefundable fees to renew a lender's registration, which may include
16.21fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be
16.22paid directly by the lender; and
16.23 (4) alternate registration procedures and nonrefundable fees for postsecondary education
16.24institutions that offer student loans.
16.25Sec. 10. Minnesota Statutes 2024, section 60C.09, subdivision 2, is amended to read:
16.26 Subd. 2.Further definition.In addition to subdivision 1, a covered claim does not
16.27include:
16.28 (1) claims by an affiliate of the insurer;
16.29 (2) claims due a reinsurer, insurer, insurance pool, or underwriting association, as
16.30subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise.
16Article 2 Sec. 10.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 17.1This clause does not prevent a person from presenting the excluded claim to the insolvent
17.2insurer or its liquidator, but the claims shall not be asserted against another person, including
17.3the person to whom the benefits were paid or the insured of the insolvent insurer, except to
17.4the extent that the claim is outside the coverage of the policy issued by the insolvent insurer;
17.5and
17.6 (3) any claims, resulting from insolvencies which occur after July 31, 1996, by an insured
17.7whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which
17.8the insurer becomes an insolvent insurer; provided that an insured's net worth on that date
17.9shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries
17.10and affiliates as calculated on a consolidated basis. The association may request financial
17.11information from an insured to determine the insured's net worth under this clause. If an
17.12insured fails to provide the requested financial information within 60 days of the date the
17.13association submits a request, the insured's net worth is deemed to exceed $25,000,000 for
17.14purposes of the association's evaluation of the claim under section 60C.10. A request by
17.15the association to an insured seeking financial information under this clause must inform
17.16the insured of the consequences of failing to provide the requested information;
17.17 (4) any claims under a policy written by an insolvent insurer with a deductible or
17.18self-insured retention of $300,000 or more, nor that portion of a claim that is within an
17.19insured's deductible or self-insured retention; and
17.20 (5) claims that are a fine, penalty, interest, or punitive or exemplary damages.
17.21Sec. 11. Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:
17.22 Subd. 4.Contract.Pursuant to a request for proposal, the commissioner of administration,
17.23in consultation with the commissioners of health and commerce, shall must contract with
17.24at least three organizations more than one organization or business entities entity to provide
17.25independent external reviews of all adverse determinations submitted for external review.
17.26The contract shall must ensure that the fees for services rendered in connection with the
17.27reviews are reasonable.
17.28Sec. 12. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:
17.29 Subd. 2.Registration application and renewal filing fee.Every applicant for an initial
17.30or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in
17.31the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an
17.32investment adviser representative. When an application is denied or withdrawn, the filing
17.33fee shall be retained. A registered agent who has terminated employment with one
17Article 2 Sec. 12.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 18.1broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
18.2fee of $25 $60.
18.3 Sec. 13. Minnesota Statutes 2024, section 80A.66, is amended to read:
18.4 80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
18.5 (a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
18.6of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
18.7(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
18.8minimum financial requirements for broker-dealers registered or required to be registered
18.9under this chapter and investment advisers registered or required to be registered under this
18.10chapter.
18.11 (b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
18.12(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
18.13U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
18.14chapter and an investment adviser registered or required to be registered under this chapter
18.15shall file such financial reports as are required by a rule adopted or order issued under this
18.16chapter. If the information contained in a record filed under this subsection is or becomes
18.17inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
18.18amendment.
18.19 (c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
18.20(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
18.21U.S.C. Section 80b-22):
18.22 (1) a broker-dealer registered or required to be registered under this chapter and an
18.23investment adviser registered or required to be registered under this chapter shall make and
18.24maintain the accounts, correspondence, memoranda, papers, books, and other records
18.25required by rule adopted or order issued under this chapter;
18.26 (2) broker-dealer records required to be maintained under paragraph (1) may be
18.27maintained in any form of data storage acceptable under Section 17(a) of the Securities
18.28Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
18.29administrator; and
18.30 (3) investment adviser records required to be maintained under paragraph (d)(1) may
18.31be maintained in any form of data storage required by rule adopted or order issued under
18.32this chapter.
18.33 (d) Records and reports of private funds.
18Article 2 Sec. 13.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 19.1 (1) In general. An investment adviser to a private fund shall maintain such records of,
19.2and file with the administrator such reports and amendments thereto, that an exempt reporting
19.3adviser is required to file with the Securities and Exchange Commission pursuant to SEC
19.4Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
19.5 (2) Treatment of records. The records and reports of any private fund to which an
19.6investment adviser provides investment advice shall be deemed to be the records and reports
19.7of the investment adviser.
19.8 (3) Required information. The records and reports required to be maintained by an
19.9investment adviser, which are subject to inspection by a representative of the administrator
19.10at any time, shall include for each private fund advised by the investment adviser, a
19.11description of:
19.12 (A) the amount of assets under management;
19.13 (B) the use of leverage, including off-balance-sheet leverage, as to the assets under
19.14management;
19.15 (C) counterparty credit risk exposure;
19.16 (D) trading and investment positions;
19.17 (E) valuation policies and practices of the fund;
19.18 (F) types of assets held;
19.19 (G) side arrangements or side letters, whereby certain investors in a fund obtain more
19.20favorable rights or entitlements than other investors;
19.21 (H) trading practices; and
19.22 (I) such other information as the administrator determines is necessary and appropriate
19.23in the public interest and for the protection of investors, which may include the establishment
19.24of different reporting requirements for different classes of fund advisers, based on the type
19.25or size of the private fund being advised.
19.26 (4) Filing of records. A rule or order under this chapter may require each investment
19.27adviser to a private fund to file reports containing such information as the administrator
19.28deems necessary and appropriate in the public interest and for the protection of investors.
19.29 (e) Audits or inspections. The records of a broker-dealer registered or required to be
19.30registered under this chapter and of an investment adviser registered or required to be
19.31registered under this chapter, including the records of a private fund described in paragraph
19.32(d) and the records of investment advisers to private funds, are subject to such reasonable
19Article 2 Sec. 13.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 20.1periodic, special, or other audits or inspections by a representative of the administrator,
20.2within or without this state, as the administrator considers necessary or appropriate in the
20.3public interest and for the protection of investors. An audit or inspection may be made at
20.4any time and without prior notice. The administrator may copy, and remove for audit or
20.5inspection copies of, all records the administrator reasonably considers necessary or
20.6appropriate to conduct the audit or inspection. The administrator may assess a reasonable
20.7charge for conducting an audit or inspection under this subsection.
20.8 (f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
20.9of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
20.10Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
20.11under this chapter may require a broker-dealer or investment adviser that has custody of or
20.12discretionary authority over funds or securities of a customer or client to obtain insurance
20.13or post a bond or other satisfactory form of security in an amount of at least $25,000, but
20.14not to exceed $100,000. The administrator may determine the requirements of the insurance,
20.15bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
20.16of security may not be required of a broker-dealer registered under this chapter whose net
20.17capital exceeds, or of an investment adviser registered under this chapter whose minimum
20.18financial requirements exceed, the amounts required by rule or order under this chapter.
20.19The insurance, bond, or other satisfactory form of security must permit an action by a person
20.20to enforce any liability on the insurance, bond, or other satisfactory form of security if
20.21instituted within the time limitations in section 80A.76(j)(2).
20.22 (g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
20.23of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
20.24(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
20.25customer except under the supervision of a broker-dealer and an investment adviser
20.26representative may not have custody of funds or securities of a client except under the
20.27supervision of an investment adviser or a federal covered investment adviser. A rule adopted
20.28or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
20.29regarding custody of funds or securities of a customer and on an investment adviser regarding
20.30custody of securities or funds of a client.
20.31 (h) Investment adviser brochure rule. With respect to an investment adviser registered
20.32or required to be registered under this chapter, a rule adopted or order issued under this
20.33chapter may require that information or other record be furnished or disseminated to clients
20.34or prospective clients in this state as necessary or appropriate in the public interest and for
20.35the protection of investors and advisory clients.
20Article 2 Sec. 13.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 21.1 (i) Continuing education. A rule adopted or order issued under this chapter may require
21.2an individual registered under section 80A.57 or 80A.58 to participate in a continuing
21.3education program approved by the Securities and Exchange Commission and administered
21.4by a self-regulatory organization, the North American Securities Administrators Association,
21.5or the commissioner.
21.6 Sec. 14. APPLICATION OF MINNESOTA STATUTES, SECTION 65A.3025.
21.7 Minnesota Statutes, section 65A.3025, applies to policies issued or renewed on or after
21.8August 1, 2024. Minnesota Statutes, section 65A.3025, does not apply to policies issued or
21.9renewed prior to that date.
21.10 EFFECTIVE DATE.This section is effective retroactively from August 1, 2024.
21.11Sec. 15. CERTAIN COMPLIANCE OPTIONAL.
21.12 A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
21.13with respect to conventional loan mortgage documents dated between August 1, 2024, and
21.14July 31, 2025.
21.15 EFFECTIVE DATE.This section is effective retroactively from July 31, 2024.
21.16 ARTICLE 3
21.17 HEALTH INSURANCE
21.18Section 1. Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:
21.19 Subd. 1r.Community rate.(a) Each health maintenance organization, health service
21.20plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
21.21shall establish a separate community rate for that coverage. Beginning January 1, 1993, no
21.22Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
21.23except at the community rate required by this subdivision. The same community rate must
21.24apply to newly issued coverage and to renewal coverage.
21.25 (b) For coverage that supplements Medicare and for the Part A rate calculation for plans
21.26governed by section 1833 of the federal Social Security Act, United States Code, title 42,
21.27section 1395, et seq., the community rate may take into account only the following factors:
21.28 (1) actuarially valid differences in benefit designs or provider networks;
21.29 (2) geographic variations in rates if preapproved by the commissioner of commerce;
21.30and
21Article 3 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 22.1 (3) premium reductions in recognition of healthy lifestyle behaviors, including but not
22.2limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
22.3and must relate only to those healthy lifestyle behaviors that have a proven positive impact
22.4on health. Factors used by the health carrier making this premium reduction must be filed
22.5with and approved by the commissioner of commerce.; and
22.6 (4) premium increases in recognition of late enrollment or reenrollment.
22.7 (c) The premium increase permitted under paragraph (b), clause (4), must not exceed
22.8ten percent for each late enrollment or reenrollment. The increase must only be applied as
22.9a flat percentage of premium for an individual who: (1) enrolls in a Medicare supplement
22.10policy outside of the individual's initial enrollment period in Medicare Part B; and (2) is
22.11not eligible for a guaranteed issue period under subdivision 1u. Each premium increase
22.12permitted under paragraph (b), clause (4), may be applied for more than one plan year,
22.13including to renewals and reenrollments.
22.14 (d) For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey,
22.15Scott, or Washington County, a health plan may, at the option of the health carrier, phase
22.16in compliance under the following timetable:
22.17 (i) (1) a premium adjustment as of March 1, 1993, that consists of one-half of the
22.18difference between the community rate that would be applicable to the person as of March
22.191, 1993, and the premium rate that would be applicable to the person as of March 1, 1993,
22.20under the rate schedule permitted on December 31, 1992. A health plan may, at the option
22.21of the health carrier, implement the entire premium difference described in this clause for
22.22any person as of March 1, 1993, if the premium difference would be 15 percent or less of
22.23the premium rate that would be applicable to the person as of March 1, 1993, under the rate
22.24schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
22.25of whether the premium difference causes premiums to rise or to fall. The premium difference
22.26described in this clause is in addition to any premium adjustment attributable to medical
22.27cost inflation or any other lawful factor and is intended to describe only the premium
22.28difference attributable to the transition to the community rate; and
22.29 (ii) (2) with respect to any person whose premium adjustment was constrained under
22.30clause (i) (1), a premium adjustment as of January 1, 1994, that consists of the remaining
22.31one-half of the premium difference attributable to the transition to the community rate, as
22.32described in clause (i) (1).
22.33 (e) A health plan that initially follows the phase-in timetable may at any subsequent
22.34time comply on a more rapid timetable. A health plan that is in full compliance as of January
22Article 3 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 23.11, 1993, may not use the phase-in timetable and must remain in full compliance. Health
23.2plans that follow the phase-in timetable must charge the same premium rate for newly issued
23.3coverage that they charge for renewal coverage. A health plan whose premiums are
23.4constrained by paragraph (d), clause (i) (1), may take the constraint into account in
23.5establishing its community rate.
23.6 (f) From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
23.7option, charge the community rate under this paragraph or may instead charge premiums
23.8permitted as of December 31, 1992.
23.9 Sec. 2. Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:
23.10 Subd. 1w.Open enrollment.A medicare supplement policy or certificate must not be
23.11sold or issued to an eligible individual outside of the time periods described in subdivision
23.12subdivisions 1h and 1u.
23.13Sec. 3. [62A.481] LIMITED LONG-TERM CARE INSURANCE.
23.14 Subdivision 1.Short title.This section may be known and cited as the "Limited
23.15Long-Term Care Insurance Act."
23.16 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
23.17meanings given.
23.18 (b) "Applicant" means:
23.19 (1) in the case of an individual limited long-term care insurance policy, the person who
23.20seeks to contract for benefits; or
23.21 (2) in the case of a group limited long-term care insurance policy, the proposed certificate
23.22holder.
23.23 (c) "Certificate" means a certificate issued under a group limited long-term care insurance
23.24policy that has been delivered or issued for delivery in Minnesota.
23.25 (d) "Commissioner" means the commissioner of commerce.
23.26 (e) "Elimination period" means the length of time between meeting the eligibility for
23.27benefit payment and receiving benefit payments from an insurer.
23.28 (f) "Group limited long-term care insurance" means a limited long-term care insurance
23.29policy that is delivered or issued for delivery in Minnesota and issued to:
23Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 24.1 (1) one or more employers or labor organizations, a trust or the trustees of a fund
24.2established by one or more employers, labor organizations, or a combination of employers
24.3and labor organizations for: (i) employees, former employees, or a combination of employees
24.4or former employees; or (ii) members, former members, or a combination of members or
24.5former members of the labor organizations;
24.6 (2) a professional, trade, or occupational association for the association's members,
24.7former members, retired members, or a combination of members, former members, or retired
24.8members, if the association:
24.9 (i) is composed of individuals, all of whom are or were actively engaged in the same
24.10profession, trade, or occupation; and
24.11 (ii) has been maintained in good faith for purposes other than obtaining insurance;
24.12 (3) an association, a trust, or the trustees of a fund established, created, or maintained
24.13for the benefit of members of one or more associations. Prior to advertising, marketing, or
24.14offering the policy within Minnesota, the association or associations, or the insurer of the
24.15association or associations, must file evidence with the commissioner that the association
24.16or associations have at the outset:
24.17 (i) a minimum of 100 persons;
24.18 (ii) been organized and maintained in good faith for purposes other than obtaining
24.19insurance;
24.20 (iii) been in active existence for at least one year; and
24.21 (iv) a constitution and bylaws that provide:
24.22 (A) the association or associations hold regular meetings not less than annually to further
24.23purposes of the members;
24.24 (B) except for credit unions, the association or associations collect dues or solicit
24.25contributions from members; and
24.26 (C) the members have voting privileges and representation on the governing board and
24.27committees.
24.28Thirty days after the filing, the association or associations are deemed to satisfy the
24.29organizational requirements unless the commissioner makes a finding that the association
24.30or associations do not satisfy the organizational requirements; or
24.31 (4) a group other than a group described in clauses (1) to (3), subject to the commissioner
24.32finding that:
24Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 25.1 (i) issuing the policy is not contrary to the public interest;
25.2 (ii) issuing the policy results in acquisition or administrative economies; and
25.3 (iii) the policy's benefits are reasonable in relation to the premiums charged.
25.4 (g) "Limited long-term care insurance" means an insurance policy or rider:
25.5 (1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
25.6or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
25.7organization; or (vi) a similar organization, to the extent the organization is authorized to
25.8issue life or health insurance;
25.9 (2) advertised, marketed, offered, or designed to provide coverage for less than 12
25.10consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
25.11or other basis; and
25.12 (3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
25.13rehabilitative, maintenance, or personal care service provided in a setting other than a
25.14hospital's acute care unit.
25.15Limited long-term care insurance includes a policy or rider that provides for payment of
25.16benefits based upon cognitive impairment or the loss of functional capacity. Limited
25.17long-term care insurance does not include an insurance policy that is offered primarily to
25.18provide basic Medicare supplement coverage, basic hospital expense coverage, basic
25.19medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
25.20expense coverage, disability income or related asset-protection coverage, accident-only
25.21coverage, specified disease or specified accident coverage, or limited benefit health coverage.
25.22 (h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
25.23delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
25.24health, hospital, or medical service corporation; prepaid health plan; health maintenance
25.25organization; or any similar organization.
25.26 (i) "Waiting period" means the time an insured individual must wait before some or all
25.27of the insured individual's coverage becomes effective.
25.28 Subd. 3.Scope.(a) This section applies to policies delivered or issued for delivery in
25.29Minnesota on or after January 1, 2026. This section does not supersede an obligation that
25.30an entity subject to this section has to comply with other applicable insurance laws to the
25.31extent the other insurance laws do not conflict with this section, except that laws and
25.32regulations designed and intended to apply to Medicare supplement insurance policies must
25.33not be applied to limited long-term care insurance.
25Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 26.1 (b) Notwithstanding any other provision of this section, a product, policy, certificate, or
26.2rider advertised, marketed, or offered as limited long-term care insurance is subject to this
26.3section.
26.4 Subd. 4.Group limited long-term care insurance; extra-territorial jurisdiction.Group
26.5limited long-term care insurance coverage must not be offered to a Minnesota resident under
26.6a group policy issued in another state to a group described in subdivision 2, paragraph (f),
26.7clause (4), unless Minnesota or another state having statutory and regulatory limited
26.8long-term care insurance requirements substantially similar to those adopted in Minnesota
26.9makes a determination that the statutory and regulatory limited long-term care insurance
26.10requirements have been met.
26.11 Subd. 5.Limited long-term care insurance; disclosure and performance
26.12standards.(a) A limited long-term care insurance policy must not:
26.13 (1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
26.14certificate holder's age, gender, or deterioration of mental or physical health;
26.15 (2) contain a provision that establishes a new waiting period in the event existing coverage
26.16is converted to or replaced by a new or other form of coverage within the same company,
26.17except with respect to an increase in benefits voluntarily selected by the insured individual
26.18or group policyholder; or
26.19 (3) provide coverage for only skilled nursing care or provide significantly more coverage
26.20for skilled nursing care in a facility than coverage provided for lower levels of care.
26.21 (b) A limited long-term care insurance policy or certificate issued to a group identified
26.22in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
26.23for preexisting condition that is more restrictive than or excludes a condition for which
26.24medical advice or treatment was recommended by or received from a health care services
26.25provider within the six months preceding the date an insured individual's coverage is
26.26effective; and (2) excluding coverage for a loss or confinement that is the result of a
26.27preexisting condition unless the loss or confinement begins within six months of the date
26.28an insured individual's coverage is effective. The commissioner may extend the limitation
26.29periods established in clauses (1) and (2) with respect to specific age group categories in
26.30specific policy forms upon a finding that the extension is in the public interest. The definition
26.31of preexisting condition required under clause (1) does not prohibit an insurer from using
26.32an application form designed to elicit the complete health history of an applicant and, on
26.33the basis of the applicant's answers on the application, from underwriting in accordance
26.34with that insurer's established underwriting standards. Unless otherwise provided in the
26Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 27.1policy or certificate, an insurer is not required to cover a preexisting condition, regardless
27.2of whether the preexisting condition is disclosed on the application, until the waiting period
27.3under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
27.4from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
27.5or benefits for specifically named or described preexisting diseases or physical conditions
27.6beyond the waiting period established in clause (2).
27.7 (c) A limited long-term care insurance policy must not be delivered or issued for delivery
27.8in Minnesota if the policy conditions eligibility: (1) for any benefits, on a prior hospitalization
27.9requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
27.10higher level of institutional care; or (3) for any benefits other than waiver of premium,
27.11post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
27.12requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
27.13from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
27.14of skilled care services.
27.15 (d) A limited long-term care insurance applicant has the right to: (1) return the policy,
27.16certificate, or rider to the company or the company's agent or insurance producer within 30
27.17days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
27.18if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
27.19policy, certificate, or rider for any reason.
27.20 (e) A limited long-term care insurance policy, certificate, or rider must have a notice
27.21prominently printed on the first page or attached to the policy, certificate, or rider that
27.22includes specific instructions for a limited long-term care insurance applicant to return a
27.23policy, certificate, or rider under paragraph (d). The following statement or a substantially
27.24similar statement must be included with the instructions:
27.25 "You have 30 days from the date you receive this policy, certificate, or rider to review
27.26and return it to the company if you decide not to keep it. You do not have to tell the company
27.27why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
27.28return it to the company at the company's administrative office, or you may return it to the
27.29agent or insurance producer that you bought it from. You must return the policy, certificate,
27.30or rider within 30 days of the date you first received it. The company must refund the full
27.31amount of any premium paid within 30 days of the date the company receives the returned
27.32policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
27.33A returned policy, certificate, or rider is void, as if it never was issued."
27Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 28.1This paragraph does not apply to certificates issued pursuant to a policy issued to a group
28.2defined in subdivision 2, paragraph (f), clause (1).
28.3 (f) A coverage outline must be delivered to a prospective applicant for limited long-term
28.4care insurance at the time an initial solicitation is made, using a means that prominently
28.5directs the recipient's attention to the coverage outline and the coverage outline's purpose.
28.6The commissioner must prescribe: (1) a standard format, including style, arrangement, and
28.7overall appearance; and (2) the content that must be contained on a coverage outline. With
28.8respect to an agent solicitation, the agent must deliver the coverage outline before presenting
28.9an application or enrollment form. With respect to a direct response solicitation, the coverage
28.10outline must be provided in conjunction with an application or enrollment form. Delivery
28.11of a coverage outline is not required for a policy issued to a group defined in subdivision
28.122, paragraph (f), clause (1), if the information described in paragraph (g) is contained in
28.13other materials relating to enrollment. A copy of the other materials must be made available
28.14to the commissioner upon request.
28.15 (g) The coverage outline provided under paragraph (f) must include:
28.16 (1) a description of the principal benefits and coverage provided in the policy;
28.17 (2) a description of the eligibility triggers for benefits and how the eligibility triggers
28.18are met;
28.19 (3) a statement identifying the principal exclusions, reductions, and limitations contained
28.20in the policy;
28.21 (4) a statement describing the terms under which the policy, certificate, or both may be
28.22continued in force or discontinued, including any reservation in the policy of a right to
28.23change premium. A continuation or conversion provision for group coverage must be
28.24specifically described;
28.25 (5) a statement indicating that coverage outline is a summary only and not an insurance
28.26contract, and that the policy or group master policy contains the governing contractual
28.27provisions;
28.28 (6) a description of the terms under which the policy or certificate may be returned and
28.29premium refunded;
28.30 (7) a brief description of the relationship between cost of care and benefits; and
28.31 (8) a statement that discloses to the policyholder or certificate holder that the policy is
28.32not long-term care insurance.
28Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 29.1 (h) A certificate issued pursuant to a group limited long-term care insurance policy that
29.2is delivered or issued for delivery in Minnesota must include:
29.3 (1) a description of the principal benefits and coverage provided in the policy;
29.4 (2) a statement identifying the principal exclusions, reductions, and limitations contained
29.5in the policy; and
29.6 (3) a statement indicating that the group master policy determines governing contractual
29.7provisions.
29.8 (i) If an application for a limited long-term care insurance contract or certificate is
29.9approved, the issuer must deliver the contract or certificate of insurance to the applicant no
29.10later than 30 days after the date the application is approved.
29.11 (j) If a claim under a limited long-term care insurance contract is denied, the issuer must,
29.12within 60 days of the date the policyholder, certificate holder, or a representative of the
29.13policyholder or certificate holder submits a written request:
29.14 (1) provide a written explanation detailing the reasons for the denial; and
29.15 (2) make available all information directly related to the denial.
29.16 (k) A disclosure, statement, or written information and explanation required in this
29.17section, whether in print or electronic form, must accommodate the communication needs
29.18of individuals with disabilities and persons with limited English proficiency, as required by
29.19law.
29.20 Subd. 6.Incontestability period.(a) An insurer may (1) rescind a limited long-term
29.21care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
29.22insurance claim, for a policy or certificate that has been in force for less than six months
29.23upon a showing of misrepresentation that is material to the coverage acceptance.
29.24 (b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
29.25or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
29.26certificate that has been in force for at least six months but less than two years upon a
29.27showing of misrepresentation that is both material to the coverage acceptance and that
29.28pertains to the condition for which benefits are sought.
29.29 (c) A policy or certificate that has been in force for two years is not contestable upon
29.30the grounds of misrepresentation alone. A policy or certificate that has been in force for
29.31two years may be contested only upon a showing that the insured knowingly and intentionally
29.32misrepresented relevant facts relating to the insured individual's health.
29Article 3 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 30.1 (d) A limited long-term care insurance policy or certificate may be field issued if
30.2compensation to the field issuer is not based on the number of policies or certificates issued.
30.3For purposes of this paragraph, "field issued" means a policy or certificate issued by a
30.4producer or a third-party administrator (1) pursuant to the underwriting authority granted
30.5to the producer or third-party administrator by an insurer, and (2) using the insurer's
30.6underwriting guidelines.
30.7 (e) If an insurer paid benefits under the limited long-term care insurance policy or
30.8certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
30.9is rescinded.
30.10 Subd. 7.Nonforfeiture benefits.(a) A limited long-term care insurance policy may
30.11offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
30.12nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
30.13the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
30.14must provide a contingent benefit upon lapse that must be available for a specified period
30.15of time after a substantial increase in premium rates, as determined by the commissioner
30.16under paragraph (c).
30.17 (b) When a group limited long-term care insurance policy is issued, a nonforfeiture
30.18benefit offer must be made to the group policyholder. If the policy is issued as group limited
30.19long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
30.20other than a continuing care retirement community or other similar entity, a nonforfeiture
30.21benefit offer must be made to each proposed certificate holder.
30.22 Subd. 8.Severability.If any provision of this section or the application of the provision
30.23to any person or circumstance is held invalid for any reason, the remainder of the section
30.24and the application of the invalid provision to other persons or circumstances is not affected.
30.25 Subd. 9.Penalties.In addition to any other penalties provided by the laws of Minnesota,
30.26an insurer or producer that violates any requirement under this section or other law relating
30.27to the regulation of limited long-term care insurance or the marketing of limited long-term
30.28care insurance is subject to a fine of up to three times the amount of commissions paid for
30.29each policy involved in the violation or up to $10,000, whichever is greater.
30.30 EFFECTIVE DATE.This section is effective January 1, 2026.
30.31Sec. 4. Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:
30.32 Subdivision 1.Applicability.No health carrier, as defined in section 62A.011, shall
30.33offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a
30Article 3 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 31.1Minnesota resident except in compliance with this section. This section does not apply to
31.2the Comprehensive Health Association established in section 62E.10.
31.3 Sec. 5. Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:
31.4 Subd. 2.Guaranteed renewal.(a) No individual health plan may be offered, sold,
31.5issued, or renewed to a Minnesota resident unless the health plan provides that the plan is
31.6guaranteed renewable at a premium rate that does not take into account the claims experience
31.7or any change in the health status of any covered person that occurred after the initial issuance
31.8of the health plan to the person. The premium rate upon renewal must also otherwise comply
31.9with this section. A health carrier must not refuse to renew an individual health plan, except
31.10for nonpayment of premiums, fraud, or intentional misrepresentation of a material fact.
31.11 (b) A health carrier may elect to discontinue health plan coverage of an individual in
31.12the individual market only, in one or more of the following situations:
31.13 (1) the health carrier is ceasing to offer individual health plan coverage in the individual
31.14market in accordance with sections 62A.65, subdivision 8, and 62E.11, subdivision 9, and
31.15federal law;
31.16 (2) for network plans, the individual no longer resides, lives, or works in the service
31.17area of the health carrier, or the area for which the health carrier is authorized to do business,
31.18but only if coverage is terminated uniformly without regard to any health-status-related
31.19factor of covered individuals; or
31.20 (3) a decision by the health carrier to discontinue offering a particular type of individual
31.21health plan if it meets the following requirements:
31.22 (i) provides notice in writing to each individual provided coverage of that type of health
31.23plan at least 90 days before the date the coverage is discontinued;
31.24 (ii) provides notice to the department at least 30 business days before the issuer or health
31.25carrier provides notice to the individuals under item (i);
31.26 (iii) offers to each covered individual, on a guaranteed issue basis, the option to purchase
31.27any other individual health plan currently being offered by the health carrier or related health
31.28carrier for individuals in that market; and
31.29 (iv) acts uniformly without regard to any health status-related factor of covered individuals
31.30or dependents of covered individuals who may become eligible for coverage.
31Article 3 Sec. 5.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 32.1 Sec. 6. Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
32.2read:
32.3 Subd. 2a.Uniform modification of plan.(a) Only at the time of coverage renewal may
32.4a health carrier modify the health plan for a product, as defined under Code of Federal
32.5Regulations, title 45, section 144.103, offered to an individual in the individual market if
32.6the modification is effective uniformly for all individuals with that product.
32.7 (b) For purposes of paragraph (a), modifications made uniformly and solely pursuant to
32.8applicable federal or state requirements are considered a uniform modification of coverage
32.9if:
32.10 (1) the modification is made within a reasonable time period after the imposition or
32.11modification of the federal or state requirement; and
32.12 (2) the modification is directly related to the imposition or modification of the federal
32.13or state requirement.
32.14 (c) Other types of modifications made uniformly are considered a uniform modification
32.15of coverage if the health plan for the product in the individual market meets all of the
32.16following criteria:
32.17 (1) the product is offered by the same health carrier;
32.18 (2) the product is offered as the same product network type, which includes but is not
32.19limited to a health maintenance organization, preferred provider organization, exclusive
32.20provider organization, point of service, or indemnity;
32.21 (3) the product continues to cover at least a majority of the same service area;
32.22 (4) within the product, each health plan has the same cost-sharing structure as before
32.23the modification, except for any variation in cost sharing solely related to changes in cost
32.24and utilization of medical care, or to maintain the same metal level, as defined in section
32.2562K.06, subdivision 4; and
32.26 (5) the product provides the same covered benefits, except for any changes in benefits
32.27that cumulatively impact the plan-adjusted index rate as defined under Code of Federal
32.28Regulations, title 45, section 144.103, for any health plan within the product within an
32.29allowable variation of plus or minus two percentage points, not including changes pursuant
32.30to applicable federal or state requirements.
32Article 3 Sec. 6.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 33.1 Sec. 7. Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:
33.2 Subd. 2.Coverage cancellation; nonrenewal.No health maintenance organization may
33.3cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
33.4for health care coverage; (2) termination of the health care plan subject to section 62A.65,
33.5subdivisions 2 and 2a; (3) termination of the group plan; (4) enrollee moving out of the area
33.6served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
33.7moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
33.862D.104; (6) failure to make co-payments required by pay premiums as provided by the
33.9terms of the health care plan, including timeliness requirements; (7) fraud or
33.10misrepresentation by the enrollee with respect to eligibility for coverage or any other material
33.11fact; or (8) other reasons established in rules promulgated by the commissioner of health.
33.12Sec. 8. Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:
33.13 Subd. 2a.Cancellation or nonrenewal notice.Enrollees shall be given 30 days' notice
33.14of any cancellation or nonrenewal, except that: (1) enrollees in a plan terminated under
33.15section 62A.65, subdivisions 2, clause (4), and 2a, must receive the 90 days' notice required
33.16under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2) enrollees who are
33.17eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive
33.1890 days' notice as provided under section 62D.121, subdivision 5.
33.19Sec. 9. Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:
33.20 Subdivision 1.Replacement coverage.When membership of an enrollee who has
33.21individual health coverage is terminated by the health maintenance organization for a reason
33.22other than (a) failure to pay the charge for health care coverage; (b) failure to make
33.23co-payments required by pay premiums as provided by the terms of the health care plan,
33.24including timeliness requirements; (c) enrollee moving out of the area served; or (d) a
33.25materially false statement or misrepresentation by the enrollee in the application for
33.26membership, the health maintenance organization must offer or arrange to offer replacement
33.27coverage, without evidence of insurability, without preexisting condition exclusions, and
33.28without interruption of coverage.
33.29Sec. 10. Minnesota Statutes 2024, section 62J.26, subdivision 1, is amended to read:
33.30 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
33.31the meanings given unless the context otherwise requires:
33.32 (1) "commissioner" means the commissioner of commerce;
33Article 3 Sec. 10.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 34.1 (2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;
34.2 (3) "health plan" means a health plan as defined in section 62A.011, subdivision 3, but
34.3includes coverage listed in clauses (7) and (10) of that definition;
34.4 (4) "mandated health benefit proposal" or "proposal" means a proposal that would
34.5statutorily require a health plan company to do the following:
34.6 (i) provide coverage or increase the amount of coverage for the treatment of a particular
34.7disease, condition, or other health care need;
34.8 (ii) provide coverage or increase the amount of coverage of a particular type of health
34.9care treatment or service or of equipment, supplies, or drugs used in connection with a health
34.10care treatment or service; or
34.11 (iii) provide coverage for care delivered by a specific type of provider; and
34.12 (iv) require a particular benefit design or impose conditions on cost-sharing for:
34.13 (A) the treatment of a particular disease, condition, or other health care need;
34.14 (B) a particular type of health care treatment or service; or
34.15 (C) the provision of medical equipment, supplies, or a prescription drug used in
34.16connection with treating a particular disease, condition, or other health care need; or
34.17 (v) impose limits or conditions on a contract between a health plan company and a health
34.18care provider.
34.19 (5) "Minnesota public health care program" means a public health care program
34.20administered by the commissioner of human services under chapters 256B and 256L.
34.21 (b) "Mandated health benefit proposal" does not include health benefit proposals:
34.22 (1) amending the scope of practice of a licensed health care professional; or
34.23 (2) that make state law consistent with federal law; or
34.24 (3) that apply exclusively to Minnesota public health care programs.
34.25Sec. 11. Minnesota Statutes 2024, section 62J.26, subdivision 2, is amended to read:
34.26 Subd. 2.Evaluation process and content.(a) The commissioner, in consultation with
34.27the commissioners of health, human services, and management and budget, must evaluate
34.28all mandated health benefit proposals as provided under subdivision 3.
34Article 3 Sec. 11.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 35.1 (b) The purpose of the evaluation is to provide the legislature with a complete and timely
35.2analysis of all ramifications of any mandated health benefit proposal. The evaluation must
35.3include, in addition to other relevant information, the following to the extent applicable:
35.4 (1) scientific and medical information on the mandated health benefit proposal, on the
35.5potential for harm or benefit to the patient, and on the comparative benefit or harm from
35.6alternative forms of treatment, and must include the results of at least one professionally
35.7accepted and controlled trial comparing the medical consequences of the proposed therapy,
35.8alternative therapy, and no therapy;
35.9 (2) public health, economic, and fiscal impacts of the mandated health benefit proposal
35.10on persons receiving health services in Minnesota, on persons receiving health services in
35.11a Minnesota public health care program, on the relative cost-effectiveness of the proposal,
35.12and on the health care system in general;
35.13 (3) the extent to which the treatment, service, equipment, or drug is generally utilized
35.14by a significant portion of the population and used in the Minnesota public health care
35.15programs;
35.16 (4) the extent to which insurance coverage for the mandated health benefit proposal is
35.17already generally available and available in the Minnesota public health care programs;
35.18 (5) the extent to which the mandated health benefit proposal, by health plan category,
35.19would apply to the benefits offered to the health plan's enrollees and enrollees in the
35.20Minnesota public health care programs;
35.21 (6) the extent to which the mandated health benefit proposal will increase or decrease
35.22the cost of the treatment, service, equipment, or drug;
35.23 (7) the extent to which the mandated health benefit proposal may increase enrollee
35.24premiums; and
35.25 (8) if the proposal applies to a qualified health plan as defined in section 62A.011,
35.26subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
35.27using commercial market reimbursement rates in accordance with Code of Federal
35.28Regulations, title 45, section 155.170.
35.29 (c) The commissioner shall consider actuarial analysis done by health plan companies
35.30and any other proponent or opponent of the mandated health benefit proposal in determining
35.31the cost of the proposal.
35.32 (d) The commissioner must summarize the nature and quality of available information
35.33on these issues, and, if possible, must provide preliminary information to the public. The
35Article 3 Sec. 11.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 36.1commissioner may conduct research on these issues or may determine that existing research
36.2is sufficient to meet the informational needs of the legislature. The commissioner may seek
36.3the assistance and advice of researchers, community leaders, or other persons or organizations
36.4with relevant expertise. The commissioner must provide the public with at least 45 days'
36.5notice when requesting information pursuant to this section. The commissioner must notify
36.6the chief authors of a bill when a request for information is issued.
36.7 (e) Information submitted to the commissioner pursuant to this section that meets the
36.8definition of trade secret information, as defined in section 13.37, subdivision 1, paragraph
36.9(b), is nonpublic data.
36.10 (f) The commissioner must publish all evaluations conducted under this section on a
36.11publicly available website within 30 days of the evaluation's completion.
36.12Sec. 12. Minnesota Statutes 2024, section 62J.26, subdivision 3, is amended to read:
36.13 Subd. 3.Requirements for evaluation.(a) No later than August 1 of the year preceding
36.14the legislative session in which a an incumbent legislator is planning on introducing a bill
36.15containing a mandated health benefit proposal, or is planning on offering an amendment to
36.16a bill that adds a mandated health benefit, the prospective author must notify the chair of
36.17one of the standing legislative committees that have jurisdiction over the subject matter of
36.18the proposal. No later than 15 days after notification is received, the chair must notify the
36.19commissioner that an evaluation of a mandated health benefit proposal is required to be
36.20completed in accordance with this section in order to inform the legislature before any action
36.21is taken on the proposal by either house of the legislature.
36.22 (b) The commissioner must conduct an evaluation described in subdivision 2 of each
36.23mandated health benefit proposal for which an evaluation is required under paragraph (a).
36.24 (c) If the evaluation of multiple proposals are required, the commissioner must consult
36.25with the chairs of the standing legislative committees having jurisdiction over the subject
36.26matter of the mandated health benefit proposals to prioritize the evaluations and establish
36.27a reporting date for each proposal to be evaluated.
36.28 (d) By December 31 of the year in which a mandated health benefit proposal, for which
36.29an evaluation described in subdivision 2 has not been conducted, is enacted, the commissioner
36.30must conduct an evaluation described in subdivision 2. The evaluation required by this
36.31paragraph applies to mandated health benefit proposals:
36.32 (1) introduced or offered by a legislator who was not seated by the deadline for
36.33notification under paragraph (a);
36Article 3 Sec. 12.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 37.1 (2) enacted without conformity to paragraph (a); or
37.2 (3) for which an evaluation was required under paragraph (b) but was not conducted.
37.3 Sec. 13. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
37.4read:
37.5 Subd. 6.Conformity.A mandated health benefit proposal enacted into law is effective
37.6whether or not it is in conformity with this section.
37.7 Sec. 14. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
37.8read:
37.9 Subd. 7.Adoption of forms.(a) The commissioner of commerce must adopt forms, by
37.10July 1, 2026, for the following:
37.11 (1) an incumbent legislator to notify the chair of the mandated health benefit proposal
37.12under subdivision 3, paragraph (a); and
37.13 (2) the chair to notify the commissioner of the mandated health benefit proposal under
37.14subdivision 3, paragraph (a).
37.15 (b) The forms adopted under this subdivision must include all information needed from
37.16the legislator introducing or offering the mandated health benefit proposal for the
37.17commissioner to conduct the required evaluation.
37.18 ARTICLE 4
37.19 GENERAL INSURANCE
37.20Section 1. Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:
37.21 Subdivision 1.General powers.(a) In connection with the duties and responsibilities
37.22entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
37.23of commerce may:
37.24 (1) make public or private investigations within or without this state as the commissioner
37.25considers necessary to determine whether any person has violated or is about to violate any
37.26law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
37.27 (2) require or permit any person to file a statement in writing, under oath or otherwise
37.28as the commissioner determines, as to all the facts and circumstances concerning the matter
37.29being investigated;
37Article 4 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 38.1 (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
38.2duties and responsibilities entrusted to the commissioner;
38.3 (4) conduct investigations and hold hearings for the purpose of compiling information
38.4related to the duties and responsibilities entrusted to the commissioner;
38.5 (5) examine the books, accounts, records, and files of every licensee, and of every person
38.6who is engaged in any activity regulated; the commissioner or a designated representative
38.7shall have free access during normal business hours to the offices and places of business of
38.8the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
38.9in the place of business;
38.10 (6) publish information which is contained in any order issued by the commissioner;
38.11 (7) require any person subject to duties and responsibilities entrusted to the commissioner,
38.12to report all sales or transactions that are regulated. The reports must be made within ten
38.13days after the commissioner has ordered the report. The report is accessible only to the
38.14respondent and other governmental agencies unless otherwise ordered by a court of competent
38.15jurisdiction; and
38.16 (8) assess a natural person or entity subject to the jurisdiction of the commissioner the
38.17necessary expenses of the investigation performed by the department when an investigation
38.18is made by order of the commissioner. The cost of the investigation shall be determined by
38.19the commissioner and is based on the salary cost of investigators or assistants and at an
38.20average rate per day or fraction thereof so as to provide for the total cost of the investigation.
38.21All money collected must be deposited into the general fund. A natural person or entity
38.22licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
38.23investigation results in no finding of a violation. This clause does not apply to a natural
38.24person or entity already subject to the assessment provisions of sections 60A.03 and
38.2560A.031.; and
38.26 (9) issue data calls.
38.27 (b) For purposes of this section, "data call" means a written request from the
38.28commissioner to two or more companies or persons subject to the commissioner's jurisdiction
38.29to provide data or other information within a reasonable time period for a targeted regulatory
38.30oversight purpose. A data call is not market analysis, as defined under section 60A.031,
38.31subdivision 4, paragraph (f), and is not subject to section 60A.033.
38Article 4 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 39.1 Sec. 2. Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
39.2read:
39.3 Subd. 1b.Data calls.(a) Information provided in response to a data call issued by the
39.4commissioner or the commissioner's authorized representative: (1) must be treated as
39.5nonpublic data, as defined under section 13.02, subdivision 9; and (2) is not subject to
39.6subpoena. The commissioner may create and make public summary data derived from data
39.7classified as nonpublic under this paragraph.
39.8 (b) The commissioner may grant access to data submitted by insurers in response to a
39.9data call issued by the commissioner or the commissioner's authorized representative to the
39.10National Association of Insurance Commissioners (NAIC) if NAIC agrees in writing to
39.11hold the data as nonpublic data.
39.12Sec. 3. Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:
39.13 Subd. 2.Power to compel production of evidence.For the purpose of any investigation,
39.14hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
39.15commissioner, the commissioner or a designated representative may issue data calls,
39.16administer oaths and affirmations, subpoena witnesses, compel their attendance, take
39.17evidence, and require the production of books, papers, correspondence, memoranda,
39.18agreements, or other documents or records that the commissioner considers relevant or
39.19material to the inquiry.
39.20 A subpoena issued pursuant to this subdivision must state that the person to whom the
39.21subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
39.22the requested records have been given to law enforcement personnel except:
39.23 (1) insofar as the disclosure is necessary to find and disclose the records; or
39.24 (2) pursuant to court order.
39.25Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:
39.26 Subd. 4a.Maximum interest rate.(a) No conventional or cooperative apartment loan
39.27or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
39.28lawful interest rate in an amount equal to the Federal National Mortgage Association posted
39.29yields on 30-year mortgage commitments for delivery within 60 days on standard
39.30conventional fixed-rate mortgages published in the Wall Street Journal for the last business
39.31day of the second preceding month average prime offer rate, as defined in Code of Federal
39.32Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
39Article 4 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 40.1recently published by the United States Consumer Financial Protection Bureau on the last
40.2date the discounted interest rate for the transaction is set before consummation, plus four
40.3percentage points. If the index is not available, a substitute index may be adopted by a
40.4commissioner order.
40.5 (b) The maximum lawful interest rate applicable to a cooperative apartment loan or
40.6contract for deed at the time the loan or contract is made is the maximum lawful interest
40.7rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
40.8the provisions of section 334.01, a cooperative apartment loan or contract for deed may
40.9provide, at the time the loan or contract is made, for the application of specified different
40.10consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
40.11the maximum lawful interest rate applicable to the loan or contract at the time the loan or
40.12contract is made.
40.13 (c) The maximum interest rate that can be charged on a conventional loan or a contract
40.14for deed, with a duration of ten years or less, for the purchase of real estate described in
40.15section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
40.16under paragraph (a) or 15.75 percent per year, whichever is less. This paragraph is effective
40.17August 1, 1992.
40.18 (d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
40.19conventional or cooperative apartment loans made pursuant to a borrower's interest rate
40.20commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
40.21commitment for conventional or cooperative apartment loans made upon payment of a
40.22forward commitment fee including a borrower's loan commitment issued pursuant to a
40.23forward commitment, which commitment provides for consummation within some future
40.24time following the issuance of the commitment may be consummated pursuant to the
40.25provisions, including the interest rate, of the commitment notwithstanding the fact that the
40.26maximum lawful rate of interest at the time the contract for deed or conventional or
40.27cooperative apartment loan is actually executed or made is less than the commitment rate
40.28of interest, provided the commitment rate of interest does not exceed the maximum lawful
40.29interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
40.30existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
40.31the secretary of housing and urban development, the administrator of veterans affairs, or
40.32the administrator of the Farmers Home Administration, or (3) a contract for deed by making
40.33a conventional or cooperative apartment loan is deemed to be a new conventional or
40.34cooperative apartment loan for purposes of determining the maximum lawful rate of interest
40.35under this subdivision. The renegotiation of a conventional or cooperative apartment loan
40Article 4 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 41.1or a contract for deed is deemed to be a new loan or contract for deed for purposes of
41.2paragraph (b) and for purposes of determining the maximum lawful rate of interest under
41.3this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
41.4is deemed to be issued on the date the commitment is hand delivered by the lender to, or
41.5mailed to the borrower. A forward commitment is deemed to be issued on the date the
41.6forward commitment is hand delivered by the lender to, or mailed to the person paying the
41.7forward commitment fee to the lender, or to any one of them if there should be more than
41.8one. A commitment for a contract for deed is deemed to be issued on the date the commitment
41.9is initially executed by the contract for deed vendor or the vendor's authorized agent.
41.10 (e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
41.11loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
41.12borrower's loan commitment, or made pursuant to a forward commitment for conventional
41.13or cooperative apartment loans made upon payment of a forward commitment fee including
41.14a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
41.15not in excess of the rate of interest authorized by this subdivision at the time the commitment
41.16was made continues to be enforceable in accordance with its terms until the indebtedness
41.17is fully satisfied.
41.18Sec. 5. Minnesota Statutes 2024, section 60A.201, subdivision 2, is amended to read:
41.19 Subd. 2.Availability of other coverage; presumption.There shall be a rebuttable
41.20presumption that the following coverages are available from a licensed insurer:
41.21 (a) (1) all mandatory automobile insurance coverages required by chapter 65B;
41.22 (b) (2) private passenger automobile physical damage coverage;
41.23 (c) (3) homeowners and property insurance on owner-occupied dwellings whose value
41.24is less than $500,000. This figure shall be changed annually by the commissioner by the
41.25same percentage as the Consumer Price Index for the Minneapolis-St. Paul Metropolitan
41.26Area is changed;
41.27 (d) (4) any coverage readily available from three or more licensed insurers unless the
41.28licensed insurers quote a premium and terms not competitive with a premium and terms
41.29quoted by an eligible surplus lines insurer; and
41.30 (e) (5) workers' compensation insurance, except excess workers' compensation insurance
41.31which is not available from the Workers' Compensation Reinsurance Association.
41Article 4 Sec. 5.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 42.1 Sec. 6. Minnesota Statutes 2024, section 60A.201, is amended by adding a subdivision to
42.2read:
42.3 Subd. 7.FAIR plan coverage; notice.If the insurance placed by the surplus lines broker
42.4with a nonadmitted insurer is homeowners or property insurance on an owner-occupied
42.5dwelling, the broker must print, type, or stamp in not less than ten-point type on the face of
42.6the policy the following notice: "YOU MAY BE ELIGIBLE FOR COVERAGE THROUGH
42.7THE MINNESOTA FAIR PLAN, WHICH MAKES AVAILABLE PROPERTY AND
42.8LIABILITY COVERAGE, AS DEFINED BY THE MINNESOTA FAIR PLAN ACT, TO
42.9QUALIFIED APPLICANTS WHO HAVE BEEN UNABLE TO SECURE PROPERTY
42.10AND LIABILITY INSURANCE THROUGH THE NORMAL INSURANCE MARKETS."
42.11The notice under this subdivision must not be covered or concealed in any manner, and is
42.12in addition to the notice required under section 60A.207 or 60A.209.
42.13Sec. 7. Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision to
42.14read:
42.15 Subd. 5.Other violations.If the commissioner believes a person has committed a
42.16violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
42.17insurer by affiliates or by the insurance holding company system, the violation may serve
42.18as an independent basis for disapproving dividends or distributions and for placing the
42.19insurer under an order of supervision under chapter 60B.
42.20Sec. 8. Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:
42.21 Subd. 4.Control.The term "control," including the terms "controlling," "controlled
42.22by," and "under common control with," means the possession, direct or indirect, of the
42.23power to direct or cause the direction of the management and policies of a person, whether
42.24through the ownership of voting securities, by contract other than a commercial contract
42.25for goods or nonmanagement services, or otherwise, unless the power is the result of an
42.26official position with, or corporate office held by, or court appointment of, the person.
42.27Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
42.28the power to vote, or holds proxies representing, ten percent or more of the voting securities
42.29of any other person. This presumption may be rebutted by a showing made in the manner
42.30provided by section 60D.19, subdivision 11, that control does not exist in fact. The
42.31commissioner may determine, after furnishing all persons in interest notice and opportunity
42.32to be heard and making specific findings of fact to support such the determination, that
42.33control exists in fact, notwithstanding the absence of a presumption to that effect.
42Article 4 Sec. 8.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 43.1 Sec. 9. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
43.2read:
43.3 Subd. 4c.Group capital calculation instructions."Group capital calculation
43.4instructions" means the group capital calculation instructions adopted by the NAIC and as
43.5amended by the NAIC from time to time in accordance with procedures adopted by the
43.6NAIC.
43.7 Sec. 10. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
43.8read:
43.9 Subd. 6b.NAIC."NAIC" means the National Association of Insurance Commissioners.
43.10Sec. 11. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
43.11read:
43.12 Subd. 6c.NAIC liquidity stress test framework."NAIC liquidity stress test framework"
43.13means a NAIC publication which includes a history of the NAIC's development of regulatory
43.14liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity
43.15stress test instructions and reporting templates for a specific data year, scope criteria,
43.16instructions, and reporting template being adopted by the NAIC, and as amended by the
43.17NAIC from time to time in accordance with the procedures adopted by the NAIC.
43.18Sec. 12. Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:
43.19 Subd. 7.Person.A "person" is an individual, a corporation, a limited liability company,
43.20a partnership, an association, a joint stock company, a trust, an unincorporated organization,
43.21any similar entity or any combination of the foregoing acting in concert, but does not include
43.22any joint venture partnership exclusively engaged in owning, managing, leasing, or
43.23developing real or tangible personal property.
43.24Sec. 13. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
43.25read:
43.26 Subd. 7a.Scope criteria."Scope criteria," as detailed in the NAIC liquidity stress test
43.27framework, means the designated exposure bases along with minimum magnitudes of the
43.28designated exposure bases for the specified data year that are used to establish a preliminary
43.29list of insurers considered scoped into the NAIC liquidity stress test framework for that data
43.30year.
43Article 4 Sec. 13.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 44.1 Sec. 14. Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:
44.2 Subd. 2.Additional investment authority.In addition to investments in common stock,
44.3preferred stock, debt obligations, and other securities otherwise permitted under this chapter,
44.4a domestic insurer may also:
44.5 (a) Invest, in common stock, preferred stock, debt obligations, and other securities of
44.6one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
44.7assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
44.8investments, the insurer's surplus as regards policyholders will be is reasonable in relation
44.9to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
44.10amount of these investments, investments in domestic or foreign insurance subsidiaries and
44.11health maintenance organizations must be excluded, and there must be included:
44.12 (1) total net money or other consideration expended and obligations assumed in the
44.13acquisition or formation of a subsidiary, including all organizational expenses and
44.14contributions to capital and surplus of the subsidiary whether or not represented by the
44.15purchase of capital stock or issuance of other securities; and
44.16 (2) all amounts expended in acquiring additional common stock, preferred stock, debt
44.17obligations, and other securities; and all contributions to the capital or surplus, of a subsidiary
44.18subsequent to its acquisition or formation.
44.19 (b) Invest any amount in common stock, preferred stock, debt obligations, and other
44.20securities of one or more subsidiaries engaged or organized to engage exclusively in the
44.21ownership and management of assets authorized as investments for the insurer provided
44.22that the subsidiary agrees to limit its investments in any asset so that the investments will
44.23do not cause the amount of the total investment of the insurer to exceed any of the investment
44.24limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
44.25purpose of this paragraph, "the total investment of the insurer" includes:
44.26 (1) any direct investment by the insurer in an asset; and
44.27 (2) the insurer's proportionate share of any investment in an asset by any subsidiary of
44.28the insurer, which must be calculated by multiplying the amount of the subsidiary's
44.29investment by the percentage of the ownership of the subsidiary.
44.30 (c) With the approval of the commissioner, invest any greater amount in common stock,
44.31preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
44.32investment the insurer's surplus as regards policyholders will be is reasonable in relation to
44.33the insurer's outstanding liabilities and adequate to its financial needs.
44Article 4 Sec. 14.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 45.1 Sec. 15. Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:
45.2 Subdivision 1.Filing requirements.(a) No person other than the issuer shall: (1) make
45.3a tender offer for or a request or invitation for tenders of, or enter into any agreement to
45.4exchange securities or for, seek to acquire, or acquire, in the open market or otherwise, any
45.5voting security of a domestic insurer if, after the consummation thereof, the person would,
45.6directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
45.7of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
45.8of a domestic insurer or any person controlling a domestic insurer unless, at the time the
45.9offer, request, or invitation is made or the agreement is entered into, or before the acquisition
45.10of the securities if no offer or agreement is involved, the person has filed with the
45.11commissioner and has sent to the insurer, a statement containing the information required
45.12by this section and the offer, request, invitation, agreement, or acquisition has been approved
45.13by the commissioner in the manner prescribed in this section.
45.14 (b) For purposes of this section, a controlling person of a domestic insurer seeking to
45.15divest its controlling interest in the domestic insurer, in any manner, shall file with the
45.16commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
45.17least 30 days before the cessation of control. The commissioner shall determine those
45.18instances in which the party or parties seeking to divest or to acquire a controlling interest
45.19in an insurer will be required to file for and obtain approval of the transaction. The
45.20information must remain confidential until the conclusion of the transaction unless the
45.21commissioner, in the commissioner's discretion, determines that confidential treatment
45.22interferes with the enforcement of this section. This paragraph does not apply if the statement
45.23referred to in paragraph (a) is otherwise filed.
45.24 (c) With respect to a transaction subject to this section, the acquiring person must also
45.25file a preacquisition notification with the commissioner, which must contain the information
45.26set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
45.27may be subject to penalties specified in section 60D.18, subdivision 5.
45.28 (d) For purposes of this section, a domestic insurer includes a person controlling a
45.29domestic insurer unless the person, as determined by the commissioner, is either directly
45.30or through its affiliates primarily engaged in business other than the business of insurance.
45.31For the purposes of this section, "person" does not include any securities broker holding,
45.32in the usual and customary brokers broker's function, less than 20 percent of the voting
45.33securities of an insurance company or of any person that controls an insurance company.
45Article 4 Sec. 15.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 46.1 (e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
46.2remain confidential until the transaction is approved by the commissioner, except that all
46.3attachments filed with the statement remain confidential after the approval unless the
46.4commissioner, in the commissioner's discretion, determines that confidential treatment of
46.5any of this information will interfere with enforcement of this section.
46.6 Sec. 16. Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:
46.7 Subd. 3.Preacquisition notification; waiting period.(a) An acquisition covered by
46.8subdivision 2 may be subject to an order pursuant to subdivision 4 5 unless the acquiring
46.9person files a preacquisition notification and the waiting period has expired. The acquired
46.10person may file a preacquisition notification. The commissioner shall give confidential
46.11treatment to information submitted under this section in the same manner as provided in
46.12section 60D.22.
46.13 (b) The preacquisition notification must be in the form and contain the information as
46.14prescribed by the National Association of Insurance Commissioners relating to those markets
46.15that, under subdivision 2, paragraph (b), clause (5) (4), cause the acquisition not to be
46.16exempted from the provisions of this section. The commissioner may require the additional
46.17material and information as the commissioner deems necessary to determine whether the
46.18proposed acquisition, if consummated, would violate the competitive standard of subdivision
46.194. The required information may include an opinion of an economist as to the competitive
46.20impact of the acquisition in this state accompanied by a summary of the education and
46.21experience of the person indicating that person's ability to render an informed opinion.
46.22 (c) The waiting period required begins on the date of receipt of the commissioner of a
46.23preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
46.24or termination of the waiting period by the commissioner. Before the end of the waiting
46.25period, the commissioner on a onetime basis may require the submission of additional
46.26needed information relevant to the proposed acquisition, in which event the waiting period
46.27shall end on the earlier of the 30th day after receipt of the additional information by the
46.28commissioner or termination of the waiting period by the commissioner.
46.29Sec. 17. Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:
46.30 Subd. 4.Materiality.No information need be disclosed on the registration statement
46.31filed pursuant to subdivision 2 if the information is not material for the purposes of this
46.32section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
46.33exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
46Article 4 Sec. 17.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 47.1one percent or less of an insurer's admitted assets as of the 31st day of December next
47.2preceding shall not be deemed material for purposes of this section. The definition of
47.3materiality provided in this subdivision does not apply for purposes of the group capital
47.4calculation or the NAIC liquidity stress test framework.
47.5 Sec. 18. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
47.6read:
47.7 Subd. 11b.Group capital calculation.(a) Except as otherwise provided in this paragraph,
47.8the ultimate controlling person of every insurer subject to registration must concurrently
47.9file with the registration an annual group capital calculation as directed by the lead state
47.10insurance commissioner. The report must be completed in accordance with the NAIC group
47.11capital calculation instructions, which may permit the lead state insurance commissioner
47.12to allow a controlling person that is not the ultimate controlling person to file the group
47.13capital calculation. The report must be filed with the lead state insurance commissioner of
47.14the insurance holding company system, as determined by the commissioner in accordance
47.15with the procedures within the Financial Analysis Handbook adopted by the NAIC. The
47.16following insurance holding company systems are exempt from filing the group capital
47.17calculation:
47.18 (1) an insurance holding company system that (i) has only one insurer within the insurance
47.19holding company system's holding company structure, (ii) only writes business and is only
47.20licensed in the insurance holding company system's domestic state, and (iii) assumes no
47.21business from any other insurer;
47.22 (2) an insurance holding company system that is required to perform a group capital
47.23calculation specified by the United States Federal Reserve Board. The lead state insurance
47.24commissioner must request the calculation from the Federal Reserve Board under the terms
47.25of information sharing agreements in effect. If the Federal Reserve Board is unable to share
47.26the calculation with the lead state insurance commissioner, the insurance holding company
47.27system is not exempt from the group capital calculation filing;
47.28 (3) an insurance holding company system whose non-United States groupwide supervisor
47.29is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
47.30that recognizes the United States state regulatory approach to group supervision and group
47.31capital; or
47.32 (4) an insurance holding company system:
47Article 4 Sec. 18.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 48.1 (i) that provides information to the lead state insurance commissioner that meets the
48.2requirements for accreditation under the NAIC financial standards and accreditation program,
48.3either directly or indirectly through the groupwide supervisor, that has determined the
48.4information is satisfactory to allow the lead state insurance commissioner to comply with
48.5the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook;
48.6and
48.7 (ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
48.8recognizes and accepts, as specified by the commissioner in an administrative rule, the
48.9group capital calculation as the worldwide group capital assessment for United States
48.10insurance groups that operate in that jurisdiction.
48.11 (b) Notwithstanding paragraph (a), clauses (3) and (4), a lead state insurance
48.12commissioner must require the group capital calculation for the United States operations
48.13of any non-United States based insurance holding company system where, after any necessary
48.14consultation with other supervisors or officials, requiring the group capital calculation is
48.15deemed appropriate by the lead state insurance commissioner for prudential oversight and
48.16solvency monitoring purposes or for ensuring the competitiveness of the insurance
48.17marketplace.
48.18 (c) Notwithstanding the exemptions from filing the group capital calculation under
48.19paragraph (a), the lead state insurance commissioner may exempt the ultimate controlling
48.20person from filing the annual group capital calculation or accept a limited group capital
48.21filing or report in accordance with criteria specified by the commissioner in an administrative
48.22rule.
48.23 (d) If the lead state insurance commissioner determines that an insurance holding company
48.24system no longer meets one or more of the requirements for an exemption from filing the
48.25group capital calculation under this subdivision, the insurance holding company system
48.26must file the group capital calculation at the next annual filing date unless given an extension
48.27by the lead state insurance commissioner based on reasonable grounds shown.
48.28Sec. 19. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
48.29read:
48.30 Subd. 11c.Liquidity stress test.(a) The ultimate controlling person of every insurer
48.31subject to registration and also scoped into the NAIC liquidity stress test framework must
48.32file the results of a specific year's liquidity stress test. The filing must be made to the lead
48.33state insurance commissioner of the insurance holding company system, as determined by
48.34the procedures within the Financial Analysis Handbook adopted by the NAIC.
48Article 4 Sec. 19.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 49.1 (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
49.2specific data year. The scope criteria must be reviewed at least annually by the NAIC
49.3Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
49.4change made to the NAIC liquidity stress test framework or to the data year for which the
49.5scope criteria must be measured is effective January 1 of the year following the calendar
49.6year in which the change is adopted. An insurer meeting at least one threshold of the scope
49.7criteria is scoped into the NAIC liquidity stress test framework for the specified data year
49.8unless the lead state insurance commissioner, in consultation with the NAIC Financial
49.9Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
49.10the insurer should not be scoped into the framework for that data year. An insurer that does
49.11not trigger at least one threshold of the scope criteria is scoped out of the NAIC liquidity
49.12stress test framework for the specified data year unless the lead state insurance commissioner,
49.13in consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
49.14Task Force's successor, determines the insurer should be scoped into the framework for the
49.15specified data year.
49.16 (c) The commissioner and other state insurance commissioners must avoid scoping
49.17insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The lead
49.18state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
49.19or the NAIC Financial Stability Task Force's successor, must assess irregular scope status
49.20as part of an insurer's determination.
49.21 (d) The performance of and filing of the results from a specific year's liquidity stress
49.22test must comply with (1) the NAIC liquidity stress test framework's instructions and
49.23reporting templates for the specific year, and (2) any lead state insurance commissioner
49.24determinations, in consultation with the NAIC Financial Stability Task Force or the NAIC
49.25Financial Stability Task Force's successor, provided within the framework.
49.26Sec. 20. [60D.195] GROUP CAPITAL CALCULATION.
49.27 Subdivision 1.Annual group capital calculation; exemption permitted.The lead
49.28state insurance commissioner may exempt the ultimate controlling person from filing the
49.29annual group capital calculation if the lead state insurance commissioner makes a
49.30determination that the insurance holding company system meets the following criteria:
49.31 (1) has annual direct written and unaffiliated assumed premium, including international
49.32direct and assumed premium but excluding premiums reinsured with the Federal Crop
49.33Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
49Article 4 Sec. 20.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 50.1 (2) has no insurers within the insurance holding company's structure that are domiciled
50.2outside of the United States or a United States territory;
50.3 (3) has no banking, depository, or other financial entity that is subject to an identified
50.4regulatory capital framework within the insurance holding company's structure;
50.5 (4) attests that no material changes in the transactions between insurers and noninsurers
50.6in the group have occurred since the last annual group capital filing; and
50.7 (5) the noninsurers within the holding company system do not pose a material financial
50.8risk to the insurer's ability to honor policyholder obligations.
50.9 Subd. 2.Limited group capital filing.The lead state insurance commissioner may
50.10accept a limited group capital filing in lieu of the group capital calculation if:
50.11 (1) the insurance holding company system has annual direct written and unaffiliated
50.12assumed premium, including international direct and assumed premium but excluding
50.13premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
50.14of less than $1,000,000,000; and
50.15 (2) the insurance holding company system:
50.16 (i) has no insurers within the insurance holding company's structure that are domiciled
50.17outside of the United States or a United States territory;
50.18 (ii) does not include a banking, depository, or other financial entity that is subject to an
50.19identified regulatory capital framework; and
50.20 (iii) attests that no material changes in transactions between insurers and noninsurers in
50.21the group have occurred and the noninsurers within the holding company system do not
50.22pose a material financial risk to the insurer's ability to honor policyholder obligations.
50.23 Subd. 3.Previous exemption; required filing.For an insurance holding company that
50.24has previously met an exemption with respect to the group capital calculation under
50.25subdivision 1 or 2, the lead state insurance commissioner may at any time require the ultimate
50.26controlling person to file an annual group capital calculation, completed in accordance with
50.27the NAIC group capital calculation instructions, if:
50.28 (1) an insurer within the insurance holding company system is in a risk-based capital
50.29action level event under section 60A.62 or a similar standard for a non-United States insurer;
50.30 (2) an insurer within the insurance holding company system meets one or more of the
50.31standards of an insurer deemed to be in hazardous financial condition, as defined under
50.32section 60E.02, subdivision 5; or
50Article 4 Sec. 20.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 51.1 (3) an insurer within the insurance holding company system otherwise exhibits qualities
51.2of a troubled insurer, as determined by the lead state insurance commissioner based on
51.3unique circumstances, including but not limited to the type and volume of business written,
51.4ownership and organizational structure, federal agency requests, and international supervisor
51.5requests.
51.6 Subd. 4.Non-United States jurisdictions; recognition and acceptance.A non-United
51.7States jurisdiction is deemed to recognize and accept the group capital calculation if the
51.8non-United States jurisdiction:
51.9 (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
51.10 (i) recognizes the United States state regulatory approach to group supervision and group
51.11capital by providing confirmation by a competent regulatory authority in the non-United
51.12States jurisdiction that insurers and insurance groups whose lead state is accredited by the
51.13NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
51.14insurance group supervision, including worldwide group governance, solvency and capital,
51.15and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
51.16including worldwide group governance, solvency and capital, and reporting, at the level of
51.17the worldwide parent undertaking of the insurance or reinsurance group by the non-United
51.18States jurisdiction; or
51.19 (ii) if no United States insurance group operates in the non-United States jurisdiction,
51.20indicates formally in writing to the lead state with a copy to the International Association
51.21of Insurance Supervisors that the group capital calculation is an acceptable international
51.22capital standard. The formal indication under this item serves as the documentation otherwise
51.23required under item (i); and
51.24 (2) provides confirmation by a competent regulatory authority in the non-United States
51.25jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
51.26affiliated entities, if applicable, must be provided to the lead state insurance commissioner
51.27in accordance with a memorandum of understanding or similar document between the
51.28commissioner and the non-United States jurisdiction, including but not limited to the
51.29International Association of Insurance Supervisors Multilateral Memorandum of
51.30Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
51.31The commissioner must determine, in consultation with the NAIC committee process, if
51.32the information sharing agreement requirements are effective.
51.33 Subd. 5.Non-United States jurisdiction; publication.(a) A list of non-United States
51.34jurisdictions that recognize and accept the group capital calculation under section 60D.19,
51Article 4 Sec. 20.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 52.1subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
52.2process to assist the lead state insurance commissioner determine what insurers must file
52.3an annual group capital calculation. The list must clarify the situations in which a jurisdiction
52.4is exempt from filing under section 60D.19, subdivision 11b, paragraph (a), clause (4). To
52.5assist with a determination under section 60D.19, subdivision 11b, paragraph (b), the list
52.6must also identify whether a jurisdiction that is exempt under section 60D.19, subdivision
52.711b, paragraph (a), clause (3) or (4), requires a group capital filing for any United States
52.8insurance group's operations in the non-United States jurisdiction.
52.9 (b) For a non-United States jurisdiction where no United States insurance group operates,
52.10the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
52.11support for a recommendation to be published that the non-United States jurisdiction is a
52.12jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
52.13committee process.
52.14 (c) If the lead state insurance commissioner makes a determination pursuant to section
52.1560D.19, subdivision 11b, that differs from the NAIC list, the lead state insurance
52.16commissioner must provide thoroughly documented justification to the NAIC and other
52.17states.
52.18 (d) Upon a determination by the lead state insurance commissioner that a non-United
52.19States jurisdiction no longer meets one or more of the requirements to recognize and accept
52.20the group capital calculation, the lead state insurance commissioner may provide a
52.21recommendation to the NAIC that the non-United States jurisdiction be removed from the
52.22list of jurisdictions that recognize and accept the group capital calculation.
52.23Sec. 21. Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:
52.24 Subdivision 1.Transactions within an insurance holding company system.(a)
52.25Transactions within an insurance holding company system to which an insurer subject to
52.26registration is a party are subject to the following standards:
52.27 (1) the terms shall be fair and reasonable;
52.28 (2) agreements for cost-sharing services and management shall include the provisions
52.29required by rule issued by the commissioner;
52.30 (3) charges or fees for services performed shall be reasonable;
52.31 (4) expenses incurred and payment received shall be allocated to the insurer in conformity
52.32with customary insurance accounting practices consistently applied;
52Article 4 Sec. 21.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 53.1 (5) the books, accounts, and records of each party to all such transactions shall be so
53.2maintained as to clearly and accurately disclose the nature and details of the transactions
53.3including this accounting information as is necessary to support the reasonableness of the
53.4charges or fees to the respective parties; and
53.5 (6) the insurer's surplus as regards policyholders following any dividends or distributions
53.6to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
53.7and adequate to its financial needs.;
53.8 (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
53.9financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
53.10be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
53.11may require the insurer to secure and maintain either a deposit, held by the commissioner,
53.12or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
53.13the duration of the contract, agreement, or the existence of the condition for which the
53.14commissioner required the deposit or bond. When determining whether a deposit or bond
53.15is required, the commissioner must consider whether concerns exist with respect to the
53.16affiliated person's ability to fulfill the contract or agreement if the insurer entered into
53.17liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
53.18that would be grounds for supervision, conservation, or a delinquency proceeding, and a
53.19deposit or bond is necessary, the commissioner may determine the amount of the deposit
53.20or bond, not to exceed the value of the contract or agreement in any one year, and whether
53.21the deposit or bond is required for a single contract, multiple contracts, or a contract only
53.22with a specific person or persons;
53.23 (8) all of an insurer's records and data held by an affiliate are and remain the property
53.24of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
53.25readily capable of segregation, at no additional cost to the insurer, from all other persons'
53.26records and data. For purposes of this clause, records and data include all records and data
53.27that are otherwise the property of the insurer in whatever form maintained, including but
53.28not limited to claims and claim files, policyholder lists, application files, litigation files,
53.29premium records, rate books, underwriting manuals, personnel records, financial records,
53.30or similar records within the affiliate's possession, custody, or control. At the request of the
53.31insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
53.32of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
53.33on which the data are maintained, (iii) obtain the software that runs the operating systems
53.34either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
53.35the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
53Article 4 Sec. 21.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 54.1must provide a waiver of any landlord lien or other encumbrance to provide the insurer
54.2access to all records and data in the event the affiliate defaults under a lease or other
54.3agreement; and
54.4 (9) premiums or other funds belonging to the insurer that are collected or held by an
54.5affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
54.6Any right of offset in the event an insurer is placed into receivership is subject to chapter
54.7576.
54.8 (b) The following transactions involving a domestic insurer and any person in its
54.9insurance holding company system, including amendments or modifications of affiliate
54.10agreements previously filed pursuant to this section, which are subject to any materiality
54.11standards contained in clauses (1) to (7), may not be entered into unless the insurer has
54.12notified the commissioner in writing of its intention to enter into the transaction at least 30
54.13days prior thereto, or a shorter period the commissioner permits, and the commissioner has
54.14not disapproved it within this period. The notice for amendments or modifications must
54.15include the reasons for the change and the financial impact on the domestic insurer. Informal
54.16notice must be reported, within 30 days after a termination of a previously filed agreement,
54.17to the commissioner for determination of the type of filing required, if any:
54.18 (1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
54.19provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
54.20lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
54.21policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
54.22each as of the 31st day of December next preceding;
54.23 (2) loans or extensions of credit to any person who is not an affiliate, where the insurer
54.24makes the loans or extensions of credit with the agreement or understanding that the proceeds
54.25of the transactions, in whole or in substantial part, are to be used to make loans or extensions
54.26of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
54.27making such loans or extensions of credit provided the transactions are equal to or exceed:
54.28(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
54.29or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
54.30percent of the insurer's admitted assets; each as of the 31st day of December next preceding;
54.31 (3) reinsurance agreements or modifications to those agreements, including: (i) all
54.32reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
54.33a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
54.34insurer's liabilities in any of the next three years, equals or exceeds five percent of the
54Article 4 Sec. 21.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 55.1insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
55.2including those agreements which may require as consideration the transfer of assets from
55.3an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
55.4nonaffiliate that any portion of such the assets will be transferred to one or more affiliates
55.5of the insurer;
55.6 (4) all management agreements, service contracts, tax allocation agreements, guarantees,
55.7and all cost-sharing arrangements;
55.8 (5) guarantees when made by a domestic insurer; provided, however, that a guarantee
55.9which is quantifiable as to amount is not subject to the notice requirements of this paragraph
55.10unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
55.11percent of surplus as regards policyholders as of the 31st day of December next preceding.
55.12Further, all guarantees which are not quantifiable as to amount are subject to the notice
55.13requirements of this paragraph;
55.14 (6) direct or indirect acquisitions or investments in a person that controls the insurer or
55.15in an affiliate of the insurer in an amount which, together with its present holdings in the
55.16investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
55.17acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, as otherwise
55.18authorized under this chapter, or in nonsubsidiary insurance affiliates that are subject to the
55.19provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and
55.20 (7) any material transactions, specified by regulation, which the commissioner determines
55.21may adversely affect the interests of the insurer's policyholders.
55.22 Nothing contained in this section authorizes or permits any transactions that, in the case
55.23of an insurer not a member of the same insurance holding company system, would be
55.24otherwise contrary to law.
55.25 (c) A domestic insurer may not enter into transactions which are part of a plan or series
55.26of like transactions with persons within the insurance holding company system if the purpose
55.27of those separate transactions is to avoid the statutory threshold amount and thus avoid the
55.28review that would occur otherwise. If the commissioner determines that the separate
55.29transactions were entered into over any 12-month period for the purpose, the commissioner
55.30may exercise the authority under section 60D.25.
55.31 (d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
55.32whether the transactions comply with the standards set forth in paragraph (a), and whether
55.33they may adversely affect the interests of policyholders.
55Article 4 Sec. 21.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 56.1 (e) The commissioner shall be notified within 30 days of any investment of the domestic
56.2insurer in any one corporation if the total investment in the corporation by the insurance
56.3holding company system exceeds ten percent of the corporation's voting securities.
56.4 (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
56.5subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
56.6conservatorship, or receivership proceedings against the insurer and to the authority of a
56.7supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
56.8chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
56.9obligations under the agreement or contract to perform services for the insurer that are: (1)
56.10an integral part of the insurer's operations, including but not limited to management,
56.11administrative, accounting, data processing, marketing, underwriting, claims handling,
56.12investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
56.13the insurer's obligations under insurance policies. The commissioner may require that an
56.14agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
56.15in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
56.16under this paragraph.
56.17Sec. 22. Minnesota Statutes 2024, section 60D.217, is amended to read:
56.18 60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
56.19INSURANCE GROUPS.
56.20 (a) The commissioner is authorized to act as the groupwide supervisor for any
56.21internationally active insurance group in accordance with the provisions of this section.
56.22However, the commissioner may otherwise acknowledge another regulatory official as the
56.23groupwide supervisor where the internationally active insurance group:
56.24 (1) does not have substantial insurance operations in the United States;
56.25 (2) has substantial insurance operations in the United States, but not in this state; or
56.26 (3) has substantial insurance operations in the United States and this state, but the
56.27commissioner has determined pursuant to the factors set forth in subsections paragraphs (b)
56.28and (f) that the other regulatory official is the appropriate groupwide supervisor.
56.29An insurance holding company system that does not otherwise qualify as an internationally
56.30active insurance group may request that the commissioner make a determination or
56.31acknowledgment as to a groupwide supervisor pursuant to this section.
56.32 (b) In cooperation with other state, federal, and international regulatory agencies, the
56.33commissioner will must identify a single groupwide supervisor for an internationally active
56Article 4 Sec. 22.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 57.1insurance group. The commissioner may determine that the commissioner is the appropriate
57.2groupwide supervisor for an internationally active insurance group that conducts substantial
57.3insurance operations concentrated in this state. However, the commissioner may acknowledge
57.4that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
57.5for the internationally active insurance group. The commissioner shall consider the following
57.6factors when making a determination or acknowledgment under this subsection paragraph:
57.7 (1) the place of domicile of the insurers within the internationally active insurance group
57.8that hold the largest share of the group's written premiums, assets, or liabilities;
57.9 (2) the place of domicile of the top-tiered insurer(s) insurer or insurers in the insurance
57.10holding company system of the internationally active insurance group;
57.11 (3) the location of the executive offices or largest operational offices of the internationally
57.12active insurance group;
57.13 (4) whether another regulatory official is acting or is seeking to act as the groupwide
57.14supervisor under a regulatory system that the commissioner determines to be:
57.15 (i) substantially similar to the system of regulation provided under the laws of this state;
57.16or
57.17 (ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
57.18analysis, and cooperation with other regulatory officials; and
57.19 (5) whether another regulatory official acting or seeking to act as the groupwide
57.20supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
57.21However, a commissioner identified under this section as the groupwide supervisor may
57.22determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
57.23supervisor. The acknowledgment of the groupwide supervisor shall be made after
57.24consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
57.25with and subject to the acknowledgment of other regulatory officials involved with
57.26supervision of members of the internationally active insurance group, and in consultation
57.27with the internationally active insurance group.
57.28 (c) Notwithstanding any other provision of law, when another regulatory official is acting
57.29as the groupwide supervisor of an internationally active insurance group, the commissioner
57.30shall acknowledge that regulatory official as the groupwide supervisor. However, in the
57.31event of a material change in the internationally active insurance group that results in:
57.32 (1) the internationally active insurance group's insurers domiciled in this state holding
57.33the largest share of the group's premiums, assets, or liabilities; or
57Article 4 Sec. 22.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 58.1 (2) this state being the place of domicile of the top-tiered insurer(s) insurer or insurers
58.2in the insurance holding company system of the internationally active insurance group,
58.3the commissioner shall make a determination or acknowledgment as to the appropriate
58.4groupwide supervisor for such an internationally active insurance group pursuant to
58.5subsection paragraph (b).
58.6 (d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
58.7insurer registered pursuant to section 60D.19 all information necessary to determine whether
58.8the commissioner may act as the groupwide supervisor of an internationally active insurance
58.9group or if the commissioner may acknowledge another regulatory official to act as the
58.10groupwide supervisor. Prior to issuing a determination that an internationally active insurance
58.11group is subject to groupwide supervision by the commissioner, the commissioner shall
58.12notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
58.13within the internationally active insurance group. The internationally active insurance group
58.14shall have not less than 30 days to provide the commissioner with additional information
58.15pertinent to the pending determination. The commissioner shall publish in the State Register
58.16and on the department's website the identity of internationally active insurance groups that
58.17the commissioner has determined are subject to groupwide supervision by the commissioner.
58.18 (e) If the commissioner is the groupwide supervisor for an internationally active insurance
58.19group, the commissioner is authorized to engage in any of the following groupwide
58.20supervision activities:
58.21 (1) assess the enterprise risks within the internationally active insurance group to ensure
58.22that:
58.23 (i) the material financial condition and liquidity risks to the members of the internationally
58.24active insurance group that are engaged in the business of insurance are identified by
58.25management; and
58.26 (ii) reasonable and effective mitigation measures are in place; or
58.27 (2) request, from any member of an internationally active insurance group subject to the
58.28commissioner's supervision, information necessary and appropriate to assess enterprise risk,
58.29including but not limited to information about the members of the internationally active
58.30insurance group regarding:
58.31 (i) governance, risk assessment, and management;
58.32 (ii) capital adequacy; and
58.33 (iii) material intercompany transactions;
58Article 4 Sec. 22.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 59.1 (3) coordinate and, through the authority of the regulatory officials of the jurisdictions
59.2where members of the internationally active insurance group are domiciled, compel
59.3development and implementation of reasonable measures designed to ensure that the
59.4internationally active insurance group is able to timely recognize and mitigate enterprise
59.5risks to members of such the internationally active insurance group that are engaged in the
59.6business of insurance;
59.7 (4) communicate with other state, federal and international regulatory agencies for
59.8members within the internationally active insurance group and share relevant information
59.9subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
59.10set forth in section 60D.215 or otherwise;
59.11 (5) enter into agreements with or obtain documentation from any insurer registered under
59.12section 60D.19, any member of the internationally active insurance group, and any other
59.13state, federal, and international regulatory agencies for members of the internationally active
59.14insurance group, providing the basis for or otherwise clarifying the commissioner's role as
59.15groupwide supervisor, including provisions for resolving disputes with other regulatory
59.16officials. Such Agreements or documentation under this clause shall not serve as evidence
59.17in any proceeding that any insurer or person within an insurance holding company system
59.18not domiciled or incorporated in this state is doing business in this state or is otherwise
59.19subject to jurisdiction in this state; and
59.20 (6) other groupwide supervision activities, consistent with the authorities and purposes
59.21enumerated above, as considered necessary by the commissioner.
59.22 (f) If the commissioner acknowledges that another regulatory official from a jurisdiction
59.23that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
59.24authorized to reasonably cooperate, through supervisory colleges or otherwise, with
59.25groupwide supervision undertaken by the groupwide supervisor, provided that:
59.26 (1) the commissioner's cooperation is in compliance with the laws of this state; and
59.27 (2) the regulatory official acknowledged as the groupwide supervisor also recognizes
59.28and cooperates with the commissioner's activities as a groupwide supervisor for other
59.29internationally active insurance groups where applicable. Where such recognition and
59.30cooperation by the groupwide supervisor is not reasonably reciprocal, the commissioner is
59.31authorized to refuse recognition and cooperation.
59.32 (g) The commissioner is authorized to enter into agreements with or obtain documentation
59.33from any insurer registered under section 60D.19, any affiliate of the insurer, and other
59.34state, federal, and international regulatory agencies for members of the internationally active
59Article 4 Sec. 22.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 60.1insurance group, that provide the basis for or otherwise clarify a regulatory official's role
60.2as groupwide supervisor.
60.3 (h) A registered insurer subject to this section shall be liable for and shall pay the
60.4reasonable expenses of the commissioner's participation in the administration of this section,
60.5including the engagement of attorneys, actuaries, and any other professionals and all
60.6reasonable travel expenses.
60.7 Sec. 23. Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:
60.8 Subdivision 1.Classification protection and use of information by commissioner.(a)
60.9Documents, materials, or other information in the possession or control of the department
60.10that are obtained by or disclosed to the commissioner or any other person in the course of
60.11an examination or investigation made pursuant to section 60D.21 and all information reported
60.12pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
60.13(e); 60D.18; 60D.19; and 60D.20,; and 60D.217, are classified as confidential or protected
60.14nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
60.15in evidence in a private civil action. However, the commissioner may use the documents,
60.16materials, or other information in the furtherance of any regulatory or legal action brought
60.17as a part of the commissioner's official duties. The commissioner shall not otherwise make
60.18the documents, materials, or other information public without the prior written consent of
60.19the insurer to which it pertains unless the commissioner, after giving the insurer and its
60.20affiliates who would be affected by this action notice and opportunity to be heard, determines
60.21that the interest of policyholders, shareholders, or the public will be is served by the
60.22publication of it, in which event the commissioner may publish all or any part in the manner
60.23the commissioner deems appropriate.
60.24 (b) For purposes of the information reported and provided to the department pursuant
60.25to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
60.26the group capital calculation and group capital ratio produced within the calculation and
60.27any group capital information received from an insurance holding company supervised by
60.28the Federal Reserve Board or any United States groupwide supervisor.
60.29 (c) For purposes of the information reported and provided to the department pursuant
60.30to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
60.31the liquidity stress test results and supporting disclosures and any liquidity stress test
60.32information received from an insurance holding company supervised by the Federal Reserve
60.33Board and non-United States groupwide supervisors.
60Article 4 Sec. 23.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 61.1 Sec. 24. Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:
61.2 Subd. 3.Sharing of information.In order to assist in the performance of the
61.3commissioner's duties, the commissioner:
61.4 (1) may share documents, materials, or other information, including the confidential,
61.5protected nonpublic, and privileged documents, materials, or information subject to this
61.6section, including proprietary and trade secret documents and materials, with: (i) other state,
61.7federal, and international regulatory agencies, with; (ii) the NAIC and its affiliates and
61.8subsidiaries,; (iii) any third-party consultants designated by the commissioner; and with
61.9(iv) state, federal, and international law enforcement authorities, including members of any
61.10supervisory college described in section 60D.215, provided that the recipient agrees in
61.11writing to maintain the confidentiality and privileged status of the document, material, or
61.12other information, and has verified in writing the legal authority to maintain confidentiality;
61.13 (2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
61.14privileged documents, materials, or information reported pursuant to section 60D.19,
61.15subdivision 11a, with commissioners of states having statutes or regulations substantially
61.16similar to subdivision 1 and who have agreed in writing not to disclose this information;
61.17 (3) may receive documents, materials, or information, including otherwise confidential
61.18and privileged documents, materials, or information from the NAIC and its the NAIC's
61.19affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
61.20or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
61.21privileged any document, material, or information received with notice or the understanding
61.22that it is confidential or privileged under the laws of the jurisdiction that is the source of the
61.23document, material, or information; and
61.24 (4) shall enter into written agreements with the NAIC and a third-party consultant
61.25designated by the commissioner governing sharing and use of information provided pursuant
61.26to sections 60D.15 to 60D.29 consistent with this clause that shall:
61.27 (i) specify procedures and protocols regarding the confidentiality and security of
61.28information shared with the NAIC and its affiliates and subsidiaries or a third-party consultant
61.29designated by the commissioner pursuant to sections 60D.15 to 60D.29, including procedures
61.30and protocols for sharing by the NAIC with other state, federal, or international regulators.
61.31The agreement must provide that the recipient agrees in writing to maintain the confidentiality
61.32and privileged status of the documents, materials, or other information, and has verified in
61.33writing the legal authority to maintain confidentiality;
61Article 4 Sec. 24.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 62.1 (ii) specify that ownership of information shared with the NAIC and its affiliates and
62.2subsidiaries or a third-party consultant pursuant to sections 60D.15 to 60D.29 remains with
62.3the commissioner and the NAIC's or a third-party consultant's, as designated by the
62.4commissioner, use of the information is subject to the direction of the commissioner;
62.5 (iii) excluding documents, material, or information reported pursuant to section 60D.19,
62.6subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
62.7commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
62.8in a permanent database after the underlying analysis is completed;
62.9 (iii) (iv) require prompt notice to be given to an insurer whose confidential or protected
62.10nonpublic information in the possession of the NAIC or a third-party consultant designated
62.11by the commissioner pursuant to sections 60D.15 to 60D.29 is subject to a request or
62.12subpoena to the NAIC or a third-party consultant designated by the commissioner for
62.13disclosure or production; and
62.14 (iv) (v) require the NAIC and its affiliates and subsidiaries or a third-party consultant
62.15designated by the commissioner to consent to intervention by an insurer in any judicial or
62.16administrative action in which the NAIC and its affiliates and subsidiaries or a third-party
62.17consultant designated by the commissioner may be required to disclose confidential or
62.18protected nonpublic information about the insurer shared with the NAIC and its affiliates
62.19and subsidiaries or a third-party consultant designated by the commissioner pursuant to
62.20sections 60D.15 to 60D.29.; and
62.21 (vi) for documents, material, or information reported pursuant to section 60D.19,
62.22subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
62.23notification of the identity of the consultant to the applicable insurers.
62.24Sec. 25. Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:
62.25 Subd. 6.Classification protection and use by others.Documents, materials, or other
62.26information in the possession or control of the NAIC or a third-party consultant designated
62.27by the commissioner pursuant to sections 60D.15 to 60D.29 are confidential, protected
62.28nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
62.29admissible in evidence in a private civil action.
62Article 4 Sec. 25.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 63.1 Sec. 26. Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
63.2read:
63.3 Subd. 7.Certain disclosures or publication prohibited.(a) The group capital calculation
63.4and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
63.5liquidity stress test along with the liquidity stress test's results and supporting disclosures
63.6required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
63.7and capital adequacy and group liquidity risks, respectively, and are not intended as a means
63.8to rank insurers or insurance holding company systems generally.
63.9 (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
63.10disseminating, circulating, or placing before the public, or causing directly or indirectly to
63.11be made, published, disseminated, circulated, or placed before the public in a newspaper,
63.12magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
63.13or over any radio, television station, or any electronic means of communication available
63.14to the public, or in any other way as an advertisement, announcement, or statement containing
63.15a representation or statement with regard to the group capital calculation, group capital ratio,
63.16the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
63.17insurer or any insurer group, or of any component derived in the calculation by any insurer,
63.18broker, or other person engaged in any manner in the insurance business is misleading and
63.19is prohibited.
63.20 (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
63.21publication if any materially false statement with respect to the group capital calculation,
63.22resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
63.23insurance group's group capital calculation or resulting group capital ratio, liquidity stress
63.24test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
63.25of any amount to an insurer's or insurance group's liquidity stress test result or supporting
63.26disclosures is published in any written publication and the insurer is able to demonstrate to
63.27the commissioner with substantial proof the statement's falsity or inappropriateness. The
63.28sole purpose of an announcement under this paragraph must be to rebut the materially false
63.29statement.
63.30Sec. 27. Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:
63.31 Subd. 2.Voting of securities; when prohibited.No security that is the subject of any
63.32agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
63.33contravention of the provisions of this chapter or of any rule or order issued by the
63.34commissioner may be voted at any shareholder's meeting, or may be counted for quorum
63Article 4 Sec. 27.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 64.1purposes, and any action of shareholders requiring the affirmative vote of a percentage of
64.2shares may be taken as though the securities were not issued and outstanding. No action
64.3taken at the meeting shall be invalidated by the voting of the securities, unless the action
64.4would materially affect control of the insurer or unless the courts of this state have so
64.5ordered. If an insurer or the commissioner has reason to believe that any security of the
64.6insurer has been or is about to be acquired in contravention of the provisions of this chapter
64.7or of any rule or order issued by the commissioner, the insurer or the commissioner may
64.8apply to the district court for the county in which the insurer has its principal place of
64.9business to enjoin any offer, request, invitation, agreement, or acquisition made in
64.10contravention of section 60D.16 60D.17 or any rule or order issued by the commissioner
64.11to enjoin the voting of any security so acquired, to void any vote of the security already cast
64.12at any meeting of shareholders and for other equitable relief as the nature of the case and
64.13the interest of the insurer's policyholders or the public requires.
64.14Sec. 28. Minnesota Statutes 2024, section 60D.25, is amended to read:
64.15 60D.25 RECEIVERSHIP.
64.16 Whenever it appears to the commissioner that any person has committed a violation of
64.17this chapter that so impairs the financial condition of a domestic insurer as to threaten
64.18insolvency or make the further transaction of business by it hazardous to its policyholders,
64.19creditors, shareholders, or the public, then the commissioner may proceed as provided in
64.20chapter 60B to take possessions of the property of the domestic insurer and to conduct the
64.21business of that the domestic insurer.
64.22Sec. 29. Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
64.23to read:
64.24 Subd. 3.Exception.Notwithstanding subdivision 1, health maintenance organizations
64.25are not subject to oversight under this section with respect to section 60D.20, subdivision
64.261, paragraphs (a), clauses (7) to (9), and (f).
64.27Sec. 30. Minnesota Statutes 2024, section 65A.01, subdivision 3c, is amended to read:
64.28 Subd. 3c.Time requirements.(a) In the event of a policy less than 60 days old that is
64.29declined, or a policy that it is being canceled for nonpayment of premium, the notice must
64.30be mailed to the insured at least 20 30 days before the effective cancellation date. If a policy
64.31is being declined or canceled for underwriting considerations, the insured must be informed
64.32of the source from which the information was received.
64Article 4 Sec. 30.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 65.1 (b) In the event of a midterm cancellation, for reasons listed in subdivision 3a, or
65.2according to policy provisions, notice must be mailed to the insured at least 30 days before
65.3the effective cancellation date.
65.4 (c) In the event of a nonrenewal, notice must be mailed to the insured at least 60 days
65.5before the effective date of nonrenewal, containing the specific underwriting or other reason
65.6for the indicated actions.
65.7 (d) This subdivision does not apply to commercial policies regulated under sections
65.860A.36 and 60A.37.
65.9 Sec. 31. Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
65.10read:
65.11 Subd. 42.Availability of current policy.After an original policy of automobile insurance
65.12under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
65.13subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
65.14first named insured within 21 days of the date a request for the current policy is received.
65.15The copy may be delivered in paper form, electronically, or via a website link. An insurer
65.16is required to provide a current policy in response to a request under this subdivision once
65.17per policy period.
65.18Sec. 32. [168A.1502] INSURER APPLICATION FOR TITLE.
65.19 (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
65.20vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
65.21insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
65.22to the commissioner for a certificate of title as provided in this section. This section only
65.23applies to vehicles with a title issued by this state.
65.24 (b) At least 15 days prior to applying for a certificate of title under this section, the
65.25insurer or a designated agent must notify the owner and any lienholders of record of the
65.26insurer's intent to apply for a title. The notice must be sent to the last known address of the
65.27owner and any lienholders by certified mail or by a commercial delivery service that provides
65.28evidence of delivery.
65.29 (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
65.30the insurer may apply for a certificate of title from the commissioner. The application must
65.31attest that the insurer or a designated agent:
65.32 (1) paid the claim;
65Article 4 Sec. 32.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 66.1 (2) requested the title or other necessary transfer documents from the owner; and
66.2 (3) provided notice to the owner and any lienholders as required under paragraph (b).
66.3If the insurer or a designated agent does not attest to completing the requirements under
66.4clauses (1) to (3), the commissioner must reject the application.
66.5 (d) Notwithstanding any outstanding liens, upon proper application and payment of
66.6applicable fees, the commissioner must issue a certificate of title, salvage title, or prior
66.7salvage title in the name of the insurer. Issuance of a certificate of title, salvage title, or prior
66.8salvage title extinguishes all existing liens against the vehicle. If the vehicle is sold, the
66.9insurer or a designated agent must assign the title to the buyer and the vehicle is transferred
66.10without any liens.
66.11Sec. 33. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
66.12CLAIM.
66.13 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
66.14company" or "auction company" means a business, organization, or individual that sells
66.15salvage vehicles on behalf of insurers.
66.16 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
66.17business in Minnesota requests an auction company to take possession of a salvage vehicle
66.18that is subject to an insurance claim and the insurance company does not subsequently take
66.19ownership of the vehicle, the insurance company may direct the auction company to release
66.20the vehicle to the owner or lienholder.
66.21 (b) The insurance company must provide the auction company notice, by commercial
66.22delivery service, email, or a proprietary electronic system accessible by both the insurance
66.23company and the auction company, authorizing the auction company to release the vehicle
66.24to the vehicle's owner or lienholder.
66.25 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
66.26company, the auction company must send two notices a minimum of 14 days apart to the
66.27owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
66.28from the auction company within 30 days of the date the first notice was sent. Each notice
66.29must include an invoice for any outstanding charges owed to the auction company that must
66.30be paid before the vehicle may be recovered.
66.31 (b) Notice under this subdivision must be sent to the address of the owner and any
66.32lienholder on record with the commissioner by certified mail or a commercially available
66.33delivery service that provides proof of delivery.
66Article 4 Sec. 33.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 67.1 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
67.2the vehicle within 30 days of the date on which the first notice was sent under subdivision
67.33, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
67.4assigned to the auction company, and (3) without surrendering the certificate of title, the
67.5auction company may request, on a form provided by the commissioner, that the
67.6commissioner issue a certificate of title that is free of liens.
67.7 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
67.8by the insurance company required under subdivision 2, and (2) evidence of delivery of the
67.9notices sent to the owner and any lienholders required under subdivision 3 or evidence that
67.10the notices were undeliverable.
67.11 (c) Notwithstanding any outstanding liens against the vehicle, upon proper application
67.12and receipt of any fees charged under section 168A.29, the commissioner must issue a
67.13certificate of title that is free of liens and bears a salvage or prior salvage brand to the auction
67.14company in possession of the vehicle.
67.15Sec. 34. Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:
67.16 Subd. 2.Contracts of $100,000 or more.Notwithstanding any law to the contrary,
67.17except as stated in section 58.137, and with respect to contracts a conventional loan or
67.18contract for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
67.19interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
67.20sale, or advance made under a written contract, signed by the debtor, for the extension of
67.21credit to the debtor in the amount of $100,000 or more, or any written extension and other
67.22written modification of the written contract. The written contract, written extension, and
67.23written modification are exempt from the other provisions of this chapter.
67.24 ARTICLE 5
67.25 MISCELLANEOUS COMMERCE POLICY
67.26Section 1. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
67.27 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
67.28subdivision have the meanings given.
67.29 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
67.30 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
67.31(10).
67.32 (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
67Article 5 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 68.1 (e) "Private data on individuals" has the meaning given in section 13.02, subdivision
68.212.
68.3 (f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
68.4 Subd. 2.Establishment.A common interest community ombudsperson position is
68.5established within the Department of Commerce to assist unit owners in enforcing their
68.6rights and to facilitate resolution of disputes between unit owners and associations. The
68.7ombudsperson is appointed by the governor, serves in the unclassified service, and may be
68.8removed only for just cause.
68.9 Subd. 3.Qualifications.The ombudsperson must be selected without regard to political
68.10affiliation, must be qualified and experienced to perform the duties of the office, and must
68.11be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
68.12be employed by a business entity that provides management or consulting services to an
68.13association, or otherwise be affiliated with an association or management company. A
68.14person is prohibited from serving as ombudsperson while holding another public office.
68.15 Subd. 4.Duties.(a) The ombudsperson must assist unit owners, their tenants, and
68.16associations to understand and enforce their rights under chapter 515B and the governing
68.17documents of the specific unit owner's association, including by:
68.18 (1) creating and publishing plain language explanations of common provisions of common
68.19interest community declarations and bylaws; and
68.20 (2) publishing materials and providing resources and referrals related to the rights and
68.21responsibilities of unit owners and associations.
68.22 (b) Upon the request of a unit owner or association, the ombudsperson must provide
68.23dispute resolution services, including acting as a mediator, in disputes between a unit owner
68.24and an association concerning chapter 515B or the governing documents of the common
68.25interest community, except where:
68.26 (1) there is a complaint based on the same dispute pending in a judicial or administrative
68.27proceeding, or if there is a harassment or restraining order involved; or
68.28 (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
68.29or another alternative dispute resolution process.
68.30 (c) The ombudsperson may provide dispute resolution services for disputes between the
68.31tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
68.32resolution process.
68Article 5 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 69.1 (d) The ombudsperson must compile and analyze complaints and inquiries involving
69.2common interest communities to identify issues and trends. When assisting a unit owner in
69.3enforcing their rights under this section, the ombudsperson may inform them of the existence
69.4of other complaints from other unit owners in the same common interest community, subject
69.5to subdivision 7.
69.6 (e) The ombudsperson must maintain a website containing, at a minimum:
69.7 (1) the text of chapter 515B and any other relevant statutes or rules;
69.8 (2) information regarding the services provided by the Office of the Common Interest
69.9Community Ombudsperson, including assistance with dispute resolution;
69.10 (3) information regarding alternative dispute resolution methods and programs; and
69.11 (4) any other information that the ombudsperson determines is useful to unit owners,
69.12associations, common interest community boards of directors, and common interest
69.13community property management companies.
69.14 (f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
69.15provide reports and recommendations to the legislative committees with jurisdiction over
69.16common interest communities.
69.17 (g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
69.18times, enter and view premises within the control of the common interest community.
69.19 Subd. 5.Powers limited.The ombudsperson and the commissioner are prohibited from
69.20rendering a formal legal opinion regarding a dispute between a unit owner and an association.
69.21The ombudsperson and commissioner are prohibited from making a formal determination
69.22or issuing an order regarding disputes between a unit owner and an association. Nothing in
69.23this subdivision limits the ability of the commissioner to execute duties or powers under
69.24any other law.
69.25 Subd. 6.Cooperation.Upon request, unit owners and associations must participate in
69.26the dispute resolution process and make good faith efforts to resolve disputes under this
69.27section.
69.28 Subd. 7.Data.Data collected, created, or maintained by the office of the ombudsperson
69.29under this section are private data on individuals or nonpublic data.
69.30 Subd. 8.Landlord and tenant law.Nothing in this section modifies, supersedes, limits,
69.31or expands the rights and duties of landlords and tenants established under chapter 504B or
69.32any other law.
69Article 5 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 70.1 EFFECTIVE DATE.This section is effective July 1, 2026.
70.2 Sec. 2. Minnesota Statutes 2024, section 80E.12, is amended to read:
70.3 80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
70.4FACTORY BRANCHES.
70.5 It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
70.6motor vehicle dealer to do any of the following:
70.7 (a) order or accept delivery of any new motor vehicle, part or accessory thereof,
70.8equipment, or any other commodity not required by law which has not been voluntarily
70.9ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
70.10supersede reasonable provisions of the franchise requiring the dealer to market a
70.11representative line of the new motor vehicles the manufacturer or distributor is publicly
70.12advertising;
70.13 (b) order or accept delivery of any new motor vehicle, part or accessory thereof,
70.14equipment, or any other commodity not required by law in order for the dealer to obtain
70.15delivery of any other motor vehicle ordered by the dealer;
70.16 (c) order or accept delivery of any new motor vehicle with special features, accessories,
70.17or equipment not included in the list price of the motor vehicles as publicly advertised by
70.18the manufacturer or distributor;
70.19 (d) participate monetarily in an advertising campaign or contest, or to purchase any
70.20promotional materials, showroom, or other display decorations or materials at the expense
70.21of the new motor vehicle dealer;
70.22 (e) enter into any agreement with the manufacturer or to do any other act prejudicial to
70.23the new motor vehicle dealer by threatening to cancel a franchise or any contractual
70.24agreement existing between the dealer and the manufacturer. Notice in good faith to any
70.25dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
70.26a violation of sections 80E.01 to 80E.17;
70.27 (f) change the capital structure of the new motor vehicle dealer or the means by or
70.28through which the dealer finances the operation of the dealership; provided, that the new
70.29motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
70.30dealer; and also provided, that no change in the capital structure shall cause a change in the
70.31principal management or have the effect of a sale of the franchise without the consent of
70.32the manufacturer or distributor as provided in section 80E.13, paragraph (j);
70Article 5 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 71.1 (g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
71.2from changing the executive management control of the new motor vehicle dealer unless
71.3the franchisor proves that the change of executive management will result in executive
71.4management control by a person who is not of good moral character or who does not meet
71.5the franchisor's existing reasonable capital standards and, with consideration given to the
71.6volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
71.7business experience standards in the market area; provided, that where the manufacturer,
71.8distributor, or factory branch rejects a proposed change in executive management control,
71.9the manufacturer, distributor, or factory branch shall give written notice of its reasons to
71.10the dealer;
71.11 (h) refrain from participation in the management of, investment in, or the acquisition
71.12of, any other line of new motor vehicle or related products or establishment of another make
71.13or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
71.14provided, however, that this clause does not apply unless the new motor vehicle dealer
71.15maintains a reasonable line of credit for each make or line of new motor vehicle, and that
71.16the new motor vehicle dealer remains in substantial compliance with the terms and conditions
71.17of the franchise and with any reasonable facilities requirements of the manufacturer and
71.18that the acquisition or addition is not unreasonable in light of all existing circumstances;
71.19provided further that if a manufacturer determines to deny a dealer's request for a change
71.20described in this paragraph, such denial must be in writing, must offer an analysis of the
71.21grounds for the denial addressing the criteria contained in this paragraph, and must be
71.22delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
71.23the completed application or documents customarily used by the manufacturer for dealer
71.24actions described in this paragraph. If a denial that meets the requirements of this paragraph
71.25is not sent within this period, the manufacturer shall be deemed to have given its consent
71.26to the proposed change.
71.27For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
71.28subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
71.29establish or maintain exclusive facilities for the manufacturer of a line make unless
71.30determined to be reasonable in light of all existing circumstances or the dealer and the
71.31manufacturer voluntarily agree to such a requirement and separate and adequate consideration
71.32was offered and accepted;
71.33 (i) during the course of the agreement, change the location of the new motor vehicle
71.34dealership or make any substantial alterations to the dealership premises during the course
71.35of the agreement, when to do so would be unreasonable or if the manufacturer fails to
71Article 5 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 72.1provide the dealer 180 days' prior written notice of a required change in location or substantial
72.2premises alteration; or
72.3 (j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
72.4a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
72.5any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
72.6between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
72.7be referred to any person or tribunal other than the duly constituted courts of this state or
72.8the United States, if the referral would be binding upon the new motor vehicle dealer.; or
72.9 (k) refrain from participation in an auto show described in section 168.27, subdivision
72.1010a.
72.11 EFFECTIVE DATE.This section is effective the day following final enactment.
72.12Sec. 3. Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
72.13read:
72.14 Subd. 10a.Participation in auto shows.(a) A new motor vehicle dealer may participate
72.15in an auto show outside the county where the dealer maintains the dealer's licensed location
72.16to sell new vehicles without obtaining an additional license if:
72.17 (1) the dealer participates in an auto show that takes place in a county other than the
72.18county where the dealer maintains a licensed location not more than four times during any
72.19calendar year;
72.20 (2) the auto show is not held at a licensed location of any participating dealer;
72.21 (3) the auto show is of a duration of no more than 12 consecutive days;
72.22 (4) the auto show expressly prohibits:
72.23 (i) the sale or lease of vehicles at the show;
72.24 (ii) labeling or marking vehicles as "For Sale" or "Sold";
72.25 (iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
72.26label;
72.27 (iv) using printed posters, cards, and other printed materials that contain special dealership
72.28pricing; and
72.29 (v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
72.30 (b) The auto show may permit:
72Article 5 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 73.1 (1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
73.2and factory-approved rebates;
73.3 (2) exhibitor staff to make appointments for potential customers to visit the dealership,
73.4collect names of customer leads for later contact, and discuss the suggested retail price of
73.5a vehicle and the availability of particular lines of vehicles; and
73.6 (3) test rides or test drives of new vehicles, but only under a program conducted by the
73.7auto show.
73.8 EFFECTIVE DATE.This section is effective the day following final enactment.
73.9 Sec. 4. Minnesota Statutes 2024, section 216B.40, is amended to read:
73.10 216B.40 EXCLUSIVE SERVICE RIGHT; SERVICE EXTENSION.
73.11 Except as provided in sections 216B.42 and, 216B.421, and 216B.422, each electric
73.12utility shall have the exclusive right to provide electric service at retail to each and every
73.13present and future customer in its assigned service area and no electric utility shall render
73.14or extend electric service at retail within the assigned service area of another electric utility
73.15unless the electric utility consents thereto in writing; provided that any electric utility may
73.16extend its facilities through the assigned service area of another electric utility if the extension
73.17is necessary to facilitate the electric utility connecting its facilities or customers within its
73.18own assigned service area.
73.19Sec. 5. [216B.422] ELECTRICITY SALES FOR CHARGING ELECTRIC
73.20VEHICLES.
73.21 A retail seller of electricity used to recharge a battery that powers an electric vehicle, as
73.22defined in section 169.011, subdivision 26a, and that is not otherwise a public utility under
73.23this chapter, is not in violation of section 216B.40 if the electricity the retailer sells was
73.24provided by the utility serving the location of the charging station.
73.25Sec. 6. Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision to
73.26read:
73.27 Subd. 9.Administrative costs for discontinuation of telecommunication services.The
73.28commission may assess fees for the actual commission costs to administer the discontinuation
73.29of telecommunication services under section 237.181. The money received from the
73.30assessment must be deposited into an account in the special revenue fund and all money
73.31deposited is appropriated to the commission for the purposes specified under this subdivision.
73Article 5 Sec. 6.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 74.1The commission may initially assess for estimated costs under section 237.181, then must
74.2adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
74.3made under this subdivision is not subject to the cap on assessments provided in subdivision
74.43 or any other law.
74.5 EFFECTIVE DATE.This section is effective July 1, 2026.
74.6 Sec. 7. [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
74.7ALTERNATIVES.
74.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
74.9the meanings given.
74.10 (b) "Commission" means the Public Utilities Commission.
74.11 (c) "Voice over internet protocol" or "VOIP" has the meaning given in section 237.025.
74.12 (d) "Alternative providers" means one or more providers the Federal Communications
74.13Commission has identified through Broadband Data Collection, location fabric data, or a
74.14successor data program as having a provider offering wireline broadband access service
74.15through fiber optic cable to the home capable of carrying VOIP of at least 25 megabits per
74.16second download speed and three megabit per second upload speed and offers VOIP services
74.17at a rate no more than 120 percent of the current rate for local flat-rated voice service. Other
74.18Federal Communications Commission-approved adequate replacements shall be considered
74.19by the commission upon request of the telephone company or telecommunications carrier
74.20if the telephone company or telecommunications carrier fulfills the required obligations set
74.21forth in this section.
74.22 Subd. 2.Customer transition plans.(a) A telephone company or telecommunications
74.23carrier may submit a petition to the commission for approval of a customer transition plan
74.24to discontinue telecommunications service in an area where the telephone company or
74.25telecommunications carrier has shown that customers in the affected area have access to
74.26one or more providers for the telecommunications service provided by the telephone company
74.27or telecommunications carrier.
74.28 (b) The proposed customer transition plan must:
74.29 (1) clearly identify the area and affected customers;
74.30 (2) clearly identify the alternative providers available to customers in the affected area;
74.31 (3) provide for technical assistance to affected customers who request assistance with
74.32the transition to an alternate provider;
74Article 5 Sec. 7.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 75.1 (4) draft consumer dispute forms for commission approval;
75.2 (5) describe the public education meeting plans for affected customers when required
75.3by the commission; and
75.4 (6) provide onetime connection fees and device costs for households eligible for credit
75.5as defined in section 237.70, subdivision 4a.
75.6 Subd. 3.Commission process.The commission shall provide for notice and comment
75.7on the petition for a customer transition plan. The commission shall approve, modify, or
75.8reject a petition filed under this section. The commission shall only approve a plan under
75.9this section if it finds that the telephone company or telecommunications carrier:
75.10 (1) has met its burden of demonstrating to the commission that customers in the affected
75.11area have at least one alternative provider available to those customers;
75.12 (2) has demonstrated that it will put sufficient resources into assisting customers to
75.13transition to an alternate provider, including providing onetime connection fees and device
75.14costs for households eligible for credit as defined in section 237.70, subdivision 4a; and
75.15 (3) has held a public meeting in the affected area as required by the commission and
75.16provided written notice of the meeting to customers 60 days in advance.
75.17 Subd. 4.Obligations upon approval.Upon approval of a petition for a customer
75.18transition plan under this section, the telephone company or telecommunications carrier
75.19that proposed the petition must continue to serve an affected customer until the telephone
75.20company or telecommunications carrier completes the required actions in subdivision 2 and
75.21any disputes brought by the customer before the commission are resolved.
75.22 Subd. 5.Dispute resolution.The commission must resolve any dispute over whether a
75.23location has service available at the rates described in subdivision 1 on an expedited basis
75.24pursuant to section 237.61, prior to the date services will be discontinued. Such disputes
75.25must be submitted at least 90 days prior to the date of service discontinuance and resolved
75.2615 days prior to the date of service discontinuation.
75.27 Subd. 6.Reinstatement of service.(a) The commission may reinstate existing obligations
75.28on the telephone company or telecommunications carrier to provide services to customers
75.29affected by this section:
75.30 (1) on the commission's own initiative; or
75.31 (2) in response to a request for agency action.
75.32 (b) Before acting under this subdivision, the commission must:
75Article 5 Sec. 7.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 76.1 (1) provide notice and conduct a hearing; and
76.2 (2) determine that reinstating any existing obligation to serve is necessary because
76.3customers lack access to one or more providers.
76.4 (c) The telephone company or telecommunications carrier that would be affected by
76.5modification or reinstatement of service shall bear the burden of proof in a proceeding under
76.6this subdivision.
76.7 Subd. 7.Local exchange carrier.Nothing in this section relieves an incumbent local
76.8exchange carrier as defined under United States Code, title 47, section 251(h)(1), of its
76.9existing interconnection obligations or terminates existing interconnection agreements in a
76.10manner other than according to their terms or other existing law.
76.11 Subd. 8.No relinquishment of ETC status.A petition approved under this section
76.12shall not be deemed to be a relinquishment of any eligible telecommunications carrier
76.13designation that has been granted to the petitioning telephone company or
76.14telecommunications carrier under federal and state law.
76.15 EFFECTIVE DATE.This section is effective July 1, 2026.
76.16Sec. 8. [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT.
76.17 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
76.18the meanings given.
76.19 (b) "Electric vehicle supply equipment" or "EVSE" means a conductor, including an
76.20ungrounded, grounded, and equipment grounding conductor, electric vehicle connector,
76.21attachment plug, and other fitting, device, power outlet, or apparatus installed specifically
76.22to measure, deliver, and compute the price of electrical energy delivered to an electric
76.23vehicle.
76.24 (c) "Electricity sold as vehicle fuel" means electrical energy transferred to or stored
76.25onboard an electric vehicle primarily to propel the electric vehicle.
76.26 (d) "Fixed service" means a service that continuously provides the nominal power that
76.27is possible with the equipment as installed.
76.28 (e) "Nominal power" means the intended, named, or stated, as opposed to the actual,
76.29rate of electrical energy transfer.
76.30 (f) "Variable service" means a service that may be controlled, resulting in periods of
76.31reduced or interrupted transfer of electrical energy.
76Article 5 Sec. 8.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 77.1 Subd. 2.Inspection; fees.The director must inspect a retail EVSE annually or as often
77.2as is possible given budgetary and staffing limitations. The director must charge an EVSE
77.3owner a $100 fee to inspect and test each EVSE charging port.
77.4 Subd. 3.EVSE program account; appropriation.An EVSE program account is created
77.5in the special revenue fund of the state treasury. The commissioner must credit to the account
77.6fees collected from inspections under this section and appropriations and transfers made to
77.7the account. Earnings, including interest, dividends, and any other earnings arising from
77.8assets of the account, must be credited to the account. Money in the account is appropriated
77.9to the commissioner to pay for operations of the EVSE program.
77.10 Subd. 4.Method of sale.(a) Electrical energy kept, offered, or exposed for sale and
77.11sold at retail as a vehicle fuel must be expressed in kilowatt-hour units.
77.12 (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold,
77.13a fee may be assessed for other services. A fee assessed for another service may be a fixed
77.14fee or may be based on time measurement.
77.15 Subd. 5.Labeling.(a) A computing EVSE must display the unit price in whole cents
77.16or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is unlimited
77.17or free of charge, the computing EVSE must clearly indicate that the electrical energy is
77.18unlimited or free of charge in lieu of the unit price.
77.19 (b) For a fixed service application, the following information must be conspicuously
77.20displayed or posted on the face of the device:
77.21 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
77.22 (2) the type of electrical energy transfer.
77.23 (c) If a fee is assessed for other services in direct connection with fueling the vehicle,
77.24including but not limited to a fee based on time measurement or a fixed fee, the additional
77.25fee must be displayed.
77.26 (d) An EVSE must be labeled in a manner that complies with Federal Trade
77.27Commissioner labeling requirements for alternative fuels and alternative fueled vehicles,
77.28Code of Federal Regulations, title 16, part 309.
77.29 (e) An EVSE must be listed and labeled in a manner that complies with the National
77.30Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems.
77.31 Subd. 6.Advertising; sign prices.(a) When a sign or device is used to advertise the
77.32price of electricity to fuel a vehicle, the price for electrical energy must be expressed in
77Article 5 Sec. 8.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 78.1price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is
78.2unlimited or free of charge, the advertising or sign must clearly indicate that the electrical
78.3energy is unlimited or free of charge in lieu of the unit price.
78.4 (b) If more than one electrical energy unit price may apply over the duration of a single
78.5transaction or sale to the general public, the terms and conditions that determine each unit
78.6price and the times each unit price apply must be clearly displayed.
78.7 (c) For a fixed service application, the following information must be conspicuously
78.8displayed or posted:
78.9 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
78.10 (2) the type of electrical energy transfer.
78.11 (d) For a variable service application, the following information must be conspicuously
78.12displayed or posted:
78.13 (1) the type of delivery;
78.14 (2) the minimum and maximum power transfer that may occur during a transaction,
78.15including whether service may be reduced to zero;
78.16 (3) the conditions under which a variation in electrical energy transfer occurs; and
78.17 (4) the type of electrical energy transfer.
78.18 (e) If a fee is assessed for other services in direct connection with the fueling of the
78.19vehicle, including but not limited to a fee based on time measurement or a fixed fee, the
78.20additional fee must be included on all street signs or other advertising.
78.21Sec. 9. [325F.079] SALE OF NITROUS OXIDE.
78.22 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
78.23the meanings given.
78.24 (b) "Nitrous oxide" means a canister containing nitrous oxide that is sold by a retailer.
78.25 (c) "Retailer" means a person, located within Minnesota or elsewhere, engaged in the
78.26business of selling or offering for sale nitrous oxide to a consumer in Minnesota.
78.27 Subd. 2.Prohibition.A retailer is prohibited from selling or offering for sale nitrous
78.28oxide to a consumer in Minnesota.
78.29 Subd. 3.Exceptions.Nitrous oxide may be purchased for the following reasons:
78Article 5 Sec. 9.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 79.1 (1) care or treatment of a disease, condition, or injury by a licensed medical or dental
79.2practitioner;
79.3 (2) possession and use by a manufacturer as part of a manufacturing process or industrial
79.4operation;
79.5 (3) possession, use, or sale as a propellant in food preparation for restaurant, food service,
79.6or houseware products; or
79.7 (4) possession, use, or sale of nitrous oxide for automative purposes.
79.8 Subd. 4.Violation.A person who violates this section is guilty of a misdemeanor.
79.9 Sec. 10. [325F.677] AVAILABILITY OF WATER AT PLACES OF
79.10ENTERTAINMENT.
79.11 Subdivision 1.Definition.For purposes of this section, "place of entertainment" has the
79.12meaning given in section 325F.676, subdivision 1, paragraph (h).
79.13 Subd. 2.Available water requirement.When occupancy exceeds 100 attendees and
79.14where an attendee must have a ticket in order to access the place of entertainment, a place
79.15of entertainment must provide attendees with access to potable water by:
79.16 (1) providing water at no cost to the attendees;
79.17 (2) allowing attendees to bring factory-sealed bottled water into the place of
79.18entertainment; or
79.19 (3) allowing attendees to bring an empty water bottle to the place of entertainment and
79.20providing attendees with access to potable water to fill the bottle. A place of entertainment
79.21may prohibit certain types and sizes of water bottles in order to protect the safety of others.
79.22 Subd. 3.Exceptions.An exhibit, gallery, or presentation space where beverages are
79.23prohibited is not required to allow water into the exhibit, gallery, or presentation space if
79.24water is available at no cost in an accessible location outside of the museum exhibit gallery
79.25or presentation space.
79.26Sec. 11. Minnesota Statutes 2024, section 325G.24, subdivision 2, is amended to read:
79.27 Subd. 2.Right of member unilateral termination.(a) Any person who has elected to
79.28become a member of a club may unilaterally terminate such membership, in the person's
79.29exclusive discretion, by giving notice of termination at any time.
79Article 5 Sec. 11.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 80.1 (b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
80.2and postage prepaid.
80.3 (c) A club must not impose a termination fee or any other liability on the member for
80.4termination under this subdivision.
80.5 (d) Termination under this subdivision is effective at the end of the membership term
80.6in which the member provides the notice of termination. If membership is at-will without
80.7a defined membership term, then termination under this subdivision is effective immediately,
80.8unless no later than 30 days after the date of a verified consumer's notice of termination. If
80.9the member indicates a future effective date of termination, in which event beyond those
80.10set forth herein, the date indicated by the member is the effective date of termination.
80.11 (e) If a member provides notice of termination at any time before midnight of the third
80.12business day following the date on which membership was attained, the club must treat the
80.13notice as a notice of cancellation under subdivision 1, unless the member specifically
80.14provides for a future termination effective date.
80.15 EFFECTIVE DATE.This section is effective July 1, 2025, and applies to contracts
80.16entered into, modified, or renewed on or after that date.
80.17Sec. 12. [515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
80.18 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
80.19subdivision have the meanings given.
80.20 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
80.21 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
80.22(10).
80.23 (d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
80.24 (e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
80.25 (f) "Unit" has the meaning given in section 515B.1-103, clause (35).
80.26 Subd. 2.Establishment.The Department of Commerce must establish a register that
80.27contains the information required under subdivision 3 regarding each residential common
80.28interest community or similar association governed by this chapter, operating within
80.29Minnesota.
80Article 5 Sec. 12.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 81.1 Subd. 3.Registration required.(a) A residential common interest community or similar
81.2association governed by this chapter must annually register under this section if the common
81.3interest community or similar association owns any number of units in Minnesota.
81.4 (b) A residential common interest community or similar association governed by this
81.5chapter must provide the following information to the department when registering:
81.6 (1) the common interest community or association's legal name;
81.7 (2) the common interest community or association's federal employer identification
81.8number;
81.9 (3) the common interest community or association's telephone number, email address,
81.10and mailing and physical address;
81.11 (4) the current board officers' full names, titles, email addresses, and other contact
81.12information;
81.13 (5) a copy of the common interest community or association's governing documents,
81.14including but not limited to declarations, bylaws, rules, and any amendments;
81.15 (6) the total number of parcels in the common interest community or association; and
81.16 (7) the total amount of revenues and expenses from the common interest community or
81.17association's annual budget.
81.18 (c) For residential common interest communities or associations governed by this chapter
81.19that are under the control of a master developer, the register must include:
81.20 (1) the master developer's legal name;
81.21 (2) the master developer's telephone number, email address, and mailing and physical
81.22address;
81.23 (3) the master developer's federal employer identification number;
81.24 (4) the total number of parcels owned by the master developer on the date of reporting;
81.25 (5) the master developer's master declaration required under section 515B.2-121;
81.26 (6) the master developer's anticipated timeline to transfer control to the owners; and
81.27 (7) how the master developer transfers control to the owners.
81.28 (d) Residential common interest communities or associations governed by this chapter
81.29that contract with a property management company must also provide the following
81.30information:
81Article 5 Sec. 12.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 82.1 (1) the property management company's legal name;
82.2 (2) the property management company's telephone number, email address, and mailing
82.3and physical address; and
82.4 (3) a brief description of the property management company's legal obligations under
82.5the terms of the contract.
82.6 Subd. 4.Registration fee.Each residential common interest community or association
82.7must pay an annual registration fee of $55 to support the register established in subdivision
82.82 and the common interest community ombudsperson under section 45.0137.
82.9 Subd. 5.Data classification.Data collected, created, received, or maintained pursuant
82.10to this section is private data on individuals, as defined in section 13.02, subdivision 12.
82.11 Subd. 6.Notice requirement.The Department of Commerce must provide notice to a
82.12common interest community or association that fails to register. The common interest
82.13community or association must register as provided under this section within 60 days after
82.14receiving the notice to register.
82.15 EFFECTIVE DATE.This section is effective January 1, 2026.
82.16 ARTICLE 6
82.17 CANNABIS FINANCE POLICY
82.18Section 1. Minnesota Statutes 2024, section 342.17, is amended to read:
82.19 342.17 SOCIAL EQUITY APPLICANTS.
82.20 (a) An applicant qualifies as a social equity applicant if the applicant:
82.21 (1) was convicted of, received a stay of adjudication under chapter 609 for, or was
82.22adjudicated delinquent under chapter 260B of an offense involving the possession or sale
82.23of cannabis or marijuana prior to May 1, 2023;
82.24 (2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
82.25involving the possession or sale of cannabis or marijuana prior to May 1, 2023;
82.26 (3) was a dependent of an individual who was convicted of an offense involving the
82.27possession or sale of cannabis or marijuana prior to May 1, 2023;
82.28 (4) is a military veteran, including a service-disabled veteran, current or former member
82.29of the national guard;
82.30 (5) is a military veteran or current or former member of the national guard who lost
82.31honorable status due to an offense involving the possession or sale of cannabis or marijuana;
82Article 6 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 83.1 (6) has been a resident for the last five years of one or more subareas, such as census
83.2tracts or neighborhoods:
83.3 (i) that experienced a disproportionately large amount of cannabis enforcement as
83.4determined by the study conducted by the office pursuant to section 342.04, paragraph (b),
83.5or another report based on federal or state data on arrests or convictions;
83.6 (ii) where the poverty rate was 20 percent or more;
83.7 (iii) where the median family income did not exceed 80 percent of the statewide median
83.8family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the
83.9statewide median family income or 80 percent of the median family income for that
83.10metropolitan area;
83.11 (iv) where at least 20 percent of the households receive assistance through the
83.12Supplemental Nutrition Assistance Program; or
83.13 (v) where the population has a high level of vulnerability according to the Centers for
83.14Disease Control and Prevention and Agency for Toxic Substances and Disease Registry
83.15(CDC/ATSDR) Social Vulnerability Index; or
83.16 (7) has participated in the business operation of a farm for at least three years and
83.17currently provides the majority of the day-to-day physical labor and management of a farm
83.18that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year.
83.19 (b) The qualifications described in paragraph (a) apply to each individual applicant or,
83.20in the case of a business entity, apply to at least 65 percent of the controlling ownership of
83.21the business entity.
83.22Sec. 2. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
83.23read:
83.24 Subd. 2a.Cannabis testing facility licenses.(a) Pending an applicant's accreditation
83.25by a laboratory accrediting organization approved by the office, the office may issue or
83.26renew a cannabis testing facility license for an applicant that is a person, cooperative, or
83.27business if the applicant:
83.28 (1) submits documentation to the office demonstrating that the applicant has a signed
83.29contract with a laboratory accreditation organization approved by the office, has scheduled
83.30an audit, and is making progress toward accreditation by a laboratory accrediting organization
83.31approved by the office according to the standards of the most recent edition of ISO/IEC
83.3217025: General Requirements for the Competence of Testing and Calibration Laboratories;
83Article 6 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 84.1 (2) passes a final site inspection conducted by the office; and
84.2 (3) meets all other licensing requirements according to chapter 342 and Minnesota Rules.
84.3 (b) After receiving a license under this section, a license holder may operate a cannabis
84.4testing facility up to one year with pending accreditation status.
84.5 (c) If, after one year, a license holder continues to have pending accreditation status, the
84.6license holder may apply for a onetime extension to continue operations for up to six months.
84.7The office may grant an extension under this paragraph to a license holder if the license
84.8holder:
84.9 (1) passes a follow-up site inspection conducted by the office;
84.10 (2) submits an initial audit report from a laboratory accrediting organization approved
84.11by the office; and
84.12 (3) submits any additional information requested by the office.
84.13 (d) The office may revoke a cannabis testing facility license held by a license holder
84.14with pending accreditation status if the office determines or has reason to believe that the
84.15license holder:
84.16 (1) is not making progress toward accreditation; or
84.17 (2) has violated a cannabis testing requirement, an ownership requirement, or an
84.18operational requirement in chapter 342 or Minnesota Rules.
84.19 (e) The office must not issue or renew a cannabis testing facility license under this
84.20subdivision for a license holder if the license holder's accreditation has been suspended or
84.21revoked by a laboratory accrediting organization.
84.22Sec. 3. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
84.23read:
84.24 Subd. 2b.Loss of accreditation.(a) A license holder must report loss of accreditation
84.25to the office within 24 hours of receiving notice of the loss of accreditation.
84.26 (b) The office must immediately revoke a license holder's license upon receiving notice
84.27that the license holder has lost accreditation.
84Article 6 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 85.1 ARTICLE 7
85.2 CONSUMER PROTECTION
85.3 Section 1. Minnesota Statutes 2024, section 116.943, subdivision 1, is amended to read:
85.4 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
85.5the meanings given.
85.6 (b) "Adult mattress" means a mattress other than a crib mattress or toddler mattress.
85.7 (c) "Air care product" means a chemically formulated consumer product labeled to
85.8indicate that the purpose of the product is to enhance or condition the indoor environment
85.9by eliminating odors or freshening the air.
85.10 (d) "Automotive maintenance product" means a chemically formulated consumer product
85.11labeled to indicate that the purpose of the product is to maintain the appearance of a motor
85.12vehicle, including products for washing, waxing, polishing, cleaning, or treating the exterior
85.13or interior surfaces of motor vehicles. Automotive maintenance product does not include
85.14automotive paint or paint repair products.
85.15 (e) "Carpet or rug" means a fabric marketed or intended for use as a floor covering.
85.16 (f) "Cleaning product" means a finished product used primarily for domestic, commercial,
85.17or institutional cleaning purposes, including but not limited to an air care product, an
85.18automotive maintenance product, a general cleaning product, or a polish or floor maintenance
85.19product.
85.20 (g) "Commissioner" means the commissioner of the Pollution Control Agency.
85.21 (h) "Cookware" means durable houseware items used to prepare, dispense, or store food,
85.22foodstuffs, or beverages. Cookware includes but is not limited to pots, pans, skillets, grills,
85.23baking sheets, baking molds, trays, bowls, and cooking utensils.
85.24 (i) "Cosmetic" means articles, excluding soap:
85.25 (1) intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise
85.26applied to the human body or any part thereof for the purpose of cleansing, beautifying,
85.27promoting attractiveness, or altering the appearance; and
85.28 (2) intended for use as a component of any such article.
85.29 (j) "Currently unavoidable use" means a use of PFAS that the commissioner has
85.30determined by rule under this section to be essential for health, safety, or the functioning
85.31of society and for which alternatives are not reasonably available.
85Article 7 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 86.1 (k) "Fabric treatment" means a substance applied to fabric to give the fabric one or more
86.2characteristics, including but not limited to stain resistance or water resistance.
86.3 (l) "Intentionally added" means PFAS deliberately added during the manufacture of a
86.4product where the continued presence of PFAS is desired in the final product or one of the
86.5product's components to perform a specific function.
86.6 (m) "Juvenile product" means a product designed or marketed for use by infants and
86.7children under 12 years of age:
86.8 (1) including but not limited to a baby or toddler foam pillow; bassinet; bedside sleeper;
86.9booster seat; changing pad; child restraint system for use in motor vehicles and aircraft;
86.10co-sleeper; crib mattress; highchair; highchair pad; infant bouncer; infant carrier; infant
86.11seat; infant sleep positioner; infant swing; infant travel bed; infant walker; nap cot; nursing
86.12pad; nursing pillow; play mat; playpen; play yard; polyurethane foam mat, pad, or pillow;
86.13portable foam nap mat; portable infant sleeper; portable hook-on chair; soft-sided portable
86.14crib; stroller; and toddler mattress; and
86.15 (2) not including a children's electronic product such as a personal computer, audio and
86.16video equipment, calculator, wireless phone, game console, handheld device incorporating
86.17a video screen, or any associated peripheral such as a mouse, keyboard, power supply unit,
86.18or power cord; or an adult mattress.; and
86.19 (3) not including:
86.20 (i) an off-highway vehicle made for children;
86.21 (ii) an all-terrain vehicle made for children;
86.22 (iii) an off-highway motorcycle made for children;
86.23 (iv) a snowmobile made for children;
86.24 (v) an electric-assisted bicycle made for children; or
86.25 (vi) a replacement part for a vehicle described in items (i) to (v).
86.26 (n) "Manufacturer" means the person that creates or produces a product or whose brand
86.27name is affixed to the product. In the case of a product imported into the United States,
86.28manufacturer includes the importer or first domestic distributor of the product if the person
86.29that manufactured or assembled the product or whose brand name is affixed to the product
86.30does not have a presence in the United States.
86.31 (o) "Medical device" has the meaning given "device" under United States Code, title
86.3221, section 321, subsection (h).
86Article 7 Section 1.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 87.1 (p) "Perfluoroalkyl and polyfluoroalkyl substances" or "PFAS" means a class of
87.2fluorinated organic chemicals containing at least one fully fluorinated carbon atom.
87.3 (q) "Product" means an item manufactured, assembled, packaged, or otherwise prepared
87.4for sale to consumers, including but not limited to its product components, sold or distributed
87.5for personal, residential, commercial, or industrial use, including for use in making other
87.6products.
87.7 (r) "Product component" means an identifiable component of a product, regardless of
87.8whether the manufacturer of the product is the manufacturer of the component.
87.9 (s) "Ski wax" means a lubricant applied to the bottom of snow runners, including but
87.10not limited to skis and snowboards, to improve their grip or glide properties. Ski wax includes
87.11related tuning products.
87.12 (t) "Textile" means an item made in whole or part from a natural or synthetic fiber, yarn,
87.13or fabric. Textile includes but is not limited to leather, cotton, silk, jute, hemp, wool, viscose,
87.14nylon, and polyester.
87.15 (u) "Textile furnishings" means textile goods of a type customarily used in households
87.16and businesses, including but not limited to draperies, floor coverings, furnishings, bedding,
87.17towels, and tablecloths.
87.18 (v) "Upholstered furniture" means an article of furniture that is designed to be used for
87.19sitting, resting, or reclining and that is wholly or partly stuffed or filled with any filling
87.20material.
87.21 EFFECTIVE DATE.This section is effective the day following final enactment.
87.22Sec. 2. Minnesota Statutes 2024, section 116.943, subdivision 5, is amended to read:
87.23 Subd. 5.Prohibitions.(a) Beginning January 1, 2025, a person may not sell, offer for
87.24sale, or distribute for sale in this state the following products if the product contains
87.25intentionally added PFAS:
87.26 (1) carpets or rugs;
87.27 (2) cleaning products;
87.28 (3) cookware;
87.29 (4) cosmetics;
87.30 (5) dental floss;
87.31 (6) fabric treatments;
87Article 7 Sec. 2.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 88.1 (7) juvenile products;
88.2 (8) menstruation products;
88.3 (9) textile furnishings;
88.4 (10) ski wax; or
88.5 (11) upholstered furniture.
88.6 (b) Paragraph (a) does not prohibit the sale, offering for sale, or distribution of a product
88.7that contains intentionally added PFAS only in internal components that do not come into
88.8direct contact with a person's skin or mouth during reasonably foreseeable use or abuse of
88.9the product.
88.10 (b) (c) The commissioner may by rule identify additional products by category or use
88.11that may not be sold, offered for sale, or distributed for sale in this state if they contain
88.12intentionally added PFAS and designate effective dates. A prohibition adopted under this
88.13paragraph must be effective no earlier than January 1, 2025, and no later than January 1,
88.142032. The commissioner must prioritize the prohibition of the sale of product categories
88.15that, in the commissioner's judgment, are most likely to contaminate or harm the state's
88.16environment and natural resources if they contain intentionally added PFAS.
88.17 (c) (d) Beginning January 1, 2032, a person may not sell, offer for sale, or distribute for
88.18sale in this state any product that contains intentionally added PFAS, unless the commissioner
88.19has determined by rule that the use of PFAS in the product is a currently unavoidable use.
88.20The commissioner may specify specific products or product categories for which the
88.21commissioner has determined the use of PFAS is a currently unavoidable use. The
88.22commissioner may not determine that the use of PFAS in a product is a currently unavoidable
88.23use if the product is listed in paragraph (a).
88.24 (d) (e) The commissioner may not take action under paragraph (b) (c) or (c) (d) with
88.25respect to a pesticide, as defined under chapter 18B, a fertilizer, an agricultural liming
88.26material, a plant amendment, or a soil amendment as defined under chapter 18C, unless the
88.27commissioner of agriculture approves the action.
88.28 EFFECTIVE DATE.This section is effective the day following final enactment.
88.29Sec. 3. Minnesota Statutes 2024, section 325E.3892, subdivision 1, is amended to read:
88.30 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
88.31the meanings given.
88.32 (b) "Covered product" means any of the following products or product components:
88Article 7 Sec. 3.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 89.1 (1) jewelry;
89.2 (2) toys;
89.3 (3) cosmetics and personal care products;
89.4 (4) puzzles, board games, card games, and similar games;
89.5 (5) play sets and play structures;
89.6 (6) outdoor games;
89.7 (7) school supplies, except ink pens and mechanical pencils;
89.8 (8) pots and pans;
89.9 (9) cups, bowls, and other food containers;
89.10 (10) craft supplies and jewelry-making supplies;
89.11 (11) chalk, crayons, children's paints, and other art supplies except professional artist
89.12materials, including but not limited to oil-based paints, water-based paints, paints, pastels,
89.13pigments, ceramic glazes, and markers;
89.14 (12) fidget spinners;
89.15 (13) costumes, costume accessories, and children's and seasonal party supplies;
89.16 (14) keys, key chains, and key rings; and
89.17 (15) clothing, footwear, headwear, and accessories.
89.18 (c) "Pastels" means a crayon composed of powdered pigments bonded with gum or resin.
89.19 EFFECTIVE DATE.This section is effective the day following final enactment.
89.20Sec. 4. Minnesota Statutes 2024, section 325E.3892, subdivision 2, is amended to read:
89.21 Subd. 2.Prohibition.(a) A person must not import, manufacture, sell, hold for sale, or
89.22distribute or offer for use in this state any covered product containing:
89.23 (1) lead at more than 0.009 percent by total weight (90 parts per million); or
89.24 (2) cadmium at more than 0.0075 percent by total weight (75 parts per million).
89.25 (b) This section does not apply to:
89.26 (1) covered products containing lead or cadmium, or both, when regulation is preempted
89.27by federal law.; or
89Article 7 Sec. 4.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 90.1 (2) covered products that contain lead only in solder used in internal components or in
90.2pen tips so long as:
90.3 (i) the product is not imported, manufactured, sold, held for sale, distributed, or offered
90.4for use in this state after July 1, 2028; and
90.5 (ii) the manufacturer of the product submits biennial reports to the commissioner of the
90.6Pollution Control Agency that explain the barriers to removing lead from the product,
90.7progress towards adoption of lead-free alternatives, and a timeline to fully adopt a lead-free
90.8alternative.
90.9 EFFECTIVE DATE.This section is effective the day following final enactment.
90.10Sec. 5. Minnesota Statutes 2024, section 325F.072, subdivision 3, is amended to read:
90.11 Subd. 3.Prohibition.(a) No person, political subdivision, or state agency shall
90.12manufacture or knowingly sell, offer for sale, distribute for sale, or distribute for use in this
90.13state, and no person shall use in this state, class B firefighting foam containing PFAS
90.14chemicals.
90.15 (b) This subdivision does not apply to the manufacture, sale, distribution, or use of class
90.16B firefighting foam for which the inclusion of PFAS chemicals is required by federal law,
90.17including but not limited to Code of Federal Regulations, title 14, section 139.317. If a
90.18federal requirement to include PFAS chemicals in class B firefighting foam is revoked after
90.19January 1, 2024, class B firefighting foam subject to the revoked requirements is no longer
90.20exempt under this paragraph effective one year after the day of revocation.
90.21 (c) This subdivision does not apply to the manufacture, sale, distribution, or use of class
90.22B firefighting foam for purposes of use at an airport, as defined under section 360.013,
90.23subdivision 39, until the state fire marshal makes a determination that:
90.24 (1) the Federal Aviation Administration has provided policy guidance on the transition
90.25to fluorine-free firefighting foam;
90.26 (2) a fluorine-free firefighting foam product is included in the Federal Aviation
90.27Administration's Qualified Product Database; and
90.28 (3) a firefighting foam product included in the database under clause (2) is commercially
90.29available in quantities sufficient to reliably meet the requirements under Code of Federal
90.30Regulations, title 14, part 139.
90.31 (d) Until the state fire marshal makes a determination under paragraph (c), the operator
90.32of an airport using class B firefighting foam containing PFAS chemicals must, on or before
90Article 7 Sec. 5.
S2216-1 1st EngrossmentSF2216 REVISOR RSI 91.1December 31 each calendar year, submit a report to the state fire marshal regarding the
91.2status of the airport's conversion to class B firefighting foam products without intentionally
91.3added PFAS, the disposal of class B firefighting foam products with intentionally added
91.4PFAS, and an assessment of the factors listed in paragraph (c) as applied to the airport.
91.5 (e) Until January 1, 2028, this subdivision does not apply to the manufacture, sale,
91.6distribution, or use of class B firefighting foam for use in hangar fixed firefighting systems
91.7at an airport, as defined under section 360.013, subdivision 39. The commissioner of the
91.8Pollution Control Agency, in consultation with the state fire marshal, may provide the
91.9operator of an airport using class B firefighting foam containing PFAS chemicals one year
91.10extensions beyond this date upon a showing that the need for additional time is beyond the
91.11operator's control and that public safety and the environment will be protected during the
91.12period of the extension.
91Article 7 Sec. 5.
S2216-1 1st EngrossmentSF2216 REVISOR RSI Page.Ln 1.27COMMERCE FINANCE.......................................................................ARTICLE 1
Page.Ln 7.1FINANCIAL INSTITUTIONS POLICY...............................................ARTICLE 2
Page.Ln 21.16HEALTH INSURANCE.........................................................................ARTICLE 3
Page.Ln 37.18GENERAL INSURANCE......................................................................ARTICLE 4
Page.Ln 67.24MISCELLANEOUS COMMERCE POLICY........................................ARTICLE 5
Page.Ln 82.16CANNABIS FINANCE POLICY..........................................................ARTICLE 6
Page.Ln 85.1CONSUMER PROTECTION................................................................ARTICLE 7
1
APPENDIX
Article locations for S2216-1