Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2216 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to commerce; establishing a budget for the Department of Commerce;
3	3		1.3 adding, modifying, and eliminating various provisions governing insurance,
4	4		1.4 financial institutions, commercial regulations and consumer protection, and
5	5		1.5 telecommunications; modifying cannabis provisions; modifying fees assessed by
6	6		1.6 the Department of Commerce; establishing a common interest community
7	7		1.7 ombudsperson and a common interest community register; classifying data; making
8	8		1.8 technical changes; appropriating money; amending Minnesota Statutes 2024,
9	9		1.9 sections 45.027, subdivisions 1, 2, by adding a subdivision; 45.24; 46A.04; 47.20,
10	10		1.10 subdivisions 2, 4a, 8; 47.77; 53B.61; 55.07, by adding a subdivision; 58B.02,
11	11		1.11 subdivision 8a; 58B.051; 60A.201, subdivision 2, by adding a subdivision; 60C.09,
12	12		1.12 subdivision 2; 60D.09, by adding a subdivision; 60D.15, subdivisions 4, 7, by
13	13		1.13 adding subdivisions; 60D.16, subdivision 2; 60D.17, subdivision 1; 60D.18,
14	14		1.14 subdivision 3; 60D.19, subdivision 4, by adding subdivisions; 60D.20, subdivision
15	15		1.15 1; 60D.217; 60D.22, subdivisions 1, 3, 6, by adding a subdivision; 60D.24,
16	16		1.16 subdivision 2; 60D.25; 62A.31, subdivisions 1r, 1w; 62A.65, subdivisions 1, 2,
17	17		1.17 by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision 1;
18	18		1.18 62D.221, by adding a subdivision; 62J.26, subdivisions 1, 2, 3, by adding
19	19		1.19 subdivisions; 62Q.73, subdivision 4; 65A.01, subdivision 3c; 72A.20, by adding
20	20		1.20 a subdivision; 80A.65, subdivision 2; 80A.66; 80E.12; 116.943, subdivisions 1,
21	21		1.21 5; 168.27, by adding a subdivision; 216B.40; 216B.62, by adding a subdivision;
22	22		1.22 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3; 325G.24, subdivision 2;
23	23		1.23 334.01, subdivision 2; 342.17; 342.37, by adding subdivisions; Laws 2023, chapter
24	24		1.24 63, article 9, section 5; proposing coding for new law in Minnesota Statutes,
25	25		1.25 chapters 45; 60D; 62A; 168A; 216B; 237; 239; 325F; 515B.
26	26		1.26BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
27	27		1.27 ARTICLE 1
28	28		1.28 COMMERCE FINANCE
29	29		1.29Section 1. APPROPRIATIONS.
30	30		1.30 The sums shown in the columns marked "Appropriations" are appropriated to the agencies
31	31		1.31and for the purposes specified in this article. The appropriations are from the general fund,
32	32		1.32or another named fund, and are available for the fiscal years indicated for each purpose.
33	33		1Article 1 Section 1.
34		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI
	34	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI
35	35		SENATE
36	36		STATE OF MINNESOTA
37	37		S.F. No. 2216NINETY-FOURTH SESSION
38	38		(SENATE AUTHORS: KLEIN)
39	39		OFFICIAL STATUSD-PGDATE
40	40		Introduction and first reading66003/06/2025
41	41		Referred to Commerce and Consumer Protection
42		-	Comm report: To pass as amended and re-refer to Finance1871a04/10/2025
43		-	Comm report: To pass as amended04/22/2025
44		-	Second reading 2.1The figures "2026" and "2027" used in this article mean that the appropriations listed under
	42	+	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
45	43		2.2them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
46	44		2.3"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
47	45		2.4is fiscal years 2026 and 2027. If an appropriation in this act is enacted more than once in
48	46		2.5the 2025 legislative session or a special session, the appropriation must be given effect only
49	47		2.6once.
50	48		2.7 APPROPRIATIONS
51	49		2.8 Available for the Year
52	50		2.9 Ending June 30
53	51		20272.10 2026
54	52		2.11Sec. 2. DEPARTMENT OF COMMERCE
55		-	41,~~302~~,000$41,~~339~~,000$2.12Subdivision 1.Total Appropriation
	53	+	41,281,000$41,318,000$2.12Subdivision 1.Total Appropriation
56	54		2.13 Appropriations by Fund
57	55		20272.14 2026
58		-	38,~~609~~,00038,~~646~~,0002.15General
	56	+	38,588,00038,625,0002.15General
59	57		600,000600,000
60	58		2.16Workers'
61	59		2.17Compensation Fund
62	60		2,093,0002,093,0002.18Special Revenue
63	61		2.19The amounts that may be spent for each
64	62		2.20purpose are specified in the following
65	63		2.21subdivisions.
66		-	2,~~954~~,0002,~~954~~,0002.22Subd. 2.Financial Institutions
	64	+	2,933,0002,933,0002.22Subd. 2.Financial Institutions
67	65		2.23(a) $400,000 each year is for a grant to Prepare
68	66		2.24and Prosper to develop, market, evaluate, and
69	67		2.25distribute a financial services inclusion
70	68		2.26program that (1) assists low-income and
71	69		2.27financially underserved populations to build
72	70		2.28savings and strengthen credit, and (2) provides
73	71		2.29services to assist low-income and financially
74	72		2.30underserved populations to become more
75	73		2.31financially stable and secure. Money
76	74		2.32remaining after the first year is available for
77	75		2.33the second year.
78	76		2.34(b) $254,000 each year is to administer
79	77		2.35Minnesota Statutes, chapter 58B.
80	78		2Article 1 Sec. 2.
81		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 3.1(c) $~~462~~,000 each year is for additional
	79	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 3.1(c) $441,000 each year is for additional
82	80		3.2securities unit staffing.
83	81		12,133,00012,143,0003.3Subd. 3.Administrative Services
84	82		3.4(a) $353,000 each year is for system
85	83		3.5modernization and cybersecurity upgrades for
86	84		3.6the unclaimed property program.
87	85		3.7(b) $249,000 each year is for the senior safe
88	86		3.8fraud prevention program.
89	87		3.9(c) $500,000 each year is to create and
90	88		3.10maintain the Prescription Drug Affordability
91	89		3.11Board established under Minnesota Statutes,
92	90		3.12section 62J.87.
93	91		3.13(d) $12,000 each year is for the intermediate
94	92		3.14blends of gasoline and biofuels report under
95	93		3.15Minnesota Statutes, section 239.791,
96	94		3.16subdivision 8.
97	95		3.17(e) $657,000 the first year and $62,000 the
98	96		3.18second year are for the development,
99	97		3.19maintenance, and staff costs of the common
100	98		3.20interest community register under Minnesota
101	99		3.21Statutes, section 515B.5-101.
102	100		3.22(f) $348,000 each year is for the common
103	101		3.23interest community ombudsperson and related
104	102		3.24staff under Minnesota Statutes, section
105	103		3.2545.0137.
106		-	3.26(g) $75,000 each year is for copper metal
107		-	3.27licensing and enforcement under Minnesota
108		-	3.28Statutes, section 325E.21.
109		-	3.29The base for administrative services is
110		-	3.30$12,411,000 in each of fiscal years 2028 and
111		-	3.312029.
	104	+	3.26The base for administrative services is
	105	+	3.27$12,411,000 in each of fiscal years 2028 and
	106	+	3.282029.
	107	+	6,421,0006,421,0003.29Subd. 4.Enforcement
	108	+	3.30(a) $225,000 each year is to create and
	109	+	3.31maintain the Mental Health Parity and
	110	+	3.32Substance Abuse Accountability Office under
	111	+	3.33Minnesota Statutes, section 62Q.465.
112	112		3Article 1 Sec. 2.
113		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 6,421,0006,421,0004.1Subd. 4.Enforcement
114		-	4.2(a) $225,000 each year is to create and
115		-	4.3maintain the Mental Health Parity and
116		-	4.4Substance Abuse Accountability Office under
117		-	4.5Minnesota Statutes, section 62Q.465.
118		-	4.6(b) $197,000 each year is to create and
119		-	4.7maintain a student loan advocate position
120		-	4.8under Minnesota Statutes, section 58B.011.
121		-	3,235,0003,235,0004.9Subd. 5.Telecommunications
122		-	4.10 Appropriations by Fund
123		-	1,142,0001,142,0004.11General
124		-	2,093,0002,093,0004.12Special Revenue
125		-	4.13$2,093,000 each year is from the
126		-	4.14telecommunications access Minnesota fund
127		-	4.15under Minnesota Statutes, section 237.52,
128		-	4.16subdivision 1, in the special revenue fund for
129		-	4.17the following transfers:
130		-	4.18(1) $1,620,000 each year is to the
131		-	4.19commissioner of human services to
132		-	4.20supplement the ongoing operational expenses
133		-	4.21of the Commission of Deaf, DeafBlind, and
134		-	4.22Hard-of-Hearing Minnesotans. This transfer
135		-	4.23is subject to Minnesota Statutes, section
136		-	4.2416A.281;
137		-	4.25(2) $290,000 each year is to the chief
138		-	4.26information officer to coordinate technology
139		-	4.27accessibility and usability;
140		-	4.28(3) $133,000 each year is to the Legislative
141		-	4.29Coordinating Commission for captioning
142		-	4.30legislative coverage. This transfer is subject
143		-	4.31to Minnesota Statutes, section 16A.281; and
144		-	4.32(4) $50,000 each year is to the Office of
145		-	4.33MN.IT Services for a consolidated access fund
	113	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 4.1(b) $197,000 each year is to create and
	114	+	4.2maintain a student loan advocate position
	115	+	4.3under Minnesota Statutes, section 58B.011.
	116	+	3,235,0003,235,0004.4Subd. 5.Telecommunications
	117	+	4.5 Appropriations by Fund
	118	+	1,142,0001,142,0004.6General
	119	+	2,093,0002,093,0004.7Special Revenue
	120	+	4.8$2,093,000 each year is from the
	121	+	4.9telecommunications access Minnesota fund
	122	+	4.10under Minnesota Statutes, section 237.52,
	123	+	4.11subdivision 1, in the special revenue fund for
	124	+	4.12the following transfers:
	125	+	4.13(1) $1,620,000 each year is to the
	126	+	4.14commissioner of human services to
	127	+	4.15supplement the ongoing operational expenses
	128	+	4.16of the Commission of Deaf, DeafBlind, and
	129	+	4.17Hard-of-Hearing Minnesotans. This transfer
	130	+	4.18is subject to Minnesota Statutes, section
	131	+	4.1916A.281;
	132	+	4.20(2) $290,000 each year is to the chief
	133	+	4.21information officer to coordinate technology
	134	+	4.22accessibility and usability;
	135	+	4.23(3) $133,000 each year is to the Legislative
	136	+	4.24Coordinating Commission for captioning
	137	+	4.25legislative coverage. This transfer is subject
	138	+	4.26to Minnesota Statutes, section 16A.281; and
	139	+	4.27(4) $50,000 each year is to the Office of
	140	+	4.28MN.IT Services for a consolidated access fund
	141	+	4.29to provide grants or services to other state
	142	+	4.30agencies related to accessibility of web-based
	143	+	4.31services.
146	144		4Article 1 Sec. 2.
147		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 5.1to provide grants or services to other state
148		-	5.2agencies related to accessibility of web-based
149		-	5.3services.
150		-	13,483,00013,689,0005.4Subd. 6.Insurance
151		-	5.5 Appropriations by Fund
152		-	12,883,00013,089,0005.6General
	145	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 13,483,00013,689,0005.1Subd. 6.Insurance
	146	+	5.2 Appropriations by Fund
	147	+	12,883,00013,089,0005.3General
153	148		600,000600,000
154		-	5.7Workers'
155		-	5.8Compensation
156		-	5.9(a) $136,000 each year is to advance
157		-	5.10standardized health plan options.
158		-	5.11(b) $105,000 each year is to evaluate
159		-	5.12legislation for new mandated health benefits
160		-	5.13under Minnesota Statutes, section 62J.26.
161		-	5.14(c) $600,000 each year is from the workers'
162		-	5.15compensation fund.
163		-	5.16(d) $42,000 each year is to ensure health plan
164		-	5.17company compliance with Minnesota Statutes,
165		-	5.18section 62Q.47, paragraph (h).
166		-	5.19(e) $25,000 each year is to evaluate existing
167		-	5.20statutory health benefit mandates.
168		-	3,076,0002,897,0005.21Subd. 7.Weights and Measures Division
169		-	5.22$1,341,000 the first year and $1,520,000 the
170		-	5.23second year are for cannabis scale and
171		-	5.24packaging inspections.
	149	+	5.4Workers'
	150	+	5.5Compensation
	151	+	5.6(a) $136,000 each year is to advance
	152	+	5.7standardized health plan options.
	153	+	5.8(b) $105,000 each year is to evaluate
	154	+	5.9legislation for new mandated health benefits
	155	+	5.10under Minnesota Statutes, section 62J.26.
	156	+	5.11(c) $600,000 each year is from the workers'
	157	+	5.12compensation fund.
	158	+	5.13(d) $42,000 each year is to ensure health plan
	159	+	5.14company compliance with Minnesota Statutes,
	160	+	5.15section 62Q.47, paragraph (h).
	161	+	5.16(e) $25,000 each year is to evaluate existing
	162	+	5.17statutory health benefit mandates.
	163	+	3,076,0002,897,0005.18Subd. 7.Weights and Measures Division
172	164		40,017,000$37,150,000$
173		-	5.25Sec. 3. OFFICE OF CANNABIS
174		-	5.26MANAGEMENT
175		-	5.27$690,000 each year is for testing products
176		-	5.28regulated under Minnesota Statutes, section
177		-	5.29151.72, and chapter 342.
178		-	5.30$632,000 the first year and $696,000 the
179		-	5.31second year is for operating a state reference
180		-	5.32laboratory.
	165	+	5.19Sec. 3. OFFICE OF CANNABIS
	166	+	5.20MANAGEMENT
	167	+	5.21$15,000,000 each year is for cannabis industry
	168	+	5.22community renewal grants under Minnesota
	169	+	5.23Statutes, section 342.70. Of this amount, up
	170	+	5.24to three percent may be used to pay for
	171	+	5.25administrative expenses incurred by the Office
	172	+	5.26of Cannabis Management.
	173	+	5.27$1,000,000 each year is for transfer to the
	174	+	5.28CanGrow revolving loan account established
	175	+	5.29under Minnesota Statutes, section 342.73,
	176	+	5.30subdivision 4. Of this amount, up to three
	177	+	5.31percent may be used to pay for administrative
	178	+	5.32expenses incurred by the Office of Cannabis
	179	+	5.33Management.
181	180		5Article 1 Sec. 3.
182		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 6.1$15,000,000 each year is for cannabis industry
183		-	6.2community renewal grants under Minnesota
184		-	6.3Statutes, section 342.70. Of this amount, up
185		-	6.4to three percent may be used to pay for
186		-	6.5administrative expenses incurred by the Office
187		-	6.6of Cannabis Management.
188		-	6.7$1,000,000 each year is for transfer to the
189		-	6.8CanGrow revolving loan account established
190		-	6.9under Minnesota Statutes, section 342.73,
191		-	6.10subdivision 4. Of this amount, up to three
192		-	6.11percent may be used to pay for administrative
193		-	6.12expenses incurred by the Office of Cannabis
194		-	6.13Management.
195		-	6.14The base is $40,103,000 in each of fiscal years
196		-	6.152028 and 2029.
197		-	6.16 Sec. 4. Laws 2023, chapter 63, article 9, section 5, is amended to read:
	181	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 6.1The base is $40,103,000 in each of fiscal years
	182	+	6.22028 and 2029.
	183	+	6.3 Sec. 4. Laws 2023, chapter 63, article 9, section 5, is amended to read:
198	184		17,953,000$21,614,000$
199		-	6.17Sec. 5. OFFICE OF CANNABIS
200		-	6.18MANAGEMENT
201		-	6.19The base for this appropriation is $35,587,000
202		-	6.20in fiscal year 2026 and $38,144,000 in fiscal
203		-	6.21year 2027.
204		-	6.22$1,000,000 the second year is for cannabis
205		-	6.23industry community renewal grants under
206		-	6.24Minnesota Statutes, section 342.70. Of these
207		-	6.25amounts, up to three percent may be used for
208		-	6.26administrative expenses. The base for this
209		-	6.27appropriation is $15,000,000 in fiscal year
210		-	6.282026 and each fiscal year thereafter.
211		-	6.29$1,000,000 the second year is for cannabis
212		-	6.30industry community renewal grants under
213		-	6.31Minnesota Statutes, section 342.70.
214		-	6.32Notwithstanding Minnesota Statutes, section
215		-	6.3316A.28, this appropriation is available until
216		-	6.34June 30, 2026. Of this amount, up to three
	185	+	6.4Sec. 5. OFFICE OF CANNABIS
	186	+	6.5MANAGEMENT
	187	+	6.6The base for this appropriation is $35,587,000
	188	+	6.7in fiscal year 2026 and $38,144,000 in fiscal
	189	+	6.8year 2027.
	190	+	6.9$1,000,000 the second year is for cannabis
	191	+	6.10industry community renewal grants under
	192	+	6.11Minnesota Statutes, section 342.70. Of these
	193	+	6.12amounts, up to three percent may be used for
	194	+	6.13administrative expenses. The base for this
	195	+	6.14appropriation is $15,000,000 in fiscal year
	196	+	6.152026 and each fiscal year thereafter.
	197	+	6.16$1,000,000 the second year is for cannabis
	198	+	6.17industry community renewal grants under
	199	+	6.18Minnesota Statutes, section 342.70.
	200	+	6.19Notwithstanding Minnesota Statutes, section
	201	+	6.2016A.28, this appropriation is available until
	202	+	6.21June 30, 2026. Of this amount, up to three
	203	+	6.22percent may be used to pay for administrative
	204	+	6.23expenses incurred by the Office of Cannabis
	205	+	6.24Management. The base for this appropriation
	206	+	6.25is $15,000,000 in fiscal year 2026 and each
	207	+	6.26fiscal year thereafter.
	208	+	6.27$1,000,000 each year is for transfer to the
	209	+	6.28CanGrow revolving loan account established
	210	+	6.29under Minnesota Statutes, section 342.73,
	211	+	6.30subdivision 4. Of these amounts, up to three
	212	+	6.31percent may be used for administrative
	213	+	6.32expenses.
	214	+	6.33 EFFECTIVE DATE.This section is effective the day following final enactment.
217	215		6Article 1 Sec. 4.
218		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 7.1percent may be used to pay for administrative
219		-	7.2expenses incurred by the Office of Cannabis
220		-	7.3Management. The base for this appropriation
221		-	7.4is $15,000,000 in fiscal year 2026 and each
222		-	7.5fiscal year thereafter.
223		-	7.6$1,000,000 each year is for transfer to the
224		-	7.7CanGrow revolving loan account established
225		-	7.8under Minnesota Statutes, section 342.73,
226		-	7.9subdivision 4. Of these amounts, up to three
227		-	7.10percent may be used for administrative
228		-	7.11expenses.
229		-	7.12 EFFECTIVE DATE.This section is effective the day following final enactment.
230		-	7.13 ARTICLE 2
231		-	7.14 FINANCIAL INSTITUTIONS POLICY
232		-	7.15 Section 1. Minnesota Statutes 2024, section 45.24, is amended to read:
233		-	7.16 45.24 LICENSE TECHNOLOGY FEES.
234		-	7.17 (a) The commissioner may establish and maintain an electronic licensing database system
235		-	7.18for license origination, renewal, and tracking the completion of continuing education
236		-	7.19requirements by individual licensees who have continuing education requirements, and
237		-	7.20other related purposes.
238		-	7.21 (b) The commissioner shall pay for the cost of operating and maintaining the electronic
239		-	7.22database system described in paragraph (a) through a technology surcharge imposed upon
240		-	7.23the fee for license origination and renewal, for individual licenses that require continuing
241		-	7.24education.
242		-	7.25 (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
243		-	7.26licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
244		-	7.27time of license origination and renewal.
245		-	7.28 (d) The Commerce Department technology account is hereby created as an account in
246		-	7.29the special revenue fund.
247		-	7.30 (e) The commissioner shall deposit the surcharge permitted under this section in the
248		-	7.31account created in paragraph (d), and funds in the account are appropriated to the
249		-	7.32commissioner in the amounts needed for purposes of this section. The commissioner of
	216	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 7.1 ARTICLE 2
	217	+	7.2 FINANCIAL INSTITUTIONS POLICY
	218	+	7.3 Section 1. Minnesota Statutes 2024, section 45.24, is amended to read:
	219	+	7.4 45.24 LICENSE TECHNOLOGY FEES.
	220	+	7.5 (a) The commissioner may establish and maintain an electronic licensing database system
	221	+	7.6for license origination, renewal, and tracking the completion of continuing education
	222	+	7.7requirements by individual licensees who have continuing education requirements, and
	223	+	7.8other related purposes.
	224	+	7.9 (b) The commissioner shall pay for the cost of operating and maintaining the electronic
	225	+	7.10database system described in paragraph (a) through a technology surcharge imposed upon
	226	+	7.11the fee for license origination and renewal, for individual licenses that require continuing
	227	+	7.12education.
	228	+	7.13 (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
	229	+	7.14licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
	230	+	7.15time of license origination and renewal.
	231	+	7.16 (d) The Commerce Department technology account is hereby created as an account in
	232	+	7.17the special revenue fund.
	233	+	7.18 (e) The commissioner shall deposit the surcharge permitted under this section in the
	234	+	7.19account created in paragraph (d), and funds in the account are appropriated to the
	235	+	7.20commissioner in the amounts needed for purposes of this section. The commissioner of
	236	+	7.21management and budget shall transfer an amount determined by the commissioner of
	237	+	7.22commerce from the account to the statewide electronic licensing system account under
	238	+	7.23section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
	239	+	7.24of licenses subject to this section.
	240	+	7.25 (f) The commissioner shall may temporarily reduce or suspend the surcharge as necessary
	241	+	7.26if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
	242	+	7.27June in any calendar year and shall must annually review the anticipated costs under
	243	+	7.28paragraph (b) to determine the amount to increase or decrease the surcharge as necessary
	244	+	7.29to keep the fund balance at an adequate level but not in excess of $2,000,000.
250	245		7Article 2 Section 1.
251		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 8.1management and budget shall transfer an amount determined by the commissioner of
252		-	8.2commerce from the account to the statewide electronic licensing system account under
253		-	8.3section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
254		-	8.4of licenses subject to this section.
255		-	8.5 (f) The commissioner shall may temporarily reduce or suspend the surcharge as necessary
256		-	8.6if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
257		-	8.7June in any calendar year and shall must annually review the anticipated costs under
258		-	8.8paragraph (b) to determine the amount to increase or decrease the surcharge as necessary
259		-	8.9to keep the fund balance at an adequate level but not in excess of $2,000,000.
260		-	8.10 Sec. 2. Minnesota Statutes 2024, section 46A.04, is amended to read:
261		-	8.11 46A.04 EXCEPTIONS AND EXEMPTIONS.
262		-	8.12 (a) The requirements under section 46A.03, subdivisions 3, paragraph (b); 5, paragraph
263		-	8.13(a) (b); 9; and 10, do not apply to financial institutions that maintain customer information
264		-	8.14concerning fewer than 5,000 consumers.
265		-	8.15 (b) This chapter does not apply to credit unions or federally insured depository
266		-	8.16institutions.
267		-	8.17 Sec. 3. Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:
268		-	8.18 Subd. 2.Definitions.For the purposes of this section the terms defined in this subdivision
269		-	8.19have the meanings given them:
270		-	8.20 (1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
271		-	8.21whether or not retained by the mortgagee or lender:
272		-	8.22 (a) Any insurance premiums including but not limited to premiums for title insurance,
273		-	8.23fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
274		-	8.24excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
275		-	8.25 (b) Abstracting, title examination and search, and examination of public records.
276		-	8.26 (c) The preparation and recording of any or all documents required by law or custom
277		-	8.27for closing a conventional or cooperative apartment loan.
278		-	8.28 (d) Appraisal and survey of real property securing a conventional loan or real property
279		-	8.29owned by a cooperative apartment corporation of which a share or shares of stock or a
280		-	8.30membership certificate or certificates are to secure a cooperative apartment loan.
	246	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 8.1 Sec. 2. Minnesota Statutes 2024, section 46A.04, is amended to read:
	247	+	8.2 46A.04 EXCEPTIONS AND EXEMPTIONS.
	248	+	8.3 (a) The requirements under section 46A.03, subdivisions 3, paragraph (b); 5, paragraph
	249	+	8.4(a) (b); 9; and 10, do not apply to financial institutions that maintain customer information
	250	+	8.5concerning fewer than 5,000 consumers.
	251	+	8.6 (b) This chapter does not apply to credit unions or federally insured depository
	252	+	8.7institutions.
	253	+	8.8 Sec. 3. Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:
	254	+	8.9 Subd. 2.Definitions.For the purposes of this section the terms defined in this subdivision
	255	+	8.10have the meanings given them:
	256	+	8.11 (1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
	257	+	8.12whether or not retained by the mortgagee or lender:
	258	+	8.13 (a) Any insurance premiums including but not limited to premiums for title insurance,
	259	+	8.14fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
	260	+	8.15excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
	261	+	8.16 (b) Abstracting, title examination and search, and examination of public records.
	262	+	8.17 (c) The preparation and recording of any or all documents required by law or custom
	263	+	8.18for closing a conventional or cooperative apartment loan.
	264	+	8.19 (d) Appraisal and survey of real property securing a conventional loan or real property
	265	+	8.20owned by a cooperative apartment corporation of which a share or shares of stock or a
	266	+	8.21membership certificate or certificates are to secure a cooperative apartment loan.
	267	+	8.22 (e) A single service charge, which includes any consideration, not otherwise specified
	268	+	8.23herein as an "actual closing cost" paid by the borrower and received and retained by the
	269	+	8.24lender for or related to the acquisition, making, refinancing or modification of a conventional
	270	+	8.25or cooperative apartment loan, and also includes any consideration received by the lender
	271	+	8.26for making a borrower's interest rate commitment or for making a borrower's loan
	272	+	8.27commitment, whether or not an actual loan follows the commitment. The term service charge
	273	+	8.28does not include forward commitment fees. The service charge shall not exceed one percent
	274	+	8.29of the original bona fide principal amount of the conventional or cooperative apartment
	275	+	8.30loan, except that in the case of a construction loan, the service charge shall not exceed two
	276	+	8.31percent of the original bona fide principal amount of the loan. That portion of the service
	277	+	8.32charge imposed because the loan is a construction loan shall be itemized and a copy of the
281	278		8Article 2 Sec. 3.
282		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 9.1 (e) A single service charge, which includes any consideration, not otherwise specified
283		-	9.2herein as an "actual closing cost" paid by the borrower and received and retained by the
284		-	9.3lender for or related to the acquisition, making, refinancing or modification of a conventional
285		-	9.4or cooperative apartment loan, and also includes any consideration received by the lender
286		-	9.5for making a borrower's interest rate commitment or for making a borrower's loan
287		-	9.6commitment, whether or not an actual loan follows the commitment. The term service charge
288		-	9.7does not include forward commitment fees. The service charge shall not exceed one percent
289		-	9.8of the original bona fide principal amount of the conventional or cooperative apartment
290		-	9.9loan, except that in the case of a construction loan, the service charge shall not exceed two
291		-	9.10percent of the original bona fide principal amount of the loan. That portion of the service
292		-	9.11charge imposed because the loan is a construction loan shall be itemized and a copy of the
293		-	9.12itemization furnished the borrower. A lender shall not collect from a borrower the additional
294		-	9.13one percent service charge permitted for a construction loan if it does not perform the service
295		-	9.14for which the charge is imposed or if third parties perform and charge the borrower for the
296		-	9.15service for which the lender has imposed the charge. A loan that meets the Federal Qualified
297		-	9.16Mortgage standards in Code of Federal Regulations, title 12, section 1026.43(e)(3), is exempt
298		-	9.17from the service charge limitations under this section.
299		-	9.18 (f) Charges and fees necessary for or related to the transfer of real or personal property
300		-	9.19securing a conventional or cooperative apartment loan or the closing of a conventional or
301		-	9.20cooperative apartment loan paid by the borrower and received by any party other than the
302		-	9.21lender.
303		-	9.22 (2) "Contract for deed" means an executory contract for the conveyance of real estate,
304		-	9.23the original principal amount of which is less than $300,000. A commitment for a contract
305		-	9.24for deed shall include an executed purchase agreement or earnest money contract wherein
306		-	9.25the seller agrees to finance any part or all of the purchase price by a contract for deed.
307		-	9.26 (3) "Conventional loan" means a loan or advance of credit, other than a
308		-	9.27 loan or advance of credit made by a credit union or made pursuant to section 334.011,
309		-	9.28to a noncorporate borrower in an original principal amount of less than or equal to the
310		-	9.29conforming loan limit established by the Federal Housing Finance Agency under the Housing
311		-	9.30and Recovery Act of 2018, Public Law 110-289, secured by a mortgage upon real property
312		-	9.31containing one or more residential units or upon which at the time the loan is made it is
313		-	9.32intended that one or more residential units are to be constructed, and which is not insured
314		-	9.33or guaranteed by the secretary of housing and urban development, by the administrator of
315		-	9.34veterans affairs, or by the administrator of the Farmers Home Administration, and which
	279	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 9.1itemization furnished the borrower. A lender shall not collect from a borrower the additional
	280	+	9.2one percent service charge permitted for a construction loan if it does not perform the service
	281	+	9.3for which the charge is imposed or if third parties perform and charge the borrower for the
	282	+	9.4service for which the lender has imposed the charge. A loan that meets the Federal Qualified
	283	+	9.5Mortgage standards in Code of Federal Regulations, title 12, section 1026.43(e)(3), is exempt
	284	+	9.6from the service charge limitations under this section.
	285	+	9.7 (f) Charges and fees necessary for or related to the transfer of real or personal property
	286	+	9.8securing a conventional or cooperative apartment loan or the closing of a conventional or
	287	+	9.9cooperative apartment loan paid by the borrower and received by any party other than the
	288	+	9.10lender.
	289	+	9.11 (2) "Contract for deed" means an executory contract for the conveyance of real estate,
	290	+	9.12the original principal amount of which is less than $300,000. A commitment for a contract
	291	+	9.13for deed shall include an executed purchase agreement or earnest money contract wherein
	292	+	9.14the seller agrees to finance any part or all of the purchase price by a contract for deed.
	293	+	9.15 (3) "Conventional loan" means a loan or advance of credit, other than a
	294	+	9.16 loan or advance of credit made by a credit union or made pursuant to section 334.011,
	295	+	9.17to a noncorporate borrower in an original principal amount of less than or equal to the
	296	+	9.18conforming loan limit established by the Federal Housing Finance Agency under the Housing
	297	+	9.19and Recovery Act of 2018, Public Law 110-289, secured by a mortgage upon real property
	298	+	9.20containing one or more residential units or upon which at the time the loan is made it is
	299	+	9.21intended that one or more residential units are to be constructed, and which is not insured
	300	+	9.22or guaranteed by the secretary of housing and urban development, by the administrator of
	301	+	9.23veterans affairs, or by the administrator of the Farmers Home Administration, and which
	302	+	9.24is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
	303	+	9.25mortgage does not include contracts for deed or installment land contracts.
	304	+	9.26 (4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
	305	+	9.27or advance of credit made by a credit union or made pursuant to section 334.011, to a
	306	+	9.28noncorporate borrower in an original principal amount of less than $100,000, secured by a
	307	+	9.29security interest on a share or shares of stock or a membership certificate or certificates
	308	+	9.30issued to a stockholder or member by a cooperative apartment corporation, which may be
	309	+	9.31accompanied by an assignment by way of security of the borrower's interest in the proprietary
	310	+	9.32lease or occupancy agreement in property issued by the cooperative apartment corporation
	311	+	9.33and which is not insured or guaranteed by the secretary of housing and urban development,
316	312		9Article 2 Sec. 3.
317		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 10.~~1is not made pursuant to~~ the ~~authority granted in subdivision 1~~, ~~clause (3)~~ or ~~(4).~~ The ~~term~~
318		-	10.~~2mortgage does not include contracts for deed or installment land contracts~~.
319		-	10.3 (4) "Cooperative apartment ~~loan~~" means a ~~loan~~ or ~~advance of credit, other than a loan~~
320		-	10.~~4or advance~~ of ~~credit made~~ by ~~a credit union or made pursuant to section 334.011, to a~~
321		-	10.~~5noncorporate borrower~~ in ~~an original principal amount of less than $100,000, secured by a~~
322		-	10.~~6security interest on~~ a ~~share~~ or ~~shares of stock or a membership certificate or certificates~~
323		-	10.~~7issued to a stockholder~~ or ~~member by a cooperative apartment corporation, which may be~~
324		-	10.~~8accompanied by an assignment by way of security of the borrower's interest in the proprietary~~
325		-	10.~~9lease~~ or ~~occupancy agreement in property issued by~~ the ~~cooperative apartment corporation~~
326		-	10.~~10and which is not insured~~ or ~~guaranteed by the secretary of housing and urban development~~,
327		-	10.~~11by the administrator of veterans affairs~~, or by the ~~administrator~~ of ~~the Farmers Home~~
328		-	10.~~12Administration.~~
329		-	10.~~13 (5) "Cooperative~~ ~~apartment corporation"~~ ~~means a corporation or cooperative organized~~
330		-	10.~~14under~~ chapter ~~308A~~ or ~~317A, the shareholders~~ or ~~members of which are entitled,~~ ~~solely by~~
331		-	10.~~15reason~~ of ~~their ownership of stock~~ or ~~membership certificates in~~ the ~~corporation or~~
332		-	10.~~16association,~~ to ~~occupy one~~ or more ~~residential units in a building owned or leased by the~~
333		-	10.~~17corporation~~ or ~~association.~~
334		-	10.~~18 (6) "~~Forward commitment ~~fee" means a fee or other consideration paid to a lender for~~
335		-	10.~~19the purpose~~ of ~~securing a binding forward commitment by or through~~ the ~~lender to make~~
336		-	10.~~20conventional loans to two or more credit worthy purchasers, including future purchasers,~~
337		-	10.~~21of residential units,~~ or a ~~fee or other consideration paid to~~ a ~~lender for the purpose of securing~~
338		-	10.~~22a binding forward commitment by or through~~ the lender ~~to make~~ conventional ~~loans to two~~
339		-	10.~~23or more credit worthy purchasers,~~ ~~including future purchasers,~~ of ~~units~~ to ~~be created out of~~
340		-	10.~~24existing structures pursuant to chapter 515B,~~ or ~~a fee or other consideration paid to~~ a ~~lender~~
341		-	10.~~25for~~ the ~~purpose~~ of ~~securing a binding forward commitment by or through~~ the ~~lender to make~~
342		-	10.~~26cooperative apartment loans to two or more credit worthy purchasers,~~ ~~including future~~
343		-	10.~~27purchasers, of a share or shares of stock or a membership certificate or certificates in a~~
344		-	10.~~28cooperative apartment corporation;~~ ~~provided, that the forward~~ commitment ~~rate of interest~~
345		-	10.~~29does not exceed~~ the ~~maximum lawful rate of interest effective as of the date the forward~~
346		-	10.~~30commitment is issued by~~ the ~~lender.~~
347		-	10.~~31 (7) "Borrower's~~ interest rate ~~commitment" means a binding commitment made by a~~
348		-	10.~~32lender to a borrower wherein~~ the ~~lender agrees that,~~ ~~if a conventional or cooperative~~
349		-	10.~~33apartment loan is made following issuance~~ of ~~and pursuant~~ to ~~the commitment, the~~
350		-	10.~~34conventional~~ or cooperative apartment loan ~~shall be made at~~ a ~~rate of interest not~~ in ~~excess~~
351		-	10.~~35of the~~ rate of interest ~~agreed to in~~ the ~~commitment, provided that the~~ rate of interest ~~agreed~~
	313	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 10.1by the administrator of veterans affairs, or by the administrator of the Farmers Home
	314	+	10.2Administration.
	315	+	10.3 (5) "Cooperative apartment corporation" means a corporation or cooperative organized
	316	+	10.4under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
	317	+	10.5reason of their ownership of stock or membership certificates in the corporation or
	318	+	10.6association, to occupy one or more residential units in a building owned or leased by the
	319	+	10.7corporation or association.
	320	+	10.8 (6) "Forward commitment fee" means a fee or other consideration paid to a lender for
	321	+	10.9the purpose of securing a binding forward commitment by or through the lender to make
	322	+	10.10conventional loans to two or more credit worthy purchasers, including future purchasers,
	323	+	10.11of residential units, or a fee or other consideration paid to a lender for the purpose of securing
	324	+	10.12a binding forward commitment by or through the lender to make conventional loans to two
	325	+	10.13or more credit worthy purchasers, including future purchasers, of units to be created out of
	326	+	10.14existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
	327	+	10.15for the purpose of securing a binding forward commitment by or through the lender to make
	328	+	10.16cooperative apartment loans to two or more credit worthy purchasers, including future
	329	+	10.17purchasers, of a share or shares of stock or a membership certificate or certificates in a
	330	+	10.18cooperative apartment corporation; provided, that the forward commitment rate of interest
	331	+	10.19does not exceed the maximum lawful rate of interest effective as of the date the forward
	332	+	10.20commitment is issued by the lender.
	333	+	10.21 (7) "Borrower's interest rate commitment" means a binding commitment made by a
	334	+	10.22lender to a borrower wherein the lender agrees that, if a conventional or cooperative
	335	+	10.23apartment loan is made following issuance of and pursuant to the commitment, the
	336	+	10.24conventional or cooperative apartment loan shall be made at a rate of interest not in excess
	337	+	10.25of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
	338	+	10.26to in the commitment is not in excess of the maximum lawful rate of interest effective as
	339	+	10.27of the date the commitment is issued by the lender to the borrower.
	340	+	10.28 (8) "Borrower's loan commitment" means a binding commitment made by a lender to a
	341	+	10.29borrower wherein the lender agrees to make a conventional or cooperative apartment loan
	342	+	10.30pursuant to the provisions, including the interest rate, of the commitment, provided that the
	343	+	10.31commitment rate of interest does not exceed the maximum lawful rate of interest effective
	344	+	10.32as of the date the commitment is issued and the commitment when issued and agreed to
	345	+	10.33shall constitute a legally binding obligation on the part of the mortgagee or lender to make
	346	+	10.34a conventional or cooperative apartment loan within a specified time period in the future at
	347	+	10.35a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
352	348		10Article 2 Sec. 3.
353		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 11.~~1to in the~~ commitment is ~~not in excess of~~ the ~~maximum lawful rate of interest effective as~~
354		-	11.~~2of the date the~~ commitment ~~is issued by the lender~~ to the ~~borrower.~~
355		-	11.~~3 (8) "~~Borrower's loan commitment~~" means~~ a ~~binding commitment made by a lender~~ to a
356		-	11.~~4borrower wherein~~ the ~~lender agrees to make a conventional or cooperative apartment loan~~
357		-	11.~~5pursuant to~~ the ~~provisions, including the interest rate, of the commitment, provided that the~~
358		-	11.~~6commitment rate~~ of ~~interest does not exceed the maximum lawful rate of interest effective~~
359		-	11.~~7as~~ of the ~~date~~ the ~~commitment is issued and the commitment when issued and agreed to~~
360		-	11.~~8shall constitute~~ a ~~legally binding obligation on the part of the mortgagee~~ or ~~lender to make~~
361		-	11.9a conventional or cooperative apartment loan ~~within~~ a ~~specified time period in the future at~~
362		-	11.~~10a rate~~ of ~~interest not exceeding the maximum lawful rate~~ of ~~interest effective as~~ of ~~the date~~
363		-	11.~~11the commitment is issued by the lender to the borrower; provided that~~ a ~~lender who issues~~
364		-	11.12a ~~borrower's~~ loan ~~commitment pursuant~~ to the ~~provisions of a forward commitment is~~
365		-	11.~~13authorized to issue~~ the ~~borrower's loan commitment at a rate of interest not to exceed~~ the
366		-	11.~~14maximum lawful rate of interest effective as of the date the~~ forward commitment ~~is issued~~
367		-	11.~~15by~~ the ~~lender~~.
368		-	11.~~16 (9) "Finance~~ ~~charge" means~~ the ~~total cost of a conventional or cooperative apartment~~
369		-	11.~~17loan including extensions or grant of credit regardless~~ of the ~~characterization~~ of the ~~same~~
370		-	11.~~18and includes interest,~~ ~~finders fees,~~ and ~~other charges levied by a lender directly or indirectly~~
371		-	11.~~19against~~ the ~~person obtaining~~ the ~~conventional or cooperative apartment loan or against a~~
372		-	11.~~20seller of real property securing a conventional loan or a seller of a share or shares of stock~~
373		-	11.~~21or~~ a ~~membership certificate~~ or ~~certificates in a~~ cooperative apartment ~~corporation securing~~
374		-	11.~~22a~~ cooperative apartment loan~~, or any other party to~~ the ~~transaction except any actual closing~~
375		-	11.~~23costs and~~ any ~~forward commitment fee.~~ ~~The finance charges plus the actual closing costs~~
376		-	11.~~24and any forward commitment fee, charged by a lender shall include all charges made by a~~
377		-	11.~~25lender other than~~ the ~~principal~~ of ~~the conventional or cooperative apartment loan.~~ The ~~finance~~
378		-	11.~~26charge, with respect to wraparound mortgages,~~ shall be computed ~~based upon~~ the ~~face~~
379		-	11.~~27amount~~ of ~~the wraparound mortgage note~~, ~~which face amount shall consist of the aggregate~~
380		-	11.28of ~~those funds actually advanced by~~ the ~~wraparound lender and the total outstanding principal~~
381		-	11.~~29balances~~ of ~~the prior note or notes which have been made a part of the~~ wraparound ~~mortgage~~
382		-	11.~~30note.~~
383		-	11.~~31 (10) "Lender" means~~ any ~~person making a conventional~~ or ~~cooperative apartment loan,~~
384		-	11.~~32or any person arranging financing for a conventional or cooperative apartment loan.~~ The
385		-	11.~~33term also includes~~ the ~~holder~~ or ~~assignee at any time of~~ a ~~conventional or cooperative~~
386		-	11.~~34apartment loan~~.
	349	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 11.1the commitment is issued by the lender to the borrower; provided that a lender who issues
	350	+	11.2a borrower's loan commitment pursuant to the provisions of a forward commitment is
	351	+	11.3authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
	352	+	11.4maximum lawful rate of interest effective as of the date the forward commitment is issued
	353	+	11.5by the lender.
	354	+	11.6 (9) "Finance charge" means the total cost of a conventional or cooperative apartment
	355	+	11.7loan including extensions or grant of credit regardless of the characterization of the same
	356	+	11.8and includes interest, finders fees, and other charges levied by a lender directly or indirectly
	357	+	11.9against the person obtaining the conventional or cooperative apartment loan or against a
	358	+	11.10seller of real property securing a conventional loan or a seller of a share or shares of stock
	359	+	11.11or a membership certificate or certificates in a cooperative apartment corporation securing
	360	+	11.12a cooperative apartment loan, or any other party to the transaction except any actual closing
	361	+	11.13costs and any forward commitment fee. The finance charges plus the actual closing costs
	362	+	11.14and any forward commitment fee, charged by a lender shall include all charges made by a
	363	+	11.15lender other than the principal of the conventional or cooperative apartment loan. The finance
	364	+	11.16charge, with respect to wraparound mortgages, shall be computed based upon the face
	365	+	11.17amount of the wraparound mortgage note, which face amount shall consist of the aggregate
	366	+	11.18of those funds actually advanced by the wraparound lender and the total outstanding principal
	367	+	11.19balances of the prior note or notes which have been made a part of the wraparound mortgage
	368	+	11.20note.
	369	+	11.21 (10) "Lender" means any person making a conventional or cooperative apartment loan,
	370	+	11.22or any person arranging financing for a conventional or cooperative apartment loan. The
	371	+	11.23term also includes the holder or assignee at any time of a conventional or cooperative
	372	+	11.24apartment loan.
	373	+	11.25 (11) "Loan yield" means the annual rate of return obtained by a lender over the term of
	374	+	11.26a conventional or cooperative apartment loan and shall be computed as the annual percentage
	375	+	11.27rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
	376	+	11.28of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
	377	+	11.29for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
	378	+	11.30the rate of interest or loan yield shall be based upon the principal balance set forth in the
	379	+	11.31wraparound note and mortgage and shall not include any interest differential or yield
	380	+	11.32differential between the stated interest rate on the wraparound mortgage and the stated
	381	+	11.33interest rate on the one or more prior mortgages included in the stated loan amount on a
	382	+	11.34wraparound note and mortgage.
387	383		11Article 2 Sec. 3.
388		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 12.1 (11) "Loan yield" means the annual rate of return obtained by a lender over the term of
389		-	12.2a conventional or cooperative apartment loan and shall be computed as the annual percentage
390		-	12.3rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
391		-	12.4of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
392		-	12.5for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
393		-	12.6the rate of interest or loan yield shall be based upon the principal balance set forth in the
394		-	12.7wraparound note and mortgage and shall not include any interest differential or yield
395		-	12.8differential between the stated interest rate on the wraparound mortgage and the stated
396		-	12.9interest rate on the one or more prior mortgages included in the stated loan amount on a
397		-	12.10wraparound note and mortgage.
398		-	12.11 (12) "Person" means an individual, corporation, business trust, partnership or association
399		-	12.12or any other legal entity.
400		-	12.13 (13) "Residential unit" means any structure used principally for residential purposes or
401		-	12.14any portion thereof, and includes a unit in a common interest community, a nonowner
402		-	12.15occupied residence, and any other type of residence regardless of whether the unit is used
403		-	12.16as a principal residence, secondary residence, vacation residence, or residence of some other
404		-	12.17denomination.
405		-	12.18 (14) "Vendor" means any person or persons who agree to sell real estate and finance
406		-	12.19any part or all of the purchase price by a contract for deed. The term also includes the holder
407		-	12.20or assignee at any time of the vendor's interest in a contract for deed.
408		-	12.21Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
409		-	12.22 Subd. 8.Conventional loan provisions.(a) A lender making a conventional loan shall
410		-	12.23comply with the following:
411		-	12.24 (1) the promissory note and mortgage evidencing a conventional loan shall be printed
412		-	12.25in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
413		-	12.26typewritten numerals, or shall be legibly handwritten.;
414		-	12.27 (2) the mortgage evidencing a conventional loan shall contain a provision whereby the
415		-	12.28lender agrees to furnish the borrower with a conformed copy of the promissory note and
416		-	12.29mortgage at the time they are executed or within a reasonable time after recordation of the
417		-	12.30mortgage.; and
418		-	12.31 (3) the mortgage evidencing a conventional loan shall contain a provision whereby the
419		-	12.32lender, if it intends to foreclose, agrees to give the borrower written notice of any default
420		-	12.33under the terms or conditions of the promissory note or mortgage, by sending the notice by
	384	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 12.1 (12) "Person" means an individual, corporation, business trust, partnership or association
	385	+	12.2or any other legal entity.
	386	+	12.3 (13) "Residential unit" means any structure used principally for residential purposes or
	387	+	12.4any portion thereof, and includes a unit in a common interest community, a nonowner
	388	+	12.5occupied residence, and any other type of residence regardless of whether the unit is used
	389	+	12.6as a principal residence, secondary residence, vacation residence, or residence of some other
	390	+	12.7denomination.
	391	+	12.8 (14) "Vendor" means any person or persons who agree to sell real estate and finance
	392	+	12.9any part or all of the purchase price by a contract for deed. The term also includes the holder
	393	+	12.10or assignee at any time of the vendor's interest in a contract for deed.
	394	+	12.11Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
	395	+	12.12 Subd. 8.Conventional loan provisions.(a) A lender making a conventional loan shall
	396	+	12.13comply with the following:
	397	+	12.14 (1) the promissory note and mortgage evidencing a conventional loan shall be printed
	398	+	12.15in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
	399	+	12.16typewritten numerals, or shall be legibly handwritten.;
	400	+	12.17 (2) the mortgage evidencing a conventional loan shall contain a provision whereby the
	401	+	12.18lender agrees to furnish the borrower with a conformed copy of the promissory note and
	402	+	12.19mortgage at the time they are executed or within a reasonable time after recordation of the
	403	+	12.20mortgage.; and
	404	+	12.21 (3) the mortgage evidencing a conventional loan shall contain a provision whereby the
	405	+	12.22lender, if it intends to foreclose, agrees to give the borrower written notice of any default
	406	+	12.23under the terms or conditions of the promissory note or mortgage, by sending the notice by
	407	+	12.24certified: (i) first-class mail to the address of the mortgaged property or such other a different
	408	+	12.25address as the borrower may have designated designates in writing to the lender; or (ii)
	409	+	12.26email or other electronic communication, if agreed to by the lender and the borrower in
	410	+	12.27writing. The lender need not give the borrower the notice required by this paragraph clause
	411	+	12.28if the default consists of the borrower selling the mortgaged property without the required
	412	+	12.29consent of the lender.
	413	+	12.30 (b) The mortgage shall further provide that the notice under paragraph (a), clause (3),
	414	+	12.31shall contain the following provisions:
	415	+	12.32 (a) (1) the nature of the default by the borrower;
421	416		12Article 2 Sec. 4.
422		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 13.1certified: (i) first-class mail to the address of the mortgaged property or such other a different
423		-	13.2address as the borrower may have designated designates in writing to the lender; or (ii)
424		-	13.3email or other electronic communication, if agreed to by the lender and the borrower in
425		-	13.4writing. The lender need not give the borrower the notice required by this paragraph clause
426		-	13.5if the default consists of the borrower selling the mortgaged property without the required
427		-	13.6consent of the lender.
428		-	13.7 (b) The mortgage shall further provide that the notice under paragraph (a), clause (3),
429		-	13.8shall contain the following provisions:
430		-	13.9 (a) (1) the nature of the default by the borrower;
431		-	13.10 (b) (2) the action required to cure the default;
432		-	13.11 (c) (3) a date, not less than 30 days from the date the notice is mailed by which the
433		-	13.12default must be cured;
434		-	13.13 (d) (4) that failure to cure the default on or before the date specified in the notice may
435		-	13.14result in acceleration of the sums secured by the mortgage and sale of the mortgaged
436		-	13.15premises;
437		-	13.16 (e) (5) that the borrower has the right to reinstate the mortgage after acceleration; and
438		-	13.17 (f) (6) that the borrower has the right to bring a court action to assert the nonexistence
439		-	13.18of a default or any other defense of the borrower to acceleration and sale.
440		-	13.19Sec. 5. Minnesota Statutes 2024, section 47.77, is amended to read:
441		-	13.20 47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
442		-	13.21 (a) No financial institution shall initiate a transfer of a deposit account to another deposit
443		-	13.22account bearing different identification information without sending at least 30 days' prior
444		-	13.23notice to at least one of the deposit account holders at the last known address on file with
445		-	13.24the financial institution. If the new account is subject to different terms, the financial
446		-	13.25institution must obtain the written consent of at least one of the deposit account holders
447		-	13.26before the new terms become effective.
448		-	13.27 (b) No financial institution shall initiate a closure of a deposit account without first
449		-	13.28sending at least one of the deposit account holders a notice of intent to close the deposit
450		-	13.29account. The notice must be sent to the deposit account holder's last known address on file
451		-	13.30with the financial institution at least 30 days before the financial institution closes the deposit
452		-	13.31account;, except that, if the financial institution has reasonable suspicion to believe that
453		-	13.32account is being used in connection with a check-related fraud or other crime or that, funds
	417	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 13.1 (b) (2) the action required to cure the default;
	418	+	13.2 (c) (3) a date, not less than 30 days from the date the notice is mailed by which the
	419	+	13.3default must be cured;
	420	+	13.4 (d) (4) that failure to cure the default on or before the date specified in the notice may
	421	+	13.5result in acceleration of the sums secured by the mortgage and sale of the mortgaged
	422	+	13.6premises;
	423	+	13.7 (e) (5) that the borrower has the right to reinstate the mortgage after acceleration; and
	424	+	13.8 (f) (6) that the borrower has the right to bring a court action to assert the nonexistence
	425	+	13.9of a default or any other defense of the borrower to acceleration and sale.
	426	+	13.10Sec. 5. Minnesota Statutes 2024, section 47.77, is amended to read:
	427	+	13.11 47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
	428	+	13.12 (a) No financial institution shall initiate a transfer of a deposit account to another deposit
	429	+	13.13account bearing different identification information without sending at least 30 days' prior
	430	+	13.14notice to at least one of the deposit account holders at the last known address on file with
	431	+	13.15the financial institution. If the new account is subject to different terms, the financial
	432	+	13.16institution must obtain the written consent of at least one of the deposit account holders
	433	+	13.17before the new terms become effective.
	434	+	13.18 (b) No financial institution shall initiate a closure of a deposit account without first
	435	+	13.19sending at least one of the deposit account holders a notice of intent to close the deposit
	436	+	13.20account. The notice must be sent to the deposit account holder's last known address on file
	437	+	13.21with the financial institution at least 30 days before the financial institution closes the deposit
	438	+	13.22account;, except that, if the financial institution has reasonable suspicion to believe that
	439	+	13.23account is being used in connection with a check-related fraud or other crime or that, funds
	440	+	13.24will not be available to pay items drawn on the account, or the deposit account holder has
	441	+	13.25engaged in disruptive, hostile, or harassing behavior toward financial institution employees
	442	+	13.26or customers, the notice may be sent the same day as the account is closed.
	443	+	13.27 (c) As used in this section, the following terms have the meanings given them. "Deposit
	444	+	13.28account" means a contract of deposit of funds between a depositor and a financial institution,
	445	+	13.29and includes a checking account, savings account, certificate of deposit share account, and
	446	+	13.30other like arrangement. "Financial institution" means any organization authorized to do
	447	+	13.31business under state or federal laws relating to financial institutions, including, without
	448	+	13.32limitation, banks and trust companies, savings banks, savings associations, industrial loan
	449	+	13.33and thrift companies, and credit unions.
454	450		13Article 2 Sec. 5.
455		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 14.1will not be available to pay items drawn on the account, or the deposit account holder has
456		-	14.2engaged in disruptive, hostile, or harassing behavior toward financial institution employees
457		-	14.3or customers, the notice may be sent the same day as the account is closed.
458		-	14.4 (c) As used in this section, the following terms have the meanings given them. "Deposit
459		-	14.5account" means a contract of deposit of funds between a depositor and a financial institution,
460		-	14.6and includes a checking account, savings account, certificate of deposit share account, and
461		-	14.7other like arrangement. "Financial institution" means any organization authorized to do
462		-	14.8business under state or federal laws relating to financial institutions, including, without
463		-	14.9limitation, banks and trust companies, savings banks, savings associations, industrial loan
464		-	14.10and thrift companies, and credit unions.
465		-	14.11Sec. 6. Minnesota Statutes 2024, section 53B.61, is amended to read:
466		-	14.12 53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.
467		-	14.13 (a) A licensee must maintain at all times permissible investments that have a market
468		-	14.14value computed in accordance with United States generally accepted accounting principles
469		-	14.15of not less than the aggregate amount of all of the licensee's outstanding money transmission
470		-	14.16obligations.
471		-	14.17 (b) Except for permissible investments enumerated in section 53B.62, paragraph (a)
472		-	14.18subdivision 1, clause (1), the commissioner may by administrative rule or order, with respect
473		-	14.19to any licensee, limit the extent to which a specific investment maintained by a licensee
474		-	14.20within a class of permissible investments may be considered a permissible investment, if
475		-	14.21the specific investment represents undue risk to customers not reflected in the market value
476		-	14.22of investments.
477		-	14.23 (c) Permissible investments, even if commingled with other assets of the licensee, are
478		-	14.24held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
479		-	14.25transmission obligations in the event of insolvency; the filing of a petition by or against the
480		-	14.26licensee under the United States Bankruptcy Code, United States Code, title 11, sections
481		-	14.27101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
482		-	14.28the filing of a petition by or against the licensee for receivership; the commencement of any
483		-	14.29other judicial or administrative proceeding for the licensee's dissolution or reorganization;
484		-	14.30or in the event of an action by a creditor against the licensee who is not a beneficiary of this
485		-	14.31statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
486		-	14.32are subject to attachment, levy of execution, or sequestration by order of any court, except
487		-	14.33for a beneficiary of the statutory trust.
	451	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 14.1 Sec. 6. Minnesota Statutes 2024, section 53B.61, is amended to read:
	452	+	14.2 53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.
	453	+	14.3 (a) A licensee must maintain at all times permissible investments that have a market
	454	+	14.4value computed in accordance with United States generally accepted accounting principles
	455	+	14.5of not less than the aggregate amount of all of the licensee's outstanding money transmission
	456	+	14.6obligations.
	457	+	14.7 (b) Except for permissible investments enumerated in section 53B.62, paragraph (a)
	458	+	14.8subdivision 1, clause (1), the commissioner may by administrative rule or order, with respect
	459	+	14.9to any licensee, limit the extent to which a specific investment maintained by a licensee
	460	+	14.10within a class of permissible investments may be considered a permissible investment, if
	461	+	14.11the specific investment represents undue risk to customers not reflected in the market value
	462	+	14.12of investments.
	463	+	14.13 (c) Permissible investments, even if commingled with other assets of the licensee, are
	464	+	14.14held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
	465	+	14.15transmission obligations in the event of insolvency; the filing of a petition by or against the
	466	+	14.16licensee under the United States Bankruptcy Code, United States Code, title 11, sections
	467	+	14.17101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
	468	+	14.18the filing of a petition by or against the licensee for receivership; the commencement of any
	469	+	14.19other judicial or administrative proceeding for the licensee's dissolution or reorganization;
	470	+	14.20or in the event of an action by a creditor against the licensee who is not a beneficiary of this
	471	+	14.21statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
	472	+	14.22are subject to attachment, levy of execution, or sequestration by order of any court, except
	473	+	14.23for a beneficiary of the statutory trust.
	474	+	14.24 (d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
	475	+	14.25any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
	476	+	14.26(4), the commissioner must notify the applicable regulator of each state in which the licensee
	477	+	14.27is licensed to engage in money transmission, if any, of the establishment of the trust or the
	478	+	14.28funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
	479	+	14.29pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
	480	+	14.30any other permissible investments held in trust for the benefit of the purchasers and holders
	481	+	14.31of the licensee's outstanding money transmission obligations, are deemed held in trust for
	482	+	14.32the benefit of the purchasers and holders of the licensee's outstanding money transmission
	483	+	14.33obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
	484	+	14.34permissible investments are required to be held in Minnesota and other states, as defined
488	485		14Article 2 Sec. 6.
489		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 15.1 (d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
490		-	15.2any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
491		-	15.3(4), the commissioner must notify the applicable regulator of each state in which the licensee
492		-	15.4is licensed to engage in money transmission, if any, of the establishment of the trust or the
493		-	15.5funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
494		-	15.6pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
495		-	15.7any other permissible investments held in trust for the benefit of the purchasers and holders
496		-	15.8of the licensee's outstanding money transmission obligations, are deemed held in trust for
497		-	15.9the benefit of the purchasers and holders of the licensee's outstanding money transmission
498		-	15.10obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
499		-	15.11permissible investments are required to be held in Minnesota and other states, as defined
500		-	15.12by a substantially similar statute in the other state. Any statutory trust established under this
501		-	15.13section terminates upon extinguishment of all of the licensee's outstanding money
502		-	15.14transmission obligations.
503		-	15.15 (e) The commissioner may by rule or by order allow other types of investments that the
504		-	15.16commissioner determines are of sufficient liquidity and quality to be a permissible
505		-	15.17investment. The commissioner is authorized to participate in efforts with other state regulators
506		-	15.18to determine that other types of investments are of sufficient liquidity and quality to be a
507		-	15.19permissible investment.
508		-	15.20Sec. 7. Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
509		-	15.21read:
510		-	15.22 Subd. 3.Safe deposit lease; automatic renewal.A safe deposit lease may renew
511		-	15.23automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
512		-	15.24at any time in writing or in any other manner described in the lease.
513		-	15.25Sec. 8. Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:
514		-	15.26 Subd. 8a.Lender."Lender" means an entity engaged in the business of securing, making,
515		-	15.27or extending student loans. Lender does not include, to the extent that state regulation is
516		-	15.28preempted by federal law:
517		-	15.29 (1) a bank, savings banks, savings and loan association, or credit union;
518		-	15.30 (2) a wholly owned subsidiary of a bank or credit union;
519		-	15.31 (3) an operating subsidiary where each owner is wholly owned by the same bank or
520		-	15.32credit union;
	486	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 15.1by a substantially similar statute in the other state. Any statutory trust established under this
	487	+	15.2section terminates upon extinguishment of all of the licensee's outstanding money
	488	+	15.3transmission obligations.
	489	+	15.4 (e) The commissioner may by rule or by order allow other types of investments that the
	490	+	15.5commissioner determines are of sufficient liquidity and quality to be a permissible
	491	+	15.6investment. The commissioner is authorized to participate in efforts with other state regulators
	492	+	15.7to determine that other types of investments are of sufficient liquidity and quality to be a
	493	+	15.8permissible investment.
	494	+	15.9 Sec. 7. Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
	495	+	15.10read:
	496	+	15.11 Subd. 3.Safe deposit lease; automatic renewal.A safe deposit lease may renew
	497	+	15.12automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
	498	+	15.13at any time in writing or in any other manner described in the lease.
	499	+	15.14Sec. 8. Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:
	500	+	15.15 Subd. 8a.Lender."Lender" means an entity engaged in the business of securing, making,
	501	+	15.16or extending student loans. Lender does not include, to the extent that state regulation is
	502	+	15.17preempted by federal law:
	503	+	15.18 (1) a bank, savings banks, savings and loan association, or credit union;
	504	+	15.19 (2) a wholly owned subsidiary of a bank or credit union;
	505	+	15.20 (3) an operating subsidiary where each owner is wholly owned by the same bank or
	506	+	15.21credit union;
	507	+	15.22 (4) the United States government, through Title IV of the Higher Education Act of 1965,
	508	+	15.23as amended, and administered by the United States Department of Education;
	509	+	15.24 (5) an agency, instrumentality, or political subdivision of Minnesota;
	510	+	15.25 (6) a regulated lender organized under chapter 56, except that a regulated lender must
	511	+	15.26file the annual report required for lenders under section 58B.03, subdivision 11 10; or
	512	+	15.27 (7) a person who is not in the business of making student loans and who makes no more
	513	+	15.28than three student loans, with the person's own funds, during any 12-month period.
521	514		15Article 2 Sec. 8.
522		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 16.1 (4) the United States government, through Title IV of the Higher Education Act of 1965,
523		-	16.2as amended, and administered by the United States Department of Education;
524		-	16.3 (5) an agency, instrumentality, or political subdivision of Minnesota;
525		-	16.4 (6) a regulated lender organized under chapter 56, except that a regulated lender must
526		-	16.5file the annual report required for lenders under section 58B.03, subdivision 11 10; or
527		-	16.6 (7) a person who is not in the business of making student loans and who makes no more
528		-	16.7than three student loans, with the person's own funds, during any 12-month period.
529		-	16.8 Sec. 9. Minnesota Statutes 2024, section 58B.051, is amended to read:
530		-	16.9 58B.051 REGISTRATION FOR LENDERS.
531		-	16.10 (a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
532		-	16.11before providing services in Minnesota. A lender must not offer or make a student loan to
533		-	16.12a resident of Minnesota without first registering with the commissioner as provided in this
534		-	16.13section.
535		-	16.14 (b) A registration application must include:
536		-	16.15 (1) the lender's name;
537		-	16.16 (2) the lender's address;
538		-	16.17 (3) the names of all officers, directors, owners, or other persons in control of an applicant,
539		-	16.18as defined in section 58B.02, subdivision 6; and
540		-	16.19 (4) any other information the commissioner requires by rule.
541		-	16.20 (c) Registration issued or renewed expires December 31 of each year. A lender must
542		-	16.21renew the lender's registration on an annual basis.
543		-	16.22 (d) The commissioner may adopt and enforce:
544		-	16.23 (1) registration procedures for lenders, which may include using the Nationwide
545		-	16.24Multistate Licensing System and Registry;
546		-	16.25 (2) nonrefundable registration fees for lenders, which may include fees for using the
547		-	16.26Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;
548		-	16.27 (3) procedures and nonrefundable fees to renew a lender's registration, which may include
549		-	16.28fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be
550		-	16.29paid directly by the lender; and
551		-	16Article 2 Sec. 9.
552		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 17.1 (4) alternate registration procedures and nonrefundable fees for postsecondary education
553		-	17.2institutions that offer student loans.
554		-	17.3 Sec. 10. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:
555		-	17.4 Subd. 2.Registration application and renewal filing fee.Every applicant for an initial
556		-	17.5or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in
557		-	17.6the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an
558		-	17.7investment adviser representative. When an application is denied or withdrawn, the filing
559		-	17.8fee shall be retained. A registered agent who has terminated employment with one
560		-	17.9broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
561		-	17.10fee of $25 $85.
562		-	17.11Sec. 11. Minnesota Statutes 2024, section 80A.66, is amended to read:
563		-	17.12 80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
564		-	17.13 (a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
565		-	17.14of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
566		-	17.15(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
567		-	17.16minimum financial requirements for broker-dealers registered or required to be registered
568		-	17.17under this chapter and investment advisers registered or required to be registered under this
569		-	17.18chapter.
570		-	17.19 (b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
571		-	17.20(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
572		-	17.21U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
573		-	17.22chapter and an investment adviser registered or required to be registered under this chapter
574		-	17.23shall file such financial reports as are required by a rule adopted or order issued under this
575		-	17.24chapter. If the information contained in a record filed under this subsection is or becomes
576		-	17.25inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
577		-	17.26amendment.
578		-	17.27 (c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
579		-	17.28(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
580		-	17.29U.S.C. Section 80b-22):
581		-	17.30 (1) a broker-dealer registered or required to be registered under this chapter and an
582		-	17.31investment adviser registered or required to be registered under this chapter shall make and
583		-	17Article 2 Sec. 11.
584		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 18.1maintain the accounts, correspondence, memoranda, papers, books, and other records
585		-	18.2required by rule adopted or order issued under this chapter;
586		-	18.3 (2) broker-dealer records required to be maintained under paragraph (1) may be
587		-	18.4maintained in any form of data storage acceptable under Section 17(a) of the Securities
588		-	18.5Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
589		-	18.6administrator; and
590		-	18.7 (3) investment adviser records required to be maintained under paragraph (d)(1) may
591		-	18.8be maintained in any form of data storage required by rule adopted or order issued under
592		-	18.9this chapter.
593		-	18.10 (d) Records and reports of private funds.
594		-	18.11 (1) In general. An investment adviser to a private fund shall maintain such records of,
595		-	18.12and file with the administrator such reports and amendments thereto, that an exempt reporting
596		-	18.13adviser is required to file with the Securities and Exchange Commission pursuant to SEC
597		-	18.14Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
598		-	18.15 (2) Treatment of records. The records and reports of any private fund to which an
599		-	18.16investment adviser provides investment advice shall be deemed to be the records and reports
600		-	18.17of the investment adviser.
601		-	18.18 (3) Required information. The records and reports required to be maintained by an
602		-	18.19investment adviser, which are subject to inspection by a representative of the administrator
603		-	18.20at any time, shall include for each private fund advised by the investment adviser, a
604		-	18.21description of:
605		-	18.22 (A) the amount of assets under management;
606		-	18.23 (B) the use of leverage, including off-balance-sheet leverage, as to the assets under
607		-	18.24management;
608		-	18.25 (C) counterparty credit risk exposure;
609		-	18.26 (D) trading and investment positions;
610		-	18.27 (E) valuation policies and practices of the fund;
611		-	18.28 (F) types of assets held;
612		-	18.29 (G) side arrangements or side letters, whereby certain investors in a fund obtain more
613		-	18.30favorable rights or entitlements than other investors;
614		-	18.31 (H) trading practices; and
615		-	18Article 2 Sec. 11.
616		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 19.1 (I) such other information as the administrator determines is necessary and appropriate
617		-	19.2in the public interest and for the protection of investors, which may include the establishment
618		-	19.3of different reporting requirements for different classes of fund advisers, based on the type
619		-	19.4or size of the private fund being advised.
620		-	19.5 (4) Filing of records. A rule or order under this chapter may require each investment
621		-	19.6adviser to a private fund to file reports containing such information as the administrator
622		-	19.7deems necessary and appropriate in the public interest and for the protection of investors.
623		-	19.8 (e) Audits or inspections. The records of a broker-dealer registered or required to be
624		-	19.9registered under this chapter and of an investment adviser registered or required to be
625		-	19.10registered under this chapter, including the records of a private fund described in paragraph
626		-	19.11(d) and the records of investment advisers to private funds, are subject to such reasonable
627		-	19.12periodic, special, or other audits or inspections by a representative of the administrator,
628		-	19.13within or without this state, as the administrator considers necessary or appropriate in the
629		-	19.14public interest and for the protection of investors. An audit or inspection may be made at
630		-	19.15any time and without prior notice. The administrator may copy, and remove for audit or
631		-	19.16inspection copies of, all records the administrator reasonably considers necessary or
632		-	19.17appropriate to conduct the audit or inspection. The administrator may assess a reasonable
633		-	19.18charge for conducting an audit or inspection under this subsection.
634		-	19.19 (f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
635		-	19.20of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
636		-	19.21Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
637		-	19.22under this chapter may require a broker-dealer or investment adviser that has custody of or
638		-	19.23discretionary authority over funds or securities of a customer or client to obtain insurance
639		-	19.24or post a bond or other satisfactory form of security in an amount of at least $25,000, but
640		-	19.25not to exceed $100,000. The administrator may determine the requirements of the insurance,
641		-	19.26bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
642		-	19.27of security may not be required of a broker-dealer registered under this chapter whose net
643		-	19.28capital exceeds, or of an investment adviser registered under this chapter whose minimum
644		-	19.29financial requirements exceed, the amounts required by rule or order under this chapter.
645		-	19.30The insurance, bond, or other satisfactory form of security must permit an action by a person
646		-	19.31to enforce any liability on the insurance, bond, or other satisfactory form of security if
647		-	19.32instituted within the time limitations in section 80A.76(j)(2).
648		-	19.33 (g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
649		-	19.34of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
650		-	19.35(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
651		-	19Article 2 Sec. 11.
652		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 20.1customer except under the supervision of a broker-dealer and an investment adviser
653		-	20.2representative may not have custody of funds or securities of a client except under the
654		-	20.3supervision of an investment adviser or a federal covered investment adviser. A rule adopted
655		-	20.4or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
656		-	20.5regarding custody of funds or securities of a customer and on an investment adviser regarding
657		-	20.6custody of securities or funds of a client.
658		-	20.7 (h) Investment adviser brochure rule. With respect to an investment adviser registered
659		-	20.8or required to be registered under this chapter, a rule adopted or order issued under this
660		-	20.9chapter may require that information or other record be furnished or disseminated to clients
661		-	20.10or prospective clients in this state as necessary or appropriate in the public interest and for
662		-	20.11the protection of investors and advisory clients.
663		-	20.12 (i) Continuing education. A rule adopted or order issued under this chapter may require
664		-	20.13an individual registered under section 80A.57 or 80A.58 to participate in a continuing
665		-	20.14education program approved by the Securities and Exchange Commission and administered
666		-	20.15by a self-regulatory organization, the North American Securities Administrators Association,
667		-	20.16or the commissioner.
668		-	20.17Sec. 12. APPLICATION OF MINNESOTA STATUTES, SECTION 65A.3025.
669		-	20.18 Minnesota Statutes, section 65A.3025, applies to policies issued or renewed on or after
670		-	20.19August 1, 2024. Minnesota Statutes, section 65A.3025, does not apply to policies issued or
671		-	20.20renewed prior to that date.
672		-	20.21 EFFECTIVE DATE.This section is effective retroactively from August 1, 2024.
673		-	20.22Sec. 13. CERTAIN COMPLIANCE OPTIONAL.
674		-	20.23 A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
675		-	20.24with respect to conventional loan mortgage documents dated between August 1, 2024, and
676		-	20.25July 31, 2025.
677		-	20.26 EFFECTIVE DATE.This section is effective retroactively from July 31, 2024.
678		-	20.27 ARTICLE 3
679		-	20.28 HEALTH INSURANCE
680		-	20.29Section 1. Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:
681		-	20.30 Subd. 1r.Community rate.(a) Each health maintenance organization, health service
682		-	20.31plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
683		-	20Article 3 Section 1.
684		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 21.1shall establish a separate community rate for that coverage. Beginning January 1, 1993, no
685		-	21.2Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
686		-	21.3except at the community rate required by this subdivision. The same community rate must
687		-	21.4apply to newly issued coverage and to renewal coverage.
688		-	21.5 (b) For coverage that supplements Medicare and for the Part A rate calculation for plans
689		-	21.6governed by section 1833 of the federal Social Security Act, United States Code, title 42,
690		-	21.7section 1395, et seq., the community rate may take into account only the following factors:
691		-	21.8 (1) actuarially valid differences in benefit designs or provider networks;
692		-	21.9 (2) geographic variations in rates if preapproved by the commissioner of commerce;
693		-	21.10and
694		-	21.11 (3) premium reductions in recognition of healthy lifestyle behaviors, including but not
695		-	21.12limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
696		-	21.13and must relate only to those healthy lifestyle behaviors that have a proven positive impact
697		-	21.14on health. Factors used by the health carrier making this premium reduction must be filed
698		-	21.15with and approved by the commissioner of commerce.; and
699		-	21.16 (4) premium increases in recognition of late enrollment or reenrollment.
700		-	21.17 (c) The premium increase permitted under paragraph (b), clause (4), must not exceed
701		-	21.18ten percent for each late enrollment or reenrollment. The increase must only be applied as
702		-	21.19a flat percentage of premium for an individual who: (1) enrolls in a Medicare supplement
703		-	21.20policy outside of the individual's initial enrollment period in Medicare Part B; and (2) is
704		-	21.21not eligible for a guaranteed issue period under subdivision 1u. Each premium increase
705		-	21.22permitted under paragraph (b), clause (4), may be applied for more than one plan year,
706		-	21.23including to renewals and reenrollments.
707		-	21.24 (d) For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey,
708		-	21.25Scott, or Washington County, a health plan may, at the option of the health carrier, phase
709		-	21.26in compliance under the following timetable:
710		-	21.27 (i) (1) a premium adjustment as of March 1, 1993, that consists of one-half of the
711		-	21.28difference between the community rate that would be applicable to the person as of March
712		-	21.291, 1993, and the premium rate that would be applicable to the person as of March 1, 1993,
713		-	21.30under the rate schedule permitted on December 31, 1992. A health plan may, at the option
714		-	21.31of the health carrier, implement the entire premium difference described in this clause for
715		-	21.32any person as of March 1, 1993, if the premium difference would be 15 percent or less of
716		-	21.33the premium rate that would be applicable to the person as of March 1, 1993, under the rate
	515	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 16.1 Sec. 9. Minnesota Statutes 2024, section 58B.051, is amended to read:
	516	+	16.2 58B.051 REGISTRATION FOR LENDERS.
	517	+	16.3 (a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
	518	+	16.4before providing services in Minnesota. A lender must not offer or make a student loan to
	519	+	16.5a resident of Minnesota without first registering with the commissioner as provided in this
	520	+	16.6section.
	521	+	16.7 (b) A registration application must include:
	522	+	16.8 (1) the lender's name;
	523	+	16.9 (2) the lender's address;
	524	+	16.10 (3) the names of all officers, directors, owners, or other persons in control of an applicant,
	525	+	16.11as defined in section 58B.02, subdivision 6; and
	526	+	16.12 (4) any other information the commissioner requires by rule.
	527	+	16.13 (c) Registration issued or renewed expires December 31 of each year. A lender must
	528	+	16.14renew the lender's registration on an annual basis.
	529	+	16.15 (d) The commissioner may adopt and enforce:
	530	+	16.16 (1) registration procedures for lenders, which may include using the Nationwide
	531	+	16.17Multistate Licensing System and Registry;
	532	+	16.18 (2) nonrefundable registration fees for lenders, which may include fees for using the
	533	+	16.19Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;
	534	+	16.20 (3) procedures and nonrefundable fees to renew a lender's registration, which may include
	535	+	16.21fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be
	536	+	16.22paid directly by the lender; and
	537	+	16.23 (4) alternate registration procedures and nonrefundable fees for postsecondary education
	538	+	16.24institutions that offer student loans.
	539	+	16.25Sec. 10. Minnesota Statutes 2024, section 60C.09, subdivision 2, is amended to read:
	540	+	16.26 Subd. 2.Further definition.In addition to subdivision 1, a covered claim does not
	541	+	16.27include:
	542	+	16.28 (1) claims by an affiliate of the insurer;
	543	+	16.29 (2) claims due a reinsurer, insurer, insurance pool, or underwriting association, as
	544	+	16.30subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise.
	545	+	16Article 2 Sec. 10.
	546	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 17.1This clause does not prevent a person from presenting the excluded claim to the insolvent
	547	+	17.2insurer or its liquidator, but the claims shall not be asserted against another person, including
	548	+	17.3the person to whom the benefits were paid or the insured of the insolvent insurer, except to
	549	+	17.4the extent that the claim is outside the coverage of the policy issued by the insolvent insurer;
	550	+	17.5and
	551	+	17.6 (3) any claims, resulting from insolvencies which occur after July 31, 1996, by an insured
	552	+	17.7whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which
	553	+	17.8the insurer becomes an insolvent insurer; provided that an insured's net worth on that date
	554	+	17.9shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries
	555	+	17.10and affiliates as calculated on a consolidated basis. The association may request financial
	556	+	17.11information from an insured to determine the insured's net worth under this clause. If an
	557	+	17.12insured fails to provide the requested financial information within 60 days of the date the
	558	+	17.13association submits a request, the insured's net worth is deemed to exceed $25,000,000 for
	559	+	17.14purposes of the association's evaluation of the claim under section 60C.10. A request by
	560	+	17.15the association to an insured seeking financial information under this clause must inform
	561	+	17.16the insured of the consequences of failing to provide the requested information;
	562	+	17.17 (4) any claims under a policy written by an insolvent insurer with a deductible or
	563	+	17.18self-insured retention of $300,000 or more, nor that portion of a claim that is within an
	564	+	17.19insured's deductible or self-insured retention; and
	565	+	17.20 (5) claims that are a fine, penalty, interest, or punitive or exemplary damages.
	566	+	17.21Sec. 11. Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:
	567	+	17.22 Subd. 4.Contract.Pursuant to a request for proposal, the commissioner of administration,
	568	+	17.23in consultation with the commissioners of health and commerce, shall must contract with
	569	+	17.24at least three organizations more than one organization or business entities entity to provide
	570	+	17.25independent external reviews of all adverse determinations submitted for external review.
	571	+	17.26The contract shall must ensure that the fees for services rendered in connection with the
	572	+	17.27reviews are reasonable.
	573	+	17.28Sec. 12. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:
	574	+	17.29 Subd. 2.Registration application and renewal filing fee.Every applicant for an initial
	575	+	17.30or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in
	576	+	17.31the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an
	577	+	17.32investment adviser representative. When an application is denied or withdrawn, the filing
	578	+	17.33fee shall be retained. A registered agent who has terminated employment with one
	579	+	17Article 2 Sec. 12.
	580	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 18.1broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
	581	+	18.2fee of $25 $60.
	582	+	18.3 Sec. 13. Minnesota Statutes 2024, section 80A.66, is amended to read:
	583	+	18.4 80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
	584	+	18.5 (a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
	585	+	18.6of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
	586	+	18.7(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
	587	+	18.8minimum financial requirements for broker-dealers registered or required to be registered
	588	+	18.9under this chapter and investment advisers registered or required to be registered under this
	589	+	18.10chapter.
	590	+	18.11 (b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
	591	+	18.12(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
	592	+	18.13U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
	593	+	18.14chapter and an investment adviser registered or required to be registered under this chapter
	594	+	18.15shall file such financial reports as are required by a rule adopted or order issued under this
	595	+	18.16chapter. If the information contained in a record filed under this subsection is or becomes
	596	+	18.17inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
	597	+	18.18amendment.
	598	+	18.19 (c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
	599	+	18.20(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
	600	+	18.21U.S.C. Section 80b-22):
	601	+	18.22 (1) a broker-dealer registered or required to be registered under this chapter and an
	602	+	18.23investment adviser registered or required to be registered under this chapter shall make and
	603	+	18.24maintain the accounts, correspondence, memoranda, papers, books, and other records
	604	+	18.25required by rule adopted or order issued under this chapter;
	605	+	18.26 (2) broker-dealer records required to be maintained under paragraph (1) may be
	606	+	18.27maintained in any form of data storage acceptable under Section 17(a) of the Securities
	607	+	18.28Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
	608	+	18.29administrator; and
	609	+	18.30 (3) investment adviser records required to be maintained under paragraph (d)(1) may
	610	+	18.31be maintained in any form of data storage required by rule adopted or order issued under
	611	+	18.32this chapter.
	612	+	18.33 (d) Records and reports of private funds.
	613	+	18Article 2 Sec. 13.
	614	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 19.1 (1) In general. An investment adviser to a private fund shall maintain such records of,
	615	+	19.2and file with the administrator such reports and amendments thereto, that an exempt reporting
	616	+	19.3adviser is required to file with the Securities and Exchange Commission pursuant to SEC
	617	+	19.4Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
	618	+	19.5 (2) Treatment of records. The records and reports of any private fund to which an
	619	+	19.6investment adviser provides investment advice shall be deemed to be the records and reports
	620	+	19.7of the investment adviser.
	621	+	19.8 (3) Required information. The records and reports required to be maintained by an
	622	+	19.9investment adviser, which are subject to inspection by a representative of the administrator
	623	+	19.10at any time, shall include for each private fund advised by the investment adviser, a
	624	+	19.11description of:
	625	+	19.12 (A) the amount of assets under management;
	626	+	19.13 (B) the use of leverage, including off-balance-sheet leverage, as to the assets under
	627	+	19.14management;
	628	+	19.15 (C) counterparty credit risk exposure;
	629	+	19.16 (D) trading and investment positions;
	630	+	19.17 (E) valuation policies and practices of the fund;
	631	+	19.18 (F) types of assets held;
	632	+	19.19 (G) side arrangements or side letters, whereby certain investors in a fund obtain more
	633	+	19.20favorable rights or entitlements than other investors;
	634	+	19.21 (H) trading practices; and
	635	+	19.22 (I) such other information as the administrator determines is necessary and appropriate
	636	+	19.23in the public interest and for the protection of investors, which may include the establishment
	637	+	19.24of different reporting requirements for different classes of fund advisers, based on the type
	638	+	19.25or size of the private fund being advised.
	639	+	19.26 (4) Filing of records. A rule or order under this chapter may require each investment
	640	+	19.27adviser to a private fund to file reports containing such information as the administrator
	641	+	19.28deems necessary and appropriate in the public interest and for the protection of investors.
	642	+	19.29 (e) Audits or inspections. The records of a broker-dealer registered or required to be
	643	+	19.30registered under this chapter and of an investment adviser registered or required to be
	644	+	19.31registered under this chapter, including the records of a private fund described in paragraph
	645	+	19.32(d) and the records of investment advisers to private funds, are subject to such reasonable
	646	+	19Article 2 Sec. 13.
	647	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 20.1periodic, special, or other audits or inspections by a representative of the administrator,
	648	+	20.2within or without this state, as the administrator considers necessary or appropriate in the
	649	+	20.3public interest and for the protection of investors. An audit or inspection may be made at
	650	+	20.4any time and without prior notice. The administrator may copy, and remove for audit or
	651	+	20.5inspection copies of, all records the administrator reasonably considers necessary or
	652	+	20.6appropriate to conduct the audit or inspection. The administrator may assess a reasonable
	653	+	20.7charge for conducting an audit or inspection under this subsection.
	654	+	20.8 (f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
	655	+	20.9of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
	656	+	20.10Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
	657	+	20.11under this chapter may require a broker-dealer or investment adviser that has custody of or
	658	+	20.12discretionary authority over funds or securities of a customer or client to obtain insurance
	659	+	20.13or post a bond or other satisfactory form of security in an amount of at least $25,000, but
	660	+	20.14not to exceed $100,000. The administrator may determine the requirements of the insurance,
	661	+	20.15bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
	662	+	20.16of security may not be required of a broker-dealer registered under this chapter whose net
	663	+	20.17capital exceeds, or of an investment adviser registered under this chapter whose minimum
	664	+	20.18financial requirements exceed, the amounts required by rule or order under this chapter.
	665	+	20.19The insurance, bond, or other satisfactory form of security must permit an action by a person
	666	+	20.20to enforce any liability on the insurance, bond, or other satisfactory form of security if
	667	+	20.21instituted within the time limitations in section 80A.76(j)(2).
	668	+	20.22 (g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
	669	+	20.23of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
	670	+	20.24(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
	671	+	20.25customer except under the supervision of a broker-dealer and an investment adviser
	672	+	20.26representative may not have custody of funds or securities of a client except under the
	673	+	20.27supervision of an investment adviser or a federal covered investment adviser. A rule adopted
	674	+	20.28or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
	675	+	20.29regarding custody of funds or securities of a customer and on an investment adviser regarding
	676	+	20.30custody of securities or funds of a client.
	677	+	20.31 (h) Investment adviser brochure rule. With respect to an investment adviser registered
	678	+	20.32or required to be registered under this chapter, a rule adopted or order issued under this
	679	+	20.33chapter may require that information or other record be furnished or disseminated to clients
	680	+	20.34or prospective clients in this state as necessary or appropriate in the public interest and for
	681	+	20.35the protection of investors and advisory clients.
	682	+	20Article 2 Sec. 13.
	683	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 21.1 (i) Continuing education. A rule adopted or order issued under this chapter may require
	684	+	21.2an individual registered under section 80A.57 or 80A.58 to participate in a continuing
	685	+	21.3education program approved by the Securities and Exchange Commission and administered
	686	+	21.4by a self-regulatory organization, the North American Securities Administrators Association,
	687	+	21.5or the commissioner.
	688	+	21.6 Sec. 14. APPLICATION OF MINNESOTA STATUTES, SECTION 65A.3025.
	689	+	21.7 Minnesota Statutes, section 65A.3025, applies to policies issued or renewed on or after
	690	+	21.8August 1, 2024. Minnesota Statutes, section 65A.3025, does not apply to policies issued or
	691	+	21.9renewed prior to that date.
	692	+	21.10 EFFECTIVE DATE.This section is effective retroactively from August 1, 2024.
	693	+	21.11Sec. 15. CERTAIN COMPLIANCE OPTIONAL.
	694	+	21.12 A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
	695	+	21.13with respect to conventional loan mortgage documents dated between August 1, 2024, and
	696	+	21.14July 31, 2025.
	697	+	21.15 EFFECTIVE DATE.This section is effective retroactively from July 31, 2024.
	698	+	21.16 ARTICLE 3
	699	+	21.17 HEALTH INSURANCE
	700	+	21.18Section 1. Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:
	701	+	21.19 Subd. 1r.Community rate.(a) Each health maintenance organization, health service
	702	+	21.20plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
	703	+	21.21shall establish a separate community rate for that coverage. Beginning January 1, 1993, no
	704	+	21.22Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
	705	+	21.23except at the community rate required by this subdivision. The same community rate must
	706	+	21.24apply to newly issued coverage and to renewal coverage.
	707	+	21.25 (b) For coverage that supplements Medicare and for the Part A rate calculation for plans
	708	+	21.26governed by section 1833 of the federal Social Security Act, United States Code, title 42,
	709	+	21.27section 1395, et seq., the community rate may take into account only the following factors:
	710	+	21.28 (1) actuarially valid differences in benefit designs or provider networks;
	711	+	21.29 (2) geographic variations in rates if preapproved by the commissioner of commerce;
	712	+	21.30and
717	713		21Article 3 Section 1.
718		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 22.1schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
719		-	22.2of whether the premium difference causes premiums to rise or to fall. The premium difference
720		-	22.3described in this clause is in addition to any premium adjustment attributable to medical
721		-	22.4cost inflation or any other lawful factor and is intended to describe only the premium
722		-	22.5difference attributable to the transition to the community rate; and
723		-	22.6 (ii) (2) with respect to any person whose premium adjustment was constrained under
724		-	22.7clause (i) (1), a premium adjustment as of January 1, 1994, that consists of the remaining
725		-	22.8one-half of the premium difference attributable to the transition to the community rate, as
726		-	22.9described in clause (i) (1).
727		-	22.10 (e) A health plan that initially follows the phase-in timetable may at any subsequent
728		-	22.11time comply on a more rapid timetable. A health plan that is in full compliance as of January
729		-	22.121, 1993, may not use the phase-in timetable and must remain in full compliance. Health
730		-	22.13plans that follow the phase-in timetable must charge the same premium rate for newly issued
731		-	22.14coverage that they charge for renewal coverage. A health plan whose premiums are
732		-	22.15constrained by paragraph (d), clause (i) (1), may take the constraint into account in
733		-	22.16establishing its community rate.
734		-	22.17 (f) From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
735		-	22.18option, charge the community rate under this paragraph or may instead charge premiums
736		-	22.19permitted as of December 31, 1992.
737		-	22.20Sec. 2. Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:
738		-	22.21 Subd. 1w.Open enrollment.A medicare supplement policy or certificate must not be
739		-	22.22sold or issued to an eligible individual outside of the time periods described in subdivision
740		-	22.23subdivisions 1h and 1u.
741		-	22.24 EFFECTIVE DATE.This section is effective August 1, 2026.
742		-	22.25Sec. 3. [62A.481] LIMITED LONG-TERM CARE INSURANCE.
743		-	22.26 Subdivision 1.Short title.This section may be known and cited as the "Limited
744		-	22.27Long-Term Care Insurance Act."
745		-	22.28 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
746		-	22.29meanings given.
747		-	22.30 (b) "Applicant" means:
748		-	22Article 3 Sec. 3.
749		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 23.1 (1) in the case of an individual limited long-term care insurance policy, the person who
750		-	23.2seeks to contract for benefits; or
751		-	23.3 (2) in the case of a group limited long-term care insurance policy, the proposed certificate
752		-	23.4holder.
753		-	23.5 (c) "Certificate" means a certificate issued under a group limited long-term care insurance
754		-	23.6policy that has been delivered or issued for delivery in Minnesota.
755		-	23.7 (d) "Commissioner" means the commissioner of commerce.
756		-	23.8 (e) "Elimination period" means the length of time between meeting the eligibility for
757		-	23.9benefit payment and receiving benefit payments from an insurer.
758		-	23.10 (f) "Group limited long-term care insurance" means a limited long-term care insurance
759		-	23.11policy that is delivered or issued for delivery in Minnesota and issued to:
760		-	23.12 (1) one or more employers or labor organizations, a trust or the trustees of a fund
761		-	23.13established by one or more employers, labor organizations, or a combination of employers
762		-	23.14and labor organizations for: (i) employees, former employees, or a combination of employees
763		-	23.15or former employees; or (ii) members, former members, or a combination of members or
764		-	23.16former members of the labor organizations;
765		-	23.17 (2) a professional, trade, or occupational association for the association's members,
766		-	23.18former members, retired members, or a combination of members, former members, or retired
767		-	23.19members, if the association:
768		-	23.20 (i) is composed of individuals, all of whom are or were actively engaged in the same
769		-	23.21profession, trade, or occupation; and
770		-	23.22 (ii) has been maintained in good faith for purposes other than obtaining insurance;
771		-	23.23 (3) an association, a trust, or the trustees of a fund established, created, or maintained
772		-	23.24for the benefit of members of one or more associations. Prior to advertising, marketing, or
773		-	23.25offering the policy within Minnesota, the association or associations, or the insurer of the
774		-	23.26association or associations, must file evidence with the commissioner that the association
775		-	23.27or associations have at the outset:
776		-	23.28 (i) a minimum of 100 persons;
777		-	23.29 (ii) been organized and maintained in good faith for purposes other than obtaining
778		-	23.30insurance;
779		-	23.31 (iii) been in active existence for at least one year; and
	714	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 22.1 (3) premium reductions in recognition of healthy lifestyle behaviors, including but not
	715	+	22.2limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
	716	+	22.3and must relate only to those healthy lifestyle behaviors that have a proven positive impact
	717	+	22.4on health. Factors used by the health carrier making this premium reduction must be filed
	718	+	22.5with and approved by the commissioner of commerce.; and
	719	+	22.6 (4) premium increases in recognition of late enrollment or reenrollment.
	720	+	22.7 (c) The premium increase permitted under paragraph (b), clause (4), must not exceed
	721	+	22.8ten percent for each late enrollment or reenrollment. The increase must only be applied as
	722	+	22.9a flat percentage of premium for an individual who: (1) enrolls in a Medicare supplement
	723	+	22.10policy outside of the individual's initial enrollment period in Medicare Part B; and (2) is
	724	+	22.11not eligible for a guaranteed issue period under subdivision 1u. Each premium increase
	725	+	22.12permitted under paragraph (b), clause (4), may be applied for more than one plan year,
	726	+	22.13including to renewals and reenrollments.
	727	+	22.14 (d) For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey,
	728	+	22.15Scott, or Washington County, a health plan may, at the option of the health carrier, phase
	729	+	22.16in compliance under the following timetable:
	730	+	22.17 (i) (1) a premium adjustment as of March 1, 1993, that consists of one-half of the
	731	+	22.18difference between the community rate that would be applicable to the person as of March
	732	+	22.191, 1993, and the premium rate that would be applicable to the person as of March 1, 1993,
	733	+	22.20under the rate schedule permitted on December 31, 1992. A health plan may, at the option
	734	+	22.21of the health carrier, implement the entire premium difference described in this clause for
	735	+	22.22any person as of March 1, 1993, if the premium difference would be 15 percent or less of
	736	+	22.23the premium rate that would be applicable to the person as of March 1, 1993, under the rate
	737	+	22.24schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
	738	+	22.25of whether the premium difference causes premiums to rise or to fall. The premium difference
	739	+	22.26described in this clause is in addition to any premium adjustment attributable to medical
	740	+	22.27cost inflation or any other lawful factor and is intended to describe only the premium
	741	+	22.28difference attributable to the transition to the community rate; and
	742	+	22.29 (ii) (2) with respect to any person whose premium adjustment was constrained under
	743	+	22.30clause (i) (1), a premium adjustment as of January 1, 1994, that consists of the remaining
	744	+	22.31one-half of the premium difference attributable to the transition to the community rate, as
	745	+	22.32described in clause (i) (1).
	746	+	22.33 (e) A health plan that initially follows the phase-in timetable may at any subsequent
	747	+	22.34time comply on a more rapid timetable. A health plan that is in full compliance as of January
	748	+	22Article 3 Section 1.
	749	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 23.11, 1993, may not use the phase-in timetable and must remain in full compliance. Health
	750	+	23.2plans that follow the phase-in timetable must charge the same premium rate for newly issued
	751	+	23.3coverage that they charge for renewal coverage. A health plan whose premiums are
	752	+	23.4constrained by paragraph (d), clause (i) (1), may take the constraint into account in
	753	+	23.5establishing its community rate.
	754	+	23.6 (f) From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
	755	+	23.7option, charge the community rate under this paragraph or may instead charge premiums
	756	+	23.8permitted as of December 31, 1992.
	757	+	23.9 Sec. 2. Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:
	758	+	23.10 Subd. 1w.Open enrollment.A medicare supplement policy or certificate must not be
	759	+	23.11sold or issued to an eligible individual outside of the time periods described in subdivision
	760	+	23.12subdivisions 1h and 1u.
	761	+	23.13Sec. 3. [62A.481] LIMITED LONG-TERM CARE INSURANCE.
	762	+	23.14 Subdivision 1.Short title.This section may be known and cited as the "Limited
	763	+	23.15Long-Term Care Insurance Act."
	764	+	23.16 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
	765	+	23.17meanings given.
	766	+	23.18 (b) "Applicant" means:
	767	+	23.19 (1) in the case of an individual limited long-term care insurance policy, the person who
	768	+	23.20seeks to contract for benefits; or
	769	+	23.21 (2) in the case of a group limited long-term care insurance policy, the proposed certificate
	770	+	23.22holder.
	771	+	23.23 (c) "Certificate" means a certificate issued under a group limited long-term care insurance
	772	+	23.24policy that has been delivered or issued for delivery in Minnesota.
	773	+	23.25 (d) "Commissioner" means the commissioner of commerce.
	774	+	23.26 (e) "Elimination period" means the length of time between meeting the eligibility for
	775	+	23.27benefit payment and receiving benefit payments from an insurer.
	776	+	23.28 (f) "Group limited long-term care insurance" means a limited long-term care insurance
	777	+	23.29policy that is delivered or issued for delivery in Minnesota and issued to:
780	778		23Article 3 Sec. 3.
781		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 24.1 (iv) a constitution and bylaws that provide:
782		-	24.2 (A) the association or associations hold regular meetings not less than annually to further
783		-	24.3purposes of the members;
784		-	24.4 (B) except for credit unions, the association or associations collect dues or solicit
785		-	24.5contributions from members; and
786		-	24.6 (C) the members have voting privileges and representation on the governing board and
787		-	24.7committees.
788		-	24.8Thirty days after the filing, the association or associations are deemed to satisfy the
789		-	24.9organizational requirements unless the commissioner makes a finding that the association
790		-	24.10or associations do not satisfy the organizational requirements; or
791		-	24.11 (4) a group other than a group described in clauses (1) to (3), subject to the commissioner
792		-	24.12finding that:
793		-	24.13 (i) issuing the policy is not contrary to the public interest;
794		-	24.14 (ii) issuing the policy results in acquisition or administrative economies; and
795		-	24.15 (iii) the policy's benefits are reasonable in relation to the premiums charged.
796		-	24.16 (g) "Limited long-term care insurance" means an insurance policy or rider:
797		-	24.17 (1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
798		-	24.18or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
799		-	24.19organization; or (vi) a similar organization, to the extent the organization is authorized to
800		-	24.20issue life or health insurance;
801		-	24.21 (2) advertised, marketed, offered, or designed to provide coverage for less than 12
802		-	24.22consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
803		-	24.23or other basis; and
804		-	24.24 (3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
805		-	24.25rehabilitative, maintenance, or personal care service provided in a setting other than a
806		-	24.26hospital's acute care unit.
807		-	24.27Limited long-term care insurance includes a policy or rider that provides for payment of
808		-	24.28benefits based upon cognitive impairment or the loss of functional capacity. Limited
809		-	24.29long-term care insurance does not include an insurance policy that is offered primarily to
810		-	24.30provide basic Medicare supplement coverage, basic hospital expense coverage, basic
811		-	24.31medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
	779	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 24.1 (1) one or more employers or labor organizations, a trust or the trustees of a fund
	780	+	24.2established by one or more employers, labor organizations, or a combination of employers
	781	+	24.3and labor organizations for: (i) employees, former employees, or a combination of employees
	782	+	24.4or former employees; or (ii) members, former members, or a combination of members or
	783	+	24.5former members of the labor organizations;
	784	+	24.6 (2) a professional, trade, or occupational association for the association's members,
	785	+	24.7former members, retired members, or a combination of members, former members, or retired
	786	+	24.8members, if the association:
	787	+	24.9 (i) is composed of individuals, all of whom are or were actively engaged in the same
	788	+	24.10profession, trade, or occupation; and
	789	+	24.11 (ii) has been maintained in good faith for purposes other than obtaining insurance;
	790	+	24.12 (3) an association, a trust, or the trustees of a fund established, created, or maintained
	791	+	24.13for the benefit of members of one or more associations. Prior to advertising, marketing, or
	792	+	24.14offering the policy within Minnesota, the association or associations, or the insurer of the
	793	+	24.15association or associations, must file evidence with the commissioner that the association
	794	+	24.16or associations have at the outset:
	795	+	24.17 (i) a minimum of 100 persons;
	796	+	24.18 (ii) been organized and maintained in good faith for purposes other than obtaining
	797	+	24.19insurance;
	798	+	24.20 (iii) been in active existence for at least one year; and
	799	+	24.21 (iv) a constitution and bylaws that provide:
	800	+	24.22 (A) the association or associations hold regular meetings not less than annually to further
	801	+	24.23purposes of the members;
	802	+	24.24 (B) except for credit unions, the association or associations collect dues or solicit
	803	+	24.25contributions from members; and
	804	+	24.26 (C) the members have voting privileges and representation on the governing board and
	805	+	24.27committees.
	806	+	24.28Thirty days after the filing, the association or associations are deemed to satisfy the
	807	+	24.29organizational requirements unless the commissioner makes a finding that the association
	808	+	24.30or associations do not satisfy the organizational requirements; or
	809	+	24.31 (4) a group other than a group described in clauses (1) to (3), subject to the commissioner
	810	+	24.32finding that:
812	811		24Article 3 Sec. 3.
813		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 25.1expense coverage, disability income or related asset-protection coverage, accident-only
814		-	25.2coverage, specified disease or specified accident coverage, or limited benefit health coverage.
815		-	25.3 (h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
816		-	25.4delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
817		-	25.5health, hospital, or medical service corporation; prepaid health plan; health maintenance
818		-	25.6organization; or any similar organization.
819		-	25.7 (i) "Waiting period" means the time an insured individual must wait before some or all
820		-	25.8of the insured individual's coverage becomes effective.
821		-	25.9 Subd. 3.Scope.(a) This section applies to policies delivered or issued for delivery in
822		-	25.10Minnesota on or after January 1, 2026. This section does not supersede an obligation that
823		-	25.11an entity subject to this section has to comply with other applicable insurance laws to the
824		-	25.12extent the other insurance laws do not conflict with this section, except that laws and
825		-	25.13regulations designed and intended to apply to Medicare supplement insurance policies must
826		-	25.14not be applied to limited long-term care insurance.
827		-	25.15 (b) Notwithstanding any other provision of this section, a product, policy, certificate, or
828		-	25.16rider advertised, marketed, or offered as limited long-term care insurance is subject to this
829		-	25.17section.
830		-	25.18 Subd. 4.Group limited long-term care insurance; extra-territorial jurisdiction.Group
831		-	25.19limited long-term care insurance coverage must not be offered to a Minnesota resident under
832		-	25.20a group policy issued in another state to a group described in subdivision 2, paragraph (f),
833		-	25.21clause (4), unless Minnesota or another state having statutory and regulatory limited
834		-	25.22long-term care insurance requirements substantially similar to those adopted in Minnesota
835		-	25.23makes a determination that the statutory and regulatory limited long-term care insurance
836		-	25.24requirements have been met.
837		-	25.25 Subd. 5.Limited long-term care insurance; disclosure and performance
838		-	25.26standards.(a) A limited long-term care insurance policy must not:
839		-	25.27 (1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
840		-	25.28certificate holder's age, gender, or deterioration of mental or physical health;
841		-	25.29 (2) contain a provision that establishes a new waiting period in the event existing coverage
842		-	25.30is converted to or replaced by a new or other form of coverage within the same company,
843		-	25.31except with respect to an increase in benefits voluntarily selected by the insured individual
844		-	25.32or group policyholder; or
	812	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 25.1 (i) issuing the policy is not contrary to the public interest;
	813	+	25.2 (ii) issuing the policy results in acquisition or administrative economies; and
	814	+	25.3 (iii) the policy's benefits are reasonable in relation to the premiums charged.
	815	+	25.4 (g) "Limited long-term care insurance" means an insurance policy or rider:
	816	+	25.5 (1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
	817	+	25.6or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
	818	+	25.7organization; or (vi) a similar organization, to the extent the organization is authorized to
	819	+	25.8issue life or health insurance;
	820	+	25.9 (2) advertised, marketed, offered, or designed to provide coverage for less than 12
	821	+	25.10consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
	822	+	25.11or other basis; and
	823	+	25.12 (3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
	824	+	25.13rehabilitative, maintenance, or personal care service provided in a setting other than a
	825	+	25.14hospital's acute care unit.
	826	+	25.15Limited long-term care insurance includes a policy or rider that provides for payment of
	827	+	25.16benefits based upon cognitive impairment or the loss of functional capacity. Limited
	828	+	25.17long-term care insurance does not include an insurance policy that is offered primarily to
	829	+	25.18provide basic Medicare supplement coverage, basic hospital expense coverage, basic
	830	+	25.19medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
	831	+	25.20expense coverage, disability income or related asset-protection coverage, accident-only
	832	+	25.21coverage, specified disease or specified accident coverage, or limited benefit health coverage.
	833	+	25.22 (h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
	834	+	25.23delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
	835	+	25.24health, hospital, or medical service corporation; prepaid health plan; health maintenance
	836	+	25.25organization; or any similar organization.
	837	+	25.26 (i) "Waiting period" means the time an insured individual must wait before some or all
	838	+	25.27of the insured individual's coverage becomes effective.
	839	+	25.28 Subd. 3.Scope.(a) This section applies to policies delivered or issued for delivery in
	840	+	25.29Minnesota on or after January 1, 2026. This section does not supersede an obligation that
	841	+	25.30an entity subject to this section has to comply with other applicable insurance laws to the
	842	+	25.31extent the other insurance laws do not conflict with this section, except that laws and
	843	+	25.32regulations designed and intended to apply to Medicare supplement insurance policies must
	844	+	25.33not be applied to limited long-term care insurance.
845	845		25Article 3 Sec. 3.
846		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 26.1 (3) provide coverage for only skilled nursing care or provide significantly more coverage
847		-	26.2for skilled nursing care in a facility than coverage provided for lower levels of care.
848		-	26.3 (b) A limited long-term care insurance policy or certificate issued to a group identified
849		-	26.4in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
850		-	26.5for preexisting condition that is more restrictive than or excludes a condition for which
851		-	26.6medical advice or treatment was recommended by or received from a health care services
852		-	26.7provider within the six months preceding the date an insured individual's coverage is
853		-	26.8effective; and (2) excluding coverage for a loss or confinement that is the result of a
854		-	26.9preexisting condition unless the loss or confinement begins within six months of the date
855		-	26.10an insured individual's coverage is effective. The commissioner may extend the limitation
856		-	26.11periods established in clauses (1) and (2) with respect to specific age group categories in
857		-	26.12specific policy forms upon a finding that the extension is in the public interest. The definition
858		-	26.13of preexisting condition required under clause (1) does not prohibit an insurer from using
859		-	26.14an application form designed to elicit the complete health history of an applicant and, on
860		-	26.15the basis of the applicant's answers on the application, from underwriting in accordance
861		-	26.16with that insurer's established underwriting standards. Unless otherwise provided in the
862		-	26.17policy or certificate, an insurer is not required to cover a preexisting condition, regardless
863		-	26.18of whether the preexisting condition is disclosed on the application, until the waiting period
864		-	26.19under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
865		-	26.20from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
866		-	26.21or benefits for specifically named or described preexisting diseases or physical conditions
867		-	26.22beyond the waiting period established in clause (2).
868		-	26.23 (c) A limited long-term care insurance policy must not be delivered or issued for delivery
869		-	26.24in Minnesota if the policy conditions eligibility: (1) for any benefits, on a prior hospitalization
870		-	26.25requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
871		-	26.26higher level of institutional care; or (3) for any benefits other than waiver of premium,
872		-	26.27post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
873		-	26.28requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
874		-	26.29from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
875		-	26.30of skilled care services.
876		-	26.31 (d) A limited long-term care insurance applicant has the right to: (1) return the policy,
877		-	26.32certificate, or rider to the company or the company's agent or insurance producer within 30
878		-	26.33days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
879		-	26.34if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
880		-	26.35policy, certificate, or rider for any reason.
	846	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 26.1 (b) Notwithstanding any other provision of this section, a product, policy, certificate, or
	847	+	26.2rider advertised, marketed, or offered as limited long-term care insurance is subject to this
	848	+	26.3section.
	849	+	26.4 Subd. 4.Group limited long-term care insurance; extra-territorial jurisdiction.Group
	850	+	26.5limited long-term care insurance coverage must not be offered to a Minnesota resident under
	851	+	26.6a group policy issued in another state to a group described in subdivision 2, paragraph (f),
	852	+	26.7clause (4), unless Minnesota or another state having statutory and regulatory limited
	853	+	26.8long-term care insurance requirements substantially similar to those adopted in Minnesota
	854	+	26.9makes a determination that the statutory and regulatory limited long-term care insurance
	855	+	26.10requirements have been met.
	856	+	26.11 Subd. 5.Limited long-term care insurance; disclosure and performance
	857	+	26.12standards.(a) A limited long-term care insurance policy must not:
	858	+	26.13 (1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
	859	+	26.14certificate holder's age, gender, or deterioration of mental or physical health;
	860	+	26.15 (2) contain a provision that establishes a new waiting period in the event existing coverage
	861	+	26.16is converted to or replaced by a new or other form of coverage within the same company,
	862	+	26.17except with respect to an increase in benefits voluntarily selected by the insured individual
	863	+	26.18or group policyholder; or
	864	+	26.19 (3) provide coverage for only skilled nursing care or provide significantly more coverage
	865	+	26.20for skilled nursing care in a facility than coverage provided for lower levels of care.
	866	+	26.21 (b) A limited long-term care insurance policy or certificate issued to a group identified
	867	+	26.22in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
	868	+	26.23for preexisting condition that is more restrictive than or excludes a condition for which
	869	+	26.24medical advice or treatment was recommended by or received from a health care services
	870	+	26.25provider within the six months preceding the date an insured individual's coverage is
	871	+	26.26effective; and (2) excluding coverage for a loss or confinement that is the result of a
	872	+	26.27preexisting condition unless the loss or confinement begins within six months of the date
	873	+	26.28an insured individual's coverage is effective. The commissioner may extend the limitation
	874	+	26.29periods established in clauses (1) and (2) with respect to specific age group categories in
	875	+	26.30specific policy forms upon a finding that the extension is in the public interest. The definition
	876	+	26.31of preexisting condition required under clause (1) does not prohibit an insurer from using
	877	+	26.32an application form designed to elicit the complete health history of an applicant and, on
	878	+	26.33the basis of the applicant's answers on the application, from underwriting in accordance
	879	+	26.34with that insurer's established underwriting standards. Unless otherwise provided in the
881	880		26Article 3 Sec. 3.
882		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 27.1 (e) A limited long-term care insurance policy, certificate, or rider must have a notice
883		-	27.2prominently printed on the first page or attached to the policy, certificate, or rider that
884		-	27.3includes specific instructions for a limited long-term care insurance applicant to return a
885		-	27.4policy, certificate, or rider under paragraph (d). The following statement or a substantially
886		-	27.5similar statement must be included with the instructions:
887		-	27.6 "You have 30 days from the date you receive this policy, certificate, or rider to review
888		-	27.7and return it to the company if you decide not to keep it. You do not have to tell the company
889		-	27.8why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
890		-	27.9return it to the company at the company's administrative office, or you may return it to the
891		-	27.10agent or insurance producer that you bought it from. You must return the policy, certificate,
892		-	27.11or rider within 30 days of the date you first received it. The company must refund the full
893		-	27.12amount of any premium paid within 30 days of the date the company receives the returned
894		-	27.13policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
895		-	27.14A returned policy, certificate, or rider is void, as if it never was issued."
896		-	27.15This paragraph does not apply to certificates issued pursuant to a policy issued to a group
897		-	27.16defined in subdivision 2, paragraph (f), clause (1).
898		-	27.17 (f) A coverage outline must be delivered to a prospective applicant for limited long-term
899		-	27.18care insurance at the time an initial solicitation is made, using a means that prominently
900		-	27.19directs the recipient's attention to the coverage outline and the coverage outline's purpose.
901		-	27.20The commissioner must prescribe: (1) a standard format, including style, arrangement, and
902		-	27.21overall appearance; and (2) the content that must be contained on a coverage outline. With
903		-	27.22respect to an agent solicitation, the agent must deliver the coverage outline before presenting
904		-	27.23an application or enrollment form. With respect to a direct response solicitation, the coverage
905		-	27.24outline must be provided in conjunction with an application or enrollment form. Delivery
906		-	27.25of a coverage outline is not required for a policy issued to a group defined in subdivision
907		-	27.262, paragraph (f), clause (1), if the information described in paragraph (g) is contained in
908		-	27.27other materials relating to enrollment. A copy of the other materials must be made available
909		-	27.28to the commissioner upon request.
910		-	27.29 (g) The coverage outline provided under paragraph (f) must include:
911		-	27.30 (1) a description of the principal benefits and coverage provided in the policy;
912		-	27.31 (2) a description of the eligibility triggers for benefits and how the eligibility triggers
913		-	27.32are met;
914		-	27.33 (3) a statement identifying the principal exclusions, reductions, and limitations contained
915		-	27.34in the policy;
	881	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 27.1policy or certificate, an insurer is not required to cover a preexisting condition, regardless
	882	+	27.2of whether the preexisting condition is disclosed on the application, until the waiting period
	883	+	27.3under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
	884	+	27.4from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
	885	+	27.5or benefits for specifically named or described preexisting diseases or physical conditions
	886	+	27.6beyond the waiting period established in clause (2).
	887	+	27.7 (c) A limited long-term care insurance policy must not be delivered or issued for delivery
	888	+	27.8in Minnesota if the policy conditions eligibility: (1) for any benefits, on a prior hospitalization
	889	+	27.9requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
	890	+	27.10higher level of institutional care; or (3) for any benefits other than waiver of premium,
	891	+	27.11post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
	892	+	27.12requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
	893	+	27.13from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
	894	+	27.14of skilled care services.
	895	+	27.15 (d) A limited long-term care insurance applicant has the right to: (1) return the policy,
	896	+	27.16certificate, or rider to the company or the company's agent or insurance producer within 30
	897	+	27.17days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
	898	+	27.18if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
	899	+	27.19policy, certificate, or rider for any reason.
	900	+	27.20 (e) A limited long-term care insurance policy, certificate, or rider must have a notice
	901	+	27.21prominently printed on the first page or attached to the policy, certificate, or rider that
	902	+	27.22includes specific instructions for a limited long-term care insurance applicant to return a
	903	+	27.23policy, certificate, or rider under paragraph (d). The following statement or a substantially
	904	+	27.24similar statement must be included with the instructions:
	905	+	27.25 "You have 30 days from the date you receive this policy, certificate, or rider to review
	906	+	27.26and return it to the company if you decide not to keep it. You do not have to tell the company
	907	+	27.27why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
	908	+	27.28return it to the company at the company's administrative office, or you may return it to the
	909	+	27.29agent or insurance producer that you bought it from. You must return the policy, certificate,
	910	+	27.30or rider within 30 days of the date you first received it. The company must refund the full
	911	+	27.31amount of any premium paid within 30 days of the date the company receives the returned
	912	+	27.32policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
	913	+	27.33A returned policy, certificate, or rider is void, as if it never was issued."
916	914		27Article 3 Sec. 3.
917		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 28.1 (4) a statement describing the terms under which the policy, certificate, or both may be
918		-	28.2continued in force or discontinued, including any reservation in the policy of a right to
919		-	28.3change premium. A continuation or conversion provision for group coverage must be
920		-	28.4specifically described;
921		-	28.5 (5) a statement indicating that coverage outline is a summary only and not an insurance
922		-	28.6contract, and that the policy or group master policy contains the governing contractual
923		-	28.7provisions;
924		-	28.8 (6) a description of the terms under which the policy or certificate may be returned and
925		-	28.9premium refunded;
926		-	28.10 (7) a brief description of the relationship between cost of care and benefits; and
927		-	28.11 (8) a statement that discloses to the policyholder or certificate holder that the policy is
928		-	28.12not long-term care insurance.
929		-	28.13 (h) A certificate issued pursuant to a group limited long-term care insurance policy that
930		-	28.14is delivered or issued for delivery in Minnesota must include:
931		-	28.15 (1) a description of the principal benefits and coverage provided in the policy;
932		-	28.16 (2) a statement identifying the principal exclusions, reductions, and limitations contained
933		-	28.17in the policy; and
934		-	28.18 (3) a statement indicating that the group master policy determines governing contractual
935		-	28.19provisions.
936		-	28.20 (i) If an application for a limited long-term care insurance contract or certificate is
937		-	28.21approved, the issuer must deliver the contract or certificate of insurance to the applicant no
938		-	28.22later than 30 days after the date the application is approved.
939		-	28.23 (j) If a claim under a limited long-term care insurance contract is denied, the issuer must,
940		-	28.24within 60 days of the date the policyholder, certificate holder, or a representative of the
941		-	28.25policyholder or certificate holder submits a written request:
942		-	28.26 (1) provide a written explanation detailing the reasons for the denial; and
943		-	28.27 (2) make available all information directly related to the denial.
944		-	28.28 (k) A disclosure, statement, or written information and explanation required in this
945		-	28.29section, whether in print or electronic form, must accommodate the communication needs
946		-	28.30of individuals with disabilities and persons with limited English proficiency, as required by
947		-	28.31law.
	915	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 28.1This paragraph does not apply to certificates issued pursuant to a policy issued to a group
	916	+	28.2defined in subdivision 2, paragraph (f), clause (1).
	917	+	28.3 (f) A coverage outline must be delivered to a prospective applicant for limited long-term
	918	+	28.4care insurance at the time an initial solicitation is made, using a means that prominently
	919	+	28.5directs the recipient's attention to the coverage outline and the coverage outline's purpose.
	920	+	28.6The commissioner must prescribe: (1) a standard format, including style, arrangement, and
	921	+	28.7overall appearance; and (2) the content that must be contained on a coverage outline. With
	922	+	28.8respect to an agent solicitation, the agent must deliver the coverage outline before presenting
	923	+	28.9an application or enrollment form. With respect to a direct response solicitation, the coverage
	924	+	28.10outline must be provided in conjunction with an application or enrollment form. Delivery
	925	+	28.11of a coverage outline is not required for a policy issued to a group defined in subdivision
	926	+	28.122, paragraph (f), clause (1), if the information described in paragraph (g) is contained in
	927	+	28.13other materials relating to enrollment. A copy of the other materials must be made available
	928	+	28.14to the commissioner upon request.
	929	+	28.15 (g) The coverage outline provided under paragraph (f) must include:
	930	+	28.16 (1) a description of the principal benefits and coverage provided in the policy;
	931	+	28.17 (2) a description of the eligibility triggers for benefits and how the eligibility triggers
	932	+	28.18are met;
	933	+	28.19 (3) a statement identifying the principal exclusions, reductions, and limitations contained
	934	+	28.20in the policy;
	935	+	28.21 (4) a statement describing the terms under which the policy, certificate, or both may be
	936	+	28.22continued in force or discontinued, including any reservation in the policy of a right to
	937	+	28.23change premium. A continuation or conversion provision for group coverage must be
	938	+	28.24specifically described;
	939	+	28.25 (5) a statement indicating that coverage outline is a summary only and not an insurance
	940	+	28.26contract, and that the policy or group master policy contains the governing contractual
	941	+	28.27provisions;
	942	+	28.28 (6) a description of the terms under which the policy or certificate may be returned and
	943	+	28.29premium refunded;
	944	+	28.30 (7) a brief description of the relationship between cost of care and benefits; and
	945	+	28.31 (8) a statement that discloses to the policyholder or certificate holder that the policy is
	946	+	28.32not long-term care insurance.
948	947		28Article 3 Sec. 3.
949		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 29.1 Subd. 6.Incontestability period.(a) An insurer may (1) rescind a limited long-term
950		-	29.2care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
951		-	29.3insurance claim, for a policy or certificate that has been in force for less than six months
952		-	29.4upon a showing of misrepresentation that is material to the coverage acceptance.
953		-	29.5 (b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
954		-	29.6or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
955		-	29.7certificate that has been in force for at least six months but less than two years upon a
956		-	29.8showing of misrepresentation that is both material to the coverage acceptance and that
957		-	29.9pertains to the condition for which benefits are sought.
958		-	29.10 (c) A policy or certificate that has been in force for two years is not contestable upon
959		-	29.11the grounds of misrepresentation alone. A policy or certificate that has been in force for
960		-	29.12two years may be contested only upon a showing that the insured knowingly and intentionally
961		-	29.13misrepresented relevant facts relating to the insured individual's health.
962		-	29.14 (d) A limited long-term care insurance policy or certificate may be field issued if
963		-	29.15compensation to the field issuer is not based on the number of policies or certificates issued.
964		-	29.16For purposes of this paragraph, "field issued" means a policy or certificate issued by a
965		-	29.17producer or a third-party administrator (1) pursuant to the underwriting authority granted
966		-	29.18to the producer or third-party administrator by an insurer, and (2) using the insurer's
967		-	29.19underwriting guidelines.
968		-	29.20 (e) If an insurer paid benefits under the limited long-term care insurance policy or
969		-	29.21certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
970		-	29.22is rescinded.
971		-	29.23 Subd. 7.Nonforfeiture benefits.(a) A limited long-term care insurance policy may
972		-	29.24offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
973		-	29.25nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
974		-	29.26the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
975		-	29.27must provide a contingent benefit upon lapse that must be available for a specified period
976		-	29.28of time after a substantial increase in premium rates, as determined by the commissioner
977		-	29.29under paragraph (c).
978		-	29.30 (b) When a group limited long-term care insurance policy is issued, a nonforfeiture
979		-	29.31benefit offer must be made to the group policyholder. If the policy is issued as group limited
980		-	29.32long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
981		-	29.33other than a continuing care retirement community or other similar entity, a nonforfeiture
982		-	29.34benefit offer must be made to each proposed certificate holder.
	948	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 29.1 (h) A certificate issued pursuant to a group limited long-term care insurance policy that
	949	+	29.2is delivered or issued for delivery in Minnesota must include:
	950	+	29.3 (1) a description of the principal benefits and coverage provided in the policy;
	951	+	29.4 (2) a statement identifying the principal exclusions, reductions, and limitations contained
	952	+	29.5in the policy; and
	953	+	29.6 (3) a statement indicating that the group master policy determines governing contractual
	954	+	29.7provisions.
	955	+	29.8 (i) If an application for a limited long-term care insurance contract or certificate is
	956	+	29.9approved, the issuer must deliver the contract or certificate of insurance to the applicant no
	957	+	29.10later than 30 days after the date the application is approved.
	958	+	29.11 (j) If a claim under a limited long-term care insurance contract is denied, the issuer must,
	959	+	29.12within 60 days of the date the policyholder, certificate holder, or a representative of the
	960	+	29.13policyholder or certificate holder submits a written request:
	961	+	29.14 (1) provide a written explanation detailing the reasons for the denial; and
	962	+	29.15 (2) make available all information directly related to the denial.
	963	+	29.16 (k) A disclosure, statement, or written information and explanation required in this
	964	+	29.17section, whether in print or electronic form, must accommodate the communication needs
	965	+	29.18of individuals with disabilities and persons with limited English proficiency, as required by
	966	+	29.19law.
	967	+	29.20 Subd. 6.Incontestability period.(a) An insurer may (1) rescind a limited long-term
	968	+	29.21care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
	969	+	29.22insurance claim, for a policy or certificate that has been in force for less than six months
	970	+	29.23upon a showing of misrepresentation that is material to the coverage acceptance.
	971	+	29.24 (b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
	972	+	29.25or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
	973	+	29.26certificate that has been in force for at least six months but less than two years upon a
	974	+	29.27showing of misrepresentation that is both material to the coverage acceptance and that
	975	+	29.28pertains to the condition for which benefits are sought.
	976	+	29.29 (c) A policy or certificate that has been in force for two years is not contestable upon
	977	+	29.30the grounds of misrepresentation alone. A policy or certificate that has been in force for
	978	+	29.31two years may be contested only upon a showing that the insured knowingly and intentionally
	979	+	29.32misrepresented relevant facts relating to the insured individual's health.
983	980		29Article 3 Sec. 3.
984		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 30.1 ~~Subd. 8.Severability.If any provision of this section~~ or ~~the application of the provision~~
985		-	30.~~2to any person~~ or ~~circumstance is held invalid for any reason, the remainder of the section~~
986		-	30.~~3and the application~~ of ~~the invalid provision to other persons~~ or ~~circumstances is not affected.~~
987		-	30.~~4 Subd.~~ ~~9.Penalties.In addition~~ to ~~any other penalties provided by~~ the ~~laws of Minnesota,~~
988		-	30.~~5an insurer~~ or ~~producer that violates any requirement under this section or other law relating~~
989		-	30.~~6to the regulation of limited long-term care insurance or the marketing of limited long-term~~
990		-	30.~~7care~~ insurance ~~is subject to a fine of up to three times the amount of commissions paid for~~
991		-	30.~~8each~~ policy ~~involved in the violation~~ or ~~up to $10,000, whichever is greater.~~
992		-	30.~~9 EFFECTIVE DATE.This section is effective January 1, 2026~~.
993		-	30.~~10Sec~~. 4. ~~Minnesota Statutes 2024,~~ ~~section 62A.65, subdivision 1,~~ ~~is amended to read:~~
994		-	30.~~11 Subdivision 1~~.~~Applicability.No health carrier, as defined in section 62A.011, shall~~
995		-	30.~~12offer, sell,~~ ~~issue, or renew any individual health plan, as defined~~ in ~~section 62A.011,~~ to a
996		-	30.~~13Minnesota resident except in compliance with this section. This section~~ does not ~~apply to~~
997		-	30.~~14the Comprehensive Health Association established in section 62E.10.~~
998		-	30.~~15Sec. 5.~~ ~~Minnesota Statutes 2024~~, ~~section 62A.65, subdivision 2,~~ ~~is amended to read:~~
999		-	30.~~16 Subd~~. ~~2.Guaranteed renewal.(a) No individual health plan may be offered, sold,~~
1000		-	30.~~17issued, or renewed to~~ a ~~Minnesota resident unless the health plan provides that the plan~~ is
1001		-	30.~~18guaranteed renewable at a premium rate that does not take into account~~ the ~~claims experience~~
1002		-	30.~~19or any change~~ in ~~the health status of any covered person that occurred after the initial issuance~~
1003		-	30.~~20of the health plan to the person.~~ ~~The premium rate upon renewal must also otherwise comply~~
1004		-	30.~~21with this section. A health carrier~~ must ~~not refuse~~ to ~~renew an individual health plan, except~~
1005		-	30.~~22for nonpayment~~ of ~~premiums, fraud,~~ or ~~intentional misrepresentation~~ of ~~a material fact.~~
1006		-	30.~~23 (b) A health carrier may elect to discontinue health plan coverage~~ of ~~an individual in~~
1007		-	30.~~24the individual market only, in one or more~~ of the ~~following situations:~~
1008		-	30.25 ~~(1)~~ the ~~health carrier is ceasing to offer individual health plan coverage in the individual~~
1009		-	30.~~26market in accordance with sections 62A.65, subdivision 8,~~ ~~and 62E.11, subdivision 9,~~ ~~and~~
1010		-	30.~~27federal law;~~
1011		-	30.~~28 (2) for network plans,~~ the ~~individual no longer resides,~~ ~~lives, or works in the service~~
1012		-	30.~~29area of~~ the ~~health carrier,~~ or ~~the area for which the health carrier~~ is ~~authorized to do business,~~
1013		-	30.~~30but only if coverage~~ is ~~terminated uniformly without regard to any health-status-related~~
1014		-	30.~~31factor of covered individuals;~~ or
1015		-	30~~Article 3 Sec. 5.~~
1016		-	~~S2216-2 2nd EngrossmentSF2216 REVISOR RSI~~ ~~31.1 (3) a decision by the~~ health ~~carrier~~ to ~~discontinue offering~~ a ~~particular type of individual~~
1017		-	31.~~2health plan if it meets the following requirements:~~
1018		-	31.~~3 (i) provides notice~~ in ~~writing~~ to ~~each individual provided coverage of that type of health~~
1019		-	31.~~4plan at least 90 days before the date the coverage is discontinued;~~
1020		-	31.5 ~~(ii) provides notice~~ to ~~the department at least 30 business days before the issuer or health~~
1021		-	31.~~6carrier provides notice to the individuals under item (i);~~
1022		-	31.~~7 (iii) offers~~ to ~~each covered individual, on~~ a ~~guaranteed issue basis,~~ the ~~option to purchase~~
1023		-	31.~~8any other individual health plan currently being offered by~~ the ~~health carrier or related health~~
1024		-	31.~~9carrier for individuals~~ in that ~~market; and~~
1025		-	31.~~10 (iv) acts uniformly without regard~~ to ~~any health status-related~~ ~~factor of covered individuals~~
1026		-	31.~~11or dependents of covered individuals who may become eligible for coverage.~~
1027		-	31.~~12Sec. 6.~~ ~~Minnesota Statutes 2024~~, ~~section 62A.65~~, ~~is amended by adding~~ a ~~subdivision to~~
1028		-	31.~~13read:~~
1029		-	31.~~14 Subd.~~ ~~2a.Uniform modification~~ of ~~plan.(a) Only at~~ the ~~time of coverage renewal may~~
1030		-	31.~~15a~~ health carrier ~~modify the~~ health plan ~~for a product,~~ ~~as defined under Code of Federal~~
1031		-	31.~~16Regulations, title 45, section 144.103, offered to an individual~~ in ~~the individual market if~~
1032		-	31.~~17the modification is effective uniformly for all individuals with that product.~~
1033		-	31.18 (b) For ~~purposes of paragraph (a)~~, ~~modifications made uniformly and solely pursuant to~~
1034		-	31.~~19applicable federal~~ or ~~state requirements are considered a uniform modification of coverage~~
1035		-	31.~~20if:~~
1036		-	31.~~21 (1) the modification is made within a reasonable time period after the imposition~~ or
1037		-	31.~~22modification~~ of ~~the federal or state requirement; and~~
1038		-	31.~~23 (2)~~ the ~~modification is directly related to the imposition or modification of the federal~~
1039		-	31.~~24or state requirement.~~
1040		-	31.~~25 (c) Other types of modifications made uniformly are considered a uniform modification~~
1041		-	31.~~26of coverage if~~ the ~~health plan for~~ the ~~product in the individual market meets all of the~~
1042		-	31.~~27following criteria:~~
1043		-	31.28 (1) the ~~product is offered by the same health carrier;~~
1044		-	31.~~29 (2)~~ the ~~product is offered as the same product network type, which includes but is not~~
1045		-	31.~~30limited to a health maintenance organization,~~ ~~preferred provider organization, exclusive~~
1046		-	31.~~31provider organization,~~ ~~point~~ of ~~service, or indemnity;~~
1047		-	31~~Article 3 Sec.~~ 6.
1048		-	~~S2216-2 2nd Engrossment~~~~SF2216 REVISOR RSI 32.1 (3) the product continues to cover at least a majority of the same service area;~~
1049		-	32.~~2 (4) within the product~~, ~~each health plan has the same cost-sharing~~ ~~structure as before~~
1050		-	32.~~3the modification, except for any variation in cost sharing solely related to changes in cost~~
1051		-	32.~~4and utilization~~ of ~~medical care,~~ ~~or to maintain~~ the ~~same metal level,~~ ~~as defined in section~~
1052		-	32.~~562K.06~~, ~~subdivision 4;~~ ~~and~~
1053		-	32.~~6 (5)~~ the ~~product provides the same covered benefits, except for any changes in benefits~~
1054		-	32.~~7that cumulatively impact the plan-adjusted~~ ~~index rate as defined under Code of Federal~~
1055		-	32.~~8Regulations, title 45, section 144.103,~~ for ~~any health plan within the product within an~~
1056		-	32.~~9allowable variation~~ of ~~plus or minus two percentage points, not including changes pursuant~~
1057		-	32.~~10to applicable federal or state requirements.~~
1058		-	32.~~11Sec. 7.~~ ~~Minnesota Statutes 2024, section 62D.12, subdivision 2,~~ is ~~amended to read:~~
1059		-	32.~~12 Subd.~~ ~~2.Coverage cancellation~~; ~~nonrenewal.No health maintenance organization may~~
1060		-	32.~~13cancel~~ or ~~fail to renew~~ the ~~coverage of an enrollee except for (1) failure to pay the charge~~
1061		-	32.~~14for health care coverage; (2) termination of the health care plan subject to section 62A~~.~~65,~~
1062		-	32.~~15subdivisions 2 and 2a;~~ (3) ~~termination~~ of ~~the group plan;~~ ~~(4) enrollee moving out of the area~~
1063		-	32.~~16served, subject to section 62A.17, subdivisions 1 and 6,~~ ~~and section 62D.104; (5) enrollee~~
1064		-	32.~~17moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section~~
1065		-	32.~~1862D.104;~~ (6) ~~failure to make co-payments required by pay premiums as provided~~ by the
1066		-	32.~~19terms of~~ the ~~health care plan~~, ~~including timeliness requirements;~~ ~~(7) fraud or~~
1067		-	32.~~20misrepresentation by the enrollee with respect~~ to ~~eligibility for coverage or any other material~~
1068		-	32.~~21fact;~~ or ~~(8) other reasons established in rules promulgated by the commissioner of health.~~
1069		-	32.~~22Sec. 8.~~ ~~Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended~~ to ~~read:~~
1070		-	32.~~23 Subd.~~ ~~2a.Cancellation or nonrenewal notice.Enrollees shall be given 30 days'~~ ~~notice~~
1071		-	32.~~24of any cancellation or nonrenewal~~, except ~~that: (1) enrollees~~ in ~~a plan terminated under~~
1072		-	32.~~25section 62A.65~~, ~~subdivisions 2,~~ ~~paragraph (b), clause (3), and 2a, must receive~~ the ~~90 days'~~
1073		-	32.~~26notice required under section 62A~~.65, subdivision ~~2, paragraph (b), clause (3)~~; and ~~(2)~~
1074		-	32.~~27enrollees who are eligible to receive replacement coverage under section 62D.121,~~
1075		-	32.~~28subdivision 1,~~ ~~shall receive 90 days'~~ ~~notice~~ as ~~provided~~ under ~~section 62D.121, subdivision~~
1076		-	32.~~295~~.
1077		-	32.~~30Sec. 9.~~ ~~Minnesota Statutes 2024~~, ~~section 62D.121, subdivision 1, is amended to read:~~
1078		-	32.~~31 Subdivision 1~~.~~Replacement coverage.When membership of an enrollee who has~~
1079		-	32.~~32individual health coverage is terminated by the health maintenance organization for a reason~~
1080		-	32~~Article 3~~ Sec. 9.
1081		-	~~S2216-~~2 ~~2nd EngrossmentSF2216 REVISOR RSI 33~~.~~1other than (a) failure to pay the charge for~~ health ~~care coverage;~~ ~~(b) failure to make~~
1082		-	33.~~2co-payments required by~~ pay ~~premiums as provided by~~ the ~~terms of the health care plan,~~
1083		-	33.~~3including timeliness requirements~~; (c) ~~enrollee moving out~~ of the ~~area served;~~ ~~or (d) a~~
1084		-	33.~~4materially false statement or misrepresentation by~~ the enrollee in the ~~application for~~
1085		-	33.~~5membership~~, ~~the health maintenance organization must offer or arrange~~ to ~~offer replacement~~
1086		-	33.~~6coverage, without evidence~~ of ~~insurability~~, ~~without preexisting condition exclusions~~, and
1087		-	33.~~7without interruption of coverage.~~
1088		-	33.~~8 Sec.~~ ~~10. Minnesota Statutes 2024~~, ~~section 62J.26, subdivision 1,~~ ~~is amended to read:~~
1089		-	33.~~9 Subdivision 1.Definitions.(a)~~ For ~~purposes of this section,~~ ~~the following terms have~~
1090		-	33.~~10the meanings given unless~~ the ~~context otherwise requires:~~
1091		-	33.~~11 (1) "commissioner" means the commissioner of commerce;~~
1092		-	33.~~12 (2) "enrollee" has the meaning~~ given ~~in section 62Q.01, subdivision 2b;~~
1093		-	33.13 (3) ~~"health plan" means~~ a ~~health~~ plan ~~as defined in section 62A.011, subdivision 3, but~~
1094		-	33.~~14includes coverage listed in clauses~~ (7) and ~~(10) of that definition;~~
1095		-	33.15 (4) ~~"mandated health benefit proposal" or "proposal" means a proposal that would~~
1096		-	33.~~16statutorily require a health plan company~~ to ~~do the following:~~
1097		-	33.~~17 (i) provide coverage or increase the amount of coverage for the treatment of a particular~~
1098		-	33.~~18disease~~, ~~condition~~, ~~or other health care need;~~
1099		-	33.~~19 (ii) provide~~ coverage ~~or increase the amount~~ of ~~coverage of a particular type of health~~
1100		-	33.~~20care treatment or service or of equipment,~~ ~~supplies, or drugs used in connection with~~ a ~~health~~
1101		-	33.~~21care treatment or service~~; or
1102		-	33.~~22 (iii) provide coverage for~~ care ~~delivered by a specific type of provider; and~~
1103		-	33.23 (iv) ~~require a particular benefit design~~ or ~~impose conditions on cost-sharing for:~~
1104		-	33.~~24 (A)~~ the ~~treatment of a particular disease, condition, or other health care need;~~
1105		-	33.~~25 (B) a particular type of~~ health ~~care treatment~~ or ~~service; or~~
1106		-	33.~~26 (C) the provision~~ of ~~medical equipment~~, ~~supplies~~, ~~or a prescription drug used in~~
1107		-	33.~~27connection with treating a particular disease, condition, or other health care need; or~~
1108		-	33.~~28 (v) impose limits or conditions on a contract between a health plan company and a health~~
1109		-	33.~~29care provider~~.
1110		-	33.~~30 (5) "Minnesota~~ ~~public health care program"~~ ~~means a public health care program~~
1111		-	33.~~31administered by~~ the commissioner of ~~human services under chapters 256B and 256L.~~
	981	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 30.1 (d) A limited long-term care insurance policy or certificate may be field issued if
	982	+	30.2compensation to the field issuer is not based on the number of policies or certificates issued.
	983	+	30.3For purposes of this paragraph, "field issued" means a policy or certificate issued by a
	984	+	30.4producer or a third-party administrator (1) pursuant to the underwriting authority granted
	985	+	30.5to the producer or third-party administrator by an insurer, and (2) using the insurer's
	986	+	30.6underwriting guidelines.
	987	+	30.7 (e) If an insurer paid benefits under the limited long-term care insurance policy or
	988	+	30.8certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
	989	+	30.9is rescinded.
	990	+	30.10 Subd. 7.Nonforfeiture benefits.(a) A limited long-term care insurance policy may
	991	+	30.11offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
	992	+	30.12nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
	993	+	30.13the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
	994	+	30.14must provide a contingent benefit upon lapse that must be available for a specified period
	995	+	30.15of time after a substantial increase in premium rates, as determined by the commissioner
	996	+	30.16under paragraph (c).
	997	+	30.17 (b) When a group limited long-term care insurance policy is issued, a nonforfeiture
	998	+	30.18benefit offer must be made to the group policyholder. If the policy is issued as group limited
	999	+	30.19long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
	1000	+	30.20other than a continuing care retirement community or other similar entity, a nonforfeiture
	1001	+	30.21benefit offer must be made to each proposed certificate holder.
	1002	+	30.22 Subd. 8.Severability.If any provision of this section or the application of the provision
	1003	+	30.23to any person or circumstance is held invalid for any reason, the remainder of the section
	1004	+	30.24and the application of the invalid provision to other persons or circumstances is not affected.
	1005	+	30.25 Subd. 9.Penalties.In addition to any other penalties provided by the laws of Minnesota,
	1006	+	30.26an insurer or producer that violates any requirement under this section or other law relating
	1007	+	30.27to the regulation of limited long-term care insurance or the marketing of limited long-term
	1008	+	30.28care insurance is subject to a fine of up to three times the amount of commissions paid for
	1009	+	30.29each policy involved in the violation or up to $10,000, whichever is greater.
	1010	+	30.30 EFFECTIVE DATE.This section is effective January 1, 2026.
	1011	+	30.31Sec. 4. Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:
	1012	+	30.32 Subdivision 1.Applicability.No health carrier, as defined in section 62A.011, shall
	1013	+	30.33offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a
	1014	+	30Article 3 Sec. 4.
	1015	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 31.1Minnesota resident except in compliance with this section. This section does not apply to
	1016	+	31.2the Comprehensive Health Association established in section 62E.10.
	1017	+	31.3 Sec. 5. Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:
	1018	+	31.4 Subd. 2.Guaranteed renewal.(a) No individual health plan may be offered, sold,
	1019	+	31.5issued, or renewed to a Minnesota resident unless the health plan provides that the plan is
	1020	+	31.6guaranteed renewable at a premium rate that does not take into account the claims experience
	1021	+	31.7or any change in the health status of any covered person that occurred after the initial issuance
	1022	+	31.8of the health plan to the person. The premium rate upon renewal must also otherwise comply
	1023	+	31.9with this section. A health carrier must not refuse to renew an individual health plan, except
	1024	+	31.10for nonpayment of premiums, fraud, or intentional misrepresentation of a material fact.
	1025	+	31.11 (b) A health carrier may elect to discontinue health plan coverage of an individual in
	1026	+	31.12the individual market only, in one or more of the following situations:
	1027	+	31.13 (1) the health carrier is ceasing to offer individual health plan coverage in the individual
	1028	+	31.14market in accordance with sections 62A.65, subdivision 8, and 62E.11, subdivision 9, and
	1029	+	31.15federal law;
	1030	+	31.16 (2) for network plans, the individual no longer resides, lives, or works in the service
	1031	+	31.17area of the health carrier, or the area for which the health carrier is authorized to do business,
	1032	+	31.18but only if coverage is terminated uniformly without regard to any health-status-related
	1033	+	31.19factor of covered individuals; or
	1034	+	31.20 (3) a decision by the health carrier to discontinue offering a particular type of individual
	1035	+	31.21health plan if it meets the following requirements:
	1036	+	31.22 (i) provides notice in writing to each individual provided coverage of that type of health
	1037	+	31.23plan at least 90 days before the date the coverage is discontinued;
	1038	+	31.24 (ii) provides notice to the department at least 30 business days before the issuer or health
	1039	+	31.25carrier provides notice to the individuals under item (i);
	1040	+	31.26 (iii) offers to each covered individual, on a guaranteed issue basis, the option to purchase
	1041	+	31.27any other individual health plan currently being offered by the health carrier or related health
	1042	+	31.28carrier for individuals in that market; and
	1043	+	31.29 (iv) acts uniformly without regard to any health status-related factor of covered individuals
	1044	+	31.30or dependents of covered individuals who may become eligible for coverage.
	1045	+	31Article 3 Sec. 5.
	1046	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 32.1 Sec. 6. Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
	1047	+	32.2read:
	1048	+	32.3 Subd. 2a.Uniform modification of plan.(a) Only at the time of coverage renewal may
	1049	+	32.4a health carrier modify the health plan for a product, as defined under Code of Federal
	1050	+	32.5Regulations, title 45, section 144.103, offered to an individual in the individual market if
	1051	+	32.6the modification is effective uniformly for all individuals with that product.
	1052	+	32.7 (b) For purposes of paragraph (a), modifications made uniformly and solely pursuant to
	1053	+	32.8applicable federal or state requirements are considered a uniform modification of coverage
	1054	+	32.9if:
	1055	+	32.10 (1) the modification is made within a reasonable time period after the imposition or
	1056	+	32.11modification of the federal or state requirement; and
	1057	+	32.12 (2) the modification is directly related to the imposition or modification of the federal
	1058	+	32.13or state requirement.
	1059	+	32.14 (c) Other types of modifications made uniformly are considered a uniform modification
	1060	+	32.15of coverage if the health plan for the product in the individual market meets all of the
	1061	+	32.16following criteria:
	1062	+	32.17 (1) the product is offered by the same health carrier;
	1063	+	32.18 (2) the product is offered as the same product network type, which includes but is not
	1064	+	32.19limited to a health maintenance organization, preferred provider organization, exclusive
	1065	+	32.20provider organization, point of service, or indemnity;
	1066	+	32.21 (3) the product continues to cover at least a majority of the same service area;
	1067	+	32.22 (4) within the product, each health plan has the same cost-sharing structure as before
	1068	+	32.23the modification, except for any variation in cost sharing solely related to changes in cost
	1069	+	32.24and utilization of medical care, or to maintain the same metal level, as defined in section
	1070	+	32.2562K.06, subdivision 4; and
	1071	+	32.26 (5) the product provides the same covered benefits, except for any changes in benefits
	1072	+	32.27that cumulatively impact the plan-adjusted index rate as defined under Code of Federal
	1073	+	32.28Regulations, title 45, section 144.103, for any health plan within the product within an
	1074	+	32.29allowable variation of plus or minus two percentage points, not including changes pursuant
	1075	+	32.30to applicable federal or state requirements.
	1076	+	32Article 3 Sec. 6.
	1077	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 33.1 Sec. 7. Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:
	1078	+	33.2 Subd. 2.Coverage cancellation; nonrenewal.No health maintenance organization may
	1079	+	33.3cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
	1080	+	33.4for health care coverage; (2) termination of the health care plan subject to section 62A.65,
	1081	+	33.5subdivisions 2 and 2a; (3) termination of the group plan; (4) enrollee moving out of the area
	1082	+	33.6served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
	1083	+	33.7moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
	1084	+	33.862D.104; (6) failure to make co-payments required by pay premiums as provided by the
	1085	+	33.9terms of the health care plan, including timeliness requirements; (7) fraud or
	1086	+	33.10misrepresentation by the enrollee with respect to eligibility for coverage or any other material
	1087	+	33.11fact; or (8) other reasons established in rules promulgated by the commissioner of health.
	1088	+	33.12Sec. 8. Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:
	1089	+	33.13 Subd. 2a.Cancellation or nonrenewal notice.Enrollees shall be given 30 days' notice
	1090	+	33.14of any cancellation or nonrenewal, except that: (1) enrollees in a plan terminated under
	1091	+	33.15section 62A.65, subdivisions 2, clause (4), and 2a, must receive the 90 days' notice required
	1092	+	33.16under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2) enrollees who are
	1093	+	33.17eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive
	1094	+	33.1890 days' notice as provided under section 62D.121, subdivision 5.
	1095	+	33.19Sec. 9. Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:
	1096	+	33.20 Subdivision 1.Replacement coverage.When membership of an enrollee who has
	1097	+	33.21individual health coverage is terminated by the health maintenance organization for a reason
	1098	+	33.22other than (a) failure to pay the charge for health care coverage; (b) failure to make
	1099	+	33.23co-payments required by pay premiums as provided by the terms of the health care plan,
	1100	+	33.24including timeliness requirements; (c) enrollee moving out of the area served; or (d) a
	1101	+	33.25materially false statement or misrepresentation by the enrollee in the application for
	1102	+	33.26membership, the health maintenance organization must offer or arrange to offer replacement
	1103	+	33.27coverage, without evidence of insurability, without preexisting condition exclusions, and
	1104	+	33.28without interruption of coverage.
	1105	+	33.29Sec. 10. Minnesota Statutes 2024, section 62J.26, subdivision 1, is amended to read:
	1106	+	33.30 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
	1107	+	33.31the meanings given unless the context otherwise requires:
	1108	+	33.32 (1) "commissioner" means the commissioner of commerce;
1112	1109		33Article 3 Sec. 10.
1113		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 34.1 (b) "Mandated health benefit proposal" does not include health benefit proposals:
1114		-	34.2 (1) amending the scope of practice of a licensed health care professional; or
1115		-	34.3 (2) that make state law consistent with federal law; or
1116		-	34.4 (3) that apply exclusively to Minnesota public health care programs.
1117		-	34.5 Sec. 11. Minnesota Statutes 2024, section 62J.26, subdivision 2, is amended to read:
1118		-	34.6 Subd. 2.Evaluation process and content.(a) The commissioner, in consultation with
1119		-	34.7the commissioners of health, human services, and management and budget, must evaluate
1120		-	34.8all mandated health benefit proposals as provided under subdivision 3.
1121		-	34.9 (b) The purpose of the evaluation is to provide the legislature with a complete and timely
1122		-	34.10analysis of all ramifications of any mandated health benefit proposal. The evaluation must
1123		-	34.11include, in addition to other relevant information, the following to the extent applicable:
1124		-	34.12 (1) scientific and medical information on the mandated health benefit proposal, on the
1125		-	34.13potential for harm or benefit to the patient, and on the comparative benefit or harm from
1126		-	34.14alternative forms of treatment, and must include the results of at least one professionally
1127		-	34.15accepted and controlled trial comparing the medical consequences of the proposed therapy,
1128		-	34.16alternative therapy, and no therapy;
1129		-	34.17 (2) public health, economic, and fiscal impacts of the mandated health benefit proposal
1130		-	34.18on persons receiving health services in Minnesota, on persons receiving health services in
1131		-	34.19a Minnesota public health care program, on the relative cost-effectiveness of the proposal,
1132		-	34.20and on the health care system in general;
1133		-	34.21 (3) the extent to which the treatment, service, equipment, or drug is generally utilized
1134		-	34.22by a significant portion of the population and used in the Minnesota public health care
1135		-	34.23programs;
1136		-	34.24 (4) the extent to which insurance coverage for the mandated health benefit proposal is
1137		-	34.25already generally available and available in the Minnesota public health care programs;
1138		-	34.26 (5) the extent to which the mandated health benefit proposal, by health plan category,
1139		-	34.27would apply to the benefits offered to the health plan's enrollees and enrollees in the
1140		-	34.28Minnesota public health care programs;
1141		-	34.29 (6) the extent to which the mandated health benefit proposal will increase or decrease
1142		-	34.30the cost of the treatment, service, equipment, or drug;
	1110	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 34.1 (2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;
	1111	+	34.2 (3) "health plan" means a health plan as defined in section 62A.011, subdivision 3, but
	1112	+	34.3includes coverage listed in clauses (7) and (10) of that definition;
	1113	+	34.4 (4) "mandated health benefit proposal" or "proposal" means a proposal that would
	1114	+	34.5statutorily require a health plan company to do the following:
	1115	+	34.6 (i) provide coverage or increase the amount of coverage for the treatment of a particular
	1116	+	34.7disease, condition, or other health care need;
	1117	+	34.8 (ii) provide coverage or increase the amount of coverage of a particular type of health
	1118	+	34.9care treatment or service or of equipment, supplies, or drugs used in connection with a health
	1119	+	34.10care treatment or service; or
	1120	+	34.11 (iii) provide coverage for care delivered by a specific type of provider; and
	1121	+	34.12 (iv) require a particular benefit design or impose conditions on cost-sharing for:
	1122	+	34.13 (A) the treatment of a particular disease, condition, or other health care need;
	1123	+	34.14 (B) a particular type of health care treatment or service; or
	1124	+	34.15 (C) the provision of medical equipment, supplies, or a prescription drug used in
	1125	+	34.16connection with treating a particular disease, condition, or other health care need; or
	1126	+	34.17 (v) impose limits or conditions on a contract between a health plan company and a health
	1127	+	34.18care provider.
	1128	+	34.19 (5) "Minnesota public health care program" means a public health care program
	1129	+	34.20administered by the commissioner of human services under chapters 256B and 256L.
	1130	+	34.21 (b) "Mandated health benefit proposal" does not include health benefit proposals:
	1131	+	34.22 (1) amending the scope of practice of a licensed health care professional; or
	1132	+	34.23 (2) that make state law consistent with federal law; or
	1133	+	34.24 (3) that apply exclusively to Minnesota public health care programs.
	1134	+	34.25Sec. 11. Minnesota Statutes 2024, section 62J.26, subdivision 2, is amended to read:
	1135	+	34.26 Subd. 2.Evaluation process and content.(a) The commissioner, in consultation with
	1136	+	34.27the commissioners of health, human services, and management and budget, must evaluate
	1137	+	34.28all mandated health benefit proposals as provided under subdivision 3.
1143	1138		34Article 3 Sec. 11.
1144		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 35.1 (7) the extent to which the mandated health benefit proposal may increase enrollee
1145		-	35.2premiums; and
1146		-	35.3 (8) if the proposal applies to a qualified health plan as defined in section 62A.011,
1147		-	35.4subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
1148		-	35.5using commercial market reimbursement rates in accordance with Code of Federal
1149		-	35.6Regulations, title 45, section 155.170.
1150		-	35.7 (c) The commissioner shall consider actuarial analysis done by health plan companies
1151		-	35.8and any other proponent or opponent of the mandated health benefit proposal in determining
1152		-	35.9the cost of the proposal.
1153		-	35.10 (d) The commissioner must summarize the nature and quality of available information
1154		-	35.11on these issues, and, if possible, must provide preliminary information to the public. The
1155		-	35.12commissioner may conduct research on these issues or may determine that existing research
1156		-	35.13is sufficient to meet the informational needs of the legislature. The commissioner may seek
1157		-	35.14the assistance and advice of researchers, community leaders, or other persons or organizations
1158		-	35.15with relevant expertise. The commissioner must provide the public with at least 45 days'
1159		-	35.16notice when requesting information pursuant to this section. The commissioner must notify
1160		-	35.17the chief authors of a bill when a request for information is issued.
1161		-	35.18 (e) Information submitted to the commissioner pursuant to this section that meets the
1162		-	35.19definition of trade secret information, as defined in section 13.37, subdivision 1, paragraph
1163		-	35.20(b), is nonpublic data.
1164		-	35.21 (f) The commissioner must publish all evaluations conducted under this section on a
1165		-	35.22publicly available website within 30 days of the evaluation's completion.
1166		-	35.23Sec. 12. Minnesota Statutes 2024, section 62J.26, subdivision 3, is amended to read:
1167		-	35.24 Subd. 3.Requirements for evaluation.(a) No later than August 1 of the year preceding
1168		-	35.25the legislative session in which a an incumbent legislator is planning on introducing a bill
1169		-	35.26containing a mandated health benefit proposal, or is planning on offering an amendment to
1170		-	35.27a bill that adds a mandated health benefit, the prospective author must notify the chair of
1171		-	35.28one of the standing legislative committees that have jurisdiction over the subject matter of
1172		-	35.29the proposal. No later than 15 days after notification is received, the chair must notify the
1173		-	35.30commissioner that an evaluation of a mandated health benefit proposal is required to be
1174		-	35.31completed in accordance with this section in order to inform the legislature before any action
1175		-	35.32is taken on the proposal by either house of the legislature.
1176		-	35Article 3 Sec. 12.
1177		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 36.1 (b) The commissioner must conduct an evaluation described in subdivision 2 of each
1178		-	36.2mandated health benefit proposal for which an evaluation is required under paragraph (a).
1179		-	36.3 (c) If the evaluation of multiple proposals are required, the commissioner must consult
1180		-	36.4with the chairs of the standing legislative committees having jurisdiction over the subject
1181		-	36.5matter of the mandated health benefit proposals to prioritize the evaluations and establish
1182		-	36.6a reporting date for each proposal to be evaluated.
1183		-	36.7 (d) By December 31 of the year in which a mandated health benefit proposal, for which
1184		-	36.8an evaluation described in subdivision 2 has not been conducted, is enacted, the commissioner
1185		-	36.9must conduct an evaluation described in subdivision 2. The evaluation required by this
1186		-	36.10paragraph applies to mandated health benefit proposals:
1187		-	36.11 (1) introduced or offered by a legislator who was not seated by the deadline for
1188		-	36.12notification under paragraph (a);
1189		-	36.13 (2) enacted without conformity to paragraph (a); or
1190		-	36.14 (3) for which an evaluation was required under paragraph (b) but was not conducted.
1191		-	36.15Sec. 13. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
1192		-	36.16read:
1193		-	36.17 Subd. 6.Conformity.A mandated health benefit proposal enacted into law is effective
1194		-	36.18whether or not it is in conformity with this section.
1195		-	36.19Sec. 14. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
1196		-	36.20read:
1197		-	36.21 Subd. 7.Adoption of forms.(a) The commissioner of commerce must adopt forms, by
1198		-	36.22July 1, 2026, for the following:
1199		-	36.23 (1) an incumbent legislator to notify the chair of the mandated health benefit proposal
1200		-	36.24under subdivision 3, paragraph (a); and
1201		-	36.25 (2) the chair to notify the commissioner of the mandated health benefit proposal under
1202		-	36.26subdivision 3, paragraph (a).
1203		-	36.27 (b) The forms adopted under this subdivision must include all information needed from
1204		-	36.28the legislator introducing or offering the mandated health benefit proposal for the
1205		-	36.29commissioner to conduct the required evaluation.
1206		-	36Article 3 Sec. 14.
1207		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 37.1 Sec. 15. Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:
1208		-	37.2 Subd. 4.Contract.Pursuant to a request for proposal, the commissioner of administration,
1209		-	37.3in consultation with the commissioners of health and commerce, shall must contract with
1210		-	37.4at least three organizations more than one organization or business entities entity to provide
1211		-	37.5independent external reviews of all adverse determinations submitted for external review.
1212		-	37.6The contract shall must ensure that the fees for services rendered in connection with the
1213		-	37.7reviews are reasonable.
1214		-	37.8 ARTICLE 4
1215		-	37.9 GENERAL INSURANCE
1216		-	37.10Section 1. Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:
1217		-	37.11 Subdivision 1.General powers.(a) In connection with the duties and responsibilities
1218		-	37.12entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
1219		-	37.13of commerce may:
1220		-	37.14 (1) make public or private investigations within or without this state as the commissioner
1221		-	37.15considers necessary to determine whether any person has violated or is about to violate any
1222		-	37.16law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
1223		-	37.17 (2) require or permit any person to file a statement in writing, under oath or otherwise
1224		-	37.18as the commissioner determines, as to all the facts and circumstances concerning the matter
1225		-	37.19being investigated;
1226		-	37.20 (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
1227		-	37.21duties and responsibilities entrusted to the commissioner;
1228		-	37.22 (4) conduct investigations and hold hearings for the purpose of compiling information
1229		-	37.23related to the duties and responsibilities entrusted to the commissioner;
1230		-	37.24 (5) examine the books, accounts, records, and files of every licensee, and of every person
1231		-	37.25who is engaged in any activity regulated; the commissioner or a designated representative
1232		-	37.26shall have free access during normal business hours to the offices and places of business of
1233		-	37.27the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
1234		-	37.28in the place of business;
1235		-	37.29 (6) publish information which is contained in any order issued by the commissioner;
1236		-	37.30 (7) require any person subject to duties and responsibilities entrusted to the commissioner,
1237		-	37.31to report all sales or transactions that are regulated. The reports must be made within ten
1238		-	37.32days after the commissioner has ordered the report. The report is accessible only to the
	1139	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 35.1 (b) The purpose of the evaluation is to provide the legislature with a complete and timely
	1140	+	35.2analysis of all ramifications of any mandated health benefit proposal. The evaluation must
	1141	+	35.3include, in addition to other relevant information, the following to the extent applicable:
	1142	+	35.4 (1) scientific and medical information on the mandated health benefit proposal, on the
	1143	+	35.5potential for harm or benefit to the patient, and on the comparative benefit or harm from
	1144	+	35.6alternative forms of treatment, and must include the results of at least one professionally
	1145	+	35.7accepted and controlled trial comparing the medical consequences of the proposed therapy,
	1146	+	35.8alternative therapy, and no therapy;
	1147	+	35.9 (2) public health, economic, and fiscal impacts of the mandated health benefit proposal
	1148	+	35.10on persons receiving health services in Minnesota, on persons receiving health services in
	1149	+	35.11a Minnesota public health care program, on the relative cost-effectiveness of the proposal,
	1150	+	35.12and on the health care system in general;
	1151	+	35.13 (3) the extent to which the treatment, service, equipment, or drug is generally utilized
	1152	+	35.14by a significant portion of the population and used in the Minnesota public health care
	1153	+	35.15programs;
	1154	+	35.16 (4) the extent to which insurance coverage for the mandated health benefit proposal is
	1155	+	35.17already generally available and available in the Minnesota public health care programs;
	1156	+	35.18 (5) the extent to which the mandated health benefit proposal, by health plan category,
	1157	+	35.19would apply to the benefits offered to the health plan's enrollees and enrollees in the
	1158	+	35.20Minnesota public health care programs;
	1159	+	35.21 (6) the extent to which the mandated health benefit proposal will increase or decrease
	1160	+	35.22the cost of the treatment, service, equipment, or drug;
	1161	+	35.23 (7) the extent to which the mandated health benefit proposal may increase enrollee
	1162	+	35.24premiums; and
	1163	+	35.25 (8) if the proposal applies to a qualified health plan as defined in section 62A.011,
	1164	+	35.26subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
	1165	+	35.27using commercial market reimbursement rates in accordance with Code of Federal
	1166	+	35.28Regulations, title 45, section 155.170.
	1167	+	35.29 (c) The commissioner shall consider actuarial analysis done by health plan companies
	1168	+	35.30and any other proponent or opponent of the mandated health benefit proposal in determining
	1169	+	35.31the cost of the proposal.
	1170	+	35.32 (d) The commissioner must summarize the nature and quality of available information
	1171	+	35.33on these issues, and, if possible, must provide preliminary information to the public. The
	1172	+	35Article 3 Sec. 11.
	1173	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 36.1commissioner may conduct research on these issues or may determine that existing research
	1174	+	36.2is sufficient to meet the informational needs of the legislature. The commissioner may seek
	1175	+	36.3the assistance and advice of researchers, community leaders, or other persons or organizations
	1176	+	36.4with relevant expertise. The commissioner must provide the public with at least 45 days'
	1177	+	36.5notice when requesting information pursuant to this section. The commissioner must notify
	1178	+	36.6the chief authors of a bill when a request for information is issued.
	1179	+	36.7 (e) Information submitted to the commissioner pursuant to this section that meets the
	1180	+	36.8definition of trade secret information, as defined in section 13.37, subdivision 1, paragraph
	1181	+	36.9(b), is nonpublic data.
	1182	+	36.10 (f) The commissioner must publish all evaluations conducted under this section on a
	1183	+	36.11publicly available website within 30 days of the evaluation's completion.
	1184	+	36.12Sec. 12. Minnesota Statutes 2024, section 62J.26, subdivision 3, is amended to read:
	1185	+	36.13 Subd. 3.Requirements for evaluation.(a) No later than August 1 of the year preceding
	1186	+	36.14the legislative session in which a an incumbent legislator is planning on introducing a bill
	1187	+	36.15containing a mandated health benefit proposal, or is planning on offering an amendment to
	1188	+	36.16a bill that adds a mandated health benefit, the prospective author must notify the chair of
	1189	+	36.17one of the standing legislative committees that have jurisdiction over the subject matter of
	1190	+	36.18the proposal. No later than 15 days after notification is received, the chair must notify the
	1191	+	36.19commissioner that an evaluation of a mandated health benefit proposal is required to be
	1192	+	36.20completed in accordance with this section in order to inform the legislature before any action
	1193	+	36.21is taken on the proposal by either house of the legislature.
	1194	+	36.22 (b) The commissioner must conduct an evaluation described in subdivision 2 of each
	1195	+	36.23mandated health benefit proposal for which an evaluation is required under paragraph (a).
	1196	+	36.24 (c) If the evaluation of multiple proposals are required, the commissioner must consult
	1197	+	36.25with the chairs of the standing legislative committees having jurisdiction over the subject
	1198	+	36.26matter of the mandated health benefit proposals to prioritize the evaluations and establish
	1199	+	36.27a reporting date for each proposal to be evaluated.
	1200	+	36.28 (d) By December 31 of the year in which a mandated health benefit proposal, for which
	1201	+	36.29an evaluation described in subdivision 2 has not been conducted, is enacted, the commissioner
	1202	+	36.30must conduct an evaluation described in subdivision 2. The evaluation required by this
	1203	+	36.31paragraph applies to mandated health benefit proposals:
	1204	+	36.32 (1) introduced or offered by a legislator who was not seated by the deadline for
	1205	+	36.33notification under paragraph (a);
	1206	+	36Article 3 Sec. 12.
	1207	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 37.1 (2) enacted without conformity to paragraph (a); or
	1208	+	37.2 (3) for which an evaluation was required under paragraph (b) but was not conducted.
	1209	+	37.3 Sec. 13. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
	1210	+	37.4read:
	1211	+	37.5 Subd. 6.Conformity.A mandated health benefit proposal enacted into law is effective
	1212	+	37.6whether or not it is in conformity with this section.
	1213	+	37.7 Sec. 14. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
	1214	+	37.8read:
	1215	+	37.9 Subd. 7.Adoption of forms.(a) The commissioner of commerce must adopt forms, by
	1216	+	37.10July 1, 2026, for the following:
	1217	+	37.11 (1) an incumbent legislator to notify the chair of the mandated health benefit proposal
	1218	+	37.12under subdivision 3, paragraph (a); and
	1219	+	37.13 (2) the chair to notify the commissioner of the mandated health benefit proposal under
	1220	+	37.14subdivision 3, paragraph (a).
	1221	+	37.15 (b) The forms adopted under this subdivision must include all information needed from
	1222	+	37.16the legislator introducing or offering the mandated health benefit proposal for the
	1223	+	37.17commissioner to conduct the required evaluation.
	1224	+	37.18 ARTICLE 4
	1225	+	37.19 GENERAL INSURANCE
	1226	+	37.20Section 1. Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:
	1227	+	37.21 Subdivision 1.General powers.(a) In connection with the duties and responsibilities
	1228	+	37.22entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
	1229	+	37.23of commerce may:
	1230	+	37.24 (1) make public or private investigations within or without this state as the commissioner
	1231	+	37.25considers necessary to determine whether any person has violated or is about to violate any
	1232	+	37.26law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
	1233	+	37.27 (2) require or permit any person to file a statement in writing, under oath or otherwise
	1234	+	37.28as the commissioner determines, as to all the facts and circumstances concerning the matter
	1235	+	37.29being investigated;
1239	1236		37Article 4 Section 1.
1240		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 38.1respondent and other governmental agencies unless otherwise ordered by a court of competent
1241		-	38.2jurisdiction; and
1242		-	38.3 (8) assess a natural person or entity subject to the jurisdiction of the commissioner the
1243		-	38.4necessary expenses of the investigation performed by the department when an investigation
1244		-	38.5is made by order of the commissioner. The cost of the investigation shall be determined by
1245		-	38.6the commissioner and is based on the salary cost of investigators or assistants and at an
1246		-	38.7average rate per day or fraction thereof so as to provide for the total cost of the investigation.
1247		-	38.8All money collected must be deposited into the general fund. A natural person or entity
1248		-	38.9licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
1249		-	38.10investigation results in no finding of a violation. This clause does not apply to a natural
1250		-	38.11person or entity already subject to the assessment provisions of sections 60A.03 and
1251		-	38.1260A.031.; and
1252		-	38.13 (9) issue data calls.
1253		-	38.14 (b) For purposes of this section, "data call" means a written request from the
1254		-	38.15commissioner to two or more companies or persons subject to the commissioner's jurisdiction
1255		-	38.16to provide data or other information within a reasonable time period for a targeted regulatory
1256		-	38.17oversight purpose. A data call is not market analysis, as defined under section 60A.031,
1257		-	38.18subdivision 4, paragraph (f), and is not subject to section 60A.033.
1258		-	38.19Sec. 2. Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
1259		-	38.20read:
1260		-	38.21 Subd. 1b.Data calls.(a) Information provided in response to a data call issued by the
1261		-	38.22commissioner or the commissioner's authorized representative: (1) must be treated as
1262		-	38.23nonpublic data, as defined under section 13.02, subdivision 9; and (2) is not subject to
1263		-	38.24subpoena. The commissioner may create and make public summary data derived from data
1264		-	38.25classified as nonpublic under this paragraph.
1265		-	38.26 (b) The commissioner may grant access to data submitted by insurers in response to a
1266		-	38.27data call issued by the commissioner or the commissioner's authorized representative to the
1267		-	38.28National Association of Insurance Commissioners (NAIC) if NAIC agrees in writing to
1268		-	38.29hold the data as nonpublic data.
1269		-	38.30Sec. 3. Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:
1270		-	38.31 Subd. 2.Power to compel production of evidence.For the purpose of any investigation,
1271		-	38.32hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
1272		-	38Article 4 Sec. 3.
1273		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 39.1commissioner, the commissioner or a designated representative may issue data calls,
1274		-	39.2administer oaths and affirmations, subpoena witnesses, compel their attendance, take
1275		-	39.3evidence, and require the production of books, papers, correspondence, memoranda,
1276		-	39.4agreements, or other documents or records that the commissioner considers relevant or
1277		-	39.5material to the inquiry.
1278		-	39.6 A subpoena issued pursuant to this subdivision must state that the person to whom the
1279		-	39.7subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
1280		-	39.8the requested records have been given to law enforcement personnel except:
1281		-	39.9 (1) insofar as the disclosure is necessary to find and disclose the records; or
1282		-	39.10 (2) pursuant to court order.
1283		-	39.11Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:
1284		-	39.12 Subd. 4a.Maximum interest rate.(a) No conventional or cooperative apartment loan
1285		-	39.13or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
1286		-	39.14lawful interest rate in an amount equal to the Federal National Mortgage Association posted
1287		-	39.15yields on 30-year mortgage commitments for delivery within 60 days on standard
1288		-	39.16conventional fixed-rate mortgages published in the Wall Street Journal for the last business
1289		-	39.17day of the second preceding month average prime offer rate, as defined in Code of Federal
1290		-	39.18Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
1291		-	39.19recently published by the United States Consumer Financial Protection Bureau on the last
1292		-	39.20date the discounted interest rate for the transaction is set before consummation, plus four
1293		-	39.21percentage points. If the index is not available, a substitute index may be adopted by a
1294		-	39.22commissioner order.
1295		-	39.23 (b) The maximum lawful interest rate applicable to a cooperative apartment loan or
1296		-	39.24contract for deed at the time the loan or contract is made is the maximum lawful interest
1297		-	39.25rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
1298		-	39.26the provisions of section 334.01, a cooperative apartment loan or contract for deed may
1299		-	39.27provide, at the time the loan or contract is made, for the application of specified different
1300		-	39.28consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
1301		-	39.29the maximum lawful interest rate applicable to the loan or contract at the time the loan or
1302		-	39.30contract is made.
1303		-	39.31 (c) The maximum interest rate that can be charged on a conventional loan or a contract
1304		-	39.32for deed, with a duration of ten years or less, for the purchase of real estate described in
1305		-	39.33section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
	1237	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 38.1 (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
	1238	+	38.2duties and responsibilities entrusted to the commissioner;
	1239	+	38.3 (4) conduct investigations and hold hearings for the purpose of compiling information
	1240	+	38.4related to the duties and responsibilities entrusted to the commissioner;
	1241	+	38.5 (5) examine the books, accounts, records, and files of every licensee, and of every person
	1242	+	38.6who is engaged in any activity regulated; the commissioner or a designated representative
	1243	+	38.7shall have free access during normal business hours to the offices and places of business of
	1244	+	38.8the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
	1245	+	38.9in the place of business;
	1246	+	38.10 (6) publish information which is contained in any order issued by the commissioner;
	1247	+	38.11 (7) require any person subject to duties and responsibilities entrusted to the commissioner,
	1248	+	38.12to report all sales or transactions that are regulated. The reports must be made within ten
	1249	+	38.13days after the commissioner has ordered the report. The report is accessible only to the
	1250	+	38.14respondent and other governmental agencies unless otherwise ordered by a court of competent
	1251	+	38.15jurisdiction; and
	1252	+	38.16 (8) assess a natural person or entity subject to the jurisdiction of the commissioner the
	1253	+	38.17necessary expenses of the investigation performed by the department when an investigation
	1254	+	38.18is made by order of the commissioner. The cost of the investigation shall be determined by
	1255	+	38.19the commissioner and is based on the salary cost of investigators or assistants and at an
	1256	+	38.20average rate per day or fraction thereof so as to provide for the total cost of the investigation.
	1257	+	38.21All money collected must be deposited into the general fund. A natural person or entity
	1258	+	38.22licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
	1259	+	38.23investigation results in no finding of a violation. This clause does not apply to a natural
	1260	+	38.24person or entity already subject to the assessment provisions of sections 60A.03 and
	1261	+	38.2560A.031.; and
	1262	+	38.26 (9) issue data calls.
	1263	+	38.27 (b) For purposes of this section, "data call" means a written request from the
	1264	+	38.28commissioner to two or more companies or persons subject to the commissioner's jurisdiction
	1265	+	38.29to provide data or other information within a reasonable time period for a targeted regulatory
	1266	+	38.30oversight purpose. A data call is not market analysis, as defined under section 60A.031,
	1267	+	38.31subdivision 4, paragraph (f), and is not subject to section 60A.033.
	1268	+	38Article 4 Section 1.
	1269	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 39.1 Sec. 2. Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
	1270	+	39.2read:
	1271	+	39.3 Subd. 1b.Data calls.(a) Information provided in response to a data call issued by the
	1272	+	39.4commissioner or the commissioner's authorized representative: (1) must be treated as
	1273	+	39.5nonpublic data, as defined under section 13.02, subdivision 9; and (2) is not subject to
	1274	+	39.6subpoena. The commissioner may create and make public summary data derived from data
	1275	+	39.7classified as nonpublic under this paragraph.
	1276	+	39.8 (b) The commissioner may grant access to data submitted by insurers in response to a
	1277	+	39.9data call issued by the commissioner or the commissioner's authorized representative to the
	1278	+	39.10National Association of Insurance Commissioners (NAIC) if NAIC agrees in writing to
	1279	+	39.11hold the data as nonpublic data.
	1280	+	39.12Sec. 3. Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:
	1281	+	39.13 Subd. 2.Power to compel production of evidence.For the purpose of any investigation,
	1282	+	39.14hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
	1283	+	39.15commissioner, the commissioner or a designated representative may issue data calls,
	1284	+	39.16administer oaths and affirmations, subpoena witnesses, compel their attendance, take
	1285	+	39.17evidence, and require the production of books, papers, correspondence, memoranda,
	1286	+	39.18agreements, or other documents or records that the commissioner considers relevant or
	1287	+	39.19material to the inquiry.
	1288	+	39.20 A subpoena issued pursuant to this subdivision must state that the person to whom the
	1289	+	39.21subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
	1290	+	39.22the requested records have been given to law enforcement personnel except:
	1291	+	39.23 (1) insofar as the disclosure is necessary to find and disclose the records; or
	1292	+	39.24 (2) pursuant to court order.
	1293	+	39.25Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:
	1294	+	39.26 Subd. 4a.Maximum interest rate.(a) No conventional or cooperative apartment loan
	1295	+	39.27or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
	1296	+	39.28lawful interest rate in an amount equal to the Federal National Mortgage Association posted
	1297	+	39.29yields on 30-year mortgage commitments for delivery within 60 days on standard
	1298	+	39.30conventional fixed-rate mortgages published in the Wall Street Journal for the last business
	1299	+	39.31day of the second preceding month average prime offer rate, as defined in Code of Federal
	1300	+	39.32Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
1306	1301		39Article 4 Sec. 4.
1307		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 40.~~1under paragraph (a) or 15.75 percent per year,~~ ~~whichever is less.~~ ~~This paragraph is effective~~
1308		-	40.~~2August 1~~, ~~1992.~~
1309		-	40.~~3 (d) Contracts for deed executed pursuant to~~ a ~~commitment for~~ a ~~contract for deed, or~~
1310		-	40.~~4conventional or cooperative apartment loans made pursuant to a borrower's interest rate~~
1311		-	40.~~5commitment or made pursuant~~ to a ~~borrower's~~ loan ~~commitment,~~ or ~~made pursuant to a~~
1312		-	40.~~6commitment~~ for ~~conventional~~ or ~~cooperative apartment loans~~ made ~~upon payment of a~~
1313		-	40.~~7forward commitment fee including a borrower's~~ loan ~~commitment issued pursuant to a~~
1314		-	40.~~8forward commitment~~, ~~which commitment provides~~ for ~~consummation within some future~~
1315		-	40.~~9time following~~ the ~~issuance~~ of ~~the commitment may be consummated pursuant to the~~
1316		-	40.~~10provisions~~, ~~including the~~ interest rate~~, of the commitment notwithstanding the fact that the~~
1317		-	40.~~11maximum~~ lawful rate ~~of interest~~ at the time the ~~contract for deed or conventional~~ or
1318		-	40.~~12cooperative apartment loan~~ is ~~actually executed or~~ made ~~is less than the commitment rate~~
1319		-	40.~~13of interest, provided the commitment rate of interest does not exceed~~ the maximum ~~lawful~~
1320		-	40.~~14interest rate in effect on~~ the ~~date the commitment was issued. The refinancing~~ of~~: (1) an~~
1321		-	40.~~15existing conventional or cooperative apartment loan~~, ~~(2) a loan insured or guaranteed by~~
1322		-	40.~~16the secretary of housing and urban development~~, ~~the administrator of veterans affairs,~~ or
1323		-	40.~~17the administrator of the Farmers Home Administration~~, ~~or (3) a contract for deed by making~~
1324		-	40.~~18a conventional or cooperative apartment loan is deemed~~ to be a ~~new conventional~~ or
1325		-	40.~~19cooperative~~ apartment ~~loan for purposes of determining the maximum lawful~~ rate ~~of interest~~
1326		-	40.~~20under this subdivision.~~ ~~The renegotiation of~~ a ~~conventional~~ or ~~cooperative apartment loan~~
1327		-	40.~~21or a contract~~ for ~~deed is deemed to be a new loan~~ or ~~contract for deed for purposes~~ of
1328		-	40.~~22paragraph (b) and for purposes of determining the maximum lawful rate of interest under~~
1329		-	40.~~23this subdivision.~~ ~~A borrower's interest rate~~ commitment ~~or a borrower's loan commitment~~
1330		-	40.~~24is deemed to be issued on~~ the ~~date~~ the commitment ~~is hand delivered by~~ the ~~lender to, or~~
1331		-	40.~~25mailed to~~ the ~~borrower. A forward~~ commitment ~~is deemed to be issued on~~ the ~~date~~ the
1332		-	40.~~26forward commitment is hand delivered by~~ the ~~lender to,~~ or ~~mailed to the person paying the~~
1333		-	40.~~27forward~~ commitment ~~fee to the lender, or to any one of them if there should be more than~~
1334		-	40.~~28one. A commitment for a contract for deed is deemed to be issued on the date~~ the commitment
1335		-	40.~~29is initially executed by~~ the ~~contract for deed vendor or~~ the ~~vendor's authorized agent~~.
1336		-	40.30 (e) A ~~contract for deed executed pursuant to a commitment for a contract for deed,~~ or a
1337		-	40.~~31loan made pursuant to a borrower's interest rate commitment~~, or ~~made pursuant to a~~
1338		-	40.~~32borrower's loan commitment~~, or ~~made pursuant to~~ a ~~forward commitment~~ for ~~conventional~~
1339		-	40.~~33or~~ cooperative apartment ~~loans made upon payment of~~ a ~~forward commitment fee including~~
1340		-	40.~~34a borrower's~~ loan ~~commitment issued pursuant to a forward commitment at a~~ rate of interest
1341		-	40.~~35not in excess of the rate of interest authorized by~~ this subdivision at the ~~time the commitment~~
	1302	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 40.1recently published by the United States Consumer Financial Protection Bureau on the last
	1303	+	40.2date the discounted interest rate for the transaction is set before consummation, plus four
	1304	+	40.3percentage points. If the index is not available, a substitute index may be adopted by a
	1305	+	40.4commissioner order.
	1306	+	40.5 (b) The maximum lawful interest rate applicable to a cooperative apartment loan or
	1307	+	40.6contract for deed at the time the loan or contract is made is the maximum lawful interest
	1308	+	40.7rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
	1309	+	40.8the provisions of section 334.01, a cooperative apartment loan or contract for deed may
	1310	+	40.9provide, at the time the loan or contract is made, for the application of specified different
	1311	+	40.10consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
	1312	+	40.11the maximum lawful interest rate applicable to the loan or contract at the time the loan or
	1313	+	40.12contract is made.
	1314	+	40.13 (c) The maximum interest rate that can be charged on a conventional loan or a contract
	1315	+	40.14for deed, with a duration of ten years or less, for the purchase of real estate described in
	1316	+	40.15section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
	1317	+	40.16under paragraph (a) or 15.75 percent per year, whichever is less. This paragraph is effective
	1318	+	40.17August 1, 1992.
	1319	+	40.18 (d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
	1320	+	40.19conventional or cooperative apartment loans made pursuant to a borrower's interest rate
	1321	+	40.20commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
	1322	+	40.21commitment for conventional or cooperative apartment loans made upon payment of a
	1323	+	40.22forward commitment fee including a borrower's loan commitment issued pursuant to a
	1324	+	40.23forward commitment, which commitment provides for consummation within some future
	1325	+	40.24time following the issuance of the commitment may be consummated pursuant to the
	1326	+	40.25provisions, including the interest rate, of the commitment notwithstanding the fact that the
	1327	+	40.26maximum lawful rate of interest at the time the contract for deed or conventional or
	1328	+	40.27cooperative apartment loan is actually executed or made is less than the commitment rate
	1329	+	40.28of interest, provided the commitment rate of interest does not exceed the maximum lawful
	1330	+	40.29interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
	1331	+	40.30existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
	1332	+	40.31the secretary of housing and urban development, the administrator of veterans affairs, or
	1333	+	40.32the administrator of the Farmers Home Administration, or (3) a contract for deed by making
	1334	+	40.33a conventional or cooperative apartment loan is deemed to be a new conventional or
	1335	+	40.34cooperative apartment loan for purposes of determining the maximum lawful rate of interest
	1336	+	40.35under this subdivision. The renegotiation of a conventional or cooperative apartment loan
1342	1337		40Article 4 Sec. 4.
1343		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 41.1was made continues to be enforceable in accordance with its terms until the indebtedness
1344		-	41.2is fully satisfied.
1345		-	41.3 Sec. 5. Minnesota Statutes 2024, section 60A.201, subdivision 2, is amended to read:
1346		-	41.4 Subd. 2.Availability of other coverage; presumption.There shall be a rebuttable
1347		-	41.5presumption that the following coverages are available from a licensed insurer:
1348		-	41.6 (a) (1) all mandatory automobile insurance coverages required by chapter 65B;
1349		-	41.7 (b) (2) private passenger automobile physical damage coverage;
1350		-	41.8 (c) (3) homeowners and property insurance on owner-occupied dwellings whose value
1351		-	41.9is less than $500,000. This figure shall be changed annually by the commissioner by the
1352		-	41.10same percentage as the Consumer Price Index for the Minneapolis-St. Paul Metropolitan
1353		-	41.11Area is changed;
1354		-	41.12 (d) (4) any coverage readily available from three or more licensed insurers unless the
1355		-	41.13licensed insurers quote a premium and terms not competitive with a premium and terms
1356		-	41.14quoted by an eligible surplus lines insurer; and
1357		-	41.15 (e) (5) workers' compensation insurance, except excess workers' compensation insurance
1358		-	41.16which is not available from the Workers' Compensation Reinsurance Association.
1359		-	41.17Sec. 6. Minnesota Statutes 2024, section 60A.201, is amended by adding a subdivision to
1360		-	41.18read:
1361		-	41.19 Subd. 7.FAIR plan coverage; notice.If the insurance placed by the surplus lines broker
1362		-	41.20with a nonadmitted insurer is homeowners or property insurance on an owner-occupied
1363		-	41.21dwelling, the broker must print, type, or stamp in not less than ten-point type on the face of
1364		-	41.22the policy the following notice: "YOU MAY BE ELIGIBLE FOR COVERAGE THROUGH
1365		-	41.23THE MINNESOTA FAIR PLAN, WHICH MAKES AVAILABLE PROPERTY AND
1366		-	41.24LIABILITY COVERAGE, AS DEFINED BY THE MINNESOTA FAIR PLAN ACT, TO
1367		-	41.25QUALIFIED APPLICANTS WHO HAVE BEEN UNABLE TO SECURE PROPERTY
1368		-	41.26AND LIABILITY INSURANCE THROUGH THE NORMAL INSURANCE MARKETS."
1369		-	41.27The notice under this subdivision must not be covered or concealed in any manner, and is
1370		-	41.28in addition to the notice required under section 60A.207 or 60A.209.
1371		-	41.29Sec. 7. Minnesota Statutes 2024, section 60C.09, subdivision 2, is amended to read:
1372		-	41.30 Subd. 2.Further definition.In addition to subdivision 1, a covered claim does not
1373		-	41.31include:
1374		-	41Article 4 Sec. 7.
1375		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 42.1 (1) claims by an affiliate of the insurer;
1376		-	42.2 (2) claims due a reinsurer, insurer, insurance pool, or underwriting association, as
1377		-	42.3subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise.
1378		-	42.4This clause does not prevent a person from presenting the excluded claim to the insolvent
1379		-	42.5insurer or its liquidator, but the claims shall not be asserted against another person, including
1380		-	42.6the person to whom the benefits were paid or the insured of the insolvent insurer, except to
1381		-	42.7the extent that the claim is outside the coverage of the policy issued by the insolvent insurer;
1382		-	42.8and
1383		-	42.9 (3) any claims, resulting from insolvencies which occur after July 31, 1996, by an insured
1384		-	42.10whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which
1385		-	42.11the insurer becomes an insolvent insurer; provided that an insured's net worth on that date
1386		-	42.12shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries
1387		-	42.13and affiliates as calculated on a consolidated basis. The association may request financial
1388		-	42.14information from an insured to determine the insured's net worth under this clause. If an
1389		-	42.15insured fails to provide the requested financial information within 60 days of the date the
1390		-	42.16association submits a request, the insured's net worth is deemed to exceed $25,000,000 for
1391		-	42.17purposes of the association's evaluation of the claim under section 60C.10. A request by
1392		-	42.18the association to an insured seeking financial information under this clause must inform
1393		-	42.19the insured of the consequences of failing to provide the requested information;
1394		-	42.20 (4) any claims under a policy written by an insolvent insurer with a deductible or
1395		-	42.21self-insured retention of $300,000 or more, nor that portion of a claim that is within an
1396		-	42.22insured's deductible or self-insured retention; and
1397		-	42.23 (5) claims that are a fine, penalty, interest, or punitive or exemplary damages.
1398		-	42.24Sec. 8. Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision to
1399		-	42.25read:
1400		-	42.26 Subd. 5.Other violations.If the commissioner believes a person has committed a
1401		-	42.27violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
1402		-	42.28insurer by affiliates or by the insurance holding company system, the violation may serve
1403		-	42.29as an independent basis for disapproving dividends or distributions and for placing the
1404		-	42.30insurer under an order of supervision under chapter 60B.
	1338	+	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
	1339	+	41.2paragraph (b) and for purposes of determining the maximum lawful rate of interest under
	1340	+	41.3this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
	1341	+	41.4is deemed to be issued on the date the commitment is hand delivered by the lender to, or
	1342	+	41.5mailed to the borrower. A forward commitment is deemed to be issued on the date the
	1343	+	41.6forward commitment is hand delivered by the lender to, or mailed to the person paying the
	1344	+	41.7forward commitment fee to the lender, or to any one of them if there should be more than
	1345	+	41.8one. A commitment for a contract for deed is deemed to be issued on the date the commitment
	1346	+	41.9is initially executed by the contract for deed vendor or the vendor's authorized agent.
	1347	+	41.10 (e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
	1348	+	41.11loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
	1349	+	41.12borrower's loan commitment, or made pursuant to a forward commitment for conventional
	1350	+	41.13or cooperative apartment loans made upon payment of a forward commitment fee including
	1351	+	41.14a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
	1352	+	41.15not in excess of the rate of interest authorized by this subdivision at the time the commitment
	1353	+	41.16was made continues to be enforceable in accordance with its terms until the indebtedness
	1354	+	41.17is fully satisfied.
	1355	+	41.18Sec. 5. Minnesota Statutes 2024, section 60A.201, subdivision 2, is amended to read:
	1356	+	41.19 Subd. 2.Availability of other coverage; presumption.There shall be a rebuttable
	1357	+	41.20presumption that the following coverages are available from a licensed insurer:
	1358	+	41.21 (a) (1) all mandatory automobile insurance coverages required by chapter 65B;
	1359	+	41.22 (b) (2) private passenger automobile physical damage coverage;
	1360	+	41.23 (c) (3) homeowners and property insurance on owner-occupied dwellings whose value
	1361	+	41.24is less than $500,000. This figure shall be changed annually by the commissioner by the
	1362	+	41.25same percentage as the Consumer Price Index for the Minneapolis-St. Paul Metropolitan
	1363	+	41.26Area is changed;
	1364	+	41.27 (d) (4) any coverage readily available from three or more licensed insurers unless the
	1365	+	41.28licensed insurers quote a premium and terms not competitive with a premium and terms
	1366	+	41.29quoted by an eligible surplus lines insurer; and
	1367	+	41.30 (e) (5) workers' compensation insurance, except excess workers' compensation insurance
	1368	+	41.31which is not available from the Workers' Compensation Reinsurance Association.
	1369	+	41Article 4 Sec. 5.
	1370	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 42.1 Sec. 6. Minnesota Statutes 2024, section 60A.201, is amended by adding a subdivision to
	1371	+	42.2read:
	1372	+	42.3 Subd. 7.FAIR plan coverage; notice.If the insurance placed by the surplus lines broker
	1373	+	42.4with a nonadmitted insurer is homeowners or property insurance on an owner-occupied
	1374	+	42.5dwelling, the broker must print, type, or stamp in not less than ten-point type on the face of
	1375	+	42.6the policy the following notice: "YOU MAY BE ELIGIBLE FOR COVERAGE THROUGH
	1376	+	42.7THE MINNESOTA FAIR PLAN, WHICH MAKES AVAILABLE PROPERTY AND
	1377	+	42.8LIABILITY COVERAGE, AS DEFINED BY THE MINNESOTA FAIR PLAN ACT, TO
	1378	+	42.9QUALIFIED APPLICANTS WHO HAVE BEEN UNABLE TO SECURE PROPERTY
	1379	+	42.10AND LIABILITY INSURANCE THROUGH THE NORMAL INSURANCE MARKETS."
	1380	+	42.11The notice under this subdivision must not be covered or concealed in any manner, and is
	1381	+	42.12in addition to the notice required under section 60A.207 or 60A.209.
	1382	+	42.13Sec. 7. Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision to
	1383	+	42.14read:
	1384	+	42.15 Subd. 5.Other violations.If the commissioner believes a person has committed a
	1385	+	42.16violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
	1386	+	42.17insurer by affiliates or by the insurance holding company system, the violation may serve
	1387	+	42.18as an independent basis for disapproving dividends or distributions and for placing the
	1388	+	42.19insurer under an order of supervision under chapter 60B.
	1389	+	42.20Sec. 8. Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:
	1390	+	42.21 Subd. 4.Control.The term "control," including the terms "controlling," "controlled
	1391	+	42.22by," and "under common control with," means the possession, direct or indirect, of the
	1392	+	42.23power to direct or cause the direction of the management and policies of a person, whether
	1393	+	42.24through the ownership of voting securities, by contract other than a commercial contract
	1394	+	42.25for goods or nonmanagement services, or otherwise, unless the power is the result of an
	1395	+	42.26official position with, or corporate office held by, or court appointment of, the person.
	1396	+	42.27Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
	1397	+	42.28the power to vote, or holds proxies representing, ten percent or more of the voting securities
	1398	+	42.29of any other person. This presumption may be rebutted by a showing made in the manner
	1399	+	42.30provided by section 60D.19, subdivision 11, that control does not exist in fact. The
	1400	+	42.31commissioner may determine, after furnishing all persons in interest notice and opportunity
	1401	+	42.32to be heard and making specific findings of fact to support such the determination, that
	1402	+	42.33control exists in fact, notwithstanding the absence of a presumption to that effect.
1405	1403		42Article 4 Sec. 8.
1406		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 43.1 Sec. 9. Minnesota Statutes 2024, section 60D.15, ~~subdivision 4,~~ is amended to ~~read:~~
1407		-	43.~~2 Subd. 4.Control.The term "control," including the terms "controlling," "controlled~~
1408		-	43.~~3by,~~" ~~and "under common control with," means the possession, direct or indirect, of the~~
1409		-	43.~~4power to direct or cause~~ the ~~direction of~~ the ~~management~~ and ~~policies of a person, whether~~
1410		-	43.~~5through~~ the ~~ownership of voting securities,~~ by ~~contract other than a commercial contract~~
1411		-	43.~~6for goods or nonmanagement services, or otherwise, unless the power is the result of an~~
1412		-	43.~~7official position with~~, ~~or corporate office held~~ by~~, or court appointment of, the person.~~
1413		-	43.~~8Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with~~
1414		-	43.~~9the power to vote,~~ ~~or holds proxies representing, ten percent or more~~ of ~~the voting securities~~
1415		-	43.~~10of any other person~~. ~~This presumption may be rebutted~~ by a ~~showing made in the manner~~
1416		-	43.~~11provided by section 60D.19, subdivision 11, that control does not exist in fact. The~~
1417		-	43.~~12commissioner may determine,~~ ~~after furnishing all persons in interest notice and opportunity~~
1418		-	43.~~13to be heard and making specific findings~~ of ~~fact to support such~~ the ~~determination, that~~
1419		-	43.~~14control exists in fact~~, ~~notwithstanding~~ the ~~absence of~~ a ~~presumption to that effect.~~
1420		-	43.~~15Sec. 10.~~ ~~Minnesota Statutes 2024,~~ ~~section 60D.15, is amended by adding~~ a ~~subdivision to~~
1421		-	43.~~16read:~~
1422		-	43.~~17 Subd~~. ~~4c.Group capital calculation instructions."Group capital calculation~~
1423		-	43.~~18instructions" means the group capital calculation instructions adopted by the NAIC and as~~
1424		-	43.~~19amended by the NAIC from time to time in accordance with procedures adopted by the~~
1425		-	43.~~20NAIC.~~
1426		-	43.~~21Sec. 11.~~ ~~Minnesota Statutes 2024~~, ~~section 60D.15, is amended by adding a subdivision to~~
1427		-	43.~~22read:~~
1428		-	43.~~23 Subd.~~ ~~6b.NAIC."NAIC" means the National Association of Insurance Commissioners~~.
1429		-	43.24Sec. 12. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
	1404	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 43.1 Sec. 9. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
	1405	+	43.2read:
	1406	+	43.3 Subd. 4c.Group capital calculation instructions."Group capital calculation
	1407	+	43.4instructions" means the group capital calculation instructions adopted by the NAIC and as
	1408	+	43.5amended by the NAIC from time to time in accordance with procedures adopted by the
	1409	+	43.6NAIC.
	1410	+	43.7 Sec. 10. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
	1411	+	43.8read:
	1412	+	43.9 Subd. 6b.NAIC."NAIC" means the National Association of Insurance Commissioners.
	1413	+	43.10Sec. 11. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
	1414	+	43.11read:
	1415	+	43.12 Subd. 6c.NAIC liquidity stress test framework."NAIC liquidity stress test framework"
	1416	+	43.13means a NAIC publication which includes a history of the NAIC's development of regulatory
	1417	+	43.14liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity
	1418	+	43.15stress test instructions and reporting templates for a specific data year, scope criteria,
	1419	+	43.16instructions, and reporting template being adopted by the NAIC, and as amended by the
	1420	+	43.17NAIC from time to time in accordance with the procedures adopted by the NAIC.
	1421	+	43.18Sec. 12. Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:
	1422	+	43.19 Subd. 7.Person.A "person" is an individual, a corporation, a limited liability company,
	1423	+	43.20a partnership, an association, a joint stock company, a trust, an unincorporated organization,
	1424	+	43.21any similar entity or any combination of the foregoing acting in concert, but does not include
	1425	+	43.22any joint venture partnership exclusively engaged in owning, managing, leasing, or
	1426	+	43.23developing real or tangible personal property.
	1427	+	43.24Sec. 13. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
1430	1428		43.25read:
1431		-	43.26 Subd. 6c.NAIC liquidity stress test ~~framework."NAIC liquidity stress test framework"~~
1432		-	43.~~27means a NAIC publication which includes a history~~ of the ~~NAIC's development of regulatory~~
1433		-	43.~~28liquidity stress testing,~~ the ~~scope criteria applicable for a specific~~ data year~~, and the liquidity~~
1434		-	43.~~29stress~~ test ~~instructions and reporting templates~~ for ~~a specific~~ data ~~year, scope criteria,~~
1435		-	43.~~30instructions, and reporting template being adopted by the NAIC, and as amended by the~~
1436		-	43.~~31NAIC from time to time in accordance with the procedures adopted by the NAIC~~.
1437		-	43~~Article 4~~ Sec. 12.
1438		-	~~S2216-~~2 ~~2nd EngrossmentSF2216 REVISOR RSI 44.1 Sec~~. 13. ~~Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended~~ to ~~read:~~
1439		-	44.~~2 Subd. 7.Person.A "person" is an individual~~, ~~a corporation~~, ~~a limited liability company~~,
1440		-	44.~~3a partnership,~~ ~~an association,~~ ~~a joint stock company, a trust, an unincorporated organization,~~
1441		-	44.~~4any similar entity or any combination of the foregoing acting~~ in ~~concert~~, ~~but does not include~~
1442		-	44.~~5any joint venture partnership exclusively engaged in owning~~, ~~managing, leasing,~~ or
1443		-	44.~~6developing real~~ or ~~tangible personal property.~~
1444		-	44.~~7 Sec. 14. Minnesota Statutes 2024~~, ~~section 60D.15,~~ is ~~amended by adding a subdivision to~~
1445		-	44.~~8read:~~
1446		-	44.~~9 Subd.~~ ~~7a.Scope criteria."Scope criteria," as detailed~~ in ~~the NAIC liquidity stress test~~
1447		-	44.~~10framework~~, ~~means the designated exposure bases along with minimum magnitudes of the~~
1448		-	44.~~11designated exposure bases for~~ the ~~specified data year that are used to establish a preliminary~~
1449		-	44.~~12list~~ of ~~insurers considered scoped into the NAIC liquidity stress test framework for that data~~
1450		-	44.~~13year.~~
1451		-	44.~~14Sec. 15.~~ ~~Minnesota Statutes 2024,~~ ~~section 60D.16, subdivision 2,~~ ~~is amended to read:~~
1452		-	44.~~15 Subd.~~ ~~2.Additional investment authority.~~In ~~addition to investments in~~ common stock,
1453		-	44.~~16preferred stock, debt obligations~~, and other securities ~~otherwise permitted under this chapter~~,
1454		-	44.~~17a domestic insurer may also:~~
1455		-	44.18 (a) Invest, in common stock, preferred stock, debt obligations, and other ~~securities of~~
1456		-	44.~~19one~~ or more subsidiaries~~, amounts that do not exceed~~ the ~~lesser of ten percent of the insurer's~~
1457		-	44.~~20assets or 50 percent~~ of the insurer~~'s surplus as regards policyholders,~~ provided ~~that after the~~
1458		-	44.~~21investments,~~ the ~~insurer's surplus as regards policyholders will be is reasonable~~ in ~~relation~~
1459		-	44.~~22to~~ the insurer~~'s outstanding liabilities and adequate~~ to ~~its financial needs. In calculating~~ the
1460		-	44.~~23amount of these investments, investments~~ in ~~domestic~~ or ~~foreign insurance subsidiaries and~~
1461		-	44.~~24health maintenance organizations must be excluded~~, ~~and there must be included~~:
1462		-	44.25 (1) ~~total net money or other consideration expended and obligations assumed~~ in ~~the~~
1463		-	44.~~26acquisition or formation~~ of a subsidiary~~, including all organizational expenses and~~
1464		-	44.~~27contributions to capital and surplus~~ of the subsidiary ~~whether or not represented by the~~
1465		-	44.~~28purchase~~ of ~~capital stock or issuance~~ of ~~other securities; and~~
1466		-	44.29 (2) ~~all amounts expended~~ in ~~acquiring additional~~ common stock, ~~preferred stock, debt~~
1467		-	44.~~30obligations~~, ~~and~~ other securities~~; and all contributions to the capital~~ or ~~surplus~~, ~~of a subsidiary~~
1468		-	44.~~31subsequent~~ to ~~its acquisition or formation.~~
1469		-	44~~Article 4 Sec.~~ 15.
1470		-	~~S2216-2 2nd Engrossment~~~~SF2216 REVISOR RSI 45.1 (b) Invest any amount in common stock, preferred stock, debt obligations, and other~~
1471		-	45.~~2securities of one or more subsidiaries engaged or organized~~ to ~~engage exclusively in the~~
1472		-	45.~~3ownership and management of assets authorized as investments for~~ the ~~insurer provided~~
1473		-	45.~~4that the subsidiary agrees to limit its investments in~~ any ~~asset so that the investments will~~
1474		-	45.~~5do not cause~~ the ~~amount of the total investment of the insurer to exceed~~ any ~~of the investment~~
1475		-	45.~~6limitations specified in paragraph (a) or other statutes applicable to~~ the ~~insurer. For~~ the
1476		-	45.~~7purpose~~ of ~~this paragraph~~, ~~"the total investment of the insurer" includes:~~
1477		-	45.~~8 (1) any direct investment by~~ the insurer in an ~~asset; and~~
1478		-	45.~~9 (2)~~ the ~~insurer's proportionate share of any investment in an asset by any subsidiary of~~
1479		-	45.~~10the insurer~~, ~~which must be calculated by multiplying~~ the ~~amount of~~ the ~~subsidiary's~~
1480		-	45.~~11investment by~~ the ~~percentage of~~ the ~~ownership of~~ the ~~subsidiary.~~
1481		-	45.~~12 (c) With~~ the ~~approval of~~ the ~~commissioner, invest any greater amount in common stock,~~
1482		-	45.~~13preferred stock~~, ~~debt obligations~~, or ~~other securities of one or more subsidiaries, if after the~~
1483		-	45.~~14investment~~ the ~~insurer's surplus as regards policyholders will be is reasonable~~ in ~~relation to~~
1484		-	45.~~15the~~ insurer~~'s outstanding liabilities and adequate~~ to ~~its financial needs.~~
1485		-	45.~~16Sec. 16.~~ ~~Minnesota Statutes 2024~~, ~~section 60D.17~~, ~~subdivision 1,~~ ~~is amended to read:~~
1486		-	45.~~17 Subdivision 1.Filing requirements.(a) No person other than~~ the ~~issuer shall:~~ ~~(1) make~~
1487		-	45.~~18a tender offer for or a request or invitation for tenders~~ of~~, or enter into any agreement to~~
1488		-	45.~~19exchange securities~~ or ~~for, seek~~ to acquire~~, or acquire,~~ ~~in the open market or otherwise, any~~
1489		-	45.~~20voting security~~ of ~~a domestic insurer if, after~~ the ~~consummation thereof, the person would,~~
1490		-	45.~~21directly or indirectly,~~ ~~or by conversion or by exercise~~ of ~~any right to acquire, be in control~~
1491		-	45.~~22of~~ the ~~insurer; or (2) enter into an agreement to merge with or otherwise to acquire control~~
1492		-	45.~~23of a domestic insurer or any person controlling a domestic insurer unless, at~~ the ~~time~~ the
1493		-	45.~~24offer, request,~~ ~~or invitation~~ is ~~made or the agreement is entered into, or before the acquisition~~
1494		-	45.~~25of the securities if no offer or agreement is involved~~, the person ~~has filed with the~~
1495		-	45.~~26commissioner and has sent to~~ the ~~insurer~~, ~~a statement containing~~ the information ~~required~~
1496		-	45.~~27by this~~ section ~~and~~ the ~~offer, request, invitation, agreement, or acquisition has been approved~~
1497		-	45.~~28by the commissioner~~ in ~~the manner prescribed in this section~~.
1498		-	45.29 (b) For purposes of this section, a ~~controlling person of a~~ domestic insurer ~~seeking to~~
1499		-	45.~~30divest its controlling interest in~~ the ~~domestic insurer~~, ~~in any manner~~, ~~shall file with the~~
1500		-	45.~~31commissioner, with a copy to~~ the ~~insurer, confidential notice~~ of ~~its proposed divestiture at~~
1501		-	45.~~32least 30 days before~~ the ~~cessation~~ of ~~control. The commissioner shall determine those~~
1502		-	45.~~33instances in which~~ the ~~party or parties seeking to divest or to acquire a controlling interest~~
1503		-	45.~~34in~~ an ~~insurer will be required to file for and obtain approval~~ of ~~the transaction~~. ~~The~~
1504		-	45Article 4 Sec. 16.
1505		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 46.~~1information must remain confidential until~~ the ~~conclusion of~~ the ~~transaction unless the~~
1506		-	46.~~2commissioner, in~~ the commissioner~~'s discretion~~, ~~determines~~ that ~~confidential treatment~~
1507		-	46.~~3interferes~~ with the ~~enforcement of this section. This paragraph does not apply if~~ the ~~statement~~
1508		-	46.~~4referred to~~ in ~~paragraph (a) is otherwise filed.~~
1509		-	46.~~5 (c)~~ With ~~respect to a transaction subject to~~ this section~~, the acquiring person must also~~
1510		-	46.~~6file a preacquisition notification with the commissioner~~, ~~which must contain the information~~
1511		-	46.~~7set forth in section 60D~~.~~18, subdivision~~ 3~~, paragraph (b)~~. ~~A failure to file the~~ notification
1512		-	46.~~8may~~ be subject to ~~penalties specified in section 60D.18,~~ subdivision 5.
1513		-	46.~~9 (d) For purposes of this section,~~ a ~~domestic insurer includes a person controlling a~~
1514		-	46.~~10domestic insurer unless the person,~~ ~~as determined by~~ the commissioner~~, is either directly~~
1515		-	46.~~11or through its affiliates primarily engaged~~ in ~~business other than~~ the ~~business of insurance.~~
1516		-	46.~~12For the purposes of this section, "person" does not include any securities broker holding,~~
1517		-	46.~~13in~~ the ~~usual~~ and ~~customary brokers broker's function, less than 20 percent of~~ the ~~voting~~
1518		-	46.~~14securities~~ of an insurance ~~company or of any person that controls an insurance company.~~
1519		-	46.15 (e) The ~~statement filed with the commissioner pursuant~~ to ~~subdivisions 1 and 2 must~~
1520		-	46.~~16remain confidential until~~ the ~~transaction is approved by~~ the commissioner~~, except that all~~
1521		-	46.~~17attachments filed with~~ the ~~statement remain confidential after the approval unless~~ the
1522		-	46.~~18commissioner~~, in the ~~commissioner's discretion, determines that confidential treatment~~ of
1523		-	46.~~19any~~ of ~~this information will interfere with enforcement of this section.~~
1524		-	46.~~20Sec. 17.~~ ~~Minnesota Statutes 2024,~~ ~~section 60D.18, subdivision 3,~~ ~~is amended to read:~~
1525		-	46.~~21 Subd.~~ ~~3.Preacquisition notification;~~ ~~waiting period.(a)~~ An ~~acquisition covered by~~
1526		-	46.~~22subdivision 2 may be subject to an order pursuant to subdivision 4 5 unless~~ the ~~acquiring~~
1527		-	46.~~23person files a preacquisition~~ notification and ~~the waiting period has expired.~~ The ~~acquired~~
1528		-	46.~~24person may file a preacquisition notification.~~ The commissioner ~~shall give confidential~~
1529		-	46.~~25treatment to information submitted under this section in~~ the ~~same manner as provided in~~
1530		-	46.~~26section 60D.22.~~
1531		-	46.~~27 (b)~~ The ~~preacquisition notification must be in~~ the ~~form and contain~~ the information as
1532		-	46.~~28prescribed~~ by the ~~National Association of Insurance Commissioners relating to those markets~~
1533		-	46.~~29that~~, ~~under~~ subdivision 2, ~~paragraph (b), clause (5) (4), cause the acquisition not~~ to be
1534		-	46.~~30exempted from~~ the ~~provisions of this section. The commissioner may require the additional~~
1535		-	46.~~31material and~~ information as the ~~commissioner deems necessary to determine whether the~~
1536		-	46.~~32proposed acquisition, if consummated, would violate~~ the ~~competitive standard of subdivision~~
1537		-	46.~~334. The required information may include an opinion~~ of ~~an economist as to the competitive~~
	1429	+	43.26 Subd. 7a.Scope criteria."Scope criteria," as detailed in the NAIC liquidity stress test
	1430	+	43.27framework, means the designated exposure bases along with minimum magnitudes of the
	1431	+	43.28designated exposure bases for the specified data year that are used to establish a preliminary
	1432	+	43.29list of insurers considered scoped into the NAIC liquidity stress test framework for that data
	1433	+	43.30year.
	1434	+	43Article 4 Sec. 13.
	1435	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 44.1 Sec. 14. Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:
	1436	+	44.2 Subd. 2.Additional investment authority.In addition to investments in common stock,
	1437	+	44.3preferred stock, debt obligations, and other securities otherwise permitted under this chapter,
	1438	+	44.4a domestic insurer may also:
	1439	+	44.5 (a) Invest, in common stock, preferred stock, debt obligations, and other securities of
	1440	+	44.6one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
	1441	+	44.7assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
	1442	+	44.8investments, the insurer's surplus as regards policyholders will be is reasonable in relation
	1443	+	44.9to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
	1444	+	44.10amount of these investments, investments in domestic or foreign insurance subsidiaries and
	1445	+	44.11health maintenance organizations must be excluded, and there must be included:
	1446	+	44.12 (1) total net money or other consideration expended and obligations assumed in the
	1447	+	44.13acquisition or formation of a subsidiary, including all organizational expenses and
	1448	+	44.14contributions to capital and surplus of the subsidiary whether or not represented by the
	1449	+	44.15purchase of capital stock or issuance of other securities; and
	1450	+	44.16 (2) all amounts expended in acquiring additional common stock, preferred stock, debt
	1451	+	44.17obligations, and other securities; and all contributions to the capital or surplus, of a subsidiary
	1452	+	44.18subsequent to its acquisition or formation.
	1453	+	44.19 (b) Invest any amount in common stock, preferred stock, debt obligations, and other
	1454	+	44.20securities of one or more subsidiaries engaged or organized to engage exclusively in the
	1455	+	44.21ownership and management of assets authorized as investments for the insurer provided
	1456	+	44.22that the subsidiary agrees to limit its investments in any asset so that the investments will
	1457	+	44.23do not cause the amount of the total investment of the insurer to exceed any of the investment
	1458	+	44.24limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
	1459	+	44.25purpose of this paragraph, "the total investment of the insurer" includes:
	1460	+	44.26 (1) any direct investment by the insurer in an asset; and
	1461	+	44.27 (2) the insurer's proportionate share of any investment in an asset by any subsidiary of
	1462	+	44.28the insurer, which must be calculated by multiplying the amount of the subsidiary's
	1463	+	44.29investment by the percentage of the ownership of the subsidiary.
	1464	+	44.30 (c) With the approval of the commissioner, invest any greater amount in common stock,
	1465	+	44.31preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
	1466	+	44.32investment the insurer's surplus as regards policyholders will be is reasonable in relation to
	1467	+	44.33the insurer's outstanding liabilities and adequate to its financial needs.
	1468	+	44Article 4 Sec. 14.
	1469	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 45.1 Sec. 15. Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:
	1470	+	45.2 Subdivision 1.Filing requirements.(a) No person other than the issuer shall: (1) make
	1471	+	45.3a tender offer for or a request or invitation for tenders of, or enter into any agreement to
	1472	+	45.4exchange securities or for, seek to acquire, or acquire, in the open market or otherwise, any
	1473	+	45.5voting security of a domestic insurer if, after the consummation thereof, the person would,
	1474	+	45.6directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
	1475	+	45.7of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
	1476	+	45.8of a domestic insurer or any person controlling a domestic insurer unless, at the time the
	1477	+	45.9offer, request, or invitation is made or the agreement is entered into, or before the acquisition
	1478	+	45.10of the securities if no offer or agreement is involved, the person has filed with the
	1479	+	45.11commissioner and has sent to the insurer, a statement containing the information required
	1480	+	45.12by this section and the offer, request, invitation, agreement, or acquisition has been approved
	1481	+	45.13by the commissioner in the manner prescribed in this section.
	1482	+	45.14 (b) For purposes of this section, a controlling person of a domestic insurer seeking to
	1483	+	45.15divest its controlling interest in the domestic insurer, in any manner, shall file with the
	1484	+	45.16commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
	1485	+	45.17least 30 days before the cessation of control. The commissioner shall determine those
	1486	+	45.18instances in which the party or parties seeking to divest or to acquire a controlling interest
	1487	+	45.19in an insurer will be required to file for and obtain approval of the transaction. The
	1488	+	45.20information must remain confidential until the conclusion of the transaction unless the
	1489	+	45.21commissioner, in the commissioner's discretion, determines that confidential treatment
	1490	+	45.22interferes with the enforcement of this section. This paragraph does not apply if the statement
	1491	+	45.23referred to in paragraph (a) is otherwise filed.
	1492	+	45.24 (c) With respect to a transaction subject to this section, the acquiring person must also
	1493	+	45.25file a preacquisition notification with the commissioner, which must contain the information
	1494	+	45.26set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
	1495	+	45.27may be subject to penalties specified in section 60D.18, subdivision 5.
	1496	+	45.28 (d) For purposes of this section, a domestic insurer includes a person controlling a
	1497	+	45.29domestic insurer unless the person, as determined by the commissioner, is either directly
	1498	+	45.30or through its affiliates primarily engaged in business other than the business of insurance.
	1499	+	45.31For the purposes of this section, "person" does not include any securities broker holding,
	1500	+	45.32in the usual and customary brokers broker's function, less than 20 percent of the voting
	1501	+	45.33securities of an insurance company or of any person that controls an insurance company.
	1502	+	45Article 4 Sec. 15.
	1503	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 46.1 (e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
	1504	+	46.2remain confidential until the transaction is approved by the commissioner, except that all
	1505	+	46.3attachments filed with the statement remain confidential after the approval unless the
	1506	+	46.4commissioner, in the commissioner's discretion, determines that confidential treatment of
	1507	+	46.5any of this information will interfere with enforcement of this section.
	1508	+	46.6 Sec. 16. Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:
	1509	+	46.7 Subd. 3.Preacquisition notification; waiting period.(a) An acquisition covered by
	1510	+	46.8subdivision 2 may be subject to an order pursuant to subdivision 4 5 unless the acquiring
	1511	+	46.9person files a preacquisition notification and the waiting period has expired. The acquired
	1512	+	46.10person may file a preacquisition notification. The commissioner shall give confidential
	1513	+	46.11treatment to information submitted under this section in the same manner as provided in
	1514	+	46.12section 60D.22.
	1515	+	46.13 (b) The preacquisition notification must be in the form and contain the information as
	1516	+	46.14prescribed by the National Association of Insurance Commissioners relating to those markets
	1517	+	46.15that, under subdivision 2, paragraph (b), clause (5) (4), cause the acquisition not to be
	1518	+	46.16exempted from the provisions of this section. The commissioner may require the additional
	1519	+	46.17material and information as the commissioner deems necessary to determine whether the
	1520	+	46.18proposed acquisition, if consummated, would violate the competitive standard of subdivision
	1521	+	46.194. The required information may include an opinion of an economist as to the competitive
	1522	+	46.20impact of the acquisition in this state accompanied by a summary of the education and
	1523	+	46.21experience of the person indicating that person's ability to render an informed opinion.
	1524	+	46.22 (c) The waiting period required begins on the date of receipt of the commissioner of a
	1525	+	46.23preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
	1526	+	46.24or termination of the waiting period by the commissioner. Before the end of the waiting
	1527	+	46.25period, the commissioner on a onetime basis may require the submission of additional
	1528	+	46.26needed information relevant to the proposed acquisition, in which event the waiting period
	1529	+	46.27shall end on the earlier of the 30th day after receipt of the additional information by the
	1530	+	46.28commissioner or termination of the waiting period by the commissioner.
	1531	+	46.29Sec. 17. Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:
	1532	+	46.30 Subd. 4.Materiality.No information need be disclosed on the registration statement
	1533	+	46.31filed pursuant to subdivision 2 if the information is not material for the purposes of this
	1534	+	46.32section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
	1535	+	46.33exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
1538	1536		46Article 4 Sec. 17.
1539		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 47.~~1impact~~ of the ~~acquisition in this state accompanied by a summary~~ of ~~the education and~~
1540		-	47.~~2experience~~ of the ~~person indicating that person's ability to render an informed opinion.~~
1541		-	47.~~3 (c) The waiting period required begins on the date of receipt~~ of the ~~commissioner of a~~
1542		-	47.~~4preacquisition notification and ends on~~ the ~~earlier of the 30th day after the date of its receipt,~~
1543		-	47.~~5or termination of the waiting period~~ by ~~the commissioner.~~ ~~Before the end of the waiting~~
1544		-	47.~~6period, the commissioner on a onetime basis may require the submission of additional~~
1545		-	47.~~7needed information relevant to the proposed acquisition,~~ in ~~which event the waiting period~~
1546		-	47.~~8shall end on the earlier~~ of ~~the 30th day after receipt of the additional information by the~~
1547		-	47.~~9commissioner or termination of~~ the ~~waiting period~~ by the ~~commissioner.~~
1548		-	47.~~10Sec~~. ~~18. Minnesota Statutes 2024,~~ ~~section 60D.19, subdivision 4,~~ ~~is amended to read:~~
1549		-	47.~~11 Subd.~~ ~~4.Materiality.No information need be disclosed on~~ the ~~registration statement~~
1550		-	47.~~12filed pursuant to subdivision 2 if the information~~ is not ~~material for~~ the ~~purposes of this~~
1551		-	47.~~13section~~. ~~Unless~~ the commissioner ~~by rule or order provides otherwise; sales, purchases,~~
1552		-	47.~~14exchanges~~, ~~loans or extensions of credit,~~ ~~investments, or guarantees involving one-half of~~
1553		-	47.~~15one percent or less of an insurer's admitted assets as of~~ the ~~31st day of December next~~
1554		-	47.~~16preceding shall not be deemed material for purposes of this section.~~ The ~~definition of~~
1555		-	47.~~17materiality provided in this subdivision does not apply for purposes of the group capital~~
1556		-	47.~~18calculation or~~ the ~~NAIC liquidity stress test framework.~~
1557		-	47.~~19Sec. 19.~~ ~~Minnesota Statutes 2024~~, ~~section 60D.19,~~ is ~~amended by adding a subdivision to~~
1558		-	47.~~20read:~~
1559		-	47.~~21 Subd.~~ ~~11b.Group capital calculation.(a) Except as otherwise provided in this paragraph,~~
1560		-	47.~~22the ultimate controlling person of every insurer subject~~ to ~~registration must concurrently~~
1561		-	47.~~23file with~~ the ~~registration an annual group capital calculation as directed by~~ the lead state
1562		-	47.~~24insurance commissioner.~~ The ~~report must be completed in accordance with~~ the ~~NAIC group~~
1563		-	47.~~25capital calculation instructions,~~ ~~which may permit~~ the ~~lead state insurance commissioner~~
1564		-	47.~~26to allow a controlling person that is not~~ the ~~ultimate controlling person to file~~ the ~~group~~
1565		-	47.~~27capital calculation.~~ The ~~report must be filed with the lead state insurance commissioner of~~
1566		-	47.~~28the~~ insurance holding company system~~, as determined by the commissioner in accordance~~
1567		-	47.~~29with the procedures~~ within ~~the Financial Analysis Handbook adopted by the NAIC~~. ~~The~~
1568		-	47.~~30following insurance holding company systems are exempt from filing~~ the group ~~capital~~
1569		-	47.~~31calculation:~~
1570		-	47.32 (1) an insurance holding company system ~~that (i) has only one insurer within the insurance~~
1571		-	47.~~33holding company system's holding company structure, (ii) only writes business and is only~~
1572		-	47~~Article 4 Sec~~. ~~19.~~
1573		-	~~S2216-2 2nd EngrossmentSF2216 REVISOR RSI~~ 48.~~1licensed in~~ the ~~insurance holding company system's domestic state,~~ and ~~(iii) assumes no~~
1574		-	48.~~2business from any other insurer;~~
1575		-	48.~~3 (2) an~~ insurance ~~holding company system that is required~~ to ~~perform a group capital~~
1576		-	48.~~4calculation specified by~~ the ~~United States Federal Reserve Board. The lead state insurance~~
1577		-	48.~~5commissioner must request the calculation from the Federal Reserve Board under the terms~~
1578		-	48.~~6of information sharing agreements~~ in ~~effect. If the Federal Reserve Board is unable to share~~
1579		-	48.~~7the calculation with~~ the ~~lead state insurance commissioner~~, the ~~insurance holding company~~
1580		-	48.~~8system is not exempt from~~ the group capital ~~calculation filing;~~
1581		-	48.~~9 (3) an insurance holding company system whose non-United States groupwide supervisor~~
1582		-	48.~~10is located within~~ a ~~reciprocal jurisdiction as described in section 60A.092, subdivision 10b,~~
1583		-	48.~~11that recognizes~~ the United States ~~state regulatory approach to group supervision and group~~
1584		-	48.~~12capital; or~~
1585		-	48.~~13 (4) an insurance holding company system:~~
1586		-	48.~~14 (i) that provides information to~~ the lead state insurance commissioner ~~that meets the~~
1587		-	48.~~15requirements~~ for ~~accreditation under~~ the ~~NAIC financial standards and accreditation program,~~
1588		-	48.~~16either directly or indirectly through the groupwide supervisor, that has determined the~~
1589		-	48.~~17information is satisfactory to allow~~ the ~~lead state insurance commissioner to comply with~~
1590		-	48.~~18the NAIC group supervision approach~~, ~~as detailed in~~ the ~~NAIC Financial Analysis Handbook;~~
1591		-	48.~~19and~~
1592		-	48.~~20 (ii) whose non-United States groupwide supervisor that is not~~ in ~~a reciprocal jurisdiction~~
1593		-	48.~~21recognizes and accepts, as specified by the commissioner in an administrative rule, the~~
1594		-	48.~~22group capital calculation as~~ the ~~worldwide group capital assessment for United States~~
1595		-	48.~~23insurance groups that operate in that jurisdiction.~~
1596		-	48.~~24 (b) Notwithstanding paragraph (a)~~, ~~clauses (3) and (4), a lead state~~ insurance
1597		-	48.~~25commissioner must require~~ the group capital calculation ~~for~~ the ~~United States operations~~
1598		-	48.~~26of any non-United~~ ~~States~~ based ~~insurance holding company system where, after any necessary~~
1599		-	48.~~27consultation with other supervisors or officials~~, ~~requiring the group capital calculation~~ is
1600		-	48.~~28deemed appropriate by the lead state insurance commissioner for prudential oversight and~~
1601		-	48.~~29solvency monitoring purposes or for ensuring~~ the ~~competitiveness~~ of ~~the insurance~~
1602		-	48.~~30marketplace.~~
1603		-	48.~~31 (c) Notwithstanding~~ the ~~exemptions from~~ filing the ~~group capital calculation under~~
1604		-	48.~~32paragraph (a), the lead state~~ insurance commissioner ~~may exempt~~ the ~~ultimate controlling~~
1605		-	48.~~33person from filing~~ the ~~annual group capital calculation or accept a limited group capital~~
	1537	+	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
	1538	+	47.2preceding shall not be deemed material for purposes of this section. The definition of
	1539	+	47.3materiality provided in this subdivision does not apply for purposes of the group capital
	1540	+	47.4calculation or the NAIC liquidity stress test framework.
	1541	+	47.5 Sec. 18. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
	1542	+	47.6read:
	1543	+	47.7 Subd. 11b.Group capital calculation.(a) Except as otherwise provided in this paragraph,
	1544	+	47.8the ultimate controlling person of every insurer subject to registration must concurrently
	1545	+	47.9file with the registration an annual group capital calculation as directed by the lead state
	1546	+	47.10insurance commissioner. The report must be completed in accordance with the NAIC group
	1547	+	47.11capital calculation instructions, which may permit the lead state insurance commissioner
	1548	+	47.12to allow a controlling person that is not the ultimate controlling person to file the group
	1549	+	47.13capital calculation. The report must be filed with the lead state insurance commissioner of
	1550	+	47.14the insurance holding company system, as determined by the commissioner in accordance
	1551	+	47.15with the procedures within the Financial Analysis Handbook adopted by the NAIC. The
	1552	+	47.16following insurance holding company systems are exempt from filing the group capital
	1553	+	47.17calculation:
	1554	+	47.18 (1) an insurance holding company system that (i) has only one insurer within the insurance
	1555	+	47.19holding company system's holding company structure, (ii) only writes business and is only
	1556	+	47.20licensed in the insurance holding company system's domestic state, and (iii) assumes no
	1557	+	47.21business from any other insurer;
	1558	+	47.22 (2) an insurance holding company system that is required to perform a group capital
	1559	+	47.23calculation specified by the United States Federal Reserve Board. The lead state insurance
	1560	+	47.24commissioner must request the calculation from the Federal Reserve Board under the terms
	1561	+	47.25of information sharing agreements in effect. If the Federal Reserve Board is unable to share
	1562	+	47.26the calculation with the lead state insurance commissioner, the insurance holding company
	1563	+	47.27system is not exempt from the group capital calculation filing;
	1564	+	47.28 (3) an insurance holding company system whose non-United States groupwide supervisor
	1565	+	47.29is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
	1566	+	47.30that recognizes the United States state regulatory approach to group supervision and group
	1567	+	47.31capital; or
	1568	+	47.32 (4) an insurance holding company system:
	1569	+	47Article 4 Sec. 18.
	1570	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 48.1 (i) that provides information to the lead state insurance commissioner that meets the
	1571	+	48.2requirements for accreditation under the NAIC financial standards and accreditation program,
	1572	+	48.3either directly or indirectly through the groupwide supervisor, that has determined the
	1573	+	48.4information is satisfactory to allow the lead state insurance commissioner to comply with
	1574	+	48.5the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook;
	1575	+	48.6and
	1576	+	48.7 (ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
	1577	+	48.8recognizes and accepts, as specified by the commissioner in an administrative rule, the
	1578	+	48.9group capital calculation as the worldwide group capital assessment for United States
	1579	+	48.10insurance groups that operate in that jurisdiction.
	1580	+	48.11 (b) Notwithstanding paragraph (a), clauses (3) and (4), a lead state insurance
	1581	+	48.12commissioner must require the group capital calculation for the United States operations
	1582	+	48.13of any non-United States based insurance holding company system where, after any necessary
	1583	+	48.14consultation with other supervisors or officials, requiring the group capital calculation is
	1584	+	48.15deemed appropriate by the lead state insurance commissioner for prudential oversight and
	1585	+	48.16solvency monitoring purposes or for ensuring the competitiveness of the insurance
	1586	+	48.17marketplace.
	1587	+	48.18 (c) Notwithstanding the exemptions from filing the group capital calculation under
	1588	+	48.19paragraph (a), the lead state insurance commissioner may exempt the ultimate controlling
	1589	+	48.20person from filing the annual group capital calculation or accept a limited group capital
	1590	+	48.21filing or report in accordance with criteria specified by the commissioner in an administrative
	1591	+	48.22rule.
	1592	+	48.23 (d) If the lead state insurance commissioner determines that an insurance holding company
	1593	+	48.24system no longer meets one or more of the requirements for an exemption from filing the
	1594	+	48.25group capital calculation under this subdivision, the insurance holding company system
	1595	+	48.26must file the group capital calculation at the next annual filing date unless given an extension
	1596	+	48.27by the lead state insurance commissioner based on reasonable grounds shown.
	1597	+	48.28Sec. 19. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
	1598	+	48.29read:
	1599	+	48.30 Subd. 11c.Liquidity stress test.(a) The ultimate controlling person of every insurer
	1600	+	48.31subject to registration and also scoped into the NAIC liquidity stress test framework must
	1601	+	48.32file the results of a specific year's liquidity stress test. The filing must be made to the lead
	1602	+	48.33state insurance commissioner of the insurance holding company system, as determined by
	1603	+	48.34the procedures within the Financial Analysis Handbook adopted by the NAIC.
1606	1604		48Article 4 Sec. 19.
1607		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 49.1filing or report in accordance with criteria specified by the commissioner in an administrative
1608		-	49.2rule.
1609		-	49.3 (d) If the lead state insurance commissioner determines that an insurance holding company
1610		-	49.4system no longer meets one or more of the requirements for an exemption from filing the
1611		-	49.5group capital calculation under this subdivision, the insurance holding company system
1612		-	49.6must file the group capital calculation at the next annual filing date unless given an extension
1613		-	49.7by the lead state insurance commissioner based on reasonable grounds shown.
1614		-	49.8 Sec. 20. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
1615		-	49.9read:
1616		-	49.10 Subd. 11c.Liquidity stress test.(a) The ultimate controlling person of every insurer
1617		-	49.11subject to registration and also scoped into the NAIC liquidity stress test framework must
1618		-	49.12file the results of a specific year's liquidity stress test. The filing must be made to the lead
1619		-	49.13state insurance commissioner of the insurance holding company system, as determined by
1620		-	49.14the procedures within the Financial Analysis Handbook adopted by the NAIC.
1621		-	49.15 (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
1622		-	49.16specific data year. The scope criteria must be reviewed at least annually by the NAIC
1623		-	49.17Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
1624		-	49.18change made to the NAIC liquidity stress test framework or to the data year for which the
1625		-	49.19scope criteria must be measured is effective January 1 of the year following the calendar
1626		-	49.20year in which the change is adopted. An insurer meeting at least one threshold of the scope
1627		-	49.21criteria is scoped into the NAIC liquidity stress test framework for the specified data year
1628		-	49.22unless the lead state insurance commissioner, in consultation with the NAIC Financial
1629		-	49.23Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
1630		-	49.24the insurer should not be scoped into the framework for that data year. An insurer that does
1631		-	49.25not trigger at least one threshold of the scope criteria is scoped out of the NAIC liquidity
1632		-	49.26stress test framework for the specified data year unless the lead state insurance commissioner,
1633		-	49.27in consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
1634		-	49.28Task Force's successor, determines the insurer should be scoped into the framework for the
1635		-	49.29specified data year.
1636		-	49.30 (c) The commissioner and other state insurance commissioners must avoid scoping
1637		-	49.31insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The lead
1638		-	49.32state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
1639		-	49.33or the NAIC Financial Stability Task Force's successor, must assess irregular scope status
1640		-	49.34as part of an insurer's determination.
	1605	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 49.1 (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
	1606	+	49.2specific data year. The scope criteria must be reviewed at least annually by the NAIC
	1607	+	49.3Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
	1608	+	49.4change made to the NAIC liquidity stress test framework or to the data year for which the
	1609	+	49.5scope criteria must be measured is effective January 1 of the year following the calendar
	1610	+	49.6year in which the change is adopted. An insurer meeting at least one threshold of the scope
	1611	+	49.7criteria is scoped into the NAIC liquidity stress test framework for the specified data year
	1612	+	49.8unless the lead state insurance commissioner, in consultation with the NAIC Financial
	1613	+	49.9Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
	1614	+	49.10the insurer should not be scoped into the framework for that data year. An insurer that does
	1615	+	49.11not trigger at least one threshold of the scope criteria is scoped out of the NAIC liquidity
	1616	+	49.12stress test framework for the specified data year unless the lead state insurance commissioner,
	1617	+	49.13in consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
	1618	+	49.14Task Force's successor, determines the insurer should be scoped into the framework for the
	1619	+	49.15specified data year.
	1620	+	49.16 (c) The commissioner and other state insurance commissioners must avoid scoping
	1621	+	49.17insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The lead
	1622	+	49.18state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
	1623	+	49.19or the NAIC Financial Stability Task Force's successor, must assess irregular scope status
	1624	+	49.20as part of an insurer's determination.
	1625	+	49.21 (d) The performance of and filing of the results from a specific year's liquidity stress
	1626	+	49.22test must comply with (1) the NAIC liquidity stress test framework's instructions and
	1627	+	49.23reporting templates for the specific year, and (2) any lead state insurance commissioner
	1628	+	49.24determinations, in consultation with the NAIC Financial Stability Task Force or the NAIC
	1629	+	49.25Financial Stability Task Force's successor, provided within the framework.
	1630	+	49.26Sec. 20. [60D.195] GROUP CAPITAL CALCULATION.
	1631	+	49.27 Subdivision 1.Annual group capital calculation; exemption permitted.The lead
	1632	+	49.28state insurance commissioner may exempt the ultimate controlling person from filing the
	1633	+	49.29annual group capital calculation if the lead state insurance commissioner makes a
	1634	+	49.30determination that the insurance holding company system meets the following criteria:
	1635	+	49.31 (1) has annual direct written and unaffiliated assumed premium, including international
	1636	+	49.32direct and assumed premium but excluding premiums reinsured with the Federal Crop
	1637	+	49.33Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
1641	1638		49Article 4 Sec. 20.
1642		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 50.1 (d) The performance of and filing of the results from a specific year's liquidity stress
1643		-	50.2test must comply with (1) the NAIC liquidity stress test framework's instructions and
1644		-	50.3reporting templates for the specific year, and (2) any lead state insurance commissioner
1645		-	50.4determinations, in consultation with the NAIC Financial Stability Task Force or the NAIC
1646		-	50.5Financial Stability Task Force's successor, provided within the framework.
1647		-	50.6 Sec. 21. [60D.195] GROUP CAPITAL CALCULATION.
1648		-	50.7 Subdivision 1.Annual group capital calculation; exemption permitted.The lead
1649		-	50.8state insurance commissioner may exempt the ultimate controlling person from filing the
1650		-	50.9annual group capital calculation if the lead state insurance commissioner makes a
1651		-	50.10determination that the insurance holding company system meets the following criteria:
1652		-	50.11 (1) has annual direct written and unaffiliated assumed premium, including international
1653		-	50.12direct and assumed premium but excluding premiums reinsured with the Federal Crop
1654		-	50.13Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
1655		-	50.14 (2) has no insurers within the insurance holding company's structure that are domiciled
1656		-	50.15outside of the United States or a United States territory;
1657		-	50.16 (3) has no banking, depository, or other financial entity that is subject to an identified
1658		-	50.17regulatory capital framework within the insurance holding company's structure;
1659		-	50.18 (4) attests that no material changes in the transactions between insurers and noninsurers
1660		-	50.19in the group have occurred since the last annual group capital filing; and
1661		-	50.20 (5) the noninsurers within the holding company system do not pose a material financial
1662		-	50.21risk to the insurer's ability to honor policyholder obligations.
1663		-	50.22 Subd. 2.Limited group capital filing.The lead state insurance commissioner may
1664		-	50.23accept a limited group capital filing in lieu of the group capital calculation if:
1665		-	50.24 (1) the insurance holding company system has annual direct written and unaffiliated
1666		-	50.25assumed premium, including international direct and assumed premium but excluding
1667		-	50.26premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
1668		-	50.27of less than $1,000,000,000; and
1669		-	50.28 (2) the insurance holding company system:
1670		-	50.29 (i) has no insurers within the insurance holding company's structure that are domiciled
1671		-	50.30outside of the United States or a United States territory;
1672		-	50.31 (ii) does not include a banking, depository, or other financial entity that is subject to an
1673		-	50.32identified regulatory capital framework; and
1674		-	50Article 4 Sec. 21.
1675		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 51.1 (iii) attests that no material changes in transactions between insurers and noninsurers in
1676		-	51.2the group have occurred and the noninsurers within the holding company system do not
1677		-	51.3pose a material financial risk to the insurer's ability to honor policyholder obligations.
1678		-	51.4 Subd. 3.Previous exemption; required filing.For an insurance holding company that
1679		-	51.5has previously met an exemption with respect to the group capital calculation under
1680		-	51.6subdivision 1 or 2, the lead state insurance commissioner may at any time require the ultimate
1681		-	51.7controlling person to file an annual group capital calculation, completed in accordance with
1682		-	51.8the NAIC group capital calculation instructions, if:
1683		-	51.9 (1) an insurer within the insurance holding company system is in a risk-based capital
1684		-	51.10action level event under section 60A.62 or a similar standard for a non-United States insurer;
1685		-	51.11 (2) an insurer within the insurance holding company system meets one or more of the
1686		-	51.12standards of an insurer deemed to be in hazardous financial condition, as defined under
1687		-	51.13section 60E.02, subdivision 5; or
1688		-	51.14 (3) an insurer within the insurance holding company system otherwise exhibits qualities
1689		-	51.15of a troubled insurer, as determined by the lead state insurance commissioner based on
1690		-	51.16unique circumstances, including but not limited to the type and volume of business written,
1691		-	51.17ownership and organizational structure, federal agency requests, and international supervisor
1692		-	51.18requests.
1693		-	51.19 Subd. 4.Non-United States jurisdictions; recognition and acceptance.A non-United
1694		-	51.20States jurisdiction is deemed to recognize and accept the group capital calculation if the
1695		-	51.21non-United States jurisdiction:
1696		-	51.22 (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
1697		-	51.23 (i) recognizes the United States state regulatory approach to group supervision and group
1698		-	51.24capital by providing confirmation by a competent regulatory authority in the non-United
1699		-	51.25States jurisdiction that insurers and insurance groups whose lead state is accredited by the
1700		-	51.26NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
1701		-	51.27insurance group supervision, including worldwide group governance, solvency and capital,
1702		-	51.28and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
1703		-	51.29including worldwide group governance, solvency and capital, and reporting, at the level of
1704		-	51.30the worldwide parent undertaking of the insurance or reinsurance group by the non-United
1705		-	51.31States jurisdiction; or
1706		-	51.32 (ii) if no United States insurance group operates in the non-United States jurisdiction,
1707		-	51.33indicates formally in writing to the lead state with a copy to the International Association
1708		-	51Article 4 Sec. 21.
1709		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 52.1of Insurance Supervisors that the group capital calculation is an acceptable international
1710		-	52.2capital standard. The formal indication under this item serves as the documentation otherwise
1711		-	52.3required under item (i); and
1712		-	52.4 (2) provides confirmation by a competent regulatory authority in the non-United States
1713		-	52.5jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
1714		-	52.6affiliated entities, if applicable, must be provided to the lead state insurance commissioner
1715		-	52.7in accordance with a memorandum of understanding or similar document between the
1716		-	52.8commissioner and the non-United States jurisdiction, including but not limited to the
1717		-	52.9International Association of Insurance Supervisors Multilateral Memorandum of
1718		-	52.10Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
1719		-	52.11The commissioner must determine, in consultation with the NAIC committee process, if
1720		-	52.12the information sharing agreement requirements are effective.
1721		-	52.13 Subd. 5.Non-United States jurisdiction; publication.(a) A list of non-United States
1722		-	52.14jurisdictions that recognize and accept the group capital calculation under section 60D.19,
1723		-	52.15subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
1724		-	52.16process to assist the lead state insurance commissioner determine what insurers must file
1725		-	52.17an annual group capital calculation. The list must clarify the situations in which a jurisdiction
1726		-	52.18is exempt from filing under section 60D.19, subdivision 11b, paragraph (a), clause (4). To
1727		-	52.19assist with a determination under section 60D.19, subdivision 11b, paragraph (b), the list
1728		-	52.20must also identify whether a jurisdiction that is exempt under section 60D.19, subdivision
1729		-	52.2111b, paragraph (a), clause (3) or (4), requires a group capital filing for any United States
1730		-	52.22insurance group's operations in the non-United States jurisdiction.
1731		-	52.23 (b) For a non-United States jurisdiction where no United States insurance group operates,
1732		-	52.24the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
1733		-	52.25support for a recommendation to be published that the non-United States jurisdiction is a
1734		-	52.26jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
1735		-	52.27committee process.
1736		-	52.28 (c) If the lead state insurance commissioner makes a determination pursuant to section
1737		-	52.2960D.19, subdivision 11b, that differs from the NAIC list, the lead state insurance
1738		-	52.30commissioner must provide thoroughly documented justification to the NAIC and other
1739		-	52.31states.
1740		-	52.32 (d) Upon a determination by the lead state insurance commissioner that a non-United
1741		-	52.33States jurisdiction no longer meets one or more of the requirements to recognize and accept
1742		-	52.34the group capital calculation, the lead state insurance commissioner may provide a
	1639	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 50.1 (2) has no insurers within the insurance holding company's structure that are domiciled
	1640	+	50.2outside of the United States or a United States territory;
	1641	+	50.3 (3) has no banking, depository, or other financial entity that is subject to an identified
	1642	+	50.4regulatory capital framework within the insurance holding company's structure;
	1643	+	50.5 (4) attests that no material changes in the transactions between insurers and noninsurers
	1644	+	50.6in the group have occurred since the last annual group capital filing; and
	1645	+	50.7 (5) the noninsurers within the holding company system do not pose a material financial
	1646	+	50.8risk to the insurer's ability to honor policyholder obligations.
	1647	+	50.9 Subd. 2.Limited group capital filing.The lead state insurance commissioner may
	1648	+	50.10accept a limited group capital filing in lieu of the group capital calculation if:
	1649	+	50.11 (1) the insurance holding company system has annual direct written and unaffiliated
	1650	+	50.12assumed premium, including international direct and assumed premium but excluding
	1651	+	50.13premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
	1652	+	50.14of less than $1,000,000,000; and
	1653	+	50.15 (2) the insurance holding company system:
	1654	+	50.16 (i) has no insurers within the insurance holding company's structure that are domiciled
	1655	+	50.17outside of the United States or a United States territory;
	1656	+	50.18 (ii) does not include a banking, depository, or other financial entity that is subject to an
	1657	+	50.19identified regulatory capital framework; and
	1658	+	50.20 (iii) attests that no material changes in transactions between insurers and noninsurers in
	1659	+	50.21the group have occurred and the noninsurers within the holding company system do not
	1660	+	50.22pose a material financial risk to the insurer's ability to honor policyholder obligations.
	1661	+	50.23 Subd. 3.Previous exemption; required filing.For an insurance holding company that
	1662	+	50.24has previously met an exemption with respect to the group capital calculation under
	1663	+	50.25subdivision 1 or 2, the lead state insurance commissioner may at any time require the ultimate
	1664	+	50.26controlling person to file an annual group capital calculation, completed in accordance with
	1665	+	50.27the NAIC group capital calculation instructions, if:
	1666	+	50.28 (1) an insurer within the insurance holding company system is in a risk-based capital
	1667	+	50.29action level event under section 60A.62 or a similar standard for a non-United States insurer;
	1668	+	50.30 (2) an insurer within the insurance holding company system meets one or more of the
	1669	+	50.31standards of an insurer deemed to be in hazardous financial condition, as defined under
	1670	+	50.32section 60E.02, subdivision 5; or
	1671	+	50Article 4 Sec. 20.
	1672	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 51.1 (3) an insurer within the insurance holding company system otherwise exhibits qualities
	1673	+	51.2of a troubled insurer, as determined by the lead state insurance commissioner based on
	1674	+	51.3unique circumstances, including but not limited to the type and volume of business written,
	1675	+	51.4ownership and organizational structure, federal agency requests, and international supervisor
	1676	+	51.5requests.
	1677	+	51.6 Subd. 4.Non-United States jurisdictions; recognition and acceptance.A non-United
	1678	+	51.7States jurisdiction is deemed to recognize and accept the group capital calculation if the
	1679	+	51.8non-United States jurisdiction:
	1680	+	51.9 (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
	1681	+	51.10 (i) recognizes the United States state regulatory approach to group supervision and group
	1682	+	51.11capital by providing confirmation by a competent regulatory authority in the non-United
	1683	+	51.12States jurisdiction that insurers and insurance groups whose lead state is accredited by the
	1684	+	51.13NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
	1685	+	51.14insurance group supervision, including worldwide group governance, solvency and capital,
	1686	+	51.15and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
	1687	+	51.16including worldwide group governance, solvency and capital, and reporting, at the level of
	1688	+	51.17the worldwide parent undertaking of the insurance or reinsurance group by the non-United
	1689	+	51.18States jurisdiction; or
	1690	+	51.19 (ii) if no United States insurance group operates in the non-United States jurisdiction,
	1691	+	51.20indicates formally in writing to the lead state with a copy to the International Association
	1692	+	51.21of Insurance Supervisors that the group capital calculation is an acceptable international
	1693	+	51.22capital standard. The formal indication under this item serves as the documentation otherwise
	1694	+	51.23required under item (i); and
	1695	+	51.24 (2) provides confirmation by a competent regulatory authority in the non-United States
	1696	+	51.25jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
	1697	+	51.26affiliated entities, if applicable, must be provided to the lead state insurance commissioner
	1698	+	51.27in accordance with a memorandum of understanding or similar document between the
	1699	+	51.28commissioner and the non-United States jurisdiction, including but not limited to the
	1700	+	51.29International Association of Insurance Supervisors Multilateral Memorandum of
	1701	+	51.30Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
	1702	+	51.31The commissioner must determine, in consultation with the NAIC committee process, if
	1703	+	51.32the information sharing agreement requirements are effective.
	1704	+	51.33 Subd. 5.Non-United States jurisdiction; publication.(a) A list of non-United States
	1705	+	51.34jurisdictions that recognize and accept the group capital calculation under section 60D.19,
	1706	+	51Article 4 Sec. 20.
	1707	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 52.1subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
	1708	+	52.2process to assist the lead state insurance commissioner determine what insurers must file
	1709	+	52.3an annual group capital calculation. The list must clarify the situations in which a jurisdiction
	1710	+	52.4is exempt from filing under section 60D.19, subdivision 11b, paragraph (a), clause (4). To
	1711	+	52.5assist with a determination under section 60D.19, subdivision 11b, paragraph (b), the list
	1712	+	52.6must also identify whether a jurisdiction that is exempt under section 60D.19, subdivision
	1713	+	52.711b, paragraph (a), clause (3) or (4), requires a group capital filing for any United States
	1714	+	52.8insurance group's operations in the non-United States jurisdiction.
	1715	+	52.9 (b) For a non-United States jurisdiction where no United States insurance group operates,
	1716	+	52.10the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
	1717	+	52.11support for a recommendation to be published that the non-United States jurisdiction is a
	1718	+	52.12jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
	1719	+	52.13committee process.
	1720	+	52.14 (c) If the lead state insurance commissioner makes a determination pursuant to section
	1721	+	52.1560D.19, subdivision 11b, that differs from the NAIC list, the lead state insurance
	1722	+	52.16commissioner must provide thoroughly documented justification to the NAIC and other
	1723	+	52.17states.
	1724	+	52.18 (d) Upon a determination by the lead state insurance commissioner that a non-United
	1725	+	52.19States jurisdiction no longer meets one or more of the requirements to recognize and accept
	1726	+	52.20the group capital calculation, the lead state insurance commissioner may provide a
	1727	+	52.21recommendation to the NAIC that the non-United States jurisdiction be removed from the
	1728	+	52.22list of jurisdictions that recognize and accept the group capital calculation.
	1729	+	52.23Sec. 21. Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:
	1730	+	52.24 Subdivision 1.Transactions within an insurance holding company system.(a)
	1731	+	52.25Transactions within an insurance holding company system to which an insurer subject to
	1732	+	52.26registration is a party are subject to the following standards:
	1733	+	52.27 (1) the terms shall be fair and reasonable;
	1734	+	52.28 (2) agreements for cost-sharing services and management shall include the provisions
	1735	+	52.29required by rule issued by the commissioner;
	1736	+	52.30 (3) charges or fees for services performed shall be reasonable;
	1737	+	52.31 (4) expenses incurred and payment received shall be allocated to the insurer in conformity
	1738	+	52.32with customary insurance accounting practices consistently applied;
1743	1739		52Article 4 Sec. 21.
1744		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 53.1recommendation to the NAIC that the non-United States jurisdiction be removed from the
1745		-	53.2list of jurisdictions that recognize and accept the group capital calculation.
1746		-	53.3 Sec. 22. Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:
1747		-	53.4 Subdivision 1.Transactions within an insurance holding company system.(a)
1748		-	53.5Transactions within an insurance holding company system to which an insurer subject to
1749		-	53.6registration is a party are subject to the following standards:
1750		-	53.7 (1) the terms shall be fair and reasonable;
1751		-	53.8 (2) agreements for cost-sharing services and management shall include the provisions
1752		-	53.9required by rule issued by the commissioner;
1753		-	53.10 (3) charges or fees for services performed shall be reasonable;
1754		-	53.11 (4) expenses incurred and payment received shall be allocated to the insurer in conformity
1755		-	53.12with customary insurance accounting practices consistently applied;
1756		-	53.13 (5) the books, accounts, and records of each party to all such transactions shall be so
1757		-	53.14maintained as to clearly and accurately disclose the nature and details of the transactions
1758		-	53.15including this accounting information as is necessary to support the reasonableness of the
1759		-	53.16charges or fees to the respective parties; and
1760		-	53.17 (6) the insurer's surplus as regards policyholders following any dividends or distributions
1761		-	53.18to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
1762		-	53.19and adequate to its financial needs.;
1763		-	53.20 (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
1764		-	53.21financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
1765		-	53.22be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
1766		-	53.23may require the insurer to secure and maintain either a deposit, held by the commissioner,
1767		-	53.24or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
1768		-	53.25the duration of the contract, agreement, or the existence of the condition for which the
1769		-	53.26commissioner required the deposit or bond. When determining whether a deposit or bond
1770		-	53.27is required, the commissioner must consider whether concerns exist with respect to the
1771		-	53.28affiliated person's ability to fulfill the contract or agreement if the insurer entered into
1772		-	53.29liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
1773		-	53.30that would be grounds for supervision, conservation, or a delinquency proceeding, and a
1774		-	53.31deposit or bond is necessary, the commissioner may determine the amount of the deposit
1775		-	53.32or bond, not to exceed the value of the contract or agreement in any one year, and whether
1776		-	53Article 4 Sec. 22.
1777		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 54.1the deposit or bond is required for a single contract, multiple contracts, or a contract only
1778		-	54.2with a specific person or persons;
1779		-	54.3 (8) all of an insurer's records and data held by an affiliate are and remain the property
1780		-	54.4of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
1781		-	54.5readily capable of segregation, at no additional cost to the insurer, from all other persons'
1782		-	54.6records and data. For purposes of this clause, records and data include all records and data
1783		-	54.7that are otherwise the property of the insurer in whatever form maintained, including but
1784		-	54.8not limited to claims and claim files, policyholder lists, application files, litigation files,
1785		-	54.9premium records, rate books, underwriting manuals, personnel records, financial records,
1786		-	54.10or similar records within the affiliate's possession, custody, or control. At the request of the
1787		-	54.11insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
1788		-	54.12of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
1789		-	54.13on which the data are maintained, (iii) obtain the software that runs the operating systems
1790		-	54.14either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
1791		-	54.15the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
1792		-	54.16must provide a waiver of any landlord lien or other encumbrance to provide the insurer
1793		-	54.17access to all records and data in the event the affiliate defaults under a lease or other
1794		-	54.18agreement; and
1795		-	54.19 (9) premiums or other funds belonging to the insurer that are collected or held by an
1796		-	54.20affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
1797		-	54.21Any right of offset in the event an insurer is placed into receivership is subject to chapter
1798		-	54.22576.
1799		-	54.23 (b) The following transactions involving a domestic insurer and any person in its
1800		-	54.24insurance holding company system, including amendments or modifications of affiliate
1801		-	54.25agreements previously filed pursuant to this section, which are subject to any materiality
1802		-	54.26standards contained in clauses (1) to (7), may not be entered into unless the insurer has
1803		-	54.27notified the commissioner in writing of its intention to enter into the transaction at least 30
1804		-	54.28days prior thereto, or a shorter period the commissioner permits, and the commissioner has
1805		-	54.29not disapproved it within this period. The notice for amendments or modifications must
1806		-	54.30include the reasons for the change and the financial impact on the domestic insurer. Informal
1807		-	54.31notice must be reported, within 30 days after a termination of a previously filed agreement,
1808		-	54.32to the commissioner for determination of the type of filing required, if any:
1809		-	54.33 (1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
1810		-	54.34provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
1811		-	54.35lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
1812		-	54Article 4 Sec. 22.
1813		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 55.1policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
1814		-	55.2each as of the 31st day of December next preceding;
1815		-	55.3 (2) loans or extensions of credit to any person who is not an affiliate, where the insurer
1816		-	55.4makes the loans or extensions of credit with the agreement or understanding that the proceeds
1817		-	55.5of the transactions, in whole or in substantial part, are to be used to make loans or extensions
1818		-	55.6of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
1819		-	55.7making such loans or extensions of credit provided the transactions are equal to or exceed:
1820		-	55.8(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
1821		-	55.9or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
1822		-	55.10percent of the insurer's admitted assets; each as of the 31st day of December next preceding;
1823		-	55.11 (3) reinsurance agreements or modifications to those agreements, including: (i) all
1824		-	55.12reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
1825		-	55.13a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
1826		-	55.14insurer's liabilities in any of the next three years, equals or exceeds five percent of the
1827		-	55.15insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
1828		-	55.16including those agreements which may require as consideration the transfer of assets from
1829		-	55.17an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
1830		-	55.18nonaffiliate that any portion of such the assets will be transferred to one or more affiliates
1831		-	55.19of the insurer;
1832		-	55.20 (4) all management agreements, service contracts, tax allocation agreements, guarantees,
1833		-	55.21and all cost-sharing arrangements;
1834		-	55.22 (5) guarantees when made by a domestic insurer; provided, however, that a guarantee
1835		-	55.23which is quantifiable as to amount is not subject to the notice requirements of this paragraph
1836		-	55.24unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
1837		-	55.25percent of surplus as regards policyholders as of the 31st day of December next preceding.
1838		-	55.26Further, all guarantees which are not quantifiable as to amount are subject to the notice
1839		-	55.27requirements of this paragraph;
1840		-	55.28 (6) direct or indirect acquisitions or investments in a person that controls the insurer or
1841		-	55.29in an affiliate of the insurer in an amount which, together with its present holdings in the
1842		-	55.30investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
1843		-	55.31acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, as otherwise
1844		-	55.32authorized under this chapter, or in nonsubsidiary insurance affiliates that are subject to the
1845		-	55.33provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and
1846		-	55Article 4 Sec. 22.
1847		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 56.1 (7) any material transactions, specified by regulation, which the commissioner determines
1848		-	56.2may adversely affect the interests of the insurer's policyholders.
1849		-	56.3 Nothing contained in this section authorizes or permits any transactions that, in the case
1850		-	56.4of an insurer not a member of the same insurance holding company system, would be
1851		-	56.5otherwise contrary to law.
1852		-	56.6 (c) A domestic insurer may not enter into transactions which are part of a plan or series
1853		-	56.7of like transactions with persons within the insurance holding company system if the purpose
1854		-	56.8of those separate transactions is to avoid the statutory threshold amount and thus avoid the
1855		-	56.9review that would occur otherwise. If the commissioner determines that the separate
1856		-	56.10transactions were entered into over any 12-month period for the purpose, the commissioner
1857		-	56.11may exercise the authority under section 60D.25.
1858		-	56.12 (d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
1859		-	56.13whether the transactions comply with the standards set forth in paragraph (a), and whether
1860		-	56.14they may adversely affect the interests of policyholders.
1861		-	56.15 (e) The commissioner shall be notified within 30 days of any investment of the domestic
1862		-	56.16insurer in any one corporation if the total investment in the corporation by the insurance
1863		-	56.17holding company system exceeds ten percent of the corporation's voting securities.
1864		-	56.18 (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
1865		-	56.19subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
1866		-	56.20conservatorship, or receivership proceedings against the insurer and to the authority of a
1867		-	56.21supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
1868		-	56.22chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
1869		-	56.23obligations under the agreement or contract to perform services for the insurer that are: (1)
1870		-	56.24an integral part of the insurer's operations, including but not limited to management,
1871		-	56.25administrative, accounting, data processing, marketing, underwriting, claims handling,
1872		-	56.26investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
1873		-	56.27the insurer's obligations under insurance policies. The commissioner may require that an
1874		-	56.28agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
1875		-	56.29in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
1876		-	56.30under this paragraph.
	1740	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 53.1 (5) the books, accounts, and records of each party to all such transactions shall be so
	1741	+	53.2maintained as to clearly and accurately disclose the nature and details of the transactions
	1742	+	53.3including this accounting information as is necessary to support the reasonableness of the
	1743	+	53.4charges or fees to the respective parties; and
	1744	+	53.5 (6) the insurer's surplus as regards policyholders following any dividends or distributions
	1745	+	53.6to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
	1746	+	53.7and adequate to its financial needs.;
	1747	+	53.8 (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
	1748	+	53.9financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
	1749	+	53.10be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
	1750	+	53.11may require the insurer to secure and maintain either a deposit, held by the commissioner,
	1751	+	53.12or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
	1752	+	53.13the duration of the contract, agreement, or the existence of the condition for which the
	1753	+	53.14commissioner required the deposit or bond. When determining whether a deposit or bond
	1754	+	53.15is required, the commissioner must consider whether concerns exist with respect to the
	1755	+	53.16affiliated person's ability to fulfill the contract or agreement if the insurer entered into
	1756	+	53.17liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
	1757	+	53.18that would be grounds for supervision, conservation, or a delinquency proceeding, and a
	1758	+	53.19deposit or bond is necessary, the commissioner may determine the amount of the deposit
	1759	+	53.20or bond, not to exceed the value of the contract or agreement in any one year, and whether
	1760	+	53.21the deposit or bond is required for a single contract, multiple contracts, or a contract only
	1761	+	53.22with a specific person or persons;
	1762	+	53.23 (8) all of an insurer's records and data held by an affiliate are and remain the property
	1763	+	53.24of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
	1764	+	53.25readily capable of segregation, at no additional cost to the insurer, from all other persons'
	1765	+	53.26records and data. For purposes of this clause, records and data include all records and data
	1766	+	53.27that are otherwise the property of the insurer in whatever form maintained, including but
	1767	+	53.28not limited to claims and claim files, policyholder lists, application files, litigation files,
	1768	+	53.29premium records, rate books, underwriting manuals, personnel records, financial records,
	1769	+	53.30or similar records within the affiliate's possession, custody, or control. At the request of the
	1770	+	53.31insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
	1771	+	53.32of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
	1772	+	53.33on which the data are maintained, (iii) obtain the software that runs the operating systems
	1773	+	53.34either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
	1774	+	53.35the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
	1775	+	53Article 4 Sec. 21.
	1776	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 54.1must provide a waiver of any landlord lien or other encumbrance to provide the insurer
	1777	+	54.2access to all records and data in the event the affiliate defaults under a lease or other
	1778	+	54.3agreement; and
	1779	+	54.4 (9) premiums or other funds belonging to the insurer that are collected or held by an
	1780	+	54.5affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
	1781	+	54.6Any right of offset in the event an insurer is placed into receivership is subject to chapter
	1782	+	54.7576.
	1783	+	54.8 (b) The following transactions involving a domestic insurer and any person in its
	1784	+	54.9insurance holding company system, including amendments or modifications of affiliate
	1785	+	54.10agreements previously filed pursuant to this section, which are subject to any materiality
	1786	+	54.11standards contained in clauses (1) to (7), may not be entered into unless the insurer has
	1787	+	54.12notified the commissioner in writing of its intention to enter into the transaction at least 30
	1788	+	54.13days prior thereto, or a shorter period the commissioner permits, and the commissioner has
	1789	+	54.14not disapproved it within this period. The notice for amendments or modifications must
	1790	+	54.15include the reasons for the change and the financial impact on the domestic insurer. Informal
	1791	+	54.16notice must be reported, within 30 days after a termination of a previously filed agreement,
	1792	+	54.17to the commissioner for determination of the type of filing required, if any:
	1793	+	54.18 (1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
	1794	+	54.19provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
	1795	+	54.20lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
	1796	+	54.21policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
	1797	+	54.22each as of the 31st day of December next preceding;
	1798	+	54.23 (2) loans or extensions of credit to any person who is not an affiliate, where the insurer
	1799	+	54.24makes the loans or extensions of credit with the agreement or understanding that the proceeds
	1800	+	54.25of the transactions, in whole or in substantial part, are to be used to make loans or extensions
	1801	+	54.26of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
	1802	+	54.27making such loans or extensions of credit provided the transactions are equal to or exceed:
	1803	+	54.28(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
	1804	+	54.29or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
	1805	+	54.30percent of the insurer's admitted assets; each as of the 31st day of December next preceding;
	1806	+	54.31 (3) reinsurance agreements or modifications to those agreements, including: (i) all
	1807	+	54.32reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
	1808	+	54.33a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
	1809	+	54.34insurer's liabilities in any of the next three years, equals or exceeds five percent of the
	1810	+	54Article 4 Sec. 21.
	1811	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 55.1insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
	1812	+	55.2including those agreements which may require as consideration the transfer of assets from
	1813	+	55.3an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
	1814	+	55.4nonaffiliate that any portion of such the assets will be transferred to one or more affiliates
	1815	+	55.5of the insurer;
	1816	+	55.6 (4) all management agreements, service contracts, tax allocation agreements, guarantees,
	1817	+	55.7and all cost-sharing arrangements;
	1818	+	55.8 (5) guarantees when made by a domestic insurer; provided, however, that a guarantee
	1819	+	55.9which is quantifiable as to amount is not subject to the notice requirements of this paragraph
	1820	+	55.10unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
	1821	+	55.11percent of surplus as regards policyholders as of the 31st day of December next preceding.
	1822	+	55.12Further, all guarantees which are not quantifiable as to amount are subject to the notice
	1823	+	55.13requirements of this paragraph;
	1824	+	55.14 (6) direct or indirect acquisitions or investments in a person that controls the insurer or
	1825	+	55.15in an affiliate of the insurer in an amount which, together with its present holdings in the
	1826	+	55.16investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
	1827	+	55.17acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, as otherwise
	1828	+	55.18authorized under this chapter, or in nonsubsidiary insurance affiliates that are subject to the
	1829	+	55.19provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and
	1830	+	55.20 (7) any material transactions, specified by regulation, which the commissioner determines
	1831	+	55.21may adversely affect the interests of the insurer's policyholders.
	1832	+	55.22 Nothing contained in this section authorizes or permits any transactions that, in the case
	1833	+	55.23of an insurer not a member of the same insurance holding company system, would be
	1834	+	55.24otherwise contrary to law.
	1835	+	55.25 (c) A domestic insurer may not enter into transactions which are part of a plan or series
	1836	+	55.26of like transactions with persons within the insurance holding company system if the purpose
	1837	+	55.27of those separate transactions is to avoid the statutory threshold amount and thus avoid the
	1838	+	55.28review that would occur otherwise. If the commissioner determines that the separate
	1839	+	55.29transactions were entered into over any 12-month period for the purpose, the commissioner
	1840	+	55.30may exercise the authority under section 60D.25.
	1841	+	55.31 (d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
	1842	+	55.32whether the transactions comply with the standards set forth in paragraph (a), and whether
	1843	+	55.33they may adversely affect the interests of policyholders.
	1844	+	55Article 4 Sec. 21.
	1845	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 56.1 (e) The commissioner shall be notified within 30 days of any investment of the domestic
	1846	+	56.2insurer in any one corporation if the total investment in the corporation by the insurance
	1847	+	56.3holding company system exceeds ten percent of the corporation's voting securities.
	1848	+	56.4 (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
	1849	+	56.5subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
	1850	+	56.6conservatorship, or receivership proceedings against the insurer and to the authority of a
	1851	+	56.7supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
	1852	+	56.8chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
	1853	+	56.9obligations under the agreement or contract to perform services for the insurer that are: (1)
	1854	+	56.10an integral part of the insurer's operations, including but not limited to management,
	1855	+	56.11administrative, accounting, data processing, marketing, underwriting, claims handling,
	1856	+	56.12investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
	1857	+	56.13the insurer's obligations under insurance policies. The commissioner may require that an
	1858	+	56.14agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
	1859	+	56.15in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
	1860	+	56.16under this paragraph.
	1861	+	56.17Sec. 22. Minnesota Statutes 2024, section 60D.217, is amended to read:
	1862	+	56.18 60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
	1863	+	56.19INSURANCE GROUPS.
	1864	+	56.20 (a) The commissioner is authorized to act as the groupwide supervisor for any
	1865	+	56.21internationally active insurance group in accordance with the provisions of this section.
	1866	+	56.22However, the commissioner may otherwise acknowledge another regulatory official as the
	1867	+	56.23groupwide supervisor where the internationally active insurance group:
	1868	+	56.24 (1) does not have substantial insurance operations in the United States;
	1869	+	56.25 (2) has substantial insurance operations in the United States, but not in this state; or
	1870	+	56.26 (3) has substantial insurance operations in the United States and this state, but the
	1871	+	56.27commissioner has determined pursuant to the factors set forth in subsections paragraphs (b)
	1872	+	56.28and (f) that the other regulatory official is the appropriate groupwide supervisor.
	1873	+	56.29An insurance holding company system that does not otherwise qualify as an internationally
	1874	+	56.30active insurance group may request that the commissioner make a determination or
	1875	+	56.31acknowledgment as to a groupwide supervisor pursuant to this section.
	1876	+	56.32 (b) In cooperation with other state, federal, and international regulatory agencies, the
	1877	+	56.33commissioner will must identify a single groupwide supervisor for an internationally active
1877	1878		56Article 4 Sec. 22.
1878		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 57.1 Sec. 23. Minnesota Statutes 2024, section 60D.217, is amended to read:
1879		-	57.2 60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
1880		-	57.3INSURANCE GROUPS.
1881		-	57.4 (a) The commissioner is authorized to act as the groupwide supervisor for any
1882		-	57.5internationally active insurance group in accordance with the provisions of this section.
1883		-	57.6However, the commissioner may otherwise acknowledge another regulatory official as the
1884		-	57.7groupwide supervisor where the internationally active insurance group:
1885		-	57.8 (1) does not have substantial insurance operations in the United States;
1886		-	57.9 (2) has substantial insurance operations in the United States, but not in this state; or
1887		-	57.10 (3) has substantial insurance operations in the United States and this state, but the
1888		-	57.11commissioner has determined pursuant to the factors set forth in subsections paragraphs (b)
1889		-	57.12and (f) that the other regulatory official is the appropriate groupwide supervisor.
1890		-	57.13An insurance holding company system that does not otherwise qualify as an internationally
1891		-	57.14active insurance group may request that the commissioner make a determination or
1892		-	57.15acknowledgment as to a groupwide supervisor pursuant to this section.
1893		-	57.16 (b) In cooperation with other state, federal, and international regulatory agencies, the
1894		-	57.17commissioner will must identify a single groupwide supervisor for an internationally active
1895		-	57.18insurance group. The commissioner may determine that the commissioner is the appropriate
1896		-	57.19groupwide supervisor for an internationally active insurance group that conducts substantial
1897		-	57.20insurance operations concentrated in this state. However, the commissioner may acknowledge
1898		-	57.21that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
1899		-	57.22for the internationally active insurance group. The commissioner shall consider the following
1900		-	57.23factors when making a determination or acknowledgment under this subsection paragraph:
1901		-	57.24 (1) the place of domicile of the insurers within the internationally active insurance group
1902		-	57.25that hold the largest share of the group's written premiums, assets, or liabilities;
1903		-	57.26 (2) the place of domicile of the top-tiered insurer(s) insurer or insurers in the insurance
1904		-	57.27holding company system of the internationally active insurance group;
1905		-	57.28 (3) the location of the executive offices or largest operational offices of the internationally
1906		-	57.29active insurance group;
1907		-	57.30 (4) whether another regulatory official is acting or is seeking to act as the groupwide
1908		-	57.31supervisor under a regulatory system that the commissioner determines to be:
1909		-	57Article 4 Sec. 23.
1910		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 58.1 (i) substantially similar to the system of regulation provided under the laws of this state;
1911		-	58.2or
1912		-	58.3 (ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
1913		-	58.4analysis, and cooperation with other regulatory officials; and
1914		-	58.5 (5) whether another regulatory official acting or seeking to act as the groupwide
1915		-	58.6supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
1916		-	58.7However, a commissioner identified under this section as the groupwide supervisor may
1917		-	58.8determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
1918		-	58.9supervisor. The acknowledgment of the groupwide supervisor shall be made after
1919		-	58.10consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
1920		-	58.11with and subject to the acknowledgment of other regulatory officials involved with
1921		-	58.12supervision of members of the internationally active insurance group, and in consultation
1922		-	58.13with the internationally active insurance group.
1923		-	58.14 (c) Notwithstanding any other provision of law, when another regulatory official is acting
1924		-	58.15as the groupwide supervisor of an internationally active insurance group, the commissioner
1925		-	58.16shall acknowledge that regulatory official as the groupwide supervisor. However, in the
1926		-	58.17event of a material change in the internationally active insurance group that results in:
1927		-	58.18 (1) the internationally active insurance group's insurers domiciled in this state holding
1928		-	58.19the largest share of the group's premiums, assets, or liabilities; or
1929		-	58.20 (2) this state being the place of domicile of the top-tiered insurer(s) insurer or insurers
1930		-	58.21in the insurance holding company system of the internationally active insurance group,
1931		-	58.22the commissioner shall make a determination or acknowledgment as to the appropriate
1932		-	58.23groupwide supervisor for such an internationally active insurance group pursuant to
1933		-	58.24subsection paragraph (b).
1934		-	58.25 (d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
1935		-	58.26insurer registered pursuant to section 60D.19 all information necessary to determine whether
1936		-	58.27the commissioner may act as the groupwide supervisor of an internationally active insurance
1937		-	58.28group or if the commissioner may acknowledge another regulatory official to act as the
1938		-	58.29groupwide supervisor. Prior to issuing a determination that an internationally active insurance
1939		-	58.30group is subject to groupwide supervision by the commissioner, the commissioner shall
1940		-	58.31notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
1941		-	58.32within the internationally active insurance group. The internationally active insurance group
1942		-	58.33shall have not less than 30 days to provide the commissioner with additional information
1943		-	58Article 4 Sec. 23.
1944		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 59.1pertinent to the pending determination. The commissioner shall publish in the State Register
1945		-	59.2and on the department's website the identity of internationally active insurance groups that
1946		-	59.3the commissioner has determined are subject to groupwide supervision by the commissioner.
1947		-	59.4 (e) If the commissioner is the groupwide supervisor for an internationally active insurance
1948		-	59.5group, the commissioner is authorized to engage in any of the following groupwide
1949		-	59.6supervision activities:
1950		-	59.7 (1) assess the enterprise risks within the internationally active insurance group to ensure
1951		-	59.8that:
1952		-	59.9 (i) the material financial condition and liquidity risks to the members of the internationally
1953		-	59.10active insurance group that are engaged in the business of insurance are identified by
1954		-	59.11management; and
1955		-	59.12 (ii) reasonable and effective mitigation measures are in place; or
1956		-	59.13 (2) request, from any member of an internationally active insurance group subject to the
1957		-	59.14commissioner's supervision, information necessary and appropriate to assess enterprise risk,
1958		-	59.15including but not limited to information about the members of the internationally active
1959		-	59.16insurance group regarding:
1960		-	59.17 (i) governance, risk assessment, and management;
1961		-	59.18 (ii) capital adequacy; and
1962		-	59.19 (iii) material intercompany transactions;
1963		-	59.20 (3) coordinate and, through the authority of the regulatory officials of the jurisdictions
1964		-	59.21where members of the internationally active insurance group are domiciled, compel
1965		-	59.22development and implementation of reasonable measures designed to ensure that the
1966		-	59.23internationally active insurance group is able to timely recognize and mitigate enterprise
1967		-	59.24risks to members of such the internationally active insurance group that are engaged in the
1968		-	59.25business of insurance;
1969		-	59.26 (4) communicate with other state, federal and international regulatory agencies for
1970		-	59.27members within the internationally active insurance group and share relevant information
1971		-	59.28subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
1972		-	59.29set forth in section 60D.215 or otherwise;
1973		-	59.30 (5) enter into agreements with or obtain documentation from any insurer registered under
1974		-	59.31section 60D.19, any member of the internationally active insurance group, and any other
1975		-	59.32state, federal, and international regulatory agencies for members of the internationally active
1976		-	59Article 4 Sec. 23.
1977		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 60.1insurance group, providing the basis for or otherwise clarifying the commissioner's role as
1978		-	60.2groupwide supervisor, including provisions for resolving disputes with other regulatory
1979		-	60.3officials. Such Agreements or documentation under this clause shall not serve as evidence
1980		-	60.4in any proceeding that any insurer or person within an insurance holding company system
1981		-	60.5not domiciled or incorporated in this state is doing business in this state or is otherwise
1982		-	60.6subject to jurisdiction in this state; and
1983		-	60.7 (6) other groupwide supervision activities, consistent with the authorities and purposes
1984		-	60.8enumerated above, as considered necessary by the commissioner.
1985		-	60.9 (f) If the commissioner acknowledges that another regulatory official from a jurisdiction
1986		-	60.10that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
1987		-	60.11authorized to reasonably cooperate, through supervisory colleges or otherwise, with
1988		-	60.12groupwide supervision undertaken by the groupwide supervisor, provided that:
1989		-	60.13 (1) the commissioner's cooperation is in compliance with the laws of this state; and
1990		-	60.14 (2) the regulatory official acknowledged as the groupwide supervisor also recognizes
1991		-	60.15and cooperates with the commissioner's activities as a groupwide supervisor for other
1992		-	60.16internationally active insurance groups where applicable. Where such recognition and
1993		-	60.17cooperation by the groupwide supervisor is not reasonably reciprocal, the commissioner is
1994		-	60.18authorized to refuse recognition and cooperation.
1995		-	60.19 (g) The commissioner is authorized to enter into agreements with or obtain documentation
1996		-	60.20from any insurer registered under section 60D.19, any affiliate of the insurer, and other
1997		-	60.21state, federal, and international regulatory agencies for members of the internationally active
1998		-	60.22insurance group, that provide the basis for or otherwise clarify a regulatory official's role
1999		-	60.23as groupwide supervisor.
2000		-	60.24 (h) A registered insurer subject to this section shall be liable for and shall pay the
2001		-	60.25reasonable expenses of the commissioner's participation in the administration of this section,
2002		-	60.26including the engagement of attorneys, actuaries, and any other professionals and all
2003		-	60.27reasonable travel expenses.
2004		-	60.28Sec. 24. Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:
2005		-	60.29 Subdivision 1.Classification protection and use of information by commissioner.(a)
2006		-	60.30Documents, materials, or other information in the possession or control of the department
2007		-	60.31that are obtained by or disclosed to the commissioner or any other person in the course of
2008		-	60.32an examination or investigation made pursuant to section 60D.21 and all information reported
2009		-	60.33pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
2010		-	60Article 4 Sec. 24.
2011		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 61.1(e); 60D.18; 60D.19; and 60D.20,; and 60D.217, are classified as confidential or protected
2012		-	61.2nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
2013		-	61.3in evidence in a private civil action. However, the commissioner may use the documents,
2014		-	61.4materials, or other information in the furtherance of any regulatory or legal action brought
2015		-	61.5as a part of the commissioner's official duties. The commissioner shall not otherwise make
2016		-	61.6the documents, materials, or other information public without the prior written consent of
2017		-	61.7the insurer to which it pertains unless the commissioner, after giving the insurer and its
2018		-	61.8affiliates who would be affected by this action notice and opportunity to be heard, determines
2019		-	61.9that the interest of policyholders, shareholders, or the public will be is served by the
2020		-	61.10publication of it, in which event the commissioner may publish all or any part in the manner
2021		-	61.11the commissioner deems appropriate.
2022		-	61.12 (b) For purposes of the information reported and provided to the department pursuant
2023		-	61.13to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
2024		-	61.14the group capital calculation and group capital ratio produced within the calculation and
2025		-	61.15any group capital information received from an insurance holding company supervised by
2026		-	61.16the Federal Reserve Board or any United States groupwide supervisor.
2027		-	61.17 (c) For purposes of the information reported and provided to the department pursuant
2028		-	61.18to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
2029		-	61.19the liquidity stress test results and supporting disclosures and any liquidity stress test
2030		-	61.20information received from an insurance holding company supervised by the Federal Reserve
2031		-	61.21Board and non-United States groupwide supervisors.
2032		-	61.22Sec. 25. Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:
2033		-	61.23 Subd. 3.Sharing of information.In order to assist in the performance of the
2034		-	61.24commissioner's duties, the commissioner:
2035		-	61.25 (1) may share documents, materials, or other information, including the confidential,
2036		-	61.26protected nonpublic, and privileged documents, materials, or information subject to this
2037		-	61.27section, including proprietary and trade secret documents and materials, with: (i) other state,
2038		-	61.28federal, and international regulatory agencies, with; (ii) the NAIC and its affiliates and
2039		-	61.29subsidiaries,; (iii) any third-party consultants designated by the commissioner; and with
2040		-	61.30(iv) state, federal, and international law enforcement authorities, including members of any
2041		-	61.31supervisory college described in section 60D.215, provided that the recipient agrees in
2042		-	61.32writing to maintain the confidentiality and privileged status of the document, material, or
2043		-	61.33other information, and has verified in writing the legal authority to maintain confidentiality;
2044		-	61Article 4 Sec. 25.
2045		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 62.1 (2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
2046		-	62.2privileged documents, materials, or information reported pursuant to section 60D.19,
2047		-	62.3subdivision 11a, with commissioners of states having statutes or regulations substantially
2048		-	62.4similar to subdivision 1 and who have agreed in writing not to disclose this information;
2049		-	62.5 (3) may receive documents, materials, or information, including otherwise confidential
2050		-	62.6and privileged documents, materials, or information from the NAIC and its the NAIC's
2051		-	62.7affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
2052		-	62.8or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
2053		-	62.9privileged any document, material, or information received with notice or the understanding
2054		-	62.10that it is confidential or privileged under the laws of the jurisdiction that is the source of the
2055		-	62.11document, material, or information; and
2056		-	62.12 (4) shall enter into written agreements with the NAIC and a third-party consultant
2057		-	62.13designated by the commissioner governing sharing and use of information provided pursuant
2058		-	62.14to sections 60D.15 to 60D.29 consistent with this clause that shall:
2059		-	62.15 (i) specify procedures and protocols regarding the confidentiality and security of
2060		-	62.16information shared with the NAIC and its affiliates and subsidiaries or a third-party consultant
2061		-	62.17designated by the commissioner pursuant to sections 60D.15 to 60D.29, including procedures
2062		-	62.18and protocols for sharing by the NAIC with other state, federal, or international regulators.
2063		-	62.19The agreement must provide that the recipient agrees in writing to maintain the confidentiality
2064		-	62.20and privileged status of the documents, materials, or other information, and has verified in
2065		-	62.21writing the legal authority to maintain confidentiality;
2066		-	62.22 (ii) specify that ownership of information shared with the NAIC and its affiliates and
2067		-	62.23subsidiaries or a third-party consultant pursuant to sections 60D.15 to 60D.29 remains with
2068		-	62.24the commissioner and the NAIC's or a third-party consultant's, as designated by the
2069		-	62.25commissioner, use of the information is subject to the direction of the commissioner;
2070		-	62.26 (iii) excluding documents, material, or information reported pursuant to section 60D.19,
2071		-	62.27subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
2072		-	62.28commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
2073		-	62.29in a permanent database after the underlying analysis is completed;
2074		-	62.30 (iii) (iv) require prompt notice to be given to an insurer whose confidential or protected
2075		-	62.31nonpublic information in the possession of the NAIC or a third-party consultant designated
2076		-	62.32by the commissioner pursuant to sections 60D.15 to 60D.29 is subject to a request or
2077		-	62.33subpoena to the NAIC or a third-party consultant designated by the commissioner for
2078		-	62.34disclosure or production; and
	1879	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 57.1insurance group. The commissioner may determine that the commissioner is the appropriate
	1880	+	57.2groupwide supervisor for an internationally active insurance group that conducts substantial
	1881	+	57.3insurance operations concentrated in this state. However, the commissioner may acknowledge
	1882	+	57.4that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
	1883	+	57.5for the internationally active insurance group. The commissioner shall consider the following
	1884	+	57.6factors when making a determination or acknowledgment under this subsection paragraph:
	1885	+	57.7 (1) the place of domicile of the insurers within the internationally active insurance group
	1886	+	57.8that hold the largest share of the group's written premiums, assets, or liabilities;
	1887	+	57.9 (2) the place of domicile of the top-tiered insurer(s) insurer or insurers in the insurance
	1888	+	57.10holding company system of the internationally active insurance group;
	1889	+	57.11 (3) the location of the executive offices or largest operational offices of the internationally
	1890	+	57.12active insurance group;
	1891	+	57.13 (4) whether another regulatory official is acting or is seeking to act as the groupwide
	1892	+	57.14supervisor under a regulatory system that the commissioner determines to be:
	1893	+	57.15 (i) substantially similar to the system of regulation provided under the laws of this state;
	1894	+	57.16or
	1895	+	57.17 (ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
	1896	+	57.18analysis, and cooperation with other regulatory officials; and
	1897	+	57.19 (5) whether another regulatory official acting or seeking to act as the groupwide
	1898	+	57.20supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
	1899	+	57.21However, a commissioner identified under this section as the groupwide supervisor may
	1900	+	57.22determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
	1901	+	57.23supervisor. The acknowledgment of the groupwide supervisor shall be made after
	1902	+	57.24consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
	1903	+	57.25with and subject to the acknowledgment of other regulatory officials involved with
	1904	+	57.26supervision of members of the internationally active insurance group, and in consultation
	1905	+	57.27with the internationally active insurance group.
	1906	+	57.28 (c) Notwithstanding any other provision of law, when another regulatory official is acting
	1907	+	57.29as the groupwide supervisor of an internationally active insurance group, the commissioner
	1908	+	57.30shall acknowledge that regulatory official as the groupwide supervisor. However, in the
	1909	+	57.31event of a material change in the internationally active insurance group that results in:
	1910	+	57.32 (1) the internationally active insurance group's insurers domiciled in this state holding
	1911	+	57.33the largest share of the group's premiums, assets, or liabilities; or
	1912	+	57Article 4 Sec. 22.
	1913	+	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
	1914	+	58.2in the insurance holding company system of the internationally active insurance group,
	1915	+	58.3the commissioner shall make a determination or acknowledgment as to the appropriate
	1916	+	58.4groupwide supervisor for such an internationally active insurance group pursuant to
	1917	+	58.5subsection paragraph (b).
	1918	+	58.6 (d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
	1919	+	58.7insurer registered pursuant to section 60D.19 all information necessary to determine whether
	1920	+	58.8the commissioner may act as the groupwide supervisor of an internationally active insurance
	1921	+	58.9group or if the commissioner may acknowledge another regulatory official to act as the
	1922	+	58.10groupwide supervisor. Prior to issuing a determination that an internationally active insurance
	1923	+	58.11group is subject to groupwide supervision by the commissioner, the commissioner shall
	1924	+	58.12notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
	1925	+	58.13within the internationally active insurance group. The internationally active insurance group
	1926	+	58.14shall have not less than 30 days to provide the commissioner with additional information
	1927	+	58.15pertinent to the pending determination. The commissioner shall publish in the State Register
	1928	+	58.16and on the department's website the identity of internationally active insurance groups that
	1929	+	58.17the commissioner has determined are subject to groupwide supervision by the commissioner.
	1930	+	58.18 (e) If the commissioner is the groupwide supervisor for an internationally active insurance
	1931	+	58.19group, the commissioner is authorized to engage in any of the following groupwide
	1932	+	58.20supervision activities:
	1933	+	58.21 (1) assess the enterprise risks within the internationally active insurance group to ensure
	1934	+	58.22that:
	1935	+	58.23 (i) the material financial condition and liquidity risks to the members of the internationally
	1936	+	58.24active insurance group that are engaged in the business of insurance are identified by
	1937	+	58.25management; and
	1938	+	58.26 (ii) reasonable and effective mitigation measures are in place; or
	1939	+	58.27 (2) request, from any member of an internationally active insurance group subject to the
	1940	+	58.28commissioner's supervision, information necessary and appropriate to assess enterprise risk,
	1941	+	58.29including but not limited to information about the members of the internationally active
	1942	+	58.30insurance group regarding:
	1943	+	58.31 (i) governance, risk assessment, and management;
	1944	+	58.32 (ii) capital adequacy; and
	1945	+	58.33 (iii) material intercompany transactions;
	1946	+	58Article 4 Sec. 22.
	1947	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 59.1 (3) coordinate and, through the authority of the regulatory officials of the jurisdictions
	1948	+	59.2where members of the internationally active insurance group are domiciled, compel
	1949	+	59.3development and implementation of reasonable measures designed to ensure that the
	1950	+	59.4internationally active insurance group is able to timely recognize and mitigate enterprise
	1951	+	59.5risks to members of such the internationally active insurance group that are engaged in the
	1952	+	59.6business of insurance;
	1953	+	59.7 (4) communicate with other state, federal and international regulatory agencies for
	1954	+	59.8members within the internationally active insurance group and share relevant information
	1955	+	59.9subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
	1956	+	59.10set forth in section 60D.215 or otherwise;
	1957	+	59.11 (5) enter into agreements with or obtain documentation from any insurer registered under
	1958	+	59.12section 60D.19, any member of the internationally active insurance group, and any other
	1959	+	59.13state, federal, and international regulatory agencies for members of the internationally active
	1960	+	59.14insurance group, providing the basis for or otherwise clarifying the commissioner's role as
	1961	+	59.15groupwide supervisor, including provisions for resolving disputes with other regulatory
	1962	+	59.16officials. Such Agreements or documentation under this clause shall not serve as evidence
	1963	+	59.17in any proceeding that any insurer or person within an insurance holding company system
	1964	+	59.18not domiciled or incorporated in this state is doing business in this state or is otherwise
	1965	+	59.19subject to jurisdiction in this state; and
	1966	+	59.20 (6) other groupwide supervision activities, consistent with the authorities and purposes
	1967	+	59.21enumerated above, as considered necessary by the commissioner.
	1968	+	59.22 (f) If the commissioner acknowledges that another regulatory official from a jurisdiction
	1969	+	59.23that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
	1970	+	59.24authorized to reasonably cooperate, through supervisory colleges or otherwise, with
	1971	+	59.25groupwide supervision undertaken by the groupwide supervisor, provided that:
	1972	+	59.26 (1) the commissioner's cooperation is in compliance with the laws of this state; and
	1973	+	59.27 (2) the regulatory official acknowledged as the groupwide supervisor also recognizes
	1974	+	59.28and cooperates with the commissioner's activities as a groupwide supervisor for other
	1975	+	59.29internationally active insurance groups where applicable. Where such recognition and
	1976	+	59.30cooperation by the groupwide supervisor is not reasonably reciprocal, the commissioner is
	1977	+	59.31authorized to refuse recognition and cooperation.
	1978	+	59.32 (g) The commissioner is authorized to enter into agreements with or obtain documentation
	1979	+	59.33from any insurer registered under section 60D.19, any affiliate of the insurer, and other
	1980	+	59.34state, federal, and international regulatory agencies for members of the internationally active
	1981	+	59Article 4 Sec. 22.
	1982	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 60.1insurance group, that provide the basis for or otherwise clarify a regulatory official's role
	1983	+	60.2as groupwide supervisor.
	1984	+	60.3 (h) A registered insurer subject to this section shall be liable for and shall pay the
	1985	+	60.4reasonable expenses of the commissioner's participation in the administration of this section,
	1986	+	60.5including the engagement of attorneys, actuaries, and any other professionals and all
	1987	+	60.6reasonable travel expenses.
	1988	+	60.7 Sec. 23. Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:
	1989	+	60.8 Subdivision 1.Classification protection and use of information by commissioner.(a)
	1990	+	60.9Documents, materials, or other information in the possession or control of the department
	1991	+	60.10that are obtained by or disclosed to the commissioner or any other person in the course of
	1992	+	60.11an examination or investigation made pursuant to section 60D.21 and all information reported
	1993	+	60.12pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
	1994	+	60.13(e); 60D.18; 60D.19; and 60D.20,; and 60D.217, are classified as confidential or protected
	1995	+	60.14nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
	1996	+	60.15in evidence in a private civil action. However, the commissioner may use the documents,
	1997	+	60.16materials, or other information in the furtherance of any regulatory or legal action brought
	1998	+	60.17as a part of the commissioner's official duties. The commissioner shall not otherwise make
	1999	+	60.18the documents, materials, or other information public without the prior written consent of
	2000	+	60.19the insurer to which it pertains unless the commissioner, after giving the insurer and its
	2001	+	60.20affiliates who would be affected by this action notice and opportunity to be heard, determines
	2002	+	60.21that the interest of policyholders, shareholders, or the public will be is served by the
	2003	+	60.22publication of it, in which event the commissioner may publish all or any part in the manner
	2004	+	60.23the commissioner deems appropriate.
	2005	+	60.24 (b) For purposes of the information reported and provided to the department pursuant
	2006	+	60.25to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
	2007	+	60.26the group capital calculation and group capital ratio produced within the calculation and
	2008	+	60.27any group capital information received from an insurance holding company supervised by
	2009	+	60.28the Federal Reserve Board or any United States groupwide supervisor.
	2010	+	60.29 (c) For purposes of the information reported and provided to the department pursuant
	2011	+	60.30to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
	2012	+	60.31the liquidity stress test results and supporting disclosures and any liquidity stress test
	2013	+	60.32information received from an insurance holding company supervised by the Federal Reserve
	2014	+	60.33Board and non-United States groupwide supervisors.
	2015	+	60Article 4 Sec. 23.
	2016	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 61.1 Sec. 24. Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:
	2017	+	61.2 Subd. 3.Sharing of information.In order to assist in the performance of the
	2018	+	61.3commissioner's duties, the commissioner:
	2019	+	61.4 (1) may share documents, materials, or other information, including the confidential,
	2020	+	61.5protected nonpublic, and privileged documents, materials, or information subject to this
	2021	+	61.6section, including proprietary and trade secret documents and materials, with: (i) other state,
	2022	+	61.7federal, and international regulatory agencies, with; (ii) the NAIC and its affiliates and
	2023	+	61.8subsidiaries,; (iii) any third-party consultants designated by the commissioner; and with
	2024	+	61.9(iv) state, federal, and international law enforcement authorities, including members of any
	2025	+	61.10supervisory college described in section 60D.215, provided that the recipient agrees in
	2026	+	61.11writing to maintain the confidentiality and privileged status of the document, material, or
	2027	+	61.12other information, and has verified in writing the legal authority to maintain confidentiality;
	2028	+	61.13 (2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
	2029	+	61.14privileged documents, materials, or information reported pursuant to section 60D.19,
	2030	+	61.15subdivision 11a, with commissioners of states having statutes or regulations substantially
	2031	+	61.16similar to subdivision 1 and who have agreed in writing not to disclose this information;
	2032	+	61.17 (3) may receive documents, materials, or information, including otherwise confidential
	2033	+	61.18and privileged documents, materials, or information from the NAIC and its the NAIC's
	2034	+	61.19affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
	2035	+	61.20or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
	2036	+	61.21privileged any document, material, or information received with notice or the understanding
	2037	+	61.22that it is confidential or privileged under the laws of the jurisdiction that is the source of the
	2038	+	61.23document, material, or information; and
	2039	+	61.24 (4) shall enter into written agreements with the NAIC and a third-party consultant
	2040	+	61.25designated by the commissioner governing sharing and use of information provided pursuant
	2041	+	61.26to sections 60D.15 to 60D.29 consistent with this clause that shall:
	2042	+	61.27 (i) specify procedures and protocols regarding the confidentiality and security of
	2043	+	61.28information shared with the NAIC and its affiliates and subsidiaries or a third-party consultant
	2044	+	61.29designated by the commissioner pursuant to sections 60D.15 to 60D.29, including procedures
	2045	+	61.30and protocols for sharing by the NAIC with other state, federal, or international regulators.
	2046	+	61.31The agreement must provide that the recipient agrees in writing to maintain the confidentiality
	2047	+	61.32and privileged status of the documents, materials, or other information, and has verified in
	2048	+	61.33writing the legal authority to maintain confidentiality;
	2049	+	61Article 4 Sec. 24.
	2050	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 62.1 (ii) specify that ownership of information shared with the NAIC and its affiliates and
	2051	+	62.2subsidiaries or a third-party consultant pursuant to sections 60D.15 to 60D.29 remains with
	2052	+	62.3the commissioner and the NAIC's or a third-party consultant's, as designated by the
	2053	+	62.4commissioner, use of the information is subject to the direction of the commissioner;
	2054	+	62.5 (iii) excluding documents, material, or information reported pursuant to section 60D.19,
	2055	+	62.6subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
	2056	+	62.7commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
	2057	+	62.8in a permanent database after the underlying analysis is completed;
	2058	+	62.9 (iii) (iv) require prompt notice to be given to an insurer whose confidential or protected
	2059	+	62.10nonpublic information in the possession of the NAIC or a third-party consultant designated
	2060	+	62.11by the commissioner pursuant to sections 60D.15 to 60D.29 is subject to a request or
	2061	+	62.12subpoena to the NAIC or a third-party consultant designated by the commissioner for
	2062	+	62.13disclosure or production; and
	2063	+	62.14 (iv) (v) require the NAIC and its affiliates and subsidiaries or a third-party consultant
	2064	+	62.15designated by the commissioner to consent to intervention by an insurer in any judicial or
	2065	+	62.16administrative action in which the NAIC and its affiliates and subsidiaries or a third-party
	2066	+	62.17consultant designated by the commissioner may be required to disclose confidential or
	2067	+	62.18protected nonpublic information about the insurer shared with the NAIC and its affiliates
	2068	+	62.19and subsidiaries or a third-party consultant designated by the commissioner pursuant to
	2069	+	62.20sections 60D.15 to 60D.29.; and
	2070	+	62.21 (vi) for documents, material, or information reported pursuant to section 60D.19,
	2071	+	62.22subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
	2072	+	62.23notification of the identity of the consultant to the applicable insurers.
	2073	+	62.24Sec. 25. Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:
	2074	+	62.25 Subd. 6.Classification protection and use by others.Documents, materials, or other
	2075	+	62.26information in the possession or control of the NAIC or a third-party consultant designated
	2076	+	62.27by the commissioner pursuant to sections 60D.15 to 60D.29 are confidential, protected
	2077	+	62.28nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
	2078	+	62.29admissible in evidence in a private civil action.
2079	2079		62Article 4 Sec. 25.
2080		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 63.1 (iv) (v) require the NAIC and its affiliates and subsidiaries or a third-party consultant
2081		-	63.2designated by the commissioner to consent to intervention by an insurer in any judicial or
2082		-	63.3administrative action in which the NAIC and its affiliates and subsidiaries or a third-party
2083		-	63.4consultant designated by the commissioner may be required to disclose confidential or
2084		-	63.5protected nonpublic information about the insurer shared with the NAIC and its affiliates
2085		-	63.6and subsidiaries or a third-party consultant designated by the commissioner pursuant to
2086		-	63.7sections 60D.15 to 60D.29.; and
2087		-	63.8 (vi) for documents, material, or information reported pursuant to section 60D.19,
2088		-	63.9subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
2089		-	63.10notification of the identity of the consultant to the applicable insurers.
2090		-	63.11Sec. 26. Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:
2091		-	63.12 Subd. 6.Classification protection and use by others.Documents, materials, or other
2092		-	63.13information in the possession or control of the NAIC or a third-party consultant designated
2093		-	63.14by the commissioner pursuant to sections 60D.15 to 60D.29 are confidential, protected
2094		-	63.15nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
2095		-	63.16admissible in evidence in a private civil action.
2096		-	63.17Sec. 27. Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
2097		-	63.18read:
2098		-	63.19 Subd. 7.Certain disclosures or publication prohibited.(a) The group capital calculation
2099		-	63.20and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
2100		-	63.21liquidity stress test along with the liquidity stress test's results and supporting disclosures
2101		-	63.22required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
2102		-	63.23and capital adequacy and group liquidity risks, respectively, and are not intended as a means
2103		-	63.24to rank insurers or insurance holding company systems generally.
2104		-	63.25 (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
2105		-	63.26disseminating, circulating, or placing before the public, or causing directly or indirectly to
2106		-	63.27be made, published, disseminated, circulated, or placed before the public in a newspaper,
2107		-	63.28magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
2108		-	63.29or over any radio, television station, or any electronic means of communication available
2109		-	63.30to the public, or in any other way as an advertisement, announcement, or statement containing
2110		-	63.31a representation or statement with regard to the group capital calculation, group capital ratio,
2111		-	63.32the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
2112		-	63.33insurer or any insurer group, or of any component derived in the calculation by any insurer,
	2080	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 63.1 Sec. 26. Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
	2081	+	63.2read:
	2082	+	63.3 Subd. 7.Certain disclosures or publication prohibited.(a) The group capital calculation
	2083	+	63.4and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
	2084	+	63.5liquidity stress test along with the liquidity stress test's results and supporting disclosures
	2085	+	63.6required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
	2086	+	63.7and capital adequacy and group liquidity risks, respectively, and are not intended as a means
	2087	+	63.8to rank insurers or insurance holding company systems generally.
	2088	+	63.9 (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
	2089	+	63.10disseminating, circulating, or placing before the public, or causing directly or indirectly to
	2090	+	63.11be made, published, disseminated, circulated, or placed before the public in a newspaper,
	2091	+	63.12magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
	2092	+	63.13or over any radio, television station, or any electronic means of communication available
	2093	+	63.14to the public, or in any other way as an advertisement, announcement, or statement containing
	2094	+	63.15a representation or statement with regard to the group capital calculation, group capital ratio,
	2095	+	63.16the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
	2096	+	63.17insurer or any insurer group, or of any component derived in the calculation by any insurer,
	2097	+	63.18broker, or other person engaged in any manner in the insurance business is misleading and
	2098	+	63.19is prohibited.
	2099	+	63.20 (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
	2100	+	63.21publication if any materially false statement with respect to the group capital calculation,
	2101	+	63.22resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
	2102	+	63.23insurance group's group capital calculation or resulting group capital ratio, liquidity stress
	2103	+	63.24test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
	2104	+	63.25of any amount to an insurer's or insurance group's liquidity stress test result or supporting
	2105	+	63.26disclosures is published in any written publication and the insurer is able to demonstrate to
	2106	+	63.27the commissioner with substantial proof the statement's falsity or inappropriateness. The
	2107	+	63.28sole purpose of an announcement under this paragraph must be to rebut the materially false
	2108	+	63.29statement.
	2109	+	63.30Sec. 27. Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:
	2110	+	63.31 Subd. 2.Voting of securities; when prohibited.No security that is the subject of any
	2111	+	63.32agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
	2112	+	63.33contravention of the provisions of this chapter or of any rule or order issued by the
	2113	+	63.34commissioner may be voted at any shareholder's meeting, or may be counted for quorum
2113	2114		63Article 4 Sec. 27.
2114		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 64.1broker, or other person engaged in any manner in the insurance business is misleading and
2115		-	64.2is prohibited.
2116		-	64.3 (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
2117		-	64.4publication if any materially false statement with respect to the group capital calculation,
2118		-	64.5resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
2119		-	64.6insurance group's group capital calculation or resulting group capital ratio, liquidity stress
2120		-	64.7test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
2121		-	64.8of any amount to an insurer's or insurance group's liquidity stress test result or supporting
2122		-	64.9disclosures is published in any written publication and the insurer is able to demonstrate to
2123		-	64.10the commissioner with substantial proof the statement's falsity or inappropriateness. The
2124		-	64.11sole purpose of an announcement under this paragraph must be to rebut the materially false
2125		-	64.12statement.
2126		-	64.13Sec. 28. Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:
2127		-	64.14 Subd. 2.Voting of securities; when prohibited.No security that is the subject of any
2128		-	64.15agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
2129		-	64.16contravention of the provisions of this chapter or of any rule or order issued by the
2130		-	64.17commissioner may be voted at any shareholder's meeting, or may be counted for quorum
2131		-	64.18purposes, and any action of shareholders requiring the affirmative vote of a percentage of
2132		-	64.19shares may be taken as though the securities were not issued and outstanding. No action
2133		-	64.20taken at the meeting shall be invalidated by the voting of the securities, unless the action
2134		-	64.21would materially affect control of the insurer or unless the courts of this state have so
2135		-	64.22ordered. If an insurer or the commissioner has reason to believe that any security of the
2136		-	64.23insurer has been or is about to be acquired in contravention of the provisions of this chapter
2137		-	64.24or of any rule or order issued by the commissioner, the insurer or the commissioner may
2138		-	64.25apply to the district court for the county in which the insurer has its principal place of
2139		-	64.26business to enjoin any offer, request, invitation, agreement, or acquisition made in
2140		-	64.27contravention of section 60D.16 60D.17 or any rule or order issued by the commissioner
2141		-	64.28to enjoin the voting of any security so acquired, to void any vote of the security already cast
2142		-	64.29at any meeting of shareholders and for other equitable relief as the nature of the case and
2143		-	64.30the interest of the insurer's policyholders or the public requires.
2144		-	64Article 4 Sec. 28.
2145		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 65.1 Sec. 29. Minnesota Statutes 2024, section 60D.25, is amended to read:
2146		-	65.2 60D.25 RECEIVERSHIP.
2147		-	65.3 Whenever it appears to the commissioner that any person has committed a violation of
2148		-	65.4this chapter that so impairs the financial condition of a domestic insurer as to threaten
2149		-	65.5insolvency or make the further transaction of business by it hazardous to its policyholders,
2150		-	65.6creditors, shareholders, or the public, then the commissioner may proceed as provided in
2151		-	65.7chapter 60B to take possessions of the property of the domestic insurer and to conduct the
2152		-	65.8business of that the domestic insurer.
2153		-	65.9 Sec. 30. Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
2154		-	65.10to read:
2155		-	65.11 Subd. 3.Exception.Notwithstanding subdivision 1, health maintenance organizations
2156		-	65.12are not subject to oversight under this section with respect to section 60D.20, subdivision
2157		-	65.131, paragraphs (a), clauses (7) to (9), and (f).
2158		-	65.14Sec. 31. Minnesota Statutes 2024, section 65A.01, subdivision 3c, is amended to read:
2159		-	65.15 Subd. 3c.Time requirements.(a) In the event of a policy less than 60 days old that is
2160		-	65.16declined, or a policy that it is being canceled for nonpayment of premium, the notice must
2161		-	65.17be mailed to the insured at least 20 30 days before the effective cancellation date. If a policy
2162		-	65.18is being declined or canceled for underwriting considerations, the insured must be informed
2163		-	65.19of the source from which the information was received.
2164		-	65.20 (b) In the event of a midterm cancellation, for reasons listed in subdivision 3a, or
2165		-	65.21according to policy provisions, notice must be mailed to the insured at least 30 days before
2166		-	65.22the effective cancellation date.
2167		-	65.23 (c) In the event of a nonrenewal, notice must be mailed to the insured at least 60 days
2168		-	65.24before the effective date of nonrenewal, containing the specific underwriting or other reason
2169		-	65.25for the indicated actions.
2170		-	65.26 (d) This subdivision does not apply to commercial policies regulated under sections
2171		-	65.2760A.36 and 60A.37.
2172		-	65.28Sec. 32. Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
2173		-	65.29read:
2174		-	65.30 Subd. 42.Availability of current policy.After an original policy of automobile insurance
2175		-	65.31under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
	2115	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 64.1purposes, and any action of shareholders requiring the affirmative vote of a percentage of
	2116	+	64.2shares may be taken as though the securities were not issued and outstanding. No action
	2117	+	64.3taken at the meeting shall be invalidated by the voting of the securities, unless the action
	2118	+	64.4would materially affect control of the insurer or unless the courts of this state have so
	2119	+	64.5ordered. If an insurer or the commissioner has reason to believe that any security of the
	2120	+	64.6insurer has been or is about to be acquired in contravention of the provisions of this chapter
	2121	+	64.7or of any rule or order issued by the commissioner, the insurer or the commissioner may
	2122	+	64.8apply to the district court for the county in which the insurer has its principal place of
	2123	+	64.9business to enjoin any offer, request, invitation, agreement, or acquisition made in
	2124	+	64.10contravention of section 60D.16 60D.17 or any rule or order issued by the commissioner
	2125	+	64.11to enjoin the voting of any security so acquired, to void any vote of the security already cast
	2126	+	64.12at any meeting of shareholders and for other equitable relief as the nature of the case and
	2127	+	64.13the interest of the insurer's policyholders or the public requires.
	2128	+	64.14Sec. 28. Minnesota Statutes 2024, section 60D.25, is amended to read:
	2129	+	64.15 60D.25 RECEIVERSHIP.
	2130	+	64.16 Whenever it appears to the commissioner that any person has committed a violation of
	2131	+	64.17this chapter that so impairs the financial condition of a domestic insurer as to threaten
	2132	+	64.18insolvency or make the further transaction of business by it hazardous to its policyholders,
	2133	+	64.19creditors, shareholders, or the public, then the commissioner may proceed as provided in
	2134	+	64.20chapter 60B to take possessions of the property of the domestic insurer and to conduct the
	2135	+	64.21business of that the domestic insurer.
	2136	+	64.22Sec. 29. Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
	2137	+	64.23to read:
	2138	+	64.24 Subd. 3.Exception.Notwithstanding subdivision 1, health maintenance organizations
	2139	+	64.25are not subject to oversight under this section with respect to section 60D.20, subdivision
	2140	+	64.261, paragraphs (a), clauses (7) to (9), and (f).
	2141	+	64.27Sec. 30. Minnesota Statutes 2024, section 65A.01, subdivision 3c, is amended to read:
	2142	+	64.28 Subd. 3c.Time requirements.(a) In the event of a policy less than 60 days old that is
	2143	+	64.29declined, or a policy that it is being canceled for nonpayment of premium, the notice must
	2144	+	64.30be mailed to the insured at least 20 30 days before the effective cancellation date. If a policy
	2145	+	64.31is being declined or canceled for underwriting considerations, the insured must be informed
	2146	+	64.32of the source from which the information was received.
	2147	+	64Article 4 Sec. 30.
	2148	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 65.1 (b) In the event of a midterm cancellation, for reasons listed in subdivision 3a, or
	2149	+	65.2according to policy provisions, notice must be mailed to the insured at least 30 days before
	2150	+	65.3the effective cancellation date.
	2151	+	65.4 (c) In the event of a nonrenewal, notice must be mailed to the insured at least 60 days
	2152	+	65.5before the effective date of nonrenewal, containing the specific underwriting or other reason
	2153	+	65.6for the indicated actions.
	2154	+	65.7 (d) This subdivision does not apply to commercial policies regulated under sections
	2155	+	65.860A.36 and 60A.37.
	2156	+	65.9 Sec. 31. Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
	2157	+	65.10read:
	2158	+	65.11 Subd. 42.Availability of current policy.After an original policy of automobile insurance
	2159	+	65.12under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
	2160	+	65.13subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
	2161	+	65.14first named insured within 21 days of the date a request for the current policy is received.
	2162	+	65.15The copy may be delivered in paper form, electronically, or via a website link. An insurer
	2163	+	65.16is required to provide a current policy in response to a request under this subdivision once
	2164	+	65.17per policy period.
	2165	+	65.18Sec. 32. [168A.1502] INSURER APPLICATION FOR TITLE.
	2166	+	65.19 (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
	2167	+	65.20vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
	2168	+	65.21insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
	2169	+	65.22to the commissioner for a certificate of title as provided in this section. This section only
	2170	+	65.23applies to vehicles with a title issued by this state.
	2171	+	65.24 (b) At least 15 days prior to applying for a certificate of title under this section, the
	2172	+	65.25insurer or a designated agent must notify the owner and any lienholders of record of the
	2173	+	65.26insurer's intent to apply for a title. The notice must be sent to the last known address of the
	2174	+	65.27owner and any lienholders by certified mail or by a commercial delivery service that provides
	2175	+	65.28evidence of delivery.
	2176	+	65.29 (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
	2177	+	65.30the insurer may apply for a certificate of title from the commissioner. The application must
	2178	+	65.31attest that the insurer or a designated agent:
	2179	+	65.32 (1) paid the claim;
2176	2180		65Article 4 Sec. 32.
2177		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 66.1subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
2178		-	66.2first named insured within 21 days of the date a request for the current policy is received.
2179		-	66.3The copy may be delivered in paper form, electronically, or via a website link. An insurer
2180		-	66.4is required to provide a current policy in response to a request under this subdivision once
2181		-	66.5per policy period.
2182		-	66.6 Sec. 33. [168A.1502] INSURER APPLICATION FOR TITLE.
2183		-	66.7 (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
2184		-	66.8vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
2185		-	66.9insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
2186		-	66.10to the commissioner for a certificate of title as provided in this section. This section only
2187		-	66.11applies to vehicles with a title issued by this state.
2188		-	66.12 (b) At least 15 days prior to applying for a certificate of title under this section, the
2189		-	66.13insurer or a designated agent must notify the owner and any lienholders of record of the
2190		-	66.14insurer's intent to apply for a title. The notice must be sent to the last known address of the
2191		-	66.15owner and any lienholders by certified mail or by a commercial delivery service that provides
2192		-	66.16evidence of delivery.
2193		-	66.17 (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
2194		-	66.18the insurer may apply for a certificate of title from the commissioner. The application must
2195		-	66.19attest that the insurer or a designated agent:
2196		-	66.20 (1) paid the claim;
2197		-	66.21 (2) requested the title or other necessary transfer documents from the owner; and
2198		-	66.22 (3) provided notice to the owner and any lienholders as required under paragraph (b).
2199		-	66.23If the insurer or a designated agent does not attest to completing the requirements under
2200		-	66.24clauses (1) to (3), the commissioner must reject the application.
2201		-	66.25 (d) Notwithstanding any outstanding liens, upon proper application and payment of
2202		-	66.26applicable fees, the commissioner must issue a certificate of title, salvage title, or prior
2203		-	66.27salvage title in the name of the insurer. Issuance of a certificate of title, salvage title, or prior
2204		-	66.28salvage title extinguishes all existing liens against the vehicle. If the vehicle is sold, the
2205		-	66.29insurer or a designated agent must assign the title to the buyer and the vehicle is transferred
2206		-	66.30without any liens.
	2181	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 66.1 (2) requested the title or other necessary transfer documents from the owner; and
	2182	+	66.2 (3) provided notice to the owner and any lienholders as required under paragraph (b).
	2183	+	66.3If the insurer or a designated agent does not attest to completing the requirements under
	2184	+	66.4clauses (1) to (3), the commissioner must reject the application.
	2185	+	66.5 (d) Notwithstanding any outstanding liens, upon proper application and payment of
	2186	+	66.6applicable fees, the commissioner must issue a certificate of title, salvage title, or prior
	2187	+	66.7salvage title in the name of the insurer. Issuance of a certificate of title, salvage title, or prior
	2188	+	66.8salvage title extinguishes all existing liens against the vehicle. If the vehicle is sold, the
	2189	+	66.9insurer or a designated agent must assign the title to the buyer and the vehicle is transferred
	2190	+	66.10without any liens.
	2191	+	66.11Sec. 33. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
	2192	+	66.12CLAIM.
	2193	+	66.13 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
	2194	+	66.14company" or "auction company" means a business, organization, or individual that sells
	2195	+	66.15salvage vehicles on behalf of insurers.
	2196	+	66.16 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
	2197	+	66.17business in Minnesota requests an auction company to take possession of a salvage vehicle
	2198	+	66.18that is subject to an insurance claim and the insurance company does not subsequently take
	2199	+	66.19ownership of the vehicle, the insurance company may direct the auction company to release
	2200	+	66.20the vehicle to the owner or lienholder.
	2201	+	66.21 (b) The insurance company must provide the auction company notice, by commercial
	2202	+	66.22delivery service, email, or a proprietary electronic system accessible by both the insurance
	2203	+	66.23company and the auction company, authorizing the auction company to release the vehicle
	2204	+	66.24to the vehicle's owner or lienholder.
	2205	+	66.25 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
	2206	+	66.26company, the auction company must send two notices a minimum of 14 days apart to the
	2207	+	66.27owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
	2208	+	66.28from the auction company within 30 days of the date the first notice was sent. Each notice
	2209	+	66.29must include an invoice for any outstanding charges owed to the auction company that must
	2210	+	66.30be paid before the vehicle may be recovered.
	2211	+	66.31 (b) Notice under this subdivision must be sent to the address of the owner and any
	2212	+	66.32lienholder on record with the commissioner by certified mail or a commercially available
	2213	+	66.33delivery service that provides proof of delivery.
2207	2214		66Article 4 Sec. 33.
2208		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 67.1 Sec. 34. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
2209		-	67.2CLAIM.
2210		-	67.3 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
2211		-	67.4company" or "auction company" means a business, organization, or individual that sells
2212		-	67.5salvage vehicles on behalf of insurers.
2213		-	67.6 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
2214		-	67.7business in Minnesota requests an auction company to take possession of a salvage vehicle
2215		-	67.8that is subject to an insurance claim and the insurance company does not subsequently take
2216		-	67.9ownership of the vehicle, the insurance company may direct the auction company to release
2217		-	67.10the vehicle to the owner or lienholder.
2218		-	67.11 (b) The insurance company must provide the auction company notice, by commercial
2219		-	67.12delivery service, email, or a proprietary electronic system accessible by both the insurance
2220		-	67.13company and the auction company, authorizing the auction company to release the vehicle
2221		-	67.14to the vehicle's owner or lienholder.
2222		-	67.15 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
2223		-	67.16company, the auction company must send two notices a minimum of 14 days apart to the
2224		-	67.17owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
2225		-	67.18from the auction company within 30 days of the date the first notice was sent. Each notice
2226		-	67.19must include an invoice for any outstanding charges owed to the auction company that must
2227		-	67.20be paid before the vehicle may be recovered.
2228		-	67.21 (b) Notice under this subdivision must be sent to the address of the owner and any
2229		-	67.22lienholder on record with the commissioner by certified mail or a commercially available
2230		-	67.23delivery service that provides proof of delivery.
2231		-	67.24 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
2232		-	67.25the vehicle within 30 days of the date on which the first notice was sent under subdivision
2233		-	67.263, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
2234		-	67.27assigned to the auction company, and (3) without surrendering the certificate of title, the
2235		-	67.28auction company may request, on a form provided by the commissioner, that the
2236		-	67.29commissioner issue a certificate of title that is free of liens.
2237		-	67.30 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
2238		-	67.31by the insurance company required under subdivision 2, and (2) evidence of delivery of the
2239		-	67.32notices sent to the owner and any lienholders required under subdivision 3 or evidence that
2240		-	67.33the notices were undeliverable.
2241		-	67Article 4 Sec. 34.
2242		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 68.1 (c) Notwithstanding any outstanding liens against the vehicle, upon proper application
2243		-	68.2and receipt of any fees charged under section 168A.29, the commissioner must issue a
2244		-	68.3certificate of title that is free of liens and bears a salvage or prior salvage brand to the auction
2245		-	68.4company in possession of the vehicle.
2246		-	68.5 Sec. 35. Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:
2247		-	68.6 Subd. 2.Contracts of $100,000 or more.Notwithstanding any law to the contrary,
2248		-	68.7except as stated in section 58.137, and with respect to contracts a conventional loan or
2249		-	68.8contract for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
2250		-	68.9interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
2251		-	68.10sale, or advance made under a written contract, signed by the debtor, for the extension of
2252		-	68.11credit to the debtor in the amount of $100,000 or more, or any written extension and other
2253		-	68.12written modification of the written contract. The written contract, written extension, and
2254		-	68.13written modification are exempt from the other provisions of this chapter.
2255		-	68.14 ARTICLE 5
2256		-	68.15 MISCELLANEOUS COMMERCE POLICY
2257		-	68.16Section 1. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
2258		-	68.17 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
2259		-	68.18subdivision have the meanings given.
2260		-	68.19 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
2261		-	68.20 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
2262		-	68.21(10).
2263		-	68.22 (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
2264		-	68.23 (e) "Private data on individuals" has the meaning given in section 13.02, subdivision
2265		-	68.2412.
2266		-	68.25 (f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
2267		-	68.26 Subd. 2.Establishment.A common interest community ombudsperson position is
2268		-	68.27established within the Department of Commerce to assist unit owners in enforcing their
2269		-	68.28rights and to facilitate resolution of disputes between unit owners and associations. The
2270		-	68.29ombudsperson is appointed by the governor, serves in the unclassified service, and may be
2271		-	68.30removed only for just cause.
	2215	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 67.1 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
	2216	+	67.2the vehicle within 30 days of the date on which the first notice was sent under subdivision
	2217	+	67.33, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
	2218	+	67.4assigned to the auction company, and (3) without surrendering the certificate of title, the
	2219	+	67.5auction company may request, on a form provided by the commissioner, that the
	2220	+	67.6commissioner issue a certificate of title that is free of liens.
	2221	+	67.7 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
	2222	+	67.8by the insurance company required under subdivision 2, and (2) evidence of delivery of the
	2223	+	67.9notices sent to the owner and any lienholders required under subdivision 3 or evidence that
	2224	+	67.10the notices were undeliverable.
	2225	+	67.11 (c) Notwithstanding any outstanding liens against the vehicle, upon proper application
	2226	+	67.12and receipt of any fees charged under section 168A.29, the commissioner must issue a
	2227	+	67.13certificate of title that is free of liens and bears a salvage or prior salvage brand to the auction
	2228	+	67.14company in possession of the vehicle.
	2229	+	67.15Sec. 34. Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:
	2230	+	67.16 Subd. 2.Contracts of $100,000 or more.Notwithstanding any law to the contrary,
	2231	+	67.17except as stated in section 58.137, and with respect to contracts a conventional loan or
	2232	+	67.18contract for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
	2233	+	67.19interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
	2234	+	67.20sale, or advance made under a written contract, signed by the debtor, for the extension of
	2235	+	67.21credit to the debtor in the amount of $100,000 or more, or any written extension and other
	2236	+	67.22written modification of the written contract. The written contract, written extension, and
	2237	+	67.23written modification are exempt from the other provisions of this chapter.
	2238	+	67.24 ARTICLE 5
	2239	+	67.25 MISCELLANEOUS COMMERCE POLICY
	2240	+	67.26Section 1. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
	2241	+	67.27 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
	2242	+	67.28subdivision have the meanings given.
	2243	+	67.29 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
	2244	+	67.30 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
	2245	+	67.31(10).
	2246	+	67.32 (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
	2247	+	67Article 5 Section 1.
	2248	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 68.1 (e) "Private data on individuals" has the meaning given in section 13.02, subdivision
	2249	+	68.212.
	2250	+	68.3 (f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
	2251	+	68.4 Subd. 2.Establishment.A common interest community ombudsperson position is
	2252	+	68.5established within the Department of Commerce to assist unit owners in enforcing their
	2253	+	68.6rights and to facilitate resolution of disputes between unit owners and associations. The
	2254	+	68.7ombudsperson is appointed by the governor, serves in the unclassified service, and may be
	2255	+	68.8removed only for just cause.
	2256	+	68.9 Subd. 3.Qualifications.The ombudsperson must be selected without regard to political
	2257	+	68.10affiliation, must be qualified and experienced to perform the duties of the office, and must
	2258	+	68.11be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
	2259	+	68.12be employed by a business entity that provides management or consulting services to an
	2260	+	68.13association, or otherwise be affiliated with an association or management company. A
	2261	+	68.14person is prohibited from serving as ombudsperson while holding another public office.
	2262	+	68.15 Subd. 4.Duties.(a) The ombudsperson must assist unit owners, their tenants, and
	2263	+	68.16associations to understand and enforce their rights under chapter 515B and the governing
	2264	+	68.17documents of the specific unit owner's association, including by:
	2265	+	68.18 (1) creating and publishing plain language explanations of common provisions of common
	2266	+	68.19interest community declarations and bylaws; and
	2267	+	68.20 (2) publishing materials and providing resources and referrals related to the rights and
	2268	+	68.21responsibilities of unit owners and associations.
	2269	+	68.22 (b) Upon the request of a unit owner or association, the ombudsperson must provide
	2270	+	68.23dispute resolution services, including acting as a mediator, in disputes between a unit owner
	2271	+	68.24and an association concerning chapter 515B or the governing documents of the common
	2272	+	68.25interest community, except where:
	2273	+	68.26 (1) there is a complaint based on the same dispute pending in a judicial or administrative
	2274	+	68.27proceeding, or if there is a harassment or restraining order involved; or
	2275	+	68.28 (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
	2276	+	68.29or another alternative dispute resolution process.
	2277	+	68.30 (c) The ombudsperson may provide dispute resolution services for disputes between the
	2278	+	68.31tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
	2279	+	68.32resolution process.
2272	2280		68Article 5 Section 1.
2273		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 69.1 Subd. 3.Qualifications.The ombudsperson must be selected without regard to political
2274		-	69.2affiliation, must be qualified and experienced to perform the duties of the office, and must
2275		-	69.3be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
2276		-	69.4be employed by a business entity that provides management or consulting services to an
2277		-	69.5association, or otherwise be affiliated with an association or management company. A
2278		-	69.6person is prohibited from serving as ombudsperson while holding another public office.
2279		-	69.7 Subd. 4.Duties.(a) The ombudsperson must assist unit owners, their tenants, and
2280		-	69.8associations to understand and enforce their rights under chapter 515B and the governing
2281		-	69.9documents of the specific unit owner's association, including by:
2282		-	69.10 (1) creating and publishing plain language explanations of common provisions of common
2283		-	69.11interest community declarations and bylaws; and
2284		-	69.12 (2) publishing materials and providing resources and referrals related to the rights and
2285		-	69.13responsibilities of unit owners and associations.
2286		-	69.14 (b) Upon the request of a unit owner or association, the ombudsperson must provide
2287		-	69.15dispute resolution services, including acting as a mediator, in disputes between a unit owner
2288		-	69.16and an association concerning chapter 515B or the governing documents of the common
2289		-	69.17interest community, except where:
2290		-	69.18 (1) there is a complaint based on the same dispute pending in a judicial or administrative
2291		-	69.19proceeding, or if there is a harassment or restraining order involved; or
2292		-	69.20 (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
2293		-	69.21or another alternative dispute resolution process.
2294		-	69.22 (c) The ombudsperson may provide dispute resolution services for disputes between the
2295		-	69.23tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
2296		-	69.24resolution process.
2297		-	69.25 (d) The ombudsperson must compile and analyze complaints and inquiries involving
2298		-	69.26common interest communities to identify issues and trends. When assisting a unit owner in
2299		-	69.27enforcing their rights under this section, the ombudsperson may inform them of the existence
2300		-	69.28of other complaints from other unit owners in the same common interest community, subject
2301		-	69.29to subdivision 7.
2302		-	69.30 (e) The ombudsperson must maintain a website containing, at a minimum:
2303		-	69.31 (1) the text of chapter 515B and any other relevant statutes or rules;
	2281	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 69.1 (d) The ombudsperson must compile and analyze complaints and inquiries involving
	2282	+	69.2common interest communities to identify issues and trends. When assisting a unit owner in
	2283	+	69.3enforcing their rights under this section, the ombudsperson may inform them of the existence
	2284	+	69.4of other complaints from other unit owners in the same common interest community, subject
	2285	+	69.5to subdivision 7.
	2286	+	69.6 (e) The ombudsperson must maintain a website containing, at a minimum:
	2287	+	69.7 (1) the text of chapter 515B and any other relevant statutes or rules;
	2288	+	69.8 (2) information regarding the services provided by the Office of the Common Interest
	2289	+	69.9Community Ombudsperson, including assistance with dispute resolution;
	2290	+	69.10 (3) information regarding alternative dispute resolution methods and programs; and
	2291	+	69.11 (4) any other information that the ombudsperson determines is useful to unit owners,
	2292	+	69.12associations, common interest community boards of directors, and common interest
	2293	+	69.13community property management companies.
	2294	+	69.14 (f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
	2295	+	69.15provide reports and recommendations to the legislative committees with jurisdiction over
	2296	+	69.16common interest communities.
	2297	+	69.17 (g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
	2298	+	69.18times, enter and view premises within the control of the common interest community.
	2299	+	69.19 Subd. 5.Powers limited.The ombudsperson and the commissioner are prohibited from
	2300	+	69.20rendering a formal legal opinion regarding a dispute between a unit owner and an association.
	2301	+	69.21The ombudsperson and commissioner are prohibited from making a formal determination
	2302	+	69.22or issuing an order regarding disputes between a unit owner and an association. Nothing in
	2303	+	69.23this subdivision limits the ability of the commissioner to execute duties or powers under
	2304	+	69.24any other law.
	2305	+	69.25 Subd. 6.Cooperation.Upon request, unit owners and associations must participate in
	2306	+	69.26the dispute resolution process and make good faith efforts to resolve disputes under this
	2307	+	69.27section.
	2308	+	69.28 Subd. 7.Data.Data collected, created, or maintained by the office of the ombudsperson
	2309	+	69.29under this section are private data on individuals or nonpublic data.
	2310	+	69.30 Subd. 8.Landlord and tenant law.Nothing in this section modifies, supersedes, limits,
	2311	+	69.31or expands the rights and duties of landlords and tenants established under chapter 504B or
	2312	+	69.32any other law.
2304	2313		69Article 5 Section 1.
2305		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 70.1 (2) information regarding the services provided by the Office of the Common Interest
2306		-	70.2Community Ombudsperson, including assistance with dispute resolution;
2307		-	70.3 (3) information regarding alternative dispute resolution methods and programs; and
2308		-	70.4 (4) any other information that the ombudsperson determines is useful to unit owners,
2309		-	70.5associations, common interest community boards of directors, and common interest
2310		-	70.6community property management companies.
2311		-	70.7 (f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
2312		-	70.8provide reports and recommendations to the legislative committees with jurisdiction over
2313		-	70.9common interest communities.
2314		-	70.10 (g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
2315		-	70.11times, enter and view premises within the control of the common interest community.
2316		-	70.12 Subd. 5.Powers limited.The ombudsperson and the commissioner are prohibited from
2317		-	70.13rendering a formal legal opinion regarding a dispute between a unit owner and an association.
2318		-	70.14The ombudsperson and commissioner are prohibited from making a formal determination
2319		-	70.15or issuing an order regarding disputes between a unit owner and an association. Nothing in
2320		-	70.16this subdivision limits the ability of the commissioner to execute duties or powers under
2321		-	70.17any other law.
2322		-	70.18 Subd. 6.Cooperation.Upon request, unit owners and associations must participate in
2323		-	70.19the dispute resolution process and make good faith efforts to resolve disputes under this
2324		-	70.20section.
2325		-	70.21 Subd. 7.Data.Data collected, created, or maintained by the office of the ombudsperson
2326		-	70.22under this section are private data on individuals or nonpublic data.
2327		-	70.23 Subd. 8.Landlord and tenant law.Nothing in this section modifies, supersedes, limits,
2328		-	70.24or expands the rights and duties of landlords and tenants established under chapter 504B or
2329		-	70.25any other law.
2330		-	70.26 EFFECTIVE DATE.This section is effective July 1, 2026.
2331		-	70.27Sec. 2. Minnesota Statutes 2024, section 80E.12, is amended to read:
2332		-	70.28 80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
2333		-	70.29FACTORY BRANCHES.
2334		-	70.30 It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
2335		-	70.31motor vehicle dealer to do any of the following:
	2314	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 70.1 EFFECTIVE DATE.This section is effective July 1, 2026.
	2315	+	70.2 Sec. 2. Minnesota Statutes 2024, section 80E.12, is amended to read:
	2316	+	70.3 80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
	2317	+	70.4FACTORY BRANCHES.
	2318	+	70.5 It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
	2319	+	70.6motor vehicle dealer to do any of the following:
	2320	+	70.7 (a) order or accept delivery of any new motor vehicle, part or accessory thereof,
	2321	+	70.8equipment, or any other commodity not required by law which has not been voluntarily
	2322	+	70.9ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
	2323	+	70.10supersede reasonable provisions of the franchise requiring the dealer to market a
	2324	+	70.11representative line of the new motor vehicles the manufacturer or distributor is publicly
	2325	+	70.12advertising;
	2326	+	70.13 (b) order or accept delivery of any new motor vehicle, part or accessory thereof,
	2327	+	70.14equipment, or any other commodity not required by law in order for the dealer to obtain
	2328	+	70.15delivery of any other motor vehicle ordered by the dealer;
	2329	+	70.16 (c) order or accept delivery of any new motor vehicle with special features, accessories,
	2330	+	70.17or equipment not included in the list price of the motor vehicles as publicly advertised by
	2331	+	70.18the manufacturer or distributor;
	2332	+	70.19 (d) participate monetarily in an advertising campaign or contest, or to purchase any
	2333	+	70.20promotional materials, showroom, or other display decorations or materials at the expense
	2334	+	70.21of the new motor vehicle dealer;
	2335	+	70.22 (e) enter into any agreement with the manufacturer or to do any other act prejudicial to
	2336	+	70.23the new motor vehicle dealer by threatening to cancel a franchise or any contractual
	2337	+	70.24agreement existing between the dealer and the manufacturer. Notice in good faith to any
	2338	+	70.25dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
	2339	+	70.26a violation of sections 80E.01 to 80E.17;
	2340	+	70.27 (f) change the capital structure of the new motor vehicle dealer or the means by or
	2341	+	70.28through which the dealer finances the operation of the dealership; provided, that the new
	2342	+	70.29motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
	2343	+	70.30dealer; and also provided, that no change in the capital structure shall cause a change in the
	2344	+	70.31principal management or have the effect of a sale of the franchise without the consent of
	2345	+	70.32the manufacturer or distributor as provided in section 80E.13, paragraph (j);
2336	2346		70Article 5 Sec. 2.
2337		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 71.1 (a) order or accept delivery of any new motor vehicle, part or accessory thereof,
2338		-	71.2equipment, or any other commodity not required by law which has not been voluntarily
2339		-	71.3ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
2340		-	71.4supersede reasonable provisions of the franchise requiring the dealer to market a
2341		-	71.5representative line of the new motor vehicles the manufacturer or distributor is publicly
2342		-	71.6advertising;
2343		-	71.7 (b) order or accept delivery of any new motor vehicle, part or accessory thereof,
2344		-	71.8equipment, or any other commodity not required by law in order for the dealer to obtain
2345		-	71.9delivery of any other motor vehicle ordered by the dealer;
2346		-	71.10 (c) order or accept delivery of any new motor vehicle with special features, accessories,
2347		-	71.11or equipment not included in the list price of the motor vehicles as publicly advertised by
2348		-	71.12the manufacturer or distributor;
2349		-	71.13 (d) participate monetarily in an advertising campaign or contest, or to purchase any
2350		-	71.14promotional materials, showroom, or other display decorations or materials at the expense
2351		-	71.15of the new motor vehicle dealer;
2352		-	71.16 (e) enter into any agreement with the manufacturer or to do any other act prejudicial to
2353		-	71.17the new motor vehicle dealer by threatening to cancel a franchise or any contractual
2354		-	71.18agreement existing between the dealer and the manufacturer. Notice in good faith to any
2355		-	71.19dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
2356		-	71.20a violation of sections 80E.01 to 80E.17;
2357		-	71.21 (f) change the capital structure of the new motor vehicle dealer or the means by or
2358		-	71.22through which the dealer finances the operation of the dealership; provided, that the new
2359		-	71.23motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
2360		-	71.24dealer; and also provided, that no change in the capital structure shall cause a change in the
2361		-	71.25principal management or have the effect of a sale of the franchise without the consent of
2362		-	71.26the manufacturer or distributor as provided in section 80E.13, paragraph (j);
2363		-	71.27 (g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
2364		-	71.28from changing the executive management control of the new motor vehicle dealer unless
2365		-	71.29the franchisor proves that the change of executive management will result in executive
2366		-	71.30management control by a person who is not of good moral character or who does not meet
2367		-	71.31the franchisor's existing reasonable capital standards and, with consideration given to the
2368		-	71.32volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
2369		-	71.33business experience standards in the market area; provided, that where the manufacturer,
2370		-	71.34distributor, or factory branch rejects a proposed change in executive management control,
	2347	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 71.1 (g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
	2348	+	71.2from changing the executive management control of the new motor vehicle dealer unless
	2349	+	71.3the franchisor proves that the change of executive management will result in executive
	2350	+	71.4management control by a person who is not of good moral character or who does not meet
	2351	+	71.5the franchisor's existing reasonable capital standards and, with consideration given to the
	2352	+	71.6volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
	2353	+	71.7business experience standards in the market area; provided, that where the manufacturer,
	2354	+	71.8distributor, or factory branch rejects a proposed change in executive management control,
	2355	+	71.9the manufacturer, distributor, or factory branch shall give written notice of its reasons to
	2356	+	71.10the dealer;
	2357	+	71.11 (h) refrain from participation in the management of, investment in, or the acquisition
	2358	+	71.12of, any other line of new motor vehicle or related products or establishment of another make
	2359	+	71.13or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
	2360	+	71.14provided, however, that this clause does not apply unless the new motor vehicle dealer
	2361	+	71.15maintains a reasonable line of credit for each make or line of new motor vehicle, and that
	2362	+	71.16the new motor vehicle dealer remains in substantial compliance with the terms and conditions
	2363	+	71.17of the franchise and with any reasonable facilities requirements of the manufacturer and
	2364	+	71.18that the acquisition or addition is not unreasonable in light of all existing circumstances;
	2365	+	71.19provided further that if a manufacturer determines to deny a dealer's request for a change
	2366	+	71.20described in this paragraph, such denial must be in writing, must offer an analysis of the
	2367	+	71.21grounds for the denial addressing the criteria contained in this paragraph, and must be
	2368	+	71.22delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
	2369	+	71.23the completed application or documents customarily used by the manufacturer for dealer
	2370	+	71.24actions described in this paragraph. If a denial that meets the requirements of this paragraph
	2371	+	71.25is not sent within this period, the manufacturer shall be deemed to have given its consent
	2372	+	71.26to the proposed change.
	2373	+	71.27For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
	2374	+	71.28subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
	2375	+	71.29establish or maintain exclusive facilities for the manufacturer of a line make unless
	2376	+	71.30determined to be reasonable in light of all existing circumstances or the dealer and the
	2377	+	71.31manufacturer voluntarily agree to such a requirement and separate and adequate consideration
	2378	+	71.32was offered and accepted;
	2379	+	71.33 (i) during the course of the agreement, change the location of the new motor vehicle
	2380	+	71.34dealership or make any substantial alterations to the dealership premises during the course
	2381	+	71.35of the agreement, when to do so would be unreasonable or if the manufacturer fails to
2371	2382		71Article 5 Sec. 2.
2372		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 72.1the manufacturer, distributor, or factory branch shall give written notice of its reasons to
2373		-	72.2the dealer;
2374		-	72.3 (h) refrain from participation in the management of, investment in, or the acquisition
2375		-	72.4of, any other line of new motor vehicle or related products or establishment of another make
2376		-	72.5or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
2377		-	72.6provided, however, that this clause does not apply unless the new motor vehicle dealer
2378		-	72.7maintains a reasonable line of credit for each make or line of new motor vehicle, and that
2379		-	72.8the new motor vehicle dealer remains in substantial compliance with the terms and conditions
2380		-	72.9of the franchise and with any reasonable facilities requirements of the manufacturer and
2381		-	72.10that the acquisition or addition is not unreasonable in light of all existing circumstances;
2382		-	72.11provided further that if a manufacturer determines to deny a dealer's request for a change
2383		-	72.12described in this paragraph, such denial must be in writing, must offer an analysis of the
2384		-	72.13grounds for the denial addressing the criteria contained in this paragraph, and must be
2385		-	72.14delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
2386		-	72.15the completed application or documents customarily used by the manufacturer for dealer
2387		-	72.16actions described in this paragraph. If a denial that meets the requirements of this paragraph
2388		-	72.17is not sent within this period, the manufacturer shall be deemed to have given its consent
2389		-	72.18to the proposed change.
2390		-	72.19For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
2391		-	72.20subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
2392		-	72.21establish or maintain exclusive facilities for the manufacturer of a line make unless
2393		-	72.22determined to be reasonable in light of all existing circumstances or the dealer and the
2394		-	72.23manufacturer voluntarily agree to such a requirement and separate and adequate consideration
2395		-	72.24was offered and accepted;
2396		-	72.25 (i) during the course of the agreement, change the location of the new motor vehicle
2397		-	72.26dealership or make any substantial alterations to the dealership premises during the course
2398		-	72.27of the agreement, when to do so would be unreasonable or if the manufacturer fails to
2399		-	72.28provide the dealer 180 days' prior written notice of a required change in location or substantial
2400		-	72.29premises alteration; or
2401		-	72.30 (j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
2402		-	72.31a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
2403		-	72.32any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
2404		-	72.33between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
2405		-	72.34be referred to any person or tribunal other than the duly constituted courts of this state or
2406		-	72.35the United States, if the referral would be binding upon the new motor vehicle dealer.; or
2407		-	72Article 5 Sec. 2.
2408		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 73.1 (k) refrain from participation in an auto show described in section 168.27, subdivision
2409		-	73.210a.
2410		-	73.3 EFFECTIVE DATE.This section is effective the day following final enactment.
2411		-	73.4 Sec. 3. Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
2412		-	73.5read:
2413		-	73.6 Subd. 10a.Participation in auto shows.(a) A new motor vehicle dealer may participate
2414		-	73.7in an auto show outside the county where the dealer maintains the dealer's licensed location
2415		-	73.8to sell new vehicles without obtaining an additional license if:
2416		-	73.9 (1) the dealer participates in an auto show that takes place in a county other than the
2417		-	73.10county where the dealer maintains a licensed location not more than four times during any
2418		-	73.11calendar year;
2419		-	73.12 (2) the auto show is not held at a licensed location of any participating dealer;
2420		-	73.13 (3) the auto show is of a duration of no more than 12 consecutive days;
2421		-	73.14 (4) the auto show expressly prohibits:
2422		-	73.15 (i) the sale or lease of vehicles at the show;
2423		-	73.16 (ii) labeling or marking vehicles as "For Sale" or "Sold";
2424		-	73.17 (iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
2425		-	73.18label;
2426		-	73.19 (iv) using printed posters, cards, and other printed materials that contain special dealership
2427		-	73.20pricing; and
2428		-	73.21 (v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
2429		-	73.22 (b) The auto show may permit:
2430		-	73.23 (1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
2431		-	73.24and factory-approved rebates;
2432		-	73.25 (2) exhibitor staff to make appointments for potential customers to visit the dealership,
2433		-	73.26collect names of customer leads for later contact, and discuss the suggested retail price of
2434		-	73.27a vehicle and the availability of particular lines of vehicles; and
2435		-	73.28 (3) test rides or test drives of new vehicles, but only under a program conducted by the
2436		-	73.29auto show.
2437		-	73.30 EFFECTIVE DATE.This section is effective the day following final enactment.
2438		-	73Article 5 Sec. 3.
2439		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 74.1 Sec. 4. Minnesota Statutes 2024, section 216B.40, is amended to read:
2440		-	74.2 216B.40 EXCLUSIVE SERVICE RIGHT; SERVICE EXTENSION.
2441		-	74.3 Except as provided in sections 216B.42 and, 216B.421, and 216B.422, each electric
2442		-	74.4utility shall have the exclusive right to provide electric service at retail to each and every
2443		-	74.5present and future customer in its assigned service area and no electric utility shall render
2444		-	74.6or extend electric service at retail within the assigned service area of another electric utility
2445		-	74.7unless the electric utility consents thereto in writing; provided that any electric utility may
2446		-	74.8extend its facilities through the assigned service area of another electric utility if the extension
2447		-	74.9is necessary to facilitate the electric utility connecting its facilities or customers within its
2448		-	74.10own assigned service area.
2449		-	74.11Sec. 5. [216B.422] ELECTRICITY SALES FOR CHARGING ELECTRIC
2450		-	74.12VEHICLES.
2451		-	74.13 A retail seller of electricity used to recharge a battery that powers an electric vehicle, as
2452		-	74.14defined in section 169.011, subdivision 26a, and that is not otherwise a public utility under
2453		-	74.15this chapter, is not in violation of section 216B.40 if the electricity the retailer sells was
2454		-	74.16provided by the utility serving the location of the charging station.
2455		-	74.17Sec. 6. Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision to
2456		-	74.18read:
2457		-	74.19 Subd. 9.Administrative costs for discontinuation of telecommunication services.The
2458		-	74.20commission may assess fees for the actual commission costs to administer the discontinuation
2459		-	74.21of telecommunication services under section 237.181. The money received from the
2460		-	74.22assessment must be deposited into an account in the special revenue fund and all money
2461		-	74.23deposited is appropriated to the commission for the purposes specified under this subdivision.
2462		-	74.24The commission may initially assess for estimated costs under section 237.181, then must
2463		-	74.25adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
2464		-	74.26made under this subdivision is not subject to the cap on assessments provided in subdivision
2465		-	74.273 or any other law.
2466		-	74.28 EFFECTIVE DATE.This section is effective July 1, 2026.
2467		-	74.29Sec. 7. [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
2468		-	74.30ALTERNATIVES.
2469		-	74.31 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
2470		-	74.32the meanings given.
	2383	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 72.1provide the dealer 180 days' prior written notice of a required change in location or substantial
	2384	+	72.2premises alteration; or
	2385	+	72.3 (j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
	2386	+	72.4a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
	2387	+	72.5any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
	2388	+	72.6between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
	2389	+	72.7be referred to any person or tribunal other than the duly constituted courts of this state or
	2390	+	72.8the United States, if the referral would be binding upon the new motor vehicle dealer.; or
	2391	+	72.9 (k) refrain from participation in an auto show described in section 168.27, subdivision
	2392	+	72.1010a.
	2393	+	72.11 EFFECTIVE DATE.This section is effective the day following final enactment.
	2394	+	72.12Sec. 3. Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
	2395	+	72.13read:
	2396	+	72.14 Subd. 10a.Participation in auto shows.(a) A new motor vehicle dealer may participate
	2397	+	72.15in an auto show outside the county where the dealer maintains the dealer's licensed location
	2398	+	72.16to sell new vehicles without obtaining an additional license if:
	2399	+	72.17 (1) the dealer participates in an auto show that takes place in a county other than the
	2400	+	72.18county where the dealer maintains a licensed location not more than four times during any
	2401	+	72.19calendar year;
	2402	+	72.20 (2) the auto show is not held at a licensed location of any participating dealer;
	2403	+	72.21 (3) the auto show is of a duration of no more than 12 consecutive days;
	2404	+	72.22 (4) the auto show expressly prohibits:
	2405	+	72.23 (i) the sale or lease of vehicles at the show;
	2406	+	72.24 (ii) labeling or marking vehicles as "For Sale" or "Sold";
	2407	+	72.25 (iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
	2408	+	72.26label;
	2409	+	72.27 (iv) using printed posters, cards, and other printed materials that contain special dealership
	2410	+	72.28pricing; and
	2411	+	72.29 (v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
	2412	+	72.30 (b) The auto show may permit:
	2413	+	72Article 5 Sec. 3.
	2414	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 73.1 (1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
	2415	+	73.2and factory-approved rebates;
	2416	+	73.3 (2) exhibitor staff to make appointments for potential customers to visit the dealership,
	2417	+	73.4collect names of customer leads for later contact, and discuss the suggested retail price of
	2418	+	73.5a vehicle and the availability of particular lines of vehicles; and
	2419	+	73.6 (3) test rides or test drives of new vehicles, but only under a program conducted by the
	2420	+	73.7auto show.
	2421	+	73.8 EFFECTIVE DATE.This section is effective the day following final enactment.
	2422	+	73.9 Sec. 4. Minnesota Statutes 2024, section 216B.40, is amended to read:
	2423	+	73.10 216B.40 EXCLUSIVE SERVICE RIGHT; SERVICE EXTENSION.
	2424	+	73.11 Except as provided in sections 216B.42 and, 216B.421, and 216B.422, each electric
	2425	+	73.12utility shall have the exclusive right to provide electric service at retail to each and every
	2426	+	73.13present and future customer in its assigned service area and no electric utility shall render
	2427	+	73.14or extend electric service at retail within the assigned service area of another electric utility
	2428	+	73.15unless the electric utility consents thereto in writing; provided that any electric utility may
	2429	+	73.16extend its facilities through the assigned service area of another electric utility if the extension
	2430	+	73.17is necessary to facilitate the electric utility connecting its facilities or customers within its
	2431	+	73.18own assigned service area.
	2432	+	73.19Sec. 5. [216B.422] ELECTRICITY SALES FOR CHARGING ELECTRIC
	2433	+	73.20VEHICLES.
	2434	+	73.21 A retail seller of electricity used to recharge a battery that powers an electric vehicle, as
	2435	+	73.22defined in section 169.011, subdivision 26a, and that is not otherwise a public utility under
	2436	+	73.23this chapter, is not in violation of section 216B.40 if the electricity the retailer sells was
	2437	+	73.24provided by the utility serving the location of the charging station.
	2438	+	73.25Sec. 6. Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision to
	2439	+	73.26read:
	2440	+	73.27 Subd. 9.Administrative costs for discontinuation of telecommunication services.The
	2441	+	73.28commission may assess fees for the actual commission costs to administer the discontinuation
	2442	+	73.29of telecommunication services under section 237.181. The money received from the
	2443	+	73.30assessment must be deposited into an account in the special revenue fund and all money
	2444	+	73.31deposited is appropriated to the commission for the purposes specified under this subdivision.
	2445	+	73Article 5 Sec. 6.
	2446	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 74.1The commission may initially assess for estimated costs under section 237.181, then must
	2447	+	74.2adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
	2448	+	74.3made under this subdivision is not subject to the cap on assessments provided in subdivision
	2449	+	74.43 or any other law.
	2450	+	74.5 EFFECTIVE DATE.This section is effective July 1, 2026.
	2451	+	74.6 Sec. 7. [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
	2452	+	74.7ALTERNATIVES.
	2453	+	74.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
	2454	+	74.9the meanings given.
	2455	+	74.10 (b) "Commission" means the Public Utilities Commission.
	2456	+	74.11 (c) "Voice over internet protocol" or "VOIP" has the meaning given in section 237.025.
	2457	+	74.12 (d) "Alternative providers" means one or more providers the Federal Communications
	2458	+	74.13Commission has identified through Broadband Data Collection, location fabric data, or a
	2459	+	74.14successor data program as having a provider offering wireline broadband access service
	2460	+	74.15through fiber optic cable to the home capable of carrying VOIP of at least 25 megabits per
	2461	+	74.16second download speed and three megabit per second upload speed and offers VOIP services
	2462	+	74.17at a rate no more than 120 percent of the current rate for local flat-rated voice service. Other
	2463	+	74.18Federal Communications Commission-approved adequate replacements shall be considered
	2464	+	74.19by the commission upon request of the telephone company or telecommunications carrier
	2465	+	74.20if the telephone company or telecommunications carrier fulfills the required obligations set
	2466	+	74.21forth in this section.
	2467	+	74.22 Subd. 2.Customer transition plans.(a) A telephone company or telecommunications
	2468	+	74.23carrier may submit a petition to the commission for approval of a customer transition plan
	2469	+	74.24to discontinue telecommunications service in an area where the telephone company or
	2470	+	74.25telecommunications carrier has shown that customers in the affected area have access to
	2471	+	74.26one or more providers for the telecommunications service provided by the telephone company
	2472	+	74.27or telecommunications carrier.
	2473	+	74.28 (b) The proposed customer transition plan must:
	2474	+	74.29 (1) clearly identify the area and affected customers;
	2475	+	74.30 (2) clearly identify the alternative providers available to customers in the affected area;
	2476	+	74.31 (3) provide for technical assistance to affected customers who request assistance with
	2477	+	74.32the transition to an alternate provider;
2471	2478		74Article 5 Sec. 7.
2472		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 75.1 (b) ~~"Commission" means the Public Utilities~~ Commission.
2473		-	75.2 (c) ~~"Voice over internet protocol" or "VOIP" has~~ the ~~meaning given in section 237.025.~~
2474		-	75.~~3 (d) "Alternative providers" means one or more providers~~ the ~~Federal Communications~~
2475		-	75.~~4Commission has identified through Broadband Data Collection,~~ ~~location fabric data,~~ ~~or a~~
2476		-	75.~~5successor data program as having a provider offering wireline broadband access service~~
2477		-	75.~~6through fiber optic cable to~~ the ~~home capable of carrying VOIP of at least 25 megabits per~~
2478		-	75.~~7second download speed and three megabit per second upload speed and offers VOIP services~~
2479		-	75.~~8at~~ a ~~rate no more than 120 percent of~~ the ~~current rate for local flat-rated~~ ~~voice service. Other~~
2480		-	75.~~9Federal Communications Commission-approved~~ ~~adequate replacements shall be considered~~
2481		-	75.~~10by~~ the commission ~~upon request of~~ the ~~telephone company or telecommunications carrier~~
2482		-	75.~~11if the telephone company or telecommunications carrier fulfills the required obligations set~~
2483		-	75.~~12forth in this section.~~
2484		-	75.~~13 Subd.~~ ~~2.Customer transition plans.(a) A telephone company or telecommunications~~
2485		-	75.~~14carrier may submit a petition to the commission~~ for ~~approval of a customer transition plan~~
2486		-	75.~~15to discontinue telecommunications service~~ in an area ~~where~~ the ~~telephone company or~~
2487		-	75.~~16telecommunications carrier has shown that~~ customers in ~~the affected area have access to~~
2488		-	75.~~17one or more providers~~ for ~~the telecommunications service provided by the telephone company~~
2489		-	75.~~18or~~ telecommunications carrier.
2490		-	75.~~19 (b)~~ The ~~proposed~~ customer ~~transition plan must:~~
2491		-	75.~~20 (1) clearly identify~~ the ~~area~~ and ~~affected customers;~~
2492		-	75.~~21 (2) clearly identify~~ the ~~alternative providers available to customers in~~ the ~~affected area;~~
2493		-	75.22 ~~(3) provide for technical assistance to affected customers who request assistance with~~
2494		-	75.~~23the transition to~~ an ~~alternate provider;~~
2495		-	75.~~24 (4) draft consumer dispute forms for commission approval;~~
2496		-	75.~~25 (5) describe~~ the ~~public education meeting plans for affected customers when required~~
2497		-	75.~~26by~~ the ~~commission; and~~
2498		-	75.27 (6) ~~provide onetime connection fees and device costs for households eligible for credit~~
2499		-	75.~~28as defined in section 237.70, subdivision 4a.~~
2500		-	75.~~29 Subd.~~ ~~3.Commission process.The commission shall provide for notice and comment~~
2501		-	75.~~30on the petition for a customer transition plan.~~ The commission ~~shall approve, modify,~~ or
2502		-	75.~~31reject~~ a ~~petition filed under this section~~. ~~The commission shall only approve a plan under~~
2503		-	75.~~32this section if it finds that~~ the ~~telephone company or telecommunications carrier~~:
	2479	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 75.1 (4) draft consumer dispute forms for commission approval;
	2480	+	75.2 (5) describe the public education meeting plans for affected customers when required
	2481	+	75.3by the commission; and
	2482	+	75.4 (6) provide onetime connection fees and device costs for households eligible for credit
	2483	+	75.5as defined in section 237.70, subdivision 4a.
	2484	+	75.6 Subd. 3.Commission process.The commission shall provide for notice and comment
	2485	+	75.7on the petition for a customer transition plan. The commission shall approve, modify, or
	2486	+	75.8reject a petition filed under this section. The commission shall only approve a plan under
	2487	+	75.9this section if it finds that the telephone company or telecommunications carrier:
	2488	+	75.10 (1) has met its burden of demonstrating to the commission that customers in the affected
	2489	+	75.11area have at least one alternative provider available to those customers;
	2490	+	75.12 (2) has demonstrated that it will put sufficient resources into assisting customers to
	2491	+	75.13transition to an alternate provider, including providing onetime connection fees and device
	2492	+	75.14costs for households eligible for credit as defined in section 237.70, subdivision 4a; and
	2493	+	75.15 (3) has held a public meeting in the affected area as required by the commission and
	2494	+	75.16provided written notice of the meeting to customers 60 days in advance.
	2495	+	75.17 Subd. 4.Obligations upon approval.Upon approval of a petition for a customer
	2496	+	75.18transition plan under this section, the telephone company or telecommunications carrier
	2497	+	75.19that proposed the petition must continue to serve an affected customer until the telephone
	2498	+	75.20company or telecommunications carrier completes the required actions in subdivision 2 and
	2499	+	75.21any disputes brought by the customer before the commission are resolved.
	2500	+	75.22 Subd. 5.Dispute resolution.The commission must resolve any dispute over whether a
	2501	+	75.23location has service available at the rates described in subdivision 1 on an expedited basis
	2502	+	75.24pursuant to section 237.61, prior to the date services will be discontinued. Such disputes
	2503	+	75.25must be submitted at least 90 days prior to the date of service discontinuance and resolved
	2504	+	75.2615 days prior to the date of service discontinuation.
	2505	+	75.27 Subd. 6.Reinstatement of service.(a) The commission may reinstate existing obligations
	2506	+	75.28on the telephone company or telecommunications carrier to provide services to customers
	2507	+	75.29affected by this section:
	2508	+	75.30 (1) on the commission's own initiative; or
	2509	+	75.31 (2) in response to a request for agency action.
	2510	+	75.32 (b) Before acting under this subdivision, the commission must:
2504	2511		75Article 5 Sec. 7.
2505		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 76.1 (1) ~~has met its burden of demonstrating to the commission that customers in the affected~~
2506		-	76.~~2area have at least one alternative provider available~~ to ~~those customers;~~
2507		-	76.~~3 (2) has demonstrated that it will put sufficient resources into assisting customers~~ to
2508		-	76.~~4transition to an alternate provider,~~ ~~including providing onetime connection fees and device~~
2509		-	76.~~5costs for households eligible for credit as defined~~ in ~~section 237.70, subdivision 4a; and~~
2510		-	76.~~6 (3) has held a public meeting in the affected area as required by the commission and~~
2511		-	76.~~7provided written notice of the meeting to customers 60 days~~ in ~~advance.~~
2512		-	76.~~8 Subd.~~ ~~4.Obligations upon approval.Upon approval~~ of ~~a petition for a customer~~
2513		-	76.~~9transition plan under this section, the telephone company~~ or ~~telecommunications carrier~~
2514		-	76.~~10that proposed the petition must continue~~ to ~~serve an affected customer until the telephone~~
2515		-	76.~~11company or telecommunications carrier completes the required actions in subdivision 2 and~~
2516		-	76.~~12any disputes brought by the customer before the commission are resolved.~~
2517		-	76.~~13 Subd.~~ ~~5.Dispute resolution.~~The ~~commission must resolve any dispute over whether a~~
2518		-	76.~~14location has service available at the rates described in subdivision 1 on an expedited basis~~
2519		-	76.~~15pursuant to~~ section ~~237.61~~, ~~prior to the date services will be discontinued~~. ~~Such disputes~~
2520		-	76.~~16must be submitted at least 90 days prior to the date of service discontinuance and resolved~~
2521		-	76.~~1715 days prior to~~ the ~~date of service discontinuation.~~
2522		-	76.~~18 Subd~~. ~~6.Reinstatement of service.(a) The commission may reinstate existing obligations~~
2523		-	76.~~19on the telephone company~~ or ~~telecommunications carrier to provide services to customers~~
2524		-	76.~~20affected by this section:~~
2525		-	76.~~21 (1) on the commission's own initiative;~~ or
2526		-	76.~~22 (2) in response~~ to ~~a request for agency action.~~
2527		-	76.~~23 (b) Before acting under this subdivision, the commission must:~~
2528		-	76.24 (1) ~~provide notice and conduct a hearing;~~ ~~and~~
2529		-	76.~~25 (2) determine that reinstating any existing obligation~~ to ~~serve is necessary because~~
2530		-	76.~~26customers lack access to one or more providers.~~
2531		-	76.~~27 (c)~~ The ~~telephone company or telecommunications carrier that would be affected by~~
2532		-	76.~~28modification~~ or ~~reinstatement of service shall bear~~ the ~~burden of proof in a proceeding under~~
2533		-	76.~~29this subdivision~~.
2534		-	76.30 ~~Subd. 7.Local exchange carrier.Nothing~~ in ~~this section relieves an incumbent local~~
2535		-	76.~~31exchange carrier as defined under United States Code, title 47, section 251(h)(1),~~ of ~~its~~
2536		-	76Article 5 Sec. 7.
2537		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 77.~~1existing interconnection obligations~~ or ~~terminates existing interconnection agreements in a~~
2538		-	77.~~2manner other than according to their terms or other existing law.~~
2539		-	77.~~3 Subd. 8.No relinquishment of ETC status.~~A ~~petition approved under this section~~
2540		-	77.~~4shall not be deemed to be a relinquishment of any eligible telecommunications carrier~~
2541		-	77.~~5designation that has been granted~~ to the ~~petitioning telephone company or~~
2542		-	77.~~6telecommunications carrier~~ under ~~federal~~ and ~~state law.~~
2543		-	77.~~7 EFFECTIVE DATE.This section is effective July 1~~, ~~2026.~~
2544		-	77.~~8 Sec~~. ~~8. [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT.~~
2545		-	77.~~9 Subdivision 1.Definitions.(a)~~ For ~~purposes~~ of ~~this section,~~ the ~~following terms have~~
2546		-	77.~~10the meanings given~~.
2547		-	77.~~11 (b) "Electric~~ vehicle ~~supply equipment"~~ ~~or "EVSE" means a conductor, including an~~
2548		-	77.~~12ungrounded, grounded,~~ ~~and equipment grounding conductor,~~ ~~electric vehicle connector~~,
2549		-	77.~~13attachment plug,~~ ~~and~~ other ~~fitting, device,~~ ~~power outlet,~~ ~~or apparatus installed specifically~~
2550		-	77.~~14to measure,~~ ~~deliver, and compute the price of electrical energy delivered to an electric~~
2551		-	77.~~15vehicle~~.
2552		-	77.~~16 (c) "Electricity~~ ~~sold as vehicle fuel"~~ ~~means~~ electrical energy ~~transferred to or stored~~
2553		-	77.~~17onboard an electric vehicle primarily to propel~~ the ~~electric vehicle.~~
2554		-	77.~~18 (d) "Fixed~~ ~~service" means a service that continuously provides~~ the ~~nominal power that~~
2555		-	77.~~19is possible with~~ the ~~equipment as installed.~~
2556		-	77.~~20 (e) "Nominal~~ ~~power" means~~ the ~~intended, named, or stated, as opposed to~~ the ~~actual,~~
2557		-	77.~~21rate~~ of ~~electrical energy~~ transfer.
2558		-	77.22 (f) ~~"Variable service" means a service that may be controlled, resulting in periods~~ of
2559		-	77.~~23reduced or interrupted transfer of electrical energy.~~
2560		-	77.~~24 Subd.~~ ~~2.Inspection; fees.The director must inspect~~ a ~~retail EVSE annually~~ or ~~as often~~
2561		-	77.~~25as is possible given budgetary and staffing limitations. The director~~ must ~~charge an EVSE~~
2562		-	77.~~26owner~~ a ~~$100 fee to inspect and test each EVSE charging port.~~
2563		-	77.~~27 Subd.~~ ~~3.EVSE program account;~~ ~~appropriation.An EVSE program account is created~~
2564		-	77.~~28in the special revenue fund~~ of ~~the state treasury~~. ~~The commissioner must credit to the account~~
2565		-	77.~~29fees collected from inspections under this section~~ and ~~appropriations and transfers made to~~
2566		-	77.~~30the account.~~ ~~Earnings~~, ~~including interest~~, ~~dividends, and any other earnings arising from~~
2567		-	77.~~31assets of the account,~~ ~~must be credited~~ to ~~the account. Money in~~ the ~~account is appropriated~~
2568		-	77.~~32to~~ the ~~commissioner to pay~~ for ~~operations of the EVSE program.~~
	2512	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 76.1 (1) provide notice and conduct a hearing; and
	2513	+	76.2 (2) determine that reinstating any existing obligation to serve is necessary because
	2514	+	76.3customers lack access to one or more providers.
	2515	+	76.4 (c) The telephone company or telecommunications carrier that would be affected by
	2516	+	76.5modification or reinstatement of service shall bear the burden of proof in a proceeding under
	2517	+	76.6this subdivision.
	2518	+	76.7 Subd. 7.Local exchange carrier.Nothing in this section relieves an incumbent local
	2519	+	76.8exchange carrier as defined under United States Code, title 47, section 251(h)(1), of its
	2520	+	76.9existing interconnection obligations or terminates existing interconnection agreements in a
	2521	+	76.10manner other than according to their terms or other existing law.
	2522	+	76.11 Subd. 8.No relinquishment of ETC status.A petition approved under this section
	2523	+	76.12shall not be deemed to be a relinquishment of any eligible telecommunications carrier
	2524	+	76.13designation that has been granted to the petitioning telephone company or
	2525	+	76.14telecommunications carrier under federal and state law.
	2526	+	76.15 EFFECTIVE DATE.This section is effective July 1, 2026.
	2527	+	76.16Sec. 8. [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT.
	2528	+	76.17 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
	2529	+	76.18the meanings given.
	2530	+	76.19 (b) "Electric vehicle supply equipment" or "EVSE" means a conductor, including an
	2531	+	76.20ungrounded, grounded, and equipment grounding conductor, electric vehicle connector,
	2532	+	76.21attachment plug, and other fitting, device, power outlet, or apparatus installed specifically
	2533	+	76.22to measure, deliver, and compute the price of electrical energy delivered to an electric
	2534	+	76.23vehicle.
	2535	+	76.24 (c) "Electricity sold as vehicle fuel" means electrical energy transferred to or stored
	2536	+	76.25onboard an electric vehicle primarily to propel the electric vehicle.
	2537	+	76.26 (d) "Fixed service" means a service that continuously provides the nominal power that
	2538	+	76.27is possible with the equipment as installed.
	2539	+	76.28 (e) "Nominal power" means the intended, named, or stated, as opposed to the actual,
	2540	+	76.29rate of electrical energy transfer.
	2541	+	76.30 (f) "Variable service" means a service that may be controlled, resulting in periods of
	2542	+	76.31reduced or interrupted transfer of electrical energy.
	2543	+	76Article 5 Sec. 8.
	2544	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 77.1 Subd. 2.Inspection; fees.The director must inspect a retail EVSE annually or as often
	2545	+	77.2as is possible given budgetary and staffing limitations. The director must charge an EVSE
	2546	+	77.3owner a $100 fee to inspect and test each EVSE charging port.
	2547	+	77.4 Subd. 3.EVSE program account; appropriation.An EVSE program account is created
	2548	+	77.5in the special revenue fund of the state treasury. The commissioner must credit to the account
	2549	+	77.6fees collected from inspections under this section and appropriations and transfers made to
	2550	+	77.7the account. Earnings, including interest, dividends, and any other earnings arising from
	2551	+	77.8assets of the account, must be credited to the account. Money in the account is appropriated
	2552	+	77.9to the commissioner to pay for operations of the EVSE program.
	2553	+	77.10 Subd. 4.Method of sale.(a) Electrical energy kept, offered, or exposed for sale and
	2554	+	77.11sold at retail as a vehicle fuel must be expressed in kilowatt-hour units.
	2555	+	77.12 (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold,
	2556	+	77.13a fee may be assessed for other services. A fee assessed for another service may be a fixed
	2557	+	77.14fee or may be based on time measurement.
	2558	+	77.15 Subd. 5.Labeling.(a) A computing EVSE must display the unit price in whole cents
	2559	+	77.16or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is unlimited
	2560	+	77.17or free of charge, the computing EVSE must clearly indicate that the electrical energy is
	2561	+	77.18unlimited or free of charge in lieu of the unit price.
	2562	+	77.19 (b) For a fixed service application, the following information must be conspicuously
	2563	+	77.20displayed or posted on the face of the device:
	2564	+	77.21 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
	2565	+	77.22 (2) the type of electrical energy transfer.
	2566	+	77.23 (c) If a fee is assessed for other services in direct connection with fueling the vehicle,
	2567	+	77.24including but not limited to a fee based on time measurement or a fixed fee, the additional
	2568	+	77.25fee must be displayed.
	2569	+	77.26 (d) An EVSE must be labeled in a manner that complies with Federal Trade
	2570	+	77.27Commissioner labeling requirements for alternative fuels and alternative fueled vehicles,
	2571	+	77.28Code of Federal Regulations, title 16, part 309.
	2572	+	77.29 (e) An EVSE must be listed and labeled in a manner that complies with the National
	2573	+	77.30Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems.
	2574	+	77.31 Subd. 6.Advertising; sign prices.(a) When a sign or device is used to advertise the
	2575	+	77.32price of electricity to fuel a vehicle, the price for electrical energy must be expressed in
2569	2576		77Article 5 Sec. 8.
2570		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 78.1 Subd. 4.Method of sale.(a) Electrical energy kept, offered, or exposed for sale and
2571		-	78.2sold at retail as a vehicle fuel must be expressed in kilowatt-hour units.
2572		-	78.3 (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold,
2573		-	78.4a fee may be assessed for other services. A fee assessed for another service may be a fixed
2574		-	78.5fee or may be based on time measurement.
2575		-	78.6 Subd. 5.Labeling.(a) A computing EVSE must display the unit price in whole cents
2576		-	78.7or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is unlimited
2577		-	78.8or free of charge, the computing EVSE must clearly indicate that the electrical energy is
2578		-	78.9unlimited or free of charge in lieu of the unit price.
2579		-	78.10 (b) For a fixed service application, the following information must be conspicuously
2580		-	78.11displayed or posted on the face of the device:
2581		-	78.12 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
2582		-	78.13 (2) the type of electrical energy transfer.
2583		-	78.14 (c) If a fee is assessed for other services in direct connection with fueling the vehicle,
2584		-	78.15including but not limited to a fee based on time measurement or a fixed fee, the additional
2585		-	78.16fee must be displayed.
2586		-	78.17 (d) An EVSE must be labeled in a manner that complies with Federal Trade
2587		-	78.18Commissioner labeling requirements for alternative fuels and alternative fueled vehicles,
2588		-	78.19Code of Federal Regulations, title 16, part 309.
2589		-	78.20 (e) An EVSE must be listed and labeled in a manner that complies with the National
2590		-	78.21Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems.
2591		-	78.22 Subd. 6.Advertising; sign prices.(a) When a sign or device is used to advertise the
2592		-	78.23price of electricity to fuel a vehicle, the price for electrical energy must be expressed in
2593		-	78.24price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is
2594		-	78.25unlimited or free of charge, the advertising or sign must clearly indicate that the electrical
2595		-	78.26energy is unlimited or free of charge in lieu of the unit price.
2596		-	78.27 (b) If more than one electrical energy unit price may apply over the duration of a single
2597		-	78.28transaction or sale to the general public, the terms and conditions that determine each unit
2598		-	78.29price and the times each unit price apply must be clearly displayed.
2599		-	78.30 (c) For a fixed service application, the following information must be conspicuously
2600		-	78.31displayed or posted:
2601		-	78.32 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
2602		-	78Article 5 Sec. 8.
2603		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 79.1 (2) the type of electrical energy transfer.
2604		-	79.2 (d) For a variable service application, the following information must be conspicuously
2605		-	79.3displayed or posted:
2606		-	79.4 (1) the type of delivery;
2607		-	79.5 (2) the minimum and maximum power transfer that may occur during a transaction,
2608		-	79.6including whether service may be reduced to zero;
2609		-	79.7 (3) the conditions under which a variation in electrical energy transfer occurs; and
2610		-	79.8 (4) the type of electrical energy transfer.
2611		-	79.9 (e) If a fee is assessed for other services in direct connection with the fueling of the
2612		-	79.10vehicle, including but not limited to a fee based on time measurement or a fixed fee, the
2613		-	79.11additional fee must be included on all street signs or other advertising.
2614		-	79.12Sec. 9. [325F.079] SALE OF NITROUS OXIDE.
2615		-	79.13 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
2616		-	79.14the meanings given.
2617		-	79.15 (b) "Nitrous oxide" means a canister containing nitrous oxide that is sold by a retailer.
2618		-	79.16 (c) "Retailer" means a person, located within Minnesota or elsewhere, engaged in the
2619		-	79.17business of selling or offering for sale nitrous oxide to a consumer in Minnesota.
2620		-	79.18 Subd. 2.Prohibition.A retailer is prohibited from selling or offering for sale nitrous
2621		-	79.19oxide to a consumer in Minnesota.
2622		-	79.20 Subd. 3.Exceptions.Nitrous oxide may be purchased for the following reasons:
2623		-	79.21 (1) care or treatment of a disease, condition, or injury by a licensed medical or dental
2624		-	79.22practitioner;
2625		-	79.23 (2) possession and use by a manufacturer as part of a manufacturing process or industrial
2626		-	79.24operation;
2627		-	79.25 (3) possession, use, or sale as a propellant in food preparation for restaurant, food service,
2628		-	79.26or houseware products; or
2629		-	79.27 (4) possession, use, or sale of nitrous oxide for automative purposes.
2630		-	79.28 Subd. 4.Violation.A person who violates this section is guilty of a misdemeanor.
2631		-	79Article 5 Sec. 9.
2632		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 80.1 Sec. 10. [325F.677] AVAILABILITY OF WATER AT PLACES OF
2633		-	80.2ENTERTAINMENT.
2634		-	80.3 Subdivision 1.Definition.For purposes of this section, "place of entertainment" has the
2635		-	80.4meaning given in section 325F.676, subdivision 1, paragraph (h).
2636		-	80.5 Subd. 2.Available water requirement.When occupancy exceeds 100 attendees and
2637		-	80.6where an attendee must have a ticket in order to access the place of entertainment, a place
2638		-	80.7of entertainment must provide attendees with access to potable water by:
2639		-	80.8 (1) providing water at no cost to the attendees;
2640		-	80.9 (2) allowing attendees to bring factory-sealed bottled water into the place of
2641		-	80.10entertainment; or
2642		-	80.11 (3) allowing attendees to bring an empty water bottle to the place of entertainment and
2643		-	80.12providing attendees with access to potable water to fill the bottle. A place of entertainment
2644		-	80.13may prohibit certain types and sizes of water bottles in order to protect the safety of others.
2645		-	80.14 Subd. 3.Exceptions.An exhibit, gallery, or presentation space where beverages are
2646		-	80.15prohibited is not required to allow water into the exhibit, gallery, or presentation space if
2647		-	80.16water is available at no cost in an accessible location outside of the museum exhibit gallery
2648		-	80.17or presentation space.
2649		-	80.18Sec. 11. Minnesota Statutes 2024, section 325G.24, subdivision 2, is amended to read:
2650		-	80.19 Subd. 2.Right of member unilateral termination.(a) Any person who has elected to
2651		-	80.20become a member of a club may unilaterally terminate such membership, in the person's
2652		-	80.21exclusive discretion, by giving notice of termination at any time.
2653		-	80.22 (b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
2654		-	80.23and postage prepaid.
2655		-	80.24 (c) A club must not impose a termination fee or any other liability on the member for
2656		-	80.25termination under this subdivision.
2657		-	80.26 (d) Termination under this subdivision is effective at the end of the membership term
2658		-	80.27in which the member provides the notice of termination. If membership is at-will without
2659		-	80.28a defined membership term, then termination under this subdivision is effective immediately,
2660		-	80.29unless no later than 30 days after the date of a verified consumer's notice of termination. If
2661		-	80.30the member indicates a future effective date of termination, in which event beyond those
2662		-	80.31set forth herein, the date indicated by the member is the effective date of termination.
2663		-	80Article 5 Sec. 11.
2664		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 81.1 (e) If a member provides notice of termination at any time before midnight of the third
2665		-	81.2business day following the date on which membership was attained, the club must treat the
2666		-	81.3notice as a notice of cancellation under subdivision 1, unless the member specifically
2667		-	81.4provides for a future termination effective date.
2668		-	81.5 EFFECTIVE DATE.This section is effective July 1, 2025, and applies to contracts
2669		-	81.6entered into, modified, or renewed on or after that date.
2670		-	81.7 Sec. 12. [515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
2671		-	81.8 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
2672		-	81.9subdivision have the meanings given.
2673		-	81.10 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
2674		-	81.11 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
2675		-	81.12(10).
2676		-	81.13 (d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
2677		-	81.14 (e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
2678		-	81.15 (f) "Unit" has the meaning given in section 515B.1-103, clause (35).
2679		-	81.16 Subd. 2.Establishment.The Department of Commerce must establish a register that
2680		-	81.17contains the information required under subdivision 3 regarding each residential common
2681		-	81.18interest community or similar association governed by this chapter, operating within
2682		-	81.19Minnesota.
2683		-	81.20 Subd. 3.Registration required.(a) A residential common interest community or similar
2684		-	81.21association governed by this chapter must annually register under this section if the common
2685		-	81.22interest community or similar association owns any number of units in Minnesota.
2686		-	81.23 (b) A residential common interest community or similar association governed by this
2687		-	81.24chapter must provide the following information to the department when registering:
2688		-	81.25 (1) the common interest community or association's legal name;
2689		-	81.26 (2) the common interest community or association's federal employer identification
2690		-	81.27number;
2691		-	81.28 (3) the common interest community or association's telephone number, email address,
2692		-	81.29and mailing and physical address;
2693		-	81.30 (4) the current board officers' full names, titles, email addresses, and other contact
2694		-	81.31information;
	2577	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 78.1price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is
	2578	+	78.2unlimited or free of charge, the advertising or sign must clearly indicate that the electrical
	2579	+	78.3energy is unlimited or free of charge in lieu of the unit price.
	2580	+	78.4 (b) If more than one electrical energy unit price may apply over the duration of a single
	2581	+	78.5transaction or sale to the general public, the terms and conditions that determine each unit
	2582	+	78.6price and the times each unit price apply must be clearly displayed.
	2583	+	78.7 (c) For a fixed service application, the following information must be conspicuously
	2584	+	78.8displayed or posted:
	2585	+	78.9 (1) the level of electric vehicle service, expressed as the nominal power transfer; and
	2586	+	78.10 (2) the type of electrical energy transfer.
	2587	+	78.11 (d) For a variable service application, the following information must be conspicuously
	2588	+	78.12displayed or posted:
	2589	+	78.13 (1) the type of delivery;
	2590	+	78.14 (2) the minimum and maximum power transfer that may occur during a transaction,
	2591	+	78.15including whether service may be reduced to zero;
	2592	+	78.16 (3) the conditions under which a variation in electrical energy transfer occurs; and
	2593	+	78.17 (4) the type of electrical energy transfer.
	2594	+	78.18 (e) If a fee is assessed for other services in direct connection with the fueling of the
	2595	+	78.19vehicle, including but not limited to a fee based on time measurement or a fixed fee, the
	2596	+	78.20additional fee must be included on all street signs or other advertising.
	2597	+	78.21Sec. 9. [325F.079] SALE OF NITROUS OXIDE.
	2598	+	78.22 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
	2599	+	78.23the meanings given.
	2600	+	78.24 (b) "Nitrous oxide" means a canister containing nitrous oxide that is sold by a retailer.
	2601	+	78.25 (c) "Retailer" means a person, located within Minnesota or elsewhere, engaged in the
	2602	+	78.26business of selling or offering for sale nitrous oxide to a consumer in Minnesota.
	2603	+	78.27 Subd. 2.Prohibition.A retailer is prohibited from selling or offering for sale nitrous
	2604	+	78.28oxide to a consumer in Minnesota.
	2605	+	78.29 Subd. 3.Exceptions.Nitrous oxide may be purchased for the following reasons:
	2606	+	78Article 5 Sec. 9.
	2607	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 79.1 (1) care or treatment of a disease, condition, or injury by a licensed medical or dental
	2608	+	79.2practitioner;
	2609	+	79.3 (2) possession and use by a manufacturer as part of a manufacturing process or industrial
	2610	+	79.4operation;
	2611	+	79.5 (3) possession, use, or sale as a propellant in food preparation for restaurant, food service,
	2612	+	79.6or houseware products; or
	2613	+	79.7 (4) possession, use, or sale of nitrous oxide for automative purposes.
	2614	+	79.8 Subd. 4.Violation.A person who violates this section is guilty of a misdemeanor.
	2615	+	79.9 Sec. 10. [325F.677] AVAILABILITY OF WATER AT PLACES OF
	2616	+	79.10ENTERTAINMENT.
	2617	+	79.11 Subdivision 1.Definition.For purposes of this section, "place of entertainment" has the
	2618	+	79.12meaning given in section 325F.676, subdivision 1, paragraph (h).
	2619	+	79.13 Subd. 2.Available water requirement.When occupancy exceeds 100 attendees and
	2620	+	79.14where an attendee must have a ticket in order to access the place of entertainment, a place
	2621	+	79.15of entertainment must provide attendees with access to potable water by:
	2622	+	79.16 (1) providing water at no cost to the attendees;
	2623	+	79.17 (2) allowing attendees to bring factory-sealed bottled water into the place of
	2624	+	79.18entertainment; or
	2625	+	79.19 (3) allowing attendees to bring an empty water bottle to the place of entertainment and
	2626	+	79.20providing attendees with access to potable water to fill the bottle. A place of entertainment
	2627	+	79.21may prohibit certain types and sizes of water bottles in order to protect the safety of others.
	2628	+	79.22 Subd. 3.Exceptions.An exhibit, gallery, or presentation space where beverages are
	2629	+	79.23prohibited is not required to allow water into the exhibit, gallery, or presentation space if
	2630	+	79.24water is available at no cost in an accessible location outside of the museum exhibit gallery
	2631	+	79.25or presentation space.
	2632	+	79.26Sec. 11. Minnesota Statutes 2024, section 325G.24, subdivision 2, is amended to read:
	2633	+	79.27 Subd. 2.Right of member unilateral termination.(a) Any person who has elected to
	2634	+	79.28become a member of a club may unilaterally terminate such membership, in the person's
	2635	+	79.29exclusive discretion, by giving notice of termination at any time.
	2636	+	79Article 5 Sec. 11.
	2637	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 80.1 (b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
	2638	+	80.2and postage prepaid.
	2639	+	80.3 (c) A club must not impose a termination fee or any other liability on the member for
	2640	+	80.4termination under this subdivision.
	2641	+	80.5 (d) Termination under this subdivision is effective at the end of the membership term
	2642	+	80.6in which the member provides the notice of termination. If membership is at-will without
	2643	+	80.7a defined membership term, then termination under this subdivision is effective immediately,
	2644	+	80.8unless no later than 30 days after the date of a verified consumer's notice of termination. If
	2645	+	80.9the member indicates a future effective date of termination, in which event beyond those
	2646	+	80.10set forth herein, the date indicated by the member is the effective date of termination.
	2647	+	80.11 (e) If a member provides notice of termination at any time before midnight of the third
	2648	+	80.12business day following the date on which membership was attained, the club must treat the
	2649	+	80.13notice as a notice of cancellation under subdivision 1, unless the member specifically
	2650	+	80.14provides for a future termination effective date.
	2651	+	80.15 EFFECTIVE DATE.This section is effective July 1, 2025, and applies to contracts
	2652	+	80.16entered into, modified, or renewed on or after that date.
	2653	+	80.17Sec. 12. [515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
	2654	+	80.18 Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this
	2655	+	80.19subdivision have the meanings given.
	2656	+	80.20 (b) "Association" has the meaning given in section 515B.1-103, clause (4).
	2657	+	80.21 (c) "Common interest community" has the meaning given in section 515B.1-103, clause
	2658	+	80.22(10).
	2659	+	80.23 (d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
	2660	+	80.24 (e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
	2661	+	80.25 (f) "Unit" has the meaning given in section 515B.1-103, clause (35).
	2662	+	80.26 Subd. 2.Establishment.The Department of Commerce must establish a register that
	2663	+	80.27contains the information required under subdivision 3 regarding each residential common
	2664	+	80.28interest community or similar association governed by this chapter, operating within
	2665	+	80.29Minnesota.
	2666	+	80Article 5 Sec. 12.
	2667	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 81.1 Subd. 3.Registration required.(a) A residential common interest community or similar
	2668	+	81.2association governed by this chapter must annually register under this section if the common
	2669	+	81.3interest community or similar association owns any number of units in Minnesota.
	2670	+	81.4 (b) A residential common interest community or similar association governed by this
	2671	+	81.5chapter must provide the following information to the department when registering:
	2672	+	81.6 (1) the common interest community or association's legal name;
	2673	+	81.7 (2) the common interest community or association's federal employer identification
	2674	+	81.8number;
	2675	+	81.9 (3) the common interest community or association's telephone number, email address,
	2676	+	81.10and mailing and physical address;
	2677	+	81.11 (4) the current board officers' full names, titles, email addresses, and other contact
	2678	+	81.12information;
	2679	+	81.13 (5) a copy of the common interest community or association's governing documents,
	2680	+	81.14including but not limited to declarations, bylaws, rules, and any amendments;
	2681	+	81.15 (6) the total number of parcels in the common interest community or association; and
	2682	+	81.16 (7) the total amount of revenues and expenses from the common interest community or
	2683	+	81.17association's annual budget.
	2684	+	81.18 (c) For residential common interest communities or associations governed by this chapter
	2685	+	81.19that are under the control of a master developer, the register must include:
	2686	+	81.20 (1) the master developer's legal name;
	2687	+	81.21 (2) the master developer's telephone number, email address, and mailing and physical
	2688	+	81.22address;
	2689	+	81.23 (3) the master developer's federal employer identification number;
	2690	+	81.24 (4) the total number of parcels owned by the master developer on the date of reporting;
	2691	+	81.25 (5) the master developer's master declaration required under section 515B.2-121;
	2692	+	81.26 (6) the master developer's anticipated timeline to transfer control to the owners; and
	2693	+	81.27 (7) how the master developer transfers control to the owners.
	2694	+	81.28 (d) Residential common interest communities or associations governed by this chapter
	2695	+	81.29that contract with a property management company must also provide the following
	2696	+	81.30information:
2695	2697		81Article 5 Sec. 12.
2696		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 82.1 (5) a copy of the common interest community or association's governing documents,
2697		-	82.2including but not limited to declarations, bylaws, rules, and any amendments;
2698		-	82.3 (6) the total number of parcels in the common interest community or association; and
2699		-	82.4 (7) the total amount of revenues and expenses from the common interest community or
2700		-	82.5association's annual budget.
2701		-	82.6 (c) For residential common interest communities or associations governed by this chapter
2702		-	82.7that are under the control of a master developer, the register must include:
2703		-	82.8 (1) the master developer's legal name;
2704		-	82.9 (2) the master developer's telephone number, email address, and mailing and physical
2705		-	82.10address;
2706		-	82.11 (3) the master developer's federal employer identification number;
2707		-	82.12 (4) the total number of parcels owned by the master developer on the date of reporting;
2708		-	82.13 (5) the master developer's master declaration required under section 515B.2-121;
2709		-	82.14 (6) the master developer's anticipated timeline to transfer control to the owners; and
2710		-	82.15 (7) how the master developer transfers control to the owners.
2711		-	82.16 (d) Residential common interest communities or associations governed by this chapter
2712		-	82.17that contract with a property management company must also provide the following
2713		-	82.18information:
2714		-	82.19 (1) the property management company's legal name;
2715		-	82.20 (2) the property management company's telephone number, email address, and mailing
2716		-	82.21and physical address; and
2717		-	82.22 (3) a brief description of the property management company's legal obligations under
2718		-	82.23the terms of the contract.
2719		-	82.24 Subd. 4.Registration fee.Each residential common interest community or association
2720		-	82.25must pay an annual registration fee of $55 to support the register established in subdivision
2721		-	82.262 and the common interest community ombudsperson under section 45.0137.
2722		-	82.27 Subd. 5.Data classification.Data collected, created, received, or maintained pursuant
2723		-	82.28to this section is private data on individuals, as defined in section 13.02, subdivision 12.
2724		-	82.29 Subd. 6.Notice requirement.The Department of Commerce must provide notice to a
2725		-	82.30common interest community or association that fails to register. The common interest
2726		-	82Article 5 Sec. 12.
2727		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 83.1community or association must register as provided under this section within 60 days after
2728		-	83.2receiving the notice to register.
2729		-	83.3 EFFECTIVE DATE.This section is effective January 1, 2026.
2730		-	83.4 ARTICLE 6
2731		-	83.5 CANNABIS FINANCE POLICY
2732		-	83.6 Section 1. Minnesota Statutes 2024, section 342.17, is amended to read:
2733		-	83.7 342.17 SOCIAL EQUITY APPLICANTS.
2734		-	83.8 (a) An applicant qualifies as a social equity applicant if the applicant:
2735		-	83.9 (1) was convicted of, received a stay of adjudication under chapter 609 for, or was
2736		-	83.10adjudicated delinquent under chapter 260B of an offense involving the possession or sale
2737		-	83.11of cannabis or marijuana prior to May 1, 2023;
2738		-	83.12 (2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
2739		-	83.13involving the possession or sale of cannabis or marijuana prior to May 1, 2023;
2740		-	83.14 (3) was a dependent of an individual who was convicted of an offense involving the
2741		-	83.15possession or sale of cannabis or marijuana prior to May 1, 2023;
2742		-	83.16 (4) is a military veteran, including a service-disabled veteran, current or former member
2743		-	83.17of the national guard;
2744		-	83.18 (5) is a military veteran or current or former member of the national guard who lost
2745		-	83.19honorable status due to an offense involving the possession or sale of cannabis or marijuana;
2746		-	83.20 (6) has been a resident for the last five years of one or more subareas, such as census
2747		-	83.21tracts or neighborhoods:
2748		-	83.22 (i) that experienced a disproportionately large amount of cannabis enforcement as
2749		-	83.23determined by the study conducted by the office pursuant to section 342.04, paragraph (b),
2750		-	83.24or another report based on federal or state data on arrests or convictions;
2751		-	83.25 (ii) where the poverty rate was 20 percent or more;
2752		-	83.26 (iii) where the median family income did not exceed 80 percent of the statewide median
2753		-	83.27family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the
2754		-	83.28statewide median family income or 80 percent of the median family income for that
2755		-	83.29metropolitan area;
2756		-	83.30 (iv) where at least 20 percent of the households receive assistance through the
2757		-	83.31Supplemental Nutrition Assistance Program; or
2758		-	83Article 6 Section 1.
2759		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 84.1 (v) where the population has a high level of vulnerability according to the Centers for
2760		-	84.2Disease Control and Prevention and Agency for Toxic Substances and Disease Registry
2761		-	84.3(CDC/ATSDR) Social Vulnerability Index; or
2762		-	84.4 (7) has participated in the business operation of a farm for at least three years and
2763		-	84.5currently provides the majority of the day-to-day physical labor and management of a farm
2764		-	84.6that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year.
2765		-	84.7 (b) The qualifications described in paragraph (a) apply to each individual applicant or,
2766		-	84.8in the case of a business entity, apply to at least 65 percent of the controlling ownership of
2767		-	84.9the business entity.
2768		-	84.10Sec. 2. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
2769		-	84.11read:
2770		-	84.12 Subd. 2a.Cannabis testing facility licenses.(a) Pending an applicant's accreditation
2771		-	84.13by a laboratory accrediting organization approved by the office, the office may issue or
2772		-	84.14renew a cannabis testing facility license for an applicant that is a person, cooperative, or
2773		-	84.15business if the applicant:
2774		-	84.16 (1) submits documentation to the office demonstrating that the applicant has a signed
2775		-	84.17contract with a laboratory accreditation organization approved by the office, has scheduled
2776		-	84.18an audit, and is making progress toward accreditation by a laboratory accrediting organization
2777		-	84.19approved by the office according to the standards of the most recent edition of ISO/IEC
2778		-	84.2017025: General Requirements for the Competence of Testing and Calibration Laboratories;
2779		-	84.21 (2) passes a final site inspection conducted by the office; and
2780		-	84.22 (3) meets all other licensing requirements according to chapter 342 and Minnesota Rules.
2781		-	84.23 (b) After receiving a license under this section, a license holder may operate a cannabis
2782		-	84.24testing facility up to one year with pending accreditation status.
2783		-	84.25 (c) If, after one year, a license holder continues to have pending accreditation status, the
2784		-	84.26license holder may apply for a onetime extension to continue operations for up to six months.
2785		-	84.27The office may grant an extension under this paragraph to a license holder if the license
2786		-	84.28holder:
2787		-	84.29 (1) passes a follow-up site inspection conducted by the office;
2788		-	84.30 (2) submits an initial audit report from a laboratory accrediting organization approved
2789		-	84.31by the office; and
2790		-	84.32 (3) submits any additional information requested by the office.
2791		-	84Article 6 Sec. 2.
2792		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 85.1 (d) The office may revoke a cannabis testing facility license held by a license holder
2793		-	85.2with pending accreditation status if the office determines or has reason to believe that the
2794		-	85.3license holder:
2795		-	85.4 (1) is not making progress toward accreditation; or
2796		-	85.5 (2) has violated a cannabis testing requirement, an ownership requirement, or an
2797		-	85.6operational requirement in chapter 342 or Minnesota Rules.
2798		-	85.7 (e) The office must not issue or renew a cannabis testing facility license under this
2799		-	85.8subdivision for a license holder if the license holder's accreditation has been suspended or
2800		-	85.9revoked by a laboratory accrediting organization.
2801		-	85.10Sec. 3. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
2802		-	85.11read:
2803		-	85.12 Subd. 2b.Loss of accreditation.(a) A license holder must report loss of accreditation
2804		-	85.13to the office within 24 hours of receiving notice of the loss of accreditation.
2805		-	85.14 (b) The office must immediately revoke a license holder's license upon receiving notice
2806		-	85.15that the license holder has lost accreditation.
2807		-	85.16 ARTICLE 7
2808		-	85.17 CONSUMER PROTECTION
2809		-	85.18Section 1. Minnesota Statutes 2024, section 116.943, subdivision 1, is amended to read:
2810		-	85.19 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
2811		-	85.20the meanings given.
2812		-	85.21 (b) "Adult mattress" means a mattress other than a crib mattress or toddler mattress.
2813		-	85.22 (c) "Air care product" means a chemically formulated consumer product labeled to
2814		-	85.23indicate that the purpose of the product is to enhance or condition the indoor environment
2815		-	85.24by eliminating odors or freshening the air.
2816		-	85.25 (d) "Automotive maintenance product" means a chemically formulated consumer product
2817		-	85.26labeled to indicate that the purpose of the product is to maintain the appearance of a motor
2818		-	85.27vehicle, including products for washing, waxing, polishing, cleaning, or treating the exterior
2819		-	85.28or interior surfaces of motor vehicles. Automotive maintenance product does not include
2820		-	85.29automotive paint or paint repair products.
2821		-	85.30 (e) "Carpet or rug" means a fabric marketed or intended for use as a floor covering.
	2698	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 82.1 (1) the property management company's legal name;
	2699	+	82.2 (2) the property management company's telephone number, email address, and mailing
	2700	+	82.3and physical address; and
	2701	+	82.4 (3) a brief description of the property management company's legal obligations under
	2702	+	82.5the terms of the contract.
	2703	+	82.6 Subd. 4.Registration fee.Each residential common interest community or association
	2704	+	82.7must pay an annual registration fee of $55 to support the register established in subdivision
	2705	+	82.82 and the common interest community ombudsperson under section 45.0137.
	2706	+	82.9 Subd. 5.Data classification.Data collected, created, received, or maintained pursuant
	2707	+	82.10to this section is private data on individuals, as defined in section 13.02, subdivision 12.
	2708	+	82.11 Subd. 6.Notice requirement.The Department of Commerce must provide notice to a
	2709	+	82.12common interest community or association that fails to register. The common interest
	2710	+	82.13community or association must register as provided under this section within 60 days after
	2711	+	82.14receiving the notice to register.
	2712	+	82.15 EFFECTIVE DATE.This section is effective January 1, 2026.
	2713	+	82.16 ARTICLE 6
	2714	+	82.17 CANNABIS FINANCE POLICY
	2715	+	82.18Section 1. Minnesota Statutes 2024, section 342.17, is amended to read:
	2716	+	82.19 342.17 SOCIAL EQUITY APPLICANTS.
	2717	+	82.20 (a) An applicant qualifies as a social equity applicant if the applicant:
	2718	+	82.21 (1) was convicted of, received a stay of adjudication under chapter 609 for, or was
	2719	+	82.22adjudicated delinquent under chapter 260B of an offense involving the possession or sale
	2720	+	82.23of cannabis or marijuana prior to May 1, 2023;
	2721	+	82.24 (2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
	2722	+	82.25involving the possession or sale of cannabis or marijuana prior to May 1, 2023;
	2723	+	82.26 (3) was a dependent of an individual who was convicted of an offense involving the
	2724	+	82.27possession or sale of cannabis or marijuana prior to May 1, 2023;
	2725	+	82.28 (4) is a military veteran, including a service-disabled veteran, current or former member
	2726	+	82.29of the national guard;
	2727	+	82.30 (5) is a military veteran or current or former member of the national guard who lost
	2728	+	82.31honorable status due to an offense involving the possession or sale of cannabis or marijuana;
	2729	+	82Article 6 Section 1.
	2730	+	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
	2731	+	83.2tracts or neighborhoods:
	2732	+	83.3 (i) that experienced a disproportionately large amount of cannabis enforcement as
	2733	+	83.4determined by the study conducted by the office pursuant to section 342.04, paragraph (b),
	2734	+	83.5or another report based on federal or state data on arrests or convictions;
	2735	+	83.6 (ii) where the poverty rate was 20 percent or more;
	2736	+	83.7 (iii) where the median family income did not exceed 80 percent of the statewide median
	2737	+	83.8family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the
	2738	+	83.9statewide median family income or 80 percent of the median family income for that
	2739	+	83.10metropolitan area;
	2740	+	83.11 (iv) where at least 20 percent of the households receive assistance through the
	2741	+	83.12Supplemental Nutrition Assistance Program; or
	2742	+	83.13 (v) where the population has a high level of vulnerability according to the Centers for
	2743	+	83.14Disease Control and Prevention and Agency for Toxic Substances and Disease Registry
	2744	+	83.15(CDC/ATSDR) Social Vulnerability Index; or
	2745	+	83.16 (7) has participated in the business operation of a farm for at least three years and
	2746	+	83.17currently provides the majority of the day-to-day physical labor and management of a farm
	2747	+	83.18that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year.
	2748	+	83.19 (b) The qualifications described in paragraph (a) apply to each individual applicant or,
	2749	+	83.20in the case of a business entity, apply to at least 65 percent of the controlling ownership of
	2750	+	83.21the business entity.
	2751	+	83.22Sec. 2. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
	2752	+	83.23read:
	2753	+	83.24 Subd. 2a.Cannabis testing facility licenses.(a) Pending an applicant's accreditation
	2754	+	83.25by a laboratory accrediting organization approved by the office, the office may issue or
	2755	+	83.26renew a cannabis testing facility license for an applicant that is a person, cooperative, or
	2756	+	83.27business if the applicant:
	2757	+	83.28 (1) submits documentation to the office demonstrating that the applicant has a signed
	2758	+	83.29contract with a laboratory accreditation organization approved by the office, has scheduled
	2759	+	83.30an audit, and is making progress toward accreditation by a laboratory accrediting organization
	2760	+	83.31approved by the office according to the standards of the most recent edition of ISO/IEC
	2761	+	83.3217025: General Requirements for the Competence of Testing and Calibration Laboratories;
	2762	+	83Article 6 Sec. 2.
	2763	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 84.1 (2) passes a final site inspection conducted by the office; and
	2764	+	84.2 (3) meets all other licensing requirements according to chapter 342 and Minnesota Rules.
	2765	+	84.3 (b) After receiving a license under this section, a license holder may operate a cannabis
	2766	+	84.4testing facility up to one year with pending accreditation status.
	2767	+	84.5 (c) If, after one year, a license holder continues to have pending accreditation status, the
	2768	+	84.6license holder may apply for a onetime extension to continue operations for up to six months.
	2769	+	84.7The office may grant an extension under this paragraph to a license holder if the license
	2770	+	84.8holder:
	2771	+	84.9 (1) passes a follow-up site inspection conducted by the office;
	2772	+	84.10 (2) submits an initial audit report from a laboratory accrediting organization approved
	2773	+	84.11by the office; and
	2774	+	84.12 (3) submits any additional information requested by the office.
	2775	+	84.13 (d) The office may revoke a cannabis testing facility license held by a license holder
	2776	+	84.14with pending accreditation status if the office determines or has reason to believe that the
	2777	+	84.15license holder:
	2778	+	84.16 (1) is not making progress toward accreditation; or
	2779	+	84.17 (2) has violated a cannabis testing requirement, an ownership requirement, or an
	2780	+	84.18operational requirement in chapter 342 or Minnesota Rules.
	2781	+	84.19 (e) The office must not issue or renew a cannabis testing facility license under this
	2782	+	84.20subdivision for a license holder if the license holder's accreditation has been suspended or
	2783	+	84.21revoked by a laboratory accrediting organization.
	2784	+	84.22Sec. 3. Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
	2785	+	84.23read:
	2786	+	84.24 Subd. 2b.Loss of accreditation.(a) A license holder must report loss of accreditation
	2787	+	84.25to the office within 24 hours of receiving notice of the loss of accreditation.
	2788	+	84.26 (b) The office must immediately revoke a license holder's license upon receiving notice
	2789	+	84.27that the license holder has lost accreditation.
	2790	+	84Article 6 Sec. 3.
	2791	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 85.1 ARTICLE 7
	2792	+	85.2 CONSUMER PROTECTION
	2793	+	85.3 Section 1. Minnesota Statutes 2024, section 116.943, subdivision 1, is amended to read:
	2794	+	85.4 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
	2795	+	85.5the meanings given.
	2796	+	85.6 (b) "Adult mattress" means a mattress other than a crib mattress or toddler mattress.
	2797	+	85.7 (c) "Air care product" means a chemically formulated consumer product labeled to
	2798	+	85.8indicate that the purpose of the product is to enhance or condition the indoor environment
	2799	+	85.9by eliminating odors or freshening the air.
	2800	+	85.10 (d) "Automotive maintenance product" means a chemically formulated consumer product
	2801	+	85.11labeled to indicate that the purpose of the product is to maintain the appearance of a motor
	2802	+	85.12vehicle, including products for washing, waxing, polishing, cleaning, or treating the exterior
	2803	+	85.13or interior surfaces of motor vehicles. Automotive maintenance product does not include
	2804	+	85.14automotive paint or paint repair products.
	2805	+	85.15 (e) "Carpet or rug" means a fabric marketed or intended for use as a floor covering.
	2806	+	85.16 (f) "Cleaning product" means a finished product used primarily for domestic, commercial,
	2807	+	85.17or institutional cleaning purposes, including but not limited to an air care product, an
	2808	+	85.18automotive maintenance product, a general cleaning product, or a polish or floor maintenance
	2809	+	85.19product.
	2810	+	85.20 (g) "Commissioner" means the commissioner of the Pollution Control Agency.
	2811	+	85.21 (h) "Cookware" means durable houseware items used to prepare, dispense, or store food,
	2812	+	85.22foodstuffs, or beverages. Cookware includes but is not limited to pots, pans, skillets, grills,
	2813	+	85.23baking sheets, baking molds, trays, bowls, and cooking utensils.
	2814	+	85.24 (i) "Cosmetic" means articles, excluding soap:
	2815	+	85.25 (1) intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise
	2816	+	85.26applied to the human body or any part thereof for the purpose of cleansing, beautifying,
	2817	+	85.27promoting attractiveness, or altering the appearance; and
	2818	+	85.28 (2) intended for use as a component of any such article.
	2819	+	85.29 (j) "Currently unavoidable use" means a use of PFAS that the commissioner has
	2820	+	85.30determined by rule under this section to be essential for health, safety, or the functioning
	2821	+	85.31of society and for which alternatives are not reasonably available.
2822	2822		85Article 7 Section 1.
2823		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 86.1 (f) "~~Cleaning product~~" means a ~~finished product used primarily for domestic,~~ ~~commercial,~~
2824		-	86.~~2or institutional cleaning purposes~~, including but not limited to ~~an air care product,~~ an
2825		-	86.~~3automotive maintenance product,~~ a ~~general cleaning product, or a polish or floor maintenance~~
2826		-	86.4product.
2827		-	86.~~5 (g) "Commissioner" means the commissioner of the Pollution Control Agency~~.
2828		-	86.6 (h) "~~Cookware~~" means ~~durable houseware items used to prepare, dispense,~~ or ~~store food,~~
2829		-	86.~~7foodstuffs, or beverages.~~ ~~Cookware includes but is not limited to pots, pans, skillets, grills,~~
2830		-	86.~~8baking sheets,~~ ~~baking molds,~~ ~~trays, bowls,~~ ~~and cooking utensils.~~
2831		-	86.~~9 (i) "Cosmetic" means articles,~~ ~~excluding soap:~~
2832		-	86.~~10 (1) intended to be rubbed,~~ ~~poured, sprinkled,~~ ~~or sprayed on, introduced into, or otherwise~~
2833		-	86.~~11applied to the human body or any part thereof for the purpose of cleansing, beautifying,~~
2834		-	86.~~12promoting attractiveness~~, or ~~altering the appearance~~; ~~and~~
2835		-	86.~~13 (2) intended for use as a component of any such article.~~
2836		-	86.~~14 (j) "Currently~~ ~~unavoidable use"~~ ~~means a use of PFAS that the commissioner has~~
2837		-	86.~~15determined by rule under this section to be essential for health~~, ~~safety, or the functioning~~
2838		-	86.~~16of society and for which alternatives are not reasonably available.~~
2839		-	86.~~17 (k) "Fabric~~ ~~treatment" means~~ a ~~substance applied to fabric to give the fabric one or more~~
2840		-	86.~~18characteristics, including but not limited to stain resistance~~ or ~~water resistance~~.
2841		-	86.19 (l) ~~"Intentionally added" means PFAS deliberately added during the manufacture of a~~
2842		-	86.~~20product where the continued presence of PFAS is desired in the final product or one of the~~
2843		-	86.~~21product's components to perform a specific function.~~
2844		-	86.22 (m) ~~"Juvenile product"~~ ~~means a product designed or marketed~~ for ~~use by infants and~~
2845		-	86.~~23children under 12 years of age:~~
2846		-	86.24 (1) ~~including but not limited to a baby~~ or ~~toddler foam pillow; bassinet; bedside sleeper;~~
2847		-	86.~~25booster seat;~~ ~~changing pad;~~ ~~child restraint system~~ for ~~use~~ in ~~motor vehicles and aircraft;~~
2848		-	86.~~26co-sleeper; crib mattress;~~ ~~highchair; highchair pad;~~ ~~infant bouncer;~~ ~~infant carrier;~~ ~~infant~~
2849		-	86.~~27seat; infant sleep positioner;~~ ~~infant swing;~~ ~~infant travel bed;~~ ~~infant walker;~~ ~~nap cot;~~ ~~nursing~~
2850		-	86.~~28pad; nursing pillow;~~ ~~play mat; playpen; play yard; polyurethane foam mat, pad,~~ or ~~pillow;~~
2851		-	86.~~29portable foam nap mat;~~ ~~portable infant sleeper;~~ ~~portable hook-on~~ ~~chair; soft-sided~~ ~~portable~~
2852		-	86.~~30crib; stroller;~~ ~~and toddler mattress;~~ ~~and~~
2853		-	86.31 (2) ~~not including a children's electronic product such as a personal computer~~, ~~audio and~~
2854		-	86.~~32video equipment~~, ~~calculator~~, ~~wireless phone, game console, handheld device incorporating~~
	2823	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 86.1 (k) "Fabric treatment" means a substance applied to fabric to give the fabric one or more
	2824	+	86.2characteristics, including but not limited to stain resistance or water resistance.
	2825	+	86.3 (l) "Intentionally added" means PFAS deliberately added during the manufacture of a
	2826	+	86.4product where the continued presence of PFAS is desired in the final product or one of the
	2827	+	86.5product's components to perform a specific function.
	2828	+	86.6 (m) "Juvenile product" means a product designed or marketed for use by infants and
	2829	+	86.7children under 12 years of age:
	2830	+	86.8 (1) including but not limited to a baby or toddler foam pillow; bassinet; bedside sleeper;
	2831	+	86.9booster seat; changing pad; child restraint system for use in motor vehicles and aircraft;
	2832	+	86.10co-sleeper; crib mattress; highchair; highchair pad; infant bouncer; infant carrier; infant
	2833	+	86.11seat; infant sleep positioner; infant swing; infant travel bed; infant walker; nap cot; nursing
	2834	+	86.12pad; nursing pillow; play mat; playpen; play yard; polyurethane foam mat, pad, or pillow;
	2835	+	86.13portable foam nap mat; portable infant sleeper; portable hook-on chair; soft-sided portable
	2836	+	86.14crib; stroller; and toddler mattress; and
	2837	+	86.15 (2) not including a children's electronic product such as a personal computer, audio and
	2838	+	86.16video equipment, calculator, wireless phone, game console, handheld device incorporating
	2839	+	86.17a video screen, or any associated peripheral such as a mouse, keyboard, power supply unit,
	2840	+	86.18or power cord; or an adult mattress.; and
	2841	+	86.19 (3) not including:
	2842	+	86.20 (i) an off-highway vehicle made for children;
	2843	+	86.21 (ii) an all-terrain vehicle made for children;
	2844	+	86.22 (iii) an off-highway motorcycle made for children;
	2845	+	86.23 (iv) a snowmobile made for children;
	2846	+	86.24 (v) an electric-assisted bicycle made for children; or
	2847	+	86.25 (vi) a replacement part for a vehicle described in items (i) to (v).
	2848	+	86.26 (n) "Manufacturer" means the person that creates or produces a product or whose brand
	2849	+	86.27name is affixed to the product. In the case of a product imported into the United States,
	2850	+	86.28manufacturer includes the importer or first domestic distributor of the product if the person
	2851	+	86.29that manufactured or assembled the product or whose brand name is affixed to the product
	2852	+	86.30does not have a presence in the United States.
	2853	+	86.31 (o) "Medical device" has the meaning given "device" under United States Code, title
	2854	+	86.3221, section 321, subsection (h).
2855	2855		86Article 7 Section 1.
2856		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 87.~~1a video screen,~~ or ~~any associated peripheral such as~~ a ~~mouse, keyboard, power supply unit,~~
2857		-	87.~~2or power cord;~~ ~~or an adult mattress~~.~~; and~~
2858		-	87.3 (3) ~~not including:~~
2859		-	87.~~4 (i) an off-highway~~ ~~vehicle made for children;~~
2860		-	87.~~5 (ii) an all-terrain~~ ~~vehicle made~~ for ~~children;~~
2861		-	87.~~6 (iii) an off-highway motorcycle made for children;~~
2862		-	87.7 (iv) a ~~snowmobile made for children;~~
2863		-	87.~~8 (v) an electric-assisted~~ ~~bicycle made for children;~~ or
2864		-	87.9 (vi) a ~~replacement part for a vehicle described in items (i)~~ to ~~(v).~~
2865		-	87.~~10 (n) "Manufacturer" means the person that creates~~ or ~~produces a product or whose brand~~
2866		-	87.~~11name is affixed to the product~~. ~~In the case of a product imported into the United States,~~
2867		-	87.~~12manufacturer includes the importer~~ or ~~first domestic distributor of the product if the person~~
2868		-	87.~~13that manufactured or assembled the product or whose brand name~~ is ~~affixed~~ to ~~the product~~
2869		-	87.~~14does not have a presence in the United States~~.
2870		-	87.15 (o) "~~Medical device~~" ~~has the meaning given "device" under United States Code,~~ ~~title~~
2871		-	87.~~1621~~, ~~section 321~~, ~~subsection (h).~~
2872		-	87.~~17 (p) "Perfluoroalkyl~~ and ~~polyfluoroalkyl substances" or "PFAS" means a class of~~
2873		-	87.~~18fluorinated organic chemicals containing at least one fully fluorinated carbon atom.~~
2874		-	87.~~19 (q) "Product" means an item manufactured~~, ~~assembled, packaged~~, or ~~otherwise prepared~~
2875		-	87.~~20for sale to consumers, including but not limited to its product components, sold or distributed~~
2876		-	87.~~21for personal,~~ ~~residential, commercial,~~ ~~or industrial use,~~ ~~including for use in making other~~
2877		-	87.~~22products~~.
2878		-	87.23 (r) ~~"Product component"~~ ~~means an identifiable component of~~ a ~~product~~, ~~regardless of~~
2879		-	87.~~24whether~~ the ~~manufacturer of~~ the product ~~is the manufacturer of the component.~~
2880		-	87.~~25 (s) "Ski wax" means a lubricant applied to the bottom of snow runners, including but~~
2881		-	87.~~26not limited to skis and snowboards, to improve their grip~~ or ~~glide properties. Ski wax includes~~
2882		-	87.~~27related tuning~~ products.
2883		-	87.28 (t) ~~"Textile" means an item made in whole or part from a natural or synthetic fiber, yarn,~~
2884		-	87.~~29or fabric.~~ ~~Textile includes but is not limited to leather, cotton, silk, jute, hemp, wool, viscose,~~
2885		-	87.~~30nylon, and polyester.~~
2886		-	87~~Article 7 Section 1.~~
2887		-	~~S2216-~~2 ~~2nd Engrossment~~~~SF2216 REVISOR RSI 88.1 (u) "Textile furnishings" means textile goods of a type customarily used in households~~
2888		-	88.~~2and businesses,~~ ~~including but not limited to draperies, floor coverings, furnishings, bedding,~~
2889		-	88.~~3towels, and tablecloths.~~
2890		-	88.4 (v) ~~"Upholstered furniture" means an article of furniture that is designed to be used for~~
2891		-	88.~~5sitting, resting,~~ or ~~reclining and that is wholly or partly stuffed or filled with any filling~~
2892		-	88.~~6material~~.
2893		-	88.~~7 EFFECTIVE DATE.This section is effective~~ the ~~day following final enactment.~~
2894		-	88.~~8 Sec.~~ ~~2. Minnesota Statutes 2024,~~ ~~section 116.943, subdivision 5,~~ ~~is amended to read:~~
2895		-	88.~~9 Subd.~~ ~~5.Prohibitions.(a) Beginning January 1, 2025,~~ a person ~~may not sell,~~ ~~offer for~~
2896		-	88.~~10sale, or distribute for sale in this state the following products if the~~ product ~~contains~~
2897		-	88.~~11intentionally added PFAS:~~
2898		-	88.~~12 (1) carpets~~ or ~~rugs;~~
2899		-	88.~~13 (2) cleaning products;~~
2900		-	88.~~14 (3) cookware;~~
2901		-	88.~~15 (4) cosmetics;~~
2902		-	88.~~16 (5) dental floss;~~
2903		-	88.~~17 (6) fabric treatments;~~
2904		-	88.18 (7) ~~juvenile products;~~
2905		-	88.~~19 (8) menstruation products;~~
2906		-	88.~~20 (9) textile furnishings;~~
2907		-	88.~~21 (10) ski wax;~~ or
2908		-	88.~~22 (11) upholstered furniture~~.
2909		-	88.~~23 (b) Paragraph (a) does~~ not ~~prohibit~~ the ~~sale, offering for sale, or distribution~~ of a product
2910		-	88.~~24that contains intentionally added PFAS only~~ in ~~internal components that do not come into~~
2911		-	88.~~25direct contact with a person's skin~~ or ~~mouth during reasonably foreseeable use or abuse of~~
2912		-	88.~~26the product.~~
2913		-	88.~~27 (b) (c) The commissioner may by rule identify additional products by category~~ or ~~use~~
2914		-	88.~~28that may not be sold,~~ ~~offered for sale, or distributed for sale in this state if they contain~~
2915		-	88.~~29intentionally added PFAS and designate~~ effective ~~dates~~. ~~A prohibition adopted under this~~
2916		-	88.~~30paragraph must be effective no earlier than January~~ 1, ~~2025, and no later than January 1,~~
2917		-	88~~Article 7 Sec. 2.~~
2918		-	~~S2216-2 2nd Engrossment~~~~SF2216 REVISOR RSI 89.12032. The commissioner must prioritize the prohibition of the sale of product categories~~
2919		-	89.~~2that, in~~ the ~~commissioner's judgment, are most likely to contaminate~~ or ~~harm the state's~~
2920		-	89.~~3environment and natural resources if they contain intentionally added PFAS~~.
2921		-	89.4 (c) ~~(d) Beginning January 1, 2032, a person may not sell, offer for sale, or distribute for~~
2922		-	89.~~5sale in this state any product that contains intentionally added PFAS, unless the commissioner~~
2923		-	89.~~6has determined by rule that the use of PFAS in the product is a currently unavoidable use.~~
2924		-	89.~~7The commissioner may specify specific products or product categories for which the~~
2925		-	89.~~8commissioner has determined the use of PFAS is a currently unavoidable use. The~~
2926		-	89.~~9commissioner may not determine that the use of PFAS in a product is a currently unavoidable~~
2927		-	89.~~10use if the product is listed in paragraph~~ (a).
2928		-	89.11 (d) ~~(e) The commissioner may not take action under paragraph (b) (c) or (c) (d) with~~
2929		-	89.~~12respect to a pesticide~~, ~~as defined under chapter 18B~~, ~~a fertilizer,~~ ~~an agricultural liming~~
2930		-	89.~~13material, a plant amendment,~~ ~~or a soil amendment as defined under chapter 18C, unless the~~
2931		-	89.~~14commissioner of agriculture approves the action.~~
2932		-	89.~~15 EFFECTIVE DATE.This section is effective the day following final enactment.~~
2933		-	89.~~16Sec. 3. Minnesota Statutes 2024~~, ~~section 325E.3892~~, ~~subdivision 1, is amended to read:~~
2934		-	89.~~17 Subdivision 1.Definitions.~~(a) ~~For purposes of this section, the following terms have~~
2935		-	89.~~18the meanings given.~~
2936		-	89.19 (b) ~~"Covered product"~~ ~~means any of the following products or product components:~~
2937		-	89.20 (1) ~~jewelry;~~
2938		-	89.21 (2) ~~toys;~~
2939		-	89.~~22 (3) cosmetics and personal care products;~~
2940		-	89.~~23 (~~4~~) puzzles~~, ~~board games~~, ~~card games~~, ~~and similar games;~~
2941		-	89.24 (5) ~~play sets and play structures;~~
2942		-	89.~~25 (6) outdoor games;~~
2943		-	89.26 (7) ~~school supplies,~~ ~~except ink pens and mechanical pencils~~;
2944		-	89.27 (8) ~~pots and pans;~~
2945		-	89.28 (9) ~~cups, bowls,~~ ~~and other food containers, except where cadmium is contained in a~~
2946		-	89.~~29vitreous enamel in a nonfood contact surface;~~
2947		-	89.~~30 (10) craft supplies and jewelry-making supplies;~~
2948		-	89Article 7 Sec. 3.
2949		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI 90.1 (11) ~~chalk, crayons,~~ ~~children's paints,~~ ~~and other art supplies except professional artist~~
2950		-	90.~~2materials, including but not limited to oil-based paints, water-based paints, paints, pastels,~~
2951		-	90.~~3pigments~~, ~~ceramic glazes~~, ~~and markers;~~
2952		-	90.~~4 (12) fidget spinners~~;
2953		-	90.5 (13) ~~costumes, costume accessories,~~ ~~and children's and seasonal party supplies;~~
2954		-	90.~~6 (14) keys~~, ~~key chains, and key rings; and~~
2955		-	90.~~7 (15) clothing,~~ ~~footwear, headwear~~, and ~~accessories.~~
2956		-	90.~~8 (c) "Pastels" means a crayon composed of powdered pigments bonded with gum or resin~~.
	2856	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 87.1 (p) "Perfluoroalkyl and polyfluoroalkyl substances" or "PFAS" means a class of
	2857	+	87.2fluorinated organic chemicals containing at least one fully fluorinated carbon atom.
	2858	+	87.3 (q) "Product" means an item manufactured, assembled, packaged, or otherwise prepared
	2859	+	87.4for sale to consumers, including but not limited to its product components, sold or distributed
	2860	+	87.5for personal, residential, commercial, or industrial use, including for use in making other
	2861	+	87.6products.
	2862	+	87.7 (r) "Product component" means an identifiable component of a product, regardless of
	2863	+	87.8whether the manufacturer of the product is the manufacturer of the component.
	2864	+	87.9 (s) "Ski wax" means a lubricant applied to the bottom of snow runners, including but
	2865	+	87.10not limited to skis and snowboards, to improve their grip or glide properties. Ski wax includes
	2866	+	87.11related tuning products.
	2867	+	87.12 (t) "Textile" means an item made in whole or part from a natural or synthetic fiber, yarn,
	2868	+	87.13or fabric. Textile includes but is not limited to leather, cotton, silk, jute, hemp, wool, viscose,
	2869	+	87.14nylon, and polyester.
	2870	+	87.15 (u) "Textile furnishings" means textile goods of a type customarily used in households
	2871	+	87.16and businesses, including but not limited to draperies, floor coverings, furnishings, bedding,
	2872	+	87.17towels, and tablecloths.
	2873	+	87.18 (v) "Upholstered furniture" means an article of furniture that is designed to be used for
	2874	+	87.19sitting, resting, or reclining and that is wholly or partly stuffed or filled with any filling
	2875	+	87.20material.
	2876	+	87.21 EFFECTIVE DATE.This section is effective the day following final enactment.
	2877	+	87.22Sec. 2. Minnesota Statutes 2024, section 116.943, subdivision 5, is amended to read:
	2878	+	87.23 Subd. 5.Prohibitions.(a) Beginning January 1, 2025, a person may not sell, offer for
	2879	+	87.24sale, or distribute for sale in this state the following products if the product contains
	2880	+	87.25intentionally added PFAS:
	2881	+	87.26 (1) carpets or rugs;
	2882	+	87.27 (2) cleaning products;
	2883	+	87.28 (3) cookware;
	2884	+	87.29 (4) cosmetics;
	2885	+	87.30 (5) dental floss;
	2886	+	87.31 (6) fabric treatments;
	2887	+	87Article 7 Sec. 2.
	2888	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 88.1 (7) juvenile products;
	2889	+	88.2 (8) menstruation products;
	2890	+	88.3 (9) textile furnishings;
	2891	+	88.4 (10) ski wax; or
	2892	+	88.5 (11) upholstered furniture.
	2893	+	88.6 (b) Paragraph (a) does not prohibit the sale, offering for sale, or distribution of a product
	2894	+	88.7that contains intentionally added PFAS only in internal components that do not come into
	2895	+	88.8direct contact with a person's skin or mouth during reasonably foreseeable use or abuse of
	2896	+	88.9the product.
	2897	+	88.10 (b) (c) The commissioner may by rule identify additional products by category or use
	2898	+	88.11that may not be sold, offered for sale, or distributed for sale in this state if they contain
	2899	+	88.12intentionally added PFAS and designate effective dates. A prohibition adopted under this
	2900	+	88.13paragraph must be effective no earlier than January 1, 2025, and no later than January 1,
	2901	+	88.142032. The commissioner must prioritize the prohibition of the sale of product categories
	2902	+	88.15that, in the commissioner's judgment, are most likely to contaminate or harm the state's
	2903	+	88.16environment and natural resources if they contain intentionally added PFAS.
	2904	+	88.17 (c) (d) Beginning January 1, 2032, a person may not sell, offer for sale, or distribute for
	2905	+	88.18sale in this state any product that contains intentionally added PFAS, unless the commissioner
	2906	+	88.19has determined by rule that the use of PFAS in the product is a currently unavoidable use.
	2907	+	88.20The commissioner may specify specific products or product categories for which the
	2908	+	88.21commissioner has determined the use of PFAS is a currently unavoidable use. The
	2909	+	88.22commissioner may not determine that the use of PFAS in a product is a currently unavoidable
	2910	+	88.23use if the product is listed in paragraph (a).
	2911	+	88.24 (d) (e) The commissioner may not take action under paragraph (b) (c) or (c) (d) with
	2912	+	88.25respect to a pesticide, as defined under chapter 18B, a fertilizer, an agricultural liming
	2913	+	88.26material, a plant amendment, or a soil amendment as defined under chapter 18C, unless the
	2914	+	88.27commissioner of agriculture approves the action.
	2915	+	88.28 EFFECTIVE DATE.This section is effective the day following final enactment.
	2916	+	88.29Sec. 3. Minnesota Statutes 2024, section 325E.3892, subdivision 1, is amended to read:
	2917	+	88.30 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
	2918	+	88.31the meanings given.
	2919	+	88.32 (b) "Covered product" means any of the following products or product components:
	2920	+	88Article 7 Sec. 3.
	2921	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 89.1 (1) jewelry;
	2922	+	89.2 (2) toys;
	2923	+	89.3 (3) cosmetics and personal care products;
	2924	+	89.4 (4) puzzles, board games, card games, and similar games;
	2925	+	89.5 (5) play sets and play structures;
	2926	+	89.6 (6) outdoor games;
	2927	+	89.7 (7) school supplies, except ink pens and mechanical pencils;
	2928	+	89.8 (8) pots and pans;
	2929	+	89.9 (9) cups, bowls, and other food containers;
	2930	+	89.10 (10) craft supplies and jewelry-making supplies;
	2931	+	89.11 (11) chalk, crayons, children's paints, and other art supplies except professional artist
	2932	+	89.12materials, including but not limited to oil-based paints, water-based paints, paints, pastels,
	2933	+	89.13pigments, ceramic glazes, and markers;
	2934	+	89.14 (12) fidget spinners;
	2935	+	89.15 (13) costumes, costume accessories, and children's and seasonal party supplies;
	2936	+	89.16 (14) keys, key chains, and key rings; and
	2937	+	89.17 (15) clothing, footwear, headwear, and accessories.
	2938	+	89.18 (c) "Pastels" means a crayon composed of powdered pigments bonded with gum or resin.
	2939	+	89.19 EFFECTIVE DATE.This section is effective the day following final enactment.
	2940	+	89.20Sec. 4. Minnesota Statutes 2024, section 325E.3892, subdivision 2, is amended to read:
	2941	+	89.21 Subd. 2.Prohibition.(a) A person must not import, manufacture, sell, hold for sale, or
	2942	+	89.22distribute or offer for use in this state any covered product containing:
	2943	+	89.23 (1) lead at more than 0.009 percent by total weight (90 parts per million); or
	2944	+	89.24 (2) cadmium at more than 0.0075 percent by total weight (75 parts per million).
	2945	+	89.25 (b) This section does not apply to:
	2946	+	89.26 (1) covered products containing lead or cadmium, or both, when regulation is preempted
	2947	+	89.27by federal law.; or
	2948	+	89Article 7 Sec. 4.
	2949	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 90.1 (2) covered products that contain lead only in solder used in internal components or in
	2950	+	90.2pen tips so long as:
	2951	+	90.3 (i) the product is not imported, manufactured, sold, held for sale, distributed, or offered
	2952	+	90.4for use in this state after July 1, 2028; and
	2953	+	90.5 (ii) the manufacturer of the product submits biennial reports to the commissioner of the
	2954	+	90.6Pollution Control Agency that explain the barriers to removing lead from the product,
	2955	+	90.7progress towards adoption of lead-free alternatives, and a timeline to fully adopt a lead-free
	2956	+	90.8alternative.
2957	2957		90.9 EFFECTIVE DATE.This section is effective the day following final enactment.
2958		-	90.10Sec. 4. Minnesota Statutes 2024, section 325E.3892, subdivision 2, is amended to read:
2959		-	90.11 Subd. 2.Prohibition.(a) A person must not import, manufacture, sell, hold for sale, or
2960		-	90.12distribute or offer for use in this state any covered product containing:
2961		-	90.13 (1) lead at more than 0.009 percent by total weight (90 parts per million); or
2962		-	90.14 (2) cadmium at more than 0.0075 percent by total weight (75 parts per million).
2963		-	90.15 (b) This section does not apply to:
2964		-	90.16 (1) covered products containing lead or cadmium, or both, when regulation is preempted
2965		-	90.17by federal law.; or
2966		-	90.18 (2) covered products that contain lead only in solder used in internal components or in
2967		-	90.19pen tips so long as:
2968		-	90.20 (i) the product is not imported, manufactured, sold, held for sale, distributed, or offered
2969		-	90.21for use in this state after July 1, 2028; and
2970		-	90.22 (ii) the manufacturer of the product submits biennial reports to the commissioner of the
2971		-	90.23Pollution Control Agency that explain the barriers to removing lead from the product,
2972		-	90.24progress towards adoption of lead-free alternatives, and a timeline to fully adopt a lead-free
2973		-	90.25alternative.
2974		-	90.26 EFFECTIVE DATE.This section is effective the day following final enactment.
2975		-	90.27Sec. 5. Minnesota Statutes 2024, section 325F.072, subdivision 3, is amended to read:
2976		-	90.28 Subd. 3.Prohibition.(a) No person, political subdivision, or state agency shall
2977		-	90.29manufacture or knowingly sell, offer for sale, distribute for sale, or distribute for use in this
	2958	+	90.10Sec. 5. Minnesota Statutes 2024, section 325F.072, subdivision 3, is amended to read:
	2959	+	90.11 Subd. 3.Prohibition.(a) No person, political subdivision, or state agency shall
	2960	+	90.12manufacture or knowingly sell, offer for sale, distribute for sale, or distribute for use in this
	2961	+	90.13state, and no person shall use in this state, class B firefighting foam containing PFAS
	2962	+	90.14chemicals.
	2963	+	90.15 (b) This subdivision does not apply to the manufacture, sale, distribution, or use of class
	2964	+	90.16B firefighting foam for which the inclusion of PFAS chemicals is required by federal law,
	2965	+	90.17including but not limited to Code of Federal Regulations, title 14, section 139.317. If a
	2966	+	90.18federal requirement to include PFAS chemicals in class B firefighting foam is revoked after
	2967	+	90.19January 1, 2024, class B firefighting foam subject to the revoked requirements is no longer
	2968	+	90.20exempt under this paragraph effective one year after the day of revocation.
	2969	+	90.21 (c) This subdivision does not apply to the manufacture, sale, distribution, or use of class
	2970	+	90.22B firefighting foam for purposes of use at an airport, as defined under section 360.013,
	2971	+	90.23subdivision 39, until the state fire marshal makes a determination that:
	2972	+	90.24 (1) the Federal Aviation Administration has provided policy guidance on the transition
	2973	+	90.25to fluorine-free firefighting foam;
	2974	+	90.26 (2) a fluorine-free firefighting foam product is included in the Federal Aviation
	2975	+	90.27Administration's Qualified Product Database; and
	2976	+	90.28 (3) a firefighting foam product included in the database under clause (2) is commercially
	2977	+	90.29available in quantities sufficient to reliably meet the requirements under Code of Federal
	2978	+	90.30Regulations, title 14, part 139.
	2979	+	90.31 (d) Until the state fire marshal makes a determination under paragraph (c), the operator
	2980	+	90.32of an airport using class B firefighting foam containing PFAS chemicals must, on or before
2978	2981		90Article 7 Sec. 5.
2979		-	S2216-2 2nd EngrossmentSF2216 REVISOR RSI 91.1state, and no person shall use in this state, class B firefighting foam containing PFAS
2980		-	91.2chemicals.
2981		-	91.3 (b) This subdivision does not apply to the manufacture, sale, distribution, or use of class
2982		-	91.4B firefighting foam for which the inclusion of PFAS chemicals is required by federal law,
2983		-	91.5including but not limited to Code of Federal Regulations, title 14, section 139.317. If a
2984		-	91.6federal requirement to include PFAS chemicals in class B firefighting foam is revoked after
2985		-	91.7January 1, 2024, class B firefighting foam subject to the revoked requirements is no longer
2986		-	91.8exempt under this paragraph effective one year after the day of revocation.
2987		-	91.9 (c) This subdivision does not apply to the manufacture, sale, distribution, or use of class
2988		-	91.10B firefighting foam for purposes of use at an airport, as defined under section 360.013,
2989		-	91.11subdivision 39, until the state fire marshal makes a determination that:
2990		-	91.12 (1) the Federal Aviation Administration has provided policy guidance on the transition
2991		-	91.13to fluorine-free firefighting foam;
2992		-	91.14 (2) a fluorine-free firefighting foam product is included in the Federal Aviation
2993		-	91.15Administration's Qualified Product Database; and
2994		-	91.16 (3) a firefighting foam product included in the database under clause (2) is commercially
2995		-	91.17available in quantities sufficient to reliably meet the requirements under Code of Federal
2996		-	91.18Regulations, title 14, part 139.
2997		-	91.19 (d) Until the state fire marshal makes a determination under paragraph (c), the operator
2998		-	91.20of an airport using class B firefighting foam containing PFAS chemicals must, on or before
2999		-	91.21December 31 each calendar year, submit a report to the state fire marshal regarding the
3000		-	91.22status of the airport's conversion to class B firefighting foam products without intentionally
3001		-	91.23added PFAS, the disposal of class B firefighting foam products with intentionally added
3002		-	91.24PFAS, and an assessment of the factors listed in paragraph (c) as applied to the airport.
3003		-	91.25 (e) Until January 1, 2028, this subdivision does not apply to the manufacture, sale,
3004		-	91.26distribution, or use of class B firefighting foam for use in hangar fixed firefighting systems
3005		-	91.27at an airport, as defined under section 360.013, subdivision 39. The commissioner of the
3006		-	91.28Pollution Control Agency, in consultation with the state fire marshal, may provide the
3007		-	91.29operator of an airport using class B firefighting foam containing PFAS chemicals one year
3008		-	91.30extensions beyond this date upon a showing that the need for additional time is beyond the
3009		-	91.31operator's control and that public safety and the environment will be protected during the
3010		-	91.32period of the extension.
	2982	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI 91.1December 31 each calendar year, submit a report to the state fire marshal regarding the
	2983	+	91.2status of the airport's conversion to class B firefighting foam products without intentionally
	2984	+	91.3added PFAS, the disposal of class B firefighting foam products with intentionally added
	2985	+	91.4PFAS, and an assessment of the factors listed in paragraph (c) as applied to the airport.
	2986	+	91.5 (e) Until January 1, 2028, this subdivision does not apply to the manufacture, sale,
	2987	+	91.6distribution, or use of class B firefighting foam for use in hangar fixed firefighting systems
	2988	+	91.7at an airport, as defined under section 360.013, subdivision 39. The commissioner of the
	2989	+	91.8Pollution Control Agency, in consultation with the state fire marshal, may provide the
	2990	+	91.9operator of an airport using class B firefighting foam containing PFAS chemicals one year
	2991	+	91.10extensions beyond this date upon a showing that the need for additional time is beyond the
	2992	+	91.11operator's control and that public safety and the environment will be protected during the
	2993	+	91.12period of the extension.
3011	2994		91Article 7 Sec. 5.
3012		-	S2216-~~2 2nd~~ EngrossmentSF2216 REVISOR RSI Page.Ln 1.27COMMERCE FINANCE.......................................................................ARTICLE 1
3013		-	Page.Ln 7.13FINANCIAL INSTITUTIONS POLICY...............................................ARTICLE 2
3014		-	Page.Ln 20.27HEALTH INSURANCE.........................................................................ARTICLE 3
3015		-	Page.Ln 37.8GENERAL INSURANCE......................................................................ARTICLE 4
3016		-	Page.Ln 68.14MISCELLANEOUS COMMERCE POLICY........................................ARTICLE 5
3017		-	Page.Ln 83.4CANNABIS FINANCE POLICY..........................................................ARTICLE 6
3018		-	Page.Ln 85.16CONSUMER PROTECTION................................................................ARTICLE 7
	2995	+	S2216-1 1st EngrossmentSF2216 REVISOR RSI Page.Ln 1.27COMMERCE FINANCE.......................................................................ARTICLE 1
	2996	+	Page.Ln 7.1FINANCIAL INSTITUTIONS POLICY...............................................ARTICLE 2
	2997	+	Page.Ln 21.16HEALTH INSURANCE.........................................................................ARTICLE 3
	2998	+	Page.Ln 37.18GENERAL INSURANCE......................................................................ARTICLE 4
	2999	+	Page.Ln 67.24MISCELLANEOUS COMMERCE POLICY........................................ARTICLE 5
	3000	+	Page.Ln 82.16CANNABIS FINANCE POLICY..........................................................ARTICLE 6
	3001	+	Page.Ln 85.1CONSUMER PROTECTION................................................................ARTICLE 7
3019	3002		1
3020	3003		APPENDIX
3021		-	Article locations for S2216-2
	3004	+	Article locations for S2216-1