Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2639 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to commerce; raising liability and uninsured and underinsured motorist
3	3	1.3 coverage amounts; requiring motorcycle insurance to include uninsured and
4	4	1.4 underinsured coverage; establishing the traumatic brain injury recovery account
5	5	1.5 and program; establishing arbitration timelines; requiring a surcharge on automobile
6	6	1.6 insurance for the traumatic brain injury recovery account and program; requiring
7	7	1.7 a report; amending Minnesota Statutes 2024, sections 65B.133, by adding a
8	8	1.8 subdivision; 65B.43, by adding a subdivision; 65B.44, subdivision 1; 65B.48,
9	9	1.9 subdivision 5; 65B.49, subdivisions 3, 3a; proposing coding for new law in
10	10	1.10 Minnesota Statutes, chapters 65B; 297I.
11	11	1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
12	12	1.12 Section 1. Minnesota Statutes 2024, section 65B.133, is amended by adding a subdivision
13	13	1.13to read:
14	14	1.14 Subd. 8.Traumatic brain injury recovery program surcharge; notice.An insurer
15	15	1.15must notify an insured of the surcharge collected under section 297I.12 and all application
16	16	1.16procedures and program information related to the traumatic brain injury program under
17	17	1.17section 65B.85. The notice must include information that describes how an injured person
18	18	1.18may access the expedited application for a certified life care planner under section 65B.85,
19	19	1.19subdivision 7.
20	20	1.20 Sec. 2. Minnesota Statutes 2024, section 65B.43, is amended by adding a subdivision to
21	21	1.21read:
22	22	1.22 Subd. 21.Traumatic brain injury."Traumatic brain injury" has the meaning given in
23	23	1.23section 144.661, subdivision 2.
24	24	1Sec. 2.
25	25	25-04210 as introduced03/10/25 REVISOR RSI/DG
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 2639NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: FATEH)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading03/17/2025
32	32	Referred to Commerce and Consumer Protection 2.1 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
33	33	2.2of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
34	34	2.3 Sec. 3. Minnesota Statutes 2024, section 65B.44, subdivision 1, is amended to read:
35	35	2.4 Subdivision 1.Inclusions.(a) Basic economic loss benefits shall provide reimbursement
36	36	2.5for all loss suffered through injury arising out of the maintenance or use of a motor vehicle,
37	37	2.6subject to any applicable deductibles, exclusions, disqualifications, and other conditions,
38	38	2.7and shall provide a minimum of $40,000 for loss arising out of the injury of any one person,
39	39	2.8consisting of:
40	40	2.9 (1) $20,000 for medical expense loss arising out of injury to any one person; and
41	41	2.10 (2) a total of $20,000 for income loss, replacement services loss, funeral expense loss,
42	42	2.11survivor's economic loss, and survivor's replacement services loss arising out of the injury
43	43	2.12to any one person.
44	44	2.13 (b) Basic economic loss benefits must provide reimbursement for all loss suffered through
45	45	2.14a traumatic brain injury arising out of the maintenance or use of a motor vehicle, subject to
46	46	2.15applicable deductibles, exclusions, disqualifications, and other conditions, and must provide
47	47	2.16a minimum of $80,000 for loss arising out of the traumatic brain injury to any one person,
48	48	2.17consisting of:
49	49	2.18 (1) $40,000 for medical expense loss arising out of the traumatic brain injury to any one
50	50	2.19person; and
51	51	2.20 (2) a total of $40,000 for income loss, replacement services loss, funeral expense loss,
52	52	2.21survivor's economic loss, and survivor's replacement services loss arising out of the traumatic
53	53	2.22brain injury to any one person.
54	54	2.23 (b) (c) Notwithstanding any other law to the contrary, a person entitled to basic economic
55	55	2.24loss benefits under this chapter is entitled to the full medical expense benefits set forth in
56	56	2.25subdivision 2, and may not receive medical expense benefits that are in any way less than
57	57	2.26those provided for in subdivision 2, or that involve any preestablished limitations on the
58	58	2.27benefits. Medical expenses must be reasonable and must be for necessary medical care as
59	59	2.28provided in subdivision 2. This paragraph shall not be deemed to alter the obligations of an
60	60	2.29insured or the rights of a reparation obligor as set forth in section 65B.56.
61	61	2.30 (c) (d) No reparation obligor or health plan company as defined in section 62Q.01,
62	62	2.31subdivision 4, may enter into or renew any contract that provides, or has the effect of
63	63	2.32providing, managed care services to no-fault claimants. For the purposes of this section,
64	64	2Sec. 3.
65	65	25-04210 as introduced03/10/25 REVISOR RSI/DG 3.1"managed care services" is defined as any program of medical services that uses health care
66	66	3.2providers managed, owned, employed by, or under contract with a health plan company.
67	67	3.3 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
68	68	3.4of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
69	69	3.5 Sec. 4. Minnesota Statutes 2024, section 65B.48, subdivision 5, is amended to read:
70	70	3.6 Subd. 5.Motorcycle coverage.(a) Every owner of a motorcycle registered or required
71	71	3.7to be registered in this state or operated in this state by the owner or with the owner's
72	72	3.8permission shall provide and maintain security for the payment of tort liabilities arising out
73	73	3.9of the maintenance or use of the motorcycle in this state. Security may be provided by a
74	74	3.10contract of liability insurance complying with section 65B.49, subdivision subdivisions 3
75	75	3.11and 3a, or by qualifying as a self insurer in the manner provided in subdivision subdivisions
76	76	3.123 and 3a.
77	77	3.13 (b) At the time an application for motorcycle insurance without personal injury protection
78	78	3.14coverage is completed, there must be attached to the application a separate form containing
79	79	3.15a written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten
80	80	3.16that states:
81	81	3.17 "Under Minnesota law, a policy of motorcycle coverage issued in the State of Minnesota
82	82	3.18 must provide liability coverage only, and there is no requirement that the policy provide
83	83	3.19 personal injury protection (PIP) coverage in the case of injury sustained by the insured.
84	84	3.20 No PIP coverage provided by an automobile insurance policy you may have in force
85	85	3.21 will extend to provide coverage in the event of a motorcycle accident."
86	86	3.22 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
87	87	3.23of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
88	88	3.24 Sec. 5. Minnesota Statutes 2024, section 65B.49, subdivision 3, is amended to read:
89	89	3.25 Subd. 3.Residual liability insurance.(1) Each plan of reparation security shall also
90	90	3.26contain stated limits of liability, exclusive of interest and costs, with respect to each vehicle
91	91	3.27for which coverage is thereby granted, of not less than $30,000 $60,000 because of bodily
92	92	3.28injury to one person in any one accident and,; subject to said limit for one person, of not
93	93	3.29less than $60,000 $120,000 because of injury to two or more persons in any one accident,;
94	94	3.30and, if the accident has resulted in injury to or destruction of property, of not less than
95	95	3.31$10,000 $20,000 because of such injury to or destruction of property of others in any one
96	96	3.32accident.
97	97	3Sec. 5.
98	98	25-04210 as introduced03/10/25 REVISOR RSI/DG 4.1 (2) Under residual liability insurance the reparation obligor shall be liable to pay, on
99	99	4.2behalf of the insured, sums which the insured is legally obligated to pay as damages because
100	100	4.3of bodily injury and property damage arising out of the ownership, maintenance or use of
101	101	4.4any motor vehicle, including a motor vehicle permissively operated by an insured as that
102	102	4.5term is defined in section 65B.43, subdivision 5, if the injury or damage occurs within this
103	103	4.6state, the United States of America, its territories or possessions, or Canada. A reparation
104	104	4.7obligor shall also be liable to pay sums which another reparation obligor is entitled to recover
105	105	4.8under the indemnity provisions of section 65B.53, subdivision 1.
106	106	4.9 (3) Every plan of reparation security shall be subject to the following provisions which
107	107	4.10need not be contained therein:
108	108	4.11 (a) The liability of the reparation obligor with respect to the residual liability coverage
109	109	4.12required by this clause shall become absolute whenever injury or damage occurs; such
110	110	4.13liability may not be canceled or annulled by any agreement between the reparation obligor
111	111	4.14and the insured after the occurrence of the injury or damage; no statement made by the
112	112	4.15insured or on the insured's behalf and no violation of said policy shall defeat or void said
113	113	4.16policy.
114	114	4.17 (b) The satisfaction by the insured of a judgment for such injury or damage shall not be
115	115	4.18a condition precedent to the right or duty of the reparation obligor to make payment on
116	116	4.19account of such injury or damage.
117	117	4.20 (c) The reparation obligor shall have the right to settle any claim covered by the residual
118	118	4.21liability insurance policy, and if such settlement is made in good faith, the amount thereof
119	119	4.22shall be deductible from the limits of liability for the accident out of which such claim arose.
120	120	4.23 (d) Except as provided in subdivision 5a, a residual liability insurance policy shall be
121	121	4.24excess of a nonowned vehicle policy whether the nonowned vehicle is borrowed or rented,
122	122	4.25or used for business or pleasure. A nonowned vehicle is one not used or provided on a
123	123	4.26regular basis.
124	124	4.27 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
125	125	4.28of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
126	126	4.29 Sec. 6. Minnesota Statutes 2024, section 65B.49, subdivision 3a, is amended to read:
127	127	4.30 Subd. 3a.Uninsured and underinsured motorist coverages.(1) No plan of reparation
128	128	4.31security may be renewed, delivered or issued for delivery, or executed in this state with
129	129	4.32respect to any motor vehicle registered or principally garaged in this state unless separate
130	130	4.33uninsured and underinsured motorist coverages are provided therein. Each coverage, at a
131	131	4Sec. 6.
132	132	25-04210 as introduced03/10/25 REVISOR RSI/DG 5.1minimum, must provide limits of $25,000 $50,000 because of injury to or the death of one
133	133	5.2person in any accident and $50,000 $100,000 because of injury to or the death of two or
134	134	5.3more persons in any accident. In the case of injury to, or the death of, two or more persons
135	135	5.4in any accident, the amount available to any one person must not exceed the coverage limit
136	136	5.5provided for injury to, or the death of, one person in any accident.
137	137	5.6 (2) Every owner of a motor vehicle or motorcycle registered or principally garaged in
138	138	5.7this state shall maintain uninsured and underinsured motorist coverages as provided in this
139	139	5.8subdivision.
140	140	5.9 (3) No reparation obligor is required to provide limits of uninsured and underinsured
141	141	5.10motorist coverages in excess of the bodily injury liability limit provided by the applicable
142	142	5.11plan of reparation security.
143	143	5.12 (4) No recovery shall be permitted under the uninsured and underinsured motorist
144	144	5.13coverages of this section for basic economic loss benefits paid or payable, or which would
145	145	5.14be payable but for any applicable deductible.
146	146	5.15 (5) If at the time of the accident the injured person is occupying a motor vehicle, the
147	147	5.16limit of liability for uninsured and underinsured motorist coverages available to the injured
148	148	5.17person is the limit specified for that motor vehicle. However, if the injured person is
149	149	5.18occupying a motor vehicle of which the injured person is not an insured, the injured person
150	150	5.19may be entitled to excess insurance protection afforded by a policy in which the injured
151	151	5.20party is otherwise insured. The excess insurance protection is limited to the extent of covered
152	152	5.21damages sustained, and further is available only to the extent by which the limit of liability
153	153	5.22for like coverage applicable to any one motor vehicle listed on the automobile insurance
154	154	5.23policy of which the injured person is an insured exceeds the limit of liability of the coverage
155	155	5.24available to the injured person from the occupied motor vehicle.
156	156	5.25 If at the time of the accident the injured person is not occupying a motor vehicle or
157	157	5.26motorcycle, the injured person is entitled to select any one limit of liability for any one
158	158	5.27vehicle afforded by a policy under which the injured person is insured.
159	159	5.28 (6) Regardless of the number of policies involved, vehicles involved, persons covered,
160	160	5.29claims made, vehicles or premiums shown on the policy, or premiums paid, in no event
161	161	5.30shall the limit of liability for uninsured and underinsured motorist coverages for two or
162	162	5.31more motor vehicles be added together to determine the limit of insurance coverage available
163	163	5.32to an injured person for any one accident.
164	164	5Sec. 6.
165	165	25-04210 as introduced03/10/25 REVISOR RSI/DG 6.1 (7) The uninsured and underinsured motorist coverages required by this subdivision do
166	166	6.2not apply to bodily injury of the insured while occupying a motor vehicle or motorcycle
167	167	6.3owned by the insured, unless the occupied vehicle is an insured motor vehicle or motorcycle.
168	168	6.4 (8) The uninsured and underinsured motorist coverages required by this subdivision do
169	169	6.5not apply to bodily injury of the insured while occupying a motorcycle owned by the insured.
170	170	6.6 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
171	171	6.7of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
172	172	6.8 Sec. 7. [65B.536] ARBITRATION TIMELINES.
173	173	6.9 The timeline and staffing for binding arbitration must occur in a manner to limit delay.
174	174	6.10The standing committee must be comprised of no less than 24 members. Within seven days
175	175	6.11after the date the itemization of benefits claimed and supporting documentation are received
176	176	6.12from the claimant, the respondent must serve a response to the petition setting forth the
177	177	6.13grounds upon which the claim is denied, accompanied by the documents supporting the
178	178	6.14denial of the benefits claimed.
179	179	6.15 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to policies
180	180	6.16of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
181	181	6.17 Sec. 8. [65B.85] TRAUMATIC BRAIN INJURY RECOVERY ACCOUNT AND
182	182	6.18PROGRAM.
183	183	6.19 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
184	184	6.20the meanings given.
185	185	6.21 (b) "Account" means the traumatic brain injury and spinal cord injury recovery account
186	186	6.22established under this section.
187	187	6.23 (c) "Account administrator" means a person appointed by the attorney general as an
188	188	6.24account administrator under this section.
189	189	6.25 (d) "Eligible beneficiary" means a person who suffered a traumatic brain injury in an
190	190	6.26automobile accident and qualifies for a monetary payment from the account.
191	191	6.27 (e) "Traumatic brain injury" has the meaning given in section 144.661, subdivision 2.
192	192	6.28 Subd. 2.Creation of account.The traumatic brain injury recovery account is established
193	193	6.29in the special revenue fund. Money in the account is annually appropriated to the
194	194	6.30commissioner of human services for the purposes under subdivision 3.
195	195	6Sec. 8.
196	196	25-04210 as introduced03/10/25 REVISOR RSI/DG 7.1 Subd. 3.Permissible use of account.Money in the account must be used only to
197	197	7.2distribute compensation to eligible beneficiaries under subdivision 4 and to pay for costs
198	198	7.3incurred to administer the account.
199	199	7.4 Subd. 4.Distributions to eligible beneficiaries.The commissioner must develop
200	200	7.5procedures to adequately and fairly disperse the funds from the account, including a common
201	201	7.6application, timelines, and appeals process.
202	202	7.7 Subd. 5.Eligibility criteria.The commissioner must develop criteria to determine and
203	203	7.8assess eligibility based on the eligibility requirements under section 256B.49. The
204	204	7.9commissioner may require applicants to use an application form and method determined
205	205	7.10by the commissioner.
206	206	7.11 Subd. 6.Compensation amount.The commissioner must develop criteria to determine
207	207	7.12the monthly, annual, and total amount of funding provided to each eligible beneficiary. The
208	208	7.13commissioner must consider whether and for how long the compensation amount defers or
209	209	7.14delays an applicant from enrolling in medical assistance.
210	210	7.15 Subd. 7.Special uses.The commissioner must develop an expedited application form
211	211	7.16and procedure for eligible applicants who are actively engaged in litigation or arbitration
212	212	7.17related to the automobile accident that caused the applicant's injuries. An additional award
213	213	7.18beyond compensation granted under subdivision 6 may be awarded to applicants who
214	214	7.19demonstrate the need to hire a certified life care planner for the litigation or arbitration.
215	215	7.20 Subd. 8.Annual report.The commissioner must submit an annual report that provides
216	216	7.21a financial overview of the account activities to the chairs and ranking minority members
217	217	7.22of the legislative committees with jurisdiction over the account.
218	218	7.23 Subd. 9.No private right of action.A person does not have a private right of action
219	219	7.24with respect to a payment from the account or the administration of the account.
220	220	7.25 Sec. 9. [297I.12] TRAUMATIC BRAIN INJURY RECOVERY SURCHARGE.
221	221	7.26 Subdivision 1.Surcharge.(a) An insurer engaged in the writing of policies of automobile
222	222	7.27insurance must collect a surcharge at the rate of ... cents per vehicle for every six months
223	223	7.28of coverage on each policy of automobile insurance that provides comprehensive insurance
224	224	7.29coverage issued or renewed in Minnesota. The surcharge must not be considered premium
225	225	7.30for any purpose, including the computation of premium tax or agents' commissions. The
226	226	7.31surcharge amount must be separately stated on either a billing or policy declaration sent to
227	227	7.32the insured. An insurer must remit the revenue derived from the surcharge under this section
228	228	7Sec. 9.
229	229	25-04210 as introduced03/10/25 REVISOR RSI/DG 8.1to the commissioner of revenue for the traumatic brain injury recovery program under
230	230	8.2section 65B.85.
231	231	8.3 (b) For purposes of this subdivision, "policy of automobile insurance" has the meaning
232	232	8.4given in section 65B.14, covering only the following types of vehicles defined in section
233	233	8.5168.002, if the vehicle has a gross vehicle weight that does not exceed 10,000 pounds:
234	234	8.6 (1) a passenger automobile;
235	235	8.7 (2) a pickup truck;
236	236	8.8 (3) a van, but not a commuter van as defined in section 168.126; or
237	237	8.9 (4) a motorcycle.
238	238	8.10 Subd. 2.Traumatic brain injury recovery account.A special revenue account in the
239	239	8.11state treasury must be credited with the proceeds of the surcharge imposed under subdivision
240	240	8.121. Revenue may be used only for the traumatic brain injury recovery program under section
241	241	8.1365B.85.
242	242	8.14 Subd. 3.Collection and administration.The commissioner must collect and administer
243	243	8.15the surcharge imposed by this section in the same manner as the taxes imposed by this
244	244	8.16chapter.
245	245	8Sec. 9.
246	246	25-04210 as introduced03/10/25 REVISOR RSI/DG