HF 4077

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 12:14pm

A bill for an act
relating to commerce; adding, modifying, or eliminating provisions governing
consumer protection, monetary and financial institutions policy, insurance, and
telecommunications; modifying and authorizing certain on-sale liquor licenses;
making technical changes; requiring reports; establishing penalties; amending
Minnesota Statutes 2022, sections 45.011, subdivision 1; 47.20, subdivision 2;
47.54, subdivisions 2, 6; 47.59, subdivision 3; 48.24, subdivision 2; 58.02,
subdivisions 18, 21, by adding a subdivision; 58.04, subdivisions 1, 2; 58.05,
subdivisions 1, 3; 58.06, by adding subdivisions; 58.08, subdivisions 1a, 2; 58.10,
subdivision 3; 58.115; 58.13, subdivision 1; 60A.201, by adding a subdivision;
65A.29, subdivisions 7, 8; 70A.05; 72A.20, subdivision 13; 80A.61; 80A.66;
80C.05, subdivision 3; 82B.021, subdivision 26; 82B.095, subdivision 3; 82B.19,
subdivision 1; 115C.08, subdivision 2; 116J.39, subdivision 1; 116J.394; 116J.399,
subdivisions 1, 8, by adding a subdivision; 237.121; 237.162, subdivision 4;
237.163, subdivisions 2, 6, 7; 237.19; 272.12; 325D.43, by adding a subdivision;
325D.44, by adding subdivisions; 325E.66, subdivision 1; 325F.03; 325F.04;
325F.05; 325F.56, subdivision 2; 325F.62, subdivision 3; 340A.404, subdivision
2; 412.221, subdivision 6; 429.021, subdivision 1; 471.6161, subdivision 8;
471.617, subdivision 2; 507.235, subdivisions 1a, 5; 513.73, subdivision 3; 519.05;
550.37, subdivisions 2, 4, 6, 12a, 14, 20, 22, 23, by adding subdivisions; 550.39;
559.21, subdivisions 2a, 4, by adding subdivisions; 559.211, subdivision 1; 559.213;
563.01, subdivisions 3, 4, 8, 9, 10; 563.02, subdivision 2; 571.72, subdivisions 6,
8, 9, 10; 571.911; 571.914, subdivision 1; 571.92; 571.921; 571.922; 571.924,
subdivision 1; 571.925; 571.927; 604.18, subdivision 1; Minnesota Statutes 2023
Supplement, sections 47.59, subdivision 2; 53B.28, subdivisions 18, 25; 53B.29;
53B.69, by adding subdivisions; 61A.031; 80A.50; 222.37, subdivision 1; 239.791,
subdivision 8; 325E.21, subdivisions 1b, 11; 332.71, subdivisions 2, 4, 5, 7; 332.72;
332.73, subdivision 1; 332.74, subdivisions 3, 5; Laws 2022, chapter 86, article
2, section 3; proposing coding for new law in Minnesota Statutes, chapters 53B;
58; 60A; 62Q; 65A; 237; 325F; 332; 513; 550; proposing coding for new law as
Minnesota Statutes, chapters 46A; 325O; 332C; 559A; repealing Minnesota Statutes
2022, sections 45.014; 58.08, subdivision 3; 82B.25; 239.791, subdivision 3;
332.3351; 559.201; 559.202; Minnesota Statutes 2023 Supplement, sections 53B.58;
332.71, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

CONSUMER PROTECTION

Section 1.

Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 18, is amended
to read:

Subd. 18.

Money transmission.

(a) "Money transmission" means:

(1) selling or issuing payment instruments to a person located in this state;

(2) selling or issuing stored value to a person located in this state; or

(3) receiving money for transmission from a person located in this state.

(b) deleted text begin Money deleted text end deleted text begin includes payroll processing services. deleted text end Money does not include the provision
solely of online or telecommunications services or network access.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 25, is amended
to read:

Subd. 25.

Payroll processing services.

"Payroll processing services" means deleted text begin receiving
money for transmission pursuant to a contract with a person to deliver deleted text end new text begin delivering new text end wages or
salaries, deleted text begin make deleted text end new text begin making new text end payment of payroll taxes to state and federal agencies, deleted text begin make deleted text end new text begin making new text end
payments relating to employee benefit plans, deleted text begin or make deleted text end new text begin making new text end distributions of other authorized
deductions from wages or salaries new text begin , or transmitting other funds on behalf of an employer in
connection with transactions related to employees new text end . The term payroll processing services
deleted text begin does not include deleted text end new text begin includes new text end an employer performing payroll processing services on the
employer's own behalf or on behalf of the employer's affiliate deleted text begin , or a deleted text end new text begin and new text end professional
employment deleted text begin organization subject to regulation under other applicable state law deleted text end new text begin organizations new text end .

Sec. 3.

Minnesota Statutes 2023 Supplement, section 53B.29, is amended to read:

53B.29 EXEMPTIONS.

This chapter does not apply to:

(1) an operator of a payment system, to the extent the operator of a payment system
provides processing, clearing, or settlement services between or among persons exempted
by this section or licensees in connection with wire transfers, credit card transactions, debit
card transactions, stored-value transactions, automated clearing house transfers, or similar
funds transfers;

(2) a person appointed as an agent of a payee to collect and process a payment from a
payor to the payee for goods or services, other than money transmission itself, provided to
the payor by the payee, provided that:

(i) there exists a written agreement between the payee and the agent directing the agent
to collect and process payments from payors on the payee's behalf;

(ii) the payee holds the agent out to the public as accepting payments for goods or services
on the payee's behalf; and

(iii) payment for the goods and services is treated as received by the payee upon receipt
by the agent so that the payor's obligation is extinguished and there is no risk of loss to the
payor if the agent fails to remit the funds to the payee;

(3) a person that acts as an intermediary by processing payments between an entity that
has directly incurred an outstanding money transmission obligation to a sender, and the
sender's designated recipient, provided that the entity:

(i) is properly licensed or exempt from licensing requirements under this chapter;

(ii) provides a receipt, electronic record, or other written confirmation to the sender
identifying the entity as the provider of money transmission in the transaction; and

(iii) bears sole responsibility to satisfy the outstanding money transmission obligation
to the sender, including the obligation to make the sender whole in connection with any
failure to transmit the funds to the sender's designated recipient;

(4) the United States; a department, agency, or instrumentality of the United States; or
an agent of the United States;

(5) money transmission by the United States Postal Service or by an agent of the United
States Postal Service;

(6) a state; county; city; any other governmental agency, governmental subdivision, or
instrumentality of a state; or the state's agent;

(7) a federally insured depository financial institution; bank holding company; office of
an international banking corporation; foreign bank that establishes a federal branch pursuant
to the International Bank Act, United States Code, title 12, section 3102, as amended or
recodified from time to time; corporation organized pursuant to the Bank Service Corporation
Act, United States Code, title 12, sections 1861 to 1867, as amended or recodified from
time to time; or corporation organized under the Edge Act, United States Code, title 12,
sections 611 to 633, as amended or recodified from time to time;

(8) electronic funds transfer of governmental benefits for a federal, state, county, or
governmental agency by a contractor on behalf of the United States or a department, agency,
or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or
instrumentality thereof;

(9) a board of trade designated as a contract market under the federal Commodity
Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from
time to time; or a person that in the ordinary course of business provides clearance and
settlement services for a board of trade to the extent of its operation as or for a board;

(10) a registered futures commission merchant under the federal commodities laws, to
the extent of the registered futures commission merchant's operation as a merchant;

(11) a person registered as a securities broker-dealer under federal or state securities
laws, to the extent of the person's operation as a securities broker-dealer;

(12) an individual employed by a licensee, authorized delegate, or any person exempted
from the licensing requirements under this chapter when acting within the scope of
employment and under the supervision of the licensee, authorized delegate, or exempted
person as an employee and not as an independent contractor;

(13) a person expressly appointed as a third-party service provider to or agent of an
entity exempt under clause (7), solely to the extent that:

(i) the service provider or agent is engaging in money transmission on behalf of and
pursuant to a written agreement with the exempt entity that sets forth the specific functions
that the service provider or agent is to perform; and

(ii) the exempt entity assumes all risk of loss and all legal responsibility for satisfying
the outstanding money transmission obligations owed to purchasers and holders of the
outstanding money transmission obligations upon receipt of the purchaser's or holder's
money or monetary value by the service provider or agent; deleted text begin or
deleted text end

new text begin (14) a payroll processing services provider; or
new text end

deleted text begin (14) deleted text end new text begin (15) new text end a person exempt by regulation or order if the commissioner finds that (i) the
exemption is in the public interest, and (ii) the regulation of the person is not necessary for
the purposes of this chapter.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 80A.50, is amended to read:

80A.50 SECTION 302; FEDERAL COVERED SECURITIES; SMALL
CORPORATE OFFERING REGISTRATION.

(a) Federal covered securities.

(1) Required filing of records. With respect to a federal covered security, as defined
in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. Section 77r(b)(2)), that is not
otherwise exempt under sections 80A.45 through 80A.47, a rule adopted or order issued
under this chapter may require the filing of any or all of the following records:

(A) before the initial offer of a federal covered security in this state, all records that are
part of a federal registration statement filed with the Securities and Exchange Commission
under the Securities Act of 1933 and a consent to service of process complying with section
80A.88 signed by the issuer;

(B) after the initial offer of the federal covered security in this state, all records that are
part of an amendment to a federal registration statement filed with the Securities and
Exchange Commission under the Securities Act of 1933; and

(C) to the extent necessary or appropriate to compute fees, a report of the value of the
federal covered securities sold or offered to persons present in this state, if the sales data
are not included in records filed with the Securities and Exchange Commission.

(2) Notice filing effectiveness and renewal. A notice filing under subsection (a) is
effective for one year commencing on the later of the notice filing or the effectiveness of
the offering filed with the Securities and Exchange Commission. On or before expiration,
the issuer may renew a notice filing by filing a copy of those records filed by the issuer with
the Securities and Exchange Commission that are required by rule or order under this chapter
to be filed. A previously filed consent to service of process complying with section 80A.88
may be incorporated by reference in a renewal. A renewed notice filing becomes effective
upon the expiration of the filing being renewed.

(3) Notice filings for federal covered securities under section 18(b)(4)(D). With
respect to a security that is a federal covered security under Section 18(b)(4)(D) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(4)(D)), a rule under this chapter may
require a notice filing by or on behalf of an issuer to include a copy of Form D, including
the Appendix, as promulgated by the Securities and Exchange Commission, and a consent
to service of process complying with section 80A.88 signed by the issuer not later than 15
days after the first sale of the federal covered security in this state.

(4) Stop orders. Except with respect to a federal security under Section 18(b)(1) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(1)), if the administrator finds that there is
a failure to comply with a notice or fee requirement of this section, the administrator may
issue a stop order suspending the offer and sale of a federal covered security in this state.
If the deficiency is corrected, the stop order is void as of the time of its issuance and no
penalty may be imposed by the administrator.

(b) Small corporation offering registration.

(1) Registration required. A security meeting the conditions set forth in this section
may be registered as set forth in this section.

(2) Availability. Registration under this section is available only to the issuer of securities
and not to an affiliate of the issuer or to any other person for resale of the issuer's securities.
The issuer must be organized under the laws of one of the states or possessions of the United
States. The securities offered must be exempt from registration under the Securities Act of
1933 pursuant to Rule 504 of Regulation D (15 U.S.C. Section 77c).

(3) Disqualification. Registration under this section is not available to any of the
following issuers:

(A) an issuer subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934;

(B) an investment company;

(C) a development stage company that either has no specific business plan or purpose
or has indicated that its business plan is to engage in a merger or acquisition with an
unidentified company or companies or other entity or person;

(D) an issuer if the issuer or any of its predecessors, officers, directors, governors,
partners, ten percent stock or equity holders, promoters, or any selling agents of the securities
to be offered, or any officer, director, governor, or partner of the selling agent:

(i) has filed a registration statement that is the subject of a currently effective registration
stop order entered under a federal or state securities law within five years before the filing
of the small corporate offering registration application;

(ii) has been convicted within five years before the filing of the small corporate offering
registration application of a felony or misdemeanor in connection with the offer, purchase,
or sale of a security or a felony involving fraud or deceit, including, but not limited to,
forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to
defraud;

(iii) is currently subject to a state administrative enforcement order or judgment entered
by a state securities administrator or the Securities and Exchange Commission within five
years before the filing of the small corporate offering registration application, or is subject
to a federal or state administrative enforcement order or judgment in which fraud or deceit,
including, but not limited to, making untrue statements of material facts or omitting to state
material facts, was found and the order or judgment was entered within five years before
the filing of the small corporate offering registration application;

(iv) is currently subject to an order, judgment, or decree of a court of competent
jurisdiction temporarily restraining or enjoining, or is subject to an order, judgment, or
decree of a court of competent jurisdiction permanently restraining or enjoining the party
from engaging in or continuing any conduct or practice in connection with the purchase or
sale of any security or involving the making of a false filing with a state or with the Securities
and Exchange Commission entered within five years before the filing of the small corporate
offering registration application; or

(v) is subject to a state's administrative enforcement order, or judgment that prohibits,
denies, or revokes the use of an exemption for registration in connection with the offer,
purchase, or sale of securities,

(I) except that clauses (i) to (iv) do not apply if the person subject to the disqualification
is duly licensed or registered to conduct securities-related business in the state in which the
administrative order or judgment was entered against the person or if the dealer employing
the party is licensed or registered in this state and the form BD filed in this state discloses
the order, conviction, judgment, or decree relating to the person, and

(II) except that the disqualification under this subdivision is automatically waived if the
state securities administrator or federal agency that created the basis for disqualification
determines upon a showing of good cause that it is not necessary under the circumstances
to deny the registration.

(4) Filing and effectiveness of registration statement. A small corporate offering
registration statement must be filed with the administrator. If no stop order is in effect and
no proceeding is pending under section 80A.54, such registration statement shall become
effective automatically at the close of business on the 20th day after filing of the registration
statement or the last amendment of the registration statement or at such earlier time as the
administrator may designate by rule or order. For the purposes of a nonissuer transaction,
other than by an affiliate of the issuer, all outstanding securities of the same class identified
in the small corporate offering registration statement as a security registered under this
chapter are considered to be registered while the small corporate offering registration
statement is effective. A small corporate offering registration statement is effective for one
year after its effective date or for any longer period designated in an order under this chapter.
A small corporate offering registration statement may be withdrawn only with the approval
of the administrator.

(5) Contents of registration statement. A small corporate offering registration statement
under this section shall be on Form U-7, including exhibits required by the instructions
thereto, as adopted by the North American Securities Administrators Association, or such
alternative form as may be designated by the administrator by rule or order and must include:

(A) a consent to service of process complying with section 80A.88;

(B) a statement of the type and amount of securities to be offered and the amount of
securities to be offered in this state;

(C) a specimen or copy of the security being registered, unless the security is
uncertificated, a copy of the issuer's articles of incorporation and bylaws or their substantial
equivalents in effect, and a copy of any indenture or other instrument covering the security
to be registered;

(D) a signed or conformed copy of an opinion of counsel concerning the legality of the
securities being registered which states whether the securities, when sold, will be validly
issued, fully paid, and nonassessable and, if debt securities, binding obligations of the issuer;

(E) the states (i) in which the securities are proposed to be offered; (ii) in which a
registration statement or similar filing has been made in connection with the offering
including information as to effectiveness of each such filing; and (iii) in which a stop order
or similar proceeding has been entered or in which proceedings or actions seeking such an
order are pending;

(F) a copy of the offering document proposed to be delivered to offerees; and

(G) a copy of any other pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the offering and
any solicitation of interest used in compliance with section 80A.46(17)(B).

(6) Copy to purchaser. A copy of the offering document as filed with the administrator
must be delivered to each person purchasing the securities prior to sale of the securities to
such person.

(c) Offering limit. Offers and sales of securities under a small corporate offering
registration as set forth in this section are allowed up to the limit prescribed by Code of
Federal Regulations, title 17, part 230.504 (b)(2), as amended.

new text begin (d) Regulation A - Tier 2 filing requirements.
new text end

new text begin (1) Initial filing. An issuer planning to offer and sell securities in Minnesota in an
offering exempt under Tier 2 of federal Regulation A must, at least 21 calendar days before
the date of the initial sale of securities in Minnesota, submit to the administrator:
new text end

new text begin (A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the
documents filed with the Securities Exchange Commission; and
new text end

new text begin (B) a consent to service of process on Form U-2, if consent to service of process is not
provided in the Regulation A - Tier 2 offering notice filing form.
new text end

new text begin The initial notice filing made in Minnesota is effective for 12 months after the date the
filing is made.
new text end

new text begin (2) Renewal. For each additional 12-month period in which the same offering is
continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew
the notice filing by filing (i) the Regulation A - Tier 2 offering notice filing form marked
"renewal," or (ii) a cover letter or other document requesting renewal. The renewal filing
must be made on or before the date notice filing expires.
new text end

new text begin (3) Amendment. An issuer may increase the amount of securities offered in Minnesota
by submitting a Regulation A - Tier 2 offering notice filing form or other document
describing the transaction.
new text end

Sec. 5.

Minnesota Statutes 2022, section 80A.61, is amended to read:

80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
REPRESENTATIVE.

(a) Application for initial registration by broker-dealer, agent, investment adviser,
or investment adviser representative. A person shall register as a broker-dealer, agent,
investment adviser, or investment adviser representative by filing an application and a
consent to service of process complying with section 80A.88, and paying the fee specified
in section 80A.65 and any reasonable fees charged by the designee of the administrator for
processing the filing. The application must contain:

(1) the information or record required for the filing of a uniform application; and

(2) upon request by the administrator, any other financial or other information or record
that the administrator determines is appropriate.

(b) Amendment. If the information or record contained in an application filed under
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
shall promptly file a correcting amendment.

(c) Effectiveness of registration. If an order is not in effect and a proceeding is not
pending under section 80A.67, registration becomes effective at noon on the 45th day after
a completed application is filed, unless the registration is denied. A rule adopted or order
issued under this chapter may set an earlier effective date or may defer the effective date
until noon on the 45th day after the filing of any amendment completing the application.

(d) Registration renewal. A registration is effective until midnight on December 31 of
the year for which the application for registration is filed. Unless an order is in effect under
section 80A.67, a registration may be automatically renewed each year by filing such records
as are required by rule adopted or order issued under this chapter, by paying the fee specified
in section 80A.65, and by paying costs charged by the designee of the administrator for
processing the filings.

(e) Additional conditions or waivers. A rule adopted or order issued under this chapter
may impose such other conditions, not inconsistent with the National Securities Markets
Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
part, specific requirements in connection with registration as are in the public interest and
for the protection of investors.

(f) Funding portal registration. A funding portal that has its principal place of business
in the state of Minnesota shall register with the state of Minnesota by filing with the
administrator a copy of the information or record required for the filing of an application
for registration as a funding portal in the manner established by the Securities and Exchange
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
any rule adopted or order issued, and any amendments thereto.

(g) Application for investment adviser representative registration.

(1) The application for initial registration as an investment adviser representative pursuant
to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
Industry Registration or Transfer) in accordance with the form instructions and by filing
the form U-4 with the IARD. The application for initial registration must also include the
following:

(i) proof of compliance by the investment adviser representative with the examination
requirements of:

(A) the Uniform Investment Adviser Law Examination (Series 65); or

(B) new text begin the General Securities Representative Examination (Series 7) and new text end the Uniform
Combined State Law Examination (Series 66);

(ii) any other information the administrator may reasonably require.

(2) The application for the annual renewal registration as an investment adviser
representative shall be filed with the IARD.

(3)(i) The investment adviser representative is under a continuing obligation to update
information required by Form U-4 as changes occur;

(ii) An investment adviser representative and the investment adviser must file promptly
with the IARD any amendments to the representative's Form U-4; and

(iii) An amendment will be considered to be filed promptly if the amendment is filed
within 30 days of the event that requires the filing of the amendment.

(4) An application for initial or renewal of registration is not considered filed for purposes
of section 80A.58 until the required fee and all required submissions have been received
by the administrator.

(5) The application for withdrawal of registration as an investment adviser representative
pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
with the IARD.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2022, section 80A.66, is amended to read:

80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.

(a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
minimum financial requirements for broker-dealers registered or required to be registered
under this chapter and investment advisers registered or required to be registered under this
chapter.

(b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
chapter and an investment adviser registered or required to be registered under this chapter
shall file such financial reports as are required by a rule adopted or order issued under this
chapter. If the information contained in a record filed under this subsection is or becomes
inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
amendment.

(c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22):

(1) a broker-dealer registered or required to be registered under this chapter and an
investment adviser registered or required to be registered under this chapter shall make and
maintain the accounts, correspondence, memoranda, papers, books, and other records
required by rule adopted or order issued under this chapter;

(2) broker-dealer records required to be maintained under paragraph (1) may be
maintained in any form of data storage acceptable under Section 17(a) of the Securities
Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
administrator; and

(3) investment adviser records required to be maintained under paragraph (d)(1) may
be maintained in any form of data storage required by rule adopted or order issued under
this chapter.

(d) Records and reports of private funds.

(1) In general. An investment adviser to a private fund shall maintain such records of,
and file with the administrator such reports and amendments thereto, that an exempt reporting
adviser is required to file with the Securities and Exchange Commission pursuant to SEC
Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.

(2) Treatment of records. The records and reports of any private fund to which an
investment adviser provides investment advice shall be deemed to be the records and reports
of the investment adviser.

(3) Required information. The records and reports required to be maintained by an
investment adviser, which are subject to inspection by a representative of the administrator
at any time, shall include for each private fund advised by the investment adviser, a
description of:

(A) the amount of assets under management;

(B) the use of leverage, including off-balance-sheet leverage, as to the assets under
management;

(C) counterparty credit risk exposure;

(D) trading and investment positions;

(E) valuation policies and practices of the fund;

(F) types of assets held;

(G) side arrangements or side letters, whereby certain investors in a fund obtain more
favorable rights or entitlements than other investors;

(H) trading practices; and

(I) such other information as the administrator determines is necessary and appropriate
in the public interest and for the protection of investors, which may include the establishment
of different reporting requirements for different classes of fund advisers, based on the type
or size of the private fund being advised.

(4) Filing of records. A rule or order under this chapter may require each investment
adviser to a private fund to file reports containing such information as the administrator
deems necessary and appropriate in the public interest and for the protection of investors.

(e) Audits or inspections. The records of a broker-dealer registered or required to be
registered under this chapter and of an investment adviser registered or required to be
registered under this chapter, including the records of a private fund described in paragraph
(d) and the records of investment advisers to private funds, are subject to such reasonable
periodic, special, or other audits or inspections by a representative of the administrator,
within or without this state, as the administrator considers necessary or appropriate in the
public interest and for the protection of investors. An audit or inspection may be made at
any time and without prior notice. The administrator may copy, and remove for audit or
inspection copies of, all records the administrator reasonably considers necessary or
appropriate to conduct the audit or inspection. The administrator may assess a reasonable
charge for conducting an audit or inspection under this subsection.

(f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
under this chapter may require a broker-dealer or investment adviser that has custody of or
discretionary authority over funds or securities of a customer or client to obtain insurance
or post a bond or other satisfactory form of security in an amount of at least $25,000, but
not to exceed $100,000. The administrator may determine the requirements of the insurance,
bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
of security may not be required of a broker-dealer registered under this chapter whose net
capital exceeds, or of an investment adviser registered under this chapter whose minimum
financial requirements exceed, the amounts required by rule or order under this chapter.
The insurance, bond, or other satisfactory form of security must permit an action by a person
to enforce any liability on the insurance, bond, or other satisfactory form of security if
instituted within the time limitations in section 80A.76(j)(2).

(g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
customer except under the supervision of a broker-dealer and an investment adviser
representative may not have custody of funds or securities of a client except under the
supervision of an investment adviser or a federal covered investment adviser. A rule adopted
or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
regarding custody of funds or securities of a customer and on an investment adviser regarding
custody of securities or funds of a client.

(h) Investment adviser brochure rule. With respect to an investment adviser registered
or required to be registered under this chapter, a rule adopted or order issued under this
chapter may require that information or other record be furnished or disseminated to clients
or prospective clients in this state as necessary or appropriate in the public interest and for
the protection of investors and advisory clients.

(i) Continuing education. A rule adopted or order issued under this chapter may require
an individual registered under section 80A.57 new text begin or 80A.58 new text end to participate in a continuing
education program approved by the Securities and Exchange Commission and administered
by a self-regulatory organization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 7.

Minnesota Statutes 2022, section 80C.05, subdivision 3, is amended to read:

Subd. 3.

Escrow or impoundment of fees and other funds by commissioner.

If the
commissioner finds that the applicant has failed to demonstrate that adequate financial
arrangements have been made to fulfill obligations to provide real estate, improvements,
equipment, inventory, training or other items included in the offering, the commissioner
may by rule or order require the escrow deleted text begin or deleted text end new text begin , new text end impoundment new text begin , or deferral new text end of franchise fees and
other funds paid by the franchisee or subfranchisor until no later than the time of opening
of the franchise business.

Sec. 8.

Minnesota Statutes 2022, section 82B.021, subdivision 26, is amended to read:

Subd. 26.

Standards of professional practice.

"Standards of professional practice"
means new text begin the version of new text end the uniform standards of professional appraisal practice of the
deleted text begin Appraisers deleted text end new text begin Appraisal new text end Standards Board of the Appraisal Foundation in effect deleted text begin as of January
1, 1991, or other version of these standards the commissioner may by order designate deleted text end new text begin on
the date the appraiser signs the appraisal report new text end .

Sec. 9.

Minnesota Statutes 2022, section 82B.095, subdivision 3, is amended to read:

Subd. 3.

Conformance to Appraisal Qualifications Board criteria.

(a) The
requirements to obtain new text begin and maintain new text end a trainee real property appraiser, licensed real property
appraiser, certified residential real property appraiser, or certified general real property
appraiser license are the education, examination, and experience requirements established
by the Appraiser Qualifications Board of the Appraisal Foundation and published in the
most recent version of the Real Property Appraiser Qualification Criteria.

(b) An applicant must complete the applicable education and experience requirements
before taking the required examination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 10.

Minnesota Statutes 2022, section 82B.19, subdivision 1, is amended to read:

Subdivision 1.

License renewals.

deleted text begin (a) deleted text end The commissioner must determine that a licensed
real estate appraiser has met the continuing education requirements of this chapter before
the commissioner renews a license. This determination must be based on, for a resident
appraiser, course completion records uploaded electronically in a manner prescribed by the
commissioner and, for a nonresident appraiser, course completion records presented by
electronic transmission or uploaded electronically in a manner prescribed by the
commissioner.

deleted text begin The basic continuing education requirement for renewal of a license is the completion
by the applicant either as a student or as an instructor, during the immediately preceding
term of licensing, of at least 30 classroom hours of instruction in courses or seminars that
have received the approval of the commissioner. Classroom hour credit must not be accepted
for courses of less than two hours. As part of the continuing education requirements of this
section, the commissioner must require that all real estate appraisers successfully complete
the seven-hour national USPAP update course every two years. If the applicant's immediately
preceding term of licensing consisted of six or more months, but fewer than 24 months, the
applicant must provide evidence of completion of 15 hours of instruction during the license
period. The credit hours required under this section may be credited to a person for distance
education courses that meet Appraiser Qualifications Board criteria. An approved prelicense
education course may be taken for continuing education credit.
deleted text end

deleted text begin (b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete
the seven-hour national USPAP update course every two years.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 11.

Minnesota Statutes 2022, section 115C.08, subdivision 2, is amended to read:

Subd. 2.

Imposing fee.

The board shall notify the commissioner of revenue if the
unencumbered balance of the fund falls below $4,000,000, and within deleted text begin 60 deleted text end new text begin 90 new text end days after
receiving notice from the board, the commissioner of revenue shall impose the fee established
in subdivision 3 on the use of a tank for four calendar months, with payment to be submitted
with each monthly distributor tax return.

Sec. 12.

Minnesota Statutes 2023 Supplement, section 239.791, subdivision 8, is amended
to read:

Subd. 8.

Disclosure; reporting.

(a) A refinery or terminal, shall provide, at the time
gasoline is sold or transferred from the refinery or terminal, a bill of lading or shipping
manifest to the person who receives the gasoline. For oxygenated gasoline, the bill of lading
or shipping manifest must include the identity and the volume percentage or gallons of
oxygenate included in the gasoline deleted text begin , and it must state: "This fuel contains an oxygenate deleted text end . deleted text begin Do
not blend this fuel with ethanol or with any other oxygenate." deleted text end For nonoxygenated gasoline,
the bill or manifest must state: "This fuel is not oxygenated. It must not be sold at retail in
Minnesota." This subdivision does not apply to sales or transfers of gasoline between
refineries, between terminals, or between a refinery and a terminal.

(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
must state the volume percentage of biofuel blended into gasoline delivered through a meter
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14
and 16.

(c) On or before the 23rd day of each month, a person responsible for the product must
report to the department, in the form prescribed by the commissioner, the gross number of
gallons of intermediate blends sold at retail by the person during the preceding calendar
month. The report must identify the number of gallons by blend type. For purposes of this
subdivision, "intermediate blends" means blends of gasoline and biofuel in which the biofuel
content, exclusive of denaturants and other permitted components, is greater than ten percent
and no more than 50 percent by volume. This paragraph only applies to a person who is
responsible for selling intermediate blends at retail at more than ten locations. A person
responsible for the product at fewer than ten locations is not precluded from reporting the
gross number of intermediate blends if a report is available.

(d) All reports provided pursuant to paragraph (c) are nonpublic data, as defined in
section 13.02, subdivision 9.

Sec. 13.

Minnesota Statutes 2022, section 272.12, is amended to read:

272.12 CONVEYANCES, TAXES PAID BEFORE RECORDING.

When:

(a) a deed or other instrument conveying land,

(b) a plat of any townsite or addition thereto,

(c) a survey required pursuant to section 508.47,

(d) a condominium plat subject to chapter 515 or 515A or a declaration that contains
such a plat, or

(e) a common interest community plat subject to chapter 515B or a declaration that
contains such a plat,

is presented to the county auditor for transfer, the auditor shall ascertain from the records
if there be taxes delinquent upon the land described therein, or if it has been sold for taxes.
An assignment of a sheriff's or referee's certificate of sale, when the certificate of sale
describes real estate, and certificates of redemption from mortgage or lien foreclosure sales,
when the certificate of redemption encompasses real estate and is issued to a junior creditor,
are considered instruments conveying land for the purposes of this section and section
272.121. If there are taxes delinquent, the auditor shall certify to the same; and upon payment
of such taxes, or in case no taxes are delinquent, shall transfer the land upon the books of
the auditor's office, and note upon the instrument, over official signature, the words, "no
delinquent taxes and transfer entered," or, if the land described has been sold or assigned
to an actual purchaser for taxes, the words "paid by sale of land described within;" and,
unless such statement is made upon such instrument, the county recorder or the registrar of
titles shall refuse to receive or record the same; provided, that sheriff's or referees' certificates
of sale on execution or foreclosure of a lien or mortgage, certificates of redemption from
mortgage or lien foreclosure sales issued to the redeeming mortgagor or lienee, new text begin documents
evidencing the termination of a contract for deed as described in section 559.213, new text end deeds of
distribution made by a personal representative in probate proceedings, transfer on death
deeds under section 507.071, decrees and judgments, receivers receipts, patents, and copies
of town or statutory city plats, in case the original plat filed in the office of the county
recorder has been lost or destroyed, and the instruments releasing, removing and discharging
reversionary and forfeiture provisions affecting title to land and instruments releasing,
removing or discharging easement rights in land or building or other restrictions, may be
recorded without such certificate; and, provided that instruments conveying land and, as
appurtenant thereto an easement over adjacent tract or tracts of land, may be recorded
without such certificate as to the land covered by such easement; and provided further, that
any instrument granting an easement made in favor of any public utility or pipe line for
conveying gas, liquids or solids in suspension, in the nature of a right-of-way over, along,
across or under a tract of land may be recorded without such certificate as to the land covered
by such easement. Documents governing homeowners associations of condominiums,
townhouses, common interest ownership communities, and other planned unit developments
may be recorded without the auditor's certificate to the extent provided in section
515B.1-116(e).

A deed of distribution made by a personal representative in a probate proceeding, a
decree, or a judgment that conveys land shall be presented to the county auditor, who shall
transfer the land upon the books of the auditor's office and note upon the instrument, over
official signature, the words, "transfer entered", and the instrument may then be recorded.
A decree or judgment that affects title to land but does not convey land may be recorded
without presentation to the auditor.

A violation of this section by the county recorder or the registrar of titles shall be a gross
misdemeanor, and, in addition to the punishment therefor, the recorder or registrar shall be
liable to the grantee of any instrument so recorded for the amount of any damages sustained.

When, as a condition to permitting the recording of deed or other instrument affecting
the title to real estate previously forfeited to the state under the provisions of sections 281.16
to 281.25, county officials, after such real estate has been purchased or repurchased, have
required the payment of taxes erroneously assumed to have accrued against such real estate
after forfeiture and before the date of purchase or repurchase, the sum required to be so paid
shall be refunded to the persons entitled thereto out of moneys in the funds in which the
sum so paid was placed. Delinquent taxes are those taxes deemed delinquent under section
279.02.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2022, section 325D.43, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Person. new text end

new text begin "Person" means any individual, corporation, firm, partnership,
incorporated or unincorporated association, or any other legal or commercial entity.
new text end

Sec. 15.

Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Advertisements, displays, or offers. new text end

new text begin (a) A person engages in a deceptive
trade practice when, in the course of business, vocation, or occupation, the person advertises,
displays, or offers a price for goods or services that does not include all mandatory fees or
surcharges. If the person that disseminates an advertisement is independent of the advertiser,
then that person is not liable for the content of the advertisement.
new text end

new text begin (b) For purposes of this subdivision, "mandatory fee" includes but is not limited to a fee
or surcharge that:
new text end

new text begin (1) must be paid in order to purchase the goods or services being advertised;
new text end

new text begin (2) is not reasonably avoidable by the consumer; or
new text end

new text begin (3) a reasonable person would expect to be included in the purchase of the goods or
services being advertised.
new text end

new text begin For the purposes of this subdivision, mandatory fee does not include taxes imposed by a
government entity on the sale, use, purchase, receipt, or delivery of the goods or services.
new text end

new text begin (c) A delivery platform must comply with the following requirements:
new text end

new text begin (1) at the point when a consumer views and selects either a vendor or items for purchase,
a delivery platform must display in a clear and conspicuous manner that an additional flat
fee or percentage is charged. The disclosure must include the additional fee or percentage
amount; and
new text end

new text begin (2) after a consumer selects items for purchase, but prior to checkout, a delivery platform
must display a subtotal page that itemizes the price of the menu items and the additional
fee that is included in the total cost.
new text end

new text begin (d) A person may charge a reasonable postage or shipping fee that is incurred by a
consumer who has purchased a good that requires shipping.
new text end

new text begin (e) Nothing in this subdivision prevents a person from offering goods or services at a
discounted price from the advertised, displayed, or offered price.
new text end

new text begin (f) A person offering goods or services in an auction where consumers can place bids
on the goods or services and the total cost is indeterminable must disclose in a clear and
conspicuous manner any mandatory fees associated with the transaction and that the total
cost of the goods or services may vary.
new text end

new text begin (g) A person offering services, where the total cost is determined by consumer selections
and preferences relating to distance or time, must disclose in a clear and conspicuous manner
the factors that determine the total price, any mandatory fees associated with the transaction,
and that the total cost of the services may vary.
new text end

new text begin (h) This subdivision is enforceable to the extent permitted by federal law.
new text end

Sec. 16.

Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Automatic gratuity. new text end

new text begin A food service establishment complies with this section
if, in every offer or advertisement for the purchase or lease of a good or service that includes
pricing information, the total price of the good or service being offered or advertised includes
a clear and conspicuous disclosure of the percentage of any automatic and mandatory
gratuities charged.
new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 1b, is amended
to read:

Subd. 1b.

Purchase or acquisition record required.

(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a deleted text begin permanent deleted text end record
written in English, using an electronic record program at the time of each purchase or
acquisition of scrap metal or a motor vehicle. The record must include:

(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal or motor vehicle purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased
or acquired and a unique transaction identifier;

(3) a photocopy or electronic scan of the seller's proof of identification including the
identification number;

(4) the amount paid and the number of the check or electronic transfer used to purchase
or acquire the scrap metal or motor vehicle;

(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal or motor vehicle, including the vehicle make and model, and any
identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;

(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens
or encumbrances and the seller has the right to sell it;

(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal or motor vehicle was received
by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount
paid for the scrap metal or motor vehicle; new text begin and
new text end

deleted text begin (8) in order to purchase or acquire a detached catalytic converter, the vehicle identification
number of the car it was removed from or, as an alternative, any numbers, bar codes, stickers,
or other unique markings, whether resulting from the pilot project created under subdivision
2b or some other source. The alternative number must be under a numbering system that
can be immediately linked to the vehicle identification number by law enforcement; and
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end the identity or identifier of the employee completing the transaction.

(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall
at all reasonable times be open to the inspection of any properly identified law enforcement
officer.

(c) Except for the purchase or acquisition of detached catalytic converters or motor
vehicles, no record is required for property purchased or acquired from merchants,
manufacturers, salvage pools, insurance companies, rental car companies, financial
institutions, charities, dealers licensed under section 168.27, or wholesale dealers, having
an established place of business, or of any goods purchased or acquired at open sale from
any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
and kept by the person, which must be shown upon demand to any properly identified law
enforcement officer.

(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
(7), to the seller in every transaction.

(e) The commissioner of public safety and law enforcement agencies in the jurisdiction
where a dealer is located may conduct inspections and audits as necessary to ensure
compliance, refer violations to the city or county attorney for criminal prosecution, and
notify the registrar of motor vehicles.

(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
employee, or representative may not disclose personal information concerning a customer
without the customer's consent unless the disclosure is required by law or made in response
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).

Sec. 18.

Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 11, is amended
to read:

Subd. 11.

Prohibition on possessing catalytic converters; exception.

(a) It is unlawful
for a person to possess a used catalytic converter that is not attached to a motor vehicle
except when:

(1) the converter is marked with the date the converter was removed from the vehicle
and the identification number of the vehicle from which the converter was removed or deleted text begin an
alternative number to the vehicle identification number deleted text end new text begin , as an alternative to the vehicle
identification number, any numbers, bar codes, stickers, or other unique markings, whether
resulting from the pilot project created under subdivision 2b or some other source new text end ; or

(2) the converter has been EPA certified for reuse as a replacement part.

(b) If an alternative number to the vehicle identification number is used, it must be under
a numbering system that can be immediately linked to the vehicle identification number by
law enforcement. The marking of the vehicle identification or alternative number may be
made in any permanent manner, including but not limited to an engraving or use of permanent
ink. The marking must clearly and legibly indicate the date removed and the vehicle
identification number or the alternative number and the method by which law enforcement
can link the converter to the vehicle identification number.

Sec. 19.

Minnesota Statutes 2022, section 325F.03, is amended to read:

325F.03 FLAME RESISTANT PUBLIC ASSEMBLY TENTS.

No person, firm or corporation shall establish, maintain or operate any circus, side show,
carnival, tent show, theater, skating rink, dance hall, or a similar exhibition, production,
engagement or offering or other place of assemblage in or under which deleted text begin ten deleted text end new text begin 15 new text end or more
persons may gather for any lawful purpose in any tent, awning or other fabric enclosure
unless such tent, awning or other fabric enclosure, and all auxiliary tents, curtains, drops,
awnings and all decorative materials, are made from a nonflammable material or are treated
and maintained in a flame resistant condition. This section deleted text begin shall deleted text end new text begin does new text end not apply to tents new text begin
designed or manufactured for camping, backpacking, mountaineering, or children's play;
tents new text end used to conduct committal services on the grounds of a cemetery deleted text begin , deleted text end new text begin ; new text end nor to tents, awnings
or other fabric enclosures erected and used within a sound stage, or other similar structural
enclosure which is equipped with an overhead automatic sprinkler system.

Sec. 20.

Minnesota Statutes 2022, section 325F.04, is amended to read:

325F.04 FLAME RESISTANT TENTS deleted text begin AND SLEEPING BAGS deleted text end .

No person, firm new text begin , new text end or corporation may sell or offer for sale or manufacture for sale in this
state any tent new text begin subject to section 325F.03 new text end unless all fabrics or pliable materials in the tent
are durably flame resistant. deleted text begin No person, firm or corporation may sell or offer for sale or
manufacture for sale in this state any sleeping bag unless it meets the standards of the
commissioner of public safety for flame resistancy. deleted text end Tents deleted text begin and sleeping bags deleted text end new text begin subject to
section 325F.03 new text end shall be conspicuously labeled as being durably flame resistant.

Sec. 21.

Minnesota Statutes 2022, section 325F.05, is amended to read:

325F.05 RULES.

The commissioner of public safety shall act so as to have effective rules concerning
standards for deleted text begin nonflammable, flame resistant and deleted text end durably new text begin flame new text end resistant materials and for
labeling requirements deleted text begin by January 1, 1976 deleted text end new text begin under sections 325F.03 and 325F.04 new text end . In order to
comply with sections 325F.03 and 325F.04 all materials and labels must comply with the
rules adopted by the commissioner. The commissioner has general rulemaking power to
otherwise implement sections 325F.03 to 325F.07.

Sec. 22.

new text begin [325F.078] SALES OF AEROSOL DUSTERS CONTAINING 1,1-
DIFLUOROETHANE (DFE).
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Aerosol duster" means a product used to clean electronics and other items by means
of an aerosol sprayed from a pressurized container.
new text end

new text begin (c) "Behind the counter" means placement by a retailer of a product to ensure that
customers do not have direct access to the product before a sale is made, requiring the seller
to deliver the product directly to the buyer.
new text end

new text begin (d) "DFE" or "1,1-difluoroethane" means a chemical with a Chemicals Abstract Service
Registry Number of 75-37-6.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for retail sale. new text end

new text begin A retailer must only sell an aerosol duster that
contains DFE:
new text end

new text begin (1) from behind the counter;
new text end

new text begin (2) to a purchaser who presents valid evidence that the purchaser is at least 21 years of
age; and
new text end

new text begin (3) in a quantity that complies with the purchasing limit established in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Purchasing limit. new text end

new text begin A retailer is prohibited from selling more than three cans of
an aerosol duster containing DFE to a customer in a single transaction.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin Subdivisions 2 and 3 do not apply to a business purchasing aerosol
dusters online.
new text end

new text begin Subd. 5. new text end

new text begin Labeling. new text end

new text begin (a) An aerosol duster containing DFE must not be sold in this state
unless the aerosol duster conforms to the labeling requirements established in this subdivision.
new text end

new text begin (b) The label on each can of aerosol duster containing DFE must contain the following,
placed within a red rectangle encompassing at least one-half of the area of the rear side of
the can:
new text end

new text begin (1) at the top left corner of the rectangle, the words "Inhalant Abuse Public Safety
Announcement" in red ink on a white background that covers one quarter of the rear side
of the can;
new text end

new text begin (2) below the words in clause (1), the words "DANGER: DEATH! Breathing this product
to get high can kill you" in white ink on a red background;
new text end

new text begin (3) at the top right corner of the rectangle, a skull and crossbones symbol in black ink
on a yellow background contained within a triangle, and the word "DANGER" in black ink
on a yellow background just below the triangle;
new text end

new text begin (4) below the symbol in clause (3), in black ink on a white background, the words:
"Abuse or Misuse" underlined, under which are the words "Danger: Can stop your heart
Caution: Can cut off air to your brain Warning: Can result in death";
new text end

new text begin (5) below the words in clause (4), a drawing of a person lying on the ground, in white
ink, within a red circle, on a white background, contained within a red triangle;
new text end

new text begin (6) below the triangle in clause (5), in white ink on a red background, the word
"WARNING," and, below that, "Risk of death when abused or misused";
new text end

new text begin (7) across the bottom of the rectangle, in black type on a white background, the words
"This product contains a bittering agent to help discourage inhalant abuse. The misuse and
abuse of this product by deliberately concentrating and inhaling the chemical contents
presents a serious health hazard and can result in fatality. Please use this product responsibly
as the product was intended."; and
new text end

new text begin (8) below the words in clause (7), two smaller versions of the skull and crossbones
symbols described in clause (3) on a white background, placed equidistant from the edges
of the red rectangle, and in between which, in red ink, is the website address
"www.inhalant.org."
new text end

new text begin (c) The safety symbols and color standards of the label described in this section must
conform with the ANSI Z535 safety signage standards guidelines established by the American
National Standards Institute.
new text end

new text begin Subd. 6. new text end

new text begin Violations. new text end

new text begin (a) A person who violates subdivision 2 or 3 is guilty of a
misdemeanor.
new text end

new text begin (b) It is an affirmative defense to a charge under subdivision 2, clause (2), if the defendant
proves by a preponderance of the evidence that the defendant reasonably and in good faith
relied on proof of age as described in section 340A.503, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to purchases of aerosol dusters made on or after that date.
new text end

Sec. 23.

Minnesota Statutes 2022, section 325F.56, subdivision 2, is amended to read:

Subd. 2.

Repairs.

"Repairs" means work performed for a total price of more than $100
deleted text begin and less than $7,500 deleted text end , including the price of parts and materials, to restore a malfunctioning,
defective, or worn motor vehicle, appliance, or dwelling place used primarily for personal,
family, or household purposes and not primarily for business or agricultural purposes.
"Repairs" do not include service calls or estimates.

Sec. 24.

Minnesota Statutes 2022, section 325F.62, subdivision 3, is amended to read:

Subd. 3.

Required notice to be displayed.

Each shop shall conspicuously display a
sign that states the following: "Upon a customer's request, this shop is required to provide
a written estimate for repairs costing new text begin more than new text end $100 deleted text begin to $7,500 deleted text end if the shop agrees to perform
the repairs. The shop's final price cannot exceed its written estimate by more than ten percent
without the prior authorization of the customer. You must request that the estimate be in
writing. An oral estimate is not subject to the above repair cost limitations. If the shop
charges a fee for the storage or care of repaired motor vehicles or appliances, the shop shall
conspicuously display a sign that states the amount assessed for storage or care, when the
charge begins to accrue, and the interval of time between assessments."

Sec. 25.

new text begin [325F.676] TICKET SALES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Entertainment" means all forms of entertainment, including but not limited to
theatrical or operatic performances, concerts, motion pictures, entertainment at fairgrounds,
amusement parks, athletic competitions and other sports, and all other forms of diversion,
recreation, or show.
new text end

new text begin (d) "Internet domain name" means a globally unique, hierarchical reference to an Internet
host or service, which is assigned through a centralized Internet naming authority and which
is composed of a series of character strings separated by periods with the rightmost string
specifying the top of the hierarchy.
new text end

new text begin (e) "Online ticket marketplace" means the administrator of a website or other electronic
service, including an agent, employee, or assignee of the administrator, that sells tickets or
maintains a platform to facilitate the sale of tickets.
new text end

new text begin (f) "Operator" means a person, including an agent, employee, or assignee of the person,
who:
new text end

new text begin (1) owns, operates, or controls a place of entertainment;
new text end

new text begin (2) produces entertainment; or
new text end

new text begin (3) sells a ticket to a place of entertainment for original sale.
new text end

new text begin (g) "Person" means a party, individual, partnership, association, corporation, or other
legal entity.
new text end

new text begin (h) "Place of entertainment" means an entertainment facility, including but not limited
to an amphitheater, theater, stadium, arena, racetrack, museum, amusement park, venue,
club, or other place where performances, concerts, exhibits, athletic games, contests, or
other forms of entertainment are held. For the purposes of this section, place of entertainment
does not include movie theaters.
new text end

new text begin (i) "Ticket reseller" means a person that offers or sells tickets for resale after the original
sale to an entertainment event located in this state and includes an operator to the extent
that the operator offers or sells tickets for resale. Sales by a ticket reseller include sales by
any means, including but not limited to in person or by telephone, mail, delivery service,
facsimile, Internet, email, or other electronic means. A ticket reseller does not include a
person that purchases a ticket solely for the person's own use or the use of the person's
invitees, employees, or agents.
new text end

new text begin (j) "URL" means a uniform resource locator for a website on the Internet.
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) An operator, ticket reseller, or online ticket marketplace must,
at all times during the ticket listing and purchasing process, disclose in an easily readable
and conspicuous manner and in dollars:
new text end

new text begin (1) the total cost of the ticket, inclusive of all fees and surcharges that must be paid in
order to purchase the ticket;
new text end

new text begin (2) the portion of the ticket price that represents a service charge; and
new text end

new text begin (3) any other fee or surcharge charged to the purchaser.
new text end

new text begin (b) The disclosure of subtotals, fees, charges, and all other components of the total price
must not be false or misleading, and must not be presented more prominently or in the same
or larger size than the total price. The disclosure of subtotals, fees, charges, and all other
components of the total price may be displayed in a manner that allows the purchaser to
hide or minimize the itemized list. The price of a ticket must not increase with respect to a
particular person after the ticket is first displayed to the person, excluding reasonable fees
for the delivery of nonelectronic tickets based on the delivery method selected by the
purchaser and any additional purchases made by the purchaser, which must be disclosed
prior to accepting payment.
new text end

new text begin (c) A ticket reseller and online ticket marketplace must disclose in an easily readable
and conspicuous manner on the ticker reseller's or online ticket marketplace's website or
electronic service:
new text end

new text begin (1) that the website or electronic service is owned or operated by a ticket reseller or
online ticket marketplace and that the price of a resale ticket offered for sale may be higher
or lower than the original purchase price;
new text end

new text begin (2) that the purchaser is responsible for checking with the place of entertainment for
information on changes to the event or cancellations prior to the event's start time; and
new text end

new text begin (3) the refund policy of the ticket reseller or online ticket marketplace.
new text end

new text begin A ticket reseller or online ticket marketplace must require a purchaser to confirm having
read the disclosures required by this paragraph before completing a transaction.
new text end

new text begin (d) A ticket reseller or online ticket marketplace must provide to the purchaser proof of
purchase, which must include all event and ticket information, within 24 hours of the
purchase, including:
new text end

new text begin (1) that the purchaser is responsible for checking with the place of entertainment for
information on changes to the event or cancellations prior to the event's start time; and
new text end

new text begin (2) the refund policy of the ticket reseller or online ticket marketplace.
new text end

new text begin (e) An online ticket marketplace must not use any combination of text, images, trademark,
copyright, web designs, or Internet addresses that is identical or substantially similar to text,
images, trademark, copyright, web designs, or Internet addresses associated with a place of
entertainment without the written permission of the place of entertainment duly authorized
to provide the permission. This paragraph does not prohibit an online ticket marketplace
from using text containing the name of a place of entertainment or of an event in order to
describe the location of the event or the event itself. This paragraph does not prohibit an
online ticket marketplace from providing information or images identifying the specific
seat or area the purchaser will occupy in the place of entertainment.
new text end

new text begin (f) The obligations of paragraphs (a) to (d) do not apply to any person, unless the person
engaged in annual aggregate transactions that were equal to or greater than $5,000.
new text end

new text begin Subd. 3. new text end

new text begin Prohibitions. new text end

new text begin (a) A ticket reseller or online ticket marketplace must not:
new text end

new text begin (1) sell or offer to sell more than one copy of the same ticket to a place of entertainment;
new text end

new text begin (2) directly or indirectly employ another person to wait in line to purchase tickets for
the purpose of reselling the tickets if the practice is prohibited or if the place of entertainment
has posted a policy prohibiting the practice;
new text end

new text begin (3) sell or offer to sell a ticket without first informing the person of the location of the
place of entertainment and the ticket's assigned seat, including but not limited to the seat
number, row, and section number of the seat;
new text end

new text begin (4) sell or offer to sell a ticket for which there is no assigned seat without first informing
the person of the general admission area to which the ticket corresponds; or
new text end

new text begin (5) advertise, offer for sale, or contract for the sale of a ticket before the ticket has been
made available to the public, including via presale, without first obtaining permission from
the place of entertainment and having actual or constructive possession of the ticket, unless
the ticket reseller owns the ticket pursuant to a season ticket package purchased by the ticket
reseller.
new text end

new text begin (b) A person must not use or cause to be used an Internet domain name or subdomain
thereof in an operator, ticket reseller, or online ticket marketplace website's URL that contains
any of the following, unless acting on behalf of the place of entertainment, event, or person
scheduled to perform or appear at the event:
new text end

new text begin (1) the name of a place of entertainment;
new text end

new text begin (2) the name of an event, including the name of a person scheduled to perform or appear
at the event; or
new text end

new text begin (3) a name substantially similar to those described in clause (1) or (2).
new text end

new text begin (c) A person must not:
new text end

new text begin (1) circumvent any portion of the process for purchasing a ticket on the Internet or for
admission to a place of entertainment, including but not limited to security or identity
validation measures or an access control system; or
new text end

new text begin (2) disguise the identity of a purchaser for the purpose of purchasing a number of tickets
for admission to a place of entertainment that exceeds the maximum number of tickets
allowed for purchase by a person.
new text end

new text begin (d) A person must not sell a ticket obtained in violation of paragraph (c) if the person:
new text end

new text begin (1) participated in or had the ability to control the conduct committed in violation of
paragraph (c); or
new text end

new text begin (2) knew that the ticket was acquired in violation of paragraph (c).
new text end

new text begin (e) An operator, online ticket marketplace, or ticket reseller must not sell a ticket unless:
new text end

new text begin (1) the ticket is in the possession or constructive possession of the operator, online ticket
marketplace, or ticket reseller; or
new text end

new text begin (2) the operator, online ticket marketplace, or ticket reseller has a written contract with
the place of entertainment to obtain the ticket.
new text end

new text begin (f) Pursuant to United States Code, title 15, section 45c, circumvention of a security
measure, access control system, or other technological control measure used by an online
ticket marketplace to enforce posted event ticket purchasing limits or to maintain the integrity
of posted online ticket purchasing order rules is prohibited.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner data requests; data practices. new text end

new text begin Upon request by the
commissioner, an online ticket marketplace must disclose to the commissioner information
about technology and methods used in an alleged violation of subdivision 3, paragraph (f).
Data collected or maintained by the commissioner under this subdivision are civil
investigative data under section 13.39 and the commissioner may share with the attorney
general any not public data, as defined in section 13.02, subdivision 8a, received under this
subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin The commissioner may enforce this section under section 45.027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, and applies to tickets
sold on or after that date.
new text end

Sec. 26.

new text begin [325O.01] CITATION.
new text end

new text begin This chapter may be cited as the "Prohibiting Social Media Manipulation Act."
new text end

Sec. 27.

new text begin [325O.02] DEFINITIONS.
new text end

new text begin (a) For purposes of this chapter, the following terms have the meanings given.
new text end

new text begin (b) "Accessible user interface" means a way for a user to input data, make a choice, or
take an action on a social media platform in two clicks or fewer.
new text end

new text begin (c) "Account holder" means a natural person or legal person who holds an account or
profile with a social media platform.
new text end

new text begin (d) "Account interactions" means any action that an account holder can make within a
social media platform that has an impact on another user. Account interactions include but
are not limited to:
new text end

new text begin (1) sending messages or invitations to users;
new text end

new text begin (2) reporting users;
new text end

new text begin (3) commenting on, resharing, liking, voting, or otherwise reacting to users' user-generated
content; and
new text end

new text begin (4) posting user-generated content or disseminating user-generated content to users.
new text end

new text begin Actions that have no impact on other users, including viewing user-generated content or
public content, are not account interactions.
new text end

new text begin (e) "Algorithmic ranking system" means a computational process, including one derived
from algorithmic decision making, machine learning, statistical analysis, or other data
processing or artificial intelligence techniques, used to determine the selection, order, relative
prioritization, or relative prominence of content from a set of information that is provided
to a user on a social media platform, including search results ranking, content
recommendations, content display, or any other automated content selection method.
new text end

new text begin (f) "Click" means an act of selecting an option on an electronic interface by pressing a
button, touching a screen, making a gesture, issuing a voice command, or other means.
new text end

new text begin (g) "Content" means any media, including but not limited to written posts, images, visual
or audio recordings, notifications, and games, that a user views, reads, watches, listens to,
or otherwise interacts or engages with on a social media platform. Content includes other
account holders' accounts or profiles when recommended to a user by the social media
platform.
new text end

new text begin (h) "Default" means a preselected option adopted by a social media platform for the
social media platform's service, product, or feature.
new text end

new text begin (i) "Device operating system provider" means a business that manages or develops
operating system software for mobile or desktop devices, including but not limited to personal
computers, smartphones, and tablets, which manage device resources and are loaded by a
boot program. Device operating system provider does not include a business that manages
or develops operating system software for a video game console, as defined by section
325E.72.
new text end

new text begin (j) "Engage" or "engagement" means a user's utilization of the social media platform.
new text end

new text begin (k) "Existing extended network" means a user's existing network plus the set of account
holders on a social media platform who are all directly connected to the account holders
within that user's existing network.
new text end

new text begin (l) "Existing network" means the set of account holders on a social media platform with
whom a user has consented to have a direct connection.
new text end

new text begin (m) "Expressed preferences" means a freely given, considered, specific, and unambiguous
indication of a user's preferences regarding the user's engagement with a social media
platform. Expressed preferences cannot be based on the user's time spent engaging with
content on the social media platform, nor on the usage of features that do not indicate explicit
preference, including comments made, posts reshared, or similar actions that may be taken
on content the user perceives to be of low quality. Expressed preferences may not be obtained
through a user interface designed or manipulated with the substantial effect of subverting
or impairing a user's decision making.
new text end

new text begin (n) "Optimize" means promoted, prioritized, or maximized by a social media platform's
algorithmic ranking system.
new text end

new text begin (o) "Social media platform" means an electronic medium, including a browser-based or
application-based interactive computer service, Internet website, telephone network, or data
network, that allows an account holder to create, share, and view user-generated content
for the predominant purpose of social interaction, sharing content, or personal networking.
Social media platform does not include:
new text end

new text begin (1) an Internet search provider;
new text end

new text begin (2) an Internet service provider;
new text end

new text begin (3) an email or short message service;
new text end

new text begin (4) a streaming service, online video game, or other Internet website where the content
is not user generated but where interactive functions enable chat, comments, reviews, or
other interactive functionality that is incidental to, directly related to, or dependent upon
provision of the content;
new text end

new text begin (5) a communication service, including text, audio, or video communication technology,
provided by a business to the business's employees and clients for use in the course of
business activities and not for public distribution, except that social media platform does
include a communication service provided by a social media platform;
new text end

new text begin (6) an advertising network with the sole function of delivering commercial content;
new text end

new text begin (7) a telecommunications carrier, as defined in United States Code, title 47, section 153;
new text end

new text begin (8) a broadband service, as defined by section 116J.39, subdivision 1;
new text end

new text begin (9) single-purpose community groups for education;
new text end

new text begin (10) teleconferencing or video-conferencing services that allow reception and transmission
of audio and video signals for real-time communication, except that social media platform
does include teleconferencing or video-conferencing services provided by a social media
platform;
new text end

new text begin (11) cloud computing services, which may include cloud storage and shared document
collaboration; or
new text end

new text begin (12) providing or obtaining technical support for a platform, product, or service.
new text end

new text begin (p) "Time sensitive" means content that is welcomed under a user's expressed preferences
and that would have significantly reduced value to the user with the passing of time.
new text end

new text begin (q) "User" means a natural person who is located in Minnesota and who holds an account
or profile with a social media platform.
new text end

new text begin (r) "User-generated content" means any content created by an account holder that is
uploaded, posted, shared, or disseminated on the social media platform.
new text end

new text begin (s) "Varied set of account holders" means a set of account holders who have different
behaviors and histories.
new text end

Sec. 28.

new text begin [325O.03] SCOPE; EXCLUSIONS.
new text end

new text begin (a) A social media platform is subject to this chapter if the social media platform:
new text end

new text begin (1) does business in Minnesota or provides products or services that are targeted to
residents of Minnesota; and
new text end

new text begin (2) has more than 10,000 monthly active account holders located in Minnesota.
new text end

new text begin (b) For purposes of this chapter, a social media platform may determine whether an
account holder is located in Minnesota based on:
new text end

new text begin (1) the account holder's own supplied address or location;
new text end

new text begin (2) global positioning system-level latitude, longitude, or altitude coordinates;
new text end

new text begin (3) cellular phone system coordinates;
new text end

new text begin (4) Internet protocol device address; or
new text end

new text begin (5) other mechanisms that can be used to identify an account holder's location.
new text end

new text begin (c) This chapter applies exclusively to social media platform operations that directly
impact account holders reasonably presumed to be located within the state of Minnesota
based on the factors in paragraph (b).
new text end

Sec. 29.

new text begin [325O.04] REQUIREMENTS FOR SOCIAL MEDIA PLATFORMS.
new text end

new text begin Subdivision 1. new text end

new text begin Content optimization. new text end

new text begin (a) A social media platform must provide an
accessible user interface that allows a user to clearly indicate whether a particular piece of
content:
new text end

new text begin (1) is of high or low quality; and
new text end

new text begin (2) complies with the user's expressed preferences.
new text end

new text begin (b) A social media platform's algorithmic ranking system must optimize content for a
user that:
new text end

new text begin (1) a varied set of account holders indicates is of high quality; and
new text end

new text begin (2) complies with a user's expressed preferences.
new text end

new text begin (c) A social media platform's algorithmic ranking system must not optimize content that
is not related to a user's expressed preferences in order to maximize the user's engagement
with the platform.
new text end

new text begin Subd. 2. new text end

new text begin Account interaction limits. new text end

new text begin (a) A social media platform must develop criteria
to designate an account holder who has recently created an account with or joined the social
platform as a new account holder. An account created within 30 days must be considered
a new account holder. For a new account holder, a social media platform must set daily
numerical limits on account interactions equivalent to the 50th percentile of all platform
account holders.
new text end

new text begin (b) For all account holders, a social media platform must set daily numerical limits on
account interactions equivalent to the two standard deviations above the median for all
platform account holders. A limit required under this paragraph may allow an account holder
to have account interactions in excess of the limit, but at a minimum must reduce the impact
of the engagement on other users. A limit may be exceeded for account interactions with
another user if the other user clearly initiates and welcomes the engagement.
new text end

new text begin Subd. 3. new text end

new text begin Default privacy settings. new text end

new text begin (a) A social media platform must provide default
settings for a user that do not:
new text end

new text begin (1) allow the user's account or the user's user-generated content to be discovered by
anyone outside the user's existing extended network;
new text end

new text begin (2) allow messaging, requests, reactions, comments, or other contact from an account
holder that is not already within the user's existing extended network, unless the user initiates
and welcomes the contact;
new text end

new text begin (3) reveal the user's location outside the user's existing network, unless the user
specifically shares the user's location outside the user's existing network;
new text end

new text begin (4) disseminate any information about the user, including the user's profile and any of
the user's user-generated content, to anyone outside of the user's existing network without
a specific request from the user to disseminate the information; or
new text end

new text begin (5) allow or facilitate a user's user-generated content, or any user's facial or biometric
data, to be incorporated into generative artificial intelligence models without the user's
explicit consent.
new text end

new text begin (b) The default settings required in paragraph (a) may be changed only to comply with
the user's expressed preferences. A social media platform must not utilize a system, user
interface, or prompt that encourages a user to change the user's privacy settings toward
allowing the user's information or user-generated content to be shared or disseminated more
broadly.
new text end

new text begin Subd. 4. new text end

new text begin Option for heightened protection. new text end

new text begin (a) A social media platform must provide
an accessible user interface to allow a user to opt in to any or all of the heightened protection
requirements under paragraph (d). A social media platform may make the heightened
protections the default settings for all users or all account holders.
new text end

new text begin (b) A device operating system provider must provide an option for a user to automatically
opt in to any or all of the heightened protection requirements under paragraph (d) across all
social media platforms managed by the operating system on the user's device. If a user
selects the option under this paragraph, the device operating system provider must inform
all social media platforms managed by the provider's operating system of the user's preference
and a notified social media platform must adjust the user's account settings accordingly. A
device operating system provider may provide a user the ability to opt out of any or all
heightened protections.
new text end

new text begin (c) A device operating system provider must, by default, consider any device with
parental controls enabled to have opted in to all the heightened protection requirements
under paragraph (d).
new text end

new text begin (d) For a user receiving heightened protections, a social media platform must not:
new text end

new text begin (1) use platform features that increase, sustain, or extend a user's engagement with the
platform beyond the user's expressed preferences regarding time or duration. Features subject
to this clause include but are not limited to:
new text end

new text begin (i) optimization for time spent or content consumed;
new text end

new text begin (ii) content feeds without finite endings;
new text end

new text begin (iii) autoplaying videos or other content; and
new text end

new text begin (iv) notifications that are not time sensitive; or
new text end

new text begin (2) provide any visible count showing how much engagement content that the user
viewed, consumed, or generated has received.
new text end

new text begin Subd. 5. new text end

new text begin Transparency requirements. new text end

new text begin (a) A social media platform must publicly post
the following information on the social media platform's website:
new text end

new text begin (1) an explanation of how the social media platform designates new account holders and
an explanation detailing the operation and effect of usage limits applicable to new account
holders under subdivision 2, paragraph (a);
new text end

new text begin (2) an explanation detailing the operation and effect of the usage limits required under
subdivision 2, paragraph (b);
new text end

new text begin (3) an explanation detailing how the platform:
new text end

new text begin (i) assesses users' perceptions of the quality of content;
new text end

new text begin (ii) assesses users' expressed preferences regarding content; and
new text end

new text begin (iii) utilizes the assessments under items (i) and (ii) in the social media platform's
algorithmic ranking system, including how the assessments are weighted in relation to other
signals in the algorithmic ranking system;
new text end

new text begin (4) statistics on the platform's use with respect to the tenth, 25th, 50th, 75th, 90th, 95th,
99th, and 99.9th percentile of all platform account holders for each distinct type of account
interaction or engagement, including but not limited to:
new text end

new text begin (i) sending invitations or messages to other platform account holders;
new text end

new text begin (ii) commenting on, resharing, liking, voting for, or otherwise reacting to content;
new text end

new text begin (iii) posting new user-generated content;
new text end

new text begin (iv) disseminating user-generated content to other platform account holders; and
new text end

new text begin (v) time spent on the platform;
new text end

new text begin (5) an explanation of how the platform determines whether a notification is time sensitive;
new text end

new text begin (6) an explanation of how the platform determines what constitutes a "varied set of
account holders," including what behaviors are used as signals and how any measurement
of difference is created and used; and
new text end

new text begin (7) a description of all product experiments that have been conducted on 1,000 or more
users, including the results of the product experiments on users' engagement with content
that:
new text end

new text begin (i) users indicate to be high or low quality;
new text end

new text begin (ii) users indicate complies or does not comply with the users' expressed preferences;
and
new text end

new text begin (iii) violates platform policies.
new text end

new text begin (b) Additional steps taken by a social media platform to prevent abusive use beyond
what must be publicly disclosed under paragraph (a) are encouraged and may, but are not
required to, be publicly disclosed.
new text end

new text begin (c) When automatically delivering, suggesting, or selecting content to a user, a social
media platform must provide an accessible user interface to allow the user to access a basic,
nontechnical explanation detailing why a particular piece of content was promoted by the
platform's algorithmic ranking system.
new text end

Sec. 30.

new text begin [325O.05] ENFORCEMENT.
new text end

new text begin The attorney general may bring a civil enforcement action and recover the relief provided
in section 8.31 against a social media platform that violates this chapter. Nothing in this
chapter establishes a private right of action, including under section 8.31, subdivision 3a,
for a violation of this chapter or any other law.
new text end

Sec. 31.

new text begin [325O.06] SEVERABILITY.
new text end

new text begin If any provision of this chapter or the chapter's application to any person or circumstance
is held invalid for any reason in a court of competent jurisdiction, the remainder of the
chapter or the application of the provision to other persons or circumstances is not affected.
new text end

Sec. 32.

Minnesota Statutes 2022, section 507.235, subdivision 1a, is amended to read:

Subd. 1a.

Requirements of vendor.

(a) A vendor entering into a contract for deed
involving residential real property must, contemporaneously with the execution of the
contract for deed deleted text begin :
deleted text end

deleted text begin (1) deleted text end deliver to the vendee a copy of the contract for deed containing original signatures
in recordable form deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) deleted text end new text begin (b) Within four months of executing the contract for deed, the vendor must:
new text end

new text begin (1) new text end pay deleted text begin , or reimburse the vendee for payment of, deleted text end any delinquent taxes necessary for
recordation of the contract for deed deleted text begin , unless the contract for deed provides for the vendee to
pay the delinquent taxes deleted text end new text begin ; and
new text end

new text begin (2) record the contract for deed in the office of the county recorder or registrar of titles
in the county in which the land is located new text end .

new text begin (c) The following statement included in a contract for deed for other than residential
real property constitutes prima facie evidence that this subdivision does not apply: "The
property is not residential real property."
new text end

new text begin (d) If the contract for deed is not in recordable form, within four months of the execution
of the contract for deed the vendor must make a good faith effort to correct the defects that
rendered the contract unrecordable. A good faith effort includes but is not limited to
determining the reason or reasons the contract was not in recordable form, and revising and,
if necessary, having all parties reexecute the contract to render it in recordable form. The
vendee must, in good faith, cooperate with the vendor to the extent that cooperation is
necessary to correct the defects.
new text end

deleted text begin (b) deleted text end new text begin (e) new text end For purposes of this subdivision:

(1) "contract for deed" means an executory contract for the conveyance of residential
real property under which the seller provides financing for the purchase of the residential
real property and under which the purchaser does or has a right to go into possession.
Contract for deed does not include:

(i) a purchase agreement;

(ii) an earnest money contract;

(iii) an exercised option or a lease, including a lease with an option to purchase; or

(iv) a mortgage, as defined in section 287.01; and

(2) "residential real property" means real property deleted text begin occupied, or intended to be occupied,
by one to four families, if the purchaser intends to occupy the real property. deleted text end new text begin consisting of
one to four family dwelling units, one of which is intended to be occupied as the principal
place of residence by:
new text end

new text begin (i) the purchaser;
new text end

new text begin (ii) if the purchaser is an entity, the natural person who is the majority or controlling
owner of the entity; or
new text end

new text begin (iii) if the purchaser is a trust, the settlor of the trust.
new text end

Residential real property does not include deleted text begin property subject to a family farm security loan deleted text end
deleted text begin or deleted text end a transaction subject to sections 583.20 to 583.32.

new text begin (f) The performance of the obligations by the vendor required under this subdivision
satisfies any of the obligations of the original vendee, as required under subdivision 1.
new text end

new text begin (g) The requirements of this subdivision may not be waived or altered by any provision
in a contract for deed. A provision in a contract for deed to the contrary is void and
unenforceable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end

Sec. 33.

Minnesota Statutes 2022, section 507.235, subdivision 5, is amended to read:

Subd. 5.

Civil enforcement.

(a) A city in which the land is located or, if the land is not
located within a city, the county in which the land is located, may enforce the provisions
of this section. The city or county may bring an action to compel the recording of a contract
for deed or any assignments of a contract for deed, an action to impose the civil penalty, or
an action to compel disclosure of information.

(b) Prior to bringing an action under this subdivision to compel recording or to impose
the penalty, deleted text begin or an action under subdivision 4, deleted text end the city or county must provide written notice
to the person, subject to subdivision 1, of the person's duty to record the contract for deed
or the assignment. If the person so notified fails to record the contract for deed or assignment
documents within 14 days of receipt of the notice, an action may be brought.

(c) It is an affirmative defense in an enforcement action under this section that the contract
for deed or assignment document is not recordable, or that section 272.121 prohibits the
recording of the contract for deed or assignment, and that the defendant has provided to the
city or county attorney true and correct copies of the documents within 14 days after receipt
of the notice.

(d) In an action brought under this subdivision, the city or county attorney may recover
costs and disbursements, including reasonable attorney fees.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2022, section 513.73, subdivision 3, is amended to read:

Subd. 3.

Private transfer fee.

"Private transfer fee" means a fee or charge required by
a private transfer fee obligation and payable upon the transfer of an interest in real property,
or payable for the right to make or accept the transfer, regardless of whether the fee or
charge is a fixed amount or is determined as a percentage of the value of the property, the
purchase price, or other consideration given for the transfer. The following are not private
transfer fees for purposes of this section:

(1) consideration payable by the grantee to the grantor for the interest in real property
being transferred, including any subsequent additional consideration for the property payable
by the grantee based upon any subsequent appreciation, development, or sale of the property,
provided that the additional consideration is payable on a onetime basis only, and the
obligation to make the payment does not bind successors in title to the property. For the
purposes of this clause, an interest in real property may include a separate mineral estate
and its appurtenant surface access rights;

(2) commission payable to a licensed real estate broker for the transfer of real property
pursuant to an agreement between the broker and the grantor or the grantee, including any
subsequent additional commission for that transfer payable by the grantor or the grantee
based upon any subsequent appreciation, development, or sale of the property;

(3) interest, charges, fees, or other amounts payable by a borrower to a lender pursuant
to a loan secured by a mortgage against real property, including but not limited to a fee
payable to the lender for consenting to an assumption of the loan or a transfer of the real
property subject to the mortgage, fees, or charges payable to the lender for estoppel letters
or certificates, and shared appreciation interest or profit participation or other consideration
and payable to the lender in connection with the loan;

(4) rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor
under a lease, including but not limited to a fee payable to the lessor for consenting to an
assignment, subletting, encumbrance, or transfer of the lease;

(5) consideration payable to the holder of an option to purchase an interest in real property
or the holder of a right of first refusal or first offer to purchase an interest in real property
for waiving, releasing, or not exercising the option or right upon the transfer of the property
to another person;

deleted text begin (6) consideration payable by a contract for deed vendee to the vendor pursuant to the
terms of a recorded contract for deed, including any subsequent additional consideration
for the property payable by the vendee based upon any subsequent appreciation, development,
or sale of the property;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end a tax, fee, charge, assessment, fine, or other amount payable to or imposed by a
governmental authority;

deleted text begin (8) deleted text end new text begin (7) new text end a fee, charge, assessment, fine, or other amount payable to a homeowner's
condominium, cooperative, mobile home, or property owner's association pursuant to a
declaration or covenant or law applicable to the association, including but not limited to
fees or charges payable for estoppel letters or certificates issued by the association or its
authorized agent;

deleted text begin (9) deleted text end new text begin (8) new text end a fee, a charge, an assessment, dues, a contribution, or other amount pertaining
to the purchase or transfer of a club membership relating to real property owned by the
member, including but not limited to any amount determined by reference to the value,
purchase price, or other consideration given for the transfer of the real property; and

deleted text begin (10) deleted text end new text begin (9) new text end a mortgage from the purchaser of real property granted to the seller or to a
licensed real estate broker.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 35.

Minnesota Statutes 2022, section 559.21, subdivision 2a, is amended to read:

Subd. 2a.

For post 7/31/1985 contract.

If a default occurs in the conditions of a contract
for the conveyance of real estate or an interest in real estate executed on or after August 1,
1985, that gives the seller a right to terminate it, the seller may terminate the contract by
serving upon the purchaser or the purchaser's personal representatives or assigns, within or
outside of the state, a notice specifying the conditions in which default has been made. The
notice must state that the contract will terminate 60 days, or a shorter period allowed new text begin or a
longer period required new text end in subdivision 4, after the service of the notice, unless prior to the
termination date the purchaser:

(1) complies with the conditions in default;

(2) makes all payments due and owing to the seller under the contract through the date
that payment is made;

(3) pays the costs of service of the notice, including the reasonable costs of service by
sheriff, public officer, or private process server; except payment of costs of service is not
required unless the seller notifies the purchaser of the actual costs of service by certified
mail to the purchaser's last known address at least ten days prior to the date of termination;

(4) except for earnest money contracts, purchase agreements, and exercised options,
pays two percent of any amount in default at the time of service, not including the final
balloon payment, any taxes, assessments, mortgages, or prior contracts that are assumed by
the purchaser; and

(5) new text begin if the contract for deed is executed on or after August 1, 2024, pays an amount to
apply on attorney fees actually expended or incurred of $1,000; new text end if the contract is executed
on or after August 1, 1999, new text begin and before August 1, 2024, new text end pays an amount to apply on deleted text begin attorneys' deleted text end new text begin
attorney new text end fees actually expended or incurred, of $250 if the amount in default is less than
$1,000, and of $500 if the amount in default is $1,000 or more; or if the contract is executed
before August 1, 1999, pays an amount to apply on deleted text begin attorneys' deleted text end new text begin attorney new text end fees actually expended
or incurred, of $125 if the amount in default is less than $750, and of $250 if the amount in
default is $750 or more; except that no amount for attorneys' fees is required to be paid
unless some part of the conditions of default has existed for at least 30 days prior to the date
of service of the notice.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 36.

Minnesota Statutes 2022, section 559.21, subdivision 4, is amended to read:

Subd. 4.

Law prevails over contract; procedure; conditions.

(a) The notice required
by this section must be given notwithstanding any provisions in the contract to the contrary,
except that new text begin (1) new text end earnest money contracts, purchase agreements, and exercised options that
are subject to this section may, unless by their terms they provide for a longer termination
period, be terminated on 30 days' notice, or may be canceled under section 559.217 new text begin and (2)
contracts for deed executed by an investor seller shall be terminated on 90 days' notice new text end . The
notice must be served within the state in the same manner as a summons in the district court,
and outside of the state, in the same manner, and without securing any sheriff's return of
not found, making any preliminary affidavit, mailing a copy of the notice or doing any other
preliminary act or thing whatsoever. Service of the notice outside of the state may be proved
by the affidavit of the person making the same, made before an authorized officer having
a seal, and within the state by such an affidavit or by the return of the sheriff of any county
therein.

(b) If a person to be served is a resident individual who has departed from the state, or
cannot be found in the state; or is a nonresident individual or a foreign corporation,
partnership, or association, service may be made by publication as provided in this paragraph.
Three weeks' published notice has the same effect as personal service of the notice. The
published notice must comply with subdivision 3 and state (1) that the person to be served
is allowed 90 days after the first date of publication of the notice to comply with the
conditions of the contract, and (2) that the contract will terminate 90 days after the first date
of publication of the notice, unless before the termination date the purchaser complies with
the notice. If the real estate described in the contract is actually occupied, then, in addition
to publication, a person in possession must be personally served, in like manner as the
service of a summons in a civil action in state district court, within 30 days after the first
date of publication of the notice. If an address of a person to be served is known, then within
30 days after the first date of publication of the notice a copy of the notice must be mailed
to the person's last known address by first class mail, postage prepaid.

(c) The contract is reinstated if, within the time mentioned, the person served:

(1) complies with the conditions in default;

(2) if subdivision 1d or 2a applies, makes all payments due and owing to the seller under
the contract through the date that payment is made;

(3) pays the costs of service as provided in subdivision 1b, 1c, 1d, or 2a;

(4) if subdivision 2a applies, pays two percent of the amount in default, not including
the final balloon payment, any taxes, assessments, mortgages, or prior contracts that are
assumed by the purchaser; and

(5) pays attorneys' fees as provided in subdivision 1b, 1c, 1d, or 2a.

(d) The contract is terminated if the provisions of paragraph (c) are not met.

(e) In the event that the notice was not signed by an attorney for the seller and the seller
is not present in the state, or cannot be found in the state, then compliance with the conditions
specified in the notice may be made by paying to the court administrator of the district court
in the county wherein the real estate or any part thereof is situated any money due and filing
proof of compliance with other defaults specified, and the court administrator of the district
court shall be deemed the agent of the seller for such purposes. A copy of the notice with
proof of service thereof, and the affidavit of the seller, the seller's agent or attorney, showing
that the purchaser has not complied with the terms of the notice, may be recorded with the
county recorder or registrar of titles, and is prima facie evidence of the facts stated in it; but
this section in no case applies to contracts for the sale or conveyance of lands situated in
another state or in a foreign country. If the notice is served by publication, the affidavit must
state that the affiant believes that the party to be served is not a resident of the state, or
cannot be found in the state, and either that the affiant has mailed a copy of the notice by
first class mail, postage prepaid, to the party's last known address, or that such address is
not known to the affiant.

new text begin (f) No notice under this section may be given for a contract for deed executed by an
investor seller unless, at least 30 days prior to the service of the notice, some part of the
conditions of default has existed and the investor seller has notified the purchaser of the
conditions of default by certified mail to the purchaser's last known address.
new text end

new text begin (g) For purposes of this subdivision, "investor seller" has the meaning given in section
559A.01, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 37.

Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Termination prohibited for certain transfers regarding residential real
property. new text end

new text begin (a) Notwithstanding any provisions in a contract for deed to the contrary, the
notice under this section may not be given and no other remedies may be exercised for any
contract for deed based on any of the following transfers:
new text end

new text begin (1) a transfer on death deed conveying or assigning the deceased purchaser's interest in
the property to a grantee beneficiary;
new text end

new text begin (2) a transfer by devise, descent, or operation of law on the death of a joint tenant occurs;
new text end

new text begin (3) a transfer by which the spouse or a child of the purchaser becomes an owner of the
property;
new text end

new text begin (4) a transfer resulting from a decree of a dissolution of marriage, legal separation
agreement, or from an incidental property settlement agreement, by which the spouse of
the purchaser becomes an owner of the property; or
new text end

new text begin (5) a transfer into an inter vivos trust by which the purchaser is and remains a beneficiary
and that does not relate to a transfer of rights of occupancy in the property.
new text end

new text begin (b) For the purposes of this subdivision, "contract for deed" has the meaning given in
section 507.235, subdivision 1a, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end

Sec. 38.

Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Termination prohibited if vendor fails to record contracts for deed
involving residential real property. new text end

new text begin (a) Notwithstanding subdivision 2a or any provision
to the contrary in a contract for deed, a vendor may not terminate a contract for deed under
this section if the contract has not been recorded as required under section 507.235,
subdivision 1a, paragraph (b), and the vendor has failed to make a good faith effort to record
the contract as provided under section 507.235, subdivision 1a, paragraph (d).
new text end

new text begin (b) Nothing contained in this subdivision prohibits judicial termination of a contract for
deed.
new text end

new text begin (c) For the purposes of this subdivision, "contract for deed" has the meaning given in
section 507.235, subdivision 1a, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end

Sec. 39.

Minnesota Statutes 2022, section 559.21, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Affidavit of seller constituting prima facie evidence. new text end

new text begin In any instance where
the copy of the notice of default, proof of service of the notice, and an affidavit showing
that the purchaser has not complied with the terms of the notice have been or may be
recorded, an affidavit of the seller, the seller's agent, or the attorney verified by a person
having knowledge of the facts and attesting that the seller is not an investor seller or that
the seller has complied with the requirements of subdivision 4, paragraph (f), may be recorded
with the county recorder or registrar of titles and is prima facie evidence of the facts stated
in the affidavit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end

Sec. 40.

Minnesota Statutes 2022, section 559.211, subdivision 1, is amended to read:

Subdivision 1.

Order; proceedings; security.

new text begin (a) new text end In an action arising under or in relation
to a contract for the conveyance of real estate or any interest therein, the district court,
notwithstanding the service or publication pursuant to the provisions of section 559.21 of
a notice of termination of the contract, has the authority at any time prior to the effective
date of termination of the contract and subject to the requirements of rule 65 of the Rules
of Civil Procedure for the District Courts to enter an order temporarily restraining or enjoining
further proceedings to effectuate the termination of the contract, including recording of the
notice of termination with proof of service, recording of an affidavit showing noncompliance
with the terms of the notice, taking any action to recover possession of the real estate, or
otherwise interfering with the purchaser's lawful use of the real estate. In the action, the
purchaser may plead affirmatively any matter that would constitute a defense to an action
to terminate the contract.

new text begin (b) new text end Upon a motion for a temporary restraining order the court has the discretion,
notwithstanding any rule of court to the contrary, to grant the order without requiring the
giving of any security or undertaking, and in exercising that discretion, the court shall
consider, as one factor, the moving party's ability to afford monetary security. Upon a motion
for a temporary injunction, the court shall condition the granting of the order either upon
the tender to the court or vendor of installments as they become due under the contract or
upon the giving of other security in a sum as the court deems proper. Upon written
application, the court may disburse from payments tendered to the court an amount the court
determines necessary to insure the timely payment of property taxes, property insurance,
installments of special assessments, mortgage installments, prior contract for deed
installments or other similar expenses directly affecting the real estate, or for any other
purpose the court deems just.

new text begin (c) new text end If a temporary restraining order or injunction is granted pursuant to this subdivision,
the contract shall not terminate until the expiration of 15 days after the entry of the order
or decision dissolving or modifying the temporary restraining order or injunction. new text begin If the
vendor has made an appearance and the restraining order or injunction is granted, the court
may award court filing fees, reasonable attorney fees, and costs of service to the purchaser.
new text end

new text begin (d) If the court subsequently grants permanent relief to the purchaser or determines by
final order or judgment that the notice of termination was invalid or the purchaser asserted
a valid defense, the purchaser is entitled to an order granting court filing fees, reasonable
attorney fees, and costs of service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 41.

Minnesota Statutes 2022, section 559.213, is amended to read:

559.213 PRIMA FACIE EVIDENCE OF TERMINATION.

The recording, heretofore or hereafter, of the copy of notice of default, proof of service
thereof, and the affidavit showing that the purchaser has not complied with the terms of the
notice, provided for by deleted text begin Minnesota Statutes 1941, deleted text end section 559.21, shall be prima facie evidence
that the contract referred to in such notice has been terminated. new text begin It is not necessary to pay
current or delinquent real estate taxes owed on the real property that is the subject of the
contract to record the documents required by this section, provided that the documents must
be first presented to the county auditor for entry upon the transfer record and must have
"Transfer Entered" noted in the documents over the county auditor's official signature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 42.

new text begin [559A.01] CONTRACTS FOR DEED INVOLVING INVESTOR SELLERS
AND RESIDENTIAL REAL PROPERTY; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to sections 559A.01
to 559A.05.
new text end

new text begin Subd. 2. new text end

new text begin Balloon payment. new text end

new text begin "Balloon payment" means a scheduled payment of principal,
interest, or both under a contract for deed that is significantly larger than the regular
installment payments and that may be due prior to the end of the contract term or may be
the final payment that satisfies the contract.
new text end

new text begin Subd. 3. new text end

new text begin Churning. new text end

new text begin "Churning" means the act of an investor seller executing a contract
for deed on or after August 1, 2024, if previously the investor had frequently or repeatedly
executed contracts for deed and subsequently terminated the contracts under section 559.21.
new text end

new text begin Subd. 4. new text end

new text begin Contract for deed. new text end

new text begin "Contract for deed" has the meaning given in section
507.235, subdivision 1a.
new text end

new text begin Subd. 5. new text end

new text begin Investor seller. new text end

new text begin (a) "Investor seller" means a person entering into a contract
for deed to sell residential real property or, in the event of a transfer or assignment of the
seller's interest, the holder of the interest.
new text end

new text begin (b) An investor seller does not include a person entering into a contract for deed who
is:
new text end

new text begin (1) a natural person who has owned and occupied the residential real property as the
natural person's primary residence for a continuous 12-month period at any time prior to
the execution of the contract for deed;
new text end

new text begin (2) any spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the natural person;
new text end

new text begin (3) a personal representative of the natural person;
new text end

new text begin (4) a devisee of the natural person;
new text end

new text begin (5) a grantee under a transfer on death deed made by the natural person;
new text end

new text begin (6) a trust whose settlor is the natural person;
new text end

new text begin (7) a trust whose beneficiary is (i) a natural person where the trust or the natural person,
or a combination of the two, has owned and the natural person has occupied the residential
real property as the natural person's primary residence for a continuous 12-month period at
any time prior to the execution of the contract for deed, or (ii) any spouse, parent, child,
sibling, grandparent, grandchild, uncle, aunt, niece, nephew, or cousin of the natural person;
new text end

new text begin (8) a natural person selling on contract for deed to any spouse, parent, child, sibling,
grandparent, grandchild, uncle, aunt, niece, nephew, or cousin;
new text end

new text begin (9) a bank, credit union, or residential mortgage originator that is under the supervision
of or regulated by the Office of the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, the National Credit Union Administration, or the Minnesota
Department of Commerce; and
new text end

new text begin (10) a natural person who has owned and leased the residential real property to the
purchaser for at least the prior two years.
new text end

new text begin (c) If, substantially contemporaneous with the execution of the contract for deed, the
seller's interest is assigned or transferred to a person who does not meet any of the
qualifications of paragraph (b), the assignee or transferee is deemed an investor seller who
has executed the contract for deed.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, partnership, corporation, limited
liability company, association, trust, or other legal entity, however organized.
new text end

new text begin Subd. 7. new text end

new text begin Purchase agreement. new text end

new text begin "Purchase agreement" means a purchase agreement for
a contract for deed, an earnest money contract, or an executed option contemplating that,
at closing, the investor seller and the purchaser will enter into a contract for deed.
new text end

new text begin Subd. 8. new text end

new text begin Purchaser. new text end

new text begin "Purchaser" means a person who executes a contract for deed to
purchase residential real property. Purchaser includes all purchasers who execute the same
contract for deed to purchase residential real property.
new text end

new text begin Subd. 9. new text end

new text begin Residential real property. new text end

new text begin "Residential real property" means real property
consisting of one to four family dwelling units, one of which is intended to be occupied as
the principal place of residence by:
new text end

new text begin (1) the purchaser;
new text end

new text begin (2) if the purchaser is an entity, the natural person who is the majority or controlling
owner of the entity; or
new text end

new text begin (3) if the purchaser is a trust, the settlor or beneficiary of the trust.
new text end

new text begin Residential real property does not include a transaction subject to sections 583.20 to 583.32.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end

Sec. 43.

new text begin [559A.02] APPLICABILITY.
new text end

new text begin This chapter applies only to residential real property where a purchaser is entering into
a contract for deed with an investor seller. Either of the following statements included in a
contract for deed in which the property is not residential real property or the seller is not an
investor seller constitutes prima facie evidence that this chapter does not apply to the contract
for deed: "The property is not residential real property" or "The seller is not an investor
seller." A person examining title to the property may rely on either statement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end

Sec. 44.

new text begin [559A.03] CONTRACTS FOR DEED INVOLVING INVESTOR SELLERS
AND RESIDENTIAL REAL PROPERTY; DISCLOSURES.
new text end

new text begin Subdivision 1. new text end

new text begin Disclosures required. new text end

new text begin (a) In addition to the disclosures required under
sections 513.52 to 513.61, an investor seller must deliver to a prospective purchaser the
disclosures specified under this section and instructions for cancellation as provided under
section 559A.04, subdivision 2, paragraph (b).
new text end

new text begin (b) The disclosures must be affixed to the front of any purchase agreement executed
between an investor seller and a prospective purchaser. The investor seller may not enter
into a contract for deed with a prospective purchaser earlier than ten calendar days after the
execution of the purchase agreement by all parties and provision by the investor seller of
the disclosures required under this section and instructions for cancellation as required under
section 559A.04, subdivision 2, paragraph (b).
new text end

new text begin (c) If there is no purchase agreement, an investor seller must provide the disclosures
required under this section to the prospective purchaser no less than ten calendar days before
the prospective purchaser executes the contract for deed. The disclosures must be provided
in a document separate from the contract for deed. The investor seller may not enter into a
contract for deed with a prospective purchaser earlier than ten calendar days after providing
the disclosures to the prospective purchaser.
new text end

new text begin (d) The first page of the disclosures must contain the disclosures required in subdivisions
2, 3, and 4, in that order. The title must be centered, be in bold, capitalized, and underlined
20-point type, and read "IMPORTANT INFORMATION YOU NEED TO KNOW." The
disclosures required under subdivisions 5 and 6 must follow in subsequent pages in that
order.
new text end

new text begin (e) The investor seller must acknowledge delivery and the purchaser must acknowledge
receipt of the disclosures by signing and dating the disclosures. The acknowledged disclosures
constitute prima facie evidence that the disclosures have been provided as required by this
section.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure of balloon payment. new text end

new text begin (a) The investor seller must disclose the
amount and due date of, if any, all balloon payments. For purposes of disclosure of a balloon
payment, the investor seller may assume that all prior scheduled payments were timely
made and no prepayments were made. If there is more than one balloon payment due, each
balloon payment must be listed separately.
new text end

new text begin (b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end

new text begin "BALLOON PAYMENT
new text end

new text begin This contract contains a lump-sum balloon payment or several balloon payments. When
the final balloon payment comes due, you may need to get a mortgage or other financing
to pay it off, or you will have to sell the property. Even if you are able to sell the property,
you may not get back all the money you paid for it.
new text end

new text begin If you cannot come up with this large amount - even if you have made all your monthly
payments - the seller can cancel the contract.
new text end

new text begin Amount of Balloon Payment new text end	new text begin When Balloon Payment is Due new text end
new text begin $ (amount) new text end	new text begin (month, year)" new text end

new text begin Subd. 3. new text end

new text begin Disclosure of price paid by investor seller to acquire property. new text end

new text begin (a) The
investor seller must disclose to the purchaser the purchase price and the date of earliest
acquisition of the property by the investor seller, unless the acquisition occurs more than
two years prior to the execution of the contract for deed.
new text end

new text begin (b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end

new text begin "INVESTOR SELLER'S PRICE TO BUY HOUSE BEING SOLD TO BUYER
new text end

new text begin Date Investor Seller Acquired Property:
new text end

new text begin (date seller acquired ownership)
new text end

new text begin Price Paid by Investor Seller to Acquire the Property:
new text end

new text begin $ (total purchase price paid by seller to acquire ownership)
new text end

new text begin Contract for Deed Purchase Price:
new text end

new text begin $ (total sale price to the purchaser under the contract)"
new text end

new text begin (c) For the purposes of this subdivision, unless the acquisition occurred more than two
years prior to the execution of the contract for deed, the person who first acquires the property
is deemed to be the same person as the investor seller where the person who first acquires
the property:
new text end

new text begin (1) is owned or controlled, in whole or in part, by the investor seller;
new text end

new text begin (2) owns or controls, in whole or in part, the investor seller;
new text end

new text begin (3) is under common ownership or control, in whole or in part, with the investor seller;
new text end

new text begin (4) is a spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the investor seller, or of the natural person who owns or controls, in whole or
in part, the investor seller; or
new text end

new text begin (5) is an entity owned or controlled, in whole or in part, by a person who is a spouse,
parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew, or cousin of the
investor seller, or of the natural person who owns or controls, in whole or in part, the investor
seller.
new text end

new text begin Subd. 4. new text end

new text begin Disclosure of other essential terms. new text end

new text begin (a) An investor seller must disclose to
the prospective purchaser the purchase price, the annual interest rate, the amount of any
down payment, and whether the purchaser is responsible for any or all of the following:
paying property taxes, acquiring homeowner's insurance, making repairs, and maintaining
the property.
new text end

new text begin (b) The disclosure must be in the following form, with the title in 14-point type and the
text in 12-point type:
new text end

new text begin "COSTS AND ESSENTIAL TERMS
new text end

new text begin 1. Purchase Price: new text end	new text begin $ (price) new text end
new text begin 2. Annual Interest Rate: new text end	new text begin (interest rate) % new text end
new text begin 3. Down Payment: new text end	new text begin $ (down payment) new text end
new text begin 4. Monthly/Period Installments: new text end	new text begin $ (amount of installment payment) new text end
new text begin 5. Taxes, Homeowner's Insurance, Repairs and Maintenance: new text end

new text begin You (seller must circle one):
new text end

new text begin (a) DO new text end	new text begin DO NOT new text end	new text begin have to pay property taxes new text end
new text begin (b) DO new text end	new text begin DO NOT new text end	new text begin have to pay homeowner's insurance new text end
new text begin (c) ARE new text end	new text begin ARE NOT new text end	new text begin responsible for repairs and maintenance." new text end

new text begin Subd. 5. new text end

new text begin General disclosure. new text end

new text begin (a) An investor seller must provide the prospective
purchaser with a general disclosure about contracts for deeds as provided in this subdivision.
new text end

new text begin (b) The disclosure must be in the following form, with the title in 18-point type, the titles
of the sections in 14-point type and underlined, and the text of each section in 12-point type,
with a double space between each section:
new text end

new text begin "KNOW WHAT YOU ARE GETTING INTO BEFORE YOU SIGN
new text end

new text begin 1. How Contracts for Deed Work
new text end

new text begin A contract for deed is a complicated legal arrangement. Be sure you know exactly what
you are getting into before you sign a contract for deed. A contract for deed is NOT a
mortgage. Minnesota's foreclosure protections do NOT apply.
new text end

new text begin You should get advice from a lawyer or the Minnesota Homeownership Center
before you sign the contract. You can contact the Homeownership Center at
1-(866)-462-6466 or go to www.hocmn.org.
new text end

new text begin 2. What If I Can't Make My Payments?
new text end

new text begin If you do not make your monthly installment payment or the balloon payment, the seller
can cancel the contract beginning only 120 days from the date you missed the payment. If
the contract is canceled, you lose your home and all the money you have paid, including
any down payment, all the monthly payments, and any improvements to the property
you have made.
new text end

new text begin If the contract contains a final lump-sum balloon payment, you will need to get a mortgage
or other financing to pay it off, or you will have to sell the property. If you can't come up
with this large amount - even if you have made all your monthly payments - the seller can
cancel the contract. Even if you are able to sell the property, you may not get back all
the money you have paid for it.
new text end

new text begin 3. BEFORE YOU SIGN, YOU SHOULD:
new text end

new text begin A. Get an Independent, Professional Appraisal of the property to learn what it is
worth and make sure you are not overpaying for the house.
new text end

new text begin B. Get an Independent, Professional Inspection of the property because you will
probably be responsible for maintaining and making repairs on the house.
new text end

new text begin C. Buy Title Insurance from a title insurance company or ask a lawyer for a "title
opinion" to address or minimize potential title problems.
new text end

new text begin 4. YOUR RIGHTS BEFORE YOU SIGN
new text end

new text begin A. Waiting Period After Getting Disclosures. There is a ten calendar day waiting
period after you get these disclosures. The contract for deed cannot be signed by you or the
seller during that ten calendar day period.
new text end

new text begin B. Canceling a Purchase Agreement. You have ten calendar days after you get these
disclosures to cancel your purchase agreement and get back any money you paid."
new text end

new text begin Subd. 6. new text end

new text begin Amortization schedule. new text end

new text begin In a document separate from all other documents, an
investor seller must provide to the prospective purchaser an amortization schedule consistent
with the contract for deed, including the portion of each installment payment applied to
interest and to principal and the amount and due date of any balloon payments.
new text end

new text begin Subd. 7. new text end

new text begin Disclosures in other languages. new text end

new text begin If the contract was advertised or primarily
negotiated with the purchaser in a language other than English, the investor seller must
provide the disclosures required in this section in the language in which the contract was
advertised or primarily negotiated.
new text end

new text begin Subd. 8. new text end

new text begin No waiver. new text end

new text begin The provisions of this section may not be waived.
new text end

new text begin Subd. 9. new text end

new text begin Effects of violation. new text end

new text begin Except as provided in section 559A.05, subdivision 2, a
violation of this section has no effect on the validity of the contract for deed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end

Sec. 45.

new text begin [559A.04] CONTRACTS FOR DEED INVOLVING INVESTOR SELLERS
AND RESIDENTIAL REAL PROPERTY; RIGHTS AND REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement of investor seller if property subject to mortgage. new text end

new text begin An
investor may not execute a contract for deed that is subject to a mortgage with a due-on-sale
clause and not expressly assumed by the contract for deed purchaser unless the investor
seller has:
new text end

new text begin (1) procured a binding agreement with the mortgage holder whereby the holder either
consents to the sale of the property to the purchaser by contract for deed or agrees to not
exercise the holder's rights under a due-on-sale clause in the mortgage based on the contract
for deed; and
new text end

new text begin (2) in the contract:
new text end

new text begin (i) disclosed the existence of the investor seller's mortgage;
new text end

new text begin (ii) covenants that the investor seller will perform all obligations under the mortgage;
and
new text end

new text begin (iii) expressly represents to the purchaser that the seller has procured the binding
agreement required under clause (1).
new text end

new text begin Subd. 2. new text end

new text begin Right to cancel purchase agreement. new text end

new text begin (a) A prospective purchaser may cancel
a purchase agreement prior to the execution by all parties of the contract for deed or within
ten calendar days of receiving the disclosures required under section 559A.03, whichever
is earlier. A purchaser's execution of the contract for deed earlier than ten calendar days of
receiving the disclosures does not excuse, constitute a waiver of, or constitute a defense by
an investor seller regarding the seller's violation of section 559A.03, subdivision 1, paragraph
(b) or (c).
new text end

new text begin (b) In addition to the disclosures required under section 559A.03, an investor seller must
provide the prospective purchaser with notice of the person to whom, and the mailing address
to where, cancellation of the purchase agreement must be delivered or sent. Cancellation
of the purchase agreement is effective upon personal delivery or upon mailing.
new text end

new text begin (c) In the event of cancellation or if no purchase agreement has been signed and the
prospective purchaser elects not to execute the contract for deed, the investor seller may
not impose a penalty or fee and must promptly refund all payments made by the prospective
purchaser.
new text end

new text begin Subd. 3. new text end

new text begin Duty of investor seller to account. new text end

new text begin The investor seller must inform the purchaser
in a separate writing of the right to request an annual accounting. Upon reasonable written
request by the purchaser and no more than once every calendar year, an investor seller must
provide an accounting of:
new text end

new text begin (1) all payments made pursuant to the contract for deed during the prior calendar year
with payments allocated between interest and principal;
new text end

new text begin (2) any delinquent payments;
new text end

new text begin (3) the total principal amount remaining to satisfy the contract for deed; and
new text end

new text begin (4) the anticipated amounts and due dates of all balloon payments.
new text end

new text begin Subd. 4. new text end

new text begin Churning prohibited. new text end

new text begin (a) An investor seller is prohibited from churning. There
is a rebuttable presumption that the investor seller has violated this subdivision if, on or
after August 1, 2024, the investor seller executes a contract for deed and, within the previous
48 months, the investor seller either:
new text end

new text begin (1) had completed two or more termination proceedings under section 559.21 on the
same residential real property being sold by the contract for deed; or
new text end

new text begin (2) had completed four or more termination proceedings under section 559.21 on contracts
for deed for any residential real property, where terminated contracts comprise 20 percent
or more of all contracts executed by the investor seller during that period.
new text end

new text begin (b) Nothing contained in this subdivision or in section 559A.01, subdivision 3, shall
invalidate, impair, affect, or give rise to any cause of action with respect to any contract for
deed or termination proceeding under section 559.21 used as a predicate to establish the
presumption under paragraph (a).
new text end

new text begin (c) For the purposes of this subdivision, a person who sold residential real property on
a contract for deed is deemed to be the same person as the investor seller where the person
who sold on a contract for deed:
new text end

new text begin (1) is owned or controlled, in whole or in part, by the investor seller;
new text end

new text begin (2) owns or controls, in whole or in part, the investor seller;
new text end

new text begin (3) is under common ownership or control, in whole or in part, with the investor seller;
new text end

new text begin (4) is a spouse, parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew,
or cousin of the investor seller, or of the natural person who owns or controls, in whole or
in part, the investor seller; or
new text end

new text begin (5) is an entity owned or controlled, in whole or in part, by a person who is a spouse,
parent, child, sibling, grandparent, grandchild, uncle, aunt, niece, nephew, or cousin of the
investor seller, or of the natural person who owns or controls, in whole or in part, the investor
seller.
new text end

new text begin Subd. 5. new text end

new text begin Duty of investor seller to refund down payments. new text end

new text begin (a) If an investor seller
terminates under section 559.21 a contract for deed within 48 months of executing the
contract, any portion of the down payment that exceeded ten percent of the purchase price
shall be refunded to the purchaser within 180 days of the termination of the contract.
new text end

new text begin (b) Upon delivery to the purchaser by the investor seller of reasonable documentation
that the following expenses were incurred or taxes and contract payments were unpaid, an
investor seller may offset against the refund, if applicable, for:
new text end

new text begin (1) unpaid property taxes for the period prior to termination of the contract;
new text end

new text begin (2) unpaid insurance premiums for the period prior to termination of the contract incurred
by the investor seller;
new text end

new text begin (3) the reasonable cost of necessary repairs for damage to the residential real property
caused by the purchaser, beyond ordinary wear and tear, incurred by the investor seller;
new text end

new text begin (4) attorney fees, not to exceed $1,000, and costs of service incurred in connection with
the termination of the contract;
new text end

new text begin (5) unpaid utility arrears for the period prior to termination of the contract incurred by
the investor seller; and
new text end

new text begin (6) one-half of the unpaid monthly contract installment payments, excluding balloon
payments, that accrued prior to termination of the contract.
new text end

new text begin (c) If the purchaser disputes the amount that an investor seller claims as the refund or
an offset, the purchaser may commence an action in district court or conciliation court to
determine the amount of the refund or the offsets and recover any money owed by the
investor seller to the purchaser. The purchaser is entitled to recover from the investor seller
any portion of the down payment that the court finds is owed by the investor seller to the
purchaser and not previously paid to the purchaser. An attorney expressly authorized by
the investor seller to receive payments in the notice of termination is designated as the
attorney who may receive service as agent for the investor seller in an action under this
paragraph in the same manner as provided in section 559.21, subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to contracts
for deed executed by all parties on or after that date.
new text end

Sec. 46.

new text begin [559A.05] CONTRACTS FOR DEED INVOLVING INVESTOR SELLERS
AND RESIDENTIAL REAL PROPERTY; REMEDIES FOR VIOLATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "material violation of section
559A.03" means:
new text end

new text begin (1) if applicable, failure to disclose any balloon payment as required under section
559A.03, subdivision 2;
new text end

new text begin (2) failure to disclose the price paid by the investor seller under the contract for deed to
acquire property as required under section 559A.03, subdivision 3;
new text end

new text begin (3) failure to disclose the other essential terms of the contract as required under section
559A.03, subdivision 4;
new text end

new text begin (4) failure to provide the general disclosure in substantially the form required under
section 559A.03, subdivision 5;
new text end

new text begin (5) failure to disclose the amortization schedule as required under section 559A.03,
subdivision 6;
new text end

new text begin (6) a violation of section 559A.03, subdivision 1, paragraph (b) or (c);
new text end

new text begin (7) a violation of section 559A.03, subdivision 7; or
new text end

new text begin (8) a material omission or misstatement of any of the information required to be disclosed
under section 559A.03.
new text end

new text begin Subd. 2. new text end

new text begin Remedy for violation of disclosure requirements or churning. new text end

new text begin (a)
Notwithstanding any provision in the purchase agreement or contract for deed to the contrary,
a purchaser may, within two years of the execution of the contract for deed, bring an action
for relief for a material violation of section 559A.03 or a violation of section 559A.04,
subdivision 4. A prevailing purchaser may rescind a contract and, in conjunction with the
rescission, may recover against the investor seller a sum equal to:
new text end

new text begin (1) all amounts paid by the purchaser under the contract for deed, including payments
to third parties, less the fair rental value of the residential real property for the period of
time the purchaser was in possession of the property;
new text end

new text begin (2) the reasonable value of any improvements to the residential real property made by
the purchaser;
new text end

new text begin (3) actual, consequential, and incidental damages; and
new text end

new text begin (4) reasonable attorney fees and costs.
new text end

new text begin (b) A claim for rescission and a money judgment awarded under this subdivision does
not affect any rights or responsibilities of a successor in interest to the investor seller prior
to the filing of a lis pendens in the action in which relief is sought, unless it is established
by clear and convincing evidence that the successor in interest had prior knowledge that
the contract for deed was executed in violation of the requirements of section 559A.03 or
559A.04, subdivision 4.
new text end

new text begin (c) A purchaser barred under paragraph (b) from making a claim against a successor in
interest to the investor seller may, within two years of the execution of the contract for deed,
bring a claim for violation of the requirements of section 559A.03 or 559A.04, subdivision
4, against the original investor seller who entered into the contract for deed and may recover
the greater of actual damages or statutory damages of $5,000, plus reasonable attorney fees
and costs. The original investor seller has no claim for indemnification or contribution
against the successor in interest.
new text end

new text begin Subd. 3. new text end

new text begin Remedy for failure of investor seller to procure agreement with mortgage
holder. new text end

new text begin (a) If a mortgage holder commences foreclosure of the mortgage holder's mortgage
based on the sale to a purchaser under the contract for deed and notwithstanding any provision
in the purchase agreement or contract for deed to the contrary, a purchaser may bring an
action for the failure of the investor seller to procure the agreement with the mortgage holder
as required under section 559A.04, subdivision 2. A prevailing purchaser may rescind a
contract and may recover against the investor seller a sum equal to:
new text end

new text begin (1) all amounts paid by the purchaser under the contract for deed, including payments
to third parties, less the fair rental value of the residential real property for the period of
time the purchaser was in possession of the property;
new text end

new text begin (2) the reasonable value of any improvements to the residential real property made by
the purchaser;
new text end

new text begin (3) actual, consequential, and incidental damages; and
new text end

new text begin (4) reasonable attorney fees and costs.
new text end

new text begin (b) An action under this subdivision may be brought at any time and is not subject to
the statute of limitations in subdivision 2, provided that at least 30 days prior to bringing
the action, a purchaser must deliver a notice of violation to the investor seller under the
contract for deed personally or by United States mail.
new text end

new text begin (c) An investor seller may cure the violation at any time prior to entry of a final judgment
by delivering to the purchaser either evidence of the agreement with the mortgage holder
as required under section 559A.04, subdivision 2, or evidence that the mortgage holder has
abandoned foreclosure of the mortgage. If the violation is cured, the purchaser's action must
be dismissed. An investor seller is liable to the purchaser for reasonable attorney fees and
court costs if the seller delivers evidence of the mortgage holder's agreement or abandonment
of the foreclosure after the purchaser has commenced the action.
new text end

new text begin (d) Nothing in this subdivision bars or limits any other claim by a purchaser arising from
the investor seller's breach of a senior mortgage.
new text end

new text begin Subd. 4. new text end

new text begin Defense to termination. new text end

new text begin A purchaser's right to the remedy under subdivision
2 or 3 constitutes grounds for injunctive relief under section 559.211.
new text end

new text begin Subd. 5. new text end

new text begin Effect of action on title. new text end

new text begin An action under subdivision 2 or 3 is personal to the
purchaser only, does not constitute an interest separate from the purchaser's interest in the
contract for deed, and may not be assigned except to a successor in interest.
new text end

new text begin Subd. 6. new text end

new text begin Rights cumulative. new text end

new text begin The rights and remedies provided in this section are
cumulative to, and not a limitation of, any other rights and remedies provided under law
and at equity. Nothing in this chapter precludes a court from construing a contract for deed
as an equitable mortgage.
new text end

new text begin Subd. 7. new text end

new text begin Public enforcement. new text end

new text begin The attorney general has authority under section 8.31 to
investigate and prosecute violations of sections 559A.03 and 559A.04, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to all contracts
for deed executed by all parties on or after that date.
new text end

Sec. 47. new text begin RULEMAKING.
new text end

new text begin The commissioner of commerce must adopt rules to conform with the changes made to
Minnesota Statutes, sections 80A.66 and 80C.05, subdivision 3, in this article with respect
to investment adviser registration continuing education and franchise fees deferral,
respectively. The commissioner of commerce may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend the rule under this
section, and Minnesota Statutes, section 14.386, does not apply except as provided under
Minnesota Statutes, section 14.388.
new text end

Sec. 48. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 45.014; 239.791, subdivision 3; 559.201; and
559.202, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, section 82B.25, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2023 Supplement, section 53B.58, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective January 1, 2026.
new text end

ARTICLE 2

MONETARY AND FINANCIAL INSTITUTION POLICY

Section 1.

new text begin [46A.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Authorized user. new text end

new text begin "Authorized user" means any employee, contractor, agent,
or other person who: (1) participates in a financial institution's business operations; and (2)
is authorized to access and use any of the financial institution's information systems and
data.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin (a) "Consumer" means an individual who obtains or has obtained
from a financial institution a financial product or service that is used primarily for personal,
family, or household purposes, or is used by the individual's legal representative. Consumer
includes but is not limited to an individual who:
new text end

new text begin (1) applies to a financial institution for credit for personal, family, or household purposes,
regardless of whether the credit is extended;
new text end

new text begin (2) provides nonpublic personal information to a financial institution in order to obtain
a determination whether the individual qualifies for a loan used primarily for personal,
family, or household purposes, regardless of whether the loan is extended;
new text end

new text begin (3) provides nonpublic personal information to a financial institution in connection with
obtaining or seeking to obtain financial, investment, or economic advisory services, regardless
of whether the financial institution establishes a continuing advisory relationship with the
individual; or
new text end

new text begin (4) has a loan for personal, family, or household purposes in which the financial institution
has ownership or servicing rights, even if the financial institution or one or more other
institutions that hold ownership or servicing rights in conjunction with the financial institution
hires an agent to collect on the loan.
new text end

new text begin (b) Consumer does not include an individual who:
new text end

new text begin (1) is a consumer of another financial institution that uses a different financial institution
to act solely as an agent for, or provide processing or other services to, the consumer's
financial institution;
new text end

new text begin (2) designates a financial institution solely for the purposes to act as a trustee for a trust;
new text end

new text begin (3) is the beneficiary of a trust for which the financial institution serves as trustee; or
new text end

new text begin (4) is a participant or a beneficiary of an employee benefit plan that the financial
institution sponsors or for which the financial institution acts as a trustee or fiduciary.
new text end

new text begin Subd. 5. new text end

new text begin Continuing relationship. new text end

new text begin (a) "Continuing relationship" means a consumer:
new text end

new text begin (1) has a credit or investment account with a financial institution;
new text end

new text begin (2) obtains a loan from a financial institution;
new text end

new text begin (3) purchases an insurance product from a financial institution;
new text end

new text begin (4) holds an investment product through a financial institution, including but not limited
to when the financial institution acts as a custodian for securities or for assets in an individual
retirement arrangement;
new text end

new text begin (5) enters into an agreement or understanding with a financial institution whereby the
financial institution undertakes to arrange or broker a home mortgage loan, or credit to
purchase a vehicle, for the consumer;
new text end

new text begin (6) enters into a lease of personal property on a nonoperating basis with a financial
institution;
new text end

new text begin (7) obtains financial, investment, or economic advisory services from a financial
institution for a fee;
new text end

new text begin (8) becomes a financial institution's client to obtain tax preparation or credit counseling
services from the financial institution;
new text end

new text begin (9) obtains career counseling while: (i) seeking employment with a financial institution
or the finance, accounting, or audit department of any company; or (ii) employed by a
financial institution or department of any company;
new text end

new text begin (10) is obligated on an account that a financial institution purchases from another financial
institution, regardless of whether the account is in default when purchased, unless the
financial institution does not locate the consumer or attempt to collect any amount from the
consumer on the account;
new text end

new text begin (11) obtains real estate settlement services from a financial institution; or
new text end

new text begin (12) has a loan for which a financial institution owns the servicing rights.
new text end

new text begin (b) Continuing relationship does not include situations where:
new text end

new text begin (1) the consumer obtains a financial product or service from a financial institution only
in isolated transactions, including but not limited to: (i) using a financial institution's
automated teller machine to withdraw cash from an account at another financial institution;
(ii) purchasing a money order from a financial institution; (iii) cashing a check with a
financial institution; or (iv) making a wire transfer through a financial institution;
new text end

new text begin (2) a financial institution sells the consumer's loan and does not retain the rights to service
the loan;
new text end

new text begin (3) a financial institution sells the consumer airline tickets, travel insurance, or traveler's
checks in isolated transactions;
new text end

new text begin (4) the consumer obtains onetime personal or real property appraisal services from a
financial institution; or
new text end

new text begin (5) the consumer purchases checks for a personal checking account from a financial
institution.
new text end

new text begin Subd. 6. new text end

new text begin Customer. new text end

new text begin "Customer" means a consumer who has a customer relationship
with a financial institution.
new text end

new text begin Subd. 7. new text end

new text begin Customer information. new text end

new text begin "Customer information" means any record containing
nonpublic personal information about a financial institution's customer, whether the record
is in paper, electronic, or another form, that is handled or maintained by or on behalf of the
financial institution or the financial institution's affiliates.
new text end

new text begin Subd. 8. new text end

new text begin Customer relationship. new text end

new text begin "Customer relationship" means a continuing relationship
between a consumer and a financial institution under which the financial institution provides
to the consumer one or more financial products or services that are used primarily for
personal, family, or household purposes.
new text end

new text begin Subd. 9. new text end

new text begin Encryption. new text end

new text begin "Encryption" means the transformation of data into a format that
results in a low probability of assigning meaning without the use of a protective process or
key, consistent with current cryptographic standards and accompanied by appropriate
safeguards for cryptographic key material.
new text end

new text begin Subd. 10. new text end

new text begin Federally insured depository financial institution. new text end

new text begin "Federally insured
depository financial institution" means a bank, credit union, savings and loan association,
trust company, savings association, savings bank, industrial bank, or industrial loan company
organized under the laws of the United States or any state of the United States, when the
bank, credit union, savings and loan association, trust company, savings association, savings
bank, industrial bank, or industrial loan company has federally insured deposits.
new text end

new text begin Subd. 11. new text end

new text begin Financial product or service. new text end

new text begin "Financial product or service" means any
product or service that a financial holding company could offer by engaging in a financial
activity under section 4(k) of the Bank Holding Company Act of 1956, United States Code,
title 12, section 1843(k). Financial product or service includes a financial institution's
evaluation or brokerage of information that the financial institution collects in connection
with a request or an application from a consumer for a financial product or service.
new text end

new text begin Subd. 12. new text end

new text begin Financial institution. new text end

new text begin "Financial institution" means a consumer small loan
lender under section 47.60, a person owning or maintaining electronic financial terminals
under section 47.62, a trust company under chapter 48A, a loan and thrift company under
chapter 53, a currency exchange under chapter 53A, a money transmitter under chapter 53B,
a sales finance company under chapter 53C, a regulated loan lender under chapter 56, a
residential mortgage originator or servicer under chapter 58, a student loan servicer under
chapter 58B, a credit service organization under section 332.54, a debt management service
provider or person providing debt management services under chapter 332A, or a debt
settlement service provider or person providing debt settlement services under chapter 332B.
new text end

new text begin Subd. 13. new text end

new text begin Information security program. new text end

new text begin "Information security program" means the
administrative, technical, or physical safeguards a financial institution uses to access, collect,
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle customer
information.
new text end

new text begin Subd. 14. new text end

new text begin Information system. new text end

new text begin "Information system" means a discrete set of electronic
information resources organized to collect, process, maintain, use, share, disseminate, or
dispose of electronic information, as well as any specialized system, including but not
limited to industrial process controls systems, telephone switching and private branch
exchange systems, and environmental controls systems, that contains customer information
or that is connected to a system that contains customer information.
new text end

new text begin Subd. 15. new text end

new text begin Multifactor authentication. new text end

new text begin "Multifactor authentication" means authentication
through verification of at least two of the following factors:
new text end

new text begin (1) knowledge factors, including but not limited to a password;
new text end

new text begin (2) possession factors, including but not limited to a token; or
new text end

new text begin (3) inherence factors, including but not limited to biometric characteristics.
new text end

new text begin Subd. 16. new text end

new text begin Nonpublic personal information. new text end

new text begin (a) "Nonpublic personal information"
means:
new text end

new text begin (1) personally identifiable financial information; or
new text end

new text begin (2) any list, description, or other grouping of consumers, including publicly available
information pertaining to the list, description, or other grouping of consumers, that is derived
using personally identifiable financial information that is not publicly available.
new text end

new text begin (b) Nonpublic personal information includes but is not limited to any list of individuals'
names and street addresses that is derived in whole or in part using personally identifiable
financial information that is not publicly available, including account numbers.
new text end

new text begin (c) Nonpublic personal information does not include:
new text end

new text begin (1) publicly available information, except as included on a list described in paragraph
(a), clause (2);
new text end

new text begin (2) any list, description, or other grouping of consumers, including publicly available
information pertaining to the list, description, or other grouping of consumers, that is derived
without using any personally identifiable financial information that is not publicly available;
or
new text end

new text begin (3) any list of individuals' names and addresses that contains only publicly available
information, is not derived in whole or in part using personally identifiable financial
information that is not publicly available, and is not disclosed in a manner that indicates
that any individual on the list is the financial institution's consumer.
new text end

new text begin Subd. 17. new text end

new text begin Notification event. new text end

new text begin "Notification event" means the acquisition of unencrypted
customer information without the authorization of the individual to which the information
pertains. Customer information is considered unencrypted for purposes of this subdivision
if the encryption key was accessed by an unauthorized person. Unauthorized acquisition is
presumed to include unauthorized access to unencrypted customer information unless the
financial institution has reliable evidence showing that there has not been, or could not
reasonably have been, unauthorized acquisition of customer information.
new text end

new text begin Subd. 18. new text end

new text begin Penetration testing. new text end

new text begin "Penetration testing" means a test methodology in which
assessors attempt to circumvent or defeat the security features of an information system by
attempting to penetrate databases or controls from outside or inside a financial institution's
information systems.
new text end

new text begin Subd. 19. new text end

new text begin Personally identifiable financial information. new text end

new text begin (a) "Personally identifiable
financial information" means any information:
new text end

new text begin (1) a consumer provides to a financial institution to obtain a financial product or service;
new text end

new text begin (2) about a consumer resulting from any transaction involving a financial product or
service between a financial institution and a consumer; or
new text end

new text begin (3) a financial institution otherwise obtains about a consumer in connection with providing
a financial product or service to the customer.
new text end

new text begin (b) Personally identifiable financial information includes:
new text end

new text begin (1) information a consumer provides to a financial institution on an application to obtain
a loan, credit card, or other financial product or service;
new text end

new text begin (2) account balance information, payment history, overdraft history, and credit or debit
card purchase information;
new text end

new text begin (3) the fact that an individual is or has been a financial institution's customer or has
obtained a financial product or service from the financial institution;
new text end

new text begin (4) any information about a financial institution's consumer, if the information is disclosed
in a manner that indicates that the individual is or has been the financial institution's
consumer;
new text end

new text begin (5) any information that a consumer provides to a financial institution or that a financial
institution or a financial institution's agent otherwise obtains in connection with collecting
on or servicing a credit account;
new text end

new text begin (6) any information a financial institution collects through an Internet information
collecting device from a web server; and
new text end

new text begin (7) information from a consumer report.
new text end

new text begin (c) Personally identifiable financial information does not include:
new text end

new text begin (1) a list of customer names and addresses for an entity that is not a financial institution;
and
new text end

new text begin (2) information that does not identify a consumer, including but not limited to aggregate
information or blind data that does not contain personal identifiers, including account
numbers, names, or addresses.
new text end

new text begin Subd. 20. new text end

new text begin Publicly available information. new text end

new text begin (a) "Publicly available information" means
any information that a financial institution has a reasonable basis to believe is lawfully made
available to the general public from:
new text end

new text begin (1) federal, state, or local government records;
new text end

new text begin (2) widely distributed media; or
new text end

new text begin (3) disclosures to the general public that are required under federal, state, or local law.
new text end

new text begin (b) Publicly available information includes but is not limited to:
new text end

new text begin (1) with respect to government records, information in government real estate records
and security interest filings; and
new text end

new text begin (2) with respect to widely distributed media, information from a telephone book, a
television or radio program, a newspaper, or a website that is available to the general public
on an unrestricted basis. A website is not restricted merely because an Internet service
provider or a site operator requires a fee or a password, provided that access is available to
the general public.
new text end

new text begin (c) For purposes of this subdivision, a financial institution has a reasonable basis to
believe that information is lawfully made available to the general public if the financial
institution has taken steps to determine: (1) that the information is of the type that is available
to the general public; and (2) whether an individual can direct that the information not be
made available to the general public and, if so, that the financial institution's consumer has
not directed that the information not be made available to the general public. A financial
institution has a reasonable basis to believe that mortgage information is lawfully made
available to the general public if the financial institution determines the information is of
the type included on the public record in the jurisdiction where the mortgage would be
recorded. A financial institution has a reasonable basis to believe that an individual's
telephone number is lawfully made available to the general public if the financial institution
has located the telephone number in the telephone book or the consumer has informed the
financial institution that the telephone number is not unlisted.
new text end

new text begin Subd. 21. new text end

new text begin Qualified individual. new text end

new text begin "Qualified individual" means the individual designated
by a financial institution to oversee, implement, and enforce the financial institution's
information security program.
new text end

new text begin Subd. 22. new text end

new text begin Security event. new text end

new text begin "Security event" means an event resulting in unauthorized
access to, or disruption or misuse of: (1) an information system or information stored on an
information system; or (2) customer information held in physical form.
new text end

new text begin Subd. 23. new text end

new text begin Service provider. new text end

new text begin "Service provider" means any person or entity that receives,
maintains, processes, or otherwise is permitted access to customer information through the
service provider's provision of services directly to a financial institution that is subject to
this chapter.
new text end

Sec. 2.

new text begin [46A.02] SAFEGUARDING CUSTOMER INFORMATION; STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Information security program. new text end

new text begin (a) A financial institution must develop,
implement, and maintain a comprehensive information security program.
new text end

new text begin (b) The information security program must: (1) be written in one or more readily
accessible parts; and (2) contain administrative, technical, and physical safeguards that are
appropriate to the financial institution's size and complexity, the nature and scope of the
financial institution's activities, and the sensitivity of any customer information at issue.
new text end

new text begin (c) The information security program must include the elements set forth in section
46A.03 and must be reasonably designed to achieve the objectives of this chapter, as
established under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Objectives. new text end

new text begin The objectives of this chapter are to:
new text end

new text begin (1) ensure the security and confidentiality of customer information;
new text end

new text begin (2) protect against any anticipated threats or hazards to the security or integrity of
customer information; and
new text end

new text begin (3) protect against unauthorized access to or use of customer information that might
result in substantial harm or inconvenience to a customer.
new text end

Sec. 3.

new text begin [46A.03] ELEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to develop, implement, and maintain an information
security program, a financial institution must comply with this section.
new text end

new text begin Subd. 2. new text end

new text begin Qualified individual. new text end

new text begin (a) A financial institution must designate a qualified
individual responsible for overseeing, implementing, and enforcing the financial institution's
information security program. The qualified individual may be employed by the financial
institution, an affiliate, or a service provider.
new text end

new text begin (b) If a financial institution designates an individual employed by an affiliate or service
provider as the financial institution's qualified individual, the financial institution must:
new text end

new text begin (1) retain responsibility for complying with this chapter;
new text end

new text begin (2) designate a senior member of the financial institution's personnel to be responsible
for directing and overseeing the qualified individual's activities; and
new text end

new text begin (3) require the service provider or affiliate to maintain an information security program
that protects the financial institution in a manner that complies with the requirements of
this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Security risk assessment. new text end

new text begin (a) A financial institution must base the financial
institution's information security program on a risk assessment that:
new text end

new text begin (1) identifies reasonably foreseeable internal and external risks to the security,
confidentiality, and integrity of customer information that might result in the unauthorized
disclosure, misuse, alteration, destruction, or other compromise of customer information;
and
new text end

new text begin (2) assesses the sufficiency of any safeguards in place to control the risks identified
under clause (1).
new text end

new text begin (b) The risk assessment must be made in writing and must include:
new text end

new text begin (1) criteria to evaluate and categorize identified security risks or threats the financial
institution faces;
new text end

new text begin (2) criteria to assess the confidentiality, integrity, and availability of the financial
institution's information systems and customer information, including the adequacy of
existing controls in the context of the identified risks or threats the financial institution
faces; and
new text end

new text begin (3) requirements describing how:
new text end

new text begin (i) identified risks are mitigated or accepted based on the risk assessment; and
new text end

new text begin (ii) the information security program addresses the risks.
new text end

new text begin (c) A financial institution must periodically perform additional risk assessments that:
new text end

new text begin (1) reexamine the reasonably foreseeable internal and external risks to the security,
confidentiality, and integrity of customer information that might result in the unauthorized
disclosure, misuse, alteration, destruction, or other compromise of customer information;
and
new text end

new text begin (2) reassess the sufficiency of any safeguards in place to control the risks identified
under clause (1).
new text end

new text begin Subd. 4. new text end

new text begin Risk control. new text end

new text begin A financial institution must design and implement safeguards to
control the risks the financial institution identifies through the risk assessment under
subdivision 3, including by:
new text end

new text begin (1) implementing and periodically reviewing access controls, including technical and,
as appropriate, physical controls to:
new text end

new text begin (i) authenticate and permit access only to authorized users to protect against the
unauthorized acquisition of customer information; and
new text end

new text begin (ii) limit an authorized user's access to only customer information that the authorized
user needs to perform the authorized user's duties and functions or, in the case of a customer,
to limit access to the customer's own information;
new text end

new text begin (2) identifying and managing the data, personnel, devices, systems, and facilities that
enable the financial institution to achieve business purposes in accordance with the business
purpose's relative importance to business objectives and the financial institution's risk
strategy;
new text end

new text begin (3) protecting by encryption all customer information held or transmitted by the financial
institution both in transit over external networks and at rest. To the extent a financial
institution determines that encryption of customer information either in transit over external
networks or at rest is infeasible, the financial institution may secure the customer information
using effective alternative compensating controls that have been reviewed and approved by
the financial institution's qualified individual;
new text end

new text begin (4) adopting: (i) secure development practices for in-house developed applications
utilized by the financial institution to transmit, access, or store customer information; and
(ii) procedures to evaluate, assess, or test the security of externally developed applications
the financial institution uses to transmit, access, or store customer information;
new text end

new text begin (5) implementing multifactor authentication for any individual that accesses any
information system, unless the financial institution's qualified individual has approved in
writing the use of a reasonably equivalent or more secure access control;
new text end

new text begin (6) developing, implementing, and maintaining procedures to securely dispose of
customer information in any format no later than two years after the last date the information
is used in connection with providing a product or service to the customer to whom the
information relates, unless: (i) the information is necessary for business operations or for
other legitimate business purposes; (ii) the information is otherwise required to be retained
by law or regulation; or (iii) if targeted disposal of the information is not reasonably feasible
due to the manner in which the information is maintained;
new text end

new text begin (7) periodically reviewing the financial institution's data retention policy to minimize
the unnecessary retention of data;
new text end

new text begin (8) adopting procedures for change management; and
new text end

new text begin (9) implementing policies, procedures, and controls designed to: (i) monitor and log the
activity of authorized users; and (ii) detect unauthorized access to, use of, or tampering with
customer information by authorized users.
new text end

new text begin Subd. 5. new text end

new text begin Testing and monitoring. new text end

new text begin (a) A financial institution must regularly test or
otherwise monitor the effectiveness of the safeguards' key controls, systems, and procedures,
including the controls, systems, and procedures that detect actual and attempted attacks on,
or intrusions into, information systems.
new text end

new text begin (b) For information systems, monitoring and testing must include continuous monitoring
or periodic penetration testing and vulnerability assessments. Absent effective continuous
monitoring or other systems to detect on an ongoing basis any changes in information
systems that may create vulnerabilities, a financial institution must conduct:
new text end

new text begin (1) annual penetration testing of the financial institution's information systems, based
on relevant identified risks in accordance with the risk assessment; and
new text end

new text begin (2) vulnerability assessments, including systemic scans or information systems reviews
that are reasonably designed to identify publicly known security vulnerabilities in the
financial institution's information systems based on the risk assessment, at least every six
months, whenever a material change to the financial institution's operations or business
arrangements occurs, and whenever the financial institution knows or has reason to know
circumstances exist that may have a material impact on the financial institution's information
security program.
new text end

new text begin Subd. 6. new text end

new text begin Internal policies and procedures. new text end

new text begin A financial institution must implement
policies and procedures to ensure that the financial institution's personnel are able to enact
the financial institution's information security program by:
new text end

new text begin (1) providing the financial institution's personnel with security awareness training that
is updated as necessary to reflect risks identified by the risk assessment;
new text end

new text begin (2) utilizing qualified information security personnel employed by the financial institution,
an affiliate, or a service provider sufficient to manage the financial institution's information
security risks and to perform or oversee the information security program;
new text end

new text begin (3) providing information security personnel with security updates and training sufficient
to address relevant security risks; and
new text end

new text begin (4) verifying that key information security personnel take steps to maintain current
knowledge of changing information security threats and countermeasures.
new text end

new text begin Subd. 7. new text end

new text begin Provider oversight. new text end

new text begin A financial institution must oversee service providers by:
new text end

new text begin (1) taking reasonable steps to select and retain service providers that are capable of
maintaining appropriate safeguards for the customer information at issue;
new text end

new text begin (2) requiring by contract the financial institution's service providers to implement and
maintain appropriate safeguards; and
new text end

new text begin (3) periodically assessing the financial institution's service providers based on the risk
the service providers present and the continued adequacy of the service providers' safeguards.
new text end

new text begin Subd. 8. new text end

new text begin Information security program; evaluation; adjustment. new text end

new text begin A financial institution
must evaluate and adjust the financial institution's information security program to reflect:
(1) the results of the testing and monitoring required under subdivision 5; (2) any material
changes to the financial institution's operations or business arrangements; (3) the results of
risk assessments performed under subdivision 3, paragraph (c); or (4) any other circumstances
that the financial institution knows or has reason to know may have a material impact on
the financial institution's information security program.
new text end

new text begin Subd. 9. new text end

new text begin Incident response plan. new text end

new text begin A financial institution must establish a written incident
response plan designed to promptly respond to and recover from any security event materially
affecting the confidentiality, integrity, or availability of customer information the financial
institution controls. An incident response plan must address:
new text end

new text begin (1) the goals of the incident response plan;
new text end

new text begin (2) the internal processes to respond to a security event;
new text end

new text begin (3) clear roles, responsibilities, and levels of decision making authority;
new text end

new text begin (4) external and internal communications and information sharing;
new text end

new text begin (5) requirements to remediate any identified weaknesses in information systems and
associated controls;
new text end

new text begin (6) documentation and reporting regarding security events and related incident response
activities; and
new text end

new text begin (7) evaluation and revision of the incident response plan as necessary after a security
event.
new text end

new text begin Subd. 10. new text end

new text begin Annual report. new text end

new text begin (a) A financial institution must require the financial institution's
qualified individual to report at least annually in writing to the financial institution's board
of directors or equivalent governing body. If a board of directors or equivalent governing
body does not exist, the report under this subdivision must be timely presented to a senior
officer responsible for the financial institution's information security program.
new text end

new text begin (b) The report made under this subdivision must include the following information:
new text end

new text begin (1) the overall status of the financial institution's information security program, including
compliance with this chapter and associated administrative rules; and
new text end

new text begin (2) material matters related to the financial institution's information security program,
including but not limited to addressing issues pertaining to: (i) the risk assessment; (ii) risk
management and control decisions; (iii) service provider arrangements; (iv) testing results;
(v) security events or violations and management's responses to the security event or
violation; and (vi) recommendations for changes in the information security program.
new text end

new text begin Subd. 11. new text end

new text begin Business continuity; disaster recovery. new text end

new text begin A financial institution must establish
a written plan addressing business continuity and disaster recovery.
new text end

Sec. 4.

new text begin [46A.04] EXCEPTIONS AND EXEMPTIONS.
new text end

new text begin (a) The requirements under section 46A.03, subdivisions 3; 5, paragraph (a); 9; and 10,
do not apply to financial institutions that maintain customer information concerning fewer
than 5,000 consumers.
new text end

new text begin (b) This chapter does not apply to credit unions or federally insured depository
institutions.
new text end

Sec. 5.

new text begin [46A.05] ALTERATION OF FEDERAL REGULATION.
new text end

new text begin (a) If an amendment to Code of Federal Regulations, title 16, part 314, results in a
complete lack of federal regulations in the area, the version of the state requirements in
effect at the time of the amendment remain in effect for two years from the date the
amendment becomes effective.
new text end

new text begin (b) During the time period under paragraph (a), the department must adopt replacement
administrative rules as necessary and appropriate.
new text end

Sec. 6.

new text begin [46A.06] NOTIFICATION EVENT.
new text end

new text begin Subdivision 1. new text end

new text begin Notification requirement. new text end

new text begin (a) Upon discovering a notification event as
described in subdivision 2, if the notification event involves the information of at least 500
consumers, a financial institution must notify the commissioner without undue delay, but
no later than 45 days after the date the event is discovered. The notice must be made (1) in
a format specified by the commissioner, and (2) electronically on a form located on the
department's website.
new text end

new text begin (b) The notice must include:
new text end

new text begin (1) the name and contact information of the reporting financial institution;
new text end

new text begin (2) a description of the types of information involved in the notification event;
new text end

new text begin (3) if possible to determine, the date or date range of the notification event;
new text end

new text begin (4) the number of consumers affected or potentially affected by the notification event;
new text end

new text begin (5) a general description of the notification event; and
new text end

new text begin (6) a statement (i) disclosing whether a law enforcement official has provided the financial
institution with a written determination indicating that providing notice to the public regarding
the breach would impede a criminal investigation or cause damage to national security, and
(ii) if a written determination described under item (i) was provided to the financial
institution, providing contact information that enables the commissioner to contact the law
enforcement official. A law enforcement official may request an initial delay of up to 45
days following the date that notice was provided to the commissioner. The delay may be
extended for an additional period of up to 60 days if the law enforcement official seeks an
extension in writing. An additional delay may be permitted only if the commissioner
determines that public disclosure of a security event continues to impede a criminal
investigation or cause damage to national security.
new text end

new text begin Subd. 2. new text end

new text begin Notification event treated as discovered. new text end

new text begin A notification event must be treated
as discovered on the first day when the event is known to a financial institution. A financial
institution is deemed to have knowledge of a notification event if the event is known to any
person, other than the person committing the breach, who is the financial institution's
employee, officer, or other agent.
new text end

Sec. 7.

new text begin [46A.07] COMMISSIONER'S POWERS.
new text end

new text begin (a) The commissioner has the power to examine and investigate the affairs of any covered
financial institution to determine whether the financial institution has been or is engaged in
any conduct that violates this chapter. This power is in addition to the powers granted to
the commissioner under section 46.01.
new text end

new text begin (b) If the commissioner has reason to believe that a financial institution has been or is
engaged in conduct in Minnesota that violates this chapter, the commissioner may take
action necessary or appropriate to enforce this chapter.
new text end

Sec. 8.

new text begin [46A.08] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Information sharing. new text end

new text begin In order to assist in the performance of the
commissioner's duties under sections 46A.01 to 46A.08, the commissioner may:
new text end

new text begin (1) share documents, materials, or other information, including confidential and privileged
documents, with other state, federal, and international regulatory agencies, with the
Conference of State Bank Supervisors, the Conference of State Bank Supervisors' affiliates
or subsidiaries, and with state, federal, and international law enforcement authorities,
provided that the recipient agrees in writing to maintain the confidentiality and privileged
status of the document, material, or other information;
new text end

new text begin (2) receive documents, materials, or information, including otherwise confidential and
privileged documents, materials, or information, from the Conference of State Bank
Supervisors, the Conference of State Bank Supervisors' affiliates or subsidiaries, and from
regulatory and law enforcement officials of other foreign or domestic jurisdictions, and
must maintain as confidential or privileged any document, material, or information received
with notice or the understanding that the document, material, or information is confidential
or privileged under the laws of the jurisdiction that is the source of the document, material,
or information;
new text end

new text begin (3) share documents, materials, or other information with a third-party consultant or
vendor, provided the consultant agrees in writing to maintain the confidentiality and
privileged status of the document, material, or other information; and
new text end

new text begin (4) enter into agreements governing the sharing and use of information that are consistent
with this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Certain actions public. new text end

new text begin Nothing in sections 46A.01 to 46A.08 prohibits the
commissioner from releasing final, adjudicated actions that are open to public inspection
pursuant to chapter 13 to a database or other clearinghouse service maintained by the
Conference of State Bank Supervisors, the Conference of State Bank Supervisors' affiliates,
or the Conference of State Bank Supervisors' subsidiaries.
new text end

Sec. 9.

Minnesota Statutes 2022, section 47.20, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section the terms defined in this subdivision
have the meanings given them:

(1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
whether or not retained by the mortgagee or lender:

(a) Any insurance premiums including but not limited to premiums for title insurance,
fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
excluding any charges or sums retained by the mortgagee or lender as self-insured retention.

(b) Abstracting, title examination and search, and examination of public records.

(c) The preparation and recording of any or all documents required by law or custom
for closing a conventional or cooperative apartment loan.

(d) Appraisal and survey of real property securing a conventional loan or real property
owned by a cooperative apartment corporation of which a share or shares of stock or a
membership certificate or certificates are to secure a cooperative apartment loan.

(e) A single service charge, which includes any consideration, not otherwise specified
herein as an "actual closing cost" paid by the borrower and received and retained by the
lender for or related to the acquisition, making, refinancing or modification of a conventional
or cooperative apartment loan, and also includes any consideration received by the lender
for making a borrower's interest rate commitment or for making a borrower's loan
commitment, whether or not an actual loan follows the commitment. The term service charge
does not include forward commitment fees. The service charge shall not exceed one percent
of the original bona fide principal amount of the conventional or cooperative apartment
loan, except that in the case of a construction loan, the service charge shall not exceed two
percent of the original bona fide principal amount of the loan. That portion of the service
charge imposed because the loan is a construction loan shall be itemized and a copy of the
itemization furnished the borrower. A lender shall not collect from a borrower the additional
one percent service charge permitted for a construction loan if it does not perform the service
for which the charge is imposed or if third parties perform and charge the borrower for the
service for which the lender has imposed the charge.

(f) Charges and fees necessary for or related to the transfer of real or personal property
securing a conventional or cooperative apartment loan or the closing of a conventional or
cooperative apartment loan paid by the borrower and received by any party other than the
lender.

(2) "Contract for deed" means an executory contract for the conveyance of real estate,
the original principal amount of which is less than $300,000. A commitment for a contract
for deed shall include an executed purchase agreement or earnest money contract wherein
the seller agrees to finance any part or all of the purchase price by a contract for deed.

(3) "Conventional loan" means a loan or advance of credit, other than a loan or advance
of credit made by a credit union or made pursuant to section 334.011, to a noncorporate
borrower in an original principal amount of less than deleted text begin $100,000 deleted text end new text begin or equal to the conforming
loan limit established by the Federal Housing Finance Agency under the Housing and
Recovery Act of 2018, Public Law 110-289 new text end , secured by a mortgage upon real property
containing one or more residential units or upon which at the time the loan is made it is
intended that one or more residential units are to be constructed, and which is not insured
or guaranteed by the secretary of housing and urban development, by the administrator of
veterans affairs, or by the administrator of the Farmers Home Administration, and which
is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
mortgage does not include contracts for deed or installment land contracts.

(4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
or advance of credit made by a credit union or made pursuant to section 334.011, to a
noncorporate borrower in an original principal amount of less than $100,000, secured by a
security interest on a share or shares of stock or a membership certificate or certificates
issued to a stockholder or member by a cooperative apartment corporation, which may be
accompanied by an assignment by way of security of the borrower's interest in the proprietary
lease or occupancy agreement in property issued by the cooperative apartment corporation
and which is not insured or guaranteed by the secretary of housing and urban development,
by the administrator of veterans affairs, or by the administrator of the Farmers Home
Administration.

(5) "Cooperative apartment corporation" means a corporation or cooperative organized
under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
reason of their ownership of stock or membership certificates in the corporation or
association, to occupy one or more residential units in a building owned or leased by the
corporation or association.

(6) "Forward commitment fee" means a fee or other consideration paid to a lender for
the purpose of securing a binding forward commitment by or through the lender to make
conventional loans to two or more credit worthy purchasers, including future purchasers,
of residential units, or a fee or other consideration paid to a lender for the purpose of securing
a binding forward commitment by or through the lender to make conventional loans to two
or more credit worthy purchasers, including future purchasers, of units to be created out of
existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
for the purpose of securing a binding forward commitment by or through the lender to make
cooperative apartment loans to two or more credit worthy purchasers, including future
purchasers, of a share or shares of stock or a membership certificate or certificates in a
cooperative apartment corporation; provided, that the forward commitment rate of interest
does not exceed the maximum lawful rate of interest effective as of the date the forward
commitment is issued by the lender.

(7) "Borrower's interest rate commitment" means a binding commitment made by a
lender to a borrower wherein the lender agrees that, if a conventional or cooperative
apartment loan is made following issuance of and pursuant to the commitment, the
conventional or cooperative apartment loan shall be made at a rate of interest not in excess
of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
to in the commitment is not in excess of the maximum lawful rate of interest effective as
of the date the commitment is issued by the lender to the borrower.

(8) "Borrower's loan commitment" means a binding commitment made by a lender to a
borrower wherein the lender agrees to make a conventional or cooperative apartment loan
pursuant to the provisions, including the interest rate, of the commitment, provided that the
commitment rate of interest does not exceed the maximum lawful rate of interest effective
as of the date the commitment is issued and the commitment when issued and agreed to
shall constitute a legally binding obligation on the part of the mortgagee or lender to make
a conventional or cooperative apartment loan within a specified time period in the future at
a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
the commitment is issued by the lender to the borrower; provided that a lender who issues
a borrower's loan commitment pursuant to the provisions of a forward commitment is
authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
maximum lawful rate of interest effective as of the date the forward commitment is issued
by the lender.

(9) "Finance charge" means the total cost of a conventional or cooperative apartment
loan including extensions or grant of credit regardless of the characterization of the same
and includes interest, finders fees, and other charges levied by a lender directly or indirectly
against the person obtaining the conventional or cooperative apartment loan or against a
seller of real property securing a conventional loan or a seller of a share or shares of stock
or a membership certificate or certificates in a cooperative apartment corporation securing
a cooperative apartment loan, or any other party to the transaction except any actual closing
costs and any forward commitment fee. The finance charges plus the actual closing costs
and any forward commitment fee, charged by a lender shall include all charges made by a
lender other than the principal of the conventional or cooperative apartment loan. The finance
charge, with respect to wraparound mortgages, shall be computed based upon the face
amount of the wraparound mortgage note, which face amount shall consist of the aggregate
of those funds actually advanced by the wraparound lender and the total outstanding principal
balances of the prior note or notes which have been made a part of the wraparound mortgage
note.

(10) "Lender" means any person making a conventional or cooperative apartment loan,
or any person arranging financing for a conventional or cooperative apartment loan. The
term also includes the holder or assignee at any time of a conventional or cooperative
apartment loan.

(11) "Loan yield" means the annual rate of return obtained by a lender over the term of
a conventional or cooperative apartment loan and shall be computed as the annual percentage
rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
the rate of interest or loan yield shall be based upon the principal balance set forth in the
wraparound note and mortgage and shall not include any interest differential or yield
differential between the stated interest rate on the wraparound mortgage and the stated
interest rate on the one or more prior mortgages included in the stated loan amount on a
wraparound note and mortgage.

(12) "Person" means an individual, corporation, business trust, partnership or association
or any other legal entity.

(13) "Residential unit" means any structure used principally for residential purposes or
any portion thereof, and includes a unit in a common interest community, a nonowner
occupied residence, and any other type of residence regardless of whether the unit is used
as a principal residence, secondary residence, vacation residence, or residence of some other
denomination.

(14) "Vendor" means any person or persons who agree to sell real estate and finance
any part or all of the purchase price by a contract for deed. The term also includes the holder
or assignee at any time of the vendor's interest in a contract for deed.

Sec. 10.

Minnesota Statutes 2022, section 47.54, subdivision 2, is amended to read:

Subd. 2.

Approval deleted text begin order deleted text end .

new text begin (a) new text end If no objection is received by the commissioner within
15 days after the publication of the notice, the commissioner deleted text begin shall issue an order deleted text end new text begin must
provide written consent new text end approving the application without a hearing if deleted text begin it is found deleted text end new text begin the
commissioner finds new text end that deleted text begin (a) deleted text end new text begin : (1) new text end the applicant bank meets current industry standards of
capital adequacy, management quality, and asset condition deleted text begin , (b) deleted text end new text begin ; (2) new text end the establishment of the
proposed detached facility deleted text begin will improve deleted text end new text begin improves new text end the quality or increase the availability of
banking services in the community to be served deleted text begin , deleted text end new text begin ; new text end and deleted text begin (c) deleted text end new text begin (3) new text end the establishment of the proposed
detached facility deleted text begin will deleted text end new text begin does new text end not have an undue adverse effect upon the solvency of existing
financial institutions in the community to be served.

deleted text begin Otherwise, deleted text end new text begin (b) new text end The commissioner deleted text begin shall deleted text end new text begin must new text end deny deleted text begin the deleted text end new text begin an new text end application new text begin that does not meet
the criteria under paragraph (a), clauses (1) to (3) new text end .

new text begin (c) new text end Any proceedings for judicial review of deleted text begin an order of deleted text end new text begin written consent provided by new text end the
commissioner deleted text begin issued deleted text end under this subdivision without a contested case hearing shall be
conducted pursuant to the provisions of the Administrative Procedure Act relating to judicial
review of agency decisions, sections 14.63 to 14.69, and the scope of judicial review in
such proceedings shall be as provided therein. Nothing herein shall be construed as requiring
the commissioner to conduct a contested case hearing if no written objection is timely
received by the commissioner from a bank within three miles of the proposed location of
the detached facility.

Sec. 11.

Minnesota Statutes 2022, section 47.54, subdivision 6, is amended to read:

Subd. 6.

Expiration and extension of deleted text begin order deleted text end new text begin approval new text end .

If a facility is not activated
within 18 months from the date deleted text begin of the order deleted text end new text begin approval is granted under subdivision 2 new text end , the
approval deleted text begin order deleted text end automatically expires. Upon new text begin a new text end request deleted text begin of deleted text end new text begin made by new text end the applicant deleted text begin prior to deleted text end new text begin
before new text end the deleted text begin automatic expiration deleted text end date deleted text begin of deleted text end the deleted text begin order deleted text end new text begin approval expires new text end , the commissioner may
grant reasonable extensions of time to the applicant to activate the facility as the
commissioner deems necessary. The extensions of time shall not exceed a total of an
additional 12 months. If the commissioner's deleted text begin order deleted text end new text begin approval new text end is the subject of an appeal in
accordance with chapter 14, the time period referred to in this section deleted text begin for activation of deleted text end new text begin to
activate new text end the facility and any extensions deleted text begin shall begin deleted text end new text begin begins new text end when all appeals or rights of
appeal from the commissioner's deleted text begin order deleted text end new text begin approval new text end have concluded or expired.

Sec. 12.

Minnesota Statutes 2023 Supplement, section 47.59, subdivision 2, is amended
to read:

Subd. 2.

Application.

new text begin (a) new text end Extensions of credit or purchases of extensions of credit by
financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, 48.153, 48.185,
48.195, 59A.01 to 59A.15, 334.01, 334.011, 334.012, 334.022, 334.06, and 334.061 to
334.19 may, but need not, be made according to those sections in lieu of the authority set
forth in this section to the extent those sections authorize the financial institution to make
extensions of credit or purchase extensions of credit under those sections. If a financial
institution elects to make an extension of credit or to purchase an extension of credit under
those other sections, the extension of credit or the purchase of an extension of credit is
subject to those sections and not this section, except this subdivision, and except as expressly
provided in those sections. A financial institution may also charge an organization a rate of
interest and any charges agreed to by the organization and may calculate and collect finance
and other charges in any manner agreed to by that organization. Except for extensions of
credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.022,
334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made
according to this section or the sections listed in this subdivision. This subdivision does not
authorize a financial institution to extend credit or purchase an extension of credit under
any of the sections listed in this subdivision if the financial institution is not authorized to
do so under those sections. A financial institution extending credit under any of the sections
listed in this subdivision shall specify in the promissory note, contract, or other loan document
the section under which the extension of credit is made.

new text begin (b) In accordance with section 525 of the federal Depository Institutions Deregulation
and Monetary Control Act of 1980, Public Law 96-221, the legislature declares that the
state of Minnesota does not want the amendments to the Federal Deposit Insurance Act,
United States Code, title 12, section 1811, et seq., the federal National Housing Act, United
States Code, title 12, section 1701, et seq., and the Federal Credit Union Act, United States
Code, title 12, section 1751, et seq., made by sections 521 to 523 of the federal Depository
Institutions Deregulation and Monetary Control Act of 1980, Public Law 96-221, prescribing
interest rates and preempting state interest rates to apply to consumer loans made in
Minnesota. Consumer loans made in Minnesota are subject to the rates established in this
section and as otherwise provided by the laws of Minnesota.
new text end

new text begin (c) A consumer loan is deemed to be made in Minnesota and is subject to this section
and other applicable laws of Minnesota if the borrower is a Minnesota resident and the
borrower completes the transaction, either personally or electronically, while physically
located in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to loans
executed on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2022, section 47.59, subdivision 3, is amended to read:

Subd. 3.

Finance charge for loans.

(a) With respect to a loan, including a loan pursuant
to open-end credit but excluding open-end credit pursuant to a credit card, a financial
institution may contract for and receive a finance charge on the unpaid balance of the
principal amount not to exceed the greater of:

(1) an annual percentage rate not exceeding 21.75 percent; or

(2) the total of:

(i) 33 percent per year on that part of the unpaid balance of the principal amount not
exceeding $1,350; and

(ii) 19 percent per year on that part of the unpaid balance of the principal amount
exceeding $1,350.

With respect to open-end credit pursuant to a credit card, the financial institution may
contract for and receive a finance charge on the unpaid balance of the principal amount at
an annual percentage rate not exceeding 18 percent per year new text begin or, if the financial institution
is an out-of-state bank, as defined in section 48.92, or out-of-state credit union, as defined
in section 52.001, the rate allowed by the financial institution's home state, if that rate
exceeds 18 percent per year new text end .

(b) On a loan where the finance charge is calculated according to the method provided
for in paragraph (a), clause (2), the finance charge must be contracted for and earned as
provided in that provision or at the single annual percentage rate computed to the nearest
one-tenth of one percent that would earn the same total finance charge at maturity of the
contract as would be earned by the application of the graduated rates provided in paragraph
(a), clause (2), when the debt is paid according to the agreed terms and the calculations are
made according to the actuarial method.

(c) With respect to a loan, the finance charge must be considered not to exceed the
maximum annual percentage rate permitted under this section if the finance charge contracted
for and received does not exceed the equivalent of the maximum annual percentage rate
calculated in accordance with Code of Federal Regulations, title 12, part 226, but using the
definition of finance charge provided in this section.

(d) This subdivision does not limit or restrict the manner of calculating the finance
charge, whether by way of add-on, discount, discount points, precomputed charges, single
annual percentage rate, variable rate, interest in advance, compounding, average daily
balance method, or otherwise, if the annual percentage rate does not exceed that permitted
by this section. Discount points permitted by this paragraph and not collected but included
in the principal amount must not be included in the amount on which credit insurance
premiums are calculated and charged.

(e) With respect to a loan secured by real estate, if a finance charge is calculated or
collected in advance, or included in the principal amount of the loan, and the borrower
prepays the loan in full, the financial institution shall credit the borrower with a refund of
the charge to the extent that the annual percentage rate yield on the loan would exceed the
maximum rate permitted under paragraph (a), taking into account the prepayment. The
refund need not be made if it would be less than $9.00.

(f) With respect to all other loans, if the finance charge is calculated or collected in
advance, or included in the principal amount of the loan, and the borrower prepays the loan
in full, the financial institution shall credit the borrower with a refund of the charge to the
extent the annual percentage rate yield on the loan would exceed the annual percentage rate
on the loan as originally determined under paragraph (a) and taking into account the
prepayment. The refund need not be made if it would be less than $9.00.

(g) For the purpose of calculating the refund under this subdivision, the financial
institution may assume that the contract was paid before the date of prepayment according
to the schedule of payments under the loan and that all payments were paid on their due
dates.

(h) For loans repayable in substantially equal successive monthly installments, the
financial institution may calculate the refund under paragraph (f) as the portion of the finance
charge allocable on an actuarial basis to all wholly unexpired payment periods following
the date of prepayment, based on the annual percentage rate on the loan as originally
determined under paragraph (a), and for the purpose of calculating the refund may assume
that all payments are made on the due date.

(i) The dollar amounts in this subdivision, subdivision 6, paragraph (a), clause (4), and
the dollar amount of original principal amount of closed-end credit in subdivision 6,
paragraph (d), shall change periodically, as provided in this section, according to and to the
extent of changes in the implicit price deflator for the gross domestic product, 2005 = 100,
compiled by the United States Department of Commerce, and hereafter referred to as the
index. The index for December 2011 is the reference base index for adjustments of dollar
amounts.

(j) The designated dollar amounts shall change on July 1 of each even-numbered year
if the percentage of change, calculated to the nearest whole percentage point, between the
index for December of the preceding year and the reference base index is ten percent or
more; but

(1) the portion of the percentage change in the index in excess of a multiple of ten percent
shall be disregarded and the dollar amounts shall change only in multiples of ten percent
of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and

(2) the dollar amounts shall not change if the amounts required by this section are those
currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier application of
this section.

(k) If the index is revised, the percentage of change pursuant to this section shall be
calculated on the basis of the revised index. If a revision of the index changes the reference
base index, a revised reference base index shall be determined by multiplying the reference
base index then applicable by the rebasing factor furnished by the Department of Commerce.
If the index is superseded, the index referred to in this section is the one represented by the
Department of Commerce as reflecting most accurately changes in the purchasing power
of the dollar for consumers.

(l) The commissioner shall:

(1) announce and publish on or before April 30 of each year in which dollar amounts
are to change, the changes in dollar amounts required by paragraph (j);

(2) announce and publish promptly after the changes occur, changes in the index required
by paragraph (k) including, if applicable, the numerical equivalent of the reference base
index under a revised reference base index and the designation or title of any index
superseding the index; and

(3) promptly notify the revisor of statutes in writing of the changes announced and
published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
the changes in the next edition of Minnesota Statutes.

(m) A person does not violate this chapter with respect to a transaction otherwise
complying with this chapter if that person relies on dollar amounts either determined
according to paragraph (j), clause (2), or appearing in the last publication of the commissioner
announcing the then current dollar amounts.

(n) The adjustments provided in this section shall not be affected unless explicitly
provided otherwise by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to loans
executed on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2022, section 48.24, subdivision 2, is amended to read:

Subd. 2.

Loan liabilities.

Loans not exceeding 25 percent of such capital and surplus
made upon first mortgage security on improved real estate in any state in which the bank
or a deleted text begin branch established under section 49.411 deleted text end new text begin detached facility of the bank new text end is located, or in
any state adjoining a state in which the bank or a deleted text begin branch established under section 49.411 deleted text end new text begin
detached facility of the bank new text end is located, shall not constitute a liability of the maker of the
notes secured by such mortgages within the meaning of the foregoing provision limiting
liability, but shall be an actual liability of the maker. These mortgage loans shall be limited
to, and in no case exceed, 50 percent of the cash value of the security covered by the
mortgage, except mortgage loans guaranteed as provided by the Servicemen's Readjustment
Act of 1944, as now or hereafter amended, or for which there is a commitment to so guarantee
or for which a conditional guarantee has been issued, which loans shall in no case exceed
60 percent of the cash value of the security covered by such mortgage. For the purposes of
this subdivision, real estate is improved when substantial and permanent development or
construction has contributed substantially to its value, and agricultural land is improved
when farm crops are regularly raised on such land without further substantial improvements.

Sec. 15.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Transaction hash. new text end

new text begin "Transaction hash" means a unique identifier made up of
a string of characters that act as a record of and provide proof that the transaction was
verified and added to the blockchain.
new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Virtual currency address. new text end

new text begin "Virtual currency address" means an alphanumeric
identifier representing a destination for a virtual currency transfer that is associated with a
virtual currency wallet.
new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Virtual currency kiosk. new text end

new text begin "Virtual currency kiosk" means an electronic terminal
acting as a mechanical agent of the virtual currency kiosk operator to enable the virtual
currency kiosk operator to facilitate the exchange of virtual currency for money, bank credit,
or other virtual currency, including but not limited to by (1) connecting directly to a separate
virtual currency exchanger that performs the actual virtual currency transmission, or (2)
drawing upon the virtual currency in the possession of the electronic terminal's operator.
new text end

Sec. 18.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Virtual currency kiosk operator. new text end

new text begin "Virtual currency kiosk operator" means
a corporation, limited liability company, limited liability partnership, foreign entity, or any
other person or entity qualified to do business in Minnesota that operates a virtual currency
kiosk within Minnesota.
new text end

Sec. 19.

Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Virtual currency wallet. new text end

new text begin "Virtual currency wallet" means a software
application or other mechanism providing a means to hold, store, or transfer virtual currency.
new text end

Sec. 20.

new text begin [53B.75] VIRTUAL CURRENCY KIOSKS.
new text end

new text begin Subdivision 1. new text end

new text begin Disclosures on material risks. new text end

new text begin (a) Before entering into an initial virtual
currency transaction for, on behalf of, or with a person, the virtual currency kiosk operator
must disclose in clear, conspicuous, and legibly written English all material risks generally
associated with virtual currency. The disclosures must be displayed on the screen of the
virtual currency kiosk with the ability for a person to acknowledge the receipt of the
disclosures. The disclosures must include at least the following information:
new text end

new text begin (1) virtual currency is not legal tender, backed or insured by the government, and accounts
and value balances are not subject to Federal Deposit Insurance Corporation, National Credit
Union Administration, or Securities Investor Protection Corporation protections;
new text end

new text begin (2) some virtual currency transactions are deemed to be made when recorded on a public
ledger, which may not be the date or time when the person initiates the transaction;
new text end

new text begin (3) virtual currency's value may be derived from market participants' continued
willingness to exchange fiat currency for virtual currency, which may result in the permanent
and total loss of a particular virtual currency's value if the market for virtual currency
disappears;
new text end

new text begin (4) a person who accepts a virtual currency as payment today is not required to accept
and might not accept virtual currency in the future;
new text end

new text begin (5) the volatility and unpredictability of the price of virtual currency relative to fiat
currency may result in a significant loss over a short period;
new text end

new text begin (6) the nature of virtual currency may lead to an increased risk of fraud or cyber attack;
new text end

new text begin (7) the nature of virtual currency means that any technological difficulties experienced
by virtual currency kiosk operators may prevent access to or use of a person's virtual
currency; and
new text end

new text begin (8) any bond maintained by the virtual currency kiosk operator for the benefit of a person
may not cover all losses a person incurs.
new text end

new text begin (b) The virtual currency kiosk operator must provide an additional disclosure, which
must be acknowledged by the person, written prominently and in bold type, and provided
separately from the disclosures above, stating: "WARNING: LOSSES DUE TO
FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE RECOVERABLE
AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE."
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) A virtual currency kiosk operator must disclose all relevant
terms and conditions generally associated with the products, services, and activities of the
virtual currency kiosk operator and virtual currency. A virtual currency kiosk operator must
make the disclosures in clear, conspicuous, and legibly written English, using at least 48-point
sans serif type font. The disclosures under this subdivision must address at least the following:
new text end

new text begin (1) the person's liability for unauthorized virtual currency transactions;
new text end

new text begin (2) the person's right to:
new text end

new text begin (i) stop payment of a virtual currency transfer and the procedure to stop payment;
new text end

new text begin (ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of the
transaction; and
new text end

new text begin (iii) prior notice of a change in the virtual currency kiosk operator's rules or policies;
new text end

new text begin (3) under what circumstances the virtual currency kiosk operator, without a court or
government order, discloses a person's account information to third parties; and
new text end

new text begin (4) other disclosures that are customarily provided in connection with opening a person's
account.
new text end

new text begin (b) Before each virtual currency transaction for, on behalf of, or with a person, a virtual
currency kiosk operator must disclose the transaction's terms and conditions in clear,
conspicuous, and legibly written English, using at least 48-point sans serif type font. The
disclosures under this subdivision must address at least the following:
new text end

new text begin (1) the amount of the transaction;
new text end

new text begin (2) any fees, expenses, and charges, including applicable exchange rates;
new text end

new text begin (3) the type and nature of the transaction;
new text end

new text begin (4) a warning that once completed, the transaction may not be reversed;
new text end

new text begin (5) a daily virtual currency transaction limit of no more than $3,000;
new text end

new text begin (6) the difference in the virtual currency's sale price compared to the current market
price; and
new text end

new text begin (7) other disclosures that are customarily given in connection with a virtual currency
transaction.
new text end

new text begin Subd. 3. new text end

new text begin Acknowledgment of disclosures. new text end

new text begin Before completing the transaction, a virtual
currency kiosk operator must ensure that each person who engages in a virtual currency
transaction using the virtual currency operator's kiosk acknowledges receipt of all the
disclosures required under this section via a confirmation of consent. Additionally, upon a
transaction's completion, the virtual currency operator must provide a person with a physical
receipt, or the person may choose to have a virtual receipt sent to the person's email address,
containing the following information:
new text end

new text begin (1) the virtual currency kiosk operator's name and contact information, including a
telephone number to answer questions and register complaints;
new text end

new text begin (2) the type, value, date, and precise time of the transaction, transactional hash, and each
virtual currency address;
new text end

new text begin (3) the fees charged;
new text end

new text begin (4) the exchange rate;
new text end

new text begin (5) a statement of the virtual currency kiosk operator's liability for nondelivery or delayed
delivery;
new text end

new text begin (6) a statement of the virtual currency kiosk operator's refund policy; and
new text end

new text begin (7) any additional information the commissioner of commerce may require.
new text end

new text begin Subd. 4. new text end

new text begin Cancellation and refund. new text end

new text begin A virtual currency kiosk operator must, at the virtual
currency kiosk operator's cost and within 72 hours after a virtual currency transaction, allow
the person to cancel and receive a full refund for the virtual currency transaction if the virtual
currency transaction is:
new text end

new text begin (1) the person's first virtual currency transaction with the virtual currency kiosk operator;
or
new text end

new text begin (2) to a virtual currency wallet or exchange located outside of the United States.
new text end

Sec. 21.

Minnesota Statutes 2022, section 58.02, is amended by adding a subdivision to
read:

new text begin Subd. 15a. new text end

new text begin Nationwide Multistate Licensing System and Registry. new text end

new text begin "Nationwide
Multistate Licensing System and Registry" has the meaning given in section 58A.02,
subdivision 8.
new text end

Sec. 22.

Minnesota Statutes 2022, section 58.02, subdivision 18, is amended to read:

Subd. 18.

Residential mortgage loan.

"Residential mortgage loan" means a loan secured
primarily by either: (1) a mortgage new text begin , deed of trust, or other equivalent security interest new text end on
residential real deleted text begin property deleted text end new text begin estate new text end ; or (2) certificates of stock or other evidence of ownership
interest in and proprietary lease from corporations, partnerships, or other forms of business
organizations formed for the purpose of cooperative ownership of residential real deleted text begin property deleted text end new text begin
estate new text end .

Sec. 23.

Minnesota Statutes 2022, section 58.02, subdivision 21, is amended to read:

Subd. 21.

Residential real estate.

"Residential real estate" means real property located
in Minnesota upon which a dwelling new text begin , as defined in United States Code, title 15, section
1602(w), new text end is constructed or is intended to be constructed, whether or not the owner occupies
the real property.

Sec. 24.

Minnesota Statutes 2022, section 58.04, subdivision 1, is amended to read:

Subdivision 1.

Residential mortgage originator licensing requirements.

(a) No person
shall act as a residential mortgage originator, or make residential mortgage loans without
first obtaining a license from the commissioner according to the licensing procedures
provided in this chapter.

(b) A licensee must be either a partnership, limited liability partnership, association,
limited liability company, corporation, or other form of business organization, and must
have and maintain a surety bond in the amounts prescribed under section 58.08.

(c) The following persons are exempt from the residential mortgage originator licensing
requirements:

(1) a person who is not in the business of making residential mortgage loans and who
makes no more than three such loans, with its own funds, during any 12-month period;

(2) a financial institution as defined in section 58.02, subdivision 10;

(3) an agency of the federal government, or of a state or municipal government;

(4) an employee or employer pension plan making loans only to its participants;

(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
specific order issued by a court of competent jurisdiction;

new text begin (6) a person who is a bona fide nonprofit organization that meets all the criteria required
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, adopted pursuant
to Code of Federal Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii);
new text end

deleted text begin (6) deleted text end new text begin (7) new text end a person exempted by order of the commissioner; or

deleted text begin (7) deleted text end new text begin (8) new text end a manufactured home dealer, as defined in section 327B.01, subdivision 7 or 11b,
or a manufactured home salesperson, as defined in section 327B.01, subdivision 19, that:

(i) performs only clerical or support duties in connection with assisting a consumer in
filling out a residential mortgage loan application but does not in any way offer or negotiate
loan terms, or hold themselves out as a housing counselor;

(ii) does not receive any direct or indirect compensation or gain from any individual or
company for assisting consumers with a residential mortgage loan application, in excess of
the customary salary or commission from the employer in connection with the sales
transaction; and

(iii) discloses to the borrower in writing:

(A) if a corporate affiliation with a lender exists;

(B) if a corporate affiliation with a lender exists, that the lender cannot guarantee the
lowest or best terms available and the consumer has the right to choose their lender; and

(C) if a corporate affiliation with a lender exists, the name of at least one unaffiliated
lender.

(d) For the purposes of this subdivision, "housing counselor" means an individual who
provides assistance and guidance about residential mortgage loan terms including rates,
fees, or other costs.

(e) The disclosures required under paragraph (c), clause deleted text begin (7) deleted text end new text begin (8) new text end , item (iii), must be made
on a one-page form prescribed by the commissioner and developed in consultation with the
Manufactured and Modular Home Association. The form must be posted on the department's
website.

Sec. 25.

Minnesota Statutes 2022, section 58.04, subdivision 2, is amended to read:

Subd. 2.

Residential mortgage servicer licensing requirements.

(a) Beginning August
1, 1999, no person shall engage in activities or practices that fall within the definition of
"servicing a residential mortgage loan" under section 58.02, subdivision 22, without first
obtaining a license from the commissioner according to the licensing procedures provided
in this chapter.

(b) The following persons are exempt from the residential mortgage servicer licensing
requirements:

(1) a person licensed as a residential mortgage originator;

(2) an employee of one licensee or one person holding a certificate of exemption based
on an exemption under this subdivision;

(3) a person servicing loans made with its own funds, if no more than three such loans
are made in any 12-month period;

(4) a financial institution as defined in section 58.02, subdivision 10;

(5) an agency of the federal government, or of a state or municipal government;

(6) an employee or employer pension plan making loans only to its participants;

(7) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
specific order issued by a court of competent jurisdiction; deleted text begin or
deleted text end

new text begin (8) a person who is a bona fide nonprofit organization that meets all the criteria required
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, Code of Federal
Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii); or
new text end

deleted text begin (8) deleted text end new text begin (9) new text end a person exempted by order of the commissioner.

Sec. 26.

Minnesota Statutes 2022, section 58.05, subdivision 1, is amended to read:

Subdivision 1.

Exempt person.

new text begin (a) new text end An exempt person new text begin , new text end as defined by section 58.04,
subdivision 1, paragraph (c), and subdivision 2, paragraph (b), is exempt from the licensing
requirements of this chapter, but is subject to all other provisions of this chapter.

new text begin (b) Paragraph (a) does not apply to an institution covered under section 58.04, subdivision
4, even if the institution is otherwise an exempt person.
new text end

Sec. 27.

Minnesota Statutes 2022, section 58.05, subdivision 3, is amended to read:

Subd. 3.

Certificate of exemption.

deleted text begin A person deleted text end new text begin (a) The following persons new text end must obtain a
certificate of exemption from the commissioner to qualify as an exempt person under section
58.04, subdivision 1, paragraph (c) deleted text begin , a financial institution under clause (2), deleted text end new text begin :
new text end

new text begin (1) a bona fide nonprofit organization under section 58.04, subdivision 1, paragraph (c),
clause (6); new text end or

new text begin (2) a person exempted new text end by order of the commissioner under new text begin section 58.04, subdivision
1, paragraph (c), new text end clause deleted text begin (6); or deleted text end new text begin (7).
new text end

new text begin (b) The following persons must obtain a certificate of exemption from the commissioner
to qualify as an exempt person new text end under section 58.04, subdivision 2, paragraph (b) deleted text begin , as a
financial institution under clause (4), deleted text end new text begin :
new text end

new text begin (1) a bona fide nonprofit organization under section 58.04, subdivision 2, paragraph (b),
clause (8); new text end or

new text begin (2) a person exempted new text end by order of the commissioner under new text begin section 58.04, subdivision
2, paragraph (b), new text end clause deleted text begin (8) deleted text end new text begin (9) new text end .

Sec. 28.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Background checks. new text end

new text begin In connection with an application for a residential mortgage
loan originator or servicer license, any person in control of an applicant must, at a minimum,
provide the Nationwide Multistate Licensing System and Registry information concerning
the person's identity, including:
new text end

new text begin (1) fingerprints for submission to the Federal Bureau of Investigation and a governmental
agency or entity authorized to receive the information for a state, national, and international
criminal history background check; and
new text end

new text begin (2) personal history and experience in a form prescribed by the Nationwide Multistate
Licensing System and Registry, including the submission of authorization for the Nationwide
Multistate Licensing System and Registry and the commissioner to obtain:
new text end

new text begin (i) an independent credit report obtained from a consumer reporting agency described
in United States Code, title 15, section 1681a(p); and
new text end

new text begin (ii) information related to administrative, civil, or criminal findings by a governmental
jurisdiction.
new text end

Sec. 29.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Requesting and distributing criminal information; agency. new text end

new text begin For the purposes
of this section and in order to reduce the points of contact the Federal Bureau of Investigation
may have to maintain for purposes of subdivision 5, clauses (1) and (2), the commissioner
may use the Nationwide Multistate Licensing System and Registry as a channeling agent
to request information from and distribute information to the United States Department of
Justice or any governmental agency.
new text end

Sec. 30.

Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Requesting and distributing noncriminal information; agency. new text end

new text begin For the
purposes of this section and in order to reduce the points of contact the commissioner may
have to maintain for purposes of subdivision 5, clause (2), the commissioner may use the
Nationwide Multistate Licensing System and Registry as a channeling agent to request and
distribute information from and to any source, as directed by the commissioner.
new text end

Sec. 31.

Minnesota Statutes 2022, section 58.08, subdivision 1a, is amended to read:

Subd. 1a.

Residential mortgage originators.

(a) An applicant for a residential mortgage
originator license must file with the department a surety bond in the amount of deleted text begin $100,000 deleted text end new text begin
$125,000 new text end , issued by an insurance company authorized to do so in this state. The bond must
cover all mortgage loan originators who are employees or independent agents of the applicant.
The bond must be available for the recovery of expenses, fines, and fees levied by the
commissioner under this chapter and for losses incurred by borrowers as a result of a
licensee's noncompliance with the requirements of this chapter, sections 325D.43 to 325D.48,
and 325F.67 to 325F.69, or breach of contract relating to activities regulated by this chapter.

(b) The bond must be submitted with the originator's license application and evidence
of continued coverage must be submitted with each renewal. Any change in the bond must
be submitted for approval by the commissioner, within ten days of its execution. The bond
or a substitute bond shall remain in effect during all periods of licensing.

(c) Upon filing of the mortgage call report as required by section deleted text begin 58A.17 deleted text end new text begin 58.141 new text end , a
licensee shall maintain or increase deleted text begin its deleted text end new text begin the licensee's new text end surety bond to reflect the total dollar
amount of the closed residential mortgage loans originated in this state in the preceding
year according to the table in this paragraph. A licensee may decrease deleted text begin its deleted text end new text begin the licensee's new text end
surety bond according to the table in this paragraph if the surety bond required is less than
the amount of the surety bond on file with the department.

Dollar Amount of Closed Residential Mortgage Loans	Surety Bond Required
$0 to deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end	deleted text begin $100,000 deleted text end new text begin $125,000 new text end
deleted text begin $5,000,000.01 deleted text end new text begin $10,000,000.01 new text end to deleted text begin $10,000,000 deleted text end new text begin $25,000,000 new text end	deleted text begin $125,000 deleted text end new text begin $150,000 new text end
deleted text begin $10,000,000.01 deleted text end new text begin $25,000,000.01 new text end to deleted text begin $25,000,000 deleted text end new text begin $100,000,000 new text end	deleted text begin $150,000 deleted text end new text begin $200,000 new text end
Over deleted text begin $25,000,000 deleted text end new text begin $100,000,000 new text end	deleted text begin $200,000 deleted text end new text begin $300,000 new text end

For purposes of this subdivision, "mortgage loan originator" has the meaning given the
term in section 58A.02, subdivision 7.

Sec. 32.

Minnesota Statutes 2022, section 58.08, subdivision 2, is amended to read:

Subd. 2.

Residential mortgage servicers.

new text begin (a) new text end A residential mortgage servicer licensee
shall continuously maintain a surety bond or irrevocable letter of credit in an amount not
less than deleted text begin $100,000 deleted text end new text begin $125,000 new text end in a form approved by the commissioner, issued by an insurance
company or bank authorized to do so in this state. The bond or irrevocable letter of credit
must be available for the recovery of expenses, fines, and fees levied by the commissioner
under this chapter, and for losses or damages incurred by borrowers or other aggrieved
parties as the result of a licensee's noncompliance with the requirements of this chapter,
sections 325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to
activities regulated by this chapter.

new text begin (b) new text end The bond or irrevocable letter of credit must be submitted with the servicer's license
application and evidence of continued coverage must be submitted with each renewal. Any
change in the bond or letter of credit must be submitted for approval by the commissioner,
within ten days of its execution. new text begin The bond or a substitute bond must remain in effect during
all periods of a license.
new text end

new text begin (c) Upon filing the mortgage call report under section 58.141, a licensee must maintain
or increase the licensee's surety bond to reflect the total dollar amount of unpaid principal
balance for residential mortgage loans serviced in Minnesota during the preceding quarter
according to the table in this paragraph. A licensee may decrease the licensee's surety bond
according to the table in this paragraph if the surety bond required is less than the amount
of the surety bond on file with the department.
new text end

new text begin Dollar Amount of Unpaid Principal Balance for Serviced Residential Mortgage Loans new text end	new text begin Surety Bond Required new text end
new text begin $0 to $10,000,000 new text end	new text begin $125,000 new text end
new text begin $10,000,000.01 to $50,000,000 new text end	new text begin $200,000 new text end
new text begin Over $50,000,000 new text end	new text begin $300,000 new text end

Sec. 33.

Minnesota Statutes 2022, section 58.10, subdivision 3, is amended to read:

Subd. 3.

Consumer education account; money credited and appropriated.

(a) The
consumer education account is created in the special revenue fund. Money credited to this
account may be appropriated to the commissioner deleted text begin for the purpose of making deleted text end new text begin to: (1) make new text end
grants to programs and campaigns designed to help consumers avoid being victimized by
unscrupulous lenders and mortgage brokers new text begin ; and (2) pay for expenses the commissioner
incurs to provide outreach and education related new text end new text begin to affordable housing and home ownership
education new text end . new text begin The commissioner must give new text end preference deleted text begin shall be given deleted text end new text begin for grants new text end to programs
and campaigns designed by coalitions of public sector, private sector, and nonprofit agencies,
institutions, companies, and organizations.

(b) A sum sufficient is appropriated annually from the consumer education account to
the commissioner to make the grants described in paragraph (a).

Sec. 34.

Minnesota Statutes 2022, section 58.115, is amended to read:

58.115 EXAMINATIONS.

The commissioner has under this chapter the same powers with respect to examinations
that the commissioner has under section 46.04. new text begin In addition to the powers under section
46.04, the commissioner may accept examination reports prepared by a state agency that
has comparable supervisory powers and examination procedures. The authority under section
49.411, subdivision 7, applies to examinations of institutions under this chapter.
new text end

Sec. 35.

Minnesota Statutes 2022, section 58.13, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) No person acting as a residential mortgage originator or
servicer, including a person required to be licensed under this chapter, and no person exempt
from the licensing requirements of this chapter under section 58.04, except as otherwise
provided in paragraph (b), shall:

(1) fail to maintain a trust account to hold trust funds received in connection with a
residential mortgage loan;

(2) fail to deposit all trust funds into a trust account within three business days of receipt;
commingle trust funds with funds belonging to the licensee or exempt person; or use trust
account funds for any purpose other than that for which they are received;

(3) unreasonably delay the processing of a residential mortgage loan application, or the
closing of a residential mortgage loan. For purposes of this clause, evidence of unreasonable
delay includes but is not limited to those factors identified in section 47.206, subdivision
7, paragraph (d);

(4) fail to disburse funds according to its contractual or statutory obligations;

(5) fail to perform in conformance with its written agreements with borrowers, investors,
other licensees, or exempt persons;

(6) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product or
service;

(7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property
law;

(8) violate any provision of any other applicable state or federal law regulating residential
mortgage loans including, without limitation, sections 47.20 to 47.208 and 47.58;

(9) make or cause to be made, directly or indirectly, any false, deceptive, or misleading
statement or representation in connection with a residential loan transaction including,
without limitation, a false, deceptive, or misleading statement or representation regarding
the borrower's ability to qualify for any mortgage product;

(10) conduct residential mortgage loan business under any name other than that under
which the license or certificate of exemption was issued;

(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
the purpose of influencing the independent judgment of the appraiser with respect to the
value of real estate that is to be covered by a residential mortgage or is being offered as
security according to an application for a residential mortgage loan;

(12) issue any document indicating conditional qualification or conditional approval for
a residential mortgage loan, unless the document also clearly indicates that final qualification
or approval is not guaranteed, and may be subject to additional review;

(13) make or assist in making any residential mortgage loan with the intent that the loan
will not be repaid and that the residential mortgage originator will obtain title to the property
through foreclosure;

(14) provide or offer to provide for a borrower, any brokering or lending services under
an arrangement with a person other than a licensee or exempt person, provided that a person
may rely upon a written representation by the residential mortgage originator that it is in
compliance with the licensing requirements of this chapter;

(15) claim to represent a licensee or exempt person, unless the person is an employee
of the licensee or exempt person or unless the person has entered into a written agency
agreement with the licensee or exempt person;

(16) fail to comply with the record keeping and notification requirements identified in
section 58.14 or fail to abide by the affirmations made on the application for licensure;

(17) represent that the licensee or exempt person is acting as the borrower's agent after
providing the nonagency disclosure required by section 58.15, unless the disclosure is
retracted and the licensee or exempt person complies with all of the requirements of section
58.16;

(18) make, provide, or arrange for a residential mortgage loan that is of a lower investment
grade if the borrower's credit score or, if the originator does not utilize credit scoring or if
a credit score is unavailable, then comparable underwriting data, indicates that the borrower
may qualify for a residential mortgage loan, available from or through the originator, that
is of a higher investment grade, unless the borrower is informed that the borrower may
qualify for a higher investment grade loan with a lower interest rate and/or lower discount
points, and consents in writing to receipt of the lower investment grade loan;

For purposes of this section, "investment grade" refers to a system of categorizing
residential mortgage loans in which the loans are distinguished by interest rate or discount
points or both charged to the borrower, which vary according to the degree of perceived
risk of default based on factors such as the borrower's credit, including credit score and
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
bankruptcy or foreclosure;

(19) make, publish, disseminate, circulate, place before the public, or cause to be made,
directly or indirectly, any advertisement or marketing materials of any type, or any statement
or representation relating to the business of residential mortgage loans that is false, deceptive,
or misleading;

(20) advertise loan types or terms that are not available from or through the licensee or
exempt person on the date advertised, or on the date specified in the advertisement. For
purposes of this clause, advertisement includes, but is not limited to, a list of sample mortgage
terms, including interest rates, discount points, and closing costs provided by licensees or
exempt persons to a print or electronic medium that presents the information to the public;

(21) use or employ phrases, pictures, return addresses, geographic designations, or other
means that create the impression, directly or indirectly, that a licensee or other person is a
governmental agency, or is associated with, sponsored by, or in any manner connected to,
related to, or endorsed by a governmental agency, if that is not the case;

(22) violate section 82.77, relating to table funding;

(23) make, provide, or arrange for a residential mortgage loan all or a portion of the
proceeds of which are used to fully or partially pay off a "special mortgage" unless the
borrower has obtained a written certification from an authorized independent loan counselor
that the borrower has received counseling on the advisability of the loan transaction. For
purposes of this section, "special mortgage" means a residential mortgage loan originated,
subsidized, or guaranteed by or through a state, tribal, or local government, or nonprofit
organization, that bears one or more of the following nonstandard payment terms which
substantially benefit the borrower: (i) payments vary with income; (ii) payments of principal
or interest are not required or can be deferred under specified conditions; (iii) principal or
interest is forgivable under specified conditions; or (iv) where no interest or an annual
interest rate of two percent or less is charged in connection with the loan. For purposes of
this section, "authorized independent loan counselor" means a nonprofit, third-party
individual or organization providing home buyer education programs, foreclosure prevention
services, mortgage loan counseling, or credit counseling certified by the United States
Department of Housing and Urban Development, the Minnesota Home Ownership Center,
the Minnesota Mortgage Foreclosure Prevention Association, AARP, or NeighborWorks
America;

(24) make, provide, or arrange for a residential mortgage loan without verifying the
borrower's reasonable ability to pay the scheduled payments of the following, as applicable:
principal; interest; real estate taxes; homeowner's insurance, assessments, and mortgage
insurance premiums. For loans in which the interest rate may vary, the reasonable ability
to pay shall be determined based on a fully indexed rate and a repayment schedule which
achieves full amortization over the life of the loan. For all residential mortgage loans, the
borrower's income and financial resources must be verified by tax returns, payroll receipts,
bank records, or other similarly reliable documents.

Nothing in this section shall be construed to limit a mortgage originator's or exempt
person's ability to rely on criteria other than the borrower's income and financial resources
to establish the borrower's reasonable ability to repay the residential mortgage loan, including
criteria established by the United States Department of Veterans Affairs or the United States
Department of Housing and Urban Development for interest rate reduction refinancing loans
or streamline loans, or criteria authorized or promulgated by the Federal National Mortgage
Association or Federal Home Loan Mortgage Corporation; however, such other criteria
must be verified through reasonably reliable methods and documentation. The mortgage
originator's analysis of the borrower's reasonable ability to repay may include, but is not
limited to, consideration of the following items, if verified: (1) the borrower's current and
expected income; (2) current and expected cash flow; (3) net worth and other financial
resources other than the consumer's equity in the dwelling that secures the loan; (4) current
financial obligations; (5) property taxes and insurance; (6) assessments on the property; (7)
employment status; (8) credit history; (9) debt-to-income ratio; (10) credit scores; (11) tax
returns; (12) pension statements; and (13) employment payment records, provided that no
mortgage originator shall disregard facts and circumstances that indicate that the financial
or other information submitted by the consumer is inaccurate or incomplete. A statement
by the borrower to the residential mortgage originator or exempt person of the borrower's
income and resources or sole reliance on any single item listed above is not sufficient to
establish the existence of the income or resources when verifying the reasonable ability to
pay;

(25) engage in "churning." As used in this section, "churning" means knowingly or
intentionally making, providing, or arranging for a residential mortgage loan when the new
residential mortgage loan does not provide a reasonable, tangible net benefit to the borrower
considering all of the circumstances new text begin , new text end including the terms of both the new and refinanced
loans, the cost of the new loan, and the borrower's circumstances deleted text begin ; deleted text end new text begin . In order to demonstrate
a reasonable, tangible net benefit to the borrower, the circumstances at the time of the
application must be documented in writing and must be signed by the borrower prior to the
closing date;
new text end

(26) the first time a residential mortgage originator orally informs a borrower of the
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
which does not include an amount for payment of property taxes and hazard insurance, the
residential mortgage originator must inform the borrower that an additional amount will be
due for taxes and insurance and, if known, disclose to the borrower the amount of the
anticipated or actual periodic payments for property taxes and hazard insurance. This same
oral disclosure must be made each time the residential mortgage originator orally informs
the borrower of a different anticipated or actual periodic payment amount change from the
amount previously disclosed. A residential mortgage originator need not make this disclosure
concerning a refinancing loan if the residential mortgage originator knows that the borrower's
existing loan that is anticipated to be refinanced does not have an escrow account; or

(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
with any repayment option offered pursuant to the terms of the loan will result in negative
amortization during any six-month period.

(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally chartered
bank, savings bank, or credit union, an institution chartered by Congress under the Farm
Credit Act, or to a person making, providing, or arranging a residential mortgage loan
originated or purchased by a state agency or a tribal or local unit of government. This
paragraph supersedes any inconsistent provision of this chapter.

Sec. 36.

new text begin [58.141] REPORTS AND UNIQUE IDENTIFIER.
new text end

new text begin Subdivision 1. new text end

new text begin Mortgage call reports. new text end

new text begin A residential mortgage originator or servicer
must submit reports of condition to the Nationwide Multistate Licensing System and Registry.
Reports submitted under this subdivision must be in the form and contain the information
required by the Nationwide Multistate Licensing System and Registry.
new text end

new text begin Subd. 2. new text end

new text begin Report to Nationwide Multistate Licensing System and Registry. new text end

new text begin Subject
to section 58A.14, the commissioner must regularly report violations of this chapter, as well
as enforcement actions and other relevant information, to the Nationwide Multistate Licensing
System and Registry.
new text end

new text begin Subd. 3. new text end

new text begin Unique identifier; display. new text end

new text begin The unique identifier of any person originating a
residential mortgage loan must be clearly displayed on all residential mortgage loan
application forms, solicitations, or advertisements, including business cards or websites,
and any other documents the commissioner establishes by rule or order.
new text end

Sec. 37.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 2, is amended
to read:

Subd. 2.

Coerced debt.

(a) "Coerced debt" means all or a portion of debt in a debtor's
name that has been incurred as a result of:

(1) the use of the debtor's personal information without the debtor's knowledge,
authorization, or consent;

(2) the use or threat of force, intimidation, undue influence, deleted text begin harassment, deleted text end fraud, deception,
coercion, or other similar means against the debtor; or

(3) economic abuse perpetrated against the debtor.

(b) Coerced debt does not include secured debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 38.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 4, is amended
to read:

Subd. 4.

Debtor.

"Debtor" means a person who (1) is a victim of domestic abuse,
deleted text begin harassment deleted text end new text begin economic abuse new text end , or sex or labor trafficking, and (2) owes coerced debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 39.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 5, is amended
to read:

Subd. 5.

Documentation.

"Documentation" means deleted text begin a writing that identifies a debt or a
portion of a debt as coerced debt, describes the circumstances under which the coerced debt
was incurred, and takes the form of deleted text end :

(1) a police report;

(2) a Federal Trade Commission identity theft report;

(3) an order in a dissolution proceeding under chapter 518 that declares that one or more
debts are coerced; or

(4) a sworn written certification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 40.

Minnesota Statutes 2023 Supplement, section 332.71, subdivision 7, is amended
to read:

Subd. 7.

Economic abuse.

"Economic abuse" means behavior in the context of a domestic
relationship that controls, restrains, restricts, impairs, or interferes with the ability of a deleted text begin victim
of domestic abuse, harassment, or sex or labor trafficking deleted text end new text begin debtor new text end to acquire, use, or maintain
economic resources, including but not limited to:

(1) withholding or restricting access to, or the acquisition of, money, assets, credit, or
financial information;

(2) interfering with the victim's ability to work and earn wages; or

(3) exerting undue influence over a person's financial and economic behavior or decisions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 41.

Minnesota Statutes 2023 Supplement, section 332.72, is amended to read:

332.72 COERCED DEBT PROHIBITED.

new text begin (a) new text end A person is prohibited from causing another person to incur coerced debt.

new text begin (b) A person who causes another person to incur a coerced debt in violation of this
section is civilly liable to the creditor for the amount of the debt, or portion of the debt,
determined by a court to be coerced debt, plus the creditor's reasonable attorney fees and
costs, provided the creditor follows the procedures under section 332.74, subdivision 3,
paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 42.

Minnesota Statutes 2023 Supplement, section 332.73, subdivision 1, is amended
to read:

Subdivision 1.

Notification.

(a) Before taking an affirmative action under section 332.74,
a debtor must, by certified mail, notify a creditor that the debt or a portion of a debt on
which the creditor demands payment is coerced debt and request that the creditor cease all
collection activity on the coerced debt. The notification and request must be in writing and
include documentation. new text begin If not already included in documentation, the notification must
include a signed statement that includes:
new text end

new text begin (1) an assertion that the debtor is a victim of domestic abuse, economic abuse, or sex or
labor trafficking;
new text end

new text begin (2) a recitation of the facts supporting the claim that the debt is coerced; and
new text end

new text begin (3) if only a portion of the debt is claimed to be coerced debt, an itemization of the
portion of the debt that is claimed to be coerced debt.
new text end

new text begin (b) new text end The creditor, within 30 days of the date the notification and request is received, must
notify the debtor in writing of the creditor's decision to either immediately cease all collection
activity or continue to pursue collection. new text begin If a creditor ceases collection but subsequently
decides to resume collection activity, the creditor must notify the debtor ten days prior to
the date the collection activity resumes.
new text end

deleted text begin (b) If a creditor ceases collection but subsequently decides to resume collection activity,
the creditor must notify the debtor ten days prior to the date the collection activity resumes.
deleted text end

(c) A debtor must not proceed with an action under section 332.74 until the 30-day
period provided under paragraph (a) has expired.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 43.

Minnesota Statutes 2023 Supplement, section 332.74, subdivision 3, is amended
to read:

Subd. 3.

Relief.

(a) If a debtor shows by a preponderance of the evidence that the debtor
has been aggrieved by a violation of section 332.72 and the debtor has incurred coerced
debt, the debtor is entitled to one or more of the following:

(1) a declaratory judgment that the debt or portion of a debt is coerced debt;

(2) an injunction prohibiting the creditor from (i) holding or attempting to hold the debtor
liable for the debt or portion of a debt, or (ii) enforcing a judgment related to the coerced
debt; and

(3) an order dismissing any cause of action brought by the creditor to enforce or collect
the coerced debt from the debtor or, if only a portion of the debt is established as coerced
debt, an order directing that the judgment, if any, in the action be amended to reflect only
the portion of the debt that is not coerced debt.

(b) If the court orders relief for the debtor under paragraph (a), the court, after the
creditor's motion has been new text begin personally new text end served new text begin on the person who violated section 332.72, or
if personal service cannot be made, after service new text end by United States mail to the last known
address of the person deleted text begin who violated section 332.72 deleted text end new text begin and one-week published notice under
section 645.11 new text end , deleted text begin shall deleted text end new text begin must new text end issue a judgment in favor of the creditor against the person in
the amount of the debt or a portion thereof.

(c) This subdivision applies regardless of the judicial district in which the creditor's
action or the debtor's petition was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 44.

Minnesota Statutes 2023 Supplement, section 332.74, subdivision 5, is amended
to read:

Subd. 5.

Burden.

In any affirmative action taken under subdivision 1 or any affirmative
defense asserted in subdivision 4, the debtor bears the burden to show by a preponderance
of the evidence that the debtor incurred coerced debt. There is a presumption that the debtor
has incurred coerced debt if the person alleged to have caused the debtor to incur the coerced
debt has been deleted text begin criminally deleted text end convicted deleted text begin , entered a guilty plea, or entered an Alford plea under deleted text end
new text begin of or received a stay of adjudication for a violation of new text end section 609.27, 609.282, 609.322, or
609.527.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 45.

new text begin [332C.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the following terms have the
meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Collecting party. new text end

new text begin "Collecting party" means a party engaged in the collection
of medical debt. Collecting party does not include banks, credit unions, public officers,
garnishees, and other parties complying with a court order or statutory obligation to garnish
or levy a debtor's property.
new text end

new text begin Subd. 3. new text end

new text begin Debtor. new text end

new text begin "Debtor" means a person obligated or alleged to be obligated to pay
any debt.
new text end

new text begin Subd. 4. new text end

new text begin Medical debt. new text end

new text begin "Medical debt" means debt incurred primarily for medically
necessary health treatment or services. Medical debt does not include debt charged to a
credit card unless the credit card is issued under a credit plan offered solely for the payment
of health care treatment or services.
new text end

new text begin Subd. 5. new text end

new text begin Medically necessary. new text end

new text begin "Medically necessary" has the meaning given in section
62J.805, subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means any individual, partnership, association, or corporation.
new text end

Sec. 46.

new text begin [332C.02] PROHIBITED PRACTICES.
new text end

new text begin No collecting party shall:
new text end

new text begin (1) in a collection letter, publication, invoice, or any oral or written communication,
threaten wage garnishment or legal suit by a particular lawyer, unless the collecting party
has actually retained the lawyer to do so;
new text end

new text begin (2) use or employ sheriffs or any other officer authorized to serve legal papers in
connection with the collection of a claim, except when performing legally authorized duties;
new text end

new text begin (3) use or threaten to use methods of collection which violate Minnesota law;
new text end

new text begin (4) furnish legal advice to debtors or represent that the collecting party is competent or
able to furnish legal advice to debtors;
new text end

new text begin (5) communicate with debtors in a misleading or deceptive manner by falsely using the
stationery of a lawyer, forms or instruments which only lawyers are authorized to prepare,
or instruments which simulate the form and appearance of judicial process;
new text end

new text begin (6) publish or cause to be published any list of debtors, use shame cards or shame
automobiles, advertise or threaten to advertise for sale any claim as a means of forcing
payment thereof, or use similar devices or methods of intimidation;
new text end

new text begin (7) operate under a name or in a manner which falsely implies the collecting party is a
branch of or associated with any department of federal, state, county, or local government
or an agency thereof;
new text end

new text begin (8) transact business or hold itself out as a debt settlement company, debt management
company, debt adjuster, or any person who settles, adjusts, prorates, pools, liquidates, or
pays the indebtedness of a debtor, unless there is no charge to the debtor, or the pooling or
liquidation is done pursuant to a court order or under the supervision of a creditor's
committee;
new text end

new text begin (9) unless an exemption in the law exists, violate Code of Federal Regulations, title 12,
part 1006, while attempting to collect on any account, bill, or other indebtedness. For
purposes of this section, Public Law 95-109, and Code of Federal Regulations, title 12, part
1006, apply to collecting parties;
new text end

new text begin (10) communicate with a debtor by use of an automatic telephone dialing system or an
artificial or prerecorded voice after the debtor expressly informs the collecting party to cease
communication utilizing an automatic telephone dialing system or an artificial or prerecorded
voice. For purposes of this clause, an automatic telephone dialing system or an artificial or
prerecorded voice includes but is not limited to (i) artificial intelligence chatbots, and (ii)
the usage of the term under the Telephone Consumer Protection Act, United States Code,
title 47, section 227(b)(1)(A);
new text end

new text begin (11) in collection letters or publications, or in any oral or written communication, imply
or suggest that medically necessary health treatment or services will be denied as a result
of a medical debt;
new text end

new text begin (12) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
party to request that the debtor contact the collecting party, except a person who resides
with the debtor or a third party with whom the debtor has authorized with the collecting
party to place the request. This clause does not apply to a callback message left at the debtor's
place of employment which is limited solely to the collecting party's telephone number and
name;
new text end

new text begin (13) when attempting to collect a medical debt, fail to provide the debtor with the full
name of the collecting party, as registered with the secretary of state;
new text end

new text begin (14) fail to return any amount of overpayment from a debtor to the debtor or to the state
of Minnesota pursuant to the requirements of chapter 345;
new text end

new text begin (15) accept currency or coin as payment for a medical debt without issuing an original
receipt to the debtor and maintain a duplicate receipt in the debtor's payment records;
new text end

new text begin (16) attempt to collect any amount, including any interest, fee, charge, or expense
incidental to the charge-off obligation, from a debtor unless the amount is expressly
authorized by the agreement creating the medical debt or is otherwise permitted by law;
new text end

new text begin (17) falsify any documents with the intent to deceive;
new text end

new text begin (18) when initially contacting a Minnesota debtor by mail to collect a medical debt, fail
to include a disclosure on the contact notice, in a type size or font which is equal to or larger
than the largest other type of type size or font used in the text of the notice, that includes
and identifies the Office of the Minnesota Attorney General's general telephone number,
and states: "You have the right to hire your own attorney to represent you in this matter.";
new text end

new text begin (19) commence legal action to collect a medical debt outside the limitations period set
forth in section 541.053;
new text end

new text begin (20) report to a credit reporting agency any medical debt which the collecting party
knows or should know is or was originally owed to a health care provider, as defined in
section 62J.805, subdivision 2; or
new text end

new text begin (21) challenge a debtor's claim of exemption to garnishment or levy in a manner that is
baseless, frivolous, or otherwise in bad faith.
new text end

Sec. 47.

new text begin [332C.03] MEDICAL DEBT REPORTING PROHIBITED.
new text end

new text begin (a) A collecting party is prohibited from reporting medical debt to a consumer reporting
agency.
new text end

new text begin (b) A consumer reporting agency is prohibited from making a consumer report containing
an item of information that the consumer reporting agency knows or should know concerns:
new text end

new text begin (1) medical information; or
new text end

new text begin (2) debt arising from:
new text end

new text begin (i) the provision of medical care, treatment, services, devices, medicines; or
new text end

new text begin (ii) procedures to maintain, diagnose, or treat a person's physical or mental health.
new text end

new text begin (c) For purposes of this section, "consumer report," "consumer reporting agency," and
"medical information" have the meanings given in the Fair Credit Reporting Act, United
States Code, title 15, section 1681a.
new text end

new text begin (d) This section applies to collection agencies and debt buyers licensed under chapter
332.
new text end

Sec. 48.

new text begin [332C.04] DEFENDING MEDICAL DEBT CASES.
new text end

new text begin A debtor who successfully defends against a claim for payment of medical debt that is
alleged by a collecting party must be awarded the debtor's costs, including reasonable
attorney fees as determined by the court, incurred in defending against the collecting party's
claim for debt payment.
new text end

Sec. 49.

new text begin [332C.05] ENFORCEMENT.
new text end

new text begin (a) The attorney general may enforce this chapter under section 8.31.
new text end

new text begin (b) A collecting party that violates this chapter is strictly liable to the debtor in question
for the sum of:
new text end

new text begin (1) actual damage sustained by the debtor as a result of the violation;
new text end

new text begin (2) additional damages as the court may allow, but not exceeding $1,000 per violation;
and
new text end

new text begin (3) in the case of any successful action to enforce the foregoing, the costs of the action,
together with reasonable attorney fees as determined by the court.
new text end

new text begin (c) A collecting party that willfully and maliciously violates this chapter is strictly liable
to the debtor for three times the sums allowable under paragraph (b), clauses (1) and (2).
new text end

new text begin (d) The dollar amount limit under paragraph (b), clause (2), changes on July 1 of each
even-numbered year in an amount equal to changes made in the Consumer Price Index,
compiled by the United States Bureau of Labor Statistics. The Consumer Price Index for
December 2024 is the reference base index. If the Consumer Price Index is revised, the
percentage of change made under this section must be calculated on the basis of the revised
Consumer Price Index. If a Consumer Price Index revision changes the reference base index,
a revised reference base index must be determined by multiplying the reference base index
that is effective at the time by the rebasing factor furnished by the Bureau of Labor Statistics.
new text end

new text begin (e) If the Consumer Price Index is superseded, the Consumer Price Index referred to in
this section is the Consumer Price Index represented by the Bureau of Labor Statistics as
most accurately reflecting changes in the prices paid by consumers for consumer goods and
services.
new text end

new text begin (f) The attorney general must publish the base reference index under paragraph (c) in
the State Register no later than September 1, 2024. The attorney general must calculate and
publish the revised Consumer Price Index under paragraph (c) in the State Register no later
than September 1 each even-numbered year.
new text end

new text begin (g) A collecting party may not be held liable in any action brought under this section if
the collecting party shows by a preponderance of evidence that the violation: (1) was not
intentional and resulted from a bona fide error made notwithstanding the maintenance of
procedures reasonably adopted to avoid any such error; or (2) was the result of inaccurate
or incorrect information provided to the collecting party by a health care provider, as defined
in section 62J.805, subdivision 3; a health carrier, as defined in section 62A.011, subdivision
2; or another collecting party currently or previously engaged in collection of the medical
debt in question.
new text end

Sec. 50.

Minnesota Statutes 2022, section 519.05, is amended to read:

519.05 LIABILITY OF deleted text begin HUSBAND AND WIFE deleted text end new text begin SPOUSES new text end .

(a) A spouse is not liable to a creditor for any debts of the other spouse. deleted text begin Where husband
and wife are living together, they shall be jointly and severally liable for necessary medical
services that have been furnished to either spouse, including any claims arising under section
246.53, 256B.15, 256D.16, or 261.04, and necessary household articles and supplies furnished
to and used by the family. deleted text end new text begin Spouses are joint and severally liable for claims arising under
section 256B.15. new text end Notwithstanding this paragraph, in a proceeding under chapter 518 the
court may apportion such debt between the spouses.

(b) Either spouse may close a credit card account or other unsecured consumer line of
credit on which both spouses are contractually liable, by giving written notice to the creditor.

Sec. 51.

Minnesota Statutes 2022, section 550.37, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Bible and musical instrument deleted text end new text begin Sacred possessions new text end .

The deleted text begin family deleted text end Bible, deleted text begin library,
and musical instruments deleted text end new text begin Torah, Qur'an, prayer rug, other religious items in an aggregate
amount not exceeding $2,000 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 52.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Library. new text end

new text begin A personal library in an aggregate amount not exceeding $2,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 53.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Musical instruments. new text end

new text begin Musical instruments in an aggregate amount not
exceeding $2,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 54.

Minnesota Statutes 2022, section 550.37, subdivision 4, is amended to read:

Subd. 4.

Personal goods.

(a) All wearing apparel, one watch, utensils, and foodstuffs
of the debtor and the debtor's family.

(b) Household furniture, household appliances, deleted text begin phonographs, radio and television
receivers deleted text end new text begin radios, computers, tablets, televisions, printers, cell phones, smart phones, and
other consumer electronics new text end of the debtor and the debtor's family, not exceeding $11,250 in
value.

(c) The debtor's aggregate interest, not exceeding $3,062.50 in value, in deleted text begin wedding rings
or other religious or culturally recognized symbols of marriage exchanged between the
debtor and spouse at the time of the marriage and in the debtor's possession deleted text end new text begin jewelry new text end .

The exemption provided by this subdivision may not be waived except with regard to
purchase money security interests. Except for a pawnbroker's possessory lien, a nonpurchase
money security interest in the property exempt under this subdivision is void.

If a debtor has property of the type which would qualify for the exemption under clause
(b), of a value in excess of $11,250 an itemized list of the exempt property, together with
the value of each item listed, shall be attached to the security agreement at the time a security
interest is taken, and a creditor may take a nonpurchase money security interest in the excess
over $11,250 by requiring the debtor to select the exemption in writing at the time the loan
is made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 55.

Minnesota Statutes 2022, section 550.37, subdivision 6, is amended to read:

Subd. 6.

Tools of trade.

The tools, implements, machines, new text begin vehicles, new text end instruments, office
furniture, stock in trade, and library reasonably necessary in the trade, business, or profession
of the debtor, not exceeding $12,500 in value.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 56.

Minnesota Statutes 2022, section 550.37, subdivision 12a, is amended to read:

Subd. 12a.

Motor vehicles.

One new text begin of the following: (1) one new text end motor vehicle new text begin , new text end to the extent
of a value not exceeding deleted text begin $5,000 deleted text end new text begin $10,000 new text end ; new text begin (2) one motor vehicle that is regularly used by or
for the benefit of a physically disabled person, as defined under section 169.345, subdivision
2, to the extent of a value not exceeding $25,000; new text end or new text begin (3) new text end one motor vehicle new text begin , new text end to the extent of
a value not exceeding deleted text begin $50,000 deleted text end new text begin $100,000, new text end that has been new text begin designed or new text end modified deleted text begin , at a cost of
not less than $3,750, deleted text end to accommodate the deleted text begin physical deleted text end disability making a disabled person
eligible for a certificate authorized by section 169.345.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 57.

Minnesota Statutes 2022, section 550.37, subdivision 14, is amended to read:

Subd. 14.

Public assistance.

All government assistance based on need, and the earnings
or salary of a person who is a recipient of government assistance based on need, shall be
exempt from all claims of creditors including any contractual setoff or security interest
asserted by a financial institution. For the purposes of this chapter, government assistance
based on need includes but is not limited to Minnesota family investment program deleted text begin , deleted text end new text begin ; new text end
Supplemental Security Income deleted text begin , deleted text end new text begin ; new text end medical assistance deleted text begin , deleted text end new text begin received by the person or by the person's
dependent child; new text end MinnesotaCare deleted text begin , deleted text end new text begin received by the person or by the person's dependent child; new text end
payment of Medicare part B premiums or receipt of part D extra help deleted text begin , deleted text end new text begin ; new text end MFIP diversionary
work program deleted text begin , deleted text end new text begin ; new text end work participation cash benefit deleted text begin , deleted text end new text begin ; new text end Minnesota supplemental assistance deleted text begin , deleted text end new text begin ; new text end
emergency Minnesota supplemental assistance deleted text begin , deleted text end new text begin ; new text end general assistance deleted text begin , deleted text end new text begin ; new text end emergency general
assistance deleted text begin , deleted text end new text begin ; new text end emergency assistance or county crisis funds deleted text begin , deleted text end new text begin ; new text end energy or fuel assistance deleted text begin , and deleted text end new text begin ; new text end
Supplemental Nutrition Assistance Program (SNAP) new text begin ; and the portion of any tax refund
attributable to a state or federal tax credit, including but not limited to the earned income
tax credit, state or federal child tax credit, Minnesota working family credit, renter's credit,
or any low-income tax credit new text end . The salary or earnings of any debtor who is or has been an
eligible recipient of government assistance based on need, or an inmate of a correctional
institution shall, upon the debtor's return to private employment or farming after having
been an eligible recipient of government assistance based on need, or an inmate of a
correctional institution, be exempt from attachment, garnishment, or levy of execution for
a period of six months after the debtor's return to employment or farming and after all public
assistance for which eligibility existed has been terminated. new text begin Any portion of an income tax
refund consisting of income that was exempt when the income was earned is also exempt
under this subdivision. new text end The exemption provisions contained in this subdivision also apply
deleted text begin for 60 days deleted text end after deposit in any financial institution, whether in a single or joint account. In
tracing the funds, the first-in first-out method of accounting shall be used. The burden of
establishing that funds are exempt rests upon the debtor. Agencies distributing government
assistance and the correctional institutions shall, at the request of creditors, inform them
whether or not any debtor has been an eligible recipient of government assistance based on
need, or an inmate of a correctional institution, within the preceding six months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 58.

Minnesota Statutes 2022, section 550.37, subdivision 20, is amended to read:

Subd. 20.

Traceable funds.

The exemption of funds from creditors' claims, provided
by subdivisions 9, 10, 11, 15, new text begin 22, new text end and 24, shall not be affected by the subsequent deposit of
the funds in a bank or any other financial institution, whether in a single or joint account,
if the funds are traceable to deleted text begin their deleted text end new text begin the funds' new text end exempt source. In tracing the funds, the first-in
first-out method of accounting shall be used. The burden of establishing that funds are
exempt rests upon the debtor. No bank or other financial institution shall be liable for
damages for complying with process duly issued out of any court for the collection of a
debt even if the funds affected by the process are subsequently determined to have been
exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 59.

Minnesota Statutes 2022, section 550.37, subdivision 22, is amended to read:

Subd. 22.

Rights of action.

Rights of action new text begin or money received new text end for injuries to the person
of the debtor or of a relative whether or not resulting in death. new text begin Injuries to the person include
physical, mental, and emotional injuries. The exemption under this subdivision applies to
the right to receive, annuities being paid, and money already received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 60.

Minnesota Statutes 2022, section 550.37, subdivision 23, is amended to read:

Subd. 23.

Life insurance aggregate interest.

The debtor's aggregate interest not to
exceed in value $10,000 in any accrued deleted text begin dividend deleted text end new text begin dividends new text end or interest under or loan value
of any unmatured life insurance deleted text begin contract deleted text end new text begin contracts new text end owned by the debtor under which the
insured is the debtor or an individual of whom the debtor is a dependent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 61.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 27. new text end

new text begin Household tools and equipment. new text end

new text begin The debtor's aggregate interest, not to
exceed $3,000, in household tools and equipment, including but not limited to hand and
power tools, snow removal equipment, and lawnmowers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 62.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 28. new text end

new text begin Property tax refunds. new text end

new text begin Any refund due under chapter 290A, up to a present
value of $3,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 63.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 29. new text end

new text begin Funds in a depository account. new text end

new text begin An amount up to an aggregate of $4,000 in
financial institutions in which the debtor has a depository account, regardless of the sources
of the money, is exempt from garnishment under sections 571.91 to 571.915. The exemption
under this subdivision must not be claimed in conjunction with the exemption under
subdivision 30.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to
garnishment levied on or after that date.
new text end

Sec. 64.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 30. new text end

new text begin Wild card exemption in bankruptcy. new text end

new text begin In a bankruptcy, a debtor may exempt
any property, including money in a bank account, up to $4,000 in value. A debtor is
prohibited from claiming the exemption under this subdivision if the debtor is already
protecting money in a bank account under subdivision 29, and the debtor is prohibited from
using this subdivision in conjunction with subdivision 29.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemptions
claimed on or after that date.
new text end

Sec. 65.

new text begin [550.3711] MOTOR VEHICLE; BANKRUPTCY DEBTOR'S RIGHT TO
RETAIN.
new text end

new text begin Subdivision 1. new text end

new text begin No default. new text end

new text begin If a buyer does not default in performing the buyer's
obligations under the contract, the seller or holder is prohibited from (1) accelerating the
maturity of part or the entire amount due under the contract, or (2) repossessing the motor
vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Bankruptcy. new text end

new text begin (a) Neither of the following constitutes a default in the performance
of the buyer's obligations under the contract: (1) the buyer or another individual liable under
the contract files a petition commencing a case for bankruptcy under United States Code,
title 11; or (2) the buyer or another individual liable under the contract is a debtor in
bankruptcy.
new text end

new text begin (b) The act or status under paragraph (a), clauses (1) and (2), with respect to the buyer
or another individual liable on the contract, must not be used by a seller or holder to: (1)
accelerate the maturity of a portion of or the entire amount due under the contract; or (2)
repossess the motor vehicle.
new text end

new text begin (c) A contract provision that states an act or status under paragraph (a), clauses (1) and
(2), with respect to the buyer or another individual liable on the contract, constitutes a default
is void and unenforceable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 66.

Minnesota Statutes 2022, section 550.39, is amended to read:

550.39 EXEMPTION OF INSURANCE POLICIES.

The net amount payable to any insured or to any beneficiary under any policy of accident
or disability insurance or under accident or disability clauses attached to any policy of life
insurance shall be exempt and free and clear from the claims of all creditors of such insured
or such beneficiary and from all legal and judicial processes of execution, attachment,
garnishment, or otherwise new text begin , up to a total amount of $1,000,000 per claim and subsequent
award new text end .

Sec. 67.

Minnesota Statutes 2022, section 563.01, subdivision 3, is amended to read:

Subd. 3.

new text begin Court fee waiver; new text end authorization deleted text begin of in forma pauperis deleted text end .

(a) Any court of the
state of Minnesota or any political subdivision thereof may authorize the commencement
or defense of any civil action, or appeal therein, without prepayment of fees, costs and
security for costs by a natural person who makes affidavit stating (a) the nature of the action,
defense or appeal, (b) a belief that affiant is entitled to redress, and (c) that affiant is
financially unable to pay the fees, costs and security for costs.

(b) Upon a finding by the court that the action is not of a frivolous nature, the court shall
allow the person to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if the affidavit is
substantially in the language required by this subdivision and is not found by the court to
be untrue. Persons meeting the requirements of this subdivision include, but are not limited
to, a person who is receiving public assistance described in section 550.37, subdivision 14,
who is represented by an attorney on behalf of a civil legal services program or a volunteer
attorney program based on indigency, or who has an annual income not greater than 125
percent of the poverty line established under United States Code, title 42, section 9902(2),
except as otherwise provided by section 563.02.

(c) If, at commencement of the action, the court finds that a party does not meet the
eligibility criteria under paragraph (b), but the court also finds that the party is not able to
pay all of the fees, costs, and security for costs, the court may order payment of a fee of $75
or partial payment of the fees, costs, and security for costs, to be paid as directed by the
court.

The court administrator shall transmit any fees or payments to the commissioner of
management and budget for deposit in the state treasury and credit to the general fund.

Sec. 68.

Minnesota Statutes 2022, section 563.01, subdivision 4, is amended to read:

Subd. 4.

Payment of expenses.

Upon order of the court, the court administrator and the
sheriff of any Minnesota county shall perform their duties without charge to the person
proceeding deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end . The court shall direct payment of the
reasonable expense of service of process pursuant to subdivision 2 if served by a private
process server, if the sheriff is unavailable, or by publication.

Sec. 69.

Minnesota Statutes 2022, section 563.01, subdivision 8, is amended to read:

Subd. 8.

Appellate briefs.

In any case on appeal the appellate court shall, upon granting
permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end following application in
the manner provided in subdivision 3, direct payment of the reasonable expenses incurred
in obtaining the record and reproducing the appellate briefs.

Sec. 70.

Minnesota Statutes 2022, section 563.01, subdivision 9, is amended to read:

Subd. 9.

Rescinding deleted text begin in forma pauperis status deleted text end new text begin court fee waiver new text end .

Upon motion, the
court may rescind deleted text begin its deleted text end permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if deleted text begin it deleted text end new text begin
the court new text end finds the allegations of poverty contained in the affidavit are untrue, or if, following
commencement of the action, the party becomes able to pay the fees, costs and security for
the costs. In such cases, the court may direct the party to pay to the court administrator any
costs allowing the action to proceed. The court administrator shall transmit the costs to the
commissioner of management and budget for deposit in the state treasury and credit them
to the general fund.

Sec. 71.

Minnesota Statutes 2022, section 563.01, subdivision 10, is amended to read:

Subd. 10.

Judgment.

Judgment may be rendered for costs at the conclusion of the action
as in other cases. In the event any person recovers moneys by either settlement or judgment
as a result of commencing or defending an action deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end ,
the costs deferred and the expenses directed by the court to be paid under this section shall
be included in such moneys and shall be paid directly to the court administrator by the
opposing party. The court administrator shall transmit the costs to the commissioner of
management and budget for deposit in the state treasury and credit them to the general fund.

Sec. 72.

Minnesota Statutes 2022, section 563.02, subdivision 2, is amended to read:

Subd. 2.

Inmate request to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end .

(a) An inmate
who wishes to commence a civil action deleted text begin by proceeding in forma pauperis deleted text end new text begin with court fee
waived new text end must meet the following requirements, in addition to the requirements of section
563.01, subdivision 3:

(1) exhaust the inmate complaint procedure developed under the commissioner of
corrections policy and procedure before commencing a civil action against the department,
and state in the application to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end that the inmate
has done so; and

(2) include the following information in an affidavit submitted under section 563.01:

(i) a statement that the inmate's claim is not substantially similar to a previous claim
brought by the inmate against the same party, arising from the same operative facts, and in
which there was an action that operated as an adjudication on the merits;

(ii) complete information on the inmate's identity, the nature and amount of the inmate's
income, spouse's income, if available to the inmate, real property owned by the inmate, and
the inmate's bank accounts, debts, monthly expenses, and number of dependents; and

(iii) the most recent monthly statement provided by the commissioner of corrections
showing the balance in the inmate's inmate account.

(b) The inmate shall also attach a written authorization for the court to obtain at any
time during pendency of the present action, without further authorization from the inmate,
a current statement of the inmate's inmate account balance, if needed to determine eligibility
to proceed with bringing a civil action deleted text begin in forma pauperis deleted text end new text begin with court fees waived new text end . An inmate
who has no funds in an inmate account satisfies the requirement of section 563.01,
subdivision 3, clause (c).

(c) An inmate who seeks to proceed as a plaintiff deleted text begin in forma pauperis deleted text end new text begin with court fees
waived new text end must file with the court the complaint in the action and the affidavit under this
section before serving the complaint on an opposing party.

(d) An inmate who has funds in an inmate account may only proceed as a plaintiff in a
civil action by paying the lesser of:

(1) the applicable court filing fee; or

(2) 50 percent of the balance shown in the inmate's account according to the statement
filed with the court under this subdivision, consistent with the requirements of section
243.23, subdivision 3.

(e) If an inmate elects to proceed under paragraph (d), the court shall notify the
commissioner of corrections to withdraw from the inmate's account the amount required
under this section and forward the amount to the court administrator in the county where
the action was commenced. The court shall also notify the commissioner of corrections of
the amount of the filing fee remaining unpaid. The commissioner shall continue making
withdrawals from the inmate's account and forwarding the amounts withdrawn to the court
administrator, at intervals as the applicable funds in the inmate's account equal at least $10,
until the entire filing fee and any costs have been paid in full.

Sec. 73.

Minnesota Statutes 2022, section 571.72, subdivision 6, is amended to read:

Subd. 6.

Bad faith claim.

If, in a proceeding brought under new text begin subdivision 9, new text end section 571.91,
or a similar proceeding under this chapter to determine a claim of exemption, the claim of
exemption is not upheld, and the court finds that it was asserted in bad faith, the creditor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
the court finds that the creditor disregarded the claim of exemption in bad faith, the debtor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. The underlying judgment shall be modified
to reflect assessment of damages, costs, and attorney fees. However, if the party in whose
favor a penalty assessment is made is not actually indebted to that party's attorney for fees,
the attorney's fee award shall be made directly to the attorney and if not paid an appropriate
judgment in favor of the attorney shall be entered.

Sec. 74.

Minnesota Statutes 2022, section 571.72, subdivision 8, is amended to read:

Subd. 8.

Exemption notice.

In every garnishment where the debtor is a natural person,
the debtor shall be provided with a garnishment exemption notice. If the creditor is garnishing
earnings, the earnings exemption notice provided in section 571.924 must be served ten or
more days before the service of the first garnishment summons. If the creditor is garnishing
funds in a financial institution, the exemption notice provided in section 571.912 must be
served with the garnishment summons. In all other cases, the exemption notice must be in
the following form and served on the debtor with a copy of the garnishment summons.

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
against
. (Debtor)		EXEMPTION NOTICE
and
. (Garnishee)

A Garnishment Summons is being served upon you. Some of your property may be
exempt and cannot be garnished. The following is a list of some of the more common
exemptions. It is not complete and is subject to section 550.37 of the Minnesota Statutes
and other state and federal laws. The dollar amounts contained in this list are subject to the
provisions of section 550.37, subdivision 4a, at the time of garnishment. If you have questions
about an exemption, you should obtain legal advice.

(1) a homestead or the proceeds from the sale of a homestead;

(2) household furniture, appliances, phonographs, radios, and televisions up to a total
current value of $5,850;

(3) a manufactured (mobile) home used as your home;

(4) one motor vehicle currently worth less than $2,600 after deducting any security
interest;

(5) farm machinery used by an individual principally engaged in farming, or tools,
machines, or office furniture used in your business or trade. This exemption is limited to
$13,000;

(6) relief based on need. This includes:

(i) Minnesota Family Investment Program (MFIP) and Work First Program;

(ii) Medical Assistance (MA) new text begin , whether received by you or by your dependent child new text end ;

(iii) General Assistance (GA);

(iv) Emergency General Assistance (EGA);

(v) Minnesota Supplemental AID (MSA);

(vi) MSA-Emergency Assistance (MSA-EA);

(vii) Supplemental Security Income (SSI);

(viii) Energy Assistance; and

(ix) Emergency Assistance (EA);

(7) Social Security benefits;

(8) unemployment benefits, workers' compensation, or veteran's benefits;

(9) an accident, disability, or retirement pension or annuity;

(10) life insurance proceeds;

(11) earnings of your minor child; and

(12) money from a claim for damage or destruction of exempt property (such as household
goods, farm tools, business equipment, a manufactured (mobile) home, or a car).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemption
notices provided on or after that date.
new text end

Sec. 75.

Minnesota Statutes 2022, section 571.72, subdivision 9, is amended to read:

Subd. 9.

Motion to determine objections.

new text begin (a) This subdivision applies to all garnishment
proceedings governed by this chapter. An objection regarding a garnishment must be
interposed as provided in section 571.914, subdivision 1, in the form provided under section
571.914, subdivision 2.
new text end

new text begin (b) new text end Upon motion of any party in interest, on notice, the court shall determine the validity
of any claim of exemption and may make any order necessary to protect the rights of those
interested.

new text begin (c) Upon receipt of a claim of exemption by the debtor, the creditor must comply with
the claim or interpose an objection within ten business days of the date the exemption claim
was received. An objection must be interposed by:
new text end

new text begin (1) in the district court that issued the judgment, filing the Notice of Objection and
requesting a hearing; and
new text end

new text begin (2) mailing or delivering one copy of the Notice of Objection and Notice of Hearing to
the garnishee and one copy of the Notice of Objection and Notice of Hearing to the debtor.
new text end

new text begin (d) For the purposes of subdivision 6, there is a rebuttable presumption of bad faith if
the court finds that the creditor failed to comply with the requirements of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 76.

Minnesota Statutes 2022, section 571.72, subdivision 10, is amended to read:

Subd. 10.

Exemption notice for prejudgment garnishment.

EXEMPTION NOTICE

IMPORTANT NOTICE: A garnishment summons may be served on your employer,
bank, or other third parties without any further court proceeding or notice to you.
See the attached Notice of Intent to Garnish for more information.

The following money and wages may be protected (the legal word is exempt) from
garnishment:

1. Financial institutions/bank

Some of the money in your account may be protected because you receive government
benefits from one or more of the following places:

MFIP - Minnesota family investment program,

MFIP Diversionary Work Program,

Work participation cash benefit,

GA - general assistance,

EA - emergency assistance,

MA - medical assistance, new text begin whether received by you or by your dependent child,
new text end

EGA - emergency general assistance or county crisis funds,

MSA - Minnesota supplemental aid,

MSA-EA - MSA emergency assistance,

Supplemental Nutrition Assistance Program (SNAP),

SSI - Supplemental Security Income,

MinnesotaCare, new text begin whether received by you or by your dependent child,
new text end

Medicare Part B premium payments,

Medicare Part D extra help,

Energy or fuel assistance,

Social Security benefits,

Unemployment benefits,

Workers' compensation,

Veterans benefits.

Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK
STATEMENTS that show what was in your account for the past 60 days may give the
creditor enough information about your exemption claim to avoid a garnishment.

2. Earnings

All or some of your earnings may be completely protected from garnishment if:

All of your earnings (wages) may be protected if:

You get government benefits (see list of government benefits)

You currently receive other assistance based on need

You have received government benefits in the last six months

You were in jail or prison in the last six months

Your wages are only protected for 60 days after they are deposited in your account so
it would be helpful if you immediately send the undersigned creditor a copy of BANK
STATEMENTS that show what was in your account for the past 60 days.

Some of your earnings (wages) may be protected if:

If all of your earnings are not exempt, some of your earnings may still be protected for
20 days after they were deposited in your account. The amount protected is the larger amount
of:

75 percent of your wages (after taxes are taken out); or

(insert the sum of the current federal minimum wage) multiplied by 40.

The money from the following are also exempt for 20 days after they are deposited
in your account.

An accident, disability, or retirement pension or annuity

Payments to you from a life insurance policy

Earnings of your child who is under 18 years of age

Child support

Money paid to you from a claim for damage or destruction of property. Property
includes household goods, farm tools or machinery, tools for your job, business equipment,
a mobile home, a car, a musical instrument, a pew or burial lot, clothes, furniture, or
appliances.

Death benefits paid to you.

YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU
RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage
garnishment. BUT if the creditor garnishes your bank account, you will not get the
notice until AFTER the account has been frozen. IF YOU BELIEVE THE MONEY
IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU SHOULD
IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD TELL THEM
WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT TO SEE IF
YOU CAN AVOID GARNISHMENT.

Creditor .

Creditor address .

Creditor telephone number .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemption
notices provided on or after that date.
new text end

Sec. 77.

Minnesota Statutes 2022, section 571.911, is amended to read:

571.911 EXEMPTION NOTICE; DUTY OF FINANCIAL INSTITUTION.

new text begin (a) new text end If the garnishment summons is used to garnish funds of a debtor who is a natural
person and if the funds to be garnished are held on deposit at a financial institution, the
creditor shall serve with the garnishee summons a notice, instructions, and two copies of
an exemption notice. The notice, instructions, and exemption notices must be substantially
in the forms set forth in section 571.912. Failure of the creditor to send the exemption notice
renders the garnishment void, and the financial institution shall take no action.

new text begin (b) Unless the total amount in the depository accounts under the debtor's name is less
than the amount specified under section 550.37, subdivision 29, new text end upon receipt of the
garnishment summons and exemption notices, the financial institution shall retain as much
of the amount under section 571.73 as the financial institution has on deposit owing to the
debtor, but not more than 110 percent of the creditor's claim. new text begin If the amount in the account
does not exceed the amount specified under section 550.37, subdivision 29, the bank must
notify the creditor that no money is retained.
new text end

new text begin (c) If the creditor receives notice from the financial institution that no money is retained,
the creditor is prohibited from sending the notice under section 571.912.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 78.

Minnesota Statutes 2022, section 571.914, subdivision 1, is amended to read:

Subdivision 1.

Objections and request for hearing.

deleted text begin An objection shall be interposed,
within six business days of receipt by the creditor of an exemption claim from the debtor,
by mailing or delivering one copy of the Notice of Objection and Notice of Hearing to the
financial institution and one copy of the Notice of Objection and Notice of Hearing to the
debtor.
deleted text end

new text begin (a) new text end The Notice of Objection and Notice of Hearing form must be substantially in the
form set out in subdivision 2.

new text begin (b) new text end The court administrator may charge a fee of $1 for the filing of a Notice of Objection
and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, the
court administrator shall schedule the matter for hearing no sooner than five business days
but no later than seven business days from the date of filing. A debtor may request
continuance of the hearing by notifying the creditor and the court. The court shall schedule
the continued hearing within seven days of the original hearing date.

new text begin (c) new text end An order stating whether the debtor's funds are exempt shall be issued by the court
within three days of the date of the hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 79.

Minnesota Statutes 2022, section 571.92, is amended to read:

571.92 GARNISHMENT OF EARNINGS.

Sections 571.921 to 571.926 relate to the garnishment of earnings. new text begin The exemptions
available under section 550.37 apply to the garnishment of earnings if the debtor is a resident
of Minnesota and the debtor's place of employment is in Minnesota, regardless of where
the employer is domiciled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 80.

Minnesota Statutes 2022, section 571.921, is amended to read:

571.921 DEFINITIONS.

For purposes of sections 571.921 to deleted text begin 571.926 deleted text end new text begin 571.927 new text end , the following terms have the
meanings given them:

(a) "Earnings" means:

(1) compensation paid or payable to an employee new text begin , independent contractor, or
self-employed person new text end for personal service whether denominated as wages, salary,
commissions, bonus, new text begin payments, profit-sharing distribution, severance payment, fees, new text end or
otherwise, and includes periodic payments pursuant to a pension or retirement program;

(2) compensation paid or payable to the producer for the sale of agricultural products;
livestock or livestock products; milk or milk products; or fruit or other horticultural products
produced when the producer is operating a family farm, a family farm corporation, or an
authorized farm corporation, as defined in section 500.24, subdivision 2; or

(3) maintenance as defined in section 518.003, subdivision 3a.

(b) "Disposable earnings" means that part of the earnings of an individual remaining
after the deduction from those earnings of amounts required by law to be withheld.

(c) "Employee" means an individual deleted text begin who performs services subject to the right of the
employer to control both what is done and how it is done. deleted text end new text begin , whether currently or formerly
employed, who is owed earnings and who is treated by an employer as an employee for
federal employment tax purposes.
new text end

(d) "Employer" means a person deleted text begin for whom an individual performs services as an employee deleted text end new text begin
who owes or will owe earnings to an employee or independent contractor new text end .

new text begin (e) "Independent contractor" means an individual who (1) receives or is owed earnings
from an employer through periodic payments, and (2) is not treated by the employer as an
employee for federal employment tax purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 81.

Minnesota Statutes 2022, section 571.922, is amended to read:

571.922 LIMITATION ON WAGE GARNISHMENT.

(a) Unless the judgment is for child support, the maximum part of the aggregate
disposable earnings of an individual for any pay period subjected to garnishment may not
exceed the lesser of:

(1) 25 percent of the debtor's disposable earnings new text begin , if the debtor's weekly income exceeds
120 times the greater of the hourly wage described in section 571.922, paragraph (a), clause
(4) new text end ; deleted text begin or
deleted text end

(2) new text begin 15 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
80 times, but is less than or equal to 120 times, the greater of the hourly wages described
in section 571.922, paragraph (a), clause (4); or
new text end

new text begin (3) five percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
40 times, but is less than or equal to 80 times, the greater of the hourly wages described in
section 571.922, paragraph (a), clause (4).
new text end

new text begin (b) new text end The amount by which the debtor's disposable earnings exceed the greater of:

deleted text begin (i) deleted text end new text begin (1) new text end 40 times the hourly wage described in section 177.24, subdivision 1, paragraph
(b), clause (1), item (iii); or

deleted text begin (ii) deleted text end new text begin (2) new text end 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the
Fair Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The
calculation of the amount that is subject to garnishment must be based on the hourly wage
in effect at the time the earnings are payable, times the number of work weeks in the pay
period. When a pay period consists of other than a whole number of work weeks, each day
of that pay period in excess of the number of completed work weeks shall be counted as a
fraction of a work week equal to the number of excess workdays divided by the number of
days in the normal work week.

deleted text begin (b) deleted text end new text begin (c) new text end If the judgment is for child support, the garnishment may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received).

Wage garnishments on judgments for child support are effective until the judgments are
satisfied if the judgment creditor is a county and the employer is notified by the county
when the judgment is satisfied.

deleted text begin (c) deleted text end new text begin (d) new text end No court may make, execute, or enforce an order or any process in violation of
this section.

Sec. 82.

Minnesota Statutes 2022, section 571.924, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

The creditor shall serve upon the debtor, no less than ten
days before the service of the garnishment summons, a notice that a summons may be issued.
The notice shall: (1) be substantially in the form set out in section 571.925; (2) be served
personally, in the manner of a summons and complaint, or by first class mail to the last
known address of the debtor; (3) inform the debtor that a garnishment summons may be
served on the debtor's employer after ten days, and that the debtor may, within that time,
cause to be served on the creditor a signed statement under penalties of perjury asserting
an entitlement to an exemption from garnishment; (4) inform the debtor of the earnings
garnishment exemptions contained in section 550.37, subdivision 14; deleted text begin and deleted text end (5) advise the
debtor of the relief set forth in this chapter to which the debtor may be entitled if a creditor
in bad faith disregards a valid claim and the fee, costs, and penalty that may be assessed
against a debtor who in bad faith falsely claims an exemption or in bad faith takes action
to frustrate the garnishment process new text begin ; and (6) provide in type that is at least two points larger
than the body of the notice: (i) the date upon which the notice is mailed; (ii) a mailing
address and an email address for delivery of an exemption claim; and (iii) a telephone
number for the creditor's attorney or the creditor new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 83.

Minnesota Statutes 2022, section 571.925, is amended to read:

571.925 FORM OF NOTICE.

The ten-day notice informing a debtor that a garnishment summons may be used to
garnish the earnings of an individual must be substantially in the following form:

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
against
		GARNISHMENT EXEMPTION
. (Debtor)		NOTICE AND NOTICE OF
and		INTENT TO GARNISH EARNINGS
. (Garnishee)

PLEASE TAKE NOTICE that a garnishment summons or levy may be served upon
your employer or other third parties, without any further court proceedings or notice to you,
ten days or more from the date hereof. Some or all of your earnings are exempt from
garnishment. If your earnings are garnished, your employer must show you how the amount
that is garnished from your earnings was calculated. You have the right to request a hearing
if you claim the garnishment is incorrect.

Your earnings are completely exempt from garnishment if you are now a recipient of
assistance based on need, if you have been a recipient of assistance based on need within
the last six months, or if you have been an inmate of a correctional institution in the last six
months.

Assistance based on need includes, but is not limited to:

	MFIP - Minnesota family investment program,
	MFIP Diversionary Work Program,
	Work participation cash benefit,
	GA - general assistance,
	EA - emergency assistance,
	MA - medical assistance, new text begin whether received by you or by your dependent child, new text end
	EGA - emergency general assistance,
	MSA - Minnesota supplemental aid,
	MSA-EA - MSA emergency assistance,
	Supplemental Nutrition Assistance Program (SNAP),
	SSI - Supplemental Security Income,
	MinnesotaCare, new text begin whether received by you or by your dependent child, new text end
	Medicare Part B premium payments,
	Medicare Part D extra help,
	Energy or fuel assistance.

If you wish to claim an exemption, you should fill out the appropriate form below, sign
it, and send it to the creditor's attorney and the garnishee.

You may wish to contact the attorney for the creditor in order to arrange for a settlement
of the debt or contact an attorney to advise you about exemptions or other rights.

PENALTIES

(1) Be advised that even if you claim an exemption, a garnishment summons may still
be served on your employer. If your earnings are garnished after you claim an exemption,
you may petition the court for a determination of your exemption. If the court finds that
the creditor disregarded your claim of exemption in bad faith, you will be entitled to
costs, reasonable attorney fees, actual damages, and an amount not to exceed $100.

(2) HOWEVER, BE WARNED if you claim an exemption, the creditor can also petition
the court for a determination of your exemption, and if the court finds that you claimed
an exemption in bad faith, you will be assessed costs and reasonable attorney's fees plus
an amount not to exceed $100.

(3) If after receipt of this notice, you in bad faith take action to frustrate the garnishment,
thus requiring the creditor to petition the court to resolve the problem, you will be liable
to the creditor for costs and reasonable attorney's fees plus an amount not to exceed
$100.

Dated: .		.
		(Attorney for) Creditor
		.
		Address
		.
		Telephone

DEBTOR'S EXEMPTION CLAIM NOTICE

I hereby claim that my earnings are exempt from garnishment because:

(1) I am presently a recipient of relief based on need. (Specify the program, case number,
and the county from which relief is being received.)

.	.	.
Program	Case Number (if known)	County

(2) I am not now receiving relief based on need, but I have received relief based on need
within the last six months. (Specify the program, case number, and the county from
which relief has been received.)

.	.	.
Program	Case Number (if known)	County

(3) I have been an inmate of a correctional institution within the last six months. (Specify
the correctional institution and location.)

.		.
Correctional Institution		Location

I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above-named creditor or the creditor's
attorney only whether or not I am or have been a recipient of relief based on need or an
inmate of a correctional institution within the last six months. I have mailed or delivered a
copy of this form to the creditor or creditor's attorney.

.		.
Date		Debtor
		.
		Address
		.
		Debtor Telephone Number

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
. (Debtor)
. (Financial institution)

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to notices
provided on or after that date.
new text end

Sec. 84.

Minnesota Statutes 2022, section 571.927, is amended to read:

571.927 PENALTY FOR RETALIATION FOR GARNISHMENT.

Subdivision 1.

Prohibition.

An employer shall not discharge or otherwise discipline an
employee new text begin or independent contractor new text end as a result of an earnings garnishment authorized by
this chapter.

Subd. 2.

Remedy.

If an employer violates this section, a court may order the reinstatement
of an aggrieved party who demonstrates a violation of this section, and other relief the court
considers appropriate. The aggrieved party may bring a civil action within 90 days of the
date of the prohibited action. If an employer-employee new text begin or employer-independent contractor
new text end relationship existed before the violation of this section, the employee new text begin or independent
contractor new text end shall recover twice the deleted text begin wages deleted text end new text begin earnings new text end lost as a result of this violation.

Subd. 3.

Nonwaiver.

The rights guaranteed by this section may not be waived or altered
by deleted text begin employment deleted text end contract.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 85. new text begin GARNISHMENT FORMS REVISION.
new text end

new text begin (a) The attorney general must review and make recommendations to revise into plain
language the notices and forms found in Minnesota Statutes, sections 571.72, subdivisions
8 and 10; 571.74; 571.75, subdivision 2; 571.912; and 571.925.
new text end

new text begin (b) The attorney general must review and determine whether the forms contained in
Minnesota Statutes, sections 571.711, subdivision 11; 571.914; 571.931, subdivision 6; and
571.932, subdivision 2, should be revised into a more easily readable and understandable
format. If the attorney general determines the forms should be revised, the attorney general
must make recommendations for legislative revisions to the forms.
new text end

new text begin (c) The recommendations made under paragraphs (a) and (b) must include proposals to
(1) explain in simple terms the meaning of garnishment in any form that uses the term
garnishment, and (2) prominently place on forms the name, telephone, and email address
of the creditor.
new text end

new text begin (d) When developing the recommendations, the attorney general must consult with the
Center for Plain Language and other plain language experts the attorney general may identify,
and must collaborate with the commissioner of commerce and affected business and consumer
groups, including but not limited to:
new text end

new text begin (1) the Minnesota Creditors' Rights Association;
new text end

new text begin (2) the Great Lakes Credit and Collections Association;
new text end

new text begin (3) the Minnesota Bankers' Association;
new text end

new text begin (4) the Minnesota Credit Union Network;
new text end

new text begin (5) BankIn Minnesota;
new text end

new text begin (6) Mid-Minnesota Legal Aid;
new text end

new text begin (7) the Minnesota chapter of the National Association of Consumer Advocates;
new text end

new text begin (8) the Minnesota chapter of the National Association of Consumer Bankruptcy Attorneys;
new text end

new text begin (9) Lutheran Social Service; and
new text end

new text begin (10) Family Means.
new text end

new text begin (e) For the purposes of this section, "plain language" means communication in which
the wording, structure, and design are so clear that the intended reader can easily: (1) find
what the reader needs; (2) understand what the reader needs; and (3) use what the reader
finds to meet the reader's needs.
new text end

Sec. 86. new text begin RULEMAKING.
new text end

new text begin The commissioner of commerce must amend Minnesota Rules, part 2675.2170, to comply
with the changes made and added in this article to Minnesota Statutes, sections 47.20,
subdivision 2; 47.54, subdivisions 2 and 6; 48.24, subdivision 2; 58.02, subdivisions 15a,
18, and 21; 58.04, subdivisions 1 and 2; 58.05, subdivisions 1 and 3; 58.06, subdivisions
5, 6, and 7; 58.08, subdivisions 1a, 2, and 3; 58.10, subdivision 3; 58.115; 58.13, subdivision
1; and 58.141. The commissioner of commerce may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend the rule under this
section. Minnesota Statutes, section 14.386, does not apply, except as provided under
Minnesota Statutes, section 14.388.
new text end

Sec. 87. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 58.08, subdivision 3, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 332.71, subdivision 8, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective January 1, 2025.
new text end

ARTICLE 3

INSURANCE

Section 1.

Minnesota Statutes 2022, section 45.011, subdivision 1, is amended to read:

Subdivision 1.

Scope.

As used in chapters 45 to 80C, 80E to 83, 155A, 216C, 332, 332A,
332B, 345, and 359, and sections 81A.22 to 81A.37; 123A.21, subdivision 7, paragraph
(a), clause (23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.62 to 386.78;
471.617; deleted text begin and deleted text end 471.982 deleted text begin , deleted text end new text begin ; and 513.80, new text end unless the context indicates otherwise, the terms defined
in this section have the meanings given them.

Sec. 2.

Minnesota Statutes 2022, section 60A.201, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Coverage deemed unavailable. new text end

new text begin Coverage for a risk that was referred to a
surplus lines broker by a Minnesota licensed insurance producer who is not affiliated with
the surplus lines broker is deemed unavailable from a licensed insurer.
new text end

Sec. 3.

new text begin [60A.43] DISABILITY INCOME COVERAGE; DISCLOSURE.
new text end

new text begin (a) No contract or policy of long-term disability insurance that limits the duration of
coverage for mental health or substance use disorders shall be offered in this state without
a disclosure, provided at the time of application, that includes the following:
new text end

new text begin (1) a notification that the long-term disability coverage selected by the potential
policyholder or plan sponsor limits the duration of coverage for mental health or substance
use disorders; and
new text end

new text begin (2) that the potential policyholder or plan sponsor has the right to request more
information about the limitation and other coverage options that include an unlimited
duration, if available.
new text end

new text begin (b) Receipt of the disclosure described in paragraph (a) must be acknowledged by the
potential policyholder or plan sponsor and evidence of the disclosure and acknowledgment
must be retained by the insurance company offering the coverage for a period of no less
than two years.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 61A.031, is amended to read:

61A.031 SUICIDE PROVISIONS.

(a) The deleted text begin sanity or insanity deleted text end new text begin mental competency new text end of a person shall not be a factor in
determining whether a person deleted text begin committed deleted text end new text begin completed new text end suicide within the terms of an individual
or group life insurance policy regulating the payment of benefits in the event of the insured's
suicide. This paragraph shall not be construed to alter present law but is intended to clarify
present law.

(b) A life insurance policy or certificate issued or delivered in this state may exclude or
restrict liability for any death benefit in the event the insured dies as a result of suicide
within one year from the date of the issue of the policy or certificate. Any exclusion or
restriction shall be clearly stated in the policy or certificate. Any life insurance policy or
certificate which contains any exclusion or restriction under this paragraph shall also provide
that in the event any death benefit is denied because the insured dies as a result of suicide
within one year from the date of issue of the policy or certificate, the insurer shall refund
all premiums paid for coverage providing the denied death benefit on the insured.

Sec. 5.

new text begin [62Q.585] GENDER-AFFIRMING CARE COVERAGE; MEDICALLY
NECESSARY CARE.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin No health plan that covers physical or mental health
services may be offered, sold, issued, or renewed in this state that:
new text end

new text begin (1) excludes coverage for medically necessary gender-affirming care; or
new text end

new text begin (2) requires gender-affirming treatments to satisfy a definition of "medically necessary
care," "medical necessity," or any similar term that is more restrictive than the definition
provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Minimum definition. new text end

new text begin "Medically necessary care" means health care services
appropriate in terms of type, frequency, level, setting, and duration to the enrollee's diagnosis
or condition and diagnostic testing and preventive services. Medically necessary care must
be consistent with generally accepted practice parameters as determined by health care
providers in the same or similar general specialty as typically manages the condition,
procedure, or treatment at issue and must:
new text end

new text begin (1) help restore or maintain the enrollee's health; or
new text end

new text begin (2) prevent deterioration of the enrollee's condition.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Gender affirming care" means all medical, surgical, counseling, or referral services,
including telehealth services, that an individual may receive to support and affirm the
individual's gender identity or gender expression and that are legal under the laws of this
state.
new text end

new text begin (c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes
the coverages listed in section 62A.011, subdivision 3, clauses (7) and (10).
new text end

Sec. 6.

Minnesota Statutes 2022, section 65A.29, subdivision 7, is amended to read:

Subd. 7.

Renewal; notice requirement.

new text begin (a) new text end No insurer shall refuse to renew, or reduce
limits of coverage, or eliminate any coverage in a homeowner's insurance policy unless it
mails or delivers to the insured, at the address shown in the policy, at least 60 days' advance
notice of its intention. The notice must contain the specific underwriting or other reason or
reasons for the indicated action and must state the name of the insurer and the date the notice
is issued.

new text begin (b) For purposes of this section and any rules adopted pursuant to subdivision 8,
increasing or revising a homeowner's insurance policy deductible, including but not limited
to obligating a policyholder to pay a percentage of an insured loss as part of the deductible,
is not a refusal to renew, a reduction in coverage limits, or an elimination of coverage. If
an insurer provides a deductible obligating a policyholder to pay a percentage of an insured
loss, the insurer must also provide at least one flat-dollar deductible.
new text end

new text begin (c) new text end Proof of mailing this notice to the insured at the address shown in the policy is
sufficient proof that the notice required by this section has been given.

Sec. 7.

Minnesota Statutes 2022, section 65A.29, subdivision 8, is amended to read:

Subd. 8.

Rules.

(a) The commissioner may adopt rules pursuant to chapter 14, to specify
the grounds for nonrenewal, reduction in limits of coverage, or elimination of coverage of
a homeowner's policy. The rules must limit the grounds to the following factors:

(1) reasons stated for cancellation in section 65A.01, subdivision 3a;

(2) reasons stated in section 72A.20, subdivision 13;

(3) insured's loss experience, deleted text begin not to include deleted text end new text begin including new text end natural causes new text begin , which may include
but are not limited to lightning, rain, wind, and hail new text end ; and

(4) other factors deemed reasonable by the commissioner.

The rules may give consideration to the form and content of the termination notice to
the insured, a statement as to what constitutes receipt of the termination notice, and the
procedure by which the insured may appeal a termination notice.

The rules adopted under this subdivision may provide for imposition of a monetary
penalty not greater than $500 per occurrence upon insurers who are found to be in violation
of the law or the rules.

(b) In addition to any rules adopted under this subdivision, an insured may appeal any
nonrenewal under this section to the commissioner of commerce. If the commissioner finds
that the nonrenewal is unjustified, arbitrary, or capricious, the commissioner shall order the
insurer to reinstate the insured's policy. The commissioner's order may be appealed pursuant
to chapter 14. The insured's policy shall continue in force pending the conclusion of the
appeal to the commissioner. The insurer must notify the insured of the insured's right to
appeal the nonrenewal to the commissioner in the notice of nonrenewal required under
subdivision 7.

Sec. 8.

new text begin [65A.3025] CONDOMINIUM AND TOWNHOUSE POLICIES;
COORDINATION OF BENEFITS FOR LOSS ASSESSMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Assessable loss" means a covered loss under the terms of a policy governed by
subdivision 2, paragraph (a) or (b).
new text end

new text begin (c) "Association" has the meaning given in section 515B.1-103, clause (4).
new text end

new text begin (d) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
new text end

new text begin Subd. 2. new text end

new text begin Loss assessment. new text end

new text begin (a) If a loss assessment is charged by an association to an
individual unit owner, the insurance policy in force at the time of the assessable loss must
pay the loss assessment, subject to the limits provided in the policy, notwithstanding any
policy provisions regarding when loss assessment coverage accrues, and subject to any
other terms, conditions, and exclusions in the policy, if the following conditions are met:
new text end

new text begin (1) the unit owner at the time of the assessable loss is the owner of the property listed
on the policy at the time the loss assessment is charged;
new text end

new text begin (2) the insurance policy in force at the time of the assessable loss provides loss assessment
coverage; and
new text end

new text begin (3) a loss assessment and the event or occurrence which triggers a loss assessment shall
be considered a single loss for underwriting and rating purposes.
new text end

new text begin (b) If a loss assessment is charged by an association to an individual unit owner, the
insurance policy in force at the time the loss assessment is charged must pay the assessment,
subject to the limits provided in the policy, notwithstanding any policy provisions regarding
when loss assessment coverage accrues, and subject to any other terms, conditions, and
exclusions in the policy, if the following conditions are met:
new text end

new text begin (1) the unit owner at the time of the loss assessment is charged is different than the unit
owner at the time of the assessable loss; and
new text end

new text begin (2) the insurance policy in force at the time the loss assessment is charged provides loss
assessment coverage.
new text end

new text begin (c) For a loss assessment under paragraph (b), an insurer may require evidence
documenting that the transfer of ownership occurred prior to the assessment before the
insurer affords coverage.
new text end

Sec. 9.

Minnesota Statutes 2022, section 70A.05, is amended to read:

70A.05 RATING METHODS.

The compliance of rates with the standards of section 70A.04 shall be determined by
considering the following matters:

(1) Factors in rates. Due consideration shall be given to past and prospective loss and
expense experience within and outside this state, to a reasonable provision for catastrophe
hazards and contingencies, to clearly discernible trends within and outside this state, to
dividends or savings allowed or returned by insurers to their policyholders, members or
subscribers, and to all other relevant factors, including the judgment of underwriters and
raters new text begin and, with respect to new text end new text begin property and homeowners insurance, the impact of losses caused
by natural causes, including but not limited to lightning, rain, wind, and hail new text end .

(2) Classification. Risks may be classified by any reasonable method for the
establishment of rates and minimum premiums. Classifications may not be based on race,
color, creed or national origin. Rates thus produced may be modified for individual risks
in accordance with rating plans or schedules which establish standards for measuring probable
variations in hazards, expenses, or both.

(3) Profits. The rates may contain an allowance permitting a profit that is not
unreasonable.

Sec. 10.

Minnesota Statutes 2022, section 72A.20, subdivision 13, is amended to read:

Subd. 13.

Refusal to renew.

Refusing to renew, declining to offer or write, or charging
differential rates for an equivalent amount of homeowner's insurance coverage, as defined
by section 65A.27, for property located in a deleted text begin town or statutory or home rule charter deleted text end city new text begin of
the first class new text end , in which the insurer offers to sell or writes homeowner's insurance, solely
because:

(a) of the geographic area in which the property is located;

(b) of the age of the primary structure sought to be insured;

(c) the insured or prospective insured was denied coverage of the property by another
insurer, whether by cancellation, nonrenewal or declination to offer coverage, for a reason
other than those specified in section 65A.01, subdivision 3a, clauses (a) to (e);

(d) the property of the insured or prospective insured has been insured under the
Minnesota FAIR Plan Act, shall constitute an unfair method of competition and an unfair
and deceptive act or practice; or

(e) the insured has inquired about coverage for a hypothetical claim or has made an
inquiry to the insured's agent regarding a potential claim.

This subdivision prohibits an insurer from filing or charging different rates for different
zip code areas within the same town or statutory or home rule charter city.

This subdivision shall not prohibit the insurer from applying underwriting or rating
standards which the insurer applies generally in all other locations in the state and which
are not specifically prohibited by clauses (a) to (e). Such underwriting or rating standards
shall specifically include but not be limited to standards based upon the proximity of the
insured property to an extraordinary hazard or based upon the quality or availability of fire
protection services or based upon the density or concentration of the insurer's risks. Clause
(b) shall not prohibit the use of rating standards based upon the age of the insured structure's
plumbing, electrical, heating or cooling system or other part of the structure, the age of
which affects the risk of loss. Any insurer's failure to comply with section 65A.29,
subdivisions 2 to 4, either (1) by failing to give an insured or applicant the required notice
or statement or (2) by failing to state specifically a bona fide underwriting or other reason
for the refusal to write shall create a presumption that the insurer has violated this subdivision.

Sec. 11.

Minnesota Statutes 2022, section 325E.66, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Payment or rebate of insurance deductible deleted text end new text begin Residential contractor;
prohibited insurance practices new text end .

new text begin (a) new text end A residential contractor providing home repair or
improvement services to be paid by an insured from the proceeds of a property or casualty
insurance policy shall not deleted text begin , deleted text end new text begin :
new text end

new text begin (1) new text end as an inducement to the sale or provision of goods or services to an insured, advertise
or promise to pay, directly or indirectly, all or part of any applicable insurance deductible
or offer to compensate an insured for providing any service to the insured. new text begin The prohibition
under this clause includes but is not limited to offering compensation in exchange for:
new text end

new text begin (i) allowing the residential contractor to conduct an inspection of the insured's roof;
new text end

new text begin (ii) making an insurance claim for damage to the insured's roof; or
new text end

new text begin (iii) referring the residential contractor's services to others when insurance proceeds are
payable;
new text end

new text begin (2) provide an insured with an agreement authorizing repairs without also providing a
good faith estimate of the itemized and detailed cost of services and materials undertaken
pursuant to a property and casualty claim; or
new text end

new text begin (3) interpret policy provisions or advise an insured regarding coverages or duties under
the insured's policy, or adjust a property insurance claim on behalf of the insured, unless
the contractor has a license as a public adjuster under chapter 72B.
new text end

new text begin (b) new text end If a residential contractor violates this section, the insurer to whom the insured
tendered the claim shall not be obligated to consider the estimate prepared by the residential
contractor. The residential contractor must provide a written notification of the requirements
of this section with its initial estimate. The adjuster or insurer must provide a written
notification of the requirements of this section in the initial estimate relating to the claim.

new text begin (c) new text end For purposes of this section, "residential contractor" means a residential roofer, as
defined in section 326B.802, subdivision 14; a residential building contractor, as defined
in section 326B.802, subdivision 11; and a residential remodeler, as defined in section
326B.802, subdivision 12.

Sec. 12.

new text begin [332.3352] WAIVER OF LICENSING AND REGISTRATION.
new text end

new text begin The commissioner of commerce may, by order, waive the licensing and registration
requirements of this chapter for a nonresident collection agency and the nonresident collection
agency's affiliated collectors if: (1) a written reciprocal licensing agreement is in effect
between the commissioner and the licensing officials of the nonresident collection agency's
home state; and (2) the nonresident collection agency is licensed in good standing in the
nonresident collection agency's home state.
new text end

Sec. 13.

Minnesota Statutes 2022, section 471.6161, subdivision 8, is amended to read:

Subd. 8.

School districts; group health insurance coverage.

(a) Any entity providing
group health insurance coverage to a school district must provide the school district with
school district-specific nonidentifiable aggregate claims records for the most recent 24
months within 30 days of the request.

(b) School districts shall request proposals for group health insurance coverage as
provided in subdivision 2 from a minimum of three potential sources of coverage. One of
these requests must go to an administrator governed by chapter 43A. Entities referenced in
subdivision 1 must respond to requests for proposals received directly from a school district.
School districts that are self-insured must also follow these provisions, except as provided
in paragraph deleted text begin (f) deleted text end new text begin (g) new text end . School districts must make requests for proposals at least 150 days
prior to the expiration of the existing contract but not more frequently than once every 24
months. The request for proposals must include the most recently available 24 months of
nonidentifiable aggregate claims data. The request for proposals must be publicly released
at or prior to its release to potential sources of coverage.

(c) School district contracts for group health insurance must not be longer than two years
unless the exclusive representative of the largest employment group and the school district
agree otherwise.

new text begin (d) All proposals for group health insurance coverage, including coverage offered under
chapters 43A and 123A, must include the information described in this paragraph for each
separate health plan being proposed. The information must be on the first page of each
proposal in a summary section and in a separate tabular format. Proposals that do not include
all of the following information are not eligible to be selected by a school district. All
proposals must include the:
new text end

new text begin (1) structure of the health plan, designating either exclusive provider organization,
preferred provider organization, point of service, or health maintenance organization;
new text end

new text begin (2) health plan actuarial value, using the minimum value calculator described in Code
of Federal Regulations, title 45, section 156.145;
new text end

new text begin (3) type of provider network, designating either narrow network, broad network, narrow
tiered network, or broad tiered network;
new text end

new text begin (4) agent or broker commissions paid as part of the premium, as requested by the proposal,
displayed in dollars per member per month;
new text end

new text begin (5) total premium dollars in the first 12-month period of the quote, not including
commissions;
new text end

new text begin (6) total premium dollars, per member per month, not including commissions; and
new text end

new text begin (7) number of expected members used for the premium quote calculation.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end All initial proposals shall be sealed upon receipt until they are all opened no less
than 90 days prior to the plan's renewal date in the presence of up to three representatives
selected by the exclusive representative of the largest group of employees. Section 13.591,
subdivision 3, paragraph (b), applies to data in the proposals. The representatives of the
exclusive representative must maintain the data according to this classification and are
subject to the remedies and penalties under sections 13.08 and 13.09 for a violation of this
requirement.

deleted text begin (e) deleted text end new text begin (f) new text end A school district, in consultation with the same representatives referenced in
paragraph deleted text begin (d) deleted text end new text begin (e) new text end , may continue to negotiate with any entity that submitted a proposal under
paragraph deleted text begin (d) deleted text end new text begin (e) new text end in order to reduce costs or improve services under the proposal. Following
the negotiations any entity that submitted an initial proposal may submit a final proposal
incorporating the negotiations, which is due no less than 75 days prior to the plan's renewal
date. All the final proposals submitted must be opened at the same time in the presence of
up to three representatives selected by the exclusive representative of the largest group of
employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), following the
opening of the final proposals, all the proposals, including any made under paragraph deleted text begin (d) deleted text end new text begin
(e) new text end , and other data submitted in connection with the proposals are public data. The school
district may choose from any of the initial or final proposals without further negotiations
and in accordance with subdivision 5, but not sooner than 15 days after the proposals become
public data.

deleted text begin (f) deleted text end new text begin (g) new text end School districts that are self-insured shall follow all of the requirements of this
section, except that:

(1) their requests for proposals may be for third-party administrator services, where
applicable;

(2) these requests for proposals must be from a minimum of three different sources,
which may include both entities referenced in subdivision 1 and providers of third-party
administrator services;

(3) for purposes of fulfilling the requirement to request a proposal for group insurance
coverage from an administrator governed by chapter 43A, self-insured districts are not
required to include in the request for proposal the coverage to be provided;

(4) a district that is self-insured on or before the date of enactment, or that is self-insured
with more than 1,000 insured lives, or a district in which the school board adopted a motion
on or before May 14, 2014, to approve a self-insured health care plan to be effective July
1, 2014, may, but need not, request a proposal from an administrator governed by chapter
43A;

(5) requests for proposals must be sent to providers no less than 90 days prior to the
expiration of the existing contract; and

(6) proposals must be submitted at least 60 days prior to the plan's renewal date and all
proposals shall be opened at the same time and in the presence of the exclusive representative,
where applicable.

deleted text begin (g) deleted text end new text begin (h) new text end Nothing in this section shall restrict the authority granted to school district boards
of education by section 471.59, except that districts will not be considered self-insured for
purposes of this subdivision solely through participation in a joint powers arrangement.

deleted text begin (h) deleted text end new text begin (i) new text end An entity providing group health insurance to a school district under a multiyear
contract must give notice of any rate or plan design changes applicable under the contract
at least 90 days before the effective date of any change. The notice must be given to the
school district and to the exclusive representatives of employees.

Sec. 14.

Minnesota Statutes 2022, section 471.617, subdivision 2, is amended to read:

Subd. 2.

Jointly.

Any two or more statutory or home rule charter cities, counties, school
districts, or instrumentalities thereof which together have more than 100 employees may
jointly self-insure for any employee health benefits including long-term disability, but not
for employee life benefits, subject to the same requirements as an individual self-insurer
under subdivision 1. Self-insurance pools under this section are subject to section 62L.045.
A self-insurance pool established and operated by one or more service cooperatives governed
by section 123A.21 to provide coverage described in this subdivision qualifies under this
subdivision, but the individual school district members of such a pool shall not be considered
to be self-insured for purposes of section 471.6161, subdivision 8, paragraph deleted text begin (f) deleted text end new text begin (g) new text end . The
commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or
guidelines for the operation and administration of self-insurance pools.

Sec. 15.

new text begin [513.80] RESIDENTIAL REAL ESTATE SERVICE AGREEMENTS;
UNFAIR SERVICE AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "County recorder" has the meaning given in section 13.045, subdivision 1.
new text end

new text begin (c) "Person" means natural persons, corporations both foreign and domestic, trusts,
partnerships both limited and general, incorporated or unincorporated associations,
companies, business entities, and any other legal entity or any other group associated in fact
although not a legal entity or any agent, assignee, heir, employee, representative, or servant
thereof.
new text end

new text begin (d) "Record" or "recording" means placement of a document or instrument in the official
county public land records.
new text end

new text begin (e) "Residential real property" means real property that is located in Minnesota and
occupied, or intended to be occupied, by one to four families as the family's or families'
residence.
new text end

new text begin (f) "Service agreement" means a contract under which a person agrees to provide real
estate broker services, as defined in section 82.55, subdivision 19, in connection with the
purchase or sale of residential real property.
new text end

new text begin (g) "Service provider" means an individual or entity that provides services to a person
pursuant to a service agreement.
new text end

new text begin Subd. 2. new text end

new text begin Unfair service agreements; prohibition. new text end

new text begin (a) A service agreement subject to
this section is unfair and prohibited if any part of the agreement provides an exclusive right
to a service provider for a term in excess of one year after the time the service agreement
is entered into and:
new text end

new text begin (1) purports to run with the land or to be binding on future owners of interests in the real
property;
new text end

new text begin (2) allows for assignment of the right to provide service without notice to and the consent
of the residential real property's owner, including a contract for deed vendee;
new text end

new text begin (3) is recorded or purports to create a lien, encumbrance, or other real property security
interest; or
new text end

new text begin (4) contains a provision that purports to automatically renew the agreement upon the
agreement's expiration.
new text end

new text begin (b) The following are not unfair service agreements under this section:
new text end

new text begin (1) a home warranty or similar product that covers the cost of maintaining a major home
system or appliance for a fixed period;
new text end

new text begin (2) an insurance contract;
new text end

new text begin (3) a mortgage loan or a commitment to make or receive a mortgage loan;
new text end

new text begin (4) an option or right of refusal to purchase a residential real property;
new text end

new text begin (5) a declaration of any covenants, conditions, or restrictions created in the formation
of a homeowners association, a group of condominium owners, or other common interest
community or an amendment to the covenants, conditions, or restrictions;
new text end

new text begin (6) a maintenance or service agreement entered by a homeowners association in a
common interest community;
new text end

new text begin (7) a security agreement governed by chapter 336 that relates to the sale or rental of
personal property or fixtures; or
new text end

new text begin (8) a contract with a gas, water, sewer, electric, telephone, cable, or other utility service
provider.
new text end

new text begin (c) This section does not impair any lien right granted under Minnesota law or that is
judicially imposed.
new text end

new text begin Subd. 3. new text end

new text begin Recording prohibited. new text end

new text begin (a) A person is prohibited from:
new text end

new text begin (1) presenting or sending an unfair service agreement or notice or memorandum of an
unfair service agreement to any county recorder to record; or
new text end

new text begin (2) causing an unfair service agreement or notice or memorandum of an unfair service
agreement to be recorded by a county recorder.
new text end

new text begin (b) If a county recorder records an unfair service agreement, the county recorder does
not incur liability.
new text end

new text begin (c) If an unfair service agreement is recorded, the recording does not create a lien or
provide constructive notice to any third party, bona fide purchaser, or creditor.
new text end

new text begin Subd. 4. new text end

new text begin Unfair service agreements unenforceable. new text end

new text begin A service agreement that is unfair
under this section is unenforceable and does not create a contractual obligation or relationship.
Any waiver of a consumer right, including a right to trial by jury, in an unfair service
agreement is void.
new text end

new text begin Subd. 5. new text end

new text begin Unfair service agreements; solicitation. new text end

new text begin Encouraging any consumer to enter
into an unfair service agreement by any service provider constitutes:
new text end

new text begin (1) an unfair method of competition; and
new text end

new text begin (2) an unfair or deceptive act or practice under section 82.81, subdivision 12, paragraph
(c), and section 325F.69.
new text end

Sec. 16.

Minnesota Statutes 2022, section 604.18, subdivision 1, is amended to read:

Subdivision 1.

Terms.

For purposes of this section, the following terms have the
meanings given them.

(a) "Insurance policy" means a written agreement between an insured and an insurer
that obligates an insurer to pay proceeds directly to an insured. Insurance policy does not
include provisions of a written agreement obligating an insurer to defend an insured,
reimburse an insured's defense expenses, provide for any other type of defense obligation,
or provide indemnification for judgments or settlements. Insurance policy does not include:

(1) coverage for workers' compensation insurance under chapter 176;

(2) a written agreement of a health carrier, as defined in section 62A.011 new text begin , with the
exception of coverage that is limited to disability or income protection or a long-term care
policy or insurance, as defined under sections 62A.46, subdivision 2, and 62S.01, subdivision
18 new text end ;

(3) a contract issued by a nonprofit health service plan corporation regulated under
chapter 62C that provides only dental coverage;

(4) a written agreement authorized under section 60A.06, subdivision 1, clause (4) or
(6), or 64B.16, subdivision 1; or

(5) a written agreement issued pursuant to section 67A.191.

(b) "Insured" means a person who, or an entity which, qualifies as an insured under the
terms of an insurance policy on which a claim for coverage is made. An insured does not
include any person or entity claiming a third-party beneficiary status under an insurance
policy.

(c) "Insurer" means every insurer, corporation, business trust, or association engaged in
insurance as a principal licensed or authorized to transact insurance under section 60A.06,
but for purposes of this section an insurer does not include a political subdivision providing
self-insurance or a pool of political subdivisions under section 471.981, subdivision 3. The
term does not include the Joint Underwriting Association operating under chapter 62F or
62I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to claims made or commenced under this section on or after that date.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 332.3351, new text end new text begin is repealed.
new text end

ARTICLE 4

TELECOMMUNICATIONS POLICY

Section 1.

Minnesota Statutes 2022, section 116J.39, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Broadband" or "broadband service" means deleted text begin any deleted text end new text begin a new text end service deleted text begin providing advanced
telecommunications capability and deleted text end new text begin that offers to a person or company new text end new text begin high-speed new text end Internet
access with transmission speeds that, at a minimum, meet the Federal Communications
Commission definition for broadband.

(c) "Local unit of government" has the meaning given in section 116G.03, subdivision
3.

(d) "Office" means the Office of Broadband Development established in subdivision 2,
paragraph (a).

Sec. 2.

Minnesota Statutes 2022, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to deleted text begin 116J.398 deleted text end new text begin 116J.399 new text end , the following terms
have the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) "Broadband infrastructure" means networks of deployed deleted text begin telecommunications deleted text end
equipment and technologies necessary to provide deleted text begin high-speed Internet access and other
advanced telecommunications services for deleted text end new text begin broadband to new text end end users.

(d) "Commissioner" means the commissioner of employment and economic development.

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg
connecting the broadband service provider's network to the end-use customer's on-premises
telecommunications equipment.

(f) "Middle-mile infrastructure" means broadband infrastructure that links a broadband
service provider's core network infrastructure to last-mile infrastructure.

(g) "Political subdivision" means any county, city, town, school district, special district
or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds of at least 100 megabits per second
download and at least 20 megabits per second upload.

(i) "Unserved areas" means areas of Minnesota in which households or businesses lack
access to wire-line broadband service, as defined in section 116J.39.

Sec. 3.

Minnesota Statutes 2022, section 116J.399, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the following terms have
the meanings given:

deleted text begin (1) "broadband infrastructure" has the meaning given in section 116J.394, paragraph
(c);
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end "broadband service" has the meaning given in section deleted text begin 116J.394, paragraph (b) deleted text end new text begin
116J.39, subdivision 1, paragraph (b) new text end ; deleted text begin and
deleted text end

new text begin (2) "local franchising authority" means any statutory city, home rule charter city, or
town authorized by state law to require a provider to obtain a franchise; and
new text end

(3) "provider" means a broadband service provider, but does not include an electric
cooperative association organized under chapter 308A deleted text begin that provides broadband service. deleted text end new text begin ; a
provider that exclusively offers personal wireless service, as defined in United States Code,
title 47, section 332(c)(7)(C); or a provider that exclusively offers direct broadband satellite
service, as defined in United States Code, title 47, section 335(b)(5).
new text end

Sec. 4.

Minnesota Statutes 2022, section 116J.399, subdivision 8, is amended to read:

Subd. 8.

Local governmental right-of-way management preserved.

new text begin (a) new text end The placement
of broadband infrastructure to provide broadband service under subdivisions 2 to 7 new text begin : (1) new text end is
subject to local government deleted text begin permitting and right-of-way management authority under section
237.163, deleted text end new text begin franchising or other municipal authorization under subdivision 10; new text end and new text begin (2) new text end must
be coordinated with the relevant local government unit in order to minimize potential future
relocations. The provider must notify a local government unit prior to placing infrastructure
for broadband service in an easement that is in or adjacent to the local government unit's
public right-of-way.

new text begin (b) Nothing in this section applies to a public utility easement.
new text end

Sec. 5.

Minnesota Statutes 2022, section 116J.399, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Franchise or municipal authorization. new text end

new text begin (a) A local franchising authority may
require a provider furnishing broadband within the local franchising authority's jurisdiction
to obtain a franchise or other municipal authorization in accordance with the terms,
conditions, and limitations of the local franchising authority's regulatory acts, including but
not limited to regulatory acts governing the placing of lines and facilities above ground or
underground.
new text end

new text begin (b) A local franchising authority may by ordinance or resolution create a joint powers
commission under section 471.59 to which each local franchising authority may delegate
authority vested in that entity by statute or charter to prepare, adopt, grant, administer, and
enforce a franchise as contemplated hereunder.
new text end

new text begin (c) Pursuant to a franchise or other municipal authorization required under paragraph
(a), a local franchising authority may require a provider to pay the local franchising authority
fees to (1) raise revenue, (2) defray increased municipal costs that accrue as a result of
right-of-way occupation, or (3) both. The fee may include but is not limited to a sum of
money based on the gross operating revenues or gross earnings resulting from the provider's
operations to provide broadband within the local franchising authority's jurisdiction for the
duration of time the provider continues to operate within the local franchising authority's
jurisdiction. A provider franchise fee must not exceed five percent of the provider's gross
revenues and up to an additional three percent of the provider's gross revenues dedicated
in support of local programming if the local franchising authority or local franchising
authority's designee operates an access channel. Any franchise fee inconsistent with the
express terms of title VI of the Communications Act, United States Code, title 47, section
521, et seq., is prohibited.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 222.37, subdivision 1, is amended
to read:

Subdivision 1.

Use requirements.

new text begin (a) new text end Any water power, telegraph, telephone, new text begin broadband, new text end
pneumatic tube, pipeline, community antenna television, cable communications or electric
light, heat, power company, entity that receives a route permit under chapter 216E for a
high-voltage transmission line necessary to interconnect an electric power generating facility
with transmission lines or associated facilities of an entity that directly, or through its
members or agents, provides retail electric service in the state, or fire department may use
public roads for the purpose of constructing, using, operating, and maintaining lines, subways,
canals, conduits, transmission lines, hydrants, or dry hydrants, for their business, but such
lines shall be so located as in no way to interfere with the safety and convenience of ordinary
travel along or over the same; and, in the construction and maintenance of such line, subway,
canal, conduit, transmission lines, hydrants, or dry hydrants, the entity deleted text begin shall be deleted text end new text begin is new text end subject
to new text begin municipal franchising requirements, including compensation, as well as new text end all reasonable
regulations imposed by the governing body of any county, town or city in which such public
road may be.

new text begin (b) new text end If the governing body does not require the entity to obtain a new text begin franchise or new text end permit, an
entity shall notify the governing body of any county, town, or city having jurisdiction over
a public road prior to the construction or major repair, involving extensive excavation on
the road right-of-way, of the entity's equipment along, over, or under the public road, unless
the governing body waives the notice requirement. A waiver of the notice requirement must
be renewed on an annual basis.

new text begin (c) new text end For emergency repair an entity shall notify the governing body as soon as practical
after the repair is made.

new text begin (d) new text end Nothing herein shall be construed to grant to any person any rights deleted text begin for the maintenance
of deleted text end new text begin to construct and maintain new text end a deleted text begin telegraph, telephone, pneumatic tube, community antenna
television system, deleted text end new text begin system or network that provides telecommunications, broadband, new text end cable
communications deleted text begin system deleted text end , deleted text begin or light, heat, power system, electric power generating system,
high-voltage transmission line, or deleted text end hydrant deleted text begin system deleted text end new text begin , gas, electric, or other utility service new text end within
the corporate limits of any city until deleted text begin such deleted text end new text begin the new text end person deleted text begin shall have deleted text end new text begin has new text end obtained new text begin a franchise or
other municipal authorization that grants new text end the right to new text begin construct and new text end maintain deleted text begin such deleted text end new text begin the new text end system
within deleted text begin such deleted text end new text begin the new text end city or for a period beyond that for which the right to operate deleted text begin such deleted text end new text begin the new text end system
is granted by deleted text begin such deleted text end new text begin the new text end city. new text begin Authority granted under this paragraph must be granted before
the person provides the service. A company that provides multiple services to the public
must obtain a franchise or specific municipal authorization to provide each service.
new text end

Sec. 7.

Minnesota Statutes 2022, section 237.121, is amended to read:

237.121 PROHIBITED PRACTICES.

(a) A telephone company or telecommunications carrier may not do any of the following
with respect to services regulated by the commission:

(1) upon request, fail to disclose in a timely and uniform manner information necessary
for the design of equipment and services that will meet the specifications for interconnection;

(2) intentionally impair the speed, quality, or efficiency of services, products, or facilities
offered to a consumer under a tariff, contract, or price list;

(3) fail to provide a service, product, or facility to a consumer other than a telephone
company or telecommunications carrier in accordance with its applicable tariffs, price lists,
or contracts and with the commission's rules and orders;

(4) refuse to provide a service, product, or facility to a telephone company or
telecommunications carrier in accordance with its applicable tariffs, price lists, or contracts
and with the commission's rules and orders;

(5) impose unreasonable or discriminatory restrictions on the resale of its services,
provided that:

(i) it may require that residential service may not be resold as a different class of service;
and

(ii) the commission may prohibit resale of services it has approved for provision for
not-for-profit entities at rates less than those offered to the general public; deleted text begin or
deleted text end

(6) provide telephone service to a person acting as a telephone company or
telecommunications carrier if the commission has ordered the telephone company or
telecommunications carrier to discontinue service to that person deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) upon cancellation of a service, refuse to provide a prorated refund of payment made
in advance by a customer.
new text end

(b) A telephone company or telecommunications carrier may not violate a provision of
sections 325F.692 and 325F.693, with regard to any of the services provided by the company
or carrier.

Sec. 8.

Minnesota Statutes 2022, section 237.162, subdivision 4, is amended to read:

Subd. 4.

Telecommunications right-of-way user.

(a) "Telecommunications right-of-way
user" means a person owning or controlling a facility in the public right-of-way, or seeking
to own or control a facility in the public right-of-way, that is used or is intended to be used
for providing wireless service, or transporting telecommunications or other voice deleted text begin or data
information deleted text end new text begin service new text end .

new text begin (b) For purposes of this section and section 237.163, telecommunications service does
not include: (1) cable service, as defined under United States Code, title 47, section 522(6);
or (2) broadband service, as defined under section 116J.39, subdivision 1.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A cable communication system defined and regulated under chapter 238, deleted text begin and deleted text end new text begin an
entity that solely provides broadband services, as defined under section 116.39, subdivision
1, new text end telecommunications activities related to providing natural gas or electric energy services,
a public utility as defined in section 216B.02, a municipality, a municipal gas or power
agency organized under chapter 453 or 453A, or a cooperative electric association organized
under chapter 308A deleted text begin , deleted text end are not telecommunications right-of-way users for the purposes of this
section and section 237.163 deleted text begin , except to the extent these entities are offering wireless services deleted text end .

Sec. 9.

Minnesota Statutes 2022, section 237.163, subdivision 2, is amended to read:

Subd. 2.

Generally.

(a) Subject to this section, a telecommunications right-of-way user
authorized to do business under the laws of this state or by license of the Federal
Communications Commission may construct, maintain, and operate small wireless facilities,
conduit, cable, switches, and related appurtenances and facilities along, across, upon, above,
and under any public right-of-way.

(b) Subject to this section, a local government unit has the authority to new text begin franchise and new text end
manage its public rights-of-way new text begin , receive compensation for use and occupancy, new text end and deleted text begin to deleted text end recover
its rights-of-way management costs. Except as provided in subdivisions 3a, 3b, and 3c, the
authority defined in this section may be exercised at the option of the local government unit
and is not mandated under this section. A local government unit may, by ordinance:

(1) require a telecommunications right-of-way user seeking to excavate or obstruct a
public right-of-way for the purpose of providing telecommunications services to obtain a
right-of-way permit to do so and to impose permit conditions consistent with the local
government unit's management of the right-of-way;

(2) require a telecommunications right-of-way user using, occupying, or seeking to use
or occupy a public right-of-way for the purpose of providing telecommunications services
to register with the local government unit by providing the local government unit with the
following information:

(i) the applicant's name, gopher state one-call registration number under section 216D.03,
address, and telephone and facsimile numbers;

(ii) the name, address, and telephone and facsimile numbers of the applicant's local
representative;

(iii) proof of adequate insurance; and

(iv) other information deemed reasonably necessary by the local government unit for
the efficient administration of the public right-of-way; and

(3) require telecommunications right-of-way users to submit to the local government
unit plans for construction and major maintenance that provide reasonable notice to the
local government unit of projects that the telecommunications right-of-way user expects to
undertake that may require excavation and obstruction of public rights-of-way.

(c) A local government unit may also require a telecommunications right-of-way user
that is registered with the local government unit pursuant to paragraph (b), clause (2), to
periodically update the information in its registration application.

(d) Notwithstanding sections 394.34 and 462.355, or any other law, a local government
unit must not establish a moratorium with respect to:

(1) filing, receiving, or processing applications for right-of-way or small wireless facility
permits; or

(2) issuing or approving right-of-way or small wireless facility permits.

(e) A telecommunications right-of-way user may place a new wireless support structure
or collocate small wireless facilities on wireless support structures located within a public
right-of-way, subject to the approval procedures under this section and, for collocation on
wireless support structures owned by a local government unit, the reasonable terms,
conditions, and rates set forth under this section. A local government unit may prohibit,
regulate, or charge a fee to install wireless support structures or to collocate small wireless
facilities only as provided in this section.

(f) The placement of small wireless facilities and wireless support structures to
accommodate small wireless facilities are a permitted use in a public right-of-way, except
that a local government unit may require a person to obtain a special or conditional land
use permit to install a new wireless support structure for the siting of a small wireless facility
in a right-of-way in a district or area zoned for single-family residential use or within a
historic district established by federal or state law or city ordinance as of the date of
application for a small wireless facility permit. This paragraph does not apply to areas
outside a public right-of-way that are zoned and used exclusively for single-family residential
use.

Sec. 10.

Minnesota Statutes 2022, section 237.163, subdivision 6, is amended to read:

Subd. 6.

Fees.

(a) new text begin In addition to franchise fees authorized under section 116J.399,
subdivision 10, new text end a local government unit may recover its right-of-way management costs by
imposing a fee for registration, a fee for each right-of-way or small wireless facility permit,
or, when appropriate, a fee applicable to a particular telecommunications right-of-way user
when that user causes the local government unit to incur costs as a result of actions or
inactions of that user. A local government unit may not recover costs from a
telecommunications right-of-way user or an owner of a cable communications system
awarded a franchise under chapter 238 caused by another entity's activity in the right-of-way.

(b) Fees, or other right-of-way obligations, imposed by a local government unit on
telecommunications right-of-way users under this section new text begin to recover right-of-way
management costs new text end must be:

(1) based on the actual costs incurred by the local government unit in managing the
public right-of-way;

(2) based on an allocation among all users of the public right-of-way, including the local
government unit itself, which shall reflect the proportionate costs imposed on the local
government unit by each of the various types of uses of the public rights-of-way;

(3) imposed on a competitively neutral basis; and

(4) imposed in a manner so that aboveground uses of public rights-of-way do not bear
costs incurred by the local government unit to regulate underground uses of public
rights-of-way.

(c) The rights, duties, and obligations regarding the use of the public right-of-way
imposed under this section must be applied to all users of the public right-of-way, including
the local government unit while recognizing regulation must reflect the distinct engineering,
construction, operation, maintenance and public and worker safety requirements, and
standards applicable to various users of the public rights-of-way. For users subject to the
franchising authority of a local government unit, to the extent those rights, duties, and
obligations are addressed in the terms of an applicable franchise agreement, the terms of
the franchise shall prevail over any conflicting provision in an ordinance.

(d) A wireless service provider may collocate small wireless facilities on wireless support
structures owned or controlled by a local government unit and located within the public
roads or rights-of-way without being required to apply for or enter into any individual
license, franchise, or other agreement with the local government unit or any other entity,
other than a standard small wireless facility collocation agreement under subdivision 3a,
paragraph (f), if the local unit of government elects to utilize such an agreement.

(e) Any initial engineering survey and preparatory construction work associated with
collocation must be paid by the cost causer in the form of a onetime, nonrecurring,
commercially reasonable, nondiscriminatory, and competitively neutral charge to recover
the costs associated with a proposed attachment.

(f) Total application fees for a small wireless facility permit must comply with this
subdivision with respect to costs related to the permit.

(g) A local government unit may elect to charge each small wireless facility attached to
a wireless support structure owned by the local government unit a fee, in addition to other
fees or charges allowed under this subdivision, consisting of:

(1) up to $150 per year for rent to occupy space on a wireless support structure;

(2) up to $25 per year for maintenance associated with the space occupied on a wireless
support structure; and

(3) a monthly fee for electricity used to operate a small wireless facility, if not purchased
directly from a utility, at the rate of:

(i) $73 per radio node less than or equal to 100 max watts;

(ii) $182 per radio node over 100 max watts; or

(iii) the actual costs of electricity, if the actual costs exceed the amount in item (i) or
(ii).

Sec. 11.

Minnesota Statutes 2022, section 237.163, subdivision 7, is amended to read:

Subd. 7.

Additional right-of-way provisions.

(a) In managing the public rights-of-way
and in imposing fees under this section, no local deleted text begin government unit deleted text end new text begin franchising authority new text end may:

(1) unlawfully discriminate among telecommunications right-of-way users;

(2) grant a preference to any telecommunications right-of-way user; new text begin or
new text end

(3) create or erect any unreasonable requirement for entry to the public rights-of-way
by telecommunications right-of-way users deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (4) require a telecommunications right-of-way user to obtain a franchise or pay for the
use of the right-of-way.
deleted text end

(b) A telecommunications right-of-way user need not apply for or obtain right-of-way
permits for facilities that are located in public rights-of-way on May 10, 1997, for which
the user has obtained the required consent of the local government unit, or that are otherwise
lawfully occupying the public right-of-way. However, the telecommunications right-of-way
user may be required to new text begin : (1) comply with all requirements imposed as allowed under this
section; and (2) new text end register and to obtain a right-of-way permit for an excavation or obstruction
of existing facilities within the public right-of-way after May 10, 1997.

(c) Data and documents exchanged between a local government unit and a
telecommunications right-of-way user are subject to the terms of chapter 13. A local
government unit not complying with this paragraph is subject to the penalties set forth in
section 13.08.

deleted text begin (d) A local government unit may not collect a fee imposed under this section through
the provision of in-kind services by a telecommunications right-of-way user, nor may a
local government unit require the provision of in-kind services as a condition of consent to
use the local government unit's public right-of-way or to obtain a small wireless facility
permit.
deleted text end

deleted text begin (e) Except as provided in this chapter or required by federal law, a local government
unit shall not adopt or enforce any regulation on the placement or operation of
communications facilities in the right-of-way where the entity is already authorized to
operate in the right-of-way, and shall not regulate or impose or collect fees on
communications services except to the extent specifically provided for in the existing
authorization, and unless expressly required by state or federal statute.
deleted text end

Sec. 12.

new text begin [237.185] MISSED REPAIR APPOINTMENTS; CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit required; limitation; exception. new text end

new text begin (a) A local exchange carrier
that schedules a repair appointment with a customer for any service, either to provide the
service directly or by contracting with a third party, must provide an immediate $25 credit
to the customer if a repair technician fails to appear at the scheduled appointment time and
at the location where the repair is required. A customer is not required to request the
immediate credit.
new text end

new text begin (b) The immediate credit under paragraph (a) applies only if the customer, prior to the
scheduled repair appointment, provides notice to the local exchange carrier that the customer's
compromised health requires continued access to emergency services. The customer is not
required to provide the local exchange carrier with medical documentation when providing
notice under this paragraph.
new text end

new text begin (c) The local exchange carrier is not required to provide an immediate credit if the local
exchange carrier (1) notifies the customer that a change in scheduling is necessary, and (2)
provides the notice to the customer at least 24 hours before the scheduled appointment.
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) A local exchange carrier must notify the local exchange carrier's
customers (1) of the right to an immediate credit for a missed repair appointment, and (2)
that a health notice from the customer must be on file in order for the customer to obtain
the immediate credit.
new text end

new text begin (b) The notice must be given to a new customer within 45 days of the date that service
to the customer is commenced and at least annually thereafter. The notice must be provided
in a writing labeled "NOTICE OF RIGHT TO IMMEDIATE CREDIT FOR MISSED
REPAIR APPOINTMENTS FOR CERTAIN HEALTH COMPROMISED CUSTOMERS."
The notification must be printed in a sufficient size so that the notification is clearly legible.
new text end

Sec. 13.

Minnesota Statutes 2022, section 237.19, is amended to read:

237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.

Any municipality shall have the right to own and operate a telephone exchange within
its own borders, subject to the provisions of this chapter. It may construct such plant, or
purchase an existing plant by agreement with the owner, or where it cannot agree with the
owner on price, it may acquire an existing plant by condemnation deleted text begin , as hereinafter provided,
but in no case shall a municipality construct or purchase such a plant or proceed to acquire
an existing plant by condemnation until such action by it is authorized by a majority of the
electors voting upon the proposition at a general election or a special election called for that
purpose, and if the proposal is to construct a new exchange where an exchange already
exists, it shall not be authorized to do so unless 65 percent of those voting thereon vote in
favor of the undertaking deleted text end . A municipality that owns and operates a telephone exchange may
enter into a joint venture as a partner or shareholder with a telecommunications organization
to provide telecommunications services within its service area.

Sec. 14.

new text begin [325F.6945] INTERNET SERVICE PROVIDERS; PROHIBITED ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Broadband Internet access service" means:
new text end

new text begin (1) a mass-market retail service by wire or radio that provides the capability, including
any capability that is incidental to and enables the operation of the communications service,
to transmit data to and receive data from all or substantially all Internet endpoints;
new text end

new text begin (2) any service that provides a functional equivalent of the service described in clause
(1); or
new text end

new text begin (3) any service that is used to evade the protections established under this section.
new text end

new text begin Broadband Internet access service includes a service that serves end users at fixed endpoints
using stationary equipment or end users using mobile stations, but does not include dial-up
Internet access service.
new text end

new text begin (c) "Edge provider" means any person or entity that provides:
new text end

new text begin (1) any content, application, or service over the Internet; or
new text end

new text begin (2) a device used to access any content, application, or service over the Internet.
new text end

new text begin Edge provider does not include a person or entity providing obscene material, as defined
in section 617.241.
new text end

new text begin (d) "Impairing or degrading lawful Internet traffic on the basis of Internet content,
application, or service, or use of a nonharmful device" means impairing or degrading any
of the following:
new text end

new text begin (1) particular content, applications, or services;
new text end

new text begin (2) particular classes of content, applications, or services;
new text end

new text begin (3) lawful Internet traffic to particular nonharmful devices; or
new text end

new text begin (4) lawful Internet traffic to particular classes of nonharmful devices.
new text end

new text begin Impairing or degrading lawful Internet traffic on the basis of Internet content, application,
or service, or use of a nonharmful device includes, without limitation, differentiating
positively or negatively between any of the following:
new text end

new text begin (i) particular content, applications, or services;
new text end

new text begin (ii) particular classes of content, applications, or services;
new text end

new text begin (iii) lawful Internet traffic to particular nonharmful devices; or
new text end

new text begin (iv) lawful Internet traffic to particular classes of nonharmful devices.
new text end

new text begin (e) "Internet service provider" means a business that provides broadband Internet access
service to a customer in Minnesota.
new text end

new text begin (f) "Paid prioritization" means the management of an Internet service provider's network
to directly or indirectly favor some traffic over other traffic:
new text end

new text begin (1) in exchange for monetary or other consideration from a third party; or
new text end

new text begin (2) to benefit an affiliated entity.
new text end

new text begin (g) "Reasonable network management" means a network management practice that has
a primarily technical network-management justification, but does not include other business
practices, which is reasonable if the practice is primarily used for and tailored to achieving
a legitimate network-management purpose, taking into account the particular network
architecture and technology of the broadband Internet access service, and is as
application-agnostic as possible.
new text end

new text begin (h) "Zero-rating" means exempting some Internet traffic from a customer's data usage
allowance.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited actions. new text end

new text begin An Internet service provider is prohibited from engaging
in any of the following activities with respect to any of the Internet service provider's
Minnesota customers:
new text end

new text begin (1) subject to reasonable network management, blocking lawful content, applications,
services, or nonharmful devices;
new text end

new text begin (2) subject to reasonable network management, impairing, impeding, or degrading lawful
Internet traffic on the basis of (i) Internet content, application, or service, or (ii) use of a
nonharmful device;
new text end

new text begin (3) engaging in paid prioritization;
new text end

new text begin (4) unreasonably interfering with or unreasonably disadvantaging:
new text end

new text begin (i) a customer's ability to select, access, and use broadband Internet service or lawful
Internet content, applications, services, or devices of the customer's choice; or
new text end

new text begin (ii) an edge provider's ability to provide lawful Internet content, applications, services,
or devices to a customer;
new text end

new text begin (5) engaging in deceptive or misleading marketing practices that misrepresent the
treatment of Internet traffic or content;
new text end

new text begin (6) engaging in zero-rating in exchange for consideration, monetary or otherwise, from
a third party; or
new text end

new text begin (7) zero-rating some Internet content, applications, services, or devices in a category of
Internet content, applications, services, or devices, but not the entire category.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin This section does not apply to software or applications sponsored
by the federal government, a state government, or a federally recognized Tribal government
when the Internet service provider allows an advantage to customers for free or improved
access, or data for access to government services and programs.
new text end

new text begin Subd. 4. new text end

new text begin Other laws. new text end

new text begin This section does not: (1) supersede any obligation or authorization
an Internet service provider may have to address the needs of emergency communications
or law enforcement, public safety, or national security authorities, consistent with or as
permitted by applicable law; or (2) limit the provider's ability to meet, address, or comply
with the needs identified in clause (1).
new text end

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin A violation of subdivision 2 may be enforced by the commissioner
of commerce under section 45.027. The venue for enforcement proceedings is Ramsey
County.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 15.

Minnesota Statutes 2022, section 412.221, subdivision 6, is amended to read:

Subd. 6.

Public ways and grounds.

new text begin (a) new text end The council deleted text begin shall have deleted text end new text begin has the new text end power to lay out,
open, change, widen or extend streets, alleys, parks, squares, and other public ways and
grounds and to grade, pave, repair, control, and maintain the same; to establish and maintain
drains, canals, and sewers; to alter, widen or straighten watercourses; to lay, repair, or
otherwise improve or discontinue sidewalks, paths, and crosswalks.

deleted text begin It shall have deleted text end new text begin (b) The council has the new text end power new text begin : (1) to franchise the occupants and users of
public right-of-way; (2) to receive compensation; and (3) new text end by ordinance to regulate the use
of streets and other public grounds new text begin to the extent provided in other applicable law new text end , to prevent
encumbrances or obstructions, and to require the owners or occupants of buildings and the
owners of vacant lots to remove any snow, ice, dirt, or rubbish from the sidewalks adjacent
thereto and in default thereof to cause such encumbrances, obstructions, or substances to
be removed and the cost to be assessed against the property as a special assessment.

Sec. 16.

Minnesota Statutes 2022, section 429.021, subdivision 1, is amended to read:

Subdivision 1.

Improvements authorized.

The council of a municipality shall have
power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage and
connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,
lift stations, service connections, and other appurtenances of a sewer system, within and
without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems and
special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
treatment plants, and other appurtenances of a water works system, within and without the
corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
systems in existing buildings, but only upon a petition pursuant to section 429.031,
subdivision 3.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and other
communications purposes, deleted text begin if the council finds that: deleted text end new text begin provided that the municipality must:
new text end

deleted text begin (i) the facilities are necessary to make available Internet access or other communications
services that are not and will not be available through other providers or the private market
in the reasonably foreseeable future; and
deleted text end

deleted text begin (ii) the service to be provided by the facilities will not compete with service provided
by private entities.
deleted text end

new text begin (i) not discriminate in favor of the municipality's own communications facilities by
granting the municipality more favorable or less burdensome terms and conditions than a
competitive service provider with respect to: (A) access and use of public rights-of-way;
(B) access and use of municipally owned or controlled conduit, towers, and utility poles;
and (C) permitting fees charged to access municipally owned and managed facilities;
new text end

new text begin (ii) maintain separation between the municipality's role as a regulator over firms that
offer services in competition with the services offered by the municipality over the
municipality's communications service facilities, and the municipality's role as a competitive
provider of services over the municipality's communications service facilities; and
new text end

new text begin (iii) not share inside information between employees or contractors responsible for
executing the municipality's role as a regulator over firms that offer communications services
in competition with the communication services offered by the municipality, and employees
or contractors responsible for executing the municipality's role as a competitive
communications services provider.
new text end

(20) To assess affected property owners for all or a portion of the costs agreed to with
an electric utility, telecommunications carrier, or cable system operator to bury or alter a
new or existing distribution system within the public right-of-way that exceeds the utility's
design and construction standards, or those set by law, tariff, or franchise, but only upon
petition under section 429.031, subdivision 3.

(21) To assess affected property owners for repayment of voluntary energy improvement
financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.

(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy
improvement projects in existing buildings, provided that:

(i) a petition for the improvement is made by a property owner under section 429.031,
subdivision 3;

(ii) the municipality funds and administers the energy improvement project;

(iii) project funds are only used for the installation of improvements to heating,
ventilation, and air conditioning equipment and building envelope and for the installation
of renewable energy systems;

(iv) each property owner petitioning for the improvement receives notice that free or
low-cost energy improvements may be available under federal, state, or utility programs;

(v) for energy improvement projects on residential property, only residential property
having five or more units may obtain financing for projects under this clause; and

(vi) prior to financing an energy improvement project or imposing an assessment for a
project, written notice is provided to the mortgage lender of any mortgage encumbering or
otherwise secured by the property proposed to be improved.

ARTICLE 5

LIQUOR

Section 1.

Minnesota Statutes 2022, section 340A.404, subdivision 2, is amended to read:

Subd. 2.

Special provision; city of Minneapolis.

(a) The city of Minneapolis may issue
an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the
Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding
the limitations of law, or local ordinance, or charter provision relating to zoning or school
or church distances. The licenses authorize sales on all days of the week to holders of tickets
for performances presented by the theaters and to members of the nonprofit corporations
holding the licenses and to their guests.

(b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland
Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510
Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter
provision.

(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah
Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue
South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter
provision relating to zoning or school or church distances.

(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
American Association of University Women, Minneapolis branch, for use on the premises
owned by the American Association of University Women, Minneapolis branch, at 2115
Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local
ordinances, or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent
malt liquor license to a restaurant located at 5000 Penn Avenue South, and an on-sale wine
license and an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue
South, notwithstanding any law or local ordinance or charter provision.

(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue South, the
Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the
Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located
at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 Lyndale Avenue South,
Brave New Institute located at 2605 Hennepin Avenue South, the Guthrie Lab located at
700 North First Street, and the Southern Theatre located at 1420 Washington Avenue South,
notwithstanding any law or local ordinance or charter provision. The license authorizes
sales on all days of the week.

(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to University
Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant or catering
operator at the building owned and operated by the University Gateway Corporation on the
University of Minnesota campus, notwithstanding limitations of law, or local ordinance or
charter provision. The license authorizes sales on all days of the week.

(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Walker
Art Center's concessionaire or operator, for a restaurant and catering operator on the premises
of the Walker Art Center, notwithstanding limitations of law, or local ordinance or charter
provisions. The license authorizes sales on all days of the week.

(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie
Theater's concessionaire or operator for a restaurant and catering operator on the premises
of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or charter
provisions. The license authorizes sales on all days of the week.

(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or operator
for a restaurant and catering operator on the premises of the Minnesota Book and Literary
Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local ordinance
or charter provision. The license authorizes sales on all days of the week.

(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant
located at 5411 Penn Avenue South, notwithstanding any law or local ordinance or charter
provision.

(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Museum
of Russian Art's concessionaire or operator for a restaurant and catering operator on the
premises of the Museum of Russian Art located at 5500 Stevens Avenue South,
notwithstanding any law or local ordinance or charter provision.

(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
American Swedish Institute or to its concessionaire or operator for use on the premises
owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding
limitations of law, or local ordinances, or charter provision relating to zoning or school or
church distances.

(n) Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue one or more on-sale intoxicating liquor licenses to the Minneapolis
Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity holding a concessions
or catering contract with the Minneapolis Institute of Arts for use on the premises of the
Minneapolis Institute of Arts. The licenses authorized by this subdivision may be issued
for space that is not compact and contiguous, provided that all such space is included in the
description of the licensed premises on the approved license application. The licenses
authorize sales on all days of the week.

(o) The city of Minneapolis may issue an on-sale intoxicating liquor license to Norway
House or to its concessionaire or operator for use on the premises owned by Norway House
at 913 East Franklin Avenue, notwithstanding limitations of law, or local ordinances, or
charter provision relating to zoning or school or church distances.

(p) Notwithstanding any other law, new text begin including section 340A.504, subdivision 3, relating
to seating requirements, new text end local ordinance, or charter provision, the city of Minneapolis may
issue one or more on-sale intoxicating liquor licenses to any entity holding a concessions
or catering contract with the Minneapolis Park and Recreation Board for use on deleted text begin the deleted text end new text begin
Minneapolis Park and Recreation Board new text end premises deleted text begin of the Downtown Commons Park, the
Minneapolis Sculpture Garden, or at Boom Island Park deleted text end . The licenses authorized by this
subdivision may be used for space specified within the park property, provided all such
space is included in the description of the licensed premises on the approved license
application. The licenses authorize sales on the dates on the approved license application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 2.

Laws 2022, chapter 86, article 2, section 3, is amended to read:

Sec. 3. CITY OF ST. PAUL; LICENSE AUTHORIZED.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St.
Paul may issue a temporary on-sale malt liquor license to the Thai Cultural Council of
Minnesota new text begin or to a person or entity holding a concessions contract with the Thai Cultural
Council of Minnesota new text end . The license may authorize the sale of malt liquor on the grounds of
the State Capitol for both days of the Minnesota Songkran Festival. All provisions of
Minnesota Statutes, section 340A.404, subdivision 10, not inconsistent with this section,
apply to the license authorized by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 3. new text begin SPECIAL LIQUOR LAW; CITY OF LITCHFIELD.
new text end

new text begin Notwithstanding Minnesota Statutes, section 624.701, the city of Litchfield may issue
an on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph
(d), for sales at town ball games played at a ballpark on school grounds, provided that the
board of Independent School District No. 465, Litchfield, adopts a resolution approving the
issuance of the license. The provisions of Minnesota Statutes, section 624.701, do not apply
to the school grounds or buildings for a license issued under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Litchfield City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 4. new text begin SPECIAL LIQUOR LAW; CITY OF WATKINS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 624.701, the city of Watkins may issue an
on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph (d),
for sales at town ball games played at a ballpark on school grounds, provided the board of
Independent School District No. 463, Eden Valley-Watkins, adopts a resolution approving
the issuance of the license. The provisions of Minnesota Statutes, section 624.701, do not
apply to the school grounds or buildings for a license issued under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Watkins City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 5. new text begin SPORTS AND EVENT CENTER LICENSE; EAGAN.
new text end

new text begin Notwithstanding Minnesota Statutes, chapter 340A, or any other local law or ordinance
to the contrary, the city of Eagan may issue up to three on-sale intoxicating liquor licenses
to the owner of a multiuse sports and event center located on property in the city of Eagan,
legally described as Outlot A, Viking Lakes 3rd Addition, or as may be described hereafter
due to subdivision or replatting, or to any facility operator, concessionaire, catering operator,
or other third-party food and beverage vendor for the center under contract with the owner.
A license issued under this section may be issued for a space that is not compact and
contiguous, provided that the licensed premises shall only be the space described in the
approved license. A license issued under this section authorizes sales on all days of the
week. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section,
apply to a license issued under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Eagan City Council
and compliance with Minnesota Statutes, section 645.021.
new text end

APPENDIX

Repealed Minnesota Statutes: H4077-1

45.014 SEAL OF DEPARTMENT OF COMMERCE.

The commissioner of commerce shall devise a seal for official use as the seal of the Department of Commerce. The seal must be capable of being legibly reproduced under photographic methods. A description of the seal, and a copy of it, must be filed in the Office of the Secretary of State.

53B.58 PAYROLL PROCESSING SERVICES; DISCLOSURES.

(a) A licensee that provides payroll processing services must:

(1) issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and

(2) make available worker pay stubs or an equivalent statement to workers.

(b) Paragraph (a) does not apply to a licensee providing payroll processing services if the licensee's client designates the intended recipients to the licensee and is responsible for providing the disclosures required by paragraph (a), clause (2).

58.08 BONDS; LETTERS OF CREDIT.

Subd. 3.

Exemption.

Subdivision 2 does not apply to mortgage originators or mortgage servicers who are approved as seller/servicers by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

82B.25 VALUATION BIAS.

Subdivision 1.

Definition.

For the purposes of this section, "valuation bias" means to explicitly, implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased manner that harms a protected class, as defined by the Fair Housing Act of 1968, as amended.

Subd. 2.

Education.

A real property appraiser shall provide to the commissioner evidence of satisfactory completion of a continuing education course on the valuation bias of real property. An appraiser licensed after September 1, 2021, must complete the course required by this section prior to the appraiser's first license renewal.

239.791 OXYGENATED GASOLINE.

Subd. 3.

Blending restriction.

When gasoline contains an oxygenate, a person responsible for the product shall not blend the product with ethanol or with any other oxygenate after it is transferred or otherwise removed from a refinery or terminal.

332.3351 EXEMPTION FROM LICENSURE.

A collection agency shall be exempt from the licensing and registration requirements of this chapter if all of the following conditions are met:

(1) the agency is located in another state that regulates and licenses collection agencies, but does not require a Minnesota collection agency to obtain a license to collect debts in the agency's state if the agency's collection activities are limited in the same manner;

(2) the agency's collection activities are limited to collecting debts not incurred in this state from consumers located in this state; and

(3) the agency's collection activities in Minnesota are conducted by means of interstate communications, including telephone, mail, electronic mail, or facsimile transmission.

332.71 DEFINITIONS.

Subd. 8.

Harassment.

"Harassment" has the meaning given in section 609.748.

559.201 DEFINITIONS.

Subdivision 1.

Application.

The definitions in this section apply to section 559.202.

Subd. 2.

Business day.

"Business day" means any day other than a Saturday, Sunday, or holiday as defined in section 645.44, subdivision 5.

Subd. 3.

Family farm security loan.

"Family farm security loan" has the meaning given in Minnesota Statutes 2008, section 41.52, subdivision 5.

Subd. 4.

Multiple seller.

"Multiple seller" means a person that has acted as a seller in four or more contracts for deed involving residential real property during the 12-month period that precedes either: (1) the date on which the purchaser executes a purchase agreement under section 559.202; or (2) if there is no purchase agreement, the date on which the purchaser executes a contract for deed under section 559.202. A contract for deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed for the purposes of determining whether a seller is a multiple seller.

Subd. 5.

Person.

"Person" means a natural person, partnership, corporation, limited liability company, association, trust, or other legal entity, however organized.

Subd. 6.

Purchase agreement.

"Purchase agreement" means a purchase agreement for a contract for deed, an earnest money contract, or an executed option contemplating that, at closing, the seller and the purchaser will enter into a contract for deed.

Subd. 7.

Purchaser.

"Purchaser" means a natural person who enters into a contract for deed to purchase residential real property. Purchaser includes all purchasers who enter into the same contract for deed to purchase residential real property.

Subd. 8.

Residential real property.

"Residential real property" means real property consisting of one to four family dwelling units, one of which the purchaser intends to occupy as the purchaser's principal place of residence. Residential real property does not include property subject to a family farm security loan or a transaction subject to sections 583.20 to 583.32.

559.202 CONTRACTS FOR DEED INVOLVING RESIDENTIAL PROPERTY.

Subdivision 1.

Notice required.

(a) In addition to the disclosures required under sections 513.52 to 513.60, a multiple seller must deliver the notice specified under subdivision 3 to a prospective purchaser as provided under this subdivision.

(b) If there is a purchase agreement, the notice must be affixed to the front of the purchase agreement. A contract for deed for which notice is required under this subdivision may not be executed for five business days following the execution of the purchase agreement and delivery of the notice and instructions for cancellation.

(c) If there is no purchase agreement, a multiple seller must deliver the notice in a document separate from any other document or writing to a prospective purchaser no less than five business days before the prospective purchaser executes the contract for deed.

(d) The notice must be:

(1) written in at least 12-point type; and

(2) signed and dated by the purchaser.

(e) If a dispute arises concerning whether or when the notice required by this subdivision was provided to the purchaser, there is a rebuttable presumption that the notice was not provided unless the original executed contract for deed contains the following statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges receipt at least five business days before signing this contract for deed of the disclosure statement entitled "Important Information About Contracts for Deed" required by Minnesota Statutes, section 559.202, subdivision 3."

Subd. 2.

Exception.

This section does not apply to sales made under chapter 282 or if the purchaser is represented throughout the transaction by either:

(1) a person licensed to practice law in this state; or

(2) a person licensed as a real estate broker or salesperson under chapter 82, provided that the representation does not create a dual agency, as that term is defined in section 82.55, subdivision 6.

Subd. 3.

Content of the notice.

The notice must contain the following verbatim language:

"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED

Know What You Are Getting Into

(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage foreclosure laws don't apply.

(2) You should know ALL of your obligations and rights before you sign a purchase agreement or contract for deed.

(3) You (seller must circle one):

(a)	DO	DO NOT	have to pay homeowner's insurance.
(b)	DO	DO NOT	have to pay property taxes.
(c)	DO	DO NOT	have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed.

(4) After some time, you may need to make a large lump sum payment (called a "balloon payment"). Know when it is due and how much it will be. You'll probably need to get a new mortgage, another financial arrangement, or pay for the balance in cash at that time.

(5) If you miss just a single payment or can't make the balloon payment, the seller can cancel your contract. You will likely lose all the money you have already paid. You will likely lose your ability to purchase the home. The seller can begin an eviction action against you in just a few months.

(6) Within four months of signing the contract for deed, you must "record" it in the office of the county recorder or registrar of titles in the county in which the property is located. If you do not do so, you could face a fine.

Key Things Highly Recommended Before You Sign

(1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466 or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association, go to www.mnfindalawyer.com.

(2) Get an independent, professional appraisal of the property to learn what it is worth.

(3) Get an independent, professional inspection of the property.

(4) Buy title insurance or ask a real estate lawyer for a "title opinion."

(5) Check with the city or county to find out if there are inspection reports or unpaid utility bills.

(6) Check with a title agent or the county where the property is located to find out if there is a mortgage or other lien on the property and if the property taxes have been paid.

(7) Ensure that your interest rate does not exceed the maximum allowed by law by calling the Department of Commerce to get a recorded message for the current month's maximum rate.

If You Are Entering into a Purchase Agreement

(1) If you haven't already signed the contract for deed, you can cancel the purchase agreement (and get all your money back) if you do so within five business days after getting this notice.

(2) To cancel the purchase agreement, you must follow the provisions of Minnesota Statutes, section 559.217, subdivision 4. Ask a lawyer for help."

Subd. 4.

Right to cancel purchase agreement.

(a) A prospective purchaser may cancel a purchase agreement within five business days after actually receiving the notice required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided that the contract for deed has not been executed by all parties.

(b) A prospective purchaser may cancel the purchase agreement in accordance with the provisions of section 559.217, subdivision 4.

(c) In the event of cancellation, the multiple seller may not impose a penalty and must promptly refund all payments made by the prospective purchaser prior to cancellation.

Subd. 5.

Remedies for failure to timely deliver notices.

(a) Notwithstanding any contrary provision in the purchase agreement or contract for deed, a purchaser has a private right of action against a multiple seller who fails to timely deliver the notice required under subdivision 1. The multiple seller is liable to the purchaser for:

(1) the greater of actual damages or statutory damages of $2,500; and

(2) reasonable attorney fees and court costs.

(b) A multiple seller who knowingly fails to timely deliver the notice required under subdivision 1 is liable to the purchaser for triple the actual or statutory damages available under paragraph (a), whichever is greater, provided that the purchaser must elect the remedy provided under either paragraph (a) or this paragraph and may not recover damages under both paragraphs.

(c) The rights and remedies provided in this subdivision are cumulative to, and not a limitation of, any other rights and remedies provided under law. An action brought pursuant to this subdivision must be commenced within four years from the date of the alleged violation.

Subd. 6.

Effects of violation.

A violation of this section has no effect on the validity of the contract.

Subd. 7.

Duty of multiple seller to account.

Upon reasonable request by the purchaser and no more than once every 12-month period, a multiple seller must provide an accounting of all payments made pursuant to the contract for deed, the amount of interest paid, and the amount remaining to satisfy the principal balance under the contract.

Subd. 8.

No waiver.

The provisions of this section may not be waived.