HF 1853

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:27 p.m.

1.1A bill for an act 1.2relating to commerce; regulating various licenses, forms, certificates, coverages, 1.3claims practices, disclosures, notices, marketing practices, and records; 1.4classifying certain data; removing certain state regulation of telephone 1.5solicitations; regulating the use of prerecorded or synthesized voice messages; 1.6regulating debt management services providers; regulating business screening 1.7services; permitting a deceased professional's surviving spouse to retain 1.8ownership of a professional firm under certain circumstances; amending 1.9Minnesota Statutes 2008, sections 13.3215; 13.716, by adding a subdivision; 1.1045.011, subdivision 1; 45.0135, subdivision 7; 58.02, subdivision 17; 59B.01; 1.1160A.08, by adding a subdivision; 60A.198, subdivisions 1, 3; 60A.201, 1.12subdivision 3; 60A.205, subdivision 1; 60A.2085, subdivisions 1, 3, 7, 8; 60A.23, 1.13subdivision 8; 60A.235; 60A.32; 60K.46, by adding a subdivision; 62A.011, 1.14subdivision 3; 62A.136; 62A.17, by adding a subdivision; 62A.3099, subdivision 1.1518; 62A.31, subdivision 1, by adding a subdivision; 62A.315; 62A.316; 62L.02, 1.16subdivision 26; 62M.05, subdivision 3a; 65A.27, subdivision 1; 65A.29, by 1.17adding a subdivision; 65B.133, subdivisions 2, 3, 4; 65B.54, subdivision 1; 1.1867A.191, subdivision 2; 72A.20, subdivisions 15, 26; 72A.201, by adding a 1.19subdivision; 79A.04, subdivision 1; 79A.06, by adding a subdivision; 79A.24, 1.20subdivision 1, by adding a subdivision; 82.31, subdivision 4; 82B.08, by adding a 1.21subdivision; 82B.20, subdivision 2; 319B.02, by adding a subdivision; 319B.07, 1.22subdivision 1; 319B.08; 319B.09, subdivision 1; 325E.27; 332.70, subdivisions 1.231, 2, 3, 4; 332A.02, subdivision 13, as amended; 332A.14, as amended; Laws 1.242009, chapter 37, article 4, sections 19, subdivision 13; 20; 23; 26, subdivision 1.252; proposing coding for new law in Minnesota Statutes, chapters 60A; 62A; 1.2672A; 80A; 82B; 325E; repealing Minnesota Statutes 2008, sections 60A.201, 1.27subdivision 4; 70A.07; 79.56, subdivision 4. 1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.29    Section 1. Minnesota Statutes 2008, section 13.3215, is amended to read: 1.3013.3215 UNIVERSITY OF MINNESOTA DATA. 1.31     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 terms in this new text end 1.32 new text begin subdivision have the meanings given them. new text end 2.1 new text begin (b) "Business data" is data described in section 13.591, subdivision 1, and includes new text end 2.2 new text begin the funded amount of the University of Minnesota's commitment to the investment to new text end 2.3 new text begin date, if any; the market value of the investment by the University of Minnesota; and the new text end 2.4 new text begin age of the investment in years. new text end 2.5 new text begin (c) "Financial, business, or proprietary data" means data, as determined by the new text end 2.6 new text begin responsible authority for the University of Minnesota, that is of a financial, business, or new text end 2.7 new text begin proprietary nature, the release of which could cause competitive harm to the University new text end 2.8 new text begin of Minnesota, the legal entity in which the University of Minnesota has invested or has new text end 2.9 new text begin considered an investment, the managing entity of an investment, or a portfolio company in new text end 2.10 new text begin which the legal entity holds an interest. new text end 2.11 new text begin (d) "Investment" means the investments by the University of Minnesota in the new text end 2.12 new text begin following private capital: new text end 2.13 new text begin (1) venture capital and other private equity investment businesses through new text end 2.14 new text begin participation in limited partnerships, trusts, limited liability corporations, limited liability new text end 2.15 new text begin companies, limited liability partnerships, and corporations; new text end 2.16 new text begin (2) real estate ownership interests or loans secured by mortgages or deeds of trust or new text end 2.17 new text begin shares of real estate investment trusts through investment in limited partnerships; and new text end 2.18 new text begin (3) natural resource investments through limited partnerships, trusts, limited liability new text end 2.19 new text begin corporations, limited liability companies, limited liability partnerships, and corporations. new text end 2.20     new text begin Subd. 2. new text end new text begin Claims experience data. new text end Claims experience and all related information 2.21received from carriers and claims administrators participating in a University of Minnesota 2.22group health, dental, life, or disability insurance plan or the University of Minnesota 2.23workers' compensation program, and survey information collected from employees or 2.24students participating in these plans and programs, except when the university determines 2.25that release of the data will not be detrimental to the plan or program, are classified as 2.26nonpublic data not on individuals pursuant to new text begin under new text end section 13.02, subdivision 9. 2.27     new text begin Subd. 3. new text end new text begin Private equity investment data. new text end new text begin (a) Financial, business, or proprietary new text end 2.28 new text begin data collected, created, received, or maintained by the University of Minnesota in new text end 2.29 new text begin connection with investments are nonpublic data. new text end 2.30 new text begin (b) The following data shall be public: new text end 2.31 new text begin (1) the name of the general partners and the legal entity in which the University of new text end 2.32 new text begin Minnesota has invested; new text end 2.33 new text begin (2) the amount of the University's initial commitment, and any subsequent new text end 2.34 new text begin commitments; new text end 2.35 new text begin (3) quarterly reports which outline the aggregate investment performance achieved new text end 2.36 new text begin and the market value, and the fees and expenses paid in aggregate to general partner new text end 3.1 new text begin investment managers in each of the following specific asset classes: venture capital, new text end 3.2 new text begin private equity, distressed debt, private real estate, and natural resources; new text end 3.3 new text begin (4) a description of all of the types of industry sectors the University of Minnesota is new text end 3.4 new text begin or has invested in, in each specific private equity asset class; and new text end 3.5 new text begin (5) the portfolio performance of University of Minnesota investments overall, new text end 3.6 new text begin including the number of investments, the total amount of the University of Minnesota new text end 3.7 new text begin commitments, the total current market value, and the return on the total investment new text end 3.8 new text begin portfolio. new text end 3.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 3.10    Sec. 2. Minnesota Statutes 2008, section 13.716, is amended by adding a subdivision 3.11to read: 3.12     new text begin Subd. 8. new text end new text begin Insurance filings data. new text end new text begin Insurance filings data received by the new text end 3.13 new text begin commissioner of commerce are classified under section 60A.08, subdivision 15. new text end 3.14    Sec. 3. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read: 3.15    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, 345, and 3.16359, and sections new text begin 123A.21, subdivision 7, paragraph (a), clause (23); 123A.25; new text end 325D.30 to 3.17325D.42 , new text begin ; new text end 326B.802 to 326B.885, and new text begin ; new text end 386.61 to 386.78, new text begin ; new text end new text begin 471.617; and 471.982, new text end unless 3.18the context indicates otherwise, the terms defined in this section have the meanings given 3.19them. 3.20    Sec. 4. Minnesota Statutes 2008, section 45.0135, subdivision 7, is amended to read: 3.21    Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of 3.22Minnesota new text begin , including surplus lines carriers, and having Minnesota earned premium the new text end 3.23 new text begin previous calendar year new text end shall remit an assessment to the commissioner for deposit in the 3.24insurance fraud prevention account on or before June 1 of each year. The amount of the 3.25assessment shall be based on the insurer's total assets and on the insurer's total written 3.26Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13. 3.27The assessment is calculated as follows new text begin to be an amount up to the following new text end : 3.28 Total Assets Assessment 3.29 Less than $100,000,000 $ 200 3.30 $100,000,000 to $1,000,000,000 $ 750 3.31 Over $1,000,000,000 $ 2,000 3.32 Minnesota Written Premium Assessment 3.33 Less than $10,000,000 $ 200 4.1 $10,000,000 to $100,000,000 $ 750 4.2 Over $100,000,000 $ 2,000 4.3For purposes of this subdivision, the following entities are not considered to be 4.4insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or 4.5township mutuals organized under chapter 67A. 4.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 4.7    Sec. 5. Minnesota Statutes 2008, section 58.02, subdivision 17, is amended to read: 4.8    Subd. 17. Person in control. "Person in control" means any member of senior 4.9management new text begin , including owners or officers, new text end and other persons who possess, directly 4.10or indirectly, the power to direct or cause the direction of the management policies of 4.11an applicant or licensee under this chapter, regardless of whether the person has any 4.12ownership interest in the applicant or licensee. Control is presumed to exist if a person, 4.13directly or indirectly, owns, controls, or holds with power to vote ten percent or more of 4.14the voting stock of an applicant or licensee or of a person who owns, controls, or holds 4.15with power to vote ten percent or more of the voting stock of an applicant or licensee. 4.16    Sec. 6. Minnesota Statutes 2008, section 59B.01, is amended to read: 4.1759B.01 SCOPE AND PURPOSE. 4.18    (a) The purpose of this chapter is to create a legal framework within which service 4.19contracts may be sold in this state. 4.20    (b) The following are exempt from this chapter: 4.21    (1) warranties; 4.22    (2) maintenance agreements; 4.23    (3) warranties, service contracts, or maintenance agreements offered by public 4.24utilities, as defined in section 216B.02, subdivision 4, or an entity or operating unit owned 4.25by or under common control with a public utility; 4.26    (4) service contracts sold or offered for sale to persons other than consumers; 4.27    (5) service contracts on tangible property where the tangible property for which the 4.28service contract is sold has a purchase price of $250 or less, exclusive of sales tax; 4.29    (6) service contracts for home security equipment installed by a licensed technology 4.30systems contractor; and 4.31    (7) motor club membership contracts that typically provide roadside assistance 4.32services to motorists stranded for reasons that include, but are not limited to, mechanical 4.33breakdown or adverse road conditions. 5.1    (c) The types of agreements referred to in paragraph (b) are not subject to chapters 5.260A to 79A, except as otherwise specifically provided by law. 5.3    (d) Service contracts issued by motor vehicle manufacturers covering private 5.4passenger automobiles are only subject to sections 59B.03, subdivision 5, 59B.05, and 5.559B.07 . 5.6     new text begin (e) All warranty service contracts are deemed to be made in Minnesota for the new text end 5.7 new text begin purpose of arbitration. new text end 5.8    Sec. 7. Minnesota Statutes 2008, section 60A.08, is amended by adding a subdivision 5.9to read: 5.10     new text begin Subd. 15. new text end new text begin Classification of insurance filings data. new text end new text begin (1) All forms, rates, and related new text end 5.11 new text begin information filed with the commissioner under section 61A.02 shall be nonpublic data new text end 5.12 new text begin until the filing becomes effective. new text end 5.13     new text begin (2) All forms, rates, and related information filed with the commissioner under new text end 5.14 new text begin section 62A.02 shall be nonpublic data until the filing becomes effective. new text end 5.15     new text begin (3) All forms, rates, and related information filed with the commissioner under new text end 5.16 new text begin section 62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective. new text end 5.17     new text begin (4) All forms, rates, and related information filed with the commissioner under new text end 5.18 new text begin section 70A.06 shall be nonpublic data until the filing becomes effective. new text end 5.19     new text begin (5) All forms, rates, and related information filed with the commissioner under new text end 5.20 new text begin section 79.56 shall be nonpublic data until the filing becomes effective. new text end 5.21    Sec. 8. new text begin [60A.1755] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE new text end 5.22 new text begin OF SOURCE. new text end 5.23 new text begin An insurance company shall not require an insurance agent to maintain insurance new text end 5.24 new text begin coverage for the agent's errors and omissions from a specific insurance company. This new text end 5.25 new text begin section does not apply if the insurance producer is a captive producer or employee of the new text end 5.26 new text begin insurance company imposing the requirement, or if that insurance company or affiliated new text end 5.27 new text begin broker-dealer pays for or contributes to the premiums for the errors and omissions new text end 5.28 new text begin coverage. For purposes of this section, "captive producer" means a producer that writes new text end 5.29 new text begin 80 percent or more of the producer's gross annual insurance business for that insurance new text end 5.30 new text begin company or any or all of its subsidiaries. Nothing in this section shall prohibit an insurance new text end 5.31 new text begin company from requiring an insurance producer to maintain errors and omissions coverage new text end 5.32 new text begin or requiring that errors and omissions coverage meet certain criteria. new text end 5.33    Sec. 9. Minnesota Statutes 2008, section 60A.198, subdivision 1, is amended to read: 6.1    Subdivision 1. License required. A person, as defined in section 60A.02, 6.2subdivision 7 , shall not act in any other manner as an agent or broker in the transaction 6.3of surplus lines insurance unless licensed under sections 60A.195 to 60A.209. A surplus 6.4lines license is not required for a licensed resident agent who assists in the procurement 6.5 new text begin placement new text end of surplus lines insurance with a surplus lines licensee pursuant to sections 6.660A.195 to 60A.209. 6.7    Sec. 10. Minnesota Statutes 2008, section 60A.198, subdivision 3, is amended to read: 6.8    Subd. 3. Procedure for obtaining license. A person licensed as an agent in this 6.9state pursuant to other law may obtain a surplus lines license by doing the following: 6.10(a) filing an application in the form and with the information the commissioner 6.11may reasonably require to determine the ability of the applicant to act in accordance 6.12with sections 60A.195 to 60A.209; 6.13(b) maintaining an agent's license in this state; 6.14 new text begin (c) registering with the association created pursuant to section 60A.2085; new text end 6.15(c) new text begin (d) new text end agreeing to file with the commissioner of revenue all returns required by 6.16chapter 297I and paying to the commissioner of revenue all amounts required under 6.17chapter 297I; and 6.18 new text begin (e) agreeing to file all documents required pursuant to section 60A.2086 and to pay new text end 6.19 new text begin the stamping fee assessed pursuant to section 60A.2085, subdivision 7; and new text end 6.20(d) new text begin (f) new text end paying a fee as prescribed by section 60K.55. 6.21    Sec. 11. Minnesota Statutes 2008, section 60A.201, subdivision 3, is amended to read: 6.22    Subd. 3. Unavailability of other coverage; presumption. There shall be a 6.23rebuttable presumption that the following coverages are unavailable from a licensed 6.24insurer: 6.25    (a) coverages on a list of unavailable coverages maintained by the commissioner 6.26pursuant to subdivision 4; 6.27    (b) coverages where one portion of the risk is acceptable to licensed insurers but 6.28another portion of the same risk is not acceptable. The entire coverage may be placed with 6.29eligible surplus lines insurers if it can be shown that the eligible surplus lines insurer will 6.30accept the entire coverage but not the rejected portion alone; and 6.31    (c) new text begin (b) new text end any coverage that the licensee is unable to procure after diligent search 6.32among licensed insurers. 6.33    Sec. 12. Minnesota Statutes 2008, section 60A.205, subdivision 1, is amended to read: 7.1    Subdivision 1. Authorization. A surplus lines licensee may be compensated by 7.2an eligible surplus lines insurer and the licensee may compensate a licensed resident 7.3agent in this state for obtaining surplus lines insurance business. A licensed resident 7.4agent authorized by the licensee may collect a premium on behalf of the licensee, and as 7.5between the insured and the licensee, the licensee shall be considered to have received the 7.6premium if the premium payment has been made to the agent. 7.7    Sec. 13. Minnesota Statutes 2008, section 60A.2085, subdivision 1, is amended to read: 7.8    Subdivision 1. Association created; duties. There is hereby created a nonprofit 7.9association to be known as the Surplus Lines Association of Minnesota. new text begin The association new text end 7.10 new text begin is not a state agency for purposes of chapter 16A, 16B, 16C, or 43A. new text end All surplus lines 7.11licensees are members of this association. Section 60A.208, subdivision 5, does not apply 7.12to the new text begin association created pursuant to the new text end provisions of this section. The association shall 7.13perform its functions under the plan of operation established under subdivision 3 and must 7.14exercise its powers through a board of directors established under subdivision 2 new text begin as set new text end 7.15 new text begin forth in the plan of operation new text end . The association shall be authorized and have the duty to: 7.16    (1) receive, record, and stamp all surplus lines insurance documents that surplus 7.17lines licensees are required to file with the association; 7.18    (2) prepare and deliver monthly to the commissioners of revenue and commerce a 7.19report regarding surplus lines business. The report must include a list of all the business 7.20procured during the preceding month, in the form the commissioners prescribe; 7.21    (3) educate its members regarding the surplus lines law of this state including 7.22insurance tax responsibilities and the rules and regulations of the commissioners of 7.23revenue and commerce relative to surplus lines insurance; 7.24    (4) communicate with organizations of agents, brokers, and admitted insurers with 7.25respect to the proper use of the surplus lines market; 7.26    (5) employ and retain persons necessary to carry out the duties of the association; 7.27    (6) borrow money necessary to effect the purposes of the association new text begin and grant a new text end 7.28 new text begin security interest or mortgage in its assets, including the stamping fees charged pursuant to new text end 7.29 new text begin subdivision 7 in order to secure the repayment of any such borrowed money new text end ; 7.30    (7) enter contracts necessary to effect the purposes of the association; 7.31    (8) provide other services to its members that are incidental or related to the 7.32purposes of the association; and 7.33 new text begin (9) form and organize itself as a nonprofit corporation under chapter 317A, with the new text end 7.34 new text begin powers set forth in section 317A.161 that are not otherwise limited by this section or in new text end 7.35 new text begin its articles, bylaws, or plan of operation; new text end 8.1 new text begin (10) file such applications and take such other action as necessary to establish and new text end 8.2 new text begin maintain the association as tax exempt pursuant to the federal income tax code; new text end 8.3 new text begin (11) recommend to the commissioner of commerce revisions to Minnesota law new text end 8.4 new text begin relating to the regulation of surplus lines insurance in order to improve the efficiency new text end 8.5 new text begin and effectiveness of that regulation; and new text end 8.6    (9) new text begin (12) new text end take other actions reasonably required to implement the provisions of this 8.7section. 8.8    Sec. 14. Minnesota Statutes 2008, section 60A.2085, subdivision 3, is amended to read: 8.9    Subd. 3. Plan of operation. (a) The plan of operation shall provide for the 8.10formation, operation, and governance of the association new text begin as a nonprofit corporation new text end 8.11 new text begin under chapter 317A new text end . The plan of operation must provide for the election of a board of 8.12directors by the members of the association. The board of directors shall elect officers as 8.13provided for in the plan of operation. The plan of operation shall establish the manner of 8.14voting and may weigh each member's vote to reflect the annual surplus lines insurance 8.15premium written by the member. Members employed by the same or affiliated employers 8.16may consolidate their premiums written and delegate an individual officer or partner 8.17to represent the member in the exercise of association affairs, including service on the 8.18board of directors. 8.19    (b) The plan of operation shall provide for an independent audit once each year of all 8.20the books and records of the association and a report of such independent audit shall be 8.21made to the board of directors, the commissioner of revenue, and the commissioner of 8.22commerce, with a copy made available to each member to review at the association office. 8.23    (c) The plan of operation and any amendments to the plan of operation shall be 8.24submitted to the commissioner and shall be effective upon approval in writing by the 8.25commissioner. The association and all members shall comply with the plan of operation or 8.26any amendments to it. Failure to comply with the plan of operation or any amendments 8.27shall constitute a violation for which the commissioner may issue an order requiring 8.28discontinuance of the violation. 8.29    (d) If the interim board of directors fails to submit a suitable plan of operation 8.30within 60 days following the creation of the interim board, or if at any time thereafter the 8.31association fails to submit required amendments to the plan, the commissioner may submit 8.32to the association a plan of operation or amendments to the plan, which the association 8.33must follow. The plan of operation or amendments submitted by the commissioner shall 8.34continue in force until amended by the commissioner or superseded by a plan of operation 8.35or amendment submitted by the association and approved by the commissioner. A plan 9.1of operation or an amendment submitted by the commissioner constitutes an order of 9.2the commissioner. 9.3    Sec. 15. Minnesota Statutes 2008, section 60A.2085, subdivision 7, is amended to read: 9.4    Subd. 7. Stamping fee. The services performed by the association shall be 9.5funded by a stamping fee assessed for each premium-bearing document submitted to 9.6the association. The stamping fee shall be established by the board of directors of the 9.7association from time to time. The stamping fee shall be paid by the insured to the surplus 9.8lines licensee and remitted electronically to the association by the surplus lines licensee new text begin in new text end 9.9 new text begin the manner established by the association new text end . 9.10    Sec. 16. Minnesota Statutes 2008, section 60A.2085, subdivision 8, is amended to read: 9.11    Subd. 8. Data classification. Unless otherwise classified by statute, a temporary 9.12classification under section 13.06, or federal law, information obtained by the 9.13commissioner from the association is public, except that any data identifying insureds new text begin or new text end 9.14 new text begin the Social Security number of a licensee or any information derived therefrom new text end is private 9.15data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12. 9.16    Sec. 17. Minnesota Statutes 2008, section 60A.23, subdivision 8, is amended to read: 9.17    Subd. 8. Self-insurance or insurance plan administrators who are vendors 9.18of risk management services. (1) Scope. This subdivision applies to any vendor of 9.19risk management services and to any entity which administers, for compensation, a 9.20self-insurance or insurance plan. This subdivision does not apply (a) to an insurance 9.21company authorized to transact insurance in this state, as defined by section 60A.06, 9.22subdivision 1, clauses (4) and (5) ; (b) to a service plan corporation, as defined by section 9.2362C.02, subdivision 6 ; (c) to a health maintenance organization, as defined by section 9.2462D.02, subdivision 4 ; (d) to an employer directly operating a self-insurance plan for 9.25its employees' benefits; (e) to an entity which administers a program of health benefits 9.26established pursuant to a collective bargaining agreement between an employer, or group 9.27or association of employers, and a union or unions; or (f) to an entity which administers a 9.28self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance 9.29to the plan and if the licensed insurer has appointed the entity administering the plan as 9.30one of its licensed agents within this state. 9.31(2) Definitions. For purposes of this subdivision the following terms have the 9.32meanings given them. 10.1(a) "Administering a self-insurance or insurance plan" means (i) processing, 10.2reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii) 10.3otherwise providing necessary administrative services in connection with the operation of 10.4a self-insurance or insurance plan. 10.5(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2. 10.6(c) "Entity" means any association, corporation, partnership, sole proprietorship, 10.7trust, or other business entity engaged in or transacting business in this state. 10.8(d) "Self-insurance or insurance plan" means a plan new text begin for the benefit of employees new text end 10.9 new text begin or members of an association new text end providing life, medical or hospital care, accident, sickness 10.10or disability insurance for the benefit of employees or members of an association new text begin , or new text end 10.11 new text begin pharmacy benefits new text end , or a plan providing liability coverage for any other risk or hazard, 10.12which is or is not directly insured or provided by a licensed insurer, service plan 10.13corporation, or health maintenance organization. 10.14(e) "Vendor of risk management services" means an entity providing for 10.15compensation actuarial, financial management, accounting, legal or other services for the 10.16purpose of designing and establishing a self-insurance or insurance plan for an employer. 10.17(3) License. No vendor of risk management services or entity administering a 10.18self-insurance or insurance plan may transact this business in this state unless it is licensed 10.19to do so by the commissioner. An applicant for a license shall state in writing the type of 10.20activities it seeks authorization to engage in and the type of services it seeks authorization 10.21to provide. The license may be granted only when the commissioner is satisfied that the 10.22entity possesses the necessary organization, background, expertise, and financial integrity 10.23to supply the services sought to be offered. The commissioner may issue a license subject 10.24to restrictions or limitations upon the authorization, including the type of services which 10.25may be supplied or the activities which may be engaged in. The license fee is $1,500 10.26for the initial application and $1,500 for each three-year renewal. All licenses are for 10.27a period of three years. 10.28(4) Regulatory restrictions; powers of the commissioner. To assure that 10.29self-insurance or insurance plans are financially solvent, are administered in a fair and 10.30equitable fashion, and are processing claims and paying benefits in a prompt, fair, 10.31and honest manner, vendors of risk management services and entities administering 10.32insurance or self-insurance plans are subject to the supervision and examination by the 10.33commissioner. Vendors of risk management services, entities administering insurance or 10.34self-insurance plans, and insurance or self-insurance plans established or operated by 10.35them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu 10.36of an unlimited guarantee from a parent corporation for a vendor of risk management 11.1services or an entity administering insurance or self-insurance plans, the commissioner 11.2may accept a surety bond in a form satisfactory to the commissioner in an amount equal to 11.3120 percent of the total amount of claims handled by the applicant in the prior year. If at 11.4any time the total amount of claims handled during a year exceeds the amount upon which 11.5the bond was calculated, the administrator shall immediately notify the commissioner. 11.6The commissioner may require that the bond be increased accordingly. 11.7No contract entered into after July 1, 2001, between a licensed vendor of risk 11.8management services and a group authorized to self-insure for workers' compensation 11.9liabilities under section 79A.03, subdivision 6, may take effect until it has been filed 11.10with the commissioner, and either (1) the commissioner has approved it or (2) 60 days 11.11have elapsed and the commissioner has not disapproved it as misleading or violative of 11.12public policy. 11.13(5) Rulemaking authority. To carry out the purposes of this subdivision, the 11.14commissioner may adopt rules pursuant to sections 14.001 to 14.69. These rules may: 11.15(a) establish reporting requirements for administrators of insurance or self-insurance 11.16plans; 11.17(b) establish standards and guidelines to assure the adequacy of financing, reinsuring, 11.18and administration of insurance or self-insurance plans; 11.19(c) establish bonding requirements or other provisions assuring the financial integrity 11.20of entities administering insurance or self-insurance plans; or 11.21(d) establish other reasonable requirements to further the purposes of this 11.22subdivision. 11.23    Sec. 18. Minnesota Statutes 2008, section 60A.235, is amended to read: 11.2460A.235 STANDARDS FOR DETERMINING WHETHER CONTRACTS 11.25ARE HEALTH PLAN CONTRACTS OR STOP LOSS CONTRACTS. 11.26    Subdivision 1. Findings and purpose. The purpose of this section is to establish 11.27a standard for the determination of whether an insurance policy or other evidence or 11.28coverage should be treated as a policy of accident and sickness insurance or a stop loss 11.29policy for the purpose of the regulation of the business of insurance. The laws regulating 11.30the business of insurance in Minnesota impose distinctly different requirements upon 11.31accident and sickness insurance policies and stop loss policies. In particular, the regulation 11.32of accident and sickness insurance in Minnesota includes measures designed to reform the 11.33health insurance market, to minimize or prohibit selective rating or rejection of employee 11.34groups or individual group members based upon health conditions, and to provide access 11.35to affordable health insurance coverage regardless of preexisting health conditions. The 12.1health care reform provisions enacted in Minnesota will only be effective if they are 12.2applied to all insurers and health carriers who in substance, regardless of purported form, 12.3engage in the business of issuing health insurance coverage to employees of an employee 12.4group. This section applies to insurance companies and health carriers and the policies or 12.5other evidence of coverage that they issue. This section does not apply to employers or the 12.6benefit plans they establish for their employees. 12.7    Subd. 2. Definitions. For purposes of this section, the terms defined in this 12.8subdivision have the meanings given. 12.9(a) "Attachment point" means the claims amount new text begin incurred by an insured group new text end 12.10beyond which the insurance company or health carrier incurs a liability for payment. 12.11(b) "Direct coverage" means coverage under which an insurance company or health 12.12carrier assumes a direct obligation to an individual, under the policy or evidence of 12.13coverage, with respect to health care expenses incurred by the individual or a member 12.14of the individual's family. 12.15(c) "Expected claims" means the amount of claims that, in the absence of a stop loss 12.16policy or other insurance or evidence of coverage, are projected to be incurred under new text begin by new text end an 12.17employer-sponsored plan covering health care expenses. 12.18(d) "Expected plan claims" means the expected claims less the projected claims in 12.19excess of the specific attachment point, adjusted to be consistent with the employer's 12.20aggregate contract period. 12.21(e) "Health plan" means a health plan as defined in section 62A.011 and includes 12.22group coverage regardless of the size of the group. 12.23(f) "Health carrier" means a health carrier as defined in section 62A.011. 12.24    Subd. 3. Health plan policies issued as stop loss coverage. (a) An insurance 12.25company or health carrier issuing or renewing an insurance policy or other evidence of 12.26coverage, that provides coverage to an employer for health care expenses incurred under 12.27an employer-sponsored plan provided to the employer's employees, retired employees, 12.28or their dependents, shall issue the policy or evidence of coverage as a health plan if the 12.29policy or evidence of coverage: 12.30(1) has a specific attachment point for claims incurred per individual that is lower 12.31than $10,000 new text begin $20,000 new text end ; or 12.32(2) has an aggregate attachment point new text begin , for groups of 50 or fewer, new text end that is lower than 12.33the sum new text begin greater new text end of: 12.34(i) 140 percent of the first $50,000 of expected plan claims; 12.35(ii) 120 percent of the next $450,000 of expected plan claims; and 12.36(iii) 110 percent of the remaining expected plan claims. 13.1 new text begin (i) $4,000 times the number of group members; new text end 13.2 new text begin (ii) 120 percent of expected claims; or new text end 13.3 new text begin (iii) $20,000; or new text end 13.4 new text begin (3) has an aggregate attachment point for groups of 51 or more that is lower than new text end 13.5 new text begin 110 percent of expected claims. new text end 13.6(b) new text begin An insurer shall determine the number of persons in a group, for the purposes new text end 13.7 new text begin of this section, on a consistent basis, at least annually. new text end Where the insurance policy or 13.8evidence of coverage applies to a contract period of more than one year, the dollar 13.9amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length 13.10of the contract period expressed in years. 13.11(c) The commissioner may adjust the constant dollar amounts provided in paragraph 13.12(a), clauses (1) and new text begin , new text end (2), new text begin and (3), new text end on January 1 of any year, based upon changes in 13.13the medical component of the Consumer Price Index (CPI). Adjustments must be in 13.14increments of $100 and must not be made unless at least that amount of adjustment is 13.15required. The commissioner shall publish any change in these dollar amounts at least 13.16three new text begin six new text end months before their effective date. 13.17(d) A policy or evidence of coverage issued by an insurance company or health 13.18carrier that provides direct coverage of health care expenses of an individual including a 13.19policy or evidence of coverage administered on a group basis is a health plan regardless of 13.20whether the policy or evidence of coverage is denominated as stop loss coverage. 13.21     new text begin Subd. 3a. new text end new text begin Actuarial certification. new text end new text begin An insurer shall file with the commissioner new text end 13.22 new text begin annually on or before March 15, an actuarial certification certifying that the insurer is in new text end 13.23 new text begin compliance with sections 60A.235 and 60A.236. The certification shall be in a form and new text end 13.24 new text begin manner, and shall contain information, specified by the commissioner. A copy of the new text end 13.25 new text begin certification shall be retained by the insurer at its principal place of business. new text end 13.26    Subd. 4. Compliance. (a) An insurance company or health carrier that is required to 13.27issue a policy or evidence of coverage as a health plan under this section shall, even if the 13.28policy or evidence of coverage is denominated as stop loss coverage, comply with all the 13.29laws of this state that apply to the health plan, including, but not limited to, chapters 62A, 13.3062C, 62D, 62E, 62L, and 62Q. 13.31(b) With respect to an employer who had been issued a policy or evidence of 13.32coverage denominated as stop loss coverage before June 2, 1995 new text begin the effective date of this new text end 13.33 new text begin section new text end , compliance with this section is required as of the first renewal date occurring on 13.34or after June 2, 1995 new text begin August 1, 2009, and applies to policies issued or renewed on or new text end 13.35 new text begin after that date new text end . 14.1    Sec. 19. Minnesota Statutes 2008, section 60A.32, is amended to read: 14.260A.32 RATE FILING FOR CROP HAIL INSURANCE. 14.3     new text begin Subdivision 1. new text end new text begin Authority. new text end An insurer issuing policies of insurance against crop 14.4damage by hail in this state shall file its insurance rates with the commissioner new text begin using the new text end 14.5 new text begin expedited filing procedure under subdivision 2 new text end . The insurance rates must be filed before 14.6February 1 of the year in which a policy is issued. 14.7     new text begin Subd. 2. new text end new text begin Compliance certifications. new text end new text begin In addition to the proposed rates, an insurer new text end 14.8 new text begin shall file with the Department of Commerce on a form prescribed by the commissioner a new text end 14.9 new text begin written certification, signed by an officer of the insurer, that the rates comply with section new text end 14.10 new text begin 70A.04. Rates filed under this procedure are effective upon the date of receipt or on a new text end 14.11 new text begin subsequent date requested by the insurer. new text end 14.12     new text begin Subd. 3. new text end new text begin Fee. new text end new text begin In order to be effective, the filing must be accompanied by payment of new text end 14.13 new text begin the applicable filing fee. new text end 14.14    Sec. 20. new text begin [60A.39] CERTIFICATES OF INSURANCE. new text end 14.15     new text begin Subdivision 1. new text end new text begin Issuance. new text end new text begin A licensed insurer or insurance producer may provide to a new text end 14.16 new text begin third party a certificate of insurance which documents insurance coverage. The purpose new text end 14.17 new text begin of a certificate of insurance is to provide evidence of insurance coverage and the amount new text end 14.18 new text begin of insurance issued. new text end 14.19     new text begin Subd. 2. new text end new text begin Approval. new text end new text begin An insurer or licensed producer shall not issue a certificate of new text end 14.20 new text begin insurance or other document or instrument that either affirmatively or negatively amends, new text end 14.21 new text begin extends, or alters the coverage provided by an approved policy, form, or endorsement new text end 14.22 new text begin without the written approval of the commissioner. new text end 14.23     new text begin Subd. 3. new text end new text begin Required statement. new text end new text begin A certificate or memorandum of property or casualty new text end 14.24 new text begin insurance when issued to any person other than the policyholder must contain the following new text end 14.25 new text begin or similar statement: "This certificate or memorandum of insurance does not affirmatively new text end 14.26 new text begin or negatively amend, extend, or alter the coverage afforded by the insurance policy." new text end 14.27     new text begin Subd. 4. new text end new text begin Cancellation notice. new text end new text begin A certificate provided to a third party must not new text end 14.28 new text begin provide for notice of cancellation that exceeds the statutory notice of cancellation provided new text end 14.29 new text begin to the policyholder. new text end 14.30     new text begin Subd. 5. new text end new text begin Filing. new text end new text begin An insurer not using the standard ACORD or ISO form "Certificate new text end 14.31 new text begin of Insurance" shall file with the commissioner, prior to its use, the form of certificate or new text end 14.32 new text begin memorandum of insurance coverage that will be used by the insurer. Filed forms may not new text end 14.33 new text begin be amended at the request of a third party. new text end 15.1     new text begin Subd. 6. new text end new text begin Opinion letters. new text end new text begin A licensed insurance producer may not issue, in lieu of a new text end 15.2 new text begin certificate, an agent's opinion letter or other correspondence that is inconsistent with new text end 15.3 new text begin this section. new text end 15.4    Sec. 21. Minnesota Statutes 2008, section 60K.46, is amended by adding a subdivision 15.5to read: 15.6     new text begin Subd. 8. new text end new text begin Certificates of insurance. new text end new text begin An insurance producer shall not issue a new text end 15.7 new text begin certificate of insurance, or other evidence of insurance coverage that either affirmatively or new text end 15.8 new text begin negatively amends, extends, or alters the coverage as provided by the policy, or provides new text end 15.9 new text begin notice of cancellation to a third party that exceeds the statutory notice requirement to a new text end 15.10 new text begin policyholder. new text end 15.11    Sec. 22. Minnesota Statutes 2008, section 62A.011, subdivision 3, is amended to read: 15.12    Subd. 3. Health plan. "Health plan" means a policy or certificate of accident and 15.13sickness insurance as defined in section 62A.01 offered by an insurance company licensed 15.14under chapter 60A; a subscriber contract or certificate offered by a nonprofit health 15.15service plan corporation operating under chapter 62C; a health maintenance contract or 15.16certificate offered by a health maintenance organization operating under chapter 62D; a 15.17health benefit certificate offered by a fraternal benefit society operating under chapter 15.1864B; or health coverage offered by a joint self-insurance employee health plan operating 15.19under chapter 62H. Health plan means individual and group coverage, unless otherwise 15.20specified. Health plan does not include coverage that is: 15.21(1) limited to disability or income protection coverage; 15.22(2) automobile medical payment coverage; 15.23(3) supplemental to liability insurance; 15.24(4) designed solely to provide payments on a per diem, fixed indemnity, or 15.25non-expense-incurred basis; 15.26(5) credit accident and health insurance as defined in section 62B.02; 15.27(6) designed solely to provide new text begin hearing, new text end dental new text begin , new text end or vision care; 15.28(7) blanket accident and sickness insurance as defined in section 62A.11; 15.29(8) accident-only coverage; 15.30(9) a long-term care policy as defined in section 62A.46 or 62S.01; 15.31(10) issued as a supplement to Medicare, as defined in sections 62A.3099 to 15.3262A.44 , or policies, contracts, or certificates that supplement Medicare issued by health 15.33maintenance organizations or those policies, contracts, or certificates governed by section 16.11833 or 1876 of the federal Social Security Act, United States Code, title 42, section 16.21395, et seq., as amended; 16.3(11) workers' compensation insurance; or 16.4(12) issued solely as a companion to a health maintenance contract as described in 16.5section 62D.12, subdivision 1a, so long as the health maintenance contract meets the 16.6definition of a health plan. 16.7    Sec. 23. Minnesota Statutes 2008, section 62A.136, is amended to read: 16.862A.136 new text begin HEARING, new text end DENTAL new text begin , new text end AND VISION PLAN COVERAGE. 16.9The following provisions do not apply to health plans as defined in section 62A.011, 16.10subdivision 3 , clause (6), providing new text begin hearing, new text end dental new text begin , new text end or vision coverage only: sections 16.1162A.041 ; 62A.0411; 62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17, 16.12subdivision 6 ; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285; 62A.30; 62A.304; 16.1362A.3093 ; and 62E.16. 16.14    Sec. 24. Minnesota Statutes 2008, section 62A.17, is amended by adding a subdivision 16.15to read: 16.16     new text begin Subd. 5b. new text end new text begin Notices required by the American Recovery and Reinvestment Act of new text end 16.17 new text begin 2009 (ARRA). new text end new text begin (a) An employer that maintains a group health plan that is not described in new text end 16.18 new text begin Internal Revenue Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of new text end 16.19 new text begin the American Recovery and Reinvestment Act of 2009 (ARRA), must notify the health new text end 16.20 new text begin carrier of the termination of, or the layoff from, employment of a covered employee, and new text end 16.21 new text begin the name and last known address of the employee, within the later of ten days after the new text end 16.22 new text begin termination or layoff event, or June 8, 2009. new text end 16.23 new text begin (b) The health carrier for a group health plan that is not described in Internal Revenue new text end 16.24 new text begin Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of the ARRA, new text end 16.25 new text begin must provide the notice of extended election rights which is required by subdivision new text end 16.26 new text begin 5a, paragraph (a), as well as any other notice that is required by the ARRA regarding new text end 16.27 new text begin the availability of premium reduction rights, to the individual within 30 days after the new text end 16.28 new text begin employer notifies the health carrier as required by paragraph (a). new text end 16.29 new text begin (c) The notice responsibilities set forth in this subdivision end when the premium new text end 16.30 new text begin reduction provisions under ARRA expire. new text end 16.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.1    Sec. 25. Minnesota Statutes 2008, section 62A.3099, subdivision 18, is amended to 17.2read: 17.3    Subd. 18. Medicare supplement policy or certificate. "Medicare supplement 17.4policy or certificate" means a group or individual policy of accident and sickness insurance 17.5or a subscriber contract of hospital and medical service associations or health maintenance 17.6organizations, other than those policies or certificates covered by section 1833 of the 17.7federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued 17.8policy under a demonstration project specified under amendments to the federal Social 17.9Security Act, which is advertised, marketed, or designed primarily as a supplement to 17.10reimbursements under Medicare for the hospital, medical, or surgical expenses of persons 17.11eligible for Medicare new text begin or as a supplement to Medicare Advantage Plans established under new text end 17.12 new text begin Medicare Part C new text end . "Medicare supplement policy" does not include Medicare Advantage 17.13plans established under Medicare Part C, outpatient prescription drug plans established 17.14under Medicare Part D, or any health care prepayment plan that provides benefits under an 17.15agreement under section 1833(a)(1)(A) of the Social Security Act. 17.16    Sec. 26. Minnesota Statutes 2008, section 62A.31, subdivision 1, is amended to read: 17.17    Subdivision 1. Policy requirements. No individual or group policy, certificate, 17.18subscriber contract issued by a health service plan corporation regulated under chapter 17.1962C, or other evidence of accident and health insurance the effect or purpose of which 17.20is to supplement Medicare coverage new text begin , including to supplement coverage under Medicare new text end 17.21 new text begin Advantage Plans established under Medicare Part C, new text end issued or delivered in this state 17.22or offered to a resident of this state shall be sold or issued to an individual covered by 17.23Medicare unless the requirements in subdivisions 1a to 1u are met. 17.24    Sec. 27. Minnesota Statutes 2008, section 62A.31, is amended by adding a subdivision 17.25to read: 17.26     new text begin Subd. 8. new text end new text begin Prohibition against use of genetic information and requests for genetic new text end 17.27 new text begin information. new text end new text begin This subdivision applies to all policies with policy years beginning on or new text end 17.28 new text begin after May 21, 2009. new text end 17.29     new text begin (a) An issuer of a Medicare supplement policy or certificate: new text end 17.30     new text begin (1) shall not deny or condition the issuance or effectiveness of the policy or new text end 17.31 new text begin certificate, including the imposition of any exclusion of benefits under the policy based new text end 17.32 new text begin on a preexisting condition, on the basis of the genetic information with respect to such new text end 17.33 new text begin individual; and new text end 18.1     new text begin (2) shall not discriminate in the pricing of the policy or certificate, including the new text end 18.2 new text begin adjustment of premium rates, of an individual on the basis of the genetic information new text end 18.3 new text begin with respect to such individual. new text end 18.4     new text begin (b) Nothing in paragraph (a) shall be construed to limit the ability of an issuer, to the new text end 18.5 new text begin extent otherwise permitted by law, from: new text end 18.6     new text begin (1) denying or conditioning the issuance or effectiveness of the policy or certificate new text end 18.7 new text begin or increasing the premium for a group based on the manifestation of a disease or disorder new text end 18.8 new text begin of an insured or applicant; or new text end 18.9     new text begin (2) increasing the premium for any policy issued to an individual based on the new text end 18.10 new text begin manifestation of a disease or disorder of an individual who is covered under the policy. new text end 18.11 new text begin In such case, the manifestation of a disease or disorder in one individual cannot also new text end 18.12 new text begin be used as genetic information about other group members and to further increase the new text end 18.13 new text begin premium for the group. new text end 18.14     new text begin (c) An issuer of a Medicare supplement policy or certificate shall not request or new text end 18.15 new text begin require an individual or a family member of such individual to undergo a genetic test. new text end 18.16     new text begin (d) Paragraph (c) shall not be construed to preclude an issuer of a Medicare new text end 18.17 new text begin supplement policy or certificate from obtaining and using the results of a genetic test in new text end 18.18 new text begin making a determination regarding payment, as defined for the purposes of applying the new text end 18.19 new text begin regulations promulgated under Part C of title XI and section 264 of the Health Insurance new text end 18.20 new text begin Portability and Accountability Act of 1996 as they may be revised from time to time, new text end 18.21 new text begin and consistent with paragraph (a). new text end 18.22     new text begin (e) For purposes of carrying out paragraph (d), an issuer of a Medicare supplement new text end 18.23 new text begin policy or certificate may request only the minimum amount of information necessary to new text end 18.24 new text begin accomplish the intended purpose. new text end 18.25     new text begin (f) Notwithstanding paragraph (c), an issuer of a Medicare supplement policy may new text end 18.26 new text begin request, but not require, that an individual or a family member of such individual undergo new text end 18.27 new text begin a genetic test if each of the following conditions are met: new text end 18.28     new text begin (1) The request is made pursuant to research that complies with Code of Federal new text end 18.29 new text begin Regulations title 45, part 46, or equivalent federal regulations, and any applicable state or new text end 18.30 new text begin local law or regulations for the protection of human subjects in research. new text end 18.31     new text begin (2) The issuer clearly indicates to each individual, or in the case of a minor child, to new text end 18.32 new text begin the legal guardian of such child, to whom the request is made that: new text end 18.33     new text begin (i) compliance with the request is voluntary; and new text end 18.34     new text begin (ii) noncompliance will have no effect on enrollment status or premium or new text end 18.35 new text begin contribution amounts. new text end 19.1     new text begin (3) No genetic information collected or acquired under this paragraph shall be used new text end 19.2 new text begin for underwriting, determination of eligibility to enroll or maintain enrollment status, new text end 19.3 new text begin premium rates, or the issuance, renewal, or replacement of a policy or certificate. new text end 19.4     new text begin (4) The issuer notifies the secretary in writing that the issuer is conducting activities new text end 19.5 new text begin pursuant to the exception provided for under this paragraph, including a description of new text end 19.6 new text begin the activities conducted. new text end 19.7     new text begin (5) The issuer complies with such other conditions as the secretary may by regulation new text end 19.8 new text begin require for activities under this paragraph. new text end 19.9     new text begin (g) An issuer of a Medicare supplement policy or certificate shall not request, new text end 19.10 new text begin require, or purchase genetic information for underwriting purposes. new text end 19.11     new text begin (h) An issuer of a Medicare supplement policy or certificate shall not request, new text end 19.12 new text begin require, or purchase genetic information with respect to any individual prior to such new text end 19.13 new text begin individual's enrollment under the policy in connection with such enrollment. new text end 19.14     new text begin (i) An issuer of a Medicare supplement policy or certificate that obtains genetic new text end 19.15 new text begin information incidental to the requesting, requiring, or purchasing of other information new text end 19.16 new text begin concerning any individual, such request, requirement, or purchase shall not be considered new text end 19.17 new text begin a violation of paragraph (h) if such request, requirement, or purchase is not in violation of new text end 19.18 new text begin paragraph (g). new text end 19.19     new text begin (j) For purposes of this subdivision only: new text end 19.20     new text begin (1) "Family member" means, with respect to an individual, any other individual who new text end 19.21 new text begin is a first-degree, second-degree, third-degree, or fourth-degree relative of such individual. new text end 19.22     new text begin (2) "Genetic information" means, with respect to any individual, information about new text end 19.23 new text begin such individual's genetic tests, the genetic test of family members of such individual, new text end 19.24 new text begin and the manifestation of a disease or disorder in family members of such individual. new text end 19.25 new text begin Such terms includes, with respect to any individual, any request for, or receipt of, genetic new text end 19.26 new text begin services, or participation in clinical research that includes genetic services, by such new text end 19.27 new text begin individual or any family member of such individual. Any reference to genetic information new text end 19.28 new text begin concerning an individual or family member of an individual who is a pregnant woman, new text end 19.29 new text begin includes genetic information of any fetus carried by such pregnant woman, or with respect new text end 19.30 new text begin to an individual or family member utilizing reproductive technology, includes genetic new text end 19.31 new text begin information of any embryo legally held by an individual or family member. The term new text end 19.32 new text begin genetic information does not include information about the sex or age of any individual. new text end 19.33     new text begin (3) "Genetic services" means a genetic test or genetic counseling, including new text end 19.34 new text begin obtaining, interpreting, or assessing genetic information or genetic education. new text end 19.35     new text begin (4) "Genetic test" means an analysis of human DNA, RNA, chromosomes, proteins, new text end 19.36 new text begin or metabolites, that detect genotypes, mutations, or chromosomal changes. The term new text end 20.1 new text begin genetic test does not mean an analysis of proteins or metabolites that does not detect new text end 20.2 new text begin genotypes, mutations, or chromosomal changes; or an analysis of proteins or metabolites new text end 20.3 new text begin that is directly related to a manifested disease, disorder, or pathological condition that new text end 20.4 new text begin could reasonably be detected by a health care professional with appropriate training and new text end 20.5 new text begin expertise in the field of medicine involved. new text end 20.6     new text begin (5) "Issuer of a Medicare supplement policy or certificate" includes a third-party new text end 20.7 new text begin administrator or other person acting for or on behalf of such issuer. new text end 20.8     new text begin (6) "Underwriting purposes" means: new text end 20.9     new text begin (i) rules for, or determination of, eligibility including enrollment and continued new text end 20.10 new text begin eligibility, for benefits under the policy; new text end 20.11     new text begin (ii) the computation of premium or contribution amounts under the policy; new text end 20.12     new text begin (iii) the application of any preexisting condition exclusion under the policy; and new text end 20.13     new text begin (iv) other activities related to the creation, renewal, or replacement of a contract of new text end 20.14 new text begin health insurance or health benefits. new text end 20.15    Sec. 28. Minnesota Statutes 2008, section 62A.315, is amended to read: 20.1662A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; 20.17COVERAGE. 20.18The extended basic Medicare supplement plan must have a level of coverage so that 20.19it will be certified as a qualified plan pursuant to section 62E.07, and will provide: 20.20(1) coverage for all of the Medicare Part A inpatient hospital deductible and 20.21coinsurance amounts, and 100 percent of all Medicare Part A eligible expenses for 20.22hospitalization not covered by Medicare; 20.23(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses 20.24for the calendar year incurred for skilled nursing facility care; 20.25(3) coverage for the coinsurance amount or in the case of hospital outpatient 20.26department services paid under a prospective payment system, the co-payment amount, of 20.27Medicare eligible expenses under Medicare Part B regardless of hospital confinement, and 20.28the Medicare Part B deductible amount; 20.29(4) 80 percent of the usual and customary hospital and medical expenses and 20.30supplies described in section 62E.06, subdivision 1, not to exceed any charge limitation 20.31established by the Medicare program or state law, the usual and customary hospital 20.32and medical expenses and supplies, described in section 62E.06, subdivision 1, while 20.33in a foreign country; and prescription drug expenses, not covered by Medicare. An 20.34outpatient prescription drug benefit must not be included for sale or issuance in a Medicare 20.35supplement policy or certificate issued on or after January 1, 2006; 21.1(5) coverage for the reasonable cost of the first three pints of blood, or equivalent 21.2quantities of packed red blood cells as defined under federal regulations under Medicare 21.3Parts A and B, unless replaced in accordance with federal regulations; 21.4(6) 100 percent of the cost of immunizations not otherwise covered under Part 21.5D of the Medicare program and routine screening procedures for cancer, including 21.6mammograms and pap smears; 21.7(7) preventive medical care benefit: coverage for the following preventive health 21.8services not covered by Medicare: 21.9(i) an annual clinical preventive medical history and physical examination that may 21.10include tests and services from clause (ii) and patient education to address preventive 21.11health care measures; 21.12(ii) preventive screening tests or preventive services, the selection and frequency of 21.13which is determined to be medically appropriate by the attending physician. 21.14Reimbursement shall be for the actual charges up to 100 percent of the 21.15Medicare-approved amount for each service as if Medicare were to cover the service as 21.16identified in American Medical Association current procedural terminology (AMA CPT) 21.17codes to a maximum of $120 annually under this benefit. This benefit shall not include 21.18payment for any procedure covered by Medicare; 21.19(8) at-home recovery benefit: coverage for services to provide short-term at-home 21.20assistance with activities of daily living for those recovering from an illness, injury, or 21.21surgery: 21.22(i) for purposes of this benefit, the following definitions shall apply: 21.23(A) "activities of daily living" include, but are not limited to, bathing, dressing, 21.24personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally 21.25self-administered, and changing bandages or other dressings; 21.26(B) "care provider" means a duly qualified or licensed home health aide/homemaker, 21.27personal care aide, or nurse provided through a licensed home health care agency or 21.28referred by a licensed referral agency or licensed nurses registry; 21.29(C) "home" means a place used by the insured as a place of residence, provided 21.30that the place would qualify as a residence for home health care services covered by 21.31Medicare. A hospital or skilled nursing facility shall not be considered the insured's 21.32place of residence; 21.33(D) "at-home recovery visit" means the period of a visit required to provide at-home 21.34recovery care, without limit on the duration of the visit, except each consecutive four 21.35hours in a 24-hour period of services provided by a care provider is one visit; 21.36(ii) coverage requirements and limitations: 22.1(A) at-home recovery services provided must be primarily services that assist in 22.2activities of daily living; 22.3(B) the insured's attending physician must certify that the specific type and frequency 22.4of at-home recovery services are necessary because of a condition for which a home care 22.5plan of treatment was approved by Medicare; 22.6(C) coverage is limited to: 22.7(I) no more than the number and type of at-home recovery visits certified as 22.8medically necessary by the insured's attending physician. The total number of at-home 22.9recovery visits shall not exceed the number of Medicare-approved home health care visits 22.10under a Medicare-approved home care plan of treatment; 22.11(II) the actual charges for each visit up to a maximum reimbursement of $100 per 22.12visit; 22.13(III) $4,000 per calendar year; 22.14(IV) seven visits in any one week; 22.15(V) care furnished on a visiting basis in the insured's home; 22.16(VI) services provided by a care provider as defined in this section; 22.17(VII) at-home recovery visits while the insured is covered under the policy or 22.18certificate and not otherwise excluded; 22.19(VIII) at-home recovery visits received during the period the insured is receiving 22.20Medicare-approved home care services or no more than eight weeks after the service date 22.21of the last Medicare-approved home health care visit; 22.22(iii) coverage is excluded for: 22.23(A) home care visits paid for by Medicare or other government programs; and 22.24(B) care provided by unpaid volunteers or providers who are not care providers. 22.25 new text begin (8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite new text end 22.26 new text begin care expenses; and new text end 22.27 new text begin (9) coverage for cost sharing for Medicare Part A or B home health care services new text end 22.28 new text begin and medical supplies. new text end 22.29    Sec. 29. Minnesota Statutes 2008, section 62A.316, is amended to read: 22.3062A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE. 22.31(a) The basic Medicare supplement plan must have a level of coverage that will 22.32provide: 22.33(1) coverage for all of the Medicare Part A inpatient hospital coinsurance amounts, 22.34and 100 percent of all Medicare part A eligible expenses for hospitalization not covered 22.35by Medicare, after satisfying the Medicare Part A deductible; 23.1(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses 23.2for the calendar year incurred for skilled nursing facility care; 23.3(3) coverage for the coinsurance amount, or in the case of outpatient department 23.4services paid under a prospective payment system, the co-payment amount, of Medicare 23.5eligible expenses under Medicare Part B regardless of hospital confinement, subject to 23.6the Medicare Part B deductible amount; 23.7(4) 80 percent of the hospital and medical expenses and supplies incurred during 23.8travel outside the United States as a result of a medical emergency; 23.9(5) coverage for the reasonable cost of the first three pints of blood, or equivalent 23.10quantities of packed red blood cells as defined under federal regulations under Medicare 23.11Parts A and B, unless replaced in accordance with federal regulations; 23.12(6) 100 percent of the cost of immunizations not otherwise covered under Part D of 23.13the Medicare program and routine screening procedures for cancer screening including 23.14mammograms and pap smears; and 23.15(7) 80 percent of coverage for all physician prescribed medically appropriate and 23.16necessary equipment and supplies used in the management and treatment of diabetes 23.17not otherwise covered under Part D of the Medicare program. Coverage must include 23.18persons with gestational, type I, or type II diabetes. Coverage under this clause is subject 23.19to section 62A.3093, subdivision 2. new text begin ; new text end 23.20 new text begin (8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite new text end 23.21 new text begin care expenses; and new text end 23.22 new text begin (9) coverage for cost sharing for Medicare Part A or B home health care services and new text end 23.23 new text begin medical supplies subject to the Medicare Part B deductible amount. new text end 23.24(b) Only The following optional benefit riders may be added to new text begin must be offered new text end 23.25 new text begin with new text end this plan: 23.26(1) coverage for all of the Medicare Part A inpatient hospital deductible amount; 23.27(2) a minimum of 80 percent of eligible medical expenses and supplies not covered 23.28by Medicare Part B new text begin 100 percent of the Medicare Part B excess charges coverage for new text end 23.29 new text begin all of the difference between the actual Medicare Part B charges as billed new text end , not to 23.30exceed any charge limitation established by the Medicare program or state law new text begin , and the new text end 23.31 new text begin Medicare-approved Part B charge new text end ; 23.32(3) coverage for all of the Medicare Part B annual deductible; new text begin and new text end 23.33(4) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and 23.34customary prescription drug expenses. An outpatient prescription drug benefit must not 23.35be included for sale or issuance in a Medicare policy or certificate issued on or after 23.36January 1, 2006; 24.1    (5) new text begin (4) new text end preventive medical care benefit coverage for the following preventative 24.2health services not covered by Medicare: 24.3(i) an annual clinical preventive medical history and physical examination that may 24.4include tests and services from clause (ii) and patient education to address preventive 24.5health care measures; 24.6(ii) preventive screening tests or preventive services, the selection and frequency of 24.7which is determined to be medically appropriate by the attending physician. 24.8Reimbursement shall be for the actual charges up to 100 percent of the 24.9Medicare-approved amount for each service, as if Medicare were to cover the service as 24.10identified in American Medical Association current procedural terminology (AMA CPT) 24.11codes, to a maximum of $120 annually under this benefit. This benefit shall not include 24.12payment for a procedure covered by Medicare; new text begin . new text end 24.13(6) coverage for services to provide short-term at-home assistance with activities of 24.14daily living for those recovering from an illness, injury, or surgery: 24.15(i) For purposes of this benefit, the following definitions apply: 24.16(A) "activities of daily living" include, but are not limited to, bathing, dressing, 24.17personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally 24.18self-administered, and changing bandages or other dressings; 24.19(B) "care provider" means a duly qualified or licensed home health aide/homemaker, 24.20personal care aid, or nurse provided through a licensed home health care agency or 24.21referred by a licensed referral agency or licensed nurses registry; 24.22(C) "home" means a place used by the insured as a place of residence, provided 24.23that the place would qualify as a residence for home health care services covered by 24.24Medicare. A hospital or skilled nursing facility shall not be considered the insured's 24.25place of residence; 24.26(D) "at-home recovery visit" means the period of a visit required to provide at-home 24.27recovery care, without limit on the duration of the visit, except each consecutive four 24.28hours in a 24-hour period of services provided by a care provider is one visit; 24.29(ii) Coverage requirements and limitations: 24.30(A) at-home recovery services provided must be primarily services that assist in 24.31activities of daily living; 24.32(B) the insured's attending physician must certify that the specific type and frequency 24.33of at-home recovery services are necessary because of a condition for which a home care 24.34plan of treatment was approved by Medicare; 24.35(C) coverage is limited to: 25.1(I) no more than the number and type of at-home recovery visits certified as 25.2necessary by the insured's attending physician. The total number of at-home recovery 25.3visits shall not exceed the number of Medicare-approved home care visits under a 25.4Medicare-approved home care plan of treatment; 25.5(II) the actual charges for each visit up to a maximum reimbursement of $40 per visit; 25.6(III) $1,600 per calendar year; 25.7(IV) seven visits in any one week; 25.8(V) care furnished on a visiting basis in the insured's home; 25.9(VI) services provided by a care provider as defined in this section; 25.10(VII) at-home recovery visits while the insured is covered under the policy or 25.11certificate and not otherwise excluded; 25.12(VIII) at-home recovery visits received during the period the insured is receiving 25.13Medicare-approved home care services or no more than eight weeks after the service date 25.14of the last Medicare-approved home health care visit; 25.15(iii) Coverage is excluded for: 25.16(A) home care visits paid for by Medicare or other government programs; and 25.17(B) care provided by family members, unpaid volunteers, or providers who are 25.18not care providers; 25.19(7) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and 25.20customary prescription drug expenses to a maximum of $1,200 paid by the issuer annually 25.21under this benefit. An issuer of Medicare supplement insurance policies that elects to 25.22offer this benefit rider shall also make available coverage that contains the rider specified 25.23in clause (4). An outpatient prescription drug benefit must not be included for sale or 25.24issuance in a Medicare policy or certificate issued on or after January 1, 2006. 25.25    Sec. 30. new text begin [62A.3163] MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT new text end 25.26 new text begin PART A DEDUCTIBLE COVERAGE. new text end 25.27 new text begin The Medicare supplement plan with 50 percent Part A deductible coverage must new text end 25.28 new text begin have a level of coverage that will provide: new text end 25.29 new text begin (1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for new text end 25.30 new text begin 365 days after Medicare benefits end; new text end 25.31 new text begin (2) coverage for 50 percent of the Medicare Part A inpatient hospital deductible new text end 25.32 new text begin amount per benefit period; new text end 25.33 new text begin (3) coverage for the coinsurance amount for each day used from the 21st through new text end 25.34 new text begin the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible new text end 25.35 new text begin under Medicare Part A; new text end 26.1 new text begin (4) coverage for cost sharing for all Medicare Part A eligible hospice and respite new text end 26.2 new text begin care expenses; new text end 26.3 new text begin (5) coverage under Medicare Part A or B for the reasonable cost of the first three new text end 26.4 new text begin pints of blood, or equivalent quantities of packed red blood cells, as defined under federal new text end 26.5 new text begin regulations; new text end 26.6 new text begin (6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare new text end 26.7 new text begin Part B, after the policyholder pays the Medicare Part B deductible; new text end 26.8 new text begin (7) coverage of 100 percent of the cost sharing for Medicare Part B preventive new text end 26.9 new text begin services and diagnostic procedures for cancer screening described in section 62A.30 after new text end 26.10 new text begin the policyholder pays the Medicare Part B deductible; new text end 26.11 new text begin (8) coverage of 80 percent of the hospital and medical expenses and supplies new text end 26.12 new text begin incurred during travel outside of the United States as a result of a medical emergency; and new text end 26.13 new text begin (9) coverage for 100 percent of the Medicare Part A or B home health care services new text end 26.14 new text begin and medical supplies after the policyholder pays the Medicare Part B deductible. new text end 26.15    Sec. 31. new text begin [62A.3164] MEDICARE SUPPLEMENT PLAN WITH $20 AND $50 new text end 26.16 new text begin CO-PAYMENT MEDICARE PART B COVERAGE. new text end 26.17 new text begin The Medicare supplement plan with $20 and $50 co-payment Medicare Part B new text end 26.18 new text begin coverage must have a level of coverage that will provide: new text end 26.19 new text begin (1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for new text end 26.20 new text begin 365 days after Medicare benefits end; new text end 26.21 new text begin (2) coverage for the Medicare Part A inpatient hospital deductible amount per new text end 26.22 new text begin benefit period; new text end 26.23 new text begin (3) coverage for the coinsurance amount for each day used from the 21st through new text end 26.24 new text begin the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible new text end 26.25 new text begin under Medicare Part A; new text end 26.26 new text begin (4) coverage for the cost sharing for all Medicare Part A eligible hospice and respite new text end 26.27 new text begin care expenses; new text end 26.28 new text begin (5) coverage for Medicare Part A or B of the reasonable cost of the first three pints new text end 26.29 new text begin of blood, or equivalent quantities of packed red blood cells, as defined under federal new text end 26.30 new text begin regulations, unless replaced according to federal regulations; new text end 26.31 new text begin (6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare new text end 26.32 new text begin Part B except for the lesser of $20 or the Medicare Part B coinsurance or co-payment new text end 26.33 new text begin for each covered health care provider office visit and the lesser of $50 or the Medicare new text end 26.34 new text begin Part B coinsurance or co-payment for each covered emergency room visit; however, this new text end 27.1 new text begin co-payment shall be waived if the insured is admitted to any hospital and the emergency new text end 27.2 new text begin visit is subsequently covered as a Medicare Part A expense; new text end 27.3 new text begin (7) coverage of 100 percent of the cost sharing for Medicare Part B preventive new text end 27.4 new text begin services and diagnostic procedures for cancer screening described in section 62A.30 after new text end 27.5 new text begin the policyholder pays the Medicare Part B deductible; new text end 27.6 new text begin (8) coverage of 80 percent of the hospital and medical expenses and supplies new text end 27.7 new text begin incurred during travel outside of the United States as a result of a medical emergency; and new text end 27.8 new text begin (9) coverage for Medicare Part A or B home health care services and medical new text end 27.9 new text begin supplies after the policyholder pays the Medicare Part B deductible. new text end 27.10    Sec. 32. new text begin [62A.3165] MEDICARE SUPPLEMENT PLAN WITH HIGH new text end 27.11 new text begin DEDUCTIBLE COVERAGE. new text end 27.12 new text begin The Medicare supplement plan will pay 100 percent coverage upon payment of the new text end 27.13 new text begin annual high deductible. The annual deductible shall consist of out-of-pocket expenses, new text end 27.14 new text begin other than premiums, for services covered. This plan must have a level of coverage that new text end 27.15 new text begin will provide: new text end 27.16 new text begin (1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for new text end 27.17 new text begin 365 days after Medicare benefits end; new text end 27.18 new text begin (2) coverage for 100 percent of the Medicare Part A inpatient hospital deductible new text end 27.19 new text begin amount per benefit period; new text end 27.20 new text begin (3) coverage for 100 percent of the coinsurance amount for each day used from the new text end 27.21 new text begin 21st through the 100th day in a Medicare benefit period for post-hospital skilled nursing new text end 27.22 new text begin care eligible under Medicare Part A; new text end 27.23 new text begin (4) coverage for 100 percent of cost sharing for all Medicare Part A eligible new text end 27.24 new text begin expenses and respite care; new text end 27.25 new text begin (5) coverage for 100 percent, under Medicare Part A or B, of the reasonable cost of new text end 27.26 new text begin the first three pints of blood, or equivalent quantities of packed red blood cells, as defined new text end 27.27 new text begin under federal regulations, unless replaced according to federal regulations; new text end 27.28 new text begin (6) except for coverage provided in this clause, coverage for 100 percent of the cost new text end 27.29 new text begin sharing otherwise applicable under Medicare Part B; new text end 27.30 new text begin (7) coverage of 100 percent of the cost sharing for Medicare Part B preventive new text end 27.31 new text begin services and diagnostic procedures for cancer screening described in section 62A.30 after new text end 27.32 new text begin the policyholder pays the Medicare Part B deductible; new text end 27.33 new text begin (8) coverage of 100 percent of the hospital and medical expenses and supplies new text end 27.34 new text begin incurred during travel outside of the United States as a result of a medical emergency; new text end 28.1 new text begin (9) coverage for 100 percent of Medicare Part A and B home health care services new text end 28.2 new text begin and medical supplies; and new text end 28.3 new text begin (10) the basis for the deductible shall be $1,860 and shall be adjusted annually from new text end 28.4 new text begin 2010 by the secretary of the United States Department of Health and Human Services to new text end 28.5 new text begin reflect the change in the Consumer Price Index for all urban consumers for the 12-month new text end 28.6 new text begin period ending with August of the preceding year, and rounded to the nearest multiple of new text end 28.7 new text begin $10. new text end 28.8    Sec. 33. Minnesota Statutes 2008, section 62L.02, subdivision 26, is amended to read: 28.9    Subd. 26. Small employer. (a) "Small employer" means, with respect to a calendar 28.10year and a plan year, a person, firm, corporation, partnership, association, or other entity 28.11actively engaged in business new text begin in Minnesota new text end , including a political subdivision of the state, 28.12that employed an average of no fewer than two nor more than 50 current employees on 28.13business days during the preceding calendar year and that employs at least two current 28.14employees on the first day of the plan year. If an employer has only one eligible employee 28.15who has not waived coverage, the sale of a health plan to or for that eligible employee 28.16is not a sale to a small employer and is not subject to this chapter and may be treated as 28.17the sale of an individual health plan. A small employer plan may be offered through a 28.18domiciled association to self-employed individuals and small employers who are members 28.19of the association, even if the self-employed individual or small employer has fewer than 28.20two current employees. Entities that are treated as a single employer under subsection (b), 28.21(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single 28.22employer for purposes of determining the number of current employees. Small employer 28.23status must be determined on an annual basis as of the renewal date of the health benefit 28.24plan. The provisions of this chapter continue to apply to an employer who no longer meets 28.25the requirements of this definition until the annual renewal date of the employer's health 28.26benefit plan. If an employer was not in existence throughout the preceding calendar year, 28.27the determination of whether the employer is a small employer is based upon the average 28.28number of current employees that it is reasonably expected that the employer will employ 28.29on business days in the current calendar year. For purposes of this definition, the term 28.30employer includes any predecessor of the employer. An employer that has more than 50 28.31current employees but has 50 or fewer employees, as "employee" is defined under United 28.32States Code, title 29, section 1002(6), is a small employer under this subdivision. 28.33(b) Where an association, as defined in section 62L.045, comprised of employers 28.34contracts with a health carrier to provide coverage to its members who are small employers, 28.35the association and health benefit plans it provides to small employers, are subject to 29.1section 62L.045, with respect to small employers in the association, even though the 29.2association also provides coverage to its members that do not qualify as small employers. 29.3(c) If an employer has employees covered under a trust specified in a collective 29.4bargaining agreement under the federal Labor-Management Relations Act of 1947, 29.5United States Code, title 29, section 141, et seq., as amended, or employees whose health 29.6coverage is determined by a collective bargaining agreement and, as a result of the 29.7collective bargaining agreement, is purchased separately from the health plan provided 29.8to other employees, those employees are excluded in determining whether the employer 29.9qualifies as a small employer. Those employees are considered to be a separate small 29.10employer if they constitute a group that would qualify as a small employer in the absence 29.11of the employees who are not subject to the collective bargaining agreement. 29.12    Sec. 34. Minnesota Statutes 2008, section 62M.05, subdivision 3a, is amended to read: 29.13    Subd. 3a. Standard review determination. (a) Notwithstanding subdivision 3b, an 29.14initial determination on all requests for utilization review must be communicated to the 29.15provider and enrollee in accordance with this subdivision within ten business days of the 29.16request, provided that all information reasonably necessary to make a determination on the 29.17request has been made available to the utilization review organization. 29.18(b) When an initial determination is made to certify, notification must be provided 29.19promptly by telephone to the provider. The utilization review organization shall send 29.20written notification to the provider or shall maintain an audit trail of the determination 29.21and telephone notification. For purposes of this subdivision, "audit trail" includes 29.22documentation of the telephone notification, including the date; the name of the person 29.23spoken to; the enrollee; the service, procedure, or admission certified; and the date of 29.24the service, procedure, or admission. If the utilization review organization indicates 29.25certification by use of a number, the number must be called the "certification number." new text begin new text end 29.26 new text begin For purposes of this subdivision, notification may also be made by facsimile to a verified new text end 29.27 new text begin number or by electronic mail to a secure electronic mailbox. These electronic forms of new text end 29.28 new text begin notification satisfy the "audit trail" requirement of this paragraph. new text end 29.29(c) When an initial determination is made not to certify, notification must be 29.30provided by telephone new text begin , by facsimile to a verified number, or by electronic mail to a new text end 29.31 new text begin secure electronic mailbox new text end within one working day after making the determination to 29.32the attending health care professional and hospital and a written new text begin as applicable. Written new text end 29.33notification must new text begin also new text end be sent to the hospital, new text begin as applicable and new text end attending health care 29.34professional, and enrollee new text begin if notification occurred by telephone new text end . new text begin For purposes of this new text end 29.35 new text begin subdivision, notification may be made by facsimile to a verified number or by electronic new text end 30.1 new text begin mail to a secure electronic mailbox. Written notification must be sent to the enrollee and new text end 30.2 new text begin may be sent by United States mail, facsimile to a verified number, or by electronic mail to new text end 30.3 new text begin a secure mailbox. new text end The written notification must include the principal reason or reasons 30.4for the determination and the process for initiating an appeal of the determination. Upon 30.5request, the utilization review organization shall provide the provider or enrollee with the 30.6criteria used to determine the necessity, appropriateness, and efficacy of the health care 30.7service and identify the database, professional treatment parameter, or other basis for the 30.8criteria. Reasons for a determination not to certify may include, among other things, 30.9the lack of adequate information to certify after a reasonable attempt has been made to 30.10contact the provider or enrollee. 30.11(d) When an initial determination is made not to certify, the written notification must 30.12inform the enrollee and the attending health care professional of the right to submit an 30.13appeal to the internal appeal process described in section 62M.06 and the procedure 30.14for initiating the internal appeal. 30.15    Sec. 35. Minnesota Statutes 2008, section 65A.27, subdivision 1, is amended to read: 30.16    Subdivision 1. Scope. For purposes of sections 65A.27 to new text begin 65A.302, new text end the 30.17following terms have the meanings given. 30.18    Sec. 36. Minnesota Statutes 2008, section 65A.29, is amended by adding a subdivision 30.19to read: 30.20     new text begin Subd. 13. new text end new text begin Notice of possible cancellation. new text end new text begin (a) A written notice must be new text end 30.21 new text begin provided to all applicants for homeowners' insurance, at the time the application is new text end 30.22 new text begin submitted, containing the following language in bold print: "THE INSURER MAY new text end 30.23 new text begin ELECT TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 60 DAYS new text end 30.24 new text begin FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS new text end 30.25 new text begin NOT SPECIFICALLY PROHIBITED BY STATUTE." new text end 30.26 new text begin (b) If the insurer provides the notice on the insurer's Web site, the insurer or agent new text end 30.27 new text begin may advise the applicant orally or in writing of its availability for review on the insurer's new text end 30.28 new text begin Web site in lieu of providing a written notice, if the insurer advises the applicant of the new text end 30.29 new text begin availability of a written notice upon the applicant's request. The insurer shall provide the new text end 30.30 new text begin notice in writing if requested by the applicant. An oral notice shall be presumed delivered new text end 30.31 new text begin if the agent or insurer makes a contemporaneous notation in the applicant's record of new text end 30.32 new text begin the notice having been delivered or if the insurer or agent retains an audio recording of new text end 30.33 new text begin the notification provided to the applicant. new text end 30.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 31.1    Sec. 37. Minnesota Statutes 2008, section 65B.133, subdivision 2, is amended to read: 31.2    Subd. 2. Disclosure to applicants. Before accepting the initial premium payment, 31.3an insurer or its agent shall provide a surcharge disclosure statement to any person who 31.4applies for a policy which is effective on or after January 1, 1983. new text begin If the insurer provides new text end 31.5 new text begin the surcharge disclosure statement on the insurer's website, the insurer or agent may notify new text end 31.6 new text begin the applicant orally or in writing of its availability for review on the insurer's website new text end 31.7 new text begin prior to accepting the initial payment, in lieu of providing a disclosure statement to the new text end 31.8 new text begin applicant in writing, if the insurer so notifies the applicant of the availability of a written new text end 31.9 new text begin version of this statement upon the applicant's request. The insurer shall provide the new text end 31.10 new text begin surcharge disclosure statement in writing if requested by the applicant. An oral notice new text end 31.11 new text begin shall be presumed delivered if the agent or insurer makes a contemporaneous notation in new text end 31.12 new text begin the applicant's record of the notice having been delivered or if the insurer or agent retains new text end 31.13 new text begin an audio recording of the notification provided to the applicant. new text end 31.14    Sec. 38. Minnesota Statutes 2008, section 65B.133, subdivision 3, is amended to read: 31.15    Subd. 3. Disclosure to policyholders. An insurer or its agent shall mail or deliver 31.16a surcharge disclosure statement new text begin or written notice of the statement's availability on the new text end 31.17 new text begin insurer's website new text end to the named insured either before or with the first notice to renew a 31.18policy on or after January 1, 1983. If a surcharge disclosure statement new text begin or written website new text end 31.19 new text begin notice new text end has been provided pursuant to subdivision 2, no surcharge disclosure statement is 31.20required to be mailed or delivered to the same named insured pursuant to subdivision 3. 31.21    Sec. 39. Minnesota Statutes 2008, section 65B.133, subdivision 4, is amended to read: 31.22    Subd. 4. Notification of change. No insurer may change its surcharge plan unless 31.23a surcharge disclosure statement new text begin or written website notice new text end is mailed or delivered to the 31.24named insured before the change is made. A surcharge disclosure statement disclosing a 31.25change applicable on the renewal of a policy, may be mailed with an offer to renew the 31.26policy. Surcharges cannot be applied to accidents or traffic violations that occurred prior 31.27to a change in a surcharge plan except to the extent provided under the prior plan. 31.28    Sec. 40. Minnesota Statutes 2008, section 65B.54, subdivision 1, is amended to read: 31.29    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss 31.30benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as 31.31income loss, replacement services loss, survivor's economic loss, survivor's replacement 31.32services loss, or medical or funeral expense is incurred. Benefits are overdue if not 31.33paid within 30 days after the reparation obligor receives reasonable proof of the fact 32.1and amount of loss realized, unless the reparation obligor elects to accumulate claims 32.2for periods not exceeding 31 days and pays them within 15 days after the period of 32.3accumulation. If reasonable proof is supplied as to only part of a claim, and the part 32.4totals $100 or more, the part is overdue if not paid within the time provided by this 32.5section. Medical or funeral expense benefits may be paid by the reparation obligor 32.6directly to persons supplying products, services, or accommodations to the claimant. new text begin new text end 32.7 new text begin Claims by a health provider defined in section 62J.03, subdivision 8, for medical expense new text end 32.8 new text begin benefits covered by this chapter shall be submitted to the reparation obligor pursuant to new text end 32.9 new text begin the uniform electronic transaction standards required by section 62J.536 and the rules new text end 32.10 new text begin promulgated under that section. Payment of benefits for such claims for medical expense new text end 32.11 new text begin benefits are not due if the claim is not received by the reparation obligor pursuant to new text end 32.12 new text begin those electronic transaction standards and rules. Notwithstanding any such submission, new text end 32.13 new text begin a reparation obligor may require additional reasonable proof regarding the fact and the new text end 32.14 new text begin amount of loss realized regarding such a claim. A health care provider cannot directly new text end 32.15 new text begin bill an insured for the amount of any such claim not remitted pursuant to the transaction new text end 32.16 new text begin standards required by section 62J.536 if the reparation obligor is acting in compliance new text end 32.17 new text begin with these standards in receiving or paying such a claim. new text end 32.18    Sec. 41. Minnesota Statutes 2008, section 67A.191, subdivision 2, is amended to read: 32.19    Subd. 2. Homeowner's risks. A township mutual fire insurance company may issue 32.20policies known as "homeowner's insurance" as defined in section 65A.27, subdivision 32.214 , only in combination with a policy issued by an insurer authorized to sell property 32.22and casualty insurance in this state. All portions of the combination policy providing 32.23homeowner's insurance, including those issued by a township mutual insurance company, 32.24shall be new text begin are new text end subject to the provisions of chapter 65A new text begin and sections 72A.20 and 72A.201 new text end . 32.25    Sec. 42. Minnesota Statutes 2008, section 72A.20, subdivision 15, is amended to read: 32.26    Subd. 15. Practices not held to be discrimination or rebates. Nothing in 32.27subdivision 8, 9, or 10, or in section 72A.12, subdivisions 3 and 4, shall be construed as 32.28including within the definition of discrimination or rebates any of the following practices: 32.29(1) in the case of any contract of life insurance or annuity, paying bonuses to 32.30policyholders or otherwise abating their premiums in whole or in part out of surplus 32.31accumulated from nonparticipating insurance, provided that any bonuses or abatement 32.32of premiums shall be fair and equitable to policyholders and for the best interests of the 32.33company and its policyholders; 33.1(2) in the case of life insurance policies issued on the industrial debit plan, making 33.2allowance, to policyholders who have continuously for a specified period made premium 33.3payments directly to an office of the insurer, in an amount which fairly represents the 33.4saving in collection expense; 33.5(3) readjustment of the rate of premium for a group insurance policy based on the 33.6loss or expense experienced thereunder, at the end of the first or any subsequent policy 33.7year of insurance thereunder, which may be made retroactive only for such policy year; 33.8(4) in the case of an individual or group health insurance policy, the payment of 33.9differing amounts of reimbursement to insureds who elect to receive health care goods 33.10or services from providers designated by the insurer, provided that each insurer shall on 33.11or before August 1 of each year file with the commissioner summary data regarding the 33.12financial reimbursement offered to providers so designated. new text begin ; and new text end 33.13Any insurer which proposes to offer an arrangement authorized under this clause 33.14shall disclose prior to its initial offering and on or before August 1 of each year thereafter 33.15as a supplement to its annual statement submitted to the commissioner pursuant to section 33.1660A.13, subdivision 1, the following information: 33.17(a) the name which the arrangement intends to use and its business address; 33.18(b) the name, address, and nature of any separate organization which administers the 33.19arrangement on the behalf of the insurers; and 33.20(c) the names and addresses of all providers designated by the insurer under this 33.21clause and the terms of the agreements with designated health care providers. 33.22The commissioner shall maintain a record of arrangements proposed under this 33.23clause, including a record of any complaints submitted relative to the arrangements. 33.24     new text begin (5) in the case of an individual or group health insurance policy, offering incentives new text end 33.25 new text begin to individuals for taking part in preventive health care services, medical management new text end 33.26 new text begin incentive programs, or activities designed to improve the health of the individual. new text end 33.27If the commissioner requests copies of contracts with a provider under this clause new text begin (4) new text end 33.28and the provider requests a determination, all information contained in the contracts that 33.29the commissioner determines may place the provider or health care plan at a competitive 33.30disadvantage is nonpublic data. 33.31    Sec. 43. Minnesota Statutes 2008, section 72A.20, subdivision 26, is amended to read: 33.32    Subd. 26. Loss experience. An insurer shall without cost to the insured provide an 33.33insured with the loss or claims experience of that insured for the current policy period and 33.34for the two policy periods preceding the current one for which the insurer has provided 33.35coverage, within 30 days of a request for the information by the policyholder. new text begin Whenever new text end 34.1 new text begin reporting loss experience data, actual claims paid on behalf of the insured must be reported new text end 34.2 new text begin separately from claims incurred but not paid, pooling charges for catastrophic claim new text end 34.3 new text begin protection, and any other administrative fees or charges that may be charged as an incurred new text end 34.4 new text begin claim expense. new text end Claims experience data must be provided to the insured in accordance with 34.5state and federal requirements regarding the confidentiality of medical data. The insurer 34.6shall not be responsible for providing information without cost more often than once in 34.7a 12-month period. The insurer is not required to provide the information if the policy 34.8covers the employee of more than one employer and the information is not maintained 34.9separately for each employer and not all employers request the data. 34.10    An insurer, health maintenance organization, or a third-party administrator may not 34.11request more than three years of loss or claims experience as a condition of submitting an 34.12application or providing coverage. 34.13    This subdivision only applies to group life policies and group health policies. 34.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for policy renewal proposals new text end 34.15 new text begin delivered on or after August 1, 2010. new text end 34.16    Sec. 44. Minnesota Statutes 2008, section 72A.201, is amended by adding a 34.17subdivision to read: 34.18     new text begin Subd. 14. new text end new text begin Uniform electronic transaction standards. new text end new text begin Claims for medical new text end 34.19 new text begin expenses under a property and casualty insurance policy subject to the uniform electronic new text end 34.20 new text begin transaction standards required by section 62J.536 shall be submitted to an insurer by a new text end 34.21 new text begin health care provider subject to that section pursuant to the uniform electronic transaction new text end 34.22 new text begin standards and rules promulgated under that section. The exchange of information related new text end 34.23 new text begin to such claims pursuant to the electronic transaction standards by an insurer shall not be new text end 34.24 new text begin the sole basis for a finding that the insurer is not in compliance with the requirements of new text end 34.25 new text begin this section, section 72A.20, and any rules promulgated under these sections. new text end 34.26    Sec. 45. new text begin [72A.204] PROHIBITED USES OF SENIOR-SPECIFIC new text end 34.27 new text begin CERTIFICATIONS AND PROFESSIONAL DESIGNATIONS. new text end 34.28     new text begin Subdivision 1. new text end new text begin Purpose and scope. new text end new text begin The purpose of this section is to set forth new text end 34.29 new text begin standards to protect consumers from misleading and fraudulent marketing practices with new text end 34.30 new text begin respect to the use of senior-specific certifications and professional designations in: new text end 34.31 new text begin (1) the solicitation, sale, or purchase of a life insurance or annuity product; or new text end 34.32 new text begin (2) the provision of advice in connection with the solicitation, sale, or purchase of a new text end 34.33 new text begin life insurance or annuity product. new text end 35.1     new text begin Subd. 2. new text end new text begin Insurance producer. new text end new text begin For purposes of this section, "insurance producer" new text end 35.2 new text begin means a person required to be licensed under the laws of this state to sell, solicit, or new text end 35.3 new text begin negotiate insurance, including annuities. new text end 35.4     new text begin Subd. 3. new text end new text begin Prohibited uses of senior-specific certifications and professional new text end 35.5 new text begin designations. new text end new text begin (a) It is an unfair and deceptive act or practice in the business of insurance new text end 35.6 new text begin for an insurance producer to use a senior-specific certification or professional designation new text end 35.7 new text begin that indicates or implies in such a way as to mislead a client or prospective client that the new text end 35.8 new text begin insurance producer has special certification or training in advising or servicing seniors in new text end 35.9 new text begin connection with the solicitation, sale, or purchase of a life insurance or annuity product or new text end 35.10 new text begin in the provision of advice as to the value of or the advisability of purchasing or selling a new text end 35.11 new text begin life insurance or annuity product, either directly or indirectly, including the provision of new text end 35.12 new text begin advice through publications or writings or by issuing or promulgating analyses or reports new text end 35.13 new text begin related to a life insurance or annuity product. new text end 35.14 new text begin (b) The prohibited use of senior-specific certifications or professional designations new text end 35.15 new text begin includes, but is not limited to, the following: new text end 35.16 new text begin (1) use of a certification or professional designation by an insurance producer who new text end 35.17 new text begin has not actually earned or is otherwise ineligible to use such certification or designation; new text end 35.18 new text begin (2) use of a nonexistent or self-conferred certification or professional designation; new text end 35.19 new text begin (3) use of a certification or professional designation that indicates or implies a level new text end 35.20 new text begin of occupational qualifications obtained through education, training, or experience that the new text end 35.21 new text begin insurance producer using the certification or designation does not have; and new text end 35.22 new text begin (4) use of a certification or professional designation that was obtained from a new text end 35.23 new text begin certifying or designating organization that: new text end 35.24 new text begin (i) is primarily engaged in the business of instruction in sales or marketing; new text end 35.25 new text begin (ii) does not have reasonable standards or procedures for ensuring the competency of new text end 35.26 new text begin its certificants or designees; new text end 35.27 new text begin (iii) does not have reasonable standards or procedures for monitoring and new text end 35.28 new text begin disciplining its certificants or designees for improper or unethical conduct; or new text end 35.29 new text begin (iv) does not have reasonable continuing education requirements for its certificants new text end 35.30 new text begin or designees in order to maintain the certificate or designation. new text end 35.31 new text begin (c) There is a rebuttable presumption that a certifying or designating organization is new text end 35.32 new text begin not disqualified solely for the purposes of paragraph (b), clause (4), when the certification new text end 35.33 new text begin or designation issued from the organization does not primarily apply to sales or marketing new text end 35.34 new text begin and when the organization or the certification or designation in question has been new text end 35.35 new text begin accredited by: new text end 35.36 new text begin (1) the American National Standards Institute (ANSI); new text end 36.1 new text begin (2) the National Commission for Certifying Agencies; or new text end 36.2 new text begin (3) any organization that is on the United States Department of Education list new text end 36.3 new text begin entitled "Accrediting Agencies Recognized for Title IV Purposes." new text end 36.4 new text begin (d) In determining whether a combination of words or an acronym standing for a new text end 36.5 new text begin combination of words constitutes a certification or professional designation indicating or new text end 36.6 new text begin implying that a person has special certification or training in advising or servicing seniors, new text end 36.7 new text begin factors to be considered must include: new text end 36.8 new text begin (1) use of one or more words such as "senior," "retirement," "elder," or like words new text end 36.9 new text begin combined with one or more words such as "certified," "registered," "chartered," "adviser," new text end 36.10 new text begin "specialist," "consultant," "planner," or like words, in the name of the certification or new text end 36.11 new text begin professional designation; and new text end 36.12 new text begin (2) the manner in which those words are combined. new text end 36.13 new text begin (e) For purposes of this section, a job title within an organization that is licensed or new text end 36.14 new text begin registered by a state or federal financial services regulatory agency is not a certification or new text end 36.15 new text begin professional designation, unless it is used in a manner that would confuse or mislead a new text end 36.16 new text begin reasonable consumer, when the job title: new text end 36.17 new text begin (1) indicates seniority or standing within the organization; or new text end 36.18 new text begin (2) specifies an individual's area of specialization within the organization. new text end 36.19 new text begin (f) For purposes of paragraph (e), "financial services regulatory agency" includes, new text end 36.20 new text begin but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers, new text end 36.21 new text begin investment advisers, or investment companies as defined under the Investment Company new text end 36.22 new text begin Act of 1940. new text end 36.23    Sec. 46. Minnesota Statutes 2008, section 79A.04, subdivision 1, is amended to read: 36.24    Subdivision 1. Annual securing of liability. Each year every private self-insuring 36.25employer shall secure incurred liabilities for the payment of compensation and the 36.26performance of its obligations and the obligations of all self-insuring employers imposed 36.27under chapter 176 by renewing the prior year's security deposit or by making a new 36.28deposit of security. If a new deposit is made, it must be posted within 60 days of the filing 36.29of the self-insured employer's annual report with the commissioner, but in no event later 36.30than July 1 new text begin in the following manner: within 60 days of the filing of the annual report, the new text end 36.31 new text begin security posting for all prior years plus one-third of the posting for the current year; by new text end 36.32 new text begin July 31, one-third of the posting for the current year; by October 31, the final one-third of new text end 36.33 new text begin the posting for the current year new text end . 37.1    Sec. 47. Minnesota Statutes 2008, section 79A.06, is amended by adding a subdivision 37.2to read: 37.3     new text begin Subd. 7. new text end new text begin Insolvency of a self-insurance group insurer. new text end new text begin In the event of the new text end 37.4 new text begin insolvency of the insurer of a self-insurance group issued a policy under section 79A.06, new text end 37.5 new text begin subdivision 5, including a policy covering only a portion of the period of self-insurance, new text end 37.6 new text begin eligibility for chapter 60C coverage under the policy shall be determined by applying the new text end 37.7 new text begin requirements of section 60C.09, subdivision 2, clause (3), to each self-insurance group new text end 37.8 new text begin member, rather than to the net worth of the self-insurance group entity or the aggregate net new text end 37.9 new text begin worth of all members of the self-insurance group entity. new text end 37.10    Sec. 48. Minnesota Statutes 2008, section 79A.24, subdivision 1, is amended to read: 37.11    Subdivision 1. Annual securing of liability. Each year every commercial 37.12self-insurance group shall secure its estimated future liability for the payment of 37.13compensation and the performance of the obligations of its membership imposed under 37.14chapter 176. A new deposit must be posted within 30 days of the filing of the commercial 37.15self-insurance group's annual actuarial report with the commissioner new text begin in the following new text end 37.16 new text begin manner: within 30 days of the filing of the annual report, the security posting for all prior new text end 37.17 new text begin years plus one-third of the posting for the current year; by July 31, one-third of the posting new text end 37.18 new text begin for the current year; by October 31, the final one-third of the posting for the current year new text end . 37.19    Sec. 49. Minnesota Statutes 2008, section 79A.24, is amended by adding a subdivision 37.20to read: 37.21     new text begin Subd. 2a. new text end new text begin Exceptions. new text end new text begin Notwithstanding the requirements of subdivisions 1 new text end 37.22 new text begin and 2, the commissioner may, until the next annual securing of liability, adjust this new text end 37.23 new text begin required security deposit for the portion attributable to the current year only, if, in the new text end 37.24 new text begin commissioner's judgment, the self-insurer will be able to meet its obligations under this new text end 37.25 new text begin chapter until the next annual securing of liability. new text end 37.26    Sec. 50. new text begin [80A.91] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE new text end 37.27 new text begin OF SOURCE. new text end 37.28 new text begin A broker-dealer shall not require an agent to maintain insurance coverage for the new text end 37.29 new text begin agent's errors and omissions from a specific insurance company. This section does not new text end 37.30 new text begin apply if the agent is an employee of that broker-dealer, or if the broker-dealer or affiliated new text end 37.31 new text begin insurance company contributes to the premiums for the errors and omissions coverage. new text end 37.32 new text begin Nothing in this section shall prohibit a broker-dealer from requiring an agent to maintain new text end 38.1 new text begin errors and omissions coverage or requiring that the errors and omissions coverage meet new text end 38.2 new text begin certain criteria. new text end 38.3    Sec. 51. Minnesota Statutes 2008, section 82.31, subdivision 4, is amended to read: 38.4    Subd. 4. Corporate and partnership licenses. (a) A corporation applying for 38.5a license shall have at least one officer individually licensed to act as broker for the 38.6corporation. The corporation broker's license shall extend no authority to act as broker 38.7to any person other than the corporate entity. Each officer who intends to act as a broker 38.8shall obtain a license. 38.9(b) A partnership applying for a license shall have at least one partner individually 38.10licensed to act as broker for the partnership. Each partner who intends to act as a broker 38.11shall obtain a license. 38.12(c) Applications for a license made by a corporation shall be verified by the president 38.13and one other officer. Applications made by a partnership shall be verified by at least 38.14two partners. 38.15(d) Any partner or officer who ceases to act as broker for a partnership or corporation 38.16shall notify the commissioner upon said termination. The individual licenses of all 38.17salespersons acting on behalf of a corporation or partnership, are automatically ineffective 38.18upon the revocation or suspension of the license of the partnership or corporation. 38.19The commissioner may suspend or revoke the license of an officer or partner without 38.20suspending or revoking the license of the corporation or partnership. 38.21(e) The application of all officers of a corporation or partners in a partnership who 38.22intend to act as a broker on behalf of a corporation or partnership shall accompany the 38.23initial license application of the corporation or partnership. Officers or partners intending 38.24to act as brokers subsequent to the licensing of the corporation or partnership shall procure 38.25an individual real estate broker's license prior to acting in the capacity of a broker. No 38.26corporate officer new text begin , or partner, new text end who maintains a salesperson's license may exercise any 38.27authority over any trust account administered by the broker nor may they be vested with 38.28any supervisory authority over the broker. 38.29(f) The corporation or partnership applicant shall make available upon request, such 38.30records and data required by the commissioner for enforcement of this chapter. 38.31(g) The commissioner may require further information, as the commissioner deems 38.32appropriate, to administer the provisions and further the purposes of this chapter. 38.33    Sec. 52. new text begin [82B.071] RECORDS. new text end 39.1     new text begin Subdivision 1. new text end new text begin Examination of records. new text end new text begin The commissioner may make examinations new text end 39.2 new text begin within or without this state of each real estate appraiser's records at such reasonable time new text end 39.3 new text begin and in such scope as is necessary to enforce the provisions of this chapter. new text end 39.4     new text begin Subd. 2. new text end new text begin Retention. new text end new text begin Licensees shall keep a separate work file for each appraisal new text end 39.5 new text begin assignment, which is to include copies of all contracts engaging his or her services for new text end 39.6 new text begin the real estate appraisal, appraisal reports, and all data, information, and documentation new text end 39.7 new text begin assembled and formulated by the appraiser to support the appraiser's opinions and new text end 39.8 new text begin conclusions and to show compliance with USPAP, for a period of five years after new text end 39.9 new text begin preparation, or at least two years after final disposition of any judicial proceedings in new text end 39.10 new text begin which the appraiser provided testimony or was the subject of litigation related to the new text end 39.11 new text begin assignment, whichever period expires last. Appropriate work file access and retrieval new text end 39.12 new text begin arrangements must be made between any trainee and supervising appraiser if only one new text end 39.13 new text begin party maintains custody of the work file. new text end 39.14    Sec. 53. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 39.15to read: 39.16     new text begin Subd. 3a. new text end new text begin Initial application. new text end new text begin The initial application for licensing of a trainee new text end 39.17 new text begin real property appraiser must identify the name and address of the supervisory appraiser new text end 39.18 new text begin or appraisers. Trainee real property appraisers licensed prior to the effective date of this new text end 39.19 new text begin provision must identify the name and address of their supervisory appraiser or appraisers new text end 39.20 new text begin at the time of license renewal. A trainee must notify the commissioner in writing within new text end 39.21 new text begin ten days of terminating or changing their relationship with any supervisory appraiser. new text end 39.22 new text begin The initial application for licensing of a certified residential real property appraiser new text end 39.23 new text begin and certified general real property appraiser who intends to act in the capacity of a new text end 39.24 new text begin supervisory appraiser must identify the name and address of the trainee real property new text end 39.25 new text begin appraiser or appraisers they intend to supervise. A certified residential real property new text end 39.26 new text begin appraiser and certified general real property appraiser licensed and acting in the capacity new text end 39.27 new text begin of a supervisory appraiser prior to the effective date of this provision must, at the time of new text end 39.28 new text begin license renewal, identify the name and address of any trainee real property appraiser or new text end 39.29 new text begin appraisers under their supervision. new text end 39.30    Sec. 54. new text begin [82B.093] TRAINEE REAL PROPERTY APPRAISER. new text end 39.31 new text begin (a) A trainee real property appraiser shall be subject to direct supervision by a new text end 39.32 new text begin certified residential real property appraiser or certified general real property appraiser in new text end 39.33 new text begin good standing. new text end 40.1 new text begin (b) A trainee real property appraiser is permitted to have more than one supervising new text end 40.2 new text begin appraiser. new text end 40.3 new text begin (c) The scope of practice for the trainee real property appraiser classification is the new text end 40.4 new text begin appraisal of those properties which the supervising appraiser is permitted by his or her new text end 40.5 new text begin current credential and that the supervising appraiser is qualified and competent to appraise. new text end 40.6 new text begin (d) A trainee real property appraiser must have a supervisor signature on each new text end 40.7 new text begin appraisal that he or she signs, or must be named in the appraisal as providing significant new text end 40.8 new text begin real property appraisal assistance to receive credit for experience hours on his or her new text end 40.9 new text begin experience log. new text end 40.10 new text begin (e) The trainee real property appraiser must maintain copies of appraisal reports he new text end 40.11 new text begin or she signed or copies of appraisal reports where he or she was named as providing new text end 40.12 new text begin significant real property appraisal assistance. new text end 40.13 new text begin (f) The trainee real property appraiser must maintain copies of work files relating to new text end 40.14 new text begin appraisal reports he or she signed. new text end 40.15 new text begin (g) Separate appraisal logs must be maintained for each supervising appraiser. new text end 40.16    Sec. 55. new text begin [82B.094] SUPERVISION OF TRAINEE REAL PROPERTY new text end 40.17 new text begin APPRAISERS. new text end 40.18 new text begin (a) A certified residential real property appraiser or a certified general real property new text end 40.19 new text begin appraiser, in good standing, may engage a trainee real property appraiser to assist in the new text end 40.20 new text begin performance of real estate appraisals, provided that the certified residential real property new text end 40.21 new text begin appraiser or a certified general real property appraiser: new text end 40.22 new text begin (1) has not been the subject of any license or certificate suspension or revocation or new text end 40.23 new text begin has not been prohibited from supervising activities in this state or any other state within new text end 40.24 new text begin the previous two years; new text end 40.25 new text begin (2) has no more than three trainee real property appraisers working under supervision new text end 40.26 new text begin at any one time; new text end 40.27 new text begin (3) actively and personally supervises the trainee real property appraiser, which new text end 40.28 new text begin includes ensuring that research of general and specific data has been adequately conducted new text end 40.29 new text begin and properly reported, application of appraisal principles and methodologies has been new text end 40.30 new text begin properly applied, that the analysis is sound and adequately reported, and that any analyses, new text end 40.31 new text begin opinions, or conclusions are adequately developed and reported so that the appraisal new text end 40.32 new text begin report is not misleading; new text end 40.33 new text begin (4) discusses with the trainee real property appraiser any necessary and appropriate new text end 40.34 new text begin changes that are made to a report, involving any trainee appraiser, before it is transmitted new text end 40.35 new text begin to the client. Changes not discussed with the trainee real property appraiser that are made new text end 41.1 new text begin by the supervising appraiser must be provided in writing to the trainee real property new text end 41.2 new text begin appraiser upon completion of the appraisal report; new text end 41.3 new text begin (5) accompanies the trainee real property appraiser on the inspections of the subject new text end 41.4 new text begin properties and drive-by inspections of the comparable sales on all appraisal assignments new text end 41.5 new text begin for which the trainee will perform work until the trainee appraiser is determined to be new text end 41.6 new text begin competent, in accordance with the competency rule of USPAP for the property type; new text end 41.7 new text begin (6) accepts full responsibility for the appraisal report by signing and certifying new text end 41.8 new text begin that the report complies with USPAP; and new text end 41.9 new text begin (7) reviews and signs the trainee real property appraiser's appraisal report or reports new text end 41.10 new text begin or if the trainee appraiser is not signing the report, states in the appraisal the name of the new text end 41.11 new text begin trainee and scope of the trainee's significant contribution to the report. new text end 41.12 new text begin (b) The supervising appraiser must review and sign the applicable experience log new text end 41.13 new text begin required to be kept by the trainee real property appraiser. new text end 41.14 new text begin (c) The supervising appraiser must notify the commissioner within ten days when new text end 41.15 new text begin the supervision of a trainee real property appraiser has terminated or when the trainee new text end 41.16 new text begin appraiser is no longer under the supervision of the supervising appraiser. new text end 41.17 new text begin (d) The supervising appraiser must maintain a separate work file for each appraisal new text end 41.18 new text begin assignment. new text end 41.19 new text begin (e) The supervising appraiser must verify that any trainee real property appraiser that new text end 41.20 new text begin is subject to supervision is properly licensed and in good standing with the commissioner. new text end 41.21    Sec. 56. Minnesota Statutes 2008, section 82B.20, subdivision 2, is amended to read: 41.22    Subd. 2. Conduct prohibited. No person may: 41.23(1) obtain or try to obtain a license under this chapter by knowingly making a 41.24false statement, submitting false information, refusing to provide complete information 41.25in response to a question in an application for license, or through any form of fraud or 41.26misrepresentation; 41.27(2) fail to meet the minimum qualifications established by this chapter; 41.28(3) be convicted, including a conviction based upon a plea of guilty or nolo 41.29contendere, of a crime that is substantially related to the qualifications, functions, and 41.30duties of a person developing real estate appraisals and communicating real estate 41.31appraisals to others; 41.32(4) engage in an act or omission involving dishonesty, fraud, or misrepresentation 41.33with the intent to substantially benefit the license holder or another person or with the 41.34intent to substantially injure another person; 42.1(5) engage in a violation of any of the standards for the development or 42.2communication of real estate appraisals as provided in this chapter; 42.3(6) fail or refuse without good cause to exercise reasonable diligence in developing 42.4an appraisal, preparing an appraisal report, or communicating an appraisal; 42.5(7) engage in negligence or incompetence in developing an appraisal, in preparing 42.6an appraisal report, or in communicating an appraisal; 42.7(8) willfully disregard or violate any of the provisions of this chapter or the rules of 42.8the commissioner for the administration and enforcement of the provisions of this chapter; 42.9(9) accept an appraisal assignment when the employment itself is contingent upon 42.10the appraiser reporting a predetermined estimate, analysis, or opinion, or where the fee 42.11to be paid is contingent upon the opinion, conclusion, or valuation reached, or upon the 42.12consequences resulting from the appraisal assignment; 42.13(10) violate the confidential nature of governmental records to which the person 42.14gained access through employment or engagement as an appraiser by a governmental 42.15agency; 42.16(11) offer, pay, or give, and no person shall accept, any compensation or other thing 42.17of value from a real estate appraiser by way of commission-splitting, rebate, finder's fee, 42.18or otherwise in connection with a real estate appraisal. This prohibition does not apply 42.19to transactions among persons licensed under this chapter if the transactions involve 42.20appraisals for which the license is required; 42.21(12) engage or authorize a person, except a person licensed under this chapter, to act 42.22as a real estate appraiser on the appraiser's behalf; 42.23(13) violate standards of professional practice; 42.24(14) make an oral appraisal report without also making a written report within a 42.25reasonable time after the oral report is made; 42.26(15) represent a market analysis to be an appraisal report; 42.27(16) give an appraisal in any circumstances where the appraiser has a conflict of 42.28interest, as determined under rules adopted by the commissioner; or 42.29(17) engage in other acts the commissioner by rule prohibits. 42.30 new text begin No person, including a mortgage originator, appraisal management company, real new text end 42.31 new text begin estate broker or salesperson, appraiser, or other licensee, registrant, or certificate holder new text end 42.32 new text begin regulated by the commissioner may improperly influence or attempt to improperly new text end 42.33 new text begin influence the development, reporting, result, or review of a real estate appraisal. Prohibited new text end 42.34 new text begin acts include blacklisting, boycotting, intimidation, coercion, and any other means that new text end 42.35 new text begin impairs or may impair the independent judgment of the appraiser, including but not new text end 42.36 new text begin limited to the withholding or threatened withholding of payment for an appraisal fee, or new text end 43.1 new text begin the conditioning of the payment of any appraisal fee upon the opinion, conclusion, or new text end 43.2 new text begin valuation to be reached, or a request that the appraiser report a predetermined opinion, new text end 43.3 new text begin conclusion, or valuation, or the desired valuation of any person, or withholding or new text end 43.4 new text begin threatening to withhold future work in order to obtain a desired value on a current or new text end 43.5 new text begin proposed appraisal assignment. new text end 43.6    Sec. 57. Minnesota Statutes 2008, section 319B.02, is amended by adding a 43.7subdivision to read: 43.8     new text begin Subd. 21a. new text end new text begin Surviving spouse. new text end new text begin "Surviving spouse" means a surviving spouse of a new text end 43.9 new text begin deceased professional as an individual, as the personal representative of the estate of the new text end 43.10 new text begin decedent, as the trustee of an inter vivos or testamentary trust created by the decedent, or new text end 43.11 new text begin as the sole heir or beneficiary of an estate or trust of which the personal representative or new text end 43.12 new text begin trustee is a bank or other institution that has trust powers. new text end 43.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 43.14 new text begin and applies to surviving spouses of professionals who die on or after that date. new text end 43.15    Sec. 58. Minnesota Statutes 2008, section 319B.07, subdivision 1, is amended to read: 43.16    Subdivision 1. Ownership of interests restricted. Ownership interests in a 43.17professional firm may not be owned or held, either directly or indirectly, except by any of 43.18the following: 43.19(1) professionals who, with respect to at least one category of the pertinent 43.20professional services, are licensed and not disqualified; 43.21(2) general partnerships, other than limited liability partnerships, authorized to 43.22furnish at least one category of the professional firm's pertinent professional services; 43.23(3) other professional firms authorized to furnish at least one category of the 43.24professional firm's pertinent professional services; 43.25(4) a voting trust established with respect to some or all of the ownership interests 43.26in the professional firm, if (i) the professional firm's generally applicable governing law 43.27permits the establishment of voting trusts, and (ii) all the voting trustees and all the holders 43.28of beneficial interests in the trust are professionals licensed to furnish at least one category 43.29of the pertinent professional services; and 43.30(5) an employee stock ownership plan as defined in section 4975(e)(7) of the 43.31Internal Revenue Code of 1986, as amended, if (i) all the voting trustees of the plan are 43.32professionals licensed to furnish at least one category of the pertinent professional services, 43.33and (ii) the ownership interests are not directly issued to anyone other than professionals 43.34licensed to furnish at least one category of the pertinent professional services new text begin ; and new text end 44.1 new text begin (6) sole ownership by a surviving spouse of a deceased professional who was the new text end 44.2 new text begin sole owner of the professional firm at the time of the professional's death, but only during new text end 44.3 new text begin the period of time ending one year after the death of the professional new text end . 44.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 44.5 new text begin and applies to surviving spouses of professionals who die on or after that date. new text end 44.6    Sec. 59. Minnesota Statutes 2008, section 319B.08, is amended to read: 44.7319B.08 EFFECT OF DEATH OR DISQUALIFICATION OF OWNER. 44.8    Subdivision 1. Acquisition of interests or automatic loss of professional 44.9firm status. (a) If an owner dies or becomes disqualified to practice all the pertinent 44.10professional services, then either: 44.11(1) within 90 days after the death or the beginning of the disqualification, all of 44.12that owner's ownership interest must be acquired by the professional firm, by persons 44.13permitted by section 319B.07 to own the ownership interest, or by some combination; or 44.14(2) at the end of the 90-day period, the firm's election under section 319B.03, 44.15subdivision 2 , or 319B.04, subdivision 2, is automatically rescinded, the firm loses 44.16its status as a professional firm, and the authority created by that election and status 44.17terminates. 44.18An acquisition satisfies clause (1) if all right and title to the deceased or disqualified 44.19owner's interest are acquired before the end of the 90-day period, even if some or all of 44.20the consideration is paid after the end of the 90-day period. However, payment cannot be 44.21secured in any way that violates sections 319B.01 to 319B.12. 44.22(b) If automatic rescission does occur under paragraph (a), the firm must immediately 44.23and accordingly update its organizational document, certificate of authority, or statement 44.24of foreign qualification. Even without that updating, however, the rescission, loss of 44.25status, and termination of authority provided by paragraph (a) occur automatically at the 44.26end of the 90-day period. 44.27    Subd. 2. Terms of acquisition. (a) If: 44.28(1) an owner dies or becomes disqualified to practice all the pertinent professional 44.29services; 44.30(2) the professional firm has in effect a mechanism, valid according to the 44.31professional firm's generally applicable governing law, to effect a purchase of the deceased 44.32or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), 44.33clause (1); and 45.1(3) the professional firm does not agree with the disqualified owner or the 45.2representative of the deceased owner to set aside the mechanism, 45.3then that mechanism applies. 45.4(b) If: 45.5(1) an owner dies or becomes disqualified to practice all the pertinent professional 45.6services; 45.7(2) the professional firm has in effect no mechanism as described in paragraph (a), or 45.8has agreed as mentioned in paragraph (a), clause (3), to set aside that mechanism; and 45.9(3) consistent with its generally applicable governing law, the professional firm 45.10agrees with the disqualified owner or the representative of the deceased owner, before 45.11the end of the 90-day period, to an arrangement to effect a purchase of the deceased 45.12or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), 45.13clause (1), 45.14then that arrangement applies. 45.15(c) If: 45.16(1) an owner of a Minnesota professional firm dies or becomes disqualified to 45.17practice all the pertinent professional services; 45.18(2) the Minnesota professional firm does not have in effect a mechanism as described 45.19in paragraph (a); 45.20(3) the Minnesota professional firm does not make an arrangement as described in 45.21paragraph (b); and 45.22(4) no provision or tenet of the Minnesota professional firm's generally applicable 45.23governing law and no provision of any document or agreement authorized by the 45.24Minnesota professional firm's generally applicable governing law expressly precludes an 45.25acquisition under this paragraph, 45.26then the firm may acquire the deceased or disqualified owner's ownership interest as 45.27stated in this paragraph. To act under this paragraph, the Minnesota professional firm 45.28must within 90 days after the death or beginning of the disqualification tender to the 45.29representative of the deceased owner's estate or to the disqualified owner the fair value 45.30of the owner's ownership interest, as determined by the Minnesota professional firm's 45.31governance authority. That price must be at least the book value, as determined in 45.32accordance with the Minnesota professional firm's regular method of accounting, as of the 45.33end of the month immediately preceding the death or loss of license. The tender must be 45.34unconditional and may not attempt to have the recipient waive any rights provided in this 45.35section. If the Minnesota professional firm tenders a price under this paragraph within 46.1the 90-day period, the deceased or disqualified owner's ownership interest immediately 46.2transfers to the Minnesota professional firm regardless of any dispute as to the fairness 46.3of the price. A disqualified owner or representative of the deceased owner's estate who 46.4disputes the fairness of the tendered price may take the tendered price and bring suit 46.5in district court seeking additional payment. The suit must be commenced within one 46.6year after the payment is tendered. A Minnesota professional firm may agree with a 46.7disqualified owner or the representative of a deceased owner's estate to delay all or part 46.8of the payment due under this paragraph, but all right and title to the owner's ownership 46.9interests must be acquired before the end of the 90-day period and payment may not be 46.10secured in any way that violates sections 319B.01 to 319B.12. 46.11    Subd. 3. Expiration of firm-issued option on death or disqualification of holder. 46.12If the holder of an option issued under section 319B.07, subdivision 3, paragraph (a), 46.13clause (1), dies or becomes disqualified, the option automatically expires. 46.14     new text begin Subd. 4. new text end new text begin One-year period for surviving spouse of sole owner. new text end new text begin For purposes new text end 46.15 new text begin of this section, each mention of "90 days," "90-day period," or similar term shall be new text end 46.16 new text begin interpreted as one year after the death of a professional who was the sole owner of the new text end 46.17 new text begin professional firm if the surviving spouse of the deceased professional owns and controls new text end 46.18 new text begin the firm after the death. new text end 46.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 46.20 new text begin and applies to surviving spouses of professionals who die on or after that date. new text end 46.21    Sec. 60. Minnesota Statutes 2008, section 319B.09, subdivision 1, is amended to read: 46.22    Subdivision 1. Governance authority. (a) Except as stated in paragraph (b), a 46.23professional firm's governance authority must rest with new text begin : new text end 46.24 new text begin (1) new text end one or more professionals, each of whom is licensed to furnish at least one 46.25category of the pertinent professional services new text begin ; or new text end 46.26 new text begin (2) a surviving spouse of a deceased professional who was the sole owner of the new text end 46.27 new text begin professional firm, while the surviving spouse owns and controls the firm, but only during new text end 46.28 new text begin the period of time ending one year after the death of the professional new text end . 46.29(b) In a Minnesota professional firm organized under chapter 317A and in a foreign 46.30professional firm organized under the nonprofit corporation statute of another state, at least 46.31one individual possessing governance authority must be a professional licensed to furnish 46.32at least one category of the pertinent professional services. 46.33(c) Individuals who possess governance authority within a professional firm may 46.34delegate administrative and operational matters to others. No decision entailing the 47.1exercise of professional judgment may be delegated or assigned to anyone who is not a 47.2professional licensed to practice the professional services involved in the decision. 47.3(d) An individual whose license to practice any pertinent professional services is 47.4revoked or suspended may not, during the time the revocation or suspension is in effect, 47.5possess or exercise governance authority, hold a position with governance authority, 47.6or take part in any decision or other action constituting an exercise of governance 47.7authority. Nothing in this chapter prevents a board from further terminating, restricting, 47.8limiting, qualifying, or imposing conditions on an individual's governance role as board 47.9disciplinary action. 47.10 new text begin (e) A professional firm owned and controlled by a surviving spouse must comply new text end 47.11 new text begin with all requirements of this chapter, except those clearly inapplicable to a firm owned new text end 47.12 new text begin and governed by a surviving spouse who is not a professional of the same type as the new text end 47.13 new text begin surviving spouse's decedent. new text end 47.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 47.15 new text begin and applies to surviving spouses of professionals who die on or after that date. new text end 47.16    Sec. 61. Minnesota Statutes 2008, section 325E.27, is amended to read: 47.17325E.27 USE OF PRERECORDED OR SYNTHESIZED VOICE MESSAGES. 47.18A caller shall not use or connect to a telephone line an automatic dialing-announcing 47.19device unless: (1) the subscriber has knowingly or voluntarily requested, consented 47.20to, permitted, or authorized receipt of the message; or (2) the message is immediately 47.21preceded by a live operator who obtains the subscriber's consent before the message is 47.22delivered. This section and section 325E.30 do not apply to (1) messages from school 47.23districts to students, parents, or employees, (2) messages to subscribers with whom the 47.24caller has a current business or personal relationship, or (3) messages advising employees 47.25of work schedules. new text begin This section does not apply to messages from a nonprofit tax-exempt new text end 47.26 new text begin charitable organization sent solely for the purpose of soliciting voluntary donations of new text end 47.27 new text begin clothing to benefit disabled United States military veterans and containing no request for new text end 47.28 new text begin monetary donations or other solicitations of any kind. new text end 47.29    Sec. 62. new text begin [325E.3161] TELEPHONE SOLICITATIONS; EXPIRATION new text end 47.30 new text begin PROVISION. new text end 47.31     new text begin Sections 325E.311 to 325E.316 expire December 31, 2012. new text end 48.1    Sec. 63. new text begin [325E.66] INSURANCE CLAIMS FOR RESIDENTIAL ROOFING new text end 48.2 new text begin GOODS AND SERVICES. new text end 48.3     new text begin Subdivision 1. new text end new text begin Payment or rebate of insurance deductible. new text end new text begin A residential roofer as new text end 48.4 new text begin defined in section 326B.802, subdivision 14, providing goods and services to be paid by an new text end 48.5 new text begin insured from the proceeds of a property or casualty insurance policy, shall not advertise or new text end 48.6 new text begin promise to pay or rebate all or part of any applicable insurance deductible. If a residential new text end 48.7 new text begin roofer violates this section, the insurer to whom the insured tendered the claim shall not be new text end 48.8 new text begin obligated to consider the estimate prepared by the residential roofer. new text end 48.9     new text begin Subd. 2. new text end new text begin Violation. new text end new text begin If a residential roofer violates subdivision 1, the insured or new text end 48.10 new text begin the applicable insurer may bring an action against the roofer in a court of competent new text end 48.11 new text begin jurisdiction for damages sustained by the insured or insurer as a consequence of the new text end 48.12 new text begin residential roofer's violation. new text end 48.13    Sec. 64. Minnesota Statutes 2008, section 332.70, subdivision 1, is amended to read: 48.14    Subdivision 1. Definitions. For purposes of this section: 48.15    (a) "Business screening service" means a person regularly engaged in the business of 48.16collecting, assembling, evaluating, or disseminating criminal record information new text begin records new text end 48.17on individuals for a fee. Business screening service does not include a government entity, 48.18as defined in section , or the news media. 48.19    (b) "Conviction" has the meaning given in section 609.02, subdivision 5. 48.20    (c) "Criminal record" means a new text begin public new text end record of an arrest, citation, prosecution, 48.21criminal proceeding, or conviction. new text begin "Criminal proceeding" does not include a written new text end 48.22 new text begin court opinion. new text end 48.23 new text begin (d) "Government entity" has the meaning given in section 13.02. new text end 48.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 48.25    Sec. 65. Minnesota Statutes 2008, section 332.70, subdivision 2, is amended to read: 48.26    Subd. 2. Criminal records. A business screening service must not disseminate a 48.27criminal record unless the record has been updated within the previous month new text begin 90 days new text end . 48.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 48.29    Sec. 66. Minnesota Statutes 2008, section 332.70, subdivision 3, is amended to read: 48.30    Subd. 3. Correction and deletion of records. (a) If the completeness or accuracy 48.31of a criminal record maintained by a business screening service is disputed by the 48.32individual who is the subject of the record, the screening service shall, without charge, 49.1investigate the disputed record. In conducting an investigation, the business screening 49.2service shall review and consider all relevant information submitted by the subject of the 49.3record with respect to the disputed record new text begin to determine whether the record maintained by new text end 49.4 new text begin the business screening service accurately reflects the content of the record maintained by new text end 49.5 new text begin the government entity or the court new text end . 49.6    (b) If the disputed record is found to be inaccurate or incomplete, the business 49.7screening service shall promptly correct the record new text begin If, upon investigation, the business new text end 49.8 new text begin screening service determines that the record does not accurately reflect the content of the new text end 49.9 new text begin record maintained by the government entity or the court, the business screening service new text end 49.10 new text begin shall correct the disputed record to accurately reflect the content of that record new text end . If the 49.11disputed record is found to be sealed, expunged, or the subject of a pardon, the business 49.12screening service shall promptly delete the record. 49.13    (c) A business screening service may terminate an investigation of a disputed record 49.14if the business screening agency reasonably determines that the dispute is frivolous, which 49.15may be based on the failure of the subject of the record to provide sufficient information to 49.16investigate the disputed record. Upon making a determination that the dispute is frivolous, 49.17the business screening service shall inform the subject of the record of the specific reasons 49.18why it has determined that the dispute is frivolous and provide a description of any 49.19information required to investigate the disputed record. 49.20    (d) The business screening service shall notify the subject of the disputed record 49.21of the correction or deletion of the record or of the termination or completion of the 49.22investigation related to the record within 30 days of the date when the agency receives 49.23notice of the dispute from the subject of the record. 49.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 49.25    Sec. 67. Minnesota Statutes 2008, section 332.70, subdivision 4, is amended to read: 49.26    Subd. 4. Date and notice required. new text begin If new text end a business screening service that disseminates 49.27a criminal record new text begin that is collected on or after July 1, 2009, it new text end must include the date when 49.28the record was collected and new text begin by the business screening service. A business screening new text end 49.29 new text begin service that disseminates a criminal record must include new text end a notice that the information may 49.30include new text begin criminal new text end records that have been expunged, sealed, or otherwise have become 49.31inaccessible to the public since that date. 49.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 50.1    Sec. 68. Minnesota Statutes 2008, section 332A.02, subdivision 13, as amended by 50.2Laws 2009, chapter 37, article 4, section 12, is amended to read: 50.3    Subd. 13. Debt settlement services provider. "Debt settlement services provider" 50.4has the meaning given in section 332B.02, subdivision 11 new text begin 13 new text end . 50.5    Sec. 69. Minnesota Statutes 2008, section 332A.14, as amended by Laws 2009, chapter 50.637, article 4, section 17, is amended to read: 50.7332A.14 PROHIBITIONS. 50.8    No debt management services provider shall: 50.9    (1) purchase from a creditor any obligation of a debtor; 50.10    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any 50.11legal process, including but not limited to garnishment and repossession of personal 50.12property, against any debtor while the debt management services agreement between the 50.13registrant and the debtor remains executory; 50.14    (3) advise, counsel, or encourage a debtor to stop paying a creditor, or imply, infer, 50.15encourage, or in any other way indicate, that it is advisable to stop paying a creditor; 50.16(4) sanction or condone the act by a debtor of ceasing payments new text begin to a creditor new text end or 50.17imply, infer, or in any manner indicate that the act of ceasing payments new text begin to a creditor new text end is 50.18advisable or beneficial to the debtor; 50.19    (5) require as a condition of performing debt management services the purchase of 50.20any services, stock, insurance, commodity, or other property or any interest therein either 50.21by the debtor or the registrant; 50.22    (6) compromise any debts unless the prior written or contractual approval of the 50.23debtor has been obtained to such compromise and unless such compromise inures solely 50.24to the benefit of the debtor; 50.25    (7) receive from any debtor as security or in payment of any fee a promissory note 50.26or other promise to pay or any mortgage or other security, whether as to real or personal 50.27property; 50.28    (8) lend money or provide credit to any debtor if any interest or fee is charged, 50.29or directly or indirectly collect any fee for referring, advising, procuring, arranging, or 50.30assisting a consumer in obtaining any extension of credit or other debtor service from a 50.31lender or debt management services provider; 50.32    (9) structure a debt management services agreement that would result in negative 50.33amortization of any debt in the plan; 50.34    (10) engage in any unfair, deceptive, or unconscionable act or practice in connection 50.35with any service provided to any debtor; 51.1    (11) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other 51.2compensation to any person for referring any prospective customer to the registrant or for 51.3enrolling a debtor in a debt management services plan, or provide any other incentives 51.4for employees or agents of the debt management services provider to induce debtors to 51.5enter into a debt management services plan; 51.6    (12) receive any cash, fee, gift, bonus, premium, reward, or other compensation 51.7from any person other than the debtor or a person on the debtor's behalf in connection 51.8with activities as a registrant, provided that this paragraph does not apply to a registrant 51.9which is a bona fide nonprofit corporation duly organized under chapter 317A or under 51.10the similar laws of another state; 51.11    (13) enter into a contract with a debtor unless a thorough written budget analysis 51.12indicates that the debtor can reasonably meet the requirements of the financial adjustment 51.13plan and will be benefited by the plan; 51.14    (14) in any way charge or purport to charge or provide any debtor credit insurance in 51.15conjunction with any contract or agreement involved in the debt management services 51.16plan; 51.17    (15) operate or employ a person who is an employee or owner of a collection agency 51.18or process-serving business; or 51.19    (16) solicit, demand, collect, require, or attempt to require payment of a sum that 51.20the registrant states, discloses, or advertises to be a voluntary contribution to a debt 51.21management services provider or designee from the debtor. 51.22    Sec. 70. Laws 2009, chapter 37, article 4, section 19, subdivision 13, is amended to 51.23read: 51.24    Subd. 13. Debt settlement services provider. "Debt settlement services provider" 51.25means any person offering or providing debt settlement services to a debtor domiciled 51.26in this state, regardless of whether or not a fee is charged for the services and regardless 51.27of whether the person maintains a physical presence in the state. The term includes any 51.28person to whom debt settlement duties new text begin services new text end are delegated. The term shall not include 51.29persons listed in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management 51.30services provider. 51.31    Sec. 71. Laws 2009, chapter 37, article 4, section 20, is amended to read: 51.32    Sec. 20. 332B.03 REQUIREMENT OF REGISTRATION. 51.33On or after August 1, 2009, it is unlawful for any person, whether or not located 51.34in this state, to operate as a debt settlement services provider or provide debt settlement 52.1services including, but not limited to, offering, advertising, or executing or causing to be 52.2executed any debt settlement services or debt settlement services agreement, except as 52.3authorized by law, without first becoming registered as provided in this chapter. Debt 52.4settlement services providers may continue to provide debt settlement services without 52.5complying with this chapter to those debtors who entered into a contract to participate 52.6in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt 52.7settlement services agreement with a debt new text begin debtor new text end on or after August 1, 2009, without 52.8complying with this chapter. 52.9    Sec. 72. Laws 2009, chapter 37, article 4, section 23, is amended to read: 52.10    Sec. 23. 332B.06 WRITTEN DEBT SETTLEMENT SERVICES 52.11AGREEMENT; DISCLOSURES; TRUST ACCOUNT. 52.12    Subdivision 1. Written agreement required. (a) A debt settlement services 52.13provider may not perform, or impose any charges or receive any payment for, any debt 52.14settlement services until the provider and the debtor have executed a debt settlement 52.15services agreement that contains all terms of the agreement between the debt settlement 52.16services provider and the debtor new text begin , new text end and new text begin the provider new text end complies with all the applicable 52.17requirements of this chapter. 52.18(b) A debt settlement services agreement must: 52.19(1) be in writing, dated, and signed by the debt settlement services provider and 52.20the debtor; 52.21(2) conspicuously indicate whether or not the debt settlement services provider is 52.22registered with the Minnesota Department of Commerce and include any registration 52.23number; and 52.24(3) be written in the debtor's primary language if the debt settlement services 52.25provider advertises in that language. 52.26(c) The registrant must furnish the debtor with a copy of the signed contract upon 52.27execution. 52.28    Subd. 2. Actions prior to executing a written agreement. No person may provide 52.29debt settlement services for a debtor or execute a debt settlement services agreement 52.30unless the person first has: 52.31(1) informed the debtor, in writing, that debt settlement is not appropriate for all 52.32debtors and that there are other ways to deal with debt, including using credit counseling 52.33or debt management services, or filing bankruptcy; 52.34(2) prepared in writing and provided to the debtor, in a form the debtor may keep, 52.35an individualized financial analysis of the debtor's financial circumstances, including 53.1income and liabilities, and made a determination supported by the individualized financial 53.2analysis that: 53.3(i) the debt settlement plan proposed for addressing the debt is suitable for the 53.4individual debtor; 53.5(ii) the debtor can reasonably meet the requirements of the proposed debt settlement 53.6services plan; and 53.7(iii) based on the totality of the circumstances, there is a net tangible benefit to the 53.8debtor of entering into the proposed debt settlement services plan; and 53.9(3) provided, on a document separate from any other document, the total amount and 53.10an itemization of fees, including any origination fees, monthly fees, and settlement fees 53.11reasonably anticipated to be paid by the debtor over the term of the agreement. 53.12    Subd. 3. Determination concerning creditor participation. (a) Before executing a 53.13debt settlement services agreement or providing any services, a debt settlement services 53.14provider must make a determination, supported by sufficient bases, which creditors listed 53.15by the debtor are reasonably likely, and which are not reasonably likely, to participate in 53.16the debt settlement services plan set forth in the debt settlement services agreement. 53.17(b) A debt settlement services provider has a defense against a claim that no 53.18sufficient basis existed to make a determination that a creditor was likely to participate if 53.19the debt settlement services provider can produce: 53.20(1) written confirmation from the creditor that, at the time the determination was 53.21made, the creditor and the debt settlement services provider were engaged in negotiations 53.22to settle a debt for another debtor; or 53.23(2) evidence that the provider and the creditor had entered into a settlement of a debt new text begin new text end 53.24 new text begin for another debtor new text end within the six months prior to the date of the determination. 53.25(c) The debt settlement services provider must notify the debtor as soon as 53.26practicable after the provider has made a determination of the likelihood of participation 53.27or nonparticipation of all the creditors listed for inclusion in the debt settlement services 53.28agreement or debt settlement services plan. If not all creditors listed in the debt settlement 53.29services agreement are reasonably likely to participate in the debt settlement services plan, 53.30the debt settlement services provider must obtain the written authorization from the debtor 53.31to proceed with the debt settlement services agreement without the likely participation of 53.32all listed creditors. 53.33    Subd. 4. Disclosures. (a) A person offering to provide or providing debt settlement 53.34services must disclose both orally and in writing whether or not the person is registered 53.35with the Minnesota Department of Commerce and any registration number. 54.1(b) No person may provide debt settlement services unless the person first has 54.2provided, both orally and in writing, on a single sheet of paper, separate from any other 54.3document or writing, the following verbatim notice: 54.4CAUTION 54.5We CANNOT GUARANTEE that you will successfully reduce or eliminate your 54.6debt. 54.7If you stop paying your creditors, there is a strong likelihood some or all of the 54.8following may happen: 54.9• YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED. 54.10• YOU MAY STILL BE CONTACTED BY CREDITORS. 54.11• YOU MAY STILL BE SUED BY CREDITORS for the money you owe. 54.12• FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT 54.13UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT. 54.14Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on 54.15the amount forgiven. 54.16Your credit rating may be adversely affected. 54.17(c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the 54.18remaining text must be in 14-point type, with a double space between each statement. 54.19(d) The disclosures and notices required under this subdivision must be provided 54.20in the debtor's primary language if the debt settlement services provider advertises in 54.21that language. 54.22    Subd. 5. Required terms. (a) Each debt settlement services agreement must contain 54.23on the front page of the agreement, segregated by bold lines from all other information 54.24on the page and disclosed prominently and clearly in bold print, the total amount and an 54.25itemization of fees, including any origination fees, monthly fees, and settlement fees 54.26reasonably anticipated to be paid by the debtor over the term of the agreement. 54.27(b) Each debt settlement services agreement must also contain the following: 54.28(1) a prominent statement describing the terms upon which the debtor may cancel 54.29the contract as set forth in section 332B.07; 54.30(2) a detailed description of all services to be performed by the debt settlement 54.31services provider for the debtor; 54.32(3) the debt settlement services provider's refund policy; 54.33(4) the debt settlement services provider's principal business address, which must 54.34not be a post office box, and the name and address of its agent in this state authorized to 54.35receive service of process; and 55.1(5) the name of each creditor the debtor has listed and the aggregate debt owed to 55.2each creditor that will be the subject of settlement. 55.3    Subd. 6. Prohibited terms. A debt settlement services agreement may not contain 55.4any of the terms prohibited under section 332A.10, subdivision 4. 55.5    Subd. 7. New debt settlement services agreements; modifications of existing 55.6agreements. (a) Separate and additional debt settlement services agreements that comply 55.7with this chapter may be entered into by the debt settlement services provider and the 55.8debtor, provided that no additional origination fee may be charged by the debt settlement 55.9services provider. 55.10(b) Any modification of an existing debt settlement services agreement, including 55.11any increase in the number or amount of debts included in the debt settlement services 55.12agreement, must be in writing and signed by both parties. No fee may be charged to 55.13modify an existing agreement. 55.14    Subd. 8. Funds held in trust. Debtor funds may be held in trust for the purpose 55.15of writing exchange checks for no longer than 42 days. If the registrant holds debtor 55.16funds, the registrant must maintain a separate trust account, except that the registrant may 55.17commingle debtor funds with the registrant's own funds, in the form of an imprest fund, 55.18to the extent necessary to ensure maintenance of a minimum balance, if the financial 55.19institution at which the trust account is held requires a minimum balance to avoid the 55.20assessment of fees or penalties for failure to maintain a minimum balance. 55.21    Sec. 73. Laws 2009, chapter 37, article 4, section 26, subdivision 2, is amended to read: 55.22    Subd. 2. Fees as a percentage of debt. (a) The total amount of the fees claimed, 55.23demanded, charged, collected, or received under this subdivision shall be calculated as 55.2415 percent of the aggregate debt. A debt settlement services provider that calculates 55.25fees as a percentage of debt may: 55.26(1) charge an origination fee, which may be designated by the debt settlement 55.27services provider as nonrefundable, of: 55.28(i) $200 on aggregate debt of less than $20,000; or 55.29(ii) $400 on aggregate debt of $20,000 or more; 55.30(2) charge a monthly fee of: 55.31(i) no greater than $50 per month on aggregate debt of less than $40,000; and 55.32(ii) no greater than $60 per month on aggregate debt of $40,000 or more; and 55.33(3) charge a settlement fee for the remainder of the allowable fees, which may be 55.34demanded and collected no earlier than upon delivery to the debt settlement services 55.35provider by a creditor of a bona fide written settlement offer consistent with the terms of 56.1the debt settlement services agreement. A settlement fee may be assessed for each debt 56.2settled, but the sum total of the origination fee, the monthly fee, and the settlement fee 56.3may not exceed 15 percent of the aggregate debt. 56.4(b) When a settlement offer is obtained by a debt settlement services provider from a 56.5creditor, the collection of any monthly fees shall cease beginning the month following 56.6the month in which the settlement offer was obtained by the debt settlement services 56.7provider new text begin The collection of monthly fees shall cease under this subdivision when the total new text end 56.8 new text begin monthly fees and the origination fee equals 40 percent of the total fees allowable under new text end 56.9 new text begin this subdivision new text end . 56.10(c) In no event may more than 40 percent of the total amount of fees allowable be 56.11claimed, demanded, charged, collected, or received by a debt settlement services provider 56.12any earlier than upon delivery to the debt settlement services provider by a creditor of 56.13a bona fide written settlement offer consistent with the terms of the debt settlement 56.14services agreement. 56.15    Sec. 74. new text begin REPEALER. new text end 56.16 new text begin Minnesota Statutes 2008, sections 60A.201, subdivision 4; 70A.07; and 79.56, new text end 56.17 new text begin subdivision 4, new text end new text begin are repealed. new text end 56.18    Sec. 75. new text begin EFFECTIVE DATE. new text end 56.19 new text begin (a) Section 27 is effective for all policies with policy years beginning on or after new text end 56.20 new text begin May 21, 2009. new text end 56.21 new text begin (b) Sections 28 to 32 apply to plans and certificates with an effective date for new text end 56.22 new text begin coverage on or after June 1, 2010. new text end 56.23 new text begin (c) Sections 46 to 49 are effective the day following final enactment. new text end