<a id="pl.1.3"></a><var>1.3</var>claims practices, disclosures, notices, marketing practices, and records; <br/>
<a id="pl.1.4"></a><var>1.4</var>classifying certain data; removing certain state regulation of telephone <br/>
<a id="pl.1.5"></a><var>1.5</var>solicitations; regulating the use of prerecorded or synthesized voice messages; <br/>
<a id="pl.1.6"></a><var>1.6</var>regulating debt management services providers; regulating business screening <br/>
<a id="pl.1.7"></a><var>1.7</var>services; permitting a deceased professional's surviving spouse to retain <br/>
<a id="pl.1.8"></a><var>1.8</var>ownership of a professional firm under certain circumstances; amending <br/>
<a id="pl.1.9"></a><var>1.9</var>Minnesota Statutes 2008, sections 13.3215; 13.716, by adding a subdivision; <br/>
<a id="pl.1.10"></a><var>1.10</var>45.011, subdivision 1; 45.0135, subdivision 7; 58.02, subdivision 17; 59B.01; <br/>
<a id="pl.1.11"></a><var>1.11</var>60A.08, by adding a subdivision; 60A.198, subdivisions 1, 3; 60A.201, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 3; 60A.205, subdivision 1; 60A.2085, subdivisions 1, 3, 7, 8; 60A.23, <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivision 8; 60A.235; 60A.32; 60K.46, by adding a subdivision; 62A.011, <br/>
<a id="pl.1.14"></a><var>1.14</var>subdivision 3; 62A.136; 62A.17, by adding a subdivision; 62A.3099, subdivision <br/>
<a id="pl.1.15"></a><var>1.15</var>18; 62A.31, subdivision 1, by adding a subdivision; 62A.315; 62A.316; 62L.02, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivision 26; 62M.05, subdivision 3a; 65A.27, subdivision 1; 65A.29, by <br/>
<a id="pl.1.17"></a><var>1.17</var>adding a subdivision; 65B.133, subdivisions 2, 3, 4; 65B.54, subdivision 1; <br/>
<a id="pl.1.18"></a><var>1.18</var>67A.191, subdivision 2; 72A.20, subdivisions 15, 26; 72A.201, by adding a <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision; 79A.04, subdivision 1; 79A.06, by adding a subdivision; 79A.24, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 1, by adding a subdivision; 82.31, subdivision 4; 82B.08, by adding a <br/>
<a id="pl.1.21"></a><var>1.21</var>subdivision; 82B.20, subdivision 2; 319B.02, by adding a subdivision; 319B.07, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 1; 319B.08; 319B.09, subdivision 1; 325E.27; 332.70, subdivisions <br/>
<a id="pl.1.23"></a><var>1.23</var>1, 2, 3, 4; 332A.02, subdivision 13, as amended; 332A.14, as amended; Laws <br/>
<a id="pl.1.24"></a><var>1.24</var>2009, chapter 37, article 4, sections 19, subdivision 13; 20; 23; 26, subdivision <br/>
<a id="pl.1.25"></a><var>1.25</var>2; proposing coding for new law in Minnesota Statutes, chapters 60A; 62A; <br/>
<a id="pl.1.26"></a><var>1.26</var>72A; 80A; 82B; 325E; repealing Minnesota Statutes 2008, sections 60A.201, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivision 4; 70A.07; 79.56, subdivision 4.<br/>
<a id="pl.1.28"></a><var>1.28</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.29"></a><var>1.29</var>    Section 1. Minnesota Statutes 2008, section 13.3215, is amended to read:<br/>
<a id="pl.1.30"></a><var>1.30</var><b>13.3215 UNIVERSITY OF MINNESOTA DATA.</b><br/>
<a id="pl.1.31"></a><var>1.31</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the terms in this <br/>
<a id="pl.1.32"></a><var>1.32</var>subdivision have the meanings given them.<br/>
<a id="pl.2.1"></a><var>2.1</var>(b) "Business data" is data described in section 13.591, subdivision 1, and includes <br/>
<a id="pl.2.2"></a><var>2.2</var>the funded amount of the University of Minnesota's commitment to the investment to <br/>
<a id="pl.2.3"></a><var>2.3</var>date, if any; the market value of the investment by the University of Minnesota; and the <br/>
<a id="pl.2.4"></a><var>2.4</var>age of the investment in years.<br/>
<a id="pl.2.5"></a><var>2.5</var>(c) "Financial, business, or proprietary data" means data, as determined by the <br/>
<a id="pl.2.6"></a><var>2.6</var>responsible authority for the University of Minnesota, that is of a financial, business, or <br/>
<a id="pl.2.7"></a><var>2.7</var>proprietary nature, the release of which could cause competitive harm to the University <br/>
<a id="pl.2.8"></a><var>2.8</var>of Minnesota, the legal entity in which the University of Minnesota has invested or has <br/>
<a id="pl.2.9"></a><var>2.9</var>considered an investment, the managing entity of an investment, or a portfolio company in <br/>
<a id="pl.2.10"></a><var>2.10</var>which the legal entity holds an interest.<br/>
<a id="pl.2.11"></a><var>2.11</var>(d) "Investment" means the investments by the University of Minnesota in the <br/>
<a id="pl.2.12"></a><var>2.12</var>following private capital:<br/>
<a id="pl.2.13"></a><var>2.13</var>(1) venture capital and other private equity investment businesses through <br/>
<a id="pl.2.14"></a><var>2.14</var>participation in limited partnerships, trusts, limited liability corporations, limited liability <br/>
<a id="pl.2.15"></a><var>2.15</var>companies, limited liability partnerships, and corporations;<br/>
<a id="pl.2.16"></a><var>2.16</var>(2) real estate ownership interests or loans secured by mortgages or deeds of trust or <br/>
<a id="pl.2.17"></a><var>2.17</var>shares of real estate investment trusts through investment in limited partnerships; and<br/>
<a id="pl.2.18"></a><var>2.18</var>(3) natural resource investments through limited partnerships, trusts, limited liability <br/>
<a id="pl.2.19"></a><var>2.19</var>corporations, limited liability companies, limited liability partnerships, and corporations.<br/>
<a id="pl.2.20"></a><var>2.20</var>    Subd. 2. <b>Claims experience data.</b> Claims experience and all related information <br/>
<a id="pl.2.21"></a><var>2.21</var>received from carriers and claims administrators participating in a University of Minnesota <br/>
<a id="pl.2.22"></a><var>2.22</var>group health, dental, life, or disability insurance plan or the University of Minnesota <br/>
<a id="pl.2.23"></a><var>2.23</var>workers' compensation program, and survey information collected from employees or <br/>
<a id="pl.2.24"></a><var>2.24</var>students participating in these plans and programs, except when the university determines <br/>
<a id="pl.2.25"></a><var>2.25</var>that release of the data will not be detrimental to the plan or program, are classified as <br/>
<a id="pl.2.26"></a><var>2.26</var>nonpublic data not on individuals pursuant to under section 
         <statute_ref>13.02, subdivision 9</statute_ref>.  <br/>
<a id="pl.2.27"></a><var>2.27</var>    Subd. 3. <b>Private equity investment data.</b> (a) Financial, business, or proprietary <br/>
<a id="pl.2.28"></a><var>2.28</var>data collected, created, received, or maintained by the University of Minnesota in <br/>
<a id="pl.2.29"></a><var>2.29</var>connection with investments are nonpublic data.<br/>
<a id="pl.2.30"></a><var>2.30</var>(b) The following data shall be public:<br/>
<a id="pl.2.31"></a><var>2.31</var>(1) the name of the general partners and the legal entity in which the University of <br/>
<a id="pl.2.32"></a><var>2.32</var>Minnesota has invested;<br/>
<a id="pl.2.33"></a><var>2.33</var>(2) the amount of the University's initial commitment, and any subsequent <br/>
<a id="pl.2.34"></a><var>2.34</var>commitments;<br/>
<a id="pl.2.35"></a><var>2.35</var>(3) quarterly reports which outline the aggregate investment performance achieved <br/>
<a id="pl.2.36"></a><var>2.36</var>and the market value, and the fees and expenses paid in aggregate to general partner <br/>
<a id="pl.3.1"></a><var>3.1</var>investment managers in each of the following specific asset classes: venture capital, <br/>
<a id="pl.3.2"></a><var>3.2</var>private equity, distressed debt, private real estate, and natural resources;<br/>
<a id="pl.3.3"></a><var>3.3</var>(4) a description of all of the types of industry sectors the University of Minnesota is <br/>
<a id="pl.3.4"></a><var>3.4</var>or has invested in, in each specific private equity asset class; and<br/>
<a id="pl.3.5"></a><var>3.5</var>(5) the portfolio performance of University of Minnesota investments overall, <br/>
<a id="pl.3.6"></a><var>3.6</var>including the number of investments, the total amount of the University of Minnesota <br/>
<a id="pl.3.7"></a><var>3.7</var>commitments, the total current market value, and the return on the total investment <br/>
<a id="pl.3.8"></a><var>3.8</var>portfolio.<br/>
<a id="pl.3.9"></a><var>3.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.3.10"></a><var>3.10</var>    Sec. 2. Minnesota Statutes 2008, section 13.716, is amended by adding a subdivision <br/>
<a id="pl.3.11"></a><var>3.11</var>to read:<br/>
<a id="pl.3.12"></a><var>3.12</var>    Subd. 8. <b>Insurance filings data.</b> Insurance filings data received by the <br/>
<a id="pl.3.13"></a><var>3.13</var>commissioner of commerce are classified under section 60A.08, subdivision 15.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.3.14"></a><var>3.14</var>    Sec. 3. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:<br/>
<a id="pl.3.15"></a><var>3.15</var>    Subdivision 1. <b>Scope.</b> As used in chapters 45 to 83, 155A, 332, 332A, 345, and <br/>
<a id="pl.3.16"></a><var>3.16</var>359, and sections 123A.21, subdivision 7, paragraph (a), clause (23); 123A.25; 
<statute_ref>325D.30</statute_ref> to <br/>
<statute_ref><a id="pl.3.17"></a><var>3.17</var>325D.42
         </statute_ref>,;
<statute_ref>326B.802</statute_ref> to 
         <statute_ref>326B.885</statute_ref>, and;
<statute_ref>386.61</statute_ref> to 
         <statute_ref>386.78</statute_ref>,; 471.617; and 471.982, unless <br/>
<a id="pl.3.18"></a><var>3.18</var>the context indicates otherwise, the terms defined in this section have the meanings given <br/>
<a id="pl.3.19"></a><var>3.19</var>them. <br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.20"></a><var>3.20</var>    Sec. 4. Minnesota Statutes 2008, section 45.0135, subdivision 7, is amended to read:<br/>
<a id="pl.3.21"></a><var>3.21</var>    Subd. 7. <b>Assessment.</b> Each insurer authorized to sell insurance in the state of <br/>
<a id="pl.3.22"></a><var>3.22</var>Minnesota, including surplus lines carriers, and having Minnesota earned premium the <br/>
<a id="pl.3.23"></a><var>3.23</var>previous calendar year shall remit an assessment to the commissioner for deposit in the <br/>
<a id="pl.3.24"></a><var>3.24</var>insurance fraud prevention account on or before June 1 of each year. The amount of the <br/>
<a id="pl.3.25"></a><var>3.25</var>assessment shall be based on the insurer's total assets and on the insurer's total written <br/>
<a id="pl.3.26"></a><var>3.26</var>Minnesota premium, for the preceding fiscal year, as reported pursuant to section 
         <statute_ref>60A.13</statute_ref>. <br/>
<a id="pl.3.27"></a><var>3.27</var>The assessment is calculated as follows to be an amount up to the following:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="25"/>
<col width="15"/>
<col width="2.5"/>
<col width="5"/>
<tr>
<td><a id="pl.3.28"></a><var>3.28</var><br/>
</td>
<td></td>
<td align="center">Total Assets<br/>
</td>
<td align="right" colspan="3">Assessment<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.29"></a><var>3.29</var><br/>
</td>
<td></td>
<td>Less than $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.30"></a><var>3.30</var><br/>
</td>
<td></td>
<td>$100,000,000 to $1,000,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.31"></a><var>3.31</var><br/>
</td>
<td></td>
<td>Over $1,000,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.3.32"></a><var>3.32</var><br/>
</td>
<td></td>
<td align="center">Minnesota Written Premium<br/>
</td>
<td align="right" colspan="3">Assessment<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.33"></a><var>3.33</var><br/>
</td>
<td></td>
<td>Less than $10,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.1"></a><var>4.1</var><br/>
</td>
<td></td>
<td>$10,000,000 to $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.2"></a><var>4.2</var><br/>
</td>
<td></td>
<td>Over $100,000,000<br/>
</td>
<td></td>
<td>$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
</table><a id="pl.4.3"></a><var>4.3</var>For purposes of this subdivision, the following entities are not considered to be <br/>
<a id="pl.4.4"></a><var>4.4</var>insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or <br/>
<a id="pl.4.5"></a><var>4.5</var>township mutuals organized under chapter 67A.<br/>
<a id="pl.4.6"></a><var>4.6</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 5. Minnesota Statutes 2008, section 58.02, subdivision 17, is amended to read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 17. <b>Person in control.</b> "Person in control" means any member of senior <br/>
<a id="pl.4.9"></a><var>4.9</var>management, including owners or officers, and other persons who possess, directly <br/>
<a id="pl.4.10"></a><var>4.10</var>or indirectly, the power to direct or cause the direction of the management policies of <br/>
<a id="pl.4.11"></a><var>4.11</var>an applicant or licensee under this chapter, regardless of whether the person has any <br/>
<a id="pl.4.12"></a><var>4.12</var>ownership interest in the applicant or licensee. Control is presumed to exist if a person, <br/>
<a id="pl.4.13"></a><var>4.13</var>directly or indirectly, owns, controls, or holds with power to vote ten percent or more of <br/>
<a id="pl.4.14"></a><var>4.14</var>the voting stock of an applicant or licensee or of a person who owns, controls, or holds <br/>
<a id="pl.4.15"></a><var>4.15</var>with power to vote ten percent or more of the voting stock of an applicant or licensee.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.16"></a><var>4.16</var>    Sec. 6. Minnesota Statutes 2008, section 59B.01, is amended to read:<br/>
<a id="pl.4.17"></a><var>4.17</var><b>59B.01 SCOPE AND PURPOSE.</b><br/>
<a id="pl.4.18"></a><var>4.18</var>    (a) The purpose of this chapter is to create a legal framework within which service <br/>
<a id="pl.4.19"></a><var>4.19</var>contracts may be sold in this state.<br/>
<a id="pl.4.20"></a><var>4.20</var>    (b) The following are exempt from this chapter:<br/>
<a id="pl.4.21"></a><var>4.21</var>    (1) warranties;<br/>
<a id="pl.4.22"></a><var>4.22</var>    (2) maintenance agreements;<br/>
<a id="pl.4.23"></a><var>4.23</var>    (3) warranties, service contracts, or maintenance agreements offered by public <br/>
<a id="pl.4.24"></a><var>4.24</var>utilities, as defined in section 
         <statute_ref>216B.02, subdivision 4</statute_ref>, or an entity or operating unit owned <br/>
<a id="pl.4.25"></a><var>4.25</var>by or under common control with a public utility;<br/>
<a id="pl.4.26"></a><var>4.26</var>    (4) service contracts sold or offered for sale to persons other than consumers;<br/>
<a id="pl.4.27"></a><var>4.27</var>    (5) service contracts on tangible property where the tangible property for which the <br/>
<a id="pl.4.28"></a><var>4.28</var>service contract is sold has a purchase price of $250 or less, exclusive of sales tax;<br/>
<a id="pl.4.29"></a><var>4.29</var>    (6) service contracts for home security equipment installed by a licensed technology <br/>
<a id="pl.4.30"></a><var>4.30</var>systems contractor; and<br/>
<a id="pl.4.31"></a><var>4.31</var>    (7) motor club membership contracts that typically provide roadside assistance <br/>
<a id="pl.4.32"></a><var>4.32</var>services to motorists stranded for reasons that include, but are not limited to, mechanical <br/>
<a id="pl.4.33"></a><var>4.33</var>breakdown or adverse road conditions.<br/>
<a id="pl.5.1"></a><var>5.1</var>    (c) The types of agreements referred to in paragraph (b) are not subject to chapters <br/>
<a id="pl.5.2"></a><var>5.2</var>60A to 79A, except as otherwise specifically provided by law.<br/>
<a id="pl.5.3"></a><var>5.3</var>    (d) Service contracts issued by motor vehicle manufacturers covering private <br/>
<a id="pl.5.4"></a><var>5.4</var>passenger automobiles are only subject to sections 
         <statute_ref>59B.03, subdivision 5</statute_ref>, 
         <statute_ref>59B.05</statute_ref>, and <br/>
<statute_ref><a id="pl.5.5"></a><var>5.5</var>59B.07
         </statute_ref>.<br/>
<a id="pl.5.6"></a><var>5.6</var>    (e) All warranty service contracts are deemed to be made in Minnesota for the <br/>
<a id="pl.5.7"></a><var>5.7</var>purpose of arbitration.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.5.8"></a><var>5.8</var>    Sec. 7. Minnesota Statutes 2008, section 60A.08, is amended by adding a subdivision <br/>
<a id="pl.5.9"></a><var>5.9</var>to read:<br/>
<a id="pl.5.10"></a><var>5.10</var>    Subd. 15. <b>Classification of insurance filings data.</b> (1) All forms, rates, and related <br/>
<a id="pl.5.11"></a><var>5.11</var>information filed with the commissioner under section 61A.02 shall be nonpublic data <br/>
<a id="pl.5.12"></a><var>5.12</var>until the filing becomes effective.<br/>
<a id="pl.5.13"></a><var>5.13</var>    (2) All forms, rates, and related information filed with the commissioner under <br/>
<a id="pl.5.14"></a><var>5.14</var>section 62A.02 shall be nonpublic data until the filing becomes effective.<br/>
<a id="pl.5.15"></a><var>5.15</var>    (3) All forms, rates, and related information filed with the commissioner under <br/>
<a id="pl.5.16"></a><var>5.16</var>section 62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.<br/>
<a id="pl.5.17"></a><var>5.17</var>    (4) All forms, rates, and related information filed with the commissioner under <br/>
<a id="pl.5.18"></a><var>5.18</var>section 70A.06 shall be nonpublic data until the filing becomes effective.<br/>
<a id="pl.5.19"></a><var>5.19</var>    (5) All forms, rates, and related information filed with the commissioner under <br/>
<a id="pl.5.20"></a><var>5.20</var>section 79.56 shall be nonpublic data until the filing becomes effective.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.5.21"></a><var>5.21</var>    Sec. 8. <b>[60A.1755] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE </b><br/>
<a id="pl.5.22"></a><var>5.22</var><b>OF SOURCE.</b><br/>
<a id="pl.5.23"></a><var>5.23</var>An insurance company shall not require an insurance agent to maintain insurance <br/>
<a id="pl.5.24"></a><var>5.24</var>coverage for the agent's errors and omissions from a specific insurance company. This <br/>
<a id="pl.5.25"></a><var>5.25</var>section does not apply if the insurance producer is a captive producer or employee of the <br/>
<a id="pl.5.26"></a><var>5.26</var>insurance company imposing the requirement, or if that insurance company or affiliated <br/>
<a id="pl.5.27"></a><var>5.27</var>broker-dealer pays for or contributes to the premiums for the errors and omissions <br/>
<a id="pl.5.28"></a><var>5.28</var>coverage. For purposes of this section, "captive producer" means a producer that writes <br/>
<a id="pl.5.29"></a><var>5.29</var>80 percent or more of the producer's gross annual insurance business for that insurance <br/>
<a id="pl.5.30"></a><var>5.30</var>company or any or all of its subsidiaries. Nothing in this section shall prohibit an insurance <br/>
<a id="pl.5.31"></a><var>5.31</var>company from requiring an insurance producer to maintain errors and omissions coverage <br/>
<a id="pl.5.32"></a><var>5.32</var>or requiring that errors and omissions coverage meet certain criteria.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.5.33"></a><var>5.33</var>    Sec. 9. Minnesota Statutes 2008, section 60A.198, subdivision 1, is amended to read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subdivision 1. <b>License required.</b> A person, as defined in section 
         <statute_ref>60A.02, <br/>
<a id="pl.6.2"></a><var>6.2</var>subdivision 7
         </statute_ref>, shall not act in any other manner as an agent or broker in the transaction <br/>
<a id="pl.6.3"></a><var>6.3</var>of surplus lines insurance unless licensed under sections 
         <statute_ref>60A.195</statute_ref> to 
         <statute_ref>60A.209</statute_ref>. A surplus <br/>
<a id="pl.6.4"></a><var>6.4</var>lines license is not required for a licensed resident agent who assists in the procurement <br/>
<a id="pl.6.5"></a><var>6.5</var>placement of surplus lines insurance with a surplus lines licensee pursuant to sections <br/>
<statute_ref><a id="pl.6.6"></a><var>6.6</var>60A.195
         </statute_ref> to 
         <statute_ref>60A.209</statute_ref>.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.7"></a><var>6.7</var>    Sec. 10. Minnesota Statutes 2008, section 60A.198, subdivision 3, is amended to read:<br/>
<a id="pl.6.8"></a><var>6.8</var>    Subd. 3. <b>Procedure for obtaining license.</b> A person licensed as an agent in this <br/>
<a id="pl.6.9"></a><var>6.9</var>state pursuant to other law may obtain a surplus lines license by doing the following:<br/>
<a id="pl.6.10"></a><var>6.10</var>(a) filing an application in the form and with the information the commissioner <br/>
<a id="pl.6.11"></a><var>6.11</var>may reasonably require to determine the ability of the applicant to act in accordance <br/>
<a id="pl.6.12"></a><var>6.12</var>with sections 
         <statute_ref>60A.195</statute_ref> to 
         <statute_ref>60A.209</statute_ref>;<br/>
<a id="pl.6.13"></a><var>6.13</var>(b) maintaining an agent's license in this state;<br/>
<a id="pl.6.14"></a><var>6.14</var>(c) registering with the association created pursuant to section 60A.2085;<br/>
<a id="pl.6.15"></a><var>6.15</var>(c) (d) agreeing to file with the commissioner of revenue all returns required by <br/>
<a id="pl.6.16"></a><var>6.16</var>chapter 297I and paying to the commissioner of revenue all amounts required under <br/>
<a id="pl.6.17"></a><var>6.17</var>chapter 297I; and<br/>
<a id="pl.6.18"></a><var>6.18</var>(e) agreeing to file all documents required pursuant to section 60A.2086 and to pay <br/>
<a id="pl.6.19"></a><var>6.19</var>the stamping fee assessed pursuant to section 60A.2085, subdivision 7; and<br/>
<a id="pl.6.20"></a><var>6.20</var>(d) (f) paying a fee as prescribed by section 
         <statute_ref>60K.55</statute_ref>.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.6.21"></a><var>6.21</var>    Sec. 11. Minnesota Statutes 2008, section 60A.201, subdivision 3, is amended to read:<br/>
<a id="pl.6.22"></a><var>6.22</var>    Subd. 3. <b>Unavailability of other coverage; presumption.</b> There shall be a <br/>
<a id="pl.6.23"></a><var>6.23</var>rebuttable presumption that the following coverages are unavailable from a licensed <br/>
<a id="pl.6.24"></a><var>6.24</var>insurer:<br/>
<a id="pl.6.25"></a><var>6.25</var>    (a) coverages on a list of unavailable coverages maintained by the commissioner <br/>
<a id="pl.6.26"></a><var>6.26</var>pursuant to subdivision 4;<br/>
<a id="pl.6.27"></a><var>6.27</var>    (b) coverages where one portion of the risk is acceptable to licensed insurers but <br/>
<a id="pl.6.28"></a><var>6.28</var>another portion of the same risk is not acceptable. The entire coverage may be placed with <br/>
<a id="pl.6.29"></a><var>6.29</var>eligible surplus lines insurers if it can be shown that the eligible surplus lines insurer will <br/>
<a id="pl.6.30"></a><var>6.30</var>accept the entire coverage but not the rejected portion alone; and<br/>
<a id="pl.6.31"></a><var>6.31</var>    (c) (b) any coverage that the licensee is unable to procure after diligent search <br/>
<a id="pl.6.32"></a><var>6.32</var>among licensed insurers.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.6.33"></a><var>6.33</var>    Sec. 12. Minnesota Statutes 2008, section 60A.205, subdivision 1, is amended to read:<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subdivision 1. <b>Authorization.</b> A surplus lines licensee may be compensated by <br/>
<a id="pl.7.2"></a><var>7.2</var>an eligible surplus lines insurer and the licensee may compensate a licensed resident <br/>
<a id="pl.7.3"></a><var>7.3</var>agent in this state for obtaining surplus lines insurance business. A licensed resident <br/>
<a id="pl.7.4"></a><var>7.4</var>agent authorized by the licensee may collect a premium on behalf of the licensee, and as <br/>
<a id="pl.7.5"></a><var>7.5</var>between the insured and the licensee, the licensee shall be considered to have received the <br/>
<a id="pl.7.6"></a><var>7.6</var>premium if the premium payment has been made to the agent.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.7.7"></a><var>7.7</var>    Sec. 13. Minnesota Statutes 2008, section 60A.2085, subdivision 1, is amended to read:<br/>
<a id="pl.7.8"></a><var>7.8</var>    Subdivision 1. <b>Association created; duties.</b> There is hereby created a nonprofit <br/>
<a id="pl.7.9"></a><var>7.9</var>association to be known as the Surplus Lines Association of Minnesota. The association <br/>
<a id="pl.7.10"></a><var>7.10</var>is not a state agency for purposes of chapter 16A, 16B, 16C, or 43A. All surplus lines <br/>
<a id="pl.7.11"></a><var>7.11</var>licensees are members of this association. Section 
         <statute_ref>60A.208</statute_ref>, subdivision 5, does not apply <br/>
<a id="pl.7.12"></a><var>7.12</var>to the association created pursuant to the provisions of this section. The association shall <br/>
<a id="pl.7.13"></a><var>7.13</var>perform its functions under the plan of operation established under subdivision 3 and must <br/>
<a id="pl.7.14"></a><var>7.14</var>exercise its powers through a board of directors established under subdivision 2 as set <br/>
<a id="pl.7.15"></a><var>7.15</var>forth in the plan of operation. The association shall be authorized and have the duty to:<br/>
<a id="pl.7.16"></a><var>7.16</var>    (1) receive, record, and stamp all surplus lines insurance documents that surplus <br/>
<a id="pl.7.17"></a><var>7.17</var>lines licensees are required to file with the association;<br/>
<a id="pl.7.18"></a><var>7.18</var>    (2) prepare and deliver monthly to the commissioners of revenue and commerce a <br/>
<a id="pl.7.19"></a><var>7.19</var>report regarding surplus lines business. The report must include a list of all the business <br/>
<a id="pl.7.20"></a><var>7.20</var>procured during the preceding month, in the form the commissioners prescribe;<br/>
<a id="pl.7.21"></a><var>7.21</var>    (3) educate its members regarding the surplus lines law of this state including <br/>
<a id="pl.7.22"></a><var>7.22</var>insurance tax responsibilities and the rules and regulations of the commissioners of <br/>
<a id="pl.7.23"></a><var>7.23</var>revenue and commerce relative to surplus lines insurance;<br/>
<a id="pl.7.24"></a><var>7.24</var>    (4) communicate with organizations of agents, brokers, and admitted insurers with <br/>
<a id="pl.7.25"></a><var>7.25</var>respect to the proper use of the surplus lines market;<br/>
<a id="pl.7.26"></a><var>7.26</var>    (5) employ and retain persons necessary to carry out the duties of the association;<br/>
<a id="pl.7.27"></a><var>7.27</var>    (6) borrow money necessary to effect the purposes of the association and grant a <br/>
<a id="pl.7.28"></a><var>7.28</var>security interest or mortgage in its assets, including the stamping fees charged pursuant to <br/>
<a id="pl.7.29"></a><var>7.29</var>subdivision 7 in order to secure the repayment of any such borrowed money;<br/>
<a id="pl.7.30"></a><var>7.30</var>    (7) enter contracts necessary to effect the purposes of the association;<br/>
<a id="pl.7.31"></a><var>7.31</var>    (8) provide other services to its members that are incidental or related to the <br/>
<a id="pl.7.32"></a><var>7.32</var>purposes of the association; and<br/>
<a id="pl.7.33"></a><var>7.33</var>(9) form and organize itself as a nonprofit corporation under chapter 317A, with the <br/>
<a id="pl.7.34"></a><var>7.34</var>powers set forth in section 317A.161 that are not otherwise limited by this section or in <br/>
<a id="pl.7.35"></a><var>7.35</var>its articles, bylaws, or plan of operation;<br/>
<a id="pl.8.1"></a><var>8.1</var>(10) file such applications and take such other action as necessary to establish and <br/>
<a id="pl.8.2"></a><var>8.2</var>maintain the association as tax exempt pursuant to the federal income tax code;<br/>
<a id="pl.8.3"></a><var>8.3</var>(11) recommend to the commissioner of commerce revisions to Minnesota law <br/>
<a id="pl.8.4"></a><var>8.4</var>relating to the regulation of surplus lines insurance in order to improve the efficiency <br/>
<a id="pl.8.5"></a><var>8.5</var>and effectiveness of that regulation; and<br/>
<a id="pl.8.6"></a><var>8.6</var>    (9) (12) take other actions reasonably required to implement the provisions of this <br/>
<a id="pl.8.7"></a><var>8.7</var>section.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.8.8"></a><var>8.8</var>    Sec. 14. Minnesota Statutes 2008, section 60A.2085, subdivision 3, is amended to read:<br/>
<a id="pl.8.9"></a><var>8.9</var>    Subd. 3. <b>Plan of operation.</b> (a) The plan of operation shall provide for the <br/>
<a id="pl.8.10"></a><var>8.10</var>formation, operation, and governance of the association as a nonprofit corporation <br/>
<a id="pl.8.11"></a><var>8.11</var>under chapter 317A. The plan of operation must provide for the election of a board of <br/>
<a id="pl.8.12"></a><var>8.12</var>directors by the members of the association. The board of directors shall elect officers as <br/>
<a id="pl.8.13"></a><var>8.13</var>provided for in the plan of operation. The plan of operation shall establish the manner of <br/>
<a id="pl.8.14"></a><var>8.14</var>voting and may weigh each member's vote to reflect the annual surplus lines insurance <br/>
<a id="pl.8.15"></a><var>8.15</var>premium written by the member. Members employed by the same or affiliated employers <br/>
<a id="pl.8.16"></a><var>8.16</var>may consolidate their premiums written and delegate an individual officer or partner <br/>
<a id="pl.8.17"></a><var>8.17</var>to represent the member in the exercise of association affairs, including service on the <br/>
<a id="pl.8.18"></a><var>8.18</var>board of directors.<br/>
<a id="pl.8.19"></a><var>8.19</var>    (b) The plan of operation shall provide for an independent audit once each year of all <br/>
<a id="pl.8.20"></a><var>8.20</var>the books and records of the association and a report of such independent audit shall be <br/>
<a id="pl.8.21"></a><var>8.21</var>made to the board of directors, the commissioner of revenue, and the commissioner of <br/>
<a id="pl.8.22"></a><var>8.22</var>commerce, with a copy made available to each member to review at the association office.<br/>
<a id="pl.8.23"></a><var>8.23</var>    (c) The plan of operation and any amendments to the plan of operation shall be <br/>
<a id="pl.8.24"></a><var>8.24</var>submitted to the commissioner and shall be effective upon approval in writing by the <br/>
<a id="pl.8.25"></a><var>8.25</var>commissioner. The association and all members shall comply with the plan of operation or <br/>
<a id="pl.8.26"></a><var>8.26</var>any amendments to it. Failure to comply with the plan of operation or any amendments <br/>
<a id="pl.8.27"></a><var>8.27</var>shall constitute a violation for which the commissioner may issue an order requiring <br/>
<a id="pl.8.28"></a><var>8.28</var>discontinuance of the violation.<br/>
<a id="pl.8.29"></a><var>8.29</var>    (d) If the interim board of directors fails to submit a suitable plan of operation <br/>
<a id="pl.8.30"></a><var>8.30</var>within 60 days following the creation of the interim board, or if at any time thereafter the <br/>
<a id="pl.8.31"></a><var>8.31</var>association fails to submit required amendments to the plan, the commissioner may submit <br/>
<a id="pl.8.32"></a><var>8.32</var>to the association a plan of operation or amendments to the plan, which the association <br/>
<a id="pl.8.33"></a><var>8.33</var>must follow. The plan of operation or amendments submitted by the commissioner shall <br/>
<a id="pl.8.34"></a><var>8.34</var>continue in force until amended by the commissioner or superseded by a plan of operation <br/>
<a id="pl.8.35"></a><var>8.35</var>or amendment submitted by the association and approved by the commissioner. A plan <br/>
<a id="pl.9.1"></a><var>9.1</var>of operation or an amendment submitted by the commissioner constitutes an order of <br/>
<a id="pl.9.2"></a><var>9.2</var>the commissioner.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.9.3"></a><var>9.3</var>    Sec. 15. Minnesota Statutes 2008, section 60A.2085, subdivision 7, is amended to read:<br/>
<a id="pl.9.4"></a><var>9.4</var>    Subd. 7. <b>Stamping fee.</b> The services performed by the association shall be <br/>
<a id="pl.9.5"></a><var>9.5</var>funded by a stamping fee assessed for each premium-bearing document submitted to <br/>
<a id="pl.9.6"></a><var>9.6</var>the association. The stamping fee shall be established by the board of directors of the <br/>
<a id="pl.9.7"></a><var>9.7</var>association from time to time. The stamping fee shall be paid by the insured to the surplus <br/>
<a id="pl.9.8"></a><var>9.8</var>lines licensee and remitted electronically to the association by the surplus lines licensee in <br/>
<a id="pl.9.9"></a><var>9.9</var>the manner established by the association.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.9.10"></a><var>9.10</var>    Sec. 16. Minnesota Statutes 2008, section 60A.2085, subdivision 8, is amended to read:<br/>
<a id="pl.9.11"></a><var>9.11</var>    Subd. 8. <b>Data classification.</b> Unless otherwise classified by statute, a temporary <br/>
<a id="pl.9.12"></a><var>9.12</var>classification under section 
         <statute_ref>13.06</statute_ref>, or federal law, information obtained by the <br/>
<a id="pl.9.13"></a><var>9.13</var>commissioner from the association is public, except that any data identifying insureds or <br/>
<a id="pl.9.14"></a><var>9.14</var>the Social Security number of a licensee or any information derived therefrom is private <br/>
<a id="pl.9.15"></a><var>9.15</var>data on individuals or nonpublic data as defined in section 
         <statute_ref>13.02, subdivisions </statute_ref>9 and 12.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.9.16"></a><var>9.16</var>    Sec. 17. Minnesota Statutes 2008, section 60A.23, subdivision 8, is amended to read:<br/>
<a id="pl.9.17"></a><var>9.17</var>    Subd. 8. <b>Self-insurance or insurance plan administrators who are vendors </b><br/>
<a id="pl.9.18"></a><var>9.18</var><b>of risk management services.</b> (1)<b> Scope.</b> This subdivision applies to any vendor of <br/>
<a id="pl.9.19"></a><var>9.19</var>risk management services and to any entity which administers, for compensation, a <br/>
<a id="pl.9.20"></a><var>9.20</var>self-insurance or insurance plan. This subdivision does not apply (a) to an insurance <br/>
<a id="pl.9.21"></a><var>9.21</var>company authorized to transact insurance in this state, as defined by section 
         <statute_ref>60A.06, <br/>
<a id="pl.9.22"></a><var>9.22</var>subdivision 1, clauses (4) and (5)
         </statute_ref>; (b) to a service plan corporation, as defined by section <br/>
<statute_ref><a id="pl.9.23"></a><var>9.23</var>62C.02, subdivision 6
         </statute_ref>; (c) to a health maintenance organization, as defined by section <br/>
<statute_ref><a id="pl.9.24"></a><var>9.24</var>62D.02, subdivision 4
         </statute_ref>; (d) to an employer directly operating a self-insurance plan for <br/>
<a id="pl.9.25"></a><var>9.25</var>its employees' benefits; (e) to an entity which administers a program of health benefits <br/>
<a id="pl.9.26"></a><var>9.26</var>established pursuant to a collective bargaining agreement between an employer, or group <br/>
<a id="pl.9.27"></a><var>9.27</var>or association of employers, and a union or unions; or (f) to an entity which administers a <br/>
<a id="pl.9.28"></a><var>9.28</var>self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance <br/>
<a id="pl.9.29"></a><var>9.29</var>to the plan and if the licensed insurer has appointed the entity administering the plan as <br/>
<a id="pl.9.30"></a><var>9.30</var>one of its licensed agents within this state.<br/>
<a id="pl.9.31"></a><var>9.31</var>(2) <b>Definitions.</b> For purposes of this subdivision the following terms have the <br/>
<a id="pl.9.32"></a><var>9.32</var>meanings given them.<br/>
<a id="pl.10.1"></a><var>10.1</var>(a) "Administering a self-insurance or insurance plan" means (i) processing, <br/>
<a id="pl.10.2"></a><var>10.2</var>reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii) <br/>
<a id="pl.10.3"></a><var>10.3</var>otherwise providing necessary administrative services in connection with the operation of <br/>
<a id="pl.10.4"></a><var>10.4</var>a self-insurance or insurance plan.<br/>
<a id="pl.10.5"></a><var>10.5</var>(b) "Employer" means an employer, as defined by section 
         <statute_ref>62E.02, subdivision 2</statute_ref>.<br/>
<a id="pl.10.6"></a><var>10.6</var>(c) "Entity" means any association, corporation, partnership, sole proprietorship, <br/>
<a id="pl.10.7"></a><var>10.7</var>trust, or other business entity engaged in or transacting business in this state.<br/>
<a id="pl.10.8"></a><var>10.8</var>(d) "Self-insurance or insurance plan" means a plan for the benefit of employees <br/>
<a id="pl.10.9"></a><var>10.9</var>or members of an association providing life, medical or hospital care, accident, sickness <br/>
<a id="pl.10.10"></a><var>10.10</var>or disability insurance for the benefit of employees or members of an association, or <br/>
<a id="pl.10.11"></a><var>10.11</var>pharmacy benefits, or a plan providing liability coverage for any other risk or hazard, <br/>
<a id="pl.10.12"></a><var>10.12</var>which is or is not directly insured or provided by a licensed insurer, service plan <br/>
<a id="pl.10.13"></a><var>10.13</var>corporation, or health maintenance organization.<br/>
<a id="pl.10.14"></a><var>10.14</var>(e) "Vendor of risk management services" means an entity providing for <br/>
<a id="pl.10.15"></a><var>10.15</var>compensation actuarial, financial management, accounting, legal or other services for the <br/>
<a id="pl.10.16"></a><var>10.16</var>purpose of designing and establishing a self-insurance or insurance plan for an employer.<br/>
<a id="pl.10.17"></a><var>10.17</var>(3) <b>License.</b> No vendor of risk management services or entity administering a <br/>
<a id="pl.10.18"></a><var>10.18</var>self-insurance or insurance plan may transact this business in this state unless it is licensed <br/>
<a id="pl.10.19"></a><var>10.19</var>to do so by the commissioner. An applicant for a license shall state in writing the type of <br/>
<a id="pl.10.20"></a><var>10.20</var>activities it seeks authorization to engage in and the type of services it seeks authorization <br/>
<a id="pl.10.21"></a><var>10.21</var>to provide. The license may be granted only when the commissioner is satisfied that the <br/>
<a id="pl.10.22"></a><var>10.22</var>entity possesses the necessary organization, background, expertise, and financial integrity <br/>
<a id="pl.10.23"></a><var>10.23</var>to supply the services sought to be offered. The commissioner may issue a license subject <br/>
<a id="pl.10.24"></a><var>10.24</var>to restrictions or limitations upon the authorization, including the type of services which <br/>
<a id="pl.10.25"></a><var>10.25</var>may be supplied or the activities which may be engaged in. The license fee is $1,500 <br/>
<a id="pl.10.26"></a><var>10.26</var>for the initial application and $1,500 for each three-year renewal. All licenses are for <br/>
<a id="pl.10.27"></a><var>10.27</var>a period of three years.<br/>
<a id="pl.10.28"></a><var>10.28</var>(4) <b>Regulatory restrictions; powers of the commissioner.</b> To assure that <br/>
<a id="pl.10.29"></a><var>10.29</var>self-insurance or insurance plans are financially solvent, are administered in a fair and <br/>
<a id="pl.10.30"></a><var>10.30</var>equitable fashion, and are processing claims and paying benefits in a prompt, fair, <br/>
<a id="pl.10.31"></a><var>10.31</var>and honest manner, vendors of risk management services and entities administering <br/>
<a id="pl.10.32"></a><var>10.32</var>insurance or self-insurance plans are subject to the supervision and examination by the <br/>
<a id="pl.10.33"></a><var>10.33</var>commissioner. Vendors of risk management services, entities administering insurance or <br/>
<a id="pl.10.34"></a><var>10.34</var>self-insurance plans, and insurance or self-insurance plans established or operated by <br/>
<a id="pl.10.35"></a><var>10.35</var>them are subject to the trade practice requirements of sections 
         <statute_ref>72A.19</statute_ref> to 
         <statute_ref>72A.30</statute_ref>. In lieu <br/>
<a id="pl.10.36"></a><var>10.36</var>of an unlimited guarantee from a parent corporation for a vendor of risk management <br/>
<a id="pl.11.1"></a><var>11.1</var>services or an entity administering insurance or self-insurance plans, the commissioner <br/>
<a id="pl.11.2"></a><var>11.2</var>may accept a surety bond in a form satisfactory to the commissioner in an amount equal to <br/>
<a id="pl.11.3"></a><var>11.3</var>120 percent of the total amount of claims handled by the applicant in the prior year. If at <br/>
<a id="pl.11.4"></a><var>11.4</var>any time the total amount of claims handled during a year exceeds the amount upon which <br/>
<a id="pl.11.5"></a><var>11.5</var>the bond was calculated, the administrator shall immediately notify the commissioner. <br/>
<a id="pl.11.6"></a><var>11.6</var>The commissioner may require that the bond be increased accordingly.<br/>
<a id="pl.11.7"></a><var>11.7</var>No contract entered into after July 1, 2001, between a licensed vendor of risk <br/>
<a id="pl.11.8"></a><var>11.8</var>management services and a group authorized to self-insure for workers' compensation <br/>
<a id="pl.11.9"></a><var>11.9</var>liabilities under section 
         <statute_ref>79A.03, subdivision 6</statute_ref>, may take effect until it has been filed <br/>
<a id="pl.11.10"></a><var>11.10</var>with the commissioner, and either (1) the commissioner has approved it or (2) 60 days <br/>
<a id="pl.11.11"></a><var>11.11</var>have elapsed and the commissioner has not disapproved it as misleading or violative of <br/>
<a id="pl.11.12"></a><var>11.12</var>public policy.<br/>
<a id="pl.11.13"></a><var>11.13</var>(5) <b>Rulemaking authority.</b> To carry out the purposes of this subdivision, the <br/>
<a id="pl.11.14"></a><var>11.14</var>commissioner may adopt rules pursuant to sections 
         <statute_ref>14.001</statute_ref> to 
         <statute_ref>14.69</statute_ref>. These rules may:<br/>
<a id="pl.11.15"></a><var>11.15</var>(a) establish reporting requirements for administrators of insurance or self-insurance <br/>
<a id="pl.11.16"></a><var>11.16</var>plans;<br/>
<a id="pl.11.17"></a><var>11.17</var>(b) establish standards and guidelines to assure the adequacy of financing, reinsuring, <br/>
<a id="pl.11.18"></a><var>11.18</var>and administration of insurance or self-insurance plans;<br/>
<a id="pl.11.19"></a><var>11.19</var>(c) establish bonding requirements or other provisions assuring the financial integrity <br/>
<a id="pl.11.20"></a><var>11.20</var>of entities administering insurance or self-insurance plans; or<br/>
<a id="pl.11.21"></a><var>11.21</var>(d) establish other reasonable requirements to further the purposes of this <br/>
<a id="pl.11.22"></a><var>11.22</var>subdivision.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.11.23"></a><var>11.23</var>    Sec. 18. Minnesota Statutes 2008, section 60A.235, is amended to read:<br/>
<a id="pl.11.24"></a><var>11.24</var><b>60A.235 STANDARDS FOR DETERMINING WHETHER CONTRACTS </b><br/>
<a id="pl.11.25"></a><var>11.25</var><b>ARE HEALTH PLAN CONTRACTS OR STOP LOSS CONTRACTS.</b><br/>
<a id="pl.11.26"></a><var>11.26</var>    Subdivision 1. <b>Findings and purpose.</b> The purpose of this section is to establish <br/>
<a id="pl.11.27"></a><var>11.27</var>a standard for the determination of whether an insurance policy or other evidence or <br/>
<a id="pl.11.28"></a><var>11.28</var>coverage should be treated as a policy of accident and sickness insurance or a stop loss <br/>
<a id="pl.11.29"></a><var>11.29</var>policy for the purpose of the regulation of the business of insurance. The laws regulating <br/>
<a id="pl.11.30"></a><var>11.30</var>the business of insurance in Minnesota impose distinctly different requirements upon <br/>
<a id="pl.11.31"></a><var>11.31</var>accident and sickness insurance policies and stop loss policies. In particular, the regulation <br/>
<a id="pl.11.32"></a><var>11.32</var>of accident and sickness insurance in Minnesota includes measures designed to reform the <br/>
<a id="pl.11.33"></a><var>11.33</var>health insurance market, to minimize or prohibit selective rating or rejection of employee <br/>
<a id="pl.11.34"></a><var>11.34</var>groups or individual group members based upon health conditions, and to provide access <br/>
<a id="pl.11.35"></a><var>11.35</var>to affordable health insurance coverage regardless of preexisting health conditions. The <br/>
<a id="pl.12.1"></a><var>12.1</var>health care reform provisions enacted in Minnesota will only be effective if they are <br/>
<a id="pl.12.2"></a><var>12.2</var>applied to all insurers and health carriers who in substance, regardless of purported form, <br/>
<a id="pl.12.3"></a><var>12.3</var>engage in the business of issuing health insurance coverage to employees of an employee <br/>
<a id="pl.12.4"></a><var>12.4</var>group. This section applies to insurance companies and health carriers and the policies or <br/>
<a id="pl.12.5"></a><var>12.5</var>other evidence of coverage that they issue. This section does not apply to employers or the <br/>
<a id="pl.12.6"></a><var>12.6</var>benefit plans they establish for their employees.<br/>
<a id="pl.12.7"></a><var>12.7</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, the terms defined in this <br/>
<a id="pl.12.8"></a><var>12.8</var>subdivision have the meanings given.<br/>
<a id="pl.12.9"></a><var>12.9</var>(a) "Attachment point" means the claims amount incurred by an insured group <br/>
<a id="pl.12.10"></a><var>12.10</var>beyond which the insurance company or health carrier incurs a liability for payment.<br/>
<a id="pl.12.11"></a><var>12.11</var>(b) "Direct coverage" means coverage under which an insurance company or health <br/>
<a id="pl.12.12"></a><var>12.12</var>carrier assumes a direct obligation to an individual, under the policy or evidence of <br/>
<a id="pl.12.13"></a><var>12.13</var>coverage, with respect to health care expenses incurred by the individual or a member <br/>
<a id="pl.12.14"></a><var>12.14</var>of the individual's family.<br/>
<a id="pl.12.15"></a><var>12.15</var>(c) "Expected claims" means the amount of claims that, in the absence of a stop loss <br/>
<a id="pl.12.16"></a><var>12.16</var>policy or other insurance or evidence of coverage, are projected to be incurred under by an <br/>
<a id="pl.12.17"></a><var>12.17</var>employer-sponsored plan covering health care expenses.<br/>
<a id="pl.12.18"></a><var>12.18</var>(d) "Expected plan claims" means the expected claims less the projected claims in <br/>
<a id="pl.12.19"></a><var>12.19</var>excess of the specific attachment point, adjusted to be consistent with the employer's <br/>
<a id="pl.12.20"></a><var>12.20</var>aggregate contract period.<br/>
<a id="pl.12.21"></a><var>12.21</var>(e) "Health plan" means a health plan as defined in section 
         <statute_ref>62A.011</statute_ref> and includes <br/>
<a id="pl.12.22"></a><var>12.22</var>group coverage regardless of the size of the group.<br/>
<a id="pl.12.23"></a><var>12.23</var>(f) "Health carrier" means a health carrier as defined in section 
         <statute_ref>62A.011</statute_ref>.<br/>
<a id="pl.12.24"></a><var>12.24</var>    Subd. 3. <b>Health plan policies issued as stop loss coverage.</b> (a) An insurance <br/>
<a id="pl.12.25"></a><var>12.25</var>company or health carrier issuing or renewing an insurance policy or other evidence of <br/>
<a id="pl.12.26"></a><var>12.26</var>coverage, that provides coverage to an employer for health care expenses incurred under <br/>
<a id="pl.12.27"></a><var>12.27</var>an employer-sponsored plan provided to the employer's employees, retired employees, <br/>
<a id="pl.12.28"></a><var>12.28</var>or their dependents, shall issue the policy or evidence of coverage as a health plan if the <br/>
<a id="pl.12.29"></a><var>12.29</var>policy or evidence of coverage:<br/>
<a id="pl.12.30"></a><var>12.30</var>(1) has a specific attachment point for claims incurred per individual that is lower <br/>
<a id="pl.12.31"></a><var>12.31</var>than $10,000 $20,000; or<br/>
<a id="pl.12.32"></a><var>12.32</var>(2) has an aggregate attachment point, for groups of 50 or fewer, that is lower than <br/>
<a id="pl.12.33"></a><var>12.33</var>the sum greater of:<br/>
<a id="pl.12.34"></a><var>12.34</var>(i) 140 percent of the first $50,000 of expected plan claims;<br/>
<a id="pl.12.35"></a><var>12.35</var>(ii) 120 percent of the next $450,000 of expected plan claims; and<br/>
<a id="pl.12.36"></a><var>12.36</var>(iii) 110 percent of the remaining expected plan claims.<br/>
<a id="pl.13.1"></a><var>13.1</var>(i) $4,000 times the number of group members;<br/>
<a id="pl.13.2"></a><var>13.2</var>(ii) 120 percent of expected claims; or<br/>
<a id="pl.13.3"></a><var>13.3</var>(iii) $20,000; or<br/>
<a id="pl.13.4"></a><var>13.4</var>(3) has an aggregate attachment point for groups of 51 or more that is lower than <br/>
<a id="pl.13.5"></a><var>13.5</var>110 percent of expected claims.<br/>
<a id="pl.13.6"></a><var>13.6</var>(b) An insurer shall determine the number of persons in a group, for the purposes <br/>
<a id="pl.13.7"></a><var>13.7</var>of this section, on a consistent basis, at least annually. Where the insurance policy or <br/>
<a id="pl.13.8"></a><var>13.8</var>evidence of coverage applies to a contract period of more than one year, the dollar <br/>
<a id="pl.13.9"></a><var>13.9</var>amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length <br/>
<a id="pl.13.10"></a><var>13.10</var>of the contract period expressed in years.<br/>
<a id="pl.13.11"></a><var>13.11</var>(c) The commissioner may adjust the constant dollar amounts provided in paragraph <br/>
<a id="pl.13.12"></a><var>13.12</var>(a), clauses (1) and, (2), and (3), on January 1 of any year, based upon changes in <br/>
<a id="pl.13.13"></a><var>13.13</var>the medical component of the Consumer Price Index (CPI). Adjustments must be in <br/>
<a id="pl.13.14"></a><var>13.14</var>increments of $100 and must not be made unless at least that amount of adjustment is <br/>
<a id="pl.13.15"></a><var>13.15</var>required. The commissioner shall publish any change in these dollar amounts at least <br/>
<a id="pl.13.16"></a><var>13.16</var>three six months before their effective date.<br/>
<a id="pl.13.17"></a><var>13.17</var>(d) A policy or evidence of coverage issued by an insurance company or health <br/>
<a id="pl.13.18"></a><var>13.18</var>carrier that provides direct coverage of health care expenses of an individual including a <br/>
<a id="pl.13.19"></a><var>13.19</var>policy or evidence of coverage administered on a group basis is a health plan regardless of <br/>
<a id="pl.13.20"></a><var>13.20</var>whether the policy or evidence of coverage is denominated as stop loss coverage.<br/>
<a id="pl.13.21"></a><var>13.21</var>    Subd. 3a. <b>Actuarial certification.</b> An insurer shall file with the commissioner <br/>
<a id="pl.13.22"></a><var>13.22</var>annually on or before March 15, an actuarial certification certifying that the insurer is in <br/>
<a id="pl.13.23"></a><var>13.23</var>compliance with sections 60A.235 and 60A.236. The certification shall be in a form and <br/>
<a id="pl.13.24"></a><var>13.24</var>manner, and shall contain information, specified by the commissioner. A copy of the <br/>
<a id="pl.13.25"></a><var>13.25</var>certification shall be retained by the insurer at its principal place of business.<br/>
<a id="pl.13.26"></a><var>13.26</var>    Subd. 4. <b>Compliance.</b> (a) An insurance company or health carrier that is required to <br/>
<a id="pl.13.27"></a><var>13.27</var>issue a policy or evidence of coverage as a health plan under this section shall, even if the <br/>
<a id="pl.13.28"></a><var>13.28</var>policy or evidence of coverage is denominated as stop loss coverage, comply with all the <br/>
<a id="pl.13.29"></a><var>13.29</var>laws of this state that apply to the health plan, including, but not limited to, chapters 62A, <br/>
<a id="pl.13.30"></a><var>13.30</var>62C, 62D, 62E, 62L, and 62Q.<br/>
<a id="pl.13.31"></a><var>13.31</var>(b) With respect to an employer who had been issued a policy or evidence of <br/>
<a id="pl.13.32"></a><var>13.32</var>coverage denominated as stop loss coverage before June 2, 1995 the effective date of this <br/>
<a id="pl.13.33"></a><var>13.33</var>section, compliance with this section is required as of the first renewal date occurring on <br/>
<a id="pl.13.34"></a><var>13.34</var>or after June 2, 1995 August 1, 2009, and applies to policies issued or renewed on or <br/>
<a id="pl.13.35"></a><var>13.35</var>after that date.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.14.1"></a><var>14.1</var>    Sec. 19. Minnesota Statutes 2008, section 60A.32, is amended to read:<br/>
<a id="pl.14.2"></a><var>14.2</var><b>60A.32 RATE FILING FOR CROP HAIL INSURANCE.</b><br/>
<a id="pl.14.3"></a><var>14.3</var>    Subdivision 1. <b>Authority.</b> An insurer issuing policies of insurance against crop <br/>
<a id="pl.14.4"></a><var>14.4</var>damage by hail in this state shall file its insurance rates with the commissioner using the <br/>
<a id="pl.14.5"></a><var>14.5</var>expedited filing procedure under subdivision 2. The insurance rates must be filed before <br/>
<a id="pl.14.6"></a><var>14.6</var>February 1 of the year in which a policy is issued.<br/>
<a id="pl.14.7"></a><var>14.7</var>    Subd. 2. <b>Compliance certifications.</b> In addition to the proposed rates, an insurer <br/>
<a id="pl.14.8"></a><var>14.8</var>shall file with the Department of Commerce on a form prescribed by the commissioner a <br/>
<a id="pl.14.9"></a><var>14.9</var>written certification, signed by an officer of the insurer, that the rates comply with section <br/>
<a id="pl.14.10"></a><var>14.10</var>70A.04. Rates filed under this procedure are effective upon the date of receipt or on a <br/>
<a id="pl.14.11"></a><var>14.11</var>subsequent date requested by the insurer.<br/>
<a id="pl.14.12"></a><var>14.12</var>    Subd. 3. <b>Fee.</b> In order to be effective, the filing must be accompanied by payment of <br/>
<a id="pl.14.13"></a><var>14.13</var>the applicable filing fee.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.14.14"></a><var>14.14</var>    Sec. 20. <b>[60A.39] CERTIFICATES OF INSURANCE.</b><br/>
<a id="pl.14.15"></a><var>14.15</var>    Subdivision 1. <b>Issuance.</b> A licensed insurer or insurance producer may provide to a <br/>
<a id="pl.14.16"></a><var>14.16</var>third party a certificate of insurance which documents insurance coverage. The purpose <br/>
<a id="pl.14.17"></a><var>14.17</var>of a certificate of insurance is to provide evidence of insurance coverage and the amount <br/>
<a id="pl.14.18"></a><var>14.18</var>of insurance issued.<br/>
<a id="pl.14.19"></a><var>14.19</var>    Subd. 2. <b>Approval.</b> An insurer or licensed producer shall not issue a certificate of <br/>
<a id="pl.14.20"></a><var>14.20</var>insurance or other document or instrument that either affirmatively or negatively amends, <br/>
<a id="pl.14.21"></a><var>14.21</var>extends, or alters the coverage provided by an approved policy, form, or endorsement <br/>
<a id="pl.14.22"></a><var>14.22</var>without the written approval of the commissioner.<br/>
<a id="pl.14.23"></a><var>14.23</var>    Subd. 3. <b>Required statement.</b> A certificate or memorandum of property or casualty <br/>
<a id="pl.14.24"></a><var>14.24</var>insurance when issued to any person other than the policyholder must contain the following <br/>
<a id="pl.14.25"></a><var>14.25</var>or similar statement: "This certificate or memorandum of insurance does not affirmatively <br/>
<a id="pl.14.26"></a><var>14.26</var>or negatively amend, extend, or alter the coverage afforded by the insurance policy."<br/>
<a id="pl.14.27"></a><var>14.27</var>    Subd. 4. <b>Cancellation notice.</b> A certificate provided to a third party must not <br/>
<a id="pl.14.28"></a><var>14.28</var>provide for notice of cancellation that exceeds the statutory notice of cancellation provided <br/>
<a id="pl.14.29"></a><var>14.29</var>to the policyholder.<br/>
<a id="pl.14.30"></a><var>14.30</var>    Subd. 5. <b>Filing.</b> An insurer not using the standard ACORD or ISO form "Certificate <br/>
<a id="pl.14.31"></a><var>14.31</var>of Insurance" shall file with the commissioner, prior to its use, the form of certificate or <br/>
<a id="pl.14.32"></a><var>14.32</var>memorandum of insurance coverage that will be used by the insurer. Filed forms may not <br/>
<a id="pl.14.33"></a><var>14.33</var>be amended at the request of a third party.<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 6. <b>Opinion letters.</b> A licensed insurance producer may not issue, in lieu of a <br/>
<a id="pl.15.2"></a><var>15.2</var>certificate, an agent's opinion letter or other correspondence that is inconsistent with <br/>
<a id="pl.15.3"></a><var>15.3</var>this section.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.15.4"></a><var>15.4</var>    Sec. 21. Minnesota Statutes 2008, section 60K.46, is amended by adding a subdivision <br/>
<a id="pl.15.5"></a><var>15.5</var>to read:<br/>
<a id="pl.15.6"></a><var>15.6</var>    Subd. 8. <b>Certificates of insurance.</b> An insurance producer shall not issue a <br/>
<a id="pl.15.7"></a><var>15.7</var>certificate of insurance, or other evidence of insurance coverage that either affirmatively or <br/>
<a id="pl.15.8"></a><var>15.8</var>negatively amends, extends, or alters the coverage as provided by the policy, or provides <br/>
<a id="pl.15.9"></a><var>15.9</var>notice of cancellation to a third party that exceeds the statutory notice requirement to a <br/>
<a id="pl.15.10"></a><var>15.10</var>policyholder.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.15.11"></a><var>15.11</var>    Sec. 22. Minnesota Statutes 2008, section 62A.011, subdivision 3, is amended to read:<br/>
<a id="pl.15.12"></a><var>15.12</var>    Subd. 3. <b>Health plan.</b> "Health plan" means a policy or certificate of accident and <br/>
<a id="pl.15.13"></a><var>15.13</var>sickness insurance as defined in section 
         <statute_ref>62A.01</statute_ref> offered by an insurance company licensed <br/>
<a id="pl.15.14"></a><var>15.14</var>under chapter 60A; a subscriber contract or certificate offered by a nonprofit health <br/>
<a id="pl.15.15"></a><var>15.15</var>service plan corporation operating under chapter 62C; a health maintenance contract or <br/>
<a id="pl.15.16"></a><var>15.16</var>certificate offered by a health maintenance organization operating under chapter 62D; a <br/>
<a id="pl.15.17"></a><var>15.17</var>health benefit certificate offered by a fraternal benefit society operating under chapter <br/>
<a id="pl.15.18"></a><var>15.18</var>64B; or health coverage offered by a joint self-insurance employee health plan operating <br/>
<a id="pl.15.19"></a><var>15.19</var>under chapter 62H. Health plan means individual and group coverage, unless otherwise <br/>
<a id="pl.15.20"></a><var>15.20</var>specified. Health plan does not include coverage that is: <br/>
<a id="pl.15.21"></a><var>15.21</var>(1) limited to disability or income protection coverage;<br/>
<a id="pl.15.22"></a><var>15.22</var>(2) automobile medical payment coverage;<br/>
<a id="pl.15.23"></a><var>15.23</var>(3) supplemental to liability insurance;<br/>
<a id="pl.15.24"></a><var>15.24</var>(4) designed solely to provide payments on a per diem, fixed indemnity, or <br/>
<a id="pl.15.25"></a><var>15.25</var>non-expense-incurred basis;<br/>
<a id="pl.15.26"></a><var>15.26</var>(5) credit accident and health insurance as defined in section 
         <statute_ref>62B.02</statute_ref>; <br/>
<a id="pl.15.27"></a><var>15.27</var>(6) designed solely to provide hearing, dental, or vision care;<br/>
<a id="pl.15.28"></a><var>15.28</var>(7) blanket accident and sickness insurance as defined in section 
         <statute_ref>62A.11</statute_ref>; <br/>
<a id="pl.15.29"></a><var>15.29</var>(8) accident-only coverage;<br/>
<a id="pl.15.30"></a><var>15.30</var>(9) a long-term care policy as defined in section 
         <statute_ref>62A.46</statute_ref> or 
         <statute_ref>62S.01</statute_ref>; <br/>
<a id="pl.15.31"></a><var>15.31</var>(10) issued as a supplement to Medicare, as defined in sections 
         <statute_ref>62A.3099</statute_ref> to <br/>
<statute_ref><a id="pl.15.32"></a><var>15.32</var>62A.44
         </statute_ref>, or policies, contracts, or certificates that supplement Medicare issued by health <br/>
<a id="pl.15.33"></a><var>15.33</var>maintenance organizations or those policies, contracts, or certificates governed by section <br/>
<a id="pl.16.1"></a><var>16.1</var>1833 or 1876 of the federal Social Security Act, United States Code, title 42, section <br/>
<a id="pl.16.2"></a><var>16.2</var>1395, et seq., as amended; <br/>
<a id="pl.16.3"></a><var>16.3</var>(11) workers' compensation insurance; or<br/>
<a id="pl.16.4"></a><var>16.4</var>(12) issued solely as a companion to a health maintenance contract as described in <br/>
<a id="pl.16.5"></a><var>16.5</var>section 
         <statute_ref>62D.12, subdivision 1a</statute_ref>, so long as the health maintenance contract meets the <br/>
<a id="pl.16.6"></a><var>16.6</var>definition of a health plan. <br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.16.7"></a><var>16.7</var>    Sec. 23. Minnesota Statutes 2008, section 62A.136, is amended to read:<br/>
<a id="pl.16.8"></a><var>16.8</var><b>62A.136 </b><b>HEARING, </b><b>DENTAL</b><b>,</b><b> AND VISION PLAN COVERAGE.</b><br/>
<a id="pl.16.9"></a><var>16.9</var>The following provisions do not apply to health plans as defined in section 
         <statute_ref>62A.011, <br/>
<a id="pl.16.10"></a><var>16.10</var>subdivision 3
         </statute_ref>, clause (6), providing hearing, dental, or vision coverage only: sections <br/>
<statute_ref><a id="pl.16.11"></a><var>16.11</var>62A.041
         </statute_ref>; 
         <statute_ref>62A.0411</statute_ref>; 
         <statute_ref>62A.047</statute_ref>; 
         <statute_ref>62A.149</statute_ref>; 
         <statute_ref>62A.151</statute_ref>; 
         <statute_ref>62A.152</statute_ref>; 
         <statute_ref>62A.154</statute_ref>; 
         <statute_ref>62A.155</statute_ref>; 
         <statute_ref>62A.17, <br/>
<a id="pl.16.12"></a><var>16.12</var>subdivision 6
         </statute_ref>; 
         <statute_ref>62A.21, subdivision 2b</statute_ref>; 
         <statute_ref>62A.26</statute_ref>; 
         <statute_ref>62A.28</statute_ref>; 
         <statute_ref>62A.285</statute_ref>; 
         <statute_ref>62A.30</statute_ref>; 
         <statute_ref>62A.304</statute_ref>; <br/>
<statute_ref><a id="pl.16.13"></a><var>16.13</var>62A.3093
         </statute_ref>; and 
         <statute_ref>62E.16</statute_ref>.<br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.16.14"></a><var>16.14</var>    Sec. 24. Minnesota Statutes 2008, section 62A.17, is amended by adding a subdivision <br/>
<a id="pl.16.15"></a><var>16.15</var>to read:<br/>
<a id="pl.16.16"></a><var>16.16</var>    Subd. 5b. <b>Notices required by the American Recovery and Reinvestment Act of </b><br/>
<a id="pl.16.17"></a><var>16.17</var><b>2009 (ARRA).</b> (a) An employer that maintains a group health plan that is not described in <br/>
<a id="pl.16.18"></a><var>16.18</var>Internal Revenue Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of <br/>
<a id="pl.16.19"></a><var>16.19</var>the American Recovery and Reinvestment Act of 2009 (ARRA), must notify the health <br/>
<a id="pl.16.20"></a><var>16.20</var>carrier of the termination of, or the layoff from, employment of a covered employee, and <br/>
<a id="pl.16.21"></a><var>16.21</var>the name and last known address of the employee, within the later of ten days after the <br/>
<a id="pl.16.22"></a><var>16.22</var>termination or layoff event, or June 8, 2009.<br/>
<a id="pl.16.23"></a><var>16.23</var>(b) The health carrier for a group health plan that is not described in Internal Revenue <br/>
<a id="pl.16.24"></a><var>16.24</var>Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of the ARRA, <br/>
<a id="pl.16.25"></a><var>16.25</var>must provide the notice of extended election rights which is required by subdivision <br/>
<a id="pl.16.26"></a><var>16.26</var>5a, paragraph (a), as well as any other notice that is required by the ARRA regarding <br/>
<a id="pl.16.27"></a><var>16.27</var>the availability of premium reduction rights, to the individual within 30 days after the <br/>
<a id="pl.16.28"></a><var>16.28</var>employer notifies the health carrier as required by paragraph (a).<br/>
<a id="pl.16.29"></a><var>16.29</var>(c) The notice responsibilities set forth in this subdivision end when the premium <br/>
<a id="pl.16.30"></a><var>16.30</var>reduction provisions under ARRA expire.<br/>
<a id="pl.16.31"></a><var>16.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.25.0"></a><a id="pl.17.1"></a><var>17.1</var>    Sec. 25. Minnesota Statutes 2008, section 62A.3099, subdivision 18, is amended to <br/>
<a id="pl.17.2"></a><var>17.2</var>read:<br/>
<a id="pl.17.3"></a><var>17.3</var>    Subd. 18. <b>Medicare supplement policy or certificate.</b> "Medicare supplement <br/>
<a id="pl.17.4"></a><var>17.4</var>policy or certificate" means a group or individual policy of accident and sickness insurance <br/>
<a id="pl.17.5"></a><var>17.5</var>or a subscriber contract of hospital and medical service associations or health maintenance <br/>
<a id="pl.17.6"></a><var>17.6</var>organizations, other than those policies or certificates covered by section 1833 of the <br/>
<a id="pl.17.7"></a><var>17.7</var>federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued <br/>
<a id="pl.17.8"></a><var>17.8</var>policy under a demonstration project specified under amendments to the federal Social <br/>
<a id="pl.17.9"></a><var>17.9</var>Security Act, which is advertised, marketed, or designed primarily as a supplement to <br/>
<a id="pl.17.10"></a><var>17.10</var>reimbursements under Medicare for the hospital, medical, or surgical expenses of persons <br/>
<a id="pl.17.11"></a><var>17.11</var>eligible for Medicare or as a supplement to Medicare Advantage Plans established under <br/>
<a id="pl.17.12"></a><var>17.12</var>Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage <br/>
<a id="pl.17.13"></a><var>17.13</var>plans established under Medicare Part C, outpatient prescription drug plans established <br/>
<a id="pl.17.14"></a><var>17.14</var>under Medicare Part D, or any health care prepayment plan that provides benefits under an <br/>
<a id="pl.17.15"></a><var>17.15</var>agreement under section 1833(a)(1)(A) of the Social Security Act.<br/>
<br/>
<a id="bill.0.26.0"></a><a id="pl.17.16"></a><var>17.16</var>    Sec. 26. Minnesota Statutes 2008, section 62A.31, subdivision 1, is amended to read:<br/>
<a id="pl.17.17"></a><var>17.17</var>    Subdivision 1. <b>Policy requirements.</b> No individual or group policy, certificate, <br/>
<a id="pl.17.18"></a><var>17.18</var>subscriber contract issued by a health service plan corporation regulated under chapter <br/>
<a id="pl.17.19"></a><var>17.19</var>62C, or other evidence of accident and health insurance the effect or purpose of which <br/>
<a id="pl.17.20"></a><var>17.20</var>is to supplement Medicare coverage, including to supplement coverage under Medicare <br/>
<a id="pl.17.21"></a><var>17.21</var>Advantage Plans established under Medicare Part C, issued or delivered in this state <br/>
<a id="pl.17.22"></a><var>17.22</var>or offered to a resident of this state shall be sold or issued to an individual covered by <br/>
<a id="pl.17.23"></a><var>17.23</var>Medicare unless the requirements in subdivisions 1a to 1u are met.<br/>
<br/>
<a id="bill.0.27.0"></a><a id="pl.17.24"></a><var>17.24</var>    Sec. 27. Minnesota Statutes 2008, section 62A.31, is amended by adding a subdivision <br/>
<a id="pl.17.25"></a><var>17.25</var>to read:<br/>
<a id="pl.17.26"></a><var>17.26</var>    Subd. 8. <b>Prohibition against use of genetic information and requests for genetic </b><br/>
<a id="pl.17.27"></a><var>17.27</var><b>information.</b> This subdivision applies to all policies with policy years beginning on or <br/>
<a id="pl.17.28"></a><var>17.28</var>after May 21, 2009.<br/>
<a id="pl.17.29"></a><var>17.29</var>    (a) An issuer of a Medicare supplement policy or certificate:<br/>
<a id="pl.17.30"></a><var>17.30</var>    (1) shall not deny or condition the issuance or effectiveness of the policy or <br/>
<a id="pl.17.31"></a><var>17.31</var>certificate, including the imposition of any exclusion of benefits under the policy based <br/>
<a id="pl.17.32"></a><var>17.32</var>on a preexisting condition, on the basis of the genetic information with respect to such <br/>
<a id="pl.17.33"></a><var>17.33</var>individual; and<br/>
<a id="pl.18.1"></a><var>18.1</var>    (2) shall not discriminate in the pricing of the policy or certificate, including the <br/>
<a id="pl.18.2"></a><var>18.2</var>adjustment of premium rates, of an individual on the basis of the genetic information <br/>
<a id="pl.18.3"></a><var>18.3</var>with respect to such individual.<br/>
<a id="pl.18.4"></a><var>18.4</var>    (b) Nothing in paragraph (a) shall be construed to limit the ability of an issuer, to the <br/>
<a id="pl.18.5"></a><var>18.5</var>extent otherwise permitted by law, from:<br/>
<a id="pl.18.6"></a><var>18.6</var>    (1) denying or conditioning the issuance or effectiveness of the policy or certificate <br/>
<a id="pl.18.7"></a><var>18.7</var>or increasing the premium for a group based on the manifestation of a disease or disorder <br/>
<a id="pl.18.8"></a><var>18.8</var>of an insured or applicant; or<br/>
<a id="pl.18.9"></a><var>18.9</var>    (2) increasing the premium for any policy issued to an individual based on the <br/>
<a id="pl.18.10"></a><var>18.10</var>manifestation of a disease or disorder of an individual who is covered under the policy. <br/>
<a id="pl.18.11"></a><var>18.11</var>In such case, the manifestation of a disease or disorder in one individual cannot also <br/>
<a id="pl.18.12"></a><var>18.12</var>be used as genetic information about other group members and to further increase the <br/>
<a id="pl.18.13"></a><var>18.13</var>premium for the group.<br/>
<a id="pl.18.14"></a><var>18.14</var>    (c) An issuer of a Medicare supplement policy or certificate shall not            request or <br/>
<a id="pl.18.15"></a><var>18.15</var>require an individual or a family member of such individual to undergo a genetic test.<br/>
<a id="pl.18.16"></a><var>18.16</var>    (d) Paragraph (c) shall not be construed to preclude an issuer of a Medicare <br/>
<a id="pl.18.17"></a><var>18.17</var>supplement policy or certificate from obtaining and using the results of a genetic test in <br/>
<a id="pl.18.18"></a><var>18.18</var>making a determination regarding payment, as defined for the purposes of applying the <br/>
<a id="pl.18.19"></a><var>18.19</var>regulations promulgated under Part C of title XI and section 264 of the Health Insurance <br/>
<a id="pl.18.20"></a><var>18.20</var>Portability and Accountability Act of 1996 as they may be revised from time to time, <br/>
<a id="pl.18.21"></a><var>18.21</var>and consistent with paragraph (a).<br/>
<a id="pl.18.22"></a><var>18.22</var>    (e) For purposes of carrying out paragraph (d), an issuer of a Medicare supplement <br/>
<a id="pl.18.23"></a><var>18.23</var>policy or certificate may request only the minimum amount of information necessary to <br/>
<a id="pl.18.24"></a><var>18.24</var>accomplish the intended purpose.<br/>
<a id="pl.18.25"></a><var>18.25</var>    (f) Notwithstanding paragraph (c), an issuer of a Medicare supplement policy may <br/>
<a id="pl.18.26"></a><var>18.26</var>request, but not require, that an individual or a family member of such individual undergo <br/>
<a id="pl.18.27"></a><var>18.27</var>a genetic test if each of the following conditions are met:<br/>
<a id="pl.18.28"></a><var>18.28</var>    (1) The request is made pursuant to research that complies with Code of Federal <br/>
<a id="pl.18.29"></a><var>18.29</var>Regulations title 45, part 46, or equivalent federal regulations, and any applicable state or <br/>
<a id="pl.18.30"></a><var>18.30</var>local law or regulations for the protection of human subjects in research.<br/>
<a id="pl.18.31"></a><var>18.31</var>    (2) The issuer clearly indicates to each individual, or in the case of a minor child, to <br/>
<a id="pl.18.32"></a><var>18.32</var>the legal guardian of such child, to whom the request is made that:<br/>
<a id="pl.18.33"></a><var>18.33</var>    (i) compliance with the request is voluntary; and<br/>
<a id="pl.18.34"></a><var>18.34</var>    (ii) noncompliance will have no effect on enrollment status or premium or <br/>
<a id="pl.18.35"></a><var>18.35</var>contribution amounts.<br/>
<a id="pl.19.1"></a><var>19.1</var>    (3) No genetic information collected or acquired under this paragraph shall be used <br/>
<a id="pl.19.2"></a><var>19.2</var>for underwriting, determination of eligibility to enroll or maintain enrollment status, <br/>
<a id="pl.19.3"></a><var>19.3</var>premium rates, or the issuance, renewal, or replacement of a policy or certificate.<br/>
<a id="pl.19.4"></a><var>19.4</var>    (4) The issuer notifies the secretary in writing that the issuer is conducting activities <br/>
<a id="pl.19.5"></a><var>19.5</var>pursuant to the exception provided for under this paragraph, including a description of <br/>
<a id="pl.19.6"></a><var>19.6</var>the activities conducted.<br/>
<a id="pl.19.7"></a><var>19.7</var>    (5) The issuer complies with such other conditions as the secretary may by regulation <br/>
<a id="pl.19.8"></a><var>19.8</var>require for activities under this paragraph.<br/>
<a id="pl.19.9"></a><var>19.9</var>    (g) An issuer of a Medicare supplement policy or certificate shall not request, <br/>
<a id="pl.19.10"></a><var>19.10</var>require, or purchase genetic information for underwriting purposes.<br/>
<a id="pl.19.11"></a><var>19.11</var>    (h) An issuer of a Medicare supplement policy or certificate shall not request, <br/>
<a id="pl.19.12"></a><var>19.12</var>require, or purchase genetic information with respect to any individual prior to such <br/>
<a id="pl.19.13"></a><var>19.13</var>individual's enrollment under the policy in connection with such enrollment.<br/>
<a id="pl.19.14"></a><var>19.14</var>    (i) An issuer of a Medicare supplement policy or certificate that obtains genetic <br/>
<a id="pl.19.15"></a><var>19.15</var>information incidental to the requesting, requiring, or purchasing of other information <br/>
<a id="pl.19.16"></a><var>19.16</var>concerning any individual, such request, requirement, or purchase shall not be considered <br/>
<a id="pl.19.17"></a><var>19.17</var>a violation of paragraph (h) if such request, requirement, or purchase is not in violation of <br/>
<a id="pl.19.18"></a><var>19.18</var>paragraph (g).<br/>
<a id="pl.19.19"></a><var>19.19</var>    (j) For purposes of this subdivision only:<br/>
<a id="pl.19.20"></a><var>19.20</var>    (1) "Family member" means, with respect to an individual, any other individual who <br/>
<a id="pl.19.21"></a><var>19.21</var>is a first-degree, second-degree, third-degree, or fourth-degree relative of such individual.<br/>
<a id="pl.19.22"></a><var>19.22</var>    (2) "Genetic information" means, with respect to any individual, information about <br/>
<a id="pl.19.23"></a><var>19.23</var>such individual's genetic tests, the genetic test of family members of such individual, <br/>
<a id="pl.19.24"></a><var>19.24</var>and the manifestation of a disease or disorder in family members of such individual. <br/>
<a id="pl.19.25"></a><var>19.25</var>Such terms includes, with respect to any individual, any request for, or receipt of, genetic <br/>
<a id="pl.19.26"></a><var>19.26</var>services, or participation in clinical research that includes genetic services, by such <br/>
<a id="pl.19.27"></a><var>19.27</var>individual or any family member of such individual. Any reference to genetic information <br/>
<a id="pl.19.28"></a><var>19.28</var>concerning an individual or family member of an individual who is a pregnant woman, <br/>
<a id="pl.19.29"></a><var>19.29</var>includes genetic information of any fetus carried by such pregnant woman, or with respect <br/>
<a id="pl.19.30"></a><var>19.30</var>to an individual or family member utilizing reproductive technology, includes genetic <br/>
<a id="pl.19.31"></a><var>19.31</var>information of any embryo legally held by an individual or family member. The term <br/>
<a id="pl.19.32"></a><var>19.32</var>genetic information does not include information about the sex or age of any individual.<br/>
<a id="pl.19.33"></a><var>19.33</var>    (3) "Genetic services" means a genetic test or genetic counseling, including <br/>
<a id="pl.19.34"></a><var>19.34</var>obtaining, interpreting, or assessing genetic information or genetic education.<br/>
<a id="pl.19.35"></a><var>19.35</var>    (4) "Genetic test" means an analysis of human DNA, RNA, chromosomes, proteins, <br/>
<a id="pl.19.36"></a><var>19.36</var>or metabolites, that detect genotypes, mutations, or chromosomal changes. The term <br/>
<a id="pl.20.1"></a><var>20.1</var>genetic test does not mean an analysis of proteins or metabolites that does not detect <br/>
<a id="pl.20.2"></a><var>20.2</var>genotypes, mutations, or chromosomal changes; or an analysis of proteins or metabolites <br/>
<a id="pl.20.3"></a><var>20.3</var>that is directly related to a manifested disease, disorder, or pathological condition that <br/>
<a id="pl.20.4"></a><var>20.4</var>could reasonably be detected by a health care professional with appropriate training and <br/>
<a id="pl.20.5"></a><var>20.5</var>expertise in the field of medicine involved.<br/>
<a id="pl.20.6"></a><var>20.6</var>    (5) "Issuer of a Medicare supplement policy or certificate" includes a third-party <br/>
<a id="pl.20.7"></a><var>20.7</var>administrator or other person acting for or on behalf of such issuer.<br/>
<a id="pl.20.8"></a><var>20.8</var>    (6) "Underwriting purposes" means:<br/>
<a id="pl.20.9"></a><var>20.9</var>    (i) rules for, or determination of, eligibility including enrollment and continued <br/>
<a id="pl.20.10"></a><var>20.10</var>eligibility, for benefits under the policy;<br/>
<a id="pl.20.11"></a><var>20.11</var>    (ii) the computation of premium or contribution amounts under the policy;<br/>
<a id="pl.20.12"></a><var>20.12</var>    (iii) the application of any preexisting condition exclusion under the policy; and<br/>
<a id="pl.20.13"></a><var>20.13</var>    (iv) other activities related to the creation, renewal, or replacement of a contract of <br/>
<a id="pl.20.14"></a><var>20.14</var>health insurance or health benefits.<br/>
<br/>
<a id="bill.0.28.0"></a><a id="pl.20.15"></a><var>20.15</var>    Sec. 28. Minnesota Statutes 2008, section 62A.315, is amended to read:<br/>
<a id="pl.20.16"></a><var>20.16</var><b>62A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; </b><br/>
<a id="pl.20.17"></a><var>20.17</var><b>COVERAGE.</b><br/>
<a id="pl.20.18"></a><var>20.18</var>The extended basic Medicare supplement plan must have a level of coverage so that <br/>
<a id="pl.20.19"></a><var>20.19</var>it will be certified as a qualified plan pursuant to section 
         <statute_ref>62E.07</statute_ref>, and will provide:<br/>
<a id="pl.20.20"></a><var>20.20</var>(1) coverage for all of the Medicare Part A inpatient hospital deductible and <br/>
<a id="pl.20.21"></a><var>20.21</var>coinsurance amounts, and 100 percent of all Medicare Part A eligible expenses for <br/>
<a id="pl.20.22"></a><var>20.22</var>hospitalization not covered by Medicare;<br/>
<a id="pl.20.23"></a><var>20.23</var>(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses <br/>
<a id="pl.20.24"></a><var>20.24</var>for the calendar year incurred for skilled nursing facility care;<br/>
<a id="pl.20.25"></a><var>20.25</var>(3) coverage for the coinsurance amount or in the case of hospital outpatient <br/>
<a id="pl.20.26"></a><var>20.26</var>department services paid under a prospective payment system, the co-payment amount, of <br/>
<a id="pl.20.27"></a><var>20.27</var>Medicare eligible expenses under Medicare Part B regardless of hospital confinement, and <br/>
<a id="pl.20.28"></a><var>20.28</var>the Medicare Part B deductible amount;<br/>
<a id="pl.20.29"></a><var>20.29</var>(4) 80 percent of the usual and customary hospital and medical expenses and <br/>
<a id="pl.20.30"></a><var>20.30</var>supplies described in section 
         <statute_ref>62E.06, subdivision 1</statute_ref>, not to exceed any charge limitation <br/>
<a id="pl.20.31"></a><var>20.31</var>established by the Medicare program or state law, the usual and customary hospital <br/>
<a id="pl.20.32"></a><var>20.32</var>and medical expenses and supplies, described in section 
         <statute_ref>62E.06, subdivision 1</statute_ref>, while <br/>
<a id="pl.20.33"></a><var>20.33</var>in a foreign country; and prescription drug expenses, not covered by Medicare. An <br/>
<a id="pl.20.34"></a><var>20.34</var>outpatient prescription drug benefit must not be included for sale or issuance in a Medicare <br/>
<a id="pl.20.35"></a><var>20.35</var>supplement policy or certificate issued on or after January 1, 2006;<br/>
<a id="pl.21.1"></a><var>21.1</var>(5) coverage for the reasonable cost of the first three pints of blood, or equivalent <br/>
<a id="pl.21.2"></a><var>21.2</var>quantities of packed red blood cells as defined under federal regulations under Medicare <br/>
<a id="pl.21.3"></a><var>21.3</var>Parts A and B, unless replaced in accordance with federal regulations;<br/>
<a id="pl.21.4"></a><var>21.4</var>(6) 100 percent of the cost of immunizations not otherwise covered under Part <br/>
<a id="pl.21.5"></a><var>21.5</var>D of the Medicare program and routine screening procedures for cancer, including <br/>
<a id="pl.21.6"></a><var>21.6</var>mammograms and pap smears;<br/>
<a id="pl.21.7"></a><var>21.7</var>(7) preventive medical care benefit: coverage for the following preventive health <br/>
<a id="pl.21.8"></a><var>21.8</var>services not covered by Medicare:<br/>
<a id="pl.21.9"></a><var>21.9</var>(i) an annual clinical preventive medical history and physical examination that may <br/>
<a id="pl.21.10"></a><var>21.10</var>include tests and services from clause (ii) and patient education to address preventive <br/>
<a id="pl.21.11"></a><var>21.11</var>health care measures;<br/>
<a id="pl.21.12"></a><var>21.12</var>(ii) preventive screening tests or preventive services, the selection and frequency of <br/>
<a id="pl.21.13"></a><var>21.13</var>which is determined to be medically appropriate by the attending physician.<br/>
<a id="pl.21.14"></a><var>21.14</var>Reimbursement shall be for the actual charges up to 100 percent of the <br/>
<a id="pl.21.15"></a><var>21.15</var>Medicare-approved amount for each service as if Medicare were to cover the service as <br/>
<a id="pl.21.16"></a><var>21.16</var>identified in American Medical Association current procedural terminology (AMA CPT) <br/>
<a id="pl.21.17"></a><var>21.17</var>codes to a maximum of $120 annually under this benefit. This benefit shall not include <br/>
<a id="pl.21.18"></a><var>21.18</var>payment for any procedure covered by Medicare;<br/>
<a id="pl.21.19"></a><var>21.19</var>(8) at-home recovery benefit: coverage for services to provide short-term at-home <br/>
<a id="pl.21.20"></a><var>21.20</var>assistance with activities of daily living for those recovering from an illness, injury, or <br/>
<a id="pl.21.21"></a><var>21.21</var>surgery:<br/>
<a id="pl.21.22"></a><var>21.22</var>(i) for purposes of this benefit, the following definitions shall apply:<br/>
<a id="pl.21.23"></a><var>21.23</var>(A) "activities of daily living" include, but are not limited to, bathing, dressing, <br/>
<a id="pl.21.24"></a><var>21.24</var>personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally <br/>
<a id="pl.21.25"></a><var>21.25</var>self-administered, and changing bandages or other dressings;<br/>
<a id="pl.21.26"></a><var>21.26</var>(B) "care provider" means a duly qualified or licensed home health aide/homemaker, <br/>
<a id="pl.21.27"></a><var>21.27</var>personal care aide, or nurse provided through a licensed home health care agency or <br/>
<a id="pl.21.28"></a><var>21.28</var>referred by a licensed referral agency or licensed nurses registry;<br/>
<a id="pl.21.29"></a><var>21.29</var>(C) "home" means a place used by the insured as a place of residence, provided <br/>
<a id="pl.21.30"></a><var>21.30</var>that the place would qualify as a residence for home health care services covered by <br/>
<a id="pl.21.31"></a><var>21.31</var>Medicare. A hospital or skilled nursing facility shall not be considered the insured's <br/>
<a id="pl.21.32"></a><var>21.32</var>place of residence;<br/>
<a id="pl.21.33"></a><var>21.33</var>(D) "at-home recovery visit" means the period of a visit required to provide at-home <br/>
<a id="pl.21.34"></a><var>21.34</var>recovery care, without limit on the duration of the visit, except each consecutive four <br/>
<a id="pl.21.35"></a><var>21.35</var>hours in a 24-hour period of services provided by a care provider is one visit;<br/>
<a id="pl.21.36"></a><var>21.36</var>(ii) coverage requirements and limitations:<br/>
<a id="pl.22.1"></a><var>22.1</var>(A) at-home recovery services provided must be primarily services that assist in <br/>
<a id="pl.22.2"></a><var>22.2</var>activities of daily living;<br/>
<a id="pl.22.3"></a><var>22.3</var>(B) the insured's attending physician must certify that the specific type and frequency <br/>
<a id="pl.22.4"></a><var>22.4</var>of at-home recovery services are necessary because of a condition for which a home care <br/>
<a id="pl.22.5"></a><var>22.5</var>plan of treatment was approved by Medicare;<br/>
<a id="pl.22.6"></a><var>22.6</var>(C) coverage is limited to:<br/>
<a id="pl.22.7"></a><var>22.7</var>(I) no more than the number and type of at-home recovery visits certified as <br/>
<a id="pl.22.8"></a><var>22.8</var>medically necessary by the insured's attending physician. The total number of at-home <br/>
<a id="pl.22.9"></a><var>22.9</var>recovery visits shall not exceed the number of Medicare-approved home health care visits <br/>
<a id="pl.22.10"></a><var>22.10</var>under a Medicare-approved home care plan of treatment;<br/>
<a id="pl.22.11"></a><var>22.11</var>(II) the actual charges for each visit up to a maximum reimbursement of $100 per <br/>
<a id="pl.22.12"></a><var>22.12</var>visit;<br/>
<a id="pl.22.13"></a><var>22.13</var>(III) $4,000 per calendar year;<br/>
<a id="pl.22.14"></a><var>22.14</var>(IV) seven visits in any one week;<br/>
<a id="pl.22.15"></a><var>22.15</var>(V) care furnished on a visiting basis in the insured's home;<br/>
<a id="pl.22.16"></a><var>22.16</var>(VI) services provided by a care provider as defined in this section;<br/>
<a id="pl.22.17"></a><var>22.17</var>(VII) at-home recovery visits while the insured is covered under the policy or <br/>
<a id="pl.22.18"></a><var>22.18</var>certificate and not otherwise excluded;<br/>
<a id="pl.22.19"></a><var>22.19</var>(VIII) at-home recovery visits received during the period the insured is receiving <br/>
<a id="pl.22.20"></a><var>22.20</var>Medicare-approved home care services or no more than eight weeks after the service date <br/>
<a id="pl.22.21"></a><var>22.21</var>of the last Medicare-approved home health care visit;<br/>
<a id="pl.22.22"></a><var>22.22</var>(iii) coverage is excluded for:<br/>
<a id="pl.22.23"></a><var>22.23</var>(A) home care visits paid for by Medicare or other government programs; and<br/>
<a id="pl.22.24"></a><var>22.24</var>(B) care provided by unpaid volunteers or providers who are not care providers.<br/>
<a id="pl.22.25"></a><var>22.25</var>(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite <br/>
<a id="pl.22.26"></a><var>22.26</var>care expenses; and<br/>
<a id="pl.22.27"></a><var>22.27</var>(9) coverage for cost sharing for Medicare Part A or B home health care services <br/>
<a id="pl.22.28"></a><var>22.28</var>and medical supplies.<br/>
<br/>
<a id="bill.0.29.0"></a><a id="pl.22.29"></a><var>22.29</var>    Sec. 29. Minnesota Statutes 2008, section 62A.316, is amended to read:<br/>
<a id="pl.22.30"></a><var>22.30</var><b>62A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.</b><br/>
<a id="pl.22.31"></a><var>22.31</var>(a) The basic Medicare supplement plan must have a level of coverage that will <br/>
<a id="pl.22.32"></a><var>22.32</var>provide:<br/>
<a id="pl.22.33"></a><var>22.33</var>(1) coverage for all of the Medicare Part A inpatient hospital coinsurance amounts, <br/>
<a id="pl.22.34"></a><var>22.34</var>and 100 percent of all Medicare part A eligible expenses for hospitalization not covered <br/>
<a id="pl.22.35"></a><var>22.35</var>by Medicare, after satisfying the Medicare Part A deductible;<br/>
<a id="pl.23.1"></a><var>23.1</var>(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses <br/>
<a id="pl.23.2"></a><var>23.2</var>for the calendar year incurred for skilled nursing facility care;<br/>
<a id="pl.23.3"></a><var>23.3</var>(3) coverage for the coinsurance amount, or in the case of outpatient department <br/>
<a id="pl.23.4"></a><var>23.4</var>services paid under a prospective payment system, the co-payment amount, of Medicare <br/>
<a id="pl.23.5"></a><var>23.5</var>eligible expenses under Medicare Part B regardless of hospital confinement, subject to <br/>
<a id="pl.23.6"></a><var>23.6</var>the Medicare Part B deductible amount;<br/>
<a id="pl.23.7"></a><var>23.7</var>(4) 80 percent of the hospital and medical expenses and supplies incurred during <br/>
<a id="pl.23.8"></a><var>23.8</var>travel outside the United States as a result of a medical emergency;<br/>
<a id="pl.23.9"></a><var>23.9</var>(5) coverage for the reasonable cost of the first three pints of blood, or equivalent <br/>
<a id="pl.23.10"></a><var>23.10</var>quantities of packed red blood cells as defined under federal regulations under Medicare <br/>
<a id="pl.23.11"></a><var>23.11</var>Parts A and B, unless replaced in accordance with federal regulations;<br/>
<a id="pl.23.12"></a><var>23.12</var>(6) 100 percent of the cost of immunizations not otherwise covered under Part D of <br/>
<a id="pl.23.13"></a><var>23.13</var>the Medicare program and routine screening procedures for cancer screening including <br/>
<a id="pl.23.14"></a><var>23.14</var>mammograms and pap smears; and<br/>
<a id="pl.23.15"></a><var>23.15</var>(7) 80 percent of coverage for all physician prescribed medically appropriate and <br/>
<a id="pl.23.16"></a><var>23.16</var>necessary equipment and supplies used in the management and treatment of diabetes <br/>
<a id="pl.23.17"></a><var>23.17</var>not otherwise covered under Part D of the Medicare program. Coverage must include <br/>
<a id="pl.23.18"></a><var>23.18</var>persons with gestational, type I, or type II diabetes. Coverage under this clause is subject <br/>
<a id="pl.23.19"></a><var>23.19</var>to section 
         <statute_ref>62A.3093</statute_ref>, subdivision 2.; <br/>
<a id="pl.23.20"></a><var>23.20</var>(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite <br/>
<a id="pl.23.21"></a><var>23.21</var>care expenses; and<br/>
<a id="pl.23.22"></a><var>23.22</var>(9) coverage for cost sharing for Medicare Part A or B home health care services and <br/>
<a id="pl.23.23"></a><var>23.23</var>medical supplies subject to the Medicare Part B deductible amount.<br/>
<a id="pl.23.24"></a><var>23.24</var>(b) Only The following optional benefit riders may be added to must be offered <br/>
<a id="pl.23.25"></a><var>23.25</var>with this plan:<br/>
<a id="pl.23.26"></a><var>23.26</var>(1) coverage for all of the Medicare Part A inpatient hospital deductible amount;<br/>
<a id="pl.23.27"></a><var>23.27</var>(2) a minimum of 80 percent of eligible medical expenses and supplies not covered <br/>
<a id="pl.23.28"></a><var>23.28</var>by Medicare Part B 100 percent of the Medicare Part B excess charges coverage for <br/>
<a id="pl.23.29"></a><var>23.29</var>all of the difference between the actual Medicare Part B charges as billed, not to <br/>
<a id="pl.23.30"></a><var>23.30</var>exceed any charge limitation established by the Medicare program or state law, and the <br/>
<a id="pl.23.31"></a><var>23.31</var>Medicare-approved Part B charge;<br/>
<a id="pl.23.32"></a><var>23.32</var>(3) coverage for all of the Medicare Part B annual deductible; and<br/>
<a id="pl.23.33"></a><var>23.33</var>(4) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and <br/>
<a id="pl.23.34"></a><var>23.34</var>customary prescription drug expenses. An outpatient prescription drug benefit must not <br/>
<a id="pl.23.35"></a><var>23.35</var>be included for sale or issuance in a Medicare policy or certificate issued on or after <br/>
<a id="pl.23.36"></a><var>23.36</var>January 1, 2006;<br/>
<a id="pl.24.1"></a><var>24.1</var>    (5) (4) preventive medical care benefit coverage for the following preventative <br/>
<a id="pl.24.2"></a><var>24.2</var>health services not covered by Medicare:<br/>
<a id="pl.24.3"></a><var>24.3</var>(i) an annual clinical preventive medical history and physical examination that may <br/>
<a id="pl.24.4"></a><var>24.4</var>include tests and services from clause (ii) and patient education to address preventive <br/>
<a id="pl.24.5"></a><var>24.5</var>health care measures;<br/>
<a id="pl.24.6"></a><var>24.6</var>(ii) preventive screening tests or preventive services, the selection and frequency of <br/>
<a id="pl.24.7"></a><var>24.7</var>which is determined to be medically appropriate by the attending physician.<br/>
<a id="pl.24.8"></a><var>24.8</var>Reimbursement shall be for the actual charges up to 100 percent of the <br/>
<a id="pl.24.9"></a><var>24.9</var>Medicare-approved amount for each service, as if Medicare were to cover the service as <br/>
<a id="pl.24.10"></a><var>24.10</var>identified in American Medical Association current procedural terminology (AMA CPT) <br/>
<a id="pl.24.11"></a><var>24.11</var>codes, to a maximum of $120 annually under this benefit. This benefit shall not include <br/>
<a id="pl.24.12"></a><var>24.12</var>payment for a procedure covered by Medicare;.<br/>
<a id="pl.24.13"></a><var>24.13</var>(6) coverage for services to provide short-term at-home assistance with activities of <br/>
<a id="pl.24.14"></a><var>24.14</var>daily living for those recovering from an illness, injury, or surgery:<br/>
<a id="pl.24.15"></a><var>24.15</var>(i) For purposes of this benefit, the following definitions apply:<br/>
<a id="pl.24.16"></a><var>24.16</var>(A) "activities of daily living" include, but are not limited to, bathing, dressing, <br/>
<a id="pl.24.17"></a><var>24.17</var>personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally <br/>
<a id="pl.24.18"></a><var>24.18</var>self-administered, and changing bandages or other dressings;<br/>
<a id="pl.24.19"></a><var>24.19</var>(B) "care provider" means a duly qualified or licensed home health aide/homemaker, <br/>
<a id="pl.24.20"></a><var>24.20</var>personal care aid, or nurse provided through a licensed home health care agency or <br/>
<a id="pl.24.21"></a><var>24.21</var>referred by a licensed referral agency or licensed nurses registry;<br/>
<a id="pl.24.22"></a><var>24.22</var>(C) "home" means a place used by the insured as a place of residence, provided <br/>
<a id="pl.24.23"></a><var>24.23</var>that the place would qualify as a residence for home health care services covered by <br/>
<a id="pl.24.24"></a><var>24.24</var>Medicare. A hospital or skilled nursing facility shall not be considered the insured's <br/>
<a id="pl.24.25"></a><var>24.25</var>place of residence;<br/>
<a id="pl.24.26"></a><var>24.26</var>(D) "at-home recovery visit" means the period of a visit required to provide at-home <br/>
<a id="pl.24.27"></a><var>24.27</var>recovery care, without limit on the duration of the visit, except each consecutive four <br/>
<a id="pl.24.28"></a><var>24.28</var>hours in a 24-hour period of services provided by a care provider is one visit;<br/>
<a id="pl.24.29"></a><var>24.29</var>(ii) Coverage requirements and limitations:<br/>
<a id="pl.24.30"></a><var>24.30</var>(A) at-home recovery services provided must be primarily services that assist in <br/>
<a id="pl.24.31"></a><var>24.31</var>activities of daily living;<br/>
<a id="pl.24.32"></a><var>24.32</var>(B) the insured's attending physician must certify that the specific type and frequency <br/>
<a id="pl.24.33"></a><var>24.33</var>of at-home recovery services are necessary because of a condition for which a home care <br/>
<a id="pl.24.34"></a><var>24.34</var>plan of treatment was approved by Medicare;<br/>
<a id="pl.24.35"></a><var>24.35</var>(C) coverage is limited to:<br/>
<a id="pl.25.1"></a><var>25.1</var>(I) no more than the number and type of at-home recovery visits certified as <br/>
<a id="pl.25.2"></a><var>25.2</var>necessary by the insured's attending physician. The total number of at-home recovery <br/>
<a id="pl.25.3"></a><var>25.3</var>visits shall not exceed the number of Medicare-approved home care visits under a <br/>
<a id="pl.25.4"></a><var>25.4</var>Medicare-approved home care plan of treatment;<br/>
<a id="pl.25.5"></a><var>25.5</var>(II) the actual charges for each visit up to a maximum reimbursement of $40 per visit;<br/>
<a id="pl.25.6"></a><var>25.6</var>(III) $1,600 per calendar year;<br/>
<a id="pl.25.7"></a><var>25.7</var>(IV) seven visits in any one week;<br/>
<a id="pl.25.8"></a><var>25.8</var>(V) care furnished on a visiting basis in the insured's home;<br/>
<a id="pl.25.9"></a><var>25.9</var>(VI) services provided by a care provider as defined in this section;<br/>
<a id="pl.25.10"></a><var>25.10</var>(VII) at-home recovery visits while the insured is covered under the policy or <br/>
<a id="pl.25.11"></a><var>25.11</var>certificate and not otherwise excluded;<br/>
<a id="pl.25.12"></a><var>25.12</var>(VIII) at-home recovery visits received during the period the insured is receiving <br/>
<a id="pl.25.13"></a><var>25.13</var>Medicare-approved home care services or no more than eight weeks after the service date <br/>
<a id="pl.25.14"></a><var>25.14</var>of the last Medicare-approved home health care visit;<br/>
<a id="pl.25.15"></a><var>25.15</var>(iii) Coverage is excluded for:<br/>
<a id="pl.25.16"></a><var>25.16</var>(A) home care visits paid for by Medicare or other government programs; and<br/>
<a id="pl.25.17"></a><var>25.17</var>(B) care provided by family members, unpaid volunteers, or providers who are <br/>
<a id="pl.25.18"></a><var>25.18</var>not care providers;<br/>
<a id="pl.25.19"></a><var>25.19</var>(7) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and <br/>
<a id="pl.25.20"></a><var>25.20</var>customary prescription drug expenses to a maximum of $1,200 paid by the issuer annually <br/>
<a id="pl.25.21"></a><var>25.21</var>under this benefit. An issuer of Medicare supplement insurance policies that elects to <br/>
<a id="pl.25.22"></a><var>25.22</var>offer this benefit rider shall also make available coverage that contains the rider specified <br/>
<a id="pl.25.23"></a><var>25.23</var>in clause (4). An outpatient prescription drug benefit must not be included for sale or <br/>
<a id="pl.25.24"></a><var>25.24</var>issuance in a Medicare policy or certificate issued on or after January 1, 2006.<br/>
<br/>
<a id="bill.0.30.0"></a><a id="pl.25.25"></a><var>25.25</var>    Sec. 30. <b>[62A.3163] MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT </b><br/>
<a id="pl.25.26"></a><var>25.26</var><b>PART A DEDUCTIBLE COVERAGE.</b><br/>
<a id="pl.25.27"></a><var>25.27</var>The Medicare supplement plan with 50 percent Part A deductible coverage must <br/>
<a id="pl.25.28"></a><var>25.28</var>have a level of coverage that will provide:<br/>
<a id="pl.25.29"></a><var>25.29</var>(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for <br/>
<a id="pl.25.30"></a><var>25.30</var>365 days after Medicare benefits end;<br/>
<a id="pl.25.31"></a><var>25.31</var>(2) coverage for 50 percent of the Medicare Part A inpatient hospital deductible <br/>
<a id="pl.25.32"></a><var>25.32</var>amount per benefit period;<br/>
<a id="pl.25.33"></a><var>25.33</var>(3) coverage for the coinsurance amount for each day used from the 21st through <br/>
<a id="pl.25.34"></a><var>25.34</var>the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible <br/>
<a id="pl.25.35"></a><var>25.35</var>under Medicare Part A;<br/>
<a id="pl.26.1"></a><var>26.1</var>(4) coverage for cost sharing for all Medicare Part A eligible hospice and respite <br/>
<a id="pl.26.2"></a><var>26.2</var>care expenses;<br/>
<a id="pl.26.3"></a><var>26.3</var>(5) coverage under Medicare Part A or B for the reasonable cost of the first three <br/>
<a id="pl.26.4"></a><var>26.4</var>pints of blood, or equivalent quantities of packed red blood cells, as defined under federal <br/>
<a id="pl.26.5"></a><var>26.5</var>regulations;<br/>
<a id="pl.26.6"></a><var>26.6</var>(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare <br/>
<a id="pl.26.7"></a><var>26.7</var>Part B, after the policyholder pays the Medicare Part B deductible;<br/>
<a id="pl.26.8"></a><var>26.8</var>(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive <br/>
<a id="pl.26.9"></a><var>26.9</var>services and diagnostic procedures for cancer screening described in section 62A.30 after <br/>
<a id="pl.26.10"></a><var>26.10</var>the policyholder pays the Medicare Part B deductible;<br/>
<a id="pl.26.11"></a><var>26.11</var>(8) coverage of 80 percent of the hospital and medical expenses and supplies <br/>
<a id="pl.26.12"></a><var>26.12</var>incurred during travel outside of the United States as a result of a medical emergency; and<br/>
<a id="pl.26.13"></a><var>26.13</var>(9) coverage for 100 percent of the Medicare Part A or B home health care services <br/>
<a id="pl.26.14"></a><var>26.14</var>and medical supplies after the policyholder pays the Medicare Part B deductible.<br/>
<br/>
<a id="bill.0.31.0"></a><a id="pl.26.15"></a><var>26.15</var>    Sec. 31. <b>[62A.3164] MEDICARE SUPPLEMENT PLAN WITH $20 AND $50 </b><br/>
<a id="pl.26.16"></a><var>26.16</var><b>CO-PAYMENT MEDICARE PART B COVERAGE.</b><br/>
<a id="pl.26.17"></a><var>26.17</var>The Medicare supplement plan with $20 and $50 co-payment Medicare Part B <br/>
<a id="pl.26.18"></a><var>26.18</var>coverage must have a level of coverage that will provide:<br/>
<a id="pl.26.19"></a><var>26.19</var>(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for <br/>
<a id="pl.26.20"></a><var>26.20</var>365 days after Medicare benefits end;<br/>
<a id="pl.26.21"></a><var>26.21</var>(2) coverage for the Medicare Part A inpatient hospital deductible amount per <br/>
<a id="pl.26.22"></a><var>26.22</var>benefit period;<br/>
<a id="pl.26.23"></a><var>26.23</var>(3) coverage for the coinsurance amount for each day used from the 21st through <br/>
<a id="pl.26.24"></a><var>26.24</var>the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible <br/>
<a id="pl.26.25"></a><var>26.25</var>under Medicare Part A;<br/>
<a id="pl.26.26"></a><var>26.26</var>(4) coverage for the cost sharing for all Medicare Part A eligible hospice and respite <br/>
<a id="pl.26.27"></a><var>26.27</var>care expenses;<br/>
<a id="pl.26.28"></a><var>26.28</var>(5) coverage for Medicare Part A or B of the reasonable cost of the first three pints <br/>
<a id="pl.26.29"></a><var>26.29</var>of blood, or equivalent quantities of packed red blood cells, as defined under federal <br/>
<a id="pl.26.30"></a><var>26.30</var>regulations, unless replaced according to federal regulations;<br/>
<a id="pl.26.31"></a><var>26.31</var>(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare <br/>
<a id="pl.26.32"></a><var>26.32</var>Part B except for the lesser of $20 or the Medicare Part B coinsurance or co-payment <br/>
<a id="pl.26.33"></a><var>26.33</var>for each covered health care provider office visit and the lesser of $50 or the Medicare <br/>
<a id="pl.26.34"></a><var>26.34</var>Part B coinsurance or co-payment for each covered emergency room visit; however, this <br/>
<a id="pl.27.1"></a><var>27.1</var>co-payment shall be waived if the insured is admitted to any hospital and the emergency <br/>
<a id="pl.27.2"></a><var>27.2</var>visit is subsequently covered as a Medicare Part A expense;<br/>
<a id="pl.27.3"></a><var>27.3</var>(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive <br/>
<a id="pl.27.4"></a><var>27.4</var>services and diagnostic procedures for cancer screening described in section 62A.30 after <br/>
<a id="pl.27.5"></a><var>27.5</var>the policyholder pays the Medicare Part B deductible;<br/>
<a id="pl.27.6"></a><var>27.6</var>(8) coverage of 80 percent of the hospital and medical expenses and supplies <br/>
<a id="pl.27.7"></a><var>27.7</var>incurred during travel outside of the United States as a result of a medical emergency; and<br/>
<a id="pl.27.8"></a><var>27.8</var>(9) coverage for Medicare Part A or B home health care services and medical <br/>
<a id="pl.27.9"></a><var>27.9</var>supplies after the policyholder pays the Medicare Part B deductible.<br/>
<br/>
<a id="bill.0.32.0"></a><a id="pl.27.10"></a><var>27.10</var>    Sec. 32. <b>[62A.3165] MEDICARE SUPPLEMENT PLAN WITH HIGH </b><br/>
<a id="pl.27.11"></a><var>27.11</var><b>DEDUCTIBLE COVERAGE.</b><br/>
<a id="pl.27.12"></a><var>27.12</var>The Medicare supplement plan will pay 100 percent coverage upon payment of the <br/>
<a id="pl.27.13"></a><var>27.13</var>annual high deductible. The annual deductible shall consist of out-of-pocket expenses, <br/>
<a id="pl.27.14"></a><var>27.14</var>other than premiums, for services covered. This plan must have a level of coverage that <br/>
<a id="pl.27.15"></a><var>27.15</var>will provide:<br/>
<a id="pl.27.16"></a><var>27.16</var>(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for <br/>
<a id="pl.27.17"></a><var>27.17</var>365 days after Medicare benefits end;<br/>
<a id="pl.27.18"></a><var>27.18</var>(2) coverage for 100 percent of the Medicare Part A inpatient hospital deductible <br/>
<a id="pl.27.19"></a><var>27.19</var>amount per benefit period;<br/>
<a id="pl.27.20"></a><var>27.20</var>(3) coverage for 100 percent of the coinsurance amount for each day used from the <br/>
<a id="pl.27.21"></a><var>27.21</var>21st through the 100th day in a Medicare benefit period for post-hospital skilled nursing <br/>
<a id="pl.27.22"></a><var>27.22</var>care eligible under Medicare Part A;<br/>
<a id="pl.27.23"></a><var>27.23</var>(4) coverage for 100 percent of cost sharing for all Medicare Part A eligible <br/>
<a id="pl.27.24"></a><var>27.24</var>expenses and respite care;<br/>
<a id="pl.27.25"></a><var>27.25</var>(5) coverage for 100 percent, under Medicare Part A or B, of the reasonable cost of <br/>
<a id="pl.27.26"></a><var>27.26</var>the first three pints of blood, or equivalent quantities of packed red blood cells, as defined <br/>
<a id="pl.27.27"></a><var>27.27</var>under federal regulations, unless replaced according to federal regulations;<br/>
<a id="pl.27.28"></a><var>27.28</var>(6) except for coverage provided in this clause, coverage for 100 percent of the cost <br/>
<a id="pl.27.29"></a><var>27.29</var>sharing otherwise applicable under Medicare Part B;<br/>
<a id="pl.27.30"></a><var>27.30</var>(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive <br/>
<a id="pl.27.31"></a><var>27.31</var>services and diagnostic procedures for cancer screening described in section 62A.30 after <br/>
<a id="pl.27.32"></a><var>27.32</var>the policyholder pays the Medicare Part B deductible;<br/>
<a id="pl.27.33"></a><var>27.33</var>(8) coverage of 100 percent of the hospital and medical expenses and supplies <br/>
<a id="pl.27.34"></a><var>27.34</var>incurred during travel outside of the United States as a result of a medical emergency;<br/>
<a id="pl.28.1"></a><var>28.1</var>(9) coverage for 100 percent of Medicare Part A and B home health care services <br/>
<a id="pl.28.2"></a><var>28.2</var>and medical supplies; and<br/>
<a id="pl.28.3"></a><var>28.3</var>(10) the basis for the deductible shall be $1,860 and shall be adjusted annually from <br/>
<a id="pl.28.4"></a><var>28.4</var>2010 by the secretary of the United States Department of Health and Human Services to <br/>
<a id="pl.28.5"></a><var>28.5</var>reflect the change in the Consumer Price Index for all urban consumers for the 12-month <br/>
<a id="pl.28.6"></a><var>28.6</var>period ending with August of the preceding year, and rounded to the nearest multiple of <br/>
<a id="pl.28.7"></a><var>28.7</var>$10.<br/>
<br/>
<a id="bill.0.33.0"></a><a id="pl.28.8"></a><var>28.8</var>    Sec. 33. Minnesota Statutes 2008, section 62L.02, subdivision 26, is amended to read:<br/>
<a id="pl.28.9"></a><var>28.9</var>    Subd. 26. <b>Small employer.</b> (a) "Small employer" means, with respect to a calendar <br/>
<a id="pl.28.10"></a><var>28.10</var>year and a plan year, a person, firm, corporation, partnership, association, or other entity <br/>
<a id="pl.28.11"></a><var>28.11</var>actively engaged in business in Minnesota, including a political subdivision of the state, <br/>
<a id="pl.28.12"></a><var>28.12</var>that employed an average of no fewer than two nor more than 50 current employees on <br/>
<a id="pl.28.13"></a><var>28.13</var>business days during the preceding calendar year and that employs at least two current <br/>
<a id="pl.28.14"></a><var>28.14</var>employees on the first day of the plan year. If an employer has only one eligible employee <br/>
<a id="pl.28.15"></a><var>28.15</var>who has not waived coverage, the sale of a health plan to or for that eligible employee <br/>
<a id="pl.28.16"></a><var>28.16</var>is not a sale to a small employer and is not subject to this chapter and may be treated as <br/>
<a id="pl.28.17"></a><var>28.17</var>the sale of an individual health plan. A small employer plan may be offered through a <br/>
<a id="pl.28.18"></a><var>28.18</var>domiciled association to self-employed individuals and small employers who are members <br/>
<a id="pl.28.19"></a><var>28.19</var>of the association, even if the self-employed individual or small employer has fewer than <br/>
<a id="pl.28.20"></a><var>28.20</var>two current employees. Entities that are treated as a single employer under subsection (b), <br/>
<a id="pl.28.21"></a><var>28.21</var>(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single <br/>
<a id="pl.28.22"></a><var>28.22</var>employer for purposes of determining the number of current employees. Small employer <br/>
<a id="pl.28.23"></a><var>28.23</var>status must be determined on an annual basis as of the renewal date of the health benefit <br/>
<a id="pl.28.24"></a><var>28.24</var>plan. The provisions of this chapter continue to apply to an employer who no longer meets <br/>
<a id="pl.28.25"></a><var>28.25</var>the requirements of this definition until the annual renewal date of the employer's health <br/>
<a id="pl.28.26"></a><var>28.26</var>benefit plan. If an employer was not in existence throughout the preceding calendar year, <br/>
<a id="pl.28.27"></a><var>28.27</var>the determination of whether the employer is a small employer is based upon the average <br/>
<a id="pl.28.28"></a><var>28.28</var>number of current employees that it is reasonably expected that the employer will employ <br/>
<a id="pl.28.29"></a><var>28.29</var>on business days in the current calendar year. For purposes of this definition, the term <br/>
<a id="pl.28.30"></a><var>28.30</var>employer includes any predecessor of the employer. An employer that has more than 50 <br/>
<a id="pl.28.31"></a><var>28.31</var>current employees but has 50 or fewer employees, as "employee" is defined under United <br/>
<a id="pl.28.32"></a><var>28.32</var>States Code, title 29, section 1002(6), is a small employer under this subdivision.<br/>
<a id="pl.28.33"></a><var>28.33</var>(b) Where an association, as defined in section 
         <statute_ref>62L.045</statute_ref>, comprised of employers <br/>
<a id="pl.28.34"></a><var>28.34</var>contracts with a health carrier to provide coverage to its members who are small employers, <br/>
<a id="pl.28.35"></a><var>28.35</var>the association and health benefit plans it provides to small employers, are subject to <br/>
<a id="pl.29.1"></a><var>29.1</var>section 
         <statute_ref>62L.045</statute_ref>, with respect to small employers in the association, even though the <br/>
<a id="pl.29.2"></a><var>29.2</var>association also provides coverage to its members that do not qualify as small employers. <br/>
<a id="pl.29.3"></a><var>29.3</var>(c) If an employer has employees covered under a trust specified in a collective <br/>
<a id="pl.29.4"></a><var>29.4</var>bargaining agreement under the federal Labor-Management Relations Act of 1947, <br/>
<a id="pl.29.5"></a><var>29.5</var>United States Code, title 29, section 141, et seq., as amended, or employees whose health <br/>
<a id="pl.29.6"></a><var>29.6</var>coverage is determined by a collective bargaining agreement and, as a result of the <br/>
<a id="pl.29.7"></a><var>29.7</var>collective bargaining agreement, is purchased separately from the health plan provided <br/>
<a id="pl.29.8"></a><var>29.8</var>to other employees, those employees are excluded in determining whether the employer <br/>
<a id="pl.29.9"></a><var>29.9</var>qualifies as a small employer. Those employees are considered to be a separate small <br/>
<a id="pl.29.10"></a><var>29.10</var>employer if they constitute a group that would qualify as a small employer in the absence <br/>
<a id="pl.29.11"></a><var>29.11</var>of the employees who are not subject to the collective bargaining agreement.<br/>
<br/>
<a id="bill.0.34.0"></a><a id="pl.29.12"></a><var>29.12</var>    Sec. 34. Minnesota Statutes 2008, section 62M.05, subdivision 3a, is amended to read:<br/>
<a id="pl.29.13"></a><var>29.13</var>    Subd. 3a. <b>Standard review determination.</b> (a) Notwithstanding subdivision 3b, an <br/>
<a id="pl.29.14"></a><var>29.14</var>initial determination on all requests for utilization review must be communicated to the <br/>
<a id="pl.29.15"></a><var>29.15</var>provider and enrollee in accordance with this subdivision within ten business days of the <br/>
<a id="pl.29.16"></a><var>29.16</var>request, provided that all information reasonably necessary to make a determination on the <br/>
<a id="pl.29.17"></a><var>29.17</var>request has been made available to the utilization review organization.<br/>
<a id="pl.29.18"></a><var>29.18</var>(b) When an initial determination is made to certify, notification must be provided <br/>
<a id="pl.29.19"></a><var>29.19</var>promptly by telephone to the provider. The utilization review organization shall send <br/>
<a id="pl.29.20"></a><var>29.20</var>written notification to the provider or shall maintain an audit trail of the determination <br/>
<a id="pl.29.21"></a><var>29.21</var>and telephone notification. For purposes of this subdivision, "audit trail" includes <br/>
<a id="pl.29.22"></a><var>29.22</var>documentation of the telephone notification, including the date; the name of the person <br/>
<a id="pl.29.23"></a><var>29.23</var>spoken to; the enrollee; the service, procedure, or admission certified; and the date of <br/>
<a id="pl.29.24"></a><var>29.24</var>the service, procedure, or admission. If the utilization review organization indicates <br/>
<a id="pl.29.25"></a><var>29.25</var>certification by use of a number, the number must be called the "certification number." <br/>
<a id="pl.29.26"></a><var>29.26</var>For purposes of this subdivision, notification may also be made by facsimile to a verified <br/>
<a id="pl.29.27"></a><var>29.27</var>number or by electronic mail to a secure electronic mailbox. These electronic forms of <br/>
<a id="pl.29.28"></a><var>29.28</var>notification satisfy the "audit trail" requirement of this paragraph.<br/>
<a id="pl.29.29"></a><var>29.29</var>(c) When an initial determination is made not to certify, notification must be <br/>
<a id="pl.29.30"></a><var>29.30</var>provided by telephone, by facsimile to a verified number, or by electronic mail to a <br/>
<a id="pl.29.31"></a><var>29.31</var>secure electronic mailbox within one working day after making the determination to <br/>
<a id="pl.29.32"></a><var>29.32</var>the attending health care professional and hospital and a written as applicable. Written <br/>
<a id="pl.29.33"></a><var>29.33</var>notification must also be sent to the hospital, as applicable and attending health care <br/>
<a id="pl.29.34"></a><var>29.34</var>professional, and enrollee if notification occurred by telephone. For purposes of this <br/>
<a id="pl.29.35"></a><var>29.35</var>subdivision, notification may be made by facsimile to a verified number or by electronic <br/>
<a id="pl.30.1"></a><var>30.1</var>mail to a secure electronic mailbox. Written notification must be sent to the enrollee and <br/>
<a id="pl.30.2"></a><var>30.2</var>may be sent by United States mail, facsimile to a verified number, or by electronic mail to <br/>
<a id="pl.30.3"></a><var>30.3</var>a secure mailbox. The written notification must include the principal reason or reasons <br/>
<a id="pl.30.4"></a><var>30.4</var>for the determination and the process for initiating an appeal of the determination. Upon <br/>
<a id="pl.30.5"></a><var>30.5</var>request, the utilization review organization shall provide the provider or enrollee with the <br/>
<a id="pl.30.6"></a><var>30.6</var>criteria used to determine the necessity, appropriateness, and efficacy of the health care <br/>
<a id="pl.30.7"></a><var>30.7</var>service and identify the database, professional treatment parameter, or other basis for the <br/>
<a id="pl.30.8"></a><var>30.8</var>criteria. Reasons for a determination not to certify may include, among other things, <br/>
<a id="pl.30.9"></a><var>30.9</var>the lack of adequate information to certify after a reasonable attempt has been made to <br/>
<a id="pl.30.10"></a><var>30.10</var>contact the provider or enrollee.<br/>
<a id="pl.30.11"></a><var>30.11</var>(d) When an initial determination is made not to certify, the written notification must <br/>
<a id="pl.30.12"></a><var>30.12</var>inform the enrollee and the attending health care professional of the right to submit an <br/>
<a id="pl.30.13"></a><var>30.13</var>appeal to the internal appeal process described in section 
         <statute_ref>62M.06</statute_ref> and the procedure <br/>
<a id="pl.30.14"></a><var>30.14</var>for initiating the internal appeal.<br/>
<br/>
<a id="bill.0.35.0"></a><a id="pl.30.15"></a><var>30.15</var>    Sec. 35. Minnesota Statutes 2008, section 65A.27, subdivision 1, is amended to read:<br/>
<a id="pl.30.16"></a><var>30.16</var>    Subdivision 1. <b>Scope.</b> For purposes of sections 
         <statute_ref>65A.27</statute_ref> to 
         <statute_ref>65A.30</statute_ref>
<statute_ref>65A.302, </statute_ref>the <br/>
<a id="pl.30.17"></a><var>30.17</var>following terms have the meanings given.<br/>
<br/>
<a id="bill.0.36.0"></a><a id="pl.30.18"></a><var>30.18</var>    Sec. 36. Minnesota Statutes 2008, section 65A.29, is amended by adding a subdivision <br/>
<a id="pl.30.19"></a><var>30.19</var>to read:<br/>
<a id="pl.30.20"></a><var>30.20</var>    Subd. 13. <b>Notice of possible cancellation.</b> (a) A written notice must be <br/>
<a id="pl.30.21"></a><var>30.21</var>provided to all applicants for homeowners' insurance, at the time the application is <br/>
<a id="pl.30.22"></a><var>30.22</var>submitted, containing the following language in bold print: "THE INSURER MAY <br/>
<a id="pl.30.23"></a><var>30.23</var>ELECT TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 60 DAYS <br/>
<a id="pl.30.24"></a><var>30.24</var>FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS <br/>
<a id="pl.30.25"></a><var>30.25</var>NOT SPECIFICALLY PROHIBITED BY STATUTE."<br/>
<a id="pl.30.26"></a><var>30.26</var>(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent <br/>
<a id="pl.30.27"></a><var>30.27</var>may advise the applicant orally or in writing of its availability for review on the insurer's <br/>
<a id="pl.30.28"></a><var>30.28</var>Web site in lieu of providing a written notice, if the insurer advises the applicant of the <br/>
<a id="pl.30.29"></a><var>30.29</var>availability of a written notice upon the applicant's request.  The insurer shall provide the <br/>
<a id="pl.30.30"></a><var>30.30</var>notice in writing if requested by the applicant. An oral notice shall be presumed delivered <br/>
<a id="pl.30.31"></a><var>30.31</var>if the agent or insurer makes a contemporaneous notation in the applicant's record of <br/>
<a id="pl.30.32"></a><var>30.32</var>the notice having been delivered or if the insurer or agent retains an audio recording of <br/>
<a id="pl.30.33"></a><var>30.33</var>the notification provided to the applicant. <br/>
<a id="pl.30.34"></a><var>30.34</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2010.<br/>
<br/>
<a id="bill.0.37.0"></a><a id="pl.31.1"></a><var>31.1</var>    Sec. 37. Minnesota Statutes 2008, section 65B.133, subdivision 2, is amended to read:<br/>
<a id="pl.31.2"></a><var>31.2</var>    Subd. 2. <b>Disclosure to applicants.</b> Before accepting the initial premium payment, <br/>
<a id="pl.31.3"></a><var>31.3</var>an insurer or its agent shall provide a surcharge disclosure statement to any person who <br/>
<a id="pl.31.4"></a><var>31.4</var>applies for a policy which is effective on or after January 1, 1983. If the insurer provides <br/>
<a id="pl.31.5"></a><var>31.5</var>the surcharge disclosure statement on the insurer's website, the insurer or agent may notify <br/>
<a id="pl.31.6"></a><var>31.6</var>the applicant orally or in writing of its availability for review on the insurer's website <br/>
<a id="pl.31.7"></a><var>31.7</var>prior to accepting the initial payment, in lieu of providing a disclosure statement to the <br/>
<a id="pl.31.8"></a><var>31.8</var>applicant in writing, if the insurer so notifies the applicant of the availability of a written <br/>
<a id="pl.31.9"></a><var>31.9</var>version of this statement upon the applicant's request.  The insurer shall provide the <br/>
<a id="pl.31.10"></a><var>31.10</var>surcharge disclosure statement in writing if requested by the applicant. An oral notice <br/>
<a id="pl.31.11"></a><var>31.11</var>shall be presumed delivered if the agent or insurer makes a contemporaneous notation in <br/>
<a id="pl.31.12"></a><var>31.12</var>the applicant's record of the notice having been delivered or if the insurer or agent retains <br/>
<a id="pl.31.13"></a><var>31.13</var>an audio recording of the notification provided to the applicant. <br/>
<br/>
<a id="bill.0.38.0"></a><a id="pl.31.14"></a><var>31.14</var>    Sec. 38. Minnesota Statutes 2008, section 65B.133, subdivision 3, is amended to read:<br/>
<a id="pl.31.15"></a><var>31.15</var>    Subd. 3. <b>Disclosure to policyholders.</b> An insurer or its agent shall mail or deliver <br/>
<a id="pl.31.16"></a><var>31.16</var>a surcharge disclosure statement or written notice of the statement's availability on the <br/>
<a id="pl.31.17"></a><var>31.17</var>insurer's website to the named insured either before or with the first notice to renew a <br/>
<a id="pl.31.18"></a><var>31.18</var>policy on or after January 1, 1983. If a surcharge disclosure statement or written website <br/>
<a id="pl.31.19"></a><var>31.19</var>notice has been provided pursuant to subdivision 2, no surcharge disclosure statement is <br/>
<a id="pl.31.20"></a><var>31.20</var>required to be mailed or delivered to the same named insured pursuant to subdivision 3.<br/>
<br/>
<a id="bill.0.39.0"></a><a id="pl.31.21"></a><var>31.21</var>    Sec. 39. Minnesota Statutes 2008, section 65B.133, subdivision 4, is amended to read:<br/>
<a id="pl.31.22"></a><var>31.22</var>    Subd. 4. <b>Notification of change.</b> No insurer may change its surcharge plan unless <br/>
<a id="pl.31.23"></a><var>31.23</var>a surcharge disclosure statement or written website notice is mailed or delivered to the <br/>
<a id="pl.31.24"></a><var>31.24</var>named insured before the change is made. A surcharge disclosure statement disclosing a <br/>
<a id="pl.31.25"></a><var>31.25</var>change applicable on the renewal of a policy, may be mailed with an offer to renew the <br/>
<a id="pl.31.26"></a><var>31.26</var>policy. Surcharges cannot be applied to accidents or traffic violations that occurred prior <br/>
<a id="pl.31.27"></a><var>31.27</var>to a change in a surcharge plan except to the extent provided under the prior plan.<br/>
<br/>
<a id="bill.0.40.0"></a><a id="pl.31.28"></a><var>31.28</var>    Sec. 40. Minnesota Statutes 2008, section 65B.54, subdivision 1, is amended to read:<br/>
<a id="pl.31.29"></a><var>31.29</var>    Subdivision 1. <b>Payment of basic economic loss benefits.</b> Basic economic loss <br/>
<a id="pl.31.30"></a><var>31.30</var>benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as <br/>
<a id="pl.31.31"></a><var>31.31</var>income loss, replacement services loss, survivor's economic loss, survivor's replacement <br/>
<a id="pl.31.32"></a><var>31.32</var>services loss, or medical or funeral expense is incurred. Benefits are overdue if not <br/>
<a id="pl.31.33"></a><var>31.33</var>paid within 30 days after the reparation obligor receives reasonable proof of the fact <br/>
<a id="pl.32.1"></a><var>32.1</var>and amount of loss realized, unless the reparation obligor elects to accumulate claims <br/>
<a id="pl.32.2"></a><var>32.2</var>for periods not exceeding 31 days and pays them within 15 days after the period of <br/>
<a id="pl.32.3"></a><var>32.3</var>accumulation. If reasonable proof is supplied as to only part of a claim, and the part <br/>
<a id="pl.32.4"></a><var>32.4</var>totals $100 or more, the part is overdue if not paid within the time provided by this <br/>
<a id="pl.32.5"></a><var>32.5</var>section. Medical or funeral expense benefits may be paid by the reparation obligor <br/>
<a id="pl.32.6"></a><var>32.6</var>directly to persons supplying products, services, or accommodations to the claimant. <br/>
<a id="pl.32.7"></a><var>32.7</var>Claims by a health provider defined in section 62J.03, subdivision 8, for medical expense <br/>
<a id="pl.32.8"></a><var>32.8</var>benefits covered by this chapter shall be submitted to the reparation obligor pursuant to <br/>
<a id="pl.32.9"></a><var>32.9</var>the uniform electronic transaction standards required by section 62J.536 and the rules <br/>
<a id="pl.32.10"></a><var>32.10</var>promulgated under that section. Payment of benefits for such claims for medical expense <br/>
<a id="pl.32.11"></a><var>32.11</var>benefits are not due if the claim is not received by the reparation obligor pursuant to <br/>
<a id="pl.32.12"></a><var>32.12</var>those electronic transaction standards and rules. Notwithstanding any such submission, <br/>
<a id="pl.32.13"></a><var>32.13</var>a reparation obligor may require additional reasonable proof regarding the fact and the <br/>
<a id="pl.32.14"></a><var>32.14</var>amount of loss realized regarding such a claim. A health care provider cannot directly <br/>
<a id="pl.32.15"></a><var>32.15</var>bill an insured for the amount of any such claim not remitted pursuant to the transaction <br/>
<a id="pl.32.16"></a><var>32.16</var>standards required by section 62J.536 if the reparation obligor is acting in compliance <br/>
<a id="pl.32.17"></a><var>32.17</var>with these standards in receiving or paying such a claim.<br/>
<br/>
<a id="bill.0.41.0"></a><a id="pl.32.18"></a><var>32.18</var>    Sec. 41. Minnesota Statutes 2008, section 67A.191, subdivision 2, is amended to read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 2. <b>Homeowner's risks.</b> A township mutual fire insurance company may issue <br/>
<a id="pl.32.20"></a><var>32.20</var>policies known as "homeowner's insurance" as defined in section 
         <statute_ref>65A.27, subdivision <br/>
<a id="pl.32.21"></a><var>32.21</var>4
         </statute_ref>, only in combination with a policy issued by an insurer authorized to sell property <br/>
<a id="pl.32.22"></a><var>32.22</var>and casualty insurance in this state. All portions of the combination policy providing <br/>
<a id="pl.32.23"></a><var>32.23</var>homeowner's insurance, including those issued by a township mutual insurance company, <br/>
<a id="pl.32.24"></a><var>32.24</var>shall be are subject to the provisions of chapter 65A and sections 72A.20 and 72A.201.<br/>
<br/>
<a id="bill.0.42.0"></a><a id="pl.32.25"></a><var>32.25</var>    Sec. 42. Minnesota Statutes 2008, section 72A.20, subdivision 15, is amended to read:<br/>
<a id="pl.32.26"></a><var>32.26</var>    Subd. 15. <b>Practices not held to be discrimination or rebates.</b> Nothing in <br/>
<a id="pl.32.27"></a><var>32.27</var>subdivision 8, 9, or 10, or in section 
         <statute_ref>72A.12, subdivisions 3 and 4</statute_ref>, shall be construed as <br/>
<a id="pl.32.28"></a><var>32.28</var>including within the definition of discrimination or rebates any of the following practices: <br/>
<a id="pl.32.29"></a><var>32.29</var>(1) in the case of any contract of life insurance or annuity, paying bonuses to <br/>
<a id="pl.32.30"></a><var>32.30</var>policyholders or otherwise abating their premiums in whole or in part out of surplus <br/>
<a id="pl.32.31"></a><var>32.31</var>accumulated from nonparticipating insurance, provided that any bonuses or abatement <br/>
<a id="pl.32.32"></a><var>32.32</var>of premiums shall be fair and equitable to policyholders and for the best interests of the <br/>
<a id="pl.32.33"></a><var>32.33</var>company and its policyholders;<br/>
<a id="pl.33.1"></a><var>33.1</var>(2) in the case of life insurance policies issued on the industrial debit plan, making <br/>
<a id="pl.33.2"></a><var>33.2</var>allowance, to policyholders who have continuously for a specified period made premium <br/>
<a id="pl.33.3"></a><var>33.3</var>payments directly to an office of the insurer, in an amount which fairly represents the <br/>
<a id="pl.33.4"></a><var>33.4</var>saving in collection expense;<br/>
<a id="pl.33.5"></a><var>33.5</var>(3) readjustment of the rate of premium for a group insurance policy based on the <br/>
<a id="pl.33.6"></a><var>33.6</var>loss or expense experienced thereunder, at the end of the first or any subsequent policy <br/>
<a id="pl.33.7"></a><var>33.7</var>year of insurance thereunder, which may be made retroactive only for such policy year;<br/>
<a id="pl.33.8"></a><var>33.8</var>(4) in the case of an individual or group health insurance policy, the payment of <br/>
<a id="pl.33.9"></a><var>33.9</var>differing amounts of reimbursement to insureds who elect to receive health care goods <br/>
<a id="pl.33.10"></a><var>33.10</var>or services from providers designated by the insurer, provided that each insurer shall on <br/>
<a id="pl.33.11"></a><var>33.11</var>or before August 1 of each year file with the commissioner summary data regarding the <br/>
<a id="pl.33.12"></a><var>33.12</var>financial reimbursement offered to providers so designated.; and<br/>
<a id="pl.33.13"></a><var>33.13</var>Any insurer which proposes to offer an arrangement authorized under this clause <br/>
<a id="pl.33.14"></a><var>33.14</var>shall disclose prior to its initial offering and on or before August 1 of each year thereafter <br/>
<a id="pl.33.15"></a><var>33.15</var>as a supplement to its annual statement submitted to the commissioner pursuant to section <br/>
<a id="pl.33.16"></a><var>33.16</var><statute_ref>60A.13, subdivision 1</statute_ref>, the following information: <br/>
<a id="pl.33.17"></a><var>33.17</var>(a) the name which the arrangement intends to use and its business address;<br/>
<a id="pl.33.18"></a><var>33.18</var>(b) the name, address, and nature of any separate organization which administers the <br/>
<a id="pl.33.19"></a><var>33.19</var>arrangement on the behalf of the insurers; and<br/>
<a id="pl.33.20"></a><var>33.20</var>(c) the names and addresses of all providers designated by the insurer under this <br/>
<a id="pl.33.21"></a><var>33.21</var>clause and the terms of the agreements with designated health care providers.<br/>
<a id="pl.33.22"></a><var>33.22</var>The commissioner shall maintain a record of arrangements proposed under this <br/>
<a id="pl.33.23"></a><var>33.23</var>clause, including a record of any complaints submitted relative to the arrangements.<br/>
<a id="pl.33.24"></a><var>33.24</var>    (5) in the case of an individual or group health insurance policy, offering incentives <br/>
<a id="pl.33.25"></a><var>33.25</var>to individuals for taking part in preventive health care services, medical management <br/>
<a id="pl.33.26"></a><var>33.26</var>incentive programs, or activities designed to improve the health of the individual.<br/>
<a id="pl.33.27"></a><var>33.27</var>If the commissioner requests copies of contracts with a provider under this clause (4) <br/>
<a id="pl.33.28"></a><var>33.28</var>and the provider requests a determination, all information contained in the contracts that <br/>
<a id="pl.33.29"></a><var>33.29</var>the commissioner determines may place the provider or health care plan at a competitive <br/>
<a id="pl.33.30"></a><var>33.30</var>disadvantage is nonpublic data.<br/>
<br/>
<a id="bill.0.43.0"></a><a id="pl.33.31"></a><var>33.31</var>    Sec. 43. Minnesota Statutes 2008, section 72A.20, subdivision 26, is amended to read:<br/>
<a id="pl.33.32"></a><var>33.32</var>    Subd. 26. <b>Loss experience.</b> An insurer shall without cost to the insured provide an <br/>
<a id="pl.33.33"></a><var>33.33</var>insured with the loss or claims experience of that insured for the current policy period and <br/>
<a id="pl.33.34"></a><var>33.34</var>for the two policy periods preceding the current one for which the insurer has provided <br/>
<a id="pl.33.35"></a><var>33.35</var>coverage, within 30 days of a request for the information by the policyholder. Whenever <br/>
<a id="pl.34.1"></a><var>34.1</var>reporting loss experience data, actual claims paid on behalf of the insured must be reported <br/>
<a id="pl.34.2"></a><var>34.2</var>separately from claims incurred but not paid, pooling charges for catastrophic claim <br/>
<a id="pl.34.3"></a><var>34.3</var>protection, and any other administrative fees or charges that may be charged as an incurred <br/>
<a id="pl.34.4"></a><var>34.4</var>claim expense. Claims experience data must be provided to the insured in accordance with <br/>
<a id="pl.34.5"></a><var>34.5</var>state and federal requirements regarding the confidentiality of medical data. The insurer <br/>
<a id="pl.34.6"></a><var>34.6</var>shall not be responsible for providing information without cost more often than once in <br/>
<a id="pl.34.7"></a><var>34.7</var>a 12-month period. The insurer is not required to provide the information if the policy <br/>
<a id="pl.34.8"></a><var>34.8</var>covers the employee of more than one employer and the information is not maintained <br/>
<a id="pl.34.9"></a><var>34.9</var>separately for each employer and not all employers request the data.<br/>
<a id="pl.34.10"></a><var>34.10</var>    An insurer, health maintenance organization, or a third-party administrator may not <br/>
<a id="pl.34.11"></a><var>34.11</var>request more than three years of loss or claims experience as a condition of submitting an <br/>
<a id="pl.34.12"></a><var>34.12</var>application or providing coverage.<br/>
<a id="pl.34.13"></a><var>34.13</var>    This subdivision only applies to group life policies and group health policies.<br/>
<a id="pl.34.14"></a><var>34.14</var><b>EFFECTIVE DATE.</b>This section is effective for policy renewal proposals <br/>
<a id="pl.34.15"></a><var>34.15</var>delivered on or after August 1, 2010.<br/>
<br/>
<a id="bill.0.44.0"></a><a id="pl.34.16"></a><var>34.16</var>    Sec. 44. Minnesota Statutes 2008, section 72A.201, is amended by adding a <br/>
<a id="pl.34.17"></a><var>34.17</var>subdivision to read:<br/>
<a id="pl.34.18"></a><var>34.18</var>    Subd. 14. <b>Uniform electronic transaction standards.</b> Claims for medical <br/>
<a id="pl.34.19"></a><var>34.19</var>expenses under a property and casualty insurance policy subject to the uniform electronic <br/>
<a id="pl.34.20"></a><var>34.20</var>transaction standards required by section 62J.536 shall be submitted to an insurer by a <br/>
<a id="pl.34.21"></a><var>34.21</var>health care provider subject to that section pursuant to the uniform electronic transaction <br/>
<a id="pl.34.22"></a><var>34.22</var>standards and rules promulgated under that section. The exchange of information related <br/>
<a id="pl.34.23"></a><var>34.23</var>to such claims pursuant to the electronic transaction standards by an insurer shall not be <br/>
<a id="pl.34.24"></a><var>34.24</var>the sole basis for a finding that the insurer is not in compliance with the requirements of <br/>
<a id="pl.34.25"></a><var>34.25</var>this section, section 72A.20, and any rules promulgated under these sections.<br/>
<br/>
<a id="bill.0.45.0"></a><a id="pl.34.26"></a><var>34.26</var>    Sec. 45. <b>[72A.204] PROHIBITED USES OF SENIOR-SPECIFIC </b><br/>
<a id="pl.34.27"></a><var>34.27</var><b>CERTIFICATIONS AND PROFESSIONAL DESIGNATIONS.</b><br/>
<a id="pl.34.28"></a><var>34.28</var>    Subdivision 1. <b>Purpose and scope.</b> The purpose of this section is to set forth <br/>
<a id="pl.34.29"></a><var>34.29</var>standards to protect consumers from misleading and fraudulent marketing practices with <br/>
<a id="pl.34.30"></a><var>34.30</var>respect to the use of senior-specific certifications and professional designations in:<br/>
<a id="pl.34.31"></a><var>34.31</var>(1) the solicitation, sale, or purchase of a life insurance or annuity product; or<br/>
<a id="pl.34.32"></a><var>34.32</var>(2) the provision of advice in connection with the solicitation, sale, or purchase of a <br/>
<a id="pl.34.33"></a><var>34.33</var>life insurance or annuity product.<br/>
<a id="pl.35.1"></a><var>35.1</var>    Subd. 2. <b>Insurance producer.</b> For purposes of this section, "insurance producer" <br/>
<a id="pl.35.2"></a><var>35.2</var>means a person required to be licensed under the laws of this state to sell, solicit, or <br/>
<a id="pl.35.3"></a><var>35.3</var>negotiate insurance, including annuities.<br/>
<a id="pl.35.4"></a><var>35.4</var>    Subd. 3. <b>Prohibited uses of senior-specific certifications and professional </b><br/>
<a id="pl.35.5"></a><var>35.5</var><b>designations.</b> (a) It is an unfair and deceptive act or practice in the business of insurance <br/>
<a id="pl.35.6"></a><var>35.6</var>for an insurance producer to use a senior-specific certification or professional designation <br/>
<a id="pl.35.7"></a><var>35.7</var>that indicates or implies in such a way as to mislead a client or prospective client that the <br/>
<a id="pl.35.8"></a><var>35.8</var>insurance producer has special certification or training in advising or servicing seniors in <br/>
<a id="pl.35.9"></a><var>35.9</var>connection with the solicitation, sale, or purchase of a life insurance or annuity product or <br/>
<a id="pl.35.10"></a><var>35.10</var>in the provision of advice as to the value of or the advisability of purchasing or selling a <br/>
<a id="pl.35.11"></a><var>35.11</var>life insurance or annuity product, either directly or indirectly, including the provision of <br/>
<a id="pl.35.12"></a><var>35.12</var>advice through publications or writings or by issuing or promulgating analyses or reports <br/>
<a id="pl.35.13"></a><var>35.13</var>related to a life insurance or annuity product.<br/>
<a id="pl.35.14"></a><var>35.14</var>(b) The prohibited use of senior-specific certifications or professional designations <br/>
<a id="pl.35.15"></a><var>35.15</var>includes, but is not limited to, the following:<br/>
<a id="pl.35.16"></a><var>35.16</var>(1) use of a certification or professional designation by an insurance producer who <br/>
<a id="pl.35.17"></a><var>35.17</var>has not actually earned or is otherwise ineligible to use such certification or designation;<br/>
<a id="pl.35.18"></a><var>35.18</var>(2) use of a nonexistent or self-conferred certification or professional designation;<br/>
<a id="pl.35.19"></a><var>35.19</var>(3) use of a certification or professional designation that indicates or implies a level <br/>
<a id="pl.35.20"></a><var>35.20</var>of occupational qualifications obtained through education, training, or experience that the <br/>
<a id="pl.35.21"></a><var>35.21</var>insurance producer using the certification or designation does not have; and<br/>
<a id="pl.35.22"></a><var>35.22</var>(4) use of a certification or professional designation that was obtained from a <br/>
<a id="pl.35.23"></a><var>35.23</var>certifying or designating organization that:<br/>
<a id="pl.35.24"></a><var>35.24</var>(i) is primarily engaged in the business of instruction in sales or marketing;<br/>
<a id="pl.35.25"></a><var>35.25</var>(ii) does not have reasonable standards or procedures for ensuring the competency of <br/>
<a id="pl.35.26"></a><var>35.26</var>its certificants or designees;<br/>
<a id="pl.35.27"></a><var>35.27</var>(iii) does not have reasonable standards or procedures for monitoring and <br/>
<a id="pl.35.28"></a><var>35.28</var>disciplining its certificants or designees for improper or unethical conduct; or<br/>
<a id="pl.35.29"></a><var>35.29</var>(iv) does not have reasonable continuing education requirements for its certificants <br/>
<a id="pl.35.30"></a><var>35.30</var>or designees in order to maintain the certificate or designation.<br/>
<a id="pl.35.31"></a><var>35.31</var>(c) There is a rebuttable presumption that a certifying or designating organization is <br/>
<a id="pl.35.32"></a><var>35.32</var>not disqualified solely for the purposes of paragraph (b), clause (4), when the certification <br/>
<a id="pl.35.33"></a><var>35.33</var>or designation issued from the organization does not primarily apply to sales or marketing <br/>
<a id="pl.35.34"></a><var>35.34</var>and when the organization or the certification or designation in question has been <br/>
<a id="pl.35.35"></a><var>35.35</var>accredited by:<br/>
<a id="pl.35.36"></a><var>35.36</var>(1) the American National Standards Institute (ANSI);<br/>
<a id="pl.36.1"></a><var>36.1</var>(2) the National Commission for Certifying Agencies; or<br/>
<a id="pl.36.2"></a><var>36.2</var>(3) any organization that is on the United States Department of Education list <br/>
<a id="pl.36.3"></a><var>36.3</var>entitled "Accrediting Agencies Recognized for Title IV Purposes."<br/>
<a id="pl.36.4"></a><var>36.4</var>(d) In determining whether a combination of words or an acronym standing for a <br/>
<a id="pl.36.5"></a><var>36.5</var>combination of words constitutes a certification or professional designation indicating or <br/>
<a id="pl.36.6"></a><var>36.6</var>implying that a person has special certification or training in advising or servicing seniors, <br/>
<a id="pl.36.7"></a><var>36.7</var>factors to be considered must include:<br/>
<a id="pl.36.8"></a><var>36.8</var>(1) use of one or more words such as "senior," "retirement," "elder," or like words <br/>
<a id="pl.36.9"></a><var>36.9</var>combined with one or more words such as "certified," "registered," "chartered," "adviser," <br/>
<a id="pl.36.10"></a><var>36.10</var>"specialist," "consultant," "planner," or like words, in the name of the certification or <br/>
<a id="pl.36.11"></a><var>36.11</var>professional designation; and<br/>
<a id="pl.36.12"></a><var>36.12</var>(2) the manner in which those words are combined.<br/>
<a id="pl.36.13"></a><var>36.13</var>(e) For purposes of this section, a job title within an organization that is licensed or <br/>
<a id="pl.36.14"></a><var>36.14</var>registered by a state or federal financial services regulatory agency is not a certification or <br/>
<a id="pl.36.15"></a><var>36.15</var>professional designation, unless it is used in a manner that would confuse or mislead a <br/>
<a id="pl.36.16"></a><var>36.16</var>reasonable consumer, when the job title:<br/>
<a id="pl.36.17"></a><var>36.17</var>(1) indicates seniority or standing within the organization; or<br/>
<a id="pl.36.18"></a><var>36.18</var>(2) specifies an individual's area of specialization within the organization.<br/>
<a id="pl.36.19"></a><var>36.19</var>(f) For purposes of paragraph (e), "financial services regulatory agency" includes, <br/>
<a id="pl.36.20"></a><var>36.20</var>but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers, <br/>
<a id="pl.36.21"></a><var>36.21</var>investment advisers, or investment companies as defined under the Investment Company <br/>
<a id="pl.36.22"></a><var>36.22</var>Act of 1940.<br/>
<br/>
<a id="bill.0.46.0"></a><a id="pl.36.23"></a><var>36.23</var>    Sec. 46. Minnesota Statutes 2008, section 79A.04, subdivision 1, is amended to read:<br/>
<a id="pl.36.24"></a><var>36.24</var>    Subdivision 1. <b>Annual securing of liability.</b> Each year every private self-insuring <br/>
<a id="pl.36.25"></a><var>36.25</var>employer shall secure incurred liabilities for the payment of compensation and the <br/>
<a id="pl.36.26"></a><var>36.26</var>performance of its obligations and the obligations of all self-insuring employers imposed <br/>
<a id="pl.36.27"></a><var>36.27</var>under chapter 176 by renewing the prior year's security deposit or by making a new <br/>
<a id="pl.36.28"></a><var>36.28</var>deposit of security. If a new deposit is made, it must be posted within 60 days of the filing <br/>
<a id="pl.36.29"></a><var>36.29</var>of the self-insured employer's annual report with the commissioner, but in no event later <br/>
<a id="pl.36.30"></a><var>36.30</var>than July 1 in the following manner: within 60 days of the filing of the annual report, the <br/>
<a id="pl.36.31"></a><var>36.31</var>security posting for all prior years plus one-third of the posting for the current year; by <br/>
<a id="pl.36.32"></a><var>36.32</var>July 31, one-third of the posting for the current year; by October 31, the final one-third of <br/>
<a id="pl.36.33"></a><var>36.33</var>the posting for the current year.<br/>
<br/>
<a id="bill.0.47.0"></a><a id="pl.37.1"></a><var>37.1</var>    Sec. 47. Minnesota Statutes 2008, section 79A.06, is amended by adding a subdivision <br/>
<a id="pl.37.2"></a><var>37.2</var>to read:<br/>
<a id="pl.37.3"></a><var>37.3</var>    Subd. 7. <b>Insolvency of a self-insurance group insurer.</b> In the event of the <br/>
<a id="pl.37.4"></a><var>37.4</var>insolvency of the insurer of a self-insurance group issued a policy under section 79A.06, <br/>
<a id="pl.37.5"></a><var>37.5</var>subdivision 5, including a policy covering only a portion of the period of self-insurance, <br/>
<a id="pl.37.6"></a><var>37.6</var>eligibility for chapter 60C coverage under the policy shall be determined by applying the <br/>
<a id="pl.37.7"></a><var>37.7</var>requirements of section 60C.09, subdivision 2, clause (3), to each self-insurance group <br/>
<a id="pl.37.8"></a><var>37.8</var>member, rather than to the net worth of the self-insurance group entity or the aggregate net <br/>
<a id="pl.37.9"></a><var>37.9</var>worth of all members of the self-insurance group entity.<br/>
<br/>
<a id="bill.0.48.0"></a><a id="pl.37.10"></a><var>37.10</var>    Sec. 48. Minnesota Statutes 2008, section 79A.24, subdivision 1, is amended to read:<br/>
<a id="pl.37.11"></a><var>37.11</var>    Subdivision 1. <b>Annual securing of liability.</b> Each year every commercial <br/>
<a id="pl.37.12"></a><var>37.12</var>self-insurance group shall secure its estimated future liability for the payment of <br/>
<a id="pl.37.13"></a><var>37.13</var>compensation and the performance of the obligations of its membership imposed under <br/>
<a id="pl.37.14"></a><var>37.14</var>chapter 176. A new deposit must be posted within 30 days of the filing of the commercial <br/>
<a id="pl.37.15"></a><var>37.15</var>self-insurance group's annual actuarial report with the commissioner in the following <br/>
<a id="pl.37.16"></a><var>37.16</var>manner: within 30 days of the filing of the annual report, the security posting for all prior <br/>
<a id="pl.37.17"></a><var>37.17</var>years plus one-third of the posting for the current year; by July 31, one-third of the posting <br/>
<a id="pl.37.18"></a><var>37.18</var>for the current year; by October 31, the final one-third of the posting for the current year.<br/>
<br/>
<a id="bill.0.49.0"></a><a id="pl.37.19"></a><var>37.19</var>    Sec. 49. Minnesota Statutes 2008, section 79A.24, is amended by adding a subdivision <br/>
<a id="pl.37.20"></a><var>37.20</var>to read:<br/>
<a id="pl.37.21"></a><var>37.21</var>    Subd. 2a. <b>Exceptions.</b> Notwithstanding the requirements of subdivisions 1 <br/>
<a id="pl.37.22"></a><var>37.22</var>and 2, the commissioner may, until the next annual securing of liability, adjust this <br/>
<a id="pl.37.23"></a><var>37.23</var>required security deposit for the portion attributable to the current year only, if, in the <br/>
<a id="pl.37.24"></a><var>37.24</var>commissioner's judgment, the self-insurer will be able to meet its obligations under this <br/>
<a id="pl.37.25"></a><var>37.25</var>chapter until the next annual securing of liability.<br/>
<br/>
<a id="bill.0.50.0"></a><a id="pl.37.26"></a><var>37.26</var>    Sec. 50. <b>[80A.91] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE </b><br/>
<a id="pl.37.27"></a><var>37.27</var><b>OF SOURCE.</b><br/>
<a id="pl.37.28"></a><var>37.28</var>A broker-dealer shall not require an agent to maintain insurance coverage for the <br/>
<a id="pl.37.29"></a><var>37.29</var>agent's errors and omissions from a specific insurance company. This section does not <br/>
<a id="pl.37.30"></a><var>37.30</var>apply if the agent is an employee of that broker-dealer, or if the broker-dealer or affiliated <br/>
<a id="pl.37.31"></a><var>37.31</var>insurance company contributes to the premiums for the errors and omissions coverage. <br/>
<a id="pl.37.32"></a><var>37.32</var>Nothing in this section shall prohibit a broker-dealer from requiring an agent to maintain <br/>
<a id="pl.38.1"></a><var>38.1</var>errors and omissions coverage or requiring that the errors and omissions coverage meet <br/>
<a id="pl.38.2"></a><var>38.2</var>certain criteria.<br/>
<br/>
<a id="bill.0.51.0"></a><a id="pl.38.3"></a><var>38.3</var>    Sec. 51. Minnesota Statutes 2008, section 82.31, subdivision 4, is amended to read:<br/>
<a id="pl.38.4"></a><var>38.4</var>    Subd. 4. <b>Corporate and partnership licenses.</b> (a) A corporation applying for <br/>
<a id="pl.38.5"></a><var>38.5</var>a license shall have at least one officer individually licensed to act as broker for the <br/>
<a id="pl.38.6"></a><var>38.6</var>corporation. The corporation broker's license shall extend no authority to act as broker <br/>
<a id="pl.38.7"></a><var>38.7</var>to any person other than the corporate entity. Each officer who intends to act as a broker <br/>
<a id="pl.38.8"></a><var>38.8</var>shall obtain a license.<br/>
<a id="pl.38.9"></a><var>38.9</var>(b) A partnership applying for a license shall have at least one partner individually <br/>
<a id="pl.38.10"></a><var>38.10</var>licensed to act as broker for the partnership. Each partner who intends to act as a broker <br/>
<a id="pl.38.11"></a><var>38.11</var>shall obtain a license.<br/>
<a id="pl.38.12"></a><var>38.12</var>(c) Applications for a license made by a corporation shall be verified by the president <br/>
<a id="pl.38.13"></a><var>38.13</var>and one other officer. Applications made by a partnership shall be verified by at least <br/>
<a id="pl.38.14"></a><var>38.14</var>two partners.<br/>
<a id="pl.38.15"></a><var>38.15</var>(d) Any partner or officer who ceases to act as broker for a partnership or corporation <br/>
<a id="pl.38.16"></a><var>38.16</var>shall notify the commissioner upon said termination. The individual licenses of all <br/>
<a id="pl.38.17"></a><var>38.17</var>salespersons acting on behalf of a corporation or partnership, are automatically ineffective <br/>
<a id="pl.38.18"></a><var>38.18</var>upon the revocation or suspension of the license of the partnership or corporation. <br/>
<a id="pl.38.19"></a><var>38.19</var>The commissioner may suspend or revoke the license of an officer or partner without <br/>
<a id="pl.38.20"></a><var>38.20</var>suspending or revoking the license of the corporation or partnership.<br/>
<a id="pl.38.21"></a><var>38.21</var>(e) The application of all officers of a corporation or partners in a partnership who <br/>
<a id="pl.38.22"></a><var>38.22</var>intend to act as a broker on behalf of a corporation or partnership shall accompany the <br/>
<a id="pl.38.23"></a><var>38.23</var>initial license application of the corporation or partnership. Officers or partners intending <br/>
<a id="pl.38.24"></a><var>38.24</var>to act as brokers subsequent to the licensing of the corporation or partnership shall procure <br/>
<a id="pl.38.25"></a><var>38.25</var>an individual real estate broker's license prior to acting in the capacity of a broker. No <br/>
<a id="pl.38.26"></a><var>38.26</var>corporate officer, or partner, who maintains a salesperson's license may exercise any <br/>
<a id="pl.38.27"></a><var>38.27</var>authority over any trust account administered by the broker nor may they be vested with <br/>
<a id="pl.38.28"></a><var>38.28</var>any supervisory authority over the broker.<br/>
<a id="pl.38.29"></a><var>38.29</var>(f) The corporation or partnership applicant shall make available upon request, such <br/>
<a id="pl.38.30"></a><var>38.30</var>records and data required by the commissioner for enforcement of this chapter.<br/>
<a id="pl.38.31"></a><var>38.31</var>(g) The commissioner may require further information, as the commissioner deems <br/>
<a id="pl.38.32"></a><var>38.32</var>appropriate, to administer the provisions and further the purposes of this chapter.<br/>
<br/>
<a id="bill.0.52.0"></a><a id="pl.38.33"></a><var>38.33</var>    Sec. 52. <b>[82B.071] RECORDS.</b><br/>
<a id="pl.39.1"></a><var>39.1</var>    Subdivision 1. <b>Examination of records.</b> The commissioner may make examinations <br/>
<a id="pl.39.2"></a><var>39.2</var>within or without this state of each real estate appraiser's records at such reasonable time <br/>
<a id="pl.39.3"></a><var>39.3</var>and in such scope as is necessary to enforce the provisions of this chapter.<br/>
<a id="pl.39.4"></a><var>39.4</var>    Subd. 2. <b>Retention.</b> Licensees shall keep a separate work file for each appraisal <br/>
<a id="pl.39.5"></a><var>39.5</var>assignment, which is to include copies of all contracts engaging his or her services for <br/>
<a id="pl.39.6"></a><var>39.6</var>the real estate appraisal, appraisal reports, and all data, information, and documentation <br/>
<a id="pl.39.7"></a><var>39.7</var>assembled and formulated by the appraiser to support the appraiser's opinions and <br/>
<a id="pl.39.8"></a><var>39.8</var>conclusions and to show compliance with USPAP, for a period of five years after <br/>
<a id="pl.39.9"></a><var>39.9</var>preparation, or at least two years after final disposition of any judicial proceedings in <br/>
<a id="pl.39.10"></a><var>39.10</var>which the appraiser provided testimony or was the subject of litigation related to the <br/>
<a id="pl.39.11"></a><var>39.11</var>assignment, whichever period expires last. Appropriate work file access and retrieval <br/>
<a id="pl.39.12"></a><var>39.12</var>arrangements must be made between any trainee and supervising appraiser if only one <br/>
<a id="pl.39.13"></a><var>39.13</var>party maintains custody of the work file.<br/>
<br/>
<a id="bill.0.53.0"></a><a id="pl.39.14"></a><var>39.14</var>    Sec. 53. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision <br/>
<a id="pl.39.15"></a><var>39.15</var>to read:<br/>
<a id="pl.39.16"></a><var>39.16</var>    Subd. 3a. <b>Initial application.</b> The initial application for licensing of a trainee <br/>
<a id="pl.39.17"></a><var>39.17</var>real property appraiser must identify the name and address of the supervisory appraiser <br/>
<a id="pl.39.18"></a><var>39.18</var>or appraisers. Trainee real property appraisers licensed prior to the effective date of this <br/>
<a id="pl.39.19"></a><var>39.19</var>provision must identify the name and address of their supervisory appraiser or appraisers <br/>
<a id="pl.39.20"></a><var>39.20</var>at the time of license renewal. A trainee must notify the commissioner in writing within <br/>
<a id="pl.39.21"></a><var>39.21</var>ten days of terminating or changing their relationship with any supervisory appraiser.<br/>
<a id="pl.39.22"></a><var>39.22</var>The initial application for licensing of a certified residential real property appraiser <br/>
<a id="pl.39.23"></a><var>39.23</var>and certified general real property appraiser who intends to act in the capacity of a <br/>
<a id="pl.39.24"></a><var>39.24</var>supervisory appraiser must identify the name and address of the trainee real property <br/>
<a id="pl.39.25"></a><var>39.25</var>appraiser or appraisers they intend to supervise. A certified residential real property <br/>
<a id="pl.39.26"></a><var>39.26</var>appraiser and certified general real property appraiser licensed and acting in the capacity <br/>
<a id="pl.39.27"></a><var>39.27</var>of a supervisory appraiser prior to the effective date of this provision must, at the time of <br/>
<a id="pl.39.28"></a><var>39.28</var>license renewal, identify the name and address of any trainee real property appraiser or <br/>
<a id="pl.39.29"></a><var>39.29</var>appraisers under their supervision.<br/>
<br/>
<a id="bill.0.54.0"></a><a id="pl.39.30"></a><var>39.30</var>    Sec. 54. <b>[82B.093] TRAINEE REAL PROPERTY APPRAISER.</b><br/>
<a id="pl.39.31"></a><var>39.31</var>(a) A trainee real property appraiser shall be subject to direct supervision by a <br/>
<a id="pl.39.32"></a><var>39.32</var>certified residential real property appraiser or certified general real property appraiser in <br/>
<a id="pl.39.33"></a><var>39.33</var>good standing.<br/>
<a id="pl.40.1"></a><var>40.1</var>(b) A trainee real property appraiser is permitted to have more than one supervising <br/>
<a id="pl.40.2"></a><var>40.2</var>appraiser.<br/>
<a id="pl.40.3"></a><var>40.3</var>(c) The scope of practice for the trainee real property appraiser classification is the <br/>
<a id="pl.40.4"></a><var>40.4</var>appraisal of those properties which the supervising appraiser is permitted by his or her <br/>
<a id="pl.40.5"></a><var>40.5</var>current credential and that the supervising appraiser is qualified and competent to appraise.<br/>
<a id="pl.40.6"></a><var>40.6</var>(d) A trainee real property appraiser must have a supervisor signature on each <br/>
<a id="pl.40.7"></a><var>40.7</var>appraisal that he or she signs, or must be named in the appraisal as providing significant <br/>
<a id="pl.40.8"></a><var>40.8</var>real property appraisal assistance to receive credit for experience hours on his or her <br/>
<a id="pl.40.9"></a><var>40.9</var>experience log.<br/>
<a id="pl.40.10"></a><var>40.10</var>(e) The trainee real property appraiser must maintain copies of appraisal reports he <br/>
<a id="pl.40.11"></a><var>40.11</var>or she signed or copies of appraisal reports where he or she was named as providing <br/>
<a id="pl.40.12"></a><var>40.12</var>significant real property appraisal assistance.<br/>
<a id="pl.40.13"></a><var>40.13</var>(f) The trainee real property appraiser must maintain copies of work files relating to <br/>
<a id="pl.40.14"></a><var>40.14</var>appraisal reports he or she signed.<br/>
<a id="pl.40.15"></a><var>40.15</var>(g) Separate appraisal logs must be maintained for each supervising appraiser.<br/>
<br/>
<a id="bill.0.55.0"></a><a id="pl.40.16"></a><var>40.16</var>    Sec. 55. <b>[82B.094] SUPERVISION OF TRAINEE REAL PROPERTY </b><br/>
<a id="pl.40.17"></a><var>40.17</var><b>APPRAISERS.</b><br/>
<a id="pl.40.18"></a><var>40.18</var>(a) A certified residential real property appraiser or a certified general real property <br/>
<a id="pl.40.19"></a><var>40.19</var>appraiser, in good standing, may engage a trainee real property appraiser to assist in the <br/>
<a id="pl.40.20"></a><var>40.20</var>performance of real estate appraisals, provided that the certified residential real property <br/>
<a id="pl.40.21"></a><var>40.21</var>appraiser or a certified general real property appraiser:<br/>
<a id="pl.40.22"></a><var>40.22</var>(1) has not been the subject of any license or certificate suspension or revocation or <br/>
<a id="pl.40.23"></a><var>40.23</var>has not been prohibited from supervising activities in this state or any other state within <br/>
<a id="pl.40.24"></a><var>40.24</var>the previous two years;<br/>
<a id="pl.40.25"></a><var>40.25</var>(2) has no more than three trainee real property appraisers working under supervision <br/>
<a id="pl.40.26"></a><var>40.26</var>at any one time;<br/>
<a id="pl.40.27"></a><var>40.27</var>(3) actively and personally supervises the trainee real property appraiser, which <br/>
<a id="pl.40.28"></a><var>40.28</var>includes ensuring that research of general and specific data has been adequately conducted <br/>
<a id="pl.40.29"></a><var>40.29</var>and properly reported, application of appraisal principles and methodologies has been <br/>
<a id="pl.40.30"></a><var>40.30</var>properly applied, that the analysis is sound and adequately reported, and that any analyses, <br/>
<a id="pl.40.31"></a><var>40.31</var>opinions, or conclusions are adequately developed and reported so that the appraisal <br/>
<a id="pl.40.32"></a><var>40.32</var>report is not misleading;<br/>
<a id="pl.40.33"></a><var>40.33</var>(4) discusses with the trainee real property appraiser any necessary and appropriate <br/>
<a id="pl.40.34"></a><var>40.34</var>changes that are made to a report, involving any trainee appraiser, before it is transmitted <br/>
<a id="pl.40.35"></a><var>40.35</var>to the client. Changes not discussed with the trainee real property appraiser that are made <br/>
<a id="pl.41.1"></a><var>41.1</var>by the supervising appraiser must be provided in writing to the trainee real property <br/>
<a id="pl.41.2"></a><var>41.2</var>appraiser upon completion of the appraisal report;<br/>
<a id="pl.41.3"></a><var>41.3</var>(5) accompanies the trainee real property appraiser on the inspections of the subject <br/>
<a id="pl.41.4"></a><var>41.4</var>properties and drive-by inspections of the comparable sales on all appraisal assignments <br/>
<a id="pl.41.5"></a><var>41.5</var>for which the trainee will perform work until the trainee appraiser is determined to be <br/>
<a id="pl.41.6"></a><var>41.6</var>competent, in accordance with the competency rule of USPAP for the property type;<br/>
<a id="pl.41.7"></a><var>41.7</var>(6) accepts full responsibility for the appraisal report by signing and certifying <br/>
<a id="pl.41.8"></a><var>41.8</var>that the report complies with USPAP; and<br/>
<a id="pl.41.9"></a><var>41.9</var>(7) reviews and signs the trainee real property appraiser's appraisal report or reports <br/>
<a id="pl.41.10"></a><var>41.10</var>or if the trainee appraiser is not signing the report, states in the appraisal the name of the <br/>
<a id="pl.41.11"></a><var>41.11</var>trainee and scope of the trainee's significant contribution to the report.<br/>
<a id="pl.41.12"></a><var>41.12</var>(b) The supervising appraiser must review and sign the applicable experience log <br/>
<a id="pl.41.13"></a><var>41.13</var>required to be kept by the trainee real property appraiser.<br/>
<a id="pl.41.14"></a><var>41.14</var>(c) The supervising appraiser must notify the commissioner within ten days when <br/>
<a id="pl.41.15"></a><var>41.15</var>the supervision of a trainee real property appraiser has terminated or when the trainee <br/>
<a id="pl.41.16"></a><var>41.16</var>appraiser is no longer under the supervision of the supervising appraiser.<br/>
<a id="pl.41.17"></a><var>41.17</var>(d) The supervising appraiser must maintain a separate work file for each appraisal <br/>
<a id="pl.41.18"></a><var>41.18</var>assignment.<br/>
<a id="pl.41.19"></a><var>41.19</var>(e) The supervising appraiser must verify that any trainee real property appraiser that <br/>
<a id="pl.41.20"></a><var>41.20</var>is subject to supervision is properly licensed and in good standing with the commissioner.<br/>
<br/>
<a id="bill.0.56.0"></a><a id="pl.41.21"></a><var>41.21</var>    Sec. 56. Minnesota Statutes 2008, section 82B.20, subdivision 2, is amended to read:<br/>
<a id="pl.41.22"></a><var>41.22</var>    Subd. 2. <b>Conduct prohibited.</b> No person may:<br/>
<a id="pl.41.23"></a><var>41.23</var>(1) obtain or try to obtain a license under this chapter by knowingly making a <br/>
<a id="pl.41.24"></a><var>41.24</var>false statement, submitting false information, refusing to provide complete information <br/>
<a id="pl.41.25"></a><var>41.25</var>in response to a question in an application for license, or through any form of fraud or <br/>
<a id="pl.41.26"></a><var>41.26</var>misrepresentation;<br/>
<a id="pl.41.27"></a><var>41.27</var>(2) fail to meet the minimum qualifications established by this chapter;<br/>
<a id="pl.41.28"></a><var>41.28</var>(3) be convicted, including a conviction based upon a plea of guilty or nolo <br/>
<a id="pl.41.29"></a><var>41.29</var>contendere, of a crime that is substantially related to the qualifications, functions, and <br/>
<a id="pl.41.30"></a><var>41.30</var>duties of a person developing real estate appraisals and communicating real estate <br/>
<a id="pl.41.31"></a><var>41.31</var>appraisals to others;<br/>
<a id="pl.41.32"></a><var>41.32</var>(4) engage in an act or omission involving dishonesty, fraud, or misrepresentation <br/>
<a id="pl.41.33"></a><var>41.33</var>with the intent to substantially benefit the license holder or another person or with the <br/>
<a id="pl.41.34"></a><var>41.34</var>intent to substantially injure another person;<br/>
<a id="pl.42.1"></a><var>42.1</var>(5) engage in a violation of any of the standards for the development or <br/>
<a id="pl.42.2"></a><var>42.2</var>communication of real estate appraisals as provided in this chapter;<br/>
<a id="pl.42.3"></a><var>42.3</var>(6) fail or refuse without good cause to exercise reasonable diligence in developing <br/>
<a id="pl.42.4"></a><var>42.4</var>an appraisal, preparing an appraisal report, or communicating an appraisal;<br/>
<a id="pl.42.5"></a><var>42.5</var>(7) engage in negligence or incompetence in developing an appraisal, in preparing <br/>
<a id="pl.42.6"></a><var>42.6</var>an appraisal report, or in communicating an appraisal;<br/>
<a id="pl.42.7"></a><var>42.7</var>(8) willfully disregard or violate any of the provisions of this chapter or the rules of <br/>
<a id="pl.42.8"></a><var>42.8</var>the commissioner for the administration and enforcement of the provisions of this chapter;<br/>
<a id="pl.42.9"></a><var>42.9</var>(9) accept an appraisal assignment when the employment itself is contingent upon <br/>
<a id="pl.42.10"></a><var>42.10</var>the appraiser reporting a predetermined estimate, analysis, or opinion, or where the fee <br/>
<a id="pl.42.11"></a><var>42.11</var>to be paid is contingent upon the opinion, conclusion, or valuation reached, or upon the <br/>
<a id="pl.42.12"></a><var>42.12</var>consequences resulting from the appraisal assignment;<br/>
<a id="pl.42.13"></a><var>42.13</var>(10) violate the confidential nature of governmental records to which the person <br/>
<a id="pl.42.14"></a><var>42.14</var>gained access through employment or engagement as an appraiser by a governmental <br/>
<a id="pl.42.15"></a><var>42.15</var>agency;<br/>
<a id="pl.42.16"></a><var>42.16</var>(11) offer, pay, or give, and no person shall accept, any compensation or other thing <br/>
<a id="pl.42.17"></a><var>42.17</var>of value from a real estate appraiser by way of commission-splitting, rebate, finder's fee, <br/>
<a id="pl.42.18"></a><var>42.18</var>or otherwise in connection with a real estate appraisal. This prohibition does not apply <br/>
<a id="pl.42.19"></a><var>42.19</var>to transactions among persons licensed under this chapter if the transactions involve <br/>
<a id="pl.42.20"></a><var>42.20</var>appraisals for which the license is required;<br/>
<a id="pl.42.21"></a><var>42.21</var>(12) engage or authorize a person, except a person licensed under this chapter, to act <br/>
<a id="pl.42.22"></a><var>42.22</var>as a real estate appraiser on the appraiser's behalf;<br/>
<a id="pl.42.23"></a><var>42.23</var>(13) violate standards of professional practice;<br/>
<a id="pl.42.24"></a><var>42.24</var>(14) make an oral appraisal report without also making a written report within a <br/>
<a id="pl.42.25"></a><var>42.25</var>reasonable time after the oral report is made;<br/>
<a id="pl.42.26"></a><var>42.26</var>(15) represent a market analysis to be an appraisal report;<br/>
<a id="pl.42.27"></a><var>42.27</var>(16) give an appraisal in any circumstances where the appraiser has a conflict of <br/>
<a id="pl.42.28"></a><var>42.28</var>interest, as determined under rules adopted by the commissioner; or<br/>
<a id="pl.42.29"></a><var>42.29</var>(17) engage in other acts the commissioner by rule prohibits.<br/>
<a id="pl.42.30"></a><var>42.30</var>No person, including a mortgage originator, appraisal management company, real <br/>
<a id="pl.42.31"></a><var>42.31</var>estate broker or salesperson, appraiser, or other licensee, registrant, or certificate holder <br/>
<a id="pl.42.32"></a><var>42.32</var>regulated by the commissioner may improperly influence or attempt to improperly <br/>
<a id="pl.42.33"></a><var>42.33</var>influence the development, reporting, result, or review of a real estate appraisal. Prohibited <br/>
<a id="pl.42.34"></a><var>42.34</var>acts include blacklisting, boycotting, intimidation, coercion, and any other means that <br/>
<a id="pl.42.35"></a><var>42.35</var>impairs or may impair the independent judgment of the appraiser, including but not <br/>
<a id="pl.42.36"></a><var>42.36</var>limited to the withholding or threatened withholding of payment for an appraisal fee, or <br/>
<a id="pl.43.1"></a><var>43.1</var>the conditioning of the payment of any appraisal fee upon the opinion, conclusion, or <br/>
<a id="pl.43.2"></a><var>43.2</var>valuation to be reached, or a request that the appraiser report a predetermined opinion, <br/>
<a id="pl.43.3"></a><var>43.3</var>conclusion, or valuation, or the desired valuation of any person, or withholding or <br/>
<a id="pl.43.4"></a><var>43.4</var>threatening to withhold future work in order to obtain a desired value on a current or <br/>
<a id="pl.43.5"></a><var>43.5</var>proposed appraisal assignment.<br/>
<br/>
<a id="bill.0.57.0"></a><a id="pl.43.6"></a><var>43.6</var>    Sec. 57. Minnesota Statutes 2008, section 319B.02, is amended by adding a <br/>
<a id="pl.43.7"></a><var>43.7</var>subdivision to read:<br/>
<a id="pl.43.8"></a><var>43.8</var>    Subd. 21a. <b>Surviving spouse.</b>  "Surviving spouse" means a surviving spouse of a <br/>
<a id="pl.43.9"></a><var>43.9</var>deceased professional as an individual, as the personal representative of the estate of the <br/>
<a id="pl.43.10"></a><var>43.10</var>decedent, as the trustee of an inter vivos or testamentary trust created by the decedent, or <br/>
<a id="pl.43.11"></a><var>43.11</var>as the sole heir or beneficiary of an estate or trust of which the personal representative or <br/>
<a id="pl.43.12"></a><var>43.12</var>trustee is a bank or other institution that has trust powers.<br/>
<a id="pl.43.13"></a><var>43.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.43.14"></a><var>43.14</var>and applies to surviving spouses of professionals who die on or after that date.<br/>
<br/>
<a id="bill.0.58.0"></a><a id="pl.43.15"></a><var>43.15</var>    Sec. 58. Minnesota Statutes 2008, section 319B.07, subdivision 1, is amended to read:<br/>
<a id="pl.43.16"></a><var>43.16</var>    Subdivision 1. <b>Ownership of interests restricted.</b> Ownership interests in a <br/>
<a id="pl.43.17"></a><var>43.17</var>professional firm may not be owned or held, either directly or indirectly, except by any of <br/>
<a id="pl.43.18"></a><var>43.18</var>the following:<br/>
<a id="pl.43.19"></a><var>43.19</var>(1) professionals who, with respect to at least one category of the pertinent <br/>
<a id="pl.43.20"></a><var>43.20</var>professional services, are licensed and not disqualified;<br/>
<a id="pl.43.21"></a><var>43.21</var>(2) general partnerships, other than limited liability partnerships, authorized to <br/>
<a id="pl.43.22"></a><var>43.22</var>furnish at least one category of the professional firm's pertinent professional services;<br/>
<a id="pl.43.23"></a><var>43.23</var>(3) other professional firms authorized to furnish at least one category of the <br/>
<a id="pl.43.24"></a><var>43.24</var>professional firm's pertinent professional services;<br/>
<a id="pl.43.25"></a><var>43.25</var>(4) a voting trust established with respect to some or all of the ownership interests <br/>
<a id="pl.43.26"></a><var>43.26</var>in the professional firm, if (i) the professional firm's generally applicable governing law <br/>
<a id="pl.43.27"></a><var>43.27</var>permits the establishment of voting trusts, and (ii) all the voting trustees and all the holders <br/>
<a id="pl.43.28"></a><var>43.28</var>of beneficial interests in the trust are professionals licensed to furnish at least one category <br/>
<a id="pl.43.29"></a><var>43.29</var>of the pertinent professional services; and<br/>
<a id="pl.43.30"></a><var>43.30</var>(5) an employee stock ownership plan as defined in section 4975(e)(7) of the <br/>
<a id="pl.43.31"></a><var>43.31</var>Internal Revenue Code of 1986, as amended, if (i) all the voting trustees of the plan are <br/>
<a id="pl.43.32"></a><var>43.32</var>professionals licensed to furnish at least one category of the pertinent professional services, <br/>
<a id="pl.43.33"></a><var>43.33</var>and (ii) the ownership interests are not directly issued to anyone other than professionals <br/>
<a id="pl.43.34"></a><var>43.34</var>licensed to furnish at least one category of the pertinent professional services; and<br/>
<a id="pl.44.1"></a><var>44.1</var>(6) sole ownership by a surviving spouse of a deceased professional who was the <br/>
<a id="pl.44.2"></a><var>44.2</var>sole owner of the professional firm at the time of the professional's death, but only during <br/>
<a id="pl.44.3"></a><var>44.3</var>the period of time ending one year after the death of the professional.<br/>
<a id="pl.44.4"></a><var>44.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.44.5"></a><var>44.5</var>and applies to surviving spouses of professionals who die on or after that date.<br/>
<br/>
<a id="bill.0.59.0"></a><a id="pl.44.6"></a><var>44.6</var>    Sec. 59. Minnesota Statutes 2008, section 319B.08, is amended to read:<br/>
<a id="pl.44.7"></a><var>44.7</var><b>319B.08 EFFECT OF DEATH OR DISQUALIFICATION OF OWNER.</b><br/>
<a id="pl.44.8"></a><var>44.8</var>    Subdivision 1. <b>Acquisition of interests or automatic loss of professional </b><br/>
<a id="pl.44.9"></a><var>44.9</var><b>firm status.</b> (a) If an owner dies or becomes disqualified to practice all the pertinent <br/>
<a id="pl.44.10"></a><var>44.10</var>professional services, then either:<br/>
<a id="pl.44.11"></a><var>44.11</var>(1) within 90 days after the death or the beginning of the disqualification, all of <br/>
<a id="pl.44.12"></a><var>44.12</var>that owner's ownership interest must be acquired by the professional firm, by persons <br/>
<a id="pl.44.13"></a><var>44.13</var>permitted by section 
         <statute_ref>319B.07</statute_ref> to own the ownership interest, or by some combination; or <br/>
<a id="pl.44.14"></a><var>44.14</var>(2) at the end of the 90-day period, the firm's election under section 
         <statute_ref>319B.03, <br/>
<a id="pl.44.15"></a><var>44.15</var>subdivision 2
         </statute_ref>, or 
         <statute_ref>319B.04, subdivision 2</statute_ref>, is automatically rescinded, the firm loses <br/>
<a id="pl.44.16"></a><var>44.16</var>its status as a professional firm, and the authority created by that election and status <br/>
<a id="pl.44.17"></a><var>44.17</var>terminates. <br/>
<a id="pl.44.18"></a><var>44.18</var>An acquisition satisfies clause (1) if all right and title to the deceased or disqualified <br/>
<a id="pl.44.19"></a><var>44.19</var>owner's interest are acquired before the end of the 90-day period, even if some or all of <br/>
<a id="pl.44.20"></a><var>44.20</var>the consideration is paid after the end of the 90-day period. However, payment cannot be <br/>
<a id="pl.44.21"></a><var>44.21</var>secured in any way that violates sections 
         <statute_ref>319B.01</statute_ref> to 
         <statute_ref>319B.12</statute_ref>. <br/>
<a id="pl.44.22"></a><var>44.22</var>(b) If automatic rescission does occur under paragraph (a), the firm must immediately <br/>
<a id="pl.44.23"></a><var>44.23</var>and accordingly update its organizational document, certificate of authority, or statement <br/>
<a id="pl.44.24"></a><var>44.24</var>of foreign qualification. Even without that updating, however, the rescission, loss of <br/>
<a id="pl.44.25"></a><var>44.25</var>status, and termination of authority provided by paragraph (a) occur automatically at the <br/>
<a id="pl.44.26"></a><var>44.26</var>end of the 90-day period.<br/>
<a id="pl.44.27"></a><var>44.27</var>    Subd. 2. <b>Terms of acquisition.</b> (a) If:<br/>
<a id="pl.44.28"></a><var>44.28</var>(1) an owner dies or becomes disqualified to practice all the pertinent professional <br/>
<a id="pl.44.29"></a><var>44.29</var>services;<br/>
<a id="pl.44.30"></a><var>44.30</var>(2) the professional firm has in effect a mechanism, valid according to the <br/>
<a id="pl.44.31"></a><var>44.31</var>professional firm's generally applicable governing law, to effect a purchase of the deceased <br/>
<a id="pl.44.32"></a><var>44.32</var>or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), <br/>
<a id="pl.44.33"></a><var>44.33</var>clause (1); and<br/>
<a id="pl.45.1"></a><var>45.1</var>(3) the professional firm does not agree with the disqualified owner or the <br/>
<a id="pl.45.2"></a><var>45.2</var>representative of the deceased owner to set aside the mechanism,<br/>
<a id="pl.45.3"></a><var>45.3</var>then that mechanism applies.<br/>
<a id="pl.45.4"></a><var>45.4</var>(b) If:<br/>
<a id="pl.45.5"></a><var>45.5</var>(1) an owner dies or becomes disqualified to practice all the pertinent professional <br/>
<a id="pl.45.6"></a><var>45.6</var>services;<br/>
<a id="pl.45.7"></a><var>45.7</var>(2) the professional firm has in effect no mechanism as described in paragraph (a), or <br/>
<a id="pl.45.8"></a><var>45.8</var>has agreed as mentioned in paragraph (a), clause (3), to set aside that mechanism; and<br/>
<a id="pl.45.9"></a><var>45.9</var>(3) consistent with its generally applicable governing law, the professional firm <br/>
<a id="pl.45.10"></a><var>45.10</var>agrees with the disqualified owner or the representative of the deceased owner, before <br/>
<a id="pl.45.11"></a><var>45.11</var>the end of the 90-day period, to an arrangement to effect a purchase of the deceased <br/>
<a id="pl.45.12"></a><var>45.12</var>or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a), <br/>
<a id="pl.45.13"></a><var>45.13</var>clause (1),<br/>
<a id="pl.45.14"></a><var>45.14</var>then that arrangement applies.<br/>
<a id="pl.45.15"></a><var>45.15</var>(c) If:<br/>
<a id="pl.45.16"></a><var>45.16</var>(1) an owner of a Minnesota professional firm dies or becomes disqualified to <br/>
<a id="pl.45.17"></a><var>45.17</var>practice all the pertinent professional services;<br/>
<a id="pl.45.18"></a><var>45.18</var>(2) the Minnesota professional firm does not have in effect a mechanism as described <br/>
<a id="pl.45.19"></a><var>45.19</var>in paragraph (a);<br/>
<a id="pl.45.20"></a><var>45.20</var>(3) the Minnesota professional firm does not make an arrangement as described in <br/>
<a id="pl.45.21"></a><var>45.21</var>paragraph (b); and<br/>
<a id="pl.45.22"></a><var>45.22</var>(4) no provision or tenet of the Minnesota professional firm's generally applicable <br/>
<a id="pl.45.23"></a><var>45.23</var>governing law and no provision of any document or agreement authorized by the <br/>
<a id="pl.45.24"></a><var>45.24</var>Minnesota professional firm's generally applicable governing law expressly precludes an <br/>
<a id="pl.45.25"></a><var>45.25</var>acquisition under this paragraph,<br/>
<a id="pl.45.26"></a><var>45.26</var>then the firm may acquire the deceased or disqualified owner's ownership interest as <br/>
<a id="pl.45.27"></a><var>45.27</var>stated in this paragraph. To act under this paragraph, the Minnesota professional firm <br/>
<a id="pl.45.28"></a><var>45.28</var>must within 90 days after the death or beginning of the disqualification tender to the <br/>
<a id="pl.45.29"></a><var>45.29</var>representative of the deceased owner's estate or to the disqualified owner the fair value <br/>
<a id="pl.45.30"></a><var>45.30</var>of the owner's ownership interest, as determined by the Minnesota professional firm's <br/>
<a id="pl.45.31"></a><var>45.31</var>governance authority. That price must be at least the book value, as determined in <br/>
<a id="pl.45.32"></a><var>45.32</var>accordance with the Minnesota professional firm's regular method of accounting, as of the <br/>
<a id="pl.45.33"></a><var>45.33</var>end of the month immediately preceding the death or loss of license. The tender must be <br/>
<a id="pl.45.34"></a><var>45.34</var>unconditional and may not attempt to have the recipient waive any rights provided in this <br/>
<a id="pl.45.35"></a><var>45.35</var>section. If the Minnesota professional firm tenders a price under this paragraph within <br/>
<a id="pl.46.1"></a><var>46.1</var>the 90-day period, the deceased or disqualified owner's ownership interest immediately <br/>
<a id="pl.46.2"></a><var>46.2</var>transfers to the Minnesota professional firm regardless of any dispute as to the fairness <br/>
<a id="pl.46.3"></a><var>46.3</var>of the price. A disqualified owner or representative of the deceased owner's estate who <br/>
<a id="pl.46.4"></a><var>46.4</var>disputes the fairness of the tendered price may take the tendered price and bring suit <br/>
<a id="pl.46.5"></a><var>46.5</var>in district court seeking additional payment. The suit must be commenced within one <br/>
<a id="pl.46.6"></a><var>46.6</var>year after the payment is tendered. A Minnesota professional firm may agree with a <br/>
<a id="pl.46.7"></a><var>46.7</var>disqualified owner or the representative of a deceased owner's estate to delay all or part <br/>
<a id="pl.46.8"></a><var>46.8</var>of the payment due under this paragraph, but all right and title to the owner's ownership <br/>
<a id="pl.46.9"></a><var>46.9</var>interests must be acquired before the end of the 90-day period and payment may not be <br/>
<a id="pl.46.10"></a><var>46.10</var>secured in any way that violates sections 
         <statute_ref>319B.01</statute_ref> to 
         <statute_ref>319B.12</statute_ref>. <br/>
<a id="pl.46.11"></a><var>46.11</var>    Subd. 3. <b>Expiration of firm-issued option on death or disqualification of holder.</b><br/>
<a id="pl.46.12"></a><var>46.12</var>If the holder of an option issued under section 
         <statute_ref>319B.07, subdivision 3</statute_ref>, paragraph (a), <br/>
<a id="pl.46.13"></a><var>46.13</var>clause (1), dies or becomes disqualified, the option automatically expires. <br/>
<a id="pl.46.14"></a><var>46.14</var>    Subd. 4. <b>One-year period for surviving spouse of sole owner.</b> For purposes <br/>
<a id="pl.46.15"></a><var>46.15</var>of this section, each mention of "90 days," "90-day period," or similar term shall be <br/>
<a id="pl.46.16"></a><var>46.16</var>interpreted as one year after the death of a professional who was the sole owner of the <br/>
<a id="pl.46.17"></a><var>46.17</var>professional firm if the surviving spouse of the deceased professional owns and controls <br/>
<a id="pl.46.18"></a><var>46.18</var>the firm after the death.<br/>
<a id="pl.46.19"></a><var>46.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.46.20"></a><var>46.20</var>and applies to surviving spouses of professionals who die on or after that date.<br/>
<br/>
<a id="bill.0.60.0"></a><a id="pl.46.21"></a><var>46.21</var>    Sec. 60. Minnesota Statutes 2008, section 319B.09, subdivision 1, is amended to read:<br/>
<a id="pl.46.22"></a><var>46.22</var>    Subdivision 1. <b>Governance authority.</b> (a) Except as stated in paragraph (b), a <br/>
<a id="pl.46.23"></a><var>46.23</var>professional firm's governance authority must rest with:<br/>
<a id="pl.46.24"></a><var>46.24</var>(1) one or more professionals, each of whom is licensed to furnish at least one <br/>
<a id="pl.46.25"></a><var>46.25</var>category of the pertinent professional services; or<br/>
<a id="pl.46.26"></a><var>46.26</var>(2) a surviving spouse of a deceased professional who was the sole owner of the <br/>
<a id="pl.46.27"></a><var>46.27</var>professional firm, while the surviving spouse owns and controls the firm, but only during <br/>
<a id="pl.46.28"></a><var>46.28</var>the period of time ending one year after the death of the professional.<br/>
<a id="pl.46.29"></a><var>46.29</var>(b) In a Minnesota professional firm organized under chapter 317A and in a foreign <br/>
<a id="pl.46.30"></a><var>46.30</var>professional firm organized under the nonprofit corporation statute of another state, at least <br/>
<a id="pl.46.31"></a><var>46.31</var>one individual possessing governance authority must be a professional licensed to furnish <br/>
<a id="pl.46.32"></a><var>46.32</var>at least one category of the pertinent professional services.<br/>
<a id="pl.46.33"></a><var>46.33</var>(c) Individuals who possess governance authority within a professional firm may <br/>
<a id="pl.46.34"></a><var>46.34</var>delegate administrative and operational matters to others. No decision entailing the <br/>
<a id="pl.47.1"></a><var>47.1</var>exercise of professional judgment may be delegated or assigned to anyone who is not a <br/>
<a id="pl.47.2"></a><var>47.2</var>professional licensed to practice the professional services involved in the decision.<br/>
<a id="pl.47.3"></a><var>47.3</var>(d) An individual whose license to practice any pertinent professional services is <br/>
<a id="pl.47.4"></a><var>47.4</var>revoked or suspended may not, during the time the revocation or suspension is in effect, <br/>
<a id="pl.47.5"></a><var>47.5</var>possess or exercise governance authority, hold a position with governance authority, <br/>
<a id="pl.47.6"></a><var>47.6</var>or take part in any decision or other action constituting an exercise of governance <br/>
<a id="pl.47.7"></a><var>47.7</var>authority. Nothing in this chapter prevents a board from further terminating, restricting, <br/>
<a id="pl.47.8"></a><var>47.8</var>limiting, qualifying, or imposing conditions on an individual's governance role as board <br/>
<a id="pl.47.9"></a><var>47.9</var>disciplinary action.<br/>
<a id="pl.47.10"></a><var>47.10</var>(e) A professional firm owned and controlled by a surviving spouse must comply <br/>
<a id="pl.47.11"></a><var>47.11</var>with all requirements of this chapter, except those clearly inapplicable to a firm owned <br/>
<a id="pl.47.12"></a><var>47.12</var>and governed by a surviving spouse who is not a professional of the same type as the <br/>
<a id="pl.47.13"></a><var>47.13</var>surviving spouse's decedent.<br/>
<a id="pl.47.14"></a><var>47.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.47.15"></a><var>47.15</var>and applies to surviving spouses of professionals who die on or after that date.<br/>
<br/>
<a id="bill.0.61.0"></a><a id="pl.47.16"></a><var>47.16</var>    Sec. 61. Minnesota Statutes 2008, section 325E.27, is amended to read:<br/>
<a id="pl.47.17"></a><var>47.17</var><b>325E.27 USE OF PRERECORDED OR SYNTHESIZED VOICE MESSAGES.</b><br/>
<a id="pl.47.18"></a><var>47.18</var>A caller shall not use or connect to a telephone line an automatic dialing-announcing <br/>
<a id="pl.47.19"></a><var>47.19</var>device unless: (1) the subscriber has knowingly or voluntarily requested, consented <br/>
<a id="pl.47.20"></a><var>47.20</var>to, permitted, or authorized receipt of the message; or (2) the message is immediately <br/>
<a id="pl.47.21"></a><var>47.21</var>preceded by a live operator who obtains the subscriber's consent before the message is <br/>
<a id="pl.47.22"></a><var>47.22</var>delivered. This section and section 
         <statute_ref>325E.30</statute_ref> do not apply to (1) messages from school <br/>
<a id="pl.47.23"></a><var>47.23</var>districts to students, parents, or employees, (2) messages to subscribers with whom the <br/>
<a id="pl.47.24"></a><var>47.24</var>caller has a current business or personal relationship, or (3) messages advising employees <br/>
<a id="pl.47.25"></a><var>47.25</var>of work schedules. This section does not apply to messages from a nonprofit tax-exempt <br/>
<a id="pl.47.26"></a><var>47.26</var>charitable organization sent solely for the purpose of soliciting voluntary donations of <br/>
<a id="pl.47.27"></a><var>47.27</var>clothing to benefit disabled United States military veterans and containing no request for <br/>
<a id="pl.47.28"></a><var>47.28</var>monetary donations or other solicitations of any kind. <br/>
<br/>
<a id="bill.0.62.0"></a><a id="pl.47.29"></a><var>47.29</var>    Sec. 62. <b>[325E.3161] TELEPHONE SOLICITATIONS; EXPIRATION </b><br/>
<a id="pl.47.30"></a><var>47.30</var><b>PROVISION.</b><br/>
<a id="pl.47.31"></a><var>47.31</var>    Sections 325E.311 to 325E.316 expire December 31, 2012.<br/>
<br/>
<a id="bill.0.63.0"></a><a id="pl.48.1"></a><var>48.1</var>    Sec. 63. <b>[325E.66] INSURANCE CLAIMS FOR RESIDENTIAL ROOFING </b><br/>
<a id="pl.48.2"></a><var>48.2</var><b>GOODS AND SERVICES.</b><br/>
<a id="pl.48.3"></a><var>48.3</var>    Subdivision 1. <b>Payment or rebate of insurance deductible.</b> A residential roofer as <br/>
<a id="pl.48.4"></a><var>48.4</var>defined in section 326B.802, subdivision 14, providing goods and services to be paid by an <br/>
<a id="pl.48.5"></a><var>48.5</var>insured from the proceeds of a property or casualty insurance policy, shall not advertise or <br/>
<a id="pl.48.6"></a><var>48.6</var>promise to pay or rebate all or part of any applicable insurance deductible. If a residential <br/>
<a id="pl.48.7"></a><var>48.7</var>roofer violates this section, the insurer to whom the insured tendered the claim shall not be <br/>
<a id="pl.48.8"></a><var>48.8</var>obligated to consider the estimate prepared by the residential roofer.<br/>
<a id="pl.48.9"></a><var>48.9</var>    Subd. 2. <b>Violation.</b> If a residential roofer violates subdivision 1, the insured or <br/>
<a id="pl.48.10"></a><var>48.10</var>the applicable insurer may bring an action against the roofer in a court of competent <br/>
<a id="pl.48.11"></a><var>48.11</var>jurisdiction for damages sustained by the insured or insurer as a consequence of the <br/>
<a id="pl.48.12"></a><var>48.12</var>residential roofer's violation.<br/>
<br/>
<a id="bill.0.64.0"></a><a id="pl.48.13"></a><var>48.13</var>    Sec. 64. Minnesota Statutes 2008, section 332.70, subdivision 1, is amended to read:<br/>
<a id="pl.48.14"></a><var>48.14</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section: <br/>
<a id="pl.48.15"></a><var>48.15</var>    (a) "Business screening service" means a person regularly engaged in the business of <br/>
<a id="pl.48.16"></a><var>48.16</var>collecting, assembling, evaluating, or disseminating criminal record information records <br/>
<a id="pl.48.17"></a><var>48.17</var>on individuals for a fee. Business screening service does not include a government entity, <br/>
<a id="pl.48.18"></a><var>48.18</var>as defined in section 
<statute_ref>13.02</statute_ref>, or the news media.<br/>
<a id="pl.48.19"></a><var>48.19</var>    (b) "Conviction" has the meaning given in section 
         <statute_ref>609.02, subdivision 5</statute_ref>.<br/>
<a id="pl.48.20"></a><var>48.20</var>    (c) "Criminal record" means a public record of an arrest, citation, prosecution, <br/>
<a id="pl.48.21"></a><var>48.21</var>criminal proceeding, or conviction. "Criminal proceeding" does not include a written <br/>
<a id="pl.48.22"></a><var>48.22</var>court opinion.<br/>
<a id="pl.48.23"></a><var>48.23</var>(d) "Government entity" has the meaning given in section 13.02.<br/>
<a id="pl.48.24"></a><var>48.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.65.0"></a><a id="pl.48.25"></a><var>48.25</var>    Sec. 65. Minnesota Statutes 2008, section 332.70, subdivision 2, is amended to read:<br/>
<a id="pl.48.26"></a><var>48.26</var>    Subd. 2. <b>Criminal records.</b> A business screening service must not disseminate a <br/>
<a id="pl.48.27"></a><var>48.27</var>criminal record unless the record has been updated within the previous month 90 days.<br/>
<a id="pl.48.28"></a><var>48.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.66.0"></a><a id="pl.48.29"></a><var>48.29</var>    Sec. 66. Minnesota Statutes 2008, section 332.70, subdivision 3, is amended to read:<br/>
<a id="pl.48.30"></a><var>48.30</var>    Subd. 3. <b>Correction and deletion of records.</b> (a) If the completeness or accuracy <br/>
<a id="pl.48.31"></a><var>48.31</var>of a criminal record maintained by a business screening service is disputed by the <br/>
<a id="pl.48.32"></a><var>48.32</var>individual who is the subject of the record, the screening service shall, without charge, <br/>
<a id="pl.49.1"></a><var>49.1</var>investigate the disputed record. In conducting an investigation, the business screening <br/>
<a id="pl.49.2"></a><var>49.2</var>service shall review and consider all relevant information submitted by the subject of the <br/>
<a id="pl.49.3"></a><var>49.3</var>record with respect to the disputed record to determine whether the record maintained by <br/>
<a id="pl.49.4"></a><var>49.4</var>the business screening service accurately reflects the content of the record maintained by <br/>
<a id="pl.49.5"></a><var>49.5</var>the government entity or the court.<br/>
<a id="pl.49.6"></a><var>49.6</var>    (b) If the disputed record is found to be inaccurate or incomplete, the business <br/>
<a id="pl.49.7"></a><var>49.7</var>screening service shall promptly correct the record If, upon investigation, the business <br/>
<a id="pl.49.8"></a><var>49.8</var>screening service determines that the record does not accurately reflect the content of the <br/>
<a id="pl.49.9"></a><var>49.9</var>record maintained by the government entity or the court, the business screening service <br/>
<a id="pl.49.10"></a><var>49.10</var>shall correct the disputed record to accurately reflect the content of that record. If the <br/>
<a id="pl.49.11"></a><var>49.11</var>disputed record is found to be sealed, expunged, or the subject of a pardon, the business <br/>
<a id="pl.49.12"></a><var>49.12</var>screening service shall promptly delete the record.<br/>
<a id="pl.49.13"></a><var>49.13</var>    (c) A business screening service may terminate an investigation of a disputed record <br/>
<a id="pl.49.14"></a><var>49.14</var>if the business screening agency reasonably determines that the dispute is frivolous, which <br/>
<a id="pl.49.15"></a><var>49.15</var>may be based on the failure of the subject of the record to provide sufficient information to <br/>
<a id="pl.49.16"></a><var>49.16</var>investigate the disputed record. Upon making a determination that the dispute is frivolous, <br/>
<a id="pl.49.17"></a><var>49.17</var>the business screening service shall inform the subject of the record of the specific reasons <br/>
<a id="pl.49.18"></a><var>49.18</var>why it has determined that the dispute is frivolous and provide a description of any <br/>
<a id="pl.49.19"></a><var>49.19</var>information required to investigate the disputed record.<br/>
<a id="pl.49.20"></a><var>49.20</var>    (d) The business screening service shall notify the subject of the disputed record <br/>
<a id="pl.49.21"></a><var>49.21</var>of the correction or deletion of the record or of the termination or completion of the <br/>
<a id="pl.49.22"></a><var>49.22</var>investigation related to the record within 30 days of the date when the agency receives <br/>
<a id="pl.49.23"></a><var>49.23</var>notice of the dispute from the subject of the record.<br/>
<a id="pl.49.24"></a><var>49.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.67.0"></a><a id="pl.49.25"></a><var>49.25</var>    Sec. 67. Minnesota Statutes 2008, section 332.70, subdivision 4, is amended to read:<br/>
<a id="pl.49.26"></a><var>49.26</var>    Subd. 4. <b>Date and notice required.</b> If a business screening service that disseminates <br/>
<a id="pl.49.27"></a><var>49.27</var>a criminal record that is collected on or after July 1, 2009, it must include the date when <br/>
<a id="pl.49.28"></a><var>49.28</var>the record was collected and by the business screening service. A business screening <br/>
<a id="pl.49.29"></a><var>49.29</var>service that disseminates a criminal record must include a notice that the information may <br/>
<a id="pl.49.30"></a><var>49.30</var>include criminal records that have been expunged, sealed, or otherwise have become <br/>
<a id="pl.49.31"></a><var>49.31</var>inaccessible to the public since that date.<br/>
<a id="pl.49.32"></a><var>49.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.68.0"></a><a id="pl.50.1"></a><var>50.1</var>    Sec. 68. Minnesota Statutes 2008, section 332A.02, subdivision 13, as amended by <br/>
<a id="pl.50.2"></a><var>50.2</var>Laws 2009, chapter 37, article 4, section 12, is amended to read:<br/>
<a id="pl.50.3"></a><var>50.3</var>    Subd. 13. <b>Debt settlement services provider.</b> "Debt settlement services provider" <br/>
<a id="pl.50.4"></a><var>50.4</var>has the meaning given in section 
         <statute_ref>332B.02, subdivision 11 13</statute_ref>. <br/>
<br/>
<a id="bill.0.69.0"></a><a id="pl.50.5"></a><var>50.5</var>    Sec. 69. Minnesota Statutes 2008, section 332A.14, as amended by Laws 2009, chapter <br/>
<a id="pl.50.6"></a><var>50.6</var>37, article 4, section 17, is amended to read:<br/>
<a id="pl.50.7"></a><var>50.7</var><b>332A.14 PROHIBITIONS.</b><br/>
<a id="pl.50.8"></a><var>50.8</var>    No debt management services provider shall:<br/>
<a id="pl.50.9"></a><var>50.9</var>    (1) purchase from a creditor any obligation of a debtor;<br/>
<a id="pl.50.10"></a><var>50.10</var>    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any <br/>
<a id="pl.50.11"></a><var>50.11</var>legal process, including but not limited to garnishment and repossession of personal <br/>
<a id="pl.50.12"></a><var>50.12</var>property, against any debtor while the debt management services agreement between the <br/>
<a id="pl.50.13"></a><var>50.13</var>registrant and the debtor remains executory;<br/>
<a id="pl.50.14"></a><var>50.14</var>    (3) advise, counsel, or encourage a debtor to stop paying a creditor, or imply, infer, <br/>
<a id="pl.50.15"></a><var>50.15</var>encourage, or in any other way indicate, that it is advisable to stop paying a creditor;<br/>
<a id="pl.50.16"></a><var>50.16</var>(4) sanction or condone the act by a debtor of ceasing payments to a creditor or <br/>
<a id="pl.50.17"></a><var>50.17</var>imply, infer, or in any manner indicate that the act of ceasing payments to a creditor is <br/>
<a id="pl.50.18"></a><var>50.18</var>advisable or beneficial to the debtor;<br/>
<a id="pl.50.19"></a><var>50.19</var>    (5) require as a condition of performing debt management services the purchase of <br/>
<a id="pl.50.20"></a><var>50.20</var>any services, stock, insurance, commodity, or other property or any interest therein either <br/>
<a id="pl.50.21"></a><var>50.21</var>by the debtor or the registrant;<br/>
<a id="pl.50.22"></a><var>50.22</var>    (6) compromise any debts unless the prior written or contractual approval of the <br/>
<a id="pl.50.23"></a><var>50.23</var>debtor has been obtained to such compromise and unless such compromise inures solely <br/>
<a id="pl.50.24"></a><var>50.24</var>to the benefit of the debtor;<br/>
<a id="pl.50.25"></a><var>50.25</var>    (7) receive from any debtor as security or in payment of any fee a promissory note <br/>
<a id="pl.50.26"></a><var>50.26</var>or other promise to pay or any mortgage or other security, whether as to real or personal <br/>
<a id="pl.50.27"></a><var>50.27</var>property;<br/>
<a id="pl.50.28"></a><var>50.28</var>    (8) lend money or provide credit to any debtor if any interest or fee is charged, <br/>
<a id="pl.50.29"></a><var>50.29</var>or directly or indirectly collect any fee for referring, advising, procuring, arranging, or <br/>
<a id="pl.50.30"></a><var>50.30</var>assisting a consumer in obtaining any extension of credit or other debtor service from a <br/>
<a id="pl.50.31"></a><var>50.31</var>lender or debt management services provider;<br/>
<a id="pl.50.32"></a><var>50.32</var>    (9) structure a debt management services agreement that would result in negative <br/>
<a id="pl.50.33"></a><var>50.33</var>amortization of any debt in the plan;<br/>
<a id="pl.50.34"></a><var>50.34</var>    (10) engage in any unfair, deceptive, or unconscionable act or practice in connection <br/>
<a id="pl.50.35"></a><var>50.35</var>with any service provided to any debtor;<br/>
<a id="pl.51.1"></a><var>51.1</var>    (11) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other <br/>
<a id="pl.51.2"></a><var>51.2</var>compensation to any person for referring any prospective customer to the registrant or for <br/>
<a id="pl.51.3"></a><var>51.3</var>enrolling a debtor in a debt management services plan, or provide any other incentives <br/>
<a id="pl.51.4"></a><var>51.4</var>for employees or agents of the debt management services provider to induce debtors to <br/>
<a id="pl.51.5"></a><var>51.5</var>enter into a debt management services plan;<br/>
<a id="pl.51.6"></a><var>51.6</var>    (12) receive any cash, fee, gift, bonus, premium, reward, or other compensation <br/>
<a id="pl.51.7"></a><var>51.7</var>from any person other than the debtor or a person on the debtor's behalf in connection <br/>
<a id="pl.51.8"></a><var>51.8</var>with activities as a registrant, provided that this paragraph does not apply to a registrant <br/>
<a id="pl.51.9"></a><var>51.9</var>which is a bona fide nonprofit corporation duly organized under chapter 317A or under <br/>
<a id="pl.51.10"></a><var>51.10</var>the similar laws of another state;<br/>
<a id="pl.51.11"></a><var>51.11</var>    (13) enter into a contract with a debtor unless a thorough written budget analysis <br/>
<a id="pl.51.12"></a><var>51.12</var>indicates that the debtor can reasonably meet the requirements of the financial adjustment <br/>
<a id="pl.51.13"></a><var>51.13</var>plan and will be benefited by the plan;<br/>
<a id="pl.51.14"></a><var>51.14</var>    (14) in any way charge or purport to charge or provide any debtor credit insurance in <br/>
<a id="pl.51.15"></a><var>51.15</var>conjunction with any contract or agreement involved in the debt management services <br/>
<a id="pl.51.16"></a><var>51.16</var>plan;<br/>
<a id="pl.51.17"></a><var>51.17</var>    (15) operate or employ a person who is an employee or owner of a collection agency <br/>
<a id="pl.51.18"></a><var>51.18</var>or process-serving business; or<br/>
<a id="pl.51.19"></a><var>51.19</var>    (16) solicit, demand, collect, require, or attempt to require payment of a sum that <br/>
<a id="pl.51.20"></a><var>51.20</var>the registrant states, discloses, or advertises to be a voluntary contribution to a debt <br/>
<a id="pl.51.21"></a><var>51.21</var>management services provider or designee from the debtor.<br/>
<br/>
<a id="bill.0.70.0"></a><a id="pl.51.22"></a><var>51.22</var>    Sec. 70. Laws 2009, chapter 37, article 4, section 19, subdivision 13, is amended to <br/>
<a id="pl.51.23"></a><var>51.23</var>read:<br/>
<a id="pl.51.24"></a><var>51.24</var>    Subd. 13. <b>Debt settlement services provider.</b> "Debt settlement services provider" <br/>
<a id="pl.51.25"></a><var>51.25</var>means any person offering or providing debt settlement services to a debtor domiciled <br/>
<a id="pl.51.26"></a><var>51.26</var>in this state, regardless of whether or not a fee is charged for the services and regardless <br/>
<a id="pl.51.27"></a><var>51.27</var>of whether the person maintains a physical presence in the state. The term includes any <br/>
<a id="pl.51.28"></a><var>51.28</var>person to whom debt settlement duties services are delegated. The term shall not include <br/>
<a id="pl.51.29"></a><var>51.29</var>persons listed in section 
         <statute_ref>332A.02, subdivision 8</statute_ref>, clauses (1) to (10), or a debt management <br/>
<a id="pl.51.30"></a><var>51.30</var>services provider.<br/>
<br/>
<a id="bill.0.71.0"></a><a id="pl.51.31"></a><var>51.31</var>    Sec. 71. Laws 2009, chapter 37, article 4, section 20, is amended to read:<br/>
<a id="pl.51.32"></a><var>51.32</var>    Sec. 20. <b>332B.03 REQUIREMENT OF REGISTRATION.</b><br/>
<a id="pl.51.33"></a><var>51.33</var>On or after August 1, 2009, it is unlawful for any person, whether or not located <br/>
<a id="pl.51.34"></a><var>51.34</var>in this state, to operate as a debt settlement services provider or provide debt settlement <br/>
<a id="pl.52.1"></a><var>52.1</var>services including, but not limited to, offering, advertising, or executing or causing to be <br/>
<a id="pl.52.2"></a><var>52.2</var>executed any debt settlement services or debt settlement services agreement, except as <br/>
<a id="pl.52.3"></a><var>52.3</var>authorized by law, without first becoming registered as provided in this chapter. Debt <br/>
<a id="pl.52.4"></a><var>52.4</var>settlement services providers may continue to provide debt settlement services without <br/>
<a id="pl.52.5"></a><var>52.5</var>complying with this chapter to those debtors who entered into a contract to participate <br/>
<a id="pl.52.6"></a><var>52.6</var>in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt <br/>
<a id="pl.52.7"></a><var>52.7</var>settlement services agreement with a debt debtor on or after August 1, 2009, without <br/>
<a id="pl.52.8"></a><var>52.8</var>complying with this chapter.<br/>
<br/>
<a id="bill.0.72.0"></a><a id="pl.52.9"></a><var>52.9</var>    Sec. 72. Laws 2009, chapter 37, article 4, section 23, is amended to read:<br/>
<a id="pl.52.10"></a><var>52.10</var>    Sec. 23. <b>332B.06 WRITTEN DEBT SETTLEMENT SERVICES </b><br/>
<a id="pl.52.11"></a><var>52.11</var><b>AGREEMENT; DISCLOSURES; TRUST ACCOUNT.</b><br/>
<a id="pl.52.12"></a><var>52.12</var>    Subdivision 1. <b>Written agreement required.</b> (a) A debt settlement services <br/>
<a id="pl.52.13"></a><var>52.13</var>provider may not perform, or impose any charges or receive any payment for, any debt <br/>
<a id="pl.52.14"></a><var>52.14</var>settlement services until the provider and the debtor have executed a debt settlement <br/>
<a id="pl.52.15"></a><var>52.15</var>services agreement that contains all terms of the agreement between the debt settlement <br/>
<a id="pl.52.16"></a><var>52.16</var>services provider and the debtor,  and the provider complies with all the applicable <br/>
<a id="pl.52.17"></a><var>52.17</var>requirements of this chapter.<br/>
<a id="pl.52.18"></a><var>52.18</var>(b) A debt settlement services agreement must:<br/>
<a id="pl.52.19"></a><var>52.19</var>(1) be in writing, dated, and signed by the debt settlement services provider and <br/>
<a id="pl.52.20"></a><var>52.20</var>the debtor;<br/>
<a id="pl.52.21"></a><var>52.21</var>(2) conspicuously indicate whether or not the debt settlement services provider is <br/>
<a id="pl.52.22"></a><var>52.22</var>registered with the Minnesota Department of Commerce and include any registration <br/>
<a id="pl.52.23"></a><var>52.23</var>number; and<br/>
<a id="pl.52.24"></a><var>52.24</var>(3) be written in the debtor's primary language if the debt settlement services <br/>
<a id="pl.52.25"></a><var>52.25</var>provider advertises in that language.<br/>
<a id="pl.52.26"></a><var>52.26</var>(c) The registrant must furnish the debtor with a copy of the signed contract upon <br/>
<a id="pl.52.27"></a><var>52.27</var>execution.<br/>
<a id="pl.52.28"></a><var>52.28</var>    Subd. 2. <b>Actions prior to executing a written agreement.</b> No person may provide <br/>
<a id="pl.52.29"></a><var>52.29</var>debt settlement services for a debtor or execute a debt settlement services agreement <br/>
<a id="pl.52.30"></a><var>52.30</var>unless the person first has: <br/>
<a id="pl.52.31"></a><var>52.31</var>(1) informed the debtor, in writing, that debt settlement is not appropriate for all <br/>
<a id="pl.52.32"></a><var>52.32</var>debtors and that there are other ways to deal with debt, including using credit counseling <br/>
<a id="pl.52.33"></a><var>52.33</var>or debt management services, or filing bankruptcy;<br/>
<a id="pl.52.34"></a><var>52.34</var>(2) prepared in writing and provided to the debtor, in a form the debtor may keep, <br/>
<a id="pl.52.35"></a><var>52.35</var>an individualized financial analysis of the debtor's financial circumstances, including <br/>
<a id="pl.53.1"></a><var>53.1</var>income and liabilities, and made a determination supported by the individualized financial <br/>
<a id="pl.53.2"></a><var>53.2</var>analysis that:<br/>
<a id="pl.53.3"></a><var>53.3</var>(i) the debt settlement plan proposed for addressing the debt is suitable for the <br/>
<a id="pl.53.4"></a><var>53.4</var>individual debtor;<br/>
<a id="pl.53.5"></a><var>53.5</var>(ii) the debtor can reasonably meet the requirements of the proposed debt settlement <br/>
<a id="pl.53.6"></a><var>53.6</var>services plan; and<br/>
<a id="pl.53.7"></a><var>53.7</var>(iii) based on the totality of the circumstances, there is a net tangible benefit to the <br/>
<a id="pl.53.8"></a><var>53.8</var>debtor of entering into the proposed debt settlement services plan; and<br/>
<a id="pl.53.9"></a><var>53.9</var>(3) provided, on a document separate from any other document, the total amount and <br/>
<a id="pl.53.10"></a><var>53.10</var>an itemization of fees, including any origination fees, monthly fees, and settlement fees <br/>
<a id="pl.53.11"></a><var>53.11</var>reasonably anticipated to be paid by the debtor over the term of the agreement.<br/>
<a id="pl.53.12"></a><var>53.12</var>    Subd. 3. <b>Determination concerning creditor participation.</b> (a) Before executing a <br/>
<a id="pl.53.13"></a><var>53.13</var>debt settlement services agreement or providing any services, a debt settlement services <br/>
<a id="pl.53.14"></a><var>53.14</var>provider must make a determination, supported by sufficient bases, which creditors listed <br/>
<a id="pl.53.15"></a><var>53.15</var>by the debtor are reasonably likely, and which are not reasonably likely, to participate in <br/>
<a id="pl.53.16"></a><var>53.16</var>the debt settlement services plan set forth in the debt settlement services agreement.<br/>
<a id="pl.53.17"></a><var>53.17</var>(b) A debt settlement services provider has a defense against a claim that no <br/>
<a id="pl.53.18"></a><var>53.18</var>sufficient basis existed to make a determination that a creditor was likely to participate if <br/>
<a id="pl.53.19"></a><var>53.19</var>the debt settlement services provider can produce:<br/>
<a id="pl.53.20"></a><var>53.20</var>(1) written confirmation from the creditor that, at the time the determination was <br/>
<a id="pl.53.21"></a><var>53.21</var>made, the creditor and the debt settlement services provider were engaged in negotiations <br/>
<a id="pl.53.22"></a><var>53.22</var>to settle a debt for another debtor; or<br/>
<a id="pl.53.23"></a><var>53.23</var>(2) evidence that the provider and the creditor had entered into a settlement of a debt <br/>
<a id="pl.53.24"></a><var>53.24</var>for another debtor within the six months prior to the date of the determination.<br/>
<a id="pl.53.25"></a><var>53.25</var>(c) The debt settlement services provider must notify the debtor as soon as <br/>
<a id="pl.53.26"></a><var>53.26</var>practicable after the provider has made a determination of the likelihood of participation <br/>
<a id="pl.53.27"></a><var>53.27</var>or nonparticipation of all the creditors listed for inclusion in the debt settlement services <br/>
<a id="pl.53.28"></a><var>53.28</var>agreement or debt settlement services plan. If not all creditors listed in the debt settlement <br/>
<a id="pl.53.29"></a><var>53.29</var>services agreement are reasonably likely to participate in the debt settlement services plan, <br/>
<a id="pl.53.30"></a><var>53.30</var>the debt settlement services provider must obtain the written authorization from the debtor <br/>
<a id="pl.53.31"></a><var>53.31</var>to proceed with the debt settlement services agreement without the likely participation of <br/>
<a id="pl.53.32"></a><var>53.32</var>all listed creditors.<br/>
<a id="pl.53.33"></a><var>53.33</var>    Subd. 4. <b>Disclosures.</b> (a) A person offering to provide or providing debt settlement <br/>
<a id="pl.53.34"></a><var>53.34</var>services must disclose both orally and in writing whether or not the person is registered <br/>
<a id="pl.53.35"></a><var>53.35</var>with the Minnesota Department of Commerce and any registration number.<br/>
<a id="pl.54.1"></a><var>54.1</var>(b) No person may provide debt settlement services unless the person first has <br/>
<a id="pl.54.2"></a><var>54.2</var>provided, both orally and in writing, on a single sheet of paper, separate from any other <br/>
<a id="pl.54.3"></a><var>54.3</var>document or writing, the following verbatim notice:<br/>
<a id="pl.54.4"></a><var>54.4</var>CAUTION<br/>
<a id="pl.54.5"></a><var>54.5</var>We CANNOT GUARANTEE that you will successfully reduce or eliminate your <br/>
<a id="pl.54.6"></a><var>54.6</var>debt.<br/>
<a id="pl.54.7"></a><var>54.7</var>If you stop paying your creditors, there is a strong likelihood some or all of the <br/>
<a id="pl.54.8"></a><var>54.8</var>following may happen:<br/>
<a id="pl.54.9"></a><var>54.9</var>• YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.<br/>
<a id="pl.54.10"></a><var>54.10</var>• YOU MAY STILL BE CONTACTED BY CREDITORS.<br/>
<a id="pl.54.11"></a><var>54.11</var>• YOU MAY STILL BE SUED BY CREDITORS for the money you owe.<br/>
<a id="pl.54.12"></a><var>54.12</var>• FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT <br/>
<a id="pl.54.13"></a><var>54.13</var>UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT.<br/>
<a id="pl.54.14"></a><var>54.14</var>Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on <br/>
<a id="pl.54.15"></a><var>54.15</var>the amount forgiven.<br/>
<a id="pl.54.16"></a><var>54.16</var>Your credit rating may be adversely affected.<br/>
<a id="pl.54.17"></a><var>54.17</var>(c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the <br/>
<a id="pl.54.18"></a><var>54.18</var>remaining text must be in 14-point type, with a double space between each statement.<br/>
<a id="pl.54.19"></a><var>54.19</var>(d) The disclosures and notices required under this subdivision must be provided <br/>
<a id="pl.54.20"></a><var>54.20</var>in the debtor's primary language if the debt settlement services provider advertises in <br/>
<a id="pl.54.21"></a><var>54.21</var>that language.<br/>
<a id="pl.54.22"></a><var>54.22</var>    Subd. 5. <b>Required terms.</b> (a) Each debt settlement services agreement must contain <br/>
<a id="pl.54.23"></a><var>54.23</var>on the front page of the agreement, segregated by bold lines from all other information <br/>
<a id="pl.54.24"></a><var>54.24</var>on the page and disclosed prominently and clearly in bold print, the total amount and an <br/>
<a id="pl.54.25"></a><var>54.25</var>itemization of fees, including any origination fees, monthly fees, and settlement fees <br/>
<a id="pl.54.26"></a><var>54.26</var>reasonably anticipated to be paid by the debtor over the term of the agreement.<br/>
<a id="pl.54.27"></a><var>54.27</var>(b) Each debt settlement services agreement must also contain the following:<br/>
<a id="pl.54.28"></a><var>54.28</var>(1) a prominent statement describing the terms upon which the debtor may cancel <br/>
<a id="pl.54.29"></a><var>54.29</var>the contract as set forth in section 
         <statute_ref>332B.07</statute_ref>;<br/>
<a id="pl.54.30"></a><var>54.30</var>(2) a detailed description of all services to be performed by the debt settlement <br/>
<a id="pl.54.31"></a><var>54.31</var>services provider for the debtor;<br/>
<a id="pl.54.32"></a><var>54.32</var>(3) the debt settlement services provider's refund policy;<br/>
<a id="pl.54.33"></a><var>54.33</var>(4) the debt settlement services provider's principal business address, which must <br/>
<a id="pl.54.34"></a><var>54.34</var>not be a post office box, and the name and address of its agent in this state authorized to <br/>
<a id="pl.54.35"></a><var>54.35</var>receive service of process; and<br/>
<a id="pl.55.1"></a><var>55.1</var>(5) the name of each creditor the debtor has listed and the aggregate debt owed to <br/>
<a id="pl.55.2"></a><var>55.2</var>each creditor that will be the subject of settlement.<br/>
<a id="pl.55.3"></a><var>55.3</var>    Subd. 6. <b>Prohibited terms.</b> A debt settlement services agreement may not contain <br/>
<a id="pl.55.4"></a><var>55.4</var>any of the terms prohibited under section 
         <statute_ref>332A.10, subdivision 4</statute_ref>.<br/>
<a id="pl.55.5"></a><var>55.5</var>    Subd. 7. <b>New debt settlement services agreements; modifications of existing </b><br/>
<a id="pl.55.6"></a><var>55.6</var><b>agreements.</b> (a) Separate and additional debt settlement services agreements that comply <br/>
<a id="pl.55.7"></a><var>55.7</var>with this chapter may be entered into by the debt settlement services provider and the <br/>
<a id="pl.55.8"></a><var>55.8</var>debtor, provided that no additional origination fee may be charged by the debt settlement <br/>
<a id="pl.55.9"></a><var>55.9</var>services provider.<br/>
<a id="pl.55.10"></a><var>55.10</var>(b) Any modification of an existing debt settlement services agreement, including <br/>
<a id="pl.55.11"></a><var>55.11</var>any increase in the number or amount of debts included in the debt settlement services <br/>
<a id="pl.55.12"></a><var>55.12</var>agreement, must be in writing and signed by both parties. No fee may be charged to <br/>
<a id="pl.55.13"></a><var>55.13</var>modify an existing agreement.<br/>
<a id="pl.55.14"></a><var>55.14</var>    Subd. 8.  <b>Funds held in trust.</b> Debtor funds may be held in trust for the purpose <br/>
<a id="pl.55.15"></a><var>55.15</var>of writing exchange checks for no longer than 42 days. If the registrant holds debtor <br/>
<a id="pl.55.16"></a><var>55.16</var>funds, the registrant must maintain a separate trust account, except that the registrant may <br/>
<a id="pl.55.17"></a><var>55.17</var>commingle debtor funds with the registrant's own funds, in the form of an imprest fund, <br/>
<a id="pl.55.18"></a><var>55.18</var>to the extent necessary to ensure maintenance of a minimum balance, if the financial <br/>
<a id="pl.55.19"></a><var>55.19</var>institution at which the trust account is held requires a minimum balance to avoid the <br/>
<a id="pl.55.20"></a><var>55.20</var>assessment of fees or penalties for failure to maintain a minimum balance.<br/>
<br/>
<a id="bill.0.73.0"></a><a id="pl.55.21"></a><var>55.21</var>    Sec. 73. Laws 2009, chapter 37, article 4, section 26, subdivision 2, is amended to read:<br/>
<a id="pl.55.22"></a><var>55.22</var>    Subd. 2. <b>Fees as a percentage of debt.</b> (a) The total amount of the fees claimed, <br/>
<a id="pl.55.23"></a><var>55.23</var>demanded, charged, collected, or received under this subdivision shall be calculated as <br/>
<a id="pl.55.24"></a><var>55.24</var>15 percent of the aggregate debt. A debt settlement services provider that calculates <br/>
<a id="pl.55.25"></a><var>55.25</var>fees as a percentage of debt may:<br/>
<a id="pl.55.26"></a><var>55.26</var>(1) charge an origination fee, which may be designated by the debt settlement <br/>
<a id="pl.55.27"></a><var>55.27</var>services provider as nonrefundable, of:<br/>
<a id="pl.55.28"></a><var>55.28</var>(i) $200 on aggregate debt of less than $20,000; or<br/>
<a id="pl.55.29"></a><var>55.29</var>(ii) $400 on aggregate debt of $20,000 or more;<br/>
<a id="pl.55.30"></a><var>55.30</var>(2) charge a monthly fee of:<br/>
<a id="pl.55.31"></a><var>55.31</var>(i) no greater than $50 per month on aggregate debt of less than $40,000; and <br/>
<a id="pl.55.32"></a><var>55.32</var>(ii) no greater than $60 per month on aggregate debt of $40,000 or more; and<br/>
<a id="pl.55.33"></a><var>55.33</var>(3) charge a settlement fee for the remainder of the allowable fees, which may be <br/>
<a id="pl.55.34"></a><var>55.34</var>demanded and collected no earlier than upon delivery to the debt settlement services <br/>
<a id="pl.55.35"></a><var>55.35</var>provider by a creditor of a bona fide written settlement offer consistent with the terms of <br/>
<a id="pl.56.1"></a><var>56.1</var>the debt settlement services agreement. A settlement fee may be assessed for each debt <br/>
<a id="pl.56.2"></a><var>56.2</var>settled, but the sum total of the origination fee, the monthly fee, and the settlement fee <br/>
<a id="pl.56.3"></a><var>56.3</var>may not exceed 15 percent of the aggregate debt.<br/>
<a id="pl.56.4"></a><var>56.4</var>(b) When a settlement offer is obtained by a debt settlement services provider from a <br/>
<a id="pl.56.5"></a><var>56.5</var>creditor, the collection of any monthly fees shall cease beginning the month following <br/>
<a id="pl.56.6"></a><var>56.6</var>the month in which the settlement offer was obtained by the debt settlement services <br/>
<a id="pl.56.7"></a><var>56.7</var>provider The collection of monthly fees shall cease under this subdivision when the total <br/>
<a id="pl.56.8"></a><var>56.8</var>monthly fees and the origination fee equals 40 percent of the total fees allowable under <br/>
<a id="pl.56.9"></a><var>56.9</var>this subdivision.<br/>
<a id="pl.56.10"></a><var>56.10</var>(c) In no event may more than 40 percent of the total amount of fees allowable be <br/>
<a id="pl.56.11"></a><var>56.11</var>claimed, demanded, charged, collected, or received by a debt settlement services provider <br/>
<a id="pl.56.12"></a><var>56.12</var>any earlier than upon delivery to the debt settlement services provider by a creditor of <br/>
<a id="pl.56.13"></a><var>56.13</var>a bona fide written settlement offer consistent with the terms of the debt settlement <br/>
<a id="pl.56.14"></a><var>56.14</var>services agreement.<br/>
<br/>
<a id="bill.0.74.0"></a><a id="pl.56.15"></a><var>56.15</var>    Sec. 74. <b>REPEALER.</b><br/>
<a id="pl.56.16"></a><var>56.16</var>Minnesota Statutes 2008, sections 60A.201, subdivision 4; 70A.07; and 79.56, <br/>
<a id="pl.56.17"></a><var>56.17</var>subdivision 4, are repealed.<br/>
<br/>
<a id="bill.0.75.0"></a><a id="pl.56.18"></a><var>56.18</var>    Sec. 75. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.56.19"></a><var>56.19</var>(a) Section 27 is effective for all policies with policy years beginning on or after <br/>
<a id="pl.56.20"></a><var>56.20</var>May 21, 2009.<br/>
<a id="pl.56.21"></a><var>56.21</var>(b) Sections 28 to 32 apply to plans and certificates with an effective date for <br/>
<a id="pl.56.22"></a><var>56.22</var>coverage on or after June 1, 2010.<br/>
<a id="pl.56.23"></a><var>56.23</var>(c) Sections 46 to 49 are effective the day following final enactment.<br/>