1.1 	A bill for an act
1.2 	relating to insurance; regulating sales of insurance coverage to school districts;
1.3 	amending Minnesota Statutes 2012, section 60K.46, by adding a subdivision.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2012, section 60K.46, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 9.Sales of insurance to school districts. An insurance broker who provides 
1.8 	insurance coverage to school districts must not:
1.9 	(1) receive and retain an overriding commission in connection with the sale. For 
1.10 	purposes of this subdivision, an overriding commission is a portion of the proceeds of a 
1.11 	sale of insurance that is earned by an agent of the broker, rather than by the broker, but 
1.12 	which the broker retains as income for the broker;
1.13 	(2) fail to disclose all compensation to the broker or agents from any potential 
1.14 	sale of insurance to the school district; or
1.15 	(3) fail to initiate and maintain a fiduciary responsibility to the school district.

1.16 	EFFECTIVE DATE. This section is effective July 1, 2014.