Office of the Revisor of Statutes
HF 2403
2nd Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/30/2025 08:07 a.m.
2.2 2.3
2.4 2.5 2.6 2.7 2.8 2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12
6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5
8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 9.1 9.2 9.3 9.4 9.5 9.6
9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31
10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8
11.9 11.10 11.11 11.12 11.13
11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9
12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4 13.5 13.6
13.7 13.8
13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14
14.15 14.16
14.17 14.18 14.19 14.20 14.21 14.22 14.23
14.24 14.25
14.26 14.27 14.28 14.29
14.30
15.1 15.2
15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21
15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20
16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31
17.1 17.2 17.3 17.4 17.5 17.6 17.7
17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17
17.18 17.19 17.20 17.21 17.22 17.23 17.24
17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15
18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 19.1 19.2 19.3 19.4 19.5
19.6 19.7 19.8 19.9 19.10 19.11
19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30
20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15
20.16 20.17 20.18 20.19 20.20 20.21
20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30
21.1 21.2
21.3 21.4
21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3 29.4 29.5
29.6
29.7 29.8
29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16
29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 30.1 30.2 30.3 30.4 30.5 30.6 30.7
30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31
30.32 30.33 30.34 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29
31.30 31.31 31.32 31.33 31.34 31.35 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12
37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21
37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 41.1 41.2 41.3
41.4 41.5 41.6 41.7
41.8 41.9
41.10 41.11
41.12 41.13 41.14 41.15 41.16 41.17 41.18
41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 42.1 42.2
42.3 42.4 42.5 42.6 42.7 42.8
42.9 42.10 42.11
42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19
42.20 42.21 42.22 42.23 42.24 42.25
42.26 42.27 42.28 42.29 42.30 43.1 43.2
43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 44.1 44.2
44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 45.1 45.2
45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25
45.26 45.27 45.28 45.29 45.30 45.31 45.32 46.1 46.2
46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19
47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16
48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11
51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 55.1 55.2 55.3 55.4
55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30
58.31 58.32 58.33 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24
59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12
61.13 61.14 61.15 61.16 61.17 61.18
61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14
62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32
63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8
63.9 63.10
63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16
64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24
64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32
65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9
65.10 65.11 65.12 65.13 65.14 65.15 65.16
65.17 65.18 65.19 65.20 65.21 65.22
65.23 65.24 65.25 65.26
65.27 65.28 65.29 65.30 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11
66.12 66.13 66.14 66.15
66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 68.1 68.2 68.3 68.4 68.5 68.6
68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31
69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13
75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26
77.27 77.28 77.29 77.30 77.31 77.32 78.1 78.2 78.3 78.4 78.5 78.6 78.7
78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21
78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 79.1 79.2 79.3
79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27
79.28 79.29 79.30 79.31 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25
80.26 80.27 80.28 80.29 80.30 80.31 80.32 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 82.1 82.2 82.3
82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 83.1 83.2 83.3 83.4
83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8
84.9 84.10
84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29
85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10
86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31
87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13
87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8
88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12
91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21
93.22
93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23
94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23
95.24
95.25 95.26 95.27 95.28 95.29 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12
96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25
96.26 96.27 96.28 96.29 96.30
97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16
97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26
97.27 97.28 97.29 97.30 97.31
98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27
98.28 98.29 98.30 98.31 98.32 99.1 99.2
99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19
99.20 99.21 99.22 99.23 99.24 99.25 99.26
99.27 99.28 99.29
A bill for an act
relating to commerce; modifying and adding various provisions governing financial
institutions, insurance, limited long-term care insurance; Medicare supplement
insurance, and insurance holding company systems; modifying the Minnesota
Business Corporations Act; modifying various provisions implemented or enforced
by the Department of Commerce; authorizing administrative rulemaking; making
technical and conforming changes; amending Minnesota Statutes 2024, sections
41A.09, subdivision 2a; 45.027, subdivisions 1, 2, by adding a subdivision; 45.24;
46A.04; 47.20, subdivisions 2, 4a, 8; 47.77; 53B.61; 55.07, by adding a subdivision;
58B.02, subdivision 8a; 60D.09, by adding a subdivision; 60D.15, subdivisions
4, 7, by adding subdivisions; 60D.16, subdivision 2; 60D.17, subdivision 1; 60D.18,
subdivision 3; 60D.19, subdivision 4, by adding subdivisions; 60D.20, subdivision
1; 60D.217; 60D.22, subdivisions 1, 3, 6, by adding a subdivision; 60D.24,
subdivision 2; 60D.25; 62A.31, subdivisions 1, 1f, 1h, 1p, 1u, 4; 62A.44,
subdivision 2; 62A.65, subdivision 2, by adding a subdivision; 62D.12, subdivisions
2, 2a; 62D.121, subdivision 1; 62Q.73, subdivision 4; 65B.02, subdivision 7;
65B.05; 65B.06, subdivisions 1, 2, 3; 65B.10, subdivision 2; 72A.20, by adding
a subdivision; 80A.66; 80E.12; 82B.19, subdivision 5; 168.27, by adding a
subdivision; 239.761, subdivisions 3, 4, 5, 6; 239.791, subdivision 11; 296A.01,
subdivisions 20, 23, 24; 302A.011, subdivision 41, by adding subdivisions;
302A.111, subdivision 2; 302A.161, by adding a subdivision; 302A.181, by adding
a subdivision; 302A.201, subdivision 1; 302A.237, by adding a subdivision;
302A.361; 302A.461, subdivision 4; 302A.471, subdivisions 1, 3; 302A.611, by
adding a subdivision; 334.01, subdivision 2; 580.07, subdivisions 1, 2; 581.02;
proposing coding for new law in Minnesota Statutes, chapters 60D; 62A; 302A;
325F; repealing Minnesota Statutes 2024, sections 62A.3099, subdivision 18b;
62A.31, subdivision 1w; 65B.10, subdivision 3; 325F.02; 325F.03; 325F.04;
325F.05; 325F.06; 325F.07; Laws 2023, chapter 57, article 2, section 66.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
FINANCIAL INSTITUTIONS
Section 1.
Minnesota Statutes 2024, section 46A.04, is amended to read:
46A.04 EXCEPTIONS AND EXEMPTIONS.
(a) The requirements under section 46A.03, subdivisions 3new text begin , paragraph (b)new text end ; 5, paragraph
deleted text begin (a)deleted text end new text begin (b)new text end ; 9; and 10, do not apply to financial institutions that maintain customer information
concerning fewer than 5,000 consumers.
(b) This chapter does not apply to credit unions or federally insured depository
institutions.
Sec. 2.
Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For the purposes of this section the terms defined in this subdivision
have the meanings given them:
(1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
whether or not retained by the mortgagee or lender:
(a) Any insurance premiums including but not limited to premiums for title insurance,
fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
(b) Abstracting, title examination and search, and examination of public records.
(c) The preparation and recording of any or all documents required by law or custom
for closing a conventional or cooperative apartment loan.
(d) Appraisal and survey of real property securing a conventional loan or real property
owned by a cooperative apartment corporation of which a share or shares of stock or a
membership certificate or certificates are to secure a cooperative apartment loan.
(e) A single service charge, which includes any consideration, not otherwise specified
herein as an "actual closing cost" paid by the borrower and received and retained by the
lender for or related to the acquisition, making, refinancing or modification of a conventional
or cooperative apartment loan, and also includes any consideration received by the lender
for making a borrower's interest rate commitment or for making a borrower's loan
commitment, whether or not an actual loan follows the commitment. The term service charge
does not include forward commitment fees. The service charge shall not exceed one percent
of the original bona fide principal amount of the conventional or cooperative apartment
loan, except that in the case of a construction loan, the service charge shall not exceed two
percent of the original bona fide principal amount of the loan. That portion of the service
charge imposed because the loan is a construction loan shall be itemized and a copy of the
itemization furnished the borrower. A lender shall not collect from a borrower the additional
one percent service charge permitted for a construction loan if it does not perform the service
for which the charge is imposed or if third parties perform and charge the borrower for the
service for which the lender has imposed the charge.new text begin A loan that meets the Federal Qualified
Mortgage standards in Code of Federal Regulations, title 12, section 1026.43(e)(3), is exempt
from the service charge limitations of this section.
new text end
(f) Charges and fees necessary for or related to the transfer of real or personal property
securing a conventional or cooperative apartment loan or the closing of a conventional or
cooperative apartment loan paid by the borrower and received by any party other than the
lender.
(2) "Contract for deed" means an executory contract for the conveyance of real estate,
the original principal amount of which is less than $300,000. A commitment for a contract
for deed shall include an executed purchase agreement or earnest money contract wherein
the seller agrees to finance any part or all of the purchase price by a contract for deed.
(3) "Conventional loan" means a loan or advance of credit, other than a loan or advance
of credit made by a credit union or made pursuant to section 334.011, to a noncorporate
borrower in an original principal amount of less than or equal to the conforming loan limit
established by the Federal Housing Finance Agency under the Housing and Recovery Act
of 2018, Public Law 110-289, secured by a mortgage upon real property containing one or
more residential units or upon which at the time the loan is made it is intended that one or
more residential units are to be constructed, and which is not insured or guaranteed by the
secretary of housing and urban development, by the administrator of veterans affairs, or by
the administrator of the Farmers Home Administration, and which is not made pursuant to
the authority granted in subdivision 1, clause (3) or (4). The term mortgage does not include
contracts for deed or installment land contracts.
(4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
or advance of credit made by a credit union or made pursuant to section 334.011, to a
noncorporate borrower in an original principal amount of less than $100,000, secured by a
security interest on a share or shares of stock or a membership certificate or certificates
issued to a stockholder or member by a cooperative apartment corporation, which may be
accompanied by an assignment by way of security of the borrower's interest in the proprietary
lease or occupancy agreement in property issued by the cooperative apartment corporation
and which is not insured or guaranteed by the secretary of housing and urban development,
by the administrator of veterans affairs, or by the administrator of the Farmers Home
Administration.
(5) "Cooperative apartment corporation" means a corporation or cooperative organized
under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
reason of their ownership of stock or membership certificates in the corporation or
association, to occupy one or more residential units in a building owned or leased by the
corporation or association.
(6) "Forward commitment fee" means a fee or other consideration paid to a lender for
the purpose of securing a binding forward commitment by or through the lender to make
conventional loans to two or more credit worthy purchasers, including future purchasers,
of residential units, or a fee or other consideration paid to a lender for the purpose of securing
a binding forward commitment by or through the lender to make conventional loans to two
or more credit worthy purchasers, including future purchasers, of units to be created out of
existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
for the purpose of securing a binding forward commitment by or through the lender to make
cooperative apartment loans to two or more credit worthy purchasers, including future
purchasers, of a share or shares of stock or a membership certificate or certificates in a
cooperative apartment corporation; provided, that the forward commitment rate of interest
does not exceed the maximum lawful rate of interest effective as of the date the forward
commitment is issued by the lender.
(7) "Borrower's interest rate commitment" means a binding commitment made by a
lender to a borrower wherein the lender agrees that, if a conventional or cooperative
apartment loan is made following issuance of and pursuant to the commitment, the
conventional or cooperative apartment loan shall be made at a rate of interest not in excess
of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
to in the commitment is not in excess of the maximum lawful rate of interest effective as
of the date the commitment is issued by the lender to the borrower.
(8) "Borrower's loan commitment" means a binding commitment made by a lender to a
borrower wherein the lender agrees to make a conventional or cooperative apartment loan
pursuant to the provisions, including the interest rate, of the commitment, provided that the
commitment rate of interest does not exceed the maximum lawful rate of interest effective
as of the date the commitment is issued and the commitment when issued and agreed to
shall constitute a legally binding obligation on the part of the mortgagee or lender to make
a conventional or cooperative apartment loan within a specified time period in the future at
a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
the commitment is issued by the lender to the borrower; provided that a lender who issues
a borrower's loan commitment pursuant to the provisions of a forward commitment is
authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
maximum lawful rate of interest effective as of the date the forward commitment is issued
by the lender.
(9) "Finance charge" means the total cost of a conventional or cooperative apartment
loan including extensions or grant of credit regardless of the characterization of the same
and includes interest, finders fees, and other charges levied by a lender directly or indirectly
against the person obtaining the conventional or cooperative apartment loan or against a
seller of real property securing a conventional loan or a seller of a share or shares of stock
or a membership certificate or certificates in a cooperative apartment corporation securing
a cooperative apartment loan, or any other party to the transaction except any actual closing
costs and any forward commitment fee. The finance charges plus the actual closing costs
and any forward commitment fee, charged by a lender shall include all charges made by a
lender other than the principal of the conventional or cooperative apartment loan. The finance
charge, with respect to wraparound mortgages, shall be computed based upon the face
amount of the wraparound mortgage note, which face amount shall consist of the aggregate
of those funds actually advanced by the wraparound lender and the total outstanding principal
balances of the prior note or notes which have been made a part of the wraparound mortgage
note.
(10) "Lender" means any person making a conventional or cooperative apartment loan,
or any person arranging financing for a conventional or cooperative apartment loan. The
term also includes the holder or assignee at any time of a conventional or cooperative
apartment loan.
(11) "Loan yield" means the annual rate of return obtained by a lender over the term of
a conventional or cooperative apartment loan and shall be computed as the annual percentage
rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
the rate of interest or loan yield shall be based upon the principal balance set forth in the
wraparound note and mortgage and shall not include any interest differential or yield
differential between the stated interest rate on the wraparound mortgage and the stated
interest rate on the one or more prior mortgages included in the stated loan amount on a
wraparound note and mortgage.
(12) "Person" means an individual, corporation, business trust, partnership or association
or any other legal entity.
(13) "Residential unit" means any structure used principally for residential purposes or
any portion thereof, and includes a unit in a common interest community, a nonowner
occupied residence, and any other type of residence regardless of whether the unit is used
as a principal residence, secondary residence, vacation residence, or residence of some other
denomination.
(14) "Vendor" means any person or persons who agree to sell real estate and finance
any part or all of the purchase price by a contract for deed. The term also includes the holder
or assignee at any time of the vendor's interest in a contract for deed.
Sec. 3.
Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:
Subd. 4a.
Maximum interest rate.
(a) No conventional or cooperative apartment loan
or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
lawful interest rate in an amount equal to the deleted text begin Federal National Mortgage Association posted
yields on 30-year mortgage commitments for delivery within 60 days on standard
conventional fixed-rate mortgages published in the Wall Street Journal for the last business
day of the second preceding monthdeleted text end new text begin average prime offer rate, as defined in Code of Federal
Regulations, title 12, section 1026.35(a)(2), that applies to a comparable transaction, as
most recently published by the United States Consumer Financial Protection Bureau on the
last date the discounted interest rate for the transaction is set before consummation,new text end plus
four percentage points.new text begin If the index is not available, a substitute index may be adopted by
a commissioner order.
new text end
(b) The maximum lawful interest rate applicable to a cooperative apartment loan or
contract for deed at the time the loan or contract is made is the maximum lawful interest
rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
the provisions of section 334.01, a cooperative apartment loan or contract for deed may
provide, at the time the loan or contract is made, for the application of specified different
consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
the maximum lawful interest rate applicable to the loan or contract at the time the loan or
contract is made.
(c) The maximum interest rate that can be charged on a conventional loan or a contract
for deed, with a duration of ten years or less, for the purchase of real estate described in
section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
under paragraph (a) or 15.75 percent per year, whichever is less. deleted text begin This paragraph is effective
August 1, 1992.
deleted text end
(d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
conventional or cooperative apartment loans made pursuant to a borrower's interest rate
commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
commitment for conventional or cooperative apartment loans made upon payment of a
forward commitment fee including a borrower's loan commitment issued pursuant to a
forward commitment, which commitment provides for consummation within some future
time following the issuance of the commitment may be consummated pursuant to the
provisions, including the interest rate, of the commitment notwithstanding the fact that the
maximum lawful rate of interest at the time the contract for deed or conventional or
cooperative apartment loan is actually executed or made is less than the commitment rate
of interest, provided the commitment rate of interest does not exceed the maximum lawful
interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
the secretary of housing and urban development, the administrator of veterans affairs, or
the administrator of the Farmers Home Administration, or (3) a contract for deed by making
a conventional or cooperative apartment loan is deemed to be a new conventional or
cooperative apartment loan for purposes of determining the maximum lawful rate of interest
under this subdivision. The renegotiation of a conventional or cooperative apartment loan
or a contract for deed is deemed to be a new loan or contract for deed for purposes of
paragraph (b) and for purposes of determining the maximum lawful rate of interest under
this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
is deemed to be issued on the date the commitment is hand delivered by the lender to, or
mailed to the borrower. A forward commitment is deemed to be issued on the date the
forward commitment is hand delivered by the lender to, or mailed to the person paying the
forward commitment fee to the lender, or to any one of them if there should be more than
one. A commitment for a contract for deed is deemed to be issued on the date the commitment
is initially executed by the contract for deed vendor or the vendor's authorized agent.
(e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
borrower's loan commitment, or made pursuant to a forward commitment for conventional
or cooperative apartment loans made upon payment of a forward commitment fee including
a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
not in excess of the rate of interest authorized by this subdivision at the time the commitment
was made continues to be enforceable in accordance with its terms until the indebtedness
is fully satisfied.
Sec. 4.
Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
Subd. 8.
Conventional loan provisions.
new text begin (a) new text end A lender making a conventional loan shall
comply with the following:
(1) the promissory note and mortgage evidencing a conventional loan shall be printed
in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
typewritten numerals, or shall be legibly handwrittendeleted text begin .deleted text end new text begin ;
new text end
(2) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender agrees to furnish the borrower with a conformed copy of the promissory note and
mortgage at the time they are executed or within a reasonable time after recordation of the
mortgagedeleted text begin .deleted text end new text begin ; and
new text end
(3) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender, if it intends to foreclose, agrees to give the borrower written notice of any default
under the terms or conditions of the promissory note or mortgage, by sending the notice by
deleted text begin certifieddeleted text end new text begin : (i) first-classnew text end mail to the address of the mortgaged property or deleted text begin such otherdeleted text end new text begin a differentnew text end
address deleted text begin asdeleted text end the borrower deleted text begin may have designateddeleted text end new text begin designatesnew text end in writing to the lendernew text begin ; or (ii)
email or other electronic communication, if agreed to by the lender and the borrower in
writingnew text end . The lender need not give the borrower the notice required by this deleted text begin paragraphdeleted text end new text begin clausenew text end
if the default consists of the borrower selling the mortgaged property without the required
consent of the lender.
new text begin (b) new text end The mortgage shall further provide that the noticenew text begin under paragraph (a), clause (3),new text end
shall contain the following provisions:
deleted text begin (a)deleted text end new text begin (1)new text end the nature of the default by the borrower;
deleted text begin (b)deleted text end new text begin (2)new text end the action required to cure the default;
deleted text begin (c)deleted text end new text begin (3)new text end a date, not less than 30 days from the date the notice is mailed by which the
default must be cured;
deleted text begin (d)deleted text end new text begin (4)new text end that failure to cure the default on or before the date specified in the notice may
result in acceleration of the sums secured by the mortgage and sale of the mortgaged
premises;
deleted text begin (e)deleted text end new text begin (5)new text end that the borrower has the right to reinstate the mortgage after acceleration; and
deleted text begin (f)deleted text end new text begin (6)new text end that the borrower has the right to bring a court action to assert the nonexistence
of a default or any other defense of the borrower to acceleration and sale.
Sec. 5.
Minnesota Statutes 2024, section 47.77, is amended to read:
47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
(a) No financial institution shall initiate a transfer of a deposit account to another deposit
account bearing different identification information without sending at least 30 days' prior
notice to at least one of the deposit account holders at the last known address on file with
the financial institution. If the new account is subject to different terms, the financial
institution must obtain the written consent of at least one of the deposit account holders
before the new terms become effective.
(b) No financial institution shall initiate a closure of a deposit account without first
sending at least one of the deposit account holders a notice of intent to close the deposit
account. The notice must be sent to the deposit account holder's last known address on file
with the financial institution at least 30 days before the financial institution closes the deposit
accountdeleted text begin ;deleted text end new text begin ,new text end except thatdeleted text begin ,deleted text end if the financial institution has reasonable suspicion to believe that
account is being used in connection with a check-related fraud or other crime deleted text begin or thatdeleted text end new text begin ,new text end funds
will not be available to pay items drawn on the account,new text begin or the deposit account holder has
engaged in harassment, as defined in section 609.749, subdivision 2, paragraph (c), toward
financial institution employees or customers,new text end the notice may be sent the same day as the
account is closed.
(c) As used in this section, the following terms have the meanings given them. "Deposit
account" means a contract of deposit of funds between a depositor and a financial institution,
and includes a checking account, savings account, certificate of deposit share account, and
other like arrangement. "Financial institution" means any organization authorized to do
business under state or federal laws relating to financial institutions, including, without
limitation, banks and trust companies, savings banks, savings associations, industrial loan
and thrift companies, and credit unions.
Sec. 6.
Minnesota Statutes 2024, section 53B.61, is amended to read:
53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.
(a) A licensee must maintain at all times permissible investments that have a market
value computed in accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of the licensee's outstanding money transmission
obligations.
(b) Except for permissible investments enumerated in section 53B.62, deleted text begin paragraph (a)deleted text end new text begin
subdivision 1, clause (1)new text end , the commissioner may by administrative rule or order, with respect
to any licensee, limit the extent to which a specific investment maintained by a licensee
within a class of permissible investments may be considered a permissible investment, if
the specific investment represents undue risk to customers not reflected in the market value
of investments.
(c) Permissible investments, even if commingled with other assets of the licensee, are
held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
transmission obligations in the event of insolvency; the filing of a petition by or against the
licensee under the United States Bankruptcy Code, United States Code, title 11, sections
101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
the filing of a petition by or against the licensee for receivership; the commencement of any
other judicial or administrative proceeding for the licensee's dissolution or reorganization;
or in the event of an action by a creditor against the licensee who is not a beneficiary of this
statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
are subject to attachment, levy of execution, or sequestration by order of any court, except
for a beneficiary of the statutory trust.
(d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
(4), the commissioner must notify the applicable regulator of each state in which the licensee
is licensed to engage in money transmission, if any, of the establishment of the trust or the
funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
any other permissible investments held in trust for the benefit of the purchasers and holders
of the licensee's outstanding money transmission obligations, are deemed held in trust for
the benefit of the purchasers and holders of the licensee's outstanding money transmission
obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
permissible investments are required to be held in Minnesota and other states, as defined
by a substantially similar statute in the other state. Any statutory trust established under this
section terminates upon extinguishment of all of the licensee's outstanding money
transmission obligations.
(e) The commissioner may by rule or by order allow other types of investments that the
commissioner determines are of sufficient liquidity and quality to be a permissible
investment. The commissioner is authorized to participate in efforts with other state regulators
to determine that other types of investments are of sufficient liquidity and quality to be a
permissible investment.
Sec. 7.
Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
read:
new text begin Subd. 3. new text end
new text begin Safe deposit lease; automatic renewal. new text end
new text begin
A safe deposit lease may renew
automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
at any time in writing or in any other manner described in the lease.
new text end
Sec. 8.
Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:
Subd. 8a.
Lender.
"Lender" means an entity engaged in the business of securing, making,
or extending student loans. Lender does not include, to the extent that state regulation is
preempted by federal law:
(1) a bank, savings banks, savings and loan association, or credit union;
(2) a wholly owned subsidiary of a bank or credit union;
(3) an operating subsidiary where each owner is wholly owned by the same bank or
credit union;
(4) the United States government, through Title IV of the Higher Education Act of 1965,
as amended, and administered by the United States Department of Education;
(5) an agency, instrumentality, or political subdivision of Minnesota;
(6) a regulated lender organized under chapter 56, except that a regulated lender must
file the annual report required for lenders under section 58B.03, subdivision deleted text begin 11deleted text end new text begin 10new text end ; or
(7) a person who is not in the business of making student loans and who makes no more
than three student loans, with the person's own funds, during any 12-month period.
Sec. 9.
Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:
Subd. 2.
Contracts of $100,000 or more.
Notwithstanding any law to the contrary,
except as stated in section 58.137, and with respect to deleted text begin contractsdeleted text end new text begin a conventional loan or
contractnew text end for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
sale, or advance made under a written contract, signed by the debtor, for the extension of
credit to the debtor in the amount of $100,000 or more, or any written extension and other
written modification of the written contract. The written contract, written extension, and
written modification are exempt from the other provisions of this chapter.
Sec. 10.
Minnesota Statutes 2024, section 580.07, subdivision 1, is amended to read:
Subdivision 1.
Postponement by mortgagee.
(a) The sale may be postponed, from time
to time, by the party conducting the foreclosure. The party requesting the postponement
must, at the party's expense:
(1) publish, only once, a notice of the postponement and the rescheduled date of the sale,
if known, as soon as practicable, in the newspaper in which the notice under section 580.03
was published; and
(2) send by first class mail to the occupant, postmarked within three business days of
the postponed sale, notice:
(i) of the postponement; and
(ii) if known, of the rescheduled date of the sale and the date on or before which the
mortgagor must vacate the property if the sheriff's sale is not further postponed, the mortgage
is not reinstated under section 580.30, the property is not redeemed under section 580.23,
or the redemption period is not reduced under section 582.032. The notice must state that
the time to vacate the property is 11:59 p.m. on the specified date.
(b) If the rescheduled date of the sale is not known at the time of the initial publication
and notice to the occupant of postponement, the foreclosing party must, at its expense if
and when a new date of sale is scheduled:
(1) publish, only once, notice of the rescheduled date of the sale, as soon as practicable,
in the newspaper in which the notice under section 580.03 and the notice of postponement
under paragraph (a) was published; and
(2) send by first class mail to the occupant, postmarked within ten days of the rescheduled
sale, notice:
(i) of the date of the rescheduled sale; and
(ii) of the date on or before which the mortgagor must vacate the property if the mortgage
is not reinstated under section 580.30 or the property redeemed under section 580.23. The
notice must state that the time to vacate the property is 11:59 p.m. on the specified date.
new text begin
(c) The right of a mortgagee to postpone a foreclosure sale under this section applies to
a foreclosure by action taken under chapter 581.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end
Sec. 11.
Minnesota Statutes 2024, section 580.07, subdivision 2, is amended to read:
Subd. 2.
Postponement by mortgagor or owner.
(a) If all or a part of the property to
be sold is classified as homestead under section 273.124 and contains one to four dwelling
units, the mortgagor or owner may, in the manner provided in this subdivision, postpone
the sale to the first date that is not a Saturday, Sunday, or legal holiday and is:
(1) five months after the originally scheduled date of sale if the original redemption
period was six months under section 580.23, subdivision 1; or
(2) 11 months after the originally scheduled date of sale if the original redemption period
was 12 months under section 580.23, subdivision 2. To postpone a foreclosure sale pursuant
to this subdivision, at any time after the first publication of the notice of mortgage foreclosure
sale under section 580.03 but at least 15 days prior to the scheduled sale date specified in
that notice, the mortgagor shall: (1) execute a sworn affidavit in the form set forth in
subdivision 3, (2) record the affidavit in the office of each county recorder and registrar of
titles where the mortgage was recorded, and (3) file with the sheriff conducting the sale and
deliver to the attorney foreclosing the mortgage a copy of the recorded affidavit, showing
the date and office in which the affidavit was recorded. Recording of the affidavit and
postponement of the foreclosure sale pursuant to this subdivision shall automatically reduce
the mortgagor's redemption period under section 580.23 to five weeks. The postponement
of a foreclosure sale pursuant to this subdivision does not require any change in the contents
of the notice of sale, service of the notice of sale if the occupant was served with the notice
of sale prior to postponement under this subdivision, or publication of the notice of sale if
publication was commenced prior to postponement under this subdivision, notwithstanding
the service and publication time periods specified in section 580.03, but the sheriff's
certificate of sale shall indicate the actual date of the foreclosure sale and the actual length
of the mortgagor's redemption period. No notice of postponement need be published. An
affidavit complying with subdivision 3 shall be prima facie evidence of the facts stated
therein, and shall be entitled to be recorded. The right to postpone a foreclosure sale pursuant
to this subdivision may be exercised only once, regardless whether the mortgagor reinstates
the mortgage prior to the postponed mortgage foreclosure sale.
(b) If the automatic stay under United States Code, title 11, section 362, applies to the
mortgage foreclosure after a mortgagor or owner requests postponement of the sheriff's sale
under this section, then when the automatic stay is no longer applicable, the mortgagor's or
owner's election to shorten the redemption period to five weeks under this section remains
applicable to the mortgage foreclosure.
(c) Except for the circumstances set forth in paragraph (b), this section does not reduce
the mortgagor's redemption period under section 580.23 for any subsequent foreclosure of
the mortgage.
new text begin
(d) The right of a mortgagor or owner to postpone a foreclosure sale under this section
applies to a foreclosure by action taken under chapter 581.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end
Sec. 12.
Minnesota Statutes 2024, section 581.02, is amended to read:
581.02 APPLICATION, CERTAIN SECTIONS.
new text begin (a) new text end The provisions of sections 580.08, 580.09, 580.12, 580.22, 580.25, and 580.27, so
far as they relate to the form of the certificate of sale, shall apply to and govern the
foreclosure of mortgages by action.
new text begin
(b) Section 580.07 applies to actions for the foreclosure of mortgages taken under this
chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end
Sec. 13. new text begin CERTAIN COMPLIANCE OPTIONAL.
new text end
new text begin
A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
with respect to conventional loan mortgage documents dated between August 1, 2024, and
July 31, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 31, 2024.
new text end
ARTICLE 2
INSURANCE
Section 1.
Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:
Subd. 2.
Guaranteed renewal.
No individual health plan may be offered, sold, issued,
or renewed to a Minnesota resident unless the health plan provides that the plan is guaranteed
renewable at a premium rate that does not take into account the claims experience or any
change in the health status of any covered person that occurred after the initial issuance of
the health plan to the person. The premium rate upon renewal must also otherwise comply
with this section. A health carrier deleted text begin must not refusedeleted text end new text begin is prohibited from refusing new text end to renew deleted text begin andeleted text end new text begin
a Minnesota resident'snew text end individual health plandeleted text begin , except for nonpayment of premiums, fraud,
or misrepresentation.deleted text end new text begin unless:
new text end
new text begin
(1) the enrollee has failed to pay premiums in accordance with the health plan's terms,
including any timeliness requirements;
new text end
new text begin
(2) the enrollee has performed an act or practice that constitutes fraud or made an
intentional misrepresentation of material fact under the health plan's terms;
new text end
new text begin
(3) the enrollee no longer lives in the area where the issuer is authorized to operate;
new text end
new text begin
(4) a health carrier discontinues an individual health plan as provided under subdivision
2a; or
new text end
new text begin
(5) a health carrier discontinues issuing new individual health plans and refuses to renew
all of the health carrier's existing individual health plans issued in Minnesota as provided
under subdivision 8.
new text end
Sec. 2.
Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Discontinuing individual health plan. new text end
new text begin
(a) In order to discontinue a particular
type of individual health plan in Minnesota for purposes of subdivision 2, clause (4), a health
carrier must:
new text end
new text begin
(1) provide written notice to the commissioner that approves the individual health plan's
policy forms and filings, in the form and manner approved by the commissioner, regarding
the health carrier's intent to discontinue a particular type of individual health plan in
Minnesota. The notice must be provided no later than May 1 of the year before the date the
individual health plan intends to discontinue the particular type of individual health plan;
new text end
new text begin
(2) provide written notice to each individual enrolled in the individual health plan no
later than 90 days before the date the coverage is discontinued;
new text end
new text begin
(3) offer each individual covered by the individual health plan that the health carrier
intends to discontinue the option to purchase on a guaranteed-issue basis any other individual
health plan currently offered by the health carrier for individuals in that market; and
new text end
new text begin
(4) act uniformly without regard to any factor relating to the health status factor of
covered individuals or dependents of covered individuals who may become eligible for
coverage.
new text end
new text begin
(b) The commissioner may disapprove a health carrier discontinuing a particular type
of individual health plan within 60 days after receiving notice under paragraph (a) if the
commissioner determines discontinuing the plan is not in Minnesota policyholders' best
interest. When making the determination under this paragraph, the commissioner may
consider the size of plan enrollment, the availability of comparable individual health plan
options offered by the health carrier in Minnesota, or any other factor the commissioner
deems relevant.
new text end
new text begin
(c) A health carrier may appeal the commissioner's determination under paragraph (b)
to disapprove the health carrier's plan to discontinue a particular type of individual health
plan in Minnesota. An appeal under this paragraph is subject to the contested case procedures
under chapter 14 and must be made within 30 days of the date the commissioner makes a
written determination under paragraph (b).
new text end
Sec. 3.
Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:
Subd. 2.
Coverage cancellation; nonrenewal.
No health maintenance organization may
cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
for health care coverage; (2) termination of the health care plannew text begin subject to section 62A.65,
subdivisions 2 and 2anew text end ; (3) termination of the group plan; (4) enrollee moving out of the area
served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
62D.104; (6) failure to deleted text begin make co-payments required bydeleted text end new text begin pay premiums as provided by the
terms ofnew text end the health care plannew text begin , including timeliness requirementsnew text end ; (7) fraud or
misrepresentation by the enrollee with respect to eligibility for coverage or any other material
fact; or (8) other reasons established in rules promulgated by the commissioner of health.
Sec. 4.
Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:
Subd. 2a.
Cancellation or nonrenewal notice.
Enrollees shall be given 30 days' notice
of any cancellation or nonrenewal, except thatnew text begin : (1) enrollees in a plan terminated under
section 62A.65, subdivisions 2, clause (4), and 2a, must receive the 90 days' notice required
under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2)new text end enrollees who are
eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive
90 days' notice as provided under section 62D.121, subdivision 5.
Sec. 5.
Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:
Subdivision 1.
Replacement coverage.
When membership of an enrollee who has
individual health coverage is terminated by the health maintenance organization for a reason
other than (a) failure to pay the charge for health care coverage; (b) failure to deleted text begin make
co-payments required bydeleted text end new text begin pay premiums as provided by the terms ofnew text end the health care plannew text begin ,
new text end new text begin including timeliness requirementsnew text end ; (c) enrollee moving out of the area served; or (d) a
materially false statement or misrepresentation by the enrollee in the application for
membership, the health maintenance organization must offer or arrange to offer replacement
coverage, without evidence of insurability, without preexisting condition exclusions, and
without interruption of coverage.
Sec. 6.
Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:
Subd. 4.
Contract.
Pursuant to a request for proposal, deleted text begin the commissioner of administration,
in consultation withdeleted text end the commissioners of health and commercedeleted text begin , shalldeleted text end new text begin mustnew text end contract with
deleted text begin at least three organizationsdeleted text end new text begin more than one organizationnew text end or business deleted text begin entitiesdeleted text end new text begin entitynew text end to provide
independent external reviews of all adverse determinations submitted for external review.
The contract deleted text begin shalldeleted text end new text begin mustnew text end ensure that the fees for services rendered in connection with the
reviews are reasonable.
Sec. 7.
Minnesota Statutes 2024, section 65B.02, subdivision 7, is amended to read:
Subd. 7.
Participation ratio.
"Participation ratio" means the ratio of the member's
Minnesota premiums, or other measure of business written approved by the commissioner,
in relation to the comparable statewide totals for all members.
(1) For private passenger nonfleet automobile insurance coverages the participation ratio
shall be based on voluntary car years written in this state for the calendar year ending
December 31 of the second prior year, as reported by the statistical agent of each member
as private passenger nonfleet exposures.
(2) For insurance coverages on all other automobiles, including insurance for fleets,
commercial vehicles, public vehicles and garages, the ratio shall be based on the total
Minnesota gross, direct automobile insurance premiums written, including both policy and
membership fees less return premiums and premiums on policies not taken, without including
reinsurance assumed and without deducting reinsurance ceded, and less the amount of such
premiums reported as received for insurance on private passenger nonfleet vehicles, for the
calendar year ending December 31 of the second prior year.
(3) For the purpose of determining each member's responsibility for expenses and
assessmentsnew text begin to operate the facilitynew text end , the ratio shall be based on each member's total Minnesota
car years and gross, direct premiums written, including both policy and membership fees
less return premiums and premiums on policies not taken, without including reinsurance
assumed and without deducting reinsurance ceded, for the calendar year ending December
31 of the second prior year, provided, however, that the preliminary determination of each
member's responsibility for expenses and assessments may use the calendar year ending
December 31 of the third prior year.
Sec. 8.
Minnesota Statutes 2024, section 65B.05, is amended to read:
65B.05 POWER OF FACILITY, GOVERNING COMMITTEE.
new text begin
(a) The facility is authorized to: (1) issue or cause to be issued insurance policies in the
name of the Minnesota automobile insurance plan to applicants for the types of insurance
available under the plan, subject to limits specified in the plan of operation; (2) underwrite
the insurance and adjust and pay losses with respect to the plan; and (3) retain, hire, or
appoint an individual or company to perform a function under clause (1) or (2).
new text end
new text begin (b) new text end The governing committee shall have the power to direct the operation of the facility
in all pursuits consistent with the purposes and terms of sections 65B.01 to 65B.12, including
but not limited to deleted text begin the followingdeleted text end :
(1) deleted text begin To sue and bedeleted text end new text begin suing and beingnew text end sued in the name of the facility and deleted text begin todeleted text end assess each
member in accord with its participation ratio to pay any judgment against the facility as an
entity, provided, however, that no judgment against the facility shall create any liabilities
in one or more members disproportionate to their participation ratio or an individual
representing members on the governing committeedeleted text begin .deleted text end new text begin ;
new text end
(2) deleted text begin To delegatedeleted text end new text begin delegatingnew text end ministerial duties, deleted text begin to hiredeleted text end new text begin hiringnew text end a managernew text begin ,new text end and deleted text begin to contractdeleted text end new text begin
contractingnew text end for goods and services from othersdeleted text begin .deleted text end new text begin ;
new text end
(3) deleted text begin To assessdeleted text end new text begin assessingnew text end members on the basis of participation ratios to cover anticipated
costs of operation and administration of the facilitydeleted text begin .deleted text end new text begin ; and
new text end
(4) deleted text begin To imposedeleted text end new text begin imposingnew text end limitations on cancellation or nonrenewal by members of
insureds covered pursuant to placement through the facility in addition to the limitations
imposed by chapter 72A and sections 65B.1311 to 65B.21.
Sec. 9.
Minnesota Statutes 2024, section 65B.06, subdivision 1, is amended to read:
Subdivision 1.
Distribution of private passenger, nonfleet auto risks.
With respect
to private passenger, nonfleet automobiles, the facility shall provide for deleted text begin the equitable
distribution of qualified applicants todeleted text end membersnew text begin to share premium, losses, costs, and expensesnew text end
in accordance with the participation ratio deleted text begin or among these insurance companies as selected
under the provisions of the plan of operationdeleted text end .
Sec. 10.
Minnesota Statutes 2024, section 65B.06, subdivision 2, is amended to read:
Subd. 2.
Private passenger; nonfleet auto coverage.
With respect to private passenger,
nonfleet automobiles, the facility shall provide for the issuance of policies of automobile
insurance deleted text begin by membersdeleted text end with coverage as follows:
(1) bodily injury liability and property damage liability coverage in the minimum amounts
specified in section 65B.49, subdivision 3;
(2) uninsured and underinsured motorist coverages as required by section 65B.49,
subdivisions 3a and 4a;
(3) a reasonable selection of higher limits of liability coverage up to $50,000 because
of bodily injury to or death of one person in any one accident and, subject to such limit for
one person, up to $100,000 because of bodily injury to or death of two or more persons in
any one accident, and up to $25,000 because of injury to or destruction of property of others
in any one accident, or higher limits of liability coverage as recommended by the governing
committee and approved by the commissioner;
(4) basic economic loss benefits, as required by section 65B.44, and other optional
coverages as recommended by the governing committee and approved by the commissioner;
and
(5) automobile physical damage coverage, including coverage of loss by collision, subject
to deductible options.
Sec. 11.
Minnesota Statutes 2024, section 65B.06, subdivision 3, is amended to read:
Subd. 3.
Other auto coverage.
With respect to all automobiles not included in
subdivisions 1 and 2, the facility shall provide:
(1) the minimum limits of coverage required by section 65B.49, subdivisions 2, 3, 3a,
and 4a, or higher limits of liability coverage as recommended by the governing committee
and approved by the commissioner;
(2) for the equitable deleted text begin distribution of qualified applicantsdeleted text end new text begin sharing of premium, losses,
costs, and expensesnew text end for this coverage among the members in deleted text begin accorddeleted text end new text begin accordancenew text end with the
applicable participation ratiodeleted text begin , or among these insurance companies as selected under the
provisions of the plan of operationdeleted text end ; and
(3) for a school district or contractor transporting school children under contract with a
school district, that amount of automobile liability insurance coverage, not to exceed
$1,000,000, required by the school district by resolution or contract, or that portion of such
$1,000,000 of coverage for which the school district or contractor applies and for which it
is eligible under section 65B.10.
Sec. 12.
Minnesota Statutes 2024, section 65B.10, subdivision 2, is amended to read:
Subd. 2.
Termination of eligibility.
Eligibility for placement through the facility will
terminate if an insured is offered equivalent coverage in the voluntary market at a rate lower
than the facility rate. deleted text begin If the member that is required to provide coverage by the facility makes
such an offer after giving 30 days' advance written notice to the agent of record before
making the offer, the member shall have no further obligation to the agent of record.
deleted text end
Sec. 13.
Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
read:
new text begin Subd. 42. new text end
new text begin Availability of current policy. new text end
new text begin
After an original policy of automobile insurance
under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
first named insured within 21 days of the date a request for the current policy is received.
The copy may be delivered in paper form, electronically, or via a website link. An insurer
is required to provide a current policy in response to a request under this subdivision once
per policy period.
new text end
Sec. 14. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 65B.10, subdivision 3,
new text end
new text begin
is repealed.
new text end
ARTICLE 3
LIMITED LONG-TERM CARE INSURANCE
Section 1.
new text begin
[62A.481] LIMITED LONG-TERM CARE INSURANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Short title. new text end
new text begin
This section may be known and cited as the "Limited
Long-Term Care Insurance Act."
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have the
meanings given.
new text end
new text begin
(b) "Applicant" means:
new text end
new text begin
(1) in the case of an individual limited long-term care insurance policy, the person who
seeks to contract for benefits; or
new text end
new text begin
(2) in the case of a group limited long-term care insurance policy, the proposed certificate
holder.
new text end
new text begin
(c) "Certificate" means a certificate issued under a group limited long-term care insurance
policy that has been delivered or issued for delivery in Minnesota.
new text end
new text begin
(d) "Commissioner" means the commissioner of commerce.
new text end
new text begin
(e) "Elimination period" means the length of time between meeting the eligibility for
benefit payment and receiving benefit payments from an insurer.
new text end
new text begin
(f) "Group limited long-term care insurance" means a limited long-term care insurance
policy that is delivered or issued for delivery in Minnesota and issued to:
new text end
new text begin
(1) one or more employers or labor organizations, a trust or the trustees of a fund
established by one or more employers, labor organizations, or a combination of employers
and labor organizations for: (i) employees, former employees, or a combination of employees
or former employees; or (ii) members, former members, or a combination of members or
former members of the labor organizations;
new text end
new text begin
(2) a professional, trade, or occupational association for the association's members,
former members, retired members, or a combination of members, former members, or retired
members, if the association:
new text end
new text begin
(i) is composed of individuals, all of whom are or were actively engaged in the same
profession, trade, or occupation; and
new text end
new text begin
(ii) has been maintained in good faith for purposes other than obtaining insurance;
new text end
new text begin
(3) an association, a trust, or the trustees of a fund established, created, or maintained
for the benefit of members of one or more associations. Prior to advertising, marketing, or
offering the policy within Minnesota, the association or associations, or the insurer of the
association or associations, must file evidence with the commissioner that the association
or associations have at the outset:
new text end
new text begin
(i) a minimum of 100 persons;
new text end
new text begin
(ii) been organized and maintained in good faith for purposes other than obtaining
insurance;
new text end
new text begin
(iii) been in active existence for at least one year; and
new text end
new text begin
(iv) a constitution and bylaws that provide:
new text end
new text begin
(A) the association or associations hold regular meetings not less than annually to further
purposes of the members;
new text end
new text begin
(B) except for credit unions, the association or associations collect dues or solicit
contributions from members; and
new text end
new text begin
(C) the members have voting privileges and representation on the governing board and
committees.
new text end
new text begin
Thirty days after the filing, the association or associations are deemed to satisfy the
organizational requirements unless the commissioner makes a finding that the association
or associations do not satisfy the organizational requirements; or
new text end
new text begin
(4) a group other than a group described in clauses (1) to (3), subject to the commissioner
finding that:
new text end
new text begin
(i) issuing the policy is not contrary to the public interest;
new text end
new text begin
(ii) issuing the policy results in acquisition or administrative economies; and
new text end
new text begin
(iii) the policy's benefits are reasonable in relation to the premiums charged.
new text end
new text begin
(g) "Limited long-term care insurance" means an insurance policy or rider:
new text end
new text begin
(1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
organization; or (vi) a similar organization, to the extent the organization is authorized to
issue life or health insurance;
new text end
new text begin
(2) advertised, marketed, offered, or designed to provide coverage for less than 12
consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
or other basis; and
new text end
new text begin
(3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care service provided in a setting other than a
hospital's acute care unit.
new text end
new text begin
Limited long-term care insurance includes a policy or rider that provides for payment of
benefits based upon cognitive impairment or the loss of functional capacity. Limited
long-term care insurance does not include an insurance policy that is offered primarily to
provide basic Medicare supplement coverage, basic hospital expense coverage, basic
medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
expense coverage, disability income or related asset-protection coverage, accident-only
coverage, specified disease or specified accident coverage, or limited benefit health coverage.
new text end
new text begin
(h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
health, hospital, or medical service corporation; prepaid health plan; health maintenance
organization; or any similar organization.
new text end
new text begin
(i) "Waiting period" means the time an insured individual must wait before some or all
of the insured individual's coverage becomes effective.
new text end
new text begin Subd. 3. new text end
new text begin Scope. new text end
new text begin
(a) This section applies to policies delivered or issued for delivery in
Minnesota on or after January 1, 2026. This section does not supersede an obligation that
an entity subject to this section has to comply with other applicable insurance laws to the
extent the other insurance laws do not conflict with this section, except that laws and
regulations designed and intended to apply to Medicare supplement insurance policies must
not be applied to limited long-term care insurance.
new text end
new text begin
(b) Notwithstanding any other provision of this section, a product, policy, certificate, or
rider advertised, marketed, or offered as limited long-term care insurance is subject to this
section.
new text end
new text begin Subd. 4. new text end
new text begin Group limited long-term care insurance; extra-territorial jurisdiction. new text end
new text begin
Group
limited long-term care insurance coverage must not be offered to a Minnesota resident under
a group policy issued in another state to a group described in subdivision 2, paragraph (f),
clause (4), unless Minnesota or another state having statutory and regulatory limited
long-term care insurance requirements substantially similar to those adopted in Minnesota
makes a determination that the statutory and regulatory limited long-term care insurance
requirements have been met.
new text end
new text begin Subd. 5. new text end
new text begin
Limited long-term care insurance; disclosure and performance
standards.
new text end
new text begin
(a) A limited long-term care insurance policy must not:
new text end
new text begin
(1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
certificate holder's age, gender, or deterioration of mental or physical health;
new text end
new text begin
(2) contain a provision that establishes a new waiting period in the event existing coverage
is converted to or replaced by a new or other form of coverage within the same company,
except with respect to an increase in benefits voluntarily selected by the insured individual
or group policyholder; or
new text end
new text begin
(3) provide coverage for only skilled nursing care or provide significantly more coverage
for skilled nursing care in a facility than coverage provided for lower levels of care.
new text end
new text begin
(b) A limited long-term care insurance policy or certificate issued to a group identified
in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
for preexisting condition that is more restrictive than or excludes a condition for which
medical advice or treatment was recommended by or received from a health care services
provider within the six months preceding the date an insured individual's coverage is
effective; and (2) excluding coverage for a loss or confinement that is the result of a
preexisting condition unless the loss or confinement begins within six months of the date
an insured individual's coverage is effective. The commissioner may extend the limitation
periods established in clauses (1) and (2) with respect to specific age group categories in
specific policy forms upon a finding that the extension is in the public interest. The definition
of preexisting condition required under clause (1) does not prohibit an insurer from using
an application form designed to elicit the complete health history of an applicant and, on
the basis of the applicant's answers on the application, from underwriting in accordance
with that insurer's established underwriting standards. Unless otherwise provided in the
policy or certificate, an insurer is not required to cover a preexisting condition, regardless
of whether the preexisting condition is disclosed on the application, until the waiting period
under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting diseases or physical conditions
beyond the waiting period established in clause (2).
new text end
new text begin
(c) A limited long-term care insurance policy must not be delivered or issued for delivery
in Minnesota if the policy conditions eligibility:
new text end
new text begin
(1) for any benefits, on a prior hospitalization
requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
higher level of institutional care; or (3) for any benefits other than waiver of premium,
post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
of skilled care services.
new text end
new text begin
(d) The commissioner may adopt administrative rules that establish loss ratio standards
for limited long-term care insurance policies if a specific reference to limited long-term
care insurance policies is contained in the administrative rule.
new text end
new text begin
(e) A limited long-term care insurance applicant has the right to: (1) return the policy,
certificate, or rider to the company or the company's agent or insurance producer within 30
days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
policy, certificate, or rider for any reason.
new text end
new text begin
(f) A limited long-term care insurance policy, certificate, or rider must have a notice
prominently printed on the first page or attached to the policy, certificate, or rider that
includes specific instructions for a limited long-term care insurance applicant to return a
policy, certificate, or rider under paragraph (e). The following statement or a substantially
similar statement must be included with the instructions:
new text end
new text begin
"You have 30 days from the date you receive this policy, certificate, or rider to review
and return it to the company if you decide not to keep it. You do not have to tell the company
why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
return it to the company at the company's administrative office, or you may return it to the
agent or insurance producer that you bought it from. You must return the policy, certificate,
or rider within 30 days of the date you first received it. The company must refund the full
amount of any premium paid within 30 days of the date the company receives the returned
policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
A returned policy, certificate, or rider is void, as if it never was issued."
new text end
new text begin
This paragraph does not apply to certificates issued pursuant to a policy issued to a group
defined in subdivision 2, paragraph (f), clause (1).
new text end
new text begin
(g) A coverage outline must be delivered to a prospective applicant for limited long-term
care insurance at the time an initial solicitation is made, using a means that prominently
directs the recipient's attention to the coverage outline and the coverage outline's purpose.
The commissioner must prescribe: (1) a standard format, including style, arrangement, and
overall appearance; and (2) the content that must be contained on a coverage outline. With
respect to an agent solicitation, the agent must deliver the coverage outline before presenting
an application or enrollment form. With respect to a direct response solicitation, the coverage
outline must be provided in conjunction with an application or enrollment form. Delivery
of a coverage outline is not required for a policy issued to a group defined in subdivision
2, paragraph (f), clause (1), if the information described in paragraph (h) is contained in
other materials relating to enrollment. A copy of the other materials must be made available
to the commissioner upon request.
new text end
new text begin
(h) The coverage outline provided under paragraph (g) must include:
new text end
new text begin
(1) a description of the principal benefits and coverage provided in the policy;
new text end
new text begin
(2) a description of the eligibility triggers for benefits and how the eligibility triggers
are met;
new text end
new text begin
(3) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy;
new text end
new text begin
(4) a statement describing the terms under which the policy, certificate, or both may be
continued in force or discontinued, including any reservation in the policy of a right to
change premium. A continuation or conversion provision for group coverage must be
specifically described;
new text end
new text begin
(5) a statement indicating that coverage outline is a summary only and not an insurance
contract, and that the policy or group master policy contains the governing contractual
provisions;
new text end
new text begin
(6) a description of the terms under which the policy or certificate may be returned and
premium refunded;
new text end
new text begin
(7) a brief description of the relationship between cost of care and benefits; and
new text end
new text begin
(8) a statement that discloses to the policyholder or certificate holder that the policy is
not long-term care insurance.
new text end
new text begin
(i) A certificate issued pursuant to a group limited long-term care insurance policy that
is delivered or issued for delivery in Minnesota must include:
new text end
new text begin
(1) a description of the principal benefits and coverage provided in the policy;
new text end
new text begin
(2) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy; and
new text end
new text begin
(3) a statement indicating that the group master policy determines governing contractual
provisions.
new text end
new text begin
(j) If an application for a limited long-term care insurance contract or certificate is
approved, the issuer must deliver the contract or certificate of insurance to the applicant no
later than 30 days after the date the application is approved.
new text end
new text begin
(k) If a claim under a limited long-term care insurance contract is denied, the issuer
must, within 60 days of the date the policyholder, certificate holder, or a representative of
the policyholder or certificate holder submits a written request:
new text end
new text begin
(1) provide a written explanation detailing the reasons for the denial; and
new text end
new text begin
(2) make available all information directly related to the denial.
new text end
new text begin
(l) A disclosure, statement, or written information and explanation required in this section,
whether in print or electronic form, must accommodate the communication needs of
individuals with disabilities and persons with limited English proficiency, as required by
law.
new text end
new text begin Subd. 6. new text end
new text begin Incontestability period. new text end
new text begin
(a) An insurer may (1) rescind a limited long-term
care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
insurance claim, for a policy or certificate that has been in force for less than six months
upon a showing of misrepresentation that is material to the coverage acceptance.
new text end
new text begin
(b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
certificate that has been in force for at least six months but less than two years upon a
showing of misrepresentation that is both material to the coverage acceptance and that
pertains to the condition for which benefits are sought.
new text end
new text begin
(c) A policy or certificate that has been in force for two years is not contestable upon
the grounds of misrepresentation alone. A policy or certificate that has been in force for
two years may be contested only upon a showing that the insured knowingly and intentionally
misrepresented relevant facts relating to the insured individual's health.
new text end
new text begin
(d) A limited long-term care insurance policy or certificate may be field issued if
compensation to the field issuer is not based on the number of policies or certificates issued.
For purposes of this paragraph, "field issued" means a policy or certificate issued by a
producer or a third-party administrator (1) pursuant to the underwriting authority granted
to the producer or third-party administrator by an insurer, and (2) using the insurer's
underwriting guidelines.
new text end
new text begin
(e) If an insurer paid benefits under the limited long-term care insurance policy or
certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
is rescinded.
new text end
new text begin Subd. 7. new text end
new text begin Nonforfeiture benefits. new text end
new text begin
(a) A limited long-term care insurance policy may
offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
must provide a contingent benefit upon lapse that must be available for a specified period
of time after a substantial increase in premium rates, as determined by the commissioner
under paragraph (c).
new text end
new text begin
(b) When a group limited long-term care insurance policy is issued, a nonforfeiture
benefit offer must be made to the group policyholder. If the policy is issued as group limited
long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
other than a continuing care retirement community or other similar entity, a nonforfeiture
benefit offer must be made to each proposed certificate holder.
new text end
new text begin
(c) The commissioner must adopt administrative rules that specify: (1) the type or types
of nonforfeiture benefits that must be offered as part of limited long-term care insurance
policies and certificates; (2) the standards for nonforfeiture benefits; and (3) requirements
regarding contingent benefit upon lapse, including determining the specified period of time
during which a contingent benefit upon lapse is available and the substantial premium rate
increase that triggers a contingent benefit upon lapse, as described in paragraph (a).
new text end
new text begin Subd. 8. new text end
new text begin Administrative rulemaking. new text end
new text begin
(a) The commissioner must adopt reasonable
administrative rules to: (1) promote premium adequacy; (2) protect a policyholder in the
event of a substantial rate increase; and (3) establish minimum standards for producer
education, marketing practices, producer compensation, producer testing, independent
review of benefit determinations, penalties, and reporting practices for limited long-term
care insurance.
new text end
new text begin
(b) Administrative rules adopted under this section are subject to chapter 14.
new text end
new text begin Subd. 9. new text end
new text begin Severability. new text end
new text begin
If any provision of this section or the application of the provision
to any person or circumstance is held invalid for any reason, the remainder of the section
and the application of the invalid provision to other persons or circumstances is not affected.
new text end
new text begin Subd. 10. new text end
new text begin Penalties. new text end
new text begin
In addition to any other penalties provided by the laws of Minnesota,
an insurer or producer that violates any requirement under this section or other law relating
to the regulation of limited long-term care insurance or the marketing of limited long-term
care insurance is subject to a fine of up to three times the amount of commissions paid for
each policy involved in the violation or up to $10,000, whichever is greater.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2026.
new text end
ARTICLE 4
MEDICARE SUPPLEMENT INSURANCE
Section 1.
Minnesota Statutes 2024, section 62A.31, subdivision 1, is amended to read:
Subdivision 1.
Policy requirements.
No individual or group policy, certificate, subscriber
contract issued by a health service plan corporation regulated under chapter 62C, or other
evidence of accident and health insurance the effect or purpose of which is to supplement
Medicare coverage, including to supplement coverage under Medicare Advantage plans
established under Medicare Part C, issued or delivered in this state or offered to a resident
of this state shall be sold or issued to an individual covered by Medicare unless the
requirements in subdivisions 1a to deleted text begin 1wdeleted text end new text begin 1vnew text end are met.
Sec. 2.
Minnesota Statutes 2024, section 62A.31, subdivision 1f, is amended to read:
Subd. 1f.
Suspension based on entitlement to medical assistance.
(a) The policy or
certificate must provide that benefits and premiums under the policy or certificate shall be
suspended for any period that may be provided by federal regulation at the request of the
policyholder or certificate holder for the period, not to exceed 24 months, in which the
policyholder or certificate holder has applied for and is determined to be entitled to medical
assistance under title XIX of the Social Security Act, but only if the policyholder or certificate
holder notifies the issuer of the policy or certificate within 90 days after the date the
individual becomes entitled to this assistance.
(b) If suspension occurs and if the policyholder or certificate holder loses entitlement
to this medical assistance, the policy or certificate shall be automatically reinstated, effective
as of the date of termination of this entitlement, if the policyholder or certificate holder
provides notice of loss of the entitlement within 90 days after the date of the loss and pays
the premium attributable to the period, effective as of the date of termination of entitlement.
(c) The policy must provide that upon reinstatement (1) there is nonew text begin additionalnew text end waiting
period with respect to treatment of preexisting conditions, (2) coverage is provided which
is substantially equivalent to coverage in effect before the date of the suspension. If the
suspended policy provided coverage for outpatient prescription drugs, reinstitution of the
policy for Medicare Part D enrollees must be without coverage for outpatient prescription
drugs and must otherwise provide coverage substantially equivalent to the coverage in effect
before the date of suspension, and (3) premiums are classified on terms that are at least as
favorable to the policyholder or certificate holder as the premium classification terms that
would have applied to the policyholder or certificate holder had coverage not been suspended.
Sec. 3.
Minnesota Statutes 2024, section 62A.31, subdivision 1h, is amended to read:
Subd. 1h.
Limitations on denials, conditions, and pricing of coverage.
No health
carrier issuing Medicare-related coverage in this state may impose preexisting condition
limitations or otherwise deny or condition the issuance or effectiveness of any such coverage
available for sale in this state, nor may it discriminate in the pricing of such coverage,
because of the health status, claims experience, receipt of health care, medical condition,
or age of an applicant where an application for such coverage is submitteddeleted text begin : (1)deleted text end prior to or
during the six-month period beginning with the first day of the month in which an individual
first enrolled for benefits under Medicare Part Bdeleted text begin ; or (2) during the open enrollment perioddeleted text end .
This subdivision applies to each Medicare-related coverage offered by a health carrier
regardless of whether the individual has attained the age of 65 years. If an individual who
is enrolled in Medicare Part B due to disability status is involuntarily disenrolled due to loss
of disability status, the individual is eligible for another six-month enrollment period provided
under this subdivision beginning the first day of the month in which the individual later
becomes eligible for and enrolls again in Medicare Part B deleted text begin and during the open enrollment
perioddeleted text end . An individual who is or was previously enrolled in Medicare Part B due to disability
status is eligible for another six-month enrollment period under this subdivision beginning
the first day of the month in which the individual has attained the age of 65 years and either
maintains enrollment in, or enrolls again in, Medicare Part B deleted text begin and during the open enrollment
perioddeleted text end . If an individual enrolled in Medicare Part B voluntarily disenrolls from Medicare
Part B because the individual becomes enrolled under an employee welfare benefit plan,
the individual is eligible for another six-month enrollment period, as provided in this
subdivision, beginning the first day of the month in which the individual later becomes
eligible for and enrolls again in Medicare Part B deleted text begin and during the open enrollment perioddeleted text end .
Sec. 4.
Minnesota Statutes 2024, section 62A.31, subdivision 1p, is amended to read:
Subd. 1p.
Renewal or continuation provisions.
Medicare supplement policies and
certificates shall include a renewal or continuation provision. The language or specifications
of the provision shall be consistent with the type of contract issued. The provision shall be
appropriately captioned and shall appear on the first page of the policy or certificate, and
shall include any reservation by the issuer of the right to change premiums. Except for riders
or endorsements by which the issuer effectuates a request made in writing by the insured,
exercises a specifically reserved right under a Medicare supplement policy or certificate,
or is required to reduce or eliminate benefits to avoid duplication of Medicare benefits, all
riders or endorsements added to a Medicare supplement policy or certificate after the date
of issue or at reinstatement or renewal that reduce or eliminate benefits or coverage in the
policy or certificate shall require a signed acceptance by the insured. After the date of policy
or certificate issue, a rider or endorsement that increases benefits or coverage with a
concomitant increase in premium during the policy or certificate term shall be agreed to in
writing and signed by the insured, unless the benefits are required by the minimum standards
for Medicare supplement policies or if the increased benefits or coverage is required by
law. Where a separate additional premium is charged for benefits provided in connection
with riders or endorsements, the premium charge shall be set forth in the policy, declaration
page, or certificate.new text begin If a Medicare supplement policy or certificate contains limitations with
respect to preexisting conditions, the limitations shall appear as a separate paragraph of the
policy or certificate and be labeled as "preexisting condition limitations."
new text end
Issuers of accident and sickness policies or certificates that provide hospital or medical
expense coverage on an expense incurred or indemnity basis to persons eligible for Medicare
shall provide to those applicants a "Guide to Health Insurance for People with Medicare"
in the form developed by the Centers for Medicare and Medicaid Services and in a type
size no smaller than 12-point type. Delivery of the guide must be made whether or not such
policies or certificates are advertised, solicited, or issued as Medicare supplement policies
or certificates as defined in this section and section 62A.3099. Except in the case of direct
response issuers, delivery of the guide must be made to the applicant at the time of
application, and acknowledgment of receipt of the guide must be obtained by the issuer.
Direct response issuers shall deliver the guide to the applicant upon request, but no later
than the time at which the policy is delivered.
Sec. 5.
Minnesota Statutes 2024, section 62A.31, subdivision 1u, is amended to read:
Subd. 1u.
Guaranteed issue for eligible persons.
(a)(1) Eligible persons are those
individuals described in paragraph (b) who seek to enroll under the policy during the period
specified in paragraph (c) and who submit evidence of the date of termination or
disenrollment described in paragraph (b), or of the date of Medicare Part D enrollment, with
the application for a Medicare supplement policy.
(2) With respect to eligible persons, an issuer shall not: deny or condition the issuance
or effectiveness of a Medicare supplement policy described in paragraph (c) that is offered
and is available for issuance to new enrollees by the issuer; discriminate in the pricing of
such a Medicare supplement policy because of health status, claims experience, receipt of
health care, medical condition, or age; or impose an exclusion of benefits based upon a
preexisting condition under such a Medicare supplement policy.
(b) An eligible person is an individual described in any of the following:
(1) the individual is enrolled under an employee welfare benefit plan that provides health
benefits that supplement the benefits under Medicare; and the plan terminates, or the plan
ceases to provide all such supplemental health benefits to the individual;
(2) the individual is enrolled with a Medicare Advantage organization under a Medicare
Advantage plan under Medicare Part C, and any of the following circumstances apply, or
the individual is 65 years of age or older and is enrolled with a Program of All-Inclusive
Care for the Elderly (PACE) provider under section 1894 of the federal Social Security Act,
and there are circumstances similar to those described in this clause that would permit
discontinuance of the individual's enrollment with the provider if the individual were enrolled
in a Medicare Advantage plan:
(i) the organization's or plan's certification under Medicare Part C has been terminated
or the organization has terminated or otherwise discontinued providing the plan in the area
in which the individual resides;
(ii) the individual is no longer eligible to elect the plan because of a change in the
individual's place of residence or other change in circumstances specified by the secretary,
but not including termination of the individual's enrollment on the basis described in section
1851(g)(3)(B) of the federal Social Security Act, United States Code, title 42, section
1395w-21(g)(3)(b) (where the individual has not paid premiums on a timely basis or has
engaged in disruptive behavior as specified in standards under section 1856 of the federal
Social Security Act, United States Code, title 42, section 1395w-26), or the plan is terminated
for all individuals within a residence area;
(iii) the individual demonstrates, in accordance with guidelines established by the
Secretary, that:
(A) the organization offering the plan substantially violated a material provision of the
organization's contract in relation to the individual, including the failure to provide an
enrollee on a timely basis medically necessary care for which benefits are available under
the plan or the failure to provide such covered care in accordance with applicable quality
standards; or
(B) the organization, or agent or other entity acting on the organization's behalf, materially
misrepresented the plan's provisions in marketing the plan to the individual; or
(iv) the individual meets such other exceptional conditions as the secretary may provide;
(3)(i) the individual is enrolled with:
(A) an eligible organization under a contract under section 1876 of the federal Social
Security Act, United States Code, title 42, section 1395mm (Medicare cost);
(B) a similar organization operating under demonstration project authority, effective for
periods before April 1, 1999;
(C) an organization under an agreement under section 1833(a)(1)(A) of the federal Social
Security Act, United States Code, title 42, section 1395l(a)(1)(A) (health care prepayment
plan); or
(D) an organization under a Medicare Select policy under section 62A.318 or the similar
law of another state; and
(ii) the enrollment ceases under the same circumstances that would permit discontinuance
of an individual's election of coverage under clause (2);
(4) the individual is enrolled under a Medicare supplement policy, and the enrollment
ceases because:
(i)(A) of the insolvency of the issuer or bankruptcy of the nonissuer organization; or
(B) of other involuntary termination of coverage or enrollment under the policy;
(ii) the issuer of the policy substantially violated a material provision of the policy; or
(iii) the issuer, or an agent or other entity acting on the issuer's behalf, materially
misrepresented the policy's provisions in marketing the policy to the individual;
(5)(i) the individual was enrolled under a Medicare supplement policy and terminates
that enrollment and subsequently enrolls, for the first time, with any Medicare Advantage
organization under a Medicare Advantage plan under Medicare Part C; any eligible
organization under a contract under section 1876 of the federal Social Security Act, United
States Code, title 42, section 1395mm (Medicare cost); any similar organization operating
under demonstration project authority; any PACE provider under section 1894 of the federal
Social Security Act, or a Medicare Select policy under section 62A.318 or the similar law
of another state; and
(ii) the subsequent enrollment under item (i) is terminated by the enrollee during any
period within the first 12 months of the subsequent enrollment during which the enrollee
is permitted to terminate the subsequent enrollment under section 1851(e) of the federal
Social Security Act;
(6) the individual, upon first enrolling for benefits under Medicare Part B, enrolls in a
Medicare Advantage plan under Medicare Part C, or with a PACE provider under section
1894 of the federal Social Security Act, and disenrolls from the plan by not later than 12
months after the effective date of enrollment;
(7) the individual enrolls in a Medicare Part D plan during the initial Part D enrollment
period, as defined under United States Code, title 42, section 1395ss(v)(6)(D), and, at the
time of enrollment in Part D, was enrolled under a Medicare supplement policy that covers
outpatient prescription drugs and the individual terminates enrollment in the Medicare
supplement policy and submits evidence of enrollment in Medicare Part D along with the
application for a policy described in paragraph (e), clause (4); or
(8) the individual was enrolled in a state public program and is losing coverage due to
the unwinding of the Medicaid continuous enrollment conditions, as provided by Code of
Federal Regulations, title 45, section 155.420 (d)(9) and (d)(1), and Public Law 117-328,
section 5131 (2022).
(c)(1) In the case of an individual described in paragraph (b), clause (1), the guaranteed
issue period begins on the later of: (i) the date the individual receives a notice of termination
or cessation of all supplemental health benefits or, if a notice is not received, notice that a
claim has been denied because of a termination or cessation; or (ii) the date that the applicable
coverage terminates or ceases; and ends 63 days after the later of those two dates.
(2) In the case of an individual described in paragraph (b), clause (2), (3), (5), or (6),
whose enrollment is terminated involuntarily, the guaranteed issue period begins on the
date that the individual receives a notice of termination and ends 63 days after the date the
applicable coverage is terminated.
(3) In the case of an individual described in paragraph (b), clause (4), item (i), the
guaranteed issue period begins on the earlier of: (i) the date that the individual receives a
notice of termination, a notice of the issuer's bankruptcy or insolvency, or other such similar
notice if any; and (ii) the date that the applicable coverage is terminated, and ends on the
date that is 63 days after the date the coverage is terminated.
(4) In the case of an individual described in paragraph (b), clause (2), (4), (5), or (6),
who disenrolls voluntarily, the guaranteed issue period begins on the date that is 60 days
before the effective date of the disenrollment and ends on the date that is 63 days after the
effective date.
(5) In the case of an individual described in paragraph (b), clause (7), the guaranteed
issue period begins on the date the individual receives notice pursuant to section
1882(v)(2)(B) of the Social Security Act from the Medicare supplement issuer during the
60-day period immediately preceding the initial Part D enrollment period and ends on the
date that is 63 days after the effective date of the individual's coverage under Medicare Part
D.
(6) In the case of an individual described in paragraph (b) but not described in this
paragraph, the guaranteed issue period begins on the effective date of disenrollment and
ends on the date that is 63 days after the effective date.
deleted text begin
(7) For all individuals described in paragraph (b), the open enrollment period is a
guaranteed issue period.
deleted text end
(d)(1) In the case of an individual described in paragraph (b), clause (5), or deemed to
be so described, pursuant to this paragraph, whose enrollment with an organization or
provider described in paragraph (b), clause (5), item (i), is involuntarily terminated within
the first 12 months of enrollment, and who, without an intervening enrollment, enrolls with
another such organization or provider, the subsequent enrollment is deemed to be an initial
enrollment described in paragraph (b), clause (5).
(2) In the case of an individual described in paragraph (b), clause (6), or deemed to be
so described, pursuant to this paragraph, whose enrollment with a plan or in a program
described in paragraph (b), clause (6), is involuntarily terminated within the first 12 months
of enrollment, and who, without an intervening enrollment, enrolls in another such plan or
program, the subsequent enrollment is deemed to be an initial enrollment described in
paragraph (b), clause (6).
(3) For purposes of paragraph (b), clauses (5) and (6), no enrollment of an individual
with an organization or provider described in paragraph (b), clause (5), item (i), or with a
plan or in a program described in paragraph (b), clause (6), may be deemed to be an initial
enrollment under this paragraph after the two-year period beginning on the date on which
the individual first enrolled with the organization, provider, plan, or program.
(e) The Medicare supplement policy to which eligible persons are entitled under:
(1) paragraph (b), clauses (1) to (4), is any Medicare supplement policy that has a benefit
package consisting of the basic Medicare supplement plan described in section 62A.316,
paragraph (a), plus any combination of the three optional riders described in section 62A.316,
paragraph (b), clauses (1) to (3), offered by any issuer;
(2) paragraph (b), clause (5), is the same Medicare supplement policy in which the
individual was most recently previously enrolled, if available from the same issuer, or, if
not so available, any policy described in clause (1) offered by any issuer, except that after
December 31, 2005, if the individual was most recently enrolled in a Medicare supplement
policy with an outpatient prescription drug benefit, a Medicare supplement policy to which
the individual is entitled under paragraph (b), clause (5), is:
(i) the policy available from the same issuer but modified to remove outpatient
prescription drug coverage; or
(ii) at the election of the policyholder, a policy described in clause (4), except that the
policy may be one that is offered and available for issuance to new enrollees that is offered
by any issuer;
(3) paragraph (b), clause (6), is any Medicare supplement policy offered by any issuer;
(4) paragraph (b), clause (7), is a Medicare supplement policy that has a benefit package
classified as a basic plan under section 62A.316 if the enrollee's existing Medicare
supplement policy is a basic plan or, if the enrollee's existing Medicare supplement policy
is an extended basic plan under section 62A.315, a basic or extended basic plan at the option
of the enrollee, provided that the policy is offered and is available for issuance to new
enrollees by the same issuer that issued the individual's Medicare supplement policy with
outpatient prescription drug coverage. The issuer must permit the enrollee to retain all
optional benefits contained in the enrollee's existing coverage, other than outpatient
prescription drugs, subject to the provision that the coverage be offered and available for
issuance to new enrollees by the same issuer.
(f)(1) At the time of an event described in paragraph (b), because of which an individual
loses coverage or benefits due to the termination of a contract or agreement, policy, or plan,
the organization that terminates the contract or agreement, the issuer terminating the policy,
or the administrator of the plan being terminated, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated
contemporaneously with the notification of termination.
(2) At the time of an event described in paragraph (b), because of which an individual
ceases enrollment under a contract or agreement, policy, or plan, the organization that offers
the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer
offering the policy, or the administrator of the plan, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated within ten
working days of the issuer receiving notification of disenrollment.
(g) Reference in this subdivision to a situation in which, or to a basis upon which, an
individual's coverage has been terminated does not provide authority under the laws of this
state for the termination in that situation or upon that basis.
(h) An individual's rights under this subdivision are in addition to, and do not modify
or limit, the individual's rights under subdivision 1h.
Sec. 6.
Minnesota Statutes 2024, section 62A.31, subdivision 4, is amended to read:
Subd. 4.
Prohibited policy provisions.
(a) A Medicare supplement policy or certificate
in force in the state shall not contain benefits that duplicate benefits provided by Medicare
or contain exclusions on coverage that are more restrictive than those of Medicare.
Duplication of benefits is permitted to the extent permitted under subdivision 1s, paragraph
(a), for benefits provided by Medicare Part D.
(b) No Medicare supplement policy or certificate may use waivers to exclude, limit, or
reduce coverage or benefits for specifically named or described preexisting diseases or
physical conditionsnew text begin , except as permitted under subdivision 1bnew text end .
Sec. 7.
Minnesota Statutes 2024, section 62A.44, subdivision 2, is amended to read:
Subd. 2.
Questions.
(a) Application forms shall include the following questions designed
to elicit information as to whether, as of the date of the application, the applicant has another
Medicare supplement or other health insurance policy or certificate in force or whether a
Medicare supplement policy or certificate is intended to replace any other accident and
sickness policy or certificate presently in force. A supplementary application or other form
to be signed by the applicant and agent containing the questions and statements may be
used.
"(1) You do not need more than one Medicare supplement policy or certificate.
(2) If you purchase this policy, you may want to evaluate your existing health coverage
and decide if you need multiple coverages.
(3) You may be eligible for benefits under Medicaid and may not need a Medicare
supplement policy or certificate.
(4) The benefits and premiums under your Medicare supplement policy or certificate
can be suspended, if requested, during your entitlement to benefits under Medicaid for
24 months. You must request this suspension within 90 days of becoming eligible for
Medicaid. If you are no longer entitled to Medicaid, your policy or certificate will be
reinstated if requested within 90 days of losing Medicaid eligibility.
(5) Counseling services may be available in Minnesota to provide advice concerning
medical assistance through state Medicaid, Qualified Medicare Beneficiaries (QMBs),
and Specified Low-Income Medicare Beneficiaries (SLMBs).
To the best of your knowledge:
(1) Do you have another Medicare supplement policy or certificate in force?
(a) If so, with which company?
(b) If so, do you intend to replace your current Medicare supplement policy with this
policy or certificate?
(2) Do you have any other health insurance policies that provide benefits which this
Medicare supplement policy or certificate would duplicate?
(a) If so, please name the company.
(b) What kind of policy?
(3) Are you covered for medical assistance through the state Medicaid program? If so,
which of the following programs provides coverage for you?
(a) Specified Low-Income Medicare Beneficiary (SLMB),
(b) Qualified Medicare Beneficiary (QMB), or
(c) full Medicaid Beneficiary?"
(b) Agents shall list any other health insurance policies they have sold to the applicant.
(1) List policies sold that are still in force.
(2) List policies sold in the past five years that are no longer in force.
(c) In the case of a direct response issuer, a copy of the application or supplemental
form, signed by the applicant, and acknowledged by the insurer, shall be returned to the
applicant by the insurer on delivery of the policy or certificate.
(d) Upon determining that a sale will involve replacement of Medicare supplement
coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the
applicant, before issuance or delivery of the Medicare supplement policy or certificate, a
notice regarding replacement of Medicare supplement coverage. One copy of the notice
signed by the applicant and the agent, except where the coverage is sold without an agent,
shall be provided to the applicant and an additional signed copy shall be retained by the
issuer. A direct response issuer shall deliver to the applicant at the time of the issuance of
the policy or certificate the notice regarding replacement of Medicare supplement coverage.
(e) The notice required by paragraph (d) for an issuer shall be provided in substantially
the following form in no less than 12-point type:
"NOTICE TO APPLICANT REGARDING REPLACEMENT
OF MEDICARE SUPPLEMENT INSURANCE
(Insurance company's name and address)
SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
According to (your application) (information you have furnished), you intend to terminate
existing Medicare supplement insurance and replace it with a policy or certificate to be
issued by (Company Name) Insurance Company. Your new policy or certificate will provide
30 days within which you may decide without cost whether you desire to keep the policy
or certificate.
You should review this new coverage carefully. Compare it with all accident and sickness
coverage you now have. If, after due consideration, you find that purchase of this Medicare
supplement coverage is a wise decision you should terminate your present Medicare
supplement policy. You should evaluate the need for other accident and sickness coverage
you have that may duplicate this policy.
STATEMENT TO APPLICANT BY ISSUER, AGENT, (BROKER OR OTHER
REPRESENTATIVE): I have reviewed your current medical or health insurance
coverage. To the best of my knowledge this Medicare supplement policy will not duplicate
your existing Medicare supplement policy because you intend to terminate the existing
Medicare supplement policy. The replacement policy or certificate is being purchased
for the following reason(s) (check one):
|
.
|
Additional benefits |
|
|
.
|
No change in benefits, but lower premiums |
|
|
.
|
Fewer benefits and lower premiums |
|
|
.
|
Other (please specify) |
|
|
.
|
||
|
.
|
||
|
.
|
||
new text begin
(1) Health conditions which you may presently have (preexisting conditions) may not
be immediately or fully covered under the new policy or certificate. This could result
in denial or delay of a claim for benefits under the new policy or certificate, whereas a
similar claim might have been payable under your present policy or certificate.
new text end
new text begin
(2) State law provides that your replacement policy or certificate may not contain new
preexisting conditions, waiting periods, elimination periods, or probationary periods.
The insurer will waive any time periods applicable to preexisting conditions, waiting
periods, elimination periods, or probationary periods in the new policy (or coverage)
for similar benefits to the extent the time was spent (depleted) under the original policy
or certificate.
new text end
new text begin
(3) If you still wish to terminate your present policy or certificate and replace it with
new coverage, be certain to truthfully and completely answer all questions on the
application concerning your medical and health history. Failure to include all material
medical information on an application may provide a basis for the company to deny any
future claims and to refund your premium as though your policy or certificate had never
been in force. After the application has been completed and before you sign it, review
it carefully to be certain that all information has been properly recorded. (If the policy
or certificate is guaranteed issue, this paragraph need not appear.)
new text end
Do not cancel your present policy or certificate until you have received your new policy
or certificate and you are sure that you want to keep it.
|
.
|
||
| (Signature of Agent, Broker, or Other Representative)* |
||
|
.
|
||
| (Typed Name and Address of Issuer, Agent, or Broker) |
||
|
.
|
||
| (Date) |
||
|
.
|
||
| (Applicant's Signature) |
||
|
.
|
||
| (Date) |
*Signature not required for direct response sales."
new text begin
(f) Paragraph (e), clauses (1) and (2), of the replacement notice (applicable to preexisting
conditions) may be deleted by an issuer if the replacement does not involve application of
a new preexisting condition limitation.
new text end
Sec. 8. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2024, sections 62A.3099, subdivision 18b; and 62A.31, subdivision
1w,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Laws 2023, chapter 57, article 2, section 66,
new text end
new text begin
is repealed.
new text end
Sec. 9. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 8 are effective the day following final enactment.
new text end
ARTICLE 5
INSURANCE HOLDING COMPANY SYSTEMS
Section 1.
Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Other violations. new text end
new text begin
If the commissioner believes a person has committed a
violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
insurer by affiliates or by the insurance holding company system, the violation may serve
as an independent basis for disapproving dividends or distributions and for placing the
insurer under an order of supervision under chapter 60B.
new text end
Sec. 2.
Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:
Subd. 4.
Control.
The term "control," including the terms "controlling," "controlled
by," and "under common control with," means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a person, whether
through the ownership of voting securities, by contract other than a commercial contract
for goods or nonmanagement services, or otherwise, unless the power is the result of an
official position withdeleted text begin ,deleted text end new text begin ornew text end corporate office held bydeleted text begin , or court appointment of,deleted text end the person.
Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
the power to vote, or holds proxies representing, ten percent or more of the voting securities
of any other person. This presumption may be rebutted by a showing made in the manner
provided by section 60D.19, subdivision 11, that control does not exist in fact. The
commissioner may determine, after furnishing all persons in interest notice and opportunity
to be heard and making specific findings of fact to support deleted text begin suchdeleted text end new text begin thenew text end determination, that
control exists in fact, notwithstanding the absence of a presumption to that effect.
Sec. 3.
Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:
new text begin Subd. 4c. new text end
new text begin Group capital calculation instructions. new text end
new text begin
"Group capital calculation
instructions" means the group capital calculation instructions adopted by the NAIC and as
amended by the NAIC from time to time in accordance with procedures adopted by the
NAIC.
new text end
Sec. 4.
Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:
new text begin Subd. 6b. new text end
new text begin NAIC. new text end
new text begin
"NAIC" means the National Association of Insurance Commissioners.
new text end
Sec. 5.
Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:
new text begin Subd. 6c. new text end
new text begin NAIC liquidity stress test framework. new text end
new text begin
"NAIC liquidity stress test framework"
means an NAIC publication which includes a history of the NAIC's development of
regulatory liquidity stress testing, the scope criteria applicable for a specific data year, and
the liquidity stress test instructions and reporting templates for a specific data year, scope
criteria, instructions, and reporting template being adopted by the NAIC, and as amended
by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
new text end
Sec. 6.
Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:
Subd. 7.
Person.
A "person" is an individual, a corporation,new text begin a limited liability company,new text end
a partnership, an association, a joint stock company, a trust, an unincorporated organization,
any similar entity or any combination of the foregoing acting in concert, but does not include
any joint venture partnership exclusively engaged in owning, managing, leasing, or
developing real or tangible personal property.
Sec. 7.
Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Scope criteria. new text end
new text begin
"Scope criteria," as detailed in the NAIC liquidity stress test
framework, means the designated exposure bases along with minimum magnitudes of the
designated exposure bases for the specified data year that are used to establish a preliminary
list of insurers considered scoped into the NAIC liquidity stress test framework for that data
year.
new text end
Sec. 8.
Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:
Subd. 2.
Additional investment authority.
In addition to investments in common stock,
preferred stock, debt obligations, and other securities otherwise permittednew text begin under this chapternew text end ,
a domestic insurer may also:
(a) Invest, in common stock, preferred stock, debt obligations, and other securities of
one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
investments, the insurer's surplus as regards policyholders deleted text begin will bedeleted text end new text begin isnew text end reasonable in relation
to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
amount of these investments, investments in domestic or foreign insurance subsidiariesnew text begin and
health maintenance organizationsnew text end must be excluded, and there must be included:
(1) total net money or other consideration expended and obligations assumed in the
acquisition or formation of a subsidiary, including all organizational expenses and
contributions to capital and surplus of the subsidiary whether or not represented by the
purchase of capital stock or issuance of other securities; and
(2) all amounts expended in acquiring additional common stock, preferred stock, debt
obligations, and other securitiesnew text begin ;new text end and all contributions to the capital or surplusdeleted text begin ,deleted text end of a subsidiary
subsequent to its acquisition or formation.
(b) Invest any amount in common stock, preferred stock, debt obligations, and other
securities of one or more subsidiaries engaged or organized to engage exclusively in the
ownership and management of assets authorized as investments for the insurer provided
that the subsidiary agrees to limit its investments in any asset so that the investments deleted text begin willdeleted text end new text begin
donew text end not cause the amount of the total investment of the insurer to exceed any of the investment
limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
purpose of this paragraph, "the total investment of the insurer" includes:
(1) any direct investment by the insurer in an asset; and
(2) the insurer's proportionate share of any investment in an asset by any subsidiary of
the insurer, which must be calculated by multiplying the amount of the subsidiary's
investment by the percentage of the ownership of the subsidiary.
(c) With the approval of the commissioner, invest any greater amount in common stock,
preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
investment the insurer's surplus as regards policyholders deleted text begin will bedeleted text end new text begin isnew text end reasonable in relation to
the insurer's outstanding liabilities and adequate to its financial needs.
Sec. 9.
Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:
Subdivision 1.
Filing requirements.
(a) No person other than the issuer shall: (1) make
a tender offer for or a request or invitation for tenders of, or enter into any agreement to
exchange securities deleted text begin ordeleted text end new text begin fornew text end , seek to acquire, or acquire, in the open market or otherwise, any
voting security of a domestic insurer if, after the consummation thereof, the person would,
directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
of a domestic insurer or any person controlling a domestic insurer unless, at the time the
offer, request, or invitation is made or the agreement is entered into, or before the acquisition
of the securities if no offer or agreement is involved, the person has filed with the
commissioner and has sent to the insurer, a statement containing the information required
by this section and the offer, request, invitation, agreement, or acquisition has been approved
by the commissioner in the manner prescribed in this section.
(b) For purposes of this section, a controlling person of a domestic insurer seeking to
divest its controlling interest in the domestic insurer, in any manner, shall file with the
commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
least 30 days before the cessation of control. The commissioner shall determine those
instances in which the party or parties seeking to divest or to acquire a controlling interest
in an insurer will be required to file for and obtain approval of the transaction.
(c) With respect to a transaction subject to this section, the acquiring person must also
file a preacquisition notification with the commissioner, which must contain the information
set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
may be subject to penalties specified in section 60D.18, subdivision 5.
(d) For purposes of this section, a domestic insurer includes a person controlling a
domestic insurer unless the personnew text begin ,new text end as determined by the commissionernew text begin ,new text end is either directly
or through its affiliates primarily engaged in business other than the business of insurance.
For the purposes of this section, "person" does not include any securities broker holding,
in the usual and customary deleted text begin brokersdeleted text end new text begin broker'snew text end function, less than 20 percent of the voting
securities of an insurance company or of any person that controls an insurance company.
(e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
remain confidential until the transaction is approved by the commissioner, except that all
attachments filed with the statement remain confidential after the approval unless the
commissioner, in the commissioner's discretion, determines that confidential treatment of
any of this information will interfere with enforcement of this section.
Sec. 10.
Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:
Subd. 3.
Preacquisition notification; waiting period.
(a) An acquisition covered by
subdivision 2 may be subject to an order pursuant to subdivision deleted text begin 4deleted text end new text begin 5new text end unless the acquiring
person files a preacquisition notification and the waiting period has expired. The acquired
person may file a preacquisition notification. The commissioner shall give confidential
treatment to information submitted under this section in the same manner as provided in
section 60D.22.
(b) The preacquisition notification must be in the form and contain the information as
prescribed by the National Association of Insurance Commissioners relating to those markets
that, under subdivision 2, paragraph (b), clause deleted text begin (5)deleted text end new text begin (4)new text end , cause the acquisition not to be
exempted from the provisions of this section. The commissioner may require deleted text begin thedeleted text end additional
material and information as the commissioner deems necessary to determine whether the
proposed acquisition, if consummated, would violate the competitive standard of subdivision
4. The required information may include an opinion of an economist as to the competitive
impact of the acquisition in this state accompanied by a summary of the education and
experience of the person indicating that person's ability to render an informed opinion.
(c) The waiting period required begins on the date of receipt of the commissioner of a
preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
or termination of the waiting period by the commissioner. Before the end of the waiting
period, the commissioner on a onetime basis may require the submission of additional
needed information relevant to the proposed acquisition, in which event the waiting period
shall end on the earlier of the 30th day after receipt of the additional information by the
commissioner or termination of the waiting period by the commissioner.
Sec. 11.
Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:
Subd. 4.
Materiality.
No information need be disclosed on the registration statement
filed pursuant to subdivision 2 if the information is not material for the purposes of this
section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
one percent or less of an insurer's admitted assets as of the 31st day of December next
preceding shall not be deemed material for purposes of this section.new text begin The definition of
materiality provided in this subdivision does not apply for purposes of the group capital
calculation or the NAIC liquidity stress test framework.
new text end
Sec. 12.
Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:
new text begin Subd. 11b. new text end
new text begin Group capital calculation. new text end
new text begin
(a) Except as otherwise provided in this paragraph,
the ultimate controlling person of every insurer subject to registration must concurrently
file with the registration an annual group capital calculation as directed by the commissioner.
The report must be completed in accordance with the NAIC group capital calculation
instructions, which may permit the commissioner to allow a controlling person that is not
the ultimate controlling person to file the group capital calculation. The report must be filed
with the commissioner, as determined by the commissioner in accordance with the procedures
within the Financial Analysis Handbook adopted by the NAIC. The following insurance
holding company systems are exempt from filing the group capital calculation:
new text end
new text begin
(1) an insurance holding company system that (i) has only one insurer within the insurance
holding company system's holding company structure, (ii) only writes business and is only
licensed in the insurance holding company system's domestic state, and (iii) assumes no
business from any other insurer;
new text end
new text begin
(2) an insurance holding company system that is required to perform a group capital
calculation specified by the United States Federal Reserve Board. The commissioner must
request the calculation from the Federal Reserve Board under the terms of information
sharing agreements in effect. If the Federal Reserve Board is unable to share the calculation
with the commissioner, the insurance holding company system is not exempt from the group
capital calculation filing;
new text end
new text begin
(3) an insurance holding company system whose non-United States groupwide supervisor
is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
that recognizes the United States state regulatory approach to group supervision and group
capital; or
new text end
new text begin
(4) an insurance holding company system:
new text end
new text begin
(i) that provides information to the commissioner that meets the requirements for
accreditation under the NAIC financial standards and accreditation program, either directly
or indirectly through the groupwide supervisor, that has determined the information is
satisfactory to allow the commissioner to comply with the NAIC group supervision approach,
as detailed in the NAIC Financial Analysis Handbook; and
new text end
new text begin
(ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
recognizes and accepts, as specified by the commissioner by rule, the group capital
calculation as the worldwide group capital assessment for United States insurance groups
that operate in that jurisdiction.
new text end
new text begin
(b) Notwithstanding paragraph (a), clauses (3) and (4), a commissioner must require the
group capital calculation for the United States operations of any non-United States based
insurance holding company system where, after any necessary consultation with other
supervisors or officials, requiring the group capital calculation is deemed appropriate by
the commissioner for prudential oversight and solvency monitoring purposes or for ensuring
the competitiveness of the insurance marketplace.
new text end
new text begin
(c) Notwithstanding the exemptions from filing the group capital calculation under
paragraph (a), the commissioner may exempt the ultimate controlling person from filing
the annual group capital calculation or accept a limited group capital filing or report in
accordance with criteria specified by the commissioner by rule.
new text end
new text begin
(d) If the commissioner determines that an insurance holding company system no longer
meets one or more of the requirements for an exemption from filing the group capital
calculation under this subdivision, the insurance holding company system must file the
group capital calculation at the next annual filing date unless given an extension by the
commissioner based on reasonable grounds shown.
new text end
Sec. 13.
Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:
new text begin Subd. 11c. new text end
new text begin Liquidity stress test. new text end
new text begin
(a) The ultimate controlling person of every insurer
subject to registration and also scoped into the NAIC liquidity stress test framework must
file the results of a specific year's liquidity stress test. The filing must be made to the
commissioner, as determined by the procedures within the Financial Analysis Handbook
adopted by the NAIC.
new text end
new text begin
(b) The NAIC liquidity stress test framework includes scope criteria applicable to a
specific data year. The scope criteria must be reviewed at least annually by the NAIC
Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
change made to the NAIC liquidity stress test framework or to the data year for which the
scope criteria must be measured is effective January 1 of the year following the calendar
year in which the change is adopted. An insurer meeting at least one threshold of the scope
criteria is scoped into the NAIC liquidity stress test framework for the specified data year
unless the commissioner, in consultation with the NAIC Financial Stability Task Force or
the NAIC Financial Stability Task Force's successor, determines the insurer should not be
scoped into the framework for that data year. An insurer that does not trigger at least one
threshold of the scope criteria is scoped out of the NAIC liquidity stress test framework for
the specified data year unless the commissioner, in consultation with the NAIC Financial
Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
the insurer should be scoped into the framework for the specified data year.
new text end
new text begin
(c) The commissioner and other state insurance commissioners must avoid scoping
insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The
commissioner, in consultation with the NAIC Financial Stability Task Force or the NAIC
Financial Stability Task Force's successor, must assess irregular scope status as part of an
insurer's determination.
new text end
new text begin
(d) The performance of and filing of the results from a specific year's liquidity stress
test must comply with (1) the NAIC liquidity stress test framework's instructions and
reporting templates for the specific year, and (2) any commissioner determinations, in
consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
Task Force's successor, provided within the framework.
new text end
Sec. 14.
new text begin
[60D.195] GROUP CAPITAL CALCULATION.
new text end
new text begin Subdivision 1. new text end
new text begin Annual group capital calculation; exemption permitted. new text end
new text begin
The
commissioner may exempt the ultimate controlling person from filing the annual group
capital calculation if the commissioner makes a determination that the insurance holding
company system meets the following criteria:
new text end
new text begin
(1) has annual direct written and unaffiliated assumed premium, including international
direct and assumed premium but excluding premiums reinsured with the Federal Crop
Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
new text end
new text begin
(2) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end
new text begin
(3) has no banking, depository, or other financial entity that is subject to an identified
regulatory capital framework within the insurance holding company's structure;
new text end
new text begin
(4) attests that no material changes in the transactions between insurers and noninsurers
in the group have occurred since the last annual group capital filing; and
new text end
new text begin
(5) the noninsurers within the holding company system do not pose a material financial
risk to the insurer's ability to honor policyholder obligations.
new text end
new text begin Subd. 2. new text end
new text begin Limited group capital filing. new text end
new text begin
The commissioner may accept a limited group
capital filing in lieu of the group capital calculation if:
new text end
new text begin
(1) the insurance holding company system has annual direct written and unaffiliated
assumed premium, including international direct and assumed premium but excluding
premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
of less than $1,000,000,000; and
new text end
new text begin
(2) the insurance holding company system:
new text end
new text begin
(i) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end
new text begin
(ii) does not include a banking, depository, or other financial entity that is subject to an
identified regulatory capital framework; and
new text end
new text begin
(iii) attests that no material changes in transactions between insurers and noninsurers in
the group have occurred and the noninsurers within the holding company system do not
pose a material financial risk to the insurer's ability to honor policyholder obligations.
new text end
new text begin Subd. 3. new text end
new text begin Previous exemption; required filing. new text end
new text begin
For an insurance holding company that
has previously met an exemption with respect to the group capital calculation under
subdivision 1 or 2, the commissioner may at any time require the ultimate controlling person
to file an annual group capital calculation, completed in accordance with the NAIC group
capital calculation instructions, if:
new text end
new text begin
(1) an insurer within the insurance holding company system is in a risk-based capital
action level event under section 60A.62 or a similar standard for a non-United States insurer;
new text end
new text begin
(2) an insurer within the insurance holding company system meets one or more of the
standards of an insurer deemed to be in hazardous financial condition, as defined under
section 60E.02, subdivision 5; or
new text end
new text begin
(3) an insurer within the insurance holding company system otherwise exhibits qualities
of a troubled insurer, as determined by the commissioner based on unique circumstances,
including but not limited to the type and volume of business written, ownership and
organizational structure, federal agency requests, and international supervisor requests.
new text end
new text begin Subd. 4. new text end
new text begin Non-United States jurisdictions; recognition and acceptance. new text end
new text begin
A non-United
States jurisdiction is deemed to recognize and accept the group capital calculation if the
non-United States jurisdiction:
new text end
new text begin
(1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
new text end
new text begin
(i) recognizes the United States state regulatory approach to group supervision and group
capital by providing confirmation by a competent regulatory authority in the non-United
States jurisdiction that insurers and insurance groups whose lead state is accredited by the
NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
insurance group supervision, including worldwide group governance, solvency and capital,
and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
including worldwide group governance, solvency and capital, and reporting, at the level of
the worldwide parent undertaking of the insurance or reinsurance group by the non-United
States jurisdiction; or
new text end
new text begin
(ii) if no United States insurance group operates in the non-United States jurisdiction,
indicates formally in writing to the lead state with a copy to the International Association
of Insurance Supervisors that the group capital calculation is an acceptable international
capital standard. The formal indication under this item serves as the documentation otherwise
required under item (i); and
new text end
new text begin
(2) provides confirmation by a competent regulatory authority in the non-United States
jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
affiliated entities, if applicable, must be provided to the commissioner in accordance with
a memorandum of understanding or similar document between the commissioner and the
non-United States jurisdiction, including but not limited to the International Association of
Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral
memoranda of understanding coordinated by the NAIC. The commissioner must determine,
in consultation with the NAIC committee process, if the information sharing agreement
requirements are effective.
new text end
new text begin Subd. 5. new text end
new text begin Non-United States jurisdiction; publication. new text end
new text begin
(a) A list of non-United States
jurisdictions that recognize and accept the group capital calculation under section 60D.19,
subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
process to assist the commissioner determine what insurers must file an annual group capital
calculation. The list must clarify the situations in which a jurisdiction is exempt from filing
under section 60D.19, subdivision 11b, paragraph (a), clause (4). To assist with a
determination under section 60D.19, subdivision 11b, paragraph (b), the list must also
identify whether a jurisdiction that is exempt under section 60D.19, subdivision 11b,
paragraph (a), clause (3) or (4), requires a group capital filing for any United States insurance
group's operations in the non-United States jurisdiction.
new text end
new text begin
(b) For a non-United States jurisdiction where no United States insurance group operates,
the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
support for a recommendation to be published that the non-United States jurisdiction is a
jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
committee process.
new text end
new text begin
(c) If the commissioner makes a determination pursuant to section 60D.19, subdivision
11b, that differs from the NAIC list, the commissioner must provide thoroughly documented
justification to the NAIC and other states.
new text end
new text begin
(d) Upon a determination by the commissioner that a non-United States jurisdiction no
longer meets one or more of the requirements to recognize and accept the group capital
calculation, the commissioner may provide a recommendation to the NAIC that the
non-United States jurisdiction be removed from the list of jurisdictions that recognize and
accept the group capital calculation.
new text end
Sec. 15.
Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:
Subdivision 1.
Transactions within an insurance holding company system.
(a)
Transactions within an insurance holding company system to which an insurer subject to
registration is a party are subject to the following standards:
(1) the terms shall be fair and reasonable;
(2) agreements for cost-sharing services and management shall include the provisions
required by rule issued by the commissioner;
(3) charges or fees for services performed shall be reasonable;
(4) expenses incurred and payment received shall be allocated to the insurer in conformity
with customary insurance accounting practices consistently applied;
(5) the books, accounts, and records of each party to all such transactions shall be so
maintained as to clearly and accurately disclose the nature and details of the transactions
including this accounting information as is necessary to support the reasonableness of the
charges or fees to the respective parties; deleted text begin and
deleted text end
(6) the insurer's surplus as regards policyholders following any dividends or distributions
to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
and adequate to its financial needsdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(7) if the commissioner determines an insurer subject to this chapter is in a hazardous
financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
may require the insurer to secure and maintain either a deposit, held by the commissioner,
or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
the duration of the contract, agreement, or the existence of the condition for which the
commissioner required the deposit or bond. When determining whether a deposit or bond
is required, the commissioner must consider whether concerns exist with respect to the
affiliated person's ability to fulfill the contract or agreement if the insurer entered into
liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
that would be grounds for supervision, conservation, or a delinquency proceeding, and a
deposit or bond is necessary, the commissioner may determine the amount of the deposit
or bond, not to exceed the value of the contract or agreement in any one year, and whether
the deposit or bond is required for a single contract, multiple contracts, or a contract only
with a specific person or persons;
new text end
new text begin
(8) all of an insurer's records and data held by an affiliate are and remain the property
of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
readily capable of segregation, at no additional cost to the insurer, from all other persons'
records and data. For purposes of this clause, records and data include all records and data
that are otherwise the property of the insurer in whatever form maintained, including but
not limited to claims and claim files, policyholder lists, application files, litigation files,
premium records, rate books, underwriting manuals, personnel records, financial records,
or similar records within the affiliate's possession, custody, or control. At the request of the
insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
on which the data are maintained, (iii) obtain the software that runs the operating systems
either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
must provide a waiver of any landlord lien or other encumbrance to provide the insurer
access to all records and data in the event the affiliate defaults under a lease or other
agreement; and
new text end
new text begin
(9) premiums or other funds belonging to the insurer that are collected or held by an
affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
Any right of offset in the event an insurer is placed into receivership is subject to chapter
576.
new text end
(b) The following transactions involving a domestic insurer and any person in its
insurance holding company system, including amendments or modifications of affiliate
agreements previously filed pursuant to this section, which are subject to any materiality
standards contained in clauses (1) to (7), may not be entered into unless the insurer has
notified the commissioner in writing of its intention to enter into the transaction at least 30
days prior thereto, or a shorter period the commissioner permits, and the commissioner has
not disapproved it within this period. The notice for amendments or modifications must
include the reasons for the change and the financial impact on the domestic insurer. Informal
notice must be reported, within 30 days after a termination of a previously filed agreement,
to the commissioner for determination of the type of filing required, if any:
(1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
each as of the 31st day of December next preceding;
(2) loans or extensions of credit to any person who is not an affiliate, where the insurer
makes the loans or extensions of credit with the agreement or understanding that the proceeds
of the transactions, in whole or in substantial part, are to be used to make loans or extensions
of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
making such loans or extensions of credit provided the transactions are equal to or exceed:
(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
percent of the insurer's admitted assets; each as of the 31st day of December next preceding;
(3) reinsurance agreements or modifications to those agreements, including: (i) all
reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
insurer's liabilities in any of the next three years, equals or exceeds five percent of the
insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
including those agreements which may require as consideration the transfer of assets from
an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
nonaffiliate that any portion of deleted text begin suchdeleted text end new text begin thenew text end assets will be transferred to one or more affiliates
of the insurer;
(4) all management agreements, service contracts, tax allocation agreements, guarantees,
and all cost-sharing arrangements;
(5) guarantees when made by a domestic insurer; provided, however, that a guarantee
which is quantifiable as to amount is not subject to the notice requirements of this paragraph
unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
percent of surplus as regards policyholders as of the 31st day of December next preceding.
Further, all guarantees which are not quantifiable as to amount are subject to the notice
requirements of this paragraph;
(6) direct or indirect acquisitions or investments in a person that controls the insurer or
in an affiliate of the insurer in an amount which, together with its present holdings in the
investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, new text begin as otherwise
authorized under this chapter, new text end or in nonsubsidiary insurance affiliates that are subject to the
provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and
(7) any material transactions, specified by regulation, which the commissioner determines
may adversely affect the interests of the insurer's policyholders.
Nothing contained in this section authorizes or permits any transactions that, in the case
of an insurer not a member of the same insurance holding company system, would be
otherwise contrary to law.
(c) A domestic insurer may not enter into transactions which are part of a plan or series
of like transactions with persons within the insurance holding company system if the purpose
of those separate transactions is to avoid the statutory threshold amount and thus avoid the
review that would occur otherwise. If the commissioner determines that the separate
transactions were entered into over any 12-month period for the purpose, the commissioner
may exercise the authority under section 60D.25.
(d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
whether the transactions comply with the standards set forth in paragraph (a), and whether
they may adversely affect the interests of policyholders.
(e) The commissioner shall be notified within 30 days of any investment of the domestic
insurer in any one corporation if the total investment in the corporation by the insurance
holding company system exceeds ten percent of the corporation's voting securities.
new text begin
(f) An affiliate that is party to an agreement or contract with a domestic insurer that is
subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
conservatorship, or receivership proceedings against the insurer and to the authority of a
supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
obligations under the agreement or contract to perform services for the insurer that are: (1)
an integral part of the insurer's operations, including but not limited to management,
administrative, accounting, data processing, marketing, underwriting, claims handling,
investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
the insurer's obligations under insurance policies. The commissioner may require that an
agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
under this paragraph.
new text end
Sec. 16.
Minnesota Statutes 2024, section 60D.217, is amended to read:
60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
INSURANCE GROUPS.
(a) The commissioner is authorized to act as the groupwide supervisor for any
internationally active insurance group in accordance with the provisions of this section.
However, the commissioner may otherwise acknowledge another regulatory official as the
groupwide supervisor where the internationally active insurance group:
(1) does not have substantial insurance operations in the United States;
(2) has substantial insurance operations in the United States, but not in this state; or
(3) has substantial insurance operations in the United States and this state, but the
commissioner has determined pursuant to the factors set forth in deleted text begin subsectionsdeleted text end new text begin paragraphsnew text end (b)
and (f) that the other regulatory official is the appropriate groupwide supervisor.
An insurance holding company system that does not otherwise qualify as an internationally
active insurance group may request that the commissioner make a determination or
acknowledgment as to a groupwide supervisor pursuant to this section.
(b) In cooperation with other state, federal, and international regulatory agencies, the
commissioner deleted text begin willdeleted text end new text begin mustnew text end identify a single groupwide supervisor for an internationally active
insurance group. The commissioner may determine that the commissioner is the appropriate
groupwide supervisor for an internationally active insurance group that conducts substantial
insurance operations concentrated in this state. However, the commissioner may acknowledge
that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
for the internationally active insurance group. The commissioner shall consider the following
factors when making a determination or acknowledgment under this deleted text begin subsectiondeleted text end new text begin paragraphnew text end :
(1) the place of domicile of the insurers within the internationally active insurance group
that hold the largest share of the group's written premiums, assets, or liabilities;
(2) the place of domicile of the top-tiered deleted text begin insurer(s)deleted text end new text begin insurer or insurersnew text end in the insurance
holding company system of the internationally active insurance group;
(3) the location of the executive offices or largest operational offices of the internationally
active insurance group;
(4) whether another regulatory official is acting or is seeking to act as the groupwide
supervisor under a regulatory system that the commissioner determines to be:
(i) substantially similar to the system of regulation provided under the laws of this state;
or
(ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
analysis, and cooperation with other regulatory officials; and
(5) whether another regulatory official acting or seeking to act as the groupwide
supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
However, a commissioner identified under this section as the groupwide supervisor may
determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
supervisor. The acknowledgment of the groupwide supervisor shall be made after
consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
with and subject to the acknowledgment of other regulatory officials involved with
supervision of members of the internationally active insurance group, and in consultation
with the internationally active insurance group.
(c) Notwithstanding any other provision of law, when another regulatory official is acting
as the groupwide supervisor of an internationally active insurance group, the commissioner
shall acknowledge that regulatory official as the groupwide supervisor. However, in the
event of a material change in the internationally active insurance group that results in:
(1) the internationally active insurance group's insurers domiciled in this state holding
the largest share of the group's premiums, assets, or liabilities; or
(2) this state being the place of domicile of the top-tiered deleted text begin insurer(s)deleted text end new text begin insurer or insurersnew text end
in the insurance holding company system of the internationally active insurance group,
the commissioner shall make a determination or acknowledgment as to the appropriate
groupwide supervisor for such an internationally active insurance group pursuant to
deleted text begin subsectiondeleted text end new text begin paragraphnew text end (b).
(d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
insurer registered pursuant to section 60D.19 all information necessary to determine whether
the commissioner may act as the groupwide supervisor of an internationally active insurance
group or if the commissioner may acknowledge another regulatory official to act as the
groupwide supervisor. Prior to issuing a determination that an internationally active insurance
group is subject to groupwide supervision by the commissioner, the commissioner shall
notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
within the internationally active insurance group. The internationally active insurance group
shall have not less than 30 days to provide the commissioner with additional information
pertinent to the pending determination. The commissioner shall publish in the State Register
and on the department's website the identity of internationally active insurance groups that
the commissioner has determined are subject to groupwide supervision by the commissioner.
(e) If the commissioner is the groupwide supervisor for an internationally active insurance
group, the commissioner is authorized to engage in any of the following groupwide
supervision activities:
(1) assess the enterprise risks within the internationally active insurance group to ensure
that:
(i) the material financial condition and liquidity risks to the members of the internationally
active insurance group that are engaged in the business of insurance are identified by
management; and
(ii) reasonable and effective mitigation measures are in place; or
(2) request, from any member of an internationally active insurance group subject to the
commissioner's supervision, information necessary and appropriate to assess enterprise risk,
including but not limited to information about the members of the internationally active
insurance group regarding:
(i) governance, risk assessment, and management;
(ii) capital adequacy; and
(iii) material intercompany transactions;
(3) coordinate and, through the authority of the regulatory officials of the jurisdictions
where members of the internationally active insurance group are domiciled, compel
development and implementation of reasonable measures designed to ensure that the
internationally active insurance group is able to timely recognize and mitigate enterprise
risks to members of deleted text begin suchdeleted text end new text begin thenew text end internationally active insurance group that are engaged in the
business of insurance;
(4) communicate with other state, federal and international regulatory agencies for
members within the internationally active insurance group and share relevant information
subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
set forth in section 60D.215 or otherwise;
(5) enter into agreements with or obtain documentation from any insurer registered under
section 60D.19, any member of the internationally active insurance group, and any other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, providing the basis for or otherwise clarifying the commissioner's role as
groupwide supervisor, including provisions for resolving disputes with other regulatory
officials. deleted text begin Suchdeleted text end Agreements or documentationnew text begin under this clausenew text end shall not serve as evidence
in any proceeding that any insurer or person within an insurance holding company system
not domiciled or incorporated in this state is doing business in this state or is otherwise
subject to jurisdiction in this state; and
(6) other groupwide supervision activities, consistent with the authorities and purposes
enumerated above, as considered necessary by the commissioner.
(f) If the commissioner acknowledges that another regulatory official from a jurisdiction
that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
authorized to reasonably cooperate, through supervisory colleges or otherwise, with
groupwide supervision undertaken by the groupwide supervisor, provided that:
(1) the commissioner's cooperation is in compliance with the laws of this state; and
(2) the regulatory official acknowledged as the groupwide supervisor also recognizes
and cooperates with the commissioner's activities as a groupwide supervisor for other
internationally active insurance groups where applicable. Where deleted text begin suchdeleted text end recognition and
cooperationnew text begin by the groupwide supervisornew text end is not reasonably reciprocal, the commissioner is
authorized to refuse recognition and cooperation.
(g) The commissioner is authorized to enter into agreements with or obtain documentation
from any insurer registered under section 60D.19, any affiliate of the insurer, and other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, that provide the basis for or otherwise clarify a regulatory official's role
as groupwide supervisor.
(h) A registered insurer subject to this section shall be liable for and shall pay the
reasonable expenses of the commissioner's participation in the administration of this section,
including the engagement of attorneys, actuaries, and any other professionals and all
reasonable travel expenses.
Sec. 17.
Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:
Subdivision 1.
Classification protection and use of information by commissioner.
new text begin (a)
new text end Documents, materials, or other information in the possession or control of the department
that are obtained by or disclosed to the commissioner or any other person in the course of
an examination or investigation made pursuant to section 60D.21 and all information reported
pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
(e); 60D.18; 60D.19; deleted text begin anddeleted text end 60D.20deleted text begin ,deleted text end new text begin ; and 60D.217,new text end are classified as confidential or protected
nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
in evidence in a private civil action. However, the commissioner may use the documents,
materials, or other information in the furtherance of any regulatory or legal action brought
as a part of the commissioner's official duties. The commissioner shall not otherwise make
the documents, materials, or other information public without the prior written consent of
the insurer to which it pertains unless the commissioner, after giving the insurer and its
affiliates who would be affected by this action notice and opportunity to be heard, determines
that the interest of policyholders, shareholders, or the public deleted text begin will bedeleted text end new text begin isnew text end served by the
publication of it, in which event the commissioner may publish all or any part in the manner
the commissioner deems appropriate.
new text begin
(b) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
the group capital calculation and group capital ratio produced within the calculation and
any group capital information received from an insurance holding company supervised by
the Federal Reserve Board or any United States groupwide supervisor.
new text end
new text begin
(c) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
the liquidity stress test results and supporting disclosures and any liquidity stress test
information received from an insurance holding company supervised by the Federal Reserve
Board and non-United States groupwide supervisors.
new text end
Sec. 18.
Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:
Subd. 3.
Sharing of information.
In order to assist in the performance of the
commissioner's duties, the commissioner:
(1) may share documents, materials, or other information, including the confidential,
protected nonpublic, and privileged documents, materials, or information subject to this
section,new text begin including proprietary and trade secret documents and materials,new text end withnew text begin : (i)new text end other state,
federal, and international regulatory agenciesdeleted text begin , withdeleted text end new text begin ; (ii)new text end the NAIC deleted text begin and its affiliates and
subsidiaries,deleted text end new text begin ; (iii) any third-party consultants designated by the commissioner;new text end and deleted text begin withdeleted text end new text begin
(iv)new text end state, federal, and international law enforcement authorities, including members of any
supervisory college described in section 60D.215, provided that the recipient agrees in
writing to maintain the confidentiality and privileged status of the document, material, or
other information, and has verified in writing the legal authority to maintain confidentiality;
(2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
privileged documents, materials, or information reported pursuant to section 60D.19new text begin ,
subdivision 11a,new text end with commissioners of states having statutes or regulations substantially
similar to subdivision 1 and who have agreed in writing not to disclose this information;
(3) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information from the NAIC and deleted text begin itsdeleted text end new text begin the NAIC'snew text end
affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
privileged any document, material, or information received with notice or the understanding
that it is confidential or privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and
(4) shall enter into written agreements with the NAICnew text begin and a third-party consultant
designated by the commissionernew text end governing sharing and use of information provided pursuant
to sections 60D.15 to 60D.29 consistent with this clause that shall:
(i) specify procedures and protocols regarding the confidentiality and security of
information shared with the NAIC deleted text begin and its affiliates and subsidiariesdeleted text end new text begin or a third-party consultant
designated by the commissionernew text end pursuant to sections 60D.15 to 60D.29, including procedures
and protocols for sharing by the NAIC with other state, federal, or international regulatorsnew text begin .
The agreement must provide that the recipient agrees in writing to maintain the confidentiality
and privileged status of the documents, materials, or other information, and has verified in
writing the legal authority to maintain confidentialitynew text end ;
(ii) specify that ownership of information shared with the NAIC deleted text begin and its affiliates and
subsidiariesdeleted text end new text begin or a third-party consultantnew text end pursuant to sections 60D.15 to 60D.29 remains with
the commissioner and the NAIC'snew text begin or a third-party consultant's, as designated by the
commissioner,new text end use of the information is subject to the direction of the commissioner;
new text begin
(iii) excluding documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
in a permanent database after the underlying analysis is completed;
new text end
deleted text begin (iii)deleted text end new text begin (iv)new text end require prompt notice to be given to an insurer whose confidential or protected
nonpublic information in the possession of the NAICnew text begin or a third-party consultant designated
by the commissionernew text end pursuant to sections 60D.15 to 60D.29 is subject to a request or
subpoena to the NAICnew text begin or a third-party consultant designated by the commissionernew text end for
disclosure or production; deleted text begin and
deleted text end
deleted text begin (iv)deleted text end new text begin (v)new text end require the NAIC deleted text begin and its affiliates and subsidiariesdeleted text end new text begin or a third-party consultant
designated by the commissionernew text end to consent to intervention by an insurer in any judicial or
administrative action in which the NAIC deleted text begin and its affiliates and subsidiariesdeleted text end new text begin or a third-party
consultant designated by the commissionernew text end may be required to disclose confidential or
protected nonpublic information about the insurer shared with the NAIC deleted text begin and its affiliates
and subsidiariesdeleted text end new text begin or a third-party consultant designated by the commissionernew text end pursuant to
sections 60D.15 to 60D.29deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(vi) for documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
notification of the identity of the consultant to the applicable insurers.
new text end
Sec. 19.
Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:
Subd. 6.
Classification protection and use by others.
Documents, materials, or other
information in the possession or control of the NAICnew text begin or a third-party consultant designated
by the commissionernew text end pursuant to sections 60D.15 to 60D.29 are confidential, protected
nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
admissible in evidence in a private civil action.
Sec. 20.
Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
read:
new text begin Subd. 7. new text end
new text begin Certain disclosures or publication prohibited. new text end
new text begin
(a) The group capital calculation
and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
liquidity stress test along with the liquidity stress test's results and supporting disclosures
required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
and capital adequacy and group liquidity risks, respectively, and are not intended as a means
to rank insurers or insurance holding company systems generally.
new text end
new text begin
(b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
disseminating, circulating, or placing before the public, or causing directly or indirectly to
be made, published, disseminated, circulated, or placed before the public in a newspaper,
magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
or over any radio, television station, or any electronic means of communication available
to the public, or in any other way as an advertisement, announcement, or statement containing
a representation or statement with regard to the group capital calculation, group capital ratio,
the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
insurer or any insurer group, or of any component derived in the calculation by any insurer,
broker, or other person engaged in any manner in the insurance business is misleading and
is prohibited.
new text end
new text begin
(c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
publication if any materially false statement with respect to the group capital calculation,
resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
insurance group's group capital calculation or resulting group capital ratio, liquidity stress
test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
of any amount to an insurer's or insurance group's liquidity stress test result or supporting
disclosures is published in any written publication and the insurer is able to demonstrate to
the commissioner with substantial proof the statement's falsity or inappropriateness. The
sole purpose of an announcement under this paragraph must be to rebut the materially false
statement.
new text end
Sec. 21.
Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:
Subd. 2.
Voting of securities; when prohibited.
No security that is the subject of any
agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
contravention of the provisions of this chapter or of any rule or order issued by the
commissioner may be voted at any shareholder's meeting, or may be counted for quorum
purposes, and any action of shareholders requiring the affirmative vote of a percentage of
shares may be taken as though the securities were not issued and outstanding. No action
taken at the meeting shall be invalidated by the voting of the securities, unless the action
would materially affect control of the insurer or unless the courts of this state have so
ordered. If an insurer or the commissioner has reason to believe that any security of the
insurer has been or is about to be acquired in contravention of the provisions of this chapter
or of any rule or order issued by the commissioner, the insurer or the commissioner may
apply to the district court for the county in which the insurer has its principal place of
business to enjoin any offer, request, invitation, agreement, or acquisition made in
contravention of section deleted text begin 60D.16deleted text end new text begin 60D.17new text end or any rule or order issued by the commissioner
to enjoin the voting of any security so acquired, to void any vote of the security already cast
at any meeting of shareholders and for other equitable relief as the nature of the case and
the interest of the insurer's policyholders or the public requires.
Sec. 22.
Minnesota Statutes 2024, section 60D.25, is amended to read:
60D.25 RECEIVERSHIP.
Whenever it appears to the commissioner that any person has committed a violation of
this chapter that so impairs the financial condition of a domestic insurer as to threaten
insolvency or make the further transaction of business by it hazardous to its policyholdersnew text begin ,
creditors, shareholders,new text end or the public, deleted text begin thendeleted text end the commissioner may proceed as provided in
chapter 60B to take possessions of the property of the domestic insurer and to conduct the
business of deleted text begin thatdeleted text end new text begin the domesticnew text end insurer.
ARTICLE 6
MINNESOTA BUSINESS CORPORATIONS ACT
Section 1.
Minnesota Statutes 2024, section 302A.011, subdivision 41, is amended to
read:
Subd. 41.
Beneficial owner; beneficial ownership.
(a) "Beneficial owner," when used
with respect to shares or other securities, includes, but is not limited to, any person who,
directly or indirectly through any written or oral agreement, arrangement, relationship,
understanding, or otherwise, has or shares the power to vote, or direct the voting of, the
shares or securities or has or shares the power to dispose of, or direct the disposition of, the
shares or securities, except that:
(1) a person shall not be deemed the beneficial owner of shares or securities tendered
pursuant to a tender or exchange offer made by the person or any of the person's affiliates
or associates until the tendered shares or securities are accepted for purchase or exchange;
and
(2) a person shall not be deemed the beneficial owner of shares or securities with respect
to which the person has the power to vote or direct the voting arising solely from a revocable
proxy given in response to a proxy solicitation required to be made and made in accordance
with the applicable rules and regulations under the Securities Exchange Act of 1934 and is
not then reportable under that act on a Schedule 13D or comparable report, or, if the
corporation is not subject to the rules and regulations under the Securities Exchange Act of
1934, would have been required to be made and would not have been reportable if the
corporation had been subject to the rules and regulations.
(b) "Beneficial ownership" includes, but is not limited to, the right to acquire shares or
securities through the exercise of options, warrants, or rights, or the conversion of convertible
securities, or otherwise. The shares or securities subject to the options, warrants, rights, or
conversion privileges held by a person shall be deemed to be outstanding for the purpose
of computing the percentage of outstanding shares or securities of the class or series owned
by the person, but shall not be deemed to be outstanding for the purpose of computing the
percentage of the class or series owned by any other person. A person deleted text begin shall bedeleted text end new text begin isnew text end deemed
the beneficial owner of shares and securities beneficially owned bynew text begin : (1)new text end any relative or
spouse of the person or any relative of the spouse, residing in the home of the persondeleted text begin ,deleted text end new text begin ; (2)new text end
any trust or estate in which the personnew text begin (i)new text end owns ten percent or more of the total beneficial
interestnew text begin of the trust or estatenew text end new text begin ,new text end ornew text begin (ii)new text end serves as trustee or executor or in a similar fiduciary
capacitydeleted text begin ,deleted text end new text begin for the trust or estate; (3)new text end any organization in which the person owns ten percent
or more of the equitydeleted text begin ,deleted text end new text begin ;new text end andnew text begin (4)new text end any affiliate of the person.
(c) When two or more persons act or agree to act as a partnership, limited partnership,
syndicate, or other group for the purposes of acquiring, owning, or voting shares or other
securities of a corporation, all members of the partnership, syndicate, or other group are
deemed to constitute a "person" and to have acquired beneficial ownership, as of the date
they first so act or agree to act together, of all shares or securities of the corporation
beneficially owned by the person.
Sec. 2.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 72. new text end
new text begin Defective corporate act. new text end
new text begin
"Defective corporate act" means an overissue, an
election or appointment of directors that is void or voidable due to a failure of authorization,
or an act or transaction purportedly taken by or on behalf of the corporation that is and, at
the time the act or transaction was purportedly taken, would have been within the
corporation's power under section 302A.101 but is void or voidable due to a failure of
authorization.
new text end
Sec. 3.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 73. new text end
new text begin Emergency. new text end
new text begin
"Emergency" means a situation during which it is impracticable
for the corporation to conduct the corporation's affairs in accordance with this chapter, the
articles, the bylaws, or as specified in a notice for the meeting previously given as a result
of a catastrophic event or condition, including but not limited to an act of nature, an epidemic
or pandemic, a technological failure or malfunction, a terrorist incident or an act of war, a
cyber attack, a civil disturbance, or a governmental authority's emergency declaration.
new text end
Sec. 4.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 74. new text end
new text begin Failure of authorization. new text end
new text begin
"Failure of authorization" means the failure: (1) to
authorize or effect an act or transaction in compliance with (i) this chapter, (ii) the articles
or bylaws, (iii) any plan or agreement to which the corporation is a party, or (iv) the
disclosure set forth in any proxy or consent solicitation statement, if and to the extent the
failure renders the act or transaction void or voidable; or (2) of the board or an officer to
authorize or approve an act or transaction taken by or on behalf of the corporation that
requires board or officer approval for the act or transaction's due authorization.
new text end
Sec. 5.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 75. new text end
new text begin Overissue. new text end
new text begin
"Overissue" means the purported issuance of: (1) shares of a class
or series in excess of the number of shares of the class or series the corporation has the
power under the articles to issue under section 302A.401, subdivision 1, at the time of the
issuance; or (2) shares of any class or series that are not then authorized for issuance by the
articles.
new text end
Sec. 6.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 76. new text end
new text begin Putative shares. new text end
new text begin
"Putative shares" means shares, including shares issued upon
exercise of rights to purchase, in each case, that were created or issued pursuant to a defective
corporate act, that: (1) but for a failure of authorization, would constitute valid shares; or
(2) the board is unable to determine are valid shares.
new text end
Sec. 7.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 77. new text end
new text begin Time of defective corporate act. new text end
new text begin
"Time of defective corporate act" means
the date and time at which the defective corporate act was purportedly taken.
new text end
Sec. 8.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 78. new text end
new text begin Validation effective time. new text end
new text begin
"Validation effective time," with respect to a
defective corporate act ratified under section 302A.166 or 302A.167, means the latest of:
new text end
new text begin
(1) the time when a defective corporate act submitted to shareholders for approval under
section 302A.166, subdivision 4, is approved by shareholders or, if no vote of the
shareholders is required to approve the ratification of the defective corporate act, immediately
following the time when the board adopts the resolutions required under section 302A.166,
subdivision 2 or 3;
new text end
new text begin
(2) if no certificate of validation must be filed under section 302A.166, subdivision 6,
the time, if any, specified by the board of directors in the resolutions adopted under section
302A.166, subdivision 2 or 3, provided the time specified by the board of directors does
not precede the time when the resolutions are adopted; or
new text end
new text begin
(3) the time when any certificate of validation filed under section 302A.166, subdivision
6, is filed with the secretary of state.
new text end
Sec. 9.
Minnesota Statutes 2024, section 302A.011, is amended by adding a subdivision
to read:
new text begin Subd. 79. new text end
new text begin Valid shares. new text end
new text begin
"Valid shares" means shares that have been duly authorized
and validly issued as required under this chapter.
new text end
Sec. 10.
Minnesota Statutes 2024, section 302A.111, subdivision 2, is amended to read:
Subd. 2.
Statutory provisions that may be modified only in articles or in a
shareholder control agreement.
The following provisions govern a corporation unless
modified in the articles or in a shareholder control agreement under section 302A.457:
(a) a corporation has general business purposes (section 302A.101);
(b) a corporation has perpetual existence and certain powers (section 302A.161);
(c) the power to adopt, amend, or repeal the bylaws is vested in the board (section
302A.181);
(d) a corporation must allow cumulative voting for directors (section 302A.215,
subdivision 2);
(e) the affirmative vote of a majority of directors present is required for an action of the
board (section 302A.237);
(f) a written action by the board taken without a meeting must be signed by all directors
(section 302A.239);
(g) the board may authorize the issuance of securities and rights to purchase securities
(section 302A.401, subdivision 1);
(h) all shares are common shares entitled to vote and are of one class and one series
(section 302A.401, subdivision 2, clauses (a) and (b));
(i) all shares have equal rights and preferences in all matters not otherwise provided for
by the board (section 302A.401, subdivision 2, clause (b));
(j) the par value of shares is fixed at one cent per share for certain purposes and may be
fixed by the board for certain other purposes (section 302A.401, subdivision 2, clause (c));
(k) the board or the shareholders may issue shares for any consideration or for no
consideration to effectuate share dividends, divisions, or combinations, and determine the
value of nonmonetary consideration (section 302A.405, subdivision 1);
(l) shares of a class or series must not be issued to holders of shares of another class or
series to effectuate share dividends, divisions, or combinations, unless authorized by a
majority of the voting power of the shares of the same class or series as the shares to be
issued (section 302A.405, subdivision 1);
(m) a corporation may issue rights to purchase securities whose terms, provisions, and
conditions are fixed by the board (section 302A.409);
(n) a shareholder has certain preemptive rights, unless otherwise provided by the board
(section 302A.413);
(o) the affirmative vote of the holders of a majority of the voting power of the shares
present and entitled to vote at a duly held meeting is required for an action of the
shareholders, except where this chapter requires the affirmative vote of a plurality of the
votes cast (section 302A.215, subdivision 1) or a majority of the voting power of all shares
entitled to vote (section 302A.437, subdivision 1);
(p) shares of a corporation acquired by the corporation may be reissued (section
302A.553, subdivision 1);
(q) each share has one vote unless otherwise provided in the terms of the share (section
302A.445, subdivision 3);
(r) a corporation may issue shares for a consideration less than the par value, if any, of
the shares (section 302A.405, subdivision 2);
(s) the board may effect share dividends, divisions, and combinations under certain
circumstances without shareholder approval (section 302A.402);
(t) a written action of shareholders must be signed by all shareholders (section 302A.441);
(u) specified amendments of the articles create dissenters' rights (section 302A.471,
subdivision 1, clause (a)); deleted text begin and
deleted text end
(v) shareholders are entitled to vote as a class or series upon proposed amendments to
the articles in specified circumstances (section 302A.137)deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(w) the corporation's business and affairs must be managed by or under the board's
direction (section 302A.201).
new text end
Sec. 11.
Minnesota Statutes 2024, section 302A.161, is amended by adding a subdivision
to read:
new text begin Subd. 23a. new text end
new text begin Emergency powers. new text end
new text begin
(a) During an emergency, unless emergency bylaws
provide otherwise:
new text end
new text begin
(1) notice of a meeting of the board must be given only to the directors that are practicable
to reach and may, if ordinary notice is impracticable or inadvisable due to the emergency,
be given in any practicable manner; and
new text end
new text begin
(2) the officers designated on a list approved by the board of directors before the
emergency, in the priority order and subject to conditions as may be provided in the board
resolution approving the list, must, to the extent required to provide a quorum at any meeting
of the board, be deemed directors for the meeting.
new text end
new text begin
(b) During an emergency that makes it impracticable to convene a meeting of shareholders
in accordance with this chapter, the articles, the bylaws, or as specified in a notice for the
meeting previously given, unless emergency bylaws provide otherwise, the board may
postpone a meeting of shareholders for which notice has been given or authorize shareholders
to participate in a meeting by any means of remote communication that conforms with
section 302A.436. The corporation must give notice to shareholders, by the means and with
shorter advance notice as are reasonable in the circumstances, of a postponement, including
any new date, time, or place, and describe any means of remote communication to be used.
The notice to shareholders by a publicly held corporation may be given solely by means of
a document publicly filed by the corporation with the Securities and Exchange Commission
pursuant to the rules and regulations under the Securities Exchange Act of 1934, United
States Code, title 15, section 78a, et seq.
new text end
new text begin
(c) A corporate action taken in good faith under this subdivision during an emergency
to further the business and affairs of the corporation binds the corporation.
new text end
Sec. 12.
new text begin
[302A.166] DEFECTIVE CORPORATE ACTS AND SHARES;
RATIFICATION.
new text end
new text begin Subdivision 1. new text end
new text begin Effect of ratification or validation. new text end
new text begin
Subject to subdivision 7, a defective
corporate act or putative share is not void or voidable solely as a result of a failure of
authorization if the defective corporate act or putative share is ratified under this section or
validated by a court in a proceeding brought under section 302A.167.
new text end
new text begin Subd. 2. new text end
new text begin Board approval; generally. new text end
new text begin
(a) In order to ratify one or more defective corporate
acts under this section other than ratifying an election of the first board under subdivision
3, the board must adopt resolutions stating:
new text end
new text begin
(1) the defective corporate act or acts to be ratified;
new text end
new text begin
(2) the date of each defective corporate act or acts;
new text end
new text begin
(3) if the defective corporate act or acts involved the issuance of putative shares, the
number and type of putative shares issued and the date or dates upon which the putative
shares were purported to have been issued;
new text end
new text begin
(4) the nature of the failure of authorization in respect of each defective corporate act
to be ratified; and
new text end
new text begin
(5) that the board approves ratification of the defective corporate act or acts.
new text end
new text begin
(b) The resolutions also may provide that, at any time before the validation effective
time in respect of a defective corporate act set forth in the resolutions, notwithstanding the
approval of the ratification of the defective corporate act by shareholders, the board may
abandon the ratification of the defective corporate act without further action of the
shareholders.
new text end
new text begin
(c) The quorum and voting requirements that apply to the board's ratification of any
defective corporate act must be the quorum and voting requirements applicable to the type
of defective corporate act proposed to be ratified at the time the board adopts the resolutions
ratifying the defective corporate act. If the articles or bylaws, any plan or agreement to
which the corporation was a party, or any provision of this chapter, in each case as in effect
as of the time of the defective corporate act, require a larger number or portion of directors
or of specified directors for a quorum to be present or to approve the defective corporate
act, the larger number or portion of the directors or the specified directors must be required
for a quorum to be present or to adopt the resolutions to ratify the defective corporate act,
as applicable; except that the presence or approval of a director elected, appointed, or
nominated by holders of any class or series of which no shares are outstanding at the time
the board adopts the resolutions ratifying the defective corporate act, or by any person that
is no longer a shareholder at the time the board adopts the resolutions ratifying the defective
corporate act, is not required.
new text end
new text begin Subd. 3. new text end
new text begin Board approval; election of first board. new text end
new text begin
To ratify a defective corporate act
in respect of the election of the first board under section 302A.201, subdivision 1, a majority
of the persons who, at the time the resolutions required by this subdivision are adopted, are
exercising the powers of directors under claim and color of an election or appointment as
such may adopt resolutions stating:
new text end
new text begin
(1) the name of the person or persons who first took action in the name of the corporation
as the first board;
new text end
new text begin
(2) the earlier of the date on which the persons first took the action or were purported
to have been elected as the first board; and
new text end
new text begin
(3) that the ratification of the election of the person or persons as the first board is
approved.
new text end
new text begin Subd. 4. new text end
new text begin Shareholder approval; when required. new text end
new text begin
A defective corporate act ratified
under subdivision 2 must be submitted to shareholders for approval under subdivision 5,
unless:
new text end
new text begin
(1)(i) no other provision of this chapter, and no provision of the articles or bylaws, or
of any plan or agreement to which the corporation is a party, requires shareholder approval
of the defective corporate act to be ratified, either at the time of the defective corporate act
or at the time the board adopts the resolutions ratifying the defective corporate act under
subdivision 2, and (ii) the defective corporate act did not result from a failure to comply
with section 302A.673; or
new text end
new text begin
(2) as of the adoption of the resolutions of the board under subdivision 2, there are no
valid shares outstanding and entitled to vote thereon, regardless of whether there then exist
any putative shares.
new text end
new text begin Subd. 5. new text end
new text begin Shareholder approval; process. new text end
new text begin
(a) If the ratification of a defective corporate
act must be submitted to shareholders for approval under subdivision 4, notice of the meeting
must be given in the manner set forth in section 302A.435 to each holder of valid shares
and putative shares, whether voting or nonvoting.
new text end
new text begin
(b) The notice under this subdivision must be given as follows:
new text end
new text begin
(1) in the case of a defective corporate act that did not involve the establishment of a
record date for notice of or voting at any meeting of shareholders, for written action of
shareholders in lieu of a meeting, or for any other purpose, to the shareholders of valid
shares and putative shares, whether voting or nonvoting, as of the time of the defective
corporate act, other than holders whose identities or addresses cannot be determined from
the corporation's records; or
new text end
new text begin
(2) in the case of a defective corporate act that involved the establishment of a record
date for notice of or voting at any meeting of shareholders, for written action of shareholders
in lieu of a meeting, or for any other purpose, to the shareholders of valid shares and putative
shares, whether voting or nonvoting, as of the record date for notice of or voting at the
meeting, the record date for written action, or the record date for the other action, as the
case may be, other than holders whose identities or addresses cannot be determined from
the corporation's records.
new text end
new text begin
(c) The notice must contain a copy of the resolutions adopted by the board under
subdivision 2 or the information required by subdivision 2, paragraph (a), clauses (1) to (5).
The notice must include a statement that any claim that the defective corporate act or putative
shares ratified under this section is void or voidable due to the failure of authorization, or
that a court should declare in the court's discretion that a ratification in accordance with this
section is not effective or is effective only on certain conditions, must be brought within
120 days from the applicable validation effective time.
new text end
new text begin
(d) At the meeting, the quorum and voting requirements that apply to ratification of the
defective corporate act must be the same quorum and voting requirements that apply to the
type of defective corporate act proposed to be ratified at the time of the approval of the
ratification, except that:
new text end
new text begin
(1) if the articles or bylaws, a plan or agreement to which the corporation was a party,
or a provision under this chapter in effect as of the time of the defective corporate act requires
a larger number or portion of shares or of any class or series thereof or of specified
shareholders for a quorum to be present or to approve the defective corporate act, the presence
or approval of the larger number or portion of stock or of the class or series thereof or of
the specified shareholders must be required for a quorum to be present or to approve the
ratification of the defective corporate act, as applicable; except that the presence or approval
of shares of any class or series of which no shares are outstanding at the time of the approval
of the ratification, or of any person that is no longer a shareholder at the time of the approval
of the ratification, is not required; and
new text end
new text begin
(2) the approval by shareholders of the ratification of a director's election requires the
affirmative vote of a plurality of shares present at the meeting and entitled to vote on the
election of the director in the manner set forth in section 302A.215, except that, if the articles
or bylaws then in effect or in effect at the time of the defective election require or required
a larger number or portion of shares or of any class or series thereof or of specified
shareholders to elect the director, the affirmative vote of the larger number or portion of
shares or of any class or series thereof or of the specified shareholders must be required to
ratify the election of the director; except that the presence or approval of shares of any class
or series of which no shares are outstanding at the time of the approval of the ratification,
or of any person that is no longer a shareholder at the time of the approval of the ratification,
is not required.
new text end
new text begin
(e) Putative shares, measured as of the adoption by the board of resolutions under
subdivision 2 and without giving effect to any ratification that becomes effective after the
adoption, are neither entitled to vote nor counted for quorum purposes in a vote to ratify a
defective corporate act.
new text end
new text begin Subd. 6. new text end
new text begin Certificate of validation. new text end
new text begin
(a) If a defective corporate act ratified under this
section requires under any other section of this chapter a certificate to be filed with the
secretary of state, and either (1) the certificate requires any change to give effect to the
defective corporate act in accordance with this section, including a change to the date and
time of the effectiveness of the certificate, or (2) a certificate was not previously filed with
respect to the defective corporate act, the corporation must file with the secretary of state
a certificate of validation with respect to the defective corporate act in lieu of filing the
certificate otherwise required by this chapter.
new text end
new text begin
(b) A separate certificate of validation is required for each defective corporate act that
requires the filing of a certificate of validation under this section, except that (1) two or
more defective corporate acts may be included in a single certificate of validation if the
corporation filed with the secretary of state, or to comply with this chapter would have filed
with the secretary of state, a single certificate under another provision of this chapter to
effect the acts, and (2) two or more overissues of shares, or of any class or series of shares,
may be included in a single certificate of validation; provided that the increase in the number
of authorized shares, or of each class or series, set forth in the certificate of validation is
effective on the date of the first overissue.
new text end
new text begin
(c) The certificate of validation must set forth:
new text end
new text begin
(1) that the corporation has ratified one or more defective corporate acts that would have
required filing with the secretary of state of a certificate under this chapter;
new text end
new text begin
(2) that each defective corporate act has been ratified in accordance with this section;
and
new text end
new text begin
(3) the following information:
new text end
new text begin
(i) if a certificate was previously filed with the secretary of state under this chapter with
respect to the defective corporate act and the certificate requires any change to give effect
to the defective corporate act in accordance with this section, including a change to the date
and time of the effectiveness of the certificate, the certificate of validation must set forth:
new text end
new text begin
(A) the name, title, and filing date of the certificate previously filed and any certificate
of correction to the certificate previously filed;
new text end
new text begin
(B) a statement that a certificate containing all of the information that must be included
under the applicable section or sections of this chapter to give effect to the defective corporate
act is attached as an exhibit to the certificate of validation; and
new text end
new text begin
(C) the date and time that the certificate is deemed effective pursuant to this section; or
new text end
new text begin
(ii) if a certificate was not previously filed with the secretary of state under this chapter
in respect of the defective corporate act and the defective corporate act ratified pursuant to
this section would have required under any other section of this chapter the filing with the
secretary of state of a certificate, the certificate of validation shall set forth:
new text end
new text begin
(A) a statement that a certificate containing all of the information required to be included
under the applicable section or sections of this chapter to give effect to the defective corporate
act is attached as an exhibit to the certificate of validation; and
new text end
new text begin
(B) the date and time that the certificate shall be deemed to have become effective
pursuant to this section.
new text end
new text begin
(d) A certificate attached to a certificate of validation need not be separately executed
and acknowledged and need not include a statement required by another section under this
chapter that the instrument has been approved and adopted in accordance with the provisions
of the other section under this chapter.
new text end
new text begin Subd. 7. new text end
new text begin Retroactive effect. new text end
new text begin
From and after the validation effective time, unless otherwise
determined in an action brought pursuant to section 302A.167, subject to subdivision 5,
paragraph (e):
new text end
new text begin
(1) each defective corporate act ratified in accordance with this section is no longer
deemed void or voidable as a result of the failure of authorization described in the resolutions
adopted under subdivision 2, effective retroactively from the time of the defective corporate
act; and
new text end
new text begin
(2) each share or fraction of a share of putative shares issued or purportedly issued
pursuant to the defective corporate act is no longer deemed void or voidable, and is deemed
to be an identical outstanding share or fraction of an outstanding share as of the time the
share or fraction of a share was purportedly issued.
new text end
new text begin Subd. 8. new text end
new text begin Postratification notice. new text end
new text begin
(a) Except as provided under paragraph (b), with respect
to each defective corporate act ratified by the board under subdivision 2 or subdivision 3,
prompt notice of the ratification must be given to all shareholders of valid shares and putative
shares, whether voting or nonvoting, as of the date the board adopts the resolutions approving
the defective corporate act, or as of a date within 60 days after the date of adoption, as
established by the board. The notice must be sent to the address of the holder as the address
appears or most recently appeared, as appropriate, on the corporation's records. The notice
must be given to the shareholders of valid shares and putative shares, whether voting or
nonvoting, as of the time of the defective corporate act, other than holders whose identities
or addresses cannot be determined from the records of the corporation. The notice must
contain a copy of the resolutions adopted under subdivision 2 or the information specified
under subdivision 2, paragraph (a), clauses (1) to (5), or subdivision 3, clauses (1) to (3),
as applicable, and a statement that any claim that the defective corporate act or putative
shares ratified under this section is void or voidable due to the failure of authorization, or
that a court should declare in the court's discretion that a ratification in accordance with this
section is not effective or is effective only on certain conditions, must be brought within
120 days from the latter of the validation effective time or the time at which the notice
required by this subdivision is given.
new text end
new text begin
(b) Notice is not required if notice of the ratification of the defective corporate act is
given in accordance with subdivision 5 and, in the case of a corporation that has a class of
shares listed on a national securities exchange, the notice required by this subdivision and
subdivision 5 may be deemed given if disclosed in a document publicly filed by the
corporation with the Securities and Exchange Commission pursuant to section 13, 14, or
15(d) of the Securities Exchange Act of 1934, as amended, United States Code, title 15,
section 78a, et seq., and rules and regulations promulgated under the Securities Exchange
Act of 1934, as amended, or the corresponding provisions of any subsequent United States
securities laws, rules, or regulations.
new text end
new text begin
(c) If a defective corporate act has been approved by shareholders acting pursuant to
section 302A.441, the notice required by this subdivision may be included in a notice
required under section 302A.441, subdivision 3. If the notice is given under section
302A.441, the notice must be sent to the shareholders entitled to the notice under section
302A.441, subdivision 3, and to all holders of valid shares and putative shares to whom
notice is required under this subdivision if the defective corporate act had been approved
at a meeting and the record date for determining the shareholders entitled to notice of the
meeting had been the date for determining the shareholders entitled to notice under paragraph
(a) other than any shareholder who approved the written action in lieu of a meeting under
section 302A.441 or any holder of putative shares who otherwise consented thereto in
writing.
new text end
new text begin
(d) For purposes of this subdivision and subdivision 5 only, notice to holders of putative
shares, and notice to holders of valid shares and putative shares as of the time of the defective
corporate act, is treated as notice to holders of valid shares for purposes of sections 302A.435
and 302A.441.
new text end
Sec. 13.
new text begin
[302A.167] VALIDITY OF DEFECTIVE CORPORATE ACTS AND
SHARES; PROCEEDINGS.
new text end
new text begin Subdivision 1. new text end
new text begin When permitted. new text end
new text begin
Subject to subdivision 5, upon application by the
corporation, a successor entity to the corporation, a member of the board, a shareholder or
beneficial owner of valid shares or putative shares, a shareholder or beneficial owner of
valid shares or putative shares as of the time of a defective corporate act ratified pursuant
to section 302A.166, or other person claiming to be substantially and adversely affected by
a ratification pursuant to section 302A.166, a court may:
new text end
new text begin
(1) determine the validity and effectiveness of any defective corporate act ratified pursuant
to section 302A.166;
new text end
new text begin
(2) determine the validity and effectiveness of the ratification of any defective corporate
act pursuant to section 302A.166;
new text end
new text begin
(3) determine the validity and effectiveness of any defective corporate act not ratified
or not ratified effectively pursuant to section 302A.166;
new text end
new text begin
(4) determine the validity of any corporate act or transaction and any shares or rights to
purchase; and
new text end
new text begin
(5) modify or waive any of the procedures set forth in section 302A.166 to ratify a
defective corporate act.
new text end
new text begin Subd. 2. new text end
new text begin Remedies. new text end
new text begin
In connection with an action under this section, a court may:
new text end
new text begin
(1) declare that a ratification under section 302A.166 is not effective or is only effective
at a time or upon conditions established by the court;
new text end
new text begin
(2) validate and declare effective a defective corporate act or putative shares and impose
conditions upon the court's validation;
new text end
new text begin
(3) require measures to remedy or avoid harm to a person substantially and adversely
affected by a ratification under section 302A.166 or from a court order pursuant to this
section, excluding harm that would have resulted if the defective corporate act had been
valid when approved or effectuated;
new text end
new text begin
(4) order the secretary of state to accept an instrument for filing with an effective time
specified by the court, which may be before or after the time of the order, provided that the
filing date of the instrument must be determined in accordance with section 302A.011,
subdivision 11;
new text end
new text begin
(5) approve a share register for the corporation that includes any shares ratified or
validated in accordance with this section or section 302A.166;
new text end
new text begin
(6) declare that putative shares are valid shares or require a corporation to issue and
deliver valid shares in place of any putative shares;
new text end
new text begin
(7) order a meeting of holders of valid shares or putative shares and determine the right
and power of persons claiming to hold valid shares or putative shares to vote at the ordered
meeting;
new text end
new text begin
(8) declare that a defective corporate act validated by a court is effective as of the time
of the defective corporate act or at another time the court may determine;
new text end
new text begin
(9) declare that putative shares validated by a court shall be deemed to be an identical
share or fraction of a valid share as of the time originally issued or purportedly issued or at
such other time as the court may determine; and
new text end
new text begin
(10) make other orders regarding matters as the court deems proper under the
circumstances.
new text end
new text begin Subd. 3. new text end
new text begin Service. new text end
new text begin
Service of the application under subdivision 1 upon the registered
agent of the corporation is deemed to be service upon the corporation, and no other party
needs to be joined in order for a court to adjudicate the matter. In an action filed by the
corporation, a court may require notice of the action be provided to other persons specified
by the court and permit the other persons to intervene in the action.
new text end
new text begin Subd. 4. new text end
new text begin Considerations. new text end
new text begin
In connection with resolving matters pursuant to subdivisions
1 and 2, a court may consider the following:
new text end
new text begin
(1) whether the defective corporate act was originally approved or effectuated with the
good faith belief that the approval or effectuation was in compliance with the provisions of
this chapter, the articles, or the bylaws;
new text end
new text begin
(2) whether the corporation and board have treated the defective corporate act as a valid
act or transaction and whether a person has acted in reliance on the public record that the
defective corporate act was valid;
new text end
new text begin
(3) whether any person may be or was harmed by the ratification or validation of the
defective corporate act, excluding harm that would have resulted if the defective corporate
act had been valid when approved or effectuated;
new text end
new text begin
(4) whether any person is harmed by the failure to ratify or validate the defective corporate
act; and
new text end
new text begin
(5) any other factors or considerations the court deems just and equitable.
new text end
new text begin Subd. 5. new text end
new text begin Statute of limitations. new text end
new text begin
An action asserting that (1) a defective corporate act or
putative shares ratified in accordance with section 302A.166 is void or voidable due to a
failure of authorization identified in the resolution adopted in accordance with section
302A.166, subdivision 2 or 3, or (2) a court should declare in its discretion that a ratification
in accordance with section 302A.166 not be effective or be effective only on certain
conditions, is prohibited from being brought after the expiration of 120 days from the later
of the validation effective time and the time notice, if any, that is required to be given
pursuant to section 302A.166, subdivision 8, is given with respect to the ratification; except
that this subdivision does not apply to an action asserting that a ratification was not
accomplished in accordance with section 302A.166 or to any person to whom notice of the
ratification was required to have been given pursuant to 302A.166, subdivision 5 or 8, but
to whom the notice was not given.
new text end
Sec. 14.
Minnesota Statutes 2024, section 302A.181, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Emergency bylaws. new text end
new text begin
(a) Unless the articles provide otherwise, bylaws may
contain provisions that are effective only during an emergency. The emergency bylaws may
contain provisions necessary to manage the corporation during the emergency, including:
new text end
new text begin
(1) procedures for calling a meeting of the board;
new text end
new text begin
(2) quorum requirements for the meeting;
new text end
new text begin
(3) designation of additional or substitute directors; and
new text end
new text begin
(4) procedures for the board to determine the duration of an emergency.
new text end
new text begin
(b) All provisions of the regular bylaws that are not inconsistent with the emergency
bylaws remain effective during the emergency.
new text end
new text begin
(c) Corporate action taken in good faith in accordance with the emergency bylaws binds
the corporation.
new text end
Sec. 15.
Minnesota Statutes 2024, section 302A.201, subdivision 1, is amended to read:
Subdivision 1.
Board to manage.
The business and affairs of a corporation shall be
managed by or under the direction of a board, subject to the provisions of subdivision 2 and
section 302A.457new text begin , and except as may be otherwise provided in the articles. If a provision
is made in the articles: (1) the powers and duties conferred or imposed upon the board of
directors by this chapter must be exercised or performed to the extent and by the natural
persons provided in the articles, (2) the directors have no duties, liabilities, or responsibilities
as directors under this chapter with respect to or arising from the exercise or performance
of, or from the failure to exercise or perform, the conferred or imposed powers and duties
by the other persons, and (3) the other persons have all of the duties, liabilities, and
responsibilities of directors under this chapter with respect to and arising from the exercise
or performance of, or the failure to exercise or perform, the conferred or imposed powers
and dutiesnew text end . The members of the first board may be named in the articles or elected by the
incorporators pursuant to section 302A.171 or by the shareholders.
Sec. 16.
Minnesota Statutes 2024, section 302A.237, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Agreements and other instruments; authorization. new text end
new text begin
When this chapter requires
the board to approve or to take other action with respect to an agreement, instrument, plan,
or document, the agreement, instrument, plan, or document may be approved by the board
in final form or in substantially final form. If the board acts to approve or take other action
with respect to an agreement, instrument, plan, or document that this chapter requires to be
filed with the secretary of state or referenced in any certificate filed, the board may, at any
time after providing the approval or taking other action and prior to the effectiveness of the
filing with the secretary of state, adopt a resolution ratifying the agreement, instrument,
plan, or document. The ratification under this subdivision is effective as of the time of the
original approval or other action by the board and to satisfy any requirement under this
chapter that the board approve or take other action with respect to the agreement, instrument,
plan, or document in a specific manner or sequence.
new text end
Sec. 17.
Minnesota Statutes 2024, section 302A.361, is amended to read:
302A.361 STANDARD OF CONDUCT.
new text begin Subdivision 1. new text end
new text begin Standard; liability. new text end
An officer shall discharge the duties of an office in
good faith, in a manner the officer reasonably believes to be in the best interests of the
corporation, and with the care an ordinarily prudent person in a like position would exercise
under similar circumstances. A person who so performs those duties is not liable by reason
of being or having been an officer of the corporation. A person exercising the principal
functions of an office or to whom some or all of the duties and powers of an office are
delegated pursuant to section 302A.351 is deemed an officer for purposes of this section
and sections 302A.467 and 302A.521.
new text begin Subd. 2. new text end
new text begin Liability; elimination or limitation. new text end
new text begin
The articles of a corporation may provide
that an officer's personal liability to the shareholders for monetary damages for breach,
during the time the corporation is a publicly held corporation, of fiduciary duty as an officer
may be eliminated or limited. The articles must not eliminate or limit the liability of an
officer:
new text end
new text begin
(1) for any breach of the officer's duty of loyalty to the corporation or the corporation's
shareholders;
new text end
new text begin
(2) for acts or omissions not in good faith or that involve intentional misconduct or a
knowing violation of law;
new text end
new text begin
(3) under section 80A.76;
new text end
new text begin
(4) for any transaction from which the officer derived an improper personal benefit;
new text end
new text begin
(5) in any action by or in the right of the corporation; or
new text end
new text begin
(6) for any act or omission occurring prior to the date when the provision in the articles
eliminating or limiting liability becomes effective.
new text end
Sec. 18.
Minnesota Statutes 2024, section 302A.461, subdivision 4, is amended to read:
Subd. 4.
Right to inspect.
(a) A shareholder, beneficial owner, or a holder of a voting
trust certificate of a corporation that is not a publicly held corporation has an absolute right,
upon written demand, to examine and copy, in person or by a legal representative, at any
reasonable time, and the corporation shall make available within ten days after receipt by
an officer of the corporation of the written demand:
(1) the share register; and
(2) all documents referred to in subdivision 2.
(b) A shareholder, beneficial owner, or a holder of a voting trust certificate of a
corporation that is not a publicly held corporation has a right, upon written demand, to
examine and copy, in person or by a legal representative, other corporate records at any
reasonable time only if the shareholder, beneficial owner, or holder of a voting trust certificate
demonstrates a proper purpose for the examination.
(c) A shareholder, beneficial owner, or a holder of a voting trust certificate of a publicly
held corporation has, upon written demand stating the purpose and acknowledged or verified
in the manner provided in chapter 358, a right at any reasonable time to examine and copy
the corporation's share register and other corporate records reasonably related to the stated
purpose and described with reasonable particularity in the written demand upon
demonstrating the stated purpose to be a proper purpose. The acknowledged or verified
demand must be directed to the corporation at its registered office in this state or at its
principal place of business.
(d) For purposes of this section, a "proper purpose" is one reasonably related to the
person's interest as a shareholder, beneficial owner, or holder of a voting trust certificate of
the corporation.
new text begin
(e) If a corporation or an officer or director of the corporation violates this section, a
court in Minnesota may, in an action brought by a shareholder, beneficial owner, or a holder
of a voting trust certificate of the corporation, specifically enforce this section and award
expenses, including attorney fees and disbursements, to the shareholder, beneficial owner,
or a holder of a voting trust certificate.
new text end
Sec. 19.
Minnesota Statutes 2024, section 302A.471, subdivision 1, is amended to read:
Subdivision 1.
Actions creating rights.
A shareholder of a corporation may dissent
from, and obtain payment for the fair value of the shareholder's shares in the event of, any
of the following corporate actions:
(a) unless otherwise provided in the articles, an amendment of the articles that materially
and adversely affects the rights or preferences of the shares of the dissenting shareholder
in that it:
(1) alters or abolishes a preferential right of the shares;
(2) creates, alters, or abolishes a right in respect of the redemption of the shares, including
a provision respecting a sinking fund for the redemption or repurchase of the shares;
(3) alters or abolishes a preemptive right of the holder of the shares to acquire shares,
securities other than shares, or rights to purchase shares or securities other than shares;
(4) excludes or limits the right of a shareholder to vote on a matter, or to cumulate votes,
except as the right may be excluded or limited through the authorization or issuance of
securities of an existing or new class or series with similar or different voting rights; except
that an amendment to the articles of an issuing public corporation that provides that section
302A.671 does not apply to a control share acquisition does not give rise to the right to
obtain payment under this section; deleted text begin or
deleted text end
(5) eliminates the right to obtain payment under this subdivision;new text begin or
new text end
new text begin
(6) pursuant to section 302A.201, subdivision 1, diminishes or abolishes the board's
right to manage, or to direct the management of, the corporation's business and affairs;
new text end
(b) a sale, lease, transfer, or other disposition of property and assets of the corporation
that requires shareholder approval under section 302A.661, subdivision 2, but not including
a disposition in dissolution described in section 302A.725, subdivision 2, or a disposition
pursuant to an order of a court, or a disposition for cash on terms requiring that all or
substantially all of the net proceeds of disposition be distributed to the shareholders in
accordance with their respective interests within one year after the date of disposition;
(c) a plan of merger, whether under this chapter or under chapter 322C, to which the
corporation is a constituent organization, except as provided in subdivision 3, and except
for a plan of merger adopted under section 302A.626;
(d) a plan of exchange, whether under this chapter or under chapter 322C, to which the
corporation is a party as the corporation whose shares will be acquired by the acquiring
organization, except as provided in subdivision 3;
(e) a plan of conversion is adopted by the corporation and becomes effective;
(f) an amendment of the articles in connection with a combination of a class or series
under section 302A.402 that reduces the number of shares of the class or series owned by
the shareholder to a fraction of a share if the corporation exercises its right to repurchase
the fractional share so created under section 302A.423; or
(g) any other corporate action taken pursuant to a shareholder vote with respect to which
the articles, the bylaws, or a resolution approved by the board directs that dissenting
shareholders may obtain payment for their shares.
Sec. 20.
Minnesota Statutes 2024, section 302A.471, subdivision 3, is amended to read:
Subd. 3.
Rights not to apply.
(a) Unless the articles, the bylaws, or a resolution approved
by the board otherwise provide, the right to obtain payment under this section does not
apply to a shareholder of (1) the surviving corporation in a merger with respect to shares
of the shareholder that are not entitled to be voted on the merger and are not canceled or
exchanged in the merger or (2) the corporation whose shares will be acquired by the acquiring
organization in a plan of exchange with respect to shares of the shareholder that are not
entitled to be voted on the plan of exchange and are not exchanged in the plan of exchange.
(b) If a date is fixed according to section 302A.445, subdivision 1, for the determination
of shareholders entitled to receive notice of and to vote on an action described in subdivision
1, only shareholders as of the date fixed, and beneficial owners as of the date fixed who
hold through shareholders, as provided in subdivision 2, may exercise dissenters' rights.
(c) Notwithstanding subdivision 1, the right to obtain payment under this section, other
than in connection with a plan of merger adopted under section 302A.613, subdivision 4,
or 302A.621, is limited in accordance with the following provisions:
(1) The right to obtain payment under this section is not available for the holders of
shares of any class or series of shares that is listed on deleted text begin the New York Stock Exchange, NYSE
MKT LLC, the Nasdaq Global Market, the NASDAQ Global Select Market, the Nasdaq
Capital Market, or any successor to any such marketdeleted text end new text begin any national securities exchange
registered with the United States Securities and Exchange Commission under Section 6 of
the Securities Exchange Act of 1934, United States Code, title new text end new text begin 15, section 78a, et seqnew text end .
(2) The applicability of clause (1) is determined as of:
(i) the record date fixed to determine the shareholders entitled to receive notice of, and
to vote at, the meeting of shareholders to act upon the corporate action described in
subdivision 1; or
(ii) the day before the effective date of corporate action described in subdivision 1 if
there is no meeting of shareholders.
(3) Clause (1) is not applicable, and the right to obtain payment under this section is
available pursuant to subdivision 1, for the holders of any class or series of shares who are
required by the terms of the corporate action described in subdivision 1 to accept for such
shares anything other than shares, or cash in lieu of fractional shares, of any class or any
series of shares of a domestic or foreign corporation, or any other ownership interest of any
other organization, that satisfies the standards set forth in clause (1) at the time the corporate
action becomes effective.
Sec. 21.
Minnesota Statutes 2024, section 302A.611, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Additional remedies; shareholder representatives. new text end
new text begin
A plan of merger or
exchange may provide:
new text end
new text begin
(1) that: (i) a party to the plan that fails to perform the party's obligations under the plan
in accordance with the terms and conditions of the plan, or that otherwise fails to comply
with the terms and conditions of the plan, in each case required to be performed or complied
with prior to the time the merger or exchange becomes effective, or that otherwise fails to
consummate, or fails to cause the consummation of, the merger or exchange, whether prior
to a specified date, upon satisfaction or, to the extent permitted by law, waiver of all
conditions to consummation set forth in the plan or otherwise, is subject, in addition to any
other remedies available at law or in equity, to penalties or consequences set forth in the
plan of merger or exchange, which may include an obligation to pay to the other party or
parties to the plan an amount representing or based on the loss of any premium or other
economic entitlement the shareholders or holders of rights to purchase of the other party
would be entitled to receive pursuant to the terms of the plan if the merger or exchange
were consummated in accordance with the terms of the plan; and (ii) if, pursuant to the
terms of the plan of merger or exchange, the corporation is entitled to receive payment from
another party to the plan of any amount representing a penalty or consequence, the
corporation is entitled to enforce the other party's payment obligation and upon receipt of
a payment is entitled to retain the amount of the payment received; or
new text end
new text begin
(2)(i) for the appointment, at or after the time at which the plan of merger or exchange
is approved by the shareholders of the corporation in accordance with the requirements of
this chapter, of one or more persons, which may include the surviving or resulting
organization or any officer, representative, or agent of the surviving or resulting organization,
as representative of the shareholders or the holders of rights to purchase of the corporation,
including the shareholders and holders whose shares or rights to purchase must be canceled,
converted, or exchanged in the merger or exchange and for the delegation to the person or
persons of the sole and exclusive authority to take action and bring claims on behalf of the
shareholders and the holders pursuant to the plan, including taking actions and bringing
claims, including by entering into settlements, as the representative determines to enforce
the rights of the shareholders and holders under the plan of merger or exchange, on the
terms and subject to the conditions set forth in the plan; (ii) that an appointment is irrevocable
and binding on all shareholders and holders from and after the approval of the plan of merger
or exchange by the requisite vote of shareholders pursuant to this chapter; and (iii) that a
provision adopted pursuant to this clause may not be amended after the merger or exchange
has become effective or may be amended only with the consent or approval of persons
specified in the plan of merger or exchange.
new text end
ARTICLE 7
MISCELLANEOUS COMMERCE PROVISIONS
Section 1.
Minnesota Statutes 2024, section 41A.09, subdivision 2a, is amended to read:
Subd. 2a.
Definitions.
For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other
renewable resources, including residue and waste generated from the production, processing,
and marketing of agricultural products, forest products, and other renewable resources, that:
(1) meets all of the specifications in ASTM specification deleted text begin D4806-04adeleted text end new text begin D4806-21anew text end ; and
(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.
(b) "Ethanol plant" means a plant at which ethanol is produced.
(c) "Commissioner" means the commissioner of agriculture.
(d) "Rural economic infrastructure" means the development of activities that will enhance
the value of agricultural crop or livestock commodities or by-products or waste from farming
operations through new and improved value-added conversion processes and technologies,
the development of more timely and efficient infrastructure delivery systems, and the
enhancement of marketing opportunities. "Rural economic infrastructure" also means land,
buildings, structures, fixtures, and improvements located or to be located in Minnesota and
used or operated primarily for the processing or the support of production of marketable
products from agricultural commodities or wind energy produced in Minnesota.
Sec. 2.
Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:
Subdivision 1.
General powers.
new text begin (a) new text end In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:
(1) make public or private investigations within or without this state as the commissioner
considers necessary to determine whether any person has violated or is about to violate any
law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the matter
being investigated;
(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;
(4) conduct investigations and hold hearings for the purpose of compiling information
related to the duties and responsibilities entrusted to the commissioner;
(5) examine the books, accounts, records, and files of every licensee, and of every person
who is engaged in any activity regulated; the commissioner or a designated representative
shall have free access during normal business hours to the offices and places of business of
the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
in the place of business;
(6) publish information which is contained in any order issued by the commissioner;
(7) require any person subject to duties and responsibilities entrusted to the commissioner,
to report all sales or transactions that are regulated. The reports must be made within ten
days after the commissioner has ordered the report. The report is accessible only to the
respondent and other governmental agencies unless otherwise ordered by a court of competent
jurisdiction; deleted text begin and
deleted text end
(8) assess a natural person or entity subject to the jurisdiction of the commissioner the
necessary expenses of the investigation performed by the department when an investigation
is made by order of the commissioner. The cost of the investigation shall be determined by
the commissioner and is based on the salary cost of investigators or assistants and at an
average rate per day or fraction thereof so as to provide for the total cost of the investigation.
All money collected must be deposited into the general fund. A natural person or entity
licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
investigation results in no finding of a violation. This clause does not apply to a natural
person or entity already subject to the assessment provisions of sections 60A.03 and
60A.031deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(9) issue data calls.
new text end
new text begin
(b) For purposes of this section, "data call" means a written request from the
commissioner to two or more natural persons or entities subject to the commissioner's
jurisdiction to provide data or other information within a reasonable time period
commensurate with the volume and nature of the data required to be collected in the data
call for a specific, targeted regulatory oversight purpose. A data call is not market analysis,
as defined under section 60A.031, subdivision 4, paragraph (f), and is not subject to section
60A.033.
new text end
Sec. 3.
Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
read:
new text begin Subd. 1b. new text end
new text begin Data calls. new text end
new text begin
(a) Information provided in response to a data call issued by the
commissioner: (1) must be treated as nonpublic data, as defined under section 13.02,
subdivision 9; and (2) is not subject to subpoena. If the commissioner performs a data call,
the commissioner may make the results available for public inspection in an aggregated
format and in such a manner as to not disclose the identity of a specific natural person or
entity, including the name of any natural person or entity who responded to the data call.
Prior to making the aggregated results of a data call available for public inspection, the
commissioner must provide all natural persons and entities that responded to the data call
15 days' notice of the information to be publicly released. Nothing in this subdivision requires
the commissioner to publicly release aggregated results from a data call. The results of a
data call that requests data for the National Association of Insurance Commissioners' Market
Conduct Annual Statement is subject to confidential treatment as provided under section
60A.031, subdivision 4, paragraph (f).
new text end
new text begin
(b) The commissioner may grant access to data submitted by insurers in response to a
data call issued by the commissioner with other state, federal, and international regulatory
agencies; with the National Association of Insurance Commissioners and its affiliates and
subsidiaries; and with state, federal, and international law enforcement authorities, provided
that the recipient agrees in writing to maintain the data as nonpublic data and has the legal
authority to maintain the data as nonpublic data.
new text end
Sec. 4.
Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:
Subd. 2.
Power to compel production of evidence.
For the purpose of any investigation,
hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
commissioner, the commissioner or a designated representative maynew text begin issue data calls,new text end
administer oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers, correspondence, memoranda,
agreements, or other documents or records that the commissioner considers relevant or
material to the inquiry.
A subpoena issued pursuant to this subdivision must state that the person to whom the
subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
the requested records have been given to law enforcement personnel except:
(1) insofar as the disclosure is necessary to find and disclose the records; or
(2) pursuant to court order.
Sec. 5.
Minnesota Statutes 2024, section 45.24, is amended to read:
45.24 LICENSE TECHNOLOGY FEES.
(a) The commissioner may establish and maintain an electronic licensing database system
for license origination, renewal, and tracking the completion of continuing education
requirements by individual licensees who have continuing education requirements, and
other related purposes.
(b) The commissioner shall pay for the cost of operating and maintaining the electronic
database system described in paragraph (a) through a technology surcharge imposed upon
the fee for license origination and renewal, for individual licenses that require continuing
education.
(c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
time of license origination and renewal.
(d) The Commerce Department technology account is hereby created as an account in
the special revenue fund.
(e) The commissioner shall deposit the surcharge permitted under this section in the
account created in paragraph (d), and funds in the account are appropriated to the
commissioner in the amounts needed for purposes of this section. The commissioner of
management and budget shall transfer an amount determined by the commissioner of
commerce from the account to the statewide electronic licensing system account under
section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
of licenses subject to this section.
(f) The commissioner deleted text begin shalldeleted text end new text begin maynew text end temporarily reduce or suspend the surcharge as necessary
if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end ofnew text begin
June innew text end any calendar year and deleted text begin shalldeleted text end new text begin must annually review the anticipated costs under
paragraph (b) to determine the amount tonew text end increase or decrease the surcharge deleted text begin as necessarydeleted text end
to keep the fund balance at an adequate level but not in excess of $2,000,000.
Sec. 6.
Minnesota Statutes 2024, section 80A.66, is amended to read:
80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
(a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
minimum financial requirements for broker-dealers registered or required to be registered
under this chapter and investment advisers registered or required to be registered under this
chapter.
(b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
chapter and an investment adviser registered or required to be registered under this chapter
shall file such financial reports as are required by a rule adopted or order issued under this
chapter. If the information contained in a record filed under this subsection is or becomes
inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
amendment.
(c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22):
(1) a broker-dealer registered or required to be registered under this chapter and an
investment adviser registered or required to be registered under this chapter shall make and
maintain the accounts, correspondence, memoranda, papers, books, and other records
required by rule adopted or order issued under this chapter;
(2) broker-dealer records required to be maintained under paragraph (1) may be
maintained in any form of data storage acceptable under Section 17(a) of the Securities
Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
administrator; and
(3) investment adviser records required to be maintained under paragraph (d)(1) may
be maintained in any form of data storage required by rule adopted or order issued under
this chapter.
(d) Records and reports of private funds.
(1) In general. An investment adviser to a private fund shall maintain such records of,
and file with the administrator such reports and amendments thereto, that an exempt reporting
adviser is required to file with the Securities and Exchange Commission pursuant to SEC
Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
(2) Treatment of records. The records and reports of any private fund to which an
investment adviser provides investment advice shall be deemed to be the records and reports
of the investment adviser.
(3) Required information. The records and reports required to be maintained by an
investment adviser, which are subject to inspection by a representative of the administrator
at any time, shall include for each private fund advised by the investment adviser, a
description of:
(A) the amount of assets under management;
(B) the use of leverage, including off-balance-sheet leverage, as to the assets under
management;
(C) counterparty credit risk exposure;
(D) trading and investment positions;
(E) valuation policies and practices of the fund;
(F) types of assets held;
(G) side arrangements or side letters, whereby certain investors in a fund obtain more
favorable rights or entitlements than other investors;
(H) trading practices; and
(I) such other information as the administrator determines is necessary and appropriate
in the public interest and for the protection of investors, which may include the establishment
of different reporting requirements for different classes of fund advisers, based on the type
or size of the private fund being advised.
(4) Filing of records. A rule or order under this chapter may require each investment
adviser to a private fund to file reports containing such information as the administrator
deems necessary and appropriate in the public interest and for the protection of investors.
(e) Audits or inspections. The records of a broker-dealer registered or required to be
registered under this chapter and of an investment adviser registered or required to be
registered under this chapter, including the records of a private fund described in paragraph
(d) and the records of investment advisers to private funds, are subject to such reasonable
periodic, special, or other audits or inspections by a representative of the administrator,
within or without this state, as the administrator considers necessary or appropriate in the
public interest and for the protection of investors. An audit or inspection may be made at
any time and without prior notice. The administrator may copy, and remove for audit or
inspection copies of, all records the administrator reasonably considers necessary or
appropriate to conduct the audit or inspection. The administrator may assess a reasonable
charge for conducting an audit or inspection under this subsection.
(f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
under this chapter may require a broker-dealer or investment adviser that has custody of or
discretionary authority over funds or securities of a customer or client to obtain insurance
or post a bond or other satisfactory form of security in an amount of at least $25,000, but
not to exceed $100,000. The administrator may determine the requirements of the insurance,
bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
of security may not be required of a broker-dealer registered under this chapter whose net
capital exceeds, or of an investment adviser registered under this chapter whose minimum
financial requirements exceed, the amounts required by rule or order under this chapter.
The insurance, bond, or other satisfactory form of security must permit an action by a person
to enforce any liability on the insurance, bond, or other satisfactory form of security if
instituted within the time limitations in section 80A.76(j)(2).
(g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
customer except under the supervision of a broker-dealer and an investment adviser
representative may not have custody of funds or securities of a client except under the
supervision of an investment adviser or a federal covered investment adviser. A rule adopted
or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
regarding custody of funds or securities of a customer and on an investment adviser regarding
custody of securities or funds of a client.
(h) Investment adviser brochure rule. With respect to an investment adviser registered
or required to be registered under this chapter, a rule adopted or order issued under this
chapter may require that information or other record be furnished or disseminated to clients
or prospective clients in this state as necessary or appropriate in the public interest and for
the protection of investors and advisory clients.
(i) Continuing education. A rule adopted or order issued under this chapter may require
an individual registered under section 80A.57 or 80A.58 to participate in a continuing
education program approved by the Securities and Exchange Commission and administered
by a self-regulatory organizationnew text begin , the North American Securities Administrators Association,
or the commissionernew text end .
Sec. 7.
Minnesota Statutes 2024, section 80E.12, is amended to read:
80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
FACTORY BRANCHES.
It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
motor vehicle dealer to do any of the following:
(a) order or accept delivery of any new motor vehicle, part or accessory thereof,
equipment, or any other commodity not required by law which has not been voluntarily
ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
supersede reasonable provisions of the franchise requiring the dealer to market a
representative line of the new motor vehicles the manufacturer or distributor is publicly
advertising;
(b) order or accept delivery of any new motor vehicle, part or accessory thereof,
equipment, or any other commodity not required by law in order for the dealer to obtain
delivery of any other motor vehicle ordered by the dealer;
(c) order or accept delivery of any new motor vehicle with special features, accessories,
or equipment not included in the list price of the motor vehicles as publicly advertised by
the manufacturer or distributor;
(d) participate monetarily in an advertising campaign or contest, or to purchase any
promotional materials, showroom, or other display decorations or materials at the expense
of the new motor vehicle dealer;
(e) enter into any agreement with the manufacturer or to do any other act prejudicial to
the new motor vehicle dealer by threatening to cancel a franchise or any contractual
agreement existing between the dealer and the manufacturer. Notice in good faith to any
dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
a violation of sections 80E.01 to 80E.17;
(f) change the capital structure of the new motor vehicle dealer or the means by or
through which the dealer finances the operation of the dealership; provided, that the new
motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
dealer; and also provided, that no change in the capital structure shall cause a change in the
principal management or have the effect of a sale of the franchise without the consent of
the manufacturer or distributor as provided in section 80E.13, paragraph (j);
(g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
from changing the executive management control of the new motor vehicle dealer unless
the franchisor proves that the change of executive management will result in executive
management control by a person who is not of good moral character or who does not meet
the franchisor's existing reasonable capital standards and, with consideration given to the
volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
business experience standards in the market area; provided, that where the manufacturer,
distributor, or factory branch rejects a proposed change in executive management control,
the manufacturer, distributor, or factory branch shall give written notice of its reasons to
the dealer;
(h) refrain from participation in the management of, investment in, or the acquisition
of, any other line of new motor vehicle or related products or establishment of another make
or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
provided, however, that this clause does not apply unless the new motor vehicle dealer
maintains a reasonable line of credit for each make or line of new motor vehicle, and that
the new motor vehicle dealer remains in substantial compliance with the terms and conditions
of the franchise and with any reasonable facilities requirements of the manufacturer and
that the acquisition or addition is not unreasonable in light of all existing circumstances;
provided further that if a manufacturer determines to deny a dealer's request for a change
described in this paragraph, such denial must be in writing, must offer an analysis of the
grounds for the denial addressing the criteria contained in this paragraph, and must be
delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
the completed application or documents customarily used by the manufacturer for dealer
actions described in this paragraph. If a denial that meets the requirements of this paragraph
is not sent within this period, the manufacturer shall be deemed to have given its consent
to the proposed change.
For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
establish or maintain exclusive facilities for the manufacturer of a line make unless
determined to be reasonable in light of all existing circumstances or the dealer and the
manufacturer voluntarily agree to such a requirement and separate and adequate consideration
was offered and accepted;
(i) during the course of the agreement, change the location of the new motor vehicle
dealership or make any substantial alterations to the dealership premises during the course
of the agreement, when to do so would be unreasonable or if the manufacturer fails to
provide the dealer 180 days' prior written notice of a required change in location or substantial
premises alteration; deleted text begin or
deleted text end
(j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
be referred to any person or tribunal other than the duly constituted courts of this state or
the United States, if the referral would be binding upon the new motor vehicle dealerdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(k) refrain from participation in an auto show described in section 168.27, subdivision
10a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2024, section 82B.19, subdivision 5, is amended to read:
Subd. 5.
Out-of-state continuing education credit.
(a) For purposes of this subdivision,
the following terms have the meanings given:
(1) "asynchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board; and
(2) "synchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board, and includes an educational process based on live or real-time
instruction where there is no geographic separation of instructor and student.
(b) Notwithstanding section 45.30, subdivisions 1 and 6, a real estate appraisernew text begin or course
providernew text end may submit, in a form prescribed by the commissioner, an application for continuing
education credit for a synchronous educational offering that has not been submitted for prior
approval in Minnesota. The commissioner must grant a real estate appraiser continuing
education credit if:
(1) the application is submitted on or before August 1 of the year in which the real estate
appraiser license is due for renewal;
(2) the synchronous educational offering has been approved for continuing education
credit by the regulator of real estate appraisers in at least one other state or United States
territory; and
(3) an application is submitted by the real estate appraisernew text begin or course providernew text end to the
commissioner within deleted text begin 30deleted text end new text begin 60new text end days of successful completion of the synchronous educational
offering.
(c) The application must include a certificate of successful completion from the
synchronous educational offering provider. The commissioner must grant a real estate
appraiser the same number of continuing education credits for the successful completion
of the synchronous educational offering as was approved for the offering by the out-of-state
real estate appraiser regulatory authority. The commissioner must grant a real estate appraiser
continuing education credit within 60 days of the submission of the completed application
for out-of-state continuing education credit.
(d) The commissioner may charge a fee to a real estate appraiser, in an amount to be
determined by the commissioner, to submit an application under this subdivision.
(e) This subdivision does not apply to asynchronous educational offerings.
Sec. 9.
Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
read:
new text begin Subd. 10a. new text end
new text begin Participation in auto shows. new text end
new text begin
(a) A new motor vehicle dealer may participate
in an auto show outside the county where the dealer maintains the dealer's licensed location
to sell new vehicles without obtaining an additional license if:
new text end
new text begin
(1) the dealer participates in an auto show that takes place in a county other than the
county where the dealer maintains a licensed location not more than four times during any
calendar year;
new text end
new text begin
(2) the auto show is held at a location in a city of the first class or a city immediately
adjacent to a city of the first class;
new text end
new text begin
(3) the auto show is not held at a licensed location of any participating dealer;
new text end
new text begin
(4) there are ten or more dealers participating in the auto show;
new text end
new text begin
(5) the auto show is of a duration of no more than 12 consecutive days;
new text end
new text begin
(6) the auto show is conducted by a trade association exempt from federal taxes under
United States Code, title 26, section 501(c)(6); and
new text end
new text begin
(7) the auto show expressly prohibits:
new text end
new text begin
(i) the sale or lease of vehicles at the show;
new text end
new text begin
(ii) labeling or marking vehicles as "For Sale" or "Sold";
new text end
new text begin
(iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
label;
new text end
new text begin
(iv) using printed posters, cards, and other printed materials that contain special dealership
pricing; and
new text end
new text begin
(v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
new text end
new text begin
(b) The auto show may permit:
new text end
new text begin
(1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
and factory-approved rebates;
new text end
new text begin
(2) exhibitor staff to make appointments for potential customers to visit the dealership,
collect names of customer leads for later contact, and discuss the suggested retail price of
a vehicle and the availability of particular lines of vehicles; and
new text end
new text begin
(3) test rides or test drives of new vehicles but only under a program conducted by the
auto show.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2024, section 239.761, subdivision 3, is amended to read:
Subd. 3.
Gasoline.
(a) Gasoline that is not blended with biofuel must not be contaminated
with water or other impurities and must comply with ASTM specification deleted text begin D4814-11bdeleted text end new text begin
D4814-24anew text end . Gasoline that is not blended with biofuel must also comply with the volatility
requirements in Code of Federal Regulations, title 40, part 1090.
(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:
(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision
4;
(2) shall not blend the gasoline with any oxygenate other than biofuel;
(3) shall not blend the gasoline with other petroleum products that are not gasoline or
biofuel;
(4) shall not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.
Sec. 11.
Minnesota Statutes 2024, section 239.761, subdivision 4, is amended to read:
Subd. 4.
Gasoline blended with ethanol; general.
(a) Gasoline may be blended with
agriculturally derived, denatured ethanol that complies with the requirements of subdivision
5.
(b) A gasoline-ethanol blend must:
(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part
1090;
(2) comply with ASTM specification deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end , or the gasoline base stock
from which a gasoline-ethanol blend was produced must comply with ASTM specification
deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end ; and
(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,
or otherwise removed from a refinery or terminal.
Sec. 12.
Minnesota Statutes 2024, section 239.761, subdivision 5, is amended to read:
Subd. 5.
Denatured ethanol.
Denatured ethanol that is to be blended with gasoline must
be agriculturally derived and must comply with ASTM specification deleted text begin D4806-11adeleted text end new text begin D4806-21anew text end .
This includes the requirement that ethanol may be denatured only as specified in Code of
Federal Regulations, title 27, parts 20 and 21.
Sec. 13.
Minnesota Statutes 2024, section 239.761, subdivision 6, is amended to read:
Subd. 6.
Gasoline blended with nonethanol oxygenate.
(a) A person responsible for
the product shall comply with the following requirements:
(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total,
of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any
time in this state; and
(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
paragraph (b) must not be sold or offered for sale in this state.
(b) The oxygenates prohibited under paragraph (a) are:
(1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;
(2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or
(3) tertiary amyl methyl ether.
(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
specification deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end . Nonethanol oxygenates must not be blended into
gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery
or terminal.
Sec. 14.
Minnesota Statutes 2024, section 239.791, subdivision 11, is amended to read:
Subd. 11.
Exemption for motor sports racing.
new text begin (a) new text end A person responsible for the product
may offer for sale, sell, or dispense at a public or private racecoursenew text begin or a retail gasoline
stationnew text end , gasoline that is not oxygenated in accordance with subdivision 1 if the gasoline is
intended to be used exclusively as a fuel for off-highway motor sports racing events.
new text begin
(b) No more than one storage tank on the premises of a retail gasoline station may be
used for the storage of nonoxygenated motor sports racing gasoline that is offered for sale,
sold, or dispensed at the station. The pump stand at the station must be posted with a
permanent, conspicuously placed notice in full view of consumers stating: "FOR USE IN
OFF-HIGHWAY MOTOR SPORTS ENGINES ONLY."
new text end
Sec. 15.
Minnesota Statutes 2024, section 296A.01, subdivision 20, is amended to read:
Subd. 20.
Ethanol, denatured.
"Ethanol, denatured" means ethanol that is to be blended
with gasoline, has been agriculturally derived, and complies with ASTM specification
deleted text begin D4806-11adeleted text end new text begin D4806-21anew text end . This includes the requirement that ethanol may be denatured only
as specified in Code of Federal Regulations, title 27, parts 20 and 21.
Sec. 16.
Minnesota Statutes 2024, section 296A.01, subdivision 23, is amended to read:
Subd. 23.
Gasoline.
(a) "Gasoline" means:
(1) all products commonly or commercially known or sold as gasoline regardless of
their classification or uses, except casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise
removed from a refinery or terminal; and
(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and
commercially used as, a fuel in spark-ignition, internal combustion engines, and that when
tested by the Weights and Measures Division meets the specifications in ASTM specification
deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end .
(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end
and the volatility requirements in Code of Federal Regulations, title 40, part 1090.
(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:
(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision
24;
(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally
derived ethanol;
(3) must not blend the gasoline with other petroleum products that are not gasoline or
denatured, agriculturally derived ethanol;
(4) must not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.
Sec. 17.
Minnesota Statutes 2024, section 296A.01, subdivision 24, is amended to read:
Subd. 24.
Gasoline blended with nonethanol oxygenate.
"Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or
ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that
complies with ASTM specification deleted text begin D4814-11bdeleted text end new text begin D4814-24anew text end . Oxygenates, other than denatured
ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.
Sec. 18.
new text begin
[325F.677] AVAILABILITY OF WATER AT PLACES OF
ENTERTAINMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "place of entertainment" has the
meaning given in section 325F.676, subdivision 1, paragraph (h).
new text end
new text begin Subd. 2. new text end
new text begin Available water requirement. new text end
new text begin
When occupancy exceeds 100 attendees and
when an attendee must have a ticket in order to access the place of entertainment, a place
of entertainment must provide attendees with access to potable water by:
new text end
new text begin
(1) providing water at no cost to the attendees;
new text end
new text begin
(2) allowing attendees to bring factory-sealed bottled water into the place of
entertainment; or
new text end
new text begin
(3) allowing attendees to bring an empty water bottle to the place of entertainment and
providing attendees with access to potable water to fill the bottle. A place of entertainment
may prohibit certain types and sizes of water bottles in order to protect the safety of others.
new text end
new text begin Subd. 3. new text end
new text begin Exceptions. new text end
new text begin
A museum exhibit gallery or presentation space where beverages
are prohibited is not required to allow water into the museum exhibit gallery or presentation
space if water is available at no cost in an accessible location outside of the museum exhibit
gallery or presentation space.
new text end
Sec. 19. new text begin SECURITIES BROKER-DEALER CONDUCT; EXPEDITED
RULEMAKING.
new text end
new text begin
The commissioner of commerce must adopt rules amending Minnesota Rules, part
2876.5021, to reflect that NASD is now referred to as FINRA and to comply with FINRA's
new securities broker-dealer conduct rules. The commissioner of commerce may use the
expedited rulemaking process under Minnesota Statutes, section 14.389, to amend Minnesota
Rules, part 2876.5021, under this section.
new text end
Sec. 20. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 325F.02; 325F.03; 325F.04; 325F.05; 325F.06; and
325F.07,
new text end
new text begin
are repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: H2403-2
62A.3099 DEFINITIONS.
Subd. 18b.
Open enrollment period.
"Open enrollment period" means the time period described in Code of Federal Regulations, title 42, section 422.62, paragraph (a), clauses (2) to (4), as amended.
62A.31 MEDICARE SUPPLEMENT BENEFITS; MINIMUM STANDARDS.
Subd. 1w.
Open enrollment.
A medicare supplement policy or certificate must not be sold or issued to an eligible individual outside of the time periods described in subdivision 1u.
65B.10 ELIGIBILITY.
Subd. 3.
Review of insureds.
At least annually, every member shall review every private passenger nonfleet applicant which it insures through the facility and determine whether or not such applicant is acceptable for voluntary insurance at a rate lower than the facility rate. If such applicant is acceptable, the member shall make an offer to insure the applicant under voluntary coverage at such lower rate.
325F.02 MANUFACTURE, STORAGE, OR SALE OF MATCHES.
Subdivision 1.
Safety matches.
No person, association, or corporation shall manufacture, store, offer for sale, sell, or otherwise dispose of, or distribute, white phosphorus, single-dipped, strike-anywhere matches of the type popularly known as "parlor matches", or any type of double-dipped matches, unless the bulb or first dip of such match is composed of a so-called safety or inert composition, nonignitable on an abrasive surface. No person, association, or corporation shall manufacture, store, sell, offer for sale, or otherwise dispose of, or distribute, matches which will ignite in a laboratory oven at a temperature of less than 200 degrees Fahrenheit when subjected in such laboratory oven to a gradually increasing heat and maintained at the before stated continuous temperature for a period of not less than eight hours, or blazer or so-called wind matches, whether of the so-called safety or strike-anywhere type.
Subd. 2.
Brands and trademarks.
No person, association, or corporation shall offer for sale, sell or otherwise dispose of, or distribute, any matches, unless the package or container in which such matches are packed bears, plainly marked on the outside thereof, the name of the manufacturer and the brand or trademark under which such matches are sold, disposed of, or distributed.
Subd. 3.
How kept in retail stores.
Not more than one case of each brand of matches of any type or manufacture shall be opened at any one time in any retail store where matches are sold or otherwise disposed of; nor shall loose boxes, or paper-wrapped packages, of matches be kept on shelves or stored in retail stores at a height exceeding five feet from the floor.
Subd. 4.
Storage in warehouses.
All matches stored in warehouses, excepting manufacturer's warehouse at place of manufacture, which contain automatic sprinkler equipment, must be kept only in properly secured cases, and not piled to a height exceeding ten feet from the floor; nor be stored within a horizontal distance of ten feet from any boiler, furnace, stove, or other like heating apparatus, nor within a horizontal distance of 25 feet from any explosive material kept or stored on the same floor.
Subd. 5.
Boxes, how made.
All matches shall be packed in boxes or suitable packages, containing not more than 700 matches in any one box or package; provided, that when more than 300 matches are packed in any one box or package, the matches shall be arranged in two nearly equal portions, the heads of the matches in the two portions shall be placed in opposite directions; and all boxes containing 350 or more matches shall have placed over the matches a center holding or protecting strip, made of chipboard, not less than 1-1/4 inches wide, which shall be flanged down to hold the matches in position when the box is nested into the shuck or withdrawn from it.
Subd. 6.
Containers or cases; number of boxes or packages; how marked.
All match boxes or packages shall be packed in strong shipping containers or cases; maximum number of match boxes or packages contained in any one shipping container or case shall not exceed the following number:
| Number of boxes | Numerical number ofmatches per box | |
| 1/2 gross | . | 700 |
| 1 gross | . | 500 |
| 2 gross | . | 400 |
| 3 gross | . | 300 |
| 5 gross | . | 200 |
| 12 gross | . | 100 |
| 20 gross | . | Over 50 and under 100 |
| 25 gross | . | Under 50 |
No shipping container or case constructed of fiberboard, corrugated fiberboard, or wood, nailed or wire-bound, containing matches, shall have a weight, including its contents, exceeding 75 pounds; and no lock-cornered wood case containing matches shall have a weight, including its contents, exceeding 85 pounds; nor shall any other article or commodity be packed with matches in any container or case; and all shipping containers or cases containing strike-anywhere matches shall have plainly marked on the outside thereof the words "strike-anywhere matches," and all shipping containers or cases containing "strike on box" matches shall have plainly marked on the outside thereof the words "strike on box matches."
Subd. 7.
Violations; penalties.
Any person, association, or corporation violating any of the provisions of this section shall be fined, for the first offense, not less than $5 nor more than $25 and for each subsequent violation, not less than $25.
325F.03 FLAME RESISTANT PUBLIC ASSEMBLY TENTS.
No person, firm or corporation shall establish, maintain or operate any circus, side show, carnival, tent show, theater, skating rink, dance hall, or a similar exhibition, production, engagement or offering or other place of assemblage in or under which 15 or more persons may gather for any lawful purpose in any tent, awning or other fabric enclosure unless such tent, awning or other fabric enclosure, and all auxiliary tents, curtains, drops, awnings and all decorative materials, are made from a nonflammable material or are treated and maintained in a flame resistant condition. This section does not apply to tents designed or manufactured for camping, backpacking, mountaineering, or children's play; tents used to conduct committal services on the grounds of a cemetery; nor to tents, awnings or other fabric enclosures erected and used within a sound stage, or other similar structural enclosure which is equipped with an overhead automatic sprinkler system.
325F.04 FLAME RESISTANT TENTS.
No person, firm, or corporation may sell or offer for sale or manufacture for sale in this state any tent subject to section 325F.03 unless all fabrics or pliable materials in the tent are durably flame resistant. Tents subject to section 325F.03 shall be conspicuously labeled as being durably flame resistant.
325F.05 RULES.
The commissioner of public safety shall act so as to have effective rules concerning standards for durably flame resistant materials and for labeling requirements under sections 325F.03 and 325F.04. In order to comply with sections 325F.03 and 325F.04, all materials and labels must comply with the rules adopted by the commissioner. The commissioner has general rulemaking power to otherwise implement sections 325F.03 to 325F.07.
325F.06 CIVIL PENALTIES.
Any firm or corporation who violates sections 325F.03 to 325F.05 shall be strictly liable for any damage which occurs to any person as a result of such violation. In addition, any seller shall refund the full purchase price of any item sold in violation of section 325F.04 upon return of the item by the buyer.
325F.07 CRIMINAL PENALTY.
Any person, firm or corporation which violates sections 325F.03 to 325F.05 is guilty of a misdemeanor.
Repealed Minnesota Session Laws: H2403-2
Laws 2023, chapter 57, article 2, section 66
Sec. 66. new text begin REPEALER.new text end
new text begin Minnesota Statutes 2022, section 62A.31, subdivisions 1b and 1i, new text end new text begin are repealed. new text end
new text begin EFFECTIVE DATE. new text end
new text begin This section is effective August 1, 2025, and applies to policies offered, issued, or renewed on or after that date. new text end