SF 4365
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/21/2026 09:58 a.m.
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
2.32 2.33 2.34 2.35 2.36 2.37 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 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 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 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 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 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 8.31 8.32 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 9.32 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 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 11.29 11.30 11.31
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 12.33 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 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 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
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 19.31 19.32 19.33 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
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 21.30 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 23.34 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 24.35 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 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
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 28.34 28.35
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 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 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 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
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
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 36.34 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 38.31 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 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
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 42.31 42.32 42.33 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 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 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 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 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 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 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 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 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 55.32 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
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
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 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 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 61.34 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 62.33 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 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 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
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 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 68.32 68.33 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 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
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
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 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 73.32 73.33 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
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 75.33
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 76.32 76.33 76.34 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 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 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 79.32 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 81.32 81.33 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 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 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 84.30 84.31 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 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 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
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 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 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 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 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 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 93.33 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 94.32 94.33 94.34 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 95.30 95.31 95.32 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 96.31 96.32 96.33 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 97.32 97.33 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 99.30 99.31 99.32 99.33 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 103.1 103.2 103.3
103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31
108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28
109.1 109.2
109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16
109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17
110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26
110.27 110.28 110.29 110.30 110.31 111.1 111.2 111.3 111.4 111.5
111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28
111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3
112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13
112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21
112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29
113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9
113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 115.1 115.2 115.3 115.4 115.5 115.6 115.7
115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17
115.18 115.19 115.20 115.21 115.22
115.23 115.24
115.25 115.26 115.27 115.28 115.29 115.30 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 117.1 117.2 117.3 117.4 117.5 117.6
117.7 117.8
117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28
117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4
118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21
118.22 118.23 118.24 118.25 118.26 118.27
118.28 118.29 118.30 118.31 118.32 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 120.1 120.2 120.3 120.4 120.5 120.6
120.7 120.8
120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11
127.12 127.13 127.14 127.15 127.16 127.17 127.18
127.19 127.20 127.21 127.22 127.23
127.24 127.25 127.26 127.27 127.28
128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8
128.9 128.10 128.11 128.12 128.13 128.14
128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23
128.24 128.25 128.26 128.27 128.28 128.29 128.30 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9
129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17
129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32
131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25
131.26 131.27 131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27
133.28 133.29 133.30 133.31 133.32
134.1 134.2 134.3
134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8
135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26
135.27 135.28 135.29 135.30
136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15
136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31
137.1 137.2 137.3 137.4 137.5 137.6
137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17
137.18 137.19
137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17
138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 142.1 142.2 142.3 142.4
142.5 142.6
142.7 142.8 142.9
142.10 142.11
142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25
143.26 143.27
143.28 143.29 143.30 143.31 143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8
144.9 144.10
144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26
147.27 147.28
147.29 147.30 147.31 147.32 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12
148.13 148.14
148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 150.1 150.2
150.3 150.4
150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20
150.21 150.22
150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 151.1 151.2 151.3 151.4 151.5 151.6
151.7 151.8
151.9 151.10 151.11 151.12 151.13 151.14 151.15
151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28
152.1 152.2 152.3 152.4 152.5 152.6 152.7
152.8 152.9 152.10 152.11
152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22
152.23 152.24 152.25 152.26 152.27 152.28 152.29
153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14
153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 154.1 154.2 154.3 154.4 154.5 154.6
154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30
155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18
155.19 155.20
155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28
156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8
156.9 156.10 156.11 156.12
156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 157.1 157.2 157.3 157.4 157.5 157.6 157.7
157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24
157.25 157.26
157.27 157.28 157.29 157.30 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16
158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31
159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10
159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6
160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 161.1 161.2
161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14
161.15 161.16 161.17 161.18 161.19
161.20 161.21 161.22 161.23 161.24
161.25 161.26 161.27 161.28 161.29 161.30 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12
162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26
162.27 162.28 162.29 162.30 163.1 163.2
163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18
163.19 163.20 163.21
163.22 163.23 163.24 163.25 163.26 163.27
163.28 163.29
164.1 164.2 164.3
164.4 164.5 164.6
164.7 164.8 164.9
164.10 164.11 164.12 164.13
164.14 164.15 164.16 164.17 164.18
164.19 164.20 164.21 164.22 164.23
164.24 164.25 164.26
165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11
165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22
165.23 165.24 165.25 165.26 165.27
165.28 165.29 165.30 165.31
166.1 166.2 166.3 166.4 166.5 166.6 166.7
166.8 166.9 166.10 166.11 166.12 166.13
166.14 166.15 166.16 166.17 166.18
166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16
167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24
167.25 167.26 167.27 167.28
167.29 167.30 167.31 168.1 168.2
168.3 168.4 168.5 168.6 168.7 168.8 168.9
168.10 168.11 168.12 168.13 168.14 168.15
168.16 168.17
A bill for an act
relating to commerce; eliminating the Prescription Drug Affordability Advisory
Council; modifying various provisions governing nondepository financial
institutions, insurance, consumer protection, telecommunications, securities,
financial products, and unclaimed property; providing for health plan regulatory
alignment; transferring duties and employees; modifying the premium security
plan; modifying provisions related to charitable gambling; requiring reports; making
technical corrections; appropriating money and making reductions; amending
Minnesota Statutes 2024, sections 46.044, subdivision 1; 47.20, subdivision 1;
47.59, subdivision 1; 47.60, subdivision 1; 48.195; 49.37; 52.063, subdivision 3;
52.24, subdivisions 1, 2, by adding a subdivision; 53.04, subdivision 3a; 53B.69,
subdivision 10; 53B.74; 53C.09, subdivision 4; 56.002; 56.01; 56.05; 58.06,
subdivision 2; 58.14, subdivisions 3, 4, 5, by adding a subdivision; 58.18,
subdivision 4; 58B.02, by adding subdivisions; 58B.03, subdivisions 10, 11;
58B.051; 58B.06, subdivisions 4, 6; 60A.07, by adding a subdivision; 60A.085;
60A.13, subdivisions 1, 6; 60A.50, subdivisions 1, 3; 60A.951, subdivision 3;
60A.985, subdivision 8; 60A.9853, subdivision 1; 60A.9854; 60B.03, subdivision
2; 60G.01, subdivisions 2, 4; 60K.383; 62A.02, subdivision 8; 62A.021, subdivision
1; 62A.135, subdivision 1; 62A.46, subdivision 2; 62A.61; 62A.65, subdivisions
7, 8; 62D.08, subdivisions 1, 2, 3, 7, by adding a subdivision; 62D.12, subdivision
1; 62D.124, subdivision 5; 62D.221, subdivisions 1, 2; 62E.11, subdivisions 9,
13; 62E.23, subdivision 1; 62J.40; 62J.60, subdivision 5; 62J.89, subdivisions 1,
2; 62J.90, subdivision 2; 62J.96, by adding a subdivision; 62K.07, subdivision 2;
62L.02, subdivision 8; 62L.08, subdivision 11; 62L.09, subdivision 3; 62L.10,
subdivision 4; 62L.11, subdivision 2; 62M.02, by adding a subdivision; 62M.09,
subdivision 3; 62M.11; 62Q.01, subdivision 2; 62Q.106; 62Q.188, subdivision 2;
62Q.37, subdivision 2; 62Q.47; 62Q.51, subdivision 3; 62Q.545; 62Q.556,
subdivisions 3, 4; 62Q.69, subdivisions 2, 3; 62Q.71; 62Q.73, subdivisions 3, 10;
62Q.81, subdivision 7; 62U.04, subdivision 13; 62W.06, by adding a subdivision;
65A.27, subdivision 1; 72A.061, subdivision 5; 72A.13, subdivision 1; 72A.18,
subdivision 2, by adding subdivisions; 72A.20, subdivision 2, by adding a
subdivision; 80A.50; 80C.12, subdivision 1; 80G.01, subdivision 5a; 237.035;
237.036; 237.069; 237.07, subdivision 1; 237.11; 237.164; 237.626, subdivisions
1, 3; 237.66, by adding subdivisions; 237.70, subdivision 7; 237.762, subdivision
5; 239.761, subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 239.77, subdivision 1;
256B.0913, subdivision 4; 296A.01, subdivisions 7, 8, 14, 19, 22, 26, 28, 35;
325E.21, subdivisions 1b, 2c; 325F.79; 325F.791, subdivisions 1, 5; 325F.792,
subdivision 2; 332.32; 332.52, subdivision 3; 332A.04, subdivision 1; 332B.04,
subdivision 1; 345.31, by adding a subdivision; 345.43, by adding a subdivision;
349.211, subdivision 2b; Minnesota Statutes 2025 Supplement, sections 8.37,
subdivisions 3, 5; 41A.09, subdivision 2a; 58B.02, subdivision 8a; 62A.31,
subdivision 1u; 62D.21; 62D.211; 62E.23, subdivisions 1a, 2; 80A.66; 239.761,
subdivisions 3, 4, 5, 6; 296A.01, subdivisions 20, 23, 24; 297I.20, subdivision 7;
proposing coding for new law in Minnesota Statutes, chapters 45A; 48; 52; 53B;
58; 60A; 62A; 62D; 65A; 80A; 82B; 82C; 325E; 325F; 325M; 345; proposing
coding for new law as Minnesota Statutes, chapters 59E; 65C; repealing Minnesota
Statutes 2024, sections 48.158; 53B.69, subdivisions 3b, 3c; 53B.75, subdivisions
1, 2, 3, 4, 5; 56.08; 62J.86, subdivision 2; 62J.88; 62J.96, subdivision 3; 237.065;
237.066; 237.067; 237.071; 237.072; 237.075, subdivisions 1, 2, 3, 4, 5, 6, 7, 8,
9, 10, 11; 237.14; 237.15; 237.16, subdivision 9; 237.22; 237.231; 237.59,
subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 10; 237.66, subdivisions 1, 1a, 1c, 1d, 2, 2a,
3; 237.75; 237.766; 237.768; 237.772; 237.775; 332A.02, subdivision 2; 332B.02,
subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
COMMERCE FINANCE
Section 1. new text begin HEALTH MAINTENANCE ORGANIZATIONS AND COUNTY-BASED
PURCHASERS REGULATION; APPROPRIATION.
new text end
new text begin
$1,750,000 in fiscal year 2028 is appropriated from the general fund to the commissioner
of commerce to regulate health maintenance organizations and county-based purchasers.
new text end
Sec. 2. new text begin APPROPRIATION REDUCTION.
new text end
new text begin
The commissioner of management and budget must reduce the Department of Health's
fiscal year 2028 general fund appropriation by $1,750,000 and must reduce the Department
of Health's fiscal year 2028 state government special revenue fund appropriation by
$1,836,000 to account for the transfer of health maintenance organization and county-based
purchaser regulatory responsibilities to the commissioner of commerce. These reductions
are ongoing.
new text end
ARTICLE 2
PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL
Section 1.
Minnesota Statutes 2024, section 62J.89, subdivision 1, is amended to read:
Subdivision 1.
Definition.
For purposes of this section, "conflict of interest" means a
financial or personal association that has the potential to bias or have the appearance of
biasing a person's decisions in matters related to the boarddeleted text begin , the advisory council,deleted text end or in the
conduct of the board's deleted text begin or council'sdeleted text end activities. A conflict of interest includes any instance in
which a person, a person's immediate family member, including a spouse, parent, child, or
other legal dependent, or an in-law of any of the preceding individuals, has received or
could receive a direct or indirect financial benefit of any amount deriving from the result
or findings of a decision or determination of the board. For purposes of this section, a
financial benefit includes honoraria, fees, stock, the value of the member's, immediate family
member's, or in-law's stock holdings, and any direct financial benefit deriving from the
finding of a review conducted under sections 62J.85 to 62J.95. Ownership of securities is
not a conflict of interest if the securities are: (1) part of a diversified mutual or exchange
traded fund; or (2) in a tax-deferred or tax-exempt retirement account that is administered
by an independent trustee.
Sec. 2.
Minnesota Statutes 2024, section 62J.89, subdivision 2, is amended to read:
Subd. 2.
General.
(a) Prior to the acceptance of an appointment or employment, or prior
to entering into a contractual agreement, a board deleted text begin or advisory councildeleted text end member, board staff
member, or third-party contractor must disclose to the appointing authority or the board
any conflicts of interest. The information disclosed must include the type, nature, and
magnitude of the interests involved.
(b) A board member, board staff member, or third-party contractor with a conflict of
interest with regard to any prescription drug product under review must recuse themselves
from any discussion, review, decision, or determination made by the board relating to the
prescription drug product.
(c) Any conflict of interest must be disclosed in advance of the first meeting after the
conflict is identified or within five days after the conflict is identified, whichever is earlier.
Sec. 3.
Minnesota Statutes 2024, section 62J.90, subdivision 2, is amended to read:
Subd. 2.
Identification of certain prescription drug products.
(a) The boarddeleted text begin , in
consultation with the advisory council, shalldeleted text end new text begin mustnew text end identify selected prescription drug products
based on the following criteria:
(1) brand name drugs or biologics for which the WAC increases by more than 15 percent
or by more than $3,000 during any 12-month period or course of treatment if less than 12
months, after adjusting for changes in the consumer price index (CPI);
(2) brand name drugs or biologics with a WAC of $60,000 or more per calendar year
or per course of treatment;
(3) biosimilar drugs that have a WAC that is not at least 20 percent lower than the
referenced brand name biologic at the time the biosimilar is introduced; and
(4) generic drugs for which the WAC:
(i) is $100 or more, after adjusting for changes in the CPI, for:
(A) a 30-day supply;
(B) a course of treatment lasting less than 30 days; or
(C) one unit of the drug, if the labeling approved by the Food and Drug Administration
does not recommend a finite dosage; and
(ii) increased by 200 percent or more during the immediate preceding 12-month period,
as determined by the difference between the resulting WAC and the average WAC reported
over the preceding 12 months, after adjusting for changes in the CPI.
The board is not required to identify all prescription drug products that meet the criteria in
this paragraph.
(b) The board, in consultation with deleted text begin the advisory council anddeleted text end the commissioner of health,
may identify prescription drug products not described in paragraph (a) that may impose
costs that create significant affordability challenges for the state health care system or for
patients, including but not limited to drugs to address public health emergencies.
(c) The board shall make available to the public the names and related price information
of the prescription drug products identified under this subdivision, with the exception of
information determined by the board to be proprietary under the standards developed by
the board under section 62J.91, subdivision 3, and information provided by the commissioner
of health classified as not public data under section 13.02, subdivision 8a, or as trade secret
information under section 13.37, subdivision 1, paragraph (b), or as trade secret information
under the Defend Trade Secrets Act of 2016, United States Code, title 18, section 1836, as
amended.
Sec. 4. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 62J.86, subdivision 2; and 62J.88,
new text end
new text begin
are repealed.
new text end
ARTICLE 3
NONDEPOSITORY INSTITUTIONS
Section 1.
Minnesota Statutes 2024, section 47.20, subdivision 1, is amended to read:
Subdivision 1.
General authority.
Pursuant to rules the commissioner of commerce
finds to be necessary and proper, if any, banks, savings banks, and savings associations
organized under the laws of this state or the United States, trust companies, trust companies
acting as fiduciaries, and other banking institutions subject to the supervision of the
commissioner of commerce,new text begin including residential mortgage originators and servicers under
chapter 58,new text end and mortgagees or lenders approved or certified by the secretary of housing and
urban development or approved or certified by the administrator of veterans affairs, or
approved or certified by the administrator of the Farmers Home Administration or any
successor, or approved or certified by the Federal Home Loan Mortgage Corporation, or
approved or certified by the Federal National Mortgage Association, are authorized:
(1) to make loans and advances of credit and purchases of obligations representing loans
and advances of credit which are insured or guaranteed by the secretary of housing and
urban development pursuant to the National Housing Act, as amended, or the administrator
of veterans affairs pursuant to the Servicemen's Readjustment Act of 1944, as amended, or
the administrator of the Farmers Home Administration or any successor pursuant to the
Consolidated Farm and Rural Development Act, Public Law 87-128, as amended, and to
obtain the insurance or guarantees;
(2) to make loans secured by mortgages on real property and loans secured by a share
or shares of stock or a membership certificate or certificates issued to a stockholder or
member by a cooperative apartment corporation which the secretary of housing and urban
development, the administrator of veterans affairs, or the administrator of the Farmers Home
Administration or any successor has insured or guaranteed or made a commitment to insure
or guarantee, and to obtain the insurance or guarantees;
(3) to make, purchase, or participate in such loans and advances of credit; including
reverse mortgage loans, notwithstanding anything in subdivision 4b, sections 47.58 and
334.01, and chapter 56 new text begin or 58 new text end to the contrary; as would be eligible for purchase, in whole or
in part, by the Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation, but without regard to any limitation placed upon the maximum principal amount
of an eligible loan;new text begin and
new text end
(4) to make, purchase or participate in such loans and advances of credit secured by
mortgages on real property which are authorized or allowed by the Office of Thrift
Supervision or the Office of the Comptroller of the Currency, or any successor to these
federal agencies.
Sec. 2.
Minnesota Statutes 2024, section 47.59, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following definitions shall
apply.
(a) "Actuarial method" has the meaning given the term in Code of Federal Regulations,
title 12, part 226, and appendix J thereto.
(b) "Annual percentage rate" has the meaning given the term in Code of Federal
Regulations, title 12, part 226, but using the definition of "finance charge" used in this
section.
(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale
contract.
(d) "Business purpose" means a purpose other than a personal, family, household, or
agricultural purpose.
(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with
the financial institution to pay obligations arising from the issuance to or use of the card by
another person.
(f) "Consumer loan" means a loan made by a financial institution in which:
(1) the debtor is a person other than an organization;
(2) the debt is incurred primarily for a personal, family, or household purpose; and
(3) the debt is payable in installments or a finance charge is made.
(g) "Credit" means the right granted by a financial institution to a borrower to defer
payment of a debt, to incur debt and defer its payment, or to purchase property or services
and defer payment.
(h) "Credit card" means a card or device issued under an arrangement pursuant to which
a financial institution gives to a cardholder the privilege of obtaining credit from the financial
institution or other person in purchasing or leasing property or services, obtaining loans, or
otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according
to the terms of the arrangement by transmitting information contained on the card or device
orally, in writing, by mechanical or electronic methods, or in any other manner. A transaction
is not "pursuant to a credit card" if the card or device is used solely in that transaction to:
(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is
not obtained according to the terms of the arrangement;
(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not
the payment results in a credit extension to the cardholder by the financial institution; or
(3) effect an immediate transfer of funds from the cardholder's deposit account by
electronic or other means, whether or not the transfer results in a credit extension to the
cardholder by the financial institution.
(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means
a sale of goods or services, or an interest in land, in which:
(1) credit is granted by a seller who regularly engages as a seller in credit transactions
of the same kind; and
(2) the debt is payable in installments or a finance charge is made.
(j) "Finance charge" has the meaning given in Code of Federal Regulations, title 12, part
226, except that the following will not in any event be considered a finance charge:
(1) a charge as a result of default or delinquency under subdivision 6 if made for actual
unanticipated late payment, delinquency, default, or other similar occurrence, and a charge
made for an extension or deferment under subdivision 5, unless the parties agree that these
charges are finance charges;
(2) an additional charge under subdivision 6;
(3) a discount, if a financial institution purchases a loan at less than the face amount of
the obligation or purchases or satisfies obligations of a cardholder pursuant to a credit card
and the purchase or satisfaction is made at less than the face amount of the obligation;
(4) fees paid by a borrower to a broker, provided the financial institution or a person
described in subdivision 4 does not require use of the broker to obtain credit; or
(5) a commission, expense reimbursement, or other sum received by a financial institution
or a person described in subdivision 4 in connection with insurance described in subdivision
6.
(k) "Financial institution" means a state or federally chartered bank, a state or federally
chartered bank and trust, a trust company with banking powers, a state or federally chartered
saving bank, a state or federally chartered savings association, an industrial loan and thrift
company organized under chapter 53,new text begin a sales finance company organized under chapter
53C,new text end a regulated lender organized under chapter 56,new text begin a mortgage originator or servicer
licensed under chapter 58,new text end or an operating subsidiary of any such institution.
(l) "Loan" means:
(1) the creation of debt by the financial institution's payment of money to the borrower
or a third person for the account of the borrower;
(2) the creation of debt pursuant to a credit card in any manner, including a cash advance
or the financial institution's honoring a draft or similar order for the payment of money
drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or
purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's
assignee;
(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of
credit arrangement;
(4) the creation of debt by a credit to an account with the financial institution upon which
the borrower is entitled to draw immediately;
(5) the forbearance of debt arising from a loan; and
(6) the creation of debt pursuant to open-end credit.
"Loan" does not include the forbearance of debt arising from a sale or lease, a credit
sale contract, or an overdraft from a person's deposit account with a financial institution
which is not pursuant to a written agreement to pay overdrafts with the right to defer
repayment thereof.
(m) "Official fees" means:
(1) fees and charges which actually are or will be paid to public officials for determining
the existence of or for perfecting, releasing, terminating, or satisfying a security interest or
mortgage relating to a loan or credit sale, and any separate fees or charges which actually
are or will be paid to public officials for recording a notice described in section 580.032,
subdivision 1; and
(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage
otherwise required by a financial institution in connection with a loan or credit sale, if the
premium does not exceed the fees and charges described in clause (1), which would otherwise
be payable.
(n) "Organization" means a corporation, government, government subdivision or agency,
trust, estate, partnership, joint venture, cooperative, limited liability company, limited
liability partnership, or association.
(o) "Person" means a natural person or an organization.
(p) "Principal" means the total of:
(1) the amount paid to, received by, or paid or repayable for the account of, the borrower;
and
(2) to the extent that payment is deferred:
(i) the amount actually paid or to be paid by the financial institution for additional charges
permitted under this section; and
(ii) prepaid finance charges.
Sec. 3.
Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the terms defined have the
meanings given them:
(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower
for the borrower's own personal, family, or household purpose. A consumer small loan is
a short-term, unsecured loan to be repaid in a single installment. The cash advance of a
consumer small loan is equal to or less than $350. A consumer small loan includes an
indebtedness evidenced by but not limited to a promissory note or agreement to defer the
presentation of a personal check for a fee.
(b) "Consumer small loan lender" is a financial institution as defined in section 47.59
or a business entity registered with the commissioner and engaged in the business of makingnew text begin
or arrangingnew text end consumer small loans.new text begin For purposes of this paragraph, arranging a consumer
small loan includes but is not limited to any substantial involvement to facilitate, market,
generate leads for, underwrite, or collect a consumer small loan.
new text end
(c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly
rate, that relates the amount and timing of value received by the consumer to the amount
and timing of payments made. Annual percentage rate includes all interest, finance charges,
and fees. The annual percentage rate must be determined in accordance with either the
actuarial method or the United States Rule method.
Sec. 4.
Minnesota Statutes 2024, section 53.04, subdivision 3a, is amended to read:
Subd. 3a.
Loans.
(a) The right to make loans, secured or unsecured, at the rates and on
the terms and other conditions permitted under chapters 47 and 334. Loans made under this
authority must be in amounts in compliance with section 53.05, clause (7). A licensee making
a loan under this chapter secured by a lien on real estate shall comply with the requirements
of section 47.20, subdivision 8. A licensee making a loan that is a consumer small loan, as
defined in section 47.60, subdivision 1, paragraph (a), must comply with section 47.60. A
licensee making a loan that is a consumer short-term loan, as defined in section 47.601,
subdivision 1, paragraph deleted text begin (d)deleted text end new text begin (e)new text end , must comply with section 47.601.
(b) Loans made under this subdivision may be secured by real or personal property, or
both. If the proceeds of a loan secured by a first lien on the borrower's primary residence
are used to finance the purchase of the borrower's primary residence, the loan must comply
with the provisions of section 47.20.
(c) An agency or instrumentality of the United States government or a corporation
otherwise created by an act of the United States Congress or a lender approved or certified
by the secretary of housing and urban development, or approved or certified by the
administrator of veterans affairs, or approved or certified by the administrator of the Farmers
Home Administration, or approved or certified by the Federal Home Loan Mortgage
Corporation, or approved or certified by the Federal National Mortgage Association, that
engages in the business of purchasing or taking assignments of mortgage loans and undertakes
direct collection of payments from or enforcement of rights against borrowers arising from
mortgage loans, is not required to obtain a certificate of authorization under this chapter in
order to purchase or take assignments of mortgage loans from persons holding a certificate
of authorization under this chapter.
(d) This subdivision does not authorize an industrial loan and thrift company to make
loans under an overdraft checking plan.
Sec. 5.
Minnesota Statutes 2024, section 53B.74, is amended to read:
53B.74 VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL
REQUIREMENTS.
(a) A licensee engaged in virtual currency business activities deleted text begin may include virtual currency
in the licensee's calculation of tangible net worth, by measuring the average value of the
virtual currency in United States dollar equivalent over the prior six months, excluding
control of virtual currency for a person entitled to the protections under section 53B.73.deleted text end new text begin is
not required to subtract virtual currency from total assets in the licensee's calculation of
tangible net worth if:
new text end
new text begin
(1) the licensee's day-to-day business includes incurring obligations to customers
denominated in the virtual currency;
new text end
new text begin
(2) the virtual currency asset has a corresponding liability denominated in the virtual
currency;
new text end
new text begin
(3) the virtual currency is unencumbered; and
new text end
new text begin
(4) the virtual currency assets that are not subtracted from total assets are limited to the
virtual currency assets that have a corresponding liability denominated in the same virtual
currency.
new text end
(b) A licensee must maintain, for all virtual-currency business activity with or on behalf
of a person five years after the date of the activity, a record of:
(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's
account in Minnesota, including:
(i) the identity of the person;
(ii) the form of the transaction;
(iii) the amount, date, and payment instructions given by the person; and
(iv) the account number, name, and United States Postal Service address of the person,
and, to the extent feasible, other parties to the transaction;
(2) the aggregate number of transactions and aggregate value of transactions by the
licensee with or on behalf of the person and for the licensee's account in this state, expressed
in the United States dollar equivalent of the virtual currency for the previous 12 calendar
months;
(3) each transaction in which the licensee exchanges one form of virtual currency for
money or another form of virtual currency with or on behalf of the person;
(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities,
capital, income, and expenses;
(5) each business-call report the licensee is required to create or provide to the department
or NMLS;
(6) bank statements and bank reconciliation records for the licensee and the name,
account number, and United States Postal Service address of each bank the licensee uses
to conduct virtual-currency business activity with or on behalf of the person;
(7) a report of any dispute with the person; and
(8) a report of any virtual-currency business activity transaction with or on behalf of a
person which the licensee was unable to complete.
(c) A licensee must maintain records required by paragraph (b) in a form that enables
the commissioner to determine whether the licensee is in compliance with this chapter, any
court order, and law of Minnesota other than this chapter.
Sec. 6.
Minnesota Statutes 2024, section 53C.09, subdivision 4, is amended to read:
Subd. 4.
Other law may apply.
In lieu of this section and sections 53C.01, subdivisions
2, 4, and 13; 53C.08; 53C.10; and 53C.11, a retail sellernew text begin or sales finance companynew text end may
proceed under section 47.59 deleted text begin relating to credit sales made by a third partydeleted text end new text begin , subdivisions 4,
4a, and 6new text end . In cases where the retail sellernew text begin or sales finance companynew text end proceeds under section
47.59, the remaining provisions of sections 53C.01 to 53C.14 apply notwithstanding section
47.59.
Sec. 7.
Minnesota Statutes 2024, section 56.002, is amended to read:
56.002 APPLICATION.
This chapter does not apply to a person doing business under and as permitted by any
law of this state or of the United States relating to banks, savings associations, trust
companies, licensed pawnbrokers,new text begin a residential mortgage originator or servicer licensed
under chapter 58 that offers residential mortgage origination services or residential mortgage
servicing,new text end or credit unions. Notwithstanding the provisions of section 56.01, an industrial
loan and thrift company under chapter 53 may contract for and receive the charges, including
those in section 56.155, authorized by this chapter without being licensed pursuant to this
chapter, but shall comply with all other provisions of this chapter when contracting for or
receiving charges on loans regulated by this chapter.
Sec. 8.
Minnesota Statutes 2024, section 56.01, is amended to read:
56.01 NECESSITY OF LICENSE.
(a) Except as authorized by this chapter and without first obtaining a license from the
commissioner, no person shall engage in the business of making loans of money, credit,
goods, or things in action, in an amount or of a value not exceeding that specified in section
56.131, subdivision 1, and charge, contract for, or receive on the loan a greater rate of
interest, discount, or consideration than the lender would be permitted by law to charge if
not a licensee under this chapter.new text begin A person must obtain a license from the commissioner
under this chapter before arranging a consumer short-term loan under section 47.601.
new text end
(b) An agency or instrumentality of the United States government or a corporation
otherwise created by an act of the United States Congress or a lender approved or certified
by the secretary of housing and urban development, or approved or certified by the
administrator of veterans affairs, or approved or certified by the administrator of the Farmers
Home Administration, or approved or certified by the Federal Home Loan Mortgage
Corporation, or approved or certified by the Federal National Mortgage Association, that
engages in the business of purchasing or taking assignments of mortgage loans and undertakes
direct collection of payments from or enforcement of rights against borrowers arising from
mortgage loans, is not required to be licensed under this chapter in order to purchase or take
assignments of mortgage loans from licensees under this chapter.
Sec. 9.
Minnesota Statutes 2024, section 56.05, is amended to read:
56.05 LICENSE; TO BE POSTED.
new text begin (a) new text end The license shall state the address at which the business is to be conducted and shall
state fully the name of the licensee, and if the licensee is a copartnership or association, the
names of the members thereof, and if a corporation, the date and place of its incorporation.
new text begin (b) new text end The license shall be kept conspicuously posted in the place of business of the licensee,
and shall not be transferable or assignable.new text begin For a licensee that offers service via the Internet,
the license number must be clearly displayed on each web page or other document required
by an order issued by the commissioner.
new text end
Sec. 10.
Minnesota Statutes 2024, section 58.06, subdivision 2, is amended to read:
Subd. 2.
Application contents.
(a) The application must contain the name and complete
business address or addresses of the license applicant. The license applicant must be a
partnership, limited liability partnership, association, limited liability company, corporation,
or other form of business organization, and the application must contain the names and
complete business addresses of each partner, member, director, and principal officer. The
application must also include a description of the activities of the license applicant, in the
detail and for the periods the commissioner may require.
(b) deleted text begin A residential mortgage originatordeleted text end new text begin Annew text end applicant must submit a surety bond that meets
the requirements of section 58.08, subdivision 1a.
(c) The application must also include all of the following:
(1) an affirmation under oath that the applicant:
(i) is in compliance with the requirements of section 58.125;
(ii) will advise the commissioner of any material changes to the information submitted
in the most recent application within ten days of the change;
(iii) will advise the commissioner in writing immediately of any bankruptcy petitions
filed against or by the applicant or licensee;
(iv) will maintain at all times a surety bond in the amount of at least deleted text begin $100,000deleted text end new text begin $125,000new text end ;
(v) complies with federal and state tax laws; and
(vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed property law;
(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;
(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;
(4) whether a court of competent jurisdiction has found that the applicant or persons in
control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under this
chapter;
(5) whether the applicant or persons in control of the applicant have been the subject of:
an order of suspension or revocation, cease and desist order, or injunctive order, or order
barring involvement in an industry or profession issued by this or another state or federal
regulatory agency or by the Secretary of Housing and Urban Development within the ten-year
period immediately preceding submission of the application; and
(6) other information required by the commissioner.
Sec. 11.
Minnesota Statutes 2024, section 58B.051, is amended to read:
58B.051 REGISTRATION FOR LENDERS.
(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
before providing services in Minnesota. A lender must not offer or make a student loan to
a resident of Minnesota without first registering with the commissioner as provided in this
section.
(b) A registration application must include:
(1) the lender's name;
(2) the lender's address;
(3) the names of all officers, directors, owners, or other persons in control of an applicant,
as defined in section 58B.02, subdivision 6; and
(4) any other information the commissioner requires deleted text begin by ruledeleted text end .
(c) Registration issued or renewed expires December 31 of each year. A lender must
renew the lender's registration on an annual basis.
(d) The commissioner may adopt and enforce:
(1) registration procedures for lenders, which may include using the Nationwide
Multistate Licensing System and Registry;
(2) nonrefundable registration fees for lenders, which may include fees for using the
Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;
(3) procedures and nonrefundable fees to renew a lender's registration, which may include
fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be
paid directly by the lender; and
(4) alternate registration procedures and nonrefundable fees for postsecondary education
institutions that offer student loans.
Sec. 12.
Minnesota Statutes 2024, section 332.52, subdivision 3, is amended to read:
Subd. 3.
Credit services organization.
(a) "Credit services organization" means any
person that, with respect to the extension of credit by others, sells, provides, performs, or
represents that the person will sell, provide, or perform, in return for the payment of money
or other valuable consideration, any of the following services:
(1) improve a buyer's credit record, history, or rating;
(2) obtain an extension of credit for a buyer; or
(3) provide advice or assistance to a buyer with regard to either clause (1) or (2).
(b) "Credit services organization" does not include:
(1) any person authorized to make loans or extensions of credit under the laws of this
state or the United States, if the person is subject to regulation and supervision by this state
or the United States or a lender approved by the United States Secretary of Housing and
Urban Development for participation in any mortgage insurance program under the National
Housing Act, United States Code, title 12, section 1701 et seq.;
(2) any bank, savings bank, or savings and loan institution whose deposits or accounts
are eligible for insurance by the Federal Deposit Insurance Corporation or a subsidiary of
the bank, savings bank, or savings and loan institution;
(3) any credit union, federal credit union, or out-of-state credit union doing business in
this state;
(4) any nonprofit organization exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31, 1990;
(5) any person deleted text begin licensed as a prorating agencydeleted text end new text begin registered as a debt management services
provider or debt settlement services providernew text end under the laws of this statenew text begin ,new text end if the person is
acting within the course and scope of deleted text begin that licensedeleted text end new text begin the applicable registrationnew text end ;
(6) any person licensed as a real estate broker by this state if the person is acting within
the course and scope of that license;
(7) any person licensed as a collection agency under the laws of this state if the person
is acting within the course and scope of that license;
(8) any person licensed to practice law in this state if the person renders services within
the course and scope of practice as an attorney;
(9) any broker-dealer registered with the Securities and Exchange Commission or the
Commodity Futures Trading Commission if the broker-dealer is acting within the course
and scope of that regulation; or
(10) any consumer reporting agency as defined in the federal Fair Credit Reporting Act,
United States Code, title 15, sections 1681 to 1681t, as amended through December 31,
1990.
Sec. 13.
Minnesota Statutes 2024, section 332A.04, subdivision 1, is amended to read:
Subdivision 1.
Form.
Application for registration to operate as a debt management
services provider in this state must be made in writing to the commissioner, under oath, in
the form prescribed by the commissioner, and must contain:
(1) the full name of each principal of the entity applying;
(2) the address, which must not be a post office box, and the telephone number and, if
applicable, email address, of the applicant;
(3) identification of the trust account required under section 332A.13;
(4) consent to the jurisdiction of the courts of this state;
(5) the name and address of the registered agent authorized to accept service of process
on behalf of the applicant or appointment of the commissioner as the applicant's agent for
purposes of accepting service of process;
(6) disclosure of:
(i) whether any controlling or affiliated party has ever been convicted of a crime or found
civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
other similar offense or violation, or any violation of a federal or state law or regulation in
connection with activities relating to the rendition of debt management services or involving
any consumer fraud, false advertising, deceptive trade practices, or similar consumer
protection law;
(ii) any judgments, private or public litigation, tax liens, written complaints, administrative
actions, or investigations by any government agency against the applicant or any officer,
director, manager, or shareholder owning more than five percent interest in the applicant,
unresolved or otherwise, filed or otherwise commenced within the preceding ten years;
(iii) whether the applicant or any person employed by the applicant has had a record of
having defaulted in the payment of money collected for others, including the discharge of
debts through bankruptcy proceedings; and
(iv) whether the applicant's license or registration to provide debt management services
in any other state has ever been revoked or suspended;
(7) a copy of the applicant's standard debt management services agreement that the
applicant intends to execute with debtors;new text begin and
new text end
deleted text begin
(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt
prorater immediately before August 1, 2007; and
deleted text end
deleted text begin (9)deleted text end new text begin (8)new text end any other information and material as the commissioner may require.
The commissioner may, for good cause shown, temporarily waive any requirement of
this subdivision.
Sec. 14.
Minnesota Statutes 2024, section 332B.04, subdivision 1, is amended to read:
Subdivision 1.
Form.
Application for registration to operate as a debt settlement services
provider in this state must be made in writing to the commissioner, under oath, in the form
prescribed by the commissioner, and must contain:
(1) the full name of each principal of the entity applying;
(2) the address, which must not be a post office box, and the telephone number and, if
applicable, email address of the applicant;
(3) consent to the jurisdiction of the courts of this state;
(4) the name and address of the registered agent authorized to accept service of process
on behalf of the applicant or appointment of the commissioner as the applicant's agent for
purposes of accepting service of process;
(5) disclosure of:
(i) whether any controlling or affiliated party has ever been convicted of a crime or found
civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
other similar offense or violation, or any violation of a federal or state law or regulation in
connection with activities relating to the rendition of debt settlement services or involving
any consumer fraud, false advertising, deceptive trade practices, or similar consumer
protection law;
(ii) any judgments, private or public litigation, tax liens, written complaints, administrative
actions, or investigations by any government agency against the applicant or any officer,
director, manager, or shareholder owning more than five percent interest in the applicant,
unresolved or otherwise, filed or otherwise commenced within the preceding ten years;
(iii) whether the applicant or any person employed by the applicant has had a record of
having defaulted in the payment of money collected for others, including the discharge of
debts through bankruptcy proceedings; and
(iv) whether the applicant's license or registration to provide debt settlement services in
any other state has ever been revoked or suspended;
(6) a copy of the applicant's standard debt settlement services agreement that the applicant
intends to execute with debtors;new text begin and
new text end
deleted text begin
(7) proof of accreditation, unless the applicant submits an affidavit attesting that the
applicant does not provide credit counseling services; and
deleted text end
deleted text begin (8)deleted text end new text begin (7)new text end any other information and material as the commissioner may require.
The commissioner may, for good cause shown, temporarily waive any requirement of
this subdivision.
Sec. 15. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 56.08; 332A.02, subdivision 2; and 332B.02,
subdivision 2,
new text end
new text begin
are repealed.
new text end
ARTICLE 4
HEALTH PLAN REGULATORY ALIGNMENT
Section 1.
new text begin
[60A.071] SUBSTANTIAL ENROLLMENT GROWTH; NOTIFICATION.
new text end
new text begin Subdivision 1. new text end
new text begin Notice required. new text end
new text begin
(a) No later than April 15 each year, an insurance
company that issues health plans, as defined in section 62A.011, and is licensed under this
chapter to offer, sell, or issue a policy of accident and sickness insurance, as defined in
section 62A.01, subdivision 1, or that is a nonprofit health service plan corporation operating
under chapter 62C must notify the commissioner if, for an insurance company or nonprofit
health service plan corporation with at least 25,000 enrollees, the insurance company or
nonprofit health service plan corporation:
new text end
new text begin
(1) increases the total number of enrollees, as of April 1 in the current calendar year, by
more than 35 percent of the insurance company's or nonprofit health service plan corporation's
total number of enrollees for the immediately preceding calendar year; or
new text end
new text begin
(2) increases the total number of enrollees in a specific line of business or product by a
percentage that is greater than the percentage of growth threshold established by the
commissioner for the specific line of business or product.
new text end
new text begin
(b) For purposes of this section, the number of enrollees must be calculated in a manner
consistent with the insurance company or nonprofit health service plan corporation's reported
covered lives in the company's National Association of Insurance Commissioners Annual
Statement.
new text end
new text begin Subd. 2. new text end
new text begin Additional information. new text end
new text begin
(a) Upon receiving notice under subdivision 1, the
commissioner may request and the insurance company or nonprofit health service plan
corporation must provide additional information regarding the insurance company's or
nonprofit health service plan corporation's financial readiness to serve the increased
enrollment. The additional information requested may include but is not limited to:
new text end
new text begin
(1) the conditions contributing to the insurance company's or nonprofit health service
plan corporation's enrollment growth;
new text end
new text begin
(2) a three-year projected statutory balance sheet, income statements, and cash flow
statements for the current year and the subsequent two years;
new text end
new text begin
(3) the key assumptions impacting the projections and the sensitivity of the projections
to the assumptions; and
new text end
new text begin
(4) a description of anticipated issues associated with the insurance company's or
nonprofit health service plan corporation's business, including but not limited to (i) assets,
(ii) anticipated business growth and associated surplus strain, (iii) significant change in risk
profile, (iv) mix of business, and (v) reinsurance use, if any, in each case.
new text end
new text begin
(b) If the information reported under paragraph (a) raises a concern with respect to an
insurance company's or nonprofit health service plan corporation's business on a prospective
basis due to anticipated business growth, including but not limited to anticipated business
growth, strain on surplus, increased exposure to risk, or an imbalanced mix of business, the
commissioner may issue a corrective order specifying corrective actions the commissioner
determines are required. A corrective order issued under this paragraph is subject to review
under chapter 14.
new text end
Sec. 2.
Minnesota Statutes 2024, section 60A.50, subdivision 1, is amended to read:
Sec. 3.
Minnesota Statutes 2024, section 60A.50, subdivision 3, is amended to read:
Subd. 3.
Commissioner.
"Commissioner" means the commissioner of commerce deleted text begin or the
commissioner of health, whichever commissioner otherwise regulates the health organizationdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 4.
new text begin
[60A.593] PROHIBITED ACTIVITIES.
new text end
new text begin
A domestic health organization that has a total adjusted capital equal to or less than the
domestic health organization's company action level RBC is prohibited from, without
receiving advance approval from the commissioner: (1) increasing the salary or benefits of
an officer or director, or (2) making preferential payment of bonuses, dividends, or other
payments the commissioner determines are preferential.
new text end
Sec. 5.
Minnesota Statutes 2024, section 60A.951, subdivision 3, is amended to read:
Subd. 3.
Commissioner.
"Commissioner" means the commissioner of commerce deleted text begin for
insurers regulated by the commissioner of commerce, and means the commissioner of health
for insurers regulated by the commissioner of healthdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 6.
Minnesota Statutes 2024, section 60A.985, subdivision 8, is amended to read:
Subd. 8.
Licensee.
"Licensee" means any person licensed, authorized to operate, or
registered, or required to be licensed, authorized, or registered by the Department of
Commerce deleted text begin or the Department of Healthdeleted text end under chapters 59A to 62M, 62Q to 62V, and 64B
to 79A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 7.
Minnesota Statutes 2024, section 60A.9853, subdivision 1, is amended to read:
Subdivision 1.
Notification to the commissioner.
Each licensee shall notify the
commissioner of commerce deleted text begin or commissioner of health, whichever commissioner otherwise
regulates the licensee,deleted text end without unreasonable delay but in no event later than five business
days from a determination that a cybersecurity event has occurred when either of the
following criteria has been met:
(1) this state is the licensee's state of domicile, in the case of an insurer, or this state is
the licensee's home state, in the case of a producer, as those terms are defined in chapter
60K and the cybersecurity event has a reasonable likelihood of materially harming:
(i) any consumer residing in this state; or
(ii) any part of the normal operations of the licensee; or
(2) the licensee reasonably believes that the nonpublic information involved is of 250
or more consumers residing in this state and that is either of the following:
(i) a cybersecurity event impacting the licensee of which notice is required to be provided
to any government body, self-regulatory agency, or any other supervisory body pursuant
to any state or federal law; or
(ii) a cybersecurity event that has a reasonable likelihood of materially harming:
(A) any consumer residing in this state; or
(B) any part of the normal operations of the licensee.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 8.
Minnesota Statutes 2024, section 60A.9854, is amended to read:
60A.9854 POWER OF COMMISSIONER.
(a) The commissioner of commerce deleted text begin or commissioner of health, whichever commissioner
otherwise regulates the licensee, shall havedeleted text end new text begin hasnew text end power to examine and investigate into the
affairs of any licensee to determine whether the licensee has been or is engaged in any
conduct in violation of sections 60A.985 to 60A.9857. This power is in addition to the
powers which the commissioner has under section 60A.031. Any such investigation or
examination shall be conducted pursuant to section 60A.031.
(b) Whenever the commissioner of commerce deleted text begin or commissioner of healthdeleted text end has reason to
believe that a licensee has been or is engaged in conduct in this state which violates sections
60A.985 to 60A.9857, the commissioner of commerce deleted text begin or commissioner of healthdeleted text end may take
action that is necessary or appropriate to enforce those sections.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 9.
Minnesota Statutes 2024, section 60B.03, subdivision 2, is amended to read:
Subd. 2.
Commissioner.
"Commissioner" means the commissioner of commerce deleted text begin of the
state of Minnesotadeleted text end and, in that commissioner's absence or disability, a deputy or other person
duly designated to act in that commissioner's place. deleted text begin In the context of rehabilitation or
liquidation of a health maintenance organization, "commissioner" means the commissioner
of health of the state of Minnesota and, in that commissioner's absence or disability, a deputy
or other person duly designated to act in that commissioner's place.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 10.
Minnesota Statutes 2024, section 60G.01, subdivision 2, is amended to read:
Subd. 2.
Commissioner.
"Commissioner" means the commissioner of commercedeleted text begin , except
that "commissioner" means the commissioner of health for administrative supervision of
health maintenance organizationsdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 11.
Minnesota Statutes 2024, section 60G.01, subdivision 4, is amended to read:
Subd. 4.
Department.
"Department" means the Department of Commercedeleted text begin , except that
"department" means the Department of Health for administrative supervision of health
maintenance organizationsdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 12.
Minnesota Statutes 2024, section 62A.02, subdivision 8, is amended to read:
Subd. 8.
Filing by health carriers for purposes of complying with the certification
requirements of MNsure.
No qualified health plan shall be offered through MNsure until
its form and the premium rates pertaining to the form have been approved by the
commissioner of commerce deleted text begin or health, as appropriate,deleted text end and the health plan has been determined
to comply with the certification requirements of MNsure in accordance with an agreement
between the commissioners of commerce and health and MNsure.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 13.
Minnesota Statutes 2024, section 62A.021, subdivision 1, is amended to read:
Subdivision 1.
Loss ratio standards.
(a) Notwithstanding section 62A.02, subdivision
3, relating to loss ratios, and except as otherwise authorized by section 62A.02, subdivision
3a, for individual policies or certificates, health care policies or certificates shall not be
delivered or issued for delivery to an individual or to a small employer as defined in section
62L.02, unless the policies or certificates can be expected, as estimated for the entire period
for which rates are computed to provide coverage, to return to Minnesota policyholders and
certificate holders in the form of aggregate benefits not including anticipated refunds or
credits, provided under the policies or certificates, (1) at least 75 percent of the aggregate
amount of premiums earned in the case of policies issued in the small employer market, as
defined in section 62L.02, subdivision 27, calculated on an aggregate basis; and (2) at least
65 percent of the aggregate amount of premiums earned in the case of each policy form or
certificate form issued in the individual market; calculated on the basis of incurred claims
experience or incurred health care expenses where coverage is provided by a health
maintenance organization on a service rather than reimbursement basis and earned premiums
for the period and according to accepted actuarial principles and practices. Assessments by
the reinsurance association created in chapter 62L and all types of taxes, surcharges, or
assessments created by Laws 1992, chapter 549, or created on or after April 23, 1992, are
included in the calculation of incurred claims experience or incurred health care expenses.
The applicable percentage for policies and certificates issued in the small employer market,
as defined in section 62L.02, increases by one percentage point on July 1 of each year,
beginning on July 1, 1994, until an 82 percent loss ratio is reached on July 1, 2000. The
applicable percentage for policy forms and certificate forms issued in the individual market
increases by one percentage point on July 1 of each year, beginning on July 1, 1994, until
a 72 percent loss ratio is reached on July 1, 2000. A health carrier that enters a market after
July 1, 1993, does not start at the beginning of the phase-in schedule and must instead
comply with the loss ratio requirements applicable to other health carriers in that market
for each time period. Premiums earned and claims incurred in markets other than the small
employer and individual markets are not relevant for purposes of this section.
(b) All filings of rates and rating schedules shall demonstrate that actual expected claims
in relation to premiums comply with the requirements of this section when combined with
actual experience to date. Filings of rate revisions shall also demonstrate that the anticipated
loss ratio over the entire future period for which the revised rates are computed to provide
coverage can be expected to meet the appropriate loss ratio standards, and aggregate loss
ratio from inception of the policy form or certificate form shall equal or exceed the
appropriate loss ratio standards.
(c) A health carrier that issues health care policies and certificates to individuals or to
small employers, as defined in section 62L.02, in this state shall file annually its rates, rating
schedule, and supporting documentation including ratios of incurred losses to earned
premiums by policy form or certificate form duration for approval by the commissioner
according to the filing requirements and procedures prescribed by the commissioner. The
supporting documentation shall also demonstrate in accordance with actuarial standards of
practice using reasonable assumptions that the appropriate loss ratio standards can be
expected to be met over the entire period for which rates are computed. The demonstration
shall exclude active life reserves. If the data submitted does not confirm that the health
carrier has satisfied the loss ratio requirements of this section, the commissioner shall notify
the health carrier in writing of the deficiency. The health carrier shall have 30 days from
the date of the commissioner's notice to file amended rates that comply with this section.
If the health carrier fails to file amended rates within the prescribed time, the commissioner
shall order that the health carrier's filed rates for the nonconforming policy form or certificate
form be reduced to an amount that would have resulted in a loss ratio that complied with
this section had it been in effect for the reporting period of the supplement. The health
carrier's failure to file amended rates within the specified time or the issuance of the
commissioner's order amending the rates does not preclude the health carrier from filing an
amendment of its rates at a later time. The commissioner shall annually make the submitted
data available to the public at a cost not to exceed the cost of copying. The data must be
compiled in a form useful for consumers who wish to compare premium charges and loss
ratios.
(d) Each sale of a policy or certificate that does not comply with the loss ratio
requirements of this section is an unfair or deceptive act or practice in the business of
insurance and is subject to the penalties in sections 72A.17 to 72A.32.
(e)(1) For purposes of this section, health care policies issued as a result of solicitations
of individuals through the mail or mass media advertising, including both print and broadcast
advertising, shall be treated as individual policies.
(2) For purposes of this section, (i) "health care policy" or "health care certificate" is a
health plan as defined in section 62A.011; and (ii) "health carrier" has the meaning given
in section 62A.011 and includes all health carriers delivering or issuing for delivery health
care policies or certificates in this state or offering these policies or certificates to residents
of this state.
(f) The loss ratio phase-in as described in paragraph (a) does not apply to individual
policies and small employer policies issued by a health plan company that is assessed less
than three percent of the total annual amount assessed by the Minnesota Comprehensive
Health Association. These policies must meet a 68 percent loss ratio for individual policies,
a 71 percent loss ratio for small employer policies with fewer than ten employees, and a 75
percent loss ratio for all other small employer policies.
(g) Notwithstanding paragraphs (a) and (f), the loss ratio shall be 60 percent for a health
plan as defined in section 62A.011, offered by an insurance company licensed under chapter
60A that is assessed less than ten percent of the total annual amount assessed by the
Minnesota Comprehensive Health Association. For purposes of the percentage calculation
of the association's assessments, an insurance company's assessments include those of its
affiliates.
(h) The deleted text begin commissionersdeleted text end new text begin commissionernew text end of commerce deleted text begin and health shall eachdeleted text end new text begin mustnew text end annually
issue a public report listing, by health plan company, the actual loss ratios experienced in
the individual and small employer markets in this state deleted text begin by the health plan companies that
the commissioners respectively regulate. The commissioners shall coordinate release of
these reports so as to release them as a joint report or as separate reports issued the same
daydeleted text end . The report or reports shall be released no later than June 1 for loss ratios experienced
for the preceding calendar year. Health plan companies shall provide to the deleted text begin commissionersdeleted text end new text begin
commissionernew text end any information requested by the deleted text begin commissionersdeleted text end new text begin commissionernew text end for purposes
of this paragraph.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 14.
Minnesota Statutes 2024, section 62A.61, is amended to read:
62A.61 DISCLOSURE OF METHODS USED BY HEALTH CARRIERS TO
DETERMINE USUAL AND CUSTOMARY FEES.
(a) A health carrier that bases reimbursement to health care providers upon a usual and
customary fee must maintain in its office a copy of a description of the methodology used
to calculate fees including at least the following:
(1) the frequency of the determination of usual and customary fees;
(2) a general description of the methodology used to determine usual and customary
fees; and
(3) the percentile of usual and customary fees that determines the maximum allowable
reimbursement.
(b) A health carrier must provide a copy of the information described in paragraph (a)
to the commissioner of health or the commissioner of commerce, upon request.
(c) The deleted text begin commissioner of health or thedeleted text end commissioner of commercedeleted text begin , as appropriate,deleted text end may
use deleted text begin to enforce this sectiondeleted text end any enforcement powers otherwise available to the commissioner
with respect to the health carriernew text begin to enforce this sectionnew text end . The commissioner of deleted text begin health ordeleted text end
commercedeleted text begin , as appropriate,deleted text end may require health carriers to provide the information required
under this section and may use any powers granted under other laws relating to the regulation
of health carriers to enforce compliance.
(d) For purposes of this section, "health carrier" has the meaning given in section
62A.011.
(e) "Usual and customary" means the normal charge, in the absence of insurance, of the
provider for a service or article, but not more than the prevailing charge in the area for like
service or article. A "like service" is the same nature and duration, requires the same skill,
and is performed by a provider of similar training and experience. A "like article" is one
that is identically or substantially equivalent. "Area" means the municipality or, in the case
of a large city, a subdivision of the city, in which the service or article is actually provided
or a greater area as is necessary to obtain a representative cross-section of charges for like
service or article.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 15.
Minnesota Statutes 2024, section 62A.65, subdivision 7, is amended to read:
Subd. 7.
Short-term coverage.
(a) For purposes of this section, "short-term coverage"
means an individual health plan that:
(1) is issued to provide coverage for a period of 185 days or less, except that the health
plan may permit coverage to continue until the end of a period of hospitalization for a
condition for which the covered person was hospitalized on the day that coverage would
otherwise have ended;
(2) is nonrenewable, provided that the health carrier may provide coverage for one or
more subsequent periods that satisfy clause (1), if the total of the periods of coverage do
not exceed a total of 365 days out of any 555-day period, plus any additional days covered
as a result of hospitalization on the day that a period of coverage would otherwise have
ended;
(3) does not cover any preexisting conditions, including ones that originated during a
previous identical policy or contract with the same health carrier where coverage was
continuous between the previous and the current policy or contract; and
(4) is available with an immediate effective date without underwriting upon receipt of
a completed application indicating eligibility under the health carrier's eligibility
requirements, provided that coverage that includes optional benefits may be offered on a
basis that does not meet this requirement.
(b) Short-term coverage is not subject to subdivisions 2 and 5. Short-term coverage may
exclude as a preexisting condition any injury, illness, or condition for which the covered
person had medical treatment, symptoms, or any manifestations before the effective date
of the coverage, but dependent children born or placed for adoption during the policy period
must not be subject to this provision.
(c) Notwithstanding subdivision 3, and section 62A.021, a health carrier may combine
short-term coverage with its most commonly sold individual qualified plan, as defined in
section 62E.02, other than short-term coverage, for purposes of complying with the loss
ratio requirement.
(d) The 365-day coverage limitation provided in paragraph (a) applies to the total number
of days of short-term coverage that covers a person, regardless of the number of policies,
contracts, or health carriers that provide the coverage. A written application for short-term
coverage must ask the applicant whether the applicant has been covered by short-term
coverage by any health carrier within the 555 days immediately preceding the effective date
of the coverage being applied for. Short-term coverage issued in violation of the 365-day
limitation is valid until the end of its term and does not lose its status as short-term coverage,
in spite of the violation. A health carrier that knowingly issues short-term coverage in
violation of the 365-day limitation is subject to the administrative penalties otherwise
available to the commissioner of commerce deleted text begin or the commissioner of health, as appropriatedeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 16.
Minnesota Statutes 2024, section 62A.65, subdivision 8, is amended to read:
Subd. 8.
Cessation of individual business.
Notwithstanding the provisions of
subdivisions 1 to 7, a health carrier may elect to cease doing business in the individual health
plan market in this state if it complies with the requirements of this subdivision. For purposes
of this section, "cease doing business" means to discontinue issuing new individual health
plans and to refuse to renew all of the health carrier's existing individual health plans issued
in this state whose terms permit refusal to renew under the circumstances specified in this
subdivision. This subdivision does not permit cancellation of an individual health plan,
unless the terms of the health plan permit cancellation under the circumstances specified in
this subdivision. A health carrier electing to cease doing business in the individual health
plan market in this state shall notify the commissioner 180 days prior to the effective date
of the cessation. Within 30 days after the termination, the health carrier shall submit to the
commissioner a complete list of policyholders that have been terminated. The cessation of
business does not include the failure of a health carrier to offer or issue new business in the
individual health plan market or continue an existing product line in that market, provided
that a health carrier does not terminate, cancel, or fail to renew its current individual health
plan business. A health carrier electing to cease doing business in the individual health plan
market shall provide 120 days' written notice to each policyholder covered by an individual
health plan issued by the health carrier. This notice must also inform each policyholder of
the existence of the Minnesota Comprehensive Health Association, the requirements for
being accepted, the procedures for applying for coverage, and the telephone numbers at the
deleted text begin Department of Health and thedeleted text end Department of Commerce for information about private
individual or family health coverage. A health carrier that ceases to write new business in
the individual health plan market shall continue to be governed by this section with respect
to continuing individual health plan business conducted by the health carrier. A health carrier
that ceases to do business in the individual health plan market after July 1, 1994, is prohibited
from writing new business in the individual health plan market in this state for a period of
five years from the date of notice to the commissioner. This subdivision applies to any
health maintenance organization that ceases to do business in the individual health plan
market in one service area with respect to that service area only. Nothing in this subdivision
prohibits an affiliated health maintenance organization from continuing to do business in
the individual health plan market in that same service area. The right to refuse to renew an
individual health plan under this subdivision does not apply to individual health plans issued
on a guaranteed renewable basis that does not permit refusal to renew under the circumstances
specified in this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 17.
new text begin
[62D.015] REGULATORY DUTIES; TRANSFER.
new text end
new text begin Subdivision 1. new text end
new text begin Transfer and restructuring. new text end
new text begin
(a) The regulatory oversight with respect
to health maintenance organizations transfers from the commissioner of health to the
commissioner of commerce on July 1, 2027.
new text end
new text begin
(b) The agency restructuring under this section must be conducted in accordance with
sections 15.039 and 43A.045.
new text end
new text begin Subd. 2. new text end
new text begin Succession; employees; liability. new text end
new text begin
(a) Employees related to the functions
assigned to the commissioner of health are transferred to the Department of Commerce 30
days after the date the commissioner of health approves the transfer.
new text end
new text begin
(b) An employee transferred under paragraph (a):
new text end
new text begin
(1) must not have the employee's employment status or job classification altered as a
result of the transfer;
new text end
new text begin
(2) if represented by an exclusive representative before the transfer, remains represented
by the same exclusive representative after the transfer occurs;
new text end
new text begin
(3) if an applicable collective bargaining agreement with an exclusive representative
was effective before the transfer, remains subject to the collective bargaining agreement
for the remainder of the agreement's term; and
new text end
new text begin
(4) if employed in a temporary unclassified position, the total length of time that the
employee has served in the appointment includes all time served in the appointment at the
transferring agency and the time served in the appointment at the department. An employee
in a temporary unclassified position who was hired by a transferring agency through an
open competitive selection process in accordance with a policy enacted by the commissioner
of management and budget is considered to have been hired through an open competitive
selection process after the transfer.
new text end
new text begin
(c) The state must meet and negotiate with the exclusive representatives of transferred
employees regarding proposed changes that affect or relate to the transferred employees'
terms and conditions of employment to the extent that the proposed changes are not addressed
in the applicable collective bargaining agreement.
new text end
new text begin
(d) If the state transfers ownership or control of a department facility, service, or operation
to a private or public entity by subcontracting, sale, assignment, lease, or other transfer, the
state must require as a written condition of the transfer of ownership or control:
new text end
new text begin
(1) an employee who performs work in the facility, service, or operation must be offered
employment with the entity acquiring ownership or control before the entity offers
employment to another individual who was not employed by the transferring agency at the
time the transfer occurs; and
new text end
new text begin
(2) the entity acquiring ownership or control is prohibited from reducing the transferred
employee's wage and benefit standards until the collective bargaining agreement in effect
at the time the transfer occurs expires or for a period of two years after the transfer occurs,
whichever is longer.
new text end
new text begin
(e) The state of Minnesota and the state's officers or agents are not liable for and are not
subject to a cause of action arising from the action or inaction of an entity acquiring
ownership or control of a department facility, service, or operation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 18.
Minnesota Statutes 2024, section 62D.08, subdivision 1, is amended to read:
Subdivision 1.
Notice of changes.
A health maintenance organization shall, unless
otherwise provided for by rules adopted by the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end , file
notice with the commissioner of deleted text begin health prior to any modification ofdeleted text end new text begin commerce before
modifyingnew text end the operations or documents described in the information submitted undernew text begin section
62D.03, subdivision 4,new text end clauses (a), (b), (e), (f), (g), (i), (j), (l), (m), (n), (o), (p), (q), (r), (s),
and (t) deleted text begin of section 62D.03, subdivision 4deleted text end . If the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end does not
disapprove of the filing within 60 days, it shall be deemed approved and may be implemented
by the health maintenance organization.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 19.
Minnesota Statutes 2024, section 62D.08, subdivision 2, is amended to read:
Subd. 2.
Annual report required.
Every health maintenance organization shall annually,
on or before April 1, file a verified report with the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end
covering the preceding calendar year. However, utilization data required under subdivision
3, clause (c), shall be filed on or before July 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 20.
Minnesota Statutes 2024, section 62D.08, subdivision 3, is amended to read:
Subd. 3.
Report requirements.
deleted text begin Suchdeleted text end new text begin Thenew text end report shall benew text begin submittednew text end on forms prescribed
by the commissioner of deleted text begin health,deleted text end new text begin commercenew text end and shall include:
(a) a financial statement of the organization, including its balance sheet and receipts and
disbursements for the preceding year certified by an independent certified public accountant,
reflecting at least (1) all prepayment and other payments received for health care services
rendered, (2) expenditures to all providers, by classes or groups of providers, and insurance
companies or nonprofit health service plan corporations engaged to fulfill obligations arising
out of the health maintenance contract, (3) expenditures for capital improvements, or
additions thereto, including but not limited to construction, renovation or purchase of
facilities and capital equipment, and (4) a supplementary statement of assets, liabilities,
premium revenue, and expenditures for risk sharing business under section 62D.04,
subdivision 1, on forms prescribed by the commissioner;
(b) the number of new enrollees enrolled during the year, the number of group enrollees
and the number of individual enrollees as of the end of the year and the number of enrollees
terminated during the year;
(c) a summary of information compiled pursuant to section 62D.04, subdivision 1, clause
(c), in such form as may be required by the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end ;
(d) a report of the names and addresses of all persons set forth in section 62D.03,
subdivision 4, clause (c), who were associated with the health maintenance organization or
the major participating entity during the preceding year, and the amount of wages, expense
reimbursements, or other payments to such individuals for services to the health maintenance
organization or the major participating entity, as those services relate to the health
maintenance organization, including a full disclosure of all financial arrangements during
the preceding year required to be disclosed pursuant to section 62D.03, subdivision 4, clause
(d);
(e) a separate report addressing health maintenance contracts sold to individuals covered
by Medicare, title XVIII of the Social Security Act, as amended, including the information
required under section 62D.30, subdivision 6;
(f) data on the number of complaints received and the category of each complaint as
defined by the commissioner. The categories must include access, communication and
behavior, health plan administration, facilities and environment, coordination of care, and
technical competence and appropriateness. The commissioner, in consultation with interested
stakeholders, shall define complaint categories to be used by each health maintenance
organization by July 1, 2017, and the categories must be used by each health maintenance
organization beginning calendar year 2018; and
(g) such other information relating to the performance of the health maintenance
organization as is reasonably necessary to enable the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end to
carry out the duties under sections 62D.01 to 62D.30.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 21.
Minnesota Statutes 2024, section 62D.08, subdivision 7, is amended to read:
Subd. 7.
Consistent administrative expenses and investment income reporting.
(a)
Every health maintenance organization must directly allocate administrative expenses to
specific lines of business or products when such information is available. Remaining expenses
that cannot be directly allocated must be allocated based on other methods, as recommended
by the Advisory Group on Administrative Expenses. Health maintenance organizations
must submit this information, including administrative expenses for dental services, using
the reporting template provided by the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end .
(b) Every health maintenance organization must allocate investment income based on
cumulative net income over time by business line or product and must submit this
information, including investment income for dental services, using the reporting template
provided by the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 22.
Minnesota Statutes 2024, section 62D.08, is amended by adding a subdivision to
read:
new text begin Subd. 8. new text end
new text begin Information sharing. new text end
new text begin
The commissioner of commerce must share nonpublic
data submitted by health maintenance organizations under this section with (1) the
commissioner of health and the commissioner of human services, (2) other state and federal
regulatory agencies, and (3) the National Association of Insurance Commissioners, if the
requesting recipient under clauses (1) to (3) agrees to maintain the data in a manner consistent
with the data's classification under chapter 13. The commissioner of commerce may enter
into agreements governing the sharing and use of information, provided the agreements are
consistent with this subdivision.
new text end
Sec. 23.
new text begin
[62D.085] SUBSTANTIAL ENROLLMENT GROWTH; NOTICE.
new text end
new text begin Subdivision 1. new text end
new text begin Notice required. new text end
new text begin
(a) No later than April 15 each year, a health
maintenance organization that is operating under this chapter and that has at least 25,000
enrollees must notify the commissioner if the health maintenance organization:
new text end
new text begin
(1) increases the total number of enrollees, as of April 1 in the current calendar year, by
more than 35 percent of the health maintenance organization's total number of enrollees for
the immediately preceding calendar year; or
new text end
new text begin
(2) increases the total number of enrollees in a specific line of business or product by a
percentage that is greater than the percentage of growth threshold established by the
commissioner for the specific line of business or product.
new text end
new text begin
(b) For purposes of this section, the number of enrollees must be calculated in a manner
consistent with the health maintenance organization's reported covered lives in the company's
National Association of Insurance Commissioners Annual Statement.
new text end
new text begin Subd. 2. new text end
new text begin Additional information. new text end
new text begin
(a) Upon receiving notice under subdivision 1, the
commissioner may request and the health maintenance organization must provide additional
information regarding the health maintenance organization's financial readiness to serve
the increased enrollment. The additional information requested may include but is not limited
to:
new text end
new text begin
(1) the conditions contributing to the health maintenance organization's enrollment
growth;
new text end
new text begin
(2) a three-year projected statutory balance sheet, income statements, and cash flow
statements for the current year and the subsequent two years;
new text end
new text begin
(3) the key assumptions impacting the projections and the sensitivity of the projections
to the assumptions; and
new text end
new text begin
(4) a description of anticipated issues associated with the health maintenance
organization's business, including but not limited to (i) assets, (ii) anticipated business
growth and associated surplus strain, (iii) significant change in risk profile, (iv) mix of
business, and (v) reinsurance use, if any, in each case.
new text end
new text begin
(b) If the information reported under paragraph (a) raises a concern with respect to a
health maintenance organization's business on a prospective basis due to anticipated business
growth, including but not limited to anticipated business growth, strain on surplus, increased
exposure to risk, or an imbalanced mix of business, the commissioner may issue a corrective
order specifying corrective actions the commissioner determines are required. A corrective
order issued under this paragraph is subject to review under chapter 14.
new text end
Sec. 24.
Minnesota Statutes 2024, section 62D.12, subdivision 1, is amended to read:
Subdivision 1.
False representations.
No health maintenance organization or
representative thereof may cause or knowingly permit the use of advertising or solicitation
which is untrue or misleading, or any form of evidence of coverage which is deceptive.
Each health maintenance organization deleted text begin shall bedeleted text end new text begin isnew text end subject to sections 72A.17 to 72A.32deleted text begin ,
relating to the regulation of trade practices, except (a) to the extent that the nature of a health
maintenance organization renders such sections clearly inappropriate and (b) that enforcement
shall be by the commissioner of health and not by the commissioner of commercedeleted text end . Every
health maintenance organization deleted text begin shall bedeleted text end new text begin isnew text end subject to sections 8.31 and 325F.69.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 25.
Minnesota Statutes 2024, section 62D.124, subdivision 5, is amended to read:
Subd. 5.
Provider networks.
The deleted text begin commissioner of health, thedeleted text end commissioner of
commercedeleted text begin ,deleted text end and the commissioner of human services shall merge reporting requirements
for health maintenance organizations and county-based purchasing plans related to Minnesota
Department of deleted text begin Healthdeleted text end new text begin Commercenew text end oversight of network adequacy under this section and the
provider network list reported to the Department of Human Services under Minnesota Rules,
part 4685.2100. The commissioners shall work with health maintenance organizations and
county-based purchasing plans to ensure that the report merger is done in a manner that
simplifies health maintenance organization and county-based purchasing plan reporting
processes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 26.
Minnesota Statutes 2025 Supplement, section 62D.21, is amended to read:
62D.21 FEES.
Every health maintenance organization subject to sections 62D.01 to 62D.30 shall pay
to the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end the following fees:
(1) filing an application for a certificate of authority: $10,000;
(2) filing an amendment to a certificate of authority: $125;
(3) filing each annual report: $400;
(4) filing each quarterly report: $200; and
(5) filing annual plan review documents, amendments to plan documents, and quality
plans: $125.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 27.
Minnesota Statutes 2025 Supplement, section 62D.211, is amended to read:
62D.211 RENEWAL FEE.
Each health maintenance organization subject to sections 62D.01 to 62D.30 shall submit
to the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end each year before June 15 a certificate of authority
renewal fee in the amount of $30,000 each plus 88 cents per person enrolled in the health
maintenance organization on December 31 of the preceding year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 28.
new text begin
[62D.212] HEALTH MAINTENANCE ORGANIZATION REGULATION
ACCOUNT.
new text end
new text begin
(a) A health maintenance organization regulation account is established as a separate
account in the special revenue fund in the state treasury. The commissioner of commerce
must credit to the account filing fees and renewal fees collected under sections 62D.21 and
62D.211, appropriations and transfers, and other revenue related to the activities identified
in paragraph (b). Earnings, including interest, dividends, other earnings arising from the
account's assets, and remaining money from fiscal years occurring before July 1, 2027, must
be credited to the account. The commissioner of commerce must manage the account.
new text end
new text begin
(b) Money in the account is appropriated to the commissioner of commerce to administer
this chapter and to reimburse the department's costs incurred to administer this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 29.
Minnesota Statutes 2024, section 62D.221, subdivision 1, is amended to read:
Subdivision 1.
Insurance provisions applicable to health maintenance
organizations.
Health maintenance organizations are subject to sections 60A.135, 60A.136,
60A.137, 60A.16, 60A.161, 60D.17, 60D.18, and 60D.20 and must comply with the
provisions of these sections applicable to insurers. In applying these sections to health
maintenance organizations, "commissioner" means the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end .
Health maintenance organizations are subject to Minnesota Rules, chapter 2720, as applicable
to sections 60D.17, 60D.18, and 60D.20, and must comply with the provisions of chapter
2720 applicable to insurers, unless the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end adopts rules to
implement this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 30.
Minnesota Statutes 2024, section 62D.221, subdivision 2, is amended to read:
Subd. 2.
Statement.
In addition to the conditions in section 60D.17, subdivision 1,
subjecting a health maintenance organization to filing requirements, no person other than
the issuer shall acquire all or substantially all of the assets of a domestic nonprofit health
maintenance organization through any means unless at the time the offer, request, or
invitation is made or the agreement is entered into the person has filed with the commissioner
and has sent to the health maintenance organization a statement containing the information
required in section 60D.17 and the offer, request, invitation, agreement, or acquisition has
been approved by the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end in the manner prescribed in section
60D.17.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 31.
Minnesota Statutes 2024, section 62E.11, subdivision 9, is amended to read:
Subd. 9.
Special assessment upon termination of individual health coverage.
new text begin (a)
new text end Each contributing member that terminates individual health coverage for reasons other than
deleted text begin (a)deleted text end new text begin (1)new text end nonpayment of premium; deleted text begin (b)deleted text end new text begin (2)new text end failure to make co-payments; deleted text begin (c)deleted text end new text begin (3)new text end enrollee moving
out of the area served; or deleted text begin (d)deleted text end new text begin (4)new text end a materially false statement or misrepresentation by the
enrollee in the application for membership; and does not provide or arrange for replacement
coverage that meets the requirements of section 62D.121; shall pay a special assessment to
the state plan based upon the number of terminated individuals who join the comprehensive
health insurance plan as authorized under section 62E.14, subdivisions 1, paragraph (d),
and 6. Such a contributing member shall pay the association an amount equal to the average
cost of an enrollee in the state plan in the year in which the member terminated enrollees
multiplied by the total number of terminated enrollees who enroll in the state plan.
new text begin (b) new text end The average cost of an enrollee in the state comprehensive health insurance plan
shall be determined by dividing the state plan's total annual losses by the total number of
enrollees from that year. This cost will be assessed to the contributing member who has
terminated health coverage before the association makes the annual determination of each
contributing member's liability as required under this section.
new text begin (c) new text end In the event that the contributing member is terminating health coverage because of
a loss of health care providers, the commissioner may review whether or not the special
assessment established under this subdivision will have an adverse impact on the contributing
member or its enrollees or insureds, including but not limited to causing the contributing
member to fall below statutory net worth requirements. If the commissioner determines that
the special assessment would have an adverse impact on the contributing member or its
enrollees or insureds, the commissioner may adjust the amount of the special assessment,
or establish alternative payment arrangements to the state plan. For health maintenance
organizations regulated under chapter 62D, the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end shall
make the determination regarding any adjustment in the special assessment deleted text begin and shall transmit
that determination to the commissioner of commercedeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 32.
Minnesota Statutes 2024, section 62E.11, subdivision 13, is amended to read:
Subd. 13.
State funding; effect on premium rates of members.
In approving the
premium rates as required in sections 62A.65, subdivision 3; and 62L.08, subdivision 8,
the deleted text begin commissionersdeleted text end new text begin commissionernew text end of deleted text begin health anddeleted text end commerce shall ensure that any appropriation
to reduce the annual assessment made on the contributing members to cover the costs of
the Minnesota comprehensive health insurance plan as required under this section is reflected
in the premium rates charged by each contributing member.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 33.
Minnesota Statutes 2024, section 62J.40, is amended to read:
62J.40 COST CONTAINMENT DATA FROM STATE AGENCIES AND OTHER
GOVERNMENTAL UNITS.
(a) All state departments or agencies that administer one or more health care programs
shall provide to the commissioner of health any additional data on the health care programs
they administer that is requested by the commissioner of health, including data in
unaggregated form, for purposes of developing estimates of spending, setting spending
limits, and monitoring actual spending. The data must be provided at the times and in the
form specified by the commissioner of health.
(b) For purposes of estimating total health care spending as provided in section 62J.301,
subdivision 4, clause (c), all local governmental units shall provide expenditure data to the
commissioner. The commissioner shall consult with representatives of the affected local
government units in establishing definitions, reporting formats, and reporting time frames.
As much as possible, the data shall be collected in a manner that ensures that the data
collected is consistent with data collected from the private sector and minimizes the reporting
burden to local government.
new text begin
(c) A state agency that purchases health care services, provides oversight over health
insurance rates, collects health care taxes, or regulates health care entities must provide to
the commissioner nonpublic data the commissioner requests to satisfy statutory duties under
sections 62J.301 to 62J.461, 62J.84, 62J.87, 62U.01 to 62U.10, 144.70, 145D.01, and
145D.02, with respect to monitoring the health care market, including but not limited to
consolidation, transaction, corporate structure, utilization, quality, spending growth, and
prescription drug supply chains.
new text end
new text begin
(d) The commissioner of commerce may request unique or custom data sets from a state
agency in a request under paragraph (c). The state agency may charge the commissioner of
commerce a fee to provide data sets under paragraph (c) at the same rate the state agency
charges another public or private entity for the same data.
new text end
new text begin
(e) Data provided to the commissioner under paragraph (c) retains the data's original
classification under chapter 13. Data provided to the commissioner under paragraph (c)
may be included in public reports if the data are aggregated and deidentified.
new text end
Sec. 34.
Minnesota Statutes 2024, section 62J.60, subdivision 5, is amended to read:
Subd. 5.
Annual reporting.
As part of an annual filing made with the commissioner of
deleted text begin health ordeleted text end commerce deleted text begin on or after January 1, 2003deleted text end , a group purchaser shall certify compliance
with this section and shall submit to the commissioner of deleted text begin health ordeleted text end commerce a copy of the
Minnesota uniform health care identification card used by the group purchaser.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 35.
Minnesota Statutes 2024, section 62K.07, subdivision 2, is amended to read:
Subd. 2.
Prescription drug costs.
(a) Each health carrier that offers a prescription drug
benefit in its individual health plans or small group health plans shall include in the applicable
rate filing required under section 62A.02 the following information about covered prescription
drugs:
(1) the 25 most frequently prescribed drugs in the previous plan year;
(2) the 25 most costly prescription drugs as a portion of the individual health plan's or
small group health plan's total annual expenditures in the previous plan year;
(3) the 25 prescription drugs that have caused the greatest increase in total individual
health plan or small group health plan spending in the previous plan year;
(4) the projected impact of the cost of prescription drugs on premium rates;
(5) if any health plan offered by the health carrier requires enrollees to pay cost-sharing
on any covered prescription drugs including deductibles, co-payments, or coinsurance in
an amount that is greater than the amount the enrollee's health plan would pay for the drug
absent the applicable enrollee cost-sharing and after accounting for any rebate amount; and
(6) if the health carrier prohibits third-party payments including manufacturer drug
discounts or coupons that cover all or a portion of an enrollee's cost-sharing requirements
including deductibles, co-payments, or coinsurance from applying toward the enrollee's
cost-sharing obligations under the enrollee's health plan.
(b) The commissioner of commercenew text begin must share reported data with the commissioner of
health andnew text end , in consultation with the commissioner of health, shall release a summary of the
information reported in paragraph (a) at the same time as the information required under
section 62A.02, subdivision 2, paragraph (c).
Sec. 36.
Minnesota Statutes 2024, section 62L.02, subdivision 8, is amended to read:
Subd. 8.
Commissioner.
"Commissioner" means the commissioner of commerce deleted text begin for
health carriers subject to the jurisdiction of the Department of Commerce or the commissioner
of health for health carriers subject to the jurisdiction of the Department of Health, or the
relevant commissioner's designated representative. For purposes of sections 62L.13 to
62L.22, "commissioner" means the commissioner of commerce or that commissioner's
designated representativedeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 37.
Minnesota Statutes 2024, section 62L.08, subdivision 11, is amended to read:
Subd. 11.
Loss ratio standards.
Notwithstanding section 62A.02, subdivision 3, relating
to loss ratios, each policy or contract form used with respect to a health benefit plan offered,
or issued in the small employer market, is subject, beginning July 1, 1993, to section 62A.021.
deleted text begin The commissioner of health has, with respect to carriers under that commissioner's
jurisdiction, all of the powers of the commissioner of commerce under that section.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 38.
Minnesota Statutes 2024, section 62L.09, subdivision 3, is amended to read:
Subd. 3.
Reentry prohibition.
(a) Except as otherwise provided in paragraph (b), a
health carrier that ceases to do business in the small employer market after July 1, 1993, is
prohibited from writing new business in the small employer market in this state for a period
of five years from the date of notice to the commissioner. This subdivision applies to any
health maintenance organization that ceases to do business in the small employer market
in one service area with respect to that service area only. Nothing in this subdivision prohibits
an affiliated health maintenance organization from continuing to do business in the small
employer market in that same service area.
(b) The commissioner of commerce deleted text begin or the commissioner of healthdeleted text end may permit a health
carrier that ceases to do business in the small employer market in this state after July 1,
1993, to begin writing new business in the small employer market if:
(1) since the carrier ceased doing business in the small employer market, legislative
action has occurred that has significantly changed the effect on the carrier of its decision to
cease doing business in the small employer market; and
(2) the commissioner deems it appropriate.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 39.
Minnesota Statutes 2024, section 62L.10, subdivision 4, is amended to read:
Subd. 4.
Review of premium rates.
The commissioner shall regulate premium rates
charged or proposed to be charged by all health carriers in the small employer market under
section 62A.02. deleted text begin The commissioner of health has, with respect to carriers under that
commissioner's jurisdiction, all of the powers of the commissioner of commerce under that
section.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 40.
Minnesota Statutes 2024, section 62L.11, subdivision 2, is amended to read:
Subd. 2.
Enforcement powers.
The deleted text begin commissionersdeleted text end new text begin commissionernew text end of deleted text begin health anddeleted text end
commerce deleted text begin eachdeleted text end hasnew text begin ,new text end for purposes of this chapternew text begin ,new text end all of deleted text begin eachdeleted text end new text begin thenew text end commissioner's deleted text begin respectivedeleted text end
powers under other chapters that are applicable to deleted text begin their respectivedeleted text end new text begin the commissioner'snew text end duties
under this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 41.
Minnesota Statutes 2024, section 62M.11, is amended to read:
62M.11 COMPLAINTS TO COMMERCE deleted text begin OR HEALTHdeleted text end .
Notwithstanding the provisions of this chapter, an enrollee may file a complaint regarding
an adverse determination directly to the commissioner deleted text begin responsible for regulating the
utilization review organizationdeleted text end new text begin of commercenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 42.
Minnesota Statutes 2024, section 62Q.01, subdivision 2, is amended to read:
Subd. 2.
Commissioner.
"Commissioner" means deleted text begin the commissioner of health for purposes
of regulating health maintenance organizations, and community integrated service networks,
ordeleted text end the commissioner of commerce for purposes of regulating deleted text begin all otherdeleted text end health plan companies.
For all other purposes, "commissioner" means the commissioner of health.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 43.
Minnesota Statutes 2024, section 62Q.106, is amended to read:
62Q.106 DISPUTE RESOLUTION BY COMMISSIONER.
(a) A complainant may at any time submit a complaint to the deleted text begin appropriatedeleted text end commissioner
to investigate. After investigating a complaint, or reviewing a company's decision, the
deleted text begin appropriatedeleted text end commissioner may order a remedy as authorized under chapter 45, 60A, or 62D.
(b) In investigating a complaint filed against a health maintenance organization regarding
a vulnerable adult, upon request, the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end must interview at
least one family member of the complainant or the subject of the complaint. If the
complainant or the subject of the complaint does not want any family members to be
interviewed, this information will be included in the investigative file.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 44.
Minnesota Statutes 2024, section 62Q.188, subdivision 2, is amended to read:
Subd. 2.
Flexible benefits plan.
Notwithstanding any provision of this chapter, chapter
363A, or any other law to the contrary, a health plan company may offer, sell, issue, and
renew a health plan that is a flexible benefits plan under this section if the following
requirements are satisfied:
(1) the health plan must be offered in compliance with the laws of this state, except as
otherwise permitted in this section;
(2) the health plan must be designed to enable covered persons to better manage costs
and coverage options through the use of co-pays, deductibles, and other cost-sharing
arrangements;
(3) the health plan may modify or exclude any or all coverages of benefits that would
otherwise be required by law, except for maternity benefits and other benefits required under
federal law;
(4) each health plan and plan's premiums must be approved by the commissioner of
deleted text begin health ordeleted text end commerce, deleted text begin whichever is appropriate under section 62Q.01, subdivision 2,deleted text end but
deleted text begin neitherdeleted text end new text begin thenew text end commissioner maynew text begin notnew text end disapprove a plan on the grounds of a modification or
exclusion permitted under clause (3); and
(5) prior to the sale of the health plan, the purchaser must be given a written list of the
coverages otherwise required by law that are modified or excluded in the health plan. The
list must include a description of each coverage in the list and indicate whether the coverage
is modified or excluded. If coverage is modified, the list must describe the modification.
The list may, but is not required to, also list any or all coverages otherwise required by law
that are included in the health plan and indicate that they are included. The health plan
company must require that a copy of this written list be provided, prior to the effective date
of the health plan, to each enrollee or employee who is eligible for health coverage under
the plan.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 45.
Minnesota Statutes 2024, section 62Q.37, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given them.
(b) "Commissioner" means the commissioner of deleted text begin health for purposes of regulating health
maintenance organizations and community integrated service networks, the commissioner
ofdeleted text end commerce for purposes of regulatingnew text begin health maintenance organizations andnew text end nonprofit
health service plan corporations, or the commissioner of human services for the purpose of
contracting with managed care organizations serving persons enrolled in programs under
chapter 256B or 256L.
(c) "Health plan company" means (1) a nonprofit health service plan corporation operating
under chapter 62C; (2) a health maintenance organization operating under chapter 62D; (3)
a community integrated service network operating under chapter 62N; or (4) a managed
care organization operating under chapter 256B or 256L.
(d) "Nationally recognized independent organization" means (1) an organization that
sets specific national standards governing health care quality assurance processes, utilization
review, provider credentialing, marketing, and other topics covered by this chapter and
other chapters and audits and provides accreditation to those health plan companies that
meet those standards. The American Accreditation Health Care Commission (URAC), the
National Committee for Quality Assurance (NCQA), the Joint Commission on Accreditation
of Healthcare Organizations (JCAHO), and the Accreditation Association for Ambulatory
Health Care (AAAHC) are, at a minimum, defined as nationally recognized independent
organizations; and (2) the Centers for Medicare and Medicaid Services for purposes of
reviews or audits conducted of health plan companies under Part C of Title XVIII of the
Social Security Act or under section 1876 of the Social Security Act.
(e) "Performance standard" means those standards relating to quality management and
improvement, access and availability of service, utilization review, provider selection,
provider credentialing, marketing, member rights and responsibilities, complaints, appeals,
grievance systems, enrollee information and materials, enrollment and disenrollment,
subcontractual relationships and delegation, confidentiality, continuity and coordination of
care, assurance of adequate capacity and services, coverage and authorization of services,
practice guidelines, health information systems, and financial solvency.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 46.
Minnesota Statutes 2024, section 62Q.47, is amended to read:
62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY
SERVICES.
(a) All health plans, as defined in section 62Q.01, that provide coverage for alcoholism,
mental health, or chemical dependency services, must comply with the requirements of this
section.
(b) Cost-sharing requirements and benefit or service limitations for outpatient mental
health and outpatient chemical dependency and alcoholism services, except for persons
seeking chemical dependency services under section 245G.05, must not place a greater
financial burden on the insured or enrollee, or be more restrictive than those requirements
and limitations for outpatient medical services.
(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital
mental health services, psychiatric residential treatment facility services, and inpatient
hospital and residential chemical dependency and alcoholism services, except for persons
seeking chemical dependency services under section 245G.05, must not place a greater
financial burden on the insured or enrollee, or be more restrictive than those requirements
and limitations for inpatient hospital medical services.
(d) A health plan company must not impose an NQTL with respect to mental health and
substance use disorders in any classification of benefits unless, under the terms of the health
plan as written and in operation, any processes, strategies, evidentiary standards, or other
factors used in applying the NQTL to mental health and substance use disorders in the
classification are comparable to, and are applied no more stringently than, the processes,
strategies, evidentiary standards, or other factors used in applying the NQTL with respect
to medical and surgical benefits in the same classification.
(e) All health plans must meet the requirements of the federal Mental Health Parity Act
of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and
Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal
guidance or regulations issued under, those acts.
(f) The commissioner may require information from health plan companies to confirm
that mental health parity is being implemented by the health plan company. Information
required may include comparisons between mental health and substance use disorder
treatment and other medical conditions, including a comparison of prior authorization
requirements, drug formulary design, claim denials, rehabilitation services, and other
information the commissioner deems appropriate.
(g) Regardless of the health care provider's professional license, if the service provided
is consistent with the provider's scope of practice and the health plan company's credentialing
and contracting provisions, mental health therapy visits and medication maintenance visits
shall be considered primary care visits for the purpose of applying any enrollee cost-sharing
requirements imposed under the enrollee's health plan.
(h) All health plan companies offering health plans that provide coverage for alcoholism,
mental health, or chemical dependency benefits shall provide reimbursement for the benefits
delivered through the psychiatric Collaborative Care Model, which must include the following
Current Procedural Terminology or Healthcare Common Procedure Coding System billing
codes:
(1) 99492;
(2) 99493;
(3) 99494;
(4) G2214; and
(5) G0512.
This paragraph does not apply to managed care plans or county-based purchasing plans
when the plan provides coverage to public health care program enrollees under chapter
256B or 256L.
(i) The commissioner of commerce shall update the list of codes in paragraph (h) if any
alterations or additions to the billing codes for the psychiatric Collaborative Care Model
are made.
(j) "Psychiatric Collaborative Care Model" means the evidence-based, integrated
behavioral health service delivery method described at Federal Register, volume 81, page
80230, which includes a formal collaborative arrangement among a primary care team
consisting of a primary care provider, a care manager, and a psychiatric consultant, and
includes but is not limited to the following elements:
(1) care directed by the primary care team;
(2) structured care management;
(3) regular assessments of clinical status using validated tools; and
(4) modification of treatment as appropriate.
(k) By June 1 of each yeardeleted text begin , beginning June 1, 2021deleted text end , the commissioner of commercedeleted text begin , in
consultation with the commissioner of health,deleted text end shall submit a report on compliance and
oversight to the chairs and ranking minority members of the legislative committees with
jurisdiction over health and commerce. The report must:
(1) describe the commissioner's process for reviewing health plan company compliance
with United States Code, title 42, section 18031(j), any federal regulations or guidance
relating to compliance and oversight, and compliance with this section and section 62Q.53;
(2) identify any enforcement actions taken by either commissioner during the preceding
12-month period regarding compliance with parity for mental health and substance use
disorders benefits under state and federal law, summarizing the results of any market conduct
examinations. The summary must include: (i) the number of formal enforcement actions
taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the
subject matter of each enforcement action, including quantitative and nonquantitative
treatment limitations;
(3) detail any corrective action taken by either commissioner to ensure health plan
company compliance with this section, section 62Q.53, and United States Code, title 42,
section 18031(j); and
(4) describe the information provided by either commissioner to the public about
alcoholism, mental health, or chemical dependency parity protections under state and federal
law.
The report must be written in nontechnical, readily understandable language and must be
made available to the public by, among other means as the commissioners find appropriate,
posting the report on department websites. Individually identifiable information must be
excluded from the report, consistent with state and federal privacy protections.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 47.
Minnesota Statutes 2024, section 62Q.51, subdivision 3, is amended to read:
Subd. 3.
Rate approval.
The premium rates and cost sharing requirements for each
option must be submitted to deleted text begin the commissioner of health ordeleted text end the commissioner of commerce
as required by law. A health plan that includes lower enrollee cost sharing for services
provided by network providers than for services provided by out-of-network providers, or
lower enrollee cost sharing for services provided with prior authorization or second opinion
than for services provided without prior authorization or second opinion, qualifies as a
point-of-service option.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 48.
Minnesota Statutes 2024, section 62Q.556, subdivision 3, is amended to read:
Subd. 3.
Annual data reporting.
(a) Beginning April 1, 2024, a health plan company
must report annually to the commissioner of deleted text begin healthdeleted text end new text begin commercenew text end :
(1) the total number of claims and total billed and paid amounts for nonparticipating
provider services, by service and provider type, submitted to the health plan in the prior
calendar year; and
(2) the total number of enrollee complaints received regarding the rights and protections
established by the No Surprises Act in the prior calendar year.
(b) The deleted text begin commissionersdeleted text end new text begin commissionernew text end of commerce deleted text begin and healthdeleted text end shall develop the form
and manner for health plan companies to comply with paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 49.
Minnesota Statutes 2024, section 62Q.556, subdivision 4, is amended to read:
Subd. 4.
Enforcement.
(a) Any provider or facility, including a health care provider or
facility pursuant to section 62A.63, subdivision 2, or 62J.03, subdivision 8, that is subject
to the relevant provisions of the No Surprises Act is subject to the requirements of this
section and section 62J.811.
(b) The commissioner of commerce deleted text begin or healthdeleted text end shall enforce this section.
(c) If a health-related licensing board has cause to believe that a provider has violated
this section, it may further investigate and enforce the provisions of this section pursuant
to chapter 214.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 50.
Minnesota Statutes 2024, section 62Q.69, subdivision 2, is amended to read:
Subd. 2.
Procedures for filing a complaint.
(a) A complainant may submit a complaint
to a health plan company either by telephone or in writing. If a complaint is submitted orally
and the resolution of the complaint, as determined by the complainant, is partially or wholly
adverse to the complainant, or the oral complaint is not resolved to the satisfaction of the
complainant, by the health plan company within ten days of receiving the complaint, the
health plan company must inform the complainant that the complaint may be submitted in
writing. The health plan company must also offer to provide the complainant with any
assistance needed to submit a written complaint, including an offer to complete the complaint
form for a complaint that was previously submitted orally and promptly mail the completed
form to the complainant for the complainant's signature. At the complainant's request, the
health plan company must provide the assistance requested by the complainant. The
complaint form must include the following information:
(1) the telephone number of the health plan company member services or other
departments or persons equipped to advise complainants on complaint resolution;
(2) the address to which the form must be sent;
(3) a description of the health plan company's internal complaint procedure and the
applicable time limits; and
(4) the toll-free telephone number of deleted text begin eitherdeleted text end the commissioner of deleted text begin health ordeleted text end commerce
and notification that the complainant has the right to submit the complaint at any time to
the deleted text begin appropriatedeleted text end commissioner for investigation.
(b) Upon receipt of a written complaint, the health plan company must notify the
complainant within ten business days that the complaint was received, unless the complaint
is resolved to the satisfaction of the complainant within the ten business days.
(c) Each health plan company must provide, in the member handbook, subscriber contract,
or certification of coverage, a clear and concise description of how to submit a complaint
and a statement that, upon request, assistance in submitting a written complaint is available
from the health plan company.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 51.
Minnesota Statutes 2024, section 62Q.69, subdivision 3, is amended to read:
Subd. 3.
Notification of complaint decisions.
(a) The health plan company must notify
the complainant in writing of its decision and the reasons for it as soon as practical but in
no case later than 30 days after receipt of a written complaint. If the health plan company
cannot make a decision within 30 days due to circumstances outside the control of the health
plan company, the health plan company may take up to 14 additional days to notify the
complainant of its decision. If the health plan company takes any additional days beyond
the initial 30-day period to make its decision, it must inform the complainant, in advance,
of the extension and the reasons for the extension.
(b) For group health plans, if the decision is partially or wholly adverse to the
complainant, the notification must inform the complainant of the right to appeal the decision
to the health plan company's internal appeal process described in section 62Q.70 and the
procedure for initiating an appeal.
(c) For individual health plans, if the decision is partially or wholly adverse to the
complainant, the notification must inform the complainant of the right to submit the complaint
decision to the external review process described in section 62Q.73 and the procedure for
initiating the external review process. Notwithstanding the provisions in this subdivision,
a health plan company offering individual coverage may instead follow the process for
group health plans outlined in paragraph (b).
(d) The notification must also inform the complainant of the right to submit the complaint
at any time to deleted text begin eitherdeleted text end the commissioner of deleted text begin health ordeleted text end commerce for investigation and the
toll-free telephone number of the deleted text begin appropriatedeleted text end commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 52.
Minnesota Statutes 2024, section 62Q.71, is amended to read:
62Q.71 NOTICE TO ENROLLEES.
Each health plan company shall provide to enrollees a clear and concise description of
its complaint resolution procedure, if applicable under section 62Q.68, subdivision 1, and
the procedure used for utilization review as defined under chapter 62M as part of the member
handbook, subscriber contract, or certificate of coverage. If the health plan company does
not issue a member handbook, the health plan company may provide the description in
another written document. The description must specifically inform enrollees:
(1) how to submit a complaint to the health plan company;
(2) if the health plan includes utilization review requirements, how to notify the utilization
review organization in a timely manner and how to obtain authorization for health care
services;
(3) how to request an appeal either through the procedures described in section 62Q.70,
if applicable, or through the procedures described in chapter 62M;
(4) of the right to file a complaint with deleted text begin eitherdeleted text end the commissioner of deleted text begin health ordeleted text end commerce
at any time during the complaint and appeal process;
(5) of the toll-free telephone number of the deleted text begin appropriatedeleted text end commissioner; and
(6) of the right, for individual and group coverage, to obtain an external review under
section 62Q.73 and a description of when and how that right may be exercised, including
that under most circumstances an enrollee must exhaust the internal complaint or appeal
process prior to external review. However, an enrollee may proceed to external review
without exhausting the internal complaint or appeal process under the following
circumstances:
(i) the health plan company waives the exhaustion requirement;
(ii) the health plan company is considered to have waived the exhaustion requirement
by failing to substantially comply with any requirements including, but not limited to, time
limits for internal complaints or appeals; or
(iii) the enrollee has applied for an expedited external review at the same time the enrollee
has applied for internal review under chapter 62M.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 53.
Minnesota Statutes 2024, section 62Q.73, subdivision 3, is amended to read:
Subd. 3.
Right to external review.
(a) Any enrollee or anyone acting on behalf of an
enrollee who has received an adverse determination may submit a written request for an
external review of the adverse determination, if applicable under section 62Q.68, subdivision
1, or 62M.06, deleted text begin to the commissioner of health if the request involves a health plan company
regulated by that commissioner ordeleted text end to the commissioner of commerce deleted text begin if the request involves
a health plan company regulated by that commissionerdeleted text end . Notification of the enrollee's right
to external review must accompany the denial issued by the insurer.
(b) Nothing in this section requires the commissioner of deleted text begin health ordeleted text end commerce to
independently investigate an adverse determination referred for independent external review.
(c) If an enrollee requests an external review, the health plan company must participate
in the external review. The cost of the external review must be borne by the health plan
company.
(d) The enrollee must request external review within six months from the date of the
adverse determination.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 54.
Minnesota Statutes 2024, section 62Q.73, subdivision 10, is amended to read:
Subd. 10.
Data reporting.
The deleted text begin commissionersdeleted text end new text begin commissioner of commercenew text end shall make
available to the public, upon request, summary data on the decisions rendered under this
section, including the number of reviews heard and decided and the final outcomes. Any
data released to the public must not individually identify the enrollee initiating the request
for external review.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 55.
Minnesota Statutes 2024, section 62Q.81, subdivision 7, is amended to read:
Subd. 7.
Standard plans.
(a) A health plan company that offers individual health plans
must ensure that no less than one individual health plan at each level of coverage described
in subdivision 1, paragraph (b), clause (3), that the health plan company offers in each
geographic rating area the health plan company serves conforms to the standard plan
parameters determined by the commissioner under paragraph (e).
(b) An individual health plan offered under this subdivision must be:
(1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection
process;
(2) marketed as standard plans and in the same manner as other individual health plans
offered by the health plan company; and
(3) offered for purchase to any individual.
(c) This subdivision does not apply to catastrophic plans, grandfathered plans, small
group health plans, large group health plans, health savings accounts, qualified high
deductible health benefit plans, limited health benefit plans, or short-term limited-duration
health insurance policies.
(d) Health plan companies must meet the requirements in this subdivision separately for
plans offered through MNsure under chapter 62V and plans offered outside of MNsure.
(e) The commissioner of commercedeleted text begin , in consultation with the commissioner of health,deleted text end
must annually determine standard plan parameters, including but not limited to cost-sharing
structure and covered benefits, that comprise a standard plan in Minnesota.
(f) Notwithstanding section 62A.65, subdivision 2, a health plan company may
discontinue offering a health plan under this subdivision if, three years after the date the
plan is initially offered, the plan has fewer than 75 enrollees. A health plan company
discontinuing a health plan under this paragraph may discontinue a health plan that has
fewer than 75 enrollees if it:
(1) provides notice of the plan's discontinuation in writing, in a form prescribed by the
commissioner, to each enrollee of the plan at least 90 calendar days before the date the
coverage is discontinued;
(2) offers on a guaranteed issue basis to each enrollee the option to purchase an individual
health plan currently being offered by the health plan company for individuals in that
geographic rating area. An enrollee who does not select an option shall be automatically
enrolled in the individual health plan closest in actuarial value to the enrollee's current plan;
and
(3) acts uniformly without regard to any health status-related factor of an enrollee or an
enrollee's dependents who may become eligible for coverage.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 56.
Minnesota Statutes 2024, section 62U.04, subdivision 13, is amended to read:
Subd. 13.
Expanded access to and use of the all-payer claims data.
(a) The
commissioner or the commissioner's designee shall make the data submitted under
subdivisions 4, 5, 5a, and 5b, including data classified as private or nonpublic, available tonew text begin :
(1)new text end individuals and organizations engaged in research on, or efforts to effect transformation
in, health care outcomes, access, quality, disparities, or spending, provided the use of the
data serves a public benefitnew text begin ; and (2) the commissioner of commerce, subject to the data use
requirements under subdivision 11, paragraph (b), to perform health insurance oversight
dutiesnew text end .
new text begin (b) new text end Data made available under this subdivision may not be used to:
(1) create an unfair market advantage for any participant in the health care market in
Minnesota, including health plan companies, payers, and providers;
(2) reidentify or attempt to reidentify an individual in the data; or
(3) publicly report contract details between a health plan company and provider and
derived from the data.
deleted text begin (b)deleted text end new text begin (c)new text end To implement deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (b)new text end , the commissioner shall:
(1) establish detailed requirements for data access; a process for data users to apply to
access and use the data; legally enforceable data use agreements to which data users must
consent; a clear and robust oversight process for data access and use, including a data
management plan, that ensures compliance with state and federal data privacy laws;
agreements for state agencies and the University of Minnesota to ensure proper and efficient
use and security of data; and technical assistance for users of the data and for stakeholders;
(2) develop a fee schedule to support the cost of expanded access to and use of the data,
provided the fees charged under the schedule do not create a barrier to access or use for
those most affected by disparities; and
(3) create a research advisory group to advise the commissioner on applications for data
use under this subdivision, including an examination of the rigor of the research approach,
the technical capabilities of the proposed user, and the ability of the proposed user to
successfully safeguard the data.
Sec. 57.
Minnesota Statutes 2024, section 62W.06, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Data sharing. new text end
new text begin
Notwithstanding subdivision 2, paragraph (d), the commissioner
must provide the data under subdivision 2, paragraph (a), to the commissioner of health.
The commissioner of health must maintain data received under this section in a manner
consistent with the data's classification under subdivision 2, paragraph (d).
new text end
Sec. 58. new text begin REVISOR INSTRUCTION.
new text end
new text begin
(a) Except as otherwise provided in this act, the revisor of statutes shall substitute the
term "commissioner of commerce" for the term "commissioner of health" wherever the
term appears in (1) Minnesota Statutes, chapters 62D, except section 62D.02, subdivision
12; 62L; and 62Q, except sections 62Q.19 and 62Q.33; (2) Minnesota Statutes, sections
60B.15, 60B.191, 60B.20, 62K.09, 62K.10, 62K.105, 62K.12, 62K.13, 62K.14, 62W.05,
256B.69, and 256B.692; (3) Minnesota Rules, chapters 4685, 2740, 4688; and (4) Minnesota
Rules, part 9510.2020, subparts 3 and 8, item (C). The revisor shall also make any necessary
grammatical changes to verbs or other words to conform with this substitution.
new text end
new text begin
(b) The revisor of statutes shall remove the term "commissioner of health" wherever the
term appears in Minnesota Rules, chapter 2730.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2027.
new text end
ARTICLE 5
REINSURANCE
Section 1.
Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
Subdivision 1.
Administration of plan.
(a) The association is Minnesota's reinsurance
entity to administer the state-based reinsurance program referred to as the Minnesota premium
security plan.
(b) The association may apply for any available federal funding for the plan. All funds
received by or appropriated to the association shall be deposited in the premium security
plan account in section 62E.25, subdivision 1. The association shall notify the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services and insurance within ten days of receiving any federal funds.
(c) The association must collect or access data from an eligible health carrier that are
necessary to determine reinsurance payments, according to the data requirements under
subdivision 5, paragraph (c).
(d) The board must not use any funds allocated to the plan for staff retreats, promotional
giveaways, excessive executive compensation, or promotion of federal or state legislative
or regulatory changes.new text begin This paragraph does not prohibit the association from providing
technical assistance or information regarding the association or the Minnesota premium
security plan.
new text end
(e) For each applicable benefit year, the association must notify eligible health carriers
of reinsurance payments to be made for the applicable benefit year no later than June 30 of
the year following the applicable benefit year.
(f) On a quarterly basis during the applicable benefit year, the association must provide
each eligible health carrier with the calculation of total reinsurance payment requests.
(g) By August 15 deleted text begin of the year following the applicable benefit yeardeleted text end new text begin , 2027, for benefit
year 2026new text end , the association must disburse all applicable reinsurance payments to an eligible
health carrier.new text begin For benefit year 2027, the commissioner must transfer to the association the
total amount of money necessary for the association to pay all applicable reinsurance
payments to each eligible health carrier by August 15, 2028.
new text end
new text begin
(h) For benefit year 2027, the association must disburse applicable reinsurance payments
to an eligible health carrier no later than August 31, 2028.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 1a, is amended
to read:
Subd. 1a.
2028 assessment on group health carriers.
(a) An assessment is imposed in
calendar year 2028 on group health carriers operating under the Minnesota premium security
plan in benefit year 2027. This is a onetime assessment.
(b) By May 1, 2028, the association must provide each group health carrier with an
estimate of the carrier's assessment under paragraph (a).
(c) By June 30, 2028, the association must deleted text begin notify each group health carrier of the carrier's
assessment amount under paragraph (a). The association must determinedeleted text end new text begin proposenew text end each
carrier's assessment amount, in consultation with the commissioner, based on the group
health carrier's portion of the total premiums for group health plans written in Minnesota
for benefit year 2027.new text begin The commissioner must approve the carrier's assessment amount.new text end
The deleted text begin association must establish thedeleted text end new text begin finalnew text end assessment amount for each group health plan deleted text begin sodeleted text end new text begin
must ensurenew text end that the aggregate assessment amount collected from group health plans under
this subdivision equals the amount necessary for the appropriations and transfers under
section 62E.25, subdivision 1.new text begin By July 25, 2028, the association must notify each group
health carrier of the carrier's proposed assessment amount under paragraph (a).
new text end
(d) Subject to paragraph (e), each group health carrier must pay the assessment under
paragraph (a) to the deleted text begin associationdeleted text end new text begin commissionernew text end by August 1, 2028new text begin , for deposit in the premium
security plan account created under section 62E.25new text end . A group health plan must pay the
assessment in the manner determined by the commissioner.
(e) A group health carrier may apply to the commissioner to defer all or part of the
assessment imposed under paragraph (a). The application must be submitted to the
commissioner by May 15, 2028. The commissioner may defer all or part of the assessment
if the commissioner determines the payment of the assessment places the group health
carrier in a financially impaired condition. The commissioner may deny an application for
deferral under this paragraph. No later than June 15, 2028, the commissioner must notify
the association and the group health carrier whether the assessment deferral is approved or
denied. If the commissioner approves the deferral request, the notice must include the amount
of and due date for the deferred portion of the assessment. If all or part of the assessment
is deferred, the association must include the amount deferred in the other group health
carriers' assessments in a proportionate manner consistent with this subdivision. deleted text begin Thedeleted text end new text begin Anew text end
group health carrier that receives a deferral is liable to the deleted text begin associationdeleted text end new text begin commissioner new text end for the
amount deferred and is prohibited from receiving or becoming entitled to a reinsurance
payment under the Minnesota premium security plan until the group health carrier has paid
the deferred assessment.
(f) If the association determines the assessment imposed under paragraph (a) exceeds
or is less than the amount necessary to operate and administer the Minnesota premium
security plan and issue reinsurance payments, the association must require group health
carriers to pay an additional amount or the association must issue a refund to the group
health carriers. The association must determine the accuracy of the assessment by deleted text begin May 30deleted text end new text begin
March 15new text end , 2029.
deleted text begin
(g) By August 15, 2028, the association must remit the assessments collected under this
subdivision to the commissioner for deposit in the premium security plan account created
under section 62E.25.
deleted text end
Sec. 3.
Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 2, is amended
to read:
Subd. 2.
Payment parameters.
(a) The board must design and adjust the payment
parameters to ensure the payment parameters:
(1) will stabilize or reduce premium rates in the individual market;
(2) will increase participation in the individual market;
(3) will improve access to health care providers and services for those in the individual
market;
(4) mitigate the impact high-risk individuals have on premium rates in the individual
market;
(5) take into account any federal funding available for the plan;
(6) for benefit year 2027, take into account the assessment under subdivision 1a;
(7) ensure the premium security plan account created under section 62E.25, subdivision
1, has sufficient money to ensure MNsure's stable operation after taking into account the
Minnesota premium security plan's effect on MNsure's funding; and
(8) take into account the total amount available to fund the plan.
(b) The attachment point for the plan is the threshold amount for claims costs incurred
by an eligible health carrier for an enrolled individual's covered benefits in a benefit year,
beyond which the claims costs for benefits are eligible for reinsurance payments. The
attachment point shall be set by the board at $50,000 or more, but not exceeding the
reinsurance cap.
(c) The coinsurance rate for the plan is the rate at which the association will reimburse
an eligible health carrier for claims incurred for an enrolled individual's covered benefits
in a benefit year above the attachment point and below the reinsurance cap. The coinsurance
rate shall be set by the board at a rate between 50 and 80 percent.
(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible
health carrier for an enrolled individual's covered benefits, after which the claims costs for
benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set
by the board at $250,000 or less.
(e) The board may adjust the payment parameters to the extent necessary to secure
federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1,
section 8.
(f) For purposes of paragraph (a), clause (7), the deleted text begin associationdeleted text end new text begin commissionernew text end must consult
with the commissioner of management and budget and the board of directors of MNsure to
determine the amount of funding necessary to ensure MNsure's stable operation.
Sec. 4.
Minnesota Statutes 2025 Supplement, section 297I.20, subdivision 7, is amended
to read:
Subd. 7.
Reinsurance credit.
Beginning with taxable years after December 31, 2028,
a taxpayer may claim a credit against the premiums tax imposed under this chapter equal
to the amount of the assessment paid by the taxpayer under section 62E.23 in the immediately
preceding calendar year. If the amount of the credit exceeds the liability for tax under this
chapter, the commissioner must refund the excess to the deleted text begin insurance companydeleted text end new text begin taxpayernew text end . An
amount sufficient to pay the refunds under this section is appropriated to the commissioner
from the general fund. The credit under this subdivision does not affect the calculation of
fire state aid under section 477B.03 and police state aid under section 477C.03. The
commissioner of commerce must annually provide to the commissioner a list of assessments
paid by taxpayers under section 62E.23 by March 1 of the calendar year following the
assessment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2028.
new text end
ARTICLE 6
HEALTH INSURANCE
Section 1.
Minnesota Statutes 2024, section 62A.135, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the
meanings given deleted text begin themdeleted text end :
deleted text begin (a)deleted text end new text begin (1)new text end "fixed indemnity policy" is a policy form, other than an accidental death and
dismemberment policy, a disability income policy, or a long-term care policy as defined in
section 62A.46, subdivision 2, that pays a predetermined, specified, fixed benefit for services
provided.new text begin Fixed indemnity policy includes short-term home health and nursing care insurance
under section 62A.70.new text end Claim costs under these forms are generally not subject to inflation,
although they may be subject to changes in the utilization of health care services. For policy
forms providing both expense-incurred and fixed benefits, the policy form is a fixed
indemnity policy if 50 percent or more of the total claims are for predetermined, specified,
fixed benefits;
deleted text begin (b)deleted text end new text begin (2)new text end "guaranteed renewable" means that, during the renewal period (to a specified
age) renewal cannot be declined nor coverage changed by the insurer for any reason other
than nonpayment of premiums, fraud, or misrepresentation, but the insurer can revise rates
on a class basis upon approval by the commissioner;
deleted text begin (c)deleted text end new text begin (3)new text end "noncancelable" means that, during the renewal period (to a specified age) renewal
cannot be declined nor coverage changed by the insurer for any reason other than nonpayment
of premiums, fraud, or misrepresentation and that rates cannot be revised by the insurer.
This includes policies that are guaranteed renewable to a specified age, such as 60 or 65, at
guaranteed rates; and
deleted text begin (d)deleted text end new text begin (4)new text end "average annualized premium" means the average of the estimated annualized
premium per covered person based on the anticipated distribution of business using all
significant criteria having a price difference, such as age, sex, amount, dependent status,
mode of payment, and rider frequency. For filing of rate revisions, the amount is the
anticipated average assuming the revised rates have fully taken effect.
Sec. 2.
Minnesota Statutes 2025 Supplement, 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);
(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); or
(9) the individual meets the requirements under subdivision 1r, paragraph (c), and enrolls
during the open enrollment period.
(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.
(7) For an individual described in paragraph (b), clause (9), the guarantee issue period
is the open enrollment period.
(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 deleted text begin (4)deleted text end new text begin (3)new text end , 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), deleted text begin clausedeleted text end new text begin clauses (4) andnew text end (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.
new text begin
(i) An individual described in paragraph (b), clause (4), whose enrollment ceased between
January 1, 2025, and January 1, 2026, is an eligible person beginning for plan year 2027.
Individuals under this paragraph are entitled to any Medicare supplement policy offered by
any issuer regardless of the individual's health coverage status or health plan after the
individual's enrollment ceased and before plan year 2027.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 3.
Minnesota Statutes 2024, section 62A.46, subdivision 2, is amended to read:
Subd. 2.
Long-term care policy.
new text begin (a) new text end "Long-term care policy" means an individual or
group policy, certificate, subscriber contract, or other evidence of coverage that provides
benefits for prescribed long-term care, including nursing facility services or home care
services, or both nursing facility services and home care services, pursuant to the
requirements of sections 62A.46 to 62A.56.new text begin Long-term care policy does not include
short-term home health and nursing care insurance under section 62A.70.
new text end
new text begin (b) new text end Sections 62A.46, 62A.48, and 62A.52 to 62A.56 do not apply to a long-term care
policy issued to deleted text begin (a)deleted text end new text begin (1)new text end an employer or employers or to the trustee of a fund established by
an employer where only employees or retirees, and dependents of employees or retirees,
are eligible for coverage or deleted text begin (b)deleted text end new text begin (2)new text end to a labor union or similar employee organization. deleted text begin The
associations exempted from the requirements of sections 62A.3099 to 62A.44 under 62A.31,
subdivision 1, clause (c) shall not be subject to the provisions of sections 62A.46 to 62A.56
until July 1, 1988.
deleted text end
Sec. 4.
new text begin
[62A.70] SHORT-TERM HOME HEALTH AND NURSING CARE
INSURANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Activities of daily living" has the meaning given in section 62S.01, subdivision 2.
new text end
new text begin
(c) "Cognitive impairment" has the meaning given in section 62S.01, subdivision 9.
new text end
new text begin
(d) "Free-look period" means a period with a duration of at least 30 days, beginning the
date the policy, certificate, contract, or other evidence of coverage is issued and delivered
to the insured, during which an insured may cancel the policy, certificate, contract, or other
evidence of coverage and receive a full refund of all paid insurance premiums.
new text end
new text begin
(e) "Home health agency" has the meaning given in section 62A.46, subdivision 10.
new text end
new text begin
(f) "Insured" means a person covered under a short-term home health and nursing care
insurance policy.
new text end
new text begin
(g) "Nursing facility" has the meaning given in section 62A.46, subdivision 3.
new text end
new text begin
(h) "Plan of care" has the meaning given in section 62A.46, subdivision 8.
new text end
new text begin
(i) "Qualified insurer" means an entity licensed under chapter 62A or 62C.
new text end
new text begin
(j) "Short-term home health and nursing care insurance" means an individual or group
policy, certificate, subscriber contract, or other evidence of coverage that provides benefits
for short-term home health services or short-term nursing care services. Short-term home
health and nursing care insurance does not include:
new text end
new text begin
(1) a long-term care policy, as defined in section 62A.46, subdivision 2;
new text end
new text begin
(2) long-term care insurance, as defined in section 62S.01, subdivision 18;
new text end
new text begin
(3) Medicare supplement policies, as defined in section 62A.3099, subdivision 18; or
new text end
new text begin
(4) major medical, disability income, or hospital confinement indemnity policies.
new text end
new text begin
(k) "Short-term home health services" means one or more of the following services to
care for and treat an insured that are provided by a home health agency in a noninstitutional
setting pursuant to a written diagnosis or assessment and plan of care:
new text end
new text begin
(1) nursing and related personal care services under the direction of a registered nurse,
including the services of a home health aide;
new text end
new text begin
(2) physical therapy;
new text end
new text begin
(3) speech therapy;
new text end
new text begin
(4) respiratory therapy;
new text end
new text begin
(5) occupational therapy;
new text end
new text begin
(6) nutritional services provided by a licensed dietitian;
new text end
new text begin
(7) homemaker services, meal preparation, and similar nonmedical services;
new text end
new text begin
(8) medical social services; and
new text end
new text begin
(9) other similar medical services and health-related support services.
new text end
new text begin
(l) "Short-term nursing care services" means services to care for and treat an insured
that are provided by a nursing facility pursuant to a written diagnosis or assessment and
plan of care.
new text end
new text begin
(m) "Waiting period" means a specified time period that an insured must wait before
some or all of the insured's coverage becomes effective.
new text end
new text begin Subd. 2. new text end
new text begin Short-term home health and nursing care insurance approval. new text end
new text begin
(a) A qualified
insurer may offer, issue, deliver, and renew short-term home health and nursing care
insurance if the insurance meets the requirements of this section.
new text end
new text begin
(b) Short-term home health and nursing care insurance may be offered, issued, delivered,
or renewed only by a qualified insurer.
new text end
new text begin
(c) Short-term home health and nursing care insurance must not be offered, issued,
delivered, or renewed until the short-term home health and nursing care insurance is approved
by the commissioner as necessary under sections 62A.02 and 62A.135.
new text end
new text begin Subd. 3. new text end
new text begin Policy requirements. new text end
new text begin
(a) Short-term home health and nursing care insurance
must provide benefits upon:
new text end
new text begin
(1) cognitive impairment; or
new text end
new text begin
(2) the insured's inability to perform at least two activities of daily living without
substantial assistance.
new text end
new text begin
(b) Short-term home health and nursing care insurance must not provide coverage for a
period exceeding 360 days.
new text end
new text begin
(c) Short-term home health and nursing care insurance must provide a free-look period.
new text end
new text begin
(d) Short-term home health and nursing care insurance must not be canceled due to an
insured's deterioration in health status or use of benefits.
new text end
new text begin
(e) An insurer may deny the renewal of a policy, certificate, contract, or other evidence
of coverage of short-term home health and nursing care insurance only for:
new text end
new text begin
(1) nonpayment of a premium by the insured;
new text end
new text begin
(2) fraud or misrepresentation by the insured;
new text end
new text begin
(3) termination of the insurer's authority to transact business in the state; or
new text end
new text begin
(4) the insured's exhaustion of the maximum benefit period.
new text end
new text begin
(f) Upon the conversion or replacement by an insurer of a policy, certificate, contract,
or other evidence of coverage containing a waiting period, the insurer is prohibited from
establishing a waiting period that differs from the original waiting period.
new text end
new text begin Subd. 4. new text end
new text begin Required disclosures. new text end
new text begin
Short-term home health and nursing care insurance must
not be offered or issued without providing the following written disclosures:
new text end
new text begin
(1) a statement, in bold text, that the policy, certificate, contract, or other evidence of
coverage is supplemental health insurance; is not long-term care insurance; and is not a
policy under the Minnesota partnership for long-term care program;
new text end
new text begin
(2) a clear and understandable explanation of the free-look period; and
new text end
new text begin
(3) a clear and understandable explanation of all renewability and continuity provisions.
new text end
Sec. 5.
Minnesota Statutes 2024, section 62M.02, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Artificial intelligence. new text end
new text begin
"Artificial intelligence" has the meaning given in
United States Code, title 15, section 9401.
new text end
Sec. 6.
Minnesota Statutes 2024, section 62M.09, subdivision 3, is amended to read:
Subd. 3.
Physician reviewer; adverse determinations.
(a) A physician must review
and make the adverse determination under section 62M.05 in all cases in which the utilization
review organization has concluded that an adverse determination for clinical reasons is
appropriate.
(b) The physician conducting the review and making the adverse determination must:
(1) hold a current, unrestricted license to practice medicine in this state; and
(2) have the same or similar medical specialty as a provider that typically treats or
manages the condition for which the health care service has been requested.
This paragraph does not apply to reviews conducted in connection with policies issued by
a health plan company that is assessed less than three percent of the total amount assessed
by the Minnesota Comprehensive Health Association.
(c) The physician should be reasonably available by telephone to discuss the determination
with the attending health care professional.
(d) Notwithstanding paragraph (a), a review of an adverse determination involving a
prescription drug must be conducted by a licensed pharmacist or physician who is competent
to evaluate the specific clinical issues presented in the review.
(e) This subdivision does not apply to outpatient mental health or substance abuse services
governed by subdivision 3a.
new text begin
(f) A utilization review organization is prohibited from using an algorithm or artificial
intelligence alone without a clinician review by an appropriate health professional, as
required under this section, when making an adverse determination.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027, and applies to health
plans offered, sold, issued, or renewed on or after that date.
new text end
Sec. 7.
Minnesota Statutes 2024, section 62Q.47, is amended to read:
62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY
SERVICES.
(a) All health plans, as defined in section 62Q.01, that provide coverage for alcoholism,
mental health, or chemical dependency services, must comply with the requirements of this
section.
(b) Cost-sharing requirements and benefit or service limitations for outpatient mental
health and outpatient chemical dependency and alcoholism services, except for persons
seeking chemical dependency services under section 245G.05, must not place a greater
financial burden on the insured or enrollee, or be more restrictive than those requirements
and limitations for outpatient medical services.
(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital
mental health services, psychiatric residential treatment facility services, and inpatient
hospital and residential chemical dependency and alcoholism services, except for persons
seeking chemical dependency services under section 245G.05, must not place a greater
financial burden on the insured or enrollee, or be more restrictive than those requirements
and limitations for inpatient hospital medical services.
(d) A health plan company must not impose an NQTL with respect to mental health and
substance use disorders in any classification of benefits unless, under the terms of the health
plan as written and in operation, any processes, strategies, evidentiary standards, or other
factors used in applying the NQTL to mental health and substance use disorders in the
classification are comparable to, and are applied no more stringently than, the processes,
strategies, evidentiary standards, or other factors used in applying the NQTL with respect
to medical and surgical benefits in the same classification.
(e) All health plans must meet the requirements of the federal Mental Health Parity Act
of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and
Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal
guidance or regulations issued under, those acts.
(f) The commissioner may require information from health plan companies to confirm
that mental health parity is being implemented by the health plan company. Information
required may include comparisons between mental health and substance use disorder
treatment and other medical conditions, including a comparison of prior authorization
requirements, drug formulary design, claim denials, rehabilitation services, and other
information the commissioner deems appropriate.
(g) Regardless of the health care provider's professional license, if the service provided
is consistent with the provider's scope of practice and the health plan company's credentialing
and contracting provisions, mental health therapy visits and medication maintenance visits
shall be considered primary care visits for the purpose of applying any enrollee cost-sharing
requirements imposed under the enrollee's health plan.
(h) All health plan companies offering health plans that provide coverage for alcoholism,
mental health, or chemical dependency benefits shall provide reimbursement for the benefits
delivered through the psychiatric Collaborative Care Model, which must include the following
Current Procedural Terminology or Healthcare Common Procedure Coding System billing
codes:
(1) 99492;
(2) 99493;
(3) 99494;
(4) G2214; and
(5) G0512.
This paragraph does not apply to managed care plans or county-based purchasing plans
when the plan provides coverage to public health care program enrollees under chapter
256B or 256L.
(i) The commissioner of commerce shall update the list of codes in paragraph (h) if any
alterations or additions to the billing codes for the psychiatric Collaborative Care Model
are made.
(j) "Psychiatric Collaborative Care Model" means the evidence-based, integrated
behavioral health service delivery method described at Federal Register, volume 81, page
80230, which includes a formal collaborative arrangement among a primary care team
consisting of a primary care provider, a care manager, and a psychiatric consultant, and
includes but is not limited to the following elements:
(1) care directed by the primary care team;
(2) structured care management;
(3) regular assessments of clinical status using validated tools; and
(4) modification of treatment as appropriate.
(k) By June 1 of each year, beginning June 1, 2021, the commissioner of commerce, in
consultation with the commissioner of health, shall submit a report on compliance and
oversight to the chairs and ranking minority members of the legislative committees with
jurisdiction over health and commerce. The report must:
(1) describe the commissioner's process for reviewing health plan company compliance
with United States Code, title 42, section 18031(j), any federal regulations or guidance
relating to compliance and oversight, and compliance with this section and section 62Q.53;
(2) identify any enforcement actions taken by either commissioner during the preceding
12-month period regarding compliance with parity for mental health and substance use
disorders benefits under state and federal law, summarizing the results of any market conduct
examinations. The summary must include: (i) the number of formal enforcement actions
taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the
subject matter of each enforcement action, including quantitative and nonquantitative
treatment limitations;
(3) detail any corrective action taken by either commissioner to ensure health plan
company compliance with this section, section 62Q.53, and United States Code, title 42,
section 18031(j); and
(4) describe the information provided by either commissioner to the public about
alcoholism, mental health, or chemical dependency parity protections under state and federal
law.
The report must be written in nontechnical, readily understandable language and must be
made available to the public by, among other means as the commissioners find appropriate,
posting the report on department websites. Individually identifiable information must be
excluded from the report, consistent with state and federal privacy protections.
new text begin
(l) Health plans must reimburse all alcoholism, mental health, and chemical dependency
services provided by clinical trainees, pursuant to section 245I.04, subdivision 6, at a rate
at least equal to 100 percent of the rate that would be paid to an independently licensed
mental health professional performing the same services. This paragraph does not apply if
the service provided by the clinical trainee:
new text end
new text begin
(1) is not within the clinical trainee's scope of practice under section 245I.04, subdivision
7; or
new text end
new text begin
(2) is not a covered service if performed by an independently licensed mental health
professional at the same clinic.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027, for health plans offered,
issued, sold, or renewed on or after that date.
new text end
Sec. 8.
Minnesota Statutes 2024, section 62Q.545, is amended to read:
62Q.545 COVERAGE OF HOME CARE NURSING.
(a) Home care nursing services, as provided under section 256B.0625, subdivision 7,
with the exception of section 256B.0654, subdivision 4, shall be covered under a health
plan for persons who are concurrently covered by both the health plan and enrolled in
medical assistance under chapter 256B.
(b) For purposes of this section, a period of home care nursing services may be subject
to the co-payment, coinsurance, deductible, or other enrollee cost-sharing requirements that
apply under the health plan. Cost-sharing requirements for home care nursing services must
not place a greater financial burden on the insured or enrollee than those requirements
applied by the health plan to other similar services or benefits. Nothing in this section is
intended to prevent a health plan company from requiring prior authorization by the health
plan company for such services as required by section 256B.0625, subdivision 7, or use of
contracted providers under the applicable provisions of the health plan.
new text begin
(c) Notwithstanding section 62J.26, a health plan must not impose any quantity limitation
on the coverage under this section.
new text end
new text begin
(d) Notwithstanding section 62J.26, a health plan must refer to all services meeting the
definition of home care nursing services in paragraph (e) as home care nursing services in
the health plan's policy, certificate, contract, or other evidence of coverage and related
documents, including but not limited to utilization review policies, claims forms, instructions,
and communications to enrollees and providers.
new text end
new text begin
(e) For purposes of this section, "home care nursing services" means ongoing, individual,
and continuous nursing services that are:
new text end
new text begin
(1) ordered by a physician, advanced practice registered nurse, or physician assistant;
new text end
new text begin
(2) provided by a registered nurse or licensed practical nurse acting within the provider's
scope of practice;
new text end
new text begin
(3) medically necessary to maintain, stabilize, or restore the recipient's health due to
medical complexity or the need for sustained skilled nursing assessment, intervention, or
monitoring; and
new text end
new text begin
(4) required for a duration or frequency that cannot be safely or effectively met through
intermittent, episodic, or visit-based nursing services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (c) is effective January 1, 2026, and applies to policies
issued, offered, or renewed and causes of action accruing on or after that date. Paragraphs
(d) and (e) are effective August 1, 2026.
new text end
Sec. 9.
Minnesota Statutes 2024, section 72A.13, subdivision 1, is amended to read:
Subdivision 1.
Penalties.
Any company, corporation, association, society, or other
insurer, or any officer or agent thereof, which or who solicits, issues or delivers to any
person in this state any policy in violation of the provisions of sections 60A.06, subdivision
3 deleted text begin ordeleted text end new text begin ,new text end 62A.01 to 62A.10,new text begin or 62A.70new text end may be punished by a fine of not more than $200 for
each offense, and the commissioner may revoke the license of any company, corporation,
association, society, or other insurer of another state or country, or of the agent thereof,
which or who willfully violates any provision of sections 60A.06, subdivision 3 deleted text begin ordeleted text end new text begin ,new text end 62A.01
to 62A.10new text begin , or 62A.70new text end .
Sec. 10.
Minnesota Statutes 2024, section 256B.0913, subdivision 4, is amended to read:
Subd. 4.
Eligibility for funding for services for nonmedical assistance recipients.
(a)
Funding for services under the alternative care program is available to persons who meet
the following criteria:
(1) the person is a citizen of the United States or a United States national;
(2) the person has been determined by a community assessment under section 256B.0911
to be a person who would require the level of care provided in a nursing facility, as
determined under section 256B.0911, subdivision 26, but for the provision of services under
the alternative care program;
(3) the person is age 65 or older;
(4) the person would be eligible for medical assistance within 135 days of admission to
a nursing facility;
(5) the person is not ineligible for the payment of long-term care services by the medical
assistance program due to an asset transfer penalty under section 256B.0595 or equity
interest in the home exceeding $500,000 as stated in section 256B.056;
(6) the person needs long-term care services that are not funded through other state or
federal funding, or other health insurance or other third-party insurance such as long-term
care insurancenew text begin . For purposes of this clause, short-term home health and nursing care insurance
under section 62A.70 does not constitute health or other third-party insurancenew text end ;
(7) except for individuals described in clause (8), the monthly cost of the alternative
care services funded by the program for this person does not exceed 75 percent of the
monthly limit described under section 256S.18. This monthly limit does not prohibit the
alternative care client from payment for additional services, but in no case may the cost of
additional services purchased under this section exceed the difference between the client's
monthly service limit defined under section 256S.04, and the alternative care program
monthly service limit defined in this paragraph. If care-related supplies and equipment or
environmental modifications and adaptations are or will be purchased for an alternative
care services recipient, the costs may be prorated on a monthly basis for up to 12 consecutive
months beginning with the month of purchase. If the monthly cost of a recipient's other
alternative care services exceeds the monthly limit established in this paragraph, the annual
cost of the alternative care services shall be determined. In this event, the annual cost of
alternative care services shall not exceed 12 times the monthly limit described in this
paragraph;
(8) for individuals assigned a case mix classification A as described under section
256S.18, with (i) no dependencies in activities of daily living, or (ii) up to two dependencies
in bathing, dressing, grooming, walking, and eating when the dependency score in eating
is three or greater as determined by an assessment performed under section 256B.0911, the
monthly cost of alternative care services funded by the program cannot exceed $593 per
month for all new participants enrolled in the program on or after July 1, 2011. This monthly
limit shall be applied to all other participants who meet this criteria at reassessment. This
monthly limit shall be increased annually as described in section 256S.18. This monthly
limit does not prohibit the alternative care client from payment for additional services, but
in no case may the cost of additional services purchased exceed the difference between the
client's monthly service limit defined in this clause and the limit described in clause (7) for
case mix classification A;
(9) the person is making timely payments of the assessed monthly fee. A person is
ineligible if payment of the fee is over 60 days past due, unless the person agrees to:
(i) the appointment of a representative payee;
(ii) automatic payment from a financial account;
(iii) the establishment of greater family involvement in the financial management of
payments; or
(iv) another method acceptable to the lead agency to ensure prompt fee payments; and
(10) for a person participating in consumer-directed community supports, the person's
monthly service limit must be equal to the monthly service limits in clause (7), except that
a person assigned a case mix classification L must receive the monthly service limit for
case mix classification A.
(b) The lead agency may extend the client's eligibility as necessary while making
arrangements to facilitate payment of past-due amounts and future premium payments.
Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be
reinstated for a period of 30 days.
(c) Alternative care funding under this subdivision is not available for a person who is
a medical assistance recipient or who would be eligible for medical assistance without a
spenddown or waiver obligation. A person whose initial application for medical assistance
and the elderly waiver program is being processed may be served under the alternative care
program for a period up to 60 days. If the individual is found to be eligible for medical
assistance, medical assistance must be billed for services payable under the federally
approved elderly waiver plan and delivered from the date the individual was found eligible
for the federally approved elderly waiver plan. Notwithstanding this provision, alternative
care funds may not be used to pay for any service the cost of which: (i) is payable by medical
assistance; (ii) is used by a recipient to meet a waiver obligation; or (iii) is used to pay a
medical assistance income spenddown for a person who is eligible to participate in the
federally approved elderly waiver program under the special income standard provision.
(d) Alternative care funding is not available for a person who resides in a licensed nursing
home, certified boarding care home, hospital, or intermediate care facility, except for case
management services which are provided in support of the discharge planning process for
a nursing home resident or certified boarding care home resident to assist with a relocation
process to a community-based setting.
(e) Alternative care funding is not available for a person whose income is greater than
the maintenance needs allowance under section 256S.05, but equal to or less than 120 percent
of the federal poverty guideline effective July 1 in the fiscal year for which alternative care
eligibility is determined, who would be eligible for the elderly waiver with a waiver
obligation.
ARTICLE 7
CONSUMER PROTECTION
Section 1.
Minnesota Statutes 2025 Supplement, section 8.37, subdivision 3, is amended
to read:
Subd. 3.
Money deposited in the account.
deleted text begin 50deleted text end new text begin Fiftynew text end percent of all money recovered by
the attorney general in a consumer enforcement action that is payable to the state and not
designated as consumer enforcement public compensation or for another specific purpose
deleted text begin up to the first $5,000,000 each fiscal yeardeleted text end must be deposited into the account. The remaining
50 percent of money recovered by the attorney general in a consumer enforcement action
that is payable to the state and not designated as consumer enforcement public compensation
or for another specific purpose must be deposited into the general fund. For purposes of
this subdivision, the amount of money recovered in a consumer enforcement action that
must be deposited into the fund is determined at the time when the money otherwise would
have been deposited into the general fund.
Sec. 2.
Minnesota Statutes 2025 Supplement, section 8.37, subdivision 5, is amended to
read:
Subd. 5.
Distributions to eligible consumers.
(a) Money in the account may be
distributed to any eligible consumer with an identified amount of unpaid consumer
enforcement public compensation. deleted text begin If the amount of money in the account is insufficient to
pay all distributions to eligible consumers with an identified amount of unpaid consumer
enforcement public compensation, thedeleted text end Money must be distributed first to consumers eligible
for unpaid consumer enforcement public compensation based on a consumer enforcement
action with a final order of the oldest date.
deleted text begin
(b) If the attorney general projects that there will be insufficient funding to pay all eligible
consumers from the funds available on an ongoing basis, the attorney general may
recommend to the legislature that the legislature prescribe a formula for prorating or capping
payments to eligible consumers so that more eligible consumers will receive payment from
the fund.
deleted text end
new text begin
(b) If money is distributed to an eligible consumer, the distribution is limited to:
new text end
new text begin
(1) the full identified amount of unpaid consumer enforcement public compensation, up
to $50,000; and
new text end
new text begin
(2) 50 percent of the identified amount of unpaid consumer enforcement public
compensation over $50,000, or $50,000, whichever is less.
new text end
Sec. 3.
new text begin
[45A.08] SUSPECTED FRAUD OR FINANCIAL EXPLOITATION;
TRUSTED CONTACT PROGRAM.
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, "trusted contact" means a person
who has attained the age of 18 years and who a financial services provider customer
designates as a person a financial services provider may contact if (1) an emergency occurs,
(2) the financial services provider loses contact with the customer, or (3) the financial
services provider suspects third-party fraud or financial exploitation targeting the customer.
new text end
new text begin Subd. 2. new text end
new text begin Fraudulent activity; financial exploitation; reporting. new text end
new text begin
Notwithstanding any
other law to the contrary, a financial services provider may report suspected fraudulent
activity or financial exploitation targeting a customer to a federal, state, county, or municipal
law enforcement agency or an appropriate public protective agency.
new text end
new text begin Subd. 3. new text end
new text begin Trusted contact program. new text end
new text begin
(a) Notwithstanding any other law to the contrary,
a financial services provider may offer a trusted contact program to customers. A customer
may designate one or more trusted contacts for the financial services provider to contact in
the event (1) a customer is not responsive to financial services provider communications,
(2) the financial services provider is presented with an urgent matter or emergency involving
the customer and the financial services provider is unable to locate the customer, (3) the
financial services provider suspects fraudulent activity or financial exploitation targeting
the customer, or (4) the customer's account is deemed dormant and the financial services
provider is attempting to verify the customer's status and location. A financial services
provider may establish procedures, requirements, and forms the financial services provider
deems appropriate and necessary to implement a trusted contact program under this section.
new text end
new text begin
(b) A customer may terminate a person's appointment as a trusted contact at any time.
A trusted contact may withdraw the person's status as a trusted contact at any time. The
financial services provider may require documentation or verification the financial services
provider determines is necessary to establish a trusted contact's termination or withdrawal.
new text end
new text begin Subd. 4. new text end
new text begin Account security. new text end
new text begin
Notwithstanding any other law to the contrary, a financial
services provider may voluntarily offer customers an account with convenience and security
features that set transaction limits and permit limited access for one or more trusted contacts
to view account activity.
new text end
new text begin Subd. 5. new text end
new text begin Certain liability limited. new text end
new text begin
(a) A financial services provider is not liable for a
trusted contact's actions. A financial services provider is not liable for declining to interact
with a trusted contact if the financial services provider, in good faith and exercising
reasonable care, determines a trusted contact is not acting in the customer's best interests.
new text end
new text begin
(b) A financial services provider is not civilly liable for actions taken to report suspected
fraudulent activity or financial exploitation under subdivision 2.
new text end
new text begin
(c) A financial services provider is not civilly liable for implementing or not
implementing, or for actions or omissions related to providing or administering, a trusted
contact program.
new text end
new text begin
(d) A trusted contact who acts in good faith and exercises reasonable care is immune
from liability.
new text end
Sec. 4.
Minnesota Statutes 2024, section 53B.69, subdivision 10, is amended to read:
Subd. 10.
Virtual currency kiosk.
"Virtual currency kiosk" means an electronic terminal
acting as a mechanical agentnew text begin or a person acting on behalfnew text end of the virtual currency kiosk
operator to enable the virtual currency kiosk operator to facilitate the exchange of virtual
currency for money, bank credit, or other virtual currency, including but not limited to by
(1) connecting directly to a separate virtual currency exchanger that performs the actual
virtual currency transmission, or (2) drawing upon the virtual currency in the possession of
the electronic terminal's operator.
Sec. 5.
new text begin
[53B.751] VIRTUAL CURRENCY KIOSKS; PROHIBITION.
new text end
new text begin Subdivision 1. new text end
new text begin Virtual currency kiosks prohibited. new text end
new text begin
(a) Beginning August 1, 2026, a
person is prohibited from installing, operating, maintaining, or making available for use a
virtual currency kiosk.
new text end
new text begin
(b) On or before December 31, 2026, a virtual currency kiosk operator must remove the
virtual currency kiosk from any location where the virtual currency kiosk is visible or
accessible to the public.
new text end
new text begin Subd. 2. new text end
new text begin Payout. new text end
new text begin
(a) On or before December 31, 2026, a virtual currency kiosk operator
that conducts virtual currency transactions exclusively through a virtual currency kiosk
must pay out any money or virtual currency held for or owed to a new or existing customer
that exists as a result of virtual currency kiosk transactions.
new text end
new text begin
(b) A new or existing customer may elect, at any time before December 31, 2026, to
receive a payout under this subdivision:
new text end
new text begin
(1) in United States dollars, in an amount equal to the market value of the customer's
virtual currency plus any fiat currency; or
new text end
new text begin
(2) to a virtual currency wallet designated by the customer.
new text end
new text begin
(c) A virtual currency kiosk operator must make a payout under this subdivision in the
manner elected by a new or existing customer under paragraph (b). If a new or existing
customer elects the option under paragraph (b), clause (2), the virtual currency kiosk operator
must transfer the full amount of the money and virtual currency being held for or owed to
the new or existing customer to the customer's designated virtual currency wallet within 30
days of the date the customer submits the payout request.
new text end
new text begin
(d) A payout to a new or existing customer must be recorded on the applicable blockchain.
A virtual currency kiosk operator must retain proof that a transfer was made and must make
retained proof available to the commissioner upon request.
new text end
new text begin Subd. 3. new text end
new text begin Exception. new text end
new text begin
A virtual currency kiosk operator is not required to make a payout
under subdivision 2 if the operator maintains, at all times, other lawful means for new and
existing customers to access, transfer, redeem, or otherwise transact a customer's money or
virtual currency that exists as a result of virtual currency kiosk transactions.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026.
new text end
Sec. 6.
Minnesota Statutes 2024, section 325E.21, subdivision 1b, is amended to read:
Subd. 1b.
Purchase or acquisition record required.
(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a record written
in English, using an electronic record program at the time of each purchase or acquisition
of scrap metal or a motor vehicle. The record must include:
(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal or motor vehicle purchased or acquired;
(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased
or acquired and a unique transaction identifier;
(3) a photocopy or electronic scan of the seller'snew text begin :
new text end
new text begin (i)new text end proof of identificationnew text begin ,new text end including the identification numbernew text begin , if the seller is an individual;
or
new text end
new text begin (ii) certificate of authority to transact business in Minnesota and business tax identification
number, if the seller is an entitynew text end ;
(4) the amount paid and the number of the check or electronic transfer used to purchase
or acquire the scrap metal or motor vehicle;
(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal or motor vehicle, including the vehicle make and model, and any
identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;
(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens
or encumbrances and the seller has the right to sell it;
(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal or motor vehicle was received
by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount
paid for the scrap metal or motor vehicle;
(8) the identity or identifier of the employee completing the transaction; and
(9) if the seller is attempting to sell copper metal, a photocopy or electronic scan of the
seller's:
(i) current license to sell scrap metal copper issued by the commissioner under subdivision
2c; or
(ii) the documentation used to support the seller being deemed to hold a license to sell
scrap metal copper under subdivision 2c, paragraph (f), clauses (1) to (3).
(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall
at all reasonable times be open to the inspection of any properly identified law enforcement
officer.
(c) Except for the purchase or acquisition of detached catalytic converters or motor
vehicles, no record is required for property purchased or acquired from merchants,
manufacturers, salvage pools, insurance companies, rental car companies, financial
institutions, charities, dealers licensed under section 168.27, or wholesale dealers, having
an established place of business, or of any goods purchased or acquired at open sale from
any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
and kept by the person, which must be shown upon demand to any properly identified law
enforcement officer.
(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
(7), to the seller in every transaction.
(e) The commissioner of public safety and law enforcement agencies in the jurisdiction
where a dealer is located may conduct inspections and audits as necessary to ensure
compliance, refer violations to the city or county attorney for criminal prosecution, and
notify the registrar of motor vehicles.
(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
employee, or representative may not disclose personal information concerning a customer
without the customer's consent unless the disclosure is required by law or made in response
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).
Sec. 7.
Minnesota Statutes 2024, section 325E.21, subdivision 2c, is amended to read:
Subd. 2c.
License required for scrap metal copper sale.
(a) Beginning January 1,
2025, a person is prohibited from engaging in the sale of scrap metal copper unless the
person has a valid license issued by the commissioner under this subdivision.
(b) On the first Friday of the months of April and October of each calendar year, from
8:00 a.m. to 5:00 p.m., a scrap metal dealer may purchase up to $25 of scrap metal copper
from individuals who do not have an approved license to sell scrap metal copper under this
subdivision. All other requirements of subdivision 1b apply and must be documented by
the scrap metal dealer on the dates specified in this paragraph.
(c) A seller of scrap metal copper may apply to the commissioner on a form prescribed
by the commissioner.
new text begin (d) new text end The application form new text begin for an individual new text end must include, at a minimum:
(1) the name, permanent address, telephone number, and date of birth of the applicant;
and
(2) an acknowledgment that the applicant obtained the copper by lawful means in the
regular course of the applicant's business, trade, or authorized construction work.
new text begin
(e) The application form for an entity must include, at a minimum:
new text end
new text begin
(1) the name, legal entity type, principal business address, telephone number, and date
of formation of the entity; and
new text end
new text begin
(2) an acknowledgment that the applicant obtained the copper by lawful means in the
regular course of the applicant's business, trade, or authorized construction work.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end Each application must be accompanied by a nonrefundable fee of $250.
deleted text begin (e)deleted text end new text begin (g)new text end Within 30 days of the date an application is received, the commissioner may
require additional information or submissions from an applicant and may obtain any
document or information that is reasonably necessary to verify the information contained
in the application. Within 90 days after the date a completed application is received, the
commissioner must review the application and issue a license if the applicant is deemed
qualified under this section. The commissioner may issue a license subject to restrictions
or limitations. If the commissioner determines the applicant is not qualified, the commissioner
must notify the applicant and must specify the reason for the denial.
deleted text begin (f)deleted text end new text begin (h)new text end A person is deemed to hold a license to sell scrap metal copper if the person holds
one of the following:
(1) a license to perform work pursuant to chapter 326B or section 103I.501;
(2) a document, certificate, or card of competency issued by a municipality to perform
work in a given trade or craft in the building trades. The document, certificate, or card must
state that the individual is authorized to sell scrap metal copper. This clause is effective
January 1, 2025; or
(3) a Section 608 Technician Certification issued by the United States Environmental
Protection Agency.
deleted text begin (g)deleted text end new text begin (i)new text end A license issued under this subdivision is valid for one year. To renew a license,
an applicant must submit a completed renewal application on a form prescribed by the
commissioner and a renewal fee of $250. The commissioner may request that a renewal
applicant submit additional information to clarify any new information presented in the
renewal application. A renewal application submitted after the renewal deadline must be
accompanied by a nonrefundable late fee of $500.
deleted text begin (h)deleted text end new text begin (j)new text end The commissioner may deny a license renewal under this subdivision if:
(1) the commissioner determines that the applicant is in violation of or noncompliant
with federal or state law; or
(2) the applicant fails to timely submit a renewal application and the information required
under this subdivision.
deleted text begin (i)deleted text end new text begin (k)new text end In lieu of denying a renewal application under paragraph (g), the commissioner
may permit the applicant to submit to the commissioner a corrective action plan to cure or
correct deficiencies.
deleted text begin (j)deleted text end new text begin (l)new text end The commissioner may suspend, revoke, or place on probation a license issued
under this subdivision if:
(1) the applicant engages in fraudulent activity that violates state or federal law;
(2) the commissioner receives consumer complaints that justify an action under this
subdivision to protect the safety and interests of consumers;
(3) the applicant fails to pay an application license or renewal fee; or
(4) the applicant fails to comply with a requirement established in this subdivision.
deleted text begin (k)deleted text end new text begin (m)new text end This subdivision does not apply to transfers by or to an auctioneer who is in
compliance with chapter 330 and acting in the person's official role as an auctioneer to
facilitate or conduct an auction of scrap metal.
deleted text begin (l)deleted text end new text begin (n)new text end The commissioner must enforce this subdivision under chapter 45.
Sec. 8.
new text begin
[325E.91] PROHIBITION ON NUDIFICATION TECHNOLOGY.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Identifiable individual" means a person that is identifiable:
new text end
new text begin
(1) from the image itself, by the person depicted in the image, or by another person; or
new text end
new text begin
(2) from personal information displayed in connection with the image.
new text end
new text begin
(c) "Intimate part" has the meaning given in section 609.341, subdivision 5.
new text end
new text begin
(d) "Nudify" or "nudified" means the process by which:
new text end
new text begin
(1) an image or video is altered or generated to depict an intimate part not depicted in
an original unaltered image or video of an identifiable individual; and
new text end
new text begin
(2) the altered or generated image or video is so realistic that a reasonable person would
believe that the intimate part belongs to the identifiable individual.
new text end
new text begin
(e) "Technical skill" means substantial application of individualized technological or
artistic skill and judgment by a human creator in directing, shaping, or controlling the output.
new text end
new text begin Subd. 2. new text end
new text begin Nudification prohibited. new text end
new text begin
(a) A person who owns or controls a website,
application, software, program, or other service must not:
new text end
new text begin
(1) allow a user to access, download, or use the website, application, software, program,
or other service to nudify an image or video; or
new text end
new text begin
(2) nudify an image or video on behalf of a user.
new text end
new text begin
(b) A person must not advertise or promote a website, application, software, program,
or other service that performs the actions described in paragraph (a).
new text end
new text begin Subd. 3. new text end
new text begin Exemption. new text end
new text begin
Subdivision 2 does not apply when the website, application,
software, program, or other service requires the technical skill of a user to nudify an image
or video.
new text end
new text begin Subd. 4. new text end
new text begin Civil action; damages. new text end
new text begin
An individual depicted in an image or video that was
nudified in violation of this section may bring a civil action in district court against the
person who violated this section for:
new text end
new text begin
(1) compensatory damages, including mental anguish or suffering, in an amount up to
three times the actual damages sustained;
new text end
new text begin
(2) punitive damages;
new text end
new text begin
(3) injunctive relief;
new text end
new text begin
(4) reasonable attorney fees, costs, and disbursements; and
new text end
new text begin
(5) other relief the court deems just and equitable.
new text end
new text begin Subd. 5. new text end
new text begin Penalties. new text end
new text begin
(a) The attorney general may enforce this section under section 8.31.
In addition to other remedies or penalties, a person who violates this section is subject to a
civil penalty not to exceed $500,000 for each unlawful access, download, or use under
subdivision 2.
new text end
new text begin
(b) Notwithstanding any contrary provision in law, including but not limited to section
16A.151, a civil penalty recovered under this subdivision must be deposited into the general
fund. On July 1 each year, the accumulated balance of civil penalties collected in the previous
year is appropriated to the commissioner of public safety for the Office of Justice Programs
to provide grants to organizations to provide direct services and advocacy for victims of
sexual assault, general crime, domestic violence, and child abuse. Funding must support
the direct needs of organizations serving victims of crime by providing:
new text end
new text begin
(1) direct client assistance to crime victims;
new text end
new text begin
(2) competitive wages for direct service staff;
new text end
new text begin
(3) hotel stays and other housing-related supports and services;
new text end
new text begin
(4) culturally responsive programming;
new text end
new text begin
(5) prevention programming, including domestic abuse transformation and restorative
justice programming; and
new text end
new text begin
(6) for other needs of organizations and crime victim survivors.
new text end
new text begin
Services funded must include services for victims of crime in underserved communities
most impacted by violence and reflect the ethnic, racial, economic, cultural, and geographic
diversity of the state. Up to five percent of the appropriation is available for grant
administration.
new text end
new text begin Subd. 6. new text end
new text begin Jurisdiction; venue. new text end
new text begin
(a) A court has jurisdiction over a civil action filed pursuant
to this section if the plaintiff or defendant resides in this state.
new text end
new text begin
(b) A civil action arising under this section may be filed in the county where the plaintiff
resides.
new text end
new text begin Subd. 7. new text end
new text begin Immunity. new text end
new text begin
(a) This section does not alter or amend the liabilities and protections
granted by United States Code, title 47, section 230, and must be construed in a manner
consistent with federal law.
new text end
new text begin
(b) This section does not impose liability on the provider of an information service or a
telecommunication service, both as defined in United States Code, title 47, section 153.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to causes
of action accruing on or after that date.
new text end
Sec. 9.
new text begin
[325F.756] ONLINE SWEEPSTAKES.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Dual-currency" means a system of payment that allows a person to play or participate
in a simulated gambling program for direct or indirect consideration, including consideration
associated with a related product, service, or activity, and for which the person playing the
simulated gambling program may become eligible for a prize, award, cash, cash equivalent,
or chance to win a prize, award, cash, or cash equivalent. Dual-currency system does not
include a contest for which no consideration is given, either directly or indirectly.
new text end
new text begin
(c) "Online sweepstakes game" means a game, contest, or promotion that: (1) is available
on the Internet or accessible on a mobile device, computer terminal, or similar access device;
(2) utilizes a dual-currency system of payment allowing the player to exchange the currency
for a prize, award, cash, cash equivalent, or chance to win a prize, award, cash, or cash
equivalent; and (3) simulates casino-style or another form of gambling.
new text end
new text begin
(d) "Prize" has the meaning given in section 325F.755, subdivision 1.
new text end
new text begin Subd. 2. new text end
new text begin
Prohibition of online sweepstakes games and revenue from illegal
markets.
new text end
new text begin
(a) A person or entity is prohibited from operating, conducting, or promoting an
online sweepstakes game in Minnesota.
new text end
new text begin
(b) An applicant, licensed entity, financial institution, payment processor, geolocation
provider, gaming content supplier, platform provider, or media affiliate is prohibited from
supporting the operation of, conducting, or promoting an online sweepstakes game in
Minnesota.
new text end
new text begin Subd. 3. new text end
new text begin Penalties and remedies. new text end
new text begin
The penalties and remedies provided under section
325F.755, subdivision 7, apply to violations of this section. The commissioner of public
safety may exercise all powers necessary to investigate and enforce this section and may
issue notices of violation, impose civil fines, and bring enforcement actions consistent with
section 325F.755, subdivision 7.
new text end
Sec. 10.
new text begin
[325F.7845] PHARMACEUTICAL ADVERTISING.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Prescription drug" has the meaning provided in section 151.441, subdivision 8,
except that prescription drug only includes drugs covered by the medical assistance program,
MinnesotaCare program, or state employees group insurance program.
new text end
new text begin
(c) "Television advertisement" means a form of paid marketing communication designed
to promote products, services, or brands through an over-the-air broadcast or an
Internet-based, nonbroadcast stream of an over-the-air broadcast.
new text end
new text begin Subd. 2. new text end
new text begin Prohibition. new text end
new text begin
Television advertisements for the sale of prescription drugs to
consumers are prohibited.
new text end
new text begin Subd. 3. new text end
new text begin Enforcement. new text end
new text begin
The attorney general may enforce this section under section
8.31.
new text end
Sec. 11.
Minnesota Statutes 2024, section 325F.79, is amended to read:
325F.79 DEFINITIONS.
For purposes of sections 325F.79 to 325F.792, the following definitions apply:
new text begin
(a) "Advertisement" means an oral, written, graphic, or pictorial statement made in the
course of soliciting business. Advertisement includes without limitation a statement or
representation:
new text end
new text begin
(1) made in a newspaper, magazine, or other public publication;
new text end
new text begin
(2) contained in a notice, sign, billboard, poster, display, circular, pamphlet, or letter;
or
new text end
new text begin
(3) made on radio, television, or the Internet.
new text end
deleted text begin (a)deleted text end new text begin (b)new text end "Animal" means a dog, wholly or in part of the species Canis familiaris, or a cat,
wholly or in part of the species Felis domesticus.
deleted text begin (b)deleted text end new text begin (c)new text end "Pet dealer" means any person, firm, partnership, corporation, or association,
including breeders, that is required to collect sales tax for the sale of animals to the public.
Pet dealer does not include humane societies, nonprofit organizations performing the
functions of humane societies, or animal control agencies.
deleted text begin (c)deleted text end new text begin (d)new text end "Breeder" means any person, firm, partnership, corporation, or association that
breeds animals for direct or indirect sale to the public.
deleted text begin (d)deleted text end new text begin (e)new text end "Broker" means a person, firm, partnership, corporation, or association that
purchases animals for resale to other brokers or pet dealers.
deleted text begin (e)deleted text end new text begin (f)new text end "Health problem" means any disease, illness, or congenital or hereditary condition
which would impair the health or function of the animal that is apparent at the time of sale,
or which should have been apparent to the seller from the veterinary history of the animal.
new text begin
(g) "Pet shop" means a pet dealer that operates a physical retail store from which animals
are sold or offered for sale to the general public, whether through an appointment or
otherwise.
new text end
deleted text begin (f)deleted text end new text begin (h)new text end "Veterinarian" means a licensed veterinarian in the state of Minnesota.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to acts
committed on or after that date.
new text end
Sec. 12.
Minnesota Statutes 2024, section 325F.791, subdivision 1, is amended to read:
Subdivision 1.
Disclosure.
new text begin (a) new text end Every pet dealer shall deliver to each retail purchaser of
an animal written disclosure as follows:
deleted text begin (a)deleted text end new text begin (1)new text end the name, address, and USDA license number of the breeder and any broker who
has had possession of the animal; the date of the animal's birth; the date the pet dealer
received the animal; the breed, sex, color, and identifying marks of the animal; the individual
identifying tag, tattoo, or collar number; the name and registration number of the sire and
dam and the litter number; and a record of inoculations, worming treatments, and medication
received by the animal while in the possession of the pet dealerdeleted text begin .deleted text end new text begin ;
new text end
deleted text begin (b)deleted text end new text begin (2)new text end a statement signed by the pet dealer that the animal has no known health problem,
or a statement signed by the pet dealer disclosing any known health problem and a statement
signed by a veterinarian that recommends necessary treatmentdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(3) a copy of all available state or federal inspection reports for the animal's breeder for
all inspections that occurred during the three years preceding the date the animal was
purchased.
new text end
new text begin (b) new text end The disclosure shall be made part of the statement of consumer rights set forth in
subdivision 10. The disclosure required in paragraph (a)new text begin , clause (1),new text end need not be made for
mixed breed animals if the information is not available and cannot be determined by the
pet dealer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to acts
committed on or after that date.
new text end
Sec. 13.
Minnesota Statutes 2024, section 325F.791, subdivision 5, is amended to read:
Subd. 5.
Responsibilities of purchaser.
new text begin (a) new text end To obtain the remedies provided in
subdivision 6, the purchaser shall with respect to an animal with a health problem:
deleted text begin (a)deleted text end new text begin (1)new text end notify the pet dealer, within two business days, of the diagnosis by a veterinarian
new text begin of the purchaser's choosing new text end of a health problem and provide the pet dealer with the name
and telephone number of the veterinarian and a copy of the veterinarian's report on the
animaldeleted text begin .deleted text end new text begin ; and
new text end
deleted text begin (b)deleted text end new text begin (2)new text end if the purchaser wishes to receive a full refund for the animal, return the animal
no later than two business days after receipt of a written statement from a veterinarian
indicating the animal is unfit due to a health problem.
new text begin (b) new text end With respect to a dead animal the purchaser must provide the pet dealer a written
statement from a veterinarian, indicating the animal died from a health problem which
existed on or before the receipt of the animal by the purchaser.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to acts
committed on or after that date.
new text end
Sec. 14.
new text begin
[325F.7915] SALE OF DOGS AND CATS PROHIBITED.
new text end
new text begin Subdivision 1. new text end
new text begin Prohibition. new text end
new text begin
A pet shop must not sell, offer to sell, barter, auction, or
otherwise transfer ownership of an animal.
new text end
new text begin Subd. 2. new text end
new text begin Adoption of animals. new text end
new text begin
A pet shop may provide space to a nonprofit humane
society, animal control agency, or animal rescue and rehoming organization to offer animals
for adoption if the society, agency, or organization qualifies as a nonprofit organization
under section 501(c)(3) of the Internal Revenue Code.
new text end
new text begin Subd. 3. new text end
new text begin Ownership interest and fees. new text end
new text begin
A pet shop is prohibited from having an ownership
interest in an animal offered for adoption under subdivision 2 or receiving a fee for providing
space for animal adoption.
new text end
new text begin Subd. 4. new text end
new text begin Continued operation. new text end
new text begin
Notwithstanding subdivision 1, a pet shop that sold or
offered for sale an animal from the pet shop's physical premises for at least one year before
the effective date of this section may continue to operate as a pet shop and engage in the
sale or offer for sale of animals if:
new text end
new text begin
(1) an animal sold or offered for sale by the pet shop on or after the effective date of this
section is obtained only from a state-licensed or USDA-licensed breeder; and
new text end
new text begin
(2) the pet shop discloses the breeder's state or USDA license number on the animal's
display cage or enclosure.
new text end
new text begin Subd. 5. new text end
new text begin Local authority. new text end
new text begin
Notwithstanding this section, a county, city, town, or township
may enact and enforce by ordinance stricter regulations regarding the transfer of ownership
of animals, including a prohibition on selling or offering for sale animals by a pet dealer or
other entity.
new text end
new text begin Subd. 6. new text end
new text begin Violations. new text end
new text begin
A pet shop that operates as a pet shop pursuant to subdivision 4
that violates this section on three separate occasions is prohibited from selling, offering to
sell, bartering, auctioning, or otherwise transferring ownership of an animal.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to acts
committed on or after that date.
new text end
Sec. 15.
Minnesota Statutes 2024, section 325F.792, subdivision 2, is amended to read:
Subd. 2.
Civil penalty.
(a) A pet dealer who:
(1) sells an animal without delivery of the disclosure required in section 325F.791,
subdivision 1;
(2) fails to maintain the records required by section 325F.791, subdivision 2;
(3) fails to provide registration papers as provided in section 325F.791, subdivision 3;
(4) fails to make or provide payment for the examinations required by section 325F.791,
subdivision 4;
(5) fails to post the notice required by section 325F.791, subdivision 9; or
(6) fails to provide the statement of consumer rights required by section 325F.791,
subdivision 10,
is subject to a civil fine of up to $1,000 per violation.
new text begin
(b) A pet shop that violates section 325F.7915 is subject to a civil fine of up to $1,000
per violation. Each transfer of an animal's ownership in violation of section 325F.7915 is
a separate violation.
new text end
deleted text begin (b)deleted text end new text begin (c) new text end Civil fines collected under this subdivision shall be collected by the court and
turned over to the prosecuting attorney.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to acts
committed on or after that date.
new text end
Sec. 16.
new text begin
[325M.40] MINOR ACCESS TO CHATBOTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Artificial intelligence" or "AI" means a machine-based system that is capable of,
for explicit or implicit objectives, inferring from the input the system receives how to
generate outputs that influence physical or virtual environments.
new text end
new text begin
(c) "AI companion" means artificial intelligence systems that are specifically designed,
marketed, or optimized to form ongoing social or emotional bonds with individuals, whether
or not the systems also provide information, complete tasks, or assist with specific functions.
AI companions seek to build or engage in an emotional relationship with the user by:
new text end
new text begin
(1) expressing or inviting emotional attachment;
new text end
new text begin
(2) reminding, prompting, or nudging the user to return for emotional support or
companionship;
new text end
new text begin
(3) depicting nonverbal forms of emotional support;
new text end
new text begin
(4) behaving in a way that a reasonable user would consider excessive praise designed
to foster emotional attachment; or
new text end
new text begin
(5) enabling or purporting to enable increased intimacy based on engagement or pay.
new text end
new text begin
AI companion does not include a consumer electronic device that incorporates a speaker
and voice command interface or text interface and acts as a voice- or text-activated virtual
assistant.
new text end
new text begin
(d) "Chatbot" means an artificial intelligence system with a natural language interface
that provides adaptive, human-like responses to user inputs and is capable of meeting a
user's social needs, including by exhibiting anthropomorphic features and being able to
sustain a relationship across multiple interactions. Chatbot does not include:
new text end
new text begin
(1) a chatbot that is used only for customer service, a business' operational purposes,
productivity and analysis related to source information, internal research, or technical
assistance;
new text end
new text begin
(2) a chatbot that is a feature of a video game and is limited to replies related to the video
game that cannot discuss topics related to mental health, self-harm, sexually explicit conduct,
or maintain a dialogue on other topics unrelated to the video game; or
new text end
new text begin
(3) a stand-alone consumer electronic device that functions as a speaker and voice
command interface, acts as a voice-activated virtual assistant, and does not sustain a
relationship across multiple interactions or generate outputs that are likely to elicit emotional
responses in the user.
new text end
new text begin
(e) "Minor" means an individual under the age of 18.
new text end
new text begin Subd. 2. new text end
new text begin Prohibition. new text end
new text begin
(a) A person must ensure that a chatbot operated or distributed
by the person does not make chatbots available to minors to use, interact with, purchase, or
converse with.
new text end
new text begin
(b) A person operating artificial intelligence systems that primarily function as AI
companions must ensure that chatbots operated or distributed by the person are not available
to minors to use, interact with, purchase, or converse with.
new text end
new text begin Subd. 3. new text end
new text begin Remedies; enforcement. new text end
new text begin
(a) An individual injured by a violation of this section
may bring a civil action for damages, statutory damages not to exceed $1,000, injunctive
relief, and costs and reasonable attorney fees.
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new text begin
(b) The attorney general may enforce this section under section 8.31. In an action brought
under this paragraph, the person who owns or controls a website, application, software, or
program and violates this section is liable for a civil penalty not to exceed $5,000,000.
new text end
new text begin EFFECTIVE DATE. new text end
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This section is effective July 1, 2027.
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Sec. 17. new text begin TRANSITION PERIOD.
new text end
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A person who makes a chatbot available to minors must begin decreasing services in a
manner that does not harm minors who use chatbots before services end on July 1, 2027.
new text end
new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 18. new text begin REPEALER.
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(a)
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new text begin
Minnesota Statutes 2024, section 53B.75, subdivisions 1, 2, 3, and 5,
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are repealed.
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(b)
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new text begin
Minnesota Statutes 2024, sections 53B.69, subdivisions 3b and 3c; and 53B.75,
subdivision 4,
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are repealed.
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new text begin EFFECTIVE DATE. new text end
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Paragraph (a) is effective August 1, 2026. Paragraph (b) is effective
January 17, 2027.
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ARTICLE 8
SECURITIES
Section 1.
Minnesota Statutes 2024, section 80A.50, is amended to read:
80A.50 SECTION 302; FEDERAL COVERED SECURITIES; SMALL
CORPORATE OFFERING REGISTRATION.
(a) Federal covered securities.
(1) Required filing of records. With respect to a federal covered security, as defined
in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. Section 77r(b)(2)), that is not
otherwise exempt under sections 80A.45 through 80A.47, a rule adopted or order issued
under this chapter may require the filing of any or all of the following records:
(A) before the initial offer of a federal covered security in this state, all records that are
part of a federal registration statement filed with the Securities and Exchange Commission
under the Securities Act of 1933 and a consent to service of process complying with section
80A.88 signed by the issuer;
(B) after the initial offer of the federal covered security in this state, all records that are
part of an amendment to a federal registration statement filed with the Securities and
Exchange Commission under the Securities Act of 1933; and
(C) to the extent necessary or appropriate to compute fees, a report of the value of the
federal covered securities sold or offered to persons present in this state, if the sales data
are not included in records filed with the Securities and Exchange Commission.
(2) Notice filing effectiveness and renewal. A notice filing under subsection (a) is
effective for one year commencing on the later of the notice filing or the effectiveness of
the offering filed with the Securities and Exchange Commission. On or before expiration,
the issuer may renew a notice filing by filing a copy of those records filed by the issuer with
the Securities and Exchange Commission that are required by rule or order under this chapter
to be filed. A previously filed consent to service of process complying with section 80A.88
may be incorporated by reference in a renewal. A renewed notice filing becomes effective
upon the expiration of the filing being renewed.
(3) Notice filings for federal covered securities under section 18(b)(4)(D). With
respect to a security that is a federal covered security under Section 18(b)(4)(D) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(4)(D)), a rule under this chapter may
require a notice filing by or on behalf of an issuer to include a copy of Form D, including
the Appendix, as promulgated by the Securities and Exchange Commission, and a consent
to service of process complying with section 80A.88 signed by the issuer not later than 15
days after the first sale of the federal covered security in this state.
(4) Stop orders. Except with respect to a federal security under Section 18(b)(1) of the
Securities Act of 1933 (15 U.S.C. Section 77r(b)(1)), if the administrator finds that there is
a failure to comply with a notice or fee requirement of this section, the administrator may
issue a stop order suspending the offer and sale of a federal covered security in this state.
If the deficiency is corrected, the stop order is void as of the time of its issuance and no
penalty may be imposed by the administrator.
(b) Small corporation offering registration.
(1) Registration required. A security meeting the conditions set forth in this section
may be registered as set forth in this section.
(2) Availability. Registration under this section is available only to the issuer of securities
and not to an affiliate of the issuer or to any other person for resale of the issuer's securities.
The issuer must be organized under the laws of one of the states or possessions of the United
States. The securities offered must be exempt from registration under the Securities Act of
1933 pursuant to Rule 504 of Regulation D (15 U.S.C. Section 77c).
(3) Disqualification. Registration under this section is not available to any of the
following issuers:
(A) an issuer subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934;
(B) an investment company;
(C) a development stage company that either has no specific business plan or purpose
or has indicated that its business plan is to engage in a merger or acquisition with an
unidentified company or companies or other entity or person;
(D) an issuer if the issuer or any of its predecessors, officers, directors, governors,
partners, ten percent stock or equity holders, promoters, or any selling agents of the securities
to be offered, or any officer, director, governor, or partner of the selling agent:
(i) has filed a registration statement that is the subject of a currently effective registration
stop order entered under a federal or state securities law within five years before the filing
of the small corporate offering registration application;
(ii) has been convicted within five years before the filing of the small corporate offering
registration application of a felony or misdemeanor in connection with the offer, purchase,
or sale of a security or a felony involving fraud or deceit, including, but not limited to,
forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to
defraud;
(iii) is currently subject to a state administrative enforcement order or judgment entered
by a state securities administrator or the Securities and Exchange Commission within five
years before the filing of the small corporate offering registration application, or is subject
to a federal or state administrative enforcement order or judgment in which fraud or deceit,
including, but not limited to, making untrue statements of material facts or omitting to state
material facts, was found and the order or judgment was entered within five years before
the filing of the small corporate offering registration application;
(iv) is currently subject to an order, judgment, or decree of a court of competent
jurisdiction temporarily restraining or enjoining, or is subject to an order, judgment, or
decree of a court of competent jurisdiction permanently restraining or enjoining the party
from engaging in or continuing any conduct or practice in connection with the purchase or
sale of any security or involving the making of a false filing with a state or with the Securities
and Exchange Commission entered within five years before the filing of the small corporate
offering registration application; or
(v) is subject to a state's administrative enforcement order, or judgment that prohibits,
denies, or revokes the use of an exemption for registration in connection with the offer,
purchase, or sale of securities,
(I) except that clauses (i) to (iv) do not apply if the person subject to the disqualification
is duly licensed or registered to conduct securities-related business in the state in which the
administrative order or judgment was entered against the person or if the dealer employing
the party is licensed or registered in this state and the form BD filed in this state discloses
the order, conviction, judgment, or decree relating to the person, and
(II) except that the disqualification under this subdivision is automatically waived if the
state securities administrator or federal agency that created the basis for disqualification
determines upon a showing of good cause that it is not necessary under the circumstances
to deny the registration.
(4) Filing and effectiveness of registration statement. A small corporate offering
registration statement must be filed with the administrator. If no stop order is in effect and
no proceeding is pending under section 80A.54, such registration statement shall become
effective automatically at the close of business on the 20th day after filing of the registration
statement or the last amendment of the registration statement or at such earlier time as the
administrator may designate by rule or order. For the purposes of a nonissuer transaction,
other than by an affiliate of the issuer, all outstanding securities of the same class identified
in the small corporate offering registration statement as a security registered under this
chapter are considered to be registered while the small corporate offering registration
statement is effective. A small corporate offering registration statement is effective for one
year after its effective date or for any longer period designated in an order under this chapter.
A small corporate offering registration statement may be withdrawn only with the approval
of the administrator.
(5) Contents of registration statement. A small corporate offering registration statement
under this section shall be on Form U-7, including exhibits required by the instructions
thereto, as adopted by the North American Securities Administrators Association, or such
alternative form as may be designated by the administrator by rule or order and must include:
(A) a consent to service of process complying with section 80A.88;
(B) a statement of the type and amount of securities to be offered and the amount of
securities to be offered in this state;
(C) a specimen or copy of the security being registered, unless the security is
uncertificated, a copy of the issuer's articles of incorporation and bylaws or their substantial
equivalents in effect, and a copy of any indenture or other instrument covering the security
to be registered;
(D) a signed or conformed copy of an opinion of counsel concerning the legality of the
securities being registered which states whether the securities, when sold, will be validly
issued, fully paid, and nonassessable and, if debt securities, binding obligations of the issuer;
(E) the states (i) in which the securities are proposed to be offered; (ii) in which a
registration statement or similar filing has been made in connection with the offering
including information as to effectiveness of each such filing; and (iii) in which a stop order
or similar proceeding has been entered or in which proceedings or actions seeking such an
order are pending;
(F) a copy of the offering document proposed to be delivered to offerees; and
(G) a copy of any other pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the offering and
any solicitation of interest used in compliance with section 80A.46(17)(B).
(6) Copy to purchaser. A copy of the offering document as filed with the administrator
must be delivered to each person purchasing the securities prior to sale of the securities to
such person.
(c) Offering limit. Offers and sales of securities under a small corporate offering
registration as set forth in this section are allowed up to the limit prescribed by Code of
Federal Regulations, title 17, part 230.504 (b)(2), as amended.
(d) Regulation A - Tier 2 filing requirements.
(1) Initial filing. An issuer planning to offer and sell securities in Minnesota in an
offering exempt under Tier 2 of federal Regulation A must, at least 21 calendar days before
the date of the initial sale of securities in Minnesota, submit to the administrator:
(A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the
documents filed with the Securities Exchange Commission; and
(B) a consent to service of process on Form U-2, if consent to service of process is not
provided in the Regulation A - Tier 2 offering notice filing form.
The initial notice filing made in Minnesota is effective for 12 months after the date the
filing is made.
(2) Renewal. For each additional 12-month period in which the same offering is
continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew
the notice filing by filing (i) the Regulation A - Tier 2 offering notice filing form marked
"renewal," or (ii) a cover letter or other document requesting renewal. The renewal filing
must be made on or before the date notice filing expires.
(3) Amendment. An issuer may increase the amount of securities offered in Minnesota
by submitting a Regulation A - Tier 2 offering notice filing form or other document
describing the transaction.
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(e) Notice filing requirement for federal crowdfunding offerings. This paragraph
applies to offerings made under Regulation Crowdfunding, Code of Federal Regulations,
title 17, part 227, and sections 4(a)(6) and 18(b)(4)(C) of the Securities Act of 1933, United
States Code, title 15, sections 77d(A)(6) and 77r(b)(4)(C).
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(1) Initial filing. An issuer that (i) offers and sells securities in Minnesota in an offering
exempt under federal Regulation Crowdfunding, and (ii) has a principal place of business
in Minnesota or sells at least 50 percent of the offering's aggregate amount to Minnesota
residents, must file with the administrator:
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(A) a completed Uniform Notice of Federal Crowdfunding Offering form or copies of
all documents filed with the Securities and Exchange Commission; and
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(B) if the issuer is not filing on the Uniform Notice of Federal Crowdfunding Offering
form, consent to service of process on Form U-2.
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If the issuer's principal place of business is in Minnesota, the initial filing must be submitted
with the administrator when the issuer makes the issuer's initial Form C filing concerning
the offering with the Securities and Exchange Commission. If the issuer's principal place
of business is not in Minnesota but Minnesota residents have purchased at least 50 percent
of the aggregate amount of the offering, the filing must be submitted when the issuer becomes
aware that the aggregate purchases made by Minnesota residents meets the threshold, but
no later than 30 days after the date the offering is complete. The initial notice filing is
effective for a 12-month period beginning on the date the initial filing is submitted to the
administrator.
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(2) Renewal. For each additional 12-month period in which a single offering is continued,
an issuer conducting an offering under federal Regulation Crowdfunding may renew the
issuer's notice filing by filing with the administrator on or before the date the current notice
filing expires:
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(A) a completed Uniform Notice of Federal Crowdfunding Offering form that is marked
"renewal"; or
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(B) a cover letter or other document requesting renewal
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.
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(3) Amendment. An issuer may increase the amount of securities offered in Minnesota
by submitting (i) a completed Uniform Notice of Federal Crowdfunding Offering form that
is marked "amendment," or (ii) another document that describes the modified transaction.
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Sec. 2.
Minnesota Statutes 2025 Supplement, 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; deleted text begin and
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(3) a broker-dealer must establish and maintain: (i) a set of written supervisory procedures
that reasonably prevent and detect violations of chapter 80A; Minnesota Rules, chapter
2876; or related orders issued by the commissioner; and (ii) a system to apply the procedures
established under this clause. The procedures must designate by name or title a number of
supervisory employees that is reasonable relative to the number of the broker-dealer's
registered agents, offices, and transactions in Minnesota. A copy of the written procedures
and the system to apply the procedures must be kept and maintained at each branch office
affiliated with the broker-dealer. A broker-dealer may use electronic media in accordance
with the Financial Industry Regulatory Authority Rule 3110.11, or any successor federal
law, to satisfy the obligations under this paragraph; and
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deleted text begin (3)deleted text end new text begin (4)new text end 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 organization, the North American Securities Administrators Association,
or the commissioner.
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(j) Business continuity and succession plan. An investment adviser registered or
required to be registered under this chapter must establish, maintain, and enforce written
policies and procedures relating to business continuity and succession planning. At a
minimum, the policies and procedures under this paragraph must provide:
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(1) a means to protect, back up, and recover books and records;
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(2) an alternate method to provide notice to customers; key personnel; employees;
vendors; service providers, including third-party custodians; and regulators, regarding issues
pertaining to the investment adviser's business operations, including but not limited to
significant business interruption, the death or unavailability of key personnel, other disruption
to business activities, or ceasing business operations;
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(3) a plan to relocate the office space for a principal place of business that is subject to
a temporary or permanent loss;
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(4) a plan to assign duties to qualified responsible persons if key personnel die or are
otherwise unavailable; and
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(5) a plan to otherwise minimize service disruption and client harm that might result
from sudden and significant business interruption.
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(k) Physical security and cybersecurity policies and procedures. An investment
adviser registered or required to be registered under this chapter must establish, implement,
update, and enforce written physical security and cybersecurity policies and procedures that
are designed to ensure the confidentiality, integrity, and availability of physical and electronic
records and information. The policies and procedures must be tailored to the investment
adviser's business model and must take into account the investment advisor's business size,
type of service provided, and number of locations.
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(1) The physical security and cybersecurity policies and procedures must:
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(A) protect against reasonably anticipated threats or hazards to the security or integrity
of client records and information;
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(B) ensure that the investment adviser protects confidential client records and information;
and
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(C) protect client records and information that, if released, might result in harm or
inconvenience to the client.
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(2) At a minimum, the physical security and cybersecurity policies and procedures must
develop and implement:
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(A) an organizational understanding to manage information security risk with respect
to systems, assets, data, and capabilities;
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(B) safeguards to ensure delivery of critical infrastructure services;
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(C) actions and tools to identify when an information security event occurs;
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(D) actions to take when a information security event is detected; and
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(E) plans for security and system resilience, and to restore capabilities or services that
are impaired due to an information security event.
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(3) At the time a client engages an investment adviser and on an annual basis thereafter,
an investment adviser must deliver to the client a privacy policy that is reasonably designed
to assist the client understand how the investment adviser collects and shares, to the extent
permitted by state and federal law, nonpublic personal information. If information in the
policy becomes materially inaccurate, the investment adviser must promptly update and
deliver an amended privacy policy to the client.
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(l) Written confirmation. A broker-dealer must promptly provide to the customer a
written confirmation at or before completing a transaction in accordance with the Financial
Industry Regulatory Authority Rule 2232, or any successor federal law. The confirmation
must:
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(1) describe the security purchased or sold, the date of the transaction, the price of the
security purchased or sold, and any commission charged;
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(2) indicate whether the broker-dealer acted for the broker-dealer's account, as an agent
for a customer, as an agent for another person, or an agent for both a customer and another
person;
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(3) if the broker-dealer is acting as an agent for a customer, include (i) the name of the
person who purchased the security, (ii) the name of the person who sold the security, or (iii)
a statement that the information in item (i) or (ii) is available to a customer on request if
the broker-dealer knows the information or is able to ascertain the information with
reasonable diligence;
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(4) indicate whether the transaction was unsolicited; and
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(5) indicate the name of the agent that executed the transaction.
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A broker-dealer that complies with Securities and Exchange Commission Rule 10b-10,
Code of Federal Regulations, title 17, part 240.10b-10, or article III, section 12, of the
Financial Industry Regulatory Authority Rules of Fair Practice, complies with this paragraph.
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(m) Conditions; stipulations; provisions. A broker-dealer is prohibited from entering
into a contract with a customer if the contract contains a condition, stipulation, or provision
that binds the customer to waive rights under chapter 80A; Minnesota Rules, chapter 2876;
or an order issued by the commissioner. A condition, stipulation, or provision included in
a contract subject to this paragraph is void.
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(n) Principal office; employment. A broker-dealer whose principal office is located in
Minnesota must have at least one registered person employed on a full-time basis at the
principal office located in Minnesota. This paragraph does not apply to a broker-dealer
engaged solely in offering and selling:
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(1) interests in a direct participation program; or
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(2) securities issued by open-end investment companies, face amount certificate
companies, or unit investment trusts registered under the Investment Company Act of 1940,
United States Code, title 15, sections 80a-1 to 80a-64.
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Sec. 3.
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[80A.691] BROKER-DEALERS; AGENTS; DISHONEST OR UNETHICAL
BUSINESS PRACTICES.
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new text begin Subdivision 1. new text end
new text begin Broker-dealers; standards and principles. new text end
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A broker-dealer must observe
high standards of commercial honor and just and equitable principles of trade when
conducting the broker-dealer's business. An act or practice that is contrary to the standards
constitutes grounds for the administrator to deny, suspend, or revoke the broker-dealer's
registration or to take other action authorized by statute. For purposes of this subdivision,
an act or practice that is contrary to the standards includes:
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(1) engaging in a pattern of unreasonable and unjustifiable delays with respect to: (i)
delivering securities purchased by a customer; or (ii) upon request, paying free credit balances
reflecting a customer's completed transactions;
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(2) inducing trading in a customer's account that is excessive in size or frequency
considering the account's financial resources and character;
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(3) recommending that a customer purchase, sell, or exchange a security without
reasonable grounds to believe the transaction or recommendation is suitable for the customer,
based on: (i) a reasonable inquiry regarding the customer's investment objectives, financial
situation, and needs; and (ii) other relevant information known by the broker-dealer;
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(4) recommending a security transaction or investment strategy involving securities,
including account recommendations, to a retail customer if the recommendation does not
comply with the obligations set forth in Code of Federal Regulations, title 17, section
240.15l-1;
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(5) executing a transaction on behalf of a customer without the customer's authorization;
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(6) exercising discretionary power to effect a transaction for a customer's account without
first obtaining written discretionary authority from the customer, unless the discretionary
power relates solely to the time the order is executed or the order's price;
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(7) executing a transaction in a margin account without securing from the customer a
properly executed written margin agreement promptly after the account's initial transaction;
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(8) failing to segregate customers' free securities or securities held in safekeeping;
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new text begin
(9) hypothecating a customer's securities without having a lien on the customer's
securities, unless the broker-dealer secures the customer's properly executed written consent
promptly after the initial transaction, except as permitted by Securities and Exchange
Commission regulations;
new text end
new text begin
(10) entering into a transaction with or for a customer at a price that is not reasonably
related to the security's current market price, or receiving an unreasonable commission or
profit;
new text end
new text begin
(11) failing to furnish to a customer purchasing securities in an offering, no later than
the due date for the transaction's confirmation: (i) a final prospectus; or (ii) a preliminary
prospectus and an additional document that, when combined with the preliminary prospectus,
includes all of the information included in the final prospectus;
new text end
new text begin
(12) charging an unreasonable or inequitable fee for services performed, including: (i)
miscellaneous services that include but are not limited to collecting money due for principal,
dividends or interest, exchanging or transferring securities, appraisals, safekeeping, or
maintaining custody of securities; and (ii) other services related to the broker-dealer's
securities business;
new text end
new text begin
(13) offering to buy or sell a security at a stated price if the broker-dealer is not prepared
to purchase or sell at the stated price and under the stated conditions at the time the offer
to buy or sell is made;
new text end
new text begin
(14) representing that a security is being offered to a customer "at the market" or at a
price relevant to the market price, unless the broker-dealer knows or has reasonable grounds
to believe a market for the security exists other than the market made, created, or controlled
by: (i) the broker-dealer; (ii) a person for whom the broker-dealer is acting or with whom
the broker-dealer is associated with respect to the security's distribution; or (iii) a person
controlled by, controlling, or under common control with the broker-dealer;
new text end
new text begin
(15) effecting a transaction in, or inducing the purchase or sale of, a security using a
manipulative, deceptive, or fraudulent device, practice, plan, program, design, or contrivance,
which includes but is not limited to:
new text end
new text begin
(i) effecting a transaction in a security that involves no change in the security's beneficial
ownership;
new text end
new text begin
(ii) entering an order to purchase or sell a security with the knowledge that at least one
other order for the same security that is substantially the same size, entered at substantially
the same time, and for substantially the same price as the order has been or will be entered
by or for the same or a different party to create (A) a false or misleading appearance of
active trading in the security, or (B) a false or misleading appearance with respect to the
market for the security. This item does not prohibit a broker-dealer from entering bona fide
agency cross transactions for the broker-dealer's customers; or
new text end
new text begin
(iii) effecting, alone or with another person, a series of transactions in a security that
creates actual or apparent active trading in the security, or raises or reduces the price of the
security, to induce others to purchase or sell the security;
new text end
new text begin
(16) guaranteeing a customer against loss in: (i) a securities account the broker-dealer
carries for the customer; (ii) a securities transaction effected by the broker-dealer; or (iii) a
securities transaction effected by the broker-dealer with or for the customer;
new text end
new text begin
(17) publishing or circulating, or causing to be published or circulated, a notice, circular,
advertisement, newspaper article, investment service, or communication of any kind that
purports to: (i) report a transaction as a purchase or sale of a security, unless the broker-dealer
believes that the transaction was a bona fide purchase or sale of the security; or (ii) quote
the bid price or asked price for a security, unless the broker-dealer believes the quote
represents a bona fide bid for or offer of the security;
new text end
new text begin
(18) using an advertising or sales presentation in a manner that is deceptive or misleading,
including but not limited to distributing: (i) nonfactual data, material, or a presentation based
on conjecture, unfounded or unrealistic claims; or (ii) assertions in a brochure, flyer, or
display using words, pictures, graphs, or other representations that are designed to
supplement, detract from, supersede, or defeat a prospectus' or disclosure's purpose or effect;
new text end
new text begin
(19) failing to disclose to a customer, before entering into a contract with or for a customer
to purchase or sell a security, that the broker-dealer is controlled by, controlling, affiliated
with, or under common control with the security's issuer. If a disclosure under this clause
is not made in writing, the disclosure must be supplemented by giving or sending written
disclosure before or at the time the transaction is completed;
new text end
new text begin
(20) failing to make a bona fide public offering of all of the securities allotted to a
broker-dealer for distribution, whether the securities are acquired as an underwriter, a selling
group member, or from a member participating in the distribution as an underwriter or
selling group member;
new text end
new text begin
(21) failing or refusing to: (i) furnish a customer, upon reasonable request, information
the customer is entitled to; or (ii) respond to a formal written request or complaint;
new text end
new text begin
(22) failing to pay and fully satisfy a final judgment or arbitration award resulting from
an arbitration or court proceeding relating to an investment and initiated by the customer,
unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an
alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies
with the terms of the alternative payment arrangement;
new text end
new text begin
(23) attempting to avoid paying a final judgment or arbitration award resulting from an
arbitration or court proceeding relating to an investment and initiated by the customer,
unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an
alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies
with the terms of the alternative payment arrangement;
new text end
new text begin
(24) failing to pay and fully satisfy a fine, civil penalty, order of restitution, order of
disgorgement, or similar monetary payment obligation imposed upon the broker-dealer or
broker-dealer's agent by the Securities and Exchange Commission, a state or provincial
securities or other financial services regulator, or a self-regulatory organization;
new text end
new text begin
(25) accessing a client's account by using the client's unique identifying information,
including but not limited to the client's username and password;
new text end
new text begin
(26) in connection with soliciting a sale or purchase of an over-the-counter non-NASDAQ
security, failing to promptly provide the most current prospectus or the most recently filed
periodic report filed under Section 13 of the Securities Exchange Act of 1934, United States
Code, title 15, section 78m, as amended, if the broker-dealer receives a request from a
customer;
new text end
new text begin
(27) marking an order ticket or confirmation as unsolicited if the transaction is solicited;
new text end
new text begin
(28) for each month in which activity has occurred in a customer's account and no less
frequently than once every three months regardless of whether customer account activity
has occurred, failing to provide the customer with an account statement that, with respect
to all over-the-counter non-NASDAQ equity securities in the account, contains a value for
each security based on the closing market bid on a date certain. This clause applies only if
the broker-dealer has been a market maker in the security at any time during the month in
which the monthly or quarterly statement is issued; or
new text end
new text begin
(29) failing to comply with an applicable provision of the Financial Industry Regulatory
Authority conduct rules or an applicable fair practice or ethical standard promulgated by
the Securities and Exchange Commission or a self-regulatory organization approved by the
Securities and Exchange Commission.
new text end
new text begin Subd. 2. new text end
new text begin Broker-dealer's agents; standards and principles. new text end
new text begin
A broker-dealer's agent
must observe high standards of commercial honor and just and equitable principles of trade
when conducting the broker-dealer's agent's business. An act or practice that is contrary to
the standards constitutes grounds for the administrator to deny, suspend, or revoke the
broker-dealer's agent's registration or to take other action authorized by statute. For purposes
of this subdivision, an act or practice that is contrary to the standards includes:
new text end
new text begin
(1) lending to or borrowing from a customer money or securities, or acting as a custodian
for a customer's money, securities, or executed stock power, unless otherwise permissible
under the Financial Industry Regulatory Authority Rule 3240, or any successor federal law;
new text end
new text begin
(2) effecting securities transactions that are not recorded on the regular books or records
maintained by the broker-dealer the broker-dealer's agent represents, unless the transactions
are authorized in writing by the broker-dealer before executing the transaction or exempt
as subscription-way transactions under Code of Federal Regulations, title 17, section
240.17a-3, or any successor federal law;
new text end
new text begin
(3) establishing or maintaining an account that contains fictitious information in order
to execute transactions that are otherwise prohibited;
new text end
new text begin
(4) sharing directly or indirectly in profits or losses in a customer account without the
written authorization from the customer and the broker-dealer the broker-dealer's agent
represents;
new text end
new text begin
(5) dividing or otherwise splitting the broker-dealer's agent's commissions, profits, or
other compensation from purchasing or selling securities with a person who is not also
registered as a broker-dealer's agent for the same broker-dealer or for a broker-dealer under
direct or indirect common control or unless otherwise allowed under the Security Exchange
Act of 1934 rules, guidance, or authorization; or
new text end
new text begin
(6) engaging in the conduct specified under subdivision 1, clause (2), (3), (4), (5), (6),
(7), (10), (11), (15), (16), (17), (18), (22), (23), (24), (25), (26), (27), (28), or (29).
new text end
new text begin Subd. 3. new text end
new text begin Conduct specified not exclusive. new text end
new text begin
The conduct identified as a violation under
subdivisions 1 and 2 is not exclusive. A broker-dealer or broker-dealer's agent that engages
in other conduct, including but not limited to forgery, embezzlement, nondisclosure,
incomplete disclosure or misstatement of material facts, or manipulative or deceptive
practices, is also subject to denial, suspension, or revocation of registration.
new text end
Sec. 4.
Minnesota Statutes 2024, section 80C.12, subdivision 1, is amended to read:
Subdivision 1.
Grounds.
The commissioner, with or without prior notice or hearing,
may issue a cease and desist order and may issue an order denying, suspending or revoking
any registration, amendment or exemption on finding any of the following:
deleted text begin (a)deleted text end new text begin (1)new text end that the applicant, registrant or franchisor or any officer, director, agent or
employee thereof or any other person has violated or failed to comply with any provision
of sections 80C.01 to 80C.22 or any rule or order of the commissioner;
deleted text begin (b)deleted text end new text begin (2)new text end that the offer, sale, or purchase of the franchise would constitute misrepresentation
to or deceit or fraud upon purchasers thereof, or has worked or tended to work a fraud upon
purchasers or would so operate;
deleted text begin (c)deleted text end new text begin (3)new text end that the applicant, registrant or franchisor or any officer, director, agent or
employee thereof or any other person is engaging or about to engage in false, fraudulent or
deceptive practices in connection with the offer and sale of a franchise;
deleted text begin (d)deleted text end new text begin (4)new text end that any person identified in a public offering statement has beennew text begin :new text end new text begin (i)new text end convicted
of an offensenew text begin or held liable in a civil action by final judgmentnew text end described in section 80C.04,new text begin
subdivision 1, paragraph (e),new text end clause deleted text begin (5)deleted text end new text begin (1)new text end new text begin , has a civil or criminal action pending as described
in section 80C.04, subdivision 1, paragraph (e), clause (5)new text end , or is subject to an orderdeleted text begin , or has
had a civil judgment entered against the person as described in section 80C.04, clause (5),deleted text end new text begin
described in section 80C.04, subdivision 1, paragraph (e), clauses (2) to (4);new text end andnew text begin (ii)new text end the
involvement of the person in the business of the applicant or franchisor creates a substantial
risk to prospective franchisees;
deleted text begin (e)deleted text end new text begin (5)new text end that the financial condition of the franchisor adversely affects or would adversely
affect the ability of the franchisor to fulfill its obligations under the franchise agreement;
deleted text begin (f)deleted text end new text begin (6)new text end that the franchisor's enterprise or method of business includes or would include
activities which are illegal where performed;new text begin or
new text end
deleted text begin (g)deleted text end new text begin (7)new text end that the method of sale or proposed method of sale of franchises or the operation
of the business of the franchisor or any term or condition of the franchise agreement or any
practice of the franchisor is or would be unfair or inequitable to franchisees.
ARTICLE 9
TELECOMMUNICATIONS
Section 1.
Minnesota Statutes 2024, section 237.035, is amended to read:
237.035 TELECOMMUNICATIONS CARRIER EXEMPTION.
(a) Telecommunications carriers are subject to regulation under this chapter only to the
extent required under paragraphs (b) to (e).
(b) Telecommunications carriers shall comply with sections 237.121 and 237.74.
(c) Telecommunications carriers shall comply with section 237.16, deleted text begin subdivisionsdeleted text end new text begin
subdivisionnew text end 8 deleted text begin and 9deleted text end .
(d) To the extent a telecommunications carrier offers local service, it shall obtain a
certificate under section 237.16 for that local service.
(e) In addition, a telecommunications carrier's local service is subject to this chapter
except that:
(1) a telecommunications carrier is not subject to rate-of-return or earnings investigations
under section 237.075 or 237.081; and
(2) a telecommunications carrier is not subject to section 237.22.
Sec. 2.
Minnesota Statutes 2024, section 237.036, is amended to read:
237.036 COIN-OPERATED OR PUBLIC PAY TELEPHONES.
deleted text begin
(a) Neither commission approval nor a commission certificate is required to:
deleted text end
deleted text begin
(1) site a coin-operated or public pay telephone in the state; or
deleted text end
deleted text begin
(2) implement changes in service, services offered, rates, or location regarding a
coin-operated or public pay telephone. Registration under section 237.64 is required to own
or operate a coin-operated or public pay telephone in the state.
deleted text end
deleted text begin
(b) This section does not change the authority of other state or local government entities
to regulate aspects of coin-operated or public pay telephone ownership, location, or operation;
however, an entity may not regulate aspects of these services that it did not regulate prior
to May 26, 1999. The commission shall retain the authority delegated to it under federal
and state law to protect the public interest with regard to coin-operated or public pay
telephones.
deleted text end
deleted text begin
(c) Owners and operators of coin-operated or public pay telephones are exempt from
sections 237.06, 237.07, 237.075, 237.09, 237.23, and 237.295, and the annual reporting
requirement of section 237.11.
deleted text end
deleted text begin (d)deleted text end Owners of coin-operated or public pay telephones shall:
(1) provide immediate coin-free access, to the extent technically feasible, to 911
emergency service or to another approved emergency service; and
(2) provide free access to the telecommunications relay service for people with
communication disabilities.
deleted text begin
(e) Owners of coin-operated or public pay telephones must post at each coin-operated
or public pay telephone location:
deleted text end
deleted text begin
(1) customer service and complaint information, including the name, address, and
telephone number of the owner of the coin-operated or public pay telephone and the operator
service handling calls from the coin-operated or public pay telephone; a toll-free number
of the appropriate telephone company for the resolution of complaints; and the toll-free
number of the public utilities commission; and
deleted text end
deleted text begin
(2) a toll-free number at which consumers can obtain pricing information regarding
rates, charges, terms, and conditions of local and long-distance calls.
deleted text end
Sec. 3.
Minnesota Statutes 2024, section 237.069, is amended to read:
237.069 TRACER; HARASSING TELEPHONE CALL; RULES.
deleted text begin
The commission shall adopt rules to govern how telephone companies respond to requests
for tracers made by persons who allege receiving harassing telephone calls. The rules must
address when a request for a tracer may be denied or delayed.
deleted text end
new text begin
A telecommunications carrier
operating in Minnesota must ensure the telecommunications carrier's equipment, facilities,
and services are capable of enabling authorized law enforcement agencies to conduct lawful
interception and access call-identifying information in a manner consistent with United
States Code, title 47, sections 1001 to 1010.
new text end
Sec. 4.
Minnesota Statutes 2024, section 237.07, subdivision 1, is amended to read:
Subdivision 1.
Filing of charges.
Every telephone company shall keep on file with the
department a specific rate, toll, or charge for every kind of noncompetitive service and a
price list for every kind of service subject to emerging competition, together with all rules
and classifications used by it in the conduct of the telephone business, including limitations
on liability. The filings are governed by chapter 13. When a company sells services subject
to emerging competition on an individually priced basis, it shall file a statement of the
charges to its customers with the commission and the department. deleted text begin The department shall
require each telephone company to keep open for public inspection, at designated offices,
so much of these rates, price lists, and rules as it deems necessary for the public information.
deleted text end
Sec. 5.
Minnesota Statutes 2024, section 237.11, is amended to read:
237.11 INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.
new text begin (a) new text end Every telephone company subject to the provisions of this chapter, wherever
organized, shall deleted text begin keep an office in this state, anddeleted text end make such reports to the department as it
shall from time to time require. All books, records, and filesdeleted text begin , whether they relate to
competitive or noncompetitive services,deleted text end and all of its property shall be at all times subject
to inspection by the commission and the department. It shall close its accounts and take
therefrom a balance sheet on December 31 of each year, and on or before May 1 following,
such balance sheet, together with such other information as the department shall require,
verified by an officer of the telephone company, shall be filed with the commission and the
department, except that a local exchange carrier or a competitive local exchange carrier, as
defined in Minnesota Rules, chapter 7811, is only required to file an annual report that
includes the company's name, contact person, annual revenue, and status of its 911 update
plan.
new text begin (b) new text end In the event that any telephone company shall fail to file its annual report, as provided
by this section, the department is authorized to make such an examination of the books,
records, and vouchers of the company as is necessary to procure the necessary data for the
annual report and cause the same to be prepared. The expense of procuring this data and
preparing this report shall be paid by the telephone company failing to report, and the amount
paid shall be credited by the commissioner of management and budget to funds appropriated
for the expense of the department.
new text begin (c) new text end The department is authorized to force collection of such sum by an action at law in
the name of the department.
Sec. 6.
Minnesota Statutes 2024, section 237.164, is amended to read:
237.164 UNIVERSAL SERVICE DISCOUNT FOR SCHOOL OR LIBRARY.
deleted text begin
The commission shall establish intrastate service discounts for schools and libraries by
order to the extent necessary to enable schools and libraries to receive federally supported
discounts.
deleted text end
new text begin
A school, school district, or library is eligible to receive telecommunications
service at discounted rates, consistent with the E-Rate program administered by the Universal
Service Administrative Company under United States Code, title 47, section 254, and Code
of Federal Regulations, title 47, part 54.
new text end
Sec. 7.
Minnesota Statutes 2024, section 237.626, subdivision 1, is amended to read:
Subdivision 1.
Promotions.
A telephone company or telecommunications carrier may
promote the use of its services by offering a waiver of part or all of a recurring or a
nonrecurring charge, a redemption coupon, or a premium with the purchase of a service.
Section 237.09 does not apply to promotions under this section, but the customer group to
which the promotion is available must be based on reasonable distinctions among customers.
The service being promoted must have a price that is above the incremental cost of the
service, including amortized cost of the promotion. deleted text begin A promotion may take effect the day
after the notice is filed with the commission. The notice must identify customers to whom
the promotion is available.
deleted text end
Sec. 8.
Minnesota Statutes 2024, section 237.626, subdivision 3, is amended to read:
Subd. 3.
Promotions available for resale.
Any promotional offering deleted text begin lasting more than
90 days and filed with the commission under subdivision 1 must bedeleted text end new text begin does not need to be
madenew text end available to qualifying carriers for resale. deleted text begin Adeleted text end new text begin If a telephone company or
telecommunications carrier makes a promotional offering available to a qualifying carrier
for resale, thenew text end qualifying carrier must hold a certificate of authority from the commission
and must have an approved interconnection agreement with the company offering the
promotion, the terms of which include language governing the resale of services.
Sec. 9.
Minnesota Statutes 2024, section 237.66, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Notice; local residential customers. new text end
new text begin
A telephone company must notify a
residential customer regarding the price for all service options available to the customer. A
notice must be provided:
new text end
new text begin
(1) at the time the customer initially requests service;
new text end
new text begin
(2) when the customer requests a service change; and
new text end
new text begin
(3) at any time upon the customer's request.
new text end
Sec. 10.
Minnesota Statutes 2024, section 237.66, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Customer notice; prior authorization. new text end
new text begin
A telephone company may provide
the notice under subdivision 4 to a customer using paper billing, electronic billing, or other
electronic communication methods if:
new text end
new text begin
(1) the customer affirmatively opts in to electronic billing or electronic communication;
new text end
new text begin
(2) the information in the notice is provided clearly and accessibly; and
new text end
new text begin
(3) the customer is allowed to request a paper copy of service option pricing at any time
and at no charge to the customer.
new text end
Sec. 11.
Minnesota Statutes 2024, section 237.70, subdivision 7, is amended to read:
Subd. 7.
Application, notice, financial administration, complaint investigation.
The
telephone assistance plan must be administered jointly by the commission, the Department
of Commerce, and the local service providers in accordance with the following guidelines:
(a) The commission and the Department of Commerce shall develop an application form
that must be completed by the subscriber for the purpose of certifying eligibility for telephone
assistance plan credits to the local service provider. The application must contain the
applicant's Social Security number. Applicants who refuse to provide a Social Security
number will be denied telephone assistance plan credits. The application form must also
include a statement that the applicant household is currently eligible for one of the programs
that confers eligibility for the federal Lifeline Program. The application must be signed by
the applicant, certifying, under penalty of perjury, that the information provided by the
applicant is true.
(b) Each local service provider shall annually mail a notice of the availability of the
telephone assistance plan to each residential subscriber in a regular billing and shall mail
the application form to customers when requested.
The notice must state the following:
YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE
BILL IF YOU RECEIVE BENEFITS FROM CERTAIN LOW-INCOME ASSISTANCE
PROGRAMS. FOR MORE INFORMATION OR AN APPLICATION FORM PLEASE
CONTACT .........
(c) An application may be made by the subscriber, the subscriber's spouse, or a person
authorized by the subscriber to act on the subscriber's behalf. On completing the application
certifying that the statutory criteria for eligibility are satisfied, the applicant must return the
application to the subscriber's local service provider. On receiving a completed application
from an applicant, the subscriber's local service provider shall provide telephone assistance
plan credits against monthly charges in the earliest possible month following receipt of the
application. The applicant must receive telephone assistance plan credits until the earliest
possible month following the service provider's receipt of information that the applicant is
ineligible.
If the telephone assistance plan credit is not itemized on the subscriber's monthly charges
bill for local telephone service, the local service provider must notify the subscriber of the
approval for the telephone assistance plan credit.
(d) The commission shall serve as the coordinator of the telephone assistance plan and
be reimbursed for its administrative expenses from the surcharge revenue pool. As the
coordinator, the commission shall:
(1) establish a uniform statewide surcharge in accordance with subdivision 6;
deleted text begin
(2) establish a uniform statewide level of telephone assistance plan credit that each local
service provider shall extend to each eligible household in its service area;
deleted text end
deleted text begin (3)deleted text end new text begin (2)new text end require each local service provider to account to the commission on a periodic
basis for surcharge revenues collected by the provider, expenses incurred by the provider,
not to include expenses of collecting surcharges, and credits extended by the provider under
the telephone assistance plan;
deleted text begin (4)deleted text end new text begin (3)new text end require each local service provider to remit surcharge revenues to the Department
of Public Safety for deposit in the fund; and
deleted text begin (5)deleted text end new text begin (4)new text end remit to each local service provider from the surcharge revenue pool the amount
necessary to compensate the provider for expenses, not including expenses of collecting
the surcharges, and telephone assistance plan credits. When it appears that the revenue
generated by the maximum surcharge permitted under subdivision 6 will be inadequate to
fund any particular established level of telephone assistance plan credits, the commission
shall reduce the credits to a level that can be adequately funded by the maximum surcharge.
Similarly, the commission may increase the level of the telephone assistance plan credit
that is available or reduce the surcharge to a level and for a period of time that will prevent
an unreasonable overcollection of surcharge revenues.
(e) Each local service provider shall maintain adequate records of surcharge revenues,
expenses, and credits related to the telephone assistance plan and shall, as part of its annual
report or separately, provide the commission and the Department of Commerce with a
financial report of its experience under the telephone assistance plan for the previous year.
That report must also be adequate to satisfy the reporting requirements of the federal matching
plan.
(f) The Department of Commerce shall investigate complaints against local service
providers with regard to the telephone assistance plan and shall report the results of its
investigation to the commission.
Sec. 12.
Minnesota Statutes 2024, section 237.762, subdivision 5, is amended to read:
Subd. 5.
Income-neutral change.
Other than as authorized in this subdivision, an initial
alternative regulation plan must not permit income-neutral rate changes for price-regulated
services during the plan except as is necessary to implement extended area service or any
successor to that service. Any plan must provide that after the rules issued pursuant to section
237.16 are adopted, rates for price-regulated services may be increased, as approved by the
commission, to the extent necessary to carry out the purpose of those rules. deleted text begin However, rate
increases, if any, for those services must be incorporated with a universal service fund so
that the effective rate for the customers of those services does not increase during the first
three years of the plan.
deleted text end
Sec. 13. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 237.065; 237.066; 237.067; 237.071; 237.072; 237.075,
subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11; 237.14; 237.15; 237.16, subdivision 9;
237.22; 237.231; 237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, and 10; 237.66, subdivisions
1, 1a, 1c, 1d, 2, 2a, and 3; 237.75; 237.766; 237.768; 237.772; and 237.775,
new text end
new text begin
are repealed.
new text end
ARTICLE 10
INSURANCE AND FINANCIAL PRODUCTS
Section 1.
new text begin
[48.741] VIRTUAL-CURRENCY CUSTODY SERVICES.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Control of virtual currency" has the meaning given in section 53B.69, subdivision
2.
new text end
new text begin
(c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6.
new text end
new text begin
(d) "Virtual-currency custody services" means safekeeping, controlling, or managing
virtual currency, or the cryptographic private keys used to access virtual currency, on behalf
of another person.
new text end
new text begin Subd. 2. new text end
new text begin Authority. new text end
new text begin
A banking institution may provide virtual-currency custody services
in a fiduciary or nonfiduciary capacity, subject to this section and applicable state and federal
law.
new text end
new text begin Subd. 3. new text end
new text begin Safety and soundness. new text end
new text begin
A banking institution that engages in virtual-currency
custody services must conduct the activity in a safe and sound manner and must maintain
written policies and procedures governing risk management, internal controls, cybersecurity,
business continuity, and compliance.
new text end
new text begin Subd. 4. new text end
new text begin Notice to commissioner. new text end
new text begin
A banking institution must provide written notice to
the commissioner at least 60 days before commencing virtual-currency custody services.
The notice must describe the nature of the services and the banking institution's risk
management framework.
new text end
new text begin Subd. 5. new text end
new text begin Fiduciary capacity. new text end
new text begin
(a) A banking institution may provide virtual-currency
custody services in a fiduciary or custodial capacity, including as agent, bailee, or trustee
for the limited purpose of safekeeping or administration of virtual currency, to the same
extent the banking institution may lawfully hold or safeguard other assets for customers.
new text end
new text begin
(b) The commissioner may limit or condition the authority to provide virtual-currency
custody services under paragraph (a) only if the commissioner determines the activity is
conducted in an unsafe or unsound manner.
new text end
new text begin Subd. 6. new text end
new text begin Segregation of assets. new text end
new text begin
A banking institution must structure virtual-currency
custody services to ensure that customer virtual currency and associated control mechanisms
are legally and operationally segregated from the banking institution's assets and are not
treated as the banking institution's property, consistent with the segregation of assets held
in other custodial or fiduciary capacities and the concept of control of controllable electronic
records under sections 336.12-101 to 336.12-107.
new text end
new text begin Subd. 7. new text end
new text begin Third-party service providers. new text end
new text begin
A banking institution may engage one or more
qualified third-party service providers or subcustodians to facilitate virtual-currency custody
services, provided the banking institution retains oversight responsibility and ensures
compliance with this section.
new text end
new text begin Subd. 8. new text end
new text begin Supervision and examination. new text end
new text begin
A banking institution's virtual-currency custody
services are subject to examination by the commissioner as part of the regular supervisory
process.
new text end
new text begin Subd. 9. new text end
new text begin Construction. new text end
new text begin
This section does not (1) authorize a banking institution to
engage in activities otherwise prohibited by law, or (2) alter the legal characterization of
virtual currency under state or federal law.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to
virtual-currency custody services commenced on or after that date.
new text end
Sec. 2.
Minnesota Statutes 2024, section 52.063, subdivision 3, is amended to read:
Subd. 3.
Appointment of National Credit Union Administration Board as
receiver.
Upon a request by the commissioner of commerce, the court may appoint the
National Credit Union Administration Board, created by section 3 of the Federal Credit
Union Act, as amended,new text begin or a share insurance provider approved by the commissionernew text end as
receiver of a credit union, without bond, when the deposits of the credit union are to any
extent insured by the National Credit Union Administration Boardnew text begin or approved share
insurance providernew text end , and the credit union has had its operations suspended or has executed
a consent cease and desist order with the commissioner in lieu of a suspension under section
52.062. Notwithstanding any other provisions of law, the commissioner of commerce may,
in the event of the suspension or consent cease and desist order, tender to the National Credit
Union Administration Boardnew text begin or approved share insurance providernew text end the proposed appointment
as receiver of the credit union. If the National Credit Union Administration Boardnew text begin or approved
share insurance providernew text end accepts the proposed appointment and the court appoints the
National Credit Union Administration Boardnew text begin or approved share insurance providernew text end as receiver
upon a request by the commissioner, the National Credit Union Administration Boardnew text begin or
approved shared insurance providernew text end shall have and possess all the powers and privileges
provided by the laws of this state and section 207 of the Federal Credit Union Act, as
amended, with respect to a receiver of a credit union, the board of directors of the credit
union, and its members.
Sec. 3.
Minnesota Statutes 2024, section 52.24, subdivision 1, is amended to read:
Subdivision 1.
Insurance accounts.
Every credit union under the supervision of the
commissioner of commerce shall at all times maintain in effect insurance of member share
and deposit accounts under the provisions of title II of the National Credit Union Actnew text begin or
through a credit union share guaranty corporation that is approved by the commissionernew text end . A
credit union deleted text begin whichdeleted text end new text begin thatnew text end fails to meet this requirement for insurance of its share and deposit
accounts shall either dissolve or merge with another credit union deleted text begin whichdeleted text end new text begin thatnew text end is insured under
title II of the National Credit Union Actnew text begin or through a credit union share guaranty corporation
that is approved by the commissionernew text end .
Sec. 4.
Minnesota Statutes 2024, section 52.24, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Credit union share guaranty corporation; accounts insured. new text end
new text begin
(a) A credit
union share account of an individual member or a nonmember of a participating credit union
must be guaranteed in an amount established from time to time by the credit union share
guaranty corporation. The primary guaranteed amount must be at least the amount of the
credit union share account but must not exceed $250,000 or the primary guaranteed amount
insured by the National Credit Union Administration, whichever is greater.
new text end
new text begin
(b) The commissioner may examine a credit union share guaranty corporation that insures
the member accounts of a credit union that is subject to this section. The commissioner may
assess the credit union share guaranty corporation examined for reasonable costs incurred
to conduct an examination under this section. Money received from an assessment under
this paragraph must be deposited in the financial institutions account in the special revenue
fund.
new text end
new text begin
(c) A credit union is prohibited from voluntarily terminating the credit union's insurance
with the National Credit Union Administration Share Insurance Program or a credit union
share guaranty corporation without receiving approval from the commissioner.
new text end
Sec. 5.
Minnesota Statutes 2024, section 52.24, subdivision 2, is amended to read:
Subd. 2.
Certificate of approval.
No credit union shall be granted a certificate of
approval by the commissioner of commerce unless the credit union has obtained a
commitment for insurance of its member share and deposit accounts under the provisions
of title II of the National Credit Union Actnew text begin or from an approved credit union share guaranty
corporationnew text end .
Sec. 6.
new text begin
[52.25] VIRTUAL-CURRENCY CUSTODY SERVICES.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Control of virtual currency" or "control" has the meaning given in section 53B.69,
subdivision 2.
new text end
new text begin
(c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6.
new text end
new text begin
(d) "Virtual-currency custody services" means safekeeping, controlling, or managing
virtual currency, or the cryptographic private keys used to access virtual currency, on behalf
of another person.
new text end
new text begin Subd. 2. new text end
new text begin Authority. new text end
new text begin
A credit union may provide virtual-currency custody services to
the credit union's members in a fiduciary or nonfiduciary capacity, subject to this section
and applicable state and federal law.
new text end
new text begin Subd. 3. new text end
new text begin Safety and soundness. new text end
new text begin
A credit union that engages in virtual-currency custody
services must conduct the activity in a safe and sound manner and must maintain written
policies and procedures governing risk management, internal controls, cybersecurity, business
continuity, and compliance.
new text end
new text begin Subd. 4. new text end
new text begin Notice to commissioner. new text end
new text begin
A credit union must provide written notice to the
commissioner at least 60 days before commencing virtual-currency custody services. The
notice must describe the nature of the services and the credit union's risk management
framework.
new text end
new text begin Subd. 5. new text end
new text begin Fiduciary capacity. new text end
new text begin
(a) A credit union may provide virtual-currency custody
services in a fiduciary or custodial capacity, including as agent, bailee, or trustee for the
limited purpose of safekeeping or administration of virtual currency, to the same extent the
credit union may lawfully hold or safeguard other assets for members or customers.
new text end
new text begin
(b) The commissioner may limit or condition the authority to provide virtual-currency
custody services under paragraph (a) only if the commissioner determines the activity is
conducted in an unsafe or unsound manner.
new text end
new text begin Subd. 6. new text end
new text begin Segregation of assets. new text end
new text begin
A credit union must structure virtual-currency custody
services to ensure that customer virtual currency and associated control mechanisms are
legally and operationally segregated from the credit union's assets and are not treated as the
credit union's property, consistent with the segregation of assets held in other custodial or
fiduciary capacities and the concept of control of controllable electronic records under
sections 336.12-101 to 336.12-107.
new text end
new text begin Subd. 7. new text end
new text begin Third-party service providers. new text end
new text begin
A credit union may engage one or more
qualified third-party service providers or subcustodians to facilitate virtual-currency custody
services, provided the credit union retains oversight responsibility and ensures compliance
with this section.
new text end
new text begin Subd. 8. new text end
new text begin Supervision and examination. new text end
new text begin
A credit union's virtual-currency custody
services are subject to examination by the commissioner as part of the regular supervisory
process.
new text end
new text begin Subd. 9. new text end
new text begin Construction. new text end
new text begin
This section does not (1) authorize a credit union to engage in
activities otherwise prohibited by law, or (2) alter the legal characterization of virtual
currency under state or federal law.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to
virtual-currency custody services commenced on or after that date.
new text end
Sec. 7.
new text begin
[58.131] RESIDENTIAL MORTGAGE LOAN SERVICING STANDARDS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Authorized representative" means a person, including but not limited to an attorney,
employee, or agent of a government agency, not-for-profit housing counseling organization,
or legal services organization, designated by a borrower in a written authorization signed
by the borrower or in any other form of verifiable authorization to share information and
communicate with a servicer on behalf of the borrower.
new text end
new text begin
(c) "Clearly and conspicuously" means the statement, representation, or term being
disclosed is displayed in a size, color, and contrast and is presented in a manner that makes
the statement readily noticed and understood by an ordinary consumer.
new text end
new text begin
(d) "Government-sponsored enterprise" means the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation.
new text end
new text begin
(e) "Real Estate Settlement Procedures Act" or "RESPA" means the Real Estate
Settlement Procedures Act of 1974, United States Code, title 12, section 2601, et seq., and
regulations adopted pursuant to RESPA, also known as Regulation X, Code of Federal
Regulations, title 12, part 1024, as amended.
new text end
new text begin
(f) "Third-party provider" means any person or entity retained by or on behalf of the
servicer, including but not limited to foreclosure firms, law firms, foreclosure trustees, other
agents, independent contractors, subsidiaries, and affiliates, that provides insurance,
foreclosure, bankruptcy, mortgage servicing including loss mitigation, or other products or
services in connection with servicing a mortgage loan.
new text end
new text begin
(g) "Transferee servicer" means a servicer that has agreed to obtain the right to service
a mortgage loan pursuant to an agreement or understanding.
new text end
new text begin
(h) "Transferor servicer" means a servicer that has agreed to, or been informed that the
servicer must, transfer the right to service a mortgage loan to another servicer.
new text end
new text begin Subd. 2. new text end
new text begin General requirements. new text end
new text begin
(a) A violation of an applicable state law or
administrative rule, a federal law or regulation, or a state or federal program is a violation
of this section.
new text end
new text begin
(b) In addition to complying with this section, a servicer must comply with:
new text end
new text begin
(1) other applicable sections of this chapter;
new text end
new text begin
(2) other applicable state law, including but not limited to chapters 46A, 47, 580, 581,
and 582;
new text end
new text begin
(3) applicable sections of RESPA;
new text end
new text begin
(4) the federal Servicemembers Civil Relief Act, United States Code, title 50, section
501, et seq.; and
new text end
new text begin
(5) other applicable federal laws and implementing regulations, as amended, including
but not limited to:
new text end
new text begin
(i) the Gramm-Leach-Bliley Act, Public Law 106-102;
new text end
new text begin
(ii) the Truth-in-Lending Act, United States Code, title 15, section 1601, et seq.; and
new text end
new text begin
(iii) the Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x.
new text end
new text begin Subd. 3. new text end
new text begin Servicing and ownership transfers or sales. new text end
new text begin
(a) When acquiring servicing
rights from a transferor servicer, a transferee servicer must continue processing loan
modification requests and honoring trial and permanent modifications.
new text end
new text begin
(b) When transferring or selling loan servicing with pending modification requests or
trial or permanent modifications, a transferor servicer must:
new text end
new text begin
(1) inform the transferee servicer if a loan modification is pending; and
new text end
new text begin
(2) obligate the transferee servicer to (i) accept and continue processing loan modification
requests, and (ii) honor trial and permanent loan modification agreements.
new text end
new text begin Subd. 4. new text end
new text begin Payment processing and fees. new text end
new text begin
(a) A servicer must comply with section 47.59,
subdivision 9a, regarding prompt crediting of payments, if the borrower has provided
sufficient information to credit the account. A servicer must apply the payment as specified
in the loan documents.
new text end
new text begin
(b) A servicer may enter into a written contract with the borrower that allows the servicer
to hold certain types of money, or money sent by a certain method, for a period of time until
the money is available before crediting the money to the borrower's account.
new text end
new text begin
(c) A servicer must notify the borrower if a payment is received, not credited, and placed
in a suspense account. The servicer must send the notification to the borrower within ten
business days by United States mail to the borrower's last known address. The notification
must identify (1) the reason the payment was not credited or treated as credited to the
account, and (2) any actions the borrower must take to make the residential mortgage loan
current. If a servicer provides monthly or more frequent statements that include the
information under this paragraph, the servicer is not required to provide the information in
an additional notice. If this paragraph conflicts with the requirements of an applicable
bankruptcy court order, compliance with the bankruptcy court requirements constitutes
compliance with this paragraph or paragraph (d).
new text end
new text begin
(d) When a suspense account contains enough money to make a full payment, a servicer
must apply the payment to the mortgage on the date the full amount became available in
the suspense account.
new text end
new text begin
(e) A servicer must assess an incurred fee to a borrower's account within 60 days of the
date the fee was incurred. A servicer must clearly and conspicuously explain the fee in a
statement mailed to the borrower at the borrower's last known address no more than 30 days
after the date the fee is assessed. If a servicer provides monthly or more frequent statements
that include the information under this paragraph, the servicer is not required to provide the
information in an additional notice.
new text end
new text begin Subd. 5. new text end
new text begin Contracting with third-party providers. new text end
new text begin
A servicer must adopt written policies
and procedures governing the oversight of third-party providers, including but not limited
to foreclosure trustees, foreclosure firms, subservicers, agents, subsidiaries, and affiliates.
A servicer must maintain the policies and procedures as part of the servicer's books and
records and must provide the policies and procedures to the commissioner upon request.
new text end
new text begin Subd. 6. new text end
new text begin Maintenance of the escrow account. new text end
new text begin
(a) If a servicer collects escrow amounts
held for the borrower to pay insurance, taxes, or other charges with respect to the property,
the servicer must collect and make all payments from the escrow account. To the extent the
servicer has control, the servicer must ensure that no late penalties are assessed or other
negative consequences result for the borrower.
new text end
new text begin
(b) At least annually or upon the borrower's request, a servicer must inform the borrower
in writing regarding the amount of reserve required in an escrow account. The notice must
advise the borrower of any fees the borrower incurs (1) for not maintaining the reserve
amount, or (2) if the servicer advances escrow amounts on the borrower's behalf and
subsequently collects the escrow amounts from the borrower.
new text end
new text begin
(c) A servicer may enter into a written agreement with the borrower that specifies the
servicer is not required to make escrow payments unless money is available in the escrow
account. An agreement under this paragraph must include language that provides notice to
the borrower that the borrower is responsible to pay the escrow amounts if an amount
sufficient to pay the escrow amounts is not maintained in the escrow account.
new text end
new text begin
(d) A servicer must notify the borrower within ten business days of the date a change is
made to the escrow account that modifies the borrower's escrow payment amount. A change
requiring notification includes but is not limited to hazard insurance premiums, a reduction
in the required reserve amount for the account, or a change in the property's tax assessment.
A change resulting from a borrower's regularly scheduled payment is not a change requiring
notification.
new text end
new text begin Subd. 7. new text end
new text begin Borrower requests for information. new text end
new text begin
(a) A servicer must make a reasonable
attempt to comply with a borrower's request for information, including a request for
information about loss mitigation, regarding the residential mortgage loan account and must
respond to a dispute initiated by the borrower about the loan account. A reasonable attempt
under this subdivision includes but is not limited to:
new text end
new text begin
(1) maintaining written or electronic records of each written request for information
involving the borrower's account until the residential mortgage loan is paid in full, sold, or
otherwise satisfied; and
new text end
new text begin
(2) providing a written statement to the borrower within 30 business days of the date a
written request is received from the borrower or by following the response timelines provided
by a loss mitigation program. A borrower's request must include the borrower's name and
account number, if any, a statement that the account is or may be in error, and sufficient
detail regarding the information sought by the borrower to permit the servicer to comply.
new text end
new text begin
(b) At a minimum, a servicer must provide the following information in response to a
borrower request received under this subdivision:
new text end
new text begin
(1) whether the account is current or, if the account is not current, an explanation
regarding the default and the date the account entered default;
new text end
new text begin
(2) the current balance due on the residential mortgage loan, including the principal due;
the amount of money, if any, held in a suspense account; the amount of the escrow balance
known to the servicer, if any; and whether any escrow deficiencies or shortages are known
to the servicer;
new text end
new text begin
(3) the identity, address, and other relevant information about the current holder, owner,
or assignee of the residential mortgage loan; and
new text end
new text begin
(4) the telephone number and mailing address of an individual servicer representative
with the information and authority to answer questions and resolve disputes.
new text end
new text begin
(c) A servicer must promptly correct errors and refund fees assessed to the borrower
resulting from an error the servicer made.
new text end
new text begin
(d) If the content of a servicer's response meets the requirements under RESPA for a
response to a qualified written request, the servicer has complied with this subdivision. A
servicer deemed compliant with this subdivision under this paragraph must separately
comply with paragraph (c).
new text end
new text begin
(e) In addition to the statement described under paragraph (a), clause (2), a borrower
may request more detailed information from a servicer. A servicer that receives a request
under this paragraph must provide the information to the borrower within 30 business days
of the date a written request from the borrower is received. A borrower's request must
include the borrower's name and account number, if any, a statement that the account is or
may be in error, and sufficient detail to the servicer regarding information sought by the
borrower. If requested by the borrower, a statement provided under this paragraph must
also include:
new text end
new text begin
(1) a copy of the original note or, if the original note is unavailable, an affidavit of lost
note that includes all endorsements; and
new text end
new text begin
(2) a statement that (i) identifies and itemizes all fees and charges assessed under the
loan servicing transaction, (ii) provides a full payment history that identifies in a clear and
conspicuous manner all the debits, credits, applications, and disbursements of all payments
received from or for the benefit of the borrower, and (iii) identifies other activity on the
residential mortgage loan, including escrow account activity and suspense account activity,
if any.
new text end
new text begin
(f) For purposes of a borrower request made under paragraph (e) the account history
period must cover, at a minimum, the two-year period before the date the request for
information is received. If the servicer has not serviced the residential mortgage loan for
the entire two-year period, the servicer must provide the information back to the date on
which the servicer began servicing the residential mortgage loan and must identify the
previous servicer, if known. If a servicer claims delinquent or outstanding sums are owed
on the residential mortgage loan prior to the two-year period or the period during which the
servicer has serviced the residential mortgage loan, the servicer must provide an account
history beginning with the month that the servicer claims any outstanding sums are owed
on the residential mortgage loan up to the date the request for the information is received.
new text end
new text begin
(g) If the borrower requests a statement under paragraph (e), a servicer must provide the
statement free of charge. A borrower is entitled to only one free statement annually under
this paragraph. If a borrower requests more than one statement annually, a servicer may
charge $30 for the second and each subsequent statement.
new text end
new text begin Subd. 8. new text end
new text begin Borrower complaints and inquiries. new text end
new text begin
(a) A servicer must establish and maintain:
new text end
new text begin
(1) procedures and systems to respond to and resolve borrower complaints and inquiries
in a manner that complies with this section;
new text end
new text begin
(2) a customer service department staffed by trained personnel to whom a borrower may
direct complaints and inquiries; and
new text end
new text begin
(3) a toll-free telephone number or collect calling service that enables a borrower to
speak, during regular business hours, with a live person trained to answer inquiries and
instruct borrowers how to file written complaints.
new text end
new text begin
(b) Each welcome packet, periodic statement, including as applicable either the monthly
mortgage statement or annual coupon book that is provided to a borrower, and website
maintained by a servicer must clearly and conspicuously state:
new text end
new text begin
(1) an address to which borrowers may direct complaints and inquiries;
new text end
new text begin
(2) the toll-free telephone number or collect calling services provided by the servicer;
new text end
new text begin
(3) whether the servicer is licensed with the commissioner; and
new text end
new text begin
(4) that a borrower may file a complaint and obtain information about the servicer by
contacting the Department of Commerce. The information provided under this clause must
include the department's current telephone contact information and website.
new text end
new text begin
(c) A servicer must establish and maintain a process that enables borrowers to escalate
complaints or pending loss mitigation matters for a supervisory-level review.
new text end
new text begin Subd. 9. new text end
new text begin Servicing prohibitions; fair dealing duty. new text end
new text begin
(a) In addition to the prohibitions
and standards of conduct under sections 58.12, subdivision 1, paragraph (b), and 58.13,
subdivision 1, a servicer is prohibited from:
new text end
new text begin
(1) engaging in unfair, deceptive, or abusive business practices, or misrepresenting or
omitting any material information, in connection with servicing a mortgage loan, including
but not limited to misrepresenting the amount, nature, or terms of a fee, payment due, or
payment claimed due on the loan, the servicing agreement's terms and conditions, or the
borrower's obligations under the loan;
new text end
new text begin
(2) requiring money to be remitted by a method that is more costly to the borrower than
a bank, certified check, or attorney's check from an attorney's account; or
new text end
new text begin
(3) refusing to communicate with the borrower's authorized representative if the
authorized representative provides the servicer with a written authorization, including by
electronic transmission, signed by the borrower that affirms the authorized representative
may act on behalf of the borrower. A servicer may adopt procedures, excluding collecting
the representative's Social Security number, that are reasonably related to verifying that the
representative is in fact authorized to act on behalf of the borrower.
new text end
new text begin
(b) A servicer must act in good faith and deal fairly in the servicer's dealings with a
borrower in connection with servicing a borrower's mortgage loan. For purposes of this
paragraph, acting in good faith and dealing fairly includes but is not limited to the duty to:
new text end
new text begin
(1) safeguard and account for any payment made by the borrower or any money belonging
to the borrower;
new text end
new text begin
(2) follow reasonable and lawful instructions from the borrower that are consistent with
the underlying note and mortgage;
new text end
new text begin
(3) act with reasonable skill, care, and diligence;
new text end
new text begin
(4) consider alternatives to foreclosure when a borrower (i) demonstrates that the borrower
is in imminent risk of delinquency on the mortgage loan as a result of a financial hardship,
or (ii) has experienced a financial hardship and is unable to maintain the payment at the
current payment amount required under the mortgage loan or make delinquent payments;
and
new text end
new text begin
(5) structure loan modifications to result in payments that are reasonably affordable and
sustainable for the borrower at the time the modification is made.
new text end
new text begin Subd. 10. new text end
new text begin Notices; mailings; evidence of receipt. new text end
new text begin
(a) A notification, mailing, or other
correspondence from a mortgage servicer or third-party provider to a borrower must be
provided via first-class mail or email if the borrower has provided an email address for
notice or communication purposes.
new text end
new text begin
(b) A servicer must provide a mailing address, facsimile number, email address, and a
method to facilitate file transfers via the Internet to produce documents requested from the
borrower. An option to transfer files via the Internet must allow both the borrower and
servicer to view the documents sent and confirm the date the documents were sent for 60
months after the date the documents were produced to the servicer.
new text end
new text begin
(c) A servicer must provide a detailed description of all items received and the items'
expiration dates from a borrower within ten business days of the date an item was received
via any medium described under this subdivision.
new text end
new text begin
(d) A servicer is prohibited from rejecting documentation from a borrower or potential
borrower as incomplete without providing the borrower with details regarding which specific
portion of the documentation is incomplete.
new text end
Sec. 8.
Minnesota Statutes 2024, section 58.14, subdivision 3, is amended to read:
Subd. 3.
Documentation and resolution of complaints.
A licensee or exempt person
must investigate and attempt to resolve complaints made regarding acts or practices subject
to the provisions of this chapter.new text begin A servicer must comply with section 58.131, subdivisions
6 and 7.new text end If a complaint is received in writing, the licensee or exempt person must maintain
a file containing all materials relating to the complaint and subsequent investigation for a
period of 60 months.
Sec. 9.
Minnesota Statutes 2024, section 58.14, subdivision 4, is amended to read:
Subd. 4.
Trust account records for mortgage originators.
A residential mortgage
originatornew text begin or servicernew text end shall keep and maintain for 60 months a record of all trust funds,
sufficient to identify the transaction, date and source of receipt, and date and identification
of disbursement.
Sec. 10.
Minnesota Statutes 2024, section 58.14, subdivision 5, is amended to read:
Subd. 5.
Record retention.
A licensee or exempt person must keep and maintain for 60
months the business records, includingnew text begin email communications, telephone recordings,
incomplete documentation, andnew text end advertisements, regarding residential mortgage loans applied
for, originated, or serviced in the course of its business.
Sec. 11.
Minnesota Statutes 2024, section 58.14, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin Telephone recordings. new text end
new text begin
A person acting as a residential mortgage loan servicer
that services at least 500 residential mortgage loans secured by property in Minnesota must:
new text end
new text begin
(1) record a telephone conversation with a borrower and a borrower's representatives;
and
new text end
new text begin
(2) maintain the recording of the conversation for 60 months after the date the recording
is made, as provided under subdivision 5.
new text end
Sec. 12.
Minnesota Statutes 2024, section 58.18, subdivision 4, is amended to read:
Subd. 4.
Exemption.
This section does not apply to a residential mortgage loan originated
by a federal or state chartered bank, savings bank, or credit unionnew text begin , unless the residential
mortgage loan originated by a federal or state chartered bank, savings bank, or credit union
is serviced by a residential mortgage servicer, as defined under section 58.02, subdivision
20new text end .
Sec. 13.
Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to
read:
new text begin Subd. 4a. new text end
new text begin Income-driven repayment program. new text end
new text begin
"Income-driven repayment program"
means the Income-Contingent Repayment Plan, the Income-Based Repayment Plan, the
Income-Sensitive Repayment Plan, the Pay As You Earn Plan, the Revised Pay As You
Earn Plan, and any other state, federal, or private student loan repayment plan that is
calculated based on a borrower's income and for which a borrower's income may include
the borrower's household income for purposes of evaluating eligibility under section 58B.06,
subdivision 5.
new text end
Sec. 14.
Minnesota Statutes 2025 Supplement, 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 includedeleted text begin , to the extent that state regulation is
preempted by federal lawdeleted text end :
(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 10; 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. 15.
Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to
read:
new text begin Subd. 10. new text end
new text begin Written communication. new text end
new text begin
"Written communication" means a written
correspondence that is made by a borrower and is transmitted by mail, facsimile, or
electronically through an email address or Internet website that the student loan servicer
designates to receive communications from a borrower and enables the student loan servicer
to identify the borrower's name and account. Written communication does not include a
notice on a payment medium supplied by a student loan servicer.
new text end
Sec. 16.
Minnesota Statutes 2024, section 58B.03, subdivision 10, is amended to read:
Subd. 10.
Annual report.
(a) deleted text begin Beginningdeleted text end new text begin On or beforenew text end March 15deleted text begin , 2025deleted text end new text begin each yearnew text end , a
student loan lender that secures, makes, or extends student loans in Minnesota must new text begin submit
a new text end report to the commissioner on the form the commissioner providesnew text begin . The report must include
for the previous calendar yearnew text end :
(1) a list of all schools attended by borrowers who received a student loan from the
student loan lender and resided within Minnesota at the time of the transaction and whose
debt is still outstanding, including student loans used to refinance an existing debt;
(2) the total outstanding dollar amount owed by borrowers residing in Minnesota who
received student loans from the student loan lender;
(3) the total number of student loans owed by borrowers residing in Minnesota who
received student loans from the student loan lender;
(4) the total outstanding dollar amount and number of student loans owed by borrowers
who reside in Minnesota, associated with each school identified under clause (1);
(5) the total dollar amount of student loans provided by the student loan lender to
borrowers who resided in Minnesota in the prior calendar year;
(6) the total outstanding dollar amount and number of student loans owed by borrowers
who resided in Minnesota, associated with each school identified under clause (1), that were
provided in the prior calendar year;
(7) the rate of default for borrowers residing in Minnesota who obtained student loans
from the student loan lender, if applicable;
(8) the rate of default for borrowers residing in Minnesota who obtained student loans
from the student loan lender associated with each school identified under clause (1), if
applicable;
(9) the range of initial interest rates for student loans provided by the student loan lender
to borrowers who resided in Minnesota in the prior calendar year;
(10) the total number of borrowers who received student loans identified under clause
(9), and the percentage of borrowers who received each rate identified under clause (9);
(11) the total dollar amount and number of student loans provided in the prior calendar
year by the student loan lender to borrowers who resided in Minnesota at the time of the
transaction and had a cosigner for the student loans;
(12) the total dollar amount and number of student loans provided by the student loan
lender to borrowers residing in Minnesota used to refinance a prior student loan or federal
student loan in the prior calendar year;
(13) the total dollar amount and number of student loans for which the student loan
lender had sued to collect from a borrower residing in Minnesota in the prior calendar year;
(14) a copy of any model promissory note, agreement, contract, or other instrument used
by the student loan lender in the previous year to substantiate that a borrower owes a new
debt to the student loan lender; and
(15) any other information considered necessary by the commissioner to assess the total
size and status of the student loan market and well-being of borrowers in Minnesota.
(b) In addition to annual reports, the commissioner may require additional regular or
special reports as the commissioner deems necessary to properly supervise student loan
lenders under this chapter.
(c) The commissioner of commerce must share data collected under this subdivision
with the commissioner of higher education.
Sec. 17.
Minnesota Statutes 2024, section 58B.03, subdivision 11, is amended to read:
Subd. 11.
Annual report from student loan servicers.
(a) deleted text begin Beginningdeleted text end new text begin On or beforenew text end
March 15deleted text begin , 2025deleted text end new text begin each yearnew text end , a student loan servicer that services student loans in Minnesota
mustnew text begin submit anew text end report to the commissioner on the form the commissioner provides. The
report must includenew text begin for the previous calendar yearnew text end :
(1) a list of any outstanding student loans owed by borrowers who reside in Minnesota
that are serviced by the student loan servicer;
(2) the total outstanding dollar amount and number of student loans that are serviced by
the student loan servicer and owed by borrowers who reside in Minnesota;
(3) the total dollar amount and number of student loans owed by borrowers who resided
in Minnesota that were serviced by the student loan servicer in the prior calendar year;
(4) the rate of default for student loans owed by borrowers who reside in Minnesota that
are serviced by the student loan servicer, if applicable;
(5) the range of interest rates for student loans serviced by the student loan servicers to
borrowers who resided in Minnesota in the prior calendar year;
(6) the total outstanding dollar amount and number of student loans that were serviced
by the student loan servicer and owed by borrowers residing in Minnesota to refinance a
prior student loan or federal student loan; and
(7) any other information considered necessary by the commissioner to assess the total
size and status of the student loan market and well-being of borrowers in Minnesota.
(b) In addition to annual reports, the commissioner may require additional regular or
special reports as the commissioner deems necessary to properly supervise student loan
servicers under this chapter.
(c) The commissioner of commerce must share data collected under this subdivision
with the commissioner of higher education.
Sec. 18.
Minnesota Statutes 2024, section 58B.06, subdivision 4, is amended to read:
Subd. 4.
Transfer of student loan.
(a) If a borrower's student loan servicer changes
pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer
mustdeleted text begin :deleted text end new text begin protect the borrower from negative consequences resulting from the sale, assignment,
transfer, system conversion, or payment the borrower makes to the original loan servicer
consistent with the original student loan servicer's policy. For purposes of this paragraph,
"negative consequences" includes but is not limited to: (1) negative credit reporting; (2)
imposing late fees that are not required by the promissory note; or (3) eligibility loss or
denial for a benefit or protection established under federal law or included in the loan
contract.
new text end
deleted text begin
(1) require the new student loan servicer to honor all benefits that were made available,
or which may have become available, to a borrower from the original student loan servicer
or are authorized under the student loan contract, including any benefits for which the student
loan borrower has not yet qualified unless that benefit is no longer available under the federal
or state laws and regulations; and
deleted text end
deleted text begin
(2) transfer to the new student loan servicer all information regarding the borrower, the
account of the borrower, and the borrower's student loan, including but not limited to the
repayment status of the student loan and the benefits described in clause (1).
deleted text end
deleted text begin
(b) The student loan servicer must complete the transfer under paragraph (a), clause (2),
less than 45 days from the date of the sale, assignment, or transfer of the servicing.
deleted text end
deleted text begin
(c) A sale, assignment, or transfer of the servicing must be completed no less than seven
days from the date the next payment is due on the student loan.
deleted text end
deleted text begin
(d) A new student loan servicer must adopt policies and procedures to verify that the
original student loan servicer has met the requirements of paragraph (a).
deleted text end
new text begin
(b) If a borrower's student loan servicer changes pursuant to the sale, assignment, or
transfer of the servicing, the original and new student loan servicer must provide a written
notice to the borrower subject to the transfer. The notice must be provided no less than 15
calendar days before the transfer's effective date and must include:
new text end
new text begin
(1) the sale, assignment, or transfer's effective date;
new text end
new text begin
(2) the name, address, website, and toll-free telephone number for the original student
loan servicer's designated point of contact for the borrower to contact in order to obtain
answers to servicing inquiries;
new text end
new text begin
(3) the name, address, website, and toll-free telephone number for the new student loan
servicer's designated point of contact for the borrower to contact in order to obtain answers
to servicing inquiries;
new text end
new text begin
(4) the date the original student loan servicer stops accepting payments on the borrower's
student loan;
new text end
new text begin
(5) the date the new student loan servicer begins accepting payments on the borrower's
student loan;
new text end
new text begin
(6) information that indicates whether the borrower's authorization for recurring electronic
funds transfers, if applicable, is transferred to the new servicer. If a recurring electronic
funds transfer is not transferred, the transferee must provide information that explains how
the borrower may establish a new recurring electronic funds transfer with the new servicer;
and
new text end
new text begin
(7) a statement that indicates the current loan balance, including the current unpaid
amount of principal, interest, and fees.
new text end
new text begin
(c) If a borrower's student loan servicer changes pursuant to the sale, assignment, or
transfer of the servicing, the original student loan servicer must ensure all necessary
information regarding a borrower, a borrower's account, and a borrower's student loan
accompanies a loan when the loan is transferred to a new student loan servicer. The transfer
of necessary information must occur within 45 calendar days of the sale, assignment, or
transfer's effective date. For purposes of this subdivision, "necessary information" includes
but is not limited to:
new text end
new text begin
(1) a schedule of all transactions credited or debited to the student loan account;
new text end
new text begin
(2) a copy of the promissory note for the student loan;
new text end
new text begin
(3) notes created by the student loan servicer's personnel that reflect communications
with the borrower regarding the student loan account;
new text end
new text begin
(4) a report of the data fields relating to the borrower's student loan account created by
the student loan servicer's electronic systems in connection with servicing practices;
new text end
new text begin
(5) copies or electronic records of information or documents the borrower provided to
the student loan servicer;
new text end
new text begin
(6) if applicable, usable data fields that contain information necessary to assess the
borrower's eligibility for forgiveness, including public service loan forgiveness; and
new text end
new text begin
(7) information necessary to compile a payment history.
new text end
new text begin
(d) A new student loan servicer must adopt and implement policies and procedures to
verify that the original student loan servicer meets the requirements of paragraph (c).
new text end
Sec. 19.
Minnesota Statutes 2024, section 58B.06, subdivision 6, is amended to read:
Subd. 6.
Records.
A student loan servicer must maintain deleted text begin adequatedeleted text end new text begin complete and accuratenew text end
recordsnew text begin , includingnew text end ofnew text begin all written communication and telephone recordings, fornew text end each student
loannew text begin . The records must be maintainednew text end for deleted text begin not less thandeleted text end new text begin at leastnew text end two years following the final
payment on the student loan or the sale, assignment, or transfer of the servicing.
Sec. 20.
new text begin
[59E.01] SHORT TITLE.
new text end
new text begin
This chapter shall be known and cited as the "Rental Home Marketplace Guarantees
Act."
new text end
Sec. 21.
new text begin
[59E.02] DEFINITIONS.
new text end
new text begin
(a) For purposes of this chapter, the following terms have the meanings given.
new text end
new text begin
(b) "Commissioner" means the commissioner of commerce.
new text end
new text begin
(c) "Person" means an individual or an entity, excluding a state or local governmental
entity.
new text end
new text begin
(d) "Platform contract holder" means a platform user who is the beneficiary or holder
of a rental home marketplace guarantee.
new text end
new text begin
(e) "Provider" means:
new text end
new text begin
(1) a rental home marketplace; or
new text end
new text begin
(2) a rental home marketplace affiliate or representative who issues or offers as well as
administers, either directly or through a third party, a rental home marketplace guarantee.
new text end
new text begin
(f) "Reimbursement insurance policy" means an insurance policy issued to a provider,
pursuant to which the insurer agrees, for the benefit of a platform contract holder, to discharge
the provider's obligations and liabilities under the terms of the rental home marketplace
guarantee in the event of the provider's default or nonperformance under the rental home
marketplace guarantee.
new text end
new text begin
(g) "Rental home marketplace" means a person that:
new text end
new text begin
(1) provides an online application, software, website, system, or other medium that:
new text end
new text begin
(i) is used to advertise or offer available property to the public; and
new text end
new text begin
(ii) connects and enables platform users' property;
new text end
new text begin
(2) provides, directly or indirectly, or maintains an online platform by:
new text end
new text begin
(i) transmitting or otherwise communicating the offer or acceptance of a transaction
between two platform users; or
new text end
new text begin
(ii) owning or operating the electronic infrastructure or technology that connects two or
more platform users; and
new text end
new text begin
(3) if the person offers rental home marketplace guarantees, offers rental home
marketplace guarantees only in a manner that is ancillary to the conduct of the person's
primary legitimate business or activity.
new text end
new text begin
(h) "Rental home marketplace guarantee" means a contract or agreement issued in
connection with a rental home marketplace, whether or not the contract or agreement includes
a separate consideration, to reimburse a user sharing property for damages the renter is
responsible for under the rental home marketplace's terms of service, with or without
additional provision for incidental payment of indemnity.
new text end
Sec. 22.
new text begin
[59E.03] REQUIREMENTS FOR DOING BUSINESS.
new text end
new text begin
(a) A provider is prohibited from issuing or offering a rental home marketplace guarantee
unless the provider has made the rental home marketplace guarantee terms available on the
provider's website and complied with this chapter.
new text end
new text begin
(b) A provider that offers rental home marketplace guarantees must file a registration
with the commissioner on a form prescribed by the commissioner.
new text end
new text begin
(c) To ensure the faithful performance of a provider's obligations to the provider's
platform contract holders, each provider who is obligated to a platform contract holder must
insure all rental home marketplace guarantees under a reimbursement insurance policy
issued (1) by an insurer authorized to transact insurance in Minnesota, or (2) pursuant to
sections 60A.195 to 60A.2095.
new text end
new text begin
(d) Each person handling rental home marketplace guarantee losses on behalf of a
provider must be trained in property damage and loss assessment and interpretation of the
rental home marketplace guarantee terms before handling losses. The training must be
adequate for each person handling rental home marketplace guarantee losses to provide
knowledgeable, fair, and objective service. Providers must maintain records demonstrating
completion of the training under this paragraph by each person handling rental home
marketplace guarantee losses.
new text end
Sec. 23.
new text begin
[59E.04] RENTAL HOME MARKETPLACE GUARANTEES ARE NOT
INSURANCE.
new text end
new text begin
A rental home marketplace guarantee does not constitute insurance and is not required
to comply with other Minnesota insurance laws if the provider complies with this chapter.
new text end
Sec. 24.
new text begin
[59E.05] REIMBURSEMENT INSURANCE POLICY.
new text end
new text begin
(a) A reimbursement insurance policy insuring rental home marketplace guarantees must
clearly state that upon the provider's default or nonperformance under the rental home
marketplace guarantee, the insurer that issued the policy must pay on behalf of the provider
any amount the provider is obligated to pay according to the rental home marketplace
guarantee.
new text end
new text begin
(b) A reimbursement insurance policy is subject to the laws and regulations governing
termination and nonrenewal of insurance policies in Minnesota. The termination of a
reimbursement insurance policy does not reduce the issuer's responsibility for rental home
marketplace guarantees issued by providers before the termination's effective date.
new text end
new text begin
(c) A provider is the agent of the insurer that issued the reimbursement insurance policy.
The insurer retains the right to seek indemnification or subrogation from the provider if the
insurer pays or is obligated to pay the platform contract holder the amount the provider was
obligated to pay under the rental home marketplace guarantee. This chapter does not prevent
or limit the insurer's right in this regard.
new text end
Sec. 25.
new text begin
[59E.06] CONSUMER PROTECTION AND DISCLOSURES.
new text end
new text begin
(a) A rental home marketplace guarantee must include a statement in substantially the
following form: "This rental home marketplace guarantee is not an insurance contract."
new text end
new text begin
(b) A rental home marketplace guarantee must contain a statement in substantially the
following form: "The provider's obligations are backed by a reimbursement insurance policy.
If the provider is unable or fails to perform on the provider's contractual obligation under
a rental home marketplace guarantee within 90 days after the date proof of loss is filed, a
platform user is entitled to make a claim directly against the insurance company subject to
the terms of the policy."
new text end
new text begin
(c) A rental home marketplace guarantee must be written in clear, understandable
language and must specify the terms, limitations, exceptions, conditions, or exclusions,
including conditions governing transferability or termination.
new text end
new text begin
(d) A provider is prohibited from making, permitting, or causing to be made a false or
misleading statement, or deliberately omitting a material statement whose omission is
considered misleading, in connection with offering or advertising a rental home marketplace
guarantee.
new text end
Sec. 26.
new text begin
[59E.07] ENFORCEMENT.
new text end
new text begin
The commissioner must ensure rental home marketplace guarantees comply with this
chapter pursuant to the commissioner's powers under chapter 45. The commissioner must
ensure reimbursement insurance policies insuring rental home marketplace guarantees
comply with applicable law pursuant to the commissioner's powers under chapters 45 and
60A.
new text end
Sec. 27.
Minnesota Statutes 2024, section 60A.07, is amended by adding a subdivision to
read:
new text begin Subd. 12. new text end
new text begin Social Security number and individual taxpayer identification number. new text end
new text begin
(a)
If an insurance company requires a new customer to provide a Social Security number on
an application for insurance coverage, the insurance company must accept an individual
taxpayer identification number in lieu of a Social Security number.
new text end
new text begin
(b) This subdivision does not prohibit an insurance company from using the insurance
company's applicable underwriting criteria in determining the eligibility, classification, or
rating of any applicant for insurance.
new text end
new text begin
(c) This subdivision does not require an insurer to alter the insurer's existing applications
for insurance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027, and applies to insurance
coverage offered, issued, or renewed on or after that date.
new text end
Sec. 28.
Minnesota Statutes 2024, section 60A.085, is amended to read:
60A.085 CANCELLATION OF GROUP COVERAGE; NOTIFICATION TO
COVERED PERSONS.
(a) No cancellation of any group life, group accidental death and dismemberment, group
disability income, or group medical expense policy, plan, or contract regulated under chapter
62A or 62C is effective unless the insurer has made a good faith effort to notify all covered
persons of the cancellation at least 30 days before the effective cancellation date. For purposes
of this section, an insurer has made a good faith effort to notify all covered persons if the
insurer has notified all the persons included on the list required by paragraph (b) at the home
address given and only if the list has been updated within the last 12 months.
(b) At the time of the application for coverage subject to paragraph (a), the insurer shall
obtain an accurate list of the names and home addresses of all persons to be covered.
(c) Paragraph (a) does not apply if the group policy, plan, or contract is replaced, or if
the insurer has reasonable evidence to indicate that it will be replaced, by a substantially
similar policy, plan, or contract.
(d) In no event shall this section extend coverage under a group policy, plan, or contract
more than 120 days beyond the date coverage would otherwise cancel based on the terms
of the group policy, plan, or contract.
(e) If coverage under the group policy, plan, or contract is extended by this section, then
the time period during which affected members may exercise any conversion privilege
provided for in the group policy, plan, or contract is extended for the same length of time,
plus 30 days.
new text begin
(f) In the case of a group life, group accidental death and dismemberment, or group
disability income policy, the insurer and group policyholder may agree that the group
policyholder assumes responsibility for notifying all covered persons in the event of a
cancellation under paragraphs (a) and (c). As part of the agreement, the group policyholder
must certify to the insurer that the notification required under this section has taken place.
If the employer assumes responsibility for the notification, paragraphs (b), (d), and (e) do
not apply.
new text end
Sec. 29.
Minnesota Statutes 2024, section 60K.383, is amended to read:
60K.383 TRAVEL INSURANCE.
Subdivision 1.
Definitions.
(a) As used in this section, the terms in paragraphs (b) to
deleted text begin (d)deleted text end new text begin (e)new text end have the meanings given.
new text begin
(b) "Limited lines travel insurance producer" means a licensed managing general agent
or third-party administrator; licensed insurance producer, including a limited lines producer;
or travel administrator, as defined in section 65C.02, subdivision 13.
new text end
new text begin
(c) "Offer and disseminate" means providing general information, including a description
of coverage and price, as well as processing an application and collecting premiums.
new text end
deleted text begin (b)deleted text end new text begin (d)new text end "Travel insurance" means insurance coverage for personal risks incident to planned
travel, includingdeleted text begin ,deleted text end but not limited to:
(1) interruption or cancellation of trip or event;
(2) loss of baggage or personal effects;
(3) damages to accommodations or rental vehicles; deleted text begin or
deleted text end
(4) sickness, accident, disability, or death occurring during traveldeleted text begin .deleted text end new text begin ;
new text end
new text begin
(5) emergency evacuation;
new text end
new text begin
(6) repatriation of remains; or
new text end
new text begin
(7) a contractual obligation to indemnify or pay a specified amount of money to the
traveler upon determinable contingencies related to travel, as approved by the commissioner.
new text end
Travel insurance does not include major medical plans, which provide comprehensive
medical protection for travelers with trips lasting six months or longer, including those
working overseas as an expatriate or military personnel being deployednew text begin , or a product that
requires a specific insurance producer licensenew text end .
deleted text begin
(c) "Travel insurance producer" means an insurer designee, such as a managing general
underwriter, managing general agent, or licensed limited lines producer of travel insurance.
deleted text end
deleted text begin (d)deleted text end new text begin (e)new text end "Travel retailer" means a business entity that deleted text begin offers and disseminatesdeleted text end new text begin :
new text end
new text begin
(1) makes, arranges, or offers planned travel; and
new text end
new text begin (2) may offer and disseminatenew text end travel insurance new text begin as a service to the travel retailer's
customers new text end on behalf of and under the direction of a new text begin limited lines new text end travel insurance producer.
Subd. 2.
deleted text begin Travel retailer licensedeleted text end new text begin Licensing and registrationnew text end .
new text begin
(a) The commissioner
may issue a limited lines travel insurance producer license to an individual or business entity
that has filed with the commissioner a limited lines travel insurance producer license
application in a form and manner prescribed by the commissioner. A limited lines travel
insurance producer must be licensed to sell, solicit, or negotiate travel insurance through a
licensed insurer. A person is prohibited from acting as a limited lines travel insurance
producer or travel insurance retailer unless the person is licensed or registered.
new text end
new text begin (b) new text end A travel retailer may offer and disseminate travel insurance on behalf of and under
a new text begin limited lines new text end travel insurance producer business entity license only if deleted text begin the travel insurance
producer holds a business entity license, anddeleted text end :
deleted text begin
(1) the licensed business entity is clearly identified as the licensed producer on marketing
materials and fulfillment packages distributed by travel retailers to customers; identification
shall include the entity's name and contact information;
deleted text end
new text begin
(1) the limited lines travel insurance producer or travel retailer provides to travel insurance
purchasers:
new text end
new text begin
(i) a description of the material terms or the actual material terms of the insurance
coverage;
new text end
new text begin
(ii) a description of the process to file a claim;
new text end
new text begin
(iii) a description of the process to review or cancel the travel insurance policy; and
new text end
new text begin
(iv) the identity and contact information of the insurer and limited lines travel insurance
producer;
new text end
(2) the deleted text begin licensed business entitydeleted text end new text begin limited lines travel insurance producernew text end keeps a registernew text begin ,
on a form prescribed by the commissioner,new text end of each travel retailer that offers travel insurance
on the licensed business entity's behalf. The register new text begin must be maintained and updated by
the limited lines travel insurance producer and new text end must include new text begin (i) new text end the namenew text begin , address,new text end and
contact information of the travel retailer and an officer or person who directs or controls
the travel retailer's operations, and new text begin (ii) new text end the travel retailer's federal deleted text begin Employerdeleted text end new text begin taxnew text end identification
number. The deleted text begin licensed business entity shalldeleted text end new text begin limited lines travel insurance producer mustnew text end also
certify that the travel retailer registered complies with United States Code, title 18, section
1033. The deleted text begin licensed business entity shalldeleted text end new text begin limited lines travel insurance producer mustnew text end submit
the register within 30 days upon request by the commissionernew text begin . Section 60K.43, subdivisions
1, 3, and 4, apply to limited lines travel insurance producers and travel retailersnew text end ;
(3) the deleted text begin licensed business entitydeleted text end new text begin limited lines travel insurance producernew text end has designated
one of its employees deleted text begin asdeleted text end new text begin who isnew text end a licensed individual producerdeleted text begin ,deleted text end new text begin asnew text end a "designated responsible
producer" or "DRPdeleted text begin ,deleted text end " responsible for the business entity's compliance with Minnesota
insurance laws and rules;
(4) the DRP, president, secretary, treasurer, and any other officer or person who directs
or controls the deleted text begin licensed business entity'sdeleted text end new text begin limited lines travel insurance producer'snew text end insurance
operations deleted text begin complydeleted text end new text begin compliesnew text end with the fingerprinting requirements applicable to insurance
producers in the resident state of the deleted text begin business entitydeleted text end new text begin limited lines travel insurance producernew text end ;
(5) the deleted text begin licensed business entitydeleted text end new text begin limited lines travel insurance producernew text end has paid all
applicable insurance producer licensing fees deleted text begin asdeleted text end set forth in Minnesota deleted text begin statedeleted text end law; and
(6) the deleted text begin licensed business entitydeleted text end new text begin limited lines travel insurance producernew text end requires each
employee new text begin and authorized representative new text end of the travel retailer whose duties include offering
and disseminating travel insurance to receive a program of instruction or training, which
may be subject to review by the commissioner.new text begin The training materials must, at a minimum,
contain adequate instruction regarding the types of insurance offered, ethical sales practices,
and required disclosures provided to prospective customers.
new text end
new text begin
(c) A travel retailer offering or disseminating travel insurance must make available to
prospective purchasers a brochure or other written materials that have been approved by
the travel insurer. The materials must include information that, at a minimum:
new text end
new text begin
(1) provides the identity and contact information of the insurer and the limited lines
travel insurance producer;
new text end
new text begin
(2) explains that a person is not required to purchase travel insurance in order to purchase
any other product or service from the travel retailer; and
new text end
new text begin
(3) explains that an unlicensed travel retailer is permitted to provide only general
information about the insurance offered by the travel retailer, including a description of the
coverage and price, but is not qualified or authorized to (i) answer technical questions about
the terms and conditions of the insurance offered by the travel retailer, or (ii) evaluate the
adequacy of the customer's existing insurance coverage.
new text end
new text begin
(d) A travel retailer employee or authorized representative who is not licensed as an
insurance producer is prohibited from:
new text end
new text begin
(1) evaluating or interpreting the technical terms, benefits, and conditions contained in
the offered travel insurance coverage;
new text end
new text begin
(2) evaluating or providing advice concerning a prospective purchaser's existing insurance
coverage; or
new text end
new text begin
(3) representing that the travel retailer employee or authorized representative is a licensed
insurer, licensed producer, or insurance expert.
new text end
Subd. 3.
Offer and dissemination of travel insurance; compensation.
new text begin Notwithstanding
any other law, new text end a travel retailer whose new text begin insurance-related new text end activities, and those of its employeesnew text begin
and authorized representativesnew text end , are limited to offering and disseminating travel insurance
on behalf of and under the direction of a deleted text begin licensed business entitydeleted text end new text begin limited lines travel insurance
producernew text end meeting the conditions stated in this sectiondeleted text begin ,deleted text end is authorized to do so and receive
related compensationdeleted text begin ,deleted text end upon registration by the deleted text begin licensed business entity. For purposes of this
section, "offering and disseminating" means providing general information, including a
description of the coverage and price, as well as processing the application, collecting
premiums, and performing other nonlicensable activities permitted by the statedeleted text end new text begin limited lines
travel insurance producer as provided under subdivision 2, paragraph (b), clause (2)new text end .
Subd. 4.
Insurer designee.
As the deleted text begin insurerdeleted text end new text begin insurer'snew text end designee, the new text begin limited lines new text end travel
insurance producer is responsible for the acts of the travel retailernew text begin and must use reasonable
means to ensure compliance by the travel retailer with this section and chapter 65Cnew text end .
new text begin Subd. 5. new text end
new text begin Producers of major lines of insurance. new text end
new text begin
A person licensed in a major line of
authority as an insurance producer is authorized to sell, solicit, and negotiate travel insurance.
A property and casualty insurance producer is not required to be appointed by an insurer in
order to sell, solicit, or negotiate travel insurance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 30.
Minnesota Statutes 2024, section 65A.27, subdivision 1, is amended to read:
Subdivision 1.
Scope.
For purposes of sections 65A.27 to deleted text begin 65A.302deleted text end new text begin 65A.304new text end , the following
terms have the meanings given.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 31.
new text begin
[65A.304] DAMAGE BY PEACE OFFICERS; MITIGATION.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Industrial hygienist" means an individual who has:
new text end
new text begin
(1) a certified industrial hygienist credential from the Board for Global EHS
Credentialing; or
new text end
new text begin
(2) an equivalent certification from a nationally or internationally recognized accrediting
body demonstrating competency in the anticipation, recognition, evaluation, and control of
occupational and environmental health hazards.
new text end
new text begin
(c) "Just compensation" has the meaning given in section 626.74, subdivision 1, clause
(1).
new text end
new text begin
(d) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph
(c).
new text end
new text begin Subd. 2. new text end
new text begin Exclusion prohibited. new text end
new text begin
(a) A policy of homeowner's insurance must not exclude
coverage for property damage if the homeowner is an innocent third party entitled to just
compensation under section 626.74 and the damage results from a peace officer's use of
chemical irritants, smoke screens, or diversionary devices.
new text end
new text begin
(b) This section does not affect a local government's duty to pay just compensation under
section 626.74.
new text end
new text begin
(c) Paragraph (a) does not prohibit a civil authority exclusion or other policy provision
as long as the coverage for just compensation is not excluded.
new text end
new text begin Subd. 3. new text end
new text begin Mitigation. new text end
new text begin
(a) Under a policy of homeowner's insurance, an insurer must allow
a homeowner to choose a mitigation contractor and, if necessary, an industrial hygienist to
assess and remediate damage due to a peace officer's use of chemical irritants, smoke screens,
or diversionary devices, when the homeowner is owed just compensation under section
626.74.
new text end
new text begin
(b) The work performed by a mitigation contractor or industrial hygienist under this
subdivision must follow recognized industry standards and, if applicable, chemical
manufacturer guidelines.
new text end
new text begin Subd. 4. new text end
new text begin Insurer subrogation and reimbursement. new text end
new text begin
(a) If an insurer pays benefits to
or on behalf of a homeowner for damage described in this section, the insurer is subrogated
as a matter of law to the homeowner's right to recover just compensation from the responsible
local government unit.
new text end
new text begin
(b) Payment made by an insurer under a policy of homeowner's insurance for damage
described in this section, if made in good faith and after reasonable investigation, is presumed
reasonable and necessary and must be reimbursed by the responsible local government unit.
Reimbursement may be denied only upon proof that the payment was obtained by fraud or
that the insurer acted in bad faith. If reimbursement is not made as required by this
subdivision, the insurer may bring an action to recover the amount paid and is entitled to
reasonable attorney fees, costs, and disbursements, including interest under section 60A.0811,
subdivision 2, paragraph (a).
new text end
new text begin
(c) If an insurer is reimbursed by a local government unit pursuant to this section, the
insurer must remit to the homeowner an amount equal to any deductible the homeowner
has paid toward the damage.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 32.
new text begin
[65C.01] SCOPE AND PURPOSES.
new text end
new text begin Subdivision 1. new text end
new text begin Purpose. new text end
new text begin
The purpose of this chapter is to promote the public welfare
by creating a comprehensive legal framework within which travel insurance may be sold
in Minnesota.
new text end
new text begin Subd. 2. new text end
new text begin Application. new text end
new text begin
(a) This chapter applies to:
new text end
new text begin
(1) travel insurance that covers any Minnesota resident and is sold, solicited, negotiated,
or offered in Minnesota; and
new text end
new text begin
(2) policies and certificates that are delivered or issued for delivery in Minnesota.
new text end
new text begin
(b) This chapter does not apply to cancellation fee waivers or travel assistance services,
except as expressly provided in this chapter.
new text end
new text begin Subd. 3. new text end
new text begin Applicability of other law. new text end
new text begin
All other applicable provisions of Minnesota
insurance law apply to travel insurance, except that this chapter supersedes any general
provisions of law that would otherwise apply to travel insurance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 33.
new text begin
[65C.02] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Application. new text end
new text begin
For purposes of this chapter, the following terms have the
meanings given.
new text end
new text begin Subd. 2. new text end
new text begin Aggregator site. new text end
new text begin
"Aggregator site" means a website that provides access to
information, including product and insurer information, regarding insurance products from
more than one insurer for use in comparison shopping.
new text end
new text begin Subd. 3. new text end
new text begin Blanket travel insurance. new text end
new text begin
"Blanket travel insurance" means a travel insurance
policy issued to an eligible group providing coverage for specific classes of persons defined
in the policy, with coverage provided to all members of the eligible group without a separate
charge to individual members of the eligible group.
new text end
new text begin Subd. 4. new text end
new text begin Cancellation fee waiver. new text end
new text begin
"Cancellation fee waiver" means a contractual
agreement between a travel services supplier and the travel services supplier's customer to
waive some or all of the nonrefundable cancellation fee provisions contained in the supplier's
underlying travel contract, with or without regard to the reason for the cancellation or form
of reimbursement. A cancellation fee waiver is not insurance.
new text end
new text begin Subd. 5. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of commerce.
new text end
new text begin Subd. 6. new text end
new text begin Eligible group. new text end
new text begin
"Eligible group" means two or more persons who are engaged
in a common enterprise or have an economic, educational, or social affinity or relationship,
including but not limited to:
new text end
new text begin
(1) an entity engaged in the business of providing travel or travel services, including but
not limited to:
new text end
new text begin
(i) a tour operator, lodging provider, vacation property owner, hotel, resort, travel club,
travel agency, property manager, cultural exchange program, and common carrier; or
new text end
new text begin
(ii) the operator, owner, or lessor of a means of transporting passengers, including but
not limited to an airline, cruise line, railroad, steamship company, and public bus carrier,
if all group members or customers have a common exposure to the risk attendant to the
particular type of travel;
new text end
new text begin
(2) a college, school, or other institution of learning covering students, teachers,
employees, or volunteers;
new text end
new text begin
(3) an employer covering a group of employees, volunteers, contractors, board of
directors, dependents, or guests;
new text end
new text begin
(4) a sports team, camp, or sports team or camp sponsor covering participants, members,
campers, employees, officials, supervisors, or volunteers;
new text end
new text begin
(5) a religious, charitable, recreational, educational, or civic organization, or branch of
a religious, charitable, recreational, educational, or civic organization, covering any group
of members, participants, or volunteers;
new text end
new text begin
(6) a financial institution, financial institution vendor, parent holding company, trustee,
or agent or designee of one or more financial institutions or financial institution vendors,
including account holders, credit card holders, debtors, guarantors, or purchasers;
new text end
new text begin
(7) an incorporated or unincorporated association, including a labor union, that (i) has
a common interest, constitution, and bylaws, and (ii) is organized and maintained in good
faith for purposes other than obtaining insurance for members or participants of the
association covering the association's members;
new text end
new text begin
(8) a trust or the trustees of a fund established, created, or maintained for the benefit of
and to cover members, employees, or customers, subject to the commissioner authorizing
the use of a trust by one or more associations meeting the requirements under clause (7);
new text end
new text begin
(9) an entertainment production company covering a group of participants, volunteers,
audience members, contestants, or workers;
new text end
new text begin
(10) a volunteer fire department, ambulance, rescue, police, court, first aid, civil defense,
or other volunteer group;
new text end
new text begin
(11) a preschool, day care institution for children or adults, or senior citizen club;
new text end
new text begin
(12) an automobile or truck rental or leasing company covering a group of individuals
who may become renters, lessees, or passengers as defined by the group of individuals'
travel status on the rented or leased vehicles. The common carrier, operator, owner or lessor
of a means of transportation, or automobile or truck rental or leasing company is the
policyholder under a policy governed by this section; or
new text end
new text begin
(13) any other group the commissioner determines (i) is engaged in a common enterprise
or has an economic, educational, or social affinity or relationship, and (ii) for which policy
issuance is not contrary to the public interest.
new text end
new text begin Subd. 7. new text end
new text begin Fulfillment materials. new text end
new text begin
"Fulfillment materials" means documentation sent to
a person who purchases a travel protection plan that confirms the purchase and provides
the travel protection plan's coverage and assistance details.
new text end
new text begin Subd. 8. new text end
new text begin Group travel insurance. new text end
new text begin
"Group travel insurance" means travel insurance
issued to an eligible group.
new text end
new text begin Subd. 9. new text end
new text begin Limited lines travel insurance producer. new text end
new text begin
"Limited lines travel insurance
producer" has the meaning given in section 60K.383, subdivision 1, paragraph (b).
new text end
new text begin Subd. 10. new text end
new text begin Offer and disseminate. new text end
new text begin
"Offer and disseminate" has the meaning given in
section 60K.383, subdivision 1, paragraph (c).
new text end
new text begin Subd. 11. new text end
new text begin Primary certificate holder. new text end
new text begin
"Primary certificate holder" means an individual
who elects and purchases travel insurance under a group policy.
new text end
new text begin Subd. 12. new text end
new text begin Primary policyholder new text end
new text begin
"Primary policyholder" means an individual who elects
and purchases individual travel insurance.
new text end
new text begin Subd. 13. new text end
new text begin Travel administrator. new text end
new text begin
"Travel administrator" means a person who directly
or indirectly underwrites; collects charges, collateral, or premiums from; or adjusts or settles
claims on residents of Minnesota in connection with travel insurance. A person is not a
travel administrator if the person's only actions that otherwise indicate the person is a travel
administrator are:
new text end
new text begin
(1) a person works for a travel administrator, to the extent that the person's activities are
subject to the travel administrator's supervision and control;
new text end
new text begin
(2) an insurance producer sells insurance or engages in administrative and claims-related
activities within the scope of the producer's license;
new text end
new text begin
(3) a travel retailer (i) offers and disseminates travel insurance, and (ii) is registered
under the license of a limited lines travel insurance producer under this chapter;
new text end
new text begin
(4) an individual who (i) adjusts or settles claims in the normal course of the individual's
practice or employment as an attorney, and (ii) does not collect charges or premiums in
connection with insurance coverage; or
new text end
new text begin
(5) a business entity is affiliated with a licensed insurer while acting as a travel
administrator for the direct and assumed insurance business of an affiliated insurer.
new text end
new text begin Subd. 14. new text end
new text begin Travel assistance services. new text end
new text begin
"Travel assistance services" means noninsurance
services (1) for which the consumer is not indemnified based on a fortuitous event, and (2)
where providing the service does not result in transfer or shifting of risk that would constitute
the business of insurance. Travel assistance services include but are not limited to: security
advisories; destination information; vaccination and immunization information services;
travel reservation services; entertainment; activity and event planning; translation assistance;
emergency messaging; international legal and medical referrals; medical case monitoring;
coordination of transportation arrangements; emergency cash transfer assistance; medical
prescription replacement assistance; passport and travel document replacement assistance;
lost luggage assistance; concierge services; and any other service that is furnished in
connection with planned travel. Travel assistance services are not insurance and are not
related to insurance.
new text end
new text begin Subd. 15. new text end
new text begin Travel insurance. new text end
new text begin
"Travel insurance" has the meaning given in section
60K.383, subdivision 1, paragraph (d).
new text end
new text begin Subd. 16. new text end
new text begin Travel protection plan. new text end
new text begin
"Travel protection plan" means a plan that provides
one or more of the following:
new text end
new text begin
(1) travel insurance;
new text end
new text begin
(2) travel assistance services; or
new text end
new text begin
(3) cancellation fee waivers.
new text end
new text begin Subd. 17. new text end
new text begin Travel retailer. new text end
new text begin
"Travel retailer" has the meaning given in section 60K.383,
subdivision 1, paragraph (e).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 34.
new text begin
[65C.04] TRAVEL PROTECTION PLANS.
new text end
new text begin
A travel protection plan may be offered at one price for the combined features that the
travel protection plan offers in Minnesota if:
new text end
new text begin
(1) the travel protection plan:
new text end
new text begin
(i) clearly discloses to the consumer, at or before the time the travel protection plan is
purchased, that the travel protection plan includes travel insurance, travel assistance services,
and cancellation fee waivers, as applicable; and
new text end
new text begin
(ii) provides information and an opportunity, at or prior to the time the travel protection
plan is purchased, for the consumer to obtain additional information regarding the features
and pricing of the travel insurance, travel assistance services, and cancellation fee waivers;
and
new text end
new text begin
(2) the fulfillment materials:
new text end
new text begin
(i) describe and delineate the travel insurance, travel assistance services, and cancellation
fee waivers in the travel protection plan; and
new text end
new text begin
(ii) include the travel insurance disclosures and the contact information for the persons
providing travel assistance services and cancellation fee waivers, as applicable.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 35.
new text begin
[65C.05] SALES PRACTICES.
new text end
new text begin Subdivision 1. new text end
new text begin Other applicable law. new text end
new text begin
Except as otherwise provided in this section, a
person offering travel insurance to residents of Minnesota is subject to sections 72A.17 to
72A.32. If this chapter conflicts with chapters 59A to 79A regarding the sale and marketing
of travel insurance and travel protection plans, this chapter prevails.
new text end
new text begin Subd. 2. new text end
new text begin Illusory travel insurance. new text end
new text begin
A person that offers or sells a travel insurance policy
that could never result in payment of claims for an insured individual under the policy is
engaging in an unfair trade practice under sections 72A.17 to 72A.32.
new text end
new text begin Subd. 3. new text end
new text begin Marketing. new text end
new text begin
(a) All documents provided to consumers before purchasing travel
insurance, including but not limited to sales materials, advertising materials, and marketing
materials, must be consistent with the travel insurance policy, including but not limited to
forms, endorsements, policies, rate filings, and certificates of insurance.
new text end
new text begin
(b) A person that offers travel insurance policies or certificates that contain preexisting
condition exclusions must, before the insurance is purchased, provide a consumer with
information and an opportunity to learn more about the preexisting condition exclusions.
The information about preexisting condition exclusions must be included in the insurance
policy's coverage fulfillment materials.
new text end
new text begin
(c) The fulfillment materials and the information described in section 60K.383,
subdivision 2, paragraph (b), clause (1), must be provided to a policyholder or certificate
holder as soon as practicable after a travel protection plan is purchased. Unless the insured
individual has started a covered trip or filed a claim under the travel insurance coverage, a
policyholder or certificate holder may cancel a policy or certificate for a full refund of the
travel protection plan price from the date a travel protection plan is purchased until at least:
new text end
new text begin
(1) 15 days after the date the travel protection plan's fulfillment materials are delivered
by mail; or
new text end
new text begin
(2) ten days after the date the travel protection plan's fulfillment materials are delivered
by means other than mail.
new text end
new text begin
(d) For purposes of this section, "delivery" means (1) handing fulfillment materials to
the policyholder or certificate holder, or (2) sending fulfillment materials by mail or electronic
means to the policyholder or certificate holder.
new text end
new text begin
(e) The company must disclose in the policy documentation and fulfillment materials
whether the travel insurance is primary or secondary to other applicable coverage.
new text end
new text begin
(f) Travel insurance that is marketed directly to a consumer through an insurer's website
or by others through an aggregator site is not an unfair trade practice or other violation of
law if an accurate summary or short description of coverage is provided on the web page,
provided the consumer has access to the policy's full provisions by electronic means.
new text end
new text begin Subd. 4. new text end
new text begin Opt out. new text end
new text begin
A person that offers, solicits, or negotiates travel insurance or travel
protection plans on an individual or group basis is prohibited from offering, soliciting, or
negotiating travel insurance or travel protection plans by using negative option or opting
out that requires a consumer to take an affirmative action to deselect coverage, including
by unchecking a box on an electronic form, when the consumer purchases a trip.
new text end
new text begin Subd. 5. new text end
new text begin Other prohibitions. new text end
new text begin
A person that markets blanket travel insurance coverage
as free of cost is engaging in an unfair trade practice.
new text end
new text begin Subd. 6. new text end
new text begin Coverage required by other jurisdictions. new text end
new text begin
If a consumer's destination
jurisdiction requires insurance coverage, a person does not engage in an unfair trade practice
if the person requires a consumer to choose between the following options as a condition
of purchasing a trip or travel package:
new text end
new text begin
(1) purchasing the coverage required by the destination jurisdiction through the travel
retailer or limited lines travel insurance producer supplying the trip or travel package; or
new text end
new text begin
(2) agreeing to obtain and provide proof of coverage that meets the destination
jurisdiction's requirements prior to departure.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 36.
new text begin
[65C.06] TRAVEL ADMINISTRATORS.
new text end
new text begin
(a) Notwithstanding chapters 59A to 79A, a person is prohibited from acting as or
representing that the person is a travel administrator for travel insurance in Minnesota unless
the person:
new text end
new text begin
(1) is a licensed property and casualty insurance producer in Minnesota for activities
permitted under the property and casualty insurance producer license;
new text end
new text begin
(2) holds a valid managing general agent license in Minnesota; or
new text end
new text begin
(3) holds a valid third-party administrator license in Minnesota.
new text end
new text begin
(b) A travel administrator and the travel administrator's employees are exempt from the
licensing requirements of chapter 72B for travel insurance the travel administrator
administers.
new text end
new text begin
(c) An insurer is responsible for:
new text end
new text begin
(1) the acts of a travel administrator administering travel insurance underwritten by the
insurer; and
new text end
new text begin
(2) ensuring the travel administrator maintains all books and records relevant to the
insurer that the travel administrator must make available to the commissioner upon request.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 37.
new text begin
[65C.07] POLICY.
new text end
new text begin
(a) Notwithstanding chapters 59A to 79A, travel insurance is classified and filed for
purposes of rates and forms under an inland marine line of insurance. Notwithstanding this
paragraph, travel insurance that provides coverage for illness, accident, disability, or death
occurring during travel, either exclusively or in conjunction with related emergency
evacuation or repatriation of remains coverage, or incidental limited property and casualty
benefits, including baggage or trip cancellation, may be filed under either an accident and
health line of insurance or an inland marine line of insurance.
new text end
new text begin
(b) Travel insurance may be offered and issued in the form of an individual, group, or
blanket policy.
new text end
new text begin
(c) Eligibility and underwriting standards for travel insurance may be developed and
provided based on travel protection plans designed for individual or identified marketing
or distribution channels, provided the standards also meet the underwriting standards for
an inland marine line of insurance under Minnesota law.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective 90 days following the date of final
enactment.
new text end
Sec. 38.
Minnesota Statutes 2024, section 72A.18, subdivision 2, is amended to read:
Subd. 2.
Person.
"Person" means any individual, corporation, association, partnership,
reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, or any other legal
entity, engaged in the business of insurance, including an agent, a solicitor, deleted text begin ordeleted text end an adjuster
deleted text begin anddeleted text end new text begin , or an insurance lead generator.new text end For the purposes of sections 72A.31 and 72A.32 "person"
shall in addition mean any person, firm or corporation even though not engaged in the
business of insurance.
Sec. 39.
Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to
read:
new text begin Subd. 3. new text end
new text begin Insurance lead generator. new text end
new text begin
(a) "Insurance lead generator" means a person that
uses a lead-generating device to:
new text end
new text begin
(1) publicize the availability of what is or what purports to be an insurance product or
service that the person is not licensed to sell directly to a customer;
new text end
new text begin
(2) identify a customer who may be interested in learning more about an insurance
product; or
new text end
new text begin
(3) sell or transmit customer information to an insurer or producer for the purposes of
subsequent contact or sales activity.
new text end
new text begin
(b) For purposes of sections 72A.17 to 72A.32, insurance lead generator does not include
an insurer, as defined under section 72A.201, subdivision 3, clause (9), or an insurance
producer, as defined under section 60K.31, subdivision 6.
new text end
Sec. 40.
Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Lead-generating device. new text end
new text begin
"Lead-generating device" means communication
directed to the public that, regardless of the communication's form, content, or stated purpose,
is intended to result in compiling or qualifying a list containing names and other personal
information to solicit Minnesota residents to purchase what is or what purports to be an
insurance product or service.
new text end
Sec. 41.
Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Recording. new text end
new text begin
"Recording" means documenting a sale or verifying a call, including
a virtual technology call, to market an insurance product or service.
new text end
Sec. 42.
Minnesota Statutes 2024, section 72A.20, subdivision 2, is amended to read:
Subd. 2.
False information and advertising generally.
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,new text begin email, Internet advertisement or posting,new text end or other publication, or in the form of
a notice, circular, pamphlet, letter,new text begin electronic posting of any kind,new text end or poster, or over any
radio station,new text begin or using the Internet or other electronic means,new text end or in any other way, an
advertisement, announcement, or statement, containing any assertion, representation, or
statement with respect to the business of insurance, or with respect to any person in the
conduct of the person's insurance business, which is untrue, deceptive, or misleading, shall
constitute an unfair method of competition and an unfair and deceptive act or practice.
Sec. 43.
Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Failure to maintain certain records. new text end
new text begin
A person must maintain books, records,
documents, and other business records in a manner that ensures data regarding complaints
and marketing are accessible and retrievable for examination by the insurance commissioner.
A person must maintain data under this subdivision for at least the current calendar year
and the two preceding years.
new text end
Sec. 44.
Minnesota Statutes 2024, section 80G.01, subdivision 5a, is amended to read:
Subd. 5a.
Minnesota transaction.
"Minnesota transaction" means a bullion product
transaction conducted:
(1) by a dealer deleted text begin that is incorporated, registered, domiciled, or otherwisedeleted text end located in
Minnesota;
(2) by a dealer representative at a location in Minnesota;
(3) between a dealer and a consumer deleted text begin who livesdeleted text end in Minnesota; or
(4) between a dealer and a Minnesota consumer when the transaction involves:
(i) delivering or shipping a bullion product to an address in Minnesota;new text begin or
new text end
deleted text begin
(ii) delivering to or shipping from a precious metal depository on behalf of a Minnesota
resident; or
deleted text end
deleted text begin (iii)deleted text end new text begin (ii)new text end making payment to a consumer or receiving a payment from a consumer at an
address in Minnesota, unless the transaction occurs when the consumer is deleted text begin at a business
locationdeleted text end outside of Minnesota.
Sec. 45.
new text begin
[82B.081] NOTICE TO COMMISSIONER.
new text end
new text begin Subdivision 1. new text end
new text begin Change of application information. new text end
new text begin
A licensee must provide notice to
the commissioner if the information in the license application filed with the commissioner
changes. The notice must be provided in writing or another format prescribed by the
commissioner within ten days of the date the change occurs. For purposes of this subdivision,
an information change requiring notice includes but is not limited to a change with respect
to the licensee's personal name, trade name, address, or business location.
new text end
new text begin Subd. 2. new text end
new text begin Civil judgment. new text end
new text begin
The licensee must notify the commissioner of a final adverse
decision or court order, whether or not the decision or order is appealed, resulting from a
proceeding in which the licensee was named as a defendant and the final adverse decision
relates to fraud or misrepresentation. The notice must be provided in writing or another
format prescribed by the commissioner within ten days of the date the final adverse decision
or court order is issued.
new text end
new text begin Subd. 3. new text end
new text begin Disciplinary action. new text end
new text begin
The licensee must notify the commissioner of a disciplinary
action involving the licensee, including but not limited to a suspension or revocation of the
licensee's real property appraiser license or another occupational license issued by Minnesota
or another jurisdiction. The notice must be provided in writing or another format prescribed
by the commissioner within ten days of the date the disciplinary action occurs.
new text end
new text begin Subd. 4. new text end
new text begin Criminal offense. new text end
new text begin
The licensee must notify the commissioner if the licensee
is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a
felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a
similar violation of a real property appraiser licensing law. The notice must be provided in
writing or another format prescribed by the commissioner within ten days of the date the
charge, judgment, or plea occurs.
new text end
Sec. 46.
new text begin
[82C.031] NOTICE TO COMMISSIONER.
new text end
new text begin Subdivision 1. new text end
new text begin Change of application information. new text end
new text begin
A licensee must provide notice to
the commissioner if the information in the license application filed with the commissioner
changes. The notice must be provided in writing or another format prescribed by the
commissioner within ten days of the date the change occurs. For purposes of this subdivision,
an information change requiring notice includes but is not limited to a change with respect
to the licensee's personal name, trade name, address, or business location.
new text end
new text begin Subd. 2. new text end
new text begin Civil judgment. new text end
new text begin
The licensee must notify the commissioner of a final adverse
decision or court order, whether or not the decision or order is appealed, resulting from a
proceeding in which the licensee was named as a defendant and the final adverse decision
relates to fraud or misrepresentation. The notice must be provided in writing or another
format prescribed by the commissioner within ten days of the date the final adverse decision
or court order is issued.
new text end
new text begin Subd. 3. new text end
new text begin Disciplinary action. new text end
new text begin
The licensee must notify the commissioner of a disciplinary
action involving the licensee, including but not limited to a suspension or revocation of the
licensee's real property appraisal management company license issued by another jurisdiction.
The notice must be provided in writing or another format prescribed by the commissioner
within ten days of the date the disciplinary action occurs.
new text end
new text begin Subd. 4. new text end
new text begin Criminal offense. new text end
new text begin
The licensee must notify the commissioner if the licensee
is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a
felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a
similar violation of a real property appraisal management company licensing law. The notice
must be provided in writing or another format prescribed by the commissioner within ten
days of the date the charge, judgment, or plea occurs.
new text end
Sec. 47.
Minnesota Statutes 2024, section 332.32, is amended to read:
332.32 EXCLUSIONS.
(a) The term "collection agency" does not include banks when collecting accounts owed
to the banks and when the bank will sustain any loss arising from uncollectible accounts,
abstract companies doing an escrow business, real estate brokers, public officers, persons
acting under order of a court, lawyers, trust companies, insurance companies, credit unions,
savings associations, loan or finance companies unless they are engaged in asserting,
enforcing or prosecuting unsecured claims which have been purchased from any person,
firm, or association when there is recourse to the seller for all or part of the claim if the
claim is not collected.
(b) The term "collection agency" deleted text begin shalldeleted text end new text begin doesnew text end not include a trade association performing
services authorized by section 604.15, subdivision 4a, but the trade association in performing
the services may not engage in any conduct that would be prohibited for a collection agency
under section 332.37.
new text begin
(c) The term "collection agency" does not include a residential mortgage servicer licensed
under chapter 58 or a student loan servicer licensed under chapter 58B if the residential
mortgage servicer or student loan servicer is engaging in activities subject to licensure under
chapter 58 or 58B, as applicable.
new text end
ARTICLE 11
UNCLAIMED PROPERTY
Section 1.
Minnesota Statutes 2024, section 345.31, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Virtual currency. new text end
new text begin
"Virtual currency" means a digital representation of value
used as a medium of exchange, unit of account, or store of value that does not have legal
tender status recognized by the United States. Virtual currency does not include:
new text end
new text begin
(1) software or protocols governing the transfer of the digital representation of value;
new text end
new text begin
(2) game-related digital content; or
new text end
new text begin
(3) a loyalty card or gift card.
new text end
Sec. 2.
new text begin
[345.382] FUNDS HELD FOR THE PREPAYMENT OF FUNERAL
RELATED EXPENSES.
new text end
new text begin
Funds on deposit or held in trust for the prepayment of a funeral or other funeral-related
expenses are presumed abandoned at the earliest of:
new text end
new text begin
(1) three years after the date of death of the beneficiary;
new text end
new text begin
(2) one year after the date the beneficiary has attained, or would have attained if living,
the age of 105, if the holder does not know whether the beneficiary is deceased; or
new text end
new text begin
(3) 30 years after the contract for prepayment was executed.
new text end
Sec. 3.
new text begin
[345.383] EXEMPTION FOR CERTAIN PROPERTY HELD IN
TAX-DEFERRED ACCOUNTS.
new text end
new text begin
Property held in a plan described in section 529 or 529A of the Internal Revenue Code,
as amended, are exempt from the requirements of sections 345.31 to 345.60.
new text end
Sec. 4.
new text begin
[345.384] VIRTUAL CURRENCY.
new text end
new text begin
(a) Virtual currency is presumed abandoned three years after the apparent owner's latest
indication of interest in the virtual currency.
new text end
new text begin
(b) For purposes of this section, an indication of an apparent owner's interest in virtual
currency includes:
new text end
new text begin
(1) a record communicated by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held;
new text end
new text begin
(2) an oral communication by the apparent owner to the holder or agent of the holder
concerning the property or the account in which the property is held, if the holder or the
holder's agent contemporaneously makes and preserves a record of the fact of the apparent
owner's communication;
new text end
new text begin
(3) a distribution, or evidence of receipt of a distribution made by electronic or similar
means; or
new text end
new text begin
(4) activity directed by an apparent owner in the account in which the property is held,
including accessing the account or information concerning the account, or a direction by
the apparent owner to increase, decrease, or otherwise change the amount or type of virtual
currency held in the account.
new text end
new text begin
(c) An action by an agent or other representative of an apparent owner, other than the
holder acting as the apparent owner's agent, is presumed to be an action on behalf of the
apparent owner.
new text end
new text begin
(d) A communication with an apparent owner by a person other than the holder or the
holder's representative is not an indication of interest in the property by the apparent owner
unless a record of the communication evidences the apparent owner's knowledge of a right
to the property.
new text end
Sec. 5.
Minnesota Statutes 2024, section 345.43, is amended by adding a subdivision to
read:
new text begin Subd. 2b. new text end
new text begin Virtual currency. new text end
new text begin
(a) If property reported to the commissioner is virtual
currency, the holder must liquidate the virtual currency and remit the proceeds to the
commissioner.
new text end
new text begin
(b) The liquidation must occur anytime within 30 days before filing the report under
section 345A.26. The owner does not have recourse against the holder or the commissioner
to recover any gain in value that occurs after the liquidation of the virtual currency under
this subdivision.
new text end
new text begin
(c) If a holder cannot liquidate virtual currency and cannot otherwise cause virtual
currency to be liquidated, the holder must promptly notify the commissioner in writing and
explain the reasons why the virtual currency cannot be liquidated. The commissioner has
absolute and sole discretion to direct the holder to:
new text end
new text begin
(1) transfer the virtual currency that cannot be liquidated to a custodian selected by the
commissioner; or
new text end
new text begin
(2) continue to hold the virtual currency until the commissioner or the holder determines
that the virtual currency can be liquidated pursuant to this chapter.
new text end
ARTICLE 12
MISCELLANEOUS
Section 1.
Minnesota Statutes 2025 Supplement, 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 D4806-21adeleted text end new text begin D4806new 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 46.044, subdivision 1, is amended to read:
Subdivision 1.
Issuance and conditions.
An application for a bank charter must be
granted if (1) the applicants are of good moral character and financial integrity, (2) there is
a reasonable public demand for this bank in this location, (3) the probable volume of business
in this location is sufficient to deleted text begin insuredeleted text end new text begin ensurenew text end and maintain the solvency of the new bank and
the solvency of the then existing bank or banks in the locality without endangering the safety
of any bank in the locality as a place of deposit of public and private money, (4) the
commissioner of commerce is satisfied that the proposed bank will be properly and safely
managed, and (5) the commissioner is satisfied that the capital funds required pursuant to
section 48.02 are available and the commissioner may accept any reasonable demonstration
including subscription agreements supported by current financial statements. If the application
does not satisfy the requirements of this subdivision, it must be denied. In case of the denial
of the application, the commissioner of commerce shall specify the grounds for the denial.
A person aggrieved may obtain judicial review of the determination in accordance with
chapter 14.
Sec. 3.
Minnesota Statutes 2024, section 48.195, is amended to read:
48.195 INTEREST RATES; USURY LIMIT FOR DEPOSITORY INSTITUTIONS.
Notwithstanding any law to the contrary, a bank, savings bank, savings association, or
credit union organized under the laws of this state, or a national bank or federally chartered
savings bank, savings association, or credit union, doing business in this state, may charge
on any loan or discount made or upon any note, bill or other evidence of debt, except an
extension of credit made pursuant to section 48.185, interest at a rate of not more than 4-1/2
percent in excess of the discount rate, including any surcharge thereon, on 90-day commercial
paper in effect at thenew text begin Board of Governors of thenew text end Federal Reserve deleted text begin Bank located in the Ninth
Federal Reserve Districtdeleted text end new text begin Systemnew text end .
Sec. 4.
Minnesota Statutes 2024, section 49.37, is amended to read:
49.37 STOCKHOLDERS TO APPROVE; CERTIFICATE OF CONSOLIDATION
OR MERGER.
new text begin (a) new text end Either before or after the consolidation or merger agreement has been approved by
the commissioner of commerce, it must be submitted to the stockholders of each corporation
at a meeting thereof called, and it does not become binding upon the corporation until it has
been approved at each of the meetings required by this section by the vote or ballot of the
stockholders, holding at least a majority of the amount of stock of the respective corporations,
or a higher percentage as may be required by the certificate of incorporation of the
corporations. Proof of the holding of these meetings and the results thereof must be submitted
to the commissioner of commerce.
new text begin (b) new text end After the agreement called for by sections 49.33 to 49.41 has been approved by the
stockholders of the respective corporations and by the commissioner of commerce, the deleted text begin latter
shalldeleted text end new text begin commissioner of commerce mustnew text end issue a certificate reciting that the corporations have
complied with the provisions of sections 49.34 to 49.41 and declaring the consolidation or
merger of these corporations and the name of the consolidated or surviving corporation, the
amount of capital stock thereof, the names of the first board of directors, and the place of
business of the consolidated or surviving corporation, which must be within the city where
any of the constituent corporations have been previously authorized to have their places of
business.
new text begin (c) new text end Upon the issuing of this certificate deleted text begin and the filing of it for record in the Office of the
Secretary of Statedeleted text end , the incorporation is deemed to be complete in the case of the consolidation,
and the assets of the constituent corporations merged into the survivor in the case of a
merger, and the consolidated or surviving corporation shall, from the date of this certificate,
have the term of corporate existence as may be specified in it, not exceeding the longest
unexpired term of any constituent corporation. The certificate of the commissioner of
commerce is prima facie evidence that all of the provisions of sections 49.34 to 49.41 have
been complied with, and is conclusive evidence of the existence of the consolidated or
surviving corporation.
Sec. 5.
Minnesota Statutes 2024, section 60A.13, subdivision 1, is amended to read:
Subdivision 1.
Annual statements required.
Every insurance company, including
fraternal benefit societies, and reciprocal exchanges, doing business in this state, shall file
with the commissionerdeleted text begin , annually, on or before March 1,deleted text end the appropriate verified National
Association of Insurance Commissioners' annual statement blankdeleted text begin ,deleted text end new text begin on or before April 30 for
all lines of insurance except health, which must be filed on or before May 31. The National
Association of Insurance Commissioners' annual statement blank must benew text end prepared in
accordance with the association's instructions handbook and following those accounting
procedures and practices prescribed by the association's accounting practices and procedures
manual, unless the commissioner requires or finds another method of valuation reasonable
under the circumstances. Another method of valuation permitted by the commissioner must
be at least as conservative as those prescribed in the association's manual. All companies
required to file an annual statement under this subdivision may also be required to file with
the commissioner and the National Association of Insurance Commissioners a copy of their
annual statement in an electronic form prescribed by the commissioner. All Minnesota
domestic insurers required to file annual statements under this subdivision must also file
quarterly statements with the commissioner for the first, second, and third calendar quarter
on or before 45 days after the end of the applicable quarter, prepared in accordance with
the association's instruction handbook. All companies required to file quarterly statements
under this subdivision may also be required to file the quarterly statements with the
commissioner and the National Association of Insurance Commissioners in an electronic
form prescribed by the commissioner. In addition, the commissioner may require the filing
of any other information determined to be reasonably necessary for the continual enforcement
of these laws. The statement may be limited to the insurer's business and condition in the
United States unless the commissioner finds that the business conducted outside the United
States may detrimentally affect the interests of policyholders in this state. The statements
shall also contain a verified schedule showing all details required by law for assessment
and taxation. The statement or schedules shall be in the form and shall contain all matters
the commissioner may prescribe, and it may be varied as to different types of insurers so
as to elicit a true exhibit of the condition of each insurer.
Sec. 6.
Minnesota Statutes 2024, section 60A.13, subdivision 6, is amended to read:
Subd. 6.
Company or agent cannot continue business unless statement is filed.
deleted text begin Nodeleted text end new text begin
Anew text end company deleted text begin shall transactdeleted text end new text begin is prohibited from transactingnew text end any new business in this state after
deleted text begin Maydeleted text end new text begin Augustnew text end 31 in any year unless deleted text begin it shall havedeleted text end new text begin the companynew text end previously transmitted its
annual statement to the commissioner and filed a copy of its statement with the National
Association of Insurance Commissioners. The commissioner may by order annually require
that each insurer pay the required fee to the National Association of Insurance Commissioners
for the filing of annual statements, but the fee shall not be more than 50 percent greater than
the fee set by the National Association of Insurance Commissioners. Failure to file the
annual statement with the commissioner or the National Association of Insurance
Commissioners is a violation of section 72A.061, subdivision 1. The fee shall be based on
the relative premium volume of each insurer.
Sec. 7.
Minnesota Statutes 2024, section 62J.96, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Violation as deceptive practice. new text end
new text begin
A violation of this section is an unfair or
deceptive trade practice under section 8.31, subdivision 1, and is enforceable by the attorney
general.
new text end
Sec. 8.
Minnesota Statutes 2024, section 72A.061, subdivision 5, is amended to read:
Subd. 5.
Extensions.
The commissioner may grant an extension of any filing deadline
or requirement specified by this sectiondeleted text begin , on receiving, not less than ten daysdeleted text end new text begin if the
commissioner receives a written request for an extension from the companynew text end before the date
of defaultdeleted text begin , satisfactory evidence of imminent hardship to the companydeleted text end .
Sec. 9.
Minnesota Statutes 2025 Supplement, 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 D4814-24adeleted text end new text begin D4814new 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. 10.
Minnesota Statutes 2025 Supplement, 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 D4814-24adeleted text end new text begin D4814new text end , or the gasoline base stock from
which a gasoline-ethanol blend was produced must comply with ASTM specification
deleted text begin D4814-24adeleted text end new text begin D4814new 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. 11.
Minnesota Statutes 2025 Supplement, 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 D4806-21adeleted text end new text begin D4806new 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. 12.
Minnesota Statutes 2025 Supplement, 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 D4814-24adeleted text end new text begin D4814new 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. 13.
Minnesota Statutes 2024, section 239.761, subdivision 7, is amended to read:
Subd. 7.
Heating fuel oil.
Heating fuel oil must comply with ASTM specification
deleted text begin D396-12deleted text end new text begin D396new text end .
Sec. 14.
Minnesota Statutes 2024, section 239.761, subdivision 8, is amended to read:
Subd. 8.
Diesel fuel oil.
(a) When diesel fuel oil is not blended with biodiesel, it must
comply with ASTM specification deleted text begin D975-12adeleted text end new text begin D975new text end .
(b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel
component must comply with ASTM specification deleted text begin D975-12adeleted text end new text begin D975new text end and the biodiesel
component must comply with ASTM specification deleted text begin D6751-11bdeleted text end new text begin D6751new text end .
Sec. 15.
Minnesota Statutes 2024, section 239.761, subdivision 9, is amended to read:
Subd. 9.
Kerosene.
Kerosene must comply with ASTM specification deleted text begin D3699-08deleted text end new text begin D3699new text end .
Sec. 16.
Minnesota Statutes 2024, section 239.761, subdivision 10, is amended to read:
Subd. 10.
Aviation gasoline.
Aviation gasoline must comply with ASTM specification
deleted text begin D910-11deleted text end new text begin D910new text end .
Sec. 17.
Minnesota Statutes 2024, section 239.761, subdivision 11, is amended to read:
Subd. 11.
Aviation turbine fuel, jet fuel.
Aviation turbine fuel and jet fuel must comply
with ASTM specification deleted text begin D1655-12deleted text end new text begin D1655new text end .
Sec. 18.
Minnesota Statutes 2024, section 239.761, subdivision 12, is amended to read:
Subd. 12.
Gas turbine fuel oil.
Fuel oil for use in nonaviation gas turbine engines must
comply with ASTM specification deleted text begin D2880-03deleted text end new text begin D2880new text end .
Sec. 19.
Minnesota Statutes 2024, section 239.761, subdivision 13, is amended to read:
Subd. 13.
E85.
A blend of ethanol and gasoline, containing not more than 85 percent
ethanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section
296A.01, subdivision 5, must comply with ASTM specification deleted text begin D5798-11deleted text end new text begin D5798new text end .
Sec. 20.
Minnesota Statutes 2024, section 239.761, subdivision 14, is amended to read:
Subd. 14.
M85.
A blend of methanol and gasoline, containing at least 70 percent methanol
and not more than 85 percent methanol, produced for use as a motor fuel in alternative fuel
vehicles as defined in section 296A.01, subdivision 5, must comply with ASTM specification
deleted text begin D5797-07deleted text end new text begin D5797new text end .
Sec. 21.
Minnesota Statutes 2024, section 239.761, subdivision 16, is amended to read:
Subd. 16.
Biodiesel fuel definition.
"Biodiesel fuel" means a renewable, biodegradable,
mono alkyl ester combustible liquid that is derived from agricultural plant oils or animal
fats and that meets American Society for Testing and Materials (ASTM) specification
deleted text begin D6751-11bdeleted text end new text begin D6751new text end for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.
Sec. 22.
Minnesota Statutes 2024, section 239.761, subdivision 17, is amended to read:
Subd. 17.
Grade 82 unleaded aviation gasoline.
Grade 82 unleaded aviation gasoline
must comply with ASTM specification deleted text begin D6227-12deleted text end new text begin D6227new text end .
Sec. 23.
Minnesota Statutes 2024, section 239.77, subdivision 1, is amended to read:
Subdivision 1.
Biodiesel blend and fuel.
(a) "Biodiesel blend" is a blend of diesel fuel
and biodiesel fuel between six percent and 20 percent for on-road and off-road diesel-fueled
vehicle use. Biodiesel blend must comply with ASTM specification deleted text begin D7467-10deleted text end new text begin D7467new text end .
(b) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible
liquid fuel that is derived from agricultural and other plant oils or animal fats and that meets
American Society for Testing and Materials specification deleted text begin D6751-11bdeleted text end new text begin D6751new text end for Biodiesel
Fuel (B100) Blend Stock for Distillate Fuels.
(c) Biodiesel produced from palm oil is not biodiesel fuel for the purposes of this section,
unless the palm oil is contained within waste oil and grease collected within the United
States or Canada.
Sec. 24.
Minnesota Statutes 2024, section 296A.01, subdivision 7, is amended to read:
Subd. 7.
Aviation gasoline.
"Aviation gasoline" means any gasoline that is used to
produce or generate power for propelling internal combustion engine aircraft.
Aviation gasoline includes any gasoline:
(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor
or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation
gasoline" that meets specifications in ASTM specification deleted text begin D910-16deleted text end new text begin D910new text end or any other
ASTM specification as gasoline appropriate for use in producing or generating power for
propelling internal combustion engine aircraft; or
(2) sold to a dealer of aviation gasoline for dispensing directly into the fuel tank of an
aircraft.
Sec. 25.
Minnesota Statutes 2024, section 296A.01, subdivision 8, is amended to read:
Subd. 8.
Aviation turbine fuel and jet fuel.
"Aviation turbine fuel" and "jet fuel" mean
blends of hydrocarbons derived from crude petroleum, natural gasoline, and synthetic
hydrocarbons, intended for use in aviation turbine engines, and that meet the specifications
in ASTM specification deleted text begin D1655-12deleted text end new text begin D1655new text end .
Sec. 26.
Minnesota Statutes 2024, section 296A.01, subdivision 14, is amended to read:
Subd. 14.
Diesel fuel oil.
"Diesel fuel oil" means a petroleum distillate or blend of
petroleum distillate and residual fuels that is intended for use as a motor fuel in internal
combustion diesel engines and that meets ASTM specification deleted text begin D975-11bdeleted text end new text begin D975new text end .
Sec. 27.
Minnesota Statutes 2024, section 296A.01, subdivision 19, is amended to read:
Subd. 19.
E85.
"E85" means a petroleum product that is a blend of agriculturally derived
denatured ethanol and gasoline or natural gasoline that contains not more than 85 percent
ethanol by volume, but at a minimum must contain greater than 50 percent ethanol by
volume. For the purposes of this chapter, the energy content of E85 will be considered to
be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles
as defined in subdivision 5 must comply with ASTM specification deleted text begin D5798-11deleted text end new text begin D5798new text end .
Sec. 28.
Minnesota Statutes 2025 Supplement, 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 D4806-21adeleted text end new text begin D4806new 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. 29.
Minnesota Statutes 2024, section 296A.01, subdivision 22, is amended to read:
Subd. 22.
Gas turbine fuel oil.
"Gas turbine fuel oil" means fuel that contains mixtures
of hydrocarbon oils free of inorganic acid and excessive amounts of solid or fibrous foreign
matter, intended for use in nonaviation gas turbine engines, and that meets the specifications
in ASTM specification deleted text begin D2880-03deleted text end new text begin D2880new text end .
Sec. 30.
Minnesota Statutes 2025 Supplement, 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 D4814-24adeleted text end new text begin D4814new 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 D4814-24adeleted text end new text begin D4814new 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. 31.
Minnesota Statutes 2025 Supplement, 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 D4814-24adeleted text end new text begin D4814new 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. 32.
Minnesota Statutes 2024, section 296A.01, subdivision 26, is amended to read:
Subd. 26.
Heating fuel oil.
"Heating fuel oil" means a petroleum distillate, blend of
petroleum distillates and residuals, or petroleum residual heating fuel that meets the
specifications in ASTM specification deleted text begin D396-12deleted text end new text begin D396new text end .
Sec. 33.
Minnesota Statutes 2024, section 296A.01, subdivision 28, is amended to read:
Subd. 28.
Kerosene.
"Kerosene" means a refined petroleum distillate consisting of a
homogeneous mixture of hydrocarbons essentially free of water, inorganic acidic and basic
compounds, and excessive amounts of particulate contaminants and that meets the
specifications in ASTM specification deleted text begin D3699-08deleted text end new text begin D3699new text end .
Sec. 34.
Minnesota Statutes 2024, section 296A.01, subdivision 35, is amended to read:
Subd. 35.
M85.
"M85" means a petroleum product that is a liquid fuel blend of methanol
and gasoline that contains at least 70 percent methanol and not more than 85 percent methanol
by volume. For the purposes of this chapter, the energy content of M85 will be considered
to be 65,000 BTUs per gallon. M85 produced for use as a motor fuel in alternative fuel
vehicles, as defined in subdivision 5, must comply with ASTM specification deleted text begin D5797-07deleted text end new text begin
D5797new text end .
Sec. 35.
Minnesota Statutes 2024, section 349.211, subdivision 2b, is amended to read:
Subd. 2b.
Paddlewheel prizes.
new text begin (a)new text end The maximum cash prize deleted text begin whichdeleted text end new text begin thatnew text end may be awarded
for a paddle ticket is $70. new text begin The maximum value of a merchandise prize that may be awarded
for a paddle ticket must not exceed a fair market value of $200.new text end An organization may not
sell any paddle ticket for more than deleted text begin $2deleted text end new text begin $5new text end .
new text begin
(b) "Merchandise prize" does not include gift cards that can be redeemed for cash.
new text end
Sec. 36. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 48.158; and 62J.96, subdivision 3,
new text end
new text begin
are repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: S4365-1
48.158 SETTLEMENT OF CHECKS AT LESS THAN PAR.
No bank or trust company organized under the laws of this state shall settle any check drawn on it otherwise than at par. The provisions of this section shall not apply with respect to the settlement of a check sent to such bank or trust company as a special collection item. This section is in effect on and after November 1, 1968.
53B.69 DEFINITIONS.
Subd. 3b.
New customer.
"New customer" means a consumer transacting at a kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for less than 72 hours. After a 72-hour period has elapsed from the day of first signing up as a customer with a virtual currency kiosk operator, the customer will be considered an existing customer and no longer subject to the new customer transaction limit described in section 53B.75, subdivision 5, paragraph (a).
Subd. 3c.
Existing customer.
"Existing customer" means a consumer transacting at a kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for more than a 72-hour period. A new customer will automatically convert to an existing customer after the 72-hour period of first becoming a new customer. An existing customer is subject to the transaction limits described in section 53B.75, subdivision 5, paragraph (b).
53B.75 VIRTUAL CURRENCY KIOSKS.
Subdivision 1.
Disclosures on material risks.
(a) Before entering into an initial virtual currency transaction for, on behalf of, or with a person, the virtual currency kiosk operator must disclose in a clear, conspicuous, and easily readable manner all material risks generally associated with virtual currency. The disclosures must be displayed on the screen of the virtual currency kiosk with the ability for a person to acknowledge the receipt of the disclosures. The disclosures must include at least the following information:
(1) virtual currency is not legal tender, backed or insured by the government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation protections;
(2) some virtual currency transactions are deemed to be made when recorded on a public ledger, which may not be the date or time when the person initiates the transaction;
(3) virtual currency's value may be derived from market participants' continued willingness to exchange fiat currency for virtual currency, which may result in the permanent and total loss of a particular virtual currency's value if the market for virtual currency disappears;
(4) a person who accepts a virtual currency as payment today is not required to accept and might not accept virtual currency in the future;
(5) the volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period;
(6) the nature of virtual currency means that any technological difficulties experienced by virtual currency kiosk operators may prevent access to or use of a person's virtual currency; and
(7) any bond maintained by the virtual currency kiosk operator for the benefit of a person may not cover all losses a person incurs.
(b) The virtual currency kiosk operator must provide an additional disclosure, which must be acknowledged by the person, written prominently and in bold type, and provided separately from the disclosures above, stating: "WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME, AND INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY."
Subd. 2.
Disclosures.
(a) A virtual currency kiosk operator must disclose all relevant terms and conditions generally associated with the products, services, and activities of the virtual currency kiosk operator and virtual currency. A virtual currency kiosk operator must make the disclosures in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following:
(1) the person's liability for unauthorized virtual currency transactions;
(2) the person's right to:
(i) stop payment of a virtual currency transfer and the procedure to stop payment;
(ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of the transaction; and
(iii) prior notice of a change in the virtual currency kiosk operator's rules or policies;
(3) under what circumstances the virtual currency kiosk operator, without a court or government order, discloses a person's account information to third parties; and
(4) other disclosures that are customarily provided in connection with opening a person's account.
(b) Before each virtual currency transaction for, on behalf of, or with a person, a virtual currency kiosk operator must disclose the transaction's terms and conditions in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following:
(1) the amount of the transaction;
(2) any fees, expenses, and charges, including applicable exchange rates;
(3) the type and nature of the transaction;
(4) a warning that once completed, the transaction may not be reversed;
(5) a daily virtual currency transaction limit of no more than $2,000;
(6) the difference in the virtual currency's sale price compared to the current market price; and
(7) other disclosures that are customarily given in connection with a virtual currency transaction.
Subd. 3.
Acknowledgment of disclosures.
Before completing a transaction, a virtual currency kiosk operator must ensure that each person who engages in a virtual currency transaction using the virtual currency operator's kiosk acknowledges receipt of all disclosures required under this section via confirmation of consent. Additionally, upon a transaction's completion, the virtual currency kiosk operator must provide a person with a physical receipt, or a virtual receipt sent to the person's email address or SMS number, containing the following information:
(1) the virtual currency kiosk operator's name and contact information, including a telephone number to answer questions and register complaints;
(2) the type, value, date, and precise time of the transaction, transaction hash, and each virtual currency address;
(3) the fees charged;
(4) the exchange rate;
(5) a statement of the virtual currency kiosk operator's liability for nondelivery or delayed delivery;
(6) a statement of the virtual currency kiosk operator's refund policy; and
(7) any additional information the commissioner of commerce may require.
Subd. 4.
Refunds for new customers.
A virtual currency kiosk operator must issue a refund to a new customer for the full amount of all transactions made within the 72-hour new customer time period, as described in section 53B.69, subdivision 3b, upon request of the customer. In order to receive a refund under this subdivision, a customer must:
(1) have been fraudulently induced to engage in the virtual currency transactions; and
(2) within 14 days of the last transaction to occur during the 72-hour new customer time period, contact the virtual currency kiosk operator and a government or law enforcement agency to inform them of the fraudulent nature of the transaction.
Subd. 5.
Transaction limits.
(a) There is an established maximum daily transaction limit of $2,000 for each new customer of a virtual currency kiosk.
(b) The maximum daily transaction limit of an existing customer shall be decided by each virtual currency kiosk operator in compliance with federal law.
56.08 ANNUAL LICENSE FEE.
Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year.
62J.86 DEFINITIONS.
Subd. 2.
Advisory council.
"Advisory council" means the Prescription Drug Affordability Advisory Council established under section 62J.88.
62J.88 PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL.
Subdivision 1.
Establishment.
The governor shall appoint a 18-member stakeholder advisory council to provide advice to the board on drug cost issues and to represent stakeholders' views. The governor shall appoint the members of the advisory council based on the members' knowledge and demonstrated expertise in one or more of the following areas: the pharmaceutical business; practice of medicine; patient perspectives; health care cost trends and drivers; clinical and health services research; and the health care marketplace.
Subd. 2.
Membership.
The council's membership shall consist of the following:
(1) two members representing patients and health care consumers;
(2) two members representing health care providers;
(3) one member representing health plan companies;
(4) two members representing employers, with one member representing large employers and one member representing small employers;
(5) one member representing government employee benefit plans;
(6) one member representing pharmaceutical manufacturers;
(7) one member who is a health services clinical researcher;
(8) one member who is a pharmacologist;
(9) one member representing the commissioner of health with expertise in health economics;
(10) one member representing pharmaceutical wholesalers;
(11) one member representing pharmacy benefit managers;
(12) one member from the Rare Disease Advisory Council;
(13) one member representing generic drug manufacturers;
(14) one member representing pharmaceutical distributors; and
(15) one member who is an oncologist who is not employed by, under contract with, or otherwise affiliated with a hospital.
Subd. 3.
Terms.
(a) The initial appointments to the advisory council must be made by January 1, 2024. The initial appointed advisory council members shall serve staggered terms of two, three, or four years, determined by lot by the secretary of state. Following the initial appointments, the advisory council members shall serve four-year terms.
(b) Removal and vacancies of advisory council members shall be governed by section 15.059.
Subd. 4.
Compensation.
Advisory council members may be compensated according to section 15.059, except that those advisory council members designated in subdivision 2, clauses (10) to (15), must not be compensated.
Subd. 5.
Meetings.
Meetings of the advisory council are subject to chapter 13D. The advisory council shall meet publicly at least every three months to advise the board on drug cost issues related to the prescription drug product information submitted to the board under section 62J.90.
62J.96 ACCESS TO 340B DRUGS.
Subd. 3.
Expiration.
This section expires July 1, 2027.
237.065 RATE FOR SCHOOL OR PURCHASING COOPERATIVE.
Subdivision 1.
Basic service; flat rate.
Each telephone company that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to 12th grade shall provide, upon request, additional service to the school that is sufficient to ensure access to basic telephone service from each classroom and other areas within the school, as determined by the school board. Each company shall set a flat rate for this additional service that is less than the company's flat rate for an access line for a business and the same as or greater than the company's flat rate for an access line for a residence in the same local telephone service exchange. When a company's flat rates for businesses and residences are the same, the company shall use the residential rate for service to schools under this section. The rate required under this section is available only for a school that installs additional service that includes access to basic telephone service from each classroom and other areas within the school, as determined by the school board.
Subd. 2.
Basic and advanced telecommunication service; reduced rate.
(a) Notwithstanding the provisions of sections 237.09, 237.14, 237.60, subdivision 3, and 237.74, each telephone company and telecommunications carrier that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to grade 12, a public library, or a telecommunication services purchasing cooperative may provide, upon request, basic and advanced telecommunication services at reduced or no cost to that school, library, or may provide, upon request, advanced telecommunication services at reduced wholesale rates to the members of a telecommunication services purchasing cooperative. For purposes of this section, a "telecommunication services purchasing cooperative" means a cooperative organized under section 308A.210. A school or library receiving telecommunications services at reduced or no cost may not resell or sublease the discounted services. No members of a telecommunication services purchasing cooperative may resell or sublease the discounted services. A purchasing cooperative is not required to negotiate or provide a uniform rate for its members. Telecommunications services shall be provided in accordance with Public Law 104-104, and the regulations of the Federal Communications Commission adopted under the act.
(b) An agent that provides telecommunications services to a school or library may request the favorable rate on behalf of and for the exclusive benefit of the school or library. The school or library must authorize the agent to make the request of the local telephone company or telecommunications carrier. The telephone company or telecommunications carrier is not required to offer the same price discount to the agent that it would offer to the school district or library. An agent that receives a price discount for telecommunications services on behalf of a school or library may only resell or sublease the discounted services to that school or library.
(c) For the purposes of this subdivision, "school" includes a public school as defined in section 120A.05, nonpublic, and church or religious organization schools that provide instruction in compliance with sections 120A.22, 120A.24, and 120A.41.
237.066 STATE GOVERNMENT PRICING PLANS.
Subdivision 1.
Purpose.
A state government or Tribal government telecommunications pricing plan is authorized and found to be in the public interest as it will:
(1) provide and ensure availability of high-quality, technologically advanced telecommunications services at a reasonable cost to the state or Tribal government; and
(2) further the state telecommunications goals as set forth in section 237.011.
Subd. 2.
Program participation.
A state government or Tribal government telecommunications pricing plan may be available to serve individually or collectively: state agencies; Tribal governments; educational institutions, including public schools and Tribal schools complying with section 120A.05, subdivision 9, 11, 13, or 17, and nonpublic schools complying with sections 120A.22, 120A.24, and 120A.41; private colleges; public corporations; and political subdivisions of the state or a Tribal Nation. Plans shall be available to carry out the commissioner of administration's duties under sections 16E.17 and 16E.18 and shall also be available to those entities not using the commissioner for contracting for telecommunications services.
Subd. 3.
Rates.
Notwithstanding section 237.09, 237.14, 237.60, subdivision 3, or 237.74, a telephone company or a telecommunications carrier may, individually or in cooperation with other telephone companies or telecommunications carriers, develop and offer basic or advanced telecommunications services at discounted or reduced rates as a state government or Tribal government telecommunications pricing plan. Any telecommunications services provided under any state government or Tribal government telecommunications pricing plan shall be used exclusively by the entities described in subdivision 2 subject to the plan solely for the entities' own use and shall not be made available to any other entities by resale, sublease, or in any other way.
Subd. 4.
Applicability to other customers.
A telephone company or telecommunications carrier providing telecommunications services under a state government or Tribal government telecommunications pricing plan is not required to provide any other person or entity those services at the rates made available to the state or Tribal government.
Subd. 5.
Commission review.
(a) The terms and conditions of any state government or Tribal government telecommunications pricing plan must be submitted to the commission for review and approval within 90 days before implementation to:
(1) ensure that the terms and conditions benefit the state or Tribal Nation and not any private entity;
(2) ensure that the rates for any telecommunications service in any state government or Tribal government telecommunications pricing plan are at or below any applicable tariffed rates; and
(3) ensure that the state telecommunications or Tribal government pricing plan meets the requirements of this section and is in the public interest.
(b) The commission shall reject any state government or Tribal government telecommunications pricing plan that does not meet the criteria in paragraph (a).
237.067 ESTABLISHMENT EXEMPT FROM REGULATION.
Subdivision 1.
Definition.
For purposes of this section, "establishment" means an individual hotel, motel, restaurant, lodging house, boarding house, resort, or place of refreshment licensed under chapter 157.
Subd. 2.
Exemption; conditions.
An establishment that provides telephone service to patrons on the premises of the establishment is not subject to regulation under this chapter, except that the establishment:
(1) shall comply with the requirement of section 237.06 that rates charged must be fair and reasonable;
(2) shall provide notice of charges and service providers to patrons as required in section 325F.99; and
(3) is subject to the complaint and investigation procedures of section 237.081.
237.071 SPECIAL PRICING.
Except as prohibited by section 237.60, subdivision 3, prices unique to a particular customer or group of customers may be allowed for noncompetitive services and for services subject to emerging competition when differences in the cost of providing a service or a service element justifies a different price for a particular customer or group of customers. Individual pricing for services subject to emerging competition may be allowed when a uniform price should not be required because of market conditions. Unique or individual prices for services or service elements in effect before July 1, 1989, are deemed to have been approved under this section.
237.072 LIMITATION ON RATE CHANGE.
(a) After December 15, 1997, the commission, notwithstanding any provision to the contrary, shall not allow an incumbent telephone company with more than 1,000,000 access lines in Minnesota to change its retail rates for telecommunications services without a determination of its revenue requirement pursuant to section 237.075 unless the incumbent telephone company is regulated pursuant to sections 237.76 to 237.773.
(b) If, prior to December 15, 1997, the incumbent telephone company petitions the commission to become subject to an alternative regulation plan under sections 237.76 to 237.773, paragraph (a) shall not apply to the petitioning company until 270 days after the date of the filing of the petition.
237.075 RATE CHANGE.
Subdivision 1.
Notice.
Unless the commission otherwise orders, no telephone company shall change a rate which has been duly established under this chapter, except upon 60 days' notice to the commission. The notice shall include statements of facts, expert opinions, substantiating documents, and exhibits, supporting the change requested, and state the change proposed to be made in the rates then in force and the time when the modified rates will go into effect. The filing telephone company shall give written notice, as approved by the commission, of the proposed change to the governing body of each municipality and county in the area affected. All proposed changes shall be shown by filing new schedules or shall be plainly indicated upon schedules on file and in force at the time.
Subd. 2.
Suspension of proposed rate; hearing; final determination defined.
(a) Whenever there is filed with the commission as provided in subdivision 1 a schedule modifying or resulting in a change in any rate then in force, the commission may suspend the operation of the schedule by filing with the schedule of rates and delivering to the affected telephone company a statement in writing of its reasons for the suspension at any time before the rates become effective. The suspension shall not be for a longer period than ten months beyond the initial filing date except as provided in paragraph (b). During the suspension the commission shall determine whether all questions of the reasonableness of the rates requested raised by persons deemed interested or by the department can be resolved to the satisfaction of the commission. If the commission finds that all significant issues raised have not been resolved to its satisfaction, or upon petition by ten percent of the affected customers or 250 affected customers, whichever is less, it shall refer the matter to the Office of Administrative Hearings with instructions for a public hearing as a contested case pursuant to chapter 14, except as otherwise provided in this section. The commission may order that the issues presented by the proposed rate changes be bifurcated into two separate hearings as follows: (1) determination of the telephone company's revenue requirements and (2) determination of the rate design. Upon issuance of both administrative law judge reports, the issues shall again be joined for consideration and final determination by the commission. All prehearing discovery activities of state agency intervenors shall be consolidated and conducted by the Department of Commerce. If the commission does not make a final determination concerning a schedule of rates within ten months after the initial filing date, the schedule shall be deemed to have been approved by the commission; except if a settlement has been submitted to and rejected by the commission, the schedule is deemed to have been approved 12 months after the initial filing.
(b) If the commission finds that it has insufficient time during the suspension period to make a final determination of a case involving changes in general rates because of the need to make final determinations of other previously filed cases involving changes in general rates under this section or section 216B.16, the commission may extend the suspension period to the extent necessary to allow itself 20 working days to make the final determination after it has made final determinations in the previously filed cases. An extension of the suspension period under this paragraph does not alter the setting of interim rates under subdivision 3.
(c) For the purposes of this section, "final determination" means the initial decision of the commission and not any order which may be entered by the commission in response to a petition for rehearing or other further relief. The commission may further suspend rates until it determines all those petitions.
Subd. 3.
Interim rate; refund.
Notwithstanding any order of suspension of a proposed increase in rates, the commission shall order an interim rate schedule into effect not later than 60 days after the initial filing date. The commission shall order the interim rate schedule ex parte without a public hearing. Notwithstanding the provisions of sections 216.25 and 237.25, no interim rate schedule ordered by the commission pursuant to this subdivision shall be subject to an application for a rehearing or an appeal to a court until the commission has rendered its final determination. Unless the commission finds that exigent circumstances exist, the interim rate schedule shall be calculated using the proposed test-year cost of capital, rate base, and expenses, except that it shall include: (1) a rate of return on common equity for the company equal to that authorized by the commission in the company's most recent rate proceeding; (2) rate base or expense items the same in nature and kind as those allowed by a currently effective order of the commission in the company's most recent rate proceeding; and (3) no change in the existing rate design, except for products and services offered by nonregulated competitors. In the case of a company which has not been subject to a prior commission determination or has not had a general rate adjustment in the preceding three years, the commission shall base the interim rate schedule on its most recent determination concerning a similar company.
If, at the time of its final determination, the commission finds that the interim rates are in excess of the rates in the final determination, the commission shall order the company to refund the excess amount collected under the interim rate schedule, including interest on it which shall be at the rate of interest determined by the commission. The company shall commence distribution of the refund to its customers within 120 days of the final order, not subject to rehearing or appeal. If, at the time of its final determination, the commission finds that the interim rates are less than the rates in the final determination, the commission shall prescribe a method by which the company will recover the difference in revenues from the date of the final determination to the date the new rate schedules are put into effect.
If the telephone company fails to make refunds within the period of time prescribed by the commission, the commission shall sue therefor and may recover on behalf of all persons entitled to a refund. In addition to the amount of the refund and interest due, the commission shall be entitled to recover reasonable attorney's fees, court costs and estimated cost of administering the distribution of the refund to persons entitled thereto. No suit under this subdivision shall be maintained unless instituted within two years after the end of the period of time prescribed by the commission for repayment of refunds. The commission shall not order an interim rate schedule in a general rate case into effect as provided by this subdivision until at least four months after it has made a final determination concerning any previously filed change of the rate schedule or the change has otherwise become effective under subdivision 2, unless:
(1) the commission finds that a four-month delay would unreasonably burden the company, its customers, or its shareholders and that an earlier imposition of interim rates is therefore necessary; or
(2) the company files a second general rate case at least 12 months after it has filed a previous general rate case for which the commission has extended the suspension period under subdivision 2.
Subd. 4.
Burden of proof.
The burden of proof to show that the rate change is just and reasonable shall be upon the telephone company seeking the change.
Subd. 5.
Determination after finding rate unacceptable.
If, after the hearing, the commission finds the rates to be unjust or unreasonable or discriminatory, the commission shall determine the rates to be charged or applied by the telephone company for the service in question and shall fix them by order to be served upon the telephone company. The rates shall thereafter be observed until changed, as provided by this chapter. In no event shall the rates exceed the level of rates requested by the telephone company, except that individual rates may be adjusted upward or downward. Rate design changes shall be prospective from the effective date of the new rate schedules approved by the commission.
Subd. 6.
Factors considered, generally.
The commission, in the exercise of its powers under this chapter to determine just and reasonable rates for telephone companies, shall give due consideration to the public need for adequate, efficient, and reasonable service and to the need of the telephone company for revenue sufficient to enable it to meet the cost of furnishing the service, including adequate provision for depreciation of its telephone company property used and useful in rendering service to the public, and to earn a fair and reasonable return upon the investment in the property. In determining the rate base upon which the telephone company is to be allowed to earn a fair rate of return, the commission shall give due consideration to evidence of the cost of the property when first devoted to public use, to prudent acquisition cost to the telephone company, less appropriate depreciation on each, to construction work in progress, to offsets in the nature of capital provided by sources other than the investors, and to other expenses of a capital nature. To the extent that construction work in progress is included in the rate base, the income used in determining the actual return on the telephone company property may include an allowance for funds used during construction. For purposes of determining rate base, the commission shall consider the original cost of telephone company property included in the base and shall make no allowance for its estimated current replacement value.
Subd. 7.
Advertising.
The commission shall not make an allowance for operating expenses incurred by a telephone company for institutional advertising.
Subd. 8.
Charitable contribution.
The commission shall allow as operating expenses only 50 percent of the qualified charitable contributions which the commission deems prudent for the use of any community chest, corporation, trust, fund, association, foundation, or organization, and only as long as the use is exclusively for religious, charitable, public cemetery, scientific, literary, artistic, or educational purposes or for the prevention of cruelty to children or animals. No part of a charitable contribution may inure to the benefit of any private stockholder or individual.
Subd. 9.
Election on regulation; cooperative, municipal, independent.
For the purposes of this section, "telephone company" shall not include a cooperative telephone association organized under the provisions of chapter 308A, an independent telephone company, or a municipal, unless the cooperative telephone association, independent telephone company, or municipal makes the election provided in this subdivision.
A cooperative telephone association may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by the board of directors of the association in accordance with the procedures for amending the articles of incorporation contained in section 308A.135, excluding the filing requirements; or (2) approved by a majority of members or stockholders voting by mail ballot initiated by petition of no fewer than five percent of the members or stockholders of the association. The ballot to be used for the election shall be approved by the board of directors and the department. The department shall mail the ballots to the association's members who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the board of directors. On this date, representatives of the department and the association shall count the ballots. If a majority of the association's members who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section, the term "member or stockholder" shall mean either the member or stockholder of record or the spouse of the member or stockholder unless the association has been notified otherwise in writing.
A municipal may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by resolution of the governing body of the municipality; or (2) approved by a majority of the customers of the municipal voting by mail ballot initiated by petition of no fewer than 20 percent of the customers of the municipal. The ballot to be used for the election shall be approved by the governing body of the municipality and the department. The department shall mail the ballots to the municipal's customers who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the governing body of the municipality. On this date, representatives of the department and the municipal shall count the ballots. If a majority of the customers of the municipal who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section, the term "customer" shall mean either the person in whose name the telephone service is registered or the spouse of the person unless the municipal utility has been notified otherwise in writing.
An independent telephone company may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by the board of directors of the company in accordance with the procedures for amending the articles of incorporation contained in sections 302A.133 to 302A.139, excluding the filing requirements; or (2) approved by a majority of subscribers voting by mail ballot initiated by petition of no fewer than five percent of the subscribers of the company. The ballot to be used for the election shall be approved by the board of directors and the department. The department shall mail the ballots to the company's subscribers who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the board of directors. On this date, representatives of the department and the company shall count the ballots. If a majority of the company's subscribers who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section the term "subscriber" shall mean either the person in whose name the telephone service is registered or the spouse of the person unless the independent telephone company has been notified otherwise in writing.
Subd. 10.
Intervenor reimbursement.
The commission may order a telephone company to pay all or a portion of a party's intervention costs not to exceed $20,000 per intervention in any general rate case when the commission finds that the intervenor has materially assisted the commission's deliberation and the intervenor has insufficient financial resources to afford the costs of intervention. No entity which provides telephone services of any kind is eligible for reimbursement of intervention costs under this subdivision.
Subd. 11.
Recovery of expenses of segregating billing charges.
The public utilities commission shall allow each telephone company and independent telephone company subject to the requirements of section 325F.692 to automatically adjust tariffs or rates paid by information service providers to reflect the reasonable cost to the company to comply with section 325F.692.
237.14 RATE FOR SERVICE TO OFFICER.
A telephone company may furnish service free or at reduced rates to its officers, agents, or employees in furtherance of their employment, but it shall charge full schedule rates without discrimination for all other services.
237.15 INVESTIGATION AND HEARING; AUTHORITY DELEGATED.
The department shall whenever it deems the same necessary determine the value of all the property of any telephone company devoted to the public use, and in so doing it shall, after notice to the telephone company, hold such public hearing as will give all interested parties a chance to furnish evidence and be heard. For the purpose of this chapter the department is authorized to appoint engineers, examiners, experts, clerks, accountants, and other assistants as it may deem necessary at such rates of compensation as it may prescribe.
In the discharge of their duties such appointees shall have every power, of any inquisitorial nature granted in this chapter to the department. The department may conduct any number of investigations contemporaneously through its individual members or appointees, and may delegate to its individual members and employees the taking of all testimony on any investigation or hearing.
237.16 LOCAL EXCHANGE COMPETITION, RULES.
Subd. 9.
Universal service fund.
The commission shall establish and require contributions to a universal service fund, to be supported by all providers of telephone services, whether or not they are telephone companies under section 237.01, including, but not limited to, local telephone companies, independent telephone companies, cooperative telephone companies, municipal telephone companies, telecommunications carriers, radio common carriers, personal communication service providers, and cellular carriers. Services that should be considered for inclusion as universal include, at a minimum, single-party service including access, usage and touch-tone capability; line quality capable of carrying facsimile and data transmissions; equal access; emergency services number capability; statewide telecommunications relay service for people with hearing loss; and blocking of long-distance toll services. The fund must be administered and distributed in accordance with rules adopted by the commission and designed to preserve the availability of universal service throughout the state. Any state universal service fund must be coordinated with any federal universal service fund and be consistent with section 254(b)(1) to (5) of the federal Telecommunications Act of 1996, Public Law 104-104.
237.22 DEPRECIATION; AMORTIZATION.
(a) For purposes of a proceeding to determine or investigate any wholesale or retail rate, or to set any universal service support level, the commission may fix proper and adequate rates and methods of depreciation and amortization with respect to a telephone company's property.
(b) All telephone companies shall retain data in sufficient detail for the purpose of determining depreciation accruals and reserves by depreciable telephone plant account. Depreciable plant accounts are those specified by the Federal Communications Commission for the class to which a telephone company belongs. All telephone companies shall maintain, and have available for inspection by the commission upon request, adequate accounts and records related to depreciation practices as defined herein.
237.231 SALE OF LOCAL EXCHANGE SERVICE.
Subdivision 1.
Commission approval.
A Class A telephone company may not sell a local exchange service territory without receiving the prior consent of the commission. For the purposes of this section, a Class A telephone company is a telephone company which has annual revenues from regulated telecommunication operations of $100,000,000 or more, as defined by the Federal Communications Commission in Code of Federal Regulations, title 47, section 32.11, paragraphs (a)(1) and (e).
Subd. 2.
Notice of intended sale.
At least 90 days prior to applying to the commission for consent to a proposed sale or acquisition of a local exchange service, the selling telephone company must provide notice to its customers in that local exchange of its intent to sell and identify the affected local exchange, and the name of the proposed buyer. The notice must be on a separate document and included in the company's monthly billings to customers. The commission must approve the form of all notices.
Subd. 3.
Resident poll.
At least 60 days prior to the hearing under subdivision 4, the telephone company proposing the sale of a local exchange service must provide each of its customers with a stamped envelope addressed to the commission and must inform the customer that the customer is encouraged to comment on the quality of service that has been provided in the local exchange service territory by the telephone company over the last 12 months.
Subd. 4.
Public hearing.
At least 30 days prior to the commission's deliberations about a proposed sale or acquisition of a local exchange service territory, the commission must hold a public hearing at a location within the affected local exchange service territory allowing the public an opportunity to be heard and to present any concerns or comments.
Subd. 5.
Requirements for consent.
The commission may not give consent to a sale of a service territory unless, at a minimum, it finds all of the following:
(1) the quality of service provided by the telephone company servicing the local exchange service territory has substantially complied with all applicable quality of service standards adopted by rule by the commission for the previous calendar year;
(2) the proposed buyer is financially responsible and capable of making necessary investments to maintain quality service at levels required by rule; and
(3) the proposed buyer demonstrates that it has an adequate number of properly trained employees to maintain service at required levels.
The commission shall, as a condition of its consent, require a proposed buyer to enter into binding commitments obligating the buyer to maintain minimum levels of investment and staffing needed to meet the commission's quality of service rules. These commitments are in addition to any other conditions that the commission may impose.
237.59 CLASSIFICATION OF COMPETITIVE SERVICE; HEARING.
Subdivision 1.
Emerging competitive service.
(a) The following services provided by the telephone company are subject to emerging competition unless and until reclassified as noncompetitive or subject to effective competition under this section:
(1) apartment door answering services;
(2) automatic call distribution;
(3) billing and collection services;
(4) call waiting, call forwarding, and three-way calling services for businesses with three or more lines;
(5) central office-based pricing packages providing switched business access lines which substitute for private branch exchange systems which may or may not share intelligence with customer premises equipment;
(6) command link-type services for network reconfiguring to rearrange cross-connections between channel services;
(7) custom network services and special assemblies;
(8) Digicom switchnet services for full duplex, synchronous, information transport;
(9) direct customer access services for telephone number information;
(10) teleconferencing services;
(11) inter-LATA and intra-LATA message toll service;
(12) inter-LATA and intra-LATA private line services;
(13) inter-LATA and intra-LATA wide area telephone service;
(14) mobile radio services;
(15) operator services, excluding local operator services;
(16) public pay telephone services, excluding charges for access to the central office;
(17) special construction of facilities;
(18) systems for automatic dialing; and
(19) versanet-type service access line involving continuous monitoring and transmission of data from customer's premises to the central office.
(b) A service classified as subject to emerging competition before June 1, 1994, retains that classification unless and until it is reclassified pursuant to subdivision 3 or 10.
Subd. 1a.
CLASS service.
Notwithstanding the terms of subdivision 1, paragraph (b), CLASS services may be classified as competitive services only when so classified according to subdivision 3 or 10.
Subd. 2.
Petition.
(a) A telephone company, or the commission on its own motion, may petition to have a service of that telephone company classified as subject to effective competition or emerging competition. The petition must be served on the commission, the department, the Office of the Attorney General, and any other person designated by the commission. The petition must contain at least:
(1) a list of the known alternative providers of the service available to the company's customers; and
(2) a description of affiliate relationships with any other provider of the service in the company's market.
(b) At the time the company first offers a service, it shall also file a petition with the commission for a determination as to how the service should be classified. In the event that no interested party or the commission objects to the company's proposed classification within 20 days of the filing of the petition, the company's proposed classification of the service is deemed approved. If an objection is filed, the commission shall determine the appropriate classification after a hearing conducted pursuant to section 237.61. In either event, the company may offer the new service to its customers ten days after the company files the price list and incremental cost study as provided in Minnesota Rules, parts 7811.2210 and 7812.2210.
(c) A new service may be classified as subject to effective competition or emerging competition pursuant to the criteria set forth in subdivision 5. A new service must be regulated under the emerging competition provisions if it is not integrally related to the provision of adequate local service or access to the telephone network or to the privacy, health, or safety of the company's customers, whether or not it meets the criteria set forth in subdivision 5.
Subd. 3.
Expedited proceeding.
An interested party wishing to contest the change of classification of a service must file an objection with the commission within 20 days after the filing of the petition. If no party files an objection, the service must be reclassified in accordance with the petition. If a petition is contested, a telephone company that is the subject of a petition under subdivision 2 may request that the commission determine the classification of the service through an expedited proceeding under section 237.61 or a contested case hearing. If an expedited proceeding is requested, the commission must provide interested persons an opportunity to comment on the appropriateness of the process and the merits of the petition.
When an expedited proceeding is requested, the commission shall make a final determination within 60 days of the date on which all required information required under subdivision 2 is filed, unless during the 60 days the commission finds that a material issue of fact is in dispute, in which case it shall order that a contested case hearing be conducted to evaluate the petition.
Subd. 4.
Contested case hearing.
If a contested case hearing is held under this section, the commission shall make a final determination on the petition within eight months from the date the petitioning party requests a contested case hearing or from the date the commission orders a contested case hearing under subdivision 3. When a contested case hearing is requested in the petition or when the commission acts on its own motion, this deadline may be extended for no more than 60 days by agreement of all parties or by order of the commission if the commission finds that the case cannot be completed within the required time and that without an extension there is substantial probability that the public interest will be harmed.
Subd. 5.
Criteria.
(a) If a proposed classification is objected to pursuant to subdivision 2, paragraph (b), on the basis that the service does not meet the criteria of this subdivision, the commission shall consider, in determining whether a service is subject to either effective competition or emerging competition from available alternative service providers, the following factors:
(1) the number and sizes of alternative providers of service and affiliation to other providers;
(2) the extent to which services are available from alternative providers in the relevant market;
(3) the ability of alternative providers to make functionally equivalent or substitute services readily available at competitive rates, terms, and conditions of service;
(4) the market share, the ability of the market to hold prices close to cost, and other economic measures of market power; and
(5) the necessity of the service to the well-being of the customer.
(b) In order for the commission to find a service subject to effective competition alternative services must be available to over 50 percent of the company's customers for that service.
(c) In order for the commission to find a service subject to emerging competition alternative services must be available to over 20 percent of the company's customers for that service.
Subd. 6.
Burden of proof.
The classification of a service may not be changed so as to result in lessened regulation unless it is demonstrated by a preponderance of the evidence that the criteria of subdivision 5 have been met.
Subd. 8.
Interim relief.
A telephone company that has a petition pending before the commission under this section to declare a service competitive may decrease its price for that service without notice while the commission considers the petition. A company must provide an incremental cost study if requested by the commission. The commission shall suspend a company's right under this subdivision to decrease rates if, after an expedited hearing conducted under section 237.61, the commission finds that the service is being priced below cost, or that the company has within the previous 12 months charged customers interim rates under this subdivision for the same service, and that service was determined by the commission to be noncompetitive.
Subd. 9.
Reporting requirements; exception.
A telephone company that offers only competitive services is not subject to the accounting and reporting requirements of this chapter unless otherwise ordered by the commission for good cause. A telephone company that offers both competitive and noncompetitive services is not subject to the reporting requirements with regard to its effective competition services unless otherwise ordered by the commission for good cause.
Subd. 10.
Regulation reinstated.
(a) The commission, on its own motion or upon complaint, shall reclassify a service as noncompetitive or as subject to emerging competition and reinstate, in whole or in part, rate regulation of the service if, after notice and hearing, the commission finds either:
(1) that the competitive market for that service, on review of the criteria found in subdivision 5, has failed so that rate regulation of that service is necessary to protect the interest of consumers, that it has considered the alternatives to rate regulation, and that the benefits of rate regulation outweigh the burdens of rate regulation; or
(2) that unreasonable discrimination has occurred between different areas of the state.
(b) In any proceeding to reclassify a service the person initiating the complaint has the burden of proving that the existing classification is inappropriate, except the telephone company providing the service has the burden of proving that the classification is appropriate when the proceeding is commenced by the commission on its own motion or when the complainant is the department or the attorney general.
237.66 DISCLOSURE OF LOCAL SERVICE OPTIONS.
Subdivision 1.
Notice to local residential customers.
A telephone company, when a residential customer initially requests service or requests a change of service, and annually in the form of a bill insert, shall advise each residential customer of the price of all service options available to that customer. The requirement of an annual notice through a bill insert does not apply to long-distance service.
Subd. 1a.
Notice to customer; right to require prior authorization.
Each residential and commercial telecommunications carrier customer may elect to require that the telephone company serving the customer receive authorization from the customer before a request to serve that customer from a different intrastate telecommunications carrier than the carrier currently serving the customer is processed.
Subd. 1c.
Timing of notice; new customer.
For new installations, a telephone company shall notify a residential or commercial customer of the right described in subdivision 1a when the customer initially requests intraexchange service. Any customer notification of the rights set forth in this section shall be provided utilizing uniform, competitively neutral language and the form, content, and style of the authorization shall be consistent with federal law and regulation and shall use language provided and approved by the public utilities commission.
Subd. 1d.
Change of election.
A customer may change the election under subdivision 1a at any time by notifying the telephone company of that decision. No separate charge may be imposed on the customer for electing to exercise the right described in subdivision 1a or to change that election, but a telephone company may recover in rates the reasonable costs of administering the election.
Subd. 2.
Filing; exemptions.
Copies of both the written notices and information provided to customer service representatives concerning the disclosure required under subdivision 1 must be filed once every 12 months with the commission and the department. Independent telephone companies, municipalities, and cooperative telephone associations are exempt from the requirements of this subdivision unless otherwise ordered by the commission.
Subd. 2a.
Call blocking.
A telephone company, when a residential customer initially requests service, shall advise each residential customer of the availability of all blocking options including 900 number blocking and international long-distance blocking.
Subd. 3.
Enforcement.
If, after an expedited procedure conducted under section 237.61, the commission finds that a telephone company is failing to provide disclosure as required under subdivision 1, or the notification required under subdivision 1c, it shall order the company to take corrective action as necessary.
237.75 CLASS SERVICE.
Subdivision 1.
Definition.
For purposes of this section, "CLASS" or "custom local area signaling service" means a custom calling telephone service that is enabled through the installation or use of Signaling System 7 or similar signaling system and that includes at least the following features:
(1) automatic call back;
(2) automatic recall;
(3) calling number delivery, commonly known as "caller identification";
(4) calling number delivery blocking;
(5) customer originated call tracing;
(6) distinctive ringing/call waiting;
(7) selective call acceptance;
(8) selective call forwarding; and
(9) selective call rejection.
Subd. 2.
CLASS; terms and conditions.
By January 1, 1994, the commission shall determine the terms and conditions under which CLASS services may be provided by telephone companies in this state.
Subd. 3.
CLASS; capability and offering of service.
Each telephone company that provides local telephone service to persons located in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington shall obtain the capability to offer CLASS services in those counties by January 1, 1995, unless the commission approves an extension to a date certain.
237.766 PLAN DURATION AND EXTENSION.
Subdivision 1.
Plan duration.
An alternative regulation plan approved by the commission under section 237.764 must remain in force as approved for the term specified in the plan, which must be for no less than three years. Except as otherwise provided in this section, within six months prior to the termination of the plan the company shall give notice that it will propose a new plan, extend an existing plan, or revert to rate of return regulation.
Subd. 2.
New plan.
A new plan proposed by a company must be reviewed by the commission and, with the consent of the company, revised or approved consistent with sections 237.76 to 237.774, except that the justification of earnings levels in section 237.764, subdivision 1, paragraph (c), if required, and the provisions prohibiting rate increases at the initiation of or during the first three years of a plan contained in section 237.762, shall not apply to a new plan. Any new plan must be approved by the commission and shall contain a mechanism under which a telephone company may reduce the rates for price-regulated services below the initial rates or prices or increase the rates or prices during the term of the plan. The plan must specify the reports required of the telephone company for review of the plan and specify that the telephone company shall maintain records in sufficient detail to facilitate the review. A new plan is not an extension, which must be made pursuant to subdivision 3.
Subd. 3.
Plan extension.
(a) Notwithstanding the provisions of its plan, a telephone company operating under a plan as of May 20, 2004, may elect to extend that plan for up to three years from the expiration date of the plan or until December 31, 2007, whichever is earlier. The election is effective upon notification to customers, the commission, the department, and the Office of the Attorney General. A telephone company must provide notification of its election within 30 days of May 20, 2004, or within six months of the expiration of its current or expired plan, whichever is later. Once a telephone company has elected to exercise the option provided under this subdivision, the company may elect at any time to terminate the plan by notifying customers, the commission, the department, and the Office of the Attorney General, in writing, six months prior to the termination date. Upon termination of a plan, the company shall be regulated as provided in this chapter.
(b) A telephone company may elect to extend a plan entered into after May 20, 2004, in lieu of proposing a new plan only if the company is in substantial compliance with the plan's service quality provisions and has met its infrastructure obligations under the plan. If the company elects to extend a plan, the rates for price-regulated services shall be capped at the rate levels in effect at the time the extension commences, provided, however, exceptions to a price cap contained in the plan being extended may remain in force. Unless otherwise specified in the plan, all other provisions of the plan shall continue in effect throughout the extension period. A plan may not be extended for less than one year or more than three years, and may only be extended once.
(c) The Department of Commerce or the Office of the Attorney General may file an objection to the extension with the commission if the company is not in substantial compliance with the service quality provisions of its plan or has not met its infrastructure obligations under the plan. An objection must be filed within 45 days of the company's notice of its intention to extend the plan.
(d) If an objection is filed by the Department of Commerce or the Office of the Attorney General, the commission may hold a hearing on the issues raised in the objection. The hearings shall be completed within 30 days of the deadline for filing the objections. If the commission finds that the issues raised in the objection are valid, it may reject the extension. If the commission finds that the issues raised in the objection are not valid, it shall approve the extension. The commission shall issue its decision within 15 days of the completion of the hearings concerning the objection.
(e) If the Department of Commerce or the Office of the Attorney General does not file an objection, the commission shall approve the extension within 60 days of the company's filing of its notice of its intention to extend the plan.
Subd. 4.
Joining an existing plan.
(a) A telephone company may elect to opt into another company's plan if:
(1) the chosen plan is from a company that is larger than the electing company; or
(2) the chosen plan is from an affiliated company; and
(3) the plan is currently in effect.
(b) A telephone company electing to enter an existing plan in lieu of proposing a new plan must operate under the terms of that plan for at least three years. If the original term of the existing plan was longer than three years, then the adopting company must operate under the plan for that longer period.
(c) A telephone company that desires to adopt an existing plan must give notice to the commission at least 90 days prior to the proposed effective date of the adoption and to its customers at least 60 days prior to the proposed effective date.
(d) The Department of Commerce or the Office of the Attorney General may file an objection to a telephone company that has previously operated under a plan from electing to opt into the plan of another company if the electing company is not in substantial compliance with the service quality provisions or has not met the infrastructure obligations of its plan.
(e) If a telephone company has not previously operated under an alternative regulation plan, the rates for its price-regulated services must be capped for the first three years at the rates in effect at the time of opt in, except for any plan provisions that address exogenous changes.
(f) Within 30 days of the electing company filing notice to the commission, interested parties may file comments identifying any aspect of the adoption that the party believes is contrary to the public interest. Reply comments may be filed within 45 days following the notice to the commission. The commission shall accept the adoption unless it finds adoption of the existing plan by the electing telephone company is not in the public interest, in which case it may reject or modify the election to opt into the provisions of the existing plan. If the commission modifies the election, the electing company may withdraw its proposed adoption of the existing plan by filing notice with the commission within 30 days of the commission's modification order.
237.768 PERIODIC FINANCIAL REPORT.
In addition to the reports required under section 237.766, an alternative regulation plan may require a telephone company to file with the department an annual report of financial matters for the previous calendar year on or before May 1 of each year on report forms furnished by the department in the same manner as is required of other telephone companies on August 1, 1995. In addition, any company subject to a plan shall file with the commission and department a copy of any filings it has made to the Federal Communications Commission regarding the provisions of video programming provided through a video dial tone facility in Minnesota. An alternative regulation plan may require a telephone company to maintain its accounts in accordance with the system of accounts prescribed for the company by the commission under section 237.10.
237.772 COST STUDY METHODOLOGY.
Subdivision 1.
Total service long-run incremental cost.
(a) For purposes of this chapter, total service long-run incremental cost (TSLRIC) means the total cost to the company of supplying a service, group of services, or basic network function. The term "long-run" means a period of time sufficient so that all inputs are avoidable based on the total increment of service, group of services, or basic network function and includes the relevant costs resulting from the company's decision to provide the service, group of services, or basic network function, holding constant the production levels of all other services, groups of services, or basic network functions provided by the company.
(b) A telephone company is not required to prepare or file TSLRIC or variable cost studies for all of its services as a prerequisite to filing a plan. However, the commission may order cost studies to be prepared for specific services as a condition of approval of the plan.
Subd. 2.
Petition for variable cost study.
To the extent that this section or the commission may require a company to provide a TSLRIC study, a company may submit a petition to the commission for permission to submit a variable cost study instead of a TSLRIC study. The commission shall grant the petition if the telephone company demonstrates:
(1) that a TSLRIC study is burdensome in relation to its annual revenue from the service involved;
(2) in the case of an existing service, that the service is no longer being offered to new customers; or
(3) if the telephone company shows other good cause.
237.775 EXISTING PLAN NOT AFFECTED.
An alternative regulation plan approved by the commission prior to May 1, 1997, is not subject to the amendments in Laws 1997, chapter 223; provided that a plan filed, revised, or renewed after that date is subject to those amendments.
332A.02 DEFINITIONS.
Subd. 2.
Accreditation.
"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.
332B.02 DEFINITIONS.
Subd. 2.
Accreditation.
"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.