HF 2228

as introduced - 94th Legislature (2025 - 2026) Posted on 03/17/2025 06:41pm

A bill for an act
relating to commerce; establishing a task force on homeowners and commercial
property insurance; appropriating money; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY
INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A task force is established to evaluate issues and provide
recommendations relating to insurance affordability with respect to single-family housing,
multifamily rental housing, common interest communities, cooperatives, and small
businesses, and preventing disruptions or loss to the development, preservation, and long-term
sustainability of Minnesota's housing infrastructure and small businesses.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following:
new text end

new text begin (1) one member appointed by the Department of Commerce;
new text end

new text begin (2) one member from the house of representatives majority party;
new text end

new text begin (3) one member from the house of representatives minority party;
new text end

new text begin (4) one member from the senate majority party;
new text end

new text begin (5) one member from the senate minority party;
new text end

new text begin (6) one member appointed by the Minnesota Consortium of Community Developers;
new text end

new text begin (7) one representative appointed by the Insurance Federation of Minnesota;
new text end

new text begin (8) one representative appointed by Big I Minnesota;
new text end

new text begin (9) one representative appointed by the Minnesota Realtors;
new text end

new text begin (10) one member appointed by the Minnesota Community Development Financial
Institutions Coalition;
new text end

new text begin (11) one member appointed by the Minnesota Homeownership Center;
new text end

new text begin (12) one member appointed by the Housing Justice Center; and
new text end

new text begin (13) one member with climate science expertise.
new text end

new text begin (b) The appointing authorities must make the appointments by July 15, 2025.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The task force must identify recommendations to strengthen and
stabilize the homeowners and commercial property insurance industry.
new text end

new text begin (b) The task force must consult with members from Minnesota Housing, the Department
of Employment and Economic Development, and key stakeholders.
new text end

new text begin (c) The task force must review:
new text end

new text begin (1) risk mitigation methodologies;
new text end

new text begin (2) liability laws impacting insurance costs;
new text end

new text begin (3) minimum notice for coverage changes, including enforcement and oversight;
new text end

new text begin (4) public reporting of aggregated data relating to insurance plan costs and coverage;
new text end

new text begin (5) the reinsurance market for homeowners and commercial property insurance;
new text end

new text begin (6) the current state-supported insurance program and the potential to expand the program
to include a catastrophic reinsurance fund and a self-insured pool;
new text end

new text begin (7) factors that increase claim costs, including but not limited to post-loss contractors,
fraudulent claims, climate, inflation, and discontinued building materials; and
new text end

new text begin (8) other areas that would strengthen and stabilize the homeowners and commercial
property insurance industry.
new text end

new text begin Subd. 4. new text end

new text begin Meetings. new text end

new text begin (a) The Legislative Coordinating Commission must ensure the first
meeting of the task force convenes no later than August 15, 2025, and must provide accessible
physical or virtual meeting space as necessary for the task force to conduct work.
new text end

new text begin (b) At the first meeting, the task force must elect a chair or cochairs by a majority vote
of those members present and may elect a vice-chair as necessary.
new text end

new text begin (c) The task force must establish a schedule for meetings and must meet as necessary
to accomplish the duties under subdivision 3.
new text end

new text begin (d) The task force is subject to Minnesota Statutes, chapter 13D.
new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin (a) The task force must submit a report to the commissioners
of the Department of Commerce, Minnesota Housing, and the Department of Employment
and Economic Development, and the chairs and ranking minority members of the legislative
committees having jurisdiction over the agencies listed in this paragraph by February 15,
2026.
new text end

new text begin (b) The report must:
new text end

new text begin (1) summarize the activities of the task force;
new text end

new text begin (2) provide findings and recommendations adopted by the task force;
new text end

new text begin (3) list recommended administrative changes to the relevant agencies;
new text end

new text begin (4) include draft legislation to implement nonadministrative recommendations; and
new text end

new text begin (5) include other information the task force believes is necessary to report.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the final
recommendations required under subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin APPROPRIATION; TASK FORCE ON HOMEOWNERS AND
COMMERCIAL PROPERTY INSURANCE.
new text end

new text begin $200,000 in fiscal year 2025 is appropriated from the general fund to the Legislative
Coordinating Commission to facilitate and administrate the costs of the task force on
homeowners and commercial property insurance. This is a onetime appropriation and is
available until June 30, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end