Minnesota Legislature
HF 3607
1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/21/2022 01:42pm
1.32 1.33
1.34 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15
2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 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 4.32
4.33 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 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11
6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26
6.27 6.28 6.29 6.30 6.31 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 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 9.1 9.2
9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19
9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29
10.30 10.31 10.32 10.33 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 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
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 14.31 14.32 14.33 14.34 14.35 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 15.32 15.33 15.34 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
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21
17.22 17.23 17.24 17.25 17.26 17.27 17.28
17.29 17.30 17.31 17.32 18.1 18.2 18.3 18.4 18.5 18.6 18.7
18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15
18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28
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 20.1 20.2 20.3 20.4 20.5
20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26
21.27 21.28 21.29 21.30 21.31
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 22.31 22.32 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 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 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 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 26.32
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 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 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 32.1 32.2 32.3 32.4 32.5
32.6
32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 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
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 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 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 38.32 38.33 38.34 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35
40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 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 41.31 41.32 41.33 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 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 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
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
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 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 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 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 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 55.33 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
57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9
57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2
58.3 58.4 58.5 58.6 58.7 58.8 58.9
58.10 58.11
58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 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
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 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
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 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 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 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 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 67.31 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10
68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 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 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17
72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26
74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19
75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27
75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11
76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32
78.1 78.2 78.3 78.4
78.5 78.6
78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14
79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 81.1 81.2 81.3 81.4 81.5 81.6
81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23
81.24 81.25
81.26 81.27 81.28 81.29 81.30 81.31 82.1 82.2
82.3 82.4
82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 83.1 83.2 83.3 83.4 83.5 83.6
83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32
83.33
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
A bill for an act
relating to commerce; establishing a supplemental budget for commerce activities;
modifying and adding provisions governing commerce, licensee continuing
education, financial institutions, weights and measures, insurance, and consumer
protection; modifying civil procedures; requiring reports; making technical changes;
appropriating and transferring money; amending Minnesota Statutes 2020, sections
45.0135, subdivisions 2a, 2b; 45.25, subdivisions 12, 13, by adding subdivisions;
45.31, subdivisions 2, 3; 46.131, subdivisions 2, 4, 11; 47.08; 47.16, subdivisions
1, 2; 47.172, subdivision 2; 47.28, subdivision 3; 47.30, subdivision 5; 48A.15,
subdivision 1; 53.03, subdivisions 1, 5; 53C.02; 55.10, subdivision 1; 56.02;
60A.033, subdivisions 8, 9, by adding subdivisions; 60A.952, subdivision 2;
60A.953; 60A.954, subdivision 1; 61A.02, by adding a subdivision; 62Q.733,
subdivision 1; 62Q.735, subdivisions 1, 5; 62Q.76, by adding a subdivision; 62Q.78,
by adding a subdivision; 62Q.79, by adding a subdivision; 65B.84, subdivisions
1, 2; 72A.20, by adding a subdivision; 72A.2031, subdivisions 8, 10, by adding
subdivisions; 72A.2032, subdivisions 4, 6, 7, 8, by adding subdivisions; 72A.2033;
72A.2034; 72A.2035, subdivision 1; 72A.2036; 80A.61; 80C.05, subdivision 2;
80C.08, subdivision 1; 80G.01, subdivision 3, by adding a subdivision; 80G.02,
subdivisions 1, 4; 80G.03, subdivision 2; 80G.04, subdivision 1; 80G.05,
subdivision 1; 80G.06, subdivision 2; 80G.07, subdivision 1; 82B.03, by adding
a subdivision; 82B.19, by adding a subdivision; 82C.17, subdivision 2; 239.761,
subdivisions 3, 4; 239.791, subdivision 2a; 296A.01, subdivision 23; 325E.21, by
adding subdivisions; 332.33, subdivision 3, by adding a subdivision; 336.9-510;
336.9-516; 515B.3-102; 549.30, subdivisions 3, 6, 15, 19, by adding subdivisions;
549.31; 549.32; 549.34; 609.5316, subdivision 3; Minnesota Statutes 2021
Supplement, sections 62J.26, subdivision 2; 80G.06, subdivision 1; 80G.11; 82B.25,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 45;
58B; 62Q; 214; 325F; 332; 336; 549; repealing Minnesota Statutes 2020, sections
45.25, subdivisions 2a, 14; 60A.033, subdivision 3; 62Q.56, subdivision 1a;
72A.2031, subdivisions 3, 9, 11; 72A.2032, subdivisions 1, 2, 3, 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
SUPPLEMENTAL APPROPRIATIONS
Section 1. new text begin APPROPRIATIONS.
|
new text begin
The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium"
is fiscal years 2022 and 2023. If an appropriation in this act is enacted more than once in
the 2022 legislative session, the appropriation must be given effect only once. Appropriations
for the fiscal year ending June 30, 2022, are effective the day following final enactment.
The appropriations made under this article supplement, and do not supersede or replace,
the appropriations made under Laws 2021, First Special Session chapter 4, article 1.
new text end
|
new text begin
APPROPRIATIONS new text end |
||||||
|
new text begin
Available for the Year new text end |
||||||
|
new text begin
Ending June 30 new text end |
||||||
|
new text begin
2022 new text end |
new text begin
2023 new text end |
|||||
Sec. 2. new text begin DEPARTMENT OF COMMERCE
|
||||||
new text begin Subdivision 1. new text end
new text begin
Total Appropriation
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
6,153,000 new text end |
||
|
new text begin
Appropriations by Fund new text end |
||
|
new text begin
2022 new text end |
new text begin
2023 new text end |
|
|
new text begin
General new text end |
new text begin
-0- new text end |
new text begin
5,653,000 new text end |
|
new text begin
Special Revenue new text end |
new text begin
-0- new text end |
new text begin
500,000 new text end |
new text begin
The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end
new text begin Subd. 2. new text end
new text begin
Administrative Services
|
new text begin
-0- new text end |
new text begin
392,000 new text end |
||||
new text begin
$301,000 in fiscal year 2023 is for the senior
fraud prevention program.
new text end
new text begin
$91,000 in fiscal year 2023 is for the licensing
disqualification and preliminary application
requirements under article 2, section 52.
new text end
new text begin Subd. 3. new text end
new text begin
Financial Services
|
new text begin
-0- new text end |
new text begin
533,000 new text end |
||||
new text begin
$300,000 in fiscal year 2023 is for additional
securities staff.
new text end
new text begin
$233,000 in fiscal year 2023 is to establish
and operate a student loan advocate under
Minnesota Statutes, section 58B.011. The base
for this appropriation is $233,000 in fiscal year
2024 and $233,000 in fiscal year 2025.
new text end
new text begin Subd. 4. new text end
new text begin
Insurance
|
new text begin
-0- new text end |
new text begin
633,000 new text end |
||||
new text begin
$108,000 in fiscal year 2023 is for a study and
report on disparities in geographic rating areas
in individual and small group market health
insurance under article 3, section 34. This is
a onetime appropriation.
new text end
new text begin
$525,000 in fiscal year 2023 is for additional
staff in the insurance division. The additional
staff must focus on property- and
casualty-related insurance products.
new text end
new text begin Subd. 5. new text end
new text begin
Enforcement
|
new text begin
-0- new text end |
new text begin
4,595,000 new text end |
||||
new text begin
$4,095,000 in fiscal year 2023 is for the
automobile theft prevention program under
Minnesota Statutes, section 65B.84. This is a
onetime appropriation.
new text end
new text begin
$500,000 in fiscal year 2023 is appropriated
from the auto theft prevention account in the
special revenue fund to the commissioner of
commerce to reimburse law enforcement
agencies for investigation and enforcement
activities to combat automobile theft. This
appropriation does not cancel and remains
available until expended. This is a onetime
appropriation.
new text end
Sec. 3. new text begin BOARD OF ACCOUNTANCY
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
6,000 new text end |
||
new text begin
new text begin Licensing Disqualifications; Preliminary
Applications.
new text end
new text end
new text begin
$6,000 in fiscal year 2023 is to the Board of
Accountancy for the licensing disqualification
and preliminary application requirements
under article 2, section 52. This is a onetime
appropriation.
new text end
Sec. 4. new text begin ATTORNEY GENERAL
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
27,000 new text end |
||
new text begin
new text begin Licensing Disqualifications; Preliminary
Applications.
new text end
new text end
new text begin
$27,000 in fiscal year 2023 is to the attorney
general for the licensing disqualification and
preliminary application requirements under
article 2, section 52.
new text end
Sec. 5. new text begin PROFESSIONAL EDUCATOR
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
514,000 new text end |
||
new text begin
new text begin Licensing Disqualifications; Preliminary
Applications.
new text end
new text end
new text begin
$514,000 in fiscal year 2023 is to the
Professional Educator Licensing and Standards
Board for the licensing disqualification and
preliminary application requirements under
article 2, section 52. The base for this
appropriation is $142,000 in fiscal year 2024
and $142,000 in fiscal year 2025.
new text end
Sec. 6. new text begin DEPARTMENT OF REVENUE
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
19,000 new text end |
||
new text begin
new text begin Licensing Disqualifications; Preliminary
Applications.
new text end
new text end
new text begin
$19,000 in fiscal year 2023 is to the
Department of Revenue for the licensing
disqualification and preliminary application
requirements under article 2, section 52. The
base for this appropriation is $3,000 in fiscal
year 2024 and $3,000 in fiscal year 2025.
new text end
Sec. 7. new text begin GAMBLING CONTROL BOARD
|
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$ new text end |
new text begin
3,000 new text end |
||
new text begin
new text begin Licensing Disqualifications; Preliminary
Applications.
new text end
new text end
new text begin
$3,000 in fiscal year 2023 is from the lawful
gambling regulation account in the special
revenue fund to the Gambling Control Board
for the licensing disqualification and
preliminary application requirements under
article 2, section 52.
new text end
Sec. 8. new text begin COMMERCE FRAUD BUREAU; TRANSFER.
new text end
new text begin
$870,000 in fiscal year 2023 is transferred from the general fund to the insurance fraud
prevention account for five additional peace officers in the Commerce Fraud Bureau. The
base for this transfer is $811,000 in fiscal year 2024 and $811,000 in fiscal year 2025.
new text end
ARTICLE 2
COMMERCE POLICY
Section 1.
Minnesota Statutes 2020, section 45.0135, subdivision 2a, is amended to read:
Subd. 2a.
Authorization.
new text begin (a) new text end The commissioner may appoint peace officers, as defined
in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as
defined in section 626.84, subdivision 1, paragraph (f), known as the Commerce Fraud
Bureau, to conduct investigations, and to make arrests under sections 629.30 and 629.34.
Thenew text begin primarynew text end jurisdiction of the law enforcement agency is limited to offenses deleted text begin related to
insurance frauddeleted text end new text begin with a nexus to insurance-related crimes or financial crimesnew text end .
new text begin
(b) Upon request and at the commissioner's discretion, the Commerce Fraud Bureau
may respond to a law enforcement agency's request to exercise law enforcement duties in
cooperation with the law enforcement agency that has jurisdiction over the particular matter.
new text end
new text begin
(c) The Commerce Fraud Bureau must allocate at least 70 percent of its work to
insurance-related crimes.
new text end
Sec. 2.
Minnesota Statutes 2020, section 45.0135, subdivision 2b, is amended to read:
Subd. 2b.
Duties.
The Commerce Fraud Bureau shall:
(1) review notices and reports deleted text begin of insurance frauddeleted text end new text begin within the Commerce Fraud Bureau's
primary jurisdictionnew text end submitted by authorized insurers, their employees, and agents or
producers;
(2) respond to notifications or complaints deleted text begin of suspected insurance frauddeleted text end new text begin within the
Commerce Fraud Bureau's primary jurisdictionnew text end generated by other law enforcement agencies,
state or federal governmental units, or any other person;
(3) initiate inquiries and conduct investigations when the bureau has reason to believe
that deleted text begin insurance frauddeleted text end new text begin an offense within the Commerce Fraud Bureau's primary jurisdictionnew text end
has been or is being committed; and
(4) report deleted text begin incidents of alleged insurance frauddeleted text end new text begin crimesnew text end disclosed by deleted text begin itsdeleted text end new text begin the Commerce
Fraud Bureau'snew text end investigations to appropriate law enforcement agencies, including, but not
limited to, the attorney general, county attorneys, or any other appropriate law enforcement
or regulatory agency, and shall assemble evidence, prepare charges, and otherwise assist
any law enforcement authority having jurisdiction.
Sec. 3.
Minnesota Statutes 2020, section 45.25, is amended by adding a subdivision to
read:
new text begin Subd. 9a. new text end
new text begin Live course. new text end
new text begin
"Live course" means any learning experience that is actively led
by an instructor, either online or in a classroom setting, that offers person-to-person, real-time
feedback. A live course offered online must:
new text end
new text begin
(1) specify the minimum system requirements;
new text end
new text begin
(2) provide encryption that ensures that all personal information, including the student's
name, address, and credit card number, cannot be read as it passes across the Internet;
new text end
new text begin
(3) include technology to guarantee seat time;
new text end
new text begin
(4) include the ability for the student to get technical support within a reasonable amount
of time;
new text end
new text begin
(5) include a statement that the student's information will not be sold or distributed to
any third party without the prior written consent of the student. Taking the course does not
constitute consent; and
new text end
new text begin
(6) include a process to authenticate the student's identity.
new text end
Sec. 4.
Minnesota Statutes 2020, section 45.25, is amended by adding a subdivision to
read:
new text begin Subd. 9b. new text end
new text begin On-demand course. new text end
new text begin
"On-demand course" means an online learning experience
that enables a student to review learning material at a time and location that is convenient
for the student. On-demand course includes but is not limited to asynchronous online courses,
text-based courses, and other courses not offered live that include prerecorded videos, class
recordings, documents, or other learning activities.
new text end
Sec. 5.
Minnesota Statutes 2020, section 45.25, subdivision 12, is amended to read:
Subd. 12.
Proctor.
new text begin (a) new text end "Proctor" means a deleted text begin disinterested third party with no conflict of
interestdeleted text end new text begin personnew text end who new text begin (1) new text end verifies a student's identitynew text begin ,new text end and new text begin (2) new text end processes an affidavit testifying
that the student received no outside assistance with the course or examination.
new text begin
(b) A proctor must be 18 years of age or older. A proctor must not have a financial or
other conflict of interest with respect to a student's successful completion of the course or
the examination. A proctor must not be:
new text end
new text begin
(1) a relative of the student;
new text end
new text begin
(2) the student's supervisor at work;
new text end
new text begin
(3) a person the student supervises at work; or
new text end
new text begin
(4) a student who is completing the same course.
new text end
Sec. 6.
Minnesota Statutes 2020, section 45.25, subdivision 13, is amended to read:
Subd. 13.
Professional designation.
"Professional designation" means deleted text begin a written,
proctored, and graded examination, the passage of which leads to a bona fidedeleted text end new text begin an
industry-recognizednew text end professional designation used by deleted text begin licenseesdeleted text end new text begin a licensee after completing
a series of courses and passing a graded, proctored examinationnew text end .
Sec. 7.
new text begin
[45.301] ON-DEMAND CONTINUING EDUCATION; REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin On-demand course requirements. new text end
new text begin
An on-demand continuing education
course offered online must:
new text end
new text begin
(1) specify the minimum system requirements;
new text end
new text begin
(2) provide encryption that ensures that all personal information, including the student's
name, address, and credit card number, cannot be read as it passes across the Internet;
new text end
new text begin
(3) include technology to guarantee seat time;
new text end
new text begin
(4) include a high level of interactivity;
new text end
new text begin
(5) include graphics that reinforce the content;
new text end
new text begin
(6) include the ability for the student to contact an instructor within a reasonable amount
of time;
new text end
new text begin
(7) include the ability for the student to get technical support within a reasonable amount
of time;
new text end
new text begin
(8) include a statement that the student's information will not be sold or distributed to
any third party without prior written consent of the student. Taking the course does not
constitute consent;
new text end
new text begin
(9) be available 24 hours a day, seven days a week, excluding minimal down time for
updating and administration;
new text end
new text begin
(10) provide viewing access to the online course at all times to the commissioner,
excluding minimal down time for updating and administration;
new text end
new text begin
(11) include a process to authenticate the student's identity;
new text end
new text begin
(12) inform the student and the commissioner how long a course is accessible after the
course is purchased;
new text end
new text begin
(13) inform the student that license education credit is not awarded for taking the course
after the course loses status as an approved course;
new text end
new text begin
(14) provide clear instructions on how to navigate through the course;
new text end
new text begin
(15) provide automatic bookmarking at any point in the course;
new text end
new text begin
(16) provide questions after each unit or chapter that must be answered before the student
can proceed to the next unit or chapter;
new text end
new text begin
(17) include a reinforcement response when a quiz question is answered correctly;
new text end
new text begin
(18) include a response when a quiz question is answered incorrectly;
new text end
new text begin
(19) include a final examination;
new text end
new text begin
(20) allow the student to return to and review any unit at any time, except during the
final examination;
new text end
new text begin
(21) provide a course evaluation at the end of the course. At a minimum, the evaluation
must ask the student to report any difficulties caused by the online education delivery
method; and
new text end
new text begin
(22) provide a completion certificate when the course and exam have been completed
and the provider has verified the completion. An electronic certificate is sufficient.
new text end
new text begin Subd. 2. new text end
new text begin Final examination. new text end
new text begin
The final examination must be either an encrypted online
examination or a paper examination that is monitored by a proctor who certifies that the
student took the examination. The student must not be allowed to review the course content
once the examination has begun.
new text end
Sec. 8.
Minnesota Statutes 2020, section 45.31, subdivision 2, is amended to read:
Subd. 2.
Approval.
(a) deleted text begin The commissioner must approve as a coordinator a person
meeting one or more of the following criteria: at least three years of full-time experience
in the administration of an education program during the five-year period immediately
before the date of application, or a degree in education plus two years experience during
the immediately preceding five-year period in one of the regulated industries for which
courses are being approved, or a minimum of five years experience within the previous six
years in the regulated industry for which courses are held.deleted text end A person applying for approval
as a course coordinator mustnew text begin :
new text end
new text begin
(1) be qualified or have experience in the applicable subject matter of courses offered
by the education provider or have experience administering an education program; and
new text end
new text begin (2)new text end make available upon request such records and data required by the commissioner to
administer the provisions and further the purposes of this chapter.
(b) Coordinator approval may not be transferred to an individual who has not already
been approved as an additional coordinator for the applicable license type for the providership
in question. An individual must be approved as a coordinator by the commissioner before
acting on behalf of an approved education provider.
Sec. 9.
Minnesota Statutes 2020, section 45.31, subdivision 3, is amended to read:
Subd. 3.
Responsibilities.
deleted text begin A coordinatordeleted text end new text begin An education providernew text end is responsible for:
(1) assuring compliance with all laws and rules relating to educational offerings governed
by the commissioner;
(2) assuring that students are provided with current and accurate information relating to
the laws and rules governing their licensed activity;
(3) supervising and evaluating courses and instructors. Supervision includes assuring,
especially when a course will be taught by more than one instructor, that all areas of the
curriculum are addressed without redundancy and that continuity is present throughout the
entire course;
(4) ensuring that instructors are qualified to teach the course offering;
(5) furnishing the commissioner, upon request, with copies of course and instructor
evaluations and qualifications of instructors. Evaluations must be completed by students
and coordinators;
(6) investigating complaints related to course offerings and instructors and forwarding
a copy of the written complaints to the Department of Commerce;
(7) maintaining accurate records relating to course offerings, instructors, tests taken by
students, and student attendance for a period of three years from the date on which the
course was completed. These records must be made available to the commissioner upon
request. In the event that an education provider ceases operation for any reason, the
coordinator is responsible for maintaining the records or providing a custodian for the
records acceptable to the commissioner. The coordinator must notify the commissioner of
the name and address of that person. In order to be acceptable to the commissioner, custodians
must agree to make copies of acknowledgments available to students at a reasonable fee.
Under no circumstances will the commissioner act as custodian of the records;
(8) ensuring that the coordinator is available to instructors and students throughout course
offerings and providing to the students and instructor the name of the coordinator and a
telephone number at which the coordinator can be reached;
(9) attending workshops or instructional programs as reasonably required by the
commissioner;
(10) providing course completion certificates within ten days of, but not before,
completion of the entire course. Course completion certificates must be completed in their
entirety. It is not necessary to provide a written course completion certificate if the course
completion certificate has been electronically delivered to the department or its designated
licensing contractor. A coordinator may require payment of the course tuition as a condition
for receiving the course completion certificate;
(11) notifying the commissioner immediately of any change in an application for the
course, coordinator, or instructor approval application; and
(12) in conjunction with the instructor, assuring and certifying attendance of students
enrolled in courses.
Sec. 10.
Minnesota Statutes 2020, section 46.131, subdivision 2, is amended to read:
Subd. 2.
Assessment authority.
Each deleted text begin bank, trust company, savings bank, savings
association, regulated lender, industrial loan and thrift company, credit union, motor vehicle
sales finance company, debt management services provider, debt settlement services provider,
insurance premium finance company, and residential PACE administrator, as defined in
section 216C.435, subdivision 10a,deleted text end new text begin financial institution governed by chapters 46 to 59A,
216C, and 332 to 332B that isnew text end organized under the laws of this state or required to be
administered by the commissioner of commerce shall pay into the state treasury its
proportionate share of the cost of maintaining the Department of Commerce.new text begin This subdivision
does not apply to student loan servicers or collection agencies.
new text end
Sec. 11.
Minnesota Statutes 2020, section 46.131, subdivision 4, is amended to read:
Subd. 4.
General assessment basis.
(a) Assessments shall be made by the commissioner
against each institution within the industry on an equitable basis, according to the total assetsnew text begin
or business volumenew text end of each institution as of the end of the previous calendar year.
(b) Assessments against residential PACE administrators, as defined in section 216C.435,
subdivision 10a, must be made by the commissioner according to the total business volume
as of the end of the previous calendar year.
Sec. 12.
Minnesota Statutes 2020, section 46.131, subdivision 11, is amended to read:
Subd. 11.
Financial institutions account; appropriation.
(a) The financial institutions
account is created as a separate account in the special revenue fund. Earnings, including
interest, dividends, and any other earnings arising from account assets, must be credited to
the account.
(b) The account consists of funds received from assessments under subdivision 7,
examination fees under subdivision 8, and funds received pursuant to subdivision 10 and
the following provisions: sectionsnew text begin 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54,
subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; new text end new text begin 48.61, subdivision 7, paragraph
(b); 49.36, subdivision 1; 52.203;new text end 53B.09; 53B.11, subdivision 1;new text begin 53C.02; 56.02; 58.10;new text end
58A.045, subdivision 2; deleted text begin anddeleted text end new text begin 59A.03;new text end 216C.437, subdivision 12new text begin ; 332A.04; and 332B.04new text end .
(c) Funds in the account are annually appropriated to the commissioner of commerce
for activities under this section.
Sec. 13.
Minnesota Statutes 2020, section 47.08, is amended to read:
47.08 ARTICLES OF INCORPORATION FILED WITH COMMISSIONER.
All persons proposing to incorporate and organize any financial institution, whether
defined or described as such by the laws of the state, shall, before doing any business in the
state as a corporation, deleted text begin and before filing their articles of incorporation with the secretary of
state or with any other officer with whom the law requires such articles to be filed or
recorded,deleted text end file a copy of deleted text begin suchdeleted text end new text begin the proposednew text end articlesnew text begin of incorporationnew text end with the commissioner
of commerce.
Sec. 14.
Minnesota Statutes 2020, section 47.16, subdivision 1, is amended to read:
Subdivision 1.
Filing.
The certificate of a corporation must be filed for record with the
deleted text begin secretary of statedeleted text end new text begin commissioner of commercenew text end . If the deleted text begin secretary of statedeleted text end new text begin commissioner of
commercenew text end finds that it conforms to law and that the required fee has been paid, the deleted text begin secretary
of statedeleted text end new text begin commissioner of commercenew text end must record it and certify that fact on it. deleted text begin The secretary
of state may not accept a certificate for filing unless the certificate also contains the
endorsement of the commissioner of commerce.
deleted text end
Sec. 15.
Minnesota Statutes 2020, section 47.16, subdivision 2, is amended to read:
Subd. 2.
Certificate of authority.
If the commissioner of commerce is satisfied that the
corporation has been organized for legitimate purposes, and under such conditions as to
merit and have public confidence, and that all provisions of law applicable to every branch
of business in which, by the terms of its certificate, it is authorized to engage, have been
complied with, the commissioner shall so certify. When the original deleted text begin certificate and thedeleted text end
certificate of incorporation deleted text begin from the secretary of statedeleted text end is filed with the commissioner of
commerce, the commissioner shall, within 60 days thereafter, execute and deliver to it a
certificate of authority.
Sec. 16.
Minnesota Statutes 2020, section 47.172, subdivision 2, is amended to read:
Subd. 2.
Effect.
The certificate to be filed to accomplish a restated certificate of
incorporation must be entitled "restated certificate of incorporation of (name of financial
corporation)" and must contain a statement that the restated certificate supersedes and takes
the place of the existing certificate of incorporation and all amendments to it. The restated
certificate of incorporation when executed, filed and recorded in the manner prescribed for
certificate of amendment supersedes and takes the place of an existing certificate of
incorporation and amendments to it. deleted text begin The secretary of state upon request must certify the
restated certificate of incorporation.
deleted text end
Sec. 17.
Minnesota Statutes 2020, section 47.28, subdivision 3, is amended to read:
Subd. 3.
Recording.
Upon receipt of the fees required for filing and recording amended
articles of incorporation of savings banks, the deleted text begin secretary of statedeleted text end new text begin commissioner of commercenew text end
shall record the amended articles of incorporation and certify that fact thereon, whereupon
the conversion of such savings bank into a savings association shall become final and
complete and thereafter said corporation shall have the powers and be subject to the duties
and obligations prescribed by the laws of this state applicable to savings associations.
Sec. 18.
Minnesota Statutes 2020, section 47.30, subdivision 5, is amended to read:
Subd. 5.
Recording.
Upon receipt of the fees required for filing and recording amended
articles of incorporation of savings associations, the deleted text begin secretary of statedeleted text end new text begin commissioner of
commercenew text end shall record the amended articles of incorporation and certify that fact thereon,
whereupon the conversion of such savings association into a savings bank shall become
final and complete and thereafter the signers of said amended articles and their successors
shall be a corporation, and have the powers and be subject to the duties and obligations
prescribed by the laws of this state applicable to savings banks.
Sec. 19.
Minnesota Statutes 2020, section 48A.15, subdivision 1, is amended to read:
Subdivision 1.
Authorization.
new text begin (a) new text end A trust company organized under the laws of this
state or a state bank and trust may, after completing the notification procedure required by
this subdivision, establish and maintain a trust service office at any office in this state or of
any other state or national bank. A state bank may, after completing the notification procedure
required by this subdivision, permit a trust company organized under the laws of this state
or a state bank and trust or a national bank in this state that is authorized to exercise trust
powers to establish and maintain a trust service office at any of its banking offices.
new text begin (b) new text end The trust company or state bank and trust and a state bank at which a trust service
office is to be established according to this section shall jointly file, on forms provided by
the commissioner, a notification of intent to establish a trust service office. The notification
must be accompanied by a filing fee of $100 payable to the commissioner, to be deposited
in the deleted text begin general fund of the statedeleted text end new text begin financial institutions account under section 46.131, subdivision
11new text end . No trust service office shall be established according to this section if disallowed by
order of the commissioner within 30 days of the filing of a complete and acceptable
notification of intent to establish a trust service office. An order of the commissioner to
disallow the establishment of a trust service office under this section is subject to judicial
review under sections 14.63 to 14.69.
Sec. 20.
Minnesota Statutes 2020, section 53.03, subdivision 1, is amended to read:
Subdivision 1.
Application, fee, notice.
Any corporation hereafter organized as an
industrial loan and thrift company, shall, after compliance with the requirements set forth
in sections 53.01 and 53.02, file a written application with the Department of Commerce
for a certificate of authorization. A corporation that will not sell or issue thrift certificates
for investment as permitted by this chapter need not comply with subdivision 2b. The
application must be in the form prescribed by the Department of Commerce. The application
must be made in the name of the corporation, executed and acknowledged by an officer
designated by the board of directors of the corporation, requesting a certificate authorizing
the corporation to transact business as an industrial loan and thrift company, at the place
and in the name stated in the application. At the time of filing the application the applicant
shall pay $1,500 filing fee if the corporation will not sell or issue thrift certificates for
investment, and a filing fee of $8,000 if the corporation will sell or issue thrift certificates
for investment. The fees must be deleted text begin turned over by the commissioner to the commissioner of
management and budget and credited to the general funddeleted text end new text begin collected by the commissioner
and deposited in the financial institutions account under section 46.131, subdivision 11new text end .
The applicant shall also submit a copy of the bylaws of the corporation, its articles of
incorporation and all amendments thereto at that time. An application for powers under
subdivision 2b must also require that a notice of the filing of the application must be
published once within 30 days of the receipt of the form prescribed by the Department of
Commerce, at the expense of the applicant, in a qualified newspaper published in the
municipality in which the proposed industrial loan and thrift company is to be located, or,
if there be none, in a qualified newspaper likely to give notice in the municipality in which
the company is proposed to be located. If the Department of Commerce receives a written
objection to the application from any person within 15 days of the notice having been fully
published, the commissioner shall proceed in the same manner as required under section
46.041, subdivisions 3 and 4, relating to state banks.
Sec. 21.
Minnesota Statutes 2020, section 53.03, subdivision 5, is amended to read:
Subd. 5.
Place of business.
Not more than one place of business may be maintained
under any certificate of authorization issued subsequent to the enactment of Laws 1943,
chapter 67, pursuant to the provisions of this chapter, but the Department of Commerce
may issue more than one certificate of authorization to the same corporation upon compliance
with all the provisions of this chapter governing an original issuance of a certificate of
authorization. To the extent that previously filed applicable information remains unchanged,
the applicant need not refile this information, unless requested. The filing fee for a branch
application shall be $500 and the investigation fee $250. An industrial loan and thrift
corporation with deposit liabilities may change one or more of its locations upon the written
approval of the commissioner of commerce. A fee of $100 must accompany each application
to the commissioner for approval to change the location of an established office. An industrial
loan and thrift corporation that does not sell and issue thrift certificates for investment may
change one or more locations by giving 30 days' written notice to the Department of
Commerce which shall promptly amend the certificate of authorization accordingly. No
change in place of business of a company to a location outside of its current trade area or
more than 25 miles from its present location, whichever distance is greater, shall be permitted
under the same certificate unless all of the applicable requirements of this section have been
met.new text begin All money collected by the commissioner under this chapter must be deposited into
the financial institutions account under section 46.131, subdivision 11.
new text end
Sec. 22.
Minnesota Statutes 2020, section 53C.02, is amended to read:
53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
(a) No person shall engage in the business of a sales finance company in this state without
a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank,
trust company, savings bank, savings association, or credit union, whether state or federally
chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated
Loan Act authorized to do business in this state shall be required to obtain a license under
sections 53C.01 to 53C.14.
(b) The application for a license shall be in writing, under oath and in the form prescribed
by the commissioner. The application shall contain the name of the applicant; date of
incorporation, if incorporated; the address where the business is or is to be conducted and
similar information as to any branch office of the applicant; the name and resident address
of the owner or partners, or, if a corporation or association, of the directors, trustees and
principal officers, and other pertinent information the commissioner requires.
(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the
following year, or any part thereof shall be the sum of $250 for the principal place of business
of the licensee, and the sum of $125 for each branch of the licensee. Any licensee who
proves to the satisfaction of the commissioner, by affidavit or other proof satisfactory to
the commissioner, that during the 12 calendar months of the immediately preceding fiscal
year, for which the license has been paid that the licensee has not held retail installment
contracts exceeding $15,000 in amount, shall be entitled to a refund of that portion of each
license fee paid in excess of $25. The commissioner shall certify deleted text begin to the commissioner of
management and budgetdeleted text end that the licensee is entitled to a refund, and payment deleted text begin thereofdeleted text end new text begin of the
refundnew text end shall be made by the commissioner deleted text begin of management and budgetdeleted text end . The amount necessary
to pay for the refundment of the license fee is appropriated deleted text begin out of the general funddeleted text end new text begin from the
financial institutions account under section 46.131, subdivision 11new text end . All license fees received
by the commissioner under sections 53C.01 to 53C.14 shall be deposited with the
commissioner of management and budget.
(d) Each license shall specify the location of the office or branch and must be
conspicuously displayed there. In case the location be changed, the commissioner shall
endorse the change of location on the license.
(e) Upon the filing of such application, and the payment of the fee, the commissioner
shall issue a license to the applicant to engage in the business of a sales finance company
under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which
shall expire the last day of June next following the date of its issuance. The license shall
not be transferable or assignable. No licensee shall transact any business provided for by
sections 53C.01 to 53C.14 under any other name.
(f) Section 58A.04, subdivisions 2 and 3, apply to this section.
Sec. 23.
Minnesota Statutes 2020, section 55.10, subdivision 1, is amended to read:
Subdivision 1.
Permitting access, removal, or delivery.
When a safe deposit box shall
have been hired from any licensed safe deposit company in the name of two or more persons,
including deleted text begin husband and wifedeleted text end new text begin a married couplenew text end , with the right of access being given to either,
or with access to either or the survivor or survivors of the person, or property is held for
safekeeping by any licensed safe deposit company for two or more persons, including
deleted text begin husband and wifedeleted text end new text begin a married couplenew text end , with the right of delivery being given to either, or with
the right of delivery to either of the survivor or survivors of these persons, any one or more
of these persons, whether the other or others be living or not, shall have the right of access
to the safe deposit box and the right to remove all, or any part, of the contents thereof, or
to have delivered to all or any one of them, or any part of the valuable personal property so
held for safekeeping; and, in case of this access, removal, or delivery, the safe deposit
company shall be exempt from any liability for permitting the access, removal, or delivery.
Sec. 24.
Minnesota Statutes 2020, section 56.02, is amended to read:
56.02 APPLICATION FEE.
(a) Application for license shall be in writing, under oath, and in the form prescribed by
the commissioner, and contain the name and the address, both of the residence and place
of business, of the applicant and, if the applicant is a copartnership or association, of every
member thereof, and if a corporation, of each officer and director thereof; also the county
and municipality, with street and number, if any, where the business is to be conducted, and
such further information as the commissioner may require. The applicant at the time of
making application, shall pay to the commissioner the sum of $500 as a fee for investigating
the application, and the additional sum of $250 as an annual license fee for a period
terminating on the last day of the current calendar year. In addition to the annual license
fee, every licensee hereunder shall pay to the commissioner the actual costs of each
examination, as provided for in section 56.10. All deleted text begin moneysdeleted text end new text begin moneynew text end collected by the
commissioner under this chapter shall be deleted text begin turned over to the commissioner of management
and budget and credited by the commissioner of management and budget to the general
fund of the statedeleted text end new text begin deposited in the financial institutions account under section 46.131,
subdivision 11new text end .
(b) Every applicant shall also prove, in form satisfactory to the commissioner, that the
applicant has available for the operation of the business at the location specified in the
application, liquid assets of at least $50,000.
(c) Section 58A.04, subdivisions 2 and 3, apply to this section.
Sec. 25.
Minnesota Statutes 2020, section 60A.033, subdivision 8, is amended to read:
Subd. 8.
Costs.
All bills for examination costs being charged to an insurance company
pursuant to subdivision 5 or section 60A.031, subdivision 3, paragraph (c), must:
(1) be itemized and, with respect to examiner billings, contain activity detail on a quarterly
hourly basis by an individual examiner and disclose the applicable hourly billing rates,
together with per-charge detail for related travel or other expenses; and
(2) provide a due date no less than deleted text begin 30deleted text end new text begin 60new text end days from receipt of the bill.
Sec. 26.
Minnesota Statutes 2020, section 60A.033, subdivision 9, is amended to read:
Subd. 9.
Completion of examination.
An examination under section 60A.031 must not
exceed 18 months from the date the commissioner receives the insurance company's first
submission pursuant to a scheduling order, unless:
(1) the commissioner determines that there has been a material lack of cooperation by
the insurance companynew text begin and advises the company in writing of the specific instances
demonstrating a lack of cooperationnew text end ;
(2) the examination is a multistate examination; or
(3) the commissioner determines that additional time is necessary to complete the
examination and the commissioner notifies the insurance company in writing of the reasons
why the examination requires additional time.
Sec. 27.
Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Informal disposition. new text end
new text begin
(a) The commissioner must make an attempt to
informally resolve any alleged violations of law identified during the examination or
investigation. An attempt to informally resolve a violation may consist of a consent order,
nonpublic letter of reprimand, or other informal resolution or disposition.
new text end
new text begin
(b) The terms of a consent order or other informal disposition that prescribes compliance
requirements must be consistent with the requirements of Minnesota law.
new text end
Sec. 28.
Minnesota Statutes 2020, section 60A.033, is amended by adding a subdivision
to read:
new text begin Subd. 12. new text end
new text begin Report to the legislature. new text end
new text begin
Each year by February 1, the commissioner must
report the following information to the chairs and ranking minority members of the house
of representatives and senate committees having jurisdiction over commerce:
new text end
new text begin
(1) a listing of the number of pending market conduct exams and the year the exams
were commenced;
new text end
new text begin
(2) the number of exams closed during the prior year and the current total of costs charged
to the companies for each exam;
new text end
new text begin
(3) whether the exam is being conducted, in whole or in part, by third-party examiners;
and
new text end
new text begin
(4) other information that the chairs or ranking minority members may reasonably
request, subject to the limitations of section 60A.031, subdivision 4, paragraph (f).
new text end
Sec. 29.
Minnesota Statutes 2020, section 60A.952, subdivision 2, is amended to read:
Subd. 2.
Notice to and cooperation with the Commerce Fraud Bureau.
Any insurer
or insurance professional that has reasonable belief that an act of insurance fraud will be,
is being, or has been committed, deleted text begin shalldeleted text end new text begin maynew text end furnish and disclose all relevant information to
the Commerce Fraud Bureau or to any authorized person and cooperate fully with any
investigation conducted by the Commerce Fraud Bureau. Any person that has a reasonable
belief that an act of insurance fraud will be, is being, or has been committed, or any person
who collects, reviews, or analyzes information concerning insurance fraud may furnish and
disclose any information in its possession concerning the act to the Commerce Fraud Bureau,
any authorized person, or to an authorized representative of an insurer that requests the
information for the purpose of detecting, prosecuting, or preventing insurance fraud. The
insurer may also release relevant information to any person authorized to receive the
information under section 72A.502, subdivision 2. If disclosure is made to an authorized
person other than the Commerce Fraud Bureau, a copy of the disclosure must be sent to the
Commerce Fraud Bureau.
Sec. 30.
Minnesota Statutes 2020, section 60A.953, is amended to read:
60A.953 ENFORCEMENT; REFUSAL TO COOPERATE WITH AN
INVESTIGATION.
The intentional failure to provide relevant information as required by section 60A.952,
subdivision 1, deleted text begin or to provide notification of insurance fraud as required by section 60A.952,
subdivision 2,deleted text end is punishable as a misdemeanor. It is unlawful for any person to knowingly
or intentionally interfere with the enforcement of the provisions of sections 60A.951 to
60A.956 or investigation of suspected or actual violations of sections 60A.951 to 60A.956
and is punishable as a misdemeanor.
Sec. 31.
Minnesota Statutes 2020, section 60A.954, subdivision 1, is amended to read:
Subdivision 1.
Establishment.
An insurer shall institute, implement, and maintain an
antifraud plan. For the purpose of this section, the term insurer does not include reinsurers,
the Workers' Compensation Reinsurance Association, self-insurers, and excess insurers.
Within 30 days after instituting or new text begin materially new text end modifying an antifraud plan, the insurer shall
notify the commissioner in writing. The notice must include the name of the person
responsible for administering the plan. An antifraud plan shall establish procedures to:
(1) prevent insurance fraud, including: internal fraud involving the insurer's officers,
employees, or agents; fraud resulting from misrepresentations on applications for insurance;
and claims fraud;
(2) report insurance fraud to appropriate law enforcement authorities; and
(3) cooperate with the prosecution of insurance fraud cases.
Sec. 32.
Minnesota Statutes 2020, section 65B.84, subdivision 1, is amended to read:
Subdivision 1.
Program described; commissioner's duties; appropriation.
(a) The
commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws, and
provide a forum for identification of critical problems for those persons dealing with
automobile theft;
(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect to
automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part to
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need of
further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas of the
state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety, pursuant
to subdivision 3 from the automobile theft prevention special revenue account for automobile
theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;
(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;
(v) providing financial support to judicial agencies for programs designed to reduce the
incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and to
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely to occur;
and
(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and inspections
staff, and members of the judiciary.
(b) The commissioner may not spend in any fiscal year more than deleted text begin tendeleted text end new text begin 7.5new text end percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to the
automobile theft prevention special revenue account each year, less the transfer of $1,300,000
each year to the insurance fraud prevention account described in section 297I.11, subdivision
2.
(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
in the auto theft prevention account to the insurance fraud prevention account under section
45.0135, subdivision 6.
Sec. 33.
Minnesota Statutes 2020, section 65B.84, subdivision 2, is amended to read:
Subd. 2.
Annual report.
By deleted text begin January 15 ofdeleted text end new text begin September 30new text end each year, the commissioner
shall report to the governor and the chairs and ranking minority members of the house of
representatives and senate committees having jurisdiction over the Departments of Commerce
and Public Safety on the activities and expenditures in the preceding year.
Sec. 34.
Minnesota Statutes 2020, section 80A.61, is amended to read:
80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
REPRESENTATIVE.
(a) Application for initial registration by broker-dealer, agent, investment adviser,
or investment adviser representative. A person shall register as a broker-dealer, agent,
investment adviser, or investment adviser representative by filing an application and a
consent to service of process complying with section 80A.88, and paying the fee specified
in section 80A.65 and any reasonable fees charged by the designee of the administrator for
processing the filing. The application must contain:
(1) the information or record required for the filing of a uniform application; and
(2) upon request by the administrator, any other financial or other information or record
that the administrator determines is appropriate.
(b) Amendment. If the information or record contained in an application filed under
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
shall promptly file a correcting amendment.
(c) Effectiveness of registration. If an order is not in effect and a proceeding is not
pending under section 80A.67, registration becomes effective at noon on the 45th day after
a completed application is filed, unless the registration is denied. A rule adopted or order
issued under this chapter may set an earlier effective date or may defer the effective date
until noon on the 45th day after the filing of any amendment completing the application.
(d) Registration renewal. A registration is effective until midnight on December 31 of
the year for which the application for registration is filed. Unless an order is in effect under
section 80A.67, a registration may be automatically renewed each year by filing such records
as are required by rule adopted or order issued under this chapter, by paying the fee specified
in section 80A.65, and by paying costs charged by the designee of the administrator for
processing the filings.
(e) Additional conditions or waivers. A rule adopted or order issued under this chapter
may impose such other conditions, not inconsistent with the National Securities Markets
Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
part, specific requirements in connection with registration as are in the public interest and
for the protection of investors.
(f) Funding portal registration. A funding portal that has its principal place of business
in the state of Minnesota shall register with the state of Minnesota by filing with the
administrator a copy of the information or record required for the filing of an application
for registration as a funding portal in the manner established by the Securities and Exchange
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
any rule adopted or order issued, and any amendments thereto.
(g) Application for investment adviser representative registration.
(1) The application for initial registration as an investment adviser representative pursuant
to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
Industry Registration or Transfer) in accordance with the form instructions and by filing
the form U-4 with the IARD. The application for initial registration must also include the
following:
(i) proof of compliance by the investment adviser representative with the examination
requirements of:
(A) the Uniform Investment Adviser Law Examination (Series 65); or
(B) deleted text begin the General Securities Representative Examination (Series 7) anddeleted text end the Uniform
Combined State Law Examination (Series 66);
(ii) any other information the administrator may reasonably require.
(2) The application for the annual renewal registration as an investment adviser
representative shall be filed with the IARD.
(3)(i) The investment adviser representative is under a continuing obligation to update
information required by Form U-4 as changes occur;
(ii) An investment adviser representative and the investment adviser must file promptly
with the IARD any amendments to the representative's Form U-4; and
(iii) An amendment will be considered to be filed promptly if the amendment is filed
within 30 days of the event that requires the filing of the amendment.
(4) An application for initial or renewal of registration is not considered filed for purposes
of section 80A.58 until the required fee and all required submissions have been received
by the administrator.
(5) The application for withdrawal of registration as an investment adviser representative
pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
with the IARD.
Sec. 35.
Minnesota Statutes 2020, section 80C.05, subdivision 2, is amended to read:
Subd. 2.
Commissioner's powers.
The commissioner shall have power to place such
conditions, limitations, and restrictions on any registration as may be necessary to carry out
the purposes of sections 80C.01 to 80C.22. Upon compliance with the provisions of sections
80C.01 to 80C.22 and other requirements of the commissioner, and if the commissioner
finds no ground for denial of the registration, the commissioner shall register the franchise.
Registration deleted text begin shall be by entry in a book called Register of Franchises, which entrydeleted text end shall
show the franchise registered and for whom registered, and shall specify the conditions,
limitations, and restrictions upon such registration, if any, or shall make proper reference
to a formal order of the commissioner on file showing such conditions, limitations, and
restrictions. The registration shall become effective upon issuance by the commissioner of
an order for registration.
Sec. 36.
Minnesota Statutes 2020, section 80C.08, subdivision 1, is amended to read:
Subdivision 1.
Filing; fee.
deleted text begin Within 120 days after the fiscal year end of the registrant,
the registrant shalldeleted text end new text begin A registration is effective for 12 months from the date the commissioner's
order is issued. A registrant mustnew text end file a report in the form prescribed by rule of the
commissionernew text begin before the end of the registration effective periodnew text end . A fee of $200 shall
accompany the annual report.
new text begin EFFECTIVE DATE; APPLICABILITY. new text end
new text begin
This section is effective January 1, 2023,
and applies to initial registrations filed on or after that date.
new text end
Sec. 37.
Minnesota Statutes 2020, section 80G.01, subdivision 3, is amended to read:
Subd. 3.
Dealer.
(a) Subject to the exceptions in paragraph (b), a "dealer" means any
person who buys, sells, solicits, or markets bullion products or investments in bullion
products to consumers anddeleted text begin :deleted text end new text begin conducts Minnesota transactions.
new text end
deleted text begin
(1) is incorporated, registered, domiciled, or otherwise located in this state;
deleted text end
deleted text begin
(2) has a dealer representative located in this state; or
deleted text end
deleted text begin
(3) does business with a consumer at a location in this state, or delivers or ships a bullion
product or makes a payment to a consumer at an address in this state, unless the transaction
occurs when the consumer is at a business location outside of this state.
deleted text end
(b) A dealer does not include any of the following persons:
(1) a person who engages only in wholesale bullion product transactions with other
persons who engage only in wholesale bullion product transactions or with dealers who buy
or sell at retail and are properly registered under this chapter;
(2) a person who engages only in transactions at occasional garage or yard sales held at
the seller's residence, farm auctions held at the seller's residence, or estate sales held at the
decedent's residence;
(3) a person who is properly registered pursuant to chapter 80A, or the federal Securities
Exchange Act of 1934 and rules promulgated thereunder as a securities broker dealer or
broker dealer agent;
(4) an auctioneer who auctions bullion products on behalf of an owner, if the auctioneer
does not take title or ownership of the bullion products, or the operator of an Internet website
that allows users to offer the sale of bullion products through that website, does not set the
price, is not the seller of record, and does not take possession of any bullion products to be
offered;new text begin or
new text end
deleted text begin
(5) a person who engages only in transactions at no more than 12 trade shows per year
in this state where the consumer is present and the transaction is made at the trade show;
or
deleted text end
deleted text begin (6)deleted text end new text begin (5)new text end a federally or state-chartered bank, bank and trust, savings bank, savings
association, or credit union or any operating subsidiary of them.
Sec. 38.
Minnesota Statutes 2020, section 80G.01, is amended by adding a subdivision to
read:
new text begin Subd. 5a. new text end
new text begin Minnesota transaction. new text end
new text begin
"Minnesota transaction" means a bullion product
transaction conducted:
new text end
new text begin
(1) by a dealer that is incorporated, registered, domiciled, or otherwise located in
Minnesota;
new text end
new text begin
(2) by a dealer representative at a location in Minnesota;
new text end
new text begin
(3) between a dealer and a consumer who lives in Minnesota; or
new text end
new text begin
(4) between a dealer and a Minnesota consumer when the transaction involves:
new text end
new text begin
(i) delivering or shipping a bullion product to an address in Minnesota;
new text end
new text begin
(ii) delivering to or shipping from a precious metal depository on behalf of a Minnesota
resident; or
new text end
new text begin
(iii) 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 at a business
location outside of Minnesota.
new text end
Sec. 39.
Minnesota Statutes 2020, section 80G.02, subdivision 1, is amended to read:
Subdivision 1.
Registration required.
It is unlawful for a dealer or dealer representative
to deleted text begin solicit, market, buy, sell, or deliver bullion products or investments in bullion products
to a consumerdeleted text end new text begin conduct a Minnesota transactionnew text end without being registered by the commissioner
as provided for in this chapter. A dealer must submit an application to register itself and
each of its dealer representatives within 45 days of reaching $25,000 in the aggregate of
deleted text begin bullion product transactions with consumersdeleted text end new text begin Minnesota transactionsnew text end between July 1 and
June 30 of any year, as determined by the transactions' sale or purchase prices. Once a dealer
is required to register itself and its dealer representatives, the dealer must thereafter renew
its registration and the registration of each of its dealer representatives in accordance with
this chapterdeleted text begin , regardless of the aggregate annual amount of transactions,deleted text end unless the person
ceases to be a dealer. A dealer representative may not buy, sell, solicit, or market bullion
products or investments in bullion products on behalf of a dealer unless the dealer is properly
registered with the commissioner under this section.
Sec. 40.
Minnesota Statutes 2020, section 80G.02, subdivision 4, is amended to read:
Subd. 4.
Notice of change in registration information.
Anew text begin registerednew text end dealer must provide
the commissioner written notice of a change in the dealer's name, assumed names, doing
business as names, business addresses, including all business addresses at which it or its
dealer representatives conduct business, owners, e-mail addresses, website domain names,
or primary telephone number used by it or its dealer representatives to buy, sell, solicit, or
market to consumers bullion products or investments in bullion products no later than 30
days after the change occurs.
Sec. 41.
Minnesota Statutes 2020, section 80G.03, subdivision 2, is amended to read:
Subd. 2.
Dealer responsibility for actions of dealer representatives.
The commissioner
may take action against a dealer for any violations of this chapter by its dealer representatives
conducting deleted text begin activitiesdeleted text end new text begin Minnesota transactionsnew text end on behalf of or at the direction of the dealer.
The commissioner may also take action against the dealer representative.
Sec. 42.
Minnesota Statutes 2020, section 80G.04, subdivision 1, is amended to read:
Subdivision 1.
Dealer registration precluded.
The commissioner must deny an
application for registration or renewal of a dealer, or revoke such registration, if the bullion
deleted text begin coindeleted text end new text begin productnew text end dealer or its owners or officers have within the last ten years been convicted
in any court of any financial crime or other crime involving fraud or theft.
Sec. 43.
Minnesota Statutes 2020, section 80G.05, subdivision 1, is amended to read:
Subdivision 1.
Screening process required.
Eachnew text begin registerednew text end dealer must establish
procedures to screen each of its owners and officers and each of its dealer representatives
prior to submitting the application to the commissioner for initial registration and at each
renewal. The results of such screenings shall be kept on file by the dealer and, if requested
by the commissioner, provided to the commissioner as part of the initial registration and all
renewal registrations.
Sec. 44.
Minnesota Statutes 2021 Supplement, section 80G.06, subdivision 1, is amended
to read:
Subdivision 1.
Surety bond requirement.
(a) Every dealer shall maintain a current,
valid surety bond issued by a surety company admitted to do business in Minnesota in an
amount based on thenew text begin Minnesotanew text end transactions deleted text begin conducted with Minnesota consumers (purchases
from and sales to consumers at retail)deleted text end during the 12-month period prior to registration, or
renewal, whichever is applicable.
(b) The amount of the surety bond shall be as specified in the table below:
| Transaction Amount in Preceding 12-month Period |
Surety Bond Required |
| deleted text begin $0deleted text end new text begin $25,000new text end to $200,000 |
$25,000 |
| $200,000.01 to $500,000 |
$50,000 |
| $500,000.01 to $1,000,000 |
$100,000 |
| $1,000,000.01 to $2,000,000 |
$150,000 |
| Over $2,000,000 |
$200,000 |
Sec. 45.
Minnesota Statutes 2020, section 80G.06, subdivision 2, is amended to read:
Subd. 2.
Action on bond permitted.
A consumernew text begin involved in a Minnesota transaction
who isnew text end injured in money or property by a dealer's or dealer representative's failure to deleted text begin provide
bullion products that the consumer has paid for or failure to remit money or goods owed to
the consumer in connection with the consumer's sale of bullion productsdeleted text end new text begin comply with this
chapternew text end may file a claim with the surety and if the claim is not paid, is authorized to bring
an action based on the bond and recover against the surety. The commissioner or attorney
general may also file a claim and bring an action on the bond and recover against the surety
on behalf of a consumer so injured.
Sec. 46.
Minnesota Statutes 2020, section 80G.07, subdivision 1, is amended to read:
Subdivision 1.
Sales practices.
deleted text begin Nodeleted text end new text begin When conducting a Minnesota transaction, anew text end dealer
or dealer representative deleted text begin shalldeleted text end new text begin must notnew text end :
(1) prior to a transaction regarding bullion products, or concurrent with the delivery
thereof, fail to provide to the consumer an invoice, which, in a clear and conspicuous manner,
discloses the dealer's registration number, the Department of Commerce's e-mail address
and telephone number, the sale or purchase price, the quantity of the bullion products, and
specifically identifies and describes the bullion products, as well as their precious metal
content, but only if it differs from the precious metal content specified by a government
mint issuing the product and struck on the product, or if the product is not issued by a
government mint;
(2) fail to investigate any consumer complaint and retain records of all consumer
complaints, the results of its investigations, and the dealer's response and resolution of the
complaint;
(3) fail to deliver by common carrier bullion products to a consumer within the time
agreed upon with the consumer or, if no such agreement exists, within 30 days after the
consumer has paid for the bullion products;
(4) fail to pay a consumer for purchased bullion products within the time agreed upon
with the consumer or, if no such agreement exists, within 30 days after the consumer has
provided the bullion products;
(5) misrepresent the delivery date of bullion products or payment for bullion products,
or the dealer or representative's professional qualifications, affiliations, or registration;
(6) misrepresent any material aspect of a bullion product, including its performance,
efficacy, nature, investment value, central characteristics, liquidity, earnings potential, or
profitability;
(7) misrepresent the manner in which any bullion products a consumer provides will be
stored or otherwise handled once received;
(8) renegotiate the terms of a sale or purchase after receiving a consumer's payment or
bullion products without first obtaining the consumer's agreement to renegotiate and offering
the consumer the option to have the payment fully refunded or the entirety of the bullion
products returned;
(9) fail to respond within three business days to a consumer inquiry about the delivery
status of bullion products that the consumer has paid for but not yet received or the status
of a payment for bullion products that the consumer has already provided;
(10) telephone or solicit a consumer, or sell or provide the consumer's name to any other
dealer or dealer representative, after the consumer requests not to be contacted;
(11) violate a subpoena or order of the commissioner or a court;
(12) make any communication to a potential buyer or seller of bullion products that
misrepresents the relationship, if any, between the dealer or dealer representative and any
government agency or mint;
(13) improperly withhold, misappropriate, or convert any money or properties received
in the course of buying, selling, soliciting, or marketing bullion products or investments in
bullion products to consumers;
(14) misrepresent the terms of an actual or proposed purchase or sale of bullion products
or investment in bullion products to a consumer; or
(15) violate any other federal, state, or local law or rule related to selling, purchasing,
soliciting, or marketing of bullion products, investments in bullion products, or precious
metals, or any federal, state, or local law related to fraudulent, coercive, or dishonest
practices, or federal, state, or local law related to taxation or labor standards.
Sec. 47.
Minnesota Statutes 2021 Supplement, section 80G.11, is amended to read:
80G.11 NOTIFICATION TO COMMISSIONER.
Anew text begin registerednew text end dealer must notify the commissioner of any dealer representative termination
within ten days of the termination if the termination is based in whole or in part on a violation
of this chapter.
Sec. 48.
Minnesota Statutes 2020, section 82B.03, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Minimum damage acquisition report. new text end
new text begin
A real estate appraiser may provide a
minimum damage acquisition report for purposes of section 117.036. When providing a
minimum damage acquisition report, a real estate appraiser is not engaged in real estate
appraisal activity and is not subject to this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective September 1, 2022.
new text end
Sec. 49.
Minnesota Statutes 2020, section 82B.19, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Out-of-state continuing education credit. new text end
new text begin
(a) For purposes of this subdivision,
the following terms have the meanings given:
new text end
new text begin
(1) "asynchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board; and
new text end
new text begin
(2) "synchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board, and includes an educational process based on live or real-time
instruction where there is no geographic separation of instructor and student.
new text end
new text begin
(b) Notwithstanding section 45.30, subdivisions 1 and 6, a real estate appraiser may
submit, in a form prescribed by the commissioner, an application for continuing education
credit for a synchronous educational offering that has not been submitted for prior approval
in Minnesota. The commissioner must grant a real estate appraiser continuing education
credit if:
new text end
new text begin
(1) the application is submitted on or before August 1 of the year in which the real estate
appraiser license is due for renewal;
new text end
new text begin
(2) the synchronous educational offering has been approved for continuing education
credit by the regulator of real estate appraisers in at least one other state or United States
territory; and
new text end
new text begin
(3) an application is submitted by the real estate appraiser to the commissioner within
30 days of successful completion of the synchronous education offering.
new text end
new text begin
(c) The application must include a certificate of successful completion from the
synchronous education offering provider. The commissioner must grant a real estate appraiser
the same number of continuing education credits for the successful completion of the
synchronous educational offering as was approved for the offering by the out-of-state real
estate appraiser regulatory authority. The commissioner must grant a real estate appraiser
continuing education credit within 60 days of the submission of the completed application
for out-of-state continuing education credit.
new text end
new text begin
(d) The commissioner may charge a fee to a real estate appraiser, in an amount determined
by the commissioner, to submit an application under this subdivision.
new text end
new text begin
(e) This subdivision does not apply to asynchronous educational offerings.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective September 1, 2022.
new text end
Sec. 50.
Minnesota Statutes 2021 Supplement, section 82B.25, subdivision 2, is amended
to read:
Subd. 2.
Education.
deleted text begin Within two years of receiving a license under this chapter and as
required by the Appraiser Qualifications Board,deleted text end A real property appraiser shall provide to
the commissioner evidence of satisfactory completion of a continuing education course on
the valuation bias of real property.new text begin An appraiser licensed after September 1, 2021, must
complete the course required by this section prior to the appraiser's first license renewal.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective September 1, 2022.
new text end
Sec. 51.
Minnesota Statutes 2020, section 82C.17, subdivision 2, is amended to read:
Subd. 2.
Evidence.
(a) An appraisal management company can evidence that the fees
paid to an appraiser were reasonable and customary through:
(1) objective third-party information, including, but not limited to, government agency
fee schedules or academic studies. An academic study used must exclude appraisal
assignments ordered by an appraisal management companydeleted text begin . The commissioner may establish
a fee scheduled for use by an appraisal management companydeleted text end ; or
(2) reviewing each of the following factors and making adjustments to recent fees paid
for appraisal services performed in the market area:
(i) the type of property appraised;
(ii) the scope of the appraisal work;
(iii) the time in which the appraisal service must be performed;
(iv) appraiser qualifications;
(v) appraiser experience and professional record; and
(vi) appraiser work quality.
(b) The fees paid for a complex appraisal assignment shall reflect the increased time,
difficulty, and scope of work required.
(c) An appraisal management company shall maintain written documentation describing
and substantiating all methods and information used to determine the customary and
reasonable fees required by this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective September 1, 2022.
new text end
Sec. 52.
new text begin
[214.035] LICENSING DISQUALIFICATIONS; PRELIMINARY
APPLICATIONS; REPORTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
As used in this section, "state licensor" or "licensor" means
any state agency or examining and licensing board that issues occupational or professional
licenses, registrations, or certificates. State licensor or licensor does not include the
Department of Health, Department of Human Services, or any health-related licensing board,
as defined in section 214.01, subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Preliminary applications. new text end
new text begin
(a) Notwithstanding any law to the contrary, all
state licensors shall permit a person to submit a preliminary application for a determination
pursuant to this section as to whether a criminal conviction or any other record of alleged
misconduct that may be considered by the state licensor under state law would make the
person ineligible to receive an occupational or professional license, registration, or certificate
issued by the state licensor.
new text end
new text begin
(b) An applicant shall submit a preliminary application and any other supporting
documents to the appropriate state licensor in a form and manner approved by the licensor.
The state licensor may require that the applicant provide a copy of the applicant's criminal
record or complete a background check or background study if required by statute in the
form and manner approved by the licensor to obtain a professional or occupational license,
registration, or certificate from the licensor.
new text end
new text begin
(c) A state licensor may charge a fee to cover any expenses incurred in connection with
processing a preliminary application, provided the fee does not exceed the actual cost to
the state licensor of processing the application or the initial fee for the applicable license,
registration, or certificate. If the applicant subsequently applies for the license, registration,
or certificate, the amount of the preliminary application fee paid by the applicant must be
credited toward the applicant's initial fee for the license, registration, or certificate. An
applicant may request a waiver of this fee. A fee collected under this paragraph for the
expenses incurred by the state licensor shall be deposited in the fund in the state treasury
in which the state licensor deposits fees collected for issuing occupational or professional
licenses, registrations, or certificates. If the state licensor does not collect a fee for issuing
occupational or professional licenses, registrations, or certificates, any fee collected under
this paragraph shall be deposited pursuant to section 214.06, subdivision 1.
new text end
new text begin
(d) Upon receipt of a completed preliminary application and any necessary supporting
documents, the state licensor must determine under state law whether a criminal conviction
or other record of alleged misconduct that may be considered under state law would make
the applicant ineligible to receive a professional or occupational license, registration, or
certificate from the licensor. The state licensor must issue a written decision within 60 days
of receiving a completed preliminary application. If the state licensor determines that a
criminal conviction or other record of alleged misconduct would make the applicant ineligible
to receive a professional or occupational license, registration, or certificate, the written
decision must:
new text end
new text begin
(1) state all reasons the professional or occupational license, registration, or certificate
would be denied, including the standard used to make the decision;
new text end
new text begin
(2) notify the applicant of the right to appeal the decision or seek reconsideration of the
results of a background check or background study, if applicable; and
new text end
new text begin
(3) inform the applicant of any action or additional steps the applicant could take to
qualify for a professional or occupational license, registration, or certificate.
new text end
new text begin
(e) If a state licensor determines that no criminal convictions or other records of alleged
misconduct would make the applicant ineligible to receive a professional or occupational
license, registration, or certificate, that decision is binding on the licensor unless the decision
is clearly erroneous under state law or the applicant:
new text end
new text begin
(1) is convicted of a crime or commits any other disqualifying act that may be considered
by the state licensor under state law after submission of the preliminary application;
new text end
new text begin
(2) provided incomplete information in the preliminary application; or
new text end
new text begin
(3) provided inaccurate or fraudulent information in the preliminary application.
new text end
new text begin
(f) This section does not apply to a state licensor that does not require an applicant to
provide a criminal record, complete a background check, or complete a background study.
new text end
new text begin Subd. 3. new text end
new text begin Reports. new text end
new text begin
(a) By January 15 of each year, every state licensor shall report to the
Department of Employment and Economic Development on:
new text end
new text begin
(1) the number of individuals who applied for a professional or occupational license,
registration, or certificate from the licensor;
new text end
new text begin
(2) the number of individuals described in clause (1) who were found to be ineligible
due to a criminal conviction or other record of alleged misconduct;
new text end
new text begin
(3) the number of individuals who submitted a preliminary application under this section;
and
new text end
new text begin
(4) the number of individuals described in clause (3) who were found to be ineligible
due to a criminal conviction or other record of alleged misconduct.
new text end
new text begin
(b) On or before February 15 of each year, the commissioner of employment and
economic development shall compile the reports received under paragraph (a) and provide
the compiled reports to the chairs and ranking minority members of the house of
representatives and senate committees and divisions with jurisdiction over employment.
The commissioner of employment and economic development must make the report readily
available on the department's public website.
new text end
Sec. 53.
Minnesota Statutes 2020, 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 D4814-11b.
Gasoline that is not blended with biofuel must also comply with the volatility requirements
in Code of Federal Regulations, title 40, part deleted text begin 80deleted text end new text begin 1090new text end .
(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. 54.
Minnesota Statutes 2020, 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
deleted text begin 80deleted text end new text begin 1090new text end ;
(2) comply with ASTM specification D4814-11b, or the gasoline base stock from which
a gasoline-ethanol blend was produced must comply with ASTM specification D4814-11b;
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. 55.
Minnesota Statutes 2020, section 239.791, subdivision 2a, is amended to read:
Subd. 2a.
Federal Clean Air Act waivers; conditions.
(a) Before a waiver granted by
the United States Environmental Protection Agency under United States Code, title 42,
section 7545, may alter the minimum content level required by subdivision 1, paragraph
(a), clause (1), item (ii), the waiver must:
(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal
Regulations, title 40, deleted text begin section 80.27deleted text end new text begin part 1090.215new text end , paragraph deleted text begin (d)deleted text end new text begin (b)new text end , for blends of gasoline
and ethanol up to the maximum percent of denatured ethanol by volume authorized under
the waiver.
(b) The minimum biofuel requirement in subdivision 1, paragraph (a), clause (1), item
(ii), shall, upon the grant of the federal waiver, be effective the day after the commissioner
of commerce publishes notice in the State Register. In making this determination, the
commissioner shall consider the amount of time required by refiners, retailers, pipeline and
distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the
operational and logistical changes required to supply fuel in compliance with the minimum
biofuel requirement.
Sec. 56.
Minnesota Statutes 2020, 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
D4814-11b.
(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification D4814-11b and the volatility
requirements in Code of Federal Regulations, title 40, part deleted text begin 80deleted text end new text begin 1090new text end .
(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. 57.
Minnesota Statutes 2020, section 332.33, subdivision 3, is amended to read:
Subd. 3.
Term.
Licenses issued or renewed and registrations received by the
commissioner of commerce under sections 332.31 to 332.44 shall expire on June 30. Each
collection agency license shall plainly state the name and business address of the licensee,
and shall be posted in a conspicuous place in the office where the business is transacted.
The fee for each collection agency license is $500, and renewal is $400. The fee for each
collector registration and renewal is $10new text begin , which entitles the individual collector to work at
a licensee's business location or in another location as provided under subdivision 5b. An
additional branch license is not required for a location used under subdivision 5bnew text end . A collection
agency licensee who desires to carry on business in more than one place shall procure a
license for each place where the business is to be conducted.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 1, 2022.
new text end
Sec. 58.
Minnesota Statutes 2020, section 332.33, is amended by adding a subdivision to
read:
new text begin Subd. 5b. new text end
new text begin Work from home. new text end
new text begin
An employee of a licensed collection agency may work
from a location other than the licensee's business location if the licensee and employee
comply with all requirements under this section that would apply if the employee were
working at the business location.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective June 1, 2022.
new text end
Sec. 59.
Minnesota Statutes 2020, section 336.9-510, is amended to read:
336.9-510 EFFECTIVENESS OF FILED RECORD.
(a) Filed record effective if authorized. A filed record is effective only to the extent
that it was filed by a person that may file it under section 336.9-509new text begin or by the filing office
under section 336.9-5135new text end .
(b) Authorization by one secured party of record. A record authorized by one secured
party of record does not affect the financing statement with respect to another secured party
of record.
(c) Continuation statement not timely filed. A continuation statement that is not filed
within the six-month period prescribed by section 336.9-515(d) is ineffective.
Sec. 60.
new text begin
[336.9-5135] TERMINATION OF WRONGFULLY FILED FINANCING
STATEMENT; REINSTATEMENT.
new text end
new text begin
(a) Intent to harass. "Intent to harass" means that from the totality of the information
provided in the record, it appears obvious to the filing office that there is no valid basis for
the filing of the record.
new text end
new text begin
(b) Affidavit of wrongful filing. A person identified as the debtor in a filed financing
statement may deliver to the filing office a notarized affidavit that identifies the financing
statement by file number, indicates the person's mailing address, and states that the person
believes the filed record identifying the person as the debtor was not authorized to be filed
and was communicated or caused to be communicated to the office with the intent to harass
or defraud the person identified as the debtor. The office may reject an affidavit that is
incomplete or that the office believes was delivered with the intent to harass or defraud the
secured party. The secretary of state must provide a form of affidavit for use under this
section.
new text end
new text begin
(c) Termination statement by filing office. If an affidavit is delivered to the filing
office under subsection (b) and is not rejected under subsection (b), the office must promptly
file a termination statement with respect to the financing statement identified in the affidavit.
The termination statement must identify by its file number the initial financing statement
it relates to and must indicate that it was filed pursuant to this section. A termination
statement filed under this subsection is not effective until 20 days after the date it is filed.
new text end
new text begin
(d) No fee charged or refunded. The filing office must not charge a fee to file an
affidavit under subsection (b) or a termination statement under subsection (c). The office
must not return any fee paid to file the financing statement identified in the affidavit, whether
or not the financing statement is reinstated under subsection (g).
new text end
new text begin
(e) Notice of termination statement. Within two business days of the date a filing office
files a termination statement under subsection (c), it must send to the secured party of record
for the financing statement the termination statement relates to a notice stating the termination
statement has been filed and becomes effective 20 days after the date the termination
statement was filed. The notice must be sent by certified mail, return receipt requested, to
the address provided for the secured party of record in the financing statement, with a copy
sent by e-mail to the e-mail address provided by the secured party of record, if any.
new text end
new text begin
(f) Administrative review; action for reinstatement. If a secured party believes in
good faith the filed record identified in an affidavit and delivered to the filing office under
subsection (b) was authorized to be filed and was not communicated or caused to be
communicated to the filing office with the intent to harass or defraud, the secured party may
do the following:
new text end
new text begin
(1) before the termination statement takes effect, request that the filing office conduct
an expedited review of the filed record and any documentation provided by the secured
party. The filing office may, as a result of the review, remove from the record the termination
statement the filing office filed under subsection (c) before the termination statement takes
effect; or
new text end
new text begin
(2) at any time, commence an action against the filing office seeking reinstatement of
the financing statement the filed record relates to. The action must be commenced before
the expiration of six months after the date the termination statement was filed under
subsection (c) becomes effective. If the person identified as the debtor is not named as a
defendant in the action, the secured party must send a copy of the complaint to the person
identified as the debtor at the address indicated in the affidavit. The exclusive venue for the
action is the district court for the county where the filing office in which the financing
statement was filed is located. The action must be considered by the court on an expedited
basis.
new text end
new text begin
(g) Office to file notice of action for reinstatement. Within ten days after the date the
filing office is served with process in an action under subsection (f), the filing office must
file in the central filing system a notice indicating the action has been commenced. The
notice must indicate the file number of the initial financing statement it relates to.
new text end
new text begin
(h) Action for reinstatement successful. In an action under subsection (f), if the court
determines the financing statement was authorized to be filed and was not communicated
or caused to be communicated to the filing office with the intent to harass or defraud the
person identified as the debtor, the court must order that the financing statement is reinstated.
If a reinstatement order is issued by the court, the filing office must promptly file a record
that identifies by its file number the initial financing statement the record relates to and
indicates the financing statement has been reinstated.
new text end
new text begin
(i) Effect of reinstatement. Upon the filing of a record reinstating a financing statement
under subsection (h), the effectiveness of the financing statement is reinstated and the
financing statement is considered to never have been terminated under this section. A
continuation statement filed under section 336.9-515(d) after the effective date of a
termination statement filed under subsection (c) becomes effective if the financing statement
is reinstated.
new text end
new text begin
(j) Liability for wrongful filing. In an action under subsection (f), if the court determines
the filed record identified in an affidavit delivered to the filing office under subsection (b)
was not authorized to be filed and was communicated or caused to be communicated to the
filing office with the intent to harass or defraud the person identified as the debtor, the filing
office and the person identified as the debtor may recover from the secured party that filed
the action the costs and expenses, including reasonable attorney fees, that the filing office
and the person identified as the debtor incurred in the action. The recovery is under this
subsection in addition to any recovery the person identified as the debtor is entitled to under
section 336.9-625.
new text end
Sec. 61.
Minnesota Statutes 2020, section 336.9-516, is amended to read:
336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.
(a) What constitutes filing. Except as otherwise provided in subsection (b),
communication of a record to a filing office and tender of the filing fee or acceptance of
the record by the filing office constitutes filing.
(b) Refusal to accept record; filing does not occur. Filing does not occur with respect
to a record that a filing office refuses to accept because:
(1) the record is not communicated by a method or medium of communication authorized
by the filing office. For purposes of filing office authorization, transmission of records using
the Extensible Markup Language (XML) format is authorized by the filing office after the
later of July 1, 2007, or the determination of the secretary of state that the central filing
system is capable of receiving and processing these records;
(2) an amount equal to or greater than the applicable filing fee is not tendered;
(3) the filing office is unable to index the record because:
(A) in the case of an initial financing statement, the record does not provide a name for
the debtor;
(B) in the case of an amendment or information statement, the record:
(i) does not identify the initial financing statement as required by section 336.9-512 or
336.9-518, as applicable; or
(ii) identifies an initial financing statement whose effectiveness has lapsed under section
336.9-515;
(C) in the case of an initial financing statement that provides the name of a debtor
identified as an individual or an amendment that provides a name of a debtor identified as
an individual which was not previously provided in the financing statement to which the
record relates, the record does not identify the debtor's surname; or
(D) in the case of a record filed or recorded in the filing office described in section
336.9-501 (a)(1), the record does not provide a sufficient description of the real property
to which it relates;
(4) in the case of an initial financing statement or an amendment that adds a secured
party of record, the record does not provide a name and mailing address for the secured
party of record;
(5) in the case of an initial financing statement or an amendment that provides a name
of a debtor which was not previously provided in the financing statement to which the
amendment relates, the record does not:
(A) provide a mailing address for the debtor; or
(B) indicate whether the name provided as the name of the debtor is the name of an
individual or an organization;
(6) in the case of an assignment reflected in an initial financing statement under section
336.9-514 (a) or an amendment filed under section 336.9-514 (b), the record does not provide
a name and mailing address for the assignee; deleted text begin or
deleted text end
(7) in the case of a continuation statement, the record is not filed within the six-month
period prescribed by section 336.9-515 (d)deleted text begin .deleted text end new text begin ; or
new text end
new text begin
(8) in the case of an initial financing statement or an amendment that provides a name
of a debtor not previously provided in the financing statement to which the amendment
relates, the office reasonably believes the record was communicated or caused to be
communicated (i) with the intent to harass or defraud the person identified as the debtor, or
(ii) for another unlawful purpose. The office has no duty to form a belief as to whether a
record was communicated or caused to be communicated with the intent to harass or defraud
the person identified as the debtor or for another unlawful purpose, and has no duty to
investigate or ascertain facts relevant to whether the intent or purpose was present. The
secretary of state is not required to return an image of a filing rejected under this clause.
new text end
(c) Rules applicable to subsection (b). For purposes of subsection (b):
(1) a record does not provide information if the filing office is unable to read or decipher
the information; and
(2) a record that does not indicate that it is an amendment or identify an initial financing
statement to which it relates, as required by section 336.9-512, 336.9-514, or 336.9-518, is
an initial financing statement.
(d) Refusal to accept record; record effective as filed record. A record that is
communicated to the filing office with tender of the filing fee, but which the filing office
refuses to accept for a reason other than one set forth in subsection (b), is effective as a filed
record except as against a purchaser of the collateral which gives value in reasonable reliance
upon the absence of the record from the files.
new text begin
(e) Effectiveness of record; purchaser in good faith. A record that the filing office
initially refuses to accept under subsection (b)(8) but later accepts after receiving additional
information is effective as if the office had not initially refused to accept the record, except
as against a purchaser of the collateral that gives value in reasonable reliance upon the
absence of the record from the files.
new text end
Sec. 62.
Minnesota Statutes 2020, section 515B.3-102, is amended to read:
515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.
(a) Except as provided in subsections (b), (c), (d), deleted text begin anddeleted text end (e),new text begin (f), (g), and (h)new text end and subject
to the provisions of the declaration or bylaws, the association shall have the power to:
(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
jeopardize the health, safety or welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or other units; (iii) regulating
or prohibiting animals; (iv) regulating changes in the appearance of the common elements
and conduct which may damage the common interest community; (v) regulating the exterior
appearance of the common interest community, including, for example, balconies and patios,
window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
implementing the articles of incorporation, declaration and bylaws, and exercising the
powers granted by this section; and (vii) otherwise facilitating the operation of the common
interest community;
(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;
(3) hire and discharge managing agents and other employees, agents, and independent
contractors;
(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;
(5) make contracts and incur liabilities;
(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;
(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;
(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;
(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;
(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners;
(11) impose interest and late charges for late payment of assessments and, after notice
and an opportunity to be heard before the board or a committee appointed by it, levy
reasonable fines for violations of the declaration, bylaws, and rules and regulations of the
association;
(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration, resale certificates required by section 515B.4-107, statements
of unpaid assessments, or furnishing copies of association records;
(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;
(14) provide for reasonable procedures governing the conduct of meetings and election
of directors;
(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws; and
(16) exercise any other powers necessary and proper for the governance and operation
of the association.
(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.
new text begin
(c) An association levying a fine pursuant to subsection (a)(11), or an assessment pursuant
to section 515B.3-115(g) or 515B.3-1151(g), must provide written notice to a unit owner
that:
new text end
new text begin
(1) if applicable, indicates the amount, date, and reason for the levy;
new text end
new text begin
(2) identifies the violation for which a fine is being levied and the specific section of
the declaration, bylaws, or rules and regulations allegedly violated;
new text end
new text begin
(3) states that all unpaid fines and assessments are liens which, if not satisfied, could
lead to foreclosure of the unit;
new text end
new text begin
(4) describes the right of the unit owner to be heard by the board or a committee appointed
by the board;
new text end
new text begin
(5) states that if the assessment, fees, charges, or fine is not paid, the amount owed may
increase as a result of the imposition of attorney fees and other costs of collection; and
new text end
new text begin
(6) informs the unit owner that homeownership assistance is available from, and includes
the contact information for, the Minnesota Homeownership Center.
new text end
new text begin
(d) No further collection or enforcement action may be taken by the association for the
15-day period following delivery of the notice required under paragraph (c).
new text end
new text begin
(e) No attorney fees are chargeable or may be collected from a unit owner who disputes
the levy or assessment and prevails at a hearing held by the board or a committee appointed
by the board.
new text end
deleted text begin (c)deleted text end new text begin (f)new text end Notwithstanding subsection (a), powers exercised under this section must comply
with section 500.215.
deleted text begin (d)deleted text end new text begin (g)new text end Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:
(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and
(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection deleted text begin (d)deleted text end new text begin (g)new text end (1) and the proxy expressly references this notice.
deleted text begin (e)deleted text end new text begin (h)new text end The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections deleted text begin (d)deleted text end new text begin (g)new text end (1) and deleted text begin (d)deleted text end new text begin (g)new text end (2) but the association's
complaint in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed
without prejudice unless the association has complied with the requirements of subsection
deleted text begin (d)deleted text end new text begin (g)new text end within 90 days of the association's commencement of the complaint in an intervention
or the assertion of the counterclaim, crossclaim, or third-party claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2023.
new text end
Sec. 63.
Minnesota Statutes 2020, section 549.30, subdivision 3, is amended to read:
Subd. 3.
Applicable law.
"Applicable law" means: (1) the laws of the United States; (2)
the laws of this state, including principles of equity applied in the courts of this state; and
(3) the laws of any other jurisdiction: (i) which is the domicile of the payee deleted text begin or any other
interested partydeleted text end ; (ii) under whose laws a structured settlement agreement was approved by
a court or responsible administrative authority; or (iii) in whose courts a settled claim was
pending when the parties entered into a structured settlement agreement.
Sec. 64.
Minnesota Statutes 2020, section 549.30, is amended by adding a subdivision to
read:
new text begin Subd. 3a. new text end
new text begin Assignee. new text end
new text begin
"Assignee" means a person acquiring or proposing to acquire
structured settlement payment rights from a transferee.
new text end
Sec. 65.
Minnesota Statutes 2020, section 549.30, is amended by adding a subdivision to
read:
new text begin Subd. 5a. new text end
new text begin Effective equivalent annual interest rate. new text end
new text begin
"Effective equivalent annual
interest rate" means the annualized rate of interest on the net advance amount, calculated
by treating the transferred settlement payments as if the transferred settlement payments
were installment payments on a loan, with each payment applied first to the accrued unpaid
interest and then to the principal.
new text end
Sec. 66.
Minnesota Statutes 2020, section 549.30, subdivision 6, is amended to read:
Subd. 6.
Independent professional advice.
"Independent professional advice" means
advice of an attorney, certified public accountant, actuary,new text begin financial adviser,new text end or other new text begin licensed
new text end professional adviser: (1) who is engaged by a payee to render advice concerning the legal,
tax, and financial implications of a transfer of structured settlement payment rights; (2)new text begin to
whom the payee is not referred directly or indirectly andnew text end who is not in any manner affiliated
with or compensated by the transferee of the transfer; and (3) whose compensation for
providing the advice is not affected by whether a transfer occurs or does not occur.
Sec. 67.
Minnesota Statutes 2020, section 549.30, subdivision 15, is amended to read:
Subd. 15.
Structured settlement payment rights.
"Structured settlement payment
rights" means rights to receive periodic payments, including lump-sum payments, under a
structured settlement, whether from the settlement obligor or the annuity issuer, where: (1)
the payee deleted text begin or any other interested partydeleted text end is domiciled in the state; (2) the structured settlement
agreement was approved by a court or responsible administrative authority in the state; or
(3) the settled claim was pending before the courts of this state when the parties entered
into the structured settlement agreement.
Sec. 68.
Minnesota Statutes 2020, section 549.30, subdivision 19, is amended to read:
Subd. 19.
Transferee.
"Transferee" means a person deleted text begin who is receiving or will receivedeleted text end new text begin
acquiring or proposing to acquirenew text end structured settlement payment rights deleted text begin resulting from a
transferdeleted text end .
Sec. 69.
Minnesota Statutes 2020, section 549.31, is amended to read:
549.31 CONDITIONS TO TRANSFERS OF STRUCTURED SETTLEMENT
PAYMENT RIGHTS AND STRUCTURED SETTLEMENT AGREEMENTS.
Subdivision 1.
Generally.
No direct or indirect transfer of structured settlement payment
rights is effective and no structured settlement obligor or annuity issuer is required to make
a payment directly or indirectly to a transferee of structured settlement payment rights unless
the transfer has been authorized in advance in a final order of a court of competent jurisdiction
or responsible administrative authority, based on the court's or responsible administrative
authority's written express findingsnew text begin , after notice and hearing,new text end that:
(a) the transfer complies with the requirements of sections 549.31 to 549.34 and will
not contravene other applicable law;
(b) not less than ten days before the date on which the payee first incurred an obligation
with respect to the transfer, the transferee has provided to the payeenew text begin , an attorney representing
the payee or advising the payee, or any other professional known to be advising the payeenew text end
a disclosure statement in bold type, no smaller than 14 points, specifying:
(1) the amounts and due dates of the structured settlement payments to be transferred;
(2) the aggregate amount of the payments;
(3) the discounted present value of the payments, together with the discount rate used
in determining the discounted present value;
(4) the gross amount payable to the payee in exchange for the payments;
(5) an itemized listing of all brokers' commissions, service charges, application fees,
processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary
fees, and other commissions, fees, costs, expenses, andnew text begin any othernew text end charges payable by the
payee or deductible from the gross amount otherwise payable to the payeenew text begin , and verification
that the total fees and charges do not exceed two percent of the total compensation payable
to the payeenew text end ;
(6) the net amount payable to the payee after deduction of all commissions, fees, costs,
expenses, and charges described in clause (5);
(7) the quotient, expressed as a percentage, obtained by dividing the net payment amount
by the discounted present value of the payments; deleted text begin and
deleted text end
(8) the amount of any penalty and the aggregate amount of any liquidated damages,
including penalties, payable by the payee in the event of a breach of the transfer agreement
by the payee;
new text begin
(9) the effective equivalent annual interest rate, disclosed in the following form: "Based
on the net amount that you will receive from us and the amounts and timing of the structured
settlement payments you are transferring to us, in effect you will be paying us at an interest
rate of ....... % per year"; and
new text end
new text begin
(10) that the payee is advised to obtain independent professional advice about the transfer,
disclosed in the following form: "Before agreeing to sell any of your payment rights, you
should seek guidance from an attorney, accountant, actuary, financial adviser, or tax or
other licensed professional adviser who is not associated with the buyer. It is illegal for the
buyer to refer you to anyone for this advice and for anyone associated with or paid for by
the buyer to give you advice.";
new text end
(c)new text begin based on the files, records, disclosures, and evidence presented at the hearing,new text end the
deleted text begin payeedeleted text end new text begin courtnew text end has established that thenew text begin financial terms of the proposednew text end transfernew text begin are fair and
reasonable and the proposed transfernew text end is in the best interests of the payee and the payee's
dependentsdeleted text begin ;deleted text end new text begin , after considering:
new text end
new text begin
(1) the payee's age, legal knowledge, and apparent maturity level, and any other relevant
factors and the stated purpose of the transfer;
new text end
new text begin
(2) whether the payee has the capacity to fully understand the financial terms and
implications of the transfer agreement;
new text end
new text begin
(3) whether the payee is employed or employable;
new text end
new text begin
(4) the payee's ability to meet (i) ongoing and known future living expenses, including
medical expenses, and (ii) the current and future financial obligations of the payee and the
payee's dependents, including child support and spousal maintenance;
new text end
new text begin
(5) whether the payee completed previous transactions involving the payee's structured
settlement payments, and the timing, size, stated purpose, and actual use of the proceeds;
new text end
new text begin
(6) the impact of the proposed transfer on current or future eligibility of the payee or
the payee's dependents for public benefits; and
new text end
new text begin
(7) any other factors or facts the court determines are relevant and should be considered;
new text end
(d) the payee hasnew text begin or has notnew text end received independent professional advice regarding the
legal, tax, and financial implications of the transfer;
(e) the transferee has given written notice of the transferee's name, address, and taxpayer
identification number to the annuity issuer and the structured settlement obligor and has
filed a copy of the notice with the court or responsible administrative authority; and
(f) that the transfer agreement provides that any disputes between the parties will be
governed, interpreted, construed, and enforced in accordance with the laws of this state and
that the domicile state of the payee is the proper place of venue to bring any cause of action
new text begin in district court new text end arising out of a breach of the agreement. The transfer agreement must also
provide that the parties agree to the jurisdiction of any court of competent jurisdiction located
in this statenew text begin and that no predispute arbitration is required by the agreementnew text end .
deleted text begin If the transfer would contravene the terms of the structured settlement, upon the filing
of a written objection by any interested party and after considering the objection and any
response to it, the court or responsible administrative authority may grant, deny, or impose
conditions upon the proposed transfer as the court or responsible administrative authority
deems just and proper under the facts and circumstances in accordance with established
principles of law.deleted text end Any order approving a transfer must require that the transferee indemnify
the annuity issuer and the structured settlement obligor for any liability including reasonable
costs and attorney fees arising from compliance by the issuer or obligor with the order of
the court or responsible administrative authority.
new text begin Subd. 1a. new text end
new text begin Appointment of evaluator. new text end
new text begin
The court may, in its discretion in any case,
appoint an attorney to make an independent assessment and advise the court whether the
financial terms of the proposed transfer agreement are fair and reasonable, and whether the
transfer is in the best interests of the payee and the payee's dependents. The evaluator must
present the findings of the evaluation to the court at or prior to a hearing on the application.
All costs and reasonable fees for the evaluator shall be borne by the transferee.
new text end
new text begin Subd. 1b. new text end
new text begin
Obligations of annuity issuers and structured settlement obligors; liability
of transferees.
new text end
new text begin
(a) The annuity issuer and the structured settlement obligor may rely on the
court order approving the transfer of structured settlement payment rights in redirecting
periodic payments and, as to all parties except the transferee or an assignee, be discharged
and released from any and all liability for the redirected payments. The failure of any party
to the transfer to comply with sections 549.30 to 549.34 or with the court order approving
the transfer has no effect on the discharge and release.
new text end
new text begin
(b) The transferee is liable to the structured settlement obligor and annuity issuer:
new text end
new text begin
(1) if the transfer contravenes the terms of the structured settlement, and for any taxes
incurred by the structured settlement obligor or annuity issuer resulting from the transfer;
or
new text end
new text begin
(2) for any other liabilities or costs, including reasonable attorney fees, arising from
compliance by the annuity issuer or the structured settlement obligor with the court order
approving the transfer, or from the failure of any party to the transfer to comply with sections
549.30 to 549.34.
new text end
new text begin
(c) Compliance with the requirements in sections 549.30 to 549.34 regarding any transfer
of structured settlement payment rights is solely the responsibility of the transferee, and
neither the annuity issuer nor the structured settlement obligor bears any responsibility for,
or any liability arising from, the failure to comply with the requirements or failure to fulfill
the conditions of the transfer.
new text end
new text begin
(d) Neither the annuity issuer nor the structured settlement obligor is required to divide
any periodic payment between the payee and any transferee or assignee or between two or
more transferees or assignees.
new text end
Subd. 2.
Unenforceable confessions of judgment.
A provision in a transfer agreement
giving a transferee power to confess judgment against a payee is unenforceable deleted text begin to the extent
the amount of the judgment would exceed the amount paid by the transferee to the payee,
less any payments received from the structured settlement obligor or the payeedeleted text end .
Subd. 3.
Initial disclosure of structured settlement terms.
In negotiating a structured
settlement of claims brought by or on behalf of a claimant who is domiciled in this state,
the structured settlement obligor shall disclose in writing to the claimant or the claimant's
legal representative all of the following information that is not otherwise specified in the
structured settlement agreement:
(1) the amounts and due dates of the periodic payments to be made under the structured
settlement agreement. In the case of payments that will be subject to periodic percentage
increases, the amounts of future payments may be disclosed by identifying the base payment
amount, the amount and timing of scheduled increases, and the manner in which increases
will be compounded;
(2) the amount of the premium payable to the annuity issuer;
(3) the discounted present value of all periodic payments that are not life-contingent,
together with the discount rate used in determining the discounted present value;
(4) the nature and amount of any cost that may be deducted from any of the periodic
payments;
(5) where applicable, that any transfer of the periodic payments is prohibited by the
terms of the structured settlement and may otherwise be prohibited or restricted under
applicable law; and
(6) that any transfer of the periodic payments by the claimant may subject the claimant
to serious adverse tax consequences.
Sec. 70.
new text begin
[549.315] DISCOUNT RATE.
new text end
new text begin
The discount rate used in determining the net amount payable to the payee under the
transfer agreement may not exceed an annual percentage rate of prime plus five percentage
points calculated as if the net amount payable to the payee was the principal of a consumer
loan made by the transferee to the payee, and if the structured settlement payments to be
transferred to the transferee were the payee's payments of principal plus interest on such
loan. For purposes of this subdivision, the prime rate shall be as reported by the Federal
Reserve Statistical Release H.15 on the first Monday of the month in which the transfer
agreement is signed by both the payee and the transferee, except when the transfer agreement
is signed prior to the first Monday of that month then the prime rate shall be as reported by
the Federal Reserve Statistical Release H.15 on the first Monday of the preceding month.
new text end
Sec. 71.
Minnesota Statutes 2020, section 549.32, is amended to read:
549.32 deleted text begin JURISDICTIONdeleted text end new text begin APPLICATIONnew text end ; PROCEDURE FOR APPROVAL OF
TRANSFERS.
Subdivision 1.
Jurisdictionnew text begin ; venuenew text end .
deleted text begin The district court has nonexclusive jurisdiction
overdeleted text end new text begin (a)new text end An application for authorization under section 549.31 of a transfer of structured
settlement payment rightsnew text begin must be filed in the district court in the county in which the payee
residesnew text end .
new text begin
(b) The payee must appear in person at the hearing unless the court determines that good
cause exists to excuse the payee from appearing in person.
new text end
Subd. 2.
Notice.
Not less than 20 days before the scheduled hearing on an application
for authorization of a transfer of structured settlement payment rights under section 549.31,
the transferee shall file with the court or responsible administrative authority and serve on:
any other government authority that previously approved the structured settlement; and all
interested parties, a notice of the proposed transfer and the application for its authorization.
The notice must include:
(1) a copy of the transferee's application to the court or responsible administrative
authoritynew text begin , which must contain the payee's name and agenew text end ;
(2) a copy of the transfer agreement;
(3) a copy of the disclosure statement required under section 549.31, subdivision 1,
paragraph (b)new text begin , and proof that the disclosure statement has been delivered to the payee, to
an attorney representing or advising the payee, and to any other professional known to be
advising the payeenew text end ;
(4) notification that an interested party is entitled to support, oppose, or otherwise respond
to the transferee's application, either in person or by counsel, by submitting written comments
to the court or responsible administrative authority or by participating in the hearing;
(5) notification of the time and place of the hearing and notification of the manner in
which and the time by which written responses to the application must be filed, in order to
be considered by the court or responsible administrative authority. Written responses to the
application must be filed within 15 days after service of the transferee's notice; and
(6) notification of the date and deleted text begin judicial districtdeleted text end new text begin court, and detailsnew text end of any prior application
for transfer filed by the transfereenew text begin , an affiliate or assignee of the transferee, or any other
transfereenew text end relating to a prior proposed transfer with the payee, including whether the prior
application was granted or denied. If any prior application was granted, the notice shall
provide the amount and due dates of any structured settlement payments that were transferred,
the aggregate amount of the payments, the discounted present value of the payments, and
the gross amount that was payable to the payee in exchange for the payments.
Sec. 72.
new text begin
[549.325] PROHIBITED PRACTICES.
new text end
new text begin Subdivision 1. new text end
new text begin Prohibitions. new text end
new text begin
No transferee shall:
new text end
new text begin
(1) represent the payee;
new text end
new text begin
(2) intervene in a pending structured settlement transfer proceeding, if the transferee is
not a party to such proceeding or an interested party relative to the proposed transfer that
is the subject of the pending structured settlement transfer proceeding;
new text end
new text begin
(3) offer or provide any gift, loan, extension of credit, or advance as an inducement to
enter into a transfer agreement or pay a fee to any person to refer a potential payee to the
transferee or any affiliate of the transferee;
new text end
new text begin
(4) communicate with a payee or a person associated with the payee with excessive
frequency, at unusual hours, or in any other manner as reasonably may be expected to abuse
or harass the payee in connection with a proposed transfer;
new text end
new text begin
(5) solicit a prospective payee through the conveyance of a document in any way
resembling a check or other form of payment;
new text end
new text begin
(6) provide in a transfer agreement or related document that gives to the transferee the
first choice or option to purchase any remaining structured settlement rights belonging to
the payee; or
new text end
new text begin
(7) solicit or petition for a transfer of a structured settlement from a minor or a parent
or guardian of a minor.
new text end
new text begin Subd. 2. new text end
new text begin Enforcement. new text end
new text begin
A violation of this section is a deceptive practice in violation of
section 325F.69.
new text end
Sec. 73.
Minnesota Statutes 2020, section 549.34, is amended to read:
549.34 CONSTRUCTION.
new text begin (a) new text end Nothing contained in sections 549.30 to 549.34 may be construed to authorize the
transfer of workers' compensation payment rights in contravention of applicable law or to
give effect to the transfer of workers' compensation payment rights that is invalid under
applicable law.
new text begin
(b) No transfer of structured settlement payment rights shall extend to any payments
that are life contingent unless, prior to the date on which the payee signs the transfer
agreement, the transferee has established and has agreed to maintain procedures reasonably
satisfactory to the annuity issuer and the structured settlement obligor for:
new text end
new text begin
(1) periodically confirming the payee's survival; and
new text end
new text begin
(2) giving the annuity issuer and the structured settlement obligor prompt written notice
in the event of the payee's death.
new text end
Sec. 74. new text begin REVISOR INSTRUCTION.
new text end
new text begin
(a) The revisor of statutes shall change the term "self-study course" to "on-demand
course" wherever it appears in Minnesota Statutes, chapter 45. The revisor shall also make
grammatical changes related to the change in term.
new text end
new text begin
(b) The revisor of statutes shall change the term "classroom course" to "live course"
wherever it appears in Minnesota Statutes, chapter 45. The revisor shall also make
grammatical changes related to the change in term.
new text end
Sec. 75. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2020, section 45.25, subdivisions 2a and 14,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2020, section 60A.033, subdivision 3,
new text end
new text begin
is repealed.
new text end
ARTICLE 3
INSURANCE
Section 1.
Minnesota Statutes 2020, section 61A.02, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Regulatory flexibility. new text end
new text begin
(a) Notwithstanding any other requirement of this
section, the commissioner may authorize long-term care insurance to be sold as part of or
in conjunction with life insurance, if the proposed policy:
new text end
new text begin
(1) is not permitted under current law;
new text end
new text begin
(2) represents an innovative and reasonable approach to provide both life insurance and
long-term care insurance;
new text end
new text begin
(3) provides reasonable coverage; and
new text end
new text begin
(4) is in the best interest of insureds.
new text end
new text begin
(b) The insurer filing for authorization under this section must demonstrate that the
proposed policy satisfies the requirements of paragraph (a).
new text end
Sec. 2.
Minnesota Statutes 2021 Supplement, section 62J.26, subdivision 2, is amended
to read:
Subd. 2.
Evaluation process and content.
(a) The commissioner, in consultation with
the commissioners of health and management and budget, must evaluate all mandated health
benefit proposals as provided under subdivision 3.
(b) The purpose of the evaluation is to provide the legislature with a complete and timely
analysis of all ramifications of any mandated health benefit proposal. The evaluation must
include, in addition to other relevant information, the following to the extent applicable:
(1) scientific and medical information on the mandated health benefit proposal, on the
potential for harm or benefit to the patient, and on the comparative benefit or harm from
alternative forms of treatment, and must include the results of at least one professionally
accepted and controlled trial comparing the medical consequences of the proposed therapy,
alternative therapy, and no therapy;
(2) public health, economic, and fiscal impacts of the mandated health benefit proposal
on persons receiving health services in Minnesota, on the relative cost-effectiveness of the
proposal, and on the health care system in general;
(3) the extent to which the treatment, service, equipment, or drug is generally utilized
by a significant portion of the population;
(4) the extent to which insurance coverage for the mandated health benefit proposal is
already generally available;
(5) the extent to which the mandated health benefit proposal, by health plan category,
would apply to the benefits offered to the health plan's enrollees;
(6) the extent to which the mandated health benefit proposal will increase or decrease
the cost of the treatment, service, equipment, or drug;
(7) the extent to which the mandated health benefit proposal may increase enrollee
premiums; and
(8) if the proposal applies to a qualified health plan as defined in section 62A.011,
subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
using commercial market reimbursement rates in accordance with Code of Federal
Regulations, title 45, section 155.70.
(c) The commissioner shall consider actuarial analysis done by health plan companies
and any other proponent or opponent of the mandated health benefit proposal in determining
the cost of the proposal.
(d) The commissioner must summarize the nature and quality of available information
on these issues, and, if possible, must provide preliminary information to the public. The
commissioner may conduct research on these issues or may determine that existing research
is sufficient to meet the informational needs of the legislature. The commissioner may seek
the assistance and advice of researchers, community leaders, or other persons or organizations
with relevant expertise.
new text begin
(e) The commissioner shall not make public any information submitted under this section
if that information is trade secret information under section 13.37, subdivision 1, paragraph
(b). Trade secret information submitted by a health plan company or other proponent or
opponent of the mandated health benefit proposal must be clearly and specifically identified
as trade secret information. If the commissioner disagrees with the classification of the
information as trade secret, the commissioner must notify in writing the health plan company
or other proponent or opponent of the mandated health benefit proposal that the information
will be made public at least 30 days prior to the information being made public.
new text end
new text begin
(f) When requesting information from a health plan company or other proponent or
opponent of the mandated health benefit proposal pursuant to this section, the commissioner
must provide at least 60 days' notice.
new text end
Sec. 3.
Minnesota Statutes 2020, section 62Q.733, subdivision 1, is amended to read:
Sec. 4.
Minnesota Statutes 2020, section 62Q.735, subdivision 1, is amended to read:
Subdivision 1.
Contract disclosure.
(a) Before requiring a health care provider to sign
a contract, a health plan company shall give to the provider a complete copy of the proposed
contract, including:
(1) all attachments and exhibits;
(2) operating manuals;
(3) a general description of the health plan company's health service coding guidelines
and requirement for procedures and diagnoses with modifiers, and multiple procedures; and
(4) all guidelines and treatment parameters incorporated or referenced in the contract.
(b) The health plan company shall make available to the provider the fee schedule or a
method or process that allows the provider to determine the fee schedule for each health
care service to be provided under the contract.
(c) deleted text begin Notwithstanding paragraph (b), a health plan company that is a dental plan
organization, as defined in section 62Q.76, shall disclose information related to the individual
contracted provider's expected reimbursement from the dental plan organization.deleted text end Nothing
in this section requires a dental plan organization to disclose the plan's aggregate maximum
allowable fee table used to determine other providers' fees. The contracted provider must
not release this information in any way that would violate any state or federal antitrust law.
Sec. 5.
Minnesota Statutes 2020, section 62Q.735, subdivision 5, is amended to read:
Subd. 5.
Fee schedules.
deleted text begin (a)deleted text end A health plan company shall provide, upon request, any
additional fees or fee schedules relevant to the particular provider's practice beyond those
provided with the renewal documents for the next contract year to all participating providers,
excluding claims paid under the pharmacy benefit. Health plan companies may fulfill the
requirements of this section by making the full fee schedules available through a secure
web portal for contracted providers.
deleted text begin
(b) A dental organization may satisfy paragraph (a) by complying with section 62Q.735,
subdivision 1, paragraph (c).
deleted text end
Sec. 6.
new text begin
[62Q.7391] HEALTH CARE PROVIDER CONTRACT TERMINATION.
new text end
new text begin Subdivision 1. new text end
new text begin Termination for cause. new text end
new text begin
(a) A contract between a health care provider
and a health plan company may be terminated by the health plan company for cause only
if the contract includes an appeal process for the provider to appeal the termination. The
health plan company must provide the provider with written notice of termination that
includes:
new text end
new text begin
(1) the reasons for the termination;
new text end
new text begin
(2) the date upon which the termination is effective; and
new text end
new text begin
(3) a statement that the provider has the right to appeal the termination decision and a
description of the appeal process available to the provider to request an appeal.
new text end
new text begin
(b) The process must permit the provider with the opportunity to request an appeal and
present any relevant documents and arguments against termination. The process must also
include (1) an internal review, and (2) an external review that occurs if the internal review
upholds the decision to terminate. The external review must be conducted by an independent
external review entity agreed to by the provider. The decision of the external review entity
is final. If the external review entity determines that the reason for termination is not
supported the provider's contract with the health plan company must be reinstated.
new text end
new text begin
(c) A health plan company regulated by the commissioner of commerce must submit to
the commissioner of commerce for approval the appeal process required under this
subdivision. A health plan company regulated by the commissioner of health must submit
to the commissioner of health for approval the appeal process required under this subdivision.
If the health plan company fails to submit the process or the appeal process is not approved,
the commissioner of commerce or commissioner of health, as appropriate, may take
regulatory action against the health plan company.
new text end
new text begin Subd. 2. new text end
new text begin Termination not for cause. new text end
new text begin
A health plan company is prohibited from
terminating a contract with a health care provider without cause.
new text end
Sec. 7.
Minnesota Statutes 2020, section 62Q.76, is amended by adding a subdivision to
read:
new text begin Subd. 9. new text end
new text begin Third party. new text end
new text begin
"Third party" means a person or entity that enters into a contract
with a dental organization or with another third party to gain access to the dental care services
or contractual discounts under a dental provider contract. Third party does not include an
enrollee of a dental organization or an employer or other group for whom the dental
organization provides administrative services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2023, and applies to dental
plans and dental provider agreements offered, issued, or renewed on or after that date.
new text end
Sec. 8.
Minnesota Statutes 2020, section 62Q.78, is amended by adding a subdivision to
read:
new text begin Subd. 7. new text end
new text begin Network leasing. new text end
new text begin
(a) A dental organization may grant a third party access to
a dental provider contract, or a provider's dental care services or contractual discounts
provided pursuant to a dental provider contract, if at the time the dental provider contract
is entered into or renewed the dental organization allows a dentist to choose not to participate
in third-party access to the dental provider contract, without any penalty to the dentist. The
third-party access provision of the dental provider contract must be clearly identified. A
dental organization must not grant a third party access to the dental provider contract of any
dentist who does not participate in third-party access to the dental provider contract.
new text end
new text begin
(b) Notwithstanding paragraph (a), if a dental organization exists solely for the purpose
of recruiting dentists for dental provider contracts that establish a network to be leased to
third parties, the dentist waives the right to choose whether to participate in third-party
access.
new text end
new text begin
(c) A dental organization may grant a third party access to a dental provider contract,
or a dentist's dental care services or contractual discounts under a dental provider contract,
if the following requirements are met:
new text end
new text begin
(1) the dental organization lists all third parties that may have access to the dental provider
contract on the dental organization's website, which must be updated at least once every 90
days;
new text end
new text begin
(2) the dental provider contract states that the dental organization may enter into an
agreement with a third party that would allow the third party to obtain the dental
organization's rights and responsibilities as if the third party were the dental organization,
and the dentist chose to participate in third-party access at the time the dental provider
contract was entered into; and
new text end
new text begin
(3) the third party accessing the dental provider contract agrees to comply with all
applicable terms of the dental provider contract.
new text end
new text begin
(d) A dentist is not bound by and is not required to perform dental care services under
a dental provider contract granted to a third party in violation of this section.
new text end
new text begin
(e) This subdivision does not apply when:
new text end
new text begin
(1) the dental provider contract is for dental services provided under a public health plan
program, including but not limited to medical assistance, MinnesotaCare, Medicaid, or
Medicare Advantage; or
new text end
new text begin
(2) access to a dental provider contract is granted to a dental organization, an entity
operating in accordance with the same brand licensee program as the dental organization
or other entity, or to an entity that is an affiliate of the dental organization, provided the
entity agrees to substantially similar terms and conditions of the originating dental provider
contract between the dental organization and the dentist or dental clinic. A list of the dental
organization's affiliates must be posted on the dental organization's website.
new text end
Sec. 9.
Minnesota Statutes 2020, section 62Q.79, is amended by adding a subdivision to
read:
new text begin Subd. 7. new text end
new text begin Method of payments. new text end
new text begin
A dental provider contract must include a method of
payment for dental care services in which no fees associated with the method of payment,
including credit card fees and fees related to payment in the form of digital or virtual
currency, are incurred by the dentist or dental clinic. Any fees that may be incurred from a
payment must be disclosed to a dentist prior to entering into or renewing a dental provider
contract. For purposes of this section, fees related to a provider's electronic claims processing
vendor, financial institution, or other vendor used by a provider to facilitate the submission
of claims are excluded.
new text end
Sec. 10.
Minnesota Statutes 2020, section 72A.20, is amended by adding a subdivision to
read:
new text begin Subd. 41. new text end
new text begin
Discrimination based on status as a living organ or bone marrow donor
prohibited.
new text end
new text begin
A life insurance, long-term care insurance, or disability insurance carrier is
prohibited from declining or limiting coverage of an insured or otherwise discriminating in
the premium rating, offering, issuance, cancellation, amount of coverage, or any other
condition based solely upon the status of an insured as a living organ or bone marrow donor
and without additional actuarial risks.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for insurance policies issued and renewed
on or after August 1, 2022.
new text end
Sec. 11.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Cash compensation. new text end
new text begin
"Cash compensation" means any discount, concession
fee, service fee, commission, sales charge, loan, override, or cash benefit received by an
insurance producer from an insurer, intermediary, or consumer in connection with
recommending or selling an annuity.
new text end
Sec. 12.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 3b. new text end
new text begin Consumer profile information. new text end
new text begin
"Consumer profile information" means
information that is reasonably appropriate to determine whether a recommendation addresses
the consumer's financial situation, insurance needs, and financial objectives, including at a
minimum the following:
new text end
new text begin
(1) age;
new text end
new text begin
(2) annual income and anticipated material changes in annual income;
new text end
new text begin
(3) financial situation and needs, including debts and other obligations, and anticipated
material changes in financial situation and needs;
new text end
new text begin
(4) financial experience;
new text end
new text begin
(5) insurance needs;
new text end
new text begin
(6) financial objectives;
new text end
new text begin
(7) intended use of the annuity;
new text end
new text begin
(8) financial time horizon;
new text end
new text begin
(9) existing assets or financial products, including investment, annuity, and insurance
holdings, and anticipated material changes in existing assets;
new text end
new text begin
(10) liquidity needs and anticipated material changes in liquidity needs;
new text end
new text begin
(11) liquid net worth and anticipated material changes in liquid net worth;
new text end
new text begin
(12) risk tolerance, including but not limited to willingness to accept nonguaranteed
elements in the annuity;
new text end
new text begin
(13) financial resources used to fund the annuity;
new text end
new text begin
(14) tax status; and
new text end
new text begin
(15) whether or not the consumer has a reverse mortgage.
new text end
Sec. 13.
Minnesota Statutes 2020, section 72A.2031, subdivision 8, is amended to read:
Subd. 8.
Insurance producer.
"Insurance producer" means a person required to be
licensed under the laws of this state to sell, solicit, or negotiate insurance, including annuities.new text begin
For purposes of sections 72A.203 to 72A.2036, insurance producer includes an insurer
where no insurance producer is involved.
new text end
Sec. 14.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 8a. new text end
new text begin Intermediary. new text end
new text begin
"Intermediary" means an entity contracted directly with an
insurer or with another entity contracted with an insurer to facilitate the sale of the insurer's
annuities by insurance producers.
new text end
Sec. 15.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 8b. new text end
new text begin Material conflict of interest. new text end
new text begin
"Material conflict of interest" means a financial
interest of the insurance producer in the sale of an annuity that a reasonable person would
expect to influence the impartiality of a recommendation. The payment of compensation,
including both cash and noncash compensation, does not in and of itself constitute a material
conflict of interest.
new text end
Sec. 16.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 8c. new text end
new text begin Noncash compensation. new text end
new text begin
"Noncash compensation" means any form of
compensation that is not cash compensation, including but not limited to health insurance,
office rent, office support, and retirement benefits.
new text end
Sec. 17.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 8d. new text end
new text begin Nonguaranteed elements. new text end
new text begin
"Nonguaranteed elements" means the premiums
and credited interest rates, including any bonus, benefits, values, dividends, noninterest-based
credits, charges, or elements of formulas used to determine any of the elements in this
subdivision, that are subject to company discretion and are not guaranteed at issue. An
element is considered nonguaranteed if any of the underlying nonguaranteed elements are
used in the element's calculation.
new text end
Sec. 18.
Minnesota Statutes 2020, section 72A.2031, is amended by adding a subdivision
to read:
new text begin Subd. 8e. new text end
new text begin Recommendation. new text end
new text begin
"Recommendation" means advice provided by an insurance
producer to an individual consumer that was intended to result or does result in a purchase,
exchange, or replacement of an annuity in accordance with the advice rendered.
Recommendation does not include a general communication to the public, generalized
customer services, assistance or administrative support, general educational information
and tools, prospectuses, or other product and sales material.
new text end
Sec. 19.
Minnesota Statutes 2020, section 72A.2031, subdivision 10, is amended to read:
Subd. 10.
Replacement.
"Replacement" means a transaction in which a new deleted text begin policy or
contractdeleted text end new text begin annuitynew text end is to be purchaseddeleted text begin ,deleted text end and it is known or should be known to the proposing
new text begin insurance new text end producerdeleted text begin ,deleted text end or the proposing insurer, whether or not deleted text begin there isdeleted text end an insurance producernew text begin
is involvednew text end , that by reason of the transactiondeleted text begin ,deleted text end an existing new text begin annuity or other insurance new text end policy
deleted text begin or contractdeleted text end has been or is to be any of the following:
(1) lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing
insurer, or otherwise terminated;
(2) converted to reduced paid-up insurance, continued as extended term insurance, or
otherwise reduced in value by the use of nonforfeiture benefits or other policy values;
(3) amended so as to effect either a reduction in benefits or in the term for which coverage
would otherwise remain in force or for which benefits would be paid;
(4) reissued with any reduction in cash value; or
(5) used in a financed purchase.
Sec. 20.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Best interest obligations. new text end
new text begin
An insurance producer, when recommending an
annuity, shall act in the best interest of the consumer under the circumstances known at the
time the recommendation is made. An insurance producer shall not place the insurance
producer's or the insurer's financial interest ahead of the consumer's interest. An insurance
producer has acted in the best interest of the consumer if the insurance producer has satisfied
obligations regarding care, disclosure, conflict of interest, and documentation specified in
subdivisions 1b, 1c, 1d, and 1e.
new text end
Sec. 21.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1b. new text end
new text begin Care obligation. new text end
new text begin
(a) The insurance producer, in making a recommendation,
shall exercise reasonable diligence, care, and skill to:
new text end
new text begin
(1) know the consumer's financial situation, insurance needs, and financial objectives;
new text end
new text begin
(2) understand the available recommendation options after making a reasonable inquiry
into the options available to the insurance producer;
new text end
new text begin
(3) have a reasonable basis to believe the recommended option effectively addresses the
consumer's financial situation, insurance needs, and financial objectives over the life of the
product, as evaluated in light of the consumer profile information; and
new text end
new text begin
(4) communicate the basis or rationale supporting the recommendation.
new text end
new text begin
(b) The requirements under paragraph (a) include making reasonable efforts to obtain
consumer profile information from the consumer prior to recommending an annuity.
new text end
new text begin
(c) Paragraph (a) requires an insurance producer to consider the types of products the
insurance producer is authorized and licensed to recommend or sell that address the
consumer's financial situation, insurance needs, and financial objectives. This paragraph
does not require an insurance producer to analyze or consider (1) any products outside the
insurance producer's authority and license, or (2) other possible alternative products or
strategies available in the market at the time of the recommendation. Insurance producers
shall be held to standards applicable to insurance producers with similar authority and
licensure.
new text end
new text begin
(d) This subdivision does not create a fiduciary obligation or relationship and only creates
a statutory obligation under sections 72A.203 to 72A.2036.
new text end
new text begin
(e) The consumer profile information; characteristics of the insurer; and product costs,
rates, benefits, and features are the factors generally relevant in determining whether an
annuity effectively addresses the consumer's financial situation, insurance needs, and financial
objectives. The level of importance of each factor under paragraph (a) may vary depending
on the facts and circumstances of a particular case. Each factor must not be considered in
isolation.
new text end
new text begin
(f) The requirements under paragraph (a) include having a reasonable basis to believe
the consumer benefits from certain features of the annuity, including but not limited to
annuitization, death or living benefit, or other insurance-related features.
new text end
new text begin
(g) Paragraph (a) applies to the particular annuity as a whole and the underlying
subaccounts to which funds are allocated at the time of the purchase or exchange of an
annuity, riders, and similar product enhancements, if any.
new text end
new text begin
(h) Paragraph (a) does not require that the annuity with the lowest onetime or
multiple-occurrence compensation structure must be recommended.
new text end
new text begin
(i) Paragraph (a) does not require the insurance producer to assume ongoing monitoring
obligations. An ongoing monitoring obligation may be separately owed under the terms of
a fiduciary, consulting, investment advising, or financial planning agreement between the
consumer and the insurance producer.
new text end
new text begin
(j) When an annuity is being exchanged or replaced, the insurance producer shall consider
the whole transaction, which includes considering whether:
new text end
new text begin
(1) the consumer incurs a surrender charge; is subject to the commencement of a new
surrender period; loses existing benefits such as death, living, or other contractual benefits;
or is subject to increased fees, investment advisory fees, or charges for riders and similar
product enhancements;
new text end
new text begin
(2) the replacing product substantially benefits the consumer in comparison to the replaced
product over the life of the product; and
new text end
new text begin
(3) the consumer had another annuity exchange or replacement and, in particular, an
annuity exchange or replacement within the preceding 60 months.
new text end
new text begin
(k) If a person is 65 years of age or older, neither an insurance producer nor an insurer
shall recommend replacing or exchanging an annuity that requires the insured to pay a
surrender charge for the annuity being replaced or exchanged if the replacement or exchange
does not confer a substantial financial benefit over the life of the annuity to the consumer,
so that a reasonable person would believe the purchase is unnecessary.
new text end
new text begin
(l) Nothing in sections 72A.203 to 72A.2036 requires an insurance producer to obtain
any license other than an insurance producer license with the appropriate line of authority
to sell, solicit, or negotiate insurance in Minnesota, including but not limited to any securities
license in order to fulfill the duties and obligations contained in sections 72A.203 to
72A.2036, provided that the insurance producer does not give advice or provide services
that are subject to other securities law or engage in any other activity requiring other
professional licenses.
new text end
Sec. 22.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1c. new text end
new text begin Disclosure obligation. new text end
new text begin
(a) Prior to recommending and selling an annuity, the
insurance producer shall prominently disclose to the consumer the information required
under this paragraph on a form prescribed by the commissioner. The form prescribed by
the commissioner must contain:
new text end
new text begin
(1) a description of (i) the scope and terms of the relationship with the consumer, and
(ii) the role of the insurance producer in the transaction;
new text end
new text begin
(2) an affirmative statement indicating whether the insurance producer is licensed and
authorized to sell the following products:
new text end
new text begin
(i) fixed annuities;
new text end
new text begin
(ii) fixed indexed annuities;
new text end
new text begin
(iii) variable annuities;
new text end
new text begin
(iv) life insurance;
new text end
new text begin
(v) mutual funds;
new text end
new text begin
(vi) stocks and bonds; and
new text end
new text begin
(vii) certificates of deposit;
new text end
new text begin
(3) an affirmative statement describing the insurers that the insurance producer is
authorized, contracted, appointed, or otherwise able to sell insurance products for, using
the following descriptions:
new text end
new text begin
(i) from one insurer;
new text end
new text begin
(ii) from two or more insurers; or
new text end
new text begin
(iii) from two or more insurers, although primarily contracted with one insurer;
new text end
new text begin
(4) a description of the sources and types of cash and noncash compensation received
by the insurance producer, including whether the insurance producer is (i) compensated for
the sale of a recommended annuity by commission as part of a premium, or (ii) receives
other remuneration from the insurer, intermediary, or other insurance producer or by fee as
a result of a contract for advice or consulting service; and
new text end
new text begin
(5) a notice of the consumer's right to request additional information regarding cash
compensation.
new text end
new text begin
(b) Upon request of the consumer or the consumer's designated representative, the
insurance producer shall disclose:
new text end
new text begin
(1) a reasonable estimate of the amount of cash compensation received by the insurance
producer, which may be stated as a range of amounts or percentages; and
new text end
new text begin
(2) whether the cash compensation is a onetime or multiple-occurrence amount and, if
a multiple-occurrence amount, the frequency and amount of the occurrence, which may be
stated as a range of amounts or percentages.
new text end
new text begin
(c) Prior to or at the time an annuity is recommended or sold, the insurance producer
shall have a reasonable basis to believe the consumer has been reasonably informed of
various features of the annuity, including the potential surrender period and surrender charge;
potential tax penalty if the consumer sells, exchanges, surrenders, redeems, or annuitizes
the annuity; mortality and expense fees; investment advisory fees; annual fees; potential
charges for and features of riders or other options of the annuity; limitations on interest
returns; potential changes in nonguaranteed elements of the annuity; insurance and investment
components; and market risk.
new text end
Sec. 23.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1d. new text end
new text begin Conflict of interest obligation. new text end
new text begin
An insurance producer shall identify and
avoid or reasonably manage and disclose material conflicts of interest, including a material
conflict of interest related to an ownership interest.
new text end
Sec. 24.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1e. new text end
new text begin Documentation obligation. new text end
new text begin
An insurance producer shall, at the time of
recommendation or sale:
new text end
new text begin
(1) make a written record of any recommendation and the basis for the recommendation,
subject to sections 72A.203 to 72A.2036;
new text end
new text begin
(2) obtain a signed statement, on a form prescribed by the commissioner, that includes:
new text end
new text begin
(i) a customer's refusal to provide the consumer profile information, if any; and
new text end
new text begin
(ii) a customer's understanding of the ramifications of not providing the customer's
consumer profile information or providing insufficient consumer profile information; and
new text end
new text begin
(3) a consumer-signed statement, on a form prescribed by the commissioner, that
acknowledges the annuity transaction is not recommended if the customer decides to enter
into an annuity transaction that is not based on the insurance producer's recommendation.
new text end
Sec. 25.
Minnesota Statutes 2020, section 72A.2032, is amended by adding a subdivision
to read:
new text begin Subd. 1f. new text end
new text begin Application of best interest obligation. new text end
new text begin
Any requirement applicable to an
insurance producer under this section applies to every insurance producer who (1) exercises
control or influence in making a recommendation, and (2) has received direct compensation
as a result of the recommendation or sale, regardless of whether the insurance producer had
any direct contact with the consumer. Providing or delivering marketing or educational
materials, product wholesaling or other back office product support, and general supervision
of an insurance producer do not, in and of themselves, constitute material control or influence.
new text end
Sec. 26.
Minnesota Statutes 2020, section 72A.2032, subdivision 4, is amended to read:
Subd. 4.
deleted text begin Exceptiondeleted text end new text begin Transactions not based on recommendationnew text end .
(a) Except as provided
under paragraph (b), an insurance producerdeleted text begin ,deleted text end or an insurerdeleted text begin ,deleted text end does not have any obligation to
a consumer under subdivision deleted text begin 1 or 3deleted text end new text begin 1anew text end related to an annuity transaction if:
new text begin
(1) no recommendation is made;
new text end
deleted text begin (1)deleted text end new text begin (2)new text end a recommendation was made and was later found to have been prepared based
on materially inaccurate information provided by the consumer; deleted text begin or
deleted text end
deleted text begin (2)deleted text end new text begin (3)new text end a consumer refuses to provide relevant deleted text begin suitabilitydeleted text end new text begin consumer profilenew text end information
and the annuity transaction is not recommendeddeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(4) a consumer decides to enter into an annuity transaction that is not based on a
recommendation made by the insurance producer.
new text end
(b) An insurer's issuance of an annuity subject to paragraph (a) shall be reasonable under
all the circumstances actually knowndeleted text begin , or which after reasonable inquiry should be knowndeleted text end
to the insurer or the insurance producerdeleted text begin ,deleted text end at the time the annuity is issued.
Sec. 27.
Minnesota Statutes 2020, section 72A.2032, subdivision 6, is amended to read:
Subd. 6.
deleted text begin Supervision systemdeleted text end new text begin Insurer dutiesnew text end .
new text begin
(a) Except as permitted under subdivision
4, an insurer shall not issue an annuity recommended to a consumer unless there is a
reasonable basis to believe the annuity effectively addresses the particular consumer's
financial situation, insurance needs, and financial objectives based on the consumer's
consumer profile information.
new text end
deleted text begin (a)deleted text end new text begin (b)new text end An insurer shall establish new text begin and maintain new text end a supervision system that is reasonably
designed to achieve the insurer's and its insurance producers' compliance with sections
72A.203 to 72A.2036, including, but not limited to, all of the following:
(1) the insurer shallnew text begin establish andnew text end maintain reasonable procedures to inform its insurance
producers of the requirements of sections 72A.203 to 72A.2036 and shall incorporate the
requirements of sections 72A.203 to 72A.2036 into relevant insurance producer training
programs and manuals;
(2) the insurer shall establish new text begin and maintain new text end standards for insurance producer product
training and shallnew text begin establish andnew text end maintain reasonable procedures to require its insurance
producers to comply with the requirements of section 72A.2033;
(3) the insurer shall provide product-specific training and training materials which explain
all material features of its annuity products to its insurance producers;
(4) the insurer shallnew text begin establish andnew text end maintain procedures for new text begin the new text end review of each
recommendation before issuance of an annuity that are designed to ensure deleted text begin thatdeleted text end there is a
reasonable basis to determine deleted text begin that a recommendation is suitabledeleted text end new text begin the recommended annuity
effectively addresses the particular consumer's financial situation, insurance needs, and
financial objectivesnew text end . The review procedures shall apply a screening system for the purpose
of identifying selected transactions for additional review and may be accomplished
electronically or through other reasonable means including, but not limited to, physical
review. The electronic or other system shall be designed to require an elevated individual
review for those transactions involving consumers 65 years of age or older on the basis of
the review procedure's thresholds for liquidity, liquid net worth, income, and anticipated
material changes in their financial situation and needs and the elevated review shall be
conducted by a natural person or persons;
(5) the insurer shallnew text begin establish andnew text end maintain reasonable procedures to detect
recommendations that are not deleted text begin suitabledeleted text end new text begin in compliance with subdivisions 1a to 1f, 4, 7, and
8new text end . This may includedeleted text begin ,deleted text end but is not limited todeleted text begin ,deleted text end confirmation of deleted text begin consumer suitabilitydeleted text end new text begin the consumer's
profilenew text end information, systematic customer surveys, new text begin insurance producer and consumer
new text end interviews, confirmation letters, new text begin insurance producer attestations, new text end and programs of internal
monitoring. Nothing in this clause prevents an insurer from complying with this clause by
applying sampling procedures, or by confirming deleted text begin suitabilitydeleted text end new text begin consumer profilenew text end information
new text begin or other required information under this subdivision new text end after issuance or delivery of the annuity;
deleted text begin and
deleted text end
new text begin
(6) the insurer shall establish and maintain reasonable procedures to assess, prior to or
upon issuance or delivery of an annuity, whether an insurance producer has provided to the
consumer the information required under this subdivision;
new text end
new text begin
(7) the insurer shall establish and maintain reasonable procedures to identify and address
suspicious consumer refusals to provide consumer profile information;
new text end
new text begin
(8) the insurer shall establish and maintain reasonable procedures to identify and eliminate
any sales contests, sales quotas, bonuses, and noncash compensation that are based on the
sales of specific annuities within a limited period of time. This clause does not prohibit the
receipt of health insurance, office rent, office support, retirement benefits, or other employee
benefits, as long as the benefits are not based on the volume of sales of a specific annuity
within a limited period of time; and
new text end
deleted text begin (6)deleted text end new text begin (9) new text end the insurer shall annually provide a new text begin written new text end report to senior management, including
to the senior manager responsible for audit functions, which details a review, with appropriate
testing, reasonably designed to determine the effectiveness of the supervision system, the
exceptions found, and corrective action taken or recommended, if any.
deleted text begin (b)(1)deleted text end new text begin (c)(1)new text end Nothing in this subdivision restricts an insurer from contracting for
performance of a function, including maintenance of procedures, required under paragraph
deleted text begin (a)deleted text end new text begin (b)new text end . An insurer is responsible for taking appropriate corrective action and may be subject
to sanctions and penalties pursuant to section 72A.2034 regardless of whether the insurer
contracts for performance of a function and regardless of the insurer's compliance with
deleted text begin subdivision 2deleted text end new text begin clause (2)new text end , and an insurer is responsible for the compliance of an insurance
producer with the provisions of sections 72A.203 to 72A.2036 regardless of whether the
insurer contracts for performance of a function required under this paragraph; and
(2) an insurer's supervision system under paragraph deleted text begin (a)deleted text end new text begin (b)new text end must include supervision of
contractual performance under this clause. This includes, but is not limited to, the following:
(i) monitoring and, as appropriate, conducting audits to assure that the contracted function
is properly performed; and
(ii) annually obtaining a certification from a senior manager who has responsibility for
the contracted function that the manager has a reasonable basis to represent, and does
represent, that the function is properly performed.
deleted text begin (c)deleted text end new text begin (d)new text end An insurer is not required to include in its system of supervision an insurance
producer's recommendations to consumers of products other than the annuities offered by
the insurernew text begin , or consideration of or comparison to options available to the insurance producer
or compensation relating to the options other than annuities or other products offered by
the insurernew text end .
Sec. 28.
Minnesota Statutes 2020, section 72A.2032, subdivision 7, is amended to read:
Subd. 7.
deleted text begin Undue influencedeleted text end new text begin Prohibited practicesnew text end .
An insurance producer or insurer shall
not dissuade, or attempt to dissuade, a consumer from:
(1) providing deleted text begin suitabilitydeleted text end new text begin consumer profilenew text end information to the insurance producer or
insurer and truthfully responding to an insurer's request for confirmation of deleted text begin suitabilitydeleted text end new text begin
consumer profilenew text end information;
(2) filing a complaint; or
(3) cooperating with the investigation of a complaint.
Sec. 29.
Minnesota Statutes 2020, section 72A.2032, subdivision 8, is amended to read:
Subd. 8.
deleted text begin FINRAdeleted text end new text begin Comparable standards;new text end compliance.
(a) new text begin Recommendations and new text end sales
of annuities made deleted text begin by broker-dealersdeleted text end new text begin in compliance with comparable standardsnew text end satisfy the
requirements under sections 72A.203 to 72A.2036deleted text begin , so long as:deleted text end new text begin . This subdivision applies to
recommendations and sales of annuities made by financial professionals in compliance with
business rules, controls, and procedures that satisfy a comparable standard even if the
standard would not otherwise apply to the product or recommendation at issue. Nothing in
this subdivision limits the commissioner's ability to investigate and enforce sections 72A.203
to 72A.2036.
new text end
deleted text begin
(1) those sales comply with FINRA requirements pertaining to suitability and supervision
of annuity transactions; and
deleted text end
deleted text begin
(2) a registered principal reviews and approves the transaction based on review criteria
that include consideration of the customer's age, income, liquidity needs, and financial
situation.
deleted text end
deleted text begin
(b) The insurer remains responsible for the suitability of every transaction and must take
reasonably appropriate corrective action for any consumer harmed by violation of law and
is subject to the penalty provisions described in section 72A.2034, subdivision 1.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end For paragraph (a) to apply, an insurer shall:
(1) monitor the deleted text begin FINRA member broker-dealerdeleted text end new text begin relevant conduct of the financial
professional seeking to rely on paragraph (a) or the entity responsible for supervising the
financial professional, including the financial professional's broker-dealer or an investment
adviser registered under federal or state securities lawnew text end using information collected in the
normal course of the insurer's business; and
(2) provide to the deleted text begin FINRA member broker-dealerdeleted text end new text begin entity responsible for supervising the
financial professional seeking to rely on paragraph (a), including the financial professional's
broker-dealer or investment adviser registered under federal or state securities law,new text end
information and reports that are reasonably appropriate to assist deleted text begin the FINRA member
broker-dealerdeleted text end new text begin the entitynew text end to maintain its supervision system.
deleted text begin
(d) Nothing in this subdivision limits:
deleted text end
new text begin
(c) For purposes of this subdivision, "financial
professional" means an insurance producer that is regulated and acting as:
new text end
(1) deleted text begin the responsibilities of the insurer to monitor the broker-dealer as provided in this
subdivision; anddeleted text end new text begin a broker-dealer registered under federal or state securities law or a registered
representative of a broker-dealer;
new text end
(2) deleted text begin the commissioner of commerce's ability to enforce the provisions of sections 72A.203
to 72A.2036 with respect to sales made in compliance with FINRA requirements and federal
law.deleted text end new text begin an investment adviser registered under federal or state securities law, or an investment
adviser representative associated with the federal or state registered investment adviser; or
new text end
new text begin
(3) a plan fiduciary under the Employee Retirement Income Security Act of 1974
(ERISA), United States Code, title 29, section 1001; Code of Federal Regulations, title 29,
part 2510.3-21; fiduciary under the Internal Revenue Code, section 4975(e)(3); or any
amendments or successor statutes.
new text end
new text begin
(d) For purposes of this subdivision, "comparable standards" means:
new text end
new text begin
(1) with respect to broker-dealers and registered representatives of broker-dealers,
applicable United States Securities and Exchange Commission and FINRA rules pertaining
to best interest obligations and supervision of annuity recommendations and sales, including
but not limited to regulation best interest and any amendments or successor regulations;
new text end
new text begin
(2) with respect to investment advisers registered under federal or state securities law
or investment adviser representatives, the fiduciary duties and all other requirements imposed
on the investment advisers or investment adviser representatives by contract or under the
Investment Advisers Act of 1940 or applicable state securities law, including but not limited
to Form ADV and interpretations; and
new text end
new text begin
(3) with respect to plan fiduciaries or fiduciaries, the duties, obligations, prohibitions,
and all other requirements attendant to status under ERISA or the Internal Revenue Code
and any amendments or successor statutes.
new text end
Sec. 30.
Minnesota Statutes 2020, section 72A.2033, is amended to read:
72A.2033 INSURANCE PRODUCER TRAINING.
Subdivision 1.
Requirement.
An insurance producer shall not solicit the sale of an
annuity product unless the insurance producer has adequate knowledge of the product to
recommend the annuity and the insurance producer is in compliance with the insurer's
standards for product training. An insurance producer may rely on insurer-provided
product-specific training standards and materials to comply with this deleted text begin subdivisiondeleted text end new text begin sectionnew text end .
Subd. 2.
Initial training.
(a) An insurance producer who is otherwise entitled to engage
in the sale of annuity products shall complete a onetime four-credit training course approved
by the commissioner and provided by a continuing education provider approved by the
commissioner prior to commencing the transaction of annuities.
Insurance producers who hold a life insurance line of authority on deleted text begin June 1, 2013deleted text end new text begin December
31, 2022new text end , and who desire to sell annuities shall complete the requirements of this subdivision
no later than six months after January 1, deleted text begin 2014deleted text end new text begin 2023new text end . Individuals who obtain a life insurance
line of authority on or after January 1, deleted text begin 2014deleted text end new text begin 2023new text end , may not engage in the sale of annuities
until the annuity training course required under this subdivision has been completed.
(b) The length of the training required under this subdivision must be four continuing
education hours.
(c) The training required under this subdivision must include information on the following
topics:
(1) the types of annuities and various classifications of annuities;
(2) identification of the parties to an annuity;
(3) how fixed, variable, and indexed annuity contract provisions affect consumers;
(4) the application of income taxation of qualified and nonqualified annuities;
(5) the primary uses of annuities;
(6) appropriate deleted text begin and lawfuldeleted text end new text begin standards of conduct,new text end sales practices, replacement, and
disclosure requirementsdeleted text begin , and suitability information and whether an annuity is suitable for
a consumerdeleted text end ; and
(7) the recognition of indicators that a prospective insured may lack the short-term
memory or judgment to knowingly purchase an insurance product.
(d) Providers of courses intended to comply with this subdivision shall cover all topics
listed in the prescribed outline and shall not present any marketing information or provide
training on sales techniques or provide specific information about a particular insurer's
products.
(e) A provider of an annuity training course intended to comply with this subdivision
must be an approved continuing education provider in this state and comply with the
requirements applicable to insurance producer continuing education courses.
new text begin
(f) An insurance producer licensed by December 31, 2022, who holds a life insurance
line of authority and has previously completed the training in subdivision 2, paragraph (a),
shall, by July 1, 2023, complete either:
new text end
new text begin
(1) a new four-credit training course approved by the Department of Commerce after
July 1, 2022; or
new text end
new text begin
(2) an additional onetime one-credit training course approved by the Department of
Commerce by July 1, 2022, and provided by a Department of Commerce-approved education
provider on appropriate sales practices and replacement and disclosure requirements under
sections 72A.203 to 72A.2036.
new text end
deleted text begin (f)deleted text end Annuity training courses may be conducted and completed by classroom or self-study
methods in accordance with chapter 45. In order to assist compliance with this section, all
courses approved by the commissioner for the purposes of this section shall be given the
course title "deleted text begin Annuity Suitability and Disclosuredeleted text end new text begin Best Interest Standards of Conduct for
Annuity Salesnew text end ." Only courses satisfying the requirements of this section shall use this course
title after deleted text begin Junedeleted text end new text begin July new text end 1, deleted text begin 2013deleted text end new text begin 2023new text end .
(g) Providers of annuity training shall comply with the course completion reporting
requirements of chapter 45.
(h) The satisfaction of the training requirements of another state that are substantially
similar to the provisions of this subdivision satisfies the training requirements of this
subdivision in this statedeleted text begin , but does not satisfy any of the continuing education requirements
of chapter 60K unless the training requirements of the other state are satisfied through one
or more continuing education courses approved by the commissionerdeleted text end .
new text begin
(i) The satisfaction of the components of the training requirements of any course or
courses with components substantially similar to the provisions of this subdivision satisfy
the training requirements of this subdivision.
new text end
deleted text begin (i)deleted text end new text begin (j) new text end An insurer shall verify that an insurance producer has completed the annuity
training course required under this subdivision before allowing thenew text begin insurancenew text end producer to
sell an annuity product for that insurer. An insurer may satisfy its responsibility under this
subdivision by obtaining certificates of completion of the training course or obtaining reports
provided by commissioner-sponsored database systems, vendors, or from a reasonably
reliable commercial database vendor that has a reporting arrangement with approved
insurance education providers. If such data collection and reporting arrangements are not
in place, an insurer must maintain records verifying that the producer has completed the
annuity training course required under this subdivision and make the records available to
the commissioner upon request.
Sec. 31.
Minnesota Statutes 2020, section 72A.2034, is amended to read:
72A.2034 PENALTIES.
Subdivision 1.
Impositionnew text begin ; mitigation; enforcementnew text end .
(a) An insurer is responsible for
compliance with sections 72A.203 to 72A.2036. If a violation occurs, either because of the
action or inaction of the insurer or its insurance producer, the commissioner may order, in
addition to any available penalties, remedies, or administrative actions:
(1) an insurer to take reasonably appropriate corrective action, including but not limited
to canceling a transaction deleted text begin actiondeleted text end new text begin ,new text end for any consumer harmed by new text begin a failure to comply with
sections 72A.203 to 72A.2036 by new text end thedeleted text begin insurer'sdeleted text end new text begin insurernew text end , new text begin an entity contracted to perform the
insurer supervisory duties, new text end or by deleted text begin itsdeleted text end new text begin the insurer'snew text end insurance deleted text begin producer's, violation of sections
72A.203 to 72A.2036deleted text end new text begin producernew text end ;
(2) a general agency, independent agency, or the insurance producer to take reasonably
appropriate corrective action for any consumer harmed by the insurance producer's violation
of sections 72A.203 to 72A.2036; and
(3) appropriate penalties and sanctions.
(b) Nothing in sections 72A.203 to 72A.2036 shall affect any obligation of an insurer
for the acts of its insurance producers, or any consumer remedy or any cause of action that
is otherwise provided for under applicable federal or state law, including without limitation
chapter 60K.
Subd. 2.
Aggravation or mitigation.
Any applicable penalty for a violation of sections
72A.203 to 72A.2036 may be increased or decreased upon consideration of any aggravating
or mitigating circumstancesnew text begin , including if corrective action for the consumer was taken
promptly after a violation was discovered, or if the violation was not part of a pattern or
practice. The authority to enforce compliance with sections 72A.203 to 72A.2036 is vested
exclusively with the commissionernew text end .
Sec. 32.
Minnesota Statutes 2020, section 72A.2035, subdivision 1, is amended to read:
Subdivision 1.
Duration.
Insurers and insurance producers shall maintain or be able to
make available to the commissioner records of the information collected from the consumernew text begin ;
disclosures made to the consumer, including summaries of oral disclosures;new text end and other
information used in making the recommendations that were the basis for insurance
transactions for ten years after the insurance transaction is completed by the insurer. An
insurer is permitted, but shall not be required, to maintain documentation on behalf of an
insurance producer.
Sec. 33.
Minnesota Statutes 2020, section 72A.2036, is amended to read:
72A.2036 RELATIONSHIP TO OTHER LAWS; ENFORCEMENT.
(a) Nothing in sections 72A.203 to 72A.2036 deleted text begin shall be interpreted to:deleted text end new text begin limits the
commissioner's authority to make any investigation or take any action under chapter 45 or
other applicable law with respect to any insurer, insurance producer, broker-dealer, third-party
contractor, or other entity engaged in any activity involving the sale of an annuity that is
subject to sections 72A.203 to 72A.2036.
new text end
deleted text begin
(1) change, alter, or modify any of the obligations, duties, or responsibilities of insurers
or insurance producers, pursuant to any orders of the commissioner or consent decrees in
effect as of June 1, 2013; or
deleted text end
deleted text begin
(2) limit the commissioner's authority to make any investigation or take any action under
chapter 45 or other applicable state law with respect to any insurer, insurance producer,
broker-dealer, third-party contractor, or other entity engaged in any activity involving the
sale of an annuity that is subject to sections 72A.203 to 72A.2036.
deleted text end
(b) In addition to any other penalties provided by the laws of this state, a violation of
sections 72A.203 to 72A.2036 shall be considered a violation of section 72A.20.
Sec. 34. new text begin STUDY AND REPORT ON DISPARITIES BETWEEN GEOGRAPHIC
RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET HEALTH
INSURANCE RATES.
new text end
new text begin Subdivision 1. new text end
new text begin Study and recommendations. new text end
new text begin
(a) The commissioner of commerce must
(1) study disparities between Minnesota's nine geographic rating areas in individual and
small group market health insurance rates, and (2) recommend ways to reduce or eliminate
rate disparities between the geographic rating areas and provide stability for the individual
and small group health insurance markets in Minnesota.
new text end
new text begin
(b) As part of the study, the commissioner of commerce must:
new text end
new text begin
(1) identify the factors that cause higher individual and small group market health
insurance rates in certain geographic rating areas, and determine the extent to which each
identified factor contributes to the higher rates;
new text end
new text begin
(2) identify the impact of referral centers on individual and small group market health
insurance rates in southeastern Minnesota, and identify ways to reduce the rate disparity
between southeastern Minnesota and the metropolitan area, taking into consideration the
patterns of referral center usage by patients in those regions;
new text end
new text begin
(3) determine the extent to which individuals and small employers located in a geographic
rating area with higher health insurance rates than surrounding geographic rating areas have
obtained health insurance in a lower-cost geographic rating area, identify the strategies that
individuals and small employers use to obtain health insurance in a lower-cost geographic
rating area, and measure the effects of this practice on the rates of the individuals and small
employers remaining in the geographic rating area with higher health insurance rates; and
new text end
new text begin
(4) develop proposals to redraw the boundaries of Minnesota's geographic rating areas
and calculate the effect each proposal would have on rates in each of the proposed rating
areas. The commissioner of commerce must examine at least three options for redrawing
the boundaries of Minnesota's geographic rating areas, at least one of which must reduce
the number of geographic rating areas and at least one which must be based on the first
three digits of area zip codes. The commissioner must not take into consideration the
requirements of Minnesota Statutes, section 62A.65, subdivision 3, paragraph (b), clause
(2), when developing the proposals required by this section. All options for redrawing
Minnesota's geographic rating areas considered by the commissioner of commerce must be
designed:
new text end
new text begin
(i) to reduce or eliminate rate disparities between geographic rating areas and provide
for stability of the individual and small group health insurance markets in Minnesota;
new text end
new text begin
(ii) after considering the composition of existing provider networks and referral patterns
in regions of Minnesota; and
new text end
new text begin
(iii) in compliance with the requirements for geographic rating areas in Code of Federal
Regulations, title 45, section 147.102(b), and other applicable federal law and guidance.
new text end
new text begin
(c) Health carriers that cover Minnesota residents, health systems that provide care to
Minnesota residents, and the commissioner of health must cooperate with any request for
information from the commissioner of commerce that the commissioner of commerce
determines is necessary to conduct the study.
new text end
new text begin
(d) The commissioner of commerce may recommend one or more proposals to redraw
Minnesota's geographic rating areas if the commissioner of commerce determines that the
proposal would reduce or eliminate individual and small group market health insurance rate
disparities between the geographic rating areas and provide stability for the individual and
small group health insurance markets in Minnesota.
new text end
new text begin Subd. 2. new text end
new text begin Contract. new text end
new text begin
The commissioner of commerce may contract with another entity
for technical assistance in conducting the study and developing recommendations under
subdivision 1.
new text end
new text begin Subd. 3. new text end
new text begin Report. new text end
new text begin
The commissioner of commerce must complete the study and
recommendations by January 1, 2023, and submit a report on the study and recommendations
by January 1, 2023, to the chairs and ranking minority members of the legislative committees
with jurisdiction over health care and health insurance.
new text end
Sec. 35. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2020, section 62Q.56, subdivision 1a,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2020, sections 72A.2031, subdivisions 3, 9, and 11; and 72A.2032,
subdivisions 1, 2, 3, and 5,
new text end
new text begin
are repealed.
new text end
ARTICLE 4
CONSUMER PROTECTION
Section 1.
new text begin
[58B.011] STUDENT LOAN ADVOCATE.
new text end
new text begin Subdivision 1. new text end
new text begin Designation of a student loan advocate. new text end
new text begin
The commissioner of commerce
must designate a student loan advocate within the Department of Commerce to provide
timely assistance to borrowers and to effectuate this chapter.
new text end
new text begin Subd. 2. new text end
new text begin Duties. new text end
new text begin
The student loan advocate has the following duties:
new text end
new text begin
(1) receive, review, and attempt to resolve complaints from borrowers, including but
not limited to attempts to resolve borrower complaints in collaboration with institutions of
higher education, student loan servicers, and any other participants in student loan lending;
new text end
new text begin
(2) compile and analyze data on borrower complaints received under clause (1);
new text end
new text begin
(3) help borrowers understand the rights and responsibilities under the terms of student
loans;
new text end
new text begin
(4) provide information to the public, state agencies, legislators, and relevant stakeholders
regarding the problems and concerns of borrowers;
new text end
new text begin
(5) make recommendations to resolve the problems of borrowers;
new text end
new text begin
(6) analyze and monitor the development and implementation of federal, state, and local
laws, regulations, and policies relating to borrowers, and recommend any changes deemed
necessary;
new text end
new text begin
(7) review the complete student loan history for any borrower who has provided written
consent to conduct the review;
new text end
new text begin
(8) increase public awareness that the advocate is available to assist in resolving the
student loan servicing concerns of potential and actual borrowers, institutions of higher
education, student loan servicers, and any other participant in student loan lending; and
new text end
new text begin
(9) take other actions as necessary to fulfill the duties of the advocate, as provided under
this section.
new text end
new text begin Subd. 3. new text end
new text begin Student loan education course. new text end
new text begin
The advocate must establish and maintain a
borrower education course. The course must include educational presentations and materials
regarding important topics in student loans, including but not limited to:
new text end
new text begin
(1) the meaning of important terminology used in student lending;
new text end
new text begin
(2) documentation requirements;
new text end
new text begin
(3) monthly payment obligations;
new text end
new text begin
(4) income-based repayment options;
new text end
new text begin
(5) the availability of state and federal loan forgiveness programs; and
new text end
new text begin
(6) disclosure requirements.
new text end
new text begin Subd. 4. new text end
new text begin Reporting. new text end
new text begin
By January 15 of each odd-numbered year, the advocate must report
to the legislative committees with jurisdiction over commerce and higher education. The
report must describe (1) the advocate's implementation of this section, (2) the outcomes
achieved by the advocate during the previous two years, and (3) any recommendations to
improve the regulation of student loan servicers.
new text end
Sec. 2.
Minnesota Statutes 2020, section 65B.84, subdivision 1, is amended to read:
Subdivision 1.
Program described; commissioner's duties; appropriation.
(a) The
commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws, and
provide a forum for identification of critical problems for those persons dealing with
automobile theft;
(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect to
automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part to
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need of
further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas of the
state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety, pursuant
to subdivision 3 from the automobile theft prevention special revenue account for automobile
theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;
(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;
(v) providing financial support to judicial agencies for programs designed to reduce the
incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and to
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely to occur;
and
(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and inspections
staff, and members of the judiciary.
(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to the
automobile theft prevention special revenue account each year, less the transfer of $1,300,000
each year to the insurance fraud prevention account described in section 297I.11, subdivision
2.
(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
in the auto theft prevention account to the insurance fraud prevention account under section
45.0135, subdivision 6.
new text begin
(d) The commissioner must establish a library of equipment to combat automobile-related
theft offenses. The equipment must be available to all law enforcement agencies upon
request to support law enforcement agency efforts to combat automobile theft.
new text end
Sec. 3.
Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision to
read:
new text begin Subd. 11. new text end
new text begin Prohibition on possessing catalytic converters; exception. new text end
new text begin
(a) It is unlawful
for a person who is not a registered scrap metal dealer to possess a used catalytic converter
that is not attached to a motor vehicle except when:
new text end
new text begin
(1) the converter is marked with (i) the date the converter was removed from the vehicle,
and (ii) the identification number of the vehicle from which the converter was removed or
an alternative number to the vehicle identification number from the vehicle from which the
converter was removed; or
new text end
new text begin
(2) the converter has been EPA certified for reuse as a replacement part.
new text end
new text begin
(b) If an alternative number to the vehicle identification number is used, it must be under
a numbering system that can be immediately linked to the vehicle identification number by
law enforcement. The marking of the alternative number may be made in any permanent
manner, including but not limited to an engraving or use of permanent ink. The marking
must clearly and legibly indicate (1) the date the converter was removed; and (2) the (i)
vehicle identification number, or (ii) alternative number and the method by which law
enforcement can link the converter to the vehicle identification number.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2022, and applies to crimes
committed on or after that date.
new text end
Sec. 4.
Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision to
read:
new text begin Subd. 12. new text end
new text begin Prohibition. new text end
new text begin
It is unlawful for a person who is not a registered scrap metal
dealer to purchase a used catalytic converter that is not EPA certified for reuse as a
replacement part, except when the catalytic converter is attached to a motor vehicle. A used
catalytic converter that is EPA certified for reuse as a replacement part may be sold to a
person or business for reuse as a replacement part for a motor vehicle when the requirements
of subdivision 11 are met.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2022, and applies to crimes
committed on or after that date.
new text end
Sec. 5.
new text begin
[325F.6945] UNLAWFUL SOCIAL MEDIA ACTIVITIES.
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) "Account holder" means a person who accesses a social media account through a
social media platform.
new text end
new text begin
(c) "Social media algorithm" means the software used by social media platforms to (1)
prioritize content, and (2) direct the prioritized content to the account holder.
new text end
new text begin
(d) "Social media platform" means an electronic medium, including a browser-based or
application-based interactive computer service, telephone network, or data network, that
allows users to create, share, and view user-generated content. Social media platform does
not include Internet search providers, Internet service providers, or e-mail.
new text end
new text begin
(e) "User-generated content" means any content created or shared by an account holder,
including without limitation written posts, photographs, graphics, video recordings, or audio
recordings.
new text end
new text begin Subd. 2. new text end
new text begin Prohibitions; social media algorithm. new text end
new text begin
(a) A social media platform with more
than 1,000,000 account holders operating in Minnesota is prohibited from using a social
media algorithm to target user-generated content at an account holder under the age of 18
and who is located in Minnesota, except as provided in subdivision 3.
new text end
new text begin
(b) The social media platform is liable to an individual account holder who received
user-generated content through a social media algorithm while the individual account holder
was under the age of 18 if the social media platform knew or had reason to know that the
individual account holder was under the age of 18 and located in Minnesota. A social media
platform subject to this paragraph is liable to the account holder for (1) any general or special
damages, (2) a statutory penalty of $1,000 for each violation of this section, provided that
no individual account holder may recover more than $100,000 in statutory penalties under
this subdivision in any calendar year, and (3) any other penalties available under law.
new text end
new text begin Subd. 3. new text end
new text begin Exceptions. new text end
new text begin
(a) An algorithm, software, or device that acts as a parental control,
or an internal control used by the social media platform that is intended to control the ability
of a minor to access content, or is used to filter content for age-appropriate or banned
material, is exempt from this section.
new text end
new text begin
(b) User-generated content that is created by a federal, state, or local government or by
a public or private school, college, or university, including software and applications used
by a public or private school, college, or university that are created and used for educational
purposes, is exempt from this section.
new text end
Sec. 6.
new text begin
[332.365] CREDIT COUNSELING ORGANIZATIONS; DEBTORS.
new text end
new text begin Subdivision 1. new text end
new text begin Duties of commissioner. new text end
new text begin
(a) On or before July 1, 2023, the commissioner
must develop and maintain a document that includes the contact information for nonprofit
organizations domiciled in Minnesota that provide credit counseling services to debtors.
Credit counseling services include but are not limited to (1) helping a debtor understand
the debtor's rights and responsibilities, and (2) working with debtors, creditors, and collection
agencies to satisfy debts. The document must include contact information for organizations
that provide credit counseling services in languages other than English to individuals whose
primary language is a language other than English. The document must include the following
statement in English, Spanish, Somali, Hmong, Vietnamese, and Chinese:
new text end
new text begin
"There are resources available to help manage your debt. The following Minnesota
organizations offer debt and credit counseling services. The Department of Commerce does
not control or guarantee any of the services provided by these organizations. This list is not
a referral to, or endorsement or recommendation of, any organization or the organization's
services."
new text end
new text begin
(b) The document must be no more than one 8-1/2 by 11-inch sheet of paper. The
commissioner must maintain the document and make it publicly available on the department's
website in a printable format.
new text end
new text begin
(c) Beginning September 1, 2024, the commissioner may update the document no more
than once per year and must notify all licensed collection agencies after an update occurs.
A collection agency has 120 days from the date the collection agency receives notice of an
update to the document from the commissioner to apply the changes to the document.
new text end
new text begin Subd. 2. new text end
new text begin Duties of collection agency. new text end
new text begin
Beginning September 1, 2023, a collection agency
must include the document described in subdivision 1 with the initial written communication
sent to a debtor if the initial communication is performed via United States mail, e-mail, or
text message.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2022.
new text end
Sec. 7.
Minnesota Statutes 2020, section 609.5316, subdivision 3, is amended to read:
Subd. 3.
Weapons, telephone cloning paraphernalia, automated sales suppression
devices, new text begin catalytic converters, new text end and bullet-resistant vests.
Weapons used are contraband
and must be summarily forfeited to the appropriate agency upon conviction of the weapon's
owner or possessor for a controlled substance crime; for any offense of this chapter or
chapter 624, or for a violation of an order for protection under section 518B.01, subdivision
14. Bullet-resistant vests, as defined in section 609.486, worn or possessed during the
commission or attempted commission of a crime are contraband and must be summarily
forfeited to the appropriate agency upon conviction of the owner or possessor for a controlled
substance crime or for any offense of this chapter. Telephone cloning paraphernalia used
in a violation of section 609.894, and automated sales suppression devices, phantom-ware,
and other devices containing an automated sales suppression or phantom-ware device or
software used in violation of section 289A.63, subdivision 12, are contraband and must be
summarily forfeited to the appropriate agency upon a conviction.new text begin A catalytic converter
possessed in violation of section 325E.21 is contraband and must be summarily forfeited
to the appropriate agency upon a conviction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2022, and applies to crimes
committed on or after that date.
new text end
APPENDIX
Repealed Minnesota Statutes: H3607-1
45.25 DEFINITIONS.
Subd. 2a.
Classroom course.
"Classroom course" means an educational process based on live or real-time instruction including, but not limited to:
(1) a course in which there is no geographic separation of instructor and learner;
(2) a course taught live that is concurrently simulcast to remote locations and where each location is monitored by a proctor; and
(3) a course taught live that is concurrently simulcast to individual students online and that includes a process to authenticate the student's identity and technology to guarantee seat time.
Subd. 14.
Self-study course.
"Self-study course" means a distance learning course that is not entirely taught by the instructor live via the Internet, video, or other electronic means.
60A.033 SCHEDULING CONFERENCE AND ORDER.
Subd. 3.
Exception.
A scheduling conference and order is not required under this section if the insurance company waives its right to a scheduling conference and order.
62Q.56 CONTINUITY OF CARE.
Subd. 1a.
Change in health care provider; termination not for cause.
(a) If the contract termination was not for cause and the contract was terminated by the health plan company, the health plan company must provide the terminated provider and all enrollees being treated by that provider with notification of the enrollees' rights to continuity of care with the terminated provider.
(b) The health plan company must provide, upon request, authorization to receive services that are otherwise covered under the terms of the health plan through the enrollee's current provider:
(1) for up to 120 days if the enrollee is engaged in a current course of treatment for one or more of the following conditions:
(i) an acute condition;
(ii) a life-threatening mental or physical illness;
(iii) pregnancy beyond the first trimester of pregnancy;
(iv) a physical or mental disability defined as an inability to engage in one or more major life activities, provided that the disability has lasted or can be expected to last for at least one year, or can be expected to result in death; or
(v) a disabling or chronic condition that is in an acute phase; or
(2) for the rest of the enrollee's life if a physician, advanced practice registered nurse, or physician assistant certifies that the enrollee has an expected lifetime of 180 days or less.
For all requests for authorization to receive services under this paragraph, the health plan company must grant the request unless the enrollee does not meet the criteria provided in this paragraph.
(c) The health plan company shall prepare a written plan that provides a process for coverage determinations regarding continuity of care of up to 120 days for enrollees who request continuity of care with their former provider, if the enrollee:
(1) is receiving culturally appropriate services and the health plan company does not have a provider in its preferred provider network with special expertise in the delivery of those culturally appropriate services within the time and distance requirements of section 62D.124, subdivision 1; or
(2) does not speak English and the health plan company does not have a provider in its preferred provider network who can communicate with the enrollee, either directly or through an interpreter, within the time and distance requirements of section 62D.124, subdivision 1.
The written plan must explain the criteria that will be used to determine whether a need for continuity of care exists and how it will be provided.
72A.2031 DEFINITIONS.
Subd. 3.
Broker-dealer.
"Broker-dealer" means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. The term does not include:
(1) an agent;
(2) an issuer;
(3) a depository institution, provided such activities are conducted in accordance with rules as may be adopted by the administrator;
(4) an international banking institution; or
(5) a person excluded by rule adopted or order issued under this chapter.
Subd. 9.
Registered principal.
"Registered principal" means a person associated with a FINRA member broker-dealer, who is actively engaged in the management of the FINRA member broker-dealer investment banking or securities business, including supervision, solicitation, conduct of business, or the training of persons associated with a FINRA member broker-dealer for any of these functions.
Subd. 11.
Suitability information.
"Suitability information" means information that is reasonably appropriate to determine the suitability of a recommendation, including but not limited to the following:
(1) age;
(2) annual income and anticipated material changes in annual income;
(3) financial situation and needs, including the financial resources used for the funding of the annuity, and including anticipated material changes in financial situation and needs;
(4) financial experience;
(5) financial objectives;
(6) intended use of the annuity;
(7) financial time horizon;
(8) existing assets, including investment and life insurance holdings and anticipated material changes in existing assets;
(9) liquidity needs and anticipated material changes in liquidity needs;
(10) liquid net worth and anticipated material changes in liquid net worth;
(11) risk tolerance;
(12) tax status; and
(13) whether or not the consumer has a reverse mortgage.
72A.2032 DUTIES OF INSURERS AND INSURANCE PRODUCERS.
Subdivision 1.
Suitability standard.
In recommending to a consumer the purchase of an annuity or the exchange of an annuity that results in another insurance transaction or series of insurance transactions, the insurance producer, or the insurer where no producer is involved, shall have reasonable grounds for believing, after a reasonable inquiry, that the recommendation is suitable for the consumer, under the totality of the circumstances based on the facts disclosed by the consumer as to the consumer's investments and other insurance products and as to the consumer's financial situation and needs, including the consumer's suitability information, and that there is a reasonable basis to believe all of the following:
(1) the consumer has been reasonably informed of various features of the annuity, such as the potential surrender period and surrender charge, potential tax penalty if the consumer sells, exchanges, surrenders, redeems, or annuitizes the annuity, mortality and expense fees, investment advisory fees, potential charges for and features of riders, limitations on interest returns, insurance and investment components, and market risk;
(2) the consumer would receive a tangible net benefit from the transaction;
(3) for the particular consumer based on the consumer's suitability information:
(i) the particular annuity as a whole, the underlying subaccounts to which funds are allocated at the time of purchase or exchange of the annuity, and riders and similar product enhancements, if any, are suitable; and
(ii) in the case of an exchange or replacement, the transaction as a whole is suitable taking into account, among other things, the age of the consumer; and
(4) in the case of an exchange or replacement of an annuity, the exchange or replacement is suitable including taking into consideration all of the following:
(i) the consumer will incur a surrender charge; be subject to the commencement of a new surrender period; lose existing benefits, such as death, living, or other contractual benefits; or be subject to increased fees, investment advisory fees, or charges for riders and similar product enhancements;
(ii) the consumer would receive a tangible net benefit from the transaction, and in the case of a person 65 years of age or older, neither a producer nor an insurer shall recommend a replacement or exchange of an annuity that requires the insured to pay a surrender charge for the annuity being replaced or exchanged if the replacement or exchange does not confer a substantial financial benefit over the life of the annuity to the consumer so that a reasonable person would believe the purchase is unnecessary; and
(iii) the consumer has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding 60 months.
Subd. 2.
Obtaining suitability information.
Before the execution of a purchase, exchange, or replacement of an annuity resulting from a recommendation, an insurance producer, or an insurer where no producer is involved, shall make reasonable efforts to obtain the consumer's suitability information, and record this information on a form, inventory, or similar record. The producer, upon request, shall provide to the consumer or the consumer's legal representative a copy of the information used in the making of the suitability determination.
Subd. 3.
Restriction on issuance of annuity.
Except as permitted under subdivision 4, an insurer shall not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity is suitable based on the consumer's suitability information.
Subd. 5.
Documentation.
An insurance producer or, where no insurance producer is involved, the responsible insurer representative shall at the time of sale:
(1) make a record of any recommendation subject to subdivision 1;
(2) obtain a consumer-signed statement documenting a consumer's refusal to provide suitability information, if any; and
(3) obtain a consumer-signed statement acknowledging that an annuity transaction is not recommended if a consumer decides to enter into an annuity transaction that is not based on the insurance producer's or insurer's recommendation.