as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/22/2021 11:51am
A bill for an act
relating to commerce; establishing a biennial budget for Department of Commerce,
Public Utilities Commission, and energy activities; modifying various provisions
governing insurance; modifying provisions governing collections agencies and
debt buyers; modifying and adding consumer protections; establishing and
modifying provisions governing energy, renewable energy, and utility regulation;
providing for certain salary increases; making technical changes; establishing
penalties; requiring reports; appropriating money; amending Minnesota Statutes
2020, sections 13.712, by adding a subdivision; 16B.86; 16B.87; 60A.092,
subdivision 10a, by adding a subdivision; 60A.0921, subdivision 2; 60A.71,
subdivision 7; 61A.245, subdivision 4; 62J.03, subdivision 4; 62J.23, subdivision
2; 62J.26, subdivisions 1, 2, 3, 4, 5; 65B.15, subdivision 1; 65B.43, subdivision
12; 65B.472, subdivision 1; 79.55, subdivision 10; 79.61, subdivision 1; 80G.06,
subdivision 1; 82.57, subdivisions 1, 5; 82.62, subdivision 3; 82.81, subdivision
12; 82B.021, subdivision 18; 82B.11, subdivision 3; 115C.094; 116.155, by adding
a subdivision; 116C.7792; 174.29, subdivision 1; 174.30, subdivisions 1, 10;
216B.096, subdivisions 2, 3; 216B.097, subdivisions 1, 2, 3, by adding a
subdivision; 216B.0976; 216B.1691, subdivision 2f; 216B.241, by adding a
subdivision; 216B.2412, subdivision 3; 216B.2422, by adding a subdivision;
216B.62, subdivision 3b; 216F.012; 221.031, subdivision 3b; 256B.0625,
subdivisions 10, 17; 308A.201, subdivision 12; 325E.21, subdivisions 1, 1b, by
adding a subdivision; 325F.171, by adding a subdivision; 325F.172, by adding a
subdivision; 332.31, subdivisions 3, 6, by adding subdivisions; 332.311; 332.32;
332.33, subdivisions 1, 2, 5, 5a, 7, 8, by adding a subdivision; 332.34; 332.345;
332.355; 332.37; 332.385; 332.40, subdivision 3; 332.42, subdivisions 1, 2;
514.972, subdivisions 4, 5; 514.973, subdivisions 3, 4; 514.974; 514.977; proposing
coding for new law in Minnesota Statutes, chapters 60A; 62Q; 80G; 115B; 116J;
216B; 216C; 216F; 325F; proposing coding for new law as Minnesota Statutes,
chapter 58B; repealing Minnesota Statutes 2020, sections 45.017; 60A.98; 60A.981;
60A.982; 115C.13.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin APPROPRIATIONS.
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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 2021 legislative session, the appropriation must be given effect only once.
new text end
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APPROPRIATIONS new text end |
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Available for the Year new text end |
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Ending June 30 new text end |
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2022 new text end |
new text begin
2023 new text end |
Sec. 2. new text begin DEPARTMENT OF COMMERCE
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new text begin Subdivision 1. new text end
new text begin
Total Appropriation
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new text begin
$ new text end |
new text begin
44,172,000 new text end |
new text begin
$ new text end |
new text begin
33,893,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
2022 new text end |
new text begin
2023 new text end |
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new text begin
General new text end |
new text begin
40,095,000 new text end |
new text begin
29,983,000 new text end |
new text begin
Special Revenue new text end |
new text begin
2,260,000 new text end |
new text begin
2,093,000 new text end |
new text begin
Workers' Compensation Fund new text end |
new text begin
761,000 new text end |
new text begin
761,000 new text end |
new text begin
Petroleum Tank new text end |
new text begin
1,056,000 new text end |
new text begin
1,056,000 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
Financial Institutions
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new text begin
1,923,000 new text end |
new text begin
1,941,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
General new text end |
new text begin
1,923,000 new text end |
new text begin
1,941,000 new text end |
new text begin
(a) $400,000 each year is for a grant to Prepare
and Prosper to develop, market, evaluate, and
distribute a financial services inclusion
program that (1) assists low-income and
financially underserved populations to build
savings and strengthen credit, and (2) provides
services to assist low-income and financially
underserved populations to become more
financially stable and secure. Money
remaining after the first year is available for
the second year.
new text end
new text begin
(b) $254,000 each year is to administer the
requirements of Minnesota Statutes, chapter
58B.
new text end
new text begin Subd. 3. new text end
new text begin
Administrative Services
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new text begin
9,346,000 new text end |
new text begin
8,821,000 new text end |
new text begin
(a) $392,000 in the first year and $401,000 in
the second year are for additional compliance
efforts with unclaimed property. The
commissioner may issue contracts for these
services.
new text end
new text begin
(b) $5,000 each year is for Real Estate
Appraisal Advisory Board compensation
pursuant to Minnesota Statutes, section
82B.073, subdivision 2a.
new text end
new text begin
(c) $353,000 each year is for system
modernization and cybersecurity upgrades for
the unclaimed property program.
new text end
new text begin
(d) $564,000 each year is for additional
operations of the unclaimed property program.
new text end
new text begin
(e) $832,000 in the first year and $208,000 in
the second year are for IT system
modernization. The base in fiscal year 2024
and beyond is $0.
new text end
new text begin Subd. 4. new text end
new text begin
Telecommunications
|
new text begin
3,443,000 new text end |
new text begin
3,183,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
General new text end |
new text begin
1,383,000 new text end |
new text begin
1,090,000 new text end |
new text begin
Special Revenue new text end |
new text begin
2,060,000 new text end |
new text begin
2,093,000 new text end |
new text begin
(a) $2,060,000 in the first year and $2,093,000
in the second year are from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers:
new text end
new text begin
(1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This transfer
is subject to Minnesota Statutes, section
16A.281;
new text end
new text begin
(2) $290,000 each year is to the chief
information officer to coordinate technology
accessibility and usability;
new text end
new text begin
(3) $100,000 in the first year and $133,000 in
the second year are to the Legislative
Coordinating Commission for captioning
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; and
new text end
new text begin
(4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants or services to other state
agencies related to accessibility of web-based
services.
new text end
new text begin
(b) $310,000 in the first year is for transfer to
the Legislative Coordinating Commission for
additional captioning of legislative coverage
necessitated by the COVID-19 public health
emergency.
new text end
new text begin Subd. 5. new text end
new text begin
Enforcement
|
new text begin
5,807,000 new text end |
new text begin
5,498,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
General new text end |
new text begin
5,406,000 new text end |
new text begin
5,297,000 new text end |
new text begin
Workers' Compensation new text end |
new text begin
201,000 new text end |
new text begin
201,000 new text end |
new text begin
Special Revenue Fund new text end |
new text begin
200,000 new text end |
new text begin
-0- new text end |
new text begin
(a) $283,000 in the first year and $286,000 in
the second year are for health care
enforcement.
new text end
new text begin
(b) $201,000 each year is from the workers'
compensation fund.
new text end
new text begin
(c) Notwithstanding Minnesota Statutes,
section 297I.11, subdivision 2, $200,000 in
the first year is from the auto theft prevention
account in the special revenue fund for the
catalytic converter theft prevention pilot
project. This balance does not cancel but is
available in the second year.
new text end
new text begin
(d) $200,000 in the first year is from the
general fund for the catalytic converter theft
prevention pilot project. This balance does not
cancel but is available in the second year.
new text end
new text begin
(e) $300,000 in fiscal year 2022 is transferred
from the consumer education account in the
special revenue fund to the general fund.
new text end
new text begin Subd. 6. new text end
new text begin
Insurance
|
new text begin
7,072,000 new text end |
new text begin
7,138,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
General new text end |
new text begin
6,512,000 new text end |
new text begin
6,578,000 new text end |
new text begin
Workers' Compensation new text end |
new text begin
560,000 new text end |
new text begin
560,000 new text end |
new text begin
(a) $656,000 in the first year and $671,000 in
the second year are for health insurance rate
review staffing.
new text end
new text begin
(b) $421,000 in the first year and $431,000 in
the second year are for actuarial work to
prepare for implementation of principle-based
reserves.
new text end
new text begin
(c) $30,000 in the first year is to pay for two
years of membership dues for Minnesota to
the National Conference of Insurance
Legislators.
new text end
new text begin
(d) $428,000 in the first year and $432,000 in
the second year are for licensing activities
under Minnesota Statutes, chapter 62W. Of
this amount, $246,000 each year must be used
only for staff costs associated with two
enforcement investigators to enforce
Minnesota Statutes, chapter 62W.
new text end
new text begin
(e) $560,000 each year is from the workers'
compensation fund.
new text end
new text begin
(f) $105,000 each year is to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26.
new text end
new text begin Subd. 7. new text end
new text begin
Weights and Measures Division
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new text begin
1,500,000 new text end |
new text begin
1,500,000 new text end |
new text begin
$1,500,000 each year is for replacement of
existing equipment and continuity of
operations.
new text end
new text begin Subd. 8. new text end
new text begin
Energy Resources
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new text begin
13,925,000 new text end |
new text begin
4,756,000 new text end |
new text begin
(a) $150,000 each year is to remediate
vermiculite insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end
new text begin
(b) $851,000 in the first year and $870,000 in
the second year are for energy regulation and
planning unit staff.
new text end
new text begin
(c) $8,000,000 in the first year is to provide
financial assistance to schools to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. This
appropriation must be expended on schools
located outside the electric service territory of
the public utility that is subject to Minnesota
Statutes, section 116C.779. Any money
remaining on June 30, 2027, cancels to the
general fund.
new text end
new text begin
(d) $1,242,000 in the first year is to provide
financial assistance to schools that are state
colleges and universities to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. This
appropriation must be expended on schools
located outside the electric service territory of
the public utility that is subject to Minnesota
Statutes, section 116C.779. The base amount
for fiscal year 2024 is $1,138,000. Any money
remaining on June 30, 2027, cancels to the
general fund.
new text end
new text begin
(e) $189,000 each year is for activities
associated with a utility's implementation of
a natural gas innovation plan under Minnesota
Statutes, section 216B.2427.
new text end
new text begin Subd. 9. new text end
new text begin
Petroleum Tank Release Compensation
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new text begin
1,056,000 new text end |
new text begin
1,056,000 new text end |
new text begin
This appropriation is from the petroleum tank
fund to account for base adjustments provided
in Minnesota Statutes, section 115C.13.
new text end
new text begin Subd. 10. new text end
new text begin
Landfill Bond Prepayment; Solar Pilot
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new text begin
(a) $100,000 in the first year is from the
general fund for transfer to the commissioner
of management and budget to prepay and
defease any outstanding general obligation
bonds used to acquire property, finance
improvements and betterments, or pay any
other associated financing costs at the
Anoka-Ramsey closed landfill. This amount
may be deposited, invested, and applied to
accomplish the purposes of this section as
provided in Minnesota Statutes, section
475.67, subdivisions 5 to 10 and 13. Upon the
prepayment and defeasance of all associated
debt on the real property and improvements,
all conditions set forth in Minnesota Statutes,
section 16A.695, subdivision 3, are deemed
to have been satisfied and the real property
and improvements no longer constitute state
bond financed property under Minnesota
Statutes, section 16A.695.
new text end
new text begin
(b) Once the purposes in paragraph (a) have
been met, the commissioner of the Pollution
Control Agency may take actions and execute
agreements to facilitate the beneficial reuse of
the Anoka-Ramsey closed landfill, and may
specifically authorize the installation of a solar
energy generating system, as defined in
Minnesota Statutes, section 216E.01,
subdivision 9a, as a pilot project at the closed
landfill to be owned and operated by a
cooperative electric association that has more
than 130,000 customers in Minnesota. The
appropriation in paragraph (a) must not be
used to finance the pilot project, procure land
rights, or to manage the solar energy
generating system.
new text end
Sec. 3. new text begin MINNESOTA MANAGEMENT AND
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new text begin
$ new text end |
new text begin
49,000 new text end |
new text begin
$ new text end |
new text begin
49,000 new text end |
new text begin
$49,000 each year is for consultation with the
commissioner of commerce to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26.
new text end
Sec. 4. new text begin DEPARTMENT OF HEALTH
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new text begin
$ new text end |
new text begin
37,000 new text end |
new text begin
$ new text end |
new text begin
37,000 new text end |
new text begin
$37,000 each year is for consultation with the
commissioner of commerce to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26.
new text end
Sec. 5. new text begin PUBLIC UTILITIES COMMISSION
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new text begin
$ new text end |
new text begin
$8,185,000 new text end |
new text begin
$ new text end |
new text begin
$8,314,000 new text end |
new text begin
$112,000 each year is for activities associated
with a utility's implementation of a natural gas
innovation plan under Minnesota Statutes,
section 216B.2427.
new text end
Sec. 6. new text begin DEPARTMENT OF EMPLOYMENT
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new text begin
$ new text end |
new text begin
170,000 new text end |
new text begin
$ new text end |
new text begin
$350,000 new text end |
new text begin
$170,000 in the first year and $350,000 in the
second year are to operate the Energy
Transition Office under Minnesota Statutes,
section 116J.5491.
new text end
Sec. 7. new text begin DEPARTMENT OF EDUCATION
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new text begin
$ new text end |
new text begin
150,000 new text end |
new text begin
$ new text end |
new text begin
150,000 new text end |
new text begin
$150,000 in fiscal year 2022 and $150,000 in
fiscal year 2023 are for grants to the
Minnesota Council on Economic Education
under article 7, section 3. These are onetime
appropriations.
new text end
new text begin
$1,220,000 of the fiscal year 2021 general fund appropriation under Laws 2019, First
Special Session chapter 7, article 1, section 6, subdivision 3, is canceled.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Section 1. new text begin RENEWABLE DEVELOPMENT FINANCE.
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new text begin
(a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, 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.
new text end
new text begin
(b) If an appropriation in this article is enacted more than once in the 2021 regular or
special legislative session, the appropriation must be given effect only once.
new text end
new text begin
APPROPRIATIONS new text end |
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new text begin
Available for the Year new text end |
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new text begin
Ending June 30 new text end |
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new text begin
2022 new text end |
new text begin
2023 new text end |
Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT
|
new text begin
$ new text end |
new text begin
8,000,000 new text end |
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin Subdivision 1. new text end
new text begin
Clean Energy Career Training
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new text begin
$2,500,000 the first year is for a grant to
Northgate Development, LLC, for a pilot
project under article 8, section 30, to provide
training pathways into careers in the clean
energy sector for students and young adults
in underserved communities. Any unexpended
funds remaining at the end of the biennium
cancel to the renewable development account.
This is a onetime appropriation.
new text end
new text begin Subd. 2. new text end
new text begin
Mountain Iron Solar
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new text begin
$5,500,000 the first year is for a grant to the
Mountain Iron Economic Development
Authority to expand a city-owned solar
module manufacturing plant building in the
city's Renewable Energy Industrial Park. This
is a onetime appropriation and any amount
unexpended by June 30, 2022, must be
returned to the renewable development
account.
new text end
Sec. 3. 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
4,825,000 new text end |
new text begin
$ new text end |
new text begin
1,800,000 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
"Made in Minnesota" Administration
|
new text begin
$100,000 each year is to administer the "Made
in Minnesota" solar energy production
incentive program under Minnesota Statutes,
section 216C.417.
new text end
new text begin Subd. 3. new text end
new text begin
Third-Party Evaluator
|
new text begin
$500,000 each year is for costs associated with
any third-party expert evaluation of a proposal
submitted in response to a request for proposal
to the Renewable Development Advisory
Group under Minnesota Statutes, section
116C.779, subdivision 1, paragraph (l). No
portion of this appropriation may be expended
or retained by the commissioner of commerce.
Any money appropriated under this paragraph
that is unexpended at the end of a fiscal year
cancels to the renewable development account.
new text end
new text begin Subd. 4. new text end
new text begin
Agricultural Weather Study
|
new text begin
$583,000 the first year is for a grant to the
Board of Regents of the University of
Minnesota to conduct a study that generates
weather model projections for the entire state
of Minnesota at a level of detail as small as
three square miles in area. This is a onetime
appropriation.
new text end
new text begin Subd. 5. new text end
new text begin
Microgrid Research and Application
|
new text begin
(a) $2,400,000 the first year and $1,200,000
the second year are for a grant to the
University of St. Thomas Center for Microgrid
Research for the purposes of paragraph (b).
The base in fiscal year 2024 is $1,000,000.
The base in fiscal year 2025 is $400,000. The
base in fiscal year 2026 is $400,000.
new text end
new text begin
(b) The appropriations in this subdivision must
be used by the University of St. Thomas
Center for Microgrid Research to:
new text end
new text begin
(1) increase the center's capacity to provide
industry partners opportunities to test
near-commercial microgrid products on a
real-world scale and to multiply opportunities
for innovative research;
new text end
new text begin
(2) procure advanced equipment and controls
to enable the extension of the university's
microgrid to additional buildings; and
new text end
new text begin
(3) expand (i) hands-on educational
opportunities for undergraduate and graduate
electrical engineering students to increase
understanding of microgrid operations, and
(ii) partnerships with community colleges.
new text end
new text begin Subd. 6. new text end
new text begin
Solar on State College and University
|
new text begin
$1,242,000 the first year is to provide financial
assistance to schools that are state colleges
and universities to purchase and install solar
energy generating systems under Minnesota
Statutes, section 216C.376. This appropriation
must be expended on schools located inside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779. The base in fiscal year 2024
is $1,138,000.
new text end
Sec. 4. new text begin UNIVERSITY OF MINNESOTA
|
new text begin
$ new text end |
new text begin
10,000,000 new text end |
new text begin
$ new text end |
new text begin
-0- new text end |
new text begin
$10,000,000 the first year is to the Board of
Regents of the University of Minnesota, West
Central Research and Outreach Center, for the
purpose of leading research, development, and
advancement of energy storage systems that
utilize hydrogen and ammonia production
from renewables and other sources of clean
energy. Funds received under this section may
only be used for those portions of the project
that are related to renewable power generation
using ammonia directly as a fuel or as a carrier
for hydrogen fuel. Research and development
of ultrasafe ammonia storage is an eligible use
of funds under this section. This is a onetime
appropriation and any amount unexpended by
June 30, 2025, must be returned to the
renewable development account.
new text end
Sec. 5. new text begin DEPARTMENT OF
|
new text begin
$ new text end |
new text begin
5,344,000 new text end |
new text begin
$ new text end |
new text begin
88,000 new text end |
new text begin Subdivision 1. new text end
new text begin
State Building Energy
|
new text begin
$5,000,000 the first year is for deposit in the
state building energy conservation
improvement revolving loan account
established in Minnesota Statutes, section
16B.86, for the purpose of providing loans to
state agencies for energy conservation projects
under Minnesota Statutes, section 16B.87.
new text end
new text begin Subd. 2. new text end
new text begin
State Building Energy Conservation
|
new text begin
$219,000 the first year and $88,000 the second
year are for software and administrative costs
associated with the state building energy
conservation improvement revolving loan
program under Minnesota Statutes, section
16B.87. The base in fiscal year 2024 is
$90,000 and the base in fiscal year 2025 is
$92,000.
new text end
new text begin Subd. 3. new text end
new text begin
Construction Materials; Environmental
|
new text begin
$125,000 the first year is to complete the study
required under article 8, section 31.
new text end
Minnesota Statutes 2020, section 60A.092, subdivision 10a, is amended to read:
The reinsurance is ceded and credit allowed to an
assuming insurer not meeting the requirements of subdivision 2, 3, 4, 5, deleted text begin ordeleted text end 10, new text begin or 10b, new text end but
only with respect to the insurance of risks located in jurisdictions where the reinsurance is
required by applicable law or regulation of that jurisdiction.
new text begin
This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end
Minnesota Statutes 2020, section 60A.092, is amended by adding a subdivision to
read:
new text begin
(a) Credit shall be allowed when
the reinsurance is ceded to an assuming insurer meeting each of the following conditions:
new text end
new text begin
(1) the assuming insurer must have its head office in or be domiciled in, as applicable,
and be licensed in a reciprocal jurisdiction. A "reciprocal jurisdiction" means a jurisdiction
that is:
new text end
new text begin
(i) a non-United States jurisdiction that is subject to an in-force covered agreement with
the United States, each within its legal authority, or, in the case of a covered agreement
between the United States and the European Union, is a member state of the European
Union. For purposes of this subdivision, a "covered agreement" means an agreement entered
into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, United
States Code, title 31, sections 313 and 314, that is currently in effect or in a period of
provisional application and addresses the elimination, under specified conditions, of collateral
requirements as a condition for entering into any reinsurance agreement with a ceding insurer
domiciled in Minnesota or for allowing the ceding insurer to recognize credit for reinsurance;
new text end
new text begin
(ii) a United States jurisdiction that meets the requirements for accreditation under the
National Association of Insurance Commissioners (NAIC) financial standards and
accreditation program; or
new text end
new text begin
(iii) a qualified jurisdiction, as determined by the commissioner, which is not otherwise
described in item (i) or (ii) and which meets the following additional requirements, consistent
with the terms and conditions of in-force covered agreements:
new text end
new text begin
(A) provides that an insurer which has its head office or is domiciled in such qualified
jurisdiction shall receive credit for reinsurance ceded to a United States-domiciled assuming
insurer in the same manner as credit for reinsurance is received for reinsurance assumed by
insurers domiciled in such qualified jurisdiction;
new text end
new text begin
(B) does not require a United States-domiciled assuming insurer to establish or maintain
a local presence as a condition for entering into a reinsurance agreement with any ceding
insurer subject to regulation by the non-United States jurisdiction or as a condition to allow
the ceding insurer to recognize credit for such reinsurance;
new text end
new text begin
(C) recognizes the United States state regulatory approach to group supervision and
group capital, by providing written confirmation by a competent regulatory authority, in
such qualified jurisdiction, that insurers and insurance groups that are domiciled or maintain
their headquarters in this state or another jurisdiction accredited by the NAIC shall be subject
only to worldwide prudential insurance group supervision including worldwide group
governance, solvency and capital, and reporting, as applicable, by the commissioner or the
commissioner of the domiciliary state and will not be subject to group supervision at the
level of the worldwide parent undertaking of the insurance or reinsurance group by the
qualified jurisdiction; and
new text end
new text begin
(D) provides written confirmation by a competent regulatory authority in such qualified
jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated
entities, if applicable, shall be provided to the commissioner in accordance with a
memorandum of understanding or similar document between the commissioner and such
qualified jurisdiction, including but not limited to the International Association of Insurance
Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda
of understanding coordinated by the NAIC;
new text end
new text begin
(2) the assuming insurer must have and maintain, on an ongoing basis, minimum capital
and surplus, or its equivalent, calculated according to the methodology of its domiciliary
jurisdiction, on at least an annual basis as of the preceding December 31 or on the date
otherwise statutorily reported to the reciprocal jurisdiction, in the following amounts:
new text end
new text begin
(i) no less than $250,000,000; or
new text end
new text begin
(ii) if the assuming insurer is an association, including incorporated and individual
unincorporated underwriters:
new text end
new text begin
(A) minimum capital and surplus equivalents, net of liabilities, or own funds of the
equivalent of at least $250,000,000; and
new text end
new text begin
(B) a central fund containing a balance of the equivalent of at least $250,000,000;
new text end
new text begin
(3) the assuming insurer must have and maintain, on an ongoing basis, a minimum
solvency or capital ratio, as applicable, as follows:
new text end
new text begin
(i) if the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction
defined in clause (1), item (i), the ratio specified in the applicable covered agreement;
new text end
new text begin
(ii) if the assuming insurer is domiciled in a reciprocal jurisdiction defined in clause (1),
item (ii), a risk-based capital ratio of 300 percent of the authorized control level, calculated
in accordance with the formula developed by the NAIC; or
new text end
new text begin
(iii) if the assuming insurer is domiciled in a Reciprocal Jurisdiction defined in clause
(1), item (iii), after consultation with the reciprocal jurisdiction and considering any
recommendations published through the NAIC Committee Process, such solvency or capital
ratio as the commissioner determines to be an effective measure of solvency;
new text end
new text begin
(4) the assuming insurer must agree and provide adequate assurance in the form of a
properly executed Form RJ-1 of its agreement to the following:
new text end
new text begin
(i) the assuming insurer must provide prompt written notice and explanation to the
commissioner if it falls below the minimum requirements set forth in clause (2) or (3), or
if any regulatory action is taken against the assuming insurer for serious noncompliance
with applicable law;
new text end
new text begin
(ii) the assuming insurer must consent in writing to the jurisdiction of the courts of
Minnesota and to the appointment of the commissioner as agent for service of process. The
commissioner may require that consent for service of process be provided to the
commissioner and included in each reinsurance agreement. Nothing in this subdivision shall
limit or in any way alter the capacity of parties to a reinsurance agreement to agree to
alternative dispute resolution mechanisms, except to the extent such agreements are
unenforceable under applicable insolvency or delinquency laws;
new text end
new text begin
(iii) the assuming insurer must consent in writing to pay all final judgments, wherever
enforcement is sought, obtained by a ceding insurer or its legal successor, that have been
declared enforceable in the jurisdiction where the judgment was obtained;
new text end
new text begin
(iv) each reinsurance agreement must include a provision requiring the assuming insurer
to provide security in an amount equal to 100 percent of the assuming insurer's liabilities
attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists
enforcement of a final judgment that is enforceable under the law of the jurisdiction in which
it was obtained or a properly enforceable arbitration award, whether obtained by the ceding
insurer or by its legal successor on behalf of its resolution estate;
new text end
new text begin
(v) the assuming insurer must confirm that it is not presently participating in any solvent
scheme of arrangement which involves this state's ceding insurers, and agree to notify the
ceding insurer and the commissioner and to provide security in an amount equal to 100
percent of the assuming insurer's liabilities to the ceding insurer, should the assuming insurer
enter into such a solvent scheme of arrangement. The security shall be in a form consistent
with sections 60A.092, subdivision 10, 60A.093, 60A.096, and 60A.097. For purposes of
this section, the term "solvent scheme of arrangement" means a foreign or alien statutory
or regulatory compromise procedure subject to requisite majority creditor approval and
judicial sanction in the assuming insurer's home jurisdiction either to finally commute
liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize
or restructure the debts and obligations of a solvent debtor on a final basis, and which may
be subject to judicial recognition and enforcement of the arrangement by a governing
authority outside the ceding insurer's home jurisdiction; and
new text end
new text begin
(vi) the assuming insurer must agree in writing to meet the applicable information filing
requirements set forth in clause (5);
new text end
new text begin
(5) the assuming insurer or its legal successor must provide, if requested by the
commissioner, on behalf of itself and any legal predecessors, the following documentation
to the commissioner:
new text end
new text begin
(i) for the two years preceding entry into the reinsurance agreement and on an annual
basis thereafter, the assuming insurer's annual audited financial statements, in accordance
with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, as
applicable, including the external audit report;
new text end
new text begin
(ii) for the two years preceding entry into the reinsurance agreement, the solvency and
financial condition report or actuarial opinion, if filed with the assuming insurer's supervisor;
new text end
new text begin
(iii) prior to entry into the reinsurance agreement and not more than semiannually
thereafter, an updated list of all disputed and overdue reinsurance claims outstanding for
90 days or more, regarding reinsurance assumed from ceding insurers domiciled in the
United States; and
new text end
new text begin
(iv) prior to entry into the reinsurance agreement and not more than semiannually
thereafter, information regarding the assuming insurer's assumed reinsurance by ceding
insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid
and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth
in clause (6);
new text end
new text begin
(6) the assuming insurer must maintain a practice of prompt payment of claims under
reinsurance agreements. The lack of prompt payment will be evidenced if any of the
following criteria is met:
new text end
new text begin
(i) more than 15 percent of the reinsurance recoverables from the assuming insurer are
overdue and in dispute as reported to the commissioner;
new text end
new text begin
(ii) more than 15 percent of the assuming insurer's ceding insurers or reinsurers have
overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute
and which exceed for each ceding insurer $100,000, or as otherwise specified in a covered
agreement; or
new text end
new text begin
(iii) the aggregate amount of reinsurance recoverable on paid losses which are not in
dispute, but are overdue by 90 days or more, exceeds $50,000,000, or as otherwise specified
in a covered agreement;
new text end
new text begin
(7) the assuming insurer's supervisory authority must confirm to the commissioner by
December 31, 2021, and annually thereafter, or at the annual date otherwise statutorily
reported to the reciprocal jurisdiction, that the assuming insurer complies with the
requirements set forth in clauses (2) and (3); and
new text end
new text begin
(8) nothing in this subdivision precludes an assuming insurer from providing the
commissioner with information on a voluntary basis.
new text end
new text begin
(b) The commissioner shall timely create and publish a list of reciprocal jurisdictions.
The commissioner's list shall include any reciprocal jurisdiction as defined under paragraph
(a), clause (1), items (i) and (ii), and shall consider any other reciprocal jurisdiction included
on the NAIC list. The commissioner may approve a jurisdiction that does not appear on the
NAIC list of reciprocal jurisdictions in accordance with criteria developed under rules issued
by the commissioner. The commissioner may remove a jurisdiction from the list of reciprocal
jurisdictions upon a determination that the jurisdiction no longer meets the requirements of
a reciprocal jurisdiction, in accordance with a process set forth in rules issued by the
commissioner, except that the commissioner shall not remove from the list a reciprocal
jurisdiction as defined under paragraph (a), clause (1), items (i) and (ii). Upon removal of
a reciprocal jurisdiction from the list, credit for reinsurance ceded to an assuming insurer
which has its home office or is domiciled in that jurisdiction shall be allowed, if otherwise
allowed pursuant to law.
new text end
new text begin
(c) The commissioner shall timely create and publish a list of assuming insurers that
have satisfied the conditions set forth in this subdivision and to which cessions shall be
granted credit in accordance with this subdivision. The commissioner may add an assuming
insurer to the list if an NAIC accredited jurisdiction has added the assuming insurer to a list
of assuming insurers or if, upon initial eligibility, the assuming insurer submits the
information to the commissioner as required under paragraph (a), clause (4), and complies
with any additional requirements that the commissioner may impose by rule, except to the
extent that they conflict with an applicable covered agreement.
new text end
new text begin
(i) If an NAIC-accredited jurisdiction has determined that the conditions set forth in
paragraph (a), clause (2), have been met, the commissioner has the discretion to defer to
that jurisdiction's determination, and add such assuming insurer to the list of assuming
insurers to which cessions shall be granted credit in accordance with this paragraph. The
commissioner may accept financial documentation filed with another NAIC-accredited
jurisdiction or with the NAIC in satisfaction of the requirements of paragraph (a), clause
(2);
new text end
new text begin
(ii) When requesting that the commissioner defer to another NAIC-accredited
jurisdiction's determination, an assuming insurer must submit a properly executed Form
RJ-1 and additional information as the commissioner may require. A state that has received
such a request will notify other states through the NAIC Committee Process and provide
relevant information with respect to the determination of eligibility.
new text end
new text begin
(d) If the commissioner determines that an assuming insurer no longer meets one or
more of the requirements under this subdivision, the commissioner may revoke or suspend
the eligibility of the assuming insurer for recognition under this subdivision in accordance
with procedures set forth in rule. While an assuming insurer's eligibility is suspended, no
reinsurance agreement issued, amended, or renewed after the effective date of the suspension
qualifies for credit, except to the extent that the assuming insurer's obligations under the
contract are secured in accordance with this section. If an assuming insurer's eligibility is
revoked, no credit for reinsurance may be granted after the effective date of the revocation
with respect to any reinsurance agreements entered into by the assuming insurer, including
reinsurance agreements entered into prior to the date of revocation, except to the extent that
the assuming insurer's obligations under the contract are secured in a form acceptable to
the commissioner and consistent with the provisions of this section.
new text end
new text begin
(e) Before denying statement credit or imposing a requirement to post security with
respect to paragraph (d) or adopting any similar requirement that will have substantially the
same regulatory impact as security, the commissioner shall:
new text end
new text begin
(1) communicate with the ceding insurer, the assuming insurer, and the assuming insurer's
supervisory authority that the assuming insurer no longer satisfies one of the conditions
listed in paragraph (a), clause (2);
new text end
new text begin
(2) provide the assuming insurer with 30 days from the initial communication to submit
a plan to remedy the defect, and 90 days from the initial communication to remedy the
defect, except in exceptional circumstances in which a shorter period is necessary for
policyholder and other consumer protection;
new text end
new text begin
(3) after the expiration of 90 days or less, as set out in clause (2), if the commissioner
determines that no or insufficient action was taken by the assuming insurer, the commissioner
may impose any of the requirements as set out in this paragraph; and
new text end
new text begin
(4) provide a written explanation to the assuming insurer of any of the requirements set
out in this paragraph.
new text end
new text begin
(f) If subject to a legal process of rehabilitation, liquidation, or conservation, as applicable,
the ceding insurer, or its representative, may seek and, if determined appropriate by the
court in which the proceedings are pending, may obtain an order requiring that the assuming
insurer post security for all outstanding ceded liabilities.
new text end
new text begin
(g) Nothing in this subdivision limits or in any way alters the capacity of parties to a
reinsurance agreement to agree on requirements for security or other terms in the reinsurance
agreement, except as expressly prohibited by applicable law or rule.
new text end
new text begin
(h) Credit may be taken under this subdivision only for reinsurance agreements entered
into, amended, or renewed on or after the effective date of this subdivision, and only with
respect to losses incurred and reserves reported on or after the later of: (1) the date on which
the assuming insurer has met all eligibility requirements pursuant to this subdivision; and
(2) the effective date of the new reinsurance agreement, amendment, or renewal. This
paragraph does not alter or impair a ceding insurer's right to take credit for reinsurance, to
the extent that credit is not available under this subdivision, as long as the reinsurance
qualifies for credit under any other applicable provision of law. Nothing in this subdivision
shall authorize an assuming insurer to withdraw or reduce the security provided under any
reinsurance agreement, except as permitted by the terms of the agreement. Nothing in this
subdivision shall limit, or in any way alter, the capacity of parties to any reinsurance
agreement to renegotiate the agreement.
new text end
new text begin
This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end
Minnesota Statutes 2020, section 60A.0921, subdivision 2, is amended to read:
(a) The commissioner shall post notice on the
department's website promptly upon receipt of any application for certification, including
instructions on how members of the public may respond to the application. The commissioner
may not take final action on the application until at least 30 days after posting the notice.
(b) The commissioner shall issue written notice to an assuming insurer that has applied
and been approved as a certified reinsurer. The notice must include the rating assigned the
certified reinsurer in accordance with subdivision 1. The commissioner shall publish a list
of all certified reinsurers and their ratings.
(c) In order to be eligible for certification, the assuming insurer must:
(1) be domiciled and licensed to transact insurance or reinsurance in a qualified
jurisdiction, as determined by the commissioner under subdivision 3;
(2) maintain capital and surplus, or its equivalent, of no less than $250,000,000 calculated
in accordance with paragraph (d), clause (8). This requirement may also be satisfied by an
association including incorporated and individual unincorporated underwriters having
minimum capital and surplus equivalents net of liabilities of at least $250,000,000 and a
central fund containing a balance of at least $250,000,000;
(3) maintain financial strength ratings from two or more rating agencies acceptable to
the commissioner. These ratings shall be based on interactive communication between the
rating agency and the assuming insurer and shall not be based solely on publicly available
information. These financial strength ratings shall be one factor used by the commissioner
in determining the rating that is assigned to the assuming insurer. Acceptable rating agencies
include the following:
(i) Standard & Poor's;
(ii) Moody's Investors Service;
(iii) Fitch Ratings;
(iv) A.M. Best Company; or
(v) any other nationally recognized statistical rating organization; and
(4) ensure that the certified reinsurer complies with any other requirements reasonably
imposed by the commissioner.
(d) Each certified reinsurer shall be rated on a legal entity basis, with due consideration
being given to the group rating where appropriate, except that an association including
incorporated and individual unincorporated underwriters that has been approved to do
business as a single certified reinsurer may be evaluated on the basis of its group rating.
Factors that may be considered as part of the evaluation process include, but are not limited
to:
(1) certified reinsurer's financial strength rating from an acceptable rating agency. The
maximum rating that a certified reinsurer may be assigned will correspond to its financial
strength rating as outlined in the table below. The commissioner shall use the lowest financial
strength rating received from an approved rating agency in establishing the maximum rating
of a certified reinsurer. A failure to obtain or maintain at least two financial strength ratings
from acceptable rating agencies will result in loss of eligibility for certification;
Ratings |
Best |
S&P |
Moody's |
Fitch |
Secure - 1 |
A++ |
AAA |
Aaa |
AAA |
Secure - 2 |
A+ |
AA+, AA, AA- |
Aa1, Aa2, Aa3 |
AA+, AA, AA- |
Secure - 3 |
A |
A+, A |
A1, A2 |
A+, A |
Secure - 4 |
A- |
A- |
A3 |
A- |
Secure - 5 |
B++, B- |
BBB+, BBB, BBB- |
Baa1, Baa2, Baa3 |
BBB+, BBB, BBB- |
Vulnerable - 6 |
B, B-C++, C+, C, C-, D, E, F |
BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, R |
Ba1, Ba2, Ba3, B1, B2, B3, Caa, Ca, C |
BB+, BB, BB-, B+, B, B-, CCC+, CC, CCC-, DD |
(2) the business practices of the certified reinsurer in dealing with its ceding insurers,
including its record of compliance with reinsurance contractual terms and obligations;
(3) for certified reinsurers domiciled in the United States, a review of the most recent
applicable NAIC annual statement;
(4) for certified reinsurers not domiciled in the United States, a review annually of such
forms as may be required by the commissioner;
(5) the reputation of the certified reinsurer for prompt payment of claims under
reinsurance agreements, based on an analysis of ceding insurers' reporting of overdue
reinsurance recoverables, including the proportion of obligations that are more than 90 days
past due or are in dispute, with specific attention given to obligations payable to companies
that are in administrative supervision or receivership;
(6) regulatory actions against the certified reinsurer;
(7) the report of the independent auditor on the financial statements of the insurance
enterprise, on the basis described in clause (8);
(8) for certified reinsurers not domiciled in the United States, audited financial statements
(audited United States GAAP basis if available, audited IFRS basis statements are allowed,
but must include an audited footnote reconciling equity and net income to a United States
GAAP basis, or, with permission of the commissioner, audited IFRS statements with
reconciliation to United States GAAP certified by an officer of the company). Upon the
initial application for certification, the commissioner will consider audited financial
statements for the last deleted text begin threedeleted text end new text begin twonew text end years filed with its non-United States jurisdiction supervisor;
(9) the liquidation priority of obligations to a ceding insurer in the certified reinsurer's
domiciliary jurisdiction in the context of an insolvency proceeding;
(10) a certified reinsurer's participation in any solvent scheme of arrangement, or similar
procedure, which involves United States ceding insurers. The commissioner must receive
prior notice from a certified reinsurer that proposes participation by the certified reinsurer
in a solvent scheme of arrangement; and
(11) other information as determined by the commissioner.
(e) Based on the analysis conducted under paragraph (d), clause (5), of a certified
reinsurer's reputation for prompt payment of claims, the commissioner may make appropriate
adjustments in the security the certified reinsurer is required to post to protect its liabilities
to United States ceding insurers, provided that the commissioner shall, at a minimum,
increase the security the certified reinsurer is required to post by one rating level under
paragraph (d), clause (1), if the commissioner finds that:
(1) more than 15 percent of the certified reinsurer's ceding insurance clients have overdue
reinsurance recoverables on paid losses of 90 days or more which are not in dispute and
which exceed $100,000 for each cedent; or
(2) the aggregate amount of reinsurance recoverables on paid losses which are not in
dispute that are overdue by 90 days or more exceeds $50,000,000.
(f) The assuming insurer must submit such forms as required by the commissioner as
evidence of its submission to the jurisdiction of this state, appoint the commissioner as an
agent for service of process in this state, and agree to provide security for 100 percent of
the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding
insurers if it resists enforcement of a final United States judgment. The commissioner shall
not certify an assuming insurer that is domiciled in a jurisdiction that the commissioner has
determined does not adequately and promptly enforce final United States judgments or
arbitration awards.
(g) The certified reinsurer must agree to meet filing requirements as determined by the
commissioner, both with respect to an initial application for certification and on an ongoing
basis. All data submitted by certified reinsurers to the commissioner is nonpublic under
section 13.02, subdivision 9. The certified reinsurer must file with the commissioner:
(1) a notification within ten days of any regulatory actions taken against the certified
reinsurer, any change in the provisions of its domiciliary license, or any change in rating
by an approved rating agency, including a statement describing such changes and the reasons
therefore;
(2) an annual report regarding reinsurance assumed, in a form determined by the
commissioner;
(3) an annual report of the independent auditor on the financial statements of the insurance
enterprise, on the basis described in clause (4);
(4) an annual audited financial statement, regulatory filings, and actuarial opinion filed
with the certified reinsurer's supervisor. Upon the initial certification, audited financial
statements for the last deleted text begin threedeleted text end new text begin twonew text end years filed with the certified reinsurer's supervisor;
(5) at least annually, an updated list of all disputed and overdue reinsurance claims
regarding reinsurance assumed from United States domestic ceding insurers;
(6) a certification from the certified reinsurer's domestic regulator that the certified
reinsurer is in good standing and maintains capital in excess of the jurisdiction's highest
regulatory action level; and
(7) any other relevant information as determined by the commissioner.
new text begin
This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end
Minnesota Statutes 2020, section 60A.71, subdivision 7, is amended to read:
(a) Each applicant for a reinsurance intermediary license shall
pay to the commissioner a fee of $200 for an initial two-year license and a fee of $150 for
each renewal. Applications shall be submitted on forms prescribed by the commissioner.
(b) Initial licenses issued under this chapter are valid for a period not to exceed 24 months
and expire on October 31 of the renewal year assigned by the commissioner. Each renewal
reinsurance intermediary license is valid for a period of 24 months. deleted text begin Licensees who submit
renewal applications postmarked or delivered on or before October 15 of the renewal year
may continue to transact business whether or not the renewal license has been received by
November 1. Licensees who submit applications postmarked or delivered after October 15
of the renewal year must not transact business after the expiration date of the license until
the renewal license has been received.
deleted text end
(c) All fees are nonreturnable, except that an overpayment of any fee may be refunded
upon proper application.
new text begin
As used in sections 60A.985 to 60A.9857, the following terms
have the meanings given.
new text end
new text begin
"Authorized individual" means an individual known
to and screened by the licensee and determined to be necessary and appropriate to have
access to the nonpublic information held by the licensee and its information systems.
new text end
new text begin
"Consumer" means an individual, including but not limited to an
applicant, policyholder, insured, beneficiary, claimant, and certificate holder who is a resident
of this state and whose nonpublic information is in a licensee's possession, custody, or
control.
new text end
new text begin
"Cybersecurity event" means an event resulting in
unauthorized access to, or disruption or misuse of, an information system or nonpublic
information stored on an information system.
new text end
new text begin
Cybersecurity event does not include the unauthorized acquisition of encrypted nonpublic
information if the encryption, process, or key is not also acquired, released, or used without
authorization.
new text end
new text begin
Cybersecurity event does not include an event with regard to which the licensee has
determined that the nonpublic information accessed by an unauthorized person has not been
used or released and has been returned or destroyed.
new text end
new text begin
"Encrypted" means the transformation of data into a form which
results in a low probability of assigning meaning without the use of a protective process or
key.
new text end
new text begin
"Information security program" means the
administrative, technical, and physical safeguards that a licensee uses to access, collect,
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic
information.
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new text begin
"Information system" means a discrete set of electronic
information resources organized for the collection, processing, maintenance, use, sharing,
dissemination, or disposition of nonpublic electronic information, as well as any specialized
system such as industrial or process controls systems, telephone switching and private
branch exchange systems, and environmental control systems.
new text end
new text begin
"Licensee" means any person licensed, authorized to operate, or
registered, or required to be licensed, authorized, or registered by the Department of
Commerce or the Department of Health under chapters 59A to 62M, 62Q to 62V, and 64B
to 79A.
new text end
new text begin
"Multifactor authentication" means authentication
through verification of at least two of the following types of authentication factors:
new text end
new text begin
(1) knowledge factors, such as a password;
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new text begin
(2) possession factors, such as a token or text message on a mobile phone; or
new text end
new text begin
(3) inherence factors, such as a biometric characteristic.
new text end
new text begin
"Nonpublic information" means electronic information
that is not publicly available information and is:
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new text begin
(1) any information concerning a consumer which because of name, number, personal
mark, or other identifier can be used to identify the consumer, in combination with any one
or more of the following data elements:
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new text begin
(i) Social Security number;
new text end
new text begin
(ii) driver's license number or nondriver identification card number;
new text end
new text begin
(iii) financial account number, credit card number, or debit card number;
new text end
new text begin
(iv) any security code, access code, or password that would permit access to a consumer's
financial account; or
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new text begin
(v) biometric records; or
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new text begin
(2) any information or data, except age or gender, in any form or medium created by or
derived from a health care provider or a consumer that can be used to identify a particular
consumer and that relates to:
new text end
new text begin
(i) the past, present, or future physical, mental, or behavioral health or condition of any
consumer or a member of the consumer's family;
new text end
new text begin
(ii) the provision of health care to any consumer; or
new text end
new text begin
(iii) payment for the provision of health care to any consumer.
new text end
new text begin
"Person" means any individual or any nongovernmental entity,
including but not limited to any nongovernmental partnership, corporation, branch, agency,
or association.
new text end
new text begin
"Publicly available information" means any
information that a licensee has a reasonable basis to believe is lawfully made available to
the general public from: federal, state, or local government records; widely distributed
media; or disclosures to the general public that are required to be made by federal, state, or
local law.
new text end
new text begin
For the purposes of this definition, a licensee has a reasonable basis to believe that
information is lawfully made available to the general public if the licensee has taken steps
to determine:
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new text begin
(1) that the information is of the type that is available to the general public; and
new text end
new text begin
(2) whether a consumer can direct that the information not be made available to the
general public and, if so, that such consumer has not done so.
new text end
new text begin
"Risk assessment" means the risk assessment that each
licensee is required to conduct under section 60A.9853, subdivision 3.
new text end
new text begin
"State" means the state of Minnesota.
new text end
new text begin
"Third-party service provider" means a person,
not otherwise defined as a licensee, that contracts with a licensee to maintain, process, or
store nonpublic information, or is otherwise permitted access to nonpublic information
through its provision of services to the licensee.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
Commensurate
with the size and complexity of the licensee, the nature and scope of the licensee's activities,
including its use of third-party service providers, and the sensitivity of the nonpublic
information used by the licensee or in the licensee's possession, custody, or control, each
licensee shall develop, implement, and maintain a comprehensive written information
security program based on the licensee's risk assessment and that contains administrative,
technical, and physical safeguards for the protection of nonpublic information and the
licensee's information system.
new text end
new text begin
A licensee's information
security program shall be designed to:
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new text begin
(1) protect the security and confidentiality of nonpublic information and the security of
the information system;
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(2) protect against any threats or hazards to the security or integrity of nonpublic
information and the information system;
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(3) protect against unauthorized access to, or use of, nonpublic information, and minimize
the likelihood of harm to any consumer; and
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(4) define and periodically reevaluate a schedule for retention of nonpublic information
and a mechanism for its destruction when no longer needed.
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The licensee shall:
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(1) designate one or more employees, an affiliate, or an outside vendor authorized to act
on behalf of the licensee who is responsible for the information security program;
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(2) identify reasonably foreseeable internal or external threats that could result in
unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic
information, including threats to the security of information systems and nonpublic
information that are accessible to, or held by, third-party service providers;
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(3) assess the likelihood and potential damage of the threats identified pursuant to clause
(2), taking into consideration the sensitivity of the nonpublic information;
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(4) assess the sufficiency of policies, procedures, information systems, and other
safeguards in place to manage these threats, including consideration of threats in each
relevant area of the licensee's operations, including:
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(i) employee training and management;
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(ii) information systems, including network and software design, as well as information
classification, governance, processing, storage, transmission, and disposal; and
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(iii) detecting, preventing, and responding to attacks, intrusions, or other systems failures;
and
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(5) implement information safeguards to manage the threats identified in its ongoing
assessment, and no less than annually, assess the effectiveness of the safeguards' key controls,
systems, and procedures.
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Based on its risk assessment, the licensee shall:
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(1) design its information security program to mitigate the identified risks, commensurate
with the size and complexity of the licensee, the nature and scope of the licensee's activities,
including its use of third-party service providers, and the sensitivity of the nonpublic
information used by the licensee or in the licensee's possession, custody, or control;
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(2) determine which of the following security measures are appropriate and implement
any appropriate security measures:
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(i) place access controls on information systems, including controls to authenticate and
permit access only to authorized individuals, to protect against the unauthorized acquisition
of nonpublic information;
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(ii) identify and manage the data, personnel, devices, systems, and facilities that enable
the organization to achieve business purposes in accordance with their relative importance
to business objectives and the organization's risk strategy;
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(iii) restrict physical access to nonpublic information to authorized individuals only;
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(iv) protect, by encryption or other appropriate means, all nonpublic information while
being transmitted over an external network and all nonpublic information stored on a laptop
computer or other portable computing or storage device or media;
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(v) adopt secure development practices for in-house developed applications utilized by
the licensee;
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(vi) modify the information system in accordance with the licensee's information security
program;
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(vii) utilize effective controls, which may include multifactor authentication procedures
for any authorized individual accessing nonpublic information;
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(viii) regularly test and monitor systems and procedures to detect actual and attempted
attacks on, or intrusions into, information systems;
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(ix) include audit trails within the information security program designed to detect and
respond to cybersecurity events and designed to reconstruct material financial transactions
sufficient to support normal operations and obligations of the licensee;
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(x) implement measures to protect against destruction, loss, or damage of nonpublic
information due to environmental hazards, such as fire and water damage, other catastrophes,
or technological failures; and
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(xi) develop, implement, and maintain procedures for the secure disposal of nonpublic
information in any format;
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(3) include cybersecurity risks in the licensee's enterprise risk management process;
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(4) stay informed regarding emerging threats or vulnerabilities and utilize reasonable
security measures when sharing information relative to the character of the sharing and the
type of information shared; and
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(5) provide its personnel with cybersecurity awareness training that is updated as
necessary to reflect risks identified by the licensee in the risk assessment.
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If the licensee has a board of directors, the
board or an appropriate committee of the board shall, at a minimum:
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(1) require the licensee's executive management or its delegates to develop, implement,
and maintain the licensee's information security program;
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(2) require the licensee's executive management or its delegates to report in writing, at
least annually, the following information:
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(i) the overall status of the information security program and the licensee's compliance
with this act; and
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(ii) material matters related to the information security program, addressing issues such
as risk assessment, risk management and control decisions, third-party service provider
arrangements, results of testing, cybersecurity events or violations and management's
responses thereto, and recommendations for changes in the information security program;
and
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(3) if executive management delegates any of its responsibilities under this section, it
shall oversee the development, implementation, and maintenance of the licensee's information
security program prepared by the delegate and shall receive a report from the delegate
complying with the requirements of the report to the board of directors.
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(a) A licensee shall
exercise due diligence in selecting its third-party service provider.
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(b) A licensee shall require a third-party service provider to implement appropriate
administrative, technical, and physical measures to protect and secure the information
systems and nonpublic information that are accessible to, or held by, the third-party service
provider.
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The licensee shall monitor, evaluate, and adjust, as
appropriate, the information security program consistent with any relevant changes in
technology, the sensitivity of its nonpublic information, internal or external threats to
information, and the licensee's own changing business arrangements, such as mergers and
acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to
information systems.
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(a) As part of its information security program, each
licensee shall establish a written incident response plan designed to promptly respond to,
and recover from, any cybersecurity event that compromises the confidentiality, integrity,
or availability of nonpublic information in its possession, the licensee's information systems,
or the continuing functionality of any aspect of the licensee's business or operations.
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(b) The incident response plan shall address the following areas:
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(1) the internal process for responding to a cybersecurity event;
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(2) the goals of the incident response plan;
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(3) the definition of clear roles, responsibilities, and levels of decision-making authority;
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(4) external and internal communications and information sharing;
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(5) identification of requirements for the remediation of any identified weaknesses in
information systems and associated controls;
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(6) documentation and reporting regarding cybersecurity events and related incident
response activities; and
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(7) the evaluation and revision, as necessary, of the incident response plan following a
cybersecurity event.
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(a) Subject to paragraph (b), by April
15 of each year, an insurer domiciled in this state shall certify in writing to the commissioner
that the insurer is in compliance with the requirements set forth in this section. Each insurer
shall maintain all records, schedules, and data supporting this certificate for a period of five
years and shall permit examination by the commissioner. To the extent an insurer has
identified areas, systems, or processes that require material improvement, updating, or
redesign, the insurer shall document the identification and the remedial efforts planned and
underway to address such areas, systems, or processes. Such documentation must be available
for inspection by the commissioner.
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(b) The commissioner must post on the department's website, no later than 60 days prior
to the certification required by paragraph (a), the form and manner of submission required
and any instructions necessary to prepare the certification.
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This section is effective August 1, 2021. Licensees have one year
from the effective date to implement subdivisions 1 to 5 and 7 to 9, and two years from the
effective date to implement subdivision 6.
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If the licensee learns that a cybersecurity event
has or may have occurred, the licensee, or an outside vendor or service provider designated
to act on behalf of the licensee, shall conduct a prompt investigation.
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During the investigation, the licensee, or an outside
vendor or service provider designated to act on behalf of the licensee, shall, at a minimum
and to the extent possible:
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(1) determine whether a cybersecurity event has occurred;
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(2) assess the nature and scope of the cybersecurity event, if any;
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(3) identify whether any nonpublic information was involved in the cybersecurity event
and, if so, what nonpublic information was involved; and
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(4) perform or oversee reasonable measures to restore the security of the information
systems compromised in the cybersecurity event in order to prevent further unauthorized
acquisition, release, or use of nonpublic information in the licensee's possession, custody,
or control.
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If the licensee learns that a cybersecurity event has or
may have occurred in a system maintained by a third-party service provider, the licensee
will complete the steps listed in subdivision 2 or confirm and document that the third-party
service provider has completed those steps.
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The licensee shall maintain records concerning all cybersecurity
events for a period of at least five years from the date of the cybersecurity event and shall
produce those records upon demand of the commissioner.
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This section is effective August 1, 2021.
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Each licensee shall notify the
commissioner of commerce or commissioner of health, whichever commissioner otherwise
regulates the licensee, without unreasonable delay but in no event later than five business
days from a determination that a cybersecurity event has occurred when either of the
following criteria has been met:
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(1) this state is the licensee's state of domicile, in the case of an insurer, or this state is
the licensee's home state, in the case of a producer, as those terms are defined in chapter
60K and the cybersecurity event has a reasonable likelihood of materially harming:
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(i) any consumer residing in this state; or
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(ii) any part of the normal operations of the licensee; or
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(2) the licensee reasonably believes that the nonpublic information involved is of 250
or more consumers residing in this state and that is either of the following:
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(i) a cybersecurity event impacting the licensee of which notice is required to be provided
to any government body, self-regulatory agency, or any other supervisory body pursuant
to any state or federal law; or
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(ii) a cybersecurity event that has a reasonable likelihood of materially harming:
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(A) any consumer residing in this state; or
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(B) any part of the normal operations of the licensee.
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A licensee making the notification required under
subdivision 1 shall provide the information in electronic form as directed by the
commissioner. The licensee shall have a continuing obligation to update and supplement
initial and subsequent notifications to the commissioner concerning material changes to
previously provided information relating to the cybersecurity event. The licensee shall
provide as much of the following information as possible:
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(1) date of the cybersecurity event;
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(2) description of how the information was exposed, lost, stolen, or breached, including
the specific roles and responsibilities of third-party service providers, if any;
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(3) how the cybersecurity event was discovered;
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(4) whether any lost, stolen, or breached information has been recovered and, if so, how
this was done;
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(5) the identity of the source of the cybersecurity event;
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(6) whether the licensee has filed a police report or has notified any regulatory,
government, or law enforcement agencies and, if so, when such notification was provided;
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(7) description of the specific types of information acquired without authorization.
Specific types of information means particular data elements including, for example, types
of medical information, types of financial information, or types of information allowing
identification of the consumer;
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(8) the period during which the information system was compromised by the cybersecurity
event;
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(9) the number of total consumers in this state affected by the cybersecurity event. The
licensee shall provide the best estimate in the initial report to the commissioner and update
this estimate with each subsequent report to the commissioner pursuant to this section;
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(10) the results of any internal review identifying a lapse in either automated controls
or internal procedures, or confirming that all automated controls or internal procedures were
followed;
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(11) description of efforts being undertaken to remediate the situation which permitted
the cybersecurity event to occur;
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(12) a copy of the licensee's privacy policy and a statement outlining the steps the licensee
will take to investigate and notify consumers affected by the cybersecurity event; and
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(13) name of a contact person who is familiar with the cybersecurity event and authorized
to act for the licensee.
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(a) If a licensee is required to submit a report to
the commissioner under subdivision 1, the licensee shall notify any consumer residing in
Minnesota if, as a result of the cybersecurity event reported to the commissioner, the
consumer's nonpublic information was or is reasonably believed to have been acquired by
an unauthorized person, and there is a reasonable likelihood of material harm to the consumer
as a result of the cybersecurity event. Consumer notification is not required for a
cybersecurity event resulting from the good faith acquisition of nonpublic information by
an employee or agent of the licensee for the purposes of the licensee's business, provided
the nonpublic information is not used for a purpose other than the licensee's business or
subject to further unauthorized disclosure. The notification must be made in the most
expedient time possible and without unreasonable delay, consistent with the legitimate needs
of law enforcement or with any measures necessary to determine the scope of the breach,
identify the individuals affected, and restore the reasonable integrity of the data system.
The notification may be delayed to a date certain if the commissioner determines that
providing the notice impedes a criminal investigation. The licensee shall provide a copy of
the notice to the commissioner.
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(b) For purposes of this subdivision, notice required under paragraph (a) must be provided
by one of the following methods:
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(1) written notice to the consumer's most recent address in the licensee's records;
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(2) electronic notice, if the licensee's primary method of communication with the
consumer is by electronic means or if the notice provided is consistent with the provisions
regarding electronic records and signatures in United States Code, title 15, section 7001;
or
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(3) if the cost of providing notice exceeds $250,000, the affected class of consumers to
be notified exceeds 500,000, or the licensee does not have sufficient contact information
for the subject consumers, notice as follows:
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(i) e-mail notice when the licensee has an e-mail address for the subject consumers;
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(ii) conspicuous posting of the notice on the website page of the licensee; and
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(iii) notification to major statewide media.
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(c) Notwithstanding paragraph (b), a licensee that maintains its own notification procedure
as part of its information security program that is consistent with the timing requirements
of this subdivision is deemed to comply with the notification requirements if the licensee
notifies subject consumers in accordance with its program.
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(d) A waiver of the requirements under this subdivision is contrary to public policy, and
is void and unenforceable.
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(a)
In the case of a cybersecurity event in a system maintained by a third-party service provider,
of which the licensee has become aware, the licensee shall treat such event as it would under
subdivision 1 unless the third-party service provider provides the notice required under
subdivision 1.
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(b) The computation of a licensee's deadlines shall begin on the day after the third-party
service provider notifies the licensee of the cybersecurity event or the licensee otherwise
has actual knowledge of the cybersecurity event, whichever is sooner.
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(c) Nothing in this act shall prevent or abrogate an agreement between a licensee and
another licensee, a third-party service provider, or any other party to fulfill any of the
investigation requirements imposed under section 60A.9854 or notice requirements imposed
under this section.
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(a) In the
case of a cybersecurity event involving nonpublic information that is used by the licensee
that is acting as an assuming insurer or in the possession, custody, or control of a licensee
that is acting as an assuming insurer and that does not have a direct contractual relationship
with the affected consumers, the assuming insurer shall notify its affected ceding insurers
and the commissioner of its state of domicile within three business days of making the
determination that a cybersecurity event has occurred.
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(b) The ceding insurers that have a direct contractual relationship with affected consumers
shall fulfill the consumer notification requirements imposed under subdivision 3 and any
other notification requirements relating to a cybersecurity event imposed under this section.
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(c) In the case of a cybersecurity event involving nonpublic information that is in the
possession, custody, or control of a third-party service provider of a licensee that is an
assuming insurer, the assuming insurer shall notify its affected ceding insurers and the
commissioner of its state of domicile within three business days of receiving notice from
its third-party service provider that a cybersecurity event has occurred.
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(d) The ceding insurers that have a direct contractual relationship with affected consumers
shall fulfill the consumer notification requirements imposed under subdivision 3 and any
other notification requirements relating to a cybersecurity event imposed under this section.
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(e) Any licensee acting as an assuming insurer shall have no other notice obligations
relating to a cybersecurity event or other data breach under this section.
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(a)
In the case of a cybersecurity event involving nonpublic information that is in the possession,
custody, or control of a licensee that is an insurer or its third-party service provider and for
which a consumer accessed the insurer's services through an independent insurance producer,
the insurer shall notify the producers of record of all affected consumers no later than the
time at which notice is provided to the affected consumers.
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(b) The insurer is excused from this obligation for those instances in which it does not
have the current producer of record information for any individual consumer or in those
instances in which the producer of record is no longer appointed to sell, solicit, or negotiate
on behalf of the insurer.
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This section is effective August 1, 2021.
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(a) The commissioner of commerce or commissioner of health, whichever commissioner
otherwise regulates the licensee, shall have power to examine and investigate into the affairs
of any licensee to determine whether the licensee has been or is engaged in any conduct in
violation of sections 60A.985 to 60A.9857. This power is in addition to the powers which
the commissioner has under section 60A.031. Any such investigation or examination shall
be conducted pursuant to section 60A.031.
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(b) Whenever the commissioner of commerce or commissioner of health has reason to
believe that a licensee has been or is engaged in conduct in this state which violates sections
60A.985 to 60A.9857, the commissioner of commerce or commissioner of health may take
action that is necessary or appropriate to enforce those sections.
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new text begin
This section is effective August 1, 2021.
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Any documents, materials, or other information
in the control or possession of the department that are furnished by a licensee or an employee
or agent thereof acting on behalf of a licensee pursuant to section 60A.9851, subdivision
9; section 60A.9853, subdivision 2, clauses (2), (3), (4), (5), (8), (10), and (11); or that are
obtained by the commissioner in an investigation or examination pursuant to section
60A.9854 shall be classified as confidential, protected nonpublic, or both; shall not be
subject to subpoena; and shall not be subject to discovery or admissible in evidence in any
private civil action. However, the commissioner is authorized to use the documents, materials,
or other information in the furtherance of any regulatory or legal action brought as a part
of the commissioner's duties.
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Neither the commissioner nor any person who
received documents, materials, or other information while acting under the authority of the
commissioner shall be permitted or required to testify in any private civil action concerning
any confidential documents, materials, or information subject to subdivision 1.
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In order to assist in the performance of the commissioner's
duties under this act, the commissioner:
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(1) may share documents, materials, or other information, including the confidential and
privileged documents, materials, or information subject to subdivision 1, with other state,
federal, and international regulatory agencies, with the National Association of Insurance
Commissioners, its affiliates or subsidiaries, and with state, federal, and international law
enforcement authorities, provided that the recipient agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other information;
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(2) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information, from the National Association of
Insurance Commissioners, its affiliates or subsidiaries, and from regulatory and law
enforcement officials of other foreign or domestic jurisdictions, and shall maintain as
confidential or privileged any document, material, or information received with notice or
the understanding that it is confidential or privileged under the laws of the jurisdiction that
is the source of the document, material, or information;
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(3) may share documents, materials, or other information subject to subdivision 1, with
a third-party consultant or vendor provided the consultant agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other information; and
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(4) may enter into agreements governing sharing and use of information consistent with
this subdivision.
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No waiver of any applicable privilege
or claim of confidentiality in the documents, materials, or information shall occur as a result
of disclosure to the commissioner under this section or as a result of sharing as authorized
in subdivision 3. Any document, material, or information disclosed to the commissioner
under this section about a cybersecurity event must be retained and preserved by the licensee
for five years.
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Nothing in sections 60A.985 to 60A.9857 shall prohibit
the commissioner from releasing final, adjudicated actions that are open to public inspection
pursuant to chapter 13 to a database or other clearinghouse service maintained by the National
Association of Insurance Commissioners, its affiliates, or subsidiaries.
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Documents,
materials, or other information in the possession or control of the National Association of
Insurance Commissioners or a third-party consultant pursuant to sections 60A.985 to
60A.9857 are classified as confidential, protected nonpublic, and privileged; are not subject
to subpoena; and are not subject to discovery or admissible in evidence in a private civil
action.
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This section is effective August 1, 2021.
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The following exceptions shall apply to sections 60A.985 to
60A.9857:
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(1) a licensee with fewer than 25 employees is exempt from sections 60A.9851 and
60A.9852;
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(2) a licensee subject to and in compliance with the Health Insurance Portability and
Accountability Act, Public Law 104-191, 110 Stat. 1936 (HIPAA), is considered to comply
with sections 60A.9851, 60A.9852, and 60A.9853, subdivisions 3 to 5, provided the licensee
submits a written statement certifying its compliance with HIPAA;
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(3) a licensee affiliated with a depository institution that maintains an information security
program in compliance with the interagency guidelines establishing standards for
safeguarding customer information as set forth pursuant to United States Code, title 15,
sections 6801 and 6805, shall be considered to meet the requirements of section 60A.9851
provided that the licensee produce, upon request, documentation satisfactory to the
commission that independently validates the affiliated depository institution's adoption of
an information security program that satisfies the interagency guidelines;
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(4) an employee, agent, representative, or designee of a licensee, who is also a licensee,
is exempt from sections 60A.9851 and 60A.9852 and need not develop its own information
security program to the extent that the employee, agent, representative, or designee is covered
by the information security program of the other licensee; and
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(5) an employee, agent, representative, or designee of a producer licensee, as defined
under section 60K.31, subdivision 6, who is also a licensee, is exempt from sections 60A.985
to 60A.9857.
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In the event that a licensee ceases to qualify
for an exception, such licensee shall have 180 days to comply with this act.
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This section is effective August 1, 2021.
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In the case of a violation of sections 60A.985 to 60A.9856, a licensee may be penalized
in accordance with section 60A.052.
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new text begin
This section is effective August 1, 2021.
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new text begin
Notwithstanding any other provision of law, sections 60A.985 to 60A.9857 establish
the exclusive state standards applicable to licensees for data security, the investigation of
a cybersecurity event, and notification of a cybersecurity event.
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This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 61A.245, subdivision 4, is amended to read:
The minimum values as specified in subdivisions 5, 6, 7, 8
and 10 of any paid-up annuity, cash surrender or death benefits available under an annuity
contract shall be based upon minimum nonforfeiture amounts as defined in this subdivision.
(a) The minimum nonforfeiture amount at any time at or prior to the commencement of
any annuity payments shall be equal to an accumulation up to that time at rates of interest
as indicated in paragraph (b) of the net considerations, as defined in this subdivision, paid
prior to that time, decreased by the sum of clauses (1) through (4):
(1) any prior withdrawals from or partial surrenders of the contract accumulated at rates
of interest as indicated in paragraph (b);
(2) an annual contract charge of $50, accumulated at rates of interest as indicated in
paragraph (b);
(3) any premium tax paid by the company for the contract and not subsequently credited
back to the company, such as upon early termination of the contract, in which case this
decrease must not be taken, accumulated at rates of interest as indicated in paragraph (b);
and
(4) the amount of any indebtedness to the company on the contract, including interest
due and accrued.
The net considerations for a given contract year used to define the minimum nonforfeiture
amount shall be an amount equal to 87.5 percent of the gross considerations credited to the
contract during that contract year.
(b) The interest rate used in determining minimum nonforfeiture amounts must be an
annual rate of interest determined as the lesser of three percent per annum and the following,
which must be specified in the contract if the interest rate will be reset:
(1) the five-year constant maturity treasury rate reported by the Federal Reserve as of a
date, or average over a period, rounded to the nearest 1/20 of one percent, specified in the
contract no longer than 15 months prior to the contract issue date or redetermination date
under clause (4);
(2) reduced by 125 basis points;
(3) where the resulting interest rate is not less than deleted text begin onedeleted text end new text begin 0.15new text end percent; and
(4) the interest rate shall apply for an initial period and may be redetermined for additional
periods. The redetermination date, basis, and period, if any, shall be stated in the contract.
The basis is the date or average over a specified period that produces the value of the
five-year constant maturity treasury rate to be used at each redetermination date.
(c) During the period or term that a contract provides substantive participation in an
equity indexed benefit, it may increase the reduction described in clause (2) by up to an
additional 100 basis points to reflect the value of the equity index benefit. The present value
at the contract issue date, and at each redetermination date thereafter, of the additional
reduction must not exceed the market value of the benefit. The commissioner may require
a demonstration that the present value of the additional reduction does not exceed the market
value of the benefit. Lacking such a demonstration that is acceptable to the commissioner,
the commissioner may disallow or limit the additional reduction.
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This section is effective the day following final enactment.
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Minnesota Statutes 2020, section 62J.23, subdivision 2, is amended to read:
(a) From July 1, 1992, until rules are adopted by the commissioner
under this section, the restrictions in the federal Medicare antikickback statutes in section
1128B(b) of the Social Security Act, United States Code, title 42, section 1320a-7b(b), and
rules adopted under the federal statutes, apply to all persons in the state, regardless of whether
the person participates in any state health care program.
(b) Nothing in paragraph (a) shall be construed to prohibit an individual from receiving
a discount or other reduction in price or a limited-time free supply or samples of a prescription
drug, medical supply, or medical equipment offered by a pharmaceutical manufacturer,
medical supply or device manufacturer, health plan company, or pharmacy benefit manager,
so long as:
(1) the discount or reduction in price is provided to the individual in connection with
the purchase of a prescription drug, medical supply, or medical equipment prescribed for
that individual;
(2) it otherwise complies with the requirements of state and federal law applicable to
enrollees of state and federal public health care programs;
(3) the discount or reduction in price does not exceed the amount paid directly by the
individual for the prescription drug, medical supply, or medical equipment; and
(4) the limited-time free supply or samples are provided by a physician, advanced practice
registered nurse, or pharmacist, as provided by the federal Prescription Drug Marketing
Act.
For purposes of this paragraph, "prescription drug" includes prescription drugs that are
administered through infusionnew text begin , injection, or other parenteral methodsnew text end , and related services
and supplies.
(c) No benefit, reward, remuneration, or incentive for continued product use may be
provided to an individual or an individual's family by a pharmaceutical manufacturer,
medical supply or device manufacturer, or pharmacy benefit manager, except that this
prohibition does not apply to:
(1) activities permitted under paragraph (b);
(2) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan
company, or pharmacy benefit manager providing to a patient, at a discount or reduced
price or free of charge, ancillary products necessary for treatment of the medical condition
for which the prescription drug, medical supply, or medical equipment was prescribed or
provided; and
(3) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan
company, or pharmacy benefit manager providing to a patient a trinket or memento of
insignificant value.
(d) Nothing in this subdivision shall be construed to prohibit a health plan company
from offering a tiered formulary with different co-payment or cost-sharing amounts for
different drugs.
new text begin
(a) A health plan company shall not place a lifetime or annual limit on screenings and
urinalysis testing for opioids for an enrollee in an inpatient or outpatient substance use
disorder treatment program when the screening or testing is ordered by a health care provider
and performed by an accredited clinical laboratory. A health plan company is not prohibited
from conducting a medical necessity review when screenings or urinalysis testing for an
enrollee exceeds 24 tests in any 12-month period.
new text end
new text begin
(b) This section does not apply to managed care plans or county-based purchasing plans
when the plan provides coverage to public health care program enrollees under chapter
256B or 256L.
new text end
new text begin
This section is effective January 1, 2022, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2020, section 79.55, subdivision 10, is amended to read:
deleted text begin
The commissioner shall issue a report by
March 1 of each year, comparing the average rates charged by workers' compensation
insurers in the state to the pure premium base rates filed by the association, as reviewed by
the Rate Oversight Commission. The Rate Oversight Commission shall review the
commissioner's report and if the experience indicates that rates have not reasonably reflected
changes in pure premiums, the rate oversight commission shall recommend to the legislature
appropriate legislative changes to this chapter.
deleted text end
new text begin
(a) By March 1 of each year, the commissioner must issue a report that evaluates the
competitiveness of the workers' compensation market in Minnesota in order to evaluate
whether the competitive rating law is working.
new text end
new text begin
(b) The report under this subdivision must: (1) compare the average rates charged by
workers' compensation insurers in Minnesota with the pure premium base rates filed by the
association; and (2) provide market information, including but not limited to the number of
carriers, market shares, the loss-cost multipliers used by companies, and the residual market
and self-insurance.
new text end
new text begin
(c) The commissioner must provide the report to the Rate Oversight Commission for
review. If after reviewing the report the Rate Oversight Commission concludes that concerns
exist regarding the competitiveness of the workers' compensation market in Minnesota, the
Rate Oversight Commission must recommend to the legislature appropriate modifications
to this chapter.
new text end
Minnesota Statutes 2020, section 79.61, subdivision 1, is amended to read:
new text begin (a) new text end Any data service organization shall perform the
following activities:
(1) file statistical plans, including classification definitions, amendments to the plans,
and definitions, with the commissioner for approval, and assign each compensation risk
written by its members to its approved classification for reporting purposes;
(2) establish requirements for data reporting and monitoring methods to maintain a high
quality database;
(3) prepare and distribute a periodic report, in a form prescribed by the commissioner,
on ratemaking includingdeleted text begin ,deleted text end but not limited to the following elements:
(i) deleted text begin development factors and alternative derivationsdeleted text end new text begin losses developed to their ultimate
levelnew text end ;
(ii) deleted text begin trend factors and alternative derivations and applicationsdeleted text end new text begin trended lossesnew text end ;
(iii)new text begin loss adjustment expenses;
new text end
new text begin (iv)new text end pure premium relativities for the approved classification system for which data are
reported, provided that the relativities for insureds engaged in similar occupations and
presenting substantially similar risks shall, if different, differ by at least ten percent; and
deleted text begin (iv)deleted text end new text begin (v)new text end an evaluation of the effects of changes in law on loss datadeleted text begin .deleted text end new text begin ;
new text end
deleted text begin
The report shall also include explicit discussion and explanation of methodology,
alternatives examined, assumptions adopted, and areas of judgment and reasoning supporting
judgments entered into, and the effect of various combinations of these elements on
indications for modification of an overall pure premium rate level change. The pure premium
relativities and rate level indications shall not include a loading for expenses or profit and
no expense or profit data or recommendations relating to expense or profit shall be included
in the report or collected by a data service organization;
deleted text end
(4) collect, compile, summarize, and distribute data from members or other sources
pursuant to a statistical plan approved by the commissioner;
(5) prepare merit rating plan and calculate any variable factors necessary for utilization
of the plan. Such a plan may be used by any of its members, at the option of the member
provided that the application of a plan shall not result in rates that are unfairly discriminatory;
(6) provide loss data specific to an insured to the insured at a reasonable cost;
(7) distribute information to an insured or interested party that is filed with the
commissioner and is open to public inspection; and
(8) assess its members for operating expenses on a fair and equitable basis.
new text begin
(b) The report under paragraph (a), clause (3), shall also include explicit discussion and
explanation of methodology, alternatives examined, assumptions adopted, and areas of
judgment and reasoning supporting judgments entered into, and the effect of various
combinations of these elements on indications for modification of an overall pure premium
rate level change. The pure premium relativities and rate level indications shall not include
a loading for expenses or profit and no expense or profit data or recommendations relating
to expense or profit shall be included in the report or collected by a data service organization.
For purposes of this subdivision, "expenses" means expenses other than loss adjustment
expenses.
new text end
Minnesota Statutes 2020, section 80G.06, subdivision 1, is amended to read:
new text begin (a) new text end 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 the transactionsnew text begin conducted with Minnesota consumersnew text end (purchases from
and sales to consumers at retail) during the 12-month period prior to registration, or renewal,
whichever is applicable.
new text begin (b) new text end 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 $25,000deleted text end new text begin $0new 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 |
new text begin
A 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.
new text end
Minnesota Statutes 2020, section 82.57, subdivision 1, is amended to read:
The following fees shall be paid to the commissioner:
(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for each
renewal thereof;
(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each renewal
thereof;
(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 for each
renewal thereof;
(d) a fee of $150 for each initial corporate, limited liability company, or partnership
license, and a fee of $100 for each renewal thereof;
(e) a fee for payment to the education, research and recovery fund in accordance with
section 82.86;
(f) a fee of $20 for each transfer;
deleted text begin
(g) a fee of $50 for license reinstatement;
deleted text end
deleted text begin (h)deleted text end new text begin (g)new text end a fee of $20 for reactivating a corporate, limited liability company, or partnership
license; and
deleted text begin (i)deleted text end new text begin (h)new text end in addition to the fees required under this subdivision, individual licensees under
clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge as
permitted under that section.
Minnesota Statutes 2020, section 82.57, subdivision 5, is amended to read:
deleted text begin
If an initial license issued under
subdivision 1, paragraph (a), (b), (c), or (d) expires less than 12 months after issuance, the
license fee shall be reduced by an amount equal to one-half the fee for a renewal of the
license.
deleted text end
new text begin
An
new text end
new text begin
initial license issued under this chapter expires in the year that results in the
term of the license being at least 12 months, but no more than 24 months.
new text end
Minnesota Statutes 2020, section 82.62, subdivision 3, is amended to read:
A person deleted text begin whose application for a license renewal has not
been timely submitted anddeleted text end who has not received notice of approval of renewal may not
continue to transact business either as a real estate broker, salesperson, or closing agent
after June 30 of the renewal year until approval of renewal is received. Application for
renewal of a license is timely submitted ifdeleted text begin :deleted text end new text begin all requirements for renewal, including continuing
education requirements, have been completed and reported pursuant to section 45.43,
subdivision 1.
new text end
deleted text begin
(1) all requirements for renewal, including continuing education requirements, have
been completed by June 15 of the renewal year; and
deleted text end
deleted text begin
(2) the application is submitted before the renewal deadline in the manner prescribed
by the commissioner, duly executed and sworn to, accompanied by fees prescribed by this
chapter, and containing any information the commissioner requires.
deleted text end
Minnesota Statutes 2020, section 82.81, subdivision 12, is amended to read:
(a) Prohibitions. For the
purposes of section 82.82, subdivision 1, clause (b), the following acts and practices constitute
fraudulent, deceptive, or dishonest practices:
(1) act on behalf of more than one party to a transaction without the knowledge and
consent of all parties;
(2) act in the dual capacity of licensee and undisclosed principal in any transaction;
(3) receive funds while acting as principal which funds would constitute trust funds if
received by a licensee acting as an agent, unless the funds are placed in a trust account.
Funds need not be placed in a trust account if a written agreement signed by all parties to
the transaction specifies a different disposition of the funds, in accordance with section
82.82, subdivision 1;
(4) violate any state or federal law concerning discrimination intended to protect the
rights of purchasers or renters of real estate;
(5) make a material misstatement in an application for a license or in any information
furnished to the commissioner;
(6) procure or attempt to procure a real estate license for deleted text begin himself or herselfdeleted text end new text begin the procuring
individualnew text end or any person by fraud, misrepresentation, or deceit;
(7) represent membership in any real estate-related organization in which the licensee
is not a member;
(8) advertise in any manner that is misleading or inaccurate with respect to properties,
terms, values, policies, or services conducted by the licensee;
(9) make any material misrepresentation or permit or allow another to make any material
misrepresentation;
(10) make any false or misleading statements, or permit or allow another to make any
false or misleading statements, of a character likely to influence, persuade, or induce the
consummation of a transaction contemplated by this chapter;
(11) fail within a reasonable time to account for or remit any money coming into the
licensee's possession which belongs to another;
(12) commingle with deleted text begin his or herdeleted text end new text begin the individual'snew text end own money or property trust funds or
any other money or property of another held by the licensee;
(13) new text begin a new text end demand from a sellernew text begin fornew text end a commission deleted text begin todeleted text end new text begin ornew text end compensationnew text begin tonew text end which the licensee
is not entitled, knowing that deleted text begin he or shedeleted text end new text begin the individualnew text end is not entitled to the commissionnew text begin ornew text end
compensation;
(14) pay or give money or goods of value to an unlicensed person for any assistance or
information relating to the procurement by a licensee of a listing of a property or of a
prospective buyer of a property (this item does not apply to money or goods paid or given
to the parties to the transaction);
(15) fail to maintain a trust account at all times, as provided by law;
(16) engage, with respect to the offer, sale, or rental of real estate, in an anticompetitive
activity;
(17) represent on advertisements, cards, signs, circulars, letterheads, or in any other
manner, that deleted text begin he or shedeleted text end new text begin the individualnew text end is engaged in the business of financial planning unless
deleted text begin he or shedeleted text end new text begin the individualnew text end provides a disclosure document to the client. The document must
be signed by the client and a copy must be left with the client. The disclosure document
must contain the following:
(i) the basis of fees, commissions, or other compensation received by deleted text begin him or herdeleted text end new text begin an
individualnew text end in connection with rendering of financial planning services or financial counseling
or advice in the following language:
"My compensation may be based on the following:
(a) ... commissions generated from the products I sell you;
(b) ... fees; or
(c) ... a combination of (a) and (b). [Comments]";
(ii) the name and address of any company or firm that supplies the financial services or
products offered or sold by deleted text begin him or herdeleted text end new text begin an individualnew text end in the following language:
"I am authorized to offer or sell products and/or services issued by or through the
following firm(s):
[List]
The products will be traded, distributed, or placed through the clearing/trading firm(s)
of:
[List]";
(iii) the license(s) held by the person under this chapter or chapter 60A or 80A in the
following language:
"I am licensed in Minnesota as a(n):
(a) ... insurance agent;
(b) ... securities agent or broker/dealer;
(c) ... real estate broker or salesperson;
(d) ... investment adviser"; and
(iv) the specific identity of any financial products or services, by category, for example
mutual funds, stocks, or limited partnerships, the person is authorized to offer or sell in the
following language:
"The license(s) entitles me to offer and sell the following products and/or services:
(a) ... securities, specifically the following: [List];
(b) ... real property;
(c) ... insurance; and
(d) ... other: [List]."
(b) Determining violation. A licensee shall be deemed to have violated this section if
the licensee has been found to have violated sections 325D.49 to 325D.66, by a final decision
or order of a court of competent jurisdiction.
(c) Commissioner's authority. Nothing in this section limits the authority of the
commissioner to take actions against a licensee for fraudulent, deceptive, or dishonest
practices not specifically described in this section.
Minnesota Statutes 2020, section 82B.021, subdivision 18, is amended to read:
"Licensed real property appraiser" means
an individual licensed under this chapter to perform appraisals on noncomplex one-family
to four-family residential units or agricultural property having a transactional value of less
than $1,000,000 and complex one-family to four-family residential units or agricultural
property having a transactional value of less than deleted text begin $250,000deleted text end new text begin $400,000new text end .
Minnesota Statutes 2020, section 82B.11, subdivision 3, is amended to read:
A licensed residential real
property appraiser may appraise noncomplex residential property or agricultural property
having a transaction value less than $1,000,000 and complex residential or agricultural
property having a transaction value less than deleted text begin $250,000deleted text end new text begin $400,000new text end .
Minnesota Statutes 2020, section 256B.0625, subdivision 10, is amended to read:
new text begin (a) new text end Medical assistance covers laboratory and
x-ray services.
new text begin
(b) Medical assistance covers screening and urinalysis tests for opioids without lifetime
or annual limits.
new text end
new text begin
This section is effective January 1, 2022.
new text end
new text begin
The commissioner shall amend Minnesota Rules, parts 2705.1000, item B, subitem (4);
2705.0200, subpart 7; 2705.1700, subpart 2; and 2705.1800, item B, or other parts of
Minnesota Rules, chapter 2705, as necessary to permit a data service organization to collect
loss adjustment expense data and to consider and include in its ratemaking report losses
developed to their ultimate value, trended losses, and loss adjustment expenses. The
commissioner may use the expedited rulemaking procedures under Minnesota Statutes,
section 14.389.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2020, sections 60A.98; 60A.981; and 60A.982,
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 45.017,
new text end
new text begin
is repealed.
new text end
Minnesota Statutes 2020, section 62J.03, subdivision 4, is amended to read:
"Commissioner" means the commissioner of healthnew text begin , unless
another commissioner is specifiednew text end .
Minnesota Statutes 2020, section 62J.26, subdivision 1, is amended to read:
For purposes of this section, the following terms have the
meanings given unless the context otherwise requires:
(1) "commissioner" means the commissioner of commerce;
new text begin
(2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;
new text end
deleted text begin (2)deleted text end new text begin (3)new text end "health plan" means a health plan as defined in section 62A.011, subdivision 3,
but includes coverage listed in clauses (7) and (10) of that definition;
deleted text begin (3)deleted text end new text begin (4)new text end "mandated health benefit proposal" new text begin or "proposal" new text end means a proposal that would
statutorily require a health plan new text begin company new text end to do the following:
(i) provide coverage or increase the amount of coverage for the treatment of a particular
disease, condition, or other health care need;
(ii) provide coverage or increase the amount of coverage of a particular type of health
care treatment or service or of equipment, supplies, or drugs used in connection with a health
care treatment or service; deleted text begin or
deleted text end
(iii) provide coverage for care delivered by a specific type of providerdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(iv) require a particular benefit design or impose conditions on cost-sharing for:
new text end
new text begin
(A) the treatment of a particular disease, condition, or other health care need;
new text end
new text begin
(B) a particular type of health care treatment or service; or
new text end
new text begin
(C) the provision of medical equipment, supplies, or a prescription drug used in
connection with treating a particular disease, condition, or other health care need; or
new text end
new text begin
(v) impose limits or conditions on a contract between a health plan company and a health
care provider.
new text end
"Mandated health benefit proposal" does not include health benefit proposals amending
the scope of practice of a licensed health care professional.
Minnesota Statutes 2020, section 62J.26, subdivision 2, is amended to read:
(a) The commissioner, in consultation with
the commissioners of health and management and budget, must evaluate new text begin all new text end 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 followingnew text begin to the extent applicablenew text end :
(1) scientific and medical information on the deleted text begin proposed health benefitdeleted text end new text begin mandated health
benefit proposalnew text end , on the potential for harm or benefit to the patient, and on the comparative
benefit or harm from alternative forms of treatmentnew text begin , 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 therapynew text end ;
(2) public health, economic, and fiscal impacts of the deleted text begin proposed mandatedeleted text end new text begin mandated health
benefit proposalnew text end on persons receiving health services in Minnesota, on the relative
cost-effectiveness of the deleted text begin benefitdeleted text end new text begin proposalnew text end , and on the health care system in general;
(3) the extent to which the new text begin treatment, new text end servicenew text begin , equipment, or drugnew text end is generally utilized
by a significant portion of the population;
(4) the extent to which insurance coverage for the deleted text begin proposed mandated benefitdeleted text end new text begin mandated
health benefit proposalnew text end is already generally available;
new text begin
(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;
new text end
deleted text begin (5)deleted text end new text begin (6)new text end the extent to which the deleted text begin mandated coveragedeleted text end new text begin mandated health benefit proposalnew text end will
increase or decrease the cost of the new text begin treatment, new text end servicenew text begin , equipment, or drugnew text end ; deleted text begin and
deleted text end
new text begin
(7) the extent to which the mandated health benefit proposal may increase enrollee
premiums; and
new text end
new text begin
(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.
new text end
deleted text begin (6)deleted text end new text begin (c)new text end The commissioner deleted text begin maydeleted text end new text begin shallnew text end consider actuarial analysis done by health deleted text begin insurersdeleted text end new text begin
plan companies and any other proponent or opponent of the mandated health benefit proposalnew text end
in determining the cost of the deleted text begin proposed mandated benefitdeleted text end new text begin proposalnew text end .
deleted text begin (c)deleted text end new text begin (d)new text end 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.
Minnesota Statutes 2020, section 62J.26, subdivision 3, is amended to read:
(a) deleted text begin Whenever a legislative measure
containing a mandated health benefit proposal is introduced as a bill or offered as an
amendment to a bill, or is likely to be introduced as a bill or offered as an amendment, adeleted text end new text begin
No later than August 1 of the year preceding the legislative session in which a legislator is
planning on introducing a bill containing a mandated health benefit proposal, or is planning
on offering an amendment to a bill that adds a mandated health benefit, the prospective
author must notify the chair of one of the standing legislative committees that have
jurisdiction over the subject matter of the proposal. No later than 15 days after notification
is received, thenew text end chair deleted text begin of any standing legislative committee that has jurisdiction over the
subject matter of the proposal may request thatdeleted text end new text begin must notifynew text end the commissioner deleted text begin completedeleted text end new text begin thatnew text end
an evaluation of deleted text begin thedeleted text end new text begin a mandated health benefitnew text end proposal deleted text begin under this section, todeleted text end new text begin is required to
be completed in accordance with this section in order tonew text end inform deleted text begin any committee of floordeleted text end new text begin the
legislature before anynew text end action new text begin is taken on the proposal new text end by either house of the legislature.
(b) The commissioner must conduct an evaluation described in subdivision 2 of each
mandated health benefit proposal for which an evaluation is deleted text begin requesteddeleted text end new text begin requirednew text end under
paragraph (a)deleted text begin , unless the commissioner determines under paragraph (c) or subdivision 4
that priorities and resources do not permit its evaluationdeleted text end .
(c) If deleted text begin requests fordeleted text end new text begin thenew text end evaluation of multiple proposals are deleted text begin receiveddeleted text end new text begin requirednew text end , the
commissioner must consult with the chairs of the standing legislative committees having
jurisdiction over the subject matter of the mandated health benefit proposals to prioritize
the deleted text begin requestsdeleted text end new text begin evaluationsnew text end and establish a reporting date for each proposal to be evaluated.
deleted text begin The commissioner is not required to direct an unreasonable quantity of the commissioner's
resources to these evaluations.
deleted text end
Minnesota Statutes 2020, section 62J.26, subdivision 4, is amended to read:
(a) The commissioner deleted text begin needdeleted text end new text begin shallnew text end not use any funds for
purposes of this section other than as provided in this subdivision or as specified in an
appropriation.
(b) The commissioner may seek and accept funding from sources other than the state to
pay for evaluations under this section to supplement or replace state appropriations. Any
money received under this paragraph must be deposited in the state treasury, credited to a
separate account for this purpose in the special revenue fund, and is appropriated to the
commissioner for purposes of this section.
(c) If deleted text begin a request fordeleted text end an evaluation new text begin is required new text end under this section deleted text begin has been madedeleted text end , the
commissioner may use for purposes of the evaluation:
(1) any funds appropriated to the commissioner specifically for purposes of this section;
or
(2) funds available under paragraph (b), if use of the funds for evaluation of that mandated
health benefit proposal is consistent with any restrictions imposed by the source of the funds.
(d) The commissioner must ensure that the source of the funding has no influence on
the process or outcome of the evaluation.
Minnesota Statutes 2020, section 62J.26, subdivision 5, is amended to read:
The commissioner must submit a written report on the
evaluation to the deleted text begin legislaturedeleted text end new text begin author of the proposal and to the chairs and ranking minority
members of the legislative committees with jurisdiction over health insurance policy and
financenew text end no later than 180 days after the deleted text begin request. The report must be submitted in compliance
with sections 3.195 and 3.197deleted text end new text begin commissioner receives notification from a chair as required
under subdivision 3new text end .
Minnesota Statutes 2020, section 332.31, subdivision 3, is amended to read:
"Collection agency"new text begin or "licensee"new text end means deleted text begin and includes anydeleted text end new text begin
(1) anew text end person engaged in the business of collection for others any account, billnew text begin ,new text end or other
indebtednessnew text begin ,new text end except as hereinafter providednew text begin ; or (2) a debt buyernew text end . It includes persons who
furnish collection systems carrying a name which simulates the name of a collection agency
and who supply forms or form letters to be used by the creditor, even though such forms
direct the debtor to make payments directly to the creditor rather than to such fictitious
agency.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.31, subdivision 6, is amended to read:
"Collector" is a person acting under the authority of a collection
agency under subdivision 3new text begin or a debt buyer under subdivision 8new text end , and on its behalf in the
business of collection for deleted text begin othersdeleted text end an account, bill, or other indebtedness except as otherwise
provided in this chapter.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:
new text begin
"Debt buyer" means a business engaged in the purchase of any
charged-off account, bill, or other indebtedness for collection purposes, whether the business
collects the account, bill, or other indebtedness, hires a third party for collection, or hires
an attorney for litigation related to the collection.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:
new text begin
"Affiliated company" means a company that: (1) directly
or indirectly controls, is controlled by, or is under common control with another company
or companies; (2) has the same executive management team or owner that exerts control
over the business operations of the company; (3) maintains a uniform network of corporate
and compliance policies and procedures; and (4) does not engage in active collection of
debts.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.311, is amended to read:
The powers, duties, and responsibilities of the consumer services section under sections
332.31 to 332.44 relating to collection agenciesnew text begin and debt buyersnew text end are hereby transferred to
and imposed upon the commissioner of commerce.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.32, is amended to read:
(a) The term "collection agency" deleted text begin shalldeleted text end new text begin doesnew text end not include deleted text begin persons whose collection activities
are confined to and are directly related to the operation of a business other than that of a
collection agency such as, but not limited todeleted text end banks when collecting accounts owed to the
banks and when the bank will sustain any loss arising from uncollectible accounts, abstract
companies doing an escrow business, real estate brokers, public officers, persons acting
under order of a court, lawyers, trust companies, insurance companies, credit unions, savings
associations, loan or finance companies unless they are engaged in asserting, enforcing or
prosecuting unsecured claims which have been purchased from any person, firm, or
association when there is recourse to the seller for all or part of the claim if the claim is not
collected.
(b) The term "collection agency" shall not include a trade association performing services
authorized by section 604.15, subdivision 4a, but the trade association in performing the
services may not engage in any conduct that would be prohibited for a collection agency
under section 332.37.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 1, is amended to read:
Except as otherwise provided in this chapter, no person
shall conduct deleted text begin within this state a collection agency or engage within this state in the business
of collecting claims for othersdeleted text end new text begin business in Minnesota as a collection agency or debt buyer,new text end
as defined in sections 332.31 to 332.44, without having first applied for and obtained a
collection agency license. A person acting under the authority of a collection agency,new text begin debt
buyer, ornew text end as a collectordeleted text begin ,deleted text end must first register with the commissioner under this section. A
registered collector may use one additional assumed name only if the assumed name is
registered with and approved by the commissioner.new text begin A business that operates as a debt buyer
must submit a completed license application no later than January 1, 2022. A debt buyer
who has filed an application with the commissioner for a collection agency license prior to
January 1, 2022, and whose application remains pending with the commissioner thereafter,
may continue to operate without a license until the commissioner approves or denies the
application.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 2, is amended to read:
A person who carries on business as a collection agencynew text begin or debt buyernew text end
without first having obtained a license or acts as a collector without first having registered
with the commissioner pursuant to sections 332.31 to 332.44, or who carries on this business
after the revocation, suspension, or expiration of a license or registration is guilty of a
misdemeanor.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 5, is amended to read:
On finding that an applicant for a
deleted text begin collection agencydeleted text end license is not qualified under sections 332.31 to 332.44, the commissioner
shall reject the application and shall give the applicant written notice of the rejection and
the reasons for the rejection.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 5a, is amended to read:
A deleted text begin licensed collection agencydeleted text end new text begin licenseenew text end , on
behalf of an individual collector, must register with the state all individuals in the deleted text begin collection
agency'sdeleted text end new text begin licensee'snew text end employ who are performing the duties of a collector as defined in sections
332.31 to 332.44. The deleted text begin collection agencydeleted text end new text begin licenseenew text end must apply for an individual collection
registration in a form prescribed by the commissioner. The deleted text begin collection agencydeleted text end new text begin licenseenew text end shall
verify on the form that the applicant has confirmed that the applicant meets the requirements
to perform the duties of a collector as defined in sections 332.31 to 332.44. Upon submission
of the application to the department, the individual may begin to perform the duties of a
collector and may continue to do so unless the deleted text begin licensed collection agencydeleted text end new text begin licenseenew text end is informed
by the commissioner that the individual is ineligible.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 7, is amended to read:
(a) A deleted text begin licensed collection agencydeleted text end new text begin licenseenew text end
must give the commissioner written notice of a change in company name, address, or
ownership not later than ten days after the change occurs. A registered individual collector
must give written notice of a change of address, name, or assumed name no later than ten
days after the change occurs.
(b) Upon the death of any deleted text begin collection agencydeleted text end licensee, the license of the decedent may
be transferred to the executor or administrator of the estate for the unexpired term of the
license. The executor or administrator may be authorized to continue or discontinue the
collection business of the decedent under the direction of the court having jurisdiction of
the probate.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, subdivision 8, is amended to read:
(a) Each deleted text begin licensed collection agencydeleted text end new text begin licenseenew text end
must establish procedures to follow when screening an individual collector applicant prior
to submitting an applicant to the commissioner for initial registration and at renewal.
(b) The screening process for initial registration must be done at the time of hiring. The
process must include a national criminal history record search, an attorney licensing search,
and a county criminal history search for all counties where the applicant has resided within
the five years immediately preceding the initial registration, to determine whether the
applicant is eligible to be registered under section 332.35. Each deleted text begin licensed collection agencydeleted text end new text begin
licenseenew text end shall use a vendor that is a member of the National Association of Professional
Background Screeners, or an equivalent vendor, to conduct this background screening
process.
(c) Screening for renewal of individual collector registration must include a national
criminal history record search and a county criminal history search for all counties where
the individual has resided during the immediate preceding year. Screening for renewal of
individual collector registrations must take place no more than 60 days before the license
expiration or renewal date. A renewal screening is not required if an individual collector
has been subjected to an initial background screening within 12 months of the first registration
renewal date. A renewal screening is required for all subsequent annual registration renewals.
(d) The commissioner may review the procedures to ensure the integrity of the screening
process. Failure by a deleted text begin licensed collection agencydeleted text end new text begin licenseenew text end to establish these procedures is
subject to action under section 332.40.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.33, is amended by adding a subdivision to
read:
new text begin
The commissioner must permit affiliated companies to
operate under a single license and be subject to a single examination, provided that all of
the affiliated company names are listed on the license.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.34, is amended to read:
The commissioner of commerce shall require each deleted text begin collection agencydeleted text end licensee to file and
maintain in force a corporate surety bond, in a form to be prescribed by, and acceptable to,
the commissioner, and in a sum of at least $50,000 plus an additional $5,000 for each
$100,000 received by the collection agency from debtors located in Minnesota during the
previous calendar year, less commissions earned by the collection agency on those collections
for the previous calendar year. The total amount of the bond shall not exceed $100,000. A
deleted text begin collection agencydeleted text end new text begin licenseenew text end may deposit cash in and with a depository acceptable to the
commissioner in an amount and in the manner prescribed and approved by the commissioner
in lieu of a bond.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.345, is amended to read:
A payment collected by a collector or collection agency on behalf of a customer shall
be held by the collector or collection agency in a separate trust account clearly designated
for customer funds. The account must be in a bank or other depository institution authorized
or chartered under the laws of any state or of the United States.new text begin This section does not apply
to a debt buyer, except to the extent the debt buyer engages in third-party debt collection
for others.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.355, is amended to read:
The commissioner may take action against a deleted text begin collection agencydeleted text end new text begin licenseenew text end for any violations
of debt collection laws by its debt collectors. The commissioner may also take action against
the debt collectors themselves for these same violations.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.37, is amended to read:
new text begin (a) new text end No collection agencynew text begin , debt buyer,new text end or collector shall:
(1) in collection letters or publications, or in any communication, oral or written threaten
wage garnishment or legal suit by a particular lawyer, unless it has actually retained the
lawyer;
(2) use or employ sheriffs or any other officer authorized to serve legal papers in
connection with the collection of a claim, except when performing their legally authorized
duties;
(3) use or threaten to use methods of collection which violate Minnesota law;
(4) furnish legal advice or otherwise engage in the practice of law or represent that it is
competent to do so;
(5) communicate with debtors in a misleading or deceptive manner by using the stationery
of a lawyer, forms or instruments which only lawyers are authorized to prepare, or
instruments which simulate the form and appearance of judicial process;
(6) exercise authority on behalf of a deleted text begin creditordeleted text end new text begin clientnew text end to employ the services of lawyers
unless the deleted text begin creditordeleted text end new text begin clientnew text end has specifically authorized the agency in writing to do so and the
agency's course of conduct is at all times consistent with a true relationship of attorney and
client between the lawyer and the deleted text begin creditordeleted text end new text begin clientnew text end ;
(7) publish or cause to be published any list of debtors except for credit reporting
purposes, use shame cards or shame automobiles, advertise or threaten to advertise for sale
any claim as a means of forcing payment thereof, or use similar devices or methods of
intimidation;
(8) refuse to return any claim or claims and all valuable papers deposited with a claim
or claims upon written request of the deleted text begin creditordeleted text end new text begin clientnew text end , claimant or forwarder after tender of
the amounts due and owing to deleted text begin thedeleted text end new text begin a collectionnew text end agency within 30 days after the request;
refuse or intentionally fail to account to its clients for all money collected within 30 days
from the last day of the month in which the same is collected; or, refuse or fail to furnish
at intervals of not less than 90 days upon written request of the claimant or forwarder, a
written report upon claims received from the claimant or forwarder;
(9) operate under a name or in a manner which implies that thenew text begin collectionnew text end agencynew text begin or debt
buyernew text end is a branch of or associated with any department of federal, state, county or local
government or an agency thereof;
(10) commingle money collected for a customer with thenew text begin collectionnew text end agency's operating
funds or use any part of a customer's money in the conduct of thenew text begin collectionnew text end agency's
business;
(11) transact business or hold itself out as a debt deleted text begin proraterdeleted text end new text begin settlement company, debt
management companynew text end , debt adjuster, or any person who settles, adjusts, prorates, pools,
liquidates or pays the indebtedness of a debtor, unless there is no charge to the debtor, or
the pooling or liquidation is done pursuant to court order or under the supervision of a
creditor's committee;
(12) violate any of the provisions of the Fair Debt Collection Practices Act of 1977,
Public Law 95-109, while attempting to collect on any account, bill or other indebtedness;
(13) communicate with a debtor by use of a recorded message utilizing an automatic
dialing announcing device deleted text begin unless the recorded message is immediately preceded by a live
operator who discloses prior to the message the name of the collection agency and the fact
the message intends to solicit payment and the operator obtains the consent of the debtor
to hearing the messagedeleted text end new text begin after the debtor expressly informs the agency or collector to cease
communication utilizing an automatic dialing announcing devicenew text end ;
(14) in collection letters or publications, or in any communication, oral or written, imply
or suggest that health care services will be withheld in an emergency situation;
(15) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
party to request that the debtor contact the licensee or collector, except a person who resides
with the debtor or a third party with whom the debtor has authorized the licensee or collector
to place the request. This clause does not apply to a call back message left at the debtor's
place of employment which is limited to the licensee's or collector's telephone number and
name;
(16) when attempting to collect a debt, fail to provide the debtor with the full name of
the collection agencynew text begin or debt buyernew text end as it appears on its licensenew text begin or as listed on any "doing
business as" or "d/b/a" registered with the Department of Commercenew text end ;
(17) collect any money from a debtor that is not reported to a deleted text begin creditor ordeleted text end new text begin client;
new text end
new text begin (18) new text end fail to return any amount of overpayment from a debtor to the debtor or to the state
of Minnesota pursuant to the requirements of chapter 345;
deleted text begin (18)deleted text end new text begin (19)new text end accept currency or coin as payment for a debt without issuing an original receipt
to the debtor and maintaining a duplicate receipt in the debtor's payment records;
deleted text begin (19)deleted text end new text begin (20)new text end attempt to collect any amount deleted text begin of moneydeleted text end new text begin , including any interest, fee, charge,
or expense incidental to the charge-off obligation,new text end from a debtor deleted text begin ordeleted text end new text begin unless the amount is
expressly authorized by the agreement creating the debt or is otherwise permitted by law;
new text end
new text begin (21) new text end charge a fee to a deleted text begin creditordeleted text end new text begin clientnew text end that is not authorized by agreement with the client;
deleted text begin (20)deleted text end new text begin (22)new text end falsify any collection agency documents with the intent to deceive a debtor,
creditor, or governmental agency;
deleted text begin (21)deleted text end new text begin (23)new text end when initially contacting a Minnesota debtor by mail, fail to include a disclosure
on the contact notice, in a type size or font which is equal to or larger than the largest other
type of type size or font used in the text of the notice. The disclosure must state: "This
collection agency is licensed by the Minnesota Department of Commerce"new text begin or "This debt
buyer is licensed by the Minnesota Department of Commerce" as applicablenew text end ; or
deleted text begin (22)deleted text end new text begin (24)new text end commence legal action to collect a debt outside the limitations period set forth
in section 541.053.
new text begin
(b) Paragraph (a), clauses (6), (8), (10), (17), and (21), do not apply to debt buyers except
to the extent the debt buyer engages in third-party debt collection for others.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.385, is amended to read:
The collection agencynew text begin or debt buyernew text end licensee shall notify the commissioner of any
employee termination within ten days of the termination if deleted text begin itdeleted text end new text begin the terminationnew text end isnew text begin basednew text end in
whole or in part deleted text begin baseddeleted text end on a violation of this chapter.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.40, subdivision 3, is amended to read:
new text begin (a) new text end For the purpose of any investigation or proceeding
under sections 332.31 to 332.44, the commissioner or any person designated by the
commissioner may administer oaths and affirmations, subpoena collection agenciesnew text begin , debt
buyers,new text end or collectors and compel their attendance, take evidence and require the production
of any books, papers, correspondence, memoranda, agreements or other documents or
records which the commissioner deems relevant or material to the inquiry. The subpoena
shall contain a written statement setting forth the circumstances which have reasonably
caused the commissioner to believe that a violation of sections 332.31 to 332.44 may have
occurred.
new text begin (b) new text end In the event that the collection agencynew text begin , debt buyer,new text end or collector refuses to obey the
subpoena, or should the commissioner, upon completion of the examination of the collection
agencynew text begin , debt buyer,new text end or collector, reasonably conclude that a violation has occurred, the
commissioner may examine additional witnesses, including third parties, as may be necessary
to complete the investigation.
new text begin (c) new text end Any subpoena issued pursuant to this section shall be served by certified mail or by
personal service. Service shall be made at least 15 days prior to the date of appearance.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.42, subdivision 1, is amended to read:
The commissioner of commerce may at
any time require a deleted text begin collection agencydeleted text end licensee to submit a verified financial statement for
examination by the commissioner to determine whether the deleted text begin collection agencydeleted text end licensee is
financially responsible to carry on a collection deleted text begin agencydeleted text end business within the intents and
purposes of sections 332.31 to 332.44.
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 332.42, subdivision 2, is amended to read:
The commissioner shall require the collection agencynew text begin or debt
buyernew text end licensee to keep such books and records in the licensee's place of business in this
state as will enable the commissioner to determine whether there has been compliance with
the provisions of sections 332.31 to 332.44, unless the agency is a foreign corporation duly
authorized, admitted, and licensed to do business in this state and complies with all the
requirements of chapter 303 and with all other requirements of sections 332.31 to 332.44.
Every collection agency licensee shall preserve the records of final entry used in such
business for a period of five years after final remittance is made on any amount placed with
the licensee for collection or after any account has been returned to the claimant on which
one or more payments have been made.new text begin Every debt buyer licensee must preserve the records
of final entry used in the business for a period of five years after final collection of any
purchased account.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 13.712, is amended by adding a subdivision
to read:
new text begin
Data collected, created, received, maintained, or
disseminated under chapter 58B are governed by section 58B.10.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
This chapter may be cited as the "Student Loan Borrower Bill of Rights."
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
For purposes of this chapter, the following terms have the meanings
given them.
new text end
new text begin
"Borrower" means a resident of this state who has received or agreed
to pay a student loan or a person who shares responsibility with a resident for repaying a
student loan.
new text end
new text begin
"Commissioner" means the commissioner of commerce.
new text end
new text begin
"Financial institution" means any of the following
organized under the laws of this state, any other state, or the United States: a bank, bank
and trust, trust company with banking powers, savings bank, savings association, or credit
union.
new text end
new text begin
"Nationwide Multistate
Licensing System and Registry" has the meaning given in section 58A.02, subdivision 8.
new text end
new text begin
"Person in control" means any member of senior
management, including owners or officers, and other persons who directly or indirectly
possess the power to direct or cause the direction of the management policies of an applicant
or student loan servicer under this chapter, regardless of whether the person has any
ownership interest in the applicant or student loan servicer. Control is presumed to exist if
a person directly or indirectly owns, controls, or holds with power to vote ten percent or
more of the voting stock of an applicant or student loan servicer or of a person who owns,
controls, or holds with power to vote ten percent or more of the voting stock of an applicant
or student loan servicer.
new text end
new text begin
"Servicing" means:
new text end
new text begin
(1) receiving any scheduled periodic payments from a borrower or notification of
payments, and applying payments to the borrower's account pursuant to the terms of the
student loan or of the contract governing servicing;
new text end
new text begin
(2) during a period when no payment is required on a student loan, maintaining account
records for the loan and communicating with the borrower regarding the loan, on behalf of
the loan's holder; and
new text end
new text begin
(3) interacting with a borrower, including activities to help prevent default on obligations
arising from student loans, conducted to facilitate the requirements in clauses (1) and (2).
new text end
new text begin
"Student loan" means a government, commercial, or foundation
loan for actual costs paid for tuition and reasonable education and living expenses.
new text end
new text begin
"Student loan servicer" means any person, wherever
located, responsible for the servicing of any student loan to any borrower, including a
nonbank covered person, as defined in Code of Federal Regulations, title 12, section
1090.101, who is responsible for the servicing of any student loan to any borrower.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
No person shall directly or indirectly act as a student
loan servicer without first obtaining a license from the commissioner.
new text end
new text begin
The following persons are exempt from the requirements of
this chapter:
new text end
new text begin
(1) a financial institution;
new text end
new text begin
(2) a person servicing student loans made with the person's own funds, if no more than
three student loans are made in any 12-month period;
new text end
new text begin
(3) an agency, instrumentality, or political subdivision of this state that makes, services,
or guarantees student loans;
new text end
new text begin
(4) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
specific order issued by a court of competent jurisdiction;
new text end
new text begin
(5) the University of Minnesota; or
new text end
new text begin
(6) a person exempted by order of the commissioner.
new text end
new text begin
(a) Any person seeking to act within the state as a
student loan servicer must apply for a license in a form and manner specified by the
commissioner. At a minimum, the application must include:
new text end
new text begin
(1) a financial statement prepared by a certified public accountant or a public accountant;
new text end
new text begin
(2) the history of criminal convictions, excluding traffic violations, for persons in control
of the applicant;
new text end
new text begin
(3) any information requested by the commissioner related to the history of criminal
convictions disclosed under clause (2);
new text end
new text begin
(4) a nonrefundable license fee established by the commissioner; and
new text end
new text begin
(5) a nonrefundable investigation fee established by the commissioner.
new text end
new text begin
(b) The commissioner may conduct a state and national criminal history records check
of the applicant and of each person in control or employee of the applicant.
new text end
new text begin
(a) Upon receipt of a complete application for an initial
license and the payment of fees for a license and investigation, the commissioner must
investigate the financial condition and responsibility, character, financial and business
experience, and general fitness of the applicant. The commissioner may issue a license if
the commissioner finds:
new text end
new text begin
(1) the applicant's financial condition is sound;
new text end
new text begin
(2) the applicant's business will be conducted honestly, fairly, equitably, carefully, and
efficiently within the purposes and intent of this chapter;
new text end
new text begin
(3) each person in control of the applicant is in all respects properly qualified and of
good character;
new text end
new text begin
(4) no person, on behalf of the applicant, has knowingly made any incorrect statement
of a material fact in the application or in any report or statement made pursuant to this
section;
new text end
new text begin
(5) no person, on behalf of the applicant, has knowingly omitted any information required
by the commissioner from an application, report, or statement made pursuant to this section;
new text end
new text begin
(6) the applicant has paid the fees required under this section; and
new text end
new text begin
(7) the application has met other similar requirements as determined by the commissioner.
new text end
new text begin
(b) A license issued under this chapter is not transferable or assignable.
new text end
new text begin
An applicant or student loan servicer must
notify the commissioner in writing of any change in the information provided in the initial
application for a license or the most recent renewal application for a license. The notification
must be received no later than ten business days after the date of an event that results in the
information becoming inaccurate.
new text end
new text begin
Licenses issued under this chapter expire on December 31 of
each year and are renewable on January 1.
new text end
new text begin
(a) A person is exempt from the application
procedures under subdivision 3 if the commissioner determines that the person is servicing
student loans in this state pursuant to a contract awarded by the United States Secretary of
Education under United States Code, title 20, section 1087f. Documentation of eligibility
for this exemption shall be in a form and manner determined by the commissioner.
new text end
new text begin
(b) A person determined to be eligible for the exemption under paragraph (a) shall, upon
payment of the fees under subdivision 3, be issued a license and deemed to meet all of the
requirements of subdivision 4.
new text end
new text begin
(a) A person issued a license under subdivision 7 must provide the
commissioner with written notice no less than seven days after the date the person's contract
under United States Code, title 20, section 1087f, expires, is revoked, or is terminated.
new text end
new text begin
(b) A person issued a license under subdivision 7 has 30 days from the date the
notification under paragraph (a) is provided to complete the requirements of subdivision 3.
If a person does not meet the requirements of subdivision 3 within this time period, the
commissioner shall immediately suspend the person's license under this chapter.
new text end
new text begin
Section 58A.04,
subdivision 2, applies to this chapter.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
A person licensed to act as a student loan servicer in this state is prohibited from servicing
student loans under any other name or at any other place of business than that named in the
license. Any time a student loan servicer changes the location of the servicer's place of
business, the servicer must provide prior written notice to the commissioner. A student loan
servicer may not maintain more than one place of business under the same license. The
commissioner may issue more than one license to the same student loan servicer, provided
that the servicer complies with the application procedures in section 58B.03 for each license.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
Licenses are renewable on January 1 of each year.
new text end
new text begin
(a) A person whose application is properly and timely filed
who has not received notice of denial of renewal is considered approved for renewal. The
person may continue to act as a student loan servicer whether or not the renewed license
has been received on or before January 1 of the renewal year. An application for renewal
of a license is considered timely filed if the application is received by the commissioner, or
mailed with proper postage and postmarked, no later than December 15 of the year
immediately preceding the renewal year. An application for renewal is considered properly
filed if the application is made upon forms duly executed, accompanied by fees prescribed
by this chapter, and containing any information that the commissioner requires.
new text end
new text begin
(b) A person who fails to make a timely application for renewal of a license and who
has not received the renewal license as of January 1 of the renewal year is unlicensed until
the renewal license has been issued by the commissioner and is received by the person.
new text end
new text begin
An application for renewal of an existing
license must contain the information specified in section 58B.03, subdivision 3, except that
only the requested information having changed from the most recent prior application need
be submitted.
new text end
new text begin
A student loan servicer ceasing an activity or activities regulated
by this chapter and desiring to no longer be licensed shall inform the commissioner in writing
and, at the same time, surrender the license and all other symbols or indicia of licensure.
The licensee shall include a plan for the withdrawal from student loan servicing, including
a timetable for the disposition of the student loans being serviced.
new text end
new text begin
The following fees must be paid to the commissioner for a
renewal license:
new text end
new text begin
(1) a nonrefundable renewal license fee established by the commissioner; and
new text end
new text begin
(2) a nonrefundable renewal investigation fee established by the commissioner.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
Upon receiving a written communication from
a borrower, a student loan servicer must:
new text end
new text begin
(1) acknowledge receipt of the communication in less than ten days from the date the
communication is received; and
new text end
new text begin
(2) provide information relating to the communication and, if applicable, the action the
student loan servicer will take to either (i) correct the borrower's issue or (ii) explain why
the issue cannot be corrected. The information must be provided less than 30 days after the
date the written communication was received by the student loan servicer.
new text end
new text begin
(a) A student loan servicer must ask a borrower in what manner
the borrower would like any overpayment to be applied to a student loan. A borrower's
instruction regarding the application of overpayments is effective for the term of the loan
or until the borrower provides a different instruction.
new text end
new text begin
(b) For purposes of this subdivision, "overpayment" means a payment on a student loan
that exceeds the monthly amount due.
new text end
new text begin
(a) A student loan servicer must apply a partial payment in
a manner intended to minimize late fees and the negative impact on the borrower's credit
history. If a borrower has multiple student loans with the same student loan servicer, upon
receipt of a partial payment the servicer must apply the payments to satisfy as many
individual loan payments as possible.
new text end
new text begin
(b) For purposes of this subdivision, "partial payment" means a payment on a student
loan that is less than the monthly amount due.
new text end
new text begin
(a) If a borrower's student loan servicer changes
pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer
must:
new text end
new text begin
(1) require the new student loan servicer to honor all benefits that were made available,
or which may have become available, to a borrower from the original student loan servicer;
and
new text end
new text begin
(2) transfer to the new student loan servicer all information regarding the borrower, the
account of the borrower, and the borrower's student loan, including but not limited to the
repayment status of the student loan and the benefits described in clause (1).
new text end
new text begin
(b) The student loan servicer must complete the transfer under paragraph (a), clause (2),
less than 45 days from the date of the sale, assignment, or transfer of the servicing.
new text end
new text begin
(c) A sale, assignment, or transfer of the servicing must be completed no less than seven
days from the date the next payment is due on the student loan.
new text end
new text begin
(d) A new student loan servicer must adopt policies and procedures to verify that the
original student loan servicer has met the requirements of paragraph (a).
new text end
new text begin
A student loan servicer must evaluate a borrower
for eligibility for an income-driven repayment program before placing a borrower in
forbearance or default.
new text end
new text begin
A student loan servicer must maintain adequate records of each student
loan for not less than two years following the final payment on the student loan or the sale,
assignment, or transfer of the servicing.
new text end
new text begin
This section is effective August 1, 2021, and applies to student
loan contracts executed on or after that date.
new text end
new text begin
A student loan servicer must not directly or
indirectly attempt to mislead a borrower.
new text end
new text begin
A student loan servicer must not engage in any unfair or
deceptive practice or misrepresent or omit any material information in connection with the
servicing of a student loan, including but not limited to misrepresenting the amount, nature,
or terms of any fee or payment due or claimed to be due on a student loan, the terms and
conditions of the loan agreement, or the borrower's obligations under the loan.
new text end
new text begin
A student loan servicer must not knowingly or
negligently misapply student loan payments.
new text end
new text begin
A student loan servicer must not knowingly or
negligently provide inaccurate information to any consumer reporting agency.
new text end
new text begin
A student loan servicer must not fail to report
both the favorable and unfavorable payment history of the borrower to a consumer reporting
agency at least annually, if the student loan servicer regularly reports payment history
information.
new text end
new text begin
A student loan
servicer must not refuse to communicate with a representative of the borrower who provides
a written authorization signed by the borrower. The student loan servicer may adopt
procedures reasonably related to verifying that the representative is in fact authorized to act
on behalf of the borrower.
new text end
new text begin
A student loan servicer must not knowingly
or negligently make any false statement or omission of material fact in connection with any
application, information, or reports filed with the commissioner or any other federal, state,
or local government agency.
new text end
new text begin
A student loan servicer must not violate
any other federal, state, or local laws, including those related to fraudulent, coercive, or
dishonest practices.
new text end
new text begin
A student loan
servicer must not misrepresent the availability of student loan forgiveness for which the
servicer has reason to know the borrower is eligible. This includes but is not limited to
student loan forgiveness programs specific to military borrowers, borrowers working in
public service, or borrowers with disabilities.
new text end
new text begin
A student loan servicer must comply with
the duties and obligations under section 58B.06.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
The commissioner has the same powers with respect to examinations of student loan
servicers under this chapter that the commissioner has under section 46.04.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
(a) The commissioner may by order take any
or all of the following actions:
new text end
new text begin
(1) bar a person from engaging in student loan servicing;
new text end
new text begin
(2) deny, suspend, or revoke a student loan servicer license;
new text end
new text begin
(3) censure a student loan servicer;
new text end
new text begin
(4) impose a civil penalty, as provided in section 45.027, subdivision 6;
new text end
new text begin
(5) order restitution to the borrower, if applicable; or
new text end
new text begin
(6) revoke an exemption.
new text end
new text begin
(b) In order to take the action in paragraph (a), the commissioner must find:
new text end
new text begin
(1) the order is in the public interest; and
new text end
new text begin
(2) the student loan servicer, applicant, person in control, employee, or agent has:
new text end
new text begin
(i) violated any provision of this chapter or a rule or order adopted or issued under this
chapter;
new text end
new text begin
(ii) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, or
dishonest act or practice, including but not limited to negligently making a false statement
or knowingly omitting a material fact, whether or not the act or practice involves student
loan servicing;
new text end
new text begin
(iii) engaged in an act or practice that demonstrates untrustworthiness, financial
irresponsibility, or incompetence, whether or not the act or practice involves student loan
servicing;
new text end
new text begin
(iv) pled guilty or nolo contendere to or been convicted of a felony, gross misdemeanor,
or misdemeanor;
new text end
new text begin
(v) paid a civil penalty or been the subject of a disciplinary action by the commissioner,
order of suspension or revocation, cease and desist order, injunction order, or order barring
involvement in an industry or profession issued by the commissioner or any other federal,
state, or local government agency;
new text end
new text begin
(vi) been found by a court of competent jurisdiction to have engaged in conduct
evidencing gross negligence, fraud, misrepresentation, or deceit;
new text end
new text begin
(vii) refused to cooperate with an investigation or examination by the commissioner;
new text end
new text begin
(viii) failed to pay any fee or assessment imposed by the commissioner; or
new text end
new text begin
(ix) failed to comply with state and federal tax obligations.
new text end
new text begin
To begin a proceeding under this section, the
commissioner shall issue an order requiring the subject of the proceeding to show cause
why action should not be taken against the person according to this section. The order must
be calculated to give reasonable notice of the time and place for the hearing and must state
the reasons for entry of the order. The commissioner may by order summarily suspend a
license or exemption or summarily bar a person from engaging in student loan servicing
pending a final determination of an order to show cause. If a license or exemption is
summarily suspended or if the person is summarily barred from any involvement in the
servicing of student loans pending final determination of an order to show cause, a hearing
on the merits must be held within 30 days of the issuance of the order of summary suspension
or bar. All hearings must be conducted under chapter 14. After the hearing, the commissioner
shall enter an order disposing of the matter as the facts require. If the subject of the order
fails to appear at a hearing after having been duly notified, the person is considered in default
and the proceeding may be determined against the subject of the order upon consideration
of the order to show cause, the allegations of which may be considered to be true.
new text end
new text begin
If a license or certificate of exemption lapses;
is surrendered, withdrawn, or terminated; or otherwise becomes ineffective, the commissioner
may (1) institute a proceeding under this subdivision within two years after the license or
certificate of exemption was last effective and enter a revocation or suspension order as of
the last date on which the license or certificate of exemption was in effect, and (2) impose
a civil penalty as provided for in this section or section 45.027, subdivision 6.
new text end
new text begin
This section is effective August 1, 2021.
new text end
new text begin
Data collected, created, received, maintained, or
disseminated by the Department of Commerce under this chapter are governed by section
46.07.
new text end
new text begin
To the extent data collected, created, received, maintained, or
disseminated under this chapter are not public data as defined by section 13.02, subdivision
8a, the data may, when necessary to accomplish the purpose of this chapter, be shared
between:
new text end
new text begin
(1) the United States Department of Education;
new text end
new text begin
(2) the Office of Higher Education;
new text end
new text begin
(3) the Department of Commerce;
new text end
new text begin
(4) the Office of the Attorney General; and
new text end
new text begin
(5) any other local, state, and federal law enforcement agencies.
new text end
new text begin
This section is effective August 1, 2021.
new text end
Minnesota Statutes 2020, section 65B.15, subdivision 1, is amended to read:
No cancellation or reduction in the limits of liability
of coverage during the policy period of any policy shall be effective unless notice thereof
is given and unless based on one or more reasons stated in the policy which shall be limited
to the following:
1. nonpayment of premium; or
2. the policy was obtained through a material misrepresentation; or
3. any insured made a false or fraudulent claim or knowingly aided or abetted another
in the presentation of such a claim; or
4. the named insured failed to disclose fully motor vehicle accidents and moving traffic
violations of the named insured for the preceding 36 months if called for in the written
application; or
5. the named insured failed to disclose in the written application any requested information
necessary for the acceptance or proper rating of the risk; or
6. the named insured knowingly failed to give any required written notice of loss or
notice of lawsuit commenced against the named insured, or, when requested, refused to
cooperate in the investigation of a claim or defense of a lawsuit; or
7. the named insured or any other operator who either resides in the same household, or
customarily operates an automobile insured under such policy, unless the other operator is
identified as a named insured in another policy as an insured:
(a) has, within the 36 months prior to the notice of cancellation, had that person's driver's
license under suspension or revocation because the person committed a moving traffic
violation or because the person refused to be tested under section 169A.20, subdivision 1;
or
(b) is or becomes subject to epilepsy or heart attacks, and such individual does not
produce a written opinion from a physician testifying to that person's medical ability to
operate a motor vehicle safely, such opinion to be based upon a reasonable medical
probability; or
(c) has an accident record, conviction record (criminal or traffic), physical condition or
mental condition, any one or all of which are such that the person's operation of an automobile
might endanger the public safety; or
(d) has been convicted, or forfeited bail, during the 24 months immediately preceding
the notice of cancellation for criminal negligence in the use or operation of an automobile,
or assault arising out of the operation of a motor vehicle, or operating a motor vehicle while
in an intoxicated condition or while under the influence of drugs; or leaving the scene of
an accident without stopping to report; or making false statements in an application for a
driver's license, or theft or unlawful taking of a motor vehicle; or
(e) has been convicted of, or forfeited bail for, one or more violations within the 18
months immediately preceding the notice of cancellation, of any law, ordinance, or rule
which justify a revocation of a driver's license; or
8. the insured automobile is:
(a) so mechanically defective that its operation might endanger public safety; or
(b) used in carrying passengers for hire or compensation, provided however that the use
of an automobile for a car poolnew text begin or a private passenger vehicle used by a volunteer driver,
as defined under section 65B.472, subdivision 1, paragraph (h),new text end shall not be considered use
of an automobile for hire or compensation; or
(c) used in the business of transportation of flammables or explosives; or
(d) an authorized emergency vehicle; or
(e) subject to an inspection law and has not been inspected or, if inspected, has failed
to qualify within the period specified under such inspection law; or
(f) substantially changed in type or condition during the policy period, increasing the
risk substantially, such as conversion to a commercial type vehicle, a dragster, sports car
or so as to give clear evidence of a use other than the original use.
Minnesota Statutes 2020, section 65B.43, subdivision 12, is amended to read:
"Commercial vehicle" means:
(a) any motor vehicle used as a common carrier,
(b) any motor vehicle, other than a passenger vehicle defined in section 168.002,
subdivision 24, which has a curb weight in excess of 5,500 pounds apart from cargo capacity,
or
(c) any motor vehicle while used in the for-hire transportation of property.
Commercial vehicle does not include a "commuter van," which for purposes of this
chapter deleted text begin shall meandeleted text end new text begin means (1)new text end a motor vehicle having a capacity of seven to 16 persons
which is used principally to provide prearranged transportation of persons to or from their
place of employment or to or from a transit stop authorized by a local transit authority which
vehicle is to be operated by a person who does not drive the vehicle as a principal occupation
but is driving it only to or from the principal place of employment, to or from a transit stop
authorized by a local transit authority ornew text begin ,new text end for personal use as permitted by the owner of the
vehiclenew text begin , or (2) a private passenger vehicle driven by a volunteer drivernew text end .
Minnesota Statutes 2020, section 65B.472, subdivision 1, is amended to read:
(a) Unless a different meaning is expressly made applicable,
the terms defined in paragraphs (b) through (g) have the meanings given them for the
purposes of this chapter.
(b) A "digital network" means any online-enabled application, software, website, or
system offered or utilized by a transportation network company that enables the
prearrangement of rides with transportation network company drivers.
(c) A "personal vehicle" means a vehicle that is used by a transportation network company
driver in connection with providing a prearranged ride and is:
(1) owned, leased, or otherwise authorized for use by the transportation network company
driver; and
(2) not a taxicab, limousine, deleted text begin ordeleted text end for-hire vehiclenew text begin , or a private passenger vehicle driven
by a volunteer drivernew text end .
(d) A "prearranged ride" means the provision of transportation by a driver to a rider,
beginning when a driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company, continuing while the driver transports a
requesting rider, and ending when the last requesting rider departs from the personal vehicle.
A prearranged ride does not include transportation provided using a taxicab, limousine, or
other for-hire vehicle.
(e) A "transportation network company" means a corporation, partnership, sole
proprietorship, or other entity that is operating in Minnesota that uses a digital network to
connect transportation network company riders to transportation network company drivers
who provide prearranged rides.
(f) A "transportation network company driver" or "driver" means an individual who:
(1) receives connections to potential riders and related services from a transportation
network company in exchange for payment of a fee to the transportation network company;
and
(2) uses a personal vehicle to provide a prearranged ride to riders upon connection
through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.
(g) A "transportation network company rider" or "rider" means an individual or persons
who use a transportation network company's digital network to connect with a transportation
network driver who provides prearranged rides to the rider in the driver's personal vehicle
between points chosen by the rider.
new text begin
(h) A "volunteer driver" means an individual who transports persons or goods on behalf
of a nonprofit entity or governmental unit in a private passenger vehicle and receives no
compensation for services provided other than the reimbursement of actual expenses.
new text end
Minnesota Statutes 2020, section 174.29, subdivision 1, is amended to read:
For the purpose of sections 174.29 and 174.30 "special
transportation service" means motor vehicle transportation provided on a regular basis by
a public or private entity or person that is designed exclusively or primarily to serve
individuals who are elderly or disabled and who are unable to use regular means of
transportation but do not require ambulance service, as defined in section 144E.001,
subdivision 3. Special transportation service includes but is not limited to service provided
by specially equipped buses, vans, taxis, and deleted text begin volunteers drivingdeleted text end new text begin volunteer drivers, as defined
in section 65B.472, subdivision 1, paragraph (h), usingnew text end private automobiles. Special
transportation service also means those nonemergency medical transportation services under
section 256B.0625, subdivision 17, that are subject to the operating standards for special
transportation service under sections 174.29 to 174.30 and Minnesota Rules, chapter 8840.
Minnesota Statutes 2020, section 174.30, subdivision 1, is amended to read:
(a) The operating standards for special transportation
service adopted under this section do not apply to special transportation provided by:
(1) a public transit provider receiving financial assistance under sections 174.24 or
473.371 to 473.449;
(2) a volunteer drivernew text begin , as defined in section 65B.472, subdivision 1, paragraph (h),new text end using
a private automobile;
(3) a school bus as defined in section 169.011, subdivision 71; or
(4) an emergency ambulance regulated under chapter 144.
(b) The operating standards adopted under this section only apply to providers of special
transportation service who receive grants or other financial assistance from either the state
or the federal government, or both, to provide or assist in providing that service; except that
the operating standards adopted under this section do not apply to any nursing home licensed
under section 144A.02, to any board and care facility licensed under section 144.50, or to
any day training and habilitation services, day care, or group home facility licensed under
sections 245A.01 to 245A.19 unless the facility or program provides transportation to
nonresidents on a regular basis and the facility receives reimbursement, other than per diem
payments, for that service under rules promulgated by the commissioner of human services.
(c) Notwithstanding paragraph (b), the operating standards adopted under this section
do not apply to any vendor of services licensed under chapter 245D that provides
transportation services to consumers or residents of other vendors licensed under chapter
245D and transports 15 or fewer persons, including consumers or residents and the driver.
Minnesota Statutes 2020, section 174.30, subdivision 10, is amended to read:
(a) Providers of special transportation service regulated
under this section must initiate background studies in accordance with chapter 245C on the
following individuals:
(1) each person with a direct or indirect ownership interest of five percent or higher in
the transportation service provider;
(2) each controlling individual as defined under section 245A.02;
(3) managerial officials as defined in section 245A.02;
(4) each driver employed by the transportation service provider;
(5) each individual employed by the transportation service provider to assist a passenger
during transport; and
(6) all employees of the transportation service agency who provide administrative support,
including those who:
(i) may have face-to-face contact with or access to passengers, their personal property,
or their private data;
(ii) perform any scheduling or dispatching tasks; or
(iii) perform any billing activities.
(b) The transportation service provider must initiate the background studies required
under paragraph (a) using the online NETStudy system operated by the commissioner of
human services.
(c) The transportation service provider shall not permit any individual to provide any
service or function listed in paragraph (a) until the transportation service provider has
received notification from the commissioner of human services indicating that the individual:
(1) is not disqualified under chapter 245C; or
(2) is disqualified, but has received a set-aside of that disqualification according to
sections 245C.22 and 245C.23 related to that transportation service provider.
(d) When a local or contracted agency is authorizing a ride under section 256B.0625,
subdivision 17, by a volunteer driver,new text begin as defined in section 65B.472, subdivision 1, paragraph
(h),new text end and the agency authorizing the ride has reason to believe the volunteer driver has a
history that would disqualify the individual or that may pose a risk to the health or safety
of passengers, the agency may initiate a background study to be completed according to
chapter 245C using the commissioner of human services' online NETStudy system, or
through contacting the Department of Human Services background study division for
assistance. The agency that initiates the background study under this paragraph shall be
responsible for providing the volunteer driver with the privacy notice required under section
245C.05, subdivision 2c, and payment for the background study required under section
245C.10, subdivision 11, before the background study is completed.
Minnesota Statutes 2020, section 221.031, subdivision 3b, is amended to read:
(a) A person who transports
passengers for hire in intrastate commerce, who is not made subject to the rules adopted in
section 221.0314 by any other provision of this section, must comply with the rules for
hours of service of drivers while transporting employees of an employer who is directly or
indirectly paying the cost of the transportation.
(b) This subdivision does not apply to:
(1) a local transit commission;
(2) a transit authority created by law; or
(3) persons providing transportation:
(i) in a school bus as defined in section 169.011, subdivision 71;
(ii) in a Head Start bus as defined in section 169.011, subdivision 34;
(iii) in a commuter van;
(iv) in an authorized emergency vehicle as defined in section 169.011, subdivision 3;
(v) in special transportation service certified by the commissioner under section 174.30;
(vi) that is special transportation service as defined in section 174.29, subdivision 1,
when provided by a volunteer drivernew text begin , as defined in section 65B.472, subdivision 1, paragraph
(h),new text end operating a private passenger vehicle as defined in section 169.011, subdivision 52;
(vii) in a limousine the service of which is licensed by the commissioner under section
221.84; or
(viii) in a taxicab, if the fare for the transportation is determined by a meter inside the
taxicab that measures the distance traveled and displays the fare accumulated.
Minnesota Statutes 2020, section 256B.0625, subdivision 17, is amended to read:
(a) "Nonemergency medical transportation service"
means motor vehicle transportation provided by a public or private person that serves
Minnesota health care program beneficiaries who do not require emergency ambulance
service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
(b) Medical assistance covers medical transportation costs incurred solely for obtaining
emergency medical care or transportation costs incurred by eligible persons in obtaining
emergency or nonemergency medical care when paid directly to an ambulance company,
nonemergency medical transportation company, or other recognized providers of
transportation services. Medical transportation must be provided by:
(1) nonemergency medical transportation providers who meet the requirements of this
subdivision;
(2) ambulances, as defined in section 144E.001, subdivision 2;
(3) taxicabs that meet the requirements of this subdivision;
(4) public transit, as defined in section 174.22, subdivision 7; or
(5) not-for-hire vehicles, including volunteer driversnew text begin , as defined in section 65B.472,
subdivision 1, paragraph (h)new text end .
(c) Medical assistance covers nonemergency medical transportation provided by
nonemergency medical transportation providers enrolled in the Minnesota health care
programs. All nonemergency medical transportation providers must comply with the
operating standards for special transportation service as defined in sections 174.29 to 174.30
and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the
commissioner and reported on the claim as the individual who provided the service. All
nonemergency medical transportation providers shall bill for nonemergency medical
transportation services in accordance with Minnesota health care programs criteria. Publicly
operated transit systems, volunteers, and not-for-hire vehicles are exempt from the
requirements outlined in this paragraph.
(d) An organization may be terminated, denied, or suspended from enrollment if:
(1) the provider has not initiated background studies on the individuals specified in
section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
(2) the provider has initiated background studies on the individuals specified in section
174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
(i) the commissioner has sent the provider a notice that the individual has been
disqualified under section 245C.14; and
(ii) the individual has not received a disqualification set-aside specific to the special
transportation services provider under sections 245C.22 and 245C.23.
(e) The administrative agency of nonemergency medical transportation must:
(1) adhere to the policies defined by the commissioner in consultation with the
Nonemergency Medical Transportation Advisory Committee;
(2) pay nonemergency medical transportation providers for services provided to
Minnesota health care programs beneficiaries to obtain covered medical services;
(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
trips, and number of trips by mode; and
(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single
administrative structure assessment tool that meets the technical requirements established
by the commissioner, reconciles trip information with claims being submitted by providers,
and ensures prompt payment for nonemergency medical transportation services.
(f) Until the commissioner implements the single administrative structure and delivery
system under subdivision 18e, clients shall obtain their level-of-service certificate from the
commissioner or an entity approved by the commissioner that does not dispatch rides for
clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7).
(g) The commissioner may use an order by the recipient's attending physician, advanced
practice registered nurse, or a medical or mental health professional to certify that the
recipient requires nonemergency medical transportation services. Nonemergency medical
transportation providers shall perform driver-assisted services for eligible individuals, when
appropriate. Driver-assisted service includes passenger pickup at and return to the individual's
residence or place of business, assistance with admittance of the individual to the medical
facility, and assistance in passenger securement or in securing of wheelchairs, child seats,
or stretchers in the vehicle.
Nonemergency medical transportation providers must take clients to the health care
provider using the most direct route, and must not exceed 30 miles for a trip to a primary
care provider or 60 miles for a trip to a specialty care provider, unless the client receives
authorization from the local agency.
Nonemergency medical transportation providers may not bill for separate base rates for
the continuation of a trip beyond the original destination. Nonemergency medical
transportation providers must maintain trip logs, which include pickup and drop-off times,
signed by the medical provider or client, whichever is deemed most appropriate, attesting
to mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
services.
(h) The administrative agency shall use the level of service process established by the
commissioner in consultation with the Nonemergency Medical Transportation Advisory
Committee to determine the client's most appropriate mode of transportation. If public transit
or a certified transportation provider is not available to provide the appropriate service mode
for the client, the client may receive a onetime service upgrade.
(i) The covered modes of transportation are:
(1) client reimbursement, which includes client mileage reimbursement provided to
clients who have their own transportation, or to family or an acquaintance who provides
transportation to the client;
(2) volunteer transport, which includes transportation by volunteers using their own
vehicle;
(3) unassisted transport, which includes transportation provided to a client by a taxicab
or public transit. If a taxicab or public transit is not available, the client can receive
transportation from another nonemergency medical transportation provider;
(4) assisted transport, which includes transport provided to clients who require assistance
by a nonemergency medical transportation provider;
(5) lift-equipped/ramp transport, which includes transport provided to a client who is
dependent on a device and requires a nonemergency medical transportation provider with
a vehicle containing a lift or ramp;
(6) protected transport, which includes transport provided to a client who has received
a prescreening that has deemed other forms of transportation inappropriate and who requires
a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety
locks, a video recorder, and a transparent thermoplastic partition between the passenger and
the vehicle driver; and (ii) who is certified as a protected transport provider; and
(7) stretcher transport, which includes transport for a client in a prone or supine position
and requires a nonemergency medical transportation provider with a vehicle that can transport
a client in a prone or supine position.
(j) The local agency shall be the single administrative agency and shall administer and
reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the
commissioner has developed, made available, and funded the web-based single administrative
structure, assessment tool, and level of need assessment under subdivision 18e. The local
agency's financial obligation is limited to funds provided by the state or federal government.
(k) The commissioner shall:
(1) in consultation with the Nonemergency Medical Transportation Advisory Committee,
verify that the mode and use of nonemergency medical transportation is appropriate;
(2) verify that the client is going to an approved medical appointment; and
(3) investigate all complaints and appeals.
(l) The administrative agency shall pay for the services provided in this subdivision and
seek reimbursement from the commissioner, if appropriate. As vendors of medical care,
local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.
(m) Payments for nonemergency medical transportation must be paid based on the client's
assessed mode under paragraph (h), not the type of vehicle used to provide the service. The
medical assistance reimbursement rates for nonemergency medical transportation services
that are payable by or on behalf of the commissioner for nonemergency medical
transportation services are:
(1) $0.22 per mile for client reimbursement;
(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer
transport;
(3) equivalent to the standard fare for unassisted transport when provided by public
transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
medical transportation provider;
(4) $13 for the base rate and $1.30 per mile for assisted transport;
(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;
(6) $75 for the base rate and $2.40 per mile for protected transport; and
(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for
an additional attendant if deemed medically necessary.
(n) The base rate for nonemergency medical transportation services in areas defined
under RUCA to be super rural is equal to 111.3 percent of the respective base rate in
paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation
services in areas defined under RUCA to be rural or super rural areas is:
(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7); and
(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7).
(o) For purposes of reimbursement rates for nonemergency medical transportation
services under paragraphs (m) and (n), the zip code of the recipient's place of residence
shall determine whether the urban, rural, or super rural reimbursement rate applies.
(p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means
a census-tract based classification system under which a geographical area is determined
to be urban, rural, or super rural.
(q) The commissioner, when determining reimbursement rates for nonemergency medical
transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed
under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2).
Minnesota Statutes 2020, section 325E.21, subdivision 1, is amended to read:
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text begin
(b) "Commissioner" means the commissioner of commerce.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end "Law enforcement agency" or "agency" means a duly authorized municipal,
county, state, or federal law enforcement agency.
deleted text begin (c)deleted text end new text begin (d)new text end "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other entity.
deleted text begin (d)deleted text end new text begin (e)new text end "Scrap metal" means:
(1) wire and cable commonly and customarily used by communication and electric
utilities; and
(2) copper, aluminum, or any other metal purchased primarily for its reuse or recycling
value as raw metal, including metal that is combined with other materials at the time of
purchase, but does not include a scrap vehicle as defined in section 168A.1501, subdivision
1.
deleted text begin (e)deleted text end new text begin (f)new text end "Scrap metal dealer" or "dealer" means a person engaged in the business of buying
or selling scrap metal, or both.
The terms do not include a person engaged exclusively in the business of buying or selling
new or used motor vehicles, paper or wood products, rags or furniture, or secondhand
machinery.
deleted text begin (f)deleted text end new text begin (g)new text end "Seller" means any seller, prospective seller, or agent of the seller.
deleted text begin (g)deleted text end new text begin (h)new text end "Proof of identification" means a driver's license, Minnesota identification card
number, or other identification document issued for identification purposes by any state,
federal, or foreign government if the document includes the person's photograph, full name,
birth date, and signature.
Minnesota Statutes 2020, section 325E.21, subdivision 1b, is amended to read:
new text begin
(a) Any person who purchases or
receives a catalytic converter must comply with this section.
new text end
deleted text begin (a)deleted text end new text begin (b)new text end Every scrap metal dealer, including an agent, employee, or representative of the
dealer, shall create a permanent record written in English, using an electronic record program
at the time of each purchase or acquisition of scrap metal. The record must include:
(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal purchased or acquired;
(2) the date, time, and place of the receipt of the scrap metal purchased or acquired and
a unique transaction identifier;
(3) a photocopy or electronic scan of the seller's proof of identification including the
identification number;
(4) the amount paid and the number of the check or electronic transfer used to purchase
the scrap metal;
(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal, including the vehicle make and model, and any identifying marks
on the vehicle, such as a business name, decals, or markings, if applicable;
(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
and the seller has the right to sell it; deleted text begin and
deleted text end
(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal was received by the dealer, an
accurate description of the scrap metal, and the amount paid for the scrap metaldeleted text begin .deleted text end new text begin ;
new text end
new text begin
(8) in order to purchase a detached catalytic converter, any numbers, bar codes, stickers,
or other unique markings that result from the pilot project created under subdivision 2b;
and
new text end
new text begin
(9) the name of the person who removed the catalytic converter.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The record, as well as the scrap metal purchased or received, shall at all reasonable
times be open to the inspection of any properly identified law enforcement officer.
deleted text begin (c)deleted text end new text begin (d)new text end No record is required for property purchased from merchants, manufacturers,
salvage pools, insurance companies, rental car companies, financial institutions, charities,
dealers licensed under section 168.27, or wholesale dealers, having an established place of
business, or of any goods purchased at open sale from any bankrupt stock, but a receipt as
required under paragraph deleted text begin (a)deleted text end new text begin (b)new text end , clause (7), shall be obtained and kept by the person, which
must be shown upon demand to any properly identified law enforcement officer.
deleted text begin (d)deleted text end new text begin (e)new text end The dealer must provide a copy of the receipt required under paragraph deleted text begin (a)deleted text end new text begin (b)new text end ,
clause (7), to the seller in every transaction.
deleted text begin (e)deleted text end new text begin (f)new text end Law enforcement agencies in the jurisdiction where a dealer is located may conduct
regular and routine inspections to ensure compliance, refer violations to the city or county
attorney for criminal prosecution, and notify the registrar of motor vehicles.
deleted text begin (f)deleted text end new text begin (g)new text end Except as otherwise provided in this section, a scrap metal dealer or the dealer's
agent, employee, or representative may not disclose personal information concerning a
customer without the customer's consent unless the disclosure is required by law or made
in response to a request from a law enforcement agency. A scrap metal dealer must implement
reasonable safeguards to protect the security of the personal information and prevent
unauthorized access to or disclosure of the information. For purposes of this paragraph,
"personal information" is any individually identifiable information gathered in connection
with a record under paragraph (a).
Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision
to read:
new text begin
(a) The catalytic converter
theft prevention pilot project is created to deter the theft of catalytic converters by marking
them with vehicle identification numbers or other unique identifiers.
new text end
new text begin
(b) The commissioner shall establish a procedure to mark the catalytic converters of
vehicles most likely to be targeted for theft with unique identification numbers using labels,
engraving, theft deterrence paint, or other methods that permanently mark the catalytic
converter without damaging its function.
new text end
new text begin
(c) The commissioner shall work with law enforcement agencies, insurance companies,
and scrap metal dealers to identify vehicles that are most frequently targeted for catalytic
converter theft and to establish the most effective methods for marking catalytic converters.
new text end
new text begin
(d) Materials purchased under this program may be distributed to dealers, as defined in
section 168.002, subdivision 6, automobile repair shops and service centers, law enforcement
agencies, and community organizations to arrange for the marking of the catalytic converters
of vehicles most likely to be targeted for theft at no cost to the vehicle owners.
new text end
new text begin
(e) The commissioner may prioritize distribution of materials to areas experiencing the
highest rates of catalytic converter theft.
new text end
new text begin
(f) The commissioner must make educational information resulting from the pilot program
available to law enforcement agencies and scrap metal dealers and is encouraged to publicize
the program to the general public.
new text end
new text begin
(g) The commissioner shall include a report on the pilot project in the report required
under section 65B.84, subdivision 2. The report must describe the progress, results, and any
findings of the pilot project including the total number of catalytic converters marked under
the program, and, to the extent known, whether any catalytic converters marked under the
pilot project were stolen and the outcome of any criminal investigation into the thefts.
new text end
Minnesota Statutes 2020, section 325F.171, is amended by adding a subdivision
to read:
new text begin
This section may be enforced as provided under sections 45.027,
subdivisions 1 to 6, 325F.10 to 325F.12, and 325F.14 to 325F.16.
new text end
Minnesota Statutes 2020, section 325F.172, is amended by adding a subdivision
to read:
new text begin
Sections 325F.173 to 325F.175 may be enforced as provided
under sections 45.027, subdivisions 1 to 6, 325F.10 to 325F.12, and 325F.14 to 325F.16.
new text end
new text begin
Sections 325F.177 and 325F.178 may be enforced as provided under sections 45.027,
subdivisions 1 to 6, 325F.10 to 325F.12, and 325F.14 to 325F.16.
new text end
Minnesota Statutes 2020, section 514.972, subdivision 4, is amended to read:
Upon default, the owner shall mail notice of default as provided
under section 514.974. The owner may deny the occupant access to the personal property
contained in the self-service storage facility after default, service of the notice of default,
expiration of the date stated for denial of access, and application of any security deposit to
unpaid rent. deleted text begin The notice of default must state the date that the occupant will be denied access
to the occupant's personal property in the self-service storage facility and that access will
be denied until the owner's claim has been satisfied. The notice of default must state that
any dispute regarding denial of access can be raised by the occupant beginning legal action
in court. Notice of default must further state the rights of the occupant contained in
subdivision 5.
deleted text end
Minnesota Statutes 2020, section 514.972, subdivision 5, is amended to read:
deleted text begin
The occupant may remove from the self-service storage
facility personal papers, health aids, personal clothing of the occupant and the occupant's
dependents, and personal property that is necessary for the livelihood of the occupant, that
has a market value of less than $50 per item, if demand is made to any of the persons listed
in section 514.976, subdivision 1. The occupant shall present a list of the items, and may
remove them during the facility's ordinary business hours prior to the sale authorized by
section 514.973. If the owner unjustifiably denies the occupant access for the purpose of
removing the items specified in this subdivision, the occupant is entitled to an order allowing
access to the storage unit for removal of the specified items. The self-service storage facility
is liable to the occupant for the costs, disbursements and attorney fees expended by the
occupant to obtain this order.
deleted text end
new text begin
(a) Any occupant may remove from the self-storage facility
personal papers and health aids upon demand made to any of the persons listed in section
514.976, subdivision 1.
new text end
new text begin
(b) An occupant who provides documentation from a government or nonprofit agency
or legal aid office that the occupant is a recipient of relief based on need, is eligible for legal
aid services, or is a survivor of domestic violence or sexual assault may remove, in addition
to the items provided in paragraph (a), personal clothing of the occupant and the occupant's
dependents and tools of the trade that are necessary for the livelihood of the occupant that
has a market value not to exceed $125 per item.
new text end
new text begin
(c) The occupant shall present a list of the items and may remove the items during the
facility's ordinary business hours prior to the sale authorized by section 514.973. If the
owner unjustifiably denies the occupant access for the purpose of removing the items
specified in this subdivision, the occupant is entitled to request relief from the court for an
order allowing access to the storage space for removal of the specified items. The self-service
storage facility is liable to the occupant for the costs, disbursements, and attorney fees
expended by the occupant to obtain this order.
new text end
new text begin
(d) For the purposes of this subdivision, "relief based on need" includes but is not limited
to receipt of a benefit from the Minnesota family investment program and diversionary
work program, medical assistance, general assistance, emergency general assistance,
Minnesota supplemental aid, Minnesota supplemental aid housing assistance, MinnesotaCare,
Supplemental Security Income, energy assistance, emergency assistance, Supplemental
Nutrition Assistance Program benefits, earned income tax credit, or Minnesota working
family tax credit. Relief based on need can also be proven by providing documentation from
a legal aid organization that the individual is receiving legal aid assistance, or by providing
documentation from a government agency, nonprofit, or housing assistance program that
the individual is receiving assistance due to domestic violence or sexual assault.
new text end
Minnesota Statutes 2020, section 514.973, subdivision 3, is amended to read:
The notice must include:
(1) a statement of the amount owed for rent and other charges and demand for payment
within a specified time not less than 14 days after delivery of the notice;
(2) pursuant to section 514.972, subdivision 4, a notice of denial of access to the storage
space, if this denial is permitted under the terms of the rental agreement;
new text begin
(3) the date that the occupant will be denied access to the occupant's personal property
in the self-service storage facility;
new text end
new text begin
(4) a statement that access will be denied until the owner's claim has been satisfied;
new text end
new text begin
(5) a statement that any dispute regarding denial of access can be raised by an occupant
beginning legal action in court;
new text end
deleted text begin (3)deleted text end new text begin (6)new text end the name, street address, and telephone number of the owner, or of the owner's
designated agent, whom the occupant may contact to respond to the notice;
deleted text begin (4)deleted text end new text begin (7)new text end a conspicuous statement that unless the claim is paid within the time stated in
the notice, the personal property will be advertised for sale. The notice must specify the
time and place of the sale; and
deleted text begin (5)deleted text end new text begin (8)new text end a conspicuous statement of the items that the occupant may remove without
charge pursuant to section 514.972, subdivision 5, if the occupant is denied general access
to the storage space.
Minnesota Statutes 2020, section 514.973, subdivision 4, is amended to read:
(a) A sale of personal property may take place no sooner
than 45 days after default or, if the personal property is a motor vehicle or watercraft, no
sooner than 60 days after default.
(b) After the expiration of the time given in the notice, the sale must be published once
a week for two weeks consecutively in a newspaper of general circulation where the sale
is to be held. The sale may take place no sooner than 15 days after the first publication. If
the lien is satisfied before the second publication occurs, the second publication is waived.
If there is no qualified newspaper under chapter 331A where the sale is to be held, the
advertisement may be posted on an independent, publicly accessible website that advertises
self-storage lien sales or public notices. The advertisement must include a new text begin general new text end description
of the goods, the name of the person on whose account the goods are being held, and the
time and place of the sale.
(c) A sale of the personal property must conform to the terms of the notification.
(d) A sale of the personal property must be public and must be either:
(1) held via an online auction; or
(2) held at the storage facility, or at the nearest suitable place at which the personal
property is held or stored.
Owners shall require all bidders, including online bidders, to register and agree to the rules
of the sale.
(e) The sale must be conducted in a commercially reasonable manner. A sale is
commercially reasonable if the property is sold in conformity with the practices among
dealers in the property sold or sellers of similar distressed property sales.
Minnesota Statutes 2020, section 514.974, is amended to read:
deleted text begin Notification of the proposed sale of personal property must include a notice of denial
of access to the personal property until the owner's claim has been satisfied.deleted text end Any notice the
owner is required to mail to the occupant under sections 514.970 to 514.979 shall be sent
to:
(1) the e-mail address, if consented to by the occupant, as provided in section 514.973,
subdivision 2;
(2) the mailing address and any alternate mailing address provided by the occupant in
the rental agreement; or
(3) the last known mailing address of the occupant, if the last known mailing address
differs from the mailing address listed by the occupant in the rental agreement and the owner
has reason to believe that the last known mailing address is more current.
Minnesota Statutes 2020, section 514.977, is amended to read:
If an occupant defaults in the
payment of rentnew text begin for the storage spacenew text end or otherwise breaches the rental agreement, the owner
may commence an deleted text begin evictiondeleted text end action deleted text begin under chapter 504Bdeleted text end new text begin to terminate the rental agreement,
recover possession of the storage space, remove the occupant, and dispose of the stored
personal propertynew text end .new text begin The action shall be conducted in accordance with the Minnesota Rules
of Civil Procedure, except as provided in this section.
new text end
new text begin
The summons must be served at least seven days before
the date of the court appearance as provided in subdivision 3.
new text end
new text begin
Except as provided in subdivision 4, in an action filed under this
section the appearance shall be not less than seven or more than 14 days from the day of
issuing the summons.
new text end
new text begin
If the owner files a motion and affidavit stating specific
facts and instances in support of an allegation that the occupant is causing a nuisance or
engaging in illegal or other behavior that seriously endangers the safety of others, others'
property, or the storage facility's property, the appearance shall be not less than three days
nor more than seven days from the date the summons is issued. The summons in an expedited
hearing shall be served upon the occupant within 24 hours of issuance unless the court
orders otherwise for good cause shown.
new text end
new text begin
At the court appearance specified in the summons,
the defendant may answer the complaint, and the court shall hear and decide the action,
unless it grants a continuance of the trial, which may be for no longer than six days, unless
all parties consent to longer continuance.
new text end
new text begin
The occupant is prohibited from bringing counterclaims in the
action that are unrelated to the possession of the storage space. Nothing in this section
prevents the occupant from bringing the claim in a separate action.
new text end
new text begin
Judgment in matters adjudicated under this section shall be
in accordance with section 504B.345. Execution of a writ issued under this section shall be
in accordance with section 504B.365.
new text end
Minnesota Statutes 2020, section 115C.094, is amended to read:
(a) As used in this section, an abandoned underground petroleum storage tank means
an underground petroleum storage tank that was:
(1) taken out of service prior to December 22, 1988; deleted text begin or
deleted text end
(2) taken out of service on or after December 22, 1988, if the current property owner
did not know of the existence of the underground petroleum storage tank and could not have
reasonably been expected to have known of the tank's existence at the time the owner first
acquired right, title, or interest in the tankdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(3) taken out of service and is located on property that is being held by the state in trust
for local taxing districts under section 281.25.
new text end
(b) The board may contract for:
(1) a statewide assessment in order to determine the quantity, location, cost, and feasibility
of removing abandoned underground petroleum storage tanks;
(2) the removal of an abandoned underground petroleum storage tank; and
(3) the removal and disposal of petroleum-contaminated soil if the removal is required
by the commissioner at the time of tank removal.
(c) Before the board may contract for removal of an abandoned petroleum storage tank,
the tank owner must provide the board with written access to the property and release the
board from any potential liability for the work performed.
new text begin
(d) If at the time of the forfeiture of property identified under paragraph (a), clause (3),
the property owner or the owner's heirs, devisees, or representatives, or any person to whom
the right to pay taxes was granted by statute, mortgage, or other agreement, repurchases the
property under section 282.241, the board's contracted costs for the underground storage
tank removal project must be included as a special assessment included in the repurchase
price, as provided under section 282.251, and must be returned to the board upon the sale
of the property.
new text end
deleted text begin (d)deleted text end new text begin (e)new text end Money in the fund is appropriated to the board for the purposes of this section.
Minnesota Statutes 2020, section 308A.201, subdivision 12, is amended to read:
(a) An electric cooperative has the power and
authority to:
(1) make loans to its members;
(2) prerefund debt;
(3) obtain funds through negotiated financing or public sale;
(4) borrow money and issue its bonds, debentures, notes, or other evidence of
indebtedness;
(5) mortgage, pledge, or otherwise hypothecate its assets as may be necessary;
(6) invest its resources;
(7) deposit money in state and national banks and trust companies authorized to receive
deposits; and
(8) exercise all other powers and authorities granted to cooperatives.
(b) A cooperative organized to provide rural electric power may enter agreements and
contracts with other electric power cooperatives or with a cooperative constituted of electric
power cooperatives to share losses and risk of losses to their transmission and distribution
lines, transformers, substations, and related appurtenances from storm, sleet, hail, tornado,
cyclone, hurricane, or windstorm. An agreement or contract or a cooperative formed to
share losses under this paragraph is not subject to the laws of this state relating to insurance
and insurance companies.
new text begin
(c) An electric cooperative, an affiliate of the cooperative formed to provide broadband,
or another entity pursuant to an agreement with the cooperative or the cooperative's affiliate,
may use the cooperative, affiliate, or entity's existing or subsequently acquired electric
transmission or distribution easements for broadband infrastructure and to provide broadband
service, which may include an agreement to lease fiber capacity. To exercise rights granted
under this paragraph, the cooperative must provide to the property owner on which the
easement is located two written notices, at least two months apart, that the cooperative
intends to use the easement for broadband purposes. The use of the easement for broadband
services vests and runs with the land beginning six months after the first notice is provided
under paragraph (d) unless a court action challenging the use of the easement for broadband
purposes has been filed before that time by the property owner, as provided under paragraph
(e). The cooperative must also file evidence of the notices for recording with the county
recorder.
new text end
new text begin
(d) The cooperative's notices under paragraph (c) must be sent by first class mail to the
last known address of the owner of the property on which the easement is located or by
printed insertion in the property owner's utility bill. The notice must include the following:
new text end
new text begin
(1) the name and mailing address of the cooperative;
new text end
new text begin
(2) a narrative describing the nature and purpose of the intended easement use;
new text end
new text begin
(3) a description of any trenching or other underground work expected to result from
the intended use, including the anticipated time frame for the work;
new text end
new text begin
(4) a phone number of a cooperative employee to contact regarding the easement; and
new text end
new text begin
(5) the following statement, in bold red lettering: "It is important to make any challenge
by the deadline to preserve any legal rights you may have."
new text end
new text begin
(e) Within six months after receiving notice under paragraph (d), a property owner may
commence an action seeking to recover damages for an electric cooperative's use of an
electric transmission or distribution easement for broadband service purposes. If the claim
for damages is under $15,000, the claim may be brought in conciliation court.
Notwithstanding any other law to the contrary, the procedures and substantive matters set
forth in this subdivision govern an action under this paragraph and are the exclusive means
to bring a claim for compensation with respect to a notice of intent to use a cooperative
transmission or distribution easement for broadband purposes. To commence an action
under this paragraph, the property owner must serve a complaint upon the electric cooperative
as in a civil action and file the complaint with the district court for the county in which the
easement is located. The complaint must state whether the property owner (1) is challenging
the electric cooperative's right to use the easement for broadband services or infrastructure
as authorized under paragraph (c), (2) is seeking damages as provided under paragraph (f),
or (3) both.
new text end
new text begin
(f) If the property owner is seeking damages, the electric cooperative may, at any time
after answering the complaint: (1) deposit with the court administrator an amount equal to
the cooperative's estimate of damages, which must be no less than $1; and (2) after making
the deposit, use the electric transmission or service line easements for broadband purposes,
conditioned on an obligation to pay the amount of damages determined by the court. If the
property owner is challenging the electric cooperative's right to use the easement for
broadband services or infrastructure as authorized under paragraph (c), after the electric
cooperative answers the complaint the district court must promptly hold a hearing on the
property owner's challenge. If the district court denies the property owner's challenge, the
electric cooperative may proceed to make a deposit and make use of the easement for
broadband service purposes, as provided under clause (2).
new text end
new text begin
(g) In an action involving a property owner's claim for damages, the landowner has the
burden to prove the existence and amount of any net reduction in the fair market value of
the property, considering the existence, installation, construction, maintenance, modification,
operation, repair, replacement, or removal of broadband infrastructure in the easement, as
well as any benefit to the property from access to broadband service. Consequential or
special damages must not be awarded. Evidence of revenue, profits, fees, income, or similar
benefits to the electric cooperative, the cooperative's affiliate, or a third party is inadmissible.
Any fees or costs incurred as a result of an action under this subdivision must be paid by
the party that incurred the fees or costs, except that the cooperative is responsible for the
landowner attorney fees if the final judgment or award of damages is more than 140 percent
of the cooperative's damage deposit.
new text end
new text begin
(h) Nothing in this section limits in any way an electric cooperative's existing easement
rights, including but not limited to rights an electric cooperative has or may acquire to
transmit communications for electric system operations or otherwise.
new text end
new text begin
(i) The placement of broadband infrastructure for use to provide broadband service under
paragraphs (c) to (h) in any portion of an electric transmission or distribution easement
located in the public right-of-way is subject to local government permitting and right-of-way
management authority under section 237.163, and the placement must be coordinated with
the relevant local government unit to minimize potential future relocations. The cooperative
must notify a local government unit prior to placing infrastructure for broadband service in
an easement that is in or adjacent to the local government unit's public right-of-way.
new text end
new text begin
(j) For purposes of this subdivision:
new text end
new text begin
(1) "broadband infrastructure" has the meaning given in section 116J.394; and
new text end
new text begin
(2) "broadband service" means broadband infrastructure and any services provided over
the infrastructure that offer advanced telecommunications capability and Internet access.
new text end
new text begin
(a) The Minnesota Council on Economic Education, with funds made available through
grants from the commissioner of education in fiscal years 2022 and 2023, must:
new text end
new text begin
(1) provide professional development to Minnesota's kindergarten through grade 12
teachers implementing state graduation standards in learning areas related to economic
education;
new text end
new text begin
(2) support the direct-to-student ancillary economic and personal finance programs that
Minnesota teachers supervise and coach; and
new text end
new text begin
(3) provide support to geographically diverse affiliated higher education-based centers
for economic education, including those based at Minnesota State University Mankato,
Minnesota State University Moorhead, St. Cloud State University, St. Catherine University,
and the University of St. Thomas, as the centers' work relates to activities in clauses (1) and
(2).
new text end
new text begin
(b) By February 15 of each year following the receipt of a grant, the Minnesota Council
on Economic Education must report to the commissioner of education on the number and
type of in-person and online teacher professional development opportunities provided by
the Minnesota Council on Economic Education or affiliated state centers. The report must
include a description of the content, length, and location of the programs; the number of
preservice and licensed teachers receiving professional development through each of these
opportunities; and a summary of evaluations of professional opportunities for teachers.
new text end
new text begin
(c) On August 15, 2021, the Department of Education must pay the full amount of the
grant for fiscal year 2022 to the Minnesota Council on Economic Education. On August
15, 2022, the Department of Education must pay the full amount of the grant for fiscal year
2023 to the Minnesota Council on Economic Education. The Minnesota Council on Economic
Education must submit its fiscal reporting in the form and manner specified by the
commissioner. The commissioner may request additional information as necessary.
new text end
new text begin
This section is effective the day following final enactment.
new text end
new text begin
An employee of a collection agency licensed under Minnesota Statutes, chapter 332,
may work from a location other than the licensee's business location if the licensee and
employee comply with all the requirements of Minnesota Statutes, section 332.33, that
would apply if the employee were working at the business location. The fee for a collector
registration or renewal under Minnesota Statutes, section 332.33, subdivision 3, entitles the
individual collector to work at a licensee's business location or a location otherwise acceptable
under this section. An additional branch license is not required for a location used under
this section. This section expires May 31, 2022.
new text end
new text begin
Minnesota Statutes 2020, section 115C.13,
new text end
new text begin
is repealed.
new text end
Minnesota Statutes 2020, section 16B.86, is amended to read:
new text begin
(a) For purposes of this section and section 16B.87, the
following terms have the meanings given.
new text end
new text begin
(b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (d).
new text end
new text begin
(c) "Energy conservation improvement" has the meaning given in section 216B.241,
subdivision 1, paragraph (e).
new text end
new text begin
(d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end
new text begin
(e) "Project" means the energy conservation improvements financed by a loan made
under this section.
new text end
new text begin
(f) "State building" means an existing building owned by the state of Minnesota.
new text end
The deleted text begin productivitydeleted text end new text begin state building energy conservation
improvement revolvingnew text end loan account is new text begin established as new text end a deleted text begin specialdeleted text end new text begin separatenew text end account in the state
treasury. new text begin The commissioner shall manage the account and shall credit to the account
investment income, repayments of principal and interest, and any other earnings arising
from assets of the account. new text end Money in the account is appropriated to the commissioner of
administration to make loans to deleted text begin finance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agencydeleted text end new text begin state agencies to implement
energy conservation and energy efficiency improvements in state buildings under section
16B.87new text end .
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2020, section 16B.87, is amended to read:
The deleted text begin Productivitydeleted text end new text begin State Building Energy Conservation
Improvementnew text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text begin revenuedeleted text end new text begin commercenew text end . The commissioner of administration serves as chair of
the committee. The members serve without compensation or reimbursement for expenses.
new text begin (a) new text end An agency shall apply for a loan on a form
deleted text begin provideddeleted text end new text begin developednew text end by the commissioner of administrationdeleted text begin .deleted text end new text begin that requires an applicant to
submit the following information:
new text end
new text begin
(1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
new text end
new text begin
(2) the total estimated project cost and the loan amount sought;
new text end
new text begin
(3) a detailed project budget;
new text end
new text begin
(4) projections of the proposed project's expected energy and monetary savings;
new text end
new text begin
(5) information demonstrating the agency's ability to repay the loan;
new text end
new text begin
(6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant seeks additional funding for the project;
and
new text end
new text begin
(7) any additional information requested by the commissioner.
new text end
new text begin (b)new text end The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. deleted text begin The committee shall determine the amount, interest, and
other terms of the loan. The time for repayment of a loan may not exceed five years.deleted text end new text begin A loan
made under this section must:
new text end
new text begin
(1) be at or below the market rate of interest, including a zero interest loan; and
new text end
new text begin
(2) have a term no longer than seven years.
new text end
new text begin
(c) In making awards, the committee shall give preference to:
new text end
new text begin
(1) applicants that have sought funding for the project through energy conservation
projects offered by the utility serving the state building that is the subject of the application;
and
new text end
new text begin
(2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.
new text end
An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administrationnew text begin ,new text end who shall deposit it in the deleted text begin productivitydeleted text end new text begin state building energy
conservation improvement revolvingnew text end loan deleted text begin funddeleted text end new text begin account. Payments of loan principal and
interest must begin no later than one year after the project is completednew text end .
new text begin
The closed landfill solar redevelopment and reuse account
is established as an account in the remediation fund.
new text end
new text begin
The account consists of money from:
new text end
new text begin
(1) revenue from lease payments received from a utility or other entity that is leasing a
portion of a closed landfill site managed by the Pollution Control Agency to install a solar
energy generating system;
new text end
new text begin
(2) appropriations and transfers to the account as provided by law; and
new text end
new text begin
(3) interest earned on the account.
new text end
new text begin
Money in the account, including any interest accrued, must be
used to facilitate reuse and redevelopment for solar projects located at closed landfill sites
managed by the Pollution Control Agency under sections 115B.39 to 115B.445.
new text end
Minnesota Statutes 2020, section 116.155, is amended by adding a subdivision to
read:
new text begin
The closed landfill
solar redevelopment and reuse account is established and managed as provided under section
115B.431.
new text end
Minnesota Statutes 2020, section 116C.7792, is amended to read:
(a) The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.
(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.
(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.
(d) The following amounts are allocated to the solar energy production incentive program:
(1) $10,000,000 in 2021; deleted text begin and
deleted text end
(2) $10,000,000 in 2022new text begin ;
new text end
new text begin
(3) $5,000,000 in 2023; and
new text end
new text begin (4) $5,000,000 in 2024new text end .
(e) Funds allocated to the solar energy production incentive program that have not been
committed to a specific project at the end of a program year remain available to the solar
energy production incentive program.
(f) Any unspent amount remaining on January 1, deleted text begin 2023deleted text end new text begin 2025new text end , must be transferred to the
renewable development account.
(g) A solar energy system receiving a production incentive under this section must be
sized to less than 120 percent of the customer's on-site annual energy consumption when
combined with other distributed generation resources and subscriptions provided under
section 216B.1641 associated with the premise. The production incentive must be paid for
ten years commencing with the commissioning of the system.
(h) The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.
new text begin
(a) For purposes of sections 116J.5491 to 116J.5493, the
following terms have the meanings given.
new text end
new text begin
(b) "Impacted community" means a municipality, Tribal government, or county in which
an impacted facility is located.
new text end
new text begin
(c) "Impacted facility" means an electric generating unit powered by coal, nuclear energy,
or natural gas that is or was owned by a public utility, as defined in section 216B.02,
subdivision 4, and that:
new text end
new text begin
(1) is currently operating and (i) is projected, estimated, or scheduled to cease operations,
or (ii) whose cessation of operations has been proposed in an integrated resource plan filed
with the Public Utilities Commission under section 216B.2422; or
new text end
new text begin
(2) ceased operations or was removed from the local property tax base no earlier than
five years before the effective date of this section.
new text end
new text begin
(d) "Impacted worker" means a Minnesota resident:
new text end
new text begin
(1) employed at an impacted facility and who is facing the loss of employment as a result
of the impacted facility's retirement; or
new text end
new text begin
(2) employed by a company that, under contract, regularly performs construction,
maintenance, or repair work at an impacted facility and who is facing the loss of employment
or of work opportunities as a result of the impacted facility's retirement.
new text end
new text begin
(a) The Energy Transition Office is established
in the Department of Employment and Economic Development.
new text end
new text begin
(b) The director of the Energy Transition Office is appointed by the commissioner of
employment and economic development. The director must be qualified by experience in
issues related to energy, economic development, and the environment.
new text end
new text begin
(c) The office may employ staff necessary to carry out the duties required in this section.
new text end
new text begin
The purpose of the office is to:
new text end
new text begin
(1) address economic dislocations experienced by impacted workers after an impacted
facility is retired;
new text end
new text begin
(2) implement recommendations of the Minnesota energy transition plan developed in
section 116J.5493;
new text end
new text begin
(3) improve communication among local, state, federal, and private entities regarding
impacted facility retirement planning and implementation;
new text end
new text begin
(4) address local tax and fiscal issues related to the impacted facility's retirement and
develop strategies to reduce the resulting economic dislocation experienced by impacted
communities and impacted workers; and
new text end
new text begin
(5) assist the establishment and implementation of economic support programs, including
but not limited to property tax revenue replacement, community energy transition programs,
and economic development tools, for impacted communities and impacted workers.
new text end
new text begin
The office is authorized to:
new text end
new text begin
(1) administer programs to support impacted communities and impacted workers;
new text end
new text begin
(2) coordinate local, state, and federal resources to support impacted communities and
impacted workers;
new text end
new text begin
(3) coordinate the development of statewide policies addressing impacted communities
and impacted workers;
new text end
new text begin
(4) deliver programs and resources to impacted communities and impacted workers;
new text end
new text begin
(5) support impacted workers by establishing benefits and educating impacted workers
on applying for benefits;
new text end
new text begin
(6) act as a liaison among impacted communities, impacted workers, and state agencies;
new text end
new text begin
(7) assist state agencies to (i) address local tax, land use, economic development, and
fiscal issues related to an impacted facility's retirement, and (ii) develop strategies to support
impacted communities and impacted workers;
new text end
new text begin
(8) review existing programs supporting impacted workers and identify gaps that need
to be addressed;
new text end
new text begin
(9) support activities of the energy transition advisory committee members;
new text end
new text begin
(10) monitor transition efforts in other states and localities;
new text end
new text begin
(11) identify impacted facility closures and estimate job losses and the effect on impacted
communities and impacted workers;
new text end
new text begin
(12) maintain communication with all affected parties regarding closure dates; and
new text end
new text begin
(13) monitor and participate in administrative proceedings that affect the office's activities,
including matters before the Public Utilities Commission, the Department of Commerce,
the Department of Revenue, and other entities.
new text end
new text begin
(a) Beginning January 15, 2023, and each year thereafter, the Energy
Transition Office must submit a written report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy, economic development, and tax
policy and finance on the office's activities during the previous year.
new text end
new text begin
(b) The report must contain:
new text end
new text begin
(1) a list of impacted facility closures, projected associated job losses, and the effect on
impacted communities and impacted workers;
new text end
new text begin
(2) recommendations to support impacted communities and impacted workers;
new text end
new text begin
(3) information on the administration of assistance programs administered by the office;
and
new text end
new text begin
(4) updates on implementation of the Minnesota energy transition plan.
new text end
new text begin
The office may accept gifts and grants on behalf of
the state that constitute donations to the state. Funds received under this subdivision are
appropriated to the commissioner of employment and economic development to support
the purposes of the office.
new text end
new text begin
This section expires five years after the date the last impacted facility
in Minnesota ceases operations.
new text end
new text begin
The Energy Transition Advisory Committee is
established to develop a statewide energy transition plan and to advise the governor, the
commissioner, and the legislature on transition issues, established transition programs,
economic initiatives, and transition policy.
new text end
new text begin
(a) The advisory committee consists of 18 voting members and
eight ex officio nonvoting members.
new text end
new text begin
(b) The voting members of the advisory committee are appointed by the commissioner
of employment and economic development, except as specified below:
new text end
new text begin
(1) two members of the senate, one appointed by the majority leader of the senate and
one appointed by the minority leader of the senate;
new text end
new text begin
(2) two members of the house of representatives, one appointed by the speaker of the
house of representatives and one appointed by the minority leader of the house of
representatives;
new text end
new text begin
(3) one representative of the Prairie Island Indian community;
new text end
new text begin
(4) four representatives of impacted communities, of which two must represent counties
and two must represent municipalities, and, to the extent possible, of the impacted facilities
in those communities, at least one must be a coal plant, at least one must be a nuclear plant,
and at least one must be a natural gas plant;
new text end
new text begin
(5) three representatives of impacted workers at impacted facilities;
new text end
new text begin
(6) one representative of impacted workers employed by companies that, under contract,
regularly perform construction, maintenance, or repair work at an impacted facility;
new text end
new text begin
(7) one representative with professional economic development or workforce retraining
experience;
new text end
new text begin
(8) two representatives of utilities that operate an impacted facility;
new text end
new text begin
(9) one representative from a nonprofit organization with expertise and experience
delivering energy efficiency and conservation programs; and
new text end
new text begin
(10) one representative from the Coalition of Utility Cities.
new text end
new text begin
(c) The ex officio nonvoting members of the advisory committee consist of:
new text end
new text begin
(1) the governor or the governor's designee;
new text end
new text begin
(2) the commissioner of employment and economic development or the commissioner's
designee;
new text end
new text begin
(3) the commissioner of commerce or the commissioner's designee;
new text end
new text begin
(4) the commissioner of labor and industry or the commissioner's designee;
new text end
new text begin
(5) the commissioner of revenue or the commissioner's designee;
new text end
new text begin
(6) the executive secretary of the Public Utilities Commission or the secretary's designee;
new text end
new text begin
(7) the commissioner of the Pollution Control Agency or the commissioner's designee;
and
new text end
new text begin
(8) the chancellor of the Minnesota State Colleges and Universities or the chancellor's
designee.
new text end
new text begin
The appointing authorities must
appoint the members of the advisory committee by August 1, 2021. The commissioner of
employment and economic development must convene the first meeting by September 1,
2021, and must act as chair until the advisory committee elects a chair at the first meeting.
new text end
new text begin
The committee must elect a chair and vice-chair from among the
voting members for terms of two years.
new text end
new text begin
Advisory committee meetings are subject to chapter 13D.
new text end
new text begin
An advisory committee member is prohibited from
discussing or voting on issues relating to an organization in which the member has either a
direct or indirect financial interest.
new text end
new text begin
The advisory committee may accept gifts and grants
on behalf of the state and that constitute donations to the state. Funds received under this
subdivision are appropriated to the commissioner of employment and economic development
to support the activities of the advisory committee.
new text end
new text begin
The advisory committee must meet monthly until the energy transition
plan is submitted to the governor and the legislature. The chair may call additional meetings
as necessary.
new text end