SF 2216

3rd Engrossment - 94th Legislature (2025 - 2026) Posted on 05/02/2025 09:45am

A bill for an act
relating to commerce; establishing a budget for the Department of Commerce;
adding, modifying, and eliminating various provisions governing insurance,
financial institutions, commercial regulations and consumer protection, and
telecommunications; modifying cannabis provisions; modifying fees assessed by
the Department of Commerce; establishing a common interest community
ombudsperson and a common interest community register; classifying data; making
technical changes; appropriating money; amending Minnesota Statutes 2024,
sections 45.027, subdivisions 1, 2, by adding a subdivision; 45.24; 46A.04; 47.20,
subdivisions 2, 4a, 8; 47.77; 53B.61; 55.07, by adding a subdivision; 58B.02,
subdivision 8a; 58B.051; 60A.201, subdivision 2, by adding a subdivision; 60C.09,
subdivision 2; 60D.09, by adding a subdivision; 60D.15, subdivisions 4, 7, by
adding subdivisions; 60D.16, subdivision 2; 60D.17, subdivision 1; 60D.18,
subdivision 3; 60D.19, subdivision 4, by adding subdivisions; 60D.20, subdivision
1; 60D.217; 60D.22, subdivisions 1, 3, 6, by adding a subdivision; 60D.24,
subdivision 2; 60D.25; 62A.31, subdivisions 1r, 1w; 62A.65, subdivisions 1, 2,
by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision 1;
62D.221, by adding a subdivision; 62J.26, subdivisions 1, 2, 3, by adding
subdivisions; 62Q.73, subdivision 4; 65A.01, subdivision 3c; 72A.20, by adding
a subdivision; 80A.65, subdivision 2; 80A.66; 80E.12; 82.63, subdivision 2;
116.943, subdivisions 1, 5; 168.27, by adding a subdivision; 216B.40; 216B.62,
by adding a subdivision; 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3;
325G.24, subdivision 2; 334.01, subdivision 2; 342.17; 342.37, by adding
subdivisions; Laws 2023, chapter 63, article 9, section 5; proposing coding for
new law in Minnesota Statutes, chapters 45; 60D; 62A; 168A; 216B; 237; 239;
325E; 325F; 515B.

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

ARTICLE 1

COMMERCE FINANCE

Section 1. new text begin APPROPRIATIONS. new text end

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 "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027. If an appropriation in this act is enacted more than once in
the 2025 legislative session or a special session, the appropriation must be given effect only
once.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 41,339,000 new text end

new text begin $ new text end

new text begin 41,302,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 38,646,000 new text end	new text begin 38,609,000 new text end
new text begin Workers' Compensation Fund new text end	new text begin 600,000 new text end	new text begin 600,000 new text end
new text begin Special Revenue new text end	new text begin 2,093,000 new text end	new text begin 2,093,000 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 new text end

new text begin 2,954,000 new text end

new text begin 2,954,000 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
Minnesota Statutes, chapter 58B.
new text end

new text begin (c) $462,000 each year is for additional
securities unit staffing.
new text end

new text begin Subd. 3. new text end new text begin Administrative Services new text end

new text begin 12,143,000 new text end

new text begin 12,133,000 new text end

new text begin (a) $353,000 each year is for system
modernization and cybersecurity upgrades for
the unclaimed property program.
new text end

new text begin (b) $249,000 each year is for the senior safe
fraud prevention program.
new text end

new text begin (c) $500,000 each year is to create and
maintain the Prescription Drug Affordability
Board established under Minnesota Statutes,
section 62J.87.
new text end

new text begin (d) $12,000 each year is for the intermediate
blends of gasoline and biofuels report under
Minnesota Statutes, section 239.791,
subdivision 8.
new text end

new text begin (e) $657,000 the first year and $62,000 the
second year are for the development,
maintenance, and staff costs of the common
interest community register under Minnesota
Statutes, section 515B.5-101.
new text end

new text begin (f) $348,000 each year is for the common
interest community ombudsperson and related
staff under Minnesota Statutes, section
45.0137.
new text end

new text begin (g) $75,000 each year is for copper metal
licensing and enforcement under Minnesota
Statutes, section 325E.21.
new text end

new text begin The base for administrative services is
$12,411,000 in each of fiscal years 2028 and
2029.
new text end

new text begin Subd. 4. new text end new text begin Enforcement new text end

new text begin 6,421,000 new text end

new text begin 6,421,000 new text end

new text begin (a) $225,000 each year is to create and
maintain the Mental Health Parity and
Substance Abuse Accountability Office under
Minnesota Statutes, section 62Q.465.
new text end

new text begin (b) $197,000 each year is to create and
maintain a student loan advocate position
under Minnesota Statutes, section 58B.011.
new text end

new text begin Subd. 5. new text end new text begin Telecommunications new text end

new text begin 3,235,000 new text end

new text begin 3,235,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,142,000 new text end	new text begin 1,142,000 new text end
new text begin Special Revenue new text end	new text begin 2,093,000 new text end	new text begin 2,093,000 new text end

new text begin $2,093,000 each year is from the
telecommunications access Minnesota fund
under Minnesota Statutes, section 237.52,
subdivision 1, 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) $133,000 each year is 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 Subd. 6. new text end new text begin Insurance new text end

new text begin 13,689,000 new text end

new text begin 13,483,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 13,089,000 new text end	new text begin 12,883,000 new text end
new text begin Workers' Compensation new text end	new text begin 600,000 new text end	new text begin 600,000 new text end

new text begin (a) $136,000 each year is to advance
standardized health plan options.
new text end

new text begin (b) $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 (c) $600,000 each year is from the workers'
compensation fund.
new text end

new text begin (d) $42,000 each year is to ensure health plan
company compliance with Minnesota Statutes,
section 62Q.47, paragraph (h).
new text end

new text begin (e) $25,000 each year is to evaluate existing
statutory health benefit mandates.
new text end

new text begin Subd. 7. new text end new text begin Weights and Measures Division new text end

new text begin 2,897,000 new text end

new text begin 3,076,000 new text end

new text begin $1,341,000 the first year and $1,520,000 the
second year are for cannabis scale and
packaging inspections.
new text end

Sec. 3. new text begin OFFICE OF CANNABIS MANAGEMENT new text end

new text begin $ new text end

new text begin 37,150,000 new text end

new text begin $ new text end

new text begin 40,017,000 new text end

new text begin $690,000 each year is for testing products
regulated under Minnesota Statutes, section
151.72, and chapter 342.
new text end

new text begin $632,000 the first year and $696,000 the
second year is for operating a state reference
laboratory.
new text end

new text begin $15,000,000 each year is for cannabis industry
community renewal grants under Minnesota
Statutes, section 342.70. Of this amount, up
to three percent may be used to pay for
administrative expenses incurred by the Office
of Cannabis Management.
new text end

new text begin $1,000,000 each year is for transfer to the
CanGrow revolving loan account established
under Minnesota Statutes, section 342.73,
subdivision 4. Of this amount, up to three
percent may be used to pay for administrative
expenses incurred by the Office of Cannabis
Management.
new text end

new text begin The base is $40,103,000 in each of fiscal years
2028 and 2029.
new text end

Sec. 4.

Laws 2023, chapter 63, article 9, section 5, is amended to read:

Sec. 5. OFFICE OF CANNABIS MANAGEMENT

$

21,614,000

$

17,953,000

new text begin Notwithstanding Minnesota Statutes, section
16A.28, subdivision 3, of the appropriation in
fiscal year 2025, $6,000,000 is available until
June 30, 2027.
new text end

The base for this appropriation is $35,587,000
in fiscal year 2026 and $38,144,000 in fiscal
year 2027.

deleted text begin $1,000,000 the second year is for cannabis
industry community renewal grants under
Minnesota Statutes, section 342.70. Of these
amounts, up to three percent may be used for
administrative expenses. The base for this
appropriation is $15,000,000 in fiscal year
2026 and each fiscal year thereafter. deleted text end new text begin
$1,000,000 the second year is for cannabis
industry community renewal grants under
Minnesota Statutes, section 342.70.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2026. Of this amount, up to three
percent may be used to pay for administrative
expenses incurred by the Office of Cannabis
Management. The base for this appropriation
is $15,000,000 in fiscal year 2026 and each
fiscal year thereafter.
new text end

$1,000,000 each year is for transfer to the
CanGrow revolving loan account established
under Minnesota Statutes, section 342.73,
subdivision 4. Of these amounts, up to three
percent may be used for administrative
expenses.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

FINANCIAL INSTITUTIONS POLICY

Section 1.

Minnesota Statutes 2024, section 45.24, is amended to read:

45.24 LICENSE TECHNOLOGY FEES.

(a) The commissioner may establish and maintain an electronic licensing database system
for license origination, renewal, and tracking the completion of continuing education
requirements by individual licensees who have continuing education requirements, and
other related purposes.

(b) The commissioner shall pay for the cost of operating and maintaining the electronic
database system described in paragraph (a) through a technology surcharge imposed upon
the fee for license origination and renewal, for individual licenses that require continuing
education.

(c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
time of license origination and renewal.

(d) The Commerce Department technology account is hereby created as an account in
the special revenue fund.

(e) The commissioner shall deposit the surcharge permitted under this section in the
account created in paragraph (d), and funds in the account are appropriated to the
commissioner in the amounts needed for purposes of this section. The commissioner of
management and budget shall transfer an amount determined by the commissioner of
commerce from the account to the statewide electronic licensing system account under
section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
of licenses subject to this section.

(f) The commissioner deleted text begin shall deleted text end new text begin may new text end temporarily reduce or suspend the surcharge as necessary
if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of new text begin
June in new text end any calendar year and deleted text begin shall deleted text end new text begin must annually review the anticipated costs under
paragraph (b) to determine the amount to new text end increase or decrease the surcharge deleted text begin as necessary deleted text end
to keep the fund balance at an adequate level but not in excess of $2,000,000.

Sec. 2.

Minnesota Statutes 2024, section 46A.04, is amended to read:

46A.04 EXCEPTIONS AND EXEMPTIONS.

(a) The requirements under section 46A.03, subdivisions 3 new text begin , paragraph (b) new text end ; 5, paragraph
deleted text begin (a) deleted text end new text begin (b) new text end ; 9; and 10, do not apply to financial institutions that maintain customer information
concerning fewer than 5,000 consumers.

(b) This chapter does not apply to credit unions or federally insured depository
institutions.

Sec. 3.

Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For deleted text begin the deleted text end purposes of this section the terms defined in this subdivision
have the meanings given deleted text begin them deleted text end :

(1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
whether or not retained by the mortgagee or lender:

(a) Any insurance premiums including but not limited to premiums for title insurance,
fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
excluding any charges or sums retained by the mortgagee or lender as self-insured retention.

(b) Abstracting, title examination and search, and examination of public records.

(c) The preparation and recording of any or all documents required by law or custom
for closing a conventional or cooperative apartment loan.

(d) Appraisal and survey of real property securing a conventional loan or real property
owned by a cooperative apartment corporation of which a share or shares of stock or a
membership certificate or certificates are to secure a cooperative apartment loan.

(e) A single service charge, which includes any consideration, not otherwise specified
herein as an "actual closing cost" paid by the borrower and received and retained by the
lender for or related to the acquisition, making, refinancing or modification of a conventional
or cooperative apartment loan, and also includes any consideration received by the lender
for making a borrower's interest rate commitment or for making a borrower's loan
commitment, whether or not an actual loan follows the commitment. The term service charge
does not include forward commitment fees. The service charge shall not exceed one percent
of the original bona fide principal amount of the conventional or cooperative apartment
loan, except that in the case of a construction loan, the service charge shall not exceed two
percent of the original bona fide principal amount of the loan. That portion of the service
charge imposed because the loan is a construction loan shall be itemized and a copy of the
itemization furnished the borrower. A lender shall not collect from a borrower the additional
one percent service charge permitted for a construction loan if it does not perform the service
for which the charge is imposed or if third parties perform and charge the borrower for the
service for which the lender has imposed the charge. new text begin A loan that meets the Federal Qualified
Mortgage standards in Code of Federal Regulations, title 12, section 1026.43(e)(3), is exempt
from the service charge limitations under this section.
new text end

(f) Charges and fees necessary for or related to the transfer of real or personal property
securing a conventional or cooperative apartment loan or the closing of a conventional or
cooperative apartment loan paid by the borrower and received by any party other than the
lender.

(2) "Contract for deed" means an executory contract for the conveyance of real estate,
the original principal amount of which is less than $300,000. A commitment for a contract
for deed shall include an executed purchase agreement or earnest money contract wherein
the seller agrees to finance any part or all of the purchase price by a contract for deed.

(3) "Conventional loan" means a loan or advance of credit, other than a

loan or advance of credit made by a credit union or made pursuant to section 334.011,
to a noncorporate borrower in an original principal amount of less than or equal to the
conforming loan limit established by the Federal Housing Finance Agency under the Housing
and Recovery Act of 2018, Public Law 110-289, secured by a mortgage upon real property
containing one or more residential units or upon which at the time the loan is made it is
intended that one or more residential units are to be constructed, and which is not insured
or guaranteed by the secretary of housing and urban development, by the administrator of
veterans affairs, or by the administrator of the Farmers Home Administration, and which
is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
mortgage does not include contracts for deed or installment land contracts.

(4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
or advance of credit made by a credit union or made pursuant to section 334.011, to a
noncorporate borrower in an original principal amount of less than $100,000, secured by a
security interest on a share or shares of stock or a membership certificate or certificates
issued to a stockholder or member by a cooperative apartment corporation, which may be
accompanied by an assignment by way of security of the borrower's interest in the proprietary
lease or occupancy agreement in property issued by the cooperative apartment corporation
and which is not insured or guaranteed by the secretary of housing and urban development,
by the administrator of veterans affairs, or by the administrator of the Farmers Home
Administration.

(5) "Cooperative apartment corporation" means a corporation or cooperative organized
under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
reason of their ownership of stock or membership certificates in the corporation or
association, to occupy one or more residential units in a building owned or leased by the
corporation or association.

(6) "Forward commitment fee" means a fee or other consideration paid to a lender for
the purpose of securing a binding forward commitment by or through the lender to make
conventional loans to two or more credit worthy purchasers, including future purchasers,
of residential units, or a fee or other consideration paid to a lender for the purpose of securing
a binding forward commitment by or through the lender to make conventional loans to two
or more credit worthy purchasers, including future purchasers, of units to be created out of
existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
for the purpose of securing a binding forward commitment by or through the lender to make
cooperative apartment loans to two or more credit worthy purchasers, including future
purchasers, of a share or shares of stock or a membership certificate or certificates in a
cooperative apartment corporation; provided, that the forward commitment rate of interest
does not exceed the maximum lawful rate of interest effective as of the date the forward
commitment is issued by the lender.

(7) "Borrower's interest rate commitment" means a binding commitment made by a
lender to a borrower wherein the lender agrees that, if a conventional or cooperative
apartment loan is made following issuance of and pursuant to the commitment, the
conventional or cooperative apartment loan shall be made at a rate of interest not in excess
of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
to in the commitment is not in excess of the maximum lawful rate of interest effective as
of the date the commitment is issued by the lender to the borrower.

(8) "Borrower's loan commitment" means a binding commitment made by a lender to a
borrower wherein the lender agrees to make a conventional or cooperative apartment loan
pursuant to the provisions, including the interest rate, of the commitment, provided that the
commitment rate of interest does not exceed the maximum lawful rate of interest effective
as of the date the commitment is issued and the commitment when issued and agreed to
shall constitute a legally binding obligation on the part of the mortgagee or lender to make
a conventional or cooperative apartment loan within a specified time period in the future at
a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
the commitment is issued by the lender to the borrower; provided that a lender who issues
a borrower's loan commitment pursuant to the provisions of a forward commitment is
authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
maximum lawful rate of interest effective as of the date the forward commitment is issued
by the lender.

(9) "Finance charge" means the total cost of a conventional or cooperative apartment
loan including extensions or grant of credit regardless of the characterization of the same
and includes interest, finders fees, and other charges levied by a lender directly or indirectly
against the person obtaining the conventional or cooperative apartment loan or against a
seller of real property securing a conventional loan or a seller of a share or shares of stock
or a membership certificate or certificates in a cooperative apartment corporation securing
a cooperative apartment loan, or any other party to the transaction except any actual closing
costs and any forward commitment fee. The finance charges plus the actual closing costs
and any forward commitment fee, charged by a lender shall include all charges made by a
lender other than the principal of the conventional or cooperative apartment loan. The finance
charge, with respect to wraparound mortgages, shall be computed based upon the face
amount of the wraparound mortgage note, which face amount shall consist of the aggregate
of those funds actually advanced by the wraparound lender and the total outstanding principal
balances of the prior note or notes which have been made a part of the wraparound mortgage
note.

(10) "Lender" means any person making a conventional or cooperative apartment loan,
or any person arranging financing for a conventional or cooperative apartment loan. The
term also includes the holder or assignee at any time of a conventional or cooperative
apartment loan.

(11) "Loan yield" means the annual rate of return obtained by a lender over the term of
a conventional or cooperative apartment loan and shall be computed as the annual percentage
rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
the rate of interest or loan yield shall be based upon the principal balance set forth in the
wraparound note and mortgage and shall not include any interest differential or yield
differential between the stated interest rate on the wraparound mortgage and the stated
interest rate on the one or more prior mortgages included in the stated loan amount on a
wraparound note and mortgage.

(12) "Person" means an individual, corporation, business trust, partnership or association
or any other legal entity.

(13) "Residential unit" means any structure used principally for residential purposes or
any portion thereof, and includes a unit in a common interest community, a nonowner
occupied residence, and any other type of residence regardless of whether the unit is used
as a principal residence, secondary residence, vacation residence, or residence of some other
denomination.

(14) "Vendor" means any person or persons who agree to sell real estate and finance
any part or all of the purchase price by a contract for deed. The term also includes the holder
or assignee at any time of the vendor's interest in a contract for deed.

Sec. 4.

Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:

Subd. 8.

Conventional loan provisions.

new text begin (a) new text end A lender making a conventional loan shall
comply with the following:

(1) the promissory note and mortgage evidencing a conventional loan shall be printed
in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
typewritten numerals, or shall be legibly handwritten deleted text begin . deleted text end new text begin ;
new text end

(2) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender agrees to furnish the borrower with a conformed copy of the promissory note and
mortgage at the time they are executed or within a reasonable time after recordation of the
mortgage deleted text begin . deleted text end new text begin ; and
new text end

(3) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender, if it intends to foreclose, agrees to give the borrower written notice of any default
under the terms or conditions of the promissory note or mortgage, by sending the notice by
deleted text begin certified deleted text end new text begin : (i) first-class new text end mail to the address of the mortgaged property or deleted text begin such other deleted text end new text begin a different new text end
address deleted text begin as deleted text end the borrower deleted text begin may have designated deleted text end new text begin designates new text end in writing to the lender new text begin ; or (ii)
email or other electronic communication, if agreed to by the lender and the borrower in
writing new text end . The lender need not give the borrower the notice required by this deleted text begin paragraph deleted text end new text begin clause new text end
if the default consists of the borrower selling the mortgaged property without the required
consent of the lender.

new text begin (b) new text end The mortgage shall further provide that the notice new text begin under paragraph (a), clause (3), new text end
shall contain the following provisions:

deleted text begin (a) deleted text end new text begin (1) new text end the nature of the default by the borrower;

deleted text begin (b) deleted text end new text begin (2) new text end the action required to cure the default;

deleted text begin (c) deleted text end new text begin (3) new text end a date, not less than 30 days from the date the notice is mailed by which the
default must be cured;

deleted text begin (d) deleted text end new text begin (4) new text end that failure to cure the default on or before the date specified in the notice may
result in acceleration of the sums secured by the mortgage and sale of the mortgaged
premises;

deleted text begin (e) deleted text end new text begin (5) new text end that the borrower has the right to reinstate the mortgage after acceleration; and

deleted text begin (f) deleted text end new text begin (6) new text end that the borrower has the right to bring a court action to assert the nonexistence
of a default or any other defense of the borrower to acceleration and sale.

Sec. 5.

Minnesota Statutes 2024, section 47.77, is amended to read:

47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.

(a) No financial institution shall initiate a transfer of a deposit account to another deposit
account bearing different identification information without sending at least 30 days' prior
notice to at least one of the deposit account holders at the last known address on file with
the financial institution. If the new account is subject to different terms, the financial
institution must obtain the written consent of at least one of the deposit account holders
before the new terms become effective.

(b) No financial institution shall initiate a closure of a deposit account without first
sending at least one of the deposit account holders a notice of intent to close the deposit
account. The notice must be sent to the deposit account holder's last known address on file
with the financial institution at least 30 days before the financial institution closes the deposit
account deleted text begin ; deleted text end new text begin , new text end except that deleted text begin , deleted text end if the financial institution has reasonable suspicion to believe that
account is being used in connection with a check-related fraud or other crime deleted text begin or that deleted text end new text begin , new text end funds
will not be available to pay items drawn on the account, new text begin or the deposit account holder has
engaged in disruptive, hostile, or harassing behavior toward financial institution employees
or customers, new text end the notice may be sent the same day as the account is closed.

(c) As used in this section, the following terms have the meanings given them. "Deposit
account" means a contract of deposit of funds between a depositor and a financial institution,
and includes a checking account, savings account, certificate of deposit share account, and
other like arrangement. "Financial institution" means any organization authorized to do
business under state or federal laws relating to financial institutions, including, without
limitation, banks and trust companies, savings banks, savings associations, industrial loan
and thrift companies, and credit unions.

Sec. 6.

Minnesota Statutes 2024, section 53B.61, is amended to read:

53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.

(a) A licensee must maintain at all times permissible investments that have a market
value computed in accordance with United States generally accepted accounting principles
of not less than the aggregate amount of all of the licensee's outstanding money transmission
obligations.

(b) Except for permissible investments enumerated in section 53B.62, deleted text begin paragraph (a) deleted text end new text begin
subdivision 1 new text end new text begin , clause (1) new text end , the commissioner may by administrative rule or order, with respect
to any licensee, limit the extent to which a specific investment maintained by a licensee
within a class of permissible investments may be considered a permissible investment, if
the specific investment represents undue risk to customers not reflected in the market value
of investments.

(c) Permissible investments, even if commingled with other assets of the licensee, are
held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
transmission obligations in the event of insolvency; the filing of a petition by or against the
licensee under the United States Bankruptcy Code, United States Code, title 11, sections
101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
the filing of a petition by or against the licensee for receivership; the commencement of any
other judicial or administrative proceeding for the licensee's dissolution or reorganization;
or in the event of an action by a creditor against the licensee who is not a beneficiary of this
statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
are subject to attachment, levy of execution, or sequestration by order of any court, except
for a beneficiary of the statutory trust.

(d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
(4), the commissioner must notify the applicable regulator of each state in which the licensee
is licensed to engage in money transmission, if any, of the establishment of the trust or the
funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
any other permissible investments held in trust for the benefit of the purchasers and holders
of the licensee's outstanding money transmission obligations, are deemed held in trust for
the benefit of the purchasers and holders of the licensee's outstanding money transmission
obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
permissible investments are required to be held in Minnesota and other states, as defined
by a substantially similar statute in the other state. Any statutory trust established under this
section terminates upon extinguishment of all of the licensee's outstanding money
transmission obligations.

(e) The commissioner may by rule or by order allow other types of investments that the
commissioner determines are of sufficient liquidity and quality to be a permissible
investment. The commissioner is authorized to participate in efforts with other state regulators
to determine that other types of investments are of sufficient liquidity and quality to be a
permissible investment.

Sec. 7.

Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Safe deposit lease; automatic renewal. new text end

new text begin A safe deposit lease may renew
automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
at any time in writing or in any other manner described in the lease.
new text end

Sec. 8.

Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:

Subd. 8a.

Lender.

"Lender" means an entity engaged in the business of securing, making,
or extending student loans. Lender does not include, to the extent that state regulation is
preempted by federal law:

(1) a bank, savings banks, savings and loan association, or credit union;

(2) a wholly owned subsidiary of a bank or credit union;

(3) an operating subsidiary where each owner is wholly owned by the same bank or
credit union;

(4) the United States government, through Title IV of the Higher Education Act of 1965,
as amended, and administered by the United States Department of Education;

(5) an agency, instrumentality, or political subdivision of Minnesota;

(6) a regulated lender organized under chapter 56, except that a regulated lender must
file the annual report required for lenders under section 58B.03, subdivision deleted text begin 11 deleted text end new text begin 10 new text end ; or

(7) a person who is not in the business of making student loans and who makes no more
than three student loans, with the person's own funds, during any 12-month period.

Sec. 9.

Minnesota Statutes 2024, section 58B.051, is amended to read:

58B.051 REGISTRATION FOR LENDERS.

(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender
before providing services in Minnesota. A lender must not offer or make a student loan to
a resident of Minnesota without first registering with the commissioner as provided in this
section.

(b) A registration application must include:

(1) the lender's name;

(2) the lender's address;

(3) the names of all officers, directors, owners, or other persons in control of an applicant,
as defined in section 58B.02, subdivision 6; and

(4) any other information the commissioner requires deleted text begin by rule deleted text end .

(c) Registration issued or renewed expires December 31 of each year. A lender must
renew the lender's registration on an annual basis.

(d) The commissioner may adopt and enforce:

(1) registration procedures for lenders, which may include using the Nationwide
Multistate Licensing System and Registry;

(2) nonrefundable registration fees for lenders, which may include fees for using the
Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;

(3) procedures and nonrefundable fees to renew a lender's registration, which may include
fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be
paid directly by the lender; and

(4) alternate registration procedures and nonrefundable fees for postsecondary education
institutions that offer student loans.

Sec. 10.

Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:

Subd. 2.

Registration application and renewal filing fee.

Every applicant for an initial
or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in
the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an
investment adviser representative. When an application is denied or withdrawn, the filing
fee shall be retained. A registered agent who has terminated employment with one
broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
fee of deleted text begin $25 deleted text end new text begin $85 new text end .

Sec. 11.

Minnesota Statutes 2024, section 80A.66, is amended to read:

80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.

(a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
minimum financial requirements for broker-dealers registered or required to be registered
under this chapter and investment advisers registered or required to be registered under this
chapter.

(b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
chapter and an investment adviser registered or required to be registered under this chapter
shall file such financial reports as are required by a rule adopted or order issued under this
chapter. If the information contained in a record filed under this subsection is or becomes
inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
amendment.

(c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-22):

(1) a broker-dealer registered or required to be registered under this chapter and an
investment adviser registered or required to be registered under this chapter shall make and
maintain the accounts, correspondence, memoranda, papers, books, and other records
required by rule adopted or order issued under this chapter;

(2) broker-dealer records required to be maintained under paragraph (1) may be
maintained in any form of data storage acceptable under Section 17(a) of the Securities
Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
administrator; and

(3) investment adviser records required to be maintained under paragraph (d)(1) may
be maintained in any form of data storage required by rule adopted or order issued under
this chapter.

(d) Records and reports of private funds.

(1) In general. An investment adviser to a private fund shall maintain such records of,
and file with the administrator such reports and amendments thereto, that an exempt reporting
adviser is required to file with the Securities and Exchange Commission pursuant to SEC
Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.

(2) Treatment of records. The records and reports of any private fund to which an
investment adviser provides investment advice shall be deemed to be the records and reports
of the investment adviser.

(3) Required information. The records and reports required to be maintained by an
investment adviser, which are subject to inspection by a representative of the administrator
at any time, shall include for each private fund advised by the investment adviser, a
description of:

(A) the amount of assets under management;

(B) the use of leverage, including off-balance-sheet leverage, as to the assets under
management;

(C) counterparty credit risk exposure;

(D) trading and investment positions;

(E) valuation policies and practices of the fund;

(F) types of assets held;

(G) side arrangements or side letters, whereby certain investors in a fund obtain more
favorable rights or entitlements than other investors;

(H) trading practices; and

(I) such other information as the administrator determines is necessary and appropriate
in the public interest and for the protection of investors, which may include the establishment
of different reporting requirements for different classes of fund advisers, based on the type
or size of the private fund being advised.

(4) Filing of records. A rule or order under this chapter may require each investment
adviser to a private fund to file reports containing such information as the administrator
deems necessary and appropriate in the public interest and for the protection of investors.

(e) Audits or inspections. The records of a broker-dealer registered or required to be
registered under this chapter and of an investment adviser registered or required to be
registered under this chapter, including the records of a private fund described in paragraph
(d) and the records of investment advisers to private funds, are subject to such reasonable
periodic, special, or other audits or inspections by a representative of the administrator,
within or without this state, as the administrator considers necessary or appropriate in the
public interest and for the protection of investors. An audit or inspection may be made at
any time and without prior notice. The administrator may copy, and remove for audit or
inspection copies of, all records the administrator reasonably considers necessary or
appropriate to conduct the audit or inspection. The administrator may assess a reasonable
charge for conducting an audit or inspection under this subsection.

(f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
under this chapter may require a broker-dealer or investment adviser that has custody of or
discretionary authority over funds or securities of a customer or client to obtain insurance
or post a bond or other satisfactory form of security in an amount of at least $25,000, but
not to exceed $100,000. The administrator may determine the requirements of the insurance,
bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
of security may not be required of a broker-dealer registered under this chapter whose net
capital exceeds, or of an investment adviser registered under this chapter whose minimum
financial requirements exceed, the amounts required by rule or order under this chapter.
The insurance, bond, or other satisfactory form of security must permit an action by a person
to enforce any liability on the insurance, bond, or other satisfactory form of security if
instituted within the time limitations in section 80A.76(j)(2).

(g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
customer except under the supervision of a broker-dealer and an investment adviser
representative may not have custody of funds or securities of a client except under the
supervision of an investment adviser or a federal covered investment adviser. A rule adopted
or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
regarding custody of funds or securities of a customer and on an investment adviser regarding
custody of securities or funds of a client.

(h) Investment adviser brochure rule. With respect to an investment adviser registered
or required to be registered under this chapter, a rule adopted or order issued under this
chapter may require that information or other record be furnished or disseminated to clients
or prospective clients in this state as necessary or appropriate in the public interest and for
the protection of investors and advisory clients.

(i) Continuing education. A rule adopted or order issued under this chapter may require
an individual registered under section 80A.57 or 80A.58 to participate in a continuing
education program approved by the Securities and Exchange Commission and administered
by a self-regulatory organization new text begin , the North American Securities Administrators Association,
or the commissioner new text end .

Sec. 12.

Minnesota Statutes 2024, section 82.63, subdivision 2, is amended to read:

Subd. 2.

Additional broker's license.

An individual who holds a broker's license in the
broker's own name or for or on behalf of a business entity must be issued an additional
broker's license only upon demonstrating:

(1) that the additional license is necessary in order to serve a legitimate business purpose;

(2) that the broker will be capable of supervising all salespersons over whom the broker
will have supervisory responsibility or, in the alternative, that the broker will have no
supervisory responsibilities under the additional license; and

(3) that the broker:

(i) has at least deleted text begin 51 deleted text end new text begin 20 new text end percent ownership interest in each business entity for or on whose
behalf the broker holds or will hold a broker's license; or

(ii) is an elected or appointed officer, signing partner, or managing member of both the
business entity for which or on whose behalf the broker already holds a license, and an
affiliated business entity for which or on whose behalf the broker is applying for an additional
license.

For the purpose of this section and sections 82.58, subdivisions 1 to 4; 82.62, subdivisions
1 to 4; 82.65; and 82.82, subdivision 2, "affiliated business entity" means a business entity
that deleted text begin is majority-owned by deleted text end new text begin has shared ownership by one or more of new text end the same persons as the
business entity for which or on whose behalf the broker is already licensed to act.

For the purposes of this section and sections 82.58, subdivisions 1 to 4; 82.62,
subdivisions 1 to 4; 82.65; and 82.82, subdivision 2, a legitimate business purpose includes
engaging in a different and specialized area of real estate or maintaining an existing business
name.

Sec. 13. new text begin APPLICATION OF MINNESOTA STATUTES, SECTION 65A.3025.
new text end

new text begin Minnesota Statutes, section 65A.3025, applies to policies issued or renewed on or after
August 1, 2024. Minnesota Statutes, section 65A.3025, does not apply to policies issued or
renewed prior to that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2024.
new text end

Sec. 14. new text begin CERTAIN COMPLIANCE OPTIONAL.
new text end

new text begin A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
with respect to conventional loan mortgage documents dated between August 1, 2024, and
July 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 31, 2024.
new text end

ARTICLE 3

HEALTH INSURANCE

Section 1.

Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:

Subd. 1r.

Community rate.

new text begin (a) new text end Each health maintenance organization, health service
plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
shall establish a separate community rate for that coverage. Beginning January 1, 1993, no
Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
except at the community rate required by this subdivision. The same community rate must
apply to newly issued coverage and to renewal coverage.

new text begin (b) new text end For coverage that supplements Medicare and for the Part A rate calculation for plans
governed by section 1833 of the federal Social Security Act, United States Code, title 42,
section 1395, et seq., the community rate may take into account only the following factors:

(1) actuarially valid differences in benefit designs or provider networks;

(2) geographic variations in rates if preapproved by the commissioner of commerce;
deleted text begin and
deleted text end

(3) premium reductions in recognition of healthy lifestyle behaviors, including but not
limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
and must relate only to those healthy lifestyle behaviors that have a proven positive impact
on health. Factors used by the health carrier making this premium reduction must be filed
with and approved by the commissioner of commerce deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) premium increases in recognition of late enrollment or reenrollment.
new text end

new text begin (c) The premium increase permitted under paragraph (b), clause (4), must not exceed
ten percent for each late enrollment or reenrollment. The increase must only be applied as
a flat percentage of premium for an individual who: (1) enrolls in a Medicare supplement
policy outside of the individual's initial enrollment period in Medicare Part B; and (2) is
not eligible for a guaranteed issue period under subdivision 1u. Each premium increase
permitted under paragraph (b), clause (4), may be applied for more than one plan year,
including to renewals and reenrollments.
new text end

new text begin (d) new text end For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey,
Scott, or Washington County, a health plan may, at the option of the health carrier, phase
in compliance under the following timetable:

deleted text begin (i) deleted text end new text begin (1) new text end a premium adjustment as of March 1, 1993, that consists of one-half of the
difference between the community rate that would be applicable to the person as of March
1, 1993, and the premium rate that would be applicable to the person as of March 1, 1993,
under the rate schedule permitted on December 31, 1992. A health plan may, at the option
of the health carrier, implement the entire premium difference described in this clause for
any person as of March 1, 1993, if the premium difference would be 15 percent or less of
the premium rate that would be applicable to the person as of March 1, 1993, under the rate
schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
of whether the premium difference causes premiums to rise or to fall. The premium difference
described in this clause is in addition to any premium adjustment attributable to medical
cost inflation or any other lawful factor and is intended to describe only the premium
difference attributable to the transition to the community rate; and

deleted text begin (ii) deleted text end new text begin (2) new text end with respect to any person whose premium adjustment was constrained under
clause deleted text begin (i) deleted text end new text begin (1) new text end , a premium adjustment as of January 1, 1994, that consists of the remaining
one-half of the premium difference attributable to the transition to the community rate, as
described in clause deleted text begin (i) deleted text end new text begin (1) new text end .

new text begin (e) new text end A health plan that initially follows the phase-in timetable may at any subsequent
time comply on a more rapid timetable. A health plan that is in full compliance as of January
1, 1993, may not use the phase-in timetable and must remain in full compliance. Health
plans that follow the phase-in timetable must charge the same premium rate for newly issued
coverage that they charge for renewal coverage. A health plan whose premiums are
constrained by new text begin paragraph (d), new text end clause deleted text begin (i) deleted text end new text begin (1), new text end may take the constraint into account in
establishing its community rate.

new text begin (f) new text end From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
option, charge the community rate under this paragraph or may instead charge premiums
permitted as of December 31, 1992.

Sec. 2.

Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:

Subd. 1w.

Open enrollment.

A medicare supplement policy or certificate must not be
sold or issued to an deleted text begin eligible deleted text end individual outside of the time periods described in deleted text begin subdivision deleted text end new text begin
subdivisions 1h and new text end 1u.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026.
new text end

Sec. 3.

new text begin [62A.481] LIMITED LONG-TERM CARE INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be known and cited as the "Limited
Long-Term Care Insurance Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Applicant" means:
new text end

new text begin (1) in the case of an individual limited long-term care insurance policy, the person who
seeks to contract for benefits; or
new text end

new text begin (2) in the case of a group limited long-term care insurance policy, the proposed certificate
holder.
new text end

new text begin (c) "Certificate" means a certificate issued under a group limited long-term care insurance
policy that has been delivered or issued for delivery in Minnesota.
new text end

new text begin (d) "Commissioner" means the commissioner of commerce.
new text end

new text begin (e) "Elimination period" means the length of time between meeting the eligibility for
benefit payment and receiving benefit payments from an insurer.
new text end

new text begin (f) "Group limited long-term care insurance" means a limited long-term care insurance
policy that is delivered or issued for delivery in Minnesota and issued to:
new text end

new text begin (1) one or more employers or labor organizations, a trust or the trustees of a fund
established by one or more employers, labor organizations, or a combination of employers
and labor organizations for: (i) employees, former employees, or a combination of employees
or former employees; or (ii) members, former members, or a combination of members or
former members of the labor organizations;
new text end

new text begin (2) a professional, trade, or occupational association for the association's members,
former members, retired members, or a combination of members, former members, or retired
members, if the association:
new text end

new text begin (i) is composed of individuals, all of whom are or were actively engaged in the same
profession, trade, or occupation; and
new text end

new text begin (ii) has been maintained in good faith for purposes other than obtaining insurance;
new text end

new text begin (3) an association, a trust, or the trustees of a fund established, created, or maintained
for the benefit of members of one or more associations. Prior to advertising, marketing, or
offering the policy within Minnesota, the association or associations, or the insurer of the
association or associations, must file evidence with the commissioner that the association
or associations have at the outset:
new text end

new text begin (i) a minimum of 100 persons;
new text end

new text begin (ii) been organized and maintained in good faith for purposes other than obtaining
insurance;
new text end

new text begin (iii) been in active existence for at least one year; and
new text end

new text begin (iv) a constitution and bylaws that provide:
new text end

new text begin (A) the association or associations hold regular meetings not less than annually to further
purposes of the members;
new text end

new text begin (B) except for credit unions, the association or associations collect dues or solicit
contributions from members; and
new text end

new text begin (C) the members have voting privileges and representation on the governing board and
committees.
new text end

new text begin Thirty days after the filing, the association or associations are deemed to satisfy the
organizational requirements unless the commissioner makes a finding that the association
or associations do not satisfy the organizational requirements; or
new text end

new text begin (4) a group other than a group described in clauses (1) to (3), subject to the commissioner
finding that:
new text end

new text begin (i) issuing the policy is not contrary to the public interest;
new text end

new text begin (ii) issuing the policy results in acquisition or administrative economies; and
new text end

new text begin (iii) the policy's benefits are reasonable in relation to the premiums charged.
new text end

new text begin (g) "Limited long-term care insurance" means an insurance policy or rider:
new text end

new text begin (1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
organization; or (vi) a similar organization, to the extent the organization is authorized to
issue life or health insurance;
new text end

new text begin (2) advertised, marketed, offered, or designed to provide coverage for less than 12
consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
or other basis; and
new text end

new text begin (3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care service provided in a setting other than a
hospital's acute care unit.
new text end

new text begin Limited long-term care insurance includes a policy or rider that provides for payment of
benefits based upon cognitive impairment or the loss of functional capacity. Limited
long-term care insurance does not include an insurance policy that is offered primarily to
provide basic Medicare supplement coverage, basic hospital expense coverage, basic
medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
expense coverage, disability income or related asset-protection coverage, accident-only
coverage, specified disease or specified accident coverage, or limited benefit health coverage.
new text end

new text begin (h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
health, hospital, or medical service corporation; prepaid health plan; health maintenance
organization; or any similar organization.
new text end

new text begin (i) "Waiting period" means the time an insured individual must wait before some or all
of the insured individual's coverage becomes effective.
new text end

new text begin Subd. 3. new text end

new text begin Scope. new text end

new text begin (a) This section applies to policies delivered or issued for delivery in
Minnesota on or after January 1, 2026. This section does not supersede an obligation that
an entity subject to this section has to comply with other applicable insurance laws to the
extent the other insurance laws do not conflict with this section, except that laws and
regulations designed and intended to apply to Medicare supplement insurance policies must
not be applied to limited long-term care insurance.
new text end

new text begin (b) Notwithstanding any other provision of this section, a product, policy, certificate, or
rider advertised, marketed, or offered as limited long-term care insurance is subject to this
section.
new text end

new text begin Subd. 4. new text end

new text begin Group limited long-term care insurance; extra-territorial jurisdiction. new text end

new text begin Group
limited long-term care insurance coverage must not be offered to a Minnesota resident under
a group policy issued in another state to a group described in subdivision 2, paragraph (f),
clause (4), unless Minnesota or another state having statutory and regulatory limited
long-term care insurance requirements substantially similar to those adopted in Minnesota
makes a determination that the statutory and regulatory limited long-term care insurance
requirements have been met.
new text end

new text begin Subd. 5. new text end

new text begin Limited long-term care insurance; disclosure and performance
standards. new text end

new text begin (a) A limited long-term care insurance policy must not:
new text end

new text begin (1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
certificate holder's age, gender, or deterioration of mental or physical health;
new text end

new text begin (2) contain a provision that establishes a new waiting period in the event existing coverage
is converted to or replaced by a new or other form of coverage within the same company,
except with respect to an increase in benefits voluntarily selected by the insured individual
or group policyholder; or
new text end

new text begin (3) provide coverage for only skilled nursing care or provide significantly more coverage
for skilled nursing care in a facility than coverage provided for lower levels of care.
new text end

new text begin (b) A limited long-term care insurance policy or certificate issued to a group identified
in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
for preexisting condition that is more restrictive than or excludes a condition for which
medical advice or treatment was recommended by or received from a health care services
provider within the six months preceding the date an insured individual's coverage is
effective; and (2) excluding coverage for a loss or confinement that is the result of a
preexisting condition unless the loss or confinement begins within six months of the date
an insured individual's coverage is effective. The commissioner may extend the limitation
periods established in clauses (1) and (2) with respect to specific age group categories in
specific policy forms upon a finding that the extension is in the public interest. The definition
of preexisting condition required under clause (1) does not prohibit an insurer from using
an application form designed to elicit the complete health history of an applicant and, on
the basis of the applicant's answers on the application, from underwriting in accordance
with that insurer's established underwriting standards. Unless otherwise provided in the
policy or certificate, an insurer is not required to cover a preexisting condition, regardless
of whether the preexisting condition is disclosed on the application, until the waiting period
under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting diseases or physical conditions
beyond the waiting period established in clause (2).
new text end

new text begin (c) A limited long-term care insurance policy must not be delivered or issued for delivery
in Minnesota if the policy conditions eligibility: (1) for any benefits, on a prior hospitalization
requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
higher level of institutional care; or (3) for any benefits other than waiver of premium,
post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
of skilled care services.
new text end

new text begin (d) A limited long-term care insurance applicant has the right to: (1) return the policy,
certificate, or rider to the company or the company's agent or insurance producer within 30
days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
policy, certificate, or rider for any reason.
new text end

new text begin (e) A limited long-term care insurance policy, certificate, or rider must have a notice
prominently printed on the first page or attached to the policy, certificate, or rider that
includes specific instructions for a limited long-term care insurance applicant to return a
policy, certificate, or rider under paragraph (d). The following statement or a substantially
similar statement must be included with the instructions:
new text end

new text begin "You have 30 days from the date you receive this policy, certificate, or rider to review
and return it to the company if you decide not to keep it. You do not have to tell the company
why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
return it to the company at the company's administrative office, or you may return it to the
agent or insurance producer that you bought it from. You must return the policy, certificate,
or rider within 30 days of the date you first received it. The company must refund the full
amount of any premium paid within 30 days of the date the company receives the returned
policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
A returned policy, certificate, or rider is void, as if it never was issued."
new text end

new text begin This paragraph does not apply to certificates issued pursuant to a policy issued to a group
defined in subdivision 2, paragraph (f), clause (1).
new text end

new text begin (f) A coverage outline must be delivered to a prospective applicant for limited long-term
care insurance at the time an initial solicitation is made, using a means that prominently
directs the recipient's attention to the coverage outline and the coverage outline's purpose.
The commissioner must prescribe: (1) a standard format, including style, arrangement, and
overall appearance; and (2) the content that must be contained on a coverage outline. With
respect to an agent solicitation, the agent must deliver the coverage outline before presenting
an application or enrollment form. With respect to a direct response solicitation, the coverage
outline must be provided in conjunction with an application or enrollment form. Delivery
of a coverage outline is not required for a policy issued to a group defined in subdivision
2, paragraph (f), clause (1), if the information described in paragraph (g) is contained in
other materials relating to enrollment. A copy of the other materials must be made available
to the commissioner upon request.
new text end

new text begin (g) The coverage outline provided under paragraph (f) must include:
new text end

new text begin (1) a description of the principal benefits and coverage provided in the policy;
new text end

new text begin (2) a description of the eligibility triggers for benefits and how the eligibility triggers
are met;
new text end

new text begin (3) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy;
new text end

new text begin (4) a statement describing the terms under which the policy, certificate, or both may be
continued in force or discontinued, including any reservation in the policy of a right to
change premium. A continuation or conversion provision for group coverage must be
specifically described;
new text end

new text begin (5) a statement indicating that coverage outline is a summary only and not an insurance
contract, and that the policy or group master policy contains the governing contractual
provisions;
new text end

new text begin (6) a description of the terms under which the policy or certificate may be returned and
premium refunded;
new text end

new text begin (7) a brief description of the relationship between cost of care and benefits; and
new text end

new text begin (8) a statement that discloses to the policyholder or certificate holder that the policy is
not long-term care insurance.
new text end

new text begin (h) A certificate issued pursuant to a group limited long-term care insurance policy that
is delivered or issued for delivery in Minnesota must include:
new text end

new text begin (1) a description of the principal benefits and coverage provided in the policy;
new text end

new text begin (2) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy; and
new text end

new text begin (3) a statement indicating that the group master policy determines governing contractual
provisions.
new text end

new text begin (i) If an application for a limited long-term care insurance contract or certificate is
approved, the issuer must deliver the contract or certificate of insurance to the applicant no
later than 30 days after the date the application is approved.
new text end

new text begin (j) If a claim under a limited long-term care insurance contract is denied, the issuer must,
within 60 days of the date the policyholder, certificate holder, or a representative of the
policyholder or certificate holder submits a written request:
new text end

new text begin (1) provide a written explanation detailing the reasons for the denial; and
new text end

new text begin (2) make available all information directly related to the denial.
new text end

new text begin (k) A disclosure, statement, or written information and explanation required in this
section, whether in print or electronic form, must accommodate the communication needs
of individuals with disabilities and persons with limited English proficiency, as required by
law.
new text end

new text begin Subd. 6. new text end

new text begin Incontestability period. new text end

new text begin (a) An insurer may (1) rescind a limited long-term
care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
insurance claim, for a policy or certificate that has been in force for less than six months
upon a showing of misrepresentation that is material to the coverage acceptance.
new text end

new text begin (b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
certificate that has been in force for at least six months but less than two years upon a
showing of misrepresentation that is both material to the coverage acceptance and that
pertains to the condition for which benefits are sought.
new text end

new text begin (c) A policy or certificate that has been in force for two years is not contestable upon
the grounds of misrepresentation alone. A policy or certificate that has been in force for
two years may be contested only upon a showing that the insured knowingly and intentionally
misrepresented relevant facts relating to the insured individual's health.
new text end

new text begin (d) A limited long-term care insurance policy or certificate may be field issued if
compensation to the field issuer is not based on the number of policies or certificates issued.
For purposes of this paragraph, "field issued" means a policy or certificate issued by a
producer or a third-party administrator (1) pursuant to the underwriting authority granted
to the producer or third-party administrator by an insurer, and (2) using the insurer's
underwriting guidelines.
new text end

new text begin (e) If an insurer paid benefits under the limited long-term care insurance policy or
certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
is rescinded.
new text end

new text begin Subd. 7. new text end

new text begin Nonforfeiture benefits. new text end

new text begin (a) A limited long-term care insurance policy may
offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
must provide a contingent benefit upon lapse that must be available for a specified period
of time after a substantial increase in premium rates, as determined by the commissioner
under paragraph (c).
new text end

new text begin (b) When a group limited long-term care insurance policy is issued, a nonforfeiture
benefit offer must be made to the group policyholder. If the policy is issued as group limited
long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
other than a continuing care retirement community or other similar entity, a nonforfeiture
benefit offer must be made to each proposed certificate holder.
new text end

new text begin Subd. 8. new text end

new text begin Severability. new text end

new text begin If any provision of this section or the application of the provision
to any person or circumstance is held invalid for any reason, the remainder of the section
and the application of the invalid provision to other persons or circumstances is not affected.
new text end

new text begin Subd. 9. new text end

new text begin Penalties. new text end

new text begin In addition to any other penalties provided by the laws of Minnesota,
an insurer or producer that violates any requirement under this section or other law relating
to the regulation of limited long-term care insurance or the marketing of limited long-term
care insurance is subject to a fine of up to three times the amount of commissions paid for
each policy involved in the violation or up to $10,000, whichever is greater.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

No health carrier, as defined in section 62A.011, shall
offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a
Minnesota resident except in compliance with this section. deleted text begin This section does not apply to
the Comprehensive Health Association established in section 62E.10.
deleted text end

Sec. 5.

Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:

Subd. 2.

Guaranteed renewal.

new text begin (a) new text end No individual health plan may be offered, sold,
issued, or renewed to a Minnesota resident unless the health plan provides that the plan is
guaranteed renewable at a premium rate that does not take into account the claims experience
or any change in the health status of any covered person that occurred after the initial issuance
of the health plan to the person. The premium rate upon renewal must also otherwise comply
with this section. A health carrier must not refuse to renew an individual health plan, except
for nonpayment of premiums, fraud, or new text begin intentional new text end misrepresentation new text begin of a material fact new text end .

new text begin (b) A health carrier may elect to discontinue health plan coverage of an individual in
the individual market only, in one or more of the following situations:
new text end

new text begin (1) the health carrier is ceasing to offer individual health plan coverage in the individual
market in accordance with sections 62A.65, subdivision 8, and 62E.11, subdivision 9, and
federal law;
new text end

new text begin (2) for network plans, the individual no longer resides, lives, or works in the service
area of the health carrier, or the area for which the health carrier is authorized to do business,
but only if coverage is terminated uniformly without regard to any health-status-related
factor of covered individuals; or
new text end

new text begin (3) a decision by the health carrier to discontinue offering a particular type of individual
health plan if it meets the following requirements:
new text end

new text begin (i) provides notice in writing to each individual provided coverage of that type of health
plan at least 90 days before the date the coverage is discontinued;
new text end

new text begin (ii) provides notice to the department at least 30 business days before the issuer or health
carrier provides notice to the individuals under item (i);
new text end

new text begin (iii) offers to each covered individual, on a guaranteed issue basis, the option to purchase
any other individual health plan currently being offered by the health carrier or related health
carrier for individuals in that market; and
new text end

new text begin (iv) acts uniformly without regard to any health status-related factor of covered individuals
or dependents of covered individuals who may become eligible for coverage.
new text end

Sec. 6.

Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Uniform modification of plan. new text end

new text begin (a) Only at the time of coverage renewal may
a health carrier modify the health plan for a product, as defined under Code of Federal
Regulations, title 45, section 144.103, offered to an individual in the individual market if
the modification is effective uniformly for all individuals with that product.
new text end

new text begin (b) For purposes of paragraph (a), modifications made uniformly and solely pursuant to
applicable federal or state requirements are considered a uniform modification of coverage
if:
new text end

new text begin (1) the modification is made within a reasonable time period after the imposition or
modification of the federal or state requirement; and
new text end

new text begin (2) the modification is directly related to the imposition or modification of the federal
or state requirement.
new text end

new text begin (c) Other types of modifications made uniformly are considered a uniform modification
of coverage if the health plan for the product in the individual market meets all of the
following criteria:
new text end

new text begin (1) the product is offered by the same health carrier;
new text end

new text begin (2) the product is offered as the same product network type, which includes but is not
limited to a health maintenance organization, preferred provider organization, exclusive
provider organization, point of service, or indemnity;
new text end

new text begin (3) the product continues to cover at least a majority of the same service area;
new text end

new text begin (4) within the product, each health plan has the same cost-sharing structure as before
the modification, except for any variation in cost sharing solely related to changes in cost
and utilization of medical care, or to maintain the same metal level, as defined in section
62K.06, subdivision 4; and
new text end

new text begin (5) the product provides the same covered benefits, except for any changes in benefits
that cumulatively impact the plan-adjusted index rate as defined under Code of Federal
Regulations, title 45, section 144.103, for any health plan within the product within an
allowable variation of plus or minus two percentage points, not including changes pursuant
to applicable federal or state requirements.
new text end

Sec. 7.

Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:

Subd. 2.

Coverage cancellation; nonrenewal.

No health maintenance organization may
cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
for health care coverage; (2) termination of the health care plan new text begin subject to section 62A.65,
subdivisions 2 and 2a new text end ; (3) termination of the group plan; (4) enrollee moving out of the area
served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
62D.104; (6) failure to deleted text begin make co-payments required by deleted text end new text begin pay premiums as provided by the
terms of new text end the health care plan new text begin , including timeliness requirements new text end ; (7) fraud or
misrepresentation by the enrollee with respect to eligibility for coverage or any other material
fact; or (8) other reasons established in rules promulgated by the commissioner of health.

Sec. 8.

Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:

Subd. 2a.

Cancellation or nonrenewal notice.

Enrollees shall be given 30 days' notice
of any cancellation or nonrenewal, except that new text begin : (1) enrollees in a plan terminated under
section 62A.65, subdivisions 2, paragraph (b), clause (3), and 2a, must receive the 90 days'
notice required under section 62A.65, subdivision 2, paragraph (b), clause (3); and (2) new text end
enrollees who are eligible to receive replacement coverage under section 62D.121,
subdivision 1, shall receive 90 days' notice as provided under section 62D.121, subdivision
5.

Sec. 9.

Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:

Subdivision 1.

Replacement coverage.

When membership of an enrollee who has
individual health coverage is terminated by the health maintenance organization for a reason
other than (a) failure to pay the charge for health care coverage; (b) failure to deleted text begin make
co-payments required by deleted text end new text begin pay premiums as provided by the terms of new text end the health care plan new text begin ,
new text end new text begin including timeliness requirements new text end ; (c) enrollee moving out of the area served; or (d) a
materially false statement or misrepresentation by the enrollee in the application for
membership, the health maintenance organization must offer or arrange to offer replacement
coverage, without evidence of insurability, without preexisting condition exclusions, and
without interruption of coverage.

Sec. 10.

Minnesota Statutes 2024, section 62J.26, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given unless the context otherwise requires:

(1) "commissioner" means the commissioner of commerce;

(2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;

(3) "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;

(4) "mandated health benefit proposal" or "proposal" means a proposal that would
statutorily require a health plan company 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; new text begin or
new text end

(iii) provide coverage for care delivered by a specific type of provider; new text begin and
new text end

deleted text begin (iv) require a particular benefit design or impose conditions on cost-sharing for:
deleted text end

deleted text begin (A) the treatment of a particular disease, condition, or other health care need;
deleted text end

deleted text begin (B) a particular type of health care treatment or service; or
deleted text end

deleted 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
deleted text end

deleted text begin (v) impose limits or conditions on a contract between a health plan company and a health
care provider.
deleted text end

new text begin (5) "Minnesota public health care program" means a public health care program
administered by the commissioner of human services under chapters 256B and 256L.
new text end

(b) "Mandated health benefit proposal" does not include health benefit proposals:

(1) amending the scope of practice of a licensed health care professional; deleted text begin or
deleted text end

(2) that make state law consistent with federal law new text begin ; or
new text end

new text begin (3) that apply exclusively to Minnesota public health care programs new text end .

Sec. 11.

Minnesota Statutes 2024, section 62J.26, subdivision 2, is amended to read:

Subd. 2.

Evaluation process and content.

(a) The commissioner, in consultation with
the commissioners of health new text begin , human services, new text end and management and budget, must evaluate
all mandated health benefit proposals as provided under subdivision 3.

(b) The purpose of the evaluation is to provide the legislature with a complete and timely
analysis of all ramifications of any mandated health benefit proposal. The evaluation must
include, in addition to other relevant information, the following to the extent applicable:

(1) scientific and medical information on the mandated health benefit proposal, on the
potential for harm or benefit to the patient, and on the comparative benefit or harm from
alternative forms of treatment, and must include the results of at least one professionally
accepted and controlled trial comparing the medical consequences of the proposed therapy,
alternative therapy, and no therapy;

(2) public health, economic, and fiscal impacts of the mandated health benefit proposal
on persons receiving health services in Minnesota, new text begin on persons receiving health services in
a Minnesota public health care program, new text end on the relative cost-effectiveness of the proposal,
and on the health care system in general;

(3) the extent to which the treatment, service, equipment, or drug is generally utilized
by a significant portion of the population new text begin and used in the Minnesota public health care
programs new text end ;

(4) the extent to which insurance coverage for the mandated health benefit proposal is
already generally available new text begin and available in the Minnesota public health care programs new text end ;

(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 begin and enrollees in the
Minnesota public health care programs new text end ;

(6) the extent to which the mandated health benefit proposal will increase or decrease
the cost of the treatment, service, equipment, or drug;

(7) the extent to which the mandated health benefit proposal may increase enrollee
premiums; and

(8) if the proposal applies to a qualified health plan as defined in section 62A.011,
subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
using commercial market reimbursement rates in accordance with Code of Federal
Regulations, title 45, section 155.170.

(c) The commissioner shall consider actuarial analysis done by health plan companies
and any other proponent or opponent of the mandated health benefit proposal in determining
the cost of the proposal.

(d) The commissioner must summarize the nature and quality of available information
on these issues, and, if possible, must provide preliminary information to the public. The
commissioner may conduct research on these issues or may determine that existing research
is sufficient to meet the informational needs of the legislature. The commissioner may seek
the assistance and advice of researchers, community leaders, or other persons or organizations
with relevant expertise. The commissioner must provide the public with at least 45 days'
notice when requesting information pursuant to this section. The commissioner must notify
the chief authors of a bill when a request for information is issued.

(e) Information submitted to the commissioner pursuant to this section that meets the
definition of trade secret information, as defined in section 13.37, subdivision 1, paragraph
(b), is nonpublic data.

new text begin (f) The commissioner must publish all evaluations conducted under this section on a
publicly available website within 30 days of the evaluation's completion.
new text end

Sec. 12.

Minnesota Statutes 2024, section 62J.26, subdivision 3, is amended to read:

Subd. 3.

Requirements for evaluation.

(a) No later than August 1 of the year preceding
the legislative session in which deleted text begin a deleted text end new text begin an incumbent new text end legislator is planning on introducing a bill
containing a mandated health benefit proposal deleted text begin , deleted text end 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, the chair must notify the
commissioner that an evaluation of a mandated health benefit proposal is required to be
completed in accordance with this section in order to inform the legislature before any action
is taken on the proposal 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 required under paragraph (a).

(c) If the evaluation of multiple proposals are required, 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 evaluations and establish
a reporting date for each proposal to be evaluated.

new text begin (d) By December 31 of the year in which a mandated health benefit proposal, for which
an evaluation described in subdivision 2 has not been conducted, is enacted, the commissioner
must conduct an evaluation described in subdivision 2. The evaluation required by this
paragraph applies to mandated health benefit proposals:
new text end

new text begin (1) introduced or offered by a legislator who was not seated by the deadline for
notification under paragraph (a);
new text end

new text begin (2) enacted without conformity to paragraph (a); or
new text end

new text begin (3) for which an evaluation was required under paragraph (b) but was not conducted.
new text end

Sec. 13.

Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Conformity. new text end

new text begin A mandated health benefit proposal enacted into law is effective
whether or not it is in conformity with this section.
new text end

Sec. 14.

Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Adoption of forms. new text end

new text begin (a) The commissioner of commerce must adopt forms, by
July 1, 2026, for the following:
new text end

new text begin (1) an incumbent legislator to notify the chair of the mandated health benefit proposal
under subdivision 3, paragraph (a); and
new text end

new text begin (2) the chair to notify the commissioner of the mandated health benefit proposal under
subdivision 3, paragraph (a).
new text end

new text begin (b) The forms adopted under this subdivision must include all information needed from
the legislator introducing or offering the mandated health benefit proposal for the
commissioner to conduct the required evaluation.
new text end

Sec. 15.

Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:

Subd. 4.

Contract.

Pursuant to a request for proposal, deleted text begin the commissioner of administration,
in consultation with deleted text end the commissioners of health and commerce deleted text begin , shall deleted text end new text begin must new text end contract with
deleted text begin at least three organizations deleted text end new text begin more than one organization new text end or business deleted text begin entities deleted text end new text begin entity new text end to provide
independent external reviews of all adverse determinations submitted for external review.
The contract deleted text begin shall deleted text end new text begin must new text end ensure that the fees for services rendered in connection with the
reviews are reasonable.

ARTICLE 4

GENERAL INSURANCE

Section 1.

Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:

Subdivision 1.

General powers.

new text begin (a) new text end In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:

(1) make public or private investigations within or without this state as the commissioner
considers necessary to determine whether any person has violated or is about to violate any
law, rule, or order related to the duties and responsibilities entrusted to the commissioner;

(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the matter
being investigated;

(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;

(4) conduct investigations and hold hearings for the purpose of compiling information
related to the duties and responsibilities entrusted to the commissioner;

(5) examine the books, accounts, records, and files of every licensee, and of every person
who is engaged in any activity regulated; the commissioner or a designated representative
shall have free access during normal business hours to the offices and places of business of
the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
in the place of business;

(6) publish information which is contained in any order issued by the commissioner;

(7) require any person subject to duties and responsibilities entrusted to the commissioner,
to report all sales or transactions that are regulated. The reports must be made within ten
days after the commissioner has ordered the report. The report is accessible only to the
respondent and other governmental agencies unless otherwise ordered by a court of competent
jurisdiction; deleted text begin and
deleted text end

(8) assess a natural person or entity subject to the jurisdiction of the commissioner the
necessary expenses of the investigation performed by the department when an investigation
is made by order of the commissioner. The cost of the investigation shall be determined by
the commissioner and is based on the salary cost of investigators or assistants and at an
average rate per day or fraction thereof so as to provide for the total cost of the investigation.
All money collected must be deposited into the general fund. A natural person or entity
licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
investigation results in no finding of a violation. This clause does not apply to a natural
person or entity already subject to the assessment provisions of sections 60A.03 and
60A.031 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) issue data calls.
new text end

new text begin (b) For purposes of this section, "data call" means a written request from the
commissioner to two or more companies or persons subject to the commissioner's jurisdiction
to provide data or other information within a reasonable time period for a targeted regulatory
oversight purpose. A data call is not market analysis, as defined under section 60A.031,
subdivision 4, paragraph (f), and is not subject to section 60A.033.
new text end

Sec. 2.

Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Data calls. new text end

new text begin (a) Information provided in response to a data call issued by the
commissioner or the commissioner's authorized representative: (1) must be treated as
nonpublic data, as defined under section 13.02, subdivision 9; and (2) is not subject to
subpoena. The commissioner may create and make public summary data derived from data
classified as nonpublic under this paragraph.
new text end

new text begin (b) The commissioner may grant access to data submitted by insurers in response to a
data call issued by the commissioner or the commissioner's authorized representative to the
National Association of Insurance Commissioners (NAIC) if NAIC agrees in writing to
hold the data as nonpublic data.
new text end

Sec. 3.

Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:

Subd. 2.

Power to compel production of evidence.

For the purpose of any investigation,
hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
commissioner, the commissioner or a designated representative may new text begin issue data calls, new text end
administer oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers, correspondence, memoranda,
agreements, or other documents or records that the commissioner considers relevant or
material to the inquiry.

A subpoena issued pursuant to this subdivision must state that the person to whom the
subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
the requested records have been given to law enforcement personnel except:

(1) insofar as the disclosure is necessary to find and disclose the records; or

(2) pursuant to court order.

Sec. 4.

Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:

Subd. 4a.

Maximum interest rate.

(a) No conventional or cooperative apartment loan
or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
lawful interest rate in an amount equal to the deleted text begin Federal National Mortgage Association posted
yields on 30-year mortgage commitments for delivery within 60 days on standard
conventional fixed-rate mortgages published in the Wall Street Journal for the last business
day of the second preceding month deleted text end new text begin average prime offer rate, as defined in Code of Federal
Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
recently published by the United States Consumer Financial Protection Bureau on the last
date the discounted interest rate for the transaction is set before consummation, new text end plus four
percentage points. new text begin If the index is not available, a substitute index may be adopted by a
commissioner order.
new text end

(b) The maximum lawful interest rate applicable to a cooperative apartment loan or
contract for deed at the time the loan or contract is made is the maximum lawful interest
rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
the provisions of section 334.01, a cooperative apartment loan or contract for deed may
provide, at the time the loan or contract is made, for the application of specified different
consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
the maximum lawful interest rate applicable to the loan or contract at the time the loan or
contract is made.

(c) The maximum interest rate that can be charged on a conventional loan or a contract
for deed, with a duration of ten years or less, for the purchase of real estate described in
section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
under paragraph (a) or 15.75 percent per year, whichever is less. deleted text begin This paragraph is effective
August 1, 1992.
deleted text end

(d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
conventional or cooperative apartment loans made pursuant to a borrower's interest rate
commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
commitment for conventional or cooperative apartment loans made upon payment of a
forward commitment fee including a borrower's loan commitment issued pursuant to a
forward commitment, which commitment provides for consummation within some future
time following the issuance of the commitment may be consummated pursuant to the
provisions, including the interest rate, of the commitment notwithstanding the fact that the
maximum lawful rate of interest at the time the contract for deed or conventional or
cooperative apartment loan is actually executed or made is less than the commitment rate
of interest, provided the commitment rate of interest does not exceed the maximum lawful
interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
the secretary of housing and urban development, the administrator of veterans affairs, or
the administrator of the Farmers Home Administration, or (3) a contract for deed by making
a conventional or cooperative apartment loan is deemed to be a new conventional or
cooperative apartment loan for purposes of determining the maximum lawful rate of interest
under this subdivision. The renegotiation of a conventional or cooperative apartment loan
or a contract for deed is deemed to be a new loan or contract for deed for purposes of
paragraph (b) and for purposes of determining the maximum lawful rate of interest under
this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
is deemed to be issued on the date the commitment is hand delivered by the lender to, or
mailed to the borrower. A forward commitment is deemed to be issued on the date the
forward commitment is hand delivered by the lender to, or mailed to the person paying the
forward commitment fee to the lender, or to any one of them if there should be more than
one. A commitment for a contract for deed is deemed to be issued on the date the commitment
is initially executed by the contract for deed vendor or the vendor's authorized agent.

(e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
borrower's loan commitment, or made pursuant to a forward commitment for conventional
or cooperative apartment loans made upon payment of a forward commitment fee including
a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
not in excess of the rate of interest authorized by this subdivision at the time the commitment
was made continues to be enforceable in accordance with its terms until the indebtedness
is fully satisfied.

Sec. 5.

Minnesota Statutes 2024, section 60A.201, subdivision 2, is amended to read:

Subd. 2.

Availability of other coverage; presumption.

There shall be a rebuttable
presumption that the following coverages are available from a licensed insurer:

deleted text begin (a) deleted text end new text begin (1) new text end all mandatory automobile insurance coverages required by chapter 65B;

deleted text begin (b) deleted text end new text begin (2) new text end private passenger automobile physical damage coverage;

deleted text begin (c) deleted text end new text begin (3) new text end homeowners and property insurance on owner-occupied dwellings whose value
is less than $500,000 deleted text begin . This figure shall be changed annually by the commissioner by the
same percentage as the Consumer Price Index for the Minneapolis-St. Paul Metropolitan
Area is changed deleted text end ;

deleted text begin (d) deleted text end new text begin (4) new text end any coverage readily available from three or more licensed insurers unless the
licensed insurers quote a premium and terms not competitive with a premium and terms
quoted by an eligible surplus lines insurer; and

deleted text begin (e) deleted text end new text begin (5) new text end workers' compensation insurance, except excess workers' compensation insurance
which is not available from the Workers' Compensation Reinsurance Association.

Sec. 6.

Minnesota Statutes 2024, section 60A.201, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin FAIR plan coverage; notice. new text end

new text begin If the insurance placed by the surplus lines broker
with a nonadmitted insurer is homeowners or property insurance on an owner-occupied
dwelling, the broker must print, type, or stamp in not less than ten-point type on the face of
the policy the following notice: "YOU MAY BE ELIGIBLE FOR COVERAGE THROUGH
THE MINNESOTA FAIR PLAN, WHICH MAKES AVAILABLE PROPERTY AND
LIABILITY COVERAGE, AS DEFINED BY THE MINNESOTA FAIR PLAN ACT, TO
QUALIFIED APPLICANTS WHO HAVE BEEN UNABLE TO SECURE PROPERTY
AND LIABILITY INSURANCE THROUGH THE NORMAL INSURANCE MARKETS."
The notice under this subdivision must not be covered or concealed in any manner, and is
in addition to the notice required under section 60A.207 or 60A.209.
new text end

Sec. 7.

Minnesota Statutes 2024, section 60C.09, subdivision 2, is amended to read:

Subd. 2.

Further definition.

In addition to subdivision 1, a covered claim does not
include:

(1) claims by an affiliate of the insurer;

(2) claims due a reinsurer, insurer, insurance pool, or underwriting association, as
subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise.
This clause does not prevent a person from presenting the excluded claim to the insolvent
insurer or its liquidator, but the claims shall not be asserted against another person, including
the person to whom the benefits were paid or the insured of the insolvent insurer, except to
the extent that the claim is outside the coverage of the policy issued by the insolvent insurer;
deleted text begin and
deleted text end

(3) any claims, resulting from insolvencies which occur after July 31, 1996, by an insured
whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which
the insurer becomes an insolvent insurer; provided that an insured's net worth on that date
shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries
and affiliates as calculated on a consolidated basis new text begin . The association may request financial
information from an insured to determine the insured's net worth under this clause. If an
insured fails to provide the requested financial information within 60 days of the date the
association submits a request, the insured's net worth is deemed to exceed $25,000,000 for
purposes of the association's evaluation of the claim under section 60C.10. A request by
the association to an insured seeking financial information under this clause must inform
the insured of the consequences of failing to provide the requested information new text end ;

(4) any claims under a policy written by an insolvent insurer with a deductible or
self-insured retention of $300,000 or more, nor that portion of a claim that is within an
insured's deductible or self-insured retention; new text begin and
new text end

(5) claims that are a fine, penalty, interest, or punitive or exemplary damages.

Sec. 8.

Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Other violations. new text end

new text begin If the commissioner believes a person has committed a
violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
insurer by affiliates or by the insurance holding company system, the violation may serve
as an independent basis for disapproving dividends or distributions and for placing the
insurer under an order of supervision under chapter 60B.
new text end

Sec. 9.

Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:

Subd. 4.

Control.

The term "control," including the terms "controlling," "controlled
by," and "under common control with," means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a person, whether
through the ownership of voting securities, by contract other than a commercial contract
for goods or nonmanagement services, or otherwise, unless the power is the result of an
official position with deleted text begin , deleted text end new text begin or new text end corporate office held by deleted text begin , or court appointment of, deleted text end the person.
Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
the power to vote, or holds proxies representing, ten percent or more of the voting securities
of any other person. This presumption may be rebutted by a showing made in the manner
provided by section 60D.19, subdivision 11, that control does not exist in fact. The
commissioner may determine, after furnishing all persons in interest notice and opportunity
to be heard and making specific findings of fact to support deleted text begin such deleted text end new text begin the new text end determination, that
control exists in fact, notwithstanding the absence of a presumption to that effect.

Sec. 10.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 4c. new text end

new text begin Group capital calculation instructions. new text end

new text begin "Group capital calculation
instructions" means the group capital calculation instructions adopted by the NAIC and as
amended by the NAIC from time to time in accordance with procedures adopted by the
NAIC.
new text end

Sec. 11.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 6b. new text end

new text begin NAIC. new text end

new text begin "NAIC" means the National Association of Insurance Commissioners.
new text end

Sec. 12.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 6c. new text end

new text begin NAIC liquidity stress test framework. new text end

new text begin "NAIC liquidity stress test framework"
means a NAIC publication which includes a history of the NAIC's development of regulatory
liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity
stress test instructions and reporting templates for a specific data year, scope criteria,
instructions, and reporting template being adopted by the NAIC, and as amended by the
NAIC from time to time in accordance with the procedures adopted by the NAIC.
new text end

Sec. 13.

Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:

Subd. 7.

Person.

A "person" is an individual, a corporation, new text begin a limited liability company, new text end
a partnership, an association, a joint stock company, a trust, an unincorporated organization,
any similar entity or any combination of the foregoing acting in concert, but does not include
any joint venture partnership exclusively engaged in owning, managing, leasing, or
developing real or tangible personal property.

Sec. 14.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Scope criteria. new text end

new text begin "Scope criteria," as detailed in the NAIC liquidity stress test
framework, means the designated exposure bases along with minimum magnitudes of the
designated exposure bases for the specified data year that are used to establish a preliminary
list of insurers considered scoped into the NAIC liquidity stress test framework for that data
year.
new text end

Sec. 15.

Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

In addition to investments in common stock,
preferred stock, debt obligations, and other securities otherwise permitted new text begin under this chapter new text end ,
a domestic insurer may also:

(a) Invest, in common stock, preferred stock, debt obligations, and other securities of
one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
investments, the insurer's surplus as regards policyholders deleted text begin will be deleted text end new text begin is new text end reasonable in relation
to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
amount of these investments, investments in domestic or foreign insurance subsidiaries new text begin and
health maintenance organizations new text end must be excluded, and there must be included:

(1) total net money or other consideration expended and obligations assumed in the
acquisition or formation of a subsidiary, including all organizational expenses and
contributions to capital and surplus of the subsidiary whether or not represented by the
purchase of capital stock or issuance of other securities; and

(2) all amounts expended in acquiring additional common stock, preferred stock, debt
obligations, and other securities new text begin ; new text end and all contributions to the capital or surplus deleted text begin , deleted text end of a subsidiary
subsequent to its acquisition or formation.

(b) Invest any amount in common stock, preferred stock, debt obligations, and other
securities of one or more subsidiaries engaged or organized to engage exclusively in the
ownership and management of assets authorized as investments for the insurer provided
that the subsidiary agrees to limit its investments in any asset so that the investments deleted text begin will deleted text end new text begin
do new text end not cause the amount of the total investment of the insurer to exceed any of the investment
limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
purpose of this paragraph, "the total investment of the insurer" includes:

(1) any direct investment by the insurer in an asset; and

(2) the insurer's proportionate share of any investment in an asset by any subsidiary of
the insurer, which must be calculated by multiplying the amount of the subsidiary's
investment by the percentage of the ownership of the subsidiary.

(c) With the approval of the commissioner, invest any greater amount in common stock,
preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
investment the insurer's surplus as regards policyholders deleted text begin will be deleted text end new text begin is new text end reasonable in relation to
the insurer's outstanding liabilities and adequate to its financial needs.

Sec. 16.

Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:

Subdivision 1.

Filing requirements.

(a) No person other than the issuer shall: (1) make
a tender offer for or a request or invitation for tenders of, or enter into any agreement to
exchange securities deleted text begin or deleted text end new text begin for new text end , seek to acquire, or acquire, in the open market or otherwise, any
voting security of a domestic insurer if, after the consummation thereof, the person would,
directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
of a domestic insurer or any person controlling a domestic insurer unless, at the time the
offer, request, or invitation is made or the agreement is entered into, or before the acquisition
of the securities if no offer or agreement is involved, the person has filed with the
commissioner and has sent to the insurer, a statement containing the information required
by this section and the offer, request, invitation, agreement, or acquisition has been approved
by the commissioner in the manner prescribed in this section.

(b) For purposes of this section, a controlling person of a domestic insurer seeking to
divest its controlling interest in the domestic insurer, in any manner, shall file with the
commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
least 30 days before the cessation of control. The commissioner shall determine those
instances in which the party or parties seeking to divest or to acquire a controlling interest
in an insurer will be required to file for and obtain approval of the transaction. new text begin The
information must remain confidential until the conclusion of the transaction unless the
commissioner, in the commissioner's discretion, determines that confidential treatment
interferes with the enforcement of this section. This paragraph does not apply if the statement
referred to in paragraph (a) is otherwise filed.
new text end

(c) With respect to a transaction subject to this section, the acquiring person must also
file a preacquisition notification with the commissioner, which must contain the information
set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
may be subject to penalties specified in section 60D.18, subdivision 5.

(d) For purposes of this section, a domestic insurer includes a person controlling a
domestic insurer unless the person new text begin , new text end as determined by the commissioner new text begin , new text end is either directly
or through its affiliates primarily engaged in business other than the business of insurance.
For the purposes of this section, "person" does not include any securities broker holding,
in the usual and customary deleted text begin brokers deleted text end new text begin broker's new text end function, less than 20 percent of the voting
securities of an insurance company or of any person that controls an insurance company.

deleted text begin (e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
remain confidential until the transaction is approved by the commissioner, except that all
attachments filed with the statement remain confidential after the approval unless the
commissioner, in the commissioner's discretion, determines that confidential treatment of
any of this information will interfere with enforcement of this section.
deleted text end

Sec. 17.

Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:

Subd. 3.

Preacquisition notification; waiting period.

(a) An acquisition covered by
subdivision 2 may be subject to an order pursuant to subdivision deleted text begin 4 deleted text end new text begin 5 new text end unless the acquiring
person files a preacquisition notification and the waiting period has expired. The acquired
person may file a preacquisition notification. The commissioner shall give confidential
treatment to information submitted under this section in the same manner as provided in
section 60D.22.

(b) The preacquisition notification must be in the form and contain the information as
prescribed by the National Association of Insurance Commissioners relating to those markets
that, under subdivision 2, paragraph (b), clause deleted text begin (5) deleted text end new text begin (4) new text end , cause the acquisition not to be
exempted from the provisions of this section. The commissioner may require deleted text begin the deleted text end additional
material and information as the commissioner deems necessary to determine whether the
proposed acquisition, if consummated, would violate the competitive standard of subdivision
4. The required information may include an opinion of an economist as to the competitive
impact of the acquisition in this state accompanied by a summary of the education and
experience of the person indicating that person's ability to render an informed opinion.

(c) The waiting period required begins on the date of receipt of the commissioner of a
preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
or termination of the waiting period by the commissioner. Before the end of the waiting
period, the commissioner on a onetime basis may require the submission of additional
needed information relevant to the proposed acquisition, in which event the waiting period
shall end on the earlier of the 30th day after receipt of the additional information by the
commissioner or termination of the waiting period by the commissioner.

Sec. 18.

Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:

Subd. 4.

Materiality.

No information need be disclosed on the registration statement
filed pursuant to subdivision 2 if the information is not material for the purposes of this
section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
one percent or less of an insurer's admitted assets as of the 31st day of December next
preceding shall not be deemed material for purposes of this section. new text begin The definition of
materiality provided in this subdivision does not apply for purposes of the group capital
calculation or the NAIC liquidity stress test framework.
new text end

Sec. 19.

Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:

new text begin Subd. 11b. new text end

new text begin Group capital calculation. new text end

new text begin (a) Except as otherwise provided in this paragraph,
the ultimate controlling person of every insurer subject to registration must concurrently
file with the registration an annual group capital calculation as directed by the lead state
insurance commissioner. The report must be completed in accordance with the NAIC group
capital calculation instructions, which may permit the lead state insurance commissioner
to allow a controlling person that is not the ultimate controlling person to file the group
capital calculation. The report must be filed with the lead state insurance commissioner of
the insurance holding company system, as determined by the commissioner in accordance
with the procedures within the Financial Analysis Handbook adopted by the NAIC. The
following insurance holding company systems are exempt from filing the group capital
calculation:
new text end

new text begin (1) an insurance holding company system that (i) has only one insurer within the insurance
holding company system's holding company structure, (ii) only writes business and is only
licensed in the insurance holding company system's domestic state, and (iii) assumes no
business from any other insurer;
new text end

new text begin (2) an insurance holding company system that is required to perform a group capital
calculation specified by the United States Federal Reserve Board. The lead state insurance
commissioner must request the calculation from the Federal Reserve Board under the terms
of information sharing agreements in effect. If the Federal Reserve Board is unable to share
the calculation with the lead state insurance commissioner, the insurance holding company
system is not exempt from the group capital calculation filing;
new text end

new text begin (3) an insurance holding company system whose non-United States groupwide supervisor
is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
that recognizes the United States state regulatory approach to group supervision and group
capital; or
new text end

new text begin (4) an insurance holding company system:
new text end

new text begin (i) that provides information to the lead state insurance commissioner that meets the
requirements for accreditation under the NAIC financial standards and accreditation program,
either directly or indirectly through the groupwide supervisor, that has determined the
information is satisfactory to allow the lead state insurance commissioner to comply with
the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook;
and
new text end

new text begin (ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
recognizes and accepts, as specified by the commissioner in an administrative rule, the
group capital calculation as the worldwide group capital assessment for United States
insurance groups that operate in that jurisdiction.
new text end

new text begin (b) Notwithstanding paragraph (a), clauses (3) and (4), a lead state insurance
commissioner must require the group capital calculation for the United States operations
of any non-United States based insurance holding company system where, after any necessary
consultation with other supervisors or officials, requiring the group capital calculation is
deemed appropriate by the lead state insurance commissioner for prudential oversight and
solvency monitoring purposes or for ensuring the competitiveness of the insurance
marketplace.
new text end

new text begin (c) Notwithstanding the exemptions from filing the group capital calculation under
paragraph (a), the lead state insurance commissioner may exempt the ultimate controlling
person from filing the annual group capital calculation or accept a limited group capital
filing or report in accordance with criteria specified by the commissioner in an administrative
rule.
new text end

new text begin (d) If the lead state insurance commissioner determines that an insurance holding company
system no longer meets one or more of the requirements for an exemption from filing the
group capital calculation under this subdivision, the insurance holding company system
must file the group capital calculation at the next annual filing date unless given an extension
by the lead state insurance commissioner based on reasonable grounds shown.
new text end

Sec. 20.

Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:

new text begin Subd. 11c. new text end

new text begin Liquidity stress test. new text end

new text begin (a) The ultimate controlling person of every insurer
subject to registration and also scoped into the NAIC liquidity stress test framework must
file the results of a specific year's liquidity stress test. The filing must be made to the lead
state insurance commissioner of the insurance holding company system, as determined by
the procedures within the Financial Analysis Handbook adopted by the NAIC.
new text end

new text begin (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
specific data year. The scope criteria must be reviewed at least annually by the NAIC
Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
change made to the NAIC liquidity stress test framework or to the data year for which the
scope criteria must be measured is effective January 1 of the year following the calendar
year in which the change is adopted. An insurer meeting at least one threshold of the scope
criteria is scoped into the NAIC liquidity stress test framework for the specified data year
unless the lead state insurance commissioner, in consultation with the NAIC Financial
Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
the insurer should not be scoped into the framework for that data year. An insurer that does
not trigger at least one threshold of the scope criteria is scoped out of the NAIC liquidity
stress test framework for the specified data year unless the lead state insurance commissioner,
in consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
Task Force's successor, determines the insurer should be scoped into the framework for the
specified data year.
new text end

new text begin (c) The commissioner and other state insurance commissioners must avoid scoping
insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The lead
state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
or the NAIC Financial Stability Task Force's successor, must assess irregular scope status
as part of an insurer's determination.
new text end

new text begin (d) The performance of and filing of the results from a specific year's liquidity stress
test must comply with (1) the NAIC liquidity stress test framework's instructions and
reporting templates for the specific year, and (2) any lead state insurance commissioner
determinations, in consultation with the NAIC Financial Stability Task Force or the NAIC
Financial Stability Task Force's successor, provided within the framework.
new text end

Sec. 21.

new text begin [60D.195] GROUP CAPITAL CALCULATION.
new text end

new text begin Subdivision 1. new text end

new text begin Annual group capital calculation; exemption permitted. new text end

new text begin The lead
state insurance commissioner may exempt the ultimate controlling person from filing the
annual group capital calculation if the lead state insurance commissioner makes a
determination that the insurance holding company system meets the following criteria:
new text end

new text begin (1) has annual direct written and unaffiliated assumed premium, including international
direct and assumed premium but excluding premiums reinsured with the Federal Crop
Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
new text end

new text begin (2) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end

new text begin (3) has no banking, depository, or other financial entity that is subject to an identified
regulatory capital framework within the insurance holding company's structure;
new text end

new text begin (4) attests that no material changes in the transactions between insurers and noninsurers
in the group have occurred since the last annual group capital filing; and
new text end

new text begin (5) the noninsurers within the holding company system do not pose a material financial
risk to the insurer's ability to honor policyholder obligations.
new text end

new text begin Subd. 2. new text end

new text begin Limited group capital filing. new text end

new text begin The lead state insurance commissioner may
accept a limited group capital filing in lieu of the group capital calculation if:
new text end

new text begin (1) the insurance holding company system has annual direct written and unaffiliated
assumed premium, including international direct and assumed premium but excluding
premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
of less than $1,000,000,000; and
new text end

new text begin (2) the insurance holding company system:
new text end

new text begin (i) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end

new text begin (ii) does not include a banking, depository, or other financial entity that is subject to an
identified regulatory capital framework; and
new text end

new text begin (iii) attests that no material changes in transactions between insurers and noninsurers in
the group have occurred and the noninsurers within the holding company system do not
pose a material financial risk to the insurer's ability to honor policyholder obligations.
new text end

new text begin Subd. 3. new text end

new text begin Previous exemption; required filing. new text end

new text begin For an insurance holding company that
has previously met an exemption with respect to the group capital calculation under
subdivision 1 or 2, the lead state insurance commissioner may at any time require the ultimate
controlling person to file an annual group capital calculation, completed in accordance with
the NAIC group capital calculation instructions, if:
new text end

new text begin (1) an insurer within the insurance holding company system is in a risk-based capital
action level event under section 60A.62 or a similar standard for a non-United States insurer;
new text end

new text begin (2) an insurer within the insurance holding company system meets one or more of the
standards of an insurer deemed to be in hazardous financial condition, as defined under
section 60E.02, subdivision 5; or
new text end

new text begin (3) an insurer within the insurance holding company system otherwise exhibits qualities
of a troubled insurer, as determined by the lead state insurance commissioner based on
unique circumstances, including but not limited to the type and volume of business written,
ownership and organizational structure, federal agency requests, and international supervisor
requests.
new text end

new text begin Subd. 4. new text end

new text begin Non-United States jurisdictions; recognition and acceptance. new text end

new text begin A non-United
States jurisdiction is deemed to recognize and accept the group capital calculation if the
non-United States jurisdiction:
new text end

new text begin (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
new text end

new text begin (i) recognizes the United States state regulatory approach to group supervision and group
capital by providing confirmation by a competent regulatory authority in the non-United
States jurisdiction that insurers and insurance groups whose lead state is accredited by the
NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
insurance group supervision, including worldwide group governance, solvency and capital,
and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
including worldwide group governance, solvency and capital, and reporting, at the level of
the worldwide parent undertaking of the insurance or reinsurance group by the non-United
States jurisdiction; or
new text end

new text begin (ii) if no United States insurance group operates in the non-United States jurisdiction,
indicates formally in writing to the lead state with a copy to the International Association
of Insurance Supervisors that the group capital calculation is an acceptable international
capital standard. The formal indication under this item serves as the documentation otherwise
required under item (i); and
new text end

new text begin (2) provides confirmation by a competent regulatory authority in the non-United States
jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
affiliated entities, if applicable, must be provided to the lead state insurance commissioner
in accordance with a memorandum of understanding or similar document between the
commissioner and the non-United States jurisdiction, including but not limited to the
International Association of Insurance Supervisors Multilateral Memorandum of
Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
The commissioner must determine, in consultation with the NAIC committee process, if
the information sharing agreement requirements are effective.
new text end

new text begin Subd. 5. new text end

new text begin Non-United States jurisdiction; publication. new text end

new text begin (a) A list of non-United States
jurisdictions that recognize and accept the group capital calculation under section 60D.19,
subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
process to assist the lead state insurance commissioner determine what insurers must file
an annual group capital calculation. The list must clarify the situations in which a jurisdiction
is exempt from filing under section 60D.19, subdivision 11b, paragraph (a), clause (4). To
assist with a determination under section 60D.19, subdivision 11b, paragraph (b), the list
must also identify whether a jurisdiction that is exempt under section 60D.19, subdivision
11b, paragraph (a), clause (3) or (4), requires a group capital filing for any United States
insurance group's operations in the non-United States jurisdiction.
new text end

new text begin (b) For a non-United States jurisdiction where no United States insurance group operates,
the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
support for a recommendation to be published that the non-United States jurisdiction is a
jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
committee process.
new text end

new text begin (c) If the lead state insurance commissioner makes a determination pursuant to section
60D.19, subdivision 11b, that differs from the NAIC list, the lead state insurance
commissioner must provide thoroughly documented justification to the NAIC and other
states.
new text end

new text begin (d) Upon a determination by the lead state insurance commissioner that a non-United
States jurisdiction no longer meets one or more of the requirements to recognize and accept
the group capital calculation, the lead state insurance commissioner may provide a
recommendation to the NAIC that the non-United States jurisdiction be removed from the
list of jurisdictions that recognize and accept the group capital calculation.
new text end

Sec. 22.

Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:

Subdivision 1.

Transactions within an insurance holding company system.

(a)
Transactions within an insurance holding company system to which an insurer subject to
registration is a party are subject to the following standards:

(1) the terms shall be fair and reasonable;

(2) agreements for cost-sharing services and management shall include the provisions
required by rule issued by the commissioner;

(3) charges or fees for services performed shall be reasonable;

(4) expenses incurred and payment received shall be allocated to the insurer in conformity
with customary insurance accounting practices consistently applied;

(5) the books, accounts, and records of each party to all such transactions shall be so
maintained as to clearly and accurately disclose the nature and details of the transactions
including this accounting information as is necessary to support the reasonableness of the
charges or fees to the respective parties; deleted text begin and
deleted text end

(6) the insurer's surplus as regards policyholders following any dividends or distributions
to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
and adequate to its financial needs deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
may require the insurer to secure and maintain either a deposit, held by the commissioner,
or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
the duration of the contract, agreement, or the existence of the condition for which the
commissioner required the deposit or bond. When determining whether a deposit or bond
is required, the commissioner must consider whether concerns exist with respect to the
affiliated person's ability to fulfill the contract or agreement if the insurer entered into
liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
that would be grounds for supervision, conservation, or a delinquency proceeding, and a
deposit or bond is necessary, the commissioner may determine the amount of the deposit
or bond, not to exceed the value of the contract or agreement in any one year, and whether
the deposit or bond is required for a single contract, multiple contracts, or a contract only
with a specific person or persons;
new text end

new text begin (8) all of an insurer's records and data held by an affiliate are and remain the property
of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
readily capable of segregation, at no additional cost to the insurer, from all other persons'
records and data. For purposes of this clause, records and data include all records and data
that are otherwise the property of the insurer in whatever form maintained, including but
not limited to claims and claim files, policyholder lists, application files, litigation files,
premium records, rate books, underwriting manuals, personnel records, financial records,
or similar records within the affiliate's possession, custody, or control. At the request of the
insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
on which the data are maintained, (iii) obtain the software that runs the operating systems
either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
must provide a waiver of any landlord lien or other encumbrance to provide the insurer
access to all records and data in the event the affiliate defaults under a lease or other
agreement; and
new text end

new text begin (9) premiums or other funds belonging to the insurer that are collected or held by an
affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
Any right of offset in the event an insurer is placed into receivership is subject to chapter
576.
new text end

(b) The following transactions involving a domestic insurer and any person in its
insurance holding company system, including amendments or modifications of affiliate
agreements previously filed pursuant to this section, which are subject to any materiality
standards contained in clauses (1) to (7), may not be entered into unless the insurer has
notified the commissioner in writing of its intention to enter into the transaction at least 30
days prior thereto, or a shorter period the commissioner permits, and the commissioner has
not disapproved it within this period. The notice for amendments or modifications must
include the reasons for the change and the financial impact on the domestic insurer. Informal
notice must be reported, within 30 days after a termination of a previously filed agreement,
to the commissioner for determination of the type of filing required, if any:

(1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
each as of the 31st day of December next preceding;

(2) loans or extensions of credit to any person who is not an affiliate, where the insurer
makes the loans or extensions of credit with the agreement or understanding that the proceeds
of the transactions, in whole or in substantial part, are to be used to make loans or extensions
of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
making such loans or extensions of credit provided the transactions are equal to or exceed:
(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
percent of the insurer's admitted assets; each as of the 31st day of December next preceding;

(3) reinsurance agreements or modifications to those agreements, including: (i) all
reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
insurer's liabilities in any of the next three years, equals or exceeds five percent of the
insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
including those agreements which may require as consideration the transfer of assets from
an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
nonaffiliate that any portion of deleted text begin such deleted text end new text begin the new text end assets will be transferred to one or more affiliates
of the insurer;

(4) all management agreements, service contracts, tax allocation agreements, guarantees,
and all cost-sharing arrangements;

(5) guarantees when made by a domestic insurer; provided, however, that a guarantee
which is quantifiable as to amount is not subject to the notice requirements of this paragraph
unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
percent of surplus as regards policyholders as of the 31st day of December next preceding.
Further, all guarantees which are not quantifiable as to amount are subject to the notice
requirements of this paragraph;

(6) direct or indirect acquisitions or investments in a person that controls the insurer or
in an affiliate of the insurer in an amount which, together with its present holdings in the
investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, new text begin as otherwise
authorized under this chapter, new text end or in nonsubsidiary insurance affiliates that are subject to the
provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and

(7) any material transactions, specified by regulation, which the commissioner determines
may adversely affect the interests of the insurer's policyholders.

Nothing contained in this section authorizes or permits any transactions that, in the case
of an insurer not a member of the same insurance holding company system, would be
otherwise contrary to law.

(c) A domestic insurer may not enter into transactions which are part of a plan or series
of like transactions with persons within the insurance holding company system if the purpose
of those separate transactions is to avoid the statutory threshold amount and thus avoid the
review that would occur otherwise. If the commissioner determines that the separate
transactions were entered into over any 12-month period for the purpose, the commissioner
may exercise the authority under section 60D.25.

(d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
whether the transactions comply with the standards set forth in paragraph (a), and whether
they may adversely affect the interests of policyholders.

(e) The commissioner shall be notified within 30 days of any investment of the domestic
insurer in any one corporation if the total investment in the corporation by the insurance
holding company system exceeds ten percent of the corporation's voting securities.

new text begin (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
conservatorship, or receivership proceedings against the insurer and to the authority of a
supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
obligations under the agreement or contract to perform services for the insurer that are: (1)
an integral part of the insurer's operations, including but not limited to management,
administrative, accounting, data processing, marketing, underwriting, claims handling,
investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
the insurer's obligations under insurance policies. The commissioner may require that an
agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
under this paragraph.
new text end

Sec. 23.

Minnesota Statutes 2024, section 60D.217, is amended to read:

60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
INSURANCE GROUPS.

(a) The commissioner is authorized to act as the groupwide supervisor for any
internationally active insurance group in accordance with the provisions of this section.
However, the commissioner may otherwise acknowledge another regulatory official as the
groupwide supervisor where the internationally active insurance group:

(1) does not have substantial insurance operations in the United States;

(2) has substantial insurance operations in the United States, but not in this state; or

(3) has substantial insurance operations in the United States and this state, but the
commissioner has determined pursuant to the factors set forth in deleted text begin subsections deleted text end new text begin paragraphs new text end (b)
and (f) that the other regulatory official is the appropriate groupwide supervisor.

An insurance holding company system that does not otherwise qualify as an internationally
active insurance group may request that the commissioner make a determination or
acknowledgment as to a groupwide supervisor pursuant to this section.

(b) In cooperation with other state, federal, and international regulatory agencies, the
commissioner deleted text begin will deleted text end new text begin must new text end identify a single groupwide supervisor for an internationally active
insurance group. The commissioner may determine that the commissioner is the appropriate
groupwide supervisor for an internationally active insurance group that conducts substantial
insurance operations concentrated in this state. However, the commissioner may acknowledge
that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
for the internationally active insurance group. The commissioner shall consider the following
factors when making a determination or acknowledgment under this deleted text begin subsection deleted text end new text begin paragraph new text end :

(1) the place of domicile of the insurers within the internationally active insurance group
that hold the largest share of the group's written premiums, assets, or liabilities;

(2) the place of domicile of the top-tiered deleted text begin insurer(s) deleted text end new text begin insurer or insurers new text end in the insurance
holding company system of the internationally active insurance group;

(3) the location of the executive offices or largest operational offices of the internationally
active insurance group;

(4) whether another regulatory official is acting or is seeking to act as the groupwide
supervisor under a regulatory system that the commissioner determines to be:

(i) substantially similar to the system of regulation provided under the laws of this state;
or

(ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
analysis, and cooperation with other regulatory officials; and

(5) whether another regulatory official acting or seeking to act as the groupwide
supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.

However, a commissioner identified under this section as the groupwide supervisor may
determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
supervisor. The acknowledgment of the groupwide supervisor shall be made after
consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
with and subject to the acknowledgment of other regulatory officials involved with
supervision of members of the internationally active insurance group, and in consultation
with the internationally active insurance group.

(c) Notwithstanding any other provision of law, when another regulatory official is acting
as the groupwide supervisor of an internationally active insurance group, the commissioner
shall acknowledge that regulatory official as the groupwide supervisor. However, in the
event of a material change in the internationally active insurance group that results in:

(1) the internationally active insurance group's insurers domiciled in this state holding
the largest share of the group's premiums, assets, or liabilities; or

(2) this state being the place of domicile of the top-tiered deleted text begin insurer(s) deleted text end new text begin insurer or insurers new text end
in the insurance holding company system of the internationally active insurance group,

the commissioner shall make a determination or acknowledgment as to the appropriate
groupwide supervisor for such an internationally active insurance group pursuant to
deleted text begin subsection deleted text end new text begin paragraph new text end (b).

(d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
insurer registered pursuant to section 60D.19 all information necessary to determine whether
the commissioner may act as the groupwide supervisor of an internationally active insurance
group or if the commissioner may acknowledge another regulatory official to act as the
groupwide supervisor. Prior to issuing a determination that an internationally active insurance
group is subject to groupwide supervision by the commissioner, the commissioner shall
notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
within the internationally active insurance group. The internationally active insurance group
shall have not less than 30 days to provide the commissioner with additional information
pertinent to the pending determination. The commissioner shall publish in the State Register
and on the department's website the identity of internationally active insurance groups that
the commissioner has determined are subject to groupwide supervision by the commissioner.

(e) If the commissioner is the groupwide supervisor for an internationally active insurance
group, the commissioner is authorized to engage in any of the following groupwide
supervision activities:

(1) assess the enterprise risks within the internationally active insurance group to ensure
that:

(i) the material financial condition and liquidity risks to the members of the internationally
active insurance group that are engaged in the business of insurance are identified by
management; and

(ii) reasonable and effective mitigation measures are in place; or

(2) request, from any member of an internationally active insurance group subject to the
commissioner's supervision, information necessary and appropriate to assess enterprise risk,
including but not limited to information about the members of the internationally active
insurance group regarding:

(i) governance, risk assessment, and management;

(ii) capital adequacy; and

(iii) material intercompany transactions;

(3) coordinate and, through the authority of the regulatory officials of the jurisdictions
where members of the internationally active insurance group are domiciled, compel
development and implementation of reasonable measures designed to ensure that the
internationally active insurance group is able to timely recognize and mitigate enterprise
risks to members of deleted text begin such deleted text end new text begin the new text end internationally active insurance group that are engaged in the
business of insurance;

(4) communicate with other state, federal and international regulatory agencies for
members within the internationally active insurance group and share relevant information
subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
set forth in section 60D.215 or otherwise;

(5) enter into agreements with or obtain documentation from any insurer registered under
section 60D.19, any member of the internationally active insurance group, and any other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, providing the basis for or otherwise clarifying the commissioner's role as
groupwide supervisor, including provisions for resolving disputes with other regulatory
officials. deleted text begin Such deleted text end Agreements or documentation new text begin under this clause new text end shall not serve as evidence
in any proceeding that any insurer or person within an insurance holding company system
not domiciled or incorporated in this state is doing business in this state or is otherwise
subject to jurisdiction in this state; and

(6) other groupwide supervision activities, consistent with the authorities and purposes
enumerated above, as considered necessary by the commissioner.

(f) If the commissioner acknowledges that another regulatory official from a jurisdiction
that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
authorized to reasonably cooperate, through supervisory colleges or otherwise, with
groupwide supervision undertaken by the groupwide supervisor, provided that:

(1) the commissioner's cooperation is in compliance with the laws of this state; and

(2) the regulatory official acknowledged as the groupwide supervisor also recognizes
and cooperates with the commissioner's activities as a groupwide supervisor for other
internationally active insurance groups where applicable. Where deleted text begin such deleted text end recognition and
cooperation new text begin by the groupwide supervisor new text end is not reasonably reciprocal, the commissioner is
authorized to refuse recognition and cooperation.

(g) The commissioner is authorized to enter into agreements with or obtain documentation
from any insurer registered under section 60D.19, any affiliate of the insurer, and other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, that provide the basis for or otherwise clarify a regulatory official's role
as groupwide supervisor.

(h) A registered insurer subject to this section shall be liable for and shall pay the
reasonable expenses of the commissioner's participation in the administration of this section,
including the engagement of attorneys, actuaries, and any other professionals and all
reasonable travel expenses.

Sec. 24.

Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:

Subdivision 1.

Classification protection and use of information by commissioner.

new text begin (a)
new text end Documents, materials, or other information in the possession or control of the department
that are obtained by or disclosed to the commissioner or any other person in the course of
an examination or investigation made pursuant to section 60D.21 and all information reported
pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
(e); deleted text begin 60D.18; deleted text end 60D.19; deleted text begin and deleted text end 60D.20 deleted text begin , deleted text end new text begin ; and 60D.217, new text end are classified as confidential or protected
nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
in evidence in a private civil action. However, the commissioner may use the documents,
materials, or other information in the furtherance of any regulatory or legal action brought
as a part of the commissioner's official duties. The commissioner shall not otherwise make
the documents, materials, or other information public without the prior written consent of
the insurer to which it pertains unless the commissioner, after giving the insurer and its
affiliates who would be affected by this action notice and opportunity to be heard, determines
that the interest of policyholders, shareholders, or the public deleted text begin will be deleted text end new text begin is new text end served by the
publication of it, in which event the commissioner may publish all or any part in the manner
the commissioner deems appropriate.

new text begin (b) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
the group capital calculation and group capital ratio produced within the calculation and
any group capital information received from an insurance holding company supervised by
the Federal Reserve Board or any United States groupwide supervisor.
new text end

new text begin (c) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
the liquidity stress test results and supporting disclosures and any liquidity stress test
information received from an insurance holding company supervised by the Federal Reserve
Board and non-United States groupwide supervisors.
new text end

Sec. 25.

Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:

Subd. 3.

Sharing of information.

In order to assist in the performance of the
commissioner's duties, the commissioner:

(1) may share documents, materials, or other information, including the confidential,
protected nonpublic, and privileged documents, materials, or information subject to this
section, new text begin including proprietary and trade secret documents and materials, new text end with new text begin : (i) new text end other state,
federal, and international regulatory agencies deleted text begin , with deleted text end new text begin ; (ii) new text end the NAIC deleted text begin and its affiliates and
subsidiaries, deleted text end new text begin ; (iii) any third-party consultants designated by the commissioner; new text end and deleted text begin with deleted text end new text begin
(iv) new text end state, federal, and international law enforcement authorities, including members of any
supervisory college described in section 60D.215, provided that the recipient agrees in
writing to maintain the confidentiality and privileged status of the document, material, or
other information, and has verified in writing the legal authority to maintain confidentiality;

(2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
privileged documents, materials, or information reported pursuant to section 60D.19 new text begin ,
subdivision 11a, new text end with commissioners of states having statutes or regulations substantially
similar to subdivision 1 and who have agreed in writing not to disclose this information;

(3) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information from the NAIC and deleted text begin its deleted text end new text begin the NAIC's new text end
affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
privileged any document, material, or information received with notice or the understanding
that it is confidential or privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and

(4) shall enter into written agreements with the NAIC new text begin and a third-party consultant
designated by the commissioner new text end governing sharing and use of information provided pursuant
to sections 60D.15 to 60D.29 consistent with this clause that shall:

(i) specify procedures and protocols regarding the confidentiality and security of
information shared with the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party consultant
designated by the commissioner new text end pursuant to sections 60D.15 to 60D.29, including procedures
and protocols for sharing by the NAIC with other state, federal, or international regulators new text begin .
The agreement must provide that the recipient agrees in writing to maintain the confidentiality
and privileged status of the documents, materials, or other information, and has verified in
writing the legal authority to maintain confidentiality new text end ;

(ii) specify that ownership of information shared with the NAIC deleted text begin and its affiliates and
subsidiaries deleted text end new text begin or a third-party consultant new text end pursuant to sections 60D.15 to 60D.29 remains with
the commissioner and the NAIC's new text begin or a third-party consultant's, as designated by the
commissioner, new text end use of the information is subject to the direction of the commissioner;

new text begin (iii) excluding documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
in a permanent database after the underlying analysis is completed;
new text end

deleted text begin (iii) deleted text end new text begin (iv) new text end require prompt notice to be given to an insurer whose confidential or protected
nonpublic information in the possession of the NAIC new text begin or a third-party consultant designated
by the commissioner new text end pursuant to sections 60D.15 to 60D.29 is subject to a request or
subpoena to the NAIC new text begin or a third-party consultant designated by the commissioner new text end for
disclosure or production; deleted text begin and
deleted text end

deleted text begin (iv) deleted text end new text begin (v) new text end require the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party consultant
designated by the commissioner new text end to consent to intervention by an insurer in any judicial or
administrative action in which the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party
consultant designated by the commissioner new text end may be required to disclose confidential or
protected nonpublic information about the insurer shared with the NAIC deleted text begin and its affiliates
and subsidiaries deleted text end new text begin or a third-party consultant designated by the commissioner new text end pursuant to
sections 60D.15 to 60D.29 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (vi) for documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
notification of the identity of the consultant to the applicable insurers.
new text end

Sec. 26.

Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:

Subd. 6.

Classification protection and use by others.

Documents, materials, or other
information in the possession or control of the NAIC new text begin or a third-party consultant designated
by the commissioner new text end pursuant to sections 60D.15 to 60D.29 are confidential, protected
nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
admissible in evidence in a private civil action.

Sec. 27.

Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Certain disclosures or publication prohibited. new text end

new text begin (a) The group capital calculation
and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
liquidity stress test along with the liquidity stress test's results and supporting disclosures
required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
and capital adequacy and group liquidity risks, respectively, and are not intended as a means
to rank insurers or insurance holding company systems generally.
new text end

new text begin (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
disseminating, circulating, or placing before the public, or causing directly or indirectly to
be made, published, disseminated, circulated, or placed before the public in a newspaper,
magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
or over any radio, television station, or any electronic means of communication available
to the public, or in any other way as an advertisement, announcement, or statement containing
a representation or statement with regard to the group capital calculation, group capital ratio,
the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
insurer or any insurer group, or of any component derived in the calculation by any insurer,
broker, or other person engaged in any manner in the insurance business is misleading and
is prohibited.
new text end

new text begin (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
publication if any materially false statement with respect to the group capital calculation,
resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
insurance group's group capital calculation or resulting group capital ratio, liquidity stress
test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
of any amount to an insurer's or insurance group's liquidity stress test result or supporting
disclosures is published in any written publication and the insurer is able to demonstrate to
the commissioner with substantial proof the statement's falsity or inappropriateness. The
sole purpose of an announcement under this paragraph must be to rebut the materially false
statement.
new text end

Sec. 28.

Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:

Subd. 2.

Voting of securities; when prohibited.

No security that is the subject of any
agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
contravention of the provisions of this chapter or of any rule or order issued by the
commissioner may be voted at any shareholder's meeting, or may be counted for quorum
purposes, and any action of shareholders requiring the affirmative vote of a percentage of
shares may be taken as though the securities were not issued and outstanding. No action
taken at the meeting shall be invalidated by the voting of the securities, unless the action
would materially affect control of the insurer or unless the courts of this state have so
ordered. If an insurer or the commissioner has reason to believe that any security of the
insurer has been or is about to be acquired in contravention of the provisions of this chapter
or of any rule or order issued by the commissioner, the insurer or the commissioner may
apply to the district court for the county in which the insurer has its principal place of
business to enjoin any offer, request, invitation, agreement, or acquisition made in
contravention of section deleted text begin 60D.16 deleted text end new text begin 60D.17 new text end or any rule or order issued by the commissioner
to enjoin the voting of any security so acquired, to void any vote of the security already cast
at any meeting of shareholders and for other equitable relief as the nature of the case and
the interest of the insurer's policyholders or the public requires.

Sec. 29.

Minnesota Statutes 2024, section 60D.25, is amended to read:

60D.25 RECEIVERSHIP.

Whenever it appears to the commissioner that any person has committed a violation of
this chapter that so impairs the financial condition of a domestic insurer as to threaten
insolvency or make the further transaction of business by it hazardous to its policyholders new text begin ,
creditors, shareholders, new text end or the public, deleted text begin then deleted text end the commissioner may proceed as provided in
chapter 60B to take possessions of the property of the domestic insurer and to conduct the
business of deleted text begin that deleted text end new text begin the domestic new text end insurer.

Sec. 30.

Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Exception. new text end

new text begin Notwithstanding subdivision 1, health maintenance organizations
are not subject to oversight under this section with respect to section 60D.20, subdivision
1, paragraphs (a), clauses (7) to (9), and (f).
new text end

Sec. 31.

Minnesota Statutes 2024, section 65A.01, subdivision 3c, is amended to read:

Subd. 3c.

Time requirements.

(a) In the event of a policy less than 60 days old that is
declined, or a policy that it is being canceled for nonpayment of premium, the notice must
be mailed to the insured at least deleted text begin 20 deleted text end new text begin 30 new text end days before the effective cancellation date. If a policy
is being declined or canceled for underwriting considerations, the insured must be informed
of the source from which the information was received.

(b) In the event of a midterm cancellation, for reasons listed in subdivision 3a, or
according to policy provisions, notice must be mailed to the insured at least 30 days before
the effective cancellation date.

(c) In the event of a nonrenewal, notice must be mailed to the insured at least 60 days
before the effective date of nonrenewal, containing the specific underwriting or other reason
for the indicated actions.

(d) This subdivision does not apply to commercial policies regulated under sections
60A.36 and 60A.37.

Sec. 32.

Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
read:

new text begin Subd. 42. new text end

new text begin Availability of current policy. new text end

new text begin After an original policy of automobile insurance
under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
first named insured within 21 days of the date a request for the current policy is received.
The copy may be delivered in paper form, electronically, or via a website link. An insurer
is required to provide a current policy in response to a request under this subdivision once
per policy period.
new text end

Sec. 33.

new text begin [168A.1502] INSURER APPLICATION FOR TITLE.
new text end

new text begin (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
to the commissioner for a certificate of title as provided in this section. This section only
applies to vehicles with a title issued by this state.
new text end

new text begin (b) At least 15 days prior to applying for a certificate of title under this section, the
insurer or a designated agent must notify the owner and any lienholders of record of the
insurer's intent to apply for a title. The notice must be sent to the last known address of the
owner and any lienholders by certified mail or by a commercial delivery service that provides
evidence of delivery.
new text end

new text begin (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
the insurer may apply for a certificate of title from the commissioner. The application must
attest that the insurer or a designated agent:
new text end

new text begin (1) paid the claim;
new text end

new text begin (2) requested the title or other necessary transfer documents from the owner; and
new text end

new text begin (3) provided notice to the owner and any lienholders as required under paragraph (b).
new text end

new text begin If the insurer or a designated agent does not attest to completing the requirements under
clauses (1) to (3), the commissioner must reject the application.
new text end

new text begin (d) Notwithstanding any outstanding liens, upon proper application and payment of
applicable fees, the commissioner must issue a certificate of title, salvage title, or prior
salvage title in the name of the insurer. Issuance of a certificate of title, salvage title, or prior
salvage title extinguishes all existing liens against the vehicle. If the vehicle is sold, the
insurer or a designated agent must assign the title to the buyer and the vehicle is transferred
without any liens.
new text end

Sec. 34.

new text begin [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
CLAIM.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "salvage vehicle auction
company" or "auction company" means a business, organization, or individual that sells
salvage vehicles on behalf of insurers.
new text end

new text begin Subd. 2. new text end

new text begin Notice to auction company. new text end

new text begin (a) If an insurance company licensed to conduct
business in Minnesota requests an auction company to take possession of a salvage vehicle
that is subject to an insurance claim and the insurance company does not subsequently take
ownership of the vehicle, the insurance company may direct the auction company to release
the vehicle to the owner or lienholder.
new text end

new text begin (b) The insurance company must provide the auction company notice, by commercial
delivery service, email, or a proprietary electronic system accessible by both the insurance
company and the auction company, authorizing the auction company to release the vehicle
to the vehicle's owner or lienholder.
new text end

new text begin Subd. 3. new text end

new text begin Notice to owner or lienholder. new text end

new text begin (a) Upon receiving notice from an insurance
company, the auction company must send two notices a minimum of 14 days apart to the
owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
from the auction company within 30 days of the date the first notice was sent. Each notice
must include an invoice for any outstanding charges owed to the auction company that must
be paid before the vehicle may be recovered.
new text end

new text begin (b) Notice under this subdivision must be sent to the address of the owner and any
lienholder on record with the commissioner by certified mail or a commercially available
delivery service that provides proof of delivery.
new text end

new text begin Subd. 4. new text end

new text begin Vehicle deemed abandoned. new text end

new text begin (a) If the owner or any lienholder does not recover
the vehicle within 30 days of the date on which the first notice was sent under subdivision
3, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
assigned to the auction company, and (3) without surrendering the certificate of title, the
auction company may request, on a form provided by the commissioner, that the
commissioner issue a certificate of title that is free of liens.
new text end

new text begin (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
by the insurance company required under subdivision 2, and (2) evidence of delivery of the
notices sent to the owner and any lienholders required under subdivision 3 or evidence that
the notices were undeliverable.
new text end

new text begin (c) Notwithstanding any outstanding liens against the vehicle, upon proper application
and receipt of any fees charged under section 168A.29, the commissioner must issue a
certificate of title that is free of liens and bears a salvage or prior salvage brand to the auction
company in possession of the vehicle.
new text end

Sec. 35.

Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:

Subd. 2.

Contracts of $100,000 or more.

Notwithstanding any law to the contrary,
except as stated in section 58.137, and with respect to deleted text begin contracts deleted text end new text begin a conventional loan or
contract new text end for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
sale, or advance made under a written contract, signed by the debtor, for the extension of
credit to the debtor in the amount of $100,000 or more, or any written extension and other
written modification of the written contract. The written contract, written extension, and
written modification are exempt from the other provisions of this chapter.

ARTICLE 5

MISCELLANEOUS COMMERCE POLICY

Section 1.

new text begin [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Association" has the meaning given in section 515B.1-103, clause (4).
new text end

new text begin (c) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).
new text end

new text begin (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
new text end

new text begin (e) "Private data on individuals" has the meaning given in section 13.02, subdivision
12.
new text end

new text begin (f) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A common interest community ombudsperson position is
established within the Department of Commerce to assist unit owners in enforcing their
rights and to facilitate resolution of disputes between unit owners and associations. The
ombudsperson is appointed by the governor, serves in the unclassified service, and may be
removed only for just cause.
new text end

new text begin Subd. 3. new text end

new text begin Qualifications. new text end

new text begin The ombudsperson must be selected without regard to political
affiliation, must be qualified and experienced to perform the duties of the office, and must
be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
be employed by a business entity that provides management or consulting services to an
association, or otherwise be affiliated with an association or management company. A
person is prohibited from serving as ombudsperson while holding another public office.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The ombudsperson must assist unit owners, their tenants, and
associations to understand and enforce their rights under chapter 515B and the governing
documents of the specific unit owner's association, including by:
new text end

new text begin (1) creating and publishing plain language explanations of common provisions of common
interest community declarations and bylaws; and
new text end

new text begin (2) publishing materials and providing resources and referrals related to the rights and
responsibilities of unit owners and associations.
new text end

new text begin (b) Upon the request of a unit owner or association, the ombudsperson must provide
dispute resolution services, including acting as a mediator, in disputes between a unit owner
and an association concerning chapter 515B or the governing documents of the common
interest community, except where:
new text end

new text begin (1) there is a complaint based on the same dispute pending in a judicial or administrative
proceeding, or if there is a harassment or restraining order involved; or
new text end

new text begin (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
or another alternative dispute resolution process.
new text end

new text begin (c) The ombudsperson may provide dispute resolution services for disputes between the
tenant of a unit owner and an association, if the unit owner agrees to participate in the dispute
resolution process.
new text end

new text begin (d) The ombudsperson must compile and analyze complaints and inquiries involving
common interest communities to identify issues and trends. When assisting a unit owner in
enforcing their rights under this section, the ombudsperson may inform them of the existence
of other complaints from other unit owners in the same common interest community, subject
to subdivision 7.
new text end

new text begin (e) The ombudsperson must maintain a website containing, at a minimum:
new text end

new text begin (1) the text of chapter 515B and any other relevant statutes or rules;
new text end

new text begin (2) information regarding the services provided by the Office of the Common Interest
Community Ombudsperson, including assistance with dispute resolution;
new text end

new text begin (3) information regarding alternative dispute resolution methods and programs; and
new text end

new text begin (4) any other information that the ombudsperson determines is useful to unit owners,
associations, common interest community boards of directors, and common interest
community property management companies.
new text end

new text begin (f) When requested or as the ombudsperson deems appropriate, the ombudsperson must
provide reports and recommendations to the legislative committees with jurisdiction over
common interest communities.
new text end

new text begin (g) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable
times, enter and view premises within the control of the common interest community.
new text end

new text begin Subd. 5. new text end

new text begin Powers limited. new text end

new text begin The ombudsperson and the commissioner are prohibited from
rendering a formal legal opinion regarding a dispute between a unit owner and an association.
The ombudsperson and commissioner are prohibited from making a formal determination
or issuing an order regarding disputes between a unit owner and an association. Nothing in
this subdivision limits the ability of the commissioner to execute duties or powers under
any other law.
new text end

new text begin Subd. 6. new text end

new text begin Cooperation. new text end

new text begin Upon request, unit owners and associations must participate in
the dispute resolution process and make good faith efforts to resolve disputes under this
section.
new text end

new text begin Subd. 7. new text end

new text begin Data. new text end

new text begin Data collected, created, or maintained by the office of the ombudsperson
under this section are private data on individuals or nonpublic data.
new text end

new text begin Subd. 8. new text end

new text begin Landlord and tenant law. new text end

new text begin Nothing in this section modifies, supersedes, limits,
or expands the rights and duties of landlords and tenants established under chapter 504B or
any other law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 80E.12, is amended to read:

80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
FACTORY BRANCHES.

It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
motor vehicle dealer to do any of the following:

(a) order or accept delivery of any new motor vehicle, part or accessory thereof,
equipment, or any other commodity not required by law which has not been voluntarily
ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
supersede reasonable provisions of the franchise requiring the dealer to market a
representative line of the new motor vehicles the manufacturer or distributor is publicly
advertising;

(b) order or accept delivery of any new motor vehicle, part or accessory thereof,
equipment, or any other commodity not required by law in order for the dealer to obtain
delivery of any other motor vehicle ordered by the dealer;

(c) order or accept delivery of any new motor vehicle with special features, accessories,
or equipment not included in the list price of the motor vehicles as publicly advertised by
the manufacturer or distributor;

(d) participate monetarily in an advertising campaign or contest, or to purchase any
promotional materials, showroom, or other display decorations or materials at the expense
of the new motor vehicle dealer;

(e) enter into any agreement with the manufacturer or to do any other act prejudicial to
the new motor vehicle dealer by threatening to cancel a franchise or any contractual
agreement existing between the dealer and the manufacturer. Notice in good faith to any
dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
a violation of sections 80E.01 to 80E.17;

(f) change the capital structure of the new motor vehicle dealer or the means by or
through which the dealer finances the operation of the dealership; provided, that the new
motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
dealer; and also provided, that no change in the capital structure shall cause a change in the
principal management or have the effect of a sale of the franchise without the consent of
the manufacturer or distributor as provided in section 80E.13, paragraph (j);

(g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
from changing the executive management control of the new motor vehicle dealer unless
the franchisor proves that the change of executive management will result in executive
management control by a person who is not of good moral character or who does not meet
the franchisor's existing reasonable capital standards and, with consideration given to the
volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
business experience standards in the market area; provided, that where the manufacturer,
distributor, or factory branch rejects a proposed change in executive management control,
the manufacturer, distributor, or factory branch shall give written notice of its reasons to
the dealer;

(h) refrain from participation in the management of, investment in, or the acquisition
of, any other line of new motor vehicle or related products or establishment of another make
or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
provided, however, that this clause does not apply unless the new motor vehicle dealer
maintains a reasonable line of credit for each make or line of new motor vehicle, and that
the new motor vehicle dealer remains in substantial compliance with the terms and conditions
of the franchise and with any reasonable facilities requirements of the manufacturer and
that the acquisition or addition is not unreasonable in light of all existing circumstances;
provided further that if a manufacturer determines to deny a dealer's request for a change
described in this paragraph, such denial must be in writing, must offer an analysis of the
grounds for the denial addressing the criteria contained in this paragraph, and must be
delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
the completed application or documents customarily used by the manufacturer for dealer
actions described in this paragraph. If a denial that meets the requirements of this paragraph
is not sent within this period, the manufacturer shall be deemed to have given its consent
to the proposed change.

For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
establish or maintain exclusive facilities for the manufacturer of a line make unless
determined to be reasonable in light of all existing circumstances or the dealer and the
manufacturer voluntarily agree to such a requirement and separate and adequate consideration
was offered and accepted;

(i) during the course of the agreement, change the location of the new motor vehicle
dealership or make any substantial alterations to the dealership premises during the course
of the agreement, when to do so would be unreasonable or if the manufacturer fails to
provide the dealer 180 days' prior written notice of a required change in location or substantial
premises alteration; deleted text begin or
deleted text end

(j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
be referred to any person or tribunal other than the duly constituted courts of this state or
the United States, if the referral would be binding upon the new motor vehicle dealer deleted text begin . deleted text end new text begin ; or
new text end

new text begin (k) refrain from participation in an auto show described in section 168.27, subdivision
10a.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 10a. new text end

new text begin Participation in auto shows. new text end

new text begin (a) A new motor vehicle dealer may participate
in an auto show outside the county where the dealer maintains the dealer's licensed location
to sell new vehicles without obtaining an additional license if:
new text end

new text begin (1) the dealer participates in an auto show that takes place in a county other than the
county where the dealer maintains a licensed location not more than four times during any
calendar year;
new text end

new text begin (2) the auto show is not held at a licensed location of any participating dealer;
new text end

new text begin (3) the auto show is of a duration of no more than 12 consecutive days;
new text end

new text begin (4) the auto show expressly prohibits:
new text end

new text begin (i) the sale or lease of vehicles at the show;
new text end

new text begin (ii) labeling or marking vehicles as "For Sale" or "Sold";
new text end

new text begin (iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
label;
new text end

new text begin (iv) using printed posters, cards, and other printed materials that contain special dealership
pricing; and
new text end

new text begin (v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
new text end

new text begin (b) The auto show may permit:
new text end

new text begin (1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
and factory-approved rebates;
new text end

new text begin (2) exhibitor staff to make appointments for potential customers to visit the dealership,
collect names of customer leads for later contact, and discuss the suggested retail price of
a vehicle and the availability of particular lines of vehicles; and
new text end

new text begin (3) test rides or test drives of new vehicles, but only under a program conducted by the
auto show.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 216B.40, is amended to read:

216B.40 EXCLUSIVE SERVICE RIGHT; SERVICE EXTENSION.

Except as provided in sections 216B.42 deleted text begin and deleted text end new text begin , new text end 216B.421, new text begin and 216B.422, new text end each electric
utility shall have the exclusive right to provide electric service at retail to each and every
present and future customer in its assigned service area and no electric utility shall render
or extend electric service at retail within the assigned service area of another electric utility
unless the electric utility consents thereto in writing; provided that any electric utility may
extend its facilities through the assigned service area of another electric utility if the extension
is necessary to facilitate the electric utility connecting its facilities or customers within its
own assigned service area.

Sec. 5.

new text begin [216B.422] ELECTRICITY SALES FOR CHARGING ELECTRIC
VEHICLES.
new text end

new text begin A retail seller of electricity used to recharge a battery that powers an electric vehicle, as
defined in section 169.011, subdivision 26a, and that is not otherwise a public utility under
this chapter, is not in violation of section 216B.40 if the electricity the retailer sells was
provided by the utility serving the location of the charging station.
new text end

Sec. 6.

Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Administrative costs for discontinuation of telecommunication services. new text end

new text begin The
commission may assess fees for the actual commission costs to administer the discontinuation
of telecommunication services under section 237.181. The money received from the
assessment must be deposited into an account in the special revenue fund and all money
deposited is appropriated to the commission for the purposes specified under this subdivision.
The commission may initially assess for estimated costs under section 237.181, then must
adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
made under this subdivision is not subject to the cap on assessments provided in subdivision
3 or any other law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 7.

new text begin [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
ALTERNATIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commission" means the Public Utilities Commission.
new text end

new text begin (c) "Voice over internet protocol" or "VOIP" has the meaning given in section 237.025.
new text end

new text begin (d) "Alternative providers" means one or more providers the Federal Communications
Commission has identified through Broadband Data Collection, location fabric data, or a
successor data program as having a provider offering wireline broadband access service
through fiber optic cable to the home capable of carrying VOIP of at least 25 megabits per
second download speed and three megabit per second upload speed and offers VOIP services
at a rate no more than 120 percent of the current rate for local flat-rated voice service. Other
Federal Communications Commission-approved adequate replacements shall be considered
by the commission upon request of the telephone company or telecommunications carrier
if the telephone company or telecommunications carrier fulfills the required obligations set
forth in this section.
new text end

new text begin Subd. 2. new text end

new text begin Customer transition plans. new text end

new text begin (a) A telephone company or telecommunications
carrier may submit a petition to the commission for approval of a customer transition plan
to discontinue telecommunications service in an area where the telephone company or
telecommunications carrier has shown that customers in the affected area have access to
one or more providers for the telecommunications service provided by the telephone company
or telecommunications carrier.
new text end

new text begin (b) The proposed customer transition plan must:
new text end

new text begin (1) clearly identify the area and affected customers;
new text end

new text begin (2) clearly identify the alternative providers available to customers in the affected area;
new text end

new text begin (3) provide for technical assistance to affected customers who request assistance with
the transition to an alternate provider;
new text end

new text begin (4) draft consumer dispute forms for commission approval;
new text end

new text begin (5) describe the public education meeting plans for affected customers when required
by the commission; and
new text end

new text begin (6) provide onetime connection fees and device costs for households eligible for credit
as defined in section 237.70, subdivision 4a.
new text end

new text begin Subd. 3. new text end

new text begin Commission process. new text end

new text begin The commission shall provide for notice and comment
on the petition for a customer transition plan. The commission shall approve, modify, or
reject a petition filed under this section. The commission shall only approve a plan under
this section if it finds that the telephone company or telecommunications carrier:
new text end

new text begin (1) has met its burden of demonstrating to the commission that customers in the affected
area have at least one alternative provider available to those customers;
new text end

new text begin (2) has demonstrated that it will put sufficient resources into assisting customers to
transition to an alternate provider, including providing onetime connection fees and device
costs for households eligible for credit as defined in section 237.70, subdivision 4a; and
new text end

new text begin (3) has held a public meeting in the affected area as required by the commission and
provided written notice of the meeting to customers 60 days in advance.
new text end

new text begin Subd. 4. new text end

new text begin Obligations upon approval. new text end

new text begin Upon approval of a petition for a customer
transition plan under this section, the telephone company or telecommunications carrier
that proposed the petition must continue to serve an affected customer until the telephone
company or telecommunications carrier completes the required actions in subdivision 2 and
any disputes brought by the customer before the commission are resolved.
new text end

new text begin Subd. 5. new text end

new text begin Dispute resolution. new text end

new text begin The commission must resolve any dispute over whether a
location has service available at the rates described in subdivision 1 on an expedited basis
pursuant to section 237.61, prior to the date services will be discontinued. Such disputes
must be submitted at least 90 days prior to the date of service discontinuance and resolved
15 days prior to the date of service discontinuation.
new text end

new text begin Subd. 6. new text end

new text begin Reinstatement of service. new text end

new text begin (a) The commission may reinstate existing obligations
on the telephone company or telecommunications carrier to provide services to customers
affected by this section:
new text end

new text begin (1) on the commission's own initiative; or
new text end

new text begin (2) in response to a request for agency action.
new text end

new text begin (b) Before acting under this subdivision, the commission must:
new text end

new text begin (1) provide notice and conduct a hearing; and
new text end

new text begin (2) determine that reinstating any existing obligation to serve is necessary because
customers lack access to one or more providers.
new text end

new text begin (c) The telephone company or telecommunications carrier that would be affected by
modification or reinstatement of service shall bear the burden of proof in a proceeding under
this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Local exchange carrier. new text end

new text begin Nothing in this section relieves an incumbent local
exchange carrier as defined under United States Code, title 47, section 251(h)(1), of its
existing interconnection obligations or terminates existing interconnection agreements in a
manner other than according to their terms or other existing law.
new text end

new text begin Subd. 8. new text end

new text begin No relinquishment of ETC status. new text end

new text begin A petition approved under this section
shall not be deemed to be a relinquishment of any eligible telecommunications carrier
designation that has been granted to the petitioning telephone company or
telecommunications carrier under federal and state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 8.

new text begin [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Electric vehicle supply equipment" or "EVSE" means a conductor, including an
ungrounded, grounded, and equipment grounding conductor, electric vehicle connector,
attachment plug, and other fitting, device, power outlet, or apparatus installed specifically
to measure, deliver, and compute the price of electrical energy delivered to an electric
vehicle.
new text end

new text begin (c) "Electricity sold as vehicle fuel" means electrical energy transferred to or stored
onboard an electric vehicle primarily to propel the electric vehicle.
new text end

new text begin (d) "Fixed service" means a service that continuously provides the nominal power that
is possible with the equipment as installed.
new text end

new text begin (e) "Nominal power" means the intended, named, or stated, as opposed to the actual,
rate of electrical energy transfer.
new text end

new text begin (f) "Variable service" means a service that may be controlled, resulting in periods of
reduced or interrupted transfer of electrical energy.
new text end

new text begin Subd. 2. new text end

new text begin Inspection; fees. new text end

new text begin The director must inspect a retail EVSE annually or as often
as is possible given budgetary and staffing limitations. The director must charge an EVSE
owner a $100 fee to inspect and test each EVSE charging port.
new text end

new text begin Subd. 3. new text end

new text begin EVSE program account; appropriation. new text end

new text begin An EVSE program account is created
in the special revenue fund of the state treasury. The commissioner must credit to the account
fees collected from inspections under this section and appropriations and transfers made to
the account. Earnings, including interest, dividends, and any other earnings arising from
assets of the account, must be credited to the account. Money in the account is appropriated
to the commissioner to pay for operations of the EVSE program.
new text end

new text begin Subd. 4. new text end

new text begin Method of sale. new text end

new text begin (a) Electrical energy kept, offered, or exposed for sale and
sold at retail as a vehicle fuel must be expressed in kilowatt-hour units.
new text end

new text begin (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold,
a fee may be assessed for other services. A fee assessed for another service may be a fixed
fee or may be based on time measurement.
new text end

new text begin Subd. 5. new text end

new text begin Labeling. new text end

new text begin (a) A computing EVSE must display the unit price in whole cents
or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is unlimited
or free of charge, the computing EVSE must clearly indicate that the electrical energy is
unlimited or free of charge in lieu of the unit price.
new text end

new text begin (b) For a fixed service application, the following information must be conspicuously
displayed or posted on the face of the device:
new text end

new text begin (1) the level of electric vehicle service, expressed as the nominal power transfer; and
new text end

new text begin (2) the type of electrical energy transfer.
new text end

new text begin (c) If a fee is assessed for other services in direct connection with fueling the vehicle,
including but not limited to a fee based on time measurement or a fixed fee, the additional
fee must be displayed.
new text end

new text begin (d) An EVSE must be labeled in a manner that complies with Federal Trade
Commissioner labeling requirements for alternative fuels and alternative fueled vehicles,
Code of Federal Regulations, title 16, part 309.
new text end

new text begin (e) An EVSE must be listed and labeled in a manner that complies with the National
Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems.
new text end

new text begin Subd. 6. new text end

new text begin Advertising; sign prices. new text end

new text begin (a) When a sign or device is used to advertise the
price of electricity to fuel a vehicle, the price for electrical energy must be expressed in
price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is
unlimited or free of charge, the advertising or sign must clearly indicate that the electrical
energy is unlimited or free of charge in lieu of the unit price.
new text end

new text begin (b) If more than one electrical energy unit price may apply over the duration of a single
transaction or sale to the general public, the terms and conditions that determine each unit
price and the times each unit price apply must be clearly displayed.
new text end

new text begin (c) For a fixed service application, the following information must be conspicuously
displayed or posted:
new text end

new text begin (1) the level of electric vehicle service, expressed as the nominal power transfer; and
new text end

new text begin (2) the type of electrical energy transfer.
new text end

new text begin (d) For a variable service application, the following information must be conspicuously
displayed or posted:
new text end

new text begin (1) the type of delivery;
new text end

new text begin (2) the minimum and maximum power transfer that may occur during a transaction,
including whether service may be reduced to zero;
new text end

new text begin (3) the conditions under which a variation in electrical energy transfer occurs; and
new text end

new text begin (4) the type of electrical energy transfer.
new text end

new text begin (e) If a fee is assessed for other services in direct connection with the fueling of the
vehicle, including but not limited to a fee based on time measurement or a fixed fee, the
additional fee must be included on all street signs or other advertising.
new text end

Sec. 9.

new text begin [325F.079] SALE OF NITROUS OXIDE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Nitrous oxide" means a canister containing nitrous oxide that is sold by a retailer.
new text end

new text begin (c) "Retailer" means a person, located within Minnesota or elsewhere, engaged in the
business of selling or offering for sale nitrous oxide to a consumer in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition. new text end

new text begin A retailer is prohibited from selling or offering for sale nitrous
oxide to a consumer in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin Nitrous oxide may be purchased for the following reasons:
new text end

new text begin (1) care or treatment of a disease, condition, or injury by a licensed medical or dental
practitioner;
new text end

new text begin (2) possession and use by a manufacturer as part of a manufacturing process or industrial
operation;
new text end

new text begin (3) possession, use, or sale as a propellant in food preparation for restaurant, food service,
or houseware products; or
new text end

new text begin (4) possession, use, or sale of nitrous oxide for automative purposes.
new text end

new text begin Subd. 4. new text end

new text begin Violation. new text end

new text begin A person who violates this section is guilty of a misdemeanor.
new text end

Sec. 10.

new text begin [325F.677] AVAILABILITY OF WATER AT PLACES OF
ENTERTAINMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "place of entertainment" has the
meaning given in section 325F.676, subdivision 1, paragraph (h).
new text end

new text begin Subd. 2. new text end

new text begin Available water requirement. new text end

new text begin When occupancy exceeds 100 attendees and
where an attendee must have a ticket in order to access the place of entertainment, a place
of entertainment must provide attendees with access to potable water by:
new text end

new text begin (1) providing water at no cost to the attendees;
new text end

new text begin (2) allowing attendees to bring factory-sealed bottled water into the place of
entertainment; or
new text end

new text begin (3) allowing attendees to bring an empty water bottle to the place of entertainment and
providing attendees with access to potable water to fill the bottle. A place of entertainment
may prohibit certain types and sizes of water bottles in order to protect the safety of others.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin An exhibit, gallery, or presentation space where beverages are
prohibited is not required to allow water into the exhibit, gallery, or presentation space if
water is available at no cost in an accessible location outside of the museum exhibit gallery
or presentation space.
new text end

Sec. 11.

Minnesota Statutes 2024, section 325G.24, subdivision 2, is amended to read:

Subd. 2.

Right of member unilateral termination.

(a) Any person who has elected to
become a member of a club may unilaterally terminate such membership, in the person's
exclusive discretion, by giving notice of termination at any time.

(b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
and postage prepaid.

(c) A club must not impose a termination fee or any other liability on the member for
termination under this subdivision.

(d) Termination under this subdivision is effective at the end of the membership term
in which the member provides the notice of termination. If membership is at-will without
a defined membership term, then termination under this subdivision is effective deleted text begin immediately,
unless deleted text end new text begin no later than 30 days after the date of a verified consumer's notice of termination. If new text end
the member indicates a future effective date of termination deleted text begin , in which event deleted text end new text begin beyond those
set forth herein, new text end the date indicated by the member is the effective date of termination.

(e) If a member provides notice of termination at any time before midnight of the third
business day following the date on which membership was attained, the club must treat the
notice as a notice of cancellation under subdivision 1, unless the member specifically
provides for a future termination effective date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, and applies to contracts
entered into, modified, or renewed on or after that date.
new text end

Sec. 12.

new text begin [515B.5-101] COMMON INTEREST COMMUNITY REGISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Association" has the meaning given in section 515B.1-103, clause (4).
new text end

new text begin (c) "Common interest community" has the meaning given in section 515B.1-103, clause
(10).
new text end

new text begin (d) "Master declaration" has the meaning given in section 515B.1-103, clause (22).
new text end

new text begin (e) "Master developer" has the meaning given in section 515B.1-103, clause (23).
new text end

new text begin (f) "Unit" has the meaning given in section 515B.1-103, clause (35).
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The Department of Commerce must establish a register that
contains the information required under subdivision 3 regarding each residential common
interest community or similar association governed by this chapter, operating within
Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Registration required. new text end

new text begin (a) A residential common interest community or similar
association governed by this chapter must annually register under this section if the common
interest community or similar association owns any number of units in Minnesota.
new text end

new text begin (b) A residential common interest community or similar association governed by this
chapter must provide the following information to the department when registering:
new text end

new text begin (1) the common interest community or association's legal name;
new text end

new text begin (2) the common interest community or association's federal employer identification
number;
new text end

new text begin (3) the common interest community or association's telephone number, email address,
and mailing and physical address;
new text end

new text begin (4) the current board officers' full names, titles, email addresses, and other contact
information;
new text end

new text begin (5) a copy of the common interest community or association's governing documents,
including but not limited to declarations, bylaws, rules, and any amendments;
new text end

new text begin (6) the total number of parcels in the common interest community or association; and
new text end

new text begin (7) the total amount of revenues and expenses from the common interest community or
association's annual budget.
new text end

new text begin (c) For residential common interest communities or associations governed by this chapter
that are under the control of a master developer, the register must include:
new text end

new text begin (1) the master developer's legal name;
new text end

new text begin (2) the master developer's telephone number, email address, and mailing and physical
address;
new text end

new text begin (3) the master developer's federal employer identification number;
new text end

new text begin (4) the total number of parcels owned by the master developer on the date of reporting;
new text end

new text begin (5) the master developer's master declaration required under section 515B.2-121;
new text end

new text begin (6) the master developer's anticipated timeline to transfer control to the owners; and
new text end

new text begin (7) how the master developer transfers control to the owners.
new text end

new text begin (d) Residential common interest communities or associations governed by this chapter
that contract with a property management company must also provide the following
information:
new text end

new text begin (1) the property management company's legal name;
new text end

new text begin (2) the property management company's telephone number, email address, and mailing
and physical address; and
new text end

new text begin (3) a brief description of the property management company's legal obligations under
the terms of the contract.
new text end

new text begin Subd. 4. new text end

new text begin Registration fee. new text end

new text begin Each residential common interest community or association
must pay an annual registration fee of $55 to support the register established in subdivision
2 and the common interest community ombudsperson under section 45.0137.
new text end

new text begin Subd. 5. new text end

new text begin Data classification. new text end

new text begin Data collected, created, received, or maintained pursuant
to this section is private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin Subd. 6. new text end

new text begin Notice requirement. new text end

new text begin The Department of Commerce must provide notice to a
common interest community or association that fails to register. The common interest
community or association must register as provided under this section within 60 days after
receiving the notice to register.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

ARTICLE 6

CANNABIS FINANCE POLICY

Section 1.

Minnesota Statutes 2024, section 342.17, is amended to read:

342.17 SOCIAL EQUITY APPLICANTS.

(a) An applicant qualifies as a social equity applicant if the applicant:

(1) was convicted new text begin of, received a stay of adjudication under chapter 609 for, or was
adjudicated delinquent under chapter 260B new text end of an offense involving the possession or sale
of cannabis or marijuana prior to May 1, 2023;

(2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
involving the possession or sale of cannabis or marijuana prior to May 1, 2023;

(3) was a dependent of an individual who was convicted of an offense involving the
possession or sale of cannabis or marijuana prior to May 1, 2023;

(4) is a military veteran, including a service-disabled veteran, current or former member
of the national guard;

(5) is a military veteran or current or former member of the national guard who lost
honorable status due to an offense involving the possession or sale of cannabis or marijuana;

(6) has been a resident for the last five years of one or more subareas, such as census
tracts or neighborhoods:

(i) that experienced a disproportionately large amount of cannabis enforcement as
determined by the study conducted by the office pursuant to section 342.04, paragraph (b),
or another report based on federal or state data on arrests or convictions;

(ii) where the poverty rate was 20 percent or more;

(iii) where the median family income did not exceed 80 percent of the statewide median
family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the
statewide median family income or 80 percent of the median family income for that
metropolitan area;

(iv) where at least 20 percent of the households receive assistance through the
Supplemental Nutrition Assistance Program; or

(v) where the population has a high level of vulnerability according to the Centers for
Disease Control and Prevention and Agency for Toxic Substances and Disease Registry
(CDC/ATSDR) Social Vulnerability Index; or

(7) has participated in the business operation of a farm for at least three years and
currently provides the majority of the day-to-day physical labor and management of a farm
that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year.

(b) The qualifications described in paragraph (a) apply to each individual applicant or,
in the case of a business entity, apply to at least 65 percent of the controlling ownership of
the business entity.

Sec. 2.

Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Cannabis testing facility licenses. new text end

new text begin (a) Pending an applicant's accreditation
by a laboratory accrediting organization approved by the office, the office may issue or
renew a cannabis testing facility license for an applicant that is a person, cooperative, or
business if the applicant:
new text end

new text begin (1) submits documentation to the office demonstrating that the applicant has a signed
contract with a laboratory accreditation organization approved by the office, has scheduled
an audit, and is making progress toward accreditation by a laboratory accrediting organization
approved by the office according to the standards of the most recent edition of ISO/IEC
17025: General Requirements for the Competence of Testing and Calibration Laboratories;
new text end

new text begin (2) passes a final site inspection conducted by the office; and
new text end

new text begin (3) meets all other licensing requirements according to chapter 342 and Minnesota Rules.
new text end

new text begin (b) After receiving a license under this section, a license holder may operate a cannabis
testing facility up to one year with pending accreditation status.
new text end

new text begin (c) If, after one year, a license holder continues to have pending accreditation status, the
license holder may apply for a onetime extension to continue operations for up to six months.
The office may grant an extension under this paragraph to a license holder if the license
holder:
new text end

new text begin (1) passes a follow-up site inspection conducted by the office;
new text end

new text begin (2) submits an initial audit report from a laboratory accrediting organization approved
by the office; and
new text end

new text begin (3) submits any additional information requested by the office.
new text end

new text begin (d) The office may revoke a cannabis testing facility license held by a license holder
with pending accreditation status if the office determines or has reason to believe that the
license holder:
new text end

new text begin (1) is not making progress toward accreditation; or
new text end

new text begin (2) has violated a cannabis testing requirement, an ownership requirement, or an
operational requirement in chapter 342 or Minnesota Rules.
new text end

new text begin (e) The office must not issue or renew a cannabis testing facility license under this
subdivision for a license holder if the license holder's accreditation has been suspended or
revoked by a laboratory accrediting organization.
new text end

Sec. 3.

Minnesota Statutes 2024, section 342.37, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Loss of accreditation. new text end

new text begin (a) A license holder must report loss of accreditation
to the office within 24 hours of receiving notice of the loss of accreditation.
new text end

new text begin (b) The office must immediately revoke a license holder's license upon receiving notice
that the license holder has lost accreditation.
new text end

ARTICLE 7

CONSUMER PROTECTION

Section 1.

Minnesota Statutes 2024, section 116.943, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Adult mattress" means a mattress other than a crib mattress or toddler mattress.

(c) "Air care product" means a chemically formulated consumer product labeled to
indicate that the purpose of the product is to enhance or condition the indoor environment
by eliminating odors or freshening the air.

(d) "Automotive maintenance product" means a chemically formulated consumer product
labeled to indicate that the purpose of the product is to maintain the appearance of a motor
vehicle, including products for washing, waxing, polishing, cleaning, or treating the exterior
or interior surfaces of motor vehicles. Automotive maintenance product does not include
automotive paint or paint repair products.

(e) "Carpet or rug" means a fabric marketed or intended for use as a floor covering.

(f) "Cleaning product" means a finished product used primarily for domestic, commercial,
or institutional cleaning purposes, including but not limited to an air care product, an
automotive maintenance product, a general cleaning product, or a polish or floor maintenance
product.

(g) "Commissioner" means the commissioner of the Pollution Control Agency.

(h) "Cookware" means durable houseware items used to prepare, dispense, or store food,
foodstuffs, or beverages. Cookware includes but is not limited to pots, pans, skillets, grills,
baking sheets, baking molds, trays, bowls, and cooking utensils.

(i) "Cosmetic" means articles, excluding soap:

(1) intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise
applied to the human body or any part thereof for the purpose of cleansing, beautifying,
promoting attractiveness, or altering the appearance; and

(2) intended for use as a component of any such article.

(j) "Currently unavoidable use" means a use of PFAS that the commissioner has
determined by rule under this section to be essential for health, safety, or the functioning
of society and for which alternatives are not reasonably available.

(k) "Fabric treatment" means a substance applied to fabric to give the fabric one or more
characteristics, including but not limited to stain resistance or water resistance.

(l) "Intentionally added" means PFAS deliberately added during the manufacture of a
product where the continued presence of PFAS is desired in the final product or one of the
product's components to perform a specific function.

(m) "Juvenile product" means a product designed or marketed for use by infants and
children under 12 years of age:

(1) including but not limited to a baby or toddler foam pillow; bassinet; bedside sleeper;
booster seat; changing pad; child restraint system for use in motor vehicles and aircraft;
co-sleeper; crib mattress; highchair; highchair pad; infant bouncer; infant carrier; infant
seat; infant sleep positioner; infant swing; infant travel bed; infant walker; nap cot; nursing
pad; nursing pillow; play mat; playpen; play yard; polyurethane foam mat, pad, or pillow;
portable foam nap mat; portable infant sleeper; portable hook-on chair; soft-sided portable
crib; stroller; and toddler mattress; deleted text begin and
deleted text end

(2) not including a children's electronic product such as a personal computer, audio and
video equipment, calculator, wireless phone, game console, handheld device incorporating
a video screen, or any associated peripheral such as a mouse, keyboard, power supply unit,
or power cord; or an adult mattress deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) not including:
new text end

new text begin (i) an off-highway vehicle made for children;
new text end

new text begin (ii) an all-terrain vehicle made for children;
new text end

new text begin (iii) an off-highway motorcycle made for children;
new text end

new text begin (iv) a snowmobile made for children;
new text end

new text begin (v) an electric-assisted bicycle made for children; or
new text end

new text begin (vi) a replacement part for a vehicle described in items (i) to (v).
new text end

(n) "Manufacturer" means the person that creates or produces a product or whose brand
name is affixed to the product. In the case of a product imported into the United States,
manufacturer includes the importer or first domestic distributor of the product if the person
that manufactured or assembled the product or whose brand name is affixed to the product
does not have a presence in the United States.

(o) "Medical device" has the meaning given "device" under United States Code, title
21, section 321, subsection (h).

(p) "Perfluoroalkyl and polyfluoroalkyl substances" or "PFAS" means a class of
fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

(q) "Product" means an item manufactured, assembled, packaged, or otherwise prepared
for sale to consumers, including but not limited to its product components, sold or distributed
for personal, residential, commercial, or industrial use, including for use in making other
products.

(r) "Product component" means an identifiable component of a product, regardless of
whether the manufacturer of the product is the manufacturer of the component.

(s) "Ski wax" means a lubricant applied to the bottom of snow runners, including but
not limited to skis and snowboards, to improve their grip or glide properties. Ski wax includes
related tuning products.

(t) "Textile" means an item made in whole or part from a natural or synthetic fiber, yarn,
or fabric. Textile includes but is not limited to leather, cotton, silk, jute, hemp, wool, viscose,
nylon, and polyester.

(u) "Textile furnishings" means textile goods of a type customarily used in households
and businesses, including but not limited to draperies, floor coverings, furnishings, bedding,
towels, and tablecloths.

(v) "Upholstered furniture" means an article of furniture that is designed to be used for
sitting, resting, or reclining and that is wholly or partly stuffed or filled with any filling
material.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, section 116.943, subdivision 5, is amended to read:

Subd. 5.

Prohibitions.

(a) Beginning January 1, 2025, a person may not sell, offer for
sale, or distribute for sale in this state the following products if the product contains
intentionally added PFAS:

(1) carpets or rugs;

(2) cleaning products;

(3) cookware;

(4) cosmetics;

(5) dental floss;

(6) fabric treatments;

(7) juvenile products;

(8) menstruation products;

(9) textile furnishings;

(10) ski wax; or

(11) upholstered furniture.

new text begin (b) Paragraph (a) does not prohibit the sale, offering for sale, or distribution of a product
that contains intentionally added PFAS only in internal components that do not come into
direct contact with a person's skin or mouth during reasonably foreseeable use or abuse of
the product.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commissioner may by rule identify additional products by category or use
that may not be sold, offered for sale, or distributed for sale in this state if they contain
intentionally added PFAS and designate effective dates. A prohibition adopted under this
paragraph must be effective no earlier than January 1, 2025, and no later than January 1,
2032. The commissioner must prioritize the prohibition of the sale of product categories
that, in the commissioner's judgment, are most likely to contaminate or harm the state's
environment and natural resources if they contain intentionally added PFAS.

deleted text begin (c) deleted text end new text begin (d) new text end Beginning January 1, 2032, a person may not sell, offer for sale, or distribute for
sale in this state any product that contains intentionally added PFAS, unless the commissioner
has determined by rule that the use of PFAS in the product is a currently unavoidable use.
The commissioner may specify specific products or product categories for which the
commissioner has determined the use of PFAS is a currently unavoidable use. The
commissioner may not determine that the use of PFAS in a product is a currently unavoidable
use if the product is listed in paragraph (a).

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner may not take action under paragraph deleted text begin (b) deleted text end new text begin (c) new text end or deleted text begin (c) deleted text end new text begin (d) new text end with
respect to a pesticide, as defined under chapter 18B, a fertilizer, an agricultural liming
material, a plant amendment, or a soil amendment as defined under chapter 18C, unless the
commissioner of agriculture approves the action.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 325E.3892, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) new text end For purposes of this section, new text begin the following terms have
the meanings given.
new text end

new text begin (b) new text end "Covered product" means any of the following products or product components:

(1) jewelry;

(2) toys;

(3) cosmetics and personal care products;

(4) puzzles, board games, card games, and similar games;

(5) play sets and play structures;

(6) outdoor games;

(7) school supplies new text begin , except ink pens and mechanical pencils new text end ;

(8) pots and pans;

(9) cups, bowls, and other food containers new text begin , except where cadmium is contained in a
vitreous enamel in a nonfood contact surface new text end ;

(10) craft supplies and jewelry-making supplies;

(11) chalk, crayons, new text begin children's new text end paints, and other art supplies new text begin except professional artist
materials, including but not limited to oil-based paints, water-based paints, paints, pastels,
pigments, ceramic glazes, and markers new text end ;

(12) fidget spinners;

(13) costumes, costume accessories, and children's and seasonal party supplies;

(14) deleted text begin keys, deleted text end key chains deleted text begin , deleted text end and key rings; and

(15) clothing, footwear, headwear, and accessories.

new text begin (c) "Pastels" means a crayon composed of powdered pigments bonded with gum or resin.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 325E.3892, subdivision 2, is amended to read:

Subd. 2.

Prohibition.

(a) A person must not import, manufacture, sell, hold for sale, or
distribute or offer for use in this state any covered product containing:

(1) lead at more than 0.009 percent by total weight (90 parts per million); or

(2) cadmium at more than 0.0075 percent by total weight (75 parts per million).

(b) This section does not apply to new text begin :
new text end

new text begin (1) new text end covered products containing lead or cadmium, or both, when regulation is preempted
by federal law deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) covered products that contain lead only in solder used in internal components or in
pen tips so long as:
new text end

new text begin (i) the product is not imported, manufactured, sold, held for sale, distributed, or offered
for use in this state after July 1, 2028; and
new text end

new text begin (ii) the manufacturer of the product submits biennial reports to the commissioner of the
Pollution Control Agency that explain the barriers to removing lead from the product,
progress towards adoption of lead-free alternatives, and a timeline to fully adopt a lead-free
alternative.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [325E.3893] LABELING REQUIREMENTS FOR MENSTRUAL PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Labeling requirement. new text end

new text begin A manufacturer of a menstrual product sold,
offered for sale, or distributed in the state that contains intentionally added synthetic
ingredients must disclose on the label the synthetic ingredients contained in the menstrual
product.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin This section shall be enforced in the manner provided in section
325E.3892, subdivision 3.
new text end

Sec. 6.

Minnesota Statutes 2024, section 325F.072, subdivision 3, is amended to read:

Subd. 3.

Prohibition.

(a) No person, political subdivision, or state agency shall
manufacture or knowingly sell, offer for sale, distribute for sale, or distribute for use in this
state, and no person shall use in this state, class B firefighting foam containing PFAS
chemicals.

(b) This subdivision does not apply to the manufacture, sale, distribution, or use of class
B firefighting foam for which the inclusion of PFAS chemicals is required by federal law,
including but not limited to Code of Federal Regulations, title 14, section 139.317. If a
federal requirement to include PFAS chemicals in class B firefighting foam is revoked after
January 1, 2024, class B firefighting foam subject to the revoked requirements is no longer
exempt under this paragraph effective one year after the day of revocation.

(c) This subdivision does not apply to the manufacture, sale, distribution, or use of class
B firefighting foam for purposes of use at an airport, as defined under section 360.013,
subdivision 39, until the state fire marshal makes a determination that:

(1) the Federal Aviation Administration has provided policy guidance on the transition
to fluorine-free firefighting foam;

(2) a fluorine-free firefighting foam product is included in the Federal Aviation
Administration's Qualified Product Database; and

(3) a firefighting foam product included in the database under clause (2) is commercially
available in quantities sufficient to reliably meet the requirements under Code of Federal
Regulations, title 14, part 139.

(d) Until the state fire marshal makes a determination under paragraph (c), the operator
of an airport using class B firefighting foam containing PFAS chemicals must, on or before
December 31 each calendar year, submit a report to the state fire marshal regarding the
status of the airport's conversion to class B firefighting foam products without intentionally
added PFAS, the disposal of class B firefighting foam products with intentionally added
PFAS, and an assessment of the factors listed in paragraph (c) as applied to the airport.

new text begin (e) Until January 1, 2028, this subdivision does not apply to the manufacture, sale,
distribution, or use of class B firefighting foam for use in hangar fixed firefighting systems
at an airport, as defined under section 360.013, subdivision 39. The commissioner of the
Pollution Control Agency, in consultation with the state fire marshal, may provide the
operator of an airport using class B firefighting foam containing PFAS chemicals one year
extensions beyond this date upon a showing that the need for additional time is beyond the
operator's control and that public safety and the environment will be protected during the
period of the extension.
new text end