SF 4

as introduced - 94th Legislature, 2025 1st Special Session (2025 - 2025) Posted on 06/10/2025 09:31am

A bill for an act
relating to commerce; establishing a budget for the Department of Commerce;
appropriating and transferring money for other commerce and Office of Cannabis
Management activities; adding, modifying, and eliminating various provisions
governing financial institutions, insurance, insurance holding companies, Medicare
supplement insurance, reinsurance, and commerce and consumer protection policy;
modifying certain fees; authorizing administrative rulemaking; classifying certain
data; requiring reports; making technical and conforming changes; amending
Minnesota Statutes 2024, sections 41A.09, subdivision 2a; 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; 60A.052,
subdivision 1; 60A.201, subdivision 2, by adding a subdivision; 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 1b, 1f, 1h, 1p, 1r, 1u, 4; 62A.44, subdivision 2; 62A.65, subdivisions
1, 2, by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision
1; 62D.221, by adding a subdivision; 62E.21, by adding subdivisions; 62E.23,
subdivisions 2, 3, by adding subdivisions; 62E.24, subdivisions 1, 2; 62E.25,
subdivision 1; 62J.26, subdivision 3, by adding a subdivision; 62Q.73, subdivision
4; 62V.06, subdivision 5; 65B.02, subdivision 7; 65B.05; 65B.06, subdivisions 1,
2, 3; 65B.10, subdivision 2; 72A.20, by adding a subdivision; 80A.58; 80A.65,
subdivision 2, by adding a subdivision; 80A.66; 80E.12; 82.63, subdivision 2;
82B.19, subdivision 5; 168.27, by adding a subdivision; 216B.40; 216B.62, by
adding a subdivision; 239.761, subdivisions 3, 4, 5, 6; 239.791, subdivision 11;
296A.01, subdivisions 20, 23, 24; 297I.20, by adding a subdivision; 297I.40, by
adding a subdivision; 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3;
325G.24, subdivision 2; 334.01, subdivision 2; 550.136, subdivision 3; 551.06,
subdivision 3; 571.922; Laws 2023, chapter 63, article 9, section 5; proposing
coding for new law in Minnesota Statutes, chapters 45; 60D; 216B; 237; 239;
325F; repealing Laws 2023, chapter 57, article 2, sections 13, as amended; 66, as
amended.

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 42,318,000 new text end

new text begin $ new text end

new text begin 42,905,000 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 39,346,000 new text end	new text begin 39,997,000 new text end
new text begin Workers' Compensation Fund new text end	new text begin 815,000 new text end	new text begin 815,000 new text end
new text begin Special Revenue new text end	new text begin 2,157,000 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 3,035,000 new text end

new text begin 3,035,000 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) $543,000 each year is for additional
adviser and broker-dealer examiners.
new text end

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

new text begin 11,300,000 new text end

new text begin 11,978,000 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 operate the
Prescription Drug Affordability Board
established under Minnesota Statutes, section
62J.87.
new text end

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

new text begin (e) $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 Subd. 4. new text end new text begin Enforcement new text end

new text begin 8,098,000 new text end

new text begin 8,098,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 7,883,000 new text end	new text begin 7,883,000 new text end
new text begin Workers' Compensation new text end	new text begin 215,000 new text end	new text begin 215,000 new text end

new text begin (a) $215,000 each year is from the workers'
compensation fund.
new text end

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

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

new text begin (d) $347,000 each year is for the common
interest community ombudsperson established
under Minnesota Statutes, section 45.0137.
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. 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 13,753,000 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 Special Revenue new text end	new text begin 64,000 new text end	new text begin -0- new text end

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

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

new text begin (c) $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 (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 (f) $20,000 each year is to pay Minnesota's
membership dues to the National Conference
of Insurance Legislators. The appropriations
in this paragraph are onetime.
new text end

new text begin (g) $64,000 the first year is from the family
and medical benefit insurance account in the
special revenue fund.
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 $1,259,000 the first year and $1,438,000 the
second year are for 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 33,443,000 new text end

new text begin $ new text end

new text begin 36,350,000 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 $11,254,000 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. The base for
cannabis industry community renewal grants
is $6,489,000 in each of fiscal years 2028 and
2029.
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 $31,585,000 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

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

$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. new text begin Notwithstanding
Minnesota Statutes, section 16A.28, this
appropriation is available until June 30, 2026. new text end
The base for this appropriation is $15,000,000
in fiscal year 2026 and each fiscal year
thereafter.

$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

Sec. 5. new text begin APPROPRIATION; LEGISLATIVE COORDINATING COMMISSION.
new text end

new text begin $200,000 in fiscal year 2025 is appropriated from the general fund to the Legislative
Coordinating Commission to provide administrative support to the task force on homeowners
and commercial property insurance under article 3, section 20. Upon the request of the task
force, the commissioners of commerce, employment and economic development, and the
Housing Finance Agency must provide technical support and expertise. This is a onetime
appropriation and is available until June 30, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

FINANCIAL INSTITUTIONS POLICY

Section 1.

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. 2.

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 under 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. 3.

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. 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 harassment, as defined in section 609.749, subdivision 2, paragraph (c), 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, 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 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. 10.

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.

Sec. 11. 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

INSURANCE

Section 1.

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. 2.

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. 3.

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. 4.

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

Subd. 2.

Guaranteed renewal.

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 deleted text begin must not refuse deleted text end new text begin is prohibited from refusing new text end to renew deleted text begin an deleted text end new text begin
a Minnesota resident's new text end individual health plan deleted text begin , except for nonpayment of premiums, fraud,
or misrepresentation. deleted text end new text begin unless:
new text end

new text begin (1) the enrollee has failed to pay premiums in accordance with the health plan's terms,
including any timeliness requirements;
new text end

new text begin (2) the enrollee has performed an act or practice that constitutes fraud or made an
intentional misrepresentation of material fact under the health plan's terms;
new text end

new text begin (3) the enrollee no longer lives in the area where the issuer is authorized to operate;
new text end

new text begin (4) a health carrier discontinues an individual health plan under subdivision 2a; or
new text end

new text begin (5) a health carrier discontinues issuing new individual health plans and refuses to renew
all of the health carrier's existing individual health plans issued in Minnesota as provided
under subdivision 8.
new text end

Sec. 5.

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 Discontinuing individual health plan. new text end

new text begin (a) In order to discontinue a particular
type of individual health plan in Minnesota for purposes of subdivision 2, clause (4), a health
carrier must:
new text end

new text begin (1) provide written notice to the commissioner that approves the individual health plan's
policy forms and filings, in a form and manner approved by the commissioner, regarding
the health carrier's intent to discontinue a particular type of individual health plan in
Minnesota. The notice must be provided no later than May 1 of the year before the date the
individual health plan intends to discontinue the particular type of individual health plan;
new text end

new text begin (2) provide written notice to each individual enrolled in the individual health plan no
later than 90 days before the date the coverage is discontinued;
new text end

new text begin (3) offer to each individual covered by the individual health plan that the health carrier
intends to discontinue the option to purchase on a guaranteed issue basis any other individual
health plan currently offered by the health carrier for individuals in the individual market;
and
new text end

new text begin (4) act uniformly without regard to any health status factor of a covered individual or a
dependent of a covered individual who may become eligible for coverage.
new text end

new text begin (b) Subject to paragraph (d), the commissioner may disapprove a health carrier
discontinuing a particular type of individual health plan within 60 days after receiving notice
under paragraph (a) if the commissioner determines discontinuing the plan is not in Minnesota
policyholders' best interest. When making the determination under this paragraph, the
commissioner may consider the plan's enrollment size, the availability of comparable
individual health plan options offered by the health carrier in Minnesota, or any other factor
the commissioner deems relevant.
new text end

new text begin (c) A health carrier may appeal the commissioner's determination made under paragraph
(b) to disapprove the health carrier's plan to discontinue a particular type of individual health
plan in Minnesota. An appeal under this paragraph is subject to the contested case procedures
under chapter 14 and must be made within 30 days of the date the commissioner makes a
written determination under paragraph (b).
new text end

new text begin (d) A health carrier may discontinue an individual health plan without commissioner
approval if the individual health plan is not a catastrophic or platinum-level health plan, as
defined in United States Code, title 42, section 18022, and the plan:
new text end

new text begin (1) has fewer than 25 enrollees; or
new text end

new text begin (2) is a grandfathered plan, as defined in section 62A.011, subdivision 1b.
new text end

Sec. 6.

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. 7.

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, clause (4), and 2a, must receive the 90 days' notice required
under section 62A.65, subdivision 2a, paragraph (a), clause (2); 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. 8.

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. 9.

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) The commissioner must maintain the ability to conduct an evaluation for one mandated
health benefit proposal per even-numbered year that is introduced or offered by a legislator
who was not seated by the deadline for notification under paragraph (a). The commissioner
must conduct an evaluation of the mandated health benefit proposal offered or introduced
pursuant to this paragraph in an expedited manner, taking into consideration the complexity
of the proposal.
new text end

Sec. 10.

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 Adoption of forms. new text end

new text begin (a) No later than July 1, 2026, the commissioner of
commerce must adopt forms for:
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. 11.

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.

Sec. 12.

Minnesota Statutes 2024, section 65B.02, subdivision 7, is amended to read:

Subd. 7.

Participation ratio.

"Participation ratio" means the ratio of the member's
Minnesota premiums, or other measure of business written approved by the commissioner,
in relation to the comparable statewide totals for all members.

(1) For private passenger nonfleet automobile insurance coverages the participation ratio
shall be based on voluntary car years written in this state for the calendar year ending
December 31 of the second prior year, as reported by the statistical agent of each member
as private passenger nonfleet exposures.

(2) For insurance coverages on all other automobiles, including insurance for fleets,
commercial vehicles, public vehicles and garages, the ratio shall be based on the total
Minnesota gross, direct automobile insurance premiums written, including both policy and
membership fees less return premiums and premiums on policies not taken, without including
reinsurance assumed and without deducting reinsurance ceded, and less the amount of such
premiums reported as received for insurance on private passenger nonfleet vehicles, for the
calendar year ending December 31 of the second prior year.

(3) For the purpose of determining each member's responsibility for expenses and
assessments new text begin to operate the facility new text end , the ratio shall be based on each member's total Minnesota
car years and gross, direct premiums written, including both policy and membership fees
less return premiums and premiums on policies not taken, without including reinsurance
assumed and without deducting reinsurance ceded, for the calendar year ending December
31 of the second prior year, provided, however, that the preliminary determination of each
member's responsibility for expenses and assessments may use the calendar year ending
December 31 of the third prior year.

Sec. 13.

Minnesota Statutes 2024, section 65B.05, is amended to read:

65B.05 POWER OF FACILITY, GOVERNING COMMITTEE.

new text begin (a) The facility is authorized to: (1) issue or cause to be issued insurance policies in the
name of the Minnesota automobile insurance plan to applicants for the types of insurance
available under the plan, subject to limits specified in the plan of operation; (2) underwrite
the insurance and adjust and pay losses with respect to the plan; and (3) retain, hire, or
appoint an individual or company to perform a function under clause (1) or (2).
new text end

new text begin (b) new text end The governing committee shall have the power to direct the operation of the facility
in all pursuits consistent with the purposes and terms of sections 65B.01 to 65B.12, including
but not limited to deleted text begin the following deleted text end :

(1) deleted text begin To sue and be deleted text end new text begin suing and being new text end sued in the name of the facility and deleted text begin to deleted text end assess each
member in accord with its participation ratio to pay any judgment against the facility as an
entity, provided, however, that no judgment against the facility shall create any liabilities
in one or more members disproportionate to their participation ratio or an individual
representing members on the governing committee deleted text begin . deleted text end new text begin ;
new text end

(2) deleted text begin To delegate deleted text end new text begin delegating new text end ministerial duties, deleted text begin to hire deleted text end new text begin hiring new text end a manager new text begin , new text end and deleted text begin to contract deleted text end new text begin
contracting new text end for goods and services from others deleted text begin . deleted text end new text begin ;
new text end

(3) deleted text begin To assess deleted text end new text begin assessing new text end members on the basis of participation ratios to cover anticipated
costs of operation and administration of the facility deleted text begin . deleted text end new text begin ; and
new text end

(4) deleted text begin To impose deleted text end new text begin imposing new text end limitations on cancellation or nonrenewal by members of
insureds covered pursuant to placement through the facility in addition to the limitations
imposed by chapter 72A and sections 65B.1311 to 65B.21.

Sec. 14.

Minnesota Statutes 2024, section 65B.06, subdivision 1, is amended to read:

Subdivision 1.

Distribution of private passenger, nonfleet auto risks.

With respect
to private passenger, nonfleet automobiles, the facility shall provide for deleted text begin the equitable
distribution of qualified applicants to deleted text end members new text begin to share premium, losses, costs, and expenses new text end
in accordance with the participation ratio deleted text begin or among these insurance companies as selected
under the provisions of the plan of operation deleted text end .

Sec. 15.

Minnesota Statutes 2024, section 65B.06, subdivision 2, is amended to read:

Subd. 2.

Private passenger; nonfleet auto coverage.

With respect to private passenger,
nonfleet automobiles, the facility shall provide for the issuance of policies of automobile
insurance deleted text begin by members deleted text end with coverage as follows:

(1) bodily injury liability and property damage liability coverage in the minimum amounts
specified in section 65B.49, subdivision 3;

(2) uninsured and underinsured motorist coverages as required by section 65B.49,
subdivisions 3a and 4a;

(3) a reasonable selection of higher limits of liability coverage up to $50,000 because
of bodily injury to or death of one person in any one accident and, subject to such limit for
one person, up to $100,000 because of bodily injury to or death of two or more persons in
any one accident, and up to $25,000 because of injury to or destruction of property of others
in any one accident, or higher limits of liability coverage as recommended by the governing
committee and approved by the commissioner;

(4) basic economic loss benefits, as required by section 65B.44, and other optional
coverages as recommended by the governing committee and approved by the commissioner;
and

(5) automobile physical damage coverage, including coverage of loss by collision, subject
to deductible options.

Sec. 16.

Minnesota Statutes 2024, section 65B.06, subdivision 3, is amended to read:

Subd. 3.

Other auto coverage.

With respect to all automobiles not included in
subdivisions 1 and 2, the facility shall provide:

(1) the minimum limits of coverage required by section 65B.49, subdivisions 2, 3, 3a,
and 4a, or higher limits of liability coverage as recommended by the governing committee
and approved by the commissioner;

(2) for the equitable deleted text begin distribution of qualified applicants deleted text end new text begin sharing of premium, losses,
costs, and expenses new text end for this coverage among the members in deleted text begin accord deleted text end new text begin accordance new text end with the
applicable participation ratio deleted text begin , or among these insurance companies as selected under the
provisions of the plan of operation deleted text end ; and

(3) for a school district or contractor transporting school children under contract with a
school district, that amount of automobile liability insurance coverage, not to exceed
$1,000,000, required by the school district by resolution or contract, or that portion of such
$1,000,000 of coverage for which the school district or contractor applies and for which it
is eligible under section 65B.10.

Sec. 17.

Minnesota Statutes 2024, section 65B.10, subdivision 2, is amended to read:

Subd. 2.

Termination of eligibility.

Eligibility for placement through the facility will
terminate if an insured is offered equivalent coverage in the voluntary market at a rate lower
than the facility rate. deleted text begin If the member that is required to provide coverage by the facility makes
such an offer after giving 30 days' advance written notice to the agent of record before
making the offer, the member shall have no further obligation to the agent of record.
deleted text end

Sec. 18.

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. 19. 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 August 1, 2024.
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. 20. new text begin TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY
INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

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

new text begin Subd. 2. new text end

new text begin Membership. new text end

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

new text begin (1) one member appointed by the commissioner of commerce;
new text end

new text begin (2) one member appointed jointly by the speaker of the house and the speaker emerita
of the house;
new text end

new text begin (3) one member appointed jointly by the senate majority leader and the senate minority
leader;
new text end

new text begin (4) one member appointed by the Minnesota Consortium of Community Developers;
new text end

new text begin (5) two members appointed by the Insurance Federation of Minnesota, including one
member with expertise in homeowners insurance and one member with expertise in
commercial insurance;
new text end

new text begin (6) one member appointed by Big I Minnesota;
new text end

new text begin (7) one member appointed by the Minnesota Association of Farm Mutual Insurance
Companies;
new text end

new text begin (8) one member appointed by the Community Associations Institute;
new text end

new text begin (9) one member appointed by the Contractors Association of Minnesota;
new text end

new text begin (10) one member appointed by the Minnesota Multi Housing Association;
new text end

new text begin (11) one member appointed by the Housing Justice Center; and
new text end

new text begin (12) one member appointed by Ceres with expertise in climate risk mitigation and
insurance markets.
new text end

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

new text begin Subd. 3. new text end

new text begin Duties. new text end

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

new text begin (b) The task force must consult with the commissioner of the Housing Finance Agency,
the commissioner of employment and economic development, other relevant state and local
agencies, and key stakeholders in the insurance and housing industries.
new text end

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

new text begin (1) risk mitigation and property resilience to natural hazards, and the effect on insurance
costs;
new text end

new text begin (2) the effect of liability laws on insurance costs and whether tort reform could reduce
costs;
new text end

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

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

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

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

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

new text begin (8) regulatory factors that increase insurance costs or decrease access to insurance
products; and
new text end

new text begin (9) other areas that would strengthen and stabilize the homeowners and commercial
property insurance industry.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The Legislative Coordinating Commission must provide
administrative support to the task force. Upon request of the task force, the commissioners
of commerce, the Housing Finance Agency, and employment and economic development
must provide technical support and expertise.
new text end

new text begin Subd. 5. new text end

new text begin Meetings. new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Report required. new text end

new text begin (a) The task force must submit a report to the commissioners
of commerce, the Housing Finance Agency, and employment and economic development
and the chairs and ranking minority members of the legislative committees having jurisdiction
over the agencies listed in this paragraph by February 15, 2026.
new text end

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

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

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

new text begin (3) make recommendations related to tort reform that could reduce insurance costs;
new text end

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

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

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the report required
under subdivision 6.
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

ARTICLE 4

INSURANCE HOLDING COMPANY SYSTEMS

Section 1.

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. 2.

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. 3.

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. 4.

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. 5.

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 an 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. 6.

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. 7.

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. 8.

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. 9.

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.

(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.

(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.

Sec. 10.

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. 11.

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. 12.

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 commissioner.
The report must be completed in accordance with the NAIC group capital calculation
instructions, which may permit the 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 commissioner, 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 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 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 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 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 by 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 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 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 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 by rule.
new text end

new text begin (d) If the 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
commissioner based on reasonable grounds shown.
new text end

Sec. 13.

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
commissioner, 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 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 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
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 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. 14.

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
commissioner may exempt the ultimate controlling person from filing the annual group
capital calculation if the 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 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 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 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 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 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 commissioner makes a determination pursuant to section 60D.19, subdivision
11b, that differs from the NAIC list, the commissioner must provide thoroughly documented
justification to the NAIC and other states.
new text end

new text begin (d) Upon a determination by the 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 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. 15.

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. 16.

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. 17.

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); 60D.18; 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. 18.

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. 19.

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. 20.

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. 21.

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. 22.

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. 23.

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

ARTICLE 5

MEDICARE SUPPLEMENT INSURANCE

Section 1.

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

Subd. 1b.

Preexisting condition coverage.

new text begin (a) new text end The policy must cover preexisting
conditions during the first six months of coverage if the insured was not diagnosed or treated
for the particular condition during the 90 days immediately preceding the effective date of
coverage.

new text begin (b) The policy must cover preexisting conditions if the insured meets the requirements
under subdivision 1r, paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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

Subd. 1f.

Suspension based on entitlement to medical assistance.

(a) The policy or
certificate must provide that benefits and premiums under the policy or certificate shall be
suspended for any period that may be provided by federal regulation at the request of the
policyholder or certificate holder for the period, not to exceed 24 months, in which the
policyholder or certificate holder has applied for and is determined to be entitled to medical
assistance under title XIX of the Social Security Act, but only if the policyholder or certificate
holder notifies the issuer of the policy or certificate within 90 days after the date the
individual becomes entitled to this assistance.

(b) If suspension occurs and if the policyholder or certificate holder loses entitlement
to this medical assistance, the policy or certificate shall be automatically reinstated, effective
as of the date of termination of this entitlement, if the policyholder or certificate holder
provides notice of loss of the entitlement within 90 days after the date of the loss and pays
the premium attributable to the period, effective as of the date of termination of entitlement.

(c) The policy must provide that upon reinstatement (1) there is no waiting period new text begin if the
enrollee meets the requirements under subdivision 1r, paragraph (c), new text end with respect to treatment
of preexisting conditions, (2) coverage is provided which is substantially equivalent to
coverage in effect before the date of the suspension. If the suspended policy provided
coverage for outpatient prescription drugs, reinstitution of the policy for Medicare Part D
enrollees must be without coverage for outpatient prescription drugs and must otherwise
provide coverage substantially equivalent to the coverage in effect before the date of
suspension, and (3) premiums are classified on terms that are at least as favorable to the
policyholder or certificate holder as the premium classification terms that would have applied
to the policyholder or certificate holder had coverage not been suspended.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 1h.

Limitations on denials, conditions, and pricing of coverage.

new text begin (a) new text end No health
carrier issuing Medicare-related coverage in this state may impose preexisting condition
limitations or otherwise deny or condition the issuance or effectiveness of any such coverage
available for sale in this state, nor may it discriminate in the pricing of such coverage,
because of the health status, claims experience, receipt of health care, medical condition,
or age of an applicant where an application for such coverage is submitted: (1) prior to or
during the six-month period beginning with the first day of the month in which an individual
first enrolled for benefits under Medicare Part B; or (2) during the open enrollment period deleted text begin . deleted text end new text begin
if the applicant:
new text end

new text begin (i) is age 65 to 70 and the applicant is applying for coverage during the open enrollment
period for the first time; and
new text end

new text begin (ii) meets the requirements under subdivision 1r, paragraph (c).
new text end

new text begin (b) Notwithstanding paragraph (a), the premium increases permitted under subdivision
1r are allowed.
new text end

new text begin (c) new text end This subdivision applies to each Medicare-related coverage offered by a health carrier
regardless of whether the individual has attained the age of 65 years.

new text begin (d) new text end If an individual who is enrolled in Medicare Part B due to disability status is
involuntarily disenrolled due to loss of disability status, the individual is eligible for another
six-month enrollment period provided under this subdivision beginning the first day of the
month in which the individual later becomes eligible for and enrolls again in Medicare Part
B and during the open enrollment period. An individual who is or was previously enrolled
in Medicare Part B due to disability status is eligible for another six-month enrollment
period under this subdivision beginning the first day of the month in which the individual
has attained the age of 65 years and either maintains enrollment in, or enrolls again in,
Medicare Part B deleted text begin and during the open enrollment period deleted text end . If an individual enrolled in Medicare
Part B voluntarily disenrolls from Medicare Part B because the individual becomes enrolled
under an employee welfare benefit plan, the individual is eligible for another six-month
enrollment period, as provided in this subdivision, beginning the first day of the month in
which the individual later becomes eligible for and enrolls again in Medicare Part B deleted text begin and
during the open enrollment period deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subd. 1p.

Renewal or continuation provisions.

new text begin (a) new text end Medicare supplement policies and
certificates shall include a renewal or continuation provision. The language or specifications
of the provision shall be consistent with the type of contract issued. The provision shall be
appropriately captioned and shall appear on the first page of the policy or certificate, and
shall include any reservation by the issuer of the right to change premiums. Except for riders
or endorsements by which the issuer effectuates a request made in writing by the insured,
exercises a specifically reserved right under a Medicare supplement policy or certificate,
or is required to reduce or eliminate benefits to avoid duplication of Medicare benefits, all
riders or endorsements added to a Medicare supplement policy or certificate after the date
of issue or at reinstatement or renewal that reduce or eliminate benefits or coverage in the
policy or certificate shall require a signed acceptance by the insured. After the date of policy
or certificate issue, a rider or endorsement that increases benefits or coverage with a
concomitant increase in premium during the policy or certificate term shall be agreed to in
writing and signed by the insured, unless the benefits are required by the minimum standards
for Medicare supplement policies or if the increased benefits or coverage is required by
law. Where a separate additional premium is charged for benefits provided in connection
with riders or endorsements, the premium charge shall be set forth in the policy, declaration
page, or certificate. new text begin If a Medicare supplement policy or certificate contains limitations with
respect to preexisting conditions, the limitations must appear as a separate paragraph of the
policy or certificate and be labeled as "preexisting condition limitations."
new text end

new text begin (b) new text end Issuers of accident and sickness policies or certificates that provide hospital or medical
expense coverage on an expense incurred or indemnity basis to persons eligible for Medicare
shall provide to those applicants a "Guide to Health Insurance for People with Medicare"
in the form developed by the Centers for Medicare and Medicaid Services and in a type
size no smaller than 12-point type. Delivery of the guide must be made whether or not such
policies or certificates are advertised, solicited, or issued as Medicare supplement policies
or certificates as defined in this section and section 62A.3099. Except in the case of direct
response issuers, delivery of the guide must be made to the applicant at the time of
application, and acknowledgment of receipt of the guide must be obtained by the issuer.
Direct response issuers shall deliver the guide to the applicant upon request, but no later
than the time at which the policy is delivered.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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. deleted text begin Beginning January 1, 1993, deleted text end 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) for coverage that supplements Medicare, premium increases on an individual who
enrolls in a Medicare supplement policy outside of the individual's initial enrollment period
in Medicare Part B. This paragraph does not apply to individuals who enroll in a Medicare
supplement policy pursuant to subdivision 1u, paragraph (b), clauses (1) to (8). The increases
described in paragraph (c) apply each year an individual is enrolled in a Medicare supplement
policy and are in addition to any standard increases in community rate.
new text end

new text begin (c) The premium increases permitted under paragraph (b), clause (4):
new text end

new text begin (1) apply to an individual age 65 to 70;
new text end

new text begin (2) apply to an individual who enrolls in a Medicare supplement policy pursuant to
subdivision 1h, paragraph (a), clause (2);
new text end

new text begin (3) apply only the first time the individual enrolls;
new text end

new text begin (4) apply for the duration of time the policy is in force; and
new text end

new text begin (5) must equal:
new text end

new text begin (i) for an individual who enrolls during the 2026 open enrollment period, 15 percent;
new text end

new text begin (ii) for an individual who enrolls during the 2027 open enrollment period, 20 percent;
new text end

new text begin (iii) for an individual who enrolls during the 2028 open enrollment period, 25 percent;
new text end

new text begin (iv) for an individual who enrolls during the 2029 open enrollment period, 30 percent;
new text end

new text begin (v) for an individual who enrolls during the 2030 open enrollment period, 35 percent;
and
new text end

new text begin (vi) for an individual who enrolls during an open enrollment period after 2029, 35 percent.
new text end

new text begin If an individual age 65 to 70 enrolls in a subsequent Medicare supplement policy that is not
a replacement or renewal, the individual is not subject to the premium increases as described
in paragraph (b), clause (4).
new text end

deleted text begin 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 end

deleted text begin (i) 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 end

deleted text begin (ii) with respect to any person whose premium adjustment was constrained under clause
(i), 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 (i).
deleted text end

deleted text begin 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 clause (i) may take the constraint into account in establishing its community
rate.
deleted text end

deleted text begin 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.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

Subd. 1u.

Guaranteed issue for eligible persons.

(a)(1) Eligible persons are those
individuals described in paragraph (b) who seek to enroll under the policy during the period
specified in paragraph (c) and who submit evidence of the date of termination or
disenrollment described in paragraph (b), or of the date of Medicare Part D enrollment, with
the application for a Medicare supplement policy.

(2) With respect to eligible persons, an issuer shall not: deny or condition the issuance
or effectiveness of a Medicare supplement policy described in paragraph (c) that is offered
and is available for issuance to new enrollees by the issuer; discriminate in the pricing of
such a Medicare supplement policy because of health status, claims experience, receipt of
health care, medical condition, or age; or impose an exclusion of benefits based upon a
preexisting condition under such a Medicare supplement policy.

(b) An eligible person is an individual described in any of the following:

(1) the individual is enrolled under an employee welfare benefit plan that provides health
benefits that supplement the benefits under Medicare; and the plan terminates, or the plan
ceases to provide all such supplemental health benefits to the individual;

(2) the individual is enrolled with a Medicare Advantage organization under a Medicare
Advantage plan under Medicare Part C, and any of the following circumstances apply, or
the individual is 65 years of age or older and is enrolled with a Program of All-Inclusive
Care for the Elderly (PACE) provider under section 1894 of the federal Social Security Act,
and there are circumstances similar to those described in this clause that would permit
discontinuance of the individual's enrollment with the provider if the individual were enrolled
in a Medicare Advantage plan:

(i) the organization's or plan's certification under Medicare Part C has been terminated
or the organization has terminated or otherwise discontinued providing the plan in the area
in which the individual resides;

(ii) the individual is no longer eligible to elect the plan because of a change in the
individual's place of residence or other change in circumstances specified by the secretary,
but not including termination of the individual's enrollment on the basis described in section
1851(g)(3)(B) of the federal Social Security Act, United States Code, title 42, section
1395w-21(g)(3)(b) (where the individual has not paid premiums on a timely basis or has
engaged in disruptive behavior as specified in standards under section 1856 of the federal
Social Security Act, United States Code, title 42, section 1395w-26), or the plan is terminated
for all individuals within a residence area;

(iii) the individual demonstrates, in accordance with guidelines established by the
Secretary, that:

(A) the organization offering the plan substantially violated a material provision of the
organization's contract in relation to the individual, including the failure to provide an
enrollee on a timely basis medically necessary care for which benefits are available under
the plan or the failure to provide such covered care in accordance with applicable quality
standards; or

(B) the organization, or agent or other entity acting on the organization's behalf, materially
misrepresented the plan's provisions in marketing the plan to the individual; or

(iv) the individual meets such other exceptional conditions as the secretary may provide;

(3)(i) the individual is enrolled with:

(A) an eligible organization under a contract under section 1876 of the federal Social
Security Act, United States Code, title 42, section 1395mm (Medicare cost);

(B) a similar organization operating under demonstration project authority, effective for
periods before April 1, 1999;

(C) an organization under an agreement under section 1833(a)(1)(A) of the federal Social
Security Act, United States Code, title 42, section 1395l(a)(1)(A) (health care prepayment
plan); or

(D) an organization under a Medicare Select policy under section 62A.318 or the similar
law of another state; and

(ii) the enrollment ceases under the same circumstances that would permit discontinuance
of an individual's election of coverage under clause (2);

(4) the individual is enrolled under a Medicare supplement policy, and the enrollment
ceases because:

(i)(A) of the insolvency of the issuer or bankruptcy of the nonissuer organization; or

(B) of other involuntary termination of coverage or enrollment under the policy;

(ii) the issuer of the policy substantially violated a material provision of the policy; or

(iii) the issuer, or an agent or other entity acting on the issuer's behalf, materially
misrepresented the policy's provisions in marketing the policy to the individual;

(5)(i) the individual was enrolled under a Medicare supplement policy and terminates
that enrollment and subsequently enrolls, for the first time, with any Medicare Advantage
organization under a Medicare Advantage plan under Medicare Part C; any eligible
organization under a contract under section 1876 of the federal Social Security Act, United
States Code, title 42, section 1395mm (Medicare cost); any similar organization operating
under demonstration project authority; any PACE provider under section 1894 of the federal
Social Security Act, or a Medicare Select policy under section 62A.318 or the similar law
of another state; and

(ii) the subsequent enrollment under item (i) is terminated by the enrollee during any
period within the first 12 months of the subsequent enrollment during which the enrollee
is permitted to terminate the subsequent enrollment under section 1851(e) of the federal
Social Security Act;

(6) the individual, upon first enrolling for benefits under Medicare Part B, enrolls in a
Medicare Advantage plan under Medicare Part C, or with a PACE provider under section
1894 of the federal Social Security Act, and disenrolls from the plan by not later than 12
months after the effective date of enrollment;

(7) the individual enrolls in a Medicare Part D plan during the initial Part D enrollment
period, as defined under United States Code, title 42, section 1395ss(v)(6)(D), and, at the
time of enrollment in Part D, was enrolled under a Medicare supplement policy that covers
outpatient prescription drugs and the individual terminates enrollment in the Medicare
supplement policy and submits evidence of enrollment in Medicare Part D along with the
application for a policy described in paragraph (e), clause (4); deleted text begin or
deleted text end

(8) the individual was enrolled in a state public program and is losing coverage due to
the unwinding of the Medicaid continuous enrollment conditions, as provided by Code of
Federal Regulations, title 45, section 155.420 (d)(9) and (d)(1), and Public Law 117-328,
section 5131 (2022) deleted text begin . deleted text end new text begin ; or
new text end

new text begin (9) the individual meets the requirements under subdivision 1r, paragraph (c), and enrolls
during the open enrollment period.
new text end

(c)(1) In the case of an individual described in paragraph (b), clause (1), the guaranteed
issue period begins on the later of: (i) the date the individual receives a notice of termination
or cessation of all supplemental health benefits or, if a notice is not received, notice that a
claim has been denied because of a termination or cessation; or (ii) the date that the applicable
coverage terminates or ceases; and ends 63 days after the later of those two dates.

(2) In the case of an individual described in paragraph (b), clause (2), (3), (5), or (6),
whose enrollment is terminated involuntarily, the guaranteed issue period begins on the
date that the individual receives a notice of termination and ends 63 days after the date the
applicable coverage is terminated.

(3) In the case of an individual described in paragraph (b), clause (4), item (i), the
guaranteed issue period begins on the earlier of: (i) the date that the individual receives a
notice of termination, a notice of the issuer's bankruptcy or insolvency, or other such similar
notice if any; and (ii) the date that the applicable coverage is terminated, and ends on the
date that is 63 days after the date the coverage is terminated.

(4) In the case of an individual described in paragraph (b), clause (2), (4), (5), or (6),
who disenrolls voluntarily, the guaranteed issue period begins on the date that is 60 days
before the effective date of the disenrollment and ends on the date that is 63 days after the
effective date.

(5) In the case of an individual described in paragraph (b), clause (7), the guaranteed
issue period begins on the date the individual receives notice pursuant to section
1882(v)(2)(B) of the Social Security Act from the Medicare supplement issuer during the
60-day period immediately preceding the initial Part D enrollment period and ends on the
date that is 63 days after the effective date of the individual's coverage under Medicare Part
D.

(6) In the case of an individual described in paragraph (b) but not described in this
paragraph, the guaranteed issue period begins on the effective date of disenrollment and
ends on the date that is 63 days after the effective date.

(7) deleted text begin For all individuals described in paragraph (b), the open enrollment period is a
guaranteed issue period. deleted text end new text begin For an individual described in paragraph (b), clause (9), the
guarantee issue period is the open enrollment period.
new text end

(d)(1) In the case of an individual described in paragraph (b), clause (5), or deemed to
be so described, pursuant to this paragraph, whose enrollment with an organization or
provider described in paragraph (b), clause (5), item (i), is involuntarily terminated within
the first 12 months of enrollment, and who, without an intervening enrollment, enrolls with
another such organization or provider, the subsequent enrollment is deemed to be an initial
enrollment described in paragraph (b), clause (5).

(2) In the case of an individual described in paragraph (b), clause (6), or deemed to be
so described, pursuant to this paragraph, whose enrollment with a plan or in a program
described in paragraph (b), clause (6), is involuntarily terminated within the first 12 months
of enrollment, and who, without an intervening enrollment, enrolls in another such plan or
program, the subsequent enrollment is deemed to be an initial enrollment described in
paragraph (b), clause (6).

(3) For purposes of paragraph (b), clauses (5) and (6), no enrollment of an individual
with an organization or provider described in paragraph (b), clause (5), item (i), or with a
plan or in a program described in paragraph (b), clause (6), may be deemed to be an initial
enrollment under this paragraph after the two-year period beginning on the date on which
the individual first enrolled with the organization, provider, plan, or program.

(e) The Medicare supplement policy to which eligible persons are entitled under:

(1) paragraph (b), clauses (1) to (4), is any Medicare supplement policy that has a benefit
package consisting of the basic Medicare supplement plan described in section 62A.316,
paragraph (a), plus any combination of the three optional riders described in section 62A.316,
paragraph (b), clauses (1) to (3), offered by any issuer;

(2) paragraph (b), clause (5), is the same Medicare supplement policy in which the
individual was most recently previously enrolled, if available from the same issuer, or, if
not so available, any policy described in clause (1) offered by any issuer, except that after
December 31, 2005, if the individual was most recently enrolled in a Medicare supplement
policy with an outpatient prescription drug benefit, a Medicare supplement policy to which
the individual is entitled under paragraph (b), clause (5), is:

(i) the policy available from the same issuer but modified to remove outpatient
prescription drug coverage; or

(ii) at the election of the policyholder, a policy described in clause (4), except that the
policy may be one that is offered and available for issuance to new enrollees that is offered
by any issuer;

(3) paragraph (b), clause (6), is any Medicare supplement policy offered by any issuer;

(4) paragraph (b), clause (7), is a Medicare supplement policy that has a benefit package
classified as a basic plan under section 62A.316 if the enrollee's existing Medicare
supplement policy is a basic plan or, if the enrollee's existing Medicare supplement policy
is an extended basic plan under section 62A.315, a basic or extended basic plan at the option
of the enrollee, provided that the policy is offered and is available for issuance to new
enrollees by the same issuer that issued the individual's Medicare supplement policy with
outpatient prescription drug coverage. The issuer must permit the enrollee to retain all
optional benefits contained in the enrollee's existing coverage, other than outpatient
prescription drugs, subject to the provision that the coverage be offered and available for
issuance to new enrollees by the same issuer.

(f)(1) At the time of an event described in paragraph (b), because of which an individual
loses coverage or benefits due to the termination of a contract or agreement, policy, or plan,
the organization that terminates the contract or agreement, the issuer terminating the policy,
or the administrator of the plan being terminated, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated
contemporaneously with the notification of termination.

(2) At the time of an event described in paragraph (b), because of which an individual
ceases enrollment under a contract or agreement, policy, or plan, the organization that offers
the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer
offering the policy, or the administrator of the plan, respectively, shall notify the individual
of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
supplement policies under paragraph (a). The notice must be communicated within ten
working days of the issuer receiving notification of disenrollment.

(g) Reference in this subdivision to a situation in which, or to a basis upon which, an
individual's coverage has been terminated does not provide authority under the laws of this
state for the termination in that situation or upon that basis.

(h) An individual's rights under this subdivision are in addition to, and do not modify
or limit, the individual's rights under subdivision 1h.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2024, section 62A.31, subdivision 4, is amended to read:

Subd. 4.

Prohibited policy provisions.

(a) A Medicare supplement policy or certificate
in force in the state shall not contain benefits that duplicate benefits provided by Medicare
or contain exclusions on coverage that are more restrictive than those of Medicare.
Duplication of benefits is permitted to the extent permitted under subdivision 1s, paragraph
(a), for benefits provided by Medicare Part D.

(b) No Medicare supplement policy or certificate may use waivers to exclude, limit, or
reduce coverage or benefits for specifically named or described preexisting diseases or
physical conditions new text begin , except as permitted under subdivision 1h new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2024, section 62A.44, subdivision 2, is amended to read:

Subd. 2.

Questions.

(a) Application forms shall include the following questions designed
to elicit information as to whether, as of the date of the application, the applicant has another
Medicare supplement or other health insurance policy or certificate in force or whether a
Medicare supplement policy or certificate is intended to replace any other accident and
sickness policy or certificate presently in force. A supplementary application or other form
to be signed by the applicant and agent containing the questions and statements may be
used.

"(1) You do not need more than one Medicare supplement policy or certificate.

(2) If you purchase this policy, you may want to evaluate your existing health coverage
and decide if you need multiple coverages.

(3) You may be eligible for benefits under Medicaid and may not need a Medicare
supplement policy or certificate.

(4) The benefits and premiums under your Medicare supplement policy or certificate
can be suspended, if requested, during your entitlement to benefits under Medicaid for
24 months. You must request this suspension within 90 days of becoming eligible for
Medicaid. If you are no longer entitled to Medicaid, your policy or certificate will be
reinstated if requested within 90 days of losing Medicaid eligibility.

(5) Counseling services may be available in Minnesota to provide advice concerning
medical assistance through state Medicaid, Qualified Medicare Beneficiaries (QMBs),
and Specified Low-Income Medicare Beneficiaries (SLMBs).

To the best of your knowledge:

(1) Do you have another Medicare supplement policy or certificate in force?

(a) If so, with which company?

(b) If so, do you intend to replace your current Medicare supplement policy with this
policy or certificate?

(2) Do you have any other health insurance policies that provide benefits which this
Medicare supplement policy or certificate would duplicate?

(a) If so, please name the company.

(b) What kind of policy?

(3) Are you covered for medical assistance through the state Medicaid program? If so,
which of the following programs provides coverage for you?

(a) Specified Low-Income Medicare Beneficiary (SLMB),

(b) Qualified Medicare Beneficiary (QMB), or

(c) full Medicaid Beneficiary?"

(b) Agents shall list any other health insurance policies they have sold to the applicant.

(1) List policies sold that are still in force.

(2) List policies sold in the past five years that are no longer in force.

(c) In the case of a direct response issuer, a copy of the application or supplemental
form, signed by the applicant, and acknowledged by the insurer, shall be returned to the
applicant by the insurer on delivery of the policy or certificate.

(d) Upon determining that a sale will involve replacement of Medicare supplement
coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the
applicant, before issuance or delivery of the Medicare supplement policy or certificate, a
notice regarding replacement of Medicare supplement coverage. One copy of the notice
signed by the applicant and the agent, except where the coverage is sold without an agent,
shall be provided to the applicant and an additional signed copy shall be retained by the
issuer. A direct response issuer shall deliver to the applicant at the time of the issuance of
the policy or certificate the notice regarding replacement of Medicare supplement coverage.

(e) The notice required by paragraph (d) for an issuer shall be provided in substantially
the following form in no less than 12-point type:

"NOTICE TO APPLICANT REGARDING REPLACEMENT

OF MEDICARE SUPPLEMENT INSURANCE

(Insurance company's name and address)

SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.

According to (your application) (information you have furnished), you intend to terminate
existing Medicare supplement insurance and replace it with a policy or certificate to be
issued by (Company Name) Insurance Company. Your new policy or certificate will provide
30 days within which you may decide without cost whether you desire to keep the policy
or certificate.

You should review this new coverage carefully. Compare it with all accident and sickness
coverage you now have. If, after due consideration, you find that purchase of this Medicare
supplement coverage is a wise decision you should terminate your present Medicare
supplement policy. You should evaluate the need for other accident and sickness coverage
you have that may duplicate this policy.

STATEMENT TO APPLICANT BY ISSUER, AGENT, (BROKER OR OTHER
REPRESENTATIVE): I have reviewed your current medical or health insurance
coverage. To the best of my knowledge this Medicare supplement policy will not duplicate
your existing Medicare supplement policy because you intend to terminate the existing
Medicare supplement policy. The replacement policy or certificate is being purchased
for the following reason(s) (check one):

	.	Additional benefits
	.	No change in benefits, but lower premiums
	.	Fewer benefits and lower premiums
	.	Other (please specify)
	.
	.
	.

new text begin (1) Health conditions which you may presently have (preexisting conditions) may not
be immediately or fully covered under the new policy or certificate. This could result
in denial or delay of a claim for benefits under the new policy or certificate, whereas a
similar claim might have been payable under your present policy or certificate.
new text end

new text begin (2) State law provides that your replacement policy or certificate may not contain new
preexisting conditions, waiting periods, elimination periods, or probationary periods.
The insurer will waive any time periods applicable to preexisting conditions, waiting
periods, elimination periods, or probationary periods in the new policy (or coverage)
for similar benefits to the extent the time was spent (depleted) under the original policy
or certificate.
new text end

new text begin (3) If you still wish to terminate your present policy or certificate and replace it with
new coverage, be certain to truthfully and completely answer all questions on the
application concerning your medical and health history. Failure to include all material
medical information on an application may provide a basis for the company to deny any
future claims and to refund your premium as though your policy or certificate had never
been in force. After the application has been completed and before you sign it, review
it carefully to be certain that all information has been properly recorded. (If the policy
or certificate is guaranteed issue, this paragraph need not appear.)
new text end

Do not cancel your present policy or certificate until you have received your new policy
or certificate and you are sure that you want to keep it.

	.
	(Signature of Agent, Broker, or Other Representative)*
	.
	(Typed Name and Address of Issuer, Agent, or Broker)
	.
	(Date)
	.
	(Applicant's Signature)
	.
	(Date)

*Signature not required for direct response sales."

new text begin (f) Paragraph (e), clauses (1) and (2), of the replacement notice (applicable to preexisting
conditions) may be deleted by an issuer if the replacement does not involve application of
a new preexisting condition limitation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin REPEALER.
new text end

new text begin Laws 2023, chapter 57, article 2, sections 13, as amended by Laws 2024, chapter 114,
article 6, section 7; and 66, as amended by Laws 2025, chapter 20, section 290, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

REINSURANCE

Section 1.

Minnesota Statutes 2024, section 60A.052, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The commissioner may by order take any or all of the following
actions: (a) deny, suspend, or revoke a certificate of authority; (b) censure the insurance
company; (c) impose a civil penalty as provided for in section 45.027, subdivision 6; or (d)
under a written agreement with the insurance company based upon the company's financial
condition, impose conditions or restrictions on the insurance company's authority to transact
business in Minnesota. In order to take this action the commissioner must find that the order
is in the public interest, and the insurance company:

(1) has a board of directors or principal management that is incompetent, untrustworthy,
or so lacking in insurance company managerial experience as to make its operation hazardous
to policyholders, its stockholders, or to the insurance buying public;

(2) is controlled directly or indirectly through ownership, management, reinsurance
transactions, or other business relations by any person or persons whose business operations
are or have been marked by manipulation of any assets, reinsurance, or accounts as to create
a hazard to the company's policyholders, stockholders, or the insurance buying public;

(3) is in an unsound or unsafe condition;

(4) has the actual liabilities that exceed the actual funds of the company;

(5) has filed an application for a license which is incomplete in any material respect or
contains any statement which, in light of the circumstances under which it was made,
contained any misrepresentation or was false, misleading, or fraudulent;

(6) has pled guilty, with or without explicitly admitting guilt, pled nolo contendere, or
been convicted of a felony, gross misdemeanor, or misdemeanor involving moral turpitude,
or similar conduct;

(7) is permanently or temporarily enjoined by any court of competent jurisdiction from
engaging in or continuing any conduct or practice involving any aspect of the insurance
business;

(8) has violated or failed to comply with any order of the insurance regulator of any
other state or jurisdiction;

(9) has had a certificate of authority denied, suspended, or revoked, has been censured
or reprimanded, has been the subject of any other discipline imposed by, or has paid or has
been required to pay a monetary penalty or fine to, another state;

(10) agents, officers, or directors refuse to submit to examination or perform any related
legal obligation; deleted text begin or
deleted text end

(11) has violated or failed to comply with, any of the provisions of the insurance laws
including chapter 45 or chapters 60A to 72A or any rule or order under those chapters new text begin ; or
new text end

new text begin (12) has failed to pay the assessment imposed under section 62E.23, subdivision 1a new text end .

Sec. 2.

Minnesota Statutes 2024, section 62E.21, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Assessment. new text end

new text begin "Assessment" means the amount a group health carrier must pay
to the association under section 62E.23, subdivision 1a.
new text end

Sec. 3.

Minnesota Statutes 2024, section 62E.21, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Group health carrier. new text end

new text begin "Group health carrier" means any of the following that
offer a group health plan, as defined in section 62A.011, subdivision 1c:
new text end

new text begin (1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of
accident and sickness insurance, as defined in section 62A.01;
new text end

new text begin (2) a nonprofit health service plan corporation operating under chapter 62C; or
new text end

new text begin (3) a health maintenance organization operating under chapter 62D.
new text end

Sec. 4.

Minnesota Statutes 2024, section 62E.23, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin 2028 assessment on group health carriers. new text end

new text begin (a) An assessment is imposed in
calendar year 2028 on group health carriers operating under the Minnesota premium security
plan in benefit year 2027. This is a onetime assessment.
new text end

new text begin (b) By May 1, 2028, the association must provide each group health carrier with an
estimate of the carrier's assessment under paragraph (a).
new text end

new text begin (c) By June 30, 2028, the association must notify each group health carrier of the carrier's
assessment amount under paragraph (a). The association must determine each carrier's
assessment amount, in consultation with the commissioner, based on the group health
carrier's portion of the total premiums for group health plans written in Minnesota for benefit
year 2027. The association must establish the assessment amount for each group health plan
so that the aggregate assessment amount collected from group health plans under this
subdivision equals the amount necessary for the appropriations and transfers under section
62E.25, subdivision 1.
new text end

new text begin (d) Subject to paragraph (e), each group health carrier must pay the assessment under
paragraph (a) to the association by August 1, 2028. A group health plan must pay the
assessment in the manner determined by the commissioner.
new text end

new text begin (e) A group health carrier may apply to the commissioner to defer all or part of the
assessment imposed under paragraph (a). The application must be submitted to the
commissioner by May 15, 2028. The commissioner may defer all or part of the assessment
if the commissioner determines the payment of the assessment places the group health
carrier in a financially impaired condition. The commissioner may deny an application for
deferral under this paragraph. No later than June 15, 2028, the commissioner must notify
the association and the group health carrier whether the assessment deferral is approved or
denied. If the commissioner approves the deferral request, the notice must include the amount
of and due date for the deferred portion of the assessment. If all or part of the assessment
is deferred, the association must include the amount deferred in the other group health
carriers' assessments in a proportionate manner consistent with this subdivision. The group
health carrier that receives a deferral is liable to the association for the amount deferred and
is prohibited from receiving or becoming entitled to a reinsurance payment under the
Minnesota premium security plan until the group health carrier has paid the deferred
assessment.
new text end

new text begin (f) If the association determines the assessment imposed under paragraph (a) exceeds
or is less than the amount necessary to operate and administer the Minnesota premium
security plan and issue reinsurance payments, the association must require group health
carriers to pay an additional amount or the association must issue a refund to the group
health carriers. The association must determine the accuracy of the assessment by May 30,
2029.
new text end

new text begin (g) By August 15, 2028, the association must remit the assessments collected under this
subdivision to the commissioner for deposit in the premium security plan account created
under section 62E.25.
new text end

Sec. 5.

Minnesota Statutes 2024, section 62E.23, subdivision 2, is amended to read:

Subd. 2.

Payment parameters.

(a) The board must design and adjust the payment
parameters to ensure the payment parameters:

(1) will stabilize or reduce premium rates in the individual market;

(2) will increase participation in the individual market;

(3) will improve access to health care providers and services for those in the individual
market;

(4) mitigate the impact high-risk individuals have on premium rates in the individual
market;

(5) take into account any federal funding available for the plan; deleted text begin and
deleted text end

new text begin (6) for benefit year 2027, take into account the assessment under subdivision 1a;
new text end

new text begin (7) ensure the premium security plan account created under section 62E.25, subdivision
1, has sufficient money to ensure MNsure's stable operation after taking into account the
Minnesota premium security plan's effect on MNsure's funding; and
new text end

deleted text begin (6) deleted text end new text begin (8) new text end take into account the total amount available to fund the plan.

(b) The attachment point for the plan is the threshold amount for claims costs incurred
by an eligible health carrier for an enrolled individual's covered benefits in a benefit year,
beyond which the claims costs for benefits are eligible for reinsurance payments. The
attachment point shall be set by the board at $50,000 or more, but not exceeding the
reinsurance cap.

(c) The coinsurance rate for the plan is the rate at which the association will reimburse
an eligible health carrier for claims incurred for an enrolled individual's covered benefits
in a benefit year above the attachment point and below the reinsurance cap. The coinsurance
rate shall be set by the board at a rate between 50 and 80 percent.

(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible
health carrier for an enrolled individual's covered benefits, after which the claims costs for
benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set
by the board at $250,000 or less.

(e) The board may adjust the payment parameters to the extent necessary to secure
federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1,
section 8.

new text begin (f) For purposes of paragraph (a), clause (7), the association must consult with the
commissioner of management and budget and the board of directors of MNsure to determine
the amount of funding necessary to ensure MNsure's stable operation.
new text end

Sec. 6.

Minnesota Statutes 2024, section 62E.23, subdivision 3, is amended to read:

Subd. 3.

Operation.

(a) The board shall propose to the commissioner the payment
parameters for the next benefit year by January 15 of the year before the applicable benefit
year. The commissioner shall approve or reject the payment parameters no later than 14
days following the board's proposal. If the commissioner fails to approve or reject the
payment parameters within 14 days following the board's proposal, the proposed payment
parameters are final and effective.

(b) If the amount in the premium security plan account in section 62E.25, subdivision
1, is not anticipated to be adequate to fully fund the approved payment parameters as of
July 1 of the year before the applicable benefit year, the board, in consultation with the
commissioner and the commissioner of management and budget, shall propose payment
parameters within the available appropriations new text begin or, for benefit year 2027, assess group health
carriers to obtain the necessary funding new text end . The commissioner must permit an eligible health
carrier to revise an applicable rate filing based on the final payment parameters for the next
benefit year.

(c) Notwithstanding paragraph (a), the payment parameters for benefit years 2023 through
2027 are:

(1) an attachment point of $50,000;

(2) a coinsurance rate of 80 percent; and

(3) a reinsurance cap of $250,000.

Sec. 7.

Minnesota Statutes 2024, section 62E.23, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Group health carrier records; audit. new text end

new text begin (a) A group health carrier must maintain
documents and records, whether paper, electronic, or in other media, sufficient to substantiate
the amount assessed, paid, or deferred under subdivision 1a. The documents and records
must be maintained for at least six years. A group health carrier must make documents and
records maintained under this subdivision available to the commissioner upon the
commissioner's request.
new text end

new text begin (b) Effective January 1, 2028, the association may have a group health carrier audited
to assess the carrier's compliance with this section. The group health carrier must ensure
that the group health carrier's contractors, subcontractors, and agents cooperate with any
audit under this paragraph.
new text end

Sec. 8.

Minnesota Statutes 2024, section 62E.24, subdivision 1, is amended to read:

Subdivision 1.

Accounting.

The board must keep an accounting for each benefit year
of all:

(1) funds appropriated for reinsurance payments and administrative and operational
expenses;

(2) requests for reinsurance payments received from eligible health carriers;

new text begin (3) for benefit year 2027, assessments collected and deferred under section 62E.23,
subdivision 1a;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end reinsurance payments made to eligible health carriers; and

deleted text begin (4) deleted text end new text begin (5) new text end administrative and operational expenses incurred for the plan.

Sec. 9.

Minnesota Statutes 2024, section 62E.24, subdivision 2, is amended to read:

Subd. 2.

Reports.

(a) The board must submit to the commissioner and to the chairs and
ranking minority members of the legislative committees with jurisdiction over commerce
and health and make available to the public quarterly reports on plan operations and an
annual report summarizing the plan operations for each benefit year. All reports must be
made public by posting the report on the Minnesota Comprehensive Health Association
website. The annual summary must be made available by November 1 of the year following
the applicable benefit year or 60 calendar days following the final disbursement of
reinsurance payments for the applicable benefit year, whichever is later.

(b) The reports must include information about:

(1) the reinsurance parameters used;

(2) the metal levels affected;

(3) the number of claims payments estimated and submitted for payment per products
offered on-exchange and off-exchange and per eligible health carrier;

(4) the estimated reinsurance payments by plan type based on carrier-submitted templates;

(5) funds appropriated for reinsurance payments and administrative and operational
expenses for each year, including new text begin : (i) new text end the federal and state contributions received deleted text begin , deleted text end new text begin ; (ii) new text end
investment income deleted text begin , deleted text end new text begin ; (iii) for benefit year 2027, assessments collected under section 62E.23,
subdivision 1a; new text end and new text begin (iv) new text end any other revenue or funds received;

(6) the total amount of reinsurance payments made to each eligible health carrier; and

(7) administrative and operational expenses incurred for the plan, including the total
amount incurred and as a percentage of the plan's operational budget.

Sec. 10.

Minnesota Statutes 2024, section 62E.25, subdivision 1, is amended to read:

Subdivision 1.

Premium security plan account.

new text begin (a) new text end The premium security plan account
is created in the special revenue fund of the state treasury.

new text begin (b) new text end Funds in the account are appropriated annually to the commissioner of commerce
for grants to the Minnesota Comprehensive Health Association for the operational and
administrative costs and reinsurance payments relating to the deleted text begin start-up and deleted text end operation of the
Minnesota premium security plan. Notwithstanding section 11A.20, all investment income
and all investment losses attributable to the investment of the premium security plan account
shall be credited to the premium security plan account.

new text begin (c) The commissioner of commerce must annually transfer the amount determined by
the association under section 62E.23, subdivision 2, paragraph (a), clause (7), from the
premium security plan account to the MNsure account established in section 62V.07.
new text end

new text begin (d) Federal funds received for the Minnesota premium security plan must not be used
for the transfer under paragraph (c).
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. 11.

Minnesota Statutes 2024, section 62V.06, subdivision 5, is amended to read:

Subd. 5.

Data sharing.

(a) MNsure may share or disseminate data classified as private
or nonpublic in subdivision 3 as follows:

(1) to the subject of the data, as provided in section 13.04;

(2) according to a court order;

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to verify the identity
of, determine the eligibility of, process premiums for, process enrollment of, or investigate
fraud related to an individual, employer, or employee participating in MNsure, provided
that MNsure must enter into a data-sharing agreement with the agency prior to sharing data
under this clause; deleted text begin and
deleted text end

(5) with a nongovernmental person or entity, only to the extent necessary to verify the
identity of, determine the eligibility of, process premiums for, process enrollment of, or
investigate fraud related to an individual, employer, or employee participating in MNsure,
provided that MNsure must enter into a contract with the person or entity, as provided in
section 13.05, subdivision 6 or 11, prior to disseminating data under this clause deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) with the Department of Revenue, as necessary, to implement the reinsurance credit
under section 297I.20.
new text end

(b) MNsure may share or disseminate data classified as private or nonpublic in subdivision
4 as follows:

(1) to the subject of the data, as provided in section 13.04;

(2) according to a court order;

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to carry out the
functions of MNsure, provided that MNsure must enter into a data-sharing agreement with
the agency prior to sharing data under this clause; and

(5) with a nongovernmental person or entity, only to the extent necessary to carry out
the functions of MNsure, provided that MNsure must enter a contract with the person or
entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating data under
this clause.

(c) Sharing or disseminating data outside of MNsure in a manner not authorized by this
subdivision is prohibited. The list of authorized dissemination and sharing contained in this
subdivision must be included in the Tennessen warning required by section 13.04, subdivision
2.

(d) Until July 1, 2014, state agencies must share data classified as private or nonpublic
on individuals, employees, or employers participating in MNsure with MNsure, only to the
extent such data are necessary to verify the identity of, determine the eligibility of, process
premiums for, process enrollment of, or investigate fraud related to a MNsure participant.
The agency must enter into a data-sharing agreement with MNsure prior to sharing any data
under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2029.
new text end

Sec. 12.

Minnesota Statutes 2024, section 297I.20, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Reinsurance credit. new text end

new text begin Beginning with taxable years after December 31, 2028,
a taxpayer may claim a credit against the premiums tax imposed under this chapter equal
to the amount of the assessment paid by the taxpayer under section 62E.23 in the immediately
preceding calendar year. If the amount of the credit exceeds the liability for tax under this
chapter, the commissioner must refund the excess to the insurance company. An amount
sufficient to pay the refunds under this section is appropriated to the commissioner from
the general fund. The credit under this subdivision does not affect the calculation of fire
state aid under section 477B.03 and police state aid under section 477C.03. The commissioner
of commerce must annually provide to the commissioner a list of assessments paid by
taxpayers under section 62E.23 by March 1 of the calendar year following the assessment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2028.
new text end

Sec. 13.

Minnesota Statutes 2024, section 297I.40, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Special provision; reinsurance credit. new text end

new text begin The credit allowed under section
297I.20, subdivision 7, is not allowed for purposes of determining the amount of the required
March and June installments in calendar year 2029. For the September and December
required installments in calendar year 2029 and for all installments thereafter, the installments
may be reduced, but not to an amount less than zero, by the entire amount of the credit
allowed. A taxpayer may claim a refund of the amount of credit allowed under section
297I.20, subdivision 7, remaining after the December required installment. The credit must
be claimed in the form and manner prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2028.
new text end

Sec. 14. new text begin PREMIUM SECURITY PLAN ACCOUNT; TRANSFER.
new text end

new text begin (a) The commissioner of management and budget must transfer $145,000,000 in fiscal
year 2026 from the health care access fund under Minnesota Statutes, section 16A.724,
subdivision 1, to the premium security plan account under Minnesota Statutes, section
62E.25, subdivision 1. This is a onetime transfer.
new text end

new text begin (b) Money transferred under paragraph (a) that remains unspent by August 31, 2027,
cancels to the health care access fund under Minnesota Statutes, section 16A.724, subdivision
1.
new text end

Sec. 15. new text begin TRANSFER FOR REINSURANCE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of credit amount. new text end

new text begin By June 1, 2030, the commissioner of revenue
must notify the commissioner of management and budget of the amount of the credit under
section 297I.20, subdivision 7, attributable to the tax imposed under section 297I.05,
subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Transfer. new text end

new text begin By June 30, 2030, the commissioner of management and budget
must transfer the amount established under subdivision 1 from the general fund to the health
care access fund. This is a onetime transfer.
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

ARTICLE 7

COMMERCE AND CONSUMER PROTECTION POLICY

Section 1.

Minnesota Statutes 2024, section 41A.09, subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other
renewable resources, including residue and waste generated from the production, processing,
and marketing of agricultural products, forest products, and other renewable resources, that:

(1) meets all of the specifications in ASTM specification deleted text begin D4806-04a deleted text end new text begin D4806-21a new text end ; and

(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is produced.

(c) "Commissioner" means the commissioner of agriculture.

(d) "Rural economic infrastructure" means the development of activities that will enhance
the value of agricultural crop or livestock commodities or by-products or waste from farming
operations through new and improved value-added conversion processes and technologies,
the development of more timely and efficient infrastructure delivery systems, and the
enhancement of marketing opportunities. "Rural economic infrastructure" also means land,
buildings, structures, fixtures, and improvements located or to be located in Minnesota and
used or operated primarily for the processing or the support of production of marketable
products from agricultural commodities or wind energy produced in Minnesota.

Sec. 2.

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" means an association of apartment owners, as defined in section 515.02,
subdivision 5, an association, as defined in section 515A.1-103, clause (3), and association
as defined 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) "Governing documents" means a common interest community's declaration, articles
of incorporation, bylaws, and any amendments to a common interest community's declaration,
articles of incorporation, or bylaws.
new text end

new text begin (e) "Unit owner" means an apartment owner, as defined in section 515.02, subdivision
3, a unit owner under section 515A.1-103, clause (20), and a unit owner, as defined 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) A common interest community ombudsperson position is
established within the Department of Commerce to:
new text end

new text begin (1) assist unit owners, unit owners' tenants, and associations in understanding the rights
each possesses under chapter 515B and the applicable governing documents; and
new text end

new text begin (2) facilitate the resolution of disputes between unit owners and associations.
new text end

new text begin (b) The ombudsperson is appointed by the commissioner and serves in the unclassified
service.
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 execute the duties under subdivision 2,
paragraph (a), by taking the following actions:
new text end

new text begin (1) creating plain language explanations of common provisions in governing documents;
and
new text end

new text begin (2) identifying 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 an association, the ombudsperson may provide
informal mediation services in disputes concerning chapter 515B and governing documents,
except where:
new text end

new text begin (1) a complaint based on the same dispute is pending in a judicial or administrative
proceeding;
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; or
new text end

new text begin (3) the association notifies the ombudsperson that an order under section 609.748 is in
effect against the unit owner.
new text end

new text begin (c) The ombudsperson must compile and analyze complaints received to identify issues
and trends.
new text end

new text begin (d) 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) a plain language explanation of common provisions of governing documents;
new text end

new text begin (3) information regarding the services provided by the common interest community
ombudsperson, including assistance with dispute resolution;
new text end

new text begin (4) information and referrals regarding alternative dispute resolution methods and
programs, and resources regarding the rights and responsibilities of unit owners and
associations; and
new text end

new text begin (5) any other information that the ombudsperson determines is useful to unit owners,
their tenants, associations, and common interest community property management companies.
new text end

new text begin (e) When requested or as the ombudsperson deems necessary, the ombudsperson must
provide reports and recommendations to the legislative committees with jurisdiction over
common interest communities.
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
providing legal advice 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 paragraph 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 may participate in
the dispute resolution process under this section and make good faith efforts to resolve
disputes.
new text end

new text begin Subd. 7. new text end

new text begin Data. new text end

new text begin Data identifying a unit owner, an association, a unit owner's tenant, or a
common interest community that are 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

Sec. 3.

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 natural persons or entities subject to the commissioner's
jurisdiction to provide data or other information within a reasonable time period
commensurate with the volume and nature of the data required to be collected in the data
call for a specific, 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. 4.

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: (1) must be treated as nonpublic data, as defined under section 13.02,
subdivision 9; and (2) is not subject to subpoena. If the commissioner performs a data call,
the commissioner may make the results available for public inspection in an aggregated
format and in a manner that does not disclose the identity of a specific natural person or
entity, including the name of any natural person or entity who responded to the data call.
Prior to making the aggregated results of a data call available for public inspection, the
commissioner must provide all natural persons and entities that responded to the data call
15 days' notice of the information to be publicly released. Nothing in this subdivision requires
the commissioner to publicly release aggregated results from a data call. The results of a
data call that requests data for the National Association of Insurance Commissioners' Market
Conduct Annual Statement is subject to confidential treatment under section 60A.031,
subdivision 4, paragraph (f).
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 with other state, federal, and international regulatory
agencies; with the National Association of Insurance Commissioners and its affiliates and
subsidiaries; and with state, federal, and international law enforcement authorities if the
recipient agrees in writing to maintain the data as nonpublic data and has the legal authority
to maintain the data as nonpublic data.
new text end

Sec. 5.

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. 6.

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. 7.

Minnesota Statutes 2024, section 80A.58, is amended to read:

80A.58 SECTION 403; INVESTMENT ADVISER REGISTRATION
REQUIREMENT AND EXEMPTIONS.

(a) Registration requirement. It is unlawful for a person to transact business in this
state as an investment adviser or investment adviser representative unless the person is
registered under this chapter or is exempt from registration under subsection (b).

(b) Exemptions from registration. The following persons are exempt from the
registration requirement of subsection (a):

(1) any person whose only clients in this state are:

(A) federal covered investment advisers, investment advisers registered under this
chapter, or broker-dealers registered under this chapter;

(B) bona fide preexisting clients whose principal places of residence are not in this state
if the investment adviser is registered under the securities act of the state in which the clients
maintain principal places of residence; or

(C) any other client exempted by rule adopted or order issued under this chapter;

(2) a person without a place of business in this state if the person has had, during the
preceding 12 months, not more than five clients that are resident in this state in addition to
those specified under paragraph (1);

(3) A private fund deleted text begin advisor deleted text end new text begin adviser new text end , subject to the additional requirements of subsection
(c), if the private fund adviser satisfies each of the following conditions:

(i) neither the private fund adviser nor any of its advisory affiliates are subject to a
disqualification as described in Rule 262 of SEC Regulation A, Code of Federal Regulations,
title 17, section 230.262;

(ii) the private fund adviser files with the state each report and amendment 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; deleted text begin or deleted text end new text begin
and
new text end

new text begin (iii) the private fund adviser pays the fees under section 80A.65, subdivision 2b; or
new text end

(4) any other person exempted by rule adopted or order issued under this chapter.

(c) Additional requirements for private fund advisers to certain 3(c)(1) funds. In
order to qualify for the exemption described in subsection (b)(3), a private fund adviser
who advises at least one 3(c)(1) fund that is not a venture capital fund shall, in addition to
satisfying each of the conditions specified in subsection (b)(3), comply with the following
requirements:

(1) The private fund adviser shall advise only those 3(c)(1) funds, other than venture
capital funds, whose outstanding securities, other than short-term paper, are beneficially
owned entirely by persons who, after deducting the value of the primary residence from the
person's net worth, would each meet the definition of a qualified client in SEC Rule 205-3,
Code of Federal Regulations, title 17, section 275.205-3, at the time the securities are
purchased from the issuer;

(2) At the time of purchase, the private fund adviser shall disclose the following in
writing to each beneficial owner of a 3(c)(1) fund that is not a venture capital fund:

(i) all services, if any, to be provided to individual beneficial owners;

(ii) all duties, if any, the investment adviser owes to the beneficial owners; and

(iii) any other material information affecting the rights or responsibilities of the beneficial
owners; and

(3) The private fund adviser shall obtain on an annual basis audited financial statements
of each 3(c)(1) fund that is not a venture capital fund and shall deliver a copy of such audited
financial statements to each beneficial owner of the fund.

(d) Federal covered investment advisers. If a private fund adviser is registered with
the Securities and Exchange Commission, the adviser shall not be eligible for the private
fund adviser exemption under paragraph (b), clause (3), and shall comply with the state
notice filing requirements applicable to federal covered investment advisers in section
80A.58.

(e) Investment adviser representatives. A person is exempt from the registration
requirements of section 80A.58, paragraph (a), if he or she is employed by or associated
with an investment adviser that is exempt from registration in this state pursuant to the
private fund adviser exemption under paragraph (b), clause (3), and does not otherwise
engage in activities that would require registration as an investment adviser representative.

(f) Electronic filings. The report filings described in subsection (b)(3)(ii) shall be made
electronically through the IARD. A report shall be deemed filed when the report and the
fee required by sections 80A.60 and 80A.65 are filed and accepted by the IARD on the
state's behalf.

(g) Transition. An investment adviser who becomes ineligible for the exemption provided
by this section must comply with all applicable laws and rules requiring registration or
notice filing within 90 days from the date of the investment adviser's eligibility for this
exemption ceases.

(h) Grandfathering for investment advisers to 3(c)(1) funds with nonqualified
clients. An investment adviser to a 3(c)(1) fund (other than a venture capital fund) that has
one or more beneficial owners who are not qualified clients as described in paragraph (c),
clause (1), is eligible for the exemption contained in paragraph (b), clause (3), if the following
conditions are satisfied:

(1) the subject fund existed prior to August 1, 2013;

(2) as of August 1, 2013, the subject fund ceases to accept beneficial owners who are
not qualified clients, as described in paragraph (c), clause (1);

(3) the investment adviser discloses in writing the information described in paragraph
(c), clause (2), to all beneficial owners of the fund; and

(4) as of August 1, 2013, the investment adviser delivers audited financial statements
as required by paragraph (c), clause (3).

(i) Limits on employment or association. It is unlawful for an investment adviser,
directly or indirectly, to employ or associate with an individual to engage in an activity
related to investment advice in this state if the registration of the individual is suspended
or revoked or the individual is barred from employment or association with an investment
adviser, federal covered investment adviser, or broker-dealer by an order under this chapter,
the Securities and Exchange Commission, or a self-regulatory organization, unless the
investment adviser did not know, and in the exercise of reasonable care could not have
known, of the suspension, revocation, or bar. Upon request from the investment adviser and
for good cause, the administrator, by order, may waive, in whole or in part, the application
of the prohibitions of this subsection to the investment adviser.

Sec. 8.

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 $65 new text end . new text begin A registered investment adviser representative who has terminated
employment with one investment adviser must, before beginning employment with another
investment adviser, pay a $50 transfer fee.
new text end

Sec. 9.

Minnesota Statutes 2024, section 80A.65, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Private fund adviser filings. new text end

new text begin A private fund adviser must pay a $100 filing
fee when filing an initial or renewal notice required under section 80A.58.
new text end

Sec. 10.

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. 11.

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. 12.

Minnesota Statutes 2024, section 82B.19, subdivision 5, is amended to read:

Subd. 5.

Out-of-state continuing education credit.

(a) For purposes of this subdivision,
the following terms have the meanings given:

(1) "asynchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board; and

(2) "synchronous educational offering" has the meaning given in the most recent version
of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
Qualifications Board, and includes an educational process based on live or real-time
instruction where there is no geographic separation of instructor and student.

(b) Notwithstanding section 45.30, subdivisions 1 and 6, a real estate appraiser new text begin or course
provider new text end may submit, in a form prescribed by the commissioner, an application for continuing
education credit for a synchronous educational offering that has not been submitted for prior
approval in Minnesota. The commissioner must grant a real estate appraiser continuing
education credit if:

(1) the application is submitted on or before August 1 of the year in which the real estate
appraiser license is due for renewal;

(2) the synchronous educational offering has been approved for continuing education
credit by the regulator of real estate appraisers in at least one other state or United States
territory; and

(3) an application is submitted by the real estate appraiser new text begin or course provider new text end to the
commissioner within deleted text begin 30 deleted text end new text begin 60 new text end days of successful completion of the synchronous educational
offering.

(c) The application must include a certificate of successful completion from the
synchronous educational offering provider. The commissioner must grant a real estate
appraiser the same number of continuing education credits for the successful completion
of the synchronous educational offering as was approved for the offering by the out-of-state
real estate appraiser regulatory authority. The commissioner must grant a real estate appraiser
continuing education credit within 60 days of the submission of the completed application
for out-of-state continuing education credit.

(d) The commissioner may charge a fee to a real estate appraiser, in an amount to be
determined by the commissioner, to submit an application under this subdivision.

(e) This subdivision does not apply to asynchronous educational offerings.

Sec. 13.

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; and
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. 14.

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. 15.

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. 16.

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. 17.

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: (1) 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; or
(2) upon a request by a telephone company or telecommunications carrier, a Federal
Communications Commission-approved adequate replacement provider if the requesting
telephone company or telecommunications carrier meets the requirements of 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) include 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;
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; and
new text end

new text begin (7) describe plans to transition or maintain critical government lines for which VOIP
service is not a reasonable alternative.
new text end

new text begin Subd. 3. new text end

new text begin Commission process. new text end

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

new text begin (1) has met the telephone company's or telecommunications carrier's 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 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 (a) 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 (1) the telephone
company or telecommunications carrier completes the required actions in subdivision 2,
and (2) any disputes brought before the commission by the customer are resolved.
new text end

new text begin (b) Nothing in this section relieves a telephone company or telecommunications carrier
from their obligations under current law, rule, and commission order for customers for
whom the commission has not granted approval of a transition plan pursuant to subdivision
3.
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 service is discontinued. A dispute 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 bears 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 the
incumbent local exchange carrier's existing interconnection obligations or terminates existing
interconnection agreements in a manner other than according to the terms of the existing
interconnection agreements 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 is
not 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. 18.

Minnesota Statutes 2024, section 239.761, subdivision 3, is amended to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with biofuel must not be contaminated
with water or other impurities and must comply with ASTM specification deleted text begin D4814-11b deleted text end new text begin
D4814-24a new text end . Gasoline that is not blended with biofuel must also comply with the volatility
requirements in Code of Federal Regulations, title 40, part 1090.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision
4;

(2) shall not blend the gasoline with any oxygenate other than biofuel;

(3) shall not blend the gasoline with other petroleum products that are not gasoline or
biofuel;

(4) shall not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 19.

Minnesota Statutes 2024, section 239.761, subdivision 4, is amended to read:

Subd. 4.

Gasoline blended with ethanol; general.

(a) Gasoline may be blended with
agriculturally derived, denatured ethanol that complies with the requirements of subdivision
5.

(b) A gasoline-ethanol blend must:

(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part
1090;

(2) comply with ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end , or the gasoline base stock
from which a gasoline-ethanol blend was produced must comply with ASTM specification
deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end ; and

(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,
or otherwise removed from a refinery or terminal.

Sec. 20.

Minnesota Statutes 2024, section 239.761, subdivision 5, is amended to read:

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to be blended with gasoline must
be agriculturally derived and must comply with ASTM specification deleted text begin D4806-11a deleted text end new text begin D4806-21a new text end .
This includes the requirement that ethanol may be denatured only as specified in Code of
Federal Regulations, title 27, parts 20 and 21.

Sec. 21.

Minnesota Statutes 2024, section 239.761, subdivision 6, is amended to read:

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a) A person responsible for
the product shall comply with the following requirements:

(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total,
of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any
time in this state; and

(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
paragraph (b) must not be sold or offered for sale in this state.

(b) The oxygenates prohibited under paragraph (a) are:

(1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;

(2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end . Nonethanol oxygenates must not be blended into
gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery
or terminal.

Sec. 22.

Minnesota Statutes 2024, section 239.791, subdivision 11, is amended to read:

Subd. 11.

Exemption for motor sports racing.

new text begin (a) new text end A person responsible for the product
may offer for sale, sell, or dispense at a public or private racecourse new text begin or a retail gasoline
station new text end , gasoline that is not oxygenated in accordance with subdivision 1 if the gasoline is
intended to be used exclusively as a fuel for off-highway motor sports racing events.

new text begin (b) No more than one storage tank on the premises of a retail gasoline station may be
used to store nonoxygenated motor sports racing gasoline that is offered for sale, sold, or
dispensed at the station. The pump stand at the station must be posted with a permanent,
conspicuously placed notice in full view of consumers stating: "FOR USE IN
OFF-HIGHWAY MOTOR SPORTS ENGINES ONLY."
new text end

Sec. 23.

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 a retail
EVSE owner a $100 fee to inspect and test each retail EVSE charging port.
new text end

new text begin Subd. 3. new text end

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

new text begin A retail 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 retail 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 retail 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 retail 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) A retail 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) A retail 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

new text begin Subd. 7. new text end

new text begin Administrative rulemaking. new text end

new text begin For purposes of this section, the commissioner
may use the expedited rulemaking process under section 14.389 to adopt administrative
rules that incorporate the 2025 version of NIST Handbook 44 into Minnesota Rules, chapter
7601.
new text end

Sec. 24.

Minnesota Statutes 2024, section 296A.01, subdivision 20, is amended to read:

Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means ethanol that is to be blended
with gasoline, has been agriculturally derived, and complies with ASTM specification
deleted text begin D4806-11a deleted text end new text begin D4806-21a new text end . This includes the requirement that ethanol may be denatured only
as specified in Code of Federal Regulations, title 27, parts 20 and 21.

Sec. 25.

Minnesota Statutes 2024, section 296A.01, subdivision 23, is amended to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline regardless of
their classification or uses, except casinghead gasoline, absorption gasoline, condensation
gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise
removed from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and
commercially used as, a fuel in spark-ignition, internal combustion engines, and that when
tested by the Weights and Measures Division meets the specifications in ASTM specification
deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end .

(b) Gasoline that is not blended with ethanol must not be contaminated with water or
other impurities and must comply with both ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end
and the volatility requirements in Code of Federal Regulations, title 40, part 1090.

(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,
a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision
24;

(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally
derived ethanol;

(3) must not blend the gasoline with other petroleum products that are not gasoline or
denatured, agriculturally derived ethanol;

(4) must not blend the gasoline with products commonly and commercially known as
casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 26.

Minnesota Statutes 2024, section 296A.01, subdivision 24, is amended to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with
nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or
ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that
complies with ASTM specification deleted text begin D4814-11b deleted text end new text begin D4814-24a new text end . Oxygenates, other than denatured
ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.

Sec. 27.

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;

(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, markers, and encaustics new text end ;

(12) fidget spinners;

(13) costumes, costume accessories, and children's and seasonal party supplies;

(14) keys, key chains, 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. 28.

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 ;
new text end

new text begin (2) covered products that contain lead only in solder used in internal components if:
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 (3) keys that contain lead and are imported, manufactured, sold, held for sale, distributed,
or offered for use in Minnesota before July 1, 2028;
new text end

new text begin (4) keys that contain lead equal to or less than 1.5 percent by total weight and are
imported, manufactured, sold, held for sale, distributed, or offered for use in Minnesota
after July 1, 2028; or
new text end

new text begin (5) pots and pans, if the pot or pan:
new text end

new text begin (i) is made of cast iron or steel;
new text end

new text begin (ii) has cadmium contained only in a vitreous enamel that does not come into contact
with food; and
new text end

new text begin (iii) does not contain lead in concentration greater than the limit established in subdivision
2, paragraph (a).
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. 29.

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 fixed firefighting systems in a
hangar at an airport. The commissioner of the Pollution Control Agency, in consultation
with the state fire marshal, may issue a hangar operator one-year extensions beyond January
1, 2028, if the commissioner determines (1) the need for additional time is beyond the
operator's control, and (2) public safety and the environment is sufficiently protected during
each extension period.
new text end

Sec. 30.

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 a place of entertainment's 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 exhibit, gallery, or
presentation space.
new text end

Sec. 31.

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. 32.

Minnesota Statutes 2024, section 550.136, subdivision 3, is amended to read:

Subd. 3.

Limitation on levy on earnings.

(a) Unless the judgment is for child support,
the maximum part of the aggregate disposable earnings of an individual for any pay period
subjected to an execution levy may not exceed the lesser of:

(1) 25 percent of the judgment debtor's disposable earnings; or

(2) the amount by which the judgment debtor's disposable earnings exceed the greater
of: (i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
clause deleted text begin (3) deleted text end new text begin (4) new text end ; or (ii) 40 times the federal minimum hourly wages prescribed by section
6(a)(1) of the Fair Labor Standards Act of 1938, United States Code, title 29, section
206(a)(1), in effect at the time the earnings are payable, times the number of work weeks
in the pay period. When a pay period consists of other than a whole number of work weeks,
each day of that pay period in excess of the number of completed work weeks shall be
counted as a fraction of a work week equal to the number of excess workdays divided by
the number of days in the normal work week.

(b) If the judgment is for child support, the levy may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received).

Execution levies under this section on judgments for child support are effective until
the judgments are satisfied if the judgment creditor is a county and the employer is notified
by the county when the judgment is satisfied.

(c) No court may make, execute, or enforce an order or any process in violation of this
section.

Sec. 33.

Minnesota Statutes 2024, section 551.06, subdivision 3, is amended to read:

Subd. 3.

Limitation on levy on earnings.

(a) Unless the judgment is for child support,
the maximum part of the aggregate disposable earnings of an individual for any pay period
subjected to an execution levy may not exceed the lesser of:

(1) 25 percent of the judgment debtor's disposable earnings; or

(2) the amount by which the judgment debtor's disposable earnings exceed the greater
of: (i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
clause deleted text begin (3) deleted text end new text begin (4) new text end ; or (ii) 40 times the federal minimum hourly wages prescribed by section
6(a)(1) of the Fair Labor Standards Act of 1938, United States Code, title 29, section
206(a)(1), in effect at the time the earnings are payable, times the number of work weeks
in the pay period. When a pay period consists of other than a whole number of work weeks,
each day of that pay period in excess of the number of completed work weeks shall be
counted as a fraction of a work week equal to the number of excess workdays divided by
the number of days in the normal work week.

(b) If the judgment is for child support, the levy may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received).

Execution levies under this section on judgments for child support are effective until
the judgments are satisfied if the judgment creditor is a county and the employer is notified
by the county when the judgment is satisfied.

(c) No court may make, execute, or enforce an order or any process in violation of this
section.

Sec. 34.

Minnesota Statutes 2024, section 571.922, is amended to read:

571.922 LIMITATION ON WAGE GARNISHMENT.

(a) Unless the judgment is for child support, the maximum part of the aggregate
disposable earnings of an individual for any pay period subjected to garnishment may not
exceed the lesser of:

(1) 25 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
80 times the greater of the hourly wage described in paragraph (b);

(2) 15 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
60 times, but is less than or equal to 80 times, the greater of the hourly wages described in
paragraph (b); or

(3) ten percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
40 times, but is less than or equal to 60 times, the greater of the hourly wages described in
paragraph (b).

(b) The amount by which the debtor's disposable earnings exceed the greater of:

(i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
clause deleted text begin (3) deleted text end new text begin (4) new text end ; or

(ii) 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the Fair
Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The calculation
of the amount that is subject to garnishment must be based on the hourly wage in effect at
the time the earnings are payable, times the number of work weeks in the pay period. When
a pay period consists of other than a whole number of work weeks, each day of that pay
period in excess of the number of completed work weeks shall be counted as a fraction of
a work week equal to the number of excess workdays divided by the number of days in the
normal work week.

(c) If the judgment is for child support, the garnishment may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received).

Wage garnishments on judgments for child support are effective until the judgments are
satisfied if the judgment creditor is a county and the employer is notified by the county
when the judgment is satisfied.

(d) No court may make, execute, or enforce an order or any process in violation of this
section.

Sec. 35. new text begin SECURITIES BROKER-DEALER CONDUCT; EXPEDITED
RULEMAKING.
new text end

new text begin The commissioner of commerce must adopt rules amending Minnesota Rules, part
2876.5021, to reflect that NASD is now referred to as FINRA and to comply with FINRA's
new securities broker-dealer conduct rules. The commissioner of commerce may use the
expedited rulemaking process under Minnesota Statutes, section 14.389, to amend Minnesota
Rules, part 2876.5021, under this section.
new text end