4th Engrossment - 93rd Legislature (2023 - 2024) Posted on 10/25/2023 09:29am
A bill for an act
relating to commerce; establishing a biennial budget for Department of Commerce
and related activities; adding and modifying various provisions governing health,
property, life, homeowner's, and automobile insurance; regulating financial
institutions; modifying provisions governing financial institutions; providing for
certain consumer protections and privacy; modifying provisions governing
commerce; making technical changes; establishing civil and criminal penalties;
authorizing administrative rulemaking; requiring reports; appropriating and
transferring money; amending Minnesota Statutes 2022, sections 46.131,
subdivision 11; 47.0153, subdivision 1; 47.59, subdivision 2; 47.60, subdivisions
1, 2, by adding a subdivision; 47.601, subdivisions 1, 2, 6, by adding a subdivision;
53.04, subdivision 3a; 53C.01, subdivision 12c, by adding a subdivision; 53C.08,
subdivision 1a; 56.131, subdivision 1; 60A.08, subdivision 15; 60A.14, subdivision
1; 61A.031; 61A.60, subdivision 3; 62A.152, subdivision 3; 62A.3099, by adding
a subdivision; 62A.31, subdivisions 1, 1f, 1h, 1p, 1u, 4, by adding a subdivision;
62A.44, subdivision 2; 62D.02, by adding a subdivision; 62D.095, subdivisions
2, 3, 5; 62J.26, subdivisions 1, 2; 62K.10, subdivision 4; 62Q.096; 62Q.19,
subdivision 1; 62Q.46, subdivisions 1, 3; 62Q.47; 62Q.735, subdivisions 1, 5;
62Q.76, by adding a subdivision; 62Q.78, by adding subdivisions; 62Q.81,
subdivision 4, by adding a subdivision; 65B.49, by adding a subdivision; 80A.50;
80E.041, subdivision 4; 103G.291, subdivision 4; 151.071, subdivisions 1, 2;
237.066; 239.791, subdivision 8; 256B.0631, subdivision 1; 256B.69, subdivision
5a; 256L.03, subdivision 5; 325D.01, subdivision 5; 325D.44, subdivisions 1, 2;
325D.71; 325E.31; 325F.662, subdivisions 2, 3; 325F.6641, subdivision 2; 325F.69,
subdivision 1, by adding a subdivision; 325G.051, subdivision 1; 327C.015,
subdivision 17, by adding subdivisions; 327C.04, subdivisions 1, 2, by adding
subdivisions; 515B.3-102; 515B.3-115; 515B.3-1151; 515B.3-116; Laws 2022,
chapter 93, article 1, section 2, subdivision 5; Laws 2023, chapter 24, section 3;
proposing coding for new law in Minnesota Statutes, chapters 47; 48; 52; 53B;
58; 58B; 60A; 62J; 62Q; 62W; 65A; 325E; 325F; 332; repealing Minnesota Statutes
2022, sections 48.10; 53B.01; 53B.02; 53B.03; 53B.04; 53B.05; 53B.06; 53B.07;
53B.08; 53B.09; 53B.10; 53B.11; 53B.12; 53B.13; 53B.14; 53B.15; 53B.16;
53B.17; 53B.18; 53B.19; 53B.20; 53B.21; 53B.22; 53B.23; 53B.24; 53B.25;
53B.26; 53B.27, subdivisions 1, 2, 5, 6, 7; 62A.31, subdivisions 1b, 1i; 327C.04,
subdivision 4; Minnesota Rules, parts 2675.2610, subparts 1, 3, 4; 2675.2620,
subparts 1, 2, 3, 4, 5; 2675.2630, subpart 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin APPROPRIATIONS.
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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 "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025. If an appropriation in this act is enacted more than once in
the 2023 legislative session, the appropriation must be given effect only once.
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APPROPRIATIONS new text end |
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Available for the Year new text end |
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Ending June 30 new text end |
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2024 new text end |
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2025 new text end |
Sec. 2. new text begin DEPARTMENT OF COMMERCE
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new text begin Subdivision 1. new text end
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Total Appropriation
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$ new text end |
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33,757,000 new text end |
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$ new text end |
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34,660,000 new text end |
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Appropriations by Fund new text end |
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2024 new text end |
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2025 new text end |
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General new text end |
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30,876,000 new text end |
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31,752,000 new text end |
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Workers' Compensation Fund new text end |
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788,000 new text end |
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815,000 new text end |
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Special Revenue new text end |
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2,093,000 new text end |
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2,093,000 new text end |
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The amounts that may be spent for each
purpose are specified in the following
subdivisions.
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new text begin Subd. 2. new text end
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Financial Institutions
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2,372,000 new text end |
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2,492,000 new text end |
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(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.
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(b) $254,000 each year is to administer the
requirements of Minnesota Statutes, chapter
58B.
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new text begin Subd. 3. new text end
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Administrative Services
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10,078,000 new text end |
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10,104,000 new text end |
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(a) $353,000 each year is for system
modernization and cybersecurity upgrades for
the unclaimed property program.
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(b) $564,000 each year is for additional
operations of the unclaimed property program.
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(c) $249,000 each year is for the senior safe
fraud prevention program.
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(d) $568,000 in the first year and $537,000 in
the second year are to create and maintain the
Prescription Drug Affordability Board
established under Minnesota Statutes, section
62J.87. The base in fiscal year 2026 is
$500,000.
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(e) $150,000 each year is for a grant to Exodus
Lending to expand program and operational
capacity to assist individuals with financial
stability through small dollar consumer loans,
including but not limited to resolving
consumer short-term loans carrying interest
rates greater than 36 percent. Loans issued
under the program must be: (1) interest- and
fee-free; and (2) made to Minnesotans facing
significant barriers to mainstream financial
products. Program participants must be
recruited through a statewide network of
trusted community-based partners. Loan
payments by borrowers must be reported to
the credit bureaus. These are onetime
appropriations and are available until June 30,
2027.
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(f) $200,000 in the first year is for a grant to
Exodus Lending to assist in the development
of a character-based small dollar loan program.
This is a onetime appropriation and is
available until June 30, 2027.
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(g) For the purposes of paragraphs (e) and (f),
the following terms have the meanings given:
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(1) "barriers to financial inclusion" means a
person's financial history, credit history and
credit score requirements, scarcity of
depository institutions in lower income and
communities of color, and low or irregular
income flows;
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(2) "character-based lending" means the
practice of issuing loans based on a borrower's
involvement in and ties to community-based
organizations that provide client services,
including but not limited to financial coaching;
and
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(3) "mainstream financial products" means
financial products that are provided most
commonly by regulated financial institutions,
including but not limited to credit cards and
installment loans.
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(h) No later than July 15, 2024, and annually
thereafter until the appropriations under
paragraphs (e) and (f) have been exhausted or
canceled, Exodus Lending must submit a
report to the commissioner of commerce on
the activities required of Exodus Lending
under paragraphs (e) and (f). Until July 15,
2027, the report must detail, at a minimum,
each of the following for the prior calendar
year and, after July 15, 2027, the report must
detail, at a minimum, each of the following
that relate to the activities of Exodus Lending
under paragraph (f) for the prior calendar year:
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(1) the total number of loans granted;
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(2) the total number of participants granted
loans;
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(3) an analysis of the participants' race,
ethnicity, gender, and geographic locations;
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(4) the average loan amount;
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(5) the total loan amounts paid back by
participants;
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(6) a list of the trusted community-based
partners;
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(7) the final criteria developed for
character-based small dollar loan program
determinations under paragraph (f); and
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(8) summary data on the significant barriers
to mainstream financial products faced by
participants.
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(i) No later than August 15, 2024, and
annually thereafter until the appropriations
under paragraphs (e) and (f) have been
exhausted or canceled, the commissioner of
commerce must submit a report to the chairs
and ranking minority members of the
legislative committees with primary
jurisdiction over commerce and consumer
protection. The report must detail the
information collected by the commissioner of
commerce under paragraph (h).
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(j) $12,000 each year is for the intermediate
blends of gasoline and biofuels report under
Minnesota Statutes, section 239.791,
subdivision 8.
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(k) The total base for administrative services
under this subdivision is $10,042,000 in fiscal
year 2026 and beyond.
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new text begin Subd. 4. new text end
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Enforcement
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7,382,000 new text end |
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7,670,000 new text end |
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Appropriations by Fund new text end |
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General new text end |
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7,174,000 new text end |
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7,455,000 new text end |
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Workers' Compensation new text end |
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208,000 new text end |
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215,000 new text end |
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(a) $811,000 each year is for five additional
peace officers in the Commerce Fraud Bureau.
Money under this paragraph is transferred
from the general fund to the insurance fraud
prevention account under Minnesota Statutes,
section 45.0135, subdivision 6.
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(b) $345,000 each year is for additional staff
to focus on market conduct examinations.
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(c) $41,000 in the first year and $21,000 in
the second year are for body cameras worn by
Commerce Fraud Bureau agents.
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(d) $208,000 in the first year and $215,000 in
the second year are from the workers'
compensation fund.
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(e) $100,000 in the second year is for the
creation and maintenance of the Mental Health
Parity and Substance Abuse Accountability
Office under Minnesota Statutes, section
62Q.465. The base for fiscal year 2026 is
$225,000.
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(f) $197,000 each year is to create and
maintain a student loan advocate position
under Minnesota Statutes, section 58B.011.
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(g) $283,000 each year is for law enforcement
salary increases, as authorized under Laws
2021, chapter 4, article 9, section 1.
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new text begin Subd. 5. new text end
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Telecommunications
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3,221,000 new text end |
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3,261,000 new text end |
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Appropriations by Fund new text end |
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General new text end |
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1,128,000 new text end |
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1,168,000 new text end |
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Special Revenue new text end |
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2,093,000 new text end |
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2,093,000 new text end |
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$2,093,000 each year is from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers:
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(1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This transfer
is subject to Minnesota Statutes, section
16A.281;
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(2) $290,000 each year is to the chief
information officer to coordinate technology
accessibility and usability;
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(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
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(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.
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new text begin Subd. 6. new text end
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Insurance
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9,173,000 new text end |
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9,577,000 new text end |
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Appropriations by Fund new text end |
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General new text end |
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8,593,000 new text end |
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8,977,000 new text end |
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Workers' Compensation new text end |
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580,000 new text end |
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600,000 new text end |
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(a) $136,000 each year is to advance
standardized health plan options.
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(b) $318,000 each year is to conduct a
feasibility study on a proposal to offer free
primary care to Minnesotans. These are
onetime appropriations.
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(c) $105,000 each year is to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26.
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(d) $180,000 each year is for additional staff
to focus on property- and casualty-related
insurance products.
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(e) $580,000 in the first year and $600,000 in
the second year are from the workers'
compensation fund.
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(f) $42,000 each year is for ensuring health
plan company compliance with Minnesota
Statutes, section 62Q.47, paragraph (h).
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(g) $25,000 each year is to evaluate existing
statutory health benefit mandates.
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(h) $20,000 each year is to pay membership
dues for Minnesota to the National Conference
of Insurance Legislators. The appropriations
in this paragraph are onetime.
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new text begin Subd. 7. new text end
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Weights and Measures Division
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1,531,000 new text end |
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1,556,000 new text end |
Sec. 3. new text begin DEPARTMENT OF EDUCATION
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new text begin Subdivision 1. new text end
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Total Appropriation
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$ new text end |
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100,000 new text end |
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$ new text end |
new text begin
-0- new text end |
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Appropriations by Fund new text end |
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2024 new text end |
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2025 new text end |
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General new text end |
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100,000 new text end |
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$100,000 in the first year is to issue grants of
$50,000 each year to the Minnesota Council
on Economic Education. This balance does
not cancel but is available in the second year.
This appropriation is onetime.
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Sec. 4. new text begin ATTORNEY GENERAL
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new text begin Subdivision 1. new text end
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Total Appropriation
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new text begin
$ new text end |
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691,000 new text end |
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$ new text end |
new text begin
691,000 new text end |
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Appropriations by Fund new text end |
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2024 new text end |
new text begin
2025 new text end |
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General new text end |
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691,000 new text end |
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691,000 new text end |
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The amounts that may be spent for each
purpose are specified in the following
subdivisions.
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new text begin Subd. 2. new text end
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Excessive Price Increases to Generic
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549,000 new text end |
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549,000 new text end |
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$549,000 each year is for the duties under
Minnesota Statutes, sections 62J.841 to
64J.845.
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new text begin Subd. 3. new text end
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Report.
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142,000 new text end |
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142,000 new text end |
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(a) $142,000 each year is for a report on the
effect of new and emerging technologies on
the well-being of Minnesotans. The
appropriations in this paragraph are onetime.
The report must:
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(1) evaluate the impact of technology
companies and their products on the mental
health and well-being of Minnesotans, with a
focus on children;
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(2) discuss proposed and enacted consumer
protection laws related to the regulation of
technology companies in other jurisdictions;
and
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(3) include policy recommendations to the
Minnesota legislature.
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(b) The report is due beginning February 1,
2024, and by the same date the following year
and must be filed according to Minnesota
Statutes, section 3.195, with copies submitted
to the chairs and ranking minority members
of the legislative committees with jurisdiction
over data and commerce.
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Sec. 5. new text begin DEPARTMENT OF HEALTH
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new text begin Subdivision 1. new text end
new text begin
Total Appropriation
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new text begin
$ new text end |
new text begin
74,000 new text end |
new text begin
$ new text end |
new text begin
56,000 new text end |
new text begin
Appropriations by Fund new text end |
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new text begin
2024 new text end |
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2025 new text end |
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new text begin
General new text end |
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74,000 new text end |
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56,000 new text end |
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(a) $69,000 in the first year and $51,000 in
the second year are for the duties under
Minnesota Statutes, sections 62J.841 to
64J.845.
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(b) $5,000 each year is to evaluate existing
statutory health benefit mandates.
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$275,775,000 in fiscal year 2026 is transferred from the premium security plan account
under Minnesota Statutes, section 62E.25, subdivision 1, to the general fund. This is a
onetime transfer.
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$100,000 in fiscal year 2024 is transferred from the consumer education account in the
special revenue fund to the general fund.
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Laws 2022, chapter 93, article 1, section 2, subdivision 5, is amended to read:
Subd. 5.Enforcement and Examinations
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-0- |
522,000 |
$522,000 in fiscal year 2023 is for the auto
theft prevention library under Minnesota
Statutes, section 65B.84, subdivision 1,
paragraph (d). This is a onetime appropriationnew text begin
and is available until June 30, 2024new text end .
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This section is effective the day following final enactment.
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Minnesota Statutes 2022, section 60A.08, subdivision 15, is amended to read:
(a) All forms, rates, and related
information filed with the commissioner under section 61A.02 shall be nonpublic data until
the filing becomes effective.
(b) All forms, rates, and related information filed with the commissioner under section
62A.02 shall be nonpublic data until the filing becomes effective.
(c) All forms, rates, and related information filed with the commissioner under section
62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.
(d) All forms, rates, and related information filed with the commissioner under section
70A.06 shall be nonpublic data until the filing becomes effective.
(e) All forms, rates, and related information filed with the commissioner under section
79.56 shall be nonpublic data until the filing becomes effective.
new text begin
(f) All forms, rates, and related information filed with the commissioner under section
65A.298 are nonpublic data until the filing becomes effective.
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deleted text begin (f)deleted text end new text begin (g)new text end Notwithstanding paragraphs (b) and (c), for all rate increases subject to review
under section 2794 of the Public Health Services Act and any amendments to, or regulations,
or guidance issued under the act that are filed with the commissioner on or after September
1, 2011, the commissioner:
(1) may acknowledge receipt of the information;
(2) may acknowledge that the corresponding rate filing is pending review;
(3) must provide public access from the Department of Commerce's website to parts I
and II of the Preliminary Justifications of the rate increases subject to review; and
(4) must provide notice to the public on the Department of Commerce's website of the
review of the proposed rate, which must include a statement that the public has 30 calendar
days to submit written comments to the commissioner on the rate filing subject to review.
deleted text begin (g)deleted text end new text begin (h)new text end Notwithstanding paragraphs (b) and (c), for all proposed premium rates filed
with the commissioner for individual health plans, as defined in section 62A.011, subdivision
4, and small group health plans, as defined in section 62K.03, subdivision 12, the
commissioner must provide public access on the Department of Commerce's website to
compiled data of the proposed changes to rates, separated by health plan and geographic
rating area, within ten business days after the deadline by which health carriers, as defined
in section 62A.011, subdivision 2, must submit proposed rates to the commissioner for
approval.
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This section may be cited as the "Family Protection Act."
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new text begin
(a) For purposes of this section, the following terms have the
meanings given.
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(b) "Boat" means a motorized or nonmotorized vessel that floats and is used for personal,
noncommercial use on waters in Minnesota.
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(c) "Boat insurance policy" means an insurance policy that provides liability coverage
for bodily injury resulting from the ownership, maintenance, or use of a boat, although the
policy may also provide for property insurance coverage for the boat for noncommercial
use.
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(d) "Insured" means an insured under a policy specified in subdivision 3, clauses (1) to
(4), including the named insured and the following persons not identified by name as an
insured while residing in the same household with the named insured:
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(1) a spouse of a named insured;
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(2) a relative of a named insured; or
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(3) a minor in the custody of a named insured, spouse of a named insured, or of a relative
residing in the same household with a named insured.
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For purposes of this section, a person resides in or is a member of the same household with
the named insured if the person's home is usually in the same family unit, even if the person
is temporarily living elsewhere.
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(e) "Permitted exclusion" means an exclusion of or limitation on liability for damages
for bodily injury resulting from fraud, intentional conduct, criminal conduct that intentionally
causes an injury, and other exclusions permitted by law, including a permitted exclusion
contained in a boat insurance policy issued in this state pursuant to subdivision 6.
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(f) "Prohibited exclusion" means an exclusion of or limitation on liability for damages
for bodily injury because the injured person is:
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(1) an insured other than a named insured;
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(2) a resident or member of the insured's household; or
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(3) related to the insured by blood or marriage.
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A prohibited exclusion contained in a plan or policy
identified in clauses (1) to (4) is against public policy and is void. The following insurance
coverage issued in this state must not contain a prohibited exclusion, unless expressly
provided otherwise under this section:
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(1) a plan of reparation security, as defined under section 65B.43;
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(2) a boat insurance policy;
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(3) a personal excess liability policy; and
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(4) a personal umbrella policy.
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An insurance policy listed in this section may contain
a permitted exclusion for bodily injury to an insured.
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An excess or umbrella policy may contain
a requirement that coverage for family or household members under an excess or umbrella
policy governed by this section is available only to the extent coverage is first available
from an underlying policy that provides coverage for damages for bodily injury.
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(a) An insurer issuing bodily
injury liability coverage for a boat insurance policy under this section must notify a person
at the time of sale of the person's rights under this section to decline coverage for insureds
and be provided an updated quote reflecting the appropriate premium for the coverage
provided.
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(b) Named insureds must affirmatively make an election to decline coverage, in a form
approved by the commissioner, after being informed that an updated quote will be provided.
The election must be signed and dated, and is binding on all persons insured under the policy
and to any renewal of the policy.
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(c) An insurer offering an election of coverage under this subdivision must have the
disclosure approved by the commissioner. The notice must be in 14-point bold type, in a
conspicuous location of the notice document, and contain at least the following:
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ELECTION TO DECLINE COVERAGE: YOU HAVE THE RIGHT TO DECLINE
BODILY INJURY COVERAGE FOR INJURIES TO YOUR FAMILY AND HOUSEHOLD
MEMBERS FOR WHICH YOU WOULD OTHERWISE BE ENTITLED TO UNDER
MINNESOTA LAW. IF YOU ELECT TO DECLINE THIS COVERAGE, YOU WILL
RECEIVE AN UPDATED PREMIUM QUOTE BASED ON THE COVERAGE YOU
ARE ELECTING TO PURCHASE. READ YOUR POLICY CAREFULLY TO
DETERMINE WHICH FAMILY AND HOUSEHOLD MEMBERS WOULD NOT BE
COVERED FOR BODILY INJURY IF YOU ELECT TO DECLINE COVERAGE.
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An endorsement, rider, or contract amendment is
not required for this section to be effective.
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This section is effective January 1, 2024, for plans of reparation
security, as defined under Minnesota Statutes, section 65B.43, a personal excess liability
policy, or a personal umbrella policy offered, issued, or renewed on or after that date. This
section is effective on May 1, 2024, for a boat insurance policy covering a personal injury
sustained while using a boat.
new text end
Minnesota Statutes 2022, section 60A.14, subdivision 1, is amended to read:
In addition to the fees and charges
provided for examinations, the following fees must be paid to the commissioner for deposit
in the general fund:
(a) by township mutual fire insurance companies:
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges:
(1) for filing an application for an initial certification of authority to be admitted to
transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, deleted text begin $225deleted text end new text begin $300new text end ;
(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;
(5) for filing bylaws, $75 or amendments thereto, $75;
(6) for each company's certificate of authority, deleted text begin $575deleted text end new text begin $750new text end , annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page, and
$2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life insurance companies, deleted text begin one centdeleted text end new text begin two centsnew text end per $1,000
of insurance so valued, provided that the fee shall not exceed deleted text begin $13,000deleted text end new text begin $26,000new text end per year for
any company. The commissioner may, in lieu of a valuation of the policies of any foreign
life insurance company admitted, or applying for admission, to do business in this state,
accept a certificate of valuation from the company's own actuary or from the commissioner
of insurance of the state or territory in which the company is domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by the
commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $30;
(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees may
be paid on a quarterly basis in response to an invoice. Billing and payment may be made
electronically;
(8) for annual renewal of surplus lines insurer license, deleted text begin $300deleted text end new text begin $400new text end .
The commissioner shall adopt rules to define filings that are subject to a fee.
Minnesota Statutes 2022, section 61A.031, is amended to read:
new text begin (a) new text end The sanity or insanity of a person shall not be a factor in determining whether a
person committed suicide within the terms of an individual or group life insurance policy
regulating the payment of benefits in the event of the insured's suicide. This deleted text begin sectiondeleted text end new text begin paragraphnew text end
shall not be construed to alter present law but is intended to clarify present law.
new text begin
(b) A life insurance policy or certificate issued or delivered in this state may exclude or
restrict liability for any death benefit in the event the insured dies as a result of suicide
within one year from the date of the issue of the policy or certificate. Any exclusion or
restriction shall be clearly stated in the policy or certificate. Any life insurance policy or
certificate which contains any exclusion or restriction under this paragraph shall also provide
that in the event any death benefit is denied because the insured dies as a result of suicide
within one year from the date of issue of the policy or certificate, the insurer shall refund
all premiums paid for coverage providing the denied death benefit on the insured.
new text end
new text begin
This section is effective January 1, 2024, and applies to policies
issued on or after that date.
new text end
Minnesota Statutes 2022, section 61A.60, subdivision 3, is amended to read:
The following definitions must appear on the back of the notice
forms provided in subdivisions 1 and 2:
DEFINITIONS
PREMIUMS: Premiums are the payments you make in exchange for an insurance policy
or annuity contract. They are unlike deposits in a savings or investment program, because
if you drop the policy or contract, you might get back less than you paid in.
CASH SURRENDER VALUE: This is the amount of money you can get in cash if you
surrender your life insurance policy or annuity. If there is a policy loan, the cash surrender
value is the difference between the cash value printed in the policy and the loan value. Not
all policies have cash surrender values.
LAPSE: A life insurance policy may lapse when you do not pay the premiums within
the grace period. If you had a cash surrender value, the insurer might change your policy
to as much extended term insurance or paid-up insurance as the cash surrender value will
buy. Sometimes the policy lets the insurer borrow from the cash surrender value to pay the
premiums.
SURRENDER: You surrender a life insurance policy when you either let it lapse or tell
the company you want to drop it. Whenever a policy has a cash surrender value, you can
get it in cash if you return the policy to the company with a written request. Most insurers
will also let you exchange the cash value of the policy for paid-up or extended term insurance.
CONVERT TO PAID-UP INSURANCE: This means you use your cash surrender value
to change your insurance to a paid-up policy with the same insurer. The death benefit
generally will be lower than under the old policy, but you will not have to pay any more
premiums.
PLACE ON EXTENDED TERM: This means you use your cash surrender value to
change your insurance to term insurance with the same insurer. In this case, the net death
benefit will be the same as before. However, you will only be covered for a specified period
of time stated in the policy.
BORROW POLICY LOAN VALUES: If your life insurance policy has a cash surrender
value, you can almost always borrow all or part of it from the insurer. Interest will be charged
according to the terms of the policy, and if the loan with unpaid interest ever exceeds the
cash surrender value, your policy will be surrendered. If you die, the amount of the loan
and any unpaid interest due will be subtracted from the death benefits.
EVIDENCE OF INSURABILITY: This means proof that you are an acceptable risk.
You have to meet the insurer's standards regarding age, health, occupation, etc., to be eligible
for coverage.
INCONTESTABLE CLAUSE: This says that after two years, depending on the policy
or insurer, the life insurer will not resist a claim because you made a false or incomplete
statement when you applied for the policy. For the early years, though, if there are wrong
answers on the application and the insurer finds out about them, the insurer can deny a claim
as if the policy had never existed.
SUICIDE CLAUSE: This says that if you deleted text begin commitdeleted text end new text begin completenew text end suicide after being insured
for less than deleted text begin two yearsdeleted text end new text begin one yearnew text end , depending on the policy and insurer, your beneficiaries
will receive only a refund of the premiums that were paid.
new text begin
This section is effective January 1, 2024, and applies to policies
issued on or after that date.
new text end
Minnesota Statutes 2022, section 62A.152, subdivision 3, is amended to read:
All group policies and group subscriber
contracts that provide benefits for mental or nervous disorder treatments in a hospital must
provide direct reimbursement for those services new text begin at a hospital or psychiatric residential
treatment facility new text end if performed by a mental health professional qualified according to section
245I.04, subdivision 2, to the extent that the services and treatment are within the scope of
mental health professional licensure.
This subdivision is intended to provide payment of benefits for mental or nervous disorder
treatments performed by a licensed mental health professional in a hospital new text begin or psychiatric
residential treatment facility new text end and is not intended to change or add benefits for those services
provided in policies or contracts to which this subdivision applies.
new text begin
This section is effective January 1, 2025, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.3099, is amended by adding a subdivision
to read:
new text begin
"Open enrollment period" means the time period
described in Code of Federal Regulations, title 42, section 422.62, paragraph (a), clauses
(2) to (4), as amended.
new text end
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 1, is amended to read:
No individual or group policy, certificate, subscriber
contract issued by a health service plan corporation regulated under chapter 62C, or other
evidence of accident and health insurance the effect or purpose of which is to supplement
Medicare coverage, including to supplement coverage under Medicare Advantage plans
established under Medicare Part C, issued or delivered in this state or offered to a resident
of this state shall be sold or issued to an individual covered by Medicare unless the
requirements in subdivisions 1a to deleted text begin 1vdeleted text end new text begin 1wnew text end are met.
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 1f, is amended to read:
(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 deleted text begin additionaldeleted text end waiting
period 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
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 1h, is amended to read:
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 submittednew text begin : (1)new text end 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 Bnew text begin ; or (2) during the open enrollment periodnew 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. 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 Bnew text begin and during the open enrollment
periodnew text end . 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 Bnew text begin and during the open enrollment
periodnew 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 Bnew text begin and during the open enrollment periodnew text end .
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 1p, is amended to read:
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. deleted text begin If a Medicare supplement policy or certificate contains limitations with
respect to preexisting conditions, the limitations shall appear as a separate paragraph of the
policy or certificate and be labeled as "preexisting condition limitations."
deleted 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
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 1u, is amended to read:
(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; deleted text begin or
deleted text end
(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 .deleted text end new text begin ; or
new text end
new text begin
(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).
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.
new text begin
(7) For all individuals described in paragraph (b), the open enrollment period is a
guaranteed issue 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
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, is amended by adding a subdivision to
read:
new text begin
A medicare supplement policy or certificate must not be
sold or issued to an eligible individual outside of the time periods described in subdivision
1u.
new text end
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.31, subdivision 4, is amended to read:
(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 conditionsdeleted text begin , except as permitted under subdivision 1bdeleted text end .
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62A.44, subdivision 2, is amended to read:
(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):
.
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Additional benefits |
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No change in benefits, but lower premiums |
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.
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Fewer benefits and lower premiums |
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.
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Other (please specify) |
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.
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.
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.
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deleted 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.
deleted text end
deleted 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.
deleted text end
deleted 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.)
deleted 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)* |
||
.
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(Typed Name and Address of Issuer, Agent, or Broker) |
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(Date) |
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(Applicant's Signature) |
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(Date) |
*Signature not required for direct response sales."
deleted 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.
deleted text end
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62D.02, is amended by adding a subdivision to
read:
new text begin
"Preventive items and services" has the
meaning given in section 62Q.46, subdivision 1, paragraph (a).
new text end
Minnesota Statutes 2022, section 62D.095, subdivision 2, is amended to read:
A health maintenance contract may impose a co-payment and
coinsurance consistent with the provisions of the Affordable Care Act as defined under
section 62A.011, subdivision 1anew text begin , and for items and services that are not preventive items
and servicesnew text end .
Minnesota Statutes 2022, section 62D.095, subdivision 3, is amended to read:
A health maintenance contract deleted text begin maydeleted text end new text begin must notnew text end impose a deductible
deleted text begin consistent with the provisions of the Affordable Care Act as defined under section 62A.011,
subdivision 1adeleted text end new text begin for preventive items and servicesnew text end .
Minnesota Statutes 2022, section 62D.095, subdivision 5, is amended to read:
deleted text begin Nodeleted text end Co-payments or deductibles deleted text begin maydeleted text end new text begin must notnew text end be imposed on
preventive deleted text begin health caredeleted text end new text begin items andnew text end services deleted text begin consistent with the provisions of the Affordable
Care Act as defined under section 62A.011, subdivision 1adeleted text end .
Minnesota Statutes 2022, section 62J.26, subdivision 1, is amended to read:
new text begin (a) new text end For purposes of this section, the following terms have
the meanings given unless the context otherwise requires:
(1) "commissioner" means the commissioner of commerce;
(2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;
(3) "health plan" means a health plan as defined in section 62A.011, subdivision 3, but
includes coverage listed in clauses (7) and (10) of that definition;
(4) "mandated health benefit proposal" or "proposal" means a proposal that would
statutorily require a health plan company to do the following:
(i) provide coverage or increase the amount of coverage for the treatment of a particular
disease, condition, or other health care need;
(ii) provide coverage or increase the amount of coverage of a particular type of health
care treatment or service or of equipment, supplies, or drugs used in connection with a health
care treatment or service;
(iii) provide coverage for care delivered by a specific type of provider;
(iv) require a particular benefit design or impose conditions on cost-sharing for:
(A) the treatment of a particular disease, condition, or other health care need;
(B) a particular type of health care treatment or service; or
(C) the provision of medical equipment, supplies, or a prescription drug used in
connection with treating a particular disease, condition, or other health care need; or
(v) impose limits or conditions on a contract between a health plan company and a health
care provider.
new text begin (b) new text end "Mandated health benefit proposal" does not include health benefit proposalsnew text begin :
new text end
new text begin (1)new text end amending the scope of practice of a licensed health care professionaldeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) that make state law consistent with federal law.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 62J.26, subdivision 2, is amended to read:
(a) The commissioner, in consultation with
the commissioners of health and management and budget, must evaluate all mandated health
benefit proposals as provided under subdivision 3.
(b) The purpose of the evaluation is to provide the legislature with a complete and timely
analysis of all ramifications of any mandated health benefit proposal. The evaluation must
include, in addition to other relevant information, the following to the extent applicable:
(1) scientific and medical information on the mandated health benefit proposal, on the
potential for harm or benefit to the patient, and on the comparative benefit or harm from
alternative forms of treatment, and must include the results of at least one professionally
accepted and controlled trial comparing the medical consequences of the proposed therapy,
alternative therapy, and no therapy;
(2) public health, economic, and fiscal impacts of the mandated health benefit proposal
on persons receiving health services in Minnesota, on the relative cost-effectiveness of the
proposal, and on the health care system in general;
(3) the extent to which the treatment, service, equipment, or drug is generally utilized
by a significant portion of the population;
(4) the extent to which insurance coverage for the mandated health benefit proposal is
already generally available;
(5) the extent to which the mandated health benefit proposal, by health plan category,
would apply to the benefits offered to the health plan's enrollees;
(6) the extent to which the mandated health benefit proposal will increase or decrease
the cost of the treatment, service, equipment, or drug;
(7) the extent to which the mandated health benefit proposal may increase enrollee
premiums; and
(8) if the proposal applies to a qualified health plan as defined in section 62A.011,
subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
using commercial market reimbursement rates in accordance with Code of Federal
Regulations, title 45, section deleted text begin 155.70deleted text end new text begin 155.170new text end .
(c) The commissioner shall consider actuarial analysis done by health plan companies
and any other proponent or opponent of the mandated health benefit proposal in determining
the cost of the proposal.
(d) The commissioner must summarize the nature and quality of available information
on these issues, and, if possible, must provide preliminary information to the public. The
commissioner may conduct research on these issues or may determine that existing research
is sufficient to meet the informational needs of the legislature. The commissioner may seek
the assistance and advice of researchers, community leaders, or other persons or organizations
with relevant expertise.new text begin The commissioner must provide the public with at least 45 days'
notice when requesting information pursuant to this section. The commissioner must notify
the chief authors of a bill when a request for information is issued.
new text end
new text begin
(e) Information submitted to the commissioner pursuant to this section that meets the
definition of trade secret information, as defined in section 13.37, subdivision 1, paragraph
(b), is nonpublic data.
new text end
new text begin
For purposes of sections 62J.841 to 62J.845, the following
definitions apply.
new text end
new text begin
"Consumer Price Index" means the Consumer Price
Index, Annual Average, for All Urban Consumers, CPI-U: U.S. City Average, All Items,
reported by the United States Department of Labor, Bureau of Labor Statistics, or its
successor or, if the index is discontinued, an equivalent index reported by a federal authority
or, if no such index is reported, "Consumer Price Index" means a comparable index chosen
by the Bureau of Labor Statistics.
new text end
new text begin
"Generic or off-patent drug" means any prescription
drug for which any exclusive marketing rights granted under the Federal Food, Drug, and
Cosmetic Act, section 351 of the federal Public Health Service Act, and federal patent law
have expired, including any drug-device combination product for the delivery of a generic
drug.
new text end
new text begin
"Manufacturer" has the meaning given in section 151.01,
subdivision 14a, but does not include an entity that must be licensed solely because the
entity repackages or relabels drugs.
new text end
new text begin
"Prescription drug" means a drug for human use subject
to United States Code, title 21, section 353(b)(1).
new text end
new text begin
"Wholesale acquisition cost" has the meaning
provided in United States Code, title 42, section 1395w-3a.
new text end
new text begin
"Wholesale distributor" has the meaning provided in
section 151.441, subdivision 14.
new text end
new text begin
No manufacturer shall impose, or cause to be imposed, an
excessive price increase, whether directly or through a wholesale distributor, pharmacy, or
similar intermediary, on the sale of any generic or off-patent drug sold, dispensed, or
delivered to any consumer in the state.
new text end
new text begin
A price increase is excessive for purposes of this
section when:
new text end
new text begin
(1) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds:
new text end
new text begin
(i) 15 percent of the wholesale acquisition cost over the immediately preceding calendar
year; or
new text end
new text begin
(ii) 40 percent of the wholesale acquisition cost over the immediately preceding three
calendar years; and
new text end
new text begin
(2) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds
$30 for:
new text end
new text begin
(i) a 30-day supply of the drug; or
new text end
new text begin
(ii) a course of treatment lasting less than 30 days.
new text end
new text begin
It is not a violation of this section for a wholesale distributor or
pharmacy to increase the price of a generic or off-patent drug if the price increase is directly
attributable to additional costs for the drug imposed on the wholesale distributor or pharmacy
by the manufacturer of the drug.
new text end
new text begin
Any manufacturer that sells, distributes, delivers, or offers for sale any generic or
off-patent drug in the state must maintain a registered agent and office within the state.
new text end
new text begin
(a) The commissioner of health shall notify the manufacturer
of a generic or off-patent drug and the attorney general of any price increase that the
commissioner believes may violate section 62J.842.
new text end
new text begin
(b) The commissioner of management and budget and any other state agency that provides
or purchases a pharmacy benefit except the Department of Human Services, and any entity
under contract with a state agency to provide a pharmacy benefit other than an entity under
contract with the Department of Human Services, may notify the manufacturer of a generic
or off-patent drug and the attorney general of any price increase that the commissioner or
entity believes may violate section 62J.842.
new text end
new text begin
(a) Within 45 days of receiving a notice under subdivision
1, the manufacturer of the generic or off-patent drug shall submit a drug cost statement to
the attorney general. The statement must:
new text end
new text begin
(1) itemize the cost components related to production of the drug;
new text end
new text begin
(2) identify the circumstances and timing of any increase in materials or manufacturing
costs that caused any increase during the preceding calendar year, or preceding three calendar
years as applicable, in the price of the drug; and
new text end
new text begin
(3) provide any other information that the manufacturer believes to be relevant to a
determination of whether a violation of section 62J.842 has occurred.
new text end
new text begin
(b) The attorney general may investigate whether a violation of section 62J.842 has
occurred, in accordance with section 8.31, subdivision 2.
new text end
new text begin
(a) On petition of the attorney general, a court may issue an
order:
new text end
new text begin
(1) compelling the manufacturer of a generic or off-patent drug to:
new text end
new text begin
(i) provide the drug cost statement required under subdivision 2, paragraph (a); and
new text end
new text begin
(ii) answer interrogatories, produce records or documents, or be examined under oath,
as required by the attorney general under subdivision 2, paragraph (b);
new text end
new text begin
(2) restraining or enjoining a violation of sections 62J.841 to 62J.845, including issuing
an order requiring that drug prices be restored to levels that comply with section 62J.842;
new text end
new text begin
(3) requiring the manufacturer to provide an accounting to the attorney general of all
revenues resulting from a violation of section 62J.842;
new text end
new text begin
(4) requiring the manufacturer to repay to all Minnesota consumers, including any
third-party payers, any money acquired as a result of a price increase that violates section
62J.842;
new text end
new text begin
(5) notwithstanding section 16A.151, requiring that all revenues generated from a
violation of section 62J.842 be remitted to the state and deposited into a special fund, to be
used for initiatives to reduce the cost to consumers of acquiring prescription drugs, if a
manufacturer is unable to determine the individual transactions necessary to provide the
repayments described in clause (4);
new text end
new text begin
(6) imposing a civil penalty of up to $10,000 per day for each violation of section 62J.842;
new text end
new text begin
(7) providing for the attorney general's recovery of costs and disbursements incurred in
bringing an action against a manufacturer found in violation of section 62J.842, including
the costs of investigation and reasonable attorney's fees; and
new text end
new text begin
(8) providing any other appropriate relief, including any other equitable relief as
determined by the court.
new text end
new text begin
(b) For purposes of paragraph (a), clause (6), every individual transaction in violation
of section 62J.842 is considered a separate violation.
new text end
new text begin
Any action brought pursuant to section 8.31, subdivision
3a, by a person injured by a violation of section 62J.842 is for the benefit of the public.
new text end
new text begin
A manufacturer of a generic or off-patent drug is prohibited
from withdrawing that drug from sale or distribution within this state for the purpose of
avoiding the prohibition on excessive price increases under section 62J.842.
new text end
new text begin
Any manufacturer that intends to
withdraw a generic or off-patent drug from sale or distribution within the state shall provide
a written notice of withdrawal to the attorney general at least 90 days prior to the withdrawal.
new text end
new text begin
The attorney general shall assess a penalty of $500,000 on
any manufacturer of a generic or off-patent drug that the attorney general determines has
failed to comply with the requirements of this section.
new text end
new text begin
If any provision of sections 62J.841 to 62J.845 or the application thereof to any person
or circumstance is held invalid for any reason in a court of competent jurisdiction, the
invalidity does not affect other provisions or any other application of sections 62J.841 to
62J.845 that can be given effect without the invalid provision or application.
new text end
new text begin
Sections 62J.85 to 62J.95 may be cited as the "Prescription Drug Affordability Act."
new text end
new text begin
For the purposes of sections 62J.85 to 62J.95, the following
terms have the meanings given.
new text end
new text begin
"Advisory council" means the Prescription Drug Affordability
Advisory Council established under section 62J.88.
new text end
new text begin
"Biologic" means a drug that is produced or distributed in accordance
with a biologics license application approved under Code of Federal Regulations, title 42,
section 447.502.
new text end
new text begin
"Biosimilar" has the meaning provided in section 62J.84, subdivision
2, paragraph (b).
new text end
new text begin
"Board" means the Prescription Drug Affordability Board established
under section 62J.87.
new text end
new text begin
"Brand name drug" means a drug that is produced or
distributed pursuant to:
new text end
new text begin
(1) a new drug application approved under United States Code, title 21, section 355(c),
except for a generic drug as defined under Code of Federal Regulations, title 42, section
447.502; or
new text end
new text begin
(2) a biologics license application approved under United States Code, title 45, section
262(a)(c).
new text end
new text begin
"Generic drug" has the meaning provided in section 62J.84,
subdivision 2, paragraph (e).
new text end
new text begin
"Group purchaser" has the meaning given in section 62J.03,
subdivision 6, and includes pharmacy benefit managers, as defined in section 62W.02,
subdivision 15.
new text end
new text begin
"Manufacturer" means an entity that:
new text end
new text begin
(1) engages in the manufacture of a prescription drug product or enters into a lease with
another manufacturer to market and distribute a prescription drug product under the entity's
own name; and
new text end
new text begin
(2) sets or changes the wholesale acquisition cost of the prescription drug product it
manufacturers or markets.
new text end
new text begin
"Prescription drug product" means a brand name
drug, a generic drug, a biologic, or a biosimilar.
new text end
new text begin
"Wholesale acquisition cost" or "WAC"
has the meaning given in United States Code, title 42, section 1395W-3a(c)(6)(B).
new text end
new text begin
The commissioner of commerce shall establish the
Prescription Drug Affordability Board, which shall be governed as a board under section
15.012, paragraph (a), to protect consumers, state and local governments, health plan
companies, providers, pharmacies, and other health care system stakeholders from
unaffordable costs of certain prescription drugs.
new text end
new text begin
(a) The Prescription Drug Affordability Board consists of nine
members appointed as follows:
new text end
new text begin
(1) seven voting members appointed by the governor;
new text end
new text begin
(2) one nonvoting member appointed by the majority leader of the senate; and
new text end
new text begin
(3) one nonvoting member appointed by the speaker of the house.
new text end
new text begin
(b) All members appointed must have knowledge and demonstrated expertise in
pharmaceutical economics and finance or health care economics and finance. A member
must not be an employee of, a board member of, or a consultant to a manufacturer or trade
association for manufacturers, or a pharmacy benefit manager or trade association for
pharmacy benefit managers.
new text end
new text begin
(c) Initial appointments must be made by January 1, 2024.
new text end
new text begin
(a) Board appointees shall serve four-year terms, except that initial
appointees shall serve staggered terms of two, three, or four years as determined by lot by
the secretary of state. A board member shall serve no more than two consecutive terms.
new text end
new text begin
(b) A board member may resign at any time by giving written notice to the board.
new text end
new text begin
(a) The governor shall designate an acting chair from
the members appointed by the governor.
new text end
new text begin
(b) The board shall elect a chair to replace the acting chair at the first meeting of the
board by a majority of the members. The chair shall serve for one year.
new text end
new text begin
(c) The board shall elect a vice-chair and other officers from its membership as it deems
necessary.
new text end
new text begin
(a) The board shall hire an executive director and
other staff, who shall serve in the unclassified service. The executive director must have
knowledge and demonstrated expertise in pharmacoeconomics, pharmacology, health policy,
health services research, medicine, or a related field or discipline.
new text end
new text begin
(b) The commissioner of health shall provide technical assistance to the board. The board
may also employ or contract for professional and technical assistance as the board deems
necessary to perform the board's duties.
new text end
new text begin
(c) The attorney general shall provide legal services to the board.
new text end
new text begin
The board members shall not receive compensation but may
receive reimbursement for expenses as authorized under section 15.059, subdivision 3.
new text end
new text begin
(a) Meetings of the board are subject to chapter 13D. The board shall
meet publicly at least every three months to review prescription drug product information
submitted to the board under section 62J.90. If there are no pending submissions, the chair
of the board may cancel or postpone the required meeting. The board may meet in closed
session when reviewing proprietary information, as determined under the standards developed
in accordance with section 62J.91, subdivision 3.
new text end
new text begin
(b) The board shall announce each public meeting at least three weeks prior to the
scheduled date of the meeting. Any materials for the meeting shall be made public at least
two weeks prior to the scheduled date of the meeting.
new text end
new text begin
(c) At each public meeting, the board shall provide the opportunity for comments from
the public, including the opportunity for written comments to be submitted to the board
prior to a decision by the board.
new text end
new text begin
The governor shall appoint a 18-member stakeholder
advisory council to provide advice to the board on drug cost issues and to represent
stakeholders' views. The governor shall appoint the members of the advisory council based
on the members' knowledge and demonstrated expertise in one or more of the following
areas: the pharmaceutical business; practice of medicine; patient perspectives; health care
cost trends and drivers; clinical and health services research; and the health care marketplace.
new text end
new text begin
The council's membership shall consist of the following:
new text end
new text begin
(1) two members representing patients and health care consumers;
new text end
new text begin
(2) two members representing health care providers;
new text end
new text begin
(3) one member representing health plan companies;
new text end
new text begin
(4) two members representing employers, with one member representing large employers
and one member representing small employers;
new text end
new text begin
(5) one member representing government employee benefit plans;
new text end
new text begin
(6) one member representing pharmaceutical manufacturers;
new text end
new text begin
(7) one member who is a health services clinical researcher;
new text end
new text begin
(8) one member who is a pharmacologist;
new text end
new text begin
(9) one member representing the commissioner of health with expertise in health
economics;
new text end
new text begin
(10) one member representing pharmaceutical wholesalers;
new text end
new text begin
(11) one member representing pharmacy benefit managers;
new text end
new text begin
(12) one member from the Rare Disease Advisory Council;
new text end
new text begin
(13) one member representing generic drug manufacturers;
new text end
new text begin
(14) one member representing pharmaceutical distributors; and
new text end
new text begin
(15) one member who is an oncologist who is not employed by, under contract with, or
otherwise affiliated with a hospital.
new text end
new text begin
(a) The initial appointments to the advisory council must be made by
January 1, 2024. The initial appointed advisory council members shall serve staggered terms
of two, three, or four years, determined by lot by the secretary of state. Following the initial
appointments, the advisory council members shall serve four-year terms.
new text end
new text begin
(b) Removal and vacancies of advisory council members shall be governed by section
15.059.
new text end
new text begin
Advisory council members may be compensated according to
section 15.059, except that those advisory council members designated in subdivision 2,
clauses (10) to (15), must not be compensated.
new text end
new text begin
Meetings of the advisory council are subject to chapter 13D. The
advisory council shall meet publicly at least every three months to advise the board on drug
cost issues related to the prescription drug product information submitted to the board under
section 62J.90.
new text end
new text begin
Notwithstanding section 15.059, the advisory council shall not
expire.
new text end
new text begin
For purposes of this section, "conflict of interest" means a
financial or personal association that has the potential to bias or have the appearance of
biasing a person's decisions in matters related to the board, the advisory council, or in the
conduct of the board's or council's activities. A conflict of interest includes any instance in
which a person, a person's immediate family member, including a spouse, parent, child, or
other legal dependent, or an in-law of any of the preceding individuals, has received or
could receive a direct or indirect financial benefit of any amount deriving from the result
or findings of a decision or determination of the board. For purposes of this section, a
financial benefit includes honoraria, fees, stock, the value of the member's, immediate family
member's, or in-law's stock holdings, and any direct financial benefit deriving from the
finding of a review conducted under sections 62J.85 to 62J.95. Ownership of securities is
not a conflict of interest if the securities are: (1) part of a diversified mutual or exchange
traded fund; or (2) in a tax-deferred or tax-exempt retirement account that is administered
by an independent trustee.
new text end
new text begin
(a) Prior to the acceptance of an appointment or employment, or prior
to entering into a contractual agreement, a board or advisory council member, board staff
member, or third-party contractor must disclose to the appointing authority or the board
any conflicts of interest. The information disclosed must include the type, nature, and
magnitude of the interests involved.
new text end
new text begin
(b) A board member, board staff member, or third-party contractor with a conflict of
interest with regard to any prescription drug product under review must recuse themselves
from any discussion, review, decision, or determination made by the board relating to the
prescription drug product.
new text end
new text begin
(c) Any conflict of interest must be disclosed in advance of the first meeting after the
conflict is identified or within five days after the conflict is identified, whichever is earlier.
new text end
new text begin
Board members, board staff, or third-party contractors are
prohibited from accepting gifts, bequeaths, or donations of services or property that raise
the specter of a conflict of interest or have the appearance of injecting bias into the activities
of the board.
new text end
new text begin
(a) The commissioner of health shall provide to the board the information reported
to the commissioner by drug manufacturers under section 62J.84, subdivisions 3, 4, and 5.
The commissioner shall provide this information to the board within 30 days of the date the
information is received from drug manufacturers.
new text end
new text begin
(b) The board may subscribe to one or more prescription drug pricing files, such as
Medispan or FirstDatabank, or as otherwise determined by the board.
new text end
new text begin
(a) The board, in
consultation with the advisory council, shall identify selected prescription drug products
based on the following criteria:
new text end
new text begin
(1) brand name drugs or biologics for which the WAC increases by more than 15 percent
or by more than $3,000 during any 12-month period or course of treatment if less than 12
months, after adjusting for changes in the consumer price index (CPI);
new text end
new text begin
(2) brand name drugs or biologics with a WAC of $60,000 or more per calendar year
or per course of treatment;
new text end
new text begin
(3) biosimilar drugs that have a WAC that is not at least 20 percent lower than the
referenced brand name biologic at the time the biosimilar is introduced; and
new text end
new text begin
(4) generic drugs for which the WAC:
new text end
new text begin
(i) is $100 or more, after adjusting for changes in the CPI, for:
new text end
new text begin
(A) a 30-day supply;
new text end
new text begin
(B) a course of treatment lasting less than 30 days; or
new text end
new text begin
(C) one unit of the drug, if the labeling approved by the Food and Drug Administration
does not recommend a finite dosage; and
new text end
new text begin
(ii) increased by 200 percent or more during the immediate preceding 12-month period,
as determined by the difference between the resulting WAC and the average WAC reported
over the preceding 12 months, after adjusting for changes in the CPI.
new text end
new text begin
The board is not required to identify all prescription drug products that meet the criteria in
this paragraph.
new text end
new text begin
(b) The board, in consultation with the advisory council and the commissioner of health,
may identify prescription drug products not described in paragraph (a) that may impose
costs that create significant affordability challenges for the state health care system or for
patients, including but not limited to drugs to address public health emergencies.
new text end
new text begin
(c) The board shall make available to the public the names and related price information
of the prescription drug products identified under this subdivision, with the exception of
information determined by the board to be proprietary under the standards developed by
the board under section 62J.91, subdivision 3, and information provided by the commissioner
of health classified as not public data under section 13.02, subdivision 8a, or as trade secret
information under section 13.37, subdivision 1, paragraph (b), or as trade secret information
under the Defend Trade Secrets Act of 2016, United States Code, title 18, section 1836, as
amended.
new text end
new text begin
(a) The board may initiate a cost
review of a prescription drug product identified by the board under this section.
new text end
new text begin
(b) The board shall consider requests by the public for the board to proceed with a cost
review of any prescription drug product identified under this section.
new text end
new text begin
(c) If there is no consensus among the members of the board on whether to initiate a
cost review of a prescription drug product, any member of the board may request a vote to
determine whether to review the cost of the prescription drug product.
new text end
new text begin
Once a decision by the board has been made to proceed with
a cost review of a prescription drug product, the board shall conduct the review and make
a determination as to whether appropriate utilization of the prescription drug under review,
based on utilization that is consistent with the United States Food and Drug Administration
(FDA) label or standard medical practice, has led or will lead to affordability challenges
for the state health care system or for patients.
new text end
new text begin
In reviewing the cost of a prescription drug product,
the board may consider the following factors:
new text end
new text begin
(1) the price at which the prescription drug product has been and will be sold in the state;
new text end
new text begin
(2) manufacturer monetary price concessions, discounts, or rebates, and drug-specific
patient assistance;
new text end
new text begin
(3) the price of therapeutic alternatives;
new text end
new text begin
(4) the cost to group purchasers based on patient access consistent with the FDA-labeled
indications and standard medical practice;
new text end
new text begin
(5) measures of patient access, including cost-sharing and other metrics;
new text end
new text begin
(6) the extent to which the attorney general or a court has determined that a price increase
for a generic or off-patent prescription drug product was excessive under sections 62J.842
and 62J.844;
new text end
new text begin
(7) any information a manufacturer chooses to provide; and
new text end
new text begin
(8) any other factors as determined by the board.
new text end
new text begin
(a) Any submission made to the board
related to a drug cost review must be made available to the public with the exception of
information determined by the board to be proprietary and information provided by the
commissioner of health classified as not public data under section 13.02, subdivision 8a, or
as trade secret information under section 13.37, subdivision 1, paragraph (b), or as trade
secret information under the Defend Trade Secrets Act of 2016, United States Code, title
18, section 1836, as amended.
new text end
new text begin
(b) The board shall establish the standards for the information to be considered proprietary
under paragraph (a) and section 62J.90, subdivision 2, including standards for heightened
consideration of proprietary information for submissions for a cost review of a drug that is
not yet approved by the FDA.
new text end
new text begin
(c) Prior to the board establishing the standards under paragraph (b), the public shall be
provided notice and the opportunity to submit comments.
new text end
new text begin
(d) The establishment of standards under this subdivision is exempt from the rulemaking
requirements under chapter 14, and section 14.386 does not apply.
new text end
new text begin
(a) In the event the board finds that the spending
on a prescription drug product reviewed under section 62J.91 creates an affordability
challenge for the state health care system or for patients, the board shall establish an upper
payment limit after considering:
new text end
new text begin
(1) extraordinary supply costs, if applicable;
new text end
new text begin
(2) the range of prices at which the drug is sold in the United States according to one or
more pricing files accessed under section 62J.90, subdivision 1, and the range at which
pharmacies are reimbursed in Canada; and
new text end
new text begin
(3) any other relevant pricing and administrative cost information for the drug.
new text end
new text begin
(b) An upper payment limit applies to all purchases of, and payer reimbursements for,
a prescription drug that is dispensed or administered to individuals in the state in person,
by mail, or by other means, and for which an upper payment limit has been established.
new text end
new text begin
(c) In determining whether a drug creates an affordability challenge or determining an
upper payment limit amount, the board may not use cost-effectiveness analyses that include
the cost-per-quality adjusted life year or similar measure to identify subpopulations for
which a treatment would be less cost-effective due to severity of illness, age, or pre-existing
disability. For any treatment that extends life, if the board uses cost-effectiveness results,
it must use results that weigh the value of all additional lifetime gained equally for all
patients no matter their severity of illness, age, or pre-existing disability.
new text end
new text begin
(a) An
upper payment limit may take effect no sooner than 120 days following the date of its public
release by the board.
new text end
new text begin
(b) When setting an upper payment limit for a drug subject to the Medicare maximum
fair price under United States Code, title 42, section 1191(c), the board shall set the upper
payment limit at the Medicare maximum fair price.
new text end
new text begin
(c) Health plan companies and pharmacy benefit managers shall report annually to the
board, in the form and manner specified by the board, on how cost savings resulting from
the establishment of an upper payment limit have been used by the health plan company or
pharmacy benefit manager to benefit enrollees, including but not limited to reducing enrollee
cost-sharing.
new text end
new text begin
(a) The board shall, and other persons may, notify the Office
of the Attorney General of a potential failure by an entity subject to an upper payment limit
to comply with that limit.
new text end
new text begin
(b) If the Office of the Attorney General finds that an entity was noncompliant with the
upper payment limit requirements, the attorney general may pursue remedies consistent
with chapter 8 or appropriate criminal charges if there is evidence of intentional profiteering.
new text end
new text begin
(c) An entity who obtains price concessions from a drug manufacturer that result in a
lower net cost to the stakeholder than the upper payment limit established by the board is
not considered noncompliant.
new text end
new text begin
(d) The Office of the Attorney General may provide guidance to stakeholders concerning
activities that could be considered noncompliant.
new text end
new text begin
(a) Persons affected by a decision of the board may request an appeal
of the board's decision within 30 days of the date of the decision. The board shall hear the
appeal and render a decision within 60 days of the hearing.
new text end
new text begin
(b) All appeal decisions are subject to judicial review in accordance with chapter 14.
new text end
new text begin
Beginning March 1, 2024, and each March 1 thereafter, the board shall submit a report
to the governor and legislature on general price trends for prescription drug products and
the number of prescription drug products that were subject to the board's cost review and
analysis, including the result of any analysis as well as the number and disposition of appeals
and judicial reviews.
new text end
new text begin
(a) Nothing in sections 62J.85 to 62J.95 shall be construed to require ERISA plans or
Medicare Part D plans to comply with decisions of the board. ERISA plans or Medicare
Part D plans are free to choose to exceed the upper payment limit established by the board
under section 62J.92.
new text end
new text begin
(b) Providers who dispense and administer drugs in the state must bill all payers no more
than the upper payment limit without regard to whether an ERISA plan or Medicare Part
D plan chooses to reimburse the provider in an amount greater than the upper payment limit
established by the board.
new text end
new text begin
(c) For purposes of this section, an ERISA plan or group health plan is an employee
welfare benefit plan established by or maintained by an employer or an employee
organization, or both, that provides employer sponsored health coverage to employees and
the employee's dependents and is subject to the Employee Retirement Income Security Act
of 1974 (ERISA).
new text end
new text begin
If any provision of sections 62J.85 to 62J.94 or the application thereof to any person or
circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity
does not affect other provisions or any other application of sections 62J.85 to 62J.94 that
can be given effect without the invalid provision or application.
new text end
Minnesota Statutes 2022, section 62K.10, subdivision 4, is amended to read:
new text begin (a) new text end Each designated provider network must include a
sufficient number and type of providers, including providers that specialize in mental health
and substance use disorder services, to ensure that covered services are available to all
enrollees without unreasonable delay. In determining network adequacy, the commissioner
of health shall consider availability of services, including the following:
(1) primary care physician services are available and accessible 24 hours per day, seven
days per week, within the network area;
(2) a sufficient number of primary care physicians have hospital admitting privileges at
one or more participating hospitals within the network area so that necessary admissions
are made on a timely basis consistent with generally accepted practice parameters;
(3) specialty physician service is available through the network or contract arrangement;
(4) mental health and substance use disorder treatment providersnew text begin , including but not
limited to psychiatric residential treatment facilities,new text end are available and accessible through
the network or contract arrangement;
(5) to the extent that primary care services are provided through primary care providers
other than physicians, and to the extent permitted under applicable scope of practice in state
law for a given provider, these services shall be available and accessible; and
(6) the network has available, either directly or through arrangements, appropriate and
sufficient personnel, physical resources, and equipment to meet the projected needs of
enrollees for covered health care services.
new text begin
(b) The commissioner must determine network sufficiency in a manner that is consistent
with the requirements of this section and may establish sufficiency by referencing any
reasonable criteria, which may include but is not limited to:
new text end
new text begin
(1) provider-covered person ratios by specialty;
new text end
new text begin
(2) primary care professional-covered person ratios;
new text end
new text begin
(3) geographic accessibility of providers;
new text end
new text begin
(4) geographic variation and population dispersion;
new text end
new text begin
(5) waiting times for an appointment with participating providers;
new text end
new text begin
(6) hours of operation;
new text end
new text begin
(7) the ability of the network to meet the needs of covered persons, which may include:
new text end
new text begin
(i) low-income persons;
new text end
new text begin
(ii) children and adults with serious, chronic, or complex health conditions, physical
disabilities, or mental illness; or
new text end
new text begin
(iii) persons with limited English proficiency and persons from underserved communities;
new text end
new text begin
(8) other health care service delivery system options, including telemedicine or telehealth,
mobile clinics, centers of excellence, and other ways of delivering care; and
new text end
new text begin
(9) the volume of technological and specialty care services available to serve the needs
of covered persons that need technologically advanced or specialty care services.
new text end
new text begin
The amendment to paragraph (a) is effective July 1, 2023.
Paragraph (b) is effective January 1, 2025, and applies to health plans offered, issued, or
renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62Q.096, is amended to read:
new text begin (a) new text end If a health plan company has initially credentialed, as providers in its provider network,
individual providers employed by or under contract with an entity that:
(1) is authorized to bill under section 256B.0625, subdivision 5;
(2) is a mental health clinic certified under section 245I.20;
(3) is designated an essential community provider under section 62Q.19; and
(4) is under contract with the health plan company to provide mental health services,
the health plan company must continue to credential at least the same number of providers
from that entity, as long as those providers meet the health plan company's credentialing
standards.
new text begin
(b) In order to ensure timely access by patients to mental health services, between July
1, 2023, and June 30, 2025, a health plan company must credential and enter into a contract
for mental health services with any provider of mental health services that:
new text end
new text begin
(1) meets the health plan company's credential requirements. For purposes of credentialing
under this paragraph, a health plan company may waive credentialing requirements that are
not directly related to quality of care in order to ensure patient access to providers from
underserved communities or to providers in rural areas;
new text end
new text begin
(2) seeks to receive a credential from the health plan company;
new text end
new text begin
(3) agrees to the health plan company's contract terms. The contract shall include payment
rates that are usual and customary for the services provided;
new text end
new text begin
(4) is accepting new patients; and
new text end
new text begin
(5) is not already under a contract with the health plan company under a separate tax
identification number or, if already under a contract with the health plan company, has
provided notice to the health plan company of termination of the existing contract.
new text end
new text begin (c) new text end A health plan company shall not refuse to credential these providers on the grounds
that their provider network hasnew text begin :
new text end
new text begin (1)new text end a sufficient number of providers of that typenew text begin , including but not limited to the provider
types identified in paragraph (a); or
new text end
new text begin (2) a sufficient number of providers of mental health services in the aggregatenew text end .
Minnesota Statutes 2022, section 62Q.19, subdivision 1, is amended to read:
(a) The commissioner shall designate essential community
providers. The criteria for essential community provider designation shall be the following:
(1) a demonstrated ability to integrate applicable supportive and stabilizing services with
medical care for uninsured persons and high-risk and special needs populations, underserved,
and other special needs populations; and
(2) a commitment to serve low-income and underserved populations by meeting the
following requirements:
(i) has nonprofit status in accordance with chapter 317A;
(ii) has tax-exempt status in accordance with the Internal Revenue Service Code, section
501(c)(3);
(iii) charges for services on a sliding fee schedule based on current poverty income
guidelines; and
(iv) does not restrict access or services because of a client's financial limitation;
(3) status as a local government unit as defined in section 62D.02, subdivision 11, a
hospital district created or reorganized under sections 447.31 to 447.37, an Indian Tribal
government, an Indian health service unit, or a community health board as defined in chapter
145A;
(4) a former state hospital that specializes in the treatment of cerebral palsy, spina bifida,
epilepsy, closed head injuries, specialized orthopedic problems, and other disabling
conditions;
(5) a sole community hospital. For these rural hospitals, the essential community provider
designation applies to all health services provided, including both inpatient and outpatient
services. For purposes of this section, "sole community hospital" means a rural hospital
that:
(i) is eligible to be classified as a sole community hospital according to Code of Federal
Regulations, title 42, section 412.92, or is located in a community with a population of less
than 5,000 and located more than 25 miles from a like hospital currently providing acute
short-term services;
(ii) has experienced net operating income losses in two of the previous three most recent
consecutive hospital fiscal years for which audited financial information is available; and
(iii) consists of 40 or fewer licensed beds;
(6) a birth center licensed under section 144.615; deleted text begin or
deleted text end
(7) a hospital and affiliated specialty clinics that predominantly serve patients who are
under 21 years of age and meet the following criteria:
(i) provide intensive specialty pediatric services that are routinely provided in fewer
than five hospitals in the state; and
(ii) serve children from at least one-half of the counties in the statedeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(8) a psychiatric residential treatment facility, as defined in section 256B.0625,
subdivision 45a, paragraph (b), that is certified by the commissioner of health and licensed
by the commissioner of human services.
new text end
(b) Prior to designation, the commissioner shall publish the names of all applicants in
the State Register. The public shall have 30 days from the date of publication to submit
written comments to the commissioner on the application. No designation shall be made
by the commissioner until the 30-day period has expired.
(c) The commissioner may designate an eligible provider as an essential community
provider for all the services offered by that provider or for specific services designated by
the commissioner.
(d) For the purpose of this subdivision, supportive and stabilizing services include at a
minimum, transportation, child care, cultural, and linguistic services where appropriate.
new text begin
This section is effective January 1, 2025, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62Q.46, subdivision 1, is amended to read:
(a) "Preventive items and
services" has the meaning specified in the Affordable Care Act.new text begin Preventive items and services
includes:
new text end
new text begin
(1) evidence-based items or services that have in effect a rating of A or B in the current
recommendations of the United States Preventive Services Task Force with respect to the
individual involved;
new text end
new text begin
(2) immunizations for routine use in children, adolescents, and adults that have in effect
a recommendation from the Advisory Committee on Immunization Practices of the Centers
for Disease Control and Prevention with respect to the individual involved. For purposes
of this clause, a recommendation from the Advisory Committee on Immunization Practices
of the Centers for Disease Control and Prevention is considered in effect after the
recommendation has been adopted by the Director of the Centers for Disease Control and
Prevention, and a recommendation is considered to be for routine use if the recommendation
is listed on the Immunization Schedules of the Centers for Disease Control and Prevention;
new text end
new text begin
(3) with respect to infants, children, and adolescents, evidence-informed preventive care
and screenings provided for in comprehensive guidelines supported by the Health Resources
and Services Administration;
new text end
new text begin
(4) with respect to women, additional preventive care and screenings that are not listed
with a rating of A or B by the United States Preventive Services Task Force but that are
provided for in comprehensive guidelines supported by the Health Resources and Services
Administration;
new text end
new text begin
(5) all contraceptive methods established in guidelines published by the United States
Food and Drug Administration;
new text end
new text begin
(6) screenings for human immunodeficiency virus for:
new text end
new text begin
(i) all individuals at least 15 years of age but less than 65 years of age; and
new text end
new text begin
(ii) all other individuals with increased risk of human immunodeficiency virus infection
according to guidance from the Centers for Disease Control;
new text end
new text begin
(7) all preexposure prophylaxis when used for the prevention or treatment of human
immunodeficiency virus, including but not limited to all preexposure prophylaxis, as defined
in any guidance by the United States Preventive Services Task Force or the Centers for
Disease Control, including the June 11, 2019, Preexposure Prophylaxis for the Prevention
of HIV Infection United States Preventive Services Task Force Recommendation Statement;
and
new text end
new text begin
(8) all postexposure prophylaxis when used for the prevention or treatment of human
immunodeficiency virus, including but not limited to all postexposure prophylaxis as defined
in any guidance by the United States Preventive Services Task Force or the Centers for
Disease Control.
new text end
(b) A health plan company must provide coverage for preventive items and services at
a participating provider without imposing cost-sharing requirements, including a deductible,
coinsurance, or co-payment. Nothing in this section prohibits a health plan company that
has a network of providers from excluding coverage or imposing cost-sharing requirements
for preventive items or services that are delivered by an out-of-network provider.
(c) A health plan company is not required to provide coverage for any items or services
specified in any recommendation or guideline described in paragraph (a) if the
recommendation or guideline is no longer included as a preventive item or service as defined
in paragraph (a). Annually, a health plan company must determine whether any additional
items or services must be covered without cost-sharing requirements or whether any items
or services are no longer required to be covered.
(d) Nothing in this section prevents a health plan company from using reasonable medical
management techniques to determine the frequency, method, treatment, or setting for a
preventive item or service to the extent not specified in the recommendation or guideline.
(e) This section does not apply to grandfathered plans.
(f) This section does not apply to plans offered by the Minnesota Comprehensive Health
Association.
Minnesota Statutes 2022, section 62Q.46, subdivision 3, is amended to read:
Nothing in this section prohibits a health
plan company from providing coverage for preventive items and services in addition to
those specified deleted text begin in the Affordable Care Actdeleted text end new text begin under subdivision 1, paragraph (a)new text end , or from
denying coverage for preventive items and services that are not recommended as preventive
items and servicesnew text begin specifiednew text end under deleted text begin the Affordable Care Actdeleted text end new text begin subdivision 1, paragraph (a)new text end . A
health plan company may impose cost-sharing requirements for a treatment not described
deleted text begin in the Affordable Care Actdeleted text end new text begin under subdivision 1, paragraph (a),new text end even if the treatment results
from a preventive item or service described deleted text begin in the Affordable Care Actdeleted text end new text begin under subdivision
1, paragraph (a)new text end .
new text begin
(a) The Mental Health Parity and Substance Abuse Accountability Office is established
within the Department of Commerce to create and execute effective strategies for
implementing the requirements under:
new text end
new text begin
(1) section 62Q.47;
new text end
new text begin
(2) the federal Mental Health Parity Act of 1996, Public Law 104-204;
new text end
new text begin
(3) the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction
Equity Act of 2008, Public Law 110-343, division C, sections 511 and 512;
new text end
new text begin
(4) the Affordable Care Act, as defined under section 62A.011, subdivision 1a; and
new text end
new text begin
(5) amendments made to, and federal guidance or regulations issued or adopted under,
the acts listed under clauses (2) to (4).
new text end
new text begin
(b) The office may oversee compliance reviews, conduct and lead stakeholder
engagement, review consumer and provider complaints, and serve as a resource for ensuring
health plan compliance with mental health and substance abuse requirements.
new text end
Minnesota Statutes 2022, section 62Q.47, is amended to read:
(a) All health plans, as defined in section 62Q.01, that provide coverage for alcoholism,
mental health, or chemical dependency services, must comply with the requirements of this
section.
(b) Cost-sharing requirements and benefit or service limitations for outpatient mental
health and outpatient chemical dependency and alcoholism services, except for persons
placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to
9530.6655, must not place a greater financial burden on the insured or enrollee, or be more
restrictive than those requirements and limitations for outpatient medical services.
(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital
mental health new text begin services, psychiatric residential treatment facility services, new text end and inpatient
hospital and residential chemical dependency and alcoholism services, except for persons
placed in chemical dependency services under Minnesota Rules, parts 9530.6600 to
9530.6655, must not place a greater financial burden on the insured or enrollee, or be more
restrictive than those requirements and limitations for inpatient hospital medical services.
(d) A health plan company must not impose an NQTL with respect to mental health and
substance use disorders in any classification of benefits unless, under the terms of the health
plan as written and in operation, any processes, strategies, evidentiary standards, or other
factors used in applying the NQTL to mental health and substance use disorders in the
classification are comparable to, and are applied no more stringently than, the processes,
strategies, evidentiary standards, or other factors used in applying the NQTL with respect
to medical and surgical benefits in the same classification.
(e) All health plans must meet the requirements of the federal Mental Health Parity Act
of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and
Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal
guidance or regulations issued under, those acts.
(f) The commissioner may require information from health plan companies to confirm
that mental health parity is being implemented by the health plan company. Information
required may include comparisons between mental health and substance use disorder
treatment and other medical conditions, including a comparison of prior authorization
requirements, drug formulary design, claim denials, rehabilitation services, and other
information the commissioner deems appropriate.
(g) Regardless of the health care provider's professional license, if the service provided
is consistent with the provider's scope of practice and the health plan company's credentialing
and contracting provisions, mental health therapy visits and medication maintenance visits
shall be considered primary care visits for the purpose of applying any enrollee cost-sharing
requirements imposed under the enrollee's health plan.
new text begin
(h) All health plan companies offering health plans that provide coverage for alcoholism,
mental health, or chemical dependency benefits shall provide reimbursement for the benefits
delivered through the psychiatric Collaborative Care Model, which must include the following
Current Procedural Terminology or Healthcare Common Procedure Coding System billing
codes:
new text end
new text begin
(1) 99492;
new text end
new text begin
(2) 99493;
new text end
new text begin
(3) 99494;
new text end
new text begin
(4) G2214; and
new text end
new text begin
(5) G0512.
new text end
new text begin
This paragraph does not apply to managed care plans or county-based purchasing plans
when the plan provides coverage to public health care program enrollees under chapter
256B or 256L.
new text end
new text begin
(i) The commissioner of commerce shall update the list of codes in paragraph (h) if any
alterations or additions to the billing codes for the psychiatric Collaborative Care Model
are made.
new text end
new text begin
(j) "Psychiatric Collaborative Care Model" means the evidence-based, integrated
behavioral health service delivery method described at Federal Register, volume 81, page
80230, which includes a formal collaborative arrangement among a primary care team
consisting of a primary care provider, a care manager, and a psychiatric consultant, and
includes but is not limited to the following elements:
new text end
new text begin
(1) care directed by the primary care team;
new text end
new text begin
(2) structured care management;
new text end
new text begin
(3) regular assessments of clinical status using validated tools; and
new text end
new text begin
(4) modification of treatment as appropriate.
new text end
deleted text begin (h)deleted text end new text begin (k)new text end By June 1 of each year, beginning June 1, 2021, the commissioner of commerce,
in consultation with the commissioner of health, shall submit a report on compliance and
oversight to the chairs and ranking minority members of the legislative committees with
jurisdiction over health and commerce. The report must:
(1) describe the commissioner's process for reviewing health plan company compliance
with United States Code, title 42, section 18031(j), any federal regulations or guidance
relating to compliance and oversight, and compliance with this section and section 62Q.53;
(2) identify any enforcement actions taken by either commissioner during the preceding
12-month period regarding compliance with parity for mental health and substance use
disorders benefits under state and federal law, summarizing the results of any market conduct
examinations. The summary must include: (i) the number of formal enforcement actions
taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the
subject matter of each enforcement action, including quantitative and nonquantitative
treatment limitations;
(3) detail any corrective action taken by either commissioner to ensure health plan
company compliance with this section, section 62Q.53, and United States Code, title 42,
section 18031(j); and
(4) describe the information provided by either commissioner to the public about
alcoholism, mental health, or chemical dependency parity protections under state and federal
law.
The report must be written in nontechnical, readily understandable language and must be
made available to the public by, among other means as the commissioners find appropriate,
posting the report on department websites. Individually identifiable information must be
excluded from the report, consistent with state and federal privacy protections.
new text begin
This section is effective January 1, 2025, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
new text begin
(a) A health plan must limit the amount of any
enrollee cost-sharing for prescription drugs prescribed to treat a chronic disease to no more
than: (1) $25 per one-month supply for each prescription drug, regardless of the amount or
type of medication required to fill the prescription; and (2) $50 per month in total for all
related medical supplies. The cost-sharing limit for related medical supplies does not increase
with the number of chronic diseases for which an enrollee is treated. Coverage under this
section shall not be subject to any deductible.
new text end
new text begin
(b) If application of this section before an enrollee has met the enrollee's plan deductible
results in: (1) health savings account ineligibility under United States Code, title 26, section
223; or (2) catastrophic health plan ineligibility under United States Code, title 42, section
18022(e), this section applies to the specific prescription drug or related medical supply
only after the enrollee has met the enrollee's plan deductible.
new text end
new text begin
(a) For purposes of this section, the following definitions apply.
new text end
new text begin
(b) "Chronic disease" means diabetes, asthma, and allergies requiring the use of
epinephrine auto-injectors.
new text end
new text begin
(c) "Cost-sharing" means co-payments and coinsurance.
new text end
new text begin
(d) "Related medical supplies" means syringes, insulin pens, insulin pumps, test strips,
glucometers, continuous glucose monitors, epinephrine auto-injectors, asthma inhalers, and
other medical supply items necessary to effectively and appropriately treat a chronic disease
or administer a prescription drug prescribed to treat a chronic disease.
new text end
new text begin
This section is effective January 1, 2025, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 62Q.735, subdivision 1, is amended to read:
(a) Before requiring a health care provider to sign
a contract, a health plan company shall give to the provider a complete copy of the proposed
contract, including:
(1) all attachments and exhibits;
(2) operating manuals;
(3) a general description of the health plan company's health service coding guidelines
and requirement for procedures and diagnoses with modifiers, and multiple procedures; and
(4) all guidelines and treatment parameters incorporated or referenced in the contract.
(b) The health plan company shall make available to the provider the fee schedule or a
method or process that allows the provider to determine the fee schedule for each health
care service to be provided under the contract.
(c) deleted text begin Notwithstanding paragraph (b), a health plan company that is a dental plan
organization, as defined in section 62Q.76, shall disclose information related to the individual
contracted provider's expected reimbursement from the dental plan organization.deleted text end Nothing
in this section requires a dental plan organization to disclose the plan's aggregate maximum
allowable fee table used to determine other providers' fees. The contracted provider must
not release this information in any way that would violate any state or federal antitrust law.
Minnesota Statutes 2022, section 62Q.735, subdivision 5, is amended to read:
deleted text begin (a)deleted text end A health plan company shall provide, upon request, any
additional fees or fee schedules relevant to the particular provider's practice beyond those
provided with the renewal documents for the next contract year to all participating providers,
excluding claims paid under the pharmacy benefit. Health plan companies may fulfill the
requirements of this section by making the full fee schedules available through a secure
web portal for contracted providers.
deleted text begin
(b) A dental organization may satisfy paragraph (a) by complying with section 62Q.735,
subdivision 1, paragraph (c).
deleted text end
Minnesota Statutes 2022, section 62Q.76, is amended by adding a subdivision to
read:
new text begin
"Third party" means a person or entity that enters into a contract
with a dental organization or with another third party to gain access to the dental care services
or contractual discounts under a dental provider contract. Third party does not include an
enrollee of a dental organization or an employer or other group for whom the dental
organization provides administrative services.
new text end
Minnesota Statutes 2022, section 62Q.78, is amended by adding a subdivision to
read:
new text begin
A dental provider contract must include a method of
payment for dental care services in which no fees associated with the method of payment,
including credit card fees and fees related to payment in the form of digital or virtual
currency, are incurred by the dentist or dental clinic. Any fees that may be incurred from a
payment must be disclosed to a dentist prior to entering into or renewing a dental provider
contract. For purposes of this section, fees related to a provider's electronic claims processing
vendor, financial institution, or other vendor used by a provider to facilitate the submission
of claims are excluded.
new text end
Minnesota Statutes 2022, section 62Q.78, is amended by adding a subdivision to
read:
new text begin
(a) A dental organization may grant a third party access to
a dental provider contract or a provider's dental care services or contractual discounts
provided pursuant to a dental provider contract if, at the time the dental provider contract
is entered into or renewed, the dental organization allows a dentist to choose not to participate
in third-party access to the dental provider contract, without any penalty to the dentist. The
third-party access provision of the dental provider contract must be clearly identified. A
dental organization must not grant a third party access to the dental provider contract of any
dentist who does not participate in third-party access to the dental provider contract.
new text end
new text begin
(b) Notwithstanding paragraph (a), if a dental organization exists solely for the purpose
of recruiting dentists for dental provider contracts that establish a network to be leased to
third parties, the dentist waives the right to choose whether to participate in third-party
access.
new text end
new text begin
(c) A dental organization may grant a third party access to a dental provider contract,
or a dentist's dental care services or contractual discounts under a dental provider contract,
if the following requirements are met:
new text end
new text begin
(1) the dental organization lists all third parties that may have access to the dental provider
contract on the dental organization's website, which must be updated at least once every 90
days;
new text end
new text begin
(2) the dental provider contract states that the dental organization may enter into an
agreement with a third party that would allow the third party to obtain the dental
organization's rights and responsibilities as if the third party were the dental organization,
and the dentist chose to participate in third-party access at the time the dental provider
contract was entered into; and
new text end
new text begin
(3) the third party accessing the dental provider contract agrees to comply with all
applicable terms of the dental provider contract.
new text end
new text begin
(d) A dentist is not bound by and is not required to perform dental care services under
a dental provider contract granted to a third party in violation of this section.
new text end
new text begin
(e) This subdivision does not apply when:
new text end
new text begin
(1) the dental provider contract is for dental services provided under a public health plan
program, including but not limited to medical assistance, MinnesotaCare, Medicare, or
Medicare Advantage; or
new text end
new text begin
(2) access to a dental provider contract is granted to a dental organization, an entity
operating in accordance with the same brand licensee program as the dental organization
or other entity, or to an entity that is an affiliate of the dental organization, provided the
entity agrees to substantially similar terms and conditions as the originating dental provider
contract between the dental organization and the dentist or dental clinic. A list of the dental
organization's affiliates must be posted on the dental organization's website.
new text end
Minnesota Statutes 2022, section 62Q.81, subdivision 4, is amended to read:
For purposes of this section, "essential
health benefits" has the meaning given under section 1302(b) of the Affordable Care Act
and includes:
(1) ambulatory patient services;
(2) emergency services;
(3) hospitalization;
(4) laboratory services;
(5) maternity and newborn care;
(6) mental health and substance use disorder services, including behavioral health
treatment;
(7) pediatric services, including oral and vision care;
(8) prescription drugs;
(9) preventive and wellness services and chronic disease management;
(10) rehabilitative and habilitative services and devices; and
(11) additional essential health benefits included in the EHB-benchmark plan, as defined
under the Affordable Care Actnew text begin , and preventive items and services, as defined under section
62Q.46, subdivision 1, paragraph (a)new text end .
Minnesota Statutes 2022, section 62Q.81, is amended by adding a subdivision to
read:
new text begin
(a) A health plan company that offers individual health plans
must ensure that no less than one individual health plan at each level of coverage described
in subdivision 1, paragraph (b), clause (3), that the health plan company offers in each
geographic rating area the health plan company serves conforms to the standard plan
parameters determined by the commissioner under paragraph (e).
new text end
new text begin
(b) An individual health plan offered under this subdivision must be:
new text end
new text begin
(1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection
process;
new text end
new text begin
(2) marketed as standard plans and in the same manner as other individual health plans
offered by the health plan company; and
new text end
new text begin
(3) offered for purchase to any individual.
new text end
new text begin
(c) This subdivision does not apply to catastrophic plans, grandfathered plans, small
group health plans, large group health plans, health savings accounts, qualified high
deductible health benefit plans, limited health benefit plans, or short-term limited-duration
health insurance policies.
new text end
new text begin
(d) Health plan companies must meet the requirements in this subdivision separately for
plans offered through MNsure under chapter 62V and plans offered outside of MNsure.
new text end
new text begin
(e) The commissioner of commerce, in consultation with the commissioner of health,
must annually determine standard plan parameters, including but not limited to cost-sharing
structure and covered benefits, that comprise a standard plan in Minnesota.
new text end
new text begin
(f) Notwithstanding section 62A.65, subdivision 2, a health plan company may
discontinue offering a health plan under this subdivision if, three years after the date the
plan is initially offered, the plan has fewer than 75 enrollees. A health plan company
discontinuing a health plan under this paragraph may discontinue a health plan that has
fewer than 75 enrollees if it:
new text end
new text begin
(1) provides notice of the plan's discontinuation in writing, in a form prescribed by the
commissioner, to each enrollee of the plan at least 90 calendar days before the date the
coverage is discontinued;
new text end
new text begin
(2) offers on a guaranteed issue basis to each enrollee the option to purchase an individual
health plan currently being offered by the health plan company for individuals in that
geographic rating area. An enrollee who does not select an option shall be automatically
enrolled in the individual health plan closest in actuarial value to the enrollee's current plan;
and
new text end
new text begin
(3) acts uniformly without regard to any health status-related factor of an enrollee or an
enrollee's dependents who may become eligible for coverage.
new text end
new text begin
This section is effective January 1, 2025, and applies to individual
health plans offered, issued, or renewed on or after that date.
new text end
new text begin
(a) For purposes of this section, the following definition
applies.
new text end
new text begin
(b) "Clinician-administered drug" means an outpatient prescription drug other than a
vaccine that:
new text end
new text begin
(1) cannot reasonably be self-administered by the enrollee to whom the drug is prescribed
or by an individual assisting the enrollee with self-administration; and
new text end
new text begin
(2) is typically administered:
new text end
new text begin
(i) by a health care provider authorized to administer the drug, including when acting
under a physician's delegation and supervision; and
new text end
new text begin
(ii) in a physician's office, hospital outpatient infusion center, or other clinical setting.
new text end
new text begin
(a) A
specialty pharmacy that ships a clinician-administered drug to a health care provider or
pharmacy must:
new text end
new text begin
(1) comply with all federal laws regulating the shipment of drugs, including but not
limited to the U.S. Pharmacopeia General Chapter 800;
new text end
new text begin
(2) in response to questions from a health care provider or pharmacy, provide access to
a pharmacist or nurse employed by the specialty pharmacy 24 hours a day, 7 days a week;
new text end
new text begin
(3) allow an enrollee and health care provider to request a refill of a clinician-administered
drug on behalf of an enrollee, in accordance with the pharmacy benefit manager or health
carrier's utilization review procedures; and
new text end
new text begin
(4) adhere to the track and trace requirements, as defined by the federal Drug Supply
Chain Security Act, United States Code, title 21, section 360eee, et seq., for a
clinician-administered drug that needs to be compounded or manipulated.
new text end
new text begin
(b) For any clinician-administered drug dispensed by a specialty pharmacy selected by
the pharmacy benefit manager or health carrier, the requesting health care provider or their
designee must provide the requested date, approximate time, and place of delivery of a
clinician-administered drug at least five business days before the date of delivery. The
specialty pharmacy must require a signature upon receipt of the shipment when shipped to
a health care provider.
new text end
new text begin
(c) A pharmacy benefit manager or health carrier who requires dispensing of a
clinician-administered drug through a specialty pharmacy shall establish and disclose a
process which allows the health care provider or pharmacy to appeal and have exceptions
to the use of a specialty pharmacy when:
new text end
new text begin
(1) a drug is not delivered as specified in paragraph (b); or
new text end
new text begin
(2) an attending health care provider reasonably believes an enrollee may experience
immediate and irreparable harm without the immediate, onetime use of clinician-administered
drug that a health care provider or pharmacy has in stock.
new text end
new text begin
(d) A pharmacy benefit manager or health carrier shall not require a specialty pharmacy
to dispense a clinician-administered drug directly to an enrollee with the intention that the
enrollee will transport the clinician-administered drug to a health care provider for
administration.
new text end
new text begin
(e) A pharmacy benefit manager, health carrier, health care provider, or pharmacist shall
not require and may not deny the use of a home infusion or infusion site external to the
enrollee's provider office or clinic to administer a clinician-administered drug when requested
by an enrollee and such services are covered by the health plan and are available and
clinically appropriate as determined by the health care provider and delivered in accordance
with state law.
new text end
new text begin
This section is effective January 1, 2024, and applies to health
plans offered, issued, or renewed on or after that date.
new text end
new text begin
(a) For purposes of this section the following term has the
meaning given.
new text end
new text begin
(b) "Insurable property" means a residential property designated as meeting Fortified
program standards that include a hail supplement as administered by the Insurance Institute
for Business and Home Safety (IBHS).
new text end
new text begin
(a) An insurer must provide a premium discount or
an insurance rate reduction to an owner who builds or locates a new insurable property in
Minnesota.
new text end
new text begin
(b) An owner of insurable property claiming a premium discount or rate reduction under
this subdivision must submit and maintain a certificate issued by IBHS showing proof of
compliance with the Fortified program standards to the insurer prior to receiving the premium
discount or rate reduction. At the time of policy renewal an insurer may require evidence
that the issued certificate remains in good standing.
new text end
new text begin
(a) An insurer must provide a premium discount
or insurance rate reduction to an owner who retrofits an existing property to meet the
requirements to be an insurable property in Minnesota.
new text end
new text begin
(b) An owner of insurable property claiming a premium discount or rate reduction under
this subdivision must submit a certificate issued by IBHS showing proof of compliance
with the Fortified program standards to the insurer prior to receiving the premium discount
or rate reduction.
new text end
new text begin
(a) A participating insurer must submit to the commissioner actuarially
justified rates and a rating plan for a person who builds or locates a new insurable property
in Minnesota.
new text end
new text begin
(b) A participating insurer must submit to the commissioner actuarially justified rates
and a rating plan for a person who retrofits an existing property to meet the requirements
to be an insurable property.
new text end
new text begin
(c) A participating insurer may offer, in addition to the premium discount and insurance
rate reductions required under subdivisions 2 and 3, more generous mitigation adjustments
to an owner of insurable property.
new text end
new text begin
(d) Any premium discount, rate reduction, or mitigation adjustment offered by an insurer
under this section applies only to policies that include wind coverage and may be applied
to: (1) only the portion of the premium for wind coverage; or (2) the total premium, if the
insurer does not separate the premium for wind coverage in the insurer's rate filing.
new text end
new text begin
(e) A rate and rating plan submitted to the commissioner under this section must not be
used until 60 days after the rate and rating plan has been filed with the commissioner, unless
the commissioner approves the rate and rating plan before that time. A rating plan, rating
classification, and territories applicable to insurance written by a participating insurer and
any related statistics are subject to chapter 70A. When the commissioner is evaluating rate
and rating plans submitted under this section, the commissioner must evaluate:
new text end
new text begin
(i) evidence of cost savings directly attributable to the Fortified program standards as
administered by IBHS; and
new text end
new text begin
(ii) whether the cost savings are passed along in full to qualified policyholders.
new text end
new text begin
(f) A participating insurer must resubmit a rate and rating plan at least once every five
years following the initial submission under this section.
new text end
new text begin
(g) The commissioner may annually publish the premium savings that policyholders
experience pursuant to this section.
new text end
new text begin
(h) An insurer must provide the commissioner with all requested information necessary
for the commissioner to meet the requirements of this subdivision.
new text end
new text begin
This section may be cited as the "Strengthen Minnesota
Homes Act."
new text end
new text begin
(a) For purposes of this section, the terms in this subdivision have
the meanings given.
new text end
new text begin
(b) "Insurable property" has the meaning given in section 65A.298, subdivision 1.
new text end
new text begin
(c) "Program" means the Strengthen Minnesota Homes program established under this
section.
new text end
new text begin
The Strengthen Minnesota
Homes program is established within the Department of Commerce. The purpose of the
program is to provide grants to retrofit insurable property to resist loss due to common
perils, including but not limited to tornadoes or other catastrophic windstorm events.
new text end
new text begin
(a) A strengthen
Minnesota homes account is created as a separate account in the special revenue fund of
the state treasury. The account consists of money provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund and remains in the account until expended. The commissioner
must manage the account.
new text end
new text begin
(b) Money in the account is appropriated to the commissioner to pay for (1) grants issued
under the program, and (2) the reasonable costs incurred by the commissioner to administer
the program.
new text end
new text begin
(a) A grant under this section must be used to retrofit an insurable
property.
new text end
new text begin
(b) Grant money provided under this section must not be used for maintenance or repairs,
but may be used in conjunction with repairs or reconstruction necessitated by damage from
wind or hail.
new text end
new text begin
(c) A project funded by a grant under this section must be completed within three months
of the date the grant is approved. Failure to complete the project in a timely manner may
result in forfeiture of the grant.
new text end
new text begin
The commissioner must develop (1) administrative
procedures to implement this section, and (2) criteria used to determine whether an applicant
is eligible for a grant under this section.
new text end
new text begin
(a) To be eligible to work as a
contractor on a projected funded by a grant under this section, the contractor must meet all
of the following program requirements and must maintain a current copy of all certificates,
licenses, and proof of insurance coverage with the program office. The eligible contractor
must:
new text end
new text begin
(1) hold a valid residential building contractor and residential remodeler license issued
by the commissioner of labor and industry;
new text end
new text begin
(2) not be subject to disciplinary action by the commissioner of labor and industry;
new text end
new text begin
(3) hold any other valid state or jurisdictional business license or work permits required
by law;
new text end
new text begin
(4) possess an in-force general liability policy with $1,000,000 in liability coverage;
new text end
new text begin
(5) possess an in-force workers compensation policy;
new text end
new text begin
(6) possess a certificate of compliance from the commissioner of revenue;
new text end
new text begin
(7) successfully complete the Fortified Roof for High Wind and Hail training provided
by the IBHS and maintain an active certification. The training may be offered as separate
courses;
new text end
new text begin
(8) agree to the terms and successfully register as a vendor with the commissioner of
management and budget and receive direct deposit of payment for mitigation work performed
under the program;
new text end
new text begin
(9) maintain Internet access and keep a valid email address on file with the program and
remain active in the commissioner of management and budget's vendor and supplier portal
while working on the program;
new text end
new text begin
(10) maintain an active email address for the communication with the program;
new text end
new text begin
(11) successfully complete the program training; and
new text end
new text begin
(12) agree to follow program procedures and rules established under this section and by
the commissioner.
new text end
new text begin
(b) An eligible contractor must not have a financial interest, other than payment on
behalf of the homeowner, in any project for which the eligible contractor performs work
toward a fortified designation under the program. An eligible contractor is prohibited from
acting as the evaluator for a fortified designation on any project funded by the program. An
eligible contractor must report to the commissioner regarding any potential conflict of
interest before work commences on any job funded by the program.
new text end
new text begin
(a) To be eligible to work on the
program as an evaluator, the evaluator must meet all program eligibility requirements and
must submit to the commissioner and maintain a copy of all current certificates and licenses.
The evaluator must:
new text end
new text begin
(1) be in good standing with IBHS and maintain an active certification as a fortified
home evaluator for high wind and hail or a successor certification;
new text end
new text begin
(2) possess a Minnesota business license and be registered with the secretary of state;
and
new text end
new text begin
(3) successfully complete the program training.
new text end
new text begin
(b) An evaluator must not have a financial interest in any project that the evaluator
inspects for designation purposes for the program. An evaluator must not be an eligible
contractor or supplier of any material, product, or system installed in any home that the
evaluator inspects for designation purposes for the program. An evaluator must not be a
sales agent for any home being designated for the program. An evaluator must inform the
commissioner of any potential conflict of interest impacting the evaluator's participation in
the program.
new text end
new text begin
(a) The commissioner must review all applications
for completeness and must perform appropriate audits to verify (1) the accuracy of the
information on the application, and (2) that the applicant meets all eligibility rules. All
verified applicants must be placed in the order the application was received. Grants must
be awarded on a first-come, first-served basis, subject to availability of money for the
program.
new text end
new text begin
(b) When a grant is approved, an approval letter must be sent to the applicant.
new text end
new text begin
(c) An eligible contractor is prohibited from beginning work until a grant is approved.
new text end
new text begin
(d) In order to assure equitable distribution of grants in proportion to the income
demographics in counties where the program is made available, grant applications must be
accepted on a first-come, first-served basis. The commissioner may establish pilot projects
as needed to establish a sustainable program distribution system in any geographic area
within Minnesota.
new text end
new text begin
(a) After a grant application
is approved, the eligible contractor selected by the homeowner may begin the mitigation
work.
new text end
new text begin
(b) Once the mitigation work is completed, the eligible contractor must submit a copy
of the signed contract to the commissioner, along with an invoice seeking payment and an
affidavit stating the fortified standards were met by the work.
new text end
new text begin
(c) The IBHS evaluator must conduct all required evaluations, including a required
interim inspection during construction and the final inspection, and must confirm that the
work was completed according to the mitigation specifications.
new text end
new text begin
(d) Grant money must be released on behalf of an approved applicant only after a fortified
designation certificate has been issued for the home. The program or another designated
entity must, on behalf of the homeowner, directly pay the eligible contractor that performed
the mitigation work. The program or the program's designated entity must pay the eligible
contractor the costs covered by the grant. The homeowner must pay the eligible contractor
for the remaining cost after receiving an IBHS fortified certificate.
new text end
new text begin
(e) The program must confirm that the homeowner's insurer provides the appropriate
premium discount.
new text end
new text begin
(f) The program must conduct random reinspections to detect any fraud and must submit
any irregularities to the attorney general.
new text end
new text begin
(a) This section does not create an entitlement for property
owners or obligate the state of Minnesota to pay for residential property in Minnesota to be
inspected or retrofitted. The program under this section is subject to legislative appropriations,
the receipt of federal grants or money, or the receipt of other sources of grants or money.
The department may obtain grants or other money from the federal government or other
funding sources to support and enhance program activities.
new text end
new text begin
(b) All mitigation under this section is contingent upon securing all required local permits
and applicable inspections to comply with local building codes and applicable Fortified
program standards. A mitigation project receiving a grant under this section is subject to
random reinspection at a later date.
new text end
new text begin
An insurer writing homeowner's insurance
for property is prohibited from (1) refusing to issue or renew an insurance policy or contract,
or (2) canceling an insurance policy or contract based solely on the fact that the homeowner
harbors or owns one dog of a specific breed or mixture of breeds.
new text end
new text begin
(a) Subdivision 1 does not prohibit an insurer from (1) refusing to
issue or renew an insurance policy or contract, (2) canceling an insurance policy or contract,
or (3) imposing a reasonably increased premium or rate for an insurance policy or contract
based on a dog meeting the criteria of a dangerous dog or potentially dangerous dog under
section 347.50, or based on sound underwriting and actuarial principles that are reasonably
related to actual or anticipated loss experience.
new text end
new text begin
(b) Subdivision 1 does not prohibit an insurer from (1) refusing to issue or renew an
insurance policy or contract, (2) canceling an insurance policy or contract, or (3) imposing
a reasonably increased premium or rate for an insurance policy or contract if the dog has a
history of causing bodily injury or if the dog owner has a history of owning other animals
who caused bodily injury.
new text end
new text begin
This section is effective April 1, 2024, and applies to insurance
policies and contracts offered, issued, or sold after that date.
new text end
Minnesota Statutes 2022, section 65B.49, is amended by adding a subdivision to
read:
new text begin
(a) Unless expressly provided for in this chapter, a plan of
reparation security must conform to the six-year time limitation provided under section
541.05, subdivision 1, clause (1).
new text end
new text begin
(b) The time limitation for commencing a cause of action relating to underinsured motorist
coverage under subdivision 3a is four years from the date of accrual.
new text end
new text begin
This section is effective August 1, 2023, and applies to contracts
issued or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 151.071, subdivision 1, is amended to read:
When the board finds that a licensee,
registrant, or applicant has engaged in conduct prohibited under subdivision 2, it may do
one or more of the following:
(1) deny the issuance of a license or registration;
(2) refuse to renew a license or registration;
(3) revoke the license or registration;
(4) suspend the license or registration;
(5) impose limitations, conditions, or both on the license or registration, including but
not limited to: the limitation of practice to designated settings; the limitation of the scope
of practice within designated settings; the imposition of retraining or rehabilitation
requirements; the requirement of practice under supervision; the requirement of participation
in a diversion program such as that established pursuant to section 214.31 or the conditioning
of continued practice on demonstration of knowledge or skills by appropriate examination
or other review of skill and competence;
(6) impose a civil penalty not exceeding $10,000 for each separate violation,new text begin except that
a civil penalty not exceeding $25,000 may be imposed for each separate violation of section
62J.842,new text end the amount of the civil penalty to be fixed so as to deprive a licensee or registrant
of any economic advantage gained by reason of the violation, to discourage similar violations
by the licensee or registrant or any other licensee or registrant, or to reimburse the board
for the cost of the investigation and proceeding, including but not limited to, fees paid for
services provided by the Office of Administrative Hearings, legal and investigative services
provided by the Office of the Attorney General, court reporters, witnesses, reproduction of
records, board members' per diem compensation, board staff time, and travel costs and
expenses incurred by board staff and board members; and
(7) reprimand the licensee or registrant.
Minnesota Statutes 2022, section 151.071, subdivision 2, is amended to read:
The following conduct is prohibited and is
grounds for disciplinary action:
(1) failure to demonstrate the qualifications or satisfy the requirements for a license or
registration contained in this chapter or the rules of the board. The burden of proof is on
the applicant to demonstrate such qualifications or satisfaction of such requirements;
(2) obtaining a license by fraud or by misleading the board in any way during the
application process or obtaining a license by cheating, or attempting to subvert the licensing
examination process. Conduct that subverts or attempts to subvert the licensing examination
process includes, but is not limited to: (i) conduct that violates the security of the examination
materials, such as removing examination materials from the examination room or having
unauthorized possession of any portion of a future, current, or previously administered
licensing examination; (ii) conduct that violates the standard of test administration, such as
communicating with another examinee during administration of the examination, copying
another examinee's answers, permitting another examinee to copy one's answers, or
possessing unauthorized materials; or (iii) impersonating an examinee or permitting an
impersonator to take the examination on one's own behalf;
(3) for a pharmacist, pharmacy technician, pharmacist intern, applicant for a pharmacist
or pharmacy license, or applicant for a pharmacy technician or pharmacist intern registration,
conviction of a felony reasonably related to the practice of pharmacy. Conviction as used
in this subdivision includes a conviction of an offense that if committed in this state would
be deemed a felony without regard to its designation elsewhere, or a criminal proceeding
where a finding or verdict of guilt is made or returned but the adjudication of guilt is either
withheld or not entered thereon. The board may delay the issuance of a new license or
registration if the applicant has been charged with a felony until the matter has been
adjudicated;
(4) for a facility, other than a pharmacy, licensed or registered by the board, if an owner
or applicant is convicted of a felony reasonably related to the operation of the facility. The
board may delay the issuance of a new license or registration if the owner or applicant has
been charged with a felony until the matter has been adjudicated;
(5) for a controlled substance researcher, conviction of a felony reasonably related to
controlled substances or to the practice of the researcher's profession. The board may delay
the issuance of a registration if the applicant has been charged with a felony until the matter
has been adjudicated;
(6) disciplinary action taken by another state or by one of this state's health licensing
agencies:
(i) revocation, suspension, restriction, limitation, or other disciplinary action against a
license or registration in another state or jurisdiction, failure to report to the board that
charges or allegations regarding the person's license or registration have been brought in
another state or jurisdiction, or having been refused a license or registration by any other
state or jurisdiction. The board may delay the issuance of a new license or registration if an
investigation or disciplinary action is pending in another state or jurisdiction until the
investigation or action has been dismissed or otherwise resolved; and
(ii) revocation, suspension, restriction, limitation, or other disciplinary action against a
license or registration issued by another of this state's health licensing agencies, failure to
report to the board that charges regarding the person's license or registration have been
brought by another of this state's health licensing agencies, or having been refused a license
or registration by another of this state's health licensing agencies. The board may delay the
issuance of a new license or registration if a disciplinary action is pending before another
of this state's health licensing agencies until the action has been dismissed or otherwise
resolved;
(7) for a pharmacist, pharmacy, pharmacy technician, or pharmacist intern, violation of
any order of the board, of any of the provisions of this chapter or any rules of the board or
violation of any federal, state, or local law or rule reasonably pertaining to the practice of
pharmacy;
(8) for a facility, other than a pharmacy, licensed by the board, violations of any order
of the board, of any of the provisions of this chapter or the rules of the board or violation
of any federal, state, or local law relating to the operation of the facility;
(9) engaging in any unethical conduct; conduct likely to deceive, defraud, or harm the
public, or demonstrating a willful or careless disregard for the health, welfare, or safety of
a patient; or pharmacy practice that is professionally incompetent, in that it may create
unnecessary danger to any patient's life, health, or safety, in any of which cases, proof of
actual injury need not be established;
(10) aiding or abetting an unlicensed person in the practice of pharmacy, except that it
is not a violation of this clause for a pharmacist to supervise a properly registered pharmacy
technician or pharmacist intern if that person is performing duties allowed by this chapter
or the rules of the board;
(11) for an individual licensed or registered by the board, adjudication as mentally ill
or developmentally disabled, or as a chemically dependent person, a person dangerous to
the public, a sexually dangerous person, or a person who has a sexual psychopathic
personality, by a court of competent jurisdiction, within or without this state. Such
adjudication shall automatically suspend a license for the duration thereof unless the board
orders otherwise;
(12) for a pharmacist or pharmacy intern, engaging in unprofessional conduct as specified
in the board's rules. In the case of a pharmacy technician, engaging in conduct specified in
board rules that would be unprofessional if it were engaged in by a pharmacist or pharmacist
intern or performing duties specifically reserved for pharmacists under this chapter or the
rules of the board;
(13) for a pharmacy, operation of the pharmacy without a pharmacist present and on
duty except as allowed by a variance approved by the board;
(14) for a pharmacist, the inability to practice pharmacy with reasonable skill and safety
to patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type
of material or as a result of any mental or physical condition, including deterioration through
the aging process or loss of motor skills. In the case of registered pharmacy technicians,
pharmacist interns, or controlled substance researchers, the inability to carry out duties
allowed under this chapter or the rules of the board with reasonable skill and safety to
patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type
of material or as a result of any mental or physical condition, including deterioration through
the aging process or loss of motor skills;
(15) for a pharmacist, pharmacy, pharmacist intern, pharmacy technician, medical gas
dispenser, or controlled substance researcher, revealing a privileged communication from
or relating to a patient except when otherwise required or permitted by law;
(16) for a pharmacist or pharmacy, improper management of patient records, including
failure to maintain adequate patient records, to comply with a patient's request made pursuant
to sections 144.291 to 144.298, or to furnish a patient record or report required by law;
(17) fee splitting, including without limitation:
(i) paying, offering to pay, receiving, or agreeing to receive, a commission, rebate,
kickback, or other form of remuneration, directly or indirectly, for the referral of patients;
(ii) referring a patient to any health care provider as defined in sections 144.291 to
144.298 in which the licensee or registrant has a financial or economic interest as defined
in section 144.6521, subdivision 3, unless the licensee or registrant has disclosed the
licensee's or registrant's financial or economic interest in accordance with section 144.6521;
and
(iii) any arrangement through which a pharmacy, in which the prescribing practitioner
does not have a significant ownership interest, fills a prescription drug order and the
prescribing practitioner is involved in any manner, directly or indirectly, in setting the price
for the filled prescription that is charged to the patient, the patient's insurer or pharmacy
benefit manager, or other person paying for the prescription or, in the case of veterinary
patients, the price for the filled prescription that is charged to the client or other person
paying for the prescription, except that a veterinarian and a pharmacy may enter into such
an arrangement provided that the client or other person paying for the prescription is notified,
in writing and with each prescription dispensed, about the arrangement, unless such
arrangement involves pharmacy services provided for livestock, poultry, and agricultural
production systems, in which case client notification would not be required;
(18) engaging in abusive or fraudulent billing practices, including violations of the
federal Medicare and Medicaid laws or state medical assistance laws or rules;
(19) engaging in conduct with a patient that is sexual or may reasonably be interpreted
by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning
to a patient;
(20) failure to make reports as required by section 151.072 or to cooperate with an
investigation of the board as required by section 151.074;
(21) knowingly providing false or misleading information that is directly related to the
care of a patient unless done for an accepted therapeutic purpose such as the dispensing and
administration of a placebo;
(22) aiding suicide or aiding attempted suicide in violation of section 609.215 as
established by any of the following:
(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation
of section 609.215, subdivision 1 or 2;
(ii) a copy of the record of a judgment of contempt of court for violating an injunction
issued under section 609.215, subdivision 4;
(iii) a copy of the record of a judgment assessing damages under section 609.215,
subdivision 5; or
(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2.
The board must investigate any complaint of a violation of section 609.215, subdivision 1
or 2;
(23) for a pharmacist, practice of pharmacy under a lapsed or nonrenewed license. For
a pharmacist intern, pharmacy technician, or controlled substance researcher, performing
duties permitted to such individuals by this chapter or the rules of the board under a lapsed
or nonrenewed registration. For a facility required to be licensed under this chapter, operation
of the facility under a lapsed or nonrenewed license or registration; deleted text begin and
deleted text end
(24) for a pharmacist, pharmacist intern, or pharmacy technician, termination or discharge
from the health professionals services program for reasons other than the satisfactory
completion of the programdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(25) for a manufacturer, a violation of section 62J.842 or 62J.845.
new text end
Minnesota Statutes 2022, section 256B.0631, subdivision 1, is amended to read:
(a) Except as provided in subdivision 2, the medical
assistance benefit plan shall include the following cost-sharing for all recipientsdeleted text begin , effective
for services provided on or after September 1, 2011deleted text end :
(1) $3 per nonpreventive visit, except as provided in paragraph (b). For purposes of this
subdivision, a visit means an episode of service which is required because of a recipient's
symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting
by a physician or physician assistant, chiropractor, podiatrist, nurse midwife, advanced
practice nurse, audiologist, optician, or optometrist;
(2) $3.50 for nonemergency visits to a hospital-based emergency room, except that this
co-payment shall be increased to $20 upon federal approval;
(3) $3 per brand-name drug prescription, $1 per generic drug prescription, and $1 per
prescription for a brand-name multisource drug listed in preferred status on the preferred
drug list, subject to a $12 per month maximum for prescription drug co-payments. No
co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness;
(4) a family deductible equal to $2.75 per month per family and adjusted annually by
the percentage increase in the medical care component of the CPI-U for the period of
September to September of the preceding calendar year, rounded to the next higher five-cent
increment; deleted text begin and
deleted text end
(5) total monthly cost-sharing must not exceed five percent of family income. For
purposes of this paragraph, family income is the total earned and unearned income of the
individual and the individual's spouse, if the spouse is enrolled in medical assistance and
also subject to the five percent limit on cost-sharing. This paragraph does not apply to
premiums charged to individuals described under section 256B.057, subdivision 9deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(6) cost-sharing for prescription drugs and related medical supplies to treat chronic
disease must comply with the requirements of section 62Q.481.
new text end
(b) Recipients of medical assistance are responsible for all co-payments and deductibles
in this subdivision.
(c) Notwithstanding paragraph (b), the commissioner, through the contracting process
under sections 256B.69 and 256B.692, may allow managed care plans and county-based
purchasing plans to waive the family deductible under paragraph (a), clause (4). The value
of the family deductible shall not be included in the capitation payment to managed care
plans and county-based purchasing plans. Managed care plans and county-based purchasing
plans shall certify annually to the commissioner the dollar value of the family deductible.
(d) Notwithstanding paragraph (b), the commissioner may waive the collection of the
family deductible described under paragraph (a), clause (4), from individuals and allow
long-term care and waivered service providers to assume responsibility for payment.
(e) Notwithstanding paragraph (b), the commissioner, through the contracting process
under section 256B.0756 shall allow the pilot program in Hennepin County to waive
co-payments. The value of the co-payments shall not be included in the capitation payment
amount to the integrated health care delivery networks under the pilot program.
new text begin
This section is effective January 1, 2024.
new text end
Minnesota Statutes 2022, section 256B.69, subdivision 5a, is amended to read:
(a) Managed care contracts under this section and
section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner
may issue separate contracts with requirements specific to services to medical assistance
recipients age 65 and older.
(b) A prepaid health plan providing covered health services for eligible persons pursuant
to chapters 256B and 256L is responsible for complying with the terms of its contract with
the commissioner. Requirements applicable to managed care programs under chapters 256B
and 256L established after the effective date of a contract with the commissioner take effect
when the contract is next issued or renewed.
(c) The commissioner shall withhold five percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program pending completion of performance targets. Each
performance target must be quantifiable, objective, measurable, and reasonably attainable,
except in the case of a performance target based on a federal or state law or rule. Criteria
for assessment of each performance target must be outlined in writing prior to the contract
effective date. Clinical or utilization performance targets and their related criteria must
consider evidence-based research and reasonable interventions when available or applicable
to the populations served, and must be developed with input from external clinical experts
and stakeholders, including managed care plans, county-based purchasing plans, and
providers. The managed care or county-based purchasing plan must demonstrate, to the
commissioner's satisfaction, that the data submitted regarding attainment of the performance
target is accurate. The commissioner shall periodically change the administrative measures
used as performance targets in order to improve plan performance across a broader range
of administrative services. The performance targets must include measurement of plan
efforts to contain spending on health care services and administrative activities. The
commissioner may adopt plan-specific performance targets that take into account factors
affecting only one plan, including characteristics of the plan's enrollee population. The
withheld funds must be returned no sooner than July of the following year if performance
targets in the contract are achieved. The commissioner may exclude special demonstration
projects under subdivision 23.
(d) The commissioner shall require that managed care plans:
(1) use the assessment and authorization processes, forms, timelines, standards,
documentation, and data reporting requirements, protocols, billing processes, and policies
consistent with medical assistance fee-for-service or the Department of Human Services
contract requirements for all personal care assistance services under section 256B.0659 and
community first services and supports under section 256B.85; deleted text begin and
deleted text end
(2) by January 30 of each year that follows a rate increase for any aspect of services
under section 256B.0659 or 256B.85, inform the commissioner and the chairs and ranking
minority members of the legislative committees with jurisdiction over rates determined
under section 256B.851 of the amount of the rate increase that is paid to each personal care
assistance provider agency with which the plan has a contractdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(3) use a six-month timely filing standard and provide an exemption to the timely filing
timeliness for the resubmission of claims where there has been a denial, request for more
information, or system issue.
new text end
(e) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the health
plan's emergency department utilization rate for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. For 2012, the reduction shall be based on
the health plan's utilization in 2009. To earn the return of the withhold each subsequent
year, the managed care plan or county-based purchasing plan must achieve a qualifying
reduction of no less than ten percent of the plan's emergency department utilization rate for
medical assistance and MinnesotaCare enrollees, excluding enrollees in programs described
in subdivisions 23 and 28, compared to the previous measurement year until the final
performance target is reached. When measuring performance, the commissioner must
consider the difference in health risk in a managed care or county-based purchasing plan's
membership in the baseline year compared to the measurement year, and work with the
managed care or county-based purchasing plan to account for differences that they agree
are significant.
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate
was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.
The withhold described in this paragraph shall continue for each consecutive contract
period until the plan's emergency room utilization rate for state health care program enrollees
is reduced by 25 percent of the plan's emergency room utilization rate for medical assistance
and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate with the
health plans in meeting this performance target and shall accept payment withholds that
may be returned to the hospitals if the performance target is achieved.
(f) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rate for medical assistance and MinnesotaCare enrollees, as
determined by the commissioner. To earn the return of the withhold each year, the managed
care plan or county-based purchasing plan must achieve a qualifying reduction of no less
than five percent of the plan's hospital admission rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, compared to the previous calendar year until the final performance target is reached.
When measuring performance, the commissioner must consider the difference in health risk
in a managed care or county-based purchasing plan's membership in the baseline year
compared to the measurement year, and work with the managed care or county-based
purchasing plan to account for differences that they agree are significant.
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that this reduction in the hospitalization
rate was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.
The withhold described in this paragraph shall continue until there is a 25 percent
reduction in the hospital admission rate compared to the hospital admission rates in calendar
year 2011, as determined by the commissioner. The hospital admissions in this performance
target do not include the admissions applicable to the subsequent hospital admission
performance target under paragraph (g). Hospitals shall cooperate with the plans in meeting
this performance target and shall accept payment withholds that may be returned to the
hospitals if the performance target is achieved.
(g) Effective for services rendered on or after January 1, 2012, the commissioner shall
include as part of the performance targets described in paragraph (c) a reduction in the plan's
hospitalization admission rates for subsequent hospitalizations within 30 days of a previous
hospitalization of a patient regardless of the reason, for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. To earn the return of the withhold each year,
the managed care plan or county-based purchasing plan must achieve a qualifying reduction
of the subsequent hospitalization rate for medical assistance and MinnesotaCare enrollees,
excluding enrollees in programs described in subdivisions 23 and 28, of no less than five
percent compared to the previous calendar year until the final performance target is reached.
The withheld funds must be returned no sooner than July 1 and no later than July 31 of
the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a qualifying reduction in the
subsequent hospitalization rate was achieved. The commissioner shall structure the withhold
so that the commissioner returns a portion of the withheld funds in amounts commensurate
with achieved reductions in utilization less than the targeted amount.
The withhold described in this paragraph must continue for each consecutive contract
period until the plan's subsequent hospitalization rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and
28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar year
2011. Hospitals shall cooperate with the plans in meeting this performance target and shall
accept payment withholds that must be returned to the hospitals if the performance target
is achieved.
(h) Effective for services rendered on or after January 1, 2013, through December 31,
2013, the commissioner shall withhold 4.5 percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following year. The commissioner may exclude
special demonstration projects under subdivision 23.
(i) Effective for services rendered on or after January 1, 2014, the commissioner shall
withhold three percent of managed care plan payments under this section and county-based
purchasing plan payments under section 256B.692 for the prepaid medical assistance
program. The withheld funds must be returned no sooner than July 1 and no later than July
31 of the following year. The commissioner may exclude special demonstration projects
under subdivision 23.
(j) A managed care plan or a county-based purchasing plan under section 256B.692 may
include as admitted assets under section 62D.044 any amount withheld under this section
that is reasonably expected to be returned.
(k) Contracts between the commissioner and a prepaid health plan are exempt from the
set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and
7.
(l) The return of the withhold under paragraphs (h) and (i) is not subject to the
requirements of paragraph (c).
(m) Managed care plans and county-based purchasing plans shall maintain current and
fully executed agreements for all subcontractors, including bargaining groups, for
administrative services that are expensed to the state's public health care programs.
Subcontractor agreements determined to be material, as defined by the commissioner after
taking into account state contracting and relevant statutory requirements, must be in the
form of a written instrument or electronic document containing the elements of offer,
acceptance, consideration, payment terms, scope, duration of the contract, and how the
subcontractor services relate to state public health care programs. Upon request, the
commissioner shall have access to all subcontractor documentation under this paragraph.
Nothing in this paragraph shall allow release of information that is nonpublic data pursuant
to section 13.02.
Minnesota Statutes 2022, section 256L.03, subdivision 5, is amended to read:
(a) Co-payments, coinsurance, and deductibles do not apply to
children under the age of 21 and to American Indians as defined in Code of Federal
Regulations, title 42, section 600.5.
(b) The commissioner shall adjust co-payments, coinsurance, and deductibles for covered
services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent.
The cost-sharing changes described in this paragraph do not apply to eligible recipients or
services exempt from cost-sharing under state law. The cost-sharing changes described in
this paragraph shall not be implemented prior to January 1, 2016.
(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements
for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations,
title 42, sections 600.510 and 600.520.
new text begin
(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic
disease must comply with the requirements of section 62Q.481.
new text end
new text begin
This section is effective January 1, 2024.
new text end
new text begin
The commissioner of
commerce must amend Minnesota Rules, part 2770.6500, subpart 2, item B, subitem (5),
to require the commissioner's grant of self-insurance authority to an applicant to be based
on the applicant's net working capital in lieu of the applicant's net funds flow.
new text end
new text begin
The commissioner
of commerce must amend Minnesota Rules, part 2770.6500, subpart 2, item D, to,
notwithstanding any other provision of Minnesota Rules, part 2770.6500, permit the
commissioner to grant self-insurance authority to an applicant that is not a political
subdivision and that has not had positive net income or positive working capital in at least
three years of the last five-year period if the applicant's working capital, debt structure,
profitability, and overall financial integrity of the applicant and its parent company, if one
exists, demonstrate a continuing ability of the applicant to satisfy any financial obligations
that have been and might be incurred under the no-fault act.
new text end
new text begin
The commissioner of commerce must define working capital
for the purposes of Minnesota Rules, part 2770.6500.
new text end
new text begin
The
commissioner of commerce must amend Minnesota Rules, part 2770.7300, to permit, in
lieu of require, the commissioner to revoke a self-insurer's authorization to self-insure based
on the commissioner's determinations under Minnesota Rules, part 2770.7300, items A and
B.
new text end
new text begin
The commissioner of commerce may use
the expedited rulemaking process under Minnesota Statutes, section 14.389, to amend rules
under this section.
new text end
new text begin
This section is effective the day following final enactment.
new text end
new text begin
Beginning August 1, 2023, and annually
thereafter for the next five calendar years, the commissioner of commerce shall conduct an
evaluation of the economic cost and health benefits of one state-required benefit included
in Minnesota's EHB-benchmark plan, as defined in Code of Federal Regulations, title 45,
section 156.20. The mandated benefit to be studied each year must be chosen from a list
developed by the chairs of the house of representatives and senate commerce committees,
in consultation with the ranking minority members of the house of representatives and senate
commerce committees. The chairs and ranking minority members of the house of
representatives and senate commerce committees must agree upon and inform the
commissioner of at least one mandate to be reviewed for the period between August 1, 2023,
and August 1, 2024. The commissioner shall consult with the commissioner of health and
clinical and actuarial experts to assist in the evaluation and synthesis of available evidence.
The commissioner may obtain public input as part of the evaluation. At a minimum, the
evaluation must consider the following:
new text end
new text begin
(1) cost for services;
new text end
new text begin
(2) the share of Minnesotans' health insurance premiums that are tied to each current
mandated benefit;
new text end
new text begin
(3) utilization of services;
new text end
new text begin
(4) contribution to individual and public health;
new text end
new text begin
(5) extent to which the mandate conforms with existing standards of care in terms of
appropriateness or evidence-based medicine;
new text end
new text begin
(6) the historical context in which the mandate was enacted, including how the mandate
interacts with other required benefits; and
new text end
new text begin
(7) other relevant criteria of effectiveness and efficacy as determined by the commissioner
in consultation with the commissioner of health.
new text end
new text begin
The commissioner must submit a written report on the
evaluation to the chairs and ranking minority members of the legislative committees with
jurisdiction over health insurance policy and finance no later than 180 days after the
commissioner receives notification from a chair, as required under Minnesota Statutes,
section 62J.26, subdivision 3.
new text end
new text begin
Minnesota Statutes 2022, section 62A.31, subdivisions 1b and 1i,
new text end
new text begin
are repealed.
new text end
new text begin
This section is effective August 1, 2025, and applies to policies
offered, issued, or renewed on or after that date.
new text end
Minnesota Statutes 2022, section 46.131, subdivision 11, is amended to read:
(a) The financial institutions
account is created as a separate account in the special revenue fund. Earnings, including
interest, dividends, and any other earnings arising from account assets, must be credited to
the account.
(b) The account consists of funds received from assessments under subdivision 7,
examination fees under subdivision 8, and funds received pursuant to subdivision 10 and
the following provisions: sections 46.04; 46.041; 46.048, subdivision 1; 47.101; 47.54,
subdivision 1; 47.60, subdivision 3; 47.62, subdivision 4; 48.61, subdivision 7, paragraph
(b); 49.36, subdivision 1; 52.203; deleted text begin 53B.09; 53B.11, subdivision 1;deleted text end new text begin 53B.38; 53B.41; 53B.43;new text end
53C.02; 56.02; 58.10; 58A.045, subdivision 2; 59A.03; 216C.437, subdivision 12; 332A.04;
and 332B.04.
(c) Funds in the account are annually appropriated to the commissioner of commerce
for activities under this section.
Minnesota Statutes 2022, section 47.0153, subdivision 1, is amended to read:
When the officers of a financial institution are of
the opinion that an emergency exists, or is impending, which affects, or may affect, a
financial institution's offices, they shall have the authority, in the reasonable exercise of
their discretion, to determine not to open any of its offices on any business day or, if having
opened, to close an office during the continuation of the emergency, even if the commissioner
does not issue a proclamation of emergency. The office closed shall remain closed until the
time that the officers determine the emergency has ended, and for the further time reasonably
necessary to reopen. No financial institution office shall remain closed for more than 48
consecutive hoursnew text begin in a Monday through Friday periodnew text end , excluding other legal holidays,
without the prior approval of the commissioner.
Minnesota Statutes 2022, section 47.59, subdivision 2, is amended to read:
Extensions of credit or purchases of extensions of credit by
financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, deleted text begin 47.60,deleted text end 48.153,
48.185, 48.195, 59A.01 to 59A.15, 334.01, 334.011, 334.012, 334.022, 334.06, and 334.061
to 334.19 may, but need not, be made according to those sections in lieu of the authority
set forth in this section to the extent those sections authorize the financial institution to make
extensions of credit or purchase extensions of credit under those sections. If a financial
institution elects to make an extension of credit or to purchase an extension of credit under
those other sections, the extension of credit or the purchase of an extension of credit is
subject to those sections and not this section, except this subdivision, and except as expressly
provided in those sections. A financial institution may also charge an organization a rate of
interest and any charges agreed to by the organization and may calculate and collect finance
and other charges in any manner agreed to by that organization. Except for extensions of
credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.022,
334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made
according to this section or the sections listed in this subdivision. This subdivision does not
authorize a financial institution to extend credit or purchase an extension of credit under
any of the sections listed in this subdivision if the financial institution is not authorized to
do so under those sections. A financial institution extending credit under any of the sections
listed in this subdivision shall specify in the promissory note, contract, or other loan document
the section under which the extension of credit is made.
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.60, subdivision 1, is amended to read:
For purposes of this section, the terms defined have the
meanings given them:
(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower
for the borrower's own personal, family, or household purpose. A consumer small loan is
a short-term, unsecured loan to be repaid in a single installment. The cash advance of a
consumer small loan is equal to or less than $350. A consumer small loan includes an
indebtedness evidenced by but not limited to a promissory note or agreement to defer the
presentation of a personal check for a fee.
(b) "Consumer small loan lender" is a financial institution as defined in section 47.59
or a business entity registered with the commissioner and engaged in the business of making
consumer small loans.
new text begin
(c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly
rate, that relates the amount and timing of value received by the consumer to the amount
and timing of payments made. Annual percentage interest rate includes all interest, finance
charges, and fees. The annual percentage rate must be determined in accordance with either
the actuarial method or the United States Rule method.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.60, subdivision 2, is amended to read:
(a) In deleted text begin lieu of the interest,
finance charges, or fees in any other lawdeleted text end new text begin connection with a consumer small loannew text end , a consumer
small loan lender may charge deleted text begin the following:deleted text end new text begin an annual percentage rate of up to 50 percent.
No other charges or payments are permitted or may be received by the lender in connection
with a consumer small loan.
new text end
deleted text begin
(1) on any amount up to and including $50, a charge of $5.50 may be added;
deleted text end
deleted text begin
(2) on amounts in excess of $50, but not more than $100, a charge may be added equal
to ten percent of the loan proceeds plus a $5 administrative fee;
deleted text end
deleted text begin
(3) on amounts in excess of $100, but not more than $250, a charge may be added equal
to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;
deleted text end
deleted text begin
(4) for amounts in excess of $250 and not greater than the maximum in subdivision 1,
paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
minimum of $17.50 plus a $5 administrative fee.
deleted text end
(b) The term of a loan made under this section shall be for no more than 30 calendar
days.
(c) After maturity, the contract rate must not exceed 2.75 percent per month of the
remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
rate in the contract for each calendar day the balance is outstanding.
(d) No insurance charges or other charges must be permitted to be charged, collected,
or imposed on a consumer small loan except as authorized in this section.
(e) On a loan transaction in which cash is advanced in exchange for a personal check,
a return check charge may be charged as authorized by section 604.113, subdivision 2,
paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
(b), may not be demanded or assessed against the borrower.
(f) A loan made under this section must not be repaid by the proceeds of another loan
made under this section by the same lender or related interest. The proceeds from a loan
made under this section must not be applied to another loan from the same lender or related
interest. No loan to a single borrower made pursuant to this section shall be split or divided
and no single borrower shall have outstanding more than one loan with the result of collecting
a higher charge than permitted by this section or in an aggregate amount of principal exceed
at any one time the maximum of $350.
new text begin
(g) A loan made under this section with an annual percentage rate that exceeds 36 percent
must comply with section 47.603.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.60, is amended by adding a subdivision to
read:
new text begin
(a) A person must not engage in any device, subterfuge, or pretense
to evade the requirements of this section, including but not limited to:
new text end
new text begin
(1) making loans disguised as a personal property sale and leaseback transaction;
new text end
new text begin
(2) disguising loan proceeds as a cash rebate for the pretextual installment sale of goods
or services; or
new text end
new text begin
(3) making, offering, assisting, or arranging for a debtor to obtain a loan with a greater
rate or amount of interest, consideration, charge, or payment than is permitted by this section
through any method, including mail, telephone, Internet, or any electronic means, regardless
of whether a person has a physical location in Minnesota.
new text end
new text begin
(b) A person is a consumer small loan lender subject to the requirements of this section
notwithstanding the fact that a person purports to act as an agent or service provider, or acts
in another capacity for another person that is not subject to this section, if a person:
new text end
new text begin
(1) directly or indirectly holds, acquires, or maintains the predominant economic interest,
risk, or reward in a loan or lending business; or
new text end
new text begin
(2) both: (i) markets, solicits, brokers, arranges, or facilitates a loan; and (ii) holds or
holds the right, requirement, or first right of refusal to acquire loans, receivables, or other
direct or interest in a loan.
new text end
new text begin
(c) A person is a consumer small loan lender subject to the requirements of this section
if the totality of the circumstances indicate that a person is a lender and the transaction is
structured to evade the requirements of this section. Circumstances that weigh in favor of
a person being a lender in a transaction include but are not limited to instances where a
person:
new text end
new text begin
(1) indemnifies, insures, or protects a person not subject to this section from any costs
or risks related to a loan;
new text end
new text begin
(2) predominantly designs, controls, or operates lending activity;
new text end
new text begin
(3) holds the trademark or intellectual property rights in the brand, underwriting system,
or other core aspects of a lending business; or
new text end
new text begin
(4) purports to act as an agent or service provider, or acts in another capacity, for a person
not subject to this section while acting directly as a lender in one or more states.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.601, subdivision 1, is amended to read:
(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
new text begin
(b) "Annual percentage rate" has the meaning given in section 47.60, subdivision 1.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end "Borrower" means an individual who obtains a consumer short-term loan primarily
for personal, family, or household purposes.
deleted text begin (c)deleted text end new text begin (d)new text end "Commissioner" means the commissioner of commerce.
deleted text begin (d)deleted text end new text begin (e)new text end "Consumer short-term loan" means a loan to a borrower which has a principal
amount, or an advance on a credit limit, of deleted text begin $1,000deleted text end new text begin $1,300new text end or less and requires a minimum
payment within 60 days of loan origination or credit advance of more than 25 percent of
the principal balance or credit advance. For the purposes of this section, each new advance
of money to a borrower under a consumer short-term loan agreement constitutes a new
consumer short-term loan. A "consumer short-term loan" does not include any transaction
made under chapter 325J or a loan made by a consumer short-term lender where, in the
event of default on the loan, the sole recourse for recovery of the amount owed, other than
a lawsuit for damages for the debt, is to proceed against physical goods pledged by the
borrower as collateral for the loan.
deleted text begin (e)deleted text end new text begin (f)new text end "Consumer short-term lender" means an individual or entity engaged in the business
of making or arranging consumer short-term loans, other than a state or federally chartered
bank, savings bank, or credit union.new text begin For the purposes of this paragraph, arranging consumer
short-term loans includes but is not limited to any substantial involvement in facilitating,
marketing, lead-generating, underwriting, servicing, or collecting consumer short-term
loans.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.601, subdivision 2, is amended to read:
(a) No contract or agreement between
a consumer short-term loan lender and a borrower residing in Minnesota may contain the
following:
(1) a provision selecting a law other than Minnesota law under which the contract is
construed or enforced;
(2) a provision choosing a forum for dispute resolution other than the state of Minnesota;
or
(3) a provision limiting class actions against a consumer short-term lender for violations
of subdivision 3 or for making consumer short-term loans:
(i) without a required license issued by the commissioner; or
(ii) in which interest rates, fees, charges, or loan amounts exceed those allowable under
section deleted text begin 47.59, subdivision 6, ordeleted text end 47.60, subdivision 2deleted text begin , other than by de minimis amounts if
no pattern or practice existsdeleted text end .
(b) Any provision prohibited by paragraph (a) is void and unenforceable.
(c) A consumer short-term loan lender must furnish a copy of the written loan contract
to each borrower. The contract and disclosures must be written in the language in which
the loan was negotiated with the borrower and must contain:
(1) the name; address, which may not be a post office box; and telephone number of the
lender making the consumer short-term loan;
(2) the name and title of the individual employee or representative who signs the contract
on behalf of the lender;
(3) an itemization of the fees and interest charges to be paid by the borrower;
(4) in bold, 24-point type, the annual percentage rate as computed under United States
Code, chapter 15, section 1606; and
(5) a description of the borrower's payment obligations under the loan.
(d) The holder or assignee of a check or other instrument evidencing an obligation of a
borrower in connection with a consumer short-term loan takes the instrument subject to all
claims by and defenses of the borrower against the consumer short-term lender.
new text begin
(e) In connection with a consumer short-term loan, a consumer short-term loan lender
may charge an annual percentage rate of up to 50 percent. No other charges or payments
are permitted or may be received by the lender in connection with a consumer short-term
loan.
new text end
new text begin
(f) A loan made under this section with an annual percentage rate that exceeds 36 percent
must comply with section 47.603.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.601, is amended by adding a subdivision to
read:
new text begin
(a) A person must not engage in any device, subterfuge, or pretense
to evade the requirements of this section, including but not limited to:
new text end
new text begin
(1) making loans disguised as a personal property sale and leaseback transaction;
new text end
new text begin
(2) disguising loan proceeds as a cash rebate for the pretextual installment sale of goods
or services; or
new text end
new text begin
(3) making, offering, assisting, or arranging for a debtor to obtain a loan with a greater
rate or amount of interest, consideration, charge, or payment than is permitted by this section
through any method, including mail, telephone, Internet, or any electronic means, regardless
of whether a person has a physical location in Minnesota.
new text end
new text begin
(b) A person is a consumer short-term loan lender subject to the requirements of this
section notwithstanding the fact that a person purports to act as an agent or service provider,
or acts in another capacity for another person that is not subject to this section, if a person:
new text end
new text begin
(1) directly or indirectly holds, acquires, or maintains the predominant economic interest,
risk, or reward in a loan or lending business; or
new text end
new text begin
(2) both: (i) markets, solicits, brokers, arranges, or facilitates a loan; and (ii) holds or
holds the right, requirement, or first right of refusal to acquire loans, receivables, or other
direct or interest in a loan.
new text end
new text begin
(c) A person is a consumer short-term loan lender subject to the requirements of this
section if the totality of the circumstances indicate that a person is a lender and the transaction
is structured to evade the requirements of this section. Circumstances that weigh in favor
of a person being a lender in a transaction include but are not limited to instances where a
person:
new text end
new text begin
(1) indemnifies, insures, or protects a person not subject to this section from any costs
or risks related to a loan;
new text end
new text begin
(2) predominantly designs, controls, or operates lending activity;
new text end
new text begin
(3) holds the trademark or intellectual property rights in the brand, underwriting system,
or other core aspects of a lending business; or
new text end
new text begin
(4) purports to act as an agent or service provider, or acts in another capacity, for a person
not subject to this section while acting directly as a lender in one or more states.
new text end
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
Minnesota Statutes 2022, section 47.601, subdivision 6, is amended to read:
(a) Except for a "bona fide
error" as set forth under United States Code, chapter 15, section 1640, subsection (c), an
individual or entity who violates subdivision 2 deleted text begin ordeleted text end new text begin ,new text end 3new text begin , or 5anew text end is liable to the borrower for:
(1) all money collected or received in connection with the loan;
(2) actual, incidental, and consequential damages;
(3) statutory damages of up to $1,000 per violation;
(4) costs, disbursements, and reasonable attorney fees; and
(5) injunctive relief.
(b) In addition to the remedies provided in paragraph (a), a loan is void, and the borrower
is not obligated to pay any amounts owing if the loan is made:
(1) by a consumer short-term lender who has not obtained an applicable license from
the commissioner;
(2) in violation of any provision of subdivision 2 or 3; or
(3) in which interest, fees, charges, or loan amounts exceed the interest, fees, charges,
or loan amounts allowable under deleted text begin sections 47.59, subdivision 6, anddeleted text end new text begin sectionnew text end 47.60, subdivision
2.
new text begin
This section is effective January 1, 2024, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
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) "Annual percentage rate" has the meaning given in section 47.60, subdivision 1.
new text end
new text begin
(c) "Basic living expenses" means expenditures, other than payments for major financial
obligations, that a borrower makes for goods and services that are necessary to maintain:
(1) the borrower's health, welfare, and ability to produce income; and (2) the health and
welfare of the members of the borrower's household who are financially dependent on the
borrower.
new text end
new text begin
(d) "Borrower" means an individual who seeks to obtain a payday loan or a payday
advance.
new text end
new text begin
(e) "Consumer credit report" means a consumer report, as defined in section 603(d) of
the Fair Credit Reporting Act, United States Code, title 15, section 1681a(d), obtained from
a consumer reporting agency that compiles and maintains files on consumers on a nationwide
basis, as defined in section 603(p) of the Fair Credit Reporting Act, United States Code,
title 15, section 1681a(p).
new text end
new text begin
(f) "Debt-to-income ratio" means the ratio, expressed as a percentage, comparing (1)
the sum of the debt amounts that the lender projects will be payable by the borrower,
including major financial obligations, outstanding loans other than the payday loan, the
payday loan payment, all other debt obligations, and basic living expenses, to (2) the net
income that the lender projects the borrower will receive during the loan period.
new text end
new text begin
(g) "Major financial obligations" means the sum of:
new text end
new text begin
(1) a borrower's housing expense;
new text end
new text begin
(2) outstanding loans, including any other payday loans or payday advances; and
new text end
new text begin
(3) all other debt obligations, including without limitation child support and alimony
obligations.
new text end
new text begin
(h) "Net income" means the total amount of income received by the borrower during
the loan period, as demonstrated by documentation evidencing proof of income.
new text end
new text begin
(i) "Payday lender" means a consumer small lender under section 47.60 or consumer
short-term lender under section 47.601.
new text end
new text begin
(j) "Payday loan" means a consumer small loan under section 47.60 or a consumer
short-term loan under section 47.601.
new text end
new text begin
(k) "Payday advance" means a consumer small loan under section 47.60 or a consumer
short-term loan under section 47.601 that is offered under a line of credit.
new text end
new text begin
(l) "Payday loan payment" means the total payment due for the payday loan at the end
of the payday loan period. Payday loan payment includes all principal, interest, charges,
and fees.
new text end
new text begin
This section applies to all payday loans with an annual percentage
rate that exceeds 36 percent.
new text end
new text begin
A payday lender must not make a
payday loan or permit a borrower to obtain a payday advance unless the lender first
determines, based on an analysis that complies with subdivision 5, that the borrower has
the ability to make the payday loan payment when the payday loan payment comes due at
the end of the loan period. For purposes of this subdivision, each payday advance constitutes
a new loan and requires a new ability to repay determination.
new text end
new text begin
(a) To
conduct an ability to repay analysis, a payday lender must first obtain commercially
reasonable documented evidence of the borrower's net income, major financial obligations,
and basic living expenses. To the extent documentation is not available for any of the
borrower's basic living expenses, the lender may reasonably rely on a written, signed
statement by the borrower indicating the specific basic living expenses.
new text end
new text begin
(b) If the payday lender obtains a borrower's consumer credit report, there is a
presumption that a payday lender has obtained commercially reasonable documented
evidence of:
new text end
new text begin
(1) outstanding loans other than the payday loan or payday advance; and
new text end
new text begin
(2) all other debt obligations, without limitation, except for child support and alimony
obligations.
new text end
new text begin
(c) For a borrower's required payments under child support or alimony obligations, the
lender must obtain a consumer credit report. If the report does not include a child support
or spousal maintenance obligation, as applicable, the lender may reasonably rely on a written,
signed statement by the borrower indicating the child support payment or spousal
maintenance payments, as applicable.
new text end
new text begin
(a) A payday lender's
determination of a borrower's ability to repay a payday loan or payday advance must be
based on the calculation of the borrower's debt-to-income ratio for the loan period.
new text end
new text begin
(b) A payday lender's ability to repay determination is reasonable if, based on the
calculated debt-to-income ratio for the loan period, the borrower can make payments for
all major financial obligations, make all payments under the loan, and meet basic living
expenses during the period ending 30 days after repayment of the loan.
new text end
new text begin
A payday lender that fails to comply with this section is subject to:
(1) the penalties and enforcement under section 47.601, subdivisions 6 and 7; and (2)
revocation of a filing or license, as provided under section 47.60, subdivision 3, or section
45.027, subdivision 7.
new text end
new text begin
This section is effective January 1, 2024, and
applies to payday loans and payday advances originated on or after that date.
new text end
new text begin
By July 30 each year, a banking institution with more
than $1,000,000,000 in assets must submit a completed climate risk disclosure survey to
the commissioner. The commissioner must provide the form used to submit a climate risk
disclosure survey.
new text end
new text begin
Data submitted to the commissioner under this section are public, except
that trade secret information is nonpublic under section 13.37.
new text end
new text begin
By July 30 each year, a credit union with more than
$1,000,000,000 in assets must submit a completed climate risk disclosure survey to the
commissioner. The commissioner must provide the form used to submit a climate risk
disclosure survey.
new text end
new text begin
Data submitted to the commissioner under this section are public, except
that trade secret information is nonpublic under section 13.37.
new text end
Minnesota Statutes 2022, section 53.04, subdivision 3a, is amended to read:
(a) The right to make loans, secured or unsecured, at the rates and on
the terms and other conditions permitted under chapters 47 and 334. Loans made under this
authority must be in amounts in compliance with section 53.05, clause (7). A licensee making
a loan under this chapter secured by a lien on real estate shall comply with the requirements
of section 47.20, subdivision 8.new text begin A licensee making a loan that is a consumer small loan, as
defined in section 47.60, subdivision 1, paragraph (a), must comply with section 47.60. A
licensee making a loan that is a consumer short-term loan, as defined in section 47.601,
subdivision 1, paragraph (d), must comply with section 47.601.
new text end
(b) Loans made under this subdivision may be secured by real or personal property, or
both. If the proceeds of a loan secured by a first lien on the borrower's primary residence
are used to finance the purchase of the borrower's primary residence, the loan must comply
with the provisions of section 47.20.
(c) An agency or instrumentality of the United States government or a corporation
otherwise created by an act of the United States Congress or a lender approved or certified
by the secretary of housing and urban development, or approved or certified by the
administrator of veterans affairs, or approved or certified by the administrator of the Farmers
Home Administration, or approved or certified by the Federal Home Loan Mortgage
Corporation, or approved or certified by the Federal National Mortgage Association, that
engages in the business of purchasing or taking assignments of mortgage loans and undertakes
direct collection of payments from or enforcement of rights against borrowers arising from
mortgage loans, is not required to obtain a certificate of authorization under this chapter in
order to purchase or take assignments of mortgage loans from persons holding a certificate
of authorization under this chapter.
(d) This subdivision does not authorize an industrial loan and thrift company to make
loans under an overdraft checking plan.
new text begin
This section is effective August 1, 2023, and
applies to consumer small loans and consumer short-term loans originated on or after that
date.
new text end
new text begin
For the purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end
new text begin
"Acting in concert" means persons knowingly acting together
with a common goal of jointly acquiring control of a licensee, whether or not pursuant to
an express agreement.
new text end
new text begin
"Authorized delegate" means a person a licensee
designates to engage in money transmission on behalf of the licensee.
new text end
new text begin
"Average daily money
transmission liability" means the amount of the licensee's outstanding money transmission
obligations in Minnesota at the end of each day in a given period of time, added together,
and divided by the total number of days in the given period of time. For purposes of
calculating average daily money transmission liability under this chapter for any licensee
required to do so, the given period of time shall be the quarters ending March 31, June 30,
September 30, and December 31.
new text end
new text begin
"Bank Secrecy Act" means the Bank Secrecy Act under
United States Code, title 31, section 5311, et seq., and the Bank Secrecy Act's implementing
regulations, as amended and recodified from time to time.
new text end
new text begin
"Closed loop stored value" means stored value that
is redeemable by the issuer only for a good or service provided by the issuer, the issuer's
affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the
extent required by applicable law to be redeemable in cash for the good or service's cash
value.
new text end
new text begin
"Control" means:
new text end
new text begin
(1) the power to vote, directly or indirectly, at least 25 percent of the outstanding voting
shares or voting interests of a licensee or person in control of a licensee;
new text end
new text begin
(2) the power to elect or appoint a majority of key individuals or executive officers,
managers, directors, trustees, or other persons exercising managerial authority of a person
in control of a licensee; or
new text end
new text begin
(3) the power to exercise, directly or indirectly, a controlling influence over the
management or policies of a licensee or person in control of a licensee.
new text end
new text begin
"Eligible rating" means a credit rating of any of the three highest
rating categories provided by an eligible rating service, whereby each category may include
rating category modifiers such as "plus" or "minus" or the equivalent for any other eligible
rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or
higher or the equivalent from any other eligible rating service. Short-term credit ratings are
deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent
from any other eligible rating service. In the event that ratings differ among eligible rating
services, the highest rating shall apply when determining whether a security bears an eligible
rating.
new text end
new text begin
"Eligible rating service" means any Nationally
Recognized Statistical Rating Organization (NRSRO), as defined by the United States
Securities and Exchange Commission and any other organization designated by the
commissioner by rule or order.
new text end
new text begin
"Federally insured
depository financial institution" means a bank, credit union, savings and loan association,
trust company, savings association, savings bank, industrial bank, or industrial loan company
organized under the laws of the United States or any state of the United States, when the
bank, credit union, savings and loan association, trust company, savings association, savings
bank, industrial bank, or industrial loan company has federally insured deposits.
new text end
new text begin
"In Minnesota" means at a physical location within the state
of Minnesota for a transaction requested in person. For a transaction requested electronically
or by telephone, the provider of money transmission may determine if the person requesting
the transaction is in Minnesota by relying on other information provided by the person
regarding the location of the individual's residential address or a business entity's principal
place of business or other physical address location, and any records associated with the
person that the provider of money transmission may have that indicate the location, including
but not limited to an address associated with an account.
new text end
new text begin
"Individual" means a natural person.
new text end
new text begin
"Key individual" means any individual ultimately responsible
for establishing or directing policies and procedures of the licensee, including but not limited
to as an executive officer, manager, director, or trustee.
new text end
new text begin
"Licensee" means a person licensed under this chapter.
new text end
new text begin
"Material litigation" means litigation that, according to
United States generally accepted accounting principles, is significant to a person's financial
health and would be required to be disclosed in the person's annual audited financial
statements, report to shareholders, or similar records.
new text end
new text begin
"Money" means a medium of exchange that is authorized or adopted
by the United States or a foreign government. Money includes a monetary unit of account
established by an intergovernmental organization or by agreement between two or more
governments.
new text end
new text begin
"Monetary value" means a medium of exchange, whether
or not redeemable in money.
new text end
new text begin
(a) "Money transmission" means:
new text end
new text begin
(1) selling or issuing payment instruments to a person located in this state;
new text end
new text begin
(2) selling or issuing stored value to a person located in this state; or
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(3) receiving money for transmission from a person located in this state.
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(b) Money includes payroll processing services. Money does not include the provision
solely of online or telecommunications services or network access.
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"Money
services businesses accredited state" or "MSB accredited state" means a state agency that
is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators
Association for money transmission licensing and supervision.
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"Multistate licensing process" means any
agreement entered into by and among state regulators relating to coordinated processing of
applications for money transmission licenses, applications for the acquisition of control of
a licensee, control determinations, or notice and information requirements for a change of
key individuals.
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"NMLS" means the Nationwide Multistate Licensing System and
Registry developed by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators and owned and operated by the State
Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and
registration of persons in financial services industries.
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(a) "Outstanding money
transmission obligations" must be established and extinguished in accordance with applicable
state law and means:
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(1) any payment instrument or stored value issued or sold by the licensee to a person
located in the United States or reported as sold by an authorized delegate of the licensee to
a person that is located in the United States that has not yet been paid or refunded by or for
the licensee, or escheated in accordance with applicable abandoned property laws; or
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(2) any money received for transmission by the licensee or an authorized delegate in the
United States from a person located in the United States that has not been received by the
payee or refunded to the sender, or escheated in accordance with applicable abandoned
property laws.
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(b) For purposes of this subdivision, "in the United States" includes, to the extent
applicable, a person in any state, territory, or possession of the United States; the District
of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is
located in a foreign country.
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"Passive investor" means a person that:
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(1) does not have the power to elect a majority of key individuals or executive officers,
managers, directors, trustees, or other persons exercising managerial authority of a person
in control of a licensee;
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(2) is not employed by and does not have any managerial duties of the licensee or person
in control of a licensee;
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(3) does not have the power to exercise, directly or indirectly, a controlling influence
over the management or policies of a licensee or person in control of a licensee; and
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(4) attests to clauses (1), (2), and (3), in a form and in a medium prescribed by the
commissioner, or commits to the passivity characteristics under clauses (1), (2), and (3) in
a written document.
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(a) "Payment instrument" means a written or electronic
check, draft, money order, traveler's check, or other written or electronic instrument for the
transmission or payment of money or monetary value, whether or not negotiable.
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(b) Payment instrument does not include stored value or any instrument that is: (1)
redeemable by the issuer only for goods or services provided by the issuer, the issuer's
affiliate, the issuer's franchisees, or an affiliate of the issuer's franchisees, except to the
extent required by applicable law to be redeemable in cash for its cash value; or (2) not sold
to the public but issued and distributed as part of a loyalty, rewards, or promotional program.
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"Payroll processing services" means receiving
money for transmission pursuant to a contract with a person to deliver wages or salaries,
make payment of payroll taxes to state and federal agencies, make payments relating to
employee benefit plans, or make distributions of other authorized deductions from wages
or salaries. The term payroll processing services does not include an employer performing
payroll processing services on the employer's own behalf or on behalf of the employer's
affiliate, or a professional employment organization subject to regulation under other
applicable state law.
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"Person" means any individual, general partnership, limited partnership,
limited liability company, corporation, trust, association, joint stock corporation, or other
corporate entity identified by the commissioner.
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"Receiving money for transmission" or "money received for transmission"
means receiving money or monetary value in the United States for transmission within or
outside the United States by electronic or other means.
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(a) "Stored value" means monetary value representing a claim
against the issuer evidenced by an electronic or digital record, and that is intended and
accepted for use as a means of redemption for money or monetary value, or payment for
goods or services. Stored value includes but is not limited to prepaid access, as defined
under Code of Federal Regulations, title 31, part 1010.100, as amended or recodified from
time to time.
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(b) Notwithstanding this subdivision, stored value does not include: (1) a payment
instrument or closed loop stored value; or (2) stored value not sold to the public but issued
and distributed as part of a loyalty, rewards, or promotional program.
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"Tangible net worth" means the aggregate assets of a
licensee excluding all intangible assets, less liabilities, as determined in accordance with
United States generally accepted accounting principles.
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This chapter does not apply to:
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(1) an operator of a payment system, to the extent the operator of a payment system
provides processing, clearing, or settlement services between or among persons exempted
by this section or licensees in connection with wire transfers, credit card transactions, debit
card transactions, stored-value transactions, automated clearing house transfers, or similar
funds transfers;
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(2) a person appointed as an agent of a payee to collect and process a payment from a
payor to the payee for goods or services, other than money transmission itself, provided to
the payor by the payee, provided that:
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(i) there exists a written agreement between the payee and the agent directing the agent
to collect and process payments from payors on the payee's behalf;
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(ii) the payee holds the agent out to the public as accepting payments for goods or services
on the payee's behalf; and
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(iii) payment for the goods and services is treated as received by the payee upon receipt
by the agent so that the payor's obligation is extinguished and there is no risk of loss to the
payor if the agent fails to remit the funds to the payee;
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(3) a person that acts as an intermediary by processing payments between an entity that
has directly incurred an outstanding money transmission obligation to a sender, and the
sender's designated recipient, provided that the entity:
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(i) is properly licensed or exempt from licensing requirements under this chapter;
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(ii) provides a receipt, electronic record, or other written confirmation to the sender
identifying the entity as the provider of money transmission in the transaction; and
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(iii) bears sole responsibility to satisfy the outstanding money transmission obligation
to the sender, including the obligation to make the sender whole in connection with any
failure to transmit the funds to the sender's designated recipient;
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(4) the United States; a department, agency, or instrumentality of the United States; or
an agent of the United States;
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(5) money transmission by the United States Postal Service or by an agent of the United
States Postal Service;
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(6) a state; county; city; any other governmental agency, governmental subdivision, or
instrumentality of a state; or the state's agent;
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(7) a federally insured depository financial institution; bank holding company; office of
an international banking corporation; foreign bank that establishes a federal branch pursuant
to the International Bank Act, United States Code, title 12, section 3102, as amended or
recodified from time to time; corporation organized pursuant to the Bank Service Corporation
Act, United States Code, title 12, sections 1861 to 1867, as amended or recodified from
time to time; or corporation organized under the Edge Act, United States Code, title 12,
sections 611 to 633, as amended or recodified from time to time;
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(8) electronic funds transfer of governmental benefits for a federal, state, county, or
governmental agency by a contractor on behalf of the United States or a department, agency,
or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or
instrumentality thereof;
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(9) a board of trade designated as a contract market under the federal Commodity
Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from
time to time; or a person that in the ordinary course of business provides clearance and
settlement services for a board of trade to the extent of its operation as or for a board;
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(10) a registered futures commission merchant under the federal commodities laws, to
the extent of the registered futures commission merchant's operation as a merchant;
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(11) a person registered as a securities broker-dealer under federal or state securities
laws, to the extent of the person's operation as a securities broker-dealer;
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(12) an individual employed by a licensee, authorized delegate, or any person exempted
from the licensing requirements under this chapter when acting within the scope of
employment and under the supervision of the licensee, authorized delegate, or exempted
person as an employee and not as an independent contractor;
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