1.1 	A bill for an act
1.2 	relating to insurance; regulating sales of insurance coverage to governmental 
1.3 	entities;amending Minnesota Statutes 2012, section 60K.46, by adding a 
1.4 	subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 60K.46, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 9.Sales of insurance to governmental entities. An insurance broker who 
1.9 	provides insurance coverage to governmental entities must not:
1.10 	(1) receive and retain an overriding commission in connection with the sale. For 
1.11 	purposes of this subdivision, an overriding commission is a portion of the proceeds of a 
1.12 	sale of insurance that is earned by an agent of the broker, rather than by the broker, but 
1.13 	which the broker retains as income for the broker;
1.14 	(2) fail to disclose all compensation to the broker or agents from any potential sale 
1.15 	of insurance to the governmental entity; or
1.16 	(3) fail to initiate and maintain a fiduciary responsibility to the governmental entity.

1.17 	EFFECTIVE DATE. This section is effective July 1, 2014.