Commerce policy bill.

A bill for an act

relating to commerce; adding and modifying various provisions governing consumer

protection, financial institutions, securities, insurance, unclaimed property, weights

and measures, and lawful gambling; modifying the Minnesota premium security

plan; eliminating the prescription drug affordability advisory council; making

various technical changes; requiring reports; amending Minnesota Statutes 2024,

sections 46.044, subdivision 1; 47.20, subdivision 1; 47.59, subdivision 1; 47.60,

subdivision 1; 48.195; 49.37; 53.04, subdivision 3a; 53B.74; 53C.09, subdivision

4; 56.002; 56.01; 56.05; 58.06, subdivision 2; 58.14, subdivisions 3, 4, 5, by adding

a subdivision; 58.18, subdivision 4; 58B.02, by adding subdivisions; 58B.03,

subdivisions 10, 11; 58B.051; 58B.06, subdivisions 4, 6; 60A.085; 60A.13,

subdivisions 1, 6; 60K.383; 62A.135, subdivision 1; 62A.46, subdivision 2; 62D.08,

by adding a subdivision; 62E.23, subdivision 1; 62J.40; 62J.89, subdivisions 1, 2;

62J.90, subdivision 2; 62K.07, subdivision 2; 62M.09, subdivision 3; 62Q.47;

62U.04, subdivision 13; 62W.06, by adding a subdivision; 72A.061, subdivision

5; 72A.13, subdivision 1; 72A.18, subdivision 2, by adding subdivisions; 72A.20,

subdivision 2, by adding a subdivision; 80A.50; 80C.12, subdivision 1; 80G.01,

subdivision 5a; 239.761, subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 239.77,

subdivision 1; 256B.0913, subdivision 4; 270B.14, subdivision 11; 296A.01,

subdivisions 7, 8, 14, 19, 22, 26, 28, 35; 325E.21, subdivisions 1b, 2c; 332.32;

332.52, subdivision 3; 332A.04, subdivision 1; 332B.04, subdivision 1; 345.31,

by adding a subdivision; 345.43, by adding a subdivision; 349.211, subdivision

2b; 609.761, subdivision 3; Minnesota Statutes 2025 Supplement, sections 8.37,

subdivisions 3, 5; 41A.09, subdivision 2a; 58B.02, subdivision 8a; 62E.23,

subdivisions 1a, 2; 80A.66; 239.761, subdivisions 3, 4, 5, 6; 296A.01, subdivisions

20, 23, 24; 297I.20, subdivision 7, as amended; Laws 2026, chapter 72, section 1,

subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 58;

60A; 62A; 62D; 80A; 82B; 82C; 345; proposing coding for new law as Minnesota

Statutes, chapters 59E; 65C; repealing Minnesota Statutes 2024, sections 48.158;

56.08; 62J.86, subdivision 2; 62J.88; 332A.02, subdivision 2; 332B.02, subdivision

2.

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

ARTICLE 1

CONSUMER PROTECTION, FINANCIAL PRODUCTS, AND INSURANCE

Section 1.

Minnesota Statutes 2025 Supplement, section 8.37, subdivision 3, is amended

to read:

Subd. 3.

Money deposited in the account.

deleted text begin
50
deleted text end
new text begin
Fifty
new text end
percent of all money recovered by

the attorney general in a consumer enforcement action that is payable to the state and not

designated as consumer enforcement public compensation or for another specific purpose

up to the first
deleted text begin
$5,000,000
deleted text end
new text begin
$10,000,000
new text end
each fiscal year must be deposited into the account.

The remaining 50 percent of money recovered by the attorney general in a consumer

enforcement action that is payable to the state and not designated as consumer enforcement

public compensation or for another specific purpose must be deposited into the general

fund. For purposes of this subdivision, the amount of money recovered in a consumer

enforcement action that must be deposited into the fund is determined at the time when the

money otherwise would have been deposited into the general fund.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 8.37, subdivision 5, is amended to

read:

Subd. 5.

Distributions to eligible consumers.

(a) Money in the account may be

distributed to any eligible consumer with an identified amount of unpaid consumer

enforcement public compensation.
deleted text begin
If the amount of money in the account is insufficient to

pay all distributions to eligible consumers with an identified amount of unpaid consumer

enforcement public compensation, the
deleted text end
Money must be distributed first to consumers eligible

for unpaid consumer enforcement public compensation based on a consumer enforcement

action with a final order of the oldest date.

deleted text begin

(b) If the attorney general projects that there will be insufficient funding to pay all eligible

consumers from the funds available on an ongoing basis, the attorney general may

recommend to the legislature that the legislature prescribe a formula for prorating or capping

payments to eligible consumers so that more eligible consumers will receive payment from

the fund.

deleted text end

new text begin

(b) If money is distributed to an eligible consumer, the distribution is limited to:

new text end

new text begin

(1) the full identified amount of unpaid consumer enforcement public compensation, up

to $50,000; and

new text end

new text begin

(2) 50 percent of the identified amount of unpaid consumer enforcement public

compensation over $50,000, or $50,000, whichever is less.

new text end

Sec. 3.

Minnesota Statutes 2024, section 47.20, subdivision 1, is amended to read:

Subdivision 1.

General authority.

Pursuant to rules the commissioner of commerce

finds to be necessary and proper, if any, banks, savings banks, and savings associations

organized under the laws of this state or the United States, trust companies, trust companies

acting as fiduciaries, and other banking institutions subject to the supervision of the

commissioner of commerce,
new text begin
including residential mortgage originators and servicers under

chapter 58,
new text end
and mortgagees or lenders 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 any

successor, or approved or certified by the Federal Home Loan Mortgage Corporation, or

approved or certified by the Federal National Mortgage Association, are authorized:

(1) to make loans and advances of credit and purchases of obligations representing loans

and advances of credit which are insured or guaranteed by the secretary of housing and

urban development pursuant to the National Housing Act, as amended, or the administrator

of veterans affairs pursuant to the Servicemen's Readjustment Act of 1944, as amended, or

the administrator of the Farmers Home Administration or any successor pursuant to the

Consolidated Farm and Rural Development Act, Public Law 87-128, as amended, and to

obtain the insurance or guarantees;

(2) to make loans secured by mortgages on real property and loans secured by a share

or shares of stock or a membership certificate or certificates issued to a stockholder or

member by a cooperative apartment corporation which the secretary of housing and urban

development, the administrator of veterans affairs, or the administrator of the Farmers Home

Administration or any successor has insured or guaranteed or made a commitment to insure

or guarantee, and to obtain the insurance or guarantees;

(3) to make, purchase, or participate in such loans and advances of credit; including

reverse mortgage loans, notwithstanding anything in subdivision 4b, sections
47.58
and

334.01
, and chapter 56
new text begin
or 58
new text end
to the contrary; as would be eligible for purchase, in whole or

in part, by the Federal National Mortgage Association or the Federal Home Loan Mortgage

Corporation, but without regard to any limitation placed upon the maximum principal amount

of an eligible loan;
new text begin
and
new text end

(4) to make, purchase or participate in such loans and advances of credit secured by

mortgages on real property which are authorized or allowed by the Office of Thrift

Supervision or the Office of the Comptroller of the Currency, or any successor to these

federal agencies.

Sec. 4.

Minnesota Statutes 2024, section 47.59, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following definitions shall

apply.

(a) "Actuarial method" has the meaning given the term in Code of Federal Regulations,

title 12, part 226, and appendix J thereto.

(b) "Annual percentage rate" has the meaning given the term in Code of Federal

Regulations, title 12, part 226, but using the definition of "finance charge" used in this

section.

(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale

contract.

(d) "Business purpose" means a purpose other than a personal, family, household, or

agricultural purpose.

(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with

the financial institution to pay obligations arising from the issuance to or use of the card by

another person.

(f) "Consumer loan" means a loan made by a financial institution in which:

(1) the debtor is a person other than an organization;

(2) the debt is incurred primarily for a personal, family, or household purpose; and

(3) the debt is payable in installments or a finance charge is made.

(g) "Credit" means the right granted by a financial institution to a borrower to defer

payment of a debt, to incur debt and defer its payment, or to purchase property or services

and defer payment.

(h) "Credit card" means a card or device issued under an arrangement pursuant to which

a financial institution gives to a cardholder the privilege of obtaining credit from the financial

institution or other person in purchasing or leasing property or services, obtaining loans, or

otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according

to the terms of the arrangement by transmitting information contained on the card or device

orally, in writing, by mechanical or electronic methods, or in any other manner. A transaction

is not "pursuant to a credit card" if the card or device is used solely in that transaction to:

(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is

not obtained according to the terms of the arrangement;

(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not

the payment results in a credit extension to the cardholder by the financial institution; or

(3) effect an immediate transfer of funds from the cardholder's deposit account by

electronic or other means, whether or not the transfer results in a credit extension to the

cardholder by the financial institution.

(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means

a sale of goods or services, or an interest in land, in which:

(1) credit is granted by a seller who regularly engages as a seller in credit transactions

of the same kind; and

(2) the debt is payable in installments or a finance charge is made.

(j) "Finance charge" has the meaning given in Code of Federal Regulations, title 12, part

226, except that the following will not in any event be considered a finance charge:

(1) a charge as a result of default or delinquency under subdivision 6 if made for actual

unanticipated late payment, delinquency, default, or other similar occurrence, and a charge

made for an extension or deferment under subdivision 5, unless the parties agree that these

charges are finance charges;

(2) an additional charge under subdivision 6;

(3) a discount, if a financial institution purchases a loan at less than the face amount of

the obligation or purchases or satisfies obligations of a cardholder pursuant to a credit card

and the purchase or satisfaction is made at less than the face amount of the obligation;

(4) fees paid by a borrower to a broker, provided the financial institution or a person

described in subdivision 4 does not require use of the broker to obtain credit; or

(5) a commission, expense reimbursement, or other sum received by a financial institution

or a person described in subdivision 4 in connection with insurance described in subdivision

6.

(k) "Financial institution" means a state or federally chartered bank, a state or federally

chartered bank and trust, a trust company with banking powers, a state or federally chartered

saving bank, a state or federally chartered savings association, an industrial loan and thrift

company organized under chapter 53,
new text begin
a sales finance company organized under chapter

53C,
new text end
a regulated lender organized under chapter 56,
new text begin
a mortgage originator or servicer

licensed under chapter 58,
new text end
or an operating subsidiary of any such institution.

(l) "Loan" means:

(1) the creation of debt by the financial institution's payment of money to the borrower

or a third person for the account of the borrower;

(2) the creation of debt pursuant to a credit card in any manner, including a cash advance

or the financial institution's honoring a draft or similar order for the payment of money

drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or

purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's

assignee;

(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of

credit arrangement;

(4) the creation of debt by a credit to an account with the financial institution upon which

the borrower is entitled to draw immediately;

(5) the forbearance of debt arising from a loan; and

(6) the creation of debt pursuant to open-end credit.

"Loan" does not include the forbearance of debt arising from a sale or lease, a credit

sale contract, or an overdraft from a person's deposit account with a financial institution

which is not pursuant to a written agreement to pay overdrafts with the right to defer

repayment thereof.

(m) "Official fees" means:

(1) fees and charges which actually are or will be paid to public officials for determining

the existence of or for perfecting, releasing, terminating, or satisfying a security interest or

mortgage relating to a loan or credit sale, and any separate fees or charges which actually

are or will be paid to public officials for recording a notice described in section
580.032,

subdivision 1
; and

(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage

otherwise required by a financial institution in connection with a loan or credit sale, if the

premium does not exceed the fees and charges described in clause (1), which would otherwise

be payable.

(n) "Organization" means a corporation, government, government subdivision or agency,

trust, estate, partnership, joint venture, cooperative, limited liability company, limited

liability partnership, or association.

(o) "Person" means a natural person or an organization.

(p) "Principal" means the total of:

(1) the amount paid to, received by, or paid or repayable for the account of, the borrower;

and

(2) to the extent that payment is deferred:

(i) the amount actually paid or to be paid by the financial institution for additional charges

permitted under this section; and

(ii) prepaid finance charges.

Sec. 5.

Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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
new text begin

or arranging
new text end
consumer small loans.
new text begin
For purposes of this paragraph, arranging a consumer

small loan includes but is not limited to any substantial involvement to facilitate, market,

generate leads for, underwrite, or collect a consumer small loan.
new text end

(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 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.

Sec. 6.

Minnesota Statutes 2024, section 53.04, subdivision 3a, is amended to read:

Subd. 3a.

Loans.

(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
. 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
deleted text begin
(d)
deleted text end
new text begin
(e)
new text end
, must comply with section
47.601
.

(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.

Sec. 7.

Minnesota Statutes 2024, section 53B.74, is amended to read:

53B.74 VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL

REQUIREMENTS.

(a) A licensee engaged in virtual currency business activities
deleted text begin
may include virtual currency

in the licensee's calculation of tangible net worth, by measuring the average value of the

virtual currency in United States dollar equivalent over the prior six months, excluding

control of virtual currency for a person entitled to the protections under section
53B.73
.
deleted text end
new text begin
is

not required to subtract virtual currency from total assets in the licensee's calculation of

tangible net worth if:
new text end

new text begin

(1) the licensee's day-to-day business includes incurring obligations to customers

denominated in the virtual currency;

new text end

new text begin

(2) the virtual currency asset has a corresponding liability denominated in the virtual

currency;

new text end

new text begin

(3) the virtual currency is unencumbered; and

new text end

new text begin

(4) the virtual currency assets that are not subtracted from total assets are limited to the

virtual currency assets that have a corresponding liability denominated in the same virtual

currency.

new text end

(b) A licensee must maintain, for all virtual-currency business activity with or on behalf

of a person five years after the date of the activity, a record of:

(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's

account in Minnesota, including:

(i) the identity of the person;

(ii) the form of the transaction;

(iii) the amount, date, and payment instructions given by the person; and

(iv) the account number, name, and United States Postal Service address of the person,

and, to the extent feasible, other parties to the transaction;

(2) the aggregate number of transactions and aggregate value of transactions by the

licensee with or on behalf of the person and for the licensee's account in this state, expressed

in the United States dollar equivalent of the virtual currency for the previous 12 calendar

months;

(3) each transaction in which the licensee exchanges one form of virtual currency for

money or another form of virtual currency with or on behalf of the person;

(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities,

capital, income, and expenses;

(5) each business-call report the licensee is required to create or provide to the department

or NMLS;

(6) bank statements and bank reconciliation records for the licensee and the name,

account number, and United States Postal Service address of each bank the licensee uses

to conduct virtual-currency business activity with or on behalf of the person;

(7) a report of any dispute with the person; and

(8) a report of any virtual-currency business activity transaction with or on behalf of a

person which the licensee was unable to complete.

(c) A licensee must maintain records required by paragraph (b) in a form that enables

the commissioner to determine whether the licensee is in compliance with this chapter, any

court order, and law of Minnesota other than this chapter.

Sec. 8.

Minnesota Statutes 2024, section 53C.09, subdivision 4, is amended to read:

Subd. 4.

Other law may apply.

In lieu of this section and sections
53C.01, subdivisions

2, 4, and 13
;
53C.08
;
53C.10
; and
53C.11
, a retail seller
new text begin
or sales finance company
new text end
may

proceed under section
47.59

deleted text begin
relating to credit sales made by a third party
deleted text end
new text begin
, subdivisions 4,

4a, and 6
new text end
. In cases where the retail seller
new text begin
or sales finance company
new text end
proceeds under section

47.59
, the remaining provisions of sections
53C.01
to
53C.14
apply notwithstanding section

47.59
.

Sec. 9.

Minnesota Statutes 2024, section 56.002, is amended to read:

56.002 APPLICATION.

This chapter does not apply to a person doing business under and as permitted by any

law of this state or of the United States relating to banks, savings associations, trust

companies, licensed pawnbrokers,
new text begin
a residential mortgage originator or servicer licensed

under chapter 58 that offers residential mortgage origination services or residential mortgage

servicing,
new text end
or credit unions. Notwithstanding the provisions of section
56.01
, an industrial

loan and thrift company under chapter 53 may contract for and receive the charges, including

those in section
56.155
, authorized by this chapter without being licensed pursuant to this

chapter, but shall comply with all other provisions of this chapter when contracting for or

receiving charges on loans regulated by this chapter.

Sec. 10.

Minnesota Statutes 2024, section 56.01, is amended to read:

56.01 NECESSITY OF LICENSE.

(a) Except as authorized by this chapter and without first obtaining a license from the

commissioner, no person shall engage in the business of making loans of money, credit,

goods, or things in action, in an amount or of a value not exceeding that specified in section

56.131, subdivision 1
, and charge, contract for, or receive on the loan a greater rate of

interest, discount, or consideration than the lender would be permitted by law to charge if

not a licensee under this chapter.
new text begin
A person must obtain a license from the commissioner

under this chapter before arranging a consumer short-term loan under section 47.601.
new text end

(b) 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 be licensed under this chapter in order to purchase or take

assignments of mortgage loans from licensees under this chapter.

Sec. 11.

Minnesota Statutes 2024, section 56.05, is amended to read:

56.05 LICENSE; TO BE POSTED.

new text begin

(a)
new text end
The license shall state the address at which the business is to be conducted and shall

state fully the name of the licensee, and if the licensee is a copartnership or association, the

names of the members thereof, and if a corporation, the date and place of its incorporation.

new text begin

(b)
new text end
The license shall be kept conspicuously posted in the place of business of the licensee,

and shall not be transferable or assignable.
new text begin
For a licensee that offers service via the Internet,

the license number must be clearly displayed on each web page or other document required

by an order issued by the commissioner.
new text end

Sec. 12.

Minnesota Statutes 2024, section 58.06, subdivision 2, is amended to read:

Subd. 2.

Application contents.

(a) The application must contain the name and complete

business address or addresses of the license applicant. The license applicant must be a

partnership, limited liability partnership, association, limited liability company, corporation,

or other form of business organization, and the application must contain the names and

complete business addresses of each partner, member, director, and principal officer. The

application must also include a description of the activities of the license applicant, in the

detail and for the periods the commissioner may require.

(b)
deleted text begin
A residential mortgage originator
deleted text end
new text begin
An
new text end
applicant must submit a surety bond that meets

the requirements of section
58.08, subdivision 1a
.

(c) The application must also include all of the following:

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section
58.125
;

(ii) will advise the commissioner of any material changes to the information submitted

in the most recent application within ten days of the change;

(iii) will advise the commissioner in writing immediately of any bankruptcy petitions

filed against or by the applicant or licensee;

(iv) will maintain at all times a surety bond in the amount of at least
deleted text begin
$100,000
deleted text end
new text begin
$125,000
new text end
;

(v) complies with federal and state tax laws; and

(vi) complies with sections
345.31
to
345.60
, the Minnesota unclaimed property law;

(2) information as to the mortgage lending, servicing, or brokering experience of the

applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in

control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons in

control of the applicant have engaged in conduct evidencing gross negligence, fraud,

misrepresentation, or deceit in performing an act for which a license is required under this

chapter;

(5) whether the applicant or persons in control of the applicant have been the subject of:

an order of suspension or revocation, cease and desist order, or injunctive order, or order

barring involvement in an industry or profession issued by this or another state or federal

regulatory agency or by the Secretary of Housing and Urban Development within the ten-year

period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 13.

new text begin

[58.131] RESIDENTIAL MORTGAGE LOAN SERVICING STANDARDS.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

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

the meanings given.

new text end

new text begin

(b) "Authorized representative" means a person, including but not limited to an attorney,

employee, or agent of a government agency, not-for-profit housing counseling organization,

or legal services organization, designated by a borrower in a written authorization signed

by the borrower or in any other form of verifiable authorization to share information and

communicate with a servicer on behalf of the borrower.

new text end

new text begin

(c) "Clearly and conspicuously" means the statement, representation, or term being

disclosed is displayed in a size, color, and contrast and is presented in a manner that makes

the statement readily noticed and understood by an ordinary consumer.

new text end

new text begin

(d) "Government-sponsored enterprise" means the Federal National Mortgage Association

and the Federal Home Loan Mortgage Corporation.

new text end

new text begin

(e) "Real Estate Settlement Procedures Act" or "RESPA" means the Real Estate

Settlement Procedures Act of 1974, United States Code, title 12, section 2601, et seq., and

regulations adopted pursuant to RESPA, also known as Regulation X, Code of Federal

Regulations, title 12, part 1024, as amended.

new text end

new text begin

(f) "Third-party provider" means any person or entity retained by or on behalf of the

servicer, including but not limited to foreclosure firms, law firms, foreclosure trustees, other

agents, independent contractors, subsidiaries, and affiliates, that provides insurance,

foreclosure, bankruptcy, mortgage servicing including loss mitigation, or other products or

services in connection with servicing a mortgage loan.

new text end

new text begin

(g) "Transferee servicer" means a servicer that has agreed to obtain the right to service

a mortgage loan pursuant to an agreement or understanding.

new text end

new text begin

(h) "Transferor servicer" means a servicer that has agreed to, or been informed that the

servicer must, transfer the right to service a mortgage loan to another servicer.

new text end

new text begin

Subd. 2.

new text end

new text begin

General requirements.

new text end

new text begin

(a) A violation of an applicable state law or

administrative rule, a federal law or regulation, or a state or federal program is a violation

of this section.

new text end

new text begin

(b) In addition to complying with this section, a servicer must comply with:

new text end

new text begin

(1) other applicable sections of this chapter;

new text end

new text begin

(2) other applicable state law, including but not limited to chapters 46A, 47, 580, 581,

and 582;

new text end

new text begin

(3) applicable sections of RESPA;

new text end

new text begin

(4) the federal Servicemembers Civil Relief Act, United States Code, title 50, section

501, et seq.; and

new text end

new text begin

(5) other applicable federal laws and implementing regulations, as amended, including

but not limited to:

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new text begin

(i) the Gramm-Leach-Bliley Act, Public Law 106-102;

new text end

new text begin

(ii) the Truth-in-Lending Act, United States Code, title 15, section 1601, et seq.; and

new text end

new text begin

(iii) the Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x.

new text end

new text begin

Subd. 3.

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Servicing and ownership transfers or sales.

new text end

new text begin

(a) When acquiring servicing

rights from a transferor servicer, a transferee servicer must continue processing loan

modification requests and honoring trial and permanent modifications.

new text end

new text begin

(b) When transferring or selling loan servicing with pending modification requests or

trial or permanent modifications, a transferor servicer must:

new text end

new text begin

(1) inform the transferee servicer if a loan modification is pending; and

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(2) obligate the transferee servicer to (i) accept and continue processing loan modification

requests, and (ii) honor trial and permanent loan modification agreements.

new text end

new text begin

Subd. 4.

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new text begin

Payment processing and fees.

new text end

new text begin

(a) A servicer must comply with section 47.59,

subdivision 9a, regarding prompt crediting of payments, if the borrower has provided

sufficient information to credit the account. A servicer must apply the payment as specified

in the loan documents.

new text end

new text begin

(b) A servicer may enter into a written contract with the borrower that allows the servicer

to hold certain types of money, or money sent by a certain method, for a period of time until

the money is available before crediting the money to the borrower's account.

new text end

new text begin

(c) A servicer must notify the borrower if a payment is received, not credited, and placed

in a suspense account. The servicer must send the notification to the borrower within ten

business days by United States mail to the borrower's last known address. The notification

must identify (1) the reason the payment was not credited or treated as credited to the

account, and (2) any actions the borrower must take to make the residential mortgage loan

current. If a servicer provides monthly or more frequent statements that include the

information under this paragraph, the servicer is not required to provide the information in

an additional notice. If this paragraph conflicts with the requirements of an applicable

bankruptcy court order, compliance with the bankruptcy court requirements constitutes

compliance with this paragraph or paragraph (d).

new text end

new text begin

(d) When a suspense account contains enough money to make a full payment, a servicer

must apply the payment to the mortgage on the date the full amount became available in

the suspense account.

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new text begin

(e) A servicer must assess an incurred fee to a borrower's account within 60 days of the

date the fee was incurred. A servicer must clearly and conspicuously explain the fee in a

statement mailed to the borrower at the borrower's last known address no more than 30 days

after the date the fee is assessed. If a servicer provides monthly or more frequent statements

that include the information under this paragraph, the servicer is not required to provide the

information in an additional notice.

new text end

new text begin

Subd. 5.

new text end

new text begin

Contracting with third-party providers.

new text end

new text begin

A servicer must adopt written policies

and procedures governing the oversight of third-party providers, including but not limited

to foreclosure trustees, foreclosure firms, subservicers, agents, subsidiaries, and affiliates.

A servicer must maintain the policies and procedures as part of the servicer's books and

records and must provide the policies and procedures to the commissioner upon request.

new text end

new text begin

Subd. 6.

new text end

new text begin

Maintenance of the escrow account.

new text end

new text begin

(a) If a servicer collects escrow amounts

held for the borrower to pay insurance, taxes, or other charges with respect to the property,

the servicer must collect and make all payments from the escrow account. To the extent the

servicer has control, the servicer must ensure that no late penalties are assessed or other

negative consequences result for the borrower.

new text end

new text begin

(b) At least annually or upon the borrower's request, a servicer must inform the borrower

in writing regarding the amount of reserve required in an escrow account. The notice must

advise the borrower of any fees the borrower incurs (1) for not maintaining the reserve

amount, or (2) if the servicer advances escrow amounts on the borrower's behalf and

subsequently collects the escrow amounts from the borrower.

new text end

new text begin

(c) A servicer may enter into a written agreement with the borrower that specifies the

servicer is not required to make escrow payments unless money is available in the escrow

account. An agreement under this paragraph must include language that provides notice to

the borrower that the borrower is responsible to pay the escrow amounts if an amount

sufficient to pay the escrow amounts is not maintained in the escrow account.

new text end

new text begin

(d) A servicer must notify the borrower within ten business days of the date a change is

made to the escrow account that modifies the borrower's escrow payment amount. A change

requiring notification includes but is not limited to hazard insurance premiums, a reduction

in the required reserve amount for the account, or a change in the property's tax assessment.

A change resulting from a borrower's regularly scheduled payment is not a change requiring

notification.

new text end

new text begin

Subd. 7.

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Borrower requests for information.

new text end

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(a) A servicer must make a reasonable

attempt to comply with a borrower's request for information, including a request for

information about loss mitigation, regarding the residential mortgage loan account and must

respond to a dispute initiated by the borrower about the loan account. A reasonable attempt

under this subdivision includes but is not limited to:

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(1) maintaining written or electronic records of each written request for information

involving the borrower's account until the residential mortgage loan is paid in full, sold, or

otherwise satisfied; and

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new text begin

(2) providing a written statement to the borrower within 30 business days of the date a

written request is received from the borrower or by following the response timelines provided

by a loss mitigation program. A borrower's request must include the borrower's name and

account number, if any, a statement that the account is or may be in error, and sufficient

detail regarding the information sought by the borrower to permit the servicer to comply.

new text end

new text begin

(b) At a minimum, a servicer must provide the following information in response to a

borrower request received under this subdivision:

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new text begin

(1) whether the account is current or, if the account is not current, an explanation

regarding the default and the date the account entered default;

new text end

new text begin

(2) the current balance due on the residential mortgage loan, including the principal due;

the amount of money, if any, held in a suspense account; the amount of the escrow balance

known to the servicer, if any; and whether any escrow deficiencies or shortages are known

to the servicer;

new text end

new text begin

(3) the identity, address, and other relevant information about the current holder, owner,

or assignee of the residential mortgage loan; and

new text end

new text begin

(4) the telephone number and mailing address of an individual servicer representative

with the information and authority to answer questions and resolve disputes.

new text end

new text begin

(c) A servicer must promptly correct errors and refund fees assessed to the borrower

resulting from an error the servicer made.

new text end

new text begin

(d) If the content of a servicer's response meets the requirements under RESPA for a

response to a qualified written request, the servicer has complied with this subdivision. A

servicer deemed compliant with this subdivision under this paragraph must separately

comply with paragraph (c).

new text end

new text begin

(e) In addition to the statement described under paragraph (a), clause (2), a borrower

may request more detailed information from a servicer. A servicer that receives a request

under this paragraph must provide the information to the borrower within 30 business days

of the date a written request from the borrower is received. A borrower's request must

include the borrower's name and account number, if any, a statement that the account is or

may be in error, and sufficient detail to the servicer regarding information sought by the

borrower. If requested by the borrower, a statement provided under this paragraph must

also include:

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new text begin

(1) a copy of the original note or, if the original note is unavailable, an affidavit of lost

note that includes all endorsements; and

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new text begin

(2) a statement that (i) identifies and itemizes all fees and charges assessed under the

loan servicing transaction, (ii) provides a full payment history that identifies in a clear and

conspicuous manner all the debits, credits, applications, and disbursements of all payments

received from or for the benefit of the borrower, and (iii) identifies other activity on the

residential mortgage loan, including escrow account activity and suspense account activity,

if any.

new text end

new text begin

(f) For purposes of a borrower request made under paragraph (e) the account history

period must cover, at a minimum, the two-year period before the date the request for

information is received. If the servicer has not serviced the residential mortgage loan for

the entire two-year period, the servicer must provide the information back to the date on

which the servicer began servicing the residential mortgage loan and must identify the

previous servicer, if known. If a servicer claims delinquent or outstanding sums are owed

on the residential mortgage loan prior to the two-year period or the period during which the

servicer has serviced the residential mortgage loan, the servicer must provide an account

history beginning with the month that the servicer claims any outstanding sums are owed

on the residential mortgage loan up to the date the request for the information is received.

new text end

new text begin

(g) If the borrower requests a statement under paragraph (e), a servicer must provide the

statement free of charge. A borrower is entitled to only one free statement annually under

this paragraph. If a borrower requests more than one statement annually, a servicer may

charge $30 for the second and each subsequent statement.

new text end

new text begin

Subd. 8.

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new text begin

Borrower complaints and inquiries.

new text end

new text begin

(a) A servicer must establish and maintain:

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new text begin

(1) procedures and systems to respond to and resolve borrower complaints and inquiries

in a manner that complies with this section;

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new text begin

(2) a customer service department staffed by trained personnel to whom a borrower may

direct complaints and inquiries; and

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new text begin

(3) a toll-free telephone number or collect calling service that enables a borrower to

speak, during regular business hours, with a live person trained to answer inquiries and

instruct borrowers how to file written complaints.

new text end

new text begin

(b) Each welcome packet, periodic statement, including as applicable either the monthly

mortgage statement or annual coupon book that is provided to a borrower, and website

maintained by a servicer must clearly and conspicuously state:

new text end

new text begin

(1) an address to which borrowers may direct complaints and inquiries;

new text end

new text begin

(2) the toll-free telephone number or collect calling services provided by the servicer;

new text end

new text begin

(3) whether the servicer is licensed with the commissioner; and

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new text begin

(4) that a borrower may file a complaint and obtain information about the servicer by

contacting the Department of Commerce. The information provided under this clause must

include the department's current telephone contact information and website.

new text end

new text begin

(c) A servicer must establish and maintain a process that enables borrowers to escalate

complaints or pending loss mitigation matters for a supervisory-level review.

new text end

new text begin

Subd. 9.

new text end

new text begin

Servicing prohibitions; fair dealing duty.

new text end

new text begin

(a) In addition to the prohibitions

and standards of conduct under sections 58.12, subdivision 1, paragraph (b), and 58.13,

subdivision 1, a servicer is prohibited from:

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new text begin

(1) engaging in unfair, deceptive, or abusive business practices, or misrepresenting or

omitting any material information, in connection with servicing a mortgage loan, including

but not limited to misrepresenting the amount, nature, or terms of a fee, payment due, or

payment claimed due on the loan, the servicing agreement's terms and conditions, or the

borrower's obligations under the loan;

new text end

new text begin

(2) requiring money to be remitted by a method that is more costly to the borrower than

a bank, certified check, or attorney's check from an attorney's account; or

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new text begin

(3) refusing to communicate with the borrower's authorized representative if the

authorized representative provides the servicer with a written authorization, including by

electronic transmission, signed by the borrower that affirms the authorized representative

may act on behalf of the borrower. A servicer may adopt procedures, excluding collecting

the representative's Social Security number, that are reasonably related to verifying that the

representative is in fact authorized to act on behalf of the borrower.

new text end

new text begin

(b) A servicer must act in good faith and deal fairly in the servicer's dealings with a

borrower in connection with servicing a borrower's mortgage loan. For purposes of this

paragraph, acting in good faith and dealing fairly includes but is not limited to the duty to:

new text end

new text begin

(1) safeguard and account for any payment made by the borrower or any money belonging

to the borrower;

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new text begin

(2) follow reasonable and lawful instructions from the borrower that are consistent with

the underlying note and mortgage;

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new text begin

(3) act with reasonable skill, care, and diligence;

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new text begin

(4) consider alternatives to foreclosure when a borrower (i) demonstrates that the borrower

is in imminent risk of delinquency on the mortgage loan as a result of a financial hardship,

or (ii) has experienced a financial hardship and is unable to maintain the payment at the

current payment amount required under the mortgage loan or make delinquent payments;

and

new text end

new text begin

(5) structure loan modifications to result in payments that are reasonably affordable and

sustainable for the borrower at the time the modification is made.

new text end

new text begin

Subd. 10.

new text end

new text begin

Notices; mailings; evidence of receipt.

new text end

new text begin

(a) A notification, mailing, or other

correspondence from a mortgage servicer or third-party provider to a borrower must be

provided via first-class mail or email if the borrower has provided an email address for

notice or communication purposes.

new text end

new text begin

(b) A servicer must provide a mailing address, facsimile number, email address, and a

method to facilitate file transfers via the Internet to produce documents requested from the

borrower. An option to transfer files via the Internet must allow both the borrower and

servicer to view the documents sent and confirm the date the documents were sent for 60

months after the date the documents were produced to the servicer.

new text end

new text begin

(c) A servicer must provide a detailed description of all items received and the items'

expiration dates from a borrower within ten business days of the date an item was received

via any medium described under this subdivision.

new text end

new text begin

(d) A servicer is prohibited from rejecting documentation from a borrower or potential

borrower as incomplete without providing the borrower with details regarding which specific

portion of the documentation is incomplete.

new text end

Sec. 14.

Minnesota Statutes 2024, section 58.14, subdivision 3, is amended to read:

Subd. 3.

Documentation and resolution of complaints.

A licensee or exempt person

must investigate and attempt to resolve complaints made regarding acts or practices subject

to the provisions of this chapter.
new text begin
A servicer must comply with section 58.131, subdivisions

6 and 7.
new text end
If a complaint is received in writing, the licensee or exempt person must maintain

a file containing all materials relating to the complaint and subsequent investigation for a

period of 60 months.

Sec. 15.

Minnesota Statutes 2024, section 58.14, subdivision 4, is amended to read:

Subd. 4.

Trust account records for mortgage originators.

A residential mortgage

originator
new text begin
or servicer
new text end
shall keep and maintain for 60 months a record of all trust funds,

sufficient to identify the transaction, date and source of receipt, and date and identification

of disbursement.

Sec. 16.

Minnesota Statutes 2024, section 58.14, subdivision 5, is amended to read:

Subd. 5.

Record retention.

A licensee or exempt person must keep and maintain for 60

months the business records, including
new text begin
email communications, telephone recordings,

incomplete documentation, and
new text end
advertisements, regarding residential mortgage loans applied

for, originated, or serviced in the course of its business.

Sec. 17.

Minnesota Statutes 2024, section 58.14, is amended by adding a subdivision to

read:

new text begin

Subd. 6.

new text end

new text begin

Telephone recordings.

new text end

new text begin

A person acting as a residential mortgage loan servicer

that services at least 500 residential mortgage loans secured by property in Minnesota must:

new text end

new text begin

(1) record a telephone conversation with a borrower and a borrower's representatives;

and

new text end

new text begin

(2) maintain the recording of the conversation for 60 months after the date the recording

is made, as provided under subdivision 5.

new text end

Sec. 18.

Minnesota Statutes 2024, section 58.18, subdivision 4, is amended to read:

Subd. 4.

Exemption.

This section does not apply to a residential mortgage loan originated

by a federal or state chartered bank, savings bank, or credit union
new text begin
, unless the residential

mortgage loan originated by a federal or state chartered bank, savings bank, or credit union

is serviced by a residential mortgage servicer, as defined under section 58.02, subdivision

20
new text end
.

Sec. 19.

Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to

read:

new text begin

Subd. 4a.

new text end

new text begin

Income-driven repayment program.

new text end

new text begin

"Income-driven repayment program"

means the Income-Contingent Repayment Plan, the Income-Based Repayment Plan, the

Income-Sensitive Repayment Plan, the Pay As You Earn Plan, the Revised Pay As You

Earn Plan, and any other state, federal, or private student loan repayment plan that is

calculated based on a borrower's income and for which a borrower's income may include

the borrower's household income for purposes of evaluating eligibility under section 58B.06,

subdivision 5.

new text end

Sec. 20.

Minnesota Statutes 2025 Supplement, section 58B.02, subdivision 8a, is amended

to read:

Subd. 8a.

Lender.

"Lender" means an entity engaged in the business of securing, making,

or extending student loans. Lender does not include
deleted text begin
, to the extent that state regulation is

preempted by federal law
deleted text end
:

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

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

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

credit union;

(4) the United States government, through Title IV of the Higher Education Act of 1965,

as amended, and administered by the United States Department of Education;

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

(6) a regulated lender organized under chapter 56, except that a regulated lender must

file the annual report required for lenders under section
58B.03, subdivision 10
; or

(7) a person who is not in the business of making student loans and who makes no more

than three student loans, with the person's own funds, during any 12-month period.

Sec. 21.

Minnesota Statutes 2024, section 58B.02, is amended by adding a subdivision to

read:

new text begin

Subd. 10.

new text end

new text begin

Written communication.

new text end

new text begin

"Written communication" means a written

correspondence that is made by a borrower and is transmitted by mail, facsimile, or

electronically through an email address or Internet website that the student loan servicer

designates to receive communications from a borrower and enables the student loan servicer

to identify the borrower's name and account. Written communication does not include a

notice on a payment medium supplied by a student loan servicer.

new text end

Sec. 22.

Minnesota Statutes 2024, section 58B.03, subdivision 10, is amended to read:

Subd. 10.

Annual report.

(a)
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Beginning
deleted text end
new text begin
On or before
new text end
March 15
deleted text begin
, 2025
deleted text end
new text begin
each year
new text end
, a

student loan lender that secures, makes, or extends student loans in Minnesota must
new text begin
submit

a
new text end
report to the commissioner on the form the commissioner provides
new text begin
. The report must include

for the previous calendar year
new text end
:

(1) a list of all schools attended by borrowers who received a student loan from the

student loan lender and resided within Minnesota at the time of the transaction and whose

debt is still outstanding, including student loans used to refinance an existing debt;

(2) the total outstanding dollar amount owed by borrowers residing in Minnesota who

received student loans from the student loan lender;

(3) the total number of student loans owed by borrowers residing in Minnesota who

received student loans from the student loan lender;

(4) the total outstanding dollar amount and number of student loans owed by borrowers

who reside in Minnesota, associated with each school identified under clause (1);

(5) the total dollar amount of student loans provided by the student loan lender to

borrowers who resided in Minnesota in the prior calendar year;

(6) the total outstanding dollar amount and number of student loans owed by borrowers

who resided in Minnesota, associated with each school identified under clause (1), that were

provided in the prior calendar year;

(7) the rate of default for borrowers residing in Minnesota who obtained student loans

from the student loan lender, if applicable;

(8) the rate of default for borrowers residing in Minnesota who obtained student loans

from the student loan lender associated with each school identified under clause (1), if

applicable;

(9) the range of initial interest rates for student loans provided by the student loan lender

to borrowers who resided in Minnesota in the prior calendar year;

(10) the total number of borrowers who received student loans identified under clause

(9), and the percentage of borrowers who received each rate identified under clause (9);

(11) the total dollar amount and number of student loans provided in the prior calendar

year by the student loan lender to borrowers who resided in Minnesota at the time of the

transaction and had a cosigner for the student loans;

(12) the total dollar amount and number of student loans provided by the student loan

lender to borrowers residing in Minnesota used to refinance a prior student loan or federal

student loan in the prior calendar year;

(13) the total dollar amount and number of student loans for which the student loan

lender had sued to collect from a borrower residing in Minnesota in the prior calendar year;

(14) a copy of any model promissory note, agreement, contract, or other instrument used

by the student loan lender in the previous year to substantiate that a borrower owes a new

debt to the student loan lender; and

(15) any other information considered necessary by the commissioner to assess the total

size and status of the student loan market and well-being of borrowers in Minnesota.

(b) In addition to annual reports, the commissioner may require additional regular or

special reports as the commissioner deems necessary to properly supervise student loan

lenders under this chapter.

(c) The commissioner of commerce must share data collected under this subdivision

with the commissioner of higher education.

Sec. 23.

Minnesota Statutes 2024, section 58B.03, subdivision 11, is amended to read:

Subd. 11.

Annual report from student loan servicers.

(a)
deleted text begin
Beginning
deleted text end
new text begin
On or before
new text end

March 15
deleted text begin
, 2025
deleted text end
new text begin
each year
new text end
, a student loan servicer that services student loans in Minnesota

must
new text begin
submit a
new text end
report to the commissioner on the form the commissioner provides. The

report must include
new text begin
for the previous calendar year
new text end
:

(1) a list of any outstanding student loans owed by borrowers who reside in Minnesota

that are serviced by the student loan servicer;

(2) the total outstanding dollar amount and number of student loans that are serviced by

the student loan servicer and owed by borrowers who reside in Minnesota;

(3) the total dollar amount and number of student loans owed by borrowers who resided

in Minnesota that were serviced by the student loan servicer in the prior calendar year;

(4) the rate of default for student loans owed by borrowers who reside in Minnesota that

are serviced by the student loan servicer, if applicable;

(5) the range of interest rates for student loans serviced by the student loan servicers to

borrowers who resided in Minnesota in the prior calendar year;

(6) the total outstanding dollar amount and number of student loans that were serviced

by the student loan servicer and owed by borrowers residing in Minnesota to refinance a

prior student loan or federal student loan; and

(7) any other information considered necessary by the commissioner to assess the total

size and status of the student loan market and well-being of borrowers in Minnesota.

(b) In addition to annual reports, the commissioner may require additional regular or

special reports as the commissioner deems necessary to properly supervise student loan

servicers under this chapter.

(c) The commissioner of commerce must share data collected under this subdivision

with the commissioner of higher education.

Sec. 24.

Minnesota Statutes 2024, section 58B.06, subdivision 4, is amended to read:

Subd. 4.

Transfer of student loan.

(a) If a borrower's student loan servicer changes

pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer

must
deleted text begin
:
deleted text end
new text begin
protect the borrower from negative consequences resulting from the sale, assignment,

transfer, system conversion, or payment the borrower makes to the original loan servicer

consistent with the original student loan servicer's policy. For purposes of this paragraph,

"negative consequences" includes but is not limited to: (1) negative credit reporting; (2)

imposing late fees that are not required by the promissory note; or (3) eligibility loss or

denial for a benefit or protection established under federal law or included in the loan

contract.
new text end

deleted text begin

(1) require the new student loan servicer to honor all benefits that were made available,

or which may have become available, to a borrower from the original student loan servicer

or are authorized under the student loan contract, including any benefits for which the student

loan borrower has not yet qualified unless that benefit is no longer available under the federal

or state laws and regulations; and

deleted text end

deleted text begin

(2) transfer to the new student loan servicer all information regarding the borrower, the

account of the borrower, and the borrower's student loan, including but not limited to the

repayment status of the student loan and the benefits described in clause (1).

deleted text end

deleted text begin

(b) The student loan servicer must complete the transfer under paragraph (a), clause (2),

less than 45 days from the date of the sale, assignment, or transfer of the servicing.

deleted text end

deleted text begin

(c) A sale, assignment, or transfer of the servicing must be completed no less than seven

days from the date the next payment is due on the student loan.

deleted text end

deleted text begin

(d) A new student loan servicer must adopt policies and procedures to verify that the

original student loan servicer has met the requirements of paragraph (a).

deleted text end

new text begin

(b) If a borrower's student loan servicer changes pursuant to the sale, assignment, or

transfer of the servicing, the original and new student loan servicer must provide a written

notice to the borrower subject to the transfer. The notice must be provided no less than 15

calendar days before the transfer's effective date and must include:

new text end

new text begin

(1) the sale, assignment, or transfer's effective date;

new text end

new text begin

(2) the name, address, website, and toll-free telephone number for the original student

loan servicer's designated point of contact for the borrower to contact in order to obtain

answers to servicing inquiries;

new text end

new text begin

(3) the name, address, website, and toll-free telephone number for the new student loan

servicer's designated point of contact for the borrower to contact in order to obtain answers

to servicing inquiries;

new text end

new text begin

(4) the date the original student loan servicer stops accepting payments on the borrower's

student loan;

new text end

new text begin

(5) the date the new student loan servicer begins accepting payments on the borrower's

student loan;

new text end

new text begin

(6) information that indicates whether the borrower's authorization for recurring electronic

funds transfers, if applicable, is transferred to the new servicer. If a recurring electronic

funds transfer is not transferred, the transferee must provide information that explains how

the borrower may establish a new recurring electronic funds transfer with the new servicer;

and

new text end

new text begin

(7) a statement that indicates the current loan balance, including the current unpaid

amount of principal, interest, and fees.

new text end

new text begin

(c) If a borrower's student loan servicer changes pursuant to the sale, assignment, or

transfer of the servicing, the original student loan servicer must ensure all necessary

information regarding a borrower, a borrower's account, and a borrower's student loan

accompanies a loan when the loan is transferred to a new student loan servicer. The transfer

of necessary information must occur within 45 calendar days of the sale, assignment, or

transfer's effective date. For purposes of this subdivision, "necessary information" includes

but is not limited to:

new text end

new text begin

(1) a schedule of all transactions credited or debited to the student loan account;

new text end

new text begin

(2) a copy of the promissory note for the student loan;

new text end

new text begin

(3) notes created by the student loan servicer's personnel that reflect communications

with the borrower regarding the student loan account;

new text end

new text begin

(4) a report of the data fields relating to the borrower's student loan account created by

the student loan servicer's electronic systems in connection with servicing practices;

new text end

new text begin

(5) copies or electronic records of information or documents the borrower provided to

the student loan servicer;

new text end

new text begin

(6) if applicable, usable data fields that contain information necessary to assess the

borrower's eligibility for forgiveness, including public service loan forgiveness; and

new text end

new text begin

(7) information necessary to compile a payment history.

new text end

new text begin

(d) A new student loan servicer must adopt and implement policies and procedures to

verify that the original student loan servicer meets the requirements of paragraph (c).

new text end

Sec. 25.

Minnesota Statutes 2024, section 58B.06, subdivision 6, is amended to read:

Subd. 6.

Records.

A student loan servicer must maintain
deleted text begin
adequate
deleted text end
new text begin
complete and accurate
new text end

records
new text begin
, including
new text end
of
new text begin
all written communication and telephone recordings, for
new text end
each student

loan
new text begin
. The records must be maintained
new text end
for
deleted text begin
not less than
deleted text end
new text begin
at least
new text end
two years following the final

payment on the student loan or the sale, assignment, or transfer of the servicing.

Sec. 26.

new text begin

[59E.01] SHORT TITLE.

new text end

new text begin

This chapter shall be known and cited as the "Rental Home Marketplace Guarantees

Act."

new text end

Sec. 27.

new text begin

[59E.02] DEFINITIONS.

new text end

new text begin

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

new text end

new text begin

(b) "Commissioner" means the commissioner of commerce.

new text end

new text begin

(c) "Person" means an individual or an entity, excluding a state or local governmental

entity.

new text end

new text begin

(d) "Platform contract holder" means a platform user who is the beneficiary or holder

of a rental home marketplace guarantee.

new text end

new text begin

(e) "Provider" means:

new text end

new text begin

(1) a rental home marketplace; or

new text end

new text begin

(2) a rental home marketplace affiliate or representative who issues or offers as well as

administers, either directly or through a third party, a rental home marketplace guarantee.

new text end

new text begin

(f) "Reimbursement insurance policy" means an insurance policy issued to a provider,

pursuant to which the insurer agrees, for the benefit of a platform contract holder, to discharge

the provider's obligations and liabilities under the terms of the rental home marketplace

guarantee in the event of the provider's default or nonperformance under the rental home

marketplace guarantee.

new text end

new text begin

(g) "Rental home marketplace" means a person that:

new text end

new text begin

(1) provides an online application, software, website, system, or other medium that:

new text end

new text begin

(i) is used to advertise or offer available property to the public; and

new text end

new text begin

(ii) connects and enables platform users' property;

new text end

new text begin

(2) provides, directly or indirectly, or maintains an online platform by:

new text end

new text begin

(i) transmitting or otherwise communicating the offer or acceptance of a transaction

between two platform users; or

new text end

new text begin

(ii) owning or operating the electronic infrastructure or technology that connects two or

more platform users; and

new text end

new text begin

(3) if the person offers rental home marketplace guarantees, offers rental home

marketplace guarantees only in a manner that is ancillary to the conduct of the person's

primary legitimate business or activity.

new text end

new text begin

(h) "Rental home marketplace guarantee" means a contract or agreement issued in

connection with a rental home marketplace, whether or not the contract or agreement includes

a separate consideration, to reimburse a user sharing property for damages the renter is

responsible for under the rental home marketplace's terms of service, with or without

additional provision for incidental payment of indemnity.

new text end

Sec. 28.

new text begin

[59E.03] REQUIREMENTS FOR DOING BUSINESS.

new text end

new text begin

(a) A provider is prohibited from issuing or offering a rental home marketplace guarantee

unless the provider has made the rental home marketplace guarantee terms available on the

provider's website and complied with this chapter.

new text end

new text begin

(b) A provider that offers rental home marketplace guarantees must file a registration

with the commissioner on a form prescribed by the commissioner.

new text end

new text begin

(c) To ensure the faithful performance of a provider's obligations to the provider's

platform contract holders, each provider who is obligated to a platform contract holder must

insure all rental home marketplace guarantees under a reimbursement insurance policy

issued (1) by an insurer authorized to transact insurance in Minnesota, or (2) pursuant to

sections 60A.195 to 60A.2095.

new text end

new text begin

(d) A person handling rental home marketplace guarantee losses on behalf of a provider

must be trained in property damage and loss assessment and interpretation of the rental

home marketplace guarantee terms before handling losses. The training must be adequate

for a person handling rental home marketplace guarantee losses to provide knowledgeable,

fair, and objective service. A provider must maintain records demonstrating completion of

the training by a person handling rental home marketplace guarantee losses.

new text end

Sec. 29.

new text begin

[59E.04] RENTAL HOME MARKETPLACE GUARANTEES ARE NOT

INSURANCE.

new text end

new text begin

A rental home marketplace guarantee does not constitute insurance and is not required

to comply with other Minnesota insurance laws if the provider complies with this chapter.

new text end

Sec. 30.

new text begin

[59E.05] REIMBURSEMENT INSURANCE POLICY.

new text end

new text begin

(a) A reimbursement insurance policy insuring rental home marketplace guarantees must

clearly state that upon the provider's default or nonperformance under the rental home

marketplace guarantee, the insurer that issued the policy must pay on behalf of the provider

any amount the provider is obligated to pay according to the rental home marketplace

guarantee.

new text end

new text begin

(b) A reimbursement insurance policy is subject to the laws and regulations governing

termination and nonrenewal of insurance policies in Minnesota. The termination of a

reimbursement insurance policy does not reduce the issuer's responsibility for rental home

marketplace guarantees issued by providers before the termination's effective date.

new text end

new text begin

(c) A provider is the agent of the insurer that issued the reimbursement insurance policy.

The insurer retains the right to seek indemnification or subrogation from the provider if the

insurer pays or is obligated to pay the platform contract holder the amount the provider was

obligated to pay under the rental home marketplace guarantee. This chapter does not prevent

or limit the insurer's right in this regard.

new text end

Sec. 31.

new text begin

[59E.06] CONSUMER PROTECTION AND DISCLOSURES.

new text end

new text begin

(a) A rental home marketplace guarantee must include a statement in substantially the

following form: "This rental home marketplace guarantee is not an insurance contract."

new text end

new text begin

(b) A rental home marketplace guarantee must contain a statement in substantially the

following form: "The provider's obligations are backed by a reimbursement insurance policy.

If the provider is unable or fails to perform on the provider's contractual obligation under

a rental home marketplace guarantee within 90 days after the date proof of loss is filed, a

platform user is entitled to make a claim directly against the insurance company subject to

the terms of the policy."

new text end

new text begin

(c) A rental home marketplace guarantee must be written in clear, understandable

language and must specify the terms, limitations, exceptions, conditions, or exclusions,

including conditions governing transferability or termination.

new text end

new text begin

(d) A provider is prohibited from making, permitting, or causing to be made a false or

misleading statement, or deliberately omitting a material statement whose omission is

considered misleading, in connection with offering or advertising a rental home marketplace

guarantee.

new text end

Sec. 32.

new text begin

[59E.07] ENFORCEMENT.

new text end

new text begin

The commissioner may enforce this chapter using the enforcement authority under

chapters 46 and 60A.

new text end

Sec. 33.

Minnesota Statutes 2024, section 60A.085, is amended to read:

60A.085 CANCELLATION OF GROUP COVERAGE; NOTIFICATION TO

COVERED PERSONS.

(a) No cancellation of any group life, group accidental death and dismemberment, group

disability income, or group medical expense policy, plan, or contract regulated under chapter

62A or 62C is effective unless the insurer has made a good faith effort to notify all covered

persons of the cancellation at least 30 days before the effective cancellation date. For purposes

of this section, an insurer has made a good faith effort to notify all covered persons if the

insurer has notified all the persons included on the list required by paragraph (b) at the home

address given and only if the list has been updated within the last 12 months.

(b) At the time of the application for coverage subject to paragraph (a), the insurer shall

obtain an accurate list of the names and home addresses of all persons to be covered.

(c) Paragraph (a) does not apply if the group policy, plan, or contract is replaced, or if

the insurer has reasonable evidence to indicate that it will be replaced, by a substantially

similar policy, plan, or contract.

(d) In no event shall this section extend coverage under a group policy, plan, or contract

more than 120 days beyond the date coverage would otherwise cancel based on the terms

of the group policy, plan, or contract.

(e) If coverage under the group policy, plan, or contract is extended by this section, then

the time period during which affected members may exercise any conversion privilege

provided for in the group policy, plan, or contract is extended for the same length of time,

plus 30 days.

new text begin

(f) In the case of a group life, group accidental death and dismemberment, or group

disability income policy, the insurer and group policyholder may agree that the group

policyholder assumes responsibility for notifying all covered persons if a cancellation under

paragraphs (a) and (c) occurs. As part of the agreement, the group policyholder must certify

to the insurer that the notification required under this section has taken place. If the employer

assumes responsibility for the notification, paragraphs (b), (d), and (e) do not apply.

new text end

Sec. 34.

Minnesota Statutes 2024, section 60K.383, is amended to read:

60K.383 TRAVEL INSURANCE.

Subdivision 1.

Definitions.

(a) As used in this section, the terms in paragraphs (b) to
deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
have the meanings given.

new text begin

(b) "Limited lines travel insurance producer" means a licensed managing general agent

or third-party administrator; licensed insurance producer, including a limited lines producer;

or travel administrator, as defined in section 65C.02, subdivision 13.

new text end

new text begin

(c) "Offer and disseminate" means providing general information, including a description

of coverage and price, as well as processing an application and collecting premiums.

new text end

deleted text begin

(b)
deleted text end
new text begin
(d)
new text end
"Travel insurance" means insurance coverage for personal risks incident to planned

travel, including
deleted text begin
,
deleted text end
but not limited to:

(1) interruption or cancellation of trip or event;

(2) loss of baggage or personal effects;

(3) damages to accommodations or rental vehicles;
deleted text begin
or
deleted text end

(4) sickness, accident, disability, or death occurring during travel
deleted text begin
.
deleted text end
new text begin
;
new text end

new text begin

(5) emergency evacuation;

new text end

new text begin

(6) repatriation of remains; or

new text end

new text begin

(7) a contractual obligation to indemnify or pay a specified amount of money to the

traveler upon determinable contingencies related to travel, as approved by the commissioner.

new text end

Travel insurance does not include major medical plans, which provide comprehensive

medical protection for travelers with trips lasting six months or longer, including those

working overseas as an expatriate or military personnel being deployed
new text begin
, or a product that

requires a specific insurance producer license
new text end
.

deleted text begin

(c) "Travel insurance producer" means an insurer designee, such as a managing general

underwriter, managing general agent, or licensed limited lines producer of travel insurance.

deleted text end

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
"Travel retailer" means a business entity that
deleted text begin
offers and disseminates
deleted text end
new text begin
:
new text end

new text begin

(1) makes, arranges, or offers planned travel; and

new text end

new text begin

(2) may offer and disseminate
new text end
travel insurance
new text begin
as a service to the travel retailer's

customers
new text end
on behalf of and under the direction of a
new text begin
limited lines
new text end
travel insurance producer.

Subd. 2.

deleted text begin
Travel retailer license
deleted text end
new text begin
Licensing and registration
new text end
.

new text begin

(a) The commissioner

may issue a limited lines travel insurance producer license to an individual or business entity

that has filed with the commissioner a limited lines travel insurance producer license

application in a form and manner prescribed by the commissioner. A limited lines travel

insurance producer must be licensed to sell, solicit, or negotiate travel insurance through a

licensed insurer. A person is prohibited from acting as a limited lines travel insurance

producer or travel insurance retailer unless the person is licensed or registered.

new text end

new text begin

(b)
new text end
A travel retailer may offer and disseminate travel insurance on behalf of and under

a
new text begin
limited lines
new text end
travel insurance producer business entity license only if
deleted text begin
the travel insurance

producer holds a business entity license, and
deleted text end
:

deleted text begin

(1) the licensed business entity is clearly identified as the licensed producer on marketing

materials and fulfillment packages distributed by travel retailers to customers; identification

shall include the entity's name and contact information;

deleted text end

new text begin

(1) the limited lines travel insurance producer or travel retailer provides to travel insurance

purchasers:

new text end

new text begin

(i) a description of the material terms or the actual material terms of the insurance

coverage;

new text end

new text begin

(ii) a description of the process to file a claim;

new text end

new text begin

(iii) a description of the process to review or cancel the travel insurance policy; and

new text end

new text begin

(iv) the identity and contact information of the insurer and limited lines travel insurance

producer;

new text end

(2) the
deleted text begin
licensed business entity
deleted text end
new text begin
limited lines travel insurance producer
new text end
keeps a register
new text begin
,

on a form prescribed by the commissioner,
new text end
of each travel retailer that offers travel insurance

on the licensed business entity's behalf. The register
new text begin
must be maintained and updated by

the limited lines travel insurance producer and
new text end
must include
new text begin
(i)
new text end
the name
new text begin
, address,
new text end
and

contact information of the travel retailer and an officer or person who directs or controls

the travel retailer's operations, and
new text begin
(ii)
new text end
the travel retailer's federal
deleted text begin
Employer
deleted text end
new text begin
tax
new text end
identification

number. The
deleted text begin
licensed business entity shall
deleted text end
new text begin
limited lines travel insurance producer must
new text end
also

certify that the travel retailer registered complies with United States Code, title 18, section

1033. The
deleted text begin
licensed business entity shall
deleted text end
new text begin
limited lines travel insurance producer must
new text end
submit

the register within 30 days upon request by the commissioner
new text begin
. Section 60K.43, subdivisions

1, 3, and 4, apply to limited lines travel insurance producers and travel retailers
new text end
;

(3) the
deleted text begin
licensed business entity
deleted text end
new text begin
limited lines travel insurance producer
new text end
has designated

one of its employees
deleted text begin
as
deleted text end
new text begin
who is
new text end
a licensed individual producer
deleted text begin
,
deleted text end
new text begin
as
new text end
a "designated responsible

producer" or "DRP
deleted text begin
,
deleted text end
" responsible for the business entity's compliance with Minnesota

insurance laws and rules;

(4) the DRP, president, secretary, treasurer, and any other officer or person who directs

or controls the
deleted text begin
licensed business entity's
deleted text end
new text begin
limited lines travel insurance producer's
new text end
insurance

operations
deleted text begin
comply
deleted text end
new text begin
complies
new text end
with the fingerprinting requirements applicable to insurance

producers in the resident state of the
deleted text begin
business entity
deleted text end
new text begin
limited lines travel insurance producer
new text end
;

(5) the
deleted text begin
licensed business entity
deleted text end
new text begin
limited lines travel insurance producer
new text end
has paid all

applicable insurance producer licensing fees
deleted text begin
as
deleted text end
set forth in Minnesota
deleted text begin
state
deleted text end
law; and

(6) the
deleted text begin
licensed business entity
deleted text end
new text begin
limited lines travel insurance producer
new text end
requires each

employee
new text begin
and authorized representative
new text end
of the travel retailer whose duties include offering

and disseminating travel insurance to receive a program of instruction or training, which

may be subject to review by the commissioner.
new text begin
The training materials must, at a minimum,

contain adequate instruction regarding the types of insurance offered, ethical sales practices,

and required disclosures provided to prospective customers.
new text end

new text begin

(c) A travel retailer offering or disseminating travel insurance must make available to

prospective purchasers a brochure or other written materials that have been approved by

the travel insurer. The materials must include information that, at a minimum:

new text end

new text begin

(1) provides the identity and contact information of the insurer and the limited lines

travel insurance producer;

new text end

new text begin

(2) explains that a person is not required to purchase travel insurance in order to purchase

any other product or service from the travel retailer; and

new text end

new text begin

(3) explains that an unlicensed travel retailer is permitted to provide only general

information about the insurance offered by the travel retailer, including a description of the

coverage and price, but is not qualified or authorized to (i) answer technical questions about

the terms and conditions of the insurance offered by the travel retailer, or (ii) evaluate the

adequacy of the customer's existing insurance coverage.

new text end

new text begin

(d) A travel retailer employee or authorized representative who is not licensed as an

insurance producer is prohibited from:

new text end

new text begin

(1) evaluating or interpreting the technical terms, benefits, and conditions contained in

the offered travel insurance coverage;

new text end

new text begin

(2) evaluating or providing advice concerning a prospective purchaser's existing insurance

coverage; or

new text end

new text begin

(3) representing that the travel retailer employee or authorized representative is a licensed

insurer, licensed producer, or insurance expert.

new text end

Subd. 3.

Offer and dissemination of travel insurance; compensation.

new text begin
Notwithstanding

any other law,
new text end
a travel retailer whose
new text begin
insurance-related
new text end
activities, and those of its employees
new text begin

and authorized representatives
new text end
, are limited to offering and disseminating travel insurance

on behalf of and under the direction of a
deleted text begin
licensed business entity
deleted text end
new text begin
limited lines travel insurance

producer
new text end
meeting the conditions stated in this section
deleted text begin
,
deleted text end
is authorized to do so and receive

related compensation
deleted text begin
,
deleted text end
upon registration by the
deleted text begin
licensed business entity. For purposes of this

section, "offering and disseminating" means providing general information, including a

description of the coverage and price, as well as processing the application, collecting

premiums, and performing other nonlicensable activities permitted by the state
deleted text end
new text begin
limited lines

travel insurance producer as provided under subdivision 2, paragraph (b), clause (2)
new text end
.

Subd. 4.

Insurer designee.

As the
deleted text begin
insurer
deleted text end
new text begin
insurer's
new text end
designee, the
new text begin
limited lines
new text end
travel

insurance producer is responsible for the acts of the travel retailer
new text begin
and must use reasonable

means to ensure compliance by the travel retailer with this section and chapter 65C
new text end
.

new text begin

Subd. 5.

new text end

new text begin

Producers of major lines of insurance.

new text end

new text begin

A person licensed in a major line of

authority as an insurance producer is authorized to sell, solicit, and negotiate travel insurance.

A property and casualty insurance producer is not required to be appointed by an insurer in

order to sell, solicit, or negotiate travel insurance.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 35.

Minnesota Statutes 2024, section 62A.135, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following terms have the

meanings given
deleted text begin
them
deleted text end
:

deleted text begin

(a)
deleted text end
new text begin
(1)
new text end
"fixed indemnity policy" is a policy form, other than an accidental death and

dismemberment policy, a disability income policy, or a long-term care policy as defined in

section
62A.46, subdivision 2
, that pays a predetermined, specified, fixed benefit for services

provided.
new text begin
Fixed indemnity policy includes short-term home health and nursing care insurance

under section 62A.70.
new text end
Claim costs under these forms are generally not subject to inflation,

although they may be subject to changes in the utilization of health care services. For policy

forms providing both expense-incurred and fixed benefits, the policy form is a fixed

indemnity policy if 50 percent or more of the total claims are for predetermined, specified,

fixed benefits;

deleted text begin

(b)
deleted text end
new text begin
(2)
new text end
"guaranteed renewable" means that, during the renewal period (to a specified

age) renewal cannot be declined nor coverage changed by the insurer for any reason other

than nonpayment of premiums, fraud, or misrepresentation, but the insurer can revise rates

on a class basis upon approval by the commissioner;

deleted text begin

(c)
deleted text end
new text begin
(3)
new text end
"noncancelable" means that, during the renewal period (to a specified age) renewal

cannot be declined nor coverage changed by the insurer for any reason other than nonpayment

of premiums, fraud, or misrepresentation and that rates cannot be revised by the insurer.

This includes policies that are guaranteed renewable to a specified age, such as 60 or 65, at

guaranteed rates; and

deleted text begin

(d)
deleted text end
new text begin
(4)
new text end
"average annualized premium" means the average of the estimated annualized

premium per covered person based on the anticipated distribution of business using all

significant criteria having a price difference, such as age, sex, amount, dependent status,

mode of payment, and rider frequency. For filing of rate revisions, the amount is the

anticipated average assuming the revised rates have fully taken effect.

Sec. 36.

Minnesota Statutes 2024, section 62A.46, subdivision 2, is amended to read:

Subd. 2.

Long-term care policy.

new text begin
(a)
new text end
"Long-term care policy" means an individual or

group policy, certificate, subscriber contract, or other evidence of coverage that provides

benefits for prescribed long-term care, including nursing facility services or home care

services, or both nursing facility services and home care services, pursuant to the

requirements of sections
62A.46
to
62A.56
.
new text begin
Long-term care policy does not include

short-term home health and nursing care insurance under section 62A.70.
new text end

new text begin

(b)
new text end
Sections
62A.46
,
62A.48
, and
62A.52
to
62A.56
do not apply to a long-term care

policy issued to
deleted text begin
(a)
deleted text end
new text begin
(1)
new text end
an employer or employers or to the trustee of a fund established by

an employer where only employees or retirees, and dependents of employees or retirees,

are eligible for coverage or
deleted text begin
(b)
deleted text end
new text begin
(2)
new text end
to a labor union or similar employee organization.
deleted text begin
The

associations exempted from the requirements of sections
62A.3099
to
62A.44
under
62A.31,

subdivision 1
, clause (c) shall not be subject to the provisions of sections
62A.46
to
62A.56

until July 1, 1988.
deleted text end

Sec. 37.

new text begin

[62A.70] SHORT-TERM HOME HEALTH AND NURSING CARE

INSURANCE.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

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

the meanings given.

new text end

new text begin

(b) "Activities of daily living" has the meaning given in section 62S.01, subdivision 2.

new text end

new text begin

(c) "Cognitive impairment" has the meaning given in section 62S.01, subdivision 9.

new text end

new text begin

(d) "Free-look period" means a period with a duration of at least 30 days, beginning the

date the policy, certificate, contract, or other evidence of coverage is issued and delivered

to the insured, during which an insured may cancel the policy, certificate, contract, or other

evidence of coverage and receive a full refund of all paid insurance premiums.

new text end

new text begin

(e) "Home health agency" has the meaning given in section 62A.46, subdivision 10.

new text end

new text begin

(f) "Insured" means a person covered under a short-term home health and nursing care

insurance policy.

new text end

new text begin

(g) "Nursing facility" has the meaning given in section 62A.46, subdivision 3.

new text end

new text begin

(h) "Plan of care" has the meaning given in section 62A.46, subdivision 8.

new text end

new text begin

(i) "Qualified insurer" means an entity licensed under chapter 62A or 62C.

new text end

new text begin

(j) "Short-term home health and nursing care insurance" means an individual or group

policy, certificate, subscriber contract, or other evidence of coverage that provides benefits

for short-term home health services or short-term nursing care services. Short-term home

health and nursing care insurance does not include:

new text end

new text begin

(1) a long-term care policy, as defined in section 62A.46, subdivision 2;

new text end

new text begin

(2) long-term care insurance, as defined in section 62S.01, subdivision 18;

new text end

new text begin

(3) Medicare supplement policies, as defined in section 62A.3099, subdivision 18; or

new text end

new text begin

(4) major medical, disability income, or hospital confinement indemnity policies.

new text end

new text begin

(k) "Short-term home health services" means one or more of the following services to

care for and treat an insured that are provided by a home health agency in a noninstitutional

setting pursuant to a written diagnosis or assessment and plan of care:

new text end

new text begin

(1) nursing and related personal care services under the direction of a registered nurse,

including the services of a home health aide;

new text end

new text begin

(2) physical therapy;

new text end

new text begin

(3) speech therapy;

new text end

new text begin

(4) respiratory therapy;

new text end

new text begin

(5) occupational therapy;

new text end

new text begin

(6) nutritional services provided by a licensed dietitian;

new text end

new text begin

(7) homemaker services, meal preparation, and similar nonmedical services;

new text end

new text begin

(8) medical social services; and

new text end

new text begin

(9) other similar medical services and health-related support services.

new text end

new text begin

(l) "Short-term nursing care services" means services to care for and treat an insured

that are provided by a nursing facility pursuant to a written diagnosis or assessment and

plan of care.

new text end

new text begin

(m) "Waiting period" means a specified time period that an insured must wait before

some or all of the insured's coverage becomes effective.

new text end

new text begin

Subd. 2.

new text end

new text begin

Short-term home health and nursing care insurance approval.

new text end

new text begin

(a) A qualified

insurer may offer, issue, deliver, and renew short-term home health and nursing care

insurance if the insurance meets the requirements of this section.

new text end

new text begin

(b) Short-term home health and nursing care insurance may be offered, issued, delivered,

or renewed only by a qualified insurer.

new text end

new text begin

(c) Short-term home health and nursing care insurance must not be offered, issued,

delivered, or renewed until the short-term home health and nursing care insurance is approved

by the commissioner as necessary under sections 62A.02 and 62A.135.

new text end

new text begin

Subd. 3.

new text end

new text begin

Policy requirements.

new text end

new text begin

(a) Short-term home health and nursing care insurance

must provide benefits upon:

new text end

new text begin

(1) cognitive impairment; or

new text end

new text begin

(2) the insured's inability to perform at least two activities of daily living without

substantial assistance.

new text end

new text begin

(b) Short-term home health and nursing care insurance must not provide coverage for a

period exceeding 360 days.

new text end

new text begin

(c) Short-term home health and nursing care insurance must provide a free-look period.

new text end

new text begin

(d) Short-term home health and nursing care insurance must not be canceled due to an

insured's deterioration in health status or use of benefits.

new text end

new text begin

(e) An insurer may deny the renewal of a policy, certificate, contract, or other evidence

of coverage of short-term home health and nursing care insurance only for:

new text end

new text begin

(1) nonpayment of a premium by the insured;

new text end

new text begin

(2) fraud or misrepresentation by the insured;

new text end

new text begin

(3) termination of the insurer's authority to transact business in the state; or

new text end

new text begin

(4) the insured's exhaustion of the maximum benefit period.

new text end

new text begin

(f) Upon the conversion or replacement by an insurer of a policy, certificate, contract,

or other evidence of coverage containing a waiting period, the insurer is prohibited from

establishing a waiting period that differs from the original waiting period.

new text end

new text begin

Subd. 4.

new text end

new text begin

Required disclosures.

new text end

new text begin

Short-term home health and nursing care insurance must

not be offered or issued without providing the following written disclosures:

new text end

new text begin

(1) a statement, in bold text, that the policy, certificate, contract, or other evidence of

coverage is supplemental health insurance; is not long-term care insurance; and is not a

policy under the Minnesota partnership for long-term care program;

new text end

new text begin

(2) a clear and understandable explanation of the free-look period; and

new text end

new text begin

(3) a clear and understandable explanation of all renewability and continuity provisions.

new text end

Sec. 38.

new text begin

[65C.01] SCOPE AND PURPOSES.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Purpose.

new text end

new text begin

The purpose of this chapter is to promote the public welfare

by creating a comprehensive legal framework within which travel insurance may be sold

in Minnesota.

new text end

new text begin

Subd. 2.

new text end

new text begin

Application.

new text end

new text begin

(a) This chapter applies to:

new text end

new text begin

(1) travel insurance that covers any Minnesota resident and is sold, solicited, negotiated,

or offered in Minnesota; and

new text end

new text begin

(2) policies and certificates that are delivered or issued for delivery in Minnesota.

new text end

new text begin

(b) This chapter does not apply to cancellation fee waivers or travel assistance services,

except as expressly provided in this chapter.

new text end

new text begin

Subd. 3.

new text end

new text begin

Applicability of other law.

new text end

new text begin

All other applicable provisions of Minnesota

insurance law apply to travel insurance, except that this chapter supersedes any general

provisions of law that would otherwise apply to travel insurance.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 39.

new text begin

[65C.02] DEFINITIONS.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Application.

new text end

new text begin

For purposes of this chapter, the following terms have the

meanings given.

new text end

new text begin

Subd. 2.

new text end

new text begin

Aggregator site.

new text end

new text begin

"Aggregator site" means a website that provides access to

information, including product and insurer information, regarding insurance products from

more than one insurer for use in comparison shopping.

new text end

new text begin

Subd. 3.

new text end

new text begin

Blanket travel insurance.

new text end

new text begin

"Blanket travel insurance" means a travel insurance

policy issued to an eligible group providing coverage for specific classes of persons defined

in the policy, with coverage provided to all members of the eligible group without a separate

charge to individual members of the eligible group.

new text end

new text begin

Subd. 4.

new text end

new text begin

Cancellation fee waiver.

new text end

new text begin

"Cancellation fee waiver" means a contractual

agreement between a travel services supplier and the travel services supplier's customer to

waive some or all of the nonrefundable cancellation fee provisions contained in the supplier's

underlying travel contract, with or without regard to the reason for the cancellation or form

of reimbursement. A cancellation fee waiver is not insurance.

new text end

new text begin

Subd. 5.

new text end

new text begin

Commissioner.

new text end

new text begin

"Commissioner" means the commissioner of commerce.

new text end

new text begin

Subd. 6.

new text end

new text begin

Eligible group.

new text end

new text begin

"Eligible group" means two or more persons who are engaged

in a common enterprise or have an economic, educational, or social affinity or relationship,

including but not limited to:

new text end

new text begin

(1) an entity engaged in the business of providing travel or travel services, including but

not limited to:

new text end

new text begin

(i) a tour operator, lodging provider, vacation property owner, hotel, resort, travel club,

travel agency, property manager, cultural exchange program, and common carrier; or

new text end

new text begin

(ii) the operator, owner, or lessor of a means of transporting passengers, including but

not limited to an airline, cruise line, railroad, steamship company, and public bus carrier,

if all group members or customers have a common exposure to the risk attendant to the

particular type of travel;

new text end

new text begin

(2) a college, school, or other institution of learning covering students, teachers,

employees, or volunteers;

new text end

new text begin

(3) an employer covering a group of employees, volunteers, contractors, board of

directors, dependents, or guests;

new text end

new text begin

(4) a sports team, camp, or sports team or camp sponsor covering participants, members,

campers, employees, officials, supervisors, or volunteers;

new text end

new text begin

(5) a religious, charitable, recreational, educational, or civic organization, or branch of

a religious, charitable, recreational, educational, or civic organization, covering any group

of members, participants, or volunteers;

new text end

new text begin

(6) a financial institution, financial institution vendor, parent holding company, trustee,

or agent or designee of one or more financial institutions or financial institution vendors,

including account holders, credit card holders, debtors, guarantors, or purchasers;

new text end

new text begin

(7) an incorporated or unincorporated association, including a labor union, that (i) has

a common interest, constitution, and bylaws, and (ii) is organized and maintained in good

faith for purposes other than obtaining insurance for members or participants of the

association covering the association's members;

new text end

new text begin

(8) a trust or the trustees of a fund established, created, or maintained for the benefit of

and to cover members, employees, or customers, subject to the commissioner authorizing

the use of a trust by one or more associations meeting the requirements under clause (7);

new text end

new text begin

(9) an entertainment production company covering a group of participants, volunteers,

audience members, contestants, or workers;

new text end

new text begin

(10) a volunteer fire department, ambulance, rescue, police, court, first aid, civil defense,

or other volunteer group;

new text end

new text begin

(11) a preschool, day care institution for children or adults, or senior citizen club;

new text end

new text begin

(12) an automobile or truck rental or leasing company covering a group of individuals

who may become renters, lessees, or passengers as defined by the group of individuals'

travel status on the rented or leased vehicles. The common carrier, operator, owner or lessor

of a means of transportation, or automobile or truck rental or leasing company is the

policyholder under a policy governed by this section; or

new text end

new text begin

(13) any other group the commissioner determines (i) is engaged in a common enterprise

or has an economic, educational, or social affinity or relationship, and (ii) for which policy

issuance is not contrary to the public interest.

new text end

new text begin

Subd. 7.

new text end

new text begin

Fulfillment materials.

new text end

new text begin

"Fulfillment materials" means documentation sent to

a person who purchases a travel protection plan that confirms the purchase and provides

the travel protection plan's coverage and assistance details.

new text end

new text begin

Subd. 8.

new text end

new text begin

Group travel insurance.

new text end

new text begin

"Group travel insurance" means travel insurance

issued to an eligible group.

new text end

new text begin

Subd. 9.

new text end

new text begin

Limited lines travel insurance producer.

new text end

new text begin

"Limited lines travel insurance

producer" has the meaning given in section 60K.383, subdivision 1, paragraph (b).

new text end

new text begin

Subd. 10.

new text end

new text begin

Offer and disseminate.

new text end

new text begin

"Offer and disseminate" has the meaning given in

section 60K.383, subdivision 1, paragraph (c).

new text end

new text begin

Subd. 11.

new text end

new text begin

Primary certificate holder.

new text end

new text begin

"Primary certificate holder" means an individual

who elects and purchases travel insurance under a group policy.

new text end

new text begin

Subd. 12.

new text end

new text begin

Primary policyholder

new text end

new text begin

"Primary policyholder" means an individual who elects

and purchases individual travel insurance.

new text end

new text begin

Subd. 13.

new text end

new text begin

Travel administrator.

new text end

new text begin

"Travel administrator" means a person who directly

or indirectly underwrites; collects charges, collateral, or premiums from; or adjusts or settles

claims on residents of Minnesota in connection with travel insurance. A person is not a

travel administrator if the person's only actions that otherwise indicate the person is a travel

administrator are:

new text end

new text begin

(1) the person works for a travel administrator, to the extent that the person's activities

are subject to the travel administrator's supervision and control;

new text end

new text begin

(2) the insurance producer sells insurance or engages in administrative and claims-related

activities within the scope of the producer's license;

new text end

new text begin

(3) the travel retailer (i) offers and disseminates travel insurance, and (ii) is registered

under the license of a limited lines travel insurance producer under this chapter;

new text end

new text begin

(4) the individual (i) adjusts or settles claims in the normal course of the individual's

practice or employment as an attorney, and (ii) does not collect charges or premiums in

connection with insurance coverage; or

new text end

new text begin

(5) the business entity is affiliated with a licensed insurer while acting as a travel

administrator for the direct and assumed insurance business of an affiliated insurer.

new text end

new text begin

Subd. 14.

new text end

new text begin

Travel assistance services.

new text end

new text begin

"Travel assistance services" means noninsurance

services (1) for which the consumer is not indemnified based on a fortuitous event, and (2)

where providing the service does not result in transfer or shifting of risk that would constitute

the business of insurance. Travel assistance services include but are not limited to: security

advisories; destination information; vaccination and immunization information services;

travel reservation services; entertainment; activity and event planning; translation assistance;

emergency messaging; international legal and medical referrals; medical case monitoring;

coordination of transportation arrangements; emergency cash transfer assistance; medical

prescription replacement assistance; passport and travel document replacement assistance;

lost luggage assistance; concierge services; and any other service that is furnished in

connection with planned travel. Travel assistance services are not insurance and are not

related to insurance.

new text end

new text begin

Subd. 15.

new text end

new text begin

Travel insurance.

new text end

new text begin

"Travel insurance" has the meaning given in section

60K.383, subdivision 1, paragraph (d).

new text end

new text begin

Subd. 16.

new text end

new text begin

Travel protection plan.

new text end

new text begin

"Travel protection plan" means a plan that provides

one or more of the following:

new text end

new text begin

(1) travel insurance;

new text end

new text begin

(2) travel assistance services; or

new text end

new text begin

(3) cancellation fee waivers.

new text end

new text begin

Subd. 17.

new text end

new text begin

Travel retailer.

new text end

new text begin

"Travel retailer" has the meaning given in section 60K.383,

subdivision 1, paragraph (e).

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 40.

new text begin

[65C.04] TRAVEL PROTECTION PLANS.

new text end

new text begin

A travel protection plan may be offered at one price for the combined features that the

travel protection plan offers in Minnesota if:

new text end

new text begin

(1) the travel protection plan:

new text end

new text begin

(i) clearly discloses to the consumer, at or before the time the travel protection plan is

purchased, that the travel protection plan includes travel insurance, travel assistance services,

and cancellation fee waivers, as applicable; and

new text end

new text begin

(ii) provides information and an opportunity, at or prior to the time the travel protection

plan is purchased, for the consumer to obtain additional information regarding the features

and pricing of the travel insurance, travel assistance services, and cancellation fee waivers;

and

new text end

new text begin

(2) the fulfillment materials:

new text end

new text begin

(i) describe and delineate the travel insurance, travel assistance services, and cancellation

fee waivers in the travel protection plan; and

new text end

new text begin

(ii) include the travel insurance disclosures and the contact information for the persons

providing travel assistance services and cancellation fee waivers, as applicable.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 41.

new text begin

[65C.05] SALES PRACTICES.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Other applicable law.

new text end

new text begin

Except as otherwise provided in this section, a

person offering travel insurance to residents of Minnesota is subject to sections 72A.17 to

72A.32. If this chapter conflicts with chapters 59A to 79A regarding the sale and marketing

of travel insurance and travel protection plans, this chapter prevails.

new text end

new text begin

Subd. 2.

new text end

new text begin

Illusory travel insurance.

new text end

new text begin

A person that offers or sells a travel insurance policy

that could never result in payment of claims for an insured individual under the policy is

engaging in an unfair trade practice under sections 72A.17 to 72A.32.

new text end

new text begin

Subd. 3.

new text end

new text begin

Marketing.

new text end

new text begin

(a) All documents provided to consumers before purchasing travel

insurance, including but not limited to sales materials, advertising materials, and marketing

materials, must be consistent with the travel insurance policy, including but not limited to

forms, endorsements, policies, rate filings, and certificates of insurance.

new text end

new text begin

(b) A person that offers travel insurance policies or certificates that contain preexisting

condition exclusions must, before the insurance is purchased, provide a consumer with

information and an opportunity to learn more about the preexisting condition exclusions.

The information about preexisting condition exclusions must be included in the insurance

policy's coverage fulfillment materials.

new text end

new text begin

(c) The fulfillment materials and the information described in section 60K.383,

subdivision 2, paragraph (b), clause (1), must be provided to a policyholder or certificate

holder as soon as practicable after a travel protection plan is purchased. Unless the insured

individual has started a covered trip or filed a claim under the travel insurance coverage, a

policyholder or certificate holder may cancel a policy or certificate for a full refund of the

travel protection plan price from the date a travel protection plan is purchased until at least:

new text end

new text begin

(1) 15 days after the date the travel protection plan's fulfillment materials are delivered

by mail; or

new text end

new text begin

(2) ten days after the date the travel protection plan's fulfillment materials are delivered

by means other than mail.

new text end

new text begin

(d) For purposes of this section, "delivery" means (1) handing fulfillment materials to

the policyholder or certificate holder, or (2) sending fulfillment materials by mail or electronic

means to the policyholder or certificate holder.

new text end

new text begin

(e) The company must disclose in the policy documentation and fulfillment materials

whether the travel insurance is primary or secondary to other applicable coverage.

new text end

new text begin

(f) Travel insurance that is marketed directly to a consumer through an insurer's website

or by others through an aggregator site is not an unfair trade practice or other violation of

law if an accurate summary or short description of coverage is provided on the web page,

provided the consumer has access to the policy's full provisions by electronic means.

new text end

new text begin

Subd. 4.

new text end

new text begin

Opt out.

new text end

new text begin

A person that offers, solicits, or negotiates travel insurance or travel

protection plans on an individual or group basis is prohibited from offering, soliciting, or

negotiating travel insurance or travel protection plans by using negative option or opting

out that requires a consumer to take an affirmative action to deselect coverage, including

by unchecking a box on an electronic form, when the consumer purchases a trip.

new text end

new text begin

Subd. 5.

new text end

new text begin

Other prohibitions.

new text end

new text begin

A person that markets blanket travel insurance coverage

as free of cost is engaging in an unfair trade practice.

new text end

new text begin

Subd. 6.

new text end

new text begin

Coverage required by other jurisdictions.

new text end

new text begin

If a consumer's destination

jurisdiction requires insurance coverage, a person does not engage in an unfair trade practice

if the person requires a consumer to choose between the following options as a condition

of purchasing a trip or travel package:

new text end

new text begin

(1) purchasing the coverage required by the destination jurisdiction through the travel

retailer or limited lines travel insurance producer supplying the trip or travel package; or

new text end

new text begin

(2) agreeing to obtain and provide proof of coverage that meets the destination

jurisdiction's requirements prior to departure.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 42.

new text begin

[65C.06] TRAVEL ADMINISTRATORS.

new text end

new text begin

(a) Notwithstanding chapters 59A to 79A, a person is prohibited from acting as or

representing that the person is a travel administrator for travel insurance in Minnesota unless

the person:

new text end

new text begin

(1) is a licensed property and casualty insurance producer in Minnesota for activities

permitted under the property and casualty insurance producer license;

new text end

new text begin

(2) holds a valid managing general agent license in Minnesota; or

new text end

new text begin

(3) holds a valid third-party administrator license in Minnesota.

new text end

new text begin

(b) A travel administrator and the travel administrator's employees are exempt from the

licensing requirements of chapter 72B for travel insurance the travel administrator

administers.

new text end

new text begin

(c) An insurer is responsible for:

new text end

new text begin

(1) the acts of a travel administrator administering travel insurance underwritten by the

insurer; and

new text end

new text begin

(2) ensuring the travel administrator maintains all books and records relevant to the

insurer that the travel administrator must make available to the commissioner upon request.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 43.

new text begin

[65C.07] POLICY.

new text end

new text begin

(a) Notwithstanding chapters 59A to 79A, travel insurance is classified and filed for

purposes of rates and forms under an inland marine line of insurance. Notwithstanding this

paragraph, travel insurance that provides coverage for illness, accident, disability, or death

occurring during travel, either exclusively or in conjunction with related emergency

evacuation or repatriation of remains coverage, or incidental limited property and casualty

benefits, including baggage or trip cancellation, may be filed under either an accident and

health line of insurance or an inland marine line of insurance.

new text end

new text begin

(b) Travel insurance may be offered and issued in the form of an individual, group, or

blanket policy.

new text end

new text begin

(c) Eligibility and underwriting standards for travel insurance may be developed and

provided based on travel protection plans designed for individual or identified marketing

or distribution channels, provided the standards also meet the underwriting standards for

an inland marine line of insurance under Minnesota law.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective 90 days following the date of final

enactment.

new text end

Sec. 44.

Minnesota Statutes 2024, section 72A.13, subdivision 1, is amended to read:

Subdivision 1.

Penalties.

Any company, corporation, association, society, or other

insurer, or any officer or agent thereof, which or who solicits, issues or delivers to any

person in this state any policy in violation of the provisions of sections
60A.06, subdivision

3

deleted text begin
or
deleted text end
new text begin
,
new text end

62A.01
to
62A.10
,
new text begin
or 62A.70
new text end
may be punished by a fine of not more than $200 for

each offense, and the commissioner may revoke the license of any company, corporation,

association, society, or other insurer of another state or country, or of the agent thereof,

which or who willfully violates any provision of sections
60A.06, subdivision 3

deleted text begin
or
deleted text end
new text begin
,
new text end

62A.01

to
62A.10
new text begin
, or 62A.70
new text end
.

Sec. 45.

Minnesota Statutes 2024, section 72A.18, subdivision 2, is amended to read:

Subd. 2.

Person.

"Person" means any individual, corporation, association, partnership,

reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, or any other legal

entity, engaged in the business of insurance, including an agent, a solicitor,
deleted text begin
or
deleted text end
an adjuster
deleted text begin

and
deleted text end
new text begin
, or an insurance lead generator.
new text end
For the purposes of sections
72A.31
and
72A.32
"person"

shall in addition mean any person, firm or corporation even though not engaged in the

business of insurance.

Sec. 46.

Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to

read:

new text begin

Subd. 3.

new text end

new text begin

Insurance lead generator.

new text end

new text begin

(a) "Insurance lead generator" means a person who

uses a lead-generating device to:

new text end

new text begin

(1) publicize the availability of what is or what purports to be an insurance product or

service that the person is not licensed to sell directly to a customer;

new text end

new text begin

(2) identify a customer who may be interested in learning more about an insurance

product; or

new text end

new text begin

(3) sell or transmit customer information to an insurer or producer for the purposes of

subsequent contact or sales activity.

new text end

new text begin

(b) For purposes of sections 72A.17 to 72A.32, insurance lead generator does not include

an insurer, as defined under section 72A.201, subdivision 3, clause (9), or an insurance

producer, as defined under section 60K.31, subdivision 6.

new text end

Sec. 47.

Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to

read:

new text begin

Subd. 4.

new text end

new text begin

Lead-generating device.

new text end

new text begin

"Lead-generating device" means communication

directed to the public that, regardless of the communication's form, content, or stated purpose,

is intended to result in compiling or qualifying a list containing names and other personal

information to solicit Minnesota residents to purchase what is or what purports to be an

insurance product or service.

new text end

Sec. 48.

Minnesota Statutes 2024, section 72A.18, is amended by adding a subdivision to

read:

new text begin

Subd. 5.

new text end

new text begin

Recording.

new text end

new text begin

"Recording" means documenting a sale or verifying a call, including

a virtual technology call, to market an insurance product or service.

new text end

Sec. 49.

Minnesota Statutes 2024, section 72A.20, subdivision 2, is amended to read:

Subd. 2.

False information and advertising generally.

Making, publishing,

disseminating, circulating, or placing before the public, or causing, directly or indirectly,

to be made, published, disseminated, circulated, or placed before the public, in a newspaper,

magazine,
new text begin
email, Internet advertisement or posting,
new text end
or other publication, or in the form of

a notice, circular, pamphlet, letter,
new text begin
electronic posting of any kind,
new text end
or poster, or over any

radio station,
new text begin
or using the Internet or other electronic means,
new text end
or in any other way, an

advertisement, announcement, or statement, containing any assertion, representation, or

statement with respect to the business of insurance, or with respect to any person in the

conduct of the person's insurance business, which is untrue, deceptive, or misleading, shall

constitute an unfair method of competition and an unfair and deceptive act or practice.

Sec. 50.

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

read:

new text begin

Subd. 2a.

new text end

new text begin

Failure to maintain certain records.

new text end

new text begin

An insurance lead generator must

maintain books, records, documents, and other business records in a manner that ensures

data regarding complaints and marketing are accessible and retrievable for examination by

the insurance commissioner. An insurance lead generator must maintain data under this

subdivision for at least the current calendar year and the two preceding years.

new text end

Sec. 51.

Minnesota Statutes 2024, section 80G.01, subdivision 5a, is amended to read:

Subd. 5a.

Minnesota transaction.

"Minnesota transaction" means a bullion product

transaction conducted:

(1) by a dealer
deleted text begin
that is incorporated, registered, domiciled, or otherwise
deleted text end
located in

Minnesota;

(2) by a dealer representative at a location in Minnesota;

(3) between a dealer and a consumer
deleted text begin
who lives
deleted text end
in Minnesota; or

(4) between a dealer and a Minnesota consumer when the transaction involves:

(i) delivering or shipping a bullion product to an address in Minnesota;
new text begin
or
new text end

deleted text begin

(ii) delivering to or shipping from a precious metal depository on behalf of a Minnesota

resident; or

deleted text end

deleted text begin

(iii)
deleted text end
new text begin
(ii)
new text end
making payment to a consumer or receiving a payment from a consumer at an

address in Minnesota, unless the transaction occurs when the consumer is
deleted text begin
at a business

location
deleted text end
outside of Minnesota.

Sec. 52.

new text begin

[82B.081] NOTICE TO COMMISSIONER.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Change of application information.

new text end

new text begin

A licensee must provide notice to

the commissioner if the information in the license application filed with the commissioner

changes. The notice must be provided in writing or another format prescribed by the

commissioner within ten days of the date the change occurs. For purposes of this subdivision,

an information change requiring notice includes but is not limited to a change with respect

to the licensee's personal name, trade name, address, or business location.

new text end

new text begin

Subd. 2.

new text end

new text begin

Civil judgment.

new text end

new text begin

The licensee must notify the commissioner of a final adverse

decision or court order, whether or not the decision or order is appealed, resulting from a

proceeding in which the licensee was named as a defendant and the final adverse decision

relates to fraud or misrepresentation. The notice must be provided in writing or another

format prescribed by the commissioner within ten days of the date the final adverse decision

or court order is issued.

new text end

new text begin

Subd. 3.

new text end

new text begin

Disciplinary action.

new text end

new text begin

The licensee must notify the commissioner of a disciplinary

action involving the licensee, including but not limited to a suspension or revocation of the

licensee's real property appraiser license or another occupational license issued by Minnesota

or another jurisdiction. The notice must be provided in writing or another format prescribed

by the commissioner within ten days of the date the disciplinary action occurs.

new text end

new text begin

Subd. 4.

new text end

new text begin

Criminal offense.

new text end

new text begin

The licensee must notify the commissioner if the licensee

is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a

felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a

similar violation of a real property appraiser licensing law. The notice must be provided in

writing or another format prescribed by the commissioner within ten days of the date the

charge, judgment, or plea occurs.

new text end

Sec. 53.

new text begin

[82C.031] NOTICE TO COMMISSIONER.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Change of application information.

new text end

new text begin

A licensee must provide notice to

the commissioner if the information in the license application filed with the commissioner

changes. The notice must be provided in writing or another format prescribed by the

commissioner within ten days of the date the change occurs. For purposes of this subdivision,

an information change requiring notice includes but is not limited to a change with respect

to the licensee's personal name, trade name, address, or business location.

new text end

new text begin

Subd. 2.

new text end

new text begin

Civil judgment.

new text end

new text begin

The licensee must notify the commissioner of a final adverse

decision or court order, whether or not the decision or order is appealed, resulting from a

proceeding in which the licensee was named as a defendant and the final adverse decision

relates to fraud or misrepresentation. The notice must be provided in writing or another

format prescribed by the commissioner within ten days of the date the final adverse decision

or court order is issued.

new text end

new text begin

Subd. 3.

new text end

new text begin

Disciplinary action.

new text end

new text begin

The licensee must notify the commissioner of a disciplinary

action involving the licensee, including but not limited to a suspension or revocation of the

licensee's real property appraisal management company license issued by another jurisdiction.

The notice must be provided in writing or another format prescribed by the commissioner

within ten days of the date the disciplinary action occurs.

new text end

new text begin

Subd. 4.

new text end

new text begin

Criminal offense.

new text end

new text begin

The licensee must notify the commissioner if the licensee

is charged with, is adjudged guilty of, or enters a plea of guilty or nolo contendere to a

felony charge or a gross misdemeanor charge that alleges fraud, misrepresentation, or a

similar violation of a real property appraisal management company licensing law. The notice

must be provided in writing or another format prescribed by the commissioner within ten

days of the date the charge, judgment, or plea occurs.

new text end

Sec. 54.

Minnesota Statutes 2024, section 256B.0913, subdivision 4, is amended to read:

Subd. 4.

Eligibility for funding for services for nonmedical assistance recipients.

(a)

Funding for services under the alternative care program is available to persons who meet

the following criteria:

(1) the person is a citizen of the United States or a United States national;

(2) the person has been determined by a community assessment under section
256B.0911

to be a person who would require the level of care provided in a nursing facility, as

determined under section
256B.0911, subdivision
26, but for the provision of services under

the alternative care program;

(3) the person is age 65 or older;

(4) the person would be eligible for medical assistance within 135 days of admission to

a nursing facility;

(5) the person is not ineligible for the payment of long-term care services by the medical

assistance program due to an asset transfer penalty under section
256B.0595
or equity

interest in the home exceeding $500,000 as stated in section
256B.056
;

(6) the person needs long-term care services that are not funded through other state or

federal funding, or other health insurance or other third-party insurance such as long-term

care insurance
new text begin
. For purposes of this clause, short-term home health and nursing care insurance

under section 62A.70 does not constitute health or other third-party insurance
new text end
;

(7) except for individuals described in clause (8), the monthly cost of the alternative

care services funded by the program for this person does not exceed 75 percent of the

monthly limit described under section
256S.18
. This monthly limit does not prohibit the

alternative care client from payment for additional services, but in no case may the cost of

additional services purchased under this section exceed the difference between the client's

monthly service limit defined under section
256S.04
, and the alternative care program

monthly service limit defined in this paragraph. If care-related supplies and equipment or

environmental modifications and adaptations are or will be purchased for an alternative

care services recipient, the costs may be prorated on a monthly basis for up to 12 consecutive

months beginning with the month of purchase. If the monthly cost of a recipient's other

alternative care services exceeds the monthly limit established in this paragraph, the annual

cost of the alternative care services shall be determined. In this event, the annual cost of

alternative care services shall not exceed 12 times the monthly limit described in this

paragraph;

(8) for individuals assigned a case mix classification A as described under section

256S.18
, with (i) no dependencies in activities of daily living, or (ii) up to two dependencies

in bathing, dressing, grooming, walking, and eating when the dependency score in eating

is three or greater as determined by an assessment performed under section
256B.0911
, the

monthly cost of alternative care services funded by the program cannot exceed $593 per

month for all new participants enrolled in the program on or after July 1, 2011. This monthly

limit shall be applied to all other participants who meet this criteria at reassessment. This

monthly limit shall be increased annually as described in section
256S.18
. This monthly

limit does not prohibit the alternative care client from payment for additional services, but

in no case may the cost of additional services purchased exceed the difference between the

client's monthly service limit defined in this clause and the limit described in clause (7) for

case mix classification A;

(9) the person is making timely payments of the assessed monthly fee. A person is

ineligible if payment of the fee is over 60 days past due, unless the person agrees to:

(i) the appointment of a representative payee;

(ii) automatic payment from a financial account;

(iii) the establishment of greater family involvement in the financial management of

payments; or

(iv) another method acceptable to the lead agency to ensure prompt fee payments; and

(10) for a person participating in consumer-directed community supports, the person's

monthly service limit must be equal to the monthly service limits in clause (7), except that

a person assigned a case mix classification L must receive the monthly service limit for

case mix classification A.

(b) The lead agency may extend the client's eligibility as necessary while making

arrangements to facilitate payment of past-due amounts and future premium payments.

Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be

reinstated for a period of 30 days.

(c) Alternative care funding under this subdivision is not available for a person who is

a medical assistance recipient or who would be eligible for medical assistance without a

spenddown or waiver obligation. A person whose initial application for medical assistance

and the elderly waiver program is being processed may be served under the alternative care

program for a period up to 60 days. If the individual is found to be eligible for medical

assistance, medical assistance must be billed for services payable under the federally

approved elderly waiver plan and delivered from the date the individual was found eligible

for the federally approved elderly waiver plan. Notwithstanding this provision, alternative

care funds may not be used to pay for any service the cost of which: (i) is payable by medical

assistance; (ii) is used by a recipient to meet a waiver obligation; or (iii) is used to pay a

medical assistance income spenddown for a person who is eligible to participate in the

federally approved elderly waiver program under the special income standard provision.

(d) Alternative care funding is not available for a person who resides in a licensed nursing

home, certified boarding care home, hospital, or intermediate care facility, except for case

management services which are provided in support of the discharge planning process for

a nursing home resident or certified boarding care home resident to assist with a relocation

process to a community-based setting.

(e) Alternative care funding is not available for a person whose income is greater than

the maintenance needs allowance under section
256S.05
, but equal to or less than 120 percent

of the federal poverty guideline effective July 1 in the fiscal year for which alternative care

eligibility is determined, who would be eligible for the elderly waiver with a waiver

obligation.

Sec. 55.

Minnesota Statutes 2024, section 325E.21, subdivision 1b, is amended to read:

Subd. 1b.

Purchase or acquisition record required.

(a) Every scrap metal dealer,

including an agent, employee, or representative of the dealer, shall create a record written

in English, using an electronic record program at the time of each purchase or acquisition

of scrap metal or a motor vehicle. The record must include:

(1) a complete and accurate account or description, including the weight if customarily

purchased by weight, of the scrap metal or motor vehicle purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased

or acquired and a unique transaction identifier;

(3) a photocopy or electronic scan of the seller's
new text begin
:
new text end

new text begin

(i)
new text end
proof of identification
new text begin
,
new text end
including the identification number
new text begin
, if the seller is an individual;

or
new text end

new text begin

(ii) certificate of authority to transact business in Minnesota and business tax identification

number, if the seller is an entity
new text end
;

(4) the amount paid and the number of the check or electronic transfer used to purchase

or acquire the scrap metal or motor vehicle;

(5) the license plate number and description of the vehicle used by the person when

delivering the scrap metal or motor vehicle, including the vehicle make and model, and any

identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;

(6) a statement signed by the seller, under penalty of perjury as provided in section

609.48
, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens

or encumbrances and the seller has the right to sell it;

(7) a copy of the receipt, which must include at least the following information: the name

and address of the dealer, the date and time the scrap metal or motor vehicle was received

by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount

paid for the scrap metal or motor vehicle;

(8) the identity or identifier of the employee completing the transaction; and

(9) if the seller is attempting to sell copper metal, a photocopy or electronic scan of the

seller's:

(i) current license to sell scrap metal copper issued by the commissioner under subdivision

2c; or

(ii) the documentation used to support the seller being deemed to hold a license to sell

scrap metal copper under subdivision 2c, paragraph (f), clauses (1) to (3).

(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall

at all reasonable times be open to the inspection of any properly identified law enforcement

officer.

(c) Except for the purchase or acquisition of detached catalytic converters or motor

vehicles, no record is required for property purchased or acquired from merchants,

manufacturers, salvage pools, insurance companies, rental car companies, financial

institutions, charities, dealers licensed under section
168.27
, or wholesale dealers, having

an established place of business, or of any goods purchased or acquired at open sale from

any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained

and kept by the person, which must be shown upon demand to any properly identified law

enforcement officer.

(d) The dealer must provide a copy of the receipt required under paragraph (a), clause

(7), to the seller in every transaction.

(e) The commissioner of public safety and law enforcement agencies in the jurisdiction

where a dealer is located may conduct inspections and audits as necessary to ensure

compliance, refer violations to the city or county attorney for criminal prosecution, and

notify the registrar of motor vehicles.

(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,

employee, or representative may not disclose personal information concerning a customer

without the customer's consent unless the disclosure is required by law or made in response

to a request from a law enforcement agency. A scrap metal dealer must implement reasonable

safeguards to protect the security of the personal information and prevent unauthorized

access to or disclosure of the information. For purposes of this paragraph, "personal

information" is any individually identifiable information gathered in connection with a

record under paragraph (a).

Sec. 56.

Minnesota Statutes 2024, section 325E.21, subdivision 2c, is amended to read:

Subd. 2c.

License required for scrap metal copper sale.

(a) Beginning January 1,

2025, a person is prohibited from engaging in the sale of scrap metal copper unless the

person has a valid license issued by the commissioner under this subdivision.

(b) On the first Friday of the months of April and October of each calendar year, from

8:00 a.m. to 5:00 p.m., a scrap metal dealer may purchase up to $25 of scrap metal copper

from individuals who do not have an approved license to sell scrap metal copper under this

subdivision. All other requirements of subdivision 1b apply and must be documented by

the scrap metal dealer on the dates specified in this paragraph.

(c) A seller of scrap metal copper may apply to the commissioner on a form prescribed

by the commissioner.

new text begin

(d)
new text end
The application form
new text begin
for an individual
new text end
must include, at a minimum:

(1) the name, permanent address, telephone number, and date of birth of the applicant;

and

(2) an acknowledgment that the applicant obtained the copper by lawful means in the

regular course of the applicant's business, trade, or authorized construction work.

new text begin

(e) The application form for an entity must include, at a minimum:

new text end

new text begin

(1) the name, legal entity type, principal business address, telephone number, and date

of formation of the entity; and

new text end

new text begin

(2) an acknowledgment that the applicant obtained the copper by lawful means in the

regular course of the applicant's business, trade, or authorized construction work.

new text end

deleted text begin

(d)
deleted text end
new text begin
(f)
new text end
Each application must be accompanied by a nonrefundable fee of $250.

deleted text begin

(e)
deleted text end
new text begin
(g)
new text end
Within 30 days of the date an application is received, the commissioner may

require additional information or submissions from an applicant and may obtain any

document or information that is reasonably necessary to verify the information contained

in the application. Within 90 days after the date a completed application is received, the

commissioner must review the application and issue a license if the applicant is deemed

qualified under this section. The commissioner may issue a license subject to restrictions

or limitations. If the commissioner determines the applicant is not qualified, the commissioner

must notify the applicant and must specify the reason for the denial.

deleted text begin

(f)
deleted text end
new text begin
(h)
new text end
A person is deemed to hold a license to sell scrap metal copper if the person holds

one of the following:

(1) a license to perform work pursuant to chapter 326B or section
103I.501
;

(2) a document, certificate, or card of competency issued by a municipality to perform

work in a given trade or craft in the building trades. The document, certificate, or card must

state that the individual is authorized to sell scrap metal copper. This clause is effective

January 1, 2025; or

(3) a Section 608 Technician Certification issued by the United States Environmental

Protection Agency.

deleted text begin

(g)
deleted text end
new text begin
(i)
new text end
A license issued under this subdivision is valid for one year. To renew a license,

an applicant must submit a completed renewal application on a form prescribed by the

commissioner and a renewal fee of $250. The commissioner may request that a renewal

applicant submit additional information to clarify any new information presented in the

renewal application. A renewal application submitted after the renewal deadline must be

accompanied by a nonrefundable late fee of $500.

deleted text begin

(h)
deleted text end
new text begin
(j)
new text end
The commissioner may deny a license renewal under this subdivision if:

(1) the commissioner determines that the applicant is in violation of or noncompliant

with federal or state law; or

(2) the applicant fails to timely submit a renewal application and the information required

under this subdivision.

deleted text begin

(i)
deleted text end
new text begin
(k)
new text end
In lieu of denying a renewal application under paragraph (g), the commissioner

may permit the applicant to submit to the commissioner a corrective action plan to cure or

correct deficiencies.

deleted text begin

(j)
deleted text end
new text begin
(l)
new text end
The commissioner may suspend, revoke, or place on probation a license issued

under this subdivision if:

(1) the applicant engages in fraudulent activity that violates state or federal law;

(2) the commissioner receives consumer complaints that justify an action under this

subdivision to protect the safety and interests of consumers;

(3) the applicant fails to pay an application license or renewal fee; or

(4) the applicant fails to comply with a requirement established in this subdivision.

deleted text begin

(k)
deleted text end
new text begin
(m)
new text end
This subdivision does not apply to transfers by or to an auctioneer who is in

compliance with chapter 330 and acting in the person's official role as an auctioneer to

facilitate or conduct an auction of scrap metal.

deleted text begin

(l)
deleted text end
new text begin
(n)
new text end
The commissioner must enforce this subdivision under chapter 45.

Sec. 57.

Minnesota Statutes 2024, section 332.32, is amended to read:

332.32 EXCLUSIONS.

(a) The term "collection agency" does not include banks when collecting accounts owed

to the banks and when the bank will sustain any loss arising from uncollectible accounts,

abstract companies doing an escrow business, real estate brokers, public officers, persons

acting under order of a court, lawyers, trust companies, insurance companies, credit unions,

savings associations, loan or finance companies unless they are engaged in asserting,

enforcing or prosecuting unsecured claims which have been purchased from any person,

firm, or association when there is recourse to the seller for all or part of the claim if the

claim is not collected.

(b) The term "collection agency"
deleted text begin
shall
deleted text end
new text begin
does
new text end
not include a trade association performing

services authorized by section
604.15, subdivision 4a
, but the trade association in performing

the services may not engage in any conduct that would be prohibited for a collection agency

under section
332.37
.

new text begin

(c) The term "collection agency" does not include a residential mortgage servicer licensed

under chapter 58 or a student loan servicer licensed under chapter 58B if the residential

mortgage servicer or student loan servicer is engaging in activities subject to licensure under

chapter 58 or 58B, as applicable.

new text end

Sec. 58.

Minnesota Statutes 2024, section 332.52, subdivision 3, is amended to read:

Subd. 3.

Credit services organization.

(a) "Credit services organization" means any

person that, with respect to the extension of credit by others, sells, provides, performs, or

represents that the person will sell, provide, or perform, in return for the payment of money

or other valuable consideration, any of the following services:

(1) improve a buyer's credit record, history, or rating;

(2) obtain an extension of credit for a buyer; or

(3) provide advice or assistance to a buyer with regard to either clause (1) or (2).

(b) "Credit services organization" does not include:

(1) any person authorized to make loans or extensions of credit under the laws of this

state or the United States, if the person is subject to regulation and supervision by this state

or the United States or a lender approved by the United States Secretary of Housing and

Urban Development for participation in any mortgage insurance program under the National

Housing Act, United States Code, title 12, section 1701 et seq.;

(2) any bank, savings bank, or savings and loan institution whose deposits or accounts

are eligible for insurance by the Federal Deposit Insurance Corporation or a subsidiary of

the bank, savings bank, or savings and loan institution;

(3) any credit union, federal credit union, or out-of-state credit union doing business in

this state;

(4) any nonprofit organization exempt from taxation under section 501(c)(3) of the

Internal Revenue Code of 1986, as amended through December 31, 1990;

(5) any person
deleted text begin
licensed as a prorating agency
deleted text end
new text begin
registered as a debt management services

provider or debt settlement services provider
new text end
under the laws of this state
new text begin
,
new text end
if the person is

acting within the course and scope of
deleted text begin
that license
deleted text end
new text begin
the applicable registration
new text end
;

(6) any person licensed as a real estate broker by this state if the person is acting within

the course and scope of that license;

(7) any person licensed as a collection agency under the laws of this state if the person

is acting within the course and scope of that license;

(8) any person licensed to practice law in this state if the person renders services within

the course and scope of practice as an attorney;

(9) any broker-dealer registered with the Securities and Exchange Commission or the

Commodity Futures Trading Commission if the broker-dealer is acting within the course

and scope of that regulation; or

(10) any consumer reporting agency as defined in the federal Fair Credit Reporting Act,

United States Code, title 15, sections 1681 to 1681t, as amended through December 31,

1990.

Sec. 59.

Minnesota Statutes 2024, section 332A.04, subdivision 1, is amended to read:

Subdivision 1.

Form.

Application for registration to operate as a debt management

services provider in this state must be made in writing to the commissioner, under oath, in

the form prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if

applicable, email address, of the applicant;

(3) identification of the trust account required under section
332A.13
;

(4) consent to the jurisdiction of the courts of this state;

(5) the name and address of the registered agent authorized to accept service of process

on behalf of the applicant or appointment of the commissioner as the applicant's agent for

purposes of accepting service of process;

(6) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found

civilly liable for an offense involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any

other similar offense or violation, or any violation of a federal or state law or regulation in

connection with activities relating to the rendition of debt management services or involving

any consumer fraud, false advertising, deceptive trade practices, or similar consumer

protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative

actions, or investigations by any government agency against the applicant or any officer,

director, manager, or shareholder owning more than five percent interest in the applicant,

unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of

having defaulted in the payment of money collected for others, including the discharge of

debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt management services

in any other state has ever been revoked or suspended;

(7) a copy of the applicant's standard debt management services agreement that the

applicant intends to execute with debtors;
new text begin
and
new text end

deleted text begin

(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt

prorater immediately before August 1, 2007; and

deleted text end

deleted text begin

(9)
deleted text end
new text begin
(8)
new text end
any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of

this subdivision.

Sec. 60.

Minnesota Statutes 2024, section 332B.04, subdivision 1, is amended to read:

Subdivision 1.

Form.

Application for registration to operate as a debt settlement services

provider in this state must be made in writing to the commissioner, under oath, in the form

prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if

applicable, email address of the applicant;

(3) consent to the jurisdiction of the courts of this state;

(4) the name and address of the registered agent authorized to accept service of process

on behalf of the applicant or appointment of the commissioner as the applicant's agent for

purposes of accepting service of process;

(5) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found

civilly liable for an offense involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any

other similar offense or violation, or any violation of a federal or state law or regulation in

connection with activities relating to the rendition of debt settlement services or involving

any consumer fraud, false advertising, deceptive trade practices, or similar consumer

protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative

actions, or investigations by any government agency against the applicant or any officer,

director, manager, or shareholder owning more than five percent interest in the applicant,

unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of

having defaulted in the payment of money collected for others, including the discharge of

debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt settlement services in

any other state has ever been revoked or suspended;

(6) a copy of the applicant's standard debt settlement services agreement that the applicant

intends to execute with debtors;
new text begin
and
new text end

deleted text begin

(7) proof of accreditation, unless the applicant submits an affidavit attesting that the

applicant does not provide credit counseling services; and

deleted text end

deleted text begin

(8)
deleted text end
new text begin
(7)
new text end
any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of

this subdivision.

Sec. 61.

Laws 2026, chapter 72, section 1, subdivision 5, is amended to read:

Subd. 5.

Penalties.

(a) The attorney general may enforce this section under section
8.31
.

In addition to other remedies or penalties, a person who violates this section is subject to a

civil penalty not to exceed $500,000 for each unlawful access, download, or use under

subdivision 2.

(b) Notwithstanding any contrary provision in law, including but not limited to section

16A.151
, any civil penalty recovered under this subdivision must be deposited into the
deleted text begin

general fund. On July 1 each year, the accumulated balance of civil penalties collected in

the previous year is appropriated to the commissioner of public safety for the Office of

Justice Programs to provide grants to organizations to provide direct services and advocacy

for victims of sexual assault, general crime, domestic violence, and child abuse. Funding

must support the direct needs of organizations serving victims of crime by providing:
deleted text end

deleted text begin

(1) direct client assistance to crime victims;

deleted text end

deleted text begin

(2) competitive wages for direct service staff;

deleted text end

deleted text begin

(3) hotel stays and other housing-related supports and services;

deleted text end

deleted text begin

(4) culturally responsive programming;

deleted text end

deleted text begin

(5) prevention programming, including domestic abuse transformation and restorative

justice programming; and

deleted text end

deleted text begin

(6) for other needs of organizations and crime victim survivors.

deleted text end

deleted text begin

Services funded must include services for victims of crime in underserved communities

most impacted by violence and reflect the ethnic, racial, economic, cultural, and geographic

diversity of the state. Up to five percent of the appropriation is available for grant

administration
deleted text end
new text begin
victims of crime account under Minnesota Statutes, section 299A.708
new text end
.

Sec. 62.
new text begin
EFFECTIVE DATE MODIFICATION FOR LAWS 2026, CHAPTER 48.
new text end

new text begin

Laws 2026, chapter 48, sections 1, 2, and 5, are effective retroactively from April 22,

2026.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 63.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 56.08; 332A.02, subdivision 2; and 332B.02,

subdivision 2,

new text end

new text begin

are repealed.

new text end

ARTICLE 2

SECURITIES

Section 1.

Minnesota Statutes 2024, section 80A.50, is amended to read:

80A.50 SECTION 302; FEDERAL COVERED SECURITIES; SMALL

CORPORATE OFFERING REGISTRATION.

(a)
Federal covered securities.

(1)
Required filing of records.
With respect to a federal covered security, as defined

in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. Section 77r(b)(2)), that is not

otherwise exempt under sections 80A.45 through 80A.47, a rule adopted or order issued

under this chapter may require the filing of any or all of the following records:

(A) before the initial offer of a federal covered security in this state, all records that are

part of a federal registration statement filed with the Securities and Exchange Commission

under the Securities Act of 1933 and a consent to service of process complying with section

80A.88 signed by the issuer;

(B) after the initial offer of the federal covered security in this state, all records that are

part of an amendment to a federal registration statement filed with the Securities and

Exchange Commission under the Securities Act of 1933; and

(C) to the extent necessary or appropriate to compute fees, a report of the value of the

federal covered securities sold or offered to persons present in this state, if the sales data

are not included in records filed with the Securities and Exchange Commission.

(2)
Notice filing effectiveness and renewal.
A notice filing under subsection (a) is

effective for one year commencing on the later of the notice filing or the effectiveness of

the offering filed with the Securities and Exchange Commission. On or before expiration,

the issuer may renew a notice filing by filing a copy of those records filed by the issuer with

the Securities and Exchange Commission that are required by rule or order under this chapter

to be filed. A previously filed consent to service of process complying with section 80A.88

may be incorporated by reference in a renewal. A renewed notice filing becomes effective

upon the expiration of the filing being renewed.

(3)
Notice filings for federal covered securities under section 18(b)(4)(D).
With

respect to a security that is a federal covered security under Section 18(b)(4)(D) of the

Securities Act of 1933 (15 U.S.C. Section 77r(b)(4)(D)), a rule under this chapter may

require a notice filing by or on behalf of an issuer to include a copy of Form D, including

the Appendix, as promulgated by the Securities and Exchange Commission, and a consent

to service of process complying with section 80A.88 signed by the issuer not later than 15

days after the first sale of the federal covered security in this state.

(4)
Stop orders.
Except with respect to a federal security under Section 18(b)(1) of the

Securities Act of 1933 (15 U.S.C. Section 77r(b)(1)), if the administrator finds that there is

a failure to comply with a notice or fee requirement of this section, the administrator may

issue a stop order suspending the offer and sale of a federal covered security in this state.

If the deficiency is corrected, the stop order is void as of the time of its issuance and no

penalty may be imposed by the administrator.

(b)
Small corporation offering registration.

(1)
Registration required.
A security meeting the conditions set forth in this section

may be registered as set forth in this section.

(2)
Availability.
Registration under this section is available only to the issuer of securities

and not to an affiliate of the issuer or to any other person for resale of the issuer's securities.

The issuer must be organized under the laws of one of the states or possessions of the United

States. The securities offered must be exempt from registration under the Securities Act of

1933 pursuant to Rule 504 of Regulation D (15 U.S.C. Section 77c).

(3)
Disqualification.
Registration under this section is not available to any of the

following issuers:

(A) an issuer subject to the reporting requirements of Section 13 or 15(d) of the Securities

Exchange Act of 1934;

(B) an investment company;

(C) a development stage company that either has no specific business plan or purpose

or has indicated that its business plan is to engage in a merger or acquisition with an

unidentified company or companies or other entity or person;

(D) an issuer if the issuer or any of its predecessors, officers, directors, governors,

partners, ten percent stock or equity holders, promoters, or any selling agents of the securities

to be offered, or any officer, director, governor, or partner of the selling agent:

(i) has filed a registration statement that is the subject of a currently effective registration

stop order entered under a federal or state securities law within five years before the filing

of the small corporate offering registration application;

(ii) has been convicted within five years before the filing of the small corporate offering

registration application of a felony or misdemeanor in connection with the offer, purchase,

or sale of a security or a felony involving fraud or deceit, including, but not limited to,

forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to

defraud;

(iii) is currently subject to a state administrative enforcement order or judgment entered

by a state securities administrator or the Securities and Exchange Commission within five

years before the filing of the small corporate offering registration application, or is subject

to a federal or state administrative enforcement order or judgment in which fraud or deceit,

including, but not limited to, making untrue statements of material facts or omitting to state

material facts, was found and the order or judgment was entered within five years before

the filing of the small corporate offering registration application;

(iv) is currently subject to an order, judgment, or decree of a court of competent

jurisdiction temporarily restraining or enjoining, or is subject to an order, judgment, or

decree of a court of competent jurisdiction permanently restraining or enjoining the party

from engaging in or continuing any conduct or practice in connection with the purchase or

sale of any security or involving the making of a false filing with a state or with the Securities

and Exchange Commission entered within five years before the filing of the small corporate

offering registration application; or

(v) is subject to a state's administrative enforcement order, or judgment that prohibits,

denies, or revokes the use of an exemption for registration in connection with the offer,

purchase, or sale of securities,

(I) except that clauses (i) to (iv) do not apply if the person subject to the disqualification

is duly licensed or registered to conduct securities-related business in the state in which the

administrative order or judgment was entered against the person or if the dealer employing

the party is licensed or registered in this state and the form BD filed in this state discloses

the order, conviction, judgment, or decree relating to the person, and

(II) except that the disqualification under this subdivision is automatically waived if the

state securities administrator or federal agency that created the basis for disqualification

determines upon a showing of good cause that it is not necessary under the circumstances

to deny the registration.

(4)
Filing and effectiveness of registration statement.
A small corporate offering

registration statement must be filed with the administrator. If no stop order is in effect and

no proceeding is pending under section 80A.54, such registration statement shall become

effective automatically at the close of business on the 20th day after filing of the registration

statement or the last amendment of the registration statement or at such earlier time as the

administrator may designate by rule or order. For the purposes of a nonissuer transaction,

other than by an affiliate of the issuer, all outstanding securities of the same class identified

in the small corporate offering registration statement as a security registered under this

chapter are considered to be registered while the small corporate offering registration

statement is effective. A small corporate offering registration statement is effective for one

year after its effective date or for any longer period designated in an order under this chapter.

A small corporate offering registration statement may be withdrawn only with the approval

of the administrator.

(5)
Contents of registration statement.
A small corporate offering registration statement

under this section shall be on Form U-7, including exhibits required by the instructions

thereto, as adopted by the North American Securities Administrators Association, or such

alternative form as may be designated by the administrator by rule or order and must include:

(A) a consent to service of process complying with section 80A.88;

(B) a statement of the type and amount of securities to be offered and the amount of

securities to be offered in this state;

(C) a specimen or copy of the security being registered, unless the security is

uncertificated, a copy of the issuer's articles of incorporation and bylaws or their substantial

equivalents in effect, and a copy of any indenture or other instrument covering the security

to be registered;

(D) a signed or conformed copy of an opinion of counsel concerning the legality of the

securities being registered which states whether the securities, when sold, will be validly

issued, fully paid, and nonassessable and, if debt securities, binding obligations of the issuer;

(E) the states (i) in which the securities are proposed to be offered; (ii) in which a

registration statement or similar filing has been made in connection with the offering

including information as to effectiveness of each such filing; and (iii) in which a stop order

or similar proceeding has been entered or in which proceedings or actions seeking such an

order are pending;

(F) a copy of the offering document proposed to be delivered to offerees; and

(G) a copy of any other pamphlet, circular, form letter, advertisement, or other sales

literature intended as of the effective date to be used in connection with the offering and

any solicitation of interest used in compliance with section 80A.46(17)(B).

(6)
Copy to purchaser.
A copy of the offering document as filed with the administrator

must be delivered to each person purchasing the securities prior to sale of the securities to

such person.

(c)
Offering limit.
Offers and sales of securities under a small corporate offering

registration as set forth in this section are allowed up to the limit prescribed by Code of

Federal Regulations, title 17, part 230.504 (b)(2), as amended.

(d)
Regulation A - Tier 2 filing requirements.

(1)
Initial filing.
An issuer planning to offer and sell securities in Minnesota in an

offering exempt under Tier 2 of federal Regulation A must, at least 21 calendar days before

the date of the initial sale of securities in Minnesota, submit to the administrator:

(A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the

documents filed with the Securities Exchange Commission; and

(B) a consent to service of process on Form U-2, if consent to service of process is not

provided in the Regulation A - Tier 2 offering notice filing form.

The initial notice filing made in Minnesota is effective for 12 months after the date the

filing is made.

(2)
Renewal.
For each additional 12-month period in which the same offering is

continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew

the notice filing by filing (i) the Regulation A - Tier 2 offering notice filing form marked

"renewal," or (ii) a cover letter or other document requesting renewal. The renewal filing

must be made on or before the date notice filing expires.

(3)
Amendment.
An issuer may increase the amount of securities offered in Minnesota

by submitting a Regulation A - Tier 2 offering notice filing form or other document

describing the transaction.

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(e)
Notice filing requirement for federal crowdfunding offerings.
This paragraph

applies to offerings made under Regulation Crowdfunding, Code of Federal Regulations,

title 17, part 227, and sections 4(a)(6) and 18(b)(4)(C) of the Securities Act of 1933, United

States Code, title 15, sections 77d(A)(6) and 77r(b)(4)(C).

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(1)
Initial filing.
An issuer that (i) offers and sells securities in Minnesota in an offering

exempt under federal Regulation Crowdfunding, and (ii) has a principal place of business

in Minnesota or sells at least 50 percent of the offering's aggregate amount to Minnesota

residents, must file with the administrator:

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(A) a completed Uniform Notice of Federal Crowdfunding Offering form or copies of

all documents filed with the Securities and Exchange Commission; and

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(B) if the issuer is not filing on the Uniform Notice of Federal Crowdfunding Offering

form, consent to service of process on Form U-2.

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If the issuer's principal place of business is in Minnesota, the initial filing must be submitted

with the administrator when the issuer makes the issuer's initial Form C filing concerning

the offering with the Securities and Exchange Commission. If the issuer's principal place

of business is not in Minnesota but Minnesota residents have purchased at least 50 percent

of the aggregate amount of the offering, the filing must be submitted when the issuer becomes

aware that the aggregate purchases made by Minnesota residents meets the threshold, but

no later than 30 days after the date the offering is complete. The initial notice filing is

effective for a 12-month period beginning on the date the initial filing is submitted to the

administrator.

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(2)
Renewal.
For each additional 12-month period in which a single offering is continued,

an issuer conducting an offering under federal Regulation Crowdfunding may renew the

issuer's notice filing by filing with the administrator on or before the date the current notice

filing expires:

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(A) a completed Uniform Notice of Federal Crowdfunding Offering form that is marked

"renewal"; or

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(B) a cover letter or other document requesting renewal

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.

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(3)
Amendment.
An issuer may increase the amount of securities offered in Minnesota

by submitting (i) a completed Uniform Notice of Federal Crowdfunding Offering form that

is marked "amendment," or (ii) another document that describes the modified transaction.

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Sec. 2.

Minnesota Statutes 2025 Supplement, section 80A.66, is amended to read:

80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.

(a)
Financial requirements.
Subject to Section 15(h) of the Securities Exchange Act

of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940

(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish

minimum financial requirements for broker-dealers registered or required to be registered

under this chapter and investment advisers registered or required to be registered under this

chapter.

(b)
Financial reports.
Subject to Section 15(h) of the Securities Exchange Act of 1934

(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15

U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this

chapter and an investment adviser registered or required to be registered under this chapter

shall file such financial reports as are required by a rule adopted or order issued under this

chapter. If the information contained in a record filed under this subsection is or becomes

inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting

amendment.

(c)
Record keeping.
Subject to Section 15(h) of the Securities Exchange Act of 1934

(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15

U.S.C. Section 80b-22):

(1) a broker-dealer registered or required to be registered under this chapter and an

investment adviser registered or required to be registered under this chapter shall make and

maintain the accounts, correspondence, memoranda, papers, books, and other records

required by rule adopted or order issued under this chapter;

(2) broker-dealer records required to be maintained under paragraph (1) may be

maintained in any form of data storage acceptable under Section 17(a) of the Securities

Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the

administrator;
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and
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(3) a broker-dealer must establish and maintain: (i) a set of written supervisory procedures

that reasonably prevent and detect violations of chapter 80A; Minnesota Rules, chapter

2876; or related orders issued by the commissioner; and (ii) a system to apply the procedures

established under this clause. The procedures must designate by name or title a number of

supervisory employees that is reasonable relative to the number of the broker-dealer's

registered agents, offices, and transactions in Minnesota. A copy of the written procedures

and the system to apply the procedures must be kept and maintained at each branch office

affiliated with the broker-dealer. A broker-dealer may use electronic media in accordance

with FINRA Rule 3110.11, or any successor federal law, to satisfy its obligation under this

paragraph; and

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(3)
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(4)
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investment adviser records required to be maintained under paragraph (d)(1) may

be maintained in any form of data storage required by rule adopted or order issued under

this chapter.

(d)
Records and reports of private funds.

(1)
In general.
An investment adviser to a private fund shall maintain such records of,

and file with the administrator such reports and amendments thereto, that an exempt reporting

adviser is required to file with the Securities and Exchange Commission pursuant to SEC

Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.

(2)
Treatment of records.
The records and reports of any private fund to which an

investment adviser provides investment advice shall be deemed to be the records and reports

of the investment adviser.

(3)
Required information.
The records and reports required to be maintained by an

investment adviser, which are subject to inspection by a representative of the administrator

at any time, shall include for each private fund advised by the investment adviser, a

description of:

(A) the amount of assets under management;

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

management;

(C) counterparty credit risk exposure;

(D) trading and investment positions;

(E) valuation policies and practices of the fund;

(F) types of assets held;

(G) side arrangements or side letters, whereby certain investors in a fund obtain more

favorable rights or entitlements than other investors;

(H) trading practices; and

(I) such other information as the administrator determines is necessary and appropriate

in the public interest and for the protection of investors, which may include the establishment

of different reporting requirements for different classes of fund advisers, based on the type

or size of the private fund being advised.

(4)
Filing of records.
A rule or order under this chapter may require each investment

adviser to a private fund to file reports containing such information as the administrator

deems necessary and appropriate in the public interest and for the protection of investors.

(e)
Audits or inspections.
The records of a broker-dealer registered or required to be

registered under this chapter and of an investment adviser registered or required to be

registered under this chapter, including the records of a private fund described in paragraph

(d) and the records of investment advisers to private funds, are subject to such reasonable

periodic, special, or other audits or inspections by a representative of the administrator,

within or without this state, as the administrator considers necessary or appropriate in the

public interest and for the protection of investors. An audit or inspection may be made at

any time and without prior notice. The administrator may copy, and remove for audit or

inspection copies of, all records the administrator reasonably considers necessary or

appropriate to conduct the audit or inspection. The administrator may assess a reasonable

charge for conducting an audit or inspection under this subsection.

(f)
Custody and discretionary authority bond or insurance.
Subject to Section 15(h)

of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the

Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued

under this chapter may require a broker-dealer or investment adviser that has custody of or

discretionary authority over funds or securities of a customer or client to obtain insurance

or post a bond or other satisfactory form of security in an amount of at least $25,000, but

not to exceed $100,000. The administrator may determine the requirements of the insurance,

bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form

of security may not be required of a broker-dealer registered under this chapter whose net

capital exceeds, or of an investment adviser registered under this chapter whose minimum

financial requirements exceed, the amounts required by rule or order under this chapter.

The insurance, bond, or other satisfactory form of security must permit an action by a person

to enforce any liability on the insurance, bond, or other satisfactory form of security if

instituted within the time limitations in section 80A.76(j)(2).

(g)
Requirements for custody.
Subject to Section 15(h) of the Securities Exchange Act

of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940

(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a

customer except under the supervision of a broker-dealer and an investment adviser

representative may not have custody of funds or securities of a client except under the

supervision of an investment adviser or a federal covered investment adviser. A rule adopted

or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer

regarding custody of funds or securities of a customer and on an investment adviser regarding

custody of securities or funds of a client.

(h)
Investment adviser brochure rule.
With respect to an investment adviser registered

or required to be registered under this chapter, a rule adopted or order issued under this

chapter may require that information or other record be furnished or disseminated to clients

or prospective clients in this state as necessary or appropriate in the public interest and for

the protection of investors and advisory clients.

(i)
Continuing education.
A rule adopted or order issued under this chapter may require

an individual registered under section 80A.57 or
80A.58
to participate in a continuing

education program approved by the Securities and Exchange Commission and administered

by a self-regulatory organization, the North American Securities Administrators Association,

or the commissioner.

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(j)
Business continuity and succession plan.
An investment adviser registered or

required to be registered under this chapter must establish, maintain, and enforce written

policies and procedures relating to business continuity and succession planning. At a

minimum, the policies and procedures under this paragraph must provide:

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(1) a means to protect, back up, and recover books and records;

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(2) an alternate method to provide notice to customers; key personnel; employees;

vendors; service providers, including third-party custodians; and regulators, regarding issues

pertaining to the investment adviser's business operations, including but not limited to

significant business interruption, the death or unavailability of key personnel, other disruption

to business activities, or ceasing business operations;

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(3) a plan to relocate the office space for a principal place of business that is subject to

a temporary or permanent loss;

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(4) a plan to assign duties to qualified responsible persons if key personnel die or are

otherwise unavailable; and

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(5) a plan to otherwise minimize service disruption and client harm that might result

from sudden and significant business interruption.

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(k)
Physical security and cybersecurity policies and procedures.
An investment

adviser registered or required to be registered under this chapter must establish, implement,

update, and enforce written physical security and cybersecurity policies and procedures that

are designed to ensure the confidentiality, integrity, and availability of physical and electronic

records and information. The policies and procedures must be tailored to the investment

adviser's business model and must take into account the investment adviser's business size,

type of service provided, and number of locations.

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(1) The physical security and cybersecurity policies and procedures must:

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(A) protect against reasonably anticipated threats or hazards to the security or integrity

of client records and information;

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(B) ensure that the investment adviser protects confidential client records and information;

and

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(C) protect client records and information that, if released, might result in harm or

inconvenience to the client.

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(2) At a minimum, the physical security and cybersecurity policies and procedures must

develop and implement:

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(A) an organizational understanding to manage information security risk with respect

to systems, assets, data, and capabilities;

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(B) safeguards to ensure delivery of critical infrastructure services;

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(C) actions and tools to identify when an information security event occurs;

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(D) actions to take when an information security event is detected; and

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(E) plans for security and system resilience, and to restore capabilities or services that

are impaired due to an information security event.

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(3) At the time a client engages an investment adviser and on an annual basis thereafter,

an investment adviser must deliver to the client a privacy policy that is reasonably designed

to assist the client understand how the investment adviser collects and shares, to the extent

permitted by state and federal law, nonpublic personal information. If information in the

policy becomes materially inaccurate, the investment adviser must promptly update and

deliver an amended privacy policy to the client.

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(l)
Written confirmation.
A broker-dealer must promptly provide to the customer a

written confirmation at or before completing a transaction in accordance with FINRA Rule

2232, or any successor federal law. The confirmation must:

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(1) describe the security purchased or sold, the date of the transaction, the price of the

security purchased or sold, and any commission charged;

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(2) indicate whether the broker-dealer acted for the broker-dealer's account, as an agent

for a customer, as an agent for another person, or as an agent for both a customer and another

person;

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(3) if the broker-dealer is acting as an agent for a customer, include (i) the name of the

person who purchased the security, (ii) the name of the person who sold the security, or (iii)

a statement that the information in item (i) or (ii) is available to a customer on request if

the broker-dealer knows the information or is able to ascertain the information with

reasonable diligence;

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(4) indicate whether the transaction was unsolicited; and

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(5) indicate the name of the agent that executed the transaction.

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A broker-dealer that complies with Securities and Exchange Commission Rule 10b-10,

Code of Federal Regulations, title 17, part 240.10b-10, or article III, section 12, of the

Financial Industry Regulatory Authority Rules of Fair Practice, complies with this paragraph.

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(m)
Conditions; stipulations; provisions.
A broker-dealer is prohibited from entering

into a contract with a customer if the contract contains a condition, stipulation, or provision

that binds the customer to waive rights under chapter 80A; Minnesota Rules, chapter 2876;

or an order issued by the commissioner. A condition, stipulation, or provision included in

a contract subject to this paragraph is void.

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(n)
Principal office; employment.
A broker-dealer whose principal office is located in

Minnesota must have at least one registered person employed on a full-time basis at the

principal office located in Minnesota. This paragraph does not apply to a broker-dealer

engaged solely in offering and selling:

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(1) interests in a direct participation program; or

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(2) securities issued by open-end investment companies, face amount certificate

companies, or unit investment trusts registered under the Investment Company Act of 1940,

United States Code, title 15, sections 80a-1 to 80a-64.

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Sec. 3.

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[80A.691] BROKER-DEALERS; AGENTS; DISHONEST OR UNETHICAL

BUSINESS PRACTICES.

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Subdivision 1.

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Broker-dealers; standards and principles.

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A broker-dealer must observe

high standards of commercial honor and just and equitable principles of trade when

conducting the broker-dealer's business. An act or practice that is contrary to the standards

constitutes grounds for the administrator to deny, suspend, or revoke the broker-dealer's

registration or to take other action authorized by statute. For purposes of this subdivision,

an act or practice that is contrary to the standards includes:

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(1) engaging in a pattern of unreasonable and unjustifiable delays with respect to: (i)

delivering securities purchased by a customer; or (ii) upon request, paying free credit balances

reflecting a customer's completed transactions;

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(2) inducing trading in a customer's account that is excessive in size or frequency

considering the account's financial resources and character;

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(3) recommending that a customer purchase, sell, or exchange a security without

reasonable grounds to believe the transaction or recommendation is suitable for the customer,

based on: (i) a reasonable inquiry regarding the customer's investment objectives, financial

situation, and needs; and (ii) other relevant information known by the broker-dealer;

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(4) recommending a security transaction or investment strategy involving securities,

including account recommendations, to a retail customer if the recommendation does not

comply with the obligations set forth in Code of Federal Regulations, title 17, section

240.15l-1;

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(5) executing a transaction on behalf of a customer without the customer's authorization;

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(6) exercising discretionary power to effect a transaction for a customer's account without

first obtaining written discretionary authority from the customer, unless the discretionary

power relates solely to the time the order is executed or the order's price;

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(7) executing a transaction in a margin account without securing from the customer a

properly executed written margin agreement promptly after the account's initial transaction;

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(8) failing to segregate customers' free securities or securities held in safekeeping;

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(9) hypothecating a customer's securities without having a lien on the customer's

securities, unless the broker-dealer secures the customer's properly executed written consent

promptly after the initial transaction, except as permitted by Securities and Exchange

Commission regulations;

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(10) entering into a transaction with or for a customer at a price that is not reasonably

related to the security's current market price, or receiving an unreasonable commission or

profit;

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(11) failing to furnish to a customer purchasing securities in an offering, no later than

the due date for the transaction's confirmation: (i) a final prospectus; or (ii) a preliminary

prospectus and an additional document that, when combined with the preliminary prospectus,

includes all of the information included in the final prospectus;

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(12) charging an unreasonable or inequitable fee for services performed, including: (i)

miscellaneous services that include but are not limited to collecting money due for principal,

dividends or interest, exchanging or transferring securities, appraisals, safekeeping, or

maintaining custody of securities; and (ii) other services related to the broker-dealer's

securities business;

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(13) offering to buy or sell a security at a stated price if the broker-dealer is not prepared

to purchase or sell at the stated price and under the stated conditions at the time the offer

to buy or sell is made;

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(14) representing that a security is being offered to a customer "at the market" or at a

price relevant to the market price, unless the broker-dealer knows or has reasonable grounds

to believe a market for the security exists other than the market made, created, or controlled

by: (i) the broker-dealer; (ii) a person for whom the broker-dealer is acting or with whom

the broker-dealer is associated with respect to the security's distribution; or (iii) a person

controlled by, controlling, or under common control with the broker-dealer;

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(15) effecting a transaction in, or inducing the purchase or sale of, a security using a

manipulative, deceptive, or fraudulent device, practice, plan, program, design, or contrivance,

which includes but is not limited to:

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(i) effecting a transaction in a security that involves no change in the security's beneficial

ownership;

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(ii) entering an order to purchase or sell a security with the knowledge that at least one

other order for the same security that is substantially the same size, entered at substantially

the same time, and for substantially the same price as the order has been or will be entered

by or for the same or a different party to create (A) a false or misleading appearance of

active trading in the security, or (B) a false or misleading appearance with respect to the

market for the security. This item does not prohibit a broker-dealer from entering bona fide

agency cross transactions for the broker-dealer's customers; or

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(iii) effecting, alone or with another person, a series of transactions in a security that

creates actual or apparent active trading in the security, or raises or reduces the price of the

security, to induce others to purchase or sell the security;

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(16) guaranteeing a customer against loss in: (i) a securities account the broker-dealer

carries for the customer; (ii) a securities transaction effected by the broker-dealer; or (iii) a

securities transaction effected by the broker-dealer with or for the customer;

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(17) publishing or circulating, or causing to be published or circulated, a notice, circular,

advertisement, newspaper article, investment service, or communication of any kind that

purports to: (i) report a transaction as a purchase or sale of a security, unless the broker-dealer

believes that the transaction was a bona fide purchase or sale of the security; or (ii) quote

the bid price or asked price for a security, unless the broker-dealer believes the quote

represents a bona fide bid for or offer of the security;

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(18) using an advertising or sales presentation in a manner that is deceptive or misleading,

including but not limited to distributing: (i) nonfactual data, material, or a presentation based

on conjecture, unfounded claims, or unrealistic claims; or (ii) assertions in a brochure, flyer,

or display using words, pictures, graphs, or other representations that are designed to

supplement, detract from, supersede, or defeat a prospectus' or disclosure's purpose or effect;

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(19) failing to disclose to a customer, before entering into a contract with or for a customer

to purchase or sell a security, that the broker-dealer is controlled by, controlling, affiliated

with, or under common control with the security's issuer. If a disclosure under this clause

is not made in writing, the disclosure must be supplemented by giving or sending written

disclosure before or at the time the transaction is completed;

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(20) failing to make a bona fide public offering of all of the securities allotted to a

broker-dealer for distribution, whether the securities are acquired as an underwriter, as a

selling group member, or from a member participating in the distribution as an underwriter

or selling group member;

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(21) failing or refusing to: (i) furnish a customer, upon reasonable request, information

the customer is entitled to; or (ii) respond to a formal written request or complaint;

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(22) failing to pay and fully satisfy a final judgment or arbitration award resulting from

an arbitration or court proceeding relating to an investment and initiated by the customer,

unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an

alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies

with the terms of the alternative payment arrangement;

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(23) attempting to avoid paying a final judgment or arbitration award resulting from an

arbitration or court proceeding relating to an investment and initiated by the customer,

unless: (i) the customer and broker-dealer, or broker-dealer's agent, agree in writing to an

alternative payment arrangement; and (ii) the broker-dealer or broker-dealer's agent complies

with the terms of the alternative payment arrangement;

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(24) failing to pay and fully satisfy a fine, civil penalty, order of restitution, order of

disgorgement, or similar monetary payment obligation imposed upon the broker-dealer or

broker-dealer's agent by the Securities and Exchange Commission, a state or provincial

securities or other financial services regulator, or a self-regulatory organization;

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(25) accessing a client's account by using the client's unique identifying information,

including but not limited to the client's username and password;

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(26) in connection with soliciting a sale or purchase of an over-the-counter non-NASDAQ

security, failing to promptly provide the most current prospectus or the most recently filed

periodic report filed under Section 13 of the Securities Exchange Act of 1934, United States

Code, title 15, section 78m, as amended, if the broker-dealer receives a request from a

customer;

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(27) marking an order ticket or confirmation as unsolicited if the transaction is solicited;

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(28) for each month in which activity has occurred in a customer's account and no less

frequently than once every three months regardless of whether customer account activity

has occurred, failing to provide the customer with an account statement that, with respect

to all over-the-counter non-NASDAQ equity securities in the account, contains a value for

each security based on the closing market bid on a date certain. This clause applies only if

the broker-dealer has been a market maker in the security at any time during the month in

which the monthly or quarterly statement is issued; or

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(29) failing to comply with an applicable provision of the Financial Industry Regulatory

Authority conduct rules or an applicable fair practice or ethical standard promulgated by

the Securities and Exchange Commission or a self-regulatory organization approved by the

Securities and Exchange Commission.

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Subd. 2.

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Broker-dealer's agents; standards and principles.

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A broker-dealer's agent

must observe high standards of commercial honor and just and equitable principles of trade

when conducting the broker-dealer's agent's business. An act or practice that is contrary to

the standards constitutes grounds for the administrator to deny, suspend, or revoke the

broker-dealer's agent's registration or to take other action authorized by statute. For purposes

of this subdivision, an act or practice that is contrary to the standards includes:

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(1) lending to or borrowing from a customer money or securities, or acting as a custodian

for a customer's money, securities, or executed stock power, unless otherwise permissible

under FINRA Rule 3240 or any successor federal law;

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(2) effecting securities transactions that are not recorded on the regular books or records

maintained by the broker-dealer the broker-dealer's agent represents, unless the transactions

are authorized in writing by the broker-dealer before executing the transaction or exempt

as subscription-way transactions under Rule 17a-3 of the Securities Exchange Act of 1934

or any successor federal law;

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(3) establishing or maintaining an account that contains fictitious information in order

to execute transactions that are otherwise prohibited;

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(4) sharing directly or indirectly in profits or losses in a customer account without the

written authorization from the customer and the broker-dealer the broker-dealer's agent

represents;

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(5) dividing or otherwise splitting the broker-dealer's agent's commissions, profits, or

other compensation from purchasing or selling securities with a person who is not also

registered as a broker-dealer's agent for the same broker-dealer or for a broker-dealer under

direct or indirect common control or unless otherwise allowed under Securities and Exchange

Commission rules, guidance, or authorization; or

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(6) engaging in the conduct specified under subdivision 1, clause (2), (3), (4), (5), (6),

(7), (10), (11), (15), (16), (17), (18), (22), (23), (24), (25), (26), (27), (28), or (29).

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Subd. 3.

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Conduct specified not exclusive.

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The conduct identified as a violation under

subdivisions 1 and 2 is not exclusive. A broker-dealer or broker-dealer's agent that engages

in other conduct, including but not limited to forgery, embezzlement, nondisclosure,

incomplete disclosure, misstatement of material facts, or manipulative or deceptive practices,

is also subject to denial, suspension, or revocation of registration.

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Sec. 4.

Minnesota Statutes 2024, section 80C.12, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The commissioner, with or without prior notice or hearing,

may issue a cease and desist order and may issue an order denying, suspending or revoking

any registration, amendment or exemption on finding any of the following:

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(a)
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(1)
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that the applicant, registrant or franchisor or any officer, director, agent or

employee thereof or any other person has violated or failed to comply with any provision

of sections
80C.01
to
80C.22
or any rule or order of the commissioner;

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(b)
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(2)
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that the offer, sale, or purchase of the franchise would constitute misrepresentation

to or deceit or fraud upon purchasers thereof, or has worked or tended to work a fraud upon

purchasers or would so operate;

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(c)
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(3)
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that the applicant, registrant or franchisor or any officer, director, agent or

employee thereof or any other person is engaging or about to engage in false, fraudulent or

deceptive practices in connection with the offer and sale of a franchise;

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(d)
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(4)
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that any person identified in a public offering statement has been
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:
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(i)
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convicted

of an offense
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or held liable in a civil action by final judgment
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described in section
80C.04
,
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subdivision 1, paragraph (e),
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clause
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(5)
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(1)
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, has a civil or criminal action pending as described

in section 80C.04, subdivision 1, paragraph (e), clause (5)
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, or is subject to an order
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, or has

had a civil judgment entered against the person as described in section
80C.04
, clause (5),
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described in section 80C.04, subdivision 1, paragraph (e), clauses (2) to (4);
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and
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(ii)
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the

involvement of the person in the business of the applicant or franchisor creates a substantial

risk to prospective franchisees;

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(e)
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(5)
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that the financial condition of the franchisor adversely affects or would adversely

affect the ability of the franchisor to fulfill its obligations under the franchise agreement;

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(f)
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(6)
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that the franchisor's enterprise or method of business includes or would include

activities which are illegal where performed;
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or
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(g)
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(7)
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that the method of sale or proposed method of sale of franchises or the operation

of the business of the franchisor or any term or condition of the franchise agreement or any

practice of the franchisor is or would be unfair or inequitable to franchisees.

ARTICLE 3

HEALTH INSURANCE

Section 1.

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[60A.071] SUBSTANTIAL ENROLLMENT GROWTH; NOTIFICATION.

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Subdivision 1.

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Notice required.

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(a) No later than April 15 each year, an insurance

company that issues health plans, as defined in section 62A.011, and is licensed under this

chapter to offer, sell, or issue a policy of accident and sickness insurance, as defined in

section 62A.01, subdivision 1, or that is a nonprofit health service plan corporation operating

under chapter 62C must notify the commissioner if, for an insurance company or nonprofit

health service plan corporation with at least 25,000 enrollees, the insurance company or

nonprofit health service plan corporation:

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(1) increases the total number of enrollees, as of April 1 in the current calendar year, by

more than 35 percent of the insurance company's or nonprofit health service plan corporation's

total number of enrollees for the immediately preceding calendar year; or

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(2) increases the total number of enrollees in a specific line of business or product by a

percentage that is greater than the percentage of growth threshold established by the

commissioner for the specific line of business or product.

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(b) For purposes of this section, the number of enrollees must be calculated in a manner

consistent with the insurance company or nonprofit health service plan corporation's reported

covered lives in the company's National Association of Insurance Commissioners Annual

Statement.

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Subd. 2.

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Additional information.

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(a) Upon receiving notice under subdivision 1, the

commissioner may request and the insurance company or nonprofit health service plan

corporation must provide additional information regarding the insurance company's or

nonprofit health service plan corporation's financial readiness to serve the increased

enrollment. The additional information requested may include but is not limited to:

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(1) the conditions contributing to the insurance company's or nonprofit health service

plan corporation's enrollment growth;

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(2) a three-year projected statutory balance sheet, income statements, and cash flow

statements for the current year and the subsequent two years;

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(3) the key assumptions impacting the projections and the sensitivity of the projections

to the assumptions; and

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(4) a description of anticipated issues associated with the insurance company's or

nonprofit health service plan corporation's business, including but not limited to (i) assets,

(ii) anticipated business growth and associated surplus strain, (iii) significant change in risk

profile, (iv) mix of business, and (v) reinsurance use, if any, in each case.

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(b) If the information reported under paragraph (a) raises a concern with respect to an

insurance company's or nonprofit health service plan corporation's business on a prospective

basis due to anticipated business growth, including but not limited to anticipated business

growth, strain on surplus, increased exposure to risk, or an imbalanced mix of business, the

commissioner may issue a corrective order specifying corrective actions the commissioner

determines are required. A corrective order issued under this paragraph is subject to review

under chapter 14.

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Sec. 2.

Minnesota Statutes 2024, section 62D.08, is amended by adding a subdivision to

read:

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Subd. 8.

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Information sharing.

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The commissioner of commerce must share nonpublic

data submitted by health maintenance organizations under this section with (1) the

commissioner of health and the commissioner of human services, (2) other state and federal

regulatory agencies, and (3) the National Association of Insurance Commissioners, if the

requesting recipient under clauses (1) to (3) agrees to maintain the data in a manner consistent

with the data's classification under chapter 13. The commissioner of commerce may enter

into agreements governing the sharing and use of information, provided the agreements are

consistent with this subdivision.

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Sec. 3.

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[62D.085] SUBSTANTIAL ENROLLMENT GROWTH; NOTICE.

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Subdivision 1.

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Notice required.

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(a) No later than April 15 each year, a health

maintenance organization that is operating under this chapter and that has at least 25,000

enrollees must notify the commissioner if the health maintenance organization:

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(1) increases the total number of enrollees, as of April 1 in the current calendar year, by

more than 35 percent of the health maintenance organization's total number of enrollees for

the immediately preceding calendar year; or

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(2) increases the total number of enrollees in a specific line of business or product by a

percentage that is greater than the percentage of growth threshold established by the

commissioner for the specific line of business or product.

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(b) For purposes of this section, the number of enrollees must be calculated in a manner

consistent with the health maintenance organization's reported covered lives in the company's

National Association of Insurance Commissioners Annual Statement.

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Subd. 2.

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Additional information.

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(a) Upon receiving notice under subdivision 1, the

commissioner may request and the health maintenance organization must provide additional

information regarding the health maintenance organization's financial readiness to serve

the increased enrollment. The additional information requested may include but is not limited

to:

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(1) the conditions contributing to the health maintenance organization's enrollment

growth;

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(2) a three-year projected statutory balance sheet, income statements, and cash flow

statements for the current year and the subsequent two years;

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(3) the key assumptions impacting the projections and the sensitivity of the projections

to the assumptions; and

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(4) a description of anticipated issues associated with the health maintenance

organization's business, including but not limited to (i) assets, (ii) anticipated business

growth and associated surplus strain, (iii) significant change in risk profile, (iv) mix of

business, and (v) reinsurance use, if any, in each case.

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(b) If the information reported under paragraph (a) raises a concern with respect to a

health maintenance organization's business on a prospective basis due to anticipated business

growth, including but not limited to anticipated business growth, strain on surplus, increased

exposure to risk, or an imbalanced mix of business, the commissioner may issue a corrective

order specifying corrective actions the commissioner determines are required. A corrective

order issued under this paragraph is subject to review under chapter 14.

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Sec. 4.

Minnesota Statutes 2024, section 62J.40, is amended to read:

62J.40 COST CONTAINMENT DATA FROM STATE AGENCIES AND OTHER

GOVERNMENTAL UNITS.

(a) All state departments or agencies that administer one or more health care programs

shall provide to the commissioner of health any additional data on the health care programs

they administer that is requested by the commissioner of health, including data in

unaggregated form, for purposes of developing estimates of spending, setting spending

limits, and monitoring actual spending. The data must be provided at the times and in the

form specified by the commissioner of health.

(b) For purposes of estimating total health care spending as provided in section
62J.301,

subdivision 4
, clause (c), all local governmental units shall provide expenditure data to the

commissioner. The commissioner shall consult with representatives of the affected local

government units in establishing definitions, reporting formats, and reporting time frames.

As much as possible, the data shall be collected in a manner that ensures that the data

collected is consistent with data collected from the private sector and minimizes the reporting

burden to local government.

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(c) A state agency that purchases health care services, provides oversight over health

insurance rates, collects taxes imposed under section 295.52, or regulates health care entities

must provide to the commissioner nonpublic data the commissioner requests to satisfy

statutory duties under sections 62J.301 to 62J.461, 62J.84, 62J.87, 62U.01 to 62U.10, 144.70,

145D.01, and 145D.02, with respect to monitoring the health care market, including but not

limited to consolidation, transaction, corporate structure, utilization, quality, spending

growth, and prescription drug supply chains.

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(d) The commissioner may request unique or custom data sets from a state agency in a

request under paragraph (c). The state agency may charge the commissioner a fee to provide

data sets under paragraph (c) at the same rate the state agency charges another public or

private entity for the same data.

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(e) Data provided to the commissioner under paragraph (c) retains the data's original

classification under chapter 13. Data provided to the commissioner under paragraph (c)

may be included in public reports if the data are aggregated and deidentified.

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Sec. 5.

Minnesota Statutes 2024, section 62K.07, subdivision 2, is amended to read:

Subd. 2.

Prescription drug costs.

(a) Each health carrier that offers a prescription drug

benefit in its individual health plans or small group health plans shall include in the applicable

rate filing required under section
62A.02
the following information about covered prescription

drugs:

(1) the 25 most frequently prescribed drugs in the previous plan year;

(2) the 25 most costly prescription drugs as a portion of the individual health plan's or

small group health plan's total annual expenditures in the previous plan year;

(3) the 25 prescription drugs that have caused the greatest increase in total individual

health plan or small group health plan spending in the previous plan year;

(4) the projected impact of the cost of prescription drugs on premium rates;

(5) if any health plan offered by the health carrier requires enrollees to pay cost-sharing

on any covered prescription drugs including deductibles, co-payments, or coinsurance in

an amount that is greater than the amount the enrollee's health plan would pay for the drug

absent the applicable enrollee cost-sharing and after accounting for any rebate amount; and

(6) if the health carrier prohibits third-party payments including manufacturer drug

discounts or coupons that cover all or a portion of an enrollee's cost-sharing requirements

including deductibles, co-payments, or coinsurance from applying toward the enrollee's

cost-sharing obligations under the enrollee's health plan.

(b) The commissioner of commerce
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must share reported data with the commissioner of

health and
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, in consultation with the commissioner of health, shall release a summary of the

information reported in paragraph (a) at the same time as the information required under

section
62A.02, subdivision 2
, paragraph (c).

Sec. 6.

Minnesota Statutes 2024, section 62M.09, subdivision 3, is amended to read:

Subd. 3.

Physician reviewer; adverse determinations.

(a) A physician must review

and make the adverse determination under section
62M.05
in all cases in which the utilization

review organization has concluded that an adverse determination for clinical reasons is

appropriate.

(b) The physician conducting the review and making the adverse determination must:

(1) hold a current, unrestricted license to practice medicine in this state; and

(2) have the same or similar medical specialty as a provider that typically treats or

manages the condition for which the health care service has been requested.

This paragraph does not apply to reviews conducted in connection with policies issued by

a health plan company that is assessed less than three percent of the total amount assessed

by the Minnesota Comprehensive Health Association.

(c) The physician should be reasonably available by telephone to discuss the determination

with the attending health care professional.

(d) Notwithstanding paragraph (a), a review of an adverse determination involving a

prescription drug must be conducted by a licensed pharmacist or physician who is competent

to evaluate the specific clinical issues presented in the review.

(e) This subdivision does not apply to outpatient mental health or substance abuse services

governed by subdivision 3a.

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(f) A utilization review organization is prohibited from using any form of automated

processing alone without a clinician review by an appropriate health professional, as required

under this section, when making an adverse determination.

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EFFECTIVE DATE.

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This section is effective January 1, 2027, and applies to health

plans offered, sold, issued, or renewed on or after that date.

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Sec. 7.

Minnesota Statutes 2024, section 62Q.47, is amended to read:

62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY

SERVICES.

(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

seeking chemical dependency services under section 245G.05, 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 services, psychiatric residential treatment facility services, and inpatient

hospital and residential chemical dependency and alcoholism services, except for persons

seeking chemical dependency services under section 245G.05, 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.

(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:

(1) 99492;

(2) 99493;

(3) 99494;

(4) G2214; and

(5) G0512.

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.

(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.

(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:

(1) care directed by the primary care team;

(2) structured care management;

(3) regular assessments of clinical status using validated tools; and

(4) modification of treatment as appropriate.

(k) 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.

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(l) A health plan must reimburse all alcoholism, mental health, and chemical dependency

services provided by clinical trainees pursuant to section 245I.04, subdivision 6, at a rate

at least equal to 100 percent of the rate that would be paid to an independently licensed

mental health professional performing the same services. This paragraph does not apply if

the service provided by the clinical trainee is not:

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(1) within the clinical trainee's scope of practice under section 245I.04, subdivision 7;

or

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new text begin

(2) a covered service if performed by an independently licensed mental health professional

at the same clinic.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, for health plans offered,

issued, sold, or renewed on or after that date.

new text end

Sec. 8.

Minnesota Statutes 2024, section 62U.04, subdivision 13, is amended to read:

Subd. 13.

Expanded access to and use of the all-payer claims data.

(a) The

commissioner or the commissioner's designee shall make the data submitted under

subdivisions 4, 5, 5a, and 5b, including data classified as private or nonpublic, available to
new text begin
:

(1)
new text end
individuals and organizations engaged in research on, or efforts to effect transformation

in, health care outcomes, access, quality, disparities, or spending, provided the use of the

data serves a public benefit
new text begin
; and (2) the commissioner of commerce, subject to the data use

requirements under subdivision 11, paragraph (b), to perform health insurance oversight

duties
new text end
.

new text begin

(b)
new text end
Data made available under this subdivision may not be used to:

(1) create an unfair market advantage for any participant in the health care market in

Minnesota, including health plan companies, payers, and providers;

(2) reidentify or attempt to reidentify an individual in the data; or

(3) publicly report contract details between a health plan company and provider and

derived from the data.

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
To implement
deleted text begin
paragraph
deleted text end
new text begin
paragraphs
new text end
(a)
new text begin
and (b)
new text end
, the commissioner shall:

(1) establish detailed requirements for data access; a process for data users to apply to

access and use the data; legally enforceable data use agreements to which data users must

consent; a clear and robust oversight process for data access and use, including a data

management plan, that ensures compliance with state and federal data privacy laws;

agreements for state agencies and the University of Minnesota to ensure proper and efficient

use and security of data; and technical assistance for users of the data and for stakeholders;

(2) develop a fee schedule to support the cost of expanded access to and use of the data,

provided the fees charged under the schedule do not create a barrier to access or use for

those most affected by disparities; and

(3) create a research advisory group to advise the commissioner on applications for data

use under this subdivision, including an examination of the rigor of the research approach,

the technical capabilities of the proposed user, and the ability of the proposed user to

successfully safeguard the data.

Sec. 9.

Minnesota Statutes 2024, section 62W.06, is amended by adding a subdivision to

read:

new text begin

Subd. 4.

new text end

new text begin

Data sharing.

new text end

new text begin

Notwithstanding subdivision 2, paragraph (d), the commissioner

must provide the data under subdivision 2, paragraph (a), to the commissioner of health.

The commissioner of health must maintain data received under this section in a manner

consistent with the data's classification under subdivision 2, paragraph (d).

new text end

Sec. 10.

Minnesota Statutes 2024, section 270B.14, subdivision 11, is amended to read:

Subd. 11.

Disclosure to commissioner of health.

(a) On the request of the commissioner

of health, the commissioner may disclose return information to the extent provided in

paragraph (b) and for the purposes provided in paragraph (c).

(b) Data that may be disclosed are limited to the taxpayer's identity, as defined in section

270B.01, subdivision 5
.

(c) The commissioner of health may request data only for the purposes of carrying out

epidemiologic investigations, which includes conducting occupational health and safety

surveillance, and locating and notifying individuals exposed to health hazards as a result of

employment. Requests for data by the commissioner of health must be in writing and state

the purpose of the request. Data received may be used only for the purposes of section

144.0525
.

new text begin

(d) The commissioner may provide records and information collected under sections

295.50 to 295.59 to the commissioner of health to the extent provided for and for the purposes

described in section 62J.40.

new text end

Sec. 11.
new text begin
DIRECTION TO COMMISSIONER; CHAPTER 62J EVALUATION OF

HOME CARE NURSING SERVICES; LEGISLATIVE SOLUTIONS.
new text end

new text begin

(a) The commissioner of commerce must evaluate 2026 S.F. No. 4502 in accordance

with the requirements for an evaluation of a mandated health benefit proposal under

Minnesota Statutes, section 62J.26. By January 15, 2027, 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 and health and human

services policy and finance. In addition to all analyses, impacts, data, and other information

required to be included in the evaluation under Minnesota Statutes, section 62J.26, the

commissioner must include an evaluation of the fiscal impacts on the medical assistance

program. The fiscal impacts on the medical assistance program must be determined in

consultation with the commissioner of human services.

new text end

new text begin

(b) By January 15, 2027, the commissioner of commerce must provide the chairs and

ranking minority members of the legislative committees with jurisdiction over health

insurance policy and finance and health and human services finance and policy with proposals

for legislative action to support the needs of medically complex individuals and their families

utilizing home care nursing services. The commissioner must consult with the commissioner

of human services to develop the proposals. The proposals must:

new text end

new text begin

(1) consider fiscal impacts on the state, impacted families, and health plan companies;

new text end

new text begin

(2) prioritize affordable health care coverage for the complex medical needs of recipients

of home care nursing services; and

new text end

new text begin

(3) include legislative language.

new text end

ARTICLE 4

REINSURANCE

Section 1.

Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:

Subdivision 1.

Administration of plan.

(a) The association is Minnesota's reinsurance

entity to administer the state-based reinsurance program referred to as the Minnesota premium

security plan.

(b) The association may apply for any available federal funding for the plan. All funds

received by or appropriated to the association shall be deposited in the premium security

plan account in section 62E.25, subdivision 1. The association shall notify the chairs and

ranking minority members of the legislative committees with jurisdiction over health and

human services and insurance within ten days of receiving any federal funds.

(c) The association must collect or access data from an eligible health carrier that are

necessary to determine reinsurance payments, according to the data requirements under

subdivision 5, paragraph (c).

(d) The board must not use any funds allocated to the plan for staff retreats, promotional

giveaways, excessive executive compensation, or promotion of federal or state legislative

or regulatory changes.
new text begin
This paragraph does not prohibit the association from providing

technical assistance or information regarding the association or the Minnesota premium

security plan.
new text end

(e) For each applicable benefit year, the association must notify eligible health carriers

of reinsurance payments to be made for the applicable benefit year no later than June 30 of

the year following the applicable benefit year.

(f) On a quarterly basis during the applicable benefit year, the association must provide

each eligible health carrier with the calculation of total reinsurance payment requests.

(g) By August 15
deleted text begin
of the year following the applicable benefit year
deleted text end
new text begin
, 2027, for benefit

year 2026
new text end
, the association must disburse all applicable reinsurance payments to an eligible

health carrier.
new text begin
For benefit year 2027, the association must disburse applicable reinsurance

payments to an eligible health carrier no later than August 31, 2028.
new text end

new text begin

(h) For benefit year 2027, the commissioner must transfer to the association the total

amount of money necessary for the association to pay all applicable reinsurance payments

to each eligible health carrier by August 15, 2028.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 1a, is amended

to read:

Subd. 1a.

2028 assessment on group health carriers.

(a) An assessment is imposed in

calendar year 2028 on group health carriers operating under the Minnesota premium security

plan in benefit year 2027. This is a onetime assessment.

(b) By
deleted text begin
May 1
deleted text end
new text begin
April 15
new text end
, 2028, the
deleted text begin
association
deleted text end
new text begin
commissioner
new text end
must provide each group

health carrier with an estimate of the carrier's assessment under paragraph (a).

(c) By
deleted text begin
June 30
deleted text end
new text begin
July 3
new text end
, 2028, the association must
deleted text begin
notify each group health carrier of the

carrier's assessment amount under paragraph (a). The association must determine
deleted text end
new text begin
propose
new text end

each carrier's assessment amount
deleted text begin
, in consultation with
deleted text end
new text begin
to
new text end
the commissioner
deleted text begin
,
deleted text end
new text begin
. Each carrier's

proposed assessment amount must be
new text end
based on the group health carrier's portion of the total

premiums for group health plans written in Minnesota for benefit year 2027.
new text begin
The

commissioner must approve the carrier's assessment amount by July 20.
new text end
The
deleted text begin
association

must establish the
deleted text end
new text begin
final
new text end
assessment amount for each group health plan
deleted text begin
so
deleted text end
new text begin
must ensure
new text end
that

the aggregate assessment amount collected from group health plans under this subdivision

equals the amount necessary for the appropriations and transfers under section
62E.25,

subdivision 1
.
new text begin
By July 24, 2028, the association must notify each group health carrier of

the carrier's proposed assessment amount under paragraph (a).
new text end

(d) Subject to paragraph (e), each group health carrier must pay the assessment under

paragraph (a) to the
deleted text begin
association
deleted text end
new text begin
commissioner
new text end
by August
deleted text begin
1
deleted text end
new text begin
7
new text end
, 2028.
new text begin
The commissioner must

deposit assessment payments received under this paragraph in the premium security plan

account under section 62E.25.
new text end
A group health plan must pay the assessment in the manner

determined by the commissioner.

(e) A group health carrier may apply to the commissioner to defer all or part of the

assessment imposed under paragraph (a). The application must be submitted to the

commissioner by May
deleted text begin
15
deleted text end
new text begin
1
new text end
, 2028. The commissioner may defer all or part of the assessment

if the commissioner determines the payment of the assessment places the group health

carrier in a financially impaired condition. The commissioner may deny an application for

deferral under this paragraph. No later than June
deleted text begin
15
deleted text end
new text begin
1
new text end
, 2028, the commissioner must notify

the association and the group health carrier whether the assessment deferral is approved or

denied. If the commissioner approves the deferral request, the notice must include the amount

of and due date for the deferred portion of the assessment. If all or part of the assessment

is deferred, the association must include the amount deferred in the other group health

carriers' assessments in a proportionate manner consistent with this subdivision.
deleted text begin
The
deleted text end
new text begin
A
new text end

group health carrier that receives a deferral is liable to the
deleted text begin
association
deleted text end

new text begin
commissioner
new text end
for the

amount deferred and is prohibited from receiving or becoming entitled to a reinsurance

payment under the Minnesota premium security plan until the group health carrier has paid

the deferred assessment.

(f) If the association
deleted text begin
determines
deleted text end
new text begin
and commissioner determine
new text end
the assessment imposed

under paragraph (a) exceeds or is less than the amount necessary to operate and administer

the Minnesota premium security plan and issue reinsurance payments, the
deleted text begin
association
deleted text end
new text begin

commissioner
new text end
must require group health carriers to pay an additional amount
deleted text begin
or
deleted text end
new text begin
to
new text end
the
deleted text begin

association
deleted text end
new text begin
premium security plan account created under section 62E.25 or the commissioner
new text end

must issue a refund to the group health carriers
new text begin
out of the premium security plan account
new text end
.

The association
new text begin
and commissioner
new text end
must determine the accuracy of the assessment by
deleted text begin
May

30
deleted text end
new text begin
March 15
new text end
, 2029.

deleted text begin

(g) By August 15, 2028, the association must remit the assessments collected under this

subdivision to the commissioner for deposit in the premium security plan account created

under section
62E.25
.

deleted text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 2, is amended

to read:

Subd. 2.

Payment parameters.

(a) The board must design and adjust the payment

parameters to ensure the payment parameters:

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

(2) will increase participation in the individual market;

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

market;

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

market;

(5) take into account any federal funding available for the plan;

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

(7) ensure the premium security plan account created under section
62E.25, subdivision

1, has sufficient money to ensure MNsure's stable operation after taking into account the

Minnesota premium security plan's effect on MNsure's funding; and

(8) take into account the total amount available to fund the plan.

(b) The attachment point for the plan is the threshold amount for claims costs incurred

by an eligible health carrier for an enrolled individual's covered benefits in a benefit year,

beyond which the claims costs for benefits are eligible for reinsurance payments. The

attachment point shall be set by the board at $50,000 or more, but not exceeding the

reinsurance cap.

(c) The coinsurance rate for the plan is the rate at which the association will reimburse

an eligible health carrier for claims incurred for an enrolled individual's covered benefits

in a benefit year above the attachment point and below the reinsurance cap. The coinsurance

rate shall be set by the board at a rate between 50 and 80 percent.

(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible

health carrier for an enrolled individual's covered benefits, after which the claims costs for

benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set

by the board at $250,000 or less.

(e) The board may adjust the payment parameters to the extent necessary to secure

federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1,

section 8.

(f) For purposes of paragraph (a), clause (7), the
deleted text begin
association
deleted text end
new text begin
commissioner
new text end
must consult

with the commissioner of management and budget and the board of directors of MNsure to

determine the amount of funding necessary to ensure MNsure's stable operation.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 297I.20, subdivision 7, as amended

by Laws 2026, chapter 88, article 1, section 179, is amended to read:

Subd. 7.

Reinsurance credit.

Beginning with taxable years after December 31, 2028,

a taxpayer may claim a credit against the premiums tax imposed under this chapter equal

to the amount of the assessment paid by the taxpayer under section
62E.23
in the immediately

preceding calendar year. If the amount of the credit exceeds the liability for tax under this

chapter, the commissioner must refund the excess to the
deleted text begin
insurance company
deleted text end
new text begin
taxpayer
new text end
. An

amount sufficient to pay the refunds under this subdivision is appropriated to the

commissioner from the general fund. The credit under this subdivision does not affect the

calculation of fire state aid under section
477B.03
and police state aid under section
477C.03
.

The commissioner of commerce must annually provide to the commissioner a list of

assessments paid by taxpayers under section
62E.23
by March 1 of the calendar year

following the assessment.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2028.

new text end

ARTICLE 5

PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL

Section 1.

Minnesota Statutes 2024, section 62J.89, subdivision 1, is amended to read:

Subdivision 1.

Definition.

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
deleted text begin
, the advisory council,
deleted text end
or in the

conduct of the board's
deleted text begin
or council's
deleted text end
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.

Sec. 2.

Minnesota Statutes 2024, section 62J.89, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Prior to the acceptance of an appointment or employment, or prior

to entering into a contractual agreement, a board
deleted text begin
or advisory council
deleted text end
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.

(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.

(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.

Sec. 3.

Minnesota Statutes 2024, section 62J.90, subdivision 2, is amended to read:

Subd. 2.

Identification of certain prescription drug products.

(a) The board
deleted text begin
, in

consultation with the advisory council, shall
deleted text end
new text begin
must
new text end
identify selected prescription drug products

based on the following criteria:

(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);

(2) brand name drugs or biologics with a WAC of $60,000 or more per calendar year

or per course of treatment;

(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

(4) generic drugs for which the WAC:

(i) is $100 or more, after adjusting for changes in the CPI, for:

(A) a 30-day supply;

(B) a course of treatment lasting less than 30 days; or

(C) one unit of the drug, if the labeling approved by the Food and Drug Administration

does not recommend a finite dosage; and

(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.

The board is not required to identify all prescription drug products that meet the criteria in

this paragraph.

(b) The board, in consultation with
deleted text begin
the advisory council and
deleted text end
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.

(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.

Sec. 4.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 62J.86, subdivision 2; and 62J.88,

new text end

new text begin

are repealed.

new text end

ARTICLE 6

UNCLAIMED PROPERTY

Section 1.

Minnesota Statutes 2024, section 345.31, is amended by adding a subdivision

to read:

new text begin

Subd. 10.

new text end

new text begin

Virtual currency.

new text end

new text begin

"Virtual currency" means a digital representation of value

used as a medium of exchange, unit of account, or store of value that does not have legal

tender status recognized by the United States. Virtual currency does not include:

new text end

new text begin

(1) software or protocols governing the transfer of the digital representation of value;

new text end

new text begin

(2) game-related digital content; or

new text end

new text begin

(3) a loyalty card or gift card.

new text end

Sec. 2.

new text begin

[345.382] FUNDS HELD FOR THE PREPAYMENT OF

FUNERAL-RELATED EXPENSES.

new text end

new text begin

Funds on deposit or held in trust for the prepayment of a funeral or other funeral-related

expenses are presumed abandoned at the earliest of:

new text end

new text begin

(1) three years after the date of death of the beneficiary;

new text end

new text begin

(2) one year after the date the beneficiary has attained, or would have attained if living,

the age of 105, if the holder does not know whether the beneficiary is deceased; or

new text end

new text begin

(3) 30 years after the contract for prepayment was executed.

new text end

Sec. 3.

new text begin

[345.383] EXEMPTION FOR CERTAIN PROPERTY HELD IN

TAX-DEFERRED ACCOUNTS.

new text end

new text begin

Property held in a plan described in section 529 or 529A of the Internal Revenue Code,

as amended, are exempt from the requirements of sections 345.31 to 345.60.

new text end

Sec. 4.

new text begin

[345.384] VIRTUAL CURRENCY.

new text end

new text begin

(a) Virtual currency is presumed abandoned three years after the apparent owner's latest

indication of interest in the virtual currency.

new text end

new text begin

(b) For purposes of this section, an indication of an apparent owner's interest in virtual

currency includes:

new text end

new text begin

(1) a record communicated by the apparent owner to the holder or agent of the holder

concerning the property or the account in which the property is held;

new text end

new text begin

(2) an oral communication by the apparent owner to the holder or agent of the holder

concerning the property or the account in which the property is held, if the holder or the

holder's agent contemporaneously makes and preserves a record of the fact of the apparent

owner's communication;

new text end

new text begin

(3) a distribution, or evidence of receipt of a distribution made by electronic or similar

means; or

new text end

new text begin

(4) activity directed by an apparent owner in the account in which the property is held,

including accessing the account or information concerning the account, or a direction by

the apparent owner to increase, decrease, or otherwise change the amount or type of virtual

currency held in the account.

new text end

new text begin

(c) An action by an agent or other representative of an apparent owner, other than the

holder acting as the apparent owner's agent, is presumed to be an action on behalf of the

apparent owner.

new text end

new text begin

(d) A communication with an apparent owner by a person other than the holder or the

holder's representative is not an indication of interest in the property by the apparent owner

unless a record of the communication evidences the apparent owner's knowledge of a right

to the property.

new text end

Sec. 5.

Minnesota Statutes 2024, section 345.43, is amended by adding a subdivision to

read:

new text begin

Subd. 2b.

new text end

new text begin

Virtual currency.

new text end

new text begin

(a) If property reported to the commissioner is virtual

currency, the holder must liquidate the virtual currency and remit the proceeds to the

commissioner.

new text end

new text begin

(b) The liquidation must occur anytime within 30 days before filing the report under

section 345.41. The owner does not have recourse against the holder or the commissioner

to recover any gain in value that occurs after the liquidation of the virtual currency under

this subdivision.

new text end

new text begin

(c) If a holder cannot liquidate virtual currency and cannot otherwise cause virtual

currency to be liquidated, the holder must promptly notify the commissioner in writing and

explain the reasons why the virtual currency cannot be liquidated. The commissioner has

absolute and sole discretion to direct the holder to:

new text end

new text begin

(1) transfer the virtual currency that cannot be liquidated to a custodian selected by the

commissioner; or

new text end

new text begin

(2) continue to hold the virtual currency until the commissioner or the holder determines

that the virtual currency can be liquidated pursuant to this chapter.

new text end

ARTICLE 7

TECHNICAL AND MISCELLANEOUS CHANGES

Section 1.

Minnesota Statutes 2025 Supplement, section 41A.09, subdivision 2a, is amended

to read:

Subd. 2a.

Definitions.

For the purposes of this section, the terms defined in this

subdivision have the meanings given them.

(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,

including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other

renewable resources, including residue and waste generated from the production, processing,

and marketing of agricultural products, forest products, and other renewable resources, that:

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

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

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

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

(d) "Rural economic infrastructure" means the development of activities that will enhance

the value of agricultural crop or livestock commodities or by-products or waste from farming

operations through new and improved value-added conversion processes and technologies,

the development of more timely and efficient infrastructure delivery systems, and the

enhancement of marketing opportunities. "Rural economic infrastructure" also means land,

buildings, structures, fixtures, and improvements located or to be located in Minnesota and

used or operated primarily for the processing or the support of production of marketable

products from agricultural commodities or wind energy produced in Minnesota.

Sec. 2.

Minnesota Statutes 2024, section 46.044, subdivision 1, is amended to read:

Subdivision 1.

Issuance and conditions.

An application for a bank charter must be

granted if (1) the applicants are of good moral character and financial integrity, (2) there is

a reasonable public demand for this bank in this location, (3) the probable volume of business

in this location is sufficient to
deleted text begin
insure
deleted text end
new text begin
ensure
new text end
and maintain the solvency of the new bank and

the solvency of the then existing bank or banks in the locality without endangering the safety

of any bank in the locality as a place of deposit of public and private money, (4) the

commissioner of commerce is satisfied that the proposed bank will be properly and safely

managed, and (5) the commissioner is satisfied that the capital funds required pursuant to

section
48.02
are available and the commissioner may accept any reasonable demonstration

including subscription agreements supported by current financial statements. If the application

does not satisfy the requirements of this subdivision, it must be denied. In case of the denial

of the application, the commissioner of commerce shall specify the grounds for the denial.

A person aggrieved may obtain judicial review of the determination in accordance with

chapter 14.

Sec. 3.

Minnesota Statutes 2024, section 48.195, is amended to read:

48.195 INTEREST RATES; USURY LIMIT FOR DEPOSITORY INSTITUTIONS.

Notwithstanding any law to the contrary, a bank, savings bank, savings association, or

credit union organized under the laws of this state, or a national bank or federally chartered

savings bank, savings association, or credit union, doing business in this state, may charge

on any loan or discount made or upon any note, bill or other evidence of debt, except an

extension of credit made pursuant to section
48.185
, interest at a rate of not more than 4-1/2

percent in excess of the discount rate, including any surcharge thereon, on 90-day commercial

paper in effect at the
new text begin
Board of Governors of the
new text end
Federal Reserve
deleted text begin
Bank located in the Ninth

Federal Reserve District
deleted text end
new text begin
System
new text end
.

Sec. 4.

Minnesota Statutes 2024, section 49.37, is amended to read:

49.37 STOCKHOLDERS TO APPROVE; CERTIFICATE OF CONSOLIDATION

OR MERGER.

new text begin

(a)
new text end
Either before or after the consolidation or merger agreement has been approved by

the commissioner of commerce, it must be submitted to the stockholders of each corporation

at a meeting thereof called, and it does not become binding upon the corporation until it has

been approved at each of the meetings required by this section by the vote or ballot of the

stockholders, holding at least a majority of the amount of stock of the respective corporations,

or a higher percentage as may be required by the certificate of incorporation of the

corporations. Proof of the holding of these meetings and the results thereof must be submitted

to the commissioner of commerce.

new text begin

(b)
new text end
After the agreement called for by sections
49.33
to
49.41
has been approved by the

stockholders of the respective corporations and by the commissioner of commerce, the
deleted text begin
latter

shall
deleted text end
new text begin
commissioner of commerce must
new text end
issue a certificate reciting that the corporations have

complied with the provisions of sections
49.34
to
49.41
and declaring the consolidation or

merger of these corporations and the name of the consolidated or surviving corporation, the

amount of capital stock thereof, the names of the first board of directors, and the place of

business of the consolidated or surviving corporation, which must be within the city where

any of the constituent corporations have been previously authorized to have their places of

business.

new text begin

(c)
new text end
Upon the issuing of this certificate
deleted text begin
and the filing of it for record in the Office of the

Secretary of State
deleted text end
, the incorporation is deemed to be complete in the case of the consolidation,

and the assets of the constituent corporations merged into the survivor in the case of a

merger, and the consolidated or surviving corporation shall, from the date of this certificate,

have the term of corporate existence as may be specified in it, not exceeding the longest

unexpired term of any constituent corporation. The certificate of the commissioner of

commerce is prima facie evidence that all of the provisions of sections
49.34
to
49.41
have

been complied with, and is conclusive evidence of the existence of the consolidated or

surviving corporation.

Sec. 5.

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

58B.051 REGISTRATION FOR LENDERS.

(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender

before providing services in Minnesota. A lender must not offer or make a student loan to

a resident of Minnesota without first registering with the commissioner as provided in this

section.

(b) A registration application must include:

(1) the lender's name;

(2) the lender's address;

(3) the names of all officers, directors, owners, or other persons in control of an applicant,

as defined in section
58B.02, subdivision 6
; and

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

(c) Registration issued or renewed expires December 31 of each year. A lender must

renew the lender's registration on an annual basis.

(d) The commissioner may adopt and enforce:

(1) registration procedures for lenders, which may include using the Nationwide

Multistate Licensing System and Registry;

(2) nonrefundable registration fees for lenders, which may include fees for using the

Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;

(3) procedures and nonrefundable fees to renew a lender's registration, which may include

fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be

paid directly by the lender; and

(4) alternate registration procedures and nonrefundable fees for postsecondary education

institutions that offer student loans.

Sec. 6.

Minnesota Statutes 2024, section 60A.13, subdivision 1, is amended to read:

Subdivision 1.

Annual statements required.

Every insurance company, including

fraternal benefit societies, and reciprocal exchanges, doing business in this state, shall file

with the commissioner
deleted text begin
, annually, on or before March 1,
deleted text end
the appropriate verified National

Association of Insurance Commissioners' annual statement blank
deleted text begin
,
deleted text end
new text begin
on or before April 30 for

all lines of insurance except health, which must be filed on or before May 31. The National

Association of Insurance Commissioners' annual statement blank must be
new text end
prepared in

accordance with the association's instructions handbook and following those accounting

procedures and practices prescribed by the association's accounting practices and procedures

manual, unless the commissioner requires or finds another method of valuation reasonable

under the circumstances. Another method of valuation permitted by the commissioner must

be at least as conservative as those prescribed in the association's manual. All companies

required to file an annual statement under this subdivision may also be required to file with

the commissioner and the National Association of Insurance Commissioners a copy of their

annual statement in an electronic form prescribed by the commissioner. All Minnesota

domestic insurers required to file annual statements under this subdivision must also file

quarterly statements with the commissioner for the first, second, and third calendar quarter

on or before 45 days after the end of the applicable quarter, prepared in accordance with

the association's instruction handbook. All companies required to file quarterly statements

under this subdivision may also be required to file the quarterly statements with the

commissioner and the National Association of Insurance Commissioners in an electronic

form prescribed by the commissioner. In addition, the commissioner may require the filing

of any other information determined to be reasonably necessary for the continual enforcement

of these laws. The statement may be limited to the insurer's business and condition in the

United States unless the commissioner finds that the business conducted outside the United

States may detrimentally affect the interests of policyholders in this state. The statements

shall also contain a verified schedule showing all details required by law for assessment

and taxation. The statement or schedules shall be in the form and shall contain all matters

the commissioner may prescribe, and it may be varied as to different types of insurers so

as to elicit a true exhibit of the condition of each insurer.

Sec. 7.

Minnesota Statutes 2024, section 60A.13, subdivision 6, is amended to read:

Subd. 6.

Company or agent cannot continue business unless statement is filed.

deleted text begin
No
deleted text end
new text begin

A
new text end
company
deleted text begin
shall transact
deleted text end
new text begin
is prohibited from transacting
new text end
any new business in this state after
deleted text begin

May
deleted text end
new text begin
August
new text end
31 in any year unless
deleted text begin
it shall have
deleted text end
new text begin
the company
new text end
previously transmitted its

annual statement to the commissioner and filed a copy of its statement with the National

Association of Insurance Commissioners. The commissioner may by order annually require

that each insurer pay the required fee to the National Association of Insurance Commissioners

for the filing of annual statements, but the fee shall not be more than 50 percent greater than

the fee set by the National Association of Insurance Commissioners. Failure to file the

annual statement with the commissioner or the National Association of Insurance

Commissioners is a violation of section
72A.061, subdivision 1
. The fee shall be based on

the relative premium volume of each insurer.

Sec. 8.

Minnesota Statutes 2024, section 72A.061, subdivision 5, is amended to read:

Subd. 5.

Extensions.

The commissioner may grant an extension of any filing deadline

or requirement specified by this section
deleted text begin
, on receiving, not less than ten days
deleted text end
new text begin
if the

commissioner receives a written request for an extension from the company
new text end
before the date

of default
deleted text begin
, satisfactory evidence of imminent hardship to the company
deleted text end
.

Sec. 9.

Minnesota Statutes 2025 Supplement, section 239.761, subdivision 3, is amended

to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with biofuel must not be contaminated

with water or other impurities and must comply with ASTM specification
deleted text begin
D4814-24a
deleted text end
new text begin
D4814
new text end
.

Gasoline that is not blended with biofuel must also comply with the volatility requirements

in Code of Federal Regulations, title 40, part 1090.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,

a person responsible for the product:

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

4;

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

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

biofuel;

(4) shall not blend the gasoline with products commonly and commercially known as

casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural

gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive

designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 10.

Minnesota Statutes 2025 Supplement, section 239.761, subdivision 4, is amended

to read:

Subd. 4.

Gasoline blended with ethanol; general.

(a) Gasoline may be blended with

agriculturally derived, denatured ethanol that complies with the requirements of subdivision

5.

(b) A gasoline-ethanol blend must:

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

1090;

(2) comply with ASTM specification
deleted text begin
D4814-24a
deleted text end
new text begin
D4814
new text end
, or the gasoline base stock from

which a gasoline-ethanol blend was produced must comply with ASTM specification
deleted text begin

D4814-24a
deleted text end
new text begin
D4814
new text end
; and

(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,

drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,

or otherwise removed from a refinery or terminal.

Sec. 11.

Minnesota Statutes 2025 Supplement, section 239.761, subdivision 5, is amended

to read:

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to be blended with gasoline must

be agriculturally derived and must comply with ASTM specification
deleted text begin
D4806-21a
deleted text end
new text begin
D4806
new text end
.

This includes the requirement that ethanol may be denatured only as specified in Code of

Federal Regulations, title 27, parts 20 and 21.

Sec. 12.

Minnesota Statutes 2025 Supplement, section 239.761, subdivision 6, is amended

to read:

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a) A person responsible for

the product shall comply with the following requirements:

(1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total,

of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any

time in this state; and

(2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in

paragraph (b) must not be sold or offered for sale in this state.

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

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

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

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM

specification
deleted text begin
D4814-24a
deleted text end
new text begin
D4814
new text end
. Nonethanol oxygenates must not be blended into gasoline

after the gasoline has been sold, transferred, or otherwise removed from a refinery or terminal.

Sec. 13.

Minnesota Statutes 2024, section 239.761, subdivision 7, is amended to read:

Subd. 7.

Heating fuel oil.

Heating fuel oil must comply with ASTM specification
deleted text begin

D396-12
deleted text end
new text begin
D396
new text end
.

Sec. 14.

Minnesota Statutes 2024, section 239.761, subdivision 8, is amended to read:

Subd. 8.

Diesel fuel oil.

(a) When diesel fuel oil is not blended with biodiesel, it must

comply with ASTM specification
deleted text begin
D975-12a
deleted text end
new text begin
D975
new text end
.

(b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel

component must comply with ASTM specification
deleted text begin
D975-12a
deleted text end
new text begin
D975
new text end
and the biodiesel

component must comply with ASTM specification
deleted text begin
D6751-11b
deleted text end
new text begin
D6751
new text end
.

Sec. 15.

Minnesota Statutes 2024, section 239.761, subdivision 9, is amended to read:

Subd. 9.

Kerosene.

Kerosene must comply with ASTM specification
deleted text begin
D3699-08
deleted text end
new text begin
D3699
new text end
.

Sec. 16.

Minnesota Statutes 2024, section 239.761, subdivision 10, is amended to read:

Subd. 10.

Aviation gasoline.

Aviation gasoline must comply with ASTM specification
deleted text begin

D910-11
deleted text end
new text begin
D910
new text end
.

Sec. 17.

Minnesota Statutes 2024, section 239.761, subdivision 11, is amended to read:

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation turbine fuel and jet fuel must comply

with ASTM specification
deleted text begin
D1655-12
deleted text end
new text begin
D1655
new text end
.

Sec. 18.

Minnesota Statutes 2024, section 239.761, subdivision 12, is amended to read:

Subd. 12.

Gas turbine fuel oil.

Fuel oil for use in nonaviation gas turbine engines must

comply with ASTM specification
deleted text begin
D2880-03
deleted text end
new text begin
D2880
new text end
.

Sec. 19.

Minnesota Statutes 2024, section 239.761, subdivision 13, is amended to read:

Subd. 13.

E85.

A blend of ethanol and gasoline, containing not more than 85 percent

ethanol, produced for use as a motor fuel in alternative fuel vehicles as defined in section

296A.01, subdivision 5
, must comply with ASTM specification
deleted text begin
D5798-11
deleted text end
new text begin
D5798
new text end
.

Sec. 20.

Minnesota Statutes 2024, section 239.761, subdivision 14, is amended to read:

Subd. 14.

M85.

A blend of methanol and gasoline, containing at least 70 percent methanol

and not more than 85 percent methanol, produced for use as a motor fuel in alternative fuel

vehicles as defined in section
296A.01, subdivision 5
, must comply with ASTM specification
deleted text begin

D5797-07
deleted text end
new text begin
D5797
new text end
.

Sec. 21.

Minnesota Statutes 2024, section 239.761, subdivision 16, is amended to read:

Subd. 16.

Biodiesel fuel definition.

"Biodiesel fuel" means a renewable, biodegradable,

mono alkyl ester combustible liquid that is derived from agricultural plant oils or animal

fats and that meets American Society for Testing and Materials (ASTM) specification
deleted text begin

D6751-11b
deleted text end
new text begin
D6751
new text end
for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.

Sec. 22.

Minnesota Statutes 2024, section 239.761, subdivision 17, is amended to read:

Subd. 17.

Grade 82 unleaded aviation gasoline.

Grade 82 unleaded aviation gasoline

must comply with ASTM specification
deleted text begin
D6227-12
deleted text end
new text begin
D6227
new text end
.

Sec. 23.

Minnesota Statutes 2024, section 239.77, subdivision 1, is amended to read:

Subdivision 1.

Biodiesel blend and fuel.

(a) "Biodiesel blend" is a blend of diesel fuel

and biodiesel fuel between six percent and 20 percent for on-road and off-road diesel-fueled

vehicle use. Biodiesel blend must comply with ASTM specification
deleted text begin
D7467-10
deleted text end
new text begin
D7467
new text end
.

(b) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl ester combustible

liquid fuel that is derived from agricultural and other plant oils or animal fats and that meets

American Society for Testing and Materials specification
deleted text begin
D6751-11b
deleted text end
new text begin
D6751
new text end
for Biodiesel

Fuel (B100) Blend Stock for Distillate Fuels.

(c) Biodiesel produced from palm oil is not biodiesel fuel for the purposes of this section,

unless the palm oil is contained within waste oil and grease collected within the United

States or Canada.

Sec. 24.

Minnesota Statutes 2024, section 296A.01, subdivision 7, is amended to read:

Subd. 7.

Aviation gasoline.

"Aviation gasoline" means any gasoline that is used to

produce or generate power for propelling internal combustion engine aircraft.

Aviation gasoline includes any gasoline:

(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor

or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation

gasoline" that meets specifications in ASTM specification
deleted text begin
D910-16
deleted text end
new text begin
D910
new text end
or any other

ASTM specification as gasoline appropriate for use in producing or generating power for

propelling internal combustion engine aircraft; or

(2) sold to a dealer of aviation gasoline for dispensing directly into the fuel tank of an

aircraft.

Sec. 25.

Minnesota Statutes 2024, section 296A.01, subdivision 8, is amended to read:

Subd. 8.

Aviation turbine fuel and jet fuel.

"Aviation turbine fuel" and "jet fuel" mean

blends of hydrocarbons derived from crude petroleum, natural gasoline, and synthetic

hydrocarbons, intended for use in aviation turbine engines, and that meet the specifications

in ASTM specification
deleted text begin
D1655-12
deleted text end
new text begin
D1655
new text end
.

Sec. 26.

Minnesota Statutes 2024, section 296A.01, subdivision 14, is amended to read:

Subd. 14.

Diesel fuel oil.

"Diesel fuel oil" means a petroleum distillate or blend of

petroleum distillate and residual fuels that is intended for use as a motor fuel in internal

combustion diesel engines and that meets ASTM specification
deleted text begin
D975-11b
deleted text end
new text begin
D975
new text end
.

Sec. 27.

Minnesota Statutes 2024, section 296A.01, subdivision 19, is amended to read:

Subd. 19.

E85.

"E85" means a petroleum product that is a blend of agriculturally derived

denatured ethanol and gasoline or natural gasoline that contains not more than 85 percent

ethanol by volume, but at a minimum must contain greater than 50 percent ethanol by

volume. For the purposes of this chapter, the energy content of E85 will be considered to

be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles

as defined in subdivision 5 must comply with ASTM specification
deleted text begin
D5798-11
deleted text end
new text begin
D5798
new text end
.

Sec. 28.

Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 20, is amended

to read:

Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means ethanol that is to be blended

with gasoline, has been agriculturally derived, and complies with ASTM specification
deleted text begin

D4806-21a
deleted text end
new text begin
D4806
new text end
. This includes the requirement that ethanol may be denatured only as

specified in Code of Federal Regulations, title 27, parts 20 and 21.

Sec. 29.

Minnesota Statutes 2024, section 296A.01, subdivision 22, is amended to read:

Subd. 22.

Gas turbine fuel oil.

"Gas turbine fuel oil" means fuel that contains mixtures

of hydrocarbon oils free of inorganic acid and excessive amounts of solid or fibrous foreign

matter, intended for use in nonaviation gas turbine engines, and that meets the specifications

in ASTM specification
deleted text begin
D2880-03
deleted text end
new text begin
D2880
new text end
.

Sec. 30.

Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 23, is amended

to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as gasoline regardless of

their classification or uses, except casinghead gasoline, absorption gasoline, condensation

gasoline, drip gasoline, or natural gasoline that under the requirements of section
239.761,

subdivision 3
, must not be blended with gasoline that has been sold, transferred, or otherwise

removed from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and

commercially used as, a fuel in spark-ignition, internal combustion engines, and that when

tested by the Weights and Measures Division meets the specifications in ASTM specification
deleted text begin

D4814-24a
deleted text end
new text begin
D4814
new text end
.

(b) Gasoline that is not blended with ethanol must not be contaminated with water or

other impurities and must comply with both ASTM specification
deleted text begin
D4814-24a
deleted text end
new text begin
D4814
new text end
and

the volatility requirements in Code of Federal Regulations, title 40, part 1090.

(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal,

a person responsible for the product:

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

24;

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

derived ethanol;

(3) must not blend the gasoline with other petroleum products that are not gasoline or

denatured, agriculturally derived ethanol;

(4) must not blend the gasoline with products commonly and commercially known as

casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural

gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive

designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 31.

Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 24, is amended

to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with

nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or

ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that

complies with ASTM specification
deleted text begin
D4814-24a
deleted text end
new text begin
D4814
new text end
. Oxygenates, other than denatured

ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or

otherwise removed from a refinery or terminal.

Sec. 32.

Minnesota Statutes 2024, section 296A.01, subdivision 26, is amended to read:

Subd. 26.

Heating fuel oil.

"Heating fuel oil" means a petroleum distillate, blend of

petroleum distillates and residuals, or petroleum residual heating fuel that meets the

specifications in ASTM specification
deleted text begin
D396-12
deleted text end
new text begin
D396
new text end
.

Sec. 33.

Minnesota Statutes 2024, section 296A.01, subdivision 28, is amended to read:

Subd. 28.

Kerosene.

"Kerosene" means a refined petroleum distillate consisting of a

homogeneous mixture of hydrocarbons essentially free of water, inorganic acidic and basic

compounds, and excessive amounts of particulate contaminants and that meets the

specifications in ASTM specification
deleted text begin
D3699-08
deleted text end
new text begin
D3699
new text end
.

Sec. 34.

Minnesota Statutes 2024, section 296A.01, subdivision 35, is amended to read:

Subd. 35.

M85.

"M85" means a petroleum product that is a liquid fuel blend of methanol

and gasoline that contains at least 70 percent methanol and not more than 85 percent methanol

by volume. For the purposes of this chapter, the energy content of M85 will be considered

to be 65,000 BTUs per gallon. M85 produced for use as a motor fuel in alternative fuel

vehicles, as defined in subdivision 5, must comply with ASTM specification
deleted text begin
D5797-07
deleted text end
new text begin

D5797
new text end
.

Sec. 35.

Minnesota Statutes 2024, section 349.211, subdivision 2b, is amended to read:

Subd. 2b.

Paddlewheel prizes.

new text begin
(a)
new text end
The maximum cash prize
deleted text begin
which
deleted text end
new text begin
that
new text end
may be awarded

for a paddle ticket is $70.
new text begin
The maximum value of a merchandise prize that may be awarded

for a paddle ticket must not exceed a fair market value of $200.
new text end
An organization may not

sell any paddle ticket for more than
deleted text begin
$2
deleted text end
new text begin
$5
new text end
.

new text begin

(b) "Merchandise prize" does not include gift cards that can be redeemed for cash.

new text end

Sec. 36.

Minnesota Statutes 2024, section 609.761, subdivision 3, is amended to read:

Subd. 3.

Social skill game.

Sections
609.755
and
609.76
do not prohibit tournaments

or contests that satisfy all of the following requirements:

(1) the tournament or contest consists of the card games of chance commonly known as

cribbage, skat, sheepshead, bridge, euchre,
new text begin
hasenpfeffer,
new text end
pinochle, gin, 500, smear, Texas

hold'em, or whist;

(2) the tournament or contest does not provide any direct financial benefit to the promoter

or organizer;

(3) the value of all prizes awarded for each tournament or contest does not exceed $200;

and

(4) for a tournament or contest involving Texas hold'em:

(i) no person under 18 years of age may participate;

(ii) the payment of an entry fee or other consideration for participating is prohibited;

(iii) the value of all prizes awarded to an individual winner of a tournament or contest

at a single location may not exceed $200 each day; and

(iv) the organizer or promoter must ensure that reasonable accommodations are made

for players with disabilities. Accommodations to the table and the cards shall include the

announcement of the cards visible to the entire table and the use of Braille cards for players

who are blind.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 37.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, section 48.158,

new text end

new text begin

is repealed.

new text end

APPENDIX

Repealed Minnesota Statutes: H4188-3

48.158 SETTLEMENT OF CHECKS AT LESS THAN PAR.

No bank or trust company organized under the laws of this state shall settle any check drawn on it otherwise than at par. The provisions of this section shall not apply with respect to the settlement of a check sent to such bank or trust company as a special collection item. This section is in effect on and after November 1, 1968.

56.08 ANNUAL LICENSE FEE.

Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year.

62J.86 DEFINITIONS.

Subd. 2.

Advisory council.

"Advisory council" means the Prescription Drug Affordability Advisory Council established under section
62J.88
.

62J.88 PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL.

Subdivision 1.

Establishment.

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.

Subd. 2.

Membership.

The council's membership shall consist of the following:

(1) two members representing patients and health care consumers;

(2) two members representing health care providers;

(3) one member representing health plan companies;

(4) two members representing employers, with one member representing large employers and one member representing small employers;

(5) one member representing government employee benefit plans;

(6) one member representing pharmaceutical manufacturers;

(7) one member who is a health services clinical researcher;

(8) one member who is a pharmacologist;

(9) one member representing the commissioner of health with expertise in health economics;

(10) one member representing pharmaceutical wholesalers;

(11) one member representing pharmacy benefit managers;

(12) one member from the Rare Disease Advisory Council;

(13) one member representing generic drug manufacturers;

(14) one member representing pharmaceutical distributors; and

(15) one member who is an oncologist who is not employed by, under contract with, or otherwise affiliated with a hospital.

Subd. 3.

Terms.

(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.

(b) Removal and vacancies of advisory council members shall be governed by section
15.059
.

Subd. 4.

Compensation.

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.

Subd. 5.

Meetings.

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
.

Subd. 6.

Exemption.

Notwithstanding section
15.059
, the advisory council shall not expire.

332A.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.

332B.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.