Omnibus Commerce and Consumer Protection policy and supplemental appropriations

A bill for an act

relating to commerce; eliminating the Prescription Drug Affordability Advisory

Council; modifying various provisions governing nondepository financial

institutions, insurance, consumer protection, telecommunications, securities,

financial products, and unclaimed property; providing for health plan regulatory

alignment; transferring duties and employees; modifying the premium security

plan; modifying provisions related to charitable gambling; requiring reports; making

technical corrections; appropriating money and making reductions; 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; 52.063, subdivision 3;

52.24, subdivisions 1, 2, by adding a subdivision; 53.04, subdivision 3a; 53B.69,

subdivision 10; 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.07, by adding a subdivision; 60A.085;

60A.13, subdivisions 1, 6; 60A.50, subdivisions 1, 3; 60A.951, subdivision 3;

60A.985, subdivision 8; 60A.9853, subdivision 1; 60A.9854; 60B.03, subdivision

2; 60G.01, subdivisions 2, 4; 60K.383; 62A.02, subdivision 8; 62A.021, subdivision

1; 62A.135, subdivision 1; 62A.46, subdivision 2; 62A.61; 62A.65, subdivisions

7, 8; 62D.08, subdivisions 1, 2, 3, 7, by adding a subdivision; 62D.12, subdivision

1; 62D.124, subdivision 5; 62D.221, subdivisions 1, 2; 62E.11, subdivisions 9,

13; 62E.23, subdivision 1; 62J.40; 62J.60, subdivision 5; 62J.89, subdivisions 1,

2; 62J.90, subdivision 2; 62J.96, by adding a subdivision; 62K.07, subdivision 2;

62L.02, subdivision 8; 62L.08, subdivision 11; 62L.09, subdivision 3; 62L.10,

subdivision 4; 62L.11, subdivision 2; 62M.02, by adding a subdivision; 62M.09,

subdivision 3; 62M.11; 62Q.01, subdivision 2; 62Q.106; 62Q.188, subdivision 2;

62Q.37, subdivision 2; 62Q.47; 62Q.51, subdivision 3; 62Q.545; 62Q.556,

subdivisions 3, 4; 62Q.69, subdivisions 2, 3; 62Q.71; 62Q.73, subdivisions 3, 10;

62Q.81, subdivision 7; 62U.04, subdivision 13; 62W.06, by adding a subdivision;

65A.27, subdivision 1; 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; 237.035;

237.036; 237.069; 237.07, subdivision 1; 237.11; 237.164; 237.626, subdivisions

1, 3; 237.66, by adding subdivisions; 237.70, subdivision 7; 237.762, subdivision

5; 239.761, subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 239.77, subdivision 1;

256B.0913, subdivision 4; 296A.01, subdivisions 7, 8, 14, 19, 22, 26, 28, 35;

325E.21, subdivisions 1b, 2c; 325F.79; 325F.791, subdivisions 1, 5; 325F.792,

subdivision 2; 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; Minnesota Statutes 2025 Supplement, sections 8.37,

subdivisions 3, 5; 41A.09, subdivision 2a; 58B.02, subdivision 8a; 62A.31,

subdivision 1u; 62D.21; 62D.211; 62E.23, subdivisions 1a, 2; 80A.66; 239.761,

subdivisions 3, 4, 5, 6; 296A.01, subdivisions 20, 23, 24; 297I.20, subdivision 7;

proposing coding for new law in Minnesota Statutes, chapters 45A; 48; 52; 53B;

58; 60A; 62A; 62D; 65A; 80A; 82B; 82C; 325E; 325F; 325M; 345; proposing

coding for new law as Minnesota Statutes, chapters 59E; 65C; repealing Minnesota

Statutes 2024, sections 48.158; 53B.69, subdivisions 3b, 3c; 53B.75, subdivisions

1, 2, 3, 4, 5; 56.08; 62J.86, subdivision 2; 62J.88; 62J.96, subdivision 3; 237.065;

237.066; 237.067; 237.071; 237.072; 237.075, subdivisions 1, 2, 3, 4, 5, 6, 7, 8,

9, 10, 11; 237.14; 237.15; 237.16, subdivision 9; 237.22; 237.231; 237.59,

subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 10; 237.66, subdivisions 1, 1a, 1c, 1d, 2, 2a,

3; 237.75; 237.766; 237.768; 237.772; 237.775; 332A.02, subdivision 2; 332B.02,

subdivision 2.

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

ARTICLE 1

COMMERCE FINANCE

Section 1.
new text begin
HEALTH MAINTENANCE ORGANIZATIONS AND COUNTY-BASED

PURCHASERS REGULATION; APPROPRIATION.
new text end

new text begin

$1,750,000 in fiscal year 2028 is appropriated from the general fund to the commissioner

of commerce to regulate health maintenance organizations and county-based purchasers.

new text end

Sec. 2.
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APPROPRIATION REDUCTION.
new text end

new text begin

The commissioner of management and budget must reduce the Department of Health's

fiscal year 2028 general fund appropriation by $1,750,000 and must reduce the Department

of Health's fiscal year 2028 state government special revenue fund appropriation by

$1,836,000 to account for the transfer of health maintenance organization and county-based

purchaser regulatory responsibilities to the commissioner of commerce. These reductions

are ongoing.

new text end

ARTICLE 2

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 3

NONDEPOSITORY INSTITUTIONS

Section 1.

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. 2.

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. 3.

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. 4.

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. 5.

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. 6.

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. 7.

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. 8.

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. 9.

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

56.05 LICENSE; TO BE POSTED.

new text begin

(a)
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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)
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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. 10.

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)
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A residential mortgage originator
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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
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$100,000
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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. 11.

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. 12.

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
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licensed as a prorating agency
deleted text end
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registered as a debt management services

provider or debt settlement services provider
new text end
under the laws of this state
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,
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if the person is

acting within the course and scope of
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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. 13.

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
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(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt

prorater immediately before August 1, 2007; and

deleted text end

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(9)
deleted text end
new text begin
(8)
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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. 14.

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
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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

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(8)
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new text begin
(7)
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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. 15.
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 4

HEALTH PLAN REGULATORY ALIGNMENT

Section 1.

new text begin

[60A.071] SUBSTANTIAL ENROLLMENT GROWTH; NOTIFICATION.

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Subdivision 1.

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Notice required.

new text end

new text begin

(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:

new text end

new text begin

(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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new text begin

(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.

new text end

new text begin

(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.

new text end

new text begin

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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new text begin

(1) the conditions contributing to the insurance company's or nonprofit health service

plan corporation's enrollment growth;

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new text begin

(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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new text begin

(3) the key assumptions impacting the projections and the sensitivity of the projections

to the assumptions; and

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new text begin

(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.

new text end

new text begin

(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.

new text end

Sec. 2.

Minnesota Statutes 2024, section 60A.50, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections
60A.50
to
deleted text begin
60A.592
deleted text end
new text begin
60A.593
new text end
, the terms

in subdivisions 2 to 13 have the meanings given
deleted text begin
them
deleted text end
.

Sec. 3.

Minnesota Statutes 2024, section 60A.50, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
or the

commissioner of health, whichever commissioner otherwise regulates the health organization
deleted text end
.

new text begin

EFFECTIVE DATE.

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new text begin

This section is effective July 1, 2027.

new text end

Sec. 4.

new text begin

[60A.593] PROHIBITED ACTIVITIES.

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new text begin

A domestic health organization that has a total adjusted capital equal to or less than the

domestic health organization's company action level RBC is prohibited from, without

receiving advance approval from the commissioner: (1) increasing the salary or benefits of

an officer or director, or (2) making preferential payment of bonuses, dividends, or other

payments the commissioner determines are preferential.

new text end

Sec. 5.

Minnesota Statutes 2024, section 60A.951, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
for

insurers regulated by the commissioner of commerce, and means the commissioner of health

for insurers regulated by the commissioner of health
deleted text end
.

new text begin

EFFECTIVE DATE.

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new text begin

This section is effective July 1, 2027.

new text end

Sec. 6.

Minnesota Statutes 2024, section 60A.985, subdivision 8, is amended to read:

Subd. 8.

Licensee.

"Licensee" means any person licensed, authorized to operate, or

registered, or required to be licensed, authorized, or registered by the Department of

Commerce
deleted text begin
or the Department of Health
deleted text end
under chapters 59A to 62M, 62Q to 62V, and 64B

to 79A.

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EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 7.

Minnesota Statutes 2024, section 60A.9853, subdivision 1, is amended to read:

Subdivision 1.

Notification to the commissioner.

Each licensee shall notify the

commissioner of commerce
deleted text begin
or commissioner of health, whichever commissioner otherwise

regulates the licensee,
deleted text end
without unreasonable delay but in no event later than five business

days from a determination that a cybersecurity event has occurred when either of the

following criteria has been met:

(1) this state is the licensee's state of domicile, in the case of an insurer, or this state is

the licensee's home state, in the case of a producer, as those terms are defined in chapter

60K and the cybersecurity event has a reasonable likelihood of materially harming:

(i) any consumer residing in this state; or

(ii) any part of the normal operations of the licensee; or

(2) the licensee reasonably believes that the nonpublic information involved is of 250

or more consumers residing in this state and that is either of the following:

(i) a cybersecurity event impacting the licensee of which notice is required to be provided

to any government body, self-regulatory agency, or any other supervisory body pursuant

to any state or federal law; or

(ii) a cybersecurity event that has a reasonable likelihood of materially harming:

(A) any consumer residing in this state; or

(B) any part of the normal operations of the licensee.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 8.

Minnesota Statutes 2024, section 60A.9854, is amended to read:

60A.9854 POWER OF COMMISSIONER.

(a) The commissioner of commerce
deleted text begin
or commissioner of health, whichever commissioner

otherwise regulates the licensee, shall have
deleted text end
new text begin
has
new text end
power to examine and investigate into the

affairs of any licensee to determine whether the licensee has been or is engaged in any

conduct in violation of sections
60A.985
to
60A.9857
. This power is in addition to the

powers which the commissioner has under section
60A.031
. Any such investigation or

examination shall be conducted pursuant to section
60A.031
.

(b) Whenever the commissioner of commerce
deleted text begin
or commissioner of health
deleted text end
has reason to

believe that a licensee has been or is engaged in conduct in this state which violates sections

60A.985
to
60A.9857
, the commissioner of commerce
deleted text begin
or commissioner of health
deleted text end
may take

action that is necessary or appropriate to enforce those sections.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 9.

Minnesota Statutes 2024, section 60B.03, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
of the

state of Minnesota
deleted text end
and, in that commissioner's absence or disability, a deputy or other person

duly designated to act in that commissioner's place.
deleted text begin
In the context of rehabilitation or

liquidation of a health maintenance organization, "commissioner" means the commissioner

of health of the state of Minnesota and, in that commissioner's absence or disability, a deputy

or other person duly designated to act in that commissioner's place.
deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 10.

Minnesota Statutes 2024, section 60G.01, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
, except

that "commissioner" means the commissioner of health for administrative supervision of

health maintenance organizations
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 11.

Minnesota Statutes 2024, section 60G.01, subdivision 4, is amended to read:

Subd. 4.

Department.

"Department" means the Department of Commerce
deleted text begin
, except that

"department" means the Department of Health for administrative supervision of health

maintenance organizations
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 12.

Minnesota Statutes 2024, section 62A.02, subdivision 8, is amended to read:

Subd. 8.

Filing by health carriers for purposes of complying with the certification

requirements of MNsure.

No qualified health plan shall be offered through MNsure until

its form and the premium rates pertaining to the form have been approved by the

commissioner of commerce
deleted text begin
or health, as appropriate,
deleted text end
and the health plan has been determined

to comply with the certification requirements of MNsure in accordance with an agreement

between the commissioners of commerce and health and MNsure.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 13.

Minnesota Statutes 2024, section 62A.021, subdivision 1, is amended to read:

Subdivision 1.

Loss ratio standards.

(a) Notwithstanding section
62A.02
, subdivision

3, relating to loss ratios, and except as otherwise authorized by section
62A.02
, subdivision

3a, for individual policies or certificates, health care policies or certificates shall not be

delivered or issued for delivery to an individual or to a small employer as defined in section

62L.02
, unless the policies or certificates can be expected, as estimated for the entire period

for which rates are computed to provide coverage, to return to Minnesota policyholders and

certificate holders in the form of aggregate benefits not including anticipated refunds or

credits, provided under the policies or certificates, (1) at least 75 percent of the aggregate

amount of premiums earned in the case of policies issued in the small employer market, as

defined in section
62L.02
, subdivision 27, calculated on an aggregate basis; and (2) at least

65 percent of the aggregate amount of premiums earned in the case of each policy form or

certificate form issued in the individual market; calculated on the basis of incurred claims

experience or incurred health care expenses where coverage is provided by a health

maintenance organization on a service rather than reimbursement basis and earned premiums

for the period and according to accepted actuarial principles and practices. Assessments by

the reinsurance association created in chapter 62L and all types of taxes, surcharges, or

assessments created by Laws 1992, chapter 549, or created on or after April 23, 1992, are

included in the calculation of incurred claims experience or incurred health care expenses.

The applicable percentage for policies and certificates issued in the small employer market,

as defined in section
62L.02
, increases by one percentage point on July 1 of each year,

beginning on July 1, 1994, until an 82 percent loss ratio is reached on July 1, 2000. The

applicable percentage for policy forms and certificate forms issued in the individual market

increases by one percentage point on July 1 of each year, beginning on July 1, 1994, until

a 72 percent loss ratio is reached on July 1, 2000. A health carrier that enters a market after

July 1, 1993, does not start at the beginning of the phase-in schedule and must instead

comply with the loss ratio requirements applicable to other health carriers in that market

for each time period. Premiums earned and claims incurred in markets other than the small

employer and individual markets are not relevant for purposes of this section.

(b) All filings of rates and rating schedules shall demonstrate that actual expected claims

in relation to premiums comply with the requirements of this section when combined with

actual experience to date. Filings of rate revisions shall also demonstrate that the anticipated

loss ratio over the entire future period for which the revised rates are computed to provide

coverage can be expected to meet the appropriate loss ratio standards, and aggregate loss

ratio from inception of the policy form or certificate form shall equal or exceed the

appropriate loss ratio standards.

(c) A health carrier that issues health care policies and certificates to individuals or to

small employers, as defined in section
62L.02
, in this state shall file annually its rates, rating

schedule, and supporting documentation including ratios of incurred losses to earned

premiums by policy form or certificate form duration for approval by the commissioner

according to the filing requirements and procedures prescribed by the commissioner. The

supporting documentation shall also demonstrate in accordance with actuarial standards of

practice using reasonable assumptions that the appropriate loss ratio standards can be

expected to be met over the entire period for which rates are computed. The demonstration

shall exclude active life reserves. If the data submitted does not confirm that the health

carrier has satisfied the loss ratio requirements of this section, the commissioner shall notify

the health carrier in writing of the deficiency. The health carrier shall have 30 days from

the date of the commissioner's notice to file amended rates that comply with this section.

If the health carrier fails to file amended rates within the prescribed time, the commissioner

shall order that the health carrier's filed rates for the nonconforming policy form or certificate

form be reduced to an amount that would have resulted in a loss ratio that complied with

this section had it been in effect for the reporting period of the supplement. The health

carrier's failure to file amended rates within the specified time or the issuance of the

commissioner's order amending the rates does not preclude the health carrier from filing an

amendment of its rates at a later time. The commissioner shall annually make the submitted

data available to the public at a cost not to exceed the cost of copying. The data must be

compiled in a form useful for consumers who wish to compare premium charges and loss

ratios.

(d) Each sale of a policy or certificate that does not comply with the loss ratio

requirements of this section is an unfair or deceptive act or practice in the business of

insurance and is subject to the penalties in sections
72A.17
to
72A.32
.

(e)(1) For purposes of this section, health care policies issued as a result of solicitations

of individuals through the mail or mass media advertising, including both print and broadcast

advertising, shall be treated as individual policies.

(2) For purposes of this section, (i) "health care policy" or "health care certificate" is a

health plan as defined in section
62A.011
; and (ii) "health carrier" has the meaning given

in section
62A.011
and includes all health carriers delivering or issuing for delivery health

care policies or certificates in this state or offering these policies or certificates to residents

of this state.

(f) The loss ratio phase-in as described in paragraph (a) does not apply to individual

policies and small employer policies issued by a health plan company that is assessed less

than three percent of the total annual amount assessed by the Minnesota Comprehensive

Health Association. These policies must meet a 68 percent loss ratio for individual policies,

a 71 percent loss ratio for small employer policies with fewer than ten employees, and a 75

percent loss ratio for all other small employer policies.

(g) Notwithstanding paragraphs (a) and (f), the loss ratio shall be 60 percent for a health

plan as defined in section
62A.011
, offered by an insurance company licensed under chapter

60A that is assessed less than ten percent of the total annual amount assessed by the

Minnesota Comprehensive Health Association. For purposes of the percentage calculation

of the association's assessments, an insurance company's assessments include those of its

affiliates.

(h) The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of commerce
deleted text begin
and health shall each
deleted text end
new text begin
must
new text end
annually

issue a public report listing, by health plan company, the actual loss ratios experienced in

the individual and small employer markets in this state
deleted text begin
by the health plan companies that

the commissioners respectively regulate. The commissioners shall coordinate release of

these reports so as to release them as a joint report or as separate reports issued the same

day
deleted text end
. The report or reports shall be released no later than June 1 for loss ratios experienced

for the preceding calendar year. Health plan companies shall provide to the
deleted text begin
commissioners
deleted text end
new text begin

commissioner
new text end
any information requested by the
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
for purposes

of this paragraph.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 14.

Minnesota Statutes 2024, section 62A.61, is amended to read:

62A.61 DISCLOSURE OF METHODS USED BY HEALTH CARRIERS TO

DETERMINE USUAL AND CUSTOMARY FEES.

(a) A health carrier that bases reimbursement to health care providers upon a usual and

customary fee must maintain in its office a copy of a description of the methodology used

to calculate fees including at least the following:

(1) the frequency of the determination of usual and customary fees;

(2) a general description of the methodology used to determine usual and customary

fees; and

(3) the percentile of usual and customary fees that determines the maximum allowable

reimbursement.

(b) A health carrier must provide a copy of the information described in paragraph (a)

to the commissioner of health or the commissioner of commerce, upon request.

(c) The
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commissioner of health or the
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commissioner of commerce
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, as appropriate,
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may

use
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to enforce this section
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any enforcement powers otherwise available to the commissioner

with respect to the health carrier
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to enforce this section
new text end
. The commissioner of
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health or
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commerce
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, as appropriate,
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may require health carriers to provide the information required

under this section and may use any powers granted under other laws relating to the regulation

of health carriers to enforce compliance.

(d) For purposes of this section, "health carrier" has the meaning given in section

62A.011
.

(e) "Usual and customary" means the normal charge, in the absence of insurance, of the

provider for a service or article, but not more than the prevailing charge in the area for like

service or article. A "like service" is the same nature and duration, requires the same skill,

and is performed by a provider of similar training and experience. A "like article" is one

that is identically or substantially equivalent. "Area" means the municipality or, in the case

of a large city, a subdivision of the city, in which the service or article is actually provided

or a greater area as is necessary to obtain a representative cross-section of charges for like

service or article.

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EFFECTIVE DATE.

new text end

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This section is effective July 1, 2027.

new text end

Sec. 15.

Minnesota Statutes 2024, section 62A.65, subdivision 7, is amended to read:

Subd. 7.

Short-term coverage.

(a) For purposes of this section, "short-term coverage"

means an individual health plan that:

(1) is issued to provide coverage for a period of 185 days or less, except that the health

plan may permit coverage to continue until the end of a period of hospitalization for a

condition for which the covered person was hospitalized on the day that coverage would

otherwise have ended;

(2) is nonrenewable, provided that the health carrier may provide coverage for one or

more subsequent periods that satisfy clause (1), if the total of the periods of coverage do

not exceed a total of 365 days out of any 555-day period, plus any additional days covered

as a result of hospitalization on the day that a period of coverage would otherwise have

ended;

(3) does not cover any preexisting conditions, including ones that originated during a

previous identical policy or contract with the same health carrier where coverage was

continuous between the previous and the current policy or contract; and

(4) is available with an immediate effective date without underwriting upon receipt of

a completed application indicating eligibility under the health carrier's eligibility

requirements, provided that coverage that includes optional benefits may be offered on a

basis that does not meet this requirement.

(b) Short-term coverage is not subject to subdivisions 2 and 5. Short-term coverage may

exclude as a preexisting condition any injury, illness, or condition for which the covered

person had medical treatment, symptoms, or any manifestations before the effective date

of the coverage, but dependent children born or placed for adoption during the policy period

must not be subject to this provision.

(c) Notwithstanding subdivision 3, and section
62A.021
, a health carrier may combine

short-term coverage with its most commonly sold individual qualified plan, as defined in

section
62E.02
, other than short-term coverage, for purposes of complying with the loss

ratio requirement.

(d) The 365-day coverage limitation provided in paragraph (a) applies to the total number

of days of short-term coverage that covers a person, regardless of the number of policies,

contracts, or health carriers that provide the coverage. A written application for short-term

coverage must ask the applicant whether the applicant has been covered by short-term

coverage by any health carrier within the 555 days immediately preceding the effective date

of the coverage being applied for. Short-term coverage issued in violation of the 365-day

limitation is valid until the end of its term and does not lose its status as short-term coverage,

in spite of the violation. A health carrier that knowingly issues short-term coverage in

violation of the 365-day limitation is subject to the administrative penalties otherwise

available to the commissioner of commerce
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or the commissioner of health, as appropriate
deleted text end
.

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EFFECTIVE DATE.

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This section is effective July 1, 2027.

new text end

Sec. 16.

Minnesota Statutes 2024, section 62A.65, subdivision 8, is amended to read:

Subd. 8.

Cessation of individual business.

Notwithstanding the provisions of

subdivisions 1 to 7, a health carrier may elect to cease doing business in the individual health

plan market in this state if it complies with the requirements of this subdivision. For purposes

of this section, "cease doing business" means to discontinue issuing new individual health

plans and to refuse to renew all of the health carrier's existing individual health plans issued

in this state whose terms permit refusal to renew under the circumstances specified in this

subdivision. This subdivision does not permit cancellation of an individual health plan,

unless the terms of the health plan permit cancellation under the circumstances specified in

this subdivision. A health carrier electing to cease doing business in the individual health

plan market in this state shall notify the commissioner 180 days prior to the effective date

of the cessation. Within 30 days after the termination, the health carrier shall submit to the

commissioner a complete list of policyholders that have been terminated. The cessation of

business does not include the failure of a health carrier to offer or issue new business in the

individual health plan market or continue an existing product line in that market, provided

that a health carrier does not terminate, cancel, or fail to renew its current individual health

plan business. A health carrier electing to cease doing business in the individual health plan

market shall provide 120 days' written notice to each policyholder covered by an individual

health plan issued by the health carrier. This notice must also inform each policyholder of

the existence of the Minnesota Comprehensive Health Association, the requirements for

being accepted, the procedures for applying for coverage, and the telephone numbers at the
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Department of Health and the
deleted text end
Department of Commerce for information about private

individual or family health coverage. A health carrier that ceases to write new business in

the individual health plan market shall continue to be governed by this section with respect

to continuing individual health plan business conducted by the health carrier. A health carrier

that ceases to do business in the individual health plan market after July 1, 1994, is prohibited

from writing new business in the individual health plan market in this state for a period of

five years from the date of notice to the commissioner. This subdivision applies to any

health maintenance organization that ceases to do business in the individual health plan

market in one service area with respect to that service area only. Nothing in this subdivision

prohibits an affiliated health maintenance organization from continuing to do business in

the individual health plan market in that same service area. The right to refuse to renew an

individual health plan under this subdivision does not apply to individual health plans issued

on a guaranteed renewable basis that does not permit refusal to renew under the circumstances

specified in this subdivision.

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EFFECTIVE DATE.

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This section is effective July 1, 2027.

new text end

Sec. 17.

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[62D.015] REGULATORY DUTIES; TRANSFER.

new text end

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Subdivision 1.

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Transfer and restructuring.

new text end

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(a) The regulatory oversight with respect

to health maintenance organizations transfers from the commissioner of health to the

commissioner of commerce on July 1, 2027.

new text end

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(b) The agency restructuring under this section must be conducted in accordance with

sections 15.039 and 43A.045.

new text end

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Subd. 2.

new text end

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Succession; employees; liability.

new text end

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(a) Employees related to the functions

assigned to the commissioner of health are transferred to the Department of Commerce 30

days after the date the commissioner of health approves the transfer.

new text end

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(b) An employee transferred under paragraph (a):

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(1) must not have the employee's employment status or job classification altered as a

result of the transfer;

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(2) if represented by an exclusive representative before the transfer, remains represented

by the same exclusive representative after the transfer occurs;

new text end

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(3) if an applicable collective bargaining agreement with an exclusive representative

was effective before the transfer, remains subject to the collective bargaining agreement

for the remainder of the agreement's term; and

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(4) if employed in a temporary unclassified position, the total length of time that the

employee has served in the appointment includes all time served in the appointment at the

transferring agency and the time served in the appointment at the department. An employee

in a temporary unclassified position who was hired by a transferring agency through an

open competitive selection process in accordance with a policy enacted by the commissioner

of management and budget is considered to have been hired through an open competitive

selection process after the transfer.

new text end

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(c) The state must meet and negotiate with the exclusive representatives of transferred

employees regarding proposed changes that affect or relate to the transferred employees'

terms and conditions of employment to the extent that the proposed changes are not addressed

in the applicable collective bargaining agreement.

new text end

new text begin

(d) If the state transfers ownership or control of a department facility, service, or operation

to a private or public entity by subcontracting, sale, assignment, lease, or other transfer, the

state must require as a written condition of the transfer of ownership or control:

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(1) an employee who performs work in the facility, service, or operation must be offered

employment with the entity acquiring ownership or control before the entity offers

employment to another individual who was not employed by the transferring agency at the

time the transfer occurs; and

new text end

new text begin

(2) the entity acquiring ownership or control is prohibited from reducing the transferred

employee's wage and benefit standards until the collective bargaining agreement in effect

at the time the transfer occurs expires or for a period of two years after the transfer occurs,

whichever is longer.

new text end

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(e) The state of Minnesota and the state's officers or agents are not liable for and are not

subject to a cause of action arising from the action or inaction of an entity acquiring

ownership or control of a department facility, service, or operation.

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EFFECTIVE DATE.

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This section is effective July 1, 2027.

new text end

Sec. 18.

Minnesota Statutes 2024, section 62D.08, subdivision 1, is amended to read:

Subdivision 1.

Notice of changes.

A health maintenance organization shall, unless

otherwise provided for by rules adopted by the commissioner of
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health
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commerce
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, file

notice with the commissioner of
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health prior to any modification of
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new text begin
commerce before

modifying
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the operations or documents described in the information submitted under
new text begin
section

62D.03, subdivision 4,
new text end
clauses (a), (b), (e), (f), (g), (i), (j), (l), (m), (n), (o), (p), (q), (r), (s),

and (t)
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of section
62D.03, subdivision 4
deleted text end
. If the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
does not

disapprove of the filing within 60 days, it shall be deemed approved and may be implemented

by the health maintenance organization.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 19.

Minnesota Statutes 2024, section 62D.08, subdivision 2, is amended to read:

Subd. 2.

Annual report required.

Every health maintenance organization shall annually,

on or before April 1, file a verified report with the commissioner of
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health
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new text begin
commerce
new text end

covering the preceding calendar year. However, utilization data required under subdivision

3, clause (c), shall be filed on or before July 1.

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EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 20.

Minnesota Statutes 2024, section 62D.08, subdivision 3, is amended to read:

Subd. 3.

Report requirements.

deleted text begin
Such
deleted text end
new text begin
The
new text end
report shall be
new text begin
submitted
new text end
on forms prescribed

by the commissioner of
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health,
deleted text end
new text begin
commerce
new text end
and shall include:

(a) a financial statement of the organization, including its balance sheet and receipts and

disbursements for the preceding year certified by an independent certified public accountant,

reflecting at least (1) all prepayment and other payments received for health care services

rendered, (2) expenditures to all providers, by classes or groups of providers, and insurance

companies or nonprofit health service plan corporations engaged to fulfill obligations arising

out of the health maintenance contract, (3) expenditures for capital improvements, or

additions thereto, including but not limited to construction, renovation or purchase of

facilities and capital equipment, and (4) a supplementary statement of assets, liabilities,

premium revenue, and expenditures for risk sharing business under section
62D.04,

subdivision 1
, on forms prescribed by the commissioner;

(b) the number of new enrollees enrolled during the year, the number of group enrollees

and the number of individual enrollees as of the end of the year and the number of enrollees

terminated during the year;

(c) a summary of information compiled pursuant to section
62D.04, subdivision 1
, clause

(c), in such form as may be required by the commissioner of
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health
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commerce
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;

(d) a report of the names and addresses of all persons set forth in section
62D.03,

subdivision 4
, clause (c), who were associated with the health maintenance organization or

the major participating entity during the preceding year, and the amount of wages, expense

reimbursements, or other payments to such individuals for services to the health maintenance

organization or the major participating entity, as those services relate to the health

maintenance organization, including a full disclosure of all financial arrangements during

the preceding year required to be disclosed pursuant to section
62D.03, subdivision 4
, clause

(d);

(e) a separate report addressing health maintenance contracts sold to individuals covered

by Medicare, title XVIII of the Social Security Act, as amended, including the information

required under section
62D.30, subdivision 6
;

(f) data on the number of complaints received and the category of each complaint as

defined by the commissioner. The categories must include access, communication and

behavior, health plan administration, facilities and environment, coordination of care, and

technical competence and appropriateness. The commissioner, in consultation with interested

stakeholders, shall define complaint categories to be used by each health maintenance

organization by July 1, 2017, and the categories must be used by each health maintenance

organization beginning calendar year 2018; and

(g) such other information relating to the performance of the health maintenance

organization as is reasonably necessary to enable the commissioner of
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health
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new text begin
commerce
new text end
to

carry out the duties under sections
62D.01
to
62D.30
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 21.

Minnesota Statutes 2024, section 62D.08, subdivision 7, is amended to read:

Subd. 7.

Consistent administrative expenses and investment income reporting.

(a)

Every health maintenance organization must directly allocate administrative expenses to

specific lines of business or products when such information is available. Remaining expenses

that cannot be directly allocated must be allocated based on other methods, as recommended

by the Advisory Group on Administrative Expenses. Health maintenance organizations

must submit this information, including administrative expenses for dental services, using

the reporting template provided by the commissioner of
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health
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commerce
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.

(b) Every health maintenance organization must allocate investment income based on

cumulative net income over time by business line or product and must submit this

information, including investment income for dental services, using the reporting template

provided by the commissioner of
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health
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new text begin
commerce
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 22.

Minnesota Statutes 2024, section 62D.08, is amended by adding a subdivision to

read:

new text begin

Subd. 8.

new text end

new text begin

Information sharing.

new text end

new text begin

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.

new text end

Sec. 23.

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[62D.085] SUBSTANTIAL ENROLLMENT GROWTH; NOTICE.

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new text begin

Subdivision 1.

new text end

new text begin

Notice required.

new text end

new text begin

(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:

new text end

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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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new text begin

(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.

new text end

new text begin

(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.

new text end

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Subd. 2.

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Additional information.

new text end

new text begin

(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:

new text end

new text begin

(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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new text begin

(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.

new text end

new text begin

(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.

new text end

Sec. 24.

Minnesota Statutes 2024, section 62D.12, subdivision 1, is amended to read:

Subdivision 1.

False representations.

No health maintenance organization or

representative thereof may cause or knowingly permit the use of advertising or solicitation

which is untrue or misleading, or any form of evidence of coverage which is deceptive.

Each health maintenance organization
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shall be
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new text begin
is
new text end
subject to sections
72A.17
to
72A.32
deleted text begin
,

relating to the regulation of trade practices, except (a) to the extent that the nature of a health

maintenance organization renders such sections clearly inappropriate and (b) that enforcement

shall be by the commissioner of health and not by the commissioner of commerce
deleted text end
. Every

health maintenance organization
deleted text begin
shall be
deleted text end
new text begin
is
new text end
subject to sections
8.31
and
325F.69
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 25.

Minnesota Statutes 2024, section 62D.124, subdivision 5, is amended to read:

Subd. 5.

Provider networks.

The
deleted text begin
commissioner of health, the
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commissioner of

commerce
deleted text begin
,
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and the commissioner of human services shall merge reporting requirements

for health maintenance organizations and county-based purchasing plans related to Minnesota

Department of
deleted text begin
Health
deleted text end
new text begin
Commerce
new text end
oversight of network adequacy under this section and the

provider network list reported to the Department of Human Services under Minnesota Rules,

part
4685.2100
. The commissioners shall work with health maintenance organizations and

county-based purchasing plans to ensure that the report merger is done in a manner that

simplifies health maintenance organization and county-based purchasing plan reporting

processes.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 26.

Minnesota Statutes 2025 Supplement, section 62D.21, is amended to read:

62D.21 FEES.

Every health maintenance organization subject to sections
62D.01
to
62D.30
shall pay

to the commissioner of
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health
deleted text end
new text begin
commerce
new text end
the following fees:

(1) filing an application for a certificate of authority: $10,000;

(2) filing an amendment to a certificate of authority: $125;

(3) filing each annual report: $400;

(4) filing each quarterly report: $200; and

(5) filing annual plan review documents, amendments to plan documents, and quality

plans: $125.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 27.

Minnesota Statutes 2025 Supplement, section 62D.211, is amended to read:

62D.211 RENEWAL FEE.

Each health maintenance organization subject to sections
62D.01
to
62D.30
shall submit

to the commissioner of
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health
deleted text end
new text begin
commerce
new text end
each year before June 15 a certificate of authority

renewal fee in the amount of $30,000 each plus 88 cents per person enrolled in the health

maintenance organization on December 31 of the preceding year.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 28.

new text begin

[62D.212] HEALTH MAINTENANCE ORGANIZATION REGULATION

ACCOUNT.

new text end

new text begin

(a) A health maintenance organization regulation account is established as a separate

account in the special revenue fund in the state treasury. The commissioner of commerce

must credit to the account filing fees and renewal fees collected under sections 62D.21 and

62D.211, appropriations and transfers, and other revenue related to the activities identified

in paragraph (b). Earnings, including interest, dividends, other earnings arising from the

account's assets, and remaining money from fiscal years occurring before July 1, 2027, must

be credited to the account. The commissioner of commerce must manage the account.

new text end

new text begin

(b) Money in the account is appropriated to the commissioner of commerce to administer

this chapter and to reimburse the department's costs incurred to administer this section.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 29.

Minnesota Statutes 2024, section 62D.221, subdivision 1, is amended to read:

Subdivision 1.

Insurance provisions applicable to health maintenance

organizations.

Health maintenance organizations are subject to sections
60A.135
,
60A.136
,

60A.137
,
60A.16
,
60A.161
,
60D.17
,
60D.18
, and
60D.20
and must comply with the

provisions of these sections applicable to insurers. In applying these sections to health

maintenance organizations, "commissioner" means the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
.

Health maintenance organizations are subject to Minnesota Rules, chapter 2720, as applicable

to sections
60D.17
,
60D.18
, and
60D.20
, and must comply with the provisions of chapter

2720 applicable to insurers, unless the commissioner of
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health
deleted text end
new text begin
commerce
new text end
adopts rules to

implement this subdivision.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 30.

Minnesota Statutes 2024, section 62D.221, subdivision 2, is amended to read:

Subd. 2.

Statement.

In addition to the conditions in section
60D.17, subdivision 1
,

subjecting a health maintenance organization to filing requirements, no person other than

the issuer shall acquire all or substantially all of the assets of a domestic nonprofit health

maintenance organization through any means unless at the time the offer, request, or

invitation is made or the agreement is entered into the person has filed with the commissioner

and has sent to the health maintenance organization a statement containing the information

required in section
60D.17
and the offer, request, invitation, agreement, or acquisition has

been approved by the commissioner of
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health
deleted text end
new text begin
commerce
new text end
in the manner prescribed in section

60D.17
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 31.

Minnesota Statutes 2024, section 62E.11, subdivision 9, is amended to read:

Subd. 9.

Special assessment upon termination of individual health coverage.

new text begin
(a)
new text end

Each contributing member that terminates individual health coverage for reasons other than
deleted text begin

(a)
deleted text end
new text begin
(1)
new text end
nonpayment of premium;
deleted text begin
(b)
deleted text end
new text begin
(2)
new text end
failure to make co-payments;
deleted text begin
(c)
deleted text end
new text begin
(3)
new text end
enrollee moving

out of the area served; or
deleted text begin
(d)
deleted text end
new text begin
(4)
new text end
a materially false statement or misrepresentation by the

enrollee in the application for membership; and does not provide or arrange for replacement

coverage that meets the requirements of section
62D.121
; shall pay a special assessment to

the state plan based upon the number of terminated individuals who join the comprehensive

health insurance plan as authorized under section
62E.14, subdivisions 1, paragraph (d)
,

and 6. Such a contributing member shall pay the association an amount equal to the average

cost of an enrollee in the state plan in the year in which the member terminated enrollees

multiplied by the total number of terminated enrollees who enroll in the state plan.

new text begin

(b)
new text end
The average cost of an enrollee in the state comprehensive health insurance plan

shall be determined by dividing the state plan's total annual losses by the total number of

enrollees from that year. This cost will be assessed to the contributing member who has

terminated health coverage before the association makes the annual determination of each

contributing member's liability as required under this section.

new text begin

(c)
new text end
In the event that the contributing member is terminating health coverage because of

a loss of health care providers, the commissioner may review whether or not the special

assessment established under this subdivision will have an adverse impact on the contributing

member or its enrollees or insureds, including but not limited to causing the contributing

member to fall below statutory net worth requirements. If the commissioner determines that

the special assessment would have an adverse impact on the contributing member or its

enrollees or insureds, the commissioner may adjust the amount of the special assessment,

or establish alternative payment arrangements to the state plan. For health maintenance

organizations regulated under chapter 62D, the commissioner of
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health
deleted text end
new text begin
commerce
new text end
shall

make the determination regarding any adjustment in the special assessment
deleted text begin
and shall transmit

that determination to the commissioner of commerce
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 32.

Minnesota Statutes 2024, section 62E.11, subdivision 13, is amended to read:

Subd. 13.

State funding; effect on premium rates of members.

In approving the

premium rates as required in sections
62A.65, subdivision 3
; and
62L.08, subdivision 8
,

the
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of
deleted text begin
health and
deleted text end
commerce shall ensure that any appropriation

to reduce the annual assessment made on the contributing members to cover the costs of

the Minnesota comprehensive health insurance plan as required under this section is reflected

in the premium rates charged by each contributing member.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 33.

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.

new text begin

(c) A state agency that purchases health care services, provides oversight over health

insurance rates, collects health care taxes, 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.

new text end

new text begin

(d) The commissioner of commerce may request unique or custom data sets from a state

agency in a request under paragraph (c). The state agency may charge the commissioner of

commerce 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.

new text end

new text begin

(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.

new text end

Sec. 34.

Minnesota Statutes 2024, section 62J.60, subdivision 5, is amended to read:

Subd. 5.

Annual reporting.

As part of an annual filing made with the commissioner of
deleted text begin

health or
deleted text end
commerce
deleted text begin
on or after January 1, 2003
deleted text end
, a group purchaser shall certify compliance

with this section and shall submit to the commissioner of
deleted text begin
health or
deleted text end
commerce a copy of the

Minnesota uniform health care identification card used by the group purchaser.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 35.

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
new text begin
must share reported data with the commissioner of

health and
new text end
, 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. 36.

Minnesota Statutes 2024, section 62L.02, subdivision 8, is amended to read:

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
for

health carriers subject to the jurisdiction of the Department of Commerce or the commissioner

of health for health carriers subject to the jurisdiction of the Department of Health, or the

relevant commissioner's designated representative. For purposes of sections
62L.13
to

62L.22
, "commissioner" means the commissioner of commerce or that commissioner's

designated representative
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 37.

Minnesota Statutes 2024, section 62L.08, subdivision 11, is amended to read:

Subd. 11.

Loss ratio standards.

Notwithstanding section
62A.02, subdivision 3
, relating

to loss ratios, each policy or contract form used with respect to a health benefit plan offered,

or issued in the small employer market, is subject, beginning July 1, 1993, to section
62A.021
.
deleted text begin

The commissioner of health has, with respect to carriers under that commissioner's

jurisdiction, all of the powers of the commissioner of commerce under that section.
deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 38.

Minnesota Statutes 2024, section 62L.09, subdivision 3, is amended to read:

Subd. 3.

Reentry prohibition.

(a) Except as otherwise provided in paragraph (b), a

health carrier that ceases to do business in the small employer market after July 1, 1993, is

prohibited from writing new business in the small employer market in this state for a period

of five years from the date of notice to the commissioner. This subdivision applies to any

health maintenance organization that ceases to do business in the small employer market

in one service area with respect to that service area only. Nothing in this subdivision prohibits

an affiliated health maintenance organization from continuing to do business in the small

employer market in that same service area.

(b) The commissioner of commerce
deleted text begin
or the commissioner of health
deleted text end
may permit a health

carrier that ceases to do business in the small employer market in this state after July 1,

1993, to begin writing new business in the small employer market if:

(1) since the carrier ceased doing business in the small employer market, legislative

action has occurred that has significantly changed the effect on the carrier of its decision to

cease doing business in the small employer market; and

(2) the commissioner deems it appropriate.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 39.

Minnesota Statutes 2024, section 62L.10, subdivision 4, is amended to read:

Subd. 4.

Review of premium rates.

The commissioner shall regulate premium rates

charged or proposed to be charged by all health carriers in the small employer market under

section
62A.02
.
deleted text begin
The commissioner of health has, with respect to carriers under that

commissioner's jurisdiction, all of the powers of the commissioner of commerce under that

section.
deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 40.

Minnesota Statutes 2024, section 62L.11, subdivision 2, is amended to read:

Subd. 2.

Enforcement powers.

The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of
deleted text begin
health and
deleted text end

commerce
deleted text begin
each
deleted text end
has
new text begin
,
new text end
for purposes of this chapter
new text begin
,
new text end
all of
deleted text begin
each
deleted text end
new text begin
the
new text end
commissioner's
deleted text begin
respective
deleted text end

powers under other chapters that are applicable to
deleted text begin
their respective
deleted text end
new text begin
the commissioner's
new text end
duties

under this chapter.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 41.

Minnesota Statutes 2024, section 62M.11, is amended to read:

62M.11 COMPLAINTS TO COMMERCE
deleted text begin
OR HEALTH
deleted text end
.

Notwithstanding the provisions of this chapter, an enrollee may file a complaint regarding

an adverse determination directly to the commissioner
deleted text begin
responsible for regulating the

utilization review organization
deleted text end
new text begin
of commerce
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 42.

Minnesota Statutes 2024, section 62Q.01, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means
deleted text begin
the commissioner of health for purposes

of regulating health maintenance organizations, and community integrated service networks,

or
deleted text end
the commissioner of commerce for purposes of regulating
deleted text begin
all other
deleted text end
health plan companies.

For all other purposes, "commissioner" means the commissioner of health.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 43.

Minnesota Statutes 2024, section 62Q.106, is amended to read:

62Q.106 DISPUTE RESOLUTION BY COMMISSIONER.

(a) A complainant may at any time submit a complaint to the
deleted text begin
appropriate
deleted text end
commissioner

to investigate. After investigating a complaint, or reviewing a company's decision, the
deleted text begin

appropriate
deleted text end
commissioner may order a remedy as authorized under chapter 45, 60A, or 62D.

(b) In investigating a complaint filed against a health maintenance organization regarding

a vulnerable adult, upon request, the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
must interview at

least one family member of the complainant or the subject of the complaint. If the

complainant or the subject of the complaint does not want any family members to be

interviewed, this information will be included in the investigative file.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 44.

Minnesota Statutes 2024, section 62Q.188, subdivision 2, is amended to read:

Subd. 2.

Flexible benefits plan.

Notwithstanding any provision of this chapter, chapter

363A, or any other law to the contrary, a health plan company may offer, sell, issue, and

renew a health plan that is a flexible benefits plan under this section if the following

requirements are satisfied:

(1) the health plan must be offered in compliance with the laws of this state, except as

otherwise permitted in this section;

(2) the health plan must be designed to enable covered persons to better manage costs

and coverage options through the use of co-pays, deductibles, and other cost-sharing

arrangements;

(3) the health plan may modify or exclude any or all coverages of benefits that would

otherwise be required by law, except for maternity benefits and other benefits required under

federal law;

(4) each health plan and plan's premiums must be approved by the commissioner of
deleted text begin

health or
deleted text end
commerce,
deleted text begin
whichever is appropriate under section
62Q.01, subdivision 2
,
deleted text end
but
deleted text begin

neither
deleted text end
new text begin
the
new text end
commissioner may
new text begin
not
new text end
disapprove a plan on the grounds of a modification or

exclusion permitted under clause (3); and

(5) prior to the sale of the health plan, the purchaser must be given a written list of the

coverages otherwise required by law that are modified or excluded in the health plan. The

list must include a description of each coverage in the list and indicate whether the coverage

is modified or excluded. If coverage is modified, the list must describe the modification.

The list may, but is not required to, also list any or all coverages otherwise required by law

that are included in the health plan and indicate that they are included. The health plan

company must require that a copy of this written list be provided, prior to the effective date

of the health plan, to each enrollee or employee who is eligible for health coverage under

the plan.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 45.

Minnesota Statutes 2024, section 62Q.37, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

meanings given them.

(b) "Commissioner" means the commissioner of
deleted text begin
health for purposes of regulating health

maintenance organizations and community integrated service networks, the commissioner

of
deleted text end
commerce for purposes of regulating
new text begin
health maintenance organizations and
new text end
nonprofit

health service plan corporations, or the commissioner of human services for the purpose of

contracting with managed care organizations serving persons enrolled in programs under

chapter 256B or 256L.

(c) "Health plan company" means (1) a nonprofit health service plan corporation operating

under chapter 62C; (2) a health maintenance organization operating under chapter 62D; (3)

a community integrated service network operating under chapter 62N; or (4) a managed

care organization operating under chapter 256B or 256L.

(d) "Nationally recognized independent organization" means (1) an organization that

sets specific national standards governing health care quality assurance processes, utilization

review, provider credentialing, marketing, and other topics covered by this chapter and

other chapters and audits and provides accreditation to those health plan companies that

meet those standards. The American Accreditation Health Care Commission (URAC), the

National Committee for Quality Assurance (NCQA), the Joint Commission on Accreditation

of Healthcare Organizations (JCAHO), and the Accreditation Association for Ambulatory

Health Care (AAAHC) are, at a minimum, defined as nationally recognized independent

organizations; and (2) the Centers for Medicare and Medicaid Services for purposes of

reviews or audits conducted of health plan companies under Part C of Title XVIII of the

Social Security Act or under section 1876 of the Social Security Act.

(e) "Performance standard" means those standards relating to quality management and

improvement, access and availability of service, utilization review, provider selection,

provider credentialing, marketing, member rights and responsibilities, complaints, appeals,

grievance systems, enrollee information and materials, enrollment and disenrollment,

subcontractual relationships and delegation, confidentiality, continuity and coordination of

care, assurance of adequate capacity and services, coverage and authorization of services,

practice guidelines, health information systems, and financial solvency.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 46.

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
deleted text begin
, beginning June 1, 2021
deleted text end
, the commissioner of commerce
deleted text begin
, in

consultation with the commissioner of health,
deleted text end
shall submit a report on compliance and

oversight to the chairs and ranking minority members of the legislative committees with

jurisdiction over health and commerce. The report must:

(1) describe the commissioner's process for reviewing health plan company compliance

with United States Code, title 42, section 18031(j), any federal regulations or guidance

relating to compliance and oversight, and compliance with this section and section
62Q.53
;

(2) identify any enforcement actions taken by either commissioner during the preceding

12-month period regarding compliance with parity for mental health and substance use

disorders benefits under state and federal law, summarizing the results of any market conduct

examinations. The summary must include: (i) the number of formal enforcement actions

taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the

subject matter of each enforcement action, including quantitative and nonquantitative

treatment limitations;

(3) detail any corrective action taken by either commissioner to ensure health plan

company compliance with this section, section
62Q.53
, and United States Code, title 42,

section 18031(j); and

(4) describe the information provided by either commissioner to the public about

alcoholism, mental health, or chemical dependency parity protections under state and federal

law.

The report must be written in nontechnical, readily understandable language and must be

made available to the public by, among other means as the commissioners find appropriate,

posting the report on department websites. Individually identifiable information must be

excluded from the report, consistent with state and federal privacy protections.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 47.

Minnesota Statutes 2024, section 62Q.51, subdivision 3, is amended to read:

Subd. 3.

Rate approval.

The premium rates and cost sharing requirements for each

option must be submitted to
deleted text begin
the commissioner of health or
deleted text end
the commissioner of commerce

as required by law. A health plan that includes lower enrollee cost sharing for services

provided by network providers than for services provided by out-of-network providers, or

lower enrollee cost sharing for services provided with prior authorization or second opinion

than for services provided without prior authorization or second opinion, qualifies as a

point-of-service option.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 48.

Minnesota Statutes 2024, section 62Q.556, subdivision 3, is amended to read:

Subd. 3.

Annual data reporting.

(a) Beginning April 1, 2024, a health plan company

must report annually to the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
:

(1) the total number of claims and total billed and paid amounts for nonparticipating

provider services, by service and provider type, submitted to the health plan in the prior

calendar year; and

(2) the total number of enrollee complaints received regarding the rights and protections

established by the No Surprises Act in the prior calendar year.

(b) The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of commerce
deleted text begin
and health
deleted text end
shall develop the form

and manner for health plan companies to comply with paragraph (a).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 49.

Minnesota Statutes 2024, section 62Q.556, subdivision 4, is amended to read:

Subd. 4.

Enforcement.

(a) Any provider or facility, including a health care provider or

facility pursuant to section
62A.63, subdivision 2
, or
62J.03, subdivision 8
, that is subject

to the relevant provisions of the No Surprises Act is subject to the requirements of this

section and section
62J.811
.

(b) The commissioner of commerce
deleted text begin
or health
deleted text end
shall enforce this section.

(c) If a health-related licensing board has cause to believe that a provider has violated

this section, it may further investigate and enforce the provisions of this section pursuant

to chapter 214.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 50.

Minnesota Statutes 2024, section 62Q.69, subdivision 2, is amended to read:

Subd. 2.

Procedures for filing a complaint.

(a) A complainant may submit a complaint

to a health plan company either by telephone or in writing. If a complaint is submitted orally

and the resolution of the complaint, as determined by the complainant, is partially or wholly

adverse to the complainant, or the oral complaint is not resolved to the satisfaction of the

complainant, by the health plan company within ten days of receiving the complaint, the

health plan company must inform the complainant that the complaint may be submitted in

writing. The health plan company must also offer to provide the complainant with any

assistance needed to submit a written complaint, including an offer to complete the complaint

form for a complaint that was previously submitted orally and promptly mail the completed

form to the complainant for the complainant's signature. At the complainant's request, the

health plan company must provide the assistance requested by the complainant. The

complaint form must include the following information:

(1) the telephone number of the health plan company member services or other

departments or persons equipped to advise complainants on complaint resolution;

(2) the address to which the form must be sent;

(3) a description of the health plan company's internal complaint procedure and the

applicable time limits; and

(4) the toll-free telephone number of
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce

and notification that the complainant has the right to submit the complaint at any time to

the
deleted text begin
appropriate
deleted text end
commissioner for investigation.

(b) Upon receipt of a written complaint, the health plan company must notify the

complainant within ten business days that the complaint was received, unless the complaint

is resolved to the satisfaction of the complainant within the ten business days.

(c) Each health plan company must provide, in the member handbook, subscriber contract,

or certification of coverage, a clear and concise description of how to submit a complaint

and a statement that, upon request, assistance in submitting a written complaint is available

from the health plan company.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 51.

Minnesota Statutes 2024, section 62Q.69, subdivision 3, is amended to read:

Subd. 3.

Notification of complaint decisions.

(a) The health plan company must notify

the complainant in writing of its decision and the reasons for it as soon as practical but in

no case later than 30 days after receipt of a written complaint. If the health plan company

cannot make a decision within 30 days due to circumstances outside the control of the health

plan company, the health plan company may take up to 14 additional days to notify the

complainant of its decision. If the health plan company takes any additional days beyond

the initial 30-day period to make its decision, it must inform the complainant, in advance,

of the extension and the reasons for the extension.

(b) For group health plans, if the decision is partially or wholly adverse to the

complainant, the notification must inform the complainant of the right to appeal the decision

to the health plan company's internal appeal process described in section
62Q.70
and the

procedure for initiating an appeal.

(c) For individual health plans, if the decision is partially or wholly adverse to the

complainant, the notification must inform the complainant of the right to submit the complaint

decision to the external review process described in section
62Q.73
and the procedure for

initiating the external review process. Notwithstanding the provisions in this subdivision,

a health plan company offering individual coverage may instead follow the process for

group health plans outlined in paragraph (b).

(d) The notification must also inform the complainant of the right to submit the complaint

at any time to
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce for investigation and the

toll-free telephone number of the
deleted text begin
appropriate
deleted text end
commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 52.

Minnesota Statutes 2024, section 62Q.71, is amended to read:

62Q.71 NOTICE TO ENROLLEES.

Each health plan company shall provide to enrollees a clear and concise description of

its complaint resolution procedure, if applicable under section
62Q.68, subdivision 1
, and

the procedure used for utilization review as defined under chapter 62M as part of the member

handbook, subscriber contract, or certificate of coverage. If the health plan company does

not issue a member handbook, the health plan company may provide the description in

another written document. The description must specifically inform enrollees:

(1) how to submit a complaint to the health plan company;

(2) if the health plan includes utilization review requirements, how to notify the utilization

review organization in a timely manner and how to obtain authorization for health care

services;

(3) how to request an appeal either through the procedures described in section
62Q.70
,

if applicable, or through the procedures described in chapter 62M;

(4) of the right to file a complaint with
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce

at any time during the complaint and appeal process;

(5) of the toll-free telephone number of the
deleted text begin
appropriate
deleted text end
commissioner; and

(6) of the right, for individual and group coverage, to obtain an external review under

section
62Q.73
and a description of when and how that right may be exercised, including

that under most circumstances an enrollee must exhaust the internal complaint or appeal

process prior to external review. However, an enrollee may proceed to external review

without exhausting the internal complaint or appeal process under the following

circumstances:

(i) the health plan company waives the exhaustion requirement;

(ii) the health plan company is considered to have waived the exhaustion requirement

by failing to substantially comply with any requirements including, but not limited to, time

limits for internal complaints or appeals; or

(iii) the enrollee has applied for an expedited external review at the same time the enrollee

has applied for internal review under chapter 62M.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 53.

Minnesota Statutes 2024, section 62Q.73, subdivision 3, is amended to read:

Subd. 3.

Right to external review.

(a) Any enrollee or anyone acting on behalf of an

enrollee who has received an adverse determination may submit a written request for an

external review of the adverse determination, if applicable under section
62Q.68, subdivision

1
, or
62M.06
,
deleted text begin
to the commissioner of health if the request involves a health plan company

regulated by that commissioner or
deleted text end
to the commissioner of commerce
deleted text begin
if the request involves

a health plan company regulated by that commissioner
deleted text end
. Notification of the enrollee's right

to external review must accompany the denial issued by the insurer.

(b) Nothing in this section requires the commissioner of
deleted text begin
health or
deleted text end
commerce to

independently investigate an adverse determination referred for independent external review.

(c) If an enrollee requests an external review, the health plan company must participate

in the external review. The cost of the external review must be borne by the health plan

company.

(d) The enrollee must request external review within six months from the date of the

adverse determination.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 54.

Minnesota Statutes 2024, section 62Q.73, subdivision 10, is amended to read:

Subd. 10.

Data reporting.

The
deleted text begin
commissioners
deleted text end
new text begin
commissioner of commerce
new text end
shall make

available to the public, upon request, summary data on the decisions rendered under this

section, including the number of reviews heard and decided and the final outcomes. Any

data released to the public must not individually identify the enrollee initiating the request

for external review.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 55.

Minnesota Statutes 2024, section 62Q.81, subdivision 7, is amended to read:

Subd. 7.

Standard plans.

(a) A health plan company that offers individual health plans

must ensure that no less than one individual health plan at each level of coverage described

in subdivision 1, paragraph (b), clause (3), that the health plan company offers in each

geographic rating area the health plan company serves conforms to the standard plan

parameters determined by the commissioner under paragraph (e).

(b) An individual health plan offered under this subdivision must be:

(1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection

process;

(2) marketed as standard plans and in the same manner as other individual health plans

offered by the health plan company; and

(3) offered for purchase to any individual.

(c) This subdivision does not apply to catastrophic plans, grandfathered plans, small

group health plans, large group health plans, health savings accounts, qualified high

deductible health benefit plans, limited health benefit plans, or short-term limited-duration

health insurance policies.

(d) Health plan companies must meet the requirements in this subdivision separately for

plans offered through MNsure under chapter 62V and plans offered outside of MNsure.

(e) The commissioner of commerce
deleted text begin
, in consultation with the commissioner of health,
deleted text end

must annually determine standard plan parameters, including but not limited to cost-sharing

structure and covered benefits, that comprise a standard plan in Minnesota.

(f) Notwithstanding section
62A.65, subdivision 2
, a health plan company may

discontinue offering a health plan under this subdivision if, three years after the date the

plan is initially offered, the plan has fewer than 75 enrollees. A health plan company

discontinuing a health plan under this paragraph may discontinue a health plan that has

fewer than 75 enrollees if it:

(1) provides notice of the plan's discontinuation in writing, in a form prescribed by the

commissioner, to each enrollee of the plan at least 90 calendar days before the date the

coverage is discontinued;

(2) offers on a guaranteed issue basis to each enrollee the option to purchase an individual

health plan currently being offered by the health plan company for individuals in that

geographic rating area. An enrollee who does not select an option shall be automatically

enrolled in the individual health plan closest in actuarial value to the enrollee's current plan;

and

(3) acts uniformly without regard to any health status-related factor of an enrollee or an

enrollee's dependents who may become eligible for coverage.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

Sec. 56.

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. 57.

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. 58.
new text begin
REVISOR INSTRUCTION.
new text end

new text begin

(a) Except as otherwise provided in this act, the revisor of statutes shall substitute the

term "commissioner of commerce" for the term "commissioner of health" wherever the

term appears in (1) Minnesota Statutes, chapters 62D, except section 62D.02, subdivision

12; 62L; and 62Q, except sections 62Q.19 and 62Q.33; (2) Minnesota Statutes, sections

60B.15, 60B.191, 60B.20, 62K.09, 62K.10, 62K.105, 62K.12, 62K.13, 62K.14, 62W.05,

256B.69, and 256B.692; (3) Minnesota Rules, chapters 4685, 2740, 4688; and (4) Minnesota

Rules, part 9510.2020, subparts 3 and 8, item (C). The revisor shall also make any necessary

grammatical changes to verbs or other words to conform with this substitution.

new text end

new text begin

(b) The revisor of statutes shall remove the term "commissioner of health" wherever the

term appears in Minnesota Rules, chapter 2730.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027.

new text end

ARTICLE 5

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 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

new text begin

(h) 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

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 May 1, 2028, the association must provide each group health carrier with an

estimate of the carrier's assessment under paragraph (a).

(c) By June 30, 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, in consultation with the commissioner, based on the group

health carrier's portion of the total premiums for group health plans written in Minnesota

for benefit year 2027.
new text begin
The commissioner must approve the carrier's assessment amount.
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 25, 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 1, 2028
new text begin
, for deposit in the premium

security plan account created 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 15, 2028. The commissioner may defer all or part of the assessment

if the commissioner determines the payment of the assessment places the group health

carrier in a financially impaired condition. The commissioner may deny an application for

deferral under this paragraph. No later than June 15, 2028, the commissioner must notify

the association and the group health carrier whether the assessment deferral is approved or

denied. If the commissioner approves the deferral request, the notice must include the amount

of and due date for the deferred portion of the assessment. If all or part of the assessment

is deferred, the association must include the amount deferred in the other group health

carriers' assessments in a proportionate manner consistent with this subdivision.
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 determines the assessment imposed under paragraph (a) exceeds

or is less than the amount necessary to operate and administer the Minnesota premium

security plan and issue reinsurance payments, the association must require group health

carriers to pay an additional amount or the association must issue a refund to the group

health carriers. The association must determine the accuracy of the assessment by
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, 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 section is appropriated to the commissioner

from the general fund. The credit under this subdivision does not affect the calculation of

fire state aid under section
477B.03
and police state aid under section
477C.03
. The

commissioner of commerce must annually provide to the commissioner a list of assessments

paid by taxpayers under section
62E.23
by March 1 of the calendar year following the

assessment.

new text 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 6

HEALTH INSURANCE

Section 1.

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. 2.

Minnesota Statutes 2025 Supplement, section 62A.31, subdivision 1u, is amended

to read:

Subd. 1u.

Guaranteed issue for eligible persons.

(a)(1) Eligible persons are those

individuals described in paragraph (b) who seek to enroll under the policy during the period

specified in paragraph (c) and who submit evidence of the date of termination or

disenrollment described in paragraph (b), or of the date of Medicare Part D enrollment, with

the application for a Medicare supplement policy.

(2) With respect to eligible persons, an issuer shall not: deny or condition the issuance

or effectiveness of a Medicare supplement policy described in paragraph (c) that is offered

and is available for issuance to new enrollees by the issuer; discriminate in the pricing of

such a Medicare supplement policy because of health status, claims experience, receipt of

health care, medical condition, or age; or impose an exclusion of benefits based upon a

preexisting condition under such a Medicare supplement policy.

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

(1) the individual is enrolled under an employee welfare benefit plan that provides health

benefits that supplement the benefits under Medicare; and the plan terminates, or the plan

ceases to provide all such supplemental health benefits to the individual;

(2) the individual is enrolled with a Medicare Advantage organization under a Medicare

Advantage plan under Medicare Part C, and any of the following circumstances apply, or

the individual is 65 years of age or older and is enrolled with a Program of All-Inclusive

Care for the Elderly (PACE) provider under section 1894 of the federal Social Security Act,

and there are circumstances similar to those described in this clause that would permit

discontinuance of the individual's enrollment with the provider if the individual were enrolled

in a Medicare Advantage plan:

(i) the organization's or plan's certification under Medicare Part C has been terminated

or the organization has terminated or otherwise discontinued providing the plan in the area

in which the individual resides;

(ii) the individual is no longer eligible to elect the plan because of a change in the

individual's place of residence or other change in circumstances specified by the secretary,

but not including termination of the individual's enrollment on the basis described in section

1851(g)(3)(B) of the federal Social Security Act, United States Code, title 42, section

1395w-21(g)(3)(b) (where the individual has not paid premiums on a timely basis or has

engaged in disruptive behavior as specified in standards under section 1856 of the federal

Social Security Act, United States Code, title 42, section 1395w-26), or the plan is terminated

for all individuals within a residence area;

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

Secretary, that:

(A) the organization offering the plan substantially violated a material provision of the

organization's contract in relation to the individual, including the failure to provide an

enrollee on a timely basis medically necessary care for which benefits are available under

the plan or the failure to provide such covered care in accordance with applicable quality

standards; or

(B) the organization, or agent or other entity acting on the organization's behalf, materially

misrepresented the plan's provisions in marketing the plan to the individual; or

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

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

(A) an eligible organization under a contract under section 1876 of the federal Social

Security Act, United States Code, title 42, section 1395mm (Medicare cost);

(B) a similar organization operating under demonstration project authority, effective for

periods before April 1, 1999;

(C) an organization under an agreement under section 1833(a)(1)(A) of the federal Social

Security Act, United States Code, title 42, section 1395l(a)(1)(A) (health care prepayment

plan); or

(D) an organization under a Medicare Select policy under section
62A.318
or the similar

law of another state; and

(ii) the enrollment ceases under the same circumstances that would permit discontinuance

of an individual's election of coverage under clause (2);

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

ceases because:

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

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

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

(iii) the issuer, or an agent or other entity acting on the issuer's behalf, materially

misrepresented the policy's provisions in marketing the policy to the individual;

(5)(i) the individual was enrolled under a Medicare supplement policy and terminates

that enrollment and subsequently enrolls, for the first time, with any Medicare Advantage

organization under a Medicare Advantage plan under Medicare Part C; any eligible

organization under a contract under section 1876 of the federal Social Security Act, United

States Code, title 42, section 1395mm (Medicare cost); any similar organization operating

under demonstration project authority; any PACE provider under section 1894 of the federal

Social Security Act, or a Medicare Select policy under section
62A.318
or the similar law

of another state; and

(ii) the subsequent enrollment under item (i) is terminated by the enrollee during any

period within the first 12 months of the subsequent enrollment during which the enrollee

is permitted to terminate the subsequent enrollment under section 1851(e) of the federal

Social Security Act;

(6) the individual, upon first enrolling for benefits under Medicare Part B, enrolls in a

Medicare Advantage plan under Medicare Part C, or with a PACE provider under section

1894 of the federal Social Security Act, and disenrolls from the plan by not later than 12

months after the effective date of enrollment;

(7) the individual enrolls in a Medicare Part D plan during the initial Part D enrollment

period, as defined under United States Code, title 42, section 1395ss(v)(6)(D), and, at the

time of enrollment in Part D, was enrolled under a Medicare supplement policy that covers

outpatient prescription drugs and the individual terminates enrollment in the Medicare

supplement policy and submits evidence of enrollment in Medicare Part D along with the

application for a policy described in paragraph (e), clause (4);

(8) the individual was enrolled in a state public program and is losing coverage due to

the unwinding of the Medicaid continuous enrollment conditions, as provided by Code of

Federal Regulations, title 45, section 155.420 (d)(9) and (d)(1), and Public Law 117-328,

section 5131 (2022); or

(9) the individual meets the requirements under subdivision 1r, paragraph (c), and enrolls

during the open enrollment period.

(c)(1) In the case of an individual described in paragraph (b), clause (1), the guaranteed

issue period begins on the later of: (i) the date the individual receives a notice of termination

or cessation of all supplemental health benefits or, if a notice is not received, notice that a

claim has been denied because of a termination or cessation; or (ii) the date that the applicable

coverage terminates or ceases; and ends 63 days after the later of those two dates.

(2) In the case of an individual described in paragraph (b), clause (2), (3), (5), or (6),

whose enrollment is terminated involuntarily, the guaranteed issue period begins on the

date that the individual receives a notice of termination and ends 63 days after the date the

applicable coverage is terminated.

(3) In the case of an individual described in paragraph (b), clause (4), item (i), the

guaranteed issue period begins on the earlier of: (i) the date that the individual receives a

notice of termination, a notice of the issuer's bankruptcy or insolvency, or other such similar

notice if any; and (ii) the date that the applicable coverage is terminated, and ends on the

date that is 63 days after the date the coverage is terminated.

(4) In the case of an individual described in paragraph (b), clause (2), (4), (5), or (6),

who disenrolls voluntarily, the guaranteed issue period begins on the date that is 60 days

before the effective date of the disenrollment and ends on the date that is 63 days after the

effective date.

(5) In the case of an individual described in paragraph (b), clause (7), the guaranteed

issue period begins on the date the individual receives notice pursuant to section

1882(v)(2)(B) of the Social Security Act from the Medicare supplement issuer during the

60-day period immediately preceding the initial Part D enrollment period and ends on the

date that is 63 days after the effective date of the individual's coverage under Medicare Part

D.

(6) In the case of an individual described in paragraph (b) but not described in this

paragraph, the guaranteed issue period begins on the effective date of disenrollment and

ends on the date that is 63 days after the effective date.

(7) For an individual described in paragraph (b), clause (9), the guarantee issue period

is the open enrollment period.

(d)(1) In the case of an individual described in paragraph (b), clause (5), or deemed to

be so described, pursuant to this paragraph, whose enrollment with an organization or

provider described in paragraph (b), clause (5), item (i), is involuntarily terminated within

the first 12 months of enrollment, and who, without an intervening enrollment, enrolls with

another such organization or provider, the subsequent enrollment is deemed to be an initial

enrollment described in paragraph (b), clause (5).

(2) In the case of an individual described in paragraph (b), clause (6), or deemed to be

so described, pursuant to this paragraph, whose enrollment with a plan or in a program

described in paragraph (b), clause (6), is involuntarily terminated within the first 12 months

of enrollment, and who, without an intervening enrollment, enrolls in another such plan or

program, the subsequent enrollment is deemed to be an initial enrollment described in

paragraph (b), clause (6).

(3) For purposes of paragraph (b), clauses (5) and (6), no enrollment of an individual

with an organization or provider described in paragraph (b), clause (5), item (i), or with a

plan or in a program described in paragraph (b), clause (6), may be deemed to be an initial

enrollment under this paragraph after the two-year period beginning on the date on which

the individual first enrolled with the organization, provider, plan, or program.

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

(1) paragraph (b), clauses (1) to
deleted text begin
(4)
deleted text end
new text begin
(3)
new text end
, is any Medicare supplement policy that has a

benefit package consisting of the basic Medicare supplement plan described in section

62A.316, paragraph (a)
, plus any combination of the three optional riders described in

section
62A.316, paragraph (b)
, clauses (1) to (3), offered by any issuer;

(2) paragraph (b), clause (5), is the same Medicare supplement policy in which the

individual was most recently previously enrolled, if available from the same issuer, or, if

not so available, any policy described in clause (1) offered by any issuer, except that after

December 31, 2005, if the individual was most recently enrolled in a Medicare supplement

policy with an outpatient prescription drug benefit, a Medicare supplement policy to which

the individual is entitled under paragraph (b), clause (5), is:

(i) the policy available from the same issuer but modified to remove outpatient

prescription drug coverage; or

(ii) at the election of the policyholder, a policy described in clause (4), except that the

policy may be one that is offered and available for issuance to new enrollees that is offered

by any issuer;

(3) paragraph (b),
deleted text begin
clause
deleted text end
new text begin
clauses (4) and
new text end
(6), is any Medicare supplement policy offered

by any issuer;

(4) paragraph (b), clause (7), is a Medicare supplement policy that has a benefit package

classified as a basic plan under section
62A.316
if the enrollee's existing Medicare

supplement policy is a basic plan or, if the enrollee's existing Medicare supplement policy

is an extended basic plan under section
62A.315
, a basic or extended basic plan at the option

of the enrollee, provided that the policy is offered and is available for issuance to new

enrollees by the same issuer that issued the individual's Medicare supplement policy with

outpatient prescription drug coverage. The issuer must permit the enrollee to retain all

optional benefits contained in the enrollee's existing coverage, other than outpatient

prescription drugs, subject to the provision that the coverage be offered and available for

issuance to new enrollees by the same issuer.

(f)(1) At the time of an event described in paragraph (b), because of which an individual

loses coverage or benefits due to the termination of a contract or agreement, policy, or plan,

the organization that terminates the contract or agreement, the issuer terminating the policy,

or the administrator of the plan being terminated, respectively, shall notify the individual

of the individual's rights under this subdivision, and of the obligations of issuers of Medicare

supplement policies under paragraph (a). The notice must be communicated

contemporaneously with the notification of termination.

(2) At the time of an event described in paragraph (b), because of which an individual

ceases enrollment under a contract or agreement, policy, or plan, the organization that offers

the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer

offering the policy, or the administrator of the plan, respectively, shall notify the individual

of the individual's rights under this subdivision, and of the obligations of issuers of Medicare

supplement policies under paragraph (a). The notice must be communicated within ten

working days of the issuer receiving notification of disenrollment.

(g) Reference in this subdivision to a situation in which, or to a basis upon which, an

individual's coverage has been terminated does not provide authority under the laws of this

state for the termination in that situation or upon that basis.

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

or limit, the individual's rights under subdivision 1h.

new text begin

(i) An individual described in paragraph (b), clause (4), whose enrollment ceased between

January 1, 2025, and January 1, 2026, is an eligible person beginning for plan year 2027.

Individuals under this paragraph are entitled to any Medicare supplement policy offered by

any issuer regardless of the individual's health coverage status or health plan after the

individual's enrollment ceased and before plan year 2027.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 3.

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. 4.

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. 5.

Minnesota Statutes 2024, section 62M.02, is amended by adding a subdivision to

read:

new text begin

Subd. 2a.

new text end

new text begin

Artificial intelligence.

new text end

new text begin

"Artificial intelligence" has the meaning given in

United States Code, title 15, section 9401.

new text end

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.

new text begin

(f) A utilization review organization is prohibited from using an algorithm or artificial

intelligence alone without a clinician review by an appropriate health professional, as

required under this section, when making an adverse determination.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, and applies to health

plans offered, sold, issued, or renewed on or after that date.

new text end

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.

new text begin

(l) Health plans 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:

new text end

new text begin

(1) is not within the clinical trainee's scope of practice under section 245I.04, subdivision

7; or

new text end

new text begin

(2) is not 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 62Q.545, is amended to read:

62Q.545 COVERAGE OF HOME CARE NURSING.

(a) Home care nursing services, as provided under section
256B.0625, subdivision 7
,

with the exception of section
256B.0654, subdivision 4
, shall be covered under a health

plan for persons who are concurrently covered by both the health plan and enrolled in

medical assistance under chapter 256B.

(b) For purposes of this section, a period of home care nursing services may be subject

to the co-payment, coinsurance, deductible, or other enrollee cost-sharing requirements that

apply under the health plan. Cost-sharing requirements for home care nursing services must

not place a greater financial burden on the insured or enrollee than those requirements

applied by the health plan to other similar services or benefits. Nothing in this section is

intended to prevent a health plan company from requiring prior authorization by the health

plan company for such services as required by section
256B.0625, subdivision 7
, or use of

contracted providers under the applicable provisions of the health plan.

new text begin

(c) Notwithstanding section 62J.26, a health plan must not impose any quantity limitation

on the coverage under this section.

new text end

new text begin

(d) Notwithstanding section 62J.26, a health plan must refer to all services meeting the

definition of home care nursing services in paragraph (e) as home care nursing services in

the health plan's policy, certificate, contract, or other evidence of coverage and related

documents, including but not limited to utilization review policies, claims forms, instructions,

and communications to enrollees and providers.

new text end

new text begin

(e) For purposes of this section, "home care nursing services" means ongoing, individual,

and continuous nursing services that are:

new text end

new text begin

(1) ordered by a physician, advanced practice registered nurse, or physician assistant;

new text end

new text begin

(2) provided by a registered nurse or licensed practical nurse acting within the provider's

scope of practice;

new text end

new text begin

(3) medically necessary to maintain, stabilize, or restore the recipient's health due to

medical complexity or the need for sustained skilled nursing assessment, intervention, or

monitoring; and

new text end

new text begin

(4) required for a duration or frequency that cannot be safely or effectively met through

intermittent, episodic, or visit-based nursing services.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

Paragraph (c) is effective January 1, 2026, and applies to policies

issued, offered, or renewed and causes of action accruing on or after that date. Paragraphs

(d) and (e) are effective August 1, 2026.

new text end

Sec. 9.

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. 10.

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.

ARTICLE 7

CONSUMER PROTECTION

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
deleted text begin

up to the first $5,000,000 each fiscal year
deleted text end
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.

new text begin

[45A.08] SUSPECTED FRAUD OR FINANCIAL EXPLOITATION;

TRUSTED CONTACT PROGRAM.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definition.

new text end

new text begin

For purposes of this section, "trusted contact" means a person

who has attained the age of 18 years and who a financial services provider customer

designates as a person a financial services provider may contact if (1) an emergency occurs,

(2) the financial services provider loses contact with the customer, or (3) the financial

services provider suspects third-party fraud or financial exploitation targeting the customer.

new text end

new text begin

Subd. 2.

new text end

new text begin

Fraudulent activity; financial exploitation; reporting.

new text end

new text begin

Notwithstanding any

other law to the contrary, a financial services provider may report suspected fraudulent

activity or financial exploitation targeting a customer to a federal, state, county, or municipal

law enforcement agency or an appropriate public protective agency.

new text end

new text begin

Subd. 3.

new text end

new text begin

Trusted contact program.

new text end

new text begin

(a) Notwithstanding any other law to the contrary,

a financial services provider may offer a trusted contact program to customers. A customer

may designate one or more trusted contacts for the financial services provider to contact in

the event (1) a customer is not responsive to financial services provider communications,

(2) the financial services provider is presented with an urgent matter or emergency involving

the customer and the financial services provider is unable to locate the customer, (3) the

financial services provider suspects fraudulent activity or financial exploitation targeting

the customer, or (4) the customer's account is deemed dormant and the financial services

provider is attempting to verify the customer's status and location. A financial services

provider may establish procedures, requirements, and forms the financial services provider

deems appropriate and necessary to implement a trusted contact program under this section.

new text end

new text begin

(b) A customer may terminate a person's appointment as a trusted contact at any time.

A trusted contact may withdraw the person's status as a trusted contact at any time. The

financial services provider may require documentation or verification the financial services

provider determines is necessary to establish a trusted contact's termination or withdrawal.

new text end

new text begin

Subd. 4.

new text end

new text begin

Account security.

new text end

new text begin

Notwithstanding any other law to the contrary, a financial

services provider may voluntarily offer customers an account with convenience and security

features that set transaction limits and permit limited access for one or more trusted contacts

to view account activity.

new text end

new text begin

Subd. 5.

new text end

new text begin

Certain liability limited.

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new text begin

(a) A financial services provider is not liable for a

trusted contact's actions. A financial services provider is not liable for declining to interact

with a trusted contact if the financial services provider, in good faith and exercising

reasonable care, determines a trusted contact is not acting in the customer's best interests.

new text end

new text begin

(b) A financial services provider is not civilly liable for actions taken to report suspected

fraudulent activity or financial exploitation under subdivision 2.

new text end

new text begin

(c) A financial services provider is not civilly liable for implementing or not

implementing, or for actions or omissions related to providing or administering, a trusted

contact program.

new text end

new text begin

(d) A trusted contact who acts in good faith and exercises reasonable care is immune

from liability.

new text end

Sec. 4.

Minnesota Statutes 2024, section 53B.69, subdivision 10, is amended to read:

Subd. 10.

Virtual currency kiosk.

"Virtual currency kiosk" means an electronic terminal

acting as a mechanical agent
new text begin
or a person acting on behalf
new text end
of the virtual currency kiosk

operator to enable the virtual currency kiosk operator to facilitate the exchange of virtual

currency for money, bank credit, or other virtual currency, including but not limited to by

(1) connecting directly to a separate virtual currency exchanger that performs the actual

virtual currency transmission, or (2) drawing upon the virtual currency in the possession of

the electronic terminal's operator.

Sec. 5.

new text begin

[53B.751] VIRTUAL CURRENCY KIOSKS; PROHIBITION.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Virtual currency kiosks prohibited.

new text end

new text begin

(a) Beginning August 1, 2026, a

person is prohibited from installing, operating, maintaining, or making available for use a

virtual currency kiosk.

new text end

new text begin

(b) On or before December 31, 2026, a virtual currency kiosk operator must remove the

virtual currency kiosk from any location where the virtual currency kiosk is visible or

accessible to the public.

new text end

new text begin

Subd. 2.

new text end

new text begin

Payout.

new text end

new text begin

(a) On or before December 31, 2026, a virtual currency kiosk operator

that conducts virtual currency transactions exclusively through a virtual currency kiosk

must pay out any money or virtual currency held for or owed to a new or existing customer

that exists as a result of virtual currency kiosk transactions.

new text end

new text begin

(b) A new or existing customer may elect, at any time before December 31, 2026, to

receive a payout under this subdivision:

new text end

new text begin

(1) in United States dollars, in an amount equal to the market value of the customer's

virtual currency plus any fiat currency; or

new text end

new text begin

(2) to a virtual currency wallet designated by the customer.

new text end

new text begin

(c) A virtual currency kiosk operator must make a payout under this subdivision in the

manner elected by a new or existing customer under paragraph (b). If a new or existing

customer elects the option under paragraph (b), clause (2), the virtual currency kiosk operator

must transfer the full amount of the money and virtual currency being held for or owed to

the new or existing customer to the customer's designated virtual currency wallet within 30

days of the date the customer submits the payout request.

new text end

new text begin

(d) A payout to a new or existing customer must be recorded on the applicable blockchain.

A virtual currency kiosk operator must retain proof that a transfer was made and must make

retained proof available to the commissioner upon request.

new text end

new text begin

Subd. 3.

new text end

new text begin

Exception.

new text end

new text begin

A virtual currency kiosk operator is not required to make a payout

under subdivision 2 if the operator maintains, at all times, other lawful means for new and

existing customers to access, transfer, redeem, or otherwise transact a customer's money or

virtual currency that exists as a result of virtual currency kiosk transactions.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026.

new text end

Sec. 6.

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. 7.

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. 8.

new text begin

[325E.91] PROHIBITION ON NUDIFICATION TECHNOLOGY.

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) "Identifiable individual" means a person that is identifiable:

new text end

new text begin

(1) from the image itself, by the person depicted in the image, or by another person; or

new text end

new text begin

(2) from personal information displayed in connection with the image.

new text end

new text begin

(c) "Intimate part" has the meaning given in section 609.341, subdivision 5.

new text end

new text begin

(d) "Nudify" or "nudified" means the process by which:

new text end

new text begin

(1) an image or video is altered or generated to depict an intimate part not depicted in

an original unaltered image or video of an identifiable individual; and

new text end

new text begin

(2) the altered or generated image or video is so realistic that a reasonable person would

believe that the intimate part belongs to the identifiable individual.

new text end

new text begin

(e) "Technical skill" means substantial application of individualized technological or

artistic skill and judgment by a human creator in directing, shaping, or controlling the output.

new text end

new text begin

Subd. 2.

new text end

new text begin

Nudification prohibited.

new text end

new text begin

(a) A person who owns or controls a website,

application, software, program, or other service must not:

new text end

new text begin

(1) allow a user to access, download, or use the website, application, software, program,

or other service to nudify an image or video; or

new text end

new text begin

(2) nudify an image or video on behalf of a user.

new text end

new text begin

(b) A person must not advertise or promote a website, application, software, program,

or other service that performs the actions described in paragraph (a).

new text end

new text begin

Subd. 3.

new text end

new text begin

Exemption.

new text end

new text begin

Subdivision 2 does not apply when the website, application,

software, program, or other service requires the technical skill of a user to nudify an image

or video.

new text end

new text begin

Subd. 4.

new text end

new text begin

Civil action; damages.

new text end

new text begin

An individual depicted in an image or video that was

nudified in violation of this section may bring a civil action in district court against the

person who violated this section for:

new text end

new text begin

(1) compensatory damages, including mental anguish or suffering, in an amount up to

three times the actual damages sustained;

new text end

new text begin

(2) punitive damages;

new text end

new text begin

(3) injunctive relief;

new text end

new text begin

(4) reasonable attorney fees, costs, and disbursements; and

new text end

new text begin

(5) other relief the court deems just and equitable.

new text end

new text begin

Subd. 5.

new text end

new text begin

Penalties.

new text end

new text begin

(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.

new text end

new text begin

(b) Notwithstanding any contrary provision in law, including but not limited to section

16A.151, a civil penalty recovered under this subdivision must be deposited into the 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:

new text end

new text begin

(1) direct client assistance to crime victims;

new text end

new text begin

(2) competitive wages for direct service staff;

new text end

new text begin

(3) hotel stays and other housing-related supports and services;

new text end

new text begin

(4) culturally responsive programming;

new text end

new text begin

(5) prevention programming, including domestic abuse transformation and restorative

justice programming; and

new text end

new text begin

(6) for other needs of organizations and crime victim survivors.

new text end

new 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.

new text end

new text begin

Subd. 6.

new text end

new text begin

Jurisdiction; venue.

new text end

new text begin

(a) A court has jurisdiction over a civil action filed pursuant

to this section if the plaintiff or defendant resides in this state.

new text end

new text begin

(b) A civil action arising under this section may be filed in the county where the plaintiff

resides.

new text end

new text begin

Subd. 7.

new text end

new text begin

Immunity.

new text end

new text begin

(a) This section does not alter or amend the liabilities and protections

granted by United States Code, title 47, section 230, and must be construed in a manner

consistent with federal law.

new text end

new text begin

(b) This section does not impose liability on the provider of an information service or a

telecommunication service, both as defined in United States Code, title 47, section 153.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to causes

of action accruing on or after that date.

new text end

Sec. 9.

new text begin

[325F.756] ONLINE SWEEPSTAKES.

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) "Dual-currency" means a system of payment that allows a person to play or participate

in a simulated gambling program for direct or indirect consideration, including consideration

associated with a related product, service, or activity, and for which the person playing the

simulated gambling program may become eligible for a prize, award, cash, cash equivalent,

or chance to win a prize, award, cash, or cash equivalent. Dual-currency system does not

include a contest for which no consideration is given, either directly or indirectly.

new text end

new text begin

(c) "Online sweepstakes game" means a game, contest, or promotion that: (1) is available

on the Internet or accessible on a mobile device, computer terminal, or similar access device;

(2) utilizes a dual-currency system of payment allowing the player to exchange the currency

for a prize, award, cash, cash equivalent, or chance to win a prize, award, cash, or cash

equivalent; and (3) simulates casino-style or another form of gambling.

new text end

new text begin

(d) "Prize" has the meaning given in section 325F.755, subdivision 1.

new text end

new text begin

Subd. 2.

new text end

new text begin

Prohibition of online sweepstakes games and revenue from illegal

markets.

new text end

new text begin

(a) A person or entity is prohibited from operating, conducting, or promoting an

online sweepstakes game in Minnesota.

new text end

new text begin

(b) An applicant, licensed entity, financial institution, payment processor, geolocation

provider, gaming content supplier, platform provider, or media affiliate is prohibited from

supporting the operation of, conducting, or promoting an online sweepstakes game in

Minnesota.

new text end

new text begin

Subd. 3.

new text end

new text begin

Penalties and remedies.

new text end

new text begin

The penalties and remedies provided under section

325F.755, subdivision 7, apply to violations of this section. The commissioner of public

safety may exercise all powers necessary to investigate and enforce this section and may

issue notices of violation, impose civil fines, and bring enforcement actions consistent with

section 325F.755, subdivision 7.

new text end

Sec. 10.

new text begin

[325F.7845] PHARMACEUTICAL ADVERTISING.

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) "Prescription drug" has the meaning provided in section 151.441, subdivision 8,

except that prescription drug only includes drugs covered by the medical assistance program,

MinnesotaCare program, or state employees group insurance program.

new text end

new text begin

(c) "Television advertisement" means a form of paid marketing communication designed

to promote products, services, or brands through an over-the-air broadcast or an

Internet-based, nonbroadcast stream of an over-the-air broadcast.

new text end

new text begin

Subd. 2.

new text end

new text begin

Prohibition.

new text end

new text begin

Television advertisements for the sale of prescription drugs to

consumers are prohibited.

new text end

new text begin

Subd. 3.

new text end

new text begin

Enforcement.

new text end

new text begin

The attorney general may enforce this section under section

8.31.

new text end

Sec. 11.

Minnesota Statutes 2024, section 325F.79, is amended to read:

325F.79 DEFINITIONS.

For purposes of sections
325F.79
to
325F.792
, the following definitions apply:

new text begin

(a) "Advertisement" means an oral, written, graphic, or pictorial statement made in the

course of soliciting business. Advertisement includes without limitation a statement or

representation:

new text end

new text begin

(1) made in a newspaper, magazine, or other public publication;

new text end

new text begin

(2) contained in a notice, sign, billboard, poster, display, circular, pamphlet, or letter;

or

new text end

new text begin

(3) made on radio, television, or the Internet.

new text end

deleted text begin

(a)
deleted text end
new text begin
(b)
new text end
"Animal" means a dog, wholly or in part of the species Canis familiaris, or a cat,

wholly or in part of the species Felis domesticus.

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
"Pet dealer" means any person, firm, partnership, corporation, or association,

including breeders, that is required to collect sales tax for the sale of animals to the public.

Pet dealer does not include humane societies, nonprofit organizations performing the

functions of humane societies, or animal control agencies.

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
"Breeder" means any person, firm, partnership, corporation, or association that

breeds animals for direct or indirect sale to the public.

deleted text begin

(d)
deleted text end
new text begin
(e)
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"Broker" means a person, firm, partnership, corporation, or association that

purchases animals for resale to other brokers or pet dealers.

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(e)
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new text begin
(f)
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"Health problem" means any disease, illness, or congenital or hereditary condition

which would impair the health or function of the animal that is apparent at the time of sale,

or which should have been apparent to the seller from the veterinary history of the animal.

new text begin

(g) "Pet shop" means a pet dealer that operates a physical retail store from which animals

are sold or offered for sale to the general public, whether through an appointment or

otherwise.

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(f)
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(h)
new text end
"Veterinarian" means a licensed veterinarian in the state of Minnesota.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to acts

committed on or after that date.

new text end

Sec. 12.

Minnesota Statutes 2024, section 325F.791, subdivision 1, is amended to read:

Subdivision 1.

Disclosure.

new text begin
(a)
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Every pet dealer shall deliver to each retail purchaser of

an animal written disclosure as follows:

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(a)
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new text begin
(1)
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the name, address, and USDA license number of the breeder and any broker who

has had possession of the animal; the date of the animal's birth; the date the pet dealer

received the animal; the breed, sex, color, and identifying marks of the animal; the individual

identifying tag, tattoo, or collar number; the name and registration number of the sire and

dam and the litter number; and a record of inoculations, worming treatments, and medication

received by the animal while in the possession of the pet dealer
deleted text begin
.
deleted text end
new text begin
;
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(b)
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new text begin
(2)
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a statement signed by the pet dealer that the animal has no known health problem,

or a statement signed by the pet dealer disclosing any known health problem and a statement

signed by a veterinarian that recommends necessary treatment
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.
deleted text end
new text begin
; and
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new text begin

(3) a copy of all available state or federal inspection reports for the animal's breeder for

all inspections that occurred during the three years preceding the date the animal was

purchased.

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new text begin

(b)
new text end
The disclosure shall be made part of the statement of consumer rights set forth in

subdivision 10. The disclosure required in paragraph (a)
new text begin
, clause (1),
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need not be made for

mixed breed animals if the information is not available and cannot be determined by the

pet dealer.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to acts

committed on or after that date.

new text end

Sec. 13.

Minnesota Statutes 2024, section 325F.791, subdivision 5, is amended to read:

Subd. 5.

Responsibilities of purchaser.

new text begin
(a)
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To obtain the remedies provided in

subdivision 6, the purchaser shall with respect to an animal with a health problem:

deleted text begin

(a)
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new text begin
(1)
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notify the pet dealer, within two business days, of the diagnosis by a veterinarian
new text begin

of the purchaser's choosing
new text end
of a health problem and provide the pet dealer with the name

and telephone number of the veterinarian and a copy of the veterinarian's report on the

animal
deleted text begin
.
deleted text end
new text begin
; and
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deleted text begin

(b)
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new text begin
(2)
new text end
if the purchaser wishes to receive a full refund for the animal, return the animal

no later than two business days after receipt of a written statement from a veterinarian

indicating the animal is unfit due to a health problem.

new text begin

(b)
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With respect to a dead animal the purchaser must provide the pet dealer a written

statement from a veterinarian, indicating the animal died from a health problem which

existed on or before the receipt of the animal by the purchaser.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to acts

committed on or after that date.

new text end

Sec. 14.

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[325F.7915] SALE OF DOGS AND CATS PROHIBITED.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Prohibition.

new text end

new text begin

A pet shop must not sell, offer to sell, barter, auction, or

otherwise transfer ownership of an animal.

new text end

new text begin

Subd. 2.

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new text begin

Adoption of animals.

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new text begin

A pet shop may provide space to a nonprofit humane

society, animal control agency, or animal rescue and rehoming organization to offer animals

for adoption if the society, agency, or organization qualifies as a nonprofit organization

under section 501(c)(3) of the Internal Revenue Code.

new text end

new text begin

Subd. 3.

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Ownership interest and fees.

new text end

new text begin

A pet shop is prohibited from having an ownership

interest in an animal offered for adoption under subdivision 2 or receiving a fee for providing

space for animal adoption.

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Subd. 4.

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Continued operation.

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new text begin

Notwithstanding subdivision 1, a pet shop that sold or

offered for sale an animal from the pet shop's physical premises for at least one year before

the effective date of this section may continue to operate as a pet shop and engage in the

sale or offer for sale of animals if:

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new text begin

(1) an animal sold or offered for sale by the pet shop on or after the effective date of this

section is obtained only from a state-licensed or USDA-licensed breeder; and

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(2) the pet shop discloses the breeder's state or USDA license number on the animal's

display cage or enclosure.

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new text begin

Subd. 5.

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Local authority.

new text end

new text begin

Notwithstanding this section, a county, city, town, or township

may enact and enforce by ordinance stricter regulations regarding the transfer of ownership

of animals, including a prohibition on selling or offering for sale animals by a pet dealer or

other entity.

new text end

new text begin

Subd. 6.

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new text begin

Violations.

new text end

new text begin

A pet shop that operates as a pet shop pursuant to subdivision 4

that violates this section on three separate occasions is prohibited from selling, offering to

sell, bartering, auctioning, or otherwise transferring ownership of an animal.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to acts

committed on or after that date.

new text end

Sec. 15.

Minnesota Statutes 2024, section 325F.792, subdivision 2, is amended to read:

Subd. 2.

Civil penalty.

(a) A pet dealer who:

(1) sells an animal without delivery of the disclosure required in section
325F.791,

subdivision 1
;

(2) fails to maintain the records required by section
325F.791, subdivision 2
;

(3) fails to provide registration papers as provided in section
325F.791, subdivision 3
;

(4) fails to make or provide payment for the examinations required by section
325F.791,

subdivision 4
;

(5) fails to post the notice required by section
325F.791, subdivision 9
; or

(6) fails to provide the statement of consumer rights required by section
325F.791,

subdivision 10
,

is subject to a civil fine of up to $1,000 per violation.

new text begin

(b) A pet shop that violates section 325F.7915 is subject to a civil fine of up to $1,000

per violation. Each transfer of an animal's ownership in violation of section 325F.7915 is

a separate violation.

new text end

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(b)
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(c)
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Civil fines collected under this subdivision shall be collected by the court and

turned over to the prosecuting attorney.

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EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to acts

committed on or after that date.

new text end

Sec. 16.

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[325M.40] MINOR ACCESS TO CHATBOTS.

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Subdivision 1.

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new text begin

Definitions.

new text end

new text begin

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

the meanings given.

new text end

new text begin

(b) "Artificial intelligence" or "AI" means a machine-based system that is capable of,

for explicit or implicit objectives, inferring from the input the system receives how to

generate outputs that influence physical or virtual environments.

new text end

new text begin

(c) "AI companion" means artificial intelligence systems that are specifically designed,

marketed, or optimized to form ongoing social or emotional bonds with individuals, whether

or not the systems also provide information, complete tasks, or assist with specific functions.

AI companions seek to build or engage in an emotional relationship with the user by:

new text end

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(1) expressing or inviting emotional attachment;

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new text begin

(2) reminding, prompting, or nudging the user to return for emotional support or

companionship;

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new text begin

(3) depicting nonverbal forms of emotional support;

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new text begin

(4) behaving in a way that a reasonable user would consider excessive praise designed

to foster emotional attachment; or

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new text begin

(5) enabling or purporting to enable increased intimacy based on engagement or pay.

new text end

new text begin

AI companion does not include a consumer electronic device that incorporates a speaker

and voice command interface or text interface and acts as a voice- or text-activated virtual

assistant.

new text end

new text begin

(d) "Chatbot" means an artificial intelligence system with a natural language interface

that provides adaptive, human-like responses to user inputs and is capable of meeting a

user's social needs, including by exhibiting anthropomorphic features and being able to

sustain a relationship across multiple interactions. Chatbot does not include:

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(1) a chatbot that is used only for customer service, a business' operational purposes,

productivity and analysis related to source information, internal research, or technical

assistance;

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new text begin

(2) a chatbot that is a feature of a video game and is limited to replies related to the video

game that cannot discuss topics related to mental health, self-harm, sexually explicit conduct,

or maintain a dialogue on other topics unrelated to the video game; or

new text end

new text begin

(3) a stand-alone consumer electronic device that functions as a speaker and voice

command interface, acts as a voice-activated virtual assistant, and does not sustain a

relationship across multiple interactions or generate outputs that are likely to elicit emotional

responses in the user.

new text end

new text begin

(e) "Minor" means an individual under the age of 18.

new text end

new text begin

Subd. 2.

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new text begin

Prohibition.

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new text begin

(a) A person must ensure that a chatbot operated or distributed

by the person does not make chatbots available to minors to use, interact with, purchase, or

converse with.

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new text begin

(b) A person operating artificial intelligence systems that primarily function as AI

companions must ensure that chatbots operated or distributed by the person are not available

to minors to use, interact with, purchase, or converse with.

new text end

new text begin

Subd. 3.

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new text begin

Remedies; enforcement.

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new text begin

(a) An individual injured by a violation of this section

may bring a civil action for damages, statutory damages not to exceed $1,000, injunctive

relief, and costs and reasonable attorney fees.

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new text begin

(b) The attorney general may enforce this section under section 8.31. In an action brought

under this paragraph, the person who owns or controls a website, application, software, or

program and violates this section is liable for a civil penalty not to exceed $5,000,000.

new text end

new text begin

EFFECTIVE DATE.

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new text begin

This section is effective July 1, 2027.

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Sec. 17.
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TRANSITION PERIOD.
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new text begin

A person who makes a chatbot available to minors must begin decreasing services in a

manner that does not harm minors who use chatbots before services end on July 1, 2027.

new text end

new text begin

EFFECTIVE DATE.

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new text begin

This section is effective the day following final enactment.

new text end

Sec. 18.
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REPEALER.
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new text begin

(a)

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new text begin

Minnesota Statutes 2024, section 53B.75, subdivisions 1, 2, 3, and 5,

new text end

new text begin

are repealed.

new text end

new text begin

(b)

new text end

new text begin

Minnesota Statutes 2024, sections 53B.69, subdivisions 3b and 3c; and 53B.75,

subdivision 4,

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new text begin

are repealed.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

Paragraph (a) is effective August 1, 2026. Paragraph (b) is effective

January 17, 2027.

new text end

ARTICLE 8

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.

new text begin

(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).

new text end

new text begin

(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:

new text end

new text begin

(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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new text begin

(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.

new text end

new text begin

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.

new text end

new text begin

(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:

new text end

new text begin

(A) a completed Uniform Notice of Federal Crowdfunding Offering form that is marked

"renewal"; or

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new text begin

(B) a cover letter or other document requesting renewal

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new text begin

.

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new text begin

(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.

new text end

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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new text begin

(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 the Financial Industry Regulatory Authority Rule 3110.11, or any successor federal

law, to satisfy the obligations under this paragraph; and

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(3)
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new text begin
(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 advisor'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 a 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 the Financial

Industry Regulatory Authority 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 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 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, 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 the Financial Industry Regulatory Authority 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 Code of Federal Regulations, title 17, section

240.17a-3, 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 the Security Exchange

Act of 1934 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 or 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 9

TELECOMMUNICATIONS

Section 1.

Minnesota Statutes 2024, section 237.035, is amended to read:

237.035 TELECOMMUNICATIONS CARRIER EXEMPTION.

(a) Telecommunications carriers are subject to regulation under this chapter only to the

extent required under paragraphs (b) to (e).

(b) Telecommunications carriers shall comply with sections
237.121
and
237.74
.

(c) Telecommunications carriers shall comply with section
237.16
,
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subdivisions
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subdivision
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8
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and 9
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.

(d) To the extent a telecommunications carrier offers local service, it shall obtain a

certificate under section
237.16
for that local service.

(e) In addition, a telecommunications carrier's local service is subject to this chapter

except that:

(1) a telecommunications carrier is not subject to rate-of-return or earnings investigations

under section
237.075
or
237.081
; and

(2) a telecommunications carrier is not subject to section
237.22
.

Sec. 2.

Minnesota Statutes 2024, section 237.036, is amended to read:

237.036 COIN-OPERATED OR PUBLIC PAY TELEPHONES.

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(a) Neither commission approval nor a commission certificate is required to:

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(1) site a coin-operated or public pay telephone in the state; or

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(2) implement changes in service, services offered, rates, or location regarding a

coin-operated or public pay telephone. Registration under section
237.64
is required to own

or operate a coin-operated or public pay telephone in the state.

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(b) This section does not change the authority of other state or local government entities

to regulate aspects of coin-operated or public pay telephone ownership, location, or operation;

however, an entity may not regulate aspects of these services that it did not regulate prior

to May 26, 1999. The commission shall retain the authority delegated to it under federal

and state law to protect the public interest with regard to coin-operated or public pay

telephones.

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(c) Owners and operators of coin-operated or public pay telephones are exempt from

sections
237.06
,
237.07
,
237.075
,
237.09
,
237.23
, and
237.295
, and the annual reporting

requirement of section
237.11
.

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(d)
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Owners of coin-operated or public pay telephones shall:

(1) provide immediate coin-free access, to the extent technically feasible, to 911

emergency service or to another approved emergency service; and

(2) provide free access to the telecommunications relay service for people with

communication disabilities.

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(e) Owners of coin-operated or public pay telephones must post at each coin-operated

or public pay telephone location:

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(1) customer service and complaint information, including the name, address, and

telephone number of the owner of the coin-operated or public pay telephone and the operator

service handling calls from the coin-operated or public pay telephone; a toll-free number

of the appropriate telephone company for the resolution of complaints; and the toll-free

number of the public utilities commission; and

deleted text end

deleted text begin

(2) a toll-free number at which consumers can obtain pricing information regarding

rates, charges, terms, and conditions of local and long-distance calls.

deleted text end

Sec. 3.

Minnesota Statutes 2024, section 237.069, is amended to read:

237.069 TRACER; HARASSING TELEPHONE CALL; RULES.

deleted text begin

The commission shall adopt rules to govern how telephone companies respond to requests

for tracers made by persons who allege receiving harassing telephone calls. The rules must

address when a request for a tracer may be denied or delayed.

deleted text end

new text begin

A telecommunications carrier

operating in Minnesota must ensure the telecommunications carrier's equipment, facilities,

and services are capable of enabling authorized law enforcement agencies to conduct lawful

interception and access call-identifying information in a manner consistent with United

States Code, title 47, sections 1001 to 1010.

new text end

Sec. 4.

Minnesota Statutes 2024, section 237.07, subdivision 1, is amended to read:

Subdivision 1.

Filing of charges.

Every telephone company shall keep on file with the

department a specific rate, toll, or charge for every kind of noncompetitive service and a

price list for every kind of service subject to emerging competition, together with all rules

and classifications used by it in the conduct of the telephone business, including limitations

on liability. The filings are governed by chapter 13. When a company sells services subject

to emerging competition on an individually priced basis, it shall file a statement of the

charges to its customers with the commission and the department.
deleted text begin
The department shall

require each telephone company to keep open for public inspection, at designated offices,

so much of these rates, price lists, and rules as it deems necessary for the public information.
deleted text end

Sec. 5.

Minnesota Statutes 2024, section 237.11, is amended to read:

237.11 INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.

new text begin

(a)
new text end
Every telephone company subject to the provisions of this chapter, wherever

organized, shall
deleted text begin
keep an office in this state, and
deleted text end
make such reports to the department as it

shall from time to time require. All books, records, and files
deleted text begin
, whether they relate to

competitive or noncompetitive services,
deleted text end
and all of its property shall be at all times subject

to inspection by the commission and the department. It shall close its accounts and take

therefrom a balance sheet on December 31 of each year, and on or before May 1 following,

such balance sheet, together with such other information as the department shall require,

verified by an officer of the telephone company, shall be filed with the commission and the

department, except that a local exchange carrier or a competitive local exchange carrier, as

defined in Minnesota Rules, chapter 7811, is only required to file an annual report that

includes the company's name, contact person, annual revenue, and status of its 911 update

plan.

new text begin

(b)
new text end
In the event that any telephone company shall fail to file its annual report, as provided

by this section, the department is authorized to make such an examination of the books,

records, and vouchers of the company as is necessary to procure the necessary data for the

annual report and cause the same to be prepared. The expense of procuring this data and

preparing this report shall be paid by the telephone company failing to report, and the amount

paid shall be credited by the commissioner of management and budget to funds appropriated

for the expense of the department.

new text begin

(c)
new text end
The department is authorized to force collection of such sum by an action at law in

the name of the department.

Sec. 6.

Minnesota Statutes 2024, section 237.164, is amended to read:

237.164 UNIVERSAL SERVICE DISCOUNT FOR SCHOOL OR LIBRARY.

deleted text begin

The commission shall establish intrastate service discounts for schools and libraries by

order to the extent necessary to enable schools and libraries to receive federally supported

discounts.

deleted text end

new text begin

A school, school district, or library is eligible to receive telecommunications

service at discounted rates, consistent with the E-Rate program administered by the Universal

Service Administrative Company under United States Code, title 47, section 254, and Code

of Federal Regulations, title 47, part 54.

new text end

Sec. 7.

Minnesota Statutes 2024, section 237.626, subdivision 1, is amended to read:

Subdivision 1.

Promotions.

A telephone company or telecommunications carrier may

promote the use of its services by offering a waiver of part or all of a recurring or a

nonrecurring charge, a redemption coupon, or a premium with the purchase of a service.

Section
237.09
does not apply to promotions under this section, but the customer group to

which the promotion is available must be based on reasonable distinctions among customers.

The service being promoted must have a price that is above the incremental cost of the

service, including amortized cost of the promotion.
deleted text begin
A promotion may take effect the day

after the notice is filed with the commission. The notice must identify customers to whom

the promotion is available.
deleted text end

Sec. 8.

Minnesota Statutes 2024, section 237.626, subdivision 3, is amended to read:

Subd. 3.

Promotions available for resale.

Any promotional offering
deleted text begin
lasting more than

90 days and filed with the commission under subdivision 1 must be
deleted text end
new text begin
does not need to be

made
new text end
available to qualifying carriers for resale.
deleted text begin
A
deleted text end
new text begin
If a telephone company or

telecommunications carrier makes a promotional offering available to a qualifying carrier

for resale, the
new text end
qualifying carrier must hold a certificate of authority from the commission

and must have an approved interconnection agreement with the company offering the

promotion, the terms of which include language governing the resale of services.

Sec. 9.

Minnesota Statutes 2024, section 237.66, is amended by adding a subdivision to

read:

new text begin

Subd. 4.

new text end

new text begin

Notice; local residential customers.

new text end

new text begin

A telephone company must notify a

residential customer regarding the price for all service options available to the customer. A

notice must be provided:

new text end

new text begin

(1) at the time the customer initially requests service;

new text end

new text begin

(2) when the customer requests a service change; and

new text end

new text begin

(3) at any time upon the customer's request.

new text end

Sec. 10.

Minnesota Statutes 2024, section 237.66, is amended by adding a subdivision to

read:

new text begin

Subd. 5.

new text end

new text begin

Customer notice; prior authorization.

new text end

new text begin

A telephone company may provide

the notice under subdivision 4 to a customer using paper billing, electronic billing, or other

electronic communication methods if:

new text end

new text begin

(1) the customer affirmatively opts in to electronic billing or electronic communication;

new text end

new text begin

(2) the information in the notice is provided clearly and accessibly; and

new text end

new text begin

(3) the customer is allowed to request a paper copy of service option pricing at any time

and at no charge to the customer.

new text end

Sec. 11.

Minnesota Statutes 2024, section 237.70, subdivision 7, is amended to read:

Subd. 7.

Application, notice, financial administration, complaint investigation.

The

telephone assistance plan must be administered jointly by the commission, the Department

of Commerce, and the local service providers in accordance with the following guidelines:

(a) The commission and the Department of Commerce shall develop an application form

that must be completed by the subscriber for the purpose of certifying eligibility for telephone

assistance plan credits to the local service provider. The application must contain the

applicant's Social Security number. Applicants who refuse to provide a Social Security

number will be denied telephone assistance plan credits. The application form must also

include a statement that the applicant household is currently eligible for one of the programs

that confers eligibility for the federal Lifeline Program. The application must be signed by

the applicant, certifying, under penalty of perjury, that the information provided by the

applicant is true.

(b) Each local service provider shall annually mail a notice of the availability of the

telephone assistance plan to each residential subscriber in a regular billing and shall mail

the application form to customers when requested.

The notice must state the following:

YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE

BILL IF YOU RECEIVE BENEFITS FROM CERTAIN LOW-INCOME ASSISTANCE

PROGRAMS. FOR MORE INFORMATION OR AN APPLICATION FORM PLEASE

CONTACT .........

(c) An application may be made by the subscriber, the subscriber's spouse, or a person

authorized by the subscriber to act on the subscriber's behalf. On completing the application

certifying that the statutory criteria for eligibility are satisfied, the applicant must return the

application to the subscriber's local service provider. On receiving a completed application

from an applicant, the subscriber's local service provider shall provide telephone assistance

plan credits against monthly charges in the earliest possible month following receipt of the

application. The applicant must receive telephone assistance plan credits until the earliest

possible month following the service provider's receipt of information that the applicant is

ineligible.

If the telephone assistance plan credit is not itemized on the subscriber's monthly charges

bill for local telephone service, the local service provider must notify the subscriber of the

approval for the telephone assistance plan credit.

(d) The commission shall serve as the coordinator of the telephone assistance plan and

be reimbursed for its administrative expenses from the surcharge revenue pool. As the

coordinator, the commission shall:

(1) establish a uniform statewide surcharge in accordance with subdivision 6;

deleted text begin

(2) establish a uniform statewide level of telephone assistance plan credit that each local

service provider shall extend to each eligible household in its service area;

deleted text end

deleted text begin

(3)
deleted text end
new text begin
(2)
new text end
require each local service provider to account to the commission on a periodic

basis for surcharge revenues collected by the provider, expenses incurred by the provider,

not to include expenses of collecting surcharges, and credits extended by the provider under

the telephone assistance plan;

deleted text begin

(4)
deleted text end
new text begin
(3)
new text end
require each local service provider to remit surcharge revenues to the Department

of Public Safety for deposit in the fund; and

deleted text begin

(5)
deleted text end
new text begin
(4)
new text end
remit to each local service provider from the surcharge revenue pool the amount

necessary to compensate the provider for expenses, not including expenses of collecting

the surcharges, and telephone assistance plan credits. When it appears that the revenue

generated by the maximum surcharge permitted under subdivision 6 will be inadequate to

fund any particular established level of telephone assistance plan credits, the commission

shall reduce the credits to a level that can be adequately funded by the maximum surcharge.

Similarly, the commission may increase the level of the telephone assistance plan credit

that is available or reduce the surcharge to a level and for a period of time that will prevent

an unreasonable overcollection of surcharge revenues.

(e) Each local service provider shall maintain adequate records of surcharge revenues,

expenses, and credits related to the telephone assistance plan and shall, as part of its annual

report or separately, provide the commission and the Department of Commerce with a

financial report of its experience under the telephone assistance plan for the previous year.

That report must also be adequate to satisfy the reporting requirements of the federal matching

plan.

(f) The Department of Commerce shall investigate complaints against local service

providers with regard to the telephone assistance plan and shall report the results of its

investigation to the commission.

Sec. 12.

Minnesota Statutes 2024, section 237.762, subdivision 5, is amended to read:

Subd. 5.

Income-neutral change.

Other than as authorized in this subdivision, an initial

alternative regulation plan must not permit income-neutral rate changes for price-regulated

services during the plan except as is necessary to implement extended area service or any

successor to that service. Any plan must provide that after the rules issued pursuant to section

237.16
are adopted, rates for price-regulated services may be increased, as approved by the

commission, to the extent necessary to carry out the purpose of those rules.
deleted text begin
However, rate

increases, if any, for those services must be incorporated with a universal service fund so

that the effective rate for the customers of those services does not increase during the first

three years of the plan.
deleted text end

Sec. 13.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 237.065; 237.066; 237.067; 237.071; 237.072; 237.075,

subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11; 237.14; 237.15; 237.16, subdivision 9;

237.22; 237.231; 237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, and 10; 237.66, subdivisions

1, 1a, 1c, 1d, 2, 2a, and 3; 237.75; 237.766; 237.768; 237.772; and 237.775,

new text end

new text begin

are repealed.

new text end

ARTICLE 10

INSURANCE AND FINANCIAL PRODUCTS

Section 1.

new text begin

[48.741] VIRTUAL-CURRENCY CUSTODY SERVICES.

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) "Control of virtual currency" has the meaning given in section 53B.69, subdivision

2.

new text end

new text begin

(c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6.

new text end

new text begin

(d) "Virtual-currency custody services" means safekeeping, controlling, or managing

virtual currency, or the cryptographic private keys used to access virtual currency, on behalf

of another person.

new text end

new text begin

Subd. 2.

new text end

new text begin

Authority.

new text end

new text begin

A banking institution may provide virtual-currency custody services

in a fiduciary or nonfiduciary capacity, subject to this section and applicable state and federal

law.

new text end

new text begin

Subd. 3.

new text end

new text begin

Safety and soundness.

new text end

new text begin

A banking institution that engages in virtual-currency

custody services must conduct the activity in a safe and sound manner and must maintain

written policies and procedures governing risk management, internal controls, cybersecurity,

business continuity, and compliance.

new text end

new text begin

Subd. 4.

new text end

new text begin

Notice to commissioner.

new text end

new text begin

A banking institution must provide written notice to

the commissioner at least 60 days before commencing virtual-currency custody services.

The notice must describe the nature of the services and the banking institution's risk

management framework.

new text end

new text begin

Subd. 5.

new text end

new text begin

Fiduciary capacity.

new text end

new text begin

(a) A banking institution may provide virtual-currency

custody services in a fiduciary or custodial capacity, including as agent, bailee, or trustee

for the limited purpose of safekeeping or administration of virtual currency, to the same

extent the banking institution may lawfully hold or safeguard other assets for customers.

new text end

new text begin

(b) The commissioner may limit or condition the authority to provide virtual-currency

custody services under paragraph (a) only if the commissioner determines the activity is

conducted in an unsafe or unsound manner.

new text end

new text begin

Subd. 6.

new text end

new text begin

Segregation of assets.

new text end

new text begin

A banking institution must structure virtual-currency

custody services to ensure that customer virtual currency and associated control mechanisms

are legally and operationally segregated from the banking institution's assets and are not

treated as the banking institution's property, consistent with the segregation of assets held

in other custodial or fiduciary capacities and the concept of control of controllable electronic

records under sections 336.12-101 to 336.12-107.

new text end

new text begin

Subd. 7.

new text end

new text begin

Third-party service providers.

new text end

new text begin

A banking institution may engage one or more

qualified third-party service providers or subcustodians to facilitate virtual-currency custody

services, provided the banking institution retains oversight responsibility and ensures

compliance with this section.

new text end

new text begin

Subd. 8.

new text end

new text begin

Supervision and examination.

new text end

new text begin

A banking institution's virtual-currency custody

services are subject to examination by the commissioner as part of the regular supervisory

process.

new text end

new text begin

Subd. 9.

new text end

new text begin

Construction.

new text end

new text begin

This section does not (1) authorize a banking institution to

engage in activities otherwise prohibited by law, or (2) alter the legal characterization of

virtual currency under state or federal law.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to

virtual-currency custody services commenced on or after that date.

new text end

Sec. 2.

Minnesota Statutes 2024, section 52.063, subdivision 3, is amended to read:

Subd. 3.

Appointment of National Credit Union Administration Board as

receiver.

Upon a request by the commissioner of commerce, the court may appoint the

National Credit Union Administration Board, created by section 3 of the Federal Credit

Union Act, as amended,
new text begin
or a share insurance provider approved by the commissioner
new text end
as

receiver of a credit union, without bond, when the deposits of the credit union are to any

extent insured by the National Credit Union Administration Board
new text begin
or approved share

insurance provider
new text end
, and the credit union has had its operations suspended or has executed

a consent cease and desist order with the commissioner in lieu of a suspension under section

52.062
. Notwithstanding any other provisions of law, the commissioner of commerce may,

in the event of the suspension or consent cease and desist order, tender to the National Credit

Union Administration Board
new text begin
or approved share insurance provider
new text end
the proposed appointment

as receiver of the credit union. If the National Credit Union Administration Board
new text begin
or approved

share insurance provider
new text end
accepts the proposed appointment and the court appoints the

National Credit Union Administration Board
new text begin
or approved share insurance provider
new text end
as receiver

upon a request by the commissioner, the National Credit Union Administration Board
new text begin
or

approved shared insurance provider
new text end
shall have and possess all the powers and privileges

provided by the laws of this state and section 207 of the Federal Credit Union Act, as

amended, with respect to a receiver of a credit union, the board of directors of the credit

union, and its members.

Sec. 3.

Minnesota Statutes 2024, section 52.24, subdivision 1, is amended to read:

Subdivision 1.

Insurance accounts.

Every credit union under the supervision of the

commissioner of commerce shall at all times maintain in effect insurance of member share

and deposit accounts under the provisions of title II of the National Credit Union Act
new text begin
or

through a credit union share guaranty corporation that is approved by the commissioner
new text end
. A

credit union
deleted text begin
which
deleted text end
new text begin
that
new text end
fails to meet this requirement for insurance of its share and deposit

accounts shall either dissolve or merge with another credit union
deleted text begin
which
deleted text end
new text begin
that
new text end
is insured under

title II of the National Credit Union Act
new text begin
or through a credit union share guaranty corporation

that is approved by the commissioner
new text end
.

Sec. 4.

Minnesota Statutes 2024, section 52.24, is amended by adding a subdivision to

read:

new text begin

Subd. 1a.

new text end

new text begin

Credit union share guaranty corporation; accounts insured.

new text end

new text begin

(a) A credit

union share account of an individual member or a nonmember of a participating credit union

must be guaranteed in an amount established from time to time by the credit union share

guaranty corporation. The primary guaranteed amount must be at least the amount of the

credit union share account but must not exceed $250,000 or the primary guaranteed amount

insured by the National Credit Union Administration, whichever is greater.

new text end

new text begin

(b) The commissioner may examine a credit union share guaranty corporation that insures

the member accounts of a credit union that is subject to this section. The commissioner may

assess the credit union share guaranty corporation examined for reasonable costs incurred

to conduct an examination under this section. Money received from an assessment under

this paragraph must be deposited in the financial institutions account in the special revenue

fund.

new text end

new text begin

(c) A credit union is prohibited from voluntarily terminating the credit union's insurance

with the National Credit Union Administration Share Insurance Program or a credit union

share guaranty corporation without receiving approval from the commissioner.

new text end

Sec. 5.

Minnesota Statutes 2024, section 52.24, subdivision 2, is amended to read:

Subd. 2.

Certificate of approval.

No credit union shall be granted a certificate of

approval by the commissioner of commerce unless the credit union has obtained a

commitment for insurance of its member share and deposit accounts under the provisions

of title II of the National Credit Union Act
new text begin
or from an approved credit union share guaranty

corporation
new text end
.

Sec. 6.

new text begin

[52.25] VIRTUAL-CURRENCY CUSTODY SERVICES.

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) "Control of virtual currency" or "control" has the meaning given in section 53B.69,

subdivision 2.

new text end

new text begin

(c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6.

new text end

new text begin

(d) "Virtual-currency custody services" means safekeeping, controlling, or managing

virtual currency, or the cryptographic private keys used to access virtual currency, on behalf

of another person.

new text end

new text begin

Subd. 2.

new text end

new text begin

Authority.

new text end

new text begin

A credit union may provide virtual-currency custody services to

the credit union's members in a fiduciary or nonfiduciary capacity, subject to this section

and applicable state and federal law.

new text end

new text begin

Subd. 3.

new text end

new text begin

Safety and soundness.

new text end

new text begin

A credit union that engages in virtual-currency custody

services must conduct the activity in a safe and sound manner and must maintain written

policies and procedures governing risk management, internal controls, cybersecurity, business

continuity, and compliance.

new text end

new text begin

Subd. 4.

new text end

new text begin

Notice to commissioner.

new text end

new text begin

A credit union must provide written notice to the

commissioner at least 60 days before commencing virtual-currency custody services. The

notice must describe the nature of the services and the credit union's risk management

framework.

new text end

new text begin

Subd. 5.

new text end

new text begin

Fiduciary capacity.

new text end

new text begin

(a) A credit union may provide virtual-currency custody

services in a fiduciary or custodial capacity, including as agent, bailee, or trustee for the

limited purpose of safekeeping or administration of virtual currency, to the same extent the

credit union may lawfully hold or safeguard other assets for members or customers.

new text end

new text begin

(b) The commissioner may limit or condition the authority to provide virtual-currency

custody services under paragraph (a) only if the commissioner determines the activity is

conducted in an unsafe or unsound manner.

new text end

new text begin

Subd. 6.

new text end

new text begin

Segregation of assets.

new text end

new text begin

A credit union must structure virtual-currency custody

services to ensure that customer virtual currency and associated control mechanisms are

legally and operationally segregated from the credit union's assets and are not treated as the

credit union's property, consistent with the segregation of assets held in other custodial or

fiduciary capacities and the concept of control of controllable electronic records under

sections 336.12-101 to 336.12-107.

new text end

new text begin

Subd. 7.

new text end

new text begin

Third-party service providers.

new text end

new text begin

A credit union may engage one or more

qualified third-party service providers or subcustodians to facilitate virtual-currency custody

services, provided the credit union retains oversight responsibility and ensures compliance

with this section.

new text end

new text begin

Subd. 8.

new text end

new text begin

Supervision and examination.

new text end

new text begin

A credit union's virtual-currency custody

services are subject to examination by the commissioner as part of the regular supervisory

process.

new text end

new text begin

Subd. 9.

new text end

new text begin

Construction.

new text end

new text begin

This section does not (1) authorize a credit union to engage in

activities otherwise prohibited by law, or (2) alter the legal characterization of virtual

currency under state or federal law.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to

virtual-currency custody services commenced on or after that date.

new text end

Sec. 7.

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:

new text end

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.

new text end

new text begin

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

new text end

new text begin

(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.

new text end

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.

new text end

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.

new text end

new text begin

Borrower requests for information.

new text end

new text begin

(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:

new text end

new text begin

(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:

new text end

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:

new text end

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

new text end

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.

new text end

new text begin

Borrower complaints and inquiries.

new text end

new text begin

(a) A servicer must establish and maintain:

new text end

new text begin

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

in a manner that complies with this section;

new text end

new text begin

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

direct complaints and inquiries; and

new text end

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

new text end

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:

new text end

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

new text end

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;

new text end

new text begin

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

the underlying note and mortgage;

new text end

new text begin

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

new text end

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. 8.

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. 9.

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. 10.

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. 11.

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. 12.

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. 13.

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. 14.

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. 15.

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. 16.

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

Subd. 10.

Annual report.

(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 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. 17.

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. 18.

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. 19.

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. 20.

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. 21.

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. 22.

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) Each 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 each person handling rental home marketplace guarantee losses to provide

knowledgeable, fair, and objective service. Providers must maintain records demonstrating

completion of the training under this paragraph by each person handling rental home

marketplace guarantee losses.

new text end

Sec. 23.

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. 24.

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. 25.

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. 26.

new text begin

[59E.07] ENFORCEMENT.

new text end

new text begin

The commissioner must ensure rental home marketplace guarantees comply with this

chapter pursuant to the commissioner's powers under chapter 45. The commissioner must

ensure reimbursement insurance policies insuring rental home marketplace guarantees

comply with applicable law pursuant to the commissioner's powers under chapters 45 and

60A.

new text end

Sec. 27.

Minnesota Statutes 2024, section 60A.07, is amended by adding a subdivision to

read:

new text begin

Subd. 12.

new text end

new text begin

Social Security number and individual taxpayer identification number.

new text end

new text begin

(a)

If an insurance company requires a new customer to provide a Social Security number on

an application for insurance coverage, the insurance company must accept an individual

taxpayer identification number in lieu of a Social Security number.

new text end

new text begin

(b) This subdivision does not prohibit an insurance company from using the insurance

company's applicable underwriting criteria in determining the eligibility, classification, or

rating of any applicant for insurance.

new text end

new text begin

(c) This subdivision does not require an insurer to alter the insurer's existing applications

for insurance.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, and applies to insurance

coverage offered, issued, or renewed on or after that date.

new text end

Sec. 28.

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 in the event of a

cancellation under paragraphs (a) and (c). 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. 29.

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. 30.

Minnesota Statutes 2024, section 65A.27, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections
65A.27
to
deleted text begin
65A.302
deleted text end
new text begin
65A.304
new text end
,
the following

terms have the meanings given.

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. 31.

new text begin

[65A.304] DAMAGE BY PEACE OFFICERS; MITIGATION.

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) "Industrial hygienist" means an individual who has:

new text end

new text begin

(1) a certified industrial hygienist credential from the Board for Global EHS

Credentialing; or

new text end

new text begin

(2) an equivalent certification from a nationally or internationally recognized accrediting

body demonstrating competency in the anticipation, recognition, evaluation, and control of

occupational and environmental health hazards.

new text end

new text begin

(c) "Just compensation" has the meaning given in section 626.74, subdivision 1, clause

(1).

new text end

new text begin

(d) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph

(c).

new text end

new text begin

Subd. 2.

new text end

new text begin

Exclusion prohibited.

new text end

new text begin

(a) A policy of homeowner's insurance must not exclude

coverage for property damage if the homeowner is an innocent third party entitled to just

compensation under section 626.74 and the damage results from a peace officer's use of

chemical irritants, smoke screens, or diversionary devices.

new text end

new text begin

(b) This section does not affect a local government's duty to pay just compensation under

section 626.74.

new text end

new text begin

(c) Paragraph (a) does not prohibit a civil authority exclusion or other policy provision

as long as the coverage for just compensation is not excluded.

new text end

new text begin

Subd. 3.

new text end

new text begin

Mitigation.

new text end

new text begin

(a) Under a policy of homeowner's insurance, an insurer must allow

a homeowner to choose a mitigation contractor and, if necessary, an industrial hygienist to

assess and remediate damage due to a peace officer's use of chemical irritants, smoke screens,

or diversionary devices, when the homeowner is owed just compensation under section

626.74.

new text end

new text begin

(b) The work performed by a mitigation contractor or industrial hygienist under this

subdivision must follow recognized industry standards and, if applicable, chemical

manufacturer guidelines.

new text end

new text begin

Subd. 4.

new text end

new text begin

Insurer subrogation and reimbursement.

new text end

new text begin

(a) If an insurer pays benefits to

or on behalf of a homeowner for damage described in this section, the insurer is subrogated

as a matter of law to the homeowner's right to recover just compensation from the responsible

local government unit.

new text end

new text begin

(b) Payment made by an insurer under a policy of homeowner's insurance for damage

described in this section, if made in good faith and after reasonable investigation, is presumed

reasonable and necessary and must be reimbursed by the responsible local government unit.

Reimbursement may be denied only upon proof that the payment was obtained by fraud or

that the insurer acted in bad faith. If reimbursement is not made as required by this

subdivision, the insurer may bring an action to recover the amount paid and is entitled to

reasonable attorney fees, costs, and disbursements, including interest under section 60A.0811,

subdivision 2, paragraph (a).

new text end

new text begin

(c) If an insurer is reimbursed by a local government unit pursuant to this section, the

insurer must remit to the homeowner an amount equal to any deductible the homeowner

has paid toward the damage.

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. 32.

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. 33.

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) a 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) an 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) a 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) an individual who (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) a 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. 34.

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. 35.

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. 36.

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. 37.

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. 38.

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. 39.

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 that

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. 40.

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. 41.

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. 42.

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. 43.

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

A person 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.

A person must maintain data under this subdivision for at least the current calendar year

and the two preceding years.

new text end

Sec. 44.

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. 45.

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. 46.

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. 47.

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

ARTICLE 11

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 345A.26. 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 12

MISCELLANEOUS

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 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. 6.

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. 7.

Minnesota Statutes 2024, section 62J.96, is amended by adding a subdivision to

read:

new text begin

Subd. 4.

new text end

new text begin

Violation as deceptive practice.

new text end

new text begin

A violation of this section is an unfair or

deceptive trade practice under section 8.31, subdivision 1, and is enforceable by the attorney

general.

new text end

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.
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An organization may not

sell any paddle ticket for more than
deleted text begin
$2
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$5
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.

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(b) "Merchandise prize" does not include gift cards that can be redeemed for cash.

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Sec. 36.
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REPEALER.
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new text begin

Minnesota Statutes 2024, sections 48.158; and 62J.96, subdivision 3,

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are repealed.

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APPENDIX

Repealed Minnesota Statutes: S4365-1

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.

53B.69 DEFINITIONS.

Subd. 3b.

New customer.

"New customer" means a consumer transacting at a kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for less than 72 hours. After a 72-hour period has elapsed from the day of first signing up as a customer with a virtual currency kiosk operator, the customer will be considered an existing customer and no longer subject to the new customer transaction limit described in section 53B.75, subdivision 5, paragraph (a).

Subd. 3c.

Existing customer.

"Existing customer" means a consumer transacting at a kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for more than a 72-hour period. A new customer will automatically convert to an existing customer after the 72-hour period of first becoming a new customer. An existing customer is subject to the transaction limits described in section 53B.75, subdivision 5, paragraph (b).

53B.75 VIRTUAL CURRENCY KIOSKS.

Subdivision 1.

Disclosures on material risks.

(a) Before entering into an initial virtual currency transaction for, on behalf of, or with a person, the virtual currency kiosk operator must disclose in a clear, conspicuous, and easily readable manner all material risks generally associated with virtual currency. The disclosures must be displayed on the screen of the virtual currency kiosk with the ability for a person to acknowledge the receipt of the disclosures. The disclosures must include at least the following information:

(1) virtual currency is not legal tender, backed or insured by the government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation protections;

(2) some virtual currency transactions are deemed to be made when recorded on a public ledger, which may not be the date or time when the person initiates the transaction;

(3) virtual currency's value may be derived from market participants' continued willingness to exchange fiat currency for virtual currency, which may result in the permanent and total loss of a particular virtual currency's value if the market for virtual currency disappears;

(4) a person who accepts a virtual currency as payment today is not required to accept and might not accept virtual currency in the future;

(5) the volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period;

(6) the nature of virtual currency means that any technological difficulties experienced by virtual currency kiosk operators may prevent access to or use of a person's virtual currency; and

(7) any bond maintained by the virtual currency kiosk operator for the benefit of a person may not cover all losses a person incurs.

(b) The virtual currency kiosk operator must provide an additional disclosure, which must be acknowledged by the person, written prominently and in bold type, and provided separately from the disclosures above, stating: "WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME, AND INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY."

Subd. 2.

Disclosures.

(a) A virtual currency kiosk operator must disclose all relevant terms and conditions generally associated with the products, services, and activities of the virtual currency kiosk operator and virtual currency. A virtual currency kiosk operator must make the disclosures in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following:

(1) the person's liability for unauthorized virtual currency transactions;

(2) the person's right to:

(i) stop payment of a virtual currency transfer and the procedure to stop payment;

(ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of the transaction; and

(iii) prior notice of a change in the virtual currency kiosk operator's rules or policies;

(3) under what circumstances the virtual currency kiosk operator, without a court or government order, discloses a person's account information to third parties; and

(4) other disclosures that are customarily provided in connection with opening a person's account.

(b) Before each virtual currency transaction for, on behalf of, or with a person, a virtual currency kiosk operator must disclose the transaction's terms and conditions in a clear, conspicuous, and easily readable manner. The disclosures under this subdivision must address at least the following:

(1) the amount of the transaction;

(2) any fees, expenses, and charges, including applicable exchange rates;

(3) the type and nature of the transaction;

(4) a warning that once completed, the transaction may not be reversed;

(5) a daily virtual currency transaction limit of no more than $2,000;

(6) the difference in the virtual currency's sale price compared to the current market price; and

(7) other disclosures that are customarily given in connection with a virtual currency transaction.

Subd. 3.

Acknowledgment of disclosures.

Before completing a transaction, a virtual currency kiosk operator must ensure that each person who engages in a virtual currency transaction using the virtual currency operator's kiosk acknowledges receipt of all disclosures required under this section via confirmation of consent. Additionally, upon a transaction's completion, the virtual currency kiosk operator must provide a person with a physical receipt, or a virtual receipt sent to the person's email address or SMS number, containing the following information:

(1) the virtual currency kiosk operator's name and contact information, including a telephone number to answer questions and register complaints;

(2) the type, value, date, and precise time of the transaction, transaction hash, and each virtual currency address;

(3) the fees charged;

(4) the exchange rate;

(5) a statement of the virtual currency kiosk operator's liability for nondelivery or delayed delivery;

(6) a statement of the virtual currency kiosk operator's refund policy; and

(7) any additional information the commissioner of commerce may require.

Subd. 4.

Refunds for new customers.

A virtual currency kiosk operator must issue a refund to a new customer for the full amount of all transactions made within the 72-hour new customer time period, as described in section
53B.69, subdivision 3b
, upon request of the customer. In order to receive a refund under this subdivision, a customer must:

(1) have been fraudulently induced to engage in the virtual currency transactions; and

(2) within 14 days of the last transaction to occur during the 72-hour new customer time period, contact the virtual currency kiosk operator and a government or law enforcement agency to inform them of the fraudulent nature of the transaction.

Subd. 5.

Transaction limits.

(a) There is an established maximum daily transaction limit of $2,000 for each new customer of a virtual currency kiosk.

(b) The maximum daily transaction limit of an existing customer shall be decided by each virtual currency kiosk operator in compliance with federal law.

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.

62J.96 ACCESS TO 340B DRUGS.

Subd. 3.

Expiration.

This section expires July 1, 2027.

237.065 RATE FOR SCHOOL OR PURCHASING COOPERATIVE.

Subdivision 1.

Basic service; flat rate.

Each telephone company that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to 12th grade shall provide, upon request, additional service to the school that is sufficient to ensure access to basic telephone service from each classroom and other areas within the school, as determined by the school board. Each company shall set a flat rate for this additional service that is less than the company's flat rate for an access line for a business and the same as or greater than the company's flat rate for an access line for a residence in the same local telephone service exchange. When a company's flat rates for businesses and residences are the same, the company shall use the residential rate for service to schools under this section. The rate required under this section is available only for a school that installs additional service that includes access to basic telephone service from each classroom and other areas within the school, as determined by the school board.

Subd. 2.

Basic and advanced telecommunication service; reduced rate.

(a) Notwithstanding the provisions of sections
237.09
,
237.14
,
237.60, subdivision 3
, and
237.74
, each telephone company and telecommunications carrier that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to grade 12, a public library, or a telecommunication services purchasing cooperative may provide, upon request, basic and advanced telecommunication services at reduced or no cost to that school, library, or may provide, upon request, advanced telecommunication services at reduced wholesale rates to the members of a telecommunication services purchasing cooperative. For purposes of this section, a "telecommunication services purchasing cooperative" means a cooperative organized under section
308A.210
. A school or library receiving telecommunications services at reduced or no cost may not resell or sublease the discounted services. No members of a telecommunication services purchasing cooperative may resell or sublease the discounted services. A purchasing cooperative is not required to negotiate or provide a uniform rate for its members. Telecommunications services shall be provided in accordance with Public Law 104-104, and the regulations of the Federal Communications Commission adopted under the act.

(b) An agent that provides telecommunications services to a school or library may request the favorable rate on behalf of and for the exclusive benefit of the school or library. The school or library must authorize the agent to make the request of the local telephone company or telecommunications carrier. The telephone company or telecommunications carrier is not required to offer the same price discount to the agent that it would offer to the school district or library. An agent that receives a price discount for telecommunications services on behalf of a school or library may only resell or sublease the discounted services to that school or library.

(c) For the purposes of this subdivision, "school" includes a public school as defined in section
120A.05
, nonpublic, and church or religious organization schools that provide instruction in compliance with sections
120A.22
,
120A.24
, and
120A.41
.

237.066 STATE GOVERNMENT PRICING PLANS.

Subdivision 1.

Purpose.

A state government or Tribal government telecommunications pricing plan is authorized and found to be in the public interest as it will:

(1) provide and ensure availability of high-quality, technologically advanced telecommunications services at a reasonable cost to the state or Tribal government; and

(2) further the state telecommunications goals as set forth in section
237.011
.

Subd. 2.

Program participation.

A state government or Tribal government telecommunications pricing plan may be available to serve individually or collectively: state agencies; Tribal governments; educational institutions, including public schools and Tribal schools complying with section
120A.05, subdivision 9
, 11, 13, or 17, and nonpublic schools complying with sections
120A.22
,
120A.24
, and
120A.41
; private colleges; public corporations; and political subdivisions of the state or a Tribal Nation. Plans shall be available to carry out the commissioner of administration's duties under sections
16E.17
and
16E.18
and shall also be available to those entities not using the commissioner for contracting for telecommunications services.

Subd. 3.

Rates.

Notwithstanding section
237.09
,
237.14
,
237.60, subdivision 3
, or
237.74
, a telephone company or a telecommunications carrier may, individually or in cooperation with other telephone companies or telecommunications carriers, develop and offer basic or advanced telecommunications services at discounted or reduced rates as a state government or Tribal government telecommunications pricing plan. Any telecommunications services provided under any state government or Tribal government telecommunications pricing plan shall be used exclusively by the entities described in subdivision 2 subject to the plan solely for the entities' own use and shall not be made available to any other entities by resale, sublease, or in any other way.

Subd. 4.

Applicability to other customers.

A telephone company or telecommunications carrier providing telecommunications services under a state government or Tribal government telecommunications pricing plan is not required to provide any other person or entity those services at the rates made available to the state or Tribal government.

Subd. 5.

Commission review.

(a) The terms and conditions of any state government or Tribal government telecommunications pricing plan must be submitted to the commission for review and approval within 90 days before implementation to:

(1) ensure that the terms and conditions benefit the state or Tribal Nation and not any private entity;

(2) ensure that the rates for any telecommunications service in any state government or Tribal government telecommunications pricing plan are at or below any applicable tariffed rates; and

(3) ensure that the state telecommunications or Tribal government pricing plan meets the requirements of this section and is in the public interest.

(b) The commission shall reject any state government or Tribal government telecommunications pricing plan that does not meet the criteria in paragraph (a).

237.067 ESTABLISHMENT EXEMPT FROM REGULATION.

Subdivision 1.

Definition.

For purposes of this section, "establishment" means an individual hotel, motel, restaurant, lodging house, boarding house, resort, or place of refreshment licensed under chapter 157.

Subd. 2.

Exemption; conditions.

An establishment that provides telephone service to patrons on the premises of the establishment is not subject to regulation under this chapter, except that the establishment:

(1) shall comply with the requirement of section
237.06
that rates charged must be fair and reasonable;

(2) shall provide notice of charges and service providers to patrons as required in section
325F.99
; and

(3) is subject to the complaint and investigation procedures of section
237.081
.

237.071 SPECIAL PRICING.

Except as prohibited by section
237.60, subdivision 3
, prices unique to a particular customer or group of customers may be allowed for noncompetitive services and for services subject to emerging competition when differences in the cost of providing a service or a service element justifies a different price for a particular customer or group of customers. Individual pricing for services subject to emerging competition may be allowed when a uniform price should not be required because of market conditions. Unique or individual prices for services or service elements in effect before July 1, 1989, are deemed to have been approved under this section.

237.072 LIMITATION ON RATE CHANGE.

(a) After December 15, 1997, the commission, notwithstanding any provision to the contrary, shall not allow an incumbent telephone company with more than 1,000,000 access lines in Minnesota to change its retail rates for telecommunications services without a determination of its revenue requirement pursuant to section
237.075
unless the incumbent telephone company is regulated pursuant to sections
237.76
to
237.773
.

(b) If, prior to December 15, 1997, the incumbent telephone company petitions the commission to become subject to an alternative regulation plan under sections
237.76
to
237.773, paragraph (a
) shall not apply to the petitioning company until 270 days after the date of the filing of the petition.

237.075 RATE CHANGE.

Subdivision 1.

Notice.

Unless the commission otherwise orders, no telephone company shall change a rate which has been duly established under this chapter, except upon 60 days' notice to the commission. The notice shall include statements of facts, expert opinions, substantiating documents, and exhibits, supporting the change requested, and state the change proposed to be made in the rates then in force and the time when the modified rates will go into effect. The filing telephone company shall give written notice, as approved by the commission, of the proposed change to the governing body of each municipality and county in the area affected. All proposed changes shall be shown by filing new schedules or shall be plainly indicated upon schedules on file and in force at the time.

Subd. 2.

Suspension of proposed rate; hearing; final determination defined.

(a) Whenever there is filed with the commission as provided in subdivision 1 a schedule modifying or resulting in a change in any rate then in force, the commission may suspend the operation of the schedule by filing with the schedule of rates and delivering to the affected telephone company a statement in writing of its reasons for the suspension at any time before the rates become effective. The suspension shall not be for a longer period than ten months beyond the initial filing date except as provided in paragraph (b). During the suspension the commission shall determine whether all questions of the reasonableness of the rates requested raised by persons deemed interested or by the department can be resolved to the satisfaction of the commission. If the commission finds that all significant issues raised have not been resolved to its satisfaction, or upon petition by ten percent of the affected customers or 250 affected customers, whichever is less, it shall refer the matter to the Office of Administrative Hearings with instructions for a public hearing as a contested case pursuant to chapter 14, except as otherwise provided in this section. The commission may order that the issues presented by the proposed rate changes be bifurcated into two separate hearings as follows: (1) determination of the telephone company's revenue requirements and (2) determination of the rate design. Upon issuance of both administrative law judge reports, the issues shall again be joined for consideration and final determination by the commission. All prehearing discovery activities of state agency intervenors shall be consolidated and conducted by the Department of Commerce. If the commission does not make a final determination concerning a schedule of rates within ten months after the initial filing date, the schedule shall be deemed to have been approved by the commission; except if a settlement has been submitted to and rejected by the commission, the schedule is deemed to have been approved 12 months after the initial filing.

(b) If the commission finds that it has insufficient time during the suspension period to make a final determination of a case involving changes in general rates because of the need to make final determinations of other previously filed cases involving changes in general rates under this section or section
216B.16
, the commission may extend the suspension period to the extent necessary to allow itself 20 working days to make the final determination after it has made final determinations in the previously filed cases. An extension of the suspension period under this paragraph does not alter the setting of interim rates under subdivision 3.

(c) For the purposes of this section, "final determination" means the initial decision of the commission and not any order which may be entered by the commission in response to a petition for rehearing or other further relief. The commission may further suspend rates until it determines all those petitions.

Subd. 3.

Interim rate; refund.

Notwithstanding any order of suspension of a proposed increase in rates, the commission shall order an interim rate schedule into effect not later than 60 days after the initial filing date. The commission shall order the interim rate schedule ex parte without a public hearing. Notwithstanding the provisions of sections
216.25
and
237.25
, no interim rate schedule ordered by the commission pursuant to this subdivision shall be subject to an application for a rehearing or an appeal to a court until the commission has rendered its final determination. Unless the commission finds that exigent circumstances exist, the interim rate schedule shall be calculated using the proposed test-year cost of capital, rate base, and expenses, except that it shall include: (1) a rate of return on common equity for the company equal to that authorized by the commission in the company's most recent rate proceeding; (2) rate base or expense items the same in nature and kind as those allowed by a currently effective order of the commission in the company's most recent rate proceeding; and (3) no change in the existing rate design, except for products and services offered by nonregulated competitors. In the case of a company which has not been subject to a prior commission determination or has not had a general rate adjustment in the preceding three years, the commission shall base the interim rate schedule on its most recent determination concerning a similar company.

If, at the time of its final determination, the commission finds that the interim rates are in excess of the rates in the final determination, the commission shall order the company to refund the excess amount collected under the interim rate schedule, including interest on it which shall be at the rate of interest determined by the commission. The company shall commence distribution of the refund to its customers within 120 days of the final order, not subject to rehearing or appeal. If, at the time of its final determination, the commission finds that the interim rates are less than the rates in the final determination, the commission shall prescribe a method by which the company will recover the difference in revenues from the date of the final determination to the date the new rate schedules are put into effect.

If the telephone company fails to make refunds within the period of time prescribed by the commission, the commission shall sue therefor and may recover on behalf of all persons entitled to a refund. In addition to the amount of the refund and interest due, the commission shall be entitled to recover reasonable attorney's fees, court costs and estimated cost of administering the distribution of the refund to persons entitled thereto. No suit under this subdivision shall be maintained unless instituted within two years after the end of the period of time prescribed by the commission for repayment of refunds. The commission shall not order an interim rate schedule in a general rate case into effect as provided by this subdivision until at least four months after it has made a final determination concerning any previously filed change of the rate schedule or the change has otherwise become effective under subdivision 2, unless:

(1) the commission finds that a four-month delay would unreasonably burden the company, its customers, or its shareholders and that an earlier imposition of interim rates is therefore necessary; or

(2) the company files a second general rate case at least 12 months after it has filed a previous general rate case for which the commission has extended the suspension period under subdivision 2.

Subd. 4.

Burden of proof.

The burden of proof to show that the rate change is just and reasonable shall be upon the telephone company seeking the change.

Subd. 5.

Determination after finding rate unacceptable.

If, after the hearing, the commission finds the rates to be unjust or unreasonable or discriminatory, the commission shall determine the rates to be charged or applied by the telephone company for the service in question and shall fix them by order to be served upon the telephone company. The rates shall thereafter be observed until changed, as provided by this chapter. In no event shall the rates exceed the level of rates requested by the telephone company, except that individual rates may be adjusted upward or downward. Rate design changes shall be prospective from the effective date of the new rate schedules approved by the commission.

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers under this chapter to determine just and reasonable rates for telephone companies, shall give due consideration to the public need for adequate, efficient, and reasonable service and to the need of the telephone company for revenue sufficient to enable it to meet the cost of furnishing the service, including adequate provision for depreciation of its telephone company property used and useful in rendering service to the public, and to earn a fair and reasonable return upon the investment in the property. In determining the rate base upon which the telephone company is to be allowed to earn a fair rate of return, the commission shall give due consideration to evidence of the cost of the property when first devoted to public use, to prudent acquisition cost to the telephone company, less appropriate depreciation on each, to construction work in progress, to offsets in the nature of capital provided by sources other than the investors, and to other expenses of a capital nature. To the extent that construction work in progress is included in the rate base, the income used in determining the actual return on the telephone company property may include an allowance for funds used during construction. For purposes of determining rate base, the commission shall consider the original cost of telephone company property included in the base and shall make no allowance for its estimated current replacement value.

Subd. 7.

Advertising.

The commission shall not make an allowance for operating expenses incurred by a telephone company for institutional advertising.

Subd. 8.

Charitable contribution.

The commission shall allow as operating expenses only 50 percent of the qualified charitable contributions which the commission deems prudent for the use of any community chest, corporation, trust, fund, association, foundation, or organization, and only as long as the use is exclusively for religious, charitable, public cemetery, scientific, literary, artistic, or educational purposes or for the prevention of cruelty to children or animals. No part of a charitable contribution may inure to the benefit of any private stockholder or individual.

Subd. 9.

Election on regulation; cooperative, municipal, independent.

For the purposes of this section, "telephone company" shall not include a cooperative telephone association organized under the provisions of chapter 308A, an independent telephone company, or a municipal, unless the cooperative telephone association, independent telephone company, or municipal makes the election provided in this subdivision.

A cooperative telephone association may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by the board of directors of the association in accordance with the procedures for amending the articles of incorporation contained in section
308A.135
, excluding the filing requirements; or (2) approved by a majority of members or stockholders voting by mail ballot initiated by petition of no fewer than five percent of the members or stockholders of the association. The ballot to be used for the election shall be approved by the board of directors and the department. The department shall mail the ballots to the association's members who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the board of directors. On this date, representatives of the department and the association shall count the ballots. If a majority of the association's members who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section, the term "member or stockholder" shall mean either the member or stockholder of record or the spouse of the member or stockholder unless the association has been notified otherwise in writing.

A municipal may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by resolution of the governing body of the municipality; or (2) approved by a majority of the customers of the municipal voting by mail ballot initiated by petition of no fewer than 20 percent of the customers of the municipal. The ballot to be used for the election shall be approved by the governing body of the municipality and the department. The department shall mail the ballots to the municipal's customers who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the governing body of the municipality. On this date, representatives of the department and the municipal shall count the ballots. If a majority of the customers of the municipal who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section, the term "customer" shall mean either the person in whose name the telephone service is registered or the spouse of the person unless the municipal utility has been notified otherwise in writing.

An independent telephone company may elect to become subject to rate regulation by the commission pursuant to this section. The election shall be (1) approved by the board of directors of the company in accordance with the procedures for amending the articles of incorporation contained in sections
302A.133
to
302A.139
, excluding the filing requirements; or (2) approved by a majority of subscribers voting by mail ballot initiated by petition of no fewer than five percent of the subscribers of the company. The ballot to be used for the election shall be approved by the board of directors and the department. The department shall mail the ballots to the company's subscribers who shall return the ballots to the department. The department will keep the ballots sealed until a date agreed upon by the department and the board of directors. On this date, representatives of the department and the company shall count the ballots. If a majority of the company's subscribers who vote elect to become subject to rate regulation by the commission, the election shall be effective 30 days after the date the ballots are counted. For purposes of this section the term "subscriber" shall mean either the person in whose name the telephone service is registered or the spouse of the person unless the independent telephone company has been notified otherwise in writing.

Subd. 10.

Intervenor reimbursement.

The commission may order a telephone company to pay all or a portion of a party's intervention costs not to exceed $20,000 per intervention in any general rate case when the commission finds that the intervenor has materially assisted the commission's deliberation and the intervenor has insufficient financial resources to afford the costs of intervention. No entity which provides telephone services of any kind is eligible for reimbursement of intervention costs under this subdivision.

Subd. 11.

Recovery of expenses of segregating billing charges.

The public utilities commission shall allow each telephone company and independent telephone company subject to the requirements of section
325F.692
to automatically adjust tariffs or rates paid by information service providers to reflect the reasonable cost to the company to comply with section
325F.692
.

237.14 RATE FOR SERVICE TO OFFICER.

A telephone company may furnish service free or at reduced rates to its officers, agents, or employees in furtherance of their employment, but it shall charge full schedule rates without discrimination for all other services.

237.15 INVESTIGATION AND HEARING; AUTHORITY DELEGATED.

The department shall whenever it deems the same necessary determine the value of all the property of any telephone company devoted to the public use, and in so doing it shall, after notice to the telephone company, hold such public hearing as will give all interested parties a chance to furnish evidence and be heard. For the purpose of this chapter the department is authorized to appoint engineers, examiners, experts, clerks, accountants, and other assistants as it may deem necessary at such rates of compensation as it may prescribe.

In the discharge of their duties such appointees shall have every power, of any inquisitorial nature granted in this chapter to the department. The department may conduct any number of investigations contemporaneously through its individual members or appointees, and may delegate to its individual members and employees the taking of all testimony on any investigation or hearing.

237.16 LOCAL EXCHANGE COMPETITION, RULES.

Subd. 9.

Universal service fund.

The commission shall establish and require contributions to a universal service fund, to be supported by all providers of telephone services, whether or not they are telephone companies under section
237.01
, including, but not limited to, local telephone companies, independent telephone companies, cooperative telephone companies, municipal telephone companies, telecommunications carriers, radio common carriers, personal communication service providers, and cellular carriers. Services that should be considered for inclusion as universal include, at a minimum, single-party service including access, usage and touch-tone capability; line quality capable of carrying facsimile and data transmissions; equal access; emergency services number capability; statewide telecommunications relay service for people with hearing loss; and blocking of long-distance toll services. The fund must be administered and distributed in accordance with rules adopted by the commission and designed to preserve the availability of universal service throughout the state. Any state universal service fund must be coordinated with any federal universal service fund and be consistent with section 254(b)(1) to (5) of the federal Telecommunications Act of 1996, Public Law 104-104.

237.22 DEPRECIATION; AMORTIZATION.

(a) For purposes of a proceeding to determine or investigate any wholesale or retail rate, or to set any universal service support level, the commission may fix proper and adequate rates and methods of depreciation and amortization with respect to a telephone company's property.

(b) All telephone companies shall retain data in sufficient detail for the purpose of determining depreciation accruals and reserves by depreciable telephone plant account. Depreciable plant accounts are those specified by the Federal Communications Commission for the class to which a telephone company belongs. All telephone companies shall maintain, and have available for inspection by the commission upon request, adequate accounts and records related to depreciation practices as defined herein.

237.231 SALE OF LOCAL EXCHANGE SERVICE.

Subdivision 1.

Commission approval.

A Class A telephone company may not sell a local exchange service territory without receiving the prior consent of the commission. For the purposes of this section, a Class A telephone company is a telephone company which has annual revenues from regulated telecommunication operations of $100,000,000 or more, as defined by the Federal Communications Commission in Code of Federal Regulations, title 47, section
32.11
, paragraphs (a)(1) and (e).

Subd. 2.

Notice of intended sale.

At least 90 days prior to applying to the commission for consent to a proposed sale or acquisition of a local exchange service, the selling telephone company must provide notice to its customers in that local exchange of its intent to sell and identify the affected local exchange, and the name of the proposed buyer. The notice must be on a separate document and included in the company's monthly billings to customers. The commission must approve the form of all notices.

Subd. 3.

Resident poll.

At least 60 days prior to the hearing under subdivision 4, the telephone company proposing the sale of a local exchange service must provide each of its customers with a stamped envelope addressed to the commission and must inform the customer that the customer is encouraged to comment on the quality of service that has been provided in the local exchange service territory by the telephone company over the last 12 months.

Subd. 4.

Public hearing.

At least 30 days prior to the commission's deliberations about a proposed sale or acquisition of a local exchange service territory, the commission must hold a public hearing at a location within the affected local exchange service territory allowing the public an opportunity to be heard and to present any concerns or comments.

Subd. 5.

Requirements for consent.

The commission may not give consent to a sale of a service territory unless, at a minimum, it finds all of the following:

(1) the quality of service provided by the telephone company servicing the local exchange service territory has substantially complied with all applicable quality of service standards adopted by rule by the commission for the previous calendar year;

(2) the proposed buyer is financially responsible and capable of making necessary investments to maintain quality service at levels required by rule; and

(3) the proposed buyer demonstrates that it has an adequate number of properly trained employees to maintain service at required levels.

The commission shall, as a condition of its consent, require a proposed buyer to enter into binding commitments obligating the buyer to maintain minimum levels of investment and staffing needed to meet the commission's quality of service rules. These commitments are in addition to any other conditions that the commission may impose.

237.59 CLASSIFICATION OF COMPETITIVE SERVICE; HEARING.

Subdivision 1.

Emerging competitive service.

(a) The following services provided by the telephone company are subject to emerging competition unless and until reclassified as noncompetitive or subject to effective competition under this section:

(1) apartment door answering services;

(2) automatic call distribution;

(3) billing and collection services;

(4) call waiting, call forwarding, and three-way calling services for businesses with three or more lines;

(5) central office-based pricing packages providing switched business access lines which substitute for private branch exchange systems which may or may not share intelligence with customer premises equipment;

(6) command link-type services for network reconfiguring to rearrange cross-connections between channel services;

(7) custom network services and special assemblies;

(8) Digicom switchnet services for full duplex, synchronous, information transport;

(9) direct customer access services for telephone number information;

(10) teleconferencing services;

(11) inter-LATA and intra-LATA message toll service;

(12) inter-LATA and intra-LATA private line services;

(13) inter-LATA and intra-LATA wide area telephone service;

(14) mobile radio services;

(15) operator services, excluding local operator services;

(16) public pay telephone services, excluding charges for access to the central office;

(17) special construction of facilities;

(18) systems for automatic dialing; and

(19) versanet-type service access line involving continuous monitoring and transmission of data from customer's premises to the central office.

(b) A service classified as subject to emerging competition before June 1, 1994, retains that classification unless and until it is reclassified pursuant to subdivision 3 or 10.

Subd. 1a.

CLASS service.

Notwithstanding the terms of subdivision 1, paragraph (b), CLASS services may be classified as competitive services only when so classified according to subdivision 3 or 10.

Subd. 2.

Petition.

(a) A telephone company, or the commission on its own motion, may petition to have a service of that telephone company classified as subject to effective competition or emerging competition. The petition must be served on the commission, the department, the Office of the Attorney General, and any other person designated by the commission. The petition must contain at least:

(1) a list of the known alternative providers of the service available to the company's customers; and

(2) a description of affiliate relationships with any other provider of the service in the company's market.

(b) At the time the company first offers a service, it shall also file a petition with the commission for a determination as to how the service should be classified. In the event that no interested party or the commission objects to the company's proposed classification within 20 days of the filing of the petition, the company's proposed classification of the service is deemed approved. If an objection is filed, the commission shall determine the appropriate classification after a hearing conducted pursuant to section
237.61
. In either event, the company may offer the new service to its customers ten days after the company files the price list and incremental cost study as provided in Minnesota Rules, parts
7811.2210
and
7812.2210
.

(c) A new service may be classified as subject to effective competition or emerging competition pursuant to the criteria set forth in subdivision 5. A new service must be regulated under the emerging competition provisions if it is not integrally related to the provision of adequate local service or access to the telephone network or to the privacy, health, or safety of the company's customers, whether or not it meets the criteria set forth in subdivision 5.

Subd. 3.

Expedited proceeding.

An interested party wishing to contest the change of classification of a service must file an objection with the commission within 20 days after the filing of the petition. If no party files an objection, the service must be reclassified in accordance with the petition. If a petition is contested, a telephone company that is the subject of a petition under subdivision 2 may request that the commission determine the classification of the service through an expedited proceeding under section
237.61
or a contested case hearing. If an expedited proceeding is requested, the commission must provide interested persons an opportunity to comment on the appropriateness of the process and the merits of the petition.

When an expedited proceeding is requested, the commission shall make a final determination within 60 days of the date on which all required information required under subdivision 2 is filed, unless during the 60 days the commission finds that a material issue of fact is in dispute, in which case it shall order that a contested case hearing be conducted to evaluate the petition.

Subd. 4.

Contested case hearing.

If a contested case hearing is held under this section, the commission shall make a final determination on the petition within eight months from the date the petitioning party requests a contested case hearing or from the date the commission orders a contested case hearing under subdivision 3. When a contested case hearing is requested in the petition or when the commission acts on its own motion, this deadline may be extended for no more than 60 days by agreement of all parties or by order of the commission if the commission finds that the case cannot be completed within the required time and that without an extension there is substantial probability that the public interest will be harmed.

Subd. 5.

Criteria.

(a) If a proposed classification is objected to pursuant to subdivision 2, paragraph (b), on the basis that the service does not meet the criteria of this subdivision, the commission shall consider, in determining whether a service is subject to either effective competition or emerging competition from available alternative service providers, the following factors:

(1) the number and sizes of alternative providers of service and affiliation to other providers;

(2) the extent to which services are available from alternative providers in the relevant market;

(3) the ability of alternative providers to make functionally equivalent or substitute services readily available at competitive rates, terms, and conditions of service;

(4) the market share, the ability of the market to hold prices close to cost, and other economic measures of market power; and

(5) the necessity of the service to the well-being of the customer.

(b) In order for the commission to find a service subject to effective competition alternative services must be available to over 50 percent of the company's customers for that service.

(c) In order for the commission to find a service subject to emerging competition alternative services must be available to over 20 percent of the company's customers for that service.

Subd. 6.

Burden of proof.

The classification of a service may not be changed so as to result in lessened regulation unless it is demonstrated by a preponderance of the evidence that the criteria of subdivision 5 have been met.

Subd. 8.

Interim relief.

A telephone company that has a petition pending before the commission under this section to declare a service competitive may decrease its price for that service without notice while the commission considers the petition. A company must provide an incremental cost study if requested by the commission. The commission shall suspend a company's right under this subdivision to decrease rates if, after an expedited hearing conducted under section
237.61
, the commission finds that the service is being priced below cost, or that the company has within the previous 12 months charged customers interim rates under this subdivision for the same service, and that service was determined by the commission to be noncompetitive.

Subd. 9.

Reporting requirements; exception.

A telephone company that offers only competitive services is not subject to the accounting and reporting requirements of this chapter unless otherwise ordered by the commission for good cause. A telephone company that offers both competitive and noncompetitive services is not subject to the reporting requirements with regard to its effective competition services unless otherwise ordered by the commission for good cause.

Subd. 10.

Regulation reinstated.

(a) The commission, on its own motion or upon complaint, shall reclassify a service as noncompetitive or as subject to emerging competition and reinstate, in whole or in part, rate regulation of the service if, after notice and hearing, the commission finds either:

(1) that the competitive market for that service, on review of the criteria found in subdivision 5, has failed so that rate regulation of that service is necessary to protect the interest of consumers, that it has considered the alternatives to rate regulation, and that the benefits of rate regulation outweigh the burdens of rate regulation; or

(2) that unreasonable discrimination has occurred between different areas of the state.

(b) In any proceeding to reclassify a service the person initiating the complaint has the burden of proving that the existing classification is inappropriate, except the telephone company providing the service has the burden of proving that the classification is appropriate when the proceeding is commenced by the commission on its own motion or when the complainant is the department or the attorney general.

237.66 DISCLOSURE OF LOCAL SERVICE OPTIONS.

Subdivision 1.

Notice to local residential customers.

A telephone company, when a residential customer initially requests service or requests a change of service, and annually in the form of a bill insert, shall advise each residential customer of the price of all service options available to that customer. The requirement of an annual notice through a bill insert does not apply to long-distance service.

Subd. 1a.

Notice to customer; right to require prior authorization.

Each residential and commercial telecommunications carrier customer may elect to require that the telephone company serving the customer receive authorization from the customer before a request to serve that customer from a different intrastate telecommunications carrier than the carrier currently serving the customer is processed.

Subd. 1c.

Timing of notice; new customer.

For new installations, a telephone company shall notify a residential or commercial customer of the right described in subdivision 1a when the customer initially requests intraexchange service. Any customer notification of the rights set forth in this section shall be provided utilizing uniform, competitively neutral language and the form, content, and style of the authorization shall be consistent with federal law and regulation and shall use language provided and approved by the public utilities commission.

Subd. 1d.

Change of election.

A customer may change the election under subdivision 1a at any time by notifying the telephone company of that decision. No separate charge may be imposed on the customer for electing to exercise the right described in subdivision 1a or to change that election, but a telephone company may recover in rates the reasonable costs of administering the election.

Subd. 2.

Filing; exemptions.

Copies of both the written notices and information provided to customer service representatives concerning the disclosure required under subdivision 1 must be filed once every 12 months with the commission and the department. Independent telephone companies, municipalities, and cooperative telephone associations are exempt from the requirements of this subdivision unless otherwise ordered by the commission.

Subd. 2a.

Call blocking.

A telephone company, when a residential customer initially requests service, shall advise each residential customer of the availability of all blocking options including 900 number blocking and international long-distance blocking.

Subd. 3.

Enforcement.

If, after an expedited procedure conducted under section
237.61
, the commission finds that a telephone company is failing to provide disclosure as required under subdivision 1, or the notification required under subdivision 1c, it shall order the company to take corrective action as necessary.

237.75 CLASS SERVICE.

Subdivision 1.

Definition.

For purposes of this section, "CLASS" or "custom local area signaling service" means a custom calling telephone service that is enabled through the installation or use of Signaling System 7 or similar signaling system and that includes at least the following features:

(1) automatic call back;

(2) automatic recall;

(3) calling number delivery, commonly known as "caller identification";

(4) calling number delivery blocking;

(5) customer originated call tracing;

(6) distinctive ringing/call waiting;

(7) selective call acceptance;

(8) selective call forwarding; and

(9) selective call rejection.

Subd. 2.

CLASS; terms and conditions.

By January 1, 1994, the commission shall determine the terms and conditions under which CLASS services may be provided by telephone companies in this state.

Subd. 3.

CLASS; capability and offering of service.

Each telephone company that provides local telephone service to persons located in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington shall obtain the capability to offer CLASS services in those counties by January 1, 1995, unless the commission approves an extension to a date certain.

237.766 PLAN DURATION AND EXTENSION.

Subdivision 1.

Plan duration.

An alternative regulation plan approved by the commission under section
237.764
must remain in force as approved for the term specified in the plan, which must be for no less than three years. Except as otherwise provided in this section, within six months prior to the termination of the plan the company shall give notice that it will propose a new plan, extend an existing plan, or revert to rate of return regulation.

Subd. 2.

New plan.

A new plan proposed by a company must be reviewed by the commission and, with the consent of the company, revised or approved consistent with sections
237.76
to
237.774
, except that the justification of earnings levels in section
237.764, subdivision 1
, paragraph (c), if required, and the provisions prohibiting rate increases at the initiation of or during the first three years of a plan contained in section
237.762
, shall not apply to a new plan. Any new plan must be approved by the commission and shall contain a mechanism under which a telephone company may reduce the rates for price-regulated services below the initial rates or prices or increase the rates or prices during the term of the plan. The plan must specify the reports required of the telephone company for review of the plan and specify that the telephone company shall maintain records in sufficient detail to facilitate the review. A new plan is not an extension, which must be made pursuant to subdivision 3.

Subd. 3.

Plan extension.

(a) Notwithstanding the provisions of its plan, a telephone company operating under a plan as of May 20, 2004, may elect to extend that plan for up to three years from the expiration date of the plan or until December 31, 2007, whichever is earlier. The election is effective upon notification to customers, the commission, the department, and the Office of the Attorney General. A telephone company must provide notification of its election within 30 days of May 20, 2004, or within six months of the expiration of its current or expired plan, whichever is later. Once a telephone company has elected to exercise the option provided under this subdivision, the company may elect at any time to terminate the plan by notifying customers, the commission, the department, and the Office of the Attorney General, in writing, six months prior to the termination date. Upon termination of a plan, the company shall be regulated as provided in this chapter.

(b) A telephone company may elect to extend a plan entered into after May 20, 2004, in lieu of proposing a new plan only if the company is in substantial compliance with the plan's service quality provisions and has met its infrastructure obligations under the plan. If the company elects to extend a plan, the rates for price-regulated services shall be capped at the rate levels in effect at the time the extension commences, provided, however, exceptions to a price cap contained in the plan being extended may remain in force. Unless otherwise specified in the plan, all other provisions of the plan shall continue in effect throughout the extension period. A plan may not be extended for less than one year or more than three years, and may only be extended once.

(c) The Department of Commerce or the Office of the Attorney General may file an objection to the extension with the commission if the company is not in substantial compliance with the service quality provisions of its plan or has not met its infrastructure obligations under the plan. An objection must be filed within 45 days of the company's notice of its intention to extend the plan.

(d) If an objection is filed by the Department of Commerce or the Office of the Attorney General, the commission may hold a hearing on the issues raised in the objection. The hearings shall be completed within 30 days of the deadline for filing the objections. If the commission finds that the issues raised in the objection are valid, it may reject the extension. If the commission finds that the issues raised in the objection are not valid, it shall approve the extension. The commission shall issue its decision within 15 days of the completion of the hearings concerning the objection.

(e) If the Department of Commerce or the Office of the Attorney General does not file an objection, the commission shall approve the extension within 60 days of the company's filing of its notice of its intention to extend the plan.

Subd. 4.

Joining an existing plan.

(a) A telephone company may elect to opt into another company's plan if:

(1) the chosen plan is from a company that is larger than the electing company; or

(2) the chosen plan is from an affiliated company; and

(3) the plan is currently in effect.

(b) A telephone company electing to enter an existing plan in lieu of proposing a new plan must operate under the terms of that plan for at least three years. If the original term of the existing plan was longer than three years, then the adopting company must operate under the plan for that longer period.

(c) A telephone company that desires to adopt an existing plan must give notice to the commission at least 90 days prior to the proposed effective date of the adoption and to its customers at least 60 days prior to the proposed effective date.

(d) The Department of Commerce or the Office of the Attorney General may file an objection to a telephone company that has previously operated under a plan from electing to opt into the plan of another company if the electing company is not in substantial compliance with the service quality provisions or has not met the infrastructure obligations of its plan.

(e) If a telephone company has not previously operated under an alternative regulation plan, the rates for its price-regulated services must be capped for the first three years at the rates in effect at the time of opt in, except for any plan provisions that address exogenous changes.

(f) Within 30 days of the electing company filing notice to the commission, interested parties may file comments identifying any aspect of the adoption that the party believes is contrary to the public interest. Reply comments may be filed within 45 days following the notice to the commission. The commission shall accept the adoption unless it finds adoption of the existing plan by the electing telephone company is not in the public interest, in which case it may reject or modify the election to opt into the provisions of the existing plan. If the commission modifies the election, the electing company may withdraw its proposed adoption of the existing plan by filing notice with the commission within 30 days of the commission's modification order.

237.768 PERIODIC FINANCIAL REPORT.

In addition to the reports required under section
237.766
, an alternative regulation plan may require a telephone company to file with the department an annual report of financial matters for the previous calendar year on or before May 1 of each year on report forms furnished by the department in the same manner as is required of other telephone companies on August 1, 1995. In addition, any company subject to a plan shall file with the commission and department a copy of any filings it has made to the Federal Communications Commission regarding the provisions of video programming provided through a video dial tone facility in Minnesota. An alternative regulation plan may require a telephone company to maintain its accounts in accordance with the system of accounts prescribed for the company by the commission under section
237.10
.

237.772 COST STUDY METHODOLOGY.

Subdivision 1.

Total service long-run incremental cost.

(a) For purposes of this chapter, total service long-run incremental cost (TSLRIC) means the total cost to the company of supplying a service, group of services, or basic network function. The term "long-run" means a period of time sufficient so that all inputs are avoidable based on the total increment of service, group of services, or basic network function and includes the relevant costs resulting from the company's decision to provide the service, group of services, or basic network function, holding constant the production levels of all other services, groups of services, or basic network functions provided by the company.

(b) A telephone company is not required to prepare or file TSLRIC or variable cost studies for all of its services as a prerequisite to filing a plan. However, the commission may order cost studies to be prepared for specific services as a condition of approval of the plan.

Subd. 2.

Petition for variable cost study.

To the extent that this section or the commission may require a company to provide a TSLRIC study, a company may submit a petition to the commission for permission to submit a variable cost study instead of a TSLRIC study. The commission shall grant the petition if the telephone company demonstrates:

(1) that a TSLRIC study is burdensome in relation to its annual revenue from the service involved;

(2) in the case of an existing service, that the service is no longer being offered to new customers; or

(3) if the telephone company shows other good cause.

237.775 EXISTING PLAN NOT AFFECTED.

An alternative regulation plan approved by the commission prior to May 1, 1997, is not subject to the amendments in Laws 1997, chapter 223; provided that a plan filed, revised, or renewed after that date is subject to those amendments.

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.