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SF 4

Minnesota Senate•Introduced

Summary

SF 4, which omnibus Commerce and Consumer Protections policy and appropriations, was introduced in the Senate on Jun 9, 2025 by Sen. Matt Klein (D). It last saw action on Jun 9, 2025: Laid on table.

Record

Text

SF 4 has no co-sponsors and has not gone to a roll call.

sf4/introduced.txt
06/05/25  REVISOR  RSI/AD  25-05685   as introduced
  SENATE
  STATE OF MINNESOTA
  SPECIAL SESSION  S.F. No. 4
       (SENATE AUTHORS: KLEIN)
  DATE       D-PG  OFFICIAL STATUS
       06/09/2025        6 Introduction and first reading
  7 Laid on table
A bill for an act
relating to commerce; establishing a budget for the Department of Commerce;
appropriating and transferring money for other commerce and Office of Cannabis
Management activities; adding, modifying, and eliminating various provisions
governing financial institutions, insurance, insurance holding companies, Medicare
supplement insurance, reinsurance, and commerce and consumer protection policy;
modifying certain fees; authorizing administrative rulemaking; classifying certain
data; requiring reports; making technical and conforming changes; amending
Minnesota Statutes 2024, sections 41A.09, subdivision 2a; 45.027, subdivisions
      1, 2, by adding a subdivision; 45.24; 46A.04; 47.20, subdivisions 2, 4a, 8; 47.77;
      53B.61; 55.07, by adding a subdivision; 58B.02, subdivision 8a; 60A.052,
      subdivision 1; 60A.201, subdivision 2, by adding a subdivision; 60D.09, by adding
      a subdivision; 60D.15, subdivisions 4, 7, by adding subdivisions; 60D.16,
      subdivision 2; 60D.17, subdivision 1; 60D.18, subdivision 3; 60D.19, subdivision
      4, by adding subdivisions; 60D.20, subdivision 1; 60D.217; 60D.22, subdivisions
      1, 3, 6, by adding a subdivision; 60D.24, subdivision 2; 60D.25; 62A.31,
      subdivisions 1b, 1f, 1h, 1p, 1r, 1u, 4; 62A.44, subdivision 2; 62A.65, subdivisions
      1, 2, by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision
      1; 62D.221, by adding a subdivision; 62E.21, by adding subdivisions; 62E.23,
      subdivisions 2, 3, by adding subdivisions; 62E.24, subdivisions 1, 2; 62E.25,
      subdivision 1; 62J.26, subdivision 3, by adding a subdivision; 62Q.73, subdivision
      4; 62V.06, subdivision 5; 65B.02, subdivision 7; 65B.05; 65B.06, subdivisions 1,
      2, 3; 65B.10, subdivision 2; 72A.20, by adding a subdivision; 80A.58; 80A.65,
      subdivision 2, by adding a subdivision; 80A.66; 80E.12; 82.63, subdivision 2;
      82B.19, subdivision 5; 168.27, by adding a subdivision; 216B.40; 216B.62, by
      adding a subdivision; 239.761, subdivisions 3, 4, 5, 6; 239.791, subdivision 11;
      296A.01, subdivisions 20, 23, 24; 297I.20, by adding a subdivision; 297I.40, by
      adding a subdivision; 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3;
      325G.24, subdivision 2; 334.01, subdivision 2; 550.136, subdivision 3; 551.06,
      subdivision 3; 571.922; Laws 2023, chapter 63, article 9, section 5; proposing
      coding for new law in Minnesota Statutes, chapters 45; 60D; 216B; 237; 239;
      325F; repealing Laws 2023, chapter 57, article 2, sections 13, as amended; 66, as
      amended.
       06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
COMMERCE FINANCE
  Section 1. APPROPRIATIONS
      The sums shown in the columns marked "Appropriations" are appropriated to the agencies
  and for the purposes specified in this article. The appropriations are from the general fund,
  or another named fund, and are available for the fiscal years indicated for each purpose.
  The figures "2026" and "2027" used in this article mean that the appropriations listed under
  them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
 "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
 is fiscal years 2026 and 2027. If an appropriation in this act is enacted more than once in
 the 2025 legislative session or a special session, the appropriation must be given effect only
 once.
APPROPRIATIONS
Available for the Year
Ending June 30
2026  2027
 Sec. 2. DEPARTMENT OF COMMERCE
 Subdivision 1. Total Appropriation  $   42,318,000 $     42,905,000
Appropriations by Fund
2026  2027
 General  39,346,000      39,997,000
 Workers'
 Compensation Fund  815,000  815,000
 Special Revenue  2,157,000       2,093,000
 The amounts that may be spent for each
 purpose are specified in the following
 subdivisions.
 Subd. 2. Financial Institutions  3,035,000        3,035,000
 (a) $400,000 each year is for a grant to Prepare
 and Prosper to develop, market, evaluate, and
 distribute a financial services inclusion
 program that (1) assists low-income and
 financially underserved populations to build
 savings and strengthen credit, and (2) provides
       Article 1 Sec. 2.  2
       06/05/25  REVISOR  RSI/AD  25-05685       as introduced
  services to assist low-income and financially
  underserved populations to become more
  financially stable and secure. Money
  remaining after the first year is available for
  the second year.
  (b) $543,000 each year is for additional
  adviser and broker-dealer examiners.
  Subd. 3. Administrative Services  11,300,000    11,978,000
  (a) $353,000 each year is for system
 modernization and cybersecurity upgrades for
 the unclaimed property program.
 (b) $249,000 each year is for the senior safe
 fraud prevention program.
 (c) $500,000 each year is to operate the
 Prescription Drug Affordability Board
 established under Minnesota Statutes, section
 62J.87.
 (d) $75,000 each year is for copper metal
 licensing and enforcement under Minnesota
 Statutes, section 325E.21.
 (e) $12,000 each year is for the intermediate
 blends of gasoline and biofuels report under
 Minnesota Statutes, section 239.791,
 subdivision 8.
 Subd. 4. Enforcement  8,098,000    8,098,000
Appropriations by Fund
 General  7,883,000     7,883,000
 Workers'
 Compensation  215,000  215,000
 (a) $215,000 each year is from the workers'
 compensation fund.
 (b) $225,000 each year is to operate the Mental
 Health Parity and Substance Abuse
       Article 1 Sec. 2.  3
       06/05/25  REVISOR  RSI/AD  25-05685       as introduced
  Accountability Office under Minnesota
  Statutes, section 62Q.465.
  (c) $197,000 each year is to maintain a student
  loan advocate position under Minnesota
  Statutes, section 58B.011.
  (d) $347,000 each year is for the common
  interest community ombudsperson established
  under Minnesota Statutes, section 45.0137.
  Subd. 5. Telecommunications  3,235,000    3,235,000
Appropriations by Fund
 General  1,142,000     1,142,000
 Special Revenue  2,093,000     2,093,000
 $2,093,000 each year is from the
 telecommunications access Minnesota fund
 under Minnesota Statutes, section 237.52,
 subdivision 1, in the special revenue fund for
 the following transfers:
 (1) $1,620,000 each year is to the
 commissioner of human services to
 supplement the ongoing operational expenses
 of the Commission of Deaf, DeafBlind, and
 Hard-of-Hearing. This transfer is subject to
 Minnesota Statutes, section 16A.281;
 (2) $290,000 each year is to the chief
 information officer to coordinate technology
 accessibility and usability;
 (3) $133,000 each year is to the Legislative
 Coordinating Commission for captioning
 legislative coverage. This transfer is subject
 to Minnesota Statutes, section 16A.281; and
 (4) $50,000 each year is to the Office of
 MN.IT Services for a consolidated access fund
 to provide grants or services to other state
       Article 1 Sec. 2.  4
       06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  agencies related to accessibility of web-based
  services.
  Subd. 6. Insurance  13,753,000      13,483,000
Appropriations by Fund
  General  13,089,000     12,883,000
  Workers'
  Compensation  600,000  600,000
  Special Revenue  64,000  -0-
  (a) $600,000 each year is from the workers'
 compensation fund.
 (b) $136,000 each year is to advance
 standardized health plan options.
 (c) $105,000 each year is to evaluate
 legislation for new mandated health benefits
 under Minnesota Statutes, section 62J.26.
 (d) $42,000 each year is to ensure health plan
 company compliance with Minnesota Statutes,
 section 62Q.47, paragraph (h).
 (e) $25,000 each year is to evaluate existing
 statutory health benefit mandates.
 (f) $20,000 each year is to pay Minnesota's
 membership dues to the National Conference
 of Insurance Legislators. The appropriations
 in this paragraph are onetime.
 (g) $64,000 the first year is from the family
 and medical benefit insurance account in the
 special revenue fund.
 Subd. 7. Weights and Measures Division  2,897,000      3,076,000
 $1,259,000 the first year and $1,438,000 the
 second year are for scale and packaging
 inspections.
 Sec. 3. OFFICE OF CANNABIS
 MANAGEMENT  $    33,443,000 $   36,350,000
       Article 1 Sec. 3.  5
       06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  $690,000 each year is for testing products
  regulated under Minnesota Statutes, section
  151.72, and chapter 342.
  $632,000 the first year and $696,000 the
  second year is for operating a state reference
  laboratory.
  $11,254,000 each year is for cannabis industry
  community renewal grants under Minnesota
  Statutes, section 342.70. Of this amount, up
 to three percent may be used to pay for
 administrative expenses incurred by the Office
 of Cannabis Management. The base for
 cannabis industry community renewal grants
 is $6,489,000 in each of fiscal years 2028 and
 2029.
 $1,000,000 each year is for transfer to the
 CanGrow revolving loan account established
 under Minnesota Statutes, section 342.73,
 subdivision 4. Of this amount, up to three
 percent may be used to pay for administrative
 expenses incurred by the Office of Cannabis
 Management.
 The base is $31,585,000 in each of fiscal years
 2028 and 2029.
   Sec. 4. Laws 2023, chapter 63, article 9, section 5, is amended to read:
 Sec. 5. OFFICE OF CANNABIS
 MANAGEMENT  $      21,614,000 $   17,953,000
 The base for this appropriation is $35,587,000
 in fiscal year 2026 and $38,144,000 in fiscal
 year 2027.
 $1,000,000 the second year is for cannabis
 industry community renewal grants under
 Minnesota Statutes, section 342.70. Of these
       Article 1 Sec. 4.  6
       06/05/25  REVISOR       RSI/AD  25-05685  as introduced
  amounts, up to three percent may be used for
  administrative expenses. Notwithstanding
  Minnesota Statutes, section 16A.28, this
  appropriation is available until June 30, 2026.
  The base for this appropriation is $15,000,000
  in fiscal year 2026 and each fiscal year
  thereafter.
  $1,000,000 each year is for transfer to the
  CanGrow revolving loan account established
 under Minnesota Statutes, section 342.73,
 subdivision 4. Of these amounts, up to three
 percent may be used for administrative
 expenses.
     EFFECTIVE DATE. This section is effective the day following final enactment.
   Sec. 5. APPROPRIATION; LEGISLATIVE COORDINATING COMMISSION.
     $200,000 in fiscal year 2025 is appropriated from the general fund to the Legislative
 Coordinating Commission to provide administrative support to the task force on homeowners
 and commercial property insurance under article 3, section 20. Upon the request of the task
 force, the commissioners of commerce, employment and economic development, and the
 Housing Finance Agency must provide technical support and expertise. This is a onetime
 appropriation and is available until June 30, 2026.
     EFFECTIVE DATE. This section is effective the day following final enactment.
ARTICLE 2
FINANCIAL INSTITUTIONS POLICY
   Section 1. Minnesota Statutes 2024, section 46A.04, is amended to read:
     46A.04 EXCEPTIONS AND EXEMPTIONS.
     (a) The requirements under section 46A.03, subdivisions 3, paragraph (b); 5, paragraph
 (a) (b); 9; and 10, do not apply to financial institutions that maintain customer information
 concerning fewer than 5,000 consumers.
     (b) This chapter does not apply to credit unions or federally insured depository
 institutions.
       Article 2 Section 1.  7
       06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 2. Minnesota Statutes 2024, section 47.20, subdivision 2, is amended to read:
      Subd. 2. Definitions. For the purposes of this section the terms defined in this subdivision
  have the meanings given them:
      (1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
  whether or not retained by the mortgagee or lender:
      (a) Any insurance premiums including but not limited to premiums for title insurance,
  fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
  excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
      (b) Abstracting, title examination and search, and examination of public records.
     (c) The preparation and recording of any or all documents required by law or custom
 for closing a conventional or cooperative apartment loan.
     (d) Appraisal and survey of real property securing a conventional loan or real property
 owned by a cooperative apartment corporation of which a share or shares of stock or a
 membership certificate or certificates are to secure a cooperative apartment loan.
     (e) A single service charge, which includes any consideration, not otherwise specified
 herein as an "actual closing cost" paid by the borrower and received and retained by the
 lender for or related to the acquisition, making, refinancing or modification of a conventional
 or cooperative apartment loan, and also includes any consideration received by the lender
 for making a borrower's interest rate commitment or for making a borrower's loan
 commitment, whether or not an actual loan follows the commitment. The term service charge
 does not include forward commitment fees. The service charge shall not exceed one percent
 of the original bona fide principal amount of the conventional or cooperative apartment
 loan, except that in the case of a construction loan, the service charge shall not exceed two
 percent of the original bona fide principal amount of the loan. That portion of the service
 charge imposed because the loan is a construction loan shall be itemized and a copy of the
 itemization furnished the borrower. A lender shall not collect from a borrower the additional
 one percent service charge permitted for a construction loan if it does not perform the service
 for which the charge is imposed or if third parties perform and charge the borrower for the
 service for which the lender has imposed the charge. A loan that meets the Federal Qualified
 Mortgage standards under Code of Federal Regulations, title 12, section 1026.43(e)(3), is
 exempt from the service charge limitations under this section.
     (f) Charges and fees necessary for or related to the transfer of real or personal property
 securing a conventional or cooperative apartment loan or the closing of a conventional or
       Article 2 Sec. 2.  8
       06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  cooperative apartment loan paid by the borrower and received by any party other than the
  lender.
      (2) "Contract for deed" means an executory contract for the conveyance of real estate,
  the original principal amount of which is less than $300,000. A commitment for a contract
  for deed shall include an executed purchase agreement or earnest money contract wherein
  the seller agrees to finance any part or all of the purchase price by a contract for deed.
      (3) "Conventional loan" means a loan or advance of credit, other than a loan or advance
  of credit made by a credit union or made pursuant to section 334.011, to a noncorporate
  borrower in an original principal amount of less than or equal to the conforming loan limit
 established by the Federal Housing Finance Agency under the Housing and Recovery Act
 of 2018, Public Law 110-289, secured by a mortgage upon real property containing one or
 more residential units or upon which at the time the loan is made it is intended that one or
 more residential units are to be constructed, and which is not insured or guaranteed by the
 secretary of housing and urban development, by the administrator of veterans affairs, or by
 the administrator of the Farmers Home Administration, and which is not made pursuant to
 the authority granted in subdivision 1, clause (3) or (4). The term mortgage does not include
 contracts for deed or installment land contracts.
     (4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
 or advance of credit made by a credit union or made pursuant to section 334.011, to a
 noncorporate borrower in an original principal amount of less than $100,000, secured by a
 security interest on a share or shares of stock or a membership certificate or certificates
 issued to a stockholder or member by a cooperative apartment corporation, which may be
 accompanied by an assignment by way of security of the borrower's interest in the proprietary
 lease or occupancy agreement in property issued by the cooperative apartment corporation
 and which is not insured or guaranteed by the secretary of housing and urban development,
 by the administrator of veterans affairs, or by the administrator of the Farmers Home
 Administration.
     (5) "Cooperative apartment corporation" means a corporation or cooperative organized
 under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
 reason of their ownership of stock or membership certificates in the corporation or
 association, to occupy one or more residential units in a building owned or leased by the
 corporation or association.
     (6) "Forward commitment fee" means a fee or other consideration paid to a lender for
 the purpose of securing a binding forward commitment by or through the lender to make
       Article 2 Sec. 2.  9
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  conventional loans to two or more credit worthy purchasers, including future purchasers,
  of residential units, or a fee or other consideration paid to a lender for the purpose of securing
  a binding forward commitment by or through the lender to make conventional loans to two
  or more credit worthy purchasers, including future purchasers, of units to be created out of
  existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
  for the purpose of securing a binding forward commitment by or through the lender to make
  cooperative apartment loans to two or more credit worthy purchasers, including future
  purchasers, of a share or shares of stock or a membership certificate or certificates in a
  cooperative apartment corporation; provided, that the forward commitment rate of interest
 does not exceed the maximum lawful rate of interest effective as of the date the forward
 commitment is issued by the lender.
     (7) "Borrower's interest rate commitment" means a binding commitment made by a
 lender to a borrower wherein the lender agrees that, if a conventional or cooperative
 apartment loan is made following issuance of and pursuant to the commitment, the
 conventional or cooperative apartment loan shall be made at a rate of interest not in excess
 of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
 to in the commitment is not in excess of the maximum lawful rate of interest effective as
 of the date the commitment is issued by the lender to the borrower.
     (8) "Borrower's loan commitment" means a binding commitment made by a lender to a
 borrower wherein the lender agrees to make a conventional or cooperative apartment loan
 pursuant to the provisions, including the interest rate, of the commitment, provided that the
 commitment rate of interest does not exceed the maximum lawful rate of interest effective
 as of the date the commitment is issued and the commitment when issued and agreed to
 shall constitute a legally binding obligation on the part of the mortgagee or lender to make
 a conventional or cooperative apartment loan within a specified time period in the future at
 a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
 the commitment is issued by the lender to the borrower; provided that a lender who issues
 a borrower's loan commitment pursuant to the provisions of a forward commitment is
 authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
 maximum lawful rate of interest effective as of the date the forward commitment is issued
 by the lender.
     (9) "Finance charge" means the total cost of a conventional or cooperative apartment
 loan including extensions or grant of credit regardless of the characterization of the same
 and includes interest, finders fees, and other charges levied by a lender directly or indirectly
 against the person obtaining the conventional or cooperative apartment loan or against a
Article 2 Sec. 2.  10
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  seller of real property securing a conventional loan or a seller of a share or shares of stock
  or a membership certificate or certificates in a cooperative apartment corporation securing
  a cooperative apartment loan, or any other party to the transaction except any actual closing
  costs and any forward commitment fee. The finance charges plus the actual closing costs
  and any forward commitment fee, charged by a lender shall include all charges made by a
  lender other than the principal of the conventional or cooperative apartment loan. The finance
  charge, with respect to wraparound mortgages, shall be computed based upon the face
  amount of the wraparound mortgage note, which face amount shall consist of the aggregate
  of those funds actually advanced by the wraparound lender and the total outstanding principal
 balances of the prior note or notes which have been made a part of the wraparound mortgage
 note.
     (10) "Lender" means any person making a conventional or cooperative apartment loan,
 or any person arranging financing for a conventional or cooperative apartment loan. The
 term also includes the holder or assignee at any time of a conventional or cooperative
 apartment loan.
     (11) "Loan yield" means the annual rate of return obtained by a lender over the term of
 a conventional or cooperative apartment loan and shall be computed as the annual percentage
 rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
 of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
 for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
 the rate of interest or loan yield shall be based upon the principal balance set forth in the
 wraparound note and mortgage and shall not include any interest differential or yield
 differential between the stated interest rate on the wraparound mortgage and the stated
 interest rate on the one or more prior mortgages included in the stated loan amount on a
 wraparound note and mortgage.
     (12) "Person" means an individual, corporation, business trust, partnership or association
 or any other legal entity.
     (13) "Residential unit" means any structure used principally for residential purposes or
 any portion thereof, and includes a unit in a common interest community, a nonowner
 occupied residence, and any other type of residence regardless of whether the unit is used
 as a principal residence, secondary residence, vacation residence, or residence of some other
 denomination.
Article 2 Sec. 2.  11
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (14) "Vendor" means any person or persons who agree to sell real estate and finance
  any part or all of the purchase price by a contract for deed. The term also includes the holder
  or assignee at any time of the vendor's interest in a contract for deed.
    Sec. 3. Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:
      Subd. 4a. Maximum interest rate. (a) No conventional or cooperative apartment loan
  or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
  lawful interest rate in an amount equal to the Federal National Mortgage Association posted
  yields on 30-year mortgage commitments for delivery within 60 days on standard
  conventional fixed-rate mortgages published in the Wall Street Journal for the last business
 day of the second preceding month average prime offer rate, as defined in Code of Federal
 Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
 recently published by the United States Consumer Financial Protection Bureau on the last
 date the discounted interest rate for the transaction is set before consummation, plus four
 percentage points. If the index is not available, a substitute index may be adopted by a
 commissioner order.
     (b) The maximum lawful interest rate applicable to a cooperative apartment loan or
 contract for deed at the time the loan or contract is made is the maximum lawful interest
 rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
 the provisions of section 334.01, a cooperative apartment loan or contract for deed may
 provide, at the time the loan or contract is made, for the application of specified different
 consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
 the maximum lawful interest rate applicable to the loan or contract at the time the loan or
 contract is made.
     (c) The maximum interest rate that can be charged on a conventional loan or a contract
 for deed, with a duration of ten years or less, for the purchase of real estate described in
 section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
 under paragraph (a) or 15.75 percent per year, whichever is less. This paragraph is effective
 August 1, 1992.
     (d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
 conventional or cooperative apartment loans made pursuant to a borrower's interest rate
 commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
 commitment for conventional or cooperative apartment loans made upon payment of a
 forward commitment fee including a borrower's loan commitment issued pursuant to a
 forward commitment, which commitment provides for consummation within some future
Article 2 Sec. 3.  12
06/05/25  REVISOR        RSI/AD  25-05685  as introduced
  time following the issuance of the commitment may be consummated pursuant to the
  provisions, including the interest rate, of the commitment notwithstanding the fact that the
  maximum lawful rate of interest at the time the contract for deed or conventional or
  cooperative apartment loan is actually executed or made is less than the commitment rate
  of interest, provided the commitment rate of interest does not exceed the maximum lawful
  interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
  existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
  the secretary of housing and urban development, the administrator of veterans affairs, or
  the administrator of the Farmers Home Administration, or (3) a contract for deed by making
 a conventional or cooperative apartment loan is deemed to be a new conventional or
 cooperative apartment loan for purposes of determining the maximum lawful rate of interest
 under this subdivision. The renegotiation of a conventional or cooperative apartment loan
 or a contract for deed is deemed to be a new loan or contract for deed for purposes of
 paragraph (b) and for purposes of determining the maximum lawful rate of interest under
 this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
 is deemed to be issued on the date the commitment is hand delivered by the lender to, or
 mailed to the borrower. A forward commitment is deemed to be issued on the date the
 forward commitment is hand delivered by the lender to, or mailed to the person paying the
 forward commitment fee to the lender, or to any one of them if there should be more than
 one. A commitment for a contract for deed is deemed to be issued on the date the commitment
 is initially executed by the contract for deed vendor or the vendor's authorized agent.
     (e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
 loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
 borrower's loan commitment, or made pursuant to a forward commitment for conventional
 or cooperative apartment loans made upon payment of a forward commitment fee including
 a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
 not in excess of the rate of interest authorized by this subdivision at the time the commitment
 was made continues to be enforceable in accordance with its terms until the indebtedness
 is fully satisfied.
   Sec. 4. Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
     Subd. 8. Conventional loan provisions. (a) A lender making a conventional loan shall
 comply with the following:
Article 2 Sec. 4.  13
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (1) the promissory note and mortgage evidencing a conventional loan shall be printed
  in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
  typewritten numerals, or shall be legibly handwritten.;
      (2) the mortgage evidencing a conventional loan shall contain a provision whereby the
  lender agrees to furnish the borrower with a conformed copy of the promissory note and
  mortgage at the time they are executed or within a reasonable time after recordation of the
  mortgage.; and
      (3) the mortgage evidencing a conventional loan shall contain a provision whereby the
  lender, if it intends to foreclose, agrees to give the borrower written notice of any default
 under the terms or conditions of the promissory note or mortgage, by sending the notice by
 certified: (i) first-class mail to the address of the mortgaged property or such other a different
 address as the borrower may have designated designates in writing to the lender; or (ii)
 email or other electronic communication, if agreed to by the lender and the borrower in
 writing. The lender need not give the borrower the notice required by this paragraph clause
 if the default consists of the borrower selling the mortgaged property without the required
 consent of the lender.
     (b) The mortgage shall further provide that the notice under paragraph (a), clause (3),
 shall contain the following provisions:
     (a) (1) the nature of the default by the borrower;
     (b) (2) the action required to cure the default;
     (c) (3) a date, not less than 30 days from the date the notice is mailed by which the
 default must be cured;
     (d) (4) that failure to cure the default on or before the date specified in the notice may
 result in acceleration of the sums secured by the mortgage and sale of the mortgaged
 premises;
     (e) (5) that the borrower has the right to reinstate the mortgage after acceleration; and
     (f) (6) that the borrower has the right to bring a court action to assert the nonexistence
 of a default or any other defense of the borrower to acceleration and sale.
   Sec. 5. Minnesota Statutes 2024, section 47.77, is amended to read:
     47.77 TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
     (a) No financial institution shall initiate a transfer of a deposit account to another deposit
 account bearing different identification information without sending at least 30 days' prior
Article 2 Sec. 5.  14
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  notice to at least one of the deposit account holders at the last known address on file with
  the financial institution. If the new account is subject to different terms, the financial
  institution must obtain the written consent of at least one of the deposit account holders
  before the new terms become effective.
      (b) No financial institution shall initiate a closure of a deposit account without first
  sending at least one of the deposit account holders a notice of intent to close the deposit
  account. The notice must be sent to the deposit account holder's last known address on file
  with the financial institution at least 30 days before the financial institution closes the deposit
  account;, except that, if the financial institution has reasonable suspicion to believe that
 account is being used in connection with a check-related fraud or other crime or that, funds
 will not be available to pay items drawn on the account, or the deposit account holder has
 engaged in harassment, as defined in section 609.749, subdivision 2, paragraph (c), toward
 financial institution employees or customers, the notice may be sent the same day as the
 account is closed.
     (c) As used in this section, the following terms have the meanings given them. "Deposit
 account" means a contract of deposit of funds between a depositor and a financial institution,
 and includes a checking account, savings account, certificate of deposit share account, and
 other like arrangement. "Financial institution" means any organization authorized to do
 business under state or federal laws relating to financial institutions, including, without
 limitation, banks and trust companies, savings banks, savings associations, industrial loan
 and thrift companies, and credit unions.
   Sec. 6. Minnesota Statutes 2024, section 53B.61, is amended to read:
     53B.61 MAINTENANCE OF PERMISSIBLE INVESTMENTS.
     (a) A licensee must maintain at all times permissible investments that have a market
 value computed in accordance with United States generally accepted accounting principles
 of not less than the aggregate amount of all of the licensee's outstanding money transmission
 obligations.
     (b) Except for permissible investments enumerated in section 53B.62, paragraph (a)
 subdivision 1, clause (1), the commissioner may by administrative rule or order, with respect
 to any licensee, limit the extent to which a specific investment maintained by a licensee
 within a class of permissible investments may be considered a permissible investment, if
 the specific investment represents undue risk to customers not reflected in the market value
 of investments.
Article 2 Sec. 6.  15
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (c) Permissible investments, even if commingled with other assets of the licensee, are
  held in trust for the benefit of the purchasers and holders of the licensee's outstanding money
  transmission obligations in the event of insolvency; the filing of a petition by or against the
  licensee under the United States Bankruptcy Code, United States Code, title 11, sections
  101 to 110, as amended or recodified from time to time, for bankruptcy or reorganization;
  the filing of a petition by or against the licensee for receivership; the commencement of any
  other judicial or administrative proceeding for the licensee's dissolution or reorganization;
  or in the event of an action by a creditor against the licensee who is not a beneficiary of this
  statutory trust. No permissible investments impressed with a trust pursuant to this paragraph
 are subject to attachment, levy of execution, or sequestration by order of any court, except
 for a beneficiary of the statutory trust.
     (d) Upon the establishment of a statutory trust in accordance with paragraph (c), or when
 any funds are drawn on a letter of credit pursuant to section 53B.62, paragraph (a), clause
 (4), the commissioner must notify the applicable regulator of each state in which the licensee
 is licensed to engage in money transmission, if any, of the establishment of the trust or the
 funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed
 pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and
 any other permissible investments held in trust for the benefit of the purchasers and holders
 of the licensee's outstanding money transmission obligations, are deemed held in trust for
 the benefit of the purchasers and holders of the licensee's outstanding money transmission
 obligations on a pro rata and equitable basis in accordance with statutes pursuant to which
 permissible investments are required to be held in Minnesota and other states, as defined
 by a substantially similar statute in the other state. Any statutory trust established under this
 section terminates upon extinguishment of all of the licensee's outstanding money
 transmission obligations.
     (e) The commissioner may by rule or by order allow other types of investments that the
 commissioner determines are of sufficient liquidity and quality to be a permissible
 investment. The commissioner is authorized to participate in efforts with other state regulators
 to determine that other types of investments are of sufficient liquidity and quality to be a
 permissible investment.
Article 2 Sec. 6.  16
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 7. Minnesota Statutes 2024, section 55.07, is amended by adding a subdivision to
  read:
      Subd. 3. Safe deposit lease; automatic renewal. A safe deposit lease may renew
  automatically at the end of the lease's term. A consumer may terminate a safe deposit lease
  at any time in writing or in any other manner described in the lease.
    Sec. 8. Minnesota Statutes 2024, section 58B.02, subdivision 8a, is amended to read:
      Subd. 8a. Lender. "Lender" means an entity engaged in the business of securing, making,
  or extending student loans. Lender does not include, to the extent that state regulation is
  preempted by federal law:
     (1) a bank, savings banks, savings and loan association, or credit union;
     (2) a wholly owned subsidiary of a bank or credit union;
     (3) an operating subsidiary where each owner is wholly owned by the same bank or
 credit union;
     (4) the United States government, through Title IV of the Higher Education Act of 1965,
 as amended, and administered by the United States Department of Education;
     (5) an agency, instrumentality, or political subdivision of Minnesota;
     (6) a regulated lender organized under chapter 56, except that a regulated lender must
 file the annual report required for lenders under section 58B.03, subdivision 11 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. 9. Minnesota Statutes 2024, section 82.63, subdivision 2, is amended to read:
     Subd. 2. Additional broker's license. An individual who holds a broker's license in the
 broker's own name or for or on behalf of a business entity must be issued an additional
 broker's license only upon demonstrating:
     (1) that the additional license is necessary in order to serve a legitimate business purpose;
     (2) that the broker will be capable of supervising all salespersons over whom the broker
 will have supervisory responsibility or, in the alternative, that the broker will have no
 supervisory responsibilities under the additional license; and
     (3) that the broker:
Article 2 Sec. 9.  17
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (i) has at least 51 20 percent ownership interest in each business entity for or on whose
  behalf the broker holds or will hold a broker's license; or
      (ii) is an elected or appointed officer, signing partner, or managing member of both the
  business entity for which or on whose behalf the broker already holds a license, and an
  affiliated business entity for which or on whose behalf the broker is applying for an additional
  license.
      For the purpose of this section and sections 82.58, subdivisions 1 to 4; 82.62, subdivisions
  1 to 4; 82.65; and 82.82, subdivision 2, "affiliated business entity" means a business entity
  that is majority-owned by has shared ownership by one or more of the same persons as the
 business entity for which or on whose behalf the broker is already licensed to act.
     For the purposes of this section and sections 82.58, subdivisions 1 to 4; 82.62,
 subdivisions 1 to 4; 82.65; and 82.82, subdivision 2, a legitimate business purpose includes
 engaging in a different and specialized area of real estate or maintaining an existing business
 name.
   Sec. 10. Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:
     Subd. 2. Contracts of $100,000 or more. Notwithstanding any law to the contrary,
 except as stated in section 58.137, and with respect to contracts a conventional loan or
 contract for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
 interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
 sale, or advance made under a written contract, signed by the debtor, for the extension of
 credit to the debtor in the amount of $100,000 or more, or any written extension and other
 written modification of the written contract. The written contract, written extension, and
 written modification are exempt from the other provisions of this chapter.
   Sec. 11. CERTAIN COMPLIANCE OPTIONAL.
     A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
 with respect to conventional loan mortgage documents dated between August 1, 2024, and
 July 31, 2025.
     EFFECTIVE DATE. This section is effective retroactively from July 31, 2024.
Article 2 Sec. 11.  18
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
ARTICLE 3
INSURANCE
    Section 1. Minnesota Statutes 2024, section 60A.201, subdivision 2, is amended to read:
      Subd. 2. Availability of other coverage; presumption. There shall be a rebuttable
  presumption that the following coverages are available from a licensed insurer:
      (a) (1) all mandatory automobile insurance coverages required by chapter 65B;
      (b) (2) private passenger automobile physical damage coverage;
      (c) (3) homeowners and property insurance on owner-occupied dwellings whose value
  is less than $500,000. This figure shall be changed annually by the commissioner by the
 same percentage as the Consumer Price Index for the Minneapolis-St. Paul Metropolitan
 Area is changed;
     (d) (4) any coverage readily available from three or more licensed insurers unless the
 licensed insurers quote a premium and terms not competitive with a premium and terms
 quoted by an eligible surplus lines insurer; and
     (e) (5) workers' compensation insurance, except excess workers' compensation insurance
 which is not available from the Workers' Compensation Reinsurance Association.
   Sec. 2. Minnesota Statutes 2024, section 60A.201, is amended by adding a subdivision to
 read:
     Subd. 7. FAIR plan coverage; notice. If the insurance placed by the surplus lines broker
 with a nonadmitted insurer is homeowners or property insurance on an owner-occupied
 dwelling, the broker must print, type, or stamp in not less than ten-point type on the face of
 the policy the following notice: "YOU MAY BE ELIGIBLE FOR COVERAGE THROUGH
 THE MINNESOTA FAIR PLAN, WHICH MAKES AVAILABLE PROPERTY AND
 LIABILITY COVERAGE, AS DEFINED BY THE MINNESOTA FAIR PLAN ACT, TO
 QUALIFIED APPLICANTS WHO HAVE BEEN UNABLE TO SECURE PROPERTY
 AND LIABILITY INSURANCE THROUGH THE NORMAL INSURANCE MARKETS."
 The notice under this subdivision must not be covered or concealed in any manner, and is
 in addition to the notice required under section 60A.207 or 60A.209.
   Sec. 3. Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:
     Subdivision 1. Applicability. No health carrier, as defined in section 62A.011, shall
 offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a
Article 3 Sec. 3.  19
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  Minnesota resident except in compliance with this section. This section does not apply to
  the Comprehensive Health Association established in section 62E.10.
    Sec. 4. Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:
      Subd. 2. Guaranteed renewal. No individual health plan may be offered, sold, issued,
  or renewed to a Minnesota resident unless the health plan provides that the plan is guaranteed
  renewable at a premium rate that does not take into account the claims experience or any
  change in the health status of any covered person that occurred after the initial issuance of
  the health plan to the person. The premium rate upon renewal must also otherwise comply
  with this section. A health carrier must not refuse is prohibited from refusing to renew an
 a Minnesota resident's individual health plan, except for nonpayment of premiums, fraud,
 or misrepresentation. unless:
     (1) the enrollee has failed to pay premiums in accordance with the health plan's terms,
 including any timeliness requirements;
     (2) the enrollee has performed an act or practice that constitutes fraud or made an
 intentional misrepresentation of material fact under the health plan's terms;
     (3) the enrollee no longer lives in the area where the issuer is authorized to operate;
     (4) a health carrier discontinues an individual health plan under subdivision 2a; or
     (5) a health carrier discontinues issuing new individual health plans and refuses to renew
 all of the health carrier's existing individual health plans issued in Minnesota as provided
 under subdivision 8.
   Sec. 5. Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
 read:
     Subd. 2a. Discontinuing individual health plan. (a) In order to discontinue a particular
 type of individual health plan in Minnesota for purposes of subdivision 2, clause (4), a health
 carrier must:
     (1) provide written notice to the commissioner that approves the individual health plan's
 policy forms and filings, in a form and manner approved by the commissioner, regarding
 the health carrier's intent to discontinue a particular type of individual health plan in
 Minnesota. The notice must be provided no later than May 1 of the year before the date the
 individual health plan intends to discontinue the particular type of individual health plan;
Article 3 Sec. 5.  20
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) provide written notice to each individual enrolled in the individual health plan no
  later than 90 days before the date the coverage is discontinued;
      (3) offer to each individual covered by the individual health plan that the health carrier
  intends to discontinue the option to purchase on a guaranteed issue basis any other individual
  health plan currently offered by the health carrier for individuals in the individual market;
  and
      (4) act uniformly without regard to any health status factor of a covered individual or a
  dependent of a covered individual who may become eligible for coverage.
      (b) Subject to paragraph (d), the commissioner may disapprove a health carrier
 discontinuing a particular type of individual health plan within 60 days after receiving notice
 under paragraph (a) if the commissioner determines discontinuing the plan is not in Minnesota
 policyholders' best interest. When making the determination under this paragraph, the
 commissioner may consider the plan's enrollment size, the availability of comparable
 individual health plan options offered by the health carrier in Minnesota, or any other factor
 the commissioner deems relevant.
     (c) A health carrier may appeal the commissioner's determination made under paragraph
 (b) to disapprove the health carrier's plan to discontinue a particular type of individual health
 plan in Minnesota. An appeal under this paragraph is subject to the contested case procedures
 under chapter 14 and must be made within 30 days of the date the commissioner makes a
 written determination under paragraph (b).
     (d) A health carrier may discontinue an individual health plan without commissioner
 approval if the individual health plan is not a catastrophic or platinum-level health plan, as
 defined in United States Code, title 42, section 18022, and the plan:
     (1) has fewer than 25 enrollees; or
     (2) is a grandfathered plan, as defined in section 62A.011, subdivision 1b.
   Sec. 6. Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:
     Subd. 2. Coverage cancellation; nonrenewal. No health maintenance organization may
 cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
 for health care coverage; (2) termination of the health care plan subject to section 62A.65,
 subdivisions 2 and 2a; (3) termination of the group plan; (4) enrollee moving out of the area
 served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
 moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
 62D.104; (6) failure to make co-payments required by pay premiums as provided by the
Article 3 Sec. 6.  21
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  terms of the health care plan, including timeliness requirements; (7) fraud or
  misrepresentation by the enrollee with respect to eligibility for coverage or any other material
  fact; or (8) other reasons established in rules promulgated by the commissioner of health.
    Sec. 7. Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:
      Subd. 2a. Cancellation or nonrenewal notice. Enrollees shall be given 30 days' notice
  of any cancellation or nonrenewal, except that: (1) enrollees in a plan terminated under
  section 62A.65, subdivisions 2, clause (4), and 2a, must receive the 90 days' notice required
  under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2) enrollees who are
  eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive
 90 days' notice as provided under section 62D.121, subdivision 5.
   Sec. 8. Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:
     Subdivision 1. Replacement coverage. When membership of an enrollee who has
 individual health coverage is terminated by the health maintenance organization for a reason
 other than (a) failure to pay the charge for health care coverage; (b) failure to make
 co-payments required by pay premiums as provided by the terms of the health care plan,
 including timeliness requirements; (c) enrollee moving out of the area served; or (d) a
 materially false statement or misrepresentation by the enrollee in the application for
 membership, the health maintenance organization must offer or arrange to offer replacement
 coverage, without evidence of insurability, without preexisting condition exclusions, and
 without interruption of coverage.
   Sec. 9. Minnesota Statutes 2024, section 62J.26, subdivision 3, is amended to read:
     Subd. 3. Requirements for evaluation. (a) No later than August 1 of the year preceding
 the legislative session in which a an incumbent legislator is planning on introducing a bill
 containing a mandated health benefit proposal, or is planning on offering an amendment to
 a bill that adds a mandated health benefit, the prospective author must notify the chair of
 one of the standing legislative committees that have jurisdiction over the subject matter of
 the proposal. No later than 15 days after notification is received, the chair must notify the
 commissioner that an evaluation of a mandated health benefit proposal is required to be
 completed in accordance with this section in order to inform the legislature before any action
 is taken on the proposal by either house of the legislature.
     (b) The commissioner must conduct an evaluation described in subdivision 2 of each
 mandated health benefit proposal for which an evaluation is required under paragraph (a).
Article 3 Sec. 9.  22
06/05/25  REVISOR        RSI/AD  25-05685  as introduced
      (c) If the evaluation of multiple proposals are required, the commissioner must consult
  with the chairs of the standing legislative committees having jurisdiction over the subject
  matter of the mandated health benefit proposals to prioritize the evaluations and establish
  a reporting date for each proposal to be evaluated.
      (d) The commissioner must maintain the ability to conduct an evaluation for one mandated
  health benefit proposal per even-numbered year that is introduced or offered by a legislator
  who was not seated by the deadline for notification under paragraph (a). The commissioner
  must conduct an evaluation of the mandated health benefit proposal offered or introduced
  pursuant to this paragraph in an expedited manner, taking into consideration the complexity
 of the proposal.
   Sec. 10. Minnesota Statutes 2024, section 62J.26, is amended by adding a subdivision to
 read:
     Subd. 6. Adoption of forms. (a) No later than July 1, 2026, the commissioner of
 commerce must adopt forms for:
     (1) an incumbent legislator to notify the chair of the mandated health benefit proposal
 under subdivision 3, paragraph (a); and
     (2) the chair to notify the commissioner of the mandated health benefit proposal under
 subdivision 3, paragraph (a).
     (b) The forms adopted under this subdivision must include all information needed from
 the legislator introducing or offering the mandated health benefit proposal for the
 commissioner to conduct the required evaluation.
   Sec. 11. Minnesota Statutes 2024, section 62Q.73, subdivision 4, is amended to read:
     Subd. 4. Contract. Pursuant to a request for proposal, the commissioner of administration,
 in consultation with the commissioners of health and commerce, shall must contract with
 at least three organizations more than one organization or business entities entity to provide
 independent external reviews of all adverse determinations submitted for external review.
 The contract shall must ensure that the fees for services rendered in connection with the
 reviews are reasonable.
Article 3 Sec. 11.  23
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 12. Minnesota Statutes 2024, section 65B.02, subdivision 7, is amended to read:
      Subd. 7. Participation ratio. "Participation ratio" means the ratio of the member's
  Minnesota premiums, or other measure of business written approved by the commissioner,
  in relation to the comparable statewide totals for all members.
      (1) For private passenger nonfleet automobile insurance coverages the participation ratio
  shall be based on voluntary car years written in this state for the calendar year ending
  December 31 of the second prior year, as reported by the statistical agent of each member
  as private passenger nonfleet exposures.
      (2) For insurance coverages on all other automobiles, including insurance for fleets,
 commercial vehicles, public vehicles and garages, the ratio shall be based on the total
 Minnesota gross, direct automobile insurance premiums written, including both policy and
 membership fees less return premiums and premiums on policies not taken, without including
 reinsurance assumed and without deducting reinsurance ceded, and less the amount of such
 premiums reported as received for insurance on private passenger nonfleet vehicles, for the
 calendar year ending December 31 of the second prior year.
     (3) For the purpose of determining each member's responsibility for expenses and
 assessments to operate the facility, the ratio shall be based on each member's total Minnesota
 car years and gross, direct premiums written, including both policy and membership fees
 less return premiums and premiums on policies not taken, without including reinsurance
 assumed and without deducting reinsurance ceded, for the calendar year ending December
 31 of the second prior year, provided, however, that the preliminary determination of each
 member's responsibility for expenses and assessments may use the calendar year ending
 December 31 of the third prior year.
   Sec. 13. Minnesota Statutes 2024, section 65B.05, is amended to read:
     65B.05 POWER OF FACILITY, GOVERNING COMMITTEE.
     (a) The facility is authorized to: (1) issue or cause to be issued insurance policies in the
 name of the Minnesota automobile insurance plan to applicants for the types of insurance
 available under the plan, subject to limits specified in the plan of operation; (2) underwrite
 the insurance and adjust and pay losses with respect to the plan; and (3) retain, hire, or
 appoint an individual or company to perform a function under clause (1) or (2).
     (b) The governing committee shall have the power to direct the operation of the facility
 in all pursuits consistent with the purposes and terms of sections 65B.01 to 65B.12, including
 but not limited to the following:
Article 3 Sec. 13.  24
06/05/25  REVISOR        RSI/AD  25-05685  as introduced
      (1) To sue and be suing and being sued in the name of the facility and to assess each
  member in accord with its participation ratio to pay any judgment against the facility as an
  entity, provided, however, that no judgment against the facility shall create any liabilities
  in one or more members disproportionate to their participation ratio or an individual
  representing members on the governing committee.;
      (2) To delegate delegating ministerial duties, to hire hiring a manager, and to contract
  contracting for goods and services from others.;
      (3) To assess assessing members on the basis of participation ratios to cover anticipated
  costs of operation and administration of the facility.; and
     (4) To impose imposing limitations on cancellation or nonrenewal by members of
 insureds covered pursuant to placement through the facility in addition to the limitations
 imposed by chapter 72A and sections 65B.1311 to 65B.21.
   Sec. 14. Minnesota Statutes 2024, section 65B.06, subdivision 1, is amended to read:
     Subdivision 1. Distribution of private passenger, nonfleet auto risks. With respect
 to private passenger, nonfleet automobiles, the facility shall provide for the equitable
 distribution of qualified applicants to members to share premium, losses, costs, and expenses
 in accordance with the participation ratio or among these insurance companies as selected
 under the provisions of the plan of operation.
   Sec. 15. Minnesota Statutes 2024, section 65B.06, subdivision 2, is amended to read:
     Subd. 2. Private passenger; nonfleet auto coverage. With respect to private passenger,
 nonfleet automobiles, the facility shall provide for the issuance of policies of automobile
 insurance by members with coverage as follows:
     (1) bodily injury liability and property damage liability coverage in the minimum amounts
 specified in section 65B.49, subdivision 3;
     (2) uninsured and underinsured motorist coverages as required by section 65B.49,
 subdivisions 3a and 4a;
     (3) a reasonable selection of higher limits of liability coverage up to $50,000 because
 of bodily injury to or death of one person in any one accident and, subject to such limit for
 one person, up to $100,000 because of bodily injury to or death of two or more persons in
 any one accident, and up to $25,000 because of injury to or destruction of property of others
 in any one accident, or higher limits of liability coverage as recommended by the governing
 committee and approved by the commissioner;
Article 3 Sec. 15.  25
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (4) basic economic loss benefits, as required by section 65B.44, and other optional
  coverages as recommended by the governing committee and approved by the commissioner;
  and
      (5) automobile physical damage coverage, including coverage of loss by collision, subject
  to deductible options.
    Sec. 16. Minnesota Statutes 2024, section 65B.06, subdivision 3, is amended to read:
      Subd. 3. Other auto coverage. With respect to all automobiles not included in
  subdivisions 1 and 2, the facility shall provide:
      (1) the minimum limits of coverage required by section 65B.49, subdivisions 2, 3, 3a,
 and 4a, or higher limits of liability coverage as recommended by the governing committee
 and approved by the commissioner;
     (2) for the equitable distribution of qualified applicants sharing of premium, losses,
 costs, and expenses for this coverage among the members in accord accordance with the
 applicable participation ratio, or among these insurance companies as selected under the
 provisions of the plan of operation; and
     (3) for a school district or contractor transporting school children under contract with a
 school district, that amount of automobile liability insurance coverage, not to exceed
 $1,000,000, required by the school district by resolution or contract, or that portion of such
 $1,000,000 of coverage for which the school district or contractor applies and for which it
 is eligible under section 65B.10.
   Sec. 17. Minnesota Statutes 2024, section 65B.10, subdivision 2, is amended to read:
     Subd. 2. Termination of eligibility. Eligibility for placement through the facility will
 terminate if an insured is offered equivalent coverage in the voluntary market at a rate lower
 than the facility rate. If the member that is required to provide coverage by the facility makes
 such an offer after giving 30 days' advance written notice to the agent of record before
 making the offer, the member shall have no further obligation to the agent of record.
   Sec. 18. Minnesota Statutes 2024, section 72A.20, is amended by adding a subdivision to
 read:
     Subd. 42. Availability of current policy. After an original policy of automobile insurance
 under section 65B.14, subdivision 2, or homeowner's insurance under section 65A.27,
 subdivision 4, has been issued, an insurer must deliver a copy of the current policy to the
Article 3 Sec. 18.  26
06/05/25  REVISOR        RSI/AD  25-05685  as introduced
  first named insured within 21 days of the date a request for the current policy is received.
  The copy may be delivered in paper form, electronically, or via a website link. An insurer
  is required to provide a current policy in response to a request under this subdivision once
  per policy period.
    Sec. 19. APPLICATION OF MINNESOTA STATUTES, SECTION 65A.3025.
      Minnesota Statutes, section 65A.3025, applies to policies issued or renewed on or after
  August 1, 2024. Minnesota Statutes, section 65A.3025, does not apply to policies issued or
  renewed prior to August 1, 2024.
      EFFECTIVE DATE. This section is effective retroactively from August 1, 2024.
   Sec. 20. TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY
 INSURANCE.
     Subdivision 1. Establishment. A task force is established to evaluate issues and provide
 recommendations relating to insurance affordability of single-family housing, common
 interest communities, and multifamily rental housing and for preventing disruptions or loss
 to the development, preservation, and long-term sustainability of Minnesota's housing
 infrastructure.
     Subd. 2. Membership. (a) The task force consists of the following:
     (1) one member appointed by the commissioner of commerce;
     (2) one member appointed jointly by the speaker of the house and the speaker emerita
 of the house;
     (3) one member appointed jointly by the senate majority leader and the senate minority
 leader;
     (4) one member appointed by the Minnesota Consortium of Community Developers;
     (5) two members appointed by the Insurance Federation of Minnesota, including one
 member with expertise in homeowners insurance and one member with expertise in
 commercial insurance;
     (6) one member appointed by Big I Minnesota;
     (7) one member appointed by the Minnesota Association of Farm Mutual Insurance
 Companies;
     (8) one member appointed by the Community Associations Institute;
Article 3 Sec. 20.  27
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (9) one member appointed by the Contractors Association of Minnesota;
      (10) one member appointed by the Minnesota Multi Housing Association;
      (11) one member appointed by the Housing Justice Center; and
      (12) one member appointed by Ceres with expertise in climate risk mitigation and
  insurance markets.
      (b) The appointing authorities must make the appointments by August 15, 2025.
      Subd. 3. Duties. (a) The task force must identify recommendations to strengthen and
  stabilize the homeowners and commercial property insurance industry.
      (b) The task force must consult with the commissioner of the Housing Finance Agency,
 the commissioner of employment and economic development, other relevant state and local
 agencies, and key stakeholders in the insurance and housing industries.
     (c) The task force must review:
     (1) risk mitigation and property resilience to natural hazards, and the effect on insurance
 costs;
     (2) the effect of liability laws on insurance costs and whether tort reform could reduce
 costs;
     (3) minimum notice for coverage changes, including enforcement and oversight;
     (4) public reporting of aggregated data relating to insurance plan costs and coverage;
     (5) the reinsurance market for homeowners and commercial property insurance;
     (6) the current state-supported insurance program and the potential to expand the program
 to include a catastrophic reinsurance fund and a self-insured pool;
     (7) factors that increase claim costs, including but not limited to post-loss contractors,
 fraudulent claims, climate, inflation, and discontinued building materials;
     (8) regulatory factors that increase insurance costs or decrease access to insurance
 products; and
     (9) other areas that would strengthen and stabilize the homeowners and commercial
 property insurance industry.
     Subd. 4. Administration. The Legislative Coordinating Commission must provide
 administrative support to the task force. Upon request of the task force, the commissioners
Article 3 Sec. 20.  28
06/05/25  REVISOR       RSI/AD  25-05685  as introduced
  of commerce, the Housing Finance Agency, and employment and economic development
  must provide technical support and expertise.
      Subd. 5. Meetings. (a) The Legislative Coordinating Commission must ensure the first
  meeting of the task force convenes no later than September 15, 2025, and must provide
  accessible physical or virtual meeting space as necessary for the task force to conduct work.
      (b) At the first meeting, the task force must elect a chair or cochairs from the members
  appointed by the house and senate by a majority vote of those members present and may
  elect a vice-chair as necessary.
      (c) The task force must establish a schedule for meetings and must meet as necessary
 to accomplish the duties under subdivision 3.
     (d) The task force is subject to Minnesota Statutes, chapter 13D.
     Subd. 6. Report required. (a) The task force must submit a report to the commissioners
 of commerce, the Housing Finance Agency, and employment and economic development
 and the chairs and ranking minority members of the legislative committees having jurisdiction
 over the agencies listed in this paragraph by February 15, 2026.
     (b) The report must:
     (1) summarize the activities of the task force;
     (2) provide findings and recommendations adopted by the task force;
     (3) make recommendations related to tort reform that could reduce insurance costs;
     (4) include any draft legislation required to implement recommendations; and
     (5) include other information the task force believes is necessary to report.
     Subd. 7. Expiration. The task force expires upon submission of the report required
 under subdivision 6.
     EFFECTIVE DATE. This section is effective the day following final enactment.
ARTICLE 4
INSURANCE HOLDING COMPANY SYSTEMS
   Section 1. Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision
 to read:
     Subd. 5. Other violations. If the commissioner believes a person has committed a
 violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
Article 4 Section 1.  29
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  insurer by affiliates or by the insurance holding company system, the violation may serve
  as an independent basis for disapproving dividends or distributions and for placing the
  insurer under an order of supervision under chapter 60B.
    Sec. 2. Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:
      Subd. 4. Control. The term "control," including the terms "controlling," "controlled
  by," and "under common control with," means the possession, direct or indirect, of the
  power to direct or cause the direction of the management and policies of a person, whether
  through the ownership of voting securities, by contract other than a commercial contract
  for goods or nonmanagement services, or otherwise, unless the power is the result of an
 official position with, or corporate office held by, or court appointment of, the person.
 Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
 the power to vote, or holds proxies representing, ten percent or more of the voting securities
 of any other person. This presumption may be rebutted by a showing made in the manner
 provided by section 60D.19, subdivision 11, that control does not exist in fact. The
 commissioner may determine, after furnishing all persons in interest notice and opportunity
 to be heard and making specific findings of fact to support such the determination, that
 control exists in fact, notwithstanding the absence of a presumption to that effect.
   Sec. 3. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
 read:
     Subd. 4c. Group capital calculation instructions. "Group capital calculation
 instructions" means the group capital calculation instructions adopted by the NAIC and as
 amended by the NAIC from time to time in accordance with procedures adopted by the
 NAIC.
   Sec. 4. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
 read:
     Subd. 6b. NAIC. "NAIC" means the National Association of Insurance Commissioners.
   Sec. 5. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
 read:
     Subd. 6c. NAIC liquidity stress test framework. "NAIC liquidity stress test framework"
 means an NAIC publication which includes a history of the NAIC's development of
 regulatory liquidity stress testing, the scope criteria applicable for a specific data year, and
Article 4 Sec. 5.  30
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  the liquidity stress test instructions and reporting templates for a specific data year, scope
  criteria, instructions, and reporting template being adopted by the NAIC, and as amended
  by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
    Sec. 6. Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:
      Subd. 7. Person. A "person" is an individual, a corporation, a limited liability company,
  a partnership, an association, a joint stock company, a trust, an unincorporated organization,
  any similar entity or any combination of the foregoing acting in concert, but does not include
  any joint venture partnership exclusively engaged in owning, managing, leasing, or
  developing real or tangible personal property.
   Sec. 7. Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
 read:
     Subd. 7a. Scope criteria. "Scope criteria," as detailed in the NAIC liquidity stress test
 framework, means the designated exposure bases along with minimum magnitudes of the
 designated exposure bases for the specified data year that are used to establish a preliminary
 list of insurers considered scoped into the NAIC liquidity stress test framework for that data
 year.
   Sec. 8. Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:
     Subd. 2. Additional investment authority. In addition to investments in common stock,
 preferred stock, debt obligations, and other securities otherwise permitted under this chapter,
 a domestic insurer may also:
     (a) Invest, in common stock, preferred stock, debt obligations, and other securities of
 one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
 assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
 investments, the insurer's surplus as regards policyholders will be is reasonable in relation
 to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
 amount of these investments, investments in domestic or foreign insurance subsidiaries and
 health maintenance organizations must be excluded, and there must be included:
     (1) total net money or other consideration expended and obligations assumed in the
 acquisition or formation of a subsidiary, including all organizational expenses and
 contributions to capital and surplus of the subsidiary whether or not represented by the
 purchase of capital stock or issuance of other securities; and
Article 4 Sec. 8.  31
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) all amounts expended in acquiring additional common stock, preferred stock, debt
  obligations, and other securities; and all contributions to the capital or surplus, of a subsidiary
  subsequent to its acquisition or formation.
      (b) Invest any amount in common stock, preferred stock, debt obligations, and other
  securities of one or more subsidiaries engaged or organized to engage exclusively in the
  ownership and management of assets authorized as investments for the insurer provided
  that the subsidiary agrees to limit its investments in any asset so that the investments will
  do not cause the amount of the total investment of the insurer to exceed any of the investment
  limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
 purpose of this paragraph, "the total investment of the insurer" includes:
     (1) any direct investment by the insurer in an asset; and
     (2) the insurer's proportionate share of any investment in an asset by any subsidiary of
 the insurer, which must be calculated by multiplying the amount of the subsidiary's
 investment by the percentage of the ownership of the subsidiary.
     (c) With the approval of the commissioner, invest any greater amount in common stock,
 preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
 investment the insurer's surplus as regards policyholders will be is reasonable in relation to
 the insurer's outstanding liabilities and adequate to its financial needs.
   Sec. 9. Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:
     Subdivision 1. Filing requirements. (a) No person other than the issuer shall: (1) make
 a tender offer for or a request or invitation for tenders of, or enter into any agreement to
 exchange securities or for, seek to acquire, or acquire, in the open market or otherwise, any
 voting security of a domestic insurer if, after the consummation thereof, the person would,
 directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
 of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
 of a domestic insurer or any person controlling a domestic insurer unless, at the time the
 offer, request, or invitation is made or the agreement is entered into, or before the acquisition
 of the securities if no offer or agreement is involved, the person has filed with the
 commissioner and has sent to the insurer, a statement containing the information required
 by this section and the offer, request, invitation, agreement, or acquisition has been approved
 by the commissioner in the manner prescribed in this section.
     (b) For purposes of this section, a controlling person of a domestic insurer seeking to
 divest its controlling interest in the domestic insurer, in any manner, shall file with the
Article 4 Sec. 9.  32
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
  least 30 days before the cessation of control. The commissioner shall determine those
  instances in which the party or parties seeking to divest or to acquire a controlling interest
  in an insurer will be required to file for and obtain approval of the transaction.
      (c) With respect to a transaction subject to this section, the acquiring person must also
  file a preacquisition notification with the commissioner, which must contain the information
  set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
  may be subject to penalties specified in section 60D.18, subdivision 5.
      (d) For purposes of this section, a domestic insurer includes a person controlling a
 domestic insurer unless the person, as determined by the commissioner, is either directly
 or through its affiliates primarily engaged in business other than the business of insurance.
 For the purposes of this section, "person" does not include any securities broker holding,
 in the usual and customary brokers broker's function, less than 20 percent of the voting
 securities of an insurance company or of any person that controls an insurance company.
     (e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
 remain confidential until the transaction is approved by the commissioner, except that all
 attachments filed with the statement remain confidential after the approval unless the
 commissioner, in the commissioner's discretion, determines that confidential treatment of
 any of this information will interfere with enforcement of this section.
   Sec. 10. Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:
     Subd. 3. Preacquisition notification; waiting period. (a) An acquisition covered by
 subdivision 2 may be subject to an order pursuant to subdivision 4 5 unless the acquiring
 person files a preacquisition notification and the waiting period has expired. The acquired
 person may file a preacquisition notification. The commissioner shall give confidential
 treatment to information submitted under this section in the same manner as provided in
 section 60D.22.
     (b) The preacquisition notification must be in the form and contain the information as
 prescribed by the National Association of Insurance Commissioners relating to those markets
 that, under subdivision 2, paragraph (b), clause (5) (4), cause the acquisition not to be
 exempted from the provisions of this section. The commissioner may require the additional
 material and information as the commissioner deems necessary to determine whether the
 proposed acquisition, if consummated, would violate the competitive standard of subdivision
 4. The required information may include an opinion of an economist as to the competitive
Article 4 Sec. 10.  33
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  impact of the acquisition in this state accompanied by a summary of the education and
  experience of the person indicating that person's ability to render an informed opinion.
      (c) The waiting period required begins on the date of receipt of the commissioner of a
  preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
  or termination of the waiting period by the commissioner. Before the end of the waiting
  period, the commissioner on a onetime basis may require the submission of additional
  needed information relevant to the proposed acquisition, in which event the waiting period
  shall end on the earlier of the 30th day after receipt of the additional information by the
  commissioner or termination of the waiting period by the commissioner.
   Sec. 11. Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:
     Subd. 4. Materiality. No information need be disclosed on the registration statement
 filed pursuant to subdivision 2 if the information is not material for the purposes of this
 section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
 exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
 one percent or less of an insurer's admitted assets as of the 31st day of December next
 preceding shall not be deemed material for purposes of this section. The definition of
 materiality provided in this subdivision does not apply for purposes of the group capital
 calculation or the NAIC liquidity stress test framework.
   Sec. 12. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
 read:
     Subd. 11b. Group capital calculation. (a) Except as otherwise provided in this paragraph,
 the ultimate controlling person of every insurer subject to registration must concurrently
 file with the registration an annual group capital calculation as directed by the commissioner.
 The report must be completed in accordance with the NAIC group capital calculation
 instructions, which may permit the commissioner to allow a controlling person that is not
 the ultimate controlling person to file the group capital calculation. The report must be filed
 with the commissioner, as determined by the commissioner in accordance with the procedures
 within the Financial Analysis Handbook adopted by the NAIC. The following insurance
 holding company systems are exempt from filing the group capital calculation:
     (1) an insurance holding company system that (i) has only one insurer within the insurance
 holding company system's holding company structure, (ii) only writes business and is only
 licensed in the insurance holding company system's domestic state, and (iii) assumes no
 business from any other insurer;
Article 4 Sec. 12.  34
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) an insurance holding company system that is required to perform a group capital
  calculation specified by the United States Federal Reserve Board. The commissioner must
  request the calculation from the Federal Reserve Board under the terms of information
  sharing agreements in effect. If the Federal Reserve Board is unable to share the calculation
  with the commissioner, the insurance holding company system is not exempt from the group
  capital calculation filing;
      (3) an insurance holding company system whose non-United States groupwide supervisor
  is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
  that recognizes the United States state regulatory approach to group supervision and group
 capital; or
     (4) an insurance holding company system:
     (i) that provides information to the commissioner that meets the requirements for
 accreditation under the NAIC financial standards and accreditation program, either directly
 or indirectly through the groupwide supervisor, that has determined the information is
 satisfactory to allow the commissioner to comply with the NAIC group supervision approach,
 as detailed in the NAIC Financial Analysis Handbook; and
     (ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
 recognizes and accepts, as specified by the commissioner by rule, the group capital
 calculation as the worldwide group capital assessment for United States insurance groups
 that operate in that jurisdiction.
     (b) Notwithstanding paragraph (a), clauses (3) and (4), a commissioner must require the
 group capital calculation for the United States operations of any non-United States based
 insurance holding company system where, after any necessary consultation with other
 supervisors or officials, requiring the group capital calculation is deemed appropriate by
 the commissioner for prudential oversight and solvency monitoring purposes or for ensuring
 the competitiveness of the insurance marketplace.
     (c) Notwithstanding the exemptions from filing the group capital calculation under
 paragraph (a), the commissioner may exempt the ultimate controlling person from filing
 the annual group capital calculation or accept a limited group capital filing or report in
 accordance with criteria specified by the commissioner by rule.
     (d) If the commissioner determines that an insurance holding company system no longer
 meets one or more of the requirements for an exemption from filing the group capital
 calculation under this subdivision, the insurance holding company system must file the
Article 4 Sec. 12.  35
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  group capital calculation at the next annual filing date unless given an extension by the
  commissioner based on reasonable grounds shown.
    Sec. 13. Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
  read:
      Subd. 11c. Liquidity stress test. (a) The ultimate controlling person of every insurer
  subject to registration and also scoped into the NAIC liquidity stress test framework must
  file the results of a specific year's liquidity stress test. The filing must be made to the
  commissioner, as determined by the procedures within the Financial Analysis Handbook
  adopted by the NAIC.
     (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
 specific data year. The scope criteria must be reviewed at least annually by the NAIC
 Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
 change made to the NAIC liquidity stress test framework or to the data year for which the
 scope criteria must be measured is effective January 1 of the year following the calendar
 year in which the change is adopted. An insurer meeting at least one threshold of the scope
 criteria is scoped into the NAIC liquidity stress test framework for the specified data year
 unless the commissioner, in consultation with the NAIC Financial Stability Task Force or
 the NAIC Financial Stability Task Force's successor, determines the insurer should not be
 scoped into the framework for that data year. An insurer that does not trigger at least one
 threshold of the scope criteria is scoped out of the NAIC liquidity stress test framework for
 the specified data year unless the commissioner, in consultation with the NAIC Financial
 Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
 the insurer should be scoped into the framework for the specified data year.
     (c) The commissioner and other state insurance commissioners must avoid scoping
 insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The
 commissioner, in consultation with the NAIC Financial Stability Task Force or the NAIC
 Financial Stability Task Force's successor, must assess irregular scope status as part of an
 insurer's determination.
     (d) The performance of and filing of the results from a specific year's liquidity stress
 test must comply with (1) the NAIC liquidity stress test framework's instructions and
 reporting templates for the specific year, and (2) any commissioner determinations, in
 consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
 Task Force's successor, provided within the framework.
Article 4 Sec. 13.  36
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 14. [60D.195] GROUP CAPITAL CALCULATION.
      Subdivision 1. Annual group capital calculation; exemption permitted. The
  commissioner may exempt the ultimate controlling person from filing the annual group
  capital calculation if the commissioner makes a determination that the insurance holding
  company system meets the following criteria:
      (1) has annual direct written and unaffiliated assumed premium, including international
  direct and assumed premium but excluding premiums reinsured with the Federal Crop
  Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
      (2) has no insurers within the insurance holding company's structure that are domiciled
 outside of the United States or a United States territory;
     (3) has no banking, depository, or other financial entity that is subject to an identified
 regulatory capital framework within the insurance holding company's structure;
     (4) attests that no material changes in the transactions between insurers and noninsurers
 in the group have occurred since the last annual group capital filing; and
     (5) the noninsurers within the holding company system do not pose a material financial
 risk to the insurer's ability to honor policyholder obligations.
     Subd. 2. Limited group capital filing. The commissioner may accept a limited group
 capital filing in lieu of the group capital calculation if:
     (1) the insurance holding company system has annual direct written and unaffiliated
 assumed premium, including international direct and assumed premium but excluding
 premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
 of less than $1,000,000,000; and
     (2) the insurance holding company system:
     (i) has no insurers within the insurance holding company's structure that are domiciled
 outside of the United States or a United States territory;
     (ii) does not include a banking, depository, or other financial entity that is subject to an
 identified regulatory capital framework; and
     (iii) attests that no material changes in transactions between insurers and noninsurers in
 the group have occurred and the noninsurers within the holding company system do not
 pose a material financial risk to the insurer's ability to honor policyholder obligations.
     Subd. 3. Previous exemption; required filing. For an insurance holding company that
 has previously met an exemption with respect to the group capital calculation under
Article 4 Sec. 14.  37
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  subdivision 1 or 2, the commissioner may at any time require the ultimate controlling person
  to file an annual group capital calculation, completed in accordance with the NAIC group
  capital calculation instructions, if:
      (1) an insurer within the insurance holding company system is in a risk-based capital
  action level event under section 60A.62 or a similar standard for a non-United States insurer;
      (2) an insurer within the insurance holding company system meets one or more of the
  standards of an insurer deemed to be in hazardous financial condition, as defined under
  section 60E.02, subdivision 5; or
      (3) an insurer within the insurance holding company system otherwise exhibits qualities
 of a troubled insurer, as determined by the commissioner based on unique circumstances,
 including but not limited to the type and volume of business written, ownership and
 organizational structure, federal agency requests, and international supervisor requests.
     Subd. 4. Non-United States jurisdictions; recognition and acceptance. A non-United
 States jurisdiction is deemed to recognize and accept the group capital calculation if the
 non-United States jurisdiction:
     (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
     (i) recognizes the United States state regulatory approach to group supervision and group
 capital by providing confirmation by a competent regulatory authority in the non-United
 States jurisdiction that insurers and insurance groups whose lead state is accredited by the
 NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
 insurance group supervision, including worldwide group governance, solvency and capital,
 and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
 including worldwide group governance, solvency and capital, and reporting, at the level of
 the worldwide parent undertaking of the insurance or reinsurance group by the non-United
 States jurisdiction; or
     (ii) if no United States insurance group operates in the non-United States jurisdiction,
 indicates formally in writing to the lead state with a copy to the International Association
 of Insurance Supervisors that the group capital calculation is an acceptable international
 capital standard. The formal indication under this item serves as the documentation otherwise
 required under item (i); and
     (2) provides confirmation by a competent regulatory authority in the non-United States
 jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
 affiliated entities, if applicable, must be provided to the commissioner in accordance with
Article 4 Sec. 14.  38
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  a memorandum of understanding or similar document between the commissioner and the
  non-United States jurisdiction, including but not limited to the International Association of
  Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral
  memoranda of understanding coordinated by the NAIC. The commissioner must determine,
  in consultation with the NAIC committee process, if the information sharing agreement
  requirements are effective.
      Subd. 5. Non-United States jurisdiction; publication. (a) A list of non-United States
  jurisdictions that recognize and accept the group capital calculation under section 60D.19,
  subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
 process to assist the commissioner determine what insurers must file an annual group capital
 calculation. The list must clarify the situations in which a jurisdiction is exempt from filing
 under section 60D.19, subdivision 11b, paragraph (a), clause (4). To assist with a
 determination under section 60D.19, subdivision 11b, paragraph (b), the list must also
 identify whether a jurisdiction that is exempt under section 60D.19, subdivision 11b,
 paragraph (a), clause (3) or (4), requires a group capital filing for any United States insurance
 group's operations in the non-United States jurisdiction.
     (b) For a non-United States jurisdiction where no United States insurance group operates,
 the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
 support for a recommendation to be published that the non-United States jurisdiction is a
 jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
 committee process.
     (c) If the commissioner makes a determination pursuant to section 60D.19, subdivision
 11b, that differs from the NAIC list, the commissioner must provide thoroughly documented
 justification to the NAIC and other states.
     (d) Upon a determination by the commissioner that a non-United States jurisdiction no
 longer meets one or more of the requirements to recognize and accept the group capital
 calculation, the commissioner may provide a recommendation to the NAIC that the
 non-United States jurisdiction be removed from the list of jurisdictions that recognize and
 accept the group capital calculation.
   Sec. 15. Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:
     Subdivision 1. Transactions within an insurance holding company system. (a)
 Transactions within an insurance holding company system to which an insurer subject to
 registration is a party are subject to the following standards:
Article 4 Sec. 15.  39
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (1) the terms shall be fair and reasonable;
      (2) agreements for cost-sharing services and management shall include the provisions
  required by rule issued by the commissioner;
      (3) charges or fees for services performed shall be reasonable;
      (4) expenses incurred and payment received shall be allocated to the insurer in conformity
  with customary insurance accounting practices consistently applied;
      (5) the books, accounts, and records of each party to all such transactions shall be so
  maintained as to clearly and accurately disclose the nature and details of the transactions
  including this accounting information as is necessary to support the reasonableness of the
 charges or fees to the respective parties; and
     (6) the insurer's surplus as regards policyholders following any dividends or distributions
 to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
 and adequate to its financial needs.;
     (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
 financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
 be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
 may require the insurer to secure and maintain either a deposit, held by the commissioner,
 or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
 the duration of the contract, agreement, or the existence of the condition for which the
 commissioner required the deposit or bond. When determining whether a deposit or bond
 is required, the commissioner must consider whether concerns exist with respect to the
 affiliated person's ability to fulfill the contract or agreement if the insurer entered into
 liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
 that would be grounds for supervision, conservation, or a delinquency proceeding, and a
 deposit or bond is necessary, the commissioner may determine the amount of the deposit
 or bond, not to exceed the value of the contract or agreement in any one year, and whether
 the deposit or bond is required for a single contract, multiple contracts, or a contract only
 with a specific person or persons;
     (8) all of an insurer's records and data held by an affiliate are and remain the property
 of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
 readily capable of segregation, at no additional cost to the insurer, from all other persons'
 records and data. For purposes of this clause, records and data include all records and data
 that are otherwise the property of the insurer in whatever form maintained, including but
 not limited to claims and claim files, policyholder lists, application files, litigation files,
Article 4 Sec. 15.  40
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  premium records, rate books, underwriting manuals, personnel records, financial records,
  or similar records within the affiliate's possession, custody, or control. At the request of the
  insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
  of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
  on which the data are maintained, (iii) obtain the software that runs the operating systems
  either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
  the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
  must provide a waiver of any landlord lien or other encumbrance to provide the insurer
  access to all records and data in the event the affiliate defaults under a lease or other
 agreement; and
     (9) premiums or other funds belonging to the insurer that are collected or held by an
 affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
 Any right of offset in the event an insurer is placed into receivership is subject to chapter
 576.
     (b) The following transactions involving a domestic insurer and any person in its
 insurance holding company system, including amendments or modifications of affiliate
 agreements previously filed pursuant to this section, which are subject to any materiality
 standards contained in clauses (1) to (7), may not be entered into unless the insurer has
 notified the commissioner in writing of its intention to enter into the transaction at least 30
 days prior thereto, or a shorter period the commissioner permits, and the commissioner has
 not disapproved it within this period. The notice for amendments or modifications must
 include the reasons for the change and the financial impact on the domestic insurer. Informal
 notice must be reported, within 30 days after a termination of a previously filed agreement,
 to the commissioner for determination of the type of filing required, if any:
     (1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
 provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
 lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
 policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
 each as of the 31st day of December next preceding;
     (2) loans or extensions of credit to any person who is not an affiliate, where the insurer
 makes the loans or extensions of credit with the agreement or understanding that the proceeds
 of the transactions, in whole or in substantial part, are to be used to make loans or extensions
 of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
 making such loans or extensions of credit provided the transactions are equal to or exceed:
 (i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
Article 4 Sec. 15.  41
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
  percent of the insurer's admitted assets; each as of the 31st day of December next preceding;
      (3) reinsurance agreements or modifications to those agreements, including: (i) all
  reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
  a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
  insurer's liabilities in any of the next three years, equals or exceeds five percent of the
  insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
  including those agreements which may require as consideration the transfer of assets from
  an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
 nonaffiliate that any portion of such the assets will be transferred to one or more affiliates
 of the insurer;
     (4) all management agreements, service contracts, tax allocation agreements, guarantees,
 and all cost-sharing arrangements;
     (5) guarantees when made by a domestic insurer; provided, however, that a guarantee
 which is quantifiable as to amount is not subject to the notice requirements of this paragraph
 unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
 percent of surplus as regards policyholders as of the 31st day of December next preceding.
 Further, all guarantees which are not quantifiable as to amount are subject to the notice
 requirements of this paragraph;
     (6) direct or indirect acquisitions or investments in a person that controls the insurer or
 in an affiliate of the insurer in an amount which, together with its present holdings in the
 investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
 acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, as otherwise
 authorized under this chapter, or in nonsubsidiary insurance affiliates that are subject to the
 provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and
     (7) any material transactions, specified by regulation, which the commissioner determines
 may adversely affect the interests of the insurer's policyholders.
     Nothing contained in this section authorizes or permits any transactions that, in the case
 of an insurer not a member of the same insurance holding company system, would be
 otherwise contrary to law.
     (c) A domestic insurer may not enter into transactions which are part of a plan or series
 of like transactions with persons within the insurance holding company system if the purpose
 of those separate transactions is to avoid the statutory threshold amount and thus avoid the
 review that would occur otherwise. If the commissioner determines that the separate
Article 4 Sec. 15.  42
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  transactions were entered into over any 12-month period for the purpose, the commissioner
  may exercise the authority under section 60D.25.
      (d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
  whether the transactions comply with the standards set forth in paragraph (a), and whether
  they may adversely affect the interests of policyholders.
      (e) The commissioner shall be notified within 30 days of any investment of the domestic
  insurer in any one corporation if the total investment in the corporation by the insurance
  holding company system exceeds ten percent of the corporation's voting securities.
      (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
 subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
 conservatorship, or receivership proceedings against the insurer and to the authority of a
 supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
 chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
 obligations under the agreement or contract to perform services for the insurer that are: (1)
 an integral part of the insurer's operations, including but not limited to management,
 administrative, accounting, data processing, marketing, underwriting, claims handling,
 investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
 the insurer's obligations under insurance policies. The commissioner may require that an
 agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
 in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
 under this paragraph.
   Sec. 16. Minnesota Statutes 2024, section 60D.217, is amended to read:
     60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
 INSURANCE GROUPS.
     (a) The commissioner is authorized to act as the groupwide supervisor for any
 internationally active insurance group in accordance with the provisions of this section.
 However, the commissioner may otherwise acknowledge another regulatory official as the
 groupwide supervisor where the internationally active insurance group:
     (1) does not have substantial insurance operations in the United States;
     (2) has substantial insurance operations in the United States, but not in this state; or
     (3) has substantial insurance operations in the United States and this state, but the
 commissioner has determined pursuant to the factors set forth in subsections paragraphs (b)
 and (f) that the other regulatory official is the appropriate groupwide supervisor.
Article 4 Sec. 16.  43
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  An insurance holding company system that does not otherwise qualify as an internationally
  active insurance group may request that the commissioner make a determination or
  acknowledgment as to a groupwide supervisor pursuant to this section.
(b) In cooperation with other state, federal, and international regulatory agencies, the
  commissioner will must identify a single groupwide supervisor for an internationally active
  insurance group. The commissioner may determine that the commissioner is the appropriate
  groupwide supervisor for an internationally active insurance group that conducts substantial
  insurance operations concentrated in this state. However, the commissioner may acknowledge
  that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
 for the internationally active insurance group. The commissioner shall consider the following
 factors when making a determination or acknowledgment under this subsection paragraph:
(1) the place of domicile of the insurers within the internationally active insurance group
 that hold the largest share of the group's written premiums, assets, or liabilities;
(2) the place of domicile of the top-tiered insurer(s) insurer or insurers in the insurance
 holding company system of the internationally active insurance group;
(3) the location of the executive offices or largest operational offices of the internationally
 active insurance group;
(4) whether another regulatory official is acting or is seeking to act as the groupwide
 supervisor under a regulatory system that the commissioner determines to be:
(i) substantially similar to the system of regulation provided under the laws of this state;
 or
(ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
 analysis, and cooperation with other regulatory officials; and
(5) whether another regulatory official acting or seeking to act as the groupwide
 supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
 However, a commissioner identified under this section as the groupwide supervisor may
 determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
 supervisor. The acknowledgment of the groupwide supervisor shall be made after
 consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
 with and subject to the acknowledgment of other regulatory officials involved with
 supervision of members of the internationally active insurance group, and in consultation
 with the internationally active insurance group.
Article 4 Sec. 16.  44
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (c) Notwithstanding any other provision of law, when another regulatory official is acting
  as the groupwide supervisor of an internationally active insurance group, the commissioner
  shall acknowledge that regulatory official as the groupwide supervisor. However, in the
  event of a material change in the internationally active insurance group that results in:
      (1) the internationally active insurance group's insurers domiciled in this state holding
  the largest share of the group's premiums, assets, or liabilities; or
      (2) this state being the place of domicile of the top-tiered insurer(s) insurer or insurers
  in the insurance holding company system of the internationally active insurance group,
  the commissioner shall make a determination or acknowledgment as to the appropriate
 groupwide supervisor for such an internationally active insurance group pursuant to
 subsection paragraph (b).
     (d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
 insurer registered pursuant to section 60D.19 all information necessary to determine whether
 the commissioner may act as the groupwide supervisor of an internationally active insurance
 group or if the commissioner may acknowledge another regulatory official to act as the
 groupwide supervisor. Prior to issuing a determination that an internationally active insurance
 group is subject to groupwide supervision by the commissioner, the commissioner shall
 notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
 within the internationally active insurance group. The internationally active insurance group
 shall have not less than 30 days to provide the commissioner with additional information
 pertinent to the pending determination. The commissioner shall publish in the State Register
 and on the department's website the identity of internationally active insurance groups that
 the commissioner has determined are subject to groupwide supervision by the commissioner.
     (e) If the commissioner is the groupwide supervisor for an internationally active insurance
 group, the commissioner is authorized to engage in any of the following groupwide
 supervision activities:
     (1) assess the enterprise risks within the internationally active insurance group to ensure
 that:
     (i) the material financial condition and liquidity risks to the members of the internationally
 active insurance group that are engaged in the business of insurance are identified by
 management; and
     (ii) reasonable and effective mitigation measures are in place; or
Article 4 Sec. 16.  45
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) request, from any member of an internationally active insurance group subject to the
  commissioner's supervision, information necessary and appropriate to assess enterprise risk,
  including but not limited to information about the members of the internationally active
  insurance group regarding:
      (i) governance, risk assessment, and management;
      (ii) capital adequacy; and
      (iii) material intercompany transactions;
      (3) coordinate and, through the authority of the regulatory officials of the jurisdictions
  where members of the internationally active insurance group are domiciled, compel
 development and implementation of reasonable measures designed to ensure that the
 internationally active insurance group is able to timely recognize and mitigate enterprise
 risks to members of such the internationally active insurance group that are engaged in the
 business of insurance;
     (4) communicate with other state, federal and international regulatory agencies for
 members within the internationally active insurance group and share relevant information
 subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
 set forth in section 60D.215 or otherwise;
     (5) enter into agreements with or obtain documentation from any insurer registered under
 section 60D.19, any member of the internationally active insurance group, and any other
 state, federal, and international regulatory agencies for members of the internationally active
 insurance group, providing the basis for or otherwise clarifying the commissioner's role as
 groupwide supervisor, including provisions for resolving disputes with other regulatory
 officials. Such Agreements or documentation under this clause shall not serve as evidence
 in any proceeding that any insurer or person within an insurance holding company system
 not domiciled or incorporated in this state is doing business in this state or is otherwise
 subject to jurisdiction in this state; and
     (6) other groupwide supervision activities, consistent with the authorities and purposes
 enumerated above, as considered necessary by the commissioner.
     (f) If the commissioner acknowledges that another regulatory official from a jurisdiction
 that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
 authorized to reasonably cooperate, through supervisory colleges or otherwise, with
 groupwide supervision undertaken by the groupwide supervisor, provided that:
     (1) the commissioner's cooperation is in compliance with the laws of this state; and
Article 4 Sec. 16.  46
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) the regulatory official acknowledged as the groupwide supervisor also recognizes
  and cooperates with the commissioner's activities as a groupwide supervisor for other
  internationally active insurance groups where applicable. Where such recognition and
  cooperation by the groupwide supervisor is not reasonably reciprocal, the commissioner is
  authorized to refuse recognition and cooperation.
      (g) The commissioner is authorized to enter into agreements with or obtain documentation
  from any insurer registered under section 60D.19, any affiliate of the insurer, and other
  state, federal, and international regulatory agencies for members of the internationally active
  insurance group, that provide the basis for or otherwise clarify a regulatory official's role
 as groupwide supervisor.
     (h) A registered insurer subject to this section shall be liable for and shall pay the
 reasonable expenses of the commissioner's participation in the administration of this section,
 including the engagement of attorneys, actuaries, and any other professionals and all
 reasonable travel expenses.
   Sec. 17. Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:
     Subdivision 1. Classification protection and use of information by commissioner. (a)
 Documents, materials, or other information in the possession or control of the department
 that are obtained by or disclosed to the commissioner or any other person in the course of
 an examination or investigation made pursuant to section 60D.21 and all information reported
 pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
 (e); 60D.18; 60D.19; and 60D.20,; and 60D.217, are classified as confidential or protected
 nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
 in evidence in a private civil action. However, the commissioner may use the documents,
 materials, or other information in the furtherance of any regulatory or legal action brought
 as a part of the commissioner's official duties. The commissioner shall not otherwise make
 the documents, materials, or other information public without the prior written consent of
 the insurer to which it pertains unless the commissioner, after giving the insurer and its
 affiliates who would be affected by this action notice and opportunity to be heard, determines
 that the interest of policyholders, shareholders, or the public will be is served by the
 publication of it, in which event the commissioner may publish all or any part in the manner
 the commissioner deems appropriate.
     (b) For purposes of the information reported and provided to the department pursuant
 to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
 the group capital calculation and group capital ratio produced within the calculation and
Article 4 Sec. 17.  47
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  any group capital information received from an insurance holding company supervised by
  the Federal Reserve Board or any United States groupwide supervisor.
      (c) For purposes of the information reported and provided to the department pursuant
  to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
  the liquidity stress test results and supporting disclosures and any liquidity stress test
  information received from an insurance holding company supervised by the Federal Reserve
  Board and non-United States groupwide supervisors.
    Sec. 18. Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:
      Subd. 3. Sharing of information. In order to assist in the performance of the
 commissioner's duties, the commissioner:
     (1) may share documents, materials, or other information, including the confidential,
 protected nonpublic, and privileged documents, materials, or information subject to this
 section, including proprietary and trade secret documents and materials, with: (i) other state,
 federal, and international regulatory agencies, with; (ii) the NAIC and its affiliates and
 subsidiaries,; (iii) any third-party consultants designated by the commissioner; and with
 (iv) state, federal, and international law enforcement authorities, including members of any
 supervisory college described in section 60D.215, provided that the recipient agrees in
 writing to maintain the confidentiality and privileged status of the document, material, or
 other information, and has verified in writing the legal authority to maintain confidentiality;
     (2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
 privileged documents, materials, or information reported pursuant to section 60D.19,
 subdivision 11a, with commissioners of states having statutes or regulations substantially
 similar to subdivision 1 and who have agreed in writing not to disclose this information;
     (3) may receive documents, materials, or information, including otherwise confidential
 and privileged documents, materials, or information from the NAIC and its the NAIC's
 affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
 or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
 privileged any document, material, or information received with notice or the understanding
 that it is confidential or privileged under the laws of the jurisdiction that is the source of the
 document, material, or information; and
     (4) shall enter into written agreements with the NAIC and a third-party consultant
 designated by the commissioner governing sharing and use of information provided pursuant
 to sections 60D.15 to 60D.29 consistent with this clause that shall:
Article 4 Sec. 18.  48
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (i) specify procedures and protocols regarding the confidentiality and security of
  information shared with the NAIC and its affiliates and subsidiaries or a third-party consultant
  designated by the commissioner pursuant to sections 60D.15 to 60D.29, including procedures
  and protocols for sharing by the NAIC with other state, federal, or international regulators.
  The agreement must provide that the recipient agrees in writing to maintain the confidentiality
  and privileged status of the documents, materials, or other information, and has verified in
  writing the legal authority to maintain confidentiality;
      (ii) specify that ownership of information shared with the NAIC and its affiliates and
  subsidiaries or a third-party consultant pursuant to sections 60D.15 to 60D.29 remains with
 the commissioner and the NAIC's or a third-party consultant's, as designated by the
 commissioner, use of the information is subject to the direction of the commissioner;
     (iii) excluding documents, material, or information reported pursuant to section 60D.19,
 subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
 commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
 in a permanent database after the underlying analysis is completed;
     (iii) (iv) require prompt notice to be given to an insurer whose confidential or protected
 nonpublic information in the possession of the NAIC or a third-party consultant designated
 by the commissioner pursuant to sections 60D.15 to 60D.29 is subject to a request or
 subpoena to the NAIC or a third-party consultant designated by the commissioner for
 disclosure or production; and
     (iv) (v) require the NAIC and its affiliates and subsidiaries or a third-party consultant
 designated by the commissioner to consent to intervention by an insurer in any judicial or
 administrative action in which the NAIC and its affiliates and subsidiaries or a third-party
 consultant designated by the commissioner may be required to disclose confidential or
 protected nonpublic information about the insurer shared with the NAIC and its affiliates
 and subsidiaries or a third-party consultant designated by the commissioner pursuant to
 sections 60D.15 to 60D.29.; and
     (vi) for documents, material, or information reported pursuant to section 60D.19,
 subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
 notification of the identity of the consultant to the applicable insurers.
   Sec. 19. Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:
     Subd. 6. Classification protection and use by others. Documents, materials, or other
 information in the possession or control of the NAIC or a third-party consultant designated
Article 4 Sec. 19.  49
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  by the commissioner pursuant to sections 60D.15 to 60D.29 are confidential, protected
  nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
  admissible in evidence in a private civil action.
    Sec. 20. Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
  read:
      Subd. 7. Certain disclosures or publication prohibited. (a) The group capital calculation
  and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
  liquidity stress test along with the liquidity stress test's results and supporting disclosures
  required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
 and capital adequacy and group liquidity risks, respectively, and are not intended as a means
 to rank insurers or insurance holding company systems generally.
     (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
 disseminating, circulating, or placing before the public, or causing directly or indirectly to
 be made, published, disseminated, circulated, or placed before the public in a newspaper,
 magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
 or over any radio, television station, or any electronic means of communication available
 to the public, or in any other way as an advertisement, announcement, or statement containing
 a representation or statement with regard to the group capital calculation, group capital ratio,
 the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
 insurer or any insurer group, or of any component derived in the calculation by any insurer,
 broker, or other person engaged in any manner in the insurance business is misleading and
 is prohibited.
     (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
 publication if any materially false statement with respect to the group capital calculation,
 resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
 insurance group's group capital calculation or resulting group capital ratio, liquidity stress
 test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
 of any amount to an insurer's or insurance group's liquidity stress test result or supporting
 disclosures is published in any written publication and the insurer is able to demonstrate to
 the commissioner with substantial proof the statement's falsity or inappropriateness. The
 sole purpose of an announcement under this paragraph must be to rebut the materially false
 statement.
Article 4 Sec. 20.  50
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 21. Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:
      Subd. 2. Voting of securities; when prohibited. No security that is the subject of any
  agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
  contravention of the provisions of this chapter or of any rule or order issued by the
  commissioner may be voted at any shareholder's meeting, or may be counted for quorum
  purposes, and any action of shareholders requiring the affirmative vote of a percentage of
  shares may be taken as though the securities were not issued and outstanding. No action
  taken at the meeting shall be invalidated by the voting of the securities, unless the action
  would materially affect control of the insurer or unless the courts of this state have so
 ordered. If an insurer or the commissioner has reason to believe that any security of the
 insurer has been or is about to be acquired in contravention of the provisions of this chapter
 or of any rule or order issued by the commissioner, the insurer or the commissioner may
 apply to the district court for the county in which the insurer has its principal place of
 business to enjoin any offer, request, invitation, agreement, or acquisition made in
 contravention of section 60D.16 60D.17 or any rule or order issued by the commissioner
 to enjoin the voting of any security so acquired, to void any vote of the security already cast
 at any meeting of shareholders and for other equitable relief as the nature of the case and
 the interest of the insurer's policyholders or the public requires.
   Sec. 22. Minnesota Statutes 2024, section 60D.25, is amended to read:
     60D.25 RECEIVERSHIP.
     Whenever it appears to the commissioner that any person has committed a violation of
 this chapter that so impairs the financial condition of a domestic insurer as to threaten
 insolvency or make the further transaction of business by it hazardous to its policyholders,
 creditors, shareholders, or the public, then the commissioner may proceed as provided in
 chapter 60B to take possessions of the property of the domestic insurer and to conduct the
 business of that the domestic insurer.
   Sec. 23. Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
 to read:
     Subd. 3. Exception. Notwithstanding subdivision 1, health maintenance organizations
 are not subject to oversight under this section with respect to section 60D.20, subdivision
 1, paragraphs (a), clauses (7) to (9), and (f).
Article 4 Sec. 23.  51
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
ARTICLE 5
MEDICARE SUPPLEMENT INSURANCE
    Section 1. Minnesota Statutes 2024, section 62A.31, subdivision 1b, is amended to read:
      Subd. 1b. Preexisting condition coverage. (a) The policy must cover preexisting
  conditions during the first six months of coverage if the insured was not diagnosed or treated
  for the particular condition during the 90 days immediately preceding the effective date of
  coverage.
      (b) The policy must cover preexisting conditions if the insured meets the requirements
  under subdivision 1r, paragraph (c).
     EFFECTIVE DATE. This section is effective August 1, 2026.
   Sec. 2. Minnesota Statutes 2024, section 62A.31, subdivision 1f, is amended to read:
     Subd. 1f. Suspension based on entitlement to medical assistance. (a) The policy or
 certificate must provide that benefits and premiums under the policy or certificate shall be
 suspended for any period that may be provided by federal regulation at the request of the
 policyholder or certificate holder for the period, not to exceed 24 months, in which the
 policyholder or certificate holder has applied for and is determined to be entitled to medical
 assistance under title XIX of the Social Security Act, but only if the policyholder or certificate
 holder notifies the issuer of the policy or certificate within 90 days after the date the
 individual becomes entitled to this assistance.
     (b) If suspension occurs and if the policyholder or certificate holder loses entitlement
 to this medical assistance, the policy or certificate shall be automatically reinstated, effective
 as of the date of termination of this entitlement, if the policyholder or certificate holder
 provides notice of loss of the entitlement within 90 days after the date of the loss and pays
 the premium attributable to the period, effective as of the date of termination of entitlement.
     (c) The policy must provide that upon reinstatement (1) there is no waiting period if the
 enrollee meets the requirements under subdivision 1r, paragraph (c), with respect to treatment
 of preexisting conditions, (2) coverage is provided which is substantially equivalent to
 coverage in effect before the date of the suspension. If the suspended policy provided
 coverage for outpatient prescription drugs, reinstitution of the policy for Medicare Part D
 enrollees must be without coverage for outpatient prescription drugs and must otherwise
 provide coverage substantially equivalent to the coverage in effect before the date of
 suspension, and (3) premiums are classified on terms that are at least as favorable to the
Article 5 Sec. 2.  52
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  policyholder or certificate holder as the premium classification terms that would have applied
  to the policyholder or certificate holder had coverage not been suspended.
      EFFECTIVE DATE. This section is effective August 1, 2026.
    Sec. 3. Minnesota Statutes 2024, section 62A.31, subdivision 1h, is amended to read:
      Subd. 1h. Limitations on denials, conditions, and pricing of coverage. (a) No health
  carrier issuing Medicare-related coverage in this state may impose preexisting condition
  limitations or otherwise deny or condition the issuance or effectiveness of any such coverage
  available for sale in this state, nor may it discriminate in the pricing of such coverage,
  because of the health status, claims experience, receipt of health care, medical condition,
 or age of an applicant where an application for such coverage is submitted: (1) prior to or
 during the six-month period beginning with the first day of the month in which an individual
 first enrolled for benefits under Medicare Part B; or (2) during the open enrollment period.
 if the applicant:
     (i) is age 65 to 70 and the applicant is applying for coverage during the open enrollment
 period for the first time; and
     (ii) meets the requirements under subdivision 1r, paragraph (c).
     (b) Notwithstanding paragraph (a), the premium increases permitted under subdivision
 1r are allowed.
     (c) This subdivision applies to each Medicare-related coverage offered by a health carrier
 regardless of whether the individual has attained the age of 65 years.
     (d) If an individual who is enrolled in Medicare Part B due to disability status is
 involuntarily disenrolled due to loss of disability status, the individual is eligible for another
 six-month enrollment period provided under this subdivision beginning the first day of the
 month in which the individual later becomes eligible for and enrolls again in Medicare Part
 B and during the open enrollment period. An individual who is or was previously enrolled
 in Medicare Part B due to disability status is eligible for another six-month enrollment
 period under this subdivision beginning the first day of the month in which the individual
 has attained the age of 65 years and either maintains enrollment in, or enrolls again in,
 Medicare Part B and during the open enrollment period. If an individual enrolled in Medicare
 Part B voluntarily disenrolls from Medicare Part B because the individual becomes enrolled
 under an employee welfare benefit plan, the individual is eligible for another six-month
 enrollment period, as provided in this subdivision, beginning the first day of the month in
Article 5 Sec. 3.  53
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  which the individual later becomes eligible for and enrolls again in Medicare Part B and
  during the open enrollment period.
      EFFECTIVE DATE. This section is effective August 1, 2026.
    Sec. 4. Minnesota Statutes 2024, section 62A.31, subdivision 1p, is amended to read:
      Subd. 1p. Renewal or continuation provisions. (a) Medicare supplement policies and
  certificates shall include a renewal or continuation provision. The language or specifications
  of the provision shall be consistent with the type of contract issued. The provision shall be
  appropriately captioned and shall appear on the first page of the policy or certificate, and
  shall include any reservation by the issuer of the right to change premiums. Except for riders
 or endorsements by which the issuer effectuates a request made in writing by the insured,
 exercises a specifically reserved right under a Medicare supplement policy or certificate,
 or is required to reduce or eliminate benefits to avoid duplication of Medicare benefits, all
 riders or endorsements added to a Medicare supplement policy or certificate after the date
 of issue or at reinstatement or renewal that reduce or eliminate benefits or coverage in the
 policy or certificate shall require a signed acceptance by the insured. After the date of policy
 or certificate issue, a rider or endorsement that increases benefits or coverage with a
 concomitant increase in premium during the policy or certificate term shall be agreed to in
 writing and signed by the insured, unless the benefits are required by the minimum standards
 for Medicare supplement policies or if the increased benefits or coverage is required by
 law. Where a separate additional premium is charged for benefits provided in connection
 with riders or endorsements, the premium charge shall be set forth in the policy, declaration
 page, or certificate. If a Medicare supplement policy or certificate contains limitations with
 respect to preexisting conditions, the limitations must appear as a separate paragraph of the
 policy or certificate and be labeled as "preexisting condition limitations."
     (b) Issuers of accident and sickness policies or certificates that provide hospital or medical
 expense coverage on an expense incurred or indemnity basis to persons eligible for Medicare
 shall provide to those applicants a "Guide to Health Insurance for People with Medicare"
 in the form developed by the Centers for Medicare and Medicaid Services and in a type
 size no smaller than 12-point type. Delivery of the guide must be made whether or not such
 policies or certificates are advertised, solicited, or issued as Medicare supplement policies
 or certificates as defined in this section and section 62A.3099. Except in the case of direct
 response issuers, delivery of the guide must be made to the applicant at the time of
 application, and acknowledgment of receipt of the guide must be obtained by the issuer.
Article 5 Sec. 4.  54
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  Direct response issuers shall deliver the guide to the applicant upon request, but no later
  than the time at which the policy is delivered.
      EFFECTIVE DATE. This section is effective August 1, 2026.
    Sec. 5. Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:
      Subd. 1r. Community rate. (a) Each health maintenance organization, health service
  plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
  shall establish a separate community rate for that coverage. Beginning January 1, 1993, No
  Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
  except at the community rate required by this subdivision. The same community rate must
 apply to newly issued coverage and to renewal coverage.
     (b) For coverage that supplements Medicare and for the Part A rate calculation for plans
 governed by section 1833 of the federal Social Security Act, United States Code, title 42,
 section 1395, et seq., the community rate may take into account only the following factors:
     (1) actuarially valid differences in benefit designs or provider networks;
     (2) geographic variations in rates if preapproved by the commissioner of commerce;
 and
     (3) premium reductions in recognition of healthy lifestyle behaviors, including but not
 limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
 and must relate only to those healthy lifestyle behaviors that have a proven positive impact
 on health. Factors used by the health carrier making this premium reduction must be filed
 with and approved by the commissioner of commerce.; and
     (4) for coverage that supplements Medicare, premium increases on an individual who
 enrolls in a Medicare supplement policy outside of the individual's initial enrollment period
 in Medicare Part B. This paragraph does not apply to individuals who enroll in a Medicare
 supplement policy pursuant to subdivision 1u, paragraph (b), clauses (1) to (8). The increases
 described in paragraph (c) apply each year an individual is enrolled in a Medicare supplement
 policy and are in addition to any standard increases in community rate.
     (c) The premium increases permitted under paragraph (b), clause (4):
     (1) apply to an individual age 65 to 70;
     (2) apply to an individual who enrolls in a Medicare supplement policy pursuant to
 subdivision 1h, paragraph (a), clause (2);
     (3) apply only the first time the individual enrolls;
Article 5 Sec. 5.  55
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (4) apply for the duration of time the policy is in force; and
      (5) must equal:
      (i) for an individual who enrolls during the 2026 open enrollment period, 15 percent;
      (ii) for an individual who enrolls during the 2027 open enrollment period, 20 percent;
      (iii) for an individual who enrolls during the 2028 open enrollment period, 25 percent;
      (iv) for an individual who enrolls during the 2029 open enrollment period, 30 percent;
      (v) for an individual who enrolls during the 2030 open enrollment period, 35 percent;
  and
      (vi) for an individual who enrolls during an open enrollment period after 2029, 35 percent.
 If an individual age 65 to 70 enrolls in a subsequent Medicare supplement policy that is not
 a replacement or renewal, the individual is not subject to the premium increases as described
 in paragraph (b), clause (4).
     For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey, Scott,
 or Washington County, a health plan may, at the option of the health carrier, phase in
 compliance under the following timetable:
     (i) a premium adjustment as of March 1, 1993, that consists of one-half of the difference
 between the community rate that would be applicable to the person as of March 1, 1993,
 and the premium rate that would be applicable to the person as of March 1, 1993, under the
 rate schedule permitted on December 31, 1992. A health plan may, at the option of the
 health carrier, implement the entire premium difference described in this clause for any
 person as of March 1, 1993, if the premium difference would be 15 percent or less of the
 premium rate that would be applicable to the person as of March 1, 1993, under the rate
 schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
 of whether the premium difference causes premiums to rise or to fall. The premium difference
 described in this clause is in addition to any premium adjustment attributable to medical
 cost inflation or any other lawful factor and is intended to describe only the premium
 difference attributable to the transition to the community rate; and
     (ii) with respect to any person whose premium adjustment was constrained under clause
 (i), a premium adjustment as of January 1, 1994, that consists of the remaining one-half of
 the premium difference attributable to the transition to the community rate, as described in
 clause (i).
Article 5 Sec. 5.  56
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      A health plan that initially follows the phase-in timetable may at any subsequent time
  comply on a more rapid timetable. A health plan that is in full compliance as of January 1,
  1993, may not use the phase-in timetable and must remain in full compliance. Health plans
  that follow the phase-in timetable must charge the same premium rate for newly issued
  coverage that they charge for renewal coverage. A health plan whose premiums are
  constrained by clause (i) may take the constraint into account in establishing its community
  rate.
      From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
  option, charge the community rate under this paragraph or may instead charge premiums
 permitted as of December 31, 1992.
     EFFECTIVE DATE. This section is effective August 1, 2026.
   Sec. 6. Minnesota Statutes 2024, section 62A.31, subdivision 1u, is amended to read:
     Subd. 1u. Guaranteed issue for eligible persons. (a)(1) Eligible persons are those
 individuals described in paragraph (b) who seek to enroll under the policy during the period
 specified in paragraph (c) and who submit evidence of the date of termination or
 disenrollment described in paragraph (b), or of the date of Medicare Part D enrollment, with
 the application for a Medicare supplement policy.
     (2) With respect to eligible persons, an issuer shall not: deny or condition the issuance
 or effectiveness of a Medicare supplement policy described in paragraph (c) that is offered
 and is available for issuance to new enrollees by the issuer; discriminate in the pricing of
 such a Medicare supplement policy because of health status, claims experience, receipt of
 health care, medical condition, or age; or impose an exclusion of benefits based upon a
 preexisting condition under such a Medicare supplement policy.
     (b) An eligible person is an individual described in any of the following:
     (1) the individual is enrolled under an employee welfare benefit plan that provides health
 benefits that supplement the benefits under Medicare; and the plan terminates, or the plan
 ceases to provide all such supplemental health benefits to the individual;
     (2) the individual is enrolled with a Medicare Advantage organization under a Medicare
 Advantage plan under Medicare Part C, and any of the following circumstances apply, or
 the individual is 65 years of age or older and is enrolled with a Program of All-Inclusive
 Care for the Elderly (PACE) provider under section 1894 of the federal Social Security Act,
 and there are circumstances similar to those described in this clause that would permit
Article 5 Sec. 6.  57
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  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
Article 5 Sec. 6.  58
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (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); or
Article 5 Sec. 6.  59
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(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.
Article 5 Sec. 6.  60
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (7) For all individuals described in paragraph (b), the open enrollment period is a
  guaranteed issue period. 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 (4), is any Medicare supplement policy that has a benefit
 package consisting of the basic Medicare supplement plan described in section 62A.316,
 paragraph (a), plus any combination of the three optional riders described in section 62A.316,
 paragraph (b), clauses (1) to (3), offered by any issuer;
     (2) paragraph (b), clause (5), is the same Medicare supplement policy in which the
 individual was most recently previously enrolled, if available from the same issuer, or, if
 not so available, any policy described in clause (1) offered by any issuer, except that after
 December 31, 2005, if the individual was most recently enrolled in a Medicare supplement
 policy with an outpatient prescription drug benefit, a Medicare supplement policy to which
 the individual is entitled under paragraph (b), clause (5), is:
     (i) the policy available from the same issuer but modified to remove outpatient
 prescription drug coverage; or
Article 5 Sec. 6.  61
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (ii) at the election of the policyholder, a policy described in clause (4), except that the
  policy may be one that is offered and available for issuance to new enrollees that is offered
  by any issuer;
      (3) paragraph (b), clause (6), is any Medicare supplement policy offered by any issuer;
      (4) paragraph (b), clause (7), is a Medicare supplement policy that has a benefit package
  classified as a basic plan under section 62A.316 if the enrollee's existing Medicare
  supplement policy is a basic plan or, if the enrollee's existing Medicare supplement policy
  is an extended basic plan under section 62A.315, a basic or extended basic plan at the option
  of the enrollee, provided that the policy is offered and is available for issuance to new
 enrollees by the same issuer that issued the individual's Medicare supplement policy with
 outpatient prescription drug coverage. The issuer must permit the enrollee to retain all
 optional benefits contained in the enrollee's existing coverage, other than outpatient
 prescription drugs, subject to the provision that the coverage be offered and available for
 issuance to new enrollees by the same issuer.
     (f)(1) At the time of an event described in paragraph (b), because of which an individual
 loses coverage or benefits due to the termination of a contract or agreement, policy, or plan,
 the organization that terminates the contract or agreement, the issuer terminating the policy,
 or the administrator of the plan being terminated, respectively, shall notify the individual
 of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
 supplement policies under paragraph (a). The notice must be communicated
 contemporaneously with the notification of termination.
     (2) At the time of an event described in paragraph (b), because of which an individual
 ceases enrollment under a contract or agreement, policy, or plan, the organization that offers
 the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer
 offering the policy, or the administrator of the plan, respectively, shall notify the individual
 of the individual's rights under this subdivision, and of the obligations of issuers of Medicare
 supplement policies under paragraph (a). The notice must be communicated within ten
 working days of the issuer receiving notification of disenrollment.
     (g) Reference in this subdivision to a situation in which, or to a basis upon which, an
 individual's coverage has been terminated does not provide authority under the laws of this
 state for the termination in that situation or upon that basis.
     (h) An individual's rights under this subdivision are in addition to, and do not modify
 or limit, the individual's rights under subdivision 1h.
     EFFECTIVE DATE. This section is effective August 1, 2026.
Article 5 Sec. 6.  62
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
    Sec. 7. Minnesota Statutes 2024, section 62A.31, subdivision 4, is amended to read:
      Subd. 4. Prohibited policy provisions. (a) A Medicare supplement policy or certificate
  in force in the state shall not contain benefits that duplicate benefits provided by Medicare
  or contain exclusions on coverage that are more restrictive than those of Medicare.
  Duplication of benefits is permitted to the extent permitted under subdivision 1s, paragraph
  (a), for benefits provided by Medicare Part D.
      (b) No Medicare supplement policy or certificate may use waivers to exclude, limit, or
  reduce coverage or benefits for specifically named or described preexisting diseases or
  physical conditions, except as permitted under subdivision 1h.
     EFFECTIVE DATE. This section is effective August 1, 2026.
   Sec. 8. Minnesota Statutes 2024, section 62A.44, subdivision 2, is amended to read:
     Subd. 2. Questions. (a) Application forms shall include the following questions designed
 to elicit information as to whether, as of the date of the application, the applicant has another
 Medicare supplement or other health insurance policy or certificate in force or whether a
 Medicare supplement policy or certificate is intended to replace any other accident and
 sickness policy or certificate presently in force. A supplementary application or other form
 to be signed by the applicant and agent containing the questions and statements may be
 used.
     "(1) You do not need more than one Medicare supplement policy or certificate.
     (2) If you purchase this policy, you may want to evaluate your existing health coverage
     and decide if you need multiple coverages.
     (3) You may be eligible for benefits under Medicaid and may not need a Medicare
     supplement policy or certificate.
     (4) The benefits and premiums under your Medicare supplement policy or certificate
     can be suspended, if requested, during your entitlement to benefits under Medicaid for
     24 months. You must request this suspension within 90 days of becoming eligible for
     Medicaid. If you are no longer entitled to Medicaid, your policy or certificate will be
     reinstated if requested within 90 days of losing Medicaid eligibility.
     (5) Counseling services may be available in Minnesota to provide advice concerning
     medical assistance through state Medicaid, Qualified Medicare Beneficiaries (QMBs),
     and Specified Low-Income Medicare Beneficiaries (SLMBs).
     To the best of your knowledge:
Article 5 Sec. 8.  63
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (1) Do you have another Medicare supplement policy or certificate in force?
      (a) If so, with which company?
      (b) If so, do you intend to replace your current Medicare supplement policy with this
  policy or certificate?
      (2) Do you have any other health insurance policies that provide benefits which this
      Medicare supplement policy or certificate would duplicate?
      (a) If so, please name the company.
      (b) What kind of policy?
      (3) Are you covered for medical assistance through the state Medicaid program? If so,
     which of the following programs provides coverage for you?
     (a) Specified Low-Income Medicare Beneficiary (SLMB),
     (b) Qualified Medicare Beneficiary (QMB), or
     (c) full Medicaid Beneficiary?"
     (b) Agents shall list any other health insurance policies they have sold to the applicant.
     (1) List policies sold that are still in force.
     (2) List policies sold in the past five years that are no longer in force.
     (c) In the case of a direct response issuer, a copy of the application or supplemental
 form, signed by the applicant, and acknowledged by the insurer, shall be returned to the
 applicant by the insurer on delivery of the policy or certificate.
     (d) Upon determining that a sale will involve replacement of Medicare supplement
 coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the
 applicant, before issuance or delivery of the Medicare supplement policy or certificate, a
 notice regarding replacement of Medicare supplement coverage. One copy of the notice
 signed by the applicant and the agent, except where the coverage is sold without an agent,
 shall be provided to the applicant and an additional signed copy shall be retained by the
 issuer. A direct response issuer shall deliver to the applicant at the time of the issuance of
 the policy or certificate the notice regarding replacement of Medicare supplement coverage.
     (e) The notice required by paragraph (d) for an issuer shall be provided in substantially
 the following form in no less than 12-point type:
"NOTICE TO APPLICANT REGARDING REPLACEMENT
OF MEDICARE SUPPLEMENT INSURANCE
Article 5 Sec. 8.  64
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(Insurance company's name and address)
SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
      According to (your application) (information you have furnished), you intend to terminate
  existing Medicare supplement insurance and replace it with a policy or certificate to be
  issued by (Company Name) Insurance Company. Your new policy or certificate will provide
  30 days within which you may decide without cost whether you desire to keep the policy
  or certificate.
      You should review this new coverage carefully. Compare it with all accident and sickness
  coverage you now have. If, after due consideration, you find that purchase of this Medicare
 supplement coverage is a wise decision you should terminate your present Medicare
 supplement policy. You should evaluate the need for other accident and sickness coverage
 you have that may duplicate this policy.
     STATEMENT TO APPLICANT BY ISSUER, AGENT, (BROKER OR OTHER
     REPRESENTATIVE): I have reviewed your current medical or health insurance
     coverage. To the best of my knowledge this Medicare supplement policy will not duplicate
     your existing Medicare supplement policy because you intend to terminate the existing
     Medicare supplement policy. The replacement policy or certificate is being purchased
     for the following reason(s) (check one):
................ Additional benefits
................ No change in benefits, but lower premiums
................ Fewer benefits and lower premiums
................ Other (please specify)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
     (1) Health conditions which you may presently have (preexisting conditions) may not
     be immediately or fully covered under the new policy or certificate. This could result
     in denial or delay of a claim for benefits under the new policy or certificate, whereas a
     similar claim might have been payable under your present policy or certificate.
     (2) State law provides that your replacement policy or certificate may not contain new
     preexisting conditions, waiting periods, elimination periods, or probationary periods.
     The insurer will waive any time periods applicable to preexisting conditions, waiting
     periods, elimination periods, or probationary periods in the new policy (or coverage)
Article 5 Sec. 8.  65
06/05/25  REVISOR  RSI/AD  25-05685   as introduced
      for similar benefits to the extent the time was spent (depleted) under the original policy
      or certificate.
      (3) If you still wish to terminate your present policy or certificate and replace it with
      new coverage, be certain to truthfully and completely answer all questions on the
      application concerning your medical and health history. Failure to include all material
      medical information on an application may provide a basis for the company to deny any
      future claims and to refund your premium as though your policy or certificate had never
      been in force. After the application has been completed and before you sign it, review
      it carefully to be certain that all information has been properly recorded. (If the policy
     or certificate is guaranteed issue, this paragraph need not appear.)
     Do not cancel your present policy or certificate until you have received your new policy
     or certificate and you are sure that you want to keep it.
.........................................................................................
(Signature of Agent, Broker, or Other Representative)*
.........................................................................................
(Typed Name and Address of Issuer, Agent, or Broker)
.........................................................................................
(Date)
.........................................................................................
(Applicant's Signature)
.........................................................................................
(Date)
     *Signature not required for direct response sales."
     (f) Paragraph (e), clauses (1) and (2), of the replacement notice (applicable to preexisting
 conditions) may be deleted by an issuer if the replacement does not involve application of
 a new preexisting condition limitation.
     EFFECTIVE DATE. This section is effective August 1, 2026.
   Sec. 9. REPEALER.
     Laws 2023, chapter 57, article 2, sections 13, as amended by Laws 2024, chapter 114,
 article 6, section 7; and 66, as amended by Laws 2025, chapter 20, section 290, are repealed.
     EFFECTIVE DATE. This section is effective August 1, 2026.
Article 5 Sec. 9.  66
06/05/25  REVISOR      RSI/AD  25-05685  as introduced
ARTICLE 6
REINSURANCE
    Section 1. Minnesota Statutes 2024, section 60A.052, subdivision 1, is amended to read:
      Subdivision 1. Grounds. The commissioner may by order take any or all of the following
  actions: (a) deny, suspend, or revoke a certificate of authority; (b) censure the insurance
  company; (c) impose a civil penalty as provided for in section 45.027, subdivision 6; or (d)
  under a written agreement with the insurance company based upon the company's financial
  condition, impose conditions or restrictions on the insurance company's authority to transact
  business in Minnesota. In order to take this action the commissioner must find that the order
 is in the public interest, and the insurance company:
     (1) has a board of directors or principal management that is incompetent, untrustworthy,
 or so lacking in insurance company managerial experience as to make its operation hazardous
 to policyholders, its stockholders, or to the insurance buying public;
     (2) is controlled directly or indirectly through ownership, management, reinsurance
 transactions, or other business relations by any person or persons whose business operations
 are or have been marked by manipulation of any assets, reinsurance, or accounts as to create
 a hazard to the company's policyholders, stockholders, or the insurance buying public;
     (3) is in an unsound or unsafe condition;
     (4) has the actual liabilities that exceed the actual funds of the company;
     (5) has filed an application for a license which is incomplete in any material respect or
 contains any statement which, in light of the circumstances under which it was made,
 contained any misrepresentation or was false, misleading, or fraudulent;
     (6) has pled guilty, with or without explicitly admitting guilt, pled nolo contendere, or
 been convicted of a felony, gross misdemeanor, or misdemeanor involving moral turpitude,
 or similar conduct;
     (7) is permanently or temporarily enjoined by any court of competent jurisdiction from
 engaging in or continuing any conduct or practice involving any aspect of the insurance
 business;
     (8) has violated or failed to comply with any order of the insurance regulator of any
 other state or jurisdiction;
Article 6 Section 1.  67
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (9) has had a certificate of authority denied, suspended, or revoked, has been censured
  or reprimanded, has been the subject of any other discipline imposed by, or has paid or has
  been required to pay a monetary penalty or fine to, another state;
      (10) agents, officers, or directors refuse to submit to examination or perform any related
  legal obligation; or
      (11) has violated or failed to comply with, any of the provisions of the insurance laws
  including chapter 45 or chapters 60A to 72A or any rule or order under those chapters; or
      (12) has failed to pay the assessment imposed under section 62E.23, subdivision 1a.
    Sec. 2. Minnesota Statutes 2024, section 62E.21, is amended by adding a subdivision to
 read:
     Subd. 2a. Assessment. "Assessment" means the amount a group health carrier must pay
 to the association under section 62E.23, subdivision 1a.
   Sec. 3. Minnesota Statutes 2024, section 62E.21, is amended by adding a subdivision to
 read:
     Subd. 8a. Group health carrier. "Group health carrier" means any of the following that
 offer a group health plan, as defined in section 62A.011, subdivision 1c:
     (1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of
 accident and sickness insurance, as defined in section 62A.01;
     (2) a nonprofit health service plan corporation operating under chapter 62C; or
     (3) a health maintenance organization operating under chapter 62D.
   Sec. 4. Minnesota Statutes 2024, section 62E.23, is amended by adding a subdivision 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 notify each group health carrier of the carrier's
 assessment amount under paragraph (a). The association must determine each carrier's
 assessment amount, in consultation with the commissioner, based on the group health
Article 6 Sec. 4.  68
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  carrier's portion of the total premiums for group health plans written in Minnesota for benefit
  year 2027. The association must establish the assessment amount for each group health plan
  so that the aggregate assessment amount collected from group health plans under this
  subdivision equals the amount necessary for the appropriations and transfers under section
  62E.25, subdivision 1.
      (d) Subject to paragraph (e), each group health carrier must pay the assessment under
  paragraph (a) to the association by August 1, 2028. A group health plan must pay the
  assessment in the manner determined by the commissioner.
      (e) A group health carrier may apply to the commissioner to defer all or part of the
 assessment imposed under paragraph (a). The application must be submitted to the
 commissioner by May 15, 2028. The commissioner may defer all or part of the assessment
 if the commissioner determines the payment of the assessment places the group health
 carrier in a financially impaired condition. The commissioner may deny an application for
 deferral under this paragraph. No later than June 15, 2028, the commissioner must notify
 the association and the group health carrier whether the assessment deferral is approved or
 denied. If the commissioner approves the deferral request, the notice must include the amount
 of and due date for the deferred portion of the assessment. If all or part of the assessment
 is deferred, the association must include the amount deferred in the other group health
 carriers' assessments in a proportionate manner consistent with this subdivision. The group
 health carrier that receives a deferral is liable to the association for the amount deferred and
 is prohibited from receiving or becoming entitled to a reinsurance payment under the
 Minnesota premium security plan until the group health carrier has paid the deferred
 assessment.
     (f) If the association determines the assessment imposed under paragraph (a) exceeds
 or is less than the amount necessary to operate and administer the Minnesota premium
 security plan and issue reinsurance payments, the association must require group health
 carriers to pay an additional amount or the association must issue a refund to the group
 health carriers. The association must determine the accuracy of the assessment by May 30,
 2029.
     (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.
Article 6 Sec. 4.  69
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    Sec. 5. Minnesota Statutes 2024, section 62E.23, subdivision 2, is amended to read:
      Subd. 2. Payment parameters. (a) The board must design and adjust the payment
  parameters to ensure the payment parameters:
      (1) will stabilize or reduce premium rates in the individual market;
      (2) will increase participation in the individual market;
      (3) will improve access to health care providers and services for those in the individual
  market;
      (4) mitigate the impact high-risk individuals have on premium rates in the individual
  market;
     (5) take into account any federal funding available for the plan; and
     (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
     (6) (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.
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      (f) For purposes of paragraph (a), clause (7), the association must consult with the
  commissioner of management and budget and the board of directors of MNsure to determine
  the amount of funding necessary to ensure MNsure's stable operation.
    Sec. 6. Minnesota Statutes 2024, section 62E.23, subdivision 3, is amended to read:
      Subd. 3. Operation. (a) The board shall propose to the commissioner the payment
  parameters for the next benefit year by January 15 of the year before the applicable benefit
  year. The commissioner shall approve or reject the payment parameters no later than 14
  days following the board's proposal. If the commissioner fails to approve or reject the
  payment parameters within 14 days following the board's proposal, the proposed payment
 parameters are final and effective.
     (b) If the amount in the premium security plan account in section 62E.25, subdivision
 1, is not anticipated to be adequate to fully fund the approved payment parameters as of
 July 1 of the year before the applicable benefit year, the board, in consultation with the
 commissioner and the commissioner of management and budget, shall propose payment
 parameters within the available appropriations or, for benefit year 2027, assess group health
 carriers to obtain the necessary funding. The commissioner must permit an eligible health
 carrier to revise an applicable rate filing based on the final payment parameters for the next
 benefit year.
     (c) Notwithstanding paragraph (a), the payment parameters for benefit years 2023 through
 2027 are:
     (1) an attachment point of $50,000;
     (2) a coinsurance rate of 80 percent; and
     (3) a reinsurance cap of $250,000.
   Sec. 7. Minnesota Statutes 2024, section 62E.23, is amended by adding a subdivision to
 read:
     Subd. 5a. Group health carrier records; audit. (a) A group health carrier must maintain
 documents and records, whether paper, electronic, or in other media, sufficient to substantiate
 the amount assessed, paid, or deferred under subdivision 1a. The documents and records
 must be maintained for at least six years. A group health carrier must make documents and
 records maintained under this subdivision available to the commissioner upon the
 commissioner's request.
Article 6 Sec. 7.  71
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      (b) Effective January 1, 2028, the association may have a group health carrier audited
  to assess the carrier's compliance with this section. The group health carrier must ensure
  that the group health carrier's contractors, subcontractors, and agents cooperate with any
  audit under this paragraph.
    Sec. 8. Minnesota Statutes 2024, section 62E.24, subdivision 1, is amended to read:
      Subdivision 1. Accounting. The board must keep an accounting for each benefit year
  of all:
      (1) funds appropriated for reinsurance payments and administrative and operational
  expenses;
     (2) requests for reinsurance payments received from eligible health carriers;
     (3) for benefit year 2027, assessments collected and deferred under section 62E.23,
 subdivision 1a;
     (3) (4) reinsurance payments made to eligible health carriers; and
     (4) (5) administrative and operational expenses incurred for the plan.
   Sec. 9. Minnesota Statutes 2024, section 62E.24, subdivision 2, is amended to read:
     Subd. 2. Reports. (a) The board must submit to the commissioner and to the chairs and
 ranking minority members of the legislative committees with jurisdiction over commerce
 and health and make available to the public quarterly reports on plan operations and an
 annual report summarizing the plan operations for each benefit year. All reports must be
 made public by posting the report on the Minnesota Comprehensive Health Association
 website. The annual summary must be made available by November 1 of the year following
 the applicable benefit year or 60 calendar days following the final disbursement of
 reinsurance payments for the applicable benefit year, whichever is later.
     (b) The reports must include information about:
     (1) the reinsurance parameters used;
     (2) the metal levels affected;
     (3) the number of claims payments estimated and submitted for payment per products
 offered on-exchange and off-exchange and per eligible health carrier;
     (4) the estimated reinsurance payments by plan type based on carrier-submitted templates;
Article 6 Sec. 9.  72
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      (5) funds appropriated for reinsurance payments and administrative and operational
  expenses for each year, including: (i) the federal and state contributions received,; (ii)
  investment income,; (iii) for benefit year 2027, assessments collected under section 62E.23,
  subdivision 1a; and (iv) any other revenue or funds received;
      (6) the total amount of reinsurance payments made to each eligible health carrier; and
      (7) administrative and operational expenses incurred for the plan, including the total
  amount incurred and as a percentage of the plan's operational budget.
    Sec. 10. Minnesota Statutes 2024, section 62E.25, subdivision 1, is amended to read:
      Subdivision 1. Premium security plan account. (a) The premium security plan account
 is created in the special revenue fund of the state treasury.
     (b) Funds in the account are appropriated annually to the commissioner of commerce
 for grants to the Minnesota Comprehensive Health Association for the operational and
 administrative costs and reinsurance payments relating to the start-up and operation of the
 Minnesota premium security plan. Notwithstanding section 11A.20, all investment income
 and all investment losses attributable to the investment of the premium security plan account
 shall be credited to the premium security plan account.
     (c) The commissioner of commerce must annually transfer the amount determined by
 the association under section 62E.23, subdivision 2, paragraph (a), clause (7), from the
 premium security plan account to the MNsure account established in section 62V.07.
     (d) Federal funds received for the Minnesota premium security plan must not be used
 for the transfer under paragraph (c).
     EFFECTIVE DATE. This section is effective January 1, 2026.
   Sec. 11. Minnesota Statutes 2024, section 62V.06, subdivision 5, is amended to read:
     Subd. 5. Data sharing. (a) MNsure may share or disseminate data classified as private
 or nonpublic in subdivision 3 as follows:
     (1) to the subject of the data, as provided in section 13.04;
     (2) according to a court order;
     (3) according to a state or federal law specifically authorizing access to the data;
     (4) with other state or federal agencies, only to the extent necessary to verify the identity
 of, determine the eligibility of, process premiums for, process enrollment of, or investigate
Article 6 Sec. 11.  73
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  fraud related to an individual, employer, or employee participating in MNsure, provided
  that MNsure must enter into a data-sharing agreement with the agency prior to sharing data
  under this clause; and
(5) with a nongovernmental person or entity, only to the extent necessary to verify the
  identity of, determine the eligibility of, process premiums for, process enrollment of, or
  investigate fraud related to an individual, employer, or employee participating in MNsure,
  provided that MNsure must enter into a contract with the person or entity, as provided in
  section 13.05, subdivision 6 or 11, prior to disseminating data under this clause.; and
(6) with the Department of Revenue, as necessary, to implement the reinsurance credit
 under section 297I.20.
(b) MNsure may share or disseminate data classified as private or nonpublic in subdivision
 4 as follows:
(1) to the subject of the data, as provided in section 13.04;
(2) according to a court order;
(3) according to a state or federal law specifically authorizing access to the data;
(4) with other state or federal agencies, only to the extent necessary to carry out the
 functions of MNsure, provided that MNsure must enter into a data-sharing agreement with
 the agency prior to sharing data under this clause; and
(5) with a nongovernmental person or entity, only to the extent necessary to carry out
 the functions of MNsure, provided that MNsure must enter a contract with the person or
 entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating data under
 this clause.
(c) Sharing or disseminating data outside of MNsure in a manner not authorized by this
 subdivision is prohibited. The list of authorized dissemination and sharing contained in this
 subdivision must be included in the Tennessen warning required by section 13.04, subdivision
 2.
(d) Until July 1, 2014, state agencies must share data classified as private or nonpublic
 on individuals, employees, or employers participating in MNsure with MNsure, only to the
 extent such data are necessary to verify the identity of, determine the eligibility of, process
 premiums for, process enrollment of, or investigate fraud related to a MNsure participant.
 The agency must enter into a data-sharing agreement with MNsure prior to sharing any data
 under this paragraph.
Article 6 Sec. 11.  74
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      EFFECTIVE DATE. This section is effective January 1, 2029.
    Sec. 12. Minnesota Statutes 2024, section 297I.20, is amended by adding a subdivision
  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 insurance company. An amount
  sufficient to pay the refunds under this section is appropriated to the commissioner from
 the general fund. The credit under this subdivision does not affect the calculation of fire
 state aid under section 477B.03 and police state aid under section 477C.03. The commissioner
 of commerce must annually provide to the commissioner a list of assessments paid by
 taxpayers under section 62E.23 by March 1 of the calendar year following the assessment.
     EFFECTIVE DATE. This section is effective for taxable years beginning after December
 31, 2028.
   Sec. 13. Minnesota Statutes 2024, section 297I.40, is amended by adding a subdivision
 to read:
     Subd. 2a. Special provision; reinsurance credit. The credit allowed under section
 297I.20, subdivision 7, is not allowed for purposes of determining the amount of the required
 March and June installments in calendar year 2029. For the September and December
 required installments in calendar year 2029 and for all installments thereafter, the installments
 may be reduced, but not to an amount less than zero, by the entire amount of the credit
 allowed. A taxpayer may claim a refund of the amount of credit allowed under section
 297I.20, subdivision 7, remaining after the December required installment. The credit must
 be claimed in the form and manner prescribed by the commissioner.
     EFFECTIVE DATE. This section is effective for taxable years beginning after December
 31, 2028.
   Sec. 14. PREMIUM SECURITY PLAN ACCOUNT; TRANSFER.
     (a) The commissioner of management and budget must transfer $145,000,000 in fiscal
 year 2026 from the health care access fund under Minnesota Statutes, section 16A.724,
 subdivision 1, to the premium security plan account under Minnesota Statutes, section
 62E.25, subdivision 1. This is a onetime transfer.
Article 6 Sec. 14.  75
06/05/25  REVISOR        RSI/AD  25-05685  as introduced
(b) Money transferred under paragraph (a) that remains unspent by August 31, 2027,
  cancels to the health care access fund under Minnesota Statutes, section 16A.724, subdivision
  1.
    Sec. 15. TRANSFER FOR REINSURANCE CREDIT.
Subdivision 1. Notice of credit amount. By June 1, 2030, the commissioner of revenue
  must notify the commissioner of management and budget of the amount of the credit under
  section 297I.20, subdivision 7, attributable to the tax imposed under section 297I.05,
  subdivision 5.
Subd. 2. Transfer. By June 30, 2030, the commissioner of management and budget
 must transfer the amount established under subdivision 1 from the general fund to the health
 care access fund. This is a onetime transfer.
EFFECTIVE DATE. This section is effective the day following final enactment.
ARTICLE 7
COMMERCE AND CONSUMER PROTECTION POLICY
   Section 1. Minnesota Statutes 2024, section 41A.09, subdivision 2a, is amended to read:
Subd. 2a. Definitions. For the purposes of this section, the terms defined in this
 subdivision have the meanings given them.
(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
 including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other
 renewable resources, including residue and waste generated from the production, processing,
 and marketing of agricultural products, forest products, and other renewable resources, that:
(1) meets all of the specifications in ASTM specification D4806-04a D4806-21a; 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
Article 7 Section 1.  76
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  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. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.
      Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
  subdivision have the meanings given.
      (b) "Association" means an association of apartment owners, as defined in section 515.02,
  subdivision 5, an association, as defined in section 515A.1-103, clause (3), and association
  as defined in section 515B.1-103, clause (4).
      (c) "Common interest community" has the meaning given in section 515B.1-103, clause
 (10).
     (d) "Governing documents" means a common interest community's declaration, articles
 of incorporation, bylaws, and any amendments to a common interest community's declaration,
 articles of incorporation, or bylaws.
     (e) "Unit owner" means an apartment owner, as defined in section 515.02, subdivision
 3, a unit owner under section 515A.1-103, clause (20), and a unit owner, as defined in
 section 515B.1-103, clause (37).
     Subd. 2. Establishment. (a) A common interest community ombudsperson position is
 established within the Department of Commerce to:
     (1) assist unit owners, unit owners' tenants, and associations in understanding the rights
 each possesses under chapter 515B and the applicable governing documents; and
     (2) facilitate the resolution of disputes between unit owners and associations.
     (b) The ombudsperson is appointed by the commissioner and serves in the unclassified
 service.
     Subd. 3. Qualifications. The ombudsperson must be selected without regard to political
 affiliation, must be qualified and experienced to perform the duties of the office, and must
 be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner,
 be employed by a business entity that provides management or consulting services to an
 association, or otherwise be affiliated with an association or management company. A
 person is prohibited from serving as ombudsperson while holding another public office.
     Subd. 4. Duties. (a) The ombudsperson must execute the duties under subdivision 2,
 paragraph (a), by taking the following actions:
Article 7 Sec. 2.  77
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (1) creating plain language explanations of common provisions in governing documents;
  and
      (2) identifying and providing resources and referrals related to the rights and
  responsibilities of unit owners and associations.
      (b) Upon the request of a unit owner or an association, the ombudsperson may provide
  informal mediation services in disputes concerning chapter 515B and governing documents,
  except where:
      (1) a complaint based on the same dispute is pending in a judicial or administrative
  proceeding;
     (2) the same disputed issue has been addressed or is currently in arbitration, mediation,
 or another alternative dispute resolution process; or
     (3) the association notifies the ombudsperson that an order under section 609.748 is in
 effect against the unit owner.
     (c) The ombudsperson must compile and analyze complaints received to identify issues
 and trends.
     (d) The ombudsperson must maintain a website containing, at a minimum:
     (1) the text of chapter 515B and any other relevant statutes or rules;
     (2) a plain language explanation of common provisions of governing documents;
     (3) information regarding the services provided by the common interest community
 ombudsperson, including assistance with dispute resolution;
     (4) information and referrals regarding alternative dispute resolution methods and
 programs, and resources regarding the rights and responsibilities of unit owners and
 associations; and
     (5) any other information that the ombudsperson determines is useful to unit owners,
 their tenants, associations, and common interest community property management companies.
     (e) When requested or as the ombudsperson deems necessary, the ombudsperson must
 provide reports and recommendations to the legislative committees with jurisdiction over
 common interest communities.
     Subd. 5. Powers limited. The ombudsperson and the commissioner are prohibited from
 providing legal advice regarding a dispute between a unit owner and an association. The
 ombudsperson and commissioner are prohibited from making a formal determination or
Article 7 Sec. 2.  78
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  issuing an order regarding disputes between a unit owner and an association. Nothing in
  this paragraph limits the ability of the commissioner to execute duties or powers under any
  other law.
      Subd. 6. Cooperation. Upon request, unit owners and associations may participate in
  the dispute resolution process under this section and make good faith efforts to resolve
  disputes.
      Subd. 7. Data. Data identifying a unit owner, an association, a unit owner's tenant, or a
  common interest community that are collected, created, or maintained by the office of the
  ombudsperson under this section are private data on individuals or nonpublic data.
     Subd. 8. Landlord and tenant law. Nothing in this section modifies, supersedes, limits,
 or expands the rights and duties of landlords and tenants established under chapter 504B or
 any other law.
   Sec. 3. Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:
     Subdivision 1. General powers. (a) In connection with the duties and responsibilities
 entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
 of commerce may:
     (1) make public or private investigations within or without this state as the commissioner
 considers necessary to determine whether any person has violated or is about to violate any
 law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
     (2) require or permit any person to file a statement in writing, under oath or otherwise
 as the commissioner determines, as to all the facts and circumstances concerning the matter
 being investigated;
     (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
 duties and responsibilities entrusted to the commissioner;
     (4) conduct investigations and hold hearings for the purpose of compiling information
 related to the duties and responsibilities entrusted to the commissioner;
     (5) examine the books, accounts, records, and files of every licensee, and of every person
 who is engaged in any activity regulated; the commissioner or a designated representative
 shall have free access during normal business hours to the offices and places of business of
 the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
 in the place of business;
     (6) publish information which is contained in any order issued by the commissioner;
Article 7 Sec. 3.  79
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (7) require any person subject to duties and responsibilities entrusted to the commissioner,
  to report all sales or transactions that are regulated. The reports must be made within ten
  days after the commissioner has ordered the report. The report is accessible only to the
  respondent and other governmental agencies unless otherwise ordered by a court of competent
  jurisdiction; and
      (8) assess a natural person or entity subject to the jurisdiction of the commissioner the
  necessary expenses of the investigation performed by the department when an investigation
  is made by order of the commissioner. The cost of the investigation shall be determined by
  the commissioner and is based on the salary cost of investigators or assistants and at an
 average rate per day or fraction thereof so as to provide for the total cost of the investigation.
 All money collected must be deposited into the general fund. A natural person or entity
 licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
 investigation results in no finding of a violation. This clause does not apply to a natural
 person or entity already subject to the assessment provisions of sections 60A.03 and
 60A.031.; and
     (9) issue data calls.
     (b) For purposes of this section, "data call" means a written request from the
 commissioner to two or more natural persons or entities subject to the commissioner's
 jurisdiction to provide data or other information within a reasonable time period
 commensurate with the volume and nature of the data required to be collected in the data
 call for a specific, targeted regulatory oversight purpose. A data call is not market analysis,
 as defined under section 60A.031, subdivision 4, paragraph (f), and is not subject to section
 60A.033.
   Sec. 4. Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
 read:
     Subd. 1b. Data calls. (a) Information provided in response to a data call issued by the
 commissioner: (1) must be treated as nonpublic data, as defined under section 13.02,
 subdivision 9; and (2) is not subject to subpoena. If the commissioner performs a data call,
 the commissioner may make the results available for public inspection in an aggregated
 format and in a manner that does not disclose the identity of a specific natural person or
 entity, including the name of any natural person or entity who responded to the data call.
 Prior to making the aggregated results of a data call available for public inspection, the
 commissioner must provide all natural persons and entities that responded to the data call
 15 days' notice of the information to be publicly released. Nothing in this subdivision requires
Article 7 Sec. 4.  80
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  the commissioner to publicly release aggregated results from a data call. The results of a
  data call that requests data for the National Association of Insurance Commissioners' Market
  Conduct Annual Statement is subject to confidential treatment under section 60A.031,
  subdivision 4, paragraph (f).
      (b) The commissioner may grant access to data submitted by insurers in response to a
  data call issued by the commissioner with other state, federal, and international regulatory
  agencies; with the National Association of Insurance Commissioners and its affiliates and
  subsidiaries; and with state, federal, and international law enforcement authorities if the
  recipient agrees in writing to maintain the data as nonpublic data and has the legal authority
 to maintain the data as nonpublic data.
   Sec. 5. Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:
     Subd. 2. Power to compel production of evidence. For the purpose of any investigation,
 hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
 commissioner, the commissioner or a designated representative may issue data calls,
 administer oaths and affirmations, subpoena witnesses, compel their attendance, take
 evidence, and require the production of books, papers, correspondence, memoranda,
 agreements, or other documents or records that the commissioner considers relevant or
 material to the inquiry.
     A subpoena issued pursuant to this subdivision must state that the person to whom the
 subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
 the requested records have been given to law enforcement personnel except:
     (1) insofar as the disclosure is necessary to find and disclose the records; or
     (2) pursuant to court order.
   Sec. 6. Minnesota Statutes 2024, section 45.24, is amended to read:
     45.24 LICENSE TECHNOLOGY FEES.
     (a) The commissioner may establish and maintain an electronic licensing database system
 for license origination, renewal, and tracking the completion of continuing education
 requirements by individual licensees who have continuing education requirements, and
 other related purposes.
     (b) The commissioner shall pay for the cost of operating and maintaining the electronic
 database system described in paragraph (a) through a technology surcharge imposed upon
Article 7 Sec. 6.  81
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  the fee for license origination and renewal, for individual licenses that require continuing
  education.
      (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
  licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
  time of license origination and renewal.
      (d) The Commerce Department technology account is hereby created as an account in
  the special revenue fund.
      (e) The commissioner shall deposit the surcharge permitted under this section in the
  account created in paragraph (d), and funds in the account are appropriated to the
 commissioner in the amounts needed for purposes of this section. The commissioner of
 management and budget shall transfer an amount determined by the commissioner of
 commerce from the account to the statewide electronic licensing system account under
 section 16E.22 for the costs of the statewide licensing system attributable to the inclusion
 of licenses subject to this section.
     (f) The commissioner shall may temporarily reduce or suspend the surcharge as necessary
 if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
 June in any calendar year and shall must annually review the anticipated costs under
 paragraph (b) to determine the amount to increase or decrease the surcharge as necessary
 to keep the fund balance at an adequate level but not in excess of $2,000,000.
   Sec. 7. Minnesota Statutes 2024, section 80A.58, is amended to read:
     80A.58 SECTION 403; INVESTMENT ADVISER REGISTRATION
 REQUIREMENT AND EXEMPTIONS.
     (a) Registration requirement. It is unlawful for a person to transact business in this
 state as an investment adviser or investment adviser representative unless the person is
 registered under this chapter or is exempt from registration under subsection (b).
     (b) Exemptions from registration. The following persons are exempt from the
 registration requirement of subsection (a):
     (1) any person whose only clients in this state are:
     (A) federal covered investment advisers, investment advisers registered under this
 chapter, or broker-dealers registered under this chapter;
Article 7 Sec. 7.  82
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      (B) bona fide preexisting clients whose principal places of residence are not in this state
  if the investment adviser is registered under the securities act of the state in which the clients
  maintain principal places of residence; or
      (C) any other client exempted by rule adopted or order issued under this chapter;
      (2) a person without a place of business in this state if the person has had, during the
  preceding 12 months, not more than five clients that are resident in this state in addition to
  those specified under paragraph (1);
      (3) A private fund advisor adviser, subject to the additional requirements of subsection
  (c), if the private fund adviser satisfies each of the following conditions:
     (i) neither the private fund adviser nor any of its advisory affiliates are subject to a
 disqualification as described in Rule 262 of SEC Regulation A, Code of Federal Regulations,
 title 17, section 230.262;
     (ii) the private fund adviser files with the state each report and amendment thereto that
 an exempt reporting adviser is required to file with the Securities and Exchange Commission
 pursuant to SEC Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4; or
 and
     (iii) the private fund adviser pays the fees under section 80A.65, subdivision 2b; or
     (4) any other person exempted by rule adopted or order issued under this chapter.
     (c) Additional requirements for private fund advisers to certain 3(c)(1) funds. In
 order to qualify for the exemption described in subsection (b)(3), a private fund adviser
 who advises at least one 3(c)(1) fund that is not a venture capital fund shall, in addition to
 satisfying each of the conditions specified in subsection (b)(3), comply with the following
 requirements:
     (1) The private fund adviser shall advise only those 3(c)(1) funds, other than venture
 capital funds, whose outstanding securities, other than short-term paper, are beneficially
 owned entirely by persons who, after deducting the value of the primary residence from the
 person's net worth, would each meet the definition of a qualified client in SEC Rule 205-3,
 Code of Federal Regulations, title 17, section 275.205-3, at the time the securities are
 purchased from the issuer;
     (2) At the time of purchase, the private fund adviser shall disclose the following in
 writing to each beneficial owner of a 3(c)(1) fund that is not a venture capital fund:
     (i) all services, if any, to be provided to individual beneficial owners;
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      (ii) all duties, if any, the investment adviser owes to the beneficial owners; and
      (iii) any other material information affecting the rights or responsibilities of the beneficial
  owners; and
      (3) The private fund adviser shall obtain on an annual basis audited financial statements
  of each 3(c)(1) fund that is not a venture capital fund and shall deliver a copy of such audited
  financial statements to each beneficial owner of the fund.
      (d) Federal covered investment advisers. If a private fund adviser is registered with
  the Securities and Exchange Commission, the adviser shall not be eligible for the private
  fund adviser exemption under paragraph (b), clause (3), and shall comply with the state
 notice filing requirements applicable to federal covered investment advisers in section
 80A.58.
     (e) Investment adviser representatives. A person is exempt from the registration
 requirements of section 80A.58, paragraph (a), if he or she is employed by or associated
 with an investment adviser that is exempt from registration in this state pursuant to the
 private fund adviser exemption under paragraph (b), clause (3), and does not otherwise
 engage in activities that would require registration as an investment adviser representative.
     (f) Electronic filings. The report filings described in subsection (b)(3)(ii) shall be made
 electronically through the IARD. A report shall be deemed filed when the report and the
 fee required by sections 80A.60 and 80A.65 are filed and accepted by the IARD on the
 state's behalf.
     (g) Transition. An investment adviser who becomes ineligible for the exemption provided
 by this section must comply with all applicable laws and rules requiring registration or
 notice filing within 90 days from the date of the investment adviser's eligibility for this
 exemption ceases.
     (h) Grandfathering for investment advisers to 3(c)(1) funds with nonqualified
 clients. An investment adviser to a 3(c)(1) fund (other than a venture capital fund) that has
 one or more beneficial owners who are not qualified clients as described in paragraph (c),
 clause (1), is eligible for the exemption contained in paragraph (b), clause (3), if the following
 conditions are satisfied:
     (1) the subject fund existed prior to August 1, 2013;
     (2) as of August 1, 2013, the subject fund ceases to accept beneficial owners who are
 not qualified clients, as described in paragraph (c), clause (1);
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      (3) the investment adviser discloses in writing the information described in paragraph
  (c), clause (2), to all beneficial owners of the fund; and
      (4) as of August 1, 2013, the investment adviser delivers audited financial statements
  as required by paragraph (c), clause (3).
      (i) Limits on employment or association. It is unlawful for an investment adviser,
  directly or indirectly, to employ or associate with an individual to engage in an activity
  related to investment advice in this state if the registration of the individual is suspended
  or revoked or the individual is barred from employment or association with an investment
  adviser, federal covered investment adviser, or broker-dealer by an order under this chapter,
 the Securities and Exchange Commission, or a self-regulatory organization, unless the
 investment adviser did not know, and in the exercise of reasonable care could not have
 known, of the suspension, revocation, or bar. Upon request from the investment adviser and
 for good cause, the administrator, by order, may waive, in whole or in part, the application
 of the prohibitions of this subsection to the investment adviser.
   Sec. 8. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:
     Subd. 2. Registration application and renewal filing fee. Every applicant for an initial
 or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in
 the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an
 investment adviser representative. When an application is denied or withdrawn, the filing
 fee shall be retained. A registered agent who has terminated employment with one
 broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
 fee of $25 $65. A registered investment adviser representative who has terminated
 employment with one investment adviser must, before beginning employment with another
 investment adviser, pay a $50 transfer fee.
   Sec. 9. Minnesota Statutes 2024, section 80A.65, is amended by adding a subdivision to
 read:
     Subd. 2b. Private fund adviser filings. A private fund adviser must pay a $100 filing
 fee when filing an initial or renewal notice required under section 80A.58.
   Sec. 10. Minnesota Statutes 2024, section 80A.66, is amended to read:
     80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
     (a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
 of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
Article 7 Sec. 10.  85
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  (15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
  minimum financial requirements for broker-dealers registered or required to be registered
  under this chapter and investment advisers registered or required to be registered under this
  chapter.
      (b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
  (15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
  U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
  chapter and an investment adviser registered or required to be registered under this chapter
  shall file such financial reports as are required by a rule adopted or order issued under this
 chapter. If the information contained in a record filed under this subsection is or becomes
 inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
 amendment.
     (c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
 U.S.C. Section 80b-22):
     (1) a broker-dealer registered or required to be registered under this chapter and an
 investment adviser registered or required to be registered under this chapter shall make and
 maintain the accounts, correspondence, memoranda, papers, books, and other records
 required by rule adopted or order issued under this chapter;
     (2) broker-dealer records required to be maintained under paragraph (1) may be
 maintained in any form of data storage acceptable under Section 17(a) of the Securities
 Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
 administrator; and
     (3) investment adviser records required to be maintained under paragraph (d)(1) may
 be maintained in any form of data storage required by rule adopted or order issued under
 this chapter.
     (d) Records and reports of private funds.
     (1) In general. An investment adviser to a private fund shall maintain such records of,
 and file with the administrator such reports and amendments thereto, that an exempt reporting
 adviser is required to file with the Securities and Exchange Commission pursuant to SEC
 Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
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      (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
Article 7 Sec. 10.  87
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  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
Article 7 Sec. 10.  88
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  by a self-regulatory organization, the North American Securities Administrators Association,
  or the commissioner.
    Sec. 11. Minnesota Statutes 2024, section 80E.12, is amended to read:
      80E.12 UNLAWFUL ACTS BY MANUFACTURERS, DISTRIBUTORS, OR
  FACTORY BRANCHES.
      It shall be unlawful for any manufacturer, distributor, or factory branch to require a new
  motor vehicle dealer to do any of the following:
      (a) order or accept delivery of any new motor vehicle, part or accessory thereof,
  equipment, or any other commodity not required by law which has not been voluntarily
 ordered by the new motor vehicle dealer, provided that this paragraph does not modify or
 supersede reasonable provisions of the franchise requiring the dealer to market a
 representative line of the new motor vehicles the manufacturer or distributor is publicly
 advertising;
     (b) order or accept delivery of any new motor vehicle, part or accessory thereof,
 equipment, or any other commodity not required by law in order for the dealer to obtain
 delivery of any other motor vehicle ordered by the dealer;
     (c) order or accept delivery of any new motor vehicle with special features, accessories,
 or equipment not included in the list price of the motor vehicles as publicly advertised by
 the manufacturer or distributor;
     (d) participate monetarily in an advertising campaign or contest, or to purchase any
 promotional materials, showroom, or other display decorations or materials at the expense
 of the new motor vehicle dealer;
     (e) enter into any agreement with the manufacturer or to do any other act prejudicial to
 the new motor vehicle dealer by threatening to cancel a franchise or any contractual
 agreement existing between the dealer and the manufacturer. Notice in good faith to any
 dealer of the dealer's violation of any terms of the franchise agreement shall not constitute
 a violation of sections 80E.01 to 80E.17;
     (f) change the capital structure of the new motor vehicle dealer or the means by or
 through which the dealer finances the operation of the dealership; provided, that the new
 motor vehicle dealer at all times meets any reasonable capital standards agreed to by the
 dealer; and also provided, that no change in the capital structure shall cause a change in the
 principal management or have the effect of a sale of the franchise without the consent of
 the manufacturer or distributor as provided in section 80E.13, paragraph (j);
Article 7 Sec. 11.  89
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (g) prevent or attempt to prevent, by contract or otherwise, any motor vehicle dealer
  from changing the executive management control of the new motor vehicle dealer unless
  the franchisor proves that the change of executive management will result in executive
  management control by a person who is not of good moral character or who does not meet
  the franchisor's existing reasonable capital standards and, with consideration given to the
  volume of sales and services of the new motor vehicle dealer, uniformly applied minimum
  business experience standards in the market area; provided, that where the manufacturer,
  distributor, or factory branch rejects a proposed change in executive management control,
  the manufacturer, distributor, or factory branch shall give written notice of its reasons to
 the dealer;
     (h) refrain from participation in the management of, investment in, or the acquisition
 of, any other line of new motor vehicle or related products or establishment of another make
 or line of new motor vehicles in the same dealership facilities as those of the manufacturer;
 provided, however, that this clause does not apply unless the new motor vehicle dealer
 maintains a reasonable line of credit for each make or line of new motor vehicle, and that
 the new motor vehicle dealer remains in substantial compliance with the terms and conditions
 of the franchise and with any reasonable facilities requirements of the manufacturer and
 that the acquisition or addition is not unreasonable in light of all existing circumstances;
 provided further that if a manufacturer determines to deny a dealer's request for a change
 described in this paragraph, such denial must be in writing, must offer an analysis of the
 grounds for the denial addressing the criteria contained in this paragraph, and must be
 delivered to the new motor vehicle dealer within 60 days after the manufacturer receives
 the completed application or documents customarily used by the manufacturer for dealer
 actions described in this paragraph. If a denial that meets the requirements of this paragraph
 is not sent within this period, the manufacturer shall be deemed to have given its consent
 to the proposed change.
 For purposes of this section and sections 80E.07, subdivision 1, paragraph (c), and 80E.14,
 subdivision 4, reasonable facilities requirements shall not include a requirement that a dealer
 establish or maintain exclusive facilities for the manufacturer of a line make unless
 determined to be reasonable in light of all existing circumstances or the dealer and the
 manufacturer voluntarily agree to such a requirement and separate and adequate consideration
 was offered and accepted;
     (i) during the course of the agreement, change the location of the new motor vehicle
 dealership or make any substantial alterations to the dealership premises during the course
 of the agreement, when to do so would be unreasonable or if the manufacturer fails to
Article 7 Sec. 11.  90
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  provide the dealer 180 days' prior written notice of a required change in location or substantial
  premises alteration; or
      (j) prospectively assent to a release, assignment, novation, waiver, or estoppel whereby
  a dealer relinquishes any rights under sections 80E.01 to 80E.17, or which would relieve
  any person from liability imposed by sections 80E.01 to 80E.17 or to require any controversy
  between a new motor vehicle dealer and a manufacturer, distributor, or factory branch to
  be referred to any person or tribunal other than the duly constituted courts of this state or
  the United States, if the referral would be binding upon the new motor vehicle dealer.; or
      (k) refrain from participation in an auto show described in section 168.27, subdivision
 10a.
     EFFECTIVE DATE. This section is effective the day following final enactment.
   Sec. 12. Minnesota Statutes 2024, section 82B.19, subdivision 5, is amended to read:
     Subd. 5. Out-of-state continuing education credit. (a) For purposes of this subdivision,
 the following terms have the meanings given:
     (1) "asynchronous educational offering" has the meaning given in the most recent version
 of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
 Qualifications Board; and
     (2) "synchronous educational offering" has the meaning given in the most recent version
 of the Real Property Appraiser Qualification Criteria, as established by the Appraiser
 Qualifications Board, and includes an educational process based on live or real-time
 instruction where there is no geographic separation of instructor and student.
     (b) Notwithstanding section 45.30, subdivisions 1 and 6, a real estate appraiser or course
 provider may submit, in a form prescribed by the commissioner, an application for continuing
 education credit for a synchronous educational offering that has not been submitted for prior
 approval in Minnesota. The commissioner must grant a real estate appraiser continuing
 education credit if:
     (1) the application is submitted on or before August 1 of the year in which the real estate
 appraiser license is due for renewal;
     (2) the synchronous educational offering has been approved for continuing education
 credit by the regulator of real estate appraisers in at least one other state or United States
 territory; and
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06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (3) an application is submitted by the real estate appraiser or course provider to the
  commissioner within 30 60 days of successful completion of the synchronous educational
  offering.
      (c) The application must include a certificate of successful completion from the
  synchronous educational offering provider. The commissioner must grant a real estate
  appraiser the same number of continuing education credits for the successful completion
  of the synchronous educational offering as was approved for the offering by the out-of-state
  real estate appraiser regulatory authority. The commissioner must grant a real estate appraiser
  continuing education credit within 60 days of the submission of the completed application
 for out-of-state continuing education credit.
     (d) The commissioner may charge a fee to a real estate appraiser, in an amount to be
 determined by the commissioner, to submit an application under this subdivision.
     (e) This subdivision does not apply to asynchronous educational offerings.
   Sec. 13. Minnesota Statutes 2024, section 168.27, is amended by adding a subdivision to
 read:
     Subd. 10a. Participation in auto shows. (a) A new motor vehicle dealer may participate
 in an auto show outside the county where the dealer maintains the dealer's licensed location
 to sell new vehicles without obtaining an additional license if:
     (1) the dealer participates in an auto show that takes place in a county other than the
 county where the dealer maintains a licensed location not more than four times during any
 calendar year;
     (2) the auto show is not held at a licensed location of any participating dealer;
     (3) the auto show is of a duration of no more than 12 consecutive days; and
     (4) the auto show expressly prohibits:
     (i) the sale or lease of vehicles at the show;
     (ii) labeling or marking vehicles as "For Sale" or "Sold";
     (iii) labeling or marking a vehicle with a price other than the manufacturer's retail price
 label;
     (iv) using printed posters, cards, and other printed materials that contain special dealership
 pricing; and
     (v) appraisal of trade-in vehicles and quoting a trade-in price for a particular vehicle.
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      (b) The auto show may permit:
      (1) exhibitor staff to distribute business cards, coupons, vehicle promotional materials,
  and factory-approved rebates;
      (2) exhibitor staff to make appointments for potential customers to visit the dealership,
  collect names of customer leads for later contact, and discuss the suggested retail price of
  a vehicle and the availability of particular lines of vehicles; and
      (3) test rides or test drives of new vehicles, but only under a program conducted by the
  auto show.
      EFFECTIVE DATE. This section is effective the day following final enactment.
   Sec. 14. Minnesota Statutes 2024, section 216B.40, is amended to read:
     216B.40 EXCLUSIVE SERVICE RIGHT; SERVICE EXTENSION.
     Except as provided in sections 216B.42 and, 216B.421, and 216B.422, each electric
 utility shall have the exclusive right to provide electric service at retail to each and every
 present and future customer in its assigned service area and no electric utility shall render
 or extend electric service at retail within the assigned service area of another electric utility
 unless the electric utility consents thereto in writing; provided that any electric utility may
 extend its facilities through the assigned service area of another electric utility if the extension
 is necessary to facilitate the electric utility connecting its facilities or customers within its
 own assigned service area.
   Sec. 15. [216B.422] ELECTRICITY SALES FOR CHARGING ELECTRIC
 VEHICLES.
     A retail seller of electricity used to recharge a battery that powers an electric vehicle, as
 defined in section 169.011, subdivision 26a, and that is not otherwise a public utility under
 this chapter, is not in violation of section 216B.40 if the electricity the retailer sells was
 provided by the utility serving the location of the charging station.
   Sec. 16. Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision
 to read:
     Subd. 9. Administrative costs for discontinuation of telecommunication services. The
 commission may assess fees for the actual commission costs to administer the discontinuation
 of telecommunication services under section 237.181. The money received from the
 assessment must be deposited into an account in the special revenue fund and all money
Article 7 Sec. 16.  93
06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  deposited is appropriated to the commission for the purposes specified under this subdivision.
  The commission may initially assess for estimated costs under section 237.181, then must
  adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
  made under this subdivision is not subject to the cap on assessments provided in subdivision
  3 or any other law.
      EFFECTIVE DATE. This section is effective July 1, 2026.
    Sec. 17. [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
  ALTERNATIVES.
      Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
 the meanings given.
     (b) "Commission" means the Public Utilities Commission.
     (c) "Voice over internet protocol" or "VOIP" has the meaning given in section 237.025.
     (d) "Alternative providers" means: (1) one or more providers the Federal Communications
 Commission has identified through Broadband Data Collection, location fabric data, or a
 successor data program as having a provider offering wireline broadband access service
 through fiber optic cable to the home capable of carrying VOIP of at least 25 megabits per
 second download speed and three megabit per second upload speed and offers VOIP services
 at a rate no more than 120 percent of the current rate for local flat-rated voice service; or
 (2) upon a request by a telephone company or telecommunications carrier, a Federal
 Communications Commission-approved adequate replacement provider if the requesting
 telephone company or telecommunications carrier meets the requirements of this section.
     Subd. 2. Customer transition plans. (a) A telephone company or telecommunications
 carrier may submit a petition to the commission for approval of a customer transition plan
 to discontinue telecommunications service in an area where the telephone company or
 telecommunications carrier has shown that customers in the affected area have access to
 one or more providers for the telecommunications service provided by the telephone company
 or telecommunications carrier.
     (b) The proposed customer transition plan must:
     (1) clearly identify the area and affected customers;
     (2) clearly identify the alternative providers available to customers in the affected area;
     (3) provide for technical assistance to affected customers who request assistance with
 the transition to an alternate provider;
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(4) include draft consumer dispute forms for commission approval;
(5) describe the public education meeting plans for affected customers when required
  by the commission;
(6) provide onetime connection fees and device costs for households eligible for credit
  as defined in section 237.70, subdivision 4a; and
(7) describe plans to transition or maintain critical government lines for which VOIP
  service is not a reasonable alternative.
Subd. 3. Commission process. The commission must provide for notice and comment
  on the petition for a customer transition plan. The commission must approve, modify, or
 reject a petition filed under this section. The commission may approve a plan under this
 section only if the commission finds that the telephone company or telecommunications
 carrier:
(1) has met the telephone company's or telecommunications carrier's burden of
 demonstrating to the commission that customers in the affected area have at least one
 alternative provider available to those customers;
(2) has demonstrated that it will put sufficient resources into assisting customers to
 transition to an alternate provider, including providing onetime connection fees and device
 costs for households eligible for credit as defined in section 237.70, subdivision 4a; and
(3) has held a public meeting in the affected area and provided written notice of the
 meeting to customers 60 days in advance.
Subd. 4. Obligations upon approval. (a) Upon approval of a petition for a customer
 transition plan under this section, the telephone company or telecommunications carrier
 that proposed the petition must continue to serve an affected customer until (1) the telephone
 company or telecommunications carrier completes the required actions in subdivision 2,
 and (2) any disputes brought before the commission by the customer are resolved.
(b) Nothing in this section relieves a telephone company or telecommunications carrier
 from their obligations under current law, rule, and commission order for customers for
 whom the commission has not granted approval of a transition plan pursuant to subdivision
 3.
Subd. 5. Dispute resolution. The commission must resolve any dispute over whether a
 location has service available at the rates described in subdivision 1 on an expedited basis
 pursuant to section 237.61, prior to the date service is discontinued. A dispute must be
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06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  submitted at least 90 days prior to the date of service discontinuance and resolved 15 days
  prior to the date of service discontinuation.
      Subd. 6. Reinstatement of service. (a) The commission may reinstate existing obligations
  on the telephone company or telecommunications carrier to provide services to customers
  affected by this section:
      (1) on the commission's own initiative; or
      (2) in response to a request for agency action.
      (b) Before acting under this subdivision, the commission must:
      (1) provide notice and conduct a hearing; and
     (2) determine that reinstating any existing obligation to serve is necessary because
 customers lack access to one or more providers.
     (c) The telephone company or telecommunications carrier that would be affected by
 modification or reinstatement of service bears the burden of proof in a proceeding under
 this subdivision.
     Subd. 7. Local exchange carrier. Nothing in this section relieves an incumbent local
 exchange carrier, as defined under United States Code, title 47, section 251(h)(1), of the
 incumbent local exchange carrier's existing interconnection obligations or terminates existing
 interconnection agreements in a manner other than according to the terms of the existing
 interconnection agreements or other existing law.
     Subd. 8. No relinquishment of ETC status. A petition approved under this section is
 not a relinquishment of any eligible telecommunications carrier designation that has been
 granted to the petitioning telephone company or telecommunications carrier under federal
 and state law.
     EFFECTIVE DATE. This section is effective July 1, 2026.
   Sec. 18. Minnesota Statutes 2024, section 239.761, subdivision 3, is amended to read:
     Subd. 3. Gasoline. (a) Gasoline that is not blended with biofuel must not be contaminated
 with water or other impurities and must comply with ASTM specification D4814-11b
 D4814-24a. 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:
Article 7 Sec. 18.  96
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(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision
  4;
(2) shall not blend the gasoline with any oxygenate other than biofuel;
(3) shall not blend the gasoline with other petroleum products that are not gasoline or
  biofuel;
(4) shall not blend the gasoline with products commonly and commercially known as
  casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
  gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
 designed to replace tetra-ethyl lead, that is registered by the EPA.
   Sec. 19. Minnesota Statutes 2024, section 239.761, subdivision 4, is amended to read:
Subd. 4. Gasoline blended with ethanol; general. (a) Gasoline may be blended with
 agriculturally derived, denatured ethanol that complies with the requirements of subdivision
 5.
(b) A gasoline-ethanol blend must:
(1) comply with the volatility requirements in Code of Federal Regulations, title 40, part
 1090;
(2) comply with ASTM specification D4814-11b D4814-24a, or the gasoline base stock
 from which a gasoline-ethanol blend was produced must comply with ASTM specification
 D4814-11b D4814-24a; and
(3) not be blended with casinghead gasoline, absorption gasoline, condensation gasoline,
 drip gasoline, or natural gasoline after the gasoline-ethanol blend has been sold, transferred,
 or otherwise removed from a refinery or terminal.
   Sec. 20. Minnesota Statutes 2024, section 239.761, subdivision 5, is amended to read:
Subd. 5. Denatured ethanol. Denatured ethanol that is to be blended with gasoline must
 be agriculturally derived and must comply with ASTM specification D4806-11a D4806-21a.
 This includes the requirement that ethanol may be denatured only as specified in Code of
 Federal Regulations, title 27, parts 20 and 21.
Article 7 Sec. 20.  97
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    Sec. 21. Minnesota Statutes 2024, section 239.761, subdivision 6, is amended to read:
      Subd. 6. Gasoline blended with nonethanol oxygenate. (a) A person responsible for
  the product shall comply with the following requirements:
      (1) after July 1, 2000, gasoline containing in excess of one-third of one percent, in total,
  of nonethanol oxygenates listed in paragraph (b) must not be sold or offered for sale at any
  time in this state; and
      (2) after July 1, 2005, gasoline containing any of the nonethanol oxygenates listed in
  paragraph (b) must not be sold or offered for sale in this state.
      (b) The oxygenates prohibited under paragraph (a) are:
     (1) methyl tertiary butyl ether, as defined in section 296A.01, subdivision 34;
     (2) ethyl tertiary butyl ether, as defined in section 296A.01, subdivision 18; or
     (3) tertiary amyl methyl ether.
     (c) Gasoline that is blended with a nonethanol oxygenate must comply with ASTM
 specification D4814-11b D4814-24a. Nonethanol oxygenates must not be blended into
 gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery
 or terminal.
   Sec. 22. Minnesota Statutes 2024, section 239.791, subdivision 11, is amended to read:
     Subd. 11. Exemption for motor sports racing. (a) A person responsible for the product
 may offer for sale, sell, or dispense at a public or private racecourse or a retail gasoline
 station, gasoline that is not oxygenated in accordance with subdivision 1 if the gasoline is
 intended to be used exclusively as a fuel for off-highway motor sports racing events.
     (b) No more than one storage tank on the premises of a retail gasoline station may be
 used to store nonoxygenated motor sports racing gasoline that is offered for sale, sold, or
 dispensed at the station. The pump stand at the station must be posted with a permanent,
 conspicuously placed notice in full view of consumers stating: "FOR USE IN
 OFF-HIGHWAY MOTOR SPORTS ENGINES ONLY."
   Sec. 23. [239.90] RETAIL ELECTRIC VEHICLE SUPPLY EQUIPMENT.
     Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
 the meanings given.
Article 7 Sec. 23.  98
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      (b) "Electric vehicle supply equipment" or "EVSE" means a conductor, including an
  ungrounded, grounded, and equipment grounding conductor, electric vehicle connector,
  attachment plug, and other fitting, device, power outlet, or apparatus installed specifically
  to measure, deliver, and compute the price of electrical energy delivered to an electric
  vehicle.
      (c) "Electricity sold as vehicle fuel" means electrical energy transferred to or stored
  onboard an electric vehicle primarily to propel the electric vehicle.
      (d) "Fixed service" means a service that continuously provides the nominal power that
  is possible with the equipment as installed.
     (e) "Nominal power" means the intended, named, or stated, as opposed to the actual,
 rate of electrical energy transfer.
     (f) "Variable service" means a service that may be controlled, resulting in periods of
 reduced or interrupted transfer of electrical energy.
     Subd. 2. Inspection; fees. The director must inspect a retail EVSE annually or as often
 as is possible given budgetary and staffing limitations. The director must charge a retail
 EVSE owner a $100 fee to inspect and test each retail EVSE charging port.
     Subd. 3. Retail EVSE program account; appropriation. A retail EVSE program
 account is created in the special revenue fund of the state treasury. The commissioner must
 credit to the account fees collected from inspections under this section and appropriations
 and transfers made to the account. Earnings, including interest, dividends, and any other
 earnings arising from assets of the account, must be credited to the account. Money in the
 account is appropriated to the commissioner to pay for operations of the retail EVSE program.
     Subd. 4. Method of sale. (a) Electrical energy kept, offered, or exposed for sale and
 sold at retail as a vehicle fuel must be expressed in kilowatt-hour units.
     (b) In addition to the price per kilowatt-hour for the quantity of electrical energy sold,
 a fee may be assessed for other services. A fee assessed for another service may be a fixed
 fee or may be based on time measurement.
     Subd. 5. Labeling. (a) A computing retail EVSE must display the unit price in whole
 cents or tenths of one cent, based on the price per kilowatt-hour. If the electrical energy is
 unlimited or free of charge, the computing retail EVSE must clearly indicate that the electrical
 energy is unlimited or free of charge in lieu of the unit price.
     (b) For a fixed service application, the following information must be conspicuously
 displayed or posted on the face of the device:
Article 7 Sec. 23.  99
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      (1) the level of electric vehicle service, expressed as the nominal power transfer; and
      (2) the type of electrical energy transfer.
      (c) If a fee is assessed for other services in direct connection with fueling the vehicle,
  including but not limited to a fee based on time measurement or a fixed fee, the additional
  fee must be displayed.
      (d) A retail EVSE must be labeled in a manner that complies with Federal Trade
  Commissioner labeling requirements for alternative fuels and alternative fueled vehicles,
  Code of Federal Regulations, title 16, part 309.
      (e) A retail EVSE must be listed and labeled in a manner that complies with the National
 Electric Code NFPA 70, Article 625, Electric Vehicle Charging Systems.
     Subd. 6. Advertising; sign prices. (a) When a sign or device is used to advertise the
 price of electricity to fuel a vehicle, the price for electrical energy must be expressed in
 price per kilowatt-hour, in whole cents or tenths of one cent. If the electrical energy is
 unlimited or free of charge, the advertising or sign must clearly indicate that the electrical
 energy is unlimited or free of charge in lieu of the unit price.
     (b) If more than one electrical energy unit price may apply over the duration of a single
 transaction or sale to the general public, the terms and conditions that determine each unit
 price and the times each unit price apply must be clearly displayed.
     (c) For a fixed service application, the following information must be conspicuously
 displayed or posted:
     (1) the level of electric vehicle service, expressed as the nominal power transfer; and
     (2) the type of electrical energy transfer.
     (d) For a variable service application, the following information must be conspicuously
 displayed or posted:
     (1) the type of delivery;
     (2) the minimum and maximum power transfer that may occur during a transaction,
 including whether service may be reduced to zero;
     (3) the conditions under which a variation in electrical energy transfer occurs; and
     (4) the type of electrical energy transfer.
  Article 7 Sec. 23.  100
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(e) If a fee is assessed for other services in direct connection with the fueling of the
  vehicle, including but not limited to a fee based on time measurement or a fixed fee, the
  additional fee must be included on all street signs or other advertising.
Subd. 7. Administrative rulemaking. For purposes of this section, the commissioner
  may use the expedited rulemaking process under section 14.389 to adopt administrative
  rules that incorporate the 2025 version of NIST Handbook 44 into Minnesota Rules, chapter
  7601.
    Sec. 24. Minnesota Statutes 2024, section 296A.01, subdivision 20, is amended to read:
Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to be blended
 with gasoline, has been agriculturally derived, and complies with ASTM specification
 D4806-11a D4806-21a. This includes the requirement that ethanol may be denatured only
 as specified in Code of Federal Regulations, title 27, parts 20 and 21.
   Sec. 25. Minnesota Statutes 2024, section 296A.01, subdivision 23, is amended to read:
Subd. 23. Gasoline. (a) "Gasoline" means:
(1) all products commonly or commercially known or sold as gasoline regardless of
 their classification or uses, except casinghead gasoline, absorption gasoline, condensation
 gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761,
 subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise
 removed from a refinery or terminal; and
(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and
 commercially used as, a fuel in spark-ignition, internal combustion engines, and that when
 tested by the Weights and Measures Division meets the specifications in ASTM specification
 D4814-11b D4814-24a.
(b) Gasoline that is not blended with ethanol must not be contaminated with water or
 other impurities and must comply with both ASTM specification D4814-11b D4814-24a
 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;
  Article 7 Sec. 25.  101
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (2) must not blend the gasoline with any oxygenate other than denatured, agriculturally
  derived ethanol;
      (3) must not blend the gasoline with other petroleum products that are not gasoline or
  denatured, agriculturally derived ethanol;
      (4) must not blend the gasoline with products commonly and commercially known as
  casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural
  gasoline; and
      (5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive
  designed to replace tetra-ethyl lead, that is registered by the EPA.
   Sec. 26. Minnesota Statutes 2024, section 296A.01, subdivision 24, is amended to read:
     Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with
 nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or
 ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that
 complies with ASTM specification D4814-11b D4814-24a. Oxygenates, other than denatured
 ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or
 otherwise removed from a refinery or terminal.
   Sec. 27. Minnesota Statutes 2024, section 325E.3892, subdivision 1, is amended to read:
     Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
 the meanings given.
     (b) "Covered product" means any of the following products or product components:
     (1) jewelry;
     (2) toys;
     (3) cosmetics and personal care products;
     (4) puzzles, board games, card games, and similar games;
     (5) play sets and play structures;
     (6) outdoor games;
     (7) school supplies, except ink pens and mechanical pencils;
     (8) pots and pans;
     (9) cups, bowls, and other food containers;
  Article 7 Sec. 27.  102
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (10) craft supplies and jewelry-making supplies;
      (11) chalk, crayons, children's paints, and other art supplies except professional artist
  materials, including but not limited to oil-based paints, water-based paints, paints, pastels,
  pigments, ceramic glazes, markers, and encaustics;
      (12) fidget spinners;
      (13) costumes, costume accessories, and children's and seasonal party supplies;
      (14) keys, key chains, and key rings; and
      (15) clothing, footwear, headwear, and accessories.
      (c) "Pastels" means a crayon composed of powdered pigments bonded with gum or resin.
     EFFECTIVE DATE. This section is effective the day following final enactment.
   Sec. 28. Minnesota Statutes 2024, section 325E.3892, subdivision 2, is amended to read:
     Subd. 2. Prohibition. (a) A person must not import, manufacture, sell, hold for sale, or
 distribute or offer for use in this state any covered product containing:
     (1) lead at more than 0.009 percent by total weight (90 parts per million); or
     (2) cadmium at more than 0.0075 percent by total weight (75 parts per million).
     (b) This section does not apply to:
     (1) covered products containing lead or cadmium, or both, when regulation is preempted
 by federal law.;
     (2) covered products that contain lead only in solder used in internal components if:
     (i) the product is not imported, manufactured, sold, held for sale, distributed, or offered
 for use in this state after July 1, 2028; and
     (ii) the manufacturer of the product submits biennial reports to the commissioner of the
 Pollution Control Agency that explain the barriers to removing lead from the product,
 progress towards adoption of lead-free alternatives, and a timeline to fully adopt a lead-free
 alternative;
     (3) keys that contain lead and are imported, manufactured, sold, held for sale, distributed,
 or offered for use in Minnesota before July 1, 2028;
     (4) keys that contain lead equal to or less than 1.5 percent by total weight and are
 imported, manufactured, sold, held for sale, distributed, or offered for use in Minnesota
 after July 1, 2028; or
  Article 7 Sec. 28.  103
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (5) pots and pans, if the pot or pan:
      (i) is made of cast iron or steel;
      (ii) has cadmium contained only in a vitreous enamel that does not come into contact
  with food; and
      (iii) does not contain lead in concentration greater than the limit established in subdivision
  2, paragraph (a).
      EFFECTIVE DATE. This section is effective the day following final enactment.
    Sec. 29. Minnesota Statutes 2024, section 325F.072, subdivision 3, is amended to read:
      Subd. 3. Prohibition. (a) No person, political subdivision, or state agency shall
 manufacture or knowingly sell, offer for sale, distribute for sale, or distribute for use in this
 state, and no person shall use in this state, class B firefighting foam containing PFAS
 chemicals.
     (b) This subdivision does not apply to the manufacture, sale, distribution, or use of class
 B firefighting foam for which the inclusion of PFAS chemicals is required by federal law,
 including but not limited to Code of Federal Regulations, title 14, section 139.317. If a
 federal requirement to include PFAS chemicals in class B firefighting foam is revoked after
 January 1, 2024, class B firefighting foam subject to the revoked requirements is no longer
 exempt under this paragraph effective one year after the day of revocation.
     (c) This subdivision does not apply to the manufacture, sale, distribution, or use of class
 B firefighting foam for purposes of use at an airport, as defined under section 360.013,
 subdivision 39, until the state fire marshal makes a determination that:
     (1) the Federal Aviation Administration has provided policy guidance on the transition
 to fluorine-free firefighting foam;
     (2) a fluorine-free firefighting foam product is included in the Federal Aviation
 Administration's Qualified Product Database; and
     (3) a firefighting foam product included in the database under clause (2) is commercially
 available in quantities sufficient to reliably meet the requirements under Code of Federal
 Regulations, title 14, part 139.
     (d) Until the state fire marshal makes a determination under paragraph (c), the operator
 of an airport using class B firefighting foam containing PFAS chemicals must, on or before
 December 31 each calendar year, submit a report to the state fire marshal regarding the
 status of the airport's conversion to class B firefighting foam products without intentionally
  Article 7 Sec. 29.  104
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
  added PFAS, the disposal of class B firefighting foam products with intentionally added
  PFAS, and an assessment of the factors listed in paragraph (c) as applied to the airport.
      (e) Until January 1, 2028, this subdivision does not apply to the manufacture, sale,
  distribution, or use of class B firefighting foam for use in fixed firefighting systems in a
  hangar at an airport. The commissioner of the Pollution Control Agency, in consultation
  with the state fire marshal, may issue a hangar operator one-year extensions beyond January
  1, 2028, if the commissioner determines (1) the need for additional time is beyond the
  operator's control, and (2) public safety and the environment is sufficiently protected during
  each extension period.
   Sec. 30. [325F.677] AVAILABILITY OF WATER AT PLACES OF
 ENTERTAINMENT.
     Subdivision 1. Definition. For purposes of this section, "place of entertainment" has the
 meaning given in section 325F.676, subdivision 1, paragraph (h).
     Subd. 2. Available water requirement. When a place of entertainment's occupancy
 exceeds 100 attendees and where an attendee must have a ticket in order to access the place
 of entertainment, a place of entertainment must provide attendees with access to potable
 water by:
     (1) providing water at no cost to the attendees;
     (2) allowing attendees to bring factory-sealed bottled water into the place of
 entertainment; or
     (3) allowing attendees to bring an empty water bottle to the place of entertainment and
 providing attendees with access to potable water to fill the bottle. A place of entertainment
 may prohibit certain types and sizes of water bottles in order to protect the safety of others.
     Subd. 3. Exceptions. An exhibit, gallery, or presentation space where beverages are
 prohibited is not required to allow water into the exhibit, gallery, or presentation space if
 water is available at no cost in an accessible location outside of the exhibit, gallery, or
 presentation space.
   Sec. 31. Minnesota Statutes 2024, section 325G.24, subdivision 2, is amended to read:
     Subd. 2. Right of member unilateral termination. (a) Any person who has elected to
 become a member of a club may unilaterally terminate such membership, in the person's
 exclusive discretion, by giving notice of termination at any time.
  Article 7 Sec. 31.  105
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
      (b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
  and postage prepaid.
      (c) A club must not impose a termination fee or any other liability on the member for
  termination under this subdivision.
      (d) Termination under this subdivision is effective at the end of the membership term
  in which the member provides the notice of termination. If membership is at-will without
  a defined membership term, then termination under this subdivision is effective immediately,
  unless no later than 30 days after the date of a verified consumer's notice of termination. If
  the member indicates a future effective date of termination, in which event beyond those
 set forth herein, the date indicated by the member is the effective date of termination.
     (e) If a member provides notice of termination at any time before midnight of the third
 business day following the date on which membership was attained, the club must treat the
 notice as a notice of cancellation under subdivision 1, unless the member specifically
 provides for a future termination effective date.
     EFFECTIVE DATE. This section is effective July 1, 2025, and applies to contracts
 entered into, modified, or renewed on or after that date.
   Sec. 32. Minnesota Statutes 2024, section 550.136, subdivision 3, is amended to read:
     Subd. 3. Limitation on levy on earnings. (a) Unless the judgment is for child support,
 the maximum part of the aggregate disposable earnings of an individual for any pay period
 subjected to an execution levy may not exceed the lesser of:
     (1) 25 percent of the judgment debtor's disposable earnings; or
     (2) the amount by which the judgment debtor's disposable earnings exceed the greater
 of: (i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
 clause (3) (4); or (ii) 40 times the federal minimum hourly wages prescribed by section
 6(a)(1) of the Fair Labor Standards Act of 1938, United States Code, title 29, section
 206(a)(1), in effect at the time the earnings are payable, times the number of work weeks
 in the pay period. When a pay period consists of other than a whole number of work weeks,
 each day of that pay period in excess of the number of completed work weeks shall be
 counted as a fraction of a work week equal to the number of excess workdays divided by
 the number of days in the normal work week.
     (b) If the judgment is for child support, the levy may not exceed:
  Article 7 Sec. 32.  106
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
  supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
  to be calculated to the beginning of the work week in which the execution levy is received);
(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
  supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
  to be calculated to the beginning of the work week in which the execution levy is received);
(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
  supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
  to be calculated to the beginning of the work week in which the execution levy is received);
 or
(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
 supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
 to be calculated to the beginning of the work week in which the execution levy is received).
Execution levies under this section on judgments for child support are effective until
 the judgments are satisfied if the judgment creditor is a county and the employer is notified
 by the county when the judgment is satisfied.
(c) No court may make, execute, or enforce an order or any process in violation of this
 section.
   Sec. 33. Minnesota Statutes 2024, section 551.06, subdivision 3, is amended to read:
Subd. 3. Limitation on levy on earnings. (a) Unless the judgment is for child support,
 the maximum part of the aggregate disposable earnings of an individual for any pay period
 subjected to an execution levy may not exceed the lesser of:
(1) 25 percent of the judgment debtor's disposable earnings; or
(2) the amount by which the judgment debtor's disposable earnings exceed the greater
 of: (i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
 clause (3) (4); or (ii) 40 times the federal minimum hourly wages prescribed by section
 6(a)(1) of the Fair Labor Standards Act of 1938, United States Code, title 29, section
 206(a)(1), in effect at the time the earnings are payable, times the number of work weeks
 in the pay period. When a pay period consists of other than a whole number of work weeks,
 each day of that pay period in excess of the number of completed work weeks shall be
 counted as a fraction of a work week equal to the number of excess workdays divided by
 the number of days in the normal work week.
  Article 7 Sec. 33.  107
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(b) If the judgment is for child support, the levy may not exceed:
(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
  supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
  to be calculated to the beginning of the work week in which the execution levy is received);
(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
  supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
  to be calculated to the beginning of the work week in which the execution levy is received);
(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
  supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
 to be calculated to the beginning of the work week in which the execution levy is received);
 or
(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
 supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
 to be calculated to the beginning of the work week in which the execution levy is received).
Execution levies under this section on judgments for child support are effective until
 the judgments are satisfied if the judgment creditor is a county and the employer is notified
 by the county when the judgment is satisfied.
(c) No court may make, execute, or enforce an order or any process in violation of this
 section.
   Sec. 34. Minnesota Statutes 2024, section 571.922, is amended to read:
571.922 LIMITATION ON WAGE GARNISHMENT.
(a) Unless the judgment is for child support, the maximum part of the aggregate
 disposable earnings of an individual for any pay period subjected to garnishment may not
 exceed the lesser of:
(1) 25 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
 80 times the greater of the hourly wage described in paragraph (b);
(2) 15 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
 60 times, but is less than or equal to 80 times, the greater of the hourly wages described in
 paragraph (b); or
(3) ten percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
 40 times, but is less than or equal to 60 times, the greater of the hourly wages described in
 paragraph (b).
  Article 7 Sec. 34.  108
  06/05/25  REVISOR  RSI/AD  25-05685  as introduced
(b) The amount by which the debtor's disposable earnings exceed the greater of:
(i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (a),
  clause (3) (4); or
(ii) 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the Fair
  Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The calculation
  of the amount that is subject to garnishment must be based on the hourly wage in effect at
  the time the earnings are payable, times the number of work weeks in the pay period. When
  a pay period consists of other than a whole number of work weeks, each day of that pay
  period in excess of the number of completed work weeks shall be counted as a fraction of
 a work week equal to the number of excess workdays divided by the number of days in the
 normal work week.
(c) If the judgment is for child support, the garnishment may not exceed:
(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
 supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
 to be calculated to the beginning of the work week in which the execution levy is received);
(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
 supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
 to be calculated to the beginning of the work week in which the garnishment summons is
 received);
(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
 supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
 to be calculated to the beginning of the work week in which the execution levy is received);
 or
(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
 supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
 to be calculated to the beginning of the work week in which the garnishment summons is
 received).
Wage garnishments on judgments for child support are effective until the judgments are
 satisfied if the judgment creditor is a county and the employer is notified by the county
 when the judgment is satisfied.
(d) No court may make, execute, or enforce an order or any process in violation of this
 section.
  Article 7 Sec. 34.  109
06/05/25  REVISOR       RSI/AD  25-05685  as introduced
   Sec. 35. SECURITIES BROKER-DEALER CONDUCT; EXPEDITED
 RULEMAKING.
     The commissioner of commerce must adopt rules amending Minnesota Rules, part
 2876.5021, to reflect that NASD is now referred to as FINRA and to comply with FINRA's
 new securities broker-dealer conduct rules. The commissioner of commerce may use the
 expedited rulemaking process under Minnesota Statutes, section 14.389, to amend Minnesota
 Rules, part 2876.5021, under this section.
Article 7 Sec. 35.  110
  APPENDIX
  Article locations for 25-05685
ARTICLE 1   COMMERCE FINANCE....................................................................... Page.Ln 2.2
ARTICLE 2   FINANCIAL INSTITUTIONS POLICY............................................... Page.Ln 7.23
ARTICLE 3   INSURANCE......................................................................................... Page.Ln 19.1
ARTICLE 4   INSURANCE HOLDING COMPANY SYSTEMS.............................. Page.Ln 29.25
ARTICLE 5   MEDICARE SUPPLEMENT INSURANCE......................................... Page.Ln 52.1
ARTICLE 6   REINSURANCE.................................................................................... Page.Ln 67.1
ARTICLE 7   COMMERCE AND CONSUMER PROTECTION POLICY............... Page.Ln 76.13

Omnibus Commerce and Consumer Protections policy and appropriations

Sponsors

Sen. Matt Klein (D) sponsors SF 4 alone.

Matt Klein

Sen. · D–53 · Sponsor

History

SF 4 has taken 2 actions since Jun 9, 2025.

ChamberAction
Jun 9, 2025
Senate
Introduction and first reading
Jun 9, 2025
Senate
Laid on table

Votes

SF 4 has not gone to a roll call.

Source: revisor.mn.gov · legiscan.com