Text of MN SF 4097 (2024)
Omnibus Commerce policy bill
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As introduced
12,124 characters
1.1
A bill for an act
1.2
relating to commerce; making technical and housekeeping changes to various
1.3
provisions governing or administered by the Department of Commerce; amending
1.4
Minnesota Statutes 2022, sections 82B.021, subdivision 26; 82B.094; 82B.095,
1.5
subdivision 3; 82B.13, subdivision 1; 82B.19, subdivision 1; 115C.08, subdivision
1.6
2; Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 18; repealing
1.7
Minnesota Statutes 2022, sections 45.014; 82B.25.
1.8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9
Section 1. Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 18, is amended
1.10
to read:
1.11
Subd. 18. Money transmission. (a) "Money transmission" means:
1.12
(1) selling or issuing payment instruments to a person located in this state;
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(2) selling or issuing stored value to a person located in this state; or
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(3) receiving money for transmission from a person located in this state.
1.15
(b) Money transmission includes payroll processing services. Money transmission does
1.16
not include the provision solely of online or telecommunications services or network access.
1.17
Sec. 2. Minnesota Statutes 2022, section 82B.021, subdivision 26, is amended to read:
1.18
Subd. 26. Standards of professional practice. "Standards of professional practice"
1.19
means the version of the uniform standards of professional appraisal practice of the
1.20
Appraisers Appraisal Standards Board of the Appraisal Foundation in effect as of January
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1, 1991, or other version of these standards the commissioner may by order designate on
1.22
the date the appraiser signs the appraisal report.
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Sec. 2.
24-05488
as introduced
02/07/24
REVISOR
EB/SV
SENATE
STATE OF MINNESOTA
S.F. No. 4097
NINETY-THIRD SESSION
(SENATE AUTHORS: KLEIN)
OFFICIAL STATUS
D-PG
DATE
Introduction and first reading
02/22/2024
Referred to Commerce and Consumer Protection
2.1
Sec. 3. Minnesota Statutes 2022, section 82B.094, is amended to read:
2.2
82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.
2.3
(a) A certified residential real property appraiser or a certified general real property
2.4
appraiser, in good standing, may engage a trainee real property appraiser to assist in the
2.5
performance of real estate appraisals, provided that the certified residential real property
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appraiser or a certified general real property appraiser:
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(1) has been licensed in good standing as either a certified residential real property
2.8
appraiser or a certified general real property appraiser for the three-year period immediately
2.9
preceding the individual's application to become a supervisor;
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(2) has completed a six-hour course, approved in advance by the commissioner and
2.11
provided by an education provider approved by the commissioner, that is specifically oriented
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to the requirements and responsibilities of supervisory appraisers and trainee appraisers. A
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course approved by the commissioner for the purposes of this section must be given the
2.14
course title "Minnesota Supervisor/Trainee Appraiser Course";
2.15
(3) has not been the subject of any license or certificate suspension or revocation or has
2.16
not been prohibited from supervising activities in this state or any other state within the
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three years immediately preceding the individual's application to become a supervisor;
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(4) has no more than three trainee real property appraisers working under supervision
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at any one time;
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(5) actively and personally supervises the trainee real property appraiser, which includes
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ensuring that research of general and specific data has been adequately conducted and
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properly reported, application of appraisal principles and methodologies has been properly
2.23
applied, that the analysis is sound and adequately reported, and that any analyses, opinions,
2.24
or conclusions are adequately developed and reported so that the appraisal report is not
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misleading;
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(6) discusses with the trainee real property appraiser any necessary and appropriate
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changes that are made to a report, involving any trainee appraiser, before it is transmitted
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to the client. Changes not discussed with the trainee real property appraiser that are made
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by the supervising appraiser must be provided in writing to the trainee real property appraiser
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upon completion of the appraisal report;
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(7) accompanies the trainee real property appraiser on the inspections of the subject
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properties and drive-by inspections of the comparable sales on all appraisal assignments
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Sec. 3.
24-05488
as introduced
02/07/24
REVISOR
EB/SV
3.1
for which the trainee will perform work until the trainee appraiser is determined to be
3.2
competent, in accordance with the competency rule of USPAP for the property type;
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(8) accepts full responsibility for the appraisal report by signing and certifying that the
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report complies with USPAP; and
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(9) reviews and signs the trainee real property appraiser's appraisal report or reports or
3.6
if the trainee appraiser is not signing the report, states in the appraisal the name of the trainee
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and scope of the trainee's significant contribution to the report.
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(b) The supervising appraiser must review and sign the applicable experience log required
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to be kept by the trainee real property appraiser.
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(c) The supervising appraiser must notify the commissioner within ten days when the
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supervision of a trainee real property appraiser has terminated or when the trainee appraiser
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is no longer under the supervision of the supervising appraiser.
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(d) The supervising appraiser must maintain a separate work file for each appraisal
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assignment.
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(e) The supervising appraiser must verify that any trainee real property appraiser that is
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subject to supervision is properly licensed and in good standing with the commissioner.
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EFFECTIVE DATE. This section is effective January 1, 2026.
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Sec. 4. Minnesota Statutes 2022, section 82B.095, subdivision 3, is amended to read:
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Subd. 3. Conformance to Appraisal Qualifications Board criteria. (a) The
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requirements to obtain and maintain a trainee real property appraiser, licensed real property
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appraiser, certified residential real property appraiser, or certified general real property
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appraiser license are the education, examination, and experience requirements established
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by the Appraiser Qualifications Board of the Appraisal Foundation and published in the
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most recent version of the Real Property Appraiser Qualification Criteria.
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(b) An applicant must complete the applicable education and experience requirements
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before taking the required examination.
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EFFECTIVE DATE. This section is effective January 1, 2026.
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Sec. 5. Minnesota Statutes 2022, section 82B.13, subdivision 1, is amended to read:
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Subdivision 1. Trainee real property appraiser. As a prerequisite for licensing as a
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trainee real property appraiser, an applicant must present evidence satisfactory to the
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commissioner that the person has successfully completed a six-hour course that is specifically
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Sec. 5.
24-05488
as introduced
02/07/24
REVISOR
EB/SV
4.1
oriented to the requirements and responsibilities of supervisory appraisers and trainee
4.2
appraisers. A course approved by the commissioner for the purposes of this subdivision
4.3
must be given the course title "Minnesota Supervisor/Trainee Appraiser Course." This The
4.4
course under this subdivision must not be counted toward qualifying education to upgrade
4.5
to a higher level appraiser license.
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EFFECTIVE DATE. This section is effective January 1, 2026.
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Sec. 6. Minnesota Statutes 2022, section 82B.19, subdivision 1, is amended to read:
4.8
Subdivision 1. License renewals. (a) The commissioner must determine that a licensed
4.9
real estate appraiser has met the continuing education requirements of this chapter before
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the commissioner renews a license. This determination must be based on, for a resident
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appraiser, course completion records uploaded electronically in a manner prescribed by the
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commissioner and, for a nonresident appraiser, course completion records presented by
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electronic transmission or uploaded electronically in a manner prescribed by the
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commissioner.
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The basic continuing education requirement for renewal of a license is the completion
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by the applicant either as a student or as an instructor, during the immediately preceding
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term of licensing, of at least 30 classroom hours of instruction in courses or seminars that
4.18
have received the approval of the commissioner. Classroom hour credit must not be accepted
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for courses of less than two hours. As part of the continuing education requirements of this
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section, the commissioner must require that all real estate appraisers successfully complete
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the seven-hour national USPAP update course every two years. If the applicant's immediately
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preceding term of licensing consisted of six or more months, but fewer than 24 months, the
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applicant must provide evidence of completion of 15 hours of instruction during the license
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period. The credit hours required under this section may be credited to a person for distance
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education courses that meet Appraiser Qualifications Board criteria. An approved prelicense
4.26
education course may be taken for continuing education credit.
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(b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete
4.28
the seven-hour national USPAP update course every two years.
4.29
EFFECTIVE DATE. This section is effective January 1, 2026.
4.30
Sec. 7. Minnesota Statutes 2022, section 115C.08, subdivision 2, is amended to read:
4.31
Subd. 2. Imposing fee. The board shall notify the commissioner of revenue if the
4.32
unencumbered balance of the fund falls below $4,000,000, and within 60 90 days after
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Sec. 7.
24-05488
as introduced
02/07/24
REVISOR
EB/SV
5.1
receiving notice from the board, the commissioner of revenue shall impose the fee established
5.2
in subdivision 3 on the use of a tank for four calendar months, with payment to be submitted
5.3
with each monthly distributor tax return.
5.4
Sec. 8. REPEALER.
5.5
(a) Minnesota Statutes 2022, section 45.014, is repealed.
5.6
(b) Minnesota Statutes 2022, section 82B.25, is repealed.
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EFFECTIVE DATE. Paragraph (b) is effective January 1, 2026.
5
Sec. 8.
24-05488
as introduced
02/07/24
REVISOR
EB/SV
45.014 SEAL OF DEPARTMENT OF COMMERCE.
The commissioner of commerce shall devise a seal for official use as the seal of the Department
of Commerce. The seal must be capable of being legibly reproduced under photographic methods.
A description of the seal, and a copy of it, must be filed in the Office of the Secretary of State.
82B.25 VALUATION BIAS.
Subdivision 1. Definition. For the purposes of this section, "valuation bias" means to explicitly,
implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased
manner that harms a protected class, as defined by the Fair Housing Act of 1968, as amended.
Subd. 2. Education. A real property appraiser shall provide to the commissioner evidence of
satisfactory completion of a continuing education course on the valuation bias of real property. An
appraiser licensed after September 1, 2021, must complete the course required by this section prior
to the appraiser's first license renewal.
1R
APPENDIX
Repealed Minnesota Statutes: 24-05488
As enrolled or final
440,161 characters
1.1
A bill for an act
1.2
relating to commerce; adding, modifying, or eliminating various provisions
1.3
governing insurance, financial institutions, commercial regulations and consumer
1.4
protection, and telecommunications; modifying and authorizing certain on-sale
1.5
liquor licenses; delaying medical supplement implementation; making technical
1.6
changes; establishing penalties; authorizing administrative rulemaking; requiring
1.7
reports; amending Minnesota Statutes 2022, sections 45.011, subdivision 1; 47.20,
1.8
subdivision 2; 47.54, subdivisions 2, 6; 48.24, subdivision 2; 58.02, subdivisions
1.9
18, 21, by adding a subdivision; 58.04, subdivisions 1, 2; 58.05, subdivisions 1,
1.10
3; 58.06, by adding subdivisions; 58.08, subdivisions 1a, 2; 58.10, subdivision 3;
1.11
58.115; 58.13, subdivision 1; 58B.02, subdivision 8, by adding a subdivision;
1.12
58B.03, by adding subdivisions; 58B.06, subdivisions 4, 5; 58B.07, subdivisions
1.13
1, 3, 9, by adding subdivisions; 58B.09, by adding a subdivision; 60A.201, by
1.14
adding a subdivision; 65A.29, by adding a subdivision; 67A.01, subdivision 2;
1.15
67A.14, subdivision 1; 72A.20, subdivision 13; 80A.61; 80A.66; 80C.05,
1.16
subdivision 3; 82B.021, subdivision 26; 82B.095, subdivision 3; 82B.19,
1.17
subdivision 1; 115C.08, subdivision 2; 176.175, subdivision 2; 237.121; 237.19;
1.18
239.791, by adding a subdivision; 270C.63, subdivision 8; 270C.65, subdivision
1.19
1; 270C.67, subdivisions 1a, 11; 270C.69, subdivision 1; 325E.66, subdivision 1;
1.20
325F.03; 325F.04; 325F.05; 325F.56, subdivision 2; 325F.62, subdivision 3;
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325G.24; 325G.25, subdivision 1; 340A.101, subdivision 13; 340A.404,
1.22
subdivisions 1, 2, 6; 429.021, subdivision 1; 471.6161, subdivision 8; 471.617,
1.23
subdivision 2; 519.05; 550.37, subdivisions 2, 4, 12a, 14, 22, 23, by adding
1.24
subdivisions; 550.39; 571.72, subdivisions 6, 9; 571.914, subdivision 1; 571.92;
1.25
571.921; 571.922; 571.927; Minnesota Statutes 2023 Supplement, sections 53B.28,
1.26
subdivisions 18, 25; 53B.29; 53B.69, by adding subdivisions; 61A.031; 62Q.522,
1.27
subdivision 1; 62Q.523, subdivision 1; 80A.50; 144.587, subdivision 4; 239.791,
1.28
subdivision 8; 325E.21, subdivisions 1b, 11; 325E.80, subdivisions 1, 5, 6, 7;
1.29
332.71, subdivisions 2, 4, 5, 7; 332.72; 332.73, subdivision 1; 332.74, subdivisions
1.30
3, 5; Laws 2022, chapter 86, article 2, sections 3; 5; Laws 2023, chapter 57, article
1.31
2, sections 7; 8; 9; 10; 11; 12; 13; 14; 15; proposing coding for new law in
1.32
Minnesota Statutes, chapters 53B; 58; 60A; 61A; 62J; 62Q; 65A; 325F; 325G;
1.33
332; 513; proposing coding for new law as Minnesota Statutes, chapters 46A;
1.34
60M; 325O; 332C; repealing Minnesota Statutes 2022, sections 45.014; 58.08,
1.35
subdivision 3; 82B.25; 239.791, subdivision 3; 325G.25, subdivision 1a; 332.3351;
1.36
Minnesota Statutes 2023 Supplement, sections 53B.58; 62Q.522, subdivisions 3,
1.37
4; 332.71, subdivision 8.
1
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
SENATE
STATE OF MINNESOTA
S.F. No. 4097
NINETY-THIRD SESSION
(SENATE AUTHORS: KLEIN)
OFFICIAL STATUS
D-PG
DATE
Introduction and first reading
11710
02/22/2024
Referred to Commerce and Consumer Protection
Comm report: To pass as amended
13115a
04/02/2024
Second reading
13329
Special Order: Amended
13397a
04/04/2024
Third reading Passed
13412
Returned from House with amendment
13936
04/18/2024
Senate not concur, conference committee of 5 requested
13937
Senate conferees Klein; Seeberger; Frentz; Dahms; Rasmusson
14450
House conferees Stephenson; Kotyza-Witthuhn; Kraft; Cha; O'Driscoll
14454
04/24/2024
Conference committee report, delete everything
17061C
05/15/2024
Motion to reject CC report, did not prevail
17193
Senate adopted CC report and repassed bill
17194
Third reading
17195
House adopted SCC report and repassed bill
17730
05/17/2024
2.1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.2
ARTICLE 1
2.3
INSURANCE
2.4
Section 1. Minnesota Statutes 2022, section 60A.201, is amended by adding a subdivision
2.5
to read:
2.6
Subd. 6. Coverage deemed unavailable. Coverage for a risk that was referred to a
2.7
surplus lines broker by a Minnesota licensed insurance producer who is not affiliated with
2.8
the surplus lines broker is deemed unavailable from a licensed insurer.
2.9
Sec. 2. [60A.43] DISABILITY INCOME COVERAGE; DISCLOSURE.
2.10
(a) No contract or policy of long-term disability insurance that limits the duration of
2.11
coverage for mental health or substance use disorders shall be offered in this state without
2.12
a disclosure, provided at the time of application, that includes the following:
2.13
(1) a notification that the long-term disability coverage selected by the potential
2.14
policyholder or plan sponsor limits the duration of coverage for mental health or substance
2.15
use disorders; and
2.16
(2) that the potential policyholder or plan sponsor has the right to request more
2.17
information about the limitation and other coverage options that include an unlimited
2.18
duration, if available.
2.19
(b) Receipt of the disclosure described in paragraph (a) must be acknowledged by the
2.20
potential policyholder or plan sponsor and evidence of the disclosure and acknowledgment
2.21
must be retained by the insurance company offering the coverage for a period of no less
2.22
than two years.
2.23
EFFECTIVE DATE. This section is effective October 1, 2024.
2.24
Sec. 3. [61A.012] ANNUAL NOTICE REQUIRED.
2.25
Subdivision 1. Annual notice required. For each policy of individual life insurance
2.26
issued or delivered in Minnesota, a life insurance company must provide a written notice
2.27
to the policyholder that contains the following information, as applicable:
2.28
(1) the policyholder;
2.29
(2) the policy number;
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(3) the insured life; and
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Article 1 Sec. 3.
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3rd Engrossment
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REVISOR
RSI
3.1
(4) the current contact information for the life insurance company.
3.2
Subd. 2. Notice requirements. The notice required under this section must be provided
3.3
by the life insurance company to the policyholder at least once per calendar year, sent via
3.4
United States mail to the policyholder's last known address or electronically to the
3.5
policyholder's last known email address.
3.6
Subd. 3. Compliance with other law. This section's annual notice requirement is satisfied
3.7
by an annual report provided by a life insurance company to a policyholder pursuant to and
3.8
in compliance with section 61A.735.
3.9
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to policies
3.10
offered, issued, or renewed on or after that date.
3.11
Sec. 4. Minnesota Statutes 2023 Supplement, section 61A.031, is amended to read:
3.12
61A.031 SUICIDE PROVISIONS.
3.13
(a) The sanity or insanity mental competency of a person shall not be a factor in
3.14
determining whether a person committed completed suicide within the terms of an individual
3.15
or group life insurance policy regulating the payment of benefits in the event of the insured's
3.16
suicide. This paragraph shall not be construed to alter present law but is intended to clarify
3.17
present law.
3.18
(b) A life insurance policy or certificate issued or delivered in this state may exclude or
3.19
restrict liability for any death benefit in the event the insured dies as a result of suicide
3.20
within one year from the date of the issue of the policy or certificate. Any exclusion or
3.21
restriction shall be clearly stated in the policy or certificate. Any life insurance policy or
3.22
certificate which contains any exclusion or restriction under this paragraph shall also provide
3.23
that in the event any death benefit is denied because the insured dies as a result of suicide
3.24
within one year from the date of issue of the policy or certificate, the insurer shall refund
3.25
all premiums paid for coverage providing the denied death benefit on the insured.
3.26
Sec. 5. Minnesota Statutes 2023 Supplement, section 62Q.522, subdivision 1, is amended
3.27
to read:
3.28
Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
3.29
(b) "Closely held for-profit entity" means an entity that:
3.30
(1) is not a nonprofit entity;
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Article 1 Sec. 5.
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3rd Engrossment
SF4097
REVISOR
RSI
4.1
(2) has more than 50 percent of the value of its ownership interest owned directly or
4.2
indirectly by five or fewer owners; and
4.3
(3) has no publicly traded ownership interest.
4.4
For purposes of this paragraph:
4.5
(i) ownership interests owned by a corporation, partnership, limited liability company,
4.6
estate, trust, or similar entity are considered owned by that entity's shareholders, partners,
4.7
members, or beneficiaries in proportion to their interest held in the corporation, partnership,
4.8
limited liability company, estate, trust, or similar entity;
4.9
(ii) ownership interests owned by a nonprofit entity are considered owned by a single
4.10
owner;
4.11
(iii) ownership interests owned by all individuals in a family are considered held by a
4.12
single owner. For purposes of this item, "family" means brothers and sisters, including
4.13
half-brothers and half-sisters, a spouse, ancestors, and lineal descendants; and
4.14
(iv) if an individual or entity holds an option, warrant, or similar right to purchase an
4.15
ownership interest, the individual or entity is considered to be the owner of those ownership
4.16
interests.
4.17
(c) (b) "Contraceptive method" means a drug, device, or other product approved by the
4.18
Food and Drug Administration to prevent unintended pregnancy.
4.19
(d) (c) "Contraceptive service" means consultation, examination, procedures, and medical
4.20
services related to the prevention of unintended pregnancy, excluding vasectomies. This
4.21
includes but is not limited to voluntary sterilization procedures, patient education, counseling
4.22
on contraceptives, and follow-up services related to contraceptive methods or services,
4.23
management of side effects, counseling for continued adherence, and device insertion or
4.24
removal.
4.25
(e) "Eligible organization" means an organization that opposes providing coverage for
4.26
some or all contraceptive methods or services on account of religious objections and that
4.27
is:
4.28
(1) organized as a nonprofit entity and holds itself out to be religious; or
4.29
(2) organized and operates as a closely held for-profit entity, and the organization's
4.30
owners or highest governing body has adopted, under the organization's applicable rules of
4.31
governance and consistent with state law, a resolution or similar action establishing that the
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3rd Engrossment
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REVISOR
RSI
5.1
organization objects to covering some or all contraceptive methods or services on account
5.2
of the owners' sincerely held religious beliefs.
5.3
(f) "Exempt organization" means an organization that is organized and operates as a
5.4
nonprofit entity and meets the requirements of section 6033(a)(3)(A)(i) or (iii) of the Internal
5.5
Revenue Code of 1986, as amended.
5.6
(g) (d) "Medical necessity" includes but is not limited to considerations such as severity
5.7
of side effects, difference in permanence and reversibility of a contraceptive method or
5.8
service, and ability to adhere to the appropriate use of the contraceptive method or service,
5.9
as determined by the attending provider.
5.10
(h) (e) "Therapeutic equivalent version" means a drug, device, or product that can be
5.11
expected to have the same clinical effect and safety profile when administered to a patient
5.12
under the conditions specified in the labeling, and that:
5.13
(1) is approved as safe and effective;
5.14
(2) is a pharmaceutical equivalent: (i) containing identical amounts of the same active
5.15
drug ingredient in the same dosage form and route of administration; and (ii) meeting
5.16
compendial or other applicable standards of strength, quality, purity, and identity;
5.17
(3) is bioequivalent in that:
5.18
(i) the drug, device, or product does not present a known or potential bioequivalence
5.19
problem and meets an acceptable in vitro standard; or
5.20
(ii) if the drug, device, or product does present a known or potential bioequivalence
5.21
problem, it is shown to meet an appropriate bioequivalence standard;
5.22
(4) is adequately labeled; and
5.23
(5) is manufactured in compliance with current manufacturing practice regulations.
5.24
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health
5.25
plans offered, sold, issued, or renewed on or after that date.
5.26
Sec. 6. Minnesota Statutes 2023 Supplement, section 62Q.523, subdivision 1, is amended
5.27
to read:
5.28
Subdivision 1. Scope of coverage. Except as otherwise provided in section 62Q.522
5.29
62Q.679, subdivisions 2 and 3 and 4, all health plans that provide prescription coverage
5.30
must comply with the requirements of this section.
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Article 1 Sec. 6.
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3rd Engrossment
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REVISOR
RSI
6.1
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health
6.2
plans offered, sold, issued, or renewed on or after that date.
6.3
Sec. 7. [62Q.585] GENDER-AFFIRMING CARE COVERAGE; MEDICALLY
6.4
NECESSARY CARE.
6.5
Subdivision 1. Requirement. No health plan that covers physical or mental health
6.6
services may be offered, sold, issued, or renewed in this state that:
6.7
(1) excludes coverage for medically necessary gender-affirming care; or
6.8
(2) requires gender-affirming treatments to satisfy a definition of "medically necessary
6.9
care," "medical necessity," or any similar term that is more restrictive than the definition
6.10
provided in subdivision 2.
6.11
Subd. 2. Minimum definition. "Medically necessary care" means health care services
6.12
appropriate in terms of type, frequency, level, setting, and duration to the enrollee's diagnosis
6.13
or condition and diagnostic testing and preventive services. Medically necessary care must
6.14
be consistent with generally accepted practice parameters as determined by health care
6.15
providers in the same or similar general specialty as typically manages the condition,
6.16
procedure, or treatment at issue and must:
6.17
(1) help restore or maintain the enrollee's health; or
6.18
(2) prevent deterioration of the enrollee's condition.
6.19
Subd. 3. Definitions. (a) For purposes of this section, the following terms have the
6.20
meanings given.
6.21
(b) " Gender-affirming care" means all medical, surgical, counseling, or referral services,
6.22
including telehealth services, that an individual may receive to support and affirm the
6.23
individual's gender identity or gender expression and that are legal under the laws of this
6.24
state.
6.25
(c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes
6.26
the coverages listed in section 62A.011, subdivision 3, clauses (7) and (10).
6.27
EFFECTIVE DATE. This section is effective January 1, 2025.
6.28
Sec. 8. [62Q.679] RELIGIOUS OBJECTIONS.
6.29
Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
6
Article 1 Sec. 8.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
7.1
(b) "Closely held for-profit entity" means an entity that is not a nonprofit entity, has
7.2
more than 50 percent of the value of its ownership interest owned directly or indirectly by
7.3
five or fewer owners, and has no publicly traded ownership interest. For purposes of this
7.4
paragraph:
7.5
(1) ownership interests owned by a corporation, partnership, limited liability company,
7.6
estate, trust, or similar entity are considered owned by that entity's shareholders, partners,
7.7
members, or beneficiaries in proportion to their interest held in the corporation, partnership,
7.8
limited liability company, estate, trust, or similar entity;
7.9
(2) ownership interests owned by a nonprofit entity are considered owned by a single
7.10
owner;
7.11
(3) ownership interests owned by all individuals in a family are considered held by a
7.12
single owner. For purposes of this clause, "family" means brothers and sisters, including
7.13
half-brothers and half-sisters, a spouse, ancestors, and lineal descendants; and
7.14
(4) if an individual or entity holds an option, warrant, or similar right to purchase an
7.15
ownership interest, the individual or entity is considered to be the owner of those ownership
7.16
interests.
7.17
(c) "Eligible organization" means an organization that opposes covering some or all
7.18
health benefits under section 62Q.522 or 62Q.585 on account of religious objections and
7.19
that is:
7.20
(1) organized as a nonprofit entity and holds itself out to be religious; or
7.21
(2) organized and operates as a closely held for-profit entity, and the organization's
7.22
owners or highest governing body has adopted, under the organization's applicable rules of
7.23
governance and consistent with state law, a resolution or similar action establishing that the
7.24
organization objects to covering some or all health benefits under section 62Q.522 or
7.25
62Q.585 on account of the owners' sincerely held religious beliefs.
7.26
(d) "Exempt organization" means an organization that is organized and operates as a
7.27
nonprofit entity and meets the requirements of section 6033(a)(3)(A)(i) or (iii) of the Internal
7.28
Revenue Code of 1986, as amended.
7.29
Subd. 2. Exemption. (a) An exempt organization is not required to provide coverage
7.30
under section 62Q.522 or 62Q.585 if the exempt organization has religious objections to
7.31
the coverage. An exempt organization that chooses to not provide coverage pursuant to this
7.32
paragraph must notify employees as part of the hiring process and must notify all employees
7.33
at least 30 days before:
7
Article 1 Sec. 8.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
8.1
(1) an employee enrolls in the health plan; or
8.2
(2) the effective date of the health plan, whichever occurs first.
8.3
(b) If the exempt organization provides partial coverage under section 62Q.522 or
8.4
62Q.585, the notice required under paragraph (a) must provide a list of the portions of such
8.5
coverage which the organization refuses to cover.
8.6
Subd. 3. Accommodation for eligible organizations. (a) A health plan established or
8.7
maintained by an eligible organization complies with the coverage requirements of section
8.8
62Q.522 or 62Q.585, with respect to the health benefits identified in the notice under this
8.9
paragraph, if the eligible organization provides notice to any health plan company with
8.10
which the eligible organization contracts that it is an eligible organization and that the
8.11
eligible organization has a religious objection to coverage for all or a subset of the health
8.12
benefits under section 62Q.522 or 62Q.585.
8.13
(b) The notice from an eligible organization to a health plan company under paragraph
8.14
(a) must include: (1) the name of the eligible organization; (2) a statement that it objects to
8.15
coverage for some or all of the health benefits under section 62Q.522 or 62Q.585, including
8.16
a list of the health benefits to which the eligible organization objects, if applicable; and (3)
8.17
the health plan name. The notice must be executed by a person authorized to provide notice
8.18
on behalf of the eligible organization.
8.19
(c) An eligible organization must provide a copy of the notice under paragraph (a) to
8.20
prospective employees as part of the hiring process and to all employees at least 30 days
8.21
before:
8.22
(1) an employee enrolls in the health plan; or
8.23
(2) the effective date of the health plan, whichever occurs first.
8.24
(d) A health plan company that receives a copy of the notice under paragraph (a) with
8.25
respect to a health plan established or maintained by an eligible organization must, for all
8.26
future enrollments in the health plan:
8.27
(1) expressly exclude coverage for those health benefits identified in the notice under
8.28
paragraph (a) from the health plan; and
8.29
(2) provide separate payments for any health benefits required to be covered under
8.30
section 62Q.522 or 62Q.585 for enrollees as long as the enrollee remains enrolled in the
8.31
health plan.
8
Article 1 Sec. 8.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
9.1
(e) The health plan company must not impose any cost-sharing requirements, including
9.2
co-pays, deductibles, or coinsurance, or directly or indirectly impose any premium, fee, or
9.3
other charge for the health benefits under section 62Q.522 on the enrollee. The health plan
9.4
company must not directly or indirectly impose any premium, fee, or other charge for the
9.5
health benefits under section 62Q.522 or 62Q.585 on the eligible organization or health
9.6
plan.
9.7
(f) On January 1, 2024, and every year thereafter a health plan company must notify the
9.8
commissioner, in a manner determined by the commissioner, of the number of eligible
9.9
organizations granted an accommodation under this subdivision.
9.10
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health
9.11
plans offered, sold, issued, or renewed on or after that date.
9.12
Sec. 9. Minnesota Statutes 2022, section 65A.29, is amended by adding a subdivision to
9.13
read:
9.14
Subd. 8a. Losses resulting from lightning, wind, rain, or hail. (a) An insurer may
9.15
refuse to renew a policy of homeowner's insurance if the insured had three or more covered
9.16
losses each over $10,000 resulting from lightning, wind, rain, or hail during the five-year
9.17
period immediately preceding the refusal to renew.
9.18
(b) If an insurer elects to not renew a policy of homeowner's insurance under paragraph
9.19
(a), the insurer must provide the insured 60 days' advance notice of the insurer's intention
9.20
to make the election. The notice must specify the reason for the refusal to renew and must
9.21
inform the insured of the possibility of coverage through the Minnesota FAIR plan under
9.22
sections 65A.31 to 65A.42.
9.23
(c) An insurer writing homeowner's insurance for property located in Minnesota must
9.24
annually report to the commissioner the number of policies not renewed under paragraph
9.25
(a).
9.26
(d) An insurer may, at the end of a homeowner's insurance policy period, offer to reduce
9.27
the policy's coverage by revising the policy's deductible to a percentage-based deductible
9.28
solely for losses resulting from lightning, wind, rain, or hail without complying with the
9.29
nonrenewal rules in Minnesota Rules, chapter 2880, provided:
9.30
(1) the percentage-based deductible only obligates the insured to pay that percentage of
9.31
the cost, at the time any loss or damage occurs, to actually repair, rebuild, or replace the
9.32
insured property;
9
Article 1 Sec. 9.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
10.1
(2) the insurer provides the insured at least 60 days' advance notice of the insurer's offer
10.2
to revise the deductible in a manner consistent with this section;
10.3
(3) the 60 days' notice the insurer provides to the insured clearly and fully discloses in
10.4
plain language all details pertaining to the revised deductible, including an example of how
10.5
the deductible works in the event of an insured loss resulting from lightning, wind, rain, or
10.6
hail with the percentage the consumer is obligated to pay when applied to the cost of repair;
10.7
and
10.8
(4) the insurer offers the insured at least one reasonable flat-dollar deductible option
10.9
that does not exceed the highest percentage deductible policy in lieu of the percentage-based
10.10
deductible. The offer under this clause must be included in the 60 days' notice the insurer
10.11
provides to the insured. The 60 days' notice must also clearly and conspicuously disclose
10.12
that if the insured fails to elect the percentage-based deductible but renews the policy, the
10.13
policy's deductible is the flat-dollar deductible.
10.14
Sec. 10. [65A.3025] CONDOMINIUM AND TOWNHOUSE POLICIES;
10.15
COORDINATION OF BENEFITS FOR LOSS ASSESSMENT.
10.16
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
10.17
the meanings given.
10.18
(b) "Assessable loss" means a covered loss under the terms of a policy governed by
10.19
subdivision 2, paragraph (a) or (b).
10.20
(c) "Association" has the meaning given in section 515B.1-103, clause (4).
10.21
(d) "Unit owner" has the meaning given in section 515B.1-103, clause (37).
10.22
Subd. 2. Loss assessment. (a) If a loss assessment is charged by an association to an
10.23
individual unit owner, the insurance policy in force at the time of the assessable loss must
10.24
pay the loss assessment, subject to the limits provided in the policy, notwithstanding any
10.25
policy provisions regarding when loss assessment coverage accrues, and subject to any
10.26
other terms, conditions, and exclusions in the policy, if the following conditions are met:
10.27
(1) the unit owner at the time of the assessable loss is the owner of the property listed
10.28
on the policy at the time the loss assessment is charged;
10.29
(2) the insurance policy in force at the time of the assessable loss provides loss assessment
10.30
coverage; and
10.31
(3) a loss assessment and the event or occurrence which triggers a loss assessment shall
10.32
be considered a single loss for underwriting and rating purposes.
10
Article 1 Sec. 10.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
11.1
(b) If a loss assessment is charged by an association to an individual unit owner, the
11.2
insurance policy in force at the time the loss assessment is charged must pay the assessment,
11.3
subject to the limits provided in the policy, notwithstanding any policy provisions regarding
11.4
when loss assessment coverage accrues, and subject to any other terms, conditions, and
11.5
exclusions in the policy, if the following conditions are met:
11.6
(1) the unit owner at the time of the loss assessment is charged is different than the unit
11.7
owner at the time of the assessable loss; and
11.8
(2) the insurance policy in force at the time the loss assessment is charged provides loss
11.9
assessment coverage.
11.10
(c) For a loss assessment under paragraph (b), an insurer may require evidence
11.11
documenting that the transfer of ownership occurred prior to the assessment before the
11.12
insurer affords coverage.
11.13
Sec. 11. Minnesota Statutes 2022, section 67A.01, subdivision 2, is amended to read:
11.14
Subd. 2. Authorized territory. (a) A township mutual fire insurance company may be
11.15
authorized to write business in up to nine adjoining counties in the aggregate at the same
11.16
time. If policyholder surplus is at least $500,000 as reported in the company's last annual
11.17
financial statement filed with the commissioner, the company may, if approval has been
11.18
granted by the commissioner, be authorized to write business in ten or more counties in the
11.19
aggregate at the same time, subject to a maximum of 20 30 adjoining counties, in accordance
11.20
with the following schedule:
Surplus Requirement
11.21
Number of Counties
$500,000
11.22
10
600,000
11.23
11
700,000
11.24
12
800,000
11.25
13
900,000
11.26
14
1,000,000
11.27
15
1,100,000
11.28
16
1,200,000
11.29
17
1,300,000
11.30
18
1,400,000
11.31
19
1,500,000
11.32
20
1,600,000
11.33
21
1,700,000
11.34
22
11
Article 1 Sec. 11.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
1,800,000
12.1
23
1,900,000
12.2
24
2,000,000
12.3
25
2,100,000
12.4
26
2,200,000
12.5
27
2,300,000
12.6
28
2,400,000
12.7
29
2,500,000
12.8
30
12.9
(b) In the case of a merger of two or more companies having contiguous territories, the
12.10
surviving company in the merger may transact business in the entire territory of the merged
12.11
companies; however, the territory of the surviving company in the merger may not be larger
12.12
than 20 must be approved by the commissioner and may not be in excess of 30 counties,
12.13
provided the company complies with the additional reporting requirements stipulated in
12.14
paragraph (g).
12.15
(c) Notwithstanding paragraph (b), a policy issued by a constituent company to the
12.16
merger may remain effective, without respect to the policy being issued in a county outside
12.17
the territory of the surviving company, until the policy:
12.18
(1) expires or is terminated by the policy's terms; or
12.19
(2) is terminated or annulled and canceled in accordance with section 67A.18.
12.20
The surviving company must not amend or renew a policy issued in a county outside the
12.21
surviving company's territory.
12.22
(c) (d) A township mutual fire insurance company may write new and renewal insurance
12.23
on property in cities within the company's authorized territory having a population less than
12.24
25,000. A township mutual fire insurance company may continue to write new and renewal
12.25
insurance once the population increases to 25,000 or greater provided that amended and
12.26
restated articles are filed with the commissioner along with a certification that such city's
12.27
population has increased to 25,000 or greater.
12.28
(d) (e) A township mutual fire insurance company may write new and renewal insurance
12.29
on property in cities within the company's authorized territory with a population of 25,000
12.30
or greater, but less than 150,000, if approval has been granted by the commissioner. No
12.31
township mutual fire insurance company shall insure any property in cities with a population
12.32
of 150,000 or greater.
12.33
(e) (f) If a township mutual fire insurance company provides evidence to the
12.34
commissioner that the company had insurance in force on December 31, 2007, in a city
12
Article 1 Sec. 11.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
13.1
within the company's authorized territory with a population of 25,000 or greater, but less
13.2
than 150,000, the company may write new and renewal insurance on property in that city
13.3
provided that the company files amended and restated articles by July 31, 2010, naming
13.4
that city.
13.5
(g) If a surviving company of a merger writes in more than 20 counties, that company
13.6
must report to the commissioner the following items on a quarterly basis:
13.7
(1) income statement;
13.8
(2) balance sheet;
13.9
(3) insurance in force; and
13.10
(4) number of policies.
13.11
Sec. 12. Minnesota Statutes 2022, section 67A.14, subdivision 1, is amended to read:
13.12
Subdivision 1. Kinds of property; property outside authorized territory. (a) Township
13.13
mutual fire insurance companies may insure qualified property. Qualified property means
13.14
dwellings, household goods, appurtenant structures, farm buildings, farm personal property,
13.15
churches, church personal property, county fair buildings, community and township meeting
13.16
halls and their usual contents.
13.17
(b) Township mutual fire insurance companies may extend coverage to include an
13.18
insured's secondary property if the township mutual fire insurance company covers qualified
13.19
property belonging to the insured. Secondary property means any real or personal property
13.20
that is not considered qualified property for a township mutual fire insurance company to
13.21
cover under this chapter. The maximum amount of coverage that a township mutual fire
13.22
insurance company may write for secondary property is 25 percent of the total limit of
13.23
liability of the policy issued to an insured covering the qualified property.
13.24
(c) A township mutual fire insurance company may insure any real or personal property,
13.25
including qualified or secondary property, subject to the limitations in subdivision 1,
13.26
paragraph (b), located outside the limits of the territory in which the company is authorized
13.27
by its certificate or articles of incorporation to transact business, if the company is already
13.28
covering qualified property belonging to the insured, inside the limits of the company's
13.29
territory. For purposes of this paragraph, qualified property inside the limits of the company's
13.30
territory includes qualified property outside the territory of the surviving company to a
13.31
merger for the duration of the policy insuring the qualified property if the qualified property
13.32
was qualified property inside the territory of a constituent company to the merger.
13
Article 1 Sec. 12.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
14.1
(d) A township mutual fire insurance company may insure property temporarily outside
14.2
of the authorized territory of the township mutual fire insurance company.
14.3
Sec. 13. Minnesota Statutes 2022, section 72A.20, subdivision 13, is amended to read:
14.4
Subd. 13. Refusal to renew. (a) Refusing to renew, declining to offer or write, or charging
14.5
differential rates for an equivalent amount of homeowner's insurance coverage, as defined
14.6
by section 65A.27, for property located in a town or statutory or home rule charter city, in
14.7
which the insurer offers to sell or writes homeowner's insurance, solely because:
14.8
(a) (1) of the geographic area in which the property is located;
14.9
(b) (2) of the age of the primary structure sought to be insured;
14.10
(c) (3) the insured or prospective insured was denied coverage of the property by another
14.11
insurer, whether by cancellation, nonrenewal or declination to offer coverage, for a reason
14.12
other than those specified in section 65A.01, subdivision 3a, clauses (a) to (e);
14.13
(d) (4) the property of the insured or prospective insured has been insured under the
14.14
Minnesota FAIR Plan Act, shall constitute an unfair method of competition and an unfair
14.15
and deceptive act or practice; or
14.16
(e) (5) the insured has inquired about coverage for a hypothetical claim or has made an
14.17
inquiry to the insured's agent regarding a potential claim.
14.18
This subdivision prohibits an insurer from filing or charging different rates for different
14.19
zip code areas within the same town or statutory or home rule charter city.
14.20
(b) An insurer must not establish more than one geographical rating territory within the
14.21
same city of the first class or city of the second class that has 60,000 or more inhabitants.
14.22
For purposes of compliance with this paragraph: (1) the population of the cities subject to
14.23
this paragraph is determined by the preceding United States decennial census, as reported
14.24
by the Minnesota State Demographic Center; and (2) the territorial boundaries of the cities
14.25
subject to this paragraph are the boundaries as the boundaries exist on December 31 in years
14.26
ending in 0 or 5, whichever is more recent. Any revisions to the rating manual resulting
14.27
from a change in the territorial boundaries or population must be filed with the commissioner
14.28
within 120 days of the date the data are reported.
14.29
(c) This subdivision shall not prohibit the insurer from applying underwriting or rating
14.30
standards which the insurer applies generally in all other locations in the state and which
14.31
are not specifically prohibited by clauses (a) to (e). Such underwriting or rating standards
14.32
shall specifically include but not be limited to standards based upon the proximity of the
14
Article 1 Sec. 13.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
15.1
insured property to an extraordinary hazard or based upon the quality or availability of fire
15.2
protection services or based upon the density or concentration of the insurer's risks. Clause
15.3
(b) shall not prohibit the use of rating standards based upon the age of the insured structure's
15.4
plumbing, electrical, heating or cooling system or other part of the structure, the age of
15.5
which affects the risk of loss. Any insurer's failure to comply with section 65A.29,
15.6
subdivisions 2 to 4, either (1) by failing to give an insured or applicant the required notice
15.7
or statement or (2) by failing to state specifically a bona fide underwriting or other reason
15.8
for the refusal to write shall create a presumption that the insurer has violated this subdivision.
15.9
Sec. 14. Minnesota Statutes 2022, section 325E.66, subdivision 1, is amended to read:
15.10
Subdivision 1. Payment or rebate of insurance deductible Residential contractor;
15.11
prohibited insurance practices. (a) A residential contractor providing home repair or
15.12
improvement services to be paid by an insured from the proceeds of a property or casualty
15.13
insurance policy shall not,:
15.14
(1) as an inducement to the sale or provision of goods or services to an insured, advertise
15.15
or promise to pay, directly or indirectly, all or part of any applicable insurance deductible
15.16
or offer to compensate an insured for providing any service to the insured. The prohibition
15.17
under this clause includes but is not limited to offering compensation in exchange for:
15.18
(i) allowing the residential contractor to conduct an inspection of the covered property;
15.19
(ii) making an insurance claim for damage to the covered property; or
15.20
(iii) referring the residential contractor's services to others when insurance proceeds are
15.21
payable;
15.22
(2) provide an insured with an agreement authorizing repairs without also providing a
15.23
good faith estimate of the itemized and detailed cost of services and materials undertaken
15.24
pursuant to a property and casualty claim; or
15.25
(3) interpret policy provisions or advise an insured regarding coverages or duties under
15.26
the insured's policy, or adjust a property insurance claim on behalf of the insured, unless
15.27
the contractor has a license as a public adjuster under chapter 72B.
15.28
(b) If a residential contractor violates this section, the insurer to whom the insured
15.29
tendered the claim shall not be obligated to consider the estimate prepared by the residential
15.30
contractor. The residential contractor must provide a written notification of the requirements
15.31
of this section with its initial estimate. The adjuster or insurer must provide a written
15.32
notification of the requirements of this section in the initial estimate relating to the claim.
15
Article 1 Sec. 14.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
16.1
(c) For purposes of this section, "residential contractor" means a residential roofer, as
16.2
defined in section 326B.802, subdivision 14; a residential building contractor, as defined
16.3
in section 326B.802, subdivision 11; and a residential remodeler, as defined in section
16.4
326B.802, subdivision 12.
16.5
Sec. 15. Minnesota Statutes 2022, section 471.6161, subdivision 8, is amended to read:
16.6
Subd. 8. School districts; group health insurance coverage. (a) Any entity providing
16.7
group health insurance coverage to a school district must provide the school district with
16.8
school district-specific nonidentifiable aggregate claims records for the most recent 24
16.9
months within 30 days of the request.
16.10
(b) School districts shall request proposals for group health insurance coverage as
16.11
provided in subdivision 2 from a minimum of three potential sources of coverage. One of
16.12
these requests must go to an administrator governed by chapter 43A. Entities referenced in
16.13
subdivision 1 must respond to requests for proposals received directly from a school district.
16.14
School districts that are self-insured must also follow these provisions, except as provided
16.15
in paragraph (f) (g). School districts must make requests for proposals at least 150 days
16.16
prior to the expiration of the existing contract but not more frequently than once every 24
16.17
months. The request for proposals must include the most recently available 24 months of
16.18
nonidentifiable aggregate claims data. The request for proposals must be publicly released
16.19
at or prior to its release to potential sources of coverage.
16.20
(c) School district contracts for group health insurance must not be longer than two years
16.21
unless the exclusive representative of the largest employment group and the school district
16.22
agree otherwise.
16.23
(d) All proposals for group health insurance coverage, including coverage offered under
16.24
chapters 43A and 123A, must include the information described in this paragraph for each
16.25
separate health plan being proposed. The information must be on the first page of each
16.26
proposal in a summary section and in a separate tabular format. The information must use
16.27
a uniform set of assumptions, including but not limited to enrollment projections by plan,
16.28
enrollment projections by tier, and number of members. Proposals that do not include all
16.29
of the following information are not eligible to be selected by a school district. All proposals
16.30
must include the:
16.31
(1) structure of the health plan, designating either exclusive provider organization,
16.32
preferred provider organization, point of service, or health maintenance organization;
16
Article 1 Sec. 15.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
17.1
(2) health plan actuarial value, using the minimum value calculator described in Code
17.2
of Federal Regulations, title 45, section 156.145;
17.3
(3) type of provider network, designating either narrow network, broad network, narrow
17.4
tiered network, or broad tiered network;
17.5
(4) agent or broker commissions paid as part of the premium, as requested by the proposal,
17.6
displayed in dollars per member per month;
17.7
(5) total premium dollars in the first 12-month period of the quote, not including
17.8
commissions;
17.9
(6) total premium dollars, per member per month, not including commissions; and
17.10
(7) number of expected members used for the premium quote calculation.
17.11
(d) (e) All initial proposals shall be sealed upon receipt until they are all opened no less
17.12
than 90 days prior to the plan's renewal date in the presence of up to three representatives
17.13
selected by the exclusive representative of the largest group of employees. Section 13.591,
17.14
subdivision 3, paragraph (b), applies to data in the proposals. The representatives of the
17.15
exclusive representative must maintain the data according to this classification and are
17.16
subject to the remedies and penalties under sections 13.08 and 13.09 for a violation of this
17.17
requirement.
17.18
(e) (f) A school district, in consultation with the same representatives referenced in
17.19
paragraph (d) (e), may continue to negotiate with any entity that submitted a proposal under
17.20
paragraph (d) (e) in order to reduce costs or improve services under the proposal. Following
17.21
the negotiations any entity that submitted an initial proposal may submit a final proposal
17.22
incorporating the negotiations, which is due no less than 75 days prior to the plan's renewal
17.23
date. All the final proposals submitted must be opened at the same time in the presence of
17.24
up to three representatives selected by the exclusive representative of the largest group of
17.25
employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), following the
17.26
opening of the final proposals, all the proposals, including any made under paragraph (d)
17.27
(e), and other data submitted in connection with the proposals are public data. The school
17.28
district may choose from any of the initial or final proposals without further negotiations
17.29
and in accordance with subdivision 5, but not sooner than 15 days after the proposals become
17.30
public data.
17.31
(f) (g) School districts that are self-insured shall follow all of the requirements of this
17.32
section, except that:
17
Article 1 Sec. 15.
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(1) their requests for proposals may be for third-party administrator services, where
18.2
applicable;
18.3
(2) these requests for proposals must be from a minimum of three different sources,
18.4
which may include both entities referenced in subdivision 1 and providers of third-party
18.5
administrator services;
18.6
(3) for purposes of fulfilling the requirement to request a proposal for group insurance
18.7
coverage from an administrator governed by chapter 43A, self-insured districts are not
18.8
required to include in the request for proposal the coverage to be provided;
18.9
(4) a district that is self-insured on or before the date of enactment, or that is self-insured
18.10
with more than 1,000 insured lives, or a district in which the school board adopted a motion
18.11
on or before May 14, 2014, to approve a self-insured health care plan to be effective July
18.12
1, 2014, may, but need not, request a proposal from an administrator governed by chapter
18.13
43A;
18.14
(5) requests for proposals must be sent to providers no less than 90 days prior to the
18.15
expiration of the existing contract; and
18.16
(6) proposals must be submitted at least 60 days prior to the plan's renewal date and all
18.17
proposals shall be opened at the same time and in the presence of the exclusive representative,
18.18
where applicable.
18.19
(g) (h) Nothing in this section shall restrict the authority granted to school district boards
18.20
of education by section 471.59, except that districts will not be considered self-insured for
18.21
purposes of this subdivision solely through participation in a joint powers arrangement.
18.22
(h) (i) An entity providing group health insurance to a school district under a multiyear
18.23
contract must give notice of any rate or plan design changes applicable under the contract
18.24
at least 90 days before the effective date of any change. The notice must be given to the
18.25
school district and to the exclusive representatives of employees.
18.26
Sec. 16. Minnesota Statutes 2022, section 471.617, subdivision 2, is amended to read:
18.27
Subd. 2. Jointly. Any two or more statutory or home rule charter cities, counties, school
18.28
districts, or instrumentalities thereof which together have more than 100 employees may
18.29
jointly self-insure for any employee health benefits including long-term disability, but not
18.30
for employee life benefits, subject to the same requirements as an individual self-insurer
18.31
under subdivision 1. Self-insurance pools under this section are subject to section 62L.045.
18.32
A self-insurance pool established and operated by one or more service cooperatives governed
18.33
by section 123A.21 to provide coverage described in this subdivision qualifies under this
18
Article 1 Sec. 16.
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subdivision, but the individual school district members of such a pool shall not be considered
19.2
to be self-insured for purposes of section 471.6161, subdivision 8, paragraph (f) (g). The
19.3
commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or
19.4
guidelines for the operation and administration of self-insurance pools.
19.5
Sec. 17. REPEALER.
19.6
(a) Minnesota Statutes 2022, section 332.3351, is repealed.
19.7
(b) Minnesota Statutes 2023 Supplement, section 62Q.522, subdivisions 3 and 4, are
19.8
repealed.
19.9
EFFECTIVE DATE. Paragraph (b) is effective January 1, 2025, and applies to health
19.10
plans offered, sold, issued, or renewed on or after that date.
19.11
ARTICLE 2
19.12
FINANCIAL INSTITUTIONS
19.13
Section 1. [46A.01] DEFINITIONS.
19.14
Subdivision 1. Terms. For the purposes of this chapter, the terms defined in this section
19.15
have the meanings given them.
19.16
Subd. 2. Authorized user. "Authorized user" means any employee, contractor, agent,
19.17
or other person who: (1) participates in a financial institution's business operations; and (2)
19.18
is authorized to access and use any of the financial institution's information systems and
19.19
data.
19.20
Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce.
19.21
Subd. 4. Consumer. (a) "Consumer" means an individual who obtains or has obtained
19.22
from a financial institution a financial product or service that is used primarily for personal,
19.23
family, or household purposes, or is used by the individual's legal representative. Consumer
19.24
includes but is not limited to an individual who:
19.25
(1) applies to a financial institution for credit for personal, family, or household purposes,
19.26
regardless of whether the credit is extended;
19.27
(2) provides nonpublic personal information to a financial institution in order to obtain
19.28
a determination whether the individual qualifies for a loan used primarily for personal,
19.29
family, or household purposes, regardless of whether the loan is extended;
19.30
(3) provides nonpublic personal information to a financial institution in connection with
19.31
obtaining or seeking to obtain financial, investment, or economic advisory services, regardless
19
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of whether the financial institution establishes a continuing advisory relationship with the
20.2
individual; or
20.3
(4) has a loan for personal, family, or household purposes in which the financial institution
20.4
has ownership or servicing rights, even if the financial institution or one or more other
20.5
institutions that hold ownership or servicing rights in conjunction with the financial institution
20.6
hires an agent to collect on the loan.
20.7
(b) Consumer does not include an individual who:
20.8
(1) is a consumer of another financial institution that uses a different financial institution
20.9
to act solely as an agent for, or provide processing or other services to, the consumer's
20.10
financial institution;
20.11
(2) designates a financial institution solely for the purposes to act as a trustee for a trust;
20.12
(3) is the beneficiary of a trust for which the financial institution serves as trustee; or
20.13
(4) is a participant or a beneficiary of an employee benefit plan that the financial
20.14
institution sponsors or for which the financial institution acts as a trustee or fiduciary.
20.15
Subd. 5. Continuing relationship. (a) "Continuing relationship" means a consumer:
20.16
(1) has a credit or investment account with a financial institution;
20.17
(2) obtains a loan from a financial institution;
20.18
(3) purchases an insurance product from a financial institution;
20.19
(4) holds an investment product through a financial institution, including but not limited
20.20
to when the financial institution acts as a custodian for securities or for assets in an individual
20.21
retirement arrangement;
20.22
(5) enters into an agreement or understanding with a financial institution whereby the
20.23
financial institution undertakes to arrange or broker a home mortgage loan, or credit to
20.24
purchase a vehicle, for the consumer;
20.25
(6) enters into a lease of personal property on a nonoperating basis with a financial
20.26
institution;
20.27
(7) obtains financial, investment, or economic advisory services from a financial
20.28
institution for a fee;
20.29
(8) becomes a financial institution's client to obtain tax preparation or credit counseling
20.30
services from the financial institution;
20
Article 2 Section 1.
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(9) obtains career counseling while: (i) seeking employment with a financial institution
21.2
or the finance, accounting, or audit department of any company; or (ii) employed by a
21.3
financial institution or department of any company;
21.4
(10) is obligated on an account that a financial institution purchases from another financial
21.5
institution, regardless of whether the account is in default when purchased, unless the
21.6
financial institution does not locate the consumer or attempt to collect any amount from the
21.7
consumer on the account;
21.8
(11) obtains real estate settlement services from a financial institution; or
21.9
(12) has a loan for which a financial institution owns the servicing rights.
21.10
(b) Continuing relationship does not include situations where:
21.11
(1) the consumer obtains a financial product or service from a financial institution only
21.12
in isolated transactions, including but not limited to: (i) using a financial institution's
21.13
automated teller machine to withdraw cash from an account at another financial institution;
21.14
(ii) purchasing a money order from a financial institution; (iii) cashing a check with a
21.15
financial institution; or (iv) making a wire transfer through a financial institution;
21.16
(2) a financial institution sells the consumer's loan and does not retain the rights to service
21.17
the loan;
21.18
(3) a financial institution sells the consumer airline tickets, travel insurance, or traveler's
21.19
checks in isolated transactions;
21.20
(4) the consumer obtains onetime personal or real property appraisal services from a
21.21
financial institution; or
21.22
(5) the consumer purchases checks for a personal checking account from a financial
21.23
institution.
21.24
Subd. 6. Customer. "Customer" means a consumer who has a customer relationship
21.25
with a financial institution.
21.26
Subd. 7. Customer information. "Customer information" means any record containing
21.27
nonpublic personal information about a financial institution's customer, whether the record
21.28
is in paper, electronic, or another form, that is handled or maintained by or on behalf of the
21.29
financial institution or the financial institution's affiliates.
21.30
Subd. 8. Customer relationship. "Customer relationship" means a continuing relationship
21.31
between a consumer and a financial institution under which the financial institution provides
21
Article 2 Section 1.
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to the consumer one or more financial products or services that are used primarily for
22.2
personal, family, or household purposes.
22.3
Subd. 9. Encryption. "Encryption" means the transformation of data into a format that
22.4
results in a low probability of assigning meaning without the use of a protective process or
22.5
key, consistent with current cryptographic standards and accompanied by appropriate
22.6
safeguards for cryptographic key material.
22.7
Subd. 10. Federally insured depository financial institution. "Federally insured
22.8
depository financial institution" means a bank, credit union, savings and loan association,
22.9
trust company, savings association, savings bank, industrial bank, or industrial loan company
22.10
organized under the laws of the United States or any state of the United States, when the
22.11
bank, credit union, savings and loan association, trust company, savings association, savings
22.12
bank, industrial bank, or industrial loan company has federally insured deposits.
22.13
Subd. 11. Financial product or service. "Financial product or service" means any
22.14
product or service that a financial holding company could offer by engaging in a financial
22.15
activity under section 4(k) of the Bank Holding Company Act of 1956, United States Code,
22.16
title 12, section 1843(k). Financial product or service includes a financial institution's
22.17
evaluation or brokerage of information that the financial institution collects in connection
22.18
with a request or an application from a consumer for a financial product or service.
22.19
Subd. 12. Financial institution. "Financial institution" means a consumer small loan
22.20
lender under section 47.60, a person owning or maintaining electronic financial terminals
22.21
under section 47.62, a trust company under chapter 48A, a loan and thrift company under
22.22
chapter 53, a currency exchange under chapter 53A, a money transmitter under chapter 53B,
22.23
a sales finance company under chapter 53C, a regulated loan lender under chapter 56, a
22.24
residential mortgage originator or servicer under chapter 58, a student loan servicer under
22.25
chapter 58B, a credit service organization under section 332.54, a debt management service
22.26
provider or person providing debt management services under chapter 332A, or a debt
22.27
settlement service provider or person providing debt settlement services under chapter 332B.
22.28
Subd. 13. Information security program. "Information security program" means the
22.29
administrative, technical, or physical safeguards a financial institution uses to access, collect,
22.30
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle customer
22.31
information.
22.32
Subd. 14. Information system. "Information system" means a discrete set of electronic
22.33
information resources organized to collect, process, maintain, use, share, disseminate, or
22.34
dispose of electronic information, as well as any specialized system, including but not
22
Article 2 Section 1.
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23.1
limited to industrial process controls systems, telephone switching and private branch
23.2
exchange systems, and environmental controls systems, that contains customer information
23.3
or that is connected to a system that contains customer information.
23.4
Subd. 15. Multifactor authentication. "Multifactor authentication" means authentication
23.5
through verification of at least two of the following factors:
23.6
(1) knowledge factors, including but not limited to a password;
23.7
(2) possession factors, including but not limited to a token; or
23.8
(3) inherence factors, including but not limited to biometric characteristics.
23.9
Subd. 16. Nonpublic personal information. (a) "Nonpublic personal information"
23.10
means:
23.11
(1) personally identifiable financial information; or
23.12
(2) any list, description, or other grouping of consumers, including publicly available
23.13
information pertaining to the list, description, or other grouping of consumers, that is derived
23.14
using personally identifiable financial information that is not publicly available.
23.15
(b) Nonpublic personal information includes but is not limited to any list of individuals'
23.16
names and street addresses that is derived in whole or in part using personally identifiable
23.17
financial information that is not publicly available, including account numbers.
23.18
(c) Nonpublic personal information does not include:
23.19
(1) publicly available information, except as included on a list described in paragraph
23.20
(a), clause (2);
23.21
(2) any list, description, or other grouping of consumers, including publicly available
23.22
information pertaining to the list, description, or other grouping of consumers, that is derived
23.23
without using any personally identifiable financial information that is not publicly available;
23.24
or
23.25
(3) any list of individuals' names and addresses that contains only publicly available
23.26
information, is not derived in whole or in part using personally identifiable financial
23.27
information that is not publicly available, and is not disclosed in a manner that indicates
23.28
that any individual on the list is the financial institution's consumer.
23.29
Subd. 17. Notification event. "Notification event" means the acquisition of unencrypted
23.30
customer information without the authorization of the individual to which the information
23.31
pertains. Customer information is considered unencrypted for purposes of this subdivision
23.32
if the encryption key was accessed by an unauthorized person. Unauthorized acquisition is
23
Article 2 Section 1.
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REVISOR
RSI
24.1
presumed to include unauthorized access to unencrypted customer information unless the
24.2
financial institution has reliable evidence showing that there has not been, or could not
24.3
reasonably have been, unauthorized acquisition of customer information.
24.4
Subd. 18. Penetration testing. "Penetration testing" means a test methodology in which
24.5
assessors attempt to circumvent or defeat the security features of an information system by
24.6
attempting to penetrate databases or controls from outside or inside a financial institution's
24.7
information systems.
24.8
Subd. 19. Personally identifiable financial information. (a) "Personally identifiable
24.9
financial information" means any information:
24.10
(1) a consumer provides to a financial institution to obtain a financial product or service;
24.11
(2) about a consumer resulting from any transaction involving a financial product or
24.12
service between a financial institution and a consumer; or
24.13
(3) a financial institution otherwise obtains about a consumer in connection with providing
24.14
a financial product or service to the customer.
24.15
(b) Personally identifiable financial information includes:
24.16
(1) information a consumer provides to a financial institution on an application to obtain
24.17
a loan, credit card, or other financial product or service;
24.18
(2) account balance information, payment history, overdraft history, and credit or debit
24.19
card purchase information;
24.20
(3) the fact that an individual is or has been a financial institution's customer or has
24.21
obtained a financial product or service from the financial institution;
24.22
(4) any information about a financial institution's consumer, if the information is disclosed
24.23
in a manner that indicates that the individual is or has been the financial institution's
24.24
consumer;
24.25
(5) any information that a consumer provides to a financial institution or that a financial
24.26
institution or a financial institution's agent otherwise obtains in connection with collecting
24.27
on or servicing a credit account;
24.28
(6) any information a financial institution collects through an Internet information
24.29
collecting device from a web server; and
24.30
(7) information from a consumer report.
24.31
(c) Personally identifiable financial information does not include:
24
Article 2 Section 1.
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REVISOR
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25.1
(1) a list of customer names and addresses for an entity that is not a financial institution;
25.2
and
25.3
(2) information that does not identify a consumer, including but not limited to aggregate
25.4
information or blind data that does not contain personal identifiers, including account
25.5
numbers, names, or addresses.
25.6
Subd. 20. Publicly available information. (a) "Publicly available information" means
25.7
any information that a financial institution has a reasonable basis to believe is lawfully made
25.8
available to the general public from:
25.9
(1) federal, state, or local government records;
25.10
(2) widely distributed media; or
25.11
(3) disclosures to the general public that are required under federal, state, or local law.
25.12
(b) Publicly available information includes but is not limited to:
25.13
(1) with respect to government records, information in government real estate records
25.14
and security interest filings; and
25.15
(2) with respect to widely distributed media, information from a telephone book, a
25.16
television or radio program, a newspaper, or a website that is available to the general public
25.17
on an unrestricted basis. A website is not restricted merely because an Internet service
25.18
provider or a site operator requires a fee or a password, provided that access is available to
25.19
the general public.
25.20
(c) For purposes of this subdivision, a financial institution has a reasonable basis to
25.21
believe that information is lawfully made available to the general public if the financial
25.22
institution has taken steps to determine: (1) that the information is of the type that is available
25.23
to the general public; and (2) whether an individual can direct that the information not be
25.24
made available to the general public and, if so, that the financial institution's consumer has
25.25
not directed that the information not be made available to the general public. A financial
25.26
institution has a reasonable basis to believe that mortgage information is lawfully made
25.27
available to the general public if the financial institution determines the information is of
25.28
the type included on the public record in the jurisdiction where the mortgage would be
25.29
recorded. A financial institution has a reasonable basis to believe that an individual's
25.30
telephone number is lawfully made available to the general public if the financial institution
25.31
has located the telephone number in the telephone book or the consumer has informed the
25.32
financial institution that the telephone number is not unlisted.
25
Article 2 Section 1.
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REVISOR
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26.1
Subd. 21. Qualified individual. "Qualified individual" means the individual designated
26.2
by a financial institution to oversee, implement, and enforce the financial institution's
26.3
information security program.
26.4
Subd. 22. Security event. "Security event" means an event resulting in unauthorized
26.5
access to, or disruption or misuse of: (1) an information system or information stored on an
26.6
information system; or (2) customer information held in physical form.
26.7
Subd. 23. Service provider. "Service provider" means any person or entity that receives,
26.8
maintains, processes, or otherwise is permitted access to customer information through the
26.9
service provider's provision of services directly to a financial institution that is subject to
26.10
this chapter.
26.11
Sec. 2. [46A.02] SAFEGUARDING CUSTOMER INFORMATION; STANDARDS.
26.12
Subdivision 1. Information security program. (a) A financial institution must develop,
26.13
implement, and maintain a comprehensive information security program.
26.14
(b) The information security program must: (1) be written in one or more readily
26.15
accessible parts; and (2) contain administrative, technical, and physical safeguards that are
26.16
appropriate to the financial institution's size and complexity, the nature and scope of the
26.17
financial institution's activities, and the sensitivity of any customer information at issue.
26.18
(c) The information security program must include the elements set forth in section
26.19
46A.03 and must be reasonably designed to achieve the objectives of this chapter, as
26.20
established under subdivision 2.
26.21
Subd. 2. Objectives. The objectives of this chapter are to:
26.22
(1) ensure the security and confidentiality of customer information;
26.23
(2) protect against any anticipated threats or hazards to the security or integrity of
26.24
customer information; and
26.25
(3) protect against unauthorized access to or use of customer information that might
26.26
result in substantial harm or inconvenience to a customer.
26.27
Sec. 3. [46A.03] ELEMENTS.
26.28
Subdivision 1. Generally. In order to develop, implement, and maintain an information
26.29
security program, a financial institution must comply with this section.
26.30
Subd. 2. Qualified individual. (a) A financial institution must designate a qualified
26.31
individual responsible for overseeing, implementing, and enforcing the financial institution's
26
Article 2 Sec. 3.
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REVISOR
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27.1
information security program. The qualified individual may be employed by the financial
27.2
institution, an affiliate, or a service provider.
27.3
(b) If a financial institution designates an individual employed by an affiliate or service
27.4
provider as the financial institution's qualified individual, the financial institution must:
27.5
(1) retain responsibility for complying with this chapter;
27.6
(2) designate a senior member of the financial institution's personnel to be responsible
27.7
for directing and overseeing the qualified individual's activities; and
27.8
(3) require the service provider or affiliate to maintain an information security program
27.9
that protects the financial institution in a manner that complies with the requirements of
27.10
this chapter.
27.11
Subd. 3. Security risk assessment. (a) A financial institution must base the financial
27.12
institution's information security program on a risk assessment that:
27.13
(1) identifies reasonably foreseeable internal and external risks to the security,
27.14
confidentiality, and integrity of customer information that might result in the unauthorized
27.15
disclosure, misuse, alteration, destruction, or other compromise of customer information;
27.16
and
27.17
(2) assesses the sufficiency of any safeguards in place to control the risks identified
27.18
under clause (1).
27.19
(b) The risk assessment must be made in writing and must include:
27.20
(1) criteria to evaluate and categorize identified security risks or threats the financial
27.21
institution faces;
27.22
(2) criteria to assess the confidentiality, integrity, and availability of the financial
27.23
institution's information systems and customer information, including the adequacy of
27.24
existing controls in the context of the identified risks or threats the financial institution
27.25
faces; and
27.26
(3) requirements describing how:
27.27
(i) identified risks are mitigated or accepted based on the risk assessment; and
27.28
(ii) the information security program addresses the risks.
27.29
(c) A financial institution must periodically perform additional risk assessments that:
27.30
(1) reexamine the reasonably foreseeable internal and external risks to the security,
27.31
confidentiality, and integrity of customer information that might result in the unauthorized
27
Article 2 Sec. 3.
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REVISOR
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28.1
disclosure, misuse, alteration, destruction, or other compromise of customer information;
28.2
and
28.3
(2) reassess the sufficiency of any safeguards in place to control the risks identified
28.4
under clause (1).
28.5
Subd. 4. Risk control. A financial institution must design and implement safeguards to
28.6
control the risks the financial institution identifies through the risk assessment under
28.7
subdivision 3, including by:
28.8
(1) implementing and periodically reviewing access controls, including technical and,
28.9
as appropriate, physical controls to:
28.10
(i) authenticate and permit access only to authorized users to protect against the
28.11
unauthorized acquisition of customer information; and
28.12
(ii) limit an authorized user's access to only customer information that the authorized
28.13
user needs to perform the authorized user's duties and functions or, in the case of a customer,
28.14
to limit access to the customer's own information;
28.15
(2) identifying and managing the data, personnel, devices, systems, and facilities that
28.16
enable the financial institution to achieve business purposes in accordance with the business
28.17
purpose's relative importance to business objectives and the financial institution's risk
28.18
strategy;
28.19
(3) protecting by encryption all customer information held or transmitted by the financial
28.20
institution both in transit over external networks and at rest. To the extent a financial
28.21
institution determines that encryption of customer information either in transit over external
28.22
networks or at rest is infeasible, the financial institution may secure the customer information
28.23
using effective alternative compensating controls that have been reviewed and approved by
28.24
the financial institution's qualified individual;
28.25
(4) adopting: (i) secure development practices for in-house developed applications
28.26
utilized by the financial institution to transmit, access, or store customer information; and
28.27
(ii) procedures to evaluate, assess, or test the security of externally developed applications
28.28
the financial institution uses to transmit, access, or store customer information;
28.29
(5) implementing multifactor authentication for any individual that accesses any
28.30
information system, unless the financial institution's qualified individual has approved in
28.31
writing the use of a reasonably equivalent or more secure access control;
28.32
(6) developing, implementing, and maintaining procedures to securely dispose of
28.33
customer information in any format no later than two years after the last date the information
28
Article 2 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
29.1
is used in connection with providing a product or service to the customer to whom the
29.2
information relates, unless: (i) the information is necessary for business operations or for
29.3
other legitimate business purposes; (ii) the information is otherwise required to be retained
29.4
by law or regulation; or (iii) targeted disposal of the information is not reasonably feasible
29.5
due to the manner in which the information is maintained;
29.6
(7) periodically reviewing the financial institution's data retention policy to minimize
29.7
the unnecessary retention of data;
29.8
(8) adopting procedures for change management; and
29.9
(9) implementing policies, procedures, and controls designed to: (i) monitor and log the
29.10
activity of authorized users; and (ii) detect unauthorized access to, use of, or tampering with
29.11
customer information by authorized users.
29.12
Subd. 5. Testing and monitoring. (a) A financial institution must regularly test or
29.13
otherwise monitor the effectiveness of the safeguards' key controls, systems, and procedures,
29.14
including the controls, systems, and procedures that detect actual and attempted attacks on,
29.15
or intrusions into, information systems.
29.16
(b) For information systems, monitoring and testing must include continuous monitoring
29.17
or periodic penetration testing and vulnerability assessments. Absent effective continuous
29.18
monitoring or other systems to detect on an ongoing basis any changes in information
29.19
systems that may create vulnerabilities, a financial institution must conduct:
29.20
(1) annual penetration testing of the financial institution's information systems, based
29.21
on relevant identified risks in accordance with the risk assessment; and
29.22
(2) vulnerability assessments, including systemic scans or information systems reviews
29.23
that are reasonably designed to identify publicly known security vulnerabilities in the
29.24
financial institution's information systems based on the risk assessment, at least every six
29.25
months, whenever a material change to the financial institution's operations or business
29.26
arrangements occurs, and whenever the financial institution knows or has reason to know
29.27
circumstances exist that may have a material impact on the financial institution's information
29.28
security program.
29.29
Subd. 6. Internal policies and procedures. A financial institution must implement
29.30
policies and procedures to ensure that the financial institution's personnel are able to enact
29.31
the financial institution's information security program by:
29.32
(1) providing the financial institution's personnel with security awareness training that
29.33
is updated as necessary to reflect risks identified by the risk assessment;
29
Article 2 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
30.1
(2) utilizing qualified information security personnel employed by the financial institution,
30.2
an affiliate, or a service provider sufficient to manage the financial institution's information
30.3
security risks and to perform or oversee the information security program;
30.4
(3) providing information security personnel with security updates and training sufficient
30.5
to address relevant security risks; and
30.6
(4) verifying that key information security personnel take steps to maintain current
30.7
knowledge of changing information security threats and countermeasures.
30.8
Subd. 7. Provider oversight. A financial institution must oversee service providers by:
30.9
(1) taking reasonable steps to select and retain service providers that are capable of
30.10
maintaining appropriate safeguards for the customer information at issue;
30.11
(2) requiring by contract the financial institution's service providers to implement and
30.12
maintain appropriate safeguards; and
30.13
(3) periodically assessing the financial institution's service providers based on the risk
30.14
the service providers present and the continued adequacy of the service providers' safeguards.
30.15
Subd. 8. Information security program; evaluation; adjustment. A financial institution
30.16
must evaluate and adjust the financial institution's information security program to reflect:
30.17
(1) the results of the testing and monitoring required under subdivision 5; (2) any material
30.18
changes to the financial institution's operations or business arrangements; (3) the results of
30.19
risk assessments performed under subdivision 3, paragraph (c); or (4) any other circumstances
30.20
that the financial institution knows or has reason to know may have a material impact on
30.21
the financial institution's information security program.
30.22
Subd. 9. Incident response plan. A financial institution must establish a written incident
30.23
response plan designed to promptly respond to and recover from any security event materially
30.24
affecting the confidentiality, integrity, or availability of customer information the financial
30.25
institution controls. An incident response plan must address:
30.26
(1) the goals of the incident response plan;
30.27
(2) the internal processes to respond to a security event;
30.28
(3) clear roles, responsibilities, and levels of decision making authority;
30.29
(4) external and internal communications and information sharing;
30.30
(5) requirements to remediate any identified weaknesses in information systems and
30.31
associated controls;
30
Article 2 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
31.1
(6) documentation and reporting regarding security events and related incident response
31.2
activities; and
31.3
(7) evaluation and revision of the incident response plan as necessary after a security
31.4
event.
31.5
Subd. 10. Annual report. (a) A financial institution must require the financial institution's
31.6
qualified individual to report at least annually in writing to the financial institution's board
31.7
of directors or equivalent governing body. If a board of directors or equivalent governing
31.8
body does not exist, the report under this subdivision must be timely presented to a senior
31.9
officer responsible for the financial institution's information security program.
31.10
(b) The report made under this subdivision must include the following information:
31.11
(1) the overall status of the financial institution's information security program, including
31.12
compliance with this chapter and associated administrative rules; and
31.13
(2) material matters related to the financial institution's information security program,
31.14
including but not limited to addressing issues pertaining to: (i) the risk assessment; (ii) risk
31.15
management and control decisions; (iii) service provider arrangements; (iv) testing results;
31.16
(v) security events or violations and management's responses to the security event or
31.17
violation; and (vi) recommendations for changes in the information security program.
31.18
Subd. 11. Business continuity; disaster recovery. A financial institution must establish
31.19
a written plan addressing business continuity and disaster recovery.
31.20
Sec. 4. [46A.04] EXCEPTIONS AND EXEMPTIONS.
31.21
(a) The requirements under section 46A.03, subdivisions 3; 5, paragraph (a); 9; and 10,
31.22
do not apply to financial institutions that maintain customer information concerning fewer
31.23
than 5,000 consumers.
31.24
(b) This chapter does not apply to credit unions or federally insured depository
31.25
institutions.
31.26
Sec. 5. [46A.05] ALTERATION OF FEDERAL REGULATION.
31.27
(a) If an amendment to Code of Federal Regulations, title 16, part 314, results in a
31.28
complete lack of federal regulations in the area, the version of the state requirements in
31.29
effect at the time of the amendment remain in effect for two years from the date the
31.30
amendment becomes effective.
31
Article 2 Sec. 5.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
32.1
(b) During the time period under paragraph (a), the department must adopt replacement
32.2
administrative rules as necessary and appropriate.
32.3
Sec. 6. [46A.06] NOTIFICATION EVENT.
32.4
Subdivision 1. Notification requirement. (a) Upon discovering a notification event as
32.5
described in subdivision 2, if the notification event involves the information of at least 500
32.6
consumers, a financial institution must notify the commissioner without undue delay, but
32.7
no later than 45 days after the date the event is discovered. The notice must be made (1) in
32.8
a format specified by the commissioner, and (2) electronically on a form located on the
32.9
department's website.
32.10
(b) The notice must include:
32.11
(1) the name and contact information of the reporting financial institution;
32.12
(2) a description of the types of information involved in the notification event;
32.13
(3) if possible to determine, the date or date range of the notification event;
32.14
(4) the number of consumers affected or potentially affected by the notification event;
32.15
(5) a general description of the notification event; and
32.16
(6) a statement (i) disclosing whether a law enforcement official has provided the financial
32.17
institution with a written determination indicating that providing notice to the public regarding
32.18
the breach would impede a criminal investigation or cause damage to national security, and
32.19
(ii) if a written determination described under item (i) was provided to the financial
32.20
institution, providing contact information that enables the commissioner to contact the law
32.21
enforcement official. A law enforcement official may request an initial delay of up to 45
32.22
days following the date that notice was provided to the commissioner. The delay may be
32.23
extended for an additional period of up to 60 days if the law enforcement official seeks an
32.24
extension in writing. An additional delay may be permitted only if the commissioner
32.25
determines that public disclosure of a security event continues to impede a criminal
32.26
investigation or cause damage to national security.
32.27
Subd. 2. Notification event treated as discovered. A notification event must be treated
32.28
as discovered on the first day when the event is known to a financial institution. A financial
32.29
institution is deemed to have knowledge of a notification event if the event is known to any
32.30
person, other than the person committing the breach, who is the financial institution's
32.31
employee, officer, or other agent.
32
Article 2 Sec. 6.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
33.1
Sec. 7. [46A.07] COMMISSIONER'S POWERS.
33.2
(a) The commissioner has the power to examine and investigate the affairs of any covered
33.3
financial institution to determine whether the financial institution has been or is engaged in
33.4
any conduct that violates this chapter. This power is in addition to the powers granted to
33.5
the commissioner under section 46.01.
33.6
(b) If the commissioner has reason to believe that a financial institution has been or is
33.7
engaged in conduct in Minnesota that violates this chapter, the commissioner may take
33.8
action necessary or appropriate to enforce this chapter.
33.9
Sec. 8. [46A.08] CONFIDENTIALITY.
33.10
Subdivision 1. Financial institution information. (a) Any documents, materials, or
33.11
other information in the control or possession of the department that are furnished by a
33.12
licensee or a licensee's employee or agent acting on behalf of a financial institution pursuant
33.13
to section 46A.06 or that are obtained by the commissioner in an investigation or examination
33.14
pursuant to section 46A.07: (1) are classified as confidential, protected nonpublic, or both;
33.15
(2) are not subject to subpoena; and (3) are not subject to discovery or admissible in evidence
33.16
in any private civil action.
33.17
(b) Notwithstanding paragraph (a), clauses (1) to (3), the commissioner is authorized to
33.18
use the documents, materials, or other information in the furtherance of any regulatory or
33.19
legal action brought as a part of the commissioner's duties.
33.20
Subd. 2. Certain testimony prohibited. Neither the commissioner nor any person who
33.21
received documents, materials, or other information while acting under the authority of the
33.22
commissioner is permitted or required to testify in a private civil action concerning
33.23
confidential documents, materials, or information subject to subdivision 1.
33.24
Subd. 3. Information sharing. In order to assist in the performance of the commissioner's
33.25
duties under sections 46A.01 to 46A.08, the commissioner may:
33.26
(1) share documents, materials, or other information, including the confidential and
33.27
privileged documents, materials, or information subject to subdivision 1, with other state,
33.28
federal, and international regulatory agencies, with the Conference of State Bank Supervisors,
33.29
the Conference of State Bank Supervisors' affiliates or subsidiaries, and with state, federal,
33.30
and international law enforcement authorities, provided that the recipient agrees in writing
33.31
to maintain the confidentiality and privileged status of the document, material, or other
33.32
information;
33
Article 2 Sec. 8.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
34.1
(2) receive documents, materials, or information, including otherwise confidential and
34.2
privileged documents, materials, or information, from the Conference of State Bank
34.3
Supervisors, the Conference of State Bank Supervisors' affiliates or subsidiaries, and from
34.4
regulatory and law enforcement officials of other foreign or domestic jurisdictions, and
34.5
must maintain as confidential or privileged any document, material, or information received
34.6
with notice or the understanding that the document, material, or information is confidential
34.7
or privileged under the laws of the jurisdiction that is the source of the document, material,
34.8
or information;
34.9
(3) share documents, materials, or other information subject to subdivision 1 with a
34.10
third-party consultant or vendor, provided the consultant agrees in writing to maintain the
34.11
confidentiality and privileged status of the document, material, or other information; and
34.12
(4) enter into agreements governing the sharing and use of information that are consistent
34.13
with this subdivision.
34.14
Subd. 4. No waiver of privilege or confidentiality; information retention. (a) The
34.15
disclosure of documents, materials, or information to the commissioner under this section
34.16
or as a result of sharing as authorized in subdivision 3 does not result in a waiver of any
34.17
applicable privilege or claim of confidentiality in the documents, materials, or information.
34.18
(b) A document, material, or information disclosed to the commissioner under this section
34.19
about a cybersecurity event must be retained and preserved by the financial institution for
34.20
five years.
34.21
Subd. 5. Certain actions public. Nothing in sections 46A.01 to 46A.08 prohibits the
34.22
commissioner from releasing final, adjudicated actions that are open to public inspection
34.23
pursuant to chapter 13 to a database or other clearinghouse service maintained by the
34.24
Conference of State Bank Supervisors, the Conference of State Bank Supervisors' affiliates,
34.25
or the Conference of State Bank Supervisors' subsidiaries.
34.26
Subd. 6. Classification, protection, and use of information by others. Documents,
34.27
materials, or other information in the possession or control of the Conference of State Bank
34.28
Supervisors or a third-party consultant pursuant to sections 46A.01 to 46A.08: (1) are
34.29
classified as confidential, protected nonpublic, and privileged; (2) are not subject to subpoena;
34.30
and (3) are not subject to discovery or admissible in evidence in a private civil action.
34.31
Sec. 9. Minnesota Statutes 2022, section 47.20, subdivision 2, is amended to read:
34.32
Subd. 2. Definitions. For the purposes of this section the terms defined in this subdivision
34.33
have the meanings given them:
34
Article 2 Sec. 9.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
35.1
(1) "Actual closing costs" mean reasonable charges for or sums paid for the following,
35.2
whether or not retained by the mortgagee or lender:
35.3
(a) Any insurance premiums including but not limited to premiums for title insurance,
35.4
fire and extended coverage insurance, flood insurance, and private mortgage insurance, but
35.5
excluding any charges or sums retained by the mortgagee or lender as self-insured retention.
35.6
(b) Abstracting, title examination and search, and examination of public records.
35.7
(c) The preparation and recording of any or all documents required by law or custom
35.8
for closing a conventional or cooperative apartment loan.
35.9
(d) Appraisal and survey of real property securing a conventional loan or real property
35.10
owned by a cooperative apartment corporation of which a share or shares of stock or a
35.11
membership certificate or certificates are to secure a cooperative apartment loan.
35.12
(e) A single service charge, which includes any consideration, not otherwise specified
35.13
herein as an "actual closing cost" paid by the borrower and received and retained by the
35.14
lender for or related to the acquisition, making, refinancing or modification of a conventional
35.15
or cooperative apartment loan, and also includes any consideration received by the lender
35.16
for making a borrower's interest rate commitment or for making a borrower's loan
35.17
commitment, whether or not an actual loan follows the commitment. The term service charge
35.18
does not include forward commitment fees. The service charge shall not exceed one percent
35.19
of the original bona fide principal amount of the conventional or cooperative apartment
35.20
loan, except that in the case of a construction loan, the service charge shall not exceed two
35.21
percent of the original bona fide principal amount of the loan. That portion of the service
35.22
charge imposed because the loan is a construction loan shall be itemized and a copy of the
35.23
itemization furnished the borrower. A lender shall not collect from a borrower the additional
35.24
one percent service charge permitted for a construction loan if it does not perform the service
35.25
for which the charge is imposed or if third parties perform and charge the borrower for the
35.26
service for which the lender has imposed the charge.
35.27
(f) Charges and fees necessary for or related to the transfer of real or personal property
35.28
securing a conventional or cooperative apartment loan or the closing of a conventional or
35.29
cooperative apartment loan paid by the borrower and received by any party other than the
35.30
lender.
35.31
(2) "Contract for deed" means an executory contract for the conveyance of real estate,
35.32
the original principal amount of which is less than $300,000. A commitment for a contract
35.33
for deed shall include an executed purchase agreement or earnest money contract wherein
35.34
the seller agrees to finance any part or all of the purchase price by a contract for deed.
35
Article 2 Sec. 9.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
36.1
(3) "Conventional loan" means a loan or advance of credit, other than a loan or advance
36.2
of credit made by a credit union or made pursuant to section 334.011, to a noncorporate
36.3
borrower in an original principal amount of less than $100,000 or equal to the conforming
36.4
loan limit established by the Federal Housing Finance Agency under the Housing and
36.5
Recovery Act of 2018, Public Law 110-289, secured by a mortgage upon real property
36.6
containing one or more residential units or upon which at the time the loan is made it is
36.7
intended that one or more residential units are to be constructed, and which is not insured
36.8
or guaranteed by the secretary of housing and urban development, by the administrator of
36.9
veterans affairs, or by the administrator of the Farmers Home Administration, and which
36.10
is not made pursuant to the authority granted in subdivision 1, clause (3) or (4). The term
36.11
mortgage does not include contracts for deed or installment land contracts.
36.12
(4) "Cooperative apartment loan" means a loan or advance of credit, other than a loan
36.13
or advance of credit made by a credit union or made pursuant to section 334.011, to a
36.14
noncorporate borrower in an original principal amount of less than $100,000, secured by a
36.15
security interest on a share or shares of stock or a membership certificate or certificates
36.16
issued to a stockholder or member by a cooperative apartment corporation, which may be
36.17
accompanied by an assignment by way of security of the borrower's interest in the proprietary
36.18
lease or occupancy agreement in property issued by the cooperative apartment corporation
36.19
and which is not insured or guaranteed by the secretary of housing and urban development,
36.20
by the administrator of veterans affairs, or by the administrator of the Farmers Home
36.21
Administration.
36.22
(5) "Cooperative apartment corporation" means a corporation or cooperative organized
36.23
under chapter 308A or 317A, the shareholders or members of which are entitled, solely by
36.24
reason of their ownership of stock or membership certificates in the corporation or
36.25
association, to occupy one or more residential units in a building owned or leased by the
36.26
corporation or association.
36.27
(6) "Forward commitment fee" means a fee or other consideration paid to a lender for
36.28
the purpose of securing a binding forward commitment by or through the lender to make
36.29
conventional loans to two or more credit worthy purchasers, including future purchasers,
36.30
of residential units, or a fee or other consideration paid to a lender for the purpose of securing
36.31
a binding forward commitment by or through the lender to make conventional loans to two
36.32
or more credit worthy purchasers, including future purchasers, of units to be created out of
36.33
existing structures pursuant to chapter 515B, or a fee or other consideration paid to a lender
36.34
for the purpose of securing a binding forward commitment by or through the lender to make
36.35
cooperative apartment loans to two or more credit worthy purchasers, including future
36
Article 2 Sec. 9.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
37.1
purchasers, of a share or shares of stock or a membership certificate or certificates in a
37.2
cooperative apartment corporation; provided, that the forward commitment rate of interest
37.3
does not exceed the maximum lawful rate of interest effective as of the date the forward
37.4
commitment is issued by the lender.
37.5
(7) "Borrower's interest rate commitment" means a binding commitment made by a
37.6
lender to a borrower wherein the lender agrees that, if a conventional or cooperative
37.7
apartment loan is made following issuance of and pursuant to the commitment, the
37.8
conventional or cooperative apartment loan shall be made at a rate of interest not in excess
37.9
of the rate of interest agreed to in the commitment, provided that the rate of interest agreed
37.10
to in the commitment is not in excess of the maximum lawful rate of interest effective as
37.11
of the date the commitment is issued by the lender to the borrower.
37.12
(8) "Borrower's loan commitment" means a binding commitment made by a lender to a
37.13
borrower wherein the lender agrees to make a conventional or cooperative apartment loan
37.14
pursuant to the provisions, including the interest rate, of the commitment, provided that the
37.15
commitment rate of interest does not exceed the maximum lawful rate of interest effective
37.16
as of the date the commitment is issued and the commitment when issued and agreed to
37.17
shall constitute a legally binding obligation on the part of the mortgagee or lender to make
37.18
a conventional or cooperative apartment loan within a specified time period in the future at
37.19
a rate of interest not exceeding the maximum lawful rate of interest effective as of the date
37.20
the commitment is issued by the lender to the borrower; provided that a lender who issues
37.21
a borrower's loan commitment pursuant to the provisions of a forward commitment is
37.22
authorized to issue the borrower's loan commitment at a rate of interest not to exceed the
37.23
maximum lawful rate of interest effective as of the date the forward commitment is issued
37.24
by the lender.
37.25
(9) "Finance charge" means the total cost of a conventional or cooperative apartment
37.26
loan including extensions or grant of credit regardless of the characterization of the same
37.27
and includes interest, finders fees, and other charges levied by a lender directly or indirectly
37.28
against the person obtaining the conventional or cooperative apartment loan or against a
37.29
seller of real property securing a conventional loan or a seller of a share or shares of stock
37.30
or a membership certificate or certificates in a cooperative apartment corporation securing
37.31
a cooperative apartment loan, or any other party to the transaction except any actual closing
37.32
costs and any forward commitment fee. The finance charges plus the actual closing costs
37.33
and any forward commitment fee, charged by a lender shall include all charges made by a
37.34
lender other than the principal of the conventional or cooperative apartment loan. The finance
37.35
charge, with respect to wraparound mortgages, shall be computed based upon the face
37
Article 2 Sec. 9.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
38.1
amount of the wraparound mortgage note, which face amount shall consist of the aggregate
38.2
of those funds actually advanced by the wraparound lender and the total outstanding principal
38.3
balances of the prior note or notes which have been made a part of the wraparound mortgage
38.4
note.
38.5
(10) "Lender" means any person making a conventional or cooperative apartment loan,
38.6
or any person arranging financing for a conventional or cooperative apartment loan. The
38.7
term also includes the holder or assignee at any time of a conventional or cooperative
38.8
apartment loan.
38.9
(11) "Loan yield" means the annual rate of return obtained by a lender over the term of
38.10
a conventional or cooperative apartment loan and shall be computed as the annual percentage
38.11
rate as computed in accordance with sections 226.5 (b), (c), and (d) of Regulation Z, Code
38.12
of Federal Regulations, title 12, part 226, but using the definition of finance charge provided
38.13
for in this subdivision. For purposes of this section, with respect to wraparound mortgages,
38.14
the rate of interest or loan yield shall be based upon the principal balance set forth in the
38.15
wraparound note and mortgage and shall not include any interest differential or yield
38.16
differential between the stated interest rate on the wraparound mortgage and the stated
38.17
interest rate on the one or more prior mortgages included in the stated loan amount on a
38.18
wraparound note and mortgage.
38.19
(12) "Person" means an individual, corporation, business trust, partnership or association
38.20
or any other legal entity.
38.21
(13) "Residential unit" means any structure used principally for residential purposes or
38.22
any portion thereof, and includes a unit in a common interest community, a nonowner
38.23
occupied residence, and any other type of residence regardless of whether the unit is used
38.24
as a principal residence, secondary residence, vacation residence, or residence of some other
38.25
denomination.
38.26
(14) "Vendor" means any person or persons who agree to sell real estate and finance
38.27
any part or all of the purchase price by a contract for deed. The term also includes the holder
38.28
or assignee at any time of the vendor's interest in a contract for deed.
38.29
Sec. 10. Minnesota Statutes 2022, section 47.54, subdivision 2, is amended to read:
38.30
Subd. 2. Approval order. (a) If no objection is received by the commissioner within
38.31
15 days after the publication of the notice, the commissioner shall issue an order must
38.32
provide written consent approving the application without a hearing if it is found the
38.33
commissioner finds that (a): (1) the applicant bank meets current industry standards of
38
Article 2 Sec. 10.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
39.1
capital adequacy, management quality, and asset condition, (b); (2) the establishment of the
39.2
proposed detached facility will improve improves the quality or increase the availability of
39.3
banking services in the community to be served,; and (c) (3) the establishment of the proposed
39.4
detached facility will does not have an undue adverse effect upon the solvency of existing
39.5
financial institutions in the community to be served.
39.6
Otherwise, (b) The commissioner shall must deny the an application that does not meet
39.7
the criteria under paragraph (a), clauses (1) to (3).
39.8
(c) Any proceedings for judicial review of an order of written consent provided by the
39.9
commissioner issued under this subdivision without a contested case hearing shall be
39.10
conducted pursuant to the provisions of the Administrative Procedure Act relating to judicial
39.11
review of agency decisions, sections 14.63 to 14.69, and the scope of judicial review in
39.12
such proceedings shall be as provided therein. Nothing herein shall be construed as requiring
39.13
the commissioner to conduct a contested case hearing if no written objection is timely
39.14
received by the commissioner from a bank within three miles of the proposed location of
39.15
the detached facility.
39.16
Sec. 11. Minnesota Statutes 2022, section 47.54, subdivision 6, is amended to read:
39.17
Subd. 6. Expiration and extension of order approval. If a facility is not activated
39.18
within 18 months from the date of the order approval is granted under subdivision 2, the
39.19
approval order automatically expires. Upon a request of made by the applicant prior to
39.20
before the automatic expiration date of the order approval expires, the commissioner may
39.21
grant reasonable extensions of time to the applicant to activate the facility as the
39.22
commissioner deems necessary. The extensions of time shall not exceed a total of an
39.23
additional 12 months. If the commissioner's order approval is the subject of an appeal in
39.24
accordance with chapter 14, the time period referred to in this section for activation of to
39.25
activate the facility and any extensions shall begin begins when all appeals or rights of
39.26
appeal from the commissioner's order approval have concluded or expired.
39.27
Sec. 12. Minnesota Statutes 2022, section 48.24, subdivision 2, is amended to read:
39.28
Subd. 2. Loan liabilities. Loans not exceeding 25 percent of such capital and surplus
39.29
made upon first mortgage security on improved real estate in any state in which the bank
39.30
or a branch established under section 49.411 detached facility of the bank is located, or in
39.31
any state adjoining a state in which the bank or a branch established under section 49.411
39.32
detached facility of the bank is located, shall not constitute a liability of the maker of the
39.33
notes secured by such mortgages within the meaning of the foregoing provision limiting
39
Article 2 Sec. 12.
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REVISOR
RSI
40.1
liability, but shall be an actual liability of the maker. These mortgage loans shall be limited
40.2
to, and in no case exceed, 50 percent of the cash value of the security covered by the
40.3
mortgage, except mortgage loans guaranteed as provided by the Servicemen's Readjustment
40.4
Act of 1944, as now or hereafter amended, or for which there is a commitment to so guarantee
40.5
or for which a conditional guarantee has been issued, which loans shall in no case exceed
40.6
60 percent of the cash value of the security covered by such mortgage. For the purposes of
40.7
this subdivision, real estate is improved when substantial and permanent development or
40.8
construction has contributed substantially to its value, and agricultural land is improved
40.9
when farm crops are regularly raised on such land without further substantial improvements.
40.10
Sec. 13. Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 18, is amended
40.11
to read:
40.12
Subd. 18. Money transmission. (a) "Money transmission" means:
40.13
(1) selling or issuing payment instruments to a person located in this state;
40.14
(2) selling or issuing stored value to a person located in this state; or
40.15
(3) receiving money for transmission from a person located in this state.
40.16
(b) Money includes payroll processing services. Money transmission does not include
40.17
the provision solely of online or telecommunications services or network access.
40.18
Sec. 14. Minnesota Statutes 2023 Supplement, section 53B.28, subdivision 25, is amended
40.19
to read:
40.20
Subd. 25. Payroll processing services. "Payroll processing services" means receiving
40.21
money for transmission pursuant to a contract with a person to deliver delivering wages or
40.22
salaries, make making payment of payroll taxes to state and federal agencies, make making
40.23
payments relating to employee benefit plans, or make making distributions of other authorized
40.24
deductions from wages or salaries, or transmitting money on behalf of an employer in
40.25
connection with transactions related to employees. The term payroll processing services
40.26
does not include includes an employer performing payroll processing services on the
40.27
employer's own behalf or on behalf of the employer's affiliate, or a and professional
40.28
employment organization subject to regulation under other applicable state law organizations.
40.29
Sec. 15. Minnesota Statutes 2023 Supplement, section 53B.29, is amended to read:
40.30
53B.29 EXEMPTIONS.
40.31
This chapter does not apply to:
40
Article 2 Sec. 15.
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REVISOR
RSI
41.1
(1) an operator of a payment system, to the extent the operator of a payment system
41.2
provides processing, clearing, or settlement services between or among persons exempted
41.3
by this section or licensees in connection with wire transfers, credit card transactions, debit
41.4
card transactions, stored-value transactions, automated clearing house transfers, or similar
41.5
funds transfers;
41.6
(2) a person appointed as an agent of a payee to collect and process a payment from a
41.7
payor to the payee for goods or services, other than money transmission itself, provided to
41.8
the payor by the payee, provided that:
41.9
(i) there exists a written agreement between the payee and the agent directing the agent
41.10
to collect and process payments from payors on the payee's behalf;
41.11
(ii) the payee holds the agent out to the public as accepting payments for goods or services
41.12
on the payee's behalf; and
41.13
(iii) payment for the goods and services is treated as received by the payee upon receipt
41.14
by the agent so that the payor's obligation is extinguished and there is no risk of loss to the
41.15
payor if the agent fails to remit the funds to the payee;
41.16
(3) a person that acts as an intermediary by processing payments between an entity that
41.17
has directly incurred an outstanding money transmission obligation to a sender, and the
41.18
sender's designated recipient, provided that the entity:
41.19
(i) is properly licensed or exempt from licensing requirements under this chapter;
41.20
(ii) provides a receipt, electronic record, or other written confirmation to the sender
41.21
identifying the entity as the provider of money transmission in the transaction; and
41.22
(iii) bears sole responsibility to satisfy the outstanding money transmission obligation
41.23
to the sender, including the obligation to make the sender whole in connection with any
41.24
failure to transmit the funds to the sender's designated recipient;
41.25
(4) the United States; a department, agency, or instrumentality of the United States; or
41.26
an agent of the United States;
41.27
(5) money transmission by the United States Postal Service or by an agent of the United
41.28
States Postal Service;
41.29
(6) a state; county; city; any other governmental agency, governmental subdivision, or
41.30
instrumentality of a state; or the state's agent;
41.31
(7) a federally insured depository financial institution; bank holding company; office of
41.32
an international banking corporation; foreign bank that establishes a federal branch pursuant
41
Article 2 Sec. 15.
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REVISOR
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42.1
to the International Bank Act, United States Code, title 12, section 3102, as amended or
42.2
recodified from time to time; corporation organized pursuant to the Bank Service Corporation
42.3
Act, United States Code, title 12, sections 1861 to 1867, as amended or recodified from
42.4
time to time; or corporation organized under the Edge Act, United States Code, title 12,
42.5
sections 611 to 633, as amended or recodified from time to time;
42.6
(8) electronic funds transfer of governmental benefits for a federal, state, county, or
42.7
governmental agency by a contractor on behalf of the United States or a department, agency,
42.8
or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or
42.9
instrumentality thereof;
42.10
(9) a board of trade designated as a contract market under the federal Commodity
42.11
Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from
42.12
time to time; or a person that in the ordinary course of business provides clearance and
42.13
settlement services for a board of trade to the extent of its operation as or for a board;
42.14
(10) a registered futures commission merchant under the federal commodities laws, to
42.15
the extent of the registered futures commission merchant's operation as a merchant;
42.16
(11) a person registered as a securities broker-dealer under federal or state securities
42.17
laws, to the extent of the person's operation as a securities broker-dealer;
42.18
(12) an individual employed by a licensee, authorized delegate, or any person exempted
42.19
from the licensing requirements under this chapter when acting within the scope of
42.20
employment and under the supervision of the licensee, authorized delegate, or exempted
42.21
person as an employee and not as an independent contractor;
42.22
(13) a person expressly appointed as a third-party service provider to or agent of an
42.23
entity exempt under clause (7), solely to the extent that:
42.24
(i) the service provider or agent is engaging in money transmission on behalf of and
42.25
pursuant to a written agreement with the exempt entity that sets forth the specific functions
42.26
that the service provider or agent is to perform; and
42.27
(ii) the exempt entity assumes all risk of loss and all legal responsibility for satisfying
42.28
the outstanding money transmission obligations owed to purchasers and holders of the
42.29
outstanding money transmission obligations upon receipt of the purchaser's or holder's
42.30
money or monetary value by the service provider or agent; or
42.31
(14) a payroll processing services provider; or
42
Article 2 Sec. 15.
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3rd Engrossment
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REVISOR
RSI
43.1
(14) (15) a person exempt by regulation or order if the commissioner finds that (i) the
43.2
exemption is in the public interest, and (ii) the regulation of the person is not necessary for
43.3
the purposes of this chapter.
43.4
Sec. 16. Minnesota Statutes 2022, section 58.02, is amended by adding a subdivision to
43.5
read:
43.6
Subd. 15a. Nationwide Multistate Licensing System and Registry. "Nationwide
43.7
Multistate Licensing System and Registry" has the meaning given in section 58A.02,
43.8
subdivision 8.
43.9
Sec. 17. Minnesota Statutes 2022, section 58.02, subdivision 18, is amended to read:
43.10
Subd. 18. Residential mortgage loan. "Residential mortgage loan" means a loan secured
43.11
primarily by either: (1) a mortgage, deed of trust, or other equivalent security interest on
43.12
residential real property estate; or (2) certificates of stock or other evidence of ownership
43.13
interest in and proprietary lease from corporations, partnerships, or other forms of business
43.14
organizations formed for the purpose of cooperative ownership of residential real property
43.15
estate.
43.16
Sec. 18. Minnesota Statutes 2022, section 58.02, subdivision 21, is amended to read:
43.17
Subd. 21. Residential real estate. "Residential real estate" means real property located
43.18
in Minnesota upon which a dwelling, as defined in United States Code, title 15, section
43.19
1602(w), is constructed or is intended to be constructed, whether or not the owner occupies
43.20
the real property.
43.21
Sec. 19. Minnesota Statutes 2022, section 58.04, subdivision 1, is amended to read:
43.22
Subdivision 1. Residential mortgage originator licensing requirements. (a) No person
43.23
shall act as a residential mortgage originator, or make residential mortgage loans without
43.24
first obtaining a license from the commissioner according to the licensing procedures
43.25
provided in this chapter.
43.26
(b) A licensee must be either a partnership, limited liability partnership, association,
43.27
limited liability company, corporation, or other form of business organization, and must
43.28
have and maintain a surety bond in the amounts prescribed under section 58.08.
43.29
(c) The following persons are exempt from the residential mortgage originator licensing
43.30
requirements:
43
Article 2 Sec. 19.
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3rd Engrossment
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REVISOR
RSI
44.1
(1) a person who is not in the business of making residential mortgage loans and who
44.2
makes no more than three such loans, with its own funds, during any 12-month period;
44.3
(2) a financial institution as defined in section 58.02, subdivision 10;
44.4
(3) an agency of the federal government, or of a state or municipal government;
44.5
(4) an employee or employer pension plan making loans only to its participants;
44.6
(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
44.7
specific order issued by a court of competent jurisdiction;
44.8
(6) a person who is a bona fide nonprofit organization that meets all the criteria required
44.9
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, adopted pursuant
44.10
to Code of Federal Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii);
44.11
(6) (7) a person exempted by order of the commissioner; or
44.12
(7) (8) a manufactured home dealer, as defined in section 327B.01, subdivision 7 or 11b,
44.13
or a manufactured home salesperson, as defined in section 327B.01, subdivision 19, that:
44.14
(i) performs only clerical or support duties in connection with assisting a consumer in
44.15
filling out a residential mortgage loan application but does not in any way offer or negotiate
44.16
loan terms, or hold themselves out as a housing counselor;
44.17
(ii) does not receive any direct or indirect compensation or gain from any individual or
44.18
company for assisting consumers with a residential mortgage loan application, in excess of
44.19
the customary salary or commission from the employer in connection with the sales
44.20
transaction; and
44.21
(iii) discloses to the borrower in writing:
44.22
(A) if a corporate affiliation with a lender exists;
44.23
(B) if a corporate affiliation with a lender exists, that the lender cannot guarantee the
44.24
lowest or best terms available and the consumer has the right to choose their lender; and
44.25
(C) if a corporate affiliation with a lender exists, the name of at least one unaffiliated
44.26
lender.
44.27
(d) For the purposes of this subdivision, "housing counselor" means an individual who
44.28
provides assistance and guidance about residential mortgage loan terms including rates,
44.29
fees, or other costs.
44.30
(e) The disclosures required under paragraph (c), clause (7) (8), item (iii), must be made
44.31
on a one-page form prescribed by the commissioner and developed in consultation with the
44
Article 2 Sec. 19.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
45.1
Manufactured and Modular Home Association. The form must be posted on the department's
45.2
website.
45.3
Sec. 20. Minnesota Statutes 2022, section 58.04, subdivision 2, is amended to read:
45.4
Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning August
45.5
1, 1999, no person shall engage in activities or practices that fall within the definition of
45.6
"servicing a residential mortgage loan" under section 58.02, subdivision 22, without first
45.7
obtaining a license from the commissioner according to the licensing procedures provided
45.8
in this chapter.
45.9
(b) The following persons are exempt from the residential mortgage servicer licensing
45.10
requirements:
45.11
(1) a person licensed as a residential mortgage originator;
45.12
(2) an employee of one licensee or one person holding a certificate of exemption based
45.13
on an exemption under this subdivision;
45.14
(3) a person servicing loans made with its own funds, if no more than three such loans
45.15
are made in any 12-month period;
45.16
(4) a financial institution as defined in section 58.02, subdivision 10;
45.17
(5) an agency of the federal government, or of a state or municipal government;
45.18
(6) an employee or employer pension plan making loans only to its participants;
45.19
(7) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
45.20
specific order issued by a court of competent jurisdiction; or
45.21
(8) a person who is a bona fide nonprofit organization that meets all the criteria required
45.22
by the federal Secure and Fair Enforcement Licensing Act in Regulation H, Code of Federal
45.23
Regulations, title 12, part 1008, subpart B, section 1008.103 (e)(7)(ii); or
45.24
(8) (9) a person exempted by order of the commissioner.
45.25
Sec. 21. Minnesota Statutes 2022, section 58.05, subdivision 1, is amended to read:
45.26
Subdivision 1. Exempt person. (a) An exempt person, as defined by section 58.04,
45.27
subdivision 1, paragraph (c), and subdivision 2, paragraph (b), is exempt from the licensing
45.28
requirements of this chapter, but is subject to all other provisions of this chapter.
45.29
(b) Paragraph (a) does not apply to an institution covered under section 58.04, subdivision
45.30
4, even if the institution is otherwise an exempt person.
45
Article 2 Sec. 21.
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3rd Engrossment
SF4097
REVISOR
RSI
46.1
Sec. 22. Minnesota Statutes 2022, section 58.05, subdivision 3, is amended to read:
46.2
Subd. 3. Certificate of exemption. A person (a) The following persons must obtain a
46.3
certificate of exemption from the commissioner to qualify as an exempt person under section
46.4
58.04, subdivision 1, paragraph (c), a financial institution under clause (2),:
46.5
(1) a bona fide nonprofit organization under section 58.04, subdivision 1, paragraph (c),
46.6
clause (6); or
46.7
(2) a person exempted by order of the commissioner under section 58.04, subdivision
46.8
1, paragraph (c), clause (6); or (7).
46.9
(b) The following persons must obtain a certificate of exemption from the commissioner
46.10
to qualify as an exempt person under section 58.04, subdivision 2, paragraph (b), as a
46.11
financial institution under clause (4),:
46.12
(1) a bona fide nonprofit organization under section 58.04, subdivision 2, paragraph (b),
46.13
clause (8); or
46.14
(2) a person exempted by order of the commissioner under section 58.04, subdivision
46.15
2, paragraph (b), clause (8) (9).
46.16
Sec. 23. Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
46.17
read:
46.18
Subd. 5. Background checks. In connection with an application for a residential mortgage
46.19
loan originator or servicer license, any person in control of an applicant must, at a minimum,
46.20
provide the Nationwide Multistate Licensing System and Registry information concerning
46.21
the person's identity, including:
46.22
(1) fingerprints for submission to the Federal Bureau of Investigation and a governmental
46.23
agency or entity authorized to receive the information for a state, national, and international
46.24
criminal history background check; and
46.25
(2) personal history and experience in a form prescribed by the Nationwide Multistate
46.26
Licensing System and Registry, including the submission of authorization for the Nationwide
46.27
Multistate Licensing System and Registry and the commissioner to obtain:
46.28
(i) an independent credit report obtained from a consumer reporting agency described
46.29
in United States Code, title 15, section 1681a(p); and
46.30
(ii) information related to administrative, civil, or criminal findings by a governmental
46.31
jurisdiction.
46
Article 2 Sec. 23.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
47.1
Sec. 24. Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
47.2
read:
47.3
Subd. 6. Requesting and distributing criminal information; agency. For the purposes
47.4
of this section and in order to reduce the points of contact the Federal Bureau of Investigation
47.5
may have to maintain for purposes of subdivision 5, clauses (1) and (2), the commissioner
47.6
may use the Nationwide Multistate Licensing System and Registry as a channeling agent
47.7
to request information from and distribute information to the United States Department of
47.8
Justice or any governmental agency.
47.9
Sec. 25. Minnesota Statutes 2022, section 58.06, is amended by adding a subdivision to
47.10
read:
47.11
Subd. 7. Requesting and distributing noncriminal information; agency. For the
47.12
purposes of this section and in order to reduce the points of contact the commissioner may
47.13
have to maintain for purposes of subdivision 5, clause (2), the commissioner may use the
47.14
Nationwide Multistate Licensing System and Registry as a channeling agent to request and
47.15
distribute information from and to any source, as directed by the commissioner.
47.16
Sec. 26. Minnesota Statutes 2022, section 58.08, subdivision 1a, is amended to read:
47.17
Subd. 1a. Residential mortgage originators. (a) An applicant for a residential mortgage
47.18
originator license must file with the department a surety bond in the amount of $100,000
47.19
$125,000, issued by an insurance company authorized to do so in this state. The bond must
47.20
cover all mortgage loan originators who are employees or independent agents of the applicant.
47.21
The bond must be available for the recovery of expenses, fines, and fees levied by the
47.22
commissioner under this chapter and for losses incurred by borrowers as a result of a
47.23
licensee's noncompliance with the requirements of this chapter, sections 325D.43 to 325D.48,
47.24
and 325F.67 to 325F.69, or breach of contract relating to activities regulated by this chapter.
47.25
(b) The bond must be submitted with the originator's license application and evidence
47.26
of continued coverage must be submitted with each renewal. Any change in the bond must
47.27
be submitted for approval by the commissioner, within ten days of its execution. The bond
47.28
or a substitute bond shall remain in effect during all periods of licensing.
47.29
(c) Upon filing of the mortgage call report as required by section 58A.17 58.141, a
47.30
licensee shall maintain or increase its the licensee's surety bond to reflect the total dollar
47.31
amount of the closed residential mortgage loans originated in this state in the preceding
47.32
year according to the table in this paragraph. A licensee may decrease its the licensee's
47
Article 2 Sec. 26.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
48.1
surety bond according to the table in this paragraph if the surety bond required is less than
48.2
the amount of the surety bond on file with the department.
Surety Bond Required
48.3
Dollar Amount of Closed Residential
48.4
Mortgage Loans
$100,000 $125,000
48.5
$0 to $5,000,000 $10,000,000
$125,000 $150,000
48.6
$5,000,000.01 $10,000,000.01 to $10,000,000
48.7
$25,000,000
$150,000 $200,000
48.8
$10,000,000.01 $25,000,000.01 to
48.9
$25,000,000 $100,000,000
$200,000 $300,000
48.10
Over $25,000,000 $100,000,000
48.11
For purposes of this subdivision, "mortgage loan originator" has the meaning given the
48.12
term in section 58A.02, subdivision 7.
48.13
Sec. 27. Minnesota Statutes 2022, section 58.08, subdivision 2, is amended to read:
48.14
Subd. 2. Residential mortgage servicers. (a) A residential mortgage servicer licensee
48.15
shall continuously maintain a surety bond or irrevocable letter of credit in an amount not
48.16
less than $100,000 $125,000 in a form approved by the commissioner, issued by an insurance
48.17
company or bank authorized to do so in this state. The bond or irrevocable letter of credit
48.18
must be available for the recovery of expenses, fines, and fees levied by the commissioner
48.19
under this chapter, and for losses or damages incurred by borrowers or other aggrieved
48.20
parties as the result of a licensee's noncompliance with the requirements of this chapter,
48.21
sections 325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to
48.22
activities regulated by this chapter.
48.23
(b) The bond or irrevocable letter of credit must be submitted with the servicer's license
48.24
application and evidence of continued coverage must be submitted with each renewal. Any
48.25
change in the bond or letter of credit must be submitted for approval by the commissioner,
48.26
within ten days of its execution. The bond or a substitute bond must remain in effect during
48.27
all periods of a license.
48.28
(c) Upon filing the mortgage call report under section 58.141, a licensee must maintain
48.29
or increase the licensee's surety bond to reflect the total dollar amount of unpaid principal
48.30
balance for residential mortgage loans serviced in Minnesota during the preceding quarter
48.31
according to the table in this paragraph. A licensee may decrease the licensee's surety bond
48.32
according to the table in this paragraph if the surety bond required is less than the amount
48.33
of the surety bond on file with the department.
48
Article 2 Sec. 27.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
Surety Bond Required
49.1
Dollar Amount of Unpaid Principal Balance
49.2
for Serviced Residential Mortgage Loans
$125,000
49.3
$0 to $10,000,000
$200,000
49.4
$10,000,000.01 to $50,000,000
$300,000
49.5
Over $50,000,000
49.6
Sec. 28. Minnesota Statutes 2022, section 58.10, subdivision 3, is amended to read:
49.7
Subd. 3. Consumer education account; money credited and appropriated. (a) The
49.8
consumer education account is created in the special revenue fund. Money credited to this
49.9
account may be appropriated to the commissioner for the purpose of making to: (1) make
49.10
grants to programs and campaigns designed to help consumers avoid being victimized by
49.11
unscrupulous lenders and mortgage brokers; and (2) pay for expenses the commissioner
49.12
incurs to provide outreach and education related to affordable housing and home ownership
49.13
education. The commissioner must give preference shall be given for grants to programs
49.14
and campaigns designed by coalitions of public sector, private sector, and nonprofit agencies,
49.15
institutions, companies, and organizations.
49.16
(b) A sum sufficient is appropriated annually from the consumer education account to
49.17
the commissioner to make the grants described in paragraph (a).
49.18
Sec. 29. Minnesota Statutes 2022, section 58.115, is amended to read:
49.19
58.115 EXAMINATIONS.
49.20
The commissioner has under this chapter the same powers with respect to examinations
49.21
that the commissioner has under section 46.04. In addition to the powers under section
49.22
46.04, the commissioner may accept examination reports prepared by a state agency that
49.23
has comparable supervisory powers and examination procedures. The authority under section
49.24
49.411, subdivision 7, applies to examinations of institutions under this chapter.
49.25
Sec. 30. Minnesota Statutes 2022, section 58.13, subdivision 1, is amended to read:
49.26
Subdivision 1. Generally. (a) No person acting as a residential mortgage originator or
49.27
servicer, including a person required to be licensed under this chapter, and no person exempt
49.28
from the licensing requirements of this chapter under section 58.04, except as otherwise
49.29
provided in paragraph (b), shall:
49.30
(1) fail to maintain a trust account to hold trust funds received in connection with a
49.31
residential mortgage loan;
49
Article 2 Sec. 30.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
50.1
(2) fail to deposit all trust funds into a trust account within three business days of receipt;
50.2
commingle trust funds with funds belonging to the licensee or exempt person; or use trust
50.3
account funds for any purpose other than that for which they are received;
50.4
(3) unreasonably delay the processing of a residential mortgage loan application, or the
50.5
closing of a residential mortgage loan. For purposes of this clause, evidence of unreasonable
50.6
delay includes but is not limited to those factors identified in section 47.206, subdivision
50.7
7, paragraph (d);
50.8
(4) fail to disburse funds according to its contractual or statutory obligations;
50.9
(5) fail to perform in conformance with its written agreements with borrowers, investors,
50.10
other licensees, or exempt persons;
50.11
(6) charge a fee for a product or service where the product or service is not actually
50.12
provided, or misrepresent the amount charged by or paid to a third party for a product or
50.13
service;
50.14
(7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property
50.15
law;
50.16
(8) violate any provision of any other applicable state or federal law regulating residential
50.17
mortgage loans including, without limitation, sections 47.20 to 47.208 and 47.58;
50.18
(9) make or cause to be made, directly or indirectly, any false, deceptive, or misleading
50.19
statement or representation in connection with a residential loan transaction including,
50.20
without limitation, a false, deceptive, or misleading statement or representation regarding
50.21
the borrower's ability to qualify for any mortgage product;
50.22
(10) conduct residential mortgage loan business under any name other than that under
50.23
which the license or certificate of exemption was issued;
50.24
(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
50.25
the purpose of influencing the independent judgment of the appraiser with respect to the
50.26
value of real estate that is to be covered by a residential mortgage or is being offered as
50.27
security according to an application for a residential mortgage loan;
50.28
(12) issue any document indicating conditional qualification or conditional approval for
50.29
a residential mortgage loan, unless the document also clearly indicates that final qualification
50.30
or approval is not guaranteed, and may be subject to additional review;
50
Article 2 Sec. 30.
S4097-3
3rd Engrossment
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REVISOR
RSI
51.1
(13) make or assist in making any residential mortgage loan with the intent that the loan
51.2
will not be repaid and that the residential mortgage originator will obtain title to the property
51.3
through foreclosure;
51.4
(14) provide or offer to provide for a borrower, any brokering or lending services under
51.5
an arrangement with a person other than a licensee or exempt person, provided that a person
51.6
may rely upon a written representation by the residential mortgage originator that it is in
51.7
compliance with the licensing requirements of this chapter;
51.8
(15) claim to represent a licensee or exempt person, unless the person is an employee
51.9
of the licensee or exempt person or unless the person has entered into a written agency
51.10
agreement with the licensee or exempt person;
51.11
(16) fail to comply with the record keeping and notification requirements identified in
51.12
section 58.14 or fail to abide by the affirmations made on the application for licensure;
51.13
(17) represent that the licensee or exempt person is acting as the borrower's agent after
51.14
providing the nonagency disclosure required by section 58.15, unless the disclosure is
51.15
retracted and the licensee or exempt person complies with all of the requirements of section
51.16
58.16;
51.17
(18) make, provide, or arrange for a residential mortgage loan that is of a lower investment
51.18
grade if the borrower's credit score or, if the originator does not utilize credit scoring or if
51.19
a credit score is unavailable, then comparable underwriting data, indicates that the borrower
51.20
may qualify for a residential mortgage loan, available from or through the originator, that
51.21
is of a higher investment grade, unless the borrower is informed that the borrower may
51.22
qualify for a higher investment grade loan with a lower interest rate and/or lower discount
51.23
points, and consents in writing to receipt of the lower investment grade loan;
51.24
For purposes of this section, "investment grade" refers to a system of categorizing
51.25
residential mortgage loans in which the loans are distinguished by interest rate or discount
51.26
points or both charged to the borrower, which vary according to the degree of perceived
51.27
risk of default based on factors such as the borrower's credit, including credit score and
51.28
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
51.29
bankruptcy or foreclosure;
51.30
(19) make, publish, disseminate, circulate, place before the public, or cause to be made,
51.31
directly or indirectly, any advertisement or marketing materials of any type, or any statement
51.32
or representation relating to the business of residential mortgage loans that is false, deceptive,
51.33
or misleading;
51
Article 2 Sec. 30.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
52.1
(20) advertise loan types or terms that are not available from or through the licensee or
52.2
exempt person on the date advertised, or on the date specified in the advertisement. For
52.3
purposes of this clause, advertisement includes, but is not limited to, a list of sample mortgage
52.4
terms, including interest rates, discount points, and closing costs provided by licensees or
52.5
exempt persons to a print or electronic medium that presents the information to the public;
52.6
(21) use or employ phrases, pictures, return addresses, geographic designations, or other
52.7
means that create the impression, directly or indirectly, that a licensee or other person is a
52.8
governmental agency, or is associated with, sponsored by, or in any manner connected to,
52.9
related to, or endorsed by a governmental agency, if that is not the case;
52.10
(22) violate section 82.77, relating to table funding;
52.11
(23) make, provide, or arrange for a residential mortgage loan all or a portion of the
52.12
proceeds of which are used to fully or partially pay off a "special mortgage" unless the
52.13
borrower has obtained a written certification from an authorized independent loan counselor
52.14
that the borrower has received counseling on the advisability of the loan transaction. For
52.15
purposes of this section, "special mortgage" means a residential mortgage loan originated,
52.16
subsidized, or guaranteed by or through a state, tribal, or local government, or nonprofit
52.17
organization, that bears one or more of the following nonstandard payment terms which
52.18
substantially benefit the borrower: (i) payments vary with income; (ii) payments of principal
52.19
or interest are not required or can be deferred under specified conditions; (iii) principal or
52.20
interest is forgivable under specified conditions; or (iv) where no interest or an annual
52.21
interest rate of two percent or less is charged in connection with the loan. For purposes of
52.22
this section, "authorized independent loan counselor" means a nonprofit, third-party
52.23
individual or organization providing home buyer education programs, foreclosure prevention
52.24
services, mortgage loan counseling, or credit counseling certified by the United States
52.25
Department of Housing and Urban Development, the Minnesota Home Ownership Center,
52.26
the Minnesota Mortgage Foreclosure Prevention Association, AARP, or NeighborWorks
52.27
America;
52.28
(24) make, provide, or arrange for a residential mortgage loan without verifying the
52.29
borrower's reasonable ability to pay the scheduled payments of the following, as applicable:
52.30
principal; interest; real estate taxes; homeowner's insurance, assessments, and mortgage
52.31
insurance premiums. For loans in which the interest rate may vary, the reasonable ability
52.32
to pay shall be determined based on a fully indexed rate and a repayment schedule which
52.33
achieves full amortization over the life of the loan. For all residential mortgage loans, the
52.34
borrower's income and financial resources must be verified by tax returns, payroll receipts,
52.35
bank records, or other similarly reliable documents.
52
Article 2 Sec. 30.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
53.1
Nothing in this section shall be construed to limit a mortgage originator's or exempt
53.2
person's ability to rely on criteria other than the borrower's income and financial resources
53.3
to establish the borrower's reasonable ability to repay the residential mortgage loan, including
53.4
criteria established by the United States Department of Veterans Affairs or the United States
53.5
Department of Housing and Urban Development for interest rate reduction refinancing loans
53.6
or streamline loans, or criteria authorized or promulgated by the Federal National Mortgage
53.7
Association or Federal Home Loan Mortgage Corporation; however, such other criteria
53.8
must be verified through reasonably reliable methods and documentation. The mortgage
53.9
originator's analysis of the borrower's reasonable ability to repay may include, but is not
53.10
limited to, consideration of the following items, if verified: (1) the borrower's current and
53.11
expected income; (2) current and expected cash flow; (3) net worth and other financial
53.12
resources other than the consumer's equity in the dwelling that secures the loan; (4) current
53.13
financial obligations; (5) property taxes and insurance; (6) assessments on the property; (7)
53.14
employment status; (8) credit history; (9) debt-to-income ratio; (10) credit scores; (11) tax
53.15
returns; (12) pension statements; and (13) employment payment records, provided that no
53.16
mortgage originator shall disregard facts and circumstances that indicate that the financial
53.17
or other information submitted by the consumer is inaccurate or incomplete. A statement
53.18
by the borrower to the residential mortgage originator or exempt person of the borrower's
53.19
income and resources or sole reliance on any single item listed above is not sufficient to
53.20
establish the existence of the income or resources when verifying the reasonable ability to
53.21
pay;
53.22
(25) engage in "churning." As used in this section, "churning" means knowingly or
53.23
intentionally making, providing, or arranging for a residential mortgage loan when the new
53.24
residential mortgage loan does not provide a reasonable, tangible net benefit to the borrower
53.25
considering all of the circumstances, including the terms of both the new and refinanced
53.26
loans, the cost of the new loan, and the borrower's circumstances;. In order to demonstrate
53.27
a reasonable, tangible net benefit to the borrower, the circumstances at the time of the
53.28
application must be documented in writing and must be signed by the borrower prior to the
53.29
closing date;
53.30
(26) the first time a residential mortgage originator orally informs a borrower of the
53.31
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
53.32
which does not include an amount for payment of property taxes and hazard insurance, the
53.33
residential mortgage originator must inform the borrower that an additional amount will be
53.34
due for taxes and insurance and, if known, disclose to the borrower the amount of the
53.35
anticipated or actual periodic payments for property taxes and hazard insurance. This same
53
Article 2 Sec. 30.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
54.1
oral disclosure must be made each time the residential mortgage originator orally informs
54.2
the borrower of a different anticipated or actual periodic payment amount change from the
54.3
amount previously disclosed. A residential mortgage originator need not make this disclosure
54.4
concerning a refinancing loan if the residential mortgage originator knows that the borrower's
54.5
existing loan that is anticipated to be refinanced does not have an escrow account; or
54.6
(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
54.7
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
54.8
with any repayment option offered pursuant to the terms of the loan will result in negative
54.9
amortization during any six-month period.
54.10
(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally chartered
54.11
bank, savings bank, or credit union, an institution chartered by Congress under the Farm
54.12
Credit Act, or to a person making, providing, or arranging a residential mortgage loan
54.13
originated or purchased by a state agency or a tribal or local unit of government. This
54.14
paragraph supersedes any inconsistent provision of this chapter.
54.15
Sec. 31. [58.141] REPORTS AND UNIQUE IDENTIFIER.
54.16
Subdivision 1. Mortgage call reports. A residential mortgage originator or servicer
54.17
must submit reports of condition to the Nationwide Multistate Licensing System and Registry.
54.18
Reports submitted under this subdivision must be in the form and contain the information
54.19
required by the Nationwide Multistate Licensing System and Registry.
54.20
Subd. 2. Report to Nationwide Multistate Licensing System and Registry. Subject
54.21
to section 58A.14, the commissioner must regularly report violations of this chapter, as well
54.22
as enforcement actions and other relevant information, to the Nationwide Multistate Licensing
54.23
System and Registry.
54.24
Subd. 3. Unique identifier; display. The unique identifier of any person originating a
54.25
residential mortgage loan must be clearly displayed on all residential mortgage loan
54.26
application forms, solicitations, or advertisements, including business cards or websites,
54.27
and any other documents the commissioner establishes by rule or order.
54.28
Sec. 32. [60M.01] DEFINITIONS.
54.29
Subdivision 1. Terms. For the purposes of this chapter, the terms defined in this section
54.30
have the meanings given.
54.31
Subd. 2. Bail bond. "Bail bond" means a three-party contract between the state, the
54.32
accused, and the surety whereby an individual is released to the custody of the surety, and
54
Article 2 Sec. 32.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
55.1
the surety guarantees to the state the appearance of the individual at all criminal proceedings
55.2
for which the surety bond is posted.
55.3
Subd. 3. Bail bond agency. "Bail bond agency" means an agency contracted by a surety
55.4
to supervise or otherwise manage the bail bond business written in Minnesota by producers
55.5
appointed by the surety.
55.6
Subd. 4. Commissioner. "Commissioner" means the commissioner of commerce.
55.7
Subd. 5. Department. "Department" means the Department of Commerce.
55.8
Subd. 6. Depositor. "Depositor" means:
55.9
(1) an individual that has paid money to a surety, bail bond agency, or producer as
55.10
premium or premium toward a bail bond product transaction, as defined in section 60M.02;
55.11
or
55.12
(2) an individual that deposited money, property, or assets with a surety, bail bond
55.13
agency, or producer to be held as collateral or used toward the liability of a bail bond product
55.14
transaction, as defined in section 60M.03.
55.15
Subd. 7. Negotiate. "Negotiate" means the act of conferring directly with or offering
55.16
advice directly to a purchaser or prospective purchaser of a particular insurance contract
55.17
concerning any of the substantive benefits, terms, or conditions of the contract, if the person
55.18
engaged in the act either sells insurance or obtains insurance from insurers for purchasers.
55.19
Subd. 8. Net premium. "Net premium" means a bond's premium, less any commission
55.20
agreed to in advance and in writing between a producer and the surety or bail bond agency.
55.21
Subd. 9. Personal information. "Personal information" has the meaning given in section
55.22
72A.491, subdivision 17.
55.23
Subd. 10. Principal. "Principal" is an individual who has engaged with a bail bond
55.24
agency or producer to arrange for the individual's bail bond to be posted on the individual's
55.25
behalf, securing the individual's release pretrial on a bail bond.
55.26
Subd. 11. Privileged information. "Privileged information" has the meaning given in
55.27
section 72A.491, subdivision 19.
55.28
Subd. 12. Producer. "Producer" means a person that is licensed to write bail bonds, has
55.29
been approved by the state court administrator's office, is a contractor or employee for a
55.30
bail bond agency, and is appointed by a surety to execute or countersign bail bonds for the
55.31
surety in connection with judicial proceedings.
55
Article 2 Sec. 32.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
56.1
Subd. 13. Sell. "Sell" means to exchange a bail bond product for money on behalf of a
56.2
surety company.
56.3
Subd. 14. Surety. "Surety" means a domestic, foreign, or alien insurance company that
56.4
is licensed to transact surety business in Minnesota under section 60A.06.
56.5
Sec. 33. [60M.02] PREMIUMS.
56.6
Subdivision 1. Premiums; generally. (a) Regardless of whether a producer is an
56.7
employee or an independent contractor, a producer must charge the approved, filed rate of
56.8
the surety being used to post a bail bond. Except as provided in subdivision 2 or in a situation
56.9
where cash bail is set by the court under subdivision 5, the rate charged must not be less
56.10
than the surety's filed rate.
56.11
(b) A producer is prohibited from providing a premium rebate.
56.12
(c) A producer may charge travel or other related fees, provided the producer complies
56.13
with section 60K.46, subdivision 2.
56.14
Subd. 2. Minimum premium. A producer must charge a minimum premium of $100.
56.15
Any premium amount must be included in the surety's rate filing with the commissioner.
56.16
Subd. 3. Bail bonds less than $10,000. (a) A producer is prohibited from posting a bail
56.17
bond with a penal sum of $10,000 or less unless the producer has:
56.18
(1) received at least 50 percent of the total premium owed under the surety's rate filing;
56.19
(2) provided the depositor with a receipt that indicates the premium paid; and
56.20
(3) if the full premium is not collected before posting the bond, a signed promissory
56.21
note must be obtained requiring the unpaid premium in full within four months of the date
56.22
the bond is posted.
56.23
(b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
56.24
or bail bond agency form as approved by the commissioner. The maximum annual interest
56.25
rate allowed on a promissory note under this subdivision is six percent. A promissory note
56.26
may authorize collection of the actual costs incurred to collect the premium, including
56.27
reasonable attorney fees, in the event of a default.
56.28
Subd. 4. Bail bonds greater than $10,000. (a) A producer is prohibited from posting
56.29
a bail bond with a penal sum greater than $10,000 unless the producer has:
56.30
(1) received at least 30 percent of the total premium owed under the surety's rate filing;
56.31
(2) provided the depositor with a receipt that indicates the premium paid; and
56
Article 2 Sec. 33.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
57.1
(3) if the full premium is not collected before posting the bond, a signed promissory
57.2
note must be obtained requiring the unpaid premium in full within 12 months of the date
57.3
the bond is posted.
57.4
(b) A promissory note issued under paragraph (a), clause (3), must be made on a surety
57.5
or bail bond agency form as approved by the commissioner. The maximum annual interest
57.6
rate allowed on a promissory note under this subdivision is six percent. A promissory note
57.7
may authorize collection of the actual costs incurred to collect the premium, including
57.8
reasonable attorney fees, in the event of a default.
57.9
Subd. 5. Alternative premium structure. (a) A bail bond agency or producer may
57.10
include an alternative premium structure as part of the bail bond agency or producer's surety
57.11
rate filing submitted to the commissioner.
57.12
(b) If a court sets cash bail at 15 percent or less of the bond's penal amount, a surety,
57.13
bail bond agency, or producer may charge an alternative premium that is as low as one-half
57.14
of the cash bail amount set by the court. An alternative premium charged under this
57.15
subdivision is subject to the minimum premium requirement under subdivision 2.
57.16
(c) A bail bond agency or producer is required to obtain from the court documentation
57.17
indicating the cash bail amount set by the court and must maintain the documentation in
57.18
the bond file.
57.19
(d) A bail bond agency and producer must maintain a log of all bonds where an alternative
57.20
premium was charged under this subdivision.
57.21
(e) Subdivisions 3 and 4 apply to the payment of an alternative premium structure under
57.22
this subdivision.
57.23
Subd. 6. Late payments. If a payment, including a minimum monthly payment, that is
57.24
required under a promissory note executed pursuant to subdivision 3 or 4 is more than 90
57.25
days late, the bail bond agency or producer must, within 20 days of the date a payment
57.26
becomes 90 days late:
57.27
(1) for amounts owed that are $2,500 or less, assign the debt to a Minnesota-licensed
57.28
debt collector; or
57.29
(2) for amounts owed that are greater than $2,500:
57.30
(i) file a civil action against the delinquent premium payer; and
57.31
(ii) make all reasonable efforts to:
57.32
(A) serve a summons and complaint;
57
Article 2 Sec. 33.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
58.1
(B) enter judgment, unless the matter is settled while the action is pending; and
58.2
(C) enforce the judgment, which may be satisfied by assigning the debt to a licensed
58.3
debt collector.
58.4
Subd. 7. Form of payment. A surety, bail bond agency, or producer may only accept
58.5
cash, money orders, checks, wire transfers, electronic funds transfers, debit cards, prepaid
58.6
cash cards, or credit cards as a premium payment method. Any balance owed must be
58.7
evidenced by a promissory note, as provided under subdivision 3 or 4.
58.8
Subd. 8. Premium trust account. (a) A payment made to or received by the producer,
58.9
bail bond agency, or surety must be deposited into a premium trust account that is maintained
58.10
by the producer, bail bond agency, or surety within seven business days.
58.11
(b) A premium trust account must be used only for premium payments and travel or
58.12
other related fees authorized under subdivision 1, paragraph (c). A producer, bail bond
58.13
agency, or surety is prohibited from depositing any other money into a premium trust
58.14
account.
58.15
(c) A deposit into a premium trust account must be accompanied by a deposit slip that:
58.16
(1) separately designates the principal; and
58.17
(2) lists the power of attorney number of the bond for which the payment is being
58.18
collected.
58.19
(d) Money may be withdrawn from a premium trust account only to:
58.20
(1) pay the net premium to the surety or bail bond agency;
58.21
(2) pay a surety or bail bond agency any build-up fund or escrow account required by
58.22
a contract executed by the producer and the surety or bail bond agency;
58.23
(3) pay or reimburse travel or other related fees authorized under subdivision 1, paragraph
58.24
(c);
58.25
(4) pay or reimburse the producer any fees or charges deducted electronically by credit
58.26
card processing vendors, provided the fees and charges comply with section 60K.46,
58.27
subdivision 2; and
58.28
(5) distribute any excess amounts to the operating account.
58
Article 2 Sec. 33.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
59.1
Sec. 34. [60M.03] COLLATERAL.
59.2
Subdivision 1. Collateral generally. When collateral is accepted, the producer, surety,
59.3
or bail bond agency must provide a written and numbered receipt to the depositor. The
59.4
receipt must:
59.5
(1) contain the date; depositor's name and address; bail bond agency's name and address;
59.6
surety's name and address; defendant's name; bond amount; and cash amount or a detailed
59.7
description of the collateral, if the collateral is not cash; and
59.8
(2) be signed by:
59.9
(i) the producer, surety, or bail bond agency; and
59.10
(ii) the depositor.
59.11
Subd. 2. Collateral received; transfer; control. (a) Except as otherwise provided under
59.12
paragraph (b), a producer or bail bond agency must transfer all cash and noncash collateral
59.13
that the producer or bail bond agency receives to the surety.
59.14
(b) A surety may, at the surety's discretion, permit: (1) a producer to transfer all cash
59.15
and noncash collateral that the producer receives to the bail bond agency; and (2) the bail
59.16
bond agency to retain possession and control over the cash and noncash collateral without
59.17
transferring the cash and noncash collateral to the surety. If a surety exercises the surety's
59.18
discretion under this paragraph, the bail bond agency assumes the surety's responsibilities
59.19
and responsibilities under this section. A producer is prohibited from retaining possession
59.20
or control of cash or noncash collateral beyond the time periods established in this section.
59.21
Subd. 3. Cash collateral trust account. (a) All cash collateral must be deposited into
59.22
a cash collateral account maintained by a surety or bail bond agency as provided in
59.23
subdivision 2, paragraph (b), within seven business days of the date the cash collateral is
59.24
received.
59.25
(b) All checks, money orders, wire transfers, or similar money transfer for collateral
59.26
must be made payable to the bail bond agency and deposited into the surety's or bail bond
59.27
agency's collateral account within ten business days of the date the payment was received.
59.28
(c) When required by law, a bail bond agency or producer must: (1) file an IRS Form
59.29
8300 and informational notice; and (2) retain a copy of the filed IRS Form 8300 and
59.30
informational notice in the bail bond agency's or producer's files.
59.31
Subd. 4. Separate cash collateral account. At the surety's discretion, the surety or a
59.32
bail bond agency may maintain a separate cash collateral trust account. A cash collateral
59
Article 2 Sec. 34.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
60.1
trust account may be an interest-bearing account or a noninterest-bearing account. If the
60.2
separate cash collateral trust account is an interest-bearing account, the interest earned is
60.3
for the benefit of the depositor.
60.4
Subd. 5. Surety liable. The surety is liable to return any cash or noncash collateral that
60.5
a producer or bail bond agency collects, less any amounts owed under subdivision 9,
60.6
paragraph (b), even if the collected collateral is not transferred to the surety.
60.7
Subd. 6. Prohibitions. (a) A surety, bail bond agency, or producer is prohibited from
60.8
collecting cash collateral in excess of the bond's penal sum.
60.9
(b) A surety, bail bond agency, or producer is prohibited from using collateral for personal
60.10
benefit or gain.
60.11
(c) A surety, bail bond agency, or producer is prohibited from taking a quitclaim deed
60.12
on real property as collateral for a bond.
60.13
Subd. 7. Collateral log. (a) A bail bond agency or producer must maintain a collateral
60.14
log that includes:
60.15
(1) the power of attorney number;
60.16
(2) the principal's name;
60.17
(3) the depositor's name;
60.18
(4) the cash collateral amount, including whether the cash collateral is being held in an
60.19
interest-bearing account;
60.20
(5) if the collateral is noncash collateral, a detailed description of the collateral;
60.21
(6) the date the collateral was taken; and
60.22
(7) the dates the collateral was sent to the surety, returned to the depositor, liquidated,
60.23
or applied to a loss or cost incurred by the producer, bail bond agency, or surety.
60.24
(b) For purposes of paragraph (a), an indemnity agreement does not constitute collateral
60.25
and is not required to be included in the collateral log. For purposes of paragraph (a), clause
60.26
(7), the amount of a loss incurred must be listed separately from other costs in the collateral
60.27
log.
60.28
Subd. 8. Mortgages and deeds of trust. (a) A mortgage or deed of trust taken as
60.29
collateral for a bond must name the surety as a mortgagee. At the discretion of the surety,
60.30
a bail bond agency may be named as the mortgagee in lieu of the surety being named as the
60.31
mortgagee.
60
Article 2 Sec. 34.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
61.1
(b) A producer is prohibited from being named as a mortgagee for a mortgage or deed
61.2
of trust taken as collateral for a bond.
61.3
Subd. 9. Return of collateral. (a) A surety or bail bond agency that controls the collateral
61.4
must return cash and noncash collateral to the depositor named in the collateral receipt
61.5
within 21 days of the date the depositor provides the surety or bail bond agency with written
61.6
proof that the bond has been discharged.
61.7
(b) If the depositor owes the surety, bail bond agency, or producer a premium; is liable
61.8
for a loss or expense related to a breach of the bond; or is liable pursuant to the terms of an
61.9
indemnity or other agreement, the surety or bail bond agency may retain from the collateral
61.10
all money required to satisfy the depositor's debts.
61.11
(c) If all of the depositor's debts secured by collateral are satisfied, the surety or bail
61.12
bond agency must provide documentation to release any liens, security interests, mortgages,
61.13
or other security interests that were filed or obtained in relation to the collateral. The
61.14
documentation must be provided within 21 days of the date the depositor provides the surety
61.15
or bail bond agency with written proof that the bond has been discharged.
61.16
Subd. 10. Bond or indemnity agreement; breach. If a bond or indemnity agreement
61.17
is breached and the surety, bail bond agency, or producer suffers a loss, the surety or bail
61.18
bond agency that controls the collateral must send to the depositor written notice that notifies
61.19
the depositor that the surety or bail bond agency intends to liquidate noncash collateral. The
61.20
written notice must be sent by certified mail to the depositor's last known address at least
61.21
30 days before the date the surety or bail bond agency liquidates the noncash collateral.
61.22
Subd. 11. Compliance with Minnesota law. Any action taken to enforce or foreclose
61.23
on cash or noncash collateral must comply with Minnesota law.
61.24
Subd. 12. Collateral documentation; audit and inspection. (a) All collateral and related
61.25
documentation held in trust by the surety or bail bond agency must be made available for
61.26
immediate audit and inspection by the department.
61.27
(b) All collateral and related documentation held in trust by the bail bond agency must
61.28
be made available for immediate audit and inspection by the surety.
61.29
Sec. 35. [60M.04] PRODUCER AUDITS.
61.30
Subdivision 1. Premium audits. (a) By April 30 each year, a surety must audit each
61.31
licensed bail bond producer's bonds written during the previous calendar year to ensure the
61.32
licensed bail bond producer has complied with this subdivision.
61
Article 2 Sec. 35.
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3rd Engrossment
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REVISOR
RSI
62.1
(b) The premium audits must include a review of an adequate sample of bonds written
62.2
by each bail bond producer. A review sample is adequate if it consists of the lesser of: (1)
62.3
20 percent of the bonds written by the bail bond producer; (2) 24 bonds; or (3) all of the
62.4
bonds written by the bail bond producer, if the bail bond producer wrote fewer than 12
62.5
bonds during the previous calendar year. The audit sample must include the four largest
62.6
bonds written by the bail bond producer and four bonds that charged an alternative premium
62.7
under section 60M.02, subdivision 5, if applicable. Of the remaining bonds audited and to
62.8
the extent the quantity of bonds supports the percentages, 50 percent must be randomly
62.9
selected bonds with a penal sum that is $10,000 or less, and 50 percent must be randomly
62.10
selected bonds with a penal sum that is greater than $10,000.
62.11
(c) The premium audit must be conducted at the producer's office or the bail bond
62.12
agency's office, depending on which entity maintains the physical records. The surety must
62.13
not disclose to the producer or bail bond agency, or anyone affiliated with the surety or bail
62.14
bond agency, which files the surety intends to audit until the surety's on-site audit of the
62.15
producer begins.
62.16
(d) For each bond audited, the surety must confirm that:
62.17
(1) the proper premium was charged and collected, including a review of the premium
62.18
account statements and deposit slips;
62.19
(2) a proper premium receipt is in the producer's file;
62.20
(3) if the full premium was not paid before the bond was posted, a proper promissory
62.21
note was executed; and
62.22
(4) if the premium was not paid as required, the producer complied with section 60M.02,
62.23
subdivision 6.
62.24
(e) An annual premium audit under this section must also include a follow-up review
62.25
of each bond audited the previous year for which full premium had not yet been collected
62.26
at the time the audit occurred. For each bond subject to a follow-up review, the surety must:
62.27
(1) review the premium account and deposit slips to confirm that the full premium was
62.28
collected; or
62.29
(2) if full payment of the premium was not received, confirm that the producer complied
62.30
with section 60M.02, subdivision 6.
62.31
(f) A bail bond agency or producer is prohibited from acting on behalf of the surety to
62.32
conduct the bail bond agency's or producer's own bail bond agency or producer audits.
62
Article 2 Sec. 35.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
63.1
Subd. 2. Collateral audits. (a) By April 30 each year, a surety must audit each licensed
63.2
bail bond producer's bonds written during the previous calendar year to ensure the licensed
63.3
bail bond producer has complied with this subdivision.
63.4
(b) A collateral audit under this subdivision must include confirmation that:
63.5
(1) a collateral log was maintained;
63.6
(2) a cash collateral account exists;
63.7
(3) the balance of the cash collateral indicated on the collateral log is identical to the
63.8
amount held in the collateral trust account; and
63.9
(4) a collateral receipt exists for collateral collected, as represented by a sampling of the
63.10
lesser of: (i) 20 percent of all bonds secured by collateral; or (ii) 12 bonds that were secured
63.11
by collateral.
63.12
Subd. 3. Audits report. (a) By May 31 each year, a surety must prepare a report of the
63.13
audits conducted under this section during that year. The report must include:
63.14
(1) a list of the bonds audited under subdivision 1 for each producer, including the power
63.15
of attorney number used for each audited bond and whether full premium payment was
63.16
made by the date the audit occurred;
63.17
(2) a list of the bonds included in a follow-up review of the previous year's audit,
63.18
including whether full premium payment was collected by the date the audit occurred;
63.19
(3) the compliance certifications required under section 60M.07, subdivision 4; and
63.20
(4) details regarding any violations discovered during the audit or a statement that no
63.21
violations were discovered, as applicable.
63.22
(b) The annual report under this subdivision must be maintained for a period of at least
63.23
36 months from the date the report is complete. Annual reports must be submitted to the
63.24
commissioner by June 30 each year.
63.25
Sec. 36. [60M.05] SOLICITATION.
63.26
Subdivision 1. Solicitation generally. (a) A producer is prohibited from, in or on the
63.27
grounds of a jail, prison, or other location where an incarcerated person is confined, or in
63.28
or on the grounds of a court unless requested by the principal, a potential indemnitor, or the
63.29
legal counsel of a principal:
63.30
(1) approaching, enticing, inviting, or soliciting a person to use a bail bond agency's
63.31
services;
63
Article 2 Sec. 36.
S4097-3
3rd Engrossment
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REVISOR
RSI
64.1
(2) distributing, displaying, or wearing an item that advertises a bail bond agency's
64.2
services;
64.3
(3) no producer or bail bond agency is permitted to solicit by calling or leaving messages
64.4
for principals on jail phones or any other messaging devices available to principals, while
64.5
in custody; or
64.6
(4) no producer or bail bond agency is permitted to place money on the canteen or books
64.7
of any individual held in custody.
64.8
(b) Notwithstanding paragraph (a), clause (3), permissible print advertising in a jail is
64.9
limited to:
64.10
(1) a listing in a telephone directory; and
64.11
(2) posting the producer's or bail bond agency's name, address, and telephone number
64.12
in a designated location within the jail, as approved by the jail.
64.13
Subd. 2. Identification; marketing material. A producer is prohibited from wearing
64.14
or displaying any information, other than identification approved by the surety or bail bond
64.15
agency, which constitutes marketing material that a surety or bail bond agency must approve
64.16
and maintain under Minnesota Rules, chapter 2790. A producer is prohibited from displaying
64.17
any information constituting marketing material in or on the property or grounds of: (1) a
64.18
jail, prison, or other location where incarcerated people are confined; or (2) a court.
64.19
Subd. 3. Other prohibited conduct. (a) A producer is prohibited from loitering in or
64.20
about the courthouse, jail, or any other place where individuals are held in custody.
64.21
(b) A producer is prohibited from making unauthorized and unsolicited cold calls without
64.22
having first spoken with the principal.
64.23
(c) A producer is prohibited from soliciting a bond to a person by recorded or electronic
64.24
communication, or by live telephone contact, unless the producer otherwise complies with
64.25
applicable state and federal law, including but not limited to:
64.26
(1) the National Do Not Call Registry under Code of Federal Regulations, title 16, part
64.27
310; and
64.28
(2) the Telephone Consumer Protection Act of 1991, Code of Federal Regulations, title
64.29
47, part 64.1200.
64.30
(d) A surety, bail bond agency, or producer is prohibited from obtaining a credit check
64.31
on a person unless the person has authorized the surety, bail bond agency, or producer to
64
Article 2 Sec. 36.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
65.1
do so in writing. The surety, bail bond agency, or producer must retain the written
65.2
authorization provided by the person subject to the credit check.
65.3
Subd. 4. Compliance with other law. (a) A surety, bail bond agency, and producer
65.4
must comply with all federal and state privacy laws related to information provided to a
65.5
producer during the application process and during bond underwriting by a bond principal,
65.6
indemnitor, or other person.
65.7
(b) A surety, bail bond agency, and producer must comply with sections 60K.46,
65.8
subdivision 6; 72A.494; 72A.496, subdivision 1; 72A.501; and 72A.502, subdivision 1.
65.9
(c) A surety, bail bond agency, and producer must receive preauthorization before
65.10
collecting and disclosing personal or privileged information about an applicant or proposed
65.11
insured, and must provide all notices otherwise required by Minnesota law.
65.12
(d) A surety, bail bond agency, and producer must otherwise comply with all applicable
65.13
Minnesota law.
65.14
Subd. 5. Insurance transaction. The act of soliciting, underwriting, negotiating, or
65.15
selling a bail bond constitutes an insurance transaction.
65.16
Sec. 37. [60M.06] UNLICENSED INDIVIDUALS; NO REBATES OR PAYMENT.
65.17
(a) With the exception of a contracted bail enforcement agent offering a reward for
65.18
information that assists in the location and apprehension of a principal under section 629.63,
65.19
a surety, bail bond agency, or producer is prohibited from paying a fee or commission, or
65.20
otherwise giving or promising anything of value, to: (1) a jailer, police officer, peace officer,
65.21
or any other person who has the power to arrest or hold an individual in custody; or (2) a
65.22
judge, public official, or public employee.
65.23
(b) A surety, bail bond agency, or producer is prohibited from paying a fee or rebate, or
65.24
otherwise giving or promising anything of value, to the individual seeking the producer's
65.25
services or the individual seeking the producer's services on another individual's behalf.
65.26
(c) A surety, bail bond agency, or producer is prohibited from paying a fee or commission,
65.27
or otherwise giving or promising anything of value, to a person for selling, soliciting, or
65.28
negotiating a bail bond if the person is not properly licensed as a producer.
65.29
(d) A surety, bail bond agency, or producer is prohibited from paying a fee, rebate, or
65.30
commission, or otherwise giving or promising anything of value, to an inmate for referring
65.31
business or for any other reason related to soliciting, negotiating, or selling a bail bond.
65
Article 2 Sec. 37.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
66.1
Sec. 38. [60M.07] OTHER PROVISIONS.
66.2
Subdivision 1. Compliance with standards of conduct. A producer must comply with
66.3
the Minnesota Court Administrator's Office's bail bond procedures and standards of conduct,
66.4
including but not limited to while in or on the property of courts, jails, or other detention
66.5
facilities in Minnesota. A surety or bail bond agency must require the surety or bail bond
66.6
agency's producers to affirm that the producer complies with any changes to the bail bond
66.7
procedures and standards of conduct as the changes are posted to the Minnesota state court
66.8
website or the Minnesota Court Administrator's Office's website.
66.9
Subd. 2. No waiver. A producer is prohibited from soliciting or accepting a waiver of
66.10
any requirement under this chapter.
66.11
Subd. 3. Record maintenance. (a) A bail bond agency and producer must maintain the
66.12
following records on each bond for at least seven years after the date the bond is terminated:
66.13
(1) power of attorney;
66.14
(2) premium receipts;
66.15
(3) the promissory note for unpaid premium, if any;
66.16
(4) the cash bond amount set by the court, if an amount less than the filed rate is accepted
66.17
for the premium;
66.18
(5) all documents related to any lawsuit filed to collect the premium;
66.19
(6) indemnity agreements;
66.20
(7) collateral receipts, if any;
66.21
(8) proof that collateral was returned, if any;
66.22
(9) proof of bond exoneration or forfeiture payment;
66.23
(10) all records relating to liquidating and converting collateral, including fees or costs;
66.24
and
66.25
(11) proof of any expenses incurred or losses paid by the surety, bail bond agency, or
66.26
producer.
66.27
(b) A bail bond agency and producer must maintain all premium account, collateral
66.28
account, and operating account bank records, including deposit slips, for at least seven years
66.29
after the records are made available.
66.30
(c) All records that a bail bond agency or producer maintain under this chapter must be
66.31
kept in the bail bond agency or producer's office or storage location, as applicable. If a bail
66
Article 2 Sec. 38.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
67.1
bond agency or producer's relationship with a surety is terminated, the information and
67.2
documentation must be immediately transferred to:
67.3
(1) the bail bond agency, if the producer is terminated; or
67.4
(2) the surety, if the bail bond agency is terminated.
67.5
(d) A bail bond agency and producer's records must be available for the commissioner
67.6
or the surety to inspect, with or without notice.
67.7
Subd. 4. Compliance certification. (a) During the surety's annual audit of a producer,
67.8
the producer must sign a compliance certification form that attests to the producer's
67.9
compliance with this chapter during the previous calendar year.
67.10
(b) Before a producer is appointed by a surety and at each license renewal thereafter, a
67.11
producer must sign an affidavit of compliance form in which the producer acknowledges
67.12
the producer is familiar and continually complies with the requirements under this chapter.
67.13
The surety must retain completed affidavits and send requested affidavits to the commissioner
67.14
within ten days of the date an affidavit is requested.
67.15
(c) The commissioner must establish the compliance certification and affidavit of
67.16
compliance forms for use under this subdivision.
67.17
Subd. 5. Producer termination; notice. (a) If a producer's relationship with a surety is
67.18
voluntarily or involuntarily terminated due to a violation of this chapter or because the
67.19
surety determined the producer violated this chapter during an annual audit, the surety must,
67.20
within 30 days of the date the producer is terminated, provide the commissioner with the
67.21
terminated producer's name and the reason the producer was terminated.
67.22
(b) Another surety is prohibited from appointing a producer subject to a termination
67.23
under paragraph (a) unless the department approves the appointment.
67.24
Subd. 6. Access to information. A surety, bail bonds agency, and producer are considered
67.25
a government associated entity and are allowed to apply and be granted access to the
67.26
Minnesota Government Access system under the Court Access Rules.
67.27
Subd. 7. Surrender of a principal for bail revocation. The courts, jails, and sheriff
67.28
offices in Minnesota must comply with section 629.63, allowing for a principal to be
67.29
surrendered and received by the jail of the county that the bail bond was originated from
67.30
and to be held in custody until the principal can have a court hearing where the surety, bail
67.31
bond agency, or producer can give evidence and make motion for the revocation and
67.32
discharge of the bail bond.
67
Article 2 Sec. 38.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
68.1
Subd. 8. Forfeiture timing requirement. The court must order a bail bond forfeited
68.2
and send notice to the surety, bail bond agency, or producer no later than 30 days from the
68.3
date of a principal failing to appear at a scheduled hearing. If a court fails to forfeit a bail
68.4
bond within 30 days of a principal failing to appear or fail to send notice within seven days
68.5
of the forfeiture to the surety, bail bond agency, or producer, the court must allow for a
68.6
reinstatement and discharge of the bail bond without penalty. If a court fails to take action
68.7
against the bail bond within 30 days of a principal failing to appear at a hearing, the court
68.8
must allow for revocation and discharge without penalty.
68.9
Sec. 39. Minnesota Statutes 2023 Supplement, section 80A.50, is amended to read:
68.10
80A.50 SECTION 302; FEDERAL COVERED SECURITIES; SMALL
68.11
CORPORATE OFFERING REGISTRATION.
68.12
(a) Federal covered securities.
68.13
(1) Required filing of records. With respect to a federal covered security, as defined
68.14
in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. Section 77r(b)(2)), that is not
68.15
otherwise exempt under sections 80A.45 through 80A.47, a rule adopted or order issued
68.16
under this chapter may require the filing of any or all of the following records:
68.17
(A) before the initial offer of a federal covered security in this state, all records that are
68.18
part of a federal registration statement filed with the Securities and Exchange Commission
68.19
under the Securities Act of 1933 and a consent to service of process complying with section
68.20
80A.88 signed by the issuer;
68.21
(B) after the initial offer of the federal covered security in this state, all records that are
68.22
part of an amendment to a federal registration statement filed with the Securities and
68.23
Exchange Commission under the Securities Act of 1933; and
68.24
(C) to the extent necessary or appropriate to compute fees, a report of the value of the
68.25
federal covered securities sold or offered to persons present in this state, if the sales data
68.26
are not included in records filed with the Securities and Exchange Commission.
68.27
(2) Notice filing effectiveness and renewal. A notice filing under subsection (a) is
68.28
effective for one year commencing on the later of the notice filing or the effectiveness of
68.29
the offering filed with the Securities and Exchange Commission. On or before expiration,
68.30
the issuer may renew a notice filing by filing a copy of those records filed by the issuer with
68.31
the Securities and Exchange Commission that are required by rule or order under this chapter
68.32
to be filed. A previously filed consent to service of process complying with section 80A.88
68
Article 2 Sec. 39.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
69.1
may be incorporated by reference in a renewal. A renewed notice filing becomes effective
69.2
upon the expiration of the filing being renewed.
69.3
(3) Notice filings for federal covered securities under section 18(b)(4)(D). With
69.4
respect to a security that is a federal covered security under Section 18(b)(4)(D) of the
69.5
Securities Act of 1933 (15 U.S.C. Section 77r(b)(4)(D)), a rule under this chapter may
69.6
require a notice filing by or on behalf of an issuer to include a copy of Form D, including
69.7
the Appendix, as promulgated by the Securities and Exchange Commission, and a consent
69.8
to service of process complying with section 80A.88 signed by the issuer not later than 15
69.9
days after the first sale of the federal covered security in this state.
69.10
(4) Stop orders. Except with respect to a federal security under Section 18(b)(1) of the
69.11
Securities Act of 1933 (15 U.S.C. Section 77r(b)(1)), if the administrator finds that there is
69.12
a failure to comply with a notice or fee requirement of this section, the administrator may
69.13
issue a stop order suspending the offer and sale of a federal covered security in this state.
69.14
If the deficiency is corrected, the stop order is void as of the time of its issuance and no
69.15
penalty may be imposed by the administrator.
69.16
(b) Small corporation offering registration.
69.17
(1) Registration required. A security meeting the conditions set forth in this section
69.18
may be registered as set forth in this section.
69.19
(2) Availability. Registration under this section is available only to the issuer of securities
69.20
and not to an affiliate of the issuer or to any other person for resale of the issuer's securities.
69.21
The issuer must be organized under the laws of one of the states or possessions of the United
69.22
States. The securities offered must be exempt from registration under the Securities Act of
69.23
1933 pursuant to Rule 504 of Regulation D (15 U.S.C. Section 77c).
69.24
(3) Disqualification. Registration under this section is not available to any of the
69.25
following issuers:
69.26
(A) an issuer subject to the reporting requirements of Section 13 or 15(d) of the Securities
69.27
Exchange Act of 1934;
69.28
(B) an investment company;
69.29
(C) a development stage company that either has no specific business plan or purpose
69.30
or has indicated that its business plan is to engage in a merger or acquisition with an
69.31
unidentified company or companies or other entity or person;
69
Article 2 Sec. 39.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
70.1
(D) an issuer if the issuer or any of its predecessors, officers, directors, governors,
70.2
partners, ten percent stock or equity holders, promoters, or any selling agents of the securities
70.3
to be offered, or any officer, director, governor, or partner of the selling agent:
70.4
(i) has filed a registration statement that is the subject of a currently effective registration
70.5
stop order entered under a federal or state securities law within five years before the filing
70.6
of the small corporate offering registration application;
70.7
(ii) has been convicted within five years before the filing of the small corporate offering
70.8
registration application of a felony or misdemeanor in connection with the offer, purchase,
70.9
or sale of a security or a felony involving fraud or deceit, including, but not limited to,
70.10
forgery, embezzlement, obtaining money under false pretenses, larceny, or conspiracy to
70.11
defraud;
70.12
(iii) is currently subject to a state administrative enforcement order or judgment entered
70.13
by a state securities administrator or the Securities and Exchange Commission within five
70.14
years before the filing of the small corporate offering registration application, or is subject
70.15
to a federal or state administrative enforcement order or judgment in which fraud or deceit,
70.16
including, but not limited to, making untrue statements of material facts or omitting to state
70.17
material facts, was found and the order or judgment was entered within five years before
70.18
the filing of the small corporate offering registration application;
70.19
(iv) is currently subject to an order, judgment, or decree of a court of competent
70.20
jurisdiction temporarily restraining or enjoining, or is subject to an order, judgment, or
70.21
decree of a court of competent jurisdiction permanently restraining or enjoining the party
70.22
from engaging in or continuing any conduct or practice in connection with the purchase or
70.23
sale of any security or involving the making of a false filing with a state or with the Securities
70.24
and Exchange Commission entered within five years before the filing of the small corporate
70.25
offering registration application; or
70.26
(v) is subject to a state's administrative enforcement order, or judgment that prohibits,
70.27
denies, or revokes the use of an exemption for registration in connection with the offer,
70.28
purchase, or sale of securities,
70.29
(I) except that clauses (i) to (iv) do not apply if the person subject to the disqualification
70.30
is duly licensed or registered to conduct securities-related business in the state in which the
70.31
administrative order or judgment was entered against the person or if the dealer employing
70.32
the party is licensed or registered in this state and the form BD filed in this state discloses
70.33
the order, conviction, judgment, or decree relating to the person, and
70
Article 2 Sec. 39.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
71.1
(II) except that the disqualification under this subdivision is automatically waived if the
71.2
state securities administrator or federal agency that created the basis for disqualification
71.3
determines upon a showing of good cause that it is not necessary under the circumstances
71.4
to deny the registration.
71.5
(4) Filing and effectiveness of registration statement. A small corporate offering
71.6
registration statement must be filed with the administrator. If no stop order is in effect and
71.7
no proceeding is pending under section 80A.54, such registration statement shall become
71.8
effective automatically at the close of business on the 20th day after filing of the registration
71.9
statement or the last amendment of the registration statement or at such earlier time as the
71.10
administrator may designate by rule or order. For the purposes of a nonissuer transaction,
71.11
other than by an affiliate of the issuer, all outstanding securities of the same class identified
71.12
in the small corporate offering registration statement as a security registered under this
71.13
chapter are considered to be registered while the small corporate offering registration
71.14
statement is effective. A small corporate offering registration statement is effective for one
71.15
year after its effective date or for any longer period designated in an order under this chapter.
71.16
A small corporate offering registration statement may be withdrawn only with the approval
71.17
of the administrator.
71.18
(5) Contents of registration statement. A small corporate offering registration statement
71.19
under this section shall be on Form U-7, including exhibits required by the instructions
71.20
thereto, as adopted by the North American Securities Administrators Association, or such
71.21
alternative form as may be designated by the administrator by rule or order and must include:
71.22
(A) a consent to service of process complying with section 80A.88;
71.23
(B) a statement of the type and amount of securities to be offered and the amount of
71.24
securities to be offered in this state;
71.25
(C) a specimen or copy of the security being registered, unless the security is
71.26
uncertificated, a copy of the issuer's articles of incorporation and bylaws or their substantial
71.27
equivalents in effect, and a copy of any indenture or other instrument covering the security
71.28
to be registered;
71.29
(D) a signed or conformed copy of an opinion of counsel concerning the legality of the
71.30
securities being registered which states whether the securities, when sold, will be validly
71.31
issued, fully paid, and nonassessable and, if debt securities, binding obligations of the issuer;
71.32
(E) the states (i) in which the securities are proposed to be offered; (ii) in which a
71.33
registration statement or similar filing has been made in connection with the offering
71.34
including information as to effectiveness of each such filing; and (iii) in which a stop order
71
Article 2 Sec. 39.
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REVISOR
RSI
72.1
or similar proceeding has been entered or in which proceedings or actions seeking such an
72.2
order are pending;
72.3
(F) a copy of the offering document proposed to be delivered to offerees; and
72.4
(G) a copy of any other pamphlet, circular, form letter, advertisement, or other sales
72.5
literature intended as of the effective date to be used in connection with the offering and
72.6
any solicitation of interest used in compliance with section 80A.46(17)(B).
72.7
(6) Copy to purchaser. A copy of the offering document as filed with the administrator
72.8
must be delivered to each person purchasing the securities prior to sale of the securities to
72.9
such person.
72.10
(c) Offering limit. Offers and sales of securities under a small corporate offering
72.11
registration as set forth in this section are allowed up to the limit prescribed by Code of
72.12
Federal Regulations, title 17, part 230.504 (b)(2), as amended.
72.13
(d) Regulation A - Tier 2 filing requirements.
72.14
(1) Initial filing. An issuer planning to offer and sell securities in Minnesota in an
72.15
offering exempt under Tier 2 of federal Regulation A must, at least 21 calendar days before
72.16
the date of the initial sale of securities in Minnesota, submit to the administrator:
72.17
(A) a completed Regulation A - Tier 2 offering notice filing form or copies of all the
72.18
documents filed with the Securities Exchange Commission; and
72.19
(B) a consent to service of process on Form U-2, if consent to service of process is not
72.20
provided in the Regulation A - Tier 2 offering notice filing form.
72.21
The initial notice filing made in Minnesota is effective for 12 months after the date the
72.22
filing is made.
72.23
(2) Renewal. For each additional 12-month period in which the same offering is
72.24
continued, an issuer conducting a Tier 2 offering under federal Regulation A may renew
72.25
the notice filing by filing (i) the Regulation A - Tier 2 offering notice filing form marked
72.26
"renewal," or (ii) a cover letter or other document requesting renewal. The renewal filing
72.27
must be made on or before the date notice filing expires.
72.28
(3) Amendment. An issuer may increase the amount of securities offered in Minnesota
72.29
by submitting a Regulation A - Tier 2 offering notice filing form or other document
72.30
describing the transaction.
72
Article 2 Sec. 39.
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REVISOR
RSI
73.1
Sec. 40. Minnesota Statutes 2022, section 80A.61, is amended to read:
73.2
80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
73.3
FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
73.4
REPRESENTATIVE.
73.5
(a) Application for initial registration by broker-dealer, agent, investment adviser,
73.6
or investment adviser representative. A person shall register as a broker-dealer, agent,
73.7
investment adviser, or investment adviser representative by filing an application and a
73.8
consent to service of process complying with section 80A.88, and paying the fee specified
73.9
in section 80A.65 and any reasonable fees charged by the designee of the administrator for
73.10
processing the filing. The application must contain:
73.11
(1) the information or record required for the filing of a uniform application; and
73.12
(2) upon request by the administrator, any other financial or other information or record
73.13
that the administrator determines is appropriate.
73.14
(b) Amendment. If the information or record contained in an application filed under
73.15
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
73.16
shall promptly file a correcting amendment.
73.17
(c) Effectiveness of registration. If an order is not in effect and a proceeding is not
73.18
pending under section 80A.67, registration becomes effective at noon on the 45th day after
73.19
a completed application is filed, unless the registration is denied. A rule adopted or order
73.20
issued under this chapter may set an earlier effective date or may defer the effective date
73.21
until noon on the 45th day after the filing of any amendment completing the application.
73.22
(d) Registration renewal. A registration is effective until midnight on December 31 of
73.23
the year for which the application for registration is filed. Unless an order is in effect under
73.24
section 80A.67, a registration may be automatically renewed each year by filing such records
73.25
as are required by rule adopted or order issued under this chapter, by paying the fee specified
73.26
in section 80A.65, and by paying costs charged by the designee of the administrator for
73.27
processing the filings.
73.28
(e) Additional conditions or waivers. A rule adopted or order issued under this chapter
73.29
may impose such other conditions, not inconsistent with the National Securities Markets
73.30
Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
73.31
part, specific requirements in connection with registration as are in the public interest and
73.32
for the protection of investors.
73
Article 2 Sec. 40.
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REVISOR
RSI
74.1
(f) Funding portal registration. A funding portal that has its principal place of business
74.2
in the state of Minnesota shall register with the state of Minnesota by filing with the
74.3
administrator a copy of the information or record required for the filing of an application
74.4
for registration as a funding portal in the manner established by the Securities and Exchange
74.5
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
74.6
any rule adopted or order issued, and any amendments thereto.
74.7
(g) Application for investment adviser representative registration.
74.8
(1) The application for initial registration as an investment adviser representative pursuant
74.9
to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
74.10
Industry Registration or Transfer) in accordance with the form instructions and by filing
74.11
the form U-4 with the IARD. The application for initial registration must also include the
74.12
following:
74.13
(i) proof of compliance by the investment adviser representative with the examination
74.14
requirements of:
74.15
(A) the Uniform Investment Adviser Law Examination (Series 65); or
74.16
(B) the General Securities Representative Examination (Series 7) and the Uniform
74.17
Combined State Law Examination (Series 66);
74.18
(ii) any other information the administrator may reasonably require.
74.19
(2) The application for the annual renewal registration as an investment adviser
74.20
representative shall be filed with the IARD.
74.21
(3)(i) The investment adviser representative is under a continuing obligation to update
74.22
information required by Form U-4 as changes occur;
74.23
(ii) An investment adviser representative and the investment adviser must file promptly
74.24
with the IARD any amendments to the representative's Form U-4; and
74.25
(iii) An amendment will be considered to be filed promptly if the amendment is filed
74.26
within 30 days of the event that requires the filing of the amendment.
74.27
(4) An application for initial or renewal of registration is not considered filed for purposes
74.28
of section 80A.58 until the required fee and all required submissions have been received
74.29
by the administrator.
74.30
(5) The application for withdrawal of registration as an investment adviser representative
74.31
pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
74
Article 2 Sec. 40.
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REVISOR
RSI
75.1
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
75.2
with the IARD.
75.3
EFFECTIVE DATE. This section is effective the day following final enactment.
75.4
Sec. 41. Minnesota Statutes 2022, section 80A.66, is amended to read:
75.5
80A.66 SECTION 411; POSTREGISTRATION REQUIREMENTS.
75.6
(a) Financial requirements. Subject to Section 15(h) of the Securities Exchange Act
75.7
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
75.8
(15 U.S.C. Section 80b-22), a rule adopted or order issued under this chapter may establish
75.9
minimum financial requirements for broker-dealers registered or required to be registered
75.10
under this chapter and investment advisers registered or required to be registered under this
75.11
chapter.
75.12
(b) Financial reports. Subject to Section 15(h) of the Securities Exchange Act of 1934
75.13
(15 U.S.C. Section 78o(h)) or Section 222(b) of the Investment Advisers Act of 1940 (15
75.14
U.S.C. Section 80b-22), a broker-dealer registered or required to be registered under this
75.15
chapter and an investment adviser registered or required to be registered under this chapter
75.16
shall file such financial reports as are required by a rule adopted or order issued under this
75.17
chapter. If the information contained in a record filed under this subsection is or becomes
75.18
inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting
75.19
amendment.
75.20
(c) Record keeping. Subject to Section 15(h) of the Securities Exchange Act of 1934
75.21
(15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940 (15
75.22
U.S.C. Section 80b-22):
75.23
(1) a broker-dealer registered or required to be registered under this chapter and an
75.24
investment adviser registered or required to be registered under this chapter shall make and
75.25
maintain the accounts, correspondence, memoranda, papers, books, and other records
75.26
required by rule adopted or order issued under this chapter;
75.27
(2) broker-dealer records required to be maintained under paragraph (1) may be
75.28
maintained in any form of data storage acceptable under Section 17(a) of the Securities
75.29
Exchange Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily accessible to the
75.30
administrator; and
75.31
(3) investment adviser records required to be maintained under paragraph (d)(1) may
75.32
be maintained in any form of data storage required by rule adopted or order issued under
75.33
this chapter.
75
Article 2 Sec. 41.
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3rd Engrossment
SF4097
REVISOR
RSI
76.1
(d) Records and reports of private funds.
76.2
(1) In general. An investment adviser to a private fund shall maintain such records of,
76.3
and file with the administrator such reports and amendments thereto, that an exempt reporting
76.4
adviser is required to file with the Securities and Exchange Commission pursuant to SEC
76.5
Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4.
76.6
(2) Treatment of records. The records and reports of any private fund to which an
76.7
investment adviser provides investment advice shall be deemed to be the records and reports
76.8
of the investment adviser.
76.9
(3) Required information. The records and reports required to be maintained by an
76.10
investment adviser, which are subject to inspection by a representative of the administrator
76.11
at any time, shall include for each private fund advised by the investment adviser, a
76.12
description of:
76.13
(A) the amount of assets under management;
76.14
(B) the use of leverage, including off-balance-sheet leverage, as to the assets under
76.15
management;
76.16
(C) counterparty credit risk exposure;
76.17
(D) trading and investment positions;
76.18
(E) valuation policies and practices of the fund;
76.19
(F) types of assets held;
76.20
(G) side arrangements or side letters, whereby certain investors in a fund obtain more
76.21
favorable rights or entitlements than other investors;
76.22
(H) trading practices; and
76.23
(I) such other information as the administrator determines is necessary and appropriate
76.24
in the public interest and for the protection of investors, which may include the establishment
76.25
of different reporting requirements for different classes of fund advisers, based on the type
76.26
or size of the private fund being advised.
76.27
(4) Filing of records. A rule or order under this chapter may require each investment
76.28
adviser to a private fund to file reports containing such information as the administrator
76.29
deems necessary and appropriate in the public interest and for the protection of investors.
76.30
(e) Audits or inspections. The records of a broker-dealer registered or required to be
76.31
registered under this chapter and of an investment adviser registered or required to be
76
Article 2 Sec. 41.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
77.1
registered under this chapter, including the records of a private fund described in paragraph
77.2
(d) and the records of investment advisers to private funds, are subject to such reasonable
77.3
periodic, special, or other audits or inspections by a representative of the administrator,
77.4
within or without this state, as the administrator considers necessary or appropriate in the
77.5
public interest and for the protection of investors. An audit or inspection may be made at
77.6
any time and without prior notice. The administrator may copy, and remove for audit or
77.7
inspection copies of, all records the administrator reasonably considers necessary or
77.8
appropriate to conduct the audit or inspection. The administrator may assess a reasonable
77.9
charge for conducting an audit or inspection under this subsection.
77.10
(f) Custody and discretionary authority bond or insurance. Subject to Section 15(h)
77.11
of the Securities Exchange Act of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the
77.12
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-22), a rule adopted or order issued
77.13
under this chapter may require a broker-dealer or investment adviser that has custody of or
77.14
discretionary authority over funds or securities of a customer or client to obtain insurance
77.15
or post a bond or other satisfactory form of security in an amount of at least $25,000, but
77.16
not to exceed $100,000. The administrator may determine the requirements of the insurance,
77.17
bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form
77.18
of security may not be required of a broker-dealer registered under this chapter whose net
77.19
capital exceeds, or of an investment adviser registered under this chapter whose minimum
77.20
financial requirements exceed, the amounts required by rule or order under this chapter.
77.21
The insurance, bond, or other satisfactory form of security must permit an action by a person
77.22
to enforce any liability on the insurance, bond, or other satisfactory form of security if
77.23
instituted within the time limitations in section 80A.76(j)(2).
77.24
(g) Requirements for custody. Subject to Section 15(h) of the Securities Exchange Act
77.25
of 1934 (15 U.S.C. Section 78o(h)) or Section 222 of the Investment Advisers Act of 1940
77.26
(15 U.S.C. Section 80b-22), an agent may not have custody of funds or securities of a
77.27
customer except under the supervision of a broker-dealer and an investment adviser
77.28
representative may not have custody of funds or securities of a client except under the
77.29
supervision of an investment adviser or a federal covered investment adviser. A rule adopted
77.30
or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
77.31
regarding custody of funds or securities of a customer and on an investment adviser regarding
77.32
custody of securities or funds of a client.
77.33
(h) Investment adviser brochure rule. With respect to an investment adviser registered
77.34
or required to be registered under this chapter, a rule adopted or order issued under this
77.35
chapter may require that information or other record be furnished or disseminated to clients
77
Article 2 Sec. 41.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
78.1
or prospective clients in this state as necessary or appropriate in the public interest and for
78.2
the protection of investors and advisory clients.
78.3
(i) Continuing education. A rule adopted or order issued under this chapter may require
78.4
an individual registered under section 80A.57 or 80A.58 to participate in a continuing
78.5
education program approved by the Securities and Exchange Commission and administered
78.6
by a self-regulatory organization.
78.7
EFFECTIVE DATE. This section is effective January 1, 2025.
78.8
Sec. 42. Minnesota Statutes 2022, section 80C.05, subdivision 3, is amended to read:
78.9
Subd. 3. Escrow or impoundment of fees and other funds by commissioner. If the
78.10
commissioner finds that the applicant has failed to demonstrate that adequate financial
78.11
arrangements have been made to fulfill obligations to provide real estate, improvements,
78.12
equipment, inventory, training or other items included in the offering, the commissioner
78.13
may by rule or order require the escrow or, impoundment, or deferral of franchise fees and
78.14
other funds paid by the franchisee or subfranchisor until no later than the time of opening
78.15
of the franchise business.
78.16
Sec. 43. Minnesota Statutes 2022, section 82B.021, subdivision 26, is amended to read:
78.17
Subd. 26. Standards of professional practice. "Standards of professional practice"
78.18
means the version of the uniform standards of professional appraisal practice of the
78.19
Appraisers Appraisal Standards Board of the Appraisal Foundation in effect as of January
78.20
1, 1991, or other version of these standards the commissioner may by order designate on
78.21
the date the appraiser signs the appraisal report.
78.22
Sec. 44. Minnesota Statutes 2022, section 82B.095, subdivision 3, is amended to read:
78.23
Subd. 3. Conformance to Appraisal Qualifications Board criteria. (a) The
78.24
requirements to obtain and maintain a trainee real property appraiser, licensed real property
78.25
appraiser, certified residential real property appraiser, or certified general real property
78.26
appraiser license are the education, examination, and experience requirements established
78.27
by the Appraiser Qualifications Board of the Appraisal Foundation and published in the
78.28
most recent version of the Real Property Appraiser Qualification Criteria.
78.29
(b) An applicant must complete the applicable education and experience requirements
78.30
before taking the required examination.
78.31
EFFECTIVE DATE. This section is effective January 1, 2026.
78
Article 2 Sec. 44.
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3rd Engrossment
SF4097
REVISOR
RSI
79.1
Sec. 45. Minnesota Statutes 2022, section 82B.19, subdivision 1, is amended to read:
79.2
Subdivision 1. License renewals. (a) The commissioner must determine that a licensed
79.3
real estate appraiser has met the continuing education requirements of this chapter before
79.4
the commissioner renews a license. This determination must be based on, for a resident
79.5
appraiser, course completion records uploaded electronically in a manner prescribed by the
79.6
commissioner and, for a nonresident appraiser, course completion records presented by
79.7
electronic transmission or uploaded electronically in a manner prescribed by the
79.8
commissioner.
79.9
The basic continuing education requirement for renewal of a license is the completion
79.10
by the applicant either as a student or as an instructor, during the immediately preceding
79.11
term of licensing, of at least 30 classroom hours of instruction in courses or seminars that
79.12
have received the approval of the commissioner. Classroom hour credit must not be accepted
79.13
for courses of less than two hours. As part of the continuing education requirements of this
79.14
section, the commissioner must require that all real estate appraisers successfully complete
79.15
the seven-hour national USPAP update course every two years. If the applicant's immediately
79.16
preceding term of licensing consisted of six or more months, but fewer than 24 months, the
79.17
applicant must provide evidence of completion of 15 hours of instruction during the license
79.18
period. The credit hours required under this section may be credited to a person for distance
79.19
education courses that meet Appraiser Qualifications Board criteria. An approved prelicense
79.20
education course may be taken for continuing education credit.
79.21
(b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete
79.22
the seven-hour national USPAP update course every two years.
79.23
EFFECTIVE DATE. This section is effective January 1, 2026.
79.24
Sec. 46. Minnesota Statutes 2022, section 115C.08, subdivision 2, is amended to read:
79.25
Subd. 2. Imposing fee. The board shall notify the commissioner of revenue if the
79.26
unencumbered balance of the fund falls below $4,000,000, and within 60 90 days after
79.27
receiving notice from the board, the commissioner of revenue shall impose the fee established
79.28
in subdivision 3 on the use of a tank for four calendar months, with payment to be submitted
79.29
with each monthly distributor tax return.
79.30
Sec. 47. RULEMAKING.
79.31
(a) The commissioner of commerce must adopt rules to conform with the changes made
79.32
to Minnesota Statutes, sections 80A.66 and 80C.05, subdivision 3, in this article with respect
79
Article 2 Sec. 47.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
80.1
to investment adviser registration continuing education and franchise fees deferral,
80.2
respectively. The commissioner of commerce may use the good cause exemption under
80.3
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend the rule under this
80.4
section, and Minnesota Statutes, section 14.386, does not apply except as provided under
80.5
Minnesota Statutes, section 14.388.
80.6
(b) The commissioner of commerce must amend Minnesota Rules, part 2675.2170, to
80.7
comply with the changes made and added in this article to Minnesota Statutes, sections
80.8
47.20, subdivision 2; 47.54, subdivisions 2 and 6; 48.24, subdivision 2; 58.02, subdivisions
80.9
15a, 18, and 21; 58.04, subdivisions 1 and 2; 58.05, subdivisions 1 and 3; 58.06, subdivisions
80.10
5, 6, and 7; 58.08, subdivisions 1a, 2, and 3; 58.10, subdivision 3; 58.115; 58.13, subdivision
80.11
1; and 58.141. The commissioner of commerce may use the good cause exemption under
80.12
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend the rule under this
80.13
section. Minnesota Statutes, section 14.386, does not apply, except as provided under
80.14
Minnesota Statutes, section 14.388.
80.15
Sec. 48. REPEALER.
80.16
Minnesota Statutes 2022, section 58.08, subdivision 3, is repealed.
80.17
ARTICLE 3
80.18
COMMERCIAL REGULATION AND CONSUMER PROTECTION
80.19
Section 1. Minnesota Statutes 2022, section 45.011, subdivision 1, is amended to read:
80.20
Subdivision 1. Scope. As used in chapters 45 to 80C, 80E to 83, 155A, 216C, 332, 332A,
80.21
332B, 345, and 359, and sections 81A.22 to 81A.37; 123A.21, subdivision 7, paragraph
80.22
(a), clause (23); 123A.25; 325D.30 to 325D.42; 326B.802 to 326B.885; 386.62 to 386.78;
80.23
471.617; and 471.982,; and 513.80, unless the context indicates otherwise, the terms defined
80.24
in this section have the meanings given them.
80.25
Sec. 2. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
80.26
subdivision to read:
80.27
Subd. 3a. Transaction hash. "Transaction hash" means a unique identifier made up of
80.28
a string of characters that act as a record of and provide proof that the transaction was
80.29
verified and added to the blockchain.
80
Article 3 Sec. 2.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
81.1
Sec. 3. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
81.2
subdivision to read:
81.3
Subd. 3b. New customer. "New customer" means a consumer transacting at a kiosk in
81.4
Minnesota who has been a customer with a virtual currency kiosk operator for less than 72
81.5
hours. After a 72-hour period has elapsed from the day of first signing up as a customer
81.6
with a virtual currency kiosk operator, the customer will be considered an existing customer
81.7
and no longer subject to the new customer transaction limit described in this act.
81.8
Sec. 4. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
81.9
subdivision to read:
81.10
Subd. 3c. Existing customer. "Existing customer" means a consumer transacting at a
81.11
kiosk in Minnesota who has been a customer with a virtual currency kiosk operator for more
81.12
than a 72-hour period. A new customer will automatically convert to an existing customer
81.13
after the 72-hour period of first becoming a new customer. An existing customer is subject
81.14
to the transaction limits described in this act.
81.15
Sec. 5. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
81.16
subdivision to read:
81.17
Subd. 6a. Virtual currency address. "Virtual currency address" means an alphanumeric
81.18
identifier representing a destination for a virtual currency transfer that is associated with a
81.19
virtual currency wallet.
81.20
Sec. 6. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
81.21
subdivision to read:
81.22
Subd. 10. Virtual currency kiosk. "Virtual currency kiosk" means an electronic terminal
81.23
acting as a mechanical agent of the virtual currency kiosk operator to enable the virtual
81.24
currency kiosk operator to facilitate the exchange of virtual currency for money, bank credit,
81.25
or other virtual currency, including but not limited to by (1) connecting directly to a separate
81.26
virtual currency exchanger that performs the actual virtual currency transmission, or (2)
81.27
drawing upon the virtual currency in the possession of the electronic terminal's operator.
81.28
Sec. 7. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
81.29
subdivision to read:
81.30
Subd. 11. Virtual currency kiosk operator. "Virtual currency kiosk operator" means
81.31
a licensee that operates a virtual currency kiosk within Minnesota.
81
Article 3 Sec. 7.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
82.1
Sec. 8. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
82.2
subdivision to read:
82.3
Subd. 12. Virtual currency kiosk transaction. "Virtual currency kiosk transaction"
82.4
means a transaction conducted or performed, in whole or in part, by electronic means via
82.5
a virtual currency kiosk. Virtual currency kiosk transaction also means a transaction made
82.6
at a virtual currency kiosk to purchase currency with fiat currency or to sell virtual currency
82.7
for fiat currency.
82.8
Sec. 9. Minnesota Statutes 2023 Supplement, section 53B.69, is amended by adding a
82.9
subdivision to read:
82.10
Subd. 13. Virtual currency wallet. "Virtual currency wallet" means a software
82.11
application or other mechanism providing a means to hold, store, or transfer virtual currency.
82.12
Sec. 10. [53B.75] VIRTUAL CURRENCY KIOSKS.
82.13
Subdivision 1. Disclosures on material risks. (a) Before entering into an initial virtual
82.14
currency transaction for, on behalf of, or with a person, the virtual currency kiosk operator
82.15
must disclose in a clear, conspicuous, and easily readable manner all material risks generally
82.16
associated with virtual currency. The disclosures must be displayed on the screen of the
82.17
virtual currency kiosk with the ability for a person to acknowledge the receipt of the
82.18
disclosures. The disclosures must include at least the following information:
82.19
(1) virtual currency is not legal tender, backed or insured by the government, and accounts
82.20
and value balances are not subject to Federal Deposit Insurance Corporation, National Credit
82.21
Union Administration, or Securities Investor Protection Corporation protections;
82.22
(2) some virtual currency transactions are deemed to be made when recorded on a public
82.23
ledger, which may not be the date or time when the person initiates the transaction;
82.24
(3) virtual currency's value may be derived from market participants' continued
82.25
willingness to exchange fiat currency for virtual currency, which may result in the permanent
82.26
and total loss of a particular virtual currency's value if the market for virtual currency
82.27
disappears;
82.28
(4) a person who accepts a virtual currency as payment today is not required to accept
82.29
and might not accept virtual currency in the future;
82.30
(5) the volatility and unpredictability of the price of virtual currency relative to fiat
82.31
currency may result in a significant loss over a short period;
82
Article 3 Sec. 10.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
83.1
(6) the nature of virtual currency means that any technological difficulties experienced
83.2
by virtual currency kiosk operators may prevent access to or use of a person's virtual
83.3
currency; and
83.4
(7) any bond maintained by the virtual currency kiosk operator for the benefit of a person
83.5
may not cover all losses a person incurs.
83.6
(b) The virtual currency kiosk operator must provide an additional disclosure, which
83.7
must be acknowledged by the person, written prominently and in bold type, and provided
83.8
separately from the disclosures above, stating: "WARNING: LOSSES DUE TO
83.9
FRAUDULENT OR ACCIDENTAL TRANSACTIONS ARE NOT RECOVERABLE
83.10
AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE. VIRTUAL
83.11
CURRENCY TRANSACTIONS MAY BE USED BY SCAMMERS IMPERSONATING
83.12
LOVED ONES, THREATENING JAIL TIME, AND INSISTING YOU WITHDRAW
83.13
MONEY FROM YOUR BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY."
83.14
Subd. 2. Disclosures. (a) A virtual currency kiosk operator must disclose all relevant
83.15
terms and conditions generally associated with the products, services, and activities of the
83.16
virtual currency kiosk operator and virtual currency. A virtual currency kiosk operator must
83.17
make the disclosures in a clear, conspicuous, and easily readable manner. The disclosures
83.18
under this subdivision must address at least the following:
83.19
(1) the person's liability for unauthorized virtual currency transactions;
83.20
(2) the person's right to:
83.21
(i) stop payment of a virtual currency transfer and the procedure to stop payment;
83.22
(ii) receive a receipt, trade ticket, or other evidence of a transaction at the time of the
83.23
transaction; and
83.24
(iii) prior notice of a change in the virtual currency kiosk operator's rules or policies;
83.25
(3) under what circumstances the virtual currency kiosk operator, without a court or
83.26
government order, discloses a person's account information to third parties; and
83.27
(4) other disclosures that are customarily provided in connection with opening a person's
83.28
account.
83.29
(b) Before each virtual currency transaction for, on behalf of, or with a person, a virtual
83.30
currency kiosk operator must disclose the transaction's terms and conditions in a clear,
83.31
conspicuous, and easily readable manner. The disclosures under this subdivision must
83.32
address at least the following:
83
Article 3 Sec. 10.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
84.1
(1) the amount of the transaction;
84.2
(2) any fees, expenses, and charges, including applicable exchange rates;
84.3
(3) the type and nature of the transaction;
84.4
(4) a warning that once completed, the transaction may not be reversed;
84.5
(5) a daily virtual currency transaction limit of no more than $2,000;
84.6
(6) the difference in the virtual currency's sale price compared to the current market
84.7
price; and
84.8
(7) other disclosures that are customarily given in connection with a virtual currency
84.9
transaction.
84.10
Subd. 3. Acknowledgment of disclosures. Before completing a transaction, a virtual
84.11
currency kiosk operator must ensure that each person who engages in a virtual currency
84.12
transaction using the virtual currency operator's kiosk acknowledges receipt of all disclosures
84.13
required under this section via confirmation of consent. Additionally, upon a transaction's
84.14
completion, the virtual currency kiosk operator must provide a person with a physical receipt,
84.15
or a virtual receipt sent to the person's email address or SMS number, containing the
84.16
following information:
84.17
(1) the virtual currency kiosk operator's name and contact information, including a
84.18
telephone number to answer questions and register complaints;
84.19
(2) the type, value, date, and precise time of the transaction, transaction hash, and each
84.20
virtual currency address;
84.21
(3) the fees charged;
84.22
(4) the exchange rate;
84.23
(5) a statement of the virtual currency kiosk operator's liability for nondelivery or delayed
84.24
delivery;
84.25
(6) a statement of the virtual currency kiosk operator's refund policy; and
84.26
(7) any additional information the commissioner of commerce may require.
84.27
Subd. 4. Refunds for new customers. A virtual currency kiosk operator must issue a
84.28
refund to a new customer for the full amount of all transactions made within the 72-hour
84.29
new customer time period, as described in section 53B.69, subdivision 3b, upon request of
84.30
the customer. In order to receive a refund under this subdivision, a customer must:
84.31
(1) have been fraudulently induced to engage in the virtual currency transactions; and
84
Article 3 Sec. 10.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
85.1
(2) within 14 days of the last transaction to occur during the 72-hour new customer time
85.2
period, contact the virtual currency kiosk operator and a government or law enforcement
85.3
agency to inform them of the fraudulent nature of the transaction.
85.4
Subd. 5. Transaction limits. (a) There is an established maximum daily transaction
85.5
limit of $2,000 for each new customer of a virtual currency kiosk.
85.6
(b) The maximum daily transaction limit of an existing customer shall be decided by
85.7
each virtual currency kiosk operator in compliance with federal law.
85.8
Sec. 11. Minnesota Statutes 2022, section 58B.02, subdivision 8, is amended to read:
85.9
Subd. 8. Student loan. "Student loan" means a government, commercial, or foundation
85.10
loan extension of credit for actual costs paid for tuition and reasonable education and living
85.11
expenses.
85.12
Sec. 12. Minnesota Statutes 2022, section 58B.02, is amended by adding a subdivision to
85.13
read:
85.14
Subd. 8a. Lender. "Lender" means an entity engaged in the business of securing, making,
85.15
or extending student loans. Lender does not include, to the extent that state regulation is
85.16
preempted by federal law:
85.17
(1) a bank, savings banks, savings and loan association, or credit union;
85.18
(2) a wholly owned subsidiary of a bank or credit union;
85.19
(3) an operating subsidiary where each owner is wholly owned by the same bank or
85.20
credit union;
85.21
(4) the United States government, through Title IV of the Higher Education Act of 1965,
85.22
as amended, and administered by the United States Department of Education;
85.23
(5) an agency, instrumentality, or political subdivision of Minnesota;
85.24
(6) a regulated lender organized under chapter 56, except that a regulated lender must
85.25
file the annual report required for lenders under section 58B.03, subdivision 11; or
85.26
(7) a person who is not in the business of making student loans and who makes no more
85.27
than three student loans, with the person's own funds, during any 12-month period.
85
Article 3 Sec. 12.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
86.1
Sec. 13. Minnesota Statutes 2022, section 58B.03, is amended by adding a subdivision to
86.2
read:
86.3
Subd. 10. Annual report. (a) Beginning March 15, 2025, a student loan lender that
86.4
secures, makes, or extends student loans in Minnesota must report to the commissioner on
86.5
the form the commissioner provides:
86.6
(1) a list of all schools attended by borrowers who received a student loan from the
86.7
student loan lender and resided within Minnesota at the time of the transaction and whose
86.8
debt is still outstanding, including student loans used to refinance an existing debt;
86.9
(2) the total outstanding dollar amount owed by borrowers residing in Minnesota who
86.10
received student loans from the student loan lender;
86.11
(3) the total number of student loans owed by borrowers residing in Minnesota who
86.12
received student loans from the student loan lender;
86.13
(4) the total outstanding dollar amount and number of student loans owed by borrowers
86.14
who reside in Minnesota, associated with each school identified under clause (1);
86.15
(5) the total dollar amount of student loans provided by the student loan lender to
86.16
borrowers who resided in Minnesota in the prior calendar year;
86.17
(6) the total outstanding dollar amount and number of student loans owed by borrowers
86.18
who resided in Minnesota, associated with each school identified under clause (1), that were
86.19
provided in the prior calendar year;
86.20
(7) the rate of default for borrowers residing in Minnesota who obtained student loans
86.21
from the student loan lender, if applicable;
86.22
(8) the rate of default for borrowers residing in Minnesota who obtained student loans
86.23
from the student loan lender associated with each school identified under clause (1), if
86.24
applicable;
86.25
(9) the range of initial interest rates for student loans provided by the student loan lender
86.26
to borrowers who resided in Minnesota in the prior calendar year;
86.27
(10) the total number of borrowers who received student loans identified under clause
86.28
(9), and the percentage of borrowers who received each rate identified under clause (9);
86.29
(11) the total dollar amount and number of student loans provided in the prior calendar
86.30
year by the student loan lender to borrowers who resided in Minnesota at the time of the
86.31
transaction and had a cosigner for the student loans;
86
Article 3 Sec. 13.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
87.1
(12) the total dollar amount and number of student loans provided by the student loan
87.2
lender to borrowers residing in Minnesota used to refinance a prior student loan or federal
87.3
student loan in the prior calendar year;
87.4
(13) the total dollar amount and number of student loans for which the student loan
87.5
lender had sued to collect from a borrower residing in Minnesota in the prior calendar year;
87.6
(14) a copy of any model promissory note, agreement, contract, or other instrument used
87.7
by the student loan lender in the previous year to substantiate that a borrower owes a new
87.8
debt to the student loan lender; and
87.9
(15) any other information considered necessary by the commissioner to assess the total
87.10
size and status of the student loan market and well-being of borrowers in Minnesota.
87.11
(b) In addition to annual reports, the commissioner may require additional regular or
87.12
special reports as the commissioner deems necessary to properly supervise student loan
87.13
lenders under this chapter.
87.14
(c) The commissioner of commerce must share data collected under this subdivision
87.15
with the commissioner of higher education.
87.16
Sec. 14. Minnesota Statutes 2022, section 58B.03, is amended by adding a subdivision to
87.17
read:
87.18
Subd. 11. Annual report from student loan servicers. (a) Beginning March 15, 2025,
87.19
a student loan servicer that services student loans in Minnesota must report to the
87.20
commissioner on the form the commissioner provides. The report must include:
87.21
(1) a list of any outstanding student loans owed by borrowers who reside in Minnesota
87.22
that are serviced by the student loan servicer;
87.23
(2) the total outstanding dollar amount and number of student loans that are serviced by
87.24
the student loan servicer and owed by borrowers who reside in Minnesota;
87.25
(3) the total dollar amount and number of student loans owed by borrowers who resided
87.26
in Minnesota that were serviced by the student loan servicer in the prior calendar year;
87.27
(4) the rate of default for student loans owed by borrowers who reside in Minnesota that
87.28
are serviced by the student loan servicer, if applicable;
87.29
(5) the range of interest rates for student loans serviced by the student loan servicers to
87.30
borrowers who resided in Minnesota in the prior calendar year;
87
Article 3 Sec. 14.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
88.1
(6) the total outstanding dollar amount and number of student loans that were serviced
88.2
by the student loan servicer and owed by borrowers residing in Minnesota to refinance a
88.3
prior student loan or federal student loan; and
88.4
(7) any other information considered necessary by the commissioner to assess the total
88.5
size and status of the student loan market and well-being of borrowers in Minnesota.
88.6
(b) In addition to annual reports, the commissioner may require additional regular or
88.7
special reports as the commissioner deems necessary to properly supervise student loan
88.8
servicers under this chapter.
88.9
(c) The commissioner of commerce must share data collected under this subdivision
88.10
with the commissioner of higher education.
88.11
Sec. 15. Minnesota Statutes 2022, section 58B.06, subdivision 4, is amended to read:
88.12
Subd. 4. Transfer of student loan. (a) If a borrower's student loan servicer changes
88.13
pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer
88.14
must:
88.15
(1) require the new student loan servicer to honor all benefits that were made available,
88.16
or which may have become available, to a borrower from the original student loan servicer
88.17
or is authorized under the student loan contract, including any benefits for which the student
88.18
loan borrower has not yet qualified unless that benefit is no longer available under the federal
88.19
or state laws and regulations; and
88.20
(2) transfer to the new student loan servicer all information regarding the borrower, the
88.21
account of the borrower, and the borrower's student loan, including but not limited to the
88.22
repayment status of the student loan and the benefits described in clause (1).
88.23
(b) The student loan servicer must complete the transfer under paragraph (a), clause (2),
88.24
less than 45 days from the date of the sale, assignment, or transfer of the servicing.
88.25
(c) A sale, assignment, or transfer of the servicing must be completed no less than seven
88.26
days from the date the next payment is due on the student loan.
88.27
(d) A new student loan servicer must adopt policies and procedures to verify that the
88.28
original student loan servicer has met the requirements of paragraph (a).
88
Article 3 Sec. 15.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
89.1
Sec. 16. Minnesota Statutes 2022, section 58B.06, subdivision 5, is amended to read:
89.2
Subd. 5. Income-driven repayment. (a) A student loan servicer must evaluate a borrower
89.3
for eligibility for an income-driven repayment program before placing a borrower in
89.4
forbearance or default.
89.5
(b) A student loan servicer must provide the following information on the student loan
89.6
servicer's website:
89.7
(1) a description of any income-driven repayment programs available under the student
89.8
loan contract or federal or state laws and regulations; and
89.9
(2) information on the policies and procedures the student loan servicer implements to
89.10
facilitate the evaluation of student loan income-driven repayment program requests, including
89.11
accurate information regarding any options that may be available to the borrower through
89.12
the promissory note or that may have been marketed to the borrower through marketing
89.13
materials.
89.14
Sec. 17. Minnesota Statutes 2022, section 58B.07, subdivision 1, is amended to read:
89.15
Subdivision 1. Misleading borrowers. A student loan servicer must not directly or
89.16
indirectly employ any scheme, device, or artifice to attempt to defraud or mislead a borrower.
89.17
Sec. 18. Minnesota Statutes 2022, section 58B.07, subdivision 3, is amended to read:
89.18
Subd. 3. Misapplication of payments. A student loan servicer must not knowingly or
89.19
negligently misapply student loan payments to the outstanding balance of a student loan.
89.20
Sec. 19. Minnesota Statutes 2022, section 58B.07, subdivision 9, is amended to read:
89.21
Subd. 9. Incorrect information regarding student loan forgiveness loans. (a) A
89.22
student loan servicer must not misrepresent the availability of student loan forgiveness for
89.23
which the servicer has reason to know the borrower is eligible. This includes but is not
89.24
limited to student loan forgiveness programs specific to military borrowers, borrowers
89.25
working in public service, or borrowers with disabilities.
89.26
(b) A student loan servicer must not provide incorrect information related to forbearance.
89.27
If a student loan servicer suggests placing a borrower in forbearance in lieu of a repayment
89.28
program that would result in savings to the borrower and the borrower relies on this
89.29
information, the student loan servicer shall be subject to the penalties provided under section
89.30
58B.09.
89
Article 3 Sec. 19.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
90.1
Sec. 20. Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
90.2
read:
90.3
Subd. 11. Property. A student loan servicer must not obtain property by fraud or
90.4
misrepresentation.
90.5
Sec. 21. Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
90.6
read:
90.7
Subd. 12. Customer service. A student loan servicer must not allow a borrower to
90.8
remain on hold during an individual call for more than two hours unless the student loan
90.9
servicer returns the borrower's phone call within 24 hours of the two hours expiring. A
90.10
student loan servicer must not allow a call on hold to automatically lapse or end upon
90.11
reaching a duration of two hours to satisfy this requirement.
90.12
Sec. 22. Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
90.13
read:
90.14
Subd. 13. Abusive acts or practices. A student loan servicer must not engage in abusive
90.15
acts or practices when servicing a student loan in this state. An act or practice is abusive in
90.16
connection with the servicing of a student loan if that act or practice:
90.17
(1) materially interferes with the ability of a borrower to understand a term or condition
90.18
of a student loan; or
90.19
(2) takes unreasonable advantage of any of the following:
90.20
(i) a lack of understanding on the part of a borrower of the material risks, costs, or
90.21
conditions of the student loan;
90.22
(ii) the inability of a borrower to protect the interests of the borrower when selecting or
90.23
using a student loan or feature, term, or condition of a student loan; or
90.24
(iii) the reasonable reliance by the borrower on a student loan servicer to act in the
90.25
interests of the borrower.
90.26
Sec. 23. Minnesota Statutes 2022, section 58B.07, is amended by adding a subdivision to
90.27
read:
90.28
Subd. 14. Violations. A violation of this section is an unlawful practice under section
90.29
325D.44.
90
Article 3 Sec. 23.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
91.1
Sec. 24. Minnesota Statutes 2022, section 58B.09, is amended by adding a subdivision to
91.2
read:
91.3
Subd. 4. Private right of action. (a) A borrower who suffers damage as a result of the
91.4
failure of a student loan servicer to comply with this chapter may bring an action on a
91.5
borrower's own behalf and on behalf of a similarly situated class of persons against that
91.6
student loan servicer to recover or obtain:
91.7
(1) actual damages, except that the total award of damages must be at least $500 per
91.8
plaintiff, per violation;
91.9
(2) an order enjoining the methods, acts, or practices;
91.10
(3) restitution of property;
91.11
(4) punitive damages;
91.12
(5) reasonable attorney fees; and
91.13
(6) any other relief that the court deems proper.
91.14
(b) In addition to any other remedies provided by this subdivision or otherwise provided
91.15
by law, if a student loan servicer is shown, by a preponderance of the evidence, to have
91.16
engaged in conduct that substantially interferes with a borrower's right to an alternative
91.17
payment arrangement; loan forgiveness, cancellation, or discharge; or any other financial
91.18
benefit established under the terms of a borrower's promissory note or under the Higher
91.19
Education Act of 1965, United States Code, title 20, section 1070a, et seq., a borrower is
91.20
entitled to damages of at least $1,500 per plaintiff, per violation.
91.21
(c) At least 45 days before bringing an action for damages or injunctive relief under this
91.22
chapter, a borrower must:
91.23
(1) provide written notice to the student loan servicer alleged to have violated this chapter
91.24
regarding the nature of the alleged violations; and
91.25
(2) demand that the student loan servicer correct and remedy the method, act, or practice
91.26
identified in the notice under clause (1).
91.27
(d) The notice required by this subdivision must be sent by certified or registered mail,
91.28
return receipt requested, to the student loan servicer's address on file with the Department
91.29
of Commerce or to the student loan servicer's principal place of business in Minnesota.
91.30
(e) An action for damages or injunctive relief brought by a borrower only on the
91.31
individual borrower's behalf must not be maintained under paragraph (a) upon a showing
91.32
by a student loan servicer that an appropriate correction and remedy is given, or is agreed
91
Article 3 Sec. 24.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
92.1
to be given within a reasonable time, to the borrower within 30 days after the notice is
92.2
received.
92.3
(f) An action for damages brought by a borrower on both the borrower's behalf and on
92.4
behalf of a similarly situated class of persons must not be maintained under paragraph (a)
92.5
upon a showing by a student loan servicer alleged to have employed or committed a method,
92.6
act, or practice declared unlawful if:
92.7
(1) all borrowers similarly situated have been identified or a reasonable effort to identify
92.8
other borrowers has been made;
92.9
(2) all borrowers identified have been notified that, upon the borrower's request, the
92.10
student loan servicer must make the appropriate correction and remedy;
92.11
(3) the correction and remedy requested by the borrower has been given or is given
92.12
within a reasonable amount of time; and
92.13
(4) the student loan servicer has ceased from engaging, or if immediate cessation is
92.14
impossible or unreasonably expensive under the circumstances, the student loan servicer
92.15
ceases to engage within a reasonable amount of time, in the method, act, or practice.
92.16
(g) An attempt to comply with a demand described in paragraph (c) by a student loan
92.17
servicer that receives the demand is construed as an offer to compromise and is inadmissible
92.18
as evidence under Minnesota Rules of Evidence, rule 408. An attempt to comply with a
92.19
demand is not an admission of engaging in an act or practice declared unlawful by paragraph
92.20
(a). Evidence of compliance or attempts to comply with this section may be introduced by
92.21
a defendant to establish good faith or to show compliance with paragraph (a).
92.22
(h) An award of damages must not be given in an action based on a method, act, or
92.23
practice in violation of paragraph (a) if the student loan servicer alleged to have employed
92.24
or committed that method, act, or practice:
92.25
(1) proves by a preponderance of the evidence that the violation was not intentional and
92.26
resulted from a bona fide error, notwithstanding the use of reasonable procedures adopted
92.27
to avoid that error; and
92.28
(2) makes an appropriate correction, repair, replacement, or other remedy under
92.29
paragraphs (e) and (f).
92.30
Sec. 25. [62J.805] DEFINITIONS.
92.31
Subdivision 1. Application. For purposes of sections 62J.805 to 62J.808, the following
92.32
terms have the meanings given.
92
Article 3 Sec. 25.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
93.1
Subd. 2. Billing error. "Billing error" means an error in a bill from a health care provider
93.2
to a patient for health treatment or services that affects the amount owed by the patient
93.3
according to that bill. Billing error includes but is not limited to (1) miscoding a health
93.4
treatment or service, (2) an error in determining whether a health treatment or service is
93.5
covered under the patient's health plan, or (3) an error in determining the cost-sharing owed
93.6
by the patient.
93.7
Subd. 3. Group practice. "Group practice" has the meaning given to health care provider
93.8
group practice in section 145D.01, subdivision 1.
93.9
Subd. 4. Health care provider. "Health care provider" means:
93.10
(1) a health professional who is licensed or registered by the state to provide health
93.11
treatment and services within the professional's scope of practice and in accordance with
93.12
state law;
93.13
(2) a group practice; or
93.14
(3) a hospital.
93.15
Subd. 5. Health plan. "Health plan" has the meaning given in section 62A.011,
93.16
subdivision 3.
93.17
Subd. 6. Hospital. "Hospital" means a health care facility licensed as a hospital under
93.18
sections 144.50 to 144.56.
93.19
Subd. 7. Medically necessary. "Medically necessary" means:
93.20
(1) safe and effective;
93.21
(2) not experimental or investigational, except as provided in Code of Federal Regulations,
93.22
title 42, section 411.15(o);
93.23
(3) furnished in accordance with acceptable medical standards of medical practice to
93.24
diagnose or treat the patient's condition, or to improve the function of a malformed body
93.25
member;
93.26
(4) furnished in a setting appropriate to the patient's medical need and condition;
93.27
(5) ordered and furnished by qualified personnel;
93.28
(6) meets, but does not exceed, the patient's medical need; and
93.29
(7) is at least as beneficial as an existing and available medically appropriate alternative.
93.30
Subd. 8. Payment. "Payment" includes co-payments and coinsurance and deductible
93.31
payments made by a patient.
93
Article 3 Sec. 25.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
94.1
EFFECTIVE DATE. This section is effective October 1, 2024.
94.2
Sec. 26. [62J.806] POLICY FOR COLLECTION OF MEDICAL DEBT.
94.3
Subdivision 1. Requirement. A health care provider must make available to the public
94.4
the health care provider's policy for collecting medical debt from patients. The policy must
94.5
be made available by:
94.6
(1) clearly posting the policy on the health care provider's website or, for health
94.7
professionals, on the website of the health clinic, group practice, or hospital at which the
94.8
health professional is employed or under contract; and
94.9
(2) providing a copy of the policy to any individual who requests the policy.
94.10
Subd. 2. Content. A policy made available under this section must at least specify the
94.11
procedures followed by the health care provider to:
94.12
(1) communicate with patients about the medical debt owed and collecting medical debt;
94.13
(2) refer medical debt to a collection agency or law firm for collection; and
94.14
(3) identify medical debt as uncollectible or satisfied, and ending collection activities.
94.15
EFFECTIVE DATE. This section is effective October 1, 2024.
94.16
Sec. 27. [62J.807] DENIAL OF HEALTH TREATMENT OR SERVICES DUE TO
94.17
OUTSTANDING MEDICAL DEBT.
94.18
(a) A health care provider must not deny medically necessary health treatment or services
94.19
to a patient or any member of the patient's family or household because of current or previous
94.20
outstanding medical debt owed by the patient or any member of the patient's family or
94.21
household to the health care provider, regardless of whether the health treatment or service
94.22
may be available from another health care provider.
94.23
(b) As a condition of providing medically necessary health treatment or services in the
94.24
circumstances described in paragraph (a), a health care provider may require the patient to
94.25
enroll in a payment plan for the outstanding medical debt owed to the health care provider.
94.26
The payment plan must be reasonable and must take into account any information disclosed
94.27
by the patient regarding the patient's ability to pay. Before entering into the payment plan,
94.28
a health care provider must notify the patient that if the patient is unable to make all or part
94.29
of the agreed-upon installment payments, the patient must communicate the patient's situation
94.30
to the health care provider and must pay an amount the patient can afford.
94.31
EFFECTIVE DATE. This section is effective October 1, 2024.
94
Article 3 Sec. 27.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
95.1
Sec. 28. [62J.808] BILLING ERRORS; HEALTH TREATMENT OR SERVICES.
95.2
Subdivision 1. Billing and acceptance of payment. (a) If a health care provider or
95.3
health plan company determines or receives notice from a patient or other person that a bill
95.4
from the health care provider to a patient for health treatment or services may contain one
95.5
or more billing errors, the health care provider or health plan company must review the bill
95.6
and correct any billing errors found. While the review is being conducted, the health care
95.7
provider must not bill the patient for any health treatment or service subject to review for
95.8
potential billing errors. A health care provider may bill the patient for the health treatment
95.9
and services that were reviewed for potential billing errors under this subdivision only after
95.10
the review is complete, any billing errors are corrected, and a notice of completed review
95.11
required under subdivision 3 is transmitted to the patient.
95.12
(b) If, after completing the review under paragraph (a) and correcting any billing errors,
95.13
a health care provider or health plan company determines the patient overpaid the health
95.14
care provider under the bill, the health care provider must, within 30 days after completing
95.15
the review, refund to the patient the amount the patient overpaid under the bill.
95.16
Subd. 2. Notice to patient of potential billing error. (a) If a health care provider or
95.17
health plan company determines or receives notice from a patient or other person that a bill
95.18
from the health care provider to a patient for health treatment or services may contain one
95.19
or more billing errors, the health care provider or health plan company must notify the
95.20
patient:
95.21
(1) of the potential billing error;
95.22
(2) that the health care provider or health plan company must review the bill and correct
95.23
any billing errors found; and
95.24
(3) that while the review is being conducted, the health care provider must not bill the
95.25
patient for any health treatment or service subject to review for potential billing errors.
95.26
(b) The notice required under this subdivision must be transmitted to the patient within
95.27
30 days after the date the health care provider or health plan company determines or receives
95.28
notice that the patient's bill may contain one or more billing errors.
95.29
Subd. 3. Notice to patient of completed review. When a health care provider or health
95.30
plan company completes a review of a bill for potential billing errors, the health care provider
95.31
or health plan company must (1) notify the patient that the review is complete, (2) explain
95.32
in detail how any identified billing errors were corrected or explain in detail why the health
95.33
care provider or health plan company did not modify the bill as requested by the patient or
95
Article 3 Sec. 28.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
96.1
other person, and (3) include applicable coding guidelines, references to health records, and
96.2
other relevant information. This notice must be transmitted to the patient within 30 days
96.3
after the date the health care provider or health plan company completes the review.
96.4
EFFECTIVE DATE. This section is effective October 1, 2024.
96.5
Sec. 29. Minnesota Statutes 2023 Supplement, section 144.587, subdivision 4, is amended
96.6
to read:
96.7
Subd. 4. Prohibited actions. (a) A hospital must not initiate one or more of the following
96.8
actions until the hospital determines that the patient is ineligible for charity care or denies
96.9
an application for charity care:
96.10
(1) offering to enroll or enrolling the patient in a payment plan;
96.11
(2) changing the terms of a patient's payment plan;
96.12
(3) offering the patient a loan or line of credit, application materials for a loan or line of
96.13
credit, or assistance with applying for a loan or line of credit, for the payment of medical
96.14
debt;
96.15
(4) referring a patient's debt for collections, including in-house collections, third-party
96.16
collections, revenue recapture, or any other process for the collection of debt; or
96.17
(5) denying health care services to the patient or any member of the patient's household
96.18
because of outstanding medical debt, regardless of whether the services are deemed necessary
96.19
or may be available from another provider; or
96.20
(6) (5) accepting a credit card payment of over $500 for the medical debt owed to the
96.21
hospital.
96.22
(b) A violation of section 62J.807 is a violation of this subdivision.
96.23
EFFECTIVE DATE. This section is effective October 1, 2024.
96.24
Sec. 30. Minnesota Statutes 2022, section 176.175, subdivision 2, is amended to read:
96.25
Subd. 2. Nonassignability. No claim for compensation or settlement of a claim for
96.26
compensation owned by an injured employee or dependents is assignable. Except as otherwise
96.27
provided in this chapter, any claim for compensation owned by an injured employee or
96.28
dependents is exempt from seizure or sale for the payment of any debt or liability, up to a
96.29
total amount of $1,000,000 per claim and subsequent award.
96.30
EFFECTIVE DATE. This section is effective October 1, 2024.
96
Article 3 Sec. 30.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
97.1
Sec. 31. Minnesota Statutes 2023 Supplement, section 239.791, subdivision 8, is amended
97.2
to read:
97.3
Subd. 8. Disclosure; reporting. (a) A refinery or terminal, shall provide, at the time
97.4
gasoline is sold or transferred from the refinery or terminal, a bill of lading or shipping
97.5
manifest to the person who receives the gasoline. For oxygenated gasoline, the bill of lading
97.6
or shipping manifest must include the identity and the volume percentage or gallons of
97.7
oxygenate included in the gasoline, and it must state: "This fuel contains an oxygenate. Do
97.8
not blend this fuel with ethanol or with any other oxygenate." For nonoxygenated gasoline
97.9
not exempt under subdivisions 10 to 14, 16, and 17, the bill or manifest must state: "This
97.10
fuel is not oxygenated. It must not be sold at retail in Minnesota." This subdivision does
97.11
not apply to sales or transfers of gasoline between refineries, between terminals, or between
97.12
a refinery and a terminal.
97.13
(b) A delivery ticket required under section 239.092 for biofuel blended with gasoline
97.14
must state the volume percentage of biofuel blended into gasoline delivered through a meter
97.15
into a storage tank used for dispensing by persons not exempt under subdivisions 10 to 14
97.16
and, 16, and 17.
97.17
(c) On or before the 23rd day of each month, a person responsible for the product must
97.18
report to the department, in the form prescribed by the commissioner, the gross number of
97.19
gallons of intermediate blends sold at retail by the person during the preceding calendar
97.20
month. The report must identify the number of gallons by blend type. For purposes of this
97.21
subdivision, "intermediate blends" means blends of gasoline and biofuel in which the biofuel
97.22
content, exclusive of denaturants and other permitted components, is greater than ten percent
97.23
and no more than 50 percent by volume. This paragraph only applies to a person who is
97.24
responsible for selling intermediate blends at retail at more than ten locations. A person
97.25
responsible for the product at fewer than ten locations is not precluded from reporting the
97.26
gross number of intermediate blends if a report is available.
97.27
(d) All reports provided pursuant to paragraph (c) are nonpublic data, as defined in
97.28
section 13.02, subdivision 9.
97.29
Sec. 32. Minnesota Statutes 2022, section 239.791, is amended by adding a subdivision
97.30
to read:
97.31
Subd. 17. Bulk delivery of premium grade gasoline; exemption. (a) A person
97.32
responsible for the product may offer for sale, sell, or deliver a bulk delivery of unleaded
97.33
premium grade gasoline, as defined in section 239.751, subdivision 4, that is not oxygenated
97.34
in accordance with subdivision 1 if the conditions in paragraphs (b) to (d) are met.
97
Article 3 Sec. 32.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
98.1
(b) Nonoxygenated gas is only for use in vehicles that qualify for an exemption under
98.2
subdivision 12, paragraph (a).
98.3
(c) No more than one bulk fuel storage tank on the premises may be used for storage of
98.4
the nonoxygenated gasoline.
98.5
(d) The bulk fuel delivery is 500 gallons or less.
98.6
Sec. 33. Minnesota Statutes 2022, section 270C.63, subdivision 8, is amended to read:
98.7
Subd. 8. Exempt property. The lien imposed on personal property by this section, even
98.8
though properly filed, is not enforceable: (1) against a purchaser with respect to tangible
98.9
personal property purchased at retail in the ordinary course of the seller's trade or business,
98.10
unless at the time of purchase the purchaser intends the purchase to or knows the purchase
98.11
will hinder, evade, or defeat the collection of a tax; or (2) against the personal property
98.12
listed as exempt in sections (i) Minnesota Statutes 2022, section 550.37, and (ii) sections
98.13
550.38, and 550.39.
98.14
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
98.15
of action commenced on or after that date.
98.16
Sec. 34. Minnesota Statutes 2022, section 270C.65, subdivision 1, is amended to read:
98.17
Subdivision 1. Certification by commissioner. The commissioner of revenue is
98.18
authorized to certify to the commissioner of management and budget, or to any state agency
98.19
described in subdivision 3 which disburses its own funds, that a taxpayer has an uncontested
98.20
delinquent tax liability owed to the commissioner of revenue. The certification must be
98.21
made within ten years after the date of assessment of the tax. Once certification is made,
98.22
the commissioner of management and budget or the state agency shall apply to the delinquent
98.23
tax liability funds sufficient to satisfy the unpaid tax liability from funds appropriated for
98.24
payment of an obligation of the state or any of its agencies that are due and owing the
98.25
taxpayer. No setoff shall be made against any funds exempt under Minnesota Statutes 2022,
98.26
section 550.37, or those funds owed an individual taxpayer who receives assistance under
98.27
the provisions of chapter 256.
98.28
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
98.29
of action commenced on or after that date.
98.30
Sec. 35. Minnesota Statutes 2022, section 270C.67, subdivision 1a, is amended to read:
98.31
Subd. 1a. Exempt property. A levy under this section is not enforceable against:
98
Article 3 Sec. 35.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
99.1
(1) a purchaser with respect to tangible personal property purchased at retail in the
99.2
ordinary course of the seller's trade or business, unless at the time of purchase the purchaser
99.3
intends the purchase to or knows the purchase will hinder, evade, or defeat the collection
99.4
of a tax; or
99.5
(2) the personal property listed as exempt in sections (i) Minnesota Statutes 2022, section
99.6
550.37, and (ii) sections 550.38, and 550.39.
99.7
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
99.8
of action commenced on or after that date.
99.9
Sec. 36. Minnesota Statutes 2022, section 270C.67, subdivision 11, is amended to read:
99.10
Subd. 11. Levy and sale by sheriff. If any tax payable to the commissioner or to the
99.11
department is not paid as provided in subdivision 3, the commissioner may, within the time
99.12
periods provided in subdivision 1 for collection of taxes, delegate the authority granted by
99.13
subdivision 1, by means of issuing a warrant to the sheriff of any county of the state
99.14
commanding the sheriff, as agent for the commissioner, to levy upon and sell the real and
99.15
personal property of the person liable for the payment or collection of the tax and to levy
99.16
upon the rights to property of that person within the county, or to levy upon and seize any
99.17
property within the county on which there is a lien provided in section 270C.63, and to
99.18
return the warrant to the commissioner and pay to the commissioner the money collected
99.19
by virtue thereof by a time to be therein specified not less than 60 days from the date of the
99.20
warrant. The sheriff shall proceed thereunder to levy upon and seize any property of the
99.21
person and to levy upon the rights to property of the person within the county (except the
99.22
person's homestead or that property which is exempt from execution pursuant to Minnesota
99.23
Statutes 2022, section 550.37), or to levy upon and seize any property within the county on
99.24
which there is a lien provided in section 270C.63. For purposes of the preceding sentence,
99.25
"tax" includes any penalty, interest, and costs, properly payable. The sheriff shall then sell
99.26
so much of the property levied upon as is required to satisfy the taxes, interest, and penalties,
99.27
together with the sheriff's costs; but the sales, and the time and manner of redemption
99.28
therefrom, shall, to the extent not provided in sections 270C.7101 to 270C.7109, be governed
99.29
by Minnesota Statutes 2022, chapter 550. The proceeds of the sales, less the sheriff's costs,
99.30
shall be turned over to the commissioner, who shall then apply the proceeds as provided in
99.31
section 270C.7108.
99.32
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
99.33
of action commenced on or after that date.
99
Article 3 Sec. 36.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
100.1
Sec. 37. Minnesota Statutes 2022, section 270C.69, subdivision 1, is amended to read:
100.2
Subdivision 1. Notice and procedures. (a) The commissioner may, within five years
100.3
after the date of assessment of the tax, or if a lien has been filed under section 270C.63,
100.4
within the statutory period for enforcement of the lien, give notice to any employer deriving
100.5
income which has a taxable situs in this state regardless of whether the income is exempt
100.6
from taxation, that an employee of that employer is delinquent in a certain amount with
100.7
respect to any taxes, including penalties, interest, and costs. The commissioner can proceed
100.8
under this section only if the tax is uncontested or if the time for appeal of the tax has
100.9
expired. The commissioner shall not proceed under this section until the expiration of 30
100.10
days after mailing to the taxpayer, at the taxpayer's last known address, a written notice of
100.11
(1) the amount of taxes, interest, and penalties due from the taxpayer and demand for their
100.12
payment, and (2) the commissioner's intention to require additional withholding by the
100.13
taxpayer's employer pursuant to this section. The effect of the notice shall expire one year
100.14
after it has been mailed to the taxpayer provided that the notice may be renewed by mailing
100.15
a new notice which is in accordance with this section. The renewed notice shall have the
100.16
effect of reinstating the priority of the original claim. The notice to the taxpayer shall be in
100.17
substantially the same form as that provided in Minnesota Statutes 2022, section 571.72.
100.18
The notice shall further inform the taxpayer of the wage exemptions contained in Minnesota
100.19
Statutes 2022, section 550.37, subdivision 14. If no statement of exemption is received by
100.20
the commissioner within 30 days from the mailing of the notice, the commissioner may
100.21
proceed under this section. The notice to the taxpayer's employer may be served by mail or
100.22
by delivery by an agent of the department and shall be in substantially the same form as
100.23
provided in Minnesota Statutes 2022, section 571.75. Upon receipt of notice, the employer
100.24
shall withhold from compensation due or to become due to the employee, the total amount
100.25
shown by the notice, subject to the provisions of Minnesota Statutes 2022, section 571.922.
100.26
The employer shall continue to withhold each pay period until the notice is released by the
100.27
commissioner under section 270C.7109. Upon receipt of notice by the employer, the claim
100.28
of the state of Minnesota shall have priority over any subsequent garnishments or wage
100.29
assignments. The commissioner may arrange between the employer and the employee for
100.30
withholding a portion of the total amount due the employee each pay period, until the total
100.31
amount shown by the notice plus accrued interest has been withheld.
100.32
(b) The "compensation due" any employee is defined in accordance with the provisions
100.33
of Minnesota Statutes 2022, section 571.921. The maximum withholding allowed under
100.34
this section for any one pay period shall be decreased by any amounts payable pursuant to
100.35
a garnishment action with respect to which the employer was served prior to being served
100
Article 3 Sec. 37.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
101.1
with the notice of delinquency and any amounts covered by any irrevocable and previously
101.2
effective assignment of wages; the employer shall give notice to the commissioner of the
101.3
amounts and the facts relating to such assignments within ten days after the service of the
101.4
notice of delinquency on the form provided by the commissioner as noted in this section.
101.5
(c) Within ten days after the expiration of such pay period, the employer shall remit to
101.6
the commissioner, in the manner prescribed by the commissioner, the amount withheld
101.7
during each pay period under this section. The employer must file all wage levy disclosure
101.8
forms and remit all wage levy payments by electronic means.
101.9
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
101.10
of action commenced on or after that date.
101.11
Sec. 38. Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 1b, is amended
101.12
to read:
101.13
Subd. 1b. Purchase or acquisition record required. (a) Every scrap metal dealer,
101.14
including an agent, employee, or representative of the dealer, shall create a permanent record
101.15
written in English, using an electronic record program at the time of each purchase or
101.16
acquisition of scrap metal or a motor vehicle. The record must include:
101.17
(1) a complete and accurate account or description, including the weight if customarily
101.18
purchased by weight, of the scrap metal or motor vehicle purchased or acquired;
101.19
(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased
101.20
or acquired and a unique transaction identifier;
101.21
(3) a photocopy or electronic scan of the seller's proof of identification including the
101.22
identification number;
101.23
(4) the amount paid and the number of the check or electronic transfer used to purchase
101.24
or acquire the scrap metal or motor vehicle;
101.25
(5) the license plate number and description of the vehicle used by the person when
101.26
delivering the scrap metal or motor vehicle, including the vehicle make and model, and any
101.27
identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;
101.28
(6) a statement signed by the seller, under penalty of perjury as provided in section
101.29
609.48, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens
101.30
or encumbrances and the seller has the right to sell it;
101.31
(7) a copy of the receipt, which must include at least the following information: the name
101.32
and address of the dealer, the date and time the scrap metal or motor vehicle was received
101
Article 3 Sec. 38.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
102.1
by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount
102.2
paid for the scrap metal or motor vehicle; and
102.3
(8) in order to purchase or acquire a detached catalytic converter, the vehicle identification
102.4
number of the car it was removed from or, as an alternative, any numbers, bar codes, stickers,
102.5
or other unique markings, whether resulting from the pilot project created under subdivision
102.6
2b or some other source. The alternative number must be under a numbering system that
102.7
can be immediately linked to the vehicle identification number by law enforcement; and
102.8
(9) (8) the identity or identifier of the employee completing the transaction.
102.9
(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall
102.10
at all reasonable times be open to the inspection of any properly identified law enforcement
102.11
officer.
102.12
(c) Except for the purchase or acquisition of detached catalytic converters or motor
102.13
vehicles, no record is required for property purchased or acquired from merchants,
102.14
manufacturers, salvage pools, insurance companies, rental car companies, financial
102.15
institutions, charities, dealers licensed under section 168.27, or wholesale dealers, having
102.16
an established place of business, or of any goods purchased or acquired at open sale from
102.17
any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
102.18
and kept by the person, which must be shown upon demand to any properly identified law
102.19
enforcement officer.
102.20
(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
102.21
(7), to the seller in every transaction.
102.22
(e) The commissioner of public safety and law enforcement agencies in the jurisdiction
102.23
where a dealer is located may conduct inspections and audits as necessary to ensure
102.24
compliance, refer violations to the city or county attorney for criminal prosecution, and
102.25
notify the registrar of motor vehicles.
102.26
(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
102.27
employee, or representative may not disclose personal information concerning a customer
102.28
without the customer's consent unless the disclosure is required by law or made in response
102.29
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
102.30
safeguards to protect the security of the personal information and prevent unauthorized
102.31
access to or disclosure of the information. For purposes of this paragraph, "personal
102.32
information" is any individually identifiable information gathered in connection with a
102.33
record under paragraph (a).
102
Article 3 Sec. 38.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
103.1
Sec. 39. Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 11, is amended
103.2
to read:
103.3
Subd. 11. Prohibition on possessing catalytic converters; exception. (a) It is unlawful
103.4
for a person to possess a used catalytic converter that is not attached to a motor vehicle
103.5
except when:
103.6
(1) the converter is marked with the date the converter was removed from the vehicle
103.7
and the identification number of the vehicle from which the converter was removed or an
103.8
alternative number to the vehicle identification number, as an alternative to the vehicle
103.9
identification number, any numbers, bar codes, stickers, or other unique markings, whether
103.10
resulting from the pilot project created under subdivision 2b or some other source; or
103.11
(2) the converter has been EPA certified for reuse as a replacement part.
103.12
(b) If an alternative number to the vehicle identification number is used, it must be under
103.13
a numbering system that can be immediately linked to the vehicle identification number by
103.14
law enforcement. The marking of the vehicle identification or alternative number may be
103.15
made in any permanent manner, including but not limited to an engraving or use of permanent
103.16
ink. The marking must clearly and legibly indicate the date removed and the vehicle
103.17
identification number or the alternative number and the method by which law enforcement
103.18
can link the converter to the vehicle identification number.
103.19
Sec. 40. Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 1, is amended
103.20
to read:
103.21
Subdivision 1. Definitions. (a) For purposes of this section, the terms in this subdivision
103.22
have the meanings given.
103.23
(b) "Essential consumer good or service" means a good or service that is vital and
103.24
necessary for the health, safety, and welfare of the public, including without limitation:
103.25
food; water; fuel; gasoline; shelter; construction materials; transportation; health care
103.26
services; pharmaceuticals; and medical, personal hygiene, sanitation, and cleaning supplies.
103.27
(c) "Restoration and mitigation services provider" means a person or business that
103.28
provides a service to prevent further damage to property following a fire, smoke, water, or
103.29
storm event. Services include but are not limited to boarding up property, water extraction,
103.30
drying, smoke or odor removal, cleaning, and personal property inventory, removal, and
103.31
storage.
103.32
(d) "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
103.33
goods and services.
103
Article 3 Sec. 40.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
104.1
(e) "Tree trimmer" means a person registered under section 18G.07.
104.2
(d) (f) "Unconscionably excessive price" means a price that represents a gross disparity
104.3
compared to the seller's average price of an essential good or service, offered for sale or
104.4
sold in the usual course of business, in the 60-day period before an abnormal market
104.5
disruption is declared under subdivision 2. None of the following is an unconscionably
104.6
excessive price:
104.7
(1) a price that is substantially related to an increase in the cost of manufacturing,
104.8
obtaining, replacing, providing, or selling a good or service;
104.9
(2) a price that is no more than 25 percent above the seller's average price during the
104.10
60-day period before an abnormal market disruption is declared under subdivision 2;
104.11
(3) a price that is consistent with the fluctuations in applicable commodity markets or
104.12
seasonal fluctuations; or
104.13
(4) a contract price, or the results of a price formula, that was established before an
104.14
abnormal market disruption is declared under subdivision 2.
104.15
Sec. 41. Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 5, is amended
104.16
to read:
104.17
Subd. 5. Prices and rates. Upon the occurrence of a weather event classified as a severe
104.18
thunderstorm pursuant to the criteria established by the National Oceanic and Atmospheric
104.19
Administration, a residential building contractor, tree trimmer, or restoration and mitigation
104.20
services provider operating within the geographic region impacted by the weather event
104.21
and repairing damage caused by the weather event shall not:
104.22
(1) charge an unconscionably excessive price for labor in comparison to the market price
104.23
charged for comparable services in the geographic region impacted by the weather event;
104.24
or
104.25
(2) charge an insurance company a rate that exceeds what the residential building
104.26
contractor, tree trimmer, or restoration and mitigation services provider would otherwise
104.27
charges members charge a member of the general public.
104.28
Sec. 42. Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 6, is amended
104.29
to read:
104.30
Subd. 6. Civil penalty. A person who is found to have violated this section subdivision
104.31
4 is subject to a civil penalty of not more than $1,000 per sale or transaction, with a maximum
104
Article 3 Sec. 42.
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REVISOR
RSI
105.1
penalty of $25,000 per day. No other penalties may be imposed for the same conduct
105.2
regulated under this section subdivision 4.
105.3
Sec. 43. Minnesota Statutes 2023 Supplement, section 325E.80, subdivision 7, is amended
105.4
to read:
105.5
Subd. 7. Enforcement authority. (a) The attorney general may investigate and bring
105.6
an action using the authority under section 8.31 against a seller or, residential building
105.7
contractor, tree trimmer, or restoration and mitigation services provider for an alleged
105.8
violation of this section.
105.9
(b) Nothing in this section creates a private cause of action in favor of a person injured
105.10
by a violation of this section.
105.11
Sec. 44. Minnesota Statutes 2022, section 325F.03, is amended to read:
105.12
325F.03 FLAME RESISTANT PUBLIC ASSEMBLY TENTS.
105.13
No person, firm or corporation shall establish, maintain or operate any circus, side show,
105.14
carnival, tent show, theater, skating rink, dance hall, or a similar exhibition, production,
105.15
engagement or offering or other place of assemblage in or under which ten 15 or more
105.16
persons may gather for any lawful purpose in any tent, awning or other fabric enclosure
105.17
unless such tent, awning or other fabric enclosure, and all auxiliary tents, curtains, drops,
105.18
awnings and all decorative materials, are made from a nonflammable material or are treated
105.19
and maintained in a flame resistant condition. This section shall does not apply to tents
105.20
designed or manufactured for camping, backpacking, mountaineering, or children's play;
105.21
tents used to conduct committal services on the grounds of a cemetery,; nor to tents, awnings
105.22
or other fabric enclosures erected and used within a sound stage, or other similar structural
105.23
enclosure which is equipped with an overhead automatic sprinkler system.
105.24
Sec. 45. Minnesota Statutes 2022, section 325F.04, is amended to read:
105.25
325F.04 FLAME RESISTANT TENTS AND SLEEPING BAGS.
105.26
No person, firm, or corporation may sell or offer for sale or manufacture for sale in this
105.27
state any tent subject to section 325F.03 unless all fabrics or pliable materials in the tent
105.28
are durably flame resistant. No person, firm or corporation may sell or offer for sale or
105.29
manufacture for sale in this state any sleeping bag unless it meets the standards of the
105.30
commissioner of public safety for flame resistancy. Tents and sleeping bags subject to
105.31
section 325F.03 shall be conspicuously labeled as being durably flame resistant.
105
Article 3 Sec. 45.
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REVISOR
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106.1
Sec. 46. Minnesota Statutes 2022, section 325F.05, is amended to read:
106.2
325F.05 RULES.
106.3
The commissioner of public safety shall act so as to have effective rules concerning
106.4
standards for nonflammable, flame resistant and durably flame resistant materials and for
106.5
labeling requirements by January 1, 1976 under sections 325F.03 and 325F.04. In order to
106.6
comply with sections 325F.03 and 325F.04 all materials and labels must comply with the
106.7
rules adopted by the commissioner. The commissioner has general rulemaking power to
106.8
otherwise implement sections 325F.03 to 325F.07.
106.9
Sec. 47. [325F.078] SALES OF AEROSOL DUSTERS CONTAINING 1,1-
106.10
DIFLUOROETHANE (DFE).
106.11
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
106.12
the meanings given.
106.13
(b) "Aerosol duster" means a product used to clean electronics and other items by means
106.14
of an aerosol sprayed from a pressurized container.
106.15
(c) "Behind-the-counter" means placement by a retailer of a product to ensure that
106.16
customers do not have direct access to the product before a sale is made, requiring the seller
106.17
to deliver the product directly to the buyer.
106.18
(d) "DFE" or "1,1-difluoroethane" means a chemical with a Chemicals Abstract Service
106.19
Registry Number of 75-37-6.
106.20
Subd. 2. Requirements for retail sale. A retailer must only sell an aerosol duster that
106.21
contains DFE:
106.22
(1) from behind the counter;
106.23
(2) to a purchaser who presents valid evidence that the purchaser is at least 21 years of
106.24
age; and
106.25
(3) in a quantity that complies with the purchasing limit established in subdivision 3.
106.26
Subd. 3. Purchasing limit. (a) A retailer is prohibited from selling more than three cans
106.27
of an aerosol duster containing DFE to a customer in a single transaction.
106.28
(b) A retailer is prohibited from selling aerosol dusters containing DFE through same
106.29
day pick up services or same day delivery services.
106.30
Subd. 4. Exemption. (a) Subdivisions 2 and 3 do not apply to a business purchasing
106.31
aerosol dusters online.
106
Article 3 Sec. 47.
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REVISOR
RSI
107.1
(b) Office wholesalers can sell more than three cans of aerosol dusters containing DFE
107.2
to a business they have a contract with.
107.3
Subd. 5. Labeling. (a) An aerosol duster manufactured after May 31, 2025, must not be
107.4
sold in this state unless the aerosol duster clearly warns against the dangers of intentionally
107.5
misusing duster aerosol products.
107.6
(b) The font size of this warning shall be the same or larger than other warning language.
107.7
The font color and background of the label must be in contrasting colors.
107.8
(c) The label on each can of aerosol duster containing DFE must contain the following:
107.9
(1) the words "DANGER: DEATH! Breathing this product to get high can kill you!";
107.10
and
107.11
(2) the poison control phone number, 1-800-222-1222.
107.12
(d) In order to comply with paragraph (a), a label may include, but is not limited to the
107.13
words:
107.14
(1) "Deliberate misuse by concentrating and inhaling the contents can be harmful or
107.15
fatal!"; and
107.16
(2) "Intentional misuse by deliberately concentrating and inhaling the vapors can be
107.17
harmful or fatal!".
107.18
(e) The safety symbols and color standards of the label described in this section must
107.19
conform with the ANSI Z535 safety signage standards guidelines established by the American
107.20
National Standards Institute.
107.21
Subd. 6. Violations. (a) A person who violates subdivision 2 or 3 is guilty of a
107.22
misdemeanor.
107.23
(b) It is an affirmative defense to a charge under subdivision 2, clause (2), if the defendant
107.24
proves by a preponderance of the evidence that the defendant reasonably and in good faith
107.25
relied on proof of age as described in section 340A.503, subdivision 6.
107.26
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to purchases
107.27
of aerosol dusters made on or after that date.
107.28
Sec. 48. Minnesota Statutes 2022, section 325F.56, subdivision 2, is amended to read:
107.29
Subd. 2. Repairs. "Repairs" means work performed for a total price of more than $100
107.30
and less than $7,500, including the price of parts and materials, to restore a malfunctioning,
107.31
defective, or worn motor vehicle, appliance, or dwelling place used primarily for personal,
107
Article 3 Sec. 48.
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REVISOR
RSI
108.1
family, or household purposes and not primarily for business or agricultural purposes.
108.2
"Repairs" do not include service calls or estimates.
108.3
Sec. 49. Minnesota Statutes 2022, section 325F.62, subdivision 3, is amended to read:
108.4
Subd. 3. Required notice to be displayed. Each shop shall conspicuously display a
108.5
sign that states the following: "Upon a customer's request, this shop is required to provide
108.6
a written estimate for repairs costing more than $100 to $7,500 if the shop agrees to perform
108.7
the repairs. The shop's final price cannot exceed its written estimate by more than ten percent
108.8
without the prior authorization of the customer. You must request that the estimate be in
108.9
writing. An oral estimate is not subject to the above repair cost limitations." If the shop
108.10
charges a fee for the storage or care of repaired motor vehicles or appliances, the shop shall
108.11
conspicuously display a sign that states the amount assessed for storage or care, when the
108.12
charge begins to accrue, and the interval of time between assessments."
108.13
Sec. 50. [325F.782] DEFINITIONS.
108.14
Subdivision 1. Scope. For purposes of sections 325F.782 to 325F.7822, the following
108.15
terms have the meanings given.
108.16
Subd. 2. Minor. "Minor" means an individual who is younger than 21 years of age.
108.17
Subd. 3. Vapor product. "Vapor product" means a noncombustible product that employs
108.18
a heating element, power source, electronic circuit, or other electronic, chemical, or
108.19
mechanical means, regardless of shape or size, that can be used to produce vapor from
108.20
nicotine or any other substance, and the use or inhalation of which simulates smoking. Vapor
108.21
product includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic
108.22
pipe, or similar product or device. Vapor product also includes a vapor cartridge or other
108.23
container of nicotine or other substance in a solution or other form that is intended to be
108.24
used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe,
108.25
or similar product or device.
108.26
Sec. 51. [325F.7821] PROHIBITION ON DECEPTIVE VAPOR PRODUCTS.
108.27
A person or entity must not market, promote, label, brand, advertise, distribute, offer
108.28
for sale, or sell a vapor product by:
108.29
(1) imitating a product that is not a vapor product, including but not limited to:
108.30
(i) a food or brand of food commonly marketed to minors, including but not limited to
108.31
candy, desserts, and beverages;
108
Article 3 Sec. 51.
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REVISOR
RSI
109.1
(ii) school supplies commonly used by minors, including but not limited to erasers,
109.2
highlighters, pens, and pencils; and
109.3
(iii) a product based on or depicting a character, personality, or symbol known to appeal
109.4
to minors, including but not limited to a celebrity; a character in a comic book, movie,
109.5
television show, or video game; and a mythical creature;
109.6
(2) attempting to conceal the nature of the vapor product from parents, teachers, or other
109.7
adults; or
109.8
(3) using terms for, describing, or depicting any product described in clause (1).
109.9
Sec. 52. [325F.812] CELLULAR TELEPHONE CASES.
109.10
Subdivision 1. Certain cellular telephone cases; prohibition. A person is prohibited
109.11
from purchasing, possessing, importing, manufacturing, selling, holding for sale, or
109.12
distributing a cellular telephone case, stand, or cover that is a facsimile of or reasonably
109.13
appears to be a firearm, including but not limited to a pistol or revolver.
109.14
Subd. 2. Enforcement. This section may be enforced by the attorney general under
109.15
section 8.31, but a court may not impose a civil penalty of more than $500 for a violation
109.16
of this section.
109.17
Sec. 53. Minnesota Statutes 2022, section 325G.24, is amended to read:
109.18
325G.24 RIGHT OF CANCELLATION.
109.19
Subdivision 1. Right of cancellation. (a) Any person who has elected to become a
109.20
member of a club may unilaterally cancel such membership, in the person's exclusive
109.21
discretion, by giving written notice of cancellation at any time before midnight of the third
109.22
business day following the date on which membership was attained. Notice of cancellation
109.23
may be given personally or by mail.
109.24
(b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed
109.25
and postage prepaid. Notice of cancellation need not take a particular form and is sufficient
109.26
if it indicates, by any form of written expression, the intention of the member not to be
109.27
bound by the contract.
109.28
(c) Cancellation under this subdivision shall be without liability on the part of the member
109.29
and the member shall be entitled to a refund, within ten days after notice of cancellation is
109.30
given, of the entire consideration paid for the contract. Rights of cancellation may not be
109.31
waived or otherwise surrendered.
109
Article 3 Sec. 53.
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REVISOR
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110.1
Subd. 2. Right of member unilateral termination. (a) Any person who has elected to
110.2
become a member of a club may unilaterally terminate such membership, in the person's
110.3
exclusive discretion, by giving notice of termination at any time.
110.4
(b) If given by mail, the notice is effective upon deposit in a mailbox, properly addressed,
110.5
and postage prepaid.
110.6
(c) A club must not impose a termination fee or any other liability on the member for
110.7
termination under this subdivision.
110.8
(d) Termination under this subdivision is effective at the end of the membership term
110.9
in which the member provides the notice of termination. If membership is at-will without
110.10
a defined membership term, then termination under this subdivision is effective immediately,
110.11
unless the member indicates a future effective date of termination, in which event the date
110.12
indicated by the member is the effective date of termination.
110.13
(e) If a member provides notice of termination at any time before midnight of the third
110.14
business day following the date on which membership was attained, the club must treat the
110.15
notice as a notice of cancellation under subdivision 1, unless the member specifically
110.16
provides for a future termination effective date.
110.17
Subd. 3. Notice requirements. (a) A club must accept a notice of cancellation or notice
110.18
of termination that has been given:
110.19
(1) verbally, including but not limited to personally or over the telephone to customer
110.20
or account service members;
110.21
(2) in writing, including but not limited to via mail, email, or an online message through
110.22
the club's website directed to customer or account service members;
110.23
(3) through a termination election as described in section 325G.60; or
110.24
(4) in any other manner or medium by which the member initially accepted membership
110.25
to the club and that is no more burdensome to the member than was the initial acceptance.
110.26
(b) The process to cancel must be stated clearly and be easily accessible and completed
110.27
with ease.
110.28
Subd. 4. No waiver. A right of cancellation or right of termination under this section
110.29
may not be waived or otherwise surrendered.
110.30
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
110.31
entered into, modified, or renewed on or after that date.
110
Article 3 Sec. 53.
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REVISOR
RSI
111.1
Sec. 54. Minnesota Statutes 2022, section 325G.25, subdivision 1, is amended to read:
111.2
Subdivision 1. Form and content. A copy of every contract shall be delivered to the
111.3
member at the time the contract is signed. Every contract must be in writing, must be signed
111.4
by the member, must designate the date on which the member signed the contract and must
111.5
state, clearly and conspicuously in boldface type of a minimum size of 14 points, the
111.6
following:
111.7
"MEMBERS' RIGHT TO CANCEL"
111.8
"If you wish to cancel this contract, you may cancel in-person, over the phone, by
111.9
delivering or mailing a written notice to the club, via email or an online message through
111.10
the club's website, through the "termination election" provided on the club's website (if
111.11
applicable) and as described in Minnesota Statutes, section 325G.60, or in any other manner
111.12
or medium by which you initially accepted membership to the club. The notice must say
111.13
that you do not wish to be bound by the contract and must be delivered or mailed be provided
111.14
to the club before midnight of the third business day after you sign this contract. The notice
111.15
must be delivered or mailed to: (Insert name and mailing address of club). If you cancel,
111.16
the club will return, within ten days of the date on which you give notice of cancellation,
111.17
any payments you have made."
111.18
"MEMBERS' RIGHT TO UNILATERAL TERMINATION"
111.19
"You may unilaterally terminate this contract in your exclusive discretion at any time.
111.20
If you terminate, your membership will terminate at the end of the membership term in
111.21
which you provided the club with notice of termination. If your membership is at-will
111.22
without a defined membership term, then your membership will terminate immediately,
111.23
unless you indicate a future effective date of termination. If you wish to terminate this
111.24
contract, you may terminate in-person, over the phone, by delivering or mailing a written
111.25
notice to the club, via email or an online message through the club's website, through the
111.26
"termination election" provided on the club's website (if applicable) and as described in
111.27
Minnesota Statutes, section 325G.60, or in any other manner or medium by which you
111.28
initially accepted membership to the club. The club may not impose a termination fee or
111.29
any other liability on you for termination."
111.30
"NOTICE INFORMATION"
111.31
"If you wish to provide notice of cancellation or notice of termination to the club:
111.32
In-person or by mail, the applicable address is: [Insert name and mailing address of
111.33
club];
111
Article 3 Sec. 54.
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3rd Engrossment
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REVISOR
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112.1
Over the phone, the applicable phone number is: [Insert phone number of club];
112.2
Via email, the applicable email address is: [Insert email address of club];
112.3
On the club's website, the applicable website address is: [Insert address, if applicable]."
112.4
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
112.5
entered into, modified, or renewed on or after that date.
112.6
Sec. 55. [325G.56] DEFINITIONS.
112.7
Subdivision 1. Scope. For purposes of sections 325G.56 to 325G.62, the terms defined
112.8
in this section have the meanings given them.
112.9
Subd. 2. Automatic renewal. "Automatic renewal" means a plan or arrangement in
112.10
which a subscription or purchasing agreement is automatically renewed at the end of a
112.11
definite term for a subsequent term.
112.12
Subd. 3. Clear and conspicuous. "Clear and conspicuous" means in larger type than
112.13
the surrounding text, or in contrasting type, font, or color to the surrounding text of the same
112.14
size, or set off from the surrounding text of the same size by symbols or other marks, in a
112.15
manner that calls attention to the language. In the case of an audio disclosure, "clear and
112.16
conspicuous" means in a volume and cadence sufficient to be readily audible and
112.17
understandable.
112.18
Subd. 4. Consumer. "Consumer" means any individual who seeks or acquires, by
112.19
purchase or lease, any goods, services, money, or credit for personal, family, or household
112.20
purposes. Consumer includes but is not limited to a member as defined in section 325G.23,
112.21
unless the context clearly indicates otherwise.
112.22
Subd. 5. Continuous service. "Continuous service" means a plan or arrangement in
112.23
which a subscription or purchasing agreement continues until the consumer terminates the
112.24
agreement.
112.25
Subd. 6. Indefinite subscription agreement. "Indefinite subscription agreement" means
112.26
a subscription or purchasing agreement:
112.27
(1) between a seller and a consumer in Minnesota; and
112.28
(2) subject to automatic renewal or continuous service.
112.29
Indefinite subscription agreements include but are not limited to contracts, as defined in
112.30
section 325G.23, subject to automatic renewal or continuous service.
112.31
Subd. 7. Offer terms. "Offer terms" means the following disclosures:
112
Article 3 Sec. 55.
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REVISOR
RSI
113.1
(1) that the indefinite subscription agreement will continue until the consumer terminates
113.2
the agreement;
113.3
(2) the description of the cancellation policy that applies to the indefinite subscription
113.4
agreement;
113.5
(3) the recurring charges that will be charged to the consumer's credit or debit card or
113.6
payment account with a third party as part of the plan or arrangement and that the amount
113.7
of the charge may change, if that is the case, and the amount to which the charge will change,
113.8
if known;
113.9
(4) the length of the automatic renewal term or that the service is continuous, unless the
113.10
length of the term is definite and chosen by the consumer; and
113.11
(5) the minimum purchase obligation, if any.
113.12
Subd. 8. Seller. "Seller" means a seller, lessor, licensor, or professional who advertises,
113.13
solicits, or engages in consumer transactions, or a manufacturer, distributor, or licensor who
113.14
advertises and sells, leases, or licenses goods or services to be resold, leased, or sublicensed
113.15
by other persons in consumer transactions. Seller includes but is not limited to a club as
113.16
defined in section 325G.23, unless the context clearly indicates otherwise.
113.17
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
113.18
entered into, modified, or renewed on or after that date.
113.19
Sec. 56. [325G.57] REQUIREMENTS FOR AUTOMATIC RENEWAL OR
113.20
CONTINUOUS SERVICE.
113.21
Subdivision 1. Notices upon offer. A seller making an offer for an indefinite subscription
113.22
agreement must, before the consumer accepts the offer, present the offer terms in a clear
113.23
and conspicuous manner to the consumer and in visual proximity, or in the case of an offer
113.24
conveyed by voice, in temporal proximity, to the offer's proposal.
113.25
Subd. 2. Confirmation upon consumer consent. A seller making an offer for an
113.26
indefinite subscription agreement must, in a timely manner after the consumer accepts the
113.27
offer, provide the consumer with confirmation of the consumer's acceptance of the offer,
113.28
in a manner that is capable of being retained by the consumer, that includes the following:
113.29
(1) the offer terms;
113.30
(2) if the offer includes a free trial, information on how to cancel the free trial before
113.31
the consumer pays or becomes obligated to pay for any goods or services in connection
113.32
with the free trial; and
113
Article 3 Sec. 56.
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REVISOR
RSI
114.1
(3) options for termination of the indefinite subscription agreement, which options must
114.2
be easy to use, cost-effective, and timely for all consumers:
114.3
(i) if a seller makes offers for an indefinite subscription agreement through an online
114.4
website, a termination election as set forth in section 325G.60; and
114.5
(ii) if a consumer enters into the indefinite subscription agreement through any means
114.6
other than a toll-free telephone number, an email address, or a postal address, then an option
114.7
substantially similar to, as easy to use, and as accessible as the initial means of consumer
114.8
acceptance of the agreement.
114.9
A communication of the required information through email is sufficient to meet the
114.10
requirements of this subdivision.
114.11
Subd. 3. Material changes. Upon a material change in the terms of the indefinite
114.12
subscription agreement, the seller must provide to the consumer in a timely manner, and in
114.13
any case prior to the implementation of the material change, a clear and conspicuous notice
114.14
of the material change and provide information regarding how to terminate the agreement
114.15
in a manner that is capable of being retained by the consumer. A material change in the
114.16
terms of an indefinite subscription agreement in violation of this subdivision is void and
114.17
unenforceable.
114.18
Subd. 4. Free trials. A seller making an offer for an indefinite subscription agreement
114.19
that includes a free trial lasting more than 30 days must, no fewer than five days and no
114.20
more than 30 days before the end of any such free trial, notify the consumer of the consumer's
114.21
option to cancel the free trial before the end of the trial period to avoid an obligation to pay
114.22
for the goods or services.
114.23
Subd. 5. Periodic notice of continuous service. (a) If an indefinite subscription
114.24
agreement is subject to continuous service, the seller must give the consumer written notice
114.25
of the continuous service at least once per calendar year via mail or email.
114.26
(b) The notice required under this subdivision must include the terms of the service and
114.27
how to terminate or manage the service.
114.28
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
114.29
entered into, modified, or renewed on or after that date.
114
Article 3 Sec. 56.
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REVISOR
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115.1
Sec. 57. [325G.58] PROHIBITED CONDUCT.
115.2
Subdivision 1. Definition; agreement. For purposes of this section, "agreement" means
115.3
an indefinite subscription agreement, as defined in section 325G.56, and a contract, as
115.4
defined in section 325G.23.
115.5
Subd. 2. Charges prior to effective date. A seller must not charge the consumer's credit
115.6
or debit card or the consumer's account with a third party in connection with an agreement
115.7
before the agreement has been duly authorized by the seller and consumer and made effective.
115.8
Subd. 3. Right of first refusal. An agreement must not require the consumer to permit
115.9
the seller to match any offer the consumer has received. A provision in an agreement that
115.10
violates this subdivision is void and unenforceable.
115.11
Subd. 4. No abusive tactics or offers upon notice. (a) A seller that has received a notice
115.12
of cancellation or notice of termination of an agreement from a consumer cannot:
115.13
(1) make any misrepresentation or undertake any unfair or abusive tactic to delay,
115.14
unreasonably delay, or avoid the cancellation or termination of the agreement; or
115.15
(2) make or provide additional benefits, contract modifications, gifts, or similar offers
115.16
to the consumer until the seller has obtained permission from the consumer, granted by the
115.17
consumer after notice of cancellation or termination was given to the seller, for the seller
115.18
to engage in any such activity.
115.19
(b) A seller can only seek a consumer's permission under this paragraph once per
115.20
cancellation or termination attempt. A consumer's grant of permission under this paragraph
115.21
is limited to the immediate cancellation or termination attempt and does not apply to
115.22
subsequent attempts.
115.23
Subd. 5. Exceptions. This section does not prohibit a seller from:
115.24
(1) asking the consumer the reasons for cancellation or termination, provided that a
115.25
consumer is not required to answer as a condition of cancellation or termination;
115.26
(2) informing the consumer of any consequences of canceling or terminating the
115.27
subscription;
115.28
(3) verifying the identity of the consumer; or
115.29
(4) describing options to maintain an ongoing relationship with the seller, including but
115.30
not limited to for downgrading, pausing, or suspending the subscription.
115.31
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
115.32
entered into, modified, or renewed on or after that date.
115
Article 3 Sec. 57.
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116.1
Sec. 58. [325G.59] CONSUMER'S RIGHT TO TERMINATE.
116.2
Subdivision 1. Termination of agreement subject to automatic renewal. A consumer
116.3
may terminate an indefinite subscription agreement subject to automatic renewal at any
116.4
time by following the procedure set forth in the confirmation described in section 325G.57,
116.5
subdivision 2. A termination under this subdivision is effective at the end of the term in
116.6
which notice of termination is provided by the consumer, unless the consumer specifies a
116.7
termination date occurring at the end of a subsequent term, in which event the termination
116.8
is effective as of the date specified by the consumer, if the option is available.
116.9
Subd. 2. Termination of agreement subject to continuous service. (a) A consumer
116.10
may terminate an indefinite subscription agreement subject to continuous service at any
116.11
time by following the procedure set forth in the confirmation described in section 325G.57,
116.12
subdivision 2. A termination under this subdivision must take effect no later than 31 days
116.13
from the date of a verified consumer's notice of termination unless the consumer specifies
116.14
a future termination date, in which event the termination is effective as of such date.
116.15
(b) This subdivision does not require a seller to provide an option to set a future
116.16
termination date.
116.17
Subd. 3. Termination in absence of confirmation or notice. If the seller fails to provide
116.18
either the confirmation required under section 325G.57, subdivision 2, or a notice required
116.19
by section 325G.57, subdivision 5, the consumer may terminate the indefinite subscription
116.20
agreement by any reasonable means at any time, including but not limited to by mail, email,
116.21
telephone, an online option, a termination election under section 325G.60, or the means by
116.22
which the consumer entered into the agreement, at no cost to the consumer.
116.23
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
116.24
entered into, modified, or renewed on or after that date.
116.25
Sec. 59. [325G.60] TERMINATION ELECTION REQUIREMENT.
116.26
Subdivision 1. Definition; agreement. For purposes of this section, "agreement" means
116.27
an indefinite subscription agreement, as defined in section 325G.56, and a contract, as
116.28
defined in section 325G.23.
116.29
Subd. 2. Termination election required. (a) If a seller has a website with profile or
116.30
subscription management capabilities, then such website must include a termination election
116.31
on the website. The termination election must be clear and conspicuous on the website and
116.32
must use plain language to convey that any consumer may use the termination election to
116.33
terminate the agreement at any time. The termination election must only require a consumer
116
Article 3 Sec. 59.
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REVISOR
RSI
117.1
to input information that is necessary to process the termination. The termination election
117.2
must include a checkbox, submission button, or similarly common and simple mechanism
117.3
for the member to indicate a desire to terminate the agreement.
117.4
(b) For purposes of this section, "termination election" means a simple and easily
117.5
accessible means for a consumer to quickly provide notice of termination, and that does not
117.6
include undue complexity, confusion, or misrepresentation by the seller.
117.7
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
117.8
entered into, modified, or renewed on or after that date.
117.9
Sec. 60. [325G.61] UNCONDITIONAL GIFTS.
117.10
Any good, including but not limited to any ware, merchandise, or product, is an
117.11
unconditional gift to the consumer if a seller sends the good under an indefinite subscription
117.12
agreement without first obtaining the consumer's affirmative consent to the agreement in
117.13
accordance with section 325G.57. The consumer may use or dispose of the good in any
117.14
manner without any obligation to the seller, including but not limited to any obligation
117.15
relating to shipping of the good.
117.16
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
117.17
entered into, modified, or renewed on or after that date.
117.18
Sec. 61. [325G.62] EXEMPTION.
117.19
Sections 325G.56 to 325G.61 do not apply to:
117.20
(1) contracts governed by another state or federal statute or regulation specifically
117.21
intended to regulate automatic renewal or continuous service;
117.22
(2) any licensee as defined in section 60A.985, subdivision 8, and any affiliate of such
117.23
a licensee as defined in section 60D.15, subdivision 2;
117.24
(3) an individual or business licensed by the Department of Labor and Industry as a
117.25
technology system contractor or power limited technician as defined in section 326B.31;
117.26
(4) any service provided by a business or its affiliate where either the business or its
117.27
affiliate is licensed or regulated by the Public Utilities Commission, the Federal
117.28
Communications Commission, or the Federal Energy Regulatory Commission; or
117.29
(5) any person or entity registered or licensed with the Financial Industry Regulatory
117.30
Authority, the Securities and Exchange Commission, or under the Minnesota Securities
117.31
Act.
117
Article 3 Sec. 61.
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REVISOR
RSI
118.1
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
118.2
entered into, modified, or renewed on or after that date.
118.3
Sec. 62. [325G.63] ENFORCEMENT.
118.4
A seller is not subject to civil penalties if the seller has made a good faith effort to comply
118.5
with each applicable provision of sections 325G.56 to 325G.61.
118.6
EFFECTIVE DATE. This section is effective January 1, 2025, and applies to contracts
118.7
entered into, modified, or renewed on or after that date.
118.8
Sec. 63. [325O.01] CITATION.
118.9
This chapter may be cited as the "Prohibiting Social Media Manipulation Act."
118.10
EFFECTIVE DATE. This section is effective July 1, 2025.
118.11
Sec. 64. [325O.02] DEFINITIONS.
118.12
(a) For purposes of this chapter, the following terms have the meanings given.
118.13
(b) "Accessible user interface" means a way for a user to input data, make a choice, or
118.14
take an action on a social media platform in two clicks or fewer.
118.15
(c) "Account holder" means a natural person or legal person who holds an account or
118.16
profile with a social media platform.
118.17
(d) "Account interactions" means any action that a user can make within a social media
118.18
platform that could have a negative impact on another account holder. Account interactions
118.19
include but are not limited to:
118.20
(1) sending messages or invitations to users;
118.21
(2) reporting users;
118.22
(3) commenting on, resharing, liking, voting, or otherwise reacting to users' user-generated
118.23
content; and
118.24
(4) posting user-generated content or disseminating user-generated content to users.
118.25
Actions that have no impact on other users, including viewing user-generated content or
118.26
public content, are not account interactions.
118.27
(e) "Algorithmic ranking system" means a computational process, including one derived
118.28
from algorithmic decision making, machine learning, statistical analysis, or other data
118.29
processing or artificial intelligence techniques, used to determine the selection, order, relative
118
Article 3 Sec. 64.
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REVISOR
RSI
119.1
prioritization, or relative prominence of content from a set of information that is provided
119.2
to a user on a social media platform, including search results ranking, content
119.3
recommendations, content display, or any other automated content selection method.
119.4
(f) "Conspicuously" means the information is presented in a manner, given the
119.5
information's size, color, contrast, location, and proximity to any related information, as to
119.6
be readily noticed and understood by a reasonable user.
119.7
(g) "Content" means any media, including but not limited to written posts, images, visual
119.8
or audio recordings, notifications, and games, that a user views, reads, watches, listens to,
119.9
or otherwise interacts or engages with on a social media platform. Content includes other
119.10
account holders' accounts or profiles when recommended to a user by the social media
119.11
platform.
119.12
(h) "Engage" or "engagement" means a user's utilization of the social media platform.
119.13
(i) "Expressed preferences" means a freely given, considered, specific, and unambiguous
119.14
indication of a user's preferences regarding the user's engagement with a social media
119.15
platform. Expressed preferences must not be based on the user's time spent engaging with
119.16
content on the social media platform or on the use of features that do not indicate explicit
119.17
preference, including comments made, posts reshared, or similar actions that may be taken
119.18
on content the user perceives to be of low quality. Expressed preferences must not be
119.19
obtained through a user interface designed or manipulated with the substantial effect of
119.20
subverting or impairing a user's decision making.
119.21
(j) "Social media platform" means an electronic medium, including a browser-based or
119.22
application-based interactive computer service, Internet website, telephone network, or data
119.23
network, that allows an account holder to create, share, and view user-generated content
119.24
for a substantial purpose of social interaction, sharing user-generated content, or personal
119.25
networking. Social media platform does not include:
119.26
(1) an Internet search provider;
119.27
(2) an Internet service provider;
119.28
(3) an email service;
119.29
(4) a streaming service, online video game, e-commerce, or other Internet website where
119.30
the content is not user generated but where interactive functions enable chat, comments,
119.31
reviews, or other interactive functionality that is incidental to, directly related to, or dependent
119.32
upon providing the content;
119
Article 3 Sec. 64.
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REVISOR
RSI
120.1
(5) a communication service, including text, audio, or video communication technology,
120.2
provided by a business to the business's employees and clients for use in the course of
120.3
business activities and not for public distribution, except that social media platform includes
120.4
a communication service provided by a social media platform;
120.5
(6) an advertising network with the sole function of delivering commercial content;
120.6
(7) a telecommunications carrier, as defined in United States Code, title 47, section 153;
120.7
(8) a broadband service, as defined in section 116J.39, subdivision 1;
120.8
(9) single-purpose community groups for education or public safety;
120.9
(10) teleconferencing or video-conferencing services that allow reception and transmission
120.10
of audio and video signals for real-time communication, except that social media platform
120.11
includes teleconferencing or video-conferencing services provided by a social media platform;
120.12
(11) cloud computing services, which may include cloud storage and shared document
120.13
collaboration;
120.14
(12) providing or obtaining technical support for a platform, product, or service; or
120.15
(13) a platform designed primarily and specifically for creative professional users, as
120.16
distinct from the general public, to share their portfolio and creative content, engage in
120.17
professional networking, acquire clients, and market the creative professional user's creative
120.18
content and creative services through facilitated transactions.
120.19
(k) "Time sensitive" means content that is welcomed under a user's expressed preferences
120.20
and that has significantly reduced value to the user with the passing of time.
120.21
(l) "User" means a natural person who is located in Minnesota and who holds an account
120.22
or profile with a social media platform.
120.23
(m) "User-generated content" means any content created by an account holder that is
120.24
uploaded, posted, shared, or disseminated on the social media platform.
120.25
EFFECTIVE DATE. This section is effective July 1, 2025.
120.26
Sec. 65. [325O.03] SCOPE; EXCLUSIONS.
120.27
(a) A social media platform is subject to this chapter if the social media platform:
120.28
(1) does business in Minnesota or provides products or services that are targeted to
120.29
residents of Minnesota; and
120.30
(2) has more than 10,000 monthly active account holders located in Minnesota.
120
Article 3 Sec. 65.
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3rd Engrossment
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REVISOR
RSI
121.1
(b) For purposes of this chapter, a social media platform may determine whether an
121.2
account holder is located in Minnesota based on:
121.3
(1) the account holder's own supplied address or location;
121.4
(2) global positioning system-level latitude, longitude, or altitude coordinates;
121.5
(3) cellular phone system coordinates;
121.6
(4) Internet protocol device address; or
121.7
(5) other mechanisms that can be used to identify an account holder's location.
121.8
EFFECTIVE DATE. This section is effective July 1, 2025.
121.9
Sec. 66. [325O.04] TRANSPARENCY REQUIREMENTS FOR SOCIAL MEDIA
121.10
PLATFORMS.
121.11
A social media platform must publicly and conspicuously post the following information
121.12
on the social media platform's website:
121.13
(1) an explanation of how the social media platform limits excessive account interactions,
121.14
including:
121.15
(i) the maximum limit on the number of times that a user can engage in each specific
121.16
kind of account interaction in an hour, day, week, and month; and
121.17
(ii) whether and how the platform engages in any reduction in the ability of accounts to
121.18
affect other users when the user engages in a high number of account interactions that is
121.19
below the maximum limit;
121.20
(2) an explanation detailing how the platform:
121.21
(i) assesses the quality of content;
121.22
(ii) assesses users' expressed preferences regarding content; and
121.23
(iii) utilizes the assessments under items (i) and (ii) in each of the social media platform's
121.24
algorithmic ranking system, including how the assessments are weighted in relation to other
121.25
signals in the algorithmic ranking system;
121.26
(3) statistics on the platform's use with respect to the tenth, 25th, 50th, 75th, 90th, 95th,
121.27
99th, and 99.9th percentile of all platform account holders for each distinct type of account
121.28
interaction or engagement, including but not limited to:
121.29
(i) sending invitations or messages to other platform account holders;
121.30
(ii) commenting on, resharing, liking, voting for, or otherwise reacting to content;
121
Article 3 Sec. 66.
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REVISOR
RSI
122.1
(iii) posting new user-generated content;
122.2
(iv) disseminating user-generated content to other platform account holders; and
122.3
(v) time spent on the platform;
122.4
(4) an explanation of how the platform determines whether a notification is time sensitive
122.5
and how many time-sensitive and non-time-sensitive notifications are sent to users including:
122.6
(i) how many time-sensitive and non-time-sensitive notifications are sent with respect
122.7
to the tenth, 25th, 50th, 75th, 90th, 95th, 99th, and 99.9th percentile of all platform account
122.8
holders in a given day; and
122.9
(ii) how many time-sensitive and non-time-sensitive notifications are sent with respect
122.10
to the tenth, 25th, 50th, 75th, 90th, 95th, 99th, and 99.9th percentile of all platform account
122.11
holders during each hour between the hours of 11:00 p.m. and 7:00 a.m.; and
122.12
(5) a description of all product experiments that have been conducted on 1,000 or more
122.13
users, including a description of the experimental conditions and the results of the product
122.14
experiment for all experimental conditions on users' viewing or engaging with content that:
122.15
(i) users indicate to be high or low quality;
122.16
(ii) users indicate complies or does not comply with the users' expressed preferences;
122.17
or
122.18
(iii) violates platform policies.
122.19
EFFECTIVE DATE. This section is effective July 1, 2025.
122.20
Sec. 67. [325O.05] ENFORCEMENT AUTHORITY.
122.21
(a) The attorney general may investigate and bring an action against a social media
122.22
platform for an alleged violation of section 325O.04.
122.23
(b) Nothing in this chapter creates a private cause of action in favor of a person injured
122.24
by a violation of section 325O.04.
122.25
EFFECTIVE DATE. This section is effective July 1, 2025.
122.26
Sec. 68. [332.3352] WAIVER OF LICENSING AND REGISTRATION.
122.27
The commissioner of commerce may, by order, waive the licensing and registration
122.28
requirements of this chapter for a nonresident collection agency and the nonresident collection
122.29
agency's affiliated collectors if: (1) a written reciprocal licensing agreement is in effect
122.30
between the commissioner and the licensing officials of the nonresident collection agency's
122
Article 3 Sec. 68.
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REVISOR
RSI
123.1
home state; and (2) the nonresident collection agency is licensed in good standing in the
123.2
nonresident collection agency's home state.
123.3
Sec. 69. Minnesota Statutes 2023 Supplement, section 332.71, subdivision 2, is amended
123.4
to read:
123.5
Subd. 2. Coerced debt. (a) "Coerced debt" means all or a portion of debt in a debtor's
123.6
name that has been incurred as a result of:
123.7
(1) the use of the debtor's personal information without the debtor's knowledge,
123.8
authorization, or consent;
123.9
(2) the use or threat of force, intimidation, undue influence, harassment, fraud, deception,
123.10
coercion, or other similar means against the debtor; or
123.11
(3) economic abuse perpetrated against the debtor.
123.12
(b) Coerced debt does not include secured debt.
123.13
EFFECTIVE DATE. This section is effective January 1, 2025.
123.14
Sec. 70. Minnesota Statutes 2023 Supplement, section 332.71, subdivision 4, is amended
123.15
to read:
123.16
Subd. 4. Debtor. "Debtor" means a person who (1) is a victim of domestic abuse,
123.17
harassment economic abuse, or sex or labor trafficking, and (2) owes coerced debt.
123.18
EFFECTIVE DATE. This section is effective January 1, 2025.
123.19
Sec. 71. Minnesota Statutes 2023 Supplement, section 332.71, subdivision 5, is amended
123.20
to read:
123.21
Subd. 5. Documentation. "Documentation" means a writing that identifies a debt or a
123.22
portion of a debt as coerced debt, describes the circumstances under which the coerced debt
123.23
was incurred, and takes the form of:
123.24
(1) a police report;
123.25
(2) a Federal Trade Commission identity theft report;
123.26
(3) an order in a dissolution proceeding under chapter 518 that declares that one or more
123.27
debts are coerced; or
123.28
(4) a sworn written certification.
123.29
EFFECTIVE DATE. This section is effective January 1, 2025.
123
Article 3 Sec. 71.
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REVISOR
RSI
124.1
Sec. 72. Minnesota Statutes 2023 Supplement, section 332.71, subdivision 7, is amended
124.2
to read:
124.3
Subd. 7. Economic abuse. "Economic abuse" means behavior in the context of a domestic
124.4
relationship that controls, restrains, restricts, impairs, or interferes with the ability of a victim
124.5
of domestic abuse, harassment, or sex or labor trafficking debtor to acquire, use, or maintain
124.6
economic resources, including but not limited to:
124.7
(1) withholding or restricting access to, or the acquisition of, money, assets, credit, or
124.8
financial information;
124.9
(2) interfering with the victim's ability to work and earn wages; or
124.10
(3) exerting undue influence over a person's financial and economic behavior or decisions.
124.11
EFFECTIVE DATE. This section is effective January 1, 2025.
124.12
Sec. 73. Minnesota Statutes 2023 Supplement, section 332.72, is amended to read:
124.13
332.72 COERCED DEBT PROHIBITED.
124.14
(a) A person is prohibited from causing another person to incur coerced debt.
124.15
(b) A person who causes another person to incur a coerced debt in violation of this
124.16
section is civilly liable to the creditor for the amount of the debt, or portion of the debt,
124.17
determined by a court to be coerced debt, plus the creditor's reasonable attorney fees and
124.18
costs, provided the creditor follows the procedures under section 332.74, subdivision 3,
124.19
paragraph (b).
124.20
EFFECTIVE DATE. This section is effective January 1, 2025.
124.21
Sec. 74. Minnesota Statutes 2023 Supplement, section 332.73, subdivision 1, is amended
124.22
to read:
124.23
Subdivision 1. Notification. (a) Before taking an affirmative action under section 332.74,
124.24
a debtor must, by certified mail, notify a creditor that the debt or a portion of a debt on
124.25
which the creditor demands payment is coerced debt and request that the creditor cease all
124.26
collection activity on the coerced debt. The notification and request must be in writing and
124.27
include documentation. If not already included in documentation, the notification must
124.28
include a signed statement that includes:
124.29
(1) an assertion that the debtor is a victim of domestic abuse, economic abuse, or sex or
124.30
labor trafficking;
124
Article 3 Sec. 74.
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REVISOR
RSI
125.1
(2) a recitation of the facts supporting the claim that the debt is coerced; and
125.2
(3) if only a portion of the debt is claimed to be coerced debt, an itemization of the
125.3
portion of the debt that is claimed to be coerced debt.
125.4
(b) The creditor, within 30 days of the date the notification and request is received, must
125.5
notify the debtor in writing of the creditor's decision to either immediately cease all collection
125.6
activity or continue to pursue collection. If a creditor ceases collection but subsequently
125.7
decides to resume collection activity, the creditor must notify the debtor ten days prior to
125.8
the date the collection activity resumes.
125.9
(b) If a creditor ceases collection but subsequently decides to resume collection activity,
125.10
the creditor must notify the debtor ten days prior to the date the collection activity resumes.
125.11
(c) A debtor must not proceed with an action under section 332.74 until the 30-day
125.12
period provided under paragraph (a) has expired.
125.13
EFFECTIVE DATE. This section is effective January 1, 2025.
125.14
Sec. 75. Minnesota Statutes 2023 Supplement, section 332.74, subdivision 3, is amended
125.15
to read:
125.16
Subd. 3. Relief. (a) If a debtor shows by a preponderance of the evidence that the debtor
125.17
has been aggrieved by a violation of section 332.72 and the debtor has incurred coerced
125.18
debt, the debtor is entitled to one or more of the following:
125.19
(1) a declaratory judgment that the debt or portion of a debt is coerced debt;
125.20
(2) an injunction prohibiting the creditor from (i) holding or attempting to hold the debtor
125.21
liable for the debt or portion of a debt, or (ii) enforcing a judgment related to the coerced
125.22
debt; and
125.23
(3) an order dismissing any cause of action brought by the creditor to enforce or collect
125.24
the coerced debt from the debtor or, if only a portion of the debt is established as coerced
125.25
debt, an order directing that the judgment, if any, in the action be amended to reflect only
125.26
the portion of the debt that is not coerced debt.
125.27
(b) If the court orders relief for the debtor under paragraph (a), the court, after the
125.28
creditor's motion has been personally served on the person who violated section 332.72, or
125.29
if personal service cannot be made, after service by United States mail to the last known
125.30
address of the person who violated section 332.72 and one-week published notice under
125.31
section 645.11, shall must issue a judgment in favor of the creditor against the person in
125.32
the amount of the debt or a portion thereof.
125
Article 3 Sec. 75.
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REVISOR
RSI
126.1
(c) This subdivision applies regardless of the judicial district in which the creditor's
126.2
action or the debtor's petition was filed.
126.3
EFFECTIVE DATE. This section is effective January 1, 2025.
126.4
Sec. 76. Minnesota Statutes 2023 Supplement, section 332.74, subdivision 5, is amended
126.5
to read:
126.6
Subd. 5. Burden. In any affirmative action taken under subdivision 1 or any affirmative
126.7
defense asserted in subdivision 4, the debtor bears the burden to show by a preponderance
126.8
of the evidence that the debtor incurred coerced debt. There is a presumption that the debtor
126.9
has incurred coerced debt if the person alleged to have caused the debtor to incur the coerced
126.10
debt has been criminally convicted, entered a guilty plea, or entered an Alford plea under
126.11
of or received a stay of adjudication for a violation of section 609.27, 609.282, 609.322, or
126.12
609.527.
126.13
EFFECTIVE DATE. This section is effective January 1, 2025.
126.14
Sec. 77. [332C.01] DEFINITIONS.
126.15
Subdivision 1. Application. For purposes of this chapter, the following terms have the
126.16
meanings given.
126.17
Subd. 2. Collecting party. "Collecting party" means a party engaged in collecting
126.18
medical debt. Collecting party does not include parties when complying with a court order
126.19
or statutory obligation to garnish or levy a debtor's property, including banks, credit unions,
126.20
public officers, and garnishees.
126.21
Subd. 3. Debtor. "Debtor" means a person obligated or alleged to be obligated to pay
126.22
any debt.
126.23
Subd. 4. Medical debt. (a) "Medical debt" means debt incurred primarily for medically
126.24
necessary health treatment or services. Medical debt includes debt charged to a credit card
126.25
or other credit instrument, on or after October 1, 2024, under an open-end or closed-end
126.26
credit plan offered specifically to pay for health treatment or services.
126.27
(b) Medical debt does not include:
126.28
(1) debt charged to a credit card or other credit instrument, under an open-end or
126.29
closed-end credit plan, that is not offered specifically to pay for health treatment or services;
126.30
(2) services provided by a veterinarian;
126.31
(3) services provided by a dentist; or
126
Article 3 Sec. 77.
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REVISOR
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127.1
(4) debt charged to a home equity line of credit.
127.2
Subd. 5. Medically necessary. "Medically necessary" has the meaning given in section
127.3
62J.805, subdivision 7.
127.4
Subd. 6. Person. "Person" means any individual, partnership, association, or corporation.
127.5
EFFECTIVE DATE. This section is effective October 1, 2024.
127.6
Sec. 78. [332C.02] PROHIBITED PRACTICES.
127.7
A collecting party must not:
127.8
(1) in a collection letter, publication, invoice, or any oral or written communication,
127.9
threaten wage garnishment or legal suit by a particular lawyer, unless the collecting party
127.10
has actually retained the lawyer to do so;
127.11
(2) use or employ sheriffs or any other officer authorized to serve legal papers in
127.12
connection with collecting a claim, except when performing the sheriff's or other officer's
127.13
legally authorized duties;
127.14
(3) use or threaten to use methods of collection that violate Minnesota law;
127.15
(4) furnish legal advice to debtors or represent that the collecting party is competent or
127.16
able to furnish legal advice to debtors;
127.17
(5) communicate with debtors in a misleading or deceptive manner by falsely using the
127.18
stationery of a lawyer, forms or instruments which only lawyers are authorized to prepare,
127.19
or instruments which simulate the form and appearance of judicial process;
127.20
(6) publish or cause to be published any list of debtors, use shame cards or shame
127.21
automobiles, advertise or threaten to advertise for sale any claim as a means of forcing
127.22
payment of the claim, or use similar devices or methods of intimidation;
127.23
(7) operate under a name or in a manner which falsely implies the collecting party is a
127.24
branch of or associated with any department of federal, state, county, or local government
127.25
or an agency thereof;
127.26
(8) transact business or hold the collecting party out as a debt settlement company, debt
127.27
management company, debt adjuster, or any person who settles, adjusts, prorates, pools,
127.28
liquidates, or pays the indebtedness of a debtor, unless there is no charge to the debtor, or
127.29
the pooling or liquidation is done pursuant to court order or under the supervision of a
127.30
creditor's committee;
127
Article 3 Sec. 78.
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REVISOR
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128.1
(9) unless an exemption in the law exists, violate Code of Federal Regulations, title 12,
128.2
part 1006, while attempting to collect on any account, bill, or other indebtedness. For
128.3
purposes of this section, Public Law 95-109 and Code of Federal Regulations, title 12, part
128.4
1006, apply to collecting parties other than health care providers collecting medical debt in
128.5
the health care provider's own name;
128.6
(10) communicate with a debtor about medical debt by use of an automatic telephone
128.7
dialing system or an artificial or prerecorded voice after the debtor expressly informs the
128.8
collecting party to cease communication utilizing an automatic telephone dialing system or
128.9
an artificial or prerecorded voice. For purposes of this clause, an automatic telephone dialing
128.10
system or an artificial or prerecorded voice includes but is not limited to (i) artificial
128.11
intelligence chat bots, and (ii) the usage of the term under the Telephone Consumer Protection
128.12
Act, United States Code, title 47, section 227(b)(1)(A);
128.13
(11) in collection letters or publications, or in any oral or written communication, imply
128.14
or suggest that medically necessary health treatment or services are denied as a result of a
128.15
medical debt;
128.16
(12) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
128.17
party to request that the debtor contact the collecting party, except a person who resides
128.18
with the debtor or a third party with whom the debtor has authorized with the collecting
128.19
party to place the request. This clause does not apply to a call-back message left at the
128.20
debtor's place of employment which is limited solely to the collecting party's telephone
128.21
number and name;
128.22
(13) when attempting to collect a medical debt, fail to provide the debtor with the full
128.23
name of the collecting party, as registered with the secretary of state;
128.24
(14) fail to return any amount of overpayment from a debtor to the debtor or to the state
128.25
of Minnesota pursuant to the requirements of chapter 345;
128.26
(15) accept currency or coin as payment for a medical debt without issuing an original
128.27
receipt to the debtor and maintaining a duplicate receipt in the debtor's payment records;
128.28
(16) except for court costs for filing a civil action with the court and service of process,
128.29
attempt to collect any interest, fee, charge, or expense incidental to the charge-off obligation
128.30
from a debtor unless the amount is expressly authorized by the agreement creating the
128.31
medical debt or is otherwise permitted by law;
128.32
(17) falsify any documents with the intent to deceive;
128
Article 3 Sec. 78.
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REVISOR
RSI
129.1
(18) when initially contacting a Minnesota debtor by mail to collect a medical debt, fail
129.2
to include a disclosure on the contact notice, in a type size or font which is equal to or larger
129.3
than the largest other type of type size or font used in the text of the notice, that includes
129.4
and identifies the Office of the Minnesota Attorney General's general telephone number,
129.5
and states: "You have the right to hire your own attorney to represent you in this matter.";
129.6
(19) commence legal action to collect a medical debt outside the limitations period set
129.7
forth in section 541.053;
129.8
(20) report to a credit reporting agency any medical debt that the collecting party knows
129.9
or should know is or was originally owed to a health care provider, as defined in section
129.10
62J.805, subdivision 4; or
129.11
(21) challenge a debtor's claim of exemption to garnishment or levy in a manner that is
129.12
baseless, frivolous, or otherwise in bad faith.
129.13
EFFECTIVE DATE. This section is effective October 1, 2024.
129.14
Sec. 79. [332C.03] MEDICAL DEBT REPORTING PROHIBITED.
129.15
(a) A collecting party is prohibited from reporting medical debt to a consumer reporting
129.16
agency.
129.17
(b) A consumer reporting agency is prohibited from making a consumer report containing
129.18
an item of information that the consumer reporting agency knows or should know concerns
129.19
medical debt.
129.20
(c) For purposes of this section, "consumer report" and "consumer reporting agency"
129.21
have the meanings given in the Fair Credit Reporting Act, United States Code, title 15,
129.22
section 1681a.
129.23
(d) This section also applies to collection agencies and debt buyers licensed under chapter
129.24
332.
129.25
EFFECTIVE DATE. This section is effective October 1, 2024.
129.26
Sec. 80. [332C.04] DEFENDING MEDICAL DEBT CASES.
129.27
(a) A debtor who successfully defends against a claim for payment of medical debt that
129.28
is alleged by a collecting party must be awarded the debtor's costs and a reasonable attorney
129.29
fee, as determined by the court, incurred to defend against the collecting party's claim for
129.30
debt payment.
129
Article 3 Sec. 80.
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REVISOR
RSI
130.1
(b) For purposes of this section, a resolution mutually agreed upon by the debtor and
130.2
collecting party is not a successful defense subject to an additional award of an attorney
130.3
fee.
130.4
EFFECTIVE DATE. This section is effective October 1, 2024, for causes of action
130.5
commenced on or after that date.
130.6
Sec. 81. [332C.05] ENFORCEMENT.
130.7
(a) The attorney general may enforce this chapter under section 8.31.
130.8
(b) A collecting party that violates this chapter is strictly liable to the debtor in question
130.9
for the sum of:
130.10
(1) actual damage sustained by the debtor as a result of the violation;
130.11
(2) additional damages as the court may allow, but not exceeding $1,000 per violation;
130.12
and
130.13
(3) in the case of any successful action to enforce the foregoing, the costs of the action,
130.14
together with a reasonable attorney fee as determined by the court.
130.15
(c) A collecting party that willfully and maliciously violates this chapter is strictly liable
130.16
to the debtor for three times the sums allowable under paragraph (b), clauses (1) and (2).
130.17
(d) The dollar amount limit under paragraph (b), clause (2), changes on July 1 of each
130.18
even-numbered year in an amount equal to changes made in the Consumer Price Index,
130.19
compiled by the United States Bureau of Labor Statistics. The Consumer Price Index for
130.20
December 2024 is the reference base index. If the Consumer Price Index is revised, the
130.21
percentage of change made under this section must be calculated on the basis of the revised
130.22
Consumer Price Index. If a Consumer Price Index revision changes the reference base index,
130.23
a revised reference base index must be determined by multiplying the reference base index
130.24
that is effective at the time by the rebasing factor furnished by the Bureau of Labor Statistics.
130.25
(e) If the Consumer Price Index is superseded, the Consumer Price Index referred to in
130.26
this section is the Consumer Price Index represented by the Bureau of Labor Statistics as
130.27
most accurately reflecting changes in the prices paid by consumers for consumer goods and
130.28
services.
130.29
(f) The attorney general must publish the base reference index under paragraph (d) in
130.30
the State Register no later than September 1, 2024. The attorney general must calculate and
130.31
publish the revised Consumer Price Index under paragraph (d) in the State Register no later
130.32
than September 1 each even-numbered year.
130
Article 3 Sec. 81.
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REVISOR
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131.1
(g) A collecting party must not be held liable in any action brought under this section if
131.2
the collecting party shows by a preponderance of evidence that the violation:
131.3
(1) was not intentional and resulted from a bona fide error made notwithstanding the
131.4
maintenance of procedures reasonably adopted to avoid any bona fide error; or
131.5
(2) was the result of inaccurate or incorrect information provided to the collecting party
131.6
by a health care provider as defined in section 62J.805, subdivision 4; a health carrier as
131.7
defined in section 62A.011, subdivision 2; or another collecting party currently or previously
131.8
engaged in collection of the medical debt in question.
131.9
EFFECTIVE DATE. This section is effective October 1, 2024.
131.10
Sec. 82. [513.80] RESIDENTIAL REAL ESTATE SERVICE AGREEMENTS;
131.11
UNFAIR SERVICE AGREEMENTS.
131.12
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
131.13
the meanings given.
131.14
(b) "County recorder" has the meaning given in section 13.045, subdivision 1.
131.15
(c) "Person" means natural persons, corporations both foreign and domestic, trusts,
131.16
partnerships both limited and general, incorporated or unincorporated associations,
131.17
companies, business entities, and any other legal entity or any other group associated in fact
131.18
although not a legal entity or any agent, assignee, heir, employee, representative, or servant
131.19
thereof.
131.20
(d) "Record" or "recording" means placement of a document or instrument in the official
131.21
county public land records.
131.22
(e) "Residential real property" means real property that is located in Minnesota occupied,
131.23
or intended to be occupied, by one to four families as their residence.
131.24
(f) "Service agreement" means a contract under which a person agrees to provide real
131.25
estate broker services as defined in section 82.55, subdivision 19, in connection with the
131.26
purchase or sale of residential real property.
131.27
(g) "Service provider" means an individual or entity that provides services to a person
131.28
pursuant to a service agreement.
131.29
Subd. 2. Unfair service agreements; prohibition. (a) A service agreement subject to
131.30
this section is unfair and prohibited if any part of the agreement provides an exclusive right
131.31
to a service provider for a term in excess of one year after the time the service agreement
131.32
is entered into and:
131
Article 3 Sec. 82.
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3rd Engrossment
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REVISOR
RSI
132.1
(1) purports to run with the land or to be binding on future owners of interests in the real
132.2
property;
132.3
(2) allows for assignment of the right to provide service without notice to and consent
132.4
of the residential real property's owner, including a contract for deed vendee;
132.5
(3) is recorded or purports to create a lien, encumbrance, or other real property security
132.6
interest; or
132.7
(4) contains a provision that purports to automatically renew the agreement upon its
132.8
expiration.
132.9
(b) The following are not unfair service agreements under this section:
132.10
(1) a home warranty or similar product that covers the cost of maintaining a major home
132.11
system or appliance for a fixed period;
132.12
(2) an insurance contract;
132.13
(3) a mortgage loan or a commitment to make or receive a mortgage loan;
132.14
(4) an option or right of refusal to purchase a residential real property;
132.15
(5) a declaration of any covenants, conditions, or restrictions created in the formation
132.16
of a homeowners association, a group of condominium owners, or other common interest
132.17
community or an amendment to the covenants, conditions, or restrictions;
132.18
(6) a maintenance or service agreement entered by a homeowners association in a
132.19
common interest community;
132.20
(7) a security agreement governed by chapter 336 that relates to the sale or rental of
132.21
personal property or fixtures; or
132.22
(8) a contract with a gas, water, sewer, electric, telephone, cable, or other utility service
132.23
provider.
132.24
(c) This section does not impair any lien right granted under Minnesota law or that is
132.25
judicially imposed.
132.26
Subd. 3. Recording prohibited. (a) A person is prohibited from:
132.27
(1) presenting or sending an unfair service agreement or notice or memorandum of an
132.28
unfair service agreement to any county recorder to record; or
132.29
(2) causing an unfair service agreement or notice or memorandum of an unfair service
132.30
agreement to be recorded by a county recorder.
132
Article 3 Sec. 82.
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REVISOR
RSI
133.1
(b) If a county recorder records an unfair service agreement, the county recorder does
133.2
not incur liability.
133.3
(c) If an unfair service agreement is recorded, the recording does not create a lien or
133.4
provide constructive notice to any third party, bona fide purchaser, or creditor.
133.5
Subd. 4. Unfair service agreements unenforceable. A service agreement that is unfair
133.6
under this section is unenforceable and does not create a contractual obligation or relationship.
133.7
Any waiver of a consumer right, including a right to trial by jury, in an unfair service
133.8
agreement is void.
133.9
Subd. 5. Unfair service agreements; solicitation. Encouraging any consumer to enter
133.10
into an unfair service agreement by any service provider constitutes:
133.11
(1) an unfair method of competition; and
133.12
(2) an unfair or deceptive act or practice under section 82.81, subdivision 12, paragraph
133.13
(c), and section 325F.69.
133.14
Subd. 6. Enforcement authority. (a) This section may be enforced by the attorney
133.15
general under section 8.31, except that any private cause of action brought under subdivision
133.16
7 is subject to the limitation under subdivision 7, paragraph (d).
133.17
(b) The commissioner of commerce may enforce this section with respect to a service
133.18
provider's real estate license.
133.19
Subd. 7. Remedies. (a) A consumer that is party to an unfair service agreement related
133.20
to residential real property or a person with an interest in the property that is the subject of
133.21
that agreement may bring an action under section 8.31 or 325F.70 in district court in the
133.22
county where the property is located.
133.23
(b) If an unfair service agreement or a notice or memorandum of an unfair service
133.24
agreement is recorded against any residential real property, any judgment obtained under
133.25
this section, after being certified by the clerk having custody of the unfair service agreement
133.26
or notice or memorandum of the unfair service agreement, may be recorded and indexed
133.27
against the real property encumbered or clouded by the unfair service agreement.
133.28
(c) The remedies provided under this section are not exclusive and do not reduce any
133.29
other rights or remedies a party may have in equity or in law.
133.30
(d) No private action may be brought under this section more than six years after the
133.31
date the term printed in the unfair service agreement expires.
133
Article 3 Sec. 82.
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3rd Engrossment
SF4097
REVISOR
RSI
134.1
Sec. 83. Minnesota Statutes 2022, section 519.05, is amended to read:
134.2
519.05 LIABILITY OF HUSBAND AND WIFE SPOUSES.
134.3
(a) A spouse is not liable to a creditor for any debts of the other spouse. Where husband
134.4
and wife are living together, they shall be jointly and severally liable for necessary medical
134.5
services that have been furnished to either spouse, including any claims arising under section
134.6
246.53, 256B.15, 256D.16, or 261.04, and necessary household articles and supplies furnished
134.7
to and used by the family. Notwithstanding this paragraph, in a proceeding under chapter
134.8
518 the court may apportion such debt between the spouses.
134.9
(b) Either spouse may close a credit card account or other unsecured consumer line of
134.10
credit on which both spouses are contractually liable, by giving written notice to the creditor.
134.11
(c) Nothing in this section prevents a creditor's claim against a decedent's estate.
134.12
EFFECTIVE DATE. This section is effective October 1, 2024.
134.13
Sec. 84. Minnesota Statutes 2022, section 550.37, subdivision 2, is amended to read:
134.14
Subd. 2. Bible and musical instrument Sacred possessions. The family Bible, library,
134.15
and musical instruments Torah, Qur'an, prayer rug, and other religious items in an aggregate
134.16
amount not exceeding $2,000.
134.17
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
134.18
of action commenced on or after that date.
134.19
Sec. 85. Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
134.20
read:
134.21
Subd. 2a. Library. A personal library in an aggregate amount not exceeding $750.
134.22
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
134.23
of action commenced on or after that date.
134.24
Sec. 86. Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
134.25
read:
134.26
Subd. 2b. Musical instruments. Musical instruments in an aggregate amount not
134.27
exceeding $2,000.
134.28
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
134.29
of action commenced on or after that date.
134
Article 3 Sec. 86.
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3rd Engrossment
SF4097
REVISOR
RSI
135.1
Sec. 87. Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
135.2
read:
135.3
Subd. 2c. Family pets. Family pets in an aggregate amount not exceeding $1,000.
135.4
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
135.5
of action commenced on or after that date.
135.6
Sec. 88. Minnesota Statutes 2022, section 550.37, subdivision 4, is amended to read:
135.7
Subd. 4. Personal goods. (a) All wearing apparel, one watch, utensils, and foodstuffs
135.8
of the debtor and the debtor's family.
135.9
(b) Household furniture, household appliances, phonographs, radio and television
135.10
receivers radios, computers, tablets, televisions, printers, cell phones, smart phones, and
135.11
other consumer electronics of the debtor and the debtor's family, not exceeding $11,250 in
135.12
value.
135.13
(c) The debtor's aggregate interest, not exceeding $3,062.50 in value, in wedding rings
135.14
or other religious or culturally recognized symbols of marriage exchanged between the
135.15
debtor and spouse at the time of the marriage and in the debtor's possession jewelry.
135.16
The exemption provided by this subdivision may not be waived except with regard to
135.17
purchase money security interests. Except for a pawnbroker's possessory lien, a nonpurchase
135.18
money security interest in the property exempt under this subdivision is void.
135.19
If a debtor has property of the type which would qualify for the exemption under clause
135.20
(b), of a value in excess of $11,250 an itemized list of the exempt property, together with
135.21
the value of each item listed, shall be attached to the security agreement at the time a security
135.22
interest is taken, and a creditor may take a nonpurchase money security interest in the excess
135.23
over $11,250 by requiring the debtor to select the exemption in writing at the time the loan
135.24
is made.
135.25
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
135.26
of action commenced on or after that date.
135.27
Sec. 89. Minnesota Statutes 2022, section 550.37, subdivision 12a, is amended to read:
135.28
Subd. 12a. Motor vehicles. One of the following: (1) one motor vehicle, to the extent
135.29
of a value not exceeding $5,000 $10,000; or (2) one motor vehicle that is regularly used by
135.30
or for the benefit of a physically disabled person, as defined under section 169.345,
135.31
subdivision 2, to the extent of a value not exceeding $25,000; (3) one motor vehicle, to the
135
Article 3 Sec. 89.
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3rd Engrossment
SF4097
REVISOR
RSI
136.1
extent of a value not exceeding $50,000 $100,000, that has been designed or modified, at
136.2
a cost of not less than $3,750, to accommodate the physical disability making a disabled
136.3
person eligible for a certificate authorized by section 169.345; or (4) one motor vehicle
136.4
reasonably necessary for use in the trade, business, or profession of the debtor, to the extent
136.5
of a value not to exceed $12,500.
136.6
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
136.7
of action commenced on or after that date.
136.8
Sec. 90. Minnesota Statutes 2022, section 550.37, subdivision 14, is amended to read:
136.9
Subd. 14. Public assistance. All government assistance based on need, and the earnings
136.10
or salary of a person who is a recipient of government assistance based on need, shall be
136.11
exempt from all claims of creditors including any contractual setoff or security interest
136.12
asserted by a financial institution. For the purposes of this chapter, government assistance
136.13
based on need includes but is not limited to Minnesota family investment program,;
136.14
Supplemental Security Income,; medical assistance,; MinnesotaCare, payment of Medicare
136.15
part B premiums or receipt of part D extra help,; MFIP diversionary work program,; work
136.16
participation cash benefit,; Minnesota supplemental assistance,; emergency Minnesota
136.17
supplemental assistance,; general assistance,; emergency general assistance,; emergency
136.18
assistance or county crisis funds,; energy or fuel assistance, and; Supplemental Nutrition
136.19
Assistance Program (SNAP); and any federal or state tax credit received by eligible
136.20
low-income taxpayers, including but not limited to the earned income tax credit, the
136.21
Minnesota working family credit, and renter's credit. The salary or earnings of any debtor
136.22
who is or has been an eligible recipient of government assistance based on need, or an
136.23
inmate of a correctional institution shall, upon the debtor's return to private employment or
136.24
farming after having been an eligible recipient of government assistance based on need, or
136.25
an inmate of a correctional institution, be exempt from attachment, garnishment, or levy of
136.26
execution for a period of six months after the debtor's return to employment or farming and
136.27
after all public assistance for which eligibility existed has been terminated. The exemption
136.28
provisions contained in this subdivision also apply for 60 days after deposit in any financial
136.29
institution, whether in a single or joint account. In tracing the funds, the first-in first-out
136.30
method of accounting shall be used. The burden of establishing that funds are exempt rests
136.31
upon the debtor. Agencies distributing government assistance and the correctional institutions
136.32
shall, at the request of creditors, inform them whether or not any debtor has been an eligible
136.33
recipient of government assistance based on need, or an inmate of a correctional institution,
136.34
within the preceding six months.
136
Article 3 Sec. 90.
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3rd Engrossment
SF4097
REVISOR
RSI
137.1
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
137.2
of action commenced on or after that date.
137.3
Sec. 91. Minnesota Statutes 2022, section 550.37, subdivision 22, is amended to read:
137.4
Subd. 22. Rights of action. Rights of action or money received for injuries to the person
137.5
of the debtor or of a relative whether or not resulting in death. Injuries to the person include
137.6
physical, mental, and emotional injuries.
137.7
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
137.8
of action commenced on or after that date.
137.9
Sec. 92. Minnesota Statutes 2022, section 550.37, subdivision 23, is amended to read:
137.10
Subd. 23. Life insurance aggregate interest. The debtor's aggregate interest not to
137.11
exceed in value $10,000 in any accrued dividend dividends or interest under or loan value
137.12
of any unmatured life insurance contract contracts owned by the debtor under which the
137.13
insured is the debtor or an individual of whom the debtor is a dependent.
137.14
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
137.15
of action commenced on or after that date.
137.16
Sec. 93. Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
137.17
read:
137.18
Subd. 27. Household tools and equipment. The debtor's aggregate interest, not to
137.19
exceed $3,000, in household tools and equipment, including but not limited to hand and
137.20
power tools, snow removal equipment, and lawnmowers.
137.21
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
137.22
of action commenced on or after that date.
137.23
Sec. 94. Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
137.24
read:
137.25
Subd. 28. Wild card exemption in bankruptcy. In a bankruptcy, a debtor may exempt
137.26
any property, including funds in a bank account, up to $1,500 in value.
137.27
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to exemptions
137.28
claimed on or after that date.
137
Article 3 Sec. 94.
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REVISOR
RSI
138.1
Sec. 95. Minnesota Statutes 2022, section 550.39, is amended to read:
138.2
550.39 EXEMPTION OF INSURANCE POLICIES.
138.3
The net amount payable to any insured or to any beneficiary under any policy of accident
138.4
or disability insurance or under accident or disability clauses attached to any policy of life
138.5
insurance shall be exempt and free and clear from the claims of all creditors of such insured
138.6
or such beneficiary and from all legal and judicial processes of execution, attachment,
138.7
garnishment, or otherwise, up to a total amount of $1,000,000 per claim and subsequent
138.8
award.
138.9
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
138.10
of action commenced on or after that date.
138.11
Sec. 96. Minnesota Statutes 2022, section 571.72, subdivision 6, is amended to read:
138.12
Subd. 6. Bad faith claim. If, in a proceeding brought under subdivision 9, section 571.91,
138.13
or a similar proceeding under this chapter to determine a claim of exemption, the claim of
138.14
exemption is not upheld, and the court finds that it was asserted in bad faith, the creditor
138.15
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
138.16
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
138.17
the court finds that the creditor disregarded the claim of exemption in bad faith, the debtor
138.18
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
138.19
proceedings, and an amount not to exceed $100. The underlying judgment shall be modified
138.20
to reflect assessment of damages, costs, and attorney fees. However, if the party in whose
138.21
favor a penalty assessment is made is not actually indebted to that party's attorney for fees,
138.22
the attorney's fee award shall be made directly to the attorney and if not paid an appropriate
138.23
judgment in favor of the attorney shall be entered.
138.24
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
138.25
of action commenced on or after that date.
138.26
Sec. 97. Minnesota Statutes 2022, section 571.72, subdivision 9, is amended to read:
138.27
Subd. 9. Motion to determine objections. (a) This subdivision applies to all garnishment
138.28
proceedings governed by this chapter. An objection regarding a garnishment must be
138.29
interposed as provided in section 571.914, subdivision 1, in the form provided under section
138.30
571.914, subdivision 2.
138
Article 3 Sec. 97.
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REVISOR
RSI
139.1
(b) Upon motion of any party in interest, on notice, the court shall determine the validity
139.2
of any claim of exemption and may make any order necessary to protect the rights of those
139.3
interested.
139.4
(c) Upon receipt of a claim of exemption by the debtor, the creditor must, within six
139.5
business days of the receipt of the exemption claim, either return any of the debtor's funds
139.6
released by the garnishee and held by the creditor or interpose an objection. An objection
139.7
must be interposed by:
139.8
(1) in the district court that issued the judgment, filing the Notice of Objection and
139.9
requesting a hearing; and
139.10
(2) mailing or delivering one copy of the Notice of Objection and Notice of Hearing to
139.11
the garnishee and one copy of the Notice of Objection and Notice of Hearing to the debtor.
139.12
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
139.13
of action commenced on or after that date.
139.14
Sec. 98. Minnesota Statutes 2022, section 571.914, subdivision 1, is amended to read:
139.15
Subdivision 1. Objections and request for hearing. An objection shall be interposed,
139.16
within six business days of receipt by the creditor of an exemption claim from the debtor,
139.17
by mailing or delivering one copy of the Notice of Objection and Notice of Hearing to the
139.18
financial institution and one copy of the Notice of Objection and Notice of Hearing to the
139.19
debtor.
139.20
(a) The Notice of Objection and Notice of Hearing form must be substantially in the
139.21
form set out in subdivision 2.
139.22
(b) The court administrator may charge a fee of $1 for the filing of a Notice of Objection
139.23
and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, the
139.24
court administrator shall schedule the matter for hearing no sooner than five business days
139.25
but no later than seven business days from the date of filing. A debtor may request
139.26
continuance of the hearing by notifying the creditor and the court. The court shall schedule
139.27
the continued hearing within seven days of the original hearing date.
139.28
(c) An order stating whether the debtor's funds are exempt shall be issued by the court
139.29
within three days of the date of the hearing.
139.30
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
139.31
of action commenced on or after that date.
139
Article 3 Sec. 98.
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REVISOR
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140.1
Sec. 99. Minnesota Statutes 2022, section 571.92, is amended to read:
140.2
571.92 GARNISHMENT OF EARNINGS.
140.3
Sections 571.921 to 571.926 relate to the garnishment of earnings. The exemptions
140.4
available under section 550.37 apply to the garnishment of earnings if the debtor is a resident
140.5
of Minnesota and the debtor's place of employment is in Minnesota, regardless of where
140.6
the employer is domiciled. For the purposes of this section, "place of employment" means
140.7
the location where an employee earns wages.
140.8
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
140.9
of action commenced on or after that date.
140.10
Sec. 100. Minnesota Statutes 2022, section 571.921, is amended to read:
140.11
571.921 DEFINITIONS.
140.12
For purposes of sections 571.921 to 571.926 571.927, the following terms have the
140.13
meanings given them:
140.14
(a) "Earnings" means:
140.15
(1) compensation paid or payable to an employee, independent contractor, or
140.16
self-employed person for personal service whether denominated as wages, salary,
140.17
commissions, bonus, payments, profit-sharing distribution, severance payment, fees, or
140.18
otherwise, and includes periodic payments pursuant to a pension or retirement program;
140.19
(2) compensation paid or payable to the producer for the sale of agricultural products;
140.20
livestock or livestock products; milk or milk products; or fruit or other horticultural products
140.21
produced when the producer is operating a family farm, a family farm corporation, or an
140.22
authorized farm corporation, as defined in section 500.24, subdivision 2; or
140.23
(3) maintenance as defined in section 518.003, subdivision 3a.
140.24
(b) "Disposable earnings" means that part of the earnings of an individual remaining
140.25
after the deduction from those earnings of amounts required by law to be withheld.
140.26
(c) "Employee" means an individual who performs services subject to the right of the
140.27
employer to control both what is done and how it is done., whether currently or formerly
140.28
employed, who is owed earnings and who is treated by an employer as an employee for
140.29
federal employment tax purposes.
140.30
(d) "Employer" means a person for whom an individual performs services as an employee
140.31
who owes or will owe earnings to an employee or independent contractor.
140
Article 3 Sec. 100.
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REVISOR
RSI
141.1
(e) "Independent contractor" means an individual who (1) receives or is owed earnings
141.2
from an employer through periodic payments, and (2) is not treated by the employer as an
141.3
employee for federal employment tax purposes.
141.4
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
141.5
of action commenced on or after that date.
141.6
Sec. 101. Minnesota Statutes 2022, section 571.922, is amended to read:
141.7
571.922 LIMITATION ON WAGE GARNISHMENT.
141.8
(a) Unless the judgment is for child support, the maximum part of the aggregate
141.9
disposable earnings of an individual for any pay period subjected to garnishment may not
141.10
exceed the lesser of:
141.11
(1) 25 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
141.12
80 times the greater of the hourly wage described in paragraph (b); or
141.13
(2) 15 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
141.14
60 times, but is less than or equal to 80 times, the greater of the hourly wages described in
141.15
paragraph (b); or
141.16
(3) ten percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
141.17
40 times, but is less than or equal to 60 times, the greater of the hourly wages described in
141.18
paragraph (b).
141.19
(b) The amount by which the debtor's disposable earnings exceed the greater of:
141.20
(i) 40 times the hourly wage described in section 177.24, subdivision 1, paragraph (b),
141.21
clause (1), item (iii); or
141.22
(ii) 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the Fair
141.23
Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The calculation
141.24
of the amount that is subject to garnishment must be based on the hourly wage in effect at
141.25
the time the earnings are payable, times the number of work weeks in the pay period. When
141.26
a pay period consists of other than a whole number of work weeks, each day of that pay
141.27
period in excess of the number of completed work weeks shall be counted as a fraction of
141.28
a work week equal to the number of excess workdays divided by the number of days in the
141.29
normal work week.
141.30
(b) (c) If the judgment is for child support, the garnishment may not exceed:
141
Article 3 Sec. 101.
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REVISOR
RSI
142.1
(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
142.2
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
142.3
to be calculated to the beginning of the work week in which the execution levy is received);
142.4
(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
142.5
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
142.6
to be calculated to the beginning of the work week in which the garnishment summons is
142.7
received);
142.8
(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
142.9
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
142.10
to be calculated to the beginning of the work week in which the execution levy is received);
142.11
or
142.12
(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
142.13
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
142.14
to be calculated to the beginning of the work week in which the garnishment summons is
142.15
received).
142.16
Wage garnishments on judgments for child support are effective until the judgments are
142.17
satisfied if the judgment creditor is a county and the employer is notified by the county
142.18
when the judgment is satisfied.
142.19
(c) (d) No court may make, execute, or enforce an order or any process in violation of
142.20
this section.
142.21
EFFECTIVE DATE. This section is effective April 1, 2025, and applies to causes of
142.22
action commenced on or after that date.
142.23
Sec. 102. Minnesota Statutes 2022, section 571.927, is amended to read:
142.24
571.927 PENALTY FOR RETALIATION FOR GARNISHMENT.
142.25
Subdivision 1. Prohibition. An employer shall not discharge or otherwise discipline an
142.26
employee or independent contractor as a result of an earnings garnishment authorized by
142.27
this chapter.
142.28
Subd. 2. Remedy. If an employer violates this section, a court may order the reinstatement
142.29
of an aggrieved party who demonstrates a violation of this section, and other relief the court
142.30
considers appropriate. The aggrieved party may bring a civil action within 90 days of the
142.31
date of the prohibited action. If an employer-employee or employer-independent contractor
142
Article 3 Sec. 102.
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3rd Engrossment
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REVISOR
RSI
143.1
relationship existed before the violation of this section, the employee or independent
143.2
contractor shall recover twice the wages earnings lost as a result of this violation.
143.3
Subd. 3. Nonwaiver. The rights guaranteed by this section may not be waived or altered
143.4
by employment contract.
143.5
EFFECTIVE DATE. This section is effective August 1, 2024, and applies to causes
143.6
of action commenced on or after that date.
143.7
Sec. 103. GARNISHMENT FORMS REVISION.
143.8
(a) The attorney general must review and make recommendations to revise into plain
143.9
language, and ensure comportment with the law, the notices and forms found in Minnesota
143.10
Statutes, sections 571.72, subdivisions 8 and 10; 571.74; 571.75, subdivision 2; 571.912;
143.11
and 571.925.
143.12
(b) The attorney general must review and determine whether the forms contained in
143.13
Minnesota Statutes, sections 571.711; 571.914, subdivision 2; 571.931, subdivision 6; and
143.14
571.932, subdivision 2, should be revised (1) into a more easily readable and understandable
143.15
format, and (2) to ensure comportment with law. If the attorney general determines the
143.16
forms should be revised, the attorney general must make recommendations for legislative
143.17
revisions to the forms.
143.18
(c) The recommendations made under paragraphs (a) and (b) must include proposals to
143.19
(1) explain in simple terms the meaning of garnishment in any form that uses the term
143.20
garnishment, and (2) prominently place on forms the name, telephone number, and email
143.21
address of the creditor.
143.22
(d) When developing the recommendations, the attorney general must consult with the
143.23
Center for Plain Language and other plain language experts the attorney general may identify,
143.24
and must obtain approval from affected business and consumer groups, including but not
143.25
limited to:
143.26
(1) the Minnesota Creditors' Rights Association;
143.27
(2) the Great Lakes Credit and Collections Association;
143.28
(3) the Minnesota Bankers' Association;
143.29
(4) the Minnesota Credit Union Network;
143.30
(5) BankIn Minnesota;
143.31
(6) Mid-Minnesota Legal Aid;
143
Article 3 Sec. 103.
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3rd Engrossment
SF4097
REVISOR
RSI
144.1
(7) the Minnesota chapter of the National Association of Consumer Advocates;
144.2
(8) the Minnesota chapter of the National Association of Consumer Bankruptcy Attorneys;
144.3
(9) Lutheran Social Services; and
144.4
(10) Family Means.
144.5
(e) For the purposes of this section, "plain language" means communication in which
144.6
the wording, structure, and design are so clear that the intended reader can easily: (1) find
144.7
what the reader needs; (2) understand what the reader needs; and (3) use what the reader
144.8
finds to meet the reader's needs.
144.9
EFFECTIVE DATE. This section is effective August 1, 2024.
144.10
Sec. 104. REPEALER.
144.11
(a) Minnesota Statutes 2022, sections 45.014; 82B.25; 239.791, subdivision 3; and
144.12
325G.25, subdivision 1a, are repealed.
144.13
(b) Minnesota Statutes 2023 Supplement, sections 53B.58; and 332.71, subdivision 8,
144.14
are repealed.
144.15
(c) Minnesota Statutes 2022, section 82B.25, is repealed.
144.16
EFFECTIVE DATE. Paragraph (c) is effective January 1, 2026.
144.17
ARTICLE 4
144.18
TELECOMMUNICATIONS POLICY
144.19
Section 1. Minnesota Statutes 2022, section 237.121, is amended to read:
144.20
237.121 PROHIBITED PRACTICES.
144.21
(a) A telephone company or telecommunications carrier may not do any of the following
144.22
with respect to services regulated by the commission:
144.23
(1) upon request, fail to disclose in a timely and uniform manner information necessary
144.24
for the design of equipment and services that will meet the specifications for interconnection;
144.25
(2) intentionally impair the speed, quality, or efficiency of services, products, or facilities
144.26
offered to a consumer under a tariff, contract, or price list;
144.27
(3) fail to provide a service, product, or facility to a consumer other than a telephone
144.28
company or telecommunications carrier in accordance with its applicable tariffs, price lists,
144.29
or contracts and with the commission's rules and orders;
144
Article 4 Section 1.
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REVISOR
RSI
145.1
(4) refuse to provide a service, product, or facility to a telephone company or
145.2
telecommunications carrier in accordance with its applicable tariffs, price lists, or contracts
145.3
and with the commission's rules and orders;
145.4
(5) impose unreasonable or discriminatory restrictions on the resale of its services,
145.5
provided that:
145.6
(i) it may require that residential service may not be resold as a different class of service;
145.7
and
145.8
(ii) the commission may prohibit resale of services it has approved for provision for
145.9
not-for-profit entities at rates less than those offered to the general public; or
145.10
(6) provide telephone service to a person acting as a telephone company or
145.11
telecommunications carrier if the commission has ordered the telephone company or
145.12
telecommunications carrier to discontinue service to that person.; or
145.13
(7) upon cancellation of telecommunications service, refuse to provide a prorated refund
145.14
of payment made in advance by a customer.
145.15
(b) A telephone company or telecommunications carrier may not violate a provision of
145.16
sections 325F.692 and 325F.693, with regard to any of the services provided by the company
145.17
or carrier.
145.18
Sec. 2. Minnesota Statutes 2022, section 237.19, is amended to read:
145.19
237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.
145.20
(a) Any municipality shall have the right to own and operate a telephone exchange within
145.21
its own borders, subject to the provisions of this chapter. It may construct such plant, or
145.22
purchase an existing plant by agreement with the owner, or where it cannot agree with the
145.23
owner on price, it may acquire an existing plant by condemnation, as hereinafter provided,
145.24
but in no case shall a municipality construct or purchase such a plant or proceed to acquire
145.25
an existing plant by condemnation until such action by it is authorized by a majority of the
145.26
electors voting upon the proposition at a general election or a special election called for that
145.27
purpose, and if the proposal is to construct a new exchange where an exchange already
145.28
exists, it shall not be authorized to do so unless 65 percent of those voting thereon vote in
145.29
favor of the undertaking.
145.30
(b) A municipality that owns and operates a telephone exchange may enter into a joint
145.31
venture as a partner or shareholder with a telecommunications organization to provide
145.32
telecommunications services within its service area.
145
Article 4 Sec. 2.
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3rd Engrossment
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REVISOR
RSI
146.1
(c) A municipality may acquire an existing plant through condemnation only if:
146.2
(1) a provider of telephone service ceases to offer telephone service and no other provider
146.3
offering telephone service is available; and
146.4
(2) absent a condemnation process under this section, public safety would be negatively
146.5
impacted or 911 service would become unreliable, as determined by the commission.
146.6
(d) A municipality is prohibited from using the municipality's condemnation authority
146.7
under this section to intervene in the transfer or sale of a telecommunications service
146.8
provider's assets.
146.9
(e) A condemnation process undertaken under this section must apply to all customers
146.10
within the existing telephone exchange.
146.11
Sec. 3. [325F.6945] INTERNET SERVICE PROVIDERS; PROHIBITED ACTIONS.
146.12
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
146.13
the meanings given.
146.14
(b) "Broadband Internet access service" means:
146.15
(1) a mass-market retail service by wire or radio that provides the capability, including
146.16
any capability that is incidental to and enables the operation of the communications service,
146.17
to transmit data to and receive data from all or substantially all Internet endpoints;
146.18
(2) any service that provides a functional equivalent of the service described in clause
146.19
(1); or
146.20
(3) any service that is used to evade the protections established under this section.
146.21
Broadband Internet access service includes a service that serves end users at fixed endpoints
146.22
using stationary equipment or end users using mobile stations, but does not include dial-up
146.23
Internet access service.
146.24
(c) "Edge provider" means any person or entity that provides:
146.25
(1) any content, application, or service over the Internet; or
146.26
(2) a device used to access any content, application, or service over the Internet.
146.27
Edge provider does not include a person or entity providing obscene material, as defined
146.28
in section 617.241.
146
Article 4 Sec. 3.
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REVISOR
RSI
147.1
(d) "Impairing or degrading lawful Internet traffic on the basis of Internet content,
147.2
application, or service, or use of a nonharmful device" means impairing or degrading any
147.3
of the following:
147.4
(1) particular content, applications, or services;
147.5
(2) particular classes of content, applications, or services;
147.6
(3) lawful Internet traffic to particular nonharmful devices; or
147.7
(4) lawful Internet traffic to particular classes of nonharmful devices.
147.8
Impairing or degrading lawful Internet traffic on the basis of Internet content, application,
147.9
or service, or use of a nonharmful device includes, without limitation, differentiating
147.10
positively or negatively between any of the following:
147.11
(i) particular content, applications, or services;
147.12
(ii) particular classes of content, applications, or services;
147.13
(iii) lawful Internet traffic to particular nonharmful devices; or
147.14
(iv) lawful Internet traffic to particular classes of nonharmful devices.
147.15
(e) "Internet service provider" means a business that provides broadband Internet access
147.16
service to a customer in Minnesota.
147.17
(f) "Paid prioritization" means the management of an Internet service provider's network
147.18
to directly or indirectly favor some traffic over other traffic:
147.19
(1) in exchange for monetary or other consideration from a third party; or
147.20
(2) to benefit an affiliated entity.
147.21
(g) "Reasonable network management" means a network management practice that has
147.22
a primarily technical network-management justification, but does not include other business
147.23
practices, which is reasonable if the practice is primarily used for and tailored to achieving
147.24
a legitimate network-management purpose, taking into account the particular network
147.25
architecture and technology of the broadband Internet access service.
147.26
(h) "Zero-rating" means exempting some Internet traffic from a customer's data usage
147.27
allowance.
147.28
Subd. 2. Prohibited actions. An Internet service provider is prohibited from engaging
147.29
in any of the following activities with respect to any of the Internet service provider's
147.30
Minnesota customers:
147
Article 4 Sec. 3.
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REVISOR
RSI
148.1
(1) subject to reasonable network management, blocking lawful content, applications,
148.2
services, or nonharmful devices;
148.3
(2) subject to reasonable network management, impairing, impeding, or degrading lawful
148.4
Internet traffic on the basis of (i) Internet content, application, or service, or (ii) use of a
148.5
nonharmful device;
148.6
(3) engaging in paid prioritization;
148.7
(4) unreasonably interfering with or unreasonably disadvantaging:
148.8
(i) a customer's ability to select, access, and use broadband Internet service or lawful
148.9
Internet content, applications, services, or devices of the customer's choice; or
148.10
(ii) an edge provider's ability to provide lawful Internet content, applications, services,
148.11
or devices to a customer.
148.12
Reasonable network management is not a violation of this clause;
148.13
(5) engaging in deceptive or misleading marketing practices that misrepresent the
148.14
treatment of Internet traffic or content;
148.15
(6) engaging in zero-rating in exchange for consideration, monetary or otherwise, from
148.16
a third party; or
148.17
(7) zero-rating some Internet content, applications, services, or devices in a category of
148.18
Internet content, applications, services, or devices, but not the entire category.
148.19
Subd. 3. Exceptions. This section does not apply to software or applications sponsored
148.20
by the federal government, a state government, or a federally recognized Tribal government
148.21
when the Internet service provider allows an advantage to customers for free or improved
148.22
access, or data for access to government services and programs.
148.23
Subd. 4. Other laws. This section does not: (1) supersede any obligation or authorization
148.24
an Internet service provider may have to address the needs of emergency communications
148.25
or law enforcement, public safety, or national security authorities, consistent with or as
148.26
permitted by applicable law; or (2) limit the provider's ability to meet, address, or comply
148.27
with the needs identified in clause (1).
148.28
Subd. 5. Enforcement. A violation of subdivision 2 may be enforced by the commissioner
148.29
of commerce under section 45.027. The venue for enforcement proceedings is Ramsey
148.30
County.
148.31
EFFECTIVE DATE. This section is effective July 1, 2025.
148
Article 4 Sec. 3.
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REVISOR
RSI
149.1
Sec. 4. Minnesota Statutes 2022, section 429.021, subdivision 1, is amended to read:
149.2
Subdivision 1. Improvements authorized. The council of a municipality shall have
149.3
power to make the following improvements:
149.4
(1) To acquire, open, and widen any street, and to improve the same by constructing,
149.5
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
149.6
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
149.7
including the beautification thereof and including storm sewers or other street drainage and
149.8
connections from sewer, water, or similar mains to curb lines.
149.9
(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
149.10
sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,
149.11
lift stations, service connections, and other appurtenances of a sewer system, within and
149.12
without the corporate limits.
149.13
(3) To construct, reconstruct, extend, and maintain steam heating mains.
149.14
(4) To install, replace, extend, and maintain street lights and street lighting systems and
149.15
special lighting systems.
149.16
(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
149.17
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
149.18
treatment plants, and other appurtenances of a water works system, within and without the
149.19
corporate limits.
149.20
(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
149.21
facilities within or without the corporate limits.
149.22
(7) To plant trees on streets and provide for their trimming, care, and removal.
149.23
(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
149.24
property and to fill the same.
149.25
(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
149.26
(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
149.27
(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
149.28
promote a pedestrian skyway system. Such improvement may be made upon a petition
149.29
pursuant to section 429.031, subdivision 3.
149.30
(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
149.31
underground pedestrian concourses.
149
Article 4 Sec. 4.
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REVISOR
RSI
150.1
(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
150.2
malls, plazas or courtyards.
150.3
(14) To construct, reconstruct, extend, and maintain district heating systems.
150.4
(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
150.5
systems in existing buildings, but only upon a petition pursuant to section 429.031,
150.6
subdivision 3.
150.7
(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
150.8
sound barriers.
150.9
(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
150.10
facilities owned by a municipal gas or electric utility.
150.11
(18) To purchase, install, and maintain signs, posts, and other markers for addressing
150.12
related to the operation of enhanced 911 telephone service.
150.13
(19) To improve, construct, extend, and maintain facilities for Internet access and other
150.14
communications purposes, if the council finds that: provided that the municipality must:
150.15
(i) the facilities are necessary to make available Internet access or other communications
150.16
services that are not and will not be available through other providers or the private market
150.17
in the reasonably foreseeable future; and
150.18
(ii) the service to be provided by the facilities will not compete with service provided
150.19
by private entities.
150.20
(i) not discriminate in favor of the municipality's own communications facilities by
150.21
granting the municipality more favorable or less burdensome terms and conditions than a
150.22
nonmunicipal service provider with respect to: (A) access and use of public rights-of-way;
150.23
(B) access and use of municipally owned or controlled conduit, towers, and utility poles;
150.24
and (C) permitting fees charged to access municipally owned and managed facilities;
150.25
(ii) maintain separation between the municipality's role as a regulator over firms that
150.26
offer services in competition with the services offered by the municipality over the
150.27
municipality's communications service facilities, and the municipality's role as a competitive
150.28
provider of services over the municipality's communications service facilities; and
150.29
(iii) not share inside information between employees or contractors responsible for
150.30
executing the municipality's role as a regulator over firms that offer communications services
150.31
in competition with the communication services offered by the municipality, and employees
150
Article 4 Sec. 4.
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3rd Engrossment
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REVISOR
RSI
151.1
or contractors responsible for executing the municipality's role as a competitive
151.2
communications services provider.
151.3
(20) To assess affected property owners for all or a portion of the costs agreed to with
151.4
an electric utility, telecommunications carrier, or cable system operator to bury or alter a
151.5
new or existing distribution system within the public right-of-way that exceeds the utility's
151.6
design and construction standards, or those set by law, tariff, or franchise, but only upon
151.7
petition under section 429.031, subdivision 3.
151.8
(21) To assess affected property owners for repayment of voluntary energy improvement
151.9
financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.
151.10
(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy
151.11
improvement projects in existing buildings, provided that:
151.12
(i) a petition for the improvement is made by a property owner under section 429.031,
151.13
subdivision 3;
151.14
(ii) the municipality funds and administers the energy improvement project;
151.15
(iii) project funds are only used for the installation of improvements to heating,
151.16
ventilation, and air conditioning equipment and building envelope and for the installation
151.17
of renewable energy systems;
151.18
(iv) each property owner petitioning for the improvement receives notice that free or
151.19
low-cost energy improvements may be available under federal, state, or utility programs;
151.20
(v) for energy improvement projects on residential property, only residential property
151.21
having five or more units may obtain financing for projects under this clause; and
151.22
(vi) prior to financing an energy improvement project or imposing an assessment for a
151.23
project, written notice is provided to the mortgage lender of any mortgage encumbering or
151.24
otherwise secured by the property proposed to be improved.
151.25
ARTICLE 5
151.26
LIQUOR
151.27
Section 1. Minnesota Statutes 2022, section 340A.101, subdivision 13, is amended to
151.28
read:
151.29
Subd. 13. Hotel. "Hotel" is an establishment where food and lodging are regularly
151.30
furnished to transients and which has:
151
Article 5 Section 1.
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3rd Engrossment
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REVISOR
RSI
152.1
(1) a dining room serving the general public at tables and having facilities for seating
152.2
at least 30 guests at one time; and or
152.3
(2) guest rooms in the following minimum numbers: in first class cities, 50; in second
152.4
class cities, 25 15; in all other cities and unincorporated areas, 10.
152.5
Sec. 2. Minnesota Statutes 2022, section 340A.404, subdivision 1, is amended to read:
152.6
Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to the
152.7
following establishments located within its jurisdiction:
152.8
(1) hotels;
152.9
(2) restaurants;
152.10
(3) bowling centers;
152.11
(4) clubs or congressionally chartered veterans organizations with the approval of the
152.12
commissioner, provided that the organization has been in existence for at least three years
152.13
and liquor sales will only be to members and bona fide guests, except that a club may permit
152.14
the general public to participate in a wine tasting conducted at the club under section
152.15
340A.419;
152.16
(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the
152.17
Minnesota Sports Facilities Authority;
152.18
(6) sports facilities located on land owned by the Metropolitan Sports Commission;
152.19
(7) exclusive liquor stores; and
152.20
(8) resorts as defined in section 157.15, subdivision 11.
152.21
(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
152.22
an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
152.23
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
152.24
all days of the week to persons attending events at the theater.
152.25
(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
152.26
an on-sale malt liquor license to a convention center within the city, notwithstanding any
152.27
law, local ordinance, or charter provision. A license issued under this paragraph authorizes
152.28
sales on all days of the week to persons attending events at the convention center. This
152.29
paragraph does not apply to convention centers located in the seven-county metropolitan
152.30
area.
152
Article 5 Sec. 2.
S4097-3
3rd Engrossment
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REVISOR
RSI
153.1
(d) A municipality may issue an on-sale wine license and an on-sale malt liquor license
153.2
to a person who is the owner of a summer collegiate league baseball team or baseball team
153.3
competing in a league established by the Minnesota Baseball Association, or to a person
153.4
holding a concessions or management contract with the owner, for beverage sales at a
153.5
ballpark or stadium located within the municipality for the purposes of summer collegiate
153.6
league baseball games, town ball games, and any other events at the ballpark or stadium,
153.7
notwithstanding any law, local ordinance, or charter provision. A license issued under this
153.8
paragraph authorizes sales on all days of the week to persons attending baseball games and
153.9
any other events at the ballpark or stadium.
153.10
(e) A municipality may issue an on-sale malt liquor license to a resort as defined in
153.11
section 157.15, subdivision 11, notwithstanding any law, local ordinance, or charter provision.
153.12
A license issued under this paragraph authorizes sales on all days of the week to persons
153.13
staying at the resort and their guests.
153.14
Sec. 3. Minnesota Statutes 2022, section 340A.404, subdivision 2, is amended to read:
153.15
Subd. 2. Special provision; city of Minneapolis. (a) The city of Minneapolis may issue
153.16
an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the
153.17
Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding
153.18
the limitations of law, or local ordinance, or charter provision relating to zoning or school
153.19
or church distances. The licenses authorize sales on all days of the week to holders of tickets
153.20
for performances presented by the theaters and to members of the nonprofit corporations
153.21
holding the licenses and to their guests.
153.22
(b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland
153.23
Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510
153.24
Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter
153.25
provision.
153.26
(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah
153.27
Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue
153.28
South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter
153.29
provision relating to zoning or school or church distances.
153.30
(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
153.31
American Association of University Women, Minneapolis branch, for use on the premises
153.32
owned by the American Association of University Women, Minneapolis branch, at 2115
153.33
Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local
153.34
ordinances, or charter provisions relating to zoning or school or church distances.
153
Article 5 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
154.1
(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent
154.2
malt liquor license to a restaurant located at 5000 Penn Avenue South, and an on-sale wine
154.3
license and an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue
154.4
South, notwithstanding any law or local ordinance or charter provision.
154.5
(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
154.6
license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue South, the
154.7
Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the
154.8
Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located
154.9
at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 Lyndale Avenue South,
154.10
Brave New Institute located at 2605 Hennepin Avenue South, the Guthrie Lab located at
154.11
700 North First Street, and the Southern Theatre located at 1420 Washington Avenue South,
154.12
notwithstanding any law or local ordinance or charter provision. The license authorizes
154.13
sales on all days of the week.
154.14
(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to University
154.15
Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant or catering
154.16
operator at the building owned and operated by the University Gateway Corporation on the
154.17
University of Minnesota campus, notwithstanding limitations of law, or local ordinance or
154.18
charter provision. The license authorizes sales on all days of the week.
154.19
(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Walker
154.20
Art Center's concessionaire or operator, for a restaurant and catering operator on the premises
154.21
of the Walker Art Center, notwithstanding limitations of law, or local ordinance or charter
154.22
provisions. The license authorizes sales on all days of the week.
154.23
(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie
154.24
Theater's concessionaire or operator for a restaurant and catering operator on the premises
154.25
of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or charter
154.26
provisions. The license authorizes sales on all days of the week.
154.27
(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor
154.28
license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or operator
154.29
for a restaurant and catering operator on the premises of the Minnesota Book and Literary
154.30
Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local ordinance
154.31
or charter provision. The license authorizes sales on all days of the week.
154.32
(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant
154.33
located at 5411 Penn Avenue South, notwithstanding any law or local ordinance or charter
154.34
provision.
154
Article 5 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
155.1
(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Museum
155.2
of Russian Art's concessionaire or operator for a restaurant and catering operator on the
155.3
premises of the Museum of Russian Art located at 5500 Stevens Avenue South,
155.4
notwithstanding any law or local ordinance or charter provision.
155.5
(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
155.6
American Swedish Institute or to its concessionaire or operator for use on the premises
155.7
owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding
155.8
limitations of law, or local ordinances, or charter provision relating to zoning or school or
155.9
church distances.
155.10
(n) Notwithstanding any other law, local ordinance, or charter provision, the city of
155.11
Minneapolis may issue one or more on-sale intoxicating liquor licenses to the Minneapolis
155.12
Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity holding a concessions
155.13
or catering contract with the Minneapolis Institute of Arts for use on the premises of the
155.14
Minneapolis Institute of Arts. The licenses authorized by this subdivision may be issued
155.15
for space that is not compact and contiguous, provided that all such space is included in the
155.16
description of the licensed premises on the approved license application. The licenses
155.17
authorize sales on all days of the week.
155.18
(o) The city of Minneapolis may issue an on-sale intoxicating liquor license to Norway
155.19
House or to its concessionaire or operator for use on the premises owned by Norway House
155.20
at 913 East Franklin Avenue, notwithstanding limitations of law, or local ordinances, or
155.21
charter provision relating to zoning or school or church distances.
155.22
(p) Notwithstanding any other law, including section 340A.504, subdivision 3, relating
155.23
to seating requirements, local ordinance, or charter provision, the city of Minneapolis may
155.24
issue one or more on-sale intoxicating liquor licenses to any entity holding a concessions
155.25
or catering contract with the Minneapolis Park and Recreation Board for use on the
155.26
Minneapolis Park and Recreation Board premises of the Downtown Commons Park, the
155.27
Minneapolis Sculpture Garden, or at Boom Island Park. The licenses authorized by this
155.28
subdivision may be used for space specified within the park property, provided all such
155.29
space is included in the description of the licensed premises on the approved license
155.30
application. The licenses authorize sales on the dates on the approved license application.
155.31
EFFECTIVE DATE. This section is effective upon approval by the Minneapolis City
155.32
Council and compliance with Minnesota Statutes, section 645.021.
155
Article 5 Sec. 3.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
156.1
Sec. 4. Minnesota Statutes 2022, section 340A.404, subdivision 6, is amended to read:
156.2
Subd. 6. Counties. (a) A county board may issue an annual on-sale intoxicating liquor
156.3
license within the area of the county that is unorganized or unincorporated to a bowling
156.4
center, restaurant, club, hotel, or resort as defined in section 157.15, subdivision 11, with
156.5
the approval of the commissioner.
156.6
(b) A county board may also with the approval of the commissioner issue up to ten
156.7
seasonal on-sale licenses to restaurants and clubs for the sale of intoxicating liquor within
156.8
the area of the county that is unorganized or unincorporated. Notwithstanding section
156.9
340A.412, subdivision 8, a seasonal license is valid for a period specified by the board, not
156.10
to exceed nine months. Not more than one license may be issued for any one premises
156.11
during any consecutive 12-month period.
156.12
(c) A county board may issue an annual on-sale malt liquor license to a resort as defined
156.13
in section 157.15, subdivision 11, within the area of the county that is unorganized or
156.14
unincorporated, notwithstanding any law or local ordinance. A license issued under this
156.15
paragraph authorizes sales on all days of the week to persons staying at the resort and their
156.16
guests.
156.17
Sec. 5. Laws 2022, chapter 86, article 2, section 3, is amended to read:
156.18
Sec. 3. CITY OF ST. PAUL; LICENSE AUTHORIZED.
156.19
Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St.
156.20
Paul may issue a temporary on-sale malt liquor license to the Thai Cultural Council of
156.21
Minnesota or to a person or entity holding a concessions contract with the Thai Cultural
156.22
Council of Minnesota. The license may authorize the sale of malt liquor on the grounds of
156.23
the State Capitol for both days of the Minnesota Songkran Festival. All provisions of
156.24
Minnesota Statutes, section 340A.404, subdivision 10, not inconsistent with this section,
156.25
apply to the license authorized by this section.
156.26
EFFECTIVE DATE. This section is effective upon approval by the St. Paul City
156.27
Council and compliance with Minnesota Statutes, section 645.021.
156
Article 5 Sec. 5.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
157.1
Sec. 6. Laws 2022, chapter 86, article 2, section 5, is amended to read:
157.2
Sec. 5. CITY OF ANOKA; SPECIAL LICENSE SOCIAL DISTRICT LICENSE;
157.3
CITIES OF ANOKA, SHAKOPEE, AND STILLWATER.
157.4
Subdivision 1. Social district; consumption allowed. The city of Anoka cities of Anoka,
157.5
Shakopee, and Stillwater may issue a social district license to any holder of an on-sale
157.6
license whose on-sale premises is contiguous with the premises of the social district
157.7
designated in subdivision 2. The license authorizes consumption, but not sales or service,
157.8
of alcoholic beverages sold by the on-sale licensee within the social district.
157.9
Subd. 2. Designation of social district. (a) Prior to issuing the license in subdivision 1,
157.10
the city of Anoka must designate and describe the premises of the social district. The district
157.11
may not include any area under the ownership or control of a person that objects to the
157.12
extension of the social district to that area.
157.13
(b) The designation must include the specific premises where consumption of alcoholic
157.14
beverages is allowed and also include the proposed hours and days in which consumption
157.15
of alcoholic beverages is allowed in the social district. The city of Anoka must adopt the
157.16
designation by ordinance prior to issuing the license in subdivision 1.
157.17
Subd. 3. Boundaries clearly defined. The social district must be clearly defined with
157.18
signs posted in a conspicuous location indicating the area included in the social district and
157.19
the days and hours during which alcoholic beverages may be consumed in the district. In
157.20
addition, signs must include:
157.21
(1) the local law enforcement agency with jurisdiction over the area comprising the
157.22
social district; and
157.23
(2) a clear statement that an alcoholic beverage purchased for consumption in the social
157.24
district shall:
157.25
(i) only be consumed in the social district; and
157.26
(ii) be disposed of before the person in possession of the alcoholic beverage exits the
157.27
social district unless the person is reentering the licensed premises where the alcoholic
157.28
beverage was purchased.
157.29
Subd. 4. Management and maintenance. The city of Anoka must establish management
157.30
and maintenance plans for the social district and post these plans, along with a rendering
157.31
of the boundaries of the social district and days and hours during which alcoholic beverages
157
Article 5 Sec. 6.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
158.1
may be consumed in the district, on the website for the city of Anoka. The social district
158.2
must be maintained in a manner that protects the health and safety of the general public.
158.3
Subd. 5. Requirements for on-sale licensees. An on-sale licensee holding a social
158.4
district license may only sell and serve alcoholic beverages on the premises specified in the
158.5
licensee's on-sale license. The licensee must not allow a person to enter or reenter its on-sale
158.6
licensed premises with an alcoholic beverage not sold by the on-sale licensee. Sales for
158.7
consumption in the social district must meet the following container requirements:
158.8
(1) the container clearly identifies the on-sale licensee from which the alcoholic beverage
158.9
was purchased;
158.10
(2) the container clearly displays a logo or some other mark that is unique to the social
158.11
district in which it will be consumed;
158.12
(3) the container is not comprised of glass;
158.13
(4) the container displays, in no less than 12-point font, the statement, "Drink Responsibly
158.14
- Be 21."; and
158.15
(5) the container shall not hold more than 16 fluid ounces.
158.16
Subd. 6. Additional social district requirements. The possession and consumption of
158.17
an alcoholic beverage in a social district is subject to all of the following requirements:
158.18
(1) only alcoholic beverages purchased from an on sale-licensee holding a social district
158.19
license located in or contiguous to the social district may be possessed and consumed in the
158.20
district;
158.21
(2) alcoholic beverages shall only be in containers meeting the requirements set forth
158.22
in subdivision 5;
158.23
(3) alcoholic beverages shall only be possessed and consumed during the days and hours
158.24
set by the city of Anoka as specified in subdivision 2; and
158.25
(4) a person shall dispose of any alcoholic beverage in the person's possession prior to
158.26
exiting the social district unless the person is reentering the on-sale licensed premises where
158.27
the alcoholic beverage was purchased.
158.28
Subd. 7. Report required. Within 24 months from the first issuance of a social district
158.29
license, the city of Anoka must provide a report to the chairs and ranking minority members
158.30
of the legislative committees with jurisdiction over liquor regulation. The report must include
158.31
a discussion of the following subjects:
158.32
(1) the process used by the city in designating the social district;
158
Article 5 Sec. 6.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
159.1
(2) the community response to the social district, with a concentration on residents living
159.2
and businesses operating within a one-mile radius of the district;
159.3
(3) the response to the social district from both on-sale licensees holding a social district
159.4
license and not holding a social district license;
159.5
(4) the problems or challenges encountered in establishing and overseeing the social
159.6
district and social district licenses;
159.7
(5) any public safety concerns that arose due to the operation of the social district;
159.8
(6) the benefits and drawbacks to the city of continuing the social district; and
159.9
(7) recommendations for modifications to the social district special law established in
159.10
this section.
159.11
EFFECTIVE DATE. This section is effective after August 31, 2025, for each of the
159.12
cities of Shakopee and Stillwater upon approval by each city council and compliance with
159.13
Minnesota Statutes, section 645.021.
159.14
Sec. 7. SPECIAL LIQUOR LAW; CITY OF LITCHFIELD.
159.15
Notwithstanding Minnesota Statutes, section 624.701, the city of Litchfield may issue
159.16
an on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph
159.17
(d), for sales at town ball games played at a ballpark on school grounds, provided that the
159.18
board of Independent School District No. 465, Litchfield, adopts a resolution approving the
159.19
issuance of the license. The provisions of Minnesota Statutes, section 624.701, do not apply
159.20
to the school grounds or buildings for a license issued under this section.
159.21
EFFECTIVE DATE. This section is effective upon approval by the Litchfield City
159.22
Council and compliance with Minnesota Statutes, section 645.021.
159.23
Sec. 8. SPECIAL LIQUOR LAW; CITY OF WATKINS.
159.24
Notwithstanding Minnesota Statutes, section 624.701, the city of Watkins may issue an
159.25
on-sale license under Minnesota Statutes, section 340A.404, subdivision 1, paragraph (d),
159.26
for sales at town ball games played at a ballpark on school grounds, provided the board of
159.27
Independent School District No. 463, Eden Valley-Watkins, adopts a resolution approving
159.28
the issuance of the license. The provisions of Minnesota Statutes, section 624.701, do not
159.29
apply to the school grounds or buildings for a license issued under this section.
159.30
EFFECTIVE DATE. This section is effective upon approval by the Watkins City
159.31
Council and compliance with Minnesota Statutes, section 645.021.
159
Article 5 Sec. 8.
S4097-3
3rd Engrossment
SF4097
REVISOR
RSI
160.1
Sec. 9. SPORTS AND EVENT CENTER LICENSE; EAGAN.
160.2
Notwithstanding Minnesota Statutes, chapter 340A, or any other local law or ordinance
160.3
to the contrary, the city of Eagan may issue up to three on-sale intoxicating liquor licenses
160.4
to the owner of a multiuse sports and event center located on property in the city of Eagan,
160.5
legally described as Outlot A, Viking Lakes 3rd Addition, or as may be described hereafter
160.6
due to subdivision or replatting, or to any facility operator, concessionaire, catering operator,
160.7
or other third-party food and beverage vendor for the center under contract with the owner.
160.8
A license issued under this section may be issued for a space that is not compact and
160.9
contiguous, provided that the licensed premises shall only be the space described in the
160.10
approved license. A license issued under this section authorizes sales on all days of the
160.11
week. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section,
160.12
apply to a license issued under this section.
160.13
EFFECTIVE DATE. This section is effective upon approval by the Eagan City Council
160.14
and compliance with Minnesota Statutes, section 645.021.
160.15
ARTICLE 6
160.16
MEDICAL SUPPLEMENT IMPLEMENTATION DELAY
160.17
Section 1. Laws 2023, chapter 57, article 2, section 7, the effective date, is amended to
160.18
read:
160.19
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
160.20
policies offered, issued, or renewed on or after that date.
160.21
Sec. 2. Laws 2023, chapter 57, article 2, section 8, the effective date, is amended to read:
160.22
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
160.23
policies offered, issued, or renewed on or after that date.
160.24
Sec. 3. Laws 2023, chapter 57, article 2, section 9, the effective date, is amended to read:
160.25
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
160.26
policies offered, issued, or renewed on or after that date.
160.27
Sec. 4. Laws 2023, chapter 57, article 2, section 10, the effective date, is amended to read:
160.28
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
160.29
policies offered, issued, or renewed on or after that date.
160
Article 6 Sec. 4.
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161.1
Sec. 5. Laws 2023, chapter 57, article 2, section 11, the effective date, is amended to read:
161.2
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
161.3
policies offered, issued, or renewed on or after that date.
161.4
Sec. 6. Laws 2023, chapter 57, article 2, section 12, the effective date, is amended to read:
161.5
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
161.6
policies offered, issued, or renewed on or after that date.
161.7
Sec. 7. Laws 2023, chapter 57, article 2, section 13, the effective date, is amended to read:
161.8
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
161.9
policies offered, issued, or renewed on or after that date.
161.10
Sec. 8. Laws 2023, chapter 57, article 2, section 14, the effective date, is amended to read:
161.11
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
161.12
policies offered, issued, or renewed on or after that date.
161.13
Sec. 9. Laws 2023, chapter 57, article 2, section 15, the effective date, is amended to read:
161.14
EFFECTIVE DATE. This section is effective August 1, 2025 2026, and applies to
161.15
policies offered, issued, or renewed on or after that date.
161
Article 6 Sec. 9.
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REVISOR
RSI
45.014 SEAL OF DEPARTMENT OF COMMERCE.
The commissioner of commerce shall devise a seal for official use as the seal of the Department
of Commerce. The seal must be capable of being legibly reproduced under photographic methods.
A description of the seal, and a copy of it, must be filed in the Office of the Secretary of State.
53B.58 PAYROLL PROCESSING SERVICES; DISCLOSURES.
(a) A licensee that provides payroll processing services must:
(1) issue reports to clients detailing client payroll obligations in advance of the payroll funds
being deducted from an account; and
(2) make available worker pay stubs or an equivalent statement to workers.
(b) Paragraph (a) does not apply to a licensee providing payroll processing services if the
licensee's client designates the intended recipients to the licensee and is responsible for providing
the disclosures required by paragraph (a), clause (2).
58.08 BONDS; LETTERS OF CREDIT.
Subd. 3. Exemption. Subdivision 2 does not apply to mortgage originators or mortgage servicers
who are approved as seller/servicers by the Federal National Mortgage Association or the Federal
Home Loan Mortgage Corporation.
62Q.522 COVERAGE OF CONTRACEPTIVE METHODS AND SERVICES.
Subd. 3. Exemption. (a) An exempt organization is not required to cover contraceptives or
contraceptive services if the exempt organization has religious objections to the coverage. An
exempt organization that chooses to not provide coverage for some or all contraceptives and
contraceptive services must notify employees as part of the hiring process and to all employees at
least 30 days before:
(1) an employee enrolls in the health plan; or
(2) the effective date of the health plan, whichever occurs first.
(b) If the exempt organization provides coverage for some contraceptive methods or services,
the notice required under paragraph (a) must provide a list of the contraceptive methods or services
the organization refuses to cover.
Subd. 4. Accommodation for eligible organizations. (a) A health plan established or maintained
by an eligible organization complies with the requirements of subdivision 2 to provide coverage of
contraceptive methods and services, with respect to the contraceptive methods or services identified
in the notice under this paragraph, if the eligible organization provides notice to any health plan
company the eligible organization contracts with that it is an eligible organization and that the
eligible organization has a religious objection to coverage for all or a subset of contraceptive methods
or services.
(b) The notice from an eligible organization to a health plan company under paragraph (a) must
include: (1) the name of the eligible organization; (2) a statement that it objects to coverage for
some or all of contraceptive methods or services, including a list of the contraceptive methods or
services the eligible organization objects to, if applicable; and (3) the health plan name. The notice
must be executed by a person authorized to provide notice on behalf of the eligible organization.
(c) An eligible organization must provide a copy of the notice under paragraph (a) to prospective
employees as part of the hiring process and to all employees at least 30 days before:
(1) an employee enrolls in the health plan; or
(2) the effective date of the health plan, whichever occurs first.
(d) A health plan company that receives a copy of the notice under paragraph (a) with respect
to a health plan established or maintained by an eligible organization must, for all future enrollments
in the health plan:
(1) expressly exclude coverage for those contraceptive methods or services identified in the
notice under paragraph (a) from the health plan; and
(2) provide separate payments for any contraceptive methods or services required to be covered
under subdivision 2 for enrollees as long as the enrollee remains enrolled in the health plan.
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Repealed Minnesota Statutes: S4097-3
(e) The health plan company must not impose any cost-sharing requirements, including co-pays,
deductibles, or coinsurance, or directly or indirectly impose any premium, fee, or other charge for
contraceptive services or methods on the eligible organization, health plan, or enrollee.
(f) On January 1, 2024, and every year thereafter a health plan company must notify the
commissioner, in a manner determined by the commissioner, of the number of eligible organizations
granted an accommodation under this subdivision.
82B.25 VALUATION BIAS.
82B.25 VALUATION BIAS.
Subdivision 1. Definition. For the purposes of this section, "valuation bias" means to explicitly,
implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased
manner that harms a protected class, as defined by the Fair Housing Act of 1968, as amended.
Subd. 2. Education. A real property appraiser shall provide to the commissioner evidence of
satisfactory completion of a continuing education course on the valuation bias of real property. An
appraiser licensed after September 1, 2021, must complete the course required by this section prior
to the appraiser's first license renewal.
82B.25 VALUATION BIAS.
Subdivision 1. Definition. For the purposes of this section, "valuation bias" means to explicitly,
implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased
manner that harms a protected class, as defined by the Fair Housing Act of 1968, as amended.
Subd. 2. Education. A real property appraiser shall provide to the commissioner evidence of
satisfactory completion of a continuing education course on the valuation bias of real property. An
appraiser licensed after September 1, 2021, must complete the course required by this section prior
to the appraiser's first license renewal.
239.791 OXYGENATED GASOLINE.
Subd. 3. Blending restriction. When gasoline contains an oxygenate, a person responsible for
the product shall not blend the product with ethanol or with any other oxygenate after it is transferred
or otherwise removed from a refinery or terminal.
325G.25 CONTRACT REGULATION.
Subd. 1a. Alternative cancellation notice. In lieu of the notice of cancellation required by
subdivision 1, the seller may provide notice in a manner which conforms to applicable federal law
or regulation or section 325G.08 so long as the notice provides the information required by
subdivision 1.
332.3351 EXEMPTION FROM LICENSURE.
A collection agency shall be exempt from the licensing and registration requirements of this
chapter if all of the following conditions are met:
(1) the agency is located in another state that regulates and licenses collection agencies, but
does not require a Minnesota collection agency to obtain a license to collect debts in the agency's
state if the agency's collection activities are limited in the same manner;
(2) the agency's collection activities are limited to collecting debts not incurred in this state
from consumers located in this state; and
(3) the agency's collection activities in Minnesota are conducted by means of interstate
communications, including telephone, mail, electronic mail, or facsimile transmission.
332.71 DEFINITIONS.
Subd. 8. Harassment. "Harassment" has the meaning given in section 609.748.
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Repealed Minnesota Statutes: S4097-3