New commerce laws affect consumer protections, businesses

Paddlewheel prize maximums are going up to $200; the maximum ticket price will increase to $5.

That is part of a new law that, additionally, will change distributions from the Consumer Protection Restitution Account and direct the Department of Commerce to study home care nursing services.

The maximum that can be deposited annually into the Consumer Protection Restitution Account will increase to $10 million. A formula will be implemented for distributions from the account to eligible consumers: the full amount up to $50,000, and then 50% of the amount over $50,000 or $50,000, whichever is less.

The new law requires the Department of Commerce to evaluate home care nursing services and, by Jan. 15, 2027, report to the Legislature on the evaluation and proposals for legislative action to support the needs of medically complex individuals and their families using home care nursing services.

Additionally, the law makes technical changes to the state’s reinsurance program, repeals the Prescription Drug Affordability Advisory Council and adds hasenpfeffer to the list of social skill games for tournaments and contests.

Sponsored by Rep. Erin Koegel (DFL-Spring Lake Park) and Sen. Matt Klein (DFL-Mendota Heights), the law takes effect Aug. 1, 2026, unless otherwise noted.

HF4188*/SF4365/CH124

Consumer protections, financial products and insurance

The Rental Home Marketplace Guarantees Act will be created by the new law. It will establish requirements for providers and state that a rental home marketplace guarantee isn’t insurance.

Other provisions will:

• clarify when a licensee engaged in virtual currency business activities can include virtual currency in the licensee’s total assets for the calculation of the licensee’s tangible net worth;

• set mortgage loan servicing standards;

• clarify student loan requirements, including providing written notice to the borrower in the case the student loan servicer changes;

• authorize a policyholder to assume responsibility for notifying all covered persons if group life, group accidental death and dismemberment or group disability income policy is canceled;

• authorize the Department of Commerce to issue a limited lines travel insurance producer license and allow a travel retailer to offer and disseminate travel insurance on behalf of or under such license under certain circumstances;

• allow a qualified insurer to offer, issue and renew short-term home health and nursing care insurance; and

• create a comprehensive framework for travel insurance to be sold in Minnesota.

When it comes to securities, the new law will establish regulations for federal crowdfunding offerings; require broker-dealers to establish written supervisory procedures, business continuity and succession plans, and physical security and cybersecurity policies and procedures; and require broker-dealers to observe high standards. The law will outline conduct considered contrary to those standards.

Health insurers and nonprofit health service plan corporations will be required to notify the Department of Commerce if the entity experiences a significant increase in total enrollees; and all health plans must reimburse clinical trainees in an amount that is at least as much as that paid to independently licensed mental health professionals if the trainee is providing alcoholism, mental health and chemical dependency services.

The state’s unclaimed property statute will be amended to define when the prepayment of a funeral or other funeral-related expenses is presumed abandoned; exempt property held in a section 529 or 529A account; and define when virtual currency is presumed abandoned.

HF4188* / SF4365 / CH124