STATE OF
MINNESOTA
NINETY-SECOND
SESSION - 2021
_____________________
THIRTY-NINTH
DAY
Saint Paul, Minnesota, Thursday, April 15, 2021
The House of Representatives convened at
10:30 a.m. and was called to order by Andrew Carlson, Speaker pro tempore.
Prayer was offered by the Reverend Drew
Bakken, Senior Pastor, Lutheran Church of the Cross, Nisswa, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Acomb
Agbaje
Akland
Anderson
Backer
Bahner
Bahr
Baker
Becker-Finn
Bennett
Berg
Bernardy
Bierman
Bliss
Boldon
Burkel
Carlson
Christensen
Daniels
Daudt
Davids
Davnie
Demuth
Dettmer
Drazkowski
Ecklund
Edelson
Elkins
Erickson
Feist
Fischer
Franke
Franson
Frazier
Frederick
Freiberg
Garofalo
Gomez
Green
Greenman
Grossell
Gruenhagen
Haley
Hamilton
Hansen, R.
Hanson, J.
Hassan
Hausman
Heinrich
Heintzeman
Her
Hertaus
Hollins
Hornstein
Howard
Huot
Igo
Johnson
Jordan
Jurgens
Keeler
Kiel
Klevorn
Koegel
Kotyza-Witthuhn
Koznick
Kresha
Lee
Liebling
Lillie
Lippert
Lislegard
Long
Lucero
Lueck
Mariani
Marquart
Masin
McDonald
Mekeland
Miller
Moller
Moran
Morrison
Mortensen
Mueller
Munson
Murphy
Nash
Nelson, M.
Nelson, N.
Neu Brindley
Noor
Novotny
O'Driscoll
Olson, B.
Olson, L.
O'Neill
Pelowski
Petersburg
Pfarr
Pierson
Pinto
Poston
Pryor
Quam
Raleigh
Rasmusson
Reyer
Richardson
Robbins
Sandell
Sandstede
Schomacker
Schultz
Scott
Stephenson
Sundin
Swedzinski
Theis
Thompson
Torkelson
Urdahl
Vang
Wazlawik
West
Winkler
Wolgamott
Xiong, J.
Youakim
Spk. Hortman
A quorum was present.
Albright, Boe and Xiong, T., were excused.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF CHIEF CLERK
S. F. No. 1284 and
H. F. No. 1067, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Davnie moved that
S. F. No. 1284 be substituted for H. F. No. 1067
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1315 and
H. F. No. 1403, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Becker-Finn moved that
S. F. No. 1315 be substituted for H. F. No. 1403
and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:
H. F. No. 600, A bill for an act relating to cannabis; establishing the Cannabis Management Board; establishing advisory councils; requiring reports relating to cannabis use and sales; legalizing and limiting the possession and use of cannabis by adults; providing for the licensing, inspection, and regulation of cannabis businesses; requiring testing of cannabis and cannabis products; requiring labeling of cannabis and cannabis products; limiting the advertisement of cannabis, cannabis products, and cannabis businesses; providing for the cultivation of cannabis in private residences; transferring regulatory authority for the medical cannabis program; taxing the sale of adult-use cannabis; establishing grant and loan programs; amending criminal penalties; establishing expungement procedures for certain individuals; establishing labor standards for the use of cannabis by employees and testing of employees; creating a civil cause of action for certain nuisances; amending the scheduling of marijuana and tetrahydrocannabinols; classifying data; appropriating money; amending Minnesota Statutes 2020, sections 13.411, by adding a subdivision; 13.871, by adding a subdivision; 152.02, subdivisions 2, 4; 152.022, subdivisions 1, 2; 152.023, subdivisions 1, 2; 152.024, subdivision 1; 152.025, subdivisions 1, 2; 181.938, subdivision 2; 181.950, subdivisions 2, 4, 5, 8, 13, by adding a subdivision; 181.951, by adding subdivisions; 181.952, by adding a subdivision; 181.953; 181.954; 181.955; 181.957, subdivision 1; 244.05, subdivision 2; 256.01, subdivision 18c; 256D.024, subdivision 1; 256J.26, subdivision 1; 290.0132, subdivision 29; 290.0134, subdivision 19; 297A.67, subdivisions 2, 7; 297A.99, by adding a subdivision; 297D.01, subdivision 2; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; 297D.11; 609.135, subdivision 1; 609.531, subdivision 1; 609.5311, subdivision 1; 609.5314, subdivision 1; 609.5316, subdivision 2; 609.5317, subdivision 1; 609A.01; 609A.03, subdivisions 5, 9; proposing coding for new law in Minnesota Statutes, chapters 17; 28A; 34A; 116J; 116L; 120B; 144; 152; 289A; 295; 604; 609A; proposing coding for new law as Minnesota Statutes, chapter 342; repealing Minnesota Statutes 2020, sections 152.027, subdivisions 3, 4; 152.22, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 6, 7, 8, 9, 10, 11, 12, 13, 14; 152.23; 152.24; 152.25, subdivisions 1, 1a, 1b, 1c, 2, 3, 4; 152.26; 152.261; 152.27, subdivisions 1, 2, 3, 4, 5, 6, 7; 152.28, subdivisions 1, 2, 3; 152.29, subdivisions 1, 2, 3, 3a, 4; 152.30; 152.31; 152.32, subdivisions 1, 2, 3; 152.33, subdivisions 1, 1a, 2, 3, 4, 5, 6; 152.34; 152.35; 152.36, subdivisions 1, 1a, 2, 3, 4, 5; 152.37; 297D.01, subdivision 1; Minnesota Rules, parts 4770.0100; 4770.0200; 4770.0300; 4770.0400; 4770.0500; 4770.0600; 4770.0800; 4770.0900; 4770.1000; 4770.1100; 4770.1200; 4770.1300; 4770.1400; 4770.1460; 4770.1500; 4770.1600; 4770.1700; 4770.1800; 4770.1900; 4770.2000; 4770.2100; 4770.2200; 4770.2300; 4770.2400; 4770.2700; 4770.2800; 4770.4000; 4770.4002; 4770.4003; 4770.4004; 4770.4005; 4770.4007; 4770.4008; 4770.4009; 4770.4010; 4770.4012; 4770.4013; 4770.4014; 4770.4015; 4770.4016; 4770.4017; 4770.4018; 4770.4030.
Reported the same back with the recommendation that the bill be re-referred to the Committee on State Government Finance and Elections.
The
report was adopted.
Moran from the Committee on Ways and Means to which was referred:
H. F. No. 1031, A bill for an act relating to commerce; establishing a biennial budget for certain Department of Commerce activities; modifying various provisions governing and administered by the Department of Commerce; establishing a prescription drug affordability board and related regulations; modifying various provisions regulating insurance; establishing a student loan borrower bill of rights; modifying and adding consumer protections; modifying provisions governing collection agencies and debt buyers; modifying requirements for real estate appraiser continuing education; modifying fees; establishing penalties; requiring reports; appropriating money; amending Minnesota Statutes 2020, sections 13.712, by adding a subdivision; 45.305, subdivision 1, by adding a subdivision; 45.306, by adding a subdivision; 45.33, subdivision 1, by adding a subdivision; 47.59, subdivision 2; 47.60, subdivision 2; 47.601, subdivisions 2, 6; 48.512, subdivisions 2, 3, 7; 53.04, subdivision 3a; 56.131, subdivision 1; 60A.092, subdivision 10a, by adding a subdivision; 60A.0921, subdivision 2; 60A.14, subdivision 1; 60A.71, subdivision 7; 61A.245, subdivision 4; 62J.23, subdivision 2; 65B.15, subdivision 1; 65B.43, subdivision 12; 65B.472, subdivision 1; 79.55, subdivision 10; 80G.06, subdivision 1; 82.57, subdivisions 1, 5; 82.62, subdivision 3; 82.81, subdivision 12; 82B.021, subdivision 18, by adding subdivisions; 82B.03, by adding a subdivision; 82B.11, subdivision 3; 82B.195, by adding a subdivision; 115C.094; 174.29, subdivision 1; 174.30, subdivisions 1, 10; 216B.62, subdivision 3b; 221.031, subdivision 3b; 256B.0625, subdivisions 10, 17; 308A.201, subdivision 12; 325E.21, by adding subdivisions; 325F.171, by adding a subdivision; 325F.172, by adding a subdivision; 332.31, subdivisions 3, 6, by adding subdivisions; 332.311; 332.32; 332.33, subdivisions 1, 2, 5, 5a, 7, 8, by adding a subdivision; 332.34; 332.345; 332.355; 332.37; 332.385; 332.40, subdivision 3; 332.42, subdivisions 1, 2; 386.375, subdivision 3; 514.972, subdivisions 4, 5; 514.973, subdivisions 3, 4; 514.974; 514.977; proposing coding for new law in Minnesota Statutes, chapters 60A; 62J; 62Q; 80G; 82B; 325E; 325F; 332; proposing coding for new law as Minnesota Statutes, chapter 58B; repealing Minnesota Statutes 2020, sections 45.017; 45.306, subdivision 1; 60A.98; 60A.981; 60A.982; 115C.13.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
COMMERCE FINANCE
Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively. "The first year"
is fiscal year 2022. "The second
year" is fiscal year 2023. "The
biennium" is fiscal years 2022 and 2023.
If an appropriation in this act is enacted more than once in the 2021
legislative session, the appropriation must be given effect only once.
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APPROPRIATIONS |
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Available for the Year |
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Ending June 30 |
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2022 |
2023 |
Sec. 2. DEPARTMENT
OF COMMERCE |
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The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Financial
Institutions |
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1,923,000
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1,941,000
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Appropriations
by Fund |
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General |
1,923,000
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1,941,000
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(a) $400,000 each year is for a grant to
Prepare and Prosper to develop, market, evaluate, and distribute a financial
services inclusion program that (1) assists low-income and financially underserved
populations to build savings and strengthen credit, and (2) provides services
to assist low-income and financially underserved populations to become more
financially stable and secure. Money
remaining after the first year is available for the second year.
(b) $254,000 each year is to administer
the requirements of Minnesota Statutes, chapter 58B.
Subd. 3. Administrative
Services |
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9,346,000
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8,821,000
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(a) $392,000 in the first year and
$401,000 in the second year are for additional compliance efforts with
unclaimed property. The commissioner may
issue contracts for these services.
(b) $5,000 each year is for Real Estate
Appraisal Advisory Board compensation pursuant to Minnesota Statutes, section
82B.073, subdivision 2a.
(c) $353,000 each year is for system
modernization and cybersecurity upgrades for the unclaimed property program.
(d) $564,000 each year is for additional
operations of the unclaimed property program.
(e) $832,000 in the first year and
$208,000 in the second year are for IT system modernization. The base in fiscal year 2024 and beyond is
$0.
Subd. 4. Telecommunications
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3,443,000
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3,183,000
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Appropriations
by Fund |
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General |
1,073,000
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1,090,000
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Special Revenue |
2,370,000
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2,093,000
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$2,370,000 in the first year and
$2,093,000 in the second year are from the telecommunications access Minnesota
fund account in the special revenue fund for the following transfers:
(1) $1,620,000 each year is to the
commissioner of human services to supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. This transfer is subject to Minnesota
Statutes, section 16A.281;
(2) $290,000 each year is to the chief
information officer to coordinate technology accessibility and usability;
(3) $410,000 in the first year and
$133,000 in the second year are to the Legislative Coordinating Commission for
captioning legislative coverage. This
transfer is subject to Minnesota Statutes, section 16A.281. Notwithstanding any law to the contrary, the
commissioner of management and budget must determine whether $310,000 of the
expenditures authorized under this clause for the first year are eligible uses
of federal funding received under the Coronavirus State Fiscal Recovery Fund or
any other federal funds received by the state under the American Rescue Plan
Act, Public Law 117-2. If the
commissioner of management and budget determines an expenditure is eligible for
funding under Public Law 117-2, the amount of the eligible expenditure is appropriated
from the account where the federal funds have been deposited and the
corresponding Telecommunications Access Minnesota Fund amounts appropriated
under this clause cancel to the Telecommunications Access Minnesota Fund; and
(4) $50,000 each year is to the Office of MN.IT
Services for a consolidated access fund to provide grants or services to other
state agencies related to accessibility of web-based services.
Subd. 5. Enforcement
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6,231,000
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5,632,000
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Appropriations
by Fund |
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General |
5,825,000
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5,426,000
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Workers' Compensation |
206,000
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206,000
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Special Revenue Fund |
200,000
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-0-
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(a) $283,000 in the first year and
$286,000 in the second year are for health care enforcement.
(b)
$201,000 each year is from the workers' compensation fund.
(c) $5,000 each year is from the workers'
compensation fund for insurance fraud specialist salary increases.
(d) Notwithstanding Minnesota Statutes,
section 297I.11, subdivision 2, $200,000 in the first year is from the auto
theft prevention account in the special revenue fund for the catalytic
converter theft prevention pilot project.
This balance does not cancel but is available in the second year.
(e) $190,000 in the first year is from the
general fund for the catalytic converter theft prevention pilot project. This balance does not cancel but is available
in the second year. The general fund
base for the catalytic converter theft prevention pilot project in fiscal year
2024 and fiscal year 2025 is $92,000.
(f) $300,000 in the first year is transferred
from the consumer education account in the special revenue fund to the general
fund. $300,000 in the first year is to
the commissioner of education to issue grants of $150,000 each year to the
Minnesota Council on Economic Education.
This balance does not cancel but is available in the second year.
Subd. 6. Insurance
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6,660,000
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7,343,000
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Appropriations
by Fund |
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General |
6,100,000
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6,783,000
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Workers' Compensation |
560,000
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560,000
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(a) $656,000 in the first year and
$671,000 in the second year are for health insurance rate review staffing.
(b) $421,000 in the first year and $431,000 in the second year are for actuarial work to prepare for implementation of principle-based reserves.
(c) $30,000 in the first year is to pay for two years of membership dues for Minnesota to the National Conference of Insurance Legislators.
(d) $428,000 in the first year and
$432,000 in the second year are for licensing activities under Minnesota
Statutes, chapter 62W. Of this amount,
$246,000 each year must be used only for staff costs associated with two
enforcement investigators to enforce Minnesota Statutes, chapter 62W.
(e) $560,000 each year is from the
workers' compensation fund.
(f)
$197,000 in the first year is to establish the Prescription Drug Affordability
Board under Minnesota Statutes, section 62J.87.
Following the first meeting of the board and prior to June 30, 2022, the
commissioner shall transfer any funds remaining from this appropriation to the
board.
(g) $358,000 in the second year is to the
Prescription Drug Affordability Board established under Minnesota Statutes,
section 62J.87, to implement the Prescription Drug Affordability Act.
(h) $456,000 in the second year is to the
attorney general's office to enforce the Prescription Drug Affordability Act.
Sec. 3. CANCELLATION;
FISCAL YEAR 2021.
$1,220,000 of the fiscal year 2021
general fund appropriation under Laws 2019, First Special Session chapter 7,
article 1, section 6, subdivision 3, is canceled.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. DEPARTMENT
OF COMMERCE; APPROPRIATION.
(a) $4,000 in fiscal year 2021 is
appropriated from the workers' compensation fund to the commissioner of
commerce for insurance fraud specialist salary increases.
(b) $97,000 in fiscal year 2021 is
appropriated from the general fund to the commissioner of commerce for
enforcement.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 2
PRESCRIPTION DRUG AFFORDABILITY BOARD
Section 1.
[62J.85] CITATION.
Sections 62J.85 to 62J.95 may be cited
as the "Prescription Drug Affordability Act."
Sec. 2. [62J.86]
DEFINITIONS.
Subdivision 1. Definitions. For the purposes of sections 62J.85 to
62J.95, the following terms have the meanings given them.
Subd. 2. Advisory
council. "Advisory
council" means the Prescription Drug Affordability Advisory Council
established under section 62J.88.
Subd. 3. Biologic. "Biologic" means a drug that
is produced or distributed in accordance with a biologics license application
approved under Code of Federal Regulations, title 42, section 447.502.
Subd. 4. Biosimilar. "Biosimilar" has the meaning
given in section 62J.84, subdivision 2, paragraph (b).
Subd. 5. Board. "Board" means the
Prescription Drug Affordability Board established under section 62J.87.
Subd. 6. Brand
name drug. "Brand name
drug" has the meaning given in section 62J.84, subdivision 2, paragraph
(c).
Subd. 7. Generic
drug. "Generic
drug" has the meaning given in section 62J.84, subdivision 2, paragraph
(e).
Subd. 8. Group
purchaser. "Group
purchaser" has the meaning given in section 62J.03, subdivision 6, and
includes pharmacy benefit managers, as defined in section 62W.02, subdivision
15.
Subd. 9. Manufacturer. "Manufacturer" means an
entity that:
(1) engages in the manufacture of a
prescription drug product or enters into a lease with another manufacturer to
market and distribute a prescription drug product under the entity's own name; and
(2) sets or changes the wholesale
acquisition cost of the prescription drug product it manufacturers or markets.
Subd. 10. Prescription
drug product. "Prescription
drug product" means a brand name drug, a generic drug, a biologic, or a
biosimilar.
Subd. 11. Wholesale
acquisition cost or WAC. "Wholesale
acquisition cost" or "WAC" has the meaning given in United
States Code, title 42, section 1395W-3a(c)(6)(B).
Sec. 3. [62J.87]
PRESCRIPTION DRUG AFFORDABILITY BOARD.
Subdivision 1. Establishment. The commissioner of commerce shall
establish the Prescription Drug Affordability Board, which shall be governed as
a board under section 15.012, paragraph (a), to protect consumers, state and
local governments, health plan companies, providers, pharmacies, and other
health care system stakeholders from unaffordable costs of certain prescription
drugs.
Subd. 2. Membership. (a) The Prescription Drug
Affordability Board consists of nine members appointed as follows:
(1) seven voting members appointed by
the governor;
(2) one nonvoting member appointed by
the majority leader of the senate; and
(3) one nonvoting member appointed by
the speaker of the house.
(b) All members appointed must have
knowledge and demonstrated expertise in pharmaceutical economics and finance or
health care economics and finance. A
member must not be an employee of, a board member of, or a consultant to a
manufacturer or trade association for manufacturers or a pharmacy benefit
manager or trade association for pharmacy benefit managers.
(c) Initial appointments shall be made
by January 1, 2022.
Subd. 3. Terms. (a) Board appointees shall serve
four-year terms, except that initial appointees shall serve staggered terms of
two, three, or four years as determined by lot by the secretary of state. A board member shall serve no more than two
consecutive terms.
(b) A board member may resign at any
time by giving written notice to the board.
Subd. 4. Chair;
other officers. (a) The
governor shall designate an acting chair from the members appointed by the
governor. The acting chair shall convene
the first meeting of the board.
(b) The board shall elect a chair to
replace the acting chair at the first meeting of the board by a majority of the
members. The chair shall serve for one
year.
(c) The board shall elect a vice-chair
and other officers from the board's membership as the board deems necessary.
Subd. 5. Staff;
technical assistance. (a) The
board shall hire an executive director and other staff, who shall serve in the unclassified
service. The executive director must
have knowledge and demonstrated expertise in pharmacoeconomics, pharmacology,
health policy, health services research, medicine, or a related field or
discipline. The board may employ or
contract for professional and technical assistance as the board deems necessary
to perform the board's duties.
(b) The attorney general shall provide
legal services to the board.
Subd. 6. Compensation. The board members shall not receive
compensation but may receive reimbursement for expenses as authorized under
section 15.059, subdivision 3.
Subd. 7. Meetings. (a) Meetings of the board are subject
to chapter 13D. The board shall meet
publicly at least every three months to review prescription drug product
information submitted to the board under section 62J.90. If there are no pending submissions, the
chair of the board may cancel or postpone the required meeting. The board may meet in closed session when
reviewing proprietary information, as determined under the standards developed
in accordance with section 62J.91, subdivision 4.
(b) The board shall announce each
public meeting at least two weeks prior to the scheduled date of the meeting. Any materials for the meeting shall be made
public at least one week prior to the scheduled date of the meeting.
(c) At each public meeting, the board
shall provide the opportunity for comments from the public, including the
opportunity for written comments to be submitted to the board prior to a
decision by the board.
Sec. 4. [62J.88]
PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL.
Subdivision 1. Establishment. The governor shall appoint a 12-member
stakeholder advisory council to provide advice to the board on drug cost issues
and to represent stakeholders' views. The
members of the advisory council shall be appointed based on the members'
knowledge and demonstrated expertise in one or more of the following areas: the pharmaceutical business; practice of
medicine; patient perspectives; health care cost trends and drivers; clinical
and health services research; and the health care marketplace.
Subd. 2. Membership. The council's membership shall consist
of the following:
(1) two members representing patients
and health care consumers;
(2) two members representing health
care providers;
(3) one member representing health plan
companies;
(4) two members representing employers,
with one member representing large employers and one member representing small
employers;
(5)
one member representing government employee benefit plans;
(6) one member representing
pharmaceutical manufacturers;
(7) one member who is a health services
clinical researcher;
(8) one member who is a pharmacologist;
and
(9) one member with expertise in health
economics representing the commissioner of health.
Subd. 3. Terms. (a) The initial appointments to the
advisory council shall be made by January 1, 2022. The initial appointed advisory council
members shall serve staggered terms of two, three, or four years determined by
lot by the secretary of state. Following
the initial appointments, the advisory council members shall serve four-year
terms.
(b) Removal and vacancies of advisory
council members is governed by section 15.059.
Subd. 4. Compensation. Advisory council members may be compensated
according to section 15.059.
Subd. 5. Meetings. Meetings of the advisory council are
subject to chapter 13D. The advisory
council shall meet publicly at least every three months to advise the board on
drug cost issues related to the prescription drug product information submitted
to the board under section 62J.90.
Subd. 6. Exemption. Notwithstanding section 15.059, the
advisory council does not expire.
Sec. 5. [62J.89]
CONFLICTS OF INTEREST.
Subdivision 1. Definition. For purposes of this section,
"conflict of interest" means a financial or personal association that
has the potential to bias or have the appearance of biasing a person's
decisions in matters related to the board, the advisory council, or in the
conduct of the board's or council's activities.
A conflict of interest includes any instance in which a person, a
person's immediate family member, including a spouse, parent, child, or other
legal dependent, or an in-law of any of the preceding individuals has received
or could receive a direct or indirect financial benefit of any amount deriving
from the result or findings of a decision or determination of the board. For purposes of this section, a financial
benefit includes honoraria, fees, stock, the value of the member's, immediate
family member's, or in-law's stock holdings, and any direct financial benefit
deriving from the finding of a review conducted under sections 62J.85 to 62J.95. Ownership of securities is not a conflict of
interest if the securities are: (1) part
of a diversified mutual or exchange traded fund; or (2) in a tax-deferred or
tax-exempt retirement account that is administered by an independent trustee.
Subd. 2. General. (a) Prior to the acceptance of an
appointment or employment, or prior to entering into a contractual agreement, a
board or advisory council member, board staff member, or third-party contractor
must disclose to the appointing authority or the board any conflicts of
interest. The information disclosed
shall include the type, nature, and magnitude of the interests involved.
(b) A board member, board staff member,
or third-party contractor with a conflict of interest with regard to any
prescription drug product under review must recuse themselves from any
discussion, review, decision, or determination made by the board relating to
the prescription drug product.
(c) Any conflict of interest must be
disclosed in advance of the first meeting after the conflict is identified or
within five days after the conflict is identified, whichever is earlier.
Subd. 3. Prohibitions. Board members, board staff, or
third-party contractors are prohibited from accepting gifts, bequeaths, or
donations of services or property that raise the specter of a conflict of
interest or have the appearance of injecting bias into the activities of the
board.
Sec. 6. [62J.90]
PRESCRIPTION DRUG PRICE INFORMATION; DECISION TO CONDUCT COST REVIEW.
Subdivision 1. Drug
price information from the commissioner of health and other sources. (a) The commissioner of health shall
provide to the board the information reported to the commissioner by drug
manufacturers under section 62J.84, subdivisions 3, 4, and 5. The commissioner shall provide this
information to the board within 30 days of the date the information is received
from drug manufacturers.
(b) The board shall subscribe to one or
more prescription drug pricing files, such as Medispan or FirstDatabank, or as
otherwise determined by the board.
Subd. 2. Identification
of certain prescription drug products.
(a) The board, in consultation with the advisory council, shall
identify the following prescription drug products:
(1) brand name drugs or biologics for
which the WAC increases by more than ten percent or by more than $10,000 during
any 12-month period or course of treatment if less than 12 months, after
adjusting for changes in the Consumer Price Index (CPI);
(2) brand name drugs or biologics that
have been introduced at a WAC of $30,000 or more per calendar year or per
course of treatment;
(3) biosimilar drugs that have been
introduced at a WAC that is not at least 15 percent lower than the referenced
brand name biologic at the time the biosimilar is introduced; and
(4) generic drugs for which the WAC:
(i) is $100 or more, after adjusting
for changes in the Consumer Price Index (CPI), for:
(A) a 30-day supply lasting a patient
for a period of 30 consecutive days based on the recommended dosage approved
for labeling by the United States Food and Drug Administration (FDA);
(B) a supply lasting a patient for fewer
than 30 days based on recommended dosage approved for labeling by the FDA; or
(C) one unit of the drug if the
labeling approved by the FDA does not recommend a finite dosage; and
(ii) is increased by 200 percent or
more during the immediate preceding 12-month period, as determined by the
difference between the resulting WAC and the average of the WAC reported over
the preceding 12 months, after adjusting for changes in the Consumer Price
Index (CPI).
(b) The board, in consultation with the
advisory council, shall identify prescription drug products not described in
paragraph (a) that may impose costs that create significant affordability
challenges for the state health care system or for patients, including but not
limited to drugs to address public health emergencies.
(c) The board shall make available to
the public the names and related price information of the prescription drug
products identified under this subdivision, with the exception of information
determined by the board to be proprietary under the standards developed by the
board under section 62J.91, subdivision 4.
Subd. 3. Determination
to proceed with review. (a)
The board may initiate a cost review of a prescription drug product identified
by the board under this section.
(b) The board shall consider requests
by the public for the board to proceed with a cost review of any prescription
drug product identified under this section.
(c) If there is no consensus among the
members of the board with respect to whether or not to initiate a cost review
of a prescription drug product, any member of the board may request a vote to
determine whether or not to review the cost of the prescription drug product.
Sec. 7. [62J.91]
PRESCRIPTION DRUG PRODUCT REVIEWS.
Subdivision 1. General. Once a decision by the board has been
made to proceed with a cost review of a prescription drug product, the board
shall conduct the review and make a determination as to whether appropriate
utilization of the prescription drug under review, based on utilization that is
consistent with the United States Food and Drug Administration (FDA) label or
standard medical practice, has led or will lead to affordability challenges for
the state health care system or for patients.
Subd. 2. Review
considerations. In reviewing
the cost of a prescription drug product, the board may consider the following
factors:
(1) the price at which the prescription
drug product has been and will be sold in the state;
(2) the average monetary price
concession, discount, or rebate the manufacturer provides to a group purchaser
in this state as reported by the manufacturer and the group purchaser expressed
as a percent of the WAC for prescription drug product under review;
(3) the price at which therapeutic
alternatives have been or will be sold in the state;
(4) the average monetary price
concession, discount, or rebate the manufacturer provides or is expected to
provide to a group purchaser in the state or is expected to provide to group
purchasers in the state for therapeutic alternatives;
(5) the cost to group purchasers based
on patient access consistent with the United States Food and Drug
Administration (FDA) labeled indications;
(6) the impact on patient access
resulting from the cost of the prescription drug product relative to insurance
benefit design;
(7) the current or expected dollar
value of drug-specific patient access programs that are supported by
manufacturers;
(8) the relative financial impacts to
health, medical, or other social services costs that can be quantified and
compared to baseline effects of existing therapeutic alternatives;
(9) the average patient co-pay or other
cost-sharing for the prescription drug product in the state;
(10) any information a manufacturer
chooses to provide; and
(11) any other factors as determined by
the board.
Subd. 3. Further
review factors. If, after
considering the factors described in subdivision 2, the board is unable to
determine whether a prescription drug product will produce or has produced an
affordability challenge, the board may consider:
(1) manufacturer research and
development costs, as indicated on the manufacturer's federal tax filing for
the most recent tax year in proportion to the manufacturer's sales in the
state;
(2) that portion of direct-to-consumer marketing
costs eligible for favorable federal tax treatment in the most recent tax year
that are specific to the prescription drug product under review and that are
multiplied by the ratio of total manufacturer in-state sales to total
manufacturer sales in the United States for the product under review;
(3) gross and net manufacturer revenues
for the most recent tax year;
(4) any information and research related
to the manufacturer's selection of the introductory price or price increase,
including but not limited to:
(i) life cycle management;
(ii) market competition and context; and
(iii) projected revenue; and
(5) any additional factors determined by
the board to be relevant.
Subd. 4. Public
data; proprietary information. (a)
Any submission made to the board related to a drug cost review shall be made
available to the public, with the exception of information determined by the
board to be proprietary.
(b) The board shall establish the
standards for the information to be considered proprietary under paragraph (a)
and section 62J.90, subdivision 2, including standards for heightened
consideration of proprietary information for submissions for a cost review of a
drug that is not yet approved by the FDA.
(c) Prior to the board establishing the
standards under paragraph (b), the public shall be provided notice and the
opportunity to submit comments.
Sec. 8. [62J.92]
DETERMINATIONS; COMPLIANCE; REMEDIES.
Subdivision 1. Upper
payment limit. (a) In the
event the board finds that the spending on a prescription drug product reviewed
under section 62J.91 creates an affordability challenge for the state health
care system or for patients, the board shall establish an upper payment limit
after considering:
(1) the cost to administer the drug;
(2) the cost to deliver the drug to
consumers;
(3) the range of prices at which the
drug is sold in the United States according to one or more pricing files
accessed under section 62J.90, subdivision 1, and the range at which pharmacies
are reimbursed in Canada; and
(4) any other relevant pricing and
administrative cost information for the drug.
(b) The upper payment limit shall apply
to all public and private purchases, payments, and payer reimbursements for the
prescription drug product that is intended for individuals in the state in
person, by mail, or by other means.
Subd. 2. Noncompliance. (a) The failure of an entity to comply
with an upper payment limit established by the board under this section shall
be referred to the Office of the Attorney General.
(b) If the Office of the Attorney
General finds that an entity was noncompliant with the upper payment limit
requirements, the attorney general may pursue remedies consistent with chapter
8 or appropriate criminal charges if there is evidence of intentional
profiteering.
(c) An entity who obtains price
concessions from a drug manufacturer that result in a lower net cost to the
stakeholder than the upper payment limit established by the board shall not be
considered to be in noncompliance.
(d) The Office of the Attorney General
may provide guidance to stakeholders concerning activities that could be
considered noncompliant.
Subd. 3. Appeals. (a) A person affected by a decision of
the board may request an appeal of the board's decision within 30 days of the
date of the decision. The board shall
hear the appeal and render a decision within 60 days of the hearing.
(b) All appeal decisions are subject to
judicial review in accordance with chapter 14.
Sec. 9. [62J.93]
REPORTS.
Beginning March 1, 2022, and each March
1 thereafter, the board shall submit a report to the governor and legislature
on general price trends for prescription drug products and the number of
prescription drug products that were subject to the board's cost review and
analysis, including the result of any analysis as well as the number and
disposition of appeals and judicial reviews.
Sec. 10. [62J.94]
ERISA PLANS AND MEDICARE DRUG PLANS.
(a) Nothing in sections 62J.85 to
62J.95 shall be construed to require ERISA plans or Medicare Part D plans to
comply with decisions of the board, but are free to choose to exceed the upper
payment limit established by the board under section 62J.92.
(b) Providers who dispense and
administer drugs in the state must bill all payers no more than the upper
payment limit without regard to whether or not an ERISA plan or Medicare Part D
plan chooses to reimburse the provider in an amount greater than the upper
payment limit established by the board.
(c) For purposes of this section, an
ERISA plan or group health plan is an employee welfare benefit plan established
by or maintained by an employer or an employee organization, or both, that
provides employer sponsored health coverage to employees and the employee's
dependents and is subject to the Employee Retirement Income Security Act of
1974 (ERISA).
Sec. 11. [62J.95]
SEVERABILITY.
If any provision of sections 62J.85 to
62J.94 or the application of sections 62J.85 to 62J.94 to any person or
circumstance is held invalid for any reason in a court of competent
jurisdiction, the invalidity does not affect other provisions or any other
application of sections 62J.85 to 62J.94 that can be given effect without the
invalid provision or application.
ARTICLE 3
INSURANCE
Section 1. Minnesota Statutes 2020, section 60A.092, subdivision 10a, is amended to read:
Subd. 10a. Other
jurisdictions. The reinsurance is
ceded and credit allowed to an assuming insurer not meeting the requirements of
subdivision 2, 3, 4, 5, or 10, or 10b, but only with respect to
the insurance of risks located in jurisdictions where the reinsurance is
required by applicable law or regulation of that jurisdiction.
EFFECTIVE
DATE. This section is
effective January 1, 2022, and applies to reinsurance contracts entered into or
renewed on or after that date.
Sec. 2. Minnesota Statutes 2020, section 60A.092, is amended by adding a subdivision to read:
Subd. 10b. Credit
allowed; reciprocal jurisdiction. (a)
Credit shall be allowed when the reinsurance is ceded to an assuming insurer
meeting each of the following conditions:
(1) the assuming insurer must have its
head office in or be domiciled in, as applicable, and be licensed in a
reciprocal jurisdiction. A
"reciprocal jurisdiction" means a jurisdiction that is:
(i) a non-United States jurisdiction
that is subject to an in-force covered agreement with the United States, each
within its legal authority, or, in the case of a covered agreement between the
United States and the European Union, is a member state of the European Union. For purposes of this subdivision, a
"covered agreement" means an agreement entered into pursuant to the
Dodd-Frank Wall Street Reform and Consumer Protection Act, United States Code,
title 31, sections 313 and 314, that is currently in effect or in a period of
provisional application and addresses the elimination, under specified
conditions, of collateral requirements as a condition for entering into any
reinsurance agreement with a ceding insurer domiciled in Minnesota or for
allowing the ceding insurer to recognize credit for reinsurance;
(ii) a United States jurisdiction that
meets the requirements for accreditation under the National Association of
Insurance Commissioners (NAIC) financial standards and accreditation program;
or
(iii) a qualified jurisdiction, as
determined by the commissioner, which is not otherwise described in item (i) or
(ii) and which meets the following additional requirements, consistent with the
terms and conditions of in-force covered agreements:
(A) provides that an insurer which has
its head office or is domiciled in such qualified jurisdiction shall receive
credit for reinsurance ceded to a United States-domiciled assuming insurer in
the same manner as credit for reinsurance is received for reinsurance assumed
by insurers domiciled in such qualified jurisdiction;
(B) does not require a United
States-domiciled assuming insurer to establish or maintain a local presence as
a condition for entering into a reinsurance agreement with any ceding insurer
subject to regulation by the non-United States jurisdiction or as a condition
to allow the ceding insurer to recognize credit for such reinsurance;
(C) recognizes the United States state
regulatory approach to group supervision and group capital, by providing
written confirmation by a competent regulatory authority, in such qualified
jurisdiction, that insurers and insurance groups that are domiciled or maintain
their headquarters in this state or another jurisdiction accredited by the NAIC
shall be subject only to worldwide prudential insurance group supervision
including worldwide group governance, solvency and capital, and reporting, as
applicable, by the commissioner or the commissioner of the domiciliary state
and will not be subject to group supervision at the level of the worldwide
parent undertaking of the insurance or reinsurance group by the qualified
jurisdiction; and
(D)
provides written confirmation by a competent regulatory authority in such
qualified jurisdiction that information regarding insurers and their parent,
subsidiary, or affiliated entities, if applicable, shall be provided to the
commissioner in accordance with a memorandum of understanding or similar
document between the commissioner and such qualified jurisdiction, including
but not limited to the International Association of Insurance Supervisors
Multilateral Memorandum of Understanding or other multilateral memoranda of
understanding coordinated by the NAIC;
(2) the assuming insurer must have and
maintain, on an ongoing basis, minimum capital and surplus, or its equivalent,
calculated according to the methodology of its domiciliary jurisdiction, on at
least an annual basis as of the preceding December 31 or on the date otherwise
statutorily reported to the reciprocal jurisdiction, in the following amounts:
(i) no less than $250,000,000; or
(ii) if the assuming insurer is an
association, including incorporated and individual unincorporated underwriters:
(A) minimum capital and surplus
equivalents, net of liabilities, or own funds of the equivalent of at least
$250,000,000; and
(B) a central fund containing a balance
of the equivalent of at least $250,000,000;
(3) the assuming insurer must have and
maintain, on an ongoing basis, a minimum solvency or capital ratio, as
applicable, as follows:
(i) if the assuming insurer has its head
office or is domiciled in a reciprocal jurisdiction defined in clause (1), item
(i), the ratio specified in the applicable covered agreement;
(ii) if the assuming insurer is
domiciled in a reciprocal jurisdiction defined in clause (1), item (ii), a
risk-based capital ratio of 300 percent of the authorized control level,
calculated in accordance with the formula developed by the NAIC; or
(iii) if the assuming insurer is
domiciled in a Reciprocal Jurisdiction defined in clause (1), item (iii), after
consultation with the reciprocal jurisdiction and considering any
recommendations published through the NAIC Committee Process, such solvency or
capital ratio as the commissioner determines to be an effective measure of
solvency;
(4) the assuming insurer must agree and
provide adequate assurance in the form of a properly executed Form AR-1, Form
CR-1, and Form RJ-1 of its agreement to the following:
(i) the assuming insurer must provide
prompt written notice and explanation to the commissioner if it falls below the
minimum requirements set forth in clause (2) or (3), or if any regulatory
action is taken against the assuming insurer for serious noncompliance with
applicable law;
(ii) the assuming insurer must consent
in writing to the jurisdiction of the courts of Minnesota and to the
appointment of the commissioner as agent for service of process. The commissioner may require that consent for
service of process be provided to the commissioner and included in each
reinsurance agreement. Nothing in this
subdivision shall limit or in any way alter the capacity of parties to a
reinsurance agreement to agree to alternative dispute resolution mechanisms,
except to the extent such agreements are unenforceable under applicable insolvency
or delinquency laws;
(iii) the assuming insurer must consent
in writing to pay all final judgments, wherever enforcement is sought, obtained
by a ceding insurer or its legal successor, that have been declared enforceable
in the jurisdiction where the judgment was obtained;
(iv) each reinsurance agreement must include a provision requiring the assuming insurer to provide security in an amount equal to 100 percent of the assuming insurer's liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate;
(v) the assuming insurer must confirm
that it is not presently participating in any solvent scheme of arrangement
which involves this state's ceding insurers, and agree to notify the ceding
insurer and the commissioner and to provide security in an amount equal to 100
percent of the assuming insurer's liabilities to the ceding insurer, should the
assuming insurer enter into such a solvent scheme of arrangement. The security shall be in a form consistent
with sections 60A.092, subdivision 10, 60A.093, 60A.096, and 60A.097. For purposes of this section, the term
"solvent scheme of arrangement" means a foreign or alien statutory or
regulatory compromise procedure subject to requisite majority creditor approval
and judicial sanction in the assuming insurer's home jurisdiction either to
finally commute liabilities of duly noticed classed members or creditors of a
solvent debtor, or to reorganize or restructure the debts and obligations of a
solvent debtor on a final basis, and which may be subject to judicial
recognition and enforcement of the arrangement by a governing authority outside
the ceding insurer's home jurisdiction; and
(vi) the assuming insurer must agree in
writing to meet the applicable information filing requirements set forth in
clause (5);
(5) the assuming insurer or its legal
successor must provide, if requested by the commissioner, on behalf of itself
and any legal predecessors, the following documentation to the commissioner:
(i) for the two years preceding entry
into the reinsurance agreement and on an annual basis thereafter, the assuming
insurer's annual audited financial statements, in accordance with the
applicable law of the jurisdiction of its head office or domiciliary
jurisdiction, as applicable, including the external audit report;
(ii) for the two years preceding entry
into the reinsurance agreement, the solvency and financial condition report or
actuarial opinion, if filed with the assuming insurer's supervisor;
(iii) prior to entry into the
reinsurance agreement and not more than semiannually thereafter, an updated
list of all disputed and overdue reinsurance claims outstanding for 90 days or
more, regarding reinsurance assumed from ceding insurers domiciled in the
United States; and
(iv) prior to entry into the
reinsurance agreement and not more than semiannually thereafter, information
regarding the assuming insurer's assumed reinsurance by ceding insurer, ceded
reinsurance by the assuming insurer, and reinsurance recoverable on paid and
unpaid losses by the assuming insurer to allow for the evaluation of the
criteria set forth in clause (6);
(6) the assuming insurer must maintain
a practice of prompt payment of claims under reinsurance agreements. The lack of prompt payment will be evidenced
if any of the following criteria is met:
(i) more than 15 percent of the
reinsurance recoverables from the assuming insurer are overdue and in dispute
as reported to the commissioner;
(ii) more than 15 percent of the
assuming insurer's ceding insurers or reinsurers have overdue reinsurance
recoverable on paid losses of 90 days or more which are not in dispute and
which exceed for each ceding insurer $100,000, or as otherwise specified in a
covered agreement; or
(iii) the aggregate amount of reinsurance
recoverable on paid losses which are not in dispute, but are overdue by 90 days
or more, exceeds $50,000,000, or as otherwise specified in a covered agreement;
(7)
the assuming insurer's supervisory authority must confirm to the commissioner
by December 31, 2021, and annually thereafter, or at the annual date otherwise
statutorily reported to the reciprocal jurisdiction, that the assuming insurer
complies with the requirements set forth in clauses (2) and (3); and
(8) nothing in this subdivision precludes
an assuming insurer from providing the commissioner with information on a
voluntary basis.
(b) The commissioner shall timely
create and publish a list of reciprocal jurisdictions. The commissioner's list shall include any
reciprocal jurisdiction as defined under paragraph (a), clause (1), items (i)
and (ii), and shall consider any other reciprocal jurisdiction included on the
NAIC list. The commissioner may approve
a jurisdiction that does not appear on the NAIC list of reciprocal
jurisdictions in accordance with criteria developed under rules issued by the
commissioner. The commissioner may
remove a jurisdiction from the list of reciprocal jurisdictions upon a
determination that the jurisdiction no longer meets the requirements of a
reciprocal jurisdiction, in accordance with a process set forth in rules issued
by the commissioner, except that the commissioner shall not remove from the
list a reciprocal jurisdiction as defined under paragraph (a), clause (1),
items (i) and (ii). Upon removal of a
reciprocal jurisdiction from the list, credit for reinsurance ceded to an
assuming insurer which has its home office or is domiciled in that jurisdiction
shall be allowed, if otherwise allowed pursuant to law.
(c) The commissioner shall timely
create and publish a list of assuming insurers that have satisfied the
conditions set forth in this subdivision and to which cessions shall be granted
credit in accordance with this subdivision.
The commissioner may add an assuming insurer to the list if an NAIC
accredited jurisdiction has added the assuming insurer to a list of assuming
insurers or if, upon initial eligibility, the assuming insurer submits the
information to the commissioner as required under paragraph (a), clause (4),
and complies with any additional requirements that the commissioner may impose
by rule, except to the extent that they conflict with an applicable covered
agreement.
(i) If an NAIC-accredited jurisdiction
has determined that the conditions set forth in paragraph (a), clause (2), have
been met, the commissioner has the discretion to defer to that jurisdiction's
determination, and add such assuming insurer to the list of assuming insurers
to which cessions shall be granted credit in accordance with this paragraph. The commissioner may accept financial
documentation filed with another NAIC-accredited jurisdiction or with the NAIC
in satisfaction of the requirements of paragraph (a), clause (2);
(ii) When requesting that the
commissioner defer to another NAIC-accredited jurisdiction's determination, an
assuming insurer must submit a properly executed Form RJ-1 and additional
information as the commissioner may require.
A state that has received such a request will notify other states
through the NAIC Committee Process and provide relevant information with
respect to the determination of eligibility.
(d) If the commissioner determines that
an assuming insurer no longer meets one or more of the requirements under this
subdivision, the commissioner may revoke or suspend the eligibility of the
assuming insurer for recognition under this subdivision in accordance with
procedures set forth in rule. While an
assuming insurer's eligibility is suspended, no reinsurance agreement issued,
amended, or renewed after the effective date of the suspension qualifies for
credit, except to the extent that the assuming insurer's obligations under the
contract are secured in accordance with this section. If an assuming insurer's eligibility is
revoked, no credit for reinsurance may be granted after the effective date of
the revocation with respect to any reinsurance agreements entered into by the
assuming insurer, including reinsurance agreements entered into prior to the
date of revocation, except to the extent that the assuming insurer's
obligations under the contract are secured in a form acceptable to the
commissioner and consistent with the provisions of this section.
(e) Before denying statement credit or
imposing a requirement to post security with respect to paragraph (d) or
adopting any similar requirement that will have substantially the same
regulatory impact as security, the commissioner shall:
(1)
communicate with the ceding insurer, the assuming insurer, and the assuming
insurer's supervisory authority that the assuming insurer no longer satisfies
one of the conditions listed in paragraph (a), clause (2);
(2) provide the assuming insurer with
30 days from the initial communication to submit a plan to remedy the defect,
and 90 days from the initial communication to remedy the defect, except in
exceptional circumstances in which a shorter period is necessary for
policyholder and other consumer protection;
(3) after the expiration of 90 days or
less, as set out in clause (2), if the commissioner determines that no or
insufficient action was taken by the assuming insurer, the commissioner may
impose any of the requirements as set out in this paragraph; and
(4) provide a written explanation to
the assuming insurer of any of the requirements set out in this paragraph.
(f) If subject to a legal process of
rehabilitation, liquidation, or conservation, as applicable, the ceding
insurer, or its representative, may seek and, if determined appropriate by the
court in which the proceedings are pending, may obtain an order requiring that
the assuming insurer post security for all outstanding ceded liabilities.
(g) Nothing in this subdivision limits
or in any way alters the capacity of parties to a reinsurance agreement to
agree on requirements for security or other terms in the reinsurance agreement,
except as expressly prohibited by applicable law or rule.
(h) Credit may be taken under this
subdivision only for reinsurance agreements entered into, amended, or renewed
on or after the effective date of this subdivision, and only with respect to
losses incurred and reserves reported on or after the later of: (1) the date on which the assuming insurer
has met all eligibility requirements pursuant to this subdivision; and (2) the
effective date of the new reinsurance agreement, amendment, or renewal. This paragraph does not alter or impair a
ceding insurer's right to take credit for reinsurance, to the extent that
credit is not available under this subdivision, as long as the reinsurance
qualifies for credit under any other applicable provision of law. Nothing in this subdivision shall authorize
an assuming insurer to withdraw or reduce the security provided under any
reinsurance agreement, except as permitted by the terms of the agreement. Nothing in this subdivision shall limit, or
in any way alter, the capacity of parties to any reinsurance agreement to
renegotiate the agreement.
EFFECTIVE
DATE. This section is
effective January 1, 2022, and applies to reinsurance contracts entered into or
renewed on or after that date.
Sec. 3. Minnesota Statutes 2020, section 60A.0921, subdivision 2, is amended to read:
Subd. 2. Certification procedure. (a) The commissioner shall post notice on the department's website promptly upon receipt of any application for certification, including instructions on how members of the public may respond to the application. The commissioner may not take final action on the application until at least 30 days after posting the notice.
(b) The commissioner shall issue written notice to an assuming insurer that has applied and been approved as a certified reinsurer. The notice must include the rating assigned the certified reinsurer in accordance with subdivision 1. The commissioner shall publish a list of all certified reinsurers and their ratings.
(c) In order to be eligible for certification, the assuming insurer must:
(1) be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the commissioner under subdivision 3;
(2) maintain capital and surplus, or its equivalent, of no less than $250,000,000 calculated in accordance with paragraph (d), clause (8). This requirement may also be satisfied by an association including incorporated and individual unincorporated underwriters having minimum capital and surplus equivalents net of liabilities of at least $250,000,000 and a central fund containing a balance of at least $250,000,000;
(3) maintain financial strength ratings from two or more rating agencies acceptable to the commissioner. These ratings shall be based on interactive communication between the rating agency and the assuming insurer and shall not be based solely on publicly available information. These financial strength ratings shall be one factor used by the commissioner in determining the rating that is assigned to the assuming insurer. Acceptable rating agencies include the following:
(i) Standard & Poor's;
(ii) Moody's Investors Service;
(iii) Fitch Ratings;
(iv) A.M. Best Company; or
(v) any other nationally recognized statistical rating organization; and
(4) ensure that the certified reinsurer complies with any other requirements reasonably imposed by the commissioner.
(d) Each certified reinsurer shall be rated on a legal entity basis, with due consideration being given to the group rating where appropriate, except that an association including incorporated and individual unincorporated underwriters that has been approved to do business as a single certified reinsurer may be evaluated on the basis of its group rating. Factors that may be considered as part of the evaluation process include, but are not limited to:
(1) certified reinsurer's financial strength rating from an acceptable rating agency. The maximum rating that a certified reinsurer may be assigned will correspond to its financial strength rating as outlined in the table below. The commissioner shall use the lowest financial strength rating received from an approved rating agency in establishing the maximum rating of a certified reinsurer. A failure to obtain or maintain at least two financial strength ratings from acceptable rating agencies will result in loss of eligibility for certification;
Ratings |
Best |
S&P |
Moody's |
Fitch |
Secure - 1 |
A++ |
AAA |
Aaa |
AAA |
Secure - 2 |
A+ |
AA+, AA, AA- |
Aa1, Aa2, Aa3 |
AA+, AA, AA- |
Secure - 3 |
A |
A+, A |
A1, A2 |
A+, A |
Secure - 4 |
A- |
A- |
A3 |
A- |
Secure - 5 |
B++, B- |
BBB+, BBB, BBB- |
Baa1, Baa2, Baa3 |
BBB+, BBB, BBB- |
Vulnerable - 6 |
B, B-C++, C+, C, C-, D, E, F |
BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, R |
Ba1, Ba2, Ba3, B1, B2, B3, Caa, Ca, C |
BB+, BB, BB-, B+, B, B-, CCC+, CC, CCC-, DD |
(2) the business practices of the certified reinsurer in dealing with its ceding insurers, including its record of compliance with reinsurance contractual terms and obligations;
(3) for certified reinsurers domiciled in the United States, a review of the most recent applicable NAIC annual statement;
(4) for certified reinsurers not domiciled in the United States, a review annually of such forms as may be required by the commissioner;
(5) the reputation of the certified reinsurer for prompt payment of claims under reinsurance agreements, based on an analysis of ceding insurers' reporting of overdue reinsurance recoverables, including the proportion of obligations that are more than 90 days past due or are in dispute, with specific attention given to obligations payable to companies that are in administrative supervision or receivership;
(6) regulatory actions against the certified reinsurer;
(7) the report of the independent auditor on the financial statements of the insurance enterprise, on the basis described in clause (8);
(8) for certified reinsurers not domiciled
in the United States, audited financial statements (audited United States GAAP
basis if available, audited IFRS basis statements are allowed, but must include
an audited footnote reconciling equity and net income to a United States GAAP
basis, or, with permission of the commissioner, audited IFRS statements with
reconciliation to United States GAAP certified by an officer of the company). Upon the initial application for certification,
the commissioner will consider audited financial statements for the last three
two years filed with its non-United States jurisdiction supervisor;
(9) the liquidation priority of obligations to a ceding insurer in the certified reinsurer's domiciliary jurisdiction in the context of an insolvency proceeding;
(10) a certified reinsurer's participation in any solvent scheme of arrangement, or similar procedure, which involves United States ceding insurers. The commissioner must receive prior notice from a certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of arrangement; and
(11) other information as determined by the commissioner.
(e) Based on the analysis conducted under paragraph (d), clause (5), of a certified reinsurer's reputation for prompt payment of claims, the commissioner may make appropriate adjustments in the security the certified reinsurer is required to post to protect its liabilities to United States ceding insurers, provided that the commissioner shall, at a minimum, increase the security the certified reinsurer is required to post by one rating level under paragraph (d), clause (1), if the commissioner finds that:
(1) more than 15 percent of the certified reinsurer's ceding insurance clients have overdue reinsurance recoverables on paid losses of 90 days or more which are not in dispute and which exceed $100,000 for each cedent; or
(2) the aggregate amount of reinsurance recoverables on paid losses which are not in dispute that are overdue by 90 days or more exceeds $50,000,000.
(f) The assuming insurer must submit such forms as required by the commissioner as evidence of its submission to the jurisdiction of this state, appoint the commissioner as an agent for service of process in this state, and agree to provide security for 100 percent of the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers if it resists enforcement of a final United States judgment. The commissioner shall not certify an assuming insurer that is domiciled in a jurisdiction that the commissioner has determined does not adequately and promptly enforce final United States judgments or arbitration awards.
(g) The certified reinsurer must agree to meet filing requirements as determined by the commissioner, both with respect to an initial application for certification and on an ongoing basis. All data submitted by certified reinsurers to the commissioner is nonpublic under section 13.02, subdivision 9. The certified reinsurer must file with the commissioner:
(1) a notification within ten days of any regulatory actions taken against the certified reinsurer, any change in the provisions of its domiciliary license, or any change in rating by an approved rating agency, including a statement describing such changes and the reasons therefore;
(2) an annual report regarding reinsurance assumed, in a form determined by the commissioner;
(3) an annual report of the independent auditor on the financial statements of the insurance enterprise, on the basis described in clause (4);
(4) an annual audited financial statement,
regulatory filings, and actuarial opinion filed with the certified reinsurer's
supervisor. Upon the initial
certification, audited financial statements for the last three two
years filed with the certified reinsurer's supervisor;
(5) at least annually, an updated list of all disputed and overdue reinsurance claims regarding reinsurance assumed from United States domestic ceding insurers;
(6) a certification from the certified reinsurer's domestic regulator that the certified reinsurer is in good standing and maintains capital in excess of the jurisdiction's highest regulatory action level; and
(7) any other relevant information as determined by the commissioner.
EFFECTIVE
DATE. This section is
effective January 1, 2022, and applies to reinsurance contracts entered into or
renewed on or after that date.
Sec. 4. Minnesota Statutes 2020, section 60A.14, subdivision 1, is amended to read:
Subdivision 1. Fees other than examination fees. In addition to the fees and charges provided for examinations, the following fees must be paid to the commissioner for deposit in the general fund:
(a) by township mutual fire insurance companies:
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal exchanges:
(1) for filing an application for an initial certification of authority to be admitted to transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, $225
$300;
(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;
(5) for filing bylaws, $75 or amendments thereto, $75;
(6)
for each company's certificate of authority, $575 $750, annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal, valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page, and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life
insurance companies, one cent two cents per $1,000 of insurance
so valued, provided that the fee shall not exceed $13,000 $26,000
per year for any company. The
commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this
state, accept a certificate of valuation from the company's own actuary or from
the commissioner of insurance of the state or territory in which the company is
domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by the commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $30;
(7) for filing forms, rates, and compliance certifications under section 60A.315, $140 per filing, or $125 per filing when submitted via electronic filing system. Filing fees may be paid on a quarterly basis in response to an invoice. Billing and payment may be made electronically;
(8) for annual renewal of surplus lines
insurer license, $300 $400.
The commissioner shall adopt rules to define filings that are subject to a fee.
Sec. 5. [60A.985]
DEFINITIONS.
Subdivision 1. Terms. As used in sections 60A.985 to
60A.9857, the following terms have the meanings given.
Subd. 2. Authorized
individual. "Authorized
individual" means an individual known to and screened by the licensee and
determined to be necessary and appropriate to have access to the nonpublic
information held by the licensee and its information systems.
Subd. 3. Consumer. "Consumer" means an
individual, including but not limited to an applicant, policyholder, insured,
beneficiary, claimant, and certificate holder who is a resident of this state
and whose nonpublic information is in a licensee's possession, custody, or
control.
Subd. 4. Cybersecurity
event. "Cybersecurity
event" means an event resulting in unauthorized access to, or disruption
or misuse of, an information system or nonpublic information stored on an
information system.
Cybersecurity event does not include the
unauthorized acquisition of encrypted nonpublic information if the encryption,
process, or key is not also acquired, released, or used without authorization.
Cybersecurity event does not include an
event with regard to which the licensee has determined that the nonpublic
information accessed by an unauthorized person has not been used or released
and has been returned or destroyed.
Subd. 5. Encrypted. "Encrypted" means the
transformation of data into a form which results in a low probability of
assigning meaning without the use of a protective process or key.
Subd. 6. Information
security program. "Information
security program" means the administrative, technical, and physical
safeguards that a licensee uses to access, collect, distribute, process,
protect, store, use, transmit, dispose of, or otherwise handle nonpublic
information.
Subd. 7. Information
system. "Information
system" means a discrete set of electronic information resources organized
for the collection, processing, maintenance, use, sharing, dissemination, or disposition
of nonpublic electronic information, as well as any specialized system such as
industrial or process controls systems, telephone switching and private branch
exchange systems, and environmental control systems.
Subd. 8. Licensee. "Licensee" means any person
licensed, authorized to operate, or registered, or required to be licensed,
authorized, or registered by the Department of Commerce or the Department of
Health under chapters 59A to 62M and 62Q to 79A.
Subd. 9. Multifactor
authentication. "Multifactor
authentication" means authentication through verification of at least two
of the following types of authentication factors:
(1) knowledge factors, such as a
password;
(2) possession factors, such as a token
or text message on a mobile phone; or
(3) inherence factors, such as a
biometric characteristic.
Subd. 10. Nonpublic
information. "Nonpublic
information" means electronic information that is not publicly available
information and is:
(1) any information concerning a
consumer which because of name, number, personal mark, or other identifier can
be used to identify the consumer, in combination with any one or more of the
following data elements:
(i) Social Security number;
(ii) driver's license number or
nondriver identification card number;
(iii) financial account number, credit
card number, or debit card number;
(iv) any security code, access code, or
password that would permit access to a consumer's financial account; or
(v) biometric records; or
(2) any information or data, except age
or gender, in any form or medium created by or derived from a health care
provider or a consumer that can be used to identify a particular consumer and
that relates to:
(i) the past, present, or future
physical, mental, or behavioral health or condition of any consumer or a member
of the consumer's family;
(ii) the provision of health care to
any consumer; or
(iii) payment for the provision of
health care to any consumer.
Subd. 11. Person. "Person" means any
individual or any nongovernmental entity, including but not limited to any
nongovernmental partnership, corporation, branch, agency, or association.
Subd. 12. Publicly
available information. "Publicly
available information" means any information that a licensee has a
reasonable basis to believe is lawfully made available to the general public
from: federal, state, or local
government records; widely distributed media; or disclosures to the general
public that are required to be made by federal, state, or local law.
For the purposes of this definition, a
licensee has a reasonable basis to believe that information is lawfully made
available to the general public if the licensee has taken steps to determine:
(1) that the information is of the type
that is available to the general public; and
(2) whether a consumer can direct that
the information not be made available to the general public and, if so, that
such consumer has not done so.
Subd. 13. Risk
assessment. "Risk
assessment" means the risk assessment that each licensee is required to
conduct under section 60A.9853, subdivision 3.
Subd. 14. State. "State" means the state of
Minnesota.
Subd. 15. Third-party
service provider. "Third-party
service provider" means a person, not otherwise defined as a licensee,
that contracts with a licensee to maintain, process, or store nonpublic
information, or is otherwise permitted access to nonpublic information through
its provision of services to the licensee.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 6. [60A.9851]
INFORMATION SECURITY PROGRAM.
Subdivision 1. Implementation
of an information security program. Commensurate
with the size and complexity of the licensee, the nature and scope of the
licensee's activities, including its use of third-party service providers, and
the sensitivity of the nonpublic information used by the licensee or in the
licensee's possession, custody, or control, each licensee shall develop,
implement, and maintain a comprehensive written information security program
based on the licensee's risk assessment and that contains administrative,
technical, and physical safeguards for the protection of nonpublic information
and the licensee's information system.
Subd. 2. Objectives
of an information security program. A
licensee's information security program shall be designed to:
(1) protect the security and
confidentiality of nonpublic information and the security of the information
system;
(2) protect against any threats or
hazards to the security or integrity of nonpublic information and the
information system;
(3) protect against unauthorized access
to, or use of, nonpublic information, and minimize the likelihood of harm to
any consumer; and
(4) define and periodically reevaluate
a schedule for retention of nonpublic information and a mechanism for its
destruction when no longer needed.
Subd. 3. Risk
assessment. The licensee
shall:
(1) designate one or more employees, an
affiliate, or an outside vendor authorized to act on behalf of the licensee who
is responsible for the information security program;
(2) identify reasonably foreseeable
internal or external threats that could result in unauthorized access,
transmission, disclosure, misuse, alteration, or destruction of nonpublic
information, including threats to the security of information systems and
nonpublic information that are accessible to, or held by, third-party service
providers;
(3) assess the likelihood and potential
damage of the threats identified pursuant to clause (2), taking into
consideration the sensitivity of the nonpublic information;
(4) assess the sufficiency of policies,
procedures, information systems, and other safeguards in place to manage these
threats, including consideration of threats in each relevant area of the
licensee's operations, including:
(i) employee training and management;
(ii) information systems, including
network and software design, as well as information classification, governance,
processing, storage, transmission, and disposal; and
(iii) detecting, preventing, and
responding to attacks, intrusions, or other systems failures; and
(5) implement information safeguards to
manage the threats identified in its ongoing assessment, and no less than
annually, assess the effectiveness of the safeguards' key controls, systems,
and procedures.
Subd. 4. Risk
management. Based on its risk
assessment, the licensee shall:
(1) design its information security
program to mitigate the identified risks, commensurate with the size and
complexity of the licensee, the nature and scope of the licensee's activities,
including its use of third-party service providers, and the sensitivity of the
nonpublic information used by the licensee or in the licensee's possession,
custody, or control;
(2) determine which of the following
security measures are appropriate and implement any appropriate security
measures:
(i) place access controls on
information systems, including controls to authenticate and permit access only
to authorized individuals, to protect against the unauthorized acquisition of
nonpublic information;
(ii) identify and manage the data,
personnel, devices, systems, and facilities that enable the organization to
achieve business purposes in accordance with their relative importance to
business objectives and the organization's risk strategy;
(iii) restrict physical access to
nonpublic information to authorized individuals only;
(iv) protect, by encryption or other
appropriate means, all nonpublic information while being transmitted over an
external network and all nonpublic information stored on a laptop computer or
other portable computing or storage device or media;
(v) adopt secure development practices
for in-house developed applications utilized by the licensee;
(vi) modify the information system in
accordance with the licensee's information security program;
(vii)
utilize effective controls, which may include multifactor authentication
procedures for any authorized individual accessing nonpublic information;
(viii) regularly test and monitor
systems and procedures to detect actual and attempted attacks on, or intrusions
into, information systems;
(ix) include audit trails within the
information security program designed to detect and respond to cybersecurity
events and designed to reconstruct material financial transactions sufficient to
support normal operations and obligations of the licensee;
(x) implement measures to protect
against destruction, loss, or damage of nonpublic information due to
environmental hazards, such as fire and water damage, other catastrophes, or
technological failures; and
(xi) develop, implement, and maintain
procedures for the secure disposal of nonpublic information in any format;
(3) include cybersecurity risks in the
licensee's enterprise risk management process;
(4) stay informed regarding emerging threats
or vulnerabilities and utilize reasonable security measures when sharing
information relative to the character of the sharing and the type of
information shared; and
(5) provide its personnel with
cybersecurity awareness training that is updated as necessary to reflect risks
identified by the licensee in the risk assessment.
Subd. 5. Oversight
by board of directors. If the
licensee has a board of directors, the board or an appropriate committee of the
board shall, at a minimum:
(1) require the licensee's executive
management or its delegates to develop, implement, and maintain the licensee's
information security program;
(2) require the licensee's executive
management or its delegates to report in writing, at least annually, the
following information:
(i) the overall status of the
information security program and the licensee's compliance with this act; and
(ii) material matters related to the
information security program, addressing issues such as risk assessment, risk
management and control decisions, third-party service provider arrangements,
results of testing, cybersecurity events or violations and management's
responses thereto, and recommendations for changes in the information security
program; and
(3) if executive management delegates
any of its responsibilities under this section, it shall oversee the
development, implementation, and maintenance of the licensee's information
security program prepared by the delegate and shall receive a report from the
delegate complying with the requirements of the report to the board of
directors.
Subd. 6. Oversight
of third-party service provider arrangements. (a) A licensee shall exercise due
diligence in selecting its third-party service provider.
(b) A licensee shall require a
third-party service provider to implement appropriate administrative,
technical, and physical measures to protect and secure the information systems
and nonpublic information that are accessible to, or held by, the third-party
service provider.
Subd. 7. Program
adjustments. The licensee
shall monitor, evaluate, and adjust, as appropriate, the information security
program consistent with any relevant changes in technology, the sensitivity of
its nonpublic information, internal or external threats to information, and the
licensee's own changing business arrangements, such as mergers and
acquisitions, alliances and joint ventures, outsourcing arrangements, and
changes to information systems.
Subd. 8. Incident
response plan. (a) As part of
its information security program, each licensee shall establish a written
incident response plan designed to promptly respond to, and recover from, any
cybersecurity event that compromises the confidentiality, integrity, or
availability of nonpublic information in its possession, the licensee's
information systems, or the continuing functionality of any aspect of the
licensee's business or operations.
(b) The incident response plan shall
address the following areas:
(1) the internal process for responding
to a cybersecurity event;
(2) the goals of the incident response
plan;
(3) the definition of clear roles,
responsibilities, and levels of decision-making authority;
(4) external and internal
communications and information sharing;
(5) identification of requirements for
the remediation of any identified weaknesses in information systems and
associated controls;
(6) documentation and reporting
regarding cybersecurity events and related incident response activities; and
(7) the evaluation and revision, as
necessary, of the incident response plan following a cybersecurity event.
Subd. 9. Annual
certification to commissioner. (a)
Subject to paragraph (b), by April 15 of each year, an insurer domiciled in
this state shall certify in writing to the commissioner that the insurer is in
compliance with the requirements set forth in this section. Each insurer shall maintain all records,
schedules, and data supporting this certificate for a period of five years and
shall permit examination by the commissioner.
To the extent an insurer has identified areas, systems, or processes
that require material improvement, updating, or redesign, the insurer shall
document the identification and the remedial efforts planned and underway to
address such areas, systems, or processes.
Such documentation must be available for inspection by the commissioner.
(b) The commissioner must post on the
department's website, no later than 60 days prior to the certification required
by paragraph (a), the form and manner of submission required and any instructions
necessary to prepare the certification.
EFFECTIVE
DATE. This section is
effective August 1, 2021. Licensees have
one year from the effective date to implement subdivisions 1 to 5 and 7 to 9,
and two years from the effective date to implement subdivision 6.
Sec. 7. [60A.9852]
INVESTIGATION OF A CYBERSECURITY EVENT.
Subdivision 1. Prompt
investigation. If the
licensee learns that a cybersecurity event has or may have occurred, the
licensee, or an outside vendor or service provider designated to act on behalf
of the licensee, shall conduct a prompt investigation.
Subd. 2. Investigation
contents. During the
investigation, the licensee, or an outside vendor or service provider
designated to act on behalf of the licensee, shall, at a minimum and to the
extent possible:
(1) determine whether a cybersecurity
event has occurred;
(2) assess the nature and scope of the
cybersecurity event, if any;
(3) identify whether any nonpublic
information was involved in the cybersecurity event and, if so, what nonpublic
information was involved; and
(4) perform or oversee reasonable
measures to restore the security of the information systems compromised in the
cybersecurity event in order to prevent further unauthorized acquisition,
release, or use of nonpublic information in the licensee's possession, custody,
or control.
Subd. 3. Third-party
systems. If the licensee
learns that a cybersecurity event has or may have occurred in a system
maintained by a third-party service provider, the licensee will complete the
steps listed in subdivision 2 or confirm and document that the third-party
service provider has completed those steps.
Subd. 4. Records. The licensee shall maintain records
concerning all cybersecurity events for a period of at least five years from
the date of the cybersecurity event and shall produce those records upon demand
of the commissioner.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 8. [60A.9853]
NOTIFICATION OF A CYBERSECURITY EVENT.
Subdivision 1. Notification
to the commissioner. Each
licensee shall notify the commissioner of commerce or commissioner of health,
whichever commissioner otherwise regulates the licensee, without unreasonable
delay but in no event later than three business days from a determination that
a cybersecurity event has occurred when either of the following criteria has
been met:
(1) this state is the licensee's state
of domicile, in the case of an insurer, or this state is the licensee's home
state, in the case of a producer, as those terms are defined in chapter 60K and
the cybersecurity event has a reasonable likelihood of materially harming:
(i) any consumer residing in this
state; or
(ii) any part of the normal operations
of the licensee; or
(2) the licensee reasonably believes
that the nonpublic information involved is of 250 or more consumers residing in
this state and that is either of the following:
(i) a cybersecurity event impacting the
licensee of which notice is required to be provided to any government body,
self-regulatory agency, or any other supervisory body pursuant to any state or
federal law; or
(ii) a cybersecurity event that has a
reasonable likelihood of materially harming:
(A) any consumer residing in this
state; or
(B) any part of the normal operations
of the licensee.
Subd. 2. Information;
notification. A licensee
making the notification required under subdivision 1 shall provide the
information in electronic form as directed by the commissioner. The licensee shall have a continuing
obligation to update and supplement initial and subsequent notifications to the
commissioner concerning material changes to previously provided information
relating to the cybersecurity event. The
licensee shall provide as much of the following information as possible:
(1) date of the cybersecurity event;
(2) description of how the information
was exposed, lost, stolen, or breached, including the specific roles and
responsibilities of third-party service providers, if any;
(3) how the cybersecurity event was
discovered;
(4) whether any lost, stolen, or
breached information has been recovered and, if so, how this was done;
(5) the identity of the source of the
cybersecurity event;
(6) whether the licensee has filed a
police report or has notified any regulatory, government, or law enforcement
agencies and, if so, when such notification was provided;
(7) description of the specific types of
information acquired without authorization.
Specific types of information means particular data elements including,
for example, types of medical information, types of financial information, or
types of information allowing identification of the consumer;
(8) the period during which the
information system was compromised by the cybersecurity event;
(9) the number of total consumers in
this state affected by the cybersecurity event.
The licensee shall provide the best estimate in the initial report to
the commissioner and update this estimate with each subsequent report to the
commissioner pursuant to this section;
(10) the results of any internal review
identifying a lapse in either automated controls or internal procedures, or
confirming that all automated controls or internal procedures were followed;
(11) description of efforts being
undertaken to remediate the situation which permitted the cybersecurity event
to occur;
(12) a copy of the licensee's privacy
policy and a statement outlining the steps the licensee will take to
investigate and notify consumers affected by the cybersecurity event; and
(13) name of a contact person who is familiar
with the cybersecurity event and authorized to act for the licensee.
Subd. 3. Notification
to consumers. (a) If a
licensee is required to submit a report to the commissioner under subdivision
1, the licensee shall notify any consumer residing in Minnesota if, as a result
of the cybersecurity event reported to the commissioner, the consumer's
nonpublic information was or is reasonably believed to have been acquired by an
unauthorized person, and there is a reasonable likelihood of material harm to
the consumer as a result of the cybersecurity event. Consumer notification is not required for a
cybersecurity event resulting from the good faith acquisition of nonpublic
information by an employee or agent of the licensee for the purposes of the
licensee's business, provided the nonpublic information is not used for a
purpose other than the licensee's business or subject to further unauthorized
disclosure. The notification must be
made in the most expedient time possible and without unreasonable delay,
consistent with the legitimate needs of law enforcement or with any measures
necessary to determine the scope of the breach, identify the individuals
affected, and restore the reasonable integrity of the data system. The notification may be delayed to a date
certain if the commissioner determines that providing the notice impedes a
criminal investigation. The licensee
shall provide a copy of the notice to the commissioner.
(b)
For purposes of this subdivision, notice required under paragraph (a) must be
provided by one of the following methods:
(1) written notice to the consumer's
most recent address in the licensee's records;
(2) electronic notice, if the licensee's
primary method of communication with the consumer is by electronic means or if
the notice provided is consistent with the provisions regarding electronic
records and signatures in United States Code, title 15, section 7001; or
(3) if the cost of providing notice
exceeds $250,000, the affected class of consumers to be notified exceeds 500,000,
or the licensee does not have sufficient contact information for the subject
consumers, notice as follows:
(i) email notice when the licensee has
an email address for the subject consumers;
(ii) conspicuous posting of the notice
on the website page of the licensee; and
(iii) notification to major statewide
media.
(c) Notwithstanding paragraph (b), a
licensee that maintains its own notification procedure as part of its
information security program that is consistent with the timing requirements of
this subdivision is deemed to comply with the notification requirements if the
licensee notifies subject consumers in accordance with its program.
(d) A waiver of the requirements under
this subdivision is contrary to public policy, and is void and unenforceable.
Subd. 4. Notice
regarding cybersecurity events of third-party service providers. (a) In the case of a cybersecurity
event in a system maintained by a third-party service provider, of which the
licensee has become aware, the licensee shall treat such event as it would
under subdivision 1 unless the third-party service provider provides the notice
required under subdivision 1.
(b) The computation of a licensee's
deadlines shall begin on the day after the third-party service provider
notifies the licensee of the cybersecurity event or the licensee otherwise has
actual knowledge of the cybersecurity event, whichever is sooner.
(c) Nothing in this act shall prevent or
abrogate an agreement between a licensee and another licensee, a third‑party
service provider, or any other party to fulfill any of the investigation
requirements imposed under section 60A.9854 or notice requirements imposed
under this section.
Subd. 5. Notice
regarding cybersecurity events of reinsurers to insurers. (a) In the case of a cybersecurity
event involving nonpublic information that is used by the licensee that is
acting as an assuming insurer or in the possession, custody, or control of a
licensee that is acting as an assuming insurer and that does not have a direct
contractual relationship with the affected consumers, the assuming insurer
shall notify its affected ceding insurers and the commissioner of its state of
domicile within three business days of making the determination that a
cybersecurity event has occurred.
(b) The ceding insurers that have a
direct contractual relationship with affected consumers shall fulfill the
consumer notification requirements imposed under subdivision 3 and any other
notification requirements relating to a cybersecurity event imposed under this
section.
(c) In the case of a cybersecurity event
involving nonpublic information that is in the possession, custody, or control
of a third-party service provider of a licensee that is an assuming insurer,
the assuming insurer shall notify its affected ceding insurers and the
commissioner of its state of domicile within three business days of receiving
notice from its third-party service provider that a cybersecurity event has
occurred.
(d)
The ceding insurers that have a direct contractual relationship with affected
consumers shall fulfill the consumer notification requirements imposed under
subdivision 3 and any other notification requirements relating to a
cybersecurity event imposed under this section.
(e) Any licensee acting as an assuming insurer
shall have no other notice obligations relating to a cybersecurity event or
other data breach under this section.
Subd. 6. Notice
regarding cybersecurity events of insurers to producers of record. (a) In the case of a cybersecurity
event involving nonpublic information that is in the possession, custody, or
control of a licensee that is an insurer or its third-party service provider
and for which a consumer accessed the insurer's services through an independent
insurance producer, the insurer shall notify the producers of record of all
affected consumers no later than the time at which notice is provided to the
affected consumers.
(b) The insurer is excused from this
obligation for those instances in which it does not have the current producer
of record information for any individual consumer or in those instances in
which the producer of record is no longer appointed to sell, solicit, or
negotiate on behalf of the insurer.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 9. [60A.9854]
POWER OF COMMISSIONER.
(a) The commissioner of commerce or
commissioner of health, whichever commissioner otherwise regulates the
licensee, shall have power to examine and investigate into the affairs of any
licensee to determine whether the licensee has been or is engaged in any
conduct in violation of sections 60A.985 to 60A.9857. This power is in addition to the powers which
the commissioner has under section 60A.031.
Any such investigation or examination shall be conducted pursuant to
section 60A.031.
(b) Whenever the commissioner of
commerce or commissioner of health has reason to believe that a licensee has
been or is engaged in conduct in this state which violates sections 60A.985 to
60A.9857, the commissioner of commerce or commissioner of health may take
action that is necessary or appropriate to enforce those sections.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 10. [60A.9855]
CONFIDENTIALITY.
Subdivision 1. Licensee
information. Any documents,
materials, or other information in the control or possession of the department
that are furnished by a licensee or an employee or agent thereof acting on
behalf of a licensee pursuant to section 60A.9851, subdivision 9; section
60A.9853, subdivision 2, clauses (2), (3), (4), (5), (8), (10), and (11); or
that are obtained by the commissioner in an investigation or examination
pursuant to section 60A.9854 shall be classified as confidential, protected
nonpublic, or both; shall not be subject to subpoena; and shall not be subject
to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to
use the documents, materials, or other information in the furtherance of any
regulatory or legal action brought as a part of the commissioner's duties.
Subd. 2. Certain
testimony prohibited. Neither
the commissioner nor any person who received documents, materials, or other
information while acting under the authority of the commissioner shall be
permitted or required to testify in any private civil action concerning any
confidential documents, materials, or information subject to subdivision 1.
Subd. 3. Information
sharing. In order to assist
in the performance of the commissioner's duties under this act, the
commissioner:
(1) may share documents, materials, or
other information, including the confidential and privileged documents,
materials, or information subject to subdivision 1, with other state, federal,
and international regulatory agencies, with the National Association of Insurance
Commissioners, its affiliates or subsidiaries, and with state, federal, and
international law enforcement authorities, provided that the recipient agrees
in writing to maintain the confidentiality and privileged status of the
document, material, or other information;
(2) may receive documents, materials,
or information, including otherwise confidential and privileged documents,
materials, or information, from the National Association of Insurance
Commissioners, its affiliates or subsidiaries, and from regulatory and law
enforcement officials of other foreign or domestic jurisdictions, and shall
maintain as confidential or privileged any document, material, or information
received with notice or the understanding that it is confidential or privileged
under the laws of the jurisdiction that is the source of the document,
material, or information;
(3) may share documents, materials, or
other information subject to subdivision 1, with a third-party consultant or
vendor provided the consultant agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other
information; and
(4) may enter into agreements governing
sharing and use of information consistent with this subdivision.
Subd. 4. No
waiver of privilege or confidentiality.
No waiver of any applicable privilege or claim of confidentiality
in the documents, materials, or information shall occur as a result of
disclosure to the commissioner under this section or as a result of sharing as
authorized in subdivision 3. Any
document, material, or information disclosed to the commissioner under this
section about a cybersecurity event must be retained and preserved by the
licensee for the time period under section 541.05, or longer if required by the
licensee's document retention policy.
Subd. 5. Certain
actions public. Nothing in
sections 60A.985 to 60A.9857 shall prohibit the commissioner from releasing
final, adjudicated actions that are open to public inspection pursuant to
chapter 13 to a database or other clearinghouse service maintained by the
National Association of Insurance Commissioners, its affiliates, or
subsidiaries.
Subd. 6. Classification,
protection, and use of information by others. Documents, materials, or other
information in the possession or control of the National Association of
Insurance Commissioners or a third-party consultant pursuant to sections
60A.985 to 60A.9857 are classified as confidential, protected nonpublic, and
privileged; are not subject to subpoena; and are not subject to discovery or
admissible in evidence in a private civil action.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 11. [60A.9856]
EXCEPTIONS.
Subdivision 1. Generally. The following exceptions shall apply
to sections 60A.985 to 60A.9857:
(1) a licensee with fewer than 25
employees is exempt from sections 60A.9851 and 60A.9852;
(2) a licensee subject to and in
compliance with the Health Insurance Portability and Accountability Act, Public
Law 104-191, 110 Stat. 1936 (HIPAA), is considered to comply with sections
60A.9851, 60A.9852, and 60A.9853, subdivisions 3 to 5, provided the licensee
submits a written statement certifying its compliance with HIPAA;
(3)
a licensee affiliated with a depository institution that maintains an
information security program in compliance with the interagency guidelines
establishing standards for safeguarding customer information as set forth
pursuant to United States Code, title 15, sections 6801 and 6805, shall be
considered to meet the requirements of section 60A.9851 provided that the
licensee produce, upon request, documentation satisfactory to the commission
that independently validates the affiliated depository institution's adoption
of an information security program that satisfies the interagency guidelines;
(4) an employee, agent, representative,
or designee of a licensee, who is also a licensee, is exempt from sections
60A.9851 and 60A.9852 and need not develop its own information security program
to the extent that the employee, agent, representative, or designee is covered
by the information security program of the other licensee; and
(5) an employee, agent, representative,
or designee of a producer licensee, as defined under section 60K.31,
subdivision 6, who is also a licensee, is exempt from sections 60A.985 to
60A.9857.
Subd. 2. Exemption
lapse; compliance. In the
event that a licensee ceases to qualify for an exception, such licensee shall
have 180 days to comply with this act.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 12. [60A.9857]
PENALTIES.
In the case of a violation of sections
60A.985 to 60A.9856, a licensee may be penalized in accordance with section
60A.052.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 13. Minnesota Statutes 2020, section 61A.245, subdivision 4, is amended to read:
Subd. 4. Minimum values. The minimum values as specified in subdivisions 5, 6, 7, 8 and 10 of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subdivision.
(a) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to that time at rates of interest as indicated in paragraph (b) of the net considerations, as defined in this subdivision, paid prior to that time, decreased by the sum of clauses (1) through (4):
(1) any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in paragraph (b);
(2) an annual contract charge of $50, accumulated at rates of interest as indicated in paragraph (b);
(3) any premium tax paid by the company for the contract and not subsequently credited back to the company, such as upon early termination of the contract, in which case this decrease must not be taken, accumulated at rates of interest as indicated in paragraph (b); and
(4) the amount of any indebtedness to the company on the contract, including interest due and accrued.
The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to 87.5 percent of the gross considerations credited to the contract during that contract year.
(b) The interest rate used in determining minimum nonforfeiture amounts must be an annual rate of interest determined as the lesser of three percent per annum and the following, which must be specified in the contract if the interest rate will be reset:
(1) the five-year constant maturity treasury rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest 1/20 of one percent, specified in the contract no longer than 15 months prior to the contract issue date or redetermination date under clause (4);
(2) reduced by 125 basis points;
(3) where the resulting interest rate is
not less than one 0.15 percent; and
(4) the interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis, and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date.
(c) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in clause (2) by up to an additional 100 basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction must not exceed the market value of the benefit. The commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.
EFFECTIVE
DATE. This section is
effective the day following enactment.
Sec. 14. Minnesota Statutes 2020, section 62J.23, subdivision 2, is amended to read:
Subd. 2. Restrictions. (a) From July 1, 1992, until rules are adopted by the commissioner under this section, the restrictions in the federal Medicare antikickback statutes in section 1128B(b) of the Social Security Act, United States Code, title 42, section 1320a-7b(b), and rules adopted under the federal statutes, apply to all persons in the state, regardless of whether the person participates in any state health care program.
(b) Nothing in paragraph (a) shall be construed to prohibit an individual from receiving a discount or other reduction in price or a limited-time free supply or samples of a prescription drug, medical supply, or medical equipment offered by a pharmaceutical manufacturer, medical supply or device manufacturer, health plan company, or pharmacy benefit manager, so long as:
(1) the discount or reduction in price is provided to the individual in connection with the purchase of a prescription drug, medical supply, or medical equipment prescribed for that individual;
(2) it otherwise complies with the requirements of state and federal law applicable to enrollees of state and federal public health care programs;
(3) the discount or reduction in price does not exceed the amount paid directly by the individual for the prescription drug, medical supply, or medical equipment; and
(4) the limited-time free supply or samples are provided by a physician, advanced practice registered nurse, or pharmacist, as provided by the federal Prescription Drug Marketing Act.
For purposes of this paragraph, "prescription drug" includes prescription drugs that are administered through infusion, injection, or other parenteral methods, and related services and supplies.
(c) No benefit, reward, remuneration, or incentive for continued product use may be provided to an individual or an individual's family by a pharmaceutical manufacturer, medical supply or device manufacturer, or pharmacy benefit manager, except that this prohibition does not apply to:
(1) activities permitted under paragraph (b);
(2) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan company, or pharmacy benefit manager providing to a patient, at a discount or reduced price or free of charge, ancillary products necessary for treatment of the medical condition for which the prescription drug, medical supply, or medical equipment was prescribed or provided; and
(3) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan company, or pharmacy benefit manager providing to a patient a trinket or memento of insignificant value.
(d) Nothing in this subdivision shall be construed to prohibit a health plan company from offering a tiered formulary with different co-payment or cost-sharing amounts for different drugs.
Sec. 15. [62Q.472]
SCREENING AND TESTING FOR OPIOIDS.
(a) A health plan company shall not
place a lifetime or annual limit on screenings and urinalysis testing for
opioids for an enrollee in an inpatient or outpatient substance use disorder
treatment program when the screening or testing is ordered by a health care
provider and performed by an accredited clinical laboratory. A health plan company is not prohibited from
conducting a medical necessity review when screenings or urinalysis testing for
an enrollee exceeds 24 tests in any 12-month period.
(b) This section does not apply to
managed care plans or county-based purchasing plans when the plan provides
coverage to public health care program enrollees under chapter 256B or 256L.
EFFECTIVE
DATE. This section is
effective January 1, 2022, and applies to health plans offered, issued, or
renewed on or after that date.
Sec. 16. Minnesota Statutes 2020, section 256B.0625, subdivision 10, is amended to read:
Subd. 10. Laboratory and x-ray services. (a) Medical assistance covers laboratory and x-ray services.
(b) Medical assistance covers screening
and urinalysis tests for opioids without lifetime or annual limits.
EFFECTIVE
DATE. This section is
effective January 1, 2022.
Sec. 17. REPEALER.
Minnesota Statutes 2020, sections
60A.98; 60A.981; and 60A.982, are repealed.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
ARTICLE 4
CONSUMER PROTECTION
Section 1. Minnesota Statutes 2020, section 13.712, is amended by adding a subdivision to read:
Subd. 7. Student
loan servicers. Data
collected, created, received, maintained, or disseminated under chapter 58B are
governed by section 58B.10.
Sec. 2. Minnesota Statutes 2020, section 47.59, subdivision 2, is amended to read:
Subd. 2. Application. Extensions of credit or purchases of
extensions of credit by financial institutions under sections 47.20, 47.21,
47.201, 47.204, 47.58, 47.60, 48.153, 48.185, 48.195, 59A.01 to 59A.15,
334.01, 334.011, 334.012, 334.022, 334.06, and 334.061 to 334.19 may, but need
not, be made according to those sections in lieu of the authority set forth in
this section to the extent those sections authorize the financial institution
to make extensions of credit or purchase extensions of credit under those
sections. If a financial institution
elects to make an extension of credit or to purchase an extension of credit
under those other sections, the extension of credit or the purchase of an
extension of credit is subject to those sections and not this section, except
this subdivision, and except as expressly provided in those sections. A financial institution may also charge an
organization a rate of interest and any charges agreed to by the organization
and may calculate and collect finance and other charges in any manner agreed to
by that organization. Except for
extensions of credit a financial institution elects to make under section
334.01, 334.011, 334.012, 334.022, 334.06, or 334.061 to 334.19, chapter 334
does not apply to extensions of credit made according to this section or the
sections listed in this subdivision. This
subdivision does not authorize a financial institution to extend credit or
purchase an extension of credit under any of the sections listed in this
subdivision if the financial institution is not authorized to do so under those
sections. A financial institution
extending credit under any of the sections listed in this subdivision shall
specify in the promissory note, contract, or other loan document the section
under which the extension of credit is made.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 3. Minnesota Statutes 2020, section 47.60, subdivision 2, is amended to read:
Subd. 2. Authorization,
terms, conditions, and prohibitions. (a)
In lieu of the interest, finance charges, or fees in any other law, A
consumer small loan lender may charge the following: interest,
finance charges, and fees. The sum of
any interest, finance charges, and fees must not exceed an annual percentage
rate, as defined in section 47.59, subdivision 1, paragraph (b), of 36 percent.
(1) on any amount up to and including
$50, a charge of $5.50 may be added;
(2) on amounts in excess of $50, but not
more than $100, a charge may be added equal to ten percent of the loan proceeds
plus a $5 administrative fee;
(3) on amounts in excess of $100, but
not more than $250, a charge may be added equal to seven percent of the loan
proceeds with a minimum of $10 plus a $5 administrative fee;
(4) for amounts in excess of $250 and
not greater than the maximum in subdivision 1, paragraph (a), a charge may be
added equal to six percent of the loan proceeds with a minimum of $17.50 plus a
$5 administrative fee.
(b) The term of a loan made under this section shall be for no more than 30 calendar days.
(c) After maturity, the contract rate must not exceed 2.75 percent per month of the remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly rate in the contract for each calendar day the balance is outstanding.
(d) No insurance charges or other charges must be permitted to be charged, collected, or imposed on a consumer small loan except as authorized in this section.
(e) On a loan transaction in which cash is advanced in exchange for a personal check, a return check charge may be charged as authorized by section 604.113, subdivision 2, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded or assessed against the borrower.
(f) A loan made under this section must not be repaid by the proceeds of another loan made under this section by the same lender or related interest. The proceeds from a loan made under this section must not be applied to another loan from the same lender or related interest. No loan to a single borrower made pursuant to this section shall be split or divided and no single borrower shall have outstanding more than one loan with the result of collecting a higher charge than permitted by this section or in an aggregate amount of principal exceed at any one time the maximum of $350.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 4. Minnesota Statutes 2020, section 47.601, subdivision 2, is amended to read:
Subd. 2. Consumer short-term loan contract. (a) No contract or agreement between a consumer short-term loan lender and a borrower residing in Minnesota may contain the following:
(1) a provision selecting a law other than Minnesota law under which the contract is construed or enforced;
(2) a provision choosing a forum for dispute resolution other than the state of Minnesota; or
(3) a provision limiting class actions against a consumer short-term lender for violations of subdivision 3 or for making consumer short-term loans:
(i) without a required license issued by the commissioner; or
(ii) in which interest rates, fees, charges,
or loan amounts exceed those allowable under section 47.59, subdivision 6,
or 47.60, subdivision 2, other than by de minimis amounts if no pattern
or practice exists.
(b) Any provision prohibited by paragraph (a) is void and unenforceable.
(c) A consumer short-term loan lender must furnish a copy of the written loan contract to each borrower. The contract and disclosures must be written in the language in which the loan was negotiated with the borrower and must contain:
(1) the name; address, which may not be a post office box; and telephone number of the lender making the consumer short-term loan;
(2) the name and title of the individual employee or representative who signs the contract on behalf of the lender;
(3) an itemization of the fees and interest charges to be paid by the borrower;
(4) in bold, 24-point type, the annual percentage rate as computed under United States Code, chapter 15, section 1606; and
(5) a description of the borrower's payment obligations under the loan.
(d) The holder or assignee of a check or other instrument evidencing an obligation of a borrower in connection with a consumer short-term loan takes the instrument subject to all claims by and defenses of the borrower against the consumer short-term lender.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 5. Minnesota Statutes 2020, section 47.601, subdivision 6, is amended to read:
Subd. 6. Penalties for violation; private right of action. (a) Except for a "bona fide error" as set forth under United States Code, chapter 15, section 1640, subsection (c), an individual or entity who violates subdivision 2 or 3 is liable to the borrower for:
(1) all money collected or received in connection with the loan;
(2) actual, incidental, and consequential damages;
(3) statutory damages of up to $1,000 per violation;
(4) costs, disbursements, and reasonable attorney fees; and
(5) injunctive relief.
(b) In addition to the remedies provided in paragraph (a), a loan is void, and the borrower is not obligated to pay any amounts owing if the loan is made:
(1) by a consumer short-term lender who has not obtained an applicable license from the commissioner;
(2) in violation of any provision of subdivision 2 or 3; or
(3) in which interest, fees, charges, or
loan amounts exceed the interest, fees, charges, or loan amounts allowable
under sections 47.59, subdivision 6, and section 47.60,
subdivision 2.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 6. Minnesota Statutes 2020, section 48.512, subdivision 2, is amended to read:
Subd. 2. Required information. Before opening or authorizing signatory power over a transaction account, a financial intermediary shall require one applicant to provide the following information on an application document signed by the applicant:
(a) full name;
(b) birth date;
(c) address of residence;
(d) address of current employment, if employed;
(e) telephone numbers of residence and place of employment, if any;
(f) Social Security number;
(g) driver's license or identification card
number issued pursuant to section 171.07.
If the applicant does not have a driver's license or identification
card, the applicant may provide an identification document number issued for
identification purposes by any state, federal, or foreign government if the
document includes the applicant's photograph, full name, birth date, and
signature. A valid Wisconsin driver's
license without a photograph may be accepted in satisfaction of the requirement
of this paragraph until January 1, 1985;
(h) whether the applicant has had a transaction account at the same or another financial intermediary within 12 months immediately preceding the application, and if so, the name of the financial intermediary;
(i) whether the applicant has had a transaction account closed by a financial intermediary without the applicant's consent within 12 months immediately preceding the application, and if so, the reason the account was closed; and
(j) whether the applicant has been convicted of a criminal offense because of the use of a check or other similar item within 24 months immediately preceding the application.
A financial intermediary may require an applicant to disclose additional information.
An applicant who makes a false material statement that the applicant does not believe to be true in an application document with respect to information required to be provided by this subdivision is guilty of perjury. The financial intermediary shall notify the applicant of the provisions of this paragraph.
Sec. 7. Minnesota Statutes 2020, section 48.512, subdivision 3, is amended to read:
Subd. 3. Confirm no involuntary closing. (a) Before opening or authorizing signatory power over a transaction account, the financial intermediary shall attempt to verify the information disclosed for subdivision 2, clause (i). Inquiries made to verify this information through persons in the business of providing such information must include an inquiry based on the applicant's identification number provided under subdivision 2, clause (g).
(b) The financial intermediary may
not open or authorize signatory power over a transaction account if (i) the
applicant had a transaction account closed by a financial intermediary without
consent because of issuance by the applicant of dishonored checks within 12
months immediately preceding the application, or (ii) the applicant has been
convicted of a criminal offense because of the use of a check or other similar
item within 24 months immediately preceding the application. This paragraph does not apply to programs
designed to expand access to financial services to individuals who do not
possess a transaction account.
(c) If the transaction account is refused pursuant to this subdivision, the reasons for the refusal shall be given to the applicant in writing and the applicant shall be allowed to provide additional information.
Sec. 8. Minnesota Statutes 2020, section 48.512, subdivision 7, is amended to read:
Subd. 7. Transaction account service charges and charges relating to dishonored checks. (a) The establishment of transaction account service charges and the amounts of the charges not otherwise limited or prescribed by law or rule is a business decision to be made by each financial intermediary according to sound business judgment and safe, sound financial institution operational standards. In establishing transaction account service charges, the financial intermediary may consider, but is not limited to considering:
(1) costs incurred by the institution, plus a profit margin, in providing the service;
(2) the deterrence of misuse by customers of financial institution services;
(3) the establishment of the competitive position of the financial institution in accordance with the institution's marketing strategy; and
(4) maintenance of the safety and soundness of the institution.
(b) Transaction account service charges must be reasonable in relation to these considerations and should be arrived at by each financial intermediary on a competitive basis and not on the basis of any agreement, arrangement, undertaking, or discussion with other financial intermediaries or their officers.
(c)
A financial intermediary may not impose a service charge in excess of $4
$10 for a dishonored check on any person other than the issuer of the
check.
Sec. 9. Minnesota Statutes 2020, section 53.04, subdivision 3a, is amended to read:
Subd. 3a. Loans. (a) The right to make loans, secured or
unsecured, at the rates and on the terms and other conditions permitted under
chapters 47 and 334. Loans made under
this authority must be in amounts in compliance with section 53.05, clause (7). A licensee making a loan under this chapter
secured by a lien on real estate shall comply with the requirements of section
47.20, subdivision 8. A licensee
making a loan that is a consumer small loan, as defined in section 47.60,
subdivision 1, paragraph (a), must comply with section 47.60. A licensee making a loan that is a consumer
short-term loan, as defined in section 47.601, subdivision 1, paragraph (d),
must comply with section 47.601.
(b) Loans made under this subdivision may be secured by real or personal property, or both. If the proceeds of a loan secured by a first lien on the borrower's primary residence are used to finance the purchase of the borrower's primary residence, the loan must comply with the provisions of section 47.20.
(c) An agency or instrumentality of the United States government or a corporation otherwise created by an act of the United States Congress or a lender approved or certified by the secretary of housing and urban development, or approved or certified by the administrator of veterans affairs, or approved or certified by the administrator of the Farmers Home Administration, or approved or certified by the Federal Home Loan Mortgage Corporation, or approved or certified by the Federal National Mortgage Association, that engages in the business of purchasing or taking assignments of mortgage loans and undertakes direct collection of payments from or enforcement of rights against borrowers arising from mortgage loans, is not required to obtain a certificate of authorization under this chapter in order to purchase or take assignments of mortgage loans from persons holding a certificate of authorization under this chapter.
(d) This subdivision does not authorize an industrial loan and thrift company to make loans under an overdraft checking plan.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 10. Minnesota Statutes 2020, section 56.131, subdivision 1, is amended to read:
Subdivision 1. Interest rates and charges. (a) On any loan in a principal amount not exceeding $100,000 or 15 percent of a Minnesota corporate licensee's capital stock and surplus as defined in section 53.015, if greater, a licensee may contract for and receive interest, finance charges, and other charges as provided in section 47.59.
(b) Notwithstanding paragraph (a), a
licensee making a loan that is a consumer small loan, as defined in section 47.60, subdivision 1, paragraph (a),
must comply with section 47.60. A
licensee making a loan that is a consumer short-term loan, as defined in
section 47.601, subdivision 1, paragraph (d), must comply with section 47.601.
(b) (c) With respect to a
loan secured by an interest in real estate, and having a maturity of more than
60 months, the original schedule of installment payments must fully amortize
the principal and interest on the loan. The
original schedule of installment payments for any other loan secured by an interest
in real estate must provide for payment amounts that are sufficient to pay all
interest scheduled to be due on the loan.
(c) (d) A licensee may contract for and
collect a delinquency charge as provided for in section 47.59, subdivision 6,
paragraph (a), clause (4).
(d) (e) A licensee may grant extensions, deferments, or conversions to interest-bearing as provided in section 47.59, subdivision 5.
EFFECTIVE
DATE. This section is
effective August 1, 2021, and applies to consumer short-term loans and small
loans originated on or after that date.
Sec. 11. [58B.01]
TITLE.
This chapter may be cited as the
"Student Loan Borrower Bill of Rights."
Sec. 12. [58B.02]
DEFINITIONS.
Subdivision 1. Scope. For purposes of this chapter, the
following terms have the meanings given them.
Subd. 2. Borrower. "Borrower" means a resident
of this state who has received or agreed to pay a student loan or a person who
shares responsibility with a resident for repaying a student loan.
Subd. 3. Commissioner. "Commissioner" means the
commissioner of commerce.
Subd. 4. Financial
institution. "Financial
institution" means any of the following organized under the laws of this
state, any other state, or the United States:
a bank, bank and trust, trust company with banking powers, savings bank,
savings association, or credit union.
Subd. 5. Person
in control. "Person in
control" means any member of senior management, including owners or
officers, and other persons who directly or indirectly possess the power to direct
or cause the direction of the management policies of an applicant or student
loan servicer under this chapter, regardless of whether the person has any
ownership interest in the applicant or student loan servicer. Control is presumed to exist if a person
directly or indirectly owns, controls, or holds with power to vote ten percent
or more of the voting stock of an applicant or student loan servicer or of a
person who owns, controls, or holds with power to vote ten percent or more of
the voting stock of an applicant or student loan servicer.
Subd. 6. Servicing. "Servicing" means:
(1) receiving any scheduled periodic
payments from a borrower or notification of payments, and applying payments to
the borrower's account pursuant to the terms of the student loan or of the
contract governing servicing;
(2) during a period when no payment is
required on a student loan, maintaining account records for the loan and
communicating with the borrower regarding the loan, on behalf of the loan's
holder; and
(3) interacting with a borrower,
including activities to help prevent default on obligations arising from
student loans, conducted to facilitate the requirements in clauses (1) and (2).
Subd. 7. Student
loan. "Student
loan" means a government, commercial, or foundation loan for actual costs
paid for tuition and reasonable education and living expenses.
Subd. 8. Student
loan servicer. "Student
loan servicer" means any person, wherever located, responsible for the
servicing of any student loan to any borrower, including a nonbank covered
person, as defined in Code of Federal Regulations, title 12, section 1090.101,
who is responsible for the servicing of any student loan to any borrower.
Sec. 13. [58B.03]
LICENSING OF STUDENT LOAN SERVICERS.
Subdivision 1. License
required. No person shall
directly or indirectly act as a student loan servicer without first obtaining a
license from the commissioner.
Subd. 2. Exempt
persons. The following
persons are exempt from the requirements of this chapter:
(1) a financial institution;
(2) a person servicing student loans
made with the person's own funds, if no more than three student loans are made
in any 12-month period;
(3) an agency, instrumentality, or political subdivision of this state that makes, services, or guarantees student loans;
(4) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a specific order issued by a court of competent jurisdiction;
(5) the University of Minnesota; or
(6) a person exempted by order of the
commissioner.
Subd. 3. Application
for licensure. (a) Any person
seeking to act within the state as a student loan servicer must apply for a
license in a form and manner specified by the commissioner. At a minimum, the application must include:
(1) a financial statement prepared by a
certified public accountant or a public accountant;
(2) the history of criminal
convictions, excluding traffic violations, for persons in control of the
applicant;
(3) any information requested by the
commissioner related to the history of criminal convictions disclosed under
clause (2);
(4) a nonrefundable license fee
established by the commissioner; and
(5) a nonrefundable investigation fee
established by the commissioner.
(b) The commissioner may conduct a state
and national criminal history records check of the applicant and of each person
in control or employee of the applicant.
Subd. 4. Issuance
of a license. (a) Upon
receipt of a complete application for an initial license and the payment of
fees for a license and investigation, the commissioner must investigate the
financial condition and responsibility, character, financial and business
experience, and general fitness of the applicant. The commissioner may issue a license if the
commissioner finds:
(1) the applicant's financial condition
is sound;
(2) the applicant's business will be
conducted honestly, fairly, equitably, carefully, and efficiently within the
purposes and intent of this chapter;
(3) each person in control of the
applicant is in all respects properly qualified and of good character;
(4)
no person, on behalf of the applicant, has knowingly made any incorrect
statement of a material fact in the application or in any report or statement
made pursuant to this section;
(5) no person, on behalf of the
applicant, has knowingly omitted any information required by the commissioner
from an application, report, or statement made pursuant to this section;
(6) the applicant has paid the fees
required under this section; and
(7) the application has met other
similar requirements as determined by the commissioner.
(b) A license issued under this chapter
is not transferable or assignable.
Subd. 5. Notification
of a change in status. An
applicant or student loan servicer must notify the commissioner in writing of
any change in the information provided in the initial application for a license
or the most recent renewal application for a license. The notification must be received no later
than ten business days after the date of an event that results in the
information becoming inaccurate.
Subd. 6. Term
of license. Licenses issued
under this chapter expire on December 31 of each year and are renewable on
January 1.
Subd. 7. Exemption
from application. (a) A
person is exempt from the application procedures under subdivision 3 if the
commissioner determines that the person is servicing student loans in this
state pursuant to a contract awarded by the United States Secretary of
Education under United States Code, title 20, section 1087f. Documentation of eligibility for this
exemption shall be in a form and manner determined by the commissioner.
(b) A person determined to be eligible
for the exemption under paragraph (a) shall, upon payment of the fees under
subdivision 3, be issued a license and deemed to meet all of the requirements
of subdivision 4.
Subd. 8. Notice. (a) A person issued a license under
subdivision 7 must provide the commissioner with written notice no less than
seven days after the date the person's contract under United States Code, title
20, section 1087f, expires, is revoked, or is terminated.
(b) A person issued a license under
subdivision 7 has 30 days from the date the notification under paragraph (a) is provided to complete the requirements of
subdivision 3. If a person does not meet
the requirements of subdivision 3 within this time period, the
commissioner shall immediately suspend the person's license under this chapter.
Sec. 14. [58B.04]
LICENSING MULTIPLE PLACES OF BUSINESS.
A person licensed to act as a student
loan servicer in this state is prohibited from servicing student loans under
any other name or at any other place of business than that named in the license. Any time a student loan servicer changes the
location of the servicer's place of business, the servicer must provide prior
written notice to the commissioner. A
student loan servicer may not maintain more than one place of business under
the same license. The commissioner may
issue more than one license to the same student loan servicer, provided that
the servicer complies with the application procedures in section 58B.03 for
each license.
Sec. 15. [58B.05]
LICENSE RENEWAL.
Subdivision 1. Term. Licenses are renewable on January 1 of
each year.
Subd. 2. Timely
renewal. (a) A person whose
application is properly and timely filed who has not received notice of denial
of renewal is considered approved for renewal.
The person may continue to act as a student loan servicer whether or not
the renewed license has been received on or before January 1 of the renewal
year. An
application
for renewal of a license is considered timely filed if the application is
received by the commissioner, or mailed with proper postage and postmarked, by
the December 15 before the renewal year.
An application for renewal is considered properly filed if the
application is made upon forms duly executed, accompanied by fees prescribed by
this chapter, and containing any information that the commissioner requires.
(b) A person who fails to make a timely
application for renewal of a license and who has not received the renewal
license as of January 1 of the renewal year is unlicensed until the renewal
license has been issued by the commissioner and is received by the person.
Subd. 3. Contents
of renewal application. An
application for renewal of an existing license must contain the information
specified in section 58B.03, subdivision 3, except that only the requested
information having changed from the most recent prior application need be
submitted.
Subd. 4. Cancellation. A student loan servicer ceasing an
activity or activities regulated by this chapter and desiring to no longer be
licensed shall inform the commissioner in writing and, at the same time,
surrender the license and all other symbols or indicia of licensure. The licensee shall include a plan for the
withdrawal from student loan servicing, including a timetable for the
disposition of the student loans being serviced.
Subd. 5. Renewal
fees. The following fees must
be paid to the commissioner for a renewal license:
(1) a nonrefundable renewal license fee
established by the commissioner; and
(2) a nonrefundable renewal
investigation fee established by the commissioner.
Sec. 16. [58B.06]
DUTIES OF STUDENT LOAN SERVICERS.
Subdivision 1. Response
requirements. Upon receiving
a written communication from a borrower, a student loan servicer must:
(1) acknowledge receipt of the
communication in less than ten days from the date the communication is
received; and
(2) provide information relating to the
communication and, if applicable, the action the student loan servicer will
take to either (i) correct the borrower's issue or (ii) explain why the issue
cannot be corrected. The information
must be provided less than 30 days after the date the written communication was
received by the student loan servicer.
Subd. 2. Overpayments. (a) A student loan servicer must ask a
borrower in what manner the borrower would like any overpayment to be applied
to a student loan. A borrower's
instruction regarding the application of overpayments is effective for the term
of the loan or until the borrower provides a different instruction.
(b) For purposes of this subdivision,
"overpayment" means a payment on a student loan that exceeds the
monthly amount due.
Subd. 3. Partial
payments. (a) A student loan
servicer must apply a partial payment in a manner intended to minimize late
fees and the negative impact on the borrower's credit history. If a borrower has multiple student loans with
the same student loan servicer, upon receipt of a partial payment the servicer
must apply the payments to satisfy as many individual loan payments as
possible.
(b) For purposes of this subdivision,
"partial payment" means a payment on a student loan that is less than
the monthly amount due.
Subd. 4. Transfer
of student loan. (a) If a
borrower's student loan servicer changes pursuant to the sale, assignment, or
transfer of the servicing, the original student loan servicer must:
(1) require the new student loan
servicer to honor all benefits that were made available, or which may have
become available, to a borrower from the original student loan servicer; and
(2) transfer to the new student loan
servicer all information regarding the borrower, the account of the borrower,
and the borrower's student loan, including but not limited to the repayment
status of the student loan and the benefits described in clause (1).
(b) The student loan servicer must
complete the transfer under paragraph (a), clause (2), less than 45 days from
the date of the sale, assignment, or transfer of the servicing.
(c) A sale, assignment, or transfer of
the servicing must be completed no less than seven days from the date the next
payment is due on the student loan.
(d) A new student loan servicer must
adopt policies and procedures to verify that the original student loan servicer
has met the requirements of paragraph (a).
Subd. 5. Income-driven repayment. A student loan servicer must evaluate a borrower for eligibility for an income-driven repayment program before placing a borrower in forbearance or default.
Subd. 6. Records. A student loan servicer must maintain
adequate records of each student loan for not less than two years following the
final payment on the student loan or the sale, assignment, or transfer of the
servicing.
EFFECTIVE
DATE. This section is
effective July 1, 2021, and applies to student loan contracts executed on or
after that date.
Sec. 17. [58B.07]
PROHIBITED CONDUCT.
Subdivision 1. Misleading
borrowers. A student loan
servicer must not directly or indirectly attempt to mislead a borrower.
Subd. 2. Misrepresentation. A student loan servicer must not
engage in any unfair or deceptive practice or misrepresent or omit any material
information in connection with the servicing of a student loan, including but
not limited to misrepresenting the amount, nature, or terms of any fee or
payment due or claimed to be due on a student loan, the terms and conditions of
the loan agreement, or the borrower's obligations under the loan.
Subd. 3. Misapplication
of payments. A student loan
servicer must not knowingly or negligently misapply student loan payments.
Subd. 4. Inaccurate
information. A student loan
servicer must not knowingly or negligently provide inaccurate information to
any consumer reporting agency.
Subd. 5. Reporting
of payment history. A student
loan servicer must not fail to report both the favorable and unfavorable
payment history of the borrower to a consumer reporting agency at least
annually, if the student loan servicer regularly reports payment history
information.
Subd. 6. Refusal
to communicate with a borrower's representative. A student loan servicer must not
refuse to communicate with a representative of the borrower who provides a written
authorization signed by the borrower. The
student loan servicer may adopt procedures reasonably related to verifying that
the representative is in fact authorized to act on behalf of the borrower.
Subd. 7. False
statements and omissions. A
student loan servicer must not knowingly or negligently make any false
statement or omission of material fact in connection with any application,
information, or reports filed with the commissioner or any other federal,
state, or local government agency.
Subd. 8. Noncompliance
with applicable laws. A
student loan servicer must not violate any other federal, state, or local laws,
including those related to fraudulent, coercive, or dishonest practices.
Subd. 9. Incorrect
information regarding student loan forgiveness. A student loan servicer must not
misrepresent the availability of student loan forgiveness for which the
servicer has reason to know the borrower is eligible. This includes but is not limited to student
loan forgiveness programs specific to military borrowers, borrowers working in
public service, or borrowers with disabilities.
Subd. 10. Compliance
with servicer duties. A
student loan servicer must comply with the duties and obligations under section
58B.06.
Sec. 18. [58B.08]
EXAMINATIONS.
The commissioner has the same powers
with respect to examinations of student loan servicers under this chapter that
the commissioner has under section 46.04.
Sec. 19. [58B.09]
DENIAL; SUSPENSION; REVOCATION OF LICENSES.
Subdivision 1. Powers
of commissioner. (a) The
commissioner may by order take any or all of the following actions:
(1) bar a person from engaging in
student loan servicing;
(2) deny, suspend, or revoke a student
loan servicer license;
(3) censure a student loan servicer;
(4) impose a civil penalty, as provided
in section 45.027, subdivision 6;
(5) order restitution to the borrower,
if applicable; or
(6) revoke an exemption.
(b) In order to take the action in
paragraph (a), the commissioner must find:
(1) the order is in the public
interest; and
(2) the student loan servicer,
applicant, person in control, employee, or agent has:
(i) violated any provision of this
chapter or a rule or order adopted or issued under this chapter;
(ii) violated a standard of conduct or
engaged in a fraudulent, coercive, deceptive, or dishonest act or practice,
including but not limited to negligently making a false statement or knowingly
omitting a material fact, whether or not the act or practice involves student
loan servicing;
(iii) engaged in an act or practice
that demonstrates untrustworthiness, financial irresponsibility, or
incompetence, whether or not the act or practice involves student loan
servicing;
(iv)
pled guilty or nolo contendere to or been convicted of a felony, gross misdemeanor,
or misdemeanor;
(v) paid a civil penalty or been the
subject of a disciplinary action by the commissioner, order of suspension or
revocation, cease and desist order, injunction order, or order barring
involvement in an industry or profession issued by the commissioner or any
other federal, state, or local government agency;
(vi) been found by a court of competent
jurisdiction to have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit;
(vii) refused to cooperate with an
investigation or examination by the commissioner;
(viii) failed to pay any fee or
assessment imposed by the commissioner; or
(ix) failed to comply with state and
federal tax obligations.
Subd. 2. Orders
of the commissioner. To begin
a proceeding under this section, the commissioner shall issue an order
requiring the subject of the proceeding to show cause why action should not be
taken against the person according to this section. The order must be calculated to give
reasonable notice of the time and place for the hearing and must state the
reasons for entry of the order. The
commissioner may by order summarily suspend a license or exemption or summarily
bar a person from engaging in student loan servicing pending a final
determination of an order to show cause.
If a license or exemption is summarily suspended or if the person is
summarily barred from any involvement in the servicing of student loans pending
final determination of an order to show cause, a hearing on the merits must be
held within 30 days of the issuance of the order of summary suspension or bar. All hearings must be conducted under chapter
14. After the hearing, the commissioner
shall enter an order disposing of the matter as the facts require. If the subject of the order fails to appear
at a hearing after having been duly notified, the person is considered in
default and the proceeding may be determined against the subject of the order
upon consideration of the order to show cause, the allegations of which may be
considered to be true.
Subd. 3. Actions
against lapsed license. If a
license or certificate of exemption lapses; is surrendered, withdrawn, or
terminated; or otherwise becomes ineffective, the commissioner may (1)
institute a proceeding under this subdivision within two years after the
license or certificate of exemption was last effective and enter a revocation
or suspension order as of the last date on which the license or certificate of
exemption was in effect, and (2) impose a civil penalty as provided for in this
section or section 45.027, subdivision 6.
Sec. 20. [58B.10]
DATA PRACTICES.
Subdivision 1. Classification
of data. Data collected,
created, received, maintained, or disseminated by the Department of Commerce
under this chapter are governed by section 46.07.
Subd. 2. Data
sharing. To the extent data
collected, created, received, maintained, or disseminated under this chapter
are not public data as defined by section 13.02, subdivision 8a, the data may,
when necessary to accomplish the purpose of this chapter, be shared between:
(1) the United States Department of
Education;
(2) the Office of Higher Education;
(3) the Department of Commerce;
(4) the Office of the Attorney General;
and
(5) any other local, state, and federal
law enforcement agencies.
Sec. 21. Minnesota Statutes 2020, section 65B.15, subdivision 1, is amended to read:
Subdivision 1. Grounds and notice. No cancellation or reduction in the limits of liability of coverage during the policy period of any policy shall be effective unless notice thereof is given and unless based on one or more reasons stated in the policy which shall be limited to the following:
1. nonpayment of premium; or
2. the policy was obtained through a material misrepresentation; or
3. any insured made a false or fraudulent claim or knowingly aided or abetted another in the presentation of such a claim; or
4. the named insured failed to disclose fully motor vehicle accidents and moving traffic violations of the named insured for the preceding 36 months if called for in the written application; or
5. the named insured failed to disclose in the written application any requested information necessary for the acceptance or proper rating of the risk; or
6. the named insured knowingly failed to give any required written notice of loss or notice of lawsuit commenced against the named insured, or, when requested, refused to cooperate in the investigation of a claim or defense of a lawsuit; or
7. the named insured or any other operator who either resides in the same household, or customarily operates an automobile insured under such policy, unless the other operator is identified as a named insured in another policy as an insured:
(a) has, within the 36 months prior to the notice of cancellation, had that person's driver's license under suspension or revocation because the person committed a moving traffic violation or because the person refused to be tested under section 169A.20, subdivision 1; or
(b) is or becomes subject to epilepsy or heart attacks, and such individual does not produce a written opinion from a physician testifying to that person's medical ability to operate a motor vehicle safely, such opinion to be based upon a reasonable medical probability; or
(c) has an accident record, conviction record (criminal or traffic), physical condition or mental condition, any one or all of which are such that the person's operation of an automobile might endanger the public safety; or
(d) has been convicted, or forfeited bail, during the 24 months immediately preceding the notice of cancellation for criminal negligence in the use or operation of an automobile, or assault arising out of the operation of a motor vehicle, or operating a motor vehicle while in an intoxicated condition or while under the influence of drugs; or leaving the scene of an accident without stopping to report; or making false statements in an application for a driver's license, or theft or unlawful taking of a motor vehicle; or
(e) has been convicted of, or forfeited bail for, one or more violations within the 18 months immediately preceding the notice of cancellation, of any law, ordinance, or rule which justify a revocation of a driver's license; or
8. the insured automobile is:
(a) so mechanically defective that its operation might endanger public safety; or
(b) used in carrying passengers for hire or compensation, provided however that the use of an automobile for a car pool or a private passenger vehicle used by a volunteer driver, as defined under section 65B.472, subdivision 1, paragraph (h), shall not be considered use of an automobile for hire or compensation; or
(c) used in the business of transportation of flammables or explosives; or
(d) an authorized emergency vehicle; or
(e) subject to an inspection law and has not been inspected or, if inspected, has failed to qualify within the period specified under such inspection law; or
(f) substantially changed in type or condition during the policy period, increasing the risk substantially, such as conversion to a commercial type vehicle, a dragster, sports car or so as to give clear evidence of a use other than the original use.
Sec. 22. Minnesota Statutes 2020, section 65B.43, subdivision 12, is amended to read:
Subd. 12. Commercial vehicle. "Commercial vehicle" means:
(a) any motor vehicle used as a common carrier,
(b) any motor vehicle, other than a passenger vehicle defined in section 168.002, subdivision 24, which has a curb weight in excess of 5,500 pounds apart from cargo capacity, or
(c) any motor vehicle while used in the for-hire transportation of property.
Commercial vehicle does not include a
"commuter van," which for purposes of this chapter shall mean means
(1) a motor vehicle having a capacity of seven to 16 persons which is used
principally to provide prearranged transportation of persons to or from their
place of employment or to or from a transit stop authorized by a local transit
authority which vehicle is to be operated by a person who does not drive the
vehicle as a principal occupation but is driving it only to or from the
principal place of employment, to or from a transit stop authorized by a local
transit authority or, for personal use as permitted by the owner of the
vehicle, or (2) a private passenger vehicle driven by a volunteer driver.
Sec. 23. Minnesota Statutes 2020, section 65B.472, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) Unless a different meaning is expressly made applicable, the terms defined in paragraphs (b) through (g) have the meanings given them for the purposes of this chapter.
(b) A "digital network" means any online-enabled application, software, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
(c) A "personal vehicle" means a vehicle that is used by a transportation network company driver in connection with providing a prearranged ride and is:
(1) owned, leased, or otherwise authorized for use by the transportation network company driver; and
(2) not a taxicab, limousine, or
for-hire vehicle, or a private passenger vehicle driven by a volunteer
driver.
(d) A "prearranged ride" means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a taxicab, limousine, or other for-hire vehicle.
(e) A "transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is operating in Minnesota that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides.
(f) A "transportation network company driver" or "driver" means an individual who:
(1) receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and
(2) uses a personal vehicle to provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.
(g) A "transportation network company rider" or "rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
(h) A "volunteer driver" means
an individual who transports persons or goods on behalf of a nonprofit entity
or governmental unit in a private passenger vehicle and receives no
compensation for services provided other than the reimbursement of actual
expenses.
Sec. 24. Minnesota Statutes 2020, section 174.29, subdivision 1, is amended to read:
Subdivision 1. Definition. For the purpose of sections 174.29 and 174.30 "special transportation service" means motor vehicle transportation provided on a regular basis by a public or private entity or person that is designed exclusively or primarily to serve individuals who are elderly or disabled and who are unable to use regular means of transportation but do not require ambulance service, as defined in section 144E.001, subdivision 3. Special transportation service includes but is not limited to service provided by specially equipped buses, vans, taxis, and volunteers driving private automobiles, as defined in section 65B.472, subdivision 1, paragraph (h). Special transportation service also means those nonemergency medical transportation services under section 256B.0625, subdivision 17, that are subject to the operating standards for special transportation service under sections 174.29 to 174.30 and Minnesota Rules, chapter 8840.
Sec. 25. Minnesota Statutes 2020, section 174.30, subdivision 1, is amended to read:
Subdivision 1. Applicability. (a) The operating standards for special transportation service adopted under this section do not apply to special transportation provided by:
(1) a public transit provider receiving financial assistance under sections 174.24 or 473.371 to 473.449;
(2) a volunteer driver, as defined in section 65B.472, subdivision 1, paragraph (h), using a private automobile;
(3) a school bus as defined in section 169.011, subdivision 71; or
(4) an emergency ambulance regulated under chapter 144.
(b) The operating standards adopted under this section only apply to providers of special transportation service who receive grants or other financial assistance from either the state or the federal government, or both, to provide or assist in providing that service; except that the operating standards adopted under this section do not apply to any nursing home licensed under section 144A.02, to any board and care facility licensed under section 144.50, or to any day training and habilitation services, day care, or group home facility licensed under sections 245A.01 to 245A.19 unless the facility or program provides transportation to nonresidents on a regular basis and the facility receives reimbursement, other than per diem payments, for that service under rules promulgated by the commissioner of human services.
(c) Notwithstanding paragraph (b), the operating standards adopted under this section do not apply to any vendor of services licensed under chapter 245D that provides transportation services to consumers or residents of other vendors licensed under chapter 245D and transports 15 or fewer persons, including consumers or residents and the driver.
Sec. 26. Minnesota Statutes 2020, section 174.30, subdivision 10, is amended to read:
Subd. 10. Background studies. (a) Providers of special transportation service regulated under this section must initiate background studies in accordance with chapter 245C on the following individuals:
(1) each person with a direct or indirect ownership interest of five percent or higher in the transportation service provider;
(2) each controlling individual as defined under section 245A.02;
(3) managerial officials as defined in section 245A.02;
(4) each driver employed by the transportation service provider;
(5) each individual employed by the transportation service provider to assist a passenger during transport; and
(6) all employees of the transportation service agency who provide administrative support, including those who:
(i) may have face-to-face contact with or access to passengers, their personal property, or their private data;
(ii) perform any scheduling or dispatching tasks; or
(iii) perform any billing activities.
(b) The transportation service provider must initiate the background studies required under paragraph (a) using the online NETStudy system operated by the commissioner of human services.
(c) The transportation service provider shall not permit any individual to provide any service or function listed in paragraph (a) until the transportation service provider has received notification from the commissioner of human services indicating that the individual:
(1) is not disqualified under chapter 245C; or
(2) is disqualified, but has received a set-aside of that disqualification according to sections 245C.22 and 245C.23 related to that transportation service provider.
(d) When a local or contracted agency is authorizing a ride under section 256B.0625, subdivision 17, by a volunteer driver, as defined in section 65B.472, subdivision 1, paragraph (h), and the agency authorizing the ride has reason to believe the volunteer driver has a history that would disqualify the individual or that may pose a risk to the health or safety of passengers, the agency may initiate a background study to be completed according to chapter 245C using the commissioner of human services' online NETStudy system, or through contacting the Department of Human Services background study division for assistance. The agency that initiates the background study under this paragraph shall be responsible for providing the volunteer driver with the privacy notice required under section 245C.05, subdivision 2c, and payment for the background study required under section 245C.10, subdivision 11, before the background study is completed.
Sec. 27. Minnesota Statutes 2020, section 221.031, subdivision 3b, is amended to read:
Subd. 3b. Passenger transportation; exemptions. (a) A person who transports passengers for hire in intrastate commerce, who is not made subject to the rules adopted in section 221.0314 by any other provision of this section, must comply with the rules for hours of service of drivers while transporting employees of an employer who is directly or indirectly paying the cost of the transportation.
(b) This subdivision does not apply to:
(1) a local transit commission;
(2) a transit authority created by law; or
(3) persons providing transportation:
(i) in a school bus as defined in section 169.011, subdivision 71;
(ii) in a Head Start bus as defined in section 169.011, subdivision 34;
(iii) in a commuter van;
(iv) in an authorized emergency vehicle as defined in section 169.011, subdivision 3;
(v) in special transportation service certified by the commissioner under section 174.30;
(vi) that is special transportation service as defined in section 174.29, subdivision 1, when provided by a volunteer driver, as defined in section 65B.472, subdivision 1, paragraph (h), operating a private passenger vehicle as defined in section 169.011, subdivision 52;
(vii) in a limousine the service of which is licensed by the commissioner under section 221.84; or
(viii) in a taxicab, if the fare for the transportation is determined by a meter inside the taxicab that measures the distance traveled and displays the fare accumulated.
Sec. 28. Minnesota Statutes 2020, section 256B.0625, subdivision 17, is amended to read:
Subd. 17. Transportation costs. (a) "Nonemergency medical transportation service" means motor vehicle transportation provided by a public or private person that serves Minnesota health care program beneficiaries who do not require emergency ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
(b) Medical assistance covers medical transportation costs incurred solely for obtaining emergency medical care or transportation costs incurred by eligible persons in obtaining emergency or nonemergency medical care when paid directly to an ambulance company, nonemergency medical transportation company, or other recognized providers of transportation services. Medical transportation must be provided by:
(1) nonemergency medical transportation providers who meet the requirements of this subdivision;
(2) ambulances, as defined in section 144E.001, subdivision 2;
(3) taxicabs that meet the requirements of this subdivision;
(4) public transit, as defined in section 174.22, subdivision 7; or
(5)
not-for-hire vehicles, including volunteer drivers, as defined in section
65B.472, subdivision 1, paragraph (h).
(c) Medical assistance covers nonemergency medical transportation provided by nonemergency medical transportation providers enrolled in the Minnesota health care programs. All nonemergency medical transportation providers must comply with the operating standards for special transportation service as defined in sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the commissioner and reported on the claim as the individual who provided the service. All nonemergency medical transportation providers shall bill for nonemergency medical transportation services in accordance with Minnesota health care programs criteria. Publicly operated transit systems, volunteers, and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
(d) An organization may be terminated, denied, or suspended from enrollment if:
(1) the provider has not initiated background studies on the individuals specified in section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
(2) the provider has initiated background studies on the individuals specified in section 174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
(i) the commissioner has sent the provider a notice that the individual has been disqualified under section 245C.14; and
(ii) the individual has not received a disqualification set-aside specific to the special transportation services provider under sections 245C.22 and 245C.23.
(e) The administrative agency of nonemergency medical transportation must:
(1) adhere to the policies defined by the commissioner in consultation with the Nonemergency Medical Transportation Advisory Committee;
(2) pay nonemergency medical transportation providers for services provided to Minnesota health care programs beneficiaries to obtain covered medical services;
(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled trips, and number of trips by mode; and
(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single administrative structure assessment tool that meets the technical requirements established by the commissioner, reconciles trip information with claims being submitted by providers, and ensures prompt payment for nonemergency medical transportation services.
(f) Until the commissioner implements the single administrative structure and delivery system under subdivision 18e, clients shall obtain their level-of-service certificate from the commissioner or an entity approved by the commissioner that does not dispatch rides for clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7).
(g) The commissioner may use an order by the recipient's attending physician, advanced practice registered nurse, or a medical or mental health professional to certify that the recipient requires nonemergency medical transportation services. Nonemergency medical transportation providers shall perform driver-assisted services for
eligible individuals, when appropriate. Driver-assisted service includes passenger pickup at and return to the individual's residence or place of business, assistance with admittance of the individual to the medical facility, and assistance in passenger securement or in securing of wheelchairs, child seats, or stretchers in the vehicle.
Nonemergency medical transportation providers must take clients to the health care provider using the most direct route, and must not exceed 30 miles for a trip to a primary care provider or 60 miles for a trip to a specialty care provider, unless the client receives authorization from the local agency.
Nonemergency medical transportation providers may not bill for separate base rates for the continuation of a trip beyond the original destination. Nonemergency medical transportation providers must maintain trip logs, which include pickup and drop-off times, signed by the medical provider or client, whichever is deemed most appropriate, attesting to mileage traveled to obtain covered medical services. Clients requesting client mileage reimbursement must sign the trip log attesting mileage traveled to obtain covered medical services.
(h) The administrative agency shall use the level of service process established by the commissioner in consultation with the Nonemergency Medical Transportation Advisory Committee to determine the client's most appropriate mode of transportation. If public transit or a certified transportation provider is not available to provide the appropriate service mode for the client, the client may receive a onetime service upgrade.
(i) The covered modes of transportation are:
(1) client reimbursement, which includes client mileage reimbursement provided to clients who have their own transportation, or to family or an acquaintance who provides transportation to the client;
(2) volunteer transport, which includes transportation by volunteers using their own vehicle;
(3) unassisted transport, which includes transportation provided to a client by a taxicab or public transit. If a taxicab or public transit is not available, the client can receive transportation from another nonemergency medical transportation provider;
(4) assisted transport, which includes transport provided to clients who require assistance by a nonemergency medical transportation provider;
(5) lift-equipped/ramp transport, which includes transport provided to a client who is dependent on a device and requires a nonemergency medical transportation provider with a vehicle containing a lift or ramp;
(6) protected transport, which includes transport provided to a client who has received a prescreening that has deemed other forms of transportation inappropriate and who requires a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety locks, a video recorder, and a transparent thermoplastic partition between the passenger and the vehicle driver; and (ii) who is certified as a protected transport provider; and
(7) stretcher transport, which includes transport for a client in a prone or supine position and requires a nonemergency medical transportation provider with a vehicle that can transport a client in a prone or supine position.
(j) The local agency shall be the single administrative agency and shall administer and reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the commissioner has developed, made available, and funded the web-based single administrative structure, assessment tool, and level of need assessment under subdivision 18e. The local agency's financial obligation is limited to funds provided by the state or federal government.
(k) The commissioner shall:
(1) in consultation with the Nonemergency Medical Transportation Advisory Committee, verify that the mode and use of nonemergency medical transportation is appropriate;
(2) verify that the client is going to an approved medical appointment; and
(3) investigate all complaints and appeals.
(l) The administrative agency shall pay for the services provided in this subdivision and seek reimbursement from the commissioner, if appropriate. As vendors of medical care, local agencies are subject to the provisions in section 256B.041, the sanctions and monetary recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.
(m) Payments for nonemergency medical transportation must be paid based on the client's assessed mode under paragraph (h), not the type of vehicle used to provide the service. The medical assistance reimbursement rates for nonemergency medical transportation services that are payable by or on behalf of the commissioner for nonemergency medical transportation services are:
(1) $0.22 per mile for client reimbursement;
(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer transport;
(3) equivalent to the standard fare for unassisted transport when provided by public transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency medical transportation provider;
(4) $13 for the base rate and $1.30 per mile for assisted transport;
(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;
(6) $75 for the base rate and $2.40 per mile for protected transport; and
(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for an additional attendant if deemed medically necessary.
(n) The base rate for nonemergency medical transportation services in areas defined under RUCA to be super rural is equal to 111.3 percent of the respective base rate in paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation services in areas defined under RUCA to be rural or super rural areas is:
(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage rate in paragraph (m), clauses (1) to (7); and
(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage rate in paragraph (m), clauses (1) to (7).
(o) For purposes of reimbursement rates for nonemergency medical transportation services under paragraphs (m) and (n), the zip code of the recipient's place of residence shall determine whether the urban, rural, or super rural reimbursement rate applies.
(p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means a census-tract based classification system under which a geographical area is determined to be urban, rural, or super rural.
(q) The commissioner, when determining reimbursement rates for nonemergency medical transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2).
Sec. 29. Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision to read:
Subd. 2b. Purchase
of catalytic converters. (a)
Any person who purchases or receives a catalytic converter must comply with
this section.
(b) Every scrap metal dealer, including
an agent, employee, or representative of the dealer, must create a permanent
record, written in English and using an electronic record program, at the time
of each catalytic converter purchase or acquisition. The record must include:
(1) the vehicle identification number
of the vehicle from which the catalytic converter was removed; and
(2) the name of the person who removed
the catalytic converter.
(c) A scrap metal dealer must make the
information under paragraph (b) available for examination by a law enforcement
agency or a person who has reported theft of a catalytic converter.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision to read:
Subd. 2c. Catalytic
converter theft prevention pilot project.
(a) The catalytic converter theft prevention pilot project is
created to deter the theft of catalytic converters by marking catalytic
converters with vehicle identification numbers or other unique identifiers.
(b) The commissioner must establish a
procedure to mark the catalytic converters of vehicles most likely to be
targeted for theft with unique identification numbers using labels, engraving,
theft deterrence paint, or other methods that permanently mark the catalytic
converter without damaging the catalytic converter's function.
(c) The commissioner must work with law
enforcement agencies, insurance companies, and scrap metal dealers to (1)
identify vehicles that are most frequently targeted for catalytic converter
theft, and (2) establish the most effective methods for marking catalytic
converters.
(d) Materials purchased under this
program may be distributed to dealers, as defined in section 168.002,
subdivision 6, automobile repair shops and service centers, law enforcement
agencies, and community organizations to arrange the catalytic converters of
vehicles most likely to be targeted for theft to be marked at no cost to the
vehicle owners.
(e) The commissioner may prioritize
distribution of materials to areas experiencing the highest rates of catalytic
converter theft.
(f) The commissioner must make
educational information resulting form the pilot program available to law
enforcement agencies and scrap metal dealers, and is encouraged to publicize
the program to the general public.
(g) The commissioner must include a report
on the pilot project in the report required under section 65B.84, subdivision 2. The report must describe the progress,
results, and any findings of the pilot project including the total number of
catalytic converters marked under the program, and, to the extent known,
whether any catalytic converters marked under the pilot project were stolen and
the outcome of any criminal investigation into the thefts.
Sec. 31. [325E.80]
ABNORMAL MARKET DISRUPTIONS; UNCONSCIONABLY EXCESSIVE PRICES
Subdivision 1. Definitions. (a) For purposes of this section, the
terms in this subdivision have the meanings given.
(b) "Abnormal market
disruption" means a change in the market resulting from a natural or
man-made disaster, a national or local emergency, a public health emergency, or
an event resulting in a declaration of a state of emergency by the governor;
and occurs when specifically declared by the governor. The governor's declaration of an abnormal
market disruption must note the geographic area to which this section applies. An abnormal market disruption terminates no
later than 30 days after the end of the state of emergency for which the
abnormal market disruption was activated.
(c) "Essential consumer good or
service" means a good or service vital and necessary for the health,
safety, and welfare of the public, including without limitation: food; water; fuel; gasoline; shelter;
transportation; health care services; pharmaceuticals; and medical, personal
hygiene, sanitation, and cleaning supplies.
(d) "Seller" means a
manufacturer, supplier, wholesaler, distributor, or retail seller of goods or
services.
(e) "Unconscionably
excessive" means there is a gross disparity between the seller's price of
a good or service offered for sale or sold in the usual course of business
during the 30 days immediately prior to the governor's declaration of an
abnormal market disruption and the seller's price of the same or similar good
or service after the governor's declaration of an abnormal market disruption,
and the gross disparity is not substantially related to an increase in the cost
of obtaining or selling the good or of providing the service. A gross disparity between the price of a good
or service does not occur when the amount charged after the abnormal market
disruption increased the price 30 percent or less.
Subd. 2. Prohibition. If the governor declares an abnormal
market disruption a person is prohibited from selling or offering to sell an
essential consumer good or service for an amount that represents an
unconscionably excessive price.
Subd. 3. Civil
penalty. A person who is
found to have violated this section is subject to a civil penalty of not more
than $1,000 per sale or transaction, with a maximum penalty of $10,000 per day.
Subd. 4. Enforcement
authority. The attorney
general may investigate an alleged violation of this section. The authority of the attorney general under
this section includes but is not limited to the authority provided under
section 8.31.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 32. Minnesota Statutes 2020, section 325F.171, is amended by adding a subdivision to read:
Subd. 5. Enforcement. This section may be enforced as
provided under sections 325F.10 to 325F.12, 325F.14 to 325F.16, and 45.027,
subdivisions 1 to 6. The commissioner
may coordinate with the commissioner of the Pollution Control Agency and the
commissioner of health to enforce this section.
Sec. 33. Minnesota Statutes 2020, section 325F.172, is amended by adding a subdivision to read:
Subd. 4. Enforcement. Sections 325F.173 to 325F.175 may be
enforced as provided under sections 325F.10 to 325F.12, 325F.14 to 325F.16, and
45.027, subdivisions 1 to 6. The
commissioner may coordinate with the commissioner of the Pollution Control
Agency and the commissioner of health to enforce this section.
Sec. 34. [325F.179]
ENFORCEMENT.
Sections 325F.177 and 325F.178 may be
enforced as provided under sections 325F.10 to 325F.12, 325F.14 to 325F.16, and
45.027, subdivisions 1 to 6. The
commissioner may coordinate with the commissioner of the Pollution Control
Agency and the commissioner of health to enforce this section.
Sec. 35. Minnesota Statutes 2020, section 514.972, subdivision 4, is amended to read:
Subd. 4. Denial
of access. Upon default, the owner
shall mail notice of default as provided under section 514.974. The owner may deny the occupant access to the
personal property contained in the self-service storage facility after default,
service of the notice of default, expiration of the date stated for denial of
access, and application of any security deposit to unpaid rent. The notice of default must state the date
that the occupant will be denied access to the occupant's personal property in
the self-service storage facility and that access will be denied until the
owner's claim has been satisfied. The
notice of default must state that any dispute regarding denial of access can be
raised by the occupant beginning legal action in court. Notice of default must further state the
rights of the occupant contained in subdivision 5.
Sec. 36. Minnesota Statutes 2020, section 514.972, subdivision 5, is amended to read:
Subd. 5. Access
to certain items. The occupant
may remove from the self-service storage facility personal papers, health aids,
personal clothing of the occupant and the occupant's dependents, and personal
property that is necessary for the livelihood of the occupant, that has a
market value of less than $50 per item, if demand is made to any of the persons
listed in section 514.976, subdivision 1.
The occupant shall present a list of the items, and may remove them
during the facility's ordinary business hours prior to the sale authorized by
section 514.973. If the owner
unjustifiably denies the occupant access for the purpose of removing the items
specified in this subdivision, the occupant is entitled to an order allowing
access to the storage unit for removal of the specified items. The self‑service storage facility is
liable to the occupant for the costs, disbursements and attorney fees expended
by the occupant to obtain this order. (a) Any occupant may remove from
the self-storage facility personal papers and health aids upon demand made to
any of the persons listed in section 514.976, subdivision 1.
(b) An occupant who provides
documentation from a government or nonprofit agency or legal aid office that
the occupant is a recipient of relief based on need, is eligible for legal aid
services, or is a survivor of domestic violence or sexual assault may remove,
in addition to the items provided in paragraph (a), personal clothing of the
occupant and the occupant's dependents and tools of the trade that are
necessary for the livelihood of the occupant that has a market value not to
exceed $125 per item.
(c) The occupant shall present a list
of the items and may remove the items during the facility's ordinary business
hours prior to the sale authorized by section 514.973. If the owner unjustifiably denies the
occupant access for the purpose of removing the items specified in this
subdivision, the occupant is entitled to request relief from the court for an
order allowing access to the storage space for removal of the specified items. The self-service storage facility is liable
to the occupant for the costs, disbursements, and attorney fees expended by the
occupant to obtain this order.
(d) For the purposes of this
subdivision, "relief based on need" includes but is not limited to
receipt of a benefit from the Minnesota family investment program and
diversionary work program, medical assistance, general assistance, emergency
general assistance, Minnesota supplemental aid, Minnesota supplemental aid
housing assistance, MinnesotaCare, Supplemental Security Income, energy
assistance, emergency assistance, Supplemental Nutrition Assistance Program
benefits, earned income tax credit, or Minnesota working family tax credit. Relief based on need can also be proven by
providing documentation from a legal aid organization that the individual is
receiving legal aid assistance, or by providing documentation from a government
agency, nonprofit, or housing assistance program that the individual is
receiving assistance due to domestic violence or sexual assault.
Sec. 37. Minnesota Statutes 2020, section 514.973, subdivision 3, is amended to read:
Subd. 3. Contents of notice. The notice must include:
(1) a statement of the amount owed for rent and other charges and demand for payment within a specified time not less than 14 days after delivery of the notice;
(2) pursuant to section 514.972, subdivision 4, a notice of denial of access to the storage space, if this denial is permitted under the terms of the rental agreement;
(3) the date that the occupant will be
denied access to the occupant's personal property in the self-service storage
facility;
(4) a statement that access will be
denied until the owner's claim has been satisfied;
(5) a statement that any dispute
regarding denial of access can be raised by an occupant beginning legal action
in court;
(3) (6) the name, street
address, and telephone number of the owner, or of the owner's designated agent,
whom the occupant may contact to respond to the notice;
(4) (7) a conspicuous
statement that unless the claim is paid within the time stated in the notice,
the personal property will be advertised for sale. The notice must specify the time and place of
the sale; and
(5) (8) a conspicuous
statement of the items that the occupant may remove without charge pursuant to
section 514.972, subdivision 5, if the occupant is denied general access to the
storage space.
Sec. 38. Minnesota Statutes 2020, section 514.973, subdivision 4, is amended to read:
Subd. 4. Sale of property. (a) A sale of personal property may take place no sooner than 45 days after default or, if the personal property is a motor vehicle or watercraft, no sooner than 60 days after default.
(b) After the expiration of the time given in the notice, the sale must be published once a week for two weeks consecutively in a newspaper of general circulation where the sale is to be held. The sale may take place no sooner than 15 days after the first publication. If the lien is satisfied before the second publication occurs, the second publication is waived. If there is no qualified newspaper under chapter 331A where the sale is to be held, the advertisement may be posted on an independent, publicly accessible website that advertises self-storage lien sales or public notices. The advertisement must include a general description of the goods, the name of the person on whose account the goods are being held, and the time and place of the sale.
(c) A sale of the personal property must conform to the terms of the notification.
(d) A sale of the personal property must be public and must be either:
(1) held via an online auction; or
(2) held at the storage facility, or at the nearest suitable place at which the personal property is held or stored.
Owners shall require all bidders, including online bidders, to register and agree to the rules of the sale.
(e) The sale must be conducted in a commercially reasonable manner. A sale is commercially reasonable if the property is sold in conformity with the practices among dealers in the property sold or sellers of similar distressed property sales.
Sec. 39. Minnesota Statutes 2020, section 514.974, is amended to read:
514.974
ADDITIONAL NOTIFICATION REQUIREMENT.
Notification of the proposed sale of
personal property must include a notice of denial of access to the personal
property until the owner's claim has been satisfied. Any notice the owner is required to mail to
the occupant under sections 514.970 to 514.979 shall be sent to:
(1) the email address, if consented to by the occupant, as provided in section 514.973, subdivision 2;
(2) the mailing address and any alternate mailing address provided by the occupant in the rental agreement; or
(3) the last known mailing address of the occupant, if the last known mailing address differs from the mailing address listed by the occupant in the rental agreement and the owner has reason to believe that the last known mailing address is more current.
Sec. 40. Minnesota Statutes 2020, section 514.977, is amended to read:
514.977
DEFAULT ADDITIONAL REMEDIES.
Subdivision 1. Default;
breach of rental agreement. If
an occupant defaults in the payment of rent for the storage space or
otherwise breaches the rental agreement, the owner may commence an eviction
action under chapter 504B to terminate the rental agreement, recover
possession of the storage space, remove the occupant, and dispose of the stored
personal property. The action
shall be conducted in accordance with the Minnesota Rules of Civil Procedure,
except as provided in this section.
Subd. 2. Service
of summons. The summons must be
served at least seven days before the date of the court appearance as provided
in subdivision 3.
Subd. 3. Appearance. Except as provided in subdivision 4,
in an action filed under this section the appearance shall be not less than
seven or more than 14 days from the day of issuing the summons.
Subd. 4. Expedited
hearing. If the owner files a
motion and affidavit stating specific facts and instances in support of an
allegation that the occupant is causing a nuisance or engaging in illegal or
other behavior that seriously endangers the safety of others, others' property,
or the storage facility's property, the appearance shall be not less than three
days nor more than seven days from the date the summons is issued. The summons in an expedited hearing shall be
served upon the occupant within 24 hours of issuance unless the court orders
otherwise for good cause shown.
Subd. 5. Answer;
trial; continuance. At the
court appearance specified in the summons, the defendant may answer the
complaint, and the court shall hear and decide the action, unless it grants a
continuance of the trial, which may be for no longer than six days, unless all
parties consent to longer continuance.
Subd. 6. Counterclaims. The occupant is prohibited from
bringing counterclaims in the action that are unrelated to the possession of
the storage space. Nothing in this
section prevents the occupant from bringing the claim in a separate action.
Subd. 7. Judgment;
writ. Judgment in matters
adjudicated under this section shall be in accordance with section 504B.345,
paragraph (a). Execution of a writ
issued under this section shall be in accordance with section 504B.365.
Sec. 41. THIRD-PARTY
FOOD DELIVERY FEES; LIMITATION.
Subdivision 1. Definitions. (a) For purposes of this section, the
terms defined in this subdivision have the meanings given.
(b) "Delivery fee" means a fee
charged by a third-party food delivery service to a food and beverage
establishment for a service that delivers food or beverages from the establishment
to customers. Delivery fee does not
include (1) any other fee that may be charged by a third-party food delivery
service to a food and beverage establishment, including but not limited to fees
for marketing, listing, or advertising the food and beverage establishment on
the third-party food delivery service platform, or (2) fees related to
processing an online order.
(c) "Food and beverage
establishment" or "establishment" means a retail business that
sells prepared food or beverages to the public.
(d) "Online order" means an
order, including a telephone order, placed by a customer through or with the
assistance of a platform provided by a third-party food delivery service.
(e) "Purchase price" means the
total price of the items contained in an online order that are listed on the
menu of the food and beverage establishment where the order is placed. Purchase price does not include taxes,
gratuities, or other fees that may make up the total cost of a customer's
online order.
(f) "Third-party food delivery
service" means a platform offered through an online-enabled application,
software, website, or other Internet service that offers or arranges for the
sale of food and beverages prepared by, delivered by, or picked up from a food
and beverage establishment.
Subd. 2. Limitation
on food delivery fees. (a) A
third-party food delivery service is prohibited from:
(1) charging a food and beverage
establishment a delivery fee that totals more than ten percent of an online
order's purchase price;
(2) charging a food and beverage
establishment any fee, other than the delivery fee described in clause (1), to
use the third-party delivery service that totals more than five percent of an
online order's purchase price;
(3) charging a customer a purchase price
that is higher than the price set by the food and beverage establishment or, if
no price is set by the food and beverage establishment, the price listed on the
establishment's menu; or
(4) reducing the compensation rates paid
to third-party food delivery service drivers as a result of the limitations on
fees instituted by this section.
(b) A food and beverage establishment
may choose, but a third-party food delivery service is prohibited from
requiring, an exemption for marketing or advertising the food and beverage
establishment on the third-party food delivery service platform from the
limitations in paragraph (a).
Subd. 3. Enforcement
by attorney general. (a) The
attorney general must enforce this section under Minnesota Statutes, section 8.31.
(b) In addition to the remedies
otherwise provided by law, a person injured by a violation of subdivision 2 may
bring a civil action and recover damages, together with costs and
disbursements, including costs of investigation and reasonable attorney fees,
and receive other equitable relief as determined by the court.
EFFECTIVE
DATE. This section is
effective the day following final enactment and expires 60 days after the
peacetime emergency declared by the governor in an executive order that relates
to the infectious disease known as COVID-19 is terminated or rescinded.
ARTICLE 5
COLLECTION AGENCIES AND DEBT BUYERS
Section 1. Minnesota Statutes 2020, section 332.31, subdivision 3, is amended to read:
Subd. 3. Collection
agency. "Collection agency"
or "licensee" means and includes any (1) a
person engaged in the business of collection for others any account, bill,
or other indebtedness, except as hereinafter provided; or (2) a debt
buyer. It includes persons who
furnish collection systems carrying a name which simulates the name of a
collection agency and who supply forms or form letters to be used by the
creditor, even though such forms direct the debtor to make payments directly to
the creditor rather than to such fictitious agency.
Sec. 2. Minnesota Statutes 2020, section 332.31, subdivision 6, is amended to read:
Subd. 6. Collector. "Collector" is a person acting
under the authority of a collection agency under subdivision 3 or a
debt buyer under subdivision 8, and on its behalf in the business of
collection for others an account, bill, or other indebtedness except as
otherwise provided in this chapter.
Sec. 3. Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to read:
Subd. 8. Debt
buyer. "Debt buyer"
means a business engaged in the purchase of any charged-off account, bill, or
other indebtedness for collection purposes, whether the business collects the
account, bill, or other indebtedness, hires a third party for collection, or
hires an attorney for litigation related to the collection.
Sec. 4. Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to read:
Subd. 9. Affiliated
company. "Affiliated
company" means a company that: (1)
directly or indirectly controls, is controlled by, or is under common control
with another company or companies; (2) has the same executive management team
or owner that exerts control over the business operations of the company; (3)
maintains a uniform network of corporate and compliance policies and
procedures; and (4) does not engage in active collection of debts.
Sec. 5. Minnesota Statutes 2020, section 332.311, is amended to read:
332.311
TRANSFER OF ADMINISTRATIVE FUNCTIONS.
The powers, duties, and responsibilities of the consumer services section under sections 332.31 to 332.44 relating to collection agencies and debt buyers are hereby transferred to and imposed upon the commissioner of commerce.
Sec. 6. Minnesota Statutes 2020, section 332.32, is amended to read:
332.32
EXCLUSIONS.
(a) The term "collection agency"
shall does not include persons whose collection activities are
confined to and are directly related to the operation of a business other than
that of a collection agency such as, but not limited to banks when
collecting accounts owed to the banks and when the bank will sustain any loss
arising from uncollectible accounts, abstract companies doing an escrow
business, real estate brokers, public officers, persons acting under order of a
court, lawyers, trust companies, insurance companies, credit unions, savings
associations, loan or finance companies unless they are engaged in asserting,
enforcing or prosecuting unsecured claims which have been purchased from any
person, firm, or association when there is recourse to the seller for all or
part of the claim if the claim is not collected.
(b) The term "collection agency" shall not include a trade association performing services authorized by section 604.15, subdivision 4a, but the trade association in performing the services may not engage in any conduct that would be prohibited for a collection agency under section 332.37.
Sec. 7. Minnesota Statutes 2020, section 332.33, subdivision 1, is amended to read:
Subdivision 1. Requirement. Except as otherwise provided in this
chapter, no person shall conduct within this state a collection agency or
engage within this state in the business of collecting claims for others business
in Minnesota as a collection agency or debt buyer, as defined in sections
332.31 to 332.44, without having first applied for and obtained a collection
agency license. A person acting under
the authority of a collection agency, debt buyer, or as a collector,
must first register with the commissioner under this section. A registered collector may use one additional
assumed name only if the assumed name is registered with and approved by the
commissioner. A business that
operates as a debt buyer must submit a completed license application no later
than January 1, 2022. A debt buyer who
has filed an application with the commissioner for a collection agency license
prior to January 1, 2022, and whose application remains pending with the
commissioner thereafter, may continue to operate without a license until the
commissioner approves or denies the application.
Sec. 8. Minnesota Statutes 2020, section 332.33, subdivision 2, is amended to read:
Subd. 2. Penalty. A person who carries on business as a collection agency or debt buyer without first having obtained a license or acts as a collector without first having registered with the commissioner pursuant to sections 332.31 to 332.44, or who carries on this business after the revocation, suspension, or expiration of a license or registration is guilty of a misdemeanor.
Sec. 9. Minnesota Statutes 2020, section 332.33, subdivision 5, is amended to read:
Subd. 5. Collection
agency License rejection. On
finding that an applicant for a collection agency license is not
qualified under sections 332.31 to 332.44, the commissioner shall reject the
application and shall give the applicant written notice of the rejection and
the reasons for the rejection.
Sec. 10. Minnesota Statutes 2020, section 332.33, subdivision 5a, is amended to read:
Subd. 5a. Individual
collector registration. A licensed
collection agency licensee, on behalf of an individual collector,
must register with the state all individuals in the collection agency's licensee's
employ who are performing the duties of a collector as defined in sections
332.31 to 332.44. The collection
agency licensee must apply for an individual collection registration
in a form prescribed by the commissioner.
The collection agency licensee shall verify on the form
that the applicant has confirmed that the applicant meets the requirements to
perform the duties of a collector as defined in sections 332.31 to 332.44. Upon submission of the application to the
department, the individual may begin to perform the duties of a collector and
may continue to do so unless the licensed collection agency licensee
is informed by the commissioner that the individual is ineligible.
Sec. 11. Minnesota Statutes 2020, section 332.33, subdivision 7, is amended to read:
Subd. 7. Changes;
notice to commissioner. (a) A licensed
collection agency licensee must give the commissioner written notice
of a change in company name, address, or ownership not later than ten days
after the change occurs. A registered
individual collector must give written notice of a change of address, name, or
assumed name no later than ten days after the change occurs.
(b) Upon the death of any collection
agency licensee, the license of the decedent may be transferred to the
executor or administrator of the estate for the unexpired term of the license. The executor or administrator may be
authorized to continue or discontinue the collection business of the decedent
under the direction of the court having jurisdiction of the probate.
Sec. 12. Minnesota Statutes 2020, section 332.33, subdivision 8, is amended to read:
Subd. 8. Screening
process requirement. (a) Each licensed
collection agency licensee must establish procedures to follow when
screening an individual collector applicant prior to submitting an applicant to
the commissioner for initial registration and at renewal.
(b) The screening process for initial
registration must be done at the time of hiring. The process must include a national criminal
history record search, an attorney licensing search, and a county criminal
history search for all counties where the applicant has resided within the five
years immediately preceding the initial registration, to determine whether the
applicant is eligible to be registered under section 332.35. Each licensed collection agency licensee
shall use a vendor that is a member of the National Association of Professional
Background Screeners, or an equivalent vendor, to conduct this background
screening process.
(c) Screening for renewal of individual collector registration must include a national criminal history record search and a county criminal history search for all counties where the individual has resided during the immediate preceding year. Screening for renewal of individual collector registrations must take place no more than 60 days before the license expiration or renewal date. A renewal screening is not required if an individual collector has been subjected to an initial background screening within 12 months of the first registration renewal date. A renewal screening is required for all subsequent annual registration renewals.
(d) The commissioner may review the
procedures to ensure the integrity of the screening process. Failure by a licensed collection agency
licensee to establish these procedures is subject to action under
section 332.40.
Sec. 13. Minnesota Statutes 2020, section 332.33, is amended by adding a subdivision to read:
Subd. 9. Affiliated
companies. The commissioner
must permit affiliated companies to operate under a single license and be
subject to a single examination, provided that all of the affiliated company
names are listed on the license.
Sec. 14. Minnesota Statutes 2020, section 332.34, is amended to read:
332.34
BOND.
The commissioner of commerce shall require
each collection agency licensee to file and maintain in force a
corporate surety bond, in a form to be prescribed by, and acceptable to, the
commissioner, and in a sum of at least $50,000 plus an additional $5,000 for
each $100,000 received by the collection agency from debtors located in
Minnesota during the previous calendar year, less commissions earned by the
collection agency on those collections for the previous calendar year. The total amount of the bond shall not exceed
$100,000. A collection agency licensee
may deposit cash in and with a depository acceptable to the commissioner in an
amount and in the manner prescribed and approved by the commissioner in lieu of
a bond.
Sec. 15. Minnesota Statutes 2020, section 332.345, is amended to read:
332.345
SEGREGATED ACCOUNTS.
A payment collected by a collector or
collection agency on behalf of a customer shall be held by the collector or
collection agency in a separate trust account clearly designated for customer
funds. The account must be in a bank or
other depository institution authorized or chartered under the laws of any
state or of the United States. This
section does not apply to a debt buyer, except to the extent the debt buyer
engages in third-party debt collection for others.
Sec. 16. Minnesota Statutes 2020, section 332.355, is amended to read:
332.355
AGENCY RESPONSIBILITY FOR COLLECTORS.
The commissioner may take action against a collection
agency licensee for any violations of debt collection laws by its
debt collectors. The commissioner may
also take action against the debt collectors themselves for these same
violations.
Sec. 17. Minnesota Statutes 2020, section 332.37, is amended to read:
332.37
PROHIBITED PRACTICES.
(a) No collection agency, debt buyer, or collector shall:
(1) in collection letters or publications, or in any communication, oral or written threaten wage garnishment or legal suit by a particular lawyer, unless it has actually retained the lawyer;
(2) use or employ sheriffs or any other officer authorized to serve legal papers in connection with the collection of a claim, except when performing their legally authorized duties;
(3) use or threaten to use methods of collection which violate Minnesota law;
(4) furnish legal advice or otherwise engage in the practice of law or represent that it is competent to do so;
(5) communicate with debtors in a misleading or deceptive manner by using the stationery of a lawyer, forms or instruments which only lawyers are authorized to prepare, or instruments which simulate the form and appearance of judicial process;
(6) exercise authority on behalf of a creditor
client to employ the services of lawyers unless the creditor client
has specifically authorized the agency in writing to do so and the agency's
course of conduct is at all times consistent with a true relationship of
attorney and client between the lawyer and the creditor client;
(7) publish or cause to be published any list of debtors except for credit reporting purposes, use shame cards or shame automobiles, advertise or threaten to advertise for sale any claim as a means of forcing payment thereof, or use similar devices or methods of intimidation;
(8) refuse to return any claim or claims
and all valuable papers deposited with a claim or claims upon written request
of the creditor client, claimant or forwarder after tender of the
amounts due and owing to the a collection agency within 30 days
after the request; refuse or intentionally fail to account to its clients for
all money collected within 30 days from the last day of the month in which the
same is collected; or, refuse or fail to furnish at intervals of not less than
90 days upon written request of the claimant or forwarder, a written report
upon claims received from the claimant or forwarder;
(9) operate under a name or in a manner which implies that the collection agency or debt buyer is a branch of or associated with any department of federal, state, county or local government or an agency thereof;
(10) commingle money collected for a customer with the collection agency's operating funds or use any part of a customer's money in the conduct of the collection agency's business;
(11) transact business or hold itself out
as a debt prorater settlement company, debt management company,
debt adjuster, or any person who settles, adjusts, prorates, pools, liquidates
or pays the indebtedness of a debtor, unless there is no charge to the debtor,
or the pooling or liquidation is done pursuant to court order or under the
supervision of a creditor's committee;
(12) violate any of the provisions of the Fair Debt Collection Practices Act of 1977, Public Law 95-109, while attempting to collect on any account, bill or other indebtedness;
(13) communicate with a debtor by use of a
recorded message utilizing an automatic dialing announcing device unless the
recorded message is immediately preceded by a live operator who discloses prior
to the message the name of the collection agency and the fact the message
intends to solicit payment and the operator obtains the consent of the debtor
to hearing the message after the debtor expressly informs the agency or
collector to cease communication utilizing an automatic dialing announcing
device;
(14) in collection letters or publications, or in any communication, oral or written, imply or suggest that health care services will be withheld in an emergency situation;
(15) when a debtor has a listed telephone number, enlist the aid of a neighbor or third party to request that the debtor contact the licensee or collector, except a person who resides with the debtor or a third party with whom the debtor has authorized the licensee or collector to place the request. This clause does not apply to a call back message left at the debtor's place of employment which is limited to the licensee's or collector's telephone number and name;
(16) when attempting to collect a debt, fail to provide the debtor with the full name of the collection agency or debt buyer as it appears on its license or as listed on any "doing business as" or "d/b/a" registered with the Department of Commerce;
(17) collect any money from a debtor that
is not reported to a creditor or client;
(18) fail to return any amount of overpayment from a debtor to the debtor or to the state of Minnesota pursuant to the requirements of chapter 345;
(18) (19) accept currency or
coin as payment for a debt without issuing an original receipt to the debtor
and maintaining a duplicate receipt in the debtor's payment records;
(19) (20) attempt to collect
any amount of money, including any interest, fee, charge, or expense
incidental to the charge-off obligation, from a debtor or unless
the amount is expressly authorized by the agreement creating the debt or is
otherwise permitted by law;
(21) charge a fee to a creditor
client that is not authorized by agreement with the client;
(20) (22) falsify any
collection agency documents with the intent to deceive a debtor, creditor, or
governmental agency;
(21) (23) when initially
contacting a Minnesota debtor by mail, fail to include a disclosure on the contact
notice, in a type size or font which is equal to or larger than the largest
other type of type size or font used in the text of the notice. The disclosure must state: "This collection agency is licensed by
the Minnesota Department of Commerce" or "This debt buyer is
licensed by the Minnesota Department of Commerce" as applicable; or
(22) (24) commence legal
action to collect a debt outside the limitations period set forth in section
541.053.
(b) Paragraph (a), clauses (6), (8),
(10), (17), and (21), do not apply to debt buyers except to the extent the debt
buyer engages in third-party debt collection for others.
Sec. 18. Minnesota Statutes 2020, section 332.385, is amended to read:
332.385
NOTIFICATION TO COMMISSIONER.
The collection agency or debt buyer
licensee shall notify the commissioner of any employee termination within ten
days of the termination if it the termination is based in
whole or in part based on a violation of this chapter.
Sec. 19. Minnesota Statutes 2020, section 332.40, subdivision 3, is amended to read:
Subd. 3. Commissioner's powers. (a) For the purpose of any investigation or proceeding under sections 332.31 to 332.44, the commissioner or any person designated by the commissioner may administer oaths and affirmations, subpoena collection agencies, debt buyers, or collectors and compel their attendance, take evidence and require the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the commissioner deems relevant or material to the inquiry. The subpoena shall contain a written statement setting forth the circumstances which have reasonably caused the commissioner to believe that a violation of sections 332.31 to 332.44 may have occurred.
(b) In the event that the collection agency, debt buyer, or collector refuses to obey the subpoena, or should the commissioner, upon completion of the examination of the collection agency, debt buyer, or collector, reasonably conclude that a violation has occurred, the commissioner may examine additional witnesses, including third parties, as may be necessary to complete the investigation.
(c) Any subpoena issued pursuant to this section shall be served by certified mail or by personal service. Service shall be made at least 15 days prior to the date of appearance.
Sec. 20. Minnesota Statutes 2020, section 332.42, subdivision 1, is amended to read:
Subdivision 1. Verified
financial statement. The
commissioner of commerce may at any time require a collection agency
licensee to submit a verified financial statement for examination by the commissioner
to determine whether the collection agency licensee is financially
responsible to carry on a collection agency business within the intents
and purposes of sections 332.31 to 332.44.
Sec. 21. Minnesota Statutes 2020, section 332.42, subdivision 2, is amended to read:
Subd. 2. Record
keeping. The commissioner shall
require the collection agency or debt buyer licensee to keep such books
and records in the licensee's place of business in this state as will enable
the commissioner to determine whether there has been compliance with the
provisions of sections 332.31 to 332.44, unless the agency is a foreign
corporation duly authorized, admitted, and licensed to do business in this
state and complies with all the requirements of chapter 303 and with all other
requirements of sections 332.31 to 332.44.
Every collection agency licensee shall preserve the records of final
entry used in such business for a period of five years after final remittance
is made on any amount placed with the licensee for collection or after any
account has been returned to the claimant on which one or more payments have
been made. Every debt buyer licensee
must preserve the records of final entry used in the business for a period of
five years after final collection of any purchased account.
Sec. 22. GARNISHMENT
PROHIBITIONS ON COVID-19 GOVERNMENT ASSISTANCE.
(a) Federal, state, local, and tribal
governmental payments issued to relieve the adverse economic impact caused by
the COVID-19 pandemic are exempt from all claims for garnishments and levies of
consumer debtors of debt primarily for personal, family, or household purposes
governed by Minnesota Statutes, chapters 550, 551, and 571.
(b) Paragraph (a) does not apply to
domestic support orders and obligations, including child support and spousal
maintenance obligations, including but not limited to orders and obligations
under Minnesota Statutes, chapters 518 and 518A.
(c)
This section expires on December 31, 2022.
EFFECTIVE
DATE; APPLICATION. This
section is effective the day following final enactment and applies to
government assistance provided on or after March 13, 2020.
ARTICLE 6
COMMERCE MISCELLANEOUS
Section 1. Minnesota Statutes 2020, section 45.305, subdivision 1, is amended to read:
Subdivision 1. Appraiser
and Insurance Internet prelicense courses.
The design and delivery of an appraiser prelicense education
course or an insurance prelicense education course must be approved by the
International Distance Education Certification Center (IDECC) before the course
is submitted for the commissioner's approval.
Sec. 2. Minnesota Statutes 2020, section 45.305, is amended by adding a subdivision to read:
Subd. 1a. Appraiser
Internet prelicense courses. The
requirements for the design and delivery of an appraiser prelicense education
course are the requirements established by the Appraiser Qualifications Board
of the Appraisal Foundation and published in the most recent version of the
Real Property Appraiser Qualification Criteria.
Sec. 3. Minnesota Statutes 2020, section 45.306, is amended by adding a subdivision to read:
Subd. 1a. Appraiser
Internet continuing education courses.
The requirements for the design and delivery of an appraiser
continuing education course are the requirements established by the Appraiser
Qualifications Board of the Appraisal Foundation and published in the most
recent version of the Real Property Appraiser Qualification Criteria.
Sec. 4. Minnesota Statutes 2020, section 45.33, subdivision 1, is amended to read:
Subdivision 1. Prohibitions. In connection with an approved course, coordinators and instructors must not:
(1) recommend or promote the services or practices of a particular business;
(2) encourage or recruit individuals to engage the services of, or become associated with, a particular business;
(3) use materials, clothing, or other evidences of affiliation with a particular entity, except as provided under subdivision 3;
(4) require students to participate in other programs or services offered by the instructor, coordinator, or education provider;
(5) attempt, either directly or indirectly, to discover questions or answers on an examination for a license;
(6) disseminate to any other person specific questions, problems, or information known or believed to be included in licensing examinations;
(7) misrepresent any information submitted to the commissioner;
(8) fail to cover, or ensure coverage of, all points, issues, and concepts contained in the course outline approved by the commissioner during the approved instruction; and
(9) issue inaccurate course completion certificates.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2020, section 45.33, is amended by adding a subdivision to read:
Subd. 3. Exceptions. In connection with an approved course,
coordinators and instructors may:
(1) display a company or course
provider's logo or branding;
(2) establish a trade-show or conference
booth outside the classroom where the educational content is being delivered
that is separate from a registration location used to track or facilitate
student attendance;
(3) display the logo or branding
associated with a particular entity to thank the entity as an organizational
partner of the course provider during a scheduled and approved break in the
delivery of course content. The display
must be separate from a registration location used to track or facilitate
student attendance; and
(4) display a third-party logo,
promotion, advertisement, or affiliation with a particular entity as part of a
course program or advertising for an approved course. For purposes of this subdivision, course
program means digital or paper literature describing the schedule of the
events, presenters, duration, or background information of the approved course
or courses. A course program may be made
available in the classroom or at a registration location used to track or
facilitate student attendance.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2020, section 60A.71, subdivision 7, is amended to read:
Subd. 7. Duration; fees. (a) Each applicant for a reinsurance intermediary license shall pay to the commissioner a fee of $200 for an initial two-year license and a fee of $150 for each renewal. Applications shall be submitted on forms prescribed by the commissioner.
(b)
Initial licenses issued under this chapter are valid for a period not to exceed
24 months and expire on October 31 of the renewal year assigned by the
commissioner. Each renewal reinsurance
intermediary license is valid for a period of 24 months. Licensees who submit renewal applications
postmarked or delivered on or before October 15 of the renewal year may
continue to transact business whether or not the renewal license has been
received by November 1. Licensees who
submit applications postmarked or delivered after October 15 of the renewal
year must not transact business after the expiration date of the license until
the renewal license has been received.
(c) All fees are nonreturnable, except that an overpayment of any fee may be refunded upon proper application.
Sec. 7. Minnesota Statutes 2020, section 79.55, subdivision 10, is amended to read:
Subd. 10. Duties
of commissioner; report. The
commissioner shall issue a report by March 1 of each year, comparing the
average rates charged by workers' compensation insurers in the state to the
pure premium base rates filed by the association, as reviewed by the Rate
Oversight Commission. The Rate Oversight
Commission shall review the commissioner's report and if the experience
indicates that rates have not reasonably reflected changes in pure premiums,
the rate oversight commission shall recommend to the legislature appropriate
legislative changes to this chapter.
(a) By March 1 of each year, the
commissioner must issue a report that evaluates the competitiveness of the
workers' compensation market in Minnesota in order to evaluate whether the
competitive rating law is working.
(b) The report under this subdivision
must: (1) compare the average rates
charged by workers' compensation insurers in Minnesota with the pure premium
base rates filed by the association; and (2) provide market information,
including but not limited to the number of carriers, market shares, the
loss-cost multipliers used by companies, and the residual market and
self-insurance.
(c)
The commissioner must provide the report to the Rate Oversight Commission for
review. If after reviewing the report
the Rate Oversight Commission concludes that concerns exist regarding the
competitiveness of the workers' compensation market in Minnesota, the Rate
Oversight Commission must recommend to the legislature appropriate
modifications to this chapter.
Sec. 8. Minnesota Statutes 2020, section 80G.06, subdivision 1, is amended to read:
Subdivision 1. Surety bond requirement. (a) Every dealer shall maintain a current, valid surety bond issued by a surety company admitted to do business in Minnesota in an amount based on the transactions conducted with Minnesota consumers (purchases from and sales to consumers at retail) during the 12-month period prior to registration, or renewal, whichever is applicable.
(b) The amount of the surety bond shall be as specified in the table below:
Transaction Amount in Preceding 12-month Period |
Surety Bond Required |
|
$25,000 |
$200,000.01 to $500,000 |
$50,000 |
$500,000.01 to $1,000,000 |
$100,000 |
$1,000,000.01 to $2,000,000 |
$150,000 |
Over $2,000,000 |
$200,000 |
Sec. 9. [80G.11]
NOTIFICATION TO COMMISSIONER.
A dealer must notify the commissioner
of any dealer representative termination within ten days of the termination if
the termination is based in whole or in part on a violation of this chapter.
Sec. 10. Minnesota Statutes 2020, section 82.57, subdivision 1, is amended to read:
Subdivision 1. Amounts. The following fees shall be paid to the commissioner:
(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for each renewal thereof;
(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each renewal thereof;
(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 for each renewal thereof;
(d) a fee of $150 for each initial corporate, limited liability company, or partnership license, and a fee of $100 for each renewal thereof;
(e) a fee for payment to the education, research and recovery fund in accordance with section 82.86;
(f) a fee of $20 for each transfer;
(g) a fee of $50 for license
reinstatement;
(h) (g) a fee of $20 for
reactivating a corporate, limited liability company, or partnership license;
and
(i) (h) in addition to the
fees required under this subdivision, individual licensees under clauses (a)
and (b) shall pay, for each initial license and renewal, a technology surcharge
of up to $40 under section 45.24, unless the commissioner has adjusted the
surcharge as permitted under that section.
Sec. 11. Minnesota Statutes 2020, section 82.57, subdivision 5, is amended to read:
Subd. 5. Initial
license expiration; fee reduction. If
an initial license issued under subdivision 1, paragraph (a), (b), (c), or (d)
expires less than 12 months after issuance, the license fee shall be reduced by
an amount equal to one-half the fee for a renewal of the license. An initial license issued under this
chapter expires in the year that results in the term of the license being at
least 12 months, but no more than 24 months.
Sec. 12. Minnesota Statutes 2020, section 82.62, subdivision 3, is amended to read:
Subd. 3. Timely
renewals. A person whose
application for a license renewal has not been timely submitted and who has
not received notice of approval of renewal may not continue to transact
business either as a real estate broker, salesperson, or closing agent after
June 30 of the renewal year until approval of renewal is received. Application for renewal of a license is
timely submitted if: all requirements for renewal, including
continuing education requirements, have been completed and reported pursuant to
section 45.43, subdivision 1.
(1) all requirements for renewal,
including continuing education requirements, have been completed by June 15 of
the renewal year; and
(2) the application is submitted before
the renewal deadline in the manner prescribed by the commissioner, duly
executed and sworn to, accompanied by fees prescribed by this chapter, and
containing any information the commissioner requires.
Sec. 13. Minnesota Statutes 2020, section 82.81, subdivision 12, is amended to read:
Subd. 12. Fraudulent, deceptive, and dishonest practices. (a) Prohibitions. For the purposes of section 82.82, subdivision 1, clause (b), the following acts and practices constitute fraudulent, deceptive, or dishonest practices:
(1) act on behalf of more than one party to a transaction without the knowledge and consent of all parties;
(2) act in the dual capacity of licensee and undisclosed principal in any transaction;
(3) receive funds while acting as principal which funds would constitute trust funds if received by a licensee acting as an agent, unless the funds are placed in a trust account. Funds need not be placed in a trust account if a written agreement signed by all parties to the transaction specifies a different disposition of the funds, in accordance with section 82.82, subdivision 1;
(4) violate any state or federal law concerning discrimination intended to protect the rights of purchasers or renters of real estate;
(5) make a material misstatement in an application for a license or in any information furnished to the commissioner;
(6) procure or attempt to procure a real
estate license for himself or herself the procuring individual or
any person by fraud, misrepresentation, or deceit;
(7) represent membership in any real estate-related organization in which the licensee is not a member;
(8) advertise in any manner that is misleading or inaccurate with respect to properties, terms, values, policies, or services conducted by the licensee;
(9) make any material misrepresentation or permit or allow another to make any material misrepresentation;
(10) make any false or misleading statements, or permit or allow another to make any false or misleading statements, of a character likely to influence, persuade, or induce the consummation of a transaction contemplated by this chapter;
(11) fail within a reasonable time to account for or remit any money coming into the licensee's possession which belongs to another;
(12) commingle with his or her the
individual's own money or property trust funds or any other money or
property of another held by the licensee;
(13) a demand from a seller for
a commission to or compensation to which the licensee is
not entitled, knowing that he or she the individual is not entitled
to the commission or compensation;
(14) pay or give money or goods of value to an unlicensed person for any assistance or information relating to the procurement by a licensee of a listing of a property or of a prospective buyer of a property (this item does not apply to money or goods paid or given to the parties to the transaction);
(15) fail to maintain a trust account at all times, as provided by law;
(16) engage, with respect to the offer, sale, or rental of real estate, in an anticompetitive activity;
(17) represent on advertisements, cards,
signs, circulars, letterheads, or in any other manner, that he or she the
individual is engaged in the business of financial planning unless he or
she the individual provides a disclosure document to the client. The document must be signed by the client and
a copy must be left with the client. The
disclosure document must contain the following:
(i) the basis of fees, commissions, or
other compensation received by him or her an individual in
connection with rendering of financial planning services or financial
counseling or advice in the following language:
"My compensation may be based on the following:
(a) ... commissions generated from the products I sell you;
(b) ... fees; or
(c) ... a combination of (a) and (b). [Comments]";
(ii) the name and address of any company
or firm that supplies the financial services or products offered or sold by him
or her an individual in the following language:
"I am authorized to offer or sell products and/or services issued by or through the following firm(s):
[List]
The products will be traded, distributed, or placed through the clearing/trading firm(s) of:
[List]";
(iii) the license(s) held by the person under this chapter or chapter 60A or 80A in the following language:
"I am licensed in Minnesota as a(n):
(a) ... insurance agent;
(b) ... securities agent or broker/dealer;
(c) ... real estate broker or salesperson;
(d) ... investment adviser"; and
(iv) the specific identity of any financial products or services, by category, for example mutual funds, stocks, or limited partnerships, the person is authorized to offer or sell in the following language:
"The license(s) entitles me to offer and sell the following products and/or services:
(a) ... securities, specifically the following: [List];
(b) ... real property;
(c) ... insurance; and
(d) ... other: [List]."
(b) Determining violation. A licensee shall be deemed to have violated this section if the licensee has been found to have violated sections 325D.49 to 325D.66, by a final decision or order of a court of competent jurisdiction.
(c) Commissioner's authority. Nothing in this section limits the authority of the commissioner to take actions against a licensee for fraudulent, deceptive, or dishonest practices not specifically described in this section.
Sec. 14. Minnesota Statutes 2020, section 82B.021, is amended by adding a subdivision to read:
Subd. 14a. Evaluation. "Evaluation" means an
estimate of the value of real property, made in accordance with the Interagency
Appraisal and Evaluation Guidelines provided to an entity regulated by a
federal financial institution's regulatory agency, for use in a real
estate-related financial transaction for which an appraisal is not required by
federal law.
Sec. 15. Minnesota Statutes 2020, section 82B.021, is amended by adding a subdivision to read:
Subd. 16a. Interagency
Appraisal and Evaluation Guidelines.
"Interagency Appraisal and Evaluation Guidelines" means
the appraisal and evaluation guidelines provided by a federal financial
institution's regulatory agency, as provided by Federal Register, volume 75,
page 77450 (2010), as amended.
Sec. 16. Minnesota Statutes 2020, section 82B.021, subdivision 18, is amended to read:
Subd. 18. Licensed
real property appraiser. "Licensed
real property appraiser" means an individual licensed under this chapter
to perform appraisals on noncomplex one-family to four-family residential units
or agricultural property having a transactional value of less than $1,000,000
and complex one-family to four-family residential units or agricultural
property having a transactional value of less than $250,000 $400,000.
Sec. 17. Minnesota Statutes 2020, section 82B.03, is amended by adding a subdivision to read:
Subd. 3. Evaluation. A licensed real estate appraiser may
provide an evaluation. When providing an
evaluation, a licensed real estate appraiser is not engaged in real estate
appraisal activity and is not subject to this chapter. An evaluation by a licensed real estate
appraiser under this subdivision must contain a disclosure that the evaluation
is not an appraisal.
Sec. 18. Minnesota Statutes 2020, section 82B.11, subdivision 3, is amended to read:
Subd. 3. Licensed
residential real property appraiser. A
licensed residential real property appraiser may appraise noncomplex
residential property or agricultural property having a transaction value less
than $1,000,000 and complex residential or agricultural property having a
transaction value less than $250,000 $400,000.
Sec. 19. Minnesota Statutes 2020, section 82B.195, is amended by adding a subdivision to read:
Subd. 5. Evaluation. When providing an evaluation, a
licensed real estate appraiser is not required to comply with the Uniform
Standards of Professional Appraisal Practice.
Sec. 20. [82B.25]
VALUATION BIAS.
Subdivision 1. Definition. For the purposes of this section,
"valuation bias" means to explicitly, implicitly, or structurally
select data and apply that 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. Within two years of receiving a
license under this chapter, and as required by the Appraiser Qualifications
Board, 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.
EFFECTIVE
DATE. This section is
effective September 1, 2021. A real
property appraiser who has received their license prior to the effective date
of this section must complete the course required by this section by
August 31, 2023.
Sec. 21. Minnesota Statutes 2020, section 115C.094, is amended to read:
115C.094
ABANDONED UNDERGROUND STORAGE TANKS.
(a) As used in this section, an abandoned underground petroleum storage tank means an underground petroleum storage tank that was:
(1) taken out of service prior to December
22, 1988; or
(2) taken out of service on or after
December 22, 1988, if the current property owner did not know of the existence
of the underground petroleum storage tank and could not have reasonably been
expected to have known of the tank's existence at the time the owner first
acquired right, title, or interest in the tank.; or
(3) taken out of service and is located
on property that is being held by the state in trust for local taxing districts
under section 281.25.
(b) The board may contract for:
(1) a statewide assessment in order to determine the quantity, location, cost, and feasibility of removing abandoned underground petroleum storage tanks;
(2) the removal of an abandoned underground petroleum storage tank; and
(3) the removal and disposal of petroleum-contaminated soil if the removal is required by the commissioner at the time of tank removal.
(c) Before the board may contract for removal of an abandoned petroleum storage tank, the tank owner must provide the board with written access to the property and release the board from any potential liability for the work performed.
(d) If at the time of the forfeiture of
property identified under paragraph (a), clause (3), the property owner or the
owner's heirs, devisees, or representatives, or any person to whom the right to
pay taxes was granted by statute, mortgage, or other agreement, repurchases the
property under section 282.241, the board's contracted costs for the
underground storage tank removal project must be included as a special
assessment included in the repurchase price, as provided under section 282.251,
and must be returned to the board upon the sale of the property.
(d) (e) Money in the fund is
appropriated to the board for the purposes of this section.
Sec. 22. Minnesota Statutes 2020, section 308A.201, subdivision 12, is amended to read:
Subd. 12. Electric cooperative powers. (a) An electric cooperative has the power and authority to:
(1) make loans to its members;
(2) prerefund debt;
(3) obtain funds through negotiated financing or public sale;
(4) borrow money and issue its bonds, debentures, notes, or other evidence of indebtedness;
(5) mortgage, pledge, or otherwise hypothecate its assets as may be necessary;
(6) invest its resources;
(7) deposit money in state and national banks and trust companies authorized to receive deposits; and
(8) exercise all other powers and authorities granted to cooperatives.
(b) A cooperative organized to provide rural electric power may enter agreements and contracts with other electric power cooperatives or with a cooperative constituted of electric power cooperatives to share losses and risk of losses to their transmission and distribution lines, transformers, substations, and related appurtenances from storm, sleet, hail, tornado, cyclone, hurricane, or windstorm. An agreement or contract or a cooperative formed to share losses under this paragraph is not subject to the laws of this state relating to insurance and insurance companies.
(c) An electric cooperative, an
affiliate of the cooperative formed to provide broadband, or another entity
pursuant to an agreement with the cooperative or the cooperative's affiliate
may use the cooperative, affiliate, or entity's existing or subsequently
acquired electric transmission or distribution easements for broadband infrastructure
and to provide broadband service, which may include an agreement to lease fiber
capacity. To exercise rights granted
under this paragraph, the cooperative must provide to the property owner on
which the easement is located two written notices, at least two months apart,
that the cooperative intends to use the easement for broadband purposes. The use of the easement for broadband
services vests and runs with the land beginning
six months
after the first notice is provided under paragraph (d) unless a court action
challenging the use of the easement for
broadband purposes has been filed before that time by the property owner as
provided under paragraph (e). The
cooperative must also file evidence of the notices for recording with the
county recorder.
(d) The cooperative's notices under
paragraph (c) must be sent by first class mail to the last known address of the
owner of the property on which the easement is located or by printed insertion
in the property owner's utility bill. The
notice must include the following:
(1) the name and mailing address of the
cooperative;
(2) a narrative describing the nature and purpose of the intended easement use;
(3) a description of any trenching or
other underground work expected to result from the intended use, including the
anticipated time frame for the work;
(4) a phone number of a cooperative
employee to contact regarding the easement; and
(5) the following statement, in bold red
lettering: "It is important to make
any challenge by the deadline to preserve any legal rights you may have."
(e) A property owner, within six months
after receiving notice under paragraph (d), may commence an action seeking to
recover damages for an electric cooperative's use of an electric transmission
or distribution easement for broadband service purposes. If the claim for damages is under $15,000,
the claim may be brought in conciliation court.
Notwithstanding any other law to the contrary, the procedures and
substantive matters set forth in this subdivision govern an action under this
paragraph and are the exclusive means to bring a claim for compensation with
respect to a notice of intent to use a cooperative transmission or distribution
easement for broadband purposes. To
commence an action under this paragraph, the property owner must serve a
complaint upon the electric cooperative as in a civil action and file the
complaint with the district court for the county in which the easement is
located. The complaint must state
whether the property owner (1) is challenging the electric cooperative's right
to use the easement for broadband services or infrastructure as authorized
under paragraph (c), (2) is seeking damages as provided under paragraph (f), or
(3) both.
(f) If the property owner is seeking
damages, the electric cooperative may, at any time after answering the
complaint, (1) deposit with the court administrator an amount equal to the
cooperative's estimate of damages, up to $5,000, and (2) after making the
deposit, use the electric transmission or service line easements for broadband
purposes, conditioned on an obligation to pay the amount of damages determined
by the court. If the property owner is
challenging the electric cooperative's right to use the easement for broadband
services or infrastructure as authorized under paragraph (c), after the
electric cooperative answers the complaint the district court must promptly
hold a hearing on the property owner's challenge. If the district court denies the property
owner's challenge, the electric cooperative may proceed to make a deposit and
make use of the easement for broadband service purposes, as provided under
clause (2).
(g) In an action involving a property
owner's claim for damages, the landowner has the burden to prove the existence
and amount of any net reduction in the fair market value of the property,
considering the existence, installation, construction, maintenance,
modification, operation, repair, replacement, or removal of broadband
infrastructure in the easement, as well as any benefit to the property from
access to broadband service. Consequential
or special damages must not be awarded. Evidence
of revenue, profits, fees, income, or similar benefits to the electric
cooperative, the cooperative's affiliate, or a third party is inadmissible. Any fees or costs incurred as a result of an
action under this subdivision must be paid by the party that incurred the fees
or costs.
(h) Nothing in this section limits in
any way an electric cooperative's existing easement rights, including but not
limited to rights an electric cooperative has or may acquire to transmit
communications for electric system operations or otherwise.
(i)
Placement of broadband infrastructure for use in providing broadband service
under paragraphs (c) to (h) in any portion of an electric transmission or
distribution easement located in the public right-of-way is subject to local
government permitting and right-of-way management authority under section
237.163, and the placement must be coordinated with the relevant local government
unit to minimize potential future relocations.
The cooperative must notify a local government unit prior to placing
infrastructure for broadband service in an easement that is in or adjacent to
the local government unit's public right-of-way.
(j) For purposes of this subdivision:
(1) "broadband
infrastructure" has the meaning given in section 116J.394; and
(2) "broadband service" means
broadband infrastructure and any services provided over the infrastructure that
offer advanced telecommunications capability and Internet access.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. [332.61]
INFORMATIVE DISCLOSURE.
A lead generator must prominently make
the following disclosure on all print, electronic, and nonprint solicitations,
including advertising on websites, radio, or television: "This company does not actually provide
any of the credit services you are seeking.
We ONLY refer you to companies that want to provide some or all of those
services."
Sec. 24. Minnesota Statutes 2020, section 349.11, is amended to read:
349.11
PURPOSE.
The purpose of sections 349.11 to 349.22
is to regulate lawful gambling, to insure integrity of operations, and
to provide for the use of net profits only for lawful purposes, and to
authorize only those games or game features discussed in this chapter.
EFFECTIVE
DATE. This section is
effective September 6, 2022.
Sec. 25. Minnesota Statutes 2020, section 349.12, subdivision 12a, is amended to read:
Subd. 12a. Electronic bingo device. "Electronic bingo device" means a handheld and portable electronic device that:
(1) is used by a bingo player to:
(i) monitor bingo paper sheets or a facsimile of a bingo paper sheet purchased and played at the time and place of an organization's bingo occasion, or to play an electronic bingo game that is linked with other permitted premises;
(ii) activate numbers announced or displayed, and to compare the numbers to the bingo faces previously stored in the memory of the device;
(iii) identify a winning bingo pattern or game requirement; and
(iv) play against other bingo players;
(2) limits the play of bingo faces to 36 faces per game;
(3) requires coded entry to activate play but does not allow the use of a coin, currency, or tokens to be inserted to activate play;
(4) may only be used for play against other bingo players in a bingo game;
(5) may only display the results of the
electronic bingo game in a manner typically associated with bingo played in a
paper format, may only display the grid of numbers and letters typically
associated with paper bingo, and may not display or simulate any other form of
gambling, entertainment, slot machines, electronic video lotteries, or video
games of chance;
(6) has no spinning reels or other
representations that mimic a slot machine, including but not limited to
nonstraight win line graphics, nonstraight pay line graphics, open all
features, single button press reveals, hold and spin features, delayed reveals,
cascading or tumbling reveals, bonus games, bonus wheels, free play, free
spins, or screens or game features that are triggered after the initial symbols
are revealed that display the results of the game;
(5) (7) has no additional
function as an amusement or gambling device other than as an electronic
pull-tab game defined under section 349.12, subdivision 12c;
(6) (8) has the capability
to ensure adequate levels of security internal controls;
(7) (9) has the capability
to permit the board to electronically monitor the operation of the device and
the internal accounting systems; and
(8) (10) has the capability
to allow use by a player who is visually impaired.
EFFECTIVE
DATE. This section is
effective September 6, 2022.
Sec. 26. Minnesota Statutes 2020, section 349.12, subdivision 12b, is amended to read:
Subd. 12b. Electronic pull-tab device. "Electronic pull-tab device" means a handheld and portable electronic device that:
(1) is used to play one or more electronic pull-tab games;
(2) requires coded entry to activate play but does not allow the use of coin, currency, or tokens to be inserted to activate play;
(3) requires that a player must manually
activate or open each electronic pull-tab ticket and also manually activate
or open each individual line, row, or column of each electronic
pull-tab ticket symbols on each electronic pull-tab ticket with a
separate push of a button, and must display the underlying symbols in a given
line, row, or column immediately after the player manually activates or opens
the applicable line, row, or column of symbols;
(4) maintains information pertaining to accumulated win credits that may be applied to games in play or redeemed upon termination of play;
(5) may only display the results of the
electronic pull-tab game in a manner typically associated with paper pull‑tabs
tickets, may only display symbols typically associated with paper pull-tab
tickets, may not include continuation play, bonus games, or additional screens
or game features that display the results of the game after the initial symbols
are revealed, and may not display or simulate any other form of gambling,
entertainment, slot machines, electronic video lotteries, or video games of
chance;
(5) (6) has no spinning reels or other representations that mimic a video slot machine, including but not limited to nonstraight win line graphics, nonstraight pay line graphics, open all features, single button press reveals, hold and spin features, delayed reveals, cascading or tumbling reveals, bonus games, bonus wheels, free play, free spins, progressive prizes or jackpots, or screens or game features that are triggered after the initial symbols are revealed that display the results of the game;
(6) (7) has no additional
function as a gambling device other than as an electronic-linked bingo game played
on a device defined under section 349.12, subdivision 12a;
(7) (8) may incorporate an
amusement game feature as part of the pull-tab game but may not require
additional consideration for that feature or award any prize, or other benefit
for that feature;
(8) (9) may have auditory or
visual enhancements to promote or provide information about the game being
played, provided the component does not affect the outcome of a game or display
the results of a game;
(9) (10) maintains, on
nonresettable meters, a printable, permanent record of all transactions
involving each device and electronic pull-tab games played on the device;
(10) (11) is not a pull-tab
dispensing device as defined under subdivision 32a; and
(11) (12) has the capability
to allow use by a player who is visually impaired.
EFFECTIVE
DATE. This section is
effective September 6, 2022.
Sec. 27. Minnesota Statutes 2020, section 349.12, subdivision 12c, is amended to read:
Subd. 12c. Electronic pull-tab game. "Electronic pull-tab game" means a pull-tab game containing:
(1) facsimiles of pull-tab tickets that are played on an electronic pull-tab device, provided that any game with multiple lines, rows, or columns of symbols requires a separate push of a button to reveal the symbols underneath the applicable line, row, or column and results are displayed pursuant to subdivision 12b;
(2) a predetermined, finite number of winning and losing tickets, not to exceed 7,500 tickets;
(3) the same price for each ticket in the game;
(4) a price paid by the player of not less than 25 cents per ticket;
(5) tickets that are in conformance with applicable board rules for pull-tabs;
(6) winning tickets that comply with prize limits under section 349.211;
(7) a unique serial number that may not be regenerated;
(8) an electronic flare that displays the game name; form number; predetermined, finite number of tickets in the game; and prize tier; and
(9) no spinning reels or other representations that mimic a video slot machine as provided in subdivision 12b, clause (6).
EFFECTIVE
DATE. This section is
effective September 6, 2022.
Sec. 28. Minnesota Statutes 2020, section 386.375, subdivision 3, is amended to read:
Subd. 3. Consumer education information. (a) A person other than the mortgagor or fee owner who transfers or offers to transfer an abstract of title shall present to the mortgagor or fee owner basic information in plain English about abstracts of title. This information must be sent in a form prepared and approved by the commissioner of commerce and must contain at least the following items:
(1) a definition and description of abstracts of title;
(2) an explanation that holders of abstracts of title must maintain it with reasonable care;
(3) an approximate cost or range of costs
to replace a lost or damaged abstract of title; and
(4) an explanation that abstracts of
title may be required to sell, finance, or refinance real estate; and
(5) (4) an explanation of
options for storage of abstracts.
(b) The commissioner shall prepare the form for use under this subdivision as soon as possible. This subdivision does not apply until 60 days after the form is approved by the commissioner.
(c) A person violating this subdivision is subject to a penalty of $200 for each violation.
Sec. 29. APPRAISER
INTERNET COURSE REQUIREMENTS.
Notwithstanding Minnesota Statutes,
sections 45.305, subdivision 1a, and 45.306, subdivision 1a, education
providers may submit to the commissioner of commerce for approval a classroom
course under Minnesota Statutes, section 45.25, subdivision 2a, clause (3), or
a distance learning course, as defined in Minnesota Statutes, section 45.25,
subdivision 5a, that has not been approved by the International Distance
Education Certification Center.
EFFECTIVE
DATE. This section is
effective the day following final enactment and expires after the peacetime
emergency declared by the governor in an executive order that relates to the
infectious disease known as COVID-19 is terminated or rescinded or December 31,
2021, whichever is later.
Sec. 30. MINNESOTA
COUNCIL ON ECONOMIC EDUCATION.
(a) The Minnesota Council on Economic
Education, with funds made available through grants from the commissioner of
education in fiscal years 2022 and 2023, must:
(1) provide professional development to
Minnesota's kindergarten through grade 12 teachers implementing state
graduation standards in learning areas related to economic education;
(2) support the direct-to-student
ancillary economic and personal finance programs that Minnesota teachers
supervise and coach; and
(3) provide support to geographically
diverse affiliated higher education-based centers for economic education,
including those based at Minnesota State University Mankato, Minnesota State
University Moorhead, St. Cloud State University, St. Catherine University,
and the University of St. Thomas, as the centers' work relates to
activities in clauses (1) and (2).
(b) By February 15 of each year
following the receipt of a grant, the Minnesota Council on Economic Education
must report to the commissioner of education on the number and type of
in-person and online teacher professional development opportunities provided by
the Minnesota Council on Economic Education or affiliated state centers.
The
report must include a description of the content, length, and location of the
programs; the number of preservice and licensed teachers receiving professional
development through each of these opportunities; and a summary of evaluations
of professional opportunities for teachers.
(c) On August 15, 2021, the Department
of Education must pay the full amount of the grant for fiscal year 2022 to the
Minnesota Council on Economic Education.
On August 15, 2022, the Department of Education must pay the full amount
of the grant for fiscal year 2023 to the Minnesota Council on Economic
Education. The Minnesota Council on
Economic Education must submit its fiscal reporting in the form and manner
specified by the commissioner. The
commissioner may request additional information as necessary.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 31. CONSUMER
DEBT COLLECTION LANGUAGE BARRIER WORKING GROUP.
Subdivision 1. Establishment. The commissioner of commerce shall
convene a working group to review language barriers and the effect on creditors,
debt collectors, and limited English proficient communities.
Subd. 2. Membership. The working group consists of the
following members:
(1) the commissioner of commerce or a
designee;
(2) one member appointed by the Attorney
General's Office;
(3) two members of the public
representing creditors or debt collectors, appointed by the industry and
subject to approval by the commissioner of commerce;
(4) two members of the public
representing consumer rights, appointed by consumer rights advocate organizations
and subject to approval by the commissioner of commerce;
(5) one member appointed by the Council
for Minnesotans of African Heritage;
(6) one member appointed by the
Minnesota Council on Latino Affairs;
(7) one member appointed by the Council on
Asian-Pacific Minnesotans;
(8) two members appointed by the Indian
Affairs Council; and
(9) one member appointed by
Mid-Minnesota Legal Aid.
Subd. 3. Report. (a) By January 1, 2022, the
commissioner of commerce shall report to the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction
over commerce with the working group's recommendations to address language
barriers between creditors, debt collectors, and consumers.
(b) The working group shall examine:
(1) current practices for communicating
with consumers in the consumer's preferred language when attempting to collect
a debt or enforce a lien;
(2) the availability of translation
services or a written glossary of financial terms for consumers whose primary
language is not English; and
(3) state and federal laws involving
issues under clauses (1) and (2).
Sec. 32. COLLECTION
AGENCY EMPLOYEES; WORK FROM HOME.
An employee of a collection agency
licensed under Minnesota Statutes, chapter 332, may work from a location other
than the licensee's business location if the licensee and employee comply with
all the requirements of Minnesota Statutes, section 332.33, that would apply if
the employee were working at the business location. The fee for a collector registration or
renewal under Minnesota Statutes, section 332.33, subdivision 3, entitles the
individual collector to work at a licensee's business location or a location
otherwise acceptable under this section.
An additional branch license is not required for a location used under
this section. This section expires May
31, 2022.
Sec. 33. REPEALER.
Minnesota Statutes 2020, sections
45.017; 45.306, subdivision 1; and 115C.13, are repealed.
ARTICLE 7
ENERGY CONSERVATION AND STORAGE
Section 1. Minnesota Statutes 2020, section 16B.86, is amended to read:
16B.86
PRODUCTIVITY STATE BUILDING ENERGY CONSERVATION IMPROVEMENT REVOLVING
LOAN ACCOUNT.
Subdivision 1. Definitions. (a) For purposes of this section and
section 16B.87, the following terms have the meanings given.
(b) "Energy conservation" has
the meaning given in section 216B.241, subdivision 1, paragraph (d).
(c)
"Energy conservation improvement" has the meaning given in section
216B.241, subdivision 1, paragraph (e).
(d) "Energy efficiency" has
the meaning given in section 216B.241, subdivision 1, paragraph (f).
(e) "Project" means the energy
conservation improvements financed by a loan made under this section.
(f) "State building" means an
existing building owned by the state of Minnesota.
Subd. 2. Account
established. The productivity
state building energy conservation improvement revolving loan account is
established as a special separate account in the state
treasury. The commissioner shall
manage the account and shall credit to the account investment income,
repayments of principal and interest, and any other earnings arising from
assets of the account. Money in the
account is appropriated to the commissioner of administration to make loans to finance
agency projects that will result in either reduced operating costs or increased
revenues, or both, for a state agency state agencies to implement energy
conservation and energy efficiency improvements in state buildings under
section 16B.87.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 2. Minnesota Statutes 2020, section 16B.87, is amended to read:
16B.87
AWARD AND REPAYMENT OF PRODUCTIVITY STATE BUILDING ENERGY IMPROVEMENT
CONSERVATION LOANS.
Subdivision 1. Committee. The Productivity State Building
Energy Conservation Improvement Loan Committee consists of the
commissioners of administration, management and budget, and revenue commerce. The commissioner of administration serves as
chair of the committee. The members
serve without compensation or reimbursement for expenses.
Subd. 2. Award
and terms of loans. (a) An
agency shall apply for a loan on a form provided developed by the
commissioner of administration. that requires an applicant to submit
the following information:
(1) a description of the proposed
project, including existing equipment, structural elements, operating
characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
(2) the total estimated project cost
and the loan amount sought;
(3) a detailed project budget;
(4) projections of the proposed
project's expected energy and monetary savings;
(5) information demonstrating the
agency's ability to repay the loan;
(6) a description of the energy
conservation programs offered by the utility providing service to the state
building from which the applicant seeks additional funding for the project; and
(7) any additional information
requested by the commissioner.
(b) The committee shall review
applications for loans and shall award a loan based upon criteria adopted by
the committee. The committee shall
determine the amount, interest, and other terms of the loan. The time for repayment of a loan may not
exceed five years. A loan made under this section must:
(1) be at or below the market rate of
interest, including a zero interest loan; and
(2) have a term no longer than seven
years.
(c) In making awards, the committee
shall give preference to:
(1) applicants that have sought funding
for the project through energy conservation projects offered by the utility
serving the state building that is the subject of the application; and
(2) to the extent feasible,
applications for state buildings located within the electric retail service
area of the utility that is subject to section 116C.779.
Subd. 3. Repayment. An agency receiving a loan under this
section shall repay the loan according to the terms of the loan agreement. The principal and interest must be paid to
the commissioner of administration, who shall deposit it in the productivity
state building energy conservation improvement revolving loan fund
account. Payments of loan principal
and interest must begin no later than one year after the project is completed.
Sec. 3. [216B.1698]
INNOVATIVE CLEAN TECHNOLOGIES.
(a) For purposes of this section,
"innovative clean technology" means advanced energy technology that
is:
(1) environmentally superior to
technologies currently in use;
(2) expected to offer energy-related,
environmental, or economic benefits; and
(3) not widely deployed by the utility
industry.
(b)
A public utility may petition the commission for authorization to invest in a
project or projects to deploy one or more innovative clean technologies to
further the development, commercialization, and deployment of innovative clean
technologies that benefit the public utility's customers.
(c) The commission may approve a
petition under paragraph (b) if it finds:
(1) the technologies proposed are
innovative clean technologies;
(2) the investment in an innovative
clean energy technology is likely to provide benefits to customers that exceed
the technology's cost;
(3) the public utility is meeting its
energy conservation goals under section 216B.241; and
(4) the project complies with the
spending limits under paragraph (d).
(d) Over any three consecutive years, a
public utility must not spend more on innovative clean technologies under this
section than:
(1) for a public utility providing
service to 200,000 or more retail Minnesota customers, $6,000,000; or
(2) for a public utility providing
service to fewer than 200,000 retail Minnesota customers, $3,000,000.
(e) The commission may authorize a
public utility to file a rate schedule containing provisions that automatically
adjust charges for public utility service in direct relation to changes in
prudent costs incurred by a public utility under this section, up to the
amounts allowed under paragraph (d). To
the extent the public utility investment under this section is for a capital
asset, the utility may request that the asset be included in the utility's rate
base.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2020, section 216B.2401, is amended to read:
216B.2401
ENERGY SAVINGS AND OPTIMIZATION POLICY GOAL.
(a) The legislature finds that energy
savings are an energy resource, and that cost-effective energy savings are
preferred over all other energy resources.
In addition, the legislature finds that optimizing the timing and
method used by energy consumers to manage energy use provides significant
benefits to the consumers and to the utility system as a whole. The legislature further finds that
cost-effective energy savings and load management programs should be
procured systematically and aggressively in order to reduce utility costs for
businesses and residents, improve the competitiveness and profitability of
businesses, create more energy-related jobs, reduce the economic burden of fuel
imports, and reduce pollution and emissions that cause climate change. Therefore, it is the energy policy of the
state of Minnesota to achieve annual energy savings equal equivalent
to at least 1.5 2.5 percent of annual retail energy sales of
electricity and natural gas through cost-effective energy conservation
improvement programs and rate design, energy efficiency achieved by energy
consumers without direct utility involvement, energy codes and appliance
standards, programs designed to transform the market or change consumer
behavior, energy savings resulting from efficiency improvements to the utility
infrastructure and system, and other efforts to promote energy efficiency and
energy conservation. multiple measures, including but not limited to:
(1) cost-effective energy conservation
improvement programs and efficient fuel-switching utility programs under
sections 216B.2402 to 216B.241;
(2) rate design;
(3)
energy efficiency achieved by energy consumers without direct utility
involvement;
(4) advancements in statewide energy
codes and cost-effective appliance and equipment standards;
(5) programs designed to transform the
market or change consumer behavior;
(6) energy savings resulting from
efficiency improvements to the utility infrastructure and system; and
(7) other efforts to promote energy
efficiency and energy conservation.
(b) A utility is encouraged to design
and offer to customers load management programs that enable: (1) customers to maximize the economic value
gained from the energy purchased from the customer's utility service provider;
and (2) utilities to optimize the infrastructure and generation capacity needed
to effectively serve customers and facilitate the integration of renewable
energy into the energy system.
(c) The commissioner must provide a
reasonable estimate of progress made toward the statewide energy-savings goal
under paragraph (a) in the annual report required under section 216B.241,
subdivision 1c, and make recommendations for administrative or legislative
initiatives to increase energy savings toward that goal. The commissioner
must annually report on the energy productivity of the state's economy by
estimating the ratio of economic output produced in the most recently completed
calendar year to the primary energy inputs used in that year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. [216B.2402]
DEFINITIONS.
Subdivision 1. Definitions. For the purposes of section 216B.16,
subdivision 6b, and sections 216B.2401 to 216B.241, the following terms have
the meanings given them.
Subd. 2. Consumer-owned
utility. "Consumer-owned
utility" means a municipal gas utility, a municipal electric utility, or a
cooperative electric association.
Subd. 3. Cumulative
lifetime savings. "Cumulative
lifetime savings" means the total electric energy or natural gas savings
in a given year from energy conservation improvements installed in that given
year and energy conservation improvements installed in previous years that are
still in operation.
Subd. 4. Efficient
fuel-switching improvement. "Efficient
fuel-switching improvement" means a project that:
(1) replaces a fuel used by a customer
with electricity or natural gas delivered at retail by a utility subject to
section 216B.2403 or 216B.241;
(2) results in a net increase in the
use of electricity or natural gas and a net decrease in source energy
consumption on a fuel-neutral basis;
(3) otherwise meets the criteria
established for consumer-owned utilities in section 216B.2403, subdivision 8,
and for public utilities under section 216B.241, subdivisions 11 and 12; and
(4) requires the installation of
equipment that utilizes electricity or natural gas, resulting in a reduction or
elimination of the previous fuel used.
An efficient fuel-switching improvement is not an energy
conservation improvement or energy efficiency even if it results in a net
reduction in electricity or natural gas consumption.
Subd. 5. Energy
conservation. "Energy
conservation" means an action that results in a net reduction in
electricity or natural gas consumption. Energy
conservation does not include an efficient fuel-switching improvement.
Subd. 6. Energy
conservation improvement. "Energy
conservation improvement" means a project that results in energy
efficiency or energy conservation. Energy
conservation improvement may include waste heat that is recovered and converted
into electricity or used as thermal energy, but does not include electric
utility infrastructure projects approved by the commission under section
216B.1636.
Subd. 7. Energy
efficiency. "Energy
efficiency" means measures or programs, including energy conservation
measures or programs, that: (1) target
consumer behavior, equipment, processes, or devices; (2) are designed to reduce
the consumption of electricity or natural gas on either an absolute or per unit
of production basis; and (3) do not reduce the quality or level of service
provided to an energy consumer.
Subd. 8. Fuel. "Fuel" means energy,
including electricity, propane, natural gas, heating oil, gasoline, diesel
fuel, or steam, consumed by a retail utility customer.
Subd. 9. Fuel
neutral. "Fuel
neutral" means an approach that compares the use of various fuels for a
given end use, using a common metric.
Subd. 10. Gross
annual retail energy sales. "Gross
annual retail energy sales" means a utility's annual electric sales to all
Minnesota retail customers, or natural gas throughput to all retail customers,
including natural gas transportation customers, on a utility's distribution
system in Minnesota. Gross annual retail
energy sales does not include:
(1) gas sales to:
(i) a large energy facility;
(ii) a large customer facility whose
natural gas utility has been exempted by the commissioner under section
216B.241, subdivision 1a, paragraph (a), with respect to natural gas sales made
to the large customer facility; or
(iii) a commercial gas customer
facility whose natural gas utility has been exempted by the commissioner under
section 216B.241, subdivision 1a, paragraph (b), with respect to natural gas
sales made to the commercial gas customer facility;
(2) electric sales to a large customer
facility whose electric utility has been exempted by the commissioner under
section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales
made to the large customer facility; or
(3) the amount of electric sales prior
to December 31, 2032, that are associated with a utility's program, rate, or
tariff for electric vehicle charging based on a methodology and assumptions
developed by the department in consultation with interested stakeholders no
later than December 31, 2021. After
December 31, 2032, incremental sales to electric vehicles must be included in
calculating a utility's gross annual retail sales.
Subd. 11. Investments
and expenses of a public utility. "Investments
and expenses of a public utility" means the investments and expenses
incurred by a public utility in connection with an energy conservation
improvement.
Subd. 12. Large
customer facility. "Large
customer facility" means all buildings, structures, equipment, and
installations at a single site that in aggregate: (1) impose a peak electrical demand on an
electric utility's system of at least 20,000 kilowatts, measured in the same
manner as the utility that serves the customer facility measures electric
demand for billing purposes; or (2) consume at least 500,000,000 cubic feet of
natural gas annually. When
calculating
peak electrical demand, a large customer facility may include demand offset by
on-site cogeneration facilities and, if engaged in mineral extraction, may
include peak energy demand from the large customer facility's mining processing
operations.
Subd. 13. Large
energy facility. "Large
energy facility" has the meaning given in section 216B.2421, subdivision
2, clause (1).
Subd. 14. Lifetime
energy savings. "Lifetime
energy savings" means the amount of savings a particular energy
conservation improvement is projected to produce over the improvement's
effective useful lifetime.
Subd. 15. Load
management. "Load
management" means an activity, service, or technology that changes the
timing or the efficiency of a customer's use of energy that allows a utility or
a customer to: (1) respond to local and
regional energy system conditions; or (2) reduce peak demand for electricity or
natural gas. Load management that
reduces a customer's net annual energy consumption is also energy conservation.
Subd. 16. Low-income
household. "Low-income
household" means a household whose household income is 60 percent or less
of the state median household income.
Subd. 17. Low-income
programs. "Low-income
programs" means energy conservation improvement programs that directly
serve the needs of low-income households, including low-income renters.
Subd. 18. Member. "Member" has the meaning
given in section 308B.005, subdivision 15.
Subd. 19. Multifamily
building. "Multifamily
building" means a residential building containing five or more dwelling
units.
Subd. 20. Preweatherization
measure. "Preweatherization
measure" means an improvement that is necessary to allow energy
conservation improvements to be installed in a home.
Subd. 21. Qualifying
utility. "Qualifying
utility" means a utility that supplies a customer with energy that enables
the customer to qualify as a large customer facility.
Subd. 22. Waste
heat recovered and used as thermal energy.
"Waste heat recovered and used as thermal energy" means
the capture of heat energy that would otherwise be exhausted or dissipated to
the environment from machinery, buildings, or industrial processes, and
productively using the recovered thermal energy where it was captured or
distributing it as thermal energy to other locations where it is used to reduce
demand-side consumption of natural gas, electric energy, or both.
Subd. 23. Waste
heat recovery converted into electricity.
"Waste heat recovery converted into electricity" means
an energy recovery process that converts to electricity energy from the heat of
exhaust stacks or pipes used for engines or manufacturing or industrial
processes, or from the reduction of high pressure in water or gas pipelines,
that would otherwise be lost.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. [216B.2403]
CONSUMER-OWNED UTILITIES; ENERGY CONSERVATION AND OPTIMIZATION.
Subdivision 1. Applicability. This section applies to:
(1) a cooperative electric association
that provides retail service to more than 5,000 members;
(2)
a municipality that provides electric service to more than 1,000 retail
customers; and
(3) a municipality with more than
1,000,000,000 cubic feet in annual throughput sales to natural gas retail
customers.
Subd. 2. Consumer-owned
utility; energy-savings goal. (a)
Each individual consumer-owned utility subject to this section has an annual
energy-savings goal equivalent to 1.5 percent of gross annual retail energy
sales, which must be met with a minimum of energy savings from energy
conservation improvements equivalent to at least one percent of the
consumer-owned utility's gross annual retail energy sales. The balance of energy savings toward the
annual energy-savings goal may be achieved only by the following consumer-owned
utility activities:
(1) energy savings from additional
energy conservation improvements;
(2) electric utility infrastructure
projects, as defined in section 216B.1636, subdivision 1, that result in
increased efficiency greater than would have occurred through normal
maintenance activity;
(3) net energy savings from efficient
fuel-switching improvements that meet the criteria under subdivision 8; or
(4) subject to department approval,
demand-side natural gas or electric energy displaced by use of waste heat
recovered and used as thermal energy, including the recovered thermal energy
from a cogeneration or combined heat and power facility.
(b) The energy-savings goals specified
in this section must be calculated based on weather-normalized sales averaged
over the most recent three years. A
consumer-owned utility may elect to carry forward energy savings in excess of
1.5 percent for a year to the next three years, except that energy savings from
electric utility infrastructure projects may be carried forward for five years. A particular energy savings can only be used
to meet one year's goal.
(c) A consumer-owned utility subject to
this section is not required to make energy conservation improvements that are
not cost-effective, even if the improvement is necessary to attain the
energy-savings goal. A consumer‑owned
utility subject to this section must make reasonable efforts to implement
energy conservation improvements that exceed the minimum level established
under this subdivision if cost-effective opportunities and funding are
available, considering other potential investments the consumer-owned utility
intends to make to benefit customers during the term of the plan filed under
subdivision 3.
Subd. 3. Consumer-owned
utility; energy conservation and optimization plans. (a) By June 1, 2022, and at least
every three years thereafter, each consumer-owned utility must file with the
commissioner an energy conservation and optimization plan that describes the
programs for energy conservation, efficient fuel-switching, load management,
and other measures the consumer-owned utility intends to offer to achieve the
utility's energy savings goal.
(b) A plan's term may extend up to three
years. A multiyear plan must identify
the total energy savings and energy savings resulting from energy conservation
improvements that are projected to be achieved in each year of the plan. A multiyear plan that does not, in each year
of the plan, meet both the minimum energy savings goal from energy conservation
improvements and the total energy savings goal of 1.5 percent, or lower goals
adjusted by the commissioner under paragraph (k), must:
(1) state why each goal is projected to
be unmet; and
(2) demonstrate how the consumer-owned
utility proposes to meet both goals on an average basis over the duration of
the plan.
(c) A plan filed under this subdivision
must provide:
(1)
for existing programs, an analysis of the cost-effectiveness of the
consumer-owned utility's programs offered under the plan, using a list of
baseline energy- and capacity-savings assumptions developed in consultation
with the department; and
(2) for new programs, a preliminary
analysis upon which the program will proceed, in parallel with further
development of assumptions and standards.
(d) The commissioner must evaluate a
plan filed under this subdivision based on the plan's likelihood to achieve the
energy-savings goals established in subdivision 2. The commissioner may make recommendations to
a consumer-owned utility regarding ways to increase the effectiveness of the
consumer-owned utility's energy conservation activities and programs under this
subdivision. The commissioner may
recommend that a consumer‑owned utility implement a cost-effective energy
conservation program, including an energy conservation program suggested by an
outside source, including but not limited to a political subdivision, nonprofit
corporation, or community organization.
(e) Beginning June 1, 2023, and every
June 1 thereafter, each consumer-owned utility must file: (1) an annual update identifying the status
of the plan filed under this subdivision, including: (i) total expenditures and investments made
to date under the plan; and (ii) any intended changes to the plan; and (2) a
summary of the annual energy-savings achievements under a plan. An annual filing made in the last year of a
plan must contain a new plan that complies with this section.
(f) When evaluating the
cost-effectiveness of a consumer-owned utility's energy conservation programs,
the consumer-owned utility and the commissioner must consider the costs and
benefits to ratepayers, the utility, participants, and society. The commissioner must also consider the rate
at which the consumer-owned utility is increasing energy savings and
expenditures on energy conservation, and lifetime energy savings and cumulative
energy savings.
(g) A consumer-owned utility may
annually spend and invest up to ten percent of the total amount spent and
invested on energy conservation improvements on research and development
projects that meet the definition of energy conservation improvement.
(h) A generation and transmission
cooperative electric association or municipal power agency that provides energy
services to consumer-owned utilities may file a plan under this subdivision on
behalf of the consumer-owned utilities to which the association or agency
provides energy services and may make investments, offer conservation programs,
and otherwise fulfill the energy-savings goals and reporting requirements under
this subdivision for the consumer-owned utilities on an aggregate basis.
(i) A consumer-owned utility is
prohibited from spending for or investing in energy conservation improvements
that directly benefit a large energy facility or a large electric customer
facility the commissioner has exempted under section 216B.241, subdivision 1a.
(j) The energy conservation and
optimization plan of a consumer-owned utility may include activities to improve
energy efficiency in the public schools served by the utility. These activities may include programs to:
(1) increase the efficiency of the
school's lighting and heating and cooling systems;
(2) recommission buildings;
(3) train building operators; and
(4) provide opportunities to educate
students, teachers, and staff regarding energy efficiency measures implemented
at the school.
(k)
A consumer-owned utility may request that the commissioner adjust the
consumer-owned utility's minimum goal for energy savings from energy
conservation improvements under subdivision 2, paragraph (a), for the duration
of the plan filed under this subdivision.
The request must be made by January 1 of the year the consumer-owned
utility is required to file a plan under this subdivision. The request must be based on:
(1) historical energy conservation
improvement program achievements;
(2) customer class makeup;
(3) projected load growth;
(4) an energy conservation potential
study that estimates the amount of cost-effective energy conservation potential
that exists in the consumer-owned utility's service territory;
(5) the cost-effectiveness and quality
of the energy conservation programs offered by the consumer-owned utility; and
(6) other factors the commissioner and
consumer-owned utility determine warrant an adjustment.
The commissioner must adjust the energy savings goal to a
level the commissioner determines is supported by the record, but must not
approve a minimum energy savings goal from energy conservation improvements
that is less than an average of one percent per year over the consecutive years
of the plan's duration, including the year the minimum energy savings goal is
adjusted.
Subd. 4. Consumer-owned
utility; energy savings investment. (a)
Except as otherwise provided, a consumer‑owned utility that the
commissioner determines falls short of the minimum energy savings goal from
energy conservation improvements established in subdivision 2, paragraph (a),
for three consecutive years during which the utility has annually spent on
energy conservation improvements less than 1.5 percent of gross operating
revenues for an electric utility, or less than 0.5 percent of gross operating
revenues for a natural gas utility, must spend no less than the following
amounts for energy conservation improvements:
(1) for a municipality, 0.5 percent of
gross operating revenues from the sale of gas and 1.5 percent of gross
operating revenues from the sale of electricity, excluding gross operating
revenues from electric and gas service provided in Minnesota to large electric
customer facilities; and
(2) for a cooperative electric association,
1.5 percent of gross operating revenues from service provided in Minnesota,
excluding gross operating revenues from service provided in Minnesota to large
electric customers facilities indirectly through a distribution cooperative
electric association.
(b) The commissioner must not impose the
spending requirement under this subdivision if the commissioner has determined
that the utility has followed the commissioner's recommendations, if any,
provided under subdivision 3, paragraph (d).
(c) Upon request of a consumer-owned
utility, the commissioner may reduce the amount or duration of the spending
requirement imposed under this subdivision, or both, if the commissioner
determines that the consumer‑owned utility's failure to maintain the
minimum energy savings goal is the result of:
(1) a natural disaster or other
emergency that is declared by the executive branch through an emergency
executive order that affects the consumer-owned utility's service area;
(2) a unique load distribution
experienced by the consumer-owned utility; or
(3) other factors that the commissioner
determines justifies a reduction.
(d)
Unless the commissioner reduces the duration of the spending requirement under
paragraph (c), the spending requirement under this subdivision remains in
effect until the consumer-owned utility has met the minimum energy savings goal
for three consecutive years.
Subd. 5. Energy
conservation programs for low-income households. (a) A consumer-owned utility subject
to this section must provide energy conservation programs to low-income
households. The commissioner must
evaluate a consumer-owned utility's plans under this section by considering the
consumer-owned utility's historic spending on energy conservation programs
directed to low-income households, the rate of customer participation in and
the energy savings resulting from those programs, and the number of low-income
persons residing in the consumer-owned utility's service territory. A municipal utility that furnishes natural
gas service must spend at least 0.2 percent of the municipal utility's most
recent three-year average gross operating revenue from residential customers in
Minnesota on energy conservation programs for low-income households. A consumer-owned utility that furnishes
electric service must spend at least 0.2 percent of the consumer-owned
utility's gross operating revenue from residential customers in Minnesota on
energy conservation programs for low-income households. The requirement under this paragraph applies
to each generation and transmission cooperative association's aggregate gross
operating revenue from the sale of electricity to residential customers in
Minnesota by all of the association's member distribution cooperatives.
(b) To meet all or part of the spending
requirements of paragraph (a), a consumer-owned utility may contribute money to
the energy and conservation account established in section 216B.241,
subdivision 2a. An energy conservation
optimization plan must state the amount of contributions the consumer-owned
utility plans to make to the energy and conservation account. Contributions to the account must be used for
energy conservation programs serving low-income households, including renters,
located in the service area of the consumer-owned utility making the
contribution. Contributions must be
remitted to the commissioner by February 1 each year.
(c) The commissioner must establish
energy conservation programs for low-income households funded through
contributions made to the energy and conservation account under paragraph (b). When establishing energy conservation
programs for low-income households, the commissioner must consult political
subdivisions, utilities, and nonprofit and community organizations, including
organizations providing energy and weatherization assistance to low-income
households. The commissioner must record
and report expenditures and energy savings achieved as a result of energy
conservation programs for low-income households funded through the energy and
conservation account in the report required under section 216B.241, subdivision
1c, paragraph (f). The commissioner may
contract with a political subdivision, nonprofit or community organization,
public utility, municipality, or consumer‑owned utility to implement
low-income programs funded through the energy and conservation account.
(d) A consumer-owned utility may
petition the commissioner to modify the required spending under this
subdivision if the consumer-owned utility and the commissioner were unable to
expend the amount required for three consecutive years.
(e) The commissioner must develop and
establish guidelines for determining the eligibility of multifamily buildings
to participate in energy conservation programs provided to low-income
households. Notwithstanding the
definition of low-income household in section 216B.2402, a consumer-owned
utility or association may apply the most recent guidelines published by the
department for purposes of determining the eligibility of multifamily buildings
to participate in low-income programs. The
commissioner must convene a stakeholder group to review and update these
guidelines by July 1, 2022, and at least once every five years thereafter. The stakeholder group must include but is not
limited to representatives of public utilities; municipal electric or gas
utilities; electric cooperative associations; multifamily housing owners and
developers; and low-income advocates.
(f) Up to 15 percent of a
consumer-owned utility's spending on low-income energy conservation programs
may be spent on preweatherization measures.
A consumer-owned utility is prohibited from claiming energy savings from
preweatherization measures toward the consumer-owned utility's energy savings
goal.
(g)
The commissioner must, by order, establish a list of preweatherization measures
eligible for inclusion in low‑income energy conservation programs no
later than March 15, 2022.
(h) A consumer-owned utility may elect
to contribute money to the Healthy AIR account under section 216B.241,
subdivision 7, paragraph (h), to provide preweatherization measures for
households eligible for weatherization assistance from the state weatherization
assistance program in section 216C.264. Remediation
activities must be executed in conjunction with federal weatherization
assistance program services.
Subd. 6. Recovery
of expenses. The commission
must allow a cooperative electric association subject to rate regulation under
section 216B.026 to recover expenses resulting from: (1) a plan under this section; and (2)
assessments and contributions to the energy and conservation account under
section 216B.241, subdivision 2a.
Subd. 7. Ownership
of preweatherization measure or energy conservation improvement. (a) A preweatherization measure or
energy conservation improvement installed in a building under this section,
excluding a system owned by a consumer-owned utility that is designed to turn
off, limit, or vary the delivery of energy, is the exclusive property of the
building owner, except to the extent that the improvement is subject to a
security interest in favor of the consumer-owned utility in case of a loan to
the building owner for the improvement.
(b) A consumer-owned utility has no liability for loss, damage, or injury directly or indirectly caused by a preweatherization measure or energy conservation improvement, unless a consumer-owned utility is determined to have been negligent in purchasing, installing, or modifying a preweatherization measure or energy conservation improvement.
Subd. 8. Criteria
for efficient fuel-switching improvements.
(a) A fuel-switching improvement is deemed efficient if, applying
the technical criteria established under section 216B.241, subdivision 1d,
paragraph (b), the improvement, relative to the fuel being displaced:
(1) results in a net reduction in the
amount of source energy consumed for a particular use, measured on a fuel‑neutral
basis;
(2)
results in a net reduction of statewide greenhouse gas emissions, as defined in
section 216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching improvement
installed by an electric consumer-owned utility, the reduction in emissions
must be measured based on the hourly emissions profile of the consumer-owned
utility or the utility's electricity supplier, as reported in the most recent
resource plan approved by the commission under section 216B.2422. If the hourly emissions profile is not
available, the commissioner must develop a method consumer-owned utilities must
use to estimate that value;
(3) is cost-effective, considering the
costs and benefits from the perspective of the consumer-owned utility,
participants, and society; and
(4) is installed and operated in a
manner that improves the consumer-owned utility's system load factor.
(b) For purposes of this subdivision,
"source energy" means the total amount of primary energy required to
deliver energy services, adjusted for losses in generation, transmission, and
distribution, and expressed on a fuel‑neutral basis.
Subd. 9. Manner
of filing and service. (a) A
consumer-owned utility must submit the filings required under this section to
the department using the department's electronic filing system. The commissioner may approve an exemption
from this requirement if a consumer-owned utility is unable to submit filings
via the department's electronic filing system.
All other interested parties must submit filings to the department via
the department's electronic filing system whenever practicable but may also
file by personal delivery or by mail.
(b)
The submission of a document to the department's electronic filing system
constitutes service on the department. If
a department rule requires service of a notice, order, or other document by the
department, a consumer-owned utility, or an interested party upon persons on a
service list maintained by the department, service may be made by personal
delivery, mail, or electronic service. Electronic
service may be made only to persons on the service list that have previously
agreed in writing to accept electronic service at an email address provided to
the department for electronic service purposes.
Subd. 10. Assessment. The commission or department may
assess consumer-owned utilities subject to this section to carry out the
purposes of section 216B.241, subdivisions 1d, 1e, and 1f. An assessment under this subdivision must be
proportionate to a consumer-owned utility's gross operating revenue from sales
of gas or electric service in Minnesota during the previous calendar year, as
applicable. Assessments under this
subdivision are not subject to the cap on assessments under section 216B.62 or
any other law.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2020, section 216B.241, subdivision 1a, is amended to read:
Subd. 1a. Investment,
expenditure, and contribution; public utility Large customer facility. (a) For purposes of this subdivision
and subdivision 2, "public utility" has the meaning given it in
section 216B.02, subdivision 4. Each
public utility shall spend and invest for energy conservation improvements
under this subdivision and subdivision 2 the following amounts:
(1) for a utility that furnishes gas
service, 0.5 percent of its gross operating revenues from service provided in
the state;
(2) for a utility that furnishes electric
service, 1.5 percent of its gross operating revenues from service provided in
the state; and
(3) for a utility that furnishes electric
service and that operates a nuclear-powered electric generating plant within
the state, two percent of its gross operating revenues from service provided in
the state.
For purposes of this paragraph (a),
"gross operating revenues" do not include revenues from large
customer facilities exempted under paragraph
(b), or from commercial gas customers that are exempted under paragraph (c) or
(e).
(b) (a) The owner of a large
customer facility may petition the commissioner to exempt both electric and gas
utilities serving the large customer facility from the investment and
expenditure requirements of paragraph (a) contributing to investments
and expenditures made under an energy and conservation optimization plan filed
under subdivision 2 or section 216B.2403, subdivision 3, with respect to
retail revenues attributable to the large customer facility. The filing must include a discussion of the
competitive or economic pressures facing the owner of the facility and the
efforts taken by the owner to identify, evaluate, and implement energy
conservation and efficiency improvements.
A filing submitted on or before October 1 of any year must be approved
within 90 days and become effective January 1 of the year following the filing,
unless the commissioner finds that the owner of the large customer facility has
failed to take reasonable measures to identify, evaluate, and implement energy
conservation and efficiency improvements.
If a facility qualifies as a large customer facility solely due to its
peak electrical demand or annual natural gas usage, the exemption may be
limited to the qualifying utility if the commissioner finds that the owner of
the large customer facility has failed to take reasonable measures to identify,
evaluate, and implement energy conservation and efficiency improvements with
respect to the nonqualifying utility. Once
an exemption is approved, the commissioner may request the owner of a large
customer facility to submit, not more often than once every five years, a
report demonstrating the large customer facility's ongoing commitment to energy
conservation and efficiency improvement after the exemption filing. The commissioner may request such reports for
up to ten years after the effective date of the exemption, unless the majority
ownership of the large customer
facility changes, in which case the commissioner may request additional reports for up to ten years after the change in ownership occurs. The commissioner may, within 180 days of receiving a report submitted under this paragraph, rescind any exemption granted under this paragraph upon a determination that the large customer facility is not continuing to make reasonable efforts to identify, evaluate, and implement energy conservation improvements. A large customer facility that is, under an order from the commissioner, exempt from the investment and expenditure requirements of paragraph (a) as of December 31, 2010, is not required to submit a report to retain its exempt status, except as otherwise provided in this paragraph with respect to ownership changes. No exempt large customer facility may participate in a utility conservation improvement program unless the owner of the facility submits a filing with the commissioner to withdraw its exemption.
(c) (b) A commercial gas
customer that is not a large customer facility and that purchases or acquires
natural gas from a public utility having fewer than 600,000 natural gas
customers in Minnesota may petition the commissioner to exempt gas utilities
serving the commercial gas customer from the investment and expenditure
requirements of paragraph (a) contributing to investments and
expenditures made under an energy and conservation optimization plan filed
under subdivision 2 or section 216B.2403, subdivision 3, with respect to
retail revenues attributable to the commercial gas customer. The petition must be supported by evidence
demonstrating that the commercial gas customer has acquired or can reasonably
acquire the capability to bypass use of the utility's gas distribution system
by obtaining natural gas directly from a supplier not regulated by the
commission. The commissioner shall grant
the exemption if the commissioner finds that the petitioner has made the
demonstration required by this paragraph.
(d) The commissioner may require
investments or spending greater than the amounts required under this
subdivision for a public utility whose most recent advance forecast required
under section 216B.2422 or 216C.17 projects a peak demand deficit of 100
megawatts or greater within five years under midrange forecast assumptions.
(e) (c) A public utility,
consumer-owned utility, or owner of a large customer facility may appeal a
decision of the commissioner under paragraph (a) or (b), (c), or (d)
to the commission under subdivision 2. In
reviewing a decision of the commissioner under paragraph (a) or (b), (c),
or (d), the commission shall rescind the decision if it finds that the
required investments or spending will:
(1) not result in cost-effective energy
conservation improvements; or
(2) otherwise the decision is
not be in the public interest.
(d) A public utility is prohibited from
spending for or investing in energy conservation improvements that directly
benefit a large energy facility or a large electric customer facility to which
the commissioner has issued an exemption under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2020, section 216B.241, subdivision 1c, is amended to read:
Subd. 1c. Public
utility; energy-saving goals. (a)
The commissioner shall establish energy-saving goals for energy conservation improvement
expenditures improvements and shall evaluate an energy conservation
improvement program on how well it meets the goals set.
(b) Each individual A public
utility and association shall have providing electric service has
an annual energy‑savings goal equivalent to 1.5 1.75
percent of gross annual retail energy sales unless modified by the commissioner
under paragraph (d). (c). A public utility providing natural gas
service has an annual energy-savings goal equivalent to one percent of gross
annual retail energy sales, which must not be lowered by the commissioner. The savings goals must be calculated based on
the most recent three-year weather-normalized average. A public utility or association
providing electric service may elect to carry forward energy savings in
excess of 1.5
1.75 percent
for a year to the succeeding three calendar years, except that savings from
electric utility infrastructure projects allowed under paragraph (d) may be
carried forward for five years. A
public utility providing natural gas service may elect to carry forward energy
savings in excess of one percent for a year to the succeeding three calendar
years. A particular energy savings
can only be used only for to meet one year's goal.
(c) The commissioner must adopt a filing
schedule that is designed to have all utilities and associations operating
under an energy-savings plan by calendar year 2010.
(d) (c) In its energy
conservation improvement and optimization plan filing, a public
utility or association may request the commissioner to adjust its annual
energy-savings percentage goal based on its historical conservation investment
experience, customer class makeup, load growth, a conservation potential study,
or other factors the commissioner determines warrants an adjustment.
(d) The commissioner may not approve a plan of a public utility that provides for an annual energy-savings goal of less than one percent of gross annual retail energy sales from energy conservation improvements.
A utility or association may include in
its energy conservation plan energy savings from The balance of the
1.75 percent annual energy savings goal may be achieved through energy
savings from:
(1) additional energy conservation
improvements;
(2) electric utility infrastructure
projects approved by the commission under section 216B.1636 that result in
increased efficiency greater than would have occurred through normal
maintenance activity; or waste heat recovery converted into electricity
projects that may count as energy savings in addition to a minimum
energy-savings goal of at least one percent for energy conservation
improvements. Energy savings from
electric utility infrastructure projects, as defined in section 216B.1636, may
be included in the energy conservation plan of a municipal utility or
cooperative electric association. Electric
utility infrastructure projects must result in increased energy efficiency
greater than that which would have occurred through normal maintenance activity
(3) subject to department approval, demand-side natural gas or electric energy displaced by use of waste heat recovered and used as thermal energy, including the recovered thermal energy from a cogeneration or combined heat and power facility.
(e) An energy-savings goal is not
satisfied by attaining the revenue expenditure requirements of subdivisions 1a
and 1b, but can only be satisfied by meeting the energy-savings goal
established in this subdivision.
(f) An association or (e) A public
utility is not required to make energy conservation investments to attain the
energy-savings goals of this subdivision that are not cost-effective even if
the investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, in
determining cost-effectiveness, the commissioner shall consider: (1) the costs and benefits to ratepayers,
the utility, participants, and society.
In addition, the commissioner shall consider; (2) the rate at
which an association or municipal a public utility is increasing both
its energy savings and its expenditures on energy conservation; and (3) the
public utility's lifetime energy savings and cumulative energy savings.
(g) (f) On an annual basis, the
commissioner shall produce and make publicly available a report on the annual
energy and capacity savings and estimated carbon dioxide reductions
achieved by the energy conservation improvement programs under this
section and section 216B.2403 for the two most recent years for which data
is available. The report must also
include information regarding any annual energy sales or generation capacity
increases resulting from efficient fuel-switching improvements. The commissioner shall report on program
performance both in the aggregate and for each entity filing an energy
conservation improvement plan for approval or review by the commissioner,
and must estimate progress made toward the statewide energy-savings goal under
section 216B.2401.
(h)
By January 15, 2010, the commissioner shall report to the legislature whether
the spending requirements under subdivisions 1a and 1b are necessary to achieve
the energy-savings goals established in this subdivision.
(i) This subdivision does not apply to:
(1) a cooperative electric association
with fewer than 5,000 members;
(2) a municipal utility with fewer than
1,000 retail electric customers; or
(3) a municipal utility with less than
1,000,000,000 cubic feet in annual throughput sales to retail natural gas
customers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2020, section 216B.241, subdivision 1d, is amended to read:
Subd. 1d. Technical
assistance. (a) The commissioner
shall evaluate energy conservation improvement programs filed under this
section and section 216B.2403 on the basis of cost-effectiveness and the
reliability of the technologies employed.
The commissioner shall, by order, establish, maintain, and update
energy-savings assumptions that must be used by utilities when filing
energy conservation improvement programs.
The department must track a public utility's or consumer-owned
utility's lifetime energy savings and cumulative lifetime energy savings
reported in plans submitted under this section and section 216B.2403.
(b) The commissioner shall establish
an inventory of the most effective energy conservation programs, techniques,
and technologies, and encourage all Minnesota utilities to implement them,
where appropriate, in their service territories. The commissioner shall describe these
programs in sufficient detail to provide a utility reasonable guidance
concerning implementation. The
commissioner shall prioritize the opportunities in order of potential energy
savings and in order of cost-effectiveness.
(c) The commissioner may contract with a third party to carry out any of the commissioner's duties under this subdivision, and to obtain technical assistance to evaluate the effectiveness of any conservation improvement program.
(d) The commissioner may assess up to $850,000 annually for the purposes of this subdivision. The assessments must be deposited in the state treasury and credited to the energy and conservation account created under subdivision 2a. An assessment made under this subdivision is not subject to the cap on assessments provided by section 216B.62, or any other law.
(b) Of the assessment authorized under
paragraph (a), the commissioner may expend up to $400,000 annually for the
purpose of developing, operating, maintaining, and providing technical support
for a uniform electronic data reporting and tracking system available to all
utilities subject to this section, in order to enable accurate measurement of
the cost and energy savings of the energy conservation improvements required by
this section. This paragraph expires
June 30, 2018.
(e) The commissioner must work with
stakeholders to develop technical guidelines that public utilities and
consumer-owned utilities must use to:
(1)
determine whether deployment of a fuel-switching improvement meets the criteria
established in subdivision 11, paragraph (e), or section 216B.2403,
subdivision 8, as applicable; and
(2) calculate the amount of energy saved
by deploying a fuel-switching improvement.
The guidelines under this paragraph must be issued by the
commissioner by order no later than March 15, 2022, and must be updated as the
commissioner determines is necessary.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2020, section 216B.241, subdivision 1f, is amended to read:
Subd. 1f. Facilities energy efficiency. (a) The commissioner of administration and the commissioner of commerce shall maintain and, as needed, revise the sustainable building design guidelines developed under section 16B.325.
(b) The commissioner of administration and the commissioner of commerce shall maintain and update the benchmarking tool developed under Laws 2001, chapter 212, article 1, section 3, so that all public buildings can use the benchmarking tool to maintain energy use information for the purposes of establishing energy efficiency benchmarks, tracking building performance, and measuring the results of energy efficiency and conservation improvements.
(c) The commissioner shall require that
utilities include in their conservation improvement plans programs that
facilitate professional engineering verification to qualify a building as
Energy Star-labeled, Leadership in Energy and Environmental Design (LEED)
certified, or Green Globes-certified. The
state goal is to achieve certification of 1,000 commercial buildings as Energy
Star-labeled, and 100 commercial buildings as LEED-certified or Green
Globes-certified by December 31, 2010.
(d) The commissioner may assess up to $500,000 annually for the purposes of this subdivision. The assessments must be deposited in the state treasury and credited to the energy and conservation account created under subdivision 2a. An assessment made under this subdivision is not subject to the cap on assessments provided by section 216B.62, or any other law.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2020, section 216B.241, subdivision 1g, is amended to read:
Subd. 1g. Manner
of filing and service. (a) A public
utility, generation and transmission cooperative electric association,
municipal power agency, cooperative electric association, and municipal utility
shall submit filings to the department via the department's electronic filing
system. The commissioner may approve an
exemption from this requirement in the event an affected a public
utility or association is unable to submit filings via the department's
electronic filing system. All other
interested parties shall submit filings to the department via the department's
electronic filing system whenever practicable but may also file by personal
delivery or by mail.
(b) Submission of a document to the
department's electronic filing system constitutes service on the department. Where department rule requires service of a
notice, order, or other document by the department, public utility, association,
or interested party upon persons on a service list maintained by the
department, service may be made by personal delivery, mail, or electronic
service, except that electronic service may only be made upon persons on the
service list who have previously agreed in writing to accept electronic service
at an electronic address provided to the department for electronic service purposes.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2020, section 216B.241, subdivision 2, is amended to read:
Subd. 2. Programs
Public utility; energy conservation and optimization plans. (a) The commissioner may require a
public utilities utility to make investments and expenditures in
energy conservation improvements, explicitly setting forth the interest rates,
prices, and terms under which the improvements must be offered to the customers. The required programs must cover no more
than a three-year period.
(b)
A public utilities utility shall file an energy
conservation improvement plans and optimization plan by June 1,
on a schedule determined by order of the commissioner, but at least every three
years. Plans received As
provided in subdivisions 11 to 13, plans may include programs for efficient
fuel-switching improvements and load management. An individual utility program may combine
elements of energy conservation, load management, or efficient fuel-switching. The plan must estimate the lifetime energy
savings and cumulative lifetime energy savings projected to be achieved under
the plan. A plan filed by a public
utility by June 1 must be approved or approved as modified by the commissioner
by December 1 of that same year.
(c) The commissioner shall evaluate
the program plan on the basis of cost-effectiveness and the
reliability of technologies employed. The
commissioner's order must provide to the extent practicable for a free choice,
by consumers participating in the an energy conservation program,
of the device, method, material, or project constituting the energy
conservation improvement and for a free choice of the seller, installer, or
contractor of the energy conservation improvement, provided that the device,
method, material, or project seller, installer, or contractor is duly licensed,
certified, approved, or qualified, including under the residential conservation
services program, where applicable.
(b) (d) The commissioner may
require a utility subject to subdivision 1c to make an energy conservation
improvement investment or expenditure whenever the commissioner finds that the
improvement will result in energy savings at a total cost to the utility less
than the cost to the utility to produce or purchase an equivalent amount of new
supply of energy. The commissioner
shall nevertheless ensure that every public utility operate one or more
programs under periodic review by the department.
(c) (e) Each public utility
subject to this subdivision 1a may spend and invest annually up
to ten percent of the total amount required to be spent and invested on
energy conservation improvements under this section by the public
utility on research and development projects that meet the definition of energy
conservation improvement in subdivision 1 and that are funded directly by
the public utility.
(d) A public utility may not spend for or
invest in energy conservation improvements that directly benefit a large energy
facility or a large electric customer facility for which the commissioner has
issued an exemption pursuant to subdivision 1a, paragraph (b).
(f) The commissioner shall consider
and may require a public utility to undertake a an energy
conservation program suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization.
(e) (g) A public
utility, a political subdivision, or a nonprofit or community organization that
has suggested a an energy conservation program, the attorney
general acting on behalf of consumers and small business interests, or a public
utility customer that has suggested a an energy conservation
program and is not represented by the attorney general under section 8.33 may
petition the commission to modify or revoke a department decision under this
section, and the commission may do so if it determines that the energy
conservation program is not cost-effective, does not adequately address the
residential conservation improvement needs of low-income persons, has a long‑range
negative effect on one or more classes of customers, or is otherwise not in the
public interest. The commission shall
reject a petition that, on its face, fails to make a reasonable argument that a
an energy conservation program is not in the public interest.
(f) (h) The commissioner may
order a public utility to include, with the filing of the public
utility's annual status report, the results of an independent audit of the public
utility's conservation improvement programs and expenditures performed by the
department or an auditor with experience in the provision of energy
conservation and energy efficiency services approved by the commissioner and
chosen by the public utility. The
audit must specify the energy savings or increased efficiency in the use of
energy within the service territory of the public utility that is the
result of the public utility's spending and investments. The audit must evaluate the
cost-effectiveness of the public utility's conservation programs.
(g)
A gas utility may not spend for or invest in energy conservation improvements
that directly benefit a large customer facility or commercial gas customer
facility for which the commissioner has issued an exemption pursuant to
subdivision 1a, paragraph (b), (c), or (e).
The commissioner shall consider and may require a utility to undertake a
program suggested by an outside source, including a political subdivision, a
nonprofit corporation, or a community organization.
(i) The energy conservation and optimization
plan of each public utility subject to this section must include activities to
improve energy efficiency in public schools served by the utility. As applicable to each public utility, at a
minimum the activities must include programs to increase the efficiency of the
school's lighting and heating and cooling systems, and to provide for building
recommissioning, building operator training, and opportunities to educate
students, teachers, and staff regarding energy efficiency measures implemented
at the school.
(j) The commissioner may require
investments or spending greater than the amounts proposed in a plan filed under
this subdivision or section 216C.17 for a public utility whose most recent
advanced forecast required under section 216B.2422 projects a peak demand
deficit of 100 megawatts or more within five years under midrange forecast
assumptions.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2020, section 216B.241, subdivision 2b, is amended to read:
Subd. 2b. Recovery
of expenses. (a) The
commission shall allow a public utility to recover expenses resulting
from a an energy conservation improvement program required
and optimization plan approved by the department under this section
and contributions and assessments to the energy and conservation account,
unless the recovery would be inconsistent with a financial incentive proposal
approved by the commission. The
commission shall allow a cooperative electric association subject to rate
regulation under section 216B.026, to recover expenses resulting from energy
conservation improvement programs, load management programs, and assessments
and contributions to the energy and conservation account unless the recovery
would be inconsistent with a financial incentive proposal approved by the
commission. In addition,
(b) A public utility may file
annually, or the Public Utilities Commission may require the public
utility to file, and the commission may approve, rate schedules
containing provisions for the automatic adjustment of charges for utility
service in direct relation to changes in the expenses of the public
utility for real and personal property taxes, fees, and permits, the amounts of
which the public utility cannot control.
A public utility is eligible to file for adjustment for real and
personal property taxes, fees, and permits under this subdivision only if, in
the year previous to the year in which it files for adjustment, it has spent or
invested at least 1.75 percent of its gross revenues from provision of electric
service, excluding gross operating revenues from electric service provided in
the state to large electric customer facilities for which the commissioner has
issued an exemption under subdivision 1a, paragraph (b), and 0.6 percent of its
gross revenues from provision of gas service, excluding gross operating
revenues from gas services provided in the state to large electric customer
facilities for which the commissioner has issued an exemption under subdivision
1a, paragraph (b), for that year for energy conservation improvements under
this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2020, section 216B.241, subdivision 3, is amended to read:
Subd. 3.
Ownership of preweatherization
measure or energy conservation improvement.
An (a) A preweatherization measure or energy
conservation improvement made to or installed in a building in accordance with
this section, except systems owned by the a public utility and
designed to turn off, limit, or vary the delivery of energy, are the exclusive
property of the owner of the building except to the extent that the improvement
is subjected to a security interest in favor of the public utility in
case of a loan to the building owner. The
(b)
A public utility has no liability for loss, damage, or injury caused
directly or indirectly by an a preweatherization measure or
energy conservation improvement except for negligence by the utility in purchase,
installation, or modification of the product. purchasing, installing, or
modifying a preweatherization measure or energy conservation improvement.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2020, section 216B.241, subdivision 5, is amended to read:
Subd. 5. Efficient
lighting program. (a) Each public
utility, cooperative electric association, and municipal and
consumer-owned utility that provides electric service to retail customers
and is subject to subdivision 1c or section 216B.2403 shall include as
part of its conservation improvement activities a program to strongly encourage
the use of LED lamps. The program must
include at least a public information campaign to encourage use of LED lamps
and proper management of spent lamps by all customer classifications.
(b) A public utility that provides electric service at retail to 200,000 or more customers shall establish, either directly or through contracts with other persons, including lamp manufacturers, distributors, wholesalers, and retailers and local government units, a system to collect for delivery to a reclamation or recycling facility spent fluorescent and high-intensity discharge lamps from households and from small businesses as defined in section 645.445 that generate an average of fewer than ten spent lamps per year.
(c) A collection system must include establishing reasonably convenient locations for collecting spent lamps from households and financial incentives sufficient to encourage spent lamp generators to take the lamps to the collection locations. Financial incentives may include coupons for purchase of new LED lamps, a cash back system, or any other financial incentive or group of incentives designed to collect the maximum number of spent lamps from households and small businesses that is reasonably feasible.
(d) A public utility that provides electric
service at retail to fewer than 200,000 customers, a cooperative electric
association, or a municipal or a consumer-owned utility that
provides electric service at retail to customers may establish a collection
system under paragraphs (b) and (c) as part of conservation improvement
activities required under this section.
(e) The commissioner of the Pollution
Control Agency may not, unless clearly required by federal law, require a
public utility, cooperative electric association, or municipality or
consumer-owned utility that establishes a household fluorescent and
high-intensity discharge lamp collection system under this section to manage
the lamps as hazardous waste as long as the lamps are managed to avoid breakage
and are delivered to a recycling or reclamation facility that removes mercury
and other toxic materials contained in the lamps prior to placement of the lamps
in solid waste.
(f) If a public utility, cooperative
electric association, or municipal or consumer-owned utility
contracts with a local government unit to provide a collection system under
this subdivision, the contract must provide for payment to the local government
unit of all the unit's incremental costs of collecting and managing spent
lamps.
(g) All the costs incurred by a public
utility, cooperative electric association, or municipal or
consumer-owned utility to promote the use of LED lamps and to collect
fluorescent and high-intensity discharge collect LED lamps under
this subdivision are conservation improvement spending under this section.
(h) For the purposes of this subdivision,
"LED lamp" means a light-emitting diode lamp that consists of a
solid state device that emits visible light when an electric current passes
through a semiconductor bulb or lighting product.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2020, section 216B.241, subdivision 7, is amended to read:
Subd. 7. Low-income
programs. (a) The commissioner shall
ensure that each public utility and association subject to
subdivision 1c provides low-income energy conservation programs to
low-income households. When
approving spending and energy-savings goals for low-income programs, the
commissioner shall consider historic spending and participation levels, energy
savings for achieved by low-income programs, and the number of
low‑income persons residing in the utility's service territory. A municipal utility that furnishes gas
service must spend at least 0.2 percent, and a public utility furnishing
gas service must spend at least 0.4 0.8 percent, of its
most recent three-year average gross operating revenue from residential
customers in the state on low-income programs.
A public utility or association that furnishes electric
service must spend at least 0.1 0.4 percent of its gross
operating revenue from residential customers in the state on low-income
programs. For a generation and
transmission cooperative association, this requirement shall apply to each
association's members' aggregate gross operating revenue from sale of
electricity to residential customers in the state. Beginning in 2010, a utility or association
that furnishes electric service must spend 0.2 percent of its gross operating
revenue from residential customers in the state on low-income programs.
(b) To meet the requirements of paragraph
(a), a public utility or association may contribute money to the
energy and conservation account established under subdivision 2a. An energy conservation improvement plan must
state the amount, if any, of low-income energy conservation improvement funds
the public utility or association will contribute to the energy and conservation account. Contributions must be remitted to the
commissioner by February 1 of each year.
(c) The commissioner shall establish
low-income energy conservation programs to utilize money contributed
contributions made to the energy and conservation account under
paragraph (b). In establishing
low-income programs, the commissioner shall consult political subdivisions,
utilities, and nonprofit and community organizations, especially organizations engaged
in providing energy and weatherization assistance to low-income persons
households. Money contributed
Contributions made to the energy and conservation account under
paragraph (b) must provide programs for low-income persons households,
including low-income renters, in the service territory of the public
utility or association providing the money. The commissioner shall record and report
expenditures and energy savings achieved as a result of low-income programs
funded through the energy and conservation account in the report required under
subdivision 1c, paragraph (g) (f). The commissioner may contract with a
political subdivision, nonprofit or community organization, public utility, municipality,
or cooperative electric association consumer-owned utility to
implement low-income programs funded through the energy and conservation
account.
(d) A public utility or
association may petition the commissioner to modify its required spending
under paragraph (a) if the utility or association and the commissioner
have been unable to expend the amount required under paragraph (a) for three
consecutive years.
(e) The commissioner must develop and
establish guidelines to determine the eligibility of multifamily buildings to
participate in low-income energy conservation programs. Notwithstanding the definition of low-income
household in section 216B.2402, for purposes of determining the eligibility of
multifamily buildings for low-income programs a public utility may apply the
most recent guidelines published by the department. The commissioner must convene a stakeholder
group to review and update guidelines by July 1, 2022, and at least once every
five years thereafter. The
stakeholder group must include but is not limited to representatives of public
utilities as defined in section 216B.02, subdivision 4; municipal electric or
gas utilities; electric cooperative associations; multifamily housing owners
and developers; and low-income advocates.
(f) Up to 15 percent of a public
utility's spending on low-income programs may be spent on preweatherization
measures. A public utility is prohibited
from claiming energy savings from preweatherization measures toward the public
utility's energy savings goal.
(g)
The commissioner must, by order, establish a list of preweatherization measures
eligible for inclusion in low‑income programs no later than March 15,
2022.
(h) A Healthy AIR (Asbestos Insulation
Removal) account is established as a separate account in the special revenue
fund in the state treasury. A public
utility may elect to contribute money to the Healthy AIR account to provide
preweatherization measures to households eligible for weatherization assistance
under section 216C.264. Remediation
activities must be executed in conjunction with federal weatherization
assistance program services. Money contributed to the account counts
toward: (1) the minimum low-income
spending requirement in paragraph (a); and (2) the cap on
preweatherization measures under paragraph (f).
Money in the account is annually appropriated to the commissioner of
commerce to pay for Healthy AIR-related activities.
(e) (i) The costs and
benefits associated with any approved low-income gas or electric conservation
improvement program that is not cost-effective when considering the costs and
benefits to the public utility may, at the discretion of the utility, be
excluded from the calculation of net economic benefits for purposes of
calculating the financial incentive to the public utility. The energy and demand savings may, at the
discretion of the public utility, be applied toward the calculation of
overall portfolio energy and demand savings for purposes of determining
progress toward annual goals and in the financial incentive mechanism.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2020, section 216B.241, subdivision 8, is amended to read:
Subd. 8. Assessment. The commission or department may assess public
utilities subject to this section in proportion to their respective to
carry out the purposes of subdivisions 1d, 1e, and 1f. An assessment under this subdivision must be
proportionate to a public utility's gross operating revenue from sales of
gas or electric service within the state Minnesota during the
last calendar year to carry out the purposes of subdivisions 1d, 1e, and 1f. Those assessments, as applicable. Assessments made under this subdivision
are not subject to the cap on assessments provided by section 216B.62, or any
other law.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision to read:
Subd. 11. Programs
for efficient fuel-switching improvements; electric utilities. (a) A public utility providing
electric service at retail may include in the plan required under subdivision 2
programs to implement efficient fuel-switching improvements or combinations of
energy conservation improvements, fuel-switching improvements, and load
management. For each program, the public
utility must provide a proposed budget, an analysis of the program's
cost-effectiveness, and estimated net energy and demand savings.
(b) The department may approve proposed
programs for efficient fuel-switching improvements if the department determines
the improvements meet the requirements of paragraph (d). For fuel-switching improvements that require
the deployment of electric technologies, the department must also consider
whether the fuel-switching improvement can be operated in a manner that
facilitates the integration of variable renewable energy into the electric
system. The net benefits from an
efficient fuel-switching improvement that is integrated with an energy
efficiency program approved under this section may be counted toward the net
benefits of the energy efficiency program if the department determines the
primary purpose and effect of the program is energy efficiency.
(c) A public utility may file a rate
schedule with the commission that provides for annual cost recovery of
reasonable and prudent costs incurred to implement and promote efficient
fuel-switching programs. The commission
may not approve a financial incentive to encourage efficient fuel-switching
programs operated by a public utility providing electric service.
(d)
A fuel-switching improvement is deemed efficient if, applying the technical
criteria established under section 216B.241, subdivision 1d, paragraph (b), the
improvement meets the following criteria, relative to the fuel that is being
displaced:
(1) results in a net reduction in the
amount of source energy consumed for a particular use, measured on a fuel‑neutral
basis;
(2) results in a net reduction of
statewide greenhouse gas emissions as defined in section 216H.01, subdivision
2, over the lifetime of the improvement.
For an efficient fuel-switching improvement installed by an electric
utility, the reduction in emissions must be measured based on the hourly
emission profile of the electric utility, using the hourly emissions profile in
the most recent resource plan approved by the commission under section
216B.2422;
(3) is cost-effective, considering the
costs and benefits from the perspective of the utility, participants, and
society; and
(4) is installed and operated in a
manner that improves the utility's system load factor.
(e) For purposes of this subdivision,
"source energy" means the total amount of primary energy required to
deliver energy services, adjusted for losses in generation, transmission, and
distribution, and expressed on a fuel‑neutral basis.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision to read:
Subd. 12. Programs
for efficient fuel-switching improvements; natural gas utilities. (a) As part of a public utility's plan
filed under subdivision 2, a public utility that provides natural gas service
to Minnesota retail customers may propose as an energy conservation improvement
one or more programs to install electric technologies that reduce the
consumption of natural gas by the utility's retail customers. The commissioner may approve a proposed
program if the commissioner, applying the technical criteria developed under
section 216B.241, subdivision 1d, paragraph (b), determines:
(1) the electric technology to be
installed meets the criteria established under section 216B.241, subdivision
11, paragraph (d), clauses (1) and (2); and
(2) the program is cost-effective, considering
the costs and benefits to ratepayers, the utility, participants, and society.
(b) If a program is approved by the
commission under this subdivision, the public utility may count the program's
energy savings toward the public utility's energy savings goal under section
216B.241, subdivision 1c. Notwithstanding
section 216B.2402, subdivision 4, efficient fuel-switching achieved through
programs approved under this subdivision is energy conservation.
(c) A public utility may file rate
schedules with the commission that provide annual cost-recovery for programs
approved by the department under this subdivision, including reasonable and
prudent costs incurred to implement and promote the programs.
(d) The commission may approve, modify,
or reject a proposal made by the department or a utility for an incentive plan
to encourage efficient fuel-switching programs approved under this subdivision,
applying the considerations established under section 216B.16, subdivision 6c,
paragraphs (b) and (c). The commission
may approve a financial incentive mechanism that is calculated based on the
combined energy savings and net benefits that the commission determines have
been achieved by a program approved under this subdivision, provided the
commission determines that the financial incentive mechanism is in the
ratepayers' interest.
(e)
A public utility is not eligible for a financial incentive for an efficient
fuel-switching program under this subdivision in any year in which the utility
achieves energy savings below one percent of gross annual retail energy sales,
excluding savings achieved through fuel-switching programs.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision to read:
Subd. 13. Cost-effective
load management programs. (a)
A public utility may include in the utility's plan required under subdivision 2
programs to implement load management activities, or combinations of energy
conservation improvements, fuel-switching improvements, and load management
activities. For each program the public
utility must provide a proposed budget, cost-effectiveness analysis, and
estimated net energy and demand savings.
(b) The commissioner may approve a
proposed program if the commissioner determines the program is cost‑effective,
considering the costs and benefits to ratepayers, the utility, participants,
and society.
(c) A public utility providing retail
service to Minnesota customers may file rate schedules with the commission that
provide for annual cost recovery of reasonable and prudent costs incurred to
implement and promote cost‑effective load management programs approved by
the department under this subdivision.
(d) In determining whether to approve,
modify, or reject a proposal made by the department or a public utility for an
incentive plan to encourage investments in load management programs, the
commission shall consider whether the plan:
(1) is needed to increase the public
utility's investment in cost-effective load management;
(2) is compatible with the interest of
the public utility's ratepayers; and
(3) links the incentive to the public
utility's performance in achieving cost-effective load management.
(e) The commission may structure an
incentive plan to encourage cost-effective load management programs as an asset
on which a public utility earns a rate of return at a level the commission
determines is reasonable and in the public interest.
(f) The commission may include the net
benefits from a load management activity integrated with an energy efficiency
program approved under this section in the net benefits of the energy
efficiency program for purposes of a financial incentive program under section
216B.16, subdivision 6c, if the department determines the primary purpose of
the load management activity is energy efficiency.
(g) A public utility is not eligible
for a financial incentive for a load management program in any year in which
the utility achieves energy savings below one percent of gross annual retail
energy sales, excluding savings achieved through load management programs.
(h) The commission may include net
benefits from a particular load management activity in an incentive plan under
this subdivision or section 216B.16, subdivision 6c, but not both.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision to read:
Subd. 14. Minnesota
efficient technology accelerator. (a)
A nonprofit organization with extensive experience implementing energy
efficiency programs and conducting energy-efficient technology research in
Minnesota may file a proposal with the commissioner for a program to accelerate
deployment and reduce the cost of emerging and innovative efficient
technologies and approaches and result in lower energy costs for Minnesota
ratepayers. The program must include
strategic initiatives with technology manufacturers to improve the efficiency
and performance of products, and with equipment installers and other key actors
in the technology supply chain. The
program's goals are to achieve cost-effective energy savings for Minnesota
utilities, provide bill savings to Minnesota utility consumers, enhance
employment opportunities in Minnesota, and avoid greenhouse gas emissions.
(b) Prior to developing and filing a
proposal, the nonprofit must submit to the commissioner a notice of intent to
file a proposal under this subdivision that describes the nonprofit's
eligibility with respect to the requirements of paragraph (a). The commissioner shall review the notice of
intent and issue a determination of eligibility within 30 days of the date the
notice of intent is filed.
(c) Upon receiving approval from the
commissioner to file a proposal under this section, a nonprofit organization
must engage interested stakeholders in discussions regarding, at a minimum, the
following elements required of a program proposal under this subdivision:
(1) a proposed budget and operational
guidelines for the accelerator;
(2) proposed methodologies to estimate,
evaluate, and allocate energy savings and net benefits from program activities. Energy savings and net benefits from program
activities must be allocated to participating utilities and must be considered
when determining the cost-effectiveness of energy savings achieved by the
program and related incentives;
(3) a process to identify and select
technologies that:
(i) address energy use in residential, commercial,
and industrial buildings; and
(ii) benefit utility customers in
proportion to the funds contributed to the program by electric and natural gas
utilities, respectively; and
(4) a process to identify and track
performance metrics for each technology selected so that progress toward
achieving energy savings can be measured, including one or more methods to
evaluate cost-effectiveness.
(d) No earlier than 180 days from the
date of the commissioner's eligibility determination under paragraph (b), the
nonprofit may file a program proposal under this subdivision. The filing must address each of the elements
listed in paragraph (c), clauses (1) to (4), and the recommendations and
concerns identified in the stakeholder engagement process required under
paragraph (c). Within 90 days of the
filing of the proposal, after notice and comment, and after the commissioner
has considered the estimated program costs and benefits from the perspectives
of ratepayers, utilities, and society, the commissioner shall approve, modify,
or reject the proposal. An approved
program may have a term extending up to five years, and may be renewed by the
commissioner one or more times for additional terms of up to five years.
(e) Upon approval of a program under
paragraph (d), each public utility with over 30,000 customers must participate
in the program and contribute to the approved program budget in proportion to
the public utility's gross operating revenue from sales of gas or electric
service in Minnesota, excluding revenues from large customer facilities
exempted under subdivision 1a. A
participating utility is not required to contribute more than the following
percentages of the utility's spending approved by the commission in the plan
filed under subdivision 2: (1) two
percent in the program's initial two years; (2) 3.5 percent in the program's
third and fourth years; and (3) five percent each year thereafter. Other utilities may elect to participate in
an approved program.
(f)
A participating utility may request the commissioner to adjust its approved
annual budget under subdivision 2, if
(g) Costs incurred by a public utility
under this subdivision are recoverable under subdivision 2b as an assessment to
the energy and conservation account. Amounts
provided to the account under this subdivision are not subject to the cap on
assessments in section 216B.62. The
commissioner may make expenditures from the account for the purposes of this
subdivision, including amounts necessary to reimburse administrative costs
incurred by the department under this subdivision. Costs for research projects under this
subdivision that the commissioner determines may be duplicative to projects
that would be eligible for funding under subdivision 1e, paragraph (a), may be
deducted from the assessment under subdivision 1e for utilities participating
in the accelerator.
EFFECTIVE
DATE. This section is effective
immediately upon enactment.
Sec. 22. Minnesota Statutes 2020, section 216B.2412, subdivision 3, is amended to read:
Subd. 3. Pilot
programs. The commission shall allow
one or more rate-regulated utilities to participate in a pilot program to
assess the merits of a rate-decoupling strategy to promote energy efficiency
and conservation. Each pilot program
must utilize the criteria and standards established in subdivision 2 and be
designed to determine whether a rate-decoupling strategy achieves energy
savings. On or before a date established
by the commission, the commission shall require electric and gas utilities that
intend to implement a decoupling program to file a decoupling pilot plan, which
shall be approved or approved as modified by the commission. A pilot program may not exceed three years in
length. Any extension beyond three years
can only be approved in a general rate case, unless that decoupling program was
previously approved as part of a general rate case. The commission shall report on the
programs annually to the chairs of the house of representatives and senate
committees with primary jurisdiction over energy policy.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision to read:
Subd. 7a. Energy
storage systems; installation. The
commission shall, as part of an order with respect to a public utility's
integrated resource plan filed under this section, require a public utility to
install one or more energy storage systems, provided that the commission finds
the investments are reasonable, prudent, and in the public interest. In determining the aggregate capacity of the
energy storage systems ordered under this subdivision, the commission must
consider the public utility's assessment of energy storage systems contained in
the public utility's integrated resource plan, as required under subdivision 7.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any order issued to
a public utility by the commission in an integrated resource plan proceeding
after July 1, 2021.
Sec. 24. [216B.2427]
ENERGY STORAGE SYSTEM; APPLICATION.
Subdivision 1. Definition. For the purposes of this section,
"energy storage system" has the meaning given in section 216B.2422,
subdivision 1, paragraph (f).
Subd. 2. Application
requirement. No later than
one year following the commission's order to a public utility in an integrated
resource plan proceeding under section 216B.2422, the public utility must
submit an application to the commission for review and approval to install one
or more energy storage systems whose aggregate capacity meets or exceeds that
ordered by the commission in the public utility's most recent integrated
resource plan proceeding under section 216B.2422, subdivision 7a.
Subd. 3. Application
contents. (a) Each
application submitted under this section shall contain the following
information:
(1) technical specifications of the
energy storage system, including but not limited to:
(i) the maximum amount of electric
output that the energy storage system can provide;
(ii) the length of time the energy
storage system can sustain maximum output;
(iii) the location of the project and a
description of the analysis conducted to determine the location;
(iv) a description of the public
utility's electric system needs that the proposed energy storage system
address;
(v) a description of the types of
services the energy storage system is expected to provide; and
(vi) a description of the technology
required to construct, operate, and maintain the energy storage system,
including any data or communication system necessary to operate the energy
storage system;
(2) the estimated cost of the project,
including:
(i) capital costs;
(ii) the estimated cost per unit of
energy delivered by the energy storage system; and
(iii) an evaluation of the
cost-effectiveness of the energy storage system;
(3) the estimated benefits of the energy
storage system to the public utility's electric system, including but not
limited to:
(i) deferred investments in generation,
transmission, or distribution capacity;
(ii) reduced need for electricity during
times of peak demand;
(iii) improved reliability of the public
utility's transmission or distribution system; and
(iv) improved integration of the public
utility's renewable energy resources;
(4) how the addition of an energy
storage system complements proposed actions of the public utility described in
the most recent integrated resource plan submitted under section 216B.2422 to
meet expected demand with the least cost combination of resources; and
(5) any additional information required
by the commission.
(b) A public utility must include in the
application an evaluation of the potential to store energy in the public
utility's electric system and must identify geographic areas in the public
utility's service area where the deployment of energy storage systems has the
greatest potential to achieve the economic benefits identified in paragraph
(a), clause (3).
Subd. 4. Commission
review. The commission shall
review each proposal submitted under this section and may approve, reject, or
modify the proposal. The commission
shall approve a proposal the commission determines is in the public interest
and reasonably balances the value derived from the deployment of an energy
storage system for ratepayers and the public utility's operations with the
costs of procuring, constructing, operating, and maintaining the energy storage
system.
Subd. 5. Cost
recovery. A public utility
may recover from ratepayers all costs prudently incurred by the public utility
to deploy an energy storage system approved by the commission under this
section, net of any revenues generated by the operation of the energy storage
system.
Subd. 6. Commission
authority; orders. The
commission may issue orders necessary to implement and administer this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2020, section 216C.05, subdivision 2, is amended to read:
Subd. 2. Energy policy goals. It is the energy policy of the state of Minnesota that: